Bausch+Lomb Results Presentation Deck
Non-GAAP Appendix
Adjusted Net Income (non-GAAP)
Adjusted net income (non-GAAP) is net income (loss) attributable to Bausch +
Lomb Corporation (its most directly comparable GAAP financial measure) adjusted
for asset impairments, restructuring, integration and transformation costs,
acquisition-related contingent consideration, acquired in-process research and
development costs, separation costs and separation-related costs and other non-
GAAP adjustments, as these adjustments are described above and further
adjusted for amortization of intangible assets, as described below:
Amortization of intangible assets: The Company has excluded the impact
of amortization of intangible assets, as such amounts are inconsistent in
amount and frequency and are significantly impacted by the timing and/or size
of acquisitions. The Company believes that the adjustments of these items
correlate with the sustainability of the Company's operating performance.
Although the Company excludes the amortization of intangible assets from its
non-GAAP expenses, the Company believes that it is important for investors
to understand that such intangible assets contribute to revenue generation.
Amortization of intangible assets that relate to past acquisitions will recur in
future periods until such intangible assets have been fully amortized. Any
future acquisitions may result in the amortization of additional intangible
assets.
Adjusted net income (non-GAAP) excludes the impact of these certain items that
may obscure trends in the Company's underlying performance. Management uses
Adjusted net income (non-GAAP) for strategic decision making, forecasting future
results and evaluating current performance. By disclosing this non-GAAP
measure, it is management's intention to provide investors with a meaningful,
supplemental comparison of the Company's operating results and trends for the
periods presented. Management believes that this measure is also useful to
investors as such measure allows investors to evaluate the Company's
performance using the same tools that management uses to evaluate past
performance and prospects for future performance. Accordingly, the Company
believes that Adjusted net income (non-GAAP) is useful to investors in their
assessment of the Company's operating performance and the valuation of the
Company. It is also noted that, in recent periods, our GAAP net income (loss) was
significantly lower than our Adjusted net income (non-GAAP).
As with Adjusted EBITDA, prior to 2022, in calculating Adjusted Net Income, the
Company had excluded expenses associated with acquired IPR&D. However, for
the same reasons indicated above, commencing in 2022, the Company no longer
excludes acquired IPR&D in its calculation of Adjusted Net Income. Reference is
made to the description above for further details on this change.
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