Year ended December 31
(millions of U.S. dollars, unaudited)
2008
2007
Change
Pro forma operating profit
$
1,936
$
1,571
23%
Adjustments:
Amortization
511
524
Purchase accounting difference
86
Disposals
(5)
(11)
Impairment of assets held for sale
72
Fair value adjustments
(103)
48
Integration and synergy costs
362
153
Pension
(34)
Pro forma underlying operating profit1
$
2,773
$
2,337
19%
Pro forma underlying operating profit margin %1
20.7%
18.8%


Year ended December 31
(millions of U.S. dollars except per share data, unaudited)
2008
Pro forma underlying operating profit1
$
2,773
Integration and synergy costs
(362)
Net interest expense2
(434)
Income taxes3
(367)
Tradeweb ownership interests
(17)
Dividends declared on preference shares
(5)
Pro forma adjusted earnings – ongoing businesses4
$
1,588
Pro forma adjusted basic earnings per share – ongoing businesses
$
1.92
Pro forma adjusted diluted earnings per share – ongoing businesses
$
1.91
Pro forma basic weighted average common and ordinary shares5
828.6
Pro forma diluted weighted average common and ordinary shares6
833.0
1
Pro forma underlying operating profit excludes amortization of acquired intangible assets, fair value adjustments, the impairment of assets held for sale, costs associated with integration and synergy programs, and other items affecting comparability. Pro forma underlying operating profit excludes the results of disposals as well as the initial one-time purchase accounting adjustments related to acquired revenue. Pro forma underlying operating profit margin is the pro forma underlying operating profit expressed as a percentage of pro forma ongoing revenues.
2
Pro forma net interest expense represents a pro rata portion of full year pro forma interest expense of $450 million through June 2008 plus actual net interest expense for the six months ended December 31, 2008.
3
Pro forma income taxes are calculated using an effective tax rate of 25%.
4
Pro forma adjusted earnings from ongoing operations and pro forma adjusted earnings per share from ongoing operations include costs associated with the integration and synergy programs, but exclude non-recurring items, discontinued operations, the results of disposals (see note 2 in Pro Forma Division and Business Segment Information) and other items affecting comparability. Pro forma adjusted earnings per share from ongoing operations does not represent actual earnings per share attributable to shareholders.
5
Pro forma basic weighted average common and ordinary shares includes approximately 194.1 million Thomson Reuters PLC shares issued to former Reuters Group PLC shareholders on April 17, 2008 as if the shares were outstanding from January 1, 2008, the beginning of the period presented.
6
Pro forma diluted weighted average common and ordinary shares includes the effect of Reuters Group PLC options and other awards assumed in the acquisition from January 1, 2008, the beginning of the period presented.
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