1. Fiscal 2018 GAAP operating income included restructuring expense of $34.0 million (pre-tax), goodwill and intangible asset impairments of $15.8 milion (pre-tax), and other non-recurring expenses of $17.3 million (pre-tax). On an adjusted basis, operating income was $269.4 million. Fiscal 2016 GAAP operating income included restructuring expense of $12.4 million (pre-tax). On an adjusted basis, operating income was $255.9 million.
2. Net earnings attributable to Valmont Industries, Inc.
3. See Item 6, Selected Financial Data, in the company’s Form 10-K for calculation of invested capital and return on invested capital. See also footnote 3 above in “2018 Financial Performance” for 2018 adjusted return on invested capital.
4. Fiscal 2018 included impairments of goodwill and intangible assets of $14.7 million after-tax ($0.66 per share), restructuring expenses of $30.1 million after-tax ($1.34 per share), refinancing of long-term debt expenses of $11.1 million after-tax ($0.50 per share), $14.6 million after-tax ($0.65 per share) of other non-recurring expenses, and a loss from the divestiture of the grinding media business of $5.5 million after-tax ($0.24 per share).
5. Fiscal 2017 included $42.0 million ($1.85 per share) of tax expense attributed to the Tax Cuts and Jobs Act of 2017 (the “2017 Tax Act”) enacted in December 2017.
6. The Company adopted Accounting Standards Codification (“ASC”) Topic 606, Revenue From Contracts with Customers, on a modified retrospective basis as of the first day of fiscal 2018. Revenue recognition for the prior four years presented in this table were under a different basis which was ASC Topic 605. Please see footnote 1 to the financial statements for further information.
7. Fiscal 2016 included deferred income tax benefit of $30.6 million ($1.35 per share) resulting primarily from the re-measurement of the deferred tax asset for the Company’s U.K. defined benefit pension plan. In addition, fiscal 2016 included $9.9 million ($0.44 per share) recorded as a valuation allowance against a tax credit asset. Finally, fiscal 2016 included the reversal of a contingent liability that was recognized as part of the Delta purchase accounting of $16.6 million ($0.73 per share) which is not taxable.
For more information on the footnotes above and the reasons why we believe the non-GAAP measures are useful, please see Item 6, Item 7 and Item 8.