LAVAL, Quebec, Feb. 28, 2018 /PRNewswire/ --
- Fourth-Quarter 2017 Financial Results
-
- Revenues of $2.163
Billion
- GAAP Net Income of $513
Million
- GAAP Cash Flow from Operations of $578 Million
- Adjusted EBITDA (non-GAAP)1 of $875 Million
- Full-Year 2017 Financial Results
-
- Revenues of $8.724
Billion
- GAAP Net Income of $2.404
Billion
- GAAP Cash Flow from Operations of $2.290 Billion
- Adjusted EBITDA (non-GAAP) of $3.638
Billion
Valeant Pharmaceuticals International, Inc. (NYSE: VRX and TSX:
VRX) ("Valeant" or the "Company" or "we") today announced its
fourth-quarter and full-year 2017 financial results.
"2017 was a year of strong progress for Valeant as we delivered
organic growth2 across nearly 75 percent of the Company
while significantly reducing our debt and investing in our Bausch +
Lomb, Salix and Ortho Dermatologics businesses," said Joseph C. Papa, chairman and CEO, Valeant.
"Since the end of the first quarter of 2016, we've reduced our
total debt by more than 20 percent, and we will continue to address
our debt, as well as reduce expenses. Additionally, we're committed
to growth through strategic investment in our core businesses, key
products and late-stage pipeline. Altogether, these will get us to
the final phase of our strategic plan – the transformation of
Valeant," Mr. Papa continued.
Company Highlights
Executing on Core Businesses
- The Bausch + Lomb/International segment comprised approximately
56% of the Company's revenue in 2017
-
- Reported revenue decreased by 1% compared to 2016; excluding
foreign exchange and divestitures, revenue grew
organically2 by 6% compared to 2016
- Generated mid-single digit organic growth2 during
each of the four quarters of 2017
- The Salix business, which is reported within the Branded Rx
segment, comprised approximately 18% of the Company's revenue in
2017
-
- Reported revenue grew by 2% and revenue grew
organically2 by 5%, compared to 2016
- Generated mid-single digit or higher organic growth2
during the second, third and fourth quarters of 2017
- Continued to focus on stabilizing the dermatology business,
which is reported within the Branded Rx segment
-
- Recruited new leadership team and rebranded the business as
Ortho Dermatologics
- Increased dermatology sales force by more than 25% in
January 2018
Launching New Products and Advancing Pipeline
- Launched more than 100 new products globally in 2017
-
- Launched AQUALOX® contact lenses in Japan
- Introduced Biotrue® ONEday for Astigmatism daily disposable
contact lenses in 20 countries in Europe
- Received CE Mark from the European Commission for the Stellaris
Elite™ Vision Enhancement system, including Vitesse™
- Received approval from the U.S. Food and Drug Administration
(FDA) for and launched VYZULTA™, a treatment option for
glaucoma
- Received FDA approval for SILIQ™ and launched it as the
lowest-priced injectable biologic for moderate-to-severe plaque
psoriasis in the United States
based on total annual cost
- Received FDA approval for LUMIFY™, the only over-the-counter
eye drop with low-dose brimonidine for the treatment of eye
redness
- Obtained 510(k) clearances from the FDA for Thermage FLX™
System, Stellaris Elite™ Vision Enhancement System and
Vitesse™
- The FDA accepted New Drug Applications for:
-
- DUOBRII™3 (IDP-118), a topical treatment for plaque
psoriasis; PDUFA action date of June 18,
2018
- ALTRENO™3 (IDP-121), an acne treatment in lotion
form; PDUFA action date of Aug. 27,
2018
- JEMDEL™3 (IDP-122), a topical treatment for plaque
psoriasis; PDUFA action date of Oct. 5,
2018
Reducing Debt, Extending Maturities and Resolving Legacy
Issues
- As of Feb. 28, 2018, reduced
total debt by more than $6.7 billion
since the end of the first quarter of 2016
-
- Reduced total debt by more than $4.4
billion in 2017
- Exceeded $5 billion commitment to
pay down debt from divestiture proceeds and free cash flow earlier
than the previously stated timing of February 2018
- Reduced debt repayment requirements through 2020 by more than
$10.8 billion since Dec. 31, 2016; eliminated all long-term debt
maturities until 2020 and all mandatory amortization
requirements
- Completed 13 divestitures since the beginning of 2016,
including skin care brands (CeraVe®, AcneFree® and AMBI®), Dendreon
Pharmaceuticals, iNova Pharmaceuticals, Obagi Medical Products and
Sprout Pharmaceuticals
- Achieved dismissals or other positive outcomes in resolving and
managing litigation and investigations in more than 80 historical
matters since the beginning of 2017
-
- Agreed to resolve the Allergan securities litigation, subject
to court approval
- Agreed to resolve the SOLODYN® antitrust litigations in
February 2018, with the class
settlement ($58 million) being
subject to court approval
Fourth-Quarter and Full-Year Revenue Performance
Total
revenues were $2.163 billion for the
fourth quarter of 2017, as compared to $2.403 billion in the fourth quarter of 2016, a
decrease of $240 million, or 10%.
Total revenues were $8.724 billion
for the full year of 2017, as compared to $9.674 billion for the full year of 2016, a
decrease of $950 million, or 10%. The
decline was primarily driven by the impact of divestitures, and
lower volumes in the U.S. Diversified Products segment, attributed
to the previously reported loss of exclusivity for a basket of
products, and the Ortho Dermatologics business. Revenues were also
negatively affected by the unfavorable impact of foreign exchange.
The decline was partially offset by higher volumes in our Bausch +
Lomb/International segment, primarily the U.S. Consumer Products
business, and increased international pricing in our Bausch +
Lomb/International segment.
Revenues by segment were as follows:
Fourth-Quarter
2017
|
(in
millions)
|
|
4Q 2017
|
|
4Q 2016
|
|
Reported
Change
|
|
Reported
Change
|
|
Change at
Constant
Currency4
|
|
Organic2
Change
|
Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
Bausch +
Lomb/International
|
|
$1,226
|
|
$1,261
|
|
($35)
|
|
(3%)
|
|
|
(5%)
|
|
|
4%
|
|
Branded Rx
|
|
$602
|
|
$744
|
|
($142)
|
|
(19%)
|
|
|
(19%)
|
|
|
(8%)
|
|
U.S. Diversified
Products
|
|
$335
|
|
$398
|
|
($63)
|
|
(16%)
|
|
|
(16%)
|
|
|
(12%)
|
|
Total
Revenues
|
|
$2,163
|
|
$2,403
|
|
($240)
|
|
(10%)
|
|
|
(11%)
|
|
|
(2%)
|
|
Full-Year
2017
|
(in
millions)
|
|
FY 2017
|
|
FY 2016
|
|
Reported
Change
|
|
Reported
Change
|
|
Change at
Constant
Currency4
|
|
Organic2
Change
|
Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
Bausch +
Lomb/International
|
|
$4,871
|
|
$4,927
|
|
($56)
|
|
(1%)
|
|
|
0%
|
|
|
6%
|
|
Branded Rx
|
|
$2,475
|
|
$2,828
|
|
($353)
|
|
(12%)
|
|
|
(12%)
|
|
|
(6%)
|
|
U.S. Diversified
Products
|
|
$1,378
|
|
$1,919
|
|
($541)
|
|
(28%)
|
|
|
(28%)
|
|
|
(27%)
|
|
Total
Revenues
|
|
$8,724
|
|
$9,674
|
|
($950)
|
|
(10%)
|
|
|
(9%)
|
|
|
(4%)
|
|
Bausch + Lomb/International Segment
Bausch +
Lomb/International segment revenues were $1.226 billion for the fourth quarter of 2017, as
compared to $1.261 billion for the
fourth quarter of 2016, a decrease of $35
million, or 3%. Excluding the impact of divestitures and
foreign exchange, the Bausch + Lomb/International segment grew
organically2 by approximately 4% compared to the fourth
quarter of 2016.
Bausch + Lomb/International segment revenues were $4.871 billion for the full year of 2017, as
compared to $4.927 billion for the
full year of 2016, a decrease of $56
million, or 1%. Excluding the impact of divestitures of
$240 million, primarily the skin care
divestiture5, and foreign exchange, the Bausch +
Lomb/International segment grew organically2 by
approximately 6% compared to the full year of 2016, driven
primarily by our International Rx, Global Consumer and Global
Vision Care businesses.
Branded Rx Segment
Branded Rx segment revenues
were $602 million for the fourth
quarter of 2017, as compared to $744
million for the fourth quarter of 2016, a decrease of
$142 million, or 19%. The Salix
business grew revenue by 3% and generated organic
growth2 of 5% compared to the fourth quarter of
2016.
Branded Rx segment revenues were $2.475 billion for the full year of 2017, as
compared to $2.828 billion for the
full year of 2016, a decrease of $353
million, or 12%. The decrease primarily reflects lower
volumes in the Ortho Dermatologics business, and the impact of
divestitures of $194 million,
particularly from the divestiture of Dendreon Pharmaceuticals.
Compared to the full year of 2016, the Salix business grew revenue
by 2% and generated organic growth2 of 5%.
U.S. Diversified Products Segment
U.S. Diversified
Products segment revenues were $335 million for the fourth quarter of 2017, as
compared to $398 million for the
fourth quarter of 2016, a decrease of $63
million, or 16%.
U.S. Diversified Products segment revenues were
$1.378 billion for the full year of
2017, as compared to $1.919 billion
for the full year of 2016, a decrease of $541 million, or 28%. The decline was primarily
driven by decreases attributed to the previously reported loss of
exclusivity for a basket of products.
Operating Income/Loss
Operating loss was $322 million for the fourth quarter of 2017, as
compared to an operating income of $150
million for the fourth quarter of 2016, a decrease of
$472 million.
Operating income was $102 million
for the full year of 2017, as compared to an operating loss of
$566 million for the full year of
2016, an improvement of $668 million.
The improvement in our operating results for the full year of 2017
reflects gains from divestitures, lower operating expenses, the net
decrease in non-cash charges for impairments and net favorable
adjustments to acquisition-related contingent consideration. The
improvement was partially offset by lower revenues coming from
divestitures, the U.S. Diversified Products segment due to the loss
of exclusivity for a basket of products, and the Ortho
Dermatologics business.
Income Tax
In 2017 the Company recorded an income tax
benefit of $4.145 billion, which was
primarily attributed to an internal tax reorganization effort,
which began in the fourth quarter of 2016 and was completed in the
third quarter of 2017, and provisional benefits related to changes
under the Tax Cuts and Jobs Act of 2017.
Net Income
Net income for the fourth quarter of 2017
was $513 million, as compared to a
net loss of $515 million for the same
period in 2016, an increase of $1.028
billion.
Net income for the full year of 2017 was $2.404 billion, as compared to a net loss of
$2.409 billion for the full year of
2016, an improvement of $4.813
billion. The change in net income for the full year of 2017
is mainly attributed to an increase in the benefit from income
taxes, as described above.
Adjusted net income (non-GAAP) the fourth quarter of 2017 was
$347 million, as compared to
$443 million for the fourth quarter
of 2016, a decrease of $96 million.
Adjusted net income (non-GAAP) for the full year of 2017 was
$1.349 billion, as compared to
$1.916 billion for the full year of
2016, a decrease of $567 million.
Operating Cash
Cash provided by operating activities
was $578 million for the fourth
quarter of 2017. Cash provided by operating activities was
$2.290 billion for the full year of
2017, as compared to $2.087 billion
for the full year of 2016, an increase of $203 million, or 10%. The increase in 2017 was
primarily due to improvements in operating expenses and working
capital.
EPS
GAAP Earnings Per Share (EPS) Diluted for the
fourth quarter of 2017 was $1.45, as
compared to ($1.47) for the fourth
quarter of 2016. GAAP EPS Diluted for the full year of 2017 was
$6.83, as compared to ($6.94) for the full year of 2016.
Adjusted EBITDA (non-GAAP)
Adjusted EBITDA
(non-GAAP) was $875 million
for the fourth quarter of 2017, as compared to $1.047 billion for the fourth quarter of 2016, a
decrease of $172 million.
Adjusted EBITDA (non-GAAP) was $3.638 billion for the full year of 2017, as
compared to $4.305 billion for the
full year of 2016, a decrease of $667
million. The decline for the full year of 2017 was primarily
driven by lower revenues coming from divestitures, the U.S.
Diversified Products segment due to the loss of exclusivity for a
basket of products, and the Ortho Dermatologics business. The
decline was partially offset by organic growth2 in the
Bausch + Lomb/International segment and the Salix business, and
improved management of operating expenses.
2018 Financial Outlook
Valeant has provided guidance for the full year of 2018, as
follows:
- Full-Year Revenues in the range of $8.10 – $8.30
billion
- Full-Year Adjusted EBITDA (non-GAAP) in the range of
$3.05 – $3.20
billion
Other than with respect to GAAP Revenues, the Company only
provides guidance on a non-GAAP basis. The Company does not provide
a reconciliation of forward-looking Adjusted EBITDA (non-GAAP) to
GAAP net income (loss), due to the inherent difficulty in
forecasting and quantifying certain amounts that are necessary for
such reconciliation. In periods where significant acquisitions or
divestitures are not expected, the Company believes it might have a
basis for forecasting the GAAP equivalent for certain costs, such
as amortization, which would otherwise be treated as non-GAAP to
calculate projected GAAP net income (loss). However, because other
deductions (such as restructuring, gain or loss on extinguishment
of debt and litigation and other matters) used to calculate
projected net income (loss) vary dramatically based on actual
events, the Company is not able to forecast on a GAAP basis with
reasonable certainty all deductions needed in order to provide a
GAAP calculation of projected net income (loss) at this time. The
amount of these deductions may be material and, therefore, could
result in projected GAAP net income (loss) being materially less
than projected Adjusted EBITDA (non-GAAP).
Additional Highlights
- Valeant's cash, cash equivalents and restricted cash (including
non-current) were $797 million at
Dec. 31, 2017
- The Company's availability under the Revolving Credit Facility
was approximately $1.2 billion at
Dec. 31, 2017
- During the fourth quarter of 2017, Valeant's corporate credit
ratings were revised to stable by Moody's Investors Service and
remained unchanged by other ratings services
Conference Call Details
Date:
|
Wednesday, Feb. 28,
2018
|
Time:
|
8:00 a.m.
EST
|
Web cast:
|
http://ir.valeant.com/events-and-presentations
|
Participant Event
Dial-in:
|
(844) 428-3520 (North
America)
|
|
(409) 767-8386
(International)
|
Participant
Passcode:
|
5287247
|
Replay
Dial-in:
|
(855) 859-2056 (North
America)
|
|
(404) 537-3406
(International)
|
Replay
Passcode:
|
5287247 (replay
available until April 28, 2018)
|
About Valeant
Valeant Pharmaceuticals International,
Inc. (NYSE/TSX:VRX) is a multinational specialty pharmaceutical
company that develops, manufactures and markets a broad range of
pharmaceutical products primarily in the areas of dermatology,
gastrointestinal disorders, eye health, neurology and branded
generics. More information about Valeant can be found at
www.valeant.com.
Forward-looking Statements
This press release
contains forward-looking information and statements, within the
meaning of applicable securities laws (collectively,
"forward-looking statements"), including, but not limited to,
statements regarding Valeant's future prospects and performance
including the Company's 2018 full-year guidance, the anticipated
approval dates for certain of our products and the final approval
of the settlements of the Allergan securities litigation and
SOLODYN® antitrust litigation. Forward-looking statements may
generally be identified by the use of the words "anticipates,"
"expects," "intends," "plans," "should," "could," "would," "may,"
"will," "believes," "estimates," "potential," "target," or
"continue" and variations or similar expressions. These
forward-looking statements, including the Company's full-year
guidance, are based upon the current expectations and beliefs of
management and are provided for the purpose of providing additional
information about such expectations and beliefs and readers are
cautioned that these statements may not be appropriate for other
purposes. These forward-looking statements are subject to certain
risks and uncertainties that could cause actual results and events
to differ materially from those described in these forward-looking
statements. These risks and uncertainties include, but are not
limited to, the risks and uncertainties discussed in the Company's
most recent annual and quarterly reports and detailed from time to
time in the Company's other filings with the Securities and
Exchange Commission and the Canadian Securities Administrators,
which risks and uncertainties are incorporated herein by reference.
In addition, certain material factors and assumptions have been
applied in making these forward-looking statements (including the
Company's 2018 full-year guidance), including that the risks and
uncertainties outlined above will not cause actual results or
events to differ materially from those described in these
forward-looking statements, and additional information regarding
certain of these material factors and assumptions may also be found
in the Company's filings described above. The Company believes that
the material factors and assumptions reflected in these
forward-looking statements are reasonable, but readers are
cautioned not to place undue reliance on any of these
forward-looking statements. These forward-looking statements speak
only as of the date hereof. Valeant undertakes no obligation to
update any of these forward-looking statements to reflect events or
circumstances after the date of this press release or to reflect
actual outcomes, unless required by law.
Non-GAAP Information
Recent Evaluation of
Financial Performance Measures
Recently, the Company's
new management team undertook an evaluation of how it would measure
the financial performance of the Company going forward. As a result
of that evaluation, new management identified the following primary
financial performance measures for the Company: GAAP Revenues
(measure for both guidance and actual results), GAAP Net Income
(measure for actual results), Adjusted EBITDA (non-GAAP) (measure
for both guidance and actual results) and GAAP Cash Flow from
Operations (measure for actual results). These measures were
selected as the Company believes that these measures most
appropriately reflect how the Company measures the business
internally and sets operational goals and incentives.
Use of Non-GAAP Generally
To supplement the
financial measures prepared in accordance with U.S. generally
accepted accounting principles (GAAP), the Company uses certain
non-GAAP financial measures including (i) Adjusted EBITDA
(non-GAAP), (ii) organic growth and (iii) constant currency. As
discussed below, we also provide certain information about Adjusted
Net Income (non-GAAP) to provide supplemental information to
readers. Management uses these non-GAAP measures as key metrics in
the evaluation of company performance and the consolidated
financial results and, in part, in the determination of cash
bonuses for its executive officers. The Company believes these
non-GAAP measures are useful to investors in their assessment of
our operating performance and the valuation of our Company. In
addition, these non-GAAP measures address questions the Company
routinely receives from analysts and investors and, in order to
assure that all investors have access to similar data, the Company
has determined that it is appropriate to make this data available
to all investors.
However, these measures are not prepared in accordance with GAAP
nor do they have any standardized meaning under GAAP. In addition,
other companies may use similarly titled non-GAAP financial
measures that are calculated differently from the way we calculate
such measures. Accordingly, our non-GAAP financial measures may not
be comparable to similar non-GAAP measures. We caution investors
not to place undue reliance on such non-GAAP measures, but instead
to consider them with the most directly comparable GAAP measures.
Non-GAAP financial measures have limitations as analytical tools
and should not be considered in isolation. They should be
considered as a supplement to, not a substitute for, or superior
to, the corresponding measures calculated in accordance with
GAAP.
The reconciliations of these historic non-GAAP measures to the
most directly comparable financial measures calculated and
presented in accordance with GAAP are shown in the tables below.
However, as indicated above, for guidance purposes, the Company
does not provide reconciliations of projected Adjusted EBITDA
(non-GAAP) to projected GAAP net income (loss), due to the inherent
difficulty in forecasting and quantifying certain amounts that are
necessary for such reconciliations.
Specific Non-GAAP Measures
Adjusted EBITDA
(non-GAAP)
Adjusted EBITDA (non-GAAP) is GAAP net income (its most directly
comparable GAAP financial measure) adjusted for certain items, as
further described below. Management of the Company believes that
Adjusted EBITDA (non-GAAP), along with the GAAP measures used by
management, most appropriately reflect how the Company measures the
business internally and sets operational goals and incentives,
especially in light of the Company's new strategies. In particular,
the Company believes that Adjusted EBITDA (non-GAAP) focuses
management on the Company's underlying operational results and
business performance. As a result, the Company uses Adjusted EBITDA
(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 EBITDA (non-GAAP) is a useful measure
to evaluate current performance. Adjusted EBITDA (non-GAAP) is
intended to show our unleveraged, pre-tax operating results and
therefore reflects our financial performance based on operational
factors. In addition, commencing in 2017, cash bonuses for the
Company's executive officers and other key employees are based, in
part, on the achievement of certain Adjusted EBITDA (non-GAAP)
targets.
Adjusted EBITDA (non-GAAP) reflect adjustments based on the
following items:
- Restructuring and integration costs: Since 2016 and for the
foreseeable future, while the Company has undertaken fewer
acquisitions, the Company has incurred additional restructuring
costs as it implements its new strategies, which will involve,
among other things, improvements to our infrastructure and other
operational improvements, internal reorganizations and impacts from
the divestiture of assets and businesses. With regard to
infrastructure and operational improvements which the Company has
taken to improve efficiencies in the businesses and facilities,
these tend to be costs intended to right size the business or
organization that fluctuate significantly between periods in
amount, size and timing, depending on the improvement project,
reorganization or transaction. As a result, the Company does not
believe that such costs (and their impact) are truly representative
of the underlying business. The Company believes that the
adjustments of these items provide supplemental information with
regard to the sustainability of the Company's operating
performance, 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.
- Acquired in-process research and development costs: The Company
has excluded expenses associated with acquired in-process research
and development, as these amounts are inconsistent in amount and
frequency and are significantly impacted by the timing, size and
nature of acquisitions. Furthermore, as these amounts are
associated with research and development acquired, they are not a
representation of the Company's research and development efforts
during the period.
- Asset Impairments: The Company has excluded the impact of
impairments of finite-lived and indefinite-lived intangibles, as
well as impairments of assets held for sale, as such amounts are
inconsistent in amount and frequency and are significantly impacted
by the timing and/or size of acquisitions and divestitures. The
Company believes that the adjustments of these items correlate with
the sustainability of the Company's operating performance. Although
the Company excludes intangible impairments from its non-GAAP
expenses, the Company believes that it is important for investors
to understand that intangible assets contribute to revenue
generation.
- Share-based Compensation: The Company excludes the impact of
costs relating to share-based compensation. The Company believes
that the exclusion of share-based compensation expense assists
investors in the comparisons of operating results to peer
companies. Share-based compensation expense can vary significantly
based on the timing, size and nature of awards granted.
- Acquisition- related adjustments excluding amortization of
intangible assets and depreciation expense: The Company has
excluded the impact of acquisition-related contingent consideration
non-cash adjustments due to the inherent uncertainty and volatility
associated with such amounts based on changes in assumptions with
respect to fair value estimates, and the amount and frequency of
such adjustments is not consistent and is significantly impacted by
the timing and size of the Company's acquisitions, as well as the
nature of the agreed-upon consideration. In addition, the Company
has excluded the impact of fair value inventory step-up resulting
from acquisitions as the amount and frequency of such adjustments
are not consistent and are significantly impacted by the timing and
size of its acquisitions.
- Loss on extinguishment of debt: The Company has excluded loss
on extinguishment of debt as this represents a cost of refinancing
our existing debt and is not a reflection of our operations for the
period. Further, the amount and frequency of such charges are not
consistent and are significantly impacted by the timing and size of
debt financing transactions and other factors in the debt market
out of management's control.
- Other Non-GAAP Charges: The Company has excluded certain other
amounts, including integration related inventory and technology
transfer costs, CEO termination costs, legal and other professional
fees incurred in connection with recent legal and governmental
proceedings, investigations and information requests respecting
certain of our distribution, marketing, pricing, disclosure and
accounting practices, litigation and other matters, net (gain)/loss
on sale of assets, acquisition-related transaction costs and
certain costs associated with the wind-down of the arrangements
with Philidor Rx Services, LLC ("Philidor"). In addition, the
Company has excluded certain other expenses that are the result of
other, non-comparable events to measure operating performance.
These events arise outside of the ordinary course of continuing
operations. Given the unique nature of the matters relating to
these costs, the Company believes these items are not normal
operating expenses. For example, legal settlements and judgments
vary significantly, in their nature, size and frequency, and, due
to this volatility, the Company believes the costs associated with
legal settlements and judgments are not normal operating expenses.
In addition, as opposed to more ordinary course matters, the
Company considers that each of the recent proceedings,
investigations and information requests, given their nature and
frequency, are outside of the ordinary course and relate to unique
circumstances. The Company believes that the exclusion of such
out-of-the-ordinary-course amounts provides supplemental
information to assist in the comparison of the financial results of
the Company from period to period and, therefore, provides useful
supplemental information to investors. However, investors should
understand that many of these costs could recur and that companies
in our industry often face litigation.
Finally, to the extent not already adjusted for above, Adjusted
EBITDA (non-GAAP) reflects adjustments for interest, taxes,
depreciation and amortization (EBITDA represents earnings before
interest, taxes, depreciation and amortization).
Commencing in 2017, the Company assessed the methodology with
which it was calculating these non-GAAP measures and made updates
where it deemed appropriate to better reflect the underlying
business. As a result, commencing with the first-quarter actual
results of 2017, there are certain differences in the calculation
of Adjusted EBITDA (non-GAAP) between the current presentation and
the historic presentation. In particular, Adjusted EBITDA
(non-GAAP) no longer includes adjustments for foreign exchange
gain/loss arising from intercompany transactions. For the purposes
of the Company's actual results for the full year and fourth
quarter of 2016, the Company has calculated and presented Adjusted
EBITDA (non-GAAP) using the historic methodologies in place as of
the applicable historic dates; however, the Company has also
provided a reconciliation that calculates Adjusted EBITDA
(non-GAAP) using the new methodology, to allow investors and
readers to evaluate Adjusted EBITDA (non-GAAP) on the same basis
for the periods presented.
Adjusted Net Income (Loss) (non-GAAP)
Historically, management has used adjusted net income (loss)
(non-GAAP) (the most directly comparable GAAP financial measure for
which is GAAP net income (loss)) for strategic decision making,
forecasting future results and evaluating current performance. This
non-GAAP measure excludes the impact of certain items (as further
described below) that may obscure trends in the Company's
underlying performance. By disclosing this non-GAAP measure, it was
management's intention to provide investors with a meaningful,
supplemental comparison of the Company's operating results and
trends for the periods presented. It was management's belief that
this measure was also useful to investors as such measure allowed
investors to evaluate the Company's performance using the same
tools that management had used to evaluate past performance and
prospects for future performance. Accordingly, it was the Company's
belief that adjusted net income (loss) (non-GAAP) was useful to
investors in their assessment of the Company's operating
performance and the valuation of the Company. It is also noted
that, in recent periods, our GAAP net income was significantly
lower than our adjusted net income (non-GAAP). Commencing in 2017,
new management of the Company identified and began using certain
new primary financial performance measures to assess Company
financial performance. As a result, the Company no longer uses or
relies on adjusted net income (loss) (non-GAAP) in assessing the
financial performance of the Company. However, a reconciliation of
GAAP net income (loss) to adjusted net income (loss) (non-GAAP) is
presented in the tables below for the information of readers to
provide readers comparable information for prior periods.
In addition to certain of the adjustments described above
(namely restructuring and integration costs, acquired in-process
research and development costs, loss on extinguishment of debt,
asset impairments, acquisition-related adjustments, excluding
amortization, and other non-GAAP charges), adjusted net income
(non-GAAP) also reflects adjustments based on the following
additional items:
- Amortization of intangible assets: The Company has excluded the
impact of amortization of intangible assets, as such amounts are
inconsistent in amount and frequency and are significantly impacted
by the timing and/or size of acquisitions. The Company believes
that the adjustments of these items correlate with the
sustainability of the Company's operating performance. Although the
Company excludes amortization of intangible assets from its
non-GAAP expenses, the Company believes that it is important for
investors to understand that such intangible assets contribute to
revenue generation. Amortization of intangible assets that relate
to past acquisitions will recur in future periods until such
intangible assets have been fully amortized. Any future
acquisitions may result in the amortization of additional
intangible assets.
- Tax: The Company has included the tax impact of the non-GAAP
adjustments using an annualized effective tax rate of 13.2%.
As indicated above, commencing in 2017, the Company assessed the
methodology with which it was calculating these non-GAAP measures
and made updates where it deemed appropriate to better reflect the
underlying business. As a result, commencing with the first-quarter
results of 2017, there are certain differences in the calculation
of adjusted net income (loss) (non-GAAP) between the current
presentation and the historic presentation. In particular, adjusted
net income (loss) (non-GAAP) no longer includes foreign exchange
gain/loss arising from intercompany transactions and amortization
of deferred financing costs and debt discounts. In addition, as of
the third quarter of 2016, adjusted net income (loss) (non-GAAP) no
longer includes adjustments for the following items: Depreciation
resulting from a PP&E step-up resulting from acquisitions and
previously accelerated vesting of certain share-based equity
adjustments. For the purposes of the Company's actual results for
the full year and fourth quarter of 2016, the Company has
calculated and presented adjusted net income (loss) (non-GAAP)
using the historic methodologies in place as of the applicable
historic dates; however, the Company has also provided a
reconciliation that calculates adjusted net income (loss)
(non-GAAP) using the new methodology, to allow investors and
readers to evaluate as adjusted net income (loss) on the same basis
for the periods presented.
Organic Growth
Organic Growth, a non-GAAP metric, is defined as an increase on a
period-over-period basis in revenues on a constant currency basis
(if applicable) excluding the impact of recent acquisitions,
divestitures and discontinuations.
Organic Growth is growth in GAAP Revenue (its most directly
comparable GAAP financial measure) adjusted for certain items, as
further described below, of businesses that have been owned for one
or more years. The Company uses organic revenue and organic growth
to assess performance of its business units and operating and
reportable segments, and the Company in total, without the impact
of foreign currency exchange fluctuations and recent acquisitions,
divestitures and product discontinuations. The Company believes
that such measures are useful to investors as it provides a
supplemental period-to-period comparison.
Organic revenue growth reflects adjustments for: (i) the impact
of period-over-period changes in foreign currency exchange rates on
revenues and (ii) the revenues associated with acquisitions,
divestitures and discontinuations of businesses divested and/ or
discontinued. These adjustments are determined as follows:
- Foreign currency exchange rates: Although changes in foreign
currency exchange rates are part of our business, they are not
within management's control. Changes in foreign currency exchange
rates, however, can mask positive or negative trends in the
business. The impact for changes in foreign currency exchange rates
is determined as the difference in the current period reported
revenues at their current period currency exchange rates and the
current period reported revenues revalued using the monthly average
currency exchange rates during the comparable prior period.
- Acquisitions, divestitures and discontinuations: In order to
present period-over-period organic revenues (non-GAAP) on a
comparable basis, revenues associated with acquisitions,
divestitures and discontinuations are adjusted to include only
revenues from those businesses and assets owned during both
periods. Accordingly, organic revenue (non-GAAP) growth excludes
from the current period, revenues attributable to each acquisition
for twelve months subsequent to the day of acquisition, as there
are no revenues from those businesses and assets included in the
comparable prior period. Organic revenue (non-GAAP) growth excludes
from the prior period (but not the current period), all revenues
attributable to each divestiture and discontinuance during the
twelve months prior to the day of divestiture or discontinuance, as
there are no revenues from those businesses and assets included in
the comparable current period.
Constant Currency
Changes in the relative values of non-U.S. currencies to the U.S.
dollar may affect the Company's financial results and financial
position. To assist investors in evaluating the Company's
performance, we have adjusted for foreign currency effects.
Constant currency impact is determined by comparing 2017 reported
amounts adjusted to exclude currency impact, calculated using 2016
monthly average exchange rates, to the actual 2016 reported
amounts.
Please also see the reconciliation tables below for further
information as to how these non-GAAP measures are calculated for
the periods presented.
1
|
Please see the tables
at the end of this news release for a reconciliation of this and
other non-GAAP measures to the nearest comparable GAAP
measure.
|
2
|
Organic growth, a
non-GAAP metric, is defined as an increase on a period-over-period
basis in revenues on a constant currency basis (if applicable)
excluding the impact of recent acquisitions, divestitures and
discontinuations.
|
3
|
Provisional name
|
4
|
To assist investors
in evaluating the Company's performance, we have adjusted for
changes in foreign currency exchange rates. Change at constant
currency, a non-GAAP metric, is determined by comparing 2017
reported amounts adjusted to exclude currency impact, calculated
using 2016 monthly average exchange rates, to the actual 2016
reported amounts.
|
5
|
In March 2017,
Valeant sold the CeraVe®, AcneFree® and AMBI® brands, which had
been reported within the Bausch + Lomb/International segment, as
part of the skin care divestiture to L'Oréal.
|
FINANCIAL TABLES FOLLOW
Valeant
Pharmaceuticals International, Inc.
|
|
|
|
|
|
|
|
Table
1
|
Condensed
Consolidated Statements of Operations
|
|
|
|
|
|
|
|
|
For the Three and
Twelve Months Ended December 31, 2017 and 2016
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
December
31,
|
|
December
31,
|
(in
millions)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Product
sales
|
|
$
|
2,133
|
|
|
$
|
2,368
|
|
|
$
|
8,595
|
|
|
$
|
9,536
|
|
Other
revenues
|
|
30
|
|
|
35
|
|
|
129
|
|
|
138
|
|
Total
revenues
|
|
2,163
|
|
|
2,403
|
|
|
8,724
|
|
|
9,674
|
|
Cost of goods sold
(exclusive of amortization and impairments of
intangible assets)
|
|
637
|
|
|
655
|
|
|
2,506
|
|
|
2,572
|
|
Cost of other
revenues
|
|
10
|
|
|
10
|
|
|
42
|
|
|
39
|
|
Selling, general and
administrative
|
|
639
|
|
|
665
|
|
|
2,582
|
|
|
2,810
|
|
Research and
development
|
|
90
|
|
|
93
|
|
|
361
|
|
|
421
|
|
Amortization of
intangible assets
|
|
775
|
|
|
658
|
|
|
2,690
|
|
|
2,673
|
|
Goodwill
impairments
|
|
—
|
|
|
28
|
|
|
312
|
|
|
1,077
|
|
Asset
impairments
|
|
85
|
|
|
28
|
|
|
714
|
|
|
422
|
|
Restructuring and
integration costs
|
|
10
|
|
|
54
|
|
|
52
|
|
|
132
|
|
Acquired in-process
research and development costs
|
|
—
|
|
|
—
|
|
|
5
|
|
|
34
|
|
Acquisition-related
contingent consideration
|
|
8
|
|
|
(31)
|
|
|
(289)
|
|
|
(13)
|
|
Other expense
(income), net
|
|
231
|
|
|
93
|
|
|
(353)
|
|
|
73
|
|
|
|
2,485
|
|
|
2,253
|
|
|
8,622
|
|
|
10,240
|
|
Operating (loss)
income
|
|
(322)
|
|
|
150
|
|
|
102
|
|
|
(566)
|
|
Interest
income
|
|
3
|
|
|
2
|
|
|
12
|
|
|
8
|
|
Interest
expense
|
|
(448)
|
|
|
(467)
|
|
|
(1,840)
|
|
|
(1,836)
|
|
Loss on
extinguishment of debt
|
|
(57)
|
|
|
—
|
|
|
(122)
|
|
|
—
|
|
Foreign exchange and
other
|
|
20
|
|
|
(45)
|
|
|
107
|
|
|
(41)
|
|
Loss before (benefit
from) provision for income taxes
|
|
(804)
|
|
|
(360)
|
|
|
(1,741)
|
|
|
(2,435)
|
|
(Benefit from)
provision for income taxes
|
|
(1,316)
|
|
|
152
|
|
|
(4,145)
|
|
|
(27)
|
|
Net income
(loss)
|
|
512
|
|
|
(512)
|
|
|
2,404
|
|
|
(2,408)
|
|
Less: Net (loss)
income attributable to noncontrolling interest
|
|
(1)
|
|
|
3
|
|
|
—
|
|
|
1
|
|
Net income (loss)
attributable to Valeant Pharmaceuticals International,
Inc.
|
|
$
|
513
|
|
|
$
|
(515)
|
|
|
$
|
2,404
|
|
|
$
|
(2,409)
|
|
Valeant
Pharmaceuticals International, Inc.
|
|
|
|
|
|
|
|
Table
2
|
Reconciliation of
GAAP Net Income (Loss) to Adjusted Net Income
(non-GAAP)
|
|
|
|
|
|
|
For the Three and
Twelve Months Ended December 31, 2017 and 2016
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
December
31,
|
|
December
31,
|
(in
millions)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net income (loss)
attributable to Valeant Pharmaceuticals
International, Inc.
|
$
|
513
|
|
|
$
|
(515)
|
|
|
$
|
2,404
|
|
|
$
|
(2,409)
|
|
Non-GAAP adjustments:
(a)
|
|
|
|
|
|
|
|
|
Acquisition-related
adjustments excluding amortization of intangible assets
(b)(d)
|
|
8
|
|
|
(31)
|
|
|
(289)
|
|
|
33
|
|
Amortization of
intangible assets
|
|
775
|
|
|
658
|
|
|
2,690
|
|
|
2,673
|
|
Restructuring and
integration costs
|
|
10
|
|
|
54
|
|
|
52
|
|
|
132
|
|
Acquired in-process
research and development costs
|
|
—
|
|
|
—
|
|
|
5
|
|
|
34
|
|
Goodwill
impairments
|
|
—
|
|
|
28
|
|
|
312
|
|
|
1,077
|
|
Asset
impairments
|
|
85
|
|
|
28
|
|
|
714
|
|
|
422
|
|
Other non-GAAP
adjustments (c)(d)
|
|
237
|
|
|
100
|
|
|
(310)
|
|
|
208
|
|
Amortization of
deferred financing costs and debt discounts
(d)
|
|
—
|
|
|
29
|
|
|
—
|
|
|
118
|
|
Loss on
extinguishment of debt
|
|
57
|
|
|
—
|
|
|
122
|
|
|
—
|
|
Foreign exchange and
other (d)
|
|
—
|
|
|
28
|
|
|
—
|
|
|
14
|
|
Tax effect of
non-GAAP adjustments
|
|
(1,338)
|
|
|
64
|
|
|
(4,351)
|
|
|
(386)
|
|
Total non-GAAP
adjustments
|
|
(166)
|
|
|
958
|
|
|
(1,055)
|
|
|
4,325
|
|
Adjusted net
income attributable to Valeant Pharmaceuticals
International, Inc.
(non-GAAP) (as reported) (d)
|
|
347
|
|
|
443
|
|
|
1,349
|
|
|
1,916
|
|
Depreciation
resulting from a PP&E step-up resulting from
acquisitions
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8)
|
|
Previously
accelerated vesting of certain share-based equity
adjustments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(23)
|
|
Foreign exchange loss
on intercompany transactions
|
|
—
|
|
|
(28)
|
|
|
—
|
|
|
(14)
|
|
Amortization of
deferred financing costs and debt discounts
|
|
—
|
|
|
(29)
|
|
|
—
|
|
|
(118)
|
|
Adjusted net
income attributable to Valeant Pharmaceuticals
International, Inc. (non-GAAP) (as revised)
(e)
|
|
$
|
347
|
|
|
$
|
386
|
|
|
$
|
1,349
|
|
|
$
|
1,753
|
|
(a)
|
The components of
(and further details respecting) each of these non-GAAP adjustments
and the financial statement line item to which each component
relates can be found on Table 2a.
|
(b)
|
Due to the nature of
Acquisition-related adjustments excluding amortization of
intangible assets, the components of this non-GAAP adjustment are
reflected in the following financial statement line items: Cost of
goods sold, Selling, general and administrative, Research and
development and Acquisition-related contingent
consideration.
|
(c)
|
Due to the nature of
Other non-GAAP adjustments, the components of this non-GAAP
adjustment are reflected in the following financial statement line
items: Product sales, Cost of goods sold, Selling, general and
administrative, Research and development and Other expense
(income), net.
|
(d)
|
Adjusted net income
(non-GAAP) for the three and twelve months ended December 31, 2017
was determined using the methodology for calculating Adjusted net
income (non-GAAP) as of December 31, 2017.
|
(e)
|
As of the third
quarter of 2016, Adjusted net income (non-GAAP) no longer includes
adjustments for the following items: Depreciation resulting from a
PP&E step-up resulting from acquisitions and Previously
accelerated vesting of certain share-based equity instruments.
Depreciation resulting from a PP&E step-up resulting from
acquisitions was a component of Acquisition-related adjustments
excluding amortization of intangible assets. Previously accelerated
vesting of certain share-based equity instruments was a component
of Other non-GAAP adjustments. As of the first quarter of 2017,
Adjusted net income (non-GAAP) also no longer includes adjustments
for Foreign exchange loss/gain on intercompany transactions and
Amortization of deferred financing costs and debt discounts. For
the purpose of allowing investors to evaluate Adjusted net income
(non-GAAP) on the same basis for the periods presented, these
adjustments have been removed from the results for the three and
twelve months ended December 31, 2016.
|
Valeant
Pharmaceuticals International, Inc.
|
|
|
|
|
|
Table
2a
|
Reconciliation of
GAAP to Non-GAAP Financial Information
|
|
|
|
|
|
|
|
|
For the Three and
Twelve Months Ended December 31, 2017 and 2016
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
December
31,
|
|
December
31,
|
(in
millions)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Total revenues
reconciliation:
|
|
|
|
|
|
|
|
|
GAAP Total
revenues
|
|
$
|
2,163
|
|
|
$
|
2,403
|
|
|
$
|
8,724
|
|
|
$
|
9,674
|
|
Philidor Rx Services,
LLC sales through deconsolidation as of January 31, 2016
(a)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2)
|
|
Adjusted total
revenues (non-GAAP)
|
|
$
|
2,163
|
|
|
$
|
2,403
|
|
|
$
|
8,724
|
|
|
$
|
9,672
|
|
Cost of goods sold
and Cost of other revenues reconciliation:
|
|
|
|
|
|
|
|
|
GAAP Cost of goods
sold and Cost of other revenues
|
|
$
|
647
|
|
|
$
|
665
|
|
|
$
|
2,548
|
|
|
$
|
2,611
|
|
% of GAAP
Total revenues
|
|
30
|
%
|
|
28
|
%
|
|
29
|
%
|
|
27
|
%
|
Fair value inventory
step-up resulting from acquisitions (b)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(38)
|
|
Depreciation
resulting from a PP&E step-up resulting from acquisitions
(b)(j)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6)
|
|
Integration related
inventory and technology transfer costs (a)
|
|
—
|
|
|
1
|
|
|
—
|
|
|
(9)
|
|
Other cost of goods
sold (a)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1)
|
|
Adjusted cost of
goods sold and cost of other revenues (non-GAAP)
(j)
|
|
$
|
647
|
|
|
$
|
666
|
|
|
$
|
2,548
|
|
|
$
|
2,557
|
|
% of
Non-GAAP total revenues
|
|
30
|
%
|
|
28
|
%
|
|
29
|
%
|
|
26
|
%
|
Selling, general
and administrative reconciliation:
|
|
|
|
|
|
|
|
|
GAAP Selling, general
and administrative
|
|
$
|
639
|
|
|
$
|
665
|
|
|
$
|
2,582
|
|
|
$
|
2,810
|
|
% of GAAP
Total revenues
|
|
30
|
%
|
|
28
|
%
|
|
30
|
%
|
|
29
|
%
|
Depreciation
resulting from a PP&E step-up resulting from acquisitions
(b)(j)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1)
|
|
CEO termination costs
(a)(j)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(35)
|
|
Legal and other
professional fees (a)(k)
|
|
(7)
|
|
|
(7)
|
|
|
(44)
|
|
|
(65)
|
|
Accelerated
depreciation due to fixed assets write-offs acquired from Salix
Pharmaceuticals, Inc. (a)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7)
|
|
Philidor Rx Services,
LLC expenses through deconsolidation
as of
January 31, 2016 (a)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5)
|
|
Previously
accelerated vesting of certain share-based equity instruments
(a)(j)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
Other Selling,
general and administrative (a)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1)
|
|
Adjusted selling,
general and administrative (non-GAAP) (j)
|
|
$
|
632
|
|
|
$
|
658
|
|
|
$
|
2,538
|
|
|
$
|
2,698
|
|
% of
Non-GAAP total revenues
|
|
29
|
%
|
|
27
|
%
|
|
29
|
%
|
|
28
|
%
|
Research and
development reconciliation:
|
|
|
|
|
|
|
|
|
GAAP Research and
development
|
|
$
|
90
|
|
|
$
|
93
|
|
|
$
|
361
|
|
|
$
|
421
|
|
% of GAAP
Total revenues
|
|
4
|
%
|
|
4
|
%
|
|
4
|
%
|
|
4
|
%
|
Depreciation
resulting from a PP&E step-up resulting from acquisitions
(b)(j)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1)
|
|
Settlement of certain
disputed invoices related to transition services
(a)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(16)
|
|
Adjusted research and
development (non-GAAP)
|
|
$
|
90
|
|
|
$
|
93
|
|
|
$
|
361
|
|
|
$
|
404
|
|
% of
Non-GAAP total revenues
|
|
4
|
%
|
|
4
|
%
|
|
4
|
%
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 2a
(continued)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
December
31,
|
|
December
31,
|
(in
millions)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Amortization of
intangible assets reconciliation:
|
|
|
|
|
|
|
|
|
GAAP Amortization of
intangible assets
|
|
$
|
775
|
|
|
$
|
658
|
|
|
$
|
2,690
|
|
|
$
|
2,673
|
|
Amortization of
intangible assets (c)
|
|
(775)
|
|
|
(658)
|
|
|
(2,690)
|
|
|
(2,673)
|
|
Adjusted amortization
of intangible assets (non-GAAP)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Goodwill
impairment reconciliation:
|
|
|
|
|
|
|
|
|
GAAP Goodwill
impairment
|
|
$
|
—
|
|
|
$
|
28
|
|
|
$
|
312
|
|
|
$
|
1,077
|
|
Goodwill
impairment
|
|
—
|
|
|
(28)
|
|
|
(312)
|
|
|
(1,077)
|
|
Adjusted goodwill
impairment (non-GAAP)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Restructuring and
integration costs reconciliation:
|
|
|
|
|
|
|
|
|
GAAP Restructuring
and integration costs
|
|
$
|
10
|
|
|
$
|
54
|
|
|
$
|
52
|
|
|
$
|
132
|
|
Restructuring and
integration costs (d)
|
|
(10)
|
|
|
(54)
|
|
|
(52)
|
|
|
(132)
|
|
Adjusted
restructuring and integration costs (non-GAAP)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Acquired
in-process research and development costs
reconciliation:
|
|
|
|
|
|
|
|
|
GAAP Acquired
in-process research and development costs
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5
|
|
|
$
|
34
|
|
Acquired in-process
research and development costs (e)
|
|
—
|
|
|
—
|
|
|
(5)
|
|
|
(34)
|
|
Adjusted acquired
in-process research and development costs (non-GAAP)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Asset impairments
reconciliation:
|
|
|
|
|
|
|
|
|
GAAP Asset
impairments
|
|
$
|
85
|
|
|
$
|
28
|
|
|
$
|
714
|
|
|
$
|
422
|
|
Asset
impairments
|
|
(85)
|
|
|
(28)
|
|
|
(714)
|
|
|
(422)
|
|
Adjusted asset
impairments (non-GAAP)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Acquisition-related contingent consideration
reconciliation:
|
|
|
|
|
|
|
|
|
GAAP
Acquisition-related contingent consideration
|
|
$
|
8
|
|
|
$
|
(31)
|
|
|
$
|
(289)
|
|
|
$
|
(13)
|
|
Acquisition-related
contingent consideration (b)
|
|
(8)
|
|
|
31
|
|
|
289
|
|
|
13
|
|
Adjusted
acquisition-related contingent consideration (non-GAAP)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Other expense
(income), net reconciliation:
|
|
|
|
|
|
|
|
|
GAAP Other expense
(income), net
|
|
$
|
231
|
|
|
$
|
93
|
|
|
$
|
(353)
|
|
|
$
|
73
|
|
Litigation and other
matters (a)
|
|
(116)
|
|
|
(91)
|
|
|
(227)
|
|
|
(59)
|
|
Net (loss)/gain on
sale of assets (a)
|
|
(115)
|
|
|
(2)
|
|
|
580
|
|
|
7
|
|
Acquisition related
transaction costs (a)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2)
|
|
Deconsolidation of
Philidor (a)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(19)
|
|
Adjusted other
expense (income) (non-GAAP)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest expense
reconciliation:
|
|
|
|
|
|
|
|
|
GAAP Interest
expense
|
|
$
|
(448)
|
|
|
$
|
(467)
|
|
|
$
|
(1,840)
|
|
|
$
|
(1,836)
|
|
Amortization of debt
discounts (f)(j)
|
|
—
|
|
|
24
|
|
|
—
|
|
|
99
|
|
Amortization of
deferred financing costs (f)(j)
|
|
—
|
|
|
4
|
|
|
—
|
|
|
15
|
|
Write-down of
deferred financing costs (f)(j)
|
|
—
|
|
|
1
|
|
|
—
|
|
|
4
|
|
Adjusted interest
expense (non-GAAP)
|
|
$
|
(448)
|
|
|
$
|
(438)
|
|
|
$
|
(1,840)
|
|
|
$
|
(1,718)
|
|
Loss on
extinguishment of debt reconciliation:
|
|
|
|
|
|
|
|
|
GAAP Loss on
extinguishment of debt
|
|
$
|
(57)
|
|
|
$
|
—
|
|
|
$
|
(122)
|
|
|
$
|
—
|
|
Loss on
extinguishment of debt (g)
|
|
57
|
|
|
—
|
|
|
122
|
|
|
—
|
|
Adjusted loss on
extinguishment of debt (non-GAAP)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 2a
(continued)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
December
31,
|
|
December
31,
|
(in
millions)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Foreign exchange
and other reconciliation:
|
|
|
|
|
|
|
|
|
GAAP Foreign exchange
and other
|
|
$
|
20
|
|
|
$
|
(45)
|
|
|
$
|
107
|
|
|
$
|
(41)
|
|
Foreign exchange loss
on intercompany transactions (h)(j)
|
|
—
|
|
|
28
|
|
|
—
|
|
|
14
|
|
Other
(h)
|
|
(1)
|
|
|
—
|
|
|
(1)
|
|
|
—
|
|
Adjusted foreign
exchange and other (non-GAAP)
|
|
$
|
19
|
|
|
$
|
(17)
|
|
|
$
|
106
|
|
|
$
|
(27)
|
|
(Benefit from)
provision for income taxes reconciliation:
|
|
|
|
|
|
|
|
|
GAAP (Benefit from)
provision for income taxes
|
|
$
|
(1,316)
|
|
|
$
|
152
|
|
|
$
|
(4,145)
|
|
|
$
|
(27)
|
|
Tax effect of
non-GAAP adjustments (i)
|
|
1,338
|
|
|
(64)
|
|
|
4,351
|
|
|
386
|
|
Adjusted provision
for income taxes (non-GAAP)
|
|
$
|
22
|
|
|
$
|
88
|
|
|
$
|
206
|
|
|
$
|
359
|
|
(a)
|
Represents a
component of the non-GAAP adjustment of "Other non-GAAP
adjustments" (see Table 2). The identified components, in the
aggregate, represent all components of this non-GAAP
adjustment.
|
(b)
|
Represents a
component of the non-GAAP adjustment of "Acquisition-related
adjustments excluding amortization of intangible assets" (see Table
2). The identified components, in the aggregate, represent all
components of this non-GAAP adjustment.
|
(c)
|
Represents the sole
component of the non-GAAP adjustment of "Amortization of intangible
assets" (see Table 2).
|
(d)
|
Represents the sole
component of the non-GAAP adjustment of "Restructuring and
integration costs" (see Table 2).
|
(e)
|
Represents the sole
component of the non-GAAP adjustment of "Acquired in-process
research and development costs" (see Table 2).
|
(f)
|
Represents a
component of the non-GAAP adjustment of "Amortization of deferred
financing costs and debt discounts" (see Table 2). The identified
components, in the aggregate, represent all components of this
non-GAAP adjustment.
|
(g)
|
Represents the sole
component of the non-GAAP adjustment of "Loss on extinguishment of
debt" (see Table 2).
|
(h)
|
Represents a
component of the non-GAAP adjustment of "Foreign exchange and
other" (see Table 2). The identified components, in the aggregate,
represent all components of this non-GAAP adjustment.
|
(i)
|
Represents the sole
component of the non-GAAP adjustment of "Tax effect of non-GAAP
adjustments" (see Table 2).
|
(j)
|
As of the third
quarter of 2016, Adjusted net income (loss) (non-GAAP) no longer
includes adjustments for the following items: Depreciation
resulting from a PP&E step-up resulting from acquisitions and
Previously accelerated vesting of certain share-based equity
adjustments. Depreciation resulting from a PP&E step-up
resulting from acquisitions was a component of Acquisition-related
adjustments excluding amortization of intangible assets. Previously
accelerated vesting of certain share-based equity adjustments was a
component of Other non-GAAP adjustments. As of the first quarter of
2017, Adjusted net income (non-GAAP) also no longer includes
adjustments for Foreign exchange loss/gain on intercompany
transactions and Amortization of deferred financing costs and debt
discounts. For the purpose of allowing investors to evaluate
Adjusted net income (non-GAAP) on the same basis for all periods
presented, these adjustments have been removed from the results for
the three and twelve months ended December 31, 2016. See
reconciliation on Table 2.
|
(k)
|
Legal and other
professional fees incurred in connection with recent legal and
governmental proceedings, investigations and information requests
related to, among other matters, our distribution, marketing,
pricing, disclosure and accounting practices for the three and
twelve months ended December 31, 2017 and 2016.
|
Valeant
Pharmaceuticals International, Inc.
|
|
|
|
|
|
Table
2b
|
Reconciliation of
GAAP Net Income (Loss) to Adjusted EBITDA (non-GAAP)
|
|
|
|
|
|
|
For the Three and
Twelve Months Ended December 31, 2017 and 2016
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
December
31,
|
|
December
31,
|
(in
millions)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net income (loss)
attributable to Valeant Pharmaceuticals
International, Inc.
|
|
$
|
513
|
|
|
$
|
(515)
|
|
|
$
|
2,404
|
|
|
$
|
(2,409)
|
|
|
Interest expense,
net
|
|
445
|
|
|
465
|
|
|
1,828
|
|
|
1,828
|
|
|
(Benefit from)
provision for income taxes
|
|
(1,316)
|
|
|
152
|
|
|
(4,145)
|
|
|
(27)
|
|
|
Depreciation and
amortization
|
|
819
|
|
|
707
|
|
|
2,858
|
|
|
2,866
|
|
EBITDA
|
|
461
|
|
|
809
|
|
|
2,945
|
|
|
2,258
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Restructuring and
integration costs
|
|
10
|
|
|
54
|
|
|
52
|
|
|
132
|
|
|
Acquired in-process
research and development costs
|
|
—
|
|
|
—
|
|
|
5
|
|
|
34
|
|
|
Goodwill
impairments
|
|
—
|
|
|
28
|
|
|
312
|
|
|
1,077
|
|
|
Asset
impairments
|
|
85
|
|
|
28
|
|
|
714
|
|
|
422
|
|
|
Share-based
compensation
|
|
17
|
|
|
31
|
|
|
87
|
|
|
165
|
|
|
Acquisition-related
adjustments excluding amortization of
intangible
assets, net of depreciation expense (d)
|
|
8
|
|
|
(31)
|
|
|
(289)
|
|
|
25
|
|
|
Loss on
extinguishment of debt
|
|
57
|
|
|
—
|
|
|
122
|
|
|
—
|
|
|
Foreign exchange and
other
|
|
—
|
|
|
28
|
|
|
—
|
|
|
14
|
|
|
Other adjustments
(a)
|
|
237
|
|
|
100
|
|
|
(310)
|
|
|
178
|
|
Adjusted EBITDA
(non-GAAP) (as reported) (e)
|
|
875
|
|
|
1,047
|
|
|
3,638
|
|
|
4,305
|
|
|
Foreign exchange loss
on intercompany transactions
|
|
—
|
|
|
(28)
|
|
|
—
|
|
|
(14)
|
|
Adjusted EBITDA
(non-GAAP) (as revised) (f)
|
|
$
|
875
|
|
|
$
|
1,019
|
|
|
$
|
3,638
|
|
|
$
|
4,291
|
|
|
|
|
|
|
|
|
|
|
|
(a) Other adjustments
include:
|
|
$
|
237
|
|
|
$
|
100
|
|
|
$
|
(310)
|
|
|
$
|
178
|
|
|
Integration related
inventory and technology transfer costs
|
|
—
|
|
|
(1)
|
|
|
—
|
|
|
9
|
|
|
CEO termination costs
(cash severance payment)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
Legal and other
professional fees (b)
|
|
7
|
|
|
8
|
|
|
44
|
|
|
65
|
|
|
Settlement of certain
disputed invoices related to transition services
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|
Litigation and other
matters
|
|
116
|
|
|
91
|
|
|
227
|
|
|
59
|
|
|
Net loss/(gain) on
sale of assets (c)
|
|
115
|
|
|
2
|
|
|
(580)
|
|
|
(7)
|
|
|
Acquisition related
transaction costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
Philidor Rx Services,
LLC net loss through deconsolidation as of January 31,
2016
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
Other
|
|
(1)
|
|
|
—
|
|
|
(1)
|
|
|
21
|
|
(b)
|
Legal and other
professional fees incurred in connection with recent legal and
governmental proceedings, investigations and information requests
related to, among other matters, our distribution, marketing,
pricing, disclosure and accounting practices.
|
(c)
|
For the twelve months
ended December 31, 2017, Net loss/(gain) on sale of assets includes
the $309 million gain on the iNova sale in September of 2017, the
$97 million gain on the sale of Dendreon Pharmaceuticals in June of
2017 and the $309 million gain on the sale of CeraVe, AcneFree, and
AMBI skin care brands in March of 2017, offset by the $98 million
loss on the sale of Sprout Pharmaceuticals in December of
2017.
|
(d)
|
Adjustment to
Acquisition-related adjustments excluding amortization of
intangible assets, net of depreciation expense, includes a fair
vale adjustment of $312 million reflecting a decrease in forecasted
sales for a specific product line which impacted the expected
future royalty payments for the three and twelve months ended
December 31, 2017.
|
(e)
|
Adjusted EBITDA
(non-GAAP) reported by the Company for the three and twelve months
ended December 31, 2017 as determined using the methodology for
calculating Adjusted EBITDA (non-GAAP) as of December 31, 2017.
Adjusted EBITDA (non-GAAP) reported by the Company for the three
and twelve months ended December 31, 2016 as determined using the
methodology for calculating Adjusted EBITDA (non-GAAP) as of
December 31, 2016.
|
(f)
|
As of the first
quarter of 2017, non-GAAP adjustments no longer include adjustments
for Foreign exchange gain/loss on intercompany transactions. For
the purpose of allowing investors to evaluate Adjusted EBITDA
(non-GAAP) on the same basis for all periods presented, this
adjustment has been removed from the results for the three and
twelve months ended December 31, 2016.
|
Valeant
Pharmaceuticals International, Inc.
|
|
|
|
|
|
Table
3
|
Organic Growth
(non-GAAP) - by Segment
|
|
|
|
|
|
|
For the Three and
Twelve Months Ended December 31, 2017 and 2016
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
(1)
|
|
(2)
|
|
(3)
|
|
(4)
|
|
(5)
|
|
(6)
|
|
(7)
|
|
2017
Revenue
|
|
2016
Revenue
|
|
Currency
Impact
(a)
|
|
2017 Revenues
Excluding
Currency Impact (b)
|
|
Impact
of
Divestitures
and
Discontinuations
|
|
Organic
Growth
(4-(2-
6))/(2-6)
(c)
|
(in
millions)
|
|
|
|
Amount
|
|
Percent
Change
|
|
|
Bausch+Lomb/International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global Vision
Care
|
$
|
187
|
|
|
$
|
178
|
|
|
$
|
3
|
|
|
$
|
184
|
|
|
3%
|
|
|
$
|
2
|
|
|
5%
|
Global Surgical
(d)
|
187
|
|
|
177
|
|
|
7
|
|
|
180
|
|
|
2%
|
|
|
—
|
|
|
2%
|
Global Consumer
Products
|
377
|
|
|
397
|
|
|
12
|
|
|
365
|
|
|
(8%)
|
|
|
63
|
|
|
9%
|
Global Ophtho
Rx
|
164
|
|
|
159
|
|
|
3
|
|
|
161
|
|
|
1%
|
|
|
—
|
|
|
1%
|
International Rx
(d)
|
311
|
|
|
350
|
|
|
7
|
|
|
304
|
|
|
(13%)
|
|
|
51
|
|
|
2%
|
Total
Bausch+Lomb/International
|
1,226
|
|
|
1,261
|
|
|
32
|
|
|
1,194
|
|
|
(5%)
|
|
|
116
|
|
|
4%
|
Branded
Rx
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salix
|
425
|
|
|
413
|
|
|
—
|
|
|
425
|
|
|
3%
|
|
|
10
|
|
|
5%
|
Ortho
Dermatologics
|
136
|
|
|
214
|
|
|
—
|
|
|
136
|
|
|
(36%)
|
|
|
—
|
|
|
(36%)
|
Dendreon
|
—
|
|
|
77
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
77
|
|
|
—
|
Dentistry
|
39
|
|
|
39
|
|
|
—
|
|
|
39
|
|
|
0%
|
|
|
1
|
|
|
3%
|
Other
revenues
|
2
|
|
|
1
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
Total Branded
Rx
|
602
|
|
|
744
|
|
|
—
|
|
|
602
|
|
|
(19%)
|
|
|
88
|
|
|
(8%)
|
U.S. Diversified
Products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Neuro &
Other
|
228
|
|
|
276
|
|
|
—
|
|
|
228
|
|
|
(17%)
|
|
|
—
|
|
|
(17%)
|
Generics
|
94
|
|
|
93
|
|
|
—
|
|
|
94
|
|
|
1%
|
|
|
—
|
|
|
1%
|
U.S. Solta
|
11
|
|
|
9
|
|
|
—
|
|
|
11
|
|
|
22%
|
|
|
—
|
|
|
22%
|
U.S. Obagi
|
2
|
|
|
17
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
14
|
|
|
—
|
Other
revenues
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
Total U.S.
Diversified Products
|
335
|
|
|
398
|
|
|
—
|
|
|
335
|
|
|
(16%)
|
|
|
17
|
|
|
(12%)
|
Total
revenues
|
$
|
2,163
|
|
|
$
|
2,403
|
|
|
$
|
32
|
|
|
$
|
2,131
|
|
|
(11%)
|
|
|
$
|
221
|
|
|
(2%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 3
(continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended December 31,
|
|
(1)
|
|
(2)
|
|
(3)
|
|
(4)
|
|
(5)
|
|
(6)
|
|
(7)
|
|
2017
Revenue
|
|
2016
Revenue
|
|
Currency
Impact
(a)
|
|
2017 Revenues
Excluding
Currency Impact (b)
|
|
Impact
of
Divestitures
and
Discontinuations
|
|
Organic
Growth
(4-(2-
6))/(2-6)
(c)
|
(in
millions)
|
|
|
|
Amount
|
|
Percent
Change
|
|
|
Bausch+Lomb/International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global Vision
Care
|
$
|
752
|
|
|
$
|
743
|
|
|
$
|
(2)
|
|
|
$
|
754
|
|
|
1%
|
|
|
$
|
12
|
|
|
3%
|
Global
Surgical (d)
|
677
|
|
|
672
|
|
|
3
|
|
|
674
|
|
|
0%
|
|
|
1
|
|
|
0%
|
Global Consumer
Products
|
1,523
|
|
|
1,577
|
|
|
21
|
|
|
1,502
|
|
|
(5%)
|
|
|
156
|
|
|
6%
|
Global Ophtho
Rx
|
623
|
|
|
624
|
|
|
—
|
|
|
623
|
|
|
0%
|
|
|
—
|
|
|
0%
|
International
Rx (d)
|
1,296
|
|
|
1,311
|
|
|
(100)
|
|
|
1,396
|
|
|
6%
|
|
|
71
|
|
|
13%
|
Total
Bausch+Lomb/International
|
4,871
|
|
|
4,927
|
|
|
(78)
|
|
|
4,949
|
|
|
0%
|
|
|
240
|
|
|
6%
|
Branded
Rx
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salix
|
1,566
|
|
|
1,530
|
|
|
—
|
|
|
1,566
|
|
|
2%
|
|
|
32
|
|
|
5%
|
Ortho
Dermatologics
|
606
|
|
|
840
|
|
|
—
|
|
|
606
|
|
|
(28%)
|
|
|
—
|
|
|
(28%)
|
Dendreon
|
164
|
|
|
303
|
|
|
—
|
|
|
164
|
|
|
—
|
|
|
159
|
|
|
—
|
Dentistry
|
134
|
|
|
152
|
|
|
—
|
|
|
134
|
|
|
(12%)
|
|
|
3
|
|
|
(10%)
|
Other
revenues
|
5
|
|
|
3
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
Total Branded
Rx
|
2,475
|
|
|
2,828
|
|
|
—
|
|
|
2,475
|
|
|
(12%)
|
|
|
194
|
|
|
(6%)
|
U.S. Diversified
Products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Neuro &
Other
|
946
|
|
|
1,364
|
|
|
—
|
|
|
946
|
|
|
(31%)
|
|
|
—
|
|
|
(31%)
|
Generics
|
343
|
|
|
455
|
|
|
—
|
|
|
343
|
|
|
(25%)
|
|
|
—
|
|
|
(25%)
|
U.S. Solta
|
35
|
|
|
29
|
|
|
—
|
|
|
35
|
|
|
21%
|
|
|
—
|
|
|
21%
|
U.S. Obagi
|
51
|
|
|
57
|
|
|
—
|
|
|
51
|
|
|
(11%)
|
|
|
14
|
|
|
19%
|
Other
revenues
|
3
|
|
|
14
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
11
|
|
|
—
|
Total U.S.
Diversified Products
|
1,378
|
|
|
1,919
|
|
|
—
|
|
|
1,378
|
|
|
(28%)
|
|
|
25
|
|
|
(27%)
|
Total
revenues
|
$
|
8,724
|
|
|
$
|
9,674
|
|
|
$
|
(78)
|
|
|
$
|
8,802
|
|
|
(9%)
|
|
|
$
|
459
|
|
|
(4%)
|
(a)
|
The impact for
changes in foreign currency exchange rates is determined as the
difference in the current period reported revenues at their current
period currency exchange rates and the current period reported
revenues revalued using the monthly average currency exchange rates
during the comparable prior period.
|
(b)
|
To supplement the
financial measures prepared in accordance with U.S. generally
accepted accounting principles (GAAP), the Company uses certain
non-GAAP financial measures. For additional information about the
Company's use of such non-GAAP financial measures, refer to the
body of the press release to which these tables are
attached.
|
(c)
|
Organic Growth
provides growth rates for businesses that have been owned for one
year or more and is calculated as follows:
((Current Year Sales – Currency Impact)-(Prior Year Sales –
Divestitures and Discontinuations))/( Prior Year Sales –
Divestitures and Discontinuations)
|
(d)
|
As of the third
quarter of 2017, one product has been removed from the Global
surgical business unit and added to the International business
unit. This change has been made as management believes that the
product better aligns with the International business unit, as this
product, although acquired as part of the acquisition of certain
surgical assets, is an injectable product. For the purposes of
allowing investors to evaluate the results of these two business
units on the same basis for all periods presented, this change has
been made for the results of the three and twelve months ended
December 31, 2016.
|
Valeant
Pharmaceuticals International, Inc.
|
|
|
|
Table
4
|
Consolidated
Balance Sheet and Other Financial Information
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
|
December 31,
2017
|
|
December 31,
2016
|
Cash
Balances
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
720
|
|
|
$
|
542
|
|
Restricted
cash
|
|
77
|
|
|
—
|
|
Cash, cash
equivalents and restricted cash
|
|
$
|
797
|
|
|
$
|
542
|
|
|
|
|
|
|
Debt
Balances
|
|
|
|
|
Revolving Credit
Facility
|
|
$
|
250
|
|
|
$
|
875
|
|
Series A-3 Tranche A
Term Loan Facility
|
|
—
|
|
|
1,016
|
|
Series A-4 Tranche A
Term Loan Facility
|
|
—
|
|
|
658
|
|
Series D-2 Tranche B
Term Loan Facility
|
|
—
|
|
|
1,048
|
|
Series C-2 Tranche B
Term Loan Facility
|
|
—
|
|
|
805
|
|
Series E-1 Tranche B
Term Loan Facility
|
|
—
|
|
|
2,429
|
|
Series F Tranche B
Term Loan Facility
|
|
3,420
|
|
|
3,815
|
|
Senior
Notes
|
|
21,759
|
|
|
19,188
|
|
Other
|
|
15
|
|
|
12
|
|
Total long-term debt,
net of unamortized discounts and issuance costs
|
|
25,444
|
|
|
29,846
|
|
Plus: Unamortized
discounts and issuance costs
|
|
308
|
|
|
323
|
|
Maturities of
debt
|
|
$
|
25,752
|
|
|
$
|
30,169
|
|
|
|
|
|
|
Maturities of
Debt
|
|
|
|
2018
|
|
$
|
209
|
|
|
$
|
3,738
|
|
2019
|
|
—
|
|
|
2,122
|
|
2020
|
|
2,690
|
|
|
7,723
|
|
2021
|
|
3,175
|
|
|
3,215
|
|
2022
|
|
5,115
|
|
|
4,281
|
|
Thereafter
|
|
14,563
|
|
|
9,090
|
|
Maturities of
debt
|
|
$
|
25,752
|
|
|
$
|
30,169
|
|
|
|
|
Table 4
(continued)
|
|
|
|
|
|
|
(in
millions)
|
|
2017
|
|
2016
|
Cash provided by
operating activities - Three months ended December
31
|
|
$
|
578
|
|
|
$
|
512
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and
integration costs - Three months ended December 31,
2017
|
|
|
|
|
|
|
Cash
Paid
|
|
Expense
|
By project
type:
|
|
|
|
|
Restructuring
initiatives
|
|
$
|
10
|
|
|
$
|
8
|
|
Salix
Pharmaceuticals, Ltd.
|
|
—
|
|
|
1
|
|
Other
|
|
3
|
|
|
2
|
|
Total
|
|
$
|
13
|
|
|
$
|
11
|
|
|
|
|
|
|
|
By expense
type:
|
|
|
|
|
Consulting,
duplicative labor, transition services, and other
|
|
$
|
4
|
|
|
$
|
—
|
|
Severance
|
|
6
|
|
|
8
|
|
Facility
closures
|
|
3
|
|
|
3
|
|
Total
|
|
$
|
13
|
|
|
$
|
11
|
|
|
|
|
|
|
|
|
|
|
|
Investor
Contact:
|
Media
Contact:
|
Arthur
Shannon
|
Lainie
Keller
|
arthur.shannon@valeant.com
|
lainie.keller@valeant.com
|
(514)
856-3855
|
(908)
927-0617
|
(877) 281-6642 (toll
free)
|
|
View original
content:http://www.prnewswire.com/news-releases/valeant-announces-fourth-quarter-and-full-year-2017-results-and-provides-2018-guidance-300605517.html
SOURCE Valeant Pharmaceuticals International, Inc.