Reconciliation & Adjustments Datasets

All the adjustments needed to reconcile our Enhanced Value screens with your traditional screens.

Traditional Enhanced
Net Income NOPAT & Economic Earnings
EBITDA Adjusted EBITDA
Total Assets Ending Invested Capital
Book Value Ending Invested Capital
Market Value New Constructs' Enterprise Value

Net Income to NOPAT Reconciliation

GAAP Net Income

+ Total Net Non-Operating Expense Hidden in Operating Earnings

+ Reported Net Non-Operating Expense

+ Change in Total Reserves

+ Goodwill Amortization

- ESO Expense (Employee Stock Options)

+ Interest for PV of Operating Leases

+ Non-Operating Tax Adjustments

+ Net After-Tax Non-Operating Expense/Income

= NOPAT (Net Operating Profit After Tax)

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Detailed Net Income to NOPAT Reconciliation

Detailed information on the adjustments featured in the HBS & MIT Sloan Paper that we use to convert Reported Net Income to NOPAT.

GAAP Net Income

+ 11 Categories of Non-Operating Expense Hidden in Operating Earnings 

+ 14 Categories ofReported Net Non-Operating Expense

+ Change in Total Reserves

+ Goodwill Amortization

- ESO Expense (Employee Stock Options)

+ Interest for PV of Operating Leases

+ Non-Operating Tax Adjustments

+ 5 Categories of Net After-Tax Non-Operating Expense/Income

= NOPAT (Net Operating Profit After Tax)

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Detailed Net Income to NOPAT Reconciliation with Line Item Sums & Counts

Get very specific, line item level detail on the adjustments we make to Net Income to arrive at NOPAT.

GAAP Net Income

+ 11 Categories of Non-Operating Expense Hidden in Operating Earnings, separated by increases & decreases with counts of both

+ 14 Categories ofReported Net Non-Operating Expense, separated by increases & decreases with counts of both

+ Change in Total Reserves

+ Goodwill Amortization

- ESO Expense (Employee Stock Options)

+ Interest for PV of Operating Leases

+ Non-Operating Tax Adjustments

+ 5 Categories of Net After-Tax Non-Operating Expense/Income, separated by increases & decreases with counts of both

= NOPAT (Net Operating Profit After Tax)

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Revenue to Adjusted EBITDA Reconciliation

Total Operating Revenue

+ Total Operating Income

- Total Operating Expense

- Total Net Non-Operating Expense Hidden in Operating Earnings

- ESO Expense (Employee Stock Options)

+ Goodwill Amortization

+ Depreciation and Amortization (Cash Flow)

= Adjusted EBITDA/EBTDA

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Total Assets to Adjusted Book Value (Invested Capital) Reconciliation

Total Assets (unadjusted)

- Excess Cash

- NIBCL (Non-Interest-Bearing Current Liabilities)

+ Total Reserves

- Total Reported Operating Lease Assets

+ Off-Balance-Sheet Operating Leases

- Unconsolidated Subsidiary Assets (non-operating)

- Total Discontinued Operations Assets

+ Accumulated Goodwill Amortization

+ Accumulated Asset Write-Downs After-Tax

+ Accumulated Unrecorded Goodwill

- Total Reported Deferred Tax Assets

- Hidden Deferred Tax Assets Less Current Deferred Tax Liabilities

- Total Reported Deferred Compensation Assets

- Hidden Deferred Compensation Assets Less Current Deferred Compensation Liabilities

- Over Funded Pensions

- Accumulated OCI (Other Comprehensive Income), Including Quarterly Estimates

= Adjusted Book Value (Invested Capital)

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Accounting Book Value to Adjusted Book Value (Invested Capital) Reconciliation

Total Shareholders' Equity (Accounting Book Value)

+ Short-Term Debt and Long-Term Debt

- Total Reported Operating Lease Assets Less Operating Lease Liabilities

+ Off-Balance-Sheet Operating Leases

+ Total Non-Current Other Liabilities Less Reported Deferred Tax Liabilities

+ Total Reserves

+ Accumulated Goodwill Amortization

+ Accumulated Asset Write-Downs After-Tax

+ Accumulated Unrecorded Goodwill

- Unconsolidated Subsidiary Assets (non-operating)

- Net Assets from Discontinued Operations

- Total Reported Deferred Tax Assets Less Deferred Tax Liabilities

- Hidden Deferred Tax Assets Less Deferred Tax Liabilities

- Total Reported Deferred Compensation Assets Less Deferred Compensation Liabilities

- Hidden Deferred Compensation Assets Less Deferred Compensation Liabilities

- Excess Cash

- Over Funded Pensions

- Accumulated OCI (Other Comprehensive Income), Including Quarterly Estimates

= Adjusted Book Value (Invested Capital)

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Market Value to Enterprise Value Reconciliation

Market Value of Basic Equity

- Excess Cash

- Net Assets from Discontinued Operations

- Fair Value of Unconsolidated Subsidiary Assets (non-operating)

- Net Deferred Tax Liability

- Net Deferred Compensation Assets

+ Fair Value of Total Debt

+ Fair Value of Preferred Capital

+ Fair Value of Minority Interests

+ Value of Outstanding ESO After-Tax

- Pensions Net Funded Status

= Enterprise Value

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