Revenue flow

Margins

Stage	EA	% of rev	KVUE	% of rev	Gap · A − B
Revenue	$2.0B	100.00%	$3.9B	100.00%	KVUE ×1.96
Gross profit	$1.7B	86.20%	$2.3B	59.55%	EA +26.7pp
Operating income	$513M	25.83%	$706M	18.17%	EA +7.7pp
Pre-tax income	$530M	26.69%	$609M	15.67%	EA +11.0pp
Net income	$397M	19.99%	$430M	11.07%	EA +8.9pp

Stage	EA	KVUE	Gap · A − B
Revenue	$2.0B100.00%	$3.9B100.00%	KVUE ×1.96
Gross profit	86.20%$1.7B	59.55%$2.3B	EA +26.7pp
Operating income	25.83%$513M	18.17%$706M	EA +7.7pp
Pre-tax income	26.69%$530M	15.67%$609M	EA +11.0pp
Net income