UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) January 26, 2018
Air Products and Chemicals, Inc.
(Exact Name of Registrant as Specified in Charter)
Delaware | 1-4534 | 23-1274455 | ||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||
7201 Hamilton Boulevard, Allentown, Pennsylvania | 18195-1501 | |
(Address of Principal Executive Offices) | (Zip Code) | |
(610) 481-4911
Registrant’s telephone number, including area code
not applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (See General Instruction A.2. below):
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company | ¨ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 7.01 Regulation FD Disclosure
Air Products and Chemicals, Inc. (the “Company”) is making available supplemental financial information reflecting the Company’s retrospective application of the presentation requirements set forth in Accounting Standards Update ("ASU") No. 2017-07, "Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost." The Company elected to early adopt this guidance in the first quarter of fiscal year 2018 and has applied the income statement presentation requirements retrospectively to all periods presented.
The supplemental information is included in Exhibit 99.1 to this report and is incorporated herein by reference. The information is presented for illustrative and informational purposes only and will be available on the Company’s website at www.airproducts.com.
Exhibit 99.1 includes the presentation of financial measures on a non-GAAP (“adjusted”) basis as well as a reconciliation to the most directly comparable financial measure calculated in accordance with U.S. generally accepted accounting principles (GAAP). These non-GAAP financial measures are not meant to be considered in isolation or as a substitute for the most directly comparable financial measure calculated in accordance with GAAP.
The information in this report is being furnished, not filed. Accordingly, the information in items 7.01 and 9.01 of this report will not be incorporated by reference into any registration statement filed by the Company under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference. The furnishing of the information in this report is not intended to, and does not, constitute a determination or admission by the Company that the information in this report is material or complete, or that investors should consider this information before making an investment decision with respect to any security of the Company or its affiliates.
Item 9.01 Financial Statements and Exhibits
d. Exhibits
Exhibit No. | Description |
Supplemental financial information | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Air Products and Chemicals, Inc. | |||
(Registrant) | |||
Date: | January 26, 2018 | By: | /s/ M. Scott Crocco |
M. Scott Crocco | |||
Executive Vice President and Chief Financial Officer | |||
Exhibit 99.1
IMPACTS OF ADOPTION OF ASU 2017-07
Air Products and Chemicals, Inc. (the “Company”) is filing this exhibit ("the Exhibit") to update certain financial information to reflect the adoption of Accounting Standards Update (ASU) No. 2017-07, "Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost." The Company elected to early adopt this guidance in the first quarter of fiscal year 2018 and has applied the income statement presentation requirements retrospectively to all periods presented. The Company applied the practical expedient to use the amounts disclosed in its retirement benefits note for the prior comparative periods as the estimation basis for applying the retrospective presentation requirements.
Under the amended guidance, the service cost component of the net periodic benefit cost continues to be presented in the same line items as other compensation costs arising from services rendered by employees during the period. The other components of net periodic benefit cost (e.g., interest cost, expected return on plan assets, and amortization of actuarial gains or losses) have been removed from operating income and are now presented in the consolidated income statements in "Other non-operating income (expense), net."
This Exhibit includes the presentation of financial measures on a non-GAAP (“adjusted”) basis as well as a reconciliation to the most directly comparable financial measure calculated in accordance with U.S. generally accepted accounting principles (GAAP). These non-GAAP financial measures are not meant to be considered in isolation or as a substitute for the most directly comparable financial measure calculated in accordance with GAAP.
The presentation of non-GAAP measures is intended to provide useful information to evaluate the performance of the business because such measures, when viewed together with our financial results computed in accordance with GAAP, provide a more complete understanding of the factors and trends affecting our historical financial performance and projected future results. In evaluating these financial measures, the reader should be aware that we may incur expenses similar to those eliminated in this presentation in the future. Investors should also consider the limitations associated with these non-GAAP measures, including the potential lack of comparability of these measures from one company to another.
We define adjusted EBITDA as income from continuing operations (including noncontrolling interests) excluding certain disclosed items, which the Company does not believe to be indicative of underlying business trends, before interest expense, other non-operating income (expense), net, income tax provision, and depreciation and amortization expense. Adjusted EBITDA provides a useful metric for management to assess operating performance. Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by sales.
1
UNAUDITED SUMMARY OF FINANCIAL INFORMATION
(Millions of dollars unless otherwise indicated)
Consolidated
Adjusted for Adoption of ASU 2017-07
FY 2017 | FY2017 | FY 2016 | ||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Total | Total | |||||||||||||||||||
GAAP Basis | ||||||||||||||||||||||||
Operating income | $328.3 | $395.6 | $258.7 | $457.4 | $1,440.0 | $1,535.1 | ||||||||||||||||||
Operating margin | 17.4 | % | 20.0 | % | 12.2 | % | 20.8 | % | 17.6 | % | 20.5 | % | ||||||||||||
Other non-operating income (expense), net | ($.2 | ) | $5.3 | $3.7 | $7.8 | $16.6 | ($5.4 | ) | ||||||||||||||||
Non-GAAP Basis | ||||||||||||||||||||||||
Adjusted operating income | $410.8 | $405.9 | $463.5 | $493.6 | $1,773.8 | $1,620.2 | ||||||||||||||||||
Adjusted operating margin | 21.8 | % | 20.5 | % | 21.8 | % | 22.4 | % | 21.7 | % | 21.6 | % | ||||||||||||
Adjusted EBITDA | $654.9 | $651.9 | $723.0 | $769.4 | $2,799.2 | $2,621.8 | ||||||||||||||||||
Adjusted EBITDA margin | 34.8 | % | 32.9 | % | 34.1 | % | 34.9 | % | 34.2 | % | 34.9 | % | ||||||||||||
Adjusted other non-operating income (expense), net | ($2.5 | ) | $9.4 | $9.2 | $8.7 | $24.8 | ($.3 | ) | ||||||||||||||||
As Reported Before Adoption of ASU 2017-07
FY 2017 | FY2017 | FY 2016 | ||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Total | Total | |||||||||||||||||||
GAAP Basis | ||||||||||||||||||||||||
Operating income | $328.1 | $391.2 | $252.6 | $455.7 | $1,427.6 | $1,529.7 | ||||||||||||||||||
Operating margin | 17.4 | % | 19.8 | % | 11.9 | % | 20.7 | % | 17.4 | % | 20.4 | % | ||||||||||||
Other non-operating income (expense), net | $— | $9.7 | $9.8 | $9.5 | $29.0 | $— | ||||||||||||||||||
Non-GAAP Basis | ||||||||||||||||||||||||
Adjusted operating income | $408.3 | $405.6 | $462.9 | $492.8 | $1,769.6 | $1,619.9 | ||||||||||||||||||
Adjusted operating margin | 21.7 | % | 20.5 | % | 21.8 | % | 22.4 | % | 21.6 | % | 21.6 | % | ||||||||||||
Adjusted EBITDA | $652.4 | $651.6 | $722.4 | $768.6 | $2,795.0 | $2,621.5 | ||||||||||||||||||
Adjusted EBITDA margin | 34.7 | % | 32.9 | % | 34.0 | % | 34.9 | % | 34.1 | % | 34.9 | % | ||||||||||||
Adjusted other non-operating income (expense), net | $— | $9.7 | $9.8 | $9.5 | $29.0 | $— | ||||||||||||||||||
Changes Attributable to Adoption of ASU 2017-07 (Adjusted v. As Reported)
FY 2017 | FY2017 | FY 2016 | ||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Total | Total | |||||||||||||||||||
GAAP Basis | ||||||||||||||||||||||||
Operating income | $.2 | $4.4 | $6.1 | $1.7 | $12.4 | $5.4 | ||||||||||||||||||
Operating margin | — | 20 | bp | 30 | bp | 10 | bp | 20 | bp | 10 | bp | |||||||||||||
Other non-operating income (expense), net | ($.2 | ) | ($4.4 | ) | ($6.1 | ) | ($1.7 | ) | ($12.4 | ) | ($5.4 | ) | ||||||||||||
Non-GAAP Basis | ||||||||||||||||||||||||
Adjusted operating income | $2.5 | $.3 | $.6 | $.8 | $4.2 | $.3 | ||||||||||||||||||
Adjusted operating margin | 10 | bp | — | — | — | 10 | bp | — | ||||||||||||||||
Adjusted EBITDA | $2.5 | $.3 | $.6 | $.8 | $4.2 | $.3 | ||||||||||||||||||
Adjusted EBITDA margin | 10 | bp | — | 10 | bp | — | 10 | bp | — | |||||||||||||||
Adjusted other non-operating income (expense), net | ($2.5 | ) | ($.3 | ) | ($.6 | ) | ($.8 | ) | ($4.2 | ) | ($.3 | ) | ||||||||||||
2
Segments
Adjusted for Adoption of ASU 2017-07
FY 2017 | FY 2017 | FY 2016 | ||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Total | Total | |||||||||||||||||||
Operating Income | ||||||||||||||||||||||||
Industrial Gases – Americas | $223.3 | $223.2 | $234.9 | $264.7 | $946.1 | $891.3 | ||||||||||||||||||
Industrial Gases – EMEA | 90.0 | 88.6 | 96.2 | 120.7 | 395.5 | 387.0 | ||||||||||||||||||
Industrial Gases – Asia | 118.4 | 112.3 | 149.5 | 152.4 | 532.6 | 452.8 | ||||||||||||||||||
Industrial Gases – Global | 8.2 | 22.7 | 27.8 | 12.4 | 71.1 | (21.5 | ) | |||||||||||||||||
Corporate and other | (29.1 | ) | (40.9 | ) | (44.9 | ) | (56.6 | ) | (171.5 | ) | (89.4 | ) | ||||||||||||
Segment Total | $410.8 | $405.9 | $463.5 | $493.6 | $1,773.8 | $1,620.2 | ||||||||||||||||||
Operating Margin | ||||||||||||||||||||||||
Industrial Gases – Americas | 25.8 | % | 25.1 | % | 25.3 | % | 27.8 | % | 26.0 | % | 26.7 | % | ||||||||||||
Industrial Gases – EMEA | 22.5 | % | 21.4 | % | 21.3 | % | 23.4 | % | 22.2 | % | 22.7 | % | ||||||||||||
Industrial Gases – Asia | 27.0 | % | 25.8 | % | 27.8 | % | 27.6 | % | 27.1 | % | 26.3 | % | ||||||||||||
Segment Total | 21.8 | % | 20.5 | % | 21.8 | % | 22.4 | % | 21.7 | % | 21.6 | % | ||||||||||||
Adjusted EBITDA | ||||||||||||||||||||||||
Industrial Gases – Americas | $349.8 | $352.2 | $366.0 | $400.6 | $1,468.6 | $1,387.6 | ||||||||||||||||||
Industrial Gases – EMEA | 141.7 | 138.5 | 157.0 | 182.5 | 619.7 | 609.2 | ||||||||||||||||||
Industrial Gases – Asia | 178.6 | 174.5 | 211.6 | 224.6 | 789.3 | 708.5 | ||||||||||||||||||
Industrial Gases – Global | 10.5 | 24.4 | 30.4 | 15.6 | 80.9 | (13.6 | ) | |||||||||||||||||
Corporate and other | (25.7 | ) | (37.7 | ) | (42.0 | ) | (53.9 | ) | (159.3 | ) | (69.9 | ) | ||||||||||||
Segment Total | $654.9 | $651.9 | $723.0 | $769.4 | $2,799.2 | $2,621.8 | ||||||||||||||||||
Adjusted EBITDA Margin | ||||||||||||||||||||||||
Industrial Gases – Americas | 40.5 | % | 39.6 | % | 39.4 | % | 42.0 | % | 40.4 | % | 41.5 | % | ||||||||||||
Industrial Gases – EMEA | 35.5 | % | 33.4 | % | 34.8 | % | 35.5 | % | 34.8 | % | 35.7 | % | ||||||||||||
Industrial Gases – Asia | 40.7 | % | 40.0 | % | 39.3 | % | 40.7 | % | 40.2 | % | 41.2 | % | ||||||||||||
Segment Total | 34.8 | % | 32.9 | % | 34.1 | % | 34.9 | % | 34.2 | % | 34.9 | % | ||||||||||||
Below is a reconciliation of segment total operating income to consolidated operating income:
FY2017 | FY 2017 | FY 2016 | ||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Total | Total | |||||||||||||||||||
Segment total | $410.8 | $405.9 | $463.5 | $493.6 | $1,773.8 | $1,620.2 | ||||||||||||||||||
Business separation costs | (32.5 | ) | — | — | — | (32.5 | ) | (50.6 | ) | |||||||||||||||
Business restructuring and cost reduction actions | (50.0 | ) | (10.3 | ) | (42.7 | ) | (48.4 | ) | (151.4 | ) | (34.5 | ) | ||||||||||||
Goodwill and intangible asset impairment charge | — | — | (162.1 | ) | — | (162.1 | ) | — | ||||||||||||||||
Gain on land sales | — | — | — | 12.2 | 12.2 | — | ||||||||||||||||||
Consolidated Total | $328.3 | $395.6 | $258.7 | $457.4 | $1,440.0 | $1,535.1 | ||||||||||||||||||
3
As Reported Before Adoption of ASU 2017-07
FY 2017 | FY 2017 | FY 2016 | ||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Total | Total | |||||||||||||||||||
Operating Income | ||||||||||||||||||||||||
Industrial Gases – Americas | $223.8 | $224.5 | $236.2 | $266.1 | $950.6 | $893.2 | ||||||||||||||||||
Industrial Gases – EMEA | 88.0 | 86.5 | 94.1 | 118.5 | 387.1 | 384.6 | ||||||||||||||||||
Industrial Gases – Asia | 118.1 | 112.0 | 149.1 | 152.0 | 531.2 | 451.0 | ||||||||||||||||||
Industrial Gases – Global | 8.2 | 22.8 | 27.9 | 12.4 | 71.3 | (21.3 | ) | |||||||||||||||||
Corporate and other | (29.8 | ) | (40.2 | ) | (44.4 | ) | (56.2 | ) | (170.6 | ) | (87.6 | ) | ||||||||||||
Segment Total | $408.3 | $405.6 | $462.9 | $492.8 | $1,769.6 | $1,619.9 | ||||||||||||||||||
Operating Margin | ||||||||||||||||||||||||
Industrial Gases – Americas | 25.9 | % | 25.2 | % | 25.4 | % | 27.9 | % | 26.1 | % | 26.7 | % | ||||||||||||
Industrial Gases – EMEA | 22.0 | % | 20.9 | % | 20.8 | % | 23.0 | % | 21.7 | % | 22.6 | % | ||||||||||||
Industrial Gases – Asia | 26.9 | % | 25.7 | % | 27.7 | % | 27.5 | % | 27.0 | % | 26.2 | % | ||||||||||||
Segment Total | 21.7 | % | 20.5 | % | 21.8 | % | 22.4 | % | 21.6 | % | 21.6 | % | ||||||||||||
Adjusted EBITDA | ||||||||||||||||||||||||
Industrial Gases – Americas | $350.3 | $353.5 | $367.3 | $402.0 | $1,473.1 | $1,389.5 | ||||||||||||||||||
Industrial Gases – EMEA | 139.7 | 136.4 | 154.9 | 180.3 | 611.3 | 606.8 | ||||||||||||||||||
Industrial Gases – Asia | 178.3 | 174.2 | 211.2 | 224.2 | 787.9 | 706.7 | ||||||||||||||||||
Industrial Gases – Global | 10.5 | 24.5 | 30.5 | 15.6 | 81.1 | (13.4 | ) | |||||||||||||||||
Corporate and other | (26.4 | ) | (37.0 | ) | (41.5 | ) | (53.5 | ) | (158.4 | ) | (68.1 | ) | ||||||||||||
Segment Total | $652.4 | $651.6 | $722.4 | $768.6 | $2,795.0 | $2,621.5 | ||||||||||||||||||
Adjusted EBITDA Margin | ||||||||||||||||||||||||
Industrial Gases – Americas | 40.5 | % | 39.7 | % | 39.5 | % | 42.2 | % | 40.5 | % | 41.6 | % | ||||||||||||
Industrial Gases – EMEA | 35.0 | % | 32.9 | % | 34.3 | % | 35.0 | % | 34.3 | % | 35.6 | % | ||||||||||||
Industrial Gases – Asia | 40.7 | % | 40.0 | % | 39.2 | % | 40.6 | % | 40.1 | % | 41.1 | % | ||||||||||||
Segment Total | 34.7 | % | 32.9 | % | 34.0 | % | 34.9 | % | 34.1 | % | 34.9 | % | ||||||||||||
4
Changes Attributable to Adoption of ASU 2017-07 (Adjusted vs. As Reported)
FY 2017 | FY 2017 | FY 2016 | ||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Total | Total | |||||||||||||||||||
Operating Income | ||||||||||||||||||||||||
Industrial Gases – Americas | ($.5 | ) | ($1.3 | ) | ($1.3 | ) | ($1.4 | ) | ($4.5 | ) | ($1.9 | ) | ||||||||||||
Industrial Gases – EMEA | 2.0 | 2.1 | 2.1 | 2.2 | 8.4 | 2.4 | ||||||||||||||||||
Industrial Gases – Asia | .3 | .3 | .4 | .4 | 1.4 | 1.8 | ||||||||||||||||||
Industrial Gases – Global | — | (.1 | ) | (.1 | ) | — | (.2 | ) | (.2 | ) | ||||||||||||||
Corporate and other | .7 | (.7 | ) | (.5 | ) | (.4 | ) | (.9 | ) | (1.8 | ) | |||||||||||||
Segment Total | $2.5 | $.3 | $.6 | $.8 | $4.2 | $.3 | ||||||||||||||||||
Operating Margin | ||||||||||||||||||||||||
Industrial Gases – Americas | (10 | ) bp | (10 | ) bp | (10 | ) bp | (10 | ) bp | (10 | ) bp | — | |||||||||||||
Industrial Gases – EMEA | 50 | bp | 50 | bp | 50 | bp | 40 | bp | 50 | bp | 10 | bp | ||||||||||||
Industrial Gases – Asia | 10 | bp | 10 | bp | 10 | bp | 10 | bp | 10 | bp | 10 | bp | ||||||||||||
Segment Total | 10 | bp | — | — | — | 10 | bp | — | ||||||||||||||||
Adjusted EBITDA | ||||||||||||||||||||||||
Industrial Gases – Americas | ($.5 | ) | ($1.3 | ) | ($1.3 | ) | ($1.4 | ) | ($4.5 | ) | ($1.9 | ) | ||||||||||||
Industrial Gases – EMEA | 2.0 | 2.1 | 2.1 | 2.2 | 8.4 | 2.4 | ||||||||||||||||||
Industrial Gases – Asia | .3 | .3 | .4 | .4 | 1.4 | 1.8 | ||||||||||||||||||
Industrial Gases – Global | — | (.1 | ) | (.1 | ) | — | (.2 | ) | (.2 | ) | ||||||||||||||
Corporate and other | .7 | (.7 | ) | (.5 | ) | (.4 | ) | (.9 | ) | (1.8 | ) | |||||||||||||
Segment Total | $2.5 | $.3 | $.6 | $.8 | $4.2 | $.3 | ||||||||||||||||||
Adjusted EBITDA Margin | ||||||||||||||||||||||||
Industrial Gases – Americas | — | (10 | ) bp | (10 | ) bp | (20 | ) bp | (10 | ) bp | (10 | ) bp | |||||||||||||
Industrial Gases – EMEA | 50 | bp | 50 | bp | 50 | bp | 50 | bp | 50 | bp | 10 | bp | ||||||||||||
Industrial Gases – Asia | — | — | 10 | bp | 10 | bp | 10 | bp | 10 | bp | ||||||||||||||
Segment Total | 10 | bp | — | 10 | bp | — | 10 | bp | — | |||||||||||||||
5
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Operating Income and Operating Margin
FY2017 | FY 2017 | FY 2016 | ||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Total | Total | |||||||||||||||||||
Operating income – GAAP | $328.3 | $395.6 | $258.7 | $457.4 | $1,440.0 | $1,535.1 | ||||||||||||||||||
Business separation costs | 32.5 | — | — | — | 32.5 | 50.6 | ||||||||||||||||||
Business restructuring and cost reduction actions | 50.0 | 10.3 | 42.7 | 48.4 | 151.4 | 34.5 | ||||||||||||||||||
Goodwill and intangible asset impairment charge | — | — | 162.1 | — | 162.1 | — | ||||||||||||||||||
Gain on previously held equity interest | — | — | — | — | — | — | ||||||||||||||||||
Gain on land sales | — | — | — | (12.2 | ) | (12.2 | ) | — | ||||||||||||||||
Operating income – Non-GAAP Measure | $410.8 | $405.9 | $463.5 | $493.6 | $1,773.8 | $1,620.2 | ||||||||||||||||||
FY2017 | FY 2017 | FY 2016 | ||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Total | Total | |||||||||||||
Operating margin – GAAP | 17.4 | % | 20.0 | % | 12.2 | % | 20.8 | % | 17.6 | % | 20.5 | % | ||||||
Business separation costs | 1.7 | % | — | % | — | % | — | % | .4 | % | .7 | % | ||||||
Business restructuring and cost reduction actions | 2.7 | % | .5 | % | 2.0 | % | 2.2 | % | 1.8 | % | .4 | % | ||||||
Goodwill and intangible asset impairment charge | — | % | — | % | 7.6 | % | — | % | 2.0 | % | — | % | ||||||
Gain on previously held equity interest | — | % | — | % | — | % | — | % | — | % | — | % | ||||||
Gain on land sales | — | % | — | % | — | % | (.6 | )% | (.1 | )% | — | % | ||||||
Operating margin – Non-GAAP Measure | 21.8 | % | 20.5 | % | 21.8 | % | 22.4 | % | 21.7 | % | 21.6 | % | ||||||
Other Non-Operating Income (Expense), Net
The following table reconciles "Other non-operating income (expense), net" for the impact of pension related non-GAAP adjustments that were presented in operating income prior to the adoption of the guidance:
FY2017 | FY 2017 | FY 2016 | ||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Total | Total | |||||||||||||||||||
Other non-operating income (expense), net – GAAP | ($.2 | ) | $5.3 | $3.7 | $7.8 | $16.6 | ($5.4 | ) | ||||||||||||||||
Business separation costs | (2.3 | ) | — | — | — | (2.3 | ) | — | ||||||||||||||||
Pension settlement loss | — | 4.1 | 5.5 | .9 | 10.5 | 5.1 | ||||||||||||||||||
Other non-operating income (expense), net – Non-GAAP Measure | ($2.5 | ) | $9.4 | $9.2 | $8.7 | $24.8 | ($.3 | ) | ||||||||||||||||
6
Adjusted EBITDA
FY2017 | FY 2017 | FY 2016 | ||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Total | Total | |||||||||||||||||||
Income from Continuing Operations(A) | $258.2 | $310.1 | $106.4 | $480.5 | $1,155.2 | $1,122.0 | ||||||||||||||||||
Add: Interest expense | 29.5 | 30.5 | 29.8 | 30.8 | 120.6 | 115.2 | ||||||||||||||||||
Less: Other non-operating income (expense), net | (.2 | ) | 5.3 | 3.7 | 7.8 | 16.6 | (5.4 | ) | ||||||||||||||||
Add: Income tax provision | 78.4 | 94.5 | 89.3 | (1.3 | ) | 260.9 | 432.6 | |||||||||||||||||
Add: Depreciation and amortization | 206.1 | 211.8 | 216.9 | 231.0 | 865.8 | 854.6 | ||||||||||||||||||
Add: Business separation costs | 32.5 | — | — | — | 32.5 | 50.6 | ||||||||||||||||||
Add: Business restructuring and cost reduction actions | 50.0 | 10.3 | 42.7 | 48.4 | 151.4 | 34.5 | ||||||||||||||||||
Add: Goodwill and intangible asset impairment charge | — | — | 162.1 | — | 162.1 | — | ||||||||||||||||||
Less: Gain on previously held equity interest | — | — | — | — | — | — | ||||||||||||||||||
Less: Gain on land sales | — | — | — | 12.2 | 12.2 | — | ||||||||||||||||||
Add: Equity method investment impairment charge | — | — | 79.5 | — | 79.5 | — | ||||||||||||||||||
Add: Loss on extinguishment of debt | — | — | — | — | — | 6.9 | ||||||||||||||||||
Adjusted EBITDA | $654.9 | $651.9 | $723.0 | $769.4 | $2,799.2 | $2,621.8 | ||||||||||||||||||
(A) Includes net income attributable to noncontrolling interests.
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