Q2 FY25 Earnings Cardinal Health

Q2 FY25 Earnings Cardinal Health

• 1. 1 © 2025 Cardinal Health. All Rights Reserved. © 2025 Cardinal Health. All Rights Reserved. January 30, 2025 Q2 FY25 Earnings Cardinal Health, Inc.

• 2. 2 © 2025 Cardinal Health. All Rights Reserved. • Q2 FY25 Earnings Cautions Concerning Forward-Looking Statements This presentation contains forward-looking statements addressing expectations, prospects, estimates and other matters that are dependent upon future events or developments. These statements may be identified by words such as "expect," "anticipate," "intend," "plan," "believe," “will," "should," "could," "would," "project," "continue,” "likely," and similar expressions, and include statements reflecting future results or guidance, statements of outlook and various accruals and estimates. These matters are subject to risks and uncertainties that could cause actual results to differ materially from those projected, anticipated or implied. These risks and uncertainties include the risk that we may fail to achieve our strategic objectives, including the continued execution of the GMPD Improvement Plan, whether as a result of Cardinal Health Brand sales, ongoing inflationary pressures or the impact of possible tariffs on products we source or manufacture; competitive pressures in Cardinal Health's various lines of business, including the risk that customers may reduce purchases made under their contracts with us or terminate or not renew their contracts; our ability to manage uncertainties associated with the pricing of branded pharmaceuticals, including as a result of possible legislative action; risks associated with litigation matters, including an Department of Justice investigation focused on potential violations of the Anti-Kickback Statute and False Claims Act; the risk that events outside of our control, such as weather or geopolitical events, may impact demand for our products or may cause supply shortages that impact our cost and ability to fulfill customer demand; the performance of our generics program, including the amount or rate of generic deflation and our ability to offset generic deflation and maintain other financial and strategic benefits through our generic sourcing venture or other components of our generics programs; risks associated with recently completed and still-pending acquisitions, including risks arising as a result from our entry into new lines of businesses; the possibility that our at-Home reporting unit goodwill could become impaired due to changes to our long-term financial plan, increases in global interest rates or unfavorable changes in the U.S. statutory tax rate. Cardinal Health is subject to additional risks and uncertainties described in Cardinal Health's Form 10-K, Form 10-Q and Form 8K reports and exhibits to those reports. This presentation reflects management’s views as of January 30, 2025. Except to the extent required by applicable law, Cardinal Health undertakes no obligation to update or revise any forward-looking statement. Forward-looking statements are aspirational and not guarantees or promises that goals, targets or projections will be met, and no assurance can be given that any commitment, expectation, initiative or plan in this report can or will be achieved or completed. Cardinal Health provides definitions and reconciliations of non-GAAP financial measures and their most directly comparable GAAP financial measures at ir.cardinalhealth.com

• 3. 3 © 2025 Cardinal Health. All Rights Reserved. © 2025 Cardinal Health. All Rights Reserved. Q2 Results

• 4. 4 © 2025 Cardinal Health. All Rights Reserved. GAAP Basis ($M) Q2 FY25 Non-GAAP Basis ($M) Q2 FY25 Revenue % change $55,264 (4)% N/A Gross Margin % change $1,941 5% $1,941 5% SG&A % change $1,306 3% $1,306 3% Operating Earnings % change $549 9% $635 9% Interest and Other1 % change $38 N.M. N/A Net Earnings2 % change $400 9% $468 1% Diluted EPS2 % change $1.65 10% $1.93 2% Q2 FY25 financial summary 1The sum of “other (income)/expense, net” and “interest expense, net” 2Attributable to Cardinal Health, Inc. Please see appendix for GAAP to Non-GAAP reconciliations. • Q2 FY25 Earnings

• 5. 5 © 2025 Cardinal Health. All Rights Reserved. Pharmaceutical and Specialty Solutions Q2 FY25 results Q2 FY25 ($M) Q2 FY24 ($M) YoY change Revenue $50,849 $53,202 (4)% Segment profit $531 $495 7% Segment profit margin 1.04% 0.93% 11 bps • Q2 FY25 Earnings The sum of the components and certain computations may reflect rounding adjustments. - Large customer contract expiration + Brand and specialty products + Brand and specialty pharmaceutical sales growth from existing and new customers BioPharma Solutions, including Specialty Networks Large customer contract expiration + - Drivers: Revenue Segment profit

• 6. 6 © 2025 Cardinal Health. All Rights Reserved. + + Global Medical Products and Distribution Q2 FY25 results • Q2 FY25 Earnings Drivers: Revenue Volume growth from existing customers Segment profit Q2 FY25 ($M) Q2 FY24 ($M) YoY change Revenue $3,154 $3,127 1% Segment profit $18 $11 N.M. Segment profit margin 0.57% 0.35% 22 bps The sum of the components and certain computations may reflect rounding adjustments. - WaveMark write-off of uncollectible receivables Cost optimization initiatives

• 7. 7 © 2025 Cardinal Health. All Rights Reserved. + OptiFreight Logistics Other: NPHS, at-Home Solutions and OptiFreight Q2 FY25 results • Q2 FY25 Earnings Drivers: Growth across the three operating segments Segment profit Q2 FY25 ($M) Q2 FY24 ($M) YoY change Revenue $1,283 $1,135 13% Segment profit $118 $106 11% Segment profit margin 9.20% 9.34% (14) bps The sum of the components and certain computations may reflect rounding adjustments. Revenue + + Nuclear and Precision Health Solutions

• 8. 8 © 2025 Cardinal Health. All Rights Reserved. © 2025 Cardinal Health. All Rights Reserved. Outlook

• 9. 9 © 2025 Cardinal Health. All Rights Reserved. FY25 outlook FY24 actual Non-GAAP EPS $7.85 - $8.00 Previously $7.75 - $7.90 $7.53 Interest and Other $200M - $230M Previously $140M - $170M $42M Non-GAAP ETR 23.0% - 24.0% 21.7% Diluted weighted average shares outstanding ~243M 247M Share repurchases $750M $750M Capital expenditures $500M to $550M $511M Non-GAAP adjusted free cash flow $1.0B - $1.5B $3.9B FY25 financial expectations Bold indicates a change to the FY25 outlook provided in the Q1 FY25 earnings release on November 1, 2024. Guidance includes completed Integrated Oncology Network and GI Alliance acquisitions; does not reflect pending Advanced Diabetes Supply Group acquisition. The company does not provide forward-looking expectations on a GAAP basis as certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated. See “use of non-GAAP measures” in the financial appendix at the end of this presentation for additional explanation. • Q2 FY25 Earnings

• 10. 10 © 2025 Cardinal Health. All Rights Reserved. FY25 segment guidance • Q2 FY25 Earnings Revenue and segment profit Bold indicates a change to the FY25 outlook provided in the Q1 FY25 earnings release on November 1, 2024. Guidance includes completed Integrated Oncology Network and GI Alliance acquisitions; does not reflect pending Advanced Diabetes Supply Group acquisition. Other includes the following three operating segments: Nuclear and Precision Health Solutions (NPHS), at-Home Solutions, and OptiFreight® Logistics, which are not significant enough individually to require reportable segment disclosure. Pharmaceutical and Specialty Solutions Global Medical Products and Distribution Other Revenue decline of 1% to 3% Previously decline of 2% to 4% Segment profit growth of 10% to 12% Previously growth of 4% to 6% Revenue growth of 2% to 4% Segment profit of $130M to $150M Previously $140M to $175M Revenue growth of 10% to 12% Segment profit growth of ~10%

• 11. 11 © 2025 Cardinal Health. All Rights Reserved. Build upon the growth and resiliency of Pharmaceutical and Specialty Solutions by expanding in Specialty Execute GMPD Improvement Plan initiatives Accelerate growth in key areas • Q2 FY25 Earnings Relentless focus on simplification and shareholder value creation Strategic priorities

• 12. 12 © 2025 Cardinal Health. All Rights Reserved. Supporting community-based physicians with a comprehensive model • Q2 FY25 Earnings

• 13. 13 © 2025 Cardinal Health. All Rights Reserved. 13 © 2025 Cardinal Health. All Rights Reserved. Q2 FY25 Earnings Maintain investment grade balance sheet Investing back into the business to drive organic growth Baseline return of capital to shareholders • Continue to grow the dividend • Baseline share repurchases Active, disciplined and targeted M&A Additional opportunistic share repurchases Table stakes Opportunistic levers FY24 – FY26 FY25 Progress Credit ratings maintained by all 3 rating agencies post acquisition announcements $189M in YTD capex Disciplined Capital Allocation Framework ~$625M in baseline capital returned to shareholders • $375M of $500M FY25 baseline share repurchases • $250M in dividend payments Completed annual opioid settlement payment $250M of opportunistic share repurchases included in guidance 2 Announced three acquisitions 1 : • Integrated Oncology Network • GI Alliance • Advanced Diabetes Supply Group 1 ION closed December 2, 2024, and GIA closing January 30, 2025 2Total $750M ($500M baseline, $250M opportunistic); completed $375M total YTD

• 14. 14 © 2025 Cardinal Health. All Rights Reserved. Compelling investment thesis Moving healthcare forward Pharmaceutical and Specialty Solutions Resilient and growing business, supported by key trends and strong core foundation Investing to further accelerate Specialty growth Expecting 4% to 6% segment profit long-term growth CAGR Cash flow and capital deployment Continued robust adjusted free cash flow generation Responsible capital deployment includes disciplined and strategic M&A and significant return of capital to shareholders Value creation Relentlessly focused on maximizing shareholder value Continue to take actions to drive additional value creation Defensive growth: Resilient business models and double-digit non-GAAP EPS growth opportunity • Q2 FY25 Earnings Medical Products and Distribution Executing our plan to improve performance in Global Medical Products and Distribution Seeing momentum and expecting significant yearover-year improvement at-Home, NPHS & OptiFreight Favorable long-term industry trends Margin-accretive opportunities Investing to build upon their strong growth trajectories

• 15. 15 © 2025 Cardinal Health. All Rights Reserved. Focus areas to include: • Q2 FY25 Earnings Investor Day June 12, 2025 • Specialty strategy • Growth businesses • GMPD Improvement Plan • Long-term targets • Capital allocation framework Upcoming: Jason Hollar CEO Aaron Alt CFO Emily Gallo OptiFreight® Logistics Steve Mason GMPD Mike Pintek Nuclear & Precision Health Solutions Rob Schlissberg at-Home Solutions Debbie Weitzman Pharmaceutical & Specialty Solutions Featuring management including:

• 16. 16 © 2025 Cardinal Health. All Rights Reserved. 16 © 2025 Cardinal Health. All Rights Reserved. Appendix

• 17. 17 © 2025 Cardinal Health. All Rights Reserved. Gross Operating Earnings Net Diluted Margin SG&A2Earnings Before Provision for Earnings3Effective EPS3 Gross Growth Growth Operating Growth Income Income Net Growth Tax Diluted Growth Margin Rate SG&A2 Rate Earnings Rate Taxes Taxes Earnings 3 Rate Rate EPS3 Rate (in millions, except per common share amounts) GAAP $ 1,941 5 % $ 1,306 3 % $ 549 9 % $ 511 $ 110 $ 400 9 % 21.4 % $ 1.65 10 % Restructuring and employee severance - - 9 9 2 7 0.03 Amortization and other acquisition-related costs - - 105 105 27 78 0.32 Impairments and (gain)/loss on disposal of assets, net - - 3 3 1 2 0.01 Litigation (recoveries)/charges, net - - (31) (31) (12) (19) (0.08) Non-GAAP $ 1,941 5 % $ 1,306 3 % $ 635 9 % $ 597 $ 127 $ 468 1 % 21.4 % $ 1.93 2 % GAAP $ 1,854 10 % $ 1,268 8 % $ 505 N.M. $ 512 $ 143 $ 368 N.M. 27.9 % $ 1.50 N.M. Restructuring and employee severance - - 28 28 7 21 0.09 Amortization and other acquisition-related costs - - 63 63 17 46 0.19 Impairments and (gain)/loss on disposal of assets, net - - 1 1 (35) 36 0.15 Litigation (recoveries)/charges, net - - (11) (11) (5) (6) (0.03) Non-GAAP $ 1,854 10 % $ 1,269 7 % $ 585 17 % $ 592 $ 127 $ 464 22 % 21.4 % $1.89 31 % GAAP / Non-GAAP Reconciliation1 Cardinal Health, Inc. and Subsidiaries We generally apply varying tax rates depending on the item's nature and tax jurisdiction where it is incurred. 3 Attributable to Cardinal Health, Inc. 1 For more information on these measures, refer to the Use of Non-GAAP Measures and Definitions schedules. 2 Distribution, selling, general and administrative expenses. Second Quarter 2025 Second Quarter 2024 The sum of the components and certain computations may reflect rounding adjustments.

• 18. 18 © 2025 Cardinal Health. All Rights Reserved. Gross Operating Earnings Net Diluted Margin SG&A2Earnings Before Provision for Earnings3Effective EPS3 Gross Growth Growth Operating Growth Income Income Net Growth Tax Diluted Growth Margin Rate SG&A2 Rate Earnings Rate Taxes Taxes Earnings3 Rate Rate EPS3 Rate (in millions, except per common share amounts) GAAP $ 7,414 8 % $ 5,000 4 % $ 1,243 65% $ 1,201 $ 348 $ 852 N.M. 28.9 % $ 3.45 N.M. Shareholder cooperation agreement costs - (1) 1 1 - 1 - Restructuring and employee severance - - 175 175 41 134 0.54 Amortization and other acquisition-related costs - - 284 284 74 210 0.85 Impairments and (gain)/loss on disposal of assets, net 4 - - 634 634 47 587 2.38 Litigation (recoveries)/charges, net - - 78 78 5 73 0.30 Non-GAAP $ 7,414 8 % $ 5,000 4 % $ 2,414 16 % $ 2,372 $ 515 $ 1,856 21 % 21.7 % $ 7.53 29 % Cardinal Health, Inc. and Subsidiaries GAAP / Non-GAAP Reconciliation1 4 For fiscal 2024, impairments and (gain)/loss on disposals of assets, net includes pre-tax goodwill impairment charges of $675 million related to the GMPD segment. The net tax benefit related to these charges was $58 million and were included in the annual effective tax rate. The sum of the components and certain computations may reflect rounding adjustments. We generally apply varying tax rates depending on the item's nature and tax jurisdiction where it is incurred. Fiscal Year 2024 1 For more information on these measures, refer to the Use of Non-GAAP Measures and Definitions schedules. 2 Distribution, selling, general and administrative expenses. 3 Attributable to Cardinal Health, Inc.

• 19. 19 © 2025 Cardinal Health. All Rights Reserved. (in millions) 2025 2024 2025 2024 GAAP - Cash Flow Categories Net cash provided by/(used in) operating activities $ (400) $ 1,179 $ (2,047) $ 1,707 Net cash used in investing activities (976) (105) (1,064) (168) Net cash provided by/(used in) financing activities 2,331 (353) 1,791 (1,019) Effect of exchange rates changes on cash and equivalents (12) 6 (3) 1 Net increase/(decrease) in cash and equivalents $ 943 $ 727 $ (1,323) $ 521 Non-GAAP Adjusted Free Cash Flow Net cash provided by/(used in) operating activities $ (400) $ 1,179 $ (2,047) $ 1,707 Additions to property and equipment (99) (114) (189) (206) Payments related to matters included in litigation (recoveries)/charges, net 245 (27) 621 515 Non-GAAP Adjusted Free Cash Flow $ (254) $ 1,038 $ (1,615) $ 2,016 For more information on these measures, refer to the Use of Non-GAAP Measures and Definitions schedules. Second Quarter Year-to-Date Cardinal Health, Inc. and Subsidiaries GAAP / Non-GAAP Reconciliation - GAAP Cash Flow to Non-GAAP Adjusted Free Cash Flow

• 20. 20 © 2025 Cardinal Health. All Rights Reserved. (in millions) 2025 2024 2025 2024 2025 2024 Revenue Amount $ 50,849 $ 53,202 $ 3,154 $ 3,127 $ 1,283 $ 1,135 Growth rate (4)% 12 % 1 % 2 % 13 % 11 % Segment profit Amount $ 531 $ 495 $ 18 $ 11 $ 118 $ 106 Growth rate 7 % 10 % N.M. N.M. 11 % 10 % Segment profit margin 1.04% 0.93 % 0.57% 0.35 % 9.20% 9.34 % (in millions) 2025 2024 2025 2024 2025 2024 Revenue Amount $ 98,839 $ 103,790 $ 6,277 $ 6,159 $ 2,469 $ 2,186 Growth rate (5)% 12 % 2 % - % 13 % 10 % Segment profit Amount $ 1,061 $ 951 $ 26 $ 23 $ 222 $ 202 Growth rate 12 % 12 % 13 % N.M. 10 % 4 % Segment profit margin 1.07% 0.92 % 0.41% 0.37 % 8.99% 9.24 % The sum of the components and certain computations may reflect rounding adjustments. Year-to-Date Pharmaceutical and Specialty Solutions Global Medical Products and Distribution Other Cardinal Health, Inc. and Subsidiaries Segment Information Second Quarter Pharmaceutical and Specialty Solutions Global Medical Products and Distribution Other

• 21. 21 © 2025 Cardinal Health. All Rights Reserved. Forward Looking non-GAAP Measures In this document, the Company presents certain forward-looking non-GAAP metrics. The Company does not provide outlook on a GAAP basis because the items that the Company excludes from GAAP to calculate the comparable non-GAAP measure can be dependent on future events that are less capable of being controlled or reliably predicted by management and are not part of the Company’s routine operating activities. Additionally, management does not forecast many of the excluded items for internal use and therefore cannot create or rely on outlook done on a GAAP basis. The occurrence, timing and amount of any of the items excluded from GAAP to calculate non-GAAP could significantly impact the Company’s fiscal 2025 GAAP results. Over the past five fiscal years, the excluded items have impacted the Company’s EPS from $3.49 to $18.06, which includes a $17.54 charge related to the opioid litigation we recognized in fiscal 2020. Cardinal Health, Inc. and Subsidiaries

• 22. 22 © 2025 Cardinal Health. All Rights Reserved. Non-GAAP adjusted free cash flow: net cash provided by operating activities less payments related to additions to property and equipment, excluding settlement payments and receipts related to matters included in litigation (recoveries)/charges, net, as defined above, or other significant and unusual or non-recurring cash payments or receipts. Segment Profit margin: segment profit divided by segment revenue. Non-GAAP gross margin: gross margin, excluding LIFO charges/(credits). Non-GAAP distribution, selling, general and administrative expenses or Non-GAAP SG&A: distribution, selling, general and administrative expenses, excluding state opioid assessment related to prior fiscal years and shareholder cooperation agreement costs. Non-GAAP operating earnings: operating earnings excluding (1) LIFO charges/(credits), (2) state opioid assessment related to prior fiscal years, (3) shareholder cooperation agreement costs, (4) restructuring and employee severance, (5) amortization and other acquisition-related costs, (6) impairments and (gain)/loss on disposal of assets, net and (7) litigation (recoveries)/charges, net. Non-GAAP earnings before income taxes: earnings before income taxes excluding (1) LIFO charges/(credits), (2) state opioid assessment related to prior fiscal years, (3) shareholder cooperation agreement costs, (4) restructuring and employee severance, (5) amortization and other acquisition-related costs, (6) impairments and (gain)/loss on disposal of assets, net, (7) litigation (recoveries)/charges, net and (8) loss on early extinguishment of debt. Segment Profit: segment revenue minus (segment cost of products sold and segment distribution, selling, general, and administrative expenses). Cardinal Health, Inc. and Subsidiaries Definitions Growth rate calculation: growth rates in this report are determined by dividing the difference between current-period results and prior-period results by prior-period results. Interest and Other, net: other (income)/expense, net plus interest expense, net. Non-GAAP net earnings attributable t o Cardinal Health, Inc.: net earnings attributable to Cardinal Health, Inc. excluding (1) LIFO charges/(credits), (2) state opioid assessment related to prior fiscal years, (3) shareholder cooperation agreement costs, (4) restructuring and employee severance, (5) amortization and other acquisition-related costs, (6) impairments and (gain)/loss on disposal of assets, net, (7) litigation (recoveries)/charges, net and (8) loss on early extinguishment of debt, each net of tax. Non-GAAP diluted earnings per share attributable to Cardinal Health, Inc.: non-GAAP net earnings attributable to Cardinal Health, Inc. divided by diluted weighted-average shares outstanding. Non-GAAP effective tax rate: provision for income taxes adjusted for the tax impacts of (1) LIFO charges/(credits), (2) state opioid assessment related to prior fiscal years, (3) shareholder cooperation agreement costs, (4) restructuring and employee severance, (5) amortization and other acquisition-related costs, (6) impairments and (gain)/loss on disposal of assets, net, (7) litigation (recoveries)/charges, net and (8) loss on early extinguishment of debt divided by (earnings before income taxes adjusted for the eight items above).

• 23. 23 © 2025 Cardinal Health. All Rights Reserved. 2 State opioid assessments related to prior fiscal years is the portion of state assessments for prescription opioid medications that were sold or distributed in periods prior to the period in which the expense is incurred. This portion is excluded from non-GAAP financial measures because it is retrospectively applied to sales in prior fiscal years and inclusion would obscure analysis of the current fiscal year results of our underlying, ongoing business. Additionally, while states' laws may require us to make payments on an ongoing basis, the portion of the assessment related to sales in prior periods are contemplated to be one-time, nonrecurring items. Income from state opioid assessments related to prior fiscal years represents reversals of accruals due to changes in estimates or when the underlying assessments were invalidated by a Court or reimbursed by manufacturers. Cardinal Health, Inc. and Subsidiaries Definitions continued 6 Impairments and gain or loss on disposal of assets, net are excluded because they do not occur in or reflect the ordinary course of our ongoing business operations and are inherently unpredictable in timing and amount, and in the case of impairments, are non-cash amounts, so their exclusion facilitates comparison of historical, current and forecasted financial results. 7 Litigation recoveries or charges, net are excluded because they often relate to events that may have occurred in prior or multiple periods, do not occur in or reflect the ordinary course of our business and are inherently unpredictable in timing and amount. 8 Loss on early extinguishment of debt is excluded because it does not typically occur in the normal course of business and may obscure analysis of trends and financial performance. Additionally, the amount and frequency of this type of charge is not consistent and is significantly impacted by the timing and size of debt extinguishment transactions. 1 LIFO charges and credits are excluded because the factors that drive last-in first-out ("LIFO") inventory charges or credits, such as pharmaceutical manufacturer price appreciation or deflation and year-end inventory levels (which can be meaningfully influenced by customer buying behavior immediately preceding our fiscal year-end), are largely out of our control and cannot be accurately predicted. The exclusion of LIFO charges and credits from non-GAAP metrics facilitates comparison of our current financial results to our historical financial results and to our peer group companies’ financial results. We did not recognize any LIFO charges or credits during the periods presented. 3 Shareholder cooperation agreement costs includes costs such as legal, consulting and other expenses incurred in relation to the agreement (the "Cooperation Agreement") entered into among Elliott Associates, L.P., Elliott International, L.P. (together, "Elliott") and Cardinal Health. These include costs incurred to negotiate and finalize the Cooperation Agreement and costs incurred by the Business Review Committee of the Board of Directors, formed under this Cooperation Agreement, tasked with undertaking a comprehensive review of our strategy, portfolio, capital allocation framework, and operations. We have excluded these costs from our non-GAAP metrics because they do not occur in or reflect the ordinary course of our ongoing business operations and may obscure analysis of trends and financial performance. The Cooperation Agreement expired in the second quarter of fiscal 2025. 4 Restructuring and employee severance costs are excluded because they are not part of the ongoing operations of our underlying business and include, but are not limited to, costs related to divestitures, closing and consolidating facilities, changing the way we manufacture or distribute our products, moving manufacturing of a product to another location, changes in production or business process outsourcing or insourcing, employee severance and realigning operations. 5 Amortization and other acquisition-related costs, which include transaction costs, integration costs, and changes in the fair value of contingent consideration obligations, are excluded because they are not part of the ongoing operations of our underlying business and to facilitate comparison of our current financial results to our historical financial results and to our peer group companies' financial results. Additionally, costs for amortization of acquisition-related intangible assets are noncash amounts, which are variable in amount and frequency and are significantly impacted by the timing and size of acquisitions, so their exclusion facilitates comparison of historical, current and forecasted financial results. We also exclude other acquisition-related costs, which are directly related to an acquisition but do not meet the criteria to be recognized on the acquired entity’s initial balance sheet as part of the purchase price allocation. These costs are also significantly impacted by the timing, complexity and size of acquisitions. Non-GAAP adjusted free cash flow: We provide this non-GAAP financial measure as a supplemental metric to assist readers in assessing the effects of items and events on our cash flow on a year-over-year basis and in comparing our performance to that of our peer group companies. In calculating this non-GAAP metric, certain items are excluded from net cash provided by operating activities because they relate to significant and unusual or non-recurring events and are inherently unpredictable in timing and amount. We believe adjusted free cash flow is important to management and useful to investors as a supplemental measure as it indicates the cash flow available for working capital needs, debt repayments, dividend payments, share repurchases, strategic acquisitions, or other strategic uses of cash. A reconciliation of our GAAP financial results to Non-GAAP adjusted free cash flow is provided in Schedule 6 of the financial statement tables included with this release. The tax effect for each of the items listed above is determined using the tax rate and other tax attributes applicable to the item and the jurisdiction(s) in which the item is recorded. The gross, tax and net impact of each item are presented with our GAAP to non-GAAP reconciliations.