Yes o
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No x
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Exhibit
99.1
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Description
Press release dated October 24, 2013 titled:
“Elan Reports Third Quarter 2013 Financial Results”
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ELAN CORPORATION, PLC
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|||
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By:
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/s/ William F. Daniel | |
Name: William F. Daniel | |||
Title: Executive Vice President and Company Secretary | |||
Investor Relations:
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Media Relations:
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Chris Burns
Ph: + 1-800-252-3526
David Marshall
Ph: 353-1-709-4444
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Emer Reynolds
Ph: + 353-1-709-4022
Jonathan Birt
Ph: +44-786-036-1746
Jamie Tully
Ph: +1-212-687-8080
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Unaudited Consolidated U.S. GAAP Income Statement Data
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||||||||
Three Months Ended September 30
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Nine Months Ended September 30
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|||||||
2012
US$m
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2013
US$m
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2012
US$m
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2013
US$m
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|||||
Continuing Operations
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||||||||
—
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48.6
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Revenue (see page 7)
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—
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105.1
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||||
—
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—
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Cost of goods sold
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0.2
|
—
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||||
—
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48.6
|
Gross margin
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(0.2)
|
105.1
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||||
Operating Expenses (see page 7)
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||||||||
24.0
|
24.1
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Selling, general and administrative
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86.8
|
79.3
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||||
23.0
|
17.4
|
Research and development
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73.5
|
59.0
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||||
107.7
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11.4
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Other net charges (see page 9)
|
109.6
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127.6
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||||
154.7
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52.9
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Total operating expenses
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269.9
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265.9
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||||
(154.7)
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(4.3)
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Operating loss
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(270.1)
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(160.8)
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||||
Net Interest and Investment Gains and Losses (see page 9)
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||||||||
15.0
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(1.5)
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Net interest (income)/expense
|
44.2
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12.1
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||||
—
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—
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Net charge on debt retirements
|
—
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140.2
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||||
145.8
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10.1
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Net loss on equity method investments
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196.0
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39.3
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||||
—
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0.2
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Net investment losses
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—
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0.2
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||||
160.8
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8.8
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Net interest and investment gains and losses
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240.2
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191.8
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||||
(315.5)
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(13.1)
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Net loss from continuing operations before tax
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(510.3)
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(352.6)
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||||
(16.2)
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0.7
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Provision for/(benefit from) income taxes
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(46.3)
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(14.2)
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||||
(299.3)
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(13.8)
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Net loss from continuing operations
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(464.0)
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(338.4)
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||||
Discontinued Operations
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||||||||
69.4
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—
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Net income from discontinued operations, net of tax (see page 11)
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173.8
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2,676.6
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||||
(229.9)
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(13.8)
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Net income/(loss)
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(290.2)
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2,338.2
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||||
(0.51)
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(0.03)
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Basic and diluted net loss per ordinary share - continuing operations
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(0.78)
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(0.62)
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||||
0.12
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—
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Basic and diluted net income per ordinary share – discontinued operations
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0.29
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4.89
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||||
(0.39)
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(0.03)
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Basic and diluted net income/(loss) per ordinary share – total operations
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(0.49)
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4.27
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||||
592.9
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512.4
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Basic and diluted weighted average number of ordinary shares outstanding (in millions) – continuing and discontinued operations
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591.8
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547.9
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Unaudited Non-GAAP Financial Information – Adjusted EBITDA
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||||||||
Three Months Ended
September 30
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Non-GAAP Financial Information
Reconciliation Schedule
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Nine Months Ended
September 30
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||||||
2012
US$m
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2013
US$m
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2012
US$m
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2013
US$m
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|||||
(229.9)
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(13.8)
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Net income/(loss)
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(290.2)
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2,338.2
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||||
Net income/(loss) from discontinued operations:
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||||||||
(82.0)
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—
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Net income from Tysabri
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(220.8)
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(2,633.9)
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||||
12.6
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—
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Net loss from Prothena
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26.7
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0.5
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||||
—
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—
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Net (income)/loss from EDT/Alkermes
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20.3
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(43.2)
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||||
(299.3)
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(13.8)
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Net loss from continuing operations
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(464.0)
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(338.4)
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||||
15.0
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(1.5)
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Net interest (income)/expense
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44.2
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12.1
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||||
(16.2)
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0.7
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Provision for/(benefit from) income taxes
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(46.3)
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(14.2)
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||||
2.9
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0.9
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Depreciation and amortization
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9.4
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3.1
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||||
(0.2)
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(0.1)
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Amortized fees
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(0.3)
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(0.2)
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||||
(297.8)
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(13.8)
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EBITDA from continuing operations
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(457.0)
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(337.6)
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||||
5.7
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4.2
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Share-based compensation
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24.8
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16.5
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||||
107.7
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11.4
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Other net charges
|
109.6
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127.6
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||||
145.8
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10.1
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Net loss on equity method investments
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196.0
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39.3
|
||||
—
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0.2
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Net investment losses
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—
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0.2
|
||||
—
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—
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Net charge on debt retirements
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—
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140.2
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||||
(38.6)
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12.1
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Adjusted EBITDA from continuing operations(1)
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(126.6)
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(13.8)
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December 31
2012
US$m
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September 30
2013
US$m
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||||
Assets
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|||||
Current Assets
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|||||
Cash and cash equivalents
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431.3
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1,873.3
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|||
Restricted cash and cash equivalents — current
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2.6
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3.0
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|||
Investment securities — current
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167.9
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65.5
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|||
Held for sale assets
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220.1
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—
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Deferred tax assets — current
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380.9
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1.0
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|||
Other current assets
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206.7
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75.4
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|||
Total current assets
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1,409.5
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2,018.2
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Non-Current Assets
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|||||
Intangible assets, net
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99.0
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97.6
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|||
Property, plant and equipment, net
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12.7
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8.0
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|||
Equity method investments
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14.0
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59.4
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Investment securities — non-current
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8.6
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9.1
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|||
Deferred tax assets — non-current
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64.6
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8.9
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|||
Restricted cash and cash equivalents — non-current
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13.7
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0.9
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|||
Other assets
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18.1
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25.8
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|||
Total Assets
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1,640.2
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2,227.9
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|||
Liabilities and Shareholders’ Equity
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|||||
Accounts payable, accrued and other liabilities
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422.0
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141.5
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|||
Long-term debt
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600.0
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—
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|||
Shareholders’ equity
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618.2
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2,086.4
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|||
Total Liabilities and Shareholders’ Equity
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1,640.2
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2,227.9
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Three Months
ended September 30, 2013
US$m
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Nine Months ended September 30,
2013
US$m
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|||
2,050.1
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Opening shareholders’ equity
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618.2
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||
(13.8)
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Net income for the period
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2,338.2
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||
4.2
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Share-based compensation
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17.4
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||
12.3
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Issuance of share capital
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41.6
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||
—
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Unrealized movement on defined benefit pension plan
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24.8
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||
23.9
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Increase in net unrealized gain on investment securities
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24.6
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||
(0.2)
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Share repurchase and associated costs
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(1,016.6)
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9.9
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Excess tax benefits from share based compensation
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38.2
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||
2,086.4
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Closing shareholders’ equity
|
2,086.4
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Unaudited Consolidated U.S. GAAP Cash Flow Data
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||||||||
Three Months Ended
September 30
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Nine Months Ended
September 30
|
|||||||
2012
US$m
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2013
US$m
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2012
US$m
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2013
US$m
|
|||||
(38.6)
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12.1
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Adjusted EBITDA from continuing operations
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(126.6)
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(13.8)
|
||||
99.8
|
—
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Adjusted EBITDA from discontinued operations(1)
|
269.4
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116.9
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||||
(15.6)
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(9.8)
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Net interest and tax(2)
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(44.1)
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(61.8)
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||||
(41.6)
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(11.3)
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Other net charges(3)
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(43.1)
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(166.6)
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||||
11.9
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(54.8)
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Working capital decrease/(increase)
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(26.6)
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(104.2)
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||||
15.9
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(63.8)
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Cash flows provided by/(used in) operating activities
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29.0
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(229.5)
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||||
(3.8)
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(0.2)
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Net purchases of tangible and intangible assets
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(9.8)
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(0.9)
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||||
(0.1)
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(0.1)
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Purchase of investments
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(0.5)
|
(0.4)
|
||||
—
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—
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Funding provided to equity method investment (Janssen AI)
|
(48.7)
|
(55.7)
|
||||
Net proceeds from sale of Alkermes plc shares
|
381.1
|
169.7
|
||||||
—
|
—
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Proceeds from sale of Tysabri business
|
—
|
3,249.5
|
||||
—
|
—
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Purchase of equity method investment (Newbridge)
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—
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(40.0)
|
||||
—
|
—
|
Receipt of deferred consideration (Prialt)
|
7.0
|
—
|
||||
8.2
|
18.7
|
Cash provided by/(used in) financing activities(2)(4)
|
16.8
|
(1,663.1)
|
||||
—
|
0.4
|
Restricted cash and cash equivalents movement
|
—
|
|
12.4
|
|||
20.2
|
(45.0)
|
Net cash movement
|
374.9
|
1,442.0
|
||||
626.4
|
1,918.3
|
Beginning cash balance
|
271.7
|
431.3
|
||||
646.6
|
1,873.3
|
Cash and cash equivalents at end of period
|
646.6
|
1,873.3
|
Three Months Ended
September 30
|
Nine months Ended
September 30
|
||||||||||||||
2012
US$m
|
2013
US$m
|
2012
US$m
|
2013
US$m
|
||||||||||||
— | 10.6 |
Transaction and other costs
|
— | 90.4 | |||||||||||
31.6 | 0.8 |
Severance, restructuring and other costs
|
33.0 | 6.2 | |||||||||||
— | — |
University of Cambridge donation
|
— | 21.4 | |||||||||||
— | — |
Intarcia investment
|
— | 12.5 | |||||||||||
65.1 | — |
Facilities and other asset impairment charges
|
65.6 | 1.0 | |||||||||||
— | — |
Defined benefit pension plan gain
|
— | (3.9 | ) | ||||||||||
11.0 | — |
In-process research and development
|
11.0 | — | |||||||||||
107.7 | 11.4 |
Total
|
109.6 | 127.6 |
Three Months Ended
September 30
|
Nine Months Ended
September 30
|
||||||||||||||
2012
US$m
|
2013
US$m
|
2012
US$m
|
2013
US$m
|
||||||||||||
27.7 | 7.6 |
Janssen AI
|
76.0 | 32.7 | |||||||||||
117.3 | — |
Impairment of Janssen AI
|
117.3 | — | |||||||||||
— | 1.7 |
Newbridge
|
— | 4.1 | |||||||||||
0.8 | 0.8 |
Proteostasis
|
2.7 | 2.5 | |||||||||||
145.8 | 10.1 |
Total
|
196.0 | 39.3 |
Three Months Ended
September 30
|
Nine months Ended
September 30
|
||||||||||||||
2012
US$m
|
2013
US$m
|
2012
US$m
|
2013
US$m
|
||||||||||||
82.0 | — |
Tysabri
|
220.8 | 2,633.9 | |||||||||||
(12.6 | ) | — |
Prothena
|
(26.7 | ) | (0.5 | ) | ||||||||
— | — |
EDT
|
(20.3 | ) | 43.2 | ||||||||||
69.4 | — |
Total
|
173.8 | 2,676.6 |
Tysabri
|
Prothena
|
EDT
|
Total
|
|||||||||||||
US$m
|
US$m
|
US$m
|
US$m
|
|||||||||||||
Revenue
|
306.4 | — | — | 306.4 | ||||||||||||
Cost of goods sold
|
166.5 | — | — | 166.5 | ||||||||||||
Gross margin
|
139.9 | — | — | 139.9 | ||||||||||||
Operating Expenses
|
||||||||||||||||
Selling, general and administrative
|
23.8 | 0.3 | — | 24.1 | ||||||||||||
Research and development
|
14.0 | 6.7 | — | 20.7 | ||||||||||||
Net (gain)/loss on divestment of business
|
— | 6.7 | — | 6.7 | ||||||||||||
Other net gains
|
3.6 | — | — | 3.6 | ||||||||||||
Total operating expenses
|
41.4 | 13.7 | — | 55.1 | ||||||||||||
Operating income/(loss)
|
98.5 | (13.7 | ) | — | 84.8 | |||||||||||
Net interest and investment gains
|
— | — | — | — | ||||||||||||
Net income/(loss) before tax
|
98.5 | (13.7 | ) | — | 84.8 | |||||||||||
Provision for/(benefit from) income taxes
|
16.5 | (1.1 | ) | — | 15.4 | |||||||||||
Net income/(loss)
|
82.0 | (12.6 | ) | — | 69.4 | |||||||||||
Net income/(loss)
|
82.0 | (12.6 | ) | — | 69.4 | |||||||||||
Net interest and investment gains and losses
|
— | — | — | — | ||||||||||||
Net (gain)/loss on divestment of business
|
— | 6.7 | — | 6.7 | ||||||||||||
Provision for/(benefit from) income taxes
|
16.5 | (1.1 | ) | — | 15.4 | |||||||||||
Depreciation and amortization
|
3.2 | — | — | 3.2 | ||||||||||||
Share-based compensation
|
0.9 | 0.6 | — | 1.5 | ||||||||||||
Other net gains
|
3.6 | — | — | 3.6 | ||||||||||||
Adjusted EBITDA
|
106.2 | (6.4 | ) | — | 99.8 |
1
|
There were no gains, losses, income or charges related to the Tysabri, Prothena or EDT/Alkermes operations for the three months ended September 30, 2013.
|
Nine months Ended
September 30, 2012
|
Nine Months Ended
September 30, 2013
|
||||||||||||||||||||||||||||||||
Tysabri
|
Prothena
|
EDT
|
Total
|
Tysabri
|
Prothena
|
EDT | Total |
|
|||||||||||||||||||||||||
US$m
|
US$m
|
US$m
|
US$m
|
US$m
|
US$m
|
US$m | US$m |
|
|||||||||||||||||||||||||
883.0 | — | — | 883.0 |
Revenue
|
344.0 | — | — | 344.0 | |||||||||||||||||||||||||
481.8 | — | — | 481.8 |
Cost of goods sold
|
186.8 | — | — | 186.8 | |||||||||||||||||||||||||
401.2 | — | — | 401.2 |
Gross margin
|
157.2 | — | — | 157.2 | |||||||||||||||||||||||||
Operating Expenses
|
|||||||||||||||||||||||||||||||||
81.1 | 1.1 | — | 82.2 |
Selling, general and administrative
|
25.5 | — | — | 25.5 | |||||||||||||||||||||||||
46.0 | 22.4 | — | 68.4 |
Research and development
|
15.4 | — | — | 15.4 | |||||||||||||||||||||||||
— | 6.7 | — | 6.7 |
Net (gain)/loss on divestment of business
|
(3,021.6 | ) | 0.5 | — | (3,021.1 | ) | |||||||||||||||||||||||
3.6 | — | — | 3.6 |
Other net charges
|
3.7 | — | — | 3.7 | |||||||||||||||||||||||||
130.7 | 30.2 | — | 160.9 |
Total operating expenses
|
(2,977.0 | ) | 0.5 | — | (2,976.5 | ) | |||||||||||||||||||||||
270.5 | (30.2 | ) | — | 240.3 |
Operating income/(loss)
|
3,134.2 | (0.5 | ) | — | 3,133.7 | |||||||||||||||||||||||
— | — | 20.3 | 20.3 |
Net interest and investment (gains)/losses
|
— | — | (43.2 | ) | (43.2 | ) | |||||||||||||||||||||||
270.5 | (30.2 | ) | (20.3 | ) | 220.0 |
Net income/(loss) before tax
|
3,134.2 | (0.5 | ) | 43.2 | 3,176.9 | ||||||||||||||||||||||
49.7 | (3.5 | ) | — | 46.2 |
Provision for/(benefit from) income taxes
|
500.3 | — | — | 500.3 | ||||||||||||||||||||||||
220.8 | (26.7 | ) | (20.3 | ) | 173.8 |
Net income/(loss)
|
2,633.9 | (0.5 | ) | 43.2 | 2,676.6 | ||||||||||||||||||||||
Adjusted EBITDA Reconciliation Schedule
|
|||||||||||||||||||||||||||||||||
220.8 | (26.7 | ) | (20.3 | ) | 173.8 |
Net income/(loss)
|
2,633.9 | (0.5 | ) | 43.2 | 2,676.6 | ||||||||||||||||||||||
— | — | 20.3 | 20.3 |
Net interest and investment (gains)losses
|
— | — | (43.2 | ) | (43.2 | ) | |||||||||||||||||||||||
— | 6.7 | — | 6.7 |
Net (gain)/loss on divestment of business
|
(3,021.6 | ) | 0.5 | — | (3,021.1 | ) | |||||||||||||||||||||||
49.7 | (3.5 | ) | — | 46.2 |
Provision for/(benefit from) income taxes
|
500.3 | — | — | 500.3 | ||||||||||||||||||||||||
9.6 | 0.5 | — | 10.1 |
Depreciation and amortization
|
0.1 | — | — | 0.1 | |||||||||||||||||||||||||
2.9 | 5.8 | — | 8.7 |
Share-based compensation
|
0.5 | — | — | 0.5 | |||||||||||||||||||||||||
3.6 | — | — | 3.6 |
Other net charges
|
3.7 | — | — | 3.7 | |||||||||||||||||||||||||
286.6 | (17.2 | ) | — | 269.4 |
Adjusted EBITDA
|
116.9 | — | — | 116.9 |