Item 6. SELECTED FINANCIAL DATA

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Item 6. SELECTED FINANCIAL DATA

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(Millions of dollars, except per share)2016(A)2015(A)2014(A)2013(A)2012(A)
Operating Results
Sales$9,524$9,895$10,439$10,180$9,612
Cost of sales6,4036,9397,6307,4707,052
Selling and administrative8499391,0551,063947
Research and development132137140132126
Business restructuring and cost reduction actions3420813232327
Operating income2,1061,7081,3391,3321,282
Equity affiliates’ income149155151168154
Income from continuing operations attributable to Air Products1,5151,2859951,009999
Net income attributable to Air Products6311,2789929941,167
Basic earnings per common share attributable to Air Products:
Income from continuing operations7.005.984.684.814.73
Net income2.925.954.664.745.53
Diluted earnings per common share attributable to Air Products:
Income from continuing operations6.945.914.624.754.66
Net income2.895.884.614.685.44
Year-End Financial Position
Plant and equipment, at cost$20,190$19,463$19,633$19,234$17,965
Total assets(H)18,05517,33517,66817,76116,831
Working capital1,034(851)199100605
Total debt(B)6,2255,8796,1196,2745,292
Redeemable noncontrolling interest——287376393
Air Products shareholders’ equity7,0807,2497,3667,0426,477
Total equity7,2137,3817,5217,1996,623
Financial Ratios
Return on average Air Products shareholders’ equity(C)21.2%17.4%13.5%15.4%16.1%
Operating margin22.1%17.3%12.8%13.1%13.3%
Selling and administrative as a percentage of sales8.9%9.5%10.1%10.4%9.9%
Total debt to total capitalization(B)(D)46.3%44.3%43.9%45.3%43.0%
Other Data
Income from continuing operations including noncontrolling interests$1,546$1,324$996$1,048$1,025
Adjusted EBITDA(E)3,2732,9842,7762,6482,528
Depreciation and amortization926936957907841
Capital expenditures on a GAAP basis(F)1,0561,3041,3611,4592,480
Capital expenditures on a non-GAAP basis(F)1,0831,6781,5641,7082,698
Cash provided by operating activities2,7072,4462,1901,5481,760
Cash used for investing activities9721,2511,3171,4072,356
Cash (used for) provided by financing activities(271)(945)(504)115(78)
Dividends declared per common share3.393.203.022.772.50
Weighted Average Common Shares – Basic (in millions)216215213210211
Weighted Average Common Shares – Diluted (in millions)218217215212215
Book value per common share at year-end$32.57$33.66$34.49$33.35$30.48
Shareholders at year-end6,0006,4006,6007,0007,500
Employees at year-end(G)18,60019,70021,20021,60021,300
Table of Contents
(A)Unless otherwise stated, selected financial data is presented on a GAAP basis. Our operating results were impacted by certain items which management does not believe to be indicative of ongoing business trends and are excluded from the non-GAAP measure. Refer to pages 35-40 for a reconciliation of the GAAP to non-GAAP measures for 2016, 2015, and 2014. Descriptions of the excluded items appear on pages 27-29. For 2013, these items include: (i) a charge to operating income of $232 ($158 after-tax, or $.74 per share) related to business restructuring and cost reduction actions, and (ii) expenses of $10 ($6 after-tax, or $.03 per share) related to advisory costs. For 2012, these items include: (i) a charge to operating income of $327 ($222 after-tax, or $1.03 per share) related to business restructuring and cost reduction actions, (ii) a gain of $86 ($55 after-tax, or $.25 per share) related to the gain on our previously held equity interest in DA NanoMaterials, (iii) a charge of $10 ($6 after-tax, or $.03 per share) related to a customer bankruptcy, (iv) a tax expense of $44 ($.20 per share) for a Spanish tax settlement, and (v) a tax benefit of $58 ($.27 per share) for a favorable Spanish tax ruling.
(B)Total debt includes long-term debt, current portion of long-term debt, and short-term borrowings as of the end of the year.
(C)Calculated using income from continuing operations attributable to Air Products and five-quarter average Air Products shareholders’ equity.
(D)Total capitalization includes total debt plus total equity plus redeemable noncontrolling interest as of the end of the year.
(E)A reconciliation of reported GAAP results to Adjusted EBITDA is presented on pages 37-39.
(F)Capital expenditures on a GAAP basis include additions to plant and equipment, investment in and advances to unconsolidated affiliates, and acquisitions. The Company utilizes a non-GAAP measure in the computation of capital expenditures and includes spending associated with facilities accounted for as capital leases and purchases of noncontrolling interests. Refer to page 42 for a reconciliation of the GAAP to non-GAAP measures for 2016, 2015, and 2014. For 2013, the GAAP measure was adjusted by $235 and $14 for spending associated with facilities accounted for as capital leases and purchases of noncontrolling interests, respectively. For 2012, the GAAP measure was adjusted by $212 and $6 for spending associated with facilities accounted for as capital leases and purchases noncontrolling interests, respectively.
(G)Includes full- and part-time employees from continuing and discontinued operations.
(H)Reflects adoption of guidance on the presentation of deferred income taxes on a retrospective basis. Refer to Note 2, New Accounting Guidance, for additional Information.
Table of Contents

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