Investor Contact Media Contact Arthur Shannon Lainie Keller arthur.shannon bauschhealth.com lainie.keller bauschhealth.com (514) 856-3855 (908) 927-1198 (877) 281-6642 (toll free) BAUSCH HEALTH COMPANIES INC. ANNOUNCES S

BAUSCH HEALTH COMPANIES INC. ANNOUNCES SECOND-QUARTER 2021 RESULTS

Second-Quarter 2021 Financial Results

Revenues of $2.100 Billion

GAAP Net Loss of $595 Million

Adjusted EBITDA (non-GAAP)1 of $826 Million

GAAP Cash Generated from Operations of $395 Million

Thomas J. Appio Appointed CEO of Bausch Pharma2

Bausch Health Announced Plans to Pursue an Initial Public Offering for Solta Medical3

Revised 2021 Full-Year Revenue and Adjusted EBITDA (non-GAAP) Guidance Ranges, Primarily to Reflect Amoun Pharmaceutical Divestiture

LAVAL, Quebec, Aug. 3, 2021 - Bausch Health Companies Inc. (NYSE TSX BHC) ("Bausch Health" or the "Company" or "we") today announced its second-quarter 2021 financial results.

"Our second-quarter 2021 results demonstrate impressive overall company growth as our businesses continue to recover from the COVID-19 pandemic," said Joseph C. Papa, chairman and CEO, Bausch Health. "We saw strong performance with market share gains for many of our leading brands and strong cash flow generation in the quarter, which has enabled us to make great strides in reducing our debt."

"Today we announced our plans to pursue an initial public offering for our Solta Medical business3, which is an important step in the previously announced spinoff of the Bausch + Lomb eye health business, resulting in the creation of three attractive companies Bausch + Lomb, a pure-play, integrated eye health company Bausch Pharma2, a global diversified pharmaceuticals business and Solta Medical, a leading global provider in medical aesthetics. We remain committed to unlocking value across these three attractive businesses as soon as possible," continued Mr. Papa.

Select Company Highlights

Increased total Company reported revenue by 26% compared to the second quarter of 2020

Expanded launch of ENVIVE , a daily over-the-counter probiotic supplement, in the United States

Launched expanded parameters for Bausch + Lomb ULTRA Multifocal for Astigmatism contact lenses

Completed divestiture of Amoun Pharmaceutical Company S.A.E. to Abu-Dhabi-based ADQ

Repaid debt by $500 million in the first half of 2021 using cash generated from operations Bausch Health has no debt maturities until 2025

___________________________________

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 The remainder of Bausch Health is referred to as "Bausch Pharma" and will assume a new name upon the separation of the Company's eye health business, Bausch + Lomb.

3 This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities.

Refinanced $1.6 billion of 2024 Senior Secured Notes using net proceeds from newly issued $1.6 billion of 4.875% 2028 Senior Secured Notes and cash generated from operations

Sam Eldessouky assumed the role of Chief Financial Officer on June 1, 2021

Today, the Company announced plans to pursue an initial public offering for its Solta Medical business3

Pipeline Advancements

Initiated Phase 2 trial to evaluate amiselimod (S1P modulator) for the treatment of mild to moderate ulcerative colitis

Completed enrollment of the second Phase 3 trial evaluating the investigational drug NOV03 (perfluorohexyloctane)

ClearVisc dispersive ophthalmic viscosurgical device for use in ophthalmic surgery was approved by the U.S. Food and Drug Administration (FDA) and launched in June 2021

The FDA accepted the resubmitted New Drug Application for XIPERE 4 (triamcinolone acetonide suprachoroidal injectable suspension) with a Prescription Drug User Fee Act (PDUFA) date of Oct. 30, 2021

Entered into an agreement with Lochan LLC to develop the next generation of Bausch + Lomb's eyeTELLIGENCE clinical decision support software

VYZULTA (latanoprostene bunod ophthalmic solution), 0.024%, received regulatory approval in Brazil, Jordan, Qatar and the United Arab Emirates

Thomas J. Appio Has Been Appointed CEO of Bausch Pharma2, and Bausch Health Names Additional Leadership Roles for Bausch Pharma2

Today, the Company announced that Thomas J. Appio will serve as CEO of Bausch Pharma2 effective upon separation of the Bausch + Lomb eye health business. Mr. Appio joined the Company from Bausch + Lomb in 2013, and under his leadership the organization has experienced accelerated growth in revenue and profitability within many of its international businesses. Previously, Mr. Appio served 23 years with Schering-Plough in a wide range of leadership and operations responsibilities.

Additionally, Robert Spurr has been appointed president of the U.S. market for Bausch Pharma2 effective upon separation of the Bausch + Lomb eye health business. Mr. Spurr currently serves as president of the Salix Pharmaceuticals business. He joined Bausch Health in 2018 as senior vice president, Market Access and Commercial Operations, after serving in various leadership roles at Novartis, Ortho-McNeil, Aventis and Sandoz, among other pharmaceutical companies.

Robert N. Power has been appointed chairman of Bausch Pharma2 effective upon separation of the Bausch + Lomb eye health business. Mr. Power has served as a member of the Bausch Health Board of Directors since 2008. He was previously a faculty member at The Wharton School of Business, University of Pennsylvania and has more than 25 years of experience in the pharmaceutical and biotechnology industry.

Second-Quarter 2021 Revenue Performance

Total reported revenues were $2.100 billion for the second quarter of 2021, as compared to $1.664 billion in the second quarter of 2020, an increase of $436 million, which was primarily due to higher volumes resulting from the positive impacts of the recovery from the COVID-19 pandemic.

___________________________________

4 Provisional name In 2019, the Company acquired an exclusive license from Clearside Biomedical, Inc. for the commercialization and development of XIPERETM in the United States and Canada.

Excluding the favorable impact of foreign exchange of $60 million and the impact of divestitures and discontinuations of $4 million, revenue increased organically1,5 by $380 million, or 23%, compared to the second quarter of 2020.

Revenues by segment were as follows

Bausch + Lomb Segment6

Bausch + Lomb segment revenues were $934 million for the second quarter of 2021, as compared to $677 million for the second quarter of 2020, an increase of $257 million, or 38%. Excluding the favorable impact of foreign exchange of $33 million and the impact of divestitures and discontinuations of $2 million, the Bausch + Lomb segment increased organically1,5 by approximately 33% compared to the second quarter of 2020, primarily due to higher sales resulting from the positive impacts of the recovery from the COVID-19 pandemic.

Bausch Pharma revenues (non-GAAP)9 were $1.166 billion for the second quarter of 2021, as compared to $987 million for the second quarter of 2020, an increase of $179 million, or 18%. Excluding the favorable impact of foreign exchange of $27 million and the impact of divestitures and discontinuations of $2 million, revenue increased organically1,5 by 16%.

Salix segment reported and organic1,5 revenues were $516 million for the second quarter of 2021, as compared to $404 million for the second quarter of 2020, an increase of $112 million, or 28%. The increase was primarily driven by higher sales resulting from the positive impacts of the recovery

___________________________________

5 Organic growth change, a non-GAAP metric, is defined as a change on a period-over-period basis in revenues on a constant currency basis (if applicable) excluding the impact of recent acquisitions, divestitures and discontinuations.

6 In connection with the planned separation of the Company's eye health business into an independent publicly traded entity from the remainder of Bausch Health Companies Inc., the Company has realigned and has begun managing its operations in a manner consistent with the organizational structure of the two separate entities as proposed by the separation. Commencing in the first quarter of 2021, the Company realigned its segment reporting structure and now operates in five reportable segments. Further, in the second quarter of 2021, the Company moved certain products previously reported in the International Rx reporting unit to the Global Consumer or Global Ophtho Rx reporting units. Prior period presentations have been recast to conform to the current segment reporting structure.

7 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 2021 reported amounts adjusted to exclude currency impact, calculated using 2020 monthly average exchange rates, to the actual 2020 reported amounts.

8 Bausch Pharma revenues, a non-GAAP metric, are determined by subtracting Bausch + Lomb segment revenues for the applicable period from total Bausch Health revenues for the applicable period.

from the COVID-19 pandemic. In the second quarter of 2021, sales of XIFAXAN (rifaximin) grew by 28% compared to the second quarter of 2020.

International Rx Segment6

International Rx segment revenues were $313 million for the second quarter of 2021, as compared to $249 million for the second quarter of 2020, an increase of $64 million, or 26%. Excluding the favorable impact of foreign exchange of $23 million and the impact of divestitures and discontinuations of $1 million, the International Rx segment increased organically1,5 by approximately 17% compared to the second quarter of 2020, primarily driven by higher sales resulting from the positive impacts of the recovery from the COVID-19 pandemic.

Ortho Dermatologics Segment6

Ortho Dermatologics segment revenues were $137 million for the second quarter of 2021, as compared to $117 million for the second quarter of 2020, an increase of $20 million, or 17%. Excluding the favorable impact of foreign exchange of $4 million, the Ortho Dermatologics segment grew organically1,5 by approximately 14% compared to the second quarter of 2020, primarily driven by higher sales of the Thermage franchise, which grew by 51% compared to the second quarter of 2020, partially offset by a decrease in net realized pricing of our medical dermatology products and by the impacts of the previously reported loss of exclusivity of products in the segment, which negatively impacted revenues by approximately $7 million.

Diversified Products Segment6

Diversified Products segment revenues were $200 million for the second quarter of 2021, as compared to $217 million for the second quarter of 2020, a decrease of $17 million, or 8%. Excluding the impact of divestitures and discontinuations of $1 million, the Diversified Products segment declined organically1,5 by 7% compared to the second quarter of 2020. The decrease in revenue was primarily attributable to a decrease in net realized pricing and the impacts from the previously reported loss of exclusivity for a basket of products, partially offset by higher sales that resulted from the positive impacts of the recovery from the COVID-19 pandemic.

Operating loss was $270 million for the second quarter of 2021, as compared to operating loss of $27 million for the second quarter of 2020, an unfavorable change of $243 million. The change was primarily driven by the increase in Other expense, primarily attributable to higher adjustments related to the settlement of certain litigation matters in the second quarter of 2021, an increase in Selling, general and administrative expenses and the impacts of a recall due to a quality issue at a third-party supplier partially offset by an increase in contribution due to the positive impacts of the recovery of the COVID-19 pandemic.

Net loss for the second quarter of 2021 was $595 million, as compared to net loss of $326 million for the same period in 2020, an unfavorable change of $269 million. The change was primarily due to the unfavorable change in our operating results coupled with a decrease in the benefit from income taxes.

Adjusted net income (non-GAAP)1 for the second quarter of 2021 was $352 million, as compared to adjusted net income of $165 million for the second quarter of 2020, an increase of $187 million.

Cash Generated from Operations

The Company generated $395 million of cash from operations (GAAP basis) in the second quarter of 2021, as compared to $200 million in the second quarter of 2020, an increase of $195 million, or 98%. The increase in cash from operations was primarily attributed to the net positive impacts of the recovery of the COVID-19 pandemic and the timing of payments in the ordinary course of business.

GAAP Earnings Per Share (EPS) Diluted for the second quarter of 2021 was ($1.66), as compared to ($0.92) for the second quarter of 2020.

Adjusted EBITDA (non-GAAP)1

Adjusted EBITDA (non-GAAP)1 was $826 million for the second quarter of 2021, as compared to $622 million for the second quarter of 2020, an increase of $204 million. The increase was primarily driven by an increase in contribution due to the positive impacts of the recovery of the COVID-19 pandemic partially offset by an increase in Selling, general and administrative expenses and the impacts of a recall due to a quality issue at a third-party supplier.

2021 Financial Outlook

Bausch Health revised its revenue and Adjusted EBITDA (non-GAAP) guidance ranges for the full year of 2021, primarily due to the divestiture of Amoun Pharmaceutical Company S.A.E., the impact of a recall of certain Consumer products due to a quality issue at a third-party supplier and the negative impact of foreign exchange

Full-year revenue range of $8.60 - $8.80 billion to $8.40 - $8.60 billion

Full-year Adjusted EBITDA (non-GAAP) range of $3.40 - $3.55 billion to $3.35 - $3.50 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). These statements represent forward-looking information and may represent a financial outlook, and actual results may vary. Please see the risks and assumptions referred to in the Forward-looking Statements section of this news release.

Additional Highlights

Bausch Health's cash, cash equivalents and restricted cash were $1.856 billion9,10 at June 30, 2021

The Company's availability under its 2023 Revolving Credit Facility was $1.172 billion at June 30, 2021

Basic weighted average shares outstanding for the second quarter of 2021 were 359.1 million shares. Diluted weighted average shares outstanding for the second quarter of 2021 were 363.6 million shares11

___________________________________

9 Cash, cash equivalents and restricted cash at June 30, 2021 includes restricted cash of $1.210 billion of payments into an escrow fund under the terms of a settlement agreement regarding certain U.S. securities litigation (which settlement agreement is subject to two objectors' appeals of the final court approval of the agreement).

10 As of June 30, 2021, cash and cash equivalents excludes $62 million of cash and cash equivalents classified as held for sale associated with the sale of the Company's equity interests in Amoun Pharmaceutical Company S.A. E. on July 26, 2021.

11 Diluted weighted average shares includes the dilutive impact of options and restricted stock units, which are approximately 4,558,000 common shares for the 3 months ended June 30, 2021, and which are excluded when calculating GAAP diluted loss per share because the effect of including the impact would be anti-dilutive.

Conference Call Details

Bausch Health Companies Inc. (NYSE TSX BHC) is a global company whose mission is to improve people's lives with our health care products. We develop, manufacture and market a range of pharmaceutical, medical device and over-the-counter products, primarily in the therapeutic areas of eye health, gastroenterology and dermatology. We are delivering on our commitments as we build an innovative company dedicated to advancing global health. For more information, visit www.bauschhealth.com and connect with us on Twitter and LinkedIn.

Forward-looking Statements

This news release contains forward-looking information and statements, within the meaning of applicable securities laws (collectively, "forward-looking statements"), including, but not limited to, Bausch Health's future prospects and performance, including the Company's 2021 full-year guidance, the Company's plan to separate its eye health business from the remainder of Bausch Health, the Company's plans to pursue an IPO of its Solta Medical business and the anticipated impact of the COVID-19 pandemic on the Company and the Company's recovery therefrom. Forward-looking statements may generally be identified by the use of the words "anticipates," "expects," "intends," "plans," "should," "could," "would," "may," "believes," "estimates," "potential," "target," or "continue" and variations or similar expressions, and phrases or statements that certain actions, events or results may, could, should or will be achieved, received or taken, or will occur or result, and similar such expressions also identify forward-looking information. 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 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 U.S. Securities and Exchange Commission and the Canadian Securities Administrators, which risks and uncertainties are incorporated herein by reference. They also include, but are not limited to, risks

and uncertainties relating to the Company's proposed plan to separate its eye health business from the remainder of Bausch Health, including the expected benefits and costs of the separation transaction, the expected timing of completion of the separation transaction and its terms, the Company's ability to complete the separation transaction considering the various conditions to the completion of the separation transaction (some of which are outside the Company's control, including conditions related to regulatory matters and a possible shareholder vote, if applicable), that market or other conditions are no longer favorable to completing the transaction, that any shareholder, stock exchange, regulatory or other approval (if required) is not obtained on the terms or timelines anticipated or at all, business disruption during the pendency of or following the separation transaction, diversion of management time on separation transaction-related issues, retention of existing management team members, the reaction of customers and other parties to the separation transaction, the qualification of the separation transaction as a tax-free transaction for Canadian and or U.S. federal income tax purposes (including whether or not an advance ruling from either or both of the Canada Revenue Agency and the Internal Revenue Service will be sought or obtained), potential dis-synergy costs between the separated entity and the remainder of Bausch Health, the impact of the separation transaction on relationships with customers, suppliers, employees and other business counterparties, general economic conditions, conditions in the markets Bausch Health is engaged in, behavior of customers, suppliers and competitors, technological developments and legal and regulatory rules affecting Bausch Health's business. In particular, the Company can offer no assurance that any separation transaction will occur at all, or that any separation transaction will occur on the terms and timelines anticipated by the Company. They also include, but are not limited to, risks and uncertainties relating to the Company's proposed plan to pursue an IPO of its Solta Medical business, including the expected timing of completion of such transaction and the Company's ability to complete such transaction, that market or other conditions are no longer favorable to completing the transaction on a timely basis or at all, the receipt of (or failure to receive) the regulatory approvals required in connection with the transaction and the timing of receipt of such approvals, business disruption during the pendency of or following such transaction, diversion of management time on transaction-related issues, retention of Solta Medical management team members, the reaction of customers and other parties to such transaction, and the impact of such transaction on relationships with customers, suppliers, employees and other business counterparties and other events that could adversely impact the completion of such transaction, including industry or economic conditions outside of Bausch Health's control. In particular, the Company can offer no assurance that any IPO will occur at all, or that any such transaction will occur on the timelines anticipated by the Company. They also include, but are not limited to, risks and uncertainties caused by or relating to the evolving COVID-19 pandemic, the fear of that pandemic, the availability and effectiveness of vaccines for COVID-19, COVID-19 vaccine immunization rates, the emergence of variant strains of COVID-19, and the potential effects of that pandemic, the severity, duration and future impact of which are highly uncertain and cannot be predicted, and which may have a material adverse impact on the Company, including but not limited to its supply chain, third-party suppliers, project development timelines, employee base, liquidity, stock price, financial condition and costs (which may increase) and revenue and margins (both of which may decrease). In addition, certain material factors and assumptions have been applied in making these forward-looking statements, including, without limitation, assumptions regarding our 2021 full-year guidance with respect to expectations regarding base performance and management's belief regarding the impact of the COVID-19 pandemic and associated responses on such base performance and the operations and financial results of the Company generally, expected currency impact, the expected timing and impact of loss of exclusivity for certain of our products, expectations regarding the impact of a recall of certain Consumer products as a result of a quality issue at a third-party supplier, the impact of the Amoun divestiture, expectations regarding gross margin, adjusted SG A expense (non-GAAP) and the Company's ability to continue to manage such expense in the manner anticipated and the anticipated timing and extent of the Company's R D expense and the assumption 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. Management has also made certain assumptions in assessing the anticipated impacts of the

COVID-19 pandemic on the Company and its results of operations and financial conditions, including that there will be no material restrictions on access to health care products and services resulting from a possible resurgence of the virus and variant strains thereof on a global basis in 2021 there will be increased availability and use of effective vaccines that the strict social restrictions in the first half of 2020 will not be materially re-enacted in the event of a material resurgence of the virus and variant strains thereof that there will be an ongoing, gradual global recovery as the macroeconomic and health care impacts of the COVID-19 pandemic run their course that the largest impact to the Company's businesses were seen in the second quarter of 2020 that our revenues will likely return to pre-pandemic levels during 2021, but that rates of recovery will vary by geography and business unit, with some regions and business units expected to lag in recovery possibly beyond 2021 and no major interruptions in the Company's supply chain and distribution channels. If any of these assumptions regarding the impacts of the COVID-19 pandemic are incorrect, our actual results could differ materially from those described in these forward-looking statements.

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 in the circumstances, 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. Bausch Health undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect actual outcomes, unless required by law.

Non-GAAP Information

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 change, (iii) constant currency and (iv) Bausch Pharma revenues. As discussed below, we also provide Adjusted Net Income (non-GAAP) to provide supplemental information to readers. Management uses these non-GAAP measures as key metrics in the evaluation of the Company's 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 the 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 such similarly titled non-GAAP financial measures used by other companies. 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 financial 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 loss attributable to Bausch Health Companies Inc. (its most directly comparable GAAP financial measure) adjusted for interest expense, net, (Benefit from) provision for income taxes, depreciation and amortization and certain other items described below. Management 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. 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, 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) is net loss attributable to Bausch Health Companies Inc. (its most directly comparable GAAP financial measure) adjusted for interest expense, net, (Benefit from) provision for income taxes, depreciation and amortization and the following items

Asset impairments, including loss on assets held for sale The Company has excluded the impact of impairments of finite-lived and indefinite-lived intangible assets, 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 impairments of intangible assets and assets held for sale from measuring the performance of the Company and the business, the Company believes that it is important for investors to understand that intangible assets contribute to revenue generation.

Goodwill impairments The Company excludes the impact of goodwill impairments. When the Company has made acquisitions where the consideration paid was in excess of the fair value of the net assets acquired, the remaining purchase price is recorded as goodwill. For assets that we developed ourselves, no goodwill is recorded. Goodwill is not amortized but is tested for impairment. The amount of goodwill impairment is measured as the excess of a reporting unit's carrying value over its fair value. Management excludes these charges in measuring the performance of the Company and the business.

Restructuring and integration costs The Company has incurred restructuring costs as it implemented certain strategies, which involved, among other things, improvements to its infrastructure and operations, 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. 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.