CTS Corporation Definition of Financial Term - "Controllable Working Capital as a Percentage of Annualized Sales" ($ in millions) Controllable working capital is defined as accounts receivable plus inventories less accounts payable March 31 2016 2015 2015 As of December 31 2014 2013 2012 2011 Net accounts receivable Acquisition adjustments - D&R Adjusted net accounts receivable $ $ $ 64.8 $ $ 64.8 $ 67.1 67.1 $ $ $ 54.6 $ $ 54.6 $ 56.9 $ $ 56.9 $ 62.7 $ $ 62.7 $ 89.4 $ (8.1) $ 81.3 $ 88.4 88.4 Net inventory Acquisition adjustments - D&R Adjusted net inventory $ $ $ 26.1 $ $ 26.1 $ 28.6 28.6 $ $ $ 24.6 $ $ 24.6 $ 27.9 $ $ 27.9 $ 32.2 $ $ 32.2 $ 82.6 $ (6.7) $ 75.9 $ 92.5 92.5 Accounts payable Acquisition adjustments - D&R Adjusted accounts payable $ $ $ 44.0 $ $ 44.0 $ 44.2 44.2 $ $ $ 40.3 $ $ 40.3 $ 43.3 $ $ 43.3 $ 47.1 $ $ 47.1 $ 67.7 $ (3.7) $ 64.1 $ 80.5 80.5 Controllable working capital $ 46.9 $ 51.5 $ 38.9 $ 41.5 $ 47.8 $ 93.1 $ 100.4 Fourth quarter sales Multiplied by 4 Annualized sales $ 96.7 $ 98.3 4 4 $ 386.8 $ 393.2 $ Controllable working capital as a % of annualized sales 12.1% 13.1% 93.3 $ 100.4 $ 102.4 $ 138.3 $ 144.0 4 4 4 4 4 $ 373.2 $ 401.6 $ 409.5 $ 553.2 $ 576.0 10.4% 10.3% 11.7% 16.8% 17.4%