Reconciliation of GAAP to Non-GAAP Financial Information
To supplement the consolidated financial results prepared in accordance with Generally Accepted Accounting Principles (“GAAP”), the Company uses non-GAAP financial measures that exclude certain items, such as in-process research and development expenses and special charges and gains. Management does not consider the excluded items part of day-to-day business or reflective of the core operational activities of the Company as they result from transactions outside the ordinary course of business. Management has also excluded the impact of implementing Financial Accounting Standards Board Statement No. 123(R) (“FAS 123(R)”) “Share Based Compensation” for
year-over-year comparison purposes.
     Management uses non-GAAP financial measures internally for strategic decision making, forecasting future results and evaluating current performance. By disclosing non-GAAP financial measures, management intends to provide investors with a more meaningful, consistent comparison of the Company’s core operating results and trends for the periods presented.
     Non-GAAP financial measures are not prepared in accordance with GAAP; therefore, the information is not necessarily comparable to other companies and should be considered as a supplement to, not a substitute for, nor superior to, the corresponding measures calculated in accordance with GAAP.

NON-GAAP NET INCOME 2002-2006	2006	2005	2004	2003	2002
Twelve months ended December 31, (in millions, except per share data)
GAAP Net Income	$ 130.5	$ 79.3	$ 1.7	$ 79.0	$ 55.7
Reconciling items:
Cost of Goods Sold - Discontinued Products	2.0	—	—	—	—
Purchased in-process research and    development expenses	—	1.2	93.3	13.6	—
Special charges (gains):
Settlements and litigations gains (losses), net	(20.2)	2.9	—	5.3	(14.8)
(Gain) loss on sale of assets, net	(13.7)	(14.1)	(7.4)	3.3	—
PVT milestone payment	10.0	—	—	—	—
Realignment expenses	9.4	3.9	—	13.0	—
Discontinued products	6.8	1.4	10.6	—	—
Restructure 3F Therapeutics agreements	2.0	22.8	—	—	—
Litigation reserves	1.2	—	—	—	—
Asset and investment impairments	—	16.3	9.0	—	67.4
Charitable fund contribution	—	15.0	5.0	—	—
Pension curtailment	—	—	—	1.9	—
Spin-off charges	—	—	—	—	3.3
Subtotal special charges (gains), net	(4.5)	48.2	17.2	23.5	55.9
Stock option expense under FAS 123R	19.3	—	—	—	—
Provision (benefit) for income taxes:
Tax effect on non-GAAP adjustments	6.6	(11.5)	(8.1)	(6.3)	(8.6)
Tax benefit from audit settlements and    reversal of valuation allowances	(6.9)	(8.0)	—	(13.2)	(20.1)
Repatriation taxes	—	15.8	—	—	—
Tax effect on stock option expenses under    FAS 123R	(5.5)	—	—	—	—
Subtotal income tax (benefit), net	(5.8)	(3.7)	(8.1)	(19.5)	(28.7)
Non-GAAP Net Income	$ 141.5	$ 125.0	$ 104.1	$ 96.6	$ 82.9
Non-GAAP earnings per share:
Basic non-GAAP earnings per share	$ 2.42	$ 2.10	$ 1.75	$ 1.63	$ 1.41
Diluted non-GAAP earnings per share	$ 2.27	$ 1.98	$ 1.67	$ 1.58	$ 1.35
Weighted average shares outstanding:
Basic	58.5	59.6	59.6	59.1	59.0
Dilluted	64.1	65.0	64.7	62.9	61.3
NON-GAAP FREE CASH FLOW 2002-2006	2006	2005	2004	2003	2002
Twelve months ended December 31, (in millions)
Net cash provided by operating activities	$ 230.8	$ 136.8	$ 180.6	$ 142.1	$ 150.5
Capital expenditures	(57.4)	(48.5)	(42.5)	(37.9)	(40.7)
Reconciling items:
Patent litigation settlement	(23.8)	—	—	—	—
Charitable fund contribution	—	15.0	—	—	—
Restructure 3F agreements	—	22.8	—	—	—
Implementation of accounts receivable    securitization program	—	—	—	—	(30.1)
Non-GAAP Free Cash Flow	$ 149.6	$ 126.1	$ 138.1	$ 104.2	$ 79.7