The Company calculates: (1) its "after-tax GAAP operating income" by subtracting a certain tax effect (the calculation of which is explained below) from its GAAP operating income and (2) its "after-tax non-GAAP core operating income" by subtracting a certain tax effect (the calculation of which is explained below) from its non-GAAP core operating income. See elsewhere in this earnings release for a reconciliation of the Company's non-GAAP core operating income to its GAAP operating income.
The Company calculates "net invested capital asset base" as the sum of the averages (the calculation of which are explained below) of (1) its stockholders’ equity, (2) the non-current portion of its notes payable and long term debt and (3) the current portion of its notes payable and long term debt, less the average (the calculation of which is explained below) of its cash and cash equivalents.
The following table reconciles (1) "Return on Invested Capital," as calculated using "after-tax GAAP operating income" to (2) "Core Return on Invested Capital," as calculated using "after-tax non-GAAP core operating income":
|Three monthsended||Three monthsended|
|November 30,||November 30,|
|Operating income (GAAP)||$||170,281||$||170,842|
|Tax effect (1)||(34,292||)||(29,852||)|
|After-tax operating income||135,989||140,990|
|Annualized after-tax operating income||$||543,956||$||563,960|
|Core Operating Income (Non-GAAP)||$||192,535||$||194,581|
|Tax effect (2)||(34,602||)||(30,204||)|
|After-tax core operating income||157,933||164,377|
|Annualized after-tax core operating income||$||631,732||$||657,508|
|Average total Jabil Circuit, Inc. stockholders’ equity (3)||$||2,089,385||$||1,882,810|
|Average notes payable and long-term debt, less current installments (3)||1,657,192||1,112,560|
|Average current installments of notes payable and long-term debt (3)||13,841||79,010|
|Average cash and cash equivalents (3)||(1,123,645||)||(875,258||)|
|Net invested capital asset base||$||2,636,773||$||2,199,122|
|Return on Invested Capital (GAAP)||20.6||%||25.6||%|
|Adjustments noted above||3.4||%||4.3||%|
|Core Return on Invested Capital (Non-GAAP)||24.0||%||29.9||%|
|(1)||This amount is calculated by adding the amount of income taxes attributable to its operating income (GAAP) and its interest expense.|
|(2)||This amount is calculated by adding the amount of income taxes attributable to its core operating income (Non-GAAP) and its interest expense.|
|(3)||The average is based on the addition of the account balance at the end of the most recently-ended quarter to the account balance at the end of the prior quarter and dividing by two.|
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