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Jabil Posts Second Quarter Results

JABIL CIRCUIT, INC. AND SUBSIDIARIES SUPPLEMENTAL DATA RECONCILIATION OF GAAP FINANCIAL RESULTS TO NON-GAAP MEASURES (in thousands) (Unaudited)

CALCULATION OF RETURN ON INVESTED CAPITAL AND

CORE RETURN ON INVESTED CAPITAL

The Company calculates (1) "Return on Invested Capital" by annualizing its "after-tax GAAP operating income" for its most recently-ended quarter and dividing that by a two quarter average of its "net invested capital asset base" and (2) "Core Return on Invested Capital" by annualizing its "after-tax non-GAAP core operating income" for its most recently-ended quarter and dividing that by a two quarter average of its "net invested capital asset base."

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 calculations 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 months ended

February 28,

  February 29,
2013   2012  
Numerator:
Operating income (GAAP) $ 149,041 $ 150,218
Tax effect (1)   (30,930 )   (24,340 )
After-tax operating income 118,111 125,878
x4 x4
Annualized after-tax operating income $ 472,444   $ 503,512  
 
Core operating income (Non-GAAP) $ 170,222 $ 176,158
Tax effect (2)   (31,258 )   (24,777 )
After-tax core operating income 138,964 151,381
x4 x4
Annualized after-tax core operating income $ 555,856   $ 605,524  
 
Denominator:
Average total Jabil Circuit, Inc. stockholders’ equity (3) $ 2,124,908 $ 1,949,666
Average notes payable and long-term debt, less current installments (3) 1,654,883 1,112,501
Average current installments of notes payable and long-term debt (3) 59,624 182,731
Average cash and cash equivalents (3)   (1,045,845 )   (784,627 )
Net invested capital asset base $ 2,793,570   $ 2,460,271  
 
Return on Invested Capital (GAAP) 16.9 % 20.5 %
Adjustments noted above 3.0 % 4.1 %
Core Return on Invested Capital (Non-GAAP) 19.9 % 24.6 %
 

(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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