Better Food. Better Future. slide image

Better Food. Better Future.

Reconciliation - Adjusted EPS 13 Better Food. Better Future. 13-Week Period Ended 26-Week Period Ended January 29, January 30, January 29, January 30, 2022 2021 2022 2021 Net income attributable to UNFI per diluted common share Restructuring, acquisition and integration related expenses S 1.08 S 1.00 S 2.33 S 0.98 0.06 0.30 0.12 0.58 Loss on sale of assets 0.02 0.01 0.02 Surplus property depreciation and interest expense (2) 0.01 0.02 0.03 0.03 Multi-employer pension plan withdrawal benefit(3) (0.13) (0.13) Loss on debt extinguishment(4) 0.09 0.10 0.09 0.50 Other retail expense (5) (0.01) 0.02 (0.01) 0.05 Discontinued operations store closures and other charges, net (6) 0.02 0.02 Tax impact of adjustments and adjusted effective tax rate 0.01 (0.22) (0.35) (0.40) Adjusted net income per diluted common share(3) S 1.13 $ 1.25 $ 2.10 1.76 (1) Fiscal 2021 primarily reflects costs associated with advisory and transformational activities as we position our business for further value-creation following the Supervalu acquisition. (2) Reflects surplus, non-operating property depreciation and interest expense. (3) Reflects an adjustment to multi-employer withdrawal charge estimates. (4) Reflects non-cash charges related to the acceleration of unamortized debt issuance costs and original issue discounts due to termi loan prepayments. (5) Reflects expenses associated with event-specific damages to certain retail stores and store closure costs. (6) Amounts represent store closure charges and costs, operational wind-down and inventory charges, and asset impairment charges related to discontinued operations. (7) Represents the tax effect of the pre-tax adjustments using an adjusted effective tax rate. The adjusted effective tax rate is calculated based on adjusted net income before tax, and its impact reflects the exclusion of changes to uncertain tax positions, valuation allowances, tax impacts related to the exercise of share-based compensation awards and discrete GAAP tax items which could impact the comparability of the operational effective tax rate. The Company believes using this adjusted effective tax rate will provide better consistency across the interim reporting periods since each of these discrete items can cause volatility in the GAAP tax rate that is not indicative of the true operations of the Company. By providing this non-GAAP measure, management intends to provide investors with a meaningful, consistent comparison of the Company's effective tax rate on ongoing operations. (8) The computation of diluted eamings per share is calculated using diluted weighted average shares outstanding, which includes the net effect of dilutive stock awards. Note - See slide 14 for definition of adjusted EPS
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