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Life Technologies Announces Fourth Quarter and Fiscal 2012 Results

      Life Technologies Announces Fourth Quarter and Fiscal 2012 Results

Fourth quarter revenue increased 3% to $999 million, or 4.5% excluding
currency

Fourth quarter GAAP earnings per share (EPS) of $0.63, or $1.11 on a Non-GAAP
basis, an increase of 6%

Free Cash Flow of $662 million in 2012

2013 outlook of revenue growth of 3 to 5% over 2012; Non-GAAP EPS guidance of
$4.30 to $4.45

PR Newswire

CARLSBAD, Calif., Feb. 4, 2013

CARLSBAD, Calif., Feb. 4, 2013 /PRNewswire/ -- Life Technologies Corporation
(NASDAQ: LIFE) today announced results for its fourth quarter for the year
ended Dec. 31, 2012. Non-GAAP revenue for the fourth quarter was $999 million,
an increase of 3 percent over the $970 million reported for the fourth quarter
of 2011. Excluding the impact of currency, revenue growth for the quarter was
4.5 percent compared to the same period of the prior year. Full year 2012
revenue was $3.8 billion, an increase of 2 percent over 2011. Excluding
currency, revenue growth was also about 2.2 percent over the prior year.

(Logo: http://photos.prnewswire.com/prnh/20110216/MM49339LOGO)

"We started the year with a promise to our shareholders to grow our underlying
business, invest in growth markets and regions, deliver on a balanced capital
deployment strategy and introduce innovative new products to serve our
customers even better. I am extremely pleased that our team remained focused
and delivered against this promise, growing revenue and earnings for the
thirteenth year in a row," said Gregory T. Lucier, chairman and chief
executive officer of Life Technologies.

"We finished the year strong with fourth quarter revenue growth ahead of our
expectations at 4.5 percent driven by strength in our Ion Torrent business,
which recorded its highest revenue quarter ever. We also achieved a solid
return to growth in our Research Consumables business and
continuedstrongperformancein our Bioproduction business. We expect the
strength we saw across all regions and end markets as we exited 2012,
including continued double digit growth in emerging markets, to provide
momentum in 2013."

"With $662 million in free cash flow, we were able to return a significant
amount of capital to shareholders. We ended the year having repurchased $635
million, or 13.8 million shares in total, well above our 50 percent target.
Additionally, we have already repurchased $105 million, or 2 million shares,
year-to-date in 2013."

"Looking ahead to 2013, we expect another significant increase in our Ion
Torrent business sales for the third consecutive year and expansion in our
applied and emerging markets to drive revenue growth of 3 to 5 percent over
2012 results of $3.8 billion. If sequestration is implemented, we estimate it
would reduce our revenue by approximately 1 percent and we would expect to be
at the low end of our guidance range, at 3 percent growth for 2013. We are
guiding to non-GAAP EPS in a range of $4.30 to $4.45, which would result in 8
to 12 percent growth over 2012 results."

Life Technologies reported results compared to the quarter and fiscal year
ended Dec. 31, 2011. Results are non-GAAP unless indicated otherwise. A full
reconciliation of the non-GAAP measures to GAAP can be found in the tables of
today's press release.

Analysis of Fourth Quarter and Fiscal 2012 Results

  oFourth quarterrevenue increased 3 percent over the prior year, or 4.5
    percent excluding the impact of currency. Full year 2012 revenue increased
    2 percent to $3.8 billion. Revenue growth for the quarter and the full
    year were driven by strong sales from the Ion Torrent business and growth
    in the company's Research Consumables and Bioproduction businesses,
    partially offset by expected declines in SOLiD^® sales and qPCR royalty
    revenue.
  oGross margin in the fourth quarterwas 64.6 percent, a 20 basis point
    increase compared to the same period of the prior year primarily driven by
    manufacturing productivity, partially offset by a higher mix of instrument
    sales and unfavorable currency rates. Full year gross margin was 65.6
    percent, an increase of 40 basis points, primarily due to improved product
    mix and higher realized price, offset by the decrease in qPCR royalties
    and unfavorable currency rates.
  oOperating margin was 29.9 percent in the fourth quarter, approximately 70
    basis points lower than the same period of the prior year. Operating
    margin was primarily impacted by unfavorable currency rates and expenses
    related to our acquisitions in molecular diagnostics. Full year operating
    margin increased 20 basis points to 29.2 percent. The increase was driven
    primarily by an increase in gross margins and improvement in currency,
    partially offset by higher expenses related to our acquisitions in
    molecular diagnostics.
  oThe tax rate was 27.2 percent for the fourth quarter and 27.6 percent for
    the full year.
  oFourth quarter EPS increased 6 percent to $1.11. Full year EPS increased 7
    percent to $3.98. Fourth quarter and the full year were negatively
    impacted by $(0.03) due to the timing of the 2012 federal R&D tax credit
    benefit being moved from the fourth quarter of 2012 to 2013. The company's
    fourth quarter and full year 2012 guidance had assumed the reinstatement
    and benefit of the federal R&D tax credit by the end of 2012.
  oDiluted weighted shares outstandingwere175.8 million in the fourth
    quarter, a decrease of 8.8 million shares over the prior year. The
    decrease was a result of the continuation of the company's share
    repurchase program, partially offset by shares issued for employee stock
    plans. The company repurchased $100 million or 2.0 million shares in the
    fourth quarter.
  oCash flow from operating activities for the fourth quarter was $221
    million. Fourth quarter capital expenditures were $48 million, resulting
    in free cash flow of $173 million. The company ended the quarter with $276
    million in cash and short-term investments.

Business Group Highlights

  oResearch Consumables revenue was $409 million in the fourth quarter, an
    increase of 2 percent compared to the prior year. Excluding the impact
    from currency, revenue for the business group grew 4 percent. Full year
    revenue increased 1 percent to $1.6 billion, or 2 percent excluding the
    impact from currency. Growth for the quarter and full year was mainly
    driven by strong performance in our cell culture, sample prep and benchtop
    products.
  oGenetic Analysis revenue was $401 million in the fourth quarter, an
    increase of 2 percent over the same period last year. Excluding the impact
    from currency, revenue increased 4 percent. Full year revenue was flat at
    approximately $1.5 billion, or up 1 percent excluding the impact from
    currency. Growth for the quarter and the full year was primarily driven by
    a substantial increase in our Ion Torrent business, including sales of the
    Ion PGM^™ instruments and Ion Proton^™ System, partially offset by an
    expected decline in SOLiD instrument sales and in qPCR royalty revenue.
  oApplied Sciences revenue was $190 million in the fourth quarter, an
    increase of 8 percent over the same period last year. Excluding the impact
    from currency, revenue increased 10 percent. Full year revenue increased 7
    percent to $719 million, or 8 percent excluding the impact from currency.
    Growth for the quarter was primarily driven by increased sales in
    Bioproduction and Forensics products. Growth for the full year was
    primarily driven by increased sales in Bioproduction.
  oRegional revenue growth rates excluding currency for the fourth quarter
    compared to the same quarter of the prior year were as follows: the
    Americas were flat, Europe grew 5 percent, Asia Pacific grew 18 percent
    and Japan grew 6 percent. Full year growth rates excluding currency were
    as follows: the Americas declined 1 percent, Europe grew 2 percent, Asia
    Pacific grew 13 percent and Japan grew 3 percent.

Fiscal Year 2013 Outlook
Subject to the risk factors detailed in the Safe Harbor Statement section of
this release, the company provided its expectations for fiscal year 2013
financial performance. The company expects revenue growth, excluding currency,
of 3 to 5 percent over 2012 revenues of $3.8 billion. If sequestration is
implemented, it would reduce revenue by approximately 1 percent and the
company would expect be at the low end of the guidance range, at 3 percent
growth for 2013. The company expects non-GAAP EPS to be in a range of $4.30 to
$4.45. At December month end rates, currency negatively impacts revenue by
$(2) million and non-GAAP EPS by about $(0.01). The company will provide
further detail on its business outlook during the webcast today.

Webcast Details
The company will discuss its financial and business results as well as its
business outlook on a webcast at4:30 p.m. ET today.This webcast will contain
forward-looking information that includes a discussion of "non-GAAP financial
measures" as that term is defined in Regulation G.For actual results, the
most directly comparable GAAP financial measures and information reconciling
these non-GAAP financial measures to the company's financial results
determined in accordance with GAAP, as well as other material financial and
statistical information to be discussed on the webcast will be posted on the
company's investor relations website at https://ir.lifetechnologies.com. The
webcast can be accessed through the investor relations page of the company's
website at https://ir.lifetechnologies.com/events.cfm. A replay of the webcast
will be available on the company's website through Monday, Feb. 25.

About Life Technologies
Life Technologies Corporation(NASDAQ:LIFE) is a global biotechnology company
with customers in more than 160 countries using its innovative solutions to
solve some of today's most difficult scientific challenges. Quality and
innovation are accessible to every lab with its reliable and easy-to-use
solutions spanning the biological spectrum, with more than 50,000 products for
agricultural biotechnology, translational research, molecular medicine and
diagnostics, stem cell-based therapies, forensics, food safety and animal
health. Its systems, reagents and consumables represent some of the most cited
brands in scientific research including: Ion Torrent™, Applied
Biosystems®,Invitrogen™, Gibco®, Ambion®, Molecular Probes® and Novex®.Life
Technologiesemploys approximately 10,400 people and upholds its ongoing
commitment to innovation with more than 4,000 patents and exclusive licenses.
LIFE had sales of$3.7 billionin 2011. Visit us at our
website:http://www.lifetechnologies.com.

Safe Harbor Statement
Certain statements contained in this press release are "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995, and Life Technologies intends that such forward-looking statements be
subject to the safe harbor created thereby.Forward-looking statements may be
identified by words such as "expects," "anticipates," "intends," "plans,"
"believes," "seeks," "estimates," "will," or words of similar meaning and
include, but are not limited to, statements about the expected future business
and financial performance of the company. Such forward-looking statements
include, but are not limited to, statements relating to financial projections,
including revenue and pro forma EPS projections; success of acquired
businesses, including cost and revenue synergies; development and increased
flow of new products; leveraging technology and personnel; advanced
opportunities and efficiencies; opportunities for growth; expectations of
prospective new standards, new delivery platforms, and new selling
specialization and effectiveness; plans and prospects for the company; and
corporate strategy and performance.A number of the matters discussed in this
press release and presentation that are not historical or current facts deal
with potential future circumstances and developments, including future
research and development plans. The discussion of such matters is qualified by
the inherent risks and uncertainties surrounding future expectations generally
and other factors that could cause actual results to differ materiallyfrom
future results expressed or implied by such forward-looking statements. Such
risks and uncertainties include, but are not limited to: volatility of the
financial markets; and the risks that are described from time to time in Life
Technologies' reports filed with the SEC.This press release and presentation
speaks only as of its date, and the company disclaims any duty to update the
information herein.

All products referenced are for Research Use Only and not intended for use in
diagnostic procedures, unless otherwise noted.

Non-GAAP Measurements
This presentation and discussion includes certain financial information which
constitute "non-GAAP financial measures" as defined by the SEC. The GAAP
measures which are most directly comparable to these measures, as well as a
reconciliation of these measures with the most directly comparable GAAP
measures, can be found at on the Investor Relations portion of the company's
website at www.lifetechnologies.com.

Investor and Financial Contact

Carol Cox
Investor Relations
(760) 603-7208
ir@lifetech.com



LIFE TECHNOLOGIES CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
                                              For the three    For the three
                                              months           months
(in thousands, except per share data)         ended December   ended December
                                              31, 2012         31, 2011
(unaudited)
Revenues                                      $         $       
                                                998,904      1,010,445
Cost of revenues                              368,665          401,127
Purchased intangibles amortization            72,564           82,201
                  Gross profit                557,675          527,117
Gross margin                                  55.8%            52.2%
Operating expenses:
     Selling, general and administrative      264,604          249,535
     Research and development                 83,667           90,201
     Business consolidation costs             38,467           18,856
              Total operating expenses        386,738          358,592
                  Operating income            170,937          168,525
Operating margin                              17.1%            16.7%
     Interest income                          686              972
     Interest expense                         (29,649)         (38,162)
     Other expense, net                       (800)            (2,933)
              Total other expense, net        (29,763)         (40,123)
Income from operations before provision       141,174          128,402
forincome taxes
Income tax provision                          (31,269)         (35,334)
                  Net income                  109,905          93,068
                  Net loss attributable to    101              -
                  non-controlling interests
                  Net income attributable to  $         $       
                  controlling interest         110,006          93,068
Effective tax rate                           22.1%            27.5%
Add back interest expense for subordinated    -                584
debt, net of tax
Numerator for diluted earnings per share      $         $       
                                               110,006         93,652
Earnings per common share:
     Basic earnings per share attributable to $         $       
     controlling interest                         0.64        0.52
     Diluted earnings per share attributable  $         $       
     to controlling interest                      0.63        0.51
Weighted average shares used in per share
calculation:
     Basic                                    172,238          178,304
     Diluted                                  175,783          184,544



LIFE TECHNOLOGIES CORPORATION
ITEMIZED RECONCILIATION BETWEEN
GAAP AND NON-GAAP NET INCOME
                                            For the three       For the three
                                            months              months
(in thousands, except per share data)       ended December      ended December
                                            31, 2012            31, 2011
(unaudited)
GAAP net income                            $             $      
                                            109,905             93,068
   Non-GAAP revenue adjustments
                   Licensing settlement     -                   (38,800)
                   Purchase accounting      460                 506
                   related adjustments
                   Charges on a             -                   (1,812)
                   discontinued product
   Total Non-GAAP revenue adjustments       460            ^(1) (40,106)
   Non-GAAP cost of revenues and purchased
   intangible adjustments
                   Purchased intangibles    72,564              82,201
                   amortization
                   Purchase accounting      2,914               (590)
                   related adjustments
                   Legal adjustments and    12,397              56,455
                   licensing settlement
   Total Non-GAAP cost of revenues and      87,875         ^(2) 138,066
   purchased intangible adjustments
   Non-GAAP Operating Expense Adjustments:
                   Purchase accounting      869                 1,491
                   related adjustments
                   Business consolidation   38,467              18,856
                   costs
                   Legal adjustments and    -                   9,960
                   licensing settlement
   Total Non-GAAP Operating Expense         39,336         ^(3) 30,307
   Adjustments
   Non-GAAP Other Expense Adjustments:
                   Noncash interest expense -                   6,649
                   charges
   Total Non-GAAP Other Expense Adjustments -                   6,649
   Non-GAAP Income Tax Provision
   Adjustments:
                   Income tax adjustments   (41,813)            (34,880)
   Total Non-GAAP Income Tax Provision      (41,813)       ^(5) (34,880)
   Adjustments
Non-GAAP Net Income                         $             $      
                                            195,763            193,104
   Non-GAAP loss attributable to            101            ^(6) -
   non-controlling interest
Non-GAAP Net Income Attributable to         $             $      
Controlling Interest                        195,864            193,104
Add back of interest expense for            -                   33
subordinated debt, net of tax
Non-GAAP Numerator for diluted earnings per $             $      
share                                       195,864            193,137
Non-GAAP Earnings per common share:
   Basic earnings per share attributable to $             $      
   controlling interest                         1.14            1.08
   Diluted earnings per share attributable  $             $      
   to controlling interest                      1.11            1.05
Weighted average shares used in per share
calculation:
   Basic                                    172,238             178,304
   Diluted                                  175,783             184,544

Summary of Reconciliation between GAAP and
Non-GAAP Net Income
          For the three months ended December 31, 2012, Non-GAAP earnings
          resulted in total revenue of $999.4 million, gross profit of $646.0
          million with gross margin of 64.6%, operating profit of $298.6
          million with operating margin of 29.9%, and an income tax provision
          of $73.1 million with the Non-GAAP effective tax rate of 27.2% with
          the above adjustments.
          For the three months ended December 31, 2011, Non-GAAP earnings
          resulted in total revenue of $970.3 million, gross profit of $625.1
          million with gross margin of 64.4%, operating profit of $296.8
          million with operating margin of 30.6%, and an income tax provision
          of $70.2 million with the Non-GAAP effective tax rate of 26.7% with
          the above adjustments.
Notes
          Add back purchased deferred revenue of $0.5 million for each of the
          three months ended December 31, 2012 and 2011. Adjust for revenue
^(1)      related to credit usage on returns of a discontinued product of $1.8
          million for the three months ended December 31, 2011. Adjust for
          $38.8 million of revenue recognized upon a licensing settlement for
          the three months ended December 31, 2011.
          Add back amortization of purchased intangibles of $72.6 million and
          $82.2 million for the three months ended December 31, 2012 and 2011,
          respectively. Add back amortization of a fair value inventory
          write-up of $1.5 million and charges for contingent consideration
          remeasurement of $1.4 million for the three months ended December
^(2)      31, 2012 and adjust charges for contingent consideration
          remeasurement of $0.6 million for the three months ended December
          31, 2011. Add back $12.4 million and $52.0 million of legal
          adjustments for the three months ended December 31, 2012 and 2011,
          respectively, and add back royalty fees and compensation costs of
          $4.5 million as a result of a licensing settlement for the three
          months ended December 31, 2011.
          Add back depreciation of purchase accounting property, plant, and
          equipment revaluation of $0.9 million and $1.5 million, and business
          consolidation costs including restructuring and integrating acquired
          entities, aligning acquired and existing operations through business
^(3)      transformation activities and costs associated with divesting
          entities of $38.5 million and $18.9 million for the three months
          ended December 31, 2012 and 2011, respectively. Add back $10.0
          million for the compensation cost and asset impairment partially
          offset by recovery of expenses related to the settlement of a
          licensing settlement for the three months ended December 31, 2011.
          Add back charges related to non-cash interest expense for senior
^(4)      convertible debts of $5.1 million and imputed finance charge of $1.5
          million associated with contingent consideration on business
          acquisitions for the three months ended December 31, 2011.
          Non-GAAP tax adjustment due to the exclusion of the aforementioned
          business combination related charges, non cash charges, and one-time
^(5)      costs which are not indicative of the profitability or cash flows of
          the Company's ongoing or future operations. These deductions produce
          a GAAP only tax benefit which is added back for Non-GAAP
          presentation.
          Non-GAAP net loss attributable to non-controlling interest, net of
^(6)      tax benefit, adjusted for noncash charges for purchase accounting
          property, plant, and equipment revaluation.
          The Company reports Non-GAAP results which excludes costs that are
          not indicative of the profitability or cash flows of the Company's
          ongoing or future operations. Such costs are restructuring cost,
          business transformation expenses, amortization and depreciation of
          deferred revenue, intangibles assets, and fixed assets, and
          revaluation charges for inventories, contingent consideration
          liabilities, asset impairments, and in process research and
          development expenses, incurred as a result of business combinations
          as well as the impact from the divestiture and discontinuance of
          product lines. The Company also excludes noncash interest expense
          associated with convertible debt bifurcation and noncash charges
          associated with non-controlling interests. In addition, the Company
          excludes one-time costs including the early repayment of debt and
          the associated impacts, and the impact of certain settlements in
          order to provide a supplemental comparison of the results of
          operations.



LIFE TECHNOLOGIES CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
                                              For the year     For the year
(in thousands, except per share data)         ended December   ended December
                                              31, 2012         31, 2011
(unaudited)
Revenues                                      $         $       
                                               3,798,510       3,775,672
Cost of revenues                              1,372,277        1,356,967
Purchased intangibles amortization            291,756          308,728
                Gross profit                  2,134,477        2,109,977
Gross margin                                  56.2%            55.9%
Operating expenses:
     Selling, general and administrative      1,054,616        1,008,973
     Research and development                 341,892          377,924
     Business consolidation costs             72,732           75,324
             Total operating expenses         1,469,240        1,462,221
                Operating income              665,237          647,756
Operating margin                              17.5%            17.2%
     Interest income                          2,401            3,932
     Interest expense                         (123,915)        (162,073)
     Other expense, net                       (11,898)         (10,913)
             Total other expense, net         (133,412)        (169,054)
Income from operations before provision       531,825          478,702
forincome taxes
Income tax provision                          (101,376)        (100,868)
                Net income                    430,449          377,834
                Net loss attributable to      406              658
                non-controlling interests
                Net income attributable to    $         $       
                controlling interest           430,855         378,492
Effective tax rate                           19.1%            21.1%
Add back interest expense for subordinated    12               1,300
debt, net of tax
Numerator for diluted earnings
per share                                     $         $       
                                               430,867         379,792
Earnings per common share:
     Basic earnings per share attributable to $         $       
     controlling interest                         2.45        2.11
     Diluted earnings per share attributable  $         $       
     to controlling interest                      2.40        2.05
Weighted average shares used in per share
calculation:
     Basic                                    175,831          179,390
     Diluted                                  179,365          185,595



LIFE TECHNOLOGIES CORPORATION
ITEMIZED RECONCILIATION BETWEEN
GAAP AND NON-GAAP NET INCOME
                                            For the year        For the year
(in thousands, except per share data)       ended December      ended December
                                            31, 2012            31, 2011
(unaudited)
GAAP net income                            $             $      
                                            430,449            377,834
   Non-GAAP revenue adjustments
                   Licensing settlement     -                   (38,800)
                   Purchase accounting      1,295               2,881
                   related adjustments
                   Charges on a             (457)               924
                   discontinued product
   Total Non-GAAP revenue adjustments       838            ^(1) (34,995)
   Non-GAAP cost of revenues and purchased
   intangible adjustments
                   Purchased intangibles    291,756             308,728
                   amortization
                   Purchase accounting      2,914               (2,145)
                   related adjustments
                   Charges on a             -                   2,094
                   discontinued product
                   Legal adjustments and    60,728              56,455
                   licensing settlement
   Total Non-GAAP cost of revenues and      355,398        ^(2) 365,132
   purchased intangible adjustments
   Non-GAAP Operating Expense Adjustments:
                   Purchase accounting      3,738               22,377
                   related adjustments
                   Business consolidation   72,732              75,324
                   costs
                   Legal adjustments and    10,467              9,960
                   licensing settlement
   Total Non-GAAP Operating Expense         86,937         ^(3) 107,661
   Adjustments
   Non-GAAP Other Expense Adjustments:
                   Noncash interest expense 5,382               30,779
                   charges
                   Other expense            5,302               -
   Total Non-GAAP Other Expense Adjustments 10,684         ^(4) 30,779
   Non-GAAP Income Tax Provision
   Adjustments:
                   Income tax adjustments   (170,681)           (157,490)
   Total Non-GAAP Income Tax Provision      (170,681)      ^(5) (157,490)
   Adjustments
Non-GAAP Net Income                         $             $      
                                            713,625            688,921
   Non-GAAP loss attributable to            406            ^(6) 350
   non-controlling interest
Non-GAAP Net Income Attributable to         $             $      
Controlling Interest                        714,031            689,271
Add back interest expense for subordinated  12                  131
debt, net of tax
Non-GAAP Numerator for diluted earnings per $             $      
share                                       714,043            689,402
Non-GAAP Earnings per common share:
   Basic earnings per share attributable to $             $      
   controlling interest                         4.06            3.84
   Diluted earnings per share attributable  $             $      
   to controlling interest                      3.98            3.71
Weighted average shares used in per share
calculation:
   Basic                                    175,831             179,390
   Diluted                                  179,365             185,595

Summary of Reconciliation between GAAP and
Non-GAAP Net Income
          For the year ended December 31, 2012, Non-GAAP earnings resulted in
          total revenue of $3.8 billion, gross profit of $2.5 billion with
          gross margin of 65.6%, operating profit of $1.1 billion with
          operating margin of 29.2%, and an income tax provision of $272.1
          million with the Non-GAAP effective tax rate of 27.6% with the above
          adjustments.
          For the year ended December 31, 2011, Non-GAAP earnings resulted in
          total revenue of $3.7 billion, gross profit of $2.4 billion with
          gross margin of 65.2%, operating profit of $1.1 billion with
          operating margin of 29.0%, and an income tax provision of $258.4
          million with the Non-GAAP effective tax rate of 27.3% with the
          above adjustments.
Notes
          Add back purchased deferred revenue of $1.3 million and adjust for
          revenue related to a discontinued product of $0.5 million for the
          year ended December 31, 2012. Add back purchased deferred revenue
^(1)      of $2.9 million and revenue related to returns of a discontinued
          product of $0.9 million, offset by $38.8 million of revenue
          recognized upon a licensing settlement for the year ended December
          31, 2011.
          Add back amortization of purchased intangibles of $291.8 million,
          amortization of a fair value inventory write-up of $1.5 million, and
          charges for contingent consideration remeasurement of $1.4 million
          for the year ended December 31, 2012. Add back amortization of
          purchased intangibles of $308.7 million, charges for inventory
          reserves related to a discontinued product of $2.1 million, and
^(2)      purchase accounting related cost of revenue revaluation of $0.5
          million which was offset by contingent consideration remeasurement
          of $2.7 million for the year ended December 31, 2011. Add back
          $60.9 million and $52.0 million of legal adjustments, and royalty
          fees and compensation costs of ($0.2) million and $4.5 million as a
          result of a licensing settlement for the year ended December 31,
          2012 and 2011, respectively.
          Add back depreciation of purchase accounting property, plant, and
          equipment revaluation of $3.7 million for the year ended December
          31, 2012. Add back depreciation of purchase accounting property,
          plant, and equipment revaluation of $7.1 million, charges for
          contingent consideration remeasurement of $13.7 million, accelerated
          compensation expense related to business acquisitions of $1.5
          million for year ended December 31, 2011. Add back $11.4 million of
          legal adjustments offset by compensation costs of $0.9 million as a
^(3)      result of licensing settlement for the year ended December 31,
          2012. Add back compensation costs, impairment charges, offset with
          expense recovery of $10.0 million as a result of a licensing
          settlement for the year ended December 31, 2011. Add back business
          consolidation costs including restructuring and integrating acquired
          entities, aligning acquired and existing operations through business
          transformation activities and costs associated with divesting
          entities of $72.7 million and $75.3 million for the year ended
          December 31, 2012 and 2011, respectively.
          Add back charges associated with a divestiture activity of $5.3
          million, charges related to non-cash interest expense for senior
          convertible debts of $1.7 million and the extinguishment of a line
^(4)      of credit facility of $3.7 million for the year ended December 31,
          2012. Add back charges related to non-cash interest expense for
          senior convertible debts of $24.6 million and imputed finances
          charge of $6.2 million associated with contingent consideration on
          business acquisitions for the year ended December 31, 2011.
          Non-GAAP tax adjustment due to the exclusion of the aforementioned
          business combination related charges, non cash charges, and one-time
^(5)      costs which are not indicative of the profitability or cash flows of
          the Company's ongoing or future operations. These deductions produce
          a GAAP only tax benefit which is added back for Non-GAAP
          presentation.
          Non-GAAP net loss attributable to non-controlling interest, net of
^(6)      tax benefit, adjusted for noncash charges for purchase accounting
          property, plant, and equipment revaluation.
          The Company reports Non-GAAP results which excludes costs that are
          not indicative of the profitability or cash flows of the Company's
          ongoing or future operations. Such costs are restructuring cost,
          business transformation expenses, amortization and depreciation of
          deferred revenue, intangibles assets, and fixed assets, and
          revaluation charges for inventories, contingent consideration
          liabilities, asset impairments, and in process research and
          development expenses, incurred as a result of business combinations
          as well as the impact from the divestiture and discontinuance of
          product lines. The Company also excludes noncash interest expense
          associated with convertible debt bifurcation and noncash charges
          associated with non-controlling interests. In addition, the Company
          excludes one-time costs including the early repayment of debt and
          the associated impacts, and the impact of certain settlements in
          order to provide a supplemental comparison of the results of
          operations.



LIFE TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                    For the year
                                    ended December 31,
(in thousands)(unaudited)           2012                     2011
                                    $             $        
Net income                               430,449             
                                                             377,834
      Add back amortization and
      share-based compensation      390,164                  394,326
      Add back depreciation         126,005                  123,578
      Balance sheet changes         3,366                    (26,959)
      Other noncash adjustments     (171,992)                (59,644)
Net cash provided by operating      777,992                  809,135
activities
      Capital expenditures          (116,408)                (99,293)
Free cash flow                      661,584                  709,842
Net cash used in investing          (163,065)                (52,591)
activities
Net cash used in financing          (1,082,414)              (627,268)
activities
Effect of exchange rate changes on  680                      (4,790)
cash
Net (decrease) increase in cash and $             $        
cash equivalents                        (583,215)             
                                                             25,193



LIFE TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
                                December 31,              December 31,
(in thousands)                  2012                       2011
ASSETS                          (unaudited)
Current assets:
 Cash and short-term            $              $         
 investments                           276,369           881,994
 Trade accounts receivable, net
 of allowance for doubtful      697,228                    636,998
 accounts
 Inventories                    403,488                    377,866
 Prepaid expenses and other     248,154                    196,759
 current assets
  Total current assets      1,625,239                  2,093,617
Long-term assets                7,012,826                  7,094,346
  Total assets              $              $         
                                      8,638,065          9,187,963
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
 Current portion of long-term   $              $         
 debt                                  253,214           450,839
 Short-term borrowings          100,000                    -
 Accounts payable, accrued
 expenses and other current     839,137                    1,045,467
 liabilities
  Total current liabilities 1,192,351                  1,496,306
Long-term debt                  2,060,855                  2,297,653
Other long-term liabilities     731,396                    794,778
Stockholders' equity            4,653,463                  4,599,226
  Total liabilities and      $              $         
 stockholders'                       8,638,065          9,187,963
  equity

SOURCE Life Technologies Corporation

Website: http://www.lifetechnologies.com
 
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