Footnotes
(1) Prior-period amounts have been reclassified to reflect the current presentation.(2) Revenues from ongoing businesses are revenues from reportable segments and Corporate & Other (which includes the Media business) less eliminations. Other businesses (see note (3) below) are excluded.(3) Other businesses are businesses that have been or are expected to be exited through sale or closure that did not qualify for discontinued operations classification.(millions of U.S. dollars) Three Months Ended Nine Months Ended September 30, September 30, ------------------- -------------------Other businesses 2012 2011 2012 2011 --------- --------- --------- ---------Revenues $ 51 $ 256 $ 338 $ 795 ========= ========= ========= =========Operating profit $ 15 $ 75 $ 25 $ 176Depreciation and amortization of computer software - 2 5 33 --------- --------- --------- ---------EBITDA $ 15 $ 77 $ 30 $ 209 ========= ========= ========= =========(4) Thomson Reuters defines adjusted EBITDA as underlying operating profit excluding the related depreciation and amortization of computer software but including integration programs expense. Adjusted EBITDA margin is adjusted EBITDA expressed as a percentage of revenues from ongoing businesses.(5) Underlying operating profit is operating profit from reportable segments and Corporate & Other (includes Media). Underlying operating profit margin is the underlying operating profit expressed as a percentage of revenues from ongoing businesses.(6) Adjusted earnings from continuing operations and adjusted earnings per share from continuing operations include dividends declared on preference shares and integration programs expense, but exclude the pre- tax impacts of amortization of other identifiable intangible assets as well as the post-tax impacts of fair value adjustments, other operating (gains) and losses, certain impairment charges, the results of Other businesses (see note (3) above), other finance (income) costs, Thomson Reuters share of post-tax (earnings) losses in equity method investees, discontinued operations and other items affecting comparability. Adjusted earnings per share from continuing operations is calculated using diluted weighted average shares and does not represent actual earnings or loss per share attributable to shareholders.(7) Adjustment to reflect income taxes based on estimated full-year effective tax rate. Reported earnings or loss for interim periods reflect income taxes based on the estimated effective tax rates of each of the jurisdictions in which Thomson Reuters operates. The adjustment reallocates estimated full-year income taxes between interim periods, but has no effect on full year income taxes.(8) Free cash flow is net cash provided by operating activities less capital expenditures, other investing activities and dividends paid on the company's preference shares. Other businesses (see note (3) above) are also removed to arrive at free cash flow from ongoing operations. Thomson Reuters Corporation Consolidated Income Statement (millions of U.S. dollars, except per share data) (unaudited) Three Months Ended Nine Months Ended September 30, September 30, -------------------------- -------------------------- 2012 2011 2012 2011 ------------ ------------ ------------ ------------Revenues $ 3,216 $ 3,453 $ 9,879 $ 10,230Operating expenses (2,371) (2,363) (7,289) (7,393)Depreciation (104) (107) (323) (324)Amortization of computer software (175) (155) (516) (481)Amortization of other identifiable intangible assets (158) (152) (459) (446)Other operating (losses) gains, net (18) (17) 802 302 ------------ ------------ ------------ ------------Operating profit 390 659 2,094 1,888Finance costs, net: Net interest expense (90) (102) (295) (301) Other finance income (costs) 30 (35) 44 (19) ------------ ------------ ------------ ------------Income before tax and equity method investees 330 522 1,843 1,568Share of post tax earnings (losses) in equity method investees 2 4 (1) 11Tax benefit (expense) 140 (145) (106) (371) ------------ ------------ ------------ ------------Earnings from continuing operations 472 381 1,736 1,208Earnings (loss) from discontinued operations, net of tax 2 - (1) 2 ------------ ------------ ------------ ------------Net earnings $ 474 $ 381 $ 1,735 $ 1,210 ============ ============ ============ ============Earnings attributable to: Common shareholders 462 369 1,698 1,182 Non-controlling interests 12 12 37 28Basic earnings per share $ 0.56 $ 0.44 $ 2.05 $ 1.41 ============ ============ ============ ============Diluted earnings per share $ 0.56 $ 0.44 $ 2.04 $ 1.41 ============ ============ ============ ============Basic weighted average common shares 826,257,191 834,645,519 827,804,739 835,624,471 ============ ============ ============ ============Diluted weighted average common shares 828,405,144 836,712,254 829,747,967 838,203,018 ============ ============ ============ ============ Thomson Reuters Corporation Consolidated Statement of Financial Position (millions of U.S. dollars) (unaudited) September 30, December 31, 2012 2011 ------------- -------------AssetsCash and cash equivalents $ 769 $ 422Trade and other receivables 1,772 1,984Other financial assets 81 100Prepaid expenses and other current assets 604 641 ------------- -------------Current assets excluding assets held for sale 3,226 3,147Assets held for sale 141 767 ------------- -------------Current assets 3,367 3,914Computer hardware and other property, net 1,364 1,509Computer software, net 1,679 1,640Other identifiable intangible assets, net 8,215 8,471Goodwill 16,583 15,932Other financial assets 390 425Other non-current assets 552 535Deferred tax 42 50 ------------- -------------Total assets $ 32,192 $ 32,476 ============= =============Liabilities and equityLiabilitiesCurrent indebtedness $ 1,007 $ 434Payables, accruals and provisions 2,442 2,675Deferred revenue 1,138 1,379Other financial liabilities 97 81 ------------- -------------Current liabilities excluding liabilities associated with assets held for sale 4,684 4,569Liabilities associated with assets held for sale 18 35 ------------- -------------Current liabilities 4,702 4,604Long-term indebtedness 6,255 7,160Provisions and other non-current liabilities 2,689 2,513Other financial liabilities 8 27Deferred tax 1,176 1,422 ------------- -------------Total liabilities 14,830 15,726EquityCapital 10,331 10,288Retained earnings 8,197 7,633Accumulated other comprehensive loss (1,508) (1,516) ------------- -------------Total shareholders' equity 17,020 16,405Non-controlling interests 342 345 ------------- -------------Total equity 17,362 16,750 ------------- -------------Total liabilities and equity $ 32,192 $ 32,476 ============= ============= Thomson Reuters Corporation Consolidated Statement of Cash Flow (millions of U.S. dollars) (unaudited) Three Months Ended Nine Months Ended September 30, September 30, -------------------- -------------------- 2012 2011 2012 2011 --------- --------- --------- ---------Cash provided by (used in):Operating activitiesNet earnings $ 474 $ 381 $ 1,735 $ 1,210Adjustments for: Depreciation 104 107 323 324 Amortization of computer software 175 155 516 481 Amortization of other identifiable intangible assets 158 152 459 446 Net losses (gains) on disposals of businesses and investments 11 (3) (815) (389) Deferred tax (97) (55) (216) (229) Other (65) (3) (41) 161Changes in working capital and other items (153) (158) (211) (349) --------- --------- --------- ---------Net cash provided by operating activities 607 576 1,750 1,655 --------- --------- --------- ---------Investing activitiesAcquisitions, net of cash acquired (1,015) (388) (1,275) (1,114)(Payments for) proceeds from disposals, net of taxes paid (176) (5) 1,807 505Capital expenditures, less proceeds from disposals (232) (218) (726) (759)Other investing activities 1 2 8 39 --------- --------- --------- ---------Investing cash flows from continuing operations (1,422) (609) (186) (1,329)Investing cash flows from discontinued operations - 12 90 51 --------- --------- --------- ---------Net cash used in investing activities (1,422) (597) (96) (1,278) --------- --------- --------- ---------Financing activitiesRepayments of debt - (593) (2) (646)Net borrowings (repayments) under short-term loan facilities - 1,083 (423) 1,063Repurchases of common shares - (319) (168) (319)Dividends paid on preference shares - - (2) (2)Dividends paid on common shares (254) (247) (766) (712)Other financing activities 32 (17) 52 (31) --------- --------- --------- ---------Net cash used in financing activities (222) (93) (1,309) (647) --------- --------- --------- ---------Translation adjustments on cash and cash equivalents 5 (10) 2 (5) --------- --------- --------- ---------(Decrease) increase in cash and cash equivalents (1,032) (124) 347 (275)Cash and cash equivalents at beginning of period 1,801 713 422 864 --------- --------- --------- ---------Cash and cash equivalents at end of period $ 769 $ 589 $ 769 $ 589 ========= ========= ========= =========
(1) These and other non-IFRS financial measures are defined and reconciled to the most directly comparable IFRS measures in the tables appended to this news release. Additional information is provided in the explanatory note at the end of this news release.
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