Page 21 - 2017 AMETEK Annual Report (Interactive) Updated mobile

(See tables on page 25 for a reconciliation of U.S. GAAP At December 31, 2017, $368.7 million was available under
measures to comparable non-GAAP measures). the Company’s Board of Directors authorization for future
share repurchases.
Cash used for investing activities totaled $625.8 million in
2017, compared with $452.4 million in 2016. In 2017, the Additional financing activities for 2017 included cash
Company paid $556.6 million, net of cash acquired, to dividends paid of $82.7 million, compared with $83.3 million
acquire Arizona Instrument in December 2017, MOCON in 2016. Proceeds from the exercise of employee stock
in June 2017 and Rauland in February 2017. In 2016, the options were $40.0 million in 2017, compared with
Company paid $391.4 million, net of cash acquired, to $17.6 million in 2016.
acquire Laserage in October 2016, HS Foils and Nu As a result of all of the Company’s cash flow activities in
Instruments in July 2016, and Brookfield and ESP/SurgeX in 2017, cash and cash equivalents at December 31, 2017
January 2016. Additions to property, plant and equipment totaled $646.3 million, compared with $717.3 million at
totaled $75.1 million in 2017, compared with $63.3 million in December 31, 2016. At December 31, 2017, the Company
2016.
had $569.4 million in cash outside the United States,
Cash used for financing activities totaled $329.2 million compared with $481.6 million at December 31, 2016.
in 2017, compared with $57.1 million of cash provided by The Company utilizes this cash to fund its international
financing activities in 2016. At December 31, 2017, total debt, operations, as well as to acquire international businesses.
net was $2,174.3 million, compared with $2,341.6 million The Company is in compliance with all covenants, including
at December 31, 2016. In 2017, short-term borrowings financial covenants, for all of its debt agreements. The
decreased $9.6 million, compared with a decrease of Company believes it has sufficient cash-generating
$315.7 million in 2016. In 2017, long-term borrowings capabilities from domestic and unrestricted foreign
decreased $270.0 million, compared with an increase of sources, available credit facilities and access to long-term
$772.2 million in 2016. In the fourth quarter of 2017, the capital funds to enable it to meet its operating needs and
Company paid in full, at maturity, $270 million in aggregate contractual obligations in the foreseeable future.
principal amount of 6.20% private placement senior notes.
Subsequent Events
The Company along with certain of its foreign subsidiaries
has an amended and restated credit agreement dated as In January 2018, the Company acquired FMH Aerospace for
of March 10, 2016 (the “Credit Agreement”). The Credit approximately $235 million in cash using available cash.
Agreement consists of a five-year revolving credit facility in Effective February 1, 2018, the Company’s Board of
an aggregate principal amount of $850 million with a final Directors approved a 56% increase in the quarterly cash
maturity date in March 2021. The revolving credit facility dividend on the Company’s common stock to $0.14 per
total borrowing capacity excludes an accordion feature common share from $0.09 per common share.
that permits the Company to request up to an additional
$300 million in revolving credit commitments at any time Forward-Looking Information and Risk Factors
during the life of the Credit Agreement under certain Except for historical information contained in this summary
conditions. Interest rates on outstanding borrowings under annual report, certain statements made herein, which state
the revolving credit facility are at the applicable benchmark the Company’s prediction for the future, are forward-looking
rate plus a negotiated spread or at the U.S. prime rate. The statements, which involve risks and uncertainties that exist
revolving credit facility provides the Company with additional in the Company’s operations and business environment and
financial flexibility to support its growth plans, including its are subject to change based on various important factors.
acquisition strategy. At December 31, 2017, the Company Actual results may differ materially from those expressed in
had available borrowing capacity of $1,108.1 million under its any forward-looking statement made by, or on behalf of, the
revolving credit facility, including the $300 million accordion Company. Additional information concerning risk and other
feature. factors that could have a material adverse effect on our
In the third quarter of 2018, $80 million of 6.35% senior business, or cause actual results to differ from projections,
notes and $160 million of 7.08% senior notes will mature and is contained in the Company’s Form 10-K for the year
become payable. In the fourth quarter of 2018, $65 million ended December 31, 2017, filed with the U.S. Securities and
of 7.18% senior notes will mature and become payable. Exchange Commission.
The debt-to-capital ratio was 35.1% at December 31, 2017,
compared with 41.8% at December 31, 2016. The net
debt-to-capital ratio (total debt, net less cash and cash
equivalents divided by the sum of net debt and stockholders’
equity) was 27.5% at December 31, 2017, compared with
33.3% at December 31, 2016. The net debt-to-capital ratio is
presented because the Company is aware that this measure
is used by third parties in evaluating the Company. (See
table on page 25 for a reconciliation of U.S. GAAP measures
to comparable non-GAAP measures).
In 2017, the Company repurchased approximately
114,000 shares of its common stock for $6.9 million,
compared with $336.1 million used for repurchases of
approximately 7,099,000 shares in 2016.

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