Use the Cheesecake Factory 10-K report and answer the question below:

1. Under Item 7 Management's Discussion and Analysis, what are the two adjustments the managers made to calculate non-GAAP net income? Why did the management make these adjustments?

Non-GAAP Measures Adjusted net income and adjusted diluted net income per share are supplemental measures of our performance that are not required by or presented in accordance with GAAP. These non-GAAP measures may not be comparable to similarly titled measures used by other companies and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. We calculate these non-GAAP measures by eliminating from net income and diluted net income per share the impact of items we do not consider indicative of our ongoing operations. We believe these adjusted measures provide additional information to facilitate the comparison of our past and present financial results. We utilize results that both include and exclude the identified items in evaluating business performance. Our inclusion of these adjusted measures should not be construed as an indication that our future results will be unaffected by unusual or infrequent items. In the future, we may incur expenses or generate income similar to the adjusted items. Following is a reconciliation from net income and diluted net income per share to the corresponding adjusted measures (in thousands, except per share data): 2018 Fiscal Year 2017 157,392 99,035 $ $ 2016 139,494 Net income After-tax impact from: Impairment of assets and lease terminations (1) Deferred tax revaluation) Adjusted net income 13,217 68 6,206 (38,525) 125.073 112,252 $ $ 139,562 2.14 $ 3.27 $ Diluted net income per share After-tax impact from: Impairment of assets and lease terminations (1) Deferred tax revaluation (2) Adjusted diluted net income per share 2.83 0.00 0.29 0.13 (0.80) 2.60 $ 243 $ $ 2.83 (1) Fiscal years 2018, 2017 and 2016 include pre-tax impairment of assets and lease terminations expense of $17.9 million, $10.3 million and $0.1 million, respectively. (See Note 1 of Notes to Consolidated Financial Statements in Part IV. Item 15 of this report for further discussion of these charges.) (2) Fiscal 2017 includes a $38.5 million benefit to our income tax provision related to the Tax Act. (See Note 15 for further discussion of income taxes.) Fiscal 2019 Outlook This discussion contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as codified in Section 27A of the Securities Act, and Section 21E of the Exchange Act and should be read in conjunction with our consolidated financial statements and related notes in Part IV. Item 15 of this report, the "Risk Factors included in Part I. Item 1 A of this report and the cautionary statements included throughout this report. We estimate adjusted diluted net income per share for fiscal 2019 will be between $2.54 and $2.70 based on an assumed comparable sales range of between 1% and 2% at The Cheesecake Factory restaurants. The adjusted diluted net income per share range excludes any gain or loss on investment in unconsolidated affiliates and includes approximately $4 million in additional expense related to our adoption of the new lease accounting standard, which equates to an approximately $0.08 impact. For fiscal 2019, we are estimating commodity cost inflation of about 1% to 2%, primarily driven by seafood, dairy and meat costs, wage rate inflation of approximately 6% and an effective tax rate of approximately 10%. We estimate diluted net income per share for the first quarter of fiscal 2019 will be between $0.58 and $0.62 based on an assumed comparable sales range of between 0.5% and 1.5% at The Cheesecake Factory restaurants. In fiscal 2019, we plan to open as many as six new The Cheesecake Factory restaurants, as well as the first location of Social Monk, our new fast casual concept. In addition to these Company-owned locations, we expect as many as five restaurants to open internationally under licensing agreements. In fiscal 2019, we currently estimate cash capital expenditures to range between $90 million and $ 100 million. Our estimate for capital expenditures for fiscal 2019 contemplates a net outlay of $47 million to $53 million for restaurants expected to be opened during 2/19/2020 https://www.sec.gov/Archives/edgan/data/887596/000110465919012501/a19-30057_110k.htm fiscal 2019, $33 million to $35 million for replacements, enhancements and capacity additions to our existing restaurants and approximately $10 million to $12 million for bakery and corporate infrastructure investments. Non-GAAP Measures Adjusted net income and adjusted diluted net income per share are supplemental measures of our performance that are not required by or presented in accordance with GAAP. These non-GAAP measures may not be comparable to similarly titled measures used by other companies and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. We calculate these non-GAAP measures by eliminating from net income and diluted net income per share the impact of items we do not consider indicative of our ongoing operations. We believe these adjusted measures provide additional information to facilitate the comparison of our past and present financial results. We utilize results that both include and exclude the identified items in evaluating business performance. Our inclusion of these adjusted measures should not be construed as an indication that our future results will be unaffected by unusual or infrequent items. In the future, we may incur expenses or generate income similar to the adjusted items. Following is a reconciliation from net income and diluted net income per share to the corresponding adjusted measures (in thousands, except per share data): 2018 Fiscal Year 2017 157,392 99,035 $ $ 2016 139,494 Net income After-tax impact from: Impairment of assets and lease terminations (1) Deferred tax revaluation) Adjusted net income 13,217 68 6,206 (38,525) 125.073 112,252 $ $ 139,562 2.14 $ 3.27 $ Diluted net income per share After-tax impact from: Impairment of assets and lease terminations (1) Deferred tax revaluation (2) Adjusted diluted net income per share 2.83 0.00 0.29 0.13 (0.80) 2.60 $ 243 $ $ 2.83 (1) Fiscal years 2018, 2017 and 2016 include pre-tax impairment of assets and lease terminations expense of $17.9 million, $10.3 million and $0.1 million, respectively. (See Note 1 of Notes to Consolidated Financial Statements in Part IV. Item 15 of this report for further discussion of these charges.) (2) Fiscal 2017 includes a $38.5 million benefit to our income tax provision related to the Tax Act. (See Note 15 for further discussion of income taxes.) Fiscal 2019 Outlook This discussion contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as codified in Section 27A of the Securities Act, and Section 21E of the Exchange Act and should be read in conjunction with our consolidated financial statements and related notes in Part IV. Item 15 of this report, the "Risk Factors included in Part I. Item 1 A of this report and the cautionary statements included throughout this report. We estimate adjusted diluted net income per share for fiscal 2019 will be between $2.54 and $2.70 based on an assumed comparable sales range of between 1% and 2% at The Cheesecake Factory restaurants. The adjusted diluted net income per share range excludes any gain or loss on investment in unconsolidated affiliates and includes approximately $4 million in additional expense related to our adoption of the new lease accounting standard, which equates to an approximately $0.08 impact. For fiscal 2019, we are estimating commodity cost inflation of about 1% to 2%, primarily driven by seafood, dairy and meat costs, wage rate inflation of approximately 6% and an effective tax rate of approximately 10%. We estimate diluted net income per share for the first quarter of fiscal 2019 will be between $0.58 and $0.62 based on an assumed comparable sales range of between 0.5% and 1.5% at The Cheesecake Factory restaurants. In fiscal 2019, we plan to open as many as six new The Cheesecake Factory restaurants, as well as the first location of Social Monk, our new fast casual concept. In addition to these Company-owned locations, we expect as many as five restaurants to open internationally under licensing agreements. In fiscal 2019, we currently estimate cash capital expenditures to range between $90 million and $ 100 million. Our estimate for capital expenditures for fiscal 2019 contemplates a net outlay of $47 million to $53 million for restaurants expected to be opened during 2/19/2020 https://www.sec.gov/Archives/edgan/data/887596/000110465919012501/a19-30057_110k.htm fiscal 2019, $33 million to $35 million for replacements, enhancements and capacity additions to our existing restaurants and approximately $10 million to $12 million for bakery and corporate infrastructure investments