Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Actavis, Inc. | d251004d8k.htm |
| EX-99.1 - EX-99.1 - Actavis, Inc. | d251004dex991.htm |
Exhibit 99.2
Watson Pharmaceuticals, Inc.
Non-GAAP Reconciliation Table - Third Quarter Ended September 30, 2011
(in millions, except per share amounts)
| NON-GAAP ADJUSTMENTS | ||||||||||||||||||||||||||||||||
| GAAP Results | Amortization Expense (1) |
Acquisition & Licensing (2) |
Accretion Expense (3) |
Global Supply Chain (4) |
Impairments / Asset Sales (5) |
All Other (6) | Non-GAAP Results |
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| Net revenues |
$ | 1,081.6 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (2.4 | ) | $ | 1,079.2 | |||||||||||||||
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| Operating Expenses: |
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| Cost of Goods Sold (excludes amortization, presented below) |
603.2 | — | (7.9 | ) | — | (2.7 | ) | — | — | 592.6 | ||||||||||||||||||||||
| Research and development |
73.4 | — | (1.0 | ) | — | (0.4 | ) | — | — | 72.0 | ||||||||||||||||||||||
| Selling and marketing |
104.4 | — | — | — | — | — | — | 104.4 | ||||||||||||||||||||||||
| General and administrative |
85.2 | — | (0.6 | ) | — | (0.2 | ) | — | — | 84.4 | ||||||||||||||||||||||
| Amortization |
71.8 | (71.8 | ) | — | — | — | — | — | (0.0 | ) | ||||||||||||||||||||||
| Loss on asset sales and impairments, net |
3.8 | — | — | — | — | (3.8 | ) | — | — | |||||||||||||||||||||||
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| Total operating expenses |
941.8 | (71.8 | ) | (9.5 | ) | — | (3.3 | ) | (3.8 | ) | — | 853.4 | ||||||||||||||||||||
| Operating Income |
139.8 | 71.8 | 9.5 | — | 3.3 | 3.8 | (2.4 | ) | 225.8 | |||||||||||||||||||||||
| Other (expense) income: |
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| Interest income |
0.3 | — | — | — | — | — | — | 0.3 | ||||||||||||||||||||||||
| Interest expense |
(24.4 | ) | — | — | 11.0 | — | — | — | (13.4 | ) | ||||||||||||||||||||||
| Other income |
2.9 | 0.2 | — | (0.2 | ) | — | (2.7 | ) | 0.2 | |||||||||||||||||||||||
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| Total other (expense) income, net |
(21.2 | ) | 0.2 | — | 10.8 | — | — | (2.7 | ) | (12.9 | ) | |||||||||||||||||||||
| Income before income taxes and noncontrolling interest |
118.6 | 72.0 | 9.5 | 10.8 | 3.3 | 3.8 | (5.1 | ) | 212.9 | |||||||||||||||||||||||
| Provision for income taxes |
50.9 | 17.8 | 2.3 | 0.8 | 1.0 | (0.1 | ) | 1.9 | 74.6 | |||||||||||||||||||||||
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| Net Income |
67.7 | 54.2 | 7.2 | 10.0 | 2.3 | 3.9 | (7.0 | ) | 138.3 | |||||||||||||||||||||||
| Loss attributable to noncontrolling Interest |
0.4 | — | — | — | — | — | — | 0.4 | ||||||||||||||||||||||||
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| Net income attributable to common shareholders |
$ | 68.1 | $ | 54.2 | $ | 7.2 | $ | 10.0 | $ | 2.3 | $ | 3.9 | $ | (7.0 | ) | $ | 138.7 | |||||||||||||||
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| Diluted earnings per share |
$ | 0.54 | $ | 1.09 | ||||||||||||||||||||||||||||
| Diluited weighted average shares outstanding |
126.9 | 126.9 | ||||||||||||||||||||||||||||||
Explanation of reconciling items to arrive at non-GAAP financial results:
| 1. | Includes amortization expense of acquired intangible assets, such as product rights, and amortization of the excess purchase price of an equity method investments recorded in other income. |
| 2. | Consists of inventory step-up amortization of $7.3 in Cost of Goods Sold; fair value adjustments of certain contingent oblgations relating to the acquisition of our progesterone business from Columbia Labs of $0.6 and $1.0 in Cost of Goods Sold and Research and Development, respectively; Specifar related acquisition costs of $0.5 in General and Administrative; and, other acquisition and licensing expenses of $0.1 in General and Administrative. |
| 3. | Amount in interest expense represents a non-cash fair value adjustment related to the Company’s preferred stock of $4.2 and an adjustment to the fair value of contingent liabilities associated with the acquisitions of Arrow Group, the progesterone business from Columbia Labs and Specifar of $3.4, $2.0 and $1.4, respectively. These adjustments are based upon the passage of time and are classified as interest expense. Amount in other income represents a non-cash adjustment to the fair value of a contingent asset associated with the acquisition of Specifar of $0.2. |
| 4. | Represents amounts attributable to our global supply chain initiative to improve efficiencies within our Generics segment. The costs relate to manufacturing operations in Canada, India and Corona, CA and R&D facilities in Canada and Corona, CA. Amounts in Cost of Goods Sold include: $0.8 accelerated depreciation; $0.9 severance and retention; and $1.0 product transfer costs. Amounts in R&D include: $0.2 severance and retention; and $0.2 accelerated depreciation. Amounts in G&A include $0.2 severance and retention. |
| 5. | Includes loss on sale of an equity method investment of $2.4 and an impairment of equity method investment of $1.8, offset by gains on asset sales of $0.4. |
| 6. | Amount in Net Revenues includes $2.4 payment received relating to a divested business. Amount in Other Income includes $2.1 gain from the reversal of a reserve established in connection with a product divestiture that is no longer required and $0.6 relating to the revaluation of securities issued by an equity method investee. |