TD Ameritrade 2018 Annual Report

Amount Diluted EPS Amount Diluted EPS Net income and diluted EPS - GAAP . . . . . . . . . . . . . . . . . . . . . . 1,473 $ 2.59 $ 872 $ 1.64 $ Non-GAAP adjustments: Amortization of acquired intangible assets . . . . . . . . . . . . . 141 0.25 79 0.15 Acquisition-related expenses . . . . . . . . . . . . . . . . . . . . . . . 445 0.78 88 0.17 Income tax effect of above adjustments . . . . . . . . . . . . . . . (158) (0.28) (63) (0.12) Non-GAAP net income and non-GAAP diluted EPS . . . . . . . . . . . 1,901 $ 3.34 $ 976 $ 1.84 $ Note: The term "GAAP" in the following explanation refers to generally accepted accounting principles in the United States. (1) Sept. 30, 2017 Sept. 30, 2018 Non-GAAP net income and non-GAAP diluted earnings per share (EPS) are non-GAAP financial measures as defined by SEC Regulation G. We define non-GAAP net income as net income adjusted to remove the after-tax effect of amortization of acquired intangible assets and acquisition-related expenses. We consider non-GAAP net income and non-GAAP diluted EPS as important measures of our financial performance because they exclude certain items that may not be indicative of our core operating results and business outlook and may be useful in evaluating the operating performance of the business and facilitating a meaningful comparison of our results in the current period to those in prior and future periods. Amortization of acquired intangible assets is excluded because management does not believe it is indicative of our underlying business performance. Acquisition-related expenses are excluded as these costs are not representative of the costs of running the Company’s on-going business. Non-GAAP net income and non-GAAP diluted EPS should be considered in addition to, rather than as a substitute for, GAAP net income and diluted EPS. Non-GAAP Net Income and Non-GAAP Diluted EPS (1) TD AMERITRADE HOLDING CORPORATION RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Dollars in millions, except per share amounts (Unaudited) Fiscal Year Ended 113