Following is a glossary of financial terms which management will often reference
when evaluating historical financial performance or providing forward-looking
statements. These financial terms are defined in relation to financial statement
items prepared in FMC’s Condensed Consolidated Financial Statements (in
the Form 10-Q) unless otherwise stated.
|
Term
|
Definition
|
|
Adjusted operating profit
|
Income (loss) from continuing operations before
income taxes and cumulative effect of change in accounting principle plus the sum of Asset impairments and Restructuring and other charges and Interest
expense, net and Affiliate interest expense.
|
|
Corporate expense
|
Corporate staff costs which generally cannot be allocated
to the business segments. |
|
Earnings before restructing and other income and charges
|
Net income (loss) less the sum
of Discontinued operations, net of income taxes and the
after-tax effect of Asset impairments,
Restructuring
and other charges, Write-off of deferred financing fees and Tax Adjustments.
|
|
EBITDA
|
Adjusted operating profit (defined above) plus Total Depreciation and Amortization (as presented in the Notes
to the Financial Statements in the Form 10-K, see “Business Segments
and Geographic Data”). |
|
Free cash flow or Free cash flow available for debt
reduction
|
The sum of Cash provided (required)
by operating activities and Cash required by discontinued
operations less Cash required by investing activities.
|
|
Net debt
|
The sum of Short-term debt and Current
portion of long-term debt and Long-term debt less
the sum of Cash and cash equivalents and Restricted
cash.
|
|
Operating working capital
|
Total Current Assets less Cash and cash equivalents and Restricted cash less the sum of Total Current Liabilities less Short-term debt and Current portion of long-term debt.
|
|
Other income and expense, net
|
All other corporate items, including LIFO inventory adjustments
and pension income and expense. |
|
ROIC
|
Return on Invested Capital (ROIC) is the sum of Earnings from continuing operations before restructuring and other charges (gains)
and
After-tax Interest expense
divided by the sum of
the 2-Point Average of Short-term debt, Current portion of long-term debt, Long-term debt and Total shareholder's equity
and
Total shareholder's equity.
|
|
Segment operating profit
|
Adjusted operating profit (defined above) plus
the sum of Corporate expense and Other income
and expense, net.
|
