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| Avery Dennison Announces Third Quarter 2009 Results | PASADENA, Calif.--(BUSINESS WIRE)--Oct. 27, 2009--
Avery Dennison Corporation (NYSE:AVY) today announced preliminary third
quarter 2009 results.
All non-GAAP terms are reconciled to GAAP in the attached tables.
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Third Quarter Financial Summary - Preliminary
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($ millions, except per share amounts)
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3Q
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3Q
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% Change vs. P/Y
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2009
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2008
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Reported
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Organic (a)
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Net sales, by segment:
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Pressure-sensitive Materials
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$
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851.0
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$
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936.2
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-9
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%
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-3
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%
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Retail Information Services
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325.2
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379.1
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-14
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%
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-11
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%
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Office and Consumer Products
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242.8
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260.4
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-7
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%
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-4
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%
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Other specialty converting businesses
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130.3
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149.1
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-13
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%
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-10
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%
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Total net sales
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$
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1,549.3
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$
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1,724.8
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-10
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%
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-6
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%
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As Reported (GAAP)
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Adjusted Non-GAAP (b)
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% of Sales
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% of Sales
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2009
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2008
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% Change
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2009
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2008
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2009
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2008
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% Change
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2009
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2008
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|
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Operating income (loss) before
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interest and taxes, by segment:
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Pressure-sensitive Materials
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$
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75.7
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$
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62.8
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21
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%
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8.9
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%
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6.7
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%
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$
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84.0
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$
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68.5
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23
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%
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9.9
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%
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7.3
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%
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Retail Information Services
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(29.1
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)
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0.5
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-5920
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%
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-8.9
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%
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0.1
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%
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(6.8
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)
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7.1
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-196
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%
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-2.1
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%
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1.9
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%
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Office and Consumer Products
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41.0
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41.5
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-1
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%
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16.9
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%
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15.9
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%
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40.8
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45.4
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-10
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%
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16.8
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%
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17.4
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%
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Other specialty converting businesses
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0.9
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1.2
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-25
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%
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0.7
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%
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0.8
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%
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6.0
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2.7
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122
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%
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4.6
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%
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1.8
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%
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Corporate expense
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(11.1
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)
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(9.7
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)
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(11.1
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)
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(9.7
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)
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Total operating income before
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interest and taxes
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$
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77.4
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$
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96.3
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-20
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%
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5.0
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%
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5.6
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%
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$
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112.9
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$
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114.0
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-1
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%
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7.3
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%
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6.6
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%
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Interest expense
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19.1
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29.0
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19.1
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29.0
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Income from operations
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before taxes
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$
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58.3
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$
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67.3
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-13
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%
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3.8
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%
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3.9
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%
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$
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93.8
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$
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85.0
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|
10
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%
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6.1
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%
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4.9
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%
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(Benefit from) Provision for income taxes
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($4.2
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)
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$
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4.6
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$
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7.0
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$
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4.6
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Net income
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$
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62.5
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$
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62.7
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0
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%
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4.0
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%
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3.6
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%
|
|
$
|
86.8
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|
$
|
80.4
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|
8
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%
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|
5.6
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%
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4.7
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%
|
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Net income per common share, assuming dilution
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$
|
0.59
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$
|
0.63
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|
-6
|
%
|
|
|
|
|
|
$
|
0.82
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|
|
$
|
0.81
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|
1
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%
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2009
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2008
|
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YTD Free Cash Flow (c)
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$
|
250.1
|
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|
$
|
251.5
|
|
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a) Percentage change in sales before the impact of acquisitions and
foreign currency translation
b) Excludes restructuring and asset impairment charges, transition costs
associated with acquisition integrations, and other items (see
accompanying schedules A-3 and A-4 for reconciliation to GAAP measures).
c) Free Cash Flow (a non-GAAP measure) as used herein is defined as net
cash provided by operating activities (as reported), less purchase of
property, plant, equipment, software, and other deferred charges, plus
proceeds from sale of investments, net (see accompanying schedule A-3
for reconciliation to GAAP measure).
“In the face of continuing tough market conditions we increased
operating margin, reflecting the strength of our franchise businesses
and the effectiveness of our operating model,” said Dean A. Scarborough,
president and chief executive officer of Avery Dennison. “The
combination of fixed-cost reductions and increasing variable margins
positions the Company for strong profit growth when markets improve.”
“While the rate of volume decline in the third quarter improved compared
with the first half of the year, this was largely due to a slowdown in
inventory reductions,” Scarborough said. “Our end-markets remain soft,
and we continue to be cautious about the pace of their recovery.”
“I want to note the excellent performance of our employees in such
uncertain times,” Scarborough said. “They have maintained their focus on
serving our customers, operating our businesses, and laying the
groundwork for the future. This has been hard work, and they’ve done a
tremendous job.”
For more details on the Company’s results for the quarter, see the
Company’s supplemental presentation materials, “Third Quarter 2009
Financial Review and Analysis,” posted at the Company’s Web site at www.investors.averydennison.com,
and furnished under Form 8-K with the SEC.
Third Quarter, 2009 Results by Segment
All references to sales reflect comparisons on an organic basis, which
exclude the impact of acquisitions and foreign currency translation. All
references to operating margin exclude the impact of restructuring,
asset impairment charges, lease cancellation costs, and other items.
Pressure-sensitive Materials (PSM)
-
Roll Materials sales declined, reflecting weakness in end-markets.
Sales continued to decline in the more economically sensitive Graphics
and Reflective Products division.
-
Operating margin increased as productivity offset the impact of
reduced fixed-cost leverage, while the effects of pricing and raw
material trends continued to cover the cumulative impact of 2008
inflation.
Retail Information Services (RIS)
-
The decline in sales primarily reflected reduced demand for apparel in
the U.S. and in Europe, and caution on the part of retailers.
-
The decline in operating margin reflected reduced fixed-cost leverage,
pricing, and other factors that more than offset the benefit of
restructuring and productivity actions.
-
The Company is continuing initiatives to reduce fixed costs in light
of current market conditions, while introducing new products and
improving value-added services to increase its share of this large
market.
Office and Consumer Products (OCP)
-
The decline in sales reflected weak end-market demand, led by slower
corporate purchase activity. The sales decline was partially offset by
strong back-to-school sales, due in part to expanded distribution and
consumer trade-up to more durable binders.
-
Operating margin declined as the benefit of productivity actions was
more than offset by the impact of reduced fixed-cost leverage.
Other specialty converting businesses
-
The decline in sales is primarily attributable to lower volume of
products sold to the housing and construction industries.
-
The increase in operating margin reflected restructuring and
productivity improvements that more than offset reduced fixed-cost
leverage.
Consolidated Items and Actions
-
In the fourth quarter of 2008, the Company began a restructuring
program expected to reduce costs across all segments of the business.
The Company is targeting $160 million in annualized savings by
mid-2010 (estimating $75 million benefit, net of transition costs, in
2009). The Company estimates that it will incur approximately $130
million of total restructuring charges associated with these actions,
with approximately $110 million to be incurred in 2009. In addition to
the savings from these new actions, the Company expects approximately
$40 million of carryover savings in the year from previously
implemented actions.
At the end of the third quarter of
2009, the Company achieved run-rate savings representing approximately
70 percent of its restructuring target.
-
The effective tax rate in the third quarter was negative 7 percent,
while the adjusted tax rate was positive 7.5 percent. The effective
and adjusted tax rates for the full year are expected to be in the low
single-digits and low double-digits, respectively. The ongoing annual
tax rate is expected to be in the low 20 percent range, varying
significantly from quarter to quarter.
Avery Dennison is a recognized industry leader that develops innovative
identification and decorative solutions for businesses and consumers
worldwide. The Company’s products include pressure-sensitive labeling
materials; graphics imaging media; retail apparel ticketing and branding
systems; RFID inlays and tags; office products; specialty tapes; and a
variety of specialized labels for automotive, industrial and durable
goods applications. A FORTUNE 500 Company with sales of $6.7 billion in
2008, Avery Dennison is based in Pasadena, California and has employees
in over 60 countries. For more information, visit www.averydennison.com.
“Safe Harbor” Statement under the Private Securities Litigation
Reform Act of 1995:
Certain statements contained in this document are "forward-looking
statements" intended to qualify for the safe harbor from liability
established by the Private Securities Litigation Reform Act of 1995.
Such forward-looking statements and financial or other business targets
are subject to certain risks and uncertainties. Actual results and
trends may differ materially from historical or anticipated results
depending on a variety of factors, including but not limited to risks
and uncertainties relating to investment in development activities and
new production facilities; fluctuations in cost and availability of raw
materials; ability of the Company to achieve and sustain targeted cost
reductions; ability of the Company to generate sustained productivity
improvement; successful integration of acquisitions; successful
implementation of new manufacturing technologies and installation of
manufacturing equipment; the financial condition and inventory
strategies of customers; customer and supplier concentrations; changes
in customer order patterns; loss of significant contract(s) or
customer(s); timely development and market acceptance of new products;
fluctuations in demand affecting sales to customers; impact of
competitive products and pricing; selling prices; business mix shift;
volatility of capital and credit markets; impairment of capitalized
assets, including goodwill and other intangibles; credit risks; ability
of the Company to obtain adequate financing arrangements and to maintain
access to capital; fluctuations in interest and tax rates; fluctuations
in pension, insurance and employee benefit costs; impact of legal
proceedings, including a previous government investigation into industry
competitive practices, and any related proceedings or lawsuits
pertaining thereto or to the subject matter thereof related to the
concluded investigation by the U.S. Department of Justice ("DOJ")
(including purported class actions seeking treble damages for alleged
unlawful competitive practices, which were filed after the announcement
of the DOJ investigation), as well as the impact of potential violations
of the U.S. Foreign Corrupt Practices Act; changes in tax laws and
regulations; changes in governmental regulations; changes in political
conditions; fluctuations in foreign currency exchange rates and other
risks associated with foreign operations; worldwide and local economic
conditions; impact of epidemiological events on the economy and the
Company's customers and suppliers; acts of war, terrorism, and natural
disasters; and other factors.
The Company believes that the most significant risk factors that could
affect its financial performance in the near-term include (1) the impact
of economic conditions on underlying demand for the Company's products
and on the carrying value of its assets; (2) the impact of competitors'
actions, including pricing, expansion in key markets, and product
offerings; (3) the degree to which higher costs can be offset with
productivity measures and/or passed on to customers through selling
price increases, without a significant loss of volume; (4) the impact of
an increase in costs associated with the Company’s debt; and (5) the
ability of the Company to achieve and sustain targeted cost reductions.
For a more detailed discussion of these and other factors, see “Risk
Factors” and “Management’s Discussion and Analysis of Results of
Operations and Financial Condition” in the Company’s most recent Form
10-K, filed on February 25, 2009, with the Securities and Exchange
Commission. The forward-looking statements included in this document are
made only as of the date of this document, and the Company undertakes no
obligation to update the forward-looking statements to reflect
subsequent events or circumstances.
For more information and to listen to a live broadcast or an audio
replay of the Third Quarter conference call with analysts, visit the
Avery Dennison Web site at www.investors.averydennison.com.
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A-1
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AVERY DENNISON
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PRELIMINARY CONSOLIDATED STATEMENT OF INCOME
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(In millions, except per share amounts)
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(UNAUDITED)
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Three Months Ended
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Nine Months Ended
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Oct. 3, 2009
|
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|
|
Sep. 27, 2008
|
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|
|
Oct. 3, 2009
|
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|
|
Sep. 27, 2008
|
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|
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(13 Weeks)
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|
|
(13 Weeks)
|
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|
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(40 Weeks)
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|
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(39 Weeks)
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Net sales
|
|
|
$
|
1,549.3
|
|
|
|
$
|
1,724.8
|
|
|
$
|
4,430.9
|
|
|
|
$
|
5,198.9
|
|
|
|
|
|
|
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|
Cost of products sold
|
|
|
|
1,113.3
|
|
|
|
|
1,290.5
|
|
|
|
3,259.5
|
|
|
|
|
3,850.3
|
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|
Gross profit
|
|
|
|
436.0
|
|
|
|
|
434.3
|
|
|
|
1,171.4
|
|
|
|
|
1,348.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketing, general & administrative expense
|
|
|
|
323.1
|
|
|
|
|
325.5
|
|
|
|
927.4
|
|
|
|
|
994.5
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
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|
|
Goodwill and indefinite-lived intangible asset impairment charges
|
|
|
|
---
|
|
|
|
|
---
|
|
|
|
832.0
|
|
|
|
|
---
|
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|
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|
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|
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|
|
Interest expense
|
|
|
|
19.1
|
|
|
|
|
29.0
|
|
|
|
67.0
|
|
|
|
|
87.8
|
|
|
|
|
|
|
|
|
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|
|
Other expense, net (1)
|
|
|
|
35.5
|
|
|
|
|
12.5
|
|
|
|
162.4
|
|
|
|
|
23.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations before taxes
|
|
|
|
58.3
|
|
|
|
|
67.3
|
|
|
|
(817.4
|
)
|
|
|
|
242.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Benefit from) provision for income taxes
|
|
|
|
(4.2
|
)
|
|
|
|
4.6
|
|
|
|
(20.8
|
)
|
|
|
|
18.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
$
|
62.5
|
|
|
|
$
|
62.7
|
|
|
$
|
(796.6
|
)
|
|
|
$
|
223.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share amounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per common share, assuming dilution
|
|
|
$
|
0.59
|
|
|
|
$
|
0.63
|
|
|
$
|
(7.73
|
)
|
|
|
$
|
2.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average common shares outstanding, assuming dilution
|
|
|
|
106.0
|
|
|
|
|
98.9
|
|
|
|
103.1
|
|
|
|
|
98.9
|
|
Common shares outstanding at period end
|
|
|
|
105.2
|
|
|
|
|
98.3
|
|
|
|
105.2
|
|
|
|
|
98.3
|
|
(1)
|
|
Other expense for the third quarter of 2009 includes $33.5 of
restructuring costs, asset impairment and lease cancellation
charges and legal settlement costs of $2.
|
|
|
|
|
|
|
|
Other expense for the third quarter of 2008 includes $12.5 of
restructuring costs, asset impairment and lease cancellation charges.
|
|
|
|
|
|
|
|
Other expense for 2009 YTD includes $102.2 of restructuring costs,
asset impairment and lease cancellation charges, legal settlement
costs of $39 and a loss of $21.2 from debt extinguishment.
|
|
|
|
|
|
|
|
Other expense, net, for 2008 YTD includes $28.4 of restructuring
costs, asset impairment and lease cancellation charges, partially
offset by ($4.5) related to a gain on sale of investments.
|
|
A-2
|
|
|
|
Reconciliation of Non-GAAP Financial Measures in Accordance with
SEC Regulations G and S-K
|
|
|
|
Avery Dennison reports financial results in accordance with U.S.
GAAP, and herein provides some non-GAAP financial measures. These
non-GAAP financial measures are not in accordance with, nor are they
a substitute for, GAAP financial measures. These non-GAAP financial
measures are intended to supplement the Company's presentation of
its financial results that are prepared in accordance with GAAP.
|
|
|
|
The Company’s non-GAAP financial measures exclude the impact of
certain events, activities or strategic decisions. The accounting
effects of these events, activities or decisions, which are
included in the GAAP measures, may make it difficult to assess the
underlying performance of the Company in a single period. By
excluding certain accounting effects, both positive and negative
(e.g. restructuring charges, asset impairments, legal settlement
costs, certain effects of acquisitions and related integration
costs, loss from debt extinguishment, gains on sales of assets,
etc.), from certain of the Company’s GAAP measures, the Company
believes that it is providing meaningful supplemental information
to facilitate an understanding of the Company’s "core" or
"underlying" operating results. These non-GAAP measures are used
internally to evaluate trends in the Company’s underlying
business, as well as to facilitate comparison to the results of
competitors for a single period. The Company adjusts the
estimated full-year GAAP tax rate to exclude the tax rate effect
of charges for goodwill and indefinite-lived intangible asset
impairments to determine its anticipated adjusted non-GAAP tax
rate to derive non-GAAP net income.
|
|
|
|
Limitations associated with the use of the Company’s non-GAAP
measures include (1) the exclusion of items that recur from time
to time (e.g. restructuring, asset impairment charges,
discontinued operations, etc.) and items that occur infrequently
(e.g. legal settlement costs, loss from debt extinguishment) from
calculations of the Company’s earnings and operating margin; (2)
the exclusion of certain effects of acquisitions, including
integration costs and certain financing costs; (3) the exclusion
of interest expense from the calculation of the Company’s
operating margin; and (4) the exclusion of any mandatory debt
service requirements, as well as the exclusion of other uses of
the cash generated by operating activities that do not directly or
immediately support the underlying business (such as discretionary
debt reductions, dividends, share repurchase, acquisitions, etc.)
for calculation of free cash flow. While certain items that the
Company excludes from GAAP measures recur, these items tend to be
disparate in amount and timing. Based upon feedback from
investors and financial analysts, the Company believes that
supplemental non-GAAP measures provide information that is useful
to the assessment of the Company’s performance and operating
trends.
|
|
|
|
The reconciliation set forth below is provided in accordance with
Regulations G and S-K and reconciles the non-GAAP financial measures
with the most directly comparable GAAP financial measures.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A-3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERY DENNISON
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PRELIMINARY RECONCILIATION OF GAAP TO NON-GAAP MEASURES
|
|
|
|
|
|
|
|
|
|
|
(In millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Nine Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oct. 3, 2009
|
|
|
Sep. 27, 2008
|
|
|
|
Oct. 3, 2009
|
|
|
Sep. 27, 2008
|
|
|
|
|
(13 Weeks)
|
|
|
(13 Weeks)
|
|
|
|
(40 Weeks)
|
|
|
(39 Weeks)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP Operating Margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
1,549.3
|
|
|
$
|
1,724.8
|
|
|
|
$
|
4,430.9
|
|
|
$
|
5,198.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations before taxes
|
|
$
|
58.3
|
|
|
$
|
67.3
|
|
|
|
$
|
(817.4
|
)
|
|
$
|
242.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating Margin
|
|
|
3.8
|
%
|
|
|
3.9
|
%
|
|
|
|
(18.4
|
%)
|
|
|
4.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations before taxes
|
|
$
|
58.3
|
|
|
$
|
67.3
|
|
|
|
$
|
(817.4
|
)
|
|
$
|
242.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring costs
|
|
|
27.0
|
|
|
|
8.7
|
|
|
|
|
69.9
|
|
|
|
19.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset impairment and lease cancellation charges
|
|
|
6.5
|
|
|
|
3.8
|
|
|
|
|
32.3
|
|
|
|
9.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from debt extinguishment
|
|
|
---
|
|
|
|
---
|
|
|
|
|
21.2
|
|
|
|
---
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Legal settlement costs
|
|
|
2.0
|
|
|
|
---
|
|
|
|
|
39.0
|
|
|
|
---
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill and indefinite-lived intangible asset impairment charges
|
---
|
|
|
|
---
|
|
|
|
|
832.0
|
|
|
|
---
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transition costs associated with acquisition integrations (1)
|
|
|
---
|
|
|
|
5.2
|
|
|
|
|
---
|
|
|
|
17.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (2)
|
|
|
---
|
|
|
|
---
|
|
|
|
|
---
|
|
|
|
(4.5
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
19.1
|
|
|
|
29.0
|
|
|
|
|
67.0
|
|
|
|
87.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted non-GAAP operating income before taxes and interest expense
|
|
$
|
112.9
|
|
|
$
|
114.0
|
|
|
|
$
|
244.0
|
|
|
$
|
372.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Non-GAAP Operating Margin
|
|
|
7.3
|
%
|
|
|
6.6
|
%
|
|
|
|
5.5
|
%
|
|
|
7.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP Net Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported net income (loss)
|
|
$
|
62.5
|
|
|
$
|
62.7
|
|
|
|
$
|
(796.6
|
)
|
|
$
|
223.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjustments, net of taxes:(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill and indefinite-lived intangible asset impairment charges
|
---
|
|
|
|
---
|
|
|
|
|
812.6
|
|
|
|
---
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All other (3)
|
|
|
24.3
|
|
|
|
17.7
|
|
|
|
|
141.5
|
|
|
|
37.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Non-GAAP Net Income
|
|
$
|
86.8
|
|
|
$
|
80.4
|
|
|
|
$
|
157.5
|
|
|
$
|
261.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A-3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERY DENNISON
|
|
|
|
|
|
|
|
|
PRELIMINARY RECONCILIATION OF GAAP TO NON-GAAP MEASURES
|
|
(In millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oct. 3, 2009
|
|
|
Sep. 27, 2008
|
|
|
Oct. 3, 2009
|
|
|
Sep. 27, 2008
|
|
|
|
|
|
(13 Weeks)
|
|
|
(13 Weeks)
|
|
|
(40 Weeks)
|
|
|
(39 Weeks)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP Earnings Per Share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported income (loss) per common share, assuming dilution
|
|
$
|
0.59
|
|
$
|
0.63
|
|
$
|
(7.73
|
)
|
|
$
|
2.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjustments per share, net of taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill and indefinite-lived intangible asset impairment charges
|
|
|
---
|
|
|
---
|
|
|
7.88
|
|
|
|
---
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All other (3)
|
|
|
0.23
|
|
|
0.18
|
|
|
1.38
|
|
|
|
0.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Non-GAAP income per common share, assuming dilution
|
|
$
|
0.82
|
|
$
|
0.81
|
|
$
|
1.53
|
|
|
$
|
2.64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average common shares outstanding, assuming dilution
|
|
|
106.0
|
|
|
98.9
|
|
|
103.1
|
|
|
|
98.9
|
|
(1)
|
|
|
2008 QTD and YTD includes transition costs associated with
acquisition integrations and change-in-control costs reported in
marketing, general & administrative expense.
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
|
|
2008 YTD includes a gain on sale of investments.
|
|
|
|
|
|
|
(3)
|
|
|
Reflects after-tax effect on restructuring costs, asset impairment
and lease cancellation charges, legal settlement costs, loss from
debt extinguishment, transition costs associated with acquisition
integrations and gain on sale of investments.
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
|
|
The Company adjusts the estimated full-year GAAP tax rate to
exclude the tax rate effect of charges for goodwill and
indefinite-lived intangible asset impairments to determine its
anticipated adjusted non-GAAP tax rate to derive non-GAAP net
income.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oct. 3, 2009
|
|
|
Sep. 27, 2008
|
|
|
|
|
|
(40 Weeks)
|
|
|
(39 Weeks)
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP Cash Flow:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
$
|
316.9
|
|
|
$
|
382.3
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property, plant and equipment
|
|
|
(46.7
|
)
|
|
|
(97.8
|
)
|
|
|
|
|
|
|
|
|
|
|
Purchase of software and other deferred charges
|
|
|
(20.4
|
)
|
|
|
(49.2
|
)
|
|
|
|
|
|
|
|
|
|
|
Proceeds from sale of investments, net
|
|
|
0.3
|
|
|
|
16.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow
|
|
|
$
|
250.1
|
|
|
$
|
251.5
|
|
|
|
|
|
|
|
|
|
|
|
|
A-4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERY DENNISON
|
|
PRELIMINARY SUPPLEMENTARY INFORMATION
|
|
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(UNAUDITED)
|
|
|
|
Third Quarter Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET SALES
|
|
OPERATING INCOME (LOSS)
|
|
OPERATING MARGINS
|
|
|
|
|
2009
|
|
|
2008
|
|
|
2009 1
|
|
|
|
2008 2
|
|
|
2009
|
|
|
2008
|
|
|
|
|
(13 weeks)
|
|
(13 weeks)
|
|
(13 weeks)
|
|
(13 weeks)
|
|
(13 weeks)
|
|
(13 weeks)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pressure-sensitive Materials
|
|
$
|
851.0
|
|
$
|
936.2
|
|
$
|
75.7
|
|
|
$
|
62.8
|
|
|
8.9
|
%
|
|
6.7
|
%
|
|
Retail Information Services
|
|
|
325.2
|
|
|
379.1
|
|
|
(29.1
|
)
|
|
|
0.5
|
|
|
(8.9
|
%)
|
|
0.1
|
%
|
|
Office and Consumer Products
|
|
|
242.8
|
|
|
260.4
|
|
|
41.0
|
|
|
|
41.5
|
|
|
16.9
|
%
|
|
15.9
|
%
|
|
Other specialty converting businesses
|
|
|
130.3
|
|
|
149.1
|
|
|
0.9
|
|
|
|
1.2
|
|
|
0.7
|
%
|
|
0.8
|
%
|
|
Corporate Expense
|
|
|
N/A
|
|
|
N/A
|
|
|
(11.1
|
)
|
|
|
(9.7
|
)
|
|
N/A
|
|
|
N/A
|
|
|
Interest Expense
|
|
|
N/A
|
|
|
N/A
|
|
|
(19.1
|
)
|
|
|
(29.0
|
)
|
|
N/A
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL FROM OPERATIONS
|
|
$
|
1,549.3
|
|
$
|
1,724.8
|
|
$
|
58.3
|
|
|
$
|
67.3
|
|
|
3.8
|
%
|
|
3.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Operating income for the third quarter of 2009 includes
$33.5 of restructuring costs, asset impairment and lease
cancellation charges and legal settlement costs of $2; of the
total $35.5, the Pressure-sensitive Materials segment recorded
$8.3, the Retail Information Services segment recorded $22.3, the
Office and Consumer Products segment recorded ($.2) and the other
specialty converting businesses recorded $5.1.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Operating income for the third quarter of 2008 includes
$12.5 of restructuring costs, asset impairment and lease
cancellation charges and $5.2 of transition costs associated with
acquisition integrations; of the total $17.7, the
Pressure-sensitive Materials segment recorded $5.7, the Retail
Information Services segment recorded $6.6, the Office and
Consumer Products segment recorded $3.9 and the other specialty
converting businesses recorded $1.5.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning in 2009, the Company modified its approach to allocating
Corporate costs to its operating segments to better reflect the
costs required to support operations within segment
results. Prior year amounts have been restated to conform with
the new methodology.
|
|
|
RECONCILIATION OF GAAP TO NON-GAAP SUPPLEMENTARY INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarter Ended
|
|
|
|
|
|
OPERATING INCOME (LOSS)
|
|
OPERATING MARGINS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2009
|
|
|
|
2008
|
|
|
2009
|
|
|
2008
|
|
|
Pressure-sensitive Materials
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income, as reported
|
|
|
|
$
|
75.7
|
|
|
$
|
62.8
|
|
|
8.9
|
%
|
|
6.7
|
%
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring costs
|
|
|
|
|
3.9
|
|
|
|
2.5
|
|
|
0.5
|
%
|
|
0.3
|
%
|
|
Asset impairment and lease cancellation charges
|
|
|
|
|
2.4
|
|
|
|
3.2
|
|
|
0.3
|
%
|
|
0.3
|
%
|
|
Legal settlement costs
|
|
|
|
|
2.0
|
|
|
|
---
|
|
|
0.2
|
%
|
|
---
|
|
|
Adjusted non-GAAP operating income
|
|
|
|
$
|
84.0
|
|
|
$
|
68.5
|
|
|
9.9
|
%
|
|
7.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Information Services
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (loss) income, as reported
|
|
|
|
$
|
(29.1
|
)
|
|
$
|
0.5
|
|
|
(8.9
|
%)
|
|
0.1
|
%
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring costs
|
|
|
|
|
21.0
|
|
|
|
1.4
|
|
|
6.4
|
%
|
|
0.4
|
%
|
|
Asset impairment and lease cancellation charges
|
|
|
|
|
1.3
|
|
|
|
---
|
|
|
0.4
|
%
|
|
---
|
|
|
Transition costs associated with acquisition integrations
|
|
|
|
---
|
|
|
|
5.2
|
|
|
---
|
|
|
1.4
|
%
|
|
Adjusted non-GAAP operating (loss) income
|
|
|
|
$
|
(6.8
|
)
|
|
$
|
7.1
|
|
|
(2.1
|
%)
|
|
1.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Office and Consumer Products
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income, as reported
|
|
|
|
$
|
41.0
|
|
|
$
|
41.5
|
|
|
16.9
|
%
|
|
15.9
|
%
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring costs
|
|
|
|
|
(0.2
|
)
|
|
|
3.3
|
|
|
(0.1
|
%)
|
|
1.3
|
%
|
|
Asset impairment charges
|
|
|
|
|
---
|
|
|
|
0.6
|
|
|
---
|
|
|
0.2
|
%
|
|
Adjusted non-GAAP operating income
|
|
|
|
$
|
40.8
|
|
|
$
|
45.4
|
|
|
16.8
|
%
|
|
17.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other specialty converting
businesses
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income, as reported
|
|
|
|
$
|
0.9
|
|
|
$
|
1.2
|
|
|
0.7
|
%
|
|
0.8
|
%
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring costs
|
|
|
|
|
2.3
|
|
|
|
1.5
|
|
|
1.8
|
%
|
|
1.0
|
%
|
|
Asset impairment charges
|
|
|
|
|
2.8
|
|
|
|
---
|
|
|
2.1
|
%
|
|
---
|
|
|
Adjusted non-GAAP operating income
|
|
|
|
$
|
6.0
|
|
|
$
|
2.7
|
|
|
4.6
|
%
|
|
1.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
A-5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERY DENNISON
PRELIMINARY SUPPLEMENTARY INFORMATION
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(UNAUDITED)
|
|
|
|
Nine Months Year-to-Date
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET SALES
|
|
OPERATING INCOME (LOSS)
|
|
OPERATING MARGINS
|
|
|
|
|
2009
|
|
|
2008
|
|
|
2009 1
|
|
|
|
2008 2
|
|
|
2009
|
|
|
2008
|
|
|
|
|
(40 weeks)
|
|
(39 weeks)
|
|
(40 weeks)
|
|
(39 weeks)
|
|
(40 weeks)
|
|
(39 weeks)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pressure-sensitive Materials
|
|
$
|
2,453.4
|
|
$
|
2,835.7
|
|
$
|
126.1
|
|
|
$
|
217.0
|
|
|
5.1
|
%
|
|
7.7
|
%
|
|
Retail Information Services
|
|
|
972.7
|
|
|
1,189.3
|
|
|
(888.4
|
)
|
|
|
17.1
|
|
|
(91.3
|
%)
|
|
1.4
|
%
|
|
Office and Consumer Products
|
|
|
644.1
|
|
|
710.2
|
|
|
98.9
|
|
|
|
104.1
|
|
|
15.4
|
%
|
|
14.7
|
%
|
|
Other specialty converting businesses
|
|
|
360.7
|
|
|
463.7
|
|
|
(37.0
|
)
|
|
|
16.5
|
|
|
(10.3
|
%)
|
|
3.6
|
%
|
|
Corporate Expense
|
|
|
N/A
|
|
|
N/A
|
|
|
(50.0
|
)
|
|
|
(24.5
|
)
|
|
N/A
|
|
|
N/A
|
|
|
Interest Expense
|
|
|
N/A
|
|
|
N/A
|
|
|
(67.0
|
)
|
|
|
(87.8
|
)
|
|
N/A
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL FROM OPERATIONS
|
|
$
|
4,430.9
|
|
$
|
5,198.9
|
|
$
|
(817.4
|
)
|
|
$
|
242.4
|
|
|
(18.4
|
%)
|
|
4.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Operating loss for 2009 includes $832 of goodwill and
indefinite-lived intangible asset impairment charges, $102.2 of
restructuring costs, asset impairment and lease cancellation
charges, legal settlement costs of $39 and a loss of $21.2 from
debt extinguishment; of the total $994.4, the Pressure-sensitive
Materials segment recorded $70.2, the Retail Information Services
segment recorded $869, the Office and Consumer Products segment
recorded $5.5, the other specialty converting businesses recorded
$28.5 and Corporate recorded $21.2.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Operating income for 2008 includes $28.4 of
restructuring costs, asset impairment and lease cancellation
charges and $17.9 of transition costs associated with acquisition
integrations, partially offset by ($4.5) related to a gain on sale
of investments; of the total $41.8, the Pressure-sensitive
Materials segment recorded $10, the Retail Information Services
segment recorded $26.4, the Office and Consumer Products segment
recorded $8.2, the other specialty converting businesses recorded
$1.7 and Corporate recorded ($4.5).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning in 2009, the Company modified its approach to allocating
Corporate costs to its operating segments to better reflect the
costs required to support operations within segment
results. Prior year amounts have been restated to conform with
the new methodology.
|
|
|
|
|
|
RECONCILIATION OF GAAP TO NON-GAAP SUPPLEMENTARY INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Year-to-Date
|
|
|
|
|
|
OPERATING INCOME (LOSS)
|
|
|
OPERATING MARGINS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2009
|
|
|
|
2008
|
|
|
2009
|
|
|
2008
|
|
|
Pressure-sensitive Materials
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income, as reported
|
|
|
|
$
|
126.1
|
|
|
$
|
217.0
|
|
|
5.1
|
%
|
|
7.7
|
%
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring costs
|
|
|
|
|
24.9
|
|
|
|
4.2
|
|
|
1.0
|
%
|
|
0.1
|
%
|
|
Asset impairment and lease cancellation charges
|
|
|
|
|
6.3
|
|
|
|
5.8
|
|
|
0.3
|
%
|
|
0.2
|
%
|
|
Legal settlement costs
|
|
|
|
|
39.0
|
|
|
|
---
|
|
|
1.6
|
%
|
|
---
|
|
|
Adjusted non-GAAP operating income
|
|
|
|
$
|
196.3
|
|
|
$
|
227.0
|
|
|
8.0
|
%
|
|
8.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Information Services
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (loss) income, as reported
|
|
|
|
$
|
(888.4
|
)
|
|
$
|
17.1
|
|
|
(91.3
|
%)
|
|
1.4
|
%
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring costs
|
|
|
|
|
31.4
|
|
|
|
5.7
|
|
|
3.2
|
%
|
|
0.5
|
%
|
|
Asset impairment and lease cancellation charges
|
|
|
|
|
5.6
|
|
|
|
2.8
|
|
|
0.6
|
%
|
|
0.3
|
%
|
|
Transition costs associated with acquisition integrations
|
|
|
|
|
---
|
|
|
|
17.9
|
|
|
---
|
|
|
1.5
|
%
|
|
Goodwill and indefinite-lived intangible asset impairment charges
|
|
|
|
|
832.0
|
|
|
|
---
|
|
|
85.5
|
%
|
|
---
|
|
|
Adjusted non-GAAP operating (loss) income
|
|
|
|
$
|
(19.4
|
)
|
|
$
|
43.5
|
|
|
(2.0
|
%)
|
|
3.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Office and Consumer Products
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income, as reported
|
|
|
|
$
|
98.9
|
|
|
$
|
104.1
|
|
|
15.4
|
%
|
|
14.7
|
%
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring costs
|
|
|
|
|
1.0
|
|
|
|
7.6
|
|
|
0.1
|
%
|
|
1.1
|
%
|
|
Asset impairment charges
|
|
|
|
|
4.5
|
|
|
|
0.6
|
|
|
0.7
|
%
|
|
---
|
|
|
Adjusted non-GAAP operating income
|
|
|
|
$
|
104.4
|
|
|
$
|
112.3
|
|
|
16.2
|
%
|
|
15.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other specialty converting
businesses
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (loss) income, as reported
|
|
|
|
$
|
(37.0
|
)
|
|
$
|
16.5
|
|
|
(10.3
|
%)
|
|
3.6
|
%
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring costs
|
|
|
|
|
12.6
|
|
|
|
1.7
|
|
|
3.5
|
%
|
|
0.3
|
%
|
|
Asset impairment charges
|
|
|
|
|
15.9
|
|
|
|
---
|
|
|
4.4
|
%
|
|
---
|
|
|
Adjusted non-GAAP operating (loss) income
|
|
|
|
$
|
(8.5
|
)
|
|
$
|
18.2
|
|
|
(2.4
|
%)
|
|
3.9
|
%
|
|
|
|
|
|
|
|
|
A-6
|
|
|
|
|
|
|
|
|
|
|
AVERY DENNISON
|
|
PRELIMINARY CONDENSED CONSOLIDATED BALANCE SHEET
|
|
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
Oct. 3, 2009
|
|
|
Sep. 27, 2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
91.9
|
|
|
|
|
$
|
81.3
|
|
|
Trade accounts receivable, net
|
|
|
|
1,008.6
|
|
|
|
|
|
1,120.7
|
|
|
Inventories, net
|
|
|
|
511.8
|
|
|
|
|
|
648.7
|
|
|
Other current assets
|
|
|
|
212.0
|
|
|
|
|
|
286.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets
|
|
|
1,824.3
|
|
|
|
|
|
2,136.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
|
|
1,393.3
|
|
|
|
|
|
1,543.3
|
|
|
Goodwill
|
|
|
|
962.2
|
|
|
|
|
|
1,775.0
|
|
|
Other intangibles resulting from business acquisitions, net
|
|
|
|
271.3
|
|
|
|
|
|
298.0
|
|
|
Non-current deferred and refundable income taxes
|
|
|
|
216.8
|
|
|
|
|
|
80.1
|
|
|
Other assets
|
|
|
|
426.7
|
|
|
|
|
|
551.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
5,094.6
|
|
|
|
|
$
|
6,385.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
Short-term and current portion of long-term debt
|
|
|
$
|
669.4
|
|
|
|
|
$
|
721.6
|
|
|
Accounts payable
|
|
|
|
650.5
|
|
|
|
|
|
730.6
|
|
|
Other current liabilities
|
|
|
|
668.4
|
|
|
|
|
|
673.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
1,988.3
|
|
|
|
|
|
2,125.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
|
1,115.7
|
|
|
|
|
|
1,545.2
|
|
|
Other long-term liabilities
|
|
|
|
690.6
|
|
|
|
|
|
615.8
|
|
|
Shareholders' equity:
|
|
|
|
|
|
|
|
|
|
|
Common stock
|
|
|
|
124.1
|
|
|
|
|
|
124.1
|
|
|
Capital in excess of par value
|
|
|
|
698.4
|
|
|
|
|
|
747.4
|
|
|
Retained earnings
|
|
|
|
1,472.4
|
|
|
|
|
|
2,382.3
|
|
|
Accumulated other comprehensive (loss) income
|
|
|
|
(170.8
|
)
|
|
|
|
|
75.0
|
|
|
Cost of unallocated ESOP shares
|
|
|
|
---
|
|
|
|
|
|
(3.8
|
)
|
|
Employee stock benefit trusts
|
|
|
|
(253.3
|
)
|
|
|
|
|
(358.7
|
)
|
|
Treasury stock at cost
|
|
|
|
(570.8
|
)
|
|
|
|
|
(867.7
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders' equity
|
|
|
1,300.0
|
|
|
|
|
|
2,098.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
5,094.6
|
|
|
|
|
$
|
6,385.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A-7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERY DENNISON
|
|
PRELIMINARY CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
|
|
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oct. 3, 2009
|
|
|
|
|
Sep. 27, 2008
|
|
|
|
|
|
|
|
|
|
(40 Weeks)
|
|
|
|
|
(39 Weeks)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
|
|
$
|
(796.6
|
)
|
|
|
|
$
|
223.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
139.8
|
|
|
|
|
|
154.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization
|
|
|
55.8
|
|
|
|
|
|
55.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for doubtful accounts
|
|
|
16.3
|
|
|
|
|
|
13.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill and indefinite-lived intangible asset impairment charges
|
|
|
832.0
|
|
|
|
|
|
---
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset impairments and net loss on sale and disposal of assets
|
|
|
39.3
|
|
|
|
|
|
16.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from debt extinguishment
|
|
|
21.2
|
|
|
|
|
|
---
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
|
|
|
19.8
|
|
|
|
|
|
24.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other non-cash expense and loss
|
|
|
16.2
|
|
|
|
|
|
3.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other non-cash income and gain
|
|
|
(7.2
|
)
|
|
|
|
|
(14.9
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
336.6
|
|
|
|
|
|
475.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in assets and liabilities and other adjustments, net of the
effect of business acquisitions
|
|
|
(19.7
|
)
|
|
|
|
|
(93.5
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
|
316.9
|
|
|
|
|
|
382.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property, plant and equipment
|
|
|
|
(46.7
|
)
|
|
|
|
|
(97.8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of software and other deferred charges
|
|
|
|
(20.4
|
)
|
|
|
|
|
(49.2
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payments for acquisitions
|
|
|
|
|
|
---
|
|
|
|
|
|
(130.6
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from sale of investments, net
|
|
|
|
|
0.3
|
|
|
|
|
|
16.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
|
(4.0
|
)
|
|
|
|
|
7.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing activities
|
|
|
|
|
(70.8
|
)
|
|
|
|
|
(254.4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net decrease in borrowings (maturities of 90 days or less)
|
|
|
(58.1
|
)
|
|
|
|
|
(386.3
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional borrowings (maturities longer than 90 days)
|
|
|
---
|
|
|
|
|
|
400.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payments of debt (maturities longer than 90 days)
|
|
|
|
(93.2
|
)
|
|
|
|
|
(0.7
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid
|
|
|
|
|
|
|
(112.3
|
)
|
|
|
|
|
(131.4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of treasury stock
|
|
|
|
|
|
---
|
|
|
|
|
|
(9.8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from exercise of stock options, net
|
|
|
|
---
|
|
|
|
|
|
2.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
|
2.0
|
|
|
|
|
|
8.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in financing activities
|
|
|
|
|
(261.6
|
)
|
|
|
|
|
(117.6
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of foreign currency translation on cash balances
|
|
|
1.9
|
|
|
|
|
|
(0.5
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Decrease) increase in cash and cash equivalents
|
|
|
|
(13.6
|
)
|
|
|
|
|
9.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, beginning of year
|
|
|
|
105.5
|
|
|
|
|
|
71.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end of period
|
|
$
|
91.9
|
|
|
|
|
$
|
81.3
|
|
Source: Avery Dennison Corporation
Avery Dennison Corporation
Media Relations:
David
Frail, 626-304-2014
communications@averydennison.com
or
Investor
Relations:
Eric M. Leeds, 626-304-2029
investorcom@averydennison.com
|
|
