Non-GAAP
Reconciliations
Reconciliation of Reported (GAAP)
to Adjusted (non-GAAP) Financial Measures1
(Dollar amounts in millions, except per share data)
2019 2018 2017 2016 2015 2014
Non-GAAP adjustments, Continuing Operations            
Restructuring-related charges
$15
$16
$-
$-
$-
$-
ECS transaction costs 1 7 - - - -
Note impairment - 16 - - - -
Gain from sale of real estate - - (23) - - -
Pension settlement charge - - 15 - 12 -
Impairment charges - - 5 4 6 -
Gain/loss from sale of businesses - - 3 (27) - -
Benefit from litigation settlement proceeds - - - (7) - -
Litigation accrual - - - - 6 54
Non-GAAP adjustments, pre-tax 16 39 - (30) 23 54
Income tax impact (2) (7) - 12 (9) (21)
Special tax items - (2) 42 - - -
Non-GAAP adjustments, after tax
$14
$30
$42
$(18)
$15
$33
Diluted shares outstanding 135.4 135.2 137.3 140.0 142.9 143.2
EPS impact of non-GAAP adjustments
$0.10
$0.22
$0.32
$(0.13)
$0.09
$0.23
Adjusted EBIT, EBITDA, Margin, and EPS            
Net sales from continuing operations
$4,753
$4,270
$3,944
$3,750
$3,917
$3,782
EBIT (earnings before interest and taxes)
$513
$437
$468
$522
$487
$332
Non-GAAP adjustments, pre-tax and excluding interest2 16 36 - (30) 23 54
Adjusted EBIT
$529
$473
$468
$492
$510
$386
EBIT margin 10.8% 10.2% 11.9% 13.9% 12.4% 8.8%
Adjusted EBIT margin 11.1% 11.1% 11.9% 13.1% 13.0% 10.2%
EBIT
$513
$437
$468
$522
$487
$332
Depreciation 118 104 95 87 84 90
Amortization 74 32 31 29 30 28
EBITDA 705 573 594 637 600 450
Non-GAAP adjustments, pre-tax and excluding interest2 16 36 - (30) 23 54
Adjusted EBITDA
$721
$609
$594
$607
$623
$504
EBITDA margin 14.8% 13.4% 15.1% 17.0% 15.3% 11.9%
Adjusted EBITDA margin 15.2% 14.3% 15.1% 16.2% 15.9% 13.3%
Diluted EPS from continuing operations
$2.47
$2.26
$2.14
$2.62
$2.27
$1.55
EPS impact of non-GAAP adjustments 0.10 0.22 0.32 (0.13) 0.09 0.23
Adjusted EPS from continuing operations
$2.57
$2.48
$2.46
$2.49
$2.36
$1.78
Dividend Payout Ratio            
Diluted EPS from continuing operations
$2.47
$2.26
$2.14
$2.62
$2.27
$1.55
EPS impact of non-GAAP adjustments 0.10 0.22 0.32 (0.13) 0.09 0.23
Adjusted EPS from continuing operations
$2.57
$2.48
$2.46
$2.49
$2.36
$1.78
Annual dividend per share
$1.58
$1.50
$1.42
$1.34
$1.26
$1.22
Dividend payout % of diluted EPS from cont. ops. 64% 66% 66% 51% 56% 79%
Dividend payout % of adjusted EPS from cont. ops. 61% 60% 58% 54% 53% 69%
Debt to Adjusted EBITDA            
Current maturities of long-term debt
$51
$1
$154
$4
$3
$202
Long-term debt 2,067 1,168 1,098 956 942 762
Total debt
$2,118
$1,169
$1,252
$960
$945
$964
Adjusted EBITDA 721 609 594 607 623 504
Debt to adjusted EBITDA 2.9x 1.9x 2.1x 1.6x 1.5x 1.9x
Return on Invested Capital            
EBIT
$513
$437
$468
$522
$487
$332
Non-GAAP adjustments, pre-tax and excluding interest2 16 36 - (30) 23 54
Adjusted EBIT
$529
$473
$468
$492
$510
$386
 Less: taxes (117) (98) (104) (117) (141) (101)
NOPAT (net operating profit after tax)
$412
$375
$364
$375
$369
$285
Total debt
$2,118
$1,169
$1,252
$960
$945
$964
Operating lease liabilities3 161 - - - - -
Equity 1,313 1,158 1,191 1,094 1,098 1,155
Less: cash and cash equivalents (248) (268) (526) (282) (253) (333)
Invested capital
$3,343
$2,059
$1,917
$1,772
$1,790
$1,786
Average invested capital 2,701 1,988 1,844 1,781 1,788 1,891
ROIC (Return on invested capital) 15.3% 18.9% 19.7% 21.1% 20.6% 15.1%