Capital Allocation and Fiscal Year 2023 Targets
Reconciliations
Results Excluding Impairment Loss (Loss Recovery), Restructuring Costs, Inventory Write-downs, and Other Charges
To supplement MSC Industrial's unaudited selected financial data presented consistent with accounting principles generally accepted in the
United States ("GAAP"), the Company discloses certain non-GAAP financial measures, including non-GAAP gross profit, non-GAAP
operating expenses, non-GAAP income from operations, non-GAAP operating margin, non-GAAP provision for income taxes, non-GAAP net
income and non-GAAP diluted earnings per share, that exclude impairment losses (loss recovery), restructuring costs, inventory write-downs
related to certain PPE inventory, and other related costs and tax effects.
These non-GAAP financial measures are not presented in accordance with GAAP or an alternative for GAAP financial measures and may be
different from similar non-GAAP financial measures used by other companies. The presentation of this additional information is not meant to
be considered in isolation or as a substitute for the most directly comparable GAAP financial measures and should only be used to evaluate
MSC Industrial's results of operations in conjunction with the corresponding GAAP financial measures.
In calculating non-GAAP financial measures, we exclude impairment losses (loss recovery), restructuring costs, inventory write-downs
related to certain PPE inventory, and other related costs and tax effects. Management makes these adjustments to facilitate a review of the
Company's operating performance on a comparable basis between periods, for comparison with forecasts and strategic plans, for identifying
and analyzing trends in the Company's underlying business and for benchmarking performance externally against competitors. We believe
that investors benefit from seeing results from the perspective of management in addition to seeing results presented in accordance with
GAAP for the same reasons and purposes for which management uses such non-GAAP financial measures.
MSC
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