represent significant one-time charges during the fourth quarter of
2007 and do not reflect expected on-going operating expenses.
Accordingly, management excluded these charges for purposes of
calculating these non-GAAP measures to facilitate an evaluation of the
Company's current operating performance and for comparison to the
Company's past operating performance.
-- Amortization expense -- Amortization expense is a non-cash charge and
does not impact the Company's liquidity or compliance with the
covenants included in its debt agreements. Following the Company's
acquisition of Guidant, and the related increase in the Company's debt,
management has heightened its focus on cash generation and debt pay
down. Management removes the impact of amortization from the Company's
operating performance to assist in assessing the Company's cash
generated from operations. Management believes this is a critical
metric for the Company in measuring the Company's ability to generate
cash and pay down debt. Therefore, amortization expense is excluded
from management's assessment of operating performance and is also
excluded from the measures management uses to set employee
compensation. Accordingly, management believes this may be useful
information to users of its financial statements and therefore has
excluded these charges for purposes of calculating these non-GAAP
measures to facilitate an evaluation of the Company's current operating
performance, particularly in terms of liquidity.
-- Foreign exchange on net sales -- The impact of foreign exchange is
highly variable and difficult to predict. Accordingly, management
excludes the impact of foreign exchange for purposes of reviewing
regional and divisional revenue growth rates to facilitate an<
|SOURCE Boston Scientific Corporation|
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