1. ARAMARK CORPORATION AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
RETURN ON INVESTED CAPITAL
(Unaudited)
(In Millions)
Return on invested capital is an operating metric used by management to evaluate the cash rate of return on capital that the Company has invested.
This metric helps the Company to evaluate the effectiveness of its capital allocation, and is a metric which long term investors may find useful.
Fiscal Year Ended
October 3, 2003 September 27, 2002 * September 28, 2001 September 29, 2000
Earnings from continuing operations before interest and taxes, as reported $ 552.0 $ 529.6 $ 415.5 $ 385.9
Add: Amortization of goodwill - - 22.3 19.3
Add: Amortization of intangible assets acquired through business combinations 49.5 42.8 21.4 19.7
Earnings from continuing operations before amortization of goodwill, amortization of acquired intangible assets, interest and taxes $ 601.5 $ 572.4 $ 459.2 $ 424.9
Provision for taxes (37.5%) (225.6) (214.7) (172.2) (159.3)
Earnings from continuing operations before amortization of goodwill, amortization of acquired intangible assets and interest $ 375.9 $ 357.8 $ 287.0 $ 265.6
Total shareholders' equity (end of period) $ 1,039.0 $ 858.2 $ 246.9 $ 111.5
Total debt (end of period) 1,729.9 1,875.6 1,670.6 1,837.4
Invested capital (end of period) $ 2,768.9 $ 2,733.8 $ 1,917.5 $ 1,948.9
Less: Invested capital related to discontinued operations of ARAMARK Educational Resources (end of period) - (210.7) (233.3) (218.2)
Invested capital (end of period), as adjusted $ 2,768.9 $ 2,523.1 $ 1,684.2 $ 1,730.7
Total shareholders' equity (prior year) $ 858.2 $ 246.9 $ 111.5 $ 126.6
Total debt (prior year) 1,875.6 1,670.6 1,837.4 1,634.4
Invested capital (prior year) $ 2,733.8 $ 1,917.5 $ 1,948.9 $ 1,761.0
Less: Invested capital related to discontinued operations of ARAMARK Educational Resources (prior year) (210.7) (233.3) (218.2) (198.4)
Invested capital (prior year), as adjusted $ 2,523.1 $ 1,684.2 $ 1,730.7 $ 1,562.6
Average invested capital $ 2,646.0 $ 2,103.7 $ 1,707.5 $ 1,646.7
Return on Invested Capital 14.2% 17.0% 16.8% 16.1%
* Fiscal 2002 includes a gain of $37.9 million related to the sale of ARAMARK's ownership interests in the Boston Red Sox and a related entity, and a gain of $5.8 million resulting principally from the sale of a residual interest in a previously
divested business.