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Watson Second Quarter 2011 Net Revenue Exceeds $1 Billion; Non-GAAP EPS of $1.01
Date:7/26/2011

ity investments

0.894.6Proceeds from sale of marketable securities

2.97.3Additions to marketable securities

(1.5)(4.3)Additions to long-term investments

-(17.1)Other investing activities, net

0.61.0Net cash (used in) provided by investing activities

(609.2)43.4CASH FLOWS FROM FINANCING ACTIVITIES:Principal payments on debt and other long-term liabilities

-(4.3)Principal payments on revolving loan and acquired debt

(28.8)(220.0)Proceeds from borrowings on credit facility

250.0-Repurchase of common stock

(11.1)(4.6)Acquisition of noncontrolling interest

(5.5)-Proceeds from stock plans

42.625.5Excess tax benefit from stock-based compensation

9.9-Net cash provided by (used in) financing activities

257.1(203.4)Effect of currency exchange rate changes on cash and cash equivalents

2.6(2.7)Net increase in cash and cash equivalents

(57.7)23.4Cash and cash equivalents at beginning of period

282.8201.4Cash and cash equivalents at end of period

$
225.1$
224.8The following table presents a reconciliation of reported net income and diluted earnings per share to non-GAAP net income for the three and six months ended June 30, 2011 and 2010:

Table 4Watson Pharmaceuticals, Inc.Reconciliation Table(Unaudited; in millions except per share amounts)Three Months EndedJune 30,Six Months EndedJune 30,2011201020112010GAAP to non-GAAP net income calculationReported GAAP net income attributable to
 common shareholders

$
52.7$
70.6$
98.0$
40.4Adjusted for:Amortization

74.943.1132.082.1Global supply chain initiative(1)

3.515.512.120.7Acquisition and licensing charges

8.72.013.321.4Interest accretion on contingent liabilities

9.86.818.813.4Non-cash impairment charges

7.40.121.81.1Other (gains) losses

(1.5)(1.4)(7.2)(24.8)Legal settlements

---3.0Income taxes on items above

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SOURCE Watson Pharmaceuticals, Inc.
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