Use and Economic Substance of Non-GAAP Financial Measures Used by Boston Scientific
Management uses these supplemental non-GAAP measures to evaluate performance period over period, to analyze the underlying trends in the Company's business, to assess its performance relative to its competitors, and to establish operational goals and forecasts that are used in allocating resources. In addition, management uses these non-GAAP measures to further its understanding of the performance of the Company's operating segments. The adjustments excluded from the Company's non-GAAP measures are consistent with those excluded from its reportable segments' measure of profit or loss. These adjustments are excluded from the segment measures that are reported to the Company's chief operating decision maker and are used to make operating decisions and assess performance.
The following is an explanation of each of the adjustments that
management excluded as part of its non-GAAP measures for the three and nine
month periods ending September 30, 2008 and September 30, 2007 and for the
forecasted three month period ending December 31, 2008, as well as reasons
for excluding each of these individual items:
-- Acquisition-related (credits) charges - These adjustments primarily
consist of a gain resulting from the receipt of an acquisition-related
milestone payment, purchased research and development, integration
costs associated with the Company's acquisition of Guidant, and a fair
value adjustment related to the sharing of proceeds feature of the
Abbott stock purchase. The acquisition-related milestone payment is one<
|SOURCE Boston Scientific Corporation|
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