Better Food. Better Future.
Reconciliation - Adjusted Effective Tax Rate
U.S. GAAP effective tax rate
Discrete quarterly recognition of GAAP items(¹)
Tax impact of other charges and adjustments
Changes in valuation allowances (3)
Adjusted effective tax rate (4)
(2)
Estimated
Fiscal 2022
Actual Fiscal
2021
22 %
18 %
4 %
6%
%
3%
-%
(1)%
26 %
26 %
Note: As part of the year-end reconciliation, we update the reconciliation of the GAAP effective tax rate for actual results.
(1) Reflects changes in tax laws excluding the CARES Act, uncertain tax positions, the tax impacts related to the exercise of share-
based compensation awards and any prior-year deferred tax or payable adjustments. This includes prior-year Internal Revenue
Service or other tax jurisdiction audit adjustments.
Reflects the tax impact of pre-tax adjustments other than the goodwill impairment that are excluded from pre-tax income when
calculating adjusted EPS.
(3) Reflects changes in valuation allowances related to changes in judgment regarding the realizability of deferred tax assets or current
year operations.
(4) The Company establishes an estimated adjusted effective tax rate at the beginning of the fiscal year based on the best available
information. The Company re-evaluates its estimated adjusted effective tax rate as appropriate throughout the year and adjusts for
any material changes. The actual adjusted effective tax rate at the end of the fiscal year is based on actual results and accordingly
may differ from the estimated adjusted effective tax rate used during the year.
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Better Food. Better Future.
The non-GAAP adjusted effective tax rate excludes the potential impact of changes to various uncertain tax positions and valuation
allowances, as well as stock compensation accounting (ASU 2016-09).View entire presentation