.Nagy Corporation reported the following income statement in 20X1, along with a comparable income statement for 20X0, its first year of operations:
Income Statement, 20X1 and 20X0
($ in millions)
20X1 20X0
Sales $ 350 $ 280
Cost of goods sold (188 ) (170 )
Depreciation expense (40 ) (38 )
Interest expense (25 ) (22 )
Fixed asset impairment (30)
Other operating expenses (99 ) (92 )
Loss before income tax benefit (32 ) (42 )
Income tax benefit 7 9
Net income $ (25 ) $ (33 )
In its Form 10-K, Nagy also provided a non-GAAP metric, earnings before depreciation and one-time charges, which was a pre-tax earnings measure that excluded depreciation expense and the one-time fixed-asset impairment charge in 20X1. Nagy reported that its earnings before depreciation and one-time charges was $38 million in 20X1 versus a $4 million loss in 20X1.
Required:
Provide the reconciliation (for both 20X1 and 20X0) to the nearest GAAP counterpart that Nagy must include with its non-GAAP metric. (Enter your answers in million. Amounts to be deducted should be indicated by a minus sign.)
($ in millions) 20X1 20X2
Income / Loss:
Adjustments:
Earnings (loss) before depreciation and one-time charges $ $
