þ ANNUAL REPORT PURSUANT TO SECTION 13 OR |
For the fiscal year ended December 31, |
OR |
o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to |
Ohio | 34-0183970 | |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification Number) | |
5995 Mayfair Road, P.O. Box 3077, North Canton, Ohio (Address of principal executive offices) | 44720-8077 (Zip Code) |
Title of each class | Name of each | |
Common Shares $1.25 Par Value | New York Stock Exchange |
Large accelerated | Accelerated | Non-accelerated filer o | Smaller reporting company o |
Common Shares, Par Value $1.25 per Share | $ | 3,391,411,136 |
Common Shares, Par Value $1.25 per Share | $ | 2,321,224,755 |
Class Common Shares $1.25 Par Value | Outstanding at |
(1) | Diebold, Incorporated Proxy Statement for 2009 Annual Meeting of Shareholders to be held on April 23, 2009, portions of which are incorporated by reference into Part III of thisForm 10-K. |
• | changes in the market acceptance of | |
• | customer and competitor consolidation; | |
• | changes in customer preferences; | |
• | declines in general economic conditions; | |
• | changes in environmental regulations that would limit | |
• | macro-economic factors affecting banks, credit unions and other financial institutions may lead to cost-cutting efforts by |
• | fluctuations in currency exchange rates; | |
• | transportation delays and interruptions; | |
• | political and economic instability and disruptions; |
• | restrictions on the transfer of funds; | |
• | the imposition of duties and tariffs; | |
• | import and export controls; | |
• | changes in governmental policies and regulatory environments; | |
• | labor unrest and current and changing regulatory environments; | |
• | the uncertainty of product acceptance by different cultures; | |
• | the risks of divergent business expectations or cultural incompatibility inherent in establishing joint ventures with foreign partners; | |
• | difficulties in staffing and managing multi-national operations; | |
• | limitations on | |
• | reduced protection for intellectual property rights in some countries; and | |
• | potentially adverse tax consequences. |
• | the failure of prospective customers to conclude that our products are valuable and should be used; | |
• | the reluctance of | |
• | marketing efforts of our competitors. |
• | combining product offerings and entering into new markets in which | |
• | convincing customers and distributors that the transaction will not diminish client service standards or business focus, preventing customers and distributors from deferring purchasing decisions or switching to other suppliers (which could result in | |
• | consolidating and rationalizing corporate information technology infrastructure, which may include multiple legacy systems from various acquisitions and integrating software code; | |
• | minimizing the diversion of management attention from ongoing business concerns; |
• | persuading employees that business cultures are compatible, maintaining employee morale and retaining key employees, integrating employees into the Company, correctly estimating employee benefit costs and implementing restructuring programs; | |
• | coordinating and combining administrative, manufacturing, research and development and other operations, subsidiaries, facilities and relationships with third parties in accordance with local laws and other obligations while maintaining adequate standards, controls and procedures; and | |
• | achieving savings from supply chain and administration integration. |
• | Konkol v. Diebold Inc., et al., No. 5:05CV2873 (N.D. Ohio, filed December 13, 2005). | |
• | Ziolkowski v. Diebold Inc., et al., No. 5:05CV2912 (N.D. Ohio, filed December 16, 2005). | |
• | New Jersey Carpenter’s Pension Fund v. Diebold, Inc., No. 5:06CV40 (N.D. Ohio, filed January 6, 2006). | |
• | Rein v. Diebold, Inc., et al. | |
• | Graham v. Diebold, Inc., et al. | |
• | McDermott v. Diebold, Inc., et al., No. 5:06CV170 (N.D. Ohio, filed January 24, 2006). | |
• | Barnett v. Diebold, Inc., et al.,No. 5:06CV361 (N.D. Ohio, filed February 15, 2006). | |
• | Farrell v. Diebold, Inc., et al. | |
• | Forbes v. Diebold, Inc., et al.,No. 5:06CV324 (N.D. Ohio, filed February 10, 2006). | |
• | Gromek v. Diebold, Inc., et al. |
ITEM 4: SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS |
For | Withheld | |||||||
Louis V. Bockius III | 53,622,656 | 6,445,112 | ||||||
Phillip R. Cox | 46,543,977 | 13,523,791 | ||||||
Richard L. Crandall | 53,912,122 | 6,155,646 | ||||||
Gale S. Fitzgerald | 47,262,269 | 12,805,499 | ||||||
Phillip B. Lassiter | 45,502,168 | 14,565,600 | ||||||
John N. Lauer | 45,441,405 | 14,626,363 | ||||||
Eric J. Roorda | 53,897,386 | 6,170,382 | ||||||
Thomas W. Swidarski | 58,640,517 | 1,427,251 | ||||||
Henry D.G. Wallace | 52,120,361 | 7,947,407 | ||||||
Alan J. Weber | 53,887,143 | 6,180,625 |
For | Against | Abstained | ||||||
57,394,762 | 2,466,490 | 206,516 |
ITEM 5: | MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | |||||||||||||||||||||||||||||||||||||||||||
High | Low | High | Low | High | Low | High | Low | High | Low | High | Low | |||||||||||||||||||||||||||||||||||||
1st Quarter | $ | 48.42 | $ | 42.50 | $ | 43.84 | $ | 36.40 | $ | 57.75 | $ | 51.70 | $ | 39.30 | $ | 23.07 | $ | 48.42 | $ | 42.50 | $ | 43.84 | $ | 36.40 | ||||||||||||||||||||||||
2nd Quarter | 52.70 | 47.25 | 46.35 | 39.15 | 57.80 | 44.85 | 40.44 | 35.44 | 52.70 | 47.25 | 46.35 | 39.15 | ||||||||||||||||||||||||||||||||||||
3rd Quarter | 54.50 | 42.49 | 44.90 | 36.93 | 50.21 | 33.78 | 39.81 | 30.60 | 54.50 | 42.49 | 44.90 | 36.93 | ||||||||||||||||||||||||||||||||||||
4th Quarter | 45.90 | 28.32 | 47.13 | 41.41 | 41.00 | 33.10 | 34.47 | 22.50 | 45.90 | 28.32 | 47.13 | 41.41 | ||||||||||||||||||||||||||||||||||||
Full Year | $ | 54.50 | $ | 28.32 | $ | 47.13 | $ | 36.40 | $ | 57.80 | $ | 33.10 | $ | 40.44 | $ | 22.50 | $ | 54.50 | $ | 28.32 | $ | 47.13 | $ | 36.40 |
Total Number of | Maximum Number of | Total Number of | Maximum Number of | |||||||||||||||||||||||||||||
Total Number | Shares Purchased as | Shares that may yet | Total Number | Shares Purchased as | Shares that May Yet | |||||||||||||||||||||||||||
of Shares | Average Price | Part of Publicly | be Purchased Under | of Shares | Average Price | Part of Publicly | Be Purchased Under | |||||||||||||||||||||||||
Period | Purchased(1) | Paid Per Share | Announced Plans(2) | the Plans(2) | Purchased(1) | Paid Per Share | Announced Plans | the Plans(2) | ||||||||||||||||||||||||
October | — | N/A | 2,926,500 | 3,194 | $ | 33.34 | — | 2,926,500 | ||||||||||||||||||||||||
November | 500 | $ | 35.69 | — | 2,926,500 | — | — | — | 2,926,500 | |||||||||||||||||||||||
December | 564 | $ | 28.92 | — | 2,926,500 | — | — | — | 2,926,500 | |||||||||||||||||||||||
Total | 1,064 | $ | 32.31 | — | 2,926,500 | 3,194 | $ | 33.34 | — | 2,926,500 | ||||||||||||||||||||||
(1) | Includes | |
(2) | The total number of shares repurchased as part of the publicly announced share repurchase plan was 9,073,500 as of December 31, |
* | $100 invested on12/31/ |
Year ended December 31, | ||||||||||||||||||||||||||||||||||||
2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||||||||||||||||||
As | As | As | As | As | As | As | As | |||||||||||||||||||||||||||||
Reported | Restated | Reported | Restated | Reported | Restated | Reported | Restated | |||||||||||||||||||||||||||||
(In millions, except per share data) | ||||||||||||||||||||||||||||||||||||
Results of Operations | ||||||||||||||||||||||||||||||||||||
Net sales | $ | 2,965 | $ | 2,906 | $ | 2,940 | $ | 2,587 | $ | 2,583 | $ | 2,357 | $ | 2,388 | $ | 2,086 | $ | 1,994 | ||||||||||||||||||
Cost of sales | 2,281 | 2,196 | 2,202 | 1,962 | 1,929 | 1,688 | 1,715 | 1,470 | 1,432 | |||||||||||||||||||||||||||
Gross profit | 684 | 710 | 738 | 625 | 654 | 669 | 673 | 616 | 562 | |||||||||||||||||||||||||||
Income from continuing operations, net of tax | 40 | 87 | 105 | 83 | 92 | 182 | 177 | 171 | 133 | |||||||||||||||||||||||||||
Income from discontinued operations, net of tax | — | — | — | 14 | 10 | 2 | 2 | 2 | 2 | |||||||||||||||||||||||||||
Net Income | $ | 40 | $ | 87 | $ | 105 | $ | 97 | $ | 102 | $ | 184 | $ | 179 | $ | 173 | $ | 135 | ||||||||||||||||||
Basic earnings per common share: | ||||||||||||||||||||||||||||||||||||
Income from continuing operations | 0.60 | 1.30 | 1.57 | 1.17 | 1.30 | 2.52 | 2.46 | 2.37 | 1.83 | |||||||||||||||||||||||||||
Income from discontinued operations | — | — | — | 0.20 | 0.15 | 0.03 | 0.03 | 0.02 | 0.03 | |||||||||||||||||||||||||||
Net Income | $ | 0.60 | $ | 1.30 | $ | 1.57 | $ | 1.37 | $ | 1.45 | $ | 2.55 | $ | 2.49 | $ | 2.39 | $ | 1.86 | ||||||||||||||||||
Diluted earnings per common share: | ||||||||||||||||||||||||||||||||||||
Income from continuing operations | 0.59 | 1.29 | 1.55 | 1.17 | 1.29 | 2.50 | 2.43 | 2.35 | 1.82 | |||||||||||||||||||||||||||
Income from discontinued operations | — | — | — | 0.20 | 0.14 | 0.03 | 0.03 | 0.02 | 0.02 | |||||||||||||||||||||||||||
Net Income | $ | 0.59 | $ | 1.29 | $ | 1.55 | $ | 1.37 | $ | 1.43 | $ | 2.53 | $ | 2.46 | $ | 2.37 | $ | 1.84 | ||||||||||||||||||
Number of Weighted-Average Shares Outstanding | ||||||||||||||||||||||||||||||||||||
Basic weighted-average shares outstanding | 65,841 | 66,669 | 66,669 | 70,577 | 70,577 | 72,000 | 72,000 | 72,417 | 72,417 | |||||||||||||||||||||||||||
Diluted weighted-average shares outstanding | 66,673 | 66,885 | 67,253 | 70,966 | 71,340 | 72,534 | 72,823 | 72,924 | 73,087 | |||||||||||||||||||||||||||
Common dividends paid | $ | 62,442 | $ | 57,408 | $ | 57,964 | $ | 57,770 | $ | 58,196 | $ | 53,240 | $ | 53,506 | $ | 49,242 | $ | 49,330 | ||||||||||||||||||
Common dividends paid per share | 0.94 | 0.86 | 0.86 | 0.82 | 0.82 | 0.74 | 0.74 | 0.68 | 0.68 |
Year ended December 31, | ||||||||||||||||||||||||||||||||||||
2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||||||||||||||||||
As | As | As | As | As | As | As | As | |||||||||||||||||||||||||||||
Reported | Restated | Reported | Restated | Reported | Restated | Reported | Restated | |||||||||||||||||||||||||||||
(In millions, except per share data) | ||||||||||||||||||||||||||||||||||||
Consolidated Balance Sheet Data | ||||||||||||||||||||||||||||||||||||
(as of period end) | ||||||||||||||||||||||||||||||||||||
Current assets | $ | 1,631 | $ | 1,596 | $ | 1,694 | $ | 1,481 | $ | 1,596 | $ | 1,290 | $ | 1,382 | $ | 1,164 | $ | 1,278 | ||||||||||||||||||
Current liabilities | 751 | 599 | 782 | 580 | 796 | 740 | 944 | 619 | 844 | |||||||||||||||||||||||||||
Net working capital | 880 | 997 | 912 | 901 | 800 | 550 | 438 | 545 | 434 | |||||||||||||||||||||||||||
Property, plant and equipment, net | 220 | 217 | 208 | 235 | 226 | 225 | 219 | 209 | 206 | |||||||||||||||||||||||||||
Total long-term liabilities | 766 | 824 | 816 | 617 | 568 | 142 | 140 | 142 | 140 | |||||||||||||||||||||||||||
Total assets | 2,631 | 2,514 | 2,597 | 2,350 | 2,409 | 2,131 | 2,210 | 1,898 | 2,000 | |||||||||||||||||||||||||||
Shareholders’ equity | 1,115 | 1,091 | 998 | 1,153 | 1,045 | 1,249 | 1,126 | 1,137 | 1,016 |
Year ended December 31, | ||||||||||||||||
2006 | 2005 | 2004 | 2003 | |||||||||||||
(In thousands) | ||||||||||||||||
Retained earnings as reported | $ | 1,169,607 | $ | 1,140,468 | $ | 1,101,492 | $ | 970,935 | ||||||||
Cumulative restatement adjustments | (109,882 | ) | (127,331 | ) | (132,295 | ) | (127,465 | )(1) | ||||||||
Retained earnings as restated | $ | 1,059,725 | $ | 1,013,137 | $ | 969,197 | $ | 843,470 | ||||||||
Year ended December 31, | ||||||||||||||||||||
2008 | 2007 | 2006 | 2005 | 2004(1) | ||||||||||||||||
(In millions, except per share data) | ||||||||||||||||||||
Results of operations | ||||||||||||||||||||
Net sales | $ | 3,170 | $ | 2,947 | $ | 2,921 | $ | 2,569 | $ | 2,388 | ||||||||||
Cost of sales | 2,375 | 2,265 | 2,186 | 1,919 | 1,715 | |||||||||||||||
Gross profit | 795 | 682 | 735 | 650 | 673 | |||||||||||||||
Income from continuing operations, net of tax | 102 | 45 | 109 | 95 | 177 | |||||||||||||||
(Loss) income from discontinued operations, net of tax | (13 | ) | (5 | ) | (4 | ) | 7 | 2 | ||||||||||||
Net Income | $ | 89 | $ | 40 | $ | 105 | $ | 102 | $ | 179 | ||||||||||
Basic earnings per common share: | ||||||||||||||||||||
Income from continuing operations | $ | 1.54 | $ | 0.68 | $ | 1.63 | $ | 1.34 | $ | 2.46 | ||||||||||
(Loss) income from discontinued operations | (0.20 | ) | (0.08 | ) | (0.06 | ) | 0.11 | 0.03 | ||||||||||||
Net Income | $ | 1.34 | $ | 0.60 | $ | 1.57 | $ | 1.45 | $ | 2.49 | ||||||||||
Diluted earnings per common share: | ||||||||||||||||||||
Income from continuing operations | $ | 1.52 | $ | 0.67 | $ | 1.62 | $ | 1.33 | $ | 2.43 | ||||||||||
(Loss) income from discontinued operations | (0.19 | ) | (0.08 | ) | (0.07 | ) | 0.10 | 0.03 | ||||||||||||
�� | ||||||||||||||||||||
Net Income | $ | 1.33 | $ | 0.59 | $ | 1.55 | $ | 1.43 | $ | 2.46 | ||||||||||
Number of weighted-average shares outstanding | ||||||||||||||||||||
Basic shares | 66 | 66 | 67 | 71 | 72 | |||||||||||||||
Diluted shares | 66 | 67 | 67 | 71 | 73 | |||||||||||||||
Dividends | ||||||||||||||||||||
Common dividends paid | $ | 67 | $ | 62 | $ | 58 | $ | 58 | $ | 54 | ||||||||||
Common dividends paid per share | $ | 1.00 | $ | 0.94 | $ | 0.86 | $ | 0.82 | $ | 0.74 | ||||||||||
Consolidated balance sheet data | ||||||||||||||||||||
(as of period end) | ||||||||||||||||||||
Current assets | $ | 1,614 | $ | 1,594 | $ | 1,658 | $ | 1,528 | $ | 1,291 | ||||||||||
Current liabilities | 735 | 701 | 746 | 728 | 853 | |||||||||||||||
Net working capital | 879 | 893 | 912 | 800 | 438 | |||||||||||||||
Property, plant and equipment, net | 204 | 220 | 208 | 226 | 219 | |||||||||||||||
Total long-term liabilities | 856 | 779 | 816 | 568 | 140 | |||||||||||||||
Total assets | 2,538 | 2,595 | 2,560 | 2,341 | 2,119 | |||||||||||||||
Shareholders’ equity | 947 | 1,115 | 998 | 1,045 | 1,126 |
(1) |
Year ended December 31, | ||||||||||||||||
2006 | 2005 | 2004 | 2003 | |||||||||||||
(In thousands) | ||||||||||||||||
Retained earnings as restated: | ||||||||||||||||
Beginning retained earnings as reported | $ | 1,140,468 | $ | 1,101,492 | $ | 970,935 | $ | 847,091 | ||||||||
Cumulative adjustments to beginning retained earnings | (127,331 | ) | (132,295 | ) | (127,465 | ) | (88,972 | ) | ||||||||
Beginning retained earnings as restated | 1,013,137 | 969,197 | 843,470 | 758,119 | ||||||||||||
Net income as reported | 86,547 | 96,746 | 183,797 | 173,086 | ||||||||||||
Net income restatement adjustments | 18,005 | 5,389 | (4,563 | ) | (38,405 | ) | ||||||||||
Net income as restated | 104,552 | 102,135 | 179,234 | 134,681 | ||||||||||||
Dividends declared and paid as reported | (57,408 | ) | (57,770 | ) | (53,240 | ) | (49,242 | ) | ||||||||
Dividends declared and paid adjustments | (556 | ) | (426 | ) | (266 | ) | (88 | ) | ||||||||
Dividends declared and paid as restated | (57,964 | ) | (58,196 | ) | (53,506 | ) | (49,330 | ) | ||||||||
Retained earnings as restated | $ | 1,059,725 | $ | 1,013,137 | $ | 969,198 | $ | 843,470 | ||||||||
Years Beginning January 1, | ||||||||||||||||
2006 | 2005 | 2004 | 2003 | |||||||||||||
(In thousands) | ||||||||||||||||
Beginning retained earnings as reported | $ | 1,140,468 | $ | 1,101,492 | $ | 970,935 | $ | 847,091 | ||||||||
Revenue Recognition — Bill & Hold | (67,151 | ) | (81,957 | ) | (95,550 | ) | (66,026 | ) | ||||||||
Revenue Recognition — Other | (11,201 | ) | (7,285 | ) | (5,886 | ) | (1,525 | ) | ||||||||
Account Reconciliations | (62,806 | ) | (77,122 | ) | (68,503 | ) | (34,462 | ) | ||||||||
Inventory | (9,953 | ) | (12,051 | ) | (9,694 | ) | (10,763 | ) | ||||||||
Capitalization | (18,232 | ) | (12,911 | ) | (8,932 | ) | (7,674 | ) | ||||||||
Other | (1,384 | ) | 2,372 | 1,615 | 384 | |||||||||||
Tax | 44,176 | 57,012 | 59,573 | 31,094 | ||||||||||||
Dividends declared and paid adjustments | (780 | ) | (353 | ) | (88 | ) | — | |||||||||
Cumulative adjustments to beginning retained earnings | (127,331 | ) | (132,295 | ) | (127,465 | ) | (88,972 | ) | ||||||||
Beginning retained earnings as restated | $ | 1,013,137 | $ | 969,197 | $ | 843,470 | $ | 758,119 | ||||||||
Revenue Recognition | Account | Total | ||||||||||||||||||||||||||||
Bill & Hold | Other | Reconciliations | Inventory | Capitalization | Other | Adjustments | ||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||
2006 | ||||||||||||||||||||||||||||||
Bill & Hold Revenue | $ | 1,582 | — | — | — | — | $ | 1,582 | ||||||||||||||||||||||
Service Contract Revenue | — | — | (2,350 | ) | — | — | — | (2,350 | ) | |||||||||||||||||||||
ERP Capitalization | — | — | — | — | 653 | — | 653 | |||||||||||||||||||||||
AP Float and Related Reserve | — | — | 1,121 | — | — | — | 1,121 | |||||||||||||||||||||||
Installation Allowance | — | — | 666 | — | — | — | 666 | |||||||||||||||||||||||
Finished Goods Inventory | — | — | — | 335 | — | — | 335 | |||||||||||||||||||||||
Refurbished Inventory | — | — | — | 2,317 | — | — | 2,317 | |||||||||||||||||||||||
AP Wire Clearing Account | — | — | 6,168 | — | — | — | 6,168 | |||||||||||||||||||||||
Subtotal | 1,582 | — | 5,605 | 2,652 | 653 | — | 10,492 | |||||||||||||||||||||||
All Other Adjustments, net | — | 3,791 | 12,216 | 3,409 | (316 | ) | 3,427 | 22,527 | ||||||||||||||||||||||
Total | $ | 1,582 | $ | 3,791 | $ | 17,821 | $ | 6,061 | $ | 337 | $ | 3,427 | $ | 33,019 | ||||||||||||||||
2005 | ||||||||||||||||||||||||||||||
Bill & Hold Revenue | $ | 14,807 | — | — | — | — | $ | 14,807 | ||||||||||||||||||||||
Service Contract Revenue | — | — | (1,165 | ) | — | — | — | (1,165 | ) | |||||||||||||||||||||
ERP Capitalization | — | — | — | — | (6,787 | ) | — | (6,787 | ) | |||||||||||||||||||||
AP Float and Related Reserve | — | — | (362 | ) | — | — | — | (362 | ) | |||||||||||||||||||||
Installation Allowance | — | — | 8,050 | — | — | — | 8,050 | |||||||||||||||||||||||
Finished Goods Inventory | — | — | — | 9,074 | — | — | 9,074 | |||||||||||||||||||||||
Refurbished Inventory | — | — | — | (1,517 | ) | — | — | (1,517 | ) | |||||||||||||||||||||
AP Wire Clearing Account | — | — | (842 | ) | — | — | — | (842 | ) | |||||||||||||||||||||
Subtotal | 14,807 | — | 5,681 | 7,557 | (6,787 | ) | — | 21,258 | ||||||||||||||||||||||
All Other Adjustments, net | — | (2,026 | ) | 8,634 | (5,459 | ) | 1,465 | (1,206 | ) | 1,408 | ||||||||||||||||||||
Total | $ | 14,807 | $ | (2,026 | ) | $ | 14,315 | $ | 2,098 | $ | (5,322 | ) | $ | (1,206 | ) | $ | 22,666 | |||||||||||||
2004 | ||||||||||||||||||||||||||||||
Bill & Hold Revenue | $ | 13,593 | — | — | — | — | — | $ | 13,593 | |||||||||||||||||||||
Service Contract Revenue | — | — | (2,296 | ) | — | — | — | (2,296 | ) | |||||||||||||||||||||
ERP Capitalization | — | — | — | — | (2,953 | ) | — | (2,953 | ) | |||||||||||||||||||||
AP Float and Related Reserve | — | — | (346 | ) | — | — | — | (346 | ) | |||||||||||||||||||||
Installation Allowance | — | — | (2,091 | ) | — | — | — | (2,091 | ) | |||||||||||||||||||||
Finished Goods Inventory | — | — | — | 1,439 | — | — | 1,439 | |||||||||||||||||||||||
Refurbished Inventory | — | — | — | (1,617 | ) | — | — | (1,617 | ) | |||||||||||||||||||||
AP Wire Clearing Account | — | — | 1,674 | — | — | — | 1,674 | |||||||||||||||||||||||
Subtotal | 13,593 | — | (3,059 | ) | (178 | ) | (2,953 | ) | — | 7,403 | ||||||||||||||||||||
All Other Adjustments, net | — | (1,398 | ) | (6,430 | ) | (2,180 | ) | (1,026 | ) | 759 | (10,275 | ) | ||||||||||||||||||
Total | $ | 13,593 | $ | (1,398 | ) | $ | (9,489 | ) | $ | (2,358 | ) | $ | (3,979 | ) | $ | 759 | $ | (2,872 | ) | |||||||||||
2003 | ||||||||||||||||||||||||||||||
Bill & Hold Revenue | $ | (29,526 | ) | — | — | — | — | — | $ | (29,526 | ) | |||||||||||||||||||
Service Contract Revenue | — | — | (16,615 | ) | — | — | — | (16,615 | ) | |||||||||||||||||||||
ERP Capitalization | — | — | — | — | (472 | ) | — | (472 | ) | |||||||||||||||||||||
AP Float and Related Reserve | — | — | (9,778 | ) | — | — | — | (9,778 | ) | |||||||||||||||||||||
Installation Allowance | — | — | (2,183 | ) | — | — | — | (2,183 | ) | |||||||||||||||||||||
Finished Goods Inventory | — | — | — | (4,301 | ) | — | — | (4,301 | ) | |||||||||||||||||||||
Refurbished Inventory | — | — | — | 1,317 | — | — | 1,317 | |||||||||||||||||||||||
AP Wire Clearing Account | — | — | (4,223 | ) | — | — | — | (4,223 | ) | |||||||||||||||||||||
Subtotal | (29,526 | ) | — | (32,799 | ) | (2,984 | ) | (472 | ) | — | (65,781 | ) | ||||||||||||||||||
All Other Adjustments, net | — | (3,557 | ) | (1,997 | ) | 4,054 | (785 | ) | 1,230 | (1,055 | ) | |||||||||||||||||||
Total | $ | (29,526 | ) | $ | (3,557 | ) | $ | (34,796 | ) | $ | 1,070 | $ | (1,257 | ) | $ | 1,230 | $ | (66,836 | ) | |||||||||||
Year ended December 31, 2006 | ||||||||||||||||||||||||||||||||||||||||
Adjustments | ||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | ||||||||||||||||||||||||||||||||||||||||
As | Account | Total | Provision for | As | ||||||||||||||||||||||||||||||||||||
Reported | Bill & Hold | Other | Reconciliations | Inventory | Capitalization | Other | Adjustments | Income Tax | Restated | |||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||
Net sales | ||||||||||||||||||||||||||||||||||||||||
Products | $ | 1,469,250 | $ | 24,057 | $ | 9,090 | $ | (1,399 | ) | $ | 1,636 | $ | — | $ | (1,636 | ) | $ | 31,748 | $ | 1,500,998 | ||||||||||||||||||||
Services | 1,436,982 | 3,325 | (1,631 | ) | (64 | ) | — | — | — | 1,630 | 1,438,612 | |||||||||||||||||||||||||||||
2,906,232 | 27,382 | 7,459 | (1,463 | ) | 1,636 | — | (1,636 | ) | 33,378 | 2,939,610 | ||||||||||||||||||||||||||||||
Cost of sales | ||||||||||||||||||||||||||||||||||||||||
Products | 1,046,617 | 22,787 | 4,663 | (10,371 | ) | (3,866 | ) | — | (2,454 | ) | 10,759 | 1,057,376 | ||||||||||||||||||||||||||||
Services | 1,149,097 | 2,409 | (573 | ) | (5,725 | ) | (559 | ) | (4 | ) | — | (4,452 | ) | 1,144,645 | ||||||||||||||||||||||||||
2,195,714 | 25,196 | 4,090 | (16,096 | ) | (4,425 | ) | (4 | ) | (2,454 | ) | 6,307 | 2,202,021 | ||||||||||||||||||||||||||||
Gross profit | 710,518 | 2,186 | 3,369 | 14,633 | 6,061 | 4 | 818 | 27,071 | 737,589 | |||||||||||||||||||||||||||||||
Selling and administrative expense | 463,862 | 155 | (577 | ) | (1,961 | ) | — | 2,792 | (203 | ) | 206 | 464,068 | ||||||||||||||||||||||||||||
Research, development and engineering expense | 70,995 | 594 | — | 36 | — | — | — | 630 | 71,625 | |||||||||||||||||||||||||||||||
Impairment of asset | 22,462 | — | — | — | — | (3,125 | ) | — | (3,125 | ) | 19,337 | |||||||||||||||||||||||||||||
(Gain) loss on sale of assets, net | 328 | — | — | — | — | — | — | — | 328 | |||||||||||||||||||||||||||||||
557,647 | 749 | (577 | ) | (1,925 | ) | — | (333 | ) | (203 | ) | (2,289 | ) | 555,358 | |||||||||||||||||||||||||||
Operating profit | 152,871 | 1,437 | 3,946 | 16,558 | 6,061 | 337 | 1,021 | 29,360 | 182,231 | |||||||||||||||||||||||||||||||
Other income (expense) | ||||||||||||||||||||||||||||||||||||||||
Investment income | 19,224 | — | (155 | ) | — | — | — | — | (155 | ) | 19,069 | |||||||||||||||||||||||||||||
Interest expense | (36,024 | ) | — | — | — | — | — | 730 | 730 | (35,294 | ) | |||||||||||||||||||||||||||||
Miscellaneous, net | (5,025 | ) | — | — | 1,263 | — | — | 1,676 | 2,939 | (2,086 | ) | |||||||||||||||||||||||||||||
Minority interest | (6,597 | ) | 145 | — | — | — | — | — | 145 | (6,452 | ) | |||||||||||||||||||||||||||||
Income from continuing operations before taxes | 124,449 | 1,582 | 3,791 | 17,821 | 6,061 | 337 | 3,427 | 33,019 | 157,468 | |||||||||||||||||||||||||||||||
Income tax adjustments | — | 1,053 | — | — | — | — | 1,053 | 1,053 | ||||||||||||||||||||||||||||||||
Taxes on income | 37,902 | 13,961 | 51,863 | |||||||||||||||||||||||||||||||||||||
Income from continuing operations | 86,547 | 1,582 | 2,738 | 17,821 | 6,061 | 337 | 3,427 | 31,966 | (13,961 | ) | 104,552 | |||||||||||||||||||||||||||||
Income from discontinued operations, net of tax | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net income | $ | 86,547 | $ | 1,582 | $ | 2,738 | $ | 17,821 | $ | 6,061 | $ | 337 | $ | 3,427 | $ | 31,966 | $ | (13,961 | ) | $ | 104,552 | |||||||||||||||||||
Basic weighted-average shares outstanding | 66,669 | 66,669 | ||||||||||||||||||||||||||||||||||||||
Diluted weighted-average shares outstanding | 66,885 | 67,253 | ||||||||||||||||||||||||||||||||||||||
Basic earnings per share | ||||||||||||||||||||||||||||||||||||||||
Income from continuing operations | $ | 1.30 | $ | 1.57 | ||||||||||||||||||||||||||||||||||||
Income from discontinued operations | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||
Net income | $ | 1.30 | $ | 1.57 | ||||||||||||||||||||||||||||||||||||
Diluted earnings per share | ||||||||||||||||||||||||||||||||||||||||
Income from continuing operations | $ | 1.29 | $ | 1.55 | ||||||||||||||||||||||||||||||||||||
Income from discontinued operations | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||
Net income | $ | 1.29 | $ | 1.55 |
Year ended December 31, 2005 | ||||||||||||||||||||||||||||||||||||||||
Adjustments | ||||||||||||||||||||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||||||||||||||||||
Recognition | ||||||||||||||||||||||||||||||||||||||||
As | Account | Total | Provision for | As | ||||||||||||||||||||||||||||||||||||
Reported | Bill & Hold | Other | Reconciliations | Inventory | Capitalization | Other | Adjustments | Income Tax | Restated | |||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||
Net sales | ||||||||||||||||||||||||||||||||||||||||
Products | $ | 1,293,419 | $ | (8,347 | ) | $ | (10,664 | ) | $ | 4,147 | $ | (1,544 | ) | $ | — | $ | 1,544 | $ | (14,864 | ) | $ | 1,278,555 | ||||||||||||||||||
Services | 1,293,630 | 11,742 | (56 | ) | (881 | ) | — | — | — | 10,805 | 1,304,435 | |||||||||||||||||||||||||||||
2,587,049 | 3,395 | (10,720 | ) | 3,266 | (1,544 | ) | — | 1,544 | (4,059 | ) | 2,582,990 | |||||||||||||||||||||||||||||
Cost of sales | ||||||||||||||||||||||||||||||||||||||||
Products | 952,321 | (17,657 | ) | (8,991 | ) | (2,975 | ) | (3,976 | ) | — | 1,750 | (31,849 | ) | 920,472 | ||||||||||||||||||||||||||
Services | 1,009,246 | 6,903 | (436 | ) | (6,634 | ) | 334 | (403 | ) | — | (236 | ) | 1,009,010 | |||||||||||||||||||||||||||
1,961,567 | (10,754 | ) | (9,427 | ) | (9,609 | ) | (3,642 | ) | (403 | ) | 1,750 | (32,085 | ) | 1,929,482 | ||||||||||||||||||||||||||
Gross profit | 625,482 | 14,149 | (1,293 | ) | 12,875 | 2,098 | 403 | (206 | ) | 28,026 | 653,508 | |||||||||||||||||||||||||||||
Selling and administrative expense | 403,804 | — | 597 | (1,157 | ) | — | 5,725 | 1,905 | 7,070 | 410,874 | ||||||||||||||||||||||||||||||
Research, development and engineering expense | 60,409 | (694 | ) | — | 222 | — | — | — | (472 | ) | 59,937 | |||||||||||||||||||||||||||||
Impairment of asset | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
(Gain) loss on sale of assets, net | (50 | ) | — | — | — | — | — | — | — | (50 | ) | |||||||||||||||||||||||||||||
464,163 | (694 | ) | 597 | (935 | ) | — | 5,725 | 1,905 | 6,598 | 470,761 | ||||||||||||||||||||||||||||||
Operating profit | 161,319 | 14,843 | (1,890 | ) | 13,810 | 2,098 | (5,322 | ) | (2,111 | ) | 21,428 | 182,747 | ||||||||||||||||||||||||||||
Other income (expense) | ||||||||||||||||||||||||||||||||||||||||
Investment income | 12,165 | — | (136 | ) | (25 | ) | — | — | — | (161 | ) | 12,004 | ||||||||||||||||||||||||||||
Interest expense | (16,511 | ) | — | — | — | — | — | 311 | 311 | (16,200 | ) | |||||||||||||||||||||||||||||
Miscellaneous, net | (11,893 | ) | — | — | 530 | — | — | 594 | 1,124 | (10,769 | ) | |||||||||||||||||||||||||||||
Minority interest | (6,829 | ) | (36 | ) | — | — | — | — | — | (36 | ) | (6,865 | ) | |||||||||||||||||||||||||||
Income from continuing operations before taxes | 138,251 | 14,807 | (2,026 | ) | 14,315 | 2,098 | (5,322 | ) | (1,206 | ) | 22,666 | 160,917 | ||||||||||||||||||||||||||||
Income tax adjustments | — | 1,892 | — | — | — | — | 1,892 | 1,892 | ||||||||||||||||||||||||||||||||
Taxes on income | 55,347 | 11,716 | 67,063 | |||||||||||||||||||||||||||||||||||||
Income from continuing operations | 82,904 | 14,807 | (3,918 | ) | 14,315 | 2,098 | (5,322 | ) | (1,206 | ) | 20,774 | (11,716 | ) | 91,962 | ||||||||||||||||||||||||||
Income from discontinued operations, net of tax | 13,842 | — | — | — | — | — | (2,549 | ) | (2,549 | ) | (1,120 | ) | 10,173 | |||||||||||||||||||||||||||
Net Income | $ | 96,746 | $ | 14,807 | $ | (3,918 | ) | $ | 14,315 | $ | 2,098 | $ | (5,322 | ) | $ | (3,755 | ) | $ | 18,225 | $ | (12,836 | ) | $ | 102,135 | ||||||||||||||||
Basic weighted-average shares outstanding | 70,577 | 70,577 | ||||||||||||||||||||||||||||||||||||||
Diluted weighted-average shares outstanding | 70,966 | 71,340 | ||||||||||||||||||||||||||||||||||||||
Basic earnings per share | ||||||||||||||||||||||||||||||||||||||||
Income from continuing operations | $ | 1.17 | $ | 1.30 | ||||||||||||||||||||||||||||||||||||
Income from discontinued operations | $ | 0.20 | $ | 0.15 | ||||||||||||||||||||||||||||||||||||
Net income | $ | 1.37 | $ | 1.45 | ||||||||||||||||||||||||||||||||||||
Diluted earnings per share | ||||||||||||||||||||||||||||||||||||||||
Income from continuing operations | $ | 1.17 | $ | 1.29 | ||||||||||||||||||||||||||||||||||||
Income from discontinued operations | $ | 0.20 | $ | 0.14 | ||||||||||||||||||||||||||||||||||||
Net income | $ | 1.37 | $ | 1.43 |
Year ended December 31, 2004 | ||||||||||||||||||||||||||||||||||||||||
Adjustments | ||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | ||||||||||||||||||||||||||||||||||||||||
As | Account | Total | Provision for | As | ||||||||||||||||||||||||||||||||||||
Reported | Bill & Hold | Other | Reconciliations | Inventory | Capitalization | Other | Adjustments | Income Tax | Restated | |||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||
Net sales | ||||||||||||||||||||||||||||||||||||||||
Products | $ | 1,158,340 | $ | 29,144 | $ | (9,000 | ) | $ | (2,732 | ) | $ | (42 | ) | $ | — | $ | 42 | $ | 17,412 | $ | 1,175,752 | |||||||||||||||||||
Services | 1,198,768 | 16,102 | (307 | ) | (2,019 | ) | — | — | — | 13,776 | 1,212,544 | |||||||||||||||||||||||||||||
2,357,108 | 45,246 | (9,307 | ) | (4,751 | ) | (42 | ) | — | 42 | 31,188 | 2,388,296 | |||||||||||||||||||||||||||||
Cost of sales | ||||||||||||||||||||||||||||||||||||||||
Products | 789,287 | 21,954 | (7,616 | ) | (2,071 | ) | 703 | — | 11 | 12,981 | 802,268 | |||||||||||||||||||||||||||||
Services | 898,925 | 10,130 | (293 | ) | 2,089 | 1,613 | 383 | — | 13,922 | 912,847 | ||||||||||||||||||||||||||||||
1,688,212 | 32,084 | (7,909 | ) | 18 | 2,316 | 383 | 11 | 26,903 | 1,715,115 | |||||||||||||||||||||||||||||||
Gross profit | 668,896 | 13,162 | (1,398 | ) | (4,769 | ) | (2,358 | ) | (383 | ) | 31 | 4,285 | 673,181 | |||||||||||||||||||||||||||
Selling and administrative expense | 336,657 | — | — | 3,382 | — | 3,590 | (188 | ) | 6,784 | 343,441 | ||||||||||||||||||||||||||||||
Research, development and engineering expense | 58,759 | (269 | ) | — | (73 | ) | — | (40 | ) | — | (382 | ) | 58,377 | |||||||||||||||||||||||||||
Impairment of asset | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
(Gain) loss on sale of assets, net | 141 | — | — | — | — | — | — | — | 141 | |||||||||||||||||||||||||||||||
395,557 | (269 | ) | — | 3,309 | — | 3,550 | (188 | ) | 6,402 | 401,959 | ||||||||||||||||||||||||||||||
Operating profit | 273,339 | 13,431 | (1,398 | ) | (8,078 | ) | (2,358 | ) | (3,933 | ) | 219 | (2,117 | ) | 271,222 | ||||||||||||||||||||||||||
Other income (expense) | ||||||||||||||||||||||||||||||||||||||||
Investment income | 12,299 | — | — | — | — | — | — | — | 12,299 | |||||||||||||||||||||||||||||||
Interest expense | (10,657 | ) | — | — | — | — | — | 186 | 186 | (10,471 | ) | |||||||||||||||||||||||||||||
Miscellaneous, net | (1,814 | ) | — | — | (1,411 | ) | — | (46 | ) | 354 | (1,103 | ) | (2,917 | ) | ||||||||||||||||||||||||||
Minority interest | (7,718 | ) | 162 | — | — | — | — | — | 162 | (7,556 | ) | |||||||||||||||||||||||||||||
Income from continuing operations before taxes | 265,449 | 13,593 | (1,398 | ) | (9,489 | ) | (2,358 | ) | (3,979 | ) | 759 | (2,872 | ) | 262,577 | ||||||||||||||||||||||||||
Income tax adjustments | — | — | (871 | ) | — | — | — | (871 | ) | (871 | ) | |||||||||||||||||||||||||||||
Taxes on income | 83,640 | 2,561 | 86,201 | |||||||||||||||||||||||||||||||||||||
Income from continuing operations | 181,809 | 13,593 | (1,398 | ) | (8,618 | ) | (2,358 | ) | (3,979 | ) | 759 | (2,001 | ) | (2,561 | ) | 177,247 | ||||||||||||||||||||||||
Income from discontinued operations, net of tax | 1,988 | — | — | — | — | — | — | — | 1,988 | |||||||||||||||||||||||||||||||
Net income | $ | 183,797 | $ | 13,593 | $ | (1,398 | ) | $ | (8,618 | ) | $ | (2,358 | ) | $ | (3,979 | ) | $ | 759 | $ | (2,001 | ) | $ | (2,561 | ) | $ | 179,235 | ||||||||||||||
Basic weighted-average shares outstanding | 72,000 | 72,000 | ||||||||||||||||||||||||||||||||||||||
Diluted weighted-average shares outstanding | 72,534 | 72,823 | ||||||||||||||||||||||||||||||||||||||
Basic earnings per share | ||||||||||||||||||||||||||||||||||||||||
Income from continuing operations | $ | 2.52 | $ | 2.46 | ||||||||||||||||||||||||||||||||||||
Income from discontinued operations | $ | 0.03 | $ | 0.03 | ||||||||||||||||||||||||||||||||||||
Net income | $ | 2.55 | $ | 2.49 | ||||||||||||||||||||||||||||||||||||
Diluted earnings per share | ||||||||||||||||||||||||||||||||||||||||
Income from continuing operations | $ | 2.50 | $ | 2.43 | ||||||||||||||||||||||||||||||||||||
Income from discontinued operations | $ | 0.03 | $ | 0.03 | ||||||||||||||||||||||||||||||||||||
Net income | $ | 2.53 | $ | 2.46 |
Year ended December 31, 2003 | ||||||||||||||||||||||||||||||||||||||||
Adjustments | ||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | ||||||||||||||||||||||||||||||||||||||||
As | Account | Total | Provision for | As | ||||||||||||||||||||||||||||||||||||
Reported | Bill & Hold | Other | Reconciliations | Inventory | Capitalization | Other | Adjustments | Income Tax | Restated | |||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||
Net sales | ||||||||||||||||||||||||||||||||||||||||
Products | $ | 1,008,000 | $ | (69,243 | ) | $ | (5,136 | ) | $ | 2,326 | $ | — | $ | — | $ | — | $ | (72,053 | ) | $ | 935,947 | |||||||||||||||||||
Services | 1,078,431 | (19,366 | ) | — | (977 | ) | — | — | — | (20,343 | ) | 1,058,088 | ||||||||||||||||||||||||||||
2,086,431 | (88,609 | ) | (5,136 | ) | 1,349 | — | — | — | (92,396 | ) | 1,994,035 | |||||||||||||||||||||||||||||
Cost of sales | ||||||||||||||||||||||||||||||||||||||||
Products | 672,307 | (46,755 | ) | (1,662 | ) | 20,438 | 80 | 500 | (15 | ) | (27,414 | ) | $ | 644,893 | ||||||||||||||||||||||||||
Services | 797,321 | (12,278 | ) | 83 | 3,180 | (1,150 | ) | 27 | — | (10,138 | ) | $ | 787,183 | |||||||||||||||||||||||||||
1,469,628 | (59,033 | ) | (1,579 | ) | 23,618 | (1,070 | ) | 527 | (15 | ) | (37,552 | ) | 1,432,076 | |||||||||||||||||||||||||||
Gross profit | 616,803 | (29,576 | ) | (3,557 | ) | (22,269 | ) | 1,070 | (527 | ) | 15 | (54,844 | ) | 561,959 | ||||||||||||||||||||||||||
Selling and administrative expense | 306,333 | — | — | 10,369 | — | 1,234 | (470 | ) | 11,133 | 317,466 | ||||||||||||||||||||||||||||||
Research, development and engineering expense | 58,678 | (50 | ) | — | (87 | ) | — | 100 | — | (37 | ) | 58,641 | ||||||||||||||||||||||||||||
Impairment of asset | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
(Gain) loss on sale of assets, net | 178 | — | — | — | — | — | — | — | 178 | |||||||||||||||||||||||||||||||
365,189 | (50 | ) | — | 10,282 | — | 1,334 | (470 | ) | 11,096 | 376,285 | ||||||||||||||||||||||||||||||
Operating profit | 251,614 | (29,526 | ) | (3,557 | ) | (32,551 | ) | 1,070 | (1,861 | ) | 485 | (65,940 | ) | 185,674 | ||||||||||||||||||||||||||
Other income (expense) | ||||||||||||||||||||||||||||||||||||||||
Investment income | 12,996 | $ | — | $ | — | $ | (868 | ) | $ | — | $ | — | $ | — | (868 | ) | 12,128 | |||||||||||||||||||||||
Interest expense | (9,351 | ) | — | — | — | — | — | 54 | 54 | (9,297 | ) | |||||||||||||||||||||||||||||
Miscellaneous, net | 3,746 | — | — | (1,377 | ) | — | 604 | 691 | (82 | ) | 3,664 | |||||||||||||||||||||||||||||
Minority interest | (7,547 | ) | — | — | — | — | — | — | — | (7,547 | ) | |||||||||||||||||||||||||||||
Income from continuing operations before taxes | 251,458 | (29,526 | ) | (3,557 | ) | (34,796 | ) | 1,070 | (1,257 | ) | 1,230 | (66,836 | ) | 184,622 | ||||||||||||||||||||||||||
Income tax adjustments | — | 802 | (754 | ) | — | — | — | 48 | 48 | |||||||||||||||||||||||||||||||
Taxes on income | 80,188 | (28,479 | ) | 51,709 | ||||||||||||||||||||||||||||||||||||
Income from continuing operations | 171,270 | (29,526 | ) | (4,359 | ) | (34,042 | ) | 1,070 | (1,257 | ) | 1,230 | (66,884 | ) | 28,479 | 132,865 | |||||||||||||||||||||||||
— | ||||||||||||||||||||||||||||||||||||||||
Income from discontinued operations, net of tax | 1,816 | — | — | — | — | — | — | — | 1,816 | |||||||||||||||||||||||||||||||
Net income | $ | 173,086 | $ | (29,526 | ) | $ | (4,359 | ) | $ | (34,042 | ) | $ | 1,070 | $ | (1,257 | ) | $ | 1,230 | $ | (66,884 | ) | $ | 28,479 | $ | 134,681 | |||||||||||||||
Basic weighted-average shares outstanding | 72,417 | 72,417 | ||||||||||||||||||||||||||||||||||||||
Diluted weighted-average shares outstanding | 72,924 | 73,087 | ||||||||||||||||||||||||||||||||||||||
Basic earnings per share | ||||||||||||||||||||||||||||||||||||||||
Income from continuing operations | $ | 2.37 | $ | 1.83 | ||||||||||||||||||||||||||||||||||||
Income from discontinued operations | $ | 0.02 | $ | 0.03 | ||||||||||||||||||||||||||||||||||||
Net income | $ | 2.39 | $ | 1.86 | ||||||||||||||||||||||||||||||||||||
Diluted earnings per share | ||||||||||||||||||||||||||||||||||||||||
Income from continuing operations | $ | 2.35 | $ | 1.82 | ||||||||||||||||||||||||||||||||||||
Income from discontinued operations | $ | 0.02 | $ | 0.02 | ||||||||||||||||||||||||||||||||||||
Net income | $ | 2.37 | $ | 1.84 |
ITEM 7: | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
• | timing of a self-service upgradeand/or replacement cycle in mature markets such as the United States; | |
• | high levels of deployment growth for new self-service products in emerging markets, such as Asia Pacific; | |
• | demand for new service offerings, including outsourcing or operating a network of ATMs; and | |
• | demand beyond expectations for security products and services for the financial, retail and government | |
Year ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2007 | 2006 | 2005 | Year ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
% of | % | % of | % | % of | 2008 | 2007 | 2006 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dollars | Net Sales | Change | Dollars | Net Sales | Change | Dollars | Net Sales | % of | % | % of | % | % of | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(As Restated) | (As Restated) | Dollars | Net Sales | Change | Dollars | Net Sales | Change | Dollars | Net Sales | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands, except percentages) | (In thousands, except percentages) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net sales | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Products | $ | 1,429,646 | 48.22 | (4.75 | ) | $ | 1,500,998 | 51.06 | 17.40 | $ | 1,278,555 | 49.50 | $ | 1,562,948 | 49.3 | 9.3 | $ | 1,429,646 | 48.5 | (4.8 | ) | $ | 1,500,998 | 51.4 | ||||||||||||||||||||||||||||||||||||||||
Services | 1,535,191 | 51.78 | 6.71 | 1,438,612 | 48.94 | 10.29 | 1,304,435 | 50.50 | 1,607,132 | 50.7 | 5.9 | 1,517,835 | 51.5 | 6.9 | 1,419,976 | 48.6 | ||||||||||||||||||||||||||||||||||||||||||||||||
2,964,837 | 100.00 | 0.86 | 2,939,610 | 100.00 | 13.81 | 2,582,990 | 100.00 | 3,170,080 | 100.0 | 7.6 | 2,947,481 | 100.0 | 0.9 | 2,920,974 | 100.0 | |||||||||||||||||||||||||||||||||||||||||||||||||
Cost of sales | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Products | 1,070,286 | 36.10 | 1.22 | 1,057,376 | 35.97 | 14.87 | 920,472 | 35.64 | 1,145,225 | 36.1 | 7.0 | 1,070,286 | 36.3 | 1.2 | 1,057,375 | 36.2 | ||||||||||||||||||||||||||||||||||||||||||||||||
Services | 1,210,701 | 40.84 | 5.77 | 1,144,645 | 38.94 | 13.44 | 1,009,010 | 39.06 | 1,230,239 | 38.8 | 2.9 | 1,195,286 | 40.6 | 5.9 | 1,128,428 | 38.6 | ||||||||||||||||||||||||||||||||||||||||||||||||
2,280,987 | 76.94 | 3.59 | 2,202,021 | 74.91 | 14.12 | 1,929,482 | 74.70 | �� | 2,375,464 | 74.9 | 4.9 | 2,265,572 | 76.9 | 3.6 | 2,185,803 | 74.8 | ||||||||||||||||||||||||||||||||||||||||||||||||
Gross profit | 683,850 | 23.06 | (7.29 | ) | 737,589 | 25.09 | 12.87 | 653,508 | 25.30 | 794,616 | 25.1 | 16.5 | 681,909 | 23.1 | (7.2 | ) | 735,171 | 25.2 | ||||||||||||||||||||||||||||||||||||||||||||||
Selling and administrative expenses | 470,615 | 15.87 | 1.41 | 464,068 | 15.79 | 12.95 | 410,874 | 15.91 | 534,486 | 16.9 | 15.4 | 463,354 | 15.7 | 1.3 | 457,267 | 15.7 | ||||||||||||||||||||||||||||||||||||||||||||||||
Research, development and engineering expense | 73,950 | 2.49 | 3.25 | 71,625 | 2.44 | 19.50 | 59,937 | 2.32 | 79,070 | 2.5 | 6.9 | 73,950 | 2.5 | 3.2 | 71,625 | 2.5 | ||||||||||||||||||||||||||||||||||||||||||||||||
Impairment of asset | 46,319 | 1.56 | 139.54 | 19,337 | 0.66 | — | 0.00 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Gain) loss on sale of assets, net | (6,392 | ) | (0.22 | ) | (2048.8 | ) | 328 | 0.01 | (756.00 | ) | (50 | ) | (0.00 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment of assets | 4,376 | 0.1 | (90.6 | ) | 46,319 | 1.6 | 139.5 | 19,337 | 0.7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss (gain) on sale of assets, net | 403 | 0.0 | (106.3 | ) | (6,392 | ) | (0.2 | ) | (2,048.8 | ) | 328 | 0.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
584,492 | 555,358 | 470,761 | 618,335 | 19.5 | 7.1 | 577,231 | 19.6 | 5.2 | 548,557 | 18.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating profit | 99,358 | 3.35 | (45.48 | ) | 182,231 | 6.20 | (0.28 | ) | 182,747 | 7.08 | 176,281 | 5.6 | 68.4 | 104,678 | 3.6 | (43.9 | ) | 186,614 | 6.4 | |||||||||||||||||||||||||||||||||||||||||||||
Other income (expense), net | (15,655 | ) | (0.53 | ) | (14.50 | ) | (18,311 | ) | (0.62 | ) | 22.36 | (14,965 | ) | (0.58 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
Other expense, net | (28,906 | ) | (0.9 | ) | 85.6 | (15,575 | ) | (0.5 | ) | (15.0 | ) | (18,324 | ) | (0.6 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
Minority interest | (8,365 | ) | (0.28 | ) | 29.65 | (6,452 | ) | (0.22 | ) | (6.02 | ) | (6,865 | ) | (0.27 | ) | (8,413 | ) | (0.3 | ) | 0.6 | (8,365 | ) | (0.3 | ) | 29.6 | (6,452 | ) | (0.2 | ) | |||||||||||||||||||||||||||||||||||
Income from continuing operations before tax | 75,338 | 2.54 | (52.16 | ) | 157,468 | 5.36 | (2.14 | ) | 160,917 | 6.23 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income from continuing operations before taxes | 138,962 | 4.4 | 72.1 | 80,738 | 2.7 | (50.1 | ) | 161,838 | 5.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Taxes on income | 35,797 | 1.21 | (32.35 | ) | 52,916 | 1.80 | (23.26 | ) | 68,955 | 2.67 | 37,425 | 1.2 | 4.5 | 35,797 | 1.2 | (32.4 | ) | 52,916 | 1.8 | |||||||||||||||||||||||||||||||||||||||||||||
Income from continuing operations | 39,541 | 1.33 | (62.18 | ) | 104,552 | 3.56 | 13.69 | 91,962 | 3.56 | 101,537 | 3.2 | 125.9 | 44,941 | 1.5 | (58.7 | ) | 108,922 | 3.7 | ||||||||||||||||||||||||||||||||||||||||||||||
Income from discontinued operations — net of tax | — | — | 909 | 0.04 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain on sale of discontinued operations — net of tax | — | — | 9,264 | 0.36 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income from discontinued operations | — | — | 10,173 | 0.39 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss from discontinued operations — net of tax | (12,954 | ) | (0.4 | ) | 139.9 | (5,400 | ) | (0.2 | ) | 23.6 | (4,370 | ) | (0.1 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | $ | 39,541 | 1.33 | (62.18 | ) | $ | 104,552 | 3.56 | 2.37 | $ | 102,135 | 3.95 | $ | 88,583 | 2.8 | 124.0 | $ | 39,541 | 1.3 | (62.2 | ) | $ | 104,552 | 3.6 | ||||||||||||||||||||||||||||||||||||||||
Year ended | ||||||||||||||||
December 31, | ||||||||||||||||
2008 | 2007 | $ Change | % Change | |||||||||||||
Net sales | $ | 3,170,080 | $ | 2,947,481 | $ | 222,599 | 7.6 |
Year ended December 31, | $ Change/ | |||||||||||||||
2008 | 2007 | % Point Change | % Change | |||||||||||||
Gross profit | $ | 794,616 | $ | 681,909 | $ | 112,707 | 16.5 | |||||||||
Gross profit margin | 25.1 | % | 23.1 | % | 2.0 |
Year ended December 31, | ||||||||||||||||||
2008 | 2007 | $ Change | % Change | |||||||||||||||
Selling and administrative expense | $ | 534,486 | $ | 463,354 | $ | 71,132 | 15.4 | |||||||||||
Research, development, and engineering expense | 79,070 | 73,950 | 5,120 | 6.9 | ||||||||||||||
Impairment of assets | 4,376 | 46,319 | (41,943 | ) | (90.6 | ) | ||||||||||||
Loss (gain) on sale of assets, net | 403 | (6,392 | ) | 6,795 | (106.3 | ) | ||||||||||||
Total operating expenses | $ | 618,335 | $ | 577,231 | $ | 41,104 | 7.1 | |||||||||||
Year ended December 31, | $ Change/ | |||||||||||||||
2008 | 2007 | % Point Change | % Change | |||||||||||||
Operating profit | $ | 176,281 | $ | 104,678 | $ | 71,603 | 68.4 | |||||||||
Operating profit margin | 5.6 | % | 3.6 | % | 2.0 |
Year ended December 31, | $ Change/ | ||||||||||||||||||
2008 | 2007 | % Point Change | % Change | ||||||||||||||||
Investment income | $ | 25,228 | $ | 22,489 | $ | 2,739 | 12.2 | ||||||||||||
Interest expense | (45,247 | ) | (42,200 | ) | (3,047 | ) | 7.2 | ||||||||||||
Miscellaneous, net | (8,887 | ) | 4,136 | (13,023 | ) | (314.9 | ) | ||||||||||||
Other income (expense) | $ | (28,906 | ) | $ | (15,575 | ) | $ | (13,331 | ) | 85.6 | |||||||||
Percentage of net sales | (0.9 | ) | (0.5 | ) | (0.4 | ) | |||||||||||||
Minority interest | $ | (8,413 | ) | $ | (8,365 | ) | $ | (48 | ) | 0.6 |
Year ended December 31, | $ Change/ | ||||||||||||||||||
2008 | 2007 | % Point Change | % Change | ||||||||||||||||
Income from continuing operations | $ | 101,537 | $ | 44,941 | $ | 56,596 | 125.9 | ||||||||||||
Percent of net sales | 3.2 | 1.5 | 1.7 | ||||||||||||||||
Effective tax rate | 26.9 | % | 44.3 | % | (17.4 | ) |
Year ended December 31, | $ Change/ | ||||||||||||||||||
2008 | 2007 | % Point Change | % Change | ||||||||||||||||
Loss from discontinued operations, net of tax | $ | (12,954 | ) | $ | (5,400 | ) | $ | (7,554 | ) | 139.9 | |||||||||
Percent of net sales | (0.4 | ) | (0.2 | ) | (0.2 | ) |
Year ended December 31, | $ Change/ | ||||||||||||||||||
2008 | 2007 | % Point Change | % Change | ||||||||||||||||
Net income | $ | 88,583 | $ | 39,541 | $ | 49,042 | 124.0 | ||||||||||||
Percent of net sales | 2.8 | 1.3 | 1.5 |
Year ended December 31, | ||||||||||||
2007 | 2006 | % Change | ||||||||||
(As Restated) | ||||||||||||
Net Sales | $ | 2,964,837 | $ | 2,939,610 | 0.9 | % |
Year ended | ||||||||||||||||
December 31, | ||||||||||||||||
2007 | 2006 | $ Change | % Change | |||||||||||||
Net sales | $ | 2,947,481 | $ | 2,920,974 | $ | 26,507 | 0.9 |
Year ended December 31, | ||||||||||||
2007 | 2006 | % Change | ||||||||||
(As Restated) | ||||||||||||
Gross Profit | $ | 683,850 | $ | 737,589 | (7.3 | )% | ||||||
Gross Profit Margin | 23.1 | % | 25.1 | % | (2.0 | )% |
Year ended December 31, | $ Change/ | |||||||||||||||
2007 | 2006 | % Point Change | % Change | |||||||||||||
Gross profit | $ | 681,909 | $ | 735,171 | $ | (53,262 | ) | (7.2 | ) | |||||||
Gross profit margin | 23.1 | % | 25.2 | % | (2.1 | ) |
Year ended December 31, | ||||||||||||||||||||||||||||||||
2007 | 2006 | % Change | Year ended December 31, | |||||||||||||||||||||||||||||
(As Restated) | 2007 | 2006 | $ Change | % Change | ||||||||||||||||||||||||||||
Selling and administrative expense | $ | 470,615 | $ | 464,068 | 1.4 | % | $ | 463,354 | $ | 457,267 | $ | 6,087 | 1.3 | |||||||||||||||||||
Research, development, and engineering expense | 73,950 | 71,625 | 3.2 | % | 73,950 | 71,625 | 2,325 | 3.2 | ||||||||||||||||||||||||
Impairment of asset | 46,319 | 19,337 | 139.5 | % | ||||||||||||||||||||||||||||
Impairment of assets | 46,319 | 19,337 | 26,982 | 139.5 | ||||||||||||||||||||||||||||
(Gain) loss on sale of assets, net | (6,392 | ) | 328 | (2048.8 | )% | (6,392 | ) | 328 | (6,720 | ) | N/M | |||||||||||||||||||||
Total Operating Expenses | $ | 584,492 | $ | 555,358 | 5.2 | % | ||||||||||||||||||||||||||
Percent of Net Sales | 19.7 | % | 18.9 | % | 0.8 | % | ||||||||||||||||||||||||||
Total operating expenses | $ | 577,231 | $ | 548,557 | $ | 28,674 | 5.2 | |||||||||||||||||||||||||
Year ended December 31, | ||||||||||||
2007 | 2006 | % Change | ||||||||||
(As Restated) | ||||||||||||
Operating Profit | $ | 99,358 | $ | 182,231 | (45.5 | )% | ||||||
Operating Profit Margin | 3.4 | % | 6.2 | % | (2.8 | )% |
Year ended December 31, | $ Change/ | |||||||||||||||
2007 | 2006 | % Point Change | % Change | |||||||||||||
Operating profit | $ | 104,678 | $ | 186,614 | $ | (81,936 | ) | (43.9 | ) | |||||||
Operating profit margin | 3.6 | % | 6.4 | % | (2.8 | ) |
Year ended December 31, | |||||||||||||||
2007 | 2006 | % Change | |||||||||||||
(As Restated) | |||||||||||||||
Investment Income | $ | 22,489 | $ | 19,069 | 17.9 | % | |||||||||
Interest Expense | (42,237 | ) | (35,294 | ) | 19.7 | % | |||||||||
Miscellaneous, Net | 4,093 | (2,086 | ) | (296.2 | )% | ||||||||||
Other Income (Expense) | $ | (15,655 | ) | $ | (18,311 | ) | (14.5 | )% | |||||||
Percentage of Net Sales | (0.5 | )% | (0.6 | )% | 0.1 | % | |||||||||
Minority Interest | (8,365 | ) | (6,452 | ) | 29.6 | % |
Year ended December 31, | $ Change/ | ||||||||||||||||||
2007 | 2006 | % Point Change | % Change | ||||||||||||||||
Investment income | $ | 22,489 | $ | 19,069 | $ | 3,420 | 17.9 | ||||||||||||
Interest expense | (42,200 | ) | (35,305 | ) | (6,895 | ) | 19.5 | ||||||||||||
Miscellaneous, net | 4,136 | (2,088 | ) | 6,224 | (298.1 | ) | |||||||||||||
Other income (expense) | $ | (15,575 | ) | $ | (18,324 | ) | $ | 2,749 | (15.0 | ) | |||||||||
Percentage of net sales | (0.5 | ) | (0.6 | ) | 0.1 | ||||||||||||||
Minority interest | $ | (8,365 | ) | $ | (6,452 | ) | $ | (1,913 | ) | 29.6 |
Year ended December 31, | |||||||||||||||
2007 | 2006 | % Change | |||||||||||||
(As Restated) | |||||||||||||||
Net Income | $ | 39,541 | $ | 104,552 | (62.2 | )% | |||||||||
Percent of Net Sales | 1.3 | % | 3.6 | % | (2.3 | )% | |||||||||
Effective Tax Rate | 47.5 | % | 33.6 | % | 13.9 | % | |||||||||
Year ended December 31, | $ Change/ | ||||||||||||||||||
2007 | 2006 | % Point Change | % Change | ||||||||||||||||
Income from continuing operations | $ | 44,941 | $ | 108,922 | $ | (63,981 | ) | (58.7 | ) | ||||||||||
Percent of net sales | 1.5 | 3.7 | (2.2 | ) | |||||||||||||||
Effective tax rate | 44.3 | % | 32.7 | % | 11.6 |
Year ended December 31, | $ Change/ | ||||||||||||||||||
2007 | 2006 | % Point Change | % Change | ||||||||||||||||
Loss from discontinued operations, net of tax | $ | (5,400 | ) | $ | (4,370 | ) | $ | (1,030 | ) | 23.6 | |||||||||
Percent of net sales | (0.2 | ) | (0.1 | ) | (0.1 | ) |
Year ended December 31, | $ Change/ | ||||||||||||||||||
2007 | 2006 | % Point Change | % Change | ||||||||||||||||
Net income | $ | 39,541 | $ | 104,552 | $ | (65,011 | ) | (62.2 | ) | ||||||||||
Percent of net sales | 1.3 | 3.6 | (2.3 | ) |
Year ended December 31, | |||||||||||||||
2006 | 2005 | % Change | |||||||||||||
(As Restated) | (As Restated) | ||||||||||||||
Net Sales | $ | 2,939,610 | $ | 2,582,990 | 13.8 | % |
Year ended December 31, | |||||||||||||||
2006 | 2005 | % Change | |||||||||||||
(As Restated) | (As Restated) | ||||||||||||||
Gross Profit | $ | 737,589 | $ | 653,508 | 12.9 | % | |||||||||
Gross Profit Margin | 25.1 | % | 25.3 | % | (0.2 | )% |
Year ended December 31, | |||||||||||||||
2006 | 2005 | % Change | |||||||||||||
(As Restated) | (As Restated) | ||||||||||||||
Selling and administrative expense | $ | 464,068 | $ | 410,874 | 12.9 | % | |||||||||
Research, development, and engineering expense | 71,625 | 59,937 | 19.5 | % | |||||||||||
Impairment of asset | 19,337 | — | 100.0 | % | |||||||||||
(Gain) loss on sale of assets, net | 328 | (50 | ) | (756.0 | )% | ||||||||||
Total Operating Expenses | $ | 555,358 | $ | 470,761 | 18.0 | % | |||||||||
Percent of Net Sales | 18.9 | % | 18.2 | % | 0.7 | % |
Year ended December 31, | |||||||||||||||
2006 | 2005 | % Change | |||||||||||||
(As Restated) | (As Restated) | ||||||||||||||
Operating Profit | $ | 182,231 | $ | 182,747 | (0.3 | )% | |||||||||
Operating Profit Margin | 6.2 | % | 7.1 | % | (0.9 | )% |
Year ended December 31, | |||||||||||||||
2006 | 2005 | % Change | |||||||||||||
(As Restated) | (As Restated) | ||||||||||||||
Investment Income | $ | 19,069 | $ | 12,004 | 58.9 | % | |||||||||
Interest Expense | (35,294 | ) | (16,200 | ) | 117.9 | % | |||||||||
Miscellaneous, Net | (2,086 | ) | (10,769 | ) | (80.6 | )% | |||||||||
Other Income (Expense) | $ | (18,311 | ) | $ | (14,965 | ) | 22.4 | % | |||||||
Percentage of Net Sales | (0.6 | )% | (0.6 | )% | 0.0 | % | |||||||||
Minority Interest | (6,452 | ) | (6,865 | ) | (6.0 | )% |
Year ended December 31, | |||||||||||||||
2006 | 2005 | % Change | |||||||||||||
(As Restated) | |||||||||||||||
Net Income | $ | 104,552 | $ | 102,135 | 2.4 | % | |||||||||
Percent of Net Sales | 3.6 | % | 4.0% | (0.4 | )% | ||||||||||
Effective Tax Rate | 33.6 | % | 42.9% | (9.3 | )% | ||||||||||
Year ended December 31, 2008 2007 2006 Operating activities $ 284,691 150,260 $ 232,926 Investing activities (142,484 ) (80,370) (171,324 ) Financing activities (87,689 ) (135,276) (23,774 ) Effect of exchange rate changes on cash and cash equivalents (19,416 ) 17,752 5,747 Net increase (decrease) in cash and cash equivalents $ 35,102 $ (47,634) $ 43,575
Payment Due by Period | Payment Due by period | |||||||||||||||||||||||||||||||||||||||||||||||||
Total | Less Than 1 Year | 1-3 Years | 3-5 Years | More Than 5 Years | Less Than | More Than | ||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | Total | 1 Year | 1-3 Years | 3-5 Years | 5 Years | |||||||||||||||||||||||||||||||||||||||||||||
Operating lease obligations | $ | 254,577 | $ | 75,834 | $ | 106,698 | $ | 45,758 | $ | 26,287 | $ | 218,582 | $ | 66,058 | $ | 89,679 | $ | 38,200 | $ | 24,645 | ||||||||||||||||||||||||||||||
Industrial development revenue bonds | 11,900 | — | — | — | 11,900 | 11,900 | — | — | — | 11,900 | ||||||||||||||||||||||||||||||||||||||||
Notes payable | 624,071 | 14,807 | 309,264 | — | 300,000 | 605,184 | 10,596 | 294,588 | 75,000 | 225,000 | ||||||||||||||||||||||||||||||||||||||||
Interest on bonds and notes payable(1) | 156,519 | 29,414 | 41,192 | 37,818 | 48,095 | |||||||||||||||||||||||||||||||||||||||||||||
Purchase commitments | 24,381 | 8,036 | 16,345 | — | — | 19,488 | 11,403 | 8,085 | — | — | ||||||||||||||||||||||||||||||||||||||||
$ | 914,929 | $ | 98,677 | $ | 432,307 | $ | 45,758 | $ | 338,187 | $ | 1,011,673 | $ | 117,471 | $ | 433,544 | $ | 151,018 | $ | 309,640 | |||||||||||||||||||||||||||||||
(1) | Amounts represent estimated contractual interest payments on outstanding bonds and notes payable. Rates in effect as of December 31, 2008 are used for variable rate debt. |
December 31, | ||||||||
2008 | 2007 | |||||||
Healthcare cost trend rate assumed for next year | 9.00 | % | 7.57 | % | ||||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 4.20 | % | 5.00 | % | ||||
Year that rate reaches ultimate trend rate | 2099 | 2014 |
One-Percentage- | One-Percentage- | |||||||
Point Increase | Point Decrease | |||||||
Effect on total of service and interest cost | $ | 80 | $ | (72 | ) | |||
Effect on postretirement benefit obligation | $ | 1,118 | $ | (1,009 | ) |
• | the results of the SEC and DOJ investigations; | |
• | competitive pressures, including pricing pressures and technological developments; | |
• | changes in the Company’s relationships with customers, suppliers, distributorsand/or partners in its business ventures; | |
• | changes in political, economic or other factors such as currency exchange rates, inflation rates, recessionary or expansive trends, taxes and regulations and laws affecting the worldwide business in each of the Company’s operations, including Brazil, where a significant portion of the Company’s revenue is derived; | |
• | the effects of the sub-prime mortgage crisis and the disruptions in the financial markets, including the bankruptcies, restructurings or consolidations of financial institutions, which could reduce our customer baseand/or adversely affect our customers’ ability to make capital expenditures, as well as adversely impact the availability and cost of credit; | |
• | acceptance of the Company’s product and technology introductions in the marketplace; | |
• | the amount of cash and non-cash charges in connection with the planned closure of the Company’s Newark, Ohio | |
• | unanticipated litigation, claims or assessments; | |
• | variations in consumer demand for financial self-service technologies, products and services; |
• | challenges raised about reliability and security of the Company’s election systems products, including the risk that such products will not be certified for use or will be decertified; | |
• | changes in laws regarding the Company’s election systems products and services; | |
• | potential security violations to the Company’s information technology systems; | |
• | the investment performance of our pension plan assets, which could require us to increase our pension contributions; | |
• | the Company’s ability to successfully execute its strategy related to the elections systems | |
• | the Company’s ability to achieve benefits from its cost-reduction initiatives and other strategic | |
• | the risk factors described above under “Item 1A. Risk Factors.” |
ITEM 7A: | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
Financial Statements: | ||||
Financial Statement Schedule: | ||||
All other schedules are omitted because they are not applicable. |
December 31, | ||||||||||||||||
2007 | 2006 | December 31, | ||||||||||||||
(As Restated) | 2008 | 2007 | ||||||||||||||
ASSETS | ASSETS | ASSETS | ||||||||||||||
Current assets | ||||||||||||||||
Cash and cash equivalents | $ | 206,334 | $ | 253,968 | $ | 241,436 | $ | 206,334 | ||||||||
Short-term investments | 104,976 | 99,571 | 121,387 | 104,976 | ||||||||||||
Trade receivables, less allowances of $33,707 for 2007 and $32,104 for 2006 | 544,501 | 618,315 | ||||||||||||||
Trade receivables, less allowances for doubtful accounts of $25,060 for 2008 and $33,707 for 2007 | 447,079 | 494,911 | ||||||||||||||
Inventories | 533,619 | 518,999 | 540,971 | 533,619 | ||||||||||||
Deferred income taxes | 80,443 | 86,290 | 95,086 | 80,443 | ||||||||||||
Prepaid expenses | 46,347 | 34,488 | 42,909 | 46,347 | ||||||||||||
Other current assets | 114,312 | 82,604 | 125,250 | 127,500 | ||||||||||||
Total Current Assets | 1,630,532 | 1,694,235 | ||||||||||||||
Total current assets | 1,614,118 | 1,594,130 | ||||||||||||||
Securities and other investments | 75,227 | 69,798 | 70,914 | 75,227 | ||||||||||||
Property, plant and equipment at cost | 575,796 | 550,497 | 579,951 | 575,796 | ||||||||||||
Less accumulated depreciation and amortization | 355,740 | 342,409 | 376,357 | 355,740 | ||||||||||||
Property, plant and equipment, net | 220,056 | 208,088 | 203,594 | 220,056 | ||||||||||||
Goodwill | 465,484 | 459,354 | 408,303 | 465,484 | ||||||||||||
Deferred income taxes | 69,698 | — | ||||||||||||||
Other assets | 239,827 | 165,185 | 171,309 | 239,827 | ||||||||||||
Total Assets | $ | 2,631,126 | $ | 2,596,660 | ||||||||||||
Total assets | $ | 2,537,936 | $ | 2,594,724 | ||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | LIABILITIES AND SHAREHOLDERS’ EQUITY | LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||
Current liabilities | ||||||||||||||||
Notes payable | $ | 14,807 | $ | 11,324 | $ | 10,596 | $ | 14,807 | ||||||||
Accounts payable | 170,632 | 156,306 | 195,483 | 170,632 | ||||||||||||
Deferred revenue | 301,248 | 368,717 | 195,164 | 251,657 | ||||||||||||
Payroll and benefits liabilities | 51,193 | 53,141 | 75,215 | 76,995 | ||||||||||||
Other current liabilities | 212,758 | 192,542 | 258,939 | 186,956 | ||||||||||||
Total Current Liabilities | 750,638 | 782,030 | 735,397 | 701,047 | ||||||||||||
Notes payable — long term | 609,264 | 665,481 | 594,588 | 609,264 | ||||||||||||
Pensions and other benefits | 36,708 | 41,142 | 131,792 | 36,708 | ||||||||||||
Postretirement and other benefits | 29,417 | 32,475 | 32,857 | 29,417 | ||||||||||||
Deferred income taxes | 39,393 | 26,405 | 35,307 | 39,393 | ||||||||||||
Other long-term liabilities | 37,115 | 28,814 | 43,737 | 50,304 | ||||||||||||
Minority interest | 13,757 | 21,880 | 17,657 | 13,757 | ||||||||||||
Commitments and Contingencies | — | — | ||||||||||||||
Shareholders’ equity | ||||||||||||||||
Preferred shares, no par value, authorized 1,000,000 shares, none issued | — | — | ||||||||||||||
Common shares, authorized 125,000,000 shares, issued 75,579,237 and 75,145,662, shares, respectively outstanding 65,965,749, and 65,595,596 shares, respectively | 94,474 | 93,932 | ||||||||||||||
Preferred shares, no par value, 1,000,000 authorized shares, none issued | — | — | ||||||||||||||
Common shares, 125,000,000 authorized shares, 75,801,434 and 75,579,237 issued shares, 66,114,560, and 65,965,749 outstanding shares, respectively | 94,752 | 94,474 | ||||||||||||||
Additional capital | 261,364 | 235,242 | 278,135 | 261,364 | ||||||||||||
Retained earnings | 1,036,824 | 1,059,725 | 1,054,873 | 1,036,824 | ||||||||||||
Treasury shares, at cost (9,613,488 and 9,550,066 shares, respectively) | (406,182 | ) | (403,098 | ) | ||||||||||||
Accumulated other comprehensive income | 128,354 | 12,632 | ||||||||||||||
Treasury shares, at cost (9,686,874 and 9,613,488 shares, respectively) | (408,235 | ) | (406,182 | ) | ||||||||||||
Accumulated other comprehensive (loss) gain | (72,924 | ) | 128,354 | |||||||||||||
Total shareholders’ equity | 1,114,834 | 998,433 | 946,601 | 1,114,834 | ||||||||||||
Total liabilities and shareholders’ equity | $ | 2,631,126 | $ | 2,596,660 | $ | 2,537,936 | $ | 2,594,724 | ||||||||
Year ended December 31, | ||||||||||||||||||||||||
2007 | 2006 | 2005 | Year Ended December 31, | |||||||||||||||||||||
(As Restated) | (As Restated) | 2008 | 2007 | 2006 | ||||||||||||||||||||
Net sales | ||||||||||||||||||||||||
Products | $ | 1,429,646 | $ | 1,500,998 | $ | 1,278,555 | $ | 1,562,948 | $ | 1,429,646 | $ | 1,500,998 | ||||||||||||
Services | 1,535,191 | 1,438,612 | 1,304,435 | 1,607,132 | 1,517,835 | 1,419,976 | ||||||||||||||||||
2,964,837 | 2,939,610 | 2,582,990 | 3,170,080 | 2,947,481 | 2,920,974 | |||||||||||||||||||
Cost of sales | ||||||||||||||||||||||||
Products | 1,070,286 | 1,057,376 | 920,472 | 1,145,225 | 1,070,286 | 1,057,375 | ||||||||||||||||||
Services | 1,210,701 | 1,144,645 | 1,009,010 | 1,230,239 | 1,195,286 | 1,128,428 | ||||||||||||||||||
2,280,987 | 2,202,021 | 1,929,482 | 2,375,464 | 2,265,572 | 2,185,803 | |||||||||||||||||||
Gross profit | 683,850 | 737,589 | 653,508 | 794,616 | 681,909 | 735,171 | ||||||||||||||||||
Selling and administrative expense | 470,615 | 464,068 | 410,874 | 534,486 | 463,354 | 457,267 | ||||||||||||||||||
Research, development and engineering expense | 73,950 | 71,625 | 59,937 | 79,070 | 73,950 | 71,625 | ||||||||||||||||||
Impairment of assets | 46,319 | 19,337 | — | 4,376 | 46,319 | 19,337 | ||||||||||||||||||
(Gain) loss on sale of assets, net | (6,392 | ) | 328 | (50 | ) | |||||||||||||||||||
Loss (gain) on sale of assets, net | 403 | (6,392 | ) | 328 | ||||||||||||||||||||
584,492 | 555,358 | 470,761 | 618,335 | 577,231 | 548,557 | |||||||||||||||||||
Operating profit | 99,358 | 182,231 | 182,747 | 176,281 | 104,678 | 186,614 | ||||||||||||||||||
Other income (expense) | ||||||||||||||||||||||||
Investment income | 22,489 | 19,069 | 12,004 | 25,228 | 22,489 | 19,069 | ||||||||||||||||||
Interest expense | (42,237 | ) | (35,294 | ) | (16,200 | ) | (45,247 | ) | (42,200 | ) | (35,305 | ) | ||||||||||||
Miscellaneous, net | 4,093 | (2,086 | ) | (10,769 | ) | (8,887 | ) | 4,136 | (2,088 | ) | ||||||||||||||
Minority interest | (8,365 | ) | (6,452 | ) | (6,865 | ) | (8,413 | ) | (8,365 | ) | (6,452 | ) | ||||||||||||
Income from continuing operations before taxes | 75,338 | 157,468 | 160,917 | 138,962 | 80,738 | 161,838 | ||||||||||||||||||
Taxes on income | 35,797 | 52,916 | 68,955 | 37,425 | 35,797 | 52,916 | ||||||||||||||||||
Income from continuing operations | 39,541 | 104,552 | 91,962 | 101,537 | 44,941 | 108,922 | ||||||||||||||||||
Income from discontinued operations — net of tax | — | — | 909 | |||||||||||||||||||||
Gain on sale of discontinued operations — net of tax | — | — | 9,264 | |||||||||||||||||||||
Income from discontinued operations | — | — | 10,173 | |||||||||||||||||||||
Loss from discontinued operations, net of tax | (12,954 | ) | (5,400 | ) | (4,370 | ) | ||||||||||||||||||
Net income | $ | 39,541 | $ | 104,552 | $ | 102,135 | $ | 88,583 | $ | 39,541 | $ | 104,552 | ||||||||||||
Basic weighted-average shares outstanding | 65,841 | 66,669 | 70,577 | 66,081 | 65,841 | 66,669 | ||||||||||||||||||
Diluted weighted-average shares outstanding | 66,673 | 67,253 | 71,340 | 66,492 | 66,673 | 67,253 | ||||||||||||||||||
Basic earnings per share: | ||||||||||||||||||||||||
Net income from continuing operations | $ | 0.60 | $ | 1.57 | $ | 1.30 | $ | 1.54 | $ | 0.68 | $ | 1.63 | ||||||||||||
Net income from discontinued operations | $ | — | $ | — | $ | 0.15 | ||||||||||||||||||
Loss from discontinued operations | $ | (0.20 | ) | $ | (0.08 | ) | $ | (0.06 | ) | |||||||||||||||
Net income | $ | 0.60 | $ | 1.57 | $ | 1.45 | $ | 1.34 | $ | 0.60 | $ | 1.57 | ||||||||||||
Diluted earnings per share: | ||||||||||||||||||||||||
Net income from continuing operations | $ | 0.59 | $ | 1.55 | $ | 1.29 | $ | 1.52 | $ | 0.67 | $ | 1.62 | ||||||||||||
Net income from discontinued operations | $ | — | $ | — | $ | 0.14 | ||||||||||||||||||
Loss from discontinued operations | $ | (0.19 | ) | $ | (0.08 | ) | $ | (0.07 | ) | |||||||||||||||
Net income | $ | 0.59 | $ | 1.55 | $ | 1.43 | $ | 1.33 | $ | 0.59 | $ | 1.55 | ||||||||||||
Accumulated | Accumulated | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | Other | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Shares | Additional | Retained | Treasury | Comprehensive | Comprehensive | Common Shares | Additional | Retained | Treasury | Comprehensive | Comprehensive | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number | Par Value | Capital | Earnings | Shares | Income (Loss) | Income (Loss) | Other | Total | Number | Par Value | Capital | Earnings | Shares | (Loss) Income | (Loss) Income | Other | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2005 (As Restated) | 74,233,384 | $ | 92,792 | $ | 179,259 | $ | 969,198 | $ | (113,687 | ) | $ | (1,432 | ) | $ | (210 | ) | $ | 1,125,920 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 102,135 | �� | $ | 102,135 | 102,135 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Translation adjustment | (5,703 | ) | (5,703 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pensions | 3,354 | 3,354 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | (2,349 | ) | (2,349 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | $ | 99,786 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock options exercised | 332,412 | 416 | 9,608 | 10,024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted shares | 9,050 | 11 | 467 | (77 | ) | 401 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted stock units | 3,140 | 4 | 150 | 154 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performance shares | 148,045 | 185 | 7,802 | 7,987 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other share-based compensation | (415 | ) | (415 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax benefit from employee stock plans | 1,748 | 1,748 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared and paid | (58,196 | ) | (58,196 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury shares | (142,649 | ) | (142,649 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2005 (As Restated) | 74,726,031 | $ | 93,408 | $ | 198,619 | $ | 1,013,137 | $ | (256,336 | ) | $ | (3,781 | ) | $ | (287 | ) | $ | 1,044,760 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2006 | 74,726,031 | $ | 93,408 | $ | 198,619 | $ | 1,013,137 | $ | (256,336 | ) | $ | (3,781 | ) | $ | (287 | ) | $ | 1,044,760 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 104,552 | $ | 104,552 | 104,552 | 104,552 | $ | 104,552 | 104,552 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Translation adjustment | 48,678 | 48,718 | 50,246 | 50,246 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hedges | 3,996 | 3,956 | 2,428 | 2,428 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pensions | (637 | ) | (637 | ) | (637 | ) | (637 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | 52,037 | 52,037 | 52,037 | 52,037 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | $ | 156,589 | $ | 156,589 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock options exercised | 336,085 | 420 | 10,703 | 11,123 | 336,085 | 420 | 10,703 | 11,123 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted stock units issued | 4,635 | 6 | (6 | ) | — | 4,635 | 6 | (6 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performance shares issued | 5,800 | 7 | (7 | ) | — | 5,800 | 7 | (7 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other share-based compensation | 73,111 | 91 | 1,881 | 1,972 | 73,111 | 91 | 1,881 | 1,972 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax benefit from employee stock plans | 1,198 | 1,198 | 1,198 | 1,198 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SFAS No. 123(R) reclass | 4,807 | 287 | 5,094 | 4,807 | 287 | 5,094 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SFAS No. 158 adoption, net | (35,624 | ) | (35,624 | ) | (35,624 | ) | (35,624 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
compensation expense | 17,195 | 17,195 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | 17,195 | 17,195 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Colombia acquisition | 816 | 2,592 | 3,408 | 816 | 2,592 | 3,408 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DIMS acquisition | 36 | 905 | 941 | 36 | 905 | 941 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared and paid | (57,964 | ) | (57,964 | ) | (57,964 | ) | (57,964 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury shares | (150,259 | ) | (150,259 | ) | (150,259 | ) | (150,259 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2006 (As Restated) | 75,145,662 | $ | 93,932 | $ | 235,242 | $ | 1,059,725 | $ | (403,098 | ) | $ | 12,632 | $ | — | $ | 998,433 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2006 | 75,145,662 | $ | 93,932 | $ | 235,242 | $ | 1,059,725 | $ | (403,098 | ) | $ | 12,632 | $ | — | $ | 998,433 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 39,541 | $ | 39,541 | 39,541 | 39,541 | $ | 39,541 | 39,541 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Translation adjustment | 84,584 | 84,584 | 88,508 | 88,508 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hedges | 1,962 | 1,962 | (1,962 | ) | (1,962 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pensions | 29,176 | 29,176 | 29,176 | 29,176 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | 115,722 | 115,722 | 115,722 | 115,722 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | $ | 155,263 | $ | 155,263 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock options exercised | 241,365 | 302 | 8,253 | 8,555 | 241,365 | 302 | 8,252 | 8,554 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted shares | 8,620 | 11 | 295 | 306 | 8,620 | 11 | 295 | 306 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted stock units issued | 84,865 | 106 | (106 | ) | — | 84,865 | 106 | (106 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performance shares issued | 98,725 | 123 | 2,500 | 2,623 | 98,725 | 123 | 2,500 | 2,623 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax benefit from employee stock plans | 1,399 | 1,399 | 1,399 | 1,399 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
compensation expense | 13,781 | 13,781 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | 13,782 | 13,782 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared and paid | (62,442 | ) | (62,442 | ) | (62,442 | ) | (62,442 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury shares | (3,084 | ) | (3,084 | ) | (3,084 | ) | (3,084 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2007 | 75,579,237 | $ | 94,474 | $ | 261,364 | $ | 1,036,824 | $ | (406,182 | ) | $ | 128,354 | $ | — | $ | 1,114,834 | 75,579,237 | $ | 94,474 | $ | 261,364 | $ | 1,036,824 | $ | (406,182 | ) | $ | 128,354 | $ | — | $ | 1,114,834 | ||||||||||||||||||||||||||||||||||||||||
Pension beginning retained earnings adjustment (Note 11) | (1,387 | ) | (1,387 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Split-dollar life insurance beginning retained earnings adjustment (Note 1) | (2,584 | ) | (2,584 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 88,583 | $ | 88,583 | 88,583 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Translation adjustment | (99,689 | ) | (99,689 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hedges | (4,910 | ) | (4,910 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pensions | (96,679 | ) | (96,679 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | (201,278 | ) | (201,278 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive loss | $ | (112,695 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock options exercised | 665 | 1 | 16 | 17 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted shares | 121,985 | 152 | 5,861 | 6,013 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted stock units issued | 49,526 | 62 | (62 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performance shares issued | 50,021 | 63 | 719 | 782 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax expense from employee stock plans | (2,122 | ) | (2,122 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | 12,189 | 12,189 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Colombia acquisition earnout | 170 | 230 | 400 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared and paid | (66,563 | ) | (66,563 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury shares | (2,283 | ) | (2,283 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2008 | 75,801,434 | $ | 94,752 | $ | 278,135 | $ | 1,054,873 | $ | (408,235 | ) | $ | (72,924 | ) | $ | — | $ | 946,601 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Years ended December 31, | ||||||||||||||||||||||||
2007 | 2006 | 2005 | Year Ended December 31, | |||||||||||||||||||||
(As Restated) | (As Restated) | 2008 | 2007 | 2006 | ||||||||||||||||||||
Cash flow from operating activities: | ||||||||||||||||||||||||
Net income | $ | 39,541 | $ | 104,552 | $ | 102,135 | $ | 88,583 | $ | 39,541 | $ | 104,552 | ||||||||||||
Adjustments to reconcile net income to cash provided by operating activities: | ||||||||||||||||||||||||
Income from discontinued operations | — | — | (909 | ) | ||||||||||||||||||||
Loss from discontinued operations | 12,954 | 5,400 | 4,370 | |||||||||||||||||||||
Minority interest | 8,365 | 6,452 | 6,865 | 8,413 | 8,365 | 6,452 | ||||||||||||||||||
Depreciation and amortization | 63,380 | 70,726 | 62,516 | 80,470 | 69,397 | 70,726 | ||||||||||||||||||
Share-based compensation | 13,782 | 17,195 | (4,254 | ) | 12,189 | 13,782 | 17,195 | |||||||||||||||||
Excess tax benefits from share-based compensation | (917 | ) | (890 | ) | — | (168 | ) | (917 | ) | (890 | ) | |||||||||||||
Deferred income taxes | 9,571 | (23,592 | ) | 18,402 | (12,547 | ) | (7,250 | ) | (23,592 | ) | ||||||||||||||
Impairment of asset | 46,319 | 19,337 | — | 4,376 | 46,319 | 19,337 | ||||||||||||||||||
Gain on sale of discontinued operations | — | — | (9,264 | ) | ||||||||||||||||||||
(Gain) loss on sale of assets, net | (6,392 | ) | 328 | (50 | ) | |||||||||||||||||||
Loss (gain) on sale of assets, net | 403 | (6,392 | ) | 328 | ||||||||||||||||||||
Cash provided (used) by changes in certain assets and liabilities: | ||||||||||||||||||||||||
Trade receivables | 107,501 | 78,112 | (94,649 | ) | 10,633 | 120,949 | 46,109 | |||||||||||||||||
Inventories | 8,955 | (4,258 | ) | (52,003 | ) | (53,650 | ) | 8,955 | (4,258 | ) | ||||||||||||||
Prepaid expenses | (10,256 | ) | (13,323 | ) | (1,678 | ) | 1,183 | (10,256 | ) | (13,323 | ) | |||||||||||||
Other current assets | (6,866 | ) | (1,493 | ) | (19,995 | ) | (14,706 | ) | (20,055 | ) | (1,493 | ) | ||||||||||||
Accounts payable | 6,331 | (36,031 | ) | 41,297 | 36,480 | 6,331 | (36,031 | ) | ||||||||||||||||
Deferred revenue | (76,473 | ) | 1,688 | 55,215 | (49,668 | ) | (89,921 | ) | 33,691 | |||||||||||||||
Pension and postretirement benefits | (20,802 | ) | 14,038 | (13,541 | ) | (2,900 | ) | (20,802 | ) | 14,038 | ||||||||||||||
Certain other assets and liabilities | (31,779 | ) | 85 | (8,328 | ) | 162,646 | (13,186 | ) | (4,285 | ) | ||||||||||||||
Net cash provided by operating activities | 150,260 | 232,926 | 81,759 | 284,691 | 150,260 | 232,926 | ||||||||||||||||||
Cash flow from investing activities: | ||||||||||||||||||||||||
Proceeds from sale of discontinued operations | — | — | 29,350 | |||||||||||||||||||||
Payments for acquisitions, net of cash acquired | (18,122 | ) | (74,320 | ) | (29,578 | ) | (4,461 | ) | (18,122 | ) | (74,320 | ) | ||||||||||||
Proceeds from maturities of investments | 57,433 | 79,304 | 40,291 | 303,410 | 57,433 | 79,304 | ||||||||||||||||||
Payments for purchases of investments | (50,588 | ) | (124,648 | ) | (61,052 | ) | (357,091 | ) | (50,588 | ) | (124,648 | ) | ||||||||||||
Proceeds from sale of fixed assets | 3,242 | 6,442 | 2,087 | 42 | 3,242 | 6,442 | ||||||||||||||||||
Capital expenditures | (43,259 | ) | (38,514 | ) | (46,183 | ) | (57,932 | ) | (43,259 | ) | (38,514 | ) | ||||||||||||
Increase in certain other assets | (29,076 | ) | (19,588 | ) | (19,124 | ) | (26,452 | ) | (29,076 | ) | (19,588 | ) | ||||||||||||
Net cash used by investing activities | (80,370 | ) | (171,324 | ) | (84,209 | ) | (142,484 | ) | (80,370 | ) | (171,324 | ) | ||||||||||||
Cash flow from financing activities: | ||||||||||||||||||||||||
Dividends paid | (62,442 | ) | (57,964 | ) | (58,196 | ) | (66,563 | ) | (62,442 | ) | (57,964 | ) | ||||||||||||
Notes payable borrowings | 720,299 | 1,664,986 | 1,184,840 | 606,269 | 720,299 | 1,664,986 | ||||||||||||||||||
Notes payable repayments | (784,358 | ) | (1,492,658 | ) | (970,298 | ) | (624,040 | ) | (784,358 | ) | (1,492,658 | ) | ||||||||||||
Distribution of affiliates’ earnings to minority interest holder | (18,236 | ) | (716 | ) | (805 | ) | (3,523 | ) | (18,236 | ) | (716 | ) | ||||||||||||
Excess tax benefits from share-based compensation | 917 | 890 | — | 168 | 917 | 890 | ||||||||||||||||||
Issuance of common shares | 8,544 | 9,745 | 9,048 | — | 8,544 | 9,745 | ||||||||||||||||||
Repurchase of common shares | — | (148,057 | ) | (138,207 | ) | — | — | (148,057 | ) | |||||||||||||||
Net cash (used) provided by financing activities | (135,276 | ) | (23,774 | ) | 26,382 | |||||||||||||||||||
Net cash used by financing activities | (87,689 | ) | (135,276 | ) | (23,774 | ) | ||||||||||||||||||
Effect of exchange rate changes on cash | 17,752 | 5,749 | 115 | (19,416 | ) | 17,752 | 5,747 | |||||||||||||||||
Increase (decrease) in cash and cash equivalents | (47,634 | ) | 43,575 | 24,047 | 35,102 | (47,634 | ) | 43,575 | ||||||||||||||||
Cash and cash equivalents at the beginning of the year | 253,968 | 210,393 | 186,346 | 206,334 | 253,968 | 210,393 | ||||||||||||||||||
Cash and cash equivalents at the end of the year | $ | 206,334 | $ | 253,968 | $ | 210,393 | $ | 241,436 | $ | 206,334 | $ | 253,968 | ||||||||||||
Cash paid for: | ||||||||||||||||||||||||
Income taxes | $ | 53,176 | $ | 43,065 | $ | 59,803 | $ | 42,154 | $ | 53,176 | $ | 43,065 | ||||||||||||
Interest | $ | 32,706 | $ | 33,235 | $ | 16,274 | $ | 30,747 | $ | 32,706 | $ | 33,235 |
NOTE 1: | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
DNA | DI | ES & Other | Total | |||||||||||||
Balance at January 1, 2006 (As Restated) | $ | 57,100 | $ | 284,894 | $ | 43,563 | $ | 385,557 | ||||||||
Goodwill of acquired businesses & purchase accounting adjustments | 42,704 | 2,989 | 1,816 | 47,509 | ||||||||||||
Currency translation adjustment | (5 | ) | 26,293 | — | 26,288 | |||||||||||
Balance at December 31, 2006 (As Restated) | 99,799 | 314,176 | 45,379 | 459,354 | ||||||||||||
Goodwill of acquired businesses & purchase accounting adjustments | 10,556 | 1,472 | 940 | 12,968 | ||||||||||||
Impairment Loss | — | — | (46,319 | ) | (46,319 | ) | ||||||||||
Currency translation adjustment | 1,444 | 38,037 | — | 39,481 | ||||||||||||
Balance at December 31, 2007 | $ | 111,799 | $ | 353,685 | $ | — | $ | 465,484 | ||||||||
DNA | DI | ES & Other | Total | |||||||||||||
Balance at January 1, 2007 | $ | 99,799 | $ | 314,176 | $ | 45,379 | $ | 459,354 | ||||||||
Goodwill of acquired businesses & purchase accounting adjustments | 10,556 | 1,472 | 940 | 12,968 | ||||||||||||
Impairment loss | — | — | (46,319 | ) | (46,319 | ) | ||||||||||
Currency translation adjustment | 1,444 | 38,037 | — | 39,481 | ||||||||||||
Balance at December 31, 2007 | 111,799 | 353,685 | — | 465,484 | ||||||||||||
Goodwill of acquired businesses & purchase accounting adjustments | 4,320 | 758 | — | 5,078 | ||||||||||||
Impairment loss | (13,171 | ) | — | — | (13,171 | ) | ||||||||||
Currency translation adjustment | (6,583 | ) | (42,505 | ) | — | (49,088 | ) | |||||||||
Balance at December 31, 2008 | $ | 96,365 | $ | 311,938 | $ | — | $ | 408,303 | ||||||||
Year ended December 31, | ||||||||||||
2007 | 2006 | 2005 | ||||||||||
(As Restated) | (As Restated) | |||||||||||
Translation adjustment | $ | 138,008 | $ | 49,539 | $ | 821 | ||||||
Realized and unrealized gains on hedges | 2,033 | 3,956 | — | |||||||||
Pensions less accumulated taxes of ($6,213), ($23,812), and ($1,571), respectively | (11,687 | ) | (40,863 | ) | (4,602 | ) | ||||||
Total accumulated other comprehensive income (loss) | $ | 128,354 | $ | 12,632 | $ | (3,781 | ) | |||||
Year Ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Translation adjustment | $ | 38,319 | $ | 138,008 | $ | 49,500 | ||||||
Realized and unrealized (losses) gains on hedges | (2,877 | ) | 2,033 | 3,995 | ||||||||
Pensions less accumulated taxes of ($64,573), ($6,213), and ($23,812), respectively | (108,366 | ) | (11,687 | ) | (40,863 | ) | ||||||
Total accumulated other comprehensive (loss) income | $ | (72,924 | ) | $ | 128,354 | $ | 12,632 | |||||
NOTE 2: |
Revenue Recognition | Account | Total | ||||||||||||||||||||||||||||
Bill & Hold | Other | Reconciliations | Inventory | Capitalization | Other | Adjustments | ||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||
2006 | Bill & Hold Revenue | $ | 1,582 | — | — | — | — | — | $ | 1,582 | ||||||||||||||||||||
Service Contract Revenue | — | — | (2,350 | ) | — | — | — | (2,350 | ) | |||||||||||||||||||||
ERP Capitalization | — | — | — | — | 653 | — | 653 | |||||||||||||||||||||||
AP Float and Related Reserve | — | — | 1,121 | — | — | — | 1,121 | |||||||||||||||||||||||
Installation Allowance | — | — | 666 | — | — | — | 666 | |||||||||||||||||||||||
Finished Goods Inventory | — | — | — | 335 | — | — | 335 | |||||||||||||||||||||||
Refurbished Inventory | — | — | — | 2,317 | — | — | 2,317 | |||||||||||||||||||||||
AP Wire Clearing Account | — | — | 6,168 | — | — | — | 6,168 | |||||||||||||||||||||||
Subtotal | 1,582 | — | 5,605 | 2,652 | 653 | — | 10,492 | |||||||||||||||||||||||
All Other Adjustments, net | — | 3,791 | 12,216 | 3,409 | (316 | ) | 3,427 | 22,527 | ||||||||||||||||||||||
Total | $ | 1,582 | $ | 3,791 | $ | 17,821 | $ | 6,061 | $ | 337 | $ | 3,427 | $ | 33,019 | ||||||||||||||||
2005 | Bill & Hold Revenue | $ | 14,807 | — | — | — | — | — | $ | 14,807 | ||||||||||||||||||||
Service Contract Revenue | — | — | (1,165 | ) | — | — | — | (1,165 | ) | |||||||||||||||||||||
ERP Capitalization | — | — | — | — | (6,787 | ) | — | (6,787 | ) | |||||||||||||||||||||
AP Float and Related Reserve | — | — | (362 | ) | — | — | — | (362 | ) | |||||||||||||||||||||
Installation Allowance | — | — | 8,050 | — | — | — | 8,050 | |||||||||||||||||||||||
Finished Goods Inventory | — | — | — | 9,074 | — | — | 9,074 | |||||||||||||||||||||||
Refurbished Inventory | — | — | — | (1,517 | ) | — | — | (1,517 | ) | |||||||||||||||||||||
AP Wire Clearing Account | — | — | (842 | ) | — | — | — | (842 | ) | |||||||||||||||||||||
Subtotal | 14,807 | — | 5,681 | 7,557 | (6,787 | ) | — | 21,258 | ||||||||||||||||||||||
All Other Adjustments, net | — | (2,026 | ) | 8,634 | (5,459 | ) | 1,465 | (1,206 | ) | 1,408 | ||||||||||||||||||||
Total | $ | 14,807 | $ | (2,026 | ) | $ | 14,315 | $ | 2,098 | $ | (5,322 | ) | $ | (1,206 | ) | $ | 22,666 | |||||||||||||
Year ended December 31, 2006 | ||||||||||||||||||||||||||||||||||||||||
Adjustments | ||||||||||||||||||||||||||||||||||||||||
As | Revenue Recognition | Account | Total | Provision for | ||||||||||||||||||||||||||||||||||||
Reported | Bill & Hold | Other | Reconciliations | Inventory | Capitalization | Other | Adjustments | Income Tax | As Restated | |||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||
Net sales | ||||||||||||||||||||||||||||||||||||||||
Products | $ | 1,469,250 | $ | 24,057 | $ | 9,090 | $ | (1,399 | ) | $ | 1,636 | $ | — | $ | (1,636 | ) | $ | 31,748 | $ | 1,500,998 | ||||||||||||||||||||
Services | 1,436,982 | 3,325 | (1,631 | ) | (64 | ) | — | — | — | 1,630 | 1,438,612 | |||||||||||||||||||||||||||||
2,906,232 | 27,382 | 7,459 | (1,463 | ) | 1,636 | — | (1,636 | ) | 33,378 | 2,939,610 | ||||||||||||||||||||||||||||||
Cost of sales | ||||||||||||||||||||||||||||||||||||||||
Products | 1,046,617 | 22,787 | 4,663 | (10,371 | ) | (3,866 | ) | — | (2,454 | ) | 10,759 | 1,057,376 | ||||||||||||||||||||||||||||
Services | 1,149,097 | 2,409 | (573 | ) | (5,725 | ) | (559 | ) | (4 | ) | — | (4,452 | ) | 1,144,645 | ||||||||||||||||||||||||||
2,195,714 | 25,196 | 4,090 | (16,096 | ) | (4,425 | ) | (4 | ) | (2,454 | ) | 6,307 | 2,202,021 | ||||||||||||||||||||||||||||
Gross profit | 710,518 | 2,186 | 3,369 | 14,633 | 6,061 | 4 | 818 | 27,071 | 737,589 | |||||||||||||||||||||||||||||||
Selling and administrative expense | 463,862 | 155 | (577 | ) | (1,961 | ) | — | 2,792 | (203 | ) | 206 | 464,068 | ||||||||||||||||||||||||||||
Research, development and engineering expense | 70,995 | 594 | — | 36 | — | — | — | 630 | 71,625 | |||||||||||||||||||||||||||||||
Impairment of asset | 22,462 | — | — | — | — | (3,125 | ) | — | (3,125 | ) | 19,337 | |||||||||||||||||||||||||||||
Loss on sale of assets, net | 328 | — | — | — | — | — | — | — | 328 | |||||||||||||||||||||||||||||||
557,647 | 749 | (577 | ) | (1,925 | ) | — | (333 | ) | (203 | ) | (2,289 | ) | 555,358 | |||||||||||||||||||||||||||
Operating profit | 152,871 | 1,437 | 3,946 | 16,558 | 6,061 | 337 | 1,021 | 29,360 | 182,231 | |||||||||||||||||||||||||||||||
Other income (expense) Investment income | 19,224 | — | (155 | ) | — | — | — | — | (155 | ) | 19,069 | |||||||||||||||||||||||||||||
Interest expense | (36,024 | ) | — | — | — | — | — | 730 | 730 | (35,294 | ) | |||||||||||||||||||||||||||||
Miscellaneous, net | (5,025 | ) | — | — | 1,263 | — | — | 1,676 | 2,939 | (2,086 | ) | |||||||||||||||||||||||||||||
Minority interest | (6,597 | ) | 145 | — | — | — | — | — | 145 | (6,452 | ) | |||||||||||||||||||||||||||||
Income from continuing operations before taxes | 124,449 | 1,582 | 3,791 | 17,821 | 6,061 | 337 | 3,427 | 33,019 | 157,468 | |||||||||||||||||||||||||||||||
Income tax adjustments | — | — | 1,053 | — | — | — | — | 1,053 | 1,053 | |||||||||||||||||||||||||||||||
Taxes on income | 37,902 | 13,961 | 51,863 | |||||||||||||||||||||||||||||||||||||
Income from continuing operations | 86,547 | 1,582 | 2,738 | 17,821 | 6,061 | 337 | 3,427 | 31,966 | (13,961 | ) | 104,552 | |||||||||||||||||||||||||||||
Net income | $ | 86,547 | $ | 1,582 | $ | 2,738 | $ | 17,821 | $ | 6,061 | $ | 337 | $ | 3,427 | $ | 31,966 | $ | (13,961 | ) | $ | 104,552 | |||||||||||||||||||
Basic weighted-average shares outstanding | 66,669 | 66,669 | ||||||||||||||||||||||||||||||||||||||
Diluted weighted-average shares outstanding | 66,885 | 67,253 | ||||||||||||||||||||||||||||||||||||||
Basic earnings per share | ||||||||||||||||||||||||||||||||||||||||
Income from continuing operations | $ | 1.30 | $ | 1.57 | ||||||||||||||||||||||||||||||||||||
Net income | $ | 1.30 | $ | 1.57 | ||||||||||||||||||||||||||||||||||||
Diluted earnings per share | ||||||||||||||||||||||||||||||||||||||||
Income from continuing operations | $ | 1.29 | $ | 1.55 | ||||||||||||||||||||||||||||||||||||
Net income | $ | 1.29 | $ | 1.55 |
Year ended December 31, 2005 | ||||||||||||||||||||||||||||||||||||||||
Adjustments | ||||||||||||||||||||||||||||||||||||||||
As | Revenue Recognition | Account | Total | Provision for | ||||||||||||||||||||||||||||||||||||
Reported | Bill & Hold | Other | Reconciliations | Inventory | Capitalization | Other | Adjustments | Income Tax | As Restated | |||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||
Net sales | ||||||||||||||||||||||||||||||||||||||||
Products | $ | 1,293,419 | $ | (8,347 | ) | $ | (10,664 | ) | $ | 4,147 | $ | (1,544 | ) | $ | — | $ | 1,544 | $ | (14,864 | ) | $ | 1,278,555 | ||||||||||||||||||
Services | 1,293,630 | 11,742 | (56 | ) | (881 | ) | — | — | — | 10,805 | 1,304,435 | |||||||||||||||||||||||||||||
2,587,049 | 3,395 | (10,720 | ) | 3,266 | (1,544 | ) | — | 1,544 | (4,059 | ) | 2,582,990 | |||||||||||||||||||||||||||||
Cost of sales | ||||||||||||||||||||||||||||||||||||||||
Products | 952,321 | (17,657 | ) | (8,991 | ) | (2,975 | ) | (3,976 | ) | — | 1,750 | (31,849 | ) | 920,472 | ||||||||||||||||||||||||||
Services | 1,009,246 | 6,903 | (436 | ) | (6,634 | ) | 334 | (403 | ) | — | (236 | ) | 1,009,010 | |||||||||||||||||||||||||||
1,961,567 | (10,754 | ) | (9,427 | ) | (9,609 | ) | (3,642 | ) | (403 | ) | 1,750 | (32,085 | ) | 1,929,482 | ||||||||||||||||||||||||||
Gross profit | 625,482 | 14,149 | (1,293 | ) | 12,875 | 2,098 | 403 | (206 | ) | 28,026 | 653,508 | |||||||||||||||||||||||||||||
Selling and administrative expense | 403,804 | — | 597 | (1,157 | ) | — | 5,725 | 1,905 | 7,070 | 410,874 | ||||||||||||||||||||||||||||||
Research, development and engineering expense | 60,409 | (694 | ) | — | 222 | — | — | — | (472 | ) | 59,937 | |||||||||||||||||||||||||||||
Impairment of asset | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Gain on sale of assets, net | (50 | ) | — | — | — | — | — | — | — | (50 | ) | |||||||||||||||||||||||||||||
464,163 | (694 | ) | 597 | (935 | ) | — | 5,725 | 1,905 | 6,598 | 470,761 | ||||||||||||||||||||||||||||||
Operating profit | 161,319 | 14,843 | (1,890 | ) | 13,810 | 2,098 | (5,322 | ) | (2,111 | ) | 21,428 | 182,747 | ||||||||||||||||||||||||||||
Other income (expense) | ||||||||||||||||||||||||||||||||||||||||
Investment income | 12,165 | — | (136 | ) | (25 | ) | — | — | — | (161 | ) | 12,004 | ||||||||||||||||||||||||||||
Interest expense | (16,511 | ) | — | — | — | — | — | 311 | 311 | (16,200 | ) | |||||||||||||||||||||||||||||
Miscellaneous, net | (11,893 | ) | — | — | 530 | — | — | 594 | 1,124 | (10,769 | ) | |||||||||||||||||||||||||||||
Minority interest | (6,829 | ) | (36 | ) | — | — | — | — | — | (36 | ) | (6,865 | ) | |||||||||||||||||||||||||||
Income from continuing operations before taxes | 138,251 | 14,807 | (2,026 | ) | 14,315 | 2,098 | (5,322 | ) | (1,206 | ) | 22,666 | 160,917 | ||||||||||||||||||||||||||||
Income tax adjustments | — | — | 1,892 | — | — | — | — | 1,892 | 1,892 | |||||||||||||||||||||||||||||||
Taxes on income | 55,347 | 11,716 | 67,063 | |||||||||||||||||||||||||||||||||||||
Income from continuing operations | 82,904 | 14,807 | (3,918 | ) | 14,315 | 2,098 | (5,322 | ) | (1,206 | ) | 20,774 | (11,716 | ) | 91,962 | ||||||||||||||||||||||||||
Income from discontinued operations, net of tax | 13,842 | — | — | — | — | — | (2,549 | ) | (2,549 | ) | (1,120 | ) | 10,173 | |||||||||||||||||||||||||||
Net Income | $ | 96,746 | $ | 14,807 | $ | (3,918 | ) | $ | 14,315 | $ | 2,098 | $ | (5,322 | ) | $ | (3,755 | ) | $ | 18,225 | $ | (12,836 | ) | $ | 102,135 | ||||||||||||||||
Basic weighted-average shares outstanding | 70,577 | 70,577 | ||||||||||||||||||||||||||||||||||||||
Diluted weighted-average shares outstanding | 70,966 | 71,340 | ||||||||||||||||||||||||||||||||||||||
Basic earnings per share | ||||||||||||||||||||||||||||||||||||||||
Income from continuing operations | $ | 1.17 | $ | 1.30 | ||||||||||||||||||||||||||||||||||||
Income from discontinued operations | $ | 0.20 | $ | 0.14 | ||||||||||||||||||||||||||||||||||||
Net income | $ | 1.37 | $ | 1.44 | ||||||||||||||||||||||||||||||||||||
Diluted earnings per share | ||||||||||||||||||||||||||||||||||||||||
Income from continuing operations | $ | 1.17 | $ | 1.29 | ||||||||||||||||||||||||||||||||||||
Income from discontinued operations | $ | 0.20 | $ | 0.14 | ||||||||||||||||||||||||||||||||||||
Net income | $ | 1.37 | $ | 1.43 |
December 31, 2006 | ||||||||||||
As Reported | Adjustments | As Restated | ||||||||||
(In thousands) | ||||||||||||
ASSETS | ||||||||||||
Current assets | ||||||||||||
Cash and cash equivalents | $ | 253,814 | $ | 154 | $ | 253,968 | ||||||
Short-term investments | 99,571 | — | 99,571 | |||||||||
Trade receivables, less allowances of $32,104 | 610,893 | 7,422 | 618,315 | |||||||||
Inventories | 442,804 | 76,195 | 518,999 | |||||||||
Deferred income taxes | 72,537 | 13,753 | 86,290 | |||||||||
Prepaid expenses | 37,019 | (2,531 | ) | 34,488 | ||||||||
Other current assets | 79,043 | 3,561 | 82,604 | |||||||||
Total Current Assets | 1,595,681 | 98,554 | 1,694,235 | |||||||||
Securities and other investments | 70,088 | (290 | ) | 69,798 | ||||||||
Property, plant and equipment at cost | 556,849 | (6,352 | ) | 550,497 | ||||||||
Less accumulated depreciation and amortization | 339,961 | 2,448 | 342,409 | |||||||||
Property, plant and equipment, net | 216,888 | (8,800 | ) | 208,088 | ||||||||
Goodwill | 460,339 | (985 | ) | 459,354 | ||||||||
Other assets | 171,283 | (6,098 | ) | 165,185 | ||||||||
�� | ||||||||||||
Total Assets | $ | 2,514,279 | $ | 82,381 | $ | 2,596,660 | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
Current liabilities | ||||||||||||
Notes payable | $ | 11,324 | $ | — | $ | 11,324 | ||||||
Accounts payable | 158,388 | (2,082 | ) | 156,306 | ||||||||
Deferred revenue | 170,921 | 197,796 | 368,717 | |||||||||
Payroll and benefits liabilities | 53,671 | (530 | ) | 53,141 | ||||||||
Other current liabilities | 204,432 | (11,890 | ) | 192,542 | ||||||||
Total Current Liabilities | 598,736 | 183,294 | 782,030 | |||||||||
Notes payable — long term | 665,481 | — | 665,481 | |||||||||
Pensions and other benefits | 41,142 | — | 41,142 | |||||||||
Postretirement and other benefits | 32,942 | (467 | ) | 32,475 | ||||||||
Deferred income taxes | 28,412 | (2,007 | ) | 26,405 | ||||||||
Other long-term liabilities | 28,814 | — | 28,814 | |||||||||
Minority interest | 27,351 | (5,471 | ) | 21,880 | ||||||||
Shareholders’ equity | ||||||||||||
Preferred shares, no par value, authorized 1,000,000 shares, none issued | — | — | — | |||||||||
Common shares, authorized 125,000,000 shares, issued 75,145,662 shares, outstanding 65,595,596 shares | 93,932 | — | 93,932 | |||||||||
Additional capital | 235,229 | 13 | 235,242 | |||||||||
Retained earnings | 1,169,607 | (109,882 | ) | 1,059,725 | ||||||||
Treasury shares, at cost (9,550,066 shares) | (403,098 | ) | — | (403,098 | ) | |||||||
Accumulated other comprehensive income (loss) | (4,269 | ) | 16,901 | 12,632 | ||||||||
Total shareholders’ equity | 1,091,401 | (92,968 | ) | 998,433 | ||||||||
Total liabilities and shareholders’ equity | $ | 2,514,279 | $ | 82,381 | $ | 2,596,660 | ||||||
Year ended December 31, | ||||||||||||||||
2006 | 2005 | |||||||||||||||
(As Reported) | (As Restated) | (As Reported) | (As Restated) | |||||||||||||
(In thousands) | ||||||||||||||||
Net cash provided by (used in): | ||||||||||||||||
Net income | $ | 86,547 | $ | 104,552 | $ | 96,746 | $ | 102,135 | ||||||||
Non-cash adjustments | 75,625 | 89,556 | 53,287 | 73,306 | ||||||||||||
Changes in working capital | 16,522 | 24,695 | (87,878 | ) | (71,813 | ) | ||||||||||
Changes in noncurrent assets and liabilities | 71,730 | 14,123 | 40,559 | (21,869 | ) | |||||||||||
Operating activities | 250,424 | 232,926 | 102,714 | 81,759 | ||||||||||||
Investing activities | (182,080 | ) | (171,324 | ) | (106,262 | ) | (84,209 | ) | ||||||||
Financing activities | (24,062 | ) | (23,774 | ) | 27,220 | 26,382 | ||||||||||
Effect of exchange rate changes on cash and cash equivalents | 1,632 | 5,747 | 183 | 115 | ||||||||||||
Net increase in cash and cash equivalents | 45,914 | 43,575 | 23,855 | 24,047 | ||||||||||||
Cash and cash equivalents at the beginning of year | 207,900 | 210,393 | 184,045 | 186,346 | ||||||||||||
Cash and cash equivalents at the end of the year | $ | 253,814 | $ | 253,968 | $ | 207,900 | $ | 210,393 | ||||||||
Year ended December 31, | ||||||||||||||||
2006 | 2005 | |||||||||||||||
(As Reported) | (As Restated) | (As Reported) | (As Restated) | |||||||||||||
(In thousands) | ||||||||||||||||
Comprehensive income: | ||||||||||||||||
Net income | $ | 86,547 | $ | 104,552 | $ | 96,746 | $ | 102,135 | ||||||||
Foreign currency translation adjustments (and hedging activity) | 56,168 | 52,674 | (16,053 | ) | (5,703 | ) | ||||||||||
Pension adjustments | (1,348 | ) | (637 | ) | 3,354 | 3,354 | ||||||||||
Comprehensive income | $ | 141,367 | $ | 156,589 | $ | 84,047 | $ | 99,786 | ||||||||
Years Beginning January 1, | |||||||||
2006 | 2005 | ||||||||
Beginning retained earnings as reported | $ | 1,140,468 | $ | 1,101,492 | |||||
Revenue Recognition — Bill & Hold | (67,151 | ) | (81,957 | ) | |||||
Revenue Recognition — Other | (11,201 | ) | (7,285 | ) | |||||
Account Reconciliations | (62,806 | ) | (77,122 | ) | |||||
Inventory | (9,953 | ) | (12,051 | ) | |||||
Capitalization | (18,232 | ) | (12,911 | ) | |||||
Other | (1,384 | ) | 2,371 | ||||||
Tax | 44,176 | 57,012 | |||||||
Dividends declared and paid adjustments | (780 | ) | (353 | ) | |||||
Cumulative adjustments to beginning retained earnings | (127,331 | ) | (132,295 | ) | |||||
Beginning retained earnings as restated | $ | 1,013,137 | $ | 969,196 | |||||
December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Numerator: | ||||||||||||
Income used in basic and diluted earnings per share: | ||||||||||||
Income from continuing operations — net of tax | $ | 101,537 | $ | 44,941 | $ | 108,922 | ||||||
Loss from discontinued operations — net of tax | (12,954 | ) | (5,400 | ) | (4,370 | ) | ||||||
Net income | $ | 88,583 | $ | 39,541 | $ | 104,552 | ||||||
Denominator: | ||||||||||||
Weighted-average number of common shares used in basic earnings per share | 66,081 | 65,841 | 66,669 | |||||||||
Effect of dilutive shares | 411 | 832 | 584 | |||||||||
Weighted-average number of common shares and dilutive potential common shares used in diluted earnings per share | 66,492 | 66,673 | 67,253 | |||||||||
Basic earnings per share: | ||||||||||||
Income from continuing operations — net of tax | $ | 1.54 | $ | 0.68 | $ | 1.63 | ||||||
Loss from discontinued operations — net of tax | (0.20 | ) | (0.08 | ) | (0.06 | ) | ||||||
Net income | $ | 1.34 | $ | 0.60 | $ | 1.57 | ||||||
Diluted earnings per share: | ||||||||||||
Income from continuing operations — net of tax | $ | 1.52 | $ | 0.67 | $ | 1.62 | ||||||
Loss from discontinued operations — net of tax | (0.19 | ) | (0.08 | ) | (0.07 | ) | ||||||
Net income | $ | 1.33 | $ | 0.59 | $ | 1.55 | ||||||
Anti-dilutive shares not used in calculating diluted weighted-average shares | 2,469 | 1,141 | 976 |
NOTE 3: |
December 31, | ||||||||
2007 | 2006 | |||||||
(as restated) | ||||||||
Cash surrender value of insurance contracts | $ | 61,171 | $ | 57,510 | ||||
Rabbi Trust and other | 14,056 | 12,288 | ||||||
Certificates of deposit | 104,976 | 99,571 | ||||||
Total securities and other investments | $ | 180,203 | $ | 169,369 | ||||
December 31, | ||||||||
2007 | 2006 | |||||||
(As Restated) | ||||||||
Finished Goods | $ | 252,729 | $ | 242,864 | ||||
Service Parts | 152,039 | 139,720 | ||||||
Work in Process | 64,414 | 94,125 | ||||||
Raw Materials | 64,437 | 42,290 | ||||||
Total Inventory | $ | 533,619 | $ | 518,999 | ||||
Estimated | December 31, | |||||||||
Useful Life | 2007 | 2006 | ||||||||
(As Restated) | ||||||||||
Land and Land Improvements | 0-15 years | $ | 6,230 | $ | 6,862 | |||||
Buildings and Building Equipment | 15 years | 57,809 | 70,810 | |||||||
Machinery, Tools and Equipment | 5-12 years | 103,359 | 99,750 | |||||||
Leasehold Improvements | 10 years | 19,201 | 16,467 | |||||||
Computer Equipment | 3 years | 87,984 | 65,205 | |||||||
Computer Software | 5-10 years | 120,485 | 129,343 | |||||||
Furniture and Fixtures | 8 years | 90,555 | 84,425 | |||||||
Tooling | 3-5 years | 73,320 | 67,661 | |||||||
Construction in Progress | 16,853 | 9,974 | ||||||||
Total property plant and equipment | 575,796 | 550,497 | ||||||||
Less accumulated depreciation and amoritization | 355,740 | 342,409 | ||||||||
Total property plant and equipment, net | $ | 220,056 | $ | 208,088 | ||||||
December 31, | ||||||||
2007 | 2006 | |||||||
(As Restated) | ||||||||
Total minimum lease receivable | $ | 40,157 | $ | 31,542 | ||||
Estimated unguaranteed residual values | 2,594 | 2,142 | ||||||
42,751 | 33,684 | |||||||
Less: | ||||||||
Unearned interest income | (3,406 | ) | (2,145 | ) | ||||
Unearned residuals | (649 | ) | (414 | ) | ||||
(4,055 | ) | (2,559 | ) | |||||
Total(1) | $ | 38,696 | $ | 31,125 | ||||
Sales | ||||
Type Leases | ||||
2008 | $ | 15,025 | ||
2009 | 15,117 | |||
2010 | 4,584 | |||
2011 | 3,397 | |||
2012 | 1,709 | |||
Thereafter | 325 | |||
$ | 40,157 | |||
December 31, | ||||||||
2007 | 2006 | |||||||
Notes payable — current: | ||||||||
Foreign currency loans(1) | $ | 7,473 | $ | 7,263 | ||||
U.S. dollar loans | 7,334 | 4,061 | ||||||
$ | 14,807 | $ | 11,324 | |||||
Notes payable — long term: | ||||||||
Euro loans(2) | $ | 99,264 | $ | 120,481 | ||||
U.S. dollar loans | 510,000 | 545,000 | ||||||
$ | 609,264 | $ | 665,481 | |||||
Total notes payable | $ | 624,071 | $ | 676,805 | ||||
December 31, | ||||||||
2007 | 2006 | |||||||
Industrial Development Revenue Bond due January 1, 2017 | $ | 4,400 | $ | 4,400 | ||||
Industrial Development Revenue Bond due June 1, 2017 | 7,500 | 7,500 | ||||||
Long-term bonds payable | $ | 11,900 | $ | 11,900 | ||||
December 31, | December 31, | |||||||||||||||||||||||
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | |||||||||||||||||||
Expected life (in years) | 6 | 3-6 | 4-6 | 5-7 | 6 | 3-6 | ||||||||||||||||||
Weighted-average volatility | 28 | % | 33 | % | 30 | % | 27 | % | 28 | % | 33 | % | ||||||||||||
Risk-free interest rate | 3.64 - 4.72 | % | 4.55 - 5.11 | % | 3.54 - 4.46 | % | 2.71 – 3.14 | % | 3.64 – 4.72 | % | 4.55 – 5.11 | % | ||||||||||||
Expected dividend yield | 1.63 | % | 1.58 - 1.63 | % | 1.59 - 1.63 | % | 1.97 – 1.86 | % | 1.63 | % | 1.58 – 1.63 | % |
2005 | ||||
(As Restated) | ||||
Net income | $ | 102,135 | ||
Add: Share-based compensation programs recorded as expense, net of tax | (2,681 | ) | ||
Deduct: Total share-based employee compensation expense determined under fair value based method for all awards, net of tax | 3,596 | |||
Pro forma net income (1) | $ | 95,858 | ||
Earnings per share: | ||||
Basic — as reported | $ | 1.45 | ||
Basic — pro forma | $ | 1.36 | ||
Diluted — as reported | $ | 1.43 | ||
Diluted — pro forma | $ | 1.34 |
December 31, | ||||||||||||||||||||||||
2007 | 2006 | 2005 | December 31, | |||||||||||||||||||||
2008 | 2007 | 2006 | ||||||||||||||||||||||
(As Restated) | (As Restated) | |||||||||||||||||||||||
Stock Options: | ||||||||||||||||||||||||
Pre-tax compensation expense | $ | 4,908 | $ | 7,242 | $ | — | $ | 3,371 | $ | 4,908 | $ | 7,242 | ||||||||||||
Tax benefit | (1,816 | ) | (2,680 | ) | — | (1,247 | ) | (1,816 | ) | (2,680 | ) | |||||||||||||
Stock option expense, net of tax | 3,092 | 4,562 | — | $ | 2,124 | $ | 3,092 | $ | 4,562 | |||||||||||||||
RSUs: | ||||||||||||||||||||||||
Pre-tax compensation expense | $ | 3,827 | $ | 5,075 | $ | 2,121 | $ | 3,683 | $ | 3,827 | $ | 5,075 | ||||||||||||
Tax benefit | (1,416 | ) | (1,878 | ) | (785 | ) | (1,363 | ) | (1,416 | ) | (1,878 | ) | ||||||||||||
RSU expense, net of tax | 2,411 | 3,197 | 1,336 | $ | 2,320 | $ | 2,411 | $ | 3,197 | |||||||||||||||
Restricted Shares: | ||||||||||||||||||||||||
Pre-tax compensation expense | $ | 93 | $ | 188 | $ | 199 | $ | 7 | $ | 93 | $ | 188 | ||||||||||||
Tax benefit | (34 | ) | (70 | ) | (74 | ) | (3 | ) | (34 | ) | (70 | ) | ||||||||||||
Restricted share expense, net of tax | 59 | 118 | 125 | $ | 4 | $ | 59 | $ | 118 | |||||||||||||||
Performance Shares: | ||||||||||||||||||||||||
Pre-tax compensation expense | $ | 4,383 | $ | 4,690 | $ | (6,574 | ) | $ | 4,267 | $ | 4,383 | $ | 4,690 | |||||||||||
Tax (benefit) expense | (1,622 | ) | (1,735 | ) | 2,432 | |||||||||||||||||||
Tax benefit | (1,579 | ) | (1,622 | ) | (1,735 | ) | ||||||||||||||||||
Performance share expense, net of tax | 2,761 | 2,955 | (4,142 | ) | $ | 2,688 | $ | 2,761 | $ | 2,955 | ||||||||||||||
Deferred Shares: | ||||||||||||||||||||||||
Pre-tax compensation expense | $ | 571 | $ | — | $ | — | $ | 861 | $ | 571 | $ | — | ||||||||||||
Tax (benefit) expense | (211 | ) | — | — | ||||||||||||||||||||
Tax benefit | (319 | ) | (211 | ) | — | |||||||||||||||||||
Deferred share expense, net of tax | 360 | — | — | $ | 542 | $ | 360 | $ | — | |||||||||||||||
Total Share-Based Compensation: | ||||||||||||||||||||||||
Pre-tax compensation expense | $ | 13,782 | $ | 17,195 | $ | (4,254 | ) | $ | 12,189 | $ | 13,782 | $ | 17,195 | |||||||||||
Tax benefit | (5,099 | ) | (6,363 | ) | 1,573 | (4,511 | ) | (5,099 | ) | (6,363 | ) | |||||||||||||
Total share-based compensation, net of tax | $ | 8,683 | $ | 10,832 | $ | (2,681 | ) | $ | 7,678 | $ | 8,683 | $ | 10,832 | |||||||||||
Weighted- | Weighted-Average | |||||||||||||||||||||||||||||||
Average | Weighted-Average | Remaining | Aggregate Intrinsic | |||||||||||||||||||||||||||||
Weighted- | Remaining | Aggregate | Number of Shares | Exercise Price | Contractual Term | Value(1) | ||||||||||||||||||||||||||
Number of | Average | Contractual | Intrinsic | (per share) | (in years) | |||||||||||||||||||||||||||
Outstanding at January 1, 2008 | 2,884 | $ | 41.56 | |||||||||||||||||||||||||||||
Options expired or forfeited | (291 | ) | $ | 44.47 | ||||||||||||||||||||||||||||
Options exercised | — | — | ||||||||||||||||||||||||||||||
Options granted | 336 | $ | 25.53 | |||||||||||||||||||||||||||||
Shares | Exercise Price | Term | Value(1) | |||||||||||||||||||||||||||||
Outstanding at December 31, 2008 | 2,929 | $ | 39.43 | 5 | $ | 1,344 | ||||||||||||||||||||||||||
Options exercisable at December 31, 2008 | 2,166 | $ | 40.60 | 4 | $ | 498 | ||||||||||||||||||||||||||
(In thousands) | (Per share) | (In years) | (In thousands) | |||||||||||||||||||||||||||||
Outstanding at January 1, 2007 | 2,945 | $ | 40.70 | |||||||||||||||||||||||||||||
Options granted | 263 | 46.19 | ||||||||||||||||||||||||||||||
Options exercised | (241 | ) | 35.46 | |||||||||||||||||||||||||||||
Options expired or forfeited | (83 | ) | 43.42 | |||||||||||||||||||||||||||||
Outstanding at December 31, 2007 | 2,884 | $ | 41.56 | 5 | $ | 650 | ||||||||||||||||||||||||||
Options exercisable at December 31, 2007 | 2,142 | $ | 40.51 | 4 | $ | 650 | ||||||||||||||||||||||||||
(1) | The aggregate intrinsic value represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on the last trading day of the year in |
Weighted-Average | ||||||||
Grant-Date Fair | ||||||||
Restricted Stock Units (RSUs): | Number of Shares | Value | ||||||
(In thousands) | (Per share) | |||||||
Unvested at January 1, 2007 | 308 | $ | 45.12 | |||||
Forfeited | (40 | ) | 48.66 | |||||
Vested | (85 | ) | 46.80 | |||||
Granted | 142 | 47.17 | ||||||
Unvested at December 31, 2007 | 325 | $ | 45.14 | |||||
Weighted-Average | ||||||||
Grant-Date Fair | ||||||||
RSUs: | Number of Shares | Value | ||||||
(per share) | ||||||||
Unvested at January 1, 2008 | 325 | $ | 45.14 | |||||
Forfeited | (22 | ) | 40.61 | |||||
Vested | (48 | ) | 54.55 | |||||
Granted | 134 | 28.13 | ||||||
Unvested at December 31, 2008 | 389 | $ | 38.36 | |||||
Weighted-Average | ||||||||
Grant-Date Fair | ||||||||
Performance Shares: | Number of Shares | Value | ||||||
(In thousands) | (Per share) | |||||||
Unvested at January 1, 2007 | 556 | $ | 51.72 | |||||
Granted | 205 | 58.65 | ||||||
Forfeited | (192 | ) | 52.05 | |||||
Vested | (50 | ) | 50.22 | |||||
Unvested at December 31, 2007 | 519 | $ | 54.49 | |||||
Weighted-Average | ||||||||
Grant-Date Fair | ||||||||
Performance Shares: | Number of Shares | Value | ||||||
(per share) | ||||||||
Unvested at January 1, 2008 | 519 | $ | 54.49 | |||||
Forfeited | (131 | ) | 55.89 | |||||
Vested | (15 | ) | 57.08 | |||||
Granted | 232 | 28.91 | ||||||
Unvested at December 31, 2008 | 605 | $ | 44.31 | |||||
Year Ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Domestic | $ | (4,837 | ) | $ | (21,415 | ) | $ | 50,808 | ||||
Foreign | 143,799 | 102,153 | 111,030 | |||||||||
Total | $ | 138,962 | $ | 80,738 | $ | 161,838 | ||||||
December 31, | ||||||||||||
2007 | 2006 | 2005 | ||||||||||
(As Restated) | (As Restated) | |||||||||||
Numerator: | ||||||||||||
Income used in basic and diluted earnings per share: | ||||||||||||
Income from continuing operations — net of tax | $ | 39,541 | $ | 104,552 | $ | 91,962 | ||||||
Income from discontinued operations — net of tax | — | — | 10,173 | |||||||||
Net income | $ | 39,541 | $ | 104,552 | $ | 102,135 | ||||||
Denominator: | ||||||||||||
Weighted-average number of common shares used in basic earnings per share | 65,841 | 66,669 | 70,577 | |||||||||
Effect of dilutive shares | 832 | 584 | (1) | 763 | (1) | |||||||
Weighted-average number of common shares and dilutive potential common shares used in diluted earnings per share | 66,673 | 67,253 | 71,340 | |||||||||
Basic earnings per share: | ||||||||||||
Income from continuing operations — net of tax | $ | 0.60 | $ | 1.57 | $ | 1.30 | ||||||
Income from discontinued operations — net of tax | — | — | 0.15 | |||||||||
Net income | $ | 0.60 | $ | 1.57 | $ | 1.45 | ||||||
Diluted earnings per share: | ||||||||||||
Income from continuing operations — net of tax | $ | 0.59 | $ | 1.55 | $ | 1.29 | ||||||
Income from discontinued operations — net of tax | — | — | 0.14 | |||||||||
Net income | $ | 0.59 | $ | 1.55 | $ | 1.43 | ||||||
Anti-dilutive shares not used in calculating diluted weighted-average shares | 1,106 | 976 | 977 |
Year Ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Current: | ||||||||||||
U.S. Federal | $ | 21,073 | $ | 8,021 | $ | 14,886 | ||||||
Foreign | 38,441 | 30,862 | 33,863 | |||||||||
State and local | 4,560 | 1,527 | 5,623 | |||||||||
Total current | $ | 64,074 | $ | 40,410 | $ | 54,372 | ||||||
Deferred: | ||||||||||||
U.S. Federal | $ | (27,172 | ) | $ | (9,500 | ) | $ | (75 | ) | |||
Foreign | 45 | 2,298 | (671 | ) | ||||||||
State and local | 478 | 2,589 | (710 | ) | ||||||||
Total deferred | $ | (26,649 | ) | $ | (4,613 | ) | $ | (1,456 | ) | |||
Total income tax expense | $ | 37,425 | $ | 35,797 | $ | 52,916 | ||||||
Year Ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Statutory tax rate | 35.0 | % | 35.0 | % | 35.0 | % | ||||||
State and local income taxes, net of federal tax benefit | 2.3 | 2.4 | 2.3 | |||||||||
Foreign income taxes | (6.9 | ) | 0.9 | (2.4 | ) | |||||||
Accrual adjustments | 4.6 | 0.1 | 0.1 | |||||||||
U.S. taxed foreign income | (4.3 | ) | (4.6 | ) | 1.0 | |||||||
Subsidiary losses | (1.1 | ) | (11.0 | ) | (2.7 | ) | ||||||
Goodwill impairment | — | 20.0 | — | |||||||||
Other | (2.7 | ) | 1.5 | (0.6 | ) | |||||||
Effective tax rate | 26.9 | % | 44.3 | % | 32.7 | % | ||||||
2008 | 2007 | |||||||
Balance at January 1 | $ | 10,714 | $ | 9,020 | ||||
Increases related to prior year tax positions | 531 | — | ||||||
Decreases related to prior year tax positions | (1,381 | ) | (1,231 | ) | ||||
Increases related to current year tax positions | 1,539 | 4,631 | ||||||
Decreases related to current year tax positions | — | — | ||||||
Settlements | (2,368 | ) | (1,706 | ) | ||||
Reduction due to lapse of applicable statute of limitations | (26 | ) | — | |||||
Balance at December 31 | $ | 9,009 | $ | 10,714 | ||||
December 31, | ||||||||
2008 | 2007 | |||||||
Deferred Tax Assets: | ||||||||
Postretirement benefits | $ | 7,799 | $ | 7,663 | ||||
Accrued expenses | 31,303 | 20,352 | ||||||
Warranty accrual | 12,012 | 5,287 | ||||||
Deferred compensation | 16,984 | 17,488 | ||||||
Bad debts | 7,916 | 10,988 | ||||||
Inventory | 18,575 | 14,454 | ||||||
Deferred revenue | 19,144 | 20,974 | ||||||
Pension | 41,935 | (6,533 | ) | |||||
Research and development credit | 3,170 | — | ||||||
Foreign tax credit | 20,550 | 16,299 | ||||||
Net operating loss carryforward | 114,902 | 89,083 | ||||||
State deferred taxes | 12,329 | 6,597 | ||||||
Other | 10,160 | 10,218 | ||||||
316,779 | 212,870 | |||||||
Valuation allowance | (97,188 | ) | (85,429 | ) | ||||
Net deferred tax assets | $ | 219,591 | $ | 127,441 | ||||
Deferred Tax Liabilities: | ||||||||
Property, plant and equipment | 15,287 | 5,615 | ||||||
Goodwill | 47,193 | 55,447 | ||||||
Finance receivables | 6,660 | 6,828 | ||||||
Software capitalized | 4,310 | 3,558 | ||||||
Partnership income | 15,445 | 13,084 | ||||||
Other | 1,219 | 1,859 | ||||||
Net deferred tax liabilities | 90,114 | 86,391 | ||||||
Net deferred tax asset | $ | 129,477 | $ | 41,050 | ||||
December 31, | ||||||||
2008 | 2007 | |||||||
Cash surrender value of insurance contracts | $ | 62,934 | $ | 61,171 | ||||
Rabbi trust | 7,984 | 13,492 | ||||||
Certificates of deposit | 117,026 | 104,976 | ||||||
Other | 4,357 | 564 | ||||||
Total securities and other investments | $ | 192,301 | $ | 180,203 | ||||
December 31, | ||||||||
2008 | 2007 | |||||||
Total minimum lease receivable | $ | 47,885 | $ | 40,157 | ||||
Estimated unguaranteed residual values | 4,558 | 2,594 | ||||||
52,443 | 42,751 | |||||||
Less: | ||||||||
Unearned interest income | (5,164 | ) | (3,406 | ) | ||||
Unearned residuals | (1,133 | ) | (649 | ) | ||||
(6,297 | ) | (4,055 | ) | |||||
Total(1) | $ | 46,146 | $ | 38,696 | ||||
Finance receivables include $7,971 and $11,655 for the years ended December 31, 2008 and 2007, respectively, of receivables owned by Diebold OLTP Systems. The company owns fifty-percent of Diebold OLTP Systems, which is consolidated. |
Sales | ||||
Type Leases | ||||
2009 | $ | 13,257 | ||
2010 | 17,665 | |||
2011 | 8,252 | |||
2012 | 5,761 | |||
2013 | 2,473 | |||
Thereafter | 477 | |||
$ | 47,885 | |||
December 31, | ||||||||
2008 | 2007 | |||||||
Finished goods | $ | 276,439 | $ | 252,729 | ||||
Service parts | 144,742 | 152,039 | ||||||
Work in process | 54,752 | 64,414 | ||||||
Raw materials | 65,038 | 64,437 | ||||||
Total inventories | $ | 540,971 | $ | 533,619 | ||||
Estimated | ||||||||||||
Useful Life | December 31, | |||||||||||
(years) | 2008 | 2007 | ||||||||||
Land and land improvements | 0-15 | $ | 6,178 | $ | 6,230 | |||||||
Buildings and building equipment | 15 | 59,230 | 57,809 | |||||||||
Machinery, tools and equipment | 5-12 | 107,918 | 103,359 | |||||||||
Leasehold improvements | 10 | 20,811 | 19,201 | |||||||||
Computer equipment | 3-5 | 75,869 | 87,984 | |||||||||
Computer software | 5-10 | 150,387 | 137,509 | |||||||||
Furniture and fixtures | 5-8 | 72,486 | 73,531 | |||||||||
Tooling | 3-5 | 76,228 | 73,320 | |||||||||
Construction in progress | 10,844 | 16,853 | ||||||||||
Total property plant and equipment | 579,951 | 575,796 | ||||||||||
Less accumulated depreciation and amortization | 376,357 | 355,740 | ||||||||||
Total property plant and equipment, net | $ | 203,594 | $ | 220,056 | ||||||||
December 31, | ||||||||
2008 | 2007 | |||||||
Notes payable — current: | ||||||||
Revolving foreign currency loans(1) | $ | 8,084 | $ | 7,473 | ||||
Revolving U.S. dollar loans | 2,512 | 7,334 | ||||||
$ | 10,596 | $ | 14,807 | |||||
Notes payable — long term: | ||||||||
Revolving euro loans(2) | $ | 49,588 | $ | 99,264 | ||||
Revolving U.S. dollar loans | 245,000 | 210,000 | ||||||
Senior notes | 300,000 | 300,000 | ||||||
$ | 594,588 | $ | 609,264 | |||||
Total notes payable | $ | 605,184 | $ | 624,071 | ||||
(1) | Indian rupees (INR) 394,519 borrowings translated at the applicable December 31, 2008 spot rate; INR 177,390 borrowing translated at the applicable December 31, 2007 spot rate. | |
(2) | €35,476 borrowing translated at the applicable December 31, 2008 spot rate; €68,045 borrowing translated at the applicable December 31, 2007 spot rate. |
December 31, | |||||||||
2008 | 2007 | ||||||||
Industrial development revenue bond due January 1, 2017 | $ | 4,400 | $ | 4,400 | |||||
Industrial development revenue bond due June 1, 2017 | 7,500 | 7,500 | |||||||
Total long-term bonds payable | $ | 11,900 | $ | 11,900 | |||||
Pension Benefits | Other Benefits | Pension Benefits | Other Benefits | |||||||||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||||||||||||
2007 | 2006 | 2007 | 2006 | 2008 | 2007 | 2008 | 2007 | |||||||||||||||||||||||||
Change in benefit obligation | ||||||||||||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 426,791 | $ | 408,699 | $ | 23,395 | $ | 23,194 | $ | 435,070 | $ | 426,791 | $ | 19,972 | $ | 23,395 | ||||||||||||||||
Service cost | 11,429 | 11,179 | 6 | 8 | 12,335 | 11,429 | 3 | 6 | ||||||||||||||||||||||||
Interest cost | 25,592 | 23,045 | 1,358 | 1,294 | 35,046 | 25,592 | 1,526 | 1,358 | ||||||||||||||||||||||||
Amendments | 276 | 1,627 | — | 924 | — | 276 | — | — | ||||||||||||||||||||||||
Actuarial loss (gain) | (11,674 | ) | (1,278 | ) | (2,531 | ) | 1,310 | 937 | (11,674 | ) | (46 | ) | (2,531 | ) | ||||||||||||||||||
Plan participants’ contributions | — | — | 206 | 192 | — | — | 159 | 206 | ||||||||||||||||||||||||
Benefits paid | (17,011 | ) | (16,594 | ) | (2,462 | ) | (3,453 | ) | (22,185 | ) | (17,011 | ) | (3,278 | ) | (2,462 | ) | ||||||||||||||||
Special termination benefits | — | — | — | (74 | ) | |||||||||||||||||||||||||||
Curtailments | (514 | ) | — | — | — | (39 | ) | (514 | ) | — | — | |||||||||||||||||||||
Other | 181 | 113 | — | — | (33 | ) | 181 | 235 | — | |||||||||||||||||||||||
Benefit obligation at end of year | $ | 435,070 | $ | 426,791 | $ | 19,972 | $ | 23,395 | $ | 461,131 | $ | 435,070 | $ | 18,571 | $ | 19,972 | ||||||||||||||||
Change in plan assets | ||||||||||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 453,085 | $ | 397,766 | $ | — | $ | — | ||||||||||||||||||||||||
Actual return on plan assets | (111,040 | ) | 60,900 | — | — | |||||||||||||||||||||||||||
Employer contributions | 7,473 | 11,430 | 3,119 | 2,256 | ||||||||||||||||||||||||||||
Plan participant contributions | — | — | 159 | 206 | ||||||||||||||||||||||||||||
Benefits paid | (22,185 | ) | (17,011 | ) | (3,278 | ) | (2,462 | ) | ||||||||||||||||||||||||
Fair value of plan assets at end of year | $ | 327,333 | $ | 453,085 | $ | — | $ | — | ||||||||||||||||||||||||
Pension Benefits | Other Benefits | Pension Benefits | Other Benefits | |||||||||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||||||||||||
2007 | 2006 | 2007 | 2006 | 2008 | 2007 | 2008 | 2007 | |||||||||||||||||||||||||
Change in plan assets | ||||||||||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 397,766 | $ | 366,143 | $ | — | $ | — | ||||||||||||||||||||||||
Actual return on plan assets | 60,900 | 32,849 | — | — | ||||||||||||||||||||||||||||
Employer contribution | 11,430 | 15,368 | 2,256 | 3,261 | ||||||||||||||||||||||||||||
Plan participants’ contributions | — | — | 206 | 192 | ||||||||||||||||||||||||||||
Benefits paid | (17,011 | ) | (16,594 | ) | (2,462 | ) | (3,453 | ) | ||||||||||||||||||||||||
Fair value of plan assets at end of year | $ | 453,085 | $ | 397,766 | $ | — | $ | — | ||||||||||||||||||||||||
Funded status | ||||||||||||||||||||||||||||||||
Funded status | $ | 18,015 | $ | (29,025 | ) | $ | (19,972 | ) | $ | (23,395 | ) | $ | (133,798 | ) | $ | 18,015 | $ | (18,571 | ) | $ | (19,972 | ) | ||||||||||
Unrecognized net actuarial loss (gain) | 12,739 | 56,406 | 6,375 | (4,164 | ) | |||||||||||||||||||||||||||
Unrecognized net actuarial loss | 168,246 | 12,739 | 5,779 | 6,375 | ||||||||||||||||||||||||||||
Unrecognized prior service cost (benefit) | 2,433 | 2,795 | (3,647 | ) | 9,638 | 1,915 | 2,433 | (3,001 | ) | (3,647 | ) | |||||||||||||||||||||
Prepaid (accrued) pension cost | $ | 33,187 | $ | 30,176 | $ | (17,244 | ) | $ | (17,921 | ) | $ | 36,363 | $ | 33,187 | $ | (15,793 | ) | $ | (17,244 | ) | ||||||||||||
Amounts recognized in Balance Sheets | ||||||||||||||||||||||||||||||||
Noncurrent assets | $ | 57,917 | $ | 14,369 | $ | — | $ | — | $ | — | $ | 57,917 | $ | — | $ | — | ||||||||||||||||
Current liabilities | (2,690 | ) | (2,736 | ) | (2,191 | ) | (2,368 | ) | (2,725 | ) | (2,690 | ) | (1,931 | ) | (2,191 | ) | ||||||||||||||||
Noncurrent liabilities(1) | (37,212 | ) | (40,658 | ) | (17,781 | ) | (21,027 | ) | (131,073 | ) | (37,212 | ) | (16,640 | ) | (17,781 | ) | ||||||||||||||||
Accumulated other comprehensive income | 15,172 | 59,201 | 2,728 | 5,474 | 170,161 | 15,172 | 2,778 | 2,728 | ||||||||||||||||||||||||
Net amount recognized | $ | 33,187 | $ | 30,176 | $ | (17,244 | ) | $ | (17,921 | ) | $ | 36,363 | $ | 33,187 | $ | (15,793 | ) | $ | (17,244 | ) | ||||||||||||
(1) | Included in the Consolidated Balance Sheets in Pensions and other benefits and Postretirement and other benefits are international |
Pension Benefits | Other Benefits | Pension Benefits | Other Benefits | |||||||||||||||||||||||||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||||||||||||||||||||||||||||
2007 | 2006 | 2005(2) | 2007 | 2006 | 2005(2) | 2008 | 2007 | 2006 | 2008 | 2007 | 2006 | |||||||||||||||||||||||||||||||||||||
Components of net periodic benefit cost | ||||||||||||||||||||||||||||||||||||||||||||||||
Service cost | $ | 11,429 | $ | 11,179 | $ | 12,374 | $ | 6 | $ | 8 | $ | 3 | $ | 9,839 | $ | 11,429 | $ | 11,179 | $ | 2 | $ | 6 | $ | 8 | ||||||||||||||||||||||||
Interest cost | 25,592 | 23,045 | 22,266 | 1,358 | 1,294 | 1,255 | 28,046 | 25,592 | 23,045 | 1,221 | 1,358 | 1,294 | ||||||||||||||||||||||||||||||||||||
Expected return on plan assets | (33,008 | ) | (30,995 | ) | (28,956 | ) | — | — | — | (35,747 | ) | (33,008 | ) | (30,995 | ) | — | — | — | ||||||||||||||||||||||||||||||
Amortization of prior service cost(1) | 614 | 765 | 1,119 | (516 | ) | (532 | ) | (613 | ) | 381 | 614 | 765 | (517 | ) | (516 | ) | (532 | ) | ||||||||||||||||||||||||||||||
Amortization of initial transition asset | — | — | (658 | ) | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Recognized net actuarial loss | 4,033 | 4,552 | 2,331 | 731 | 792 | 528 | 804 | 4,033 | 4,552 | 432 | 731 | 792 | ||||||||||||||||||||||||||||||||||||
Special termination benefits | — | — | 6,060 | — | (74 | ) | — | — | — | — | — | — | (74 | ) | ||||||||||||||||||||||||||||||||||
Curtailment loss | (489 | ) | — | 1,094 | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Settlement gain | — | — | (165 | ) | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Curtailment gain | (52 | ) | (489 | ) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
�� | ||||||||||||||||||||||||||||||||||||||||||||||||
Net periodic pension benefit cost | $ | 8,171 | $ | 8,546 | $ | 15,465 | $ | 1,579 | $ | 1,488 | $ | 1,173 | $ | 3,271 | $ | 8,171 | $ | 8,546 | $ | 1,138 | $ | 1,579 | $ | 1,488 | ||||||||||||||||||||||||
(1) | The annual amortization of | |
December 31, | December 31, | |||||||||||||||||
2007 | 2006 | 2008 | 2007 | |||||||||||||||
Projected benefit obligation | $ | 39,901 | $ | 61,664 | $ | 461,131 | $ | 39,901 | ||||||||||
Accumulated benefit obligation | $ | 37,562 | $ | 59,053 | 415,648 | 37,562 | ||||||||||||
Fair value of plan assets | $ | — | $ | 18,269 | 327,333 | — |
Pension Benefits | Other Benefits | Pension Benefits | Other Benefits | |||||||||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||||||||||||
2007 | 2006 | 2007 | 2006 | 2008 | 2007 | 2008 | 2007 | |||||||||||||||||||||||||
Assumptions | ||||||||||||||||||||||||||||||||
Discount rate | 6.50 | % | 6.13 | % | 6.50 | % | 6.13 | % | 6.41 | % | 6.50 | % | 6.41 | % | 6.50 | % | ||||||||||||||||
Rate of compensation increase | 3.50 | % | 3.00 | % | 3.25 | % | 3.50 | % |
Pension Benefits | Other Benefits | Pension Benefits | Other Benefits | |||||||||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||||||||||||
2007 | 2006 | 2007 | 2006 | 2008 | 2007 | 2008 | 2007 | |||||||||||||||||||||||||
Assumptions | ||||||||||||||||||||||||||||||||
Discount rate | 6.13 | % | 5.75 | % | 6.13 | % | 5.75 | % | 6.63 | % | 6.13 | % | 6.63 | % | 6.13 | % | ||||||||||||||||
Expected long-term return on plan assets | 8.75 | % | 8.75 | % | 8.50 | % | 8.75 | % | ||||||||||||||||||||||||
Rate of compensation increase | 3.00 | % | 3.00 | % | 3.50 | % | 3.00 | % |
December 31, | ||||||||
2007 | 2006 | |||||||
Healthcare cost trend rate assumed for next year | 7.57 | % | 8.00 | % | ||||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 5.00 | % | 5.00 | % | ||||
Year that rate reaches ultimate trend rate | 2014 | 2014 |
December 31, | ||||||||
2008 | 2007 | |||||||
Healthcare cost trend rate assumed for next year | 9.00 | % | 7.57 | % | ||||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 4.20 | % | 5.00 | % | ||||
Year that rate reaches ultimate trend rate | 2099 | 2014 |
One-Percentage- | One-Percentage- | One-Percentage- | One-Percentage- | |||||||||||||
Point Increase | Point Decrease | Point Increase | Point Decrease | |||||||||||||
Effect on total of service and interest cost | $ | 92 | $ | (83 | ) | $ | 80 | $ | (72 | ) | ||||||
Effect on postretirement benefit obligation | $ | 1,202 | $ | (1,083 | ) | $ | 1,118 | $ | (1,009 | ) |
Target | Percentage of Pension | Target | Percentage of Pension Plan, | |||||||||||||||||||||
Allocation | Plan Assets at December 31, | Allocation | Assets at December 31, | |||||||||||||||||||||
Asset Category | 2008 | 2007 | 2006 | 2009 | 2008 | 2007 | ||||||||||||||||||
Equity securities | 50 | % | 62 | % | 69 | % | 50 | % | 50 | % | 62 | % | ||||||||||||
Debt securities | 40 | % | 32 | % | 30 | % | 35 | % | 40 | % | 32 | % | ||||||||||||
Real estate | 5 | % | 0 | % | 0 | % | ||||||||||||||||||
Other | 10 | % | 6 | % | 1 | % | 10 | % | 10 | % | 6 | % | ||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||
Pension | Other | Pension | Other | |||||||||||||
Benefits | Benefits | Benefits | Benefits | |||||||||||||
Amount of net transition obligation/(asset) | $ | — | $ | — | ||||||||||||
Amount of net prior service cost/(credit) | $ | 420 | $ | (516 | ) | $ | 271 | $ | (517 | ) | ||||||
Amount of net loss | $ | 1,512 | $ | 472 | 3,345 | 442 |
Other Benefits | Other Benefits | |||||||||||||||||||||||
Before | Other Benefits | before | Other Benefits | |||||||||||||||||||||
Pension | Medicare | After Medicare | Pension | Medicare | after Medicare | |||||||||||||||||||
Benefit Payments | Benefits | Part D Subsidy | Part D Subsidy | Benefits | Part D Subsidy | Part D Subsidy | ||||||||||||||||||
2008 | $ | 18,225 | $ | 2,518 | $ | 2,262 | ||||||||||||||||||
2009 | 19,264 | 2,321 | 2,054 | $ | 18,861 | $ | 2,251 | $ | 1,993 | |||||||||||||||
2010 | 20,493 | 2,269 | 1,994 | 20,169 | 2,199 | 1,936 | ||||||||||||||||||
2011 | 21,900 | 2,257 | 1,982 | 21,556 | 2,193 | 1,934 | ||||||||||||||||||
2012 | 23,545 | 2,217 | 1,943 | 23,467 | 2,146 | 1,890 | ||||||||||||||||||
2013 — 2017 | 145,951 | 9,946 | 8,738 | |||||||||||||||||||||
2013 | 25,244 | 2,091 | 1,842 | |||||||||||||||||||||
2014 — 2018 | 156,353 | 9,240 | 8,170 |
Year | Total | Real Estate | Equipment | |||||||||
2008 | $ | 75,834 | $ | 28,292 | $ | 47,542 | ||||||
2009 | 64,714 | 24,672 | 40,042 | |||||||||
2010 | 41,984 | 20,343 | 21,641 | |||||||||
2011 | 26,918 | 17,839 | 9,079 | |||||||||
2012 | 18,840 | 15,575 | 3,265 | |||||||||
Thereafter | 26,287 | 25,578 | 709 | |||||||||
$ | 254,577 | $ | 132,299 | $ | 122,278 | |||||||
Year | Total | Real Estate | Equipment | |||||||||
2009 | $ | 66,058 | $ | 24,465 | $ | 41,593 | ||||||
2010 | 52,050 | 21,416 | 30,634 | |||||||||
2011 | 37,629 | 17,665 | 19,964 | |||||||||
2012 | 23,261 | 14,478 | 8,783 | |||||||||
2013 | 14,939 | 12,443 | 2,496 | |||||||||
Thereafter | 24,645 | 24,645 | — | |||||||||
$ | 218,582 | $ | 115,112 | $ | 103,470 | |||||||
NOTE 13: GUARANTEES AND PRODUCT WARRANTIES |
Year ended December 31, | ||||||||||||
2007 | 2006 | 2005 | ||||||||||
(As Restated) | (As Restated) | |||||||||||
Domestic | $ | (1,903 | ) | $ | 50,808 | $ | 129,965 | |||||
Foreign | 77,241 | 106,660 | 30,952 | |||||||||
Total | $ | 75,338 | $ | 157,468 | $ | 160,917 | ||||||
Year ended December 31, | ||||||||||||
2007 | 2006 | 2005 | ||||||||||
(As Restated) | (As Restated) | |||||||||||
Current: | ||||||||||||
U.S. Federal | $ | 8,021 | $ | 14,886 | $ | 21,819 | ||||||
Foreign | 30,862 | 33,863 | 24,765 | |||||||||
State and local | 1,527 | 5,623 | 4,485 | |||||||||
Total current | $ | 40,410 | $ | 54,372 | $ | 51,069 | ||||||
Deferred: | ||||||||||||
U.S. Federal | $ | (9,500 | ) | $ | (75 | ) | $ | 12,861 | ||||
Foreign | 2,298 | (671 | ) | 1,539 | ||||||||
State and local | 2,589 | (710 | ) | 3,486 | ||||||||
Total deferred | $ | (4,613 | ) | $ | (1,456 | ) | $ | 17,886 | ||||
Total income tax expense | $ | 35,797 | $ | 52,916 | $ | 68,955 | ||||||
Year ended December 31, | |||||||||||||
2007 | 2006 | 2005 | |||||||||||
(As Restated) | (As Restated) | ||||||||||||
Statutory tax rate | 35.0 | % | 35.0 | % | 35.0 | % | |||||||
State and local income taxes, net of federal tax benefit | 2.5 | 2.3 | 3.4 | ||||||||||
Foreign income taxes | 3.5 | (1.5 | ) | 10.2 | |||||||||
Accrual adjustments | 0.1 | 0.1 | 2.5 | ||||||||||
U.S. taxed foreign income | (4.9 | ) | 1.1 | (1.7 | ) | ||||||||
Subsidiary losses | (11.8 | ) | (2.8 | ) | — | ||||||||
Goodwill Impairment | 21.5 | — | — | ||||||||||
Other | 1.6 | (0.6 | ) | (6.5 | ) | ||||||||
Effective tax rate | 47.5 | % | 33.6 | % | 42.9 | % | |||||||
Balance at January 1, 2007 | $ | 9.020 | ||
Increases related to prior year tax positions | — | |||
Decreases related to prior year tax positions | (1,231 | ) | ||
Increases related to current year tax positions | 4,631 | |||
Decreases related to current year tax positions | — | |||
Settlements | (1,706 | ) | ||
Reduction due to lapse of applicable statute of limitations | — | |||
Balance at December 31, 2007 | $ | 10,714 | ||
December 31, | ||||||||
2007 | 2006 | |||||||
(As Restated) | ||||||||
Deferred Tax Assets: | ||||||||
Postretirement benefits | $ | 7,663 | $ | 8,816 | ||||
Accrued expenses | 24,038 | 36,220 | ||||||
Warranty accrual | 2,268 | 1,644 | ||||||
Deferred compensation | 17,488 | 9,404 | ||||||
Bad debts | 10,988 | 6,541 | ||||||
Inventory | 14,665 | 10,013 | ||||||
Deferred revenue | 20,579 | 23,142 | ||||||
Leases | 228 | 1,839 | ||||||
Foreign Tax Credit | 16,299 | (4,563 | ) | |||||
Net operating loss carryforward | 89,083 | 60,076 | ||||||
State deferred taxes | 6,597 | 7,204 | ||||||
Other | 10,951 | 13,947 | ||||||
220,847 | 174,283 | |||||||
Valuation allowance | (85,429 | ) | (53,262 | ) | ||||
Net deferred tax assets | $ | 135,418 | $ | 121,021 | ||||
Deferred Tax Liabilities: | ||||||||
Pension | 6,511 | (8,472 | ) | |||||
Property, plant and equipment | 13,064 | 4,278 | ||||||
Goodwill | 59,279 | 44,590 | ||||||
Finance receivables | — | 6,315 | ||||||
Software capitalized | 5,241 | 2,323 | ||||||
Partnership income | 8,004 | 7,948 | ||||||
Other | 2,269 | 4,154 | ||||||
Net deferred tax liabilities | 94,368 | 61,136 | ||||||
Net deferred tax asset | $ | 41,050 | $ | 59,885 | ||||
December 31, | ||||||||
Warranty liability | 2008 | 2007 | ||||||
Balance at January 1 | $ | 26,494 | $ | 22,511 | ||||
Current period accruals | 49,689 | 33,463 | ||||||
Current period settlements | (33,174 | ) | (29,480 | ) | ||||
Balance at December 31 | $ | 43,009 | $ | 26,494 | ||||
December 31, | ||||||||
Warranty liability | 2007 | 2006 | ||||||
(As Restated) | ||||||||
Balance at January 1 | $ | 22,511 | $ | 20,512 | ||||
Current period accruals | 33,463 | 27,009 | ||||||
Current period settlements | (29,480 | ) | (25,010 | ) | ||||
Balance at December 31 | $ | 26,494 | $ | 22,511 | ||||
DNA | DI | ES & Other | Total | |||||||||||||
2007 | ||||||||||||||||
Customer revenues | $ | 1,543,055 | $ | 1,358,079 | $ | 63,703 | $ | 2,964,837 | ||||||||
Operating profit (loss) | 112,990 | 47,258 | (60,890 | ) | 99,358 | |||||||||||
Capital expenditures | 13,569 | 26,348 | 3,342 | 43,259 | ||||||||||||
Depreciation | 26,612 | 18,015 | 922 | 45,549 | ||||||||||||
Property, plant and equipment, at cost | 415,798 | 147,141 | 12,857 | 575,796 | ||||||||||||
Total assets | 786,912 | 1,751,514 | 92,700 | 2,631,126 | ||||||||||||
2006 (As Restated) | ||||||||||||||||
Customer revenues | $ | 1,519,669 | $ | 1,186,650 | $ | 233,291 | $ | 2,939,610 | ||||||||
Operating profit | 119,786 | 22,221 | 40,224 | 182,231 | ||||||||||||
Capital expenditures | 18,354 | 17,785 | 2,375 | 38,514 | ||||||||||||
Depreciation | 28,634 | 16,256 | 805 | 45,695 | ||||||||||||
Property, plant and equipment, at cost | 398,010 | 147,079 | 5,408 | 550,497 | ||||||||||||
Total assets | 619,500 | 1,773,723 | 203,437 | 2,596,660 | ||||||||||||
2005 (As Restated) | ||||||||||||||||
Customer revenues | $ | 1,457,948 | $ | 969,533 | $ | 155,509 | $ | 2,582,990 | ||||||||
Operating profit (loss) | 172,708 | 18,090 | (8,051 | ) | 182,747 | |||||||||||
Capital expenditures | 30,890 | 14,060 | 1,233 | 46,183 | ||||||||||||
Depreciation | 26,606 | 10,071 | 1,303 | 37,980 | ||||||||||||
Property, plant and equipment, at cost | 421,053 | 119,939 | 5,266 | 546,258 | ||||||||||||
Total assets | 752,058 | 1,466,118 | 190,555 | 2,408,731 |
December 31, | ||||||||||||
2007 | 2006 | 2005 | ||||||||||
(As Restated) | (As Restated) | |||||||||||
Revenue Summary by Geographic Area | ||||||||||||
The Americas | $ | 2,115,292 | $ | 2,187,256 | $ | 1,965,810 | ||||||
Asia Pacific | 337,844 | 290,934 | 266,818 | |||||||||
Europe, Middle East and Africa | 511,701 | 461,420 | 350,362 | |||||||||
Total revenue | $ | 2,964,837 | $ | 2,939,610 | $ | 2,582,990 | ||||||
Total Revenue Domestic vs. International | ||||||||||||
Domestic | $ | 1,529,906 | $ | 1,566,096 | $ | 1,544,441 | ||||||
Percentage of total revenue | 51.6 | % | 53.3 | % | 59.8 | % | ||||||
International | 1,434,931 | 1,373,514 | 1,038,549 | |||||||||
Percentage of total revenue | 48.4 | % | 46.7 | % | 40.2 | % | ||||||
Total revenue | $ | 2,964,837 | $ | 2,939,610 | $ | 2,582,990 | ||||||
Revenue Summary by Product and Service Solution | ||||||||||||
Financial Self-Service: | ||||||||||||
Products | $ | 1,050,960 | $ | 995,422 | $ | 853,520 | ||||||
Services | 1,020,154 | 943,206 | 900,260 | |||||||||
Total Financial Self-Service | 2,071,114 | 1,938,628 | 1,753,780 | |||||||||
Security Solutions | ||||||||||||
Products | 345,841 | 322,953 | 286,681 | |||||||||
Services | 484,179 | 444,738 | 387,020 | |||||||||
Total Security Solutions | 830,020 | 767,691 | 673,701 | |||||||||
Total Financial Self-Service & Security | 2,901,134 | 2,706,319 | 2,427,481 | |||||||||
Election systems/lottery | 63,703 | 233,291 | 155,509 | |||||||||
Total revenue | $ | 2,964,837 | $ | 2,939,610 | $ | 2,582,990 | ||||||
NOTE | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES |
Currency Cash Flow Hedge | ||||
January 1, 2007 | $ | — | ||
Net change on cash flow hedge | 839 | |||
Reclassification to product cost of sales | (475 | ) | ||
December 31, 2007 | $ | 364 | ||
Interest Rate Hedge | ||||
January 1, 2008 | $ | 1,670 | ||
Net change on cash flow hedge | (4,278 | ) | ||
Reclassification to interest expense | (269 | ) | ||
December 31, 2008 | $ | (2,877 | ) | |
Interest Rate Hedge | ||||
January 1, 2007 | $ | 3,996 | ||
Net change on cash flow hedge | (1,654 | ) | ||
Reclassification to interest expense | (672 | ) | ||
December 31, 2007 | $ | 1,670 | ||
Year Ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
DCM Plan | $ | 3,247 | $ | 19,977 | $ | — | ||||||
Germany Plan | 6,024 | 3,224 | — | |||||||||
RIF Plan | 21,222 | — | — | |||||||||
Newark Plan | 9,125 | — | — | |||||||||
Global R&D Plan | — | — | 12,474 | |||||||||
Other | 1,954 | 391 | 14,503 | |||||||||
Total | $ | 41,572 | $ | 23,592 | $ | 26,977 | ||||||
DI | ||||
Costs incurred for the twelve months ended December 31, 2007: | ||||
Employee severance costs | $ | 16,880 | ||
Other | 9,535 | |||
Total costs incurred | $ | 26,415 | ||
Gain on sale of building | (6,438 | ) | ||
Total net costs incurred | $ | 19,977 | ||
Expected remaining costs at December 31, 2007: | ||||
Employee severance costs | $ | 2,137 | ||
Other(1) | 457 | |||
Total Expected Costs | $ | 2,594 | ||
DNA | DI | |||||||
Total amount expected to be incurred | ||||||||
Employee severance costs | $ | — | $ | 18,889 | ||||
Other(1) | 886 | 10,608 | ||||||
Total expected costs | $ | 886 | $ | 29,497 | ||||
Gain on sale of building | — | (6,438 | ) | |||||
Total net expected costs | $ | 886 | $ | 23,059 | ||||
Amount incurred during the year ended December 31, 2008 | ||||||||
Employee severance costs | $ | — | $ | 1,644 | ||||
Other(1) | 886 | 717 | ||||||
Total costs | $ | 886 | $ | 2,361 | ||||
Amount incurred to date under the plan | ||||||||
Employee severance costs | $ | — | $ | 18,524 | ||||
Other(1) | 886 | 10,252 | ||||||
Total costs incurred to date | $ | 886 | $ | 28,776 | ||||
Gain on sale of building | — | (6,438 | ) | |||||
Total net costs incurred to date | $ | 886 | $ | 22,338 | ||||
(1) | Other costs include legal and contract termination fees, asset impairment costs, and costs to transfer usable inventory and equipment. |
Balance | Liabilities | Liabilities | Balance | |||||||||||||||||
January 1, 2007 | Incurred | Paid/(Settled) | Adjustments(2) | Dec 31, 2007 | ||||||||||||||||
Employee severance costs | $ | — | $ | 16,880 | $ | (14,871 | ) | $ | 506 | $ | 2,515 | |||||||||
Other(1) | — | 9,535 | (6,872 | ) | 239 | 2,902 | ||||||||||||||
Total costs | $ | — | $ | 26,415 | $ | (21,743 | ) | $ | 745 | $ | 5,417 | |||||||||
DNA | DI | |||||||
Total amount expected to be incurred | ||||||||
Employee severance costs | $ | — | $ | 3,657 | ||||
Other(1) | 466 | 5,125 | ||||||
Total expected costs | $ | 466 | $ | 8,782 | ||||
Amount incurred during the year ended December 31, 2008 | ||||||||
Employee severance costs | $ | — | $ | 2,638 | ||||
Other(1) | 466 | 2,920 | ||||||
Total costs | $ | 466 | $ | 5,558 | ||||
Amount incurred to date under the plan | ||||||||
Employee severance costs | $ | — | $ | 3,657 | ||||
Other(1) | 466 | 5,125 | ||||||
Total costs incurred to date | $ | 466 | $ | 8,782 | ||||
Other costs include consulting and legal fees, contract termination fees and asset impairment costs |
DNA | DI | ES & Other | ||||||||||
Total amount expected to be incurred | ||||||||||||
Employee severance costs | $ | 4,616 | $ | 13,390 | $ | 663 | ||||||
Other(1) | — | 3,951 | — | |||||||||
Total expected costs | $ | 4,616 | $ | 17,341 | $ | 663 | ||||||
Amount incurred during the year ended December 31, 2008 | ||||||||||||
Employee severance costs | $ | 4,616 | $ | 13,390 | $ | 663 | ||||||
Other(1) | — | 2,553 | — | |||||||||
Total costs | $ | 4,616 | $ | 15,943 | $ | 663 | ||||||
Amount incurred to date under the plan | ||||||||||||
Employee severance costs | $ | 4,616 | $ | 13,390 | $ | 663 | ||||||
Other(1) | — | 2,553 | — | |||||||||
Total costs incurred to date | $ | 4,616 | $ | 15,943 | $ | 663 | ||||||
(1) | Other costs include legal fees, contract termination fees and asset impairment costs |
Balance | Liabilities | Liabilities | Balance | |||||||||||||
January 1, 2008 | Incurred | Paid/Settled | Dec 31, 2008 | |||||||||||||
Employee severance costs | $ | — | $ | 18,669 | $ | 10,964 | $ | 7,705 | ||||||||
Other | — | 2,553 | 571 | 1,982 | ||||||||||||
Total | $ | — | $ | 21,222 | $ | 11,535 | $ | 9,687 | ||||||||
DNA | ||||
Total amount expected to be incurred | ||||
Employee severance costs | $ | 1,318 | ||
Other(1) | 9,107 | |||
Total expected costs | $ | 10,425 | ||
Amount incurred during the year ended December 31, 2008 | ||||
Employee severance costs | $ | 968 | ||
Other(1) | 8,157 | |||
Total costs | $ | 9,125 | ||
Amount incurred to date under the plan | ||||
Employee severance costs | $ | 968 | ||
Other(1) | 8,157 | |||
Total costs incurred to date | $ | 9,125 | ||
(1) | Other costs include pension obligation. |
Balance | Liabilities | Liabilities | Balance | |||||||||||||
January 1, 2008 | Incurred | Paid/Settled | Dec 31, 2008 | |||||||||||||
Employee severance costs | $ | — | $ | 968 | $ | 366 | $ | 602 | ||||||||
Other | — | 8,157 | 1,422 | 6,735 | ||||||||||||
Total | $ | — | $ | 9,125 | $ | 1,788 | $ | 7,337 | ||||||||
Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities. | ||
• | Level 2 — Unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active or inputs, other than quoted prices in active markets, that are observable either directly or indirectly. | |
• | Level 3 — Unobservable inputs for which there is little or no market data. |
• | Market approach — Prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. | |
• | Cost approach — Amount that would be required to replace the service capacity of an asset (replacement cost). | |
• | Income approach — Techniques to convert future amounts to a single present amount based upon market expectations. |
Fair Value Measurements at | ||||||||||||
Reporting Date Using | ||||||||||||
Quoted Prices in | Significant | |||||||||||
Active Markets | Other | |||||||||||
Fair Value as of | for Identical | Observable | ||||||||||
December 31, | Assets | Inputs | ||||||||||
2008 | (Level 1) | (Level 2) | ||||||||||
Assets | ||||||||||||
Short-term investments | $ | 117,026 | $ | 117,026 | $ | — | ||||||
Foreign exchange forward contracts | 4,361 | — | 4,361 | |||||||||
Deferred compensation | 7,984 | 7,984 | — | |||||||||
Total | $ | 129,371 | $ | 125,010 | $ | 4,361 | ||||||
Liabilities | ||||||||||||
Foreign exchange forward contracts | $ | 1,350 | $ | — | $ | 1,350 | ||||||
Interest rate swaps | 5,228 | — | 5,228 | |||||||||
Total | $ | 6,578 | $ | — | $ | 6,578 | ||||||
DNA | DI | ES & Other | Total | |||||||||||||
2008 | ||||||||||||||||
Customer revenues | $ | 1,535,989 | $ | 1,479,983 | $ | 154,108 | $ | 3,170,080 | ||||||||
Operating profit | 86,936 | 85,305 | 4,040 | 176,281 | ||||||||||||
Capital expenditures | 23,232 | 33,126 | 1,574 | 57,932 | ||||||||||||
Depreciation | 23,768 | 28,445 | 3,082 | 55,295 | ||||||||||||
Property, plant and equipment, at cost | 426,818 | 139,142 | 13,991 | 579,951 | ||||||||||||
Total assets | 1,197,572 | 1,258,206 | 82,158 | 2,537,936 | ||||||||||||
2007 | ||||||||||||||||
Customer revenues | $ | 1,543,055 | $ | 1,340,723 | $ | 63,703 | $ | 2,947,481 | ||||||||
Operating profit (loss) | 112,990 | 52,578 | (60,890 | ) | 104,678 | |||||||||||
Capital expenditures | 13,569 | 26,348 | 3,342 | 43,259 | ||||||||||||
Depreciation | 26,612 | 18,015 | 922 | 45,549 | ||||||||||||
Property, plant and equipment, at cost | 415,798 | 147,141 | 12,857 | 575,796 | ||||||||||||
Total assets | 1,167,782 | 1,333,815 | 93,127 | 2,594,724 | ||||||||||||
2006 | ||||||||||||||||
Customer revenues | $ | 1,519,669 | $ | 1,168,014 | $ | 233,291 | $ | 2,920,974 | ||||||||
Operating profit | 119,786 | 26,604 | 40,224 | 186,614 | ||||||||||||
Capital expenditures | 18,354 | 17,785 | 2,375 | 38,514 | ||||||||||||
Depreciation | 28,634 | 16,256 | 805 | 45,695 | ||||||||||||
Property, plant and equipment, at cost | 398,010 | 147,079 | 5,408 | 550,497 | ||||||||||||
Total assets | 1,117,286 | 1,245,117 | 198,114 | 2,560,517 |
December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Revenue Summary by Geographic Area | ||||||||||||
The Americas | $ | 2,299,588 | $ | 2,115,293 | $ | 2,187,256 | ||||||
Asia Pacific | 400,558 | 337,844 | 290,934 | |||||||||
Europe, Middle East and Africa | 469,934 | 494,344 | 442,784 | |||||||||
Total revenue | $ | 3,170,080 | $ | 2,947,481 | $ | 2,920,974 | ||||||
Total Revenue International vs. Domestic | ||||||||||||
International | $ | 1,603,963 | $ | 1,417,574 | $ | 1,354,878 | ||||||
Percentage of total revenue | 50.6 | % | 48.1 | % | 46.4 | % | ||||||
Domestic | 1,566,117 | 1,529,907 | 1,566,096 | |||||||||
Percentage of total revenue | 49.4 | % | 51.9 | % | 53.6 | % | ||||||
Total revenue | $ | 3,170,080 | $ | 2,947,481 | $ | 2,920,974 | ||||||
Revenue Summary by Product and Service Solution | ||||||||||||
Financial Self-Service: | ||||||||||||
Products | $ | 1,127,120 | $ | 1,050,960 | $ | 995,422 | ||||||
Services | 1,113,450 | 1,020,154 | 943,206 | |||||||||
Total Financial Self-Service | 2,240,570 | 2,071,114 | 1,938,628 | |||||||||
Security Solutions | ||||||||||||
Products | 319,493 | 345,841 | 322,953 | |||||||||
Services | 455,909 | 466,823 | 426,102 | |||||||||
Total Security Solutions | 775,402 | 812,664 | 749,055 | |||||||||
Total Financial Self-Service & Security | 3,015,972 | 2,883,778 | 2,687,683 | |||||||||
Election systems/lottery | 154,108 | 63,703 | 233,291 | |||||||||
Total revenue | $ | 3,170,080 | $ | 2,947,481 | $ | 2,920,974 | ||||||
Year ended December 31, 2007 | Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||||||||||||||||||||||||||||||||||
As Reported | As Restated | 2008 | 2007 | 2008 | 2007 | 2008 | 2007 | 2008 | 2007 | |||||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 628,444 | $ | 646,286 | $ | 695,185 | $ | 740,853 | $ | 882,513 | $ | 691,908 | $ | 641,201 | $ | 768,677 | $ | 689,782 | $ | 886,532 | $ | 736,459 | $ | 822,963 | $ | 880,039 | ||||||||||||||||||||||||||
Gross profit | $ | 120,186 | $ | 129,877 | $ | 163,998 | $ | 177,059 | $ | 212,916 | 172,361 | 129,117 | 192,955 | 163,294 | 232,982 | 176,262 | 196,318 | 213,236 | ||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations | 14,403 | 2,193 | 29,242 | 20,605 | 47,447 | 29,018 | 10,445 | (6,875 | ) | |||||||||||||||||||||||||||||||||||||||||||
Loss from discontinued operations | (608 | ) | (559 | ) | (2,028 | ) | (787 | ) | (931 | ) | (869 | ) | (9,387 | ) | (3,185 | ) | ||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | (5,885 | ) | $ | 1,634 | $ | 19,818 | $ | 28,149 | $ | (10,059 | ) | $ | 13,795 | $ | 1,634 | $ | 27,214 | $ | 19,818 | $ | 46,516 | $ | 28,149 | $ | 1,058 | $ | (10,060 | ) | |||||||||||||||||||||||
Basic earnings (loss) per share | $ | (0.09 | ) | $ | 0.02 | $ | 0.30 | $ | 0.43 | $ | (0.15 | ) | ||||||||||||||||||||||||||||||||||||||||
Diluted earnings (loss) per share | $ | (0.09 | ) | $ | 0.02 | $ | 0.30 | $ | 0.42 | $ | (0.15 | ) | ||||||||||||||||||||||||||||||||||||||||
Basic earnings per share: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Income from continuing operations | $ | 0.22 | $ | 0.03 | $ | 0.44 | $ | 0.31 | $ | 0.72 | $ | 0.44 | $ | 0.16 | $ | (0.10 | ) | |||||||||||||||||||||||||||||||||||
Loss from discontinued operations | (0.01 | ) | (0.01 | ) | (0.03 | ) | (0.01 | ) | (0.02 | ) | (0.01 | ) | (0.14 | ) | (0.05 | ) | ||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 0.21 | $ | 0.02 | $ | 0.41 | $ | 0.30 | $ | 0.70 | $ | 0.43 | $ | 0.02 | $ | (0.15 | ) | |||||||||||||||||||||||||||||||||||
Diluted earnings per share: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Income from continuing operations | $ | 0.22 | $ | 0.03 | $ | 0.44 | $ | 0.31 | $ | 0.71 | $ | 0.43 | $ | 0.15 | $ | (0.10 | ) | |||||||||||||||||||||||||||||||||||
Loss from discontinued operations | (0.01 | ) | (0.01 | ) | (0.03 | ) | (0.01 | ) | (0.01 | ) | (0.01 | ) | (0.14 | ) | (0.05 | ) | ||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 0.21 | $ | 0.02 | $ | 0.41 | $ | 0.30 | $ | 0.70 | $ | 0.42 | $ | 0.01 | $ | (0.15 | ) | |||||||||||||||||||||||||||||||||||
Basic weighted-average shares outstanding | 65,673 | 65,673 | 65,793 | 65,926 | 65,966 | 66,018 | 65,673 | 66,101 | 65,793 | 66,101 | 65,926 | 66,106 | 65,966 | |||||||||||||||||||||||||||||||||||||||
Diluted weighted-average shares outstanding | 66,156 | 66,468 | 66,829 | 66,985 | 66,513 | 66,306 | 66,468 | 66,765 | 66,829 | 66,758 | 66,985 | 66,651 | 66,513 |
Year ended December 31, 2006 | |||||||||||||||||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||||||||||||||||||||
As Reported | As Restated | As Reported | As Restated | As Reported | As Restated | As Reported | As Restated | ||||||||||||||||||||||||||
Net sales | $ | 623,691 | $ | 664,145 | $ | 726,396 | $ | 735,264 | $ | 730,739 | $ | 726,682 | $ | 825,406 | $ | 813,519 | |||||||||||||||||
Gross profit | $ | 144,873 | $ | 159,244 | $ | 174,426 | $ | 177,192 | $ | 182,092 | $ | 188,404 | $ | 209,127 | $ | 212,749 | |||||||||||||||||
Net income | $ | 12,701 | $ | 23,359 | $ | 17,222 | $ | 21,522 | $ | 29,542 | $ | 32,657 | $ | 27,082 | $ | 27,014 | |||||||||||||||||
Basic earnings per share | $ | 0.19 | $ | 0.34 | $ | 0.26 | $ | 0.32 | $ | 0.45 | $ | 0.50 | $ | 0.41 | $ | 0.41 | |||||||||||||||||
Diluted earnings per share | $ | 0.18 | $ | 0.34 | $ | 0.26 | $ | 0.32 | $ | 0.45 | $ | 0.49 | $ | 0.41 | $ | 0.41 | |||||||||||||||||
Basic weighted-average shares outstanding | 68,534 | 68,534 | 67,035 | 67,035 | 65,627 | 65,627 | 65,525 | 65,525 | |||||||||||||||||||||||||
Diluted weighted-average shares outstanding | 68,840 | 69,245 | 67,439 | 67,844 | 66,020 | 66,424 | 66,102 | 66,470 |
Quarter ended | ||||
March 31, 2007 | ||||
First | ||||
Quarter | ||||
Net income (loss) (As Reported) | $ | (5,885 | ) | |
Revenue Recognition — Bill & Hold | 9,379 | |||
Revenue Recognition — Other | 797 | |||
Account Reconciliations | (2,538 | ) | ||
Inventory | 1,507 | |||
Capitalization | (1,240 | ) | ||
Other | (1,409 | ) | ||
Provision for income tax | 1,024 | |||
Net Impact of Adjustments | 7,520 | |||
Net income (As Restated) | $ | 1,635 | ||
Year ended December 31, 2006 | ||||||||||||||||
First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||
Net income (As Reported) | $ | 12,701 | $ | 17,222 | $ | 29,542 | $ | 27,082 | ||||||||
Revenue Recognition — Bill & Hold | 7,854 | (1,141 | ) | (3,290 | ) | (1,841 | ) | |||||||||
Revenue Recognition — Other | 1,980 | 1,695 | 2,247 | (3,186 | ) | |||||||||||
Account Reconciliations | 5,650 | (277 | ) | 9,245 | 3,203 | |||||||||||
Inventory | 1,443 | 3,841 | 197 | 579 | ||||||||||||
Capitalization | (1,182 | ) | (140 | ) | (1,430 | ) | 3,089 | |||||||||
Other | 868 | 2,263 | (635 | ) | 934 | |||||||||||
Provision for income tax | (5,955 | ) | (1,941 | ) | (3,219 | ) | (2,846 | ) | ||||||||
Net Impact of Adjustments | 10,658 | 4,300 | 3,116 | (68 | ) | |||||||||||
Net income (As Restated) | $ | 23,359 | $ | 21,522 | $ | 32,657 | $ | 27,014 | ||||||||
Year ended December 31, 2007 | ||||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||||||
As Reported | As Restated | |||||||||||||||||||
(In millions) | ||||||||||||||||||||
Current assets | $ | 1,454 | $ | 1,559 | $ | 1,580 | $ | 1,646 | $ | 1,631 | ||||||||||
Noncurrent assets | 952 | 914 | 949 | 981 | 1,000 | |||||||||||||||
Total assets | 2,406 | 2,473 | 2,529 | 2,626 | 2,631 | |||||||||||||||
Current liabilities | 615 | 785 | 814 | 804 | 751 | |||||||||||||||
Noncurrent liabilities | 690 | 680 | 666 | 741 | 765 | |||||||||||||||
Shareholders’ equity | 1,101 | 1,008 | 1,049 | 1,082 | 1,115 | |||||||||||||||
Total liabilities and shareholders’ equity | $ | 2,406 | $ | 2,473 | $ | 2,529 | $ | 2,626 | $ | 2,631 | ||||||||||
Year ended December 31, 2006 | ||||||||||||||||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||||||||||||||||||
As | As | As | As | As | As | As | As | |||||||||||||||||||||||||
Reported | Restated | Reported | Restated | Reported | Restated | Reported | Restated | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Current assets | $ | 1,621 | $ | 1,713 | $ | 1,509 | $ | 1,597 | $ | 1,512 | $ | 1,607 | $ | 1,596 | $ | 1,694 | ||||||||||||||||
Noncurrent assets | 902 | 847 | 945 | 891 | 954 | 900 | 918 | 903 | ||||||||||||||||||||||||
Total assets | 2,523 | 2,560 | 2,454 | 2,488 | 2,466 | 2,507 | 2,514 | 2,597 | ||||||||||||||||||||||||
Current liabilities | 594 | 768 | 617 | 783 | 598 | 761 | 599 | 782 | ||||||||||||||||||||||||
Noncurrent liabilities | 796 | 749 | 760 | 712 | 790 | 742 | 824 | 817 | ||||||||||||||||||||||||
Shareholders’ equity | 1,133 | 1,043 | 1,077 | 993 | 1,078 | 1,004 | 1,091 | 998 | ||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 2,523 | $ | 2,560 | $ | 2,454 | $ | 2,488 | $ | 2,466 | $ | 2,507 | $ | 2,514 | $ | 2,597 | ||||||||||||||||
ITEM 9: | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
DISCLOSURE CONTROLS AND PROCEDURES |
MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING |
• | pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; | |
• | provide reasonable assurance that transactions are recorded as necessary to permit preparation of | |
• | provide reasonable assurance that receipts and expenditures of the Company are being made only in accordance with appropriate authorization of management and the board of directors; and | |
• | provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the |
CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING |
D) | REMEDIATION STEPS TO ADDRESS MATERIAL WEAKNESSES |
ITEM 10: | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE |
Name, Age, Title and Year Elected to Present Office | Other Positions Held Last Five Years | |
Thomas W. Swidarski— President and Chief Executive Officer Year elected: 2005 | Oct-Dec 2005: President and Chief Operating Officer;2001-2005: Senior Vice President, Financial Self-Service Group | |
Kevin J. Krakora— Executive Vice President and Chief Financial Officer Year elected: 2006 | 2005-2006: Vice President and Chief Financial Officer;2001-2005: Vice President and Corporate Controller | |
George S. Mayes, Jr.— Executive Vice President, Global Operations Year elected: 2008 | 2006-Apr 2008: Senior Vice President, Supply Chain Management;2005-2006: Vice President, Global Supply Chain Management;2002-2004: Chief Operating Officer, Tinnerman Palnut Engineered Products, Inc. | |
David Bucci— Senior Vice President, Customer Solutions Group Year elected: 2001 | ||
James L. M. Chen— 48 Senior Vice President, EMEA/AP Divisions Year elected: 2007 | 2006-Feb 2007: Vice President, EMEA/AP Divisions; | |
Charles E. Ducey, Jr.— Senior Vice President, Global Development and Services | 2005-Jan 2006: Vice President, Global Development and Services;2001-2005: Vice President, Customer Service Solutions Diebold North America | |
Dennis M. Moriarty— Senior Vice President, Global Security Division Year elected: 2006 | 2001-2006: Vice President, Global Security Division | |
Warren W. Dettinger— Vice President and General Counsel Year elected: 2008 | Dec 2004-Apr 2008: Vice President, General Counsel and Secretary;1987-2004: Vice President and General Counsel | |
Sean F. Forrester— 44 Vice President and Chief Information Officer Year elected: 2007 | Dec 2006-Sept 2007: Vice President, Information Technology;Mar-Dec 2006: Vice President, Information Technology, SPX Corp. Test & Measurement Group;2005-2006: Corporate Director IT Planning & Governance, Dana Corp.;2002-2005: Heavy Vehicle Group — SBU IT Director/Division CIO, Dana Corp. | |
Chad F. Hesse— 36 Corporate Counsel and Secretary Year elected: 2008 | 2004-Apr 2008: Corporate Counsel and Assistant Secretary;2002-2004: Associate Attorney, Hahn, Loeser & Parks LLP | |
M. Scott Hunter— Vice President, Chief Tax Officer Year elected: 2006 | Jan-Apr 2006: Vice President, Tax;2004-Jan 2006: Senior Tax Director;2003-2004: Director, Tax | |
John D. Kristoff— 41 Vice President, Chief Communications Officer Year elected: 2006 | 2005-2006: Vice President, Corporate Communications and Investor Relations;2004-2005: Vice President, Investor Relations;2001-2004: Director, Global Communications | |
Timothy J. McDannold— 46 Vice President and Treasurer Year elected: 2007 | 2000-2007: Vice President and Assistant Treasurer |
Name, Age, Title and Year Elected to Present Office | Other Positions Held Last Five Years | |
Leslie A. Pierce— Vice President and Corporate Controller Year elected: 2007 | Mar 2006-May 2007: Vice President, Accounting, Compliance and External Reporting;1999-Mar 2006: Manager, Special Projects | |
Sheila M. Rutt— 40 Vice President, Chief Human Resources Officer Year elected: 2005 | 2002-2005: Vice President, Global Human Resources | |
Robert J. Warren— Vice President, Corporate Development and Finance Year elected: 2007 | 1990-Jul 2007: Vice President and Treasurer |
ITEM 11: | ||
Stock Options (#) | Cash Dist. ($) | |||||||
Thomas Swidarski | 900 | 5,913 | ||||||
David Bucci | 2,250 | 14,783 | ||||||
Dennis Moriarty | 3,000 | 19,710 |
Change in | ||||||||||||||||||||||||||||||||||||
Pension | ||||||||||||||||||||||||||||||||||||
Value and | ||||||||||||||||||||||||||||||||||||
Non-qualified | ||||||||||||||||||||||||||||||||||||
Non-Equity | Deferred | |||||||||||||||||||||||||||||||||||
Stock | Option | Incentive Plan | Compensation | All Other | ||||||||||||||||||||||||||||||||
Salary | Bonus(1) | Awards(2) | Awards(3) | Compensation | Earnings(4) | Compensation(5) | Total | |||||||||||||||||||||||||||||
Name and Principal Position | Year | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | |||||||||||||||||||||||||||
Thomas W. Swidarski | 2007 | 687,111 | 365,913 | 1,096,523 | 898,350 | 0 | 177,000 | 70,835 | 3,295,732 | |||||||||||||||||||||||||||
President and Chief | 2006 | 550,000 | 0 | 674,188 | 597,741 | 392,500 | 21,000 | 93,727 | 2,329,156 | |||||||||||||||||||||||||||
Executive Officer | ||||||||||||||||||||||||||||||||||||
Kevin J. Krakora | 2007 | 375,354 | 0 | 716,351 | 219,988 | 0 | 127,000 | 38,668 | 1,477,361 | |||||||||||||||||||||||||||
Executive Vice President | 2006 | 320,000 | 0 | 381,635 | 158,861 | 171,273 | 11,000 | 44,578 | 1,087,347 | |||||||||||||||||||||||||||
and Chief Financial Officer | ||||||||||||||||||||||||||||||||||||
David Bucci | 2007 | 322,037 | 14,783 | 521,271 | 251,432 | 0 | 0 | 42,753 | 1,152,276 | |||||||||||||||||||||||||||
Senior Vice President, | 2006 | 302,940 | 0 | 543,001 | 604,016 | 154,035 | 0 | 51,174 | 1,655,166 | |||||||||||||||||||||||||||
Customer Solutions Group | ||||||||||||||||||||||||||||||||||||
Dennis M. Moriarty | 2007 | 275,855 | 73,424 | 583,214 | 119,827 | 0 | 125,000 | 35,171 | 1,212, 491 | |||||||||||||||||||||||||||
Senior Vice President, | 2006 | 250,000 | 0 | 279,983 | 115,495 | 130,462 | 16,000 | 37,581 | 829,521 | |||||||||||||||||||||||||||
Global Security Division | ||||||||||||||||||||||||||||||||||||
James L.M. Chen | 2007 | 292,215 | 113,964 | 269,869 | 118,480 | 0 | n/a | 236,864 | 1,031,392 | |||||||||||||||||||||||||||
Senior Vice President, | 2006 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
EMEA/AP Divisions |
All Other Compensation ($) | ||||||||||||||||||||||||
Names | (a) | (b) | (c) | (d) | (e) | (f) | ||||||||||||||||||
Thomas W. Swidarski | 27,435 | 19,603 | 1,395 | 7,402 | 15,000 | 0 | ||||||||||||||||||
Kevin J. Krakora | 11,554 | 5,777 | 1,187 | 7,575 | 12,575 | 0 | ||||||||||||||||||
David Bucci | 13,576 | 9,503 | 2,087 | 7,587 | 10,000 | 0 | ||||||||||||||||||
Dennis M. Moriarty | 17,402 | 5,515 | 897 | 7,627 | 3,730 | 0 | ||||||||||||||||||
James L.M. Chen | 30,144 | 840 | 0 | 0 | 0 | 205,880 |
All Other | All Other | |||||||||||||||||||||||||||||||||||||||||||
Stock | Option | |||||||||||||||||||||||||||||||||||||||||||
Awards: | Awards: | Grant Date | ||||||||||||||||||||||||||||||||||||||||||
Estimated Possible Payouts | Estimated Future Payouts | Number of | Number of | Exercise or | Fair Value | |||||||||||||||||||||||||||||||||||||||
Under Non-Equity Incentive | Under Equity Incentive | Shares of | Securities | Base Price | of Stock and | |||||||||||||||||||||||||||||||||||||||
Plan Awards(1) | Plan Awards(2) | Stock or | Underlying | of Option | Option | |||||||||||||||||||||||||||||||||||||||
Grant | Thresh | Target | Max | Thresh | Target | Max | Units | Options(3) | Awards | Awards(4) | ||||||||||||||||||||||||||||||||||
Name | Date | ($) | ($) | ($) | (#) | (#) | (#) | (#) | (#) | ($/Sh) | ($) | |||||||||||||||||||||||||||||||||
Thomas W. Swidarski | 2/14/07 | — | — | — | — | — | — | 40,000 | — | 47.27 | 1,890,800 | |||||||||||||||||||||||||||||||||
2/14/07 | — | — | — | 6,000 | 20,000 | 40,000 | — | — | — | 945,400 | ||||||||||||||||||||||||||||||||||
2/14/07 | 274,844 | 687,111 | 1,374,222 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Kevin J. Krakora | 2/14/07 | — | — | — | — | — | — | — | 25,000 | 47.27 | 363,000 | |||||||||||||||||||||||||||||||||
2/14/07 | — | — | — | 3,000 | 10,000 | 20,000 | — | — | — | 472,700 | ||||||||||||||||||||||||||||||||||
2/14/07 | 112,606 | 281,516 | 563,031 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
David Bucci | 2/14/07 | — | — | — | — | — | — | — | 20,000 | 47.27 | 290,400 | |||||||||||||||||||||||||||||||||
2/14/07 | — | — | — | 3,000 | 10,000 | 20,000 | — | — | — | 472,700 | ||||||||||||||||||||||||||||||||||
2/14/07 | 96,611 | 241,528 | 483,056 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Dennis M. Moriarty | 2/14/07 | — | — | — | — | — | — | — | 9,500 | 47.27 | 137,940 | |||||||||||||||||||||||||||||||||
2/14/07 | — | — | — | 1,500 | 5,000 | 10,000 | — | — | — | 236,350 | ||||||||||||||||||||||||||||||||||
2/14/07 | 82,757 | 206,891 | 413,782 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
James L.M. Chen | 2/14/07 | — | — | — | — | — | — | — | 9,500 | 47.27 | 137,940 | |||||||||||||||||||||||||||||||||
2/14/07 | — | — | — | 1,500 | 5,000 | 10,000 | — | — | — | 236,350 | ||||||||||||||||||||||||||||||||||
2/14/07 | 87,665 | 219,161 | 438,322 | — | — | — | — | — | — | — |
Stock Options (#) | Cash Dist. ($) | |||||||
Thomas Swidarski | 900 | 5,913 | ||||||
David Bucci | 2,250 | 14,783 | ||||||
Dennis Moriarty | 3,000 | 19,710 |
Stock | Option | All Other | ||||||||||||||||||||||
Base Salary | Effective Bonus | Awards | Awards | Compensation | Total Value | |||||||||||||||||||
Name | ($) | ($) | ($) | ($) | ($) | ($) | ||||||||||||||||||
Thomas W. Swidarski | 687,111 | 365,913 | 2,836,200 | 0 | 70,835 | 3,960,059 | ||||||||||||||||||
Kevin J. Krakora | 375,354 | 0 | 472,700 | 363,000 | 38,668 | 1,249,722 | ||||||||||||||||||
David Bucci | 322,037 | 14,783 | 472,700 | 290,400 | 42,753 | 1,142,673 | ||||||||||||||||||
Dennis M. Moriarty | 275,855 | 73,424 | 236,350 | 137,940 | 35,171 | 758,740 | ||||||||||||||||||
James L.M. Chen | 292,215 | 117,721 | 236,350 | 137,940 | 236,864 | 1,021,090 |
Option Awards(1) | Stock Awards | |||||||||||||||||||||||||||||||||||||||
Equity | Market | |||||||||||||||||||||||||||||||||||||||
Incentive | Value of | |||||||||||||||||||||||||||||||||||||||
Plan Awards: | Shares or | Equity Incentive Plan Awards: | ||||||||||||||||||||||||||||||||||||||
Number | Units of | Market or Payout | ||||||||||||||||||||||||||||||||||||||
Number of Securities | of Securities | Stock | Value of Unearned | |||||||||||||||||||||||||||||||||||||
Underlying | Underlying | That | Number of Unearned | Shares, Units or | ||||||||||||||||||||||||||||||||||||
Unexercised | Unexercised | Option | Number of Shares or | Have | Shares, Units or | Other Rights That | ||||||||||||||||||||||||||||||||||
Grant | Options | Unearned | Exercise | Option | Units of Stock That | Not | Other Rights That | Have Not | ||||||||||||||||||||||||||||||||
Date of | Exercisable | Unexercisable | Options | Price | Expiration | Have Not Vested(2) | Vested(3) | Have Not Vested(4) | Vested(3) | |||||||||||||||||||||||||||||||
Name | Award | (#) | (#) | (#) | ($) | Date | (#) | ($) | (#) | ($) | ||||||||||||||||||||||||||||||
Thomas W. Swidarski | 1/29/98 | 600 | — | — | 47.53 | 1/28/08 | — | $ | — | — | $ | — | ||||||||||||||||||||||||||||
1/28/99 | 1,300 | — | — | 34.81 | 1/27/09 | — | — | — | — | |||||||||||||||||||||||||||||||
1/27/00 | 1,500 | — | — | 22.88 | �� | 1/26/10 | — | — | — | — | ||||||||||||||||||||||||||||||
2/7/01 | 8,000 | — | — | 28.69 | 2/6/11 | — | — | — | — | |||||||||||||||||||||||||||||||
2/6/02 | 15,000 | — | — | 36.59 | 2/5/12 | — | — | — | — | |||||||||||||||||||||||||||||||
2/5/03 | 20,000 | — | 36.31 | 2/4/13 | — | — | — | — | ||||||||||||||||||||||||||||||||
2/11/04 | 18,750 | 6,250 | — | 53.10 | 2/10/14 | — | — | — | — | |||||||||||||||||||||||||||||||
2/10/05 | 11,450 | 11,450 | — | 55.23 | 2/9/15 | — | — | — | — | |||||||||||||||||||||||||||||||
12/12/05 | 75,000 | 75,000 | — | 37.87 | 12/11/15 | — | — | — | — | |||||||||||||||||||||||||||||||
2/14/07 | — | — | — | — | — | 40,000 | 1,159,200 | — | — | |||||||||||||||||||||||||||||||
2/6/02 | — | — | — | — | — | — | — | 700 | 20,286 | |||||||||||||||||||||||||||||||
2/11/05 | — | — | — | — | — | — | — | 9,200 | 266,616 | |||||||||||||||||||||||||||||||
2/20/06 | — | — | — | — | — | — | — | 20,000 | 579,600 | |||||||||||||||||||||||||||||||
2/14/07 | — | — | — | — | — | — | — | 20,000 | 579,600 | |||||||||||||||||||||||||||||||
Kevin J. Krakora | 9/18/01 | 5,000 | — | — | 35.60 | 9/17/11 | — | — | — | — | ||||||||||||||||||||||||||||||
2/6/02 | 10,000 | — | — | 36.59 | 2/5/12 | — | — | — | — | |||||||||||||||||||||||||||||||
2/5/03 | 10,000 | — | — | 36.31 | 2/4/13 | — | — | — | — | |||||||||||||||||||||||||||||||
2/11/04 | 5,250 | 1,750 | — | 53.10 | 2/10/14 | — | — | — | — | |||||||||||||||||||||||||||||||
2/10/05 | 3,250 | 3,250 | — | 55.23 | 2/9/15 | — | — | — | — | |||||||||||||||||||||||||||||||
2/20/06 | 6,250 | 18,750 | — | 39.43 | 2/19/16 | — | — | — | — | |||||||||||||||||||||||||||||||
2/14/07 | — | 25,000 | — | 47.27 | 2/13/17 | — | — | — | — | |||||||||||||||||||||||||||||||
2/20/06 | — | — | — | — | — | 7,500 | 217,350 | — | — | |||||||||||||||||||||||||||||||
2/6/02 | — | — | — | — | — | — | — | 200 | 5,796 | |||||||||||||||||||||||||||||||
2/11/05 | — | — | — | — | — | — | — | 3,800 | 110,124 | |||||||||||||||||||||||||||||||
2/20/06 | — | — | — | — | — | — | — | 10,000 | 289,800 | |||||||||||||||||||||||||||||||
2/14/07 | — | — | — | — | — | — | — | 10,000 | 289,800 | |||||||||||||||||||||||||||||||
David Bucci | 1/29/98 | 9,000 | — | — | 47.53 | 1/28/08 | — | — | — | — | ||||||||||||||||||||||||||||||
1/27/00 | 35,000 | — | — | 22.88 | 1/26/10 | — | — | — | — | |||||||||||||||||||||||||||||||
2/7/01 | 25,000 | — | — | 28.69 | 2/6/11 | — | — | — | — | |||||||||||||||||||||||||||||||
2/6/02 | 25,000 | — | — | 36.59 | 2/5/12 | — | — | — | — | |||||||||||||||||||||||||||||||
2/5/03 | 25,000 | — | — | 36.31 | 2/4/13 | — | — | — | — | |||||||||||||||||||||||||||||||
2/11/04 | 18,750 | 6,250 | — | 53.10 | 2/10/14 | — | — | — | — | |||||||||||||||||||||||||||||||
2/10/05 | 12,500 | 12,500 | — | 55.23 | 2/9/15 | — | — | — | — | |||||||||||||||||||||||||||||||
2/20/06 | 6,250 | 18,750 | — | 39.43 | 2/19/16 | — | — | — | — | |||||||||||||||||||||||||||||||
2/14/07 | — | 20,000 | — | 47.27 | 2/13/17 | — | — | — | — | |||||||||||||||||||||||||||||||
2/10/05 | — | — | — | — | — | 1,250 | 36,225 | — | — | |||||||||||||||||||||||||||||||
2/6/02 | — | — | — | — | — | — | — | 1,700 | 49,266 | |||||||||||||||||||||||||||||||
2/11/05 | — | — | — | — | — | — | — | 9,400 | 272,412 | |||||||||||||||||||||||||||||||
2/20/06 | — | — | — | — | — | — | — | 10,000 | 289,800 | |||||||||||||||||||||||||||||||
2/14/07 | — | — | — | — | — | — | — | 10,000 | 289,800 | |||||||||||||||||||||||||||||||
Dennis M. Moriarty | 1/29/98 | 1,500 | ��� | — | 47.53 | 1/28/08 | — | — | — | — |
Option Awards(1) | Stock Awards | |||||||||||||||||||||||||||||||||||||||
Equity | Market | |||||||||||||||||||||||||||||||||||||||
Incentive | Value of | |||||||||||||||||||||||||||||||||||||||
Plan Awards: | Shares or | Equity Incentive Plan Awards: | ||||||||||||||||||||||||||||||||||||||
Number | Units of | Market or Payout | ||||||||||||||||||||||||||||||||||||||
Number of Securities | of Securities | Stock | Value of Unearned | |||||||||||||||||||||||||||||||||||||
Underlying | Underlying | That | Number of Unearned | Shares, Units or | ||||||||||||||||||||||||||||||||||||
Unexercised | Unexercised | Option | Number of Shares or | Have | Shares, Units or | Other Rights That | ||||||||||||||||||||||||||||||||||
Grant | Options | Une arned | Exercise | Option | Units of Stock That | Not | Other Rights That | Have Not | ||||||||||||||||||||||||||||||||
Date of | Exercisable | Unexercisable | Options | Price | Expiration | Have Not Vested(2) | Vested(3) | Have Not Vested(4) | Vested(3) | |||||||||||||||||||||||||||||||
Name | Award | (#) | (#) | (#) | ($) | Date | (#) | ($) | (#) | ($) | ||||||||||||||||||||||||||||||
1/28/99 | 4,000 | — | — | 34.81 | 1/27/09 | — | — | — | — | |||||||||||||||||||||||||||||||
1/27/00 | 4,000 | — | — | 22.88 | 1/26/10 | — | — | — | — | |||||||||||||||||||||||||||||||
2/7/01 | 8,000 | — | — | 28.69 | 2/6/11 | — | — | — | — | |||||||||||||||||||||||||||||||
2/6/02 | 8,000 | — | — | 36.59 | 2/5/12 | — | — | — | — | |||||||||||||||||||||||||||||||
2/5/03 | 10,000 | — | — | 36.31 | 2/4/13 | — | — | — | — | |||||||||||||||||||||||||||||||
2/11/04 | 5,250 | 1,750 | — | 53.10 | 2/10/14 | — | — | — | — | |||||||||||||||||||||||||||||||
2/10/05 | 3,750 | 3,750 | — | 55.23 | 2/9/15 | — | — | — | — | |||||||||||||||||||||||||||||||
2/20/06 | 2,500 | 7,500 | — | 39.43 | 2/19/16 | — | — | — | — | |||||||||||||||||||||||||||||||
2/14/07 | — | 9,500 | — | 47.27 | 2/13/17 | — | — | — | — | |||||||||||||||||||||||||||||||
2/10/05 | — | — | — | — | — | 750 | 21,735 | — | — | |||||||||||||||||||||||||||||||
2/20/06 | — | — | — | — | — | 4,500 | 130,410 | — | — | |||||||||||||||||||||||||||||||
2/6/02 | — | — | — | — | — | — | — | 800 | 23,184 | |||||||||||||||||||||||||||||||
2/11/05 | — | — | — | — | — | — | — | 2,800 | 81,144 | |||||||||||||||||||||||||||||||
2/20/06 | — | — | — | — | — | — | — | 5,000 | 144,900 | |||||||||||||||||||||||||||||||
2/14/07 | — | — | — | — | — | — | — | 5,000 | 144,900 | |||||||||||||||||||||||||||||||
James L.M. Chen | 2/6/02 | 5,000 | — | — | 36.59 | 2/5/12 | — | — | — | — | ||||||||||||||||||||||||||||||
2/5/03 | 7,500 | — | — | 36.31 | 2/4/13 | — | — | — | — | |||||||||||||||||||||||||||||||
2/11/04 | 6,000 | 2,000 | — | 53.10 | 2/10/14 | — | — | — | — | |||||||||||||||||||||||||||||||
2/10/05 | 4,000 | 4,000 | — | 55.23 | 2/9/15 | — | — | — | — | |||||||||||||||||||||||||||||||
2/20/06 | 2,000 | 6,000 | — | 39.43 | 2/19/16 | — | — | — | — | |||||||||||||||||||||||||||||||
2/14/07 | — | 9,500 | — | 47.27 | 2/13/17 | — | — | — | — | |||||||||||||||||||||||||||||||
2/20/06 | — | — | — | — | — | 750 | 21,735 | — | — | |||||||||||||||||||||||||||||||
2/6/02 | — | — | — | — | — | — | — | 900 | 26,082 | |||||||||||||||||||||||||||||||
2/11/05 | — | — | — | — | — | — | — | 3,600 | 104,328 | |||||||||||||||||||||||||||||||
2/20/06 | — | — | — | — | — | — | — | 5,000 | 144,900 | |||||||||||||||||||||||||||||||
2/14/07 | — | — | — | — | — | — | — | 5,000 | 144,900 |
Option Awards | Stock Awards | |||||||||||||||
Number of Shares | Number of Shares | |||||||||||||||
Acquired on | Value Realized on | Acquired on | Value Realized on | |||||||||||||
Exercise | Exercise | Vesting | Vesting(1) | |||||||||||||
Name | (#) | ($) | (#) | ($) | ||||||||||||
Thomas W. Swidarski | 0 | $ | 0 | 0 | $ | 0 | ||||||||||
Kevin J. Krakora | 0 | 0 | 7,500 | 397,875 | ||||||||||||
David Bucci | 0 | 0 | 0 | 0 | ||||||||||||
Dennis M. Moriarty | 0 | 0 | 4,500 | 238,725 | ||||||||||||
James L.M. Chen | 0 | 0 | 750 | 39,788 |
Number of Years of | Present Value of | Payment During | ||||||
Credited Service | Accumulated Benefit(1) | Last Fiscal Year | ||||||
Name | Plan Name | (#) | ($) | ($) | ||||
Thomas W. Swidarski | Qualified Plan | 11.0833 | $106,000 | — | ||||
Pension SERP | 11.0833 | 122,000 | — | |||||
Pension Restoration SERP | 11.0833 | 62,000 | — | |||||
Kevin J. Krakora | Qualified Plan | 6.0000 | 58,000 | — | ||||
Pension SERP | 6.0000 | 96,000 | — | |||||
Pension Restoration SERP | 6.0000 | 21,000 | — | |||||
David Bucci | Qualified Plan | 30.0000 | 1,463,000 | — | ||||
SERP I | 30.0000 | 865,000 | — | |||||
Dennis M. Moriarty | Qualified Plan | 10.8333 | 129,000 | — | ||||
Pension SERP | 10.8333 | 81,000 | — | |||||
Pension Restoration SERP | 10.8333 | 33,000 | — | |||||
James L.M. Chen | 0 | 0 | — |
1992 Deferred Compensation Plan | ||||||||||||||||||||
Aggregate Balance | ||||||||||||||||||||
Executive | Registrant | Aggregate | Aggregate | as of | ||||||||||||||||
Contributions | Contributions | Earnings in | Withdrawals/ | December 31, | ||||||||||||||||
in 2007 | in 2007 | 2007(1) | Distributions(2) | 2007(3) | ||||||||||||||||
Name | ($) | ($) | ($) | ($) | ($) | |||||||||||||||
Thomas W. Swidarski | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||
Kevin J. Krakora | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
David Bucci | 0 | 0 | 9,160 | 948,618 | 248,971 | |||||||||||||||
Dennis M. Moriarty | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
James L.M. Chen | 0 | 0 | 0 | 0 | 0 |
2005 Deferred Compensation Plan | ||||||||||||||||||||
Aggregate Balance | ||||||||||||||||||||
Executive | Registrant | Aggregate | Aggregate | as of | ||||||||||||||||
Contributions | Contributions | Earnings in | Withdrawals/ | December 31, | ||||||||||||||||
in 2007 | in 2007 | 2007(1) | Distributions | 2007(2) | ||||||||||||||||
Name | ($) | ($) | ($) | ($) | ($) | |||||||||||||||
Thomas W. Swidarski | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||
Kevin J. Krakora | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
David Bucci | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Dennis M. Moriarty | 0 | 0 | 1,405 | 0 | 44,151 | |||||||||||||||
James L.M. Chen | 0 | 0 | 0 | 0 | 0 |
401(k) Restoration SERP | ||||||||||||||||||||
Aggregate Balance | ||||||||||||||||||||
Executive | Registrant | Aggregate | Aggregate | as of | ||||||||||||||||
Contributions | Contributions | Earnings in | Withdrawals/ | December 31, | ||||||||||||||||
in 2007 | in 2007 | 2007(1) | Distributions | 2007(2) | ||||||||||||||||
Name | ($) | ($) | ($) | ($) | ($) | |||||||||||||||
Thomas W. Swidarski | $ | 50,500 | $ | 25,275 | $ | (4,880 | ) | $ | 0 | $ | 70,895 | |||||||||
Kevin J. Krakora | 18,856 | 9,428 | (341 | ) | 0 | 27,943 | ||||||||||||||
David Bucci | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Dennis M. Moriarty | 10,453 | 5,226 | (421 | ) | 0 | 15,258 | ||||||||||||||
James L.M. Chen | 0 | 0 | 0 | 0 | 0 |
Name of Fund | Rate of Return | Name of Fund | Rate of Return | ||||||||
Vanguard Total Bond Market Index Fund | 6.92 | % | Vanguard Selected Value Fund | (0.23 | )% | ||||||
Loomis Sayles Bond Fund | 5.26 | % | Vanguard Mid-Cap Index Fund | 6.02 | % | ||||||
Vanguard STAR Fund | 6.58 | % | Loomis Sayles Small Cap Value Fund | 3.44 | % | ||||||
Vanguard Windsor II Fund | 2.23 | % | Vanguard Explorer Fund | 5.06 | % | ||||||
Vanguard 500 Index Fund | 5.39 | % | Vanguard International Growth Fund | 15.98 | % | ||||||
Vanguard U.S. Growth Fund | 10.15 | % | Oppenheimer Developing Markets Fund | 33.86 | % | ||||||
Vanguard Prime Money Market Fund | 5.14 | % | Vanguard International Value Fund | 12.66 | % | ||||||
Change in | ||||||||||||||||||||||||||||||||||
Compensation | Involuntary | Involuntary | Change in | Control w/ | ||||||||||||||||||||||||||||||
Name | Components | Voluntary | with Cause | w/o Cause | Retirement | Death | Disability | Control | Termination | |||||||||||||||||||||||||
Thomas W. Swidarski | Salary/Bonus | $ | — | $ | — | $ | 2,748,444 | $ | — | $ | — | $ | — | $ | — | $ | 2,061,333 | |||||||||||||||||
Long-Term Incentives: | ||||||||||||||||||||||||||||||||||
Stock options(1) | — | — | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||
Performance shares(2) | — | — | 866,502 | 866,502 | 866,502 | 866,502 | 1,446,102 | 1,446,102 | ||||||||||||||||||||||||||
RSUs | — | — | — | — | 1,159,200 | 1,159,200 | 1,159,200 | 1,159,200 | ||||||||||||||||||||||||||
Retirement Benefits: | ||||||||||||||||||||||||||||||||||
Qualified Retirement Plan/SERP(3) | 449,000 | 110,000 | 449,000 | — | 354,000 | 449,000 | — | 539,000 | ||||||||||||||||||||||||||
Other Benefits(4) | — | — | 20,621 | —- | —- | 1,383,121 | (6) | — | 154,842 | |||||||||||||||||||||||||
Total: | $ | 449,000 | $ | 110,000 | $ | 4,084,567 | $ | 866,502 | $ | 2,379,702 | $ | 3,857,823 | $ | 2,605,302 | $ | 5,360,477 | ||||||||||||||||||
Kevin J. Krakora | Salary/Bonus | — | — | 93,839 | — | — | — | — | 750,708 | |||||||||||||||||||||||||
Long-Term Incentives: | ||||||||||||||||||||||||||||||||||
Stock options(1) | — | — | — | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||
Performance shares(2) | — | — | — | 405,720 | 405,720 | 405,720 | 695,520 | 695,520 | ||||||||||||||||||||||||||
RSUs | — | — | — | 217,350 | 217,350 | 217,350 | 217,350 | 217,350 | ||||||||||||||||||||||||||
Retirement Benefits: | ||||||||||||||||||||||||||||||||||
Qualified Retirement Plan/SERP(3) | 106,000 | 63,000 | 106,000 | — | 56,000 | 106,000 | — | 251,000 | ||||||||||||||||||||||||||
Other Benefits(4) | — | — | — | — | — | — | — | 56,890 | ||||||||||||||||||||||||||
Total: | 106,000 | 63,000 | 199,839 | 623,070 | 679,070 | 729,070 | 912,870 | 1,971,468 | ||||||||||||||||||||||||||
David Bucci | Salary/Bonus | — | — | 161,019 | — | — | — | — | 644,074 | |||||||||||||||||||||||||
Long-Term Incentives: | ||||||||||||||||||||||||||||||||||
Stock options(1) | — | — | — | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||
Performance shares(2) | — | — | — | 611,478 | 611,478 | 611,478 | 901,278 | 901,278 | ||||||||||||||||||||||||||
Restricted Shares / RSU | — | — | 36,225 | 36,225 | 36,225 | 36,225 | 36,225 | 36,225 | ||||||||||||||||||||||||||
Retirement Benefits: | ||||||||||||||||||||||||||||||||||
Qualified Retirement Plan/SERP(3) | 1,940,000 | 1,470,000 | 2,321,000 | 390,076 | 1,613,000 | 3,079,000 | — | 2,321,000 | ||||||||||||||||||||||||||
Deferred Compensation Plan (5) | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Other Benefits(4) | — | — | — | — | — | — | — | 51,170 | ||||||||||||||||||||||||||
Total: | 1,940,000 | 1,470,000 | 2,518,244 | 1,037,779 | 2,260,703 | 3,726,703 | 937,503 | 3,953,747 | ||||||||||||||||||||||||||
Dennis M. Moriarty | Salary/Bonus | — | — | 91,952 | — | — | — | — | 551,710 | |||||||||||||||||||||||||
Long-Term Incentives: | ||||||||||||||||||||||||||||||||||
Stock options(1) | — | — | — | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||
Performance shares(2) | — | — | — | 249,228 | 249,228 | 249,228 | 394,128 | 394,128 | ||||||||||||||||||||||||||
Restricted Shares / RSU | — | — | 21,735 | 152,145 | 152,145 | 152,145 | 152,145 | 152,145 | ||||||||||||||||||||||||||
Retirement Benefits: | ||||||||||||||||||||||||||||||||||
Qualified Retirement Plan/SERP(3) | 285,000 | 137,000 | 285,000 | — | 195,000 | 285,000 | — | 311,000 | ||||||||||||||||||||||||||
Deferred Compensation Plan(5) | 44,151 | 44,151 | 44,151 | 44,151 | 44,151 | 44,151 | — | 44,151 | ||||||||||||||||||||||||||
Other Benefits(4) | — | — | — | — | — | — | — | 45,218 | ||||||||||||||||||||||||||
Total: | 329,151 | 181,151 | 442,838 | 445,524 | 640,524 | 730,524 | 546,273 | 1,498,352 | ||||||||||||||||||||||||||
James L.M. Chen | Salary/Bonus | — | — | 73,054 | — | — | — | — | 584,430 | |||||||||||||||||||||||||
Long-Term Incentives: | ||||||||||||||||||||||||||||||||||
Stock options(1) | — | — | — | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||
Performance shares(2) | — | — | — | 275,310 | 275,310 | 275,310 | 420,210 | 420,210 | ||||||||||||||||||||||||||
RSUs | — | — | — | 21,735 | 21,735 | 21,735 | 21,735 | 21,735 | ||||||||||||||||||||||||||
Other Benefits(4) | — | — | — | — | — | — | — | 249,124 | ||||||||||||||||||||||||||
Total: | —- | — | 73,054 | 297,045 | 297,045 | 297,045 | 441,945 | 1,275,499 | ||||||||||||||||||||||||||
Fees Earned or | ||||||||||||||||
Paid in Cash(2) | Stock Awards(3) | Option Awards(4) | Total | |||||||||||||
Name | ($) | ($) | ($) | ($) | ||||||||||||
Louis V. Bockius III | $ | 64,000 | $ | 77,136 | $ | 32,991 | $ | 174,127 | ||||||||
Phillip R. Cox | 60,000 | 52,478 | 21,184 | 133,662 | ||||||||||||
Richard L. Crandall | 77,000 | 77,136 | 35,365 | 189,501 | ||||||||||||
Gale S. Fitzgerald | 69,500 | 52,478 | 46,131 | 168,109 | ||||||||||||
Phillip B. Lassiter | 67,000 | 77,136 | 35,365 | 179,501 | ||||||||||||
John N. Lauer | 162,000 | 77,136 | 35,365 | 274,501 | ||||||||||||
William F. Massy(1) | 17,333 | 0 | 37,112 | 54,445 | ||||||||||||
Eric J. Roorda | 62,000 | 52,478 | 42,846 | 157,324 | ||||||||||||
Henry D. G. Wallace | 68,000 | 52,478 | 38,936 | 159,414 | ||||||||||||
Alan J. Weber | 68,500 | 52,478 | 19,845 | 140,823 |
Board | ||||||||||||||||||||
Audit | Governance | Compensation | Investment | IT Oversight | ||||||||||||||||
Name | Committee | Committee | Committee | Committee | Committee | |||||||||||||||
Louis V. Bockius III | $ | 9,000 | $ | 5,000 | $ | — | $ | — | $ | — | ||||||||||
Phillip R. Cox | — | — | 7,000 | 3,000 | — | |||||||||||||||
Richard L. Crandall | 9,000 | — | — | 3,000 | 15,000 | |||||||||||||||
Gale S. Fitzgerald | — | 8,000 | 7,000 | — | 4,500 | |||||||||||||||
Phillip B. Lassiter | — | 5,000 | 12,000 | — | — | |||||||||||||||
John N. Lauer | — | 5,000 | 7,000 | — | — | |||||||||||||||
William F. Massy | 3,000 | — | — | 1,000 | — | |||||||||||||||
Eric J. Roorda | 9,000 | — | — | 3,000 | — | |||||||||||||||
Henry D. G. Wallace | 15,000 | — | — | 3,000 | — | |||||||||||||||
Alan J. Weber | 9,000 | — | — | 5,000 | 4,500 |
ITEM 12: | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS |
Amount and Nature | ||||||||||||||
of Beneficial | ||||||||||||||
Title of Class | Name of Beneficial Owner | Ownership | Percent of Class | |||||||||||
Common Shares | GGCP, Inc. et al. | 4,706,900 | (1) | 7.2 | ||||||||||
One Corporate Center | ||||||||||||||
Rye, New York 10580 | ||||||||||||||
Common Shares | Cooke & Bieler, L.P. | 3,736,071 | (2) | 5.7 | ||||||||||
1700 Market Street | ||||||||||||||
Suite 3222 | ||||||||||||||
Philadelphia, Pennsylvania 19103 | ||||||||||||||
Common Shares | Janus Capital Management LLC et al. | 3,557,648(3 | ) | 5.4 | ||||||||||
151 Detroit Street | ||||||||||||||
Denver, Colorado 80206 | ||||||||||||||
Common Shares | Capital World Investors | 3,325,000(4 | ) | 5.l | ||||||||||
333 South Hope Street | ||||||||||||||
Los Angeles, California 90071 |
Stock Options | ||||||||||||||||
Common Shares | Exercisable | |||||||||||||||
Beneficially | Within 60 | Deferred | Percent of | |||||||||||||
Directors: | Owned | Days | Shares(1) | Class | ||||||||||||
Louis V. Bockius III | 192,867 | 14,125 | 1,600 | .31 | ||||||||||||
Phillip R. Cox | — | 4,500 | 1,600 | * | ||||||||||||
Richard L. Crandall | 9,089 | 18,125 | 1,600 | 0.04 | ||||||||||||
Gale S. Fitzgerald | 6,089 | 18,125 | 1,600 | 0.04 | ||||||||||||
Phillip B. Lassiter | 8,771 | 18,125 | 1,600 | 0.04 | ||||||||||||
John N. Lauer | 19,721 | 15,125 | 2,877 | 0.05 | ||||||||||||
Eric J. Roorda | 313,568 | 22,125 | 1,600 | 0.51 | ||||||||||||
Thomas W. Swidarski | 61,687 | (2),(3) | 162,975 | — | 0.34 | |||||||||||
Henry D. G. Wallace | 1,000 | 14,125 | 1,600 | 0.02 | ||||||||||||
Alan J. Weber | 1,500 | 5,625 | 1,600 | 0.01 | ||||||||||||
Other Named Executive Officers: | ||||||||||||||||
Kevin J. Krakora Executive Vice President and Chief Financial Officer | 19,426 | (2) | 55,625 | — | 0.11 | |||||||||||
David Bucci Senior Vice President, Customer Solutions Group | 49,779 | (2),(3) | 171,250 | 7,500 | 0.33 | |||||||||||
Dennis M. Moriarty Senior Vice President, Global Security Division | 20,754 | 54,000 | 1,475 | 0.11 | ||||||||||||
James L.M. Chen Senior Vice President, EMEA/AP Divisions | 42,816 | 32,875 | — | 0.11 | ||||||||||||
All Current Directors and Executive Officers as a Group (26) | 861,367 | (2),(3) | 848,187 | 26,762 | 2.59 |
Number of securities | ||||||||||||
Number of securities | remaining available for | |||||||||||
to be issued upon | Weighted-average | future issuance under | ||||||||||
exercise of | exercise price of | equity compensation plans | ||||||||||
outstanding options, | outstanding options, | (excluding securities | ||||||||||
warrants and rights | warrants and rights | reflected in column (a)) | ||||||||||
Plan category | (a) | (b) | (c) | |||||||||
Equity compensation plans approved by security holders | 4,105,247 | $ | 41.56 | 918,313 | ||||||||
Equity compensation plans not approved by security holders | — | — | — | |||||||||
Total | 4,105,247 | $ | 41.56 | 918,313 |
ITEM 13: | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE |
2007 | 2006 | |||||||
Audit Fees(1) | $ | 8,252,764 | $ | 2,942,450 | ||||
Audit-Related Fees(2) | 2,075,708 | 552,630 | ||||||
Tax Fees(3) | 1,219,484 | 894,030 | ||||||
All Other Fees(4) | 0 | 0 | ||||||
Total | $ | 11,547,956 | $ | 4,389,110 | ||||
ITEM 15: | EXHIBITS AND FINANCIAL STATEMENT SCHEDULES |
• | Consolidated Balance Sheets at December 31, | |
• | Consolidated Statements of Income for the Years Ended December 31, 2008, 2007 | |
• | Consolidated Statements of Shareholders’ Equity for the Years Ended December 31, 2008, 2007 |
• | Consolidated Statements of Cash Flows for the Years Ended December 31, 2008, 2007 |
• | Notes to Consolidated Financial Statements | |
• | Reports of Independent Registered Public Accounting Firm |
• | Report of Independent Registered Public Accounting Firm, and | |
• | Valuation and Qualifying Accounts. |
3 | .1(i) | Amended and Restated Articles of Incorporation of Diebold, Incorporated — incorporated by reference to Exhibit 3.1 (i) to Registrant’s Annual Report on Form 10-K for the year ended December 31, 1994. (Commission File No. 1-4879) | ||
3 | .1(ii) | Amended and Restated Code of Regulations of Diebold, Incorporated — incorporated by reference to Exhibit 3.1(ii) to Registrant’s Form 10-Q for the quarter ended March 31, 2007. (Commission File No. 1-4879) | ||
3 | .2 | Certificate of Amendment by Shareholders to Amended Articles of Incorporation of Diebold, Incorporated — incorporated by reference to Exhibit 3.2 to Registrant’s Form 10-Q for the quarter ended March 31, 1996. (Commission File No. 1-4879) | ||
3 | .3 | Certificate of Amendment to Amended Articles of Incorporation of Diebold, Incorporated — incorporated by reference to Exhibit 3.3 to Registrant’s Annual Report on Form 10-K for the year ended December 31, 1998. (Commission File No. 1-4879) | ||
4 | .1 | Rights Agreement dated as of February 11, 1999 between Diebold, Incorporated and The Bank of New York — incorporated by reference to Exhibit 4.1 to Registrant’s Registration Statement on Form 8-A, filed February 2, 1999. (Commission File No. 1-4879) | ||
*10 | .1 | Form of Employment Agreement as amended and restated as of September 13, 1990 — incorporated by reference to Exhibit 10.1 to Registrant’s Annual Report on Form 10-K for the year ended December 31, 1990. (Commission File No. 1-4879) | ||
*10 | .2 | Schedule of Certain Officers who are Parties to Employment Agreements — incorporated by reference to Exhibit 10.2 to Registrant’s Annual Report on Form 10-K for the year ended December 31, 2005. (Commission File No. 1-4879) | ||
*10 | .5(i) | Supplemental Employee Retirement Plan I as amended and restated July 1, 2002 — incorporated by reference to Exhibit 10.5(i) to Registrant’s Form 10-Q for the quarter ended September 30, 2002. (Commission File No. 1-4879) | ||
*10 | .5(ii) | Supplemental Employee Retirement Plan II as amended and restated July 1, 2002 — incorporated by reference to Exhibit 10.5(ii) to Registrant’s Form 10-Q for the quarter ended September 30, 2002. (Commission File No. 1-4879) | ||
*10 | .7(i) | 1985 Deferred Compensation Plan for Directors of Diebold, Incorporated — incorporated by reference to Exhibit 10.7 to Registrant’s Annual Report on Form 10-K for the year ended December 31, 1992. (Commission File No. 1-4879) |
3 | .1(i) | Amended and Restated Articles of Incorporation of Diebold, Incorporated — incorporated by reference to Exhibit 3.1(i) to Registrant’s Annual Report onForm 10-K for the year ended December 31, 1994 (Commission FileNo. 1-4879) | ||
3 | .1(ii) | Amended and Restated Code of Regulations — incorporated by reference to Exhibit 3.1(ii) to Registrant’s Quarterly Report onForm 10-Q for the quarter ended March 31, 2007 of Diebold, Incorporated (Commission FileNo. 1-4879) | ||
3 | .2 | Certificate of Amendment by Shareholders to Amended Articles of Incorporation of Diebold, Incorporated — incorporated by reference to Exhibit 3.2 to Registrant’sForm 10-Q for the quarter ended March 31, 1996 (Commission FileNo. 1-4879) | ||
3 | .3 | Certificate of Amendment to Amended Articles of Incorporation of Diebold, Incorporated — incorporated by reference to Exhibit 3.3 to Registrant’sForm 10-K for the year ended December 31, 1998 (Commission FileNo. 1-4879) | ||
4 | .1 | Rights Agreement dated as of February 11, 1999 between Diebold, Incorporated and The Bank of New York — incorporated by reference to Exhibit 4.1 to Registrant’s Registration Statement onForm 8-A, filed on February 2, 1999 (Commission FileNo. 1-4879) | ||
*10 | .1 | Form of Amended and Restated Employment Agreement | ||
*10 | .5(i) | Supplemental Employee Retirement Plan I as amended and restated January 1, 2008 | ||
*10 | .5(ii) | Supplemental Employee Retirement Plan II as amended and restated July 1, 2002 — incorporated by reference to Exhibit 10.5(ii) to Registrant’sForm 10-Q for the quarter ended September 30, 2002 (Commission FileNo. 1-4879) | ||
*10 | .5(iii) | Pension Restoration Supplemental Executive Retirement Plan | ||
*10 | .5(iv) | Pension Supplemental Executive Retirement Plan | ||
*10 | .5(v) | 401(k) Restoration Supplemental Executive Retirement Plan | ||
*10 | .5(vi) | 401(k) Supplemental Executive Retirement Plan | ||
*10 | .7(i) | 1985 Deferred Compensation Plan for Directors of Diebold, Incorporated — incorporated by reference to Exhibit 10.7 to Registrant’s Annual Report onForm 10-K for the year ended December 31, 1992 (Commission FileNo. 1-4879) | ||
*10 | .7(ii) | Amendment No. 1 to the Amended and Restated 1985 Deferred Compensation Plan for Directors of Diebold, Incorporated — incorporated by reference to Exhibit 10.7 (ii) to Registrant’sForm 10-Q for the quarter ended March 31, 1998 (Commission FileNo. 1-4879) | ||
*10 | .7(iii) | Amendment No. 2 to the Amended and Restated 1985 Deferred Compensation Plan for Directors of Diebold, Incorporated — incorporated by reference to Exhibit 10.7 (ii) to Registrant’sForm 10-Q for the quarter ended March 31, 2003 (Commission FileNo. 1-4879) |
*10 | ||||
* | ||||
.8(i) | 1991 Equity and Performance Incentive Plan as Amended and Restated as of February 7, 2001 — incorporated by reference to Exhibit 4(a) toForm S-8 Registration StatementNo. | |||
*10 | .8(ii) | Amendment No. 1 to the 1991 Equity and Performance Incentive Plan as Amended and Restated as of February 7, 2001 — incorporated by reference to Exhibit 10.8 (ii) to Registrant’sForm 10-Q for the quarter ended March 31, | ||
*10 | .8(iii) | Amendment No. 2 to the 1991 Equity and Performance Incentive Plan as Amended and Restated as of February 7, 2001 — incorporated by reference to Exhibit 10.8 (iii) to Registrant’sForm 10-Q for the quarter ended March 31, | ||
*10 | .8(iv) | Amendment No. 3 to the 1991 Equity and Performance Incentive Plan as Amended and Restated as of February 7, 2001 — incorporated by reference to Exhibit 10.8 (iv) to Registrant’sForm 10-Q for the quarter ended June 30, | ||
*10 | .9 | Long-Term Executive Incentive Plan — incorporated by reference to Exhibit 10.9 to Registrant’s Annual Report onForm 10-K for the year ended December 31, | ||
*10 | ||||
*10 | .11 | Annual Incentive Plan — incorporated by reference to Exhibit 10.11 to Registrant’s Annual Report onForm 10-K for the year ended December 31, | ||
*10 | .13(i) | Forms of Deferred Compensation Agreement and Amendment No. 1 to Deferred Compensation Agreement — incorporated by reference to Exhibit 10.13 to Registrant’s Annual Report onForm 10-K for the year ended December 31, | ||
*10 | .13(ii) | Section 162(m) Deferred Compensation Agreement (as amended and restated January 29, 1998) — incorporated by reference to Exhibit 10.13 (ii) to Registrant’sForm 10-Q for the quarter ended March 31, | ||
*10 | .14 | Deferral of Stock Option Gains Plan — incorporated by reference to Exhibit 10.14 to the Registrant’s Annual Report onForm 10-K for the year ended December 31, | ||
10 | .17(i) | Amended and Restated Loan Agreement dated as of April 30, 2003 among Diebold, Incorporated, the Subsidiary Borrowers, the Lenders and Bank One, N.A. — incorporated by reference to Exhibit 10.17 to Registrant’sForm 10-Q for the quarter ended June 30, | ||
10 | .17(ii) | First Amendment to Loan Agreement, dated as of April 28, 2004 among Diebold, Incorporated, the Subsidiary Borrowers, the Lenders and Bank One, N.A. — incorporated by reference to Exhibit 10.17 (ii) to Registrant’sForm 10-Q for the quarter ended June 30, | ||
10 | .17(iii) | Second Amendment to Loan Agreement, dated as of April 27, 2005 among Diebold, Incorporated, the Subsidiary Borrowers, the Lenders and JPMorgan Chase Bank N.A. (successor by merger to Bank One, N.A.) — incorporated by reference to Exhibit 10.1 to Registrant’sForm 8-K filed on May 3, | ||
10 | .17(iv) | Third Amendment to Loan Agreement, dated as of November 16, 2005 among Diebold, Incorporated, the Subsidiary Borrowers, the Lenders and JPMorgan Chase Bank N.A. (successor by merger to Bank One, N.A.) — incorporated by reference to Exhibit 10.1 to Registrant’sForm 8-K filed on November 22, | ||
10 | .17(v) | Fourth Amendment to Loan Agreement, dated November 27, 2006 among Diebold, Incorporated, the Subsidiary Borrowers, the Lenders and JPMorgan Chase Bank N.A. — incorporated by reference to Exhibit 10.17(v) to Registrant’sForm 10-K for the year ended December 31, 2006. (successor by merger to Bank One, N.A.) (Commission FileNo. 1-4879) | ||
10 | .20(i) | Transfer and Administration Agreement, dated as of March 30, 2001 by and among DCC Funding LLC, Diebold Credit Corporation, Diebold, Incorporated, Receivables Capital Corporation and Bank of America, National Association and the financial institutions from time to time parties thereto— incorporated by reference to Exhibit 10.20(i) to Registrant’sForm 10-Q for the quarter ended March 31, 2001 (Commission FileNo. 1-4879) | ||
10 | .20(ii) | Amendment No. 1 to the Transfer and Administration Agreement, dated as of May 2001, by and among DCC Funding LLC, Diebold Credit Corporation, Diebold, Incorporated, Receivables Capital Corporation and Bank of America, National Association and the financial institutions from time to time parties thereto — incorporated by reference to Exhibit | ||
*10 | .22 | Form of Non-Qualified Stock Option Agreement — incorporated by reference to Exhibit 10.22 to Registrant’s Quarterly Report onForm | ||
*10 | .23 | Form of Restricted Share Agreement — incorporated by reference to Exhibit 10.2 to Registrant’sForm 8-K filed on February 16, 2005 (Commission FileNo. 1-4879) | ||
*10 | .24 | Form of RSU Agreement |
*10 | .18(i) | Retirement and Consulting Agreement with Robert W. Mahoney — incorporated by reference to Exhibit 10.18 to Registrant’s Annual Report on Form 10-K for the year ended December 31, 2000. (Commission File No. 1-4879) | ||
*10 | .18(ii) | Extension of Retirement and Consulting Agreement with Robert W. Mahoney — incorporated by reference to Exhibit 10.18 (ii) to Registrant’s Form 10-Q for the quarter ended September 30, 2002. (Commission File No. 1-4879) | ||
*10 | .18(iii) | Extension of Retirement and Consulting Agreement with Robert W. Mahoney — incorporated by reference to Exhibit 10.18 (iii) to Registrant’s Form 10-Q for the quarter ended June 30, 2003. (Commission File No. 1-4879) | ||
*10 | .18(iv) | Extension of Retirement and Consulting Agreement with Robert W. Mahoney — incorporated by reference to Exhibit 10.18 (iv) to Registrant’s Form 10-Q for the quarter ended March 31, 2004. (Commission File No. 1-4879) | ||
*10 | .18(v) | Extension of Retirement and Consulting Agreement with Robert W. Mahoney — incorporated by reference to Exhibit 10.18 (v) to Registrant’s Form 10-Q for the quarter ended March 31, 2005. (Commission File No. 1-4879) | ||
*10 | .18(vi) | Extension of Retirement and Consulting Agreement with Robert W. Mahoney, dated March 7, 2006 — incorporated by reference to Exhibit 10.18(vi) to Registrant’s Form 10-K for the year ended December 31, 2005. (Commission FileNo. 1-4879) | ||
10 | .20(i) | Transfer and Administration Agreement, dated as of March 30, 2001 by and among DCC Funding LLC, Diebold Credit Corporation, Diebold, Incorporated, Receivables Capital Corporation and Bank of America, National Association and the financial institutions from time to time parties thereto — incorporated by reference to Exhibit 10.20 (i) to Registrant’s Form 10-Q for the quarter ended March 31, 2001. (Commission File No. 1-4879) | ||
10 | .20(ii) | Amendment No. 1 to the Transfer and Administration Agreement, dated as of May 2001, by and among DCC Funding LLC, Diebold Credit Corporation, Diebold, Incorporated, Receivables Capital Corporation and Bank of America, National Association and the financial institutions from time to time parties thereto — incorporated by reference to Exhibit 10.20 (ii) to Registrant’s Form 10-Q for the quarter ended March, 31, 2001. (Commission File No. 1-4879) | ||
*10 | .21 | Separation Agreement with Eric C. Evans — incorporated by reference to Exhibit 10.1 to Registrant’s Form 8-K filed on October 18, 2005. (Commission File No. 1-4879) | ||
*10 | .22 | Form of Non-Qualified Stock Option Agreement — incorporated by reference to Exhibit 10.22 to Registrant’s Form 10-Q for the quarter ended March 31, 2007. (Commission File No. 1-4879) | ||
*10 | .23 | Form of Restricted Share Agreement — incorporated by reference to Exhibit 10.2 to Registrant’s Form 8-K filed on February 16, 2005. (Commission File No. 1-4879) | ||
*10 | .24 | Form of RSU Agreement — incorporated by reference to Exhibit 10.24 to Registrant’s Form 10-Q for the quarter ended March 31, 2007. (Commission File No. 1-4879) | ||
*10 | .25 | Form of Performance Share Agreement — incorporated by reference to Exhibit 10.25 to Registrant’s Form 10-Q for the quarter ended March 31, 2007. (Commission File No. 1-4879) | ||
*10 | .26 | Diebold, Incorporated Annual Cash Bonus Plan — incorporated by reference to Exhibit A to Registrant’s Proxy Statement on Schedule 14A filed on March 16, 2005. (Commission File No. 1-4879) | ||
10 | .27 | Form of Note Purchase Agreement — incorporated by reference to Exhibit 10.1 to Registrant’s Form 8-K filed on March 8, 2006. (Commission File No. 1-4879) | ||
*10 | .28 | Employment Agreement between Diebold, Incorporated and Thomas W. Swidarski — incorporated by reference to Exhibit 10.1 to Registrant’s Form 8-K filed on May 1, 2006. (Commission File No. 1-4879) | ||
*10 | .29 | Employment [Change in Control] Agreement between Diebold, Incorporated and Thomas W. Swidarski — incorporated by reference to Exhibit 10.2 to Registrant’s Form 8-K filed on May 1, 2006. (Commission File No. 1-4879) | ||
*10 | .30 | Compromise Agreement between Diebold International Limited, Diebold, Incorporated and Daniel J. O’Brien — incorporated by reference to Exhibit 10.3 to Registrant’s Form 8-K filed on May 1, 2006. (Commission File No. 1-4879) | ||
*10 | .31 | Separation Agreement between Diebold, Incorporated and Michael J. Hillock, effective June 12, 2006 — incorporated by reference to Exhibit 10.1 to Registrant’s Form 8-K filed on June 16, 2006. (Commission File No. 1-4879) | ||
10 | .32 | Letter Agreement (including Term Note) dated as of November 27, 2006, between Diebold, Incorporated and PNC Bank, N.A. — incorporated by reference to Exhibit 10.31 to Registrant’s Annual Report on Form 10-K for the year ended December 31, 2006. (Commission File No. 1-4879) | ||
21 | .1 | Subsidiaries of the Registrant as of December 31, 2007. | ||
23 | .1 | Consent of Independent Registered Public Accounting Firm. | ||
24 | .1 | Power of Attorney. | ||
31 | .1 | Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||
31 | .2 | Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
32 | .1 | Certification of Principal Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350. | ||
32 | .2 | Certification of Principal Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350. |
*10 | .25 | Form of Performance Share Agreement | ||
*10 | .26 | Diebold, Incorporated Annual Cash Bonus Plan — incorporated by reference to Exhibit A to Registrants’ Proxy Statement on Schedule 14A filed on March 16, 2005 (Commission FileNo. 1-4879) | ||
10 | .27 | Form of Note Purchase Agreement — incorporated by reference to Exhibit 10.1 to Registrant’sForm 8-K filed on March 8, 2006 (Commission FileNo. 1-4879) | ||
*10 | .28 | Amended and Restated Employment Agreement between Diebold, Incorporated and Thomas W. Swidarski, as amended as of December 29, 2008 | ||
*10 | .29 | Amended and Restated Employment [Change in Control] Agreement between Diebold, Incorporated and Thomas W. Swidarski, as amended as of December 29, 2008 | ||
*10 | .30 | Form of Deferred Shares Agreement | ||
21 | .1 | Subsidiaries of the Registrant as of December 31, 2008 | ||
23 | .1 | Consent of Independent Registered Public Accounting Firm | ||
24 | .1 | Power of Attorney | ||
31 | .1 | Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||
31 | .2 | Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||
32 | .1 | Certification of Principal Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350 | ||
32 | .2 | Certification of Principal Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350 |
* | Reflects management contract or other compensatory arrangement required to be filed as an exhibit pursuant to Item 15(b) of this annual report. | |
(b) | Refer to thisForm 10-K for an index of exhibits. |
By: | /s/ Thomas W. Swidarski |
Signature | Title | Date | ||||
/s/ Thomas W. Swidarski Thomas W. Swidarski | President, Chief Executive Officer and Director (Principal Executive Officer) | |||||
/s/ Kevin J. Krakora Kevin J. Krakora | Executive Vice President and Chief Financial Officer (Principal Financial Officer) | |||||
/s/ Leslie A. Pierce Leslie A. Pierce | Vice President and Corporate Controller (Principal Accounting Officer) | |||||
* Phillip R. Cox | Director | |||||
/s/ Louis V. Bockius III Louis V. Bockius III | Director | |||||
/s/ Richard L. Crandall Richard L. Crandall | Director | |||||
* Gale S. Fitzgerald | Director | |||||
* Phillip B. Lassiter | Director | |||||
* John N. Lauer | Director | |||||
/s/ Eric J. Roorda Eric J. Roorda | Director | |||||
/s/ Henry D.G. Wallace Henry D.G. Wallace | Director | February 27, 2009 |
Signature | Title | Date | ||||
/s/ Alan J. Weber Alan J. Weber | Director |
* | The undersigned, by signing his name hereto, does sign and execute this Annual Report onForm 10-K pursuant to the Powers of Attorney executed by the above-named officers and directors of the Registrant and filed with the Securities and Exchange Commission on behalf of such officers and directors. |
*By: | /s/ Kevin J. Krakora |
Balance at | Balance at | |||||||||||||||||||||||||||||||
beginning of | Balance at | beginning of | Balance at | |||||||||||||||||||||||||||||
year | Additions | Deductions | end of year | year | Additions | Deductions | end of year | |||||||||||||||||||||||||
Year ended December 31, 2008 | ||||||||||||||||||||||||||||||||
Allowance for doubtful accounts | $ | 33,707 | $ | 16,336 | $ | 24,983 | $ | 25,060 | ||||||||||||||||||||||||
Year ended December 31, 2007 | ||||||||||||||||||||||||||||||||
Allowance for doubtful accounts | $ | 32,104 | $ | 22,425 | $ | 20,822 | $ | 33,707 | $ | 32,104 | $ | 22,425 | $ | 20,822 | $ | 33,707 | ||||||||||||||||
Year ended December 31, 2006 (As Restated) | ||||||||||||||||||||||||||||||||
Year ended December 31, 2006 | ||||||||||||||||||||||||||||||||
Allowance for doubtful accounts | $ | 28,242 | $ | 15,853 | $ | 11,991 | $ | 32,104 | $ | 28,242 | $ | 15,853 | $ | 11,991 | $ | 32,104 | ||||||||||||||||
Year ended December 31, 2005 (As Restated) | ||||||||||||||||||||||||||||||||
Allowance for doubtful accounts | $ | 9,673 | $ | 27,114 | $ | 8,545 | $ | 28,242 |
EXHIBIT NO. | DOCUMENT DESCRIPTION | |||
21 | .1 | Significant Subsidiaries of the Registrant | ||
23 | .1 | Consent of Independent Registered Public Accounting Firm | ||
24 | .1 | Power of Attorney | ||
31 | .1 | Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||
31 | .2 | Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||
32 | .1 | Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350. | ||
32 | .2 | Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350. |
EXHIBIT NO. | DOCUMENT DESCRIPTION | |||
10 | .1 | Form of Amended and Restated Employment Agreement | ||
10 | .5(i) | Supplemental Employee Retirement Plan I as amended and restated January 1, 2008 | ||
10 | .5(iii) | Pension Restoration Supplemental Executive Retirement Plan | ||
10 | .5(iv) | Pension Supplemental Executive Retirement Plan | ||
10 | .5(v) | 401(k) Restoration Supplemental Executive Retirement Plan | ||
10 | .5(vi) | 401(k) Supplemental Executive Retirement Plan | ||
10 | .7(iv) | Deferred Compensation Plan No. 2 for Directors of Diebold, Incorporated | ||
10 | .10 | Deferred Incentive Compensation Plan No. 2 | ||
10 | .24 | Form of RSU Agreement | ||
10 | .25 | Form of Performance Share Agreement | ||
10 | .28 | Amended and Restated Employment Agreement between Diebold, Incorporated and Thomas W. Swidarski, as amended as of December 29, 2008 | ||
10 | .29 | Amended and Restated Employment [Change in Control] Agreement between Diebold, Incorporated and Thomas W. Swidarski, as amended as of December 29, 2008 | ||
10 | .30 | Form of Deferred Shares Agreement | ||
21 | .1 | Significant Subsidiaries of the Registrant | ||
23 | .1 | Consent of Independent Registered Public Accounting Firm | ||
24 | .1 | Power of Attorney | ||
31 | .1 | Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||
31 | .2 | Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||
32 | .1 | Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350 | ||
32 | .2 | Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350 |