a) During the fourth quarter of fiscal year 2005, the Company elected to repatriate approximately $94 million of dividends from its European subsidiaries under the American Jobs Creation Act of 2004, which became law in October 2004. The law provides a favorable one-time tax rate on dividends from foreign subsidiaries. The tax accrual on the dividend was $7.5 million, or $0.12 per diluted share. In May 2005, the U.S. Internal Revenue Service issued regulatory guidance, which provides for a tax benefit that will fully offset the $7.5 million. Accordingly, the tax expense recorded in the fourth quarter of fiscal year 2005 will have no cash impact and will be fully offset by a tax benefit that will be recognized by the Company in the first quarter of fiscal year 2006. The Company has excluded the $7.5 million, or $0.12 per diluted share, from the Adjusted results.
b) The amounts reported for fiscal year 2004 exclude a net tax benefit of $3.0 million, or $0.05 per diluted share, related to the resolution of certain state and federal tax matters and an adjustment to accrued foreign taxes.
c) In the fourth quarter of fiscal year 2002, Wiley finalized its commitment to relocate the Company's headquarters to Hoboken, N.J. The relocation was completed in the first quarter of fiscal year 2003. These amounts exclude unusual charges for costs associated with the relocation of approximately $2.5 million pretax, or $0.02 per diluted share, in fiscal year 2003, and $12.3 million pretax, or $0.12 per diluted share, in fiscal year 2002.
d) The amounts reported for fiscal year 2003 exclude a nonrecurring tax benefit of $12 million, equal to $0.19 per diluted share, resulting from a corporate reorganization that enabled the Company to increase the tax-deductible net asset basis of certain European subsidiaries.
e) Fiscal Year 1998 excludes a gain from the sale of the U.S. law publishing program of $21.3 million, or $12.2 million after tax equal to $0.19 per diluted share.
Note: Management believes the non-GAAP financial measures presented provide a more meaningful comparison of the Company's year-over-year results. These measures improve investors' ability to understand the Company's performance and future expectations. Please also refer to the Management's Discussion and Analysis in the Company's filings on form 10K to the SEC.
GAAP = U.S. Generally Accepted Accounting Principles
CAGR = Compound Annual Growth Rate