RECONCILIATIONS OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION
To supplement Jazz Pharmaceuticals plc's financial results presented in accordance with U.S. generally accepted accounting principles, or GAAP, the company uses certain non-GAAP (also referred to as adjusted or non-GAAP adjusted) financial measures. The tables that are included in the PDF files linked below present certain financial information on a GAAP reported and non-GAAP adjusted basis for Jazz Pharmaceuticals plc and its consolidated subsidiaries for the periods specified, along with reconciliations of the non-GAAP financial measures presented to the most directly comparable GAAP reported measures. The non-GAAP financial measures included in the tables are not meant to be considered in isolation or as a substitute for comparable GAAP reported measures and should be read in conjunction with the consolidated financial statements prepared in accordance with GAAP included in Jazz Pharmaceuticals’ quarterly and annual reports. The financial results for the periods presented in the tables are not necessarily indicative of the results to be expected for any other interim period or for any future period.
The company believes that each of the non-GAAP financial measures provides useful supplementary information to, and facilitates additional analysis by, investors and analysts. In particular, the company believes that each of these non-GAAP financial measures, when considered together with the company's financial information prepared in accordance with GAAP, can enhance investors' and analysts' ability to meaningfully compare the company's results from period to period and to its forward-looking guidance, and to identify operating trends in the company's business. In addition, these non-GAAP financial measures are regularly used by investors and analysts to model and track the company's financial performance. Jazz Pharmaceuticals' management also regularly uses these non-GAAP financial measures internally to understand, manage and evaluate the company's business and to make operating decisions, and compensation of executives is based in part on certain of these non-GAAP financial measures. Because these non-GAAP financial measures are important internal measurements for Jazz Pharmaceuticals' management, the company also believes that these non-GAAP financial measures are useful to investors and analysts since these measures allow for greater transparency with respect to key financial metrics the company uses in assessing its own operating performance and making operating decisions.The company’s non-GAAP financial measures are not prepared under any comprehensive set of accounting rules or principles; do not reflect all of the amounts associated with the company's results of operations as determined in accordance with GAAP; and have no standardized meaning prescribed by GAAP. In addition, from time to time in the future there may be other items that the company may exclude for purposes of its non-GAAP financial measures; and the company has ceased and may in the future cease to exclude items that it has historically excluded for purposes of its non-GAAP adjusted measures. Likewise, the company may determine to modify the nature of its adjustments to arrive at its non-GAAP financial measures. In this regard, the company modified the calculation of its non-GAAP income tax provision commencing in the second quarter of 2016 and accordingly, the income tax effect of the adjustments between GAAP reported and non-GAAP adjusted results takes into account the tax treatment and related tax rate(s) that apply to each adjustment in the applicable tax jurisdiction(s). For purposes of comparability, the non-GAAP income tax provision and the corresponding income tax adjustment to arrive at non-GAAP adjusted net income attributable to Jazz Pharmaceuticals plc (and the related per share measures) for each of the other historical periods are presented on the same basis. In addition, because of the non-standardized definitions of the company’s non-GAAP financial measures, the non-GAAP financial measures as used by Jazz Pharmaceuticals in the tables have limits in their usefulness to investors and may be calculated differently from, and therefore may not be directly comparable to, similarly titled measures used by other companies.