Impact of Additional Week on Net Sales slide image

Impact of Additional Week on Net Sales

Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 30, 2022 Acquisition- Related U.S. GAAP Charges (1) Adjustments Restructuring and Other Charges, Net (1)(2) Tax Items ($ in millions, except per share data) (3) Adjusted (Non-GAAP) (4) STE connectivity Operating income: Transportation Solutions $ 1,534 $ 16 $ 68 $ $ 1,618 Industrial Solutions 607 32 66 705 Communications Solutions 615 5 23 643 Total $ 2,756 $ 53 $ 157 $ $ 2,966 16.9 % 18.2 % Operating margin Other income, net $ 28 $ $ $ 17 Income tax expense $ (306) $ (11) $ (34) $ (200) $ (551) Effective tax rate 11.2 % 18.8 % Income from continuing operations $ 2,427 $ 42 $ 123 $ (211) $ 2,381 Diluted earnings per share from continuing operations $ 7.47 $ 0.13 $ 0.38 $ (0.65) $ 7.33 (1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction. (2) Includes $141 million recorded in net restructuring and other charges and $16 million recorded in cost of sales. (3) Includes a $124 million income tax benefit related to the tax impacts of certain intercompany transactions, a $64 million income tax benefit related primarily to a lapse of a statute of limitation, and a $51 million income tax benefit related to the release of a valuation allowance associated primarily with improved current and expected future operating profit and taxable income. Also includes $27 million of income tax expense related to the write-down of certain deferred tax assets to the lower corporate tax rate enacted in the canton of Schaffhausen and $12 million of income tax expense related to an income tax audit of an acquired entity, as well as the related impact of $11 million to other income pursuant to the terms of the purchase agreement. (4) 24 See description of non-GAAP financial measures.
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