The current quarter results include $30 million of operating profit from LeTourneau. In addition, the current quarter results also include $4 million of operating profit from IMM, before $2 million of first year excess purchase accounting charges. Excess purchase accounting charges associated with the write-up of the acquired inventory and backlog from the IMM transaction were completed in the fourth quarter of fiscal 2012.
Net interest expense increased to $17 million in the fourth quarter of 2012, up from $11 million in the prior year, but flat with the third quarter. The increase in interest expense is attributable to incremental borrowings associated with financing the LeTourneau and IMM acquisitions.
The income tax rate was 31.1 percent in the current quarter compared to 31.7 percent in the fourth quarter of 2011. The current quarter includes $3 million of net favorable discrete benefits compared to $3 million of net unfavorable discrete charges last year.
Impact of Acquisitions and Unusual Items on Earnings Per Share
|October 26, 2012||October 28, 2011|
|in millions||Diluted EPS||in millions||Diluted EPS|
Income from continuing operations, attributable to Joy Global Inc., as reported
|LeTourneau excess purchase accounting, net of tax||-||-||3.6||0.03|
|IMM excess purchase accounting, net of tax||1.5||0.01||-||-|
|Acquisition costs, net of tax||-||-||4.2||0.04|
|Incremental interest expense, net of tax||5.3||0.05||4.7||0.04|
|Pension curtailment, net of tax||7.8||0.07||-||-|
|Restructuring charges, net of tax||6.5||0.06||-||-|
|Net discrete tax charges||-||-||2.8||0.03|
|Net discrete tax benefits||3.1||0.03||-||-|
|LeTourneau, net of tax||19.2||0.18||14.1||0.13|
|IMM, net of tax||2.9||0.03||2.5||0.02|
Income from continuing operations attributable to Joy Global Inc., before acquisition activities and unusual items