Target : Calculation of Consolidated EBIT and EBITDA

reconciliation of non-GAAP EBIT and EBITDA

quarterly, fiscal 2017 to present

Background

We have presented earnings from continuing operations before interest expense and income taxes (EBIT) and earnings from continuing operations before interest expense, income taxes, depreciation, and amortization (EBITDA) as non-GAAP financial measures. We believe these measures provide meaningful information about our operational efficiency compared with our competitors by excluding the impact of differences in tax jurisdictions and structures, debt levels, and, for EBITDA, capital investment. These measures are not in accordance with, or an alternative to, generally accepted accounting principles in the United States (GAAP). The most comparable GAAP measure is net earnings from continuing operations. EBIT and EBITDA should not be considered in isolation or as a substitution for analysis of our results as reported in accordance with GAAP. Other companies may calculate EBIT and EBITDA differently, limiting the usefulness of the measures for comparisons with other companies.

					2021								2020								2019
(millions) (unaudited)		3Q		2Q		1Q			4Q		3Q		2Q		1Q			4Q		3Q		2Q		1Q
Net earnings from continuing operations	$	1,488	$	1,817	$	2,097		$	1,380	$	1,014	$	1,690	$	284	$	833	$	706	$	938	$	792
+ Provision for income taxes		423		553		512			350		284		499		45			218		195		279		229
+ Net interest	expense		105		104		108			106		632		122		117			118		113		120		126
Earnings from continuing operations before
interest expense and income taxes (EBIT)		2,016		2,474		2,717			1,836		1,930		2,311		446			1,169		1,014		1,337		1,147
+ Depreciation	and amortization (b)		652		633		667			637		603		604		641			699		637		624		644
EBITDA	$	2,668	$	3,107	$	3,384	$	2,473	$	2,533	$	2,915	$	1,087	$	1,868	$	1,651	$	1,961	$	1,791
					2018									2017
(millions) (unaudited)		4Q		3Q		2Q			1Q		4Q (a)		3Q		2Q			1Q
Net earnings from continuing operations	$	798	$	616	$	799	$	717		$	1,088	$	476	$	670	$	675
+ Provision for income taxes		216		97		223			210			(76)		135		307			355
+ Net interest	expense		110		115		115			121			131		251		131			140
Earnings from continuing operations before
interest expense and income taxes (EBIT)		1,124		828		1,137			1,048			1,143		862		1,108			1,170
+ Depreciation	and amortization (b)		647		592		603			631			668		642		585			581
EBITDA	$	1,771	$	1,420	$	1,740	$	1,679		$	1,811	$	1,504	$	1,693	$	1,751

1. The fourth quarter 2017 consisted of 14 weeks compared with 13 weeks in the comparable periods presented.
2. Represents total depreciation, including amounts classified within Cost of Sales.

Last Updated: 11/17/2021

reconciliation of non-GAAP EBIT and EBITDA

annual, fiscal 2017 to present

(millions) (unaudited)		2020		2019		2018		2017 (a)
Net earnings from continuing operations	$	4,368	$	3,269	$	2,930	$	2,908
+ Provision for income taxes		1,178		921		746		722
+ Net interest expense		977		477		461		653
Earnings from continuing operations before interest
expense and income taxes (EBIT)		6,523		4,667		4,137		4,283
+ Depreciation and amortization (b)		2,485		2,604		2,474		2,476
EBITDA	$	9,008	$	7,271	$	6,611	$	6,759

1. 2017 consisted of 53 weeks compared with 52 weeks in the comparable periods presented.
2. Represents total depreciation, including amounts classified within Cost of Sales.

Last Updated: 11/17/2021