Activist investor Starboard Value rattled Perrigo Co. on Mondaywith a scathing criticism of the drug company's management. A lookat Perrigo's financials reveals one way management has excelled:Making its results look good.

Quarter after quarter, the Dublin, Ireland-based maker ofgeneric drugs relied on one-time expenses and novel terms like“organic net sales” to highlight a string of profits on its ownadjusted terms. In its full-year 2015 report, Perrigo listed $1.09billion in adjusted profit. The word “loss” was used sparingly,despite a net loss of $33 million using non-adjusted accountingthat adheres to Generally Accepted Accounting Principles, known asGAAP.

It was the biggest percentage disparity last year betweenadjusted and GAAP figures among companies in the Standard &Poor's 500 index, according to data compiled by Bloomberg.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.