|
Reconciliation of Reported (GAAP) to Adjusted (non-GAAP) Financial Measures 1 2 (Dollar amounts in millions, except per share data) |
2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|
| Non-GAAP adjustments, Continuing Operations | ||||||
| Gain from sale of real estate |
$(28)
|
$-
|
$-
|
$-
|
$(23)
|
$-
|
| Goodwill impairment | - | 25 | - | - | 1 | 4 |
| Restructuring-related charges | - | 8 | 10 | 23 | - | - |
| Note impairment | - | 8 | - | 16 | - | - |
| Stock write-off for prior year divestiture | - | 4 | - | - | - | - |
| ECS transaction costs | - | - | 1 | 7 | - | - |
| Pension settlement charge | - | - | - | - | 15 | - |
| Impairment charges | - | - | - | - | 3 | - |
| (Gain)/loss from sale of businesses | - | - | - | - | 3 | (28) |
| Benefit from litigation settlement proceeds | - | - | - | - | - | (7) |
| Non-GAAP adjustments, pre-tax | (28) | 45 | 11 | 46 | - | (31) |
| Income tax impact | 7 | (4) | (1) | (9) | - | 12 |
| Special tax items | - | - | - | (2) | 42 | - |
| Non-GAAP adjustments, after tax |
$(21)
|
$41
|
$10
|
$35
|
$42
|
$(19)
|
| Diluted shares outstanding | 136.7 | 135.9 | 135.4 | 135.2 | 137.3 | 140.0 |
| EPS impact of non-GAAP adjustments |
$(0.16)
|
$0.30
|
$0.07
|
$0.26
|
$0.32
|
$(0.14)
|
| Adjusted EBIT, EBITDA, Margin, and EPS | ||||||
| Trade sales from continuing operations |
$5,073
|
$4,280
|
$4,753
|
$4,270
|
$3,944
|
$3,750
|
| EBIT (earnings before interest and taxes) |
$596
|
$408
|
$487
|
$460
|
$482
|
$536
|
| Non-GAAP adjustments, pre-tax and excluding interest 3 | (28) | 45 | 11 | 42 | - | (31) |
| Adjusted EBIT |
$568
|
$453
|
$498
|
$503
|
$482
|
$504
|
| EBIT margin | 11.7% | 9.5% | 10.2% | 10.8% | 12.2% | 14.3% |
| Adjusted EBIT margin | 11.2% | 10.6% | 10.5% | 11.8% | 12.2% | 13.5% |
| EBIT |
$596
|
$408
|
$487
|
$460
|
$482
|
$536
|
| Depreciation | 117 | 119 | 118 | 104 | 95 | 87 |
| Amortization | 71 | 70 | 74 | 32 | 31 | 29 |
| EBITDA | 783 | 597 | 679 | 596 | 608 | 651 |
| Non-GAAP adjustments, pre-tax and excluding interest 3 | (28) | 45 | 11 | 42 | - | (31) |
| Adjusted EBITDA |
$755
|
$642
|
$690
|
$639
|
$608
|
$620
|
| EBITDA margin | 15.4% | 13.9% | 14.3% | 14.0% | 15.4% | 17.4% |
| Adjusted EBITDA margin | 14.9% | 15.0% | 14.5% | 15.0% | 15.4% | 16.5% |
| Diluted EPS from continuing operations |
$2.94
|
$1.86
|
$2.32
|
$2.39
|
$2.25
|
$2.68
|
| EPS impact of non-GAAP adjustments | (0.16) | 0.30 | 0.07 | 0.26 | 0.32 | (0.14) |
| Adjusted EPS from continuing operations |
$2.78
|
$2.16
|
$2.39
|
$2.65
|
$2.57
|
$2.54
|
| Dividend Payout Ratio | ||||||
| Diluted EPS from continuing operations |
$2.94
|
$1.86
|
$2.32
|
$2.39
|
$2.25
|
$2.68
|
| EPS impact of non-GAAP adjustments | (0.16) | 0.30 | 0.07 | 0.26 | 0.32 | (0.14) |
| Adjusted EPS from continuing operations |
$2.78
|
$2.16
|
$2.39
|
$2.65
|
$2.57
|
$2.54
|
| Annual dividend per share |
$1.66
|
$1.60
|
$1.58
|
$1.50
|
$1.42
|
$1.34
|
| Dividend payout % of diluted EPS from cont. ops. | 56% | 86% | 68% | 63% | 63% | 50% |
| Dividend payout % of adjusted EPS from cont. ops. | 60% | 74% | 66% | 57% | 55% | 53% |
| Net Debt to Adjusted EBITDA | ||||||
| Current maturities of long-term debt |
$301
|
$51
|
$51
|
$1
|
$154
|
$4
|
| Long-term debt | 1,790 | 1,849 | 2,067 | 1,168 | 1,098 | 956 |
| Total debt |
$2,090
|
$1,900
|
$2,118
|
$1,169
|
$1,252
|
$960
|
| Less: cash and cash equivalents | (362) | (349) | (248) | (268) | (526) | (282) |
| Net debt |
$1,729
|
$1,551
|
$1,870
|
$901
|
$726
|
$678
|
| Adjusted EBITDA |
$755
|
$642
|
$690
|
$639
|
$608
|
$620
|
| Net debt to adjusted EBITDA | 2.3x | 2.4x | 2.7x | 1.4x | 1.2x | 1.1x |
| Return on Invested Capital | ||||||
| EBIT |
$596
|
$408
|
$487
|
$460
|
$482
|
$536
|
| Non-GAAP adjustments, pre-tax and excluding interest 3 | (28) | 45 | 11 | 42 | - | (31) |
| Adjusted EBIT |
$568
|
$453
|
$498
|
$503
|
$482
|
$504
|
| Less: taxes | (129) | (96) | (109) | (106) | (104) | (121) |
| NOPAT (net operating profit after tax) |
$438
|
$357
|
$389
|
$397
|
$379
|
$383
|
| Total debt |
$2,090
|
$1,900
|
$2,118
|
$1,169
|
$1,252
|
$960
|
| Operating lease liabilities 4 | 198 | 165 | 161 | - | - | - |
| Equity | 1,649 | 1,425 | 1,342 | 1,207 | 1,222 | 1,111 |
| Less: cash and cash equivalents | (362) | (349) | (248) | (268) | (526) | (282) |
| Invested capital |
$3,575
|
$3,141
|
$3,373
|
$2,108
|
$1,948
|
$1,789
|
| Average invested capital |
$3,358
|
$3,257
|
$2,740
|
$2,028
|
$1,869
|
$1,794
|
| ROIC (return on invested capital), adjusted | 13.1% | 11.0% | 14.2% | 19.6% | 20.3% | 21.3% |