Ingram Micro 2006 Annual Report Download - page 104

SCHEDULE 1 TO INGRAM MICRO 2006 ANNUAL REPORT
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Dollars in 000s, except per share data)
2006 2005 2004 2003 2002
Fiscal Year
Income from operations (GAAP) ............. $ 422,444 $ 362,186 $ 283,367 $ 156,193 $ 50,208
Reorganization costs ...................... 16,276 (2,896) 21,570 71,135
Other major-program costs included in:
Selling, general and administrative expenses . . . . . 22,935 23,363 43,944
Cost of sales .......................... 443 1,552
Non-GAAP income from operations(1) ......... $ 401,397 $ 280,471 $ 201,569 $ 166,839
Net income/(loss) (GAAP) .................. $ 265,766 $ 216,906 $ 219,901 $ 149,201 $ (275,192)
Reconciling items:
Reorganization costs ..................... 16,276 (2,896) 21,570 71,135
Other major-program costs included in:
Selling, general and administrative expenses . . . . 22,935 23,363 43,944
Cost of sales . . ...................... 443 1,552
Loss on repurchase of convertible debentures,
senior subordinated notes, and related interest-
rate swap agreements . . ................. 8,413
Gain on sale of avilable-for-sale securities ....... (6,535)
Foreign exchange gain . . . ................. (23,120)
Tax effect of pre-tax items ................. (13,780) 8,325 (14,521) (40,736)
Reversal of deferred tax liabilities ............ (2,385) (41,078) (70,461)
Cumulative effect of adoption of a new accounting
standard, net of income taxes . . ............ 280,861
Total reconciling items(2) ................... 31,459 (58,769) (39,606) 350,221
Non-GAAP net income .................... $ 248,365 $ 161,132 $ 109,595 $ 75,029
Diluted earnings/(loss) per share (GAAP) ....... $ 1.56 $ 1.32 $ 1.38 $ 0.98 $ (1.81)
Per share impact of reconciling items(3) . . . ....... 0.19 (0.37) (0.26) 2.30
Non-GAAP diluted earnings per share ......... $ 1.51 $ 1.01 $ 0.72 $ 0.49
Weighted average diluted shares.............. 170,875,794 164,331,166 159,680,040 152,308,394 152,145,669
(1) Excludes reorganization costs/(credits) of $16,276, $(2,896), $21,570 and $71,135 in 2005, 2004, 2003 and 2002,
respectively, as well as other major-program costs of $22,935, $23,363 and $43,944 in 2005, 2003 and 2002, respectively,
charged to selling, general and administrative expenses, and $443 and $1,552 in 2003 and 2002, respectively, charged to
costs of sales, which were incurred in the implementation of our broad-based reorganization plan, our comprehensive profit
enhancement program and additional profit enhancement opportunities.
(2) Total reconciling items consists of items noted in footnote (1) above, as well as losses on repurchases of convertible
debentures, senior subordinated notes, and related interest-rate swap agreements; gain on sale of available-for-sale
securities; foreign exchange gain related to the forward currency exchange contract associated with our Australian-dollar
denominated purchase of Tech Pacific; and the aggregate tax impact of these listed items. In addition, it includes the reversal
of deferred tax liabilities in 2005, 2004 and 2003 related to the gain on sale of available-for-sale securities in 2000 and 1999
(see Note 8 to our consolidated financial statements), and the cumulative effect of adoption of a new accounting standard, net
of income taxes, in 2002.
(3) Per share impact of reconciling items is equal to total reconciling items from footnote (2) above divided by weighted average
diluted shares.