Reconciliations of Non-GAAP Financial Measures - Adjusted Income from Operations, Adjusted Net Income, Adjusted Diluted Earnings Per Share and Adjusted Diluted Earnings Per Pro Forma Share

The following table reconciles Adjusted income from operations, Adjusted net income attributable to Bloomin' Brands, Inc., Adjusted diluted earnings per share and Adjusted diluted earnings per pro forma share, for the three and six months ended June 30, 2013 and 2012 to their respective most comparable U.S. GAAP measures (in thousands, except per share amounts):
  THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
  2013 2012 2013 2012
Income from operations  $ 67,886  $ 48,720  $ 164,746  $ 139,128
Transaction-related expenses (1) 704 704 6,761
Management fees and expenses (2) 2,291 4,617
Adjusted income from operations  $ 68,590  $ 51,011  $ 165,450  $ 150,506
         
Net income attributable to Bloomin' Brands, Inc.  $ 74,868  $ 17,440  $ 138,091  $ 67,439
Transaction-related expenses (1) 704 704 6,761
Management fees and expenses (2) 2,291 4,617
Loss on extinguishment and modification of debt (3) 14,586 14,586 2,851
Total adjustments, before income taxes 15,290 2,291 15,290 14,229
Adjustment to (benefit) provision for income taxes (4) (58,370) (426) (58,370) (2,647)
Net adjustments (43,080) 1,865 (43,080) 11,582
Adjusted net income attributable to Bloomin' Brands, Inc.  $ 31,788  $ 19,305  $ 95,011  $ 79,021
         
Diluted earnings per share  $ 0.58  $ 0.16  $ 1.08  $ 0.63
Adjusted diluted earnings per share  $ 0.25  $ 0.18  $ 0.74  $ 0.74
Adjusted diluted earnings per pro forma share  $ 0.25  $ 0.16  $ 0.74  $ 0.65
         
Diluted weighted average common shares outstanding 128,338 107,380 127,599 107,255
Pro forma IPO adjustment (5) 14,197 14,197
Pro forma diluted weighted average common shares outstanding (5) 128,338 121,577 127,599 121,452
_________________        
(1)  Transaction-related expenses primarily relate to costs incurred in association with the secondary offering of the Company's common stock completed in May 2013 and the refinancing of the 2012 CMBS Loan in March 2012. 
(2)  Represents management fees, out-of-pocket expenses and certain other reimbursable expenses paid to a management company owned by the sponsors and founders under a management agreement with the Company. In accordance with the terms of an amendment, this agreement terminated immediately prior to the completion of the IPO in August 2012.
(3)  Loss on extinguishment and modification of debt is related to the repricing of OSI Restaurant Partner, LLC's term loan B facility in April 2013 and the extinguishment of the previous CMBS loan in connection with New Private Restaurant Properties, LLC, and two of the Company's other indirect wholly-owned subsidiaries, entering into the 2012 CMBS loan in March 2012.
(4)  Adjustment to (benefit) provision for income taxes for the three and six months ended June 30, 2013 represents an adjustment to the (Benefit) provision for income taxes to apply a normalized annual effective income tax rate, which excludes the income tax benefit of the valuation allowance release, to Adjusted income before (benefit) provision for income taxes. The normalized 2013 full-year tax rate is more comparable to the Company's expectation for future effective income tax rates. The Company's expected future effective income tax rate is lower than the U.S. blended federal and state statutory rate because of the continued generation of U.S. tax credits and expected earnings in foreign jurisdictions with lower income tax rates. See calculation below of the income tax effect of adjustments for the three and six months ended June 30, 2013. Adjustment to (benefit) provision for income taxes for the three and six months ended June 30, 2012 was calculated using the projected full-year effective income tax rate of 18.6%. 
  THREE MONTHS ENDED JUNE 30, 2013 SIX MONTHS ENDED JUNE 30, 2013
Income before (benefit) provision for income taxes  $ 35,152  $ 110,915
Transaction-related expenses 704 704
Loss on extinguishment and modification of debt 14,586 14,586
Adjusted income before (benefit) provision for income taxes 50,442 126,205
Income tax expense at normalized tax rate of approximately 33.8% and 22.0% for the three and six months ended June 30, 2013, respectively (a) 17,058 27,765
Less: (Benefit) provision for income taxes (41,312) (30,605)
Adjustment to (benefit) provision for income taxes  $ 58,370  $ 58,370
_________________    
(a) Due to the second quarter 2013 income tax valuation allowance release, the Company utilized a normalized annual effective tax rate of 22.0% for the six months ended June 30, 2013. As a result, the Adjustment to (benefit) provision for income taxes for the three months ended June 30, 2013 includes approximately $6.0 million of higher income tax effect for the true-up of a normalized tax rate treatment on the first quarter of 2013 which, as previously reported, did not include any adjustments. Excluding the effect of this true-up in the second quarter of 2013, the Adjusted net income attributable to Bloomin' Brands, Inc. would have been $37.7 million and Adjusted diluted earnings per pro forma share would have been $0.29 per share for the three months ended June 30, 2013. If the normalized tax rate had been applied during the first quarter of 2013, Adjusted net income attributable to Bloomin' Brands, Inc. would have been $57.3 million and Adjusted diluted earnings per pro forma share would have been $0.45 per share for the three months ended March 31, 2013 (reported amounts were $63.2 million and $0.50 per share, respectively).
(5) Gives pro forma effect to the issuance of shares in the IPO as if they were all outstanding on January 1, 2012. There is no effect of this adjustment for the three and six months ended June 30, 2013.

Comparative Store Information

The table below presents the number of the Company's restaurants in operation at the end of the periods indicated:
  JUNE 30,
  2013 2012
Number of restaurants (at end of the period):    
Outback Steakhouse    
Company-owned—domestic (1) 663 670
Company-owned—international (1) 117 112
Franchised—domestic 106 106
Franchised and joint venture—international 93 83
Total 979 971
Carrabba's Italian Grill    
Company-owned 234 230
Franchised 1 1
Total 235 231
Bonefish Grill    
Company-owned 175 155
Franchised 7 7
Total 182 162
Fleming's Prime Steakhouse and Wine Bar    
Company-owned 65 64
Roy's    
Company-owned 22 22
System-wide total 1,483 1,450
____________________    
(1) One Company-owned restaurant in Puerto Rico that was previously included in Outback Steakhouse (international) is now included in Outback Steakhouse (domestic). The prior period has been revised to conform to the current period presentation.
CONTACT: Mark W. Seymour, Jr.         Vice President, Investor Relations         (813) 830-5311

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