- Building Value
- Financial Results
- Non-IFRS Basis Performance Measures
- Cash Flow
- Revenue Profile
- Division and Business Segment Revenue
- Division and Business Segment Adjusted EBITDA
- Division and Business Segment Underlying Operating Profit
- Markets Division Revenue Profile
- Professional Division Revenue Profile
- Consolidated Income Statement
- Consolidated Statement of Financial Position
- Consolidated Statement of Cash Flow
- Dividend History
- Reconciliations
- Reconciliation of Operating (Loss) Profit to Underlying Operating Profit and Adjusted EBITDA
- Reconciliation of (Loss) Earnings from Continuing Operations to Adjusted EBITDA
- Reconciliation of Underlying Operating Profit to Adjusted EBITDA by Division and Business Segment
- Reconciliation of (Loss) Earnings Attributable to Common Shareholders to Adjusted Earnings from Continuing Operations
- Other Businesses
- Reconciliation of Net Cash Provided by Operating Activities to Underlying Free Cash Flow
- Reconciliation of Free Cash Flow to Free Cash Flow from Ongoing Operations
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RECONCILIATION OF OPERATING (LOSS) PROFIT TO UNDERLYING OPERATING PROFIT (1) AND ADJUSTED EBITDA (2)
In Millions of U.S. Dollars (Unaudited)CloseFootnotes
1Underlying operating profit is operating profit from reportable segments and corporate expenses. Underlying operating profit margin is the underlying operating profit expressed as a percentage of revenues from ongoing businesses.
2Thomson Reuters defines adjusted EBITDA as underlying operating profit excluding the related depreciation and amortization of computer software but including integration programs expense. Adjusted EBITDA margin is adjusted EBITDA expressed as a percentage of revenues from ongoing businesses.
3Other businesses are businesses that have been or are expected to be exited through sale or closure that did not qualify for discontinued operations classification. Other businesses do not qualify as a component of the company’s four reportable segments, nor as a separate reportable segment. Other businesses include the Healthcare business, for which the divestiture process has been suspended until market conditions improve.
Twelve Months ended December 31, 2011 2010 Operating (Loss) Profit $ (705) $ 1,419 Adjustments: Goodwill Impairment 3,010 - Amortization of Other Identifiable Intangible Assets 612 545 Integration Programs Expenses 215 463 Fair Value Adjustments (149) 117 Other Operating (Gains) Losses, Net (204) 16 Operating Profit from Other Businesses (3) (200) (204) Underlying Operating Profit $ 2,579 $ 2,356 Adjustments: Integration Programs Expenses (215) (463) Depreciation and Amortization of Computer Software
(Excluding Other Businesses (3))1,048 959 Adjusted EBITDA $ 3,412 $ 2,852 Underlying Operating Profit Margin 20.0% 19.5% Adjusted EBITDA Margin 26.4% 23.6% CloseDisclaimer
Summary Financial Information
- This document includes summary financial information and should not be considered a substitute for our full financial statements, including footnotes, management/auditors’ reports, and related management’s discussion and analysis (MD&A). You can access our 2011 audited financial statements, MD&A and other annual disclosures in the “Investor Relations” section of our website, www.thomsonreuters.com, as well as in our filings with the Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission.
Non-IFRS Financial Measures
- We also use certain non-IFRS financial measures, such as Adjusted EBITDA, underlying operating profit and the related margins and adjusted EPS. These measures exclude our $3.0 billion goodwill impairment charge incurred in the fourth quarter of 2011. Non-IFRS financial measures are defined and reconciled to the most directly comparable IFRS measures in this annual report and our 2011 annual MD&A. We use these non-IFRS financial measures as supplemental indicators of our operating performance and financial position. These measures do not have any standardized meaning prescribed by IFRS and therefore are unlikely to be comparable to the calculation of similar measures used by other companies, and should not be viewed as alternatives to measures of financial performance calculated in accordance with IFRS.
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RECONCILIATION OF (LOSS) EARNINGS FROM CONTINUING OPERATIONS TO ADJUSTED EBITDA (1)
In Millions of U.S. Dollars (Unaudited)CloseFootnotes
1Thomson Reuters defines adjusted EBITDA as underlying operating profit excluding the related depreciation and amortization of computer software but including integration programs expense. Adjusted EBITDA margin is adjusted EBITDA expressed as a percentage of revenues from ongoing businesses.
2Other businesses are businesses that have been or are expected to be exited through sale or closure that did not qualify for discontinued operations classification. Other businesses do not qualify as a component of the company’s four reportable segments, nor as a separate reportable segment. Other businesses include the Healthcare business, for which the divestiture process has been suspended until market conditions improve.
Twelve Months ended December 31, 2011 2010 (Loss) Earnings from Continuing Operations $ (1,396) $ 933 Adjustments: Tax Expense 293 139 Other Finance Costs (Income) 15 (28) Net Interest Expense 396 383 Amortization of Other Identifiable Intangible Assets 612 545 Amortization of Computer Software 659 572 Depreciation 438 457 EBITDA $ 1,017 $ 3,001 Adjustments: Share of Post Tax Earnings in Equity Method Investees (13) (8) Other Operating (Gains) Losses, Net (204) 16 Goodwill Impairment 3,010 – Fair Value Adjustments (149) 117 EBITDA from Other Businesses (2) (249) (274) Adjusted EBITDA $ 3,412 $ 2,852 Adjusted EBITDA Margin 26.4% 23.6% CloseDisclaimer
Summary Financial Information
- This document includes summary financial information and should not be considered a substitute for our full financial statements, including footnotes, management/auditors’ reports, and related management’s discussion and analysis (MD&A). You can access our 2011 audited financial statements, MD&A and other annual disclosures in the “Investor Relations” section of our website, www.thomsonreuters.com, as well as in our filings with the Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission.
Non-IFRS Financial Measures
- We also use certain non-IFRS financial measures, such as Adjusted EBITDA, underlying operating profit and the related margins and adjusted EPS. These measures exclude our $3.0 billion goodwill impairment charge incurred in the fourth quarter of 2011. Non-IFRS financial measures are defined and reconciled to the most directly comparable IFRS measures in this annual report and our 2011 annual MD&A. We use these non-IFRS financial measures as supplemental indicators of our operating performance and financial position. These measures do not have any standardized meaning prescribed by IFRS and therefore are unlikely to be comparable to the calculation of similar measures used by other companies, and should not be viewed as alternatives to measures of financial performance calculated in accordance with IFRS.
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RECONCILIATION OF UNDERLYING OPERATING PROFIT TO ADJUSTED EBITDA (3)
In Millions of U.S. Dollars (Unaudited)
BY DIVISION AND BUSINESS SEGMENTCloseFootnotes
1Thomson Reuters reorganized its reportable segments in the second quarter of 2011. Prior-period amounts have been reclassified to reflect the current presentation.
2Other businesses are businesses that have been or are expected to be exited through sale or closure that did not qualify for discontinued operations classification. Other businesses do not qualify as a component of the company’s four reportable segments, nor as a separate reportable segment. Other businesses include the Healthcare business, for which the divestiture process has been suspended until market conditions improve.
3Thomson Reuters defines adjusted EBITDA as underlying operating profit excluding the related depreciation and amortization of computer software but including integration programs expense.
Twelve Months ended December 31, 2011 Twelve Months ended December 31, 2010 Underlying Operating Profit Add: Depreciation and Amortization of Computer Software* Adjusted EBITDA Underlying Operating Profit Add: Depreciation and Amortization of Computer Software* Adjusted EBITDA Legal (1) $943 $ 290 $ 1,233 $ 892 $ 269 $ 1,161 Tax & Accounting (1) 261 98 359 223 84 307 Intellectual Property & Science (1) 237 59 296 209 54 263 Professional Division 1,441 447 1,888 1,324 407 1,731 Markets Division 1,411 581 1,992 1,281 527 1,808 Corporate Expenses (273) 20 (253) (249) 25 (224) Integration Programs Expenses na na (215) na na (463) $ 2,579 $ 1,048 $ 3,412 $ 2,356 $ 959 $ 2,852 *Excludes Other Businesses (2)
na = Not ApplicableCloseDisclaimer
Summary Financial Information
- This document includes summary financial information and should not be considered a substitute for our full financial statements, including footnotes, management/auditors’ reports, and related management’s discussion and analysis (MD&A). You can access our 2011 audited financial statements, MD&A and other annual disclosures in the “Investor Relations” section of our website, www.thomsonreuters.com, as well as in our filings with the Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission.
Non-IFRS Financial Measures
- We also use certain non-IFRS financial measures, such as Adjusted EBITDA, underlying operating profit and the related margins and adjusted EPS. These measures exclude our $3.0 billion goodwill impairment charge incurred in the fourth quarter of 2011. Non-IFRS financial measures are defined and reconciled to the most directly comparable IFRS measures in this annual report and our 2011 annual MD&A. We use these non-IFRS financial measures as supplemental indicators of our operating performance and financial position. These measures do not have any standardized meaning prescribed by IFRS and therefore are unlikely to be comparable to the calculation of similar measures used by other companies, and should not be viewed as alternatives to measures of financial performance calculated in accordance with IFRS.
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RECONCILIATION OF (LOSS) EARNINGS ATTRIBUTABLE TO COMMON SHAREHOLDERS
In Millions of U.S. Dollars, except as otherwise indicated and except
TO ADJUSTED EARNINGS FROM CONTINUING OPERATIONS (1)
for per share data (Unaudited)CloseFootnotes
1Adjusted earnings from continuing operations and adjusted earnings per share from continuing operations include dividends declared on preference shares and integration programs expense, but exclude the pre-tax impacts of amortization of other identifiable intangible assets as well as the post-tax impacts of fair value adjustments, other operating (gains) and losses, certain impairment charges, the results of Other businesses (see note (2) below), other finance (income) costs, Thomson Reuters share of post-tax (earnings) losses in equity method investees, discontinued operations and other items affecting comparability. Adjusted earnings per share from continuing operations is calculated using diluted weighted average shares and does not represent actual earnings or loss per share attributable to shareholders.
Because Thomson Reuters reported a “net loss from continuing operations” under IFRS for the full year 2011, the weighted average common shares used to compute diluted EPS are the same as basic EPS, with no adjustment for potential common shares that would reduce the loss per share and therefore be anti-dilutive. Since adjusted earnings from continuing operations is a profit, as it excludes the $3.0 billion goodwill impairment charge, potential common shares are included, as they lower adjusted EPS and are therefore dilutive.
The following table reconciles IFRS and non-IFRS common share information:
(Weighted average common shares) Twelve Months ended December 31, IFRS: Basic and Diluted 833,459,452 Effect of Stock Options and Other
Equity Incentive Awards2,297,510 Non-IFRS 835,756,962 2Other businesses are businesses that have been or are expected to be exited through sale or closure that did not qualify for discontinued operations classification. Other businesses do not qualify as a component of the company’s four reportable segments, nor as a separate reportable segment. Other businesses include the Healthcare business, for which the divestiture process has been suspended until market conditions improve.
Twelve Months ended December 31, 2011 2010 (Loss) Earnings Attributable to Common Shareholders $ (1,390) $ 909 Adjustments: Goodwill Impairment 3,010 - Goodwill Impairment Attributable to Non-Controlling Interests (40) - Operating Profit from Other Businesses (2) (200) (204) Fair Value Adjustments (149) 117 Other Operating (Gains) Losses, Net (204) 16 Other Finance Costs (Income) 15 (28) Share of Post Tax Earnings in Equity Method Investees (13) (8) Tax on Above Items 129 9 Discrete Tax Items (105) (47) Amortization of Other Identifiable Intangible Assets 612 545 Discontinued Operations (4) - Dividends Declared on Preference Shares (3) (3) Adjusted Earnings from Continuing Operations $ 1,658 $ 1,306 Adjusted Earnings per Share from Continuing Operations $ 1.98 $ 1.56 Diluted Weighted Average Common Shares (In Millions) (1) 835.8 836.4 CloseDisclaimer
Summary Financial Information
- This document includes summary financial information and should not be considered a substitute for our full financial statements, including footnotes, management/auditors’ reports, and related management’s discussion and analysis (MD&A). You can access our 2011 audited financial statements, MD&A and other annual disclosures in the “Investor Relations” section of our website, www.thomsonreuters.com, as well as in our filings with the Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission.
Non-IFRS Financial Measures
- We also use certain non-IFRS financial measures, such as Adjusted EBITDA, underlying operating profit and the related margins and adjusted EPS. These measures exclude our $3.0 billion goodwill impairment charge incurred in the fourth quarter of 2011. Non-IFRS financial measures are defined and reconciled to the most directly comparable IFRS measures in this annual report and our 2011 annual MD&A. We use these non-IFRS financial measures as supplemental indicators of our operating performance and financial position. These measures do not have any standardized meaning prescribed by IFRS and therefore are unlikely to be comparable to the calculation of similar measures used by other companies, and should not be viewed as alternatives to measures of financial performance calculated in accordance with IFRS.
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OTHER BUSINESSES (1)
In Millions of U.S. Dollars (Unaudited)CloseFootnotes
1Other businesses are businesses that have been or are expected to be exited through sale or closure that did not qualify for discontinued operations classification. Other businesses do not qualify as a component of the company’s four reportable segments, nor as a separate reportable segment. Other businesses include the Healthcare business, for which the divestiture process has been suspended until market conditions improve.
Twelve Months ended December 31, 2011 2010 Revenues $ 891 $ 962 Operating Profit 200 204 Depreciation and Amortization of Computer Software 49 70 EBITDA $ 249 $ 274 CloseDisclaimer
Summary Financial Information
- This document includes summary financial information and should not be considered a substitute for our full financial statements, including footnotes, management/auditors’ reports, and related management’s discussion and analysis (MD&A). You can access our 2011 audited financial statements, MD&A and other annual disclosures in the “Investor Relations” section of our website, www.thomsonreuters.com, as well as in our filings with the Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission.
Non-IFRS Financial Measures
- We also use certain non-IFRS financial measures, such as Adjusted EBITDA, underlying operating profit and the related margins and adjusted EPS. These measures exclude our $3.0 billion goodwill impairment charge incurred in the fourth quarter of 2011. Non-IFRS financial measures are defined and reconciled to the most directly comparable IFRS measures in this annual report and our 2011 annual MD&A. We use these non-IFRS financial measures as supplemental indicators of our operating performance and financial position. These measures do not have any standardized meaning prescribed by IFRS and therefore are unlikely to be comparable to the calculation of similar measures used by other companies, and should not be viewed as alternatives to measures of financial performance calculated in accordance with IFRS.
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RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO UNDERLYING FREE CASH FLOW (1)(2)
In Millions of U.S. Dollars (Unaudited)CloseFootnotes
1Underlying free cash flow is free cash flow excluding one-time cash costs associated with integration programs.
2Free cash flow is net cash provided by operating activities less capital expenditures, other investing activities and dividends paid on the company’s preference shares. Thomson Reuters uses free cash flow as a performance measure because it represents cash available to repay debt, pay dividends and fund share repurchases and new acquisitions.
Twelve Months ended December 31, 2011 2010 Net Cash Provided by Operating Activities $ 2,597 $ 2,672 Capital Expenditures, Less Proceeds from Disposals (1,041) (1,114) Other Investing Activities 49 8 Dividends Paid on Preference Shares (3) (3) Free Cash Flow (2) 1,602 1,563 Integration Programs Costs 286 450 Underlying Free Cash Flow (1) $ 1,888 $ 2,013 CloseDisclaimer
Summary Financial Information
- This document includes summary financial information and should not be considered a substitute for our full financial statements, including footnotes, management/auditors’ reports, and related management’s discussion and analysis (MD&A). You can access our 2011 audited financial statements, MD&A and other annual disclosures in the “Investor Relations” section of our website, www.thomsonreuters.com, as well as in our filings with the Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission.
Non-IFRS Financial Measures
- We also use certain non-IFRS financial measures, such as Adjusted EBITDA, underlying operating profit and the related margins and adjusted EPS. These measures exclude our $3.0 billion goodwill impairment charge incurred in the fourth quarter of 2011. Non-IFRS financial measures are defined and reconciled to the most directly comparable IFRS measures in this annual report and our 2011 annual MD&A. We use these non-IFRS financial measures as supplemental indicators of our operating performance and financial position. These measures do not have any standardized meaning prescribed by IFRS and therefore are unlikely to be comparable to the calculation of similar measures used by other companies, and should not be viewed as alternatives to measures of financial performance calculated in accordance with IFRS.
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RECONCILIATION OF FREE CASH FLOW TO FREE CASH FLOW FROM ONGOING OPERATIONS (1)
In Millions of U.S. Dollars (Unaudited)CloseFootnotes
1Thomson Reuters uses free cash flow from ongoing operations as a supplemental non-IFRS financial measure of its ability to create shareholder value because it represents free cash flow generated by its operations, excluding businesses that have been or are expected to be exited through sale or closure.
Twelve Months ended December 31, 2011 2010 Free Cash Flow $ 1,602 $ 1,563 Other Businesses (215) (270) Free Cash Flow from Ongoing Operations $ 1,387 $ 1,293 CloseDisclaimer
Summary Financial Information
- This document includes summary financial information and should not be considered a substitute for our full financial statements, including footnotes, management/auditors’ reports, and related management’s discussion and analysis (MD&A). You can access our 2011 audited financial statements, MD&A and other annual disclosures in the “Investor Relations” section of our website, www.thomsonreuters.com, as well as in our filings with the Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission.
Non-IFRS Financial Measures
- We also use certain non-IFRS financial measures, such as Adjusted EBITDA, underlying operating profit and the related margins and adjusted EPS. These measures exclude our $3.0 billion goodwill impairment charge incurred in the fourth quarter of 2011. Non-IFRS financial measures are defined and reconciled to the most directly comparable IFRS measures in this annual report and our 2011 annual MD&A. We use these non-IFRS financial measures as supplemental indicators of our operating performance and financial position. These measures do not have any standardized meaning prescribed by IFRS and therefore are unlikely to be comparable to the calculation of similar measures used by other companies, and should not be viewed as alternatives to measures of financial performance calculated in accordance with IFRS.
