Full Press Release Details
Contact: John Lynch, Vice
President, Treasurer and Investor Relations, 508-482-2314
Waters Corporation (NYSE: WAT) Reports Third Quarter 2017 Financial Results
Company Delivers Strong Quarterly Revenue Growth and Profitability
Milford, Mass., October 24, 2017 - Waters Corporation (NYSE: WAT) reported third quarter 2017 sales of $566 million, a
7% increase versus sales of $527 million in the third quarter of 2016. Foreign currency translation increased sales growth by approximately 1% in the quarter. On a GAAP basis, diluted earnings per share (EPS) for the third quarter was up 10% to
$1.69 compared to $1.53 for the third quarter of 2016. On a non-GAAP basis, including the adjustments in the attached reconciliation, EPS increased 13% to $1.77 from $1.57 in the third quarter of 2016. On a
GAAP basis, net cash provided by operating activities for the third quarter increased 4% to $154 million from $149 million in the third quarter of 2016. On a non-GAAP basis, including the adjustments in the attached reconciliation, adjusted free
cash flow increased 5% to $134 million from $128 million in the third quarter of 2016. A description and reconciliation of GAAP to non-GAAP results is attached and can be found on the Company s website at
http://www.waters.com under the caption Investors.
Through the first nine months of 2017, sales for the Company were $1,622 million, up
5% compared with sales of $1,539 million in the first nine months of 2016. Foreign currency translation reduced sales growth by less than 1% during the first nine months of 2017. On a GAAP basis, EPS for the first nine months of 2017 was up 9%
to $4.63 compared to $4.26 for the first nine months of 2016. On a non-GAAP basis, including adjustments in the attached reconciliation, EPS for the first nine months of 2017 increased 13% to $4.98 as compared
to $4.41 for the first nine months of 2016. On a GAAP basis, net cash provided by operating activities for the first nine months of 2017 increased 8% to $505 million from $469 million in the first nine months of 2016. On a non-GAAP basis, including
the adjustments in the attached reconciliation, adjusted free cash flow increased 11% to $450 million from $404 million in the first nine months of 2016.
Commenting on the Company s performance, Chris O Connell, Chief Executive Officer said, We are pleased with our third quarter results,
featuring another quarter of strong overall constant currency sales and earnings per share growth. The quarter was highlighted by solid revenue growth from each of our major customer-defined end markets, balanced product growth between instrument
systems and recurring revenue, operating leverage and strong free cash flow generation.
Unless otherwise noted, sales growth percentages are
presented on an as reported basis and are the same as the sales growth percentages presented on a constant currency basis as compared with the same period in the prior year, each of which are detailed in the attached reconciliation of sales growth
rates to constant currency growth rates.
Results from the Company s markets in the quarter were highlighted by 7% sales growth (5% in constant
currency) from the broadly defined pharmaceutical market, 6% sales growth (5% in constant currency) from the industrial market and 15% sales growth (13% in constant currency) from governmental and academic markets. For the first nine months of 2017,
pharmaceutical market grew 6%, sales to the industrial market grew 5% (7% in constant currency), and sales to the governmental and academic markets grew 4% (2% in constant currency).
The Company s recurring revenues, the combination of service and chemistry consumables, posted 8% sales growth (7% in constant currency), while
instrument system sales grew 6% (5% in constant currency) in the quarter. For the first nine months of 2017, the Company s recurring revenues grew 6% (7% in constant currency), while instrument system sales grew by 5%.
Geographically, sales during the quarter grew 7% in Asia (8% in constant currency) and 20% in Europe (13% in constant currency), and were flat in the
Americas. For the first nine months of 2017, sales grew 11% in Asia (12% in constant currency) and 8% in Europe (9% in constant currency), and declined 2% in the Americas.
As communicated in a prior press release, Waters Corporation will webcast its third quarter 2017 financial results conference call this morning,
October 24, 2017 at 8:00 a.m. eastern time. To listen to the call, connect to www.waters.com, choose Investors and click on the Live Webcast. A replay will be available through October 31, 2017 at midnight eastern
time, similarly by webcast and also by phone at 203-369-1093.
Waters Corporation (NYSE: WAT), the world s leading specialty measurement company, has pioneered chromatography, mass
spectrometry and thermal analysis innovations serving the life, materials and food sciences for nearly 60 years. With approximately 7,000 employees worldwide, Waters operates directly in 31 countries, including 15 manufacturing facilities, with
products available in more than 100 countries.
Non-GAAP Financial Measures
This press release contains financial measures, such as constant currency growth rate, adjusted operating income, adjusted net income, adjusted earnings per
diluted share and free cash flow, among others, which are considered non-GAAP financial measures under applicable U.S. Securities and Exchange Commission rules and regulations. These non-GAAP financial measures should be considered supplemental to and not a substitute for financial information prepared in accordance with generally accepted accounting principles (GAAP). The Company s
definition of these non-GAAP measures may differ from similarly titled measures used by others. The non-GAAP financial measures used in this press release adjust for
specified items that can be highly variable or difficult to predict. The Company generally uses these non-GAAP financial measures to facilitate management s financial and operational decision-making,
including evaluation of Waters Corporation s historical operating results, comparison to competitors operating results and determination of management incentive compensation. These non-GAAP
financial measures reflect an additional way of viewing aspects of the Company s operations that, when viewed with GAAP results and the reconciliations to corresponding GAAP financial measures, may provide a more complete understanding of
factors and trends affecting Waters Corporation s business. Because non-GAAP financial measures exclude the effect of items that will increase or
decrease the Company s reported results of operations, management strongly encourages investors to review the Company s consolidated financial statements and publicly filed reports in
their entirety. Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the tables accompanying this release.
Cautionary Statement
This release may contain
forward-looking statements regarding future results and events. For this purpose, any statements that are not statements of historical fact may be deemed forward-looking statements. Without limiting the foregoing, the words,
feels , believes , anticipates , plans , expects , intends , suggests , appears , estimates , projects , and similar expressions, whether
in the negative or affirmative, are intended to identify forward-looking statements. The Company s actual future results may differ significantly from the results discussed in the forward-looking statements within this release for a variety of
reasons, including and without limitation, foreign exchange rate fluctuations potentially affecting translation of the Company s future non-U.S. operating results; the impact on demand among the
Company s various market sectors from economic, sovereign and political uncertainties; the effect on the Company s financial results from the United Kingdom voting to exit the European Union; fluctuations in expenditures by the
Company s customers, in particular large pharmaceutical companies; introduction of competing products by other companies and loss of market share; pressures on prices from competitors and/or customers; regulatory, economic and competitive
obstacles to new product introductions; other changes in demand from the effect of mergers and acquisitions by the Company s customers; increased regulatory burdens as the Company s business evolves, especially with respect to the U.S.
Food and Drug Administration and U.S. Environmental Protection Agency, among others; shifts in taxable income in jurisdictions with different effective tax rates; the outcome of tax examinations or changes in respective country legislation affecting
the Company s effective tax rate; the effect of the adoption of new accounting standards; the ability to access capital, maintain liquidity and service our debt in volatile market conditions, particularly in the U.S., as a large portion of the
Company s cash is held and operating cash flows are generated outside the U.S.; environmental and logistical obstacles affecting the distribution of products and risks associated with lawsuits and other legal actions, particularly involving
claims for infringement of patents and other intellectual property rights. Such factors and others are discussed more fully in the sections entitled Forward-Looking Statements and Risk Factors of the Company s annual
report on Form 10-K for the year ended December 31, 2016 as filed with the Securities and Exchange Commission, which Forward-Looking Statements and Risk Factors discussions are
incorporated by reference in this release. The forward-looking statements included in this release represent the Company s estimates or views as of the date of this release and should not be relied upon as representing the Company s
estimates or views as of any date subsequent to the date of this release.
Waters Corporation and Subsidiaries
Consolidated Statements of Operations
(In thousands, except per share data)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, 2017 | October 1, 2016 | September 30, 2017 | October 1, 2016 | |||||||||||||
| Net sales | $ | 565,584 | $ | 526,830 | $ | 1,621,803 | $ | 1,538,636 | ||||||||
| Costs and operating expenses: | ||||||||||||||||
| Cost of sales | 235,892 | 218,344 | 676,614 | 639,874 | ||||||||||||
| Selling and administrative expenses | 135,194 | 123,861 | 395,908 | 382,793 | ||||||||||||
| Research and development expenses | 33,782 | 30,418 | 97,471 | 92,434 | ||||||||||||
| Litigation provisions | 10,018 | |||||||||||||||
| Acquired in-process research and development | 5,000 | |||||||||||||||
| Purchased intangibles amortization | 1,682 | 2,476 | 5,104 | 7,531 | ||||||||||||
| Operating income | 159,034 | 151,731 | 431,688 | 416,004 | ||||||||||||
| Interest expense, net | (5,234 | ) | (6,281 | ) | (16,329 | ) | (18,469 | ) | ||||||||
| Income from operations before income taxes | 153,800 | 145,450 | 415,359 | 397,535 | ||||||||||||
| Provision for income taxes (a) | 17,696 | 20,594 | 41,876 | 50,410 | ||||||||||||
| Net income | $ | 136,104 | $ | 124,856 | $ | 373,483 | $ | 347,125 | ||||||||
| Net income per basic common share | $ | 1.71 | $ | 1.55 | $ | 4.67 | $ | 4.29 | ||||||||
| Weighted-average number of basic common shares | 79,712 | 80,677 | 79,908 | 80,923 | ||||||||||||
| Net income per diluted common share | $ | 1.69 | $ | 1.53 | $ | 4.63 | $ | 4.26 | ||||||||
| Weighted-average number of diluted common shares and equivalents | 80,521 | 81,388 | 80,660 | 81,573 |
Waters Corporation and Subsidiaries
Reconciliation of GAAP to Adjusted Non-GAAP
Net Sales by Operating Segment, Products & Services, Geography and Markets
Three Months Ended September 30, 2017 and October 1, 2016
| Three Months Ended | Percent | Currency | Constant Currency | |||||||||||||||||
| September 30, 2017 | October 1, 2016 | Change | Impact | Growth Rate (a) | ||||||||||||||||
| NET SALES - OPERATING SEGMENT | ||||||||||||||||||||
| Waters | $ | 503,904 | $ | 470,913 | 7 | % | $ | 6,570 | 6 | % | ||||||||||
| TA | 61,680 | 55,917 | 10 | % | 702 | 9 | % | |||||||||||||
| Total | $ | 565,584 | $ | 526,830 | 7 | % | $ | 7,272 | 6 | % | ||||||||||
| NET SALES - PRODUCTS & SERVICES | ||||||||||||||||||||
| Instruments | $ | 282,671 | $ | 265,820 | 6 | % | $ | 4,442 | 5 | % | ||||||||||
| Service | 190,034 | 176,896 | 7 | % | 2,278 | 6 | % | |||||||||||||
| Chemistry | 92,879 | 84,114 | 10 | % | 552 | 10 | % | |||||||||||||
| Total Recurring | 282,913 | 261,010 | 8 | % | 2,830 | 7 | % | |||||||||||||
| Total | $ | 565,584 | $ | 526,830 | 7 | % | $ | 7,272 | 6 | % | ||||||||||
| NET SALES - GEOGRAPHY | ||||||||||||||||||||
| Asia | $ | 209,339 | $ | 195,515 | 7 | % | $ | (2,113 | ) | 8 | % | |||||||||
| Americas | 203,013 | 203,124 | 0 | % | 404 | 0 | % | |||||||||||||
| Europe | 153,232 | 128,191 | 20 | % | 8,981 | 13 | % | |||||||||||||
| Total | $ | 565,584 | $ | 526,830 | 7 | % | $ | 7,272 | 6 | % | ||||||||||
| NET SALES - MARKETS | ||||||||||||||||||||
| Pharmaceutical | $ | 321,963 | $ | 302,146 | 7 | % | $ | 5,165 | 5 | % | ||||||||||
| Industrial | 168,349 | 159,013 | 6 | % | 795 | 5 | % | |||||||||||||
| Government & Academic | 75,272 | 65,671 | 15 | % | 1,312 | 13 | % | |||||||||||||
| Total | $ | 565,584 | $ | 526,830 | 7 | % | $ | 7,272 | 6 | % |
Waters Corporation and Subsidiaries
Reconciliation of GAAP to Adjusted Non-GAAP
Net Sales by Operating Segment, Products & Services, Geography and Markets
Nine Months Ended September 30, 2017 and October 1, 2016
| Nine Months Ended | Percent Change | Current Period Currency Impact | Constant Currency Growth Rate (a) | |||||||||||||||||
| September 30, 2017 | October 1, 2016 | |||||||||||||||||||
| NET SALES OPERATING SEGMENT | ||||||||||||||||||||
| Waters | $ | 1,445,110 | $ | 1,373,837 | 5 | % | $ | (5,884 | ) | 6 | % | |||||||||
| TA | 176,693 | 164,799 | 7 | % | (104 | ) | 7 | % | ||||||||||||
| Total | $ | 1,621,803 | $ | 1,538,636 | 5 | % | $ | (5,988 | ) | 6 | % | |||||||||
| NET SALES PRODUCTS & SERVICES | ||||||||||||||||||||
| Instruments | $ | 801,078 | $ | 762,166 | 5 | % | $ | 243 | 5 | % | ||||||||||
| Service | 549,119 | 521,158 | 5 | % | (4,659 | ) | 6 | % | ||||||||||||
| Chemistry | 271,606 | 255,312 | 6 | % | (1,572 | ) | 7 | % | ||||||||||||
| Total Recurring | 820,725 | 776,470 | 6 | % | (6,231 | ) | 7 | % | ||||||||||||
| Total | $ | 1,621,803 | $ | 1,538,636 | 5 | % | $ | (5,988 | ) | 6 | % | |||||||||
| NET SALES GEOGRAPHY | ||||||||||||||||||||
| Asia | $ | 620,148 | $ | 557,336 | 11 | % | $ | (3,317 | ) | 12 | % | |||||||||
| Americas | 574,249 | 584,760 | (2 | %) | 169 | (2 | %) | |||||||||||||
| Europe | 427,406 | 396,540 | 8 | % | (2,840 | ) | 9 | % | ||||||||||||
| Total | $ | 1,621,803 | $ | 1,538,636 | 5 | % | $ | (5,988 | ) | 6 | % | |||||||||
| NET SALES MARKETS | ||||||||||||||||||||
| Pharmaceutical | $ | 921,423 | $ | 871,241 | 6 | % | $ | (1,319 | ) | 6 | % | |||||||||
| Industrial | 504,183 | 479,220 | 5 | % | (8,559 | ) | 7 | % | ||||||||||||
| Governmental & Academic | 196,197 | 188,175 | 4 | % | 3,890 | 2 | % | |||||||||||||
| Total | $ | 1,621,803 | $ | 1,538,636 | 5 | % | $ | (5,988 | ) | 6 | % |
Waters Corporation and Subsidiaries
Reconciliation of GAAP to Adjusted Non-GAAP Financials
Quarters and Nine Months Ended September 30, 2017 and October 1, 2016
(In thousands, except per share data)
| Selling & Administrative Expenses (a) | Research & Development Expenses (a) | Operating Income | Operating Income Percentage | Income from Operations before Income Taxes | Provision for Income Taxes | Net Income | Diluted Earnings per Share | |||||||||||||||||||||||||
| Quarter Ended September 30, 2017 | ||||||||||||||||||||||||||||||||
| GAAP | $ | 136,876 | $ | 33,782 | $ | 159,034 | 28.1 | % | $ | 153,800 | $ | 17,696 | $ | 136,104 | $ | 1.69 | ||||||||||||||||
| Adjustments: | ||||||||||||||||||||||||||||||||
| Purchased intangibles amortization (b) | (1,682 | ) | 1,682 | 0.3 | % | 1,682 | 436 | 1,246 | 0.02 | |||||||||||||||||||||||
| Restructuring costs, asset impairments, acquisition-related costs & certain other items (c) | (2,530 | ) | 2,530 | 0.4 | % | 2,530 | 931 | 1,599 | 0.02 | |||||||||||||||||||||||
| Stock award modification (d) | (3,855 | ) | 3,855 | 0.7 | % | 3,855 | 1,446 | 2,409 | 0.03 | |||||||||||||||||||||||
| Certain income tax items (e) | (837 | ) | 837 | 0.01 | ||||||||||||||||||||||||||||
| Adjusted Non-GAAP | $ | 128,809 | $ | 33,782 | $ | 167,101 | 29.5 | % | $ | 161,867 | $ | 19,672 | $ | 142,195 | $ | 1.77 | ||||||||||||||||
| Quarter Ended October 1, 2016 | ||||||||||||||||||||||||||||||||
| GAAP | $ | 126,337 | $ | 30,418 | $ | 151,731 | 28.8 | % | $ | 145,450 | $ | 20,594 | $ | 124,856 | $ | 1.53 | ||||||||||||||||
| Adjustments: | ||||||||||||||||||||||||||||||||
| Purchased intangibles amortization (b) | (2,476 | ) | 2,476 | 0.5 | % | 2,476 | 732 | 1,744 | 0.02 | |||||||||||||||||||||||
| Restructuring costs, asset impairments, acquisition-related costs & certain other items (c) | (964 | ) | 964 | 0.2 | % | 964 | 839 | 125 | ||||||||||||||||||||||||
| Certain income tax items (e) | (756 | ) | 756 | 0.01 | ||||||||||||||||||||||||||||
| Adjusted Non-GAAP | $ | 122,897 | $ | 30,418 | $ | 155,171 | 29.5 | % | $ | 148,890 | $ | 21,409 | $ | 127,481 | $ | 1.57 | ||||||||||||||||
| Nine Months Ended September 30, 2017 | ||||||||||||||||||||||||||||||||
| GAAP | $ | 411,030 | $ | 102,471 | $ | 431,688 | 26.6 | % | $ | 415,359 | $ | 41,876 | $ | 373,483 | $ | 4.63 | ||||||||||||||||
| Adjustments: | ||||||||||||||||||||||||||||||||
| Purchased intangibles amortization (b) | (5,104 | ) | 5,104 | 0.3 | % | 5,104 | 1,358 | 3,746 | 0.05 | |||||||||||||||||||||||
| Restructuring costs, asset impairments, acquisition-related costs & certain other items (c) | (13,541 | ) | 13,541 | 0.8 | % | 13,541 | 4,725 | 8,816 | 0.11 | |||||||||||||||||||||||
| Stock award modification (d) | (3,855 | ) | 3,855 | 0.2 | % | 3,855 | 1,446 | 2,409 | 0.03 | |||||||||||||||||||||||
| Litigation provisions (f) | (10,018 | ) | 10,018 | 0.6 | % | 10,018 | 3,757 | 6,261 | 0.08 | |||||||||||||||||||||||
| Acquired in-process research and development (g) | (5,000 | ) | 5,000 | 0.3 | % | 5,000 | 962 | 4,038 | 0.05 | |||||||||||||||||||||||
| Certain income tax items (e) | (3,284 | ) | 3,284 | 0.04 | ||||||||||||||||||||||||||||
| Adjusted Non-GAAP | $ | 378,512 | $ | 97,471 | $ | 469,206 | 28.9 | % | $ | 452,877 | $ | 50,840 | $ | 402,037 | $ | 4.98 | ||||||||||||||||
| Nine Months Ended October 1, 2016 | ||||||||||||||||||||||||||||||||
| GAAP | $ | 390,324 | $ | 92,434 | $ | 416,004 | 27.0 | % | $ | 397,535 | $ | 50,410 | $ | 347,125 | $ | 4.26 | ||||||||||||||||
| Adjustments: | ||||||||||||||||||||||||||||||||
| Purchased intangibles amortization (b) | (7,531 | ) | 7,531 | 0.5 | % | 7,531 | 2,203 | 5,328 | 0.07 | |||||||||||||||||||||||
| Restructuring costs, asset impairments, acquisition-related costs & certain other items (c) | (6,552 | ) | 6,552 | 0.4 | % | 6,552 | 2,500 | 4,052 | 0.05 | |||||||||||||||||||||||
| Stock award modification (d) | (7,085 | ) | 7,085 | 0.5 | % | 7,085 | 2,657 | 4,428 | 0.05 | |||||||||||||||||||||||
| Certain income tax items (e) | 874 | (874 | ) | (0.01 | ) | |||||||||||||||||||||||||||
| Adjusted Non-GAAP | $ | 369,156 | $ | 92,434 | $ | 437,172 | 28.4 | % | $ | 418,703 | $ | 58,644 | $ | 360,059 | $ | 4.41 |
Waters Corporation and Subsidiaries
Preliminary Condensed Unclassified Consolidated Balance Sheets
(In thousands and unaudited)
| September 30, 2017 | December 31, 2016 | |||||||
| Cash, cash equivalents and investments | $ | 3,254,957 | $ | 2,813,032 | ||||
| Accounts receivable | 456,334 | 489,340 | ||||||
| Inventories | 297,854 | 262,682 | ||||||
| Property, plant and equipment, net | 342,832 | 337,118 | ||||||
| Intangible assets, net | 224,056 | 207,055 | ||||||
| Goodwill | 359,376 | 352,080 | ||||||
| Other assets | 227,576 | 200,752 | ||||||
| Total assets | $ | 5,162,985 | $ | 4,662,059 | ||||
| Notes payable and debt | $ | 1,957,790 | $ | 1,827,263 | ||||
| Other liabilities | 576,100 | 532,847 | ||||||
| Total liabilities | 2,533,890 | 2,360,110 | ||||||
| Total equity | 2,629,095 | 2,301,949 | ||||||
| Total liabilities and equity | $ | 5,162,985 | $ | 4,662,059 |
Waters Corporation and Subsidiaries
Preliminary Condensed Consolidated Statements of Cash Flows
Three and Nine Months Ended September 30, 2017 and October 1, 2016
(In thousands and unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, 2017 | October 1, 2016 | September 30, 2017 | October 1, 2016 | |||||||||||||
| Cash flows from operating activities: | ||||||||||||||||
| Net income | $ | 136,104 | $ | 124,856 | $ | 373,483 | $ | 347,125 | ||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||
| Stock-based compensation | 12,274 | 8,367 | 30,068 | 32,604 | ||||||||||||
| Depreciation and amortization | 25,844 | 24,287 | 78,249 | 72,364 | ||||||||||||
| Excess tax benefit related to stock-based compensation plans (a) | 9,397 | 12,914 | ||||||||||||||
| Change in operating assets and liabilities, net | (20,026 | ) | (18,312 | ) | 23,656 | 4,010 | ||||||||||
| Net cash provided by operating activities | 154,196 | 148,595 | 505,456 | 469,017 | ||||||||||||
| Cash flows from investing activities: | ||||||||||||||||
| Additions to property, plant, equipment and software capitalization | (19,899 | ) | (22,600 | ) | (55,257 | ) | (72,296 | ) | ||||||||
| Business acquisitions, net of cash acquired | (5,654 | ) | (5,654 | ) | ||||||||||||
| Investment in unaffiliated company | (7,000 | ) | ||||||||||||||
| Payments for intellectual property licenses | (5,000 | ) | ||||||||||||||
| Net change in investments | (90,237 | ) | (146,749 | ) | (336,731 | ) | (364,724 | ) | ||||||||
| Other cash flow from investing activities, net | 4,000 | 4,000 | ||||||||||||||
| Net cash used in investing activities | (110,136 | ) | (171,003 | ) | (403,988 | ) | (438,674 | ) | ||||||||
| Cash flows from financing activities: | ||||||||||||||||
| Net change in debt | 45,190 | 24,916 | 130,126 | 114,854 | ||||||||||||
| Payments of debt issuance costs | (1,705 | ) | ||||||||||||||
| Proceeds from stock plans | 14,639 | 35,300 | 72,821 | 58,572 | ||||||||||||
| Purchase of treasury shares | (79,908 | ) | (69,532 | ) | (245,742 | ) | (241,924 | ) | ||||||||
| Other cash flow from financing activities, net | 2,871 | (1,994 | ) | 3,301 | (9,525 | ) | ||||||||||
| Net cash used in financing activities | (17,208 | ) | (11,310 | ) | (39,494 | ) | (79,728 | ) | ||||||||
| Effect of exchange rate changes on cash and cash equivalents | 9,700 | 545 | 36,202 | (8,071 | ) | |||||||||||
| Increase (decrease) in cash and cash equivalents | 36,552 | (33,173 | ) | 98,176 | (57,456 | ) | ||||||||||
| Cash and cash equivalents at beginning of period | 567,255 | 463,382 | 505,631 | 487,665 | ||||||||||||
| Cash and cash equivalents at end of period | $ | 603,807 | $ | 430,209 | $ | 603,807 | $ | 430,209 | ||||||||
| Reconciliation of GAAP Cash Flows from Operating Activities to Free Cash Flow (b) | ||||||||||||||||
| Net cash provided by operating activities - GAAP | $ | 154,196 | $ | 148,595 | $ | 505,456 | $ | 469,017 | ||||||||
| Adjustments: | ||||||||||||||||
| Additions to property, plant, equipment and software capitalization | (19,899 | ) | (22,600 | ) | (55,257 | ) | (72,296 | ) | ||||||||
| Majority facility renovations | 1,628 | 7,499 | ||||||||||||||
| Free Cash Flow - Adjusted Non GAAP | $ | 134,297 | $ | 127,623 | $ | 450,199 | $ | 404,220 |