Investor Presentaiton
Reconciliation of Net Income (Loss) (GAAP) to Adjusted Earnings (Loss) (Non-GAAP)
In millions, except per data (unaudited)
Net income (loss)
Less: Net income (loss) attributable to noncontrolling interests
Net income (loss) attributable to Ingevity stockholders (GAAP)
Restructuring and other (income) charges (1)
Separation costs (2)
Acquisition costs (3)
Tax effect on items above
Tax benefit from U.S. Tax Reform
Adjusted earnings (loss) (Non-GAAP)
Diluted earnings (loss) per common share (GAAP)
Restructuring and other (income) charges
Separation costs
Acquisition costs
Tax effect on items above
Tax benefit from U.S. Tax Reform
Diluted adjusted earnings (loss) per share (Non-GAAP)
Average number of shares outstanding used in
diluted adjusted after-tax earnings per share computations
Twelve Months Ended
December 31,
2017
2016
$
145.0 $
44.4
18.7
9.2
126.3
35.2
3.7
41.2
0.9
17.5
7.1
(3.6)
(5.9)
(24.5)
$
109.9 $
88.0
$
2.97 $
0.83
0.09
0.98
0.02
0.41
0.17
(0.09)
(0.14)
(0.58)
$
2.58 $
2.08
42.5
42.3
(1) In January 2017, we initiated a reorganization to streamline our leadership team, flatten the organization and reduce costs. As a result of this reorganization, we recorded zero and $1.3 million, in
severance and other employee-related costs for the three and twelve months ended December 31, 2017, respectively. During the three and twelve months ended December 31, 2017, respectively, we
also recorded $0.2 million and $2.4 million of additional miscellaneous exit costs primarily associated with the exit of our Performance Chemicals' manufacturing operations in Palmeira, Santa
Catarina, Brazil which began in the fourth quarter of 2016. Charges incurred during 2016 primarily related to restructuring activities within our Brazilian Performance Chemicals operations. Charges
for the three months ended December 31, 2016 were comprised of miscellaneous exit costs of $2.9 million. Charges for the twelve months ended December 31, 2016 were comprised of asset write-
downs, including the asset impairment charge of $30.2 million, accelerated depreciation of $0.4 million, $7.0 million in severance related charges, and miscellaneous exit costs of $3.6 million.
(2) In connection with the separation from WestRock we have incurred pre-tax separation costs. These costs were primarily related to professional fees associated with separation activities within the
finance, tax and legal functions.
(3) Charges primarily relate to legal and professional fees incurred associated with the planned acquisition of Georgia Pacific's Pine Chemicals Business.
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