Bausch+Lomb Results Presentation Deck
Non-GAAP Appendix
Adjusted EBITDA (non-GAAP) Adjustments (continued)
Separation costs and separation-related costs: The Company has excluded certain
costs incurred in connection with activities taken to: (i) separate the Bausch + Lomb
business from the remainder of BHC and (ii) register the Bausch + Lomb business as an
independent publicly traded entity. Separation costs are incremental costs directly related
to effectuating the separation of the Bausch + Lomb business from the remainder of BHC
and include, but are not limited to, legal, audit and advisory fees, talent acquisition costs
and costs associated with establishing a new board of directors and audit committee.
Separation-related costs are incremental costs indirectly related to the separation of the
Bausch+Lomb business from the remainder of BHC and include, but are not limited to,
IT infrastructure and software licensing costs, rebranding costs and costs associated with
facility relocation and/or modification. As these costs arise from events outside of the
ordinary course of continuing operations, 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.
Other Non-GAAP adjustments: The Company also excludes certain other amounts,
including IT infrastructure investment, litigation and other matters, gain/(loss) on sales of
assets and certain other amounts that are the result of other, non-comparable events to
measure operating performance if and when present in the periods presented. These
events arise outside of the ordinary course of continuing operations. Given the unique
nature of the matters relating to these costs, the Company believes these items are not
routine operating expenses. For example, legal settlements and judgments vary
significantly, in their nature, size and frequency, and, due to this volatility, the Company
believes the costs associated with legal settlements and judgments are not routine
operating expenses. The Company has also excluded certain other costs, including
settlement costs associated with the conversion of a portion of the Company's defined
benefit plan in Ireland to a defined contribution plan. The Company excluded these costs
as this event is outside of the ordinary course of continuing operations and is infrequent in
nature. The Company believes that the exclusion of such out-of-the-ordinary-course
amounts provides supplemental information to assist in the comparison of the financial
results of the Company from period to period and, therefore, provides useful
supplemental information to investors. However, investors should understand that many
of these costs could recur and that companies in our industry often face litigation.
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