Net Income to NOPAT Reconciliation
The basic adjustments we make to convert Net Income to NOPAT.
GAAP Net Income
+ Total Net Non-Operating Expense Hidden in Operating Earnings
+ Reported Net Non-Operating Expense
+ Change in Total Reserves
+ Goodwill Amortization
- ESO Expense (Employee Stock Options)
+ Interest for PV of Operating Leases
+ Non-Operating Tax Adjustments
+ Net After-Tax Non-Operating Expense/Income
= NOPAT (Net Operating Profit After Tax)