At the bottom of the page, we have the lease adjustments so we can make sure that the US company figures are comparable with IFRS figures. The aim here is to make sure that we have operating lease liabilities treated as financial items, which is what IFRS does. The problem with the US GAAP is that they do show the operating lease liabilities on the balance sheet, but they don't treat them as a financial item on the income statement. So this is what this adjustment is trying to do is make sure that we treat all leases as financing items and then for the US GAAP companies make an adjustment to their EBITDA to add back the lease costs. So we need a few numbers here. We need the lease rental expense for operating leases for our income statement adjustment, and we need to make sure we include the operating lease liabilities and we have that in the additional financial information. So let's hop over to the 10 K filing for Dr. Pepper. So in the 10 K filing, I'm going to go to sections and I'm going to go to the leases note. And in the leases note, what we are looking for is the lease cost for operating leases. And you can see here we've got operating leases and then we have finance lease costs below. So what we want to include here are the operating lease costs for 2023, which is the 159 number. So I'm gonna pull the rent expense there 159. Below, you've got the finance lease costs 81 and 25. And then you have variable lease cost. This is often where we have variants. In some cases, if it's a retail lease, they may take a percentage of your sales here. But there's a little footnote that says, consists primarily of common area maintenance costs. I'm going to ignore that for the purposes of this analysis because it isn't determined whether it's related to the operating or financial. So I'm just going to take the 159 number. The next thing I want to do is I want to go to my breakdown of the further financial information. because here if we go further down, we can see that we've got the operating lease liabilities here. So for 2023, I'm gonna take the current operating lease liability of 114.

Then I'm going to add to that the long-term operat release liability of 793. So I'm just going to press F2, add 793, and then put an equal sign the very beginning of that. I'm just to do one link there. And then for my adjustment, I'm gonna use the Moody's assumption, which says that 33% of the 159 number is related to the interest expense. The rest would be the depreciation expense. And what that tries to do is convert the operating lease accounting into finance's accounting. So under operating this accounting under US GAAP, that $159 million number will be expense as part of cost goods sold and SG&A costs. We want to convert that into how the accounting would work for finance leases. So we are going to put 33% of the 159 number in interest expense and the 66% of that 159 number into depreciation expense. So I'm just going to copy that assumption to the right. And then we need to get our EBITDA plus rents. And you can see in the prior year, we've just taken the EBITDA number above and then we've added back the full rental expense because if that is now being interest and depreciation instead of operating costs, that would not be included in EBITDA. So we're just adding back the full operating lease costs there. We can recalculate the margin. And then for the lease adjusted debt, we'll just add in the operating lease liability to that too. And that will give us a new leverage ratio, a new invested capital ratio, and then we can calculate the return on invested capital in similar way to the other years. This return actually uses the beginning balance of investor capital budgets. I wanted to show how that works in terms of the calculation.

And then this can be used where we're comparing IFRS companies and US GAAP companies together.