Fourth-Quarter and Full-Year 2019 Orphan and Rheumatology Segment Results slide image

Fourth-Quarter and Full-Year 2019 Orphan and Rheumatology Segment Results

GAAP to Non-GAAP Reconciliation EBITDA and Adjusted EBITDA - Three and Twelve Months Ended December 31 HORIZON $ in thousands Three Months Ended December 31, 2019 2018 2019 Twelve Months Ended December 31, 2018 GAAP net income (loss) Depreciation Amortization and step-up: $ 592,769 2,159 $ 101,648 1,499 $ 573,020 $ 6,733 (38,380) 6,126 Intangible amortization expense Inventory step-up expense 57,662 61,125 99 230,424 243,634 89 17,312 Interest expense, net (including amortization of debt discount and deferred financing costs) 17,098 Benefit for income taxes EBITDA Other non-GAAP adjustments: Acquisition/divestiture-related costs (555,885) $ 113,803 $ 29,771 (49,054) 145,088 87,089 121,692 (593,244) (44,752) $ 304,111 $ 305,632 Restructuring and realignment costs 942 204 (1,710) 462 3,556 4,396 237 15,350 Impairment of long-lived assets 10,847 46,096 (Gain)/Loss on sale of assets (30,682) 10,963 (42,985) Share-based compensation 24,149 27,878 91,215 114,860 Litigation settlements 1,000 5,750 Upfront, progress and milestone payments related to license and collaboration agreements 9,073 (10) Fees related to refinancing activities 855 854 2,292 937 Loss on debt extinguishment 58,835 Drug substance harmonization costs Charges relating to discontinuation of Friedreich's ataxia program 63 (145) 1,275 457 2,855 (2,940) 1,076 (1,464) Total of other non-GAAP adjustments Adjusted EBITDA 26,068 $ 139,871 $ 5,984 151,072 178,704 145,785 $ 482,815 $ 451,417 45
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