Fourth-Quarter and Full-Year 2019 Orphan and Rheumatology Segment Results
GAAP to Non-GAAP Reconciliation
Net Income (Loss) and Non-GAAP Net Income - Three and Twelve Months Ended December 31
HORIZON
$ in thousands
Three Months Ended December 31,
2019
2018
Twelve Months Ended December 31,
2019
2018
GAAP net income (loss)
Non-GAAP adjustments:
Acquisition/divestiture-related costs
$
592,769
$
101,648
$
573,020
$
(38,380)
Restructuring and realignment costs
942
204
(1,710)
462
3,556
237
4,396
15,350
Amortization and step-up:
Intangible amortization expense
57,662
61,125
230,424
243,634
Inventory step-up expense
99
89
17,312
Amortization of debt discount and deferred financing costs
5,533
5,872
22,602
22,752
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
Depreciation
2,159
1,499
6,733
6,126
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
63
1,275
457
2,855
Charges relating to discontinuation of Friedreich's ataxia program
(145)
(2,940)
1,076
(1,464)
Total of pre-tax non-GAAP adjustments
91,422
74,579
438,552
435,609
Income tax effect of pre-tax non-GAAP adjustments
(14,277)
(57,961)
(66,568)
(45,186)
Other non-GAAP income tax adjustments
(553,334)
(1,499)
(554,786)
(37,392)
Total of non-GAAP adjustments
(476,189)
15,119
(182,802)
353,031
Non-GAAP Net Income
$
116,580
$
116,767
$
390,218 $
314,651
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