Exhibit 99.1
PolyOne Corporation and Subsidiaries
Diluted Earnings per Share, as Reported and as Adjusted (Unaudited)
Diluted Earnings per Share, as Reported and as Adjusted (Unaudited)
Diluted earnings (loss) per share is computed as net income available to common shareholders divided by the weighted average diluted shares outstanding. Diluted earnings (loss) before special items is calculated as net income excluding special items and certain tax adjustments as defined on page 5.
Diluted EPS | ||||||||||||||||
Diluted EPS | Before Special Items (1) | |||||||||||||||
As Reported | As Adjusted | As Reported | As Adjusted | |||||||||||||
Q1 | $ | 0.19 | $ | 0.22 | $ | 0.17 | $ | 0.18 | ||||||||
Q2 | $ | 0.47 | $ | 0.50 | $ | 0.25 | $ | 0.27 | ||||||||
Q3 | $ | 0.01 | $ | 0.04 | $ | 0.28 | $ | 0.30 | ||||||||
Q4 | $ | 1.00 | $ | 0.92 | $ | 0.17 | $ | 0.18 | ||||||||
2010 | $ | 1.69 | $ | 1.69 | $ | 0.88 | $ | 0.94 |
Diluted EPS | ||||||||||||||||
Diluted EPS | Before Special Items (1) | |||||||||||||||
As Reported | As Adjusted | As Reported | As Adjusted | |||||||||||||
Q1 | $ | (0.19 | ) | $ | 0.04 | $ | (0.10 | ) | $ | (0.07 | ) | |||||
Q2 | $ | (0.02 | ) | $ | 0.01 | $ | 0.09 | $ | 0.11 | |||||||
Q3 | $ | 0.51 | $ | 0.55 | $ | 0.13 | $ | 0.15 | ||||||||
Q4 | $ | 0.22 | $ | 0.54 | $ | 0.11 | $ | 0.14 | ||||||||
2009 | $ | 0.53 | $ | 1.14 | $ | 0.25 | $ | 0.33 |
Diluted EPS | ||||||||||||||||
Diluted EPS | Before Special Items (1) | |||||||||||||||
As Reported | As Adjusted | As Reported | As Adjusted | |||||||||||||
Q1 | $ | 0.08 | $ | 0.09 | $ | 0.09 | $ | 0.10 | ||||||||
Q2 | $ | 0.12 | $ | 0.13 | $ | 0.15 | $ | 0.16 | ||||||||
Q3 | $ | (0.01 | ) | $ | 0.00 | $ | 0.18 | $ | 0.19 | |||||||
Q4 | $ | (3.01 | ) | $ | (4.76 | ) | $ | (0.04 | ) | $ | (0.03 | ) | ||||
2008 | $ | (2.81 | ) | $ | (4.50 | ) | $ | 0.38 | $ | 0.43 |
Diluted EPS | ||||||||||||||||
Diluted EPS | Before Special Items (1) | |||||||||||||||
As Reported | As Adjusted | As Reported | As Adjusted | |||||||||||||
Q1 | $ | 0.07 | $ | 0.09 | $ | 0.08 | $ | 0.10 | ||||||||
Q2 | $ | (0.03 | ) | $ | (0.01 | ) | $ | 0.13 | $ | 0.15 | ||||||
Q3 | $ | 0.05 | $ | 0.07 | $ | 0.17 | $ | 0.18 | ||||||||
Q4 | $ | 0.10 | $ | 0.29 | $ | 0.10 | $ | 0.12 | ||||||||
2007 | $ | 0.19 | $ | 0.44 | $ | 0.48 | $ | 0.55 |
1
Exhibit 99.1(continued)
PolyOne Corporation and Subsidiaries
Consolidated Statements of Operations, as Adjusted (Unaudited)
(In millions, except per share data)
Consolidated Statements of Operations, as Adjusted (Unaudited)
(In millions, except per share data)
1Q10 | 2Q10 | 3Q10 | 4Q10 | 2010Y | ||||||||||||||||
Sales | $ | 630.4 | $ | 692.9 | $ | 680.8 | $ | 617.8 | $ | 2,621.9 | ||||||||||
Cost of sales | 526.7 | 566.1 | 569.5 | 530.8 | 2,193.1 | |||||||||||||||
Gross margin | 103.7 | 126.8 | 111.3 | 87.0 | 428.8 | |||||||||||||||
Selling and administrative | 71.5 | 70.7 | 74.6 | 79.4 | 296.2 | |||||||||||||||
Income related to equity affiliates | 1.5 | 7.8 | 10.5 | 22.2 | 42.0 | |||||||||||||||
Operating income | 33.7 | 63.9 | 47.2 | 29.8 | 174.6 | |||||||||||||||
Interest expense, net | (8.0 | ) | (7.7 | ) | (7.5 | ) | (8.3 | ) | (31.5 | ) | ||||||||||
Debt extinguishment costs | — | — | (29.4 | ) | (0.1 | ) | (29.5 | ) | ||||||||||||
Other expense, net | (0.7 | ) | (1.2 | ) | (0.3 | ) | (0.1 | ) | (2.3 | ) | ||||||||||
Income before income taxes | 25.0 | 55.0 | 10.0 | 21.3 | 111.3 | |||||||||||||||
Income tax benefit (expense) | (4.0 | ) | (6.9 | ) | (6.4 | ) | 68.6 | 51.3 | ||||||||||||
Net income | $ | 21.0 | $ | 48.1 | $ | 3.6 | $ | 89.9 | $ | 162.6 | ||||||||||
Basic earnings per common share | $ | 0.23 | $ | 0.52 | $ | 0.04 | $ | 0.96 | $ | 1.75 | ||||||||||
Diluted earnings per common share | $ | 0.22 | $ | 0.50 | $ | 0.04 | $ | 0.92 | $ | 1.69 | ||||||||||
Weighted average shares used to compute earnings per share: | ||||||||||||||||||||
Basic | 92.5 | 92.8 | 93.1 | 93.7 | 93.1 | |||||||||||||||
Diluted | 95.3 | 96.3 | 96.3 | 97.4 | 96.0 |
1Q09 | 2Q09 | 3Q09 | 4Q09 | 2009Y | ||||||||||||||||
Sales | $ | 463.4 | $ | 496.5 | $ | 548.3 | $ | 552.5 | $ | 2,060.7 | ||||||||||
Cost of sales | 412.2 | 415.5 | 442.2 | 467.0 | 1,736.9 | |||||||||||||||
Gross margin | 51.2 | 81.0 | 106.1 | 85.5 | 323.8 | |||||||||||||||
Selling and administrative | 49.6 | 74.0 | 53.4 | 39.9 | 216.9 | |||||||||||||||
Impairment of goodwill | 5.0 | — | — | — | 5.0 | |||||||||||||||
Income related to equity affiliates | 13.3 | 10.1 | 5.2 | 6.6 | 35.2 | |||||||||||||||
Operating income | 9.9 | 17.1 | 57.9 | 52.2 | 137.1 | |||||||||||||||
Interest expense, net | (8.8 | ) | (8.8 | ) | (8.5 | ) | (8.2 | ) | (34.3 | ) | ||||||||||
Other expense, net | (6.6 | ) | (0.7 | ) | (1.2 | ) | (1.1 | ) | (9.6 | ) | ||||||||||
Income (loss) before income taxes | (5.5 | ) | 7.6 | 48.2 | 42.9 | 93.2 | ||||||||||||||
Income tax benefit (expense) | 8.8 | (6.3 | ) | 3.1 | 7.9 | 13.5 | ||||||||||||||
Net income | $ | 3.3 | $ | 1.3 | $ | 51.3 | $ | 50.8 | $ | 106.7 | ||||||||||
Basic earnings per common share | $ | 0.04 | $ | 0.01 | $ | 0.56 | $ | 0.55 | $ | 1.15 | ||||||||||
Diluted earnings per common share | $ | 0.04 | $ | 0.01 | $ | 0.55 | $ | 0.54 | $ | 1.14 | ||||||||||
Weighted average shares used to compute earnings (loss) per share: | ||||||||||||||||||||
Basic | 92.2 | 92.4 | 92.4 | 92.5 | 92.4 | |||||||||||||||
Diluted | 92.5 | 93.5 | 93.9 | 94.4 | 93.4 |
2
Exhibit 99.1(continued)
PolyOne Corporation and Subsidiaries
Consolidated Statements of Operations, as Adjusted (Unaudited)
(In millions, except per share data)
Consolidated Statements of Operations, as Adjusted (Unaudited)
(In millions, except per share data)
1Q08 | 2Q08 | 3Q08 | 4Q08 | 2008Y | ||||||||||||||||
Sales | $ | 713.7 | $ | 748.1 | $ | 735.1 | $ | 541.8 | $ | 2,738.7 | ||||||||||
Cost of sales | 627.3 | 655.7 | 663.0 | 505.7 | 2,451.7 | |||||||||||||||
Gross margin | 86.4 | 92.4 | 72.1 | 36.1 | 287.0 | |||||||||||||||
Selling and administrative | 70.7 | 72.8 | 67.4 | 228.7 | 439.6 | |||||||||||||||
Impairment of goodwill | — | — | — | 170.0 | 170.0 | |||||||||||||||
Income related to equity affiliates | 8.1 | 10.5 | 5.8 | 6.8 | 31.2 | |||||||||||||||
Operating income (loss) | 23.8 | 30.1 | 10.5 | (355.8 | ) | (291.4 | ) | |||||||||||||
Interest expense, net | (8.4 | ) | (9.8 | ) | (9.7 | ) | (9.3 | ) | (37.2 | ) | ||||||||||
Other expense, net | (2.0 | ) | (0.7 | ) | — | (1.9 | ) | (4.6 | ) | |||||||||||
Income (loss) before income taxes | 13.4 | 19.6 | 0.8 | (367.0 | ) | (333.2 | ) | |||||||||||||
Income tax expense | (4.6 | ) | (7.0 | ) | (0.6 | ) | (71.6 | ) | (83.8 | ) | ||||||||||
Net income (loss) | $ | 8.8 | $ | 12.6 | $ | 0.2 | $ | (438.6 | ) | $ | (417.0 | ) | ||||||||
Basic and diluted earnings (loss) per common share: | $ | 0.09 | $ | 0.14 | $ | 0.00 | $ | (4.76 | ) | $ | (4.50 | ) | ||||||||
Diluted earnings (loss) per common share | $ | 0.09 | $ | 0.13 | $ | 0.00 | $ | (4.76 | ) | $ | (4.50 | ) | ||||||||
Weighted average shares used to compute earnings (loss) per share: | ||||||||||||||||||||
Basic | 92.9 | 93.0 | 92.9 | 92.1 | 92.7 | |||||||||||||||
Diluted | 93.3 | 93.8 | 93.7 | 92.1 | 92.7 |
1Q07 | 2Q07 | 3Q07 | 4Q07 | 2007Y | ||||||||||||||||
Sales | $ | 657.8 | $ | 688.8 | $ | 664.8 | $ | 631.3 | $ | 2,642.7 | ||||||||||
Cost of sales | 575.3 | 601.9 | 630.6 | 562.1 | 2,369.9 | |||||||||||||||
Gross margin | 82.5 | 86.9 | 34.2 | 69.2 | 272.8 | |||||||||||||||
Selling and administrative | 61.4 | 65.8 | 62.6 | 30.7 | 220.5 | |||||||||||||||
Income (loss) related to equity affiliates | 6.5 | (1.6 | ) | 11.7 | 11.1 | 27.7 | ||||||||||||||
Operating income (loss) | 27.6 | 19.5 | (16.7 | ) | 49.6 | 80.0 | ||||||||||||||
Interest expense, net | (14.4 | ) | (15.1 | ) | (10.3 | ) | (7.1 | ) | (46.9 | ) | ||||||||||
Premium on early extinguishment of debt | — | (5.3 | ) | (7.5 | ) | — | (12.8 | ) | ||||||||||||
Other expense, net | (0.9 | ) | (1.8 | ) | (1.8 | ) | (2.1 | ) | (6.6 | ) | ||||||||||
Income (loss) before income taxes | 12.3 | (2.7 | ) | (36.3 | ) | 40.4 | 13.7 | |||||||||||||
Income tax benefit (expense) | (3.9 | ) | 1.7 | 42.9 | (13.5 | ) | 27.2 | |||||||||||||
Net income (loss) | $ | 8.4 | $ | (1.0 | ) | $ | 6.6 | $ | 26.9 | $ | 40.9 | |||||||||
Basic and diluted earnings (loss) per common share: | $ | 0.09 | $ | (0.01 | ) | $ | 0.07 | $ | 0.29 | $ | 0.44 | |||||||||
Weighted average shares used to compute earnings (loss) per share: | ||||||||||||||||||||
Basic | 92.6 | 92.8 | 92.8 | 92.9 | 92.8 | |||||||||||||||
Diluted | 93.0 | 92.8 | 93.3 | 93.2 | 93.1 |
3
Exhibit 99.1(continued)
PolyOne Corporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures, as Adjusted (Unaudited)
(In millions)
Reconciliation of Non-GAAP Financial Measures, as Adjusted (Unaudited)
(In millions)
Senior management uses gross margin before special items and operating income before special items to assess performance and allocate resources because senior management believes that these measures are useful in understanding current profitability levels and that current levels may serve as a base for future performance. In addition, operating income before the effect of special items is a component of various PolyOne annual and long-term employee incentive plans and is used in debt covenant computations. Below is a reconciliation of non-GAAP financial measures to the most directly comparable measures calculated and presented in accordance with GAAP.
Senior management uses net income before special items to assess performance and allocate resources because senior management believes that these measures are useful in understanding current profitability levels and that current levels may serve as a base for future performance. Below is a reconciliation of non-GAAP financial measures to the most directly comparable measures calculated and presented in accordance with GAAP.
1Q10 | 2Q10 | 3Q10 | 4Q10 | 2010Y | ||||||||||||||||
Reconciliation to Consolidated Statements of Operations | ||||||||||||||||||||
Sales | $ | 630.4 | $ | 692.9 | $ | 680.8 | $ | 617.8 | $ | 2,621.9 | ||||||||||
Gross margin — as reported | 103.5 | 126.7 | 111.2 | 87.5 | 428.9 | |||||||||||||||
Pension accounting change adjustment | 0.2 | 0.1 | 0.1 | (0.5 | ) | (0.1 | ) | |||||||||||||
Pension accounting change — special items (1) | (0.1 | ) | — | — | 0.6 | 0.5 | ||||||||||||||
Special items (1) in gross margin — as reported | 3.1 | (10.9 | ) | 4.7 | 8.9 | 5.8 | ||||||||||||||
Gross margin before special items — adjusted | $ | 106.7 | $ | 115.9 | $ | 116.0 | $ | 96.5 | $ | 435.1 | ||||||||||
Gross margin before special items as a percent of sales | 16.9 | % | 16.7 | % | 17.0 | % | 15.6 | % | 16.6 | % | ||||||||||
Operating income — as reported | $ | 31.1 | $ | 61.5 | $ | 44.6 | $ | 37.1 | $ | 174.3 | ||||||||||
Pension accounting change adjustment | 2.6 | 2.4 | 2.6 | (7.3 | ) | 0.3 | ||||||||||||||
Pension accounting change — special items (1) | (0.1 | ) | — | — | 9.7 | 9.6 | ||||||||||||||
Special items (1) in operating income — as reported | 3.3 | (10.5 | ) | 5.5 | (5.5 | ) | (7.2 | ) | ||||||||||||
Operating income before special items — adjusted | $ | 36.9 | $ | 53.4 | $ | 52.7 | $ | 34.0 | $ | 177.0 | ||||||||||
Net income — as reported | $ | 18.4 | $ | 45.7 | $ | 1.0 | $ | 97.5 | $ | 162.6 | ||||||||||
Pension accounting change adjustment, after tax | 2.6 | 2.4 | 2.6 | (7.6 | ) | — | ||||||||||||||
Pension accounting change — special items, after tax (1) | (1.1 | ) | (0.9 | ) | (1.0 | ) | 9.1 | 6.1 | ||||||||||||
Special items (1) and non-recurring items, after tax — as reported | (0.2 | ) | (9.0 | ) | 21.8 | (2.9 | ) | 9.7 | ||||||||||||
Tax adjustments (2) — as reported | (2.5 | ) | (12.2 | ) | 4.6 | (78.2 | ) | (88.3 | ) | |||||||||||
$ | 17.2 | $ | 26.0 | $ | 29.0 | $ | 17.9 | $ | 90.1 | |||||||||||
1Q09 | 2Q09 | 3Q09 | 4Q09 | 2009Y | ||||||||||||||||
Reconciliation to Consolidated Statements of Operations | ||||||||||||||||||||
Sales | $ | 463.4 | $ | 496.5 | $ | 548.3 | $ | 552.5 | $ | 2,060.7 | ||||||||||
Gross margin — as reported | 50.8 | 80.9 | 106.0 | 84.5 | 322.2 | |||||||||||||||
Pension accounting change adjustment | 0.4 | 0.1 | 0.1 | 1.0 | 1.6 | |||||||||||||||
Pension accounting change — special items (1) | (0.3 | ) | — | — | (0.8 | ) | (1.1 | ) | ||||||||||||
Special items (1) in gross margin — as reported | 11.3 | 4.3 | (8.0 | ) | 4.6 | 12.2 | ||||||||||||||
Gross margin before special items — adjusted | $ | 62.2 | $ | 85.3 | $ | 98.1 | $ | 89.3 | $ | 334.9 | ||||||||||
Gross margin before special items as a percent of sales | 13.4 | % | 17.2 | % | 17.9 | % | 16.2 | % | 16.3 | % | ||||||||||
Operating income (loss) — as reported | $ | (11.1 | ) | $ | 13.9 | $ | 54.9 | $ | 22.4 | $ | 80.1 | |||||||||
Pension accounting change adjustment | 21.0 | 3.2 | 3.0 | 29.8 | 57.0 | |||||||||||||||
Pension accounting change — special items (1) | (17.9 | ) | — | — | (26.4 | ) | (44.3 | ) | ||||||||||||
Special items (1) in operating income — as reported | 16.6 | 4.6 | (27.5 | ) | 1.9 | (4.4 | ) | |||||||||||||
Operating income before special items — adjusted | $ | 8.6 | $ | 21.7 | $ | 30.4 | $ | 27.7 | $ | 88.4 | ||||||||||
Net income (loss) — as reported | $ | (17.7 | ) | $ | (1.9 | ) | $ | 48.3 | $ | 20.8 | $ | 49.5 | ||||||||
Pension accounting change adjustment, after tax | 21.0 | 3.2 | 3.0 | 30.0 | 57.2 | |||||||||||||||
Pension accounting change — special items, after tax (1) | (19.1 | ) | (1.2 | ) | (1.2 | ) | (28.0 | ) | (49.5 | ) | ||||||||||
Special items (1), after tax — as reported | 10.5 | 3.1 | (17.7 | ) | 0.8 | (3.3 | ) | |||||||||||||
Tax adjustments (2) — as reported | (1.6 | ) | 7.3 | (18.0 | ) | (10.8 | ) | (23.1 | ) | |||||||||||
$ | (6.9 | ) | $ | 10.5 | $ | 14.4 | $ | 12.8 | $ | 30.8 | ||||||||||
4
Exhibit 99.1(continued)
PolyOne Corporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures, as Adjusted (Unaudited)
(In millions, except per share data)
Reconciliation of Non-GAAP Financial Measures, as Adjusted (Unaudited)
(In millions, except per share data)
1Q08 | 2Q08 | 3Q08 | 4Q08 | 2008Y | ||||||||||||||||
Reconciliation to Consolidated Statements of Operations | ||||||||||||||||||||
Sales | $ | 713.7 | $ | 748.1 | $ | 735.1 | $ | 541.8 | $ | 2,738.7 | ||||||||||
Gross margin — as reported | 86.2 | 92.3 | 72.0 | 41.5 | 292.0 | |||||||||||||||
Pension accounting change adjustment | 0.2 | 0.1 | 0.1 | (5.4 | ) | (5.0 | ) | |||||||||||||
Pension accounting change — special items (1) | (0.1 | ) | — | — | 5.5 | 5.4 | ||||||||||||||
Special items (1) in gross margin — as reported | 1.6 | 2.7 | 21.9 | 18.7 | 44.9 | |||||||||||||||
Gross margin before special items — adjusted | $ | 87.9 | $ | 95.1 | $ | 94.0 | $ | 60.3 | $ | 337.3 | ||||||||||
Gross margin before special items as a percent of sales | 12.3 | % | 12.7 | % | 12.8 | % | 11.1 | % | 12.3 | % | ||||||||||
Operating income (loss)— as reported | $ | 21.4 | $ | 27.8 | $ | 8.1 | $ | (191.2 | ) | $ | (133.9 | ) | ||||||||
Pension accounting change adjustment | 2.4 | 2.3 | 2.4 | (164.6 | ) | (157.5 | ) | |||||||||||||
Pension accounting change — special items (1) | (0.1 | ) | — | — | 166.3 | 166.2 | ||||||||||||||
Special items (1) in operating income — as reported | 1.6 | 3.8 | 26.7 | 197.9 | 230.0 | |||||||||||||||
Operating income before special items — adjusted | $ | 25.3 | $ | 33.9 | $ | 37.2 | $ | 8.4 | $ | 104.8 | ||||||||||
Net income (loss) — as reported | $ | 7.3 | $ | 11.2 | $ | (1.3 | ) | $ | (277.4 | ) | $ | (260.2 | ) | |||||||
Pension accounting change adjustment, after tax | 1.5 | 1.4 | 1.5 | (161.2 | ) | (156.8 | ) | |||||||||||||
Pension accounting change — special items, after tax (1) | (0.1 | ) | — | — | 162.2 | 162.1 | ||||||||||||||
Special items (1), after tax — as reported | 1.0 | 2.5 | 17.7 | 185.0 | 206.2 | |||||||||||||||
Tax adjustments (2) — as reported | — | — | — | 88.9 | 88.9 | |||||||||||||||
$ | 9.7 | $ | 15.1 | $ | 17.9 | $ | (2.5 | ) | $ | 40.2 | ||||||||||
1Q07 | 2Q07 | 3Q07 | 4Q07 | 2007Y | ||||||||||||||||
Reconciliation to Consolidated Statements of Operations | ||||||||||||||||||||
Sales | $ | 657.8 | $ | 688.8 | $ | 664.8 | $ | 631.3 | $ | 2,642.7 | ||||||||||
Gross margin — as reported | 82.2 | 86.7 | 34.2 | 67.8 | 270.9 | |||||||||||||||
Pension accounting change adjustment | 0.3 | 0.2 | — | 1.4 | 1.9 | |||||||||||||||
Pension accounting change — special items (1) | (0.1 | ) | — | — | (1.2 | ) | (1.3 | ) | ||||||||||||
Special items (1) in gross margin — as reported | 1.0 | 1.3 | 46.6 | 1.3 | 50.2 | |||||||||||||||
Gross margin before special items — adjusted | $ | 83.4 | $ | 88.2 | $ | 80.8 | $ | 69.3 | $ | 321.7 | ||||||||||
Gross margin before special items as a percent of sales | 12.7 | % | 12.8 | % | 12.2 | % | 11.0 | % | 12.2 | % | ||||||||||
Operating income (loss)— as reported | $ | 24.6 | $ | 16.6 | $ | (19.4 | ) | $ | 22.0 | $ | 43.8 | |||||||||
Pension accounting change — non-special | 3.0 | 2.9 | 2.7 | 27.6 | 36.2 | |||||||||||||||
Pension accounting change — special items (1) | (0.1 | ) | — | — | (24.8 | ) | (24.9 | ) | ||||||||||||
Special items (1) in operating income — as reported | 1.0 | 17.5 | 53.6 | 0.6 | 72.7 | |||||||||||||||
Operating income before special items — adjusted | $ | 28.5 | $ | 37.0 | $ | 36.9 | $ | 25.4 | $ | 127.8 | ||||||||||
Net income (loss) — as reported | $ | 6.5 | $ | (2.8 | ) | $ | 4.9 | $ | 9.2 | $ | 17.8 | |||||||||
Pension accounting change adjustment, after tax | 1.9 | 1.8 | 1.7 | 17.7 | 23.1 | |||||||||||||||
Pension accounting change — special items, after tax (1) | (0.1 | ) | — | — | (15.9 | ) | (16.0 | ) | ||||||||||||
Special items (1), after tax — as reported | 0.7 | 15.3 | 41.0 | 0.4 | 57.4 | |||||||||||||||
Tax adjustments (2) — as reported | — | — | (30.5 | ) | (0.2 | ) | (30.7 | ) | ||||||||||||
$ | 9.0 | $ | 14.3 | $ | 17.1 | $ | 11.2 | $ | 51.6 | |||||||||||
(1) | Special items is a non-GAAP financial measure. Special items include charges related to specific strategic initiatives or financial restructurings such as: consolidation of operations; debt extinguishment costs; employee separation costs resulting from personnel reduction programs, plant phaseout costs, executive separation agreements; asset impairments; environmental remediation costs, fines or penalties for facilities no longer owned or closed in prior years; gains and losses on the divestiture of operating businesses, joint ventures and equity investments; gains and losses on facility or property sales or disposals; results of litigation, fines or penalties, where such litigation (or action relating to the fines or penalties) arose prior to the commencement of the performance period; and the effect of changes in tax law, accounting principles or other such laws or provisions affecting reported results or the effect of adverse determinations by regulatory agencies relating to accounting principles or treatment. | |
(2) | Net tax (benefit) loss from one-time foreign and domestic income tax items and deferred income tax valuation allowance adjustments on deferred tax assets |
5