filings.toolsItem 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) | 2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||
| SUMMARY OF OPERATIONS | |||||||||||||||
| Net sales | $ | 1,509.1 | $ | 1,399.8 | $ | 1,421.4 | $ | 1,368.4 | $ | 1,266.4 | |||||
| Operating profit | 196.8 | 128.6 | 182.0 | 162.4 | 135.1 | ||||||||||
| Net income | 143.6 | 95.6 | 127.1 | 112.3 | 80.7 | ||||||||||
| Net income per share: | |||||||||||||||
| Basic (1) | $ | 1.96 | $ | 1.33 | $ | 1.79 | $ | 1.61 | $ | 1.19 | |||||
| Diluted (2) | 1.91 | 1.30 | 1.75 | 1.57 | 1.15 | ||||||||||
| Weighted average common shares outstanding | 73.3 | 72.0 | 70.9 | 69.6 | 68.1 | ||||||||||
| Weighted average shares assuming dilution | 75.0 | 73.8 | 72.8 | 71.4 | 71.8 | ||||||||||
| Dividends declared per common share | $ | 0.50 | $ | 0.46 | $ | 0.41 | $ | 0.39 | $ | 0.37 | |||||
| YEAR-END FINANCIAL POSITION | |||||||||||||||
| Cash and cash equivalents | $ | 203.0 | $ | 274.6 | $ | 255.3 | $ | 230.0 | $ | 161.9 | |||||
| Working capital | 400.9 | 359.4 | 406.6 | 413.6 | 295.4 | ||||||||||
| Total assets | 1,716.7 | 1,695.1 | 1,669.7 | 1,670.2 | 1,562.5 | ||||||||||
| Total invested capital: | |||||||||||||||
| Total debt | 228.6 | 298.2 | 335.5 | 372.1 | 410.0 | ||||||||||
| Total equity | 1,117.5 | 1,023.9 | 956.9 | 906.4 | 728.9 | ||||||||||
| Total invested capital | $ | 1,346.1 | $ | 1,322.1 | $ | 1,292.4 | $ | 1,278.5 | $ | 1,138.9 | |||||
| PERFORMANCE MEASUREMENTS (3) | |||||||||||||||
| Gross margin (a) | 33.2 | % | 32.6 | % | 31.5 | % | 31.8 | % | 30.6 | % | |||||
| Operating profitability (b) | 13.0 | % | 9.2 | % | 12.8 | % | 11.9 | % | 10.7 | % | |||||
| Effective tax rate | 28.7 | % | 22.6 | % | 28.0 | % | 27.4 | % | 30.2 | % | |||||
| Return on invested capital (c) | 10.5 | % | 7.6 | % | 10.2 | % | 9.8 | % | 8.8 | % | |||||
| Net debt-to-total invested capital (d) | 2.2 | % | 2.3 | % | 7.7 | % | 13.6 | % | 25.4 | % | |||||
| Research and development expenses | $ | 36.8 | $ | 34.1 | $ | 37.3 | $ | 37.9 | $ | 33.2 | |||||
| Operating cash flow | 219.4 | 212.4 | 182.9 | 220.5 | 187.4 | ||||||||||
| Stock price range | $86.50-53.88 | $64.59-48.66 | $55.29-39.11 | $50.60-27.31 | $28.01-18.68 |
(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. The following performance measures are not in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) and should not be used as a substitute for the comparable U.S. GAAP financial measures. The non-U.S. GAAP financial measures are included as management uses them in evaluating our results of operations, and believes that this information provides users with a valuable insight into our overall performance and financial position.
(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.
(c) Operating profit multiplied by one minus the effective tax rate divided by average total invested capital.
(d) Net debt (total debt less cash and cash equivalents) divided by total invested capital less cash and cash equivalents.
Factors affecting the comparability of the information reflected in the selected financial data:
| ▪ | Net income in 2016 included the impact of restructuring and related charges of $17.4 million (net of $9.0 million in tax), a charge related to the devaluation of the Venezuelan Bolivar of $2.7 million, a pension curtailment gain of $1.3 million (net of $0.8 million in tax), and a discrete tax charge of $1.0 million. |
| ▪ | Net income in 2015 included the impact of a pension settlement charge of $32.0 million (net of $18.4 million in tax), a charge for executive retirement and related costs of $6.9 million (net of $4.0 million in tax) and a discrete tax charge of $0.8 million. |
| ▪ | 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. |
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