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129,766519,790 Interest expense, net
37,718
(14,719)
(6)
22,999 Other (income) expense, net
(7,354)
7,585
(7)
231Income before income taxes359,660
136,900496,560 Income taxes
93,324
68,948
(8)
162,272Net income$
266,336
$ 67,952$ 334,288Diluted earnings per share
$
2.27$
2.84Diluted weighted average shares
117,515117,515Notes to reconciliation of our GAAP statements of operations to our adjusted statements of operations:(1)
To exclude amortization of commercial intangible assets related to marketed products of $62,931 and the impact of an Indevus inventory step-up recorded as part of acquisition accounting of $11,268.(2)
To exclude certain separation payments.(3)
To exclude upfront and milestone payments to partners.(4)
To exclude the impairment of AVEED and PRO2000 for $65,000 and $4,000, respectively.(5)
To exclude Indevus transaction and separation costs of $35,009 as well as the impact, under purchase accounting, of a gain recorded to reflect the change in the company's current estimate of fair value, in accordance with GAAP, of the contingent consideration associated with the Indevus acquisition of ($128,090).(6)
To exclude additional interest expense as a result of adopting ASC 470-20 of $15,781 and to exclude the amortization of the premium on debt acquired from Indevus of ($1,062).(7)
To exclude changes in fair value of financial instruments, net.(8)
To reflect the cash tax savings resulting from the Indevus acquisition and the tax effect of the pre-tax adjustments above at applicable tax rates.For an explanation of Endo's reasons for using non-GAAP measures, see Endo's Current Report on Form 8-K filed today with the Securities and Exchange Commission.
Reconciliation of Projected GAAP Diluted Earnings Per Share to
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