Exhibit 99
Spirit AeroSystems Holdings, Inc.
3801 S. Oliver
Wichita, KS 67210
www.spiritaero.com
3801 S. Oliver
Wichita, KS 67210
www.spiritaero.com
Spirit AeroSystems Holdings, Inc. Reports Third Quarter 2011 Financial Results; Reports
Revenues of $1.130 billion and Fully Diluted EPS of $0.47 Per Share
| • | Third Quarter 2011 Revenues of $1.130 billion | |
| • | Operating Income of $121 million; Operating Margins of 10.7 percent | |
| • | Fully-Diluted Earnings Per Share of $0.47 | |
| • | Cash and Cash Equivalents were $138 million | |
| • | Total backlog of approximately $30 billion |
Wichita, Kan., Nov. 3, 2011 — Spirit AeroSystems Holdings, Inc. [NYSE: SPR] reported third
quarter 2011 financial results reflecting solid core operating performance and strong demand for
large commercial aircraft.
Spirit’s third quarter 2011 revenues were $1.130 billion, up from $1.002 billion for the same
period of 2010 as the company benefited from higher production deliveries during the quarter.
Operating income was $121 million, compared to $82 million for the same period in 2010,
primarily driven by increased volume and model mix. In comparison, the third quarter of 2010
operating income included a $6 million one-time expense and a $4 million unfavorable cumulative
catch-up adjustment associated with new program development.
Table 1. Summary Financial Results (unaudited)
| 3rd Quarter | Nine Months | |||||||||||||||||||||||
| ($ in millions, except per share data) | 2011 | 2010 | Change | 2011 | 2010 | Change | ||||||||||||||||||
Revenues |
$ | 1,130 | $ | 1,002 | 13 | % | $ | 3,645 | $ | 3,101 | 18 | % | ||||||||||||
Operating Income |
$ | 121 | $ | 82 | 46 | % | $ | 254 | $ | 261 | (3% | ) | ||||||||||||
Operating Income as a % of
Revenues |
10.7 | % | 8.2 | % | 250 BPS | 7.0 | % | 8.4 | % | (140) BPS | ||||||||||||||
Net Income |
$ | 67 | $ | 46 | 45 | % | $ | 132 | $ | 157 | (16% | ) | ||||||||||||
Net Income as a % of Revenues |
6.0 | % | 4.6 | % | 140 BPS | 3.6 | % | 5.1 | % | (150) BPS | ||||||||||||||
Earnings per Share (Fully Diluted) |
$ | 0.47 | $ | 0.33 | 42 | % | $ | 0.93 | $ | 1.11 | (16% | ) | ||||||||||||
Fully Diluted Weighted Avg Share
Count |
142.2 | 141.5 | 142.3 | 140.9 | ||||||||||||||||||||
Page 1
Net income for the quarter was $67 million, or $0.47 per fully diluted share, compared to
$46 million, or $0.33 per fully diluted share, in the same period of 2010. Current quarter net
income reflects higher interest expense associated with increased long-term debt, partially offset
by a lower effective tax rate as compared to the third quarter of 2010. (Table 1)
“This quarter marked a number of important milestones, including the certification of the
787-8 and 747-8 Freighter, the initial delivery of a 787-8 to an airline customer and the
announcement of the 737 MAX, where we look to play a significant role on the derivative that
extends the life of this very successful platform,” said President and Chief Executive Officer Jeff
Turner. “For the 747-8 and 787-8, these are notable achievements that enable us to move on to the
programs’ production phase where we can begin to realize their long-term value.”
“Our other development programs continue to make progress toward important near-term
milestones in testing and certification. We are focused on supporting our customers in meeting
these milestones and positioning these programs for long-term success,” Turner continued.
“Our backlog of $30 billion reflects the strong global demand for commercial aircraft and
positions us well to realize the long-term value of these core programs for our customers,
shareholders, and employees,” Turner concluded.
Spirit’s backlog at the end of the third quarter of 2011 increased by 4 percent to $30 billion
as orders exceeded deliveries. Spirit calculates its backlog based on contractual prices for
products and volumes from the published firm order backlogs of Airbus and Boeing, along with firm
orders from other customers.
Spirit updated its contract profitability estimates during the third quarter of 2011,
resulting in a net pre-tax $4 million favorable cumulative catch-up adjustment and an additional
$10 million forward-loss on the CH-53K program due to a shift in the make versus buy strategy in
the development phase of the program. In comparison, Spirit recognized a ($4) million unfavorable
cumulative catch-up adjustment for the third quarter of 2010.
Page 2
Cash flow from operations was a $66 million source of cash for the third quarter of 2011,
compared to a $122 million use of cash for the third quarter of 2010. The current quarter working capital reflects increased inventory offset by favorable accounts receivable and the timing of payables.
(Table 2)
Table 2. Cash Flow and Liquidity
| 3rd Quarter | Nine Months | |||||||||||||||
| ($ in millions) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Cash Flow from Operations |
$ | 66 | $ | ( 122 | ) | $ | ( 176 | ) | $ | ( 239 | ) | |||||
Purchases of Property, Plant & Equipment |
$ | ( 80 | ) | $ | ( 52 | ) | $ | ( 164 | ) | $ | ( 183 | ) | ||||
| September 29, | December 31, | |||||||
| Liquidity | 2011 | 2010 | ||||||
Cash |
$ | 138 | $ | 482 | ||||
Total Debt |
$ | 1,204 | $ | 1,197 | ||||
Cash balances at the end of the quarter were $138 million while the company’s $650
million revolving credit facility remained undrawn. Approximately $20 million of the credit
facility is reserved for financial letters of credit. Debt balances at the end of the third
quarter were $1,204 million.
The company’s credit rating remains unchanged at the end of the third quarter 2011 with a BB
rating, stable outlook by Standard & Poor’s and a Ba2 rating, stable outlook by Moody’s Investor
Services.
Page 3
Financial Outlook
Spirit revenue guidance for the full-year 2011 is updated and expected to be approximately
$4.7 billion based on Boeing’s 2011 delivery guidance of ~480 aircraft; expected B787 ship set
deliveries; expected Airbus deliveries in 2011 of approximately 520 to 530 aircraft; internal
Spirit forecasts for other customer production activities; expected non-production revenues; and
foreign exchange rates consistent with those in the third quarter of 2011.
Fully diluted earnings per share guidance for 2011 remains unchanged at $1.40-$1.50.
Guidance for cash flow from operations, less capital expenditures, is expected to be between a
$250 and $300 million use of cash in the aggregate, with capital expenditures of approximately $250
million.
The 2011 forecasted effective tax rate is updated to approximately 31 percent. (Table 3)
Risk to our financial
guidance includes, among other factors; 787 delivery volumes; higher
than forecast non-recurring and recurring costs on our development programs; mid-range business jet
market risks; and our ability to achieve anticipated productivity and cost improvements.
| Table 3. Financial Outlook | 2010 Actual | 2011 Guidance | ||||||
Revenues |
$4.2 billion | ~$4.7 billion | ||||||
Earnings Per Share (Fully Diluted) |
$1.55 | $1.40 - $1.50 | ||||||
Effective Tax Rate |
26.3% | ~ 31% | ||||||
Cash Flow from Operations |
$125 million | ($50)- $0 million | ||||||
Capital Expenditures |
$288 million | ~$250 million | ||||||
Page 4
Cautionary Statement Regarding Forward-Looking Statements
This press release contains “forward-looking statements.” Forward-looking statements reflect our
current expectations or forecasts of future events. Forward-looking statements generally can be
identified by the use of forward-looking terminology such as “may,” “will,” “expect,” “anticipate,”
“intend,” “estimate,” “believe,” “project,” “continue,” “plan,” “forecast,” or other similar words,
or the negative thereof, unless the context requires otherwise. These statements reflect
management’s current views with respect to future events and are subject to risks and
uncertainties, both known and unknown. Our actual results may vary materially from those
anticipated in forward-looking statements. We caution investors not to place undue reliance on any
forward-looking statements. Important factors that could cause actual results to differ materially
from those reflected in such forward-looking statements and that should be considered in evaluating
our outlook include, but are not limited to, the following: our ability to continue to grow our
business and execute our growth strategy, including the timing, execution and profitability of new
programs; our ability to perform our obligations and manage costs related to our new commercial and
business aircraft development programs and the related recurring production; margin pressures and
the potential for additional forward-losses on aircraft development programs; our ability to
accommodate, and the cost of accommodating, announced increases in the build rates of certain
aircraft, including, but not limited to, the Boeing B737, B747, B767 and B777 programs, and the
Airbus A320 and A380 programs; the effect on business and commercial aircraft demand and build
rates of continuing weakness in the global economy and economic challenges facing commercial
airlines, a lack of business and consumer confidence, and the impact of continuing instability in
global financial and credit markets, including, but not limited to, any failure to avert a
sovereign debt crisis in Europe; customer cancellations or deferrals as a result of global
economic uncertainty; the success and timely execution of key milestones such as deliveries of
Boeing’s new B787 and certification and delivery of Airbus’ new A350 XWB aircraft programs,
including first flight, certification and first delivery for the Airbus A350 XWB, receipt of
necessary regulatory approvals, and customer adherence to their announced schedules; our ability to
enter into profitable supply arrangements with additional customers; the ability of all parties to
satisfy their performance requirements under existing supply contracts with Boeing and Airbus, our
two major customers, and other customers and the risk of nonpayment by such customers; any adverse
impact on Boeing’s and Airbus’ production of aircraft resulting from cancellations, deferrals or
reduced orders by their customers or from labor disputes or acts of terrorism; any adverse impact
on the demand for air travel or our operations from the outbreak of diseases or epidemic or
pandemic outbreaks; returns on pension plan assets and impact of future discount rate changes on
pension obligations; our ability to borrow additional funds or refinance debt; competition from
original equipment manufacturers and other aerostructures suppliers; the effect of governmental
laws, such as U.S. export control laws and U.S. and foreign anti-bribery laws such as the Foreign
Corrupt Practices Act and United Kingdom Bribery Act, environmental laws and agency regulations,
both in the U.S. and abroad; the cost and availability of raw materials and purchased components;
our ability to successfully extend or renegotiate our primary collective bargaining contracts with
our labor unions; our ability to recruit and retain highly skilled employees and our relationships
with the
unions representing many of our employees; spending by the U.S. and other governments on
defense; the possibility that our cash flows and borrowing facilities may not be adequate for our
additional capital needs or for payment of interest on and principal of our indebtedness; our
exposure under our existing senior secured revolving credit facility to higher interest payments
should interest rates increase substantially; the effectiveness of our interest rate and foreign
currency hedging programs; the outcome or impact of ongoing or future litigation, claims and
regulatory actions; and our exposure to potential product liability and warranty claims. These
factors are not exhaustive and it is not possible for us to predict all factors that could cause
actual results to differ materially from those reflected in our forward-looking statements. These
factors speak only as of the date hereof, and new factors may emerge or changes to the foregoing
factors may occur that could impact our business. As with any projection or forecast, these
statements are inherently susceptible to uncertainty and changes in circumstances. Except to the
extent required by law, we undertake no obligation to, and expressly disclaim any obligation to,
publicly update or revise any forward-looking statements, whether as a result of new information,
future events or otherwise. You should review carefully the sections captioned “Risk Factors” in
our 2010 Form 10-K filed February 22, 2011 and our second quarter 2011 Form 10-Q filed August 5 for
a more complete discussion of these and other factors that may affect our business.
Page 5
Appendix
Segment Results
Fuselage Systems
Fuselage Systems segment revenues for the third quarter of 2011 were $542 million, up 12
percent from the same period last year, primarily driven by higher twin-aisle production volumes.
Operating margin for the third quarter of 2011 was 14.7 percent as compared to 13.9 percent during
the same period of 2010. The segment recorded an additional pre-tax $10 million forward-loss charge
due to a shift in the make versus buy strategy of the development phase of the CH-53K program,
which was partially offset by a favorable pre-tax $1 million cumulative catch-up adjustment.
Propulsion Systems
Propulsion Systems segment revenues for the third quarter of 2011 were $309 million, up 22
percent from the same period last year, largely driven by higher twin-aisle production volumes and
increased aftermarket volumes. Operating margin for the third quarter of 2011 was 17.1 percent as
compared to 12.1 percent in the third quarter of 2010. In the third quarter of 2011 the segment
realized a favorable pre-tax $5 million cumulative catch-up adjustment.
Wing Systems
Wing Systems segment revenues for the third quarter of 2011 were $277 million, up 5 percent
from the same period last year, primarily driven by higher twin-aisle production volumes. Operating
margin for the third quarter of 2011 was 8.2 percent as compared to 9.8 percent during the same
period of 2010, as the segment recorded an unfavorable pre-tax $2 million cumulative catch-up
adjustment in 2011.
Page 6
| Table 4. Segment Reporting | (unaudited) | (unaudited) | ||||||||||||||||||||||
| 3rd Quarter | Nine Months | |||||||||||||||||||||||
| ($ in millions) | 2011 | 2010 | Change | 2011 | 2010 | Change | ||||||||||||||||||
Segment Revenues |
||||||||||||||||||||||||
Fuselage Systems |
$ | 541.6 | $ | 484.6 | 11.8 | % | $ | 1,842.7 | $ | 1,516.0 | 21.6 | % | ||||||||||||
Propulsion Systems |
$ | 309.1 | $ | 252.6 | 22.4 | % | $ | 899.8 | $ | 799.0 | 12.6 | % | ||||||||||||
Wing Systems |
$ | 276.8 | $ | 263.9 | 4.9 | % | $ | 894.2 | $ | 779.7 | 14.7 | % | ||||||||||||
All Other |
$ | 2.2 | $ | 0.9 | $ | 8.2 | $ | 6.6 | ||||||||||||||||
Total Segment Revenues |
$ | 1,129.7 | $ | 1,002.0 | 12.7 | % | $ | 3,644.9 | $ | 3,101.3 | 17.5 | % | ||||||||||||
Segment Earnings from Operations |
||||||||||||||||||||||||
Fuselage Systems |
$ | 79.6 | $ | 67.6 | 17.8 | % | $ | 221.7 | $ | 224.4 | (1.2 | %) | ||||||||||||
Propulsion Systems |
$ | 52.8 | $ | 30.6 | 72.5 | % | $ | 141.8 | $ | 97.6 | 45.3 | % | ||||||||||||
Wing Systems |
$ | 22.6 | $ | 25.9 | (12.7 | %) | $ | 8.8 | $ | 73.1 | (88.0 | %) | ||||||||||||
All Other |
$ | 1.3 | $ | (0.1 | ) | $ | 1.8 | $ | (2.3 | ) | ||||||||||||||
Total Segment Operating Earnings |
$ | 156.3 | $ | 124.0 | 26.0 | % | $ | 374.1 | $ | 392.8 | (4.8 | %) | ||||||||||||
Unallocated Corporate SG&A Expense |
$ | (35.1 | ) | $ | (34.4 | ) | 2.0 | % | $ | (107.8 | ) | $ | (104.1 | ) | 3.6 | % | ||||||||
Unallocated Research & Development Expense |
$ | (0.7 | ) | $ | (0.7 | ) | 0.0 | % | $ | (1.7 | ) | $ | (2.2 | ) | (22.7 | %) | ||||||||
Unallocated Cost of Sales |
$ | 0.0 | $ | (6.5 | ) | (100.0 | %) | $ | (10.9 | ) | $ | (25.4 | ) | (57.1 | %) | |||||||||
Total Earnings from Operations |
$ | 120.5 | $ | 82.4 | 46.2 | % | $ | 253.7 | $ | 261.1 | (2.8 | %) | ||||||||||||
Segment Operating Earnings as % of Revenues |
||||||||||||||||||||||||
Fuselage Systems |
14.7 | % | 13.9 | % | 80 BPS | 12.0 | % | 14.8 | % | (280) BPS | ||||||||||||||
Propulsion Systems |
17.1 | % | 12.1 | % | 500 BPS | 15.8 | % | 12.2 | % | 360 BPS | ||||||||||||||
Wing Systems |
8.2 | % | 9.8 | % | (160) BPS | 1.0 | % | 9.4 | % | (840) BPS | ||||||||||||||
All Other |
59.1 | % | (11.1 | %) | 22.0 | % | (34.8 | %) | ||||||||||||||||
Total Segment Operating Earnings as % of
Revenues |
13.8 | % | 12.4 | % | 140 BPS | 10.3 | % | 12.7 | % | (240) BPS | ||||||||||||||
Total Operating Earnings as % of Revenues |
10.7 | % | 8.2 | % | 250 BPS | 7.0 | % | 8.4 | % | (140) BPS | ||||||||||||||
Contact information:
Investor Relations: Coleen Tabor (316) 523-7040
Media: Ken
Evans (316) 523-4070
On the web: http://www.spiritaero.com
Page 7
Spirit Ship Set Deliveries
(One Ship Set equals One Aircraft)
(One Ship Set equals One Aircraft)
2010 Spirit AeroSystems Deliveries
| 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Total 2010 | ||||||||||||||||
B737 |
94 | 96 | 93 | 89 | 372 | |||||||||||||||
B747 |
3 | 1 | 2 | 4 | 10 | |||||||||||||||
B767 |
3 | 4 | 3 | 5 | 15 | |||||||||||||||
B777 |
21 | 18 | 14 | 14 | 67 | |||||||||||||||
B787 |
5 | 4 | 4 | 3 | 16 | |||||||||||||||
Total |
126 | 123 | 116 | 115 | 480 | |||||||||||||||
A320 Family |
102 | 95 | 75 | 96 | 368 | |||||||||||||||
A330/340 |
25 | 23 | 5 | 19 | 72 | |||||||||||||||
A380 |
1 | 5 | 7 | 5 | 18 | |||||||||||||||
Total |
128 | 123 | 87 | 120 | 458 | |||||||||||||||
Business/Regional Jet* |
5 | 6 | 6 | 10 | 27 | |||||||||||||||
Total Spirit |
259 | 252 | 209 | 245 | 965 | |||||||||||||||
2011 Spirit AeroSystems Deliveries
| 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD 2011 | ||||||||||||||||
B737 |
93 | 97 | 95 | 285 | ||||||||||||||||
B747 |
4 | 3 | 4 | 11 | ||||||||||||||||
B767 |
5 | 6 | 6 | 17 | ||||||||||||||||
B777 |
16 | 22 | 21 | 59 | ||||||||||||||||
B787 |
6 | 7 | 5 | 18 | ||||||||||||||||
Total |
124 | 135 | 131 | 390 | ||||||||||||||||
A320 Family |
103 | 91 | 103 | 297 | ||||||||||||||||
A330/340 |
18 | 26 | 24 | 68 | ||||||||||||||||
A380 |
6 | 5 | 7 | 18 | ||||||||||||||||
Total |
127 | 122 | 134 | 383 | ||||||||||||||||
Business/Regional Jet |
8 | 10 | 8 | 26 | ||||||||||||||||
Total Spirit |
259 | 267 | 273 | 799 | ||||||||||||||||
| * | Previously included Hawker-Beechcraft products only. Now includes Spirit deliveries associated with business and regional jets. |
Page 8
Spirit AeroSystems Holdings, Inc.
Condensed Consolidated Statements of Operations
(unaudited)
Condensed Consolidated Statements of Operations
(unaudited)
| For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
| September 29, 2011 | September 30, 2010 | September 29, 2011 | September 30, 2010 | |||||||||||||
| ($ in millions, except per share data) | ||||||||||||||||
Net revenues |
$ | 1,129.7 | $ | 1,002.0 | $ | 3,644.9 | $ | 3,101.3 | ||||||||
Operating costs and expenses: |
||||||||||||||||
Cost of sales |
963.0 | 868.5 | 3,245.6 | 2,689.2 | ||||||||||||
Selling, general and administrative |
38.4 | 38.5 | 118.5 | 115.9 | ||||||||||||
Research and development |
7.8 | 12.6 | 27.1 | 35.1 | ||||||||||||
Total operating costs and expenses |
1,009.2 | 919.6 | 3,391.2 | 2,840.2 | ||||||||||||
Operating income |
120.5 | 82.4 | 253.7 | 261.1 | ||||||||||||
Interest expense and financing fee
amortization |
(19.0 | ) | (12.8 | ) | (61.6 | ) | (40.6 | ) | ||||||||
Interest income |
— | — | 0.2 | 0.2 | ||||||||||||
Other income (expense), net |
(1.6 | ) | 2.5 | — | (0.3 | ) | ||||||||||
Income before income taxes and equity in
net loss of affiliate |
99.9 | 72.1 | 192.3 | 220.4 | ||||||||||||
Income tax provision |
(32.4 | ) | (25.4 | ) | (59.6 | ) | (62.8 | ) | ||||||||
Income before equity in net loss of
affiliate |
67.5 | 46.7 | 132.7 | 157.6 | ||||||||||||
Equity in net loss of affiliate |
(0.2 | ) | (0.3 | ) | (0.7 | ) | (0.6 | ) | ||||||||
Net income |
$ | 67.3 | $ | 46.4 | $ | 132.0 | $ | 157.0 | ||||||||
Earnings per share |
||||||||||||||||
Basic |
$ | 0.48 | $ | 0.33 | $ | 0.93 | $ | 1.13 | ||||||||
Shares |
139.4 | 138.3 | 139.1 | 137.7 | ||||||||||||
Diluted |
$ | 0.47 | $ | 0.33 | $ | 0.93 | $ | 1.11 | ||||||||
Shares |
142.2 | 141.5 | 142.3 | 140.9 | ||||||||||||
Page 9
Spirit AeroSystems Holdings, Inc.
Condensed Consolidated Balance Sheets
(unaudited)
Condensed Consolidated Balance Sheets
(unaudited)
| September 29, | December 31, | |||||||
| 2011 | 2010 | |||||||
| ($ in millions) | ||||||||
Current assets |
||||||||
Cash and cash equivalents |
$ | 138.3 | $ | 481.6 | ||||
Accounts receivable, net |
333.2 | 200.2 | ||||||
Inventory, net |
2,571.9 | 2,507.9 | ||||||
Other current assets |
98.5 | 105.0 | ||||||
Total current assets |
3,141.9 | 3,294.7 | ||||||
Property, plant and equipment, net |
1,542.4 | 1,470.0 | ||||||
Pension assets |
191.5 | 172.4 | ||||||
Other assets |
116.0 | 164.9 | ||||||
Total assets |
$ | 4,991.8 | $ | 5,102.0 | ||||
Current liabilities |
||||||||
Accounts payable |
$ | 521.7 | $ | 443.5 | ||||
Accrued expenses |
236.0 | 219.6 | ||||||
Current portion of long-term debt |
14.7 | 9.5 | ||||||
Advance payments, short-term |
7.8 | 169.4 | ||||||
Deferred revenue, short-term |
30.9 | 302.6 | ||||||
Other current liabilities |
12.4 | 19.5 | ||||||
Total current liabilities |
823.5 | 1,164.1 | ||||||
Long-term debt |
1,189.6 | 1,187.3 | ||||||
Advance payments, long-term |
658.1 | 655.2 | ||||||
Deferred revenue and other deferred credits |
33.8 | 29.0 | ||||||
Pension/OPEB obligation |
77.6 | 72.5 | ||||||
Other liabilities |
253.8 | 183.0 | ||||||
Equity |
||||||||
Preferred stock, par value $0.01, 10,000,000 shares
authorized, no shares
issued |
— | — | ||||||
Common stock, Class A par value $0.01, 200,000,000
shares authorized,
118,507,150 and 107,201,314 issued, respectively |
1.2 | 1.1 | ||||||
Common stock, Class B par value $0.01, 150,000,000
shares authorized,
24,371,445 and 34,897,388 shares issued, respectively |
0.2 | 0.3 | ||||||
Additional paid-in capital |
993.3 | 983.6 | ||||||
Accumulated other comprehensive loss |
(72.5 | ) | (75.3 | ) | ||||
Retained earnings |
1,032.7 | 900.7 | ||||||
Total shareholders’ equity |
1,954.9 | 1,810.4 | ||||||
Noncontrolling interest |
0.5 | 0.5 | ||||||
Total equity |
1,955.4 | 1,810.9 | ||||||
Total liabilities and equity |
$ | 4,991.8 | $ | 5,102.0 | ||||
Page 10
Spirit AeroSystems Holdings, Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited)
Condensed Consolidated Statements of Cash Flows
(unaudited)
| For the Nine Months Ended | ||||||||
| September 29, 2011 | September 30, 2010 | |||||||
| ($ in millions) | ||||||||
Operating activities |
||||||||
Net income |
$ | 132.0 | $ | 157.0 | ||||
Adjustments to reconcile net income to net cash (used in) operating activities |
||||||||
Depreciation expense |
97.0 | 84.5 | ||||||
Amortization expense |
10.6 | 9.2 | ||||||
Employee stock compensation expense |
8.6 | 23.5 | ||||||
Excess tax benefits from share-based payment arrangements |
(1.2 | ) | (4.9 | ) | ||||
Loss on disposition of assets |
0.8 | — | ||||||
Loss from foreign currency transactions |
1.2 | 4.4 | ||||||
Deferred taxes |
16.0 | 6.1 | ||||||
Long-term tax (benefit) provision |
8.9 | (17.6 | ) | |||||
Pension and other post-retirement benefits, net |
(7.4 | ) | (6.3 | ) | ||||
Grant income |
(4.0 | ) | (1.9 | ) | ||||
Equity in net loss of affiliate |
0.7 | 0.6 | ||||||
Changes in assets and liabilities |
||||||||
Accounts receivable |
(127.9 | ) | (130.5 | ) | ||||
Inventory, net |
(61.1 | ) | (268.1 | ) | ||||
Accounts payable and accrued liabilities |
93.7 | 12.7 | ||||||
Advance payments |
(158.7 | ) | (116.6 | ) | ||||
Deferred revenue and other deferred credits |
(265.1 | ) | (38.0 | ) | ||||
Other |
80.1 | 46.9 | ||||||
Net cash (used in) operating activities |
(175.8 | ) | (239.0 | ) | ||||
Investing activities |
||||||||
Purchase of property, plant and equipment |
(164.2 | ) | (183.0 | ) | ||||
Other |
0.4 | (0.5 | ) | |||||
Net cash (used in) investing activities |
(163.8 | ) | (183.5 | ) | ||||
Financing activities |
||||||||
Proceeds from revolving credit facility |
— | 125.0 | ||||||
Principal payments of debt |
(5.3 | ) | (8.0 | ) | ||||
Debt issuance and financing costs |
— | (0.2 | ) | |||||
Excess tax benefits from share-based payment arrangements |
1.2 | 4.9 | ||||||
Net cash provided by (used in) financing activities |
(4.1 | ) | 121.7 | |||||
Effect of exchange rate changes on cash and cash equivalents |
0.4 | (1.9 | ) | |||||
Net decrease in cash and cash equivalents for the period |
(343.3 | ) | (302.7 | ) | ||||
Cash and cash equivalents, beginning of the period |
481.6 | 369.0 | ||||||
Cash and cash equivalents, end of the period |
$ | 138.3 | $ | 66.3 | ||||
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