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Effect of dilutive securities:
Conversion of CODES 14,357 - 14,357 -
Dilutive stock options 409 - 409 -
Diluted weighted average common
shares outstanding 117,374 101,892 117,039 101,761
Diluted earnings per share - Adjusted
Diluted earnings per share -
Adjusted $0.35 $0.25 $1.37 $1.02
Basic weighted average common
shares outstanding 102,608 101,892 102,273 101,761
Effect of dilutive securities:
Conversion of CODES 14,357 14,357 14,357 14,357
Dilutive stock options 409 222 409 234
Diluted weighted average common
shares outstanding 117,374 116,471 117,039 116,352
The following table presents a reconciliation of reported net income for the three and twelve months ended December 31, 2007 and 2006 to adjusted EBITDA:
Table 5
Watson Pharmaceuticals, Inc.
Adjusted EBITDA Reconciliation Table
(Unaudited; in millions)
Three Months Twelve Months
Ended December 31, Ended December 31,
2007 2006 2007 2006
GAAP net income (loss) $38.4 $(489.0) $141.0 $(445.0)
Plus:
Interest expense 9.0 11.6 44.5 22.1
Interest income (2.2) (5.6) (8.9) (28.4)
Provision for income
taxes 21.4 7.8 83.2 34.1
Depreciation 20.2 17.6 77.2 54.6
Amortization 44.2
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