1. ARAMARK CORPORATION AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
EFFECTIVE INCOME TAX RATE
(Unaudited)
(In thousands)
Fiscal 2006 net income includes a $14.9 million favorable income tax adjustment based on the settlement of certain open tax years.
Management believes that presentation of the effective income tax rate adjusted to eliminate the impact of the favorable income tax adjustment
provides useful information to investors because it enhances comparability between the current year and prior year reporting periods and
provides insight into management's effective income tax rate in the near term.
Three Months Ended
December 30, 2005
Income Before Income Taxes (as reported) $ 124,530
Provision for Income Taxes (as reported) $ 31,409
Add: Favorable Income Tax Adjustment 14,936
Provision for Income Taxes (as adjusted) $ 46,345
Effective Income Tax Rate (as reported) 25.2%
Effective Income Tax Rate (as adjusted) 37.2%