1. Non- GAAP Financial Information
Certain non-GAAP financial measures contained in the Dean Foods
2009 Investor Day presentation, including adjusted diluted earnings per
share, free cash flow, consolidated adjusted operating income and
consolidated adjusted net income, have been adjusted to eliminate the
net expense or net gain related to certain items identified in our press
releases. A full reconciliation of these measures calculated according
to GAAP and on an adjusted basis is contained in the press releases
for the respective financial statement periods, which are publicly
available on our web site at www.deanfoods.com/investors.
2. Reconciliations
Reconciliation of GAAP to Non-GAAP Financial Measures
(dollars in thousands*)
Reconciliation of GAAP to adjusted operating income 2008 2007 2006 2005 2004 2003 2002
GAAP operating income $ 608,690 $ 553,597 $ 650,695 $ 580,096 $ 535,745 $ 573,683 $ 475,906
Adjustments:
Facility closings, reorganizations and other costs 22,758 36,109 25,116 38,599 24,576 11,766 19,050
Gain on sale of frozen pre-whipped topping business (68,700)
Litigation settlement (5,900)
Adjusted operating income $ 631,448 $ 589,706 $ 675,811 $ 618,695 $ 554,421 $ 516,749 $ 494,956
Reconciliation of GAAP to adjusted net income 2008 2007 2006 2005 2004 2003 2002
GAAP net income from continuing operations $ 184,840 $ 130,462 $ 280,263 $ 256,650 $ 206,207 $ 236,188 $ 155,028
Adjustments, net of tax:
Facility closings, reorganizations and other costs 14,037 21,965 15,447 23,963 14,933 7,259 11,852
Gain on sale of frozen pre-whipped topping business (42,100)
Litigation settlement (3,800)
Investment in Consolidated Container 6,300
Favorable tax settlement (6,600)
Debt refinancing and special dividend costs 353 12,036 - - 21,200 -
Adjusted net income from continuing operations $ 199,230 $ 164,463 $ 295,710 $ 280,613 $ 238,540 $ 201,347 $ 166,580
3. Reconciliations
Computation of Free Cash Flow provided by operations
2008 2007 2006 2005 2004
Net cash provided by continuing
$719,258 $350,250 $561,552 $541,938 $413,615
operations
Additions to property, plant and
equipment (256,965) (241,448) (237,242) (287,129) (301,186)
Free cash flow provided by continuing operations $462,293 $108,802 $324,310 $254,809 $112,429
