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UNITED STATES |
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SECURITIES AND EXCHANGE COMMISSION |
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Washington, DC 20549 |
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FORM 8-K |
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CURRENT REPORT |
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Pursuant to Section 13 or 15(d) of the |
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Securities Exchange Act of 1934 |
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Date of Report (Date of earliest event reported) |
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February 7, 2013 |
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GARTNER, INC. |
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(Exact name of registrant as specified in its charter) |
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DELAWARE |
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1-14443 |
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04-3099750 |
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(State
or Other Jurisdiction of |
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(Commission File Number) |
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(IRS
Employer |
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P.O. Box 10212 |
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56 Top Gallant Road |
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Stamford, CT 06902-7747 |
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(Address of Principal Executive Offices, including Zip Code) |
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(203) 316-1111 |
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(Registrant’s telephone number, including area code) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On February 7, 2013, Gartner, Inc. (the “Company”) announced financial results for the three and twelve months ended December 31, 2012. A copy of the Company’s press release is furnished as Exhibit 99.1.
In accordance with General Instruction B.2 of Form 8-K, the information in this Item 2.02 and in Exhibit 99.1 of this Current Report on Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.
(d) Exhibits
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EXHIBIT NO. |
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DESCRIPTION |
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99.1 |
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Press Release issued February 7, 2013 with respect to financial results for Gartner, Inc. for the three and twelve months ended December 31, 2012. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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Gartner, Inc. |
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Date: February 7, 2013 |
By: |
/s/ Christopher J. Lafond |
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Christopher J. Lafond |
EXHIBIT INDEX
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EXHIBIT NO. |
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DESCRIPTION |
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99.1 |
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Press Release issued February 7, 2013 with respect to financial results for Gartner, Inc. for the three and twelve months ended December 31, 2012. |
EXHIBIT 99.1
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Press Release |
CONTACT:
Brian
Shipman
Group Vice President, Investor Relations
+1 203 316 3659
brian.shipman@gartner.com
Gartner Reports Financial Results for Fourth Quarter and Full Year 2012
Contract Value $1,263 Million, up 14% YoY FX Neutral
Full Year 2012 Diluted EPS $1.73, Up 24% YOY
Full Year 2012 Normalized EBITDA $315.2 Million, Up 13% YOY
STAMFORD, Conn., February 7, 2013 — Gartner, Inc. (NYSE: IT), the leading provider of research and analysis on the global information technology industry, today reported results for fourth quarter and full year 2012 and provided its preliminary financial outlook for 2013.
For fourth quarter 2012, total revenue was $474.7 million, an increase of 11% year-over-year, or 12% excluding the foreign exchange impact. Fourth quarter 2012 net income was $58.8 million, an increase of 31%, while Normalized EBITDA was $97.0 million, an increase of 14%. Diluted income per share was $0.61 compared to $0.46 in fourth quarter 2011. Diluted Income Per Share Excluding Acquisition Adjustments, which excludes the impact of acquisition-related adjustments, was $0.63 per share for fourth quarter 2012 and $0.47 per share for fourth quarter 2011 (See “Non-GAAP Financial Measures” below for a discussion of Normalized EBITDA and Diluted Income Per Share Excluding Acquisition Adjustments).
For full year 2012, total revenue was $1,615.8 million, an increase of 10% over 2011, or 12% excluding the foreign exchange impact. Net income was $165.9 million in 2012, an increase of 21%. Normalized EBITDA was $315.2 million in 2012, an increase of 13% over 2011. Diluted income per share was $1.73 in 2012 compared to $1.39 in 2011, an increase of 24%. Diluted Income Per Share Excluding Acquisition Adjustments was $1.78 in 2012 and $1.43 in 2011.
Gene Hall, Gartner’s chief executive officer, commented, “Our 2012 results continued our trend of consistent, outstanding performance. Contract value growth has exceeded 14% for the last nine consecutive quarters and we continue to deliver double-digit growth across all of our key metrics. This occurred in a difficult global macro-economic environment.”
Business Segment Highlights
Research
Revenue for fourth quarter 2012 was $300.2 million, up 14% compared to fourth quarter 2011 and 15% excluding foreign exchange impact. The quarterly gross contribution margin was 68% in 2012 and 67% in 2011. Contract value at December 31, 2012 increased 14% on an FX neutral basis compared to year end 2011, and 13% as reported. Client and wallet retention rates for fourth quarter 2012 were 83% and 99%, respectively, compared to 82% and 99% in the fourth quarter of 2011.
-more-
Consulting
Revenue for fourth quarter 2012 was $81.9 million, a decrease of 8% compared to fourth quarter 2011 and a decrease of 7% when adjusted for the impact of foreign exchange. Gross contribution margin for fourth quarter 2012 was 36% compared to 41% in the prior year quarter. Both revenues and contribution margin were adversely impacted by lower than expected revenues from our Contract Optimization business. The balance of our Consulting businesses contributed solid growth in the quarter and for the full year 2012. Fourth quarter 2012 utilization was 67% compared to 68% in the fourth quarter of 2011. As of December 31, 2012, billable headcount was 503 and backlog was $102.7 million.
Events
Revenue for fourth quarter 2012 was $92.6 million, an increase of 21% compared to fourth quarter 2011. Excluding the foreign exchange impact, Events segment revenues increased 24%. Gross contribution margin was 51% in fourth quarter 2012 compared to 49% in the prior year quarter. The Company held 14 events with 22,548 attendees in the fourth quarter 2012, compared to 12 events and 20,500 attendees in fourth quarter 2011.
Cash Flow and Balance Sheet Highlights
The Company generated $280 million of operating cash flow in the full year 2012, an increase of 9% compared to 2011. Additions to property, equipment and leasehold improvements (“Capital Expenditures”) totaled $44 million in 2012, which included $17 million of Stamford headquarters renovation expenditures that are reimbursable by the facility landlord. Free Cash Flow for the full year 2012 was $237 million, an increase of 11% over 2011 (See “Non-GAAP Financial Measures” below for a discussion of Free Cash Flow).
At December 31, 2012, the Company had almost $300 million of cash and $347 million of borrowing capacity on its revolving credit facility. During 2012, the Company used $111 million of cash to repurchase shares and $10 million of cash on a net basis to complete the Ideas International Limited acquisition.
Financial Outlook for 2013
The Company also provided its preliminary financial outlook for 2013:
Projected Revenue
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($ in millions) |
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2013 Projected |
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% Change |
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Research |
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$ |
1,280 – |
1,300 |
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13% – |
14 |
% |
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Consulting |
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310 – |
325 |
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2% – |
7 |
% |
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Events |
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185 – |
195 |
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6% – |
12 |
% |
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Total Revenue |
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$ |
1,775 – |
1,820 |
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10% – |
13 |
% |
Projected Earnings and Cash Flow
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($ in millions, except per share data) |
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2013 Projected |
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% Change |
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Diluted Earnings Per Share |
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$ |
1.96 – |
$2.10 |
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13% – 21% |
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Normalized EBITDA (1) |
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$ |
350 – |
$ 370 |
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11% – 17% |
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Operating Cash Flow |
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$ |
296 – |
316 |
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6% – 13% |
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Capital Expenditures |
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(37) – |
(38 |
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Free Cash Flow (1) |
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$ |
259 – |
278 |
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10% – 17% |
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Gartner, Inc. |
page 2 |
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(1) |
See “Non-GAAP Financial Measures” below for a discussion of Normalized EBITDA and Free Cash Flow. |
Conference Call Information
Gartner has scheduled a conference call at 8:30 a.m. eastern time on Thursday, February 7, 2013 to discuss the Company’s financial results. The conference call will be available via the Internet by accessing the Company’s website at http://investor.gartner.com or by dial-in. The U.S. dial-in number is 888-713-4218 and the international dial-in number is 617-213-4870 and the participant passcode is 65782692. The question and answer session of the conference call will be open to investors and analysts only. A replay of the webcast will be available for approximately 90 days following the call.
Annual Meeting of Stockholders
Gartner will hold its 2013 Annual Meeting of Stockholders at 10:00 a.m. eastern time on Thursday, May 30, 2013 at the Company’s offices in Stamford, Connecticut.
About Gartner
Gartner, Inc. (NYSE: IT) is the world’s leading information technology research and advisory company. Gartner delivers the technology-related insight necessary for its clients to make the right decisions, every day. From CIOs and senior IT leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to technology investors, Gartner is a valuable partner to clients in over 13,300 distinct organizations. Through the resources of Gartner Research, Gartner Consulting and Gartner Events, Gartner works with every client to research, analyze and interpret the business of IT within the context of their individual role. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, U.S.A., and has 5,468 associates, including 1,405 research analysts and consultants, and clients in 85 countries. For more information, visit www.gartner.com.
Non-GAAP Financial Measures
Normalized EBITDA: Represents operating income excluding depreciation, accretion on obligations related to excess facilities, amortization, stock-based compensation expense, and acquisition related adjustments. We believe Normalized EBITDA is an important measure of our recurring operations as it excludes items that may not be indicative of our core operating results. Investors are cautioned that Normalized EBITDA is not a financial measure defined under generally accepted accounting principles and as a result is considered a non-GAAP financial measure. We provide this measure to enhance the user’s overall understanding of the Company’s current financial performance and the Company’s prospects for the future. It should not be construed as an alternative to any other measure of performance determined in accordance with generally accepted accounting principles.
Diluted Income Per Share Excluding Acquisition Adjustments: Represents diluted income per share excluding certain adjustments directly related to acquisitions, which consists of amortization of identifiable intangibles, non-recurring acquisition and integration charges such as legal, consulting, severance and other costs, and non-cash fair value adjustments on pre-acquisition deferred revenues. We believe Diluted Income Per Share Excluding Acquisition Adjustments is an important measure of our recurring operations as it excludes items that may not be indicative of our core operating results.
Free Cash Flow: Represents cash provided by operating activities plus cash acquisition and integration payments less additions to property, equipment and leasehold improvements (“Capital Expenditures”). We believe that Free Cash Flow is an important measure of the recurring cash generated by the Company’s
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Gartner, Inc. |
page 3 |
core operations that is available to be used to repurchase stock, repay debt obligations and invest in future growth through new business development activities or acquisitions.
Safe Harbor Statement
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Gartner, Inc. |
page 4 |
GARTNER, INC.
Condensed
Consolidated Statements of Operations
(Unaudited; in thousands, except per share amounts)
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Three
Months Ended |
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Twelve
Months Ended |
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2012 |
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2011 |
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2012 |
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2011 |
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Revenues: |
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Research |
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$ |
300,177 |
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$ |
262,633 |
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14 |
% |
$ |
1,137,147 |
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$ |
1,012,062 |
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12 |
% |
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Consulting |
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81,923 |
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88,640 |
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-8 |
% |
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304,893 |
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308,047 |
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-1 |
% |
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Events |
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92,649 |
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76,421 |
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21 |
% |
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173,768 |
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148,479 |
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17 |
% |
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Total revenues |
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474,749 |
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427,694 |
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11 |
% |
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1,615,808 |
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1,468,588 |
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10 |
% |
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Costs and expenses: |
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Cost of services and product development |
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200,214 |
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180,282 |
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11 |
% |
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659,067 |
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608,755 |
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8 |
% |
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Selling, general and administrative |
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186,216 |
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170,816 |
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9 |
% |
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678,843 |
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613,707 |
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11 |
% |
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Depreciation |
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6,991 |
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6,396 |
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9 |
% |
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25,369 |
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25,539 |
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-1 |
% |
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Amortization of intangibles |
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1,373 |
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737 |
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86 |
% |
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4,402 |
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6,525 |
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-33 |
% |
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Acquisition and integration charges |
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294 |
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— |
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100 |
% |
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2,420 |
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— |
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100 |
% |
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Total costs and expenses |
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395,088 |
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358,231 |
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10 |
% |
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1,370,101 |
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1,254,526 |
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9 |
% |
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Operating income |
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79,661 |
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69,463 |
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15 |
% |
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245,707 |
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214,062 |
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15 |
% |
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Interest expense, net |
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(2,302 |
) |
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(2,104 |
) |
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9 |
% |
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(8,859 |
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(9,967 |
) |
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-11 |
% |
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Other income (expense), net |
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550 |
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(417 |
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>100 |
% |
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(1,252 |
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(1,911 |
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-34 |
% |
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Income before income taxes |
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77,909 |
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66,942 |
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16 |
% |
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235,596 |
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202,184 |
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17 |
% |
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Provision for income taxes |
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19,086 |
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21,918 |
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-13 |
% |
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69,693 |
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65,282 |
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7 |
% |
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Net income |
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$ |
58,823 |
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$ |
45,024 |
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31 |
% |
$ |
165,903 |
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$ |
136,902 |
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21 |
% |
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Income per common share: |
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Basic |
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$ |
0.63 |
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$ |
0.48 |
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31 |
% |
$ |
1.78 |
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$ |
1.43 |
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24 |
% |
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Diluted |
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$ |
0.61 |
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$ |
0.46 |
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33 |
% |
$ |
1.73 |
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$ |
1.39 |
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24 |
% |
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Weighted average shares outstanding: |
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Basic |
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93,488 |
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94,691 |
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-1 |
% |
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93,444 |
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|
96,019 |
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-3 |
% |
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Diluted |
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95,716 |
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97,037 |
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-1 |
% |
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95,842 |
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98,846 |
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-3 |
% |
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BUSINESS SEGMENT DATA |
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(Unaudited; in thousands) |
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Revenue |
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Direct |
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Gross |
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Contribution |
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Three Months Ended 12/31/12 |
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Research |
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$ |
300,177 |
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$ |
97,381 |
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$ |
202,796 |
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68 |
% |
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Consulting |
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81,923 |
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|
52,556 |
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29,367 |
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36 |
% |
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Events |
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92,649 |
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45,397 |
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47,252 |
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51 |
% |
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TOTAL |
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$ |
474,749 |
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$ |
195,334 |
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$ |
279,415 |
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59 |
% |
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Three Months Ended 12/31/11 |
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Research |
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$ |
262,633 |
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$ |
86,917 |
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$ |
175,716 |
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|
67 |
% |
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Consulting |
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|
88,640 |
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|
52,623 |
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|
36,017 |
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41 |
% |
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Events |
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|
76,421 |
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|
38,689 |
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|
37,732 |
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49 |
% |
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|
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TOTAL |
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$ |
427,694 |
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$ |
178,229 |
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$ |
249,465 |
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|
58 |
% |
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Twelve Months Ended 12/31/12 |
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Research |
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$ |
1,137,147 |
|
$ |
362,805 |
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$ |
774,342 |
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|
68 |
% |
|
Consulting |
|
|
304,893 |
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|
195,640 |
|
|
109,253 |
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|
36 |
% |
|
Events |
|
|
173,768 |
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|
93,649 |
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|
80,119 |
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|
46 |
% |
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|
|
|
|
|
|
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|
||||||
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TOTAL |
|
$ |
1,615,808 |
|
$ |
652,094 |
|
$ |
963,714 |
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|
60 |
% |
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|
||||||
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|
|
Twelve Months Ended 12/31/11 |
|
|
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|
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|
|
|
|
|
|
|
|
|
Research |
|
$ |
1,012,062 |
|
$ |
329,926 |
|
$ |
682,136 |
|
|
67 |
% |
|
Consulting |
|
|
308,047 |
|
|
193,209 |
|
|
114,838 |
|
|
37 |
% |
|
Events |
|
|
148,479 |
|
|
82,214 |
|
|
66,265 |
|
|
45 |
% |
|
|
|
|
|
|
|
|
|
||||||
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TOTAL |
|
$ |
1,468,588 |
|
$ |
605,349 |
|
$ |
863,239 |
|
|
59 |
% |
|
|
|
|
|
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|
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|
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SELECTED STATISTICAL DATA
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|
|
|
|
|
|
|
December
31, |
|
December
31, |
|
||
|
|
|
|
|
||||
|
Research contract value |
|
$ |
1,262,865 |
(a) |
$ |
1,115,801 |
(a) |
|
Research client retention |
|
|
83 |
% |
|
82 |
% |
|
Research wallet retention |
|
|
99 |
% |
|
99 |
% |
|
Research client organizations |
|
|
13,305 |
|
|
12,427 |
|
|
Consulting backlog |
|
$ |
102,718 |
(a) |
$ |
100,564 |
(a) |
|
Consulting—quarterly utilization |
|
|
67 |
% |
|
68 |
% |
|
Consulting billable headcount |
|
|
503 |
|
|
481 |
|
|
Consulting—average annualized revenue per billable headcount |
|
$ |
445 |
(a) |
$ |
454 |
(a) |
|
Events—number of events for the quarter |
|
|
14 |
|
|
12 |
|
|
Events—attendees for the quarter |
|
|
22,548 |
|
|
20,500 |
|
|
|
|
|
|
|
|
|
|
|
(a) Dollars in thousands. |
|
SUPPLEMENTAL INFORMATION (in thousands, except per share amounts)
Reconciliation - Operating income to Normalized EBITDA (a):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
||||||||
|
|
|
|
|
|
|
||||||||
|
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
||||
|
|
|
|
|
|
|
||||||||
|
Net income |
|
$ |
58,823 |
|
$ |
45,024 |
|
$ |
165,903 |
|
$ |
136,902 |
|
|
Interest expense, net |
|
|
2,302 |
|
|
2,104 |
|
|
8,859 |
|
|
9,967 |
|
|
Other (income) expense, net |
|
|
(550 |
) |
|
417 |
|
|
1,252 |
|
|
1,911 |
|
|
Tax provision |
|
|
19,086 |
|
|
21,918 |
|
|
69,693 |
|
|
65,282 |
|
|
|
|
|
|
|
|
||||||||
|
Operating income |
|
$ |
79,661 |
|
$ |
69,463 |
|
$ |
245,707 |
|
$ |
214,062 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Normalizing adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense (b) |
|
|
8,357 |
|
|
8,114 |
|
|
36,378 |
|
|
32,864 |
|
|
Depreciation, accretion, and amortization (c) |
|
|
8,413 |
|
|
7,235 |
|
|
29,982 |
|
|
32,522 |
|
|
Acquisition and integration adjustments (d) |
|
|
584 |
|
|
— |
|
|
3,167 |
|
|
— |
|
|
|
|
|
|
|
|
||||||||
|
Normalized EBITDA |
|
$ |
97,015 |
|
$ |
84,812 |
|
$ |
315,234 |
|
$ |
279,448 |
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
(a) |
Normalized EBITDA is based on GAAP operating income adjusted for certain normalizing adjustments. |
|
|
|
|
(b) |
Consists of charges for stock-based compensation awards. |
|
|
|
|
(c) |
Includes depreciation expense, accretion on excess facilities accruals, and amortization of intangibles. |
|
|
|
|
(d) |
Includes charges and adjustments related to the acquisition of Ideas International. The charges consist of directly-related expenses for legal, consulting, and severance. Also included are non-cash fair value adjustments on pre-acquisition deferred revenues, which are being amortized ratably over the remaining life of the underlying contracts. |
|
|
|
|
|
Reconciliation - Diluted income per share to Diluted income per share excluding acquisition adjustments (a): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
||||||||||
|
|
|
|
|||||||||||
|
|
|
2012 |
|
2011 |
|
||||||||
|
|
|
|
|||||||||||
|
|
|
After-tax |
|
EPS |
|
After-tax |
|
EPS |
|
||||
|
|
|
|
|
|
|
||||||||
|
Diluted income per share |
|
$ |
58,823 |
|
$ |
0.61 |
|
$ |
45,024 |
|
$ |
0.46 |
|
|
Acquisition adjustments, net of tax effect (b): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangibles (c) |
|
|
877 |
|
|
0.01 |
|
|
472 |
|
|
0.01 |
|
|
Acquisition and integration adjustments (d) |
|
|
400 |
|
|
0.01 |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
|
||||||||
|
Diluted income per share excluding acquisition adjustments (e) |
|
$ |
60,100 |
|
$ |
0.63 |
|
$ |
45,496 |
|
$ |
0.47 |
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, |
|
||||||||||
|
|
|
|
|
||||||||||
|
|
|
2012 |
|
2011 |
|
||||||||
|
|
|
|
|
||||||||||
|
|
|
After-tax |
|
EPS |
|
After-tax |
|
EPS |
|
||||
|
|
|
|
|
|
|
||||||||
|
Diluted income per share |
|
$ |
165,903 |
|
$ |
1.73 |
|
$ |
136,902 |
|
$ |
1.39 |
|
|
Acquisition adjustments, net of tax effect (b): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangibles (c) |
|
|
2,775 |
|
|
0.03 |
|
|
4,049 |
|
|
0.04 |
|
|
Acquisition and integration adjustments (d) |
|
|
2,169 |
|
|
0.02 |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
|
||||||||
|
Diluted income per share excluding acquisition adjustments (f) |
|
$ |
170,847 |
|
$ |
1.78 |
|
$ |
140,951 |
|
$ |
1.43 |
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
(a) |
Diluted income per share excluding acquisition adjustments is based on GAAP diluted income per share adjusted for the per share impact of acquisition adjustments, net of tax effect. |
|
|
|
|
(b) |
The effective tax rates on the acquisition adjustments were 34.5% and 34.6% for the three and twelve months ended December 31, 2012, respectively, and 39.5% for both the three and twelve months ended December 31, 2011. |
|
|
|
|
(c) |
Consists of non-cash amortization charges related to acquired intangibles. |
|
|
|
|
(d) |
Includes charges and adjustments related to the acquisition of Ideas International. The charges consist of directly-related expenses for legal, consulting, and severance. Also included are non-cash fair value adjustments on pre-acquisition deferred revenues, which are being amortized ratably over the remaining life of the underlying contracts. |
|
|
|
|
(e) |
Based on fully diluted shares of 95.7 million and 97.0 million for the three months ended December 31, 2012 and 2011, respectively. |
|
|
|
|
(f) |
Based on fully diluted shares of 95.8 million and 98.8 million for the twelve months ended December 31, 2012 and 2011, respectively. |
SUPPLEMENTAL INFORMATION continued (in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Selected Balance Sheet Data |
|
||||
|
|
|
|
|
||||
|
|
|
December 31, |
|
||||
|
|
|
|
|
||||
|
|
|
2012 |
|
2011 |
|
||
|
|
|
|
|
||||
|
|
|
|
|
||||
|
Cash and cash equivalents |
|
$ |
299,852 |
|
$ |
142,739 |
|
|
Fees receivable, net |
|
|
463,968 |
|
|
421,033 |
|
|
Total assets |
|
|
1,621,277 |
|
|
1,379,872 |
|
|
Deferred revenues |
|
|
692,237 |
|
|
611,647 |
|
|
Total current and long-term debt |
|
|
205,000 |
|
|
200,000 |
|
|
Total liabilities |
|
|
1,314,604 |
|
|
1,198,088 |
|
|
Total stockholders’ equity |
|
|
306,673 |
|
|
181,784 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Cash Flow Data |
|
||||
|
|
|
|
|
||||
|
|
|
Twelve Months Ended |
|
||||
|
|
|
|
|
||||
|
|
|
2012 |
|
2011 |
|
||
|
|
|
|
|
||||
|
|
|||||||
|
Cash provided by operating activities |
|
$ |
279,814 |
|
$ |
255,566 |
|
|
Cash paid for capital expenditures |
|
|
44,337 |
(a) |
|
41,954 |
(a) |
|
Cash paid for treasury stock |
|
|
111,306 |
|
|
211,986 |
|
|
Cash paid for acquisitions, net |
|
|
10,336 |
|
|
— |
|
|
Cash receipts (payments) on debt, net |
|
|
5,000 |
|
|
(20,156 |
) |
(a) Includes expenditures related to the
renovation of our Stamford headquarters facility.
These amounts are reimbursable
by our landlord.
|
|
Reconciliation
- Cash Provided by Operating Activities to Free Cash Flow (a):
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended |
|
||||
|
|
|
|
|
||||
|
|
|
2012 |
|
2011 |
|
||
|
|
|
|
|
||||
|
Cash provided by operating activities |
|
$ |
279,814 |
|
$ |
255,566 |
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
Cash acquisition and integration payments |
|
|
1,437 |
|
|
— |
|
|
Cash paid for capital expenditures |
|
|
(44,337 |
) |
|
(41,954 |
) |
|
|
|
|
|
||||
|
Free Cash Flow |
|
$ |
236,914 |
|
$ |
213,612 |
|
|
|
|
|
|
||||
|
|
|
|
(a) |
Free cash flow is based on cash provided by operating activities determined in accordance with |
|
|
GAAP plus cash acquisition and integration payments less additions to capital expenditures. |