Celestica Announces Third Quarter 2015 Financial Results

October 20, 2015

(All amounts in U.S. dollars.
Per share information based on diluted
shares outstanding unless otherwise noted.)

TORONTO, Oct. 20, 2015 /PRNewswire/ - Celestica Inc. (NYSE, TSX: CLS), a global leader in the delivery of end-to-end product lifecycle solutions, today announced financial results for the third quarter ended September 30, 2015.

Third Quarter 2015 Highlights

Revenue: $1.41 billion, within our guidance range of $1.4 billion to $1.5 billion (announced July 23, 2015), relatively flat compared to the third quarter of 2014
Revenue from our diversified end market represented 30% of total revenue, compared to 29% for the third quarter of 2014
Operating margin (non-IFRS): 3.8%, compared to 3.9% for the third quarter of 2014
Adjusted EPS (non-IFRS): $0.22 per share ($0.30 per share had we excluded an $0.08 per share income tax expense resulting from taxable foreign exchange impacts), compared to $0.26 per share for the third quarter of 2014. Had we excluded this income tax expense of $0.08 per share, adjusted EPS (non-IFRS) would have been within our guidance range of $0.28 to $0.34 per share (announced July 23, 2015).
IFRS EPS: $0.08 per share (negatively impacted by the $0.08 per share income tax expense discussed above), compared to $0.19 per share for the third quarter of 2014
ROIC (non-IFRS): 20.9%, compared to 21.3% for the third quarter of 2014
Free cash flow (non-IFRS): $12.8 million, compared to $92.7 million for the third quarter of 2014

"Despite a challenging end market environment, Celestica delivered higher operating margin and return on invested capital compared to the second quarter of this year, based on our ongoing focus on continuous improvement and disciplined cost management," said Robert Mionis, Celestica's President and Chief Executive Officer.

"Overall, we remain focused on our strategic objectives of expanding our business into more profitable markets leveraging our leadership in higher reliability applications, as well as driving continued improvements across our entire business in the areas of quality, profitability and free cash flow generation."

Third Quarter and Year-to-Date Summary

	Three months ended September 30						Nine months ended September 30
	2014			2015			2014			2015
Revenue (in millions)...........................................................................	$	1,423.1		$	1,408.5		$	4,207.0		$	4,124.3

IFRS net earnings (in millions)⁽ⁱ⁾.......................................................	$	34.4		$	10.9		$	112.6		$	54.8
IFRS EPS ⁽ⁱ⁾............................................................................................	$	0.19		$	0.08		$	0.62		$	0.34

Adjusted net earnings (non-IFRS) (in millions) ^{(i) (ii)}......................	$	47.2		$	31.4		$	139.2		$	106.1
Adjusted EPS (non-IFRS)^{(i) (ii)}.............................................................	$	0.26		$	0.22		$	0.77		$	0.65
Non-IFRS return on invested capital (ROIC)⁽ⁱⁱ⁾................................	21.3		%	20.9		%	19.0		%	19.1		%
Non-IFRS operating margin⁽ⁱⁱ⁾............................................................	3.9		%	3.8		%	3.5		%	3.4		%

i.	International Financial Reporting Standards (IFRS) EPS and adjusted EPS (non-IFRS) for the three and nine months ended September 30, 2015, respectively, reflect an $0.08 per share income tax expense related to taxable foreign exchange impacts arising from the weakening of the Malaysian ringgit and Chinese renminbi relative to the U.S. dollar, $0.04 of which were deferred tax costs related to period-end revaluations of non-monetary balance sheet items. See note 11 to our September 30, 2015 unaudited interim condensed consolidated financial statements. IFRS EPS for the third quarter of 2015 included an aggregate charge of $0.15 (pre-tax) per share for employee stock-based compensation expense, amortization of intangible assets (excluding computer software) and restructuring charges. This aggregate charge is within the range we provided on July 23, 2015 of an aggregate charge of between $0.10 and $0.16 per share for these items (see the tables in Schedule 1 attached hereto for per-item charges).

ii.	Non-IFRS measures do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other public companies that use IFRS or other generally accepted accounting principles (GAAP). See "Non-IFRS Supplementary Information" below for information on our rationale for the use of non-IFRS measures, and Schedule 1 for, among other items, non-IFRS measures included in this press release, as well as their definitions, uses, and a reconciliation of non-IFRS to IFRS measures (where a comparable IFRS measure exists).

End Markets by Quarter as a Percentage of Total Revenue

	2014					2015
	Q1	Q2	Q3	Q4	FY	Q1	Q2	Q3
Communications...................................................	40%	40%	40%	40%	40%	40%	40%	41%
Consumer...............................................................	6%	5%	5%	3%	5%	3%	3%	3%
Diversified⁽ⁱ⁾.............................................................	28%	28%	29%	27%	28%	28%	28%	30%
Servers.....................................................................	10%	10%	9%	10%	9%	11%	10%	8%
Storage.....................................................................	16%	17%	17%	20%	18%	18%	19%	18%
Revenue (in billions)..............................................	$1.31	$1.47	$1.42	$1.42	$5.63	$1.30	$1.42	$1.41

i.	Our diversified end market is comprised of aerospace and defense, industrial, healthcare, energy, and semiconductor equipment.

Fourth Quarter 2015 Outlook

For the fourth quarter ending December 31, 2015, we anticipate revenue to be in the range of $1.375 billion to $1.475 billion, and non-IFRS adjusted net earnings per share to be in the range of $0.27 to $0.33. We expect a negative $0.06 to $0.12 per share (pre-tax) aggregate impact on net earnings on an IFRS basis for employee stock-based compensation expense and amortization of intangible assets (excluding computer software).

Third Quarter 2015 Webcast

Management will host its third quarter 2015 results conference call today at 5:00 p.m. Eastern Daylight Time. The webcast can be accessed at www.celestica.com.

Non-IFRS Supplementary Information

In addition to disclosing detailed operating results in accordance with IFRS, Celestica provides supplementary non-IFRS measures to consider in evaluating the company's operating performance. Management uses adjusted net earnings and other non-IFRS measures to assess operating performance and the effective use and allocation of resources; to provide more meaningful period-to-period comparisons of operating results; to enhance investors' understanding of the core operating results of Celestica's business; and to set management incentive targets. We believe investors use both IFRS and non-IFRS measures to assess past, current and future decisions associated with our priorities and our allocation of capital, as well as to analyze how our business operates in, or responds to, swings in economic cycles or to other events that impact our core operations. See Schedule 1 - Supplementary Non-IFRS Measures for, among other items, non-IFRS measures provided herein, non-IFRS definitions, and a reconciliation of non-IFRS to IFRS measures (where a comparable IFRS measure exists).

About Celestica

Celestica is dedicated to delivering end-to-end product lifecycle solutions to drive our customers' success. Through our simplified global operations network and information technology platform, we are solid partners who deliver informed, flexible solutions that enable our customers to succeed in the markets they serve. Committed to providing a truly differentiated customer experience, our agile and adaptive employees share a proud history of demonstrated expertise and creativity that provides our customers with the ability to overcome complex challenges. For further information about Celestica, visit our website at www.celestica.com. Our securities filings can also be accessed at www.sedar.com and www.sec.gov.

Cautionary Note Regarding Forward-looking Statements

This news release contains forward-looking statements related to our future growth; trends in the electronics manufacturing services (EMS) industry; our financial or operational results including our quarterly revenue and earnings guidance; the impact of acquisitions and program wins or losses on our financial results and working capital requirements; anticipated expenses, restructuring actions and charges, capital expenditures and/or benefits; our expected tax and litigation outcomes; our cash flows, financial targets and priorities; changes in our mix of revenue by end market; our ability to diversify and grow our customer base and develop new capabilities; the effect of the global economic environment on customer demand; expected investments in our solar business, the expected timing of ramping our solar programs in Asia, and the timing and extent of expected recovery of cash advances to a particular solar cell supplier; the impact of the financing of the SIB (as defined herein), including the impact of the Term Loan (as defined herein), on our liquidity, future operations and financial condition; the timing and terms of the sale of our real property in Toronto and related transactions, including the expected lease of our corporate head office (collectively, the "Toronto Real Property Transactions"); and, if the Toronto Real Property Transactions are completed, our ability to secure on commercially acceptable terms an alternate site for our existing Toronto manufacturing operations and the expected transition costs for such relocation. Such forward-looking statements may, without limitation, be preceded by, followed by, or include words such as "believes", "expects", "anticipates", "estimates", "intends", "plans", "continues", "project", "potential", "possible", "contemplate", "seek", or similar expressions, or may employ such future or conditional verbs as "may", "might", "will", "could", "should" or "would", or may otherwise be indicated as forward-looking statements by grammatical construction, phrasing or context. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the U.S. Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws.

Forward-looking statements are provided for the purpose of assisting readers in understanding management's current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. Forward-looking statements are not guarantees of future performance and are subject to risks that could cause actual results to differ materially from conclusions, forecasts or projections expressed in such statements, including, among others, risks related to: our customers' ability to compete and succeed in the marketplace with the services we provide and the products we manufacture; price and other competitive factors generally affecting the EMS industry; managing our operations and our working capital performance during uncertain market and economic conditions; responding to changes in demand, rapidly evolving and changing technologies, and changes in our customers' business and outsourcing strategies, including the insourcing of programs; customer concentration and the challenges of diversifying our customer base and replacing revenue from completed or lost programs, or customer disengagements; changing commodity, material and component costs, as well as labor costs and conditions; disruptions to our operations, or those of our customers, component suppliers or logistics partners, including as a result of global or local events outside our control; retaining or expanding our business due to execution problems relating to the ramping of new programs or new offerings; the incurrence of future impairment charges; recruiting or retaining skilled personnel; current or future litigation and/or governmental actions; successfully resolving commercial and operational challenges, and improving financial results, in our semiconductor business; delays in the delivery and availability of components, services and materials; non-performance by counterparties; our financial exposure to foreign currency volatility; our dependence on industries affected by rapid technological change; the variability of revenue and operating results; managing our global operations and supply chain; increasing income taxes, tax audits, and defending our tax positions or meeting the conditions of tax incentives and credits; completing restructuring actions, including achieving the anticipated benefits therefrom, and integrating any acquisitions; computer viruses, malware, hacking attempts or outages that may disrupt our operations; any failure to adequately protect our intellectual property or the intellectual property of others; compliance with applicable laws, regulations and social responsibility initiatives; our having sufficient financial resources and working capital following completion of the SIB and consummation of the Term Loan to fund currently anticipated financial obligations and to pursue desirable business opportunities; the potential that conditions to closing the Toronto Real Property Transactions may not be satisfied on a timely basis or at all; and, if the Toronto Real Property Transactions are completed, our ability to secure on commercially acceptable terms an alternate site for our existing Toronto manufacturing operations, and the costs, timing and/or execution of such relocation proving to be other than anticipated. The foregoing and other material risks and uncertainties are discussed in our public filings at www.sedar.com and www.sec.gov, including in our MD&A, our Annual Report on Form 20-F filed with, and subsequent reports on Form 6-K furnished to, the U.S. Securities and Exchange Commission, and our Annual Information Form filed with the Canadian Securities Administrators.

Our revenue, earnings and other financial guidance, as contained in this press release, are based on various assumptions, many of which involve factors that are beyond our control. The material assumptions include those related to the following: production schedules from our customers, which generally range from 30 to 90 days and can fluctuate significantly in terms of volume and mix of products or services; the timing and execution of, and investments associated with, ramping new business; the success in the marketplace of our customers' products; the stability of general economic and market conditions, currency exchange rates, and interest rates; our pricing, the competitive environment and contract terms and conditions; supplier performance, pricing and terms; compliance by third parties with their contractual obligations, the accuracy of their representations and warranties, and the performance of their covenants; the costs and availability of components, materials, services, plant and capital equipment, labor, energy and transportation; operational and financial matters including the extent, timing and costs of replacing revenue from completed or lost programs, or customer disengagements; technological developments; overall demand improvement in the semiconductor industry, revenue growth and improved financial results in our semiconductor business; the timing, execution and effect of restructuring actions; our having sufficient financial resources and working capital following completion of the SIB and consummation of the Term Loan to fund our currently anticipated financial obligations and to pursue desirable business opportunities; and our ability to diversify our customer base and develop new capabilities. While management believes these assumptions to be reasonable under the current circumstances, they may prove to be inaccurate. Except as required by applicable law, forward-looking statements speak only as of the date on which they are made and we disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

All forward-looking statements attributable to us are expressly qualified by these cautionary statements.

Schedule 1

Supplementary Non-IFRS Measures

Our non-IFRS measures herein include adjusted gross profit, adjusted gross margin (adjusted gross profit as a percentage of revenue), adjusted selling, general and administrative expenses (SG&A), adjusted SG&A as a percentage of revenue, operating earnings (adjusted EBIAT), operating margin (adjusted EBIAT as a percentage of revenue), adjusted net earnings, adjusted net earnings per share, net invested capital, return on invested capital (ROIC), and free cash flow. Adjusted EBIAT, net invested capital, ROIC and free cash flow are further described in the tables below. In calculating these non-IFRS financial measures, management excludes the following items, where applicable: employee stock-based compensation expense, amortization of intangible assets (excluding computer software), restructuring and other charges, net of recoveries (most significantly restructuring charges), the write-down of goodwill, intangible assets and property, plant and equipment, and gains or losses related to the repurchase of shares or debt, net of tax adjustments and significant deferred tax write-offs or recoveries associated with restructuring actions or restructured sites.

We believe the non-IFRS measures we present herein are useful, as they enable investors to evaluate and compare our results from operations and cash resources generated from our business in a more consistent manner (by excluding specific items that we do not consider to be reflective of our ongoing operating results) and provide an analysis of operating results using the same measures our chief operating decision makers use to measure performance. The non-IFRS financial measures that can be reconciled to IFRS measures result largely from management's determination that the facts and circumstances surrounding the excluded charges or recoveries are not indicative of the ordinary course of our ongoing operation of our business.

Non-IFRS measures do not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other public companies that use IFRS, or who report under U.S. GAAP and use non-U.S. GAAP measures to describe similar operating metrics. Non-IFRS measures are not measures of performance under IFRS and should not be considered in isolation or as a substitute for any standardized measure under IFRS. The most significant limitation to management's use of non-IFRS financial measures is that the charges or credits excluded from the non-IFRS measures are nonetheless charges or credits that are recognized under IFRS and that have an economic impact on the company. Management compensates for these limitations primarily by issuing IFRS results to show a complete picture of the company's performance, and reconciling non-IFRS results back to IFRS results where a comparable IFRS measure exists.

The economic substance of these exclusions and management's rationale for excluding them from non-IFRS financial measures is provided below:

Employee stock-based compensation expense, which represents the estimated fair value of stock options, restricted share units and performance share units granted to employees, is excluded because grant activities vary significantly from quarter-to-quarter in both quantity and fair value. In addition, excluding this expense allows us to better compare core operating results with those of our competitors who also generally exclude employee stock-based compensation expense from their core operating results, who may have different granting patterns and types of equity awards, and who may use different valuation assumptions than we do, including those competitors who use U.S. GAAP and non-U.S. GAAP measures to present similar metrics.

Amortization charges (excluding computer software) consist of non-cash charges against intangible assets that are impacted by the timing and magnitude of acquired businesses. Amortization of intangible assets varies among our competitors, and we believe that excluding these charges permits a better comparison of core operating results with those of our competitors who also generally exclude amortization charges.

Restructuring and other charges, net of recoveries, include costs relating to employee severance, lease terminations, site closings and consolidations, write-downs of owned property and equipment which are no longer used and are available for sale, reductions in infrastructure and acquisition-related transaction costs. We exclude restructuring and other charges, net of recoveries, because we believe that they are not directly related to ongoing operating results and do not reflect expected future operating expenses after completion of these activities. We believe these exclusions permit a better comparison of our core operating results with those of our competitors who also generally exclude these charges, net of recoveries, in assessing operating performance.

Impairment charges, which consist of non-cash charges against goodwill, intangible assets and property, plant and equipment, result primarily when the carrying value of these assets exceeds their recoverable amount. Our competitors may record impairment charges at different times. We believe that excluding these charges permits a better comparison of our core operating results with those of our competitors who also generally exclude these charges in assessing operating performance.

Gains or losses related to the repurchase of shares or debt are excluded, as we believe that these gains or losses do not reflect core operating performance and vary significantly among those of our competitors who also generally exclude these charges or recoveries in assessing operating performance.

Significant deferred tax write-offs or recoveries associated with restructuring actions or restructured sites are excluded, as we believe that these write-offs or recoveries do not reflect core operating performance and vary significantly among those of our competitors who also generally exclude these charges or recoveries in assessing operating performance.

The following table sets forth, for the periods indicated, the various non-IFRS measures discussed above, and a reconciliation of IFRS to non-IFRS measures, where a comparable IFRS measure exists (in millions, except percentages and per share amounts):

		Three months ended September 30						Nine months ended September 30
		2014			2015			2014			2015
				% of revenue			% of revenue			% of revenue			% of revenue
IFRS revenue......................................................................		$	1,423.1		$	1,408.5		$	4,207.0		$	4,124.3

IFRS gross profit...............................................................		$	105.6	7.4%	$	101.1	7.2%	$	300.9	7.2%	$	289.8	7.0%
	Employee stock-based compensation expense.....................................................................		3.1			4.6			10.4			12.0
Non-IFRS adjusted gross profit.....................................		$	108.7	7.6%	$	105.7	7.5%	$	311.3	7.4%	$	301.8	7.3%

IFRS SG&A..........................................................................		$	48.8	3.4%	$	50.2	3.6%	$	157.4	3.7%	$	155.7	3.8%
	Employee stock-based compensation expense.....................................................................		(2.1)			(3.6)			(12.1)			(14.8)
Non-IFRS adjusted SG&A................................................		$	46.7	3.3%	$	46.6	3.3%	$	145.3	3.5%	$	140.9	3.4%

IFRS earnings before income taxes.............................		$	42.2		$	29.3		$	118.9		$	85.3
	Finance costs............................................................		0.7			2.1			2.1			3.7
	Employee stock-based compensation expense......................................................................		5.2			8.2			22.5			26.8
	Amortization of intangible assets (excluding computer software)..............................		1.6			1.5			4.8			4.5
	Restructuring and other charges (recoveries)....		6.1			11.9			(0.3)			21.5
Non-IFRS operating earnings (adjusted EBIAT) (1)............................................................................		$	55.8	3.9%	$	53.0	3.8%	$	148.0	3.5%	$	141.8	3.4%

IFRS net earnings.............................................................		$	34.4	2.4%	$	10.9	0.8%	$	112.6	2.7%	$	54.8	1.3%
	Employee stock-based compensation expense......................................................................		5.2			8.2			22.5			26.8
	Amortization of intangible assets (excluding computer software)..................................................		1.6			1.5			4.8			4.5
	Restructuring and other charges (recoveries)....		6.1			11.9			(0.3)			21.5
	Adjustments for taxes (2)........................................		(0.1)			(1.1)			(0.4)			(1.5)
Non-IFRS adjusted net earnings....................................		$	47.2		$	31.4		$	139.2		$	106.1

Diluted EPS
	Weighted average # of shares (in millions)........		179.6			145.3			181.3			162.1
	IFRS earnings per share........................................	$	0.19		$	0.08		$	0.62		$	0.34
	Non-IFRS adjusted net earnings per share........	$	0.26		$	0.22		$	0.77		$	0.65
# of shares outstanding at period end (in millions)....		176.7			143.0			176.7			143.0

IFRS cash provided by operations................................		$	103.1		$	24.8		$	163.5		$	104.3
	Purchase of property, plant and equipment, net of sales proceeds..............................................		(9.6)			(13.8)			(44.1)			(44.6)
	Deposit on anticipated sale of real property.......		—			11.2			—			11.2
	Advances to solar supplier....................................		—			(7.3)			—			(28.3)
	Finance costs paid..................................................		(0.8)			(2.1)			(2.0)			(5.4)
Non-IFRS free cash flow (3)...........................................		$	92.7		$	12.8		$	117.4		$	37.2

Non-IFRS ROIC % (4).........................................................		21.3%			20.9%			19.0%			19.1%

(1)	Management uses non-IFRS operating earnings (adjusted EBIAT) as a measure to assess our operational performance related to our core operations. Non-IFRS adjusted EBIAT is defined as earnings before finance costs (consisting of interest and fees related to our credit facilities and accounts receivable sales program), amortization of intangible assets (excluding computer software) and income taxes. Non-IFRS adjusted EBIAT also excludes, in periods where such charges have been recorded, employee stock-based compensation expense, restructuring and other charges (net of recoveries), gains or losses related to the repurchase of shares or debt, and impairment charges.

(2)	The adjustments for taxes, as applicable, represent the tax effects on the non-IFRS adjustments and significant deferred tax write-offs or recoveries associated with restructuring actions or restructured sites that management considers not to be reflective of our core operating performance.

(3)	Management uses non-IFRS free cash flow as a measure, in addition to IFRS cash flow from operations, to assess our operational cash flow performance. We believe non-IFRS free cash flow provides another level of transparency to our liquidity. Non-IFRS free cash flow is defined as cash provided by or used in operating activities after the purchase of property, plant and equipment (net of proceeds from the sale of certain surplus equipment and property), advances to a solar supplier for its capital expenditures, and finance costs paid. Non-IFRS free cash flow also includes the cash deposit we received in the third quarter of 2015 upon execution of the agreement to sell our Toronto real property (see note 7 to our September 30, 2015 unaudited interim condensed consolidated financial statements).

(4)	Management uses non-IFRS ROIC as a measure to assess the effectiveness of the invested capital we use to build products or provide services to our customers, by quantifying how well we generate earnings relative to the capital we have invested in our business. Our non-IFRS ROIC measure reflects non-IFRS operating earnings, working capital management and asset utilization. Non-IFRS ROIC is calculated by dividing non-IFRS adjusted EBIAT by average non-IFRS net invested capital. Net invested capital (calculated in the table below) is a non-IFRS measure and consists of the following IFRS measures: total assets less cash, accounts payable, accrued and other current liabilities and provisions, and income taxes payable. We use a two-point average to calculate average non-IFRS net invested capital for the quarter and a four-point average to calculate average non-IFRS net invested capital for the nine-month period. There is no comparable measure under IFRS.

The following table sets forth, for the periods indicated, our calculation of non-IFRS ROIC % (in millions, except ROIC %):

	Three months ended September 30					Nine months ended September 30
	2014		2015			2014			2015
Non-IFRS operating earnings (adjusted EBIAT)..............................	$	55.8	$	53.0		$	148.0		$	141.8
Multiplier...................................................................................................	4		4			1.333			1.333
Annualized non-IFRS adjusted EBIAT................................................	$	223.2	$	212.0		$	197.3		$	189.0

Average non-IFRS net invested capital for the period.....................	$	1,046.7	$	1,014.1		$	1,036.2		$	989.5

Non-IFRS ROIC % (1)............................................................................	21.3%		20.9		%	19.0		%	19.1		%

	December 31 2014		March 31 2015			June 30 2015			September 30 2015
Non-IFRS net invested capital consists of:
Total assets..............................................................................................	$	2,583.6	$	2,579.3		$	2,624.7		$	2,603.6
Less: cash................................................................................................	565.0		569.2			496.8			495.7
Less: accounts payable, accrued and other current liabilities, provisions and income taxes payable.................................................	1,054.3		1,044.8			1,122.3			1,085.3
Non-IFRS net invested capital at period end (1)................................	$	964.3	$	965.3		$	1,005.6		$	1,022.6

	December 31 2013		March 31 2014			June 30 2014			September 30 2014
Non-IFRS net invested capital consists of:
Total assets..............................................................................................	$	2,638.9	$	2,590.7		$	2,673.3		$	2,666.3
Less: cash.................................................................................................	544.3		489.2			519.1			578.2
Less: accounts payable, accrued and other current liabilities, provisions and income taxes payable..................................................	1,109.2		1,035.7			1,077.2			1,071.7
Non-IFRS net invested capital at period end (1)................................	$	985.4	$	1,065.8		$	1,077.0		$	1,016.4

(1)

Management uses non-IFRS ROIC as a measure to assess the effectiveness of the invested capital we use to build products or provide services to our customers, by quantifying how well we generate earnings relative to the capital we have invested in our business. Our non-IFRS ROIC measure reflects non-IFRS operating earnings, working capital management and asset utilization. Non-IFRS ROIC is calculated by dividing non-IFRS adjusted EBIAT by average non-IFRS net invested capital. Net invested capital is a non-IFRS measure and consists of the following IFRS measures: total assets less cash, accounts payable, accrued and other current liabilities and provisions, and income taxes payable. We use a two-point average to calculate average non-IFRS net invested capital for the quarter and a four-point average to calculate average non-IFRS net invested capital for the nine-month period. There is no comparable measure under IFRS.

GUIDANCE SUMMARY

	Q3 2015 Guidance	Q3 2015 Actual⁽¹⁾	Q4 2015 Guidance ⁽²⁾
IFRS revenue (in billions)...................................................................	$1.4 to $1.5	$1.41	$1.375 to $1.475
Non-IFRS adjusted EPS (diluted) ⁽¹⁾................................................	$0.28 to $0.34	$0.22	$0.27 to $0.33

(1)	Our adjusted EPS (non-IFRS) for the third quarter of 2015 would have been $0.30 per share, within our guidance range, had we excluded an income tax expense of $0.08 per share resulting from taxable foreign exchange impacts (discussed above). See also note 11 to our September 30, 2015 unaudited interim condensed consolidated financial statements.

(2)	For the fourth quarter of 2015, we expect a negative $0.06 to $0.12 per share (pre-tax) aggregate impact on net earnings on an IFRS basis for employee stock-based compensation expense and amortization of intangible assets (excluding computer software).

CELESTICA INC.

CONDENSED CONSOLIDATED BALANCE SHEET
(in millions of U.S. dollars)
(unaudited)

		December 31 2014		September 30 2015
Assets
Current assets:
	Cash and cash equivalents (note 12).......................................................................................................	$	565.0	$	495.7
	Accounts receivable (note 5).......................................................................................................................		693.5		643.7
	Inventories (note 6).......................................................................................................................................		719.0		848.7
	Income taxes receivable..............................................................................................................................		11.4		12.3
	Assets classified as held-for-sale.............................................................................................................		28.3		27.6
	Other current assets (note 4)......................................................................................................................		87.0		63.8
Total current assets.............................................................................................................................................		2,104.2		2,091.8

Property, plant and equipment (note 7)............................................................................................................		312.4		324.6
Goodwill..................................................................................................................................................................		19.5		19.5
Intangible assets..................................................................................................................................................		35.2		31.7
Deferred income taxes........................................................................................................................................		37.3		44.5
Other non-current assets (note 4).....................................................................................................................		75.0		91.5
Total assets...........................................................................................................................................................		$	2,583.6	$	2,603.6

Liabilities and Equity
Current liabilities:
	Borrowings under revolving credit facilities (note 8)...............................................................................	$	—	$	25.0
	Current portion of long-term debt and finance lease obligations (notes 4 & 8)................................		—		27.8
	Accounts payable..........................................................................................................................................		730.9		767.5
	Accrued and other current liabilities..........................................................................................................		259.6		268.5
	Income taxes payable...................................................................................................................................		14.5		27.6
	Current portion of provisions.......................................................................................................................		49.3		21.7
Total current liabilities..........................................................................................................................................		1,054.3		1,138.1

Long-term debt and finance lease obligations (notes 4 & 8).......................................................................		—		231.2
Pension and non-pension post-employment benefit obligations...............................................................		99.2		87.8
Provisions and other non-current liabilities.....................................................................................................		18.1		28.7
Deferred income taxes.........................................................................................................................................		17.1		31.5
Total liabilities........................................................................................................................................................		1,188.7		1,517.3

Equity:
	Capital stock (note 9)....................................................................................................................................	2,609.5		2,089.4
	Treasury stock (note 9).................................................................................................................................	(21.4)		(13.6)
	Contributed surplus......................................................................................................................................	677.1		842.0
	Deficit...............................................................................................................................................................	(1,845.3)		(1,790.5)
	Accumulated other comprehensive loss..................................................................................................	(25.0)		(41.0)
Total equity.............................................................................................................................................................		1,394.9		1,086.3
Total liabilities and equity....................................................................................................................................		$	2,583.6	$	2,603.6

Contingencies (note 13)
The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.


CELESTICA INC.

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(in millions of U.S. dollars, except per share amounts)
(unaudited)

		Three months ended September 30				Nine months ended September 30
		2014		2015		2014		2015
Revenue.................................................................................................................		$	1,423.1	$	1,408.5	$	4,207.0	$	4,124.3
Cost of sales (note 6)..........................................................................................		1,317.5		1,307.4		3,906.1		3,834.5
Gross profit............................................................................................................		105.6		101.1		300.9		289.8
Selling, general and administrative expenses (SG&A).................................		48.8		50.2		157.4		155.7
Research and development...............................................................................		5.2		5.3		14.7		16.7
Amortization of intangible assets......................................................................		2.6		2.3		8.1		6.9
Other charges (recoveries) (note 10)...............................................................		6.1		11.9		(0.3)		21.5
Earnings from operations...................................................................................		42.9		31.4		121.0		89.0
Finance costs........................................................................................................		0.7		2.1		2.1		3.7
Earnings before income taxes...........................................................................		42.2		29.3		118.9		85.3
Income tax expense (recovery) (note 11):
	Current............................................................................................................	7.9		10.9		5.7		24.0
	Deferred..........................................................................................................	(0.1)		7.5		0.6		6.5
		7.8		18.4		6.3		30.5
Net earnings for the period.................................................................................		$	34.4	$	10.9	$	112.6	$	54.8

Basic earnings per share....................................................................................		$	0.19	$	0.08	$	0.63	$	0.34

Diluted earnings per share.................................................................................		$	0.19	$	0.08	$	0.62	$	0.34

Shares used in computing per share amounts (in millions):
	Basic................................................................................................................	177.5		143.0		179.3		160.1
	Diluted.............................................................................................................	179.6		145.3		181.3		162.1

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.


CELESTICA INC.

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS)
(in millions of U.S. dollars)
(unaudited)

			Three months ended September 30				Nine months ended September 30
			2014		2015		2014		2015
Net earnings for the period....................................................................................			$	34.4	$	10.9	$	112.6	$	54.8
Other comprehensive income (loss), net of tax:
	Items that will not be reclassified to net earnings:
		Actuarial gains on pension and non-pension post-employment benefit plans (note 10).............................................................................	2.3		—		2.3		—
	Items that may be reclassified to net earnings:
		Currency translation differences for foreign operations....................	(5.0)		0.4		(5.4)		(1.4)
		Changes from derivatives designated as hedges.............................	(4.2)		(14.9)		6.6		(14.6)
Total comprehensive income (loss) for the period............................................			$	27.5	$	(3.6)	$	116.1	$	38.8

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.


CELESTICA INC.

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(in millions of U.S. dollars)
(unaudited)

			Capital stock (note 9)		Treasury stock (note 9)		Contributed surplus		Deficit		Accumulated other comprehensive income (loss) (a)		Total equity
Balance -- January 1, 2014................................................			$	2,712.0	$	(12.0)	$	681.7	$	(1,965.4)	$	(14.3)	$	1,402.0
Capital transactions (note 9):
	Issuance of capital stock............................................		17.2		—		(9.8)		—		—		7.4
	Repurchase of capital stock for cancellation..........		(100.1)		—		34.2		—		—		(65.9)
	Purchase of treasury stock......................		—		(23.9)		—		—		—		(23.9)
	Stock-based compensation and other......		—		11.0		12.9		—		—		23.9
Total comprehensive income:
	Net earnings for the period......................		—		—		—		112.6		—		112.6
	Other comprehensive income (loss), net of tax:
		Actuarial gains on pension and non-pension post-employment plans (note 10)......................	—		—		—		2.3		—		2.3
		Currency translation differences for foreign operations...............................................................	—		—		—		—		(5.4)		(5.4)
		Changes from derivatives designated as hedges.....................................................................	—		—		—		—		6.6		6.6
Balance -- September 30, 2014.........................................			$	2,629.1	$	(24.9)	$	719.0	$	(1,850.5)	$	(13.1)	$	1,459.6

Balance -- January 1, 2015..................................................			$	2,609.5	$	(21.4)	$	677.1	$	(1,845.3)	$	(25.0)	$	1,394.9
Capital transactions (note 9):
	Issuance of capital stock..............................................		8.1		—		(5.0)		—		—		3.1
	Repurchase of capital stock for cancellation............		(528.2)		—		157.8		—		—		(370.4)
	Purchase of treasury stock...........................................		—		(8.2)		—		—		—		(8.2)
	Stock-based compensation and other.......................		—		16.0		12.1		—		—		28.1
Total comprehensive income:
	Net earnings for the period...........................................		—		—		—		54.8		—		54.8
	Other comprehensive income (loss), net of tax:
		Currency translation differences for foreign operations.................................................................	—		—		—		—		(1.4)		(1.4)
		Changes from derivatives designated as hedges.......................................................................	—		—		—		—		(14.6)		(14.6)
Balance -- September 30, 2015...........................................			$	2,089.4	$	(13.6)	$	842.0	$	(1,790.5)	$	(41.0)	$	1,086.3

(a) Accumulated other comprehensive income (loss) is net of tax.

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.


CELESTICA INC.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(in millions of U.S. dollars)
(unaudited)

		Three months ended September 30				Nine months ended September 30
		2014		2015		2014		2015
Cash provided by (used in):
Operating activities:
Net earnings for the period...........................................................................................		$	34.4	$	10.9	$	112.6	$	54.8
Adjustments to net earnings for items not affecting cash:
	Depreciation and amortization...............................................................................	17.3		17.0		50.9		50.5
	Equity-settled stock-based compensation..........................................................	5.2		8.2		22.5		26.8
	Other charges (recoveries).....................................................................................	6.4		(0.3)		6.3		3.7
	Finance costs............................................................................................................	0.7		2.1		2.1		3.7
	Income tax expense.................................................................................................	7.8		18.4		6.3		30.5
Other..................................................................................................................................		2.3		(0.2)		(12.4)		(8.8)
Changes in non-cash working capital items:
	Accounts receivable.................................................................................................	50.4		26.1		(36.3)		49.8
	Inventories..................................................................................................................	6.7		(30.6)		42.0		(129.7)
	Other current assets................................................................................................	1.6		41.0		5.0		40.7
	Accounts payable, accrued and other current liabilities and provisions........	(24.8)		(63.1)		(15.9)		(5.3)
Non-cash working capital changes.............................................................................		33.9		(26.6)		(5.2)		(44.5)
Net income taxes paid...................................................................................................		(4.9)		(4.7)		(19.6)		(12.4)
Net cash provided by operating activities...................................................................		103.1		24.8		163.5		104.3

Investing activities:
Purchase of computer software and property, plant and equipment (a)..............		(9.7)		(15.6)		(44.7)		(46.8)
Proceeds from sale of assets......................................................................................		0.1		1.8		0.6		2.2
Deposit on anticipated sale of real property (note 7)...............................................		—		11.2		—		11.2
Advances to solar supplier (note 4).............................................................................		—		(7.3)		—		(28.3)
Net cash used in investing activities...........................................................................		(9.6)		(9.9)		(44.1)		(61.7)

Financing activities:
Borrowings under revolving credit facilities and term loan (note 8)......................		—		—		—		275.0
Repayments under term loan (note 8)........................................................................		—		(6.2)		—		(6.2)
Issuance of capital stock (note 9)................................................................................		1.1		0.5		7.4		3.1
Repurchase of capital stock for cancellation (note 9)..............................................		(10.8)		—		(67.0)		(370.2)
Purchase of treasury stock (note 9).............................................................................		(23.9)		(8.2)		(23.9)		(8.2)
Finance costs paid.........................................................................................................		(0.8)		(2.1)		(2.0)		(5.4)
Net cash used in financing activities..........................................................................		(34.4)		(16.0)		(85.5)		(111.9)

Net increase (decrease) in cash and cash equivalents.........................................		59.1		(1.1)		33.9		(69.3)
Cash and cash equivalents, beginning of period.....................................................		519.1		496.8		544.3		565.0
Cash and cash equivalents, end of period................................................................		$	578.2	$	495.7	$	578.2	$	495.7

(a) Additional equipment of $8.9 and $17.1 was acquired through a finance lease in the third quarter and first nine months of 2015, respectively. See note 4.

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

CELESTICA INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(in millions of U.S. dollars, except percentages and per share amounts)
(unaudited)

1. REPORTING ENTITY

Celestica Inc. (Celestica) is incorporated in Canada with its corporate headquarters located at 844 Don Mills Road, Toronto, Ontario, M3C 1V7. Celestica's subordinate voting shares are listed on the Toronto Stock Exchange (TSX) and the New York Stock Exchange (NYSE).

Celestica delivers innovative supply chain solutions globally to customers in the Communications (comprised of enterprise communications and telecommunications), Consumer, Diversified (comprised of aerospace and defense, industrial, healthcare, energy, and semiconductor equipment), Servers, and Storage end markets. Our product lifecycle offerings include a range of services to our customers including design, engineering services, supply chain management, new product introduction, component sourcing, electronics manufacturing, assembly and test, complex mechanical assembly, systems integration, precision machining, order fulfillment, logistics and after-market repair and return services.

2. BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES

Statement of compliance:

These unaudited interim condensed consolidated financial statements have been prepared in accordance with International Accounting Standard (IAS) 34, Interim Financial Reporting, as issued by the International Accounting Standards Board (IASB) and the accounting policies we have adopted in accordance with International Financial Reporting Standards (IFRS). These unaudited interim condensed consolidated financial statements reflect all adjustments that are, in the opinion of management, necessary to present fairly our financial position as at September 30, 2015 and our financial performance, comprehensive income (loss) and cash flows for the three and nine months ended September 30, 2015.

The unaudited interim condensed consolidated financial statements were authorized for issuance by our board of directors on October 20, 2015.

Functional and presentation currency:

These unaudited interim condensed consolidated financial statements are presented in U.S. dollars, which is also our functional currency. Unless otherwise noted, all financial information is presented in millions of U.S. dollars (except percentages and per share amounts).

Use of estimates and judgments:

The preparation of financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, revenue and expenses, and the related disclosures of contingent assets and liabilities. Actual results could differ materially from these estimates and assumptions. We review our estimates and underlying assumptions on an ongoing basis and make revisions as determined necessary by management. Revisions are recognized in the period in which the estimates are revised and may impact future periods as well.

Key sources of estimation uncertainty and judgment: We have applied significant estimates and assumptions in the following areas which we believe could have a significant impact on our reported results and financial position: our valuations of inventory, assets held for sale and income taxes; the amount of our restructuring charges or recoveries; the measurement of the recoverable amount of our cash generating units (CGUs) (we define a CGU as the smallest identifiable group of assets that cannot be tested individually and that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets), which includes estimating future growth, profitability and discount rates; our valuations of financial assets and liabilities, pension and non-pension post-employment benefit costs, employee stock-based compensation expense, provisions and contingencies; and the allocation of the purchase price and other valuations related to our business acquisitions.

We have also applied significant judgment in the following areas: the determination of our CGUs and whether events or changes in circumstances during the period are indicators that a review for impairment should be conducted, and the timing of the recognition of charges or recoveries associated with our restructuring actions.

These unaudited interim condensed consolidated financial statements are based upon accounting policies and estimates consistent with those used and described in note 2 of our 2014 annual audited consolidated financial statements. There have been no material changes to our significant accounting estimates and assumptions or the judgments affecting the application of such estimates and assumptions during the third quarter of 2015 from those described in the notes to our 2014 annual audited consolidated financial statements. The near-term economic environment could also impact certain estimates necessary to prepare our consolidated financial statements, in particular, the estimates related to the recoverable amount used in our impairment testing of our non-financial assets, and the discount rates applied to our net pension and non-pension post-employment benefit assets or liabilities.

Recently issued accounting pronouncements:

In May 2014, the IASB issued IFRS 15, Revenue from Contracts with Customers, which provides a single, principles-based five-step model for revenue recognition to be applied to all customer contracts, and requires enhanced disclosures. The IASB recently confirmed a one-year deferral of this standard, which will now be effective January 1, 2018 and allows early adoption. We do not intend to adopt this standard early and are currently evaluating the anticipated impact of adopting this standard on our consolidated financial statements.

In July 2014, the IASB issued a final version of IFRS 9, Financial Instruments, which replaces IAS 39, Financial Instruments: Recognition and Measurement, and is effective for annual periods beginning on or after January 1, 2018, with earlier adoption permitted. The standard introduces a new model for the classification and measurement of financial assets, a single expected credit loss model for the measurement of the impairment of financial assets, and a new model for hedge accounting that is aligned with a company's risk management activities. We do not intend to adopt this standard early and are currently evaluating the anticipated impact of adopting this standard on our consolidated financial statements.

3. SEGMENT AND CUSTOMER REPORTING

End markets:

The following table indicates revenue by end market as a percentage of total revenue for the periods indicated. Our revenue fluctuates from period-to-period depending on numerous factors, including but not limited to: the mix and complexity of the products or services we provide, the extent, timing and rate of new program wins, follow-on business, program completions or losses, the phasing in or out of programs, the success in the marketplace of our customers' products, changes in customer demand, and the seasonality of our business. We expect that the pace of technological change, the frequency of customers transferring business among EMS competitors, the level of outsourcing by customers (including decisions to insource), and the dynamics of the global economy will also continue to impact our business from period-to-period.

	Three months ended September 30				Nine months ended September 30
	2014		2015		2014		2015
Communications................................................................................................		40%		41%		40%	40%
Consumer............................................................................................................		5%		3%		5%	3%
Diversified............................................................................................................		29%		30%		28%	29%
Servers.................................................................................................................		9%		8%		10%	10%
Storage.................................................................................................................		17%		18%		17%	18%

Customers:

For the third quarter and first nine months of 2015, we had two customers that individually represented more than 10% of total revenue (third quarter and first nine months of 2014 — three customers).

4. SOLAR INVESTMENTS

In March 2015, we entered into a supply agreement with an Asian-based solar cell supplier that includes a commitment by us to provide cash advances of up to $36.0 to help this supplier expand its manufacturing operations into Malaysia. This agreement has an initial term of three and a half years, subject to automatic renewal for successive one-year terms unless either party provides a notice of intent not to renew. As of September 30, 2015, we had advanced $28.3 of this amount, which we have recorded as other current assets of $18.0 and other non-current assets of $10.3 in our balance sheet as of September 30, 2015. The remaining committed cash amounts are scheduled to be advanced during the fourth quarter of 2015, and all such cash advances are scheduled to be repaid by this supplier through quarterly repayment installments starting in the fourth quarter of 2015 and continuing through the end of 2017.

In April 2015, we entered into a five-year agreement to lease manufacturing equipment valued at up to $20.0 to be used in our solar operations in Asia. As of September 30, 2015, we recorded lease obligations totaling $17.1, consisting of short-term obligations of $2.8 and long-term obligations of $14.3, related to the manufacturing equipment we received as of such date. Our lease payments are due quarterly and commence in January 2016. This lease qualifies as a finance lease under IFRS. See note 8.

5. ACCOUNTS RECEIVABLE

We have an accounts receivable sales agreement to sell up to $250.0 at any one time in accounts receivable on an uncommitted basis (subject to pre-determined limits by customer) to three third-party banks. Each of these banks had a Standard and Poor's long-term rating of BBB+ or above and short-term rating of A-2 or above at September 30, 2015. The term of this agreement has been annually extended in recent years for additional one-year periods (and is currently extendable to November 2016 under specified circumstances), but may be terminated earlier as provided in the agreement. At September 30, 2015, we had sold $50.0 of accounts receivable under this facility (December 31, 2014 — $50.0). The accounts receivable sold are removed from our consolidated balance sheet and reflected as cash provided by operating activities in our consolidated statement of cash flows. Upon sale, we assign the rights to the accounts receivable to the banks. We continue to collect cash from our customers and remit the cash to the banks when collected. We pay interest and fees which we record in finance costs in our consolidated statement of operations.

6. INVENTORIES

We record our inventory provisions and valuation recoveries in cost of sales. We record inventory provisions to reflect write-downs in the value of our inventory to net realizable value, and valuation recoveries primarily to reflect realized gains on the disposition of inventory previously written down to net realizable value. We recorded net inventory provisions of $0.5 and $4.7 for the third quarter and first nine months of 2015, respectively (third quarter and first nine months of 2014 — $0.7 and $5.5, respectively). We regularly review our estimates and assumptions used to value our inventory through analysis of historical performance.

7. SALE AGREEMENT WITH RESPECT TO REAL PROPERTY IN TORONTO

On July 23, 2015, we entered into an agreement of purchase and sale (the Property Sale Agreement) to sell our real property located in Toronto, Ontario, which includes the site of our corporate headquarters and our Toronto manufacturing operations, to a special purpose entity (the Property Purchaser) to be formed by a consortium of three real estate developers. If the transaction is completed, the purchase price will be approximately $137 million Canadian dollars ($102.0 at period-end exchange rates), exclusive of applicable taxes and subject to adjustment in accordance with the terms of the Property Sale Agreement, including for certain density bonuses and other adjustments in accordance with usual commercial practice.

Upon execution of the Property Sale Agreement, the Property Purchaser paid us a cash deposit of $15 million Canadian dollars ($11.2 at period-end exchange rates), which is non-refundable except in limited circumstances. Upon closing, which is subject to various conditions, including municipal approvals and is currently anticipated to occur within approximately two years, the Property Purchaser is to pay us an additional $53.5 million Canadian dollars in cash ($39.8 at period-end exchange rates). The balance of the purchase price is to be satisfied upon closing by an interest-free, first-ranking mortgage in the amount of $68.5 million Canadian dollars ($51.0 at period-end exchange rates) to be registered on title to the property and having a term of two years from the closing date. We have recorded the cash deposit in other non-current liabilities on our consolidated balance sheet and as cash provided by investing activities in our consolidated statement of cash flows.

As part of the Property Sale Agreement, we have agreed, upon closing, to enter into an interim lease for our existing corporate head office and manufacturing premises on a portion of the real estate for an initial two-year term on a rent-free basis (subject to certain payments including taxes and utilities), which is to be followed by a longer-term lease for Celestica's new corporate headquarters, on commercially reasonable arm's-length terms. There can be no assurance that this transaction will be completed within two years or at all.

Approximately 30% of the interests in the Property Purchaser are to be held by a privately-held company in which Mr. Gerald Schwartz, a controlling shareholder and director of Celestica, has a material interest. Mr. Schwartz also has a non-voting interest in an entity which is to have an approximate 25% interest in the Property Purchaser. Given the interest in the transaction by a related party, our board of directors formed a Special Committee, consisting solely of independent directors, which retained its own independent legal counsel, to review and supervise a competitive bidding process. The Special Committee, after considering, among other factors, that the purchase price for the property exceeded the valuation provided by an independent appraiser, determined that the Property Purchaser's transaction terms are in the best interests of Celestica. Our board of directors, at a meeting where Mr. Schwartz was not present, approved the transaction based on the unanimous recommendation of the Special Committee.

8. CREDIT FACILITIES AND LONG-TERM DEBT

Our $300.0 revolving credit facility was scheduled to mature in October 2018. In order to fund a portion of our share repurchases under the substantial issuer bid (the SIB) completed in June 2015, we amended this facility in May 2015 to add a non-revolving term loan component (the Term Loan) in the amount of $250.0 (in addition to the previous revolving credit limit of $300.0), and to extend the maturity of the entire facility to May 2020. We funded the SIB using the proceeds of the Term Loan, $25.0 drawn on the revolving portion of the credit facility (the Revolving Facility), and $75.0 of available cash on hand. See note 9. At September 30, 2015, $268.8 was outstanding under the credit facility (December 31, 2014 — no amounts outstanding), comprised of $25.0 under the Revolving Facility and $243.8 under the Term Loan.

The Revolving Facility has an accordion feature that allows us to increase the $300.0 limit by an additional $150.0 on an uncommitted basis upon satisfaction of certain terms and conditions. The Revolving Facility also includes a $25.0 swing line, subject to the overall credit limit, that provides for short-term borrowings up to a maximum of seven days. The Revolving Facility permits us and certain designated subsidiaries to borrow funds for general corporate purposes, including acquisitions. Borrowings under the Revolving Facility bear interest for the period of the draw at various base rates selected by us consisting of LIBOR, Prime, Base Rate Canada, and Base Rate (each as defined in the amended credit agreement), plus a margin. The margin for borrowings under the Revolving Facility ranges from 0.6% to 1.4% (except in the case of the LIBOR base rate, in which case, the margin ranges from 1.6% to 2.4%), based on a specified financial ratio based on indebtedness. The Term Loan bears interest at LIBOR plus a margin ranging from 2.0% to 3.0% based on the same financial ratio.

We are required to comply with certain restrictive covenants in respect of the facility, including those relating to the incurrence of senior ranking indebtedness, the sale of assets, a change of control, and certain financial covenants related to indebtedness and interest coverage. Certain of our assets are pledged as security for borrowings under this facility. If an event of a default occurs and is continuing, the administrative agent may declare all advances on the facility to be immediately due and payable and may cancel the lenders' commitments to make further advances thereunder.

The following table sets forth, for the periods indicated, our long-term debt and finance lease obligations:

	December 31 2014		September 30 2015
Term loan.........................................................................................................................................................	$	—	$	243.8
Less: unamortized debt issuance costs....................................................................................................	—		(1.9)
	—		241.9
Finance lease obligations.............................................................................................................................	—		17.1
	—		259.0
Less: current portion of long-term debt and finance lease obligations................................................	—		27.8
Long-term debt and finance lease obligations..........................................................................................	$	—