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The reconciliation table is based in part on management's estimate of non-GAAP net income for the year ending December 31, 2013. Actavis expects certain known GAAP charges for 2013, as presented in the schedule above. Other GAAP charges that may be excluded from non-GAAP net income are possible, but their amounts are dependent on numerous factors that we currently cannot ascertain with sufficient certainty or are presently unknown. These GAAP charges are dependent upon future events and valuations that have not yet been performed.
The following table presents a reconciliation of forecasted net income for the twelve months ending December 31, 2013 to adjusted EBITDA:Table 7Actavis, Inc.Reconciliation Table - Forecasted Adjusted EBITDA(Unaudited; in millions)Forecast for Twelve Months
Ending December 31, 2013LowHighGAAP net income
$
440$
490Plus:Interest expense
215215Interest income
(1)(1)Provision for income taxes
185200Depreciation (includes accelerated depreciation)
195195Amortization
625630EBITDA
1,6591,729Adjusted for:Global supply chain initiative
66Acquisition and licensing charges
150150Non-cash impairment charges Non-recurring (gains) losses Share-based compensation
5555Adjusted EBITDA
$
,870$
,940The reconciliation table is based in part on management's estimate of adjusted EBITDA for the year ending December 31, 2013. Actavis expects certain known GAAP charges for 2013, as presented in the schedule above. Other GAAP charges that may be excluded from estimated EBITDA are possible, but their amounts are dependent on numerous factors that we currently cannot ascertain with sufficient certainty or are presently unknown. These GAAP charges are dependent upon future events and valuations that have not yet been performed.
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