EX-99.1 2 d598332dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

LOGO

Jabil Posts Fourth Quarter & Fiscal Year 2013 Results

Solid Revenue Growth and Strong Cash Flow Generation

St. Petersburg, FL – September 25, 2013...Today Jabil Circuit, Inc. (NYSE: JBL), announced preliminary, unaudited financial results for its fourth quarter and full fiscal year, ended August 31, 2013.

“Delivering record revenues, generating more than a billion dollars of cash flow from operations, and achieving a core return on invested capital of 21 percent are clear highlights of our fiscal year,” said Jabil’s Chief Executive Officer Mark Mondello. “In addition, we are pleased to return nearly $200 million in capital to shareholders through dividends and share repurchases, while continuing to thoughtfully invest capital back into the business, both organically and acquisitively, with an eye on long-term earnings growth,” said Mondello.

The company reported fourth quarter revenue of $4.8 billion and fiscal year revenue of $18.3 billion.

Jabil’s three reporting segments delivered the following revenue results for the company’s fourth fiscal quarter:

 

    Diversified Manufacturing: $2.1 billion.

 

    Enterprise & Infrastructure: $1.4 billion.

 

    High Velocity: $1.3 billion.

“I would like to acknowledge the continued dedication of our employees because it is their efforts and commitment that truly differentiate Jabil and enable us to achieve our goals,” said Mondello.

Generally accepted accounting principles (GAAP) operating income for the fourth quarter was $88.4 million and $511.4 million for the full fiscal year, ended August 31, 2013. GAAP diluted earnings per share for the fourth quarter were $0.61 and $1.79 for the fiscal year. The company said that $89.5 million in restructuring activity during the year and a $25.6 million non-cash charge related to a note receivable and related charges in the third quarter impacted the fiscal year GAAP operating income and $61.1 million in restructuring activity impacted the fourth quarter GAAP operating income.

Core operating income results, excluding amortization of intangibles, stock-based compensation and related charges, restructuring and related charges, impairment of notes receivable and related charges and acquisition costs and purchase accounting adjustments, was $721.1 million and core diluted earnings per share was $2.26.

(Definitions used: “GAAP” means U.S. generally accepted accounting principles. Jabil defines core operating income as GAAP operating income before amortization of intangibles, stock-based compensation expense and related charges, restructuring and related charges, impairment of notes receivable and related charges, goodwill impairment charges, certain distressed customer charges, settlement of receivables and related charges, loss on disposal of subsidiaries and acquisition costs and purchase accounting adjustments. Jabil defines core earnings as GAAP net income before amortization of intangibles, stock-based compensation expense and related charges, restructuring and related charges, impairment of notes receivable and related charges, goodwill impairment charges, certain distressed customer charges, settlement of receivables and related charges, loss on disposal of subsidiaries, acquisition costs and purchase accounting adjustments, certain other expenses, net of tax and certain deferred tax valuation allowance charges. Jabil defines core diluted earnings per share as core earnings divided by the


weighted average number of outstanding diluted shares determined under GAAP. Jabil calculates core return on invested capital by annualizing its after-tax core operating income for its most recently-ended quarter and dividing that by a two quarter average net invested capital base. Jabil reports core operating income, core earnings, core diluted and basic earnings per share and core return on invested capital to provide investors an additional method for assessing operating income, earnings, diluted earnings per share and return on invested capital from what it believes are its core manufacturing operations. See the accompanying reconciliation of Jabil’s core operating income to its GAAP operating income, its calculation of core earnings and core diluted earnings per share to its GAAP net income and GAAP earnings per share, its calculation of core return on invested capital and additional information in the supplemental information.)

 

Quarterly Results

   Q4 2013    Q4 2012

Net revenue

   $4.8 billion    $4.3 billion

GAAP operating income

   $88.4 million    $144.3 million

GAAP net income

   $127.0 million    $82.8 million

GAAP diluted earnings per share

   $0.61    $0.39

GAAP return on invested capital

     22%      17%

Core operating income

   $181.4 million    $175.1 million

Core earnings

   $117.2 million    $113.3 million

Core diluted earnings per share

   $0.56    $0.54

Core return on invested capital

     21%      22%
     

Fiscal Year Results

   Fiscal 2013    Fiscal 2012

Net revenue

   $18.3 billion    $17.2 billion

GAAP operating income

   $511.4 million    $621.9 million

GAAP net income

   $371.5 million    $394.7 million

GAAP diluted earnings per share

   $1.79    $1.87

GAAP return on invested capital

     17%      22%

Core operating income

   $721.1 million    $736.2 million

Core earnings

   $469.9 million    $507.1 million

Core diluted earnings per share

   $2.26    $2.40

Core return on invested capital

     21%      26%

Business Update

“We are fortunate to have a strong balance sheet, broad-based capabilities that deliver innovative solutions, outstanding employees and a roster of market-leading customers as we head into fiscal year 2014,” said Jabil CEO, Mark Mondello. Jabil provided guidance for its first fiscal quarter of 2014, which began on September 1st.

Fiscal Q1 2014 Guidance:

 

 

Net revenue

   $4.35 billion to $4.65 billion

Core operating income

   $165 million to $195 million

Core earnings per share

   $0.50 to $0.60 per diluted share

GAAP operating income

   $110 million to $140 million

GAAP earnings per share

   $0.25 to $0.35 per diluted share

(GAAP earnings per share for the first quarter of fiscal 2014 are currently estimated to include $0.03 per share for amortization of intangibles, $0.09 per share for stock-based compensation and $0.13 per share for restructuring and related charges.)


Year over Year Segment Revenue Guidance:

 

    Diversified Manufacturing Services to increase 7 percent.

 

    Enterprise & Infrastructure to remain consistent.

 

    High Velocity to decline 25 percent.

In addition to the segment guidance, Jabil said its previously announced restructuring of global operations continued through the quarter. It is currently estimated that the balance of $99 million will be recorded in fiscal years 2014 and 2015.

The company also announced it expects approximately $35 to $85 million of charges in fiscal year 2014 related to ongoing discussions with Blackberry, Jabil’s second largest customer in fiscal 2013.

FORWARD LOOKING STATEMENT: This news release contains forward-looking statements, including those regarding our anticipated financial results for our fourth quarter of fiscal year 2013 and our full fiscal year 2013; our thoughtful investment of capital back into the business, both organically and acquisitively, with an eye on long term earnings growth; our balance sheet, capabilities, employees and customers as we head into fiscal year 2014; and our currently expected first quarter of fiscal year 2014 net revenue (including that of our segments), core operating income, GAAP operating income, core and GAAP earnings per share results and the components thereof. The statements in this news release are based on current expectations, forecasts and assumptions involving risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include, but are not limited to: our determination as we finalize our financial results for our fourth quarter of fiscal year 2013 and our full fiscal year 2013 that our financial results and conditions differ from our current preliminary unaudited numbers set forth herein; changes to our capital investment strategy over time; our ability to generate long term earnings growth from our capital investments; fluctuations in our stock’s market price; fluctuations in operating results and cash flows; unexpected, adverse seasonal impacts on demand; changes in macroeconomic conditions, both in the U.S. and internationally; our financial performance during and after the current economic conditions; our ability to maintain and improve costs, quality and delivery for our customers; risks and costs inherent in litigation; whether our realignment of our capacity will adversely affect our cost structure, ability to service customers and labor relations; our ability to take advantage of perceived benefits of offering customers vertically integrated services; changes in technology; competition; anticipated growth for us and our industry that may not occur; managing rapid growth; managing rapid declines in customer demand and other related customer challenges that may occur; our ability to successfully consummate acquisitions and divestitures; managing the integration of businesses we acquire; risks associated with international sales and operations; retaining key personnel; our dependence on a limited number of large customers; business and competitive factors generally affecting the electronic manufacturing services industry, our customers and our business; other factors that we may not have currently identified or quantified; and other risks, relevant factors and uncertainties identified in our Annual Report on Form 10-K for the fiscal year ended August 31, 2012, subsequent Reports on Forms 10-Q and 8-K and our other securities filings. Jabil disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Supplemental Information: The financial results disclosed in this release include certain measures calculated and presented in accordance with GAAP. In addition to the GAAP financial measures, Jabil provides supplemental, non-GAAP financial measures to facilitate evaluation of Jabil’s core operating performance. The non-GAAP financial measures disclosed in this release exclude certain amounts that are included in the most directly comparable GAAP measures. The non-GAAP or core financial measures disclosed in this release do not have standard meanings and may vary from the non-GAAP financial measures used by other companies. Management believes core financial measures (which exclude the effects of the amortization of intangibles, stock-based compensation expense and related charges, restructuring and related charges, impairment of notes receivable and related charges, goodwill impairment charges, certain distressed customer charges, settlement of receivables and related charges, loss on disposal of subsidiaries, acquisition costs and purchase accounting adjustments, certain other expenses, net of tax and certain deferred tax valuation allowance charges) are a useful measure that facilitates evaluating the past and future performance of Jabil’s ongoing operations on a comparable basis. Jabil reports core operating income, core return on invested capital, core earnings and core diluted and basic earnings per share to provide investors an additional method for assessing operating income, earnings and earnings per share from what it believes are its core manufacturing operations. Included in this release are Condensed Consolidated Statements of Operations as well as a reconciliation of the disclosed core financial measures to the most directly comparable GAAP financial measures.

Company Conference Call Information: Jabil will hold a conference call to discuss the fourth fiscal quarter 2013 earnings today at 4:30 p.m. ET live on the Internet at http://www.jabil.com. The call will be recorded and archived on the web at http://www.jabil.com. A taped replay of the conference call will also be available September 25, 2013 at approximately 7:30 p.m. ET through midnight on October 2, 2013. To access the replay, call (855) 859-2056 from within the United States, or (404) 537-3406 outside the United States. The pass code is: 55279234. An archived webcast of the conference call will be available at http://www.jabil.com/investors/.


About Jabil

Jabil is an electronic product solutions company providing comprehensive electronics design, manufacturing and aftermarket product management services to global electronics and technology companies. Offering complete product supply chain management from facilities in 31 countries, Jabil provides comprehensive, individualized-focused solutions to customers in a broad range of industries. Jabil common stock is traded on the New York Stock Exchange under the symbol, “JBL”. Further information is available on Jabil’s website: jabil.com.

Investor & Media Contact:

Beth Walters

Senior Vice President, Investor Relations & Communications

Jabil Circuit, Inc.

(727) 803-3511

beth_walters@jabil.com


JABIL CIRCUIT, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

(Unaudited)

 

     August 31,
2013
    August 31,
2012
 
ASSETS     

Current assets:

    

Cash and cash equivalents

   $ 1,011,373      $ 1,217,256   

Accounts receivable, net

     1,281,425        1,125,015   

Inventories

     2,302,155        2,268,949   

Prepaid expenses and other current assets

     1,165,984        989,326   

Income taxes receivable

     13,048        10,949   

Deferred income taxes

     46,260        27,833   
  

 

 

   

 

 

 

Total current assets

     5,820,245        5,639,328   

Property, plant and equipment, net

     2,395,598        1,779,155   

Goodwill and intangible assets, net

     740,435        214,071   

Deferred income taxes

     94,069        73,411   

Other assets

     103,434        97,176   
  

 

 

   

 

 

 

Total assets

   $ 9,153,781      $ 7,803,141   
  

 

 

   

 

 

 
LIABILITIES AND EQUITY     

Current liabilities:

    

Current installments of notes payable, long-term debt and capital lease obligations

   $ 215,536      $ 18,031   

Accounts payable

     3,301,235        2,992,865   

Accrued expenses

     1,301,078        808,480   

Income taxes payable

     40,332        35,665   

Deferred income taxes

     6,253        3,955   
  

 

 

   

 

 

 

Total current liabilities

     4,864,434        3,858,996   

Notes payable, long-term debt and capital lease obligations, less current installments

     1,690,426        1,658,326   

Other liabilities

     89,813        85,714   

Income tax liabilities

     80,368        68,525   

Deferred income taxes

     73,173        24,245   
  

 

 

   

 

 

 

Total liabilities

     6,798,214        5,695,806   
  

 

 

   

 

 

 

Commitments and contingencies

    

Equity:

    

Jabil Circuit, Inc. stockholders’ equity:

    

Preferred stock

     —          —     

Common stock

     238        232   

Additional paid-in capital

     1,853,409        1,752,847   

Retained earnings

     1,071,175        766,934   

Accumulated other comprehensive income

     81,248        106,275   

Treasury stock, at cost

     (670,783     (521,231
  

 

 

   

 

 

 

Total Jabil Circuit, Inc. stockholders’ equity

     2,335,287        2,105,057   
  

 

 

   

 

 

 

Noncontrolling interests

     20,280        2,278   
  

 

 

   

 

 

 

Total equity

     2,355,567        2,107,335   
  

 

 

   

 

 

 

Total liabilities and equity

   $ 9,153,781      $ 7,803,141   
  

 

 

   

 

 

 


JABIL CIRCUIT, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except for per share data)

(Unaudited)

 

     Three months ended     Twelve months ended  
     August 31,
2013
    August 31,
2012
    August 31,
2013
    August 31,
2012
 

Net revenue

   $ 4,814,858      $ 4,338,080      $ 18,336,894      $ 17,151,941   

Cost of revenue

     4,462,613        4,020,532        16,977,032        15,842,896   
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     352,245        317,548        1,359,862        1,309,045   

Operating expenses:

        

Selling, general and administrative

     189,979        163,070        688,752        644,452   

Research and development

     7,075        6,784        28,468        25,837   

Amortization of intangibles

     5,760        3,426        16,154        16,825   

Restructuring and related charges

     61,061        —          89,453        —     

Impairment of notes receivable and related charges

     —          —          25,597        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     88,370        144,268        511,438        621,931   

Interest and other, net

     32,547        29,804        125,374        113,031   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income tax

     55,823        114,464        386,064        508,900   

Income tax (benefit) expense

     (70,967     31,999        15,973        112,811   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     126,790        82,465        370,091        396,089   

Net (loss) income attributable to noncontrolling interests, net of income tax expense

     (229     (332     (1,391     1,402   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Jabil Circuit, Inc.

   $ 127,019      $ 82,797      $ 371,482      $ 394,687   
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per share attributable to the stockholders of Jabil Circuit, Inc.:

        

Basic

   $ 0.63      $ 0.40      $ 1.83      $ 1.91   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

   $ 0.61      $ 0.39      $ 1.79      $ 1.87   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding:

        

Basic

     202,959        205,666        203,096        206,160   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

     208,502        210,847        207,815        211,181   
  

 

 

   

 

 

   

 

 

   

 

 

 


JABIL CIRCUIT, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(Unaudited)

 

     Twelve months ended  
     August 31,
2013
    August 31,
2012
 

Cash flows from operating activities:

    

Net income

   $ 370,091      $ 396,089   

Adjustments to reconcile net income to net cash provided by operating activities:

    

Depreciation and amortization

     418,117        353,492   

Recognition of stock-based compensation expense

     68,383        81,405   

Deferred income taxes

     (123,165     (9,201

Impairment of notes receivable and related charges

     25,597        —     

Excess tax benefit related to stock awards

     (14,605     (885

Other, net

     12,616        25,563   

Changes in operating assets and liabilities, exclusive of net assets acquired:

    

Accounts receivable

     750        (22,626

Inventories

     50,229        (53,268

Prepaid expenses and other current assets

     (82,756     (141,526

Other assets

     (5,025     (2,745

Accounts payable and accrued expenses

     485,972        21,955   

Income taxes payable

     7,685        (14,027
  

 

 

   

 

 

 

Net cash provided by operating activities

     1,213,889        634,226   
  

 

 

   

 

 

 

Cash flows from investing activities:

    

Acquisition of property, plant and equipment

     (736,858     (497,697

Cash paid for business and intangible asset acquisitions, net of cash acquired

     (650,054     (125,098

Proceeds from sale of property, plant and equipment

     15,792        16,408   

Cost of receivables acquired, net of cash collections

     —          517   

Investments in non-marketable equity securities

     (3,342     —     
  

 

 

   

 

 

 

Net cash used in investing activities

     (1,374,462     (605,870
  

 

 

   

 

 

 

Cash flows from financing activities:

    

Borrowings under debt agreements

     5,764,400        9,233,414   

Payments towards debt agreements

     (5,586,738     (8,748,420

Payments to acquire treasury stock

     (129,262     (70,991

Dividends paid to stockholders

     (67,181     (65,240

Dividends paid to noncontrolling interest

     —          (333

Net proceeds from exercise of stock options and issuance of common stock under employee stock purchase plan

     18,285        26,003   

Debt issuance costs

     —          (6,254

Treasury stock minimum tax withholding related to vesting of restricted stock

     (20,290     (31,205

Cash paid to purchase noncontrolling interest

     (17,500     (20,501

Excess tax benefit related to stock awards

     14,605        885   

Capital contribution to noncontrolling interest

     316        —     

Bank overdraft

     372        —     
  

 

 

   

 

 

 

Net cash (used in) provided by financing activities

     (22,993     317,358   
  

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

     (22,317     (17,069
  

 

 

   

 

 

 

Net (decrease) increase in cash and cash equivalents

     (205,883     328,645   

Cash and cash equivalents at beginning of period

     1,217,256        888,611   
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 1,011,373      $ 1,217,256   
  

 

 

   

 

 

 


JABIL CIRCUIT, INC. AND SUBSIDIARIES

SUPPLEMENTAL DATA

RECONCILIATION OF GAAP FINANCIAL RESULTS TO NON-GAAP MEASURES

(in thousands, except for per share data)

(Unaudited)

 

     Three months ended      Twelve months ended  
     August 31,
2013
    August 31,
2012
     August 31,
2013
    August 31,
2012
 

Operating income (GAAP)

   $ 88,370      $ 144,268       $ 511,438      $ 621,931   

Amortization of intangibles

     5,760        3,426         16,154        16,825   

Distressed customer charge

     —          5,865         —          16,014   

Stock-based compensation and related charges

     16,182        21,552         68,383        81,409   

Restructuring and related charges

     61,061        —           89,453        —     

Impairment of notes receivable and related charges

     —          —           25,597        —     

Acquisition costs and purchase accounting adjustments

     10,037        —           10,037        —     
  

 

 

   

 

 

    

 

 

   

 

 

 

Core operating income (Non-GAAP)

   $ 181,410      $ 175,111       $ 721,062      $ 736,179   
  

 

 

   

 

 

    

 

 

   

 

 

 

Net income attributable to Jabil Circuit, Inc. (GAAP)

   $ 127,019      $ 82,797       $ 371,482      $ 394,687   

Amortization of intangibles, net of tax

     (15,104     3,327         (5,269     16,425   

Distressed customer charge

     —          5,865         —          16,014   

Stock-based compensation and related charges, net of tax

     16,365        21,329         68,480        79,985   

Restructuring and related charges, net of tax

     59,252        —           85,827        —     

Impairment of notes receivable and related charges, net of tax

     —          —           19,748        —     

Acquisition costs and purchase accounting adjustments, net of tax

     (70,363     —           (70,363     —     
  

 

 

   

 

 

    

 

 

   

 

 

 

Core earnings (Non-GAAP)

   $ 117,169      $ 113,318       $ 469,905      $ 507,111   
  

 

 

   

 

 

    

 

 

   

 

 

 

Earnings per share: (GAAP)

         

Basic

   $ 0.63      $ 0.40       $ 1.83      $ 1.91   
  

 

 

   

 

 

    

 

 

   

 

 

 

Diluted

   $ 0.61      $ 0.39       $ 1.79      $ 1.87   
  

 

 

   

 

 

    

 

 

   

 

 

 

Core earnings per share: (Non-GAAP)

         

Basic

   $ 0.58      $ 0.55       $ 2.31      $ 2.46   
  

 

 

   

 

 

    

 

 

   

 

 

 

Diluted

   $ 0.56      $ 0.54       $ 2.26      $ 2.40   
  

 

 

   

 

 

    

 

 

   

 

 

 

Weighted average shares outstanding used in the calculations of earnings per share (GAAP and Non-GAAP):

         

Basic

     202,959        205,666         203,096        206,160   
  

 

 

   

 

 

    

 

 

   

 

 

 

Diluted

     208,502        210,847         207,815        211,181   
  

 

 

   

 

 

    

 

 

   

 

 

 


JABIL CIRCUIT, INC. AND SUBSIDIARIES

SUPPLEMENTAL DATA

RECONCILIATION OF GAAP FINANCIAL RESULTS TO NON-GAAP MEASURES

(in thousands)

(Unaudited)

CALCULATION OF RETURN ON INVESTED CAPITAL AND

CORE RETURN ON INVESTED CAPITAL

The Company calculates: (1) its “Return on Invested Capital” by annualizing its “after-tax GAAP operating income” for its most recently-ended quarter and dividing that by a two quarter average of its “net invested capital asset base” and (2) its “Core Return on Invested Capital” by annualizing its “after-tax non-GAAP core operating income” for its most recently-ended quarter and dividing that by a two quarter average of its “net invested capital asset base.”

The Company calculates: (1) its “after-tax GAAP operating income” by subtracting a certain tax effect (the calculation of which is explained below) from its GAAP operating income and (2) its “after-tax non-GAAP core operating income” by subtracting a certain tax effect (the calculation of which is explained below) from its non-GAAP core operating income. See elsewhere in this earnings release for a reconciliation of the Company’s non-GAAP core operating income to its GAAP operating income.

The Company calculates “net invested capital asset base” as the sum of the averages (the calculations of which are explained below) of (1) its stockholders’ equity, (2) the non-current portion of its notes payable, long-term debt and capital lease obligations and (3) the current portion of its notes payable, long-term debt and capital lease obligations, less the average (the calculation of which is explained below) of its cash and cash equivalents.

The following table reconciles (1) “Return on Invested Capital,” as calculated using “after-tax GAAP operating income” to (2) “Core Return on Invested Capital,” as calculated using “after-tax non-GAAP core operating income”:

 

     Three months
ended
August 31,
2013
    Twelve months
ended
August 31,
2013
 

Numerator:

    

Operating income (GAAP)

   $ 88,370      $ 511,438   

Tax effect (1)

     72,217        (16,151
  

 

 

   

 

 

 

After-tax operating income

     160,587        495,287   
     x4        x1   
  

 

 

   

 

 

 

Annualized after-tax operating income

   $ 642,348      $ 495,287   
  

 

 

   

 

 

 

Core operating income (Non-GAAP)

   $ 181,410      $ 721,062   

Tax effect (2)

     (32,134     (128,095
  

 

 

   

 

 

 

After-tax core operating income

     149,276        592,967   
     x4        x1   
  

 

 

   

 

 

 

Annualized after-tax core operating income

   $ 597,104      $ 592,967   
  

 

 

   

 

 

 

Denominator:

    

Average total Jabil Circuit, Inc. stockholders’ equity (3)

   $ 2,270,437      $ 2,220,172   

Average notes payable, long-term debt and capital lease obligations, less current installments (3)

     1,670,893        1,674,376   

Average current installments of notes payable, long-term debt and capital lease obligations (3)

     112,498        116,784   

Average cash and cash equivalents (3)

     (1,181,550     (1,114,315
  

 

 

   

 

 

 

Net invested capital asset base

   $ 2,872,278      $ 2,897,017   
  

 

 

   

 

 

 

Return on Invested Capital (GAAP)

     22.4     17.1

Adjustments noted above

     (1.6 )%      3.4

Core Return on Invested Capital (Non-GAAP)

     20.8     20.5

 

(1) This amount is calculated by adding the amount of income taxes attributable to its operating income (GAAP) and its interest expense.
(2) This amount is calculated by adding the amount of income taxes attributable to its core operating income (Non-GAAP) and its interest expense.
(3) The average is based on the addition of the account balance at the end of the most recently-ended quarter to the account balance at the end of the prior quarter for the three months ended August 31, 2013 and dividing by two. The average is based on the addition of the account balance at the end of the most recently-ended fiscal year to the account balance at the end of the prior fiscal year for the twelve months ended August 31, 2013 and dividing by two.