BSX » Topics » Pro Forma Results of Operations

These excerpts taken from the BSX 10-K filed Feb 28, 2008.
Pro Forma Results of Operations

The following unaudited pro forma information presents a summary of consolidated results of our operations
 
90

and Guidant’s, as if the acquisition, the Abbott transaction and the financing for the acquisition had occurred at the beginning of each of the periods presented. We have adjusted the historical consolidated financial information to give effect to pro forma events that are (i) directly attributable to the acquisition and (ii) factually supportable. We present the unaudited pro forma condensed consolidated financial information for informational purposes only. The pro forma information is not necessarily indicative of what the financial position or results of operations actually would have been had the acquisition, the sale of the Guidant vascular intervention and endovascular solutions businesses to Abbott and the financing transactions with Abbott and other lenders been completed at the beginning of each of the periods presented. Pro forma adjustments are tax-effected at our effective tax rate.
 
   
Year Ended December 31,
 
in millions, except per share data
 
2006
   
2005
 
   
(unaudited)
 
             
Net sales
  $ 8,533     $ 8,739  
Net loss
    (3,916 )     (4,287 )
                 
Net loss per share - basic
  $ (2.66 )   $ (2.92 )
Net loss per share - assuming dilution
  $ (2.66 )   $ (2.92 )
 
The unaudited pro forma net loss for  both periods presented includes $480 million for the amortization of purchased intangible assets, as well as the following non-recurring charges: purchased research and development of $4.169 billion; $267 million associated with the step-up value of acquired inventory sold; a tax charge for the drug-eluting stent license right obtained from Abbott; and $95 million for the fair value adjustment related to the sharing of proceeds feature of the Abbott stock purchase. In connection with the accounting for the acquisition of Guidant, we wrote up inventory acquired from manufacturing cost to fair value.

Pro Forma Results of
Operations



The
following unaudited pro forma information presents a summary of consolidated
results of our operations

 







90











and
Guidant’s, as if the acquisition, the Abbott transaction and the financing for
the acquisition had occurred at the beginning of each of the periods presented.
We have adjusted the historical consolidated financial information to give
effect to pro forma events that are (i) directly attributable to the
acquisition and (ii) factually supportable. We present the unaudited pro
forma condensed consolidated financial information for informational purposes
only. The pro forma information is not necessarily indicative of what the
financial position or results of operations actually would have been had the
acquisition, the sale of the Guidant vascular intervention and endovascular
solutions businesses to Abbott and the financing transactions with Abbott and
other lenders been completed at the beginning of each of the periods presented.
Pro forma adjustments are tax-effected at our effective tax rate.

 

























































































 
 
Year
Ended December 31,

 

in
millions, except per share data

 
2006

   
2005

 
 
 
(unaudited)

 
 
           

Net
sales

  $ 8,533     $ 8,739  

Net
loss

    (3,916 )     (4,287 )
 
               

Net
loss per share - basic

  $ (2.66 )   $ (2.92 )

Net
loss per share - assuming dilution

  $ (2.66 )   $ (2.92 )


 

The
unaudited pro forma net loss for  both periods presented includes $480
million for the amortization of purchased intangible assets, as well as the
following non-recurring charges: purchased research and development of $4.169
billion; $267 million associated with the step-up value of acquired inventory
sold; a tax charge for the drug-eluting stent license right obtained from
Abbott; and $95 million for the fair value adjustment related to the sharing of
proceeds feature of the Abbott stock purchase. In connection with the accounting
for the acquisition of Guidant, we wrote up inventory acquired from
manufacturing cost to fair value.




EXCERPTS ON THIS PAGE:

10-K (2 sections)
Feb 28, 2008

RELATED TOPICS for BSX:

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