Target : Calculation of Consolidated EBIT and EBITDA

quarterly, fiscal 2016 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.

2020

2019

2018

(millions) (unaudited)

Net earnings from continuing operations + Provision for income taxes + Net interest expense

Earnings from continuing operations before interest expense and income taxes (EBIT)

+ Depreciation and amortization (b)

$ 1,380 $ 1,014 $ 1,690 $

350 284 499

106 632 122

1Q	4Q	3Q	2Q	1Q	4Q	3Q	2Q	1Q
284	$	833 $	706 $	938 $	792$	798 $	616 $	799 $	717
45	218	195	279	229	216	97	223	210
117	118	113	120	126	110	115	115	121
1,836	1,930	2,311	446	1,169	1,014	1,337	1,147	1,124	828	1,137	1,048
637	603	604	641	699	637	624	644	647	592	603	631

4Q

3Q

2Q

EBITDA

(millions) (unaudited)

$ 2,473 $ 2,533 $ 2,915 $ 1,087	$ 1,868 $ 1,651 $ 1,961 $ 1,791	$ 1,771 $ 1,420 $ 1,740 $ 1,679
2017	2016

4Q (a)

3Q

2Q

1Q

4Q

3Q

2Q

1Q

$ 1,088 $

476 $

670 $

675$

823 $

608 $

• 624 $ 612

• 251

  131

  140

  137

  138

• 304 411

• Net earnings from continuing operations + Provision for income taxes + Net interest expense

  (76) 131

  135

  307

  355

  387

  310

• 315 282

  Earnings from continuing operations before interest expense and income taxes (EBIT)

  + Depreciation and amortization (b)

  • 642 585

• 576 553

1,143 668

• 862 1,108

  1,170 581

  1,347 614

  1,056 576

  • 1,243 1,305

    EBITDA

    $ 1,811 $ 1,504 $ 1,693 $ 1,751

    $ 1,961 $ 1,632 $ 1,819 $ 1,858

    • (a) The fourth quarter 2017 consisted of 14 weeks compared with 13 weeks in the comparable periods presented.

    (b)

    Represents total depreciation, including amounts classified within Cost of Sales.

    Last Updated: 3/2/2021

annual, fiscal 2016 to present

(millions) (unaudited)	2020	2019	2018	2017 (a)	2016
Net earnings from continuing operations	$	4,368 $	3,269 $	2,930 $	2,908 $	2,666
+ Provision for income taxes	1,178	921	746	722	1,295
+ Net interest expense	977	477	461	653	991
Earnings from continuing operations before
interest expense and income taxes (EBIT)	6,523	4,667	4,137	4,283	4,952
+ Depreciation and amortization (b)	2,485	2,604	2,474	2,476	2,318
EBITDA	$	9,008 $	7,271 $	6,611 $	6,759 $	7,270

• (a) 2017 consisted of 53 weeks compared with 52 weeks in the comparable periods presented.

(b)

Represents total depreciation, including amounts classified within Cost of Sales.

Last Updated:

3/2/2021