United Stationers Inc. and Subsidiaries provided a reconciliation of non-GAAP financial measures for the three months and years ended December 31, 2003 and 2002. For both periods, net income and diluted EPS were provided first under GAAP and then excluding certain charges such as restructuring costs, loss on early retirement of debt, and cumulative effect of a change in accounting principle. The note at the end explains that these adjusted measures are provided in addition to GAAP as they allow for comparative analysis by excluding certain items required to be recorded under GAAP.

1. United Stationers Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
(unaudited)
Net Income and Diluted EPS Excluding Charges (Net of Tax)
(in thousands, except per share data)
For the Three Months Ended For the Years Ended
December 31, December 31,
2003 2002 2003 2002
Net income $ 21,923 $ 1,396 $ 73,002 $ 60,228
Add: Loss on early retirement of debt -- -- 4,150 --
Cumulative effect of a change in accounting
principle -- -- 6,108 --
Restructuring and other charges, net -- 5,575 -- 4,069
Net income excluding charges $ 21,923 $ 6,971 $ 83,260 $ 64,297
Diluted earnings per share under GAAP $ 0.64 $ 0.04 $ 2.18 $ 1.78
Add: Loss on early retirement of debt -- -- 0.12 --
Cumulative effect of a change in accounting
principle -- -- 0.19 --
Restructuring and other charges, net -- 0.17 -- 0.12
Diluted EPS excluding charges $ 0.64 $ 0.21 $ 2.49 $ 1.90
Weighted average number of common shares –
diluted 34,364 32,976 33,439 33,783
Note: Adjusted net income and diluted EPS are provided as an additional financial measure. Generally Accepted
Accounting Principles require that the restructuring and other charges, loss on early retirement of debt and the cumulative
effect of a change in accounting principle be recorded as a reduction in net income. The company believes, for
comparative purposes, it is helpful to provide readers of its financial statements with adjusted net income and diluted EPS,
which exclude these items.