Bausch+Lomb Results Presentation Deck
Non-GAAP Appendix
Adjusted SG & A
Adjusted SG&A expenses (non-GAAP) represents selling, general and administrative
expenses ("SG&A expenses") (its most directly comparable GAAP financial measure),
adjusted to exclude separation-related costs, IPO-related costs and certain costs primarily
related to legal and other professional fees relating to legal and governmental
proceedings, investigations and information requests respecting certain of our distribution,
marketing, pricing, disclosure and accounting practices and separation-related and IPO-
related costs. See the discussion under "Other Non-GAAP charges" above. Management
uses Adjusted SG&A (non-GAAP), along with GAAP measures, as a supplemental
measure for period-to-period comparison to understand and evaluate each segment's
ability to control costs and direct additional cash investments in each business. The
Company believes that Adjusted SG&A (non-GAAP) is useful to investors as it provides
consistency and comparability with our past financial performance and facilitates period-
to-period comparisons of our SG&A expenses, and operations, as this measure
eliminates the effects of separation-related costs, IPO-related costs and legal and other
professional fees which given their nature and frequency, are outside the ordinary course
and relate to unique circumstances.
Adjusted Tax Rate
Adjusted Tax Rate (the most directly comparable financial measure for which is our
GAAP tax rate) includes the tax impact of the various non-GAAP adjustments used in
calculating our non-GAAP measures. However, due to the differences in the tax treatment
of items excluded from non-GAAP earnings, our adjusted tax rate will differ from our
GAAP tax rate and from our actual tax liabilities.
Adjusted Earnings Per Share (EPS)
Adjusted earnings per share or Adjusted EPS (non-GAAP) is calculated as Diluted
income per share attributable to Bausch + Lomb Corporation ("GAAP EPS") (its most
directly comparable GAAP financial measure), adjusted for the per diluted share impact of
each adjustment made to reconcile Net income to Adjusted net income (non-GAAP) as
discussed above. Like Adjusted net income (non-GAAP), Adjusted EPS (non-GAAP)
excludes the impact of certain items that may obscure trends in the Company's
underlying performance on a per share basis. By disclosing this non-GAAP measure, it is
management's intention to provide investors with a meaningful, supplemental comparison
of the Company's results and trends for the periods presented on a diluted share basis.
Accordingly, the Company believes that Adjusted EPS (non-GAAP) is useful to investors
in their assessment of the Company's operating performance, the valuation of the
Company and an investor's return on investment. It is also noted that, for the periods
presented, our GAAP EPS was significantly lower than our Adjusted EPS (non-GAAP).
Adjusted Cash Flows from Operations
Adjusted cash flows from operations (non-GAAP) is Cash flow from operations (its most
directly comparable GAAP financial measure) adjusted for: (i) payments of legacy legal
settlements, net of insurance proceeds, if any, and (ii) payments for separation costs, IPO
costs, separation-related costs, and IPO-related costs. Management believes that
Adjusted cash flows from operations (non-GAAP), along with the GAAP and non-GAAP
measures used by management, most appropriately reflect how the Company measures
the business internally. The Company uses adjusted cash flows from operations (non-
GAAP) both to assess the actual financial performance of the Company and to forecast
future results as part of its guidance. Management believes adjusted cash flows from
operations (non-GAAP) is a useful measure to evaluate current performance amounts. As
these payments arise from events outside of the ordinary course of continuing operations
as discussed above, the Company believes that the adjustments of these items provide
supplemental information with regard to the sustainability of the Company's cash from
operations, allow for a comparison of the financial results to historical operations and
forward-looking guidance and, as a result, provide useful supplemental information to
investors.
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