Exhibit 99.3
Explanatory Note
During the June 30, 2015 quarter, the Company adopted new accounting guidance regarding the simplification of the presentation of debt issuance costs. Revisions have been made within Item 6. Selected Financial Data table on line "Total assets," "Total debt, current and long-term portions," and "Total net debt to total capitalization" to reflect the change. Item 6. Selected Financial Data has not been revised to reflect events and or developments subsequent to February 20, 2015, the date the Company filed the 2014 Form 10-K. For a discussion of events and developments subsequent to the filing of the 2014 Form 10-K, please refer to the Company’s Securities and Exchange Commission (“SEC”) filings since that date.
Item 6. Selected Financial Data
DENTSPLY INTERNATIONAL INC. AND SUBSIDIARIES
SELECTED FINANCIAL DATA
(in thousands, except per share amounts, days and percentages)
The following selected financial data is qualified by reference to, and should be read in conjunction with, the Consolidated Financial Statements, including the notes thereto, and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included elsewhere in this Form 10-K.
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| | | | | | | | | | | | | | | | | | | |
| | Year ended December 31, |
| | 2014 | | 2013 | | 2012 | | 2011(a) | | 2010 |
| | | | | | | | | | |
| Statement of Operations Data: | | | | | | | | | |
| Net sales | $ | 2,922,620 |
| | $ | 2,950,770 |
| | $ | 2,928,429 |
| | $ | 2,537,718 |
| | $ | 2,221,014 |
|
| Net sales, excluding precious metal content (b) | 2,792,676 |
| | 2,771,728 |
| | 2,714,698 |
| | 2,332,589 |
| | 2,031,757 |
|
| Gross profit | 1,599,789 |
| | 1,577,412 |
| | 1,556,387 |
| | 1,273,440 |
| | 1,130,158 |
|
| Restructuring and other costs | 11,083 |
| | 13,356 |
| | 25,717 |
| | 35,865 |
| | 10,984 |
|
| Operating income | 445,600 |
| | 419,166 |
| | 381,939 |
| | 300,728 |
| | 380,273 |
|
| Income before income taxes | 404,373 |
| | 369,335 |
| | 330,679 |
| | 256,111 |
| | 357,656 |
|
| Net income | 322,913 |
| | 318,161 |
| | 318,489 |
| | 247,446 |
| | 267,335 |
|
| Net income attributable to DENTSPLY International | $ | 322,854 |
| | $ | 313,192 |
| | $ | 314,213 |
| | $ | 244,520 |
| | $ | 265,708 |
|
| | | | | | | | | | |
| Earnings per common share: | |
| | |
| | |
| | |
| | |
|
| Basic | $ | 2.28 |
| | $ | 2.20 |
| | $ | 2.22 |
| | $ | 1.73 |
| | $ | 1.85 |
|
| Diluted | $ | 2.24 |
| | $ | 2.16 |
| | $ | 2.18 |
| | $ | 1.70 |
| | $ | 1.82 |
|
| | | | | | | | | | |
| Cash dividends declared per common share | $ | 0.265 |
| | $ | 0.250 |
| | $ | 0.220 |
| | $ | 0.205 |
| | $ | 0.200 |
|
| | | | | | | | | | |
| Weighted Average Common Shares Outstanding: | |
| | |
| | |
| | |
| | |
|
| Basic | 141,714 |
| | 142,663 |
| | 141,850 |
| | 141,386 |
| | 143,980 |
|
| Diluted | 144,219 |
| | 144,965 |
| | 143,945 |
| | 143,553 |
| | 145,985 |
|
| | | | | | | | | | |
| Balance Sheet Data: | |
| | |
| | |
| | |
| | |
|
| Cash and cash equivalents | $ | 151,639 |
| | $ | 74,954 |
| | $ | 80,132 |
| | $ | 77,128 |
| | $ | 540,038 |
|
| Property, plant and equipment, net | 588,845 |
| | 637,172 |
| | 614,705 |
| | 591,445 |
| | 423,105 |
|
| Goodwill and other intangibles, net | 2,760,179 |
| | 3,076,919 |
| | 3,041,595 |
| | 2,981,163 |
| | 1,381,798 |
|
| Total assets | 4,646,459 |
| | 5,073,624 |
| | 4,966,831 |
| | 4,746,495 |
| | 3,257,051 |
|
| Total debt, current and long-term portions (d) | 1,261,907 |
| | 1,471,617 |
| | 1,515,532 |
| | 1,757,808 |
| | 610,869 |
|
| Equity | 2,322,198 |
| | 2,577,974 |
| | 2,249,443 |
| | 1,884,151 |
| | 1,909,912 |
|
| Return on average equity | 13.2 | % | | 13.0 | % | | 15.2 | % | | 12.9 | % | | 13.9 | % |
| Total net debt to total capitalization (c) | 32.3 | % | | 35.1 | % | | 39.0 | % | | 47.1 | % | | 3.6 | % |
| | | | | | | | | | |
| Other Data: | |
| | |
| | |
| | |
| | |
|
| Depreciation and amortization | $ | 129,077 |
| | $ | 127,903 |
| | $ | 129,199 |
| | $ | 85,035 |
| | $ | 65,912 |
|
| Cash flows from operating activities | 560,401 |
| | 417,848 |
| | 369,685 |
| | 393,469 |
| | 377,461 |
|
| Capital expenditures | 99,578 |
| | 100,345 |
| | 92,072 |
| | 71,186 |
| | 44,236 |
|
| Interest expense (income), net | 41,318 |
| | 41,502 |
| | 48,091 |
| | 35,577 |
| | 20,835 |
|
| Inventory days | 113 |
| | 114 |
| | 106 |
| | 100 |
| | 100 |
|
| Receivable days | 55 |
| | 56 |
| | 53 |
| | 54 |
| | 54 |
|
| Effective tax rate | 20.1 | % | | 14.1 | % | | 2.7 | % | | 4.3 | % | | 25.0 | % |
(a) Includes the results of the Astra Tech acquisition from September 1, 2011 through December 31, 2011.
(b) The presentation of net sales, excluding precious metal content, is considered a measure not calculated in accordance with US GAAP, and is therefore considered a non-US GAAP measure.
(c) The Company defines net debt as total debt, including current and long-term portions less deferred financing costs, less cash and cash equivalents and total capitalization as the sum of net debt plus equity.
(d) Total debt amounts shown are net of deferred financing costs.
