
| (a) The constant currency revenue adjustment of $2.4 million and $11.8 million to reported revenue and to core revenue, for the three and nine months ended September 30, 2019, respectively, were calculated using the applicable average foreign exchange rates for the three and nine months ended September 30, 2018. (b) Merit’s core revenue is defined (a) with respect to prior fiscal year periods, as GAAP revenue, and (b) with respect to current fiscal year periods, as GAAP revenue, less revenue from certain acquisitions and strategic transactions. For the three and nine-month periods ended September 30, 2019, Merit’s core revenue excludes revenues attributable to (i) the acquisition of (1) certain divested assets of Becton, Dickinson and Company in February 2018 (excluded January 2019 only), (2) the assets of DirectACCESS Medical, LLC in May 2018 (excluded through April 2019 only), (3) Cianna Medical, Inc. in November 2018,(4) the assets of Vascular Insights, LLC in December 2018,(5) Brightwater Medical, Inc. in June 2019, and (6) Fibrovein Holdings Limited in August 2019 and (ii) distribution arrangements executed with NinePoint Medical, Inc. in April 2018 (excluded through April 2019 only) and QXMedical, LLC in May 2018 (excluded through May 2019 only). Core revenue on a constant currency basis is defined as core revenue (as described in the first sentence of this paragraph) adjusted to eliminate the foreign exchange impact related to those core revenues for the relevant period, using the applicable average foreign exchange rates in effect for the comparable prior-year periods presented. 23 % Change % Change Reported Revenue 9.6 % $ 243,049 $ 221,659 13.5 % $ 736,930 $ 649,504 Add: Impact of foreign exchange (a) 2,365 — 11,826 — Constant Currency Revenue 10.7 % $ 245,414 $ 221,659 15.3 % $ 748,756 $ 649,504 % Change % Change Reported Revenue 9.6 % $ 243,049 $ 221,659 13.5 % $ 736,930 $ 649,504 Less: Revenue from certain acquisitions (b) (14,145) — (47,664) — Core Revenue 3.3 % $ 228,904 $ 221,659 6.1 % $ 689,266 $ 649,504 Add: Impact of foreign exchange (a) 2,365 — 11,826 — Core Revenue on a Constant Currency Basis 4.3 % $ 231,269 $ 221,659 7.9 % $ 701,092 $ 649,504 2019 2018 2019 2018 September 30, September 30, Reconciliation of Reported Revenue to Core Revenue (Non-GAAP), Constant Currency Revenue (Non-GAAP), and Core Revenue on a Constant Currency Basis (Non-GAAP) (Unaudited; in thousands except percentages) Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 |