The tables below provide reconciliations between the GAAP and non-GAAP measures.
The Company's income tax expense is periodically impacted by discrete tax items that are not reflective of income tax expense incurred as a result of current period earnings. Therefore, management believes disclosure of the effective tax rate and income tax provision before the effect of certain discrete tax items are important measures to permit investors' consistent comparison between periods. In the first three quarters 2022 and 2021 there were no such discrete tax items identified.
Management believes that net income (earnings) per share before the impact of foreign currency gains or losses and certain discrete income tax items, as discussed above, is an important measure in order to permit a consistent comparison of the Company's performance between periods.
(In thousands, except per share information) |
| 13-Weeks Ended |
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| 39-Weeks Ended |
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| September 24, |
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| September 25, |
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| September 24, |
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| September 25, |
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| 2022 |
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| 2021 |
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| 2022 |
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| 2021 |
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GAAP net income |
| $ | 210,848 |
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| $ | 259,039 |
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| $ | 680,313 |
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| $ | 796,064 |
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Foreign currency losses(1) |
|
| 29,863 |
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| 15,014 |
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| 55,809 |
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| 30,621 |
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Tax effect of foreign currency losses(2) |
|
| (1,277) |
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|
| (891) |
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| (4,159) |
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| (3,475) |
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Pro forma net income |
| $ | 239,434 |
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| $ | 273,162 |
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| $ | 731,963 |
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| $ | 823,210 |
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GAAP net income per share: |
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| Basic |
| $ | 1.09 |
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| $ | 1.35 |
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| $ | 3.53 |
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| $ | 4.14 |
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| Diluted |
| $ | 1.09 |
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| $ | 1.34 |
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| $ | 3.52 |
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| $ | 4.13 |
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| Pro forma net income per share: |
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| Basic |
| $ | 1.24 |
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| $ | 1.42 |
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| $ | 3.79 |
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| $ | 4.28 |
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| Diluted |
| $ | 1.24 |
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| $ | 1.41 |
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| $ | 3.79 |
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| $ | 4.27 |
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| Weighted average common shares outstanding: |
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| Basic |
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| 192,672 |
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|
| 192,322 |
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| 192,878 |
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| 192,123 |
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| Diluted |
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| 193,105 |
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| 193,185 |
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| 193,378 |
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| 192,955 |
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| (1) Foreign currency gains and losses for the Company are driven by movements of a number of currencies in relation to the U.S. Dollar and the related exchange rate impact on the significant cash, receivables, and payables held in a currency other than the functional currency at a given legal entity. However, there is minimal cash impact from such foreign currency gains and losses. |
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| (2) The tax effect of foreign currency losses was calculated using the effective tax rates of 4.3% and 7.5% for the 13-weeks and 39-weeks ended September 24, 2022, respectively and 5.9% and 11.3% for the 13-weeks and 39-weeks ended September 25, 2021, respectively. |
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