filings.toolsItem 6. Selected Financial Data
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Item 6. Selected Financial Data
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The following financial information for the five years ended December 31, 2017, has been derived from the Company’s consolidated financial statements. This information should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations and the consolidated financial statements and related notes thereto included elsewhere in this Annual Report on Form 10-K.
| 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
| (In millions, except per share amounts) | ||||||||||||||||||||
| Consolidated Operating Results (Year Ended December 31): | ||||||||||||||||||||
| Net sales | $ | 4,300.2 | $ | 3,840.1 | $ | 3,974.3 | $ | 4,022.0 | $ | 3,594.1 | ||||||||||
| Operating income | $ | 915.1 | $ | 801.9 | $ | 907.7 | $ | 898.6 | $ | 815.1 | ||||||||||
| Interest expense | $ | 98.0 | $ | 94.3 | $ | 91.8 | $ | 79.9 | $ | 73.6 | ||||||||||
| Net income | $ | 681.5 | $ | 512.2 | $ | 590.9 | $ | 584.5 | $ | 517.0 | ||||||||||
| Earnings per share: | ||||||||||||||||||||
| Basic | $ | 2.96 | $ | 2.20 | $ | 2.46 | $ | 2.39 | $ | 2.12 | ||||||||||
| Diluted | $ | 2.94 | $ | 2.19 | $ | 2.45 | $ | 2.37 | $ | 2.10 | ||||||||||
| Dividends declared and paid per share | $ | 0.36 | $ | 0.36 | $ | 0.36 | $ | 0.33 | $ | 0.24 | ||||||||||
| Weighted average common shares outstanding: | ||||||||||||||||||||
| Basic | 230.2 | 232.6 | 239.9 | 244.9 | 243.9 | |||||||||||||||
| Diluted | 231.8 | 233.7 | 241.6 | 247.1 | 246.1 | |||||||||||||||
| Performance Measures and Other Data: | ||||||||||||||||||||
| Operating income — Return on net sales | 21.3 | % | 20.9 | % | 22.8 | % | 22.3 | % | 22.7 | % | ||||||||||
| — Return on average total assets | 12.3 | % | 11.7 | % | 13.9 | % | 14.6 | % | 14.7 | % | ||||||||||
| Net income — Return on average total capital | 11.6 | % | 9.5 | % | 11.6 | % | 12.3 | % | 12.1 | % | ||||||||||
| — Return on average stockholders’ equity | 18.7 | % | 15.7 | % | 18.2 | % | 18.3 | % | 18.2 | % | ||||||||||
| EBITDA(1) | $ | 1,076.0 | $ | 966.0 | $ | 1,046.9 | $ | 1,022.6 | $ | 916.3 | ||||||||||
| Ratio of EBITDA to interest expense(1) | 11.0x | 10.2x | 11.4x | 12.8x | 12.4x | |||||||||||||||
| Depreciation and amortization | $ | 183.2 | $ | 179.7 | $ | 149.5 | $ | 138.6 | $ | 118.7 | ||||||||||
| Capital expenditures | $ | 75.1 | $ | 63.3 | $ | 69.1 | $ | 71.3 | $ | 63.3 | ||||||||||
| Cash provided by operating activities | $ | 833.3 | $ | 756.8 | $ | 672.5 | $ | 726.0 | $ | 660.7 | ||||||||||
| Free cash flow(2) | $ | 758.2 | $ | 693.5 | $ | 603.4 | $ | 654.7 | $ | 597.4 | ||||||||||
| Consolidated Financial Position (At December 31): | ||||||||||||||||||||
| Current assets | $ | 1,934.7 | $ | 1,928.2 | $ | 1,618.8 | $ | 1,577.6 | $ | 1,368.3 | ||||||||||
| Current liabilities | $ | 1,138.7 | $ | 924.4 | $ | 1,024.0 | $ | 934.5 | $ | 872.7 | ||||||||||
| Property, plant and equipment, net | $ | 493.3 | $ | 473.2 | $ | 484.5 | $ | 448.4 | $ | 402.8 | ||||||||||
| Total assets | $ | 7,796.1 | $ | 7,100.7 | $ | 6,660.5 | $ | 6,415.9 | $ | 5,874.4 | ||||||||||
| Long-term debt, net | $ | 1,866.2 | $ | 2,062.6 | $ | 1,553.1 | $ | 1,424.4 | $ | 1,140.1 | ||||||||||
| Total debt, net | $ | 2,174.3 | $ | 2,341.6 | $ | 1,938.0 | $ | 1,709.0 | $ | 1,411.5 | ||||||||||
| Stockholders’ equity | $ | 4,027.6 | $ | 3,256.5 | $ | 3,254.6 | $ | 3,239.6 | $ | 3,136.1 | ||||||||||
| Stockholders’ equity per share | $ | 17.42 | $ | 14.20 | $ | 13.82 | $ | 13.42 | $ | 12.80 | ||||||||||
| Total debt as a percentage of capitalization | 35.1 | % | 41.8 | % | 37.3 | % | 34.5 | % | 31.0 | % | ||||||||||
| Net debt as a percentage of capitalization(3) | 27.5 | % | 33.3 | % | 32.4 | % | 29.1 | % | 26.3 | % |
See Notes to Selected Financial Data on the following page.
Table of Contents
Notes to Selected Financial Data
| (1) | EBITDA represents earnings before interest, income taxes, depreciation and amortization. EBITDA is presented because the Company is aware that it is used by rating agencies, securities analysts, investors and other parties in evaluating the Company. It should not be considered, however, as an alternative to operating income as an indicator of the Company’s operating performance or as an alternative to cash flows as a measure of the Company’s overall liquidity as presented in the Company’s consolidated financial statements. Furthermore, EBITDA measures shown for the Company may not be comparable to similarly titled measures used by other companies. The following table presents the reconciliation of net income reported in accordance with U.S. generally accepted accounting principles (“GAAP”) to EBITDA: |
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| Year Ended December 31, | ||||||||||||||||||||
| 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
| (In millions) | ||||||||||||||||||||
| Net income | $ | 681.5 | $ | 512.2 | $ | 590.9 | $ | 584.5 | $ | 517.0 | ||||||||||
| Add (deduct): | ||||||||||||||||||||
| Interest expense | 98.0 | 94.3 | 91.8 | 79.9 | 73.6 | |||||||||||||||
| Interest income | (2.0 | ) | (1.1 | ) | (0.8 | ) | (0.8 | ) | (0.8 | ) | ||||||||||
| Income taxes | 115.3 | 180.9 | 215.5 | 220.4 | 207.8 | |||||||||||||||
| Depreciation | 82.0 | 74.8 | 68.7 | 63.7 | 57.2 | |||||||||||||||
| Amortization | 101.2 | 104.9 | 80.8 | 74.9 | 61.5 | |||||||||||||||
| Total adjustments | 394.5 | 453.8 | 456.0 | 438.1 | 399.3 | |||||||||||||||
| EBITDA | $ | 1,076.0 | $ | 966.0 | $ | 1,046.9 | $ | 1,022.6 | $ | 916.3 | ||||||||||
| (2) | Free cash flow represents cash flow from operating activities less capital expenditures. Free cash flow is presented because the Company is aware that it is used by rating agencies, securities analysts, investors and other parties in evaluating the Company. (Also see note 1 above). The following table presents the reconciliation of cash flow from operating activities reported in accordance with U.S. GAAP to free cash flow: |
|---|
| Year Ended December 31, | ||||||||||||||||||||
| 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
| (In millions) | ||||||||||||||||||||
| Cash provided by operating activities | $ | 833.3 | $ | 756.8 | $ | 672.5 | $ | 726.0 | $ | 660.7 | ||||||||||
| Deduct: Capital expenditures | (75.1 | ) | (63.3 | ) | (69.1 | ) | (71.3 | ) | (63.3 | ) | ||||||||||
| Free cash flow | $ | 758.2 | $ | 693.5 | $ | 603.4 | $ | 654.7 | $ | 597.4 | ||||||||||
| (3) | Net debt represents total debt, net minus cash and cash equivalents. Net debt is presented because the Company is aware that it is used by rating agencies, securities analysts, investors and other parties in evaluating the Company. (Also see note 1 above). The following table presents the reconciliation of total debt, net reported in accordance with U.S. GAAP to net debt: |
|---|
| December 31, | ||||||||||||||||||||
| 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
| (In millions) | ||||||||||||||||||||
| Total debt, net | $ | 2,174.3 | $ | 2,341.6 | $ | 1,938.0 | $ | 1,709.0 | $ | 1,411.5 | ||||||||||
| Less: Cash and cash equivalents | (646.3 | ) | (717.3 | ) | (381.0 | ) | (377.6 | ) | (295.2 | ) | ||||||||||
| Net debt | 1,528.0 | 1,624.3 | 1,557.0 | 1,331.4 | 1,116.3 | |||||||||||||||
| Stockholders’ equity | 4,027.6 | 3,256.5 | 3,254.6 | 3,239.6 | 3,136.1 | |||||||||||||||
| Capitalization (net debt plus stockholders’ equity) | $ | 5,555.6 | $ | 4,880.8 | $ | 4,811.6 | $ | 4,571.0 | $ | 4,252.4 | ||||||||||
| Net debt as a percentage of capitalization | 27.5 | % | 33.3 | % | 32.4 | % | 29.1 | % | 26.3 | % | ||||||||||
Table of Contents
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