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Financial Highlights
During 2013, the Company changed its accounting policy for pension and other postretirement benefit plan asset and actuarial gains and losses. Under the new accounting policy, these gains and
losses will be recognized in net periodic benefit cost in the year in which they occur rather than amortized over time. Results for all periods presented in this Annual Report on Form 10-K reflect
the retrospective application of this accounting policy change. Refer to Part II, Item 8, Note 2 of the Notes to Consolidated Financial Statements for additional information.
(1) Refer to Part II, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations — Acquisition-Related Adjustments and Part II, Item 8, Note 4 of the Notes to
Consolidated Financial Statements for more information on the Company’s acquisitions and pre-tax charges related to amortization of intangible assets and other acquisition-related costs and
integration expenses for 2013, 2012 and 2011. Refer to Part II, Item 8, Note 4 of the Notes to Consolidated Financial Statements for more information on the Company’s divestiture-related
adjustments for 2013. Refer to Part II, Item 8, Note 20 of the Notes to Consolidated Financial Statements for more information on the Company’s reportable segment Revenue and Operating
income (loss) for 2013, 2012 and 2011.
The Company acquired Perceptive Software in the second quarter of 2010. Perceptive Software Revenue and Operating income (loss) included in the table above for 2010 (subsequent to the
acquisition) were $37.3 million and $(16.0) 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 amortization 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 administrative 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) Refer to Part II, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations — Restructuring Charges and Project Costs for more information on the
Company’s restructuring charges and project costs for 2013, 2012 and 2011. Refer to Part II, Item 8, Note 5 of the Notes to Consolidated Financial Statements for more information on the
Company’s restructuring charges for 2013, 2012 and 2011.
Amounts in 2010 include restructuring charges and project costs of $38.6 million. Restructuring 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 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 charges and project costs of $141.3 million. Restructuring 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 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.
(3) Refer to Part II, Item 8, Note 17 of the Notes to Consolidated Financial Statements for more information on the Company’s asset and actuarial net gain (loss) on pension and other postretirement
benefit plans for 2013, 2012 and 2011.
Amounts in 2010 include asset and actuarial net loss on pension and other postretirement benefit plans of $1.9 million. The net loss is included in Cost of revenue, Selling, general and administrative and
Research and development as a loss of $0.8 million, a gain of $0.2 million and a loss of $1.3 million, respectively.
Amounts in 2009 include asset and actuarial net gain on pension and other postretirement benefit plans of $24.9 million. The net gain is included in Cost of revenue, Selling, general and
administrative and Research and development in the amount of $6.2 million, $3.7 million and $15.0 million, respectively.
(4) Refer to Part II, Item 8, Note 14 of the Notes to Consolidated Financial Statements for more information on the Company’s benefit from discrete tax items for 2013, 2012 and 2011. 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.
(5) 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.
Statement of Earnings Data: 2013 2012 2011 2010 2009
Revenue (1) $ 3,667.6 $ 3,797.6 $ 4,173.0 $ 4,199.7 $ 3,879.9
Cost of revenue (1)(2)(3) 2,223.7 2,395.8 2,608.9 2,677.7 2,562.8
Gross profit 1,443.9 1,401.8 1,564.1 1,522.0 1,317.1
Research and development (1)(3) 287.2 369.1 405.9 364.8 359.3
Selling, general and administrative (1)(2)(3) 810.1 805.1 788.5 694.6 641.6
Gain on sale of inkjet-related technology and assets (1) (73.5) – – – –
Restructuring and related charges (2) 10.9 36.1 2.0 2.4 70.6
Operating expense 1,034.7 1,210.3 1,196.4 1,061.8 1,071.5
Operating income (1)(2)(3) 409.2 191.5 367.7 460.2 245.6
Non-operating expenses 40.8 29.1 29.3 25.5 29.1
Earnings before income taxes (1)(2)(3) 368.4 162.4 338.4 434.7 216.5
Provision for income taxes (4) 106.6 54.8 63.2 84.5 55.3
Net earnings (1)(2)(3)(4) $ 261.8 $ 107.6 $ 275.2 $ 350.2 $ 161.2
Diluted net earnings per common share (1)(2)(3)(4) $ 4.08 $ 1.55 $ 3.53 $ 4.41 $ 2.05
Shares used in per share calculation 64.1 69.5 77.9 79.5 78.6
Cash dividends declared per common share $ 1.20 $ 1.15 $ 0.25 $ – $ –
Statement of Financial Position Data:
Cash, cash equivalents and current marketable securities $ 1,054.7 $ 905.8 $ 1,149.4 $ 1,217.2 $ 1,132.5
Working capital 824.8 476.6 1,084.2 1,022.0 948.9
Total assets 3,619.5 3,525.3 3,640.2 3,706.8 3,350.4
Total debt 699.6 649.6 649.3 649.1 648.9
Stockholders’ equity 1,368.3 1,281.5 1,394.9 1,396.0 1,009.7
Other Key Data:
Debt to total capital ratio (5) 34% 34% 32% 32% 39%
(Dollars in millions, except per share data)