GPS » Topics » RECONCILIATION OF DILUTED EARNINGS PER SHARE ON A GAAP BASIS TO DILUTED EARNINGS PER SHARE ON A NON-GAAP BASIS
This excerpt taken from the GPS 8-K filed Oct 16, 2008.
RECONCILIATION OF DILUTED EARNINGS PER SHARE ON A GAAP BASIS TO DILUTED EARNINGS PER SHARE ON A NON-GAAP BASIS
26 Weeks Ended August 4, 2007
Diluted earnings per share on a GAAP basis
Add: expenses related to the cost reduction initiatives (a)
Diluted earnings per share on a non-GAAP basis (a)
During the twenty-six weeks ended August 4, 2007, the company recognized $25 million of expenses on a pre-tax basis relating to its cost reduction initiatives. The majority of
these expenses were related to severance benefits to employees at headquarter locations. Diluted earnings per share excluding the amounts noted above is a non-GAAP financial measure. We believe this is an important metric as it represents our
diluted earnings per share from ongoing operations. However, this non-GAAP financial measure is not intended to supersede or replace our GAAP results.