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8-K - FORM 8-K - RPM INTERNATIONAL INC/DE/d146464d8k.htm

Exhibit 99.1

RPM REPORTS RECORD FOURTH-QUARTER AND

FULL-YEAR RESULTS FOR FISCAL 2016

 

    Fourth-quarter sales increase 4%; net income up 20%

 

    Fiscal 2016 full-year sales increase 5%; net income up 48%

 

    Fiscal year net income up 10% over as-adjusted prior-year results

Medina, Ohio – July 28, 2016 – RPM International Inc. (NYSE: RPM) today reported record sales, net income and diluted earnings per share for its fiscal fourth quarter and year ended May 31, 2016.

Fourth-Quarter Results

Fourth-quarter net sales increased 3.9% to $1.43 billion from $1.37 billion. Net income for the fourth quarter was up 19.5% to $152.9 million from $128.0 million reported in the fourth quarter of fiscal 2015. Diluted earnings per share were $1.13, up 20.2% from $0.94 reported a year ago. Consolidated earnings before interest and taxes (EBIT) improved 7.9% to $220.4 million, from $204.3 million a year ago.

“RPM turned in a solid performance for our fourth quarter, especially in light of the headwinds posed by the continuing strong U.S. dollar, slow growth in many international regions and a worldwide recession in the energy and heavy manufacturing segments of the economy,” stated Frank C. Sullivan, RPM chairman and chief executive officer.

Fourth-Quarter Segment Sales and Earnings

Fiscal 2016 fourth-quarter industrial segment sales declined 0.7% to $686.6 million from $691.8 million a year ago. Organic sales improved 1.6%, while acquisition growth added 0.5%. Foreign currency translation negatively impacted sales by 2.8%. Industrial segment EBIT was up 15.4% to $107.9 million from $93.5 million in the fiscal 2015 fourth quarter. Industrial segment EBIT included a one-time gain of $8.0 million as a result of the revaluation of the company’s Carboline subsidiary’s 49% ownership in Carboline Dalian Paint Production Co., Ltd. that occurred in conjunction with the acquisition of the remaining 51% of the Chinese business on May 18, 2016. Excluding this one-time gain, industrial segment EBIT increased approximately 7.0%.

“Industrial results included strong performance in the U.S. by our concrete admixture and commercial sealants businesses, which benefited from continued momentum in commercial construction. We saw strong results in U.S. dollars from our sealants business in Germany and our polymer flooring business in the U.K. Many of our other overseas businesses posted improved sales in local currencies, but suffered from currency exchange translation. We continue to see depressed conditions in the global energy and heavy industrial markets,” stated Sullivan.


RPM Reports Record Fourth-Quarter and Full-Year Results for Fiscal 2016

July 28, 2016

Page 2 of 4

 

Sales in RPM’s specialty segment increased 5.1% to $196.2 million from $186.7 million a year ago. Organic sales increased 1.7% and acquisition growth added 4.2%. Sales were negatively impacted by 0.8% in foreign currency translation. Specialty segment EBIT increased 20.1% to $32.7 million from $27.2 million in the fiscal 2015 fourth quarter.

“Several smaller acquisitions completed during the year drove the segment’s sales growth into the mid-single-digit range. We were also pleased with the significant leverage to the bottom line from these predominately U.S. based businesses,” stated Sullivan.

Net sales for RPM’s consumer segment increased 9.9% to $543.8 million from $494.7 million in the fiscal 2015 fourth quarter. Organic sales were up 9.9%, while acquisition growth added 1.4%. Foreign exchange translation reduced sales by 1.4%. Consumer segment EBIT declined 2.6% in the fiscal 2016 fourth quarter to $98.0 million from $100.6 million. Fiscal 2015 fourth-quarter EBIT included the benefit of an earn-out reversal of $9.9 million, and fiscal 2016 fourth-quarter EBIT included the impact of a $9.3 million legal settlement charge related to deck coatings. Excluding these two one-time adjustments, consumer segment EBIT increased 18.2% quarter over quarter.

“Our larger core consumer businesses performed exceptionally well in the quarter, with nearly double-digit growth driven by several product rollouts resulting in market share gains and new product placements early in the 2016 fiscal year. Additionally, consumer segment European businesses had double-digit growth during the quarter. We were also very pleased with the strong leverage to the EBIT line, excluding the two one-time adjustments,” stated Sullivan.

Cash Flow and Financial Position

For fiscal 2016, cash from operations was $474.7 million, up 43.7% from $330.4 million in fiscal 2015. Total debt at the end of fiscal 2016 was $1.65 billion, compared to $1.66 billion at the end of fiscal 2015. RPM’s net (of cash) debt-to-total capitalization ratio was 50.2%, compared to 53.4% at May 31, 2015.

“Our total liquidity of $1.1 billion, including $265.2 million in cash and long-term committed available credit, compares to $963.8 million a year ago. We have plenty of resources to fund a growing cash dividend, invest in our businesses and pursue a robust acquisition program. As we stated last year, fiscal 2016 was going to be characterized as a year of investing in growth initiatives, even during a time of global uncertainty. During fiscal 2016, capital expenditures were $117.2 million, or roughly 40% higher than the $85.4 million spent last year,” Sullivan stated.

Fiscal 2016 Full-Year Consolidated Sales and Earnings

Fiscal 2016 consolidated full-year net sales increased 4.8% to $4.81 billion from $4.59 billion in fiscal 2015. Net income increased 48.1% to $354.7 million from the reported $239.5 million in fiscal 2015. Diluted earnings per share of $2.63 were up 47.8% from $1.78 a year ago. Consolidated EBIT was up 8.1% to $564.8 million from $522.3 million in fiscal 2015.

Fiscal 2015 net income included an adjustment of $83.5 million in the third quarter for a non-cash, net charge for a tax accrual, as previously disclosed. Fiscal 2016 net income was up 9.8% compared to an adjusted $323.0 million in the prior fiscal year, while diluted earnings per share were up 10.5% from an adjusted $2.38 in fiscal 2015.


RPM Reports Record Fourth-Quarter and Full-Year Results for Fiscal 2016

July 28, 2016

Page 3 of 4

 

Fiscal 2016 Segment Sales and Earnings

Fiscal 2016 sales for RPM’s industrial segment declined 3.5% to $2.44 billion from $2.53 billion in fiscal 2015. Organic sales increased 2.5%, with acquisition growth contributing 0.6%. Foreign currency translation negatively impacted sales by 6.6%. Industrial segment EBIT improved 1.4% to $258.8 million from $255.2 million in fiscal 2015. Excluding the one-time Dalian gain of $8.0 million during the fiscal fourth quarter, EBIT would have declined year-over-year by 1.7%.

Specialty segment sales increased 60.1% to $732.1 million from $457.2 million in fiscal 2015. Organic sales improved 2.7% and acquisitions added 60.4%, primarily due to inclusion of a full year’s results from the reconsolidation of SPHC companies, which occurred in January 2015. Foreign currency translation reduced sales by 3.0%. Specialty segment EBIT was up 64.0% to $111.2 million from $67.8 million a year ago.

Consumer segment sales for fiscal 2016 increased 2.1% to $1.64 billion from $1.60 billion in fiscal 2015. Organic sales increased by 3.3%, and acquisition growth added 0.9%. Currency translation negatively impacted sales by 2.1%. Consumer segment EBIT decreased 2.1%, to $268.2 million from $274.0 million. Consumer segment EBIT for fiscal 2016 was negatively impacted by the $9.3 million fourth-quarter legal settlement charge and positively impacted by a $14.5 million second-quarter earn-out reversal. Fiscal 2015 EBIT included the benefits of a $9.9 million earn-out reversal during the fourth quarter and a $17.0 million earn-out reversal in the second quarter. Excluding these four one-time adjustments, consumer segment EBIT increased 6.4% year over year.

Business Outlook

“In fiscal 2017, we are expecting overall sales growth in the 4% to 6% range, with the consumer and specialty segments up in the mid-single-digit range and the industrial segment up in the low-single-digit range. We expect continued improvement in the U.S. commercial construction and housing sectors, while global markets will remain somewhat choppy, especially those serving energy and heavy industry, along with currency headwinds, especially the British pound.

“From a diluted earnings per share perspective, there were certain one-time items in fiscal 2016 that will not repeat in fiscal 2017, including the benefit of the Kirker earn-out reversal in the second quarter ($0.08 per share) and the Dalian gain ($0.06 per share) in the fourth quarter, which were partially offset by a loss of $0.05 per share on the legal settlement charge, also in the fourth quarter. Excluding these three items from the full-year fiscal 2016 diluted earnings per share of $2.63, an ‘apples-to-apples’ starting point for fiscal 2017 would be $2.54. We expect our core business to leverage 4% to 6% sales growth into 10% to 12% growth in earnings. However, in fiscal 2017 we anticipate approximately $0.06 per share in additional unfavorable currency translation driven largely by the devaluation of the British pound against the U.S. dollar and $0.05 per share in higher pension costs due to the continued decline in the discount rates. As a result of these factors, our earnings guidance for fiscal 2017 is $2.68 to $2.78 per diluted share,” stated Sullivan.


RPM Reports Record Fourth-Quarter and Full-Year Results for Fiscal 2016

July 28, 2016

Page 4 of 4

 

Webcast and Conference Call Information

Management will host a conference call to discuss the results beginning at 10:00 a.m. EDT today. The call can be accessed by dialing 888-771-4371 or 847-585-4405 for international callers. Participants are asked to call the assigned number approximately 10 minutes before the conference call begins. The call, which will last approximately one hour, will be open to the public, but only financial analysts will be permitted to ask questions. The media and all other participants will be in a listen-only mode. The call may also be accessed via the RPM website at www.RPMinc.com.

For those unable to listen to the live call, a replay will be available from approximately 12:30 p.m. EDT on July 28, 2016 until 11:59 p.m. EDT on August 4, 2016. The replay can be accessed by dialing 888-843-7419 or 630-652-3042 for international callers. The access code is 41121752. The call also will be available both live and for replay, and as a written transcript, via the RPM web site at www.RPMinc.com.

About RPM

RPM International Inc. owns subsidiaries that are world leaders in specialty coatings, sealants, building materials and related services across three segments. RPM’s industrial products include roofing systems, sealants, corrosion control coatings, flooring coatings and other construction chemicals. Industrial companies include Stonhard, Tremco, illbruck, Carboline, Flowcrete, and Euclid Chemical. RPM’s consumer products are used by professionals and do-it-yourselfers for home maintenance and improvement and by hobbyists. Consumer brands include Rust-Oleum, DAP, Zinsser, Varathane and Testors. RPM’s specialty products include industrial cleaners, colorants, exterior finishes, specialty OEM coatings, edible coatings, restoration services equipment and specialty glazes for the pharmaceutical and food industries. Specialty segment companies include Day-Glo, Dryvit, RPM Wood Finishes, Mantrose-Haeuser, Legend Brands, Kop-Coat, and TCI. Additional details can be found at www.rpminc.com and by following RPM on Twitter at www.twitter.com/RPMintl.

For more information, contact Barry M. Slifstein, vice president – investor relations, at 330-273-5090 or bslifstein@rpminc.com.

This press release contains “forward-looking statements” relating to our business. These forward-looking statements, or other statements made by us, are made based on our expectations and beliefs concerning future events impacting us, and are subject to uncertainties and factors (including those specified below) which are difficult to predict and, in many instances, are beyond our control. As a result, our actual results could differ materially from those expressed in or implied by any such forward-looking statements. These uncertainties and factors include (a) global markets and general economic conditions, including uncertainties surrounding the volatility in financial markets, the availability of capital and the effect of changes in interest rates, and the viability of banks and other financial institutions; (b) the prices, supply and capacity of raw materials, including assorted pigments, resins, solvents and other natural gas- and oil-based materials; packaging, including plastic containers; and transportation services, including fuel surcharges; (c) continued growth in demand for our products; (d) legal, environmental and litigation risks inherent in our construction and chemicals businesses and risks related to the adequacy of our insurance coverage for such matters; (e) the effect of changes in interest rates; (f) the effect of fluctuations in currency exchange rates upon our foreign operations; (g) the effect of non-currency risks of investing in and conducting operations in foreign countries, including those relating to domestic and international political, social, economic and regulatory factors; (h) risks and uncertainties associated with our ongoing acquisition and divestiture activities; (i) risks related to the adequacy of our contingent liability reserves; and (j) other risks detailed in our filings with the Securities and Exchange Commission, including the risk factors set forth in our Annual Report on Form 10-K for the year ended May 31, 2015, as the same may be updated from time to time. We do not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after the date of this release.

# # #


CONSOLIDATED STATEMENTS OF INCOME

IN THOUSANDS, EXCEPT PER SHARE DATA

 

     As Reported     Adjusted (1)  
     Three Months Ended     Year Ended     Year Ended
May 31,
 
     May 31,
2016
    May 31,
2015
    May 31,
2016
    May 31,
2015
    2015  
     (Unaudited)                 (Unaudited)  

Net Sales

   $ 1,426,584      $ 1,373,159      $ 4,813,649      $ 4,594,550      $ 4,594,550   

Cost of sales

     779,390        773,864        2,726,601        2,653,181        2,653,181   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     647,194        599,295        2,087,048        1,941,369        1,941,369   

Selling, general & administrative expenses

     424,616        395,359        1,520,977        1,422,944        1,422,944   

Interest expense

     23,605        27,303        91,683        87,615        87,615   

Investment (income), net

     (2,288     (2,023     (10,365     (18,577     (18,577

Other expense (income), net

     2,163        (342     1,287        (3,866     (3,866
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     199,098        178,998        483,466        453,253        453,253   

Provision for income taxes

     45,444        50,413        126,008        224,925        118,699   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     153,654        128,585        357,458        228,328        334,554   

Less: Net income (loss) attributable to noncontrolling interests

     759        598        2,733        (11,156     11,566   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to RPM International Inc. Stockholders

   $ 152,895      $ 127,987      $ 354,725      $ 239,484      $ 322,988   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per share of common stock attributable to

            

RPM International Inc. Stockholders:

            

Basic

   $ 1.16      $ 0.97      $ 2.70      $ 1.81      $ 2.43   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

   $ 1.13      $ 0.94      $ 2.63      $ 1.78      $ 2.38   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Average shares of common stock outstanding - basic

     129,017        129,578        129,383        129,933        129,933   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Average shares of common stock outstanding - diluted

     136,408        134,540        136,716        134,893        134,893   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) See attached page for reconciliation from As Reported to Adjusted figures

SUPPLEMENTAL SEGMENT INFORMATION

IN THOUSANDS

 

     Three Months Ended     Year Ended  
     May 31,
2016
    May 31,
2015
    May 31,
2016
    May 31,
2015
 
     (Unaudited)              

Net Sales:

        

Industrial Segment

   $ 686,578      $ 691,762      $ 2,444,120      $ 2,533,476   

Specialty Segment

     196,163        186,729        732,091        457,245   

Consumer Segment

     543,843        494,668        1,637,438        1,603,829   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 1,426,584      $ 1,373,159      $ 4,813,649      $ 4,594,550   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income Before Income Taxes (a):

        

Industrial Segment

        

Income Before Income Taxes (b)

   $ 106,440      $ 91,862      $ 252,781      $ 246,997   

Interest (Expense), Net (c)

     (1,505     (1,671     (5,987     (8,190
  

 

 

   

 

 

   

 

 

   

 

 

 

EBIT (d)

   $ 107,945      $ 93,533      $ 258,768      $ 255,187   
  

 

 

   

 

 

   

 

 

   

 

 

 

Specialty Segment

        

Income Before Income Taxes (b)

   $ 32,828      $ 27,442      $ 111,945      $ 68,340   

Interest Income, Net (c)

     147        230        730        534   
  

 

 

   

 

 

   

 

 

   

 

 

 

EBIT (d)

   $ 32,681      $ 27,212      $ 111,215      $ 67,806   
  

 

 

   

 

 

   

 

 

   

 

 

 

Consumer Segment

        

Income Before Income Taxes (b)

   $ 97,881      $ 100,623      $ 268,218      $ 274,001   

Interest Income (Expense), Net (c)

     (76     40        40        34   
  

 

 

   

 

 

   

 

 

   

 

 

 

EBIT (d)

   $ 97,957      $ 100,583      $ 268,178      $ 273,967   
  

 

 

   

 

 

   

 

 

   

 

 

 

Corporate/Other

        

(Expense) Before Income Taxes (b)

   $ (38,051   $ (40,929   $ (149,478   $ (136,085

Interest (Expense), Net (c)

     (19,883     (23,879     (76,101     (61,416
  

 

 

   

 

 

   

 

 

   

 

 

 

EBIT (d)

   $ (18,168   $ (17,050   $ (73,377   $ (74,669
  

 

 

   

 

 

   

 

 

   

 

 

 

Consolidated

        

Income Before Income Taxes (b)

   $ 199,098      $ 178,998      $ 483,466      $ 453,253   

Interest (Expense), Net (c)

     (21,317     (25,280     (81,318     (69,038
  

 

 

   

 

 

   

 

 

   

 

 

 

EBIT (d)

   $ 220,415      $ 204,278      $ 564,784      $ 522,291   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) Prior period information has been recast to reflect the current period change in reportable segments.
(b) The presentation includes a reconciliation of Income (Loss) Before Income Taxes, a measure defined by Generally Accepted Accounting Principles in the United States (GAAP), to EBIT.
(c) Interest (expense), net includes the combination of interest (expense) and investment income/(expense), net.
(d) EBIT is defined as earnings (loss) before interest and taxes. We evaluate the profit performance of our segments based on income before income taxes, but also look to EBIT as a performance evaluation measure because interest expense is essentially related to acquisitions, as opposed to segment operations. For that reason, we believe EBIT is also useful to investors as a metric in their investment decisions. EBIT should not be considered an alternative to, or more meaningful than, income before income taxes as determined in accordance with GAAP, since EBIT omits the impact of interest in determining operating performance, which represent items necessary to our continued operations, given our level of indebtedness. Nonetheless, EBIT is a key measure expected by and useful to our fixed income investors, rating agencies and the banking community all of whom believe, and we concur, that this measure is critical to the capital markets’ analysis of our segments’ core operating performance. We also evaluate EBIT because it is clear that movements in EBIT impact our ability to attract financing. Our underwriters and bankers consistently require inclusion of this measure in offering memoranda in conjunction with any debt underwriting or bank financing. EBIT may not be indicative of our historical operating results, nor is it meant to be predictive of potential future results.


CONSOLIDATED STATEMENTS OF INCOME

RECONCILIATION OF “AS REPORTED” TO “ADJUSTED”

IN THOUSANDS, EXCEPT PER SHARE DATA

(Unaudited)

 

     Year Ended May 31, 2015  
     AS REPORTED     Adjustments          ADJUSTED  

Net Sales

   $ 4,594,550      $ —           $ 4,594,550   

Cost of sales

     2,653,181        —             2,653,181   
  

 

 

   

 

 

      

 

 

 

Gross profit

     1,941,369        —             1,941,369   

Selling, general & administrative expenses

     1,422,944        —             1,422,944   

Interest expense

     87,615        —             87,615   

Investment (income), net

     (18,577     —             (18,577

Other expense (income), net

     (3,866     —             (3,866
  

 

 

   

 

 

      

 

 

 

Income before income taxes

     453,253        —             453,253   

Provision for income taxes

     224,925        (106,226   (1)      118,699   
  

 

 

   

 

 

      

 

 

 

Net income

     228,328        106,226           334,554   

Less: Net income (loss) attributable to noncontrolling interests

     (11,156     22,722      (1)      11,566   
  

 

 

   

 

 

      

 

 

 

Net income attributable to RPM International Inc. Stockholders

   $ 239,484      $ 83,504         $ 322,988   
  

 

 

   

 

 

      

 

 

 

Earnings per share attributable to RPM International Inc. Stockholders:

         

Basic

   $ 1.81      $ 0.62         $ 2.43   
  

 

 

   

 

 

      

 

 

 

Diluted

   $ 1.78      $ 0.60         $ 2.38   
  

 

 

   

 

 

      

 

 

 
(1) Reflects adjustments related to the recognition of an ASC 740-30 tax liability for the potential repatriation of foreign earnings and related impact on NCI Net Income.


CONSOLIDATED BALANCE SHEETS

IN THOUSANDS

 

     May 31, 2016     May 31, 2015  

Assets

    

Current Assets

    

Cash and cash equivalents

   $ 265,152      $ 174,711   

Trade accounts receivable

     987,692        980,737   

Allowance for doubtful accounts

     (24,600     (24,526
  

 

 

   

 

 

 

Net trade accounts receivable

     963,092        956,211   

Inventories

     685,818        674,205   

Deferred income taxes

     —          29,892   

Prepaid expenses and other current assets

     224,280        264,827   
  

 

 

   

 

 

 

Total current assets

     2,138,342        2,099,846   
  

 

 

   

 

 

 

Property, Plant and Equipment, at Cost

     1,344,830        1,258,304   

Allowance for depreciation

     (715,377     (668,658
  

 

 

   

 

 

 

Property, plant and equipment, net

     629,453        589,646   
  

 

 

   

 

 

 

Other Assets

    

Goodwill

     1,219,630        1,215,688   

Other intangible assets, net of amortization

     575,401        604,130   

Deferred income taxes, non-current

     19,771        5,685   

Other

     193,444        179,245   
  

 

 

   

 

 

 

Total other assets

     2,008,246        2,004,748   
  

 

 

   

 

 

 

Total Assets

   $ 4,776,041      $ 4,694,240   
  

 

 

   

 

 

 

Liabilities and Stockholders’ Equity

    

Current Liabilities

    

Accounts payable

   $ 500,506      $ 512,165   

Current portion of long-term debt

     4,713        2,038   

Accrued compensation and benefits

     183,768        169,370   

Accrued losses

     35,290        22,016   

Other accrued liabilities

     277,914        197,647   
  

 

 

   

 

 

 

Total current liabilities

     1,002,191        903,236   
  

 

 

   

 

 

 

Long-Term Liabilities

    

Long-term debt, less current maturities

     1,646,332        1,654,037   

Other long-term liabilities

     702,979        752,821   

Deferred income taxes

     49,791        90,681   
  

 

 

   

 

 

 

Total long-term liabilities

     2,399,102        2,497,539   
  

 

 

   

 

 

 

Total liabilities

     3,401,293        3,400,775   
  

 

 

   

 

 

 

Commitments and contingencies

    

Stockholders’ Equity

    

Preferred stock; none issued

    

Common stock (outstanding 132,944; 133,203)

     1,329        1,332   

Paid-in capital

     921,956        872,127   

Treasury stock, at cost

     (196,274     (124,928

Accumulated other comprehensive (loss)

     (502,047     (394,135

Retained earnings

     1,147,371        936,996   
  

 

 

   

 

 

 

Total RPM International Inc. stockholders’ equity

     1,372,335        1,291,392   

Noncontrolling interest

     2,413        2,073   
  

 

 

   

 

 

 

Total equity

     1,374,748        1,293,465   
  

 

 

   

 

 

 

Total Liabilities and Stockholders’ Equity

   $ 4,776,041      $ 4,694,240   
  

 

 

   

 

 

 


CONSOLIDATED STATEMENTS OF CASH FLOWS

IN THOUSANDS

 

     Year Ended  
     May 31,
2016
    May 31,
2015
 

Cash Flows From Operating Activities:

    

Net income

   $ 357,458      $ 228,328   

Adjustments to reconcile net income to net cash provided by (used for) operating activities:

    

Depreciation

     66,732        62,188   

Amortization

     44,307        36,988   

Reversal of contingent consideration obligations

     (14,500     (29,665

Asset impairment charge

     4,471        818   

Other-than-temporary impairments on marketable securities

     3,811        22   

Deferred income taxes

     9,399        97,502   

Stock-based compensation expense

     31,287        31,741   

Other non-cash interest expense

     9,750        5,624   

Gain on remeasurement of joint venture ownership

     (7,972  

Realized (gain) on sales of marketable securities

     (6,457     (8,692

Other

     (15     (1,954

Changes in assets and liabilities, net of effect from purchases and sales of businesses:

    

(Increase) in receivables

     (24,582     (90,230

(Increase) in inventory

     (17,733     (31,348

(Increase) in prepaid expenses and other current and long-term assets

     (25,617     (4,590

(Decrease) in accounts payable

     (5,958     (16,249

Increase (decrease) in accrued compensation and benefits

     17,681        (1,297

Increase (decrease) in accrued losses

     13,514        (7,218

Increase in other accrued liabilities

     8,011        51,761   

Other

     11,119        6,719   
  

 

 

   

 

 

 

Cash Provided By Operating Activities

     474,706        330,448   
  

 

 

   

 

 

 

Cash Flows From Investing Activities:

    

Capital expenditures

     (117,183     (85,363

Acquisition of businesses, net of cash acquired

     (51,992     (467,573

Purchase of marketable securities

     (32,280     (61,511

Proceeds from sales of marketable securities

     32,631        48,971   

Proceeds from sales of assets or businesses

     866        4,079   

Other

     2,092        1,944   
  

 

 

   

 

 

 

Cash (Used For) Investing Activities

     (165,866     (559,453
  

 

 

   

 

 

 

Cash Flows From Financing Activities:

    

Additions to long-term and short-term debt

     142,130        460,560   

Reductions of long-term and short-term debt

     (147,155     (162,318

Cash dividends

     (144,350     (136,179

Shares of common stock repurchased and returned for taxes

     (71,346     (39,528

Payments of acquisition-related contingent consideration

     (2,088     (22,179

Exercise of stock options and awards, including tax benefit

     18,540        8,560   

Other

     (1,836     1,277   
  

 

 

   

 

 

 

Cash (Used For) Provided By Financing Activities

     (206,105     110,193   
  

 

 

   

 

 

 

Effect of Exchange Rate Changes on Cash and Cash Equivalents

     (12,294     (39,345
  

 

 

   

 

 

 

Net Change in Cash and Cash Equivalents

     90,441        (158,157

Cash and Cash Equivalents at Beginning of Period

     174,711        332,868   
  

 

 

   

 

 

 

Cash and Cash Equivalents at End of Period

   $ 265,152      $ 174,711