Stock: LKQ Corporation

Recommendation: Buy
Team 10
Ziv Israel
Owen Gilmore
Jerry Jiang

November 5-7, 2014

presented by

RECOMMENDATION: BUY
Summary Valuation
Current Price: 28.94
Target Price: 35.2
Est. Timing: 1-2 Years
Upside: 22%

Perpetuity Growth Method

Weighted average cost of capital:
Net present value of free cash flow
Terminal growth rate
Terminal value

EBITDA Multiple Method

8.0%

Weighted average cost of capital:

$691

4.0%

$8,405

Present value of the terminal value

Implied EBITDA multiple
Enterprise value
Plus: Net cash*
Equity value

$691

Terminal multiple

10.5x

Terminal value

$7,446

10.5x

$8,137
$2,458

$10,595

8.0%

Net present value of free cash flow

$8,405

Present value of the terminal value

7,446

4.0%

Implied perpetuity growth

Enterprise value
Plus: Net cash

$8,137
$2,458

Equity value

$10,595

Diluted shares:

300.8

Diluted shares:

300.8

Equity Value Per Share

$35.22

Equity Value Per Share

$35.22

Price Target

$35.20

Current share price:

$28.94

Implied upside

22%

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Company Description
LKQ provides replacement parts, components and systems
needed to repair cars and trucks. Buyers of vehicle replacement
products have the option to purchase from primarily five sources:
new products produced by original equipment manufacturers
("OEMs"); new products produced by companies other than the
OEMs, which are sometimes referred to as aftermarket products;
recycled products obtained from salvage vehicles; used products
that have been refurbished; and used products that have been
remanufactured.

Main customer body shops (collision and

mechanical repair shops), new and used car
dealerships, as well as to retail consumers (self
service)
Main Supplier aftermarket come from automotive
parts manufacturers and distributers. Recycled
come from purchasing salvage vehicles, typically
severely damaged in collisions, dismantling and
inventorying the parts. Also buy parts in auctions or
through trade ins.

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Value Proposition
Why buy alternative parts?
They are simply cheaper.
Historically, the distribution
channels for aftermarket and
refurbished products have been
distinct and separate from those
for recycled and
remanufactured products
despite serving the same
customer segment

LKQ offers an expansive distribution network, responsive service and quick

delivery. The breadth of their alternative parts offerings allows them to serve as a
"one-stop" solution for our customers looking for the most cost effective way to
provide quality repairs.
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Value Proposition Strategic Locations

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Addressable Market

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Strong Acquisition History

Throughout its history, LKQ has purchased
and successfully integrated more than 170
companies.
Management focuses on profitable businesses
with strong management trading at 4-5x
EBITDA.
In 2013 alone LKQ acquired Sator, plus an
additional 19 acquisitions, including 10
wholesale businesses in North America, 7
wholesale businesses in our European
segment and 2 self service operations.

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Strong Acquisition History

Sator

Keystone
Specialities

Euro Car Parts

ATK Vege

Transwheel
Bodymaster
Auto

Keystone
Automatic
Industries

LKQ

Metro
East
Salvage

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Strong Acquisition History

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Important Financial Ratios

Ratios
12 months
Dec-31-2009

12 months
Dec-31-2010

12 months
Dec-31-2011

12 months
Dec-31-2012

12 months
Dec-31-2013

LTM
12 months
Sep-30-2014

Profitability
Return on Assets %
Return on Capital %
Return on Equity %
Return on Common Equity %

7.5%
8.4%
11.6%
11.6%

8.6%
9.8%
12.9%
12.9%

8.4%
10.0%
13.8%
13.8%

7.6%
9.3%
14.5%
14.5%

8.2%
10.0%
14.4%
14.4%

8.2%
10.0%
15.4%
15.4%

Margin Analysis
Gross Margin %
SG&A Margin %
EBITDA Margin %
EBITA Margin %
EBIT Margin %
Net Income Margin %

45.3%
32.2%
13.3%
11.6%
11.4%
6.2%

44.3%
30.6%
13.8%
12.3%
12.1%
6.8%

42.6%
29.8%
13.0%
11.5%
11.3%
6.4%

41.4%
29.6%
12.0%
10.5%
10.3%
6.3%

41.0%
28.7%
12.3%
10.9%
10.7%
6.2%

39.7%
27.8%
12.0%
10.7%
10.2%
5.9%

Short Term Liquidity

Current Ratio
Quick Ratio
Avg. Days Sales Out.
Avg. Days Inventory Out.
Avg. Days Payable Out.
Avg. Cash Conversion Cycle

4.2x
1.6x
26.8
116.7
18.1
125.3

3.7x
1.3x
25.4
116.5
15.7
126.1

2.9x
0.8x
26.4
119.5
24.7
121.2

2.8x
0.8x
26.3
124.0
30.5
119.8

2.7x
0.9x
27.8
120.8
32.8
115.8

3.0x
1.1x
30.0
112.1
30.2
112.0

For the Fiscal Period Ending

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Investment Thesis
T
E
R
R
I
F
I
C

1) International Expansion

O
P
P
O
R
T
U
N
I
T
Y

3) Strong Moat From Advanced

Technology

2) Strong Industry Tailwinds

4) Attractive Entry Point

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Thesis #1 International Expansion

Entry into Europe was extremely profitable for LKQ
The UK market reached $70mil Revenue in under two
years with LKQs efforts driving APU growth by 28%
ECP achieved organic revenue growth of 10.4% in the
last 12 months
Unipart Automotive, ECPs
largest competitor in Europe
went into bankruptcy in 2014.
ECP bought 27 of its former
branches. Target of 190
branches total by year-end.
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Thesis #1 International Expansion

Currently, 3 Locations in France, compared to 60 in
Netherlands (going up to 75-80 by 2015)
In August 2013 went into agreement with Suncorp
Group, a leading general insurance group in Australia
and New Zealand.
Parts are 38% of US collision market, 9% in Europe.
The market is prime to adopt more alternative parts in
Europe, as the EU recently enacted a law prohibiting
automakers from voiding warranties if aftermarket
parts are used. LKQ is already prepared for this with
agreements with insurance companies.
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Thesis #2 Strong Industry Tailwinds

Sales of new vehicles have increased since 2010 and are projected
to continue to increase over the next five years, which should
result in a greater volume of salvage vehicles at auction. Higher
supply means that LKQ can purchase inventory for cheaper.

More miles are being

driven each year - means
more accidents, and more
business for LKQ

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Thesis #2 Strong Industry Tailwinds

In 2000, approximately 9% of accident claims resulted
in a total loss; by 2013, this percentage increased to
almost 14%.
Industry reports indicate that over half of claims paid
for by the top insurance companies in 2012 were paid
through a DRP, compared to 42% in 2009.
Recent market share gains by aggressive alternative
parts users Progressive and Geico.
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Industry Analysis (FIVE FORCES)

Bargaining Power of
Suppliers: Medium
In 2013, approximately
46% of LKQs
aftermarket purchases
were made from their
top five vendors, with
their largest vendor
providing approximately
12% of our inventory.

Threat of new Entrants: Low

Advanced IT systems are extremely
hard to copy
Supply Chain Management is critical
Regulation is high
LKQ buys all of their competitors

Rivalry Among Existing Firms:

Low
LKQ Controls the industry
The rest of the industry is
extremely fragmented

Bargaining Power of
Buyers: Low
No single customer
accounted for 2% or more
of revenue in 2013.

Threat of Substitute Products:

Medium
More advanced Accident
Prevention Systems, Self
driving cars

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Thesis #3 Strong Moat From Advanced

Technology
LKQ has long invested in proprietary information
technology systems which give it a strong and
sustainable moat
Inventory management systems (LKQX) assists salespeople with updated availability and pricing. Bidders in
auctions equipped with a proprietary software that
compares the vehicles at the salvage auctions to their
current inventory, historical demand and recent average
selling prices.
Utilizes proprietary information systems in identifying
high demand for a product and immediately make
purchase recommendations with inventory is running
low.
Importing takes 40 days, inventory management is key.
Automated systems estimate demand for their products by researching sales trends of cars and estimating
the parts needed as well as track new car designs.
DRP (Direct Repair Program) agreement between the bodyshops and the insurance companies.
Insurance companies demand quality, timeliness and cost.
LKQ offer our repair shop customers access to our proprietary system, Keyless, which provides a link
between their estimating systems and our inventory to identify the availability of alternative products for use
in their repair. This data also helps insurance companies monitor the body shops' compliance with its DRP
product.

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Thesis #4 Attractive Entry Point

The market is (as always) focused on the short term
Stock was hammered by a negative earnings surprise
earlier this year (Down 20% on a 7.14% negative
surprise)
Analysts focus on the recent decrease gross margin
(from 41% to 39.7%). Do not acknowledge that this is
due to purchase of new lower net margin, higher gross
margin businesses (Specialty Acquisitions)
New entry into Europe through acquisitions produces
integration costs which lower earnings in the short
term but will increase them in the long run
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Thesis #4 Attractive Entry Point

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Valuation Revenue Breakdown

Data
US
Number of Vehicles
3-10 years
3-7 years
New
Total (Mil)
LKQ Market Share
Number of Vehicles (LKQ Market Share)
Revenue (Bn)
Miles Driven (Bn)
Miles Driven % of LKQ Market Share
Revenue per Miles Driven
Miles Driven per Car * Market Share
LKQ US Revenue
Miles per car
Europe
Number of Vehicles
Miles Driven
TAM Revenue
LKQ Market Share
LKQ European Revenue

2013

2014

2015

2016

2017

97
48
16
161
37%
59.57

95
49
17
161
38%
61.18

94
54
17
165
39%
62.7

94
59
17
170
40%
64.6

98
63
18
179
41%
68.02

3,802.9
3020
1117.4
3.40
1.259248013

4,118.1
3080
1170.4
3.52
1.337049935

3130
1220.7

3180
1272

3200
1312

105
66
18
189 From Company Presentation
42%
71.82 From Company Presentation
From IBIS World
3240
1360.8

3,802.93

4,118.11

4,295.10

4,475.60

4,616.34

4,788.05

18.7578

19.1304

18.9697

18.7059

17.8771

17.1429

261
4896
16,662.91
7%
1,166.40

269
5046
17,173.42
9%
1,545.61

277
5196
17,683.93
13%
2,298.91

285
5346
18,194.43
16%
2,911.11

800

800

Speciality
Total Revenue

2018

796.4
4,969.33

6,460.15

7,394.01

8,186.71

294
303
5515
5684
18,769.60 19,344.77
20%
25% Requires Acquisitions
3,753.92
4,836.19
800
9,170.26

800
10,424.24

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Discounted Cash Flow

Historical
All Numbers in $ Millions
Revenues
Rev % Growth
EBIT Margin
EBIT
Taxes (Using historical rate of 34%)
Tax Adjusted EBIT

12/2009

12/2010

12/2011

12/2012

12/2013

2,048

2,470

3,270

4,123

5,063

20.6%

32.4%

26.1%

22.8%

11.72%
290
103
187

10.84%
354
126
229

10.69%
441
148
293

38
51
56
91

41
133
61
33

55
165
86
32

5.7%
17.9%

20.6%
21.9%
17.0%
30.6%
10.0%
-63.3%

11.7%
1.3%
35.6%

11.60%
238
78
159

Depr. & Amort. (Same rate as Rev)

Change in Op. Work. Cap.
Capital Expenditures (Historical rate of 8%)
Free Cash Flow
Growth Analysis
Revenues Growth
EBIT Growth
Tax Adjusted EBIT Growth
Working Capital (Operating) Growth
Capital Expenditures Growth
Free Cash Flow Growth
Margin Analysis
EBIT % of Revenues
Free Cash Flow % of Revenues
Tax Rate

Projected

-16.5%

11.6%
4.4%
32.9%

12/2014

12/2015

12/2016

12/2017

12/2018

6,460

7,394

8,187

9,170

10,424

27.6%

14.5%

10.7%

12.0%

13.7%

10.41%
527
164
363

10.5%
678
229
450

11.0%
822
277
545

11.5%
997
336
661

11.5%
1,209
408
801

11.5%
1,465
494
971

70
175
88
100

86
105
90
255

110
240
97
222

126
297
105
269

140
368
113
320

157
455
121
381

178
563
131
455

32.4%
22.4%
22.7%
28.9%
40.7%
-2.5%

26.1%
24.3%
27.8%
23.9%
2.1%
206.7%

22.8%
19.6%
24.0%
11.5%
2.2%
155.7%

27.6%
28.7%
23.9%
23.7%
7.7%
-12.6%

14.5%
21.2%
21.2%
23.7%
7.7%
21.1%

10.7%
21.2%
21.2%
23.7%
7.7%
18.8%

12.0%
21.2%
21.2%
23.7%
7.7%
19.1%

13.7%
21.2%
21.2%
23.7%
7.7%
19.5%

10.8%
1.0%
35.4%

10.7%
2.4%
33.6%

10.4%
5.0%
31.2%

10.5%
3.4%
33.7%

11.1%
3.6%
33.7%

12.2%
3.9%
33.7%

13.2%
4.2%
33.7%

14.1%
4.4%
33.7%

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Discounted Cash Flow Sensitivity Analysis

Disc. Rate

Upside/Downside Ratio is
approximately 6:1
(Asymmetric Return)

5.5%
7.0%
8.0%
9.0%
10.5%

Equity Value Per Share

8.50x

9.50x

10.50x

11.50x

12.50x

32.4
30.1
28.6
27.2
25.2

36.2
33.5
31.9
30.4
28.2

39.9
37.0
35.2
33.5
31.2

43.6
40.5
38.5
36.7
34.1

47.3
44.0
41.9
39.9
37.1

Disc. Rate

Upside
8.50x

9.50x 10.50x

11.50x

12.50x

5.5%

12%

25%

38%

51%

64%

7.0%

4%

16%

28%

40%

52%

8.0%

-1%

10%

22%

33%

45%

9.0%

-6%

5%

16%

27%

38%

10.5%

-13%

-3%

8%

18%

28%

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Relative Value (Car Parts Wholesale)

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Investment Catalysts
1) Future acquisitions will grab the markets attention
LKQ currently produces $255mil in Free Cash Flow
2) Rebound in EBIT margin and earnings after European
integration is complete
3) Entry into France and Germany, two huge markets
will increase revenues substantially

4) Rebound in scrap metal prices will increase revenue

from scrap sales

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Investment Summary
LKQs international expansion is just starting, and its going
strong
Strong industry tailwinds signals a bright future for LKQs core
business
Strong moat from advanced information technology systems
prevents new entrants from seizing market share

Attractive Entry Point provides the best opportunity for gains

Simply an Excellent Opportunity!
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Investment Risks / Mitigants

Risk: Technology Risk More advanced Accident Prevention Systems
(reduces collisions by up to 27% by NCAP estimates), Self driving cars
Mitigant: Will take considerable time to be implemented, negated by more
cars bought each year, more used cars used
Risk: Competition from Internet Based Vehicle Product Providers
Mitigant: Brand assurance is important, sites have to build trust
Risk: Metal Prices continue to deteriorate, Oil prices will bounce back
Mitigant: Hedging using futures mitigates some of the risk of oil, scrap sale is
a small part of the business
Risk: Increased Currency risk from international expansion
Mitigant: Keeping foreign currency and reinvesting overseas
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APPENDIX
LKQ Company

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MANAGEMENT TEAM
Name/Position
Robert L. Wagman
President & Chief Executive
Officer

John S. Quinn
Executive Vice President and
Chief Financial Officer

Victor M. Casini
Senior Vice President, General
Counsel

Background
Robert L. Wagman became our President and Chief Executive Officer
on January 1, 2012. He was elected to our Board of Directors on
November 7, 2011. Mr. Wagman was LKQs President and Co-Chief
Executive Officer from January 1, 2011 to January 1, 2012
John S. Quinn has been our Executive Vice President and Chief
Financial Officer since November 2009. Prior to joining our Company,
he was the Senior Vice President, Chief Financial Officer and Treasurer
of Casella Waste Systems, Inc., a company in the solid waste
management services industry from January 2009.
Victor M. Casini has been our Vice President, General Counsel and
Corporate Secretary from our inception in February 1998. In March
2008, he was elected Senior Vice President. Mr. Casini was a member
of our Board of Directors from May 2010 until May 2012.
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Ownership Summary

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Quantifying the Downside

Data
US
Number of Vehicles
3-10 years
3-7 years
New
Total (Mil)
LKQ Market Share
Number of Vehicles (LKQ Market Share)
Revenue (Bn)
Miles Driven (Bn)
Miles Driven % of LKQ Market Share
Revenue per Miles Driven
Miles Driven per Car * Market Share
LKQ US Revenue
Miles per car
Europe
Number of Vehicles
Miles Driven
TAM Revenue
LKQ Market Share
LKQ European Revenue

2013

2014

2015

2016

2017

2018

97
48
16
161
37%
59.57

95
49
17
161
38%
61.18

94
54
17
165
39%
62.7

94
59
17
170
40%
64.6

98
63
18
179
41%
68.02

105
66
18
189
42%
71.82

3,802.9
3020
1117.4
3.40
1.259248013

4,118.1
3080
1170.4
3.52
1.337049935

3130
1220.7

3180
1272

3200
1312

3240
1360.8

3,802.93

4,118.11

4,295.10

4,475.60

4,616.34

4,788.05

18.7578

19.1304

18.9697

18.7059

17.8771

17.1429

261
4896
16,662.91
7%
1,166.40

269
5046
17,173.42
9%
1,545.61

277
5196
17,683.93
12%
2,122.07

285
5346
18,194.43
15%
2,729.16

800

800

Speciality
Total Revenue

796.4
4,969.33

6,460.15

7,217.17

8,004.76

294
303
5515
5684
18,769.60 19,344.77
17%
20%
3,190.83
3,868.95
800
8,607.17

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800
9,457.00

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Quantifying the Downside

Disc. Rate

5.5%
7.0%
8.0%
9.0%
10.5%

Equity Value Per Share

8.50x

9.50x

10.50x

11.50x

12.50x

25.2
23.4
22.2
21.1
19.5

28.2
26.2
24.9
23.6
21.9

31.2
29.0
27.5
26.2
24.3

34.3
31.8
30.2
28.7
26.7

37.3
34.6
32.9
31.3
29.1

Disc. Rate

Downside
8.50x

9.50x 10.50x

11.50x

12.50x

5.5%

-13%

-2%

8%

18%

29%

7.0%

-19%

-10%

0%

10%

19%

8.0%

-23%

-14%

-5%

4%

14%

9.0%

-27%

-18%

-10%

-1%

8%

10.5%

-33%

-24%

-16%

-8%

0%

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Regional Distribution Improves Fulfillment

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Capitalization and Liquidity

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HISTORICAL MULTIPLES

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Earnings Estimates and Surprises

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Income Statement
12 m onths
Dec-31-2009
USD

12 m onths
Dec-31-2010
USD

12 m onths
Dec-31-2011
USD

12 m onths
Dec-31-2012
USD

12 m onths
Dec-31-2013
USD

LTM
12 m onths
Sep-30-2014
USD

Revenue
Other Revenue
Total Revenue

2,047.9
2,047.9

2,469.9
2,469.9

3,269.9
3,269.9

4,122.9
4,122.9

5,062.5
5,062.5

6,372.6
6,372.6

Cost Of Goods Sold

Gross Profit

1,120.1
927.8

1,376.4
1,093.5

1,877.9
1,392.0

2,416.7
1,706.2

2,987.1
2,075.4

3,839.6
2,533.0

659.7
34.1
-

756.9
38.0
-

973.0
49.9
-

1,219.3
64.1
-

1,454.1
81.0
-

1,769.7
110.3
-

Other Operating Exp., Total

693.8

794.9

1,022.9

1,283.4

1,535.0

1,880.0

Operating Incom e

234.0

298.5

369.1

422.8

540.4

653.0

Interest Expense
Interest and Invest. Income
Net Interest Exp.

(32.3)
1.4
(30.9)

(29.8)
1.4
(28.3)

(24.3)
1.9
(22.4)

(31.4)
0.2
(31.2)

(51.2)
0.4
(50.8)

(63.0)
0.4
(62.7)

Income Tax Expense

Earnings from Cont. Ops.

78.2
127.1

103.0
167.1

125.5
210.3

147.9
261.2

164.2
311.6

196.6
378.9

Earnings of Discontinued Ops.

Extraord. Item & Account. Change
Net Incom e to Com pany

0.4
127.5

2.0
169.1

210.3

261.2

311.6

378.9

Minority Int. in Earnings

Net Incom e

127.5

169.1

210.3

261.2

311.6

378.9

For the Fiscal Period Ending

Currency

Selling General & Admin Exp.

R & D Exp.
Depreciation & Amort.
Other Operating Expense/(Income)

| Page 35
Jack Ferraro, MBA
70

presented by

Balance Sheet
Balance Sheet as of:
Dec-31-2009
USD

Dec-31-2010
USD

Dec-31-2011
USD

Dec-31-2012
USD

Dec-31-2013
USD

Sep-30-2014
USD

108.9
108.9

95.7
95.7

48.2
48.2

59.8
59.8

150.5
150.5

244.6
244.6

Accounts Receivable
Total Receivables

152.4
152.4

191.1
191.1

281.8
281.8

311.8
311.8

458.1
458.1

609.4
609.4

Inventory
Prepaid Exp.
Deferred Tax Assets, Curr.
Other Current Assets
Total Current Assets

385.7
9.6
31.8
14.4
702.9

492.7
14.0
32.5
10.9
836.9

736.8
19.6
45.7
17.6
1,149.7

900.8
28.9
53.5
29.5
1,384.4

1,077.0
42.3
63.9
8.1
1,799.8

1,341.3
76.1
74.0
2,345.5

Gross Property, Plant & Equipment

Accumulated Depreciation
Net Property, Plant & Equipm ent

397.9
(108.0)
289.9

473.7
(142.4)
331.3

604.0
(180.0)
424.1

725.5
(231.1)
494.4

840.8
(294.2)
546.7

612.3

Long-term Investments
Goodw ill
Other Intangibles
Deferred Tax Assets, LT
Deferred Charges, LT
Other Long-Term Assets
Total Assets

938.8
67.2
21.3
2,020.1

4.8
1,033.0
69.3
24.2
2,299.5

1,476.1
108.9
40.9
3,199.7

1,690.3
106.7
0.2
0.3
47.3
3,723.5

8.9
1,937.4
153.7
1.5
15.8
54.9
4,518.8

9.5
2,257.2
221.0
89.0
5,534.6

LIABILITIES
Accounts Payable
Accrued Exp.
Curr. Port. of LT Debt
Curr. Income Taxes Payable
Unearned Revenue, Current
Def. Tax Liability, Curr.
Other Current Liabilities
Total Current Liabilities

51.3
89.0
15.1
9.3
3.8
168.5

76.4
82.1
54.3
12.5
225.3

210.9
131.0
29.5
7.3
1.6
17.4
397.7

219.3
134.1
72.4
2.7
0.0
59.3
487.9

349.1
177.0
41.5
17.4
3.4
89.6
678.0

403.6
261.0
72.9
33.9
771.4

Long-Term Debt
Def. Tax Liability, Non-Curr.
Other Non-Current Liabilities
Total Liabilities

598.2
52.2
21.8
840.7

548.1
66.1
45.9
885.3

937.2
88.8
132.0
1,555.6

1,061.7
102.3
107.4
1,759.4

1,272.7
133.8
83.5
2,168.0

1,830.7
159.3
105.5
2,866.9

Common Stock
Additional Paid In Capital
Retained Earnings
Treasury Stock
Comprehensive Inc. and Other
Total Com m on Equity

1.4
816.0
369.5
(7.4)
1,179.4

1.5
869.8
538.5
4.4
1,414.2

2.9
901.3
748.8
(9.0)
1,644.1

3.0
950.3
1,010.0
0.8
1,964.1

3.0
1,006.1
1,321.6
20.0
2,350.7

3.0
1,044.0
1,622.7
(2.0)
2,667.7

Total Equity

1,179.4

1,414.2

1,644.1

1,964.1

2,350.7

2,667.7

Total Liabilities And Equity

2,020.1

2,299.5

3,199.7

3,723.5

4,518.8

5,534.6

Currency
ASSETS
Cash And Equivalents
Total Cash & ST Investm ents

Jack Ferraro, MBA

70

| Page 36

presented by

Cash Flow
Reclassified
12 m onths
Dec-31-2009
USD

12 m onths
Dec-31-2010
USD

12 m onths
Dec-31-2011
USD

12 m onths
Dec-31-2012
USD

12 m onths
Dec-31-2013
USD

LTM
12 m onths
Sep-30-2014
USD

Net Incom e
Depreciation & Amort.
Amort. of Goodw ill and Intangibles
Depreciation & Am ort., Total

127.5
34.0
4.1
38.1

169.1
37.2
4.2
41.4

210.3
46.6
7.9
54.5

261.2
60.7
9.5
70.2

311.6
72.7
11.1
83.7

378.9
86.0
26.5
112.5

Other Amortization
Asset Writedow n & Restructuring Costs
Stock-Based Compensation
Tax Benefit from Stock Options
Net Cash From Discontinued Ops.
Other Operating Activities
Change in Acc. Receivable
Change In Inventories
Change in Acc. Payable
Change in Unearned Rev.
Change in Inc. Taxes
Change in Other Net Operating Assets
Cash from Ops.

2.5
(4.3)
7.3
(9.6)
(0.4)
6.6
(0.4)
(20.4)
(18.1)
1.4
24.1
9.9
164.0

10.0
(15.0)
8.9
(12.3)
(67.8)
10.2
7.5
7.3
159.2

13.1
(8.0)
15.9
(18.1)
(90.1)
28.6
2.3
3.3
211.8

15.6
(15.7)
8.7
(12.8)
(95.0)
(15.1)
(0.8)
(10.1)
206.2

2.7
22.0
(18.3)
13.9
(44.7)
(69.2)
49.6
50.0
26.6
428.1

2.7
22.7
(16.8)
9.9
(79.1)
(106.3)
49.4
30.3
5.4
409.8

Capital Expenditure
Sale of Property, Plant, and Equipment
Cash Acquisitions
Divestitures
Invest. in Marketable & Equity Securt.
Net (Inc.) Dec. in Loans Originated/Sold
Other Investing Activities
Cash from Investing

(55.9)
1.1
(65.2)
17.5
(102.5)

(61.4)
1.4
(143.6)
12.0
(191.6)

(86.4)
1.7
(486.9)
(571.6)

(88.3)
1.1
(265.3)
(352.5)

(90.2)
2.1
(408.4)
(9.1)
(505.6)

(129.3)
3.8
(663.0)
(2.2)
(790.7)

2.3
2.3
(53.0)
(53.0)

(7.5)
(7.5)

1,361.4
1,361.4
(1,058.8)
(1,058.8)

1,025.1
1,025.1
(896.9)
(896.9)

1,113.5
1,113.5
(931.5)
(931.5)

1,428.3
(883.8)

8.2

14.0

11.9

17.7

15.4

8.3

9.3
(33.2)

12.5
19.0

(3.1)
311.4

11.2
157.1

(31.5)
165.9

(32.8)
520.0

1.5
29.8

0.2
(13.2)

1.0
(47.4)

0.8
11.5

2.3
90.7

(1.8)
137.3

For the Fiscal Period Ending

Currency

Short Term Debt Issued

Long-Term Debt Issued
Total Debt Issued
Short Term Debt Repaid
Long-Term Debt Repaid
Total Debt Repaid
Issuance of Common Stock
Total Dividends Paid
Special Dividend Paid
Other Financing Activities
Cash from Financing
Foreign Exchange Rate Adj.
Net Change in Cash

Jack Ferraro, MBA

70

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