Delaware
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1-11869
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13-3362547
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(State or other jurisdiction of
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(Commission
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(I.R.S. Employer
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incorporation or organization)
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File Number)
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Identification Number)
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¨
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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¨
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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¨
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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¨
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Exhibit No.
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Description
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99.1
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Press Release of FactSet Research Systems Inc., dated December 13, 2011
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FACTSET RESEARCH SYSTEMS INC.
(Registrant)
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Date: December 13, 2011
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By:
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/s/ Maurizio Nicolelli
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Maurizio Nicolelli
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Senior Vice President and Director of Finance
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(Principal Financial Officer)
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Exhibit No.
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Description of Document
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99.1
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Press Release of Registrant, dated December 13, 2011 reporting the results of operations for the Registrant’s first fiscal quarter ended November 30, 2011.
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Revenues rose 13% to $196.4 million
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●
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Expiration of the U.S. Federal R&D tax credit reduced GAAP EPS and non-GAAP EPS by $0.02
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Diluted EPS increased 13% to $0.99
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Non-GAAP diluted EPS grew 18% to $1.10
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●
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Free cash flow tripled to $49 million
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(Condensed and Unaudited)
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Three Months Ended
November 30,
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|||||||||||
(In thousands, except per share data)
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2011
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2010
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Change
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|||||||||
Revenues
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$ | 196,448 | $ | 173,289 | 13.4 | % | ||||||
Operating income
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66,753 | 59,429 | 12.3 | % | ||||||||
Provision for income taxes
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21,486 | 17,953 | 19.7 | % | ||||||||
Net income
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$ | 45,544 | $ | 41,601 | 9.5 | % | ||||||
Diluted earnings per share
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$ | 0.99 | $ | 0.88 | 12.5 | % | ||||||
Diluted weighted average shares
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46,103 | 47,487 | ||||||||||
Non-GAAP net income
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$ | 50,807 | $ | 44,124 | 15.1 | % | ||||||
Non-GAAP diluted earnings per share
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$ | 1.10 | $ | 0.93 | 18.3 | % |
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●
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ASV from U.S. operations was $533 million and $249 million was related to international operations.
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U.S. revenues were $134 million, up 14% from the year ago quarter.
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Non-U.S. revenues rose 13% to $62 million as compared to the same period in fiscal 2011.
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Cash and investments were $208 million at November 30, 2011.
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The effective tax rate was 32.1% as compared to 30.1% a year ago.
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The U.S. Federal R&D tax credit expires on December 31, 2011. The expiration increased the annual and first quarter effective tax rate by 1.3% and reduced quarterly diluted EPS by $0.02.
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Accounts receivable decreased $10 million over the past three months.
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Free cash flow generated during the quarter was $48.7 million, up $34.5 million over the prior year period.
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Client count was 2,271 at November 30, a net increase of 34 clients during the quarter.
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Annual client retention was greater than 95% of ASV, consistent with last year. On a client basis, the annual retention rate improved to 92% of clients at November 30 as compared to 90% a year ago, reflecting a reduction in client turnover.
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Employee count was 5,450 at November 30, an increase of 199 employees during the quarter.
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Capital expenditures were $6.1 million.
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A regular quarterly dividend of $12.2 million or $0.27 per share will be paid on December 20, 2011, to common stockholders of record as of November 30, 2011.
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The Company repurchased 150,000 shares for $14.6 million during the first quarter. At November 30, 2011, $128 million remains authorized for future repurchases.
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Common shares outstanding were 45.1 million at November 30, 2011.
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On October 24, 2011, the Company announced the election of Robin A. Abrams to its Board of Directors.
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Revenues are expected to range between $197 million and $200 million, which represents year over year growth of 11% and 13% at each end of the range.
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Operating margin is expected to range between 33.7% and 34.2%.
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GAAP diluted EPS should range between $0.99 and $1.01.
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Non-GAAP diluted EPS should range between $1.10 and $1.12, which represents year over year growth of 12% and 14% at each end of the range.
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●
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Both GAAP diluted EPS and non-GAAP diluted EPS include a $0.02 reduction to reflect the expiration of the U.S. Federal R&D tax credit on December 31, 2011.
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Three Months Ended
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||||||||
November 30, | ||||||||
(In thousands, except per share data)
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2011
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2010
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||||||
Revenues
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$ | 196,448 | $ | 173,289 | ||||
Operating expenses
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||||||||
Cost of services
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66,833 | 56,785 | ||||||
Selling, general and administrative
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62,862 | 57,075 | ||||||
Total operating expenses
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129,695 | 113,860 | ||||||
Operating income
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66,753 | 59,429 | ||||||
Other income
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277 | 125 | ||||||
Income before income taxes
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67,030 | 59,554 | ||||||
Provision for income taxes
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21,486 | 17,953 | ||||||
Net income
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$ | 45,544 | $ | 41,601 | ||||
Diluted earnings per common share
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$ | 0.99 | $ | 0.88 | ||||
Weighted average common shares (Diluted)
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46,103 | 47,487 |
November 30,
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August 31,
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|||||||
(In thousands)
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2011
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2011
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||||||
ASSETS
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Cash and cash equivalents
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$ | 193,754 | $ | 181,685 | ||||
Investments
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13,792 | - | ||||||
Accounts receivable, net of reserves
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64,833 | 75,004 | ||||||
Deferred taxes
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3,821 | 4,008 | ||||||
Prepaid expenses and other current assets
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11,361 | 12,473 | ||||||
Total current assets
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287,561 | 273,170 | ||||||
Property, equipment, and leasehold improvements, net
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80,065 | 81,620 | ||||||
Goodwill
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224,776 | 228,265 | ||||||
Intangible assets, net
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43,077 | 46,310 | ||||||
Deferred taxes
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19,970 | 20,166 | ||||||
Other assets
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8,057 | 7,909 | ||||||
Total assets
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$ | 663,506 | $ | 657,440 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY
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Accounts payable and accrued expenses
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$ | 29,216 | $ | 24,603 | ||||
Accrued compensation
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16,493 | 41,536 | ||||||
Deferred fees
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26,975 | 28,252 | ||||||
Taxes payable
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10,416 | 2,867 | ||||||
Dividends payable
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12,181 | 12,165 | ||||||
Total current liabilities
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95,281 | 109,423 | ||||||
Deferred taxes
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3,386 | 3,712 | ||||||
Taxes payable
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7,526 | 7,204 | ||||||
Deferred rent and other non-current liabilities
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20,948 | 21,913 | ||||||
Total liabilities
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$ | 127,141 | $ | 142,252 | ||||
Stockholders' Equity
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||||||||
Common stock
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$ | 616 | $ | 614 | ||||
Additional paid-in capital
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448,845 | 432,538 | ||||||
Treasury stock, at cost
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(839,114 | ) | (824,382 | ) | ||||
Retained earnings
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945,442 | 912,078 | ||||||
Accumulated other comprehensive loss
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(19,424 | ) | (5,660 | ) | ||||
Total stockholders' equity
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536,365 | 515,188 | ||||||
Total liabilities and stockholders' equity
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$ | 663,506 | $ | 657,440 |
Three Months Ended
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||||||||
November 30, | ||||||||
(In thousands)
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2011
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2010
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||||||
CASH FLOWS FROM OPERATING ACTIVITIES
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||||||||
Net income
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$ | 45,544 | $ | 41,601 | ||||
Adjustments to reconcile net income to net cash provided by operating activities
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||||||||
Depreciation and amortization
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8,403 | 9,392 | ||||||
Stock-based compensation expense
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5,880 | 3,677 | ||||||
Deferred income taxes
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57 | (1,151 | ) | |||||
Gain on sale of assets
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(1 | ) | (1 | ) | ||||
Tax benefits from share-based payment arrangements
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(3,178 | ) | (7,505 | ) | ||||
Changes in assets and liabilities
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||||||||
Accounts receivable, net of reserves
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10,171 | (4,176 | ) | |||||
Accounts payable and accrued expenses
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2,839 | 3,155 | ||||||
Accrued compensation
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(24,523 | ) | (32,087 | ) | ||||
Deferred fees
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(1,279 | ) | 550 | |||||
Taxes payable, net of prepaid taxes
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10,979 | 10,992 | ||||||
Prepaid expenses and other assets
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539 | (1,652 | ) | |||||
Deferred rent and other non-current liabilities
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(611 | ) | (704 | ) | ||||
Other working capital accounts, net
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(66 | ) | 93 | |||||
Net cash provided by operating activities
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54,754 | 22,184 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES
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Purchases of investments
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(15,000 | ) | - | |||||
Purchases of property, equipment and leasehold improvements, net of proceeds from dispositions
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(6,054 | ) | (8,021 | ) |
Net cash used in investing activities
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(21,054 | ) | (8,021 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES
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Dividend payments
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(12,084 | ) | (10,517 | ) | ||||
Repurchase of common stock
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(14,732 | ) | (26,107 | ) | ||||
Proceeds from employee stock plans
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7,420 | 20,145 | ||||||
Tax benefits from share-based payment arrangements
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3,178 | 7,505 | ||||||
Net cash used in financing activities
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(16,218 | ) | (8,974 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents
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(5,413 | ) | 1,421 | |||||
Net increase in cash and cash equivalents
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12,069 | 6,610 | ||||||
Cash and cash equivalents at beginning of period
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181,685 | 195,741 | ||||||
Cash and cash equivalents at end of period
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$ | 193,754 | $ | 202,351 |
(Unaudited)
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Three Months Ended
November 30,
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2011
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2010
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Change | ||||||||||
GAAP Net income
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$ | 45,544 | $ | 41,601 | ||||||||
Stock-based compensation, net of tax
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3,993 | 2,482 | ||||||||||
Amortization of intangible assets from acquisitions, net of tax
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1,270 | 1,455 | ||||||||||
Income tax benefits (a)
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- | (1,414 | ) | |||||||||
Non-GAAP net income
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$ | 50,807 | $ | 44,124 | ||||||||
GAAP Diluted earnings per common share
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$ | 0.99 | $ | 0.88 | ||||||||
Stock-based compensation, net of tax
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0.09 | 0.05 | ||||||||||
Amortization of intangible assets from acquisitions, net of tax
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0.03 | 0.03 | ||||||||||
Income tax benefits (a)
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- | (0.03 | ) | |||||||||
Non-GAAP diluted earnings per share (b)
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$ | 1.10 | $ | 0.93 | 18.3 | % | ||||||
(a)
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Income tax benefits represent adjustments to certain reserves to appropriately reflect settlements with taxing authorities from previously filed tax returns.
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(b)
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The sum of the diluted earnings per share may not equal the totals above due to rounding.
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(In thousands, except per share data)
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Q1‘12
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Q4’11
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Q3’11
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Q2’11
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Q1’11
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Q4’10
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Q3’10
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Q2’10
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Q1’10
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Q4’09
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Q3’09
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Q2’09
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Q1’09
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Q4’08
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Q3’08
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Q2’08
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Q1‘08
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GAAP Net income
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$45,544
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$40,880
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$43,311
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$45,254
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$41,601
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$39,291
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$38,658
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$36,119
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$36,143
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$36,274
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$38,536
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$34,555
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$35,585
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$33,584
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$32,542
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$29,492
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$29,399
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Stock-based compensation, net of tax
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3,993
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7,198
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3,475
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4,643
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2,482
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2,568
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2,750
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2,076
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1,969
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1,975
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1,990
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2,308
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2,746
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1,997
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2,013
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3,233
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1,791
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Amortization of intangible assets, net of tax
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1,270
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1,425
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1,462
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1,480
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1,455
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1,674
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1,286
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1,338
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1,386
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1,407
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1,346
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1,336
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1,388
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1,415
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1,323
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1,228
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1,198
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Income tax benefits (a)
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-
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-
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-
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(4,912)
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(1,414)
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(688)
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(1,648)
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-
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-
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-
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(3,021)
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-
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(1,428)
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-
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-
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-
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-
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Non-GAAP Net income
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$50,807
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$49,503
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$48,248
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$46,465
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$44,124
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$42,845
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$41,046
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$39,533
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$39,498
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$39,656
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$38,851
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$38,199
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$38,291
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$36,996
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$35,878
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$33,953
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$32,388
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GAAP Diluted earnings per share
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$0.99
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$0.88
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$0.92
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$0.95
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$0.88
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$0.83
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$0.81
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$0.75
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$0.74
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$0.74
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$0.79
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$0.71
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$0.73
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$0.67
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$0.65
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$0.59
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$0.58
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Stock-based compensation, net of tax
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0.09
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0.15
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0.07
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0.10
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0.05
|
0.05
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0.06
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0.04
|
0.04
|
0.04
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0.04
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0.05
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0.06
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0.04
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0.04
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0.06
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0.04
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Amortization of intangible assets, net of tax
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0.03
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0.03
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0.03
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0.03
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0.03
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0.04
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0.03
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0.03
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0.03
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0.03
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0.03
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0.03
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0.03
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0.03
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0.03
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0.02
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0.02
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Income tax benefits (a)
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-
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-
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-
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(0.10)
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(0.03)
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(0.01)
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(0.03)
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-
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-
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-
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(0.06)
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-
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(0.03)
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-
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-
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-
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-
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Non-GAAP Diluted earnings per share (b)
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$1.10
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$1.06
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$1.02
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$0.98
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$0.93
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$0.91
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$0.86
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$0.82
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$0.81
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$0.81
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$0.80
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$0.79
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$0.78
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$0.73
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$0.72
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$0.68
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$0.64
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% Change year over year
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18.3%
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16.5%
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18.6%
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19.5%
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14.8%
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12.3%
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7.5%
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3.8%
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3.8%
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11.0%
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11.1%
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16.2%
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21.9%
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15.9%
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26.3%
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23.6%
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23.1%
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(a)
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Income tax benefits represent adjustments to certain reserves from finalizing prior year tax returns and the reenactment of the U.S. Federal R&D tax credit retroactive to prior years.
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(b)
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The sum of the diluted earnings per share may not equal the totals above due to rounding.
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