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 Consolidated Financial Statements (in the Form 10-K or 10-Q) unless otherwise stated.
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Term
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Definition
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*Adjusted Earnings
(Adjusted after-tax earnings from continuing operations, attributable to FMC Stockholders)
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Net income (loss) attributable to FMC stockholders plus the sum of Discontinued operations attributable to FMC Stockholders, net of income taxes and the after-tax effect of Corporate special charges (income) and Non-GAAP Tax adjustments. |
| Corporate special charges (income) |
Corporate special charges (income) represents the sum of Restructuring and other charges (income), Non-operating pension and postretirement charges (income), and certain Transaction-related charges. |
| Corporate expenses |
Corporate staff costs which are not allocated to the business segments. |
| *Adjusted operating profit (Adjusted earnings from continuing operations, before interest, income taxes and noncontrolling interests) |
Income (loss) from continuing operations before income taxes, plus the sum of Corporate special (charges) income and Interest expense, net. |
| *Adjusted Tax Rate |
Calculated by dividing the Adjusted Earnings Provision for income taxes by the Adjusted Earnings from Continuing Operations, before income taxes and noncontrolling interests. |
| *Non-GAAP tax adjustments |
Represents certain discrete tax items including, but are not limited to: income tax expenses or benefits that are not related to ongoing business operations in the current year; tax adjustments associated with fluctuations in foreign currency remeasurement of certain foreign operations; certain changes in estimates of tax matters related to prior fiscal years; certain changes in the realizability of deferred tax assets and related interim accounting impacts; and changes in tax law. |
| *Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (*Adjusted EBITDA) |
Adjusted operating profit (defined above) plus Total Depreciation and Amortization. |
| *Free Cash Flow |
Calculated as Adjusted Cash from Operations less Transaction and integration costs less Capital Expenditures less Legacy liabilities from discontinued operations. |
| Cash provided by operating activities or reported cash from operations (Cash from Operations) |
As presented on the Consolidated Statements of Cash Flows in either Form 10-Q or Form 10-K |
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*Adjusted cash from operations
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Defined as Cash provided by operating activities excluding the effects of transaction-related cash flows. |
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*Net debt
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The sum of Short-term debt, Current portion of long-term debt and Long-term debt less the sum of Cash and cash equivalents. |
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*Operating working capital
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Total Current Assets less Cash and cash equivalents less the sum of Total Current Liabilities less Short-term debt and Current portion of long-term debt. |
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*ROIC
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Return on Invested Capital (ROIC) is the sum of Income (loss) from continuing operations attributable to FMC stockholders, net of tax plus the sum of After-tax Interest expense, the after-tax effect of Corporate special (charges) income and Non-GAAP tax adjustments divided by the sum of the 2-Point Average of Short-term debt, Current portion of long-term debt, Long-term debt and Total FMC stockholders' equity. |
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*After-tax Interest Expense
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Defined as the difference between interest income and interest expense, multiplied by the Adjusted Tax Rate. |
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Capital Additions
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Represents additions to property, plant and equipment as well as investments in our Agricultural Solutions’ contract manufacturers. |
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*Cash Flow provided (required) Working Capital
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Sum of Cash provided (required) by the following items: Trade receivables, net, Guarantees of vendor financing, Inventories, Accounts Payable, Advance payments from customers and accrued customer rebates. |
