Investor Presentaiton
Historical Adjusted Operating Income Reconciliation (unaudited)
Fiscal 2021
(In thousands)
Operating income (loss) - As reported
% of Revenue
2018
2019
2020
Q1
Q2
Q3
Q4
2021
Q1
Fiscal 2022
(4)
Q2
2022 (4)
$
337,129
8.4%
$ 233,345 $ (271,345)
5.4%
-7.2%
133,427
12.9%
$ 167,996
14.1%
$
209,687
16.5%
79,954
$ 591,065 $
5.3%
11.8%
41,902
4.0%
14,014
1.2%
$
55,916
2.5%
Incremental COVID-19 related expenses
Severance and related employee costs
Joint business venture exit charges
Japan market transition costs
China restructuring (3)
Long-lived asset impairment charges
(1)
(2)
66,252
249,163
11,944
11,944
26,930
1,568
6,691
3,733
4,194
1,814
1,543
Operating income (loss) - Adjusted
% of Revenue
$
338,698
8.4%
$
313,839
7.3%
$
8,481
0.2%
$
133,427 $
12.9%
167,996
14.1%
$
209,687
16.5%
$
91,898
6.1%
$
603,009
12.0%
$
41,902
4.0%
$
14,014
1.2%
$
55,916
2.5%
(1) In fiscal 2021, the Company recorded impairment charges of $11.9 million primarily related to store property and equipment and operating lease ROU assets. In fiscal 2020, the Company recorded impairment charges of $249.2 million.
Included in this amount are retail store impairment charges of $203.2 million, of which $154.8 million relates to operating lease ROU assets and $48.4 million relates to store property and equipment (fixtures and equipment and leasehold
improvements). We also recorded $28.0 million related to the impairment of certain corporate property and equipment, as well as $18.0 million of certain cost and equity method investments. In fiscal 2019, the Company recorded asset
impairment charges of $64.5 million on the assets of 20 retail stores. Of the total, $39.5 million related to the impairment of leasehold improvements and store fixtures, and $25.0 million related to the impairment of operating lease ROU assets.
The Company also concluded that certain goodwill was impaired resulting in a $1.7 million charge in fiscal 2019.
(2) Incremental COVID-19 related expenses consisted of personal protective equipment and supplies for our associates and customers.
(3) Pre-tax corporate restructuring charges of $1.5 million, primarily consisted of severance and closure costs for our company-owned and operated stores in China recorded in the first quarter of fiscal 2019.
(4) GAAP results for Q2 2022 and YTD 2022 included $60.1 million of pre-tax debt related charges related primarily to the induced conversion expense relating to the Note Exchange, along with certain other costs related to actions taken to
strengthen our capital structure, which was recorded below Operating income (loss).View entire presentation