Financials

Note: The above unaudited pro forma condensed consolidated statements of operations are adjusted for income taxes to an effective tax rate pf zero on losses and 30% on income and exclude the effects of the following:

For all periods presented:

• Acquired in-process research and development, amortization of purchased product rights, goodwill and other purchased intangibles.

For the three and twelve months ended December 31, 2001:

• Write-down of strategic investments ($3.3M) and ($11.1M) for the three and twelve months ended December 31, 2001, respectively.
• Special non-recurring charges related to the write-off of accounts receivable and increase in allowance for doubtful accounts ($3.3 recovery) and ($7.7M net expense) for the three and twelve months ended December 31, 2001, respectively.

For the twelve months ended December 31, 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), and expenses and impairment of assets related to rebranding and the discontinuance of non-core products and programs ($6.4M).
• Net gain on disposition of strategic long-term investment ($1.4M).