Financials

Note: The above unaudited pro forma condensed consolidated statement of operations exclude the effects of the following:

For all periods presented:

• Amortization of purchased product rights.
• Provision for income taxes adjusted to an effective tax rate of zero on losses and 30% on income.

For the three and nine months ended September 30, 2001:

• Amortization of goodwill and other purchased intangibles.
• Net gain on disposition of long-term strategic investments ($1.4M).
• Write-down of long-term strategic investments ($1.7M) and ($7.8M) for the three and nine months ended September 30, 2001, respectively.

For the nine months ended September 30, 2001:

• Impairment of purchased products rights, goodwill and other purchased intangibles ($327.0M).
• Restructuring charges totalling $65.5M including: expenses associated with the workforce reduction ($13.5M), closure of facilities ($38.2M), and expenses related to the discontinuance of non-core products and programs ($13.8M).
• Special non-recurring charges including: workforce related expenses for restructuring-related employee relocations, CEO bonus and hiring fees ($4.1M), write-down of fixed assets and leasehold improvements related to facilities closures ($13.5M), expenses related to the write-off accounts receivable and increase in the allowance for doubtful accounts ($11.0M), and expenses and impairment of assets related to rebranding and expenses related to the discontinuance of non-core products and programs ($6.4M).

For the nine months ended September 30, 2002:

• Write-down of long-term strategic investments ($1.2M).
• Reduction of restructuring charges of $1.1M to reflect negotiated savings and expense mitigation on contractual obligations.
• Reduction of special non-recurring charges to reflect savings realized on expenses related to rebranding and the discontinuance of non-core products and programs ($0.3M)