Supplemental Financial Data (Unaudited)

Quarterly financial information

  • In the first, second and third quarters of 2012, the company recorded pretax losses on debt extinguishment of $7.2 million, $0.3 million, and $23.1 million, respectively.
  • In the first, second, third and fourth quarters of 2011, the company recorded pretax losses on debt extinguishment of $31.8 million, $45.7 million, $0.1 million, and $7.6 million, respectively.
  • The individual quarterly per-share amounts may not total to the per-share amount for the full year because of accounting rules governing the computation of earnings per share.
  • Market prices per share are as quoted on the New York Stock Exchange composite listing.

Five-year summary of selected financial data

  • *Includes pretax losses on debt extinguishment of $30.6 million and $85.2 million for the years ended December 31, 2012 and 2011, respectively.
  • **Includes pretax cost-reduction and other charges of $103.1 million for the year ended December 31, 2008.

Reconciliation of Selected GAAP to NON-GAAP Measures

The company reports its results in accordance with Generally Accepted Accounting Principles (GAAP) in the United States. However, in an effort to provide investors with additional perspective regarding the company's results as determined by GAAP, the company also discusses non-GAAP information which management believes provides useful information to investors. Management uses supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and assess operational alternatives. These non-GAAP measures may include constant currency and non-GAAP diluted earnings per share.

Our non-GAAP measures are not intended to be considered in isolation or as substitutes for results determined in accordance with GAAP and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP.

Constant currency -- The company refers to growth rates at constant currency or adjusting for currency so that the business results can be viewed without the impact of fluctuations in foreign currency exchange rates to facilitate comparisons of the company's business performance from one period to another. Constant currency for revenue is calculated by retranslating current and prior period results at a consistent rate. This approach is based on the pricing currency for each country which is typically the functional currency. Generally, when the dollar either strengthens or weakens against other currencies, the growth at constant currency rates will be higher or lower, respectively, than growth reported at actual exchange rates.

Non-GAAP diluted earnings per share -- For the full years of 2012 and 2011, the company recorded debt reduction charges of $30.6 million and $85.2 million, respectively, and pension expense of $105.4 million and $28.0 million, respectively. In addition, for full year 2011 the company incurred a charge of $8.9 million related to a Brazil non-income tax case. In an effort to provide investors with a perspective on the company's earnings without these charges, they are excluded from the non-GAAP diluted earnings per share calculations.