Item 6. Selected Financial Data.(1)

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Item 6. Selected Financial Data.(1)



(Dollars in thousands, except per share data)	2013			2012 (2)			2011			2010			2009
RESULTS OF OPERATIONS
Net sales	$	2,024,130		$	1,954,258		$	1,838,451		$	1,513,073		$	1,329,661
Gross profit	873,364			803,700			738,673			618,483			522,386
Selling, general and administrative expenses	477,851			444,490			421,703			358,272			325,453
Asset impairments	—			198,519			—			—			—
Restructuring expenses	—			32,473			12,314			11,095			12,079
Operating income	395,513			128,218			304,656			249,116			184,854
Other income (expense) — net	(178		)	236			(1,443		)	(1,092		)	1,151
Interest expense	42,206			42,250			29,332			16,150			17,178
Provision for income taxes	97,914			48,574			80,024			74,774			55,436
Net income	255,215			37,630			193,857			157,100			113,391
Earnings Per Share(3)
— basic	$	3.11		$	0.45		$	2.34		$	1.93		$	1.41
— diluted	$	3.09		$	0.45		$	2.32		$	1.90		$	1.40
Weighted average shares outstanding
— basic	81,517			82,689			82,145			80,466			79,716
— diluted	82,489			83,641			83,543			81,983			80,727
Year-end shares outstanding	81,196			82,727			83,234			82,070			80,970
Cash dividends per share	$	0.89		$	0.80		$	0.68		$	0.60		$	0.48
FINANCIAL POSITION
Current assets	$	990,953		$	881,865		$	789,161		$	692,758		$	451,712
Current liabilities	304,609			291,427			258,278			353,668			189,682
Working capital	686,344			590,438			530,883			339,090			262,030
Current ratio	3.3			3.0			3.1			2.0			2.4
Total assets	$	2,887,577		$	2,785,390		$	2,836,107		$	2,381,695		$	2,098,157
Total borrowings	773,876			786,576			808,810			527,895			400,100
Shareholders’ equity	1,572,989			1,464,998			1,513,135			1,375,660			1,268,104
PERFORMANCE MEASURES AND OTHER DATA
Percent of net sales:
Gross profit	43.1		%	41.1		%	40.2		%	40.9		%	39.3		%
SG&A expenses	23.6		%	22.7		%	22.9		%	23.7		%	24.5		%
Operating income	19.5		%	6.6		%	16.6		%	16.5		%	13.9		%
Income before income taxes	17.4		%	4.4		%	14.9		%	15.3		%	12.7		%
Net income	12.6		%	1.9		%	10.5		%	10.4		%	8.5		%
Capital expenditures	$	31,536		$	35,520		$	34,548		$	32,769		$	25,525
Depreciation and amortization	79,334			78,312			72,386			58,108			56,346
Return on average assets	9.0		%	1.3		%	7.4		%	7.0		%	5.3		%
Borrowings as a percent of capitalization	33.0		%	34.9		%	34.8		%	27.7		%	24.0		%
Return on average shareholders' equity	16.8		%	2.5		%	13.4		%	11.9		%	9.4		%
Employees at year end	6,787			6,717			6,814			5,966			5,300
Shareholders at year end	6,500			6,700			7,000			7,000			7,000
NON-GAAP MEASURES
EBITDA	$	474,669		$	206,766		$	375,599		$	306,132		$	242,351
EBITDA as a percentage of net sales	23.5		%	10.6		%	20.4		%	20.2		%	18.2		%
Adjusted EBITDA(4)	$	474,669		$	437,758		$	387,913		$	317,227		$	254,430
Adjusted EBITDA as a percentage of net sales (4)	23.5		%	22.4		%	21.1		%	21.0		%	19.1		%


(1)	For additional detail, see Notes to Consolidated Financial Statements in Part II, Item 8, “Financial Statements and Supplementary Data.”


(2)	Fiscal year 2012 includes an impairment charge for goodwill and intangible assets within the IOP platform and an impairment charge for goodwill and long-lived assets within the WST group.


(3)	Calculated by applying the two-class method of allocating earnings to common stock and participating securities as required by ASC 260, Earnings Per Share.


(4)	The following is a reconciliation of EBITDA and Adjusted EBITDA to the comparable measures of net income and operating income, as determined in accordance with U.S. GAAP. We have reconciled consolidated EBITDA to net income and we have reconciled segment EBITDA to operating income, as we do not allocate interest and income taxes to our segments. EBITDA means earnings before interest, income taxes, depreciation and amortization. Given the acquisitive nature of the Company which results in a higher level of amortization expense at recently acquired businesses, management uses EBITDA as an internal operating metric to provide management with another representation of performance of businesses across our three segments and for enterprise valuation purposes. In addition, EBITDA has been adjusted for items that are not reflective of ongoing operations, such as asset impairments and restructuring expenses to arrive at Adjusted EBITDA. Management believes that Adjusted EBITDA is useful as an analytical indicator of leverage capacity and debt servicing ability, and uses it to measure financial performance as well as for planning purposes. We believe that Adjusted EBITDA is also useful to some investors as an indicator of the strength and performance of the Company's and its segments ongoing business operations and a way to evaluate and compare operating performance and value companies within our industry. However, it should not be considered as an alternative to net income, operating income or any other items calculated in accordance with U.S. GAAP. The definition of EBITDA used here may differ from that used by other companies.

(4)

The following is a reconciliation of EBITDA and Adjusted EBITDA to the comparable measures of net income and operating income, as determined in accordance with U.S. GAAP. We have reconciled consolidated EBITDA to net income and we have reconciled segment EBITDA to operating income, as we do not allocate interest and income taxes to our segments. EBITDA means earnings before interest, income taxes, depreciation and amortization. Given the acquisitive nature of the Company which results in a higher level of amortization expense at recently acquired businesses, management uses EBITDA as an internal operating metric to provide management with another representation of performance of businesses across our three segments and for enterprise valuation purposes. In addition, EBITDA has been adjusted for items that are not reflective of ongoing operations, such as asset impairments and restructuring expenses to arrive at Adjusted EBITDA. Management believes that Adjusted EBITDA is useful as an analytical indicator of leverage capacity and debt servicing ability, and uses it to measure financial performance as well as for planning purposes. We believe that Adjusted EBITDA is also useful to some investors as an indicator of the strength and performance of the Company's and its segments ongoing business operations and a way to evaluate and compare operating performance and value companies within our industry. However, it should not be considered as an alternative to net income, operating income or any other items calculated in accordance with U.S. GAAP. The definition of EBITDA used here may differ from that used by other companies.



	For the Years Ended December 31,
Consolidated	2013			2012			2011			2010			2009
	(In thousands)
Net Income	$	255,215		$	37,630		$	193,857		$	157,100		$	113,391
+ Income taxes	97,914			48,574			80,024			74,774			55,436
+ Interest Expense	42,206			42,250			29,332			16,150			17,178
+ Depreciation & amortization	79,334			78,312			72,386			58,108			56,346
EBITDA	474,669			206,766			375,599			306,132			242,351
+ Restructuring	—			32,473			12,314			11,095			12,079
+ Asset impairment	—			198,519			—			—			—
Adjusted EBITDA	$	474,669		$	437,758		$	387,913		$	317,227		$	254,430

Net sales	$	2,024,130		$	1,954,258		$	1,838,451		$	1,513,073		$	1,329,661
EBITDA as a percentage of net sales	23.5		%	10.6		%	20.4		%	20.2		%	18.2		%
Adjusted EBITDA as a percentage of net sales	23.5		%	22.4		%	21.1		%	21.0		%	19.1		%



	For the Years Ended December 31,
	2013									2012									2011
	FMT			HST			FSD			FMT			HST			FSD			FMT			HST			FSD
	(In thousands)
Operating income (loss)	$	211,256		$	136,707		$	102,730		$	146,650		$	(62,835	)	$	96,120		$	164,818		$	106,037		$	85,901
+ Other income (expense)	(1,789		)	508			342			25			(511		)	143			(249		)	(1,822		)	1,108
+ Depreciation & amortization	27,633			43,496			6,852			29,637			39,981			7,107			32,368			30,055			8,516
EBITDA	237,100			180,711			109,924			176,312			(23,365		)	103,370			196,937			134,270			95,525
+ Restructuring	—			—			—			6,262			14,744			8,340			2,861			2,130			5,227
+ Asset impairment	—			—			—			27,721			170,798			—
Adjusted EBITDA	$	237,100		$	180,711		$	109,924		$	210,295		$	162,177		$	111,710		$	199,798		$	136,400		$	100,752

Net sales	$	871,814		$	714,650		$	445,049		$	833,288		$	695,235		$	437,053		$	831,287		$	607,900		$	402,425
EBITDA as a percentage of net sales	27.2		%	25.3		%	24.7		%	21.2		%	(3.4		)%	23.7		%	23.7		%	22.1		%	23.7		%
Adjusted EBITDA as a percentage of net sales	27.2		%	25.3		%	24.7		%	25.2		%	23.3		%	25.6		%	24.0		%	22.4		%	25.0		%

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