(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
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)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Emerging growth company |
Exhibit No. | Description | |
99.1 | ||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
Air Products and Chemicals, Inc. | ||
(Registrant) | ||
Date: 23 April 2020 | By: | /s/ M. Scott Crocco |
M. Scott Crocco | ||
Executive Vice President and Chief Financial Officer |
News Release | |
• | GAAP EPS of $2.21, including an estimated $0.06 to $0.08 negative impact from COVID-19, up 16 percent; GAAP net income, including discontinued operations, of $490 million, up 13 percent; and GAAP net income margin of 22.1 percent, up 230 basis points |
• | Adjusted EPS* of $2.04, including an estimated $0.06 to $0.08 negative impact from COVID-19, up six percent; adjusted EBITDA margin* of 40.3 percent, up 260 basis points |
• | Safely maintained plant operations and business continuity, provided essential products to customers, mobilized to meet urgent needs for medical oxygen, and continued to pursue and win new on-site opportunities during the COVID-19 pandemic |
• | Stable onsite business; Asia merchant volumes were impacted by COVID-19 but have since recovered; limited Americas and EMEA merchant volume impact during Q2 |
• | Secure financial position with robust cash flow, $2.2 billion cash on hand and modest net debt* of $1.1 billion as of March 31, 2020 |
• | Announced and closed on purchase of five operating hydrogen plants in the U.S. and began long-term hydrogen supply to PBF Energy |
• | Signed agreement to provide proprietary liquefied natural gas (LNG) technology, equipment and related process license and advisory services to the first onshore LNG project in the Republic of Mozambique |
• | Industrial Gases - Americas sales of $932 million decreased six percent, as three percent higher pricing and two percent higher volumes were more than offset by nine percent lower energy pass-through and two percent unfavorable currency. The higher volumes were primarily driven by strong hydrogen refinery demand in the U.S. Gulf Coast and Canada. Operating income of $268 million increased five percent, primarily driven by price and volume, and operating margin of 28.7 percent increased 290 basis points, with about 250 basis points of the margin improvement due to lower energy cost pass-through. Adjusted EBITDA of $425 million increased seven percent, primarily driven by price and volume, and adjusted EBITDA margin of 45.6 percent increased 540 basis points, with about 350 basis points of the margin improvement due to lower energy cost pass-through. |
• | Industrial Gases - EMEA sales of $493 million were flat with the prior year. Volumes increased four percent— primarily due to new projects and an acquisition, with solid refinery hydrogen demand—and higher pricing contributed three percent, offset by four percent lower energy pass-through and three percent unfavorable currency. Operating income of $125 million increased two percent, primarily driven by higher pricing, and operating margin of 25.3 percent increased 50 basis points. Adjusted EBITDA of $186 million increased two percent, primarily driven by higher pricing, and adjusted EBITDA margin of 37.7 percent increased 90 basis points. |
• | Industrial Gases - Asia sales of $658 million increased five percent. Volumes increased six percent, driven by new plants and a short-term contract, which more than offset the negative four percent impact from COVID-19 on merchant volumes. Pricing increased two percent, while currency had a negative three percent impact. Operating income of $209 million increased five percent, primarily on improved pricing, and operating margin of 31.8 percent declined 10 basis points. Adjusted EBITDA of $327 million increased 10 percent on improved volumes and pricing, and adjusted EBITDA margin of 49.7 percent increased 200 basis points. |
Three Months Ended | Six Months Ended | |||||||||||
31 March | 31 March | |||||||||||
(Millions of dollars, except for share and per share data) | 2020 | 2019 | 2020 | 2019 | ||||||||
Sales | $2,216.3 | $2,187.7 | $4,471.0 | $4,411.7 | ||||||||
Cost of sales | 1,460.1 | 1,474.7 | 2,946.7 | 3,018.7 | ||||||||
Facility closure | — | — | — | 29.0 | ||||||||
Selling and administrative | 201.7 | 190.0 | 403.4 | 379.6 | ||||||||
Research and development | 19.2 | 16.9 | 36.9 | 31.9 | ||||||||
Company headquarters relocation income (expense) | 33.8 | — | 33.8 | — | ||||||||
Other income (expense), net | 8.1 | 10.4 | 20.4 | 19.0 | ||||||||
Operating Income | 577.2 | 516.5 | 1,138.2 | 971.5 | ||||||||
Equity affiliates' income | 88.2 | 46.2 | 146.4 | 99.1 | ||||||||
Interest expense | 19.3 | 35.4 | 38.0 | 72.7 | ||||||||
Other non-operating income (expense), net | 7.1 | 13.7 | 16.2 | 32.2 | ||||||||
Income From Continuing Operations Before Taxes | 653.2 | 541.0 | 1,262.8 | 1,030.1 | ||||||||
Income tax provision | 148.5 | 107.5 | 269.2 | 239.6 | ||||||||
Income From Continuing Operations | 504.7 | 433.5 | 993.6 | 790.5 | ||||||||
Loss from discontinued operations, net of tax | (14.3 | ) | — | (14.3 | ) | — | ||||||
Net Income | 490.4 | 433.5 | 979.3 | 790.5 | ||||||||
Net income attributable to noncontrolling interests of continuing operations | 12.6 | 12.2 | 25.9 | 21.7 | ||||||||
Net Income Attributable to Air Products | $477.8 | $421.3 | $953.4 | $768.8 | ||||||||
Net Income Attributable to Air Products | ||||||||||||
Net income from continuing operations | $492.1 | $421.3 | $967.7 | $768.8 | ||||||||
Net loss from discontinued operations | (14.3 | ) | — | (14.3 | ) | — | ||||||
Net Income Attributable to Air Products | $477.8 | $421.3 | $953.4 | $768.8 | ||||||||
Basic Earnings Per Common Share Attributable to Air Products* | ||||||||||||
Basic earnings per share from continuing operations | $2.22 | $1.91 | $4.38 | $3.49 | ||||||||
Basic earnings per share from discontinued operations | (0.06 | ) | — | (0.06 | ) | — | ||||||
Basic Earnings Per Common Share Attributable to Air Products | $2.16 | $1.91 | $4.31 | $3.49 | ||||||||
Diluted Earnings Per Common Share Attributable to Air Products* | ||||||||||||
Diluted earnings per share from continuing operations | $2.21 | $1.90 | $4.36 | $3.48 | ||||||||
Diluted earnings per share from discontinued operations | (0.06 | ) | — | (0.06 | ) | — | ||||||
Diluted Earnings Per Common Share Attributable to Air Products | $2.15 | $1.90 | $4.29 | $3.48 | ||||||||
Weighted Average Common Shares – Basic (in millions) | 221.2 | 220.2 | 221.0 | 220.0 | ||||||||
Weighted Average Common Shares – Diluted (in millions) | 222.3 | 221.4 | 222.2 | 221.2 |
31 March | 30 September | |||||
(Millions of dollars) | 2020 | 2019 | ||||
Assets | ||||||
Current Assets | ||||||
Cash and cash items | $2,220.1 | $2,248.7 | ||||
Short-term investments | — | 166.0 | ||||
Trade receivables, net | 1,399.4 | 1,260.2 | ||||
Inventories | 399.7 | 388.3 | ||||
Prepaid expenses | 129.6 | 77.4 | ||||
Other receivables and current assets | 539.7 | 477.7 | ||||
Total Current Assets | 4,688.5 | 4,618.3 | ||||
Investment in net assets of and advances to equity affiliates | 1,314.6 | 1,276.2 | ||||
Plant and equipment, at cost | 23,005.2 | 22,333.7 | ||||
Less: accumulated depreciation | 12,381.5 | 11,996.1 | ||||
Plant and equipment, net | 10,623.7 | 10,337.6 | ||||
Goodwill, net | 785.3 | 797.1 | ||||
Intangible assets, net | 377.9 | 419.5 | ||||
Noncurrent lease receivables | 840.8 | 890.0 | ||||
Other noncurrent assets | 870.4 | 604.1 | ||||
Total Noncurrent Assets | 14,812.7 | 14,324.5 | ||||
Total Assets | $19,501.2 | $18,942.8 | ||||
Liabilities and Equity | ||||||
Current Liabilities | ||||||
Payables and accrued liabilities | $1,649.1 | $1,635.7 | ||||
Accrued income taxes | 90.4 | 86.6 | ||||
Short-term borrowings | 29.0 | 58.2 | ||||
Current portion of long-term debt | 38.4 | 40.4 | ||||
Total Current Liabilities | 1,806.9 | 1,820.9 | ||||
Long-term debt | 2,922.1 | 2,907.3 | ||||
Long-term debt – related party | 323.1 | 320.1 | ||||
Other noncurrent liabilities | 1,881.0 | 1,712.4 | ||||
Deferred income taxes | 844.4 | 793.8 | ||||
Total Noncurrent Liabilities | 5,970.6 | 5,733.6 | ||||
Total Liabilities | 7,777.5 | 7,554.5 | ||||
Air Products Shareholders’ Equity | 11,371.9 | 11,053.6 | ||||
Noncontrolling Interests | 351.8 | 334.7 | ||||
Total Equity | 11,723.7 | 11,388.3 | ||||
Total Liabilities and Equity | $19,501.2 | $18,942.8 |
Six Months Ended | ||||||
31 March | ||||||
(Millions of dollars) | 2020 | 2019 | ||||
Operating Activities | ||||||
Net income | $979.3 | $790.5 | ||||
Less: Net income attributable to noncontrolling interests of continuing operations | 25.9 | 21.7 | ||||
Net income attributable to Air Products | 953.4 | 768.8 | ||||
Loss from discontinued operations | 14.3 | — | ||||
Income from continuing operations attributable to Air Products | 967.7 | 768.8 | ||||
Adjustments to reconcile income to cash provided by operating activities: | ||||||
Depreciation and amortization | 583.9 | 520.1 | ||||
Deferred income taxes | 55.0 | 27.5 | ||||
Tax reform repatriation | — | 46.2 | ||||
Facility closure | — | 29.0 | ||||
Undistributed (earnings) losses of unconsolidated affiliates | (101.6 | ) | (27.2 | ) | ||
Gain on sale of assets and investments | (40.5 | ) | (2.3 | ) | ||
Share-based compensation | 26.9 | 21.2 | ||||
Noncurrent lease receivables | 47.1 | 47.6 | ||||
Other adjustments | 54.0 | (3.5 | ) | |||
Working capital changes that provided (used) cash, excluding effects of acquisitions: | ||||||
Trade receivables | (111.9 | ) | (55.4 | ) | ||
Inventories | (16.5 | ) | (14.2 | ) | ||
Other receivables | (0.7 | ) | 49.6 | |||
Payables and accrued liabilities | (111.8 | ) | (125.5 | ) | ||
Other working capital | (113.1 | ) | 3.9 | |||
Cash Provided by Operating Activities | 1,238.5 | 1,285.8 | ||||
Investing Activities | ||||||
Additions to plant and equipment | (930.6 | ) | (963.5 | ) | ||
Acquisitions, less cash acquired | — | (106.3 | ) | |||
Investment in and advances to unconsolidated affiliates | (22.7 | ) | (1.4 | ) | ||
Proceeds from sale of assets and investments | 68.0 | 3.8 | ||||
Purchases of investments | — | (5.3 | ) | |||
Proceeds from investments | 177.0 | 187.9 | ||||
Other investing activities | 1.9 | 2.7 | ||||
Cash Used for Investing Activities | (706.4 | ) | (882.1 | ) | ||
Financing Activities | ||||||
Payments on long-term debt | (3.4 | ) | (2.7 | ) | ||
Net decrease in commercial paper and short-term borrowings | (33.3 | ) | (6.6 | ) | ||
Dividends paid to shareholders | (511.7 | ) | (483.1 | ) | ||
Proceeds from stock option exercises | 20.2 | 45.4 | ||||
Other financing activities | (9.6 | ) | (12.8 | ) | ||
Cash Used for Financing Activities | (537.8 | ) | (459.8 | ) | ||
Effect of Exchange Rate Changes on Cash | (22.9 | ) | 0.7 | |||
Decrease in cash and cash items | (28.6 | ) | (55.4 | ) | ||
Cash and Cash items - Beginning of Year | 2,248.7 | 2,791.3 | ||||
Cash and Cash items - End of Period | $2,220.1 | $2,735.9 | ||||
Supplemental Cash Flow Information | ||||||
Cash paid for taxes (net of refunds) | $253.5 | $165.6 |
(Millions of dollars) | Industrial Gases – Americas | Industrial Gases – EMEA | Industrial Gases – Asia | Industrial Gases – Global | Corporate and other | Total | |||||||||||||
Three Months Ended 31 March 2020 | |||||||||||||||||||
Sales | $932.4 | $492.7 | $658.1 | $79.3 | $53.8 | $2,216.3 | |||||||||||||
Operating income (loss) | 268.0 | 124.6 | 209.1 | (19.8 | ) | (38.5 | ) | 543.4 | (A) | ||||||||||
Depreciation and amortization | 135.5 | 47.6 | 104.1 | 2.4 | 5.1 | 294.7 | |||||||||||||
Equity affiliates' income | 21.6 | 13.5 | 13.8 | 5.5 | — | 54.4 | (A) | ||||||||||||
Three Months Ended 31 March 2019 | |||||||||||||||||||
Sales | $991.7 | $494.4 | $625.4 | $53.8 | $22.4 | $2,187.7 | |||||||||||||
Operating income (loss) | 255.6 | 122.5 | 199.7 | (12.2 | ) | (49.1 | ) | 516.5 | (A) | ||||||||||
Depreciation and amortization | 124.9 | 46.3 | 84.9 | 2.0 | 4.0 | 262.1 | |||||||||||||
Equity affiliates' income | 17.8 | 13.3 | 13.8 | 1.3 | — | 46.2 | (A) |
Industrial Gases – Americas | Industrial Gases – EMEA | Industrial Gases – Asia | Industrial Gases – Global | Corporate and other | Total | ||||||||||||||
Six Months Ended 31 March 2020 | |||||||||||||||||||
Sales | $1,868.6 | $991.4 | $1,350.9 | $171.9 | $88.2 | $4,471.0 | |||||||||||||
Operating income (loss) | 525.2 | 245.1 | 437.6 | (16.2 | ) | (87.3 | ) | 1,104.4 | (A) | ||||||||||
Depreciation and amortization | 267.3 | 96.0 | 205.7 | 4.8 | 10.1 | 583.9 | |||||||||||||
Equity affiliates' income | 42.2 | 32.8 | 30.7 | 6.9 | — | 112.6 | (A) | ||||||||||||
Six Months Ended 31 March 2019 | |||||||||||||||||||
Sales | $1,980.9 | $1,018.6 | $1,252.2 | $122.0 | $38.0 | $4,411.7 | |||||||||||||
Operating income (loss) | 474.8 | 228.1 | 401.5 | (8.3 | ) | (95.6 | ) | 1,000.5 | (A) | ||||||||||
Depreciation and amortization | 250.5 | 92.6 | 164.8 | 4.1 | 8.1 | 520.1 | |||||||||||||
Equity affiliates' income | 40.4 | 27.0 | 30.0 | 1.7 | — | 99.1 | (A) | ||||||||||||
Total Assets | |||||||||||||||||||
31 March 2020 | $5,933.7 | $3,378.8 | $6,489.7 | $438.1 | $3,260.9 | $19,501.2 | |||||||||||||
30 September 2019 | 5,832.2 | 3,250.8 | 6,240.6 | 325.7 | 3,293.5 | 18,942.8 |
(A) | Refer to the Reconciliations to Consolidated Results section below. |
Three Months Ended | Six Months Ended | |||||||||||
31 March | 31 March | |||||||||||
Operating Income | 2020 | 2019 | 2020 | 2019 | ||||||||
Total | $543.4 | $516.5 | $1,104.4 | $1,000.5 | ||||||||
Facility closure | — | — | — | (29.0 | ) | |||||||
Company headquarters relocation income (expense) | 33.8 | — | 33.8 | — | ||||||||
Consolidated Operating Income | $577.2 | $516.5 | $1,138.2 | $971.5 |
Three Months Ended | Six Months Ended | |||||||||||
31 March | 31 March | |||||||||||
Equity Affiliates' Income | 2020 | 2019 | 2020 | 2019 | ||||||||
Total | $54.4 | $46.2 | $112.6 | $99.1 | ||||||||
India Finance Act 2020 | 33.8 | — | 33.8 | — | ||||||||
Consolidated Equity Affiliates' Income | $88.2 | $46.2 | $146.4 | $99.1 |
Continuing Operations | |||||||||||||||
Three Months Ended 31 March | |||||||||||||||
Q2 2020 vs. Q2 2019 | Operating Income | Equity Affiliates' Income | Income Tax Provision | Net Income Attributable to Air Products | Diluted EPS(A) | ||||||||||
2020 GAAP | $577.2 | $88.2 | $148.5 | $492.1 | $2.21 | ||||||||||
2019 GAAP | 516.5 | 46.2 | 107.5 | 421.3 | 1.90 | ||||||||||
Change GAAP | $70.8 | $0.31 | |||||||||||||
% Change GAAP | 17 | % | 16 | % | |||||||||||
2020 GAAP | $577.2 | $88.2 | $148.5 | $492.1 | $2.21 | ||||||||||
Company headquarters relocation (income) expense | (33.8 | ) | — | (8.2 | ) | (25.6 | ) | (0.12 | ) | ||||||
India Finance Act 2020 | — | (33.8 | ) | (20.3 | ) | (13.5 | ) | (0.06 | ) | ||||||
2020 Non-GAAP Measure ("Adjusted") | $543.4 | $54.4 | $120.0 | $453.0 | $2.04 | ||||||||||
2019 GAAP | $516.5 | $46.2 | $107.5 | $421.3 | $1.90 | ||||||||||
Pension settlement loss(B) | — | — | 1.2 | 3.8 | 0.02 | ||||||||||
2019 Non-GAAP Measure ("Adjusted") | $516.5 | $46.2 | $108.7 | $425.1 | $1.92 | ||||||||||
Change Non-GAAP Measure ("Adjusted") | $27.9 | $0.12 | |||||||||||||
% Change Non-GAAP Measure ("Adjusted") | 7 | % | 6 | % |
(A) | The per share impact for each of our non-GAAP adjustments was calculated independently and may not sum to total adjusted diluted EPS due to rounding. |
(B) | Reflected on the consolidated income statements within "Other non-operating income (expense), net." Fiscal year 2019 includes a before-tax impact of $5.0 for the three months ended 31 March 2019. |
Q1 | Q2 | Q3 | Q4 | Q2 YTD Total | ||||||||||||||||||
Sales | ||||||||||||||||||||||
2020 | $2,254.7 | $2,216.3 | $4,471.0 | |||||||||||||||||||
2019 | 2,224.0 | 2,187.7 | 2,224.0 | 2,283.2 | 4,411.7 |
Q1 | Q2 | Q3 | Q4 | Q2 YTD Total | |||||||||||||||||||
2020 | $ | Margin | $ | Margin | $ | Margin | $ | Margin | $ | Margin | |||||||||||||
Net income and net income margin | $488.9 | 21.7 | % | $490.4 | 22.1 | % | $979.3 | 21.9 | % | ||||||||||||||
Less: Loss from discontinued operations, net of tax | — | — | % | (14.3 | ) | (0.6 | )% | (14.3 | ) | (0.3 | )% | ||||||||||||
Add: Interest expense | 18.7 | 0.8 | % | 19.3 | 0.9 | % | 38.0 | 0.9 | % | ||||||||||||||
Less: Other non-operating income (expense), net | 9.1 | 0.4 | % | 7.1 | 0.3 | % | 16.2 | 0.4 | % | ||||||||||||||
Add: Income tax provision | 120.7 | 5.4 | % | 148.5 | 6.7 | % | 269.2 | 6.0 | % | ||||||||||||||
Add: Depreciation and amortization | 289.2 | 12.8 | % | 294.7 | 13.3 | % | 583.9 | 13.1 | % | ||||||||||||||
Less: Company headquarters relocation income (expense) | — | — | % | 33.8 | 1.5 | % | 33.8 | 0.8 | % | ||||||||||||||
Less: India Finance Act 2020 - equity affiliate income impact | — | — | % | 33.8 | 1.5 | % | 33.8 | 0.8 | % | ||||||||||||||
Adjusted EBITDA and adjusted EBITDA margin | $908.4 | 40.3 | % | $892.5 | 40.3 | % | $1,800.9 | 40.3 | % |
Q1 | Q2 | Q3 | Q4 | Q2 YTD Total | |||||||||||||||||||||||||
2019 | $ | Margin | $ | Margin | $ | Margin | $ | Margin | $ | Margin | |||||||||||||||||||
Net income and net income margin | $357.0 | 16.0 | % | $433.5 | 19.8 | % | $500.2 | 22.5 | % | $518.7 | 22.7 | % | $790.5 | 17.9 | % | ||||||||||||||
Add: Interest expense | 37.3 | 1.7 | % | 35.4 | 1.6 | % | 34.2 | 1.5 | % | 30.1 | 1.3 | % | 72.7 | 1.6 | % | ||||||||||||||
Less: Other non-operating income (expense), net | 18.5 | 0.8 | % | 13.7 | 0.6 | % | 17.6 | 0.8 | % | 16.9 | 0.7 | % | 32.2 | 0.7 | % | ||||||||||||||
Add: Income tax provision | 132.1 | 5.9 | % | 107.5 | 4.9 | % | 109.3 | 4.9 | % | 131.2 | 5.7 | % | 239.6 | 5.4 | % | ||||||||||||||
Add: Depreciation and amortization | 258.0 | 11.6 | % | 262.1 | 12.0 | % | 269.1 | 12.1 | % | 293.6 | 12.9 | % | 520.1 | 11.8 | % | ||||||||||||||
Add: Facility closure | 29.0 | 1.3 | % | — | — | % | — | — | % | — | — | % | 29.0 | 0.7 | % | ||||||||||||||
Add: Cost reduction actions | — | — | % | — | — | % | 25.5 | 1.2 | % | — | — | % | — | — | % | ||||||||||||||
Less: Gain on exchange of equity affiliate investments | — | — | % | — | — | % | 29.1 | 1.3 | % | — | — | % | — | — | % | ||||||||||||||
Adjusted EBITDA and adjusted EBITDA margin | $794.9 | 35.7 | % | $824.8 | 37.7 | % | $891.6 | 40.1 | % | $956.7 | 41.9 | % | $1,619.7 | 36.7 | % |
Q1 | Q2 | Q2 YTD Total | ||||||||||||||||||
2020 vs. 2019 | ||||||||||||||||||||
Change GAAP | ||||||||||||||||||||
Net income $ change | $131.9 | $56.9 | $188.8 | |||||||||||||||||
Net income % change | 37 | % | 13 | % | 24 | % | ||||||||||||||
Net income margin change | 570 | bp | 230 | bp | 400 | bp | ||||||||||||||
Change Non-GAAP | ||||||||||||||||||||
Adjusted EBITDA $ change | $113.5 | $67.7 | $181.2 | |||||||||||||||||
Adjusted EBITDA % change | 14 | % | 8 | % | 11 | % | ||||||||||||||
Adjusted EBITDA margin change | 460 | bp | 260 | bp | 360 | bp |
Industrial Gases– Americas | Industrial Gases– EMEA | Industrial Gases– Asia | Industrial Gases– Global | Corporate and other | Total | ||||||||||||||
GAAP MEASURES | |||||||||||||||||||
Three Months Ended 31 March 2020 | |||||||||||||||||||
Operating income (loss) | $268.0 | $124.6 | $209.1 | ($19.8 | ) | ($38.5 | ) | $543.4 | (A) | ||||||||||
Operating margin | 28.7 | % | 25.3 | % | 31.8 | % | |||||||||||||
Three Months Ended 31 March 2019 | |||||||||||||||||||
Operating income (loss) | $255.6 | $122.5 | $199.7 | ($12.2 | ) | ($49.1 | ) | $516.5 | (A) | ||||||||||
Operating margin | 25.8 | % | 24.8 | % | 31.9 | % | |||||||||||||
Operating income $ change | $12.4 | $2.1 | $9.4 | ||||||||||||||||
Operating income % change | 5 | % | 2 | % | 5 | % | |||||||||||||
Operating margin change | 290 | bp | 50 | bp | (10 | ) bp | |||||||||||||
NON-GAAP MEASURES | |||||||||||||||||||
Three Months Ended 31 March 2020 | |||||||||||||||||||
Operating income (loss) | $268.0 | $124.6 | $209.1 | ($19.8 | ) | ($38.5 | ) | $543.4 | (A) | ||||||||||
Add: Depreciation and amortization | 135.5 | 47.6 | 104.1 | 2.4 | 5.1 | 294.7 | |||||||||||||
Add: Equity affiliates' income | 21.6 | 13.5 | 13.8 | 5.5 | — | 54.4 | (B) | ||||||||||||
Adjusted EBITDA | $425.1 | $185.7 | $327.0 | ($11.9 | ) | ($33.4 | ) | $892.5 | |||||||||||
Adjusted EBITDA margin | 45.6 | % | 37.7 | % | 49.7 | % | |||||||||||||
Three Months Ended 31 March 2019 | |||||||||||||||||||
Operating income (loss) | $255.6 | $122.5 | $199.7 | ($12.2 | ) | ($49.1 | ) | $516.5 | (A) | ||||||||||
Add: Depreciation and amortization | 124.9 | 46.3 | 84.9 | 2.0 | 4.0 | 262.1 | |||||||||||||
Add: Equity affiliates' income | 17.8 | 13.3 | 13.8 | 1.3 | — | 46.2 | (B) | ||||||||||||
Adjusted EBITDA | $398.3 | $182.1 | $298.4 | ($8.9 | ) | ($45.1 | ) | $824.8 | |||||||||||
Adjusted EBITDA margin | 40.2 | % | 36.8 | % | 47.7 | % | |||||||||||||
Adjusted EBITDA $ change | $26.8 | $3.6 | $28.6 | ||||||||||||||||
Adjusted EBITDA % change | 7 | % | 2 | % | 10 | % | |||||||||||||
Adjusted EBITDA margin change | 540 | bp | 90 | bp | 200 | bp |
(A) | The table below reconciles operating income as reflected on our consolidated income statements to total operating income in the table above: |
Three Months Ended | |||||||
31 March | |||||||
Operating Income | 2020 | 2019 | |||||
Consolidated operating income | $577.2 | $516.5 | |||||
Company headquarters relocation (income) expense | (33.8 | ) | — | ||||
Total | $543.4 | $516.5 |
(B) | The table below reconciles equity affiliates' income as reflected on our consolidated income statements to total equity affiliates' income in the table above: |
Three Months Ended | |||||||
31 March | |||||||
Equity Affiliates' Income | 2020 | 2019 | |||||
Consolidated equity affiliates' income | $88.2 | $46.2 | |||||
India Finance Act 2020 | (33.8 | ) | — | ||||
Total | $54.4 | $46.2 |
Three Months Ended 31 March | ||||||
2020 | 2019 | |||||
Income Tax Provision | $148.5 | $107.5 | ||||
Income From Continuing Operations Before Taxes | $653.2 | $541.0 | ||||
Effective Tax Rate | 22.7 | % | 19.9 | % | ||
Income Tax Provision | $148.5 | $107.5 | ||||
Company headquarters relocation | (8.2 | ) | — | |||
India Finance Act 2020 | (20.3 | ) | — | |||
Pension settlement loss | — | 1.2 | ||||
Adjusted Income Tax Provision | $120.0 | $108.7 | ||||
Income From Continuing Operations Before Taxes | $653.2 | $541.0 | ||||
Company headquarters relocation (income) expense | (33.8 | ) | — | |||
India Finance Act 2020 - equity affiliate income impact | (33.8 | ) | — | |||
Pension settlement loss | — | 5.0 | ||||
Adjusted Income From Continuing Operations Before Taxes | $585.6 | $546.0 | ||||
Adjusted Effective Tax Rate | 20.5 | % | 19.9 | % |
31 March | |||
2020 | |||
Short-term borrowings | $29.0 | ||
Current portion of long-term debt | 38.4 | ||
Long-term debt | 2,922.1 | ||
Long-term debt – related party | 323.1 | ||
Total Debt | 3,312.6 | ||
Less: Cash and cash items | 2,220.1 | ||
Net Debt | $1,092.5 |