Administrative Expenses 5,900 43,700 26,900 54,800
Research and Development
Expenses - 5,200 200 13,500
Total Productivity
Initiatives Charges $117,100 $80,200 $209,500 $154,800
Productivity Initiatives
Charges, After-tax $86,000 $54,900 $152,500 $106,400
Decrease in Diluted
Earnings per Share $0.06 $0.04 $0.11 $0.08
Income Tax Adjustment
Included in the 2006 third quarter and first nine months is an income
tax adjustment of $70.4 million ($0.05 per share-diluted) related to
the reduction of certain deferred tax asset valuation allowances.
Wyeth calculates net income before certain significant items by
excluding the after-tax effect of items considered by management to
be unusual from the net income reported under generally accepted
accounting principles (GAAP). Wyeth's management uses this measure
to manage and evaluate the Company's performance and believes it is
appropriate to disclose this non-GAAP measure to assist investors
with analyzing business performance and trends. The productivity
initiatives charges, which include costs associated with the Global
Business Operations initiative, the costs of closing certain
manufacturing facilities, including accelerated depreciation, certain
reorganization expenses and the elimination of certain positions at
the Company's facilities, and the income tax adjustment related to
the reduction of certain deferred tax asset valuation allowances have
been excluded as they are not considered to be indicative of
continuing operating results. Wyeth's management believes that
excluding thes
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