Graco 2007 Annual Report Download - page 82

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RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Operating Income, Excluding Charges
2005 2006 2007
Operating Income As Reported $567.4 $ 656.6 $ 740.3
Add: Restructuring and other charges $ 51.6 $ 66.4 $ 86.0
Operating Income, Excluding Charges $619.0 $ 723.0 $ 826.3
Net Sales $6,201.0 $6,407.3
Operating Income % of Sales 11.7% 12.9%
“Normalized” EPS
2005 2006 2007
Diluted earnings per share from continuing operations (as reported) $ 1.48 $ 1.71 $ 1.72
Project Acceleration Restructuring costs $ 0.12 $ 0.17 $ 0.25
Diluted earnings per share from continuing operations (excluding charges) $ 1.60 $ 1.88 $ 1.97
One time events:
Tax Benefit $(0.27) $(0.36) $(0.15)
Liquidation of a Foreign Entity $(0.03)
— —
Stock Options $(0.05)
— —
Pension Curtailment/Other $(0.05)
— —
Restructuring Classified as Continuing Income $ 0.05
— —
“Normalized” EPS $ 1.25 $ 1.52 $ 1.82
Return On Invested Capital (ROIC)
2005 2006 2007
Numerator:
Operating Income As Reported $ 567.4 $ 656.6 $ 740.3
Add: Restructuring and Other Charges $ 51.6 $ 66.4 $ 86.0
Operating Income, Excluding Charges $ 619.0 $ 723.0 $ 826.3
Adjusted Tax Rate (1) 29.1% 28.4% 29.0%
After-tax Operating Income $ 438.9 $ 517.7 $ 586.7
Denominator:
Average Invested Capital (2) $4,243.6 $4,291.7 $4,276.5
Return on Invested Capital (ROIC) 10.3% 12.1% 13.7%
Change versus prior year +180bps +160bps
(1) One-time net tax benefits of $73.9 million, $102.8 million, and $41.3 million are excluded from the adjusted tax rate calculation for 2005, 2006, and 2007, respectively.
(2) Average invested capital includes notes payable, current portion of long-term debt, long-term debt, and stockholders’ equity calculated as an average of the five most recent quarter-end balances.
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Newell Rubbermaid Inc. 2007 Annual Report