December 10, 2016

A boutique research firm with equity, credit, and macroeconomic expertise

UAFRS - As-Reported PP&E is distorting your conclusions from Financial Ratios - and how to fix it

Valens Research would like to share with you our recent discussion on one of the key adjustments that are part of the Uniform Adjusted Financial Reporting Standards (UAFRS), the Constant Currency Asset adjustment. This education article discusses the importance of removing the distortions that are created in financial reporting related to inflation. Specifically, the impact of inflating on distorting analysis related to Property, Plant & Equipment (PP&E;). The issue is how companies with very different aged assets, one with exceptionally new assets and another with older assets, can have artificially different levels of profitability, just due to the book value of their assets, even if the replacement cost of those two assets is the same. If this distortion is not removed from the financial statements, investors may think that companies with older assets have better performance, when those companies, who also have capex coming sooner around the corner, actually might have the same or worse profitability of their peers with newer assets. This can lead to investors making incorrect investments based on corporate quality. In the file linked below, you will find case studies across each sector showing the material impact this distortion can have on financial statement analysis, and how, more often than not, reported figures can lead to metrics that are WAY off from reflecting how well the company is actually doing. Hope you find the article interesting. Valens' equity and credit research relies on a bedrock of deep fundamental forensic analysis with a coverage of over 4,000 equities and all major corporate credit. That means “cross-capital” equities and credit research are not siloed, but instead are fundamentally aggregated and compared with orthogonal data points. To access all our other education documents on Valens Research, click here - http://app.valens-research.com/isv/articles?p=3

Professor

oel Litman

Chief Investment Strategist

joel.litman@valens

securities.com

Uniform Adjusted Financial

Reporting Standards: Constant

Currency Asset Adjustment

By restating historical asset values into constant

currency values under the UAFRS framework, one

sees significant improvement in the reliability of

business performance and valuation metrics. Failing

to do so creates a gross mismatch between assets

and income, distorting most financial analyses.

Under U.S. Generally Accepted Accounting Principles (GAAP)

and international accounting standards (other GAAP, IAS or

IFRS), capital expenditures are booked at purchase price as

assets and then depreciated over time. This sounds simple,

however

over time

it creates a significant mismatch between

the assets and the profits those assets generate.

If a business were to spend $100 on an asset in 2005 and then

receive a return on the asset of $10 in 2015, no investor would

see that as a 10% real return. The investor would first restate

the $100 into 2015 dollars.

Even under low inflation of 2% per year, that would still be a

constant dollar adjustment to $122. Comparing that on an

apples

apples basis against the $10, a simple return on assets

metric drops from 10% to 8%. If depreciation were part of

arriving at the $10 return, it would also require restating the

profit level as the depreciation number would be too low.

The size and age of the assets relative to the revenues and profit

levels of the firm drives the level of distortion, and the need to

state assets to constant currency values.

Under UAFRS this is accomplished by estimating the life of the

assets and then using the GDP deflator to adjust the asset value

and the associated depreciation expense into the values of the

currency in the year being measured.

The following pages show examples of differences in Return On

Asset calculations when making this single constant currency

adjustment, and when not. The variance across non

financial

firms is quite significant so as to make the constant currency

asset adjustment super

material in importance to any measure

of profitability, and hence, valuations.

Valens Securities

110 Cambridge Street

Cambridge, MA 02141

+1 (646) 491

2601

Page

Consumer

Discretionary

Performance & Valuation

Prime:

Constant Currency Asset Adjustment

Choice Hotels International Inc.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

47.8%

56.8%

49.7%

35.3%

31.9%

21.5%

24.8%

28.7%

30.3%

32.5%

Unadjusted ROA'

95.2%

102.8%

90.7%

63.4%

48.0%

35.0%

37.8%

37.3%

36.9%

38.0%

Variance

-47.4%

-46.0%

-41.0%

-28.1%

-16.2%

-13.5%

-13.0%

-8.6%

-6.5%

-5.5%

Tupperware Brands Corporation

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

4.3%

4.6%

5.6%

7.0%

9.2%

10.7%

11.9%

11.6%

12.8%

11.7%

Unadjusted ROA'

9.9%

10.0%

10.7%

11.8%

13.2%

14.6%

16.4%

16.0%

17.3%

15.6%

Variance

-5.6%

-5.4%

-5.1%

-4.8%

-4.1%

-3.8%

-4.4%

-4.3%

-4.5%

-4.0%

The McClatchy Company

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

5.8%

6.3%

23.3%

2.8%

9.7%

14.0%

13.2%

13.3%

8.8%

8.0%

Unadjusted ROA'

20.8%

15.2%

9.3%

15.8%

12.5%

18.9%

18.2%

17.7%

13.8%

11.8%

Variance

-15.0%

-8.9%

14.0%

-13.0%

-2.8%

-5.0%

-4.4%

-5.0%

-3.8%

Ethan Allen Interiors Inc.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

10.7%

7.8%

5.1%

3.0%

-3.0%

1.0%

2.7%

1.8%

2.3%

2.0%

Unadjusted ROA'

12.4%

9.6%

6.7%

3.9%

-2.6%

2.5%

5.0%

4.1%

4.9%

4.6%

Variance

-1.7%

-1.8%

-1.6%

-1.0%

-0.4%

-1.4%

-2.3%

-2.6%

Discovery Communications, Inc.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

-8.6%

-4.5%

-6.7%

30.6%

52.6%

24.4%

57.2%

17.2%

18.3%

25.4%

Unadjusted ROA'

-7.8%

-6.8%

-6.5%

31.8%

54.4%

28.3%

47.9%

30.4%

28.5%

32.8%

Variance

-0.8%

2.3%

-0.1%

-1.3%

-1.8%

-3.9%

9.4%

-13.2%

-10.1%

-7.4%

Gannett Co., Inc.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

0.7%

0.6%

3.9%

-2.7%

8.9%

7.1%

5.9%

11.4%

7.6%

10.6%

Unadjusted ROA'

2.7%

2.5%

6.5%

-1.4%

11.5%

9.1%

7.5%

13.7%

9.5%

15.5%

Variance

-2.0%

-1.9%

-2.6%

-1.2%

-2.6%

-2.0%

-1.6%

-2.3%

-1.9%

-4.9%

The Goodyear Tire & Rubber Company

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

3.9%

1.6%

0.1%

1.0%

-0.2%

0.8%

4.0%

2.9%

5.7%

5.3%

Unadjusted ROA'

6.9%

3.9%

1.9%

2.8%

1.1%

2.2%

5.8%

4.4%

7.6%

7.0%

Variance

-3.0%

-2.3%

-1.9%

-1.3%

-1.4%

-1.7%

-1.6%

-1.9%

-1.7%

Whirlpool Corp.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

6.3%

6.8%

7.6%

5.3%

3.5%

6.9%

2.6%

5.3%

8.3%

5.6%

Unadjusted ROA'

10.1%

10.6%

11.5%

8.3%

5.5%

9.2%

4.3%

7.2%

10.6%

7.6%

Variance

-3.9%

-3.8%

-3.9%

-3.0%

-2.0%

-2.3%

-1.7%

-1.9%

-2.3%

-2.0%

Winnebago Industries, Inc.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

13.7%

11.3%

9.2%

-1.5%

-31.9%

-1.3%

2.5%

7.7%

9.9%

Unadjusted ROA'

15.7%

13.6%

11.2%

-0.5%

-34.7%

-0.2%

4.0%

3.9%

10.0%

12.6%

Variance

-2.0%

-2.3%

-2.0%

-1.0%

2.8%

-1.1%

-1.5%

-1.4%

-2.3%

-2.7%

The New York Times Company

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

7.3%

11.3%

5.9%

4.3%

1.1%

4.4%

5.8%

7.2%

3.2%

7.2%

Unadjusted ROA'

11.3%

16.1%

8.9%

6.0%

2.3%

6.0%

7.5%

9.1%

4.8%

9.6%

Variance

-4.1%

-4.8%

-2.9%

-1.7%

-1.2%

-1.6%

-1.7%

-2.0%

-1.6%

-2.4%

Note

The

apostrophe

after

any

metric,

such

ROA’,

denotes

that

has

been

adjusted

using

UAFRS

adjusted

financial

data

instead

reported

financial

information

ROA’

UAFRS

adjusted

return

assets

calculation

Other

examples

include

EPS’,

P/E’,

Assets’,

Margins’,

Earnings’,

and

forth

Page

Consumer

Staples

Performance & Valuation

Prime:

Constant Currency Asset Adjustment

Ingredion Incorporated

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

1.1%

2.0%

3.4%

6.2%

1.7%

3.2%

6.6%

7.3%

6.4%

6.6%

Unadjusted ROA'

4.7%

5.9%

7.5%

10.7%

3.9%

5.4%

9.5%

10.2%

9.0%

9.4%

Variance

-3.6%

-3.9%

-4.2%

-4.5%

-2.2%

-2.9%

-2.6%

-2.8%

Reynolds American Inc.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

67.1%

67.4%

60.0%

52.4%

67.6%

72.5%

78.4%

87.0%

69.7%

65.3%

Unadjusted ROA'

96.4%

98.4%

87.0%

72.7%

91.1%

95.2%

107.5%

119.9%

89.4%

82.9%

Variance

-29.2%

-31.0%

-27.0%

-20.3%

-23.5%

-22.7%

-29.1%

-32.9%

-19.7%

-17.6%

Weis Markets, Inc.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

3.1%

2.4%

2.0%

3.3%

3.5%

3.6%

3.1%

3.3%

2.7%

Unadjusted ROA'

6.6%

5.7%

5.1%

4.3%

5.5%

5.7%

5.3%

5.4%

4.5%

Variance

-3.5%

-3.2%

-2.7%

-2.4%

-2.3%

-2.0%

-2.1%

-1.8%

SUPERVALU Inc.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

6.0%

7.3%

6.6%

9.3%

5.4%

-3.1%

4.0%

5.9%

11.7%

10.0%

Unadjusted ROA'

8.4%

10.6%

9.5%

11.7%

7.2%

-2.3%

6.4%

8.4%

14.1%

12.3%

Variance

-2.5%

-3.3%

-2.9%

-2.3%

-1.7%

-0.9%

-2.4%

-2.5%

-2.4%

Archer-Daniels-Midland Company

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

4.1%

3.5%

2.9%

3.7%

4.4%

3.6%

2.7%

2.4%

3.2%

5.9%

Unadjusted ROA'

7.8%

6.6%

5.0%

6.2%

6.3%

4.8%

4.0%

3.8%

4.6%

7.7%

Variance

-3.7%

-3.1%

-2.1%

-2.5%

-1.9%

-1.2%

-1.4%

-1.3%

-1.8%

Coca-Cola Bottling Co. Consolidated

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

5.2%

5.6%

4.4%

2.0%

7.4%

6.6%

5.2%

6.0%

4.4%

Unadjusted ROA'

8.7%

9.3%

8.0%

4.8%

10.7%

9.6%

7.8%

8.2%

9.1%

7.0%

Variance

-3.5%

-3.6%

-2.8%

-3.2%

-3.0%

-2.6%

-3.0%

-3.1%

-2.6%

Darling Ingredients Inc.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

3.2%

2.7%

10.8%

13.1%

10.6%

4.4%

24.0%

17.4%

12.5%

10.0%

Unadjusted ROA'

7.0%

6.5%

16.6%

18.0%

13.8%

6.7%

28.7%

20.7%

14.6%

11.6%

Variance

-3.9%

-3.8%

-5.8%

-4.9%

-3.1%

-2.3%

-4.7%

-3.3%

-2.1%

-1.5%

Campbell Soup Company

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

16.4%

13.9%

17.6%

16.3%

19.3%

19.8%

16.7%

15.5%

18.7%

15.1%

Unadjusted ROA'

22.5%

18.4%

24.6%

21.8%

24.1%

24.0%

20.9%

19.8%

22.7%

18.8%

Variance

-6.2%

-4.5%

-7.0%

-5.5%

-4.8%

-4.2%

-4.3%

-4.0%

-3.7%

The Hershey Company

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

16.5%

15.3%

15.1%

12.4%

20.2%

19.3%

18.7%

21.9%

23.8%

20.4%

Unadjusted ROA'

21.6%

21.0%

21.2%

17.3%

25.2%

23.5%

22.6%

25.9%

28.1%

25.8%

Variance

-5.1%

-5.7%

-6.1%

-4.9%

-5.0%

-4.2%

-3.9%

-4.0%

-4.3%

-5.4%

Kellogg Company

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

16.5%

16.6%

15.6%

16.2%

16.4%

15.4%

16.8%

15.0%

9.3%

16.7%

Unadjusted ROA'

22.5%

23.1%

21.6%

21.9%

20.8%

19.0%

20.8%

18.7%

12.0%

20.3%

Variance

-6.0%

-6.5%

-6.0%

-5.7%

-4.4%

-3.6%

-4.0%

-3.7%

-2.7%

-3.6%

Note

The

apostrophe

after

any

metric,

such

ROA’,

denotes

that

has

been

adjusted

using

UAFRS

adjusted

financial

data

instead

reported

financial

information

ROA’

UAFRS

adjusted

return

assets

calculation

Other

examples

include

EPS’,

P/E’,

Assets’,

Margins’,

Earnings’,

and

forth

Page

Energy

Performance & Valuation

Prime:

Constant Currency Asset Adjustment

Natural Resource Partners LP

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

0.2%

0.3%

0.8%

7.9%

8.0%

11.7%

15.3%

12.7%

10.0%

3.1%

Unadjusted ROA'

28.0%

22.6%

22.4%

31.2%

22.8%

25.4%

32.8%

27.9%

22.9%

14.2%

Variance

-27.8%

-22.3%

-21.6%

-23.4%

-14.8%

-13.7%

-17.5%

-15.2%

-12.9%

-11.1%

Stone Energy Corp.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

3.2%

3.4%

4.7%

-23.6%

4.8%

0.4%

2.2%

2.0%

1.2%

0.8%

Unadjusted ROA'

7.1%

7.0%

8.5%

-25.2%

8.8%

3.0%

5.5%

5.2%

4.0%

3.3%

Variance

-3.9%

-3.6%

-3.8%

1.6%

-4.0%

-2.6%

-3.3%

-3.1%

-2.8%

-2.5%

Magellan Midstream Partners LP

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

11.9%

13.4%

14.5%

12.0%

8.7%

10.7%

12.9%

13.3%

14.7%

18.8%

Unadjusted ROA'

16.5%

18.9%

19.8%

17.4%

12.0%

14.5%

16.9%

17.4%

20.1%

24.9%

Variance

-4.6%

-5.5%

-5.3%

-5.4%

-3.3%

-3.8%

-4.1%

-5.4%

-6.1%

ONEOK Partners, L.P.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

7.7%

8.1%

8.7%

10.9%

10.1%

10.8%

15.9%

12.8%

10.5%

11.1%

Unadjusted ROA'

13.6%

14.0%

13.9%

16.2%

13.8%

14.3%

20.0%

15.6%

12.7%

13.2%

Variance

-5.9%

-5.2%

-5.3%

-3.7%

-3.5%

-4.2%

-2.8%

-2.3%

-2.1%

Devon Energy Corporation

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

9.4%

6.4%

3.7%

15.6%

-4.1%

5.2%

2.4%

-0.4%

-0.7%

0.7%

Unadjusted ROA'

14.1%

9.9%

6.4%

22.6%

-2.8%

9.6%

5.7%

1.6%

1.1%

3.4%

Variance

-4.8%

-3.5%

-2.7%

-7.0%

-1.3%

-4.4%

-3.3%

-2.0%

-1.8%

-2.7%

Dorchester Minerals LP

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

20.2%

18.0%

13.9%

23.4%

6.1%

11.2%

13.2%

10.9%

11.8%

11.3%

Unadjusted ROA'

26.4%

25.0%

20.5%

33.7%

9.8%

15.9%

18.6%

16.2%

17.7%

18.6%

Variance

-6.1%

-6.9%

-6.6%

-10.3%

-3.7%

-4.7%

-5.4%

-5.2%

-5.9%

-7.3%

Marathon Oil Corporation

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

8.1%

8.6%

4.2%

5.7%

0.2%

1.7%

3.2%

3.7%

4.5%

-1.8%

Unadjusted ROA'

13.2%

13.6%

7.2%

8.8%

1.6%

3.3%

5.6%

5.9%

6.8%

-0.5%

Variance

-5.1%

-3.0%

-3.1%

-1.4%

-1.7%

-2.4%

-2.2%

-2.3%

-1.3%

NuStar Energy L.P.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

5.4%

8.0%

6.4%

8.3%

6.9%

6.4%

4.7%

6.8%

8.0%

Unadjusted ROA'

7.9%

10.8%

8.5%

10.4%

8.3%

8.1%

7.9%

6.1%

8.6%

10.0%

Variance

-2.4%

-2.8%

-2.1%

-1.4%

-1.2%

-1.4%

-1.8%

-2.0%

CONSOL Energy Inc.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

4.5%

5.3%

2.9%

6.0%

7.6%

5.8%

6.7%

2.4%

2.2%

3.9%

Unadjusted ROA'

8.8%

9.6%

6.1%

9.3%

10.3%

7.5%

8.5%

3.3%

5.2%

Variance

-4.3%

-3.2%

-3.3%

-2.8%

-1.7%

-1.9%

-0.9%

-1.1%

-1.3%

Halcón Resources Corporation

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

4.5%

13.1%

-3.1%

-15.9%

0.7%

1.9%

1.4%

-3.8%

0.5%

4.0%

Unadjusted ROA'

6.0%

15.7%

-2.2%

-16.9%

2.5%

3.9%

3.4%

-3.3%

3.1%

7.7%

Variance

-1.5%

-2.6%

-0.9%

1.0%

-1.8%

-2.0%

-0.5%

-2.6%

-3.7%

Note

The

apostrophe

after

any

metric,

such

ROA’,

denotes

that

has

been

adjusted

using

UAFRS

adjusted

financial

data

instead

reported

financial

information

ROA’

UAFRS

adjusted

return

assets

calculation

Other

examples

include

EPS’,

P/E’,

Assets’,

Margins’,

Earnings’,

and

forth

Page

Healthcare

Performance & Valuation

Prime:

Constant Currency Asset Adjustment

LifePoint Health, Inc.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

7.4%

9.0%

8.3%

-3.7%

1.2%

1.8%

2.2%

2.5%

1.7%

Unadjusted ROA'

10.5%

12.3%

11.8%

-1.4%

5.2%

5.9%

6.7%

6.8%

4.9%

5.2%

Variance

-3.1%

-3.3%

-3.5%

-2.4%

-4.0%

-4.1%

-4.5%

-4.3%

-3.2%

-3.5%

HCA Holdings, Inc.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

7.7%

7.8%

8.5%

7.9%

9.8%

10.8%

12.1%

11.4%

12.2%

Unadjusted ROA'

11.5%

11.3%

12.1%

11.2%

12.8%

13.9%

15.3%

15.4%

14.7%

15.6%

Variance

-3.7%

-3.5%

-3.6%

-3.3%

-3.0%

-3.1%

-3.2%

-3.3%

HEALTHSOUTH Corp.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

3.9%

2.4%

13.7%

17.5%

17.3%

15.0%

14.1%

12.5%

16.6%

14.9%

Unadjusted ROA'

7.6%

4.1%

20.1%

22.6%

20.6%

16.9%

15.9%

14.2%

18.6%

16.9%

Variance

-3.7%

-1.7%

-6.4%

-5.0%

-3.2%

-1.9%

-1.8%

-1.7%

-2.0%

-2.1%

National Healthcare Corp.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

4.3%

2.8%

-2.0%

2.2%

2.8%

3.0%

4.0%

3.0%

2.7%

Unadjusted ROA'

5.4%

3.9%

-1.1%

3.7%

3.9%

4.4%

6.0%

4.9%

4.3%

4.4%

Variance

-1.2%

-1.1%

-1.0%

-1.5%

-1.1%

-1.4%

-2.0%

-1.6%

-1.7%

Tenet Healthcare Corp.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

3.5%

6.0%

4.8%

5.9%

8.5%

7.7%

5.7%

6.1%

10.3%

7.9%

Unadjusted ROA'

5.6%

8.5%

7.1%

8.1%

10.4%

9.2%

7.2%

7.6%

11.9%

9.3%

Variance

-2.1%

-2.5%

-2.3%

-2.2%

-1.9%

-1.5%

-1.4%

-1.6%

-1.4%

West Pharmaceutical Services, Inc.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

7.5%

10.1%

7.5%

8.1%

7.8%

7.3%

7.7%

9.0%

9.1%

Unadjusted ROA'

10.5%

13.5%

10.0%

10.2%

9.6%

9.0%

8.8%

9.2%

10.8%

Variance

-3.0%

-3.5%

-2.5%

-2.1%

-1.8%

-1.6%

-1.5%

-1.6%

-1.7%

Charles River Laboratories International, Inc.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

17.3%

15.4%

13.7%

15.4%

12.2%

13.2%

13.3%

9.0%

8.3%

8.1%

Unadjusted ROA'

19.4%

17.7%

16.0%

18.0%

14.1%

15.1%

15.5%

11.7%

11.3%

11.5%

Variance

-2.1%

-2.3%

-2.6%

-1.8%

-1.9%

-2.3%

-2.6%

-3.0%

-3.4%

Becton, Dickinson and Company

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

14.6%

14.4%

13.9%

14.0%

14.7%

13.7%

14.0%

12.9%

14.1%

13.2%

Unadjusted ROA'

18.2%

18.0%

17.5%

17.2%

17.3%

16.0%

16.4%

15.1%

16.5%

15.4%

Variance

-3.6%

-3.2%

-2.6%

-2.3%

-2.4%

-2.2%

-2.4%

-2.2%

Teleflex Incorporated

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

8.4%

8.7%

2.1%

11.7%

13.8%

16.1%

17.5%

17.0%

18.1%

21.1%

Unadjusted ROA'

11.0%

11.6%

4.5%

15.6%

16.7%

18.8%

19.7%

19.0%

19.6%

22.6%

Variance

-2.7%

-2.9%

-2.4%

-3.9%

-2.9%

-2.7%

-2.2%

-2.1%

-1.5%

-1.6%

Analogic Corporation

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

3.8%

4.2%

1.5%

1.8%

0.5%

2.6%

4.8%

6.0%

6.4%

5.9%

Unadjusted ROA'

5.2%

5.6%

2.6%

2.8%

1.2%

3.4%

5.9%

7.1%

7.5%

6.8%

Variance

-1.4%

-1.1%

-1.0%

-0.7%

-0.8%

-1.1%

-0.9%

Note

The

apostrophe

after

any

metric,

such

ROA’,

denotes

that

has

been

adjusted

using

UAFRS

adjusted

financial

data

instead

reported

financial

information

ROA’

UAFRS

adjusted

return

assets

calculation

Other

examples

include

EPS’,

P/E’,

Assets’,

Margins’,

Earnings’,

and

forth

Page

Industrials

Performance & Valuation

Prime:

Constant Currency Asset Adjustment

Republic Services, Inc.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

7.7%

7.8%

6.3%

0.0%

14.2%

13.7%

13.2%

10.6%

9.1%

8.3%

Unadjusted ROA'

11.6%

12.4%

9.8%

0.8%

16.3%

15.8%

15.5%

12.8%

11.3%

10.7%

Variance

-4.0%

-4.6%

-3.5%

-0.9%

-2.0%

-2.1%

-2.3%

-2.2%

-2.4%

Icahn Enterprises, L.P.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

18.9%

39.3%

24.1%

-44.6%

34.4%

25.8%

57.7%

9.4%

36.5%

8.1%

Unadjusted ROA'

20.4%

39.9%

24.5%

-45.1%

35.7%

27.4%

62.0%

10.3%

40.3%

9.9%

Variance

-1.4%

-0.6%

-0.4%

0.6%

-1.3%

-1.6%

-4.2%

-0.8%

-3.9%

-1.8%

Deluxe Corp.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

42.8%

40.8%

41.0%

36.9%

39.9%

43.6%

35.9%

35.6%

32.8%

36.3%

Unadjusted ROA'

54.2%

55.1%

56.6%

52.4%

53.1%

54.6%

45.5%

44.5%

40.2%

45.3%

Variance

-11.3%

-14.2%

-15.6%

-13.2%

-11.1%

-9.6%

-8.9%

-7.4%

-9.0%

Waste Management, Inc.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

5.9%

4.0%

3.8%

3.7%

-0.8%

4.7%

5.0%

4.6%

1.7%

6.5%

Unadjusted ROA'

9.5%

7.2%

7.0%

6.7%

0.9%

7.5%

8.0%

7.4%

3.8%

9.6%

Variance

-3.6%

-3.2%

-3.0%

-1.6%

-2.8%

-3.0%

-2.8%

-2.1%

-3.2%

Matson, Inc.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

3.2%

2.1%

2.5%

2.3%

1.2%

0.8%

1.6%

3.0%

1.7%

2.4%

Unadjusted ROA'

5.7%

4.3%

4.5%

4.6%

2.7%

2.3%

2.5%

5.0%

3.8%

4.6%

Variance

-2.5%

-2.2%

-2.1%

-2.3%

-1.5%

-0.9%

-2.0%

-2.1%

-2.2%

Steelcase Inc.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

2.0%

2.7%

4.4%

3.5%

0.6%

0.3%

2.2%

3.6%

4.5%

4.9%

Unadjusted ROA'

4.8%

5.4%

6.9%

5.4%

1.9%

1.5%

3.8%

5.5%

6.5%

6.8%

Variance

-2.8%

-2.7%

-2.6%

-2.0%

-1.3%

-1.2%

-1.6%

-1.9%

-2.0%

-1.9%

Albany International Corp.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

7.6%

4.7%

3.4%

0.1%

1.7%

1.0%

10.2%

1.1%

3.8%

Unadjusted ROA'

10.8%

7.2%

5.5%

5.3%

1.2%

3.1%

2.5%

13.9%

2.9%

6.2%

Variance

-3.2%

-2.4%

-2.1%

-1.9%

-1.1%

-1.4%

-1.5%

-3.7%

-1.8%

-2.4%

R.R. Donnelley & Sons Company

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

2.1%

6.8%

10.4%

13.7%

6.8%

4.8%

9.8%

7.6%

7.1%

5.6%

Unadjusted ROA'

5.0%

10.8%

14.2%

17.7%

9.2%

6.9%

13.0%

10.5%

10.0%

8.3%

Variance

-2.9%

-4.0%

-3.8%

-4.0%

-2.4%

-2.0%

-3.2%

-2.9%

-2.7%

Hillenbrand, Inc.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

19.2%

20.3%

19.4%

15.4%

14.8%

15.1%

19.6%

25.0%

21.3%

21.9%

Unadjusted ROA'

27.6%

28.1%

26.5%

19.3%

17.4%

17.7%

23.2%

29.9%

24.9%

25.5%

Variance

-8.4%

-7.8%

-7.1%

-3.9%

-2.6%

-3.6%

-4.8%

-3.6%

Titan International Inc.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

1.3%

0.1%

1.5%

3.7%

0.6%

4.8%

6.9%

5.2%

4.4%

-1.3%

Unadjusted ROA'

4.9%

2.8%

4.1%

6.0%

1.9%

6.5%

8.7%

6.4%

5.4%

-0.6%

Variance

-3.6%

-2.7%

-2.6%

-2.3%

-1.4%

-1.7%

-1.8%

-1.2%

-1.0%

-0.7%

Note

The

apostrophe

after

any

metric,

such

ROA’,

denotes

that

has

been

adjusted

using

UAFRS

adjusted

financial

data

instead

reported

financial

information

ROA’

UAFRS

adjusted

return

assets

calculation

Other

examples

include

EPS’,

P/E’,

Assets’,

Margins’,

Earnings’,

and

forth

Page

Materials

Performance & Valuation

Prime:

Constant Currency Asset Adjustment

CEMEX, S.A.B. de C.V.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

8.1%

5.9%

6.0%

1.1%

3.6%

5.3%

-0.5%

3.7%

4.2%

5.9%

Unadjusted ROA'

8.5%

7.2%

7.8%

2.1%

4.4%

4.8%

0.2%

4.2%

5.1%

7.0%

Variance

-0.4%

-1.3%

-1.8%

-1.0%

-0.8%

0.4%

-0.7%

-0.4%

-1.0%

-1.1%

Hecla Mining Co.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

-8.3%

-0.3%

7.8%

-4.2%

0.9%

3.6%

4.3%

0.4%

-0.4%

1.0%

Unadjusted ROA'

-8.5%

2.5%

14.4%

-3.3%

4.1%

8.0%

8.4%

2.3%

1.3%

3.4%

Variance

0.2%

-2.8%

-6.5%

-0.8%

-3.2%

-4.3%

-4.1%

-2.0%

-1.7%

-2.4%

CF Industries Holdings, Inc.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

-2.4%

-0.9%

11.2%

22.5%

12.0%

12.6%

32.5%

31.4%

23.8%

12.8%

Unadjusted ROA'

0.3%

2.8%

21.5%

33.2%

18.4%

15.2%

37.2%

35.4%

26.0%

14.5%

Variance

-2.6%

-3.7%

-10.3%

-10.7%

-6.4%

-2.6%

-4.7%

-3.9%

-2.2%

-1.7%

Clearwater Paper Corporation

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

0.0%

-4.3%

-0.5%

-1.2%

3.3%

0.9%

1.1%

1.6%

2.8%

4.0%

Unadjusted ROA'

0.0%

-2.2%

3.0%

1.5%

7.0%

3.6%

3.8%

4.6%

5.8%

7.2%

Variance

0.0%

-2.1%

-3.5%

-2.6%

-3.7%

-2.7%

-2.8%

-3.0%

-2.9%

-3.3%

Eastman Chemical Co.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

2.5%

2.7%

3.0%

2.1%

2.5%

5.9%

7.2%

8.6%

5.4%

10.1%

Unadjusted ROA'

7.7%

7.3%

7.1%

5.7%

5.4%

9.2%

10.8%

12.5%

8.2%

14.1%

Variance

-5.2%

-4.6%

-4.2%

-3.6%

-3.0%

-3.3%

-3.5%

-3.9%

-2.8%

-4.0%

Freeport-McMoRan Inc.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

17.0%

25.3%

18.0%

48.5%

20.1%

27.9%

24.6%

13.8%

8.6%

9.9%

Unadjusted ROA'

25.8%

36.1%

19.9%

54.1%

22.3%

30.7%

27.3%

15.6%

9.6%

11.5%

Variance

-8.8%

-10.7%

-2.0%

-5.6%

-2.3%

-2.8%

-2.7%

-1.8%

-1.0%

-1.6%

Deltic Timber Corporation

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

3.0%

1.6%

2.6%

0.8%

-0.9%

2.5%

0.9%

2.2%

3.5%

3.1%

Unadjusted ROA'

6.6%

4.3%

5.6%

2.5%

0.1%

4.1%

2.3%

3.9%

6.1%

5.3%

Variance

-3.7%

-2.7%

-3.0%

-1.7%

-1.0%

-1.6%

-1.4%

-1.7%

-2.6%

-2.1%

Materion Corporation

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

0.9%

3.4%

3.7%

2.8%

-1.1%

4.9%

5.2%

1.1%

2.3%

2.5%

Unadjusted ROA'

4.4%

7.4%

7.3%

5.7%

0.2%

7.0%

7.3%

3.0%

4.6%

4.8%

Variance

-3.5%

-4.0%

-3.6%

-2.9%

-1.3%

-2.1%

-2.0%

-1.8%

-2.3%

United States Steel Corp.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

5.2%

7.5%

4.5%

9.9%

-5.8%

-0.8%

2.0%

2.4%

4.4%

3.0%

Unadjusted ROA'

10.5%

13.5%

8.6%

15.0%

-5.6%

0.6%

3.8%

4.5%

7.0%

5.1%

Variance

-5.3%

-6.0%

-4.0%

-5.0%

-0.1%

-1.4%

-1.9%

-2.1%

-2.5%

-2.2%

AK Steel Holding Corporation

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

4.8%

5.1%

5.7%

17.6%

-1.2%

-1.6%

4.3%

-10.1%

0.3%

0.0%

Unadjusted ROA'

8.1%

8.5%

9.4%

24.3%

0.1%

-0.4%

7.0%

-11.7%

2.3%

1.6%

Variance

-3.3%

-3.4%

-3.7%

-6.7%

-1.3%

-1.2%

-2.6%

1.6%

-1.9%

-1.6%

Note

The

apostrophe

after

any

metric,

such

ROA’,

denotes

that

has

been

adjusted

using

UAFRS

adjusted

financial

data

instead

reported

financial

information

ROA’

UAFRS

adjusted

return

assets

calculation

Other

examples

include

EPS’,

P/E’,

Assets’,

Margins’,

Earnings’,

and

forth

Page

Information

Technology

Performance & Valuation

Prime:

Constant Currency Asset Adjustment

Cass Information Systems, Inc.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

-57.9%

88.4%

-26.5%

-50.7%

-29.1%

-18.0%

-8.4%

-12.9%

-15.0%

-9.6%

Unadjusted ROA'

0.0%

39.2%

-31.5%

-74.3%

-32.0%

-17.7%

-7.7%

-13.2%

-15.6%

-9.5%

Variance

-57.9%

49.2%

5.1%

23.5%

2.9%

-0.3%

-0.7%

0.2%

0.6%

-0.1%

Integrated Device Technology, Inc.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

4.1%

8.4%

7.3%

4.1%

0.1%

3.1%

0.6%

1.2%

2.8%

9.4%

Unadjusted ROA'

8.0%

14.9%

13.9%

7.1%

1.5%

6.4%

3.1%

3.5%

4.6%

11.2%

Variance

-3.9%

-6.5%

-6.6%

-3.0%

-1.4%

-3.2%

-2.5%

-2.3%

-1.8%

Park Electrochemical Corp.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

9.1%

11.9%

9.7%

5.8%

9.6%

13.2%

8.0%

6.4%

-13.5%

6.5%

Unadjusted ROA'

14.1%

17.3%

14.1%

8.3%

12.3%

17.3%

11.3%

9.8%

-17.6%

12.0%

Variance

-5.0%

-5.4%

-4.4%

-2.5%

-2.8%

-4.1%

-3.4%

-3.3%

4.2%

-5.6%

Sanmina Corporation

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

-3.1%

-0.9%

1.7%

2.7%

0.7%

2.5%

4.4%

3.3%

6.0%

Unadjusted ROA'

-1.8%

2.4%

4.9%

5.1%

2.1%

4.3%

6.2%

4.9%

8.0%

Variance

-1.3%

-3.3%

-3.2%

-2.4%

-1.4%

-1.9%

-1.7%

-1.8%

-1.6%

-1.9%

Cypress Semiconductor Corporation

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

1.2%

1.9%

-0.9%

-4.5%

0.3%

5.9%

11.5%

3.5%

3.1%

3.0%

Unadjusted ROA'

3.4%

3.9%

0.0%

-3.2%

2.3%

9.1%

16.8%

6.1%

5.6%

5.7%

Variance

-2.2%

-1.9%

-0.9%

-1.3%

-2.0%

-3.2%

-5.3%

-2.6%

-2.5%

-2.7%

EarthLink Holdings Corp.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

14.9%

12.5%

33.3%

63.0%

39.8%

19.3%

24.7%

16.4%

-16.5%

10.5%

Unadjusted ROA'

26.8%

21.1%

46.4%

79.0%

46.3%

21.8%

27.5%

17.8%

-16.0%

12.3%

Variance

-11.8%

-8.6%

-13.1%

-16.1%

-6.5%

-2.5%

-2.8%

-1.4%

-0.5%

-1.8%

Fairchild Semiconductor International Inc.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

-7.8%

5.0%

4.7%

1.1%

4.9%

3.9%

2.3%

1.2%

1.3%

Unadjusted ROA'

-6.9%

8.2%

7.6%

7.3%

2.6%

8.2%

7.0%

4.4%

2.7%

Variance

-0.9%

-3.2%

-2.9%

-2.6%

-1.5%

-3.3%

-3.1%

-2.1%

-1.5%

Atmel Corporation

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

0.2%

0.0%

-2.3%

0.5%

-1.7%

8.3%

10.6%

4.1%

3.0%

3.4%

Unadjusted ROA'

2.4%

-0.3%

2.6%

-0.7%

10.8%

13.5%

6.0%

4.5%

5.1%

Variance

-2.2%

-2.3%

-2.0%

-2.1%

-1.0%

-2.5%

-2.9%

-1.8%

-1.6%

DST Systems Inc.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

15.1%

7.3%

7.6%

9.7%

11.7%

15.0%

9.8%

7.3%

10.8%

9.4%

Unadjusted ROA'

18.6%

10.9%

11.2%

14.0%

15.6%

19.8%

13.1%

10.2%

14.5%

12.8%

Variance

-3.6%

-3.7%

-3.6%

-4.3%

-3.9%

-4.7%

-3.3%

-2.9%

-3.7%

-3.4%

Rambus Inc.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

18.0%

23.5%

14.4%

-20.2%

-2.8%

21.3%

21.5%

6.0%

9.0%

9.2%

Unadjusted ROA'

18.9%

24.6%

15.4%

-19.6%

-1.8%

22.5%

22.9%

7.2%

9.9%

10.2%

Variance

-0.9%

-1.2%

-1.0%

-0.6%

-1.0%

-1.2%

-1.4%

-1.2%

-1.0%

-1.1%

Note

The

apostrophe

after

any

metric,

such

ROA’,

denotes

that

has

been

adjusted

using

UAFRS

adjusted

financial

data

instead

reported

financial

information

ROA’

UAFRS

adjusted

return

assets

calculation

Other

examples

include

EPS’,

P/E’,

Assets’,

Margins’,

Earnings’,

and

forth

Page

Telecommunication

Services

Performance & Valuation

Prime:

Constant Currency Asset Adjustment

Frontier Communications Corporation

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

7.8%

6.5%

6.9%

6.6%

6.4%

6.1%

5.9%

6.1%

4.0%

Unadjusted ROA'

12.6%

11.6%

11.5%

10.2%

9.8%

9.3%

9.0%

9.2%

6.7%

Variance

-4.9%

-5.1%

-4.7%

-3.6%

-3.4%

-3.1%

-3.2%

-2.7%

Windstream Holdings, Inc.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

3.8%

6.4%

8.2%

7.0%

7.1%

7.6%

8.1%

9.6%

6.4%

7.1%

Unadjusted ROA'

8.6%

11.5%

14.4%

12.2%

11.4%

11.3%

11.7%

13.6%

9.3%

10.2%

Variance

-4.8%

-5.2%

-6.2%

-5.2%

-4.2%

-3.7%

-3.6%

-4.0%

-2.9%

-3.1%

Cincinnati Bell Inc.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

7.6%

4.2%

5.2%

5.7%

4.9%

3.4%

3.8%

2.3%

6.6%

3.0%

Unadjusted ROA'

12.1%

7.8%

9.4%

9.7%

7.8%

5.6%

6.2%

4.5%

9.6%

5.6%

Variance

-4.5%

-3.6%

-4.2%

-4.0%

-2.9%

-2.2%

-2.4%

-2.1%

-3.0%

-2.6%

Consolidated Communications Holdings Inc.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

7.3%

9.6%

2.6%

4.3%

5.4%

6.0%

4.5%

-2.7%

1.0%

0.1%

Unadjusted ROA'

12.2%

15.5%

6.1%

8.1%

8.7%

9.2%

7.7%

-1.0%

3.4%

2.3%

Variance

-4.9%

-5.9%

-3.5%

-3.8%

-3.3%

-3.2%

-1.7%

-2.5%

-2.1%

AT&T, Inc.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

1.2%

1.6%

9.2%

11.4%

7.1%

8.6%

5.6%

6.2%

3.6%

4.5%

Unadjusted ROA'

4.8%

4.5%

13.7%

14.8%

9.3%

10.9%

7.8%

8.5%

5.4%

6.3%

Variance

-3.6%

-2.9%

-4.5%

-3.4%

-2.2%

-2.3%

-2.2%

-2.3%

-1.8%

CenturyLink, Inc.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

4.9%

4.2%

4.7%

4.0%

9.5%

13.2%

11.4%

10.5%

10.8%

7.9%

Unadjusted ROA'

8.9%

8.5%

9.2%

8.4%

12.3%

16.2%

14.7%

13.9%

10.6%

Variance

-4.0%

-4.3%

-4.4%

-4.3%

-2.7%

-3.0%

-3.3%

-3.4%

-3.1%

-2.7%

Verizon Communications Inc.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

3.7%

4.3%

4.5%

13.5%

7.5%

8.1%

7.6%

9.0%

8.2%

Unadjusted ROA'

6.8%

7.4%

7.5%

17.5%

9.8%

10.1%

9.5%

10.9%

10.1%

Variance

-3.1%

-4.0%

-2.3%

-2.0%

-1.9%

-2.0%

-1.9%

Level 3 Communications, Inc.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

-2.5%

-0.8%

-0.2%

1.4%

-0.2%

0.6%

-0.6%

4.3%

5.2%

5.1%

Unadjusted ROA'

-1.0%

0.8%

1.6%

3.4%

1.3%

2.2%

0.6%

6.2%

7.4%

7.9%

Variance

-1.5%

-1.6%

-1.8%

-2.0%

-1.5%

-1.6%

-1.2%

-1.9%

-2.2%

-2.9%

Telephone & Data Systems Inc.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

7.3%

-0.9%

1.9%

3.0%

2.3%

1.2%

0.1%

-2.2%

-2.8%

Unadjusted ROA'

10.3%

1.7%

5.2%

5.8%

4.3%

3.0%

1.7%

-0.9%

-1.6%

Variance

-3.0%

-2.6%

-3.4%

-2.8%

-2.0%

-1.8%

-1.6%

-1.4%

-1.2%

SBA Communications Corp.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Constant Currency Adjusted ROA'

-0.4%

1.6%

3.6%

4.5%

6.7%

7.6%

8.6%

9.5%

9.9%

10.8%

Unadjusted ROA'

1.1%

3.3%

5.4%

6.3%

8.2%

9.2%

10.4%

11.3%

11.6%

13.1%

Variance

-1.4%

-1.7%

-1.8%

-1.6%

-1.7%

-1.8%

-1.9%

-1.6%

-2.3%

Note

The

apostrophe

after

any

metric,

such

ROA’,

denotes

that

has

been

adjusted

using

UAFRS

adjusted

financial

data

instead

reported

financial

information

ROA’

UAFRS

adjusted

return

assets

calculation

Other

examples

include

EPS’,

P/E’,

Assets’,

Margins’,

Earnings’,

and

forth

info@valens

securities.com

■

TEL

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646) 491

2601

■

www.valens

securities.com

2014

, Valens Securities.

Please refer

the last page.

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Chief Investment Strategist

joel.litman@valens

securities.com

+1 (646) 491 2601

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Valens Research, Valens Research

Buying Inexpensive, High Quality, Growing Firms: A History Of Outperformance When Using Uniform Accounting-Based ...

Valens Research would like to share with you the Litman Letter for May 2017, which discusses how applying UAFRS metrics to a simple screen that many investors likely run on as-reported metrics can create substantial market outperformance. What ...

Jun 06, 2017

Valens Research, Valens Research

There’s going to be a market correction soon… just be sure to buy it

From the election until the middle of December, the US equity markets rallied materially, as pent up demand for equities was unleashed. Hopefulness that the new administration’s policies would help facilitate growth if enacted helped adjust ...

Jan 24, 2017

Valens Research, Valens Research

Less Discussed Reasons Why Trump, Congress, and DCF Mean A Sideways-to-Upward Stock Market

Valens Research would like to share with you the Litman Letter for November 2016, which discusses how the surprise US election results earlier this month could spell continued upside potential for the market, even after the post-election run. ...

Nov 30, 2016