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 and transformation 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. Additionally, with the recent completion of the B+L
IPO, as the Company prepares for post-Separation operations, the Company is
launching certain transformation initiatives that will result in certain changes to and
investment in its organizational structure and operations. These transformation
initiatives arise outside of the ordinary course of continuing operations and, as is the
case with the Company's restructuring efforts, costs associated with these
transformation initiatives are expected to fluctuate between periods in amount, size
and timing. These out-of-the-ordinary-course charges include third party advisory
costs, as well as certain severance-related costs (including the severance costs
associated with the departure of the Company's current CEO). Investors should
understand that the outcome of these transformation initiatives may result in future
restructuring actions and certain of these charges could recur. 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.
Share-based compensation: The Company excludes 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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