Revenues by Segment
|
Computer Sciences Corporation |
November 3, 2005 |
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Revenues by Segment |
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(unaudited) |
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Second Quarter Ended |
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Sept. 30, |
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Oct. 1, |
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% of Total |
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(In millions) |
2005 |
|
2004 |
|
Fiscal 2006 |
|
Fiscal 2005 |
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|
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U.S. Commercial |
$1,005.7 |
|
$ 903.8 |
|
28% |
|
27% |
|
|
Europe |
983.7 |
|
1,034.9 |
|
28 |
|
30 |
|
|
Other International |
339.1 |
|
297.8 |
|
9 |
|
9 |
|
|
Global Commercial segment |
2,328.5 |
|
2,236.5 |
|
65 |
|
66 |
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|
|
|
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Department of Defense |
835.4 |
|
696.5 |
|
23 |
|
21 |
|
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Civil agencies |
383.4 |
|
419.8 |
|
11 |
|
12 |
|
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Other (1) |
25.3 |
|
41.2 |
|
1 |
|
1 |
|
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U.S. Federal segment |
1,244.1 |
|
1,157.5 |
|
35 |
|
34 |
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$3,572.6 |
|
$3,394.0 |
|
100% |
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100% |
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Six Months Ended |
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Sept. 30, |
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Oct. 1, |
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% of Total |
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(In millions) |
2005 |
|
2004 |
|
Fiscal 2006 |
|
Fiscal 2005 |
|
|
|
|
|
|
|
|
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U.S. Commercial |
$2,012.8 |
|
$1,788.3 |
|
28% |
|
27% |
|
Europe |
2,020.7 |
|
1,975.0 |
|
29 |
|
29 |
|
Other International |
656.6 |
|
601.9 |
|
9 |
|
9 |
|
Global Commercial segment |
4,690.1 |
|
4,365.2 |
|
66 |
|
65 |
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|
|
|
|
|
|
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Department of Defense |
1,629.3 |
|
1,422.3 |
|
22 |
|
22 |
|
Civil agencies |
760.1 |
|
822.6 |
|
11 |
|
12 |
|
Other (1) |
75.6 |
|
81.4 |
|
1 |
|
1 |
|
U.S. Federal segment |
2,465.0 |
|
2,326.3 |
|
34 |
|
35 |
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|
|
|
|
|
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|
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$7,155.1 |
|
$6,691.5 |
|
100% |
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100% |
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(1) |
Other revenues consist of state, local and foreign government as well as commercial contracts performed by the U.S. Federal reporting segment. |
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Consolidated Statements of Income |
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(unaudited) |
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(In millions except per-share amounts) |
Second Quarter Ended |
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Six Months Ended |
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Sept. 30, |
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Oct. 1, |
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Sept. 30, |
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Oct. 1, |
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|
2005 |
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2004 |
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2005 |
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2004 |
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Revenues |
$3,572.6 |
|
$3,394.0 |
|
$7,155.1 |
|
$6,691.5 |
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|
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|
|
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Costs of services |
2,876.7 |
|
2,752.6 |
|
5,803.4 |
|
5,416.4 |
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|
|
|
|
|
|
|
|
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Selling, general and administrative |
207.8 |
|
189.3 |
|
412.9 |
|
400.0 |
|
|
|
|
|
|
|
|
|
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Depreciation and amortization |
274.7 |
|
260.0 |
|
544.4 |
|
511.8 |
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|
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Interest expense |
25.9 |
|
40.2 |
|
50.0 |
|
79.4 |
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Interest income |
(9.0) |
|
(2.1) |
|
(14.3) |
|
(4.4) |
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Special items |
52.0 |
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52.0 |
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Total costs and expenses |
3,428.1 |
|
3,240.0 |
|
6,848.4 |
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6,403.2 |
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Income before taxes |
144.5 |
|
154.0 |
|
306.7 |
|
288.3 |
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|
|
|
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Taxes on income |
45.0 |
|
46.2 |
|
98.5 |
|
87.6 |
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|
|
|
|
|
|
|
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Income from continuing operations |
99.5 |
|
107.8 |
|
208.2 |
|
200.7 |
|
|
|
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|
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Discontinued operations, net of taxes |
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|
22.7 |
|
22.9 |
|
40.2 |
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|
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|
|
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Net income |
$ 99.5 |
|
$ 130.5 |
|
$ 231.1 |
|
$ 240.9 |
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Earnings per share: |
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Continuing operations |
$ 0.54 |
|
$ 0.57 |
|
$ 1.12 |
|
$ 1.06 |
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Discontinued operations |
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|
0.12 |
|
0.12 |
|
0.21 |
|
Basic* |
$ 0.54 |
|
$ 0.69 |
|
$ 1.25 |
|
$ 1.28 |
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Continuing operations |
$ 0.53 |
|
$ 0.56 |
|
$ 1.11 |
|
$ 1.05 |
|
Discontinued operations |
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|
0.12 |
|
0.12 |
|
0.21 |
|
Diluted* |
$ 0.53 |
|
$ 0.68 |
|
$ 1.24 |
|
$ 1.26 |
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Average common shares outstanding for: |
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Basic EPS |
184.871 |
|
188.981 |
|
185.191 |
|
188.583 |
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Diluted EPS |
186.541 |
|
191.118 |
|
186.871 |
|
190.484 |
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*Amounts may not add due to rounding |
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Selected Balance Sheet Data |
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(unaudited) |
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Sept. 30, |
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April 1, |
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(In millions) |
2005 |
|
2005 |
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Assets |
|
|
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Cash and cash equivalents |
$ 404.6 |
|
$ 1,010.3 |
|
Receivables, net of allowance for doubtful accounts |
3,724.1 |
|
3,537.7 |
|
Prepaid expenses and other current assets |
1,305.1 |
|
1,058.0 |
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Assets of operations held for sale |
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|
83.8 |
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Total current assets |
5,433.8 |
|
5,689.8 |
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Property and equipment, net |
2,359.6 |
|
2,365.4 |
|
Outsourcing contract costs, net |
1,196.7 |
|
1,279.6 |
|
Software, net |
467.1 |
|
461.3 |
|
Goodwill, net |
2,289.3 |
|
2,343.4 |
|
Other assets |
455.3 |
|
494.4 |
|
Total assets |
$12,201.8 |
|
$12,633.9 |
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Liabilities |
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Short-term debt and current maturities of long-term debt |
$ 72.1 |
|
$ 85.7 |
|
Accounts payable and other accrued expenses |
2,531.3 |
|
2,816.8 |
|
Deferred revenue |
629.4 |
|
562.7 |
|
Federal, state and foreign income taxes |
406.3 |
|
395.8 |
|
Liabilities of operations held for sale |
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|
16.9 |
|
Total current liabilities |
3,639.1 |
|
3,877.9 |
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Long-term debt, net |
1,301.3 |
|
1,303.0 |
|
Other long-term liabilities |
979.1 |
|
958.3 |
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Stockholders' equity |
6,282.3 |
|
6,494.7 |
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Total liabilities and stockholders' equity |
$12,201.8 |
|
$12,633.9 |
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Consolidated Statements of Cash Flows |
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(unaudited) |
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Six Months Ended |
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(In millions) |
Sept. 30, |
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Oct. 1, |
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|
2005 |
|
2004 |
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Cash flows from operating activities: |
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Net income |
$ 231.1 |
|
$ 240.9 |
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Adjustments to reconcile net income to net |
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cash provided by operating activities: |
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Depreciation and amortization and other non-cash charges |
612.2 |
|
558.1 |
|
Changes in assets and liabilities, net of effects of acquisitions: |
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Increase in assets |
(428.5) |
|
(437.5) |
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Increase (decrease) in liabilities |
(174.3) |
|
233.6 |
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Net cash provided by operating activities |
240.5 |
|
595.1 |
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Investing activities: |
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Purchases of property and equipment |
(455.4) |
|
(445.9) |
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Acquisitions, net of cash acquired |
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|
(20.5) |
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Dispositions |
5.0 |
|
1.0 |
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Outsourcing contracts |
(135.2) |
|
(149.3) |
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Software |
(88.4) |
|
(101.8) |
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Other investing cash flows |
51.5 |
|
(33.9) |
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Net cash used in investing activities |
(622.5) |
|
(750.4) |
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Financing activities: |
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Borrowings under lines of credit, net |
(12.7) |
|
2.0 |
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Principal payments on long-term debt |
(3.6) |
|
(2.3) |
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Proceeds from stock option and other common stock transactions |
17.1 |
|
33.9 |
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Acquisition of treasury stock |
(227.6) |
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Other financing cash flows |
4.1 |
|
2.5 |
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Net cash provided by (used in) financing activities |
(222.7) |
|
36.1 |
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Effect of exchange rate changes on cash and cash equivalents |
(1.0) |
|
1.9 |
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Net decrease in cash and cash equivalents |
(605.7) |
|
(117.3) |
|
Cash and cash equivalents at beginning of year |
1,010.3 |
|
562.8 |
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Cash and cash equivalents at end of period |
$ 404.6 |
|
$ 445.5 |
|
GAAP Reconciliations |
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(In millions) |
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EBITDA / EBIT (unaudited) |
Second Quarter Ended |
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Six Months Ended |
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|
Sept. 30, |
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Oct. 1, |
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Sept. 30, |
|
Oct. 1, |
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|
2005 |
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2004 |
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2005 |
|
2004 |
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EBITDA and special items |
$ 488.1 |
|
$ 452.1 |
|
$ 938.8 |
|
$ 875.1 |
|
Special items |
52.0 |
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|
52.0 |
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|
|
EBITDA |
436.1 |
|
452.1 |
|
886.8 |
|
875.1 |
|
Depreciation and amortization |
274.7 |
|
260.0 |
|
544.4 |
|
511.8 |
|
EBIT |
161.4 |
|
192.1 |
|
342.4 |
|
363.3 |
|
Interest, net |
16.9 |
|
38.1 |
|
35.7 |
|
75.0 |
|
Income Before Taxes |
144.5 |
|
154.0 |
|
306.7 |
|
288.3 |
|
Taxes on income |
45.0 |
|
46.2 |
|
98.5 |
|
87.6 |
|
Income from continuing operations |
99.5 |
|
107.8 |
|
208.2 |
|
200.7 |
|
Discontinued operations, net of taxes |
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|
22.7 |
|
22.9 |
|
40.2 |
|
Net Income |
$ 99.5 |
|
$ 130.5 |
|
$ 231.1 |
|
$ 240.9 |
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Free Cash Flow (unaudited) |
Six Months Ended |
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Sept. 30, |
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Oct. 1, |
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2005 |
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2004 |
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Free Cash Flow |
$(387.0) |
|
$ (81.9) |
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Net cash used in investing activities |
622.5 |
|
750.4 |
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Acquisition, net of cash acquired |
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(20.5) |
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Dispositions |
5.0 |
|
1.0 |
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Available-for-sale securities* |
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(53.9) |
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Net cash provided by operating activities |
$ 240.5 |
|
$ 595.1 |
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*As a result of guidance issued by the SEC in its March 4, 2005 "Current Accounting and Disclosure Issues" the Company reclassified certain securities held on April 2, 2004 and September 30, 2005 from cash to available-for-sale investments. This reclassification increased cash used in investing activities for the six months ended September 30, 2005. The Company believes it is appropriate to exclude such cash flows from its measurement of free cash flows. |
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Earnings per Share Reconciliation (unaudited) |
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The following table is presented to illustrate the impact of the Nortel impairment charge, as discussed in this press release, on earnings per share. It also provides a reconciliation of the earnings per share amount relating to this item to earnings per share for continuing operations. The earnings per share amounts presented below include non-GAAP measures. This table should be read in conjunction with the Consolidated Statement of Income within this release on which the GAAP earnings per share measures are presented. Earnings per share before special items provides a basis for comparing current operating performance to past and future operating performance. |
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Second Quarter Ended |
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Six Months Ended |
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September 30, 2005 |
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September 30, 2005 |
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EPS |
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EPS |
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Amount |
|
(diluted) |
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Amount |
|
(diluted) |
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Net income and EPS (diluted), as reported |
$ 99.5 |
|
$ 0.53 |
|
$ 231.1 |
|
$ 1.24 |
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Less: Gain on discontinued operations |
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|
22.9 |
|
0.12 |
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|
|
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|
|
|
|
|
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Income from continuing operations |
99.5 |
|
0.53 |
|
208.2 |
|
1.11 |
|
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|
|
|
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Add back: Special items |
33.1 |
|
0.18 |
|
33.1 |
|
0.18 |
|
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Income from continuing operations before |
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|
|
|
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special items |
$ 132.6 |
|
$ 0.71 |
|
$ 241.3 |
|
$ 1.29 |
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Notes: |
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All figures are net of taxes. |
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Figures are in millions except per-share amounts. |
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Amounts may not add due to rounding. |
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