1. Fiscal year 2011 excludes a $9.3 million bad debt provision ($6.0 million after taxes) or $0.10 per diluted share related to the Company’s customer, Borders Group, Inc. (“Borders”).
2. Fiscal year 2011 includes a $4.2 million tax benefit, or $0.07 per diluted share, associated with new tax legislation enacted in the U.K. that reduced the corporate income tax rate from 28% to 27%.
3. Fiscal year 2010 excludes intangible asset impairment and restructuring charges principally related to GIT Verlag, a B2B German-language controlled circulation magazine business acquired in 2002, of $15.1 million ($10.6 million after taxes), or $0.17 per diluted share.

NOTE: The Company’s management evaluates its operating performance excluding unusual and/or nonrecurring events. Management believes excluding such events provides a more effective and comparable measure of performance and a more balanced view of the underlying dynamics of the Company’s business. Since adjusted operating income and adjusted earnings per share are not measures calculated in accordance with GAAP, they should not be considered a substitute for other GAAP measures, including operating income and earnings per share, as an indicator of operating performance.

Throughout this report, references to amounts “excluding foreign exchange” and “currency neutral” exclude both foreign currency translation effects and transactional gains and losses.

CAGR—Compound Annual Growth Rate    FX—Foreign Exchange   
GAAP—U.S. Generally Accepted Accounting Principles   BPs—Basis Points