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Hospira Reports Second-Quarter 2011 Results
Date:7/27/2011

justed financial measures (3)

$
871.5$
453.0$
304.1$
.80GAAP results for the six months ended June 30, 2010 include:(A)

Project Fuel and related charges: $7.7 million reported in Cost of products sold, $5.0 million reported in Restructuring, impairment and (gain) on disposition of assets, net, $0.3 million reported in Research and development and $8.1 million reported in Selling, general and administrative. Project Fuel initiatives include costs for process optimization implementation, severance and other employee benefits, exit costs, and other asset charges. These charges are offset by a $11.4 million gain reported in Restructuring, impairment and (gain) on disposition of assets, net related to the disposal of the non-strategic net assets associated with the Wasserburg, Germany, facility.(B)

Facilities Optimization charges: $4.1 million reported in Cost of products sold and $1.4 million reported in Restructuring, impairment and (gain) on disposition of assets, net. These charges relate to facilities optimization from the closure or departure from certain manufacturing and R&D facilities and include costs for severance and other employee benefits, accelerated depreciation and relocation of production and R&D operations.(C)

Amortization of certain intangible assets reported in Cost of products sold resulting from acquisitions including Mayne Pharma and a generic injectable business by Hospira India.(D)

Certain quality and product related charges reported in Cost of products sold primarily include third party oversight and consulting costs and penalties for failure to supply certain product to customers. These charges are directly associated with Hospira's response to the FDA Warning Letter received in April 2010.(E)

Acquisition and integration-related charges: $2.2 million rep
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SOURCE Hospira, Inc.
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