Henry Schein 2008 Annual Report Download - page 10

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N ON -G AAP D ISCLOSURES
USE OF NON-GAAP MEASURES:
The above information includes financial measures that are not calculated and presented in accordance with accounting principles generally accepted in the United States (“GAAP”).
The above table reconciles operating income, income from continuing operations and diluted earnings from continuing operations per share, our most directly comparable measure
calculated and presented in accordance with GAAP, to comparable amounts as adjusted to eliminate the effect of one-time items.
We eliminated the effect of such one-time items to assist in evaluating the underlying operational performance of our business, excluding such one-time items, over the periods
presented. We believe that this presentation is appropriate and facilitates such an evaluation by us, investors and analysts. These measures should be considered supplemental to,
and not a substitute for or superior to, financial measures calculated in accordance with GAAP.
NOTES:
(1) During 2008, we recorded restructuring costs of $23.4 million pre-tax ($16.0 million post-tax). The effect that this charge had on earnings per diluted share
from continuing operations for the year ended December 27, 2008 was ($0.18).
(2) During 2004, we recorded a non-recurring $13.2 million pre-tax ($8.4 million post-tax) charge related to the Fluvirin®contract with Chiron Corporation.
The effect that this charge had on earnings per diluted share from continuing operations for the year ended December 25, 2004 was ($0.10). Excluding this charge,
our earnings per diluted share from continuing operations for 2004 was $1.39.
(3) During 2008, we recorded a charge related to the Lehman Brothers bankruptcy of $4.5 million pre-tax ($3.0 million post-tax). The effect that this charge had on
earnings per diluted share from continuing operations for the year ended December 27, 2008 was ($0.03).
Years ended
December 27, December 25, December 27, De
2008 2004 2003
(in thousands, except per share data)
Operating income, as reported $ 419,603 $ 191,949 $ 217,432
Adjustments:
Restructuring costs
(1)
23,240 - -
One-time charge related to influenza vaccine contract
(2)
- 13,246 -
Adjusted operating income 442,843 205,195 217,432
Adjusted operating margin 6.9% 5.4% 6.8%
Income from continuing operations, as reported 251,011 114,129 128,759
Adjustments, net of tax:
Restructuring costs
(1)
15,991 - -
One-time charge related to influenza vaccine contract
(2)
- 8,358 -
Loss related to the Lehman Brothers bankruptcy
(3)
3,045 - -
Adjusted income from continuing operations $ 270,047 $ 122,487 $ 128,305
Diluted earnings from continuing operations per share:
As reported $ 2.75 $ 1.29 $ 1.45
Adjusted 2.96 1.39 1.44
Diluted weighted-average common shares outstanding: 91,221 89,646 89,099
The following table sets forth, for the periods indicated, a reconciliation of operating income and income from continuing operations adjusted to reflect the effects of discontinued
operations, as reported to adjusted operating income and adjusted income from continuing operations. The diluted earnings from continuing operations per share and weighted-average
common shares outstanding information reflects a two-for-one stock split effected in the form of a dividend that became effective on February 28, 2005.