SUMMARY QUARTERLY INFORMATION (UNAUDITED) (Tables)

12 Months Ended

Dec. 31, 2015

Quarterly Financial Information Disclosure [Abstract]

Schedule of Quarterly Financial Information



	2015
	Q1 (Restated)	Q2		Q2 Six Months Ending (Restated)	Q3	Q3 Nine Months Ending (Restated)	Q4
($ in millions, except per share data)	$	$		$	$	$	$
Revenue	2,170.1	2,732.4		4,902.5	2,786.8	7,689.3	2,757.2
Expenses	1,599.1	2,390.9		3,990.0	2,339.0	6,329.0	2,590.1
Operating income	571.0	341.5		912.5	447.8	1,360.3	167.1
Net income (loss) attributable to Valeant Pharmaceuticals International, Inc.	97.7	(53.0	)	44.7	49.5	94.2	(385.9	)
Earnings (loss) per share attributable to Valeant Pharmaceuticals International, Inc.:
Basic	0.29	(0.15	)	0.13	0.14	0.28	(1.12	)
Diluted	0.28	(0.15	)	0.13	0.14	0.27	(1.12	)
Net cash provided by operating activities	491.1	410.5		901.6	736.5	1,638.1	562.3



	2014
	Q1		Q2	Q2 Six Months Ending	Q3 (Revised)	Q3 Nine Months Ending (Revised)	Q4 (Restated)
($ in millions, except per share data)	$		$	$	$	$	$
Revenue	1,886.2		2,041.1	3,927.3	2,043.3	5,970.6	2,235.4
Expenses	1,529.6		1,686.0	3,215.6	1,371.7	4,587.3	1,618.0
Operating income	356.6		355.1	711.7	671.6	1,383.3	617.4
Net (loss) income attributable to Valeant Pharmaceuticals International, Inc.	(22.6	)	125.8	103.2	265.0	368.2	512.5
(Loss) earnings per share attributable to Valeant Pharmaceuticals International, Inc.:
Basic	(0.07	)	0.38	0.31	0.79	1.10	1.53
Diluted	(0.07	)	0.37	0.30	0.78	1.08	1.50
Net cash provided by operating activities	484.3		376.0	860.3	618.7	1,479.0	815.7

CONSOLIDATED BALANCE SHEET

(All dollar amounts expressed in millions of U.S. dollars)

(Unaudited)



	As of September 30,
	2014 (As Previously Reported)⁽¹⁾			Revision Adjustments			2014 (Revised)			Revision Ref
Assets
Current assets:
Cash and cash equivalents	$	808.8		$	—		$	808.8
Trade receivables, net	1,880.2			—			1,880.2
Inventories, net	932.7			0.6			933.3			(a)
Prepaid expenses and other current assets	465.6			—			465.6
Assets held for sale	10.0			—			10.0
Deferred tax assets, net	316.4			—			316.4
Total current assets	4,413.7			0.6			4,414.3
Property, plant and equipment, net	1,300.4			—			1,300.4
Intangible assets, net	11,620.4			—			11,620.4
Goodwill	9,467.8			—			9,467.8
Deferred tax assets, net	23.9			—			23.9
Other long-term assets, net	203.9			—			203.9
Total assets	$	27,030.1		$	0.6		$	27,030.7

Liabilities
Current liabilities:
Accounts payable	$	323.3		$	—		$	323.3
Accrued and other current liabilities	1,993.9			12.9			2,006.8			(a)
Acquisition-related contingent consideration	116.5			—			116.5
Current portion of long-term debt	690.6			—			690.6
Deferred tax liabilities, net	19.0			—			19.0
Total current liabilities	3,143.3			12.9			3,156.2
Acquisition-related contingent consideration	211.3			—			211.3
Long-term debt	15,554.8			—			15,554.8
Pension and other benefit liabilities	157.7			—			157.7
Liabilities for uncertain tax positions	113.8			—			113.8
Deferred tax liabilities, net	2,407.0			(1.9		)	2,405.1			(d)
Other long-term liabilities	208.6			—			208.6
Total liabilities	21,796.5			11.0			21,807.5

Equity
Common shares, no par value, unlimited shares authorized, 334,004,879
issued and outstanding at September 30, 2014	8,334.4			—			8,334.4
Additional paid-in capital	240.2			—			240.2
Accumulated deficit	(2,899.9		)	(10.4		)	(2,910.3		)	(e)
Accumulated other comprehensive loss	(552.0		)	—			(552.0		)
Total Valeant Pharmaceuticals International, Inc. shareholders’ equity	5,122.7			(10.4		)	5,112.3
Noncontrolling interest	110.9			—			110.9
Total equity	5,233.6			(10.4		)	5,223.2
Total liabilities and equity	$	27,030.1		$	0.6		$	27,030.7

____________________________________

(1)

As described in Note 3, the Company adopted guidance issued by the Financial Accounting Standards Board which requires certain debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt, consistent with the presentation of a debt discount. The adoption of this guidance was applied retrospectively and impacted presentation only. The resulting reclassifications between assets and long-term debt did not have a material impact on the Company's financial statements.

CONSOLIDATED STATEMENT OF INCOME

(All dollar amounts expressed in millions of U.S. dollars, except per share data)

(Unaudited)



	Three Months Ended September 30,
	2014 (As Previously Reported)			Revision Adjustments			2014 (Revised)			Revision Ref
Revenues
Product sales	$	2,022.9		$	(12.9	)	$	2,010.0		(a)
Other revenues	33.3			—			33.3
	2,056.2			(12.9		)	2,043.3
Expenses
Cost of goods sold (exclusive of amortization and impairments of finite-lived
intangible assets shown separately below)	545.8			(0.6		)	545.2			(a)
Cost of other revenues	15.0			—			15.0
Selling, general and administrative	504.1			—			504.1
Research and development	59.1			—			59.1
Amortization and impairment of finite-lived intangible assets	393.1			—			393.1
Restructuring, integration and other costs	61.7			—			61.7
In-process research and development impairments and other changes	19.9			—			19.9
Acquisition-related costs	1.6			—			1.6
Acquisition-related contingent consideration	4.0			—			4.0
Other income	(232.0		)	—			(232.0		)
	1,372.3			(0.6		)	1,371.7
Operating income (loss)	683.9			(12.3		)	671.6
Interest income	0.8			—			0.8
Interest expense	(258.4		)	—			(258.4		)
Loss on extinguishment of debt	—			—			—
Foreign exchange and other	(53.0		)	—			(53.0		)
Gain on investments, net	3.4			—			3.4
Income (loss) before provision for (recovery of) income taxes	376.7			(12.3		)	364.4
Provision for (recovery of) income taxes	100.3			(1.9		)	98.4			(d)
Net income (loss)	276.4			(10.4		)	266.0
Less: Net income attributable to noncontrolling interest	1.0			—			1.0
Net income (loss) attributable to Valeant Pharmaceuticals International, Inc.	$	275.4		$	(10.4	)	$	265.0

Earnings (loss) per share attributable to Valeant Pharmaceuticals International, Inc.:
Basic	$	0.82		$	(0.03	)	$	0.79
Diluted	$	0.81		$	(0.03	)	$	0.78

Weighted-average common shares (in millions)
Basic	335.4						335.4
Diluted	341.3						341.3

CONSOLIDATED STATEMENT OF INCOME

(All dollar amounts expressed in millions of U.S. dollars, except per share data)

(Unaudited)



	Nine Months Ended September 30,
	2014 (As Previously Reported)			Revision Adjustments			2014 (Revised)			Revision Ref
Revenues
Product sales	$	5,868.1		$	(12.9	)	$	5,855.2		(a)
Other revenues	115.4			—			115.4
	5,983.5			(12.9		)	5,970.6
Expenses
Cost of goods sold (exclusive of amortization and impairments of finite-lived
intangible assets shown separately below)	1,619.5			(0.6		)	1,618.9			(a)
Cost of other revenues	45.3			—			45.3
Selling, general and administrative	1,501.8			—			1,501.8
Research and development	186.9			—			186.9
Amortization and impairment of finite-lived intangible assets	1,113.9			—			1,113.9
Restructuring, integration and other costs	337.4			—			337.4
In-process research and development impairments and other changes	40.3			—			40.3
Acquisition-related costs	3.7			—			3.7
Acquisition-related contingent consideration	14.8			—			14.8
Other income	(275.7		)	—			(275.7		)
	4,587.9			(0.6		)	4,587.3
Operating income (loss)	1,395.6			(12.3		)	1,383.3
Interest income	3.8			—			3.8
Interest expense	(746.1		)	—			(746.1		)
Loss on extinguishment of debt	(93.7		)	—			(93.7		)
Foreign exchange and other	(63.0		)	—			(63.0		)
Gain on investments, net	5.9			—			5.9
Income (loss) before provision for (recovery of) income taxes	502.5			(12.3		)	490.2
Provision for (recovery of) income taxes	124.4			(1.9		)	122.5			(d)
Net income (loss)	378.1			(10.4		)	367.7
Less: Net loss attributable to noncontrolling interest	(0.5		)	—			(0.5		)
Net income (loss) attributable to Valeant Pharmaceuticals International, Inc.	$	378.6		$	(10.4	)	$	368.2

Earnings (loss) per share attributable to Valeant Pharmaceuticals International, Inc.:
Basic	$	1.13		$	(0.03	)	$	1.10
Diluted	$	1.11		$	(0.03	)	$	1.08

Weighted-average common shares (in millions)
Basic	335.2						335.2
Diluted	341.4						341.4

CONSOLIDATED STATEMENT OF CASH FLOWS

(All dollar amounts expressed in millions of U.S. dollars)

(Unaudited)



	Three Months Ended September 30,
	2014 (As Previously Reported)			Revision Adjustments			2014 (Revised)			Revision Ref
Cash Flow From Operating Activities
Net income	$	276.4		$	(10.4	)	$	266.0
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization, including impairments of finite-lived intangible assets	439.3			—			439.3
Amortization and write-off of debt discounts and debt issuance costs	34.6			—			34.6
In-process research and development impairments	19.9			—			19.9
Acquisition accounting adjustment on inventory sold	12.4			—			12.4
Acquisition-related contingent consideration	4.0			—			4.0
Allowances for losses on accounts receivable and inventories	12.0			—			12.0
Deferred income taxes	74.6			(1.9		)	72.7			(d)
Gain on disposal of assets and businesses	(254.5		)	—			(254.5		)
Reduction to accrued legal settlements	(0.9		)	—			(0.9		)
Payments of accrued legal settlements	(0.2		)	—			(0.2		)
Share-based compensation	20.2			—			20.2
Tax benefits from share-based compensation	(15.9		)	—			(15.9		)
Foreign exchange loss	55.1			—			55.1
Payment of accreted interest on contingent consideration	(1.3		)	—			(1.3		)
Other	9.7			—			9.7
Changes in operating assets and liabilities:
Trade receivables	(121.4		)	—			(121.4		)
Inventories	(41.5		)	(0.6		)	(42.1		)	(a)
Prepaid expenses and other current assets	5.5			—			5.5
Accounts payable, accrued and other liabilities	90.7			12.9			103.6			(a)
Net cash provided by operating activities	618.7			—			618.7

Net cash provided by investing activities	756.3			—			756.3

Net cash used in financing activities	(1,082.1		)	—			(1,082.1		)

Effect of exchange rate changes on cash and cash equivalents	(15.3		)	—			(15.3		)
Net increase in cash and cash equivalents	277.6			—			277.6
Cash and cash equivalents, beginning of period	531.2			—			531.2
Cash and cash equivalents, end of period	$	808.8		$	—		$	808.8

Non- Cash Investing and Financing Activities
Acquisition of businesses, contingent consideration at fair value	$	(16.0	)	$	—		$	(16.0	)
Acquisition of businesses, debt assumed	(4.5		)	—			(4.5		)

CONSOLIDATED STATEMENT OF CASH FLOWS

(All dollar amounts expressed in millions of U.S. dollars)

(Unaudited)



	Nine Months Ended September 30,
	2014 (As Previously Reported)			Revision Adjustments			2014 (Revised)			Revision Ref
Cash Flow From Operating Activities
Net income	$	378.1		$	(10.4	)	$	367.7
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization, including impairments of finite-lived intangible assets	1,248.1			—			1,248.1
Amortization and write-off of debt discounts and debt issuance costs	58.1			—			58.1
In-process research and development impairments	20.3			—			20.3
Acquisition accounting adjustment on inventory sold	21.9			—			21.9
Acquisition-related contingent consideration	14.8			—			14.8
Allowances for losses on accounts receivable and inventories	47.6			—			47.6
Deferred income taxes	63.2			(1.9		)	61.3			(d)
Gain on disposal of assets and businesses	(254.5		)	—			(254.5		)
Reduction to accrued legal settlements	(48.2		)	—			(48.2		)
Payments of accrued legal settlements	(1.2		)	—			(1.2		)
Share-based compensation	60.6			—			60.6
Tax benefits from share-based compensation	(17.1		)	—			(17.1		)
Foreign exchange loss	62.4			—			62.4
Loss on extinguishment of debt	93.7			—			93.7
Payment of accreted interest on contingent consideration	(9.5		)	—			(9.5		)
Other	15.8			—			15.8
Changes in operating assets and liabilities:
Trade receivables	(205.2		)	—			(205.2		)
Inventories	(122.8		)	(0.6		)	(123.4		)	(a)
Prepaid expenses and other current assets	34.5			—			34.5
Accounts payable, accrued and other liabilities	18.4			12.9			31.3			(a)
Net cash provided by operating activities	1,479.0			—			1,479.0

Net cash provided by investing activities	105.8			—			105.8

Net cash used in financing activities	(1,361.4		)	—			(1,361.4		)

Effect of exchange rate changes on cash and cash equivalents	(14.9		)	—			(14.9		)
Net increase in cash and cash equivalents	208.5			—			208.5
Cash and cash equivalents, beginning of period	600.3			—			600.3
Cash and cash equivalents, end of period	$	808.8		$	—		$	808.8

Non- Cash Investing and Financing Activities
Acquisition of businesses, contingent consideration at fair value	$	(65.1	)	$	—		$	(65.1	)
Acquisition of businesses, debt assumed	(8.5		)	—			(8.5		)

CONSOLIDATED STATEMENT OF INCOME

(All dollar amounts expressed in millions of U.S. dollars, except per share data)

(Unaudited)



	Three Months Ended December 31,
	2014 (As Previously Reported)			Restatement Adjustments			2014 (Restated)			Restatement Ref
Revenues
Product sales	$	2,235.5		$	(44.6	)	$	2,190.9		(a)
Other revenues	44.5			—			44.5
	2,280.0			(44.6		)	2,235.4
Expenses
Cost of goods sold (exclusive of amortization and impairments of finite-lived
intangible assets shown separately below)	576.7			(17.9		)	558.8			(a)
Cost of other revenues	13.1			—			13.1
Selling, general and administrative	524.5			—			524.5
Research and development	59.1			—			59.1
Amortization and impairment of finite-lived intangible assets	436.8			—			436.8
Restructuring, integration and other costs	44.3			—			44.3
In-process research and development impairments and other changes	0.7			—			0.7
Acquisition-related costs	2.6			—			2.6
Acquisition-related contingent consideration	(28.9		)	—			(28.9		)
Other expense	7.0			—			7.0
	1,635.9			(17.9		)	1,618.0
Operating income (loss)	644.1			(26.7		)	617.4
Interest income	1.2			—			1.2
Interest expense	(224.9		)	—			(224.9		)
Loss on extinguishment of debt	(35.9		)	—			(35.9		)
Foreign exchange and other	(81.1		)	—			(81.1		)
Gain on investments, net	286.7			—			286.7
Income (loss) before provision for (recovery of) income taxes	590.1			(26.7		)	563.4
Provision for (recovery of) income taxes	56.0			(4.3		)	51.7			(d)
Net income (loss)	534.1			(22.4		)	511.7
Less: Net loss attributable to noncontrolling interest	(0.8		)	—			(0.8		)
Net income (loss) attributable to Valeant Pharmaceuticals International, Inc.	$	534.9		$	(22.4	)	$	512.5

Earnings (loss) per share attributable to Valeant Pharmaceuticals International, Inc.:
Basic	$	1.59		$	(0.06	)	$	1.53
Diluted	$	1.56		$	(0.06	)	$	1.50

Weighted-average common shares (in millions)
Basic	335.8						335.8
Diluted	341.9						341.9

CONSOLIDATED BALANCE SHEET

(All dollar amounts expressed in millions of U.S. dollars)

(Unaudited)



	As of March 31,
	2015 (As Previously Reported)⁽¹⁾			Restatement Adjustments			2015 (Restated)			Restatement Ref
Assets
Current assets:
Cash and cash equivalents	$	1,864.4		$	—		$	1,864.4
Trade receivables, net	2,108.8			—			2,108.8
Inventories, net	998.9			(8.8		)	990.1			(a)
Restricted cash and cash equivalents	10,354.9			—			10,354.9
Prepaid expenses and other current assets	660.9			—			660.9
Assets held for sale	7.8			—			7.8
Deferred tax assets, net	196.5			—			196.5
Total current assets	16,192.2			(8.8		)	16,183.4
Property, plant and equipment, net	1,334.8			1.8			1,336.6			(b)
Intangible assets, net	11,554.6			22.0			11,576.6			(b)
Goodwill	9,161.4			15.0			9,176.4			(b)
Deferred tax assets, net	151.7			—			151.7
Other long-term assets, net	129.9			—			129.9
Total assets	$	38,524.6		$	30.0		$	38,554.6

Liabilities
Current liabilities:
Accounts payable	$	352.5		$	—		$	352.5
Accrued and other current liabilities	2,424.4			2.6			2,427.0			(a), (c)
Acquisition-related contingent consideration	186.3			—			186.3
Current portion of long-term debt	122.8			—			122.8
Deferred tax liabilities, net	11.1			—			11.1
Total current liabilities	3,097.1			2.6			3,099.7
Acquisition-related contingent consideration	198.9			38.8			237.7			(b)
Long-term debt	25,856.6			—			25,856.6
Pension and other benefit liabilities	227.7			—			227.7
Liabilities for uncertain tax positions	98.7			—			98.7
Deferred tax liabilities, net	2,261.5			(2.6		)	2,258.9			(d)
Other long-term liabilities	208.9			—			208.9
Total liabilities	31,949.4			38.8			31,988.2

Equity
Common shares, no par value, unlimited shares authorized, 342,266,409
issued and outstanding at March 31, 2015	9,810.3			—			9,810.3
Additional paid-in capital	260.9			—			260.9
Accumulated deficit	(2,291.3		)	(8.8		)	(2,300.1		)	(e)
Accumulated other comprehensive loss	(1,327.6		)	—			(1,327.6		)
Total Valeant Pharmaceuticals International, Inc. shareholders’ equity	6,452.3			(8.8		)	6,443.5
Noncontrolling interest	122.9			—			122.9
Total equity	6,575.2			(8.8		)	6,566.4
Total liabilities and equity	$	38,524.6		$	30.0		$	38,554.6

____________________________________

(1)

CONSOLIDATED STATEMENT OF INCOME

(All dollar amounts expressed in millions of U.S. dollars, except per share data)

(Unaudited)



	Three Months Ended March 31,
	2015 (As Previously Reported)			Restatement Adjustments			2015 (Restated)			Restatement Ref
Revenues
Product sales	$	2,146.9		$	(20.8	)	$	2,126.1		(a)
Other revenues	44.0			—			44.0
	2,190.9			(20.8		)	2,170.1
Expenses
Cost of goods sold (exclusive of amortization and impairments of finite-lived
intangible assets shown separately below)	560.4			(52.5		)	507.9			(a)
Cost of other revenues	14.3			—			14.3
Selling, general and administrative	573.8			—			573.8
Research and development	55.8			—			55.8
Amortization and impairment of finite-lived intangible assets	365.2			—			365.2
Restructuring, integration and other costs	55.0			—			55.0
Acquisition-related costs	9.8			4.1			13.9			(c)
Acquisition-related contingent consideration	7.1			—			7.1
Other expense	6.1			—			6.1
	1,647.5			(48.4		)	1,599.1
Operating income	543.4			27.6			571.0
Interest income	0.9			—			0.9
Interest expense	(297.8		)	—			(297.8		)
Loss on extinguishment of debt	(20.0		)	—			(20.0		)
Foreign exchange and other	(71.1		)	—			(71.1		)
Income before provision for income taxes	155.4			27.6			183.0
Provision for income taxes	80.9			3.6			84.5			(d)
Net income	74.5			24.0			98.5
Less: Net income attributable to noncontrolling interest	0.8			—			0.8
Net income attributable to Valeant Pharmaceuticals International, Inc.	$	73.7		$	24.0		$	97.7

Earnings per share attributable to Valeant Pharmaceuticals International, Inc.:
Basic	$	0.22		$	0.07		$	0.29
Diluted	$	0.21		$	0.07		$	0.28

Weighted-average common shares (in millions)
Basic	336.8						336.8
Diluted	343.4						343.4

CONSOLIDATED STATEMENT OF CASH FLOWS

(All dollar amounts expressed in millions of U.S. dollars)

(Unaudited)



	Three Months Ended March 31,
	2015 (As Previously Reported)			Restatement Adjustments			2015 (Restated)			Restatement Ref
Cash Flow From Operating Activities
Net income	$	74.5		$	24.0		$	98.5
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization, including impairments of finite-lived intangible assets	407.0			—			407.0
Amortization and write-off of debt discounts and debt issuance costs	10.5			—			10.5
Acquisition accounting adjustment on inventory sold	24.5			—			24.5
Acquisition-related contingent consideration	7.1			—			7.1
Allowances for losses on accounts receivable and inventories	12.2			—			12.2
Deferred income taxes	62.5			3.6			66.1			(d)
Additions to accrued legal settlements	1.5			—			1.5
Payments of accrued legal settlements	(3.0		)	—			(3.0		)
Share-based compensation	35.0			—			35.0
Tax benefits from share based compensation	(17.9		)	—			(17.9		)
Foreign exchange loss	75.9			—			75.9
Loss on extinguishment of debt	20.0			—			20.0
Payment of accreted interest on contingent consideration	(2.2		)	—			(2.2		)
Other	(7.2		)	—			(7.2		)
Changes in operating assets and liabilities:
Trade receivables	(67.0		)	—			(67.0		)
Inventories	(38.5		)	(52.5		)	(91.0		)	(a)
Prepaid expenses and other current assets	(45.1		)	—			(45.1		)
Accounts payable, accrued and other liabilities	(58.7		)	24.9			(33.8		)	(a), (c)
Net cash provided by operating activities	491.1			—			491.1

Net cash used in investing activities	(11,240.5		)	—			(11,240.5		)

Net cash provided by financing activities	12,306.3			—			12,306.3

Effect of exchange rate changes on cash and cash equivalents	(15.1		)	—			(15.1		)
Net increase in cash and cash equivalents	1,541.8			—			1,541.8
Cash and cash equivalents, beginning of period	322.6			—			322.6
Cash and cash equivalents, end of period	$	1,864.4		$	—		$	1,864.4

Non- Cash Investing and Financing Activities
Acquisition of businesses, contingent consideration at fair value	$	(286.9	)	$	—		$	(286.9	)
Acquisition of businesses, debt assumed	—			—			—

CONSOLIDATED STATEMENT OF INCOME

(All dollar amounts expressed in millions of U.S. dollars, except per share data)

(Unaudited)



	Six Months Ended June 30,
	2015 (As Previously Reported)			Restatement Adjustments			2015 (Restated)			Restatement Ref
Revenues
Product sales	$	4,841.9		$	(20.8	)	$	4,821.1		(a)
Other revenues	81.4			—			81.4
	4,923.3			(20.8		)	4,902.5
Expenses
Cost of goods sold (exclusive of amortization and impairments of finite-lived
intangible assets shown separately below)	1,230.3			(52.5		)	1,177.8			(a)
Cost of other revenues	29.5			—			29.5
Selling, general and administrative	1,259.3			—			1,259.3
Research and development	136.9			—			136.9
Amortization and impairment of finite-lived intangible assets	950.6			—			950.6
Restructuring, integration and other costs	198.4			—			198.4
In-process research and development impairments and other changes	12.3			—			12.3
Acquisition-related costs	19.3			4.1			23.4			(c)
Acquisition-related contingent consideration	18.8			—			18.8
Other expense	183.0			—			183.0
	4,038.4			(48.4		)	3,990.0
Operating income	884.9			27.6			912.5
Interest income	1.8			—			1.8
Interest expense	(710.5		)	—			(710.5		)
Loss on extinguishment of debt	(20.0		)	—			(20.0		)
Foreign exchange and other	(65.5		)	—			(65.5		)
Income before provision for income taxes	90.7			27.6			118.3
Provision for income taxes	67.8			3.6			71.4			(d)
Net income	22.9			24.0			46.9
Less: Net income attributable to noncontrolling interest	2.2			—			2.2
Net income attributable to Valeant Pharmaceuticals International, Inc.	$	20.7		$	24.0		$	44.7

Earnings per share attributable to Valeant Pharmaceuticals International, Inc.:
Basic	$	0.06		$	0.07		$	0.13
Diluted	$	0.06		$	0.07		$	0.13

Weighted-average common shares (in millions)
Basic	340.5						340.5
Diluted	347.1						347.1

CONSOLIDATED STATEMENT OF CASH FLOWS

(All dollar amounts expressed in millions of U.S. dollars)

(Unaudited)



	Six Months Ended June 30,
	2015 (As Previously Reported)			Restatement Adjustments			2015 (Restated)			Restatement Ref
Cash Flow From Operating Activities
Net income	$	22.9		$	24.0		$	46.9
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization, including impairments of finite-lived intangible assets	1,042.0			—			1,042.0
Amortization and write-off of debt discounts and debt issuance costs	103.2			—			103.2
In-process research and development impairments	12.3			—			12.3
Acquisition accounting adjustment on inventory sold	70.5			—			70.5
Acquisition-related contingent consideration	18.8			—			18.8
Allowances for losses on accounts receivable and inventories	26.8			—			26.8
Deferred income taxes	12.4			3.6			16.0			(d)
Additions to accrued legal settlements	6.3						6.3
Payments of accrued legal settlements	(5.9		)	—			(5.9		)
Share-based compensation	60.9			—			60.9
Tax benefits from share-based compensation	(25.6		)	—			(25.6		)
Foreign exchange loss	65.6			—			65.6
Loss on extinguishment of debt	20.0			—			20.0
Payment of accreted interest on contingent consideration	(12.1		)	—			(12.1		)
Other	(9.9		)	—			(9.9		)
Changes in operating assets and liabilities:
Trade receivables	(308.8		)	—			(308.8		)
Inventories	(86.8		)	(52.5		)	(139.3		)	(a)
Prepaid expenses and other current assets	(163.5		)	—			(163.5		)
Accounts payable, accrued and other liabilities	52.5			24.9			77.4			(a), (c)
Net cash provided by operating activities	901.6			—			901.6

Net cash used in investing activities	(13,885.7		)	—			(13,885.7		)

Net cash provided by financing activities	13,631.6			—			13,631.6

Effect of exchange rate changes on cash and cash equivalents	(12.1		)	—			(12.1		)
Net increase in cash and cash equivalents	635.4			—			635.4
Cash and cash equivalents, beginning of period	322.6			—			322.6
Cash and cash equivalents, end of period	$	958.0		$	—		$	958.0

Non- Cash Investing and Financing Activities
Acquisition of businesses, contingent consideration at fair value	$	(674.6	)	$	38.8		$	(635.8	)	(b)
Acquisition of businesses, debt assumed	(3,123.1		)	—			(3,123.1		)

CONSOLIDATED STATEMENT OF INCOME

(All dollar amounts expressed in millions of U.S. dollars, except per share data)

(Unaudited)



	Nine Months Ended September 30,
	2015 (As Previously Reported)			Restatement Adjustments			2015 (Restated)			Restatement Ref
Revenues
Product sales	$	7,590.1		$	(20.8	)	$	7,569.3		(a)
Other revenues	120.0			—			120.0
	7,710.1			(20.8		)	7,689.3
Expenses
Cost of goods sold (exclusive of amortization and impairments of finite-lived
intangible assets shown separately below)	1,864.9			(52.5		)	1,812.4			(a)
Cost of other revenues	43.1			—			43.1
Selling, general and administrative	1,956.9			—			1,956.9
Research and development	238.5			—			238.5
Amortization and impairment of finite-lived intangible assets	1,629.8			—			1,629.8
Restructuring, integration and other costs	274.0			—			274.0
In-process research and development impairments and other changes	108.1			—			108.1
Acquisition-related costs	26.3			4.1			30.4			(c)
Acquisition-related contingent consideration	22.6			—			22.6
Other expense	213.2			—			213.2
	6,377.4			(48.4		)	6,329.0
Operating income	1,332.7			27.6			1,360.3
Interest income	2.5			—			2.5
Interest expense	(1,130.7		)	—			(1,130.7		)
Loss on extinguishment of debt	(20.0		)	—			(20.0		)
Foreign exchange and other	(99.5		)	—			(99.5		)
Income before provision for income taxes	85.0			27.6			112.6
Provision for income taxes	10.4			3.6			14.0			(d)
Net income	74.6			24.0			98.6
Less: Net income attributable to noncontrolling interest	4.4			—			4.4
Net income attributable to Valeant Pharmaceuticals International, Inc.	$	70.2		$	24.0		$	94.2

Earnings per share attributable to Valeant Pharmaceuticals International, Inc.:
Basic	$	0.21		$	0.07		$	0.28
Diluted	$	0.20		$	0.07		$	0.27

Weighted-average common shares (in millions)
Basic	340.8						340.8
Diluted	347.2						347.2

CONSOLIDATED STATEMENT OF CASH FLOWS

(All dollar amounts expressed in millions of U.S. dollars)

(Unaudited)



	Nine Months Ended September 30,
	2015 (As Previously Reported)			Restatement Adjustments			2015 (Restated)			Restatement Ref
Cash Flow From Operating Activities
Net income	$	74.6		$	24.0		$	98.6
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization, including impairments of finite-lived intangible assets	1,768.4			—			1,768.4
Amortization and write-off of debt discounts and debt issuance costs	123.7			—			123.7
In-process research and development impairments	108.1			—			108.1
Acquisition accounting adjustment on inventory sold	97.7			—			97.7
Acquisition-related contingent consideration	22.6			—			22.6
Allowances for losses on accounts receivable and inventories	46.4			—			46.4
Deferred income taxes	(79.0		)	3.6			(75.4		)	(d)
Loss on disposal of assets and liabilities	9.2			—			9.2
Additions to accrued legal settlements	31.9						31.9
Payments of accrued legal settlements	(32.1		)	—			(32.1		)
Share-based compensation	111.4			—			111.4
Tax benefits from share-based compensation	(21.7		)	—			(21.7		)
Foreign exchange loss	96.6			—			96.6
Loss on extinguishment of debt	20.0			—			20.0
Payment of accreted interest on contingent consideration	(19.8		)	—			(19.8		)
Other	(13.6		)	—			(13.6		)
Changes in operating assets and liabilities:
Trade receivables	(656.0		)	—			(656.0		)
Inventories	(132.4		)	(52.5		)	(184.9		)	(a)
Prepaid expenses and other current assets	(252.0		)	—			(252.0		)
Accounts payable, accrued and other liabilities	334.1			24.9			359.0			(a), (c)
Net cash provided by operating activities	1,638.1			—			1,638.1

Net cash used in investing activities	(14,041.9		)	—			(14,041.9		)

Net cash provided by financing activities	13,523.2			—			13,523.2

Effect of exchange rate changes on cash and cash equivalents	(22.0		)	—			(22.0		)
Net increase in cash and cash equivalents	1,097.4			—			1,097.4
Cash and cash equivalents, beginning of period	322.6			—			322.6
Cash and cash equivalents, end of period	$	1,420.0		$	—		$	1,420.0

Non- Cash Investing and Financing Activities
Acquisition of businesses, contingent consideration at fair value	$	(783.3	)	$	38.8		$	(744.5	)	(b)
Acquisition of businesses, debt assumed	(3,129.2		)	—			(3,129.2		)