Bausch+Lomb Results Presentation Deck
Non-GAAP Appendix
Adjusted EBITDA (non-GAAP) Adjustments
Adjusted EBITDA (non-GAAP) is net income (loss) attributable to the
Company (its most directly comparable GAAP financial measure) adjusted
for interest expense, net, (benefit from) provision for income taxes,
depreciation and amortization and the following items:
Asset impairments: The Company has excluded the impact of impairments of
finite-lived and indefinite-lived intangible assets as such amounts are inconsistent in
amount and frequency and are significantly impacted by the timing and/or size of
acquisitions and divestitures. The Company believes that the adjustments of these
items correlate with the sustainability of the Company's operating performance.
Although the Company excludes impairments of intangible assets from measuring
the performance of the Company and its business, the Company believes that it is
important for investors to understand that intangible assets contribute to revenue
generation.
Restructuring and integration costs: The Company has incurred restructuring
costs as it implemented certain strategies, which involved, among other things,
improvements to its infrastructure and operations, internal reorganizations and
impacts from the divestiture of assets and businesses. With regard to infrastructure
and operational improvements which the Company has taken to improve efficiencies
in the businesses and facilities, these tend to be costs intended to right size the
business or organization that fluctuate significantly between periods in amount, size
and timing, depending on the improvement project, reorganization or transaction.
The Company believes that the adjustments of these items provide supplemental
information with regard to the sustainability of the Company's operating
performance, allow for a comparison of the financial results to historical operations
and forward-looking guidance and, as a result, provide useful supplemental
information to investors.
Acquisition-related costs and adjustments excluding amortization of
intangible assets: The Company excludes the impact of acquisition-related
contingent consideration non-cash adjustments due to the inherent uncertainty and
volatility associated with such amounts based on changes in assumptions with
respect to fair value estimates, and the amount and frequency of such adjustments
are not consistent and are significantly impacted by the timing and size of the
Company's acquisitions, as well as the nature of the agreed-upon consideration.
There were no adjustments for Acquisition-related costs and adjustments excluding
amortization of intangible assets for any of the periods presented.
Share-based compensation: The Company has excluded costs relating to share-
based compensation. The Company believes that the exclusion of share-based
compensation expense assists investors in the comparisons of operating results to
peer companies. Share-based compensation expense can vary significantly based
on the timing, size and nature of awards granted.
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