Financial Review (continued) Reconciliation of Non-GAAP Financial Measure—After-Tax Return on Invested Capital: The following table reconciles the percentages of after-tax return on invested capital, or “ROIC,” both including and excluding the 2001 restructuring and impairment charges, to net income. After-tax return on invested capital is calculated as after-tax operating profit (excluding rent) divided by average invested capital (which includes a  factor to capitalize operating leases). Fiscal Year Ended August (in thousands, except per share and percentage data) 2003 2002 2001 2000 1999 Net income $ 517,604 $ 428,148 $ 175,526 $ 267,590 $ 244,783 Adjustments: After-tax interest 52,686 49,471 61,560 47,241 28,603 After-tax rent 68,764 61,348 61,396 58,853 60,542 After-tax return 639,054 538,967 298,482 373,684 333,928 After-tax restructuring and impairment charges — — 95,822 — — After-tax return, excluding restructuring and impairment charges $ 639,054 $ 538,967 $ 394,304 $ 373,684 $ 333,928 Average debt (a) $1,484,987 $1,329,077 $1,445,899 $1,182,055 $ 807,320 Average equity (b) 580,176 802,289 879,912 1,149,104 1,316,204 Rent x 6 (c) 663,990 594,192 602,382 574,290 575,460 Pretax invested capital 2,729,153 2,725,558 2,928,193 2,905,449 2,698,984 Average equity, excluding restructuring and impairment charges (d) — — 6,844 — — Pretax invested capital, excluding restructuring and impairment charges $2,729,153 $2,725,558 $2,935,037 $2,905,449 $2,698,984 ROIC 23.4% 19.8% 10.1% 12.9% 12.4% ROIC, before restructuring and impairment charges 23.4% 19.8% 13.4% (e) 12.9% 12.4% a) Average debt is equal to the average of our long-term debt measured at the end of each of the 13 fiscal periods in our fiscal year. Long-term debt (in thousands) was $545,067 at August 29, 1998. b) Average equity is equal to the average of our stockholders’ equity measured at the end of each of the 13 fiscal periods in our fiscal year. Stockholders’ equity (in thousands) was $1,302,057 at August 29, 1998. c) Rent is multiplied by a factor of six to capitalize operating leases in the determination of pretax invested capital. d) Average equity at August 25, 2001 increased by $6.8 million as a result of excluding restructuring and impairment charges. e) ROIC, excluding nonrecurring charges, was presented as 14.3% in our Form 10-K for the fiscal year ended August 31, 2002, but has been revised to reflect a rolling 13-period average of debt and equity to conform with our current methodology for calculating ROIC. Reconciliation of Non-GAAP Financial Measure—Cash Flow Before Share Repurchases: The following table reconciles net cash provided by  operating activities to cash flow before share repurchases. Cash flow before share repurchases is defined as the change in debt plus treasury stock purchases. Fiscal Year Ended August (in thousands) 2003 2002 2001 2000 1999 Net cash provided by operating activities $ 698,255 $ 739,091 $ 458,937 $ 512,960 $ 311,668 Net cash used by investing activities (167,799) (64,511) (122,143) (242,349) (428,315) Net cash provided by financing activities other than the net change in debt  and treasury stock purchases 8,555 54,500 54,155 8,768 7,263 Net increase (decrease) in cash and cash equivalents (244) 788 (317) (1,051) 713 Cash flow before share repurchases $ 538,767 $ 729,868 $ 390,632 $ 278,328 $(108,671) 28