 |
NON-GAAP FINANCIAL INFORMATION
The noted references in the shareholder letter
to operating income and net income per share were each adjusted for certain
charges, credits, and losses that impact the comparability of our results
of operations. These charges, credits, and losses arise out of the company’s
acquisitions of other companies, the company’s efficiency enhancement
initiatives, the sale of property, impairment charges, the severance
of a former chief executive officer, the prepayment of debt, the operations
of a discontinued business, and required changes in accounting principles.
This financial information has not been prepared in accordance with generally
accepted accounting principles (GAAP). The following table sets forth
reconciliations of operating income and net income per diluted share,
prepared in accordance with GAAP, to operating income and net income
per diluted share, each as adjusted.
We believe that such non-GAAP financial information may be useful to
investors to assist in assessing and understanding our operating performance
and the underlying trends in our business because management considers
the charges, credits, and losses referred to above to be outside our
core operating results. This non-GAAP financial information is among
the primary indicators management uses as a basis for evaluating our
financial and operating performance. In addition, our Board of Directors
uses this non-GAAP financial information in evaluating management performance
and setting management compensation.
The presentation of this non-GAAP financial information is not meant
to be considered in isolation or as a substitute for, or alternative
to, operating income and net income per diluted share determined in accordance
with GAAP. Analysis of results and outlook on a non-GAAP basis should
be used as a complement to, and in conjunction with, data presented in
accordance with GAAP.
(In thousands except per share data)
|
| Year ended December 31, |
|
2004 |
|
|
2003 |
|
|
2002 |
|
|
| |
|
|
|
|
|
|
|
| Operating income, as reported |
$ |
439,338 |
|
$ |
184,045 |
|
$ |
167,530 |
|
| Acquisition indemnification charge (credit) |
|
(9,676 |
) |
|
13,002 |
|
|
— |
|
| Restructuring charges |
|
11,391 |
|
|
37,965 |
|
|
— |
|
| Integration charge
(credit) |
|
(2,323 |
) |
|
6,904 |
|
|
— |
|
| Impairment charge |
|
9,995 |
|
|
— |
|
|
— |
|
| Severance charge |
|
— |
|
|
— |
|
|
5,375 |
|
|
| Operating income, as adjusted |
$ |
448,725 |
|
$ |
241,916 |
|
$ |
172,905 |
|
|
| |
|
|
|
|
|
|
|
|
|
| Net income (loss) per diluted share, as reported |
$ |
1.75 |
|
$ |
.25 |
|
$ |
(6.12 |
) |
| Acquisition indemnification
charge (credit) |
|
(.08 |
) |
|
.13 |
|
|
— |
|
| Restructuring charges |
|
.06 |
|
|
.27 |
|
|
— |
|
| Integration charge (credit) |
|
(.01 |
) |
|
.05 |
|
|
— |
|
| Impairment charge |
|
.08 |
|
|
— |
|
|
— |
|
| Severance charge |
|
— |
|
|
— |
|
|
.03 |
|
| Loss on prepayment of debt |
|
.16 |
|
|
.04 |
|
|
.13 |
|
| Loss on investment |
|
.01 |
|
|
— |
|
|
— |
|
| Loss from discontinued operations |
|
— |
|
|
— |
|
|
.06 |
|
| Cumulative effect of change
in accounting principle |
|
— |
|
|
— |
|
|
6.05 |
|
|
| Net income per diluted share, as adjusted |
$ |
1.97 |
|
$ |
.74 |
|
$ |
.15 |
|
|
|
