Item 6. SELECTED FINANCIAL DATA

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Item 6. SELECTED FINANCIAL DATA

FIVE-YEAR SUMMARY

West Pharmaceutical Services, Inc. and Subsidiaries



(in millions, except per share data)	2014			2013			2012			2011			2010
SUMMARY OF OPERATIONS
Net sales	$	1,421.4		$	1,368.4		$	1,266.4		$	1,192.3		$	1,104.7
Operating profit	182.0			162.4			135.1			109.6			90.7
Net income	$	127.1		$	112.3		$	80.7		$	75.5		$	65.3
Net income per share:
Basic (1)	$	1.79		$	1.61		$	1.19		$	1.12		$	0.98
Diluted (2)	1.75			1.57			1.15			1.08			0.95
Weighted average common shares outstanding	70.9			69.6			68.1			67.3			66.7
Weighted average shares assuming dilution	72.8			71.4			71.8			74.0			73.5
Dividends declared per common share	$	0.41		$	0.39		$	0.37		$	0.35		$	0.33
YEAR-END FINANCIAL POSITION
Cash and cash equivalents	$	255.3		$	230.0		$	161.9		$	91.8		$	110.2
Working capital	406.8			413.8			295.5			228.8			266.9
Total assets	1,670.9			1,671.6			1,564.0			1,399.1			1,294.3
Total invested capital:
Total debt	336.7			373.5			411.5			349.4			358.4
Total equity	956.9			906.4			728.9			654.9			625.7
Total invested capital	$	1,293.6		$	1,279.9		$	1,140.4		$	1,004.3		$	984.1
PERFORMANCE MEASUREMENTS (3)
Gross margin (a)	31.5		%	31.8		%	30.6		%	28.5		%	28.8		%
Operating profitability (b)	12.8		%	11.9		%	10.7		%	9.2		%	8.2		%
Effective tax rate	28.0		%	27.4		%	30.2		%	25.3		%	18.3		%
Return on invested capital (c)	10.2		%	9.8		%	8.8		%	8.2		%	7.6		%
Net debt-to-total invested capital (d)	7.8		%	13.7		%	25.5		%	28.2		%	28.4		%
Research and development expenses	$	37.3		$	37.9		$	33.2		$	29.1		$	23.9
Operating cash flow	182.9			220.5			187.4			130.7			138.3
Stock price range	$55.29-39.11			$50.60-27.31			$28.01-18.68			$23.98-17.75			$22.42-16.37

(1) Based on weighted average common shares outstanding.

(2) Based on weighted average shares, assuming dilution.

(3) Performance measurements represent indicators commonly used in the financial community. They are not measures of financial performance under U.S. generally accepted accounting principles ("U.S. GAAP").

(a) Net sales minus cost of goods and services sold, including applicable depreciation and amortization, divided by net sales.

(b) Operating profit divided by net sales.

(d) Net debt (total debt less cash and cash equivalents) divided by total invested capital net of cash and cash equivalents.

Factors affecting the comparability of the information reflected in the selected financial data:


▪	Net income in 2014 included the impact of a charge for license costs associated with acquired in-process research of $0.8 million (net of $0.4 million in tax) and discrete tax charges of $1.8 million.


▪	Net income in 2013 included the impact of a loss on extinguishment of debt of $0.2 million and net discrete tax charges of $3.6 million.


▪	Net income in 2012 included the impact of restructuring and related charges of $1.4 million (net of $0.7 million in tax), an impairment charge of $2.1 million (net of $1.3 million in tax), an increase in acquisition-related contingencies of $1.0 million (net of $0.2 million in tax), a loss on extinguishment of debt of $9.8 million (net of $1.8 million in tax) and discrete tax charges of $2.1 million.

▪

Net income in 2012 included the impact of restructuring and related charges of $1.4 million (net of $0.7 million in tax), an impairment charge of $2.1 million (net of $1.3 million in tax), an increase in acquisition-related contingencies of $1.0 million (net of $0.2 million in tax), a loss on extinguishment of debt of $9.8 million (net of $1.8 million in tax) and discrete tax charges of $2.1 million.


▪	Net income in 2011 included the impact of restructuring and related charges of $3.5 million (net of $1.8 million in tax), income from the reduction of acquisition-related contingencies of $0.2 million, special separation benefits related to the retirement of our former President and Chief Operating Officer of $1.8 million (net of $1.1 million in tax) and net discrete tax charges of $1.4 million.


▪	Net income in 2010 included the impact of restructuring charges and asset impairments of $10.2 million (net of $5.7 million in tax), income from the reduction of acquisition-related contingencies of $1.6 million (net of $0.2 million in tax) and the recognition of income tax benefits totaling $1.1 million, the majority of which resulted from the reversal of liabilities for unrecognized tax benefits.

▪

Net income in 2010 included the impact of restructuring charges and asset impairments of $10.2 million (net of $5.7 million in tax), income from the reduction of acquisition-related contingencies of $1.6 million (net of $0.2 million in tax) and the recognition of income tax benefits totaling $1.1 million, the majority of which resulted from the reversal of liabilities for unrecognized tax benefits.

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