Exhibit 99.2
ACCO Brands Corporation
Consolidated Statements of Operations and
Reconciliation of Adjusted Results (Unaudited)
(In millions of dollars, except per share data)
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| Three Months Ended March 31, 2008 |
| Three Months Ended June 30, 2008 |
| Three Months Ended Sept. 30, 2008 |
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| Reported |
| Charges (A) |
| Adjusted |
| Reported |
| Charges (A) |
| Adjusted |
| Reported |
| Charges (A) |
| Adjusted |
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Net Sales |
| $ | 400.0 |
| $ | — |
| $ | 400.0 |
| $ | 414.0 |
| $ | — |
| $ | 414.0 |
| $ | 410.8 |
| $ | — |
| $ | 410.8 |
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Operating costs and expenses: |
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Cost of products sold |
| 279.1 |
| (3.2 | ) | 275.9 |
| 289.2 |
| (1.9 | ) | 287.3 |
| 285.0 |
| (1.8 | ) | 283.2 |
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Advertising, selling, general and administrative expenses |
| 103.0 |
| (2.4 | ) | 100.6 |
| 95.1 |
| 2.5 |
| 97.6 |
| 89.7 |
| 1.4 |
| 91.1 |
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Amortization of intangibles |
| 1.9 |
| — |
| 1.9 |
| 2.0 |
| — |
| 2.0 |
| 1.8 |
| — |
| 1.8 |
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Restructuring charges |
| 5.6 |
| (5.6 | ) | — |
| 1.6 |
| (1.6 | ) | — |
| 4.8 |
| (4.8 | ) | — |
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Goodwill and asset impairment charges |
| — |
| — |
| — |
| 14.1 |
| (14.1 | ) | — |
| 11.3 |
| (11.3 | ) | — |
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Total operating costs and expenses |
| 389.6 |
| (11.2 | ) | 378.4 |
| 402.0 |
| (15.1 | ) | 386.9 |
| 392.6 |
| (16.5 | ) | 376.1 |
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Operating income |
| 10.4 |
| 11.2 |
| 21.6 |
| 12.0 |
| 15.1 |
| 27.1 |
| 18.2 |
| 16.5 |
| 34.7 |
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Non-operating expense (income): |
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Interest expense, net |
| 16.1 |
| — |
| 16.1 |
| 15.8 |
| — |
| 15.8 |
| 16.8 |
| — |
| 16.8 |
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Equity in (earnings) of joint ventures |
| (1.7 | ) | — |
| (1.7 | ) | (1.8 | ) | — |
| (1.8 | ) | (1.9 | ) | — |
| (1.9 | ) | |||||||||
Other (income) expense, net |
| (0.9 | ) | — |
| (0.9 | ) | 2.4 |
| — |
| 2.4 |
| 0.5 |
| — |
| 0.5 |
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Income (loss) from continuing operations before income taxes and minority interest |
| (3.1 | ) | 11.2 |
| 8.1 |
| (4.4 | ) | 15.1 |
| 10.7 |
| 2.8 |
| 16.5 |
| 19.3 |
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Income tax expense (benefit) |
| (1.0 | ) | 3.2 |
| 2.2 |
| 1.0 |
| 1.9 |
| 2.9 |
| 17.6 |
| (11.1 | ) | 6.5 |
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Minority interest, net of tax |
| — |
| — |
| — |
| 0.4 |
| — |
| 0.4 |
| 0.2 |
| — |
| 0.2 |
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Income (loss) from continuing operations |
| (2.1 | ) | 8.0 |
| 5.9 |
| (5.8 | ) | 13.2 |
| 7.4 |
| (15.0 | ) | 27.6 |
| 12.6 |
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Income (loss) from discontinued operations, net of income taxes |
| 0.3 |
| (0.2 | ) | 0.1 |
| (40.9 | ) | 39.8 |
| (1.1 | ) | (17.7 | ) | 17.4 |
| (0.3 | ) | |||||||||
Net income (loss) |
| $ | (1.8 | ) | $ | 7.8 |
| $ | 6.0 |
| $ | (46.7 | ) | $ | 53.0 |
| $ | 6.3 |
| $ | (32.7 | ) | $ | 45.0 |
| $ | 12.3 |
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Per Share: |
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Basic earnings (loss) per share: |
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Income (loss) from continuing operations |
| $ | (0.04 | ) |
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| $ | 0.11 |
| $ | (0.11 | ) |
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| $ | 0.14 |
| $ | (0.28 | ) |
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| $ | 0.23 |
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Income (loss) from discontinued operations |
| 0.01 |
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| — |
| (0.75 | ) |
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| (0.02 | ) | (0.33 | ) |
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Basic earnings (loss) per share |
| $ | (0.03 | ) |
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| $ | 0.11 |
| $ | (0.86 | ) |
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| $ | 0.12 |
| $ | (0.60 | ) |
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| $ | 0.23 |
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Diluted earnings (loss) per share: |
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Income (loss) from continuing operations |
| $ | (0.04 | ) |
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| $ | 0.11 |
| $ | (0.11 | ) |
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| $ | 0.14 |
| $ | (0.28 | ) |
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| $ | 0.23 |
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Income (loss) from discontinued operations |
| 0.01 |
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| — |
| (0.75 | ) |
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| (0.02 | ) | (0.33 | ) |
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| (0.01 | ) | |||||||||
Diluted earnings (loss) per share |
| $ | (0.03 | ) |
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| $ | 0.11 |
| $ | (0.86 | ) |
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| $ | 0.12 |
| $ | (0.60 | ) |
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| $ | 0.23 |
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Weighted average number of shares outstanding: |
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Basic |
| 54.1 |
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| 54.1 |
| 54.2 |
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| 54.2 |
| 54.2 |
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| 54.2 |
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Diluted |
| 54.1 |
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| 54.5 |
| 54.2 |
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| 54.7 |
| 54.2 |
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| 54.5 |
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(A) Certain charges are excluded in order to provide a comparison of underlying results of operations, including restructuring charges, goodwill and asset impairment charges, restructuring-related charges included in cost of products sold and advertising, selling, general and administrative expenses, and certain non-recurring income tax items related to adjustments and impacting the Company’s effective tax rate.
ACCO Brands Corporation
Consolidated Statements of Operations and
Reconciliation of Adjusted Results (Unaudited)
(In millions of dollars, except per share data)
|
| Three Months Ended March 31, 2007 |
| Three Months Ended June 30, 2007 |
| Three Months Ended Sept. 30, 2007 |
| Three Months Ended Dec. 31, 2007 |
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| Excluded |
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| Excluded |
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| Reported |
| Charges (A) |
| Adjusted |
| Reported |
| Charges (A) |
| Adjusted |
| Reported |
| Charges (A) |
| Adjusted |
| Reported |
| Charges (A) |
| Adjusted |
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Net Sales |
| $ | 420.8 |
| $ | 1.7 |
| $ | 422.5 |
| $ | 439.0 |
| $ | — |
| $ | 439.0 |
| $ | 468.1 |
| $ | (0.9 | ) | $ | 467.2 |
| $ | 506.9 |
| $ | — |
| $ | 506.9 |
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Operating costs and expenses: |
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Cost of products sold |
| 296.3 |
| (3.0 | ) | 293.3 |
| 304.6 |
| (4.1 | ) | 300.5 |
| 324.4 |
| (3.0 | ) | 321.4 |
| 337.0 |
| (7.1 | ) | 329.9 |
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Advertising, selling, general and administrative expenses |
| 109.2 |
| (3.8 | ) | 105.4 |
| 109.3 |
| (4.6 | ) | 104.7 |
| 103.2 |
| (4.6 | ) | 98.6 |
| 111.8 |
| (3.3 | ) | 108.5 |
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Amortization of intangibles |
| 2.0 |
| — |
| 2.0 |
| 2.0 |
| — |
| 2.0 |
| 2.0 |
| — |
| 2.0 |
| 1.9 |
| — |
| 1.9 |
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Restructuring charges |
| 0.7 |
| (0.7 | ) | — |
| 2.4 |
| (2.4 | ) | — |
| 11.3 |
| (11.3 | ) | — |
| 6.6 |
| (6.6 | ) | — |
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Goodwill and asset impairment charges |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| 2.3 |
| (2.3 | ) | — |
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Total operating costs and expenses |
| 408.2 |
| (7.5 | ) | 400.7 |
| 418.3 |
| (11.1 | ) | 407.2 |
| 440.9 |
| (18.9 | ) | 422.0 |
| 459.6 |
| (19.3 | ) | 440.3 |
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Operating income (loss) |
| 12.6 |
| 9.2 |
| 21.8 |
| 20.7 |
| 11.1 |
| 31.8 |
| 27.2 |
| 18.0 |
| 45.2 |
| 47.3 |
| 19.3 |
| 66.6 |
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Non-operating expense (income): |
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Interest expense, net |
| 14.9 |
| — |
| 14.9 |
| 16.0 |
| — |
| 16.0 |
| 16.5 |
| — |
| 16.5 |
| 16.7 |
| — |
| 16.7 |
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Equity in (earnings) of joint ventures |
| (1.1 | ) | — |
| (1.1 | ) | (1.3 | ) | — |
| (1.3 | ) | (2.0 | ) | — |
| (2.0 | ) | (2.4 | ) | — |
| (2.4 | ) | ||||||||||||
Other (income) expense, net |
| 0.2 |
| — |
| 0.2 |
| (0.3 | ) | — |
| (0.3 | ) | (1.1 | ) | — |
| (1.1 | ) | 0.5 |
| — |
| 0.5 |
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Income (loss) from continuing operations before income taxes and minority interest |
| (1.4 | ) | 9.2 |
| 7.8 |
| 6.3 |
| 11.1 |
| 17.4 |
| 13.8 |
| 18.0 |
| 31.8 |
| 32.5 |
| 19.3 |
| 51.8 |
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Income tax expense (benefit) |
| (1.4 | ) | 2.9 |
| 1.5 |
| 1.4 |
| 3.9 |
| 5.3 |
| 4.7 |
| 5.7 |
| 10.4 |
| 11.9 |
| 3.4 |
| 15.3 |
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Minority interest, net of tax |
| 0.1 |
| — |
| 0.1 |
| 0.2 |
| — |
| 0.2 |
| 0.2 |
| — |
| 0.2 |
| 0.1 |
| — |
| 0.1 |
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Income (loss) from continuing operations |
| (0.1 | ) | 6.3 |
| 6.2 |
| 4.7 |
| 7.2 |
| 11.9 |
| 8.9 |
| 12.3 |
| 21.2 |
| 20.5 |
| 15.9 |
| 36.4 |
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Income (loss) from discontinued operations, net of income taxes |
| 0.3 |
| — |
| 0.3 |
| (0.2 | ) | — |
| (0.2 | ) | (0.2 | ) | 0.1 |
| (0.1 | ) | (34.8 | ) | 34.6 |
| (0.2 | ) | ||||||||||||
Net income (loss) |
| $ | 0.2 |
| $ | 6.3 |
| $ | 6.5 |
| $ | 4.5 |
| $ | 7.2 |
| $ | 11.7 |
| $ | 8.7 |
| $ | 12.4 |
| $ | 21.1 |
| $ | (14.3 | ) | $ | 50.5 |
| $ | 36.2 |
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Per Share: |
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Basic earnings (loss) per share: |
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Income (loss) from continuing operations |
| $ | — |
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| $ | 0.12 |
| $ | 0.09 |
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| $ | 0.22 |
| $ | 0.16 |
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| $ | 0.39 |
| $ | 0.38 |
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| $ | 0.67 |
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Income (loss) from discontinued operations |
| 0.01 |
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| 0.01 |
| — |
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| — |
| — |
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| — |
| (0.64 | ) |
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Basic earnings (loss) per share |
| $ | — |
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| $ | 0.12 |
| $ | 0.08 |
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| $ | 0.22 |
| $ | 0.16 |
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| $ | 0.39 |
| $ | (0.26 | ) |
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| $ | 0.67 |
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Diluted earnings (loss) per share: |
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Income (loss) from continuing operations |
| $ | — |
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| $ | 0.11 |
| $ | 0.09 |
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| $ | 0.22 |
| $ | 0.16 |
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| $ | 0.39 |
| $ | 0.37 |
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| $ | 0.66 |
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Income (loss) from discontinued operations |
| 0.01 |
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| 0.01 |
| — |
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| — |
| — |
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| — |
| (0.64 | ) |
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Diluted earnings (loss) per share |
| $ | — |
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| $ | 0.12 |
| $ | 0.08 |
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| $ | 0.21 |
| $ | 0.16 |
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| $ | 0.38 |
| $ | (0.26 | ) |
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| $ | 0.66 |
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Weighted average number of shares outstanding: |
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Basic |
| 53.9 |
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| 53.9 |
| 54.0 |
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| 54.0 |
| 54.0 |
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| 54.0 |
| 54.1 |
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| 54.1 |
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Diluted |
| 53.9 |
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| 54.9 |
| 55.1 |
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| 55.1 |
| 55.0 |
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| 55.0 |
| 54.8 |
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| 54.8 |
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(A) Certain charges are excluded in order to provide a comparison of underlying results of operations, including restructuring charges, goodwill and asset impairment charges, restructuring-related charges included in cost of products sold and advertising, selling, general and administrative expenses, and certain non-recurring income tax items related to adjustments and impacting the Company’s effective tax rate.
ACCO Brands Corporation
Consolidated Statements of Operations and
Reconciliation of Adjusted Results (Unaudited)
(In millions of dollars, except per share data)
|
| Year Ended December 31, 2007 |
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| Excluded |
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| Reported |
| Charges (A) |
| Adjusted |
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Net Sales |
| $ | 1,834.8 |
| $ | 0.8 |
| $ | 1,835.6 |
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Operating costs and expenses: |
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Cost of products sold |
| 1,262.3 |
| (17.2 | ) | 1,245.1 |
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Advertising, selling, general and administrative expenses |
| 433.5 |
| (16.3 | ) | 417.2 |
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Amortization of intangibles |
| 7.9 |
| — |
| 7.9 |
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Restructuring charges |
| 21.0 |
| (21.0 | ) | — |
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Goodwill and asset impairment charges |
| 2.3 |
| (2.3 | ) | — |
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Total operating costs and expenses |
| 1,727.0 |
| (56.8 | ) | 1,670.2 |
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Operating income |
| 107.8 |
| 57.6 |
| 165.4 |
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Non-operating expense (income): |
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Interest expense, net |
| 64.1 |
| — |
| 64.1 |
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Equity in (earnings) of joint ventures |
| (6.8 | ) | — |
| (6.8 | ) | |||
Other (income) expense, net |
| (0.7 | ) | — |
| (0.7 | ) | |||
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Income (loss) from continuing operations before income taxes and minority interest |
| 51.2 |
| 57.6 |
| 108.8 |
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Income tax expense (benefit) |
| 16.6 |
| 15.9 |
| 32.5 |
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Minority interest, net of tax |
| 0.6 |
| — |
| 0.6 |
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|
| |||
Income (loss) from continuing operations |
| 34.0 |
| 41.7 |
| 75.7 |
| |||
Income (loss) from discontinued operations, net of income taxes |
| (34.9 | ) | 34.7 |
| (0.2 | ) | |||
Net income (loss) |
| $ | (0.9 | ) | $ | 76.4 |
| $ | 75.5 |
|
|
|
|
|
|
|
|
| |||
Per Share: |
|
|
|
|
|
|
| |||
Basic earnings (loss) per share: |
|
|
|
|
|
|
| |||
Income (loss) from continuing operations |
| $ | 0.63 |
|
|
| $ | 1.40 |
| |
Income (loss) from discontinued operations |
| (0.65 | ) |
|
| — |
| |||
Basic earnings (loss) per share |
| $ | (0.02 | ) |
|
| $ | 1.40 |
| |
|
|
|
|
|
|
|
| |||
Diluted earnings (loss) per share: |
|
|
|
|
|
|
| |||
Income (loss) from continuing operations |
| $ | 0.62 |
|
|
| $ | 1.38 |
| |
Income (loss) from discontinued operations |
| (0.63 | ) |
|
| — |
| |||
Diluted earnings (loss) per share |
| $ | (0.02 | ) |
|
| $ | 1.37 |
| |
|
|
|
|
|
|
|
| |||
Weighted average number of shares outstanding: |
|
|
|
|
|
|
| |||
Basic |
| 54.0 |
|
|
| 54.0 |
| |||
Diluted |
| 55.0 |
|
|
| 55.0 |
| |||
(A) Certain charges are excluded in order to provide a comparison of underlying results of operations, including restructuring charges, goodwill and asset impairment charges, restructuring-related charges included in cost of products sold and advertising, selling, general and administrative expenses, and certain non-recurring income tax items related to adjustments and impacting the Company’s effective tax rate.