Interest expense adjustment 3,750 (6) -
Income tax adjustment (19,515)(7) (10,982)(7)
36,743 19,983
ADJUSTED NET INCOME $75,594 $95,168
BASIC ADJUSTED INCOME PER COMMON SHARE $1.12 $1.45
DILUTED ADJUSTED INCOME PER COMMON SHARE $1.02 $1.25
WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING 67,665 65,806
WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING-ASSUMING DILUTION 74,286 75,835
Notes to Reconciliation of GAAP Net Income to Adjusted Net Income
(1) To exclude the on-going amortization of acquired intangible assets
($26.2M in 2008; $21.0M in 2007) and accelerated depreciation related
to restructuring ($1.7M in 2008).
(2) To exclude charges related to payment for research and development
collaboration, as well as other charges ($1.8M) related to severance
in 2008.
(3) To exclude charges related to employee severance costs.
(4) To exclude charges related to the acquisition of the licensed
technology in the oncology field.
(5) To exclude costs related to CIMA restructuring.
(6) To exclude an estimate of accrued interest related to the agreement in
principle reached with U.S. Attorney's Office in Philadelphia.
(7) To reflect the tax effect of pre-tax adjustments at the applicable tax
rates and certain other tax adjustments primarily related to changes
in valuation allowances and other changes in tax assets and
liabilities.
CEPHALON, INC. AND SUBSIDIARIES
CONSOLIDATED SALES DETAIL
(In thousands)
(Unaudited)
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