O'Reilly Auto Parts 2011 Annual Report Download - page 41

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The table below outlines the impact of the charges related to the new financing transactions, the former CSK officer clawback, the
legacy CSK DOJ investigation charge, as well as the gain on the settlement of the note receivable for the years ended December 31,
2011 and 2010 (amounts in thousands, except per share data):
GAAP Operating income $866,766
15.0 %$712,776 13.2 %
Former CSK officer clawback (2,798)
(0.1) %- - %
Legacy CSK DOJ investigation charge - - %20,900 0.4 %
Non-GAAP adjusted operating income $863,968
14.9 %$733,676 13.6 %
GAAP net income $507,673 8.8 %$419,373 7.8 %
Write-off of asset-based revolving credit facility debt issuance costs, net of tax 13,458 0.2 %- - %
Termination of interest rate swap agreements, net of tax 2,637 - %- - %
Former CSK officer clawback, net of tax (1,741) - %- - %
Legacy CSK DOJ investigation charge - - %20,900 0.4 %
Gain on settlement of note receivable, net of tax - - %(7,215) (0.2) %
Non-GAAP adjusted net income $522,027 9.0 %$433,058 8.0 %
GAAP diluted earnings per common share $3.71 $2.95
Write-off of asset-based revolving credit facility debt issuance costs, net of tax 0.09 -
Termination of interest rate swap agreements, net of tax 0.02 -
Former CSK DOJ officer clawback, net of tax (0.01) -
Legacy CSK DOJ investigation charge - 0.15
Gain on settlement of note receivable, net of tax - (0.05)
Non-GAAP adjusted diluted earnings per common share $3.81 $3.05
Weighted-average common shares outstanding - assuming dilution 136,983 141,992
For the Year Ended December 31,
2011
2010
Amount
% of Sales
Amount
% of Sales
The financial information presented in the paragraph and table above is not derived in accordance with United States generally
accepted accounting principles (―GAAP‖). We do not, nor do we suggest investors should, consider such non-GAAP financial
measures in isolation from, or as a substitute for, GAAP financial information. We believe that the presentation of financial results
and estimates excluding the impact of the non-cash charge to write off the balance of debt issuance costs, the charge related to the
termination of interest rate swap contracts, the former CSK officer clawback, the charges for the legacy CSK DOJ investigation and
the nonrecurring, non-operating gain related to the settlement of a note receivable acquired in the acquisition of CSK, provide
meaningful supplemental information to both management and investors, which is indicative of our core operations. We exclude these
items in judging our performance and believe this non-GAAP information is useful to investors as well. Material limitations of these
non-GAAP measures are that such measures do not reflect actual GAAP amounts. We compensate for such limitations by presenting,
in the table above, the accompanying reconciliation to the most directly comparable GAAP measures.
2010 Compared to 2009
Sales:
Sales for the year ended December 31, 2010, increased $550 million to $5.4 billion from $4.85 billion for the same period one year
ago, representing an increase of 11%. Comparable store sales are calculated based on the change in sales of stores open at least one
year and exclude sales of specialty machinery, sales to independent parts stores, sales to Team Members and sales during the one- to
two-week period certain CSK branded stores were closed for conversion. Comparable store sales for stores open at least one year
increased 8.8% and 4.6% for the year ended December 31, 2010 and 2009, respectively.
FORM 10-K