divested businesses, and excludes intangible amortization,
stock-based compensation expense, restructuring and other charges.
Net invested capital is defined as total assets less current
liabilities and non-operating assets. Non-operating assets include
cash and cash equivalents, short-term investments, notes receivable,
deferred income tax assets, and other non-operating assets.
We believe ROIC is a useful measure in providing investors with
information regarding the Company's performance. ROIC is a widely
accepted measure of earnings efficiency in relation to total capital
employed. We believe that increasing the return on total capital
employed, as measured by ROIC, is an effective method to sustain and
increase shareholder value. ROIC is not a measure of financial
performance under generally accepted accounting principles in the
U.S., and may not be defined and calculated by other companies in the
same manner. ROIC should not be considered in isolation or as an
alternative to net earnings as an indicator of performance.
The following table reconciles ROIC as calculated using after-tax
non-GAAP operating income to the same performance measure calculated
using the nearest GAAP measure, which is GAAP operating income from
continuing operations adjusted for taxes. The Company's ROIC metric
for the December 31, 2007 quarter is based on pro forma amounts that
include the Company's actual balances as of September 28, 2007
adjusted for the preliminary purchase allocation for the Company's
acquisition of Solectron. Please refer to the Company's trended
financial statements included in the Investors section of our website
for further details.
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