CMS Separation Overview
Reconciliation of GAAP to Adjusted Results
Reconciliation of Earnings from Continuing Operations Before Taxes to Adjusted Earnings from Continuing Operations
Before Taxes (in thousands)
32
32
Three Months Ended
Nine Months Ended
June 30, 2023
July 1, 2022
June 30, 2023
July 1, 2022
Earnings from Continuing Operations Before
Taxes
226,685 $
272,115
676,478 $
596,485
Restructuring, Transaction and Other
Charges (1):
Focus 2023 Transformation, mainly real
estate rescaling efforts
1,129
2,202
39,296
76,934
Transaction costs
4,062
5,442
15,613
18,204
Restructuring, integration, separation and
other charges
29,783
2,375
38,900
105,166
Other Adjustments (2):
Amortization of intangibles
Other
Adjusted Earnings from Continuing
Operations Before Taxes
$
51,985
4,016
317,660 $
51,551
333,685
$
152,232
5,142
927,661 $
146,889
5
943,683
(1) Includes pre-tax non-cash charges relating to the Company's investment in PA Consulting and relating to the separation activities around
the CMS spin-off for the three- and nine-months ended June 30, 2023, along with real estate impairments charges associated with the
Company's Focus 2023 transformation program of $0.9 million and $-million for the three-months ended June 30, 2023 and July 1, 2022,
respectively, and $38.1 million and $74.6 million for the nine-months ended June 30, 2023 and July 1, 2022, respectively. The nine months
ended July 1, 2022 includes $91.3 million related to the final pre-tax settlement of the Legacy CH2M Matter, net of previously recorded
reserves. Also includes charges associated with various transaction costs incurred with our acquisition and restructuring related activity
associated with Company restructuring and integration programs.
(2) Includes pre-tax charges for the removal of amortization of intangible assets for the three- and nine-months ended June 30, 2023 and
July 1, 2022, respectively, and the impact of certain subsidiary level contingent equity-based agreements in connection with the transaction
structure of our PA Consulting investment of $4.0 million and $5.1 million for the three- and nine-months ended June 30, 2023.
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