(2) Merchandise margin is a measurement calculated by dividing the difference between merchandise sales and merchandise cost of products sold by merchandise sales. Merchandise margin is a measure frequently used in the convenience store industry to measure operating results related to merchandise sales.
(3) During the twelve months ended December 31, 2012, we added 13 retail outlets. We did not add any retail outlets during the fourth quarter of 2012.
Reconciliation of Special Items
We present certain additional financial measures below that are non-GAAP measures within the meaning of Regulation G under the Securities Exchange Act of 1934.We present these non-GAAP measures to provide investors with additional information to analyze our performance from period to period. We believe it is useful for investors to understand our financial performance excluding these special items so that investors can see the operating trends underlying our business. Investors should not consider these non-GAAP measures in isolation from, or as a substitute for, the financial information that we report in accordance with GAAP. These non-GAAP measures reflect subjective determinations by management and may differ from similarly titled non-GAAP measures presented by other companies.
|Three Months Ended||Year Ended|
|December 31,||December 31,|
|(In thousands, except per share data)|
|Reported diluted earnings (loss) per share||$1.92||$(0.72)||$3.71||$1.34|
|Earnings (loss) before income taxes||$322,360||$(104,804)||$617,087||$202,528|
|Loss and impairments on disposal of assets, net||—||450,796||—||450,796|
|Unrealized (gain) loss from hedging future production||(81,519)||(298,199)||229,672||(183,286)|
|Loss on extinguishment of debt||—||29,695||7,654||34,336|
|Earnings before income taxes excluding special items||240,841||77,488||854,413||504,374|
|Recomputed income taxes after special items||(85,161)||(26,729)||(302,120)||(173,981)|
|Net income excluding special items||$155,680||$50,759||$552,293||$330,393|
|Diluted earnings per share excluding special items||$1.45||$0.50||$5.08||$3.14|
CONTACT: Investor and Analyst Contact: Jeffrey S. Beyersdorfer (602) 286-1530 Media Contact: Gary W. Hanson (602) 286-1777