SCHN 2017 Annual Report

SCHNITZER STEEL INDUSTRIES, INC. 49 / Schnitzer Steel Industries, Inc. Form 10-K 2017 The following is a reconciliation of adjusted net income (loss) from continuing operations attributable to SSI and adjusted diluted earnings (loss) per share from continuing operations attributable to SSI (in thousands, except per share data): Fiscal 2017 Fiscal 2016 Fiscal 2015 Net income (loss) from continuing operations attributable to SSI: As reported $ 44,901 $ (18,061) $ (189,782) Goodwill impairment charges — 8,845 141,021 Other asset impairment charges (recoveries), net (717) 20,682 45,119 Restructuring charges and other exit-related activities (109) 6,781 13,008 Resale or modification of previously contracted shipments, net of recoveries (1,144) (694) 6,928 Non-cash write-off of debt issuance costs — 768 — Income tax expense (benefit) allocated to adjustments (1) — 529 (12,703) Adjusted $ 42,931 $ 18,850 $ 3,591 Diluted earnings (loss) per share from continuing operations attributable to SSI: As reported $ 1.60 $ (0.66) $ (7.03) Goodwill impairment charges, per share — 0.32 5.22 Other asset impairment charges (recoveries), net, per share (0.03) 0.76 1.67 Restructuring charges and other exit-related activities, per share — 0.25 0.48 Resale or modification of certain previously contracted shipments, net of recoveries, per share (0.04) (0.03) 0.26 Non-cash write-off of debt issuance costs, per share — 0.03 — Income tax expense (benefit) allocated to adjustments, per share (1) — 0.02 (0.47) Adjusted $ 1.53 $ 0.69 $ 0.13 ___________________________ (1) Income tax allocated to the aggregate adjustments reconciling reported and adjusted net income (loss) from continuing operations attributable to SSI and diluted earnings (loss) per share from continuing operations attributable to SSI is determined based on a tax provision calculated with and without the adjustments. We believe that these non-GAAP financial measures allow for a better understanding of our operating and financial performance. These non-GAAP financial measures should be considered in addition to, but not as a substitute for, the most directly comparable U.S. GAAPmeasures. Although we find these non-GAAP financial measures useful in evaluating the performance of our business, our reliance on these measures is limited because the adjustments often have a material impact on our consolidated financial statements presented in accordance with GAAP. Therefore, we typically use these adjusted amounts in conjunction with our GAAP results to address these limitations.