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Appendix A
2014 2013 2012 2011 2010
Diluted earnings per share from continuing operations (GAAP) 5.83$ 5.62$ 5.49$ 4.12$ 4.41$
Adjustments, net of tax:
Amortization of acquisition-related intangibles 0.85 0.56 0.45 0.30 0.26
Acquisition related expenses 0.63 (0.02) 0.07 0.14 —
Litigation reserve adjustments 0.23 0.19 0.24 0.57 (0.04)
LIFO-related adjustments 0.81 0.03 0.03 — 0.02
Adjusted earnings per share (Non-GAAP) 18.35$ 6.38$ 6.28$ 5.13$ 4.65$
2009 2008 2007
Diluted earnings per share from continuing operations (GAAP) 2.82$ 3.22$ 3.09$
Adjustments, net of tax:
Amortization of acquisition-related intangibles 0.28 0.22 0.12
Acquisition related expenses — 0.01 0.02
Litigation reserve adjustments 1.11 (0.01) (0.29)
LIFO-related adjustments 0.02 (0.03) (0.13)
Adjusted earnings per share (Non-GAAP)
1
4.23$ 3.41$ 2.81$
(1) Certain computations may reflect rounding adjustments.
Definitions related to Adjusted Earnings (Non-GAAP) Financial Information
by the Company.
RECONCILIATION OF GAAP EARNINGS PER SHARE TO ADJUSTED EARNINGS PER SHARE (NON-GAAP)
Years Ended March 31,
Income taxes on Adjusted Earnings are calculated in accordance with Accounting Standards Codification ("ASC") 740, “Income Taxes,” which is the same
accounting principle used by the Company when presenting its GAAP financial results.
The Company believes the presentation of non-GAAP measures such as Adjusted Earnings provides useful supplemental information to investors with regard
to its core operating performance, as well as assists with the comparison of its past financial performance to the Company’ s future financial results.
Moreover, the Company believes that the presentation of Adjusted Earnings assists investors’ ability to compare its financial results to those of other
companies in the same industry. However, the Company's Adjusted Earnings measure may be defined and calculated differently by other companies in the
same industry.
Litigation reserve adjustments - Adjustments to the Company’ s reserves, including accrued interest, for estimated probable losses for its
Examples include transaction closing costs, professional service fees, restructuring or severance charges, retention payments, employee relocation
expenses, facility or other exit-related expenses, recoveries of acquisition-related expenses or post-closing expenses, bridge loan fees, gains or losses
related to foreign currency contracts, and gains or losses on business combinations.
Average Wholesale Price litigation matter, as such term is defined in the Company’ s Annual Report on Form 10-K for the fiscal year ended
March 31, 2014.
The Company internally uses non-GAAP financial measures such as Adjusted Earnings in connection with its own financial planning and reporting
processes. Specifically, Adjusted Earnings serves as one of the measures management utilizes when allocating resources, deploying capital and assessing
business performance and employee incentive compensation. Nonetheless, non-GAAP financial results and related measures disclosed by the Company
should not be considered a substitute for, nor superior to, financial results and measures as determined or calculated in accordance with GAAP.
Adjusted Earnings represents income from continuing operations, excluding the effects of the following items from the Company’ s GAAP financial results,
including the related income tax effects:
Amortization of acquisition-related intangibles - Amortization expense of acquired intangible assets purchased in connection with acquisitions
Acquisition expenses and related adjustments - Transaction and integration expenses that are directly related to acquisitions by the Company.
LIFO-related adjustments - Last-In-First-Out ("LIFO") inventory-related adjustments.