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Reconciliation of Net Income / (Loss) to Adjusted EBITDA
(In thousands of U.S. dollars)
(Unaudited)
Quarter Ended Year Ended
Dec-31-07 Dec-31-06 Dec-31-07 Dec-31-06
RECONCILIATION TO ADJUSTED
EBITDA:
Net income / (loss) - GAAP $19,687 $(8,520) $28,875 $(153,510)
+ Interest expense, net 27,284 60,214 117,618 206,994
+ Provision for income taxes 12,195 (19,508) 18,416 (11,147)
+ Stepped up basis of inventory
in cost of sales - - - 1,464
+ Non-operating, sponsors'
management fees in SG&A - - - 31,173
+ Non-cash share-based
compensation expense 1,085 1,711 6,115 17,787
+ Depreciation 2,892 2,171 10,250 7,177
+ Amortization of intangible
assets 56,169 68,300 228,330 253,425
+ R&D milestone expense 500 - 14,500 3,000
+ Accretion on preferred stock
in subsidiary - - - 26,190
+ Litigation settlements - - 26,500 -
Adjusted EBITDA of WCL, as
defined $119,812 $104,368 $450,604 $382,553
+ Expenses of WCL and other 5,637 2,465 10,687 2,769
Adjusted EBITDA of Warner
Chilcott Holdings Company
III, Limited., as defined $125,449 $106,833 $461,291 $385,322
Note: Warner Chilcott Holdings Company III, Limited and certain of its
subsidiaries are parties to our credit agreement and the indenture
govern
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