NYSE Euronext

CIK:0001368007|SEC Filings

Earnings and Dividend Per Share

9 Months Ended

Sep. 30, 2013

Note 5—Earnings and Dividend Per Share

The following is a reconciliation of the basic and diluted earnings per share computations (in millions, except per share data):



	Three months ended September 30,						Nine months ended September 30,
	2013			2012			2013			2012
Net income	$	182		$	112		$	491		$	334
Net (income) loss attributable to noncontrolling interest	(4		)	(4		)	(14		)	(14		)
Net income attributable to NYSE Euronext	$	178		$	108		$	477		$	320

Shares of common stock and common stock equivalents: Weighted average shares used in basic computation	243			246			243			252
Dilutive effect of: Employee stock options and restricted stock units	2			1			2			1
Weighted average shares used in diluted computation	245			247			245			253

Basic earnings per share attributable to NYSE Euronext	$	0.73		$	0.44		$	1.96		$	1.27
Diluted earnings per share attributable to NYSE Euronext	$	0.73		$	0.44		$	1.95		$	1.26
Dividends per common share	$	0.30		$	0.30		$	0.90		$	0.90

As of September 30, 2013 and 2012, 4.2 million and 4.7 million restricted stock units, respectively, and options to purchase zero and 0.2 million shares of common stock, respectively, were outstanding. For the three and nine months ended September 30, 2013, there were zero and 0.2 million awards, respectively, excluded from the diluted earnings per share computation because their effect would have been anti-dilutive. For the three and nine months ended September 30, 2012, there were 0.3 million and 1.0 million awards, respectively, excluded from the diluted earnings per share computation because their effect would have been anti-dilutive.

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) In Millions, unless otherwise specified	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Cash flows from operating activities:
Net income	$ 491	$ 334
Adjustment to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	195	196
Deferred income taxes	(74)	38
Deferred revenue amortization	(75)	(71)
Stock-based compensation	47	37
Other non-cash items	(17)	11
Change in operating assets and liabilities:
Accounts receivable, net	5	15
Other assets	(20)	47
Accounts payable, accrued expenses, and Section 31 fees payable	(96)	(349)
Deferred revenue	165	158
Accrued employee benefits	(56)	(59)
Net cash provided by operating activities	565	357
Cash flows from investing activities:
Sales of short term financial investments	522	583
Purchases of short term financial investments	(511)	(578)
Purchases of equity investments and businesses, net of cash acquired	(82)	(120)
Purchases of property and equipment	(96)	(125)
Other investing activities	(1)	25
Net cash used in investing activities	(12)	(215)
Cash flows from financing activities:
Commercial paper borrowings (repayments), net	184	423
Repayments of Long-term Debt	(414)
Dividends to shareholders	(219)	(226)
Purchases of treasury stock	2	(424)
Employee stock transactions and other	(29)	(20)
Net cash used in financing activities	(476)	(247)
Effects of exchange rate changes on cash and cash equivalents	(10)	19
Net (decrease) increase in cash and cash equivalents for the period	67	(86)
Cash and cash equivalents at beginning of period	337	396
Cash and cash equivalents at end of period	$ 404	$ 310

Condensed Consolidated Statements of Financial Condition (Unaudited) (USD $) In Millions, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Current assets:
Cash and cash equivalents	$ 404	$ 337
Financial investments	33	43
Accounts receivable, net	399	405
Deferred income taxes	65	67
Other current assets	111	156
Total current assets	1,012	1,008
Property and equipment, net	893	948
Goodwill	4,191	4,163
Other intangible assets, net	5,803	5,783
Deferred income taxes	67	74
Other assets	432	580
Total assets	12,398	12,556
Current liabilities:
Accounts payable and accrued expenses	618	725
Section 31 fees payable	21	99
Deferred revenue	225	138
Short term debt	213	454
Total current liabilities	1,077	1,416
Long term debt	2,088	2,055
Deferred income taxes	1,362	1,435
Accrued employee benefits	560	602
Deferred revenue	384	378
Other liabilities	22	27
Total liabilities	5,493	5,913
Commitments and contingencies
Redeemable noncontrolling interest	273	274
NYSE Euronext stockholders' equity:
Common stock, 0.01 par value, 800 shares authorized; 278 and 277 shares issued; 244 and 258 shares outstanding	3	3
Common stock held in treasury, at cost; 30 and 19 shares	(966)	(968)
Additional paid-in capital	7,934	7,939
Retained earnings	827	569
Accumulated other comprehensive loss	(1,187)	(1,198)
Total NYSE Euronext stockholders' equity	6,611	6,345
Noncontrolling interest	21	24
Total equity	6,632	6,369
Total liabilities and equity	$ 12,398	$ 12,556