1. Non-GAAP Reconciliation – EBIT
$ Millions Year ended LTM
12/31/99 12/31/04 6/30/05
Earnings before interest, income taxes,
minority interest and restructuring charges $ 316 $ 543 $ 715
Restructuring, asset impairment and other (56) - -
Earnings before interest, income taxes and $ 260 $ 543 $ 715
minority interest
Interest Expense (75) (111) (113)
Provision for income taxes (47) (56) (100)
Minority Interests in earnings of unconsolidated (6) (26) (29)
subsidiaries
Net Earnings $ 132 $ 350 $ 473
EBIT = Earnings before interest, taxes, and minority interests.
We use EBIT to assess and measure the performance of our operating segments and also as a component in measuring our variable compensation
programs. The table above reconciles EBIT, a non-GAAP financial measure, to our consolidated net earnings, for each of the applicable periods.
2. Additional Disclosures
As previously announced, effective May 2, 2005, CMI
made certain leadership changes within its management
team and subsequently on July 21, 2005 in Form 8-K,
restated operating segment data for the periods of 2003
to the present.
Operating segment data used in these presentations for
the periods of 1999 through 2002 has not been adjusted
for the changes in segment reporting.
The segment EBIT used in these presentations excludes
restructuring, asset impairment and other charges,
minority interest and preferred dividends.