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Hospira Reports Third-Quarter 2012 Results
Date:11/7/2012

ges 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: $58.6 million reported in Cost of products sold resulting from acquisitions including Mayne Pharma, Javelin Pharma, and a generic injectible business by Hospira India.(D)

Impairment of certain assets: $18.4 million reported in Restructuring, impairment and (gain) on disposition of assets, net, related to impairments of certain intangible assets.(E)

Certain quality and product related charges reported in Cost of products sold primarily include third party oversight and consulting costs, extended production downtime related costs, device product review and remediation costs to address identified issues, and costs for corrective actions. These charges are directly associated with Hospira's response to the FDA warning letter and charges related to certain device related remediation activities.(F)

Capacity expansion related charges reported in Cost of products sold include start-up charges related to manufacturing capacity expansion in India.(G)

Other restructuring charges: $7.8 million reported in Restructuring, impairment and (gain) on disposition of assets, net for distribution contract termination charges related to certain Latin America operations.(H)

Goodwill impairment: $155.0 million reported in Restructuring, impairment and (gain) on disposition of assets, net related to Hospira's EMEA reporting unit.(I)

Settlement of IRS tax audit benefit of $19.7 million reported in Income tax expense. This discrete income tax benefit is related to the completion and effective settlement of U.S. tax return au
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SOURCE Hospira, Inc.
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