Endo Health Solutions To Record Non-Cash Charges In 2013 - Quick Facts

(RTTNews) - Endo Health Solutions (ENDP) announced the completion of its annual goodwill and in-process research and development or IPR&D impairment analysis for 2013 and plans to record a pre-tax, non-cash asset impairment charge of about $495 million in fiscal 2013, mainly related to goodwill attributable to the firm's acquisition of American Medical Systems.

In the 2013 fourth quarter, the company also recorded a pre-tax, non-cash charge of nearly $316 million, to increase its product liability reserve to around $520 million for all known, pending and estimated future claims primarily related to vaginal mesh cases. The change in the accrual for product liability claims is chiefly associated with the company's ongoing evaluation of American Medical Systems' vaginal mesh litigation, including the inherent uncertainty of this litigation and potential settlement costs.

The non-cash charges would not affect Endo Health's 2013 adjusted financial results; however, 2013 GAAP earnings per share are currently expected to be materially below the prior announced guidance of $0.95 - $1.10.