The effective tax rate for the first quarter of 2017 was 24.9%, compared with 27.6%. The first quarter of 2017 reflected net discrete income tax benefits of $1.4 million, compared with $0.6 million. The 2017 amount included a $1.6 million income tax benefit related to share-based accounting, compared with $0.6 million. Excluding the net discrete income tax benefits in both periods, the effective tax rates would have been 28.3% for the first quarter of 2017 and 28.8% for the first quarter of 2016.
Other
Stock option expense was $4.1 million for the first quarter of 2017, compared with $3.4 million. Pension income was $0.7 million for the first quarter of 2017, compared with pension income of $0.5 million. Interest expense, net of interest income, was $8.2 million for the first quarter of 2017, compared with $5.7 million. Interest expense in the first quarter of 2017 reflects $2.3 million in fees related to the terminated bridge facility in connection with the acquisition of e2v. Corporate expense increased to $22.7 million for the first quarter of 2017, compared with $10.8 million, and reflected $10.4 million in transaction costs related to the e2v acquisition. Other expense was $9.3 million for the first quarter of 2017, compared with $1.3 million. Other expense in the first quarter of 2017 reflected $6.0 million of expense for a foreign currency option contract related to the e2v acquisition as well as higher foreign currency expense.
Outlook
Based on its current outlook, the company’s management believes that second quarter 2017 GAAP earnings per diluted share will be in the range of $1.20 to $1.25 and full year 2017 GAAP earnings per diluted share will be in the range of $5.20 to $5.30. The company’s management believes that second quarter 2017 adjusted earnings per diluted share will be in the range of $1.27 to $1.32, and full year 2017 adjusted earnings per diluted share will be in the range of $5.76 to $5.86, compared to the prior outlook of $5.40 to $5.50, which excluded e2v. The company’s effective tax rate for 2017 is expected to be 28.3%, before discrete items.
|
Second Quarter Outlook |
Full Year Outlook |
|||||||||||||
| 2017 | 2017 | |||||||||||||
| Adjusted fully diluted earnings per share outlook: | ||||||||||||||
| Fully diluted earnings per share outlook | $1.20 - $1.25 | $5.20 - $5.30 | ||||||||||||
| e2v transaction costs, including stamp duty, advisory, legal and other consulting fees and other costs (a)(b) | 0.03 | 0.27 | ||||||||||||
| e2v inventory fair value step-up amortization expense (a)(b) | 0.04 | 0.13 | ||||||||||||
| e2v funds-certain bank bridge facility commitment expense (b) | — | 0.05 | ||||||||||||
| Foreign currency option contract expense to hedge the e2v purchase price (b) | — | 0.11 | ||||||||||||
| Adjusted fully diluted earnings per share outlook | $1.27 - $1.32 | $5.76 - $5.86 |
| (a) | The adjustments to the second quarter outlook are net of taxes of $0.03 per diluted share. | ||
| (b) | The adjustments to the full year outlook are net of taxes of $0.22 per diluted share. | ||
