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Financial Highlights
(Dollars in millions, except per share data)
Statement of Earnings Data: 2011 2010 2009 2008 2007
Revenue (1)
Cost of revenue (1) (2)
$ 4,173.0
2,592.4
$ 4,199.7
2,680.2
$ 3,879.9
2,570.1
$ 4,528.4
2,993.8
$ 4,973.9
3,410.3
Gross profit 1,580.6 1,519.5 1,309.8 1,534.6 1,563.6
Research and development
Selling, general and administrative (1) (2)
Restructuring and related charges (2)
374.5
761.2
2.0
369.0
701.2
2.4
375.3
647.8
70.6
423.3
807.3
26.8
403.8
812.8
25.7
Operating expense 1,137.7 1,072.6 1,093.7 1,257.4 1,242.3
Operating income (1) (2) (3)
Interest (income) expense, net
Other (income) expense, net (4)
Net impairment losses on securities
442.9
29.9
(0.6)
–
446.9
26.3
(1.2)
0.3
216.1
21.4
4.6
3.1
277.2
(6.1)
7.4
–
321.3
(21.2)
(7.0)
–
Earnings before income taxes (1) (2) (3) (4)
Provision for income taxes (5)
413.6
92.7
421.5
81.5
187.0
41.1
275.9
35.7
349.5
48.7
Net earnings (1) (2) (3) (4) (5)
Diluted net earnings per common share (1) (2) (3) (4) (5)
Shares used in per share calculation
Dividends declared per share
$ 320.9
$ 4.12
77.9
$0.25
$ 340.0
$ 4.28
79.5
–
$ 145.9
$ 1.86
78.6
–
$ 240.2
$ 2.69
89.2
–
$ 300.8
$ 3.14
95.8
–
Statement of Financial Position Data:
Cash, cash equivalents and current marketable securities
Working capital
Total assets
Total debt
Stockholders’ equity
$ 1,149.4
1,085.5
3,637.0
649.3
1,391.7
$ 1,217.2
1,023.3
3,705.2
649.1
1,394.3
$ 1,132.5
948.9
3,354.2
648.9
1,013.6
$ 973.3
805.2
3,265.4
654.2
812.1
$ 796.1
569.5
3,121.1
149.9
1,278.3
Other Key Data:
Net cash from operations (6)
Capital expenditures
Debt to total capital ratio (7)
$ 391.0
$ 156.5
32%
$ 520.4
$ 161.2
32%
$ 402.2
$ 242.0
39%
$ 482.1
$ 217.7
45%
$ 564.2
$ 182.7
10%
(1) Perceptive Software Revenue and Operating income (loss) included in the table above for 2011 were $94.8 million and $(29.6) million, respectively. The Company incurred pre-tax charges of $24.5 mil-
lion in 2011 related to acquisitions, primarily Perceptive Software and Pallas Athena, including $21.2 million related to amortization of intangible assets and $3.3 million of other acquisition-related costs
and integration expenses. Amortization of intangible assets is included in Cost of revenue, Selling, general and administrative and Research and development in the amount of $15.5 million, $5.3 million
and $0.4 million, respectively. Other acquisition-related costs and integration expenses are included in Selling, general and administrative.
The Company acquired Perceptive Software on June 7, 2010. Perceptive Software Revenue and Operating income (loss) included in the table above for 2010 (subsequent to the acquisition) were $37.3
million and $(16.1) million, respectively. The Company incurred pre-tax charges of $19.1 million in 2010 related to acquisitions, primarily Perceptive Software, including $12.0 million related to amortiza-
tion of intangible assets and $7.1 million of other acquisition-related costs and integration expenses. Amortization of intangible assets is included in Cost of revenue and Selling, general and administra-
tive in the amount of $9.1 million and $2.9 million, respectively. Other acquisition-related costs and integration expenses are included in Selling, general and administrative.
(2) Amounts in 2011 include restructuring-related charges and project costs of $29.9 million. Restructuring-related charges of $4.5 million and $2.4 million related to accelerated depreciation on certain
fixed assets are included in Cost of revenue and Selling, general and administrative, respectively. Restructuring-related charges of $4.6 million relating to the impairment of long lived assets held for sale
are included in Selling, general and administrative. Restructuring-related charges of $2.0 million relating to employee termination benefits and contract termination charges are included in Restructuring
and related charges. Project costs of $0.7 million are included in Cost of revenue, and $15.7 million are included in Selling, general and administrative.
Amounts in 2010 include restructuring-related charges and project costs of $38.6 million. Restructuring-related charges of $4.1 million and $1.8 million related to accelerated depreciation on certain
fixed assets are included in Cost of revenue and Selling, general and administrative, respectively. Restructuring-related charges of $2.4 million relating to employee termination benefits and contract
termination charges are included in Restructuring and related charges. Project costs of $13.3 million are included in Cost of revenue, and $17.0 million are included in Selling, general and administrative.
Amounts in 2009 include restructuring-related charges and project costs of $141.3 million. Restructuring-related charges of $41.4 million and $0.1 million related to accelerated depreciation on certain
fixed assets are included in Cost of revenue and Selling, general and administrative, respectively. Restructuring-related charges of $70.6 million relating to employee termination benefits and contract
termination charges are included in Restructuring and related charges. Project costs of $10.1 million are included in Cost of revenue, and $19.1 million are included in Selling, general and administrative.
Amounts in 2008 include restructuring-related charges and project costs of $92.7 million. Restructuring-related charges of $27.2 million and $8.1 million related to accelerated depreciation on certain
fixed assets are included in Cost of revenue and Selling, general and administrative, respectively. Restructuring-related charges of $26.8 million relating to employee termination benefits and contract
termination charges are included in Restructuring and related charges. Project costs of $15.3 million are included in Cost of revenue, and $15.3 million are included in Selling, general and administrative.
Amounts in 2007 include restructuring-related charges and project costs of $52.0 million. Restructuring-related charges of $5.1 million relating to accelerated depreciation on certain fixed assets are
included in Cost of revenue. Restructuring-related charges of $25.7 million relating to employee termination benefit charges are included in Restructuring and related charges. Project costs of $11.9
million and $9.3 million are included in Cost of revenue and Selling, general and administrative, respectively.
(3) Amounts in 2011, 2010, 2009, 2008, and 2007 include $22.4 million, $19.4 million, $20.7 million, $32.8 million, and $41.3 million, respectively, of pre-tax stock-based compensation expense.
(4) Amounts in 2007 include an $8.1 million pre-tax foreign exchange gain realized upon the substantial liquidation of the Company’s Scotland entity.
(5) Amounts in 2010 include a $14.7 million benefit from discrete tax items mainly related to audits concluding, statutes expiring, and true-ups of prior year tax returns.
Amounts in 2008 include an $11.6 million benefit from discrete tax items mainly related to audits concluding and statutes expiring.
Amounts in 2007 include a $29.6 million benefit from discrete tax items mainly related to audits concluding, statutes expiring, and true-ups of prior year tax returns.
(6) Cash flows from investing and financing activities, which are not presented, are integral components of total cash flow activity.
(7) The debt to total capital ratio is computed by dividing total debt (which includes both short-term and long-term debt) by the sum of total debt and stockholders’ equity.