UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________

Form 8-K
_____________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event Reported): August 29, 2019  

Presidio, Inc.
(Exact Name of Registrant as Specified in Charter)

Delaware001-3802847-2398593
(State or Other Jurisdiction of Incorporation)(Commission File Number)(I.R.S. Employer Identification Number)

 

One Penn Plaza - Suite 2832, New York, NY 10119
(Address of Principal Executive Offices) (Zip Code)

(212) 652-5700
(Registrant's telephone number, including area code)


(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 [   ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 [   ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 [   ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 [   ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company [   ]

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [   ]

 

Securities registered pursuant to Section 12(b) of the Act:

Title of each classTrading SymbolName of each exchange on which registered
Common Stock, par value $0.01 per sharePSDONASDAQ Global Select Market

 

Securities registered pursuant to section 12(g) of the Act: None

 
 

Item 2.02. Results of Operations and Financial Condition.

On August 29, 2019, Presidio, Inc. (the "Company") issued a press release announcing its financial results for its fourth quarter and fiscal year ended June 30, 2019. In the press release, the Company also announced that it would not be holding an earnings conference call to discuss the financial results or provide financial guidance due to the Company’s previously announced definitive agreement to be acquired by funds advised by BC Partners Advisors L.P.  A copy of the press release is being furnished as Exhibit 99.1 hereto and is incorporated herein by reference.

In accordance with General Instruction B.2 of Form 8-K, the information in Item 2.02 of this Current Report on Form 8-K and the press release furnished as Exhibit 99.1 hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits:

Exhibit No.     Description
   
99.1 Press release issued by Presidio, Inc. on August 29, 2019


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 Presidio, Inc.
   
  
Date: August 29, 2019By: /s/ Elliot Brecher        
  Elliot Brecher
  Senior Vice President and General Counsel
  


Exhibit Index

 

Exhibit No.     Description
   
99.1 Press release issued by Presidio, Inc. on August 29, 2019

EdgarFiling

EXHIBIT 99.1

Presidio, Inc. Reports Fourth Quarter and Year-End Fiscal 2019 Results

Record Quarterly Revenue, up 9.8% year over year
Quarterly Cash Dividend Declared of $0.04 per share

NEW YORK, Aug. 29, 2019 (GLOBE NEWSWIRE) -- Presidio, Inc. (NASDAQ:PSDO) (together with its subsidiaries, “Presidio” or the “Company”), a leading North American IT solutions provider delivering Digital Infrastructure, Cloud and Security solutions to create agile, secure infrastructure platforms for its customers, today announced its financial results for its fiscal fourth quarter and fiscal year ended June 30, 2019.

         
  Three Months Ended   Fiscal Year Ended  
(in $ millions) June 30,
2019
 June 30,
2018
 % Chg June 30,
2019
 June 30,
2018
 % Chg
    (as adjusted)1     (as adjusted)1  
Total Revenue $803.2  $731.3  9.8% $3,026.1  $2,765.2  9.4%
Total Gross Margin $168.0  $150.4  11.7% $638.4  $584.0  9.3%
Gross Margin % 20.9% 20.6% 0.3% 21.1% 21.1% %
Net Income $9.9  $14.1  (29.8)% $35.2  $133.9  (73.7)%
Diluted EPS $0.11  $0.15  (26.7)% $0.40  $1.39  (71.2)%
Adjusted EBITDA2 $61.8  $57.0  8.4% $234.8  $223.2  5.2%
Adjusted EBITDA Margin %2 7.7% 7.8% (0.1)% 7.8% 8.1% (0.3)%
Adjusted Net Income2 $35.5  $32.6  8.9% $135.4  $122.6  10.4%
Pro Forma Adjusted Net Income3 $35.5  $32.6  8.9% $134.2  $126.0  6.5%
Pro Forma Diluted EPS3 $0.41  $0.34  20.6% $1.56  $1.31  19.1%
                       

1 Amounts shown “as adjusted” throughout this release reflect the full retrospective adoption of ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606).

2 This financial measure is not based on U.S. GAAP. Please refer to the section of this press release entitled “About Non-GAAP and Pro Forma Financial Measures” for additional information and to the section entitled “Non-GAAP Reconciliations” for reconciliation to the most directly comparable U.S. GAAP measure.

3 This non-GAAP financial measure adjusts certain historical data on a pro forma basis following certain transactions.  Please refer to the section of this press release entitled “About Non-GAAP and Pro Forma Financial Measures” for additional information and to the section entitled “Non-GAAP Reconciliations” for reconciliation to the most directly comparable U.S. GAAP measure.

Financial Highlights for the Fiscal Fourth Quarter Ended June 30, 2019

Financial Highlights for the Fiscal Year Ended June 30, 2019

Capital Resources and Other Financial Highlights

Dividend

Presidio announced today that its Board of Directors approved a quarterly cash dividend of $0.04 per share to stockholders. The dividend will be paid on October 4, 2019 to stockholders of record as of the close of business on September 25, 2019. The declaration and payment of future dividends will continue to be subject to the discretion and approval of the Company’s Board of Directors and will be dependent upon, among other things, the Company’s financial position, results of operations and cash flow.

Subsequent Event

On August 14, 2019, the Company announced that it had entered into a definitive agreement to be acquired by funds advised by BC Partners in an all-cash transaction valued at approximately $2.1 billion. Under the terms of the agreement, the Company’s stockholders will receive $16.00 per share in cash upon the closing of the transaction. Closing of the transaction is subject to customary conditions, including approval by the holders of a majority of the outstanding shares of Presidio common stock, expiration or early termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, and other required regulatory approvals, including approval from CFIUS. The transaction is currently expected to close in the fourth quarter of calendar year 2019.

Conference Call Information

Due to the previously announced definitive agreement to be acquired by funds advised by BC Partners, a leading international investment firm, Presidio does not plan to host an earnings conference call to discuss fiscal fourth quarter and full-year fiscal 2019 financial results or provide financial guidance.

About Non-GAAP and Pro Forma Financial Measures

Our management regularly monitors certain financial measures to track the progress of our business against internal goals and targets. In addition to financial information presented in accordance with GAAP, management uses Adjusted EBITDA, Adjusted Net Income, Pro Forma Adjusted Net Income, Pro Forma Diluted EPS and Free Cash Flow (collectively, "non-GAAP measures," as further described below) in its evaluation of past performance and prospects for the future. These non-GAAP measures should be considered in addition to, not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. They are not measurements of our financial performance under GAAP and should not be considered as alternatives to net income or revenue, as applicable, or any other performance measures derived in accordance with GAAP and may not be comparable to other similarly titled measures of other businesses. These non-GAAP measures have limitations as analytical tools and you should not consider them in isolation or as a substitute for analysis of our operating results as reported under GAAP and they include adjustments for items that may occur in future periods. However, we believe these adjustments are appropriate because the amounts recognized can vary significantly from period to period, do not directly relate to the ongoing operations of our business and complicate comparisons of our internal operating results and operating results of other peer companies over time.

We also adjust certain historical data on a pro forma basis following certain significant transactions. Specifically, we have provided a calculation of Pro Forma Adjusted Net Income to adjust our reported results for the fiscal year ended June 30, 2018 for:

We have also provided a calculation of Pro Forma Adjusted Net Income to adjust our reported results for the fiscal year ended June 30, 2019 for higher after-tax interest expense associated with the incremental term loans used to fund the Share Repurchase that occurred in September 2018, as if the transaction occurred on July 1, 2018.

Pro Forma Adjusted Net Income is for illustrative and informational purposes and is not intended to represent or be indicative of what our financial condition or results of operations would have been had the transactions occurred on the dates indicated. Pro Forma Adjusted Net Income should not be considered representative of our future financial condition or results of operations.

About Presidio

Presidio is a leading North American IT solutions provider focused on Digital Infrastructure, Cloud and Security solutions to create agile, secure infrastructure platforms for middle-market customers. We deliver this technology expertise through a full life cycle model of professional, managed, and support services including strategy, consulting, implementation and design. By taking the time to deeply understand how our clients define success, we help them harness technology advances, simplify IT complexity and optimize their environments today while enabling future applications, user experiences, and revenue models. As of June 30, 2019, we serve approximately 7,900 middle-market, large, and government organizations across a diverse range of industries. Approximately 2,900 Presidio professionals, including more than 1,600 technical engineers, are based in 60+ offices across the United States in a unique, local delivery model combined with the national scale of a $3.0 billion dollar industry leader. We are passionate about driving results for our clients and delivering the highest quality of service in the industry. For more information visit: www.presidio.com.

Source: Presidio, Inc.

Contact Information

Investor Relations Contact:
Ed Yuen
866-232-3762
investors@presidio.com

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

This press release contains “forward looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. The use of words such as “anticipates,” “expects,” “intends,” “plans” and “believes,” among others, generally identify forward-looking statements. These forward-looking statements include statements relating to: future financial performance, business prospects and strategy, anticipated trends, prospects in the industries in which our businesses operate and other similar matters. These forward looking statements are based on management’s current expectations and assumptions about future events, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Actual results could differ materially from those contained in these forward looking statements for a variety of reasons, including, among others: risks and uncertainties related to the capital markets, changes in senior management at Presidio, changes in our relationship with our vendor partners, adverse changes in economic conditions, risks resulting from a decreased demand for Presidio’s information technology solutions, risks relating to rapid technological change in Presidio’s industry and risks relating to acquisitions or regulatory changes. Risks relating to Presidio’s previously announced definitive agreement to be acquired by funds advised by BC Partners include, among other things, risks related to the satisfaction of the conditions to closing the acquisition (including the failure to obtain necessary regulatory approvals) in the anticipated timeframe or at all, obtaining the requisite approval of the stockholders of Presidio, risks related to the debt financing arrangements, disruption from the transaction making it more difficult to maintain business and operational relationships, significant transaction costs, unknown liabilities, and the risk of litigation and/or regulatory actions related to the proposed acquisition. Certain of these and other risks and uncertainties are discussed in Presidio’s filings with the Securities and Exchange Commission. Other unknown or unpredictable factors that could also adversely affect our business, financial condition and results of operations may arise from time to time. In light of these risks and uncertainties, these forward looking statements may not prove to be accurate. Accordingly, you should not place undue reliance on these forward looking statements, which only reflect the views of our management as of the date of this press release. We do not undertake to update these forward-looking statements.

Non-GAAP Reconciliations

The reconciliation of Net Income to Adjusted EBITDA for each of the periods presented is as follows:

    
 Three Months Ended June 30, Fiscal Year Ended June 30,
 2019 2018 2019 2018
(in millions)  (as adjusted)   (as adjusted)
Adjusted EBITDA Reconciliation:       
Net income$9.9  $14.1  $35.2  $133.9 
Total depreciation and amortization (1)22.8  22.9  90.9  89.5 
Interest and other (income) expense13.0  10.7  51.3  60.5 
Income tax expense (benefit)5.4  3.4  15.0  (79.9)
EBITDA51.1  51.1  192.4  204.0 
Adjustments:       
Share-based compensation expense2.6  1.4  9.5  7.0 
Purchase accounting adjustments (2)0.1    0.2  0.3 
Transaction costs (3)1.8  4.5  21.0  10.8 
Other costs (4)6.2    11.7  1.1 
Total adjustments10.7  5.9  42.4  19.2 
Adjusted EBITDA$61.8  $57.0  $234.8  $223.2 
Adjusted EBITDA % (5)7.7% 7.8% 7.8% 8.1%
            

(1) Includes depreciation and amortization included within total operating expenses and cost of revenue.
         
(2) Includes noncash adjustments associated with purchase accounting (including inventory step up, deferred revenue step down and revaluation of deferred rent).

(3)  Includes transaction-related expenses such as: stay, retention and earnout bonuses, transaction-related advisory and diligence fees and transaction-related legal, accounting and tax fees.

(4) Includes one-time inventory write-offs, and non-recurring business optimization expenses.

(5) Adjusted EBITDA % represents the ratio of Adjusted EBITDA to Total Revenue.

The reconciliation of Net Income to Adjusted Net Income and Pro Forma Adjusted Net Income for each of the periods presented is as follows:

    
 Three Months Ended June 30, Fiscal Year Ended June 30,
 2019 2018 2019 2018
(in millions)  (as adjusted)   (as adjusted)
Adjusted Net Income reconciliation:       
Net income$9.9  $14.1  $35.2  $133.9 
Adjustments:       
Amortization of intangible assets18.8  18.9  75.2  74.4 
Amortization of debt issuance costs0.8  0.9  3.5  4.5 
Loss on extinguishment of debt0.6    2.1  14.8 
Share-based compensation expense2.6  1.4  9.5  7.0 
Purchase accounting adjustments0.1    0.2  0.3 
Transaction costs1.8  4.5  21.0  10.8 
Other costs6.2    11.7  1.1 
Revaluation of federal deferred taxes  (1.7)   (94.1)
Income tax impact of adjustments1(5.3) (5.5) (23.0) (30.1)
Total adjustments25.6  18.5  100.2  (11.3)
Adjusted Net Income35.5  32.6  135.4  122.6 
Pro Forma Adjustments:       
Interest on notes redeemed, net savings      3.3 
Interest savings on January 2018 term loan repricing      1.7 
Interest expense on September 2018 term loan borrowing    (1.7)  
Income tax impact of adjustments    0.5  (1.6)
Total Pro Forma adjustments    (1.2) 3.4 
Pro Forma Adjusted Net Income$35.5  $32.6  $134.2  $126.0 
                

(1) Includes an estimated tax impact of the adjustments to net income at our average statutory rate to arrive at an appropriate effective tax rate on Adjusted Net Income, except for (i) the adjustment of certain transaction costs that are permanently nondeductible for tax purposes and (ii) the impact of tax-deductible goodwill and intangible assets resulting from certain historical acquisitions and further adjusted for discrete tax items such as: the tax benefit associated with excess stock compensation deductions and the remeasurement of deferred tax liabilities due to tax rate changes.

The reconciliation of Pro Forma weighted-average shares - diluted and Pro Forma Diluted EPS from GAAP weighted-average shares for each of the periods presented is as follows:

    
 Three Months Ended June 30, Fiscal Year Ended June 30,
 2019 2018 2019 2018
Share count:       
Weighted-average shares – basic82,773,204  92,678,947  84,642,698  91,891,295 
Dilutive effect of share-based awards3,423,946  3,809,223  3,743,520  4,336,283 
Weighted-average shares – diluted86,197,150  96,488,170  88,386,218  96,227,578 
Pro Forma share adjustment for share repurchase1    (2,179,452)  
Total Pro Forma adjustments    (2,179,452)  
Pro Forma weighted-average shares – diluted86,197,150  96,488,170  86,206,766  96,227,578 
        
Diluted EPS$0.11  $0.15  $0.40  $1.39 
Pro Forma Diluted EPS$0.41  $0.34  $1.56  $1.31 
                

(1) Includes an adjustment to reflect the 10,750,000 shares repurchased during the period as if the repurchase had occurred at the beginning of the period that are not already reflected in the basic weighted-average shares presented.

We define free cash flow as our net cash provided by operating activities adjusted to: (i) include the net change in accounts payable - floor plan, (ii) include the aggregate net cash impact of our leasing business, (iii) include purchases of property and equipment and (iv) exclude cash payments for acquisition-related earnout bonuses.

The following table presents the aggregate net cash impact of our leasing business for the three months and fiscal years ended June 30, 2019 and 2018 (in millions):

    
 Three Months Ended June 30, Fiscal Year Ended June 30,
 2019 2018 2019 2018
Additions of equipment under sales-type and direct financing leases$(17.0) $(27.7) $(139.8) $(108.3)
Proceeds from collection of financing receivables0.4  1.1  7.2  4.1 
Additions to equipment under operating leases(1.0) (0.1) (1.3) (1.6)
Proceeds from disposition of equipment under operating leases0.1    0.7  0.7 
Proceeds from the discounting of financing receivables20.2  33.1  161.5  114.6 
Retirements of discounted financing receivables(2.0) (4.3) (23.6) (10.0)
Aggregate net cash impact of leasing business$0.7  $2.1  $4.7  $(0.5)
                

The following table presents a reconciliation of Free Cash Flow from net cash provided by operating activities for the three and twelve months ended June 30, 2019 and 2018 (in millions):

    
 Three Months Ended June 30, Fiscal Year Ended June 30,
 2019 2018 2019 2018
Net cash provided by operating activities$1.4  $49.3  $108.0  $192.0 
Adjustments to reconcile to free cash flow:       
Net change in accounts payable — floor plan30.3  0.8  2.1  (54.3)
Aggregate net cash impact of leasing business0.7  2.1  4.7  (0.5)
Purchases of property and equipment(3.9) (3.9) (15.1) (14.4)
Payment of acquisition-related earnout bonuses    2.0   
Total adjustments27.1  (1.0) (6.3) (69.2)
Free cash flow$28.5  $48.3  $101.7  $122.8 
                


 
PRESIDIO, INC.
Consolidated Balance Sheets
(in millions, except share data)
        
 As of
June 30, 2019
 As of
June 30, 2018
Assets  (as adjusted)
Current Assets   
Cash and cash equivalents$30.7  $37.0 
Accounts receivable, net674.6  608.7 
Unbilled accounts receivable, net205.3  171.5 
Financing receivables, current portion96.4  88.3 
Inventory25.2  27.7 
Prepaid expenses and other current assets123.1  112.5 
Total current assets1,155.3  1,045.7 
Property and equipment, net36.4  35.9 
Financing receivables, less current portion140.3  116.8 
Goodwill803.7  803.7 
Identifiable intangible assets, net625.1  700.3 
Other assets110.1  33.9 
Total assets$2,870.9  $2,736.3 
Liabilities and Stockholders’ Equity   
Current Liabilities   
Current maturities of long-term debt$  $ 
Accounts payable – trade497.7  457.7 
Accounts payable – floor plan212.7  210.6 
Accrued expenses and other current liabilities294.6  228.2 
Discounted financing receivables, current portion93.9  85.2 
Total current liabilities1,098.9  981.7 
Long-term debt, net of debt issuance costs733.8  671.2 
Discounted financing receivables, less current portion131.2  108.6 
Deferred income tax liabilities180.6  180.5 
Other liabilities88.0  34.0 
Total liabilities2,232.5  1,976.0 
Commitments and contingencies (Note 13)   
Stockholders’ Equity   
Preferred stock:   
$0.01 par value; 100 shares authorized and zero shares issued and outstanding at June 30, 2019 and June 30, 2018   
Common stock:   
$0.01 par value; 250,000,000 shares authorized; and 82,852,340 and 92,853,983 shares issued and outstanding at June 30, 2019 and June 30, 2018, respectively0.8  0.9 
Additional paid-in capital500.4  644.3 
Retained earnings137.2  115.1 
Total stockholders’ equity638.4  760.3 
Total liabilities and stockholders’ equity$2,870.9  $2,736.3 
        


 
PRESIDIO, INC.
Consolidated Statements of Operations
(in millions, except share and per-share data)
    
 Three Months Ended June 30, Fiscal Year Ended June 30,
 2019 2018 2019 2018
   (as adjusted)   (as adjusted)
Revenue       
Product$667.7  $604.3  $2,509.1  $2,262.8 
Service135.5  127.0  517.0  502.4 
Total revenue803.2  731.3  3,026.1  2,765.2 
Cost of revenue       
Product527.0  478.9  1,972.5  1,782.6 
Service108.2  102.0  415.2  398.6 
Total cost of revenue635.2  580.9  2,387.7  2,181.2 
Gross margin168.0  150.4  638.4  584.0 
Operating expenses       
Selling expenses80.5  72.2  306.4  273.2 
General and administrative expenses35.7  24.1  123.2  101.8 
Transaction costs1.8  4.5  21.0  10.8 
Depreciation and amortization21.7  21.4  86.3  83.7 
Total operating expenses139.7  122.2  536.9  469.5 
Operating income28.3  28.2  101.5  114.5 
Interest and other (income) expense       
Interest expense12.5  10.7  49.9  46.0 
Loss on extinguishment of debt0.6    2.1  14.8 
Other (income) expense, net(0.1)   (0.7) (0.3)
Total interest and other (income) expense13.0  10.7  51.3  60.5 
Income before income taxes15.3  17.5  50.2  54.0 
Income tax expense (benefit)5.4  3.4  15.0  (79.9)
Net income$9.9  $14.1  $35.2  $133.9 
Earnings per share:       
Basic EPS$0.12  $0.15  $0.42  $1.46 
Diluted EPS$0.11  $0.15  $0.40  $1.39 
Weighted-average common shares outstanding:       
Basic82,773,204  92,678,947  84,642,698  91,891,295 
Diluted86,197,150  96,488,170  88,386,218  96,227,578 
            


 
PRESIDIO, INC.
Consolidated Statements of Cash Flows
(in millions)
    
 Three Months Ended June 30, Fiscal Year Ended June 30,
 2019 2018 2019 2018
Net cash provided by operating activities$1.4  $49.3  $108.0  $192.0 
Cash flows from investing activities:       
Acquisition of businesses, net of cash and cash equivalents acquired  (33.3)   (42.8)
Proceeds from collection of escrow related to acquisition of business      0.2 
Additions of equipment under sales-type and direct financing leases(17.0) (27.7) (139.8) (108.3)
Proceeds from collection of financing receivables0.5  1.1  7.2  4.1 
Additions to equipment under operating leases(1.0) (0.1) (1.3) (1.6)
Proceeds from disposition of equipment under operating leases0.1    0.7  0.7 
Purchases of property and equipment(3.9) (3.9) (15.1) (14.4)
Net cash used in investing activities(21.3) (63.9) (148.3) (162.1)
Cash flows from financing activities:       
Proceeds from issuance of common stock under share-based compensation plans1.4  2.1  5.1  8.0 
Common stock repurchased    (158.6)  
Dividends paid(3.3)   (9.9)  
Proceeds from the discounting of financing receivables20.2  33.1  161.5  114.6 
Retirements of discounted financing receivables(2.0) (4.3) (23.6) (10.0)
Deferred financing costs    (0.7) (1.2)
Redemptions and repurchases of senior and subordinated notes      (135.7)
Borrowings on term loans, net of original issue discount    158.1  138.2 
Repayments of term loans(25.0) (5.0) (100.0) (80.0)
Net change in accounts payable — floor plan30.3  0.8  2.1  (54.3)
Net cash provided by (used in) financing activities21.6  26.7  34.0  (20.4)
Net increase (decrease) in cash and cash equivalents1.7  12.1  (6.3) 9.5 
Cash and cash equivalents:       
Beginning of the period29.0  24.9  37.0  27.5 
End of the period$30.7  $37.0  $30.7  $37.0 
Supplemental disclosures of cash flow information       
Cash paid during the period for:       
Interest$12.2  $8.8  $44.5  $44.8 
Income taxes, net of refunds$1.4  $(9.6) $17.3  $20.3 
Reduction of discounted lease assets and liabilities$27.8  $22.5  $114.9  $102.7