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Attachment
-- Consolidated Statements of Income-- Consolidated Balance Sheet-- Q4 2012 Consolidated Statement of Cash Flows-- Full Year 2012 Consolidated Statement of Cash Flows-- Q4 2012 Data Supplement Sheet-- Twelve Months Ended December 31, 2012 Data Supplement Sheet-- Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow-- Reconciliation of GAAP to Non-GAAP Financial Measures for Full Year 2013 Guidance WABCO HOLDINGS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME Three Months Ended Year Ended December 31, December 31, 2012 2011 2012 2011 ----------------------------------------------------(Amounts in millions, except share and per share data)Sales $ 596.5 $ 672.0 $ 2,477.4 $ 2,794.1Cost of sales 421.3 482.5 1,737.2 1,986.1 ----------------------------------------------------Gross profit 175.2 189.5 740.2 808.0Costs and expenses: Selling and administrative expenses 78.7 73.9 308.2 327.2 Product engineering expenses 26.6 24.5 104.3 105.1 Other operating expense, net 0.9 0.6 3.2 5.8 ----------------------------------------------------Operating income 69.0 90.5 324.5 369.9 Equity income of unconsolidated joint ventures, net 4.4 4.1 18.1 16.5 Other non-operating expense, net (2.9) (1.2) (5.0) (2.9) Indemnification settlements, net - - - 23.1 Interest expense, net (0.4) (0.2) (1.5) (1.7) ----------------------------------------------------Income before income taxes 70.1 93.2 336.1 404.9Income tax expense 8.1 20.1 23.6 36.7 ----------------------------------------------------Net income including noncontrolling interests 62.0 73.1 312.5 368.2 Less: Net income attributable to noncontrolling interests 2.3 3.3 10.5 11.2 ----------------------------------------------------Net income attributable to Company $ 59.7 $ 69.8 $ 302.0 $ 357.0Net income attributable to Company per common share Basic $ 0.95 $ 1.07 $ 4.73 $ 5.35 Diluted $ 0.93 $ 1.04 $ 4.62 $ 5.19Cash dividend per share of common stock $ - $ - $ - $ -Weighted average common shares outstanding Basic 63,082,556 65,324,131 63,906,992 66,693,064 Diluted 64,373,587 66,816,106 65,323,389 68,829,440 WABCO HOLDINGS INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET December 31, December 31,(Amounts in millions, except share data) 2012 2011----------------------------------------------------------------------------ASSETSCurrent assets: Cash and cash equivalents $ 175.0 $ 102.4 Accounts receivable, less allowance for doubtful accounts: $3.6 in 2012; $3.4 in 2011 301.5 296.3 Inventories 191.8 198.0 Taxes receivable on income - 18.5 Future income tax benefits 13.8 8.7 Restricted cash 26.0 34.4 Guaranteed notes receivable 41.2 40.0 Other current assets 43.3 52.4 ------------------------------ Total current assets 792.6 750.7Property, plant and equipment, less accumulated depreciation 389.0 357.4Goodwill 371.7 363.9Long-term future income tax benefits 91.5 58.8Investments in unconsolidated joint ventures 20.5 16.5Intangible assets, net 39.4 35.6Other assets 42.3 40.3 ------------------------------TOTAL ASSETS $ 1,747.0 $ 1,623.2 ------------------------------ ------------------------------LIABILITIES AND EQUITYCurrent liabilities: Loans payable to banks $ 76.2 $ 26.2 Accounts payable 115.4 137.8 Accrued payroll 94.2 108.1 Current portion of warranties 33.8 42.3 Taxes payable 5.7 - Indemnification liabilities - 11.2 Income tax liabilities - 4.9 Other accrued liabilities 120.4 121.1 ------------------------------ Total current liabilities 445.7 451.6Long-term debt - 52.0Post-retirement benefits 430.6 348.6Deferred tax liabilities 29.9 25.8Long-term income tax liabilities 47.7 67.0Other liabilities 64.4 42.4 ------------------------------Total Liabilities 1,018.3 987.4Shareholders' equity: Preferred stock, 4,000,000 shares authorized; none issued and outstanding Common stock, $.01 par value, 400,000,000 shares authorized; shares issued: 75,755,306 in 2012; 74,242,930 in 2011; and shares outstanding: 62,747,151 in 2012; 64,765,655 in 2011 0.7 0.7 Capital surplus 735.5 693.4 Treasury stock, at cost: 13,008,155 shares in 2012; 9,477,275 shares in 2011 (655.8) (456.8) Retained earnings 718.6 416.6 Accumulated other comprehensive income Foreign currency translation adjustments (15.4) (16.1) Unrealized losses on benefit plans, net of tax (107.2) (50.6) ------------------------------Total shareholders' equity 676.4 587.2Noncontrolling interests 52.3 48.6 ------------------------------Total equity 728.7 635.8 ------------------------------TOTAL LIABILITIES AND EQUITY $ 1,747.0 $ 1,623.2 ------------------------------ ------------------------------ WABCO HOLDINGS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) Three Months Ended December 31, ---------------------- 2012 2011 ----------------------(Amounts in millions)Operating activities: Net income including noncontrolling interests $ 62.0 $ 73.1 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 15.9 16.5 Amortization of intangibles 3.0 3.0 Equity in earnings of unconsolidated joint ventures, net of dividends received (1.3) 2.0 Non-cash stock compensation 3.4 3.6 Deferred income tax benefit 12.8 13.5 Loss on sale or disposal of property, plant and equipment 0.3 0.4 Changes in assets and liabilities: Accounts receivable, net 18.7 30.4 Inventories 15.0 37.7 Accounts payable (29.8) (22.2) Other accrued liabilities and taxes (40.6) (44.4) Post-retirement benefits 0.2 (2.3) Other current and long-term assets (9.2) (50.3) Other long-term liabilities 25.9 25.0 ----------------------Net cash provided by operating activities 76.3 86.0 ----------------------Investing activities: Purchases of property, plant and equipment (31.2) (38.4) Investments in capitalized software (2.0) (1.2) ----------------------Net cash used in investing activities (33.2) (39.6) ----------------------Financing activities: Net repayments of revolving credit facilities (59.0) (35.0) Repayments of capital leases (0.1) - Net borrowings of short-term debt 9.8 5.7 Purchases of treasury stock (51.4) (53.4) Dividends to noncontrolling interest holders (0.9) (0.9) Proceeds from exercise of stock options 7.1 1.9 ----------------------Net cash used in financing activities (94.5) (81.7) ----------------------Effect of exchange rate changes on cash and cash equivalents 1.4 (7.0) ----------------------Net decrease in cash and cash equivalents (50.0) (42.3)Cash and cash equivalents at beginning of period 225.0 144.7 ----------------------Cash and cash equivalents at end of period $ 175.0 $ 102.4 ---------------------- ---------------------- WABCO HOLDINGS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS Year Ended December 31, ---------------------- 2012 2011 ----------------------(Amounts in millions)Operating activities: Net income including noncontrolling interests $ 312.5 $ 368.2 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 65.6 66.4 Amortization of intangibles 11.3 11.8 Equity in earnings of unconsolidated joint ventures, net of dividends received (3.0) (2.1) Non-cash stock compensation 14.3 13.7 Deferred income tax (expense) / benefit (2.9) 1.9 Loss on sale or disposal of property, plant and equipment 0.3 1.1 Indemnification settlements, net - (23.1) Changes in assets and liabilities: Accounts receivable, net (6.2) (40.1) Inventories 5.7 (14.8) Accounts payable (23.0) (18.1) Other accrued liabilities and taxes (37.9) (4.4) Post-retirement benefits (3.5) (2.3) Other current and long-term assets 23.0 (34.8) Other long-term liabilities 2.1 8.6 ----------------------Net cash provided by operating activities 358.3 332.0 ----------------------Investing activities: Purchases of property, plant and equipment (91.7) (98.3) Investments in capitalized software (8.8) (6.9) Acquisitions, net (5.1) - ----------------------Net cash used in investing activities (105.6) (105.2) ----------------------Financing activities: Net repayments of revolving credit facilities (11.6) (46.6) Borrowings / (payments) of capital leases 0.6 (0.2) Net borrowings of short-term debt 3.6 10.4 Purchases of treasury stock (198.3) (178.9) Dividends to noncontrolling interest holders (5.5) (4.8) Proceeds from exercise of stock options 28.6 36.6 ----------------------Net cash used in financing activities (182.6) (183.5) ----------------------Effect of exchange rate changes on cash and cash equivalents 2.5 (8.0)Net increase in cash and cash equivalents 72.6 35.3Cash and cash equivalents at beginning of period 102.4 67.1 ----------------------Cash and cash equivalents at end of period $ 175.0 $ 102.4 ---------------------- ----------------------Cash paid during the period for: Interest $ 1.1 $ 1.1 Income taxes $ 30.3 $ 54.1 Non cash items for the period: Treasury stock purchase accrual $ 2.5 $ 1.7 WABCO HOLDINGS INC. Q4 2012 Data Supplement Sheet (Unaudited) Quarter Ended December 31,(Amounts in millions, % of % of except per share Sales/ Sales/ Chg % Chg data) Adj Adj vs. vs. 2012 Sales 2011 Sales 2011 2011 ------------------------------------------------------SalesReported $ 596.5 $ 672.0 $ (75.5) -11.2% Foreign exchange translational effects 22.3 - 22.3 ---------- ---------- ----------Adjusted Sales $ 618.8 $ 672.0 $ (53.2) -7.9% ---------- ---------- ---------- ---------- ---------- ----------Gross ProfitReported $ 175.2 29.4% $ 189.5 28.2% $ (14.3) -7.5% Streamlining costs 1.5 (0.2) 1.7 Separation costs 0.2 0.2 - ---------- ---------- ----------Performance Gross Profit $ 176.9 29.7% $ 189.5 28.2% $ (12.6) -6.6% Foreign exchange translational effects 6.2 - 6.2 ---------- ---------- ----------Adjusted Gross Profit $ 183.1 29.6% $ 189.5 28.2% $ (6.4) -3.4% ---------- ---------- ---------- ---------- ---------- ----------Selling, Administrative, Product Engineering Expenses and OtherReported $ 106.2 17.8% $ 99.0 14.7% $ 7.2 7.3% Streamlining costs (3.8) (0.1) (3.7) Separation costs (0.5) 0.1 (0.6) ---------- ---------- ----------Performance Selling, Administrative, Product Engineering Expenses and Other $ 101.9 17.1% $ 99.0 14.7% $ 2.9 2.9% Foreign exchange translational effects 3.0 - 3.0 ---------- ---------- ----------Adjusted Selling, Administrative, Product Engineering Expenses and Other $ 104.9 16.9% $ 99.0 14.7% $ 5.9 5.9% ---------- ---------- ---------- ---------- ---------- ----------Operating IncomeReported $ 69.0 11.6% $ 90.5 13.5% $ (21.5) -23.8% Streamlining costs 5.3 (0.1) 5.4 Separation costs 0.7 0.1 0.6 ---------- ---------- ----------Performance Operating Income $ 75.0 12.6% $ 90.5 13.5% (15.5) -17.1% Foreign exchange translational effects 3.2 - 3.2 ---------- ---------- ----------Adjusted Operating Income $ 78.2 12.6% $ 90.5 13.5% $ (12.3) -13.6% ---------- ---------- ---------- ---------- ---------- ----------EBIT (Earnings Before Interest and Taxes)Reported Operating Income/(Loss) $ 69.0 $ 90.5 $ (21.5) Equity in Income of Unconsolidated Joint Venture 4.4 4.1 0.3 Other non-operating expense, net (2.9) (1.3) (1.6) Net income attributable to noncontrolling interest (2.3) (3.3) 1.0 ---------- ---------- ----------EBIT $ 68.2 11.4% $ 90.0 13.4% $ (21.8) -24.2% Streamlining costs 5.3 (0.1) 5.4 Separation costs 4.3 0.1 4.2 ---------- ---------- ----------Performance EBIT (Earnings Before Interest and Taxes) $ 77.8 13.0% $ 90.0 13.4% $ (12.2) -13.6% Foreign exchange translational effects 3.0 - 3.0 ---------- ---------- ----------Adjusted EBIT (Earnings Before Interest and Taxes) $ 80.8 13.1% $ 90.0 13.4% $ (9.2) -10.2% ---------- ---------- ---------- ---------- ---------- ----------Pre-Tax IncomeEBIT $ 68.2 $ 90.0 $ (21.8) Interest (expense)/income, net (0.4) (0.2) (0.2) ---------- ---------- ----------Pre-Tax Income $ 67.8 $ 89.8 $ (22.0) Streamlining costs 5.3 (0.1) 5.4 Separation costs 4.3 0.1 4.2 ---------- ---------- ----------Performance Pre-Tax Income $ 77.4 $ 89.8 $ (12.4) Tax rate on a performance basis 10.1% 10.1%Net Income Attributable to CompanyReported Net Income Attributable to Company $ 59.7 $ 69.8 $ (10.1) Streamlining cost, net of tax 4.5 (0.1) 4.6 Tax items 1.3 10.9 (9.6) Separation costs, net of tax and separation related taxes 4.1 0.1 4.0 ---------- ---------- ----------Performance Net Income Attributable to Company $ 69.6 $ 80.7 $ (11.1) ---------- ---------- ---------- ---------- ---------- ----------Performance Net Income Attributable to Company per Diluted Common Share $ 1.08 $ 1.21Common Shares Outstanding - Diluted 64.4 66.8
