The following information applies to the questions displayed below.$]$ Exhibit $1$ presents the fourth quarter press release of Allergan. Allergan is a global pharmaceutical company and a leader in a new industry model $$ Growth Pharma. Allergan$$s product lines include Botox, Juvederm, Latisse, Namenda, and Restasis. Exhibit $2$ presents the reconciliation from GAAP to non$-$GAAP income that was included with the release. Over the years, Allergan has had many disagreements with the SEC about the presentation of non$-$GAAP metrics in their financial reports and press releases. Allergan$$s responses to SEC staff comments have been to emphasize that its performance measures $$are useful to both management and investors in assessing current performance and future operations.$$ Moreover, Allergan contended in its response that $$analysts for our industry group base their third$-$party consensus estimates on non$-$GAAP earnings per share metrics.$$ Supplemental Information and Exhibits Allergan Reports Solid Finish to $2017$ with $12$ percent Increase in Fourth Quarter GAAP Net Revenues to $$4\mathrm{.}3$ Billion: Q$42017$ GAAP Continuing Operations Income Per Share of $$9\mathrm{.}97$; Q$4$ Non$-$GAAP Performance Net Income Per Share of $$4\mathrm{.}86$ Q$42017$ GAAP Operating Loss from Continuing Operations of $$90\mathrm{.}5$ Million; Q$4$ Non$-$GAAP Adjusted Operating Income from Continuing Operations of $$2\mathrm{.}17$ Billion Q$42017$ GAAP Revenue Growth Versus Prior Year Quarter Powered by BOTOX$,$ JUV$$DERM$$ Collection, ALLODERM$,$ CoolSculpting$,$ and Launch Products Full$-$Year $2017$ GAAP Net Revenues of $$15\mathrm{.}94$ Billion Full$-$Year $2017$ GAAP Continuing Operations Loss Per Share of $$11\mathrm{.}99$; Full$-$Year Non$-$GAAP Performance Net Income Per Share of $$16\mathrm{.}35$ Company Continues to Advance R&D Pipeline Beyond Six $$Star$$ Programs Provides Full$-$Year $2018$ Guidance and First Quarter $2018$ GAAP Net Revenue and Non$-$ GAAP Performance Net Income Per Share Guidance Dublin, Ireland $$ February $6,2018$ Allergan plc $($NYSE: AGN$)$ today reported its fourth quarter and full$-$year $2017$ continuing operations performance. Excludes the reclassification of revenues of $($$$80\mathrm{.}0)$ million in the twelve months ended December $31,2016$ related to the portion of Allergan product revenues sold by our former Anda Distribution Business into discontinued operations. Continuing on from the earnings release, the total fourth quarter net revenues were $$4\mathrm{.}33$ billion, a $12\mathrm{.}0$ percent increase from the prior year quarter, driven by BOTOX$$ Cosmetic, BOTOX$$ Therapeutic, JUV$$DERM$$ Collection, ALLODERM$,$ CoolSculpting$$ and new products, including VRAYLARTM, NAMZARIC$,$ and VIBERZI$.$ The increase was partially offset by lower revenues from products losing patent exclusivity and the continuing decline in ACZONE$$ and NAMENDA XR$.$ For the full$-$year $2017,$ Allergan reported total net revenues of $$15\mathrm{.}94$ billion, a $9\mathrm{.}4$ percent increase versus the prior year, driven by continued strong growth across key therapeutic areas and key products, and the addition of Regenerative Medicine products and CoolSculpting$.2017$ was a pivotal year for Allergan and we delivered solid results. We powered strong revenue growth of our top products and in each of our regions. We acquired, integrated and grew two new businesses and continued to advance our R&D pipeline. Allergan also continued to execute our capital deployment plan by completing a $$15$ billion share repurchase program, instituting a dividend and paying down debt in $2017,$ said Brent Saunders, Chairman and CEO of Allergan. $$I believe that Allergan has a strong future and I am especially proud of our Allergan colleagues who continue to be Bold for Life by delivering treatments that make a difference for patients around the world.$$ Fourth Quarter $2017$ Performance GAAP operating loss from continuing operations in the fourth quarter $2017$ was $$90\mathrm{.}5$ million, including the impact of amortization, in$-$process research and development $($R&D$)$ impairments and charges associated with the December $2017$ restructuring program announced on January $3,2018.$ Non$-$GAAP adjusted operating income from continuing operations in the fourth quarter of $2017$ was $$2\mathrm{.}17$ billion, an increase of $16\mathrm{.}4$ percent versus the prior year quarter. Cash flow from operations for the fourth quarter of $2017$ increased to approximately $$2\mathrm{.}05$ billion. Full$-$Year $2017$ Performance GAAP operating loss from continuing operations for the full$-$year $2017$ was $$5\mathrm{.}92$ billion, compared with $$1\mathrm{.}83$ billion in $2016$ primarily due to impairment charges recognized in the third quarter of $2017$ of $$3\mathrm{.}2$ billion related to RESTASIS$$ and $$646\mathrm{.}0$ million related to ACZONE$.$ Non$-$GAAP adjusted operating income from continuing operations for the full$-$year $2017$ was $$7\mathrm{.}65$ billion, an increase of $5\mathrm{.}6$ percent versus prior year. GAAP cash flow from operations for the full year of $2017$ increased to approximately $$5\mathrm{.}87$ billion, compared to $$1\mathrm{.}45$ billion in $2016,$ which was negatively impacted by cash taxes paid in connection with the gain recognized on the businesses sold to Teva Pharmaceuticals Industries, Ltd $($Teva$).$ Operating Expenses Total GAAP Selling, General and Administrative $($SG&A$)$ Expense was $$1\mathrm{.}27$ billion for the fourth quarter $2017,$ compared to $$1\mathrm{.}28$ billion in the prior year quarter. Included within GAAP SG&A in the fourth quarter and full$-$year $2017$ were charges related to the December $2017$ restructuring program of $$80\mathrm{.}0$ million. Total non$-$GAAP SG&A expense increased to $$1\mathrm{.}13$ billion for the fourth quarter $2017,$ compared to $$1\mathrm{.}07$ billion in the prior year period, primarily due to costs associated with the addition of the Regenerative Medicine and CoolSculpting$$ businesses. GAAP R&D investment for the fourth quarter of $2017$ was $$408\mathrm{.}2$ million, compared to $$913\mathrm{.}3$ million in the fourth quarter of $2016.$ Non$-$GAAP R&D investment for the fourth quarter $2017$ was $$405\mathrm{.}7$ million, a decrease of $4\mathrm{.}7$ percent over the prior year quarter, due to reprioritization of R&D programs and tight expense management. Asset Sales & Impairments, Net and In$-$Process R&D Impairments The Company recorded impairment charges of $$238\mathrm{.}5$ million and $$456\mathrm{.}0$ million in the three months ended December $31,2017$ and $2016,$ respectively. The Company excludes asset sales and impairments, net and in$-$process research and development impairments from its non$-$GAAP performance net income attributable to shareholders as well as Adjusted EBITDA and Adjusted Operating Income. Amortization, Other Income $($Expense$)$ Net, Tax and Capitalization Amortization expense from continuing operations for the fourth quarter $2017$ was $$1\mathrm{.}92$ billion, compared to $$1\mathrm{.}64$ billion in the fourth quarter of $2016.$ The Company$$s GAAP continuing operations tax rate benefit in the fourth quarter of $2017$ was primarily attributable to discrete income tax benefits recognized as a result of the Tax Cuts and Jobs Act $($TCJA$).$ The Company$$s non$-$GAAP adjusted continuing operations tax rate was $11\mathrm{.}4$ percent in the fourth quarter $2017.$ As of December $31,2017,$ Allergan had cash and marketable securities of $$6\mathrm{.}45$ billion and outstanding indebtedness of $$30\mathrm{.}1$ billion. Provisional Estimates of the Impact of U$.$S$.$ Tax Reform Allergan recorded a net provisional benefit of approximately $$2\mathrm{.}8$ billion related to the TCJA. This amount includes a $$730$ million provisional expense representing the U$.$S$.$ tax payable on deemed repatriated earnings of non$-$U$.$S$.$ subsidiaries offset by a $$3\mathrm{.}5$ billion net reduction of U$.$S$.$ deferred tax liabilities due to the lower enacted U$.$S$.$ tax rate and the change in assertion regarding permanently reinvested earnings as a result of the transition to a territorial tax system. These provisional estimates are based on the Company$$s initial analysis and current interpretation of the legislation. Given the complexity of the TCJA, anticipated guidance from the U$.$S$.$ Treasury, and the potential for additional guidance from the Securities and Exchange Commission or the Financial Accounting Standards Board, these estimates may be adjusted during $2018.$ Discontinued Operations and Continuing Operations As a result of the divestiture of the Company$$s generics business and the divestiture of the Company$$s Anda Distribution business in $2016,$ the financial results of those businesses have been reclassified to discontinued operations for all periods presented in our consolidated financial statements up through the date of the divestitures. Included within $($loss$)$ from discontinued operations for the three months ended December $31,2017,$ was a charge to settle certain Teva related matters, net of tax of $$387\mathrm{.}4$ million. Included in segment revenues in the twelve months ended December $31,2016,$ are product sales that were sold by the Anda Distribution business once the Anda Distribution business had sold the product to a third$-$party customer. These sales are included in segment results and are excluded from total continuing operations revenues through a reduction to corporate revenues. Cost of sales for these products in discontinued operations is equal to our average third$-$party cost of sales for third$-$party branded products distributed by Anda Distribution. Review Exhibit $2$ at the end of the case and answer the following questions. Look at each item included in the reconciliation and briefly discuss whether you think each one should or should not be included in a reconciliation from GAAP to non$-$GAAP. Exhibit $1$ALLERGAN PLC RECONCILIATION TABLE $($Unaudited; in millions except per share amounts$)$ lation. 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