GAAP/Non-GAAP Reconciliation and Financial Package

GAAP/Non-GAAP Reconciliation
and Financial Package
January 29, 2015
The World Leader in Serving Science
Note: Page 6 of this document
contains segment data for
historical periods that has been
recast to reflect the creation of the
Life Sciences Solutions segment
and the transfer of businesses
between segments for Thermo
Fisher Scientific.
Use of Non GAAP Financial Measures
In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), we use certain non-GAAP financial
measures, including adjusted EPS, adjusted operating income and adjusted operating margin, which exclude restructuring and other costs/income and
amortization of acquisition-related intangible assets. Adjusted EPS also excludes certain other gains and losses, tax provisions/benefits related to the
previous items, benefits from tax credit carryforwards, the impact of significant tax audits or events and discontinued operations. We exclude the above
items because they are outside of our normal operations and/or, in certain cases, are difficult to forecast accurately for future periods. We also use a nonGAAP measure, free cash flow, which excludes operating cash flows from discontinued operations and deducts net capital expenditures. We believe that
the use of non-GAAP measures helps investors to gain a better understanding of our core operating results and future prospects, consistent with how
management measures and forecasts the company’s performance, especially when comparing such results to previous periods or forecasts.
For example:
We exclude costs and tax effects associated with restructuring activities, such as reducing overhead and consolidating facilities. We believe that the costs
related to these restructuring activities are not indicative of our normal operating costs.
We exclude certain acquisition-related costs, including charges for the sale of inventories revalued at the date of acquisition and significant transaction
costs. We exclude these costs because we do not believe they are indicative of our normal operating costs.
We exclude the expense and tax effects associated with the amortization of acquisition-related intangible assets because a significant portion of the
purchase price for acquisitions may be allocated to intangible assets that have lives of 5 to 20 years. Exclusion of the amortization expense allows
comparisons of operating results that are consistent over time for both our newly acquired and long-held businesses and with both acquisitive and nonacquisitive peer companies.
We also exclude certain gains/losses and related tax effects, benefits from tax credit carryforwards and the impact of significant tax audits or events (such
as the one-time effect on deferred tax balances of enacted changes in tax rates), which are either isolated or cannot be expected to occur again with any
regularity or predictability and that we believe are not indicative of our normal operating gains and losses. For example, we exclude gains/losses from
items such as the sale of a business or real estate, significant litigation-related matters, curtailments of pension plans, the early retirement of debt and
discontinued operations.
We also report free cash flow, which is operating cash flow, net of capital expenditures, and also excludes operating cash flows from discontinued
operations to provide a view of the continuing operations’ ability to generate cash for use in acquisitions and other investing and financing activities.
Thermo Fisher’s management uses these non-GAAP measures, in addition to GAAP financial measures, as the basis for measuring the company’s core
operating performance and comparing such performance to that of prior periods and to the performance of our competitors. Such measures are also used
by management in their financial and operating decision-making and for compensation purposes.
The non-GAAP financial measures of Thermo Fisher’s results of operations and cash flows included herein are not meant to be considered superior to or
a substitute for Thermo Fisher’s results of operations prepared in accordance with GAAP. Reconciliations of such non-GAAP financial measures to the
most directly comparable GAAP financial measures are set forth in the accompanying tables.
Table of Contents
Page
1.
Annual Reconciliation of GAAP to Adjusted P&L (2009 - 2014)
3.
Quarterly Reconciliation of GAAP to Adjusted P&L (2013 - 2014)
5.
Free Cash Flow, Return on Invested Capital and Return on Equity (2009 - 2014)
6.
Recast Segment Data - Thermo Fisher Stand-alone (2012 - 2013)
7.
Segment Data (2014)
8.
Balance Sheet and Leverage Ratios (2011 - 2014)
9.
Debt (2011 - 2014)
10.
Publicly Announced Acquisitions/Divestitures (2011 - 2014)
11.
Capital Deployment (2011 - 2014)
12.
Fiscal Calendar (2014 - 2015)
Annual Reconciliation of GAAP to Adjusted P&L
(Dollars in millions except EPS)
2009
2010
2011
2012
2013
2014
GAAP Consolidated Revenues
9,741.0
10,393.1
11,558.8
12,509.9
13,090.3
16,889.6
-4%
2%
-2%
-4%
7%
3%
0%
4%
11%
8%
5%
2%
0%
3%
29%
25%
0%
4%
7%
1%
2%
3% **
3%
1%
-2%
4%
Revenue Growth
Acquisitions net of Divestitures
Currency Translation
Organic Revenue Growth
Pro Forma Revenue Growth (a)
Acquisitions net of Divestitures
Currency Translation
Pro Forma Organic Revenue Growth (a)
$
%
$
%
$
%
$
%
$
%
$
%
GAAP Gross Margin
Cost of Revenues Charges (b)
Amortization of Acquisition-related Intangible Assets
Adjusted Gross Margin
3,854.5 39.6%
6.7 0.1%
118.8 1.2%
3,980.0 40.9%
4,261.5 41.0%
13.2 0.1%
129.2 1.3%
4,403.9 42.4%
4,794.0 41.5%
72.6 0.6%
175.9 1.5%
5,042.5 43.6%
5,295.5 42.3%
55.6 0.4%
221.4 1.8%
5,572.5 44.5%
5,529.1 42.2%
28.6 0.2%
222.0 1.8%
5,779.7 44.2%
7,492.0 44.4%
327.6 1.9%
427.0 2.5%
8,246.6 48.8%
GAAP SG&A Expense
Selling, General and Administrative Costs (c)
Amortization of Acquisition-related Intangible Assets
Adjusted SG&A Expense
2,575.8 26.4%
(1.5) 0.0%
(461.1) -4.7%
2,113.2 21.7%
2,728.8 26.3%
(3.0) 0.0%
(425.5) -4.2%
2,300.3 22.1%
3,106.5
(61.5)
(472.0)
2,573.0
26.9%
-0.5%
-4.1%
22.3%
3,354.9
(12.5)
(526.2)
2,816.2
26.8%
-0.1%
-4.2%
22.5%
3,446.3
(73.5)
(541.1)
2,831.7
26.3%
-0.6%
-4.1%
21.6%
4,896.1
(130.7)
(904.7)
3,860.7
29.0%
-0.8%
-5.3%
22.9%
340.2
2.9%
376.4
3.0%
395.5
3.0%
691.1
4.1%
14.8%
1.9%
0.8%
-3.5%
7.9%
21.9%
GAAP R&D Expense
243.5
2.5%
284.4
2.7%
GAAP Operating Income
Cost of Revenues Charges (b)
Selling, General and Administrative Costs (c)
Restructuring and Other Costs, Net (d)
Amortization of Acquisition-related Intangible Assets
Adjusted Operating Income
976.3 10.0%
6.7 0.1%
1.5 0.0%
58.9 0.6%
579.9 6.0%
1,623.3 16.7%
1,188.1 11.4%
13.2 0.1%
3.0 0.0%
60.2 0.6%
554.7 5.4%
1,819.2 17.5%
1,250.8 10.8%
72.6 0.6%
61.5 0.5%
96.5 0.9%
647.9 5.6%
2,129.3 18.4%
1,482.1 11.8%
55.6 0.4%
12.5 0.1%
82.1 0.7%
747.6 6.0%
2,379.9 19.0%
1,609.6 12.3%
28.6 0.2%
73.5 0.6%
77.7 0.6%
763.1 5.8%
2,552.5 19.5%
2,503.0
327.6
130.7
(598.2)
1,331.7
3,694.8
Add back Depreciation Expense
Adjusted EBITDA
179.4 1.8%
1,802.7 18.5%
185.0 1.8%
2,004.2 19.3%
211.7 1.9%
2,341.0 20.3%
236.1 1.9%
2,616.0 20.9%
236.8 1.8%
2,789.3 21.3%
353.1 2.1%
4,047.9 24.0%
** Results do not sum due to rounding.
(a) Revenue growth in 2011 and 2012 is calculated on a pro forma basis which includes the pre-acquisition results of 1) Dionex from the beginning of the second quarter 2011 and for the comparable prior year quarters; and 2) the pre-acquisition results of Phadia from the beginning
of the third quarter 2011 and for the comparable prior year quarters.
(b) The excluded items from cost of revenues include inventory charges, principally for the sale of inventories revalued at the date of acquisition and accelerated depreciation on assets to be abandoned as a result of real estate consolidation; and in 2014, charges to conform the
accounting policies of Life Technologies with the company's accounting policies.
(c) The excluded items from selling, general and administrative costs include significant acquisition transaction costs and revisions of estimated contingent consideration for recent acquisitions; in 2009, 2010 and 2012 gains due to settlement of certain product liability-related
matters; in 2011, 2012, 2013 and 2014, charges associated with product liability litigation; and in 2014, charges to conform the accounting policies of Life Technologies with the company's accounting policies.
(d) Restructuring and other costs consist principally of severance and retention costs; abandoned facility and other expenses of real estate consolidation; material impairments; and significant gains and losses on litigation-related matters, curtailments/settlements of pension plans,
and the sale of businesses, product lines and property.
(Annual P&L Reconciliation continued on the next page)
Page 1 of 12
Annual Reconciliation of GAAP to Adjusted P&L
(Dollars in millions except EPS)
2009
$
GAAP Tax Provision
Tax Effect of Adjusted Items (f)
Adjusted Tax Provision
GAAP Net Income
Cost of Revenues Charges (b)
Selling, General and Administrative Costs (c)
Restructuring and Other Costs, Net (d)
Amortization of Acquisition-related Intangible Assets
Other Expense (Income) (e)
Income Tax Benefit (f)
(Income) Loss from Discontinued Operations, Net of Tax
Adjusted Net Income
GAAP Diluted EPS
GAAP Diluted EPS Growth
Cost of Revenues Charges, Net of Tax (b)
Selling, General and Administrative Costs, Net of Tax (c)
Restructuring and Other Costs, Net of Tax (d)
Amortization of Acquisition-related Intangible Assets, Net of Tax
Other Expense (Income), Net of Tax (e)
Income Tax (Benefit) Provision (f)
(Income) Loss from Discontinued Operations, Net of Tax
Adjusted Diluted EPS
Adjusted Diluted EPS Growth
2010
%
46.7 5.5%
239.8 13.3%
286.5 18.8%
850.3
6.7
1.5
58.9
579.9
20.4
(239.8)
(43.2)
1,234.7
$
2011
%
101.6 9.3%
242.6 10.4%
344.2 19.7%
1,035.6
13.2
3.0
60.2
554.7
28.3
(242.6)
(49.5)
1,402.9
2.01
0.01
0.00
0.10
0.88
0.03
(0.01)
(0.10)
2.92
109.4 9.7%
269.1 9.4%
378.5 19.1%
0.02
0.01
0.10
0.89
0.04
(0.04)
(0.12)
3.43
2013
%
11.0 0.9%
351.7 15.8%
362.7 16.7%
2014
%
40.4 3.1%
300.7 11.6%
341.1 14.7%
%
191.7 9.2%
283.3 5.3%
475.0 14.5%
4.71
8%
0.05
0.16
0.16
1.45
0.09
0.01
0.02
5.42
19%
$
1,894.4
327.6
130.7
(598.2)
1,331.7
(3.1)
(283.3)
1.1
2,800.9
3.48
-7%
0.11
0.03
0.15
1.36
0.00
(0.14)
0.22
4.94
21%
$
1,273.3
28.6
73.5
77.7
763.1
60.4
(300.7)
5.8
1,981.7
3.21
37%
0.13
0.13
0.16
1.12
(0.05)
0.01
(0.80)
4.16
17%
$
1,177.9
55.6
12.5
82.1
747.6
5.3
(351.7)
80.5
1,809.8
3.46
26%
-3%
2012
%
1,329.9
72.6
61.5
96.5
647.9
(31.8)
(269.1)
(306.5)
1,601.0
2.53
-11%
$
35%
0.55
0.24
(0.79)
2.27
(0.01)
(0.01)
0.00
6.96
10%
28%
(a) Revenue growth in 2011 and 2012 is calculated on a pro forma basis which includes the pre-acquisition results of 1) Dionex from the beginning of the second quarter 2011 and for the comparable prior year quarters; and 2) the pre-acquisition results of Phadia from the beginning
of the third quarter 2011 and for the comparable prior year quarters.
(b) The excluded items from cost of revenues include inventory charges, principally for the sale of inventories revalued at the date of acquisition and accelerated depreciation on assets to be abandoned as a result of real estate consolidation; and in 2014, charges to conform the
accounting policies of Life Technologies with the company's accounting policies.
(c) The excluded items from selling, general and administrative costs include significant acquisition transaction costs and revisions of estimated contingent consideration for recent acquisitions; in 2009, 2010 and 2012 gains due to settlement of certain product liability-related
matters; in 2011, 2012, 2013 and 2014, charges associated with product liability litigation; and in 2014, charges to conform the accounting policies of Life Technologies with the company's accounting policies.
(d) Restructuring and other costs consist principally of severance and retention costs; abandoned facility and other expenses of real estate consolidation; material impairments; and significant gains and losses on litigation-related matters, curtailments/settlements of pension plans,
and the sale of businesses, product lines and property.
(e) The excluded items from other expense/income, net, represent amortization of acquisition-related intangible assets and restructuring charges of the company's equity investments; in 2009, 2010 and 2012, losses on the extinguishment of debt facilities; in 2009 and 2014 losses
from other-than-temporary declines in fair market value of investments; in 2010, 2011 and 2013, costs to obtain short-term financing commitments related to acquisitions; in 2011, 2013 and 2014, gains on available-for-sale and equity investments; and in 2013, realized gains on
available-for-sale investments irrevocably contributed to the company's U.K. pension plans.
(f) The excluded items from income tax benefit/provision include the tax benefits/provisions related to the above excluded items, benefit from tax credit carryforwards, the impact of the resolution of significant tax audits and the tax benefit from adjusting the company's deferred tax
balances as a result of tax rate changes.
Page 2 of 12
Quarterly Reconciliation of GAAP to Adjusted P&L
(Dollars in millions except EPS)
Revenue
Life Sciences Solutions Segment
Analytical Instruments Segment
Specialty Diagnostics Segment
Laboratory Products and Services Segment
Eliminations
Total Revenue
Q1-13
Q2-13
Q3-13
Q4-13
Q1-14
Q2-14
Q3-14
Q4-14
172.6
740.1
805.6
1,556.3
(83.1)
3,191.5
181.0
761.0
793.6
1,595.0
(90.5)
3,240.1
167.2
765.4
759.3
1,594.7
(94.8)
3,191.8
191.7
887.7
833.2
1,652.8
(98.5)
3,466.9
835.5
769.9
813.7
1,590.5
(106.1)
3,903.5
1,103.1
793.4
855.1
1,699.4
(129.1)
4,321.9
1,071.9
786.5
811.8
1,628.7
(127.5)
4,171.4
1,185.2
902.4
863.0
1,682.9
(140.7)
4,492.8
4%
2%
0%
2%
3%
1%
0%
2%
6%
0%
0%
6%
22%
20%
0%
2%
33%
27%
1%
5%
31%
27%
0%
4%
4%
3%
-1%
3% **
Reported Revenue Growth
Acquisitions net of Divestitures
Currency Translation
Organic Revenue Growth
$
%
$
%
$
%
$
%
$
%
$
%
$
30%
26%
-3%
6% **
%
$
%
GAAP Cost of Goods Sold
Cost of Revenues Charges (a)
Amortization of Acquisition-related Intangible Assets
Adjusted Cost of Goods Sold
1,855.2
(13.2)
(56.1)
1,785.9
58.1%
-0.4%
-1.7%
56.0%
1,876.9
(13.1)
(56.0)
1,807.8
57.9%
-0.4%
-1.7%
55.8%
1,843.9
(0.9)
(55.7)
1,787.3
57.8%
0.0%
-1.8%
56.0%
1,985.2
(1.4)
(54.2)
1,929.6
57.3%
0.0%
-1.6%
55.7%
2,283.5
(168.5)
(91.7)
2,023.3
58.5%
-4.3%
-2.4%
51.8%
2,475.4
(156.1)
(114.4)
2,204.9
57.3%
-3.6%
-2.7%
51.0%
2,237.8
(2.1)
(110.8)
2,124.9
53.6%
-0.1%
-2.6%
50.9%
2,400.9
(0.9)
(110.1)
2,289.9
53.4%
0.0%
-2.4%
51.0%
GAAP Gross Margin
Cost of Revenues Charges (a)
Amortization of Acquisition-related Intangible Assets
Adjusted Gross Margin
1,336.3
13.2
56.1
1,405.6
41.9%
0.4%
1.7%
44.0%
1,363.2
13.1
56.0
1,432.3
42.1%
0.4%
1.7%
44.2%
1,347.9
0.9
55.7
1,404.5
42.2%
0.0%
1.8%
44.0%
1,481.7
1.4
54.2
1,537.3
42.7%
0.0%
1.6%
44.3%
1,620.0
168.5
91.7
1,880.2
41.5%
4.3%
2.4%
48.2%
1,846.5
156.1
114.4
2,117.0
42.7%
3.6%
2.7%
49.0%
1,933.6
2.1
110.8
2,046.5
46.4%
0.1%
2.6%
49.1%
2,091.9
0.9
110.1
2,202.9
46.6%
0.0%
2.4%
49.0%
829.5
(1.3)
(135.9)
692.3
26.0%
-0.1%
-4.2%
21.7%
869.6
(22.6)
(135.2)
711.8
26.8%
-0.7%
-4.1%
22.0%
848.5
(24.0)
(135.3)
689.2
26.6%
-0.7%
-4.3%
21.6%
898.7
(25.6)
(134.7)
738.4
25.9%
-0.7%
-3.9%
21.3%
1,177.0
(82.8)
(194.2)
900.0
30.2%
-2.1%
-5.0%
23.1%
1,253.8
(14.9)
(229.2)
1,009.7
29.0%
-0.3%
-5.3%
23.4%
1,228.7
(20.3)
(252.1)
956.3
29.5%
-0.5%
-6.1%
22.9%
1,236.6
(12.7)
(229.2)
994.7
27.5%
-0.3%
-5.1%
22.1%
98.2
3.1%
96.7
3.0%
95.9
3.0%
104.7
3.0%
149.7
3.8%
183.7
4.3%
175.2
4.2%
182.5
4.1%
GAAP Operating Income
Cost of Revenues Charges (a)
Selling, General and Administrative Costs (b)
Restructuring and Other Costs (Income), Net (c)
Amortization of Acquisition-related Intangible Assets
Adjusted Operating Income
387.1
13.2
1.3
21.5
192.0
615.1
12.1%
0.4%
0.1%
0.7%
6.0%
19.3%
375.4
13.1
22.6
21.5
191.2
623.8
11.6%
0.4%
0.7%
0.7%
5.9%
19.3%
392.1
0.9
24.0
11.4
191.0
619.4
12.3%
0.0%
0.7%
0.4%
6.0%
19.4%
455.0
1.4
25.6
23.3
188.9
694.2
13.1%
0.0%
0.7%
0.7%
5.5%
20.0%
875.5
168.5
82.8
(582.2)
285.9
830.5
22.4%
4.3%
2.1%
-14.9%
7.4%
21.3%
348.1
156.1
14.9
60.9
343.6
923.6
8.1%
3.6%
0.3%
1.4%
8.0%
21.4%
640.3
2.1
20.3
(110.6)
362.9
915.0
15.3%
0.1%
0.5%
-2.7%
8.7%
21.9%
639.1
0.9
12.7
33.7
339.3
1,025.7
14.2%
0.0%
0.3%
0.7%
7.6%
22.8%
Add back Depreciation Expense
Adjusted EBITDA
59.0
674.1
1.8%
21.1%
58.0
681.8
1.7%
21.0%
59.4
678.8
1.9%
21.3%
60.4
754.6
1.8%
21.8%
79.7
910.2
2.0%
23.3%
91.2
1,014.8
2.1%
23.5%
2.3%
24.2%
89.4
1,115.1
2.0%
24.8%
GAAP SG&A Expense
Selling, General and Administrative Costs, Net (b)
Amortization of Acquisition-related Intangible Assets
Adjusted SG&A Expense
GAAP R&D Expense
92.8
1,007.8
** Results do not sum due to rounding.
(a) The excluded items from cost of revenues include inventory charges, principally for the sale of inventories revalued at the date of acquisition, and accelerated depreciation on assets to be abandoned as a result of real estate consolidation; and in Q1 2014, charges to conform the accounting policies of Life Technologies with the company's accounting
policies.
(b) The excluded items from selling, general and administrative costs include significant acquisition transaction costs and revisions of estimated contingent consideration for recent acquisitions; in Q3 2013 and Q3 2014, charges associated with product liability litigation; and in Q1 2014, charges to conform the accounting policies of Life Technologies with
the company's accounting policies.
(c) Restructuring and other costs (income) consist principally of severance and retention costs; abandoned facility and other expenses of real estate consolidation; material impairments; and significant gains and losses on litigation-related matters, curtailments/settlements of pension plans, and the sale of businesses, product lines and property.
(Quarterly P&L Reconciliation continued on the next page)
Page 3 of 12
Quarterly Reconciliation of GAAP to Adjusted P&L
(Dollars in millions except EPS)
Q1-13
$
GAAP Tax Provision
Tax Effect of Adjusted Items (e)
Adjusted Tax Provision
2.1
63.3
65.4
GAAP Net Income
Cost of Revenues Charges (a)
Selling, General and Administrative Costs (b)
Restructuring and Other Costs (Income), Net (c)
Amortization of Acquisition-related Intangible Assets, Net of Tax
Other (Income) Expense, Net (d)
Income Tax (Benefit) Provision (e)
Loss from Discontinued Operations, Net of Tax
Adjusted Net Income
336.2
13.2
1.3
21.5
192.0
(9.8)
(63.3)
4.6
495.7
GAAP Diluted EPS
GAAP Diluted EPS Growth
Cost of Revenues Charges, Net of Tax (a)
Selling, General and Administrative Costs, Net of Tax (b)
Restructuring and Other Costs (Income), Net of Tax (c)
Amortization of Acquisition-related Intangible Assets, Net of Tax
Other (Income) Expense, Net of Tax (d)
Income Tax (Benefit) Provision (e)
Loss from Discontinued Operations, Net of Tax
Adjusted Diluted EPS
Adjusted Diluted EPS Growth
0.93
Reconciliation of Free Cash Flow
GAAP Net Cash Provided by Operating Activities
Net Cash Used in Discontinued Operations
Purchases of Property, Plant, and Equipment
Proceeds from Sale of Property, Plant and Equipment
Free Cash Flow
Q2-13
%
0.6%
11.1%
11.7%
$
2.4
86.3
88.7
0.9%
14.7%
15.6%
277.4
13.1
22.6
21.5
191.2
39.0
(86.3)
0.2
478.7
0.03
0.00
0.04
0.38
(0.02)
0.00
0.01
1.37
$
1.3
85.2
86.5
0.02
0.05
0.04
0.38
0.07
0.00
0.00
1.32
$
34.6
65.9
100.5
Q1-14
%
9.2%
6.7%
15.9%
342.1
1.4
25.6
23.3
188.9
14.0
(65.9)
0.9
530.3
0.00
0.05
0.02
0.35
0.03
(0.01)
0.00
1.30
231.3
(115.0)
116.3
9%
29.9%
-13.9%
16.0%
$
(42.0)
158.0
116.0
-17.8%
32.1%
14.3%
$
69.3
50.7
120.0
0.29
0.02
0.09
0.64
0.00
(0.01)
0.00
1.72
$
(66.9)
189.6
122.7
1.49
(0.04)
0.02
0.00
0.57
(0.01)
0.00
0.00
1.71
62%
(0.03)
0.02
0.02
0.47
0.00
0.01
0.01
1.99
32%
676.0
1.6
(90.7)
7.0
593.9
%
-12.5%
25.7%
13.2%
601.2
0.9
12.7
33.7
339.3
3.7
(189.6)
2.8
804.7
36%
30%
888.7
0.9
(75.5)
9.3
823.4
12.9%
1.9%
14.8%
1.17
-9%
12%
Q4-14
%
471.6
2.1
20.3
(110.6)
362.9
(3.6)
(50.7)
(1.7)
690.3
0.69
0.34
0.17
(0.92)
0.59
0.00
(0.01)
0.00
1.53
101.2
1.0
(104.7)
3.4
0.9
Q3-14
%
278.5
156.1
14.9
60.9
343.6
(0.9)
(158.0)
0.0
695.1
46%
5%
728.5
1.6
(94.5)
4.8
640.4
Q2-14
%
1.36
-12%
0.00
0.06
0.05
0.35
0.02
0.03
0.00
1.43
505.5
1.6
(56.3)
12.3
463.1
$
543.1
168.5
82.8
(582.2)
285.9
(2.3)
115.0
0.0
610.8
0.92
9%
8%
478.4
0.9
(65.6)
0.6
414.3
0.4%
14.9%
15.3%
0.86
21%
17%
Q4-13
%
317.6
0.9
24.0
11.4
191.0
17.2
(85.2)
0.1
477.0
0.76
24%
298.3
0.8
(66.0)
3.0
236.1
Q3-13
%
39%
953.7
0.8
(156.7)
29.6
827.4
(a) The excluded items from cost of revenues include inventory charges, principally for the sale of inventories revalued at the date of acquisition, and accelerated depreciation on assets to be abandoned as a result of real estate consolidation; and in Q1 2014, charges to conform the accounting policies of Life Technologies with the company's accounting
policies.
(b) The excluded items from selling, general and administrative costs include significant acquisition transaction costs and revisions of estimated contingent consideration for recent acquisitions; in Q3 2013 and Q3 2014, charges associated with product liability litigation; and in Q1 2014, charges to conform the accounting policies of Life Technologies with
the company's accounting policies.
(c) Restructuring and other costs (income) consist principally of severance and retention costs; abandoned facility and other expenses of real estate consolidation; material impairments; and significant gains and losses on litigation-related matters, curtailments/settlements of pension plans, and the sale of businesses, product lines and property.
(d) The excluded items from other (income) expense, net, represent amortization of acquisition-related intangible assets and restructuring charges of the company's equity investments; gains and losses on equity and available-for-sale investments; in Q1 2013, realized gains on available-for-sale investments irrevocably contributed to the company's U.K.
pension plans; and in Q2 2013, Q3 2013, Q4 2013 and Q1 2014, charges related to amortization of fees paid to obtain bridge financing commitments related to the Life Technologies acquisition.
(e) The excluded items from income tax benefit/provision include the tax benefits/provisions related to the above excluded items, benefit from tax credit carryforwards, the impact of the resolution of significant tax audits and the tax benefit from adjusting the company's deferred tax balances as a result of tax rate changes.
Page 4 of 12
Free Cash Flow, Return on Invested Capital and Return on
Equity
(Dollars in millions)
2009
2010
2011
2012
2013
2014
Reconciliation of Free Cash Flow
GAAP Net Cash Provided by Operating Activities
Net Cash (Provided by) Used in Discontinued Operations
Purchases of Property, Plant, and Equipment
Proceeds from Sale of Property, Plant and Equipment
Free Cash Flow
1,659.2
(61.8)
(197.5)
13.3
1,413.2
1,497.8
(47.7)
(245.4)
10.2
1,214.9
1,691.0
(14.4)
(260.9)
8.2
1,423.9
2,039.5
28.4
(315.1)
12.8
1,765.6
2,010.7
4.9
(282.4)
20.7
1,753.9
2,619.6
4.3
(427.6)
49.3
2,245.6
GAAP Return on Invested Capital (ROIC)
Cost of Revenues Charges (a)
Selling, General and Administrative Costs (b)
Restructuring and Other Costs (Income), Net (c)
Amortization of Acquisition-related Intangible Assets
Loss on Extinguishment of Debt Facilities
Net Interest Expense
Other Expense (Income) (d)
Income Tax Benefit (e)
(Income) Loss from Discontinued Operations, Net of Tax
Adjusted ROIC
5.6%
0.0%
0.0%
0.4%
3.8%
0.1%
0.7%
0.0%
-1.7%
-0.2%
8.7%
6.5%
0.1%
0.0%
0.4%
3.5%
0.1%
0.4%
0.1%
-1.6%
-0.2%
9.3%
7.1%
0.4%
0.3%
0.5%
3.5%
0.0%
0.7%
-0.2%
-1.4%
-1.7%
9.2%
5.5%
0.3%
0.1%
0.4%
3.5%
0.0%
0.8%
0.0%
-1.7%
0.4%
9.3%
5.9%
0.1%
0.3%
0.4%
3.5%
0.0%
1.0%
0.3%
-1.4%
0.0%
10.1%
5.9%
1.0%
0.4%
-1.8%
4.1%
0.0%
0.8%
0.0%
-0.9%
0.0%
9.5%
GAAP Return on Equity (ROE)
Cost of Revenues Charges (a)
Selling, General and Administrative Costs (b)
Restructuring and Other Costs (Income), Net (c)
Amortization of Acquisition-related Intangible Assets
Loss on Extinguishment of Debt Facilities
Net Interest Expense
Other Expense (Income) (d)
Income Tax Benefit (e)
(Income) Loss from Discontinued Operations, Net of Tax
Adjusted ROE
5.6%
0.0%
0.0%
0.4%
3.8%
0.1%
0.6%
0.0%
-1.5%
-0.2%
8.8%
6.7%
0.1%
0.0%
0.4%
3.6%
0.1%
0.5%
0.1%
-1.6%
-0.3%
9.6%
8.7%
0.5%
0.4%
0.7%
4.2%
0.0%
0.7%
-0.2%
-1.8%
-2.0%
11.2%
7.7%
0.4%
0.1%
0.6%
4.9%
0.0%
1.2%
0.0%
-2.3%
0.5%
13.1%
7.9%
0.2%
0.5%
0.5%
4.8%
0.0%
1.2%
0.4%
-1.9%
0.0%
13.6%
9.5%
1.7%
0.7%
-3.0%
6.7%
0.0%
1.3%
0.0%
-1.4%
0.0%
15.5%
Definitions:
Invested capital is equity plus short-term and long-term debt and net liabilities of discontinued operations less cash and short-term investments.
Adjusted return on invested capital is annual adjusted net income excluding net interest expense, net of tax benefit therefrom, divided by trailing five quarters average invested capital.
Adjusted return on equity is annual adjusted net income excluding net interest expense, net of tax benefit therefrom, divided by trailing five quarters average shareholders equity.
(a) The excluded items from cost of revenues include inventory charges, principally for the sale of inventories revalued at the date of acquisition and accelerated depreciation on assets to be abandoned as a result of real
estate consolidation; and in 2014, charges to conform the accounting policies of Life Technologies with the company's accounting policies.
(b) The excluded items from selling, general and administrative costs include significant acquisition transaction costs and revisions of estimated contingent consideration for recent acquisitions; in 2009, 2010 and 2012
gains due to settlement of certain product liability-related matters; in 2011, 2012, 2013 and 2014, charges associated with product liability litigation; and in 2014, charges to conform the accounting policies of Life
Technologies with the company's accounting policies.
(c) Restructuring and other costs/income consist principally of severance and retention costs; abandoned facility and other expenses of real estate consolidation; material impairments; and significant gains and losses on
litigation-related matters, curtailments/settlements of pension plans, and the sale of businesses, product lines and property.
(d) The excluded items from other expense/income, net, represent amortization of acquisition-related intangible assets and restructuring charges of the company's equity investments; in 2009, 2010 and 2012, losses on
the extinguishment of debt facilities; in 2009 and 2014 losses from other-than-temporary declines in fair market value of investments; in 2010, 2011 and 2013, costs to obtain short-term financing commitments related to
acquisitions; in 2011, 2013 and 2014, gains on available-for-sale and equity investments; and in 2013, realized gains on available-for-sale investments irrevocably contributed to the company's U.K. pension plans.
(e) The excluded items from income tax benefit include the tax benefits/provisions related to the above excluded items, benefit from tax credit carryforwards, the impact of the resolution of significant tax audits and the tax
benefit from adjusting the company's deferred tax balances as a result of tax rate changes.
Page 5 of 12
Recast Segment Data - Thermo Fisher Stand-alone
(Dollars in millions)
Q1-12
Q2-12
Q3-12
Q4-12
2012
Q1-13
Q2-13
Q3-13
Q4-13
2013
Life Sciences Solutions Segment
Revenues
Total Revenue Growth
Acquisitions net of Divestitures
Currency Translation
Organic Revenue Growth
161.4
6%
0%
-1%
7%
165.5
7%
0%
-2%
9%
164.2
8%
0%
-3%
11%
167.7
12%
0%
-1%
13%
658.8
8%
0%
-2%
10%
172.6
7%
0%
-1%
8%
181.0
9%
0%
-1%
10%
167.2
2%
0%
0%
1% †
191.7
14%
0%
0%
14%
712.5
8%
0%
0%
8%
41.6
25.8%
+5.4 pts
36.8
22.2%
-0.3 pts
37.3
22.7%
-0.7 pts
39.1
23.3%
+2.3 pts
154.8
23.5%
+1.7 pts
41.0
23.8%
-2.0 pts
43.5
24.0%
+1.8 pts
38.9
23.3%
+0.6 pts
46.3
24.2%
+0.9 pts
169.7
23.8%
+0.3 pts
755.9
745.6
760.8
-1%
0%
-3%
2%
852.4
1%
0%
-1%
1% †
740.1
-2%
1%
-1%
-1% †
761.0
2%
0%
-1%
2% †
765.4
1%
0%
-1%
1% †
887.7
4%
0%
0%
4%
120.5
16.3%
-0.7 pts
125.3
16.5%
+0.5 pts
131.0
17.1%
-1.1 pts
181.9
20.5%
+0.7 pts
805.6
10%
7%
-1%
4%
793.6
8%
7%
0%
2% †
759.3
8%
6%
0%
1% †
833.2
5%
0%
0%
5%
222.9
27.7%
+2.5 pts
216.3
27.3%
+0.1 pts
204.2
26.9%
+2.9 pts
220.3
26.4%
+0.5 pts
Operating Income
Operating Income Margin
Operating Income Margin Expansion
Analytical Instruments Segment
Revenues
Total Revenue Growth
Acquisitions net of Divestitures
Currency Translation
Organic Revenue Growth
Pro Forma Revenue Growth*
Acquisitions net of Divestitures
Currency Translation
Pro Forma Organic Revenue Growth*
Operating Income
Operating Income Margin
Operating Income Margin Expansion
Specialty Diagnostics Segment
Revenues
Total Revenue Growth
Acquisitions net of Divestitures
Currency Translation
Organic Revenue Growth
Pro Forma Revenue Growth**
Acquisitions net of Divestitures
Currency Translation
Pro Forma Organic Revenue Growth**
Operating Income
Operating Income Margin
Operating Income Margin Expansion
Laboratory Products & Services Segment
Revenues
Total Revenue Growth
Acquisitions net of Divestitures
Currency Translation
Organic Revenue Growth
Operating Income
Operating Income Margin
Operating Income Margin Expansion
7%
0%
-1%
8%
1%
0%
-4%
4% †
119.4
16.0%
-0.7 pts
138.1
18.2%
-0.2 pts
168.6
19.8%
-1.4 pts
732.3
731.7
706.3
791.2
12%
7%
-1%
6%
1%
2%
-4%
3%
2%
1%
-3%
4%
184.9
25.2%
+0.8 pts
1,488.1
4%
0%
-1%
4% †
221.5
14.9%
-0.2 pts
199.1
27.2%
+4.0 pts
1,547.3
2%
1%
-3%
4%
234.8
15.2%
+0.2 pts
3,154.2
1%
0%
-1%
2%
2%
0%
-2%
4%
128.5
17.0%
+1.6 pts
1%
2%
-1%
1% †
3,114.7
554.6
17.8%
-0.4 pts
2,961.5
558.7
17.7%
-0.1 pts
3,191.7
8%
5%
0%
3%
4%
3%
-2%
4% †
169.5
24.0%
-0.7 pts
1,537.7
5%
2%
-2%
5%
204.6
25.9%
+1.8 pts
1,529.7
4%
2%
0%
3% †
230.8
15.0%
+0.2 pts
225.3
14.7%
+0.1 pts
758.1
25.6%
+1.5 pts
6,102.8
4%
1%
-2%
4% †
912.4
15.0%
+0.1 pts
1,556.3
5%
2%
0%
3%
230.7
14.8%
-0.1 pts
1,595.0
3%
1%
0%
3% †
238.7
15.0%
-0.2 pts
1,594.7
4%
0%
0%
4%
245.3
15.4%
+0.4 pts
1,652.8
8%
0%
0%
8%
245.7
14.9%
+0.2 pts
863.7
27.1%
+1.5 pts
6,398.8
5%
1%
0%
4%
960.4
15.0%
+0.0 pts
* Pro forma results include the pre-acquisition results of Dionex from the beginning of the second quarter 2011.
** Pro forma results include the pre-acquisition results of Phadia from the beginning of the third quarter 2011.
† Results do not sum due to rounding.
Note: All prior period segment data has been adjusted to reflect the Q1 2014 transfer of businesses between segments. These transfers did not change our consolidated results.
Note: Recast segment data reflects Thermo Fisher stand-alone and does not include Life Technologies. The results of the Life Sciences Solutions Segment reflected above include, among other businesses, the sera and media, gene
modulation and magnetic beads businesses which were sold on March 21, 2014. Revenues of these businesses in 2013 were approximately $250 million.
Page 6 of 12
Segment Data
(Dollars in millions)
Q1-14
Q2-14
Q3-14
Q4-14
2014
Life Sciences Solutions Segment
Revenues
Pro Forma Revenue Growth*
Acquisitions net of Divestitures
Currency Translation
Pro Forma Organic Revenue Growth*
835.5
0%
0%
0%
1% †
1,103.1
-1%
-4%
1%
3% †
1,071.9
-2%
-4%
0%
3% †
1,185.2
-2%
-5%
-4%
7%
4,195.7
-1%
-3%
-1%
4% †
Operating Income
Operating Income Margin
Operating Income Margin Expansion
244.6
29.3%
+5.5 pts
299.1
27.1%
+3.1 pts
306.3
28.6%
+5.3 pts
364.9
30.8%
+6.6 pts
1,214.9
29.0%
+5.2 pts
769.9
4%
0%
0%
4%
793.4
4%
1%
1%
3% †
786.5
3%
0%
0%
3%
902.4
2%
1%
-4%
5%
3,252.2
3%
0%
-1%
4%
130.9
17.0%
+0.7 pts
130.4
16.4%
-0.1 pts
137.8
17.5%
+0.4 pts
182.0
20.2%
-0.3 pts
581.1
17.9%
+0.2 pts
813.7
1%
0%
0%
0% †
855.1
8%
0%
1%
6% †
811.8
7%
0%
0%
6% †
863.0
4%
0%
-3%
7%
3,343.6
5%
0%
0%
5%
221.0
27.2%
-0.5 pts
236.4
27.6%
+0.3 pts
224.3
27.6%
+0.7 pts
234.3
27.1%
+0.7 pts
916.0
27.4%
+0.3 pts
1,590.5
2%
0%
0%
2%
1,699.4
7%
0%
1%
6%
1,628.7
2%
-2%
0%
4%
1,682.9
2%
-4%
-2%
8%
6,601.5
3%
-2%
0%
5%
234.0
14.7%
-0.1 pts
257.7
15.2%
+0.2 pts
246.6
15.1%
-0.3 pts
244.5
14.5%
-0.4 pts
982.8
14.9%
-0.1 pts
Analytical Instruments Segment
Revenues
Total Revenue Growth
Acquisitions net of Divestitures
Currency Translation
Organic Revenue Growth
Operating Income
Operating Income Margin
Operating Income Margin Expansion
Specialty Diagnostics Segment
Revenues
Total Revenue Growth
Acquisitions net of Divestitures
Currency Translation
Organic Revenue Growth
Operating Income
Operating Income Margin
Operating Income Margin Expansion
Laboratory Products & Services Segment
Revenues
Total Revenue Growth
Acquisitions net of Divestitures
Currency Translation
Organic Revenue Growth
Operating Income
Operating Income Margin
Operating Income Margin Expansion
* Life Technologies was acquired on February 3, 2014. Pro forma results include the pre-acquisition results of Life Technologies from the beginning of the first quarter 2013.
† Results do not sum due to rounding.
Page 7 of 12
Balance Sheet and Leverage Ratios
(Dollars in millions)
12/31/2011
Assets
Current Assets:
Cash and cash equivalents
Short-term investments
Accounts receivable, net
Inventories
Other current assets
12/31/2012
12/31/2013
3/29/2014
6/28/2014
9/27/2014
12/31/2014
1,016.3
4.3
1,763.7
1,330.1
707.5
805.6
4.3
1,804.9
1,443.3
776.7
5,826.0
4.5
1,942.3
1,494.5
613.4
1,497.2
25.5
2,695.5
2,060.5
1,027.4
584.9
21.0
2,660.1
1,933.8
744.6
534.3
9.3
2,507.1
1,913.7
755.5
1,343.5
8.5
2,473.6
1,859.5
716.4
4,821.9
4,834.8
9,880.7
7,306.1
5,944.4
5,719.9
6,401.5
1,611.3
7,815.9
611.3
11,973.3
1,726.4
7,804.5
604.4
12,474.5
1,767.4
7,071.3
640.7
12,503.3
2,488.7
15,976.4
833.0
19,529.5
2,472.0
15,621.6
836.1
19,439.3
2,406.1
14,698.3
819.7
19,046.8
2,426.5
14,110.1
858.7
18,842.6
26,833.7
27,444.6
31,863.4
46,133.7
44,313.4
42,690.8
42,639.4
1,272.8
612.3
1,228.0
93.1
641.4
1,358.8
987.7
691.5
1,446.8
2,165.7
828.8
2,397.0
3,075.1
849.9
2,310.6
3,088.5
818.1
2,315.5
2,212.4
820.7
2,371.4
Total Current Liabilities
3,113.1
2,093.3
3,126.0
5,391.5
6,235.6
6,222.1
5,404.5
Other Long-term Liabilities
Long-term Obligations
2,927.3
5,755.2
2,855.4
7,031.2
2,381.7
9,499.6
5,114.7
15,196.9
4,917.2
12,502.0
4,569.5
11,388.6
4,335.2
12,351.6
15,038.1
15,464.7
16,856.1
20,430.6
20,658.6
20,510.6
20,548.1
26,833.7
27,444.6
31,863.4
46,133.7
44,313.4
42,690.8
42,639.4
Total Current Assets
Property, Plant and Equipment, Net
Acquisition-related Intangible Assets
Other Assets
Goodwill
Liabilities and Shareholders' Equity
Current Liabilities:
Short-term obligations and current maturities of long-term obligations
Accounts payable
Other current liabilities
Total Shareholders' Equity
Leverage Ratios
Total Debt / TTM EBITDA
Effect of Adjusted Items
Total Debt / Adjusted TTM EBITDA(a)
Net Debt(b) / TTM EBITDA
Effect of Adjusted Items
Net Debt(b) / Adjusted TTM EBITDA(a)
(a)
(b)
3.3X
-0.3X
2.9X
-0.2X
4.0X
-0.2X
5.4X
0.3X
4.6X
0.0X
3.8X
0.1X
3.5X
0.1X
3.0X
2.7X
3.8X
5.7X
4.6X
3.9X
3.6X
2.8X
-0.2X
2.6X
-0.2X
1.8X
-0.1X
4.9X
0.3X
4.4X
0.1X
3.6X
0.2X
3.2X
0.1X
2.6X
2.4X
1.7X
5.2X
4.5X
3.8X
3.3X
Adjusted EBITDA equals adjusted operating income excluding depreciation.
Net debt is short-term and long-term debt less cash and short-term investments.
Page 8 of 12
Debt
(Dollars in millions)
Effective
Interest Rate
at 12/31/2014
Maturity
Date
12/31/2011
12/31/2012
12/31/2013
3/29/2014
6/28/2014
9/27/2014
12/31/2014
Short-term
(a)
12/28/2012
354
0
0
0
0
0
0
TMO 2.05% Senior Notes (a)
2/21/2014
0
0
300
0
0
0
0
TMO 3.25% Senior Notes (a)
11/20/2014
0
0
406
404
403
401
0
TMO 2.15% Senior Notes
Life Technologies 4.40% Senior Notes
0.56%
3/1/2015
0
0
0
517
512
508
503
TMO 3.20% Senior Notes (a)
1.55%
5/1/2015
0
0
0
0
456
454
452
TMO 5% Senior Notes
5.12%
6/1/2015
0
0
0
0
250
250
250
Term Loan
1.63%
0
0
0
750
875
1,000
1,000
Commercial Paper
0.00%
900
50
250
459
556
463
0
19
43
32
36
23
12
7
1,273
93
988
2,166
3,075
3,088
2,212
0
Other
Total Short-term
Long-term
TMO 2.05% Senior Notes (a)
TMO 3.25% Senior Notes
(a)
TMO 3.20% Senior Notes (a)
TMO 5% Senior Notes
Life Technologies 3.50% Senior Notes
1.04%
2/21/2014
306
303
0
0
0
0
11/20/2014
419
413
0
0
0
0
0
5/1/2015
474
467
460
458
0
0
0
6/1/2015
250
250
250
250
0
0
0
1/15/2016
0
0
0
417
415
413
410
TMO 3.20% Senior Notes
3.21%
3/1/2016
900
900
900
900
900
900
900
TMO 2.25% Senior Notes
2.29%
8/15/2016
998
999
999
999
999
999
999
TMO 1.30% Senior Notes (c)
1.00%
2/1/2017
0
0
896
894
898
896
897
TMO 1.85% Senior Notes
1.85%
1/15/2018
0
500
500
500
500
500
500
TMO 2.40% Senior Notes
2.44%
2/1/2019
0
0
898
898
898
898
898
Life Technologies 6.00% Senior Notes
2.98%
3/1/2020
0
0
0
872
867
863
858
TMO 4.70% Senior Notes
4.70%
5/1/2020
300
300
300
300
300
300
300
Life Technologies 5.00% Senior Notes
3.25%
1/15/2021
0
0
0
442
441
440
438
TMO 4.50% Senior Notes
4.58%
3/1/2021
994
994
995
995
995
995
996
TMO 3.60% Senior Notes
4.29%
8/15/2021
1,098
1,098
1,098
1,098
1,099
1,098
1,098
TMO 3.30% Senior Notes
3.30%
2/15/2022
0
0
0
0
0
0
800
TMO 3.15% Senior Notes
3.21%
1/15/2023
0
796
796
796
797
797
797
TMO 4.15% Senior Notes
4.07%
2/1/2024
0
0
997
997
997
997
998
TMO 2.00% Senior Notes
2.03%
4/15/2025
0
0
0
0
0
0
772
TMO 5.30% Senior Notes
5.30%
2/1/2044
0
0
400
400
400
400
400
Term Loan
1.63%
0
0
0
3,950
1,975
875
275
Other
16
11
11
31
21
18
16
5,755
7,031
9,500
15,197
12,502
11,389
12,352
Total Debt
7,028
7,124
10,488
17,363
15,577
14,477
14,564
Total Cash and Short-term Investments
1,021
810
5,831
1,523
606
544
1,352
6,007
6,314
4,657
15,840
14,971
13,933
13,212
Total Long-term
Net Debt(b)
(a)
Previously, fixed rate interest had been swapped to variable rate. In August 2011, the company terminated its fixed to floating rate swap arrangements.
Net debt is short-term and long-term debt less cash and short-term investments.
(c)
Fixed rate interest has been swapped to variable rate.
(b)
Page 9 of 12
2011 - 2014 Publicly Announced Acquisitions/Divestitures
Transaction
Closing Date
Entity
Acquisition or
Divestiture
Business Description
(a)
Principal
Segment
Revenue
($ millions)
2014
August 15
Cole-Parmer
Divestiture
Customer channel business providing fluid handling, test and
measurement, and electrochemistry products and services
LPS
$232
March 21
Select businesses within
Biosciences portfolio
Divestiture
Sera and media, gene modulation and magnetic beads
businesses formerly in the Analytical Technologies Segment
LSS
$250
February 3
Life Technologies
Acquisition
Global leader in life sciences
LSS
$3,872
2013
There were no publicly announced acquisitions or divestitures that closed in 2013.
2012
September 13
One Lambda
Acquisition
Global leader in transplant diagnostics
SDS
$182
July 24
Princeton Security
Technologies, Inc
Acquisition
Manufacturer and supplier of radioactive isotope identifiers, x-ray
and gamma-ray detectors and spectroscopy systems
AIS
$5
May 1
Doe & Ingalls
Acquisition
Premium provider of specialty production chemicals and
customized supply-chain services
LPS
$110
August 23
Phadia
Acquisition
Global leader in allergy and autoimmunity clinical diagnostics
SDS
July 18
TREK Diagnostic Systems
Acquisition
Global provider of microbiology solutions
SDS
$34
May 18
Sterilin
Acquisition
Manufacturer and supplier of single-use plastic products
LPS
$35
May 13
Dionex
Acquisition
Manufacturer of liquid and ion chromatography systems
AIS
$460
April 4
Athena Diagnostics
Divestiture
Reference lab for diagnostic testing of neurological diseases
SDS
$110
April 4
Lancaster Labs
Divestiture
Contract lab providing comprehensive analytical services
LPS
$115
2011
(a)
(b)
Approximate revenue from prior full year reporting period as of the announcement date
Approximate US Dollar value based on exchange rate at the time of acquisition announcement
Page 10 of 12
(b)
$525 (€367)
Capital Deployment
Share Buybacks
2011
2012
2013
2014
24.5
20.8
1.3
0.0
Average Price Paid per Share
$54.68
$55.18
$69.89
$0.00
Total Spend ($ millions)
$1,337
$1,150
$90
$0
Total Number of Shares Purchased
(millions)
Remaining Authorization (in millions) as of 12/31/2014: $910
Dividends Paid
Amount per Share(1)
2012
2013
2014
$0.39
$0.60
$0.60
(1)
On February 29, 2012, the company initiated a quarterly dividend of $0.13 per share. On November 8, 2012, the company increased the dividend to
$0.15 per share. Future declarations of dividends are subject to board approval and may be adjusted as business needs or market conditions change.
Page 11 of 12
Fi
Fiscal Calendar
2014 FISCAL CALENDAR
Month
JAN
S
M
FIRST QUARTER
T
W T
F
S
Week
1
2
3
4
1
Month
THIRD QUARTER
T
W T
F
S
M
S
Week
29
30
1
2
3
4
5
27
6
7
8
9
10
11
12
28
16
17
18
19
29
Month
M
FIRST QUARTER
T
W T
F
S
Week
1
2
3
1
11
28
5 Weeks 12
13
14
15
16
17
18
29
14
15
19
20
21
22
23
24
25
4
20
21
22
23
24
25
26
30
18
19
20
21
22
23
24
4
19
20
21
22
23
24
25
30
26
27
28
29
30
31
1
5
27
28
29
30
31
1
2
31
25
26
27
28
29
30
31
5
26
27
28
29
30
31
1
31
AUG
3
4
5
6
7
8
9
32
10
11
12
13
14
15
16
33
3
10
5 Weeks 13
6
17
9
3
7
16
8
18
8
15
7
17
15
14
6
16
7
13
27
5
15
14
12
4
14
6
5 Weeks 11
3
13
13
2
2
5 Weeks 12
5
10
1
2
12
9
30
11
4
8
Week
29
10
11
7
S
28
9
3
6
M
8
10
5
THIRD QUARTER
T
W T
F
S
7
9
4
Month
6
2
JAN
S
5
FEB
JULY
2015 FISCAL CALENDAR
FEB
1
2
3
4
5
6
7
6
8
9
10
11
12
13
14
7
JULY
AUG
2
3
4
5
6
7
8
32
9
10
11
12
13
14
15
33
34
4 Weeks 16
17
18
19
20
21
22
8
4 Weeks 17
18
19
20
21
22
23
34
4 Weeks 15
16
17
18
19
20
21
8
4 Weeks 16
17
18
19
20
21
22
23
24
25
26
27
28
1
9
24
25
26
27
28
29
30
35
22
23
24
25
26
27
28
9
23
24
25
26
27
28
29
35
2
3
4
5
6
7
8
10
31
1
2
3
4
5
6
36
1
2
3
4
5
6
7
10
30
31
1
2
3
4
5
36
9
10
11
12
13
14
15
11
7
8
9
10
11
12
13
37
MARCH
8
9
10
11
12
13
14
11
6
7
8
9
10
11
12
37
4 Weeks 16
MARCH
17
18
19
20
21
22
12
4 Weeks 14
SEPT
15
16
17
18
19
20
38
4 Weeks 15
16
17
18
19
20
21
12
4 Weeks 13
14
15
16
17
18
19
38
23
24
25
26
27
28
29
13
21
22
23
24
25
26
27
39
22
23
24
25
26
27
28
13
20
21
22
23
24
25
26
39
40
SECOND QUARTER
FOURTH QUARTER
30
31
1
2
3
4
5
14
6
7
8
9
10
11
12
15
5 Weeks 13
14
15
16
17
18
19
16
20
21
22
23
24
25
26
17
19
20
21
22
27
28
29
30
1
2
3
18
26
27
28
29
APRIL
4
5
6
7
8
9
10
19
11
12
13
14
15
16
17
20
4 Weeks 18
19
20
21
22
23
24
21
25
26
27
28
29
30
31
1
2
3
4
5
6
7
MAY
JUNE
SECOND QUARTER
28
29
30
1
2
3
4
40
5
6
7
8
9
10
11
41
5 Weeks 12
13
14
15
16
17
18
42
23
24
25
43
19
20
21
30
31
1
44
26
27
28
OCT
2
3
4
5
6
7
8
45
9
10
11
12
13
14
15
46
4 Weeks 16
17
18
19
20
21
22
47
22
23
24
25
26
27
28
29
23
30
1
2
3
4
5
6
8
9
10
11
12
13
14
24
4 Weeks 15
16
17
18
19
20
21
25
22
23
24
25
26
27
28
26
NOV
DEC
FOURTH QUARTER
29
30
31
1
2
3
4
14
5
6
7
8
9
10
11
15
5 Weeks 12
13
14
15
16
17
18
16
22
23
24
25
17
18
19
20
21
22
23
24
43
29
30
1
2
18
25
26
27
28
29
30
31
44
1
2
3
4
5
6
7
45
8
9
10
11
12
13
14
46
4 Weeks 15
16
17
18
19
20
21
47
APRIL
10
41
5 Weeks 11
12
13
14
15
16
17
42
6
7
8
9
19
14
15
16
20
4 Weeks 17
18
19
20
21
22
23
21
48
24
25
26
27
28
29
30
22
22
23
24
25
26
27
28
48
49
31
1
2
3
4
5
6
23
29
30
1
2
3
4
5
49
10
11
12
13
50
7
8
9
10
11
12
13
24
18
19
20
51
4 Weeks 14
15
16
17
18
19
20
25
25
26
27
52
21
22
23
24
25
26
27
26
24
3
9
13
17
31
2
8
5
9
23
1
7
12
16
30
30
6
4
8
22
29
5
11
15
29
28
4
3
7
21
27
OCT
10
MAY
4 Weeks 14
28
SEPT
JUNE
Page 12 of 12
NOV
6
7
8
9
10
11
12
50
5 Weeks 13
DEC
14
15
16
17
18
19
51
25
26
52
20
21
22
23
24
27
28
29
30
31