Advanced Medical Optics (EYE)

Approximately $5.4 million of pre-tax stock-based compensation expense was included in
restructuring charges in the consolidated statement of operations in 2008 due to acceleration of vesting of certain awards in connection with the restructuring.

FACE="Times New Roman" SIZE="2">At December 31, 2008, total pre-tax compensation costs related to unvested stock-based awards granted to employees and directors under the Company’s ICP, SIP and ESPP which are not yet recognized was
approximately $29.7 million, net of estimated forfeitures. These costs are expected to be recognized over a weighted-average period of 2.30 years.

SIZE="2">Net cash proceeds from the exercise of stock options were approximately $2.2 million for the year ended December 31, 2008. In accordance with SFAS 123R, the cash flows resulting from excess tax benefits (tax benefits related to the
excess of tax deductions from employee exercises of stock options over the stock-based compensation cost recognized for those options) are classified as financing cash flows in the Company’s consolidated statement of cash flows. During the
year ended December 31, 2008, the Company recorded $6.0 million of excess tax benefits as a financing cash inflow. The Company issues new shares to satisfy option exercises.

FACE="Times New Roman" SIZE="2">Voluntary Stock Option Cancellation

On December 10, 2008, 50 members of AMO’s senior
management voluntarily forfeited an aggregate of 785,730 stock options (both vested and unvested) having exercise prices of greater than $40 per share. This action was initiated by management to reduce future expense (2009 and beyond) associated
with the initial grant of such stock options in light of the fact that these options may not deliver compensation to the executives that is equivalent to the expense of the grant, which will burden the Company’s statement of operations over the
next two to three years, and to more efficiently utilize shares authorized under AMO’s equity compensation plans to meet the plans’ purposes to attract, motivate and retain key talent. The individuals who forfeited options received nothing
in return, and were promised nothing in return, such as future equity grants to replace the forfeited options. No new equity grants have been made to members of the Company’s senior management since May 2008, and the Company has no plans to
vary its equity grant practices as a result of this forfeiture. In accordance with SFAS 123R, the Company accelerated the remaining expense on these cancelled awards that resulted in pre-tax charges of approximately $0.2 million recorded in cost of
sales, $1.0 million recorded in research and development and $4.7 million recorded in selling, general and administrative expense, which is included in the total stock-based compensation expense of $35.0 million. This cancellation created tax
shortfalls that resulted in the reversal of $2.5 million of prior period deferred tax assets and the reversal of $2.3 million of deferred tax assets recorded in the current period. The reversal of these deferred tax assets resulted in a decrease to
additional paid-in capital as the Company has a sufficient windfall tax pool.

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Approximately $5.4 million of pre-tax stock-based compensation expense was included in
restructuring charges in the consolidated statement of operations in 2008 due to acceleration of vesting of certain awards in connection with the restructuring.

FACE="Times New Roman" SIZE="2">At December 31, 2008, total pre-tax compensation costs related to unvested stock-based awards granted to employees and directors under the Company’s ICP, SIP and ESPP which are not yet recognized was
approximately $29.7 million, net of estimated forfeitures. These costs are expected to be recognized over a weighted-average period of 2.30 years.

SIZE="2">Net cash proceeds from the exercise of stock options were approximately $2.2 million for the year ended December 31, 2008. In accordance with SFAS 123R, the cash flows resulting from excess tax benefits (tax benefits related to the
excess of tax deductions from employee exercises of stock options over the stock-based compensation cost recognized for those options) are classified as financing cash flows in the Company’s consolidated statement of cash flows. During the
year ended December 31, 2008, the Company recorded $6.0 million of excess tax benefits as a financing cash inflow. The Company issues new shares to satisfy option exercises.

FACE="Times New Roman" SIZE="2">Voluntary Stock Option Cancellation

On December 10, 2008, 50 members of AMO’s senior
management voluntarily forfeited an aggregate of 785,730 stock options (both vested and unvested) having exercise prices of greater than $40 per share. This action was initiated by management to reduce future expense (2009 and beyond) associated
with the initial grant of such stock options in light of the fact that these options may not deliver compensation to the executives that is equivalent to the expense of the grant, which will burden the Company’s statement of operations over the
next two to three years, and to more efficiently utilize shares authorized under AMO’s equity compensation plans to meet the plans’ purposes to attract, motivate and retain key talent. The individuals who forfeited options received nothing
in return, and were promised nothing in return, such as future equity grants to replace the forfeited options. No new equity grants have been made to members of the Company’s senior management since May 2008, and the Company has no plans to
vary its equity grant practices as a result of this forfeiture. In accordance with SFAS 123R, the Company accelerated the remaining expense on these cancelled awards that resulted in pre-tax charges of approximately $0.2 million recorded in cost of
sales, $1.0 million recorded in research and development and $4.7 million recorded in selling, general and administrative expense, which is included in the total stock-based compensation expense of $35.0 million. This cancellation created tax
shortfalls that resulted in the reversal of $2.5 million of prior period deferred tax assets and the reversal of $2.3 million of deferred tax assets recorded in the current period. The reversal of these deferred tax assets resulted in a decrease to
additional paid-in capital as the Company has a sufficient windfall tax pool.

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At December 31, 2007, total pre-tax compensation costs related to unvested stock-based awards
granted to employees and directors under the Company’s ICP, SIP and ESPP which are not yet recognized were approximately $37.3 million, net of estimated forfeitures. These costs are expected to be recognized over a weighted-average period of
5.56 years.

Net cash proceeds from the exercise of stock options were approximately $16.6 million for the year ended December 31,
2007. In accordance with SFAS 123R, the cash flows resulting from excess tax benefits (tax benefits related to the excess of proceeds from employee exercises of stock options over the stock-based compensation cost recognized for those options) are
classified as financing cash flows in the Company’s consolidated statement of cash flows. During the year ended December 31, 2007, the Company recorded no excess tax benefits as a financing cash inflow. The Company issues new shares
to satisfy option exercises.