Hamilton Beach 2012 Annual Report Download - page 26

24
Supplemental Data
Calculation of Return on Capital Employed:
2012
2012 Average Equity (12/31/2011 and each of 2012’s quarter ends) . . . . . . . . . . . . . . . . . . . .
2012 Average Debt (12/31/2011 and at each of 2012’s quarter ends) . . . . . . . . . . . . . . . . . . .
2012 Average Cash (12/31/2011 and at each of 2012’s quarter ends) . . . . . . . . . . . . . . . . . . .
Total 2012 average capital employed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2012 Net income (loss), as reported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Plus: 2012 Interest expense, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Income taxes on 2012 interest expense at 38%*. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual return on capital employed = actual net income (loss)
before interest expense,net, after tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual return on capital employed percentage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
HBB
$ 36.0
45.5
(3.7)
$ 77.8
$ 21.2
2.7
(1.0)
$ 22.9
29.4%
Kitchen
Collection
$ 42.9
7.9
(5.3)
$ 45.5
$ (3.1)
0.5
(0.2)
$ (2.8)
(6.1%)
NACoal
$ 96.4
109.0
(5.7)
$ 199.7
$ 32.8
2.7
(1.0)
$ 34.5
17.3%
(In millions, except percentage data)
2011 Income from continuing operations, as reported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Impact of Applica settlement, after taxes of $21.0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Impact of Applica litigation costs, after taxes of $1.0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2011 Adjusted Income from continuing operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Return on capital employed is provided solely as a supplemental disclosure with respect to income generation because management believes it provides
useful information with respect to earnings in a form that is comparable to the Company’s cost of capital employed, which includes both equity and debt
securities, net of cash.
Return on equity is defined as net income divided by average equity.
* Tax rate of 38% represents the Company’s target marginal tax rate compared with 2012’s effective income tax rate of 27.2%.
** Tax rate of 38% represents the Company’s target marginal tax rate compared with 2011’s effective income tax rate of 29.2%.
Adjusted Income from continuing operations is a measure of income that differs from Income from continuing operations measured in accordance with
U.S. GAAP. The Company has reported adjusted income from continuing operations and earnings per diluted share for the year ended December 31, 2011
excluding the net effect of the Applica settlement and related litigation costs. Management believes a discussion excluding the settlement and litigation
costs is more reflective of NACCO’s underlying business operations and enables investors to better understand the results of operations of the Company.
Reconciliation of 2011 Consolidated Income from continuing operations
“As reported” to Adjusted Income from continuing operations:
2011
$ 79.5
(39.0)
1.8
$ 42.3
Diluted earnings
per share
$ 9.46
(4.64)
0.21
$ 5.03
(In millions, except per share data)
Calculation of Return on Capital Employed:
2011
2011 Average Equity (12/31/2010 and each of 2011’s quarter ends) . . . . . . . . . . . . . . . . . . . .
2011 Average Debt (12/31/2010 and at each of 2011’s quarter ends) . . . . . . . . . . . . . . . . . . .
2011 Average Cash (12/31/2010 and at each of 2011’s quarter ends) . . . . . . . . . . . . . . . . . . .
Total 2011 average capital employed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2011 Net income, as reported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Plus: 2011 Interest expense, as reported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Income taxes on 2011 interest expense at 38%**. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual return on capital employed = actual net income
before interest expense, after tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual return on capital employed percentage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
HBB
$ 22.3
90.6
(34.8)
$ 78.1
$ 18.4
5.2
(2.0)
$ 21.6
27.7%
Kitchen
Collection
$ 43.2
7.6
(5.1)
$ 45.7
$ 1.1
0.5
(0.2)
$ 1.4
3.1%
NACoal
$ 133.8
51.9
(2.7)
$ 183.0
$ 29.4
2.7
(1.0)
$ 31.1
17.0%