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,
2012 2011
Numerator:
Operating income (GAAP) $ 170,281 $ 170,842
Tax effect (1)   (34,292 )     (29,852 )
After-tax operating income 135,989 140,990
x4     X4  
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
x4     X4  
Annualized after-tax core operating income $ 631,732     $ 657,508  
 
Denominator:
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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