Exhibit 11.2
Supplemental Information
GAAP Reconciliation
The company has provided certain non-GAAP financial measures that exclude the effect of exit and realignment charges incurred in the fourth quarter of 2011 and a pension settlement charge incurred in the fourth quarter of 2010, as the charges are unusual in the company’s history. Management has provided these non-GAAP measures as an additional tool for investors to evaluate the company’s financial performance. These measures should be considered in addition to, rather than as a substitute for, GAAP measures of the company’s performance. The following table reconciles these non-GAAP financial measures to the most closely related GAAP measure.
| (in thousands except per share amounts) | ||||||||||||||||
Year ended December 31, | 2011 | 2010 | ||||||||||||||
| GAAP | Adjusted Non-GAAP | GAAP | Adjusted Non-GAAP | |||||||||||||
Operating earnings | $ | 203,515 | $ | 203,515 | $ | 195,936 | $ | 195,936 | ||||||||
Non-GAAP adjustments: | ||||||||||||||||
Exit and realignment charges | — | 12,708 | — | — | ||||||||||||
Pension settlement charge | — | — | — | 19,573 | ||||||||||||
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Adjusted operating earnings | $ | 203,515 | $ | 216,223 | $ | 195,936 | $ | 215,509 | ||||||||
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Numerator: | ||||||||||||||||
Net income | $ | 115,198 | $ | 115,198 | $ | 110,579 | $ | 110,579 | ||||||||
Non-GAAP adjustments: | ||||||||||||||||
Exit and realignment charges, net of tax(1) | — | 7,714 | — | — | ||||||||||||
Pension settlement charge, net of tax(2) | — | — | — | 11,918 | ||||||||||||
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Adjusted net income | 115,198 | 122,912 | 110,579 | 122,497 | ||||||||||||
Less: income allocated to unvested restricted shares | (1,059 | ) | (1,117 | ) | (1,167 | ) | (1,267 | ) | ||||||||
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Net income attributable to common shareholders - basic | 114,139 | 121,795 | 109,412 | 121,230 | ||||||||||||
Add: undistributed income attributable to unvested restricted shares - basic | 480 | 538 | 555 | 655 | ||||||||||||
Less: undistributed income reallocated to unvested restricted shares - diluted | (479 | ) | (537 | ) | (553 | ) | (653 | ) | ||||||||
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Net income attributable to common shareholders - diluted | $ | 114,140 | $ | 121,796 | $ | 109,414 | $ | 121,232 | ||||||||
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Denominator: | ||||||||||||||||
Weighted average shares outstanding - diluted | 62,924 | 62,924 | 62,563 | 62,563 | ||||||||||||
Net income per diluted share attributable to common shareholders | $ | 1.81 | $ | 1.94 | $ | 1.75 | $ | 1.94 | ||||||||
| (1) | Calculated using an effective tax rate of 39.3% for 2011 |
| (2) | Calculated using an effective tax rate of 39.1% for 2010 |