Impact of Additional Week on Net Sales slide image

Impact of Additional Week on Net Sales

STE connectivity Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Nine Months Ended June 24, 2022 Acquisition- Related U.S. GAAP (1) Charges Adjustments Restructuring and Other Charges, Net (1)(2) Tax Items (3) Adjusted (Non-GAAP) (4) ($ in millions, except per share data) Operating income: Transportation Solutions $ 1,187 $ Industrial Solutions 430 22 12 $ 12 $ $ 1,211 24 47 501 Communications Solutions 479 2 16 497 Total $ 2,096 $ 38 $ 75 $ $ 2,209 Operating margin 17.6 % 18.5 % Other income, net $ 24 $ $ $ $ 13 Income tax expense $ (362) $ (8) $ (18) $ (18) EA (406) Effective tax rate 17.4 % 18.6 % Income from continuing operations S 1,719 $ 30 $ 57 $ (29 $ 1,777 Diluted earnings per share from continuing operations $ 5.26 $ 0.09 $ 0.17 $ (0.09) $ 5.43 22 22 (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) (3) Includes $59 million recorded in net restructuring and other charges and $16 million recorded in cost of sales. Includes a $57 million income tax benefit related to the tax impacts of an intercompany transaction, $27 million of income tax expense related to the write-down of certain deferred tax assets to the lower 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 indemnification terms of the purchase agreement. (4) See description of non-GAAP financial measures.
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