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8-K - FORM 8-K - Jazz Pharmaceuticals plcd421001d8k.htm
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EX-99.1 - PRESS RELEASE - Jazz Pharmaceuticals plcd421001dex991.htm

Exhibit 99.2

JAZZ PHARMACEUTICALS PUBLIC LIMITED COMPANY

UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS

On October 15, 2012, Jazz Pharmaceuticals Public Limited Company completed the sale of certain assets relating to its women’s health business, which includes six products (the “Women’s Health Assets”), to Meda Pharmaceuticals Inc. and Meda Pharma, Sàrl (collectively, “Meda”) for cash consideration of $95 million, plus an additional amount for certain purchased inventory transferred to Meda as of the closing of the sale of the Women’s Health Assets (such sale, the “Disposition”). The products included in the Women’s Health Assets sold to Meda were Elestrin® (estradiol gel), Gastrocrom® (cromolyn sodium, USP), Natelle® One (prenatal vitamin), AVC™ Cream (sulfanilamide), Gesticare® DHA (prenatal multi-vitamin) and Urelle® (urinary antiseptic).

On January 18, 2012, the businesses of Jazz Pharmaceuticals, Inc. (“JPI”) and Azur Pharma Public Limited Company (“Azur”) were combined in a merger transaction (the “Azur Merger”). As part of the Azur Merger, a wholly-owned subsidiary of Azur merged with and into JPI, with JPI surviving the Azur Merger as a wholly-owned subsidiary of Jazz Pharmaceuticals Public Limited Company. Prior to the Azur Merger, Azur changed its name to Jazz Pharmaceuticals Public Limited Company. The Azur Merger was accounted for as a reverse acquisition under the acquisition method of accounting for business combinations, with JPI treated as the acquiring company in the Azur Merger for accounting purposes. All references herein to “Azur” refer to Jazz Pharmaceuticals Public Limited Company prior to the completion of the Azur Merger, and all references herein to “Jazz” or the “Company” refer to Jazz Pharmaceuticals Public Limited Company as of and following the completion of the Azur Merger. Upon the consummation of the Azur Merger, the historical financial statements of JPI became the Company’s historical financial statements. Accordingly, all references herein to the historical financial statements of the Company for periods prior to the Azur Merger refer to the historical financial statements of JPI. For financial statement reporting purposes, the Women’s Health Assets, which were owned by Azur prior to the Azur Merger, were acquired by the Company in the Azur Merger.

On June 12, 2012, the Company completed the acquisition of EUSA Pharma Inc. (now known as Jazz Pharmaceuticals (EUSA Pharma) Inc.) (“EUSA”) in connection with which an indirect wholly-owned subsidiary of the Company merged with and into EUSA, with EUSA continuing as the surviving corporation and as an indirect wholly-owned subsidiary of the Company (the “EUSA Acquisition” and together with the Azur Merger, the “Mergers”).

The unaudited pro forma condensed combined balance sheet at June 30, 2012 gives effect to the Disposition as if it had occurred on June 30, 2012. As of June 30, 2012, the acquired Azur and EUSA businesses had been consolidated with the Company for balance sheet purposes.

The unaudited pro forma condensed combined statements of operations for each of the year ended December 31, 2011 and the six months ended June 30, 2012 are presented as if the Mergers and the Disposition (collectively, the “Transactions”) were all consummated on January 1, 2011. The unaudited pro forma condensed combined financial statements presented herein are based on the historical financial statements of Jazz, Azur and EUSA after giving effect to the Mergers (using the acquisition method of accounting) and to the Disposition by applying the assumptions and adjustments described in the accompanying notes. The unaudited pro forma condensed combined statement of operations for the six months ended June 30, 2012 combines the Company’s unaudited consolidated statement of operations for the six months ended June 30, 2012 with Azur’s unaudited consolidated statement of operations from January 1, 2012 through the effective time of the Azur Merger on January 18, 2012 and EUSA’s unaudited consolidated statement of operations from January 1, 2012 through the effective time of the EUSA Acquisition on June 12, 2012. Operations of the acquired Azur and EUSA businesses were reflected in the operating results of the Company after January 18, 2012 and June 12, 2012, respectively.

The Jazz consolidated balance sheet and statement of operations information as of and for the six months ended June 30, 2012 was derived from its unaudited condensed consolidated financial statements included in its Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2012 (the “Jazz 10-Q”).


The Jazz statement of operations information for the year ended December 31, 2011 was derived from its audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2011, filed by the Company with the SEC on behalf of and as successor to JPI (Commission File No. 001-33500) (the “Jazz 10-K”).

The Azur statement of operations information for the year ended December 31, 2011 was derived from its audited consolidated financial statements included in the separate Annual Report on Form 10-K for the year ended December 31, 2011 filed by the Company with the SEC (Commission File No. 333-177528) (the “Azur 10-K”).

The EUSA statement of operations information for the year ended December 31, 2011 was derived from its audited consolidated financial statements for the year ended December 31, 2011 included in Exhibit 99.1 to a Current Report on Form 8-K/A filed by the Company with the SEC on August 10, 2012 (the “EUSA 8-K”).

Certain information and notes normally included in consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States have been omitted pursuant to the rules and regulations of the Securities and Exchange Commission governing pro forma information. The unaudited pro forma condensed combined financial statements do not give effect to the potential impact of current financial conditions, regulatory matters, operating efficiencies or other savings or expenses, including future integration costs, that may be associated with the Transactions. The unaudited pro forma condensed combined financial information is provided for illustrative purposes only, in accordance with the adjustments and estimates set forth below, and does not purport to represent the results of operations that actually would have been realized had JPI, Azur and EUSA been a combined company during the specified periods and the Transactions had occurred on the respective dates assumed, nor is it necessarily indicative of the Company’s future operating results. However, the pro forma adjustments reflected in the accompanying unaudited pro forma condensed combined financial statements reflect estimates and assumptions that the Company’s management believes to be reasonable.

The unaudited pro forma condensed combined financial statements, including the notes thereto, should be read in conjunction with the historical audited consolidated financial statements of Jazz for the year ended December 31, 2011 included in the Jazz 10-K; the historical unaudited consolidated financial statements of Jazz as of and for the six months ended June 30, 2012 included in the Jazz 10-Q; the historical audited consolidated financial statements of Azur for the year ended December 31, 2011 included in the Azur 10-K; and the historical audited consolidated financial statements of EUSA for the year ended December 31, 2011 included in Exhibit 99.1 to the EUSA 8-K.


Unaudited Pro Forma Condensed Combined Balance Sheet

As of June 30, 2012

(in thousands)

 

     Historical Jazz     Pro Forma
Adjustments for
the Disposition
         Pro Forma As
Adjusted for the
Disposition
 

ASSETS

         

Current assets:

         

Cash and cash equivalents

   $ 154,543      $ 97,584      a    $ 252,127   

Accounts receivable, net

     78,130        —             78,130   

Inventories

     48,355        (4,861   b      43,494   

Prepaid expenses

     5,906        (51   b      5,855   

Other current assets

     13,508        —             13,508   
  

 

 

   

 

 

      

 

 

 

Total current assets

     300,442        92,672           393,114   

Property and equipment, net

     4,631        —             4,631   

Intangible assets, net

     927,409        (43,438   b      883,971   

Goodwill

     446,236        (12,916   c      433,320   

Other long-term assets

     19,226        —             19,226   
  

 

 

   

 

 

      

 

 

 

Total assets

   $ 1,697,944      $ 36,318         $ 1,734,262   
  

 

 

   

 

 

      

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

         

Current liabilities:

         

Accounts payable

   $ 34,505      $ —           $ 34,505   

Accrued liabilities

     125,080        (195   b      128,188   
       3,303      d   

Current portion of long-term debt

     23,750        —             23,750   

Purchased product rights liability

     6,972        —             6,972   

Deferred revenue

     2,011        —             2,011   
  

 

 

   

 

 

      

 

 

 

Total current liabilities

     192,318        3,108           195,426   

Deferred revenue, non-current

     7,356        —             7,356   

Long-term debt, less current portion

     444,190        —             444,190   

Contingent consideration

     35,300        —             35,300   

Deferred tax liability

     185,706        —             185,706   

Other non-current liabilities

     1,615        —             1,615   
  

 

 

   

 

 

      

 

 

 

Total liabilities

     866,485        3,108           869,593   

Shareholders’ equity:

         

Ordinary shares

     6        —             6   

Non-voting euro deferred shares

     55        —             55   

Capital redemption reserve

     471        —             471   

Additional paid-in capital

     1,126,371        —             1,126,371   

Accumulated other comprehensive loss

     (388     —             (388

Accumulated deficit

     (295,056     33,210      b      (261,846
  

 

 

   

 

 

      

 

 

 

Total shareholders’ equity

     831,459        33,210           864,669   
  

 

 

   

 

 

      

 

 

 

Total liabilities and shareholders’ equity

   $ 1,697,944      $ 36,318         $ 1,734,262   
  

 

 

   

 

 

      

 

 

 

See accompanying notes to the unaudited pro forma condensed combined financial statements.


Unaudited Pro Forma Condensed Combined Statement of Operations

For the six months ended June 30, 2012

(in thousands, except per share amounts)

 

    Historical
Jazz
    Historical
Azur from
January 1,
2012 to
January 18,
2012
    Historical
EUSA from
January 1,
2012 to June  12,
2012
    Pro Forma
Adjustments
for the
Mergers
        Pro Forma
Combined
    Pro Forma
Adjustments
for the
Disposition
        Pro Forma
Combined As
Adjusted for the
Disposition
 

Revenues:

                 

Product sales, net

  $ 235,646      $ 881      $ 82,832      $ (1,226   g   $ 318,133      $ (11,332   e   $ 306,801   

Royalties and contract revenues

    2,307        —          —          (159   f     2,907        —            2,907   
          759      g        
 

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

     

 

 

 

Total revenues

    237,953        881        82,832        (626       321,040        (11,332       309,708   

Operating expenses:

                 

Cost of product sales (excluding amortization of acquired developed technology)

    26,128        446        28,359        (6,380   h     48,553        (4,226   e     44,327   

Selling, general and administrative

    107,637        16,809        49,852        4,147      g     111,775        (6,427   e     105,298   
          (9,677   i       (50   k  
          (33,135   k        
          (23,858   l        

Research and development

    6,280        161        12,208        (4,445   g     14,204        —            14,204   

Intangible asset amortization

    29,264        558        5,011        (169   g     44,902        (5,563   e     39,339   
          (5,400   m        
          (25,790   n        
          41,428      o        
 

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

     

 

 

 

Total operating expenses

    169,309        17,974        95,430        (63,279       219,434        (16,266       203,168   
 

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

     

 

 

 

Income (loss) from operations

    68,644        (17,093     (12,598     62,653          101,606        4,934          106,540   

Interest expense, net

    (1,450     (13     (13,342     13,421      p     (13,708     —            (13,708
          (12,324   q        

Other income (expense)

    (258     —          2,562        —            2,304        —            2,304   

Increase in value of warrant liability

    —          —          258        (258   r     —          —            —     
 

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

     

 

 

 

Income (loss) before provision for income tax expense

    66,936        (17,106     (23,120     63,492          90,202        4,934          95,136   

Provision (benefit) for income tax expense

    12,110        15        3,369        (3,818   s     11,676        —            11,676   
 

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

     

 

 

 

Net income (loss)

  $ 54,826      $ (17,121   $ (26,489   $ 67,310        $ 78,526      $ 4,934        $ 83,460   
 

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

     

 

 

 

Net income (loss) per share:

                 

Basic

  $ 0.99      $ (0.41         $ 1.39          $ 1.47   
 

 

 

   

 

 

         

 

 

       

 

 

 

Diluted

  $ 0.92      $ (0.41         $ 1.30          $ 1.38   
 

 

 

   

 

 

         

 

 

       

 

 

 

Weighted-average common shares used in computing net income (loss) per share:

                 

Basic

    55,437        41,667              56,592            56,592   
 

 

 

   

 

 

         

 

 

       

 

 

 

Diluted

    59,319        41,667              60,473            60,473   
 

 

 

   

 

 

         

 

 

       

 

 

 

See accompanying notes to the unaudited pro forma condensed combined financial statements.


Unaudited Pro Forma Condensed Combined Statement of Operations

For the year ended December 31, 2011

(in thousands, except per share amounts)

 

     Historical
Jazz
    Historical
Azur
    Historical
EUSA
    Pro Forma
Adjustments
for the Mergers
         Pro Forma
Combined
    Pro Forma
Adjustments
for the
Disposition
         Pro Forma
Combined As
Adjusted for
the Disposition
 

Revenues:

                    

Product sales, net

   $ 266,518      $ 94,243      $ 95,206      $ (2,865   g    $ 453,102      $ (30,356   e    $ 422,746   

Royalties and contract revenues

     5,759        —          —          (365   f      7,029        —             7,029   
           1,635      g          
  

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

      

 

 

 

Total revenues

     272,277        94,243        95,206        (1,595        460,131        (30,356        429,775   

Operating expenses:

                    

Cost of product sales (excluding amortization of acquired developed technology)

     13,942        15,172        40,716        —             69,830        (6,014   e      63,816   

Selling, general and administrative

     108,936        47,472        33,835        8,487      g      184,459        (11,189   e      173,270   
           (76   j          
           (14,195   k          

Research and development

     14,120        6,789        32,780        (7,033   g      46,656        —             46,656   

Intangible asset amortization

     7,448        11,946        11,374        (364   g      94,977        (11,125   e      83,852   
           (22,956   m          
           87,529      o          
  

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

      

 

 

 

Total operating expenses

     144,446        81,379        118,705        51,392           395,922        (28,328        367,594   
  

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

      

 

 

 

Income (loss) from operations

     127,831        12,864        (23,499     (52,987        64,209        (2,028        62,181   

Interest expense, net

     (1,675     (468     (11,455     11,455      p      (30,916     —             (30,916
           (28,773   q          

Other income

     75        9,467        33        2,320      g      2,465        —             2,465   
           (9,430   r          

Loss on extinguishment of debt

     (1,247     —          —          —             (1,247     —             (1,247

Increase in value of warrant liability

     —          —          (173     173      r      —          —             —     
  

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

      

 

 

 

Income (loss) before provision for income tax expense

     124,984        21,863        (35,094     (77,242        34,511        (2,028        32,483   

Provision (benefit) for income tax expense

     —          1,251        (5,029     (12,348   s      (16,126     —             (16,126
  

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

      

 

 

 

Net income (loss)

   $ 124,984      $ 20,612      $ (30,065   $ (64,894      $ 50,637      $ (2,028      $ 48,609   
  

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

      

 

 

 

Net income per share:

                    

Basic

   $ 3.01      $ 0.49             $ 0.94           $ 0.90   
  

 

 

   

 

 

          

 

 

        

 

 

 

Diluted

   $ 2.67      $ 0.49             $ 0.86           $ 0.82   
  

 

 

   

 

 

          

 

 

        

 

 

 

Weighted-average common shares used in computing net income per share:

                    

Basic

     41,499        41,667               53,859             53,859   
  

 

 

   

 

 

          

 

 

        

 

 

 

Diluted

     46,798        41,667               59,158             59,158   
  

 

 

   

 

 

          

 

 

        

 

 

 

See accompanying notes to the unaudited pro forma condensed combined financial statements.


NOTES TO UNAUDITED PRO FORMA CONDENSED

COMBINED FINANCIAL STATEMENTS

1. Basis of Presentation

On October 15, 2012, Jazz Pharmaceuticals Public Limited Company completed the sale of certain assets relating to its women’s health business, which includes six products (the “Women’s Health Assets”), to Meda Pharmaceuticals Inc. and Meda Pharma, Sàrl (collectively, “Meda”) for cash consideration of $95 million, plus an additional amount for certain purchased inventory transferred to Meda as of the closing of the sale of the Women’s Health Assets (such sale, the “Disposition”). The products included in the Women’s Health Assets sold to Meda were Elestrin® (estradiol gel), Gastrocrom® (cromolyn sodium, USP), Natelle® One (prenatal vitamin), AVC™ Cream (sulfanilamide), Gesticare® DHA (prenatal multi-vitamin) and Urelle® (urinary antiseptic).

On January 18, 2012, the businesses of Jazz Pharmaceuticals, Inc. (“JPI”) and Azur Pharma Public Limited Company (“Azur”) were combined in a merger transaction (the “Azur Merger”). As part of the Azur Merger, a wholly-owned subsidiary of Azur merged with and into JPI, with JPI surviving the Azur Merger as a wholly-owned subsidiary of Jazz Pharmaceuticals Public Limited Company. Prior to the Azur Merger, Azur changed its name to Jazz Pharmaceuticals Public Limited Company. The Azur Merger was accounted for as a reverse acquisition under the acquisition method of accounting for business combinations, with JPI treated as the acquiring company in the Azur Merger for accounting purposes. All references herein to “Azur” refer to Jazz Pharmaceuticals Public Limited Company prior to the completion of the Azur Merger, and all references herein to “Jazz” or the “Company” refer to Jazz Pharmaceuticals Public Limited Company as of and following the completion of the Azur Merger. Upon the consummation of the Azur Merger, the historical financial statements of JPI became the Company’s historical financial statements. Accordingly, all references herein to the historical financial statements of the Company for periods prior to the Azur Merger refer to the historical financial statements of JPI. For financial statement reporting purposes, the Women’s Health Assets, which were owned by Azur prior to the Azur Merger, were acquired by the Company in the Azur Merger.

On June 12, 2012, the Company completed the acquisition of EUSA Pharma Inc. (now known as Jazz Pharmaceuticals (EUSA Pharma) Inc.) (“EUSA”) in connection with which an indirect wholly-owned subsidiary of the Company merged with and into EUSA, with EUSA continuing as the surviving corporation and as an indirect wholly-owned subsidiary of the Company (the “EUSA Acquisition” and together with the Azur Merger, the “Mergers”).

The unaudited pro forma condensed combined balance sheet at June 30, 2012 gives effect to the Disposition as if it had occurred on June 30, 2012. As of June 30, 2012, the acquired Azur and EUSA businesses had been consolidated with the Company for balance sheet purposes.

The unaudited pro forma condensed combined statements of operations for each of the year ended December 31, 2011 and the six months ended June 30, 2012 are presented as if the Mergers and the Disposition (collectively, the “Transactions”) were all consummated on January 1, 2011. The unaudited pro forma condensed combined financial statements presented herein are based on the historical financial statements of Jazz, Azur and EUSA after giving effect to the Mergers (using the acquisition method of accounting) and to the Disposition by applying the assumptions and adjustments described in these notes. The unaudited pro forma condensed combined statement of operations for the six months ended June 30, 2012 combines the Company’s unaudited consolidated statement of operations for the six months ended June 30, 2012 with Azur’s unaudited consolidated statement of operations from January 1, 2012 through the effective time of the Azur Merger on January 18, 2012 and EUSA’s unaudited consolidated statement of operations from January 1, 2012 through the effective time of the EUSA Acquisition on June 12, 2012. Operations of the acquired Azur and EUSA businesses were reflected in the operating results of the Company after January 18, 2012 and June 12, 2012, respectively.

The Mergers

Under the acquisition method of accounting, the assets and liabilities of Azur and EUSA were recorded at their respective fair values and added to those of JPI including an amount for goodwill representing the difference between the acquisition consideration and the fair value of the identifiable net


assets. For additional information regarding the Azur Merger and the EUSA Acquisition, see the Current Report on Form 8-K filed by the Company with the SEC on February 28, 2012 and the Current Report on Form 8-K/A filed by the Company with the SEC on August 10, 2012, respectively.

2. Pro Forma Adjustments

Pro forma adjustments are necessary to reflect the impact on the balance sheet as if the Disposition had been consummated as of June 30, 2012 and to reflect the impact on the statement of operations as if each of the Transactions had been consummated on January 1, 2011. The pro forma adjustments included in the unaudited pro forma condensed combined financial statements are as follows:

 

  a. To reflect the cash received from the Disposition.

 

  b. To reflect the impact of the Disposition on other balance sheet accounts as of June 30, 2012.

 

  c. To allocate goodwill related to the Disposition based upon the estimated fair value of the Women’s Health Assets relative to the Company’s fair value.

 

  d. To accrue for estimated nonrecurring transaction costs related to the Disposition.

 

  e. To reflect the impact on operating results as if the Disposition had occurred on January 1, 2011.

 

  f. To reverse deferred revenue recognized after the deemed completion date for the Mergers of January 1, 2011.

 

  g. To adjust EUSA’s balances to conform to Jazz’s presentation.

 

  h. To remove the amount of fair value inventory step-up expense recognized in the Jazz historical statement of operations for the six months ended June 30, 2012 related to the Mergers since it does not have continuing impact on the operations of the combined business.

 

  i. To remove the amount of bonus and payroll taxes resulting from the EUSA Acquisition since it does not have continuing impact on the operations of the combined business.

 

  j. To record amortization of an above market lease obligation on a straight-line basis over the remaining lease term.

 

  k. To eliminate transaction costs related to the Transactions recorded in the statements of operations for the year ended December 31, 2011 and the six months ended June 30, 2012.

 

  l. To remove stock compensation expense associated with the acceleration of Azur and EUSA stock options in connection with the Mergers.

 

  m. To eliminate the historical intangible asset amortization expense of Azur and EUSA for the year ended December 31, 2011 and the six months ended June 30, 2012.

 

  n. To remove post-acquisition amortization expense of identifiable intangible assets related to the Mergers.

 

  o. To record amortization expense for identifiable intangible assets as if the Mergers had occurred on January 1, 2011.

 

  p. To eliminate interest expense associated with EUSA’s debt for the year ended December 31, 2011 and the six months ended June 30, 2012.

 

  q. To record interest expense associated with new debt borrowings by Jazz as if the EUSA Acquisition had occurred on January 1, 2011.

Jazz incurred new debt in June 2012 to partially fund the EUSA Acquisition which is comprised of a six-year term loan facility of $475.0 million. Borrowings under the term loan bear interest, at Jazz’s option, at a rate equal to either the LIBOR rate, plus an applicable margin of 4.25% per annum (subject to a 1.0% LIBOR floor), or the prime lending rate, plus an applicable margin equal to 3.25% per annum (subject to a 2.0% prime rate floor). Currently LIBOR rates are below the floor of 1% and therefore an increase in interest rates would only impact Jazz’s net interest expense to the extent it exceeds the floor of 1%. Based on variable rate debt levels of $475.0 million as of June 30, 2012, a 1/8 of a percent (0.125%) change in interest rates, above the LIBOR floor, would impact Jazz’s annual pro forma interest expense by $0.6 million.


  r. To eliminate the fair value adjustment related to liability classified share based instruments.

 

  s. To adjust the income tax provision as if the Mergers had occurred on January 1, 2011.

3. Non-recurring Transaction Costs

Jazz, EUSA and Azur have incurred and Jazz will continue to incur certain non-recurring transaction expenses. Non-recurring transaction expenses incurred were $14.2 million and $33.1 million during the year ended December 31, 2011 and during the six months ended June 30, 2012, respectively, and are reflected as an adjustment to reduce selling, general and administrative expenses in the pro forma condensed combined statements of operations as they are non-recurring and directly attributable to the Mergers.

Non-recurring transaction expenses related to the Disposition are expected to be approximately $3.3 million, of which less than $0.1 million had been incurred by June 30, 2012. These Disposition transaction expenses are not reflected in the pro forma condensed combined statement of operations for the six months ended June 30, 2012 as they are not expected to have a continuing impact on operations. The pro forma condensed combined balance sheet as of June 30, 2012 includes an adjustment of $3.3 million to accrued liabilities for transaction expenses expected to be incurred by Jazz subsequent to June 30, 2012 (see Note 2, Pro Forma Adjustments above) related to the Disposition.