Table 5Adjusted EBITDA Reconciliation Table(Unaudited; in millions)Three Months Ended
March 31,20112010GAAP net income
(0.8)(0.4)Provision for income taxes
41.336.7Depreciation (includes accelerated depreciation)
57.139.0EBITDA187.7190.1Adjusted for:Global supply chain initiative (2)
6.53.8Acquisition and licensing charges (3)
4.619.4Non-cash impairment charges (4)
14.41.0Other (gains) losses (5)
(5.7)(23.4)Legal settlements (6)
-3.0Share-based compensation (7)
98.9Notes:1. Amortization of acquired intangible assets, such as product rights, core technology and customer relationships, and amortization related to equity method investments recorded in other income (expense).
2. The global supply chain initiative relates to closing or restructuring operations to gain efficiencies and operational excellence. The types of expenses include employee separation costs, product transfer expenses and accelerated depreciation.
3. Acquisition and licensing include upfront payments for products under development and fair market adjustments related to contingent obligations.
4. Non-cash impairment charges recorded to write-down tangible or intangible assets to fair value.
5. Other (gains) losses are excluded from non-GAAP results.
6. Legal settlements include amount associated with significant matters not related to current operations.
7. Share-based compensation relates to a non-cash accounting expense resulting from the issuance of restricted stock or stock options to employees and directors. The following table presents a reconciliati
|SOURCE Watson Pharmaceuticals, Inc.|
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