Beckman Coulter's 4th Quarter and Full Year 2007 Revenue Grows 10.8% and 9.2%, Respectively; 2007 Earnings Per Share Be...(cash flows from $460.5 million to $420.7...),Health

Non-GAAP Financial Measures

"GAAP" refers to financial information presented in accordance with generally accepted accounting principles in the United States.

To supplement the condensed consolidated financial statements and discussion presented on a GAAP basis, this press release includes non-GAAP financial measures with respect to the quarters and years ended December 31, 2007 and 2006 and with respect to Outlook for 2008. The company reported the following non-GAAP financial measures: "adjusted operating income," "adjusted operating income as a percentage of revenue," "adjusted net earnings" and related "adjusted diluted earnings per share," "EBITDA," "free cash flow" and "constant currency growth." The company also provided its outlook for 2008 for "adjusted operating margin," "adjusted pretax profit growth," "adjusted tax rate" and "adjusted earnings per diluted share." These non-GAAP financial measures are not in accordance with, or an alternative for, GAAP.

Adjusted operating income excludes the impact of charges or write-offs associated with acquisitions, restructuring, or relocations in connection with our supply chain improvement initiatives, licenses for research and development as described above, gains or losses upon sale of assets or businesses and other operating income and expense items that we do not expect to be recurring. Some of the items excluded may be beyond the control of management and are less predictable than our core performance. Although management expects to incur costs for its supply chain initiatives in 2008 and 2009, management has not developed plans for those initiatives in sufficient detail to estimate the costs to be incurred in those periods and believes that those costs are not reflective of the ongoing performance of the core business. Management uses adjusted operating income to prepare operating budgets and forecasts and to measure our performance
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