RECONCILIATION OF GAAP TO NON-GAAP (Unaudited; In millions, except per share data which is calculated prior to rounding) Second-Quarter 2006 Reconciliation of Income (a) Items Impacting Comparability HFCS Gain Net Litigation on Reported Favorable Settlement Asset Restructuring (GAAP) Tax Items
Proceeds Sale Charges Net Operating Revenues $5,467 - - - - Cost of Sales 3,291 - - - - Gross Profit 2,176 - - - - Selling, Delivery, and Administrative Expenses 1,637 - - - (8) Operating Income 539 - - - 8 Interest Expense, Net 161 - - - - Other Nonoperating Income (Expense), Net 3 - - - - Income Before Income Taxes 381 - - - 8 Income Tax Expense 42 71 - - 3 Net Income $339 (71) - - 5 Diluted Net Income Per Share $0.
Example 2 -- Assume that in order to entice Ted to donate his auto, the agent promised to issue a written acknowledgement to Ted indicating a gross
proceeds sales price equal to the blue book retail value of $8,400, instead of the actual auctioned price of $4,000.