Better Food. Better Future.
Calculation - Net Debt to Adjusted EBITDA Leverage Ratio
(in millions, except ratios)
Projected Q4
Q2 FY21
Q3 FY21
Q4 FY21
Q1 FY22
Q2 FY22
FY22 (2)
$
2,374 $
2,314 $
2,175 $
2,376
$
2,309
135
133
35
121
30
25
24
120
32
122
(41)
(40)
(41)
(46)
(45)
2,493
2,431
2,289
2,483
2,416
2,114
$
785 $
3.2x
743 $
3.3x
746 $
776 $
771 $
775
3.1x
3.2x
3.1x
2.7x
Long-term debt
Long-term finance lease liabilities
Current portion of long-term debt and finance lease liabilities
Less: Cash and cash equivalents
Net carrying value of debt and finance lease liabilities
Adjusted EBITDA (¹)
Adjusted EBITDA leverage ratio
(1) Adjusted EBITDA reflects the summation of the trailing four quarters.
(2) Reflects midpoint of guidance for reduction in net debt and Adjusted EBITDA
The non-GAAP adjusted EBITDA leverage ratio is defined as the face value of outstanding debt less cash and cash equivalents divided by the trailing four quarters adjusted EBITDA (the definition of
which is shown on slide 12).
Beginning in the fourth quarter of fiscal 2021, the calculation of Adjusted EBITDA leverage ratio was updated to utilize the Net carrying value of debt and finance lease liabilities in the numerator of the
calculation, which is net of the original issue discount on debt and debt finance costs. Historically, the calculation of Adjusted EBITDA leverage ratio added back the original issue discount on debt and
debt finance costs, which had the impact of increasing the numerator of the net debt balance utilized in the calculation. The Company believes this new method better reflects how investors analyze
our debt and leverage positions.
17
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