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To exclude changes in fair value of financial instruments, net.(7)
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. The following tables provide a reconciliation of our reported (GAAP) statements of operations to our adjusted statements of operations for each of the twelve months ended December 31, 2010 and December 31, 2009 (in thousands, except per share data): Twelve Months Ended December 31, 2010
(unaudited)Actual Reported(GAAP) AdjustmentsAdjustedTotal Revenues$ 1,716,229
$ —$ 1,716,229Costs and expenses: Cost of revenues
504,757
(90,263)
(1)
414,494 Selling, general and administrative
547,605
(16,733)
(2)
530,872 Research and development
144,525
(24,362)
(3)
120,163 Impairment of other intangible assets35,000
(35,000)
(4)
— Acquisition-related items
18,976
(18,976)
(5)
—Operating income465,366
185,334650,700 Interest expense, net
46,601
(16,983)
(6)
29,618 Other income, net
(1,933)
(239)
(7)
(2,172)Income before income taxes420,698
202,556623,254 Income taxes
133,678
51,201
(8)
184,879Consolidated net income$ 287,020
$ 151,355$ 438,375Less: Net income attributable to noncontrolling interest(28,014)
—(28,014)Net income attributable to Endo Pharmaceuticals Holdings Inc.$ 259,006
151,355$ 410,361Diluted earnings per share
$ 2.20$ 3.48Diluted weighted average shares
117,951117,951Notes to reconciliation of our GAAP statements of operations to our adjusted statements of
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