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$
3,423$
-$
3,423$
9,861$
-$
9,861-14 %-14 %Cost of sales
77,5883,050
(a)
74,53890,2925,849
(a)
84,443-14 %-12 %Gross profit
25,8353,05028,88529,5695,84935,418-13 %-18 %Operating expenses
21,9524,250
(a)
17,70222,3283,615
(a)
18,713-2 %-5 %Operating income
$
3,883$
7,300$
,183$
7,241$
9,464$
,705-46 %-33 %Selected ratios as a percentage of net salesGross profit
25.0 %27.9 %24.7 %29.5 %Operating expenses
21.2 %17.1 %18.6 %15.6 %Operating income
3.8 %10.8 %6.0 %13.9 %Three Months EndedRx PharmaceuticalsSeptember 29, 2012September 24, 2011% ChangeGAAPNon-GAAP AdjustmentsAs AdjustedGAAPNon-GAAP AdjustmentsAs AdjustedGAAPAs AdjustedNet sales
$
2,942$
-$
2,942$
27,627$
-$
27,62728 %28 %Cost of sales
76,2588,402
(a)
67,85686,16734,532
(a,b)
51,635-11 %31 %Gross profit
86,6848,40295,08641,46034,53275,992109 %25 %Operating expenses
18,180-18,18016,975(344)
(c,d)
17,3197 %5 %Operating income
$
8,504$
8,402$
76,906$
24,485$
34,188$
58,673180 %31 %Selected ratios as a percentage of net salesGross profit
53.2 %58.4 %32.5 %59.5 %Operating expenses
11.2 %11.2 %13.3 %13.6 %Operating income
42.0 %47.2 %19.2 %46.0 %(a) Deal-related amortization(b) Inventory step-up of $27,179(c) Proceeds of $3,500 from sale of pipeline development projects(d) Severance costs of $3,156Table II (Continued)PERRIGO COMPANYREPORTABLE SEGMENTSRECONCILIATION OF NON-GAAP MEASURES(in thousands)(unaudited)Three Months EndedAPISeptember 29, 20
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