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## Financial Review 

(continued) 

Reconciliation of Non-GAAP Financial Measure—After-Tax Return on Invested Capital: The following table reconciles the percentages of after-tax return on invested capital, or “ROIC,” both including and excluding the 2001 restructuring and impairment charges, to net income. After-tax return on invested capital is calculated as after-tax operating profit (excluding rent) divided by average invested capital (which includes a factor to capitalize operating leases). 

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a) Average debt is equal to the average of our long-term debt measured at the end of each of the 13 fiscal periods in our fiscal year. Long-term debt (in thousands) was $545,067 at August 29, 1998. 

b) Average equity is equal to the average of our stockholders’ equity measured at the end of each of the 13 fiscal periods in our fiscal year. Stockholders’ equity (in thousands) was $1,302,057 at August 29, 1998. 

c) Rent is multiplied by a factor of six to capitalize operating leases in the determination of pretax invested capital. 

d) Average equity at August 25, 2001 increased by $6.8 million as a result of excluding restructuring and impairment charges. 

e) ROIC, excluding nonrecurring charges, was presented as 14.3% in our Form 10-K for the fiscal year ended August 31, 2002, but has been revised to reflect a rolling 13-period average of debt and equity to conform with our current methodology for calculating ROIC. 

Reconciliation of Non-GAAP Financial Measure—Cash Flow Before Share Repurchases: The following table reconciles net cash provided by operating activities to cash flow before share repurchases. Cash flow before share repurchases is defined as the change in debt plus treasury stock purchases. 

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