Investor Presentaiton
Reconciliation: Leasing Group Pre-Tax ROE
Numerator:
Operating profit
December 31,
2018
2019
($ in millions)
$ 351.1
(142.3)
208.8
(3.8)
$ 406.6
(197.2)
209.4
1.5
Interest expense
Income from continuing operations before tax
Net (income) loss attributable to noncontrolling interest
Adjusted Profit Before Tax - Leasing Group
$ 205.0
Denominator:
Total Equity - Leasing Group
Average Total Equity - Leasing Group
Pre-Tax ROE - Leasing Group
(1)
$ 210.9
$1,508.5
$1,544.9
$1,526.7
13.8%
(1) Pre-Tax Return on Equity - Leasing Group is calculated as adjusted profit before tax - Leasing Group divided by average total equity - Leasing Group, each as defined and reconciled above.
Pre-Tax Return on Equity - Leasing Group ("Pre-Tax ROE - Leasing Group") is a non-GAAP measure that is derived from amounts included in our GAAP financial statements. We define Pre-Tax
ROE - Leasing Group as a ratio for which (i) the numerator is calculated as operating profit adjusted to deduct interest expense and to exclude the effects of net income or loss attributable to
noncontrolling interest, and (ii) the denominator is calculated as average equity (which excludes noncontrolling interest).
In the table above, the numerator of our Pre-Tax ROE - Leasing Group calculation is reconciled to income from continuing operations before tax, which is the GAAP financial measure used in the
computation of ROE.
Management believes that the Pre-Tax ROE - Leasing Group is a useful measure to both management and investors as it provides an indication of the economic return on the Leasing Group's
investments over time. Non-GAAP measures should not be considered in isolation or as a substitute for our reporting results prepared in accordance with GAAP and, as calculated, may not be
comparable to other similarly titled measures for other companies.
TRINITY INDUSTRIES
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