Best Buy 2016 Annual Report Download - page 49

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41
The periods used for analysis of non-GAAP financial performance represent the periods that management used internally to
assess performance.
The following table reconciles operating income, effective income tax rate, net earnings and diluted earnings per share for the
periods presented from continuing operations (GAAP financial measures) to non-GAAP operating income, non-GAAP
effective income tax rate, non-GAAP net earnings and non-GAAP diluted earnings per share from continuing operations (non-
GAAP financial measures) for the periods presented ($ in millions, except per share amounts):
Fiscal Year
2016 2015 2014
Operating income $ 1,375 $ 1,450 $ 1,144
Net CRT/LCD settlements(1) (77)—
(229)
Restructuring charges - COGS 3 — —
Other Canada brand consolidation charges - SG&A(2) 6——
Non-restructuring asset impairments - SG&A 61 42 99
Restructuring charges 198 5 149
Non-GAAP operating income $ 1,566 $ 1,497 $ 1,163
Income tax expense $ 503 $ 141 $ 388
Effective tax rate 38.4% 10.1% 35.8%
Income tax impact of Best Buy Europe sale(5) ——
(18)
Income tax impact of Europe legal entity reorganization(3) — 353 —
Income tax impact of Non-GAAP adjustments(4) 30 11 (8)
Non-GAAP Income tax expense $ 533 $ 505 $ 362
Non-GAAP Effective tax rate 35.4% 35.5% 33.5%
Net earnings from continuing operations $ 807 $ 1,246 $ 695
Net CRT/LCD settlements(1) (77)—
(229)
Restructuring charges - COGS 3 — —
Other Canada brand consolidation charges - SG&A(2) 6——
Non-restructuring asset impairments - SG&A 61 42 99
Restructuring charges 198 5 149
(Gain) loss on sale of investments 5 (11)(19)
Income tax impact of Best Buy Europe sale (5) ——18
Income tax impact of Europe legal entity reorganization(3) —(353)—
Income tax impact of Non-GAAP adjustments(4) (30)(11)8
Adjusted net earnings from continuing operations $ 973 $ 918 $ 721
Diluted earnings per share from continuing operations $ 2.30 $ 3.53 $ 2.00
Per share impact of net CRT/LCD settlements(1) (0.22)—
(0.66)
Per share impact of restructuring charges - COGS 0.01 — —
Per share impact of other Canada brand consolidation charges - SG&A(2) 0.02 — —
Per share impact of non-restructuring asset impairments - SG&A 0.17 0.12 0.29
Per share impact of restructuring charges 0.58 0.01 0.43
Per share impact of (gain) loss on sale of investments 0.01 (0.03)(0.06)
Per share income tax impact of Best Buy Europe sale(5) — — 0.05
Per share income tax effect of Europe legal entity reorganization(3) —(1.00)—
Per share income tax impact of Non-GAAP adjustments(4) (0.09)(0.03) 0.02
Adjusted diluted earnings per share from continuing operations $ 2.78 $ 2.60 $ 2.07
(1) Represents CRT/LCD litigation settlements reached in each reported period, net of related legal fees and costs.