Attached files
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| 8-K - FORM 8-K DATED AUGUST 12, 2014 - VALSPAR CORP | valspar_8k.htm |
Exhibit 99.1
 |
News Release |
Valspar Reports Fiscal 2014 Third Quarter Results
| · | Third quarter net sales increased 10 percent to $1.2 billion |
| · | Third quarter diluted EPS (as adjusted) increased 13 percent to $1.21 |
| · | Volumes increased 11 percent driven primarily by strength in Coatings segment |
| · | Fiscal 2014 annual sales guidance updated to approximately 9% growth |
| · | Fiscal 2014 annual diluted EPS (as adjusted) guidance updated to $4.05 to $4.15 |
Minneapolis – (BUSINESS WIRE) – August 12, 2014 – The Valspar Corporation (NYSE: VAL) today reported fiscal third quarter 2014 net sales of $1.2 billion, an increase of 10 percent over the prior year. Reported net income and earnings per diluted share for the current year include nonrecurring items, which are detailed in the “Reconciliation of Non-GAAP Financial Measures” included in this release. Third quarter 2014 adjusted net income and earnings per diluted share, excluding these nonrecurring items, were $103 million and $1.21, respectively. Third quarter 2013 adjusted net income and earnings per diluted share were $96 million and $1.07 respectively.
“Our diverse business portfolio continues to deliver strong results, as sales increased 10 percent and adjusted EPS increased 13 percent in the third quarter,” said Gary E. Hendrickson, chairman and chief executive officer. “These results were driven by the successful integration of acquisitions; strong performance from China and Europe; improved sales and profitability in our Coatings segment; benefits of new growth initiatives; investments in innovative products; and the positive impact of productivity initiatives.”
“Within the Coatings segment, all product lines grew both volume and sales,” Hendrickson added. “We realized the highest growth in the General Industrial product line, which benefited from the impact of the Inver acquisition and modestly improving end market demand. Our Packaging product line continues to grow, driven by market share gains and momentum of our non-BPA products. In our Paints segment, all regions grew sales and highlighting the quarter was the successful launch in the U.S. of the new Valspar® ReserveTM premium paint at Lowe’s and the roll out of Valspar branded paint at over 3,000 Ace Hardware stores. The Paints segment EBIT declined this quarter reflecting planned investments to support the launch of these new retail paint initiatives.”
“Looking forward, based on our performance to date and outlook for the fiscal fourth quarter of 2014, we are updating our annual fiscal 2014 sales guidance to approximately 9% growth and updating our adjusted earnings per share guidance to $4.05 to $4.15,” said Hendrickson.
Net sales in the Coatings segment increased 16 percent to $666 million in the fiscal third quarter of 2014. Excluding acquisitions, sales in the segment increased 6 percent and volumes were up mid-single digits. Volume grew in all product lines within the Coatings segment, led by General Industrial (including Inver), Wood, Packaging and Coil. Volumes were also up in all geographic regions. Coatings segment adjusted earnings before interest and taxes (EBIT) of $122 million increased 21 percent as a result of acquisitions, increased volume, improved sales mix and productivity initiatives.
Net sales in the Paints segment increased 4 percent to $474 million in the fiscal third quarter of 2014 and, volume increased high-single digits. Sales growth (in local currency) was led by performance in China and Australia. Sales in the U.S. increased low single-digits and were impacted by shipments made in the previous quarter to support the introduction of new retail programs in both the home improvement and hardware channels. Paints segment adjusted EBIT of $44 million was down 16 percent from the prior year primarily due to planned increases in advertising and marketing investments to support new retail programs in the home improvement and independent hardware channels.
Fiscal 2014 Guidance
The company is updating its fiscal 2014 annual sales growth guidance to approximately 9% growth, compared to its previous guidance of 7% to 9% growth. The company is also updating its fiscal 2014 annual diluted EPS (as adjusted) guidance to $4.05 to $4.15, compared to its previous guidance of $3.95 to $4.15.
Dividends and Share Repurchases
During the quarter, the company paid a quarterly dividend of $0.26 per common share outstanding, or $21.7 million. Valspar is a member of the S&P High Yield Dividend Aristocrats®, which is comprised of companies increasing dividends every year for at least 20 consecutive years. Also during the quarter, the company repurchased 1.1 million shares, for $81 million.
Valspar Analyst Day
Valspar is planning to host an Analyst Day in New York on December 3, 2014 for analysts and investors. More details on the event will be coming soon.
An earnings conference call is scheduled for 11:00 a.m. Eastern Time (10:00 a.m. Central Time) today and will be webcast and accessible from the Investor Relations section of Valspar’s website at http://investors.valspar.com.
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About The Valspar Corporation
The Valspar Corporation (NYSE: VAL) is a global leader in the paint and coatings industry. Since 1806, Valspar has been dedicated
to bringing customers the latest innovations, the finest quality and the best customer service in the coatings industry. For more
information, visit www.valsparglobal.com.
# # #
Investor Contact:
Bill Seymour
612.656.1328
william.seymour@valspar.com
Media Contact:
Kimberly A. Welch
612.656.1347
kim.welch@valspar.com
FORWARD-LOOKING STATEMENTS
Certain statements contained in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in this report constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. Forward-looking statements are based on management’s current expectations, estimates, assumptions and beliefs about future events, conditions and financial performance. Forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside our control and could cause actual results to differ materially from such statements. Any statement that is not historical in nature is a forward-looking statement. We may identify forward-looking statements with words and phrases such as “expects,” “projects,” “estimates,” “anticipates,” “believes,” “could,” “may,” “will,” “plans to,” “intend,” “should” and similar expressions. These risks, uncertainties and other factors include, but are not limited to, deterioration in general economic conditions, both domestic and international, that may adversely affect our business; fluctuations in availability and prices of raw materials, including raw material shortages and other supply chain disruptions, and the inability to pass along or delays in passing along raw material cost increases to our customers; dependence of internal sales and earnings growth on business cycles affecting our customers and growth in the domestic and international coatings industry; market share loss to, and pricing or margin pressure from, larger competitors with greater financial resources; significant indebtedness that restricts the use of cash flow from operations for acquisitions and other investments; dependence on acquisitions for growth, and risks related to future acquisitions, including adverse changes in the results of acquired businesses, the assumption of unforeseen liabilities and disruptions resulting from the integration of acquisitions; risks and uncertainties associated with operations and achievement of profitable growth in developing markets, including Asia and Central and South America; loss of business with key customers; damage to our reputation and business resulting from product claims or recalls, litigation, customer perception and other matters; our ability to respond to technology changes and to protect our technology; possible interruption, failure or compromise of the information systems we use to operate our business; changes in governmental regulation, including more stringent environmental, health and safety regulations; our reliance on the efforts of vendors, government agencies, utilities and other third parties to achieve adequate compliance and avoid disruption of our business; unusual weather conditions adversely affecting sales; changes in accounting policies and standards and taxation requirements such as new tax laws or revised tax law interpretations; the nature, cost and outcome of pending and future litigation and other legal proceedings; and civil unrest and the outbreak of war and other significant national and international events. We undertake no obligation to subsequently revise any forward-looking statement to reflect new information, events or circumstances after the date of such statement, except as required by law.
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THE VALSPAR CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
For the Three and Nine Months Ended July 25, 2014 and July 26, 2013
(Dollars in thousands, except per share amounts)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| July 25, | July 26, | July 25, | July 26, | |||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| Net Sales | $ | 1,203,062 | $ | 1,089,013 | $ | 3,289,359 | $ | 2,995,474 | ||||||||
| Cost of Sales | 783,068 | 718,000 | 2,155,179 | 1,984,888 | ||||||||||||
| Restructuring Charges - Cost of Sales | 3,302 | 1,652 | 17,677 | 8,321 | ||||||||||||
| Gross Profit | 416,692 | 369,361 | 1,116,503 | 1,002,265 | ||||||||||||
| Research and Development | 34,285 | 31,849 | 100,428 | 98,284 | ||||||||||||
| Selling, General and Administrative | 219,527 | 180,342 | 608,274 | 520,109 | ||||||||||||
| Restructuring Charges | 4,351 | 838 | 10,638 | 3,489 | ||||||||||||
| Acquisition-related Charges | — | 758 | — | 758 | ||||||||||||
| Operating Expenses | 258,163 | 213,787 | 719,340 | 622,640 | ||||||||||||
| Income From Operations | 158,529 | 155,574 | 397,163 | 379,625 | ||||||||||||
| Interest Expense | 16,137 | 16,000 | 47,825 | 47,861 | ||||||||||||
| Other (Income) Expense, Net | 1,812 | 1,065 | 2,501 | 2,042 | ||||||||||||
| Income Before Income Taxes | 140,580 | 138,509 | 346,837 | 329,722 | ||||||||||||
| Income Taxes | 42,747 | 44,701 | 109,492 | 103,977 | ||||||||||||
| Net Income | $ | 97,833 | $ | 93,808 | $ | 237,345 | $ | 225,745 | ||||||||
| Average Number of Shares O/S - basic | 83,194,913 | 87,227,248 | 84,168,188 | 88,373,620 | ||||||||||||
| Average Number of Shares O/S - diluted | 85,477,072 | 89,910,681 | 86,547,612 | 91,163,437 | ||||||||||||
| Net Income per Common Share - basic | $ | 1.18 | $ | 1.08 | $ | 2.82 | $ | 2.55 | ||||||||
| Net Income per Common Share - diluted | $ | 1.14 | $ | 1.04 | $ | 2.74 | $ | 2.48 | ||||||||
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THE VALSPAR CORPORATION
SEGMENT INFORMATION (UNAUDITED AND SUBJECT TO RECLASSIFICATION)
For the Three and Nine Months Ended July 25, 2014 and July 26, 2013
(Dollars in thousands)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| July 25, | July 26, | July 25, | July 26, | |||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| Coatings Segment1 | ||||||||||||||||
| Net Sales | $ | 666,358 | $ | 572,837 | $ | 1,817,542 | $ | 1,607,152 | ||||||||
| Earnings Before Interest and Taxes (EBIT) | 114,874 | 99,026 | 282,896 | 253,602 | ||||||||||||
| Key Metrics (GAAP): | ||||||||||||||||
| Sales Growth | 16.3% | 0.6% | 13.1% | 0.2% | ||||||||||||
| EBIT, % of Net Sales | 17.2% | 17.3% | 15.6% | 15.8% | ||||||||||||
| Key Metrics (non-GAAP)2: | ||||||||||||||||
| Adjusted EBIT | $ | 122,019 | $ | 101,026 | $ | 301,300 | $ | 258,327 | ||||||||
| Adjusted EBIT, % of Net Sales | 18.3% | 17.6% | 16.6% | 16.1% | ||||||||||||
| Paints Segment1 | ||||||||||||||||
| Net Sales | $ | 474,039 | $ | 454,969 | $ | 1,307,274 | $ | 1,222,002 | ||||||||
| EBIT | 43,224 | 50,761 | 124,644 | 126,206 | ||||||||||||
| Key Metrics (GAAP): | ||||||||||||||||
| Sales Growth | 4.2% | 2.8% | 7.0% | 1.1% | ||||||||||||
| EBIT, % of Net Sales | 9.1% | 11.2% | 9.5% | 10.3% | ||||||||||||
| Key Metrics (non-GAAP)2: | ||||||||||||||||
| Adjusted EBIT | $ | 43,704 | $ | 52,251 | $ | 134,279 | $ | 133,883 | ||||||||
| Adjusted EBIT, % of Net Sales | 9.2% | 11.5% | 10.3% | 11.0% | ||||||||||||
| Other and Administrative | ||||||||||||||||
| Net Sales | $ | 62,665 | $ | 61,207 | $ | 164,543 | $ | 166,320 | ||||||||
| EBIT | (1,381 | ) | 4,722 | (12,878 | ) | (2,225 | ) | |||||||||
| Key Metrics (GAAP): | ||||||||||||||||
| Sales Growth | 2.4% | (7.7% | ) | (1.1% | ) | (9.5% | ) | |||||||||
| EBIT, % of Net Sales | (2.2% | ) | 7.7% | (7.8% | ) | (1.3% | ) | |||||||||
| Key Metrics (non-GAAP)2: | ||||||||||||||||
| Adjusted EBIT | $ | (1,353 | ) | $ | 4,480 | $ | (12,602 | ) | $ | (2,059 | ) | |||||
| Adjusted EBIT, % of Net Sales | (2.2% | ) | 7.3% | (7.7% | ) | (1.2% | ) | |||||||||
| 1 | Certain insignificant products formerly classified in the Paints segment are now classified in the Coatings segment |
| 2 | The information on this page includes non-GAAP financial measures. Please refer to the “RECONCILIATION OF NON-GAAP FINANCIAL MEASURES” included in this release for detailed information. |
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THE VALSPAR CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
As of July 25, 2014 and July 26, 2013
(Dollars in thousands)
| July 25, | July 26, | |||||||
| 2014 | 2013 | |||||||
| Assets | ||||||||
| Current Assets: | ||||||||
| Cash and Cash Equivalents | $ | 146,505 | $ | 349,142 | ||||
| Restricted Cash | 3,121 | 13,539 | ||||||
| Accounts and Notes Receivable, Net | 870,954 | 716,033 | ||||||
| Inventories | 526,438 | 416,749 | ||||||
| Deferred Income Taxes | 40,057 | 37,791 | ||||||
| Prepaid Expenses and Other | 101,275 | 102,656 | ||||||
| Total Current Assets | 1,688,350 | 1,635,910 | ||||||
| Goodwill | 1,145,730 | 1,065,071 | ||||||
| Intangibles, Net | 602,516 | 549,468 | ||||||
| Other Assets | 93,035 | 32,595 | ||||||
| Long-Term Deferred Income Taxes | 7,098 | 4,903 | ||||||
| Property, Plant & Equipment, Net | 643,069 | 555,568 | ||||||
| Total Assets | $ | 4,179,798 | $ | 3,843,515 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current Liabilities: | ||||||||
| Short-term Debt | $ | 553,557 | $ | 412,394 | ||||
| Current Portion of Long-Term Debt | 4,500 | 3,661 | ||||||
| Trade Accounts Payable | 655,933 | 575,667 | ||||||
| Income Taxes | 32,026 | 29,835 | ||||||
| Other Accrued Liabilities | 424,408 | 338,352 | ||||||
| Total Current Liabilities | 1,670,424 | 1,359,909 | ||||||
| Long Term Debt, Net of Current Portion | 1,077,921 | 1,012,550 | ||||||
| Deferred Income Taxes | 241,037 | 208,928 | ||||||
| Other Long-Term Liabilities | 134,568 | 155,676 | ||||||
| Total Liabilities | 3,123,950 | 2,737,063 | ||||||
| Stockholders’ Equity | 1,055,848 | 1,106,452 | ||||||
| Total Liabilities and Stockholders’ Equity | $ | 4,179,798 | $ | 3,843,515 | ||||
| 6 |
THE VALSPAR CORPORATION
SELECTED INFORMATION (UNAUDITED AND SUBJECT TO RECLASSIFICATION)
For the Three and Nine Months Ended July 25, 2014 and July 26, 2013
(Dollars in thousands)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| July 25, | July 26, | July 25, | July 26, | |||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| Depreciation and Amortization | $ | 21,618 | $ | 19,851 | $ | 74,252 | $ | 62,028 | ||||||||
| Capital Expenditures | 25,259 | 37,206 | 75,880 | 67,311 | ||||||||||||
| Dividends Paid | 21,706 | 20,186 | 65,886 | 61,306 | ||||||||||||
| 7 |
THE VALSPAR CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)
For the Three Months Ended July 25, 2014 and July 26, 2013
(Dollars in thousands, except per share amounts)
The following information provides reconciliations of non-GAAP financial measures from operations presented in the accompanying news release to the most comparable financial measures calculated and presented in accordance with accounting principles generally accepted in the U.S. (“GAAP”). The company has provided non-GAAP financial measures, which are not calculated or presented in accordance with GAAP, as information supplemental and in addition to the financial measures presented in the accompanying news release that are calculated and presented in accordance with GAAP. Such non-GAAP financial measures should not be considered superior to, as a substitute for, or as an alternative to, and should be considered in conjunction with, the GAAP financial measures presented in the news release. The non-GAAP financial measures in the accompanying news release may differ from similar measures used by other companies. The following tables reconcile gross profit, operating expense, earning before interest and taxes (EBIT), net income, net income per common share - diluted, and diluted earnings per share (EPS) guidance for the periods presented (GAAP financial measures) to adjusted gross profit, adjusted operating expense, adjusted earning before interest and taxes (EBIT), adjusted net income, adjusted net income per common share - diluted, and adjusted diluted earnings per share (EPS) guidance (non-GAAP financial measures) for the periods presented.
| Three Months Ended | Three Months Ended | |||||||||||||||
| July 25, 2014 | July 26, 2013 | |||||||||||||||
| Dollars | % of Net Sales | Dollars | % of Net Sales | |||||||||||||
| Coatings Segment | ||||||||||||||||
| Earnings Before Interest and Taxes (EBIT) | $ | 114,874 | 17.2% | $ | 99,026 | 17.3% | ||||||||||
| Restructuring Charges - Cost of Sales | 2,776 | 0.4% | 163 | 0.0% | ||||||||||||
| Restructuring Charges - Operating Expense | 4,369 | 0.7% | 1,079 | 0.2% | ||||||||||||
| Acquisition-related Charges - Operating Expense | — | 0.0% | 758 | 0.1% | ||||||||||||
| Adjusted EBIT | $ | 122,019 | 18.3% | $ | 101,026 | 17.6% | ||||||||||
| Paints Segment | ||||||||||||||||
| EBIT | $ | 43,224 | 9.1% | $ | 50,761 | 11.2% | ||||||||||
| Restructuring Charges - Cost of Sales | 499 | 0.1% | 1,489 | 0.3% | ||||||||||||
| Restructuring Charges - Operating Expense | (19 | ) | 0.0% | 1 | 0.0% | |||||||||||
| Adjusted EBIT | $ | 43,704 | 9.2% | $ | 52,251 | 11.5% | ||||||||||
| Other and Administrative | ||||||||||||||||
| EBIT | $ | (1,381 | ) | (2.2% | ) | $ | 4,722 | 7.7% | ||||||||
| Restructuring Charges - Cost of Sales | 27 | 0.0% | — | 0.0% | ||||||||||||
| Restructuring Charges - Operating Expense | 1 | 0.0% | (242 | ) | (0.4% | ) | ||||||||||
| Adjusted EBIT | $ | (1,353 | ) | (2.2% | ) | $ | 4,480 | 7.3% | ||||||||
| Total | ||||||||||||||||
| Gross Profit | $ | 416,692 | 34.6% | $ | 369,361 | 33.9% | ||||||||||
| Restructuring Charges - Cost of Sales | 3,302 | 0.3% | 1,652 | 0.2% | ||||||||||||
| Adjusted Gross Profit | $ | 419,994 | 34.9% | $ | 371,013 | 34.1% | ||||||||||
| Operating Expenses | $ | 258,163 | 21.5% | $ | 213,787 | 19.6% | ||||||||||
| Restructuring Charges - Operating Expense | (4,351 | ) | (0.4% | ) | (838 | ) | (0.1% | ) | ||||||||
| Acquisition-related Charges - Operating Expense | — | 0.0% | (758 | ) | (0.1% | ) | ||||||||||
| Adjusted Operating Expenses | $ | 253,812 | 21.1% | $ | 212,191 | 19.5% | ||||||||||
| EBIT | $ | 156,717 | 13.0% | $ | 154,509 | 14.2% | ||||||||||
| Restructuring Charges - Total | 7,653 | 0.6% | 2,490 | 0.2% | ||||||||||||
| Acquisition-related Charges - Operating Expense | — | 0.0% | 758 | 0.1% | ||||||||||||
| Adjusted EBIT | $ | 164,370 | 13.7% | $ | 157,757 | 14.5% | ||||||||||
| Net Income | $ | 97,833 | $ | 93,808 | ||||||||||||
| After Tax Restructuring Charges - Total | 5,616 | 1,853 | ||||||||||||||
| After Tax Acquisition-related Charges - Total | — | 758 | ||||||||||||||
| Adjusted Net Income | $ | 103,449 | $ | 96,419 | ||||||||||||
| Net Income per Common Share - diluted | $ | 1.14 | $ | 1.04 | ||||||||||||
| Restructuring Charges - Total | 0.07 | 0.02 | ||||||||||||||
| Acquisition-related Charges - Total | — | 0.01 | ||||||||||||||
| Adjusted Net Income per Common Share - diluted | $ | 1.21 | $ | 1.07 | ||||||||||||
| 8 |
THE VALSPAR CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)
For the Nine Months Ended July 25, 2014 and July 26, 2013
(Dollars in thousands, except per share amounts)
| Nine Months Ended | Nine Months Ended | |||||||||||||||
| July 25, 2014 | July 26, 2013 | |||||||||||||||
| Dollars | % of Net Sales | Dollars | % of Net Sales | |||||||||||||
| Coatings Segment | ||||||||||||||||
| Earnings Before Interest and Taxes (EBIT) | $ | 282,896 | 15.6% | $ | 253,602 | 15.8% | ||||||||||
| Restructuring Charges - Cost of Sales | 9,509 | 0.5% | 2,577 | 0.2% | ||||||||||||
| Restructuring Charges - Operating Expense | 8,895 | 0.5% | 1,390 | 0.1% | ||||||||||||
| Acquisition-related Charges - Operating Expense | — | 0.0% | 758 | 0.0% | ||||||||||||
| Adjusted EBIT | $ | 301,300 | 16.6% | $ | 258,327 | 16.1% | ||||||||||
| Paints Segment | ||||||||||||||||
| EBIT | $ | 124,644 | 9.5% | $ | 126,206 | 10.3% | ||||||||||
| Restructuring Charges - Cost of Sales | 8,102 | 0.6% | 5,744 | 0.5% | ||||||||||||
| Restructuring Charges - Operating Expense | 1,533 | 0.1% | 1,933 | 0.2% | ||||||||||||
| Adjusted EBIT | $ | 134,279 | 10.3% | $ | 133,883 | 11.0% | ||||||||||
| Other and Administrative | ||||||||||||||||
| EBIT | $ | (12,878 | ) | (7.8% | ) | $ | (2,225 | ) | (1.3% | ) | ||||||
| Restructuring Charges - Cost of Sales | 66 | 0.0% | — | 0.0% | ||||||||||||
| Restructuring Charges - Operating Expense | 210 | 0.1% | 166 | 0.1% | ||||||||||||
| Adjusted EBIT | $ | (12,602 | ) | (7.7% | ) | $ | (2,059 | ) | (1.2% | ) | ||||||
| Total | ||||||||||||||||
| Gross Profit | $ | 1,116,503 | 33.9% | $ | 1,002,265 | 33.5% | ||||||||||
| Restructuring Charges - Cost of Sales | 17,677 | 0.5% | 8,321 | 0.3% | ||||||||||||
| Adjusted Gross Profit | $ | 1,134,180 | 34.5% | $ | 1,010,586 | 33.7% | ||||||||||
| Operating Expenses | $ | 719,340 | 21.9% | $ | 622,640 | 20.8% | ||||||||||
| Restructuring Charges - Operating Expense | (10,638 | ) | (0.3% | ) | (3,489 | ) | (0.1% | ) | ||||||||
| Acquisition-related Charges - Operating Expense | — | 0.0% | (758 | ) | 0.0% | |||||||||||
| Adjusted Operating Expenses | $ | 708,702 | 21.5% | $ | 618,393 | 20.6% | ||||||||||
| EBIT | $ | 394,662 | 12.0% | $ | 377,583 | 12.6% | ||||||||||
| Restructuring Charges - Total | 28,315 | 0.9% | 11,810 | 0.4% | ||||||||||||
| Acquisition-related Charges - Total | — | 0.0% | 758 | 0.0% | ||||||||||||
| Adjusted EBIT | $ | 422,977 | 12.9% | $ | 390,151 | 13.0% | ||||||||||
| Net Income | $ | 237,345 | $ | 225,745 | ||||||||||||
| After Tax Restructuring Charges - Total | 19,858 | 8,268 | ||||||||||||||
| After Tax Acquisition-related Charges - Total | — | 758 | ||||||||||||||
| Adjusted Net Income | $ | 257,203 | $ | 234,771 | ||||||||||||
| Net Income per Common Share - diluted | $ | 2.74 | $ | 2.48 | ||||||||||||
| Restructuring Charges - Total | 0.23 | 0.09 | ||||||||||||||
| Acquisition-related Charges - Total | — | 0.01 | ||||||||||||||
| Adjusted Net Income per Common Share - diluted | $ | 2.97 | $ | 2.58 | ||||||||||||
| Reconciliation of Fiscal 2014 Annual Adjusted Diluted EPS Guidance | ||||||||||||||||
| Diluted EPS Guidance | $ | 3.78 - $3.83 | ||||||||||||||
| Restructuring Charges | 0.27 - 0.32 | |||||||||||||||
| Adjusted Diluted EPS Guidance | $ | 4.05 - $4.15 | ||||||||||||||
| 9 |