|
Reconciliation of Reported (GAAP) to Adjusted (non-GAAP) Financial Measures1 (Dollar amounts in millions, except per share data) |
2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|
| Non-GAAP adjustments, Continuing Operations | ||||||
| Goodwill impairment |
$25
|
$-
|
$-
|
$1
|
$4
|
$4
|
| Restructuring-related charges | 9 | 15 | 16 | - | - | - |
| Note impairment | 8 | - | 16 | - | - | - |
| Stock write-off for prior year divestiture | 4 | - | - | - | - | - |
| ECS transaction costs | - | 1 | 7 | - | - | - |
| Gain from sale of real estate | - | - | - | (23) | - | - |
| Pension settlement charge | - | - | - | 15 | - | 12 |
| Impairment charges | - | - | - | 4 | - | 2 |
| Gain/loss from sale of businesses | - | - | - | 3 | (27) | - |
| Benefit from litigation settlement proceeds | - | - | - | - | (7) | - |
| Litigation accrual | - | - | - | - | - | 6 |
| Non-GAAP adjustments, pre-tax | 46 | 16 | 39 | - | (30) | 23 |
| Income tax impact | (5) | (2) | (7) | - | 12 | (9) |
| Special tax items | - | - | (2) | 42 | - | - |
| Non-GAAP adjustments, after tax |
$41
|
$14
|
$30
|
$42
|
$(18)
|
$15
|
| Diluted shares outstanding | 135.9 | 135.4 | 135.2 | 137.3 | 140.0 | 142.9 |
| EPS impact of non-GAAP adjustments |
$0.31
|
$0.10
|
$0.22
|
$0.32
|
$(0.13)
|
$0.09
|
| Adjusted EBIT, EBITDA, Margin, and EPS | ||||||
| Trade sales from continuing operations |
$4,280
|
$4,753
|
$4,270
|
$3,944
|
$3,750
|
$3,917
|
| EBIT (earnings before interest and taxes) |
$401
|
$513
|
$437
|
$468
|
$522
|
$487
|
| Non-GAAP adjustments, pre-tax and excluding interest2 | 46 | 16 | 36 | - | (30) | 23 |
| Adjusted EBIT |
$446
|
$529
|
$473
|
$468
|
$492
|
$510
|
| EBIT margin | 9.4% | 10.8% | 10.2% | 11.9% | 13.9% | 12.4% |
| Adjusted EBIT margin | 10.4% | 11.1% | 11.9% | 11.1% | 13.1% | 13.0% |
| EBIT |
$401
|
$513
|
$437
|
$468
|
$522
|
$487
|
| Depreciation | 119 | 118 | 104 | 95 | 87 | 84 |
| Amortization | 70 | 74 | 32 | 31 | 29 | 30 |
| EBITDA | 590 | 705 | 573 | 594 | 637 | 600 |
| Non-GAAP adjustments, pre-tax and excluding interest2 | 46 | 16 | 36 | - | (30) | 23 |
| Adjusted EBITDA |
$636
|
$721
|
$609
|
$594
|
$607
|
$623
|
| EBITDA margin | 13.8% | 14.8% | 13.4% | 15.1% | 17.0% | 15.3% |
| Adjusted EBITDA margin | 14.9% | 15.2% | 14.3% | 15.1% | 16.2% | 15.9% |
| Diluted EPS from continuing operations |
$1.82
|
$2.47
|
$2.26
|
$2.14
|
$2.62
|
$2.27
|
| EPS impact of non-GAAP adjustments | 0.31 | 0.10 | 0.22 | 0.32 | (0.13) | 0.09 |
| Adjusted EPS from continuing operations |
$2.13
|
$2.57
|
$2.48
|
$2.46
|
$2.49
|
$2.36
|
| Dividend Payout Ratio | ||||||
| Diluted EPS from continuing operations |
$1.82
|
$2.47
|
$2.26
|
$2.14
|
$2.62
|
$2.27
|
| EPS impact of non-GAAP adjustments | 0.31 | 0.10 | 0.22 | 0.32 | (0.13) | 0.09 |
| Adjusted EPS from continuing operations |
$2.13
|
$2.57
|
$2.48
|
$2.46
|
$2.49
|
$2.36
|
| Annual dividend per share |
$1.60
|
$1.58
|
$1.50
|
$1.42
|
$1.34
|
$1.26
|
| Dividend payout % of diluted EPS from cont. ops. | 88% | 64% | 66% | 66% | 51% | 56% |
| Dividend payout % of adjusted EPS from cont. ops. | 75% | 61% | 60% | 58% | 54% | 53% |
| Net Debt to Adjusted EBITDA | ||||||
| Current maturities of long-term debt |
$51
|
$51
|
$1
|
$154
|
$4
|
$3
|
| Long-term debt | 1,849 | 2,067 | 1,168 | 1,098 | 956 | 942 |
| Total debt |
$1,900
|
$2,118
|
$1,169
|
$1,252
|
$960
|
$945
|
| Less: cash and cash equivalents | (349) | (248) | (268) | (526) | (282) | (253) |
| Net debt |
$1,551
|
$1,870
|
$901
|
$726
|
$678
|
$692
|
| Adjusted EBITDA |
$636
|
$721
|
$609
|
$594
|
$607
|
$623
|
| Net debt to adjusted EBITDA | 2.4x | 2.6x | 1.5x | 1.2x | 1.1x | 1.1x |
| Return on Invested Capital | ||||||
| EBIT |
$401
|
$513
|
$437
|
$468
|
$522
|
$487
|
| Non-GAAP adjustments, pre-tax and excluding interest2 | 46 | 16 | 36 | - | (30) | 23 |
| Adjusted EBIT |
$446
|
$529
|
$473
|
$468
|
$492
|
$510
|
| Less: taxes | 95 | (117) | (98) | (104) | (117) | (141) |
| NOPAT (net operating profit after tax) |
$352
|
$412
|
$375
|
$364
|
$375
|
$369
|
| Total debt |
$1,900
|
$2,118
|
$1,169
|
$1,252
|
$960
|
$945
|
| Operating lease liabilities3 | 165 | 161 | - | - | - | - |
| Equity | 1,390 | 1,313 | 1,158 | 1,191 | 1,094 | 1,098 |
| Less: cash and cash equivalents | (349) | (248) | (268) | (526) | (282) | (253) |
| Invested capital |
$3,106
|
$3,343
|
$2,059
|
$1,917
|
$1,772
|
$1,790
|
| Average invested capital | $3,225 |
$2,701 |
$1,988 |
$1,844 |
$1,781 |
$1,788 |
| ROIC (Return on invested capital) | 10.9% | 15.3% | 18.9% | 19.7% | 21.1% | 20.6% |
- 1 Calculations impacted by rounding.
- 2 2018 excludes $3 million of financing-related charges for the ECS acquisition included in interest expense.
- 3 New lease accounting rules adopted January 1, 2019. Prior year data is not available.