Attached files
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8-K - 8-K - ABBOTT LABORATORIES | a13-10115_18k.htm |
Exhibit 99.1
Abbott Laboratories and Subsidiaries
Reconciliation of Non-GAAP Financial Information to
Abbotts 2012 Historical Information Adjusted for Discontinued Operations
Year Ended December 31, 2012
(dollars in millions, except per share data - unaudited)
|
|
|
|
|
|
|
|
|
|
Adjusted for |
| |||||
|
|
|
|
|
|
|
|
|
|
Discontinued |
| |||||
|
|
|
|
|
|
Historical |
|
|
|
Operations |
| |||||
|
|
|
|
AbbVie |
|
Adjusted for |
|
Specified |
|
and Excluding |
| |||||
|
|
Historical |
|
Separation |
|
Discontinued |
|
Items |
|
Specified |
| |||||
|
|
(Note 1) |
|
(Note 2) |
|
Operations |
|
(Note 3) |
|
Items |
| |||||
Net Sales |
|
$ |
39,874 |
|
(18,380 |
) |
$ |
21,494 |
|
|
|
$ |
21,494 |
| ||
Cost of products sold, excluding amortization expense |
|
13,701 |
|
(3,884 |
) |
9,817 |
|
(237 |
) |
9,580 |
| |||||
Amortization of intangible assets |
|
1,419 |
|
(624 |
) |
795 |
|
(795 |
) |
|
| |||||
Research & development |
|
4,322 |
|
(2,778 |
) |
1,544 |
|
(85 |
) |
1,459 |
| |||||
Acquired in-process and collaborations research and development |
|
288 |
|
(288 |
) |
|
|
|
|
|
| |||||
Selling, general and administrative |
|
12,059 |
|
(4,615 |
) |
7,444 |
|
(715 |
) |
6,729 |
| |||||
Total Operating Cost and Expenses |
|
31,789 |
|
(12,189 |
) |
19,600 |
|
(1,832 |
) |
17,768 |
| |||||
Operating Earnings |
|
8,085 |
|
(6,191 |
) |
1,894 |
|
1,832 |
|
3,726 |
| |||||
Net Interest expense |
|
513 |
|
(225 |
) |
288 |
|
(181 |
) |
107 |
| |||||
Net loss on debt extinguishment |
|
1,351 |
|
|
|
1,351 |
|
(1,351 |
) |
|
| |||||
Net foreign exchange loss (gain) |
|
(8 |
) |
(17 |
) |
(25 |
) |
|
|
(25 |
) | |||||
Other (income) expense, net |
|
(34 |
) |
9 |
|
(25 |
) |
(10 |
) |
(35 |
) | |||||
Earnings from Continuing Operations Before Taxes |
|
6,263 |
|
(5,958 |
) |
305 |
|
3,374 |
|
3,679 |
| |||||
Taxes on Earnings |
|
300 |
|
(574 |
) |
(274 |
) |
1,187 |
|
913 |
| |||||
Earnings from Continuing Operations |
|
5,963 |
|
(5,384 |
) |
579 |
|
2,187 |
|
2,766 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Diluted Earnings Per Common Share |
|
$ |
3.72 |
|
$ |
(3.36 |
) |
$ |
0.36 |
|
$ |
1.38 |
|
$ |
1.74 |
|
Notes:
1. Reflects the historical consolidated financial results for Abbott Laboratories in accordance with GAAP.
2. Reflects the discontinued operations of the AbbVie business. This column includes the 2012 earnings reported in AbbVies Form 10-K except for corporate overhead costs and certain costs associated with transition services that will be provided by Abbott to AbbVie. This column also includes other costs incurred by Abbott to separate AbbVie as well as an allocation of interest assuming a uniform ratio of consolidated debt to equity for all of Abbotts historical operations in accordance with Accounting Standards Codification 205-20-45. All Acquired in-Process Research and Development (IPR&D) costs in Abbotts historical 2012 consolidated statement of earnings relate to AbbVie and have been included in discontinued operations.
This column includes AbbVies 2012 earnings as its business was operated as part of Abbott prior to the distribution and is not meant to be representative of the actual results that would have been incurred had AbbVie operated as an independent, publicly-traded company in 2012.
3. This column includes the following:
· The specified items that were previously identified in Abbotts earnings release dated January 23, 2013 and that do not relate to expenses included in the AbbVie Separation column. The related tax effects reflect an adjustment of Abbotts historical effective tax rate for discontinued operations.
· Intangible amortization expense.
· An adjustment on the Selling, general and administrative line to remove certain corporate costs that were transferred to AbbVie in the separation as well as certain information technology and other back office support costs that will be charged to AbbVie under transition services agreements. The related tax effects have been included in Taxes on Earnings.
· An adjustment to interest expense to reflect Abbotts capital structure after the redemption of $7.7 billion of long-term debt in the 4th quarter of 2012 and the separation of AbbVie. The related tax effects have been included in Taxes on Earnings.
Abbott Laboratories and Subsidiaries
Reconciliation of Non-GAAP Financial Information to
Abbotts 2012 Historical Information Adjusted for Discontinued Operations
Quarter Ended March 31, 2012
(dollars in millions, except per share data - unaudited)
|
|
|
|
|
|
|
|
|
|
Adjusted for |
| |||||
|
|
|
|
|
|
|
|
|
|
Discontinued |
| |||||
|
|
|
|
|
|
Historical |
|
|
|
Operations |
| |||||
|
|
|
|
AbbVie |
|
Adjusted for |
|
Specified |
|
and Excluding |
| |||||
|
|
Historical |
|
Separation |
|
Discontinued |
|
Items |
|
Specified |
| |||||
|
|
(Note 1) |
|
(Note 2) |
|
Operations |
|
(Note 3) |
|
Items |
| |||||
Net Sales |
|
$ |
9,457 |
|
(4,173 |
) |
$ |
5,284 |
|
|
|
$ |
5,284 |
| ||
Cost of products sold, excluding amortization expense |
|
3,336 |
|
(977 |
) |
2,359 |
|
(27 |
) |
2,332 |
| |||||
Amortization of intangible assets |
|
389 |
|
(180 |
) |
209 |
|
(209 |
) |
|
| |||||
Research & development |
|
1,006 |
|
(643 |
) |
363 |
|
|
|
363 |
| |||||
Acquired in-process and collaborations research and development |
|
150 |
|
(150 |
) |
|
|
|
|
|
| |||||
Selling, general and administrative |
|
3,000 |
|
(1,157 |
) |
1,843 |
|
(125 |
) |
1,718 |
| |||||
Total Operating Cost and Expenses |
|
7,881 |
|
(3,107 |
) |
4,774 |
|
(361 |
) |
4,413 |
| |||||
Operating Earnings |
|
1,576 |
|
(1,066 |
) |
510 |
|
361 |
|
871 |
| |||||
Net Interest expense |
|
109 |
|
(44 |
) |
65 |
|
(39 |
) |
26 |
| |||||
Net foreign exchange loss (gain) |
|
25 |
|
(10 |
) |
15 |
|
|
|
15 |
| |||||
Other (income) expense, net |
|
(71 |
) |
38 |
|
(33 |
) |
|
|
(33 |
) | |||||
Earnings from Continuing Operations Before Taxes |
|
1,513 |
|
(1,050 |
) |
463 |
|
400 |
|
863 |
| |||||
Taxes on Earnings |
|
271 |
|
(159 |
) |
112 |
|
106 |
|
218 |
| |||||
Earnings from Continuing Operations |
|
1,242 |
|
(891 |
) |
351 |
|
294 |
|
645 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Diluted Earnings Per Common Share |
|
$ |
0.78 |
|
$ |
(0.56 |
) |
$ |
0.22 |
|
$ |
0.18 |
|
$ |
0.40 |
|
Notes:
1. Reflects the historical consolidated financial results for Abbott Laboratories in accordance with GAAP.
2. Reflects the discontinued operations of the AbbVie business. This column includes the 2012 earnings reported in AbbVies Form 10 except for corporate overhead costs and certain costs associated with transition services that will be provided by Abbott to AbbVie. This column also includes other costs incurred by Abbott to separate AbbVie as well as an allocation of interest assuming a uniform ratio of consolidated debt to equity for all of Abbotts historical operations in accordance with Accounting Standards Codification 205-20-45. All Acquired in-Process Research and Development (IPR&D) costs in Abbotts historical 2012 consolidated statement of earnings relate to AbbVie and have been included in discontinued operations.
This column includes AbbVies 2012 earnings as its business was operated as part of Abbott prior to the distribution and is not meant to be representative of the actual results that would have been incurred had AbbVie operated as an independent, publicly-traded company in 2012.
3. This column includes the following:
· The specified items that were previously identified in Abbotts earnings release dated April 18, 2012 and that do not relate to expenses included in the AbbVie Separation column. The related tax effects reflect an adjustment of Abbotts historical effective tax rate for discontinued operations.
· Intangible amortization expense.
· An adjustment on the Selling, general and administrative line to remove certain corporate costs that were transferred to AbbVie in the separation as well as certain information technology and other back office support costs that will be charged to AbbVie under transition services agreements. The related tax effects have been included in Taxes on Earnings.
· An adjustment to interest expense to reflect Abbotts capital structure after the redemption of $7.7 billion of long-term debt in the 4th quarter of 2012 and the separation of AbbVie. The related tax effects have been included in Taxes on Earnings.
Abbott Laboratories and Subsidiaries
Reconciliation of Non-GAAP Financial Information to
Abbotts 2012 Historical Information Adjusted for Discontinued Operations
Quarter Ended June 30, 2012
(dollars in millions, except per share data - unaudited)
|
|
|
|
|
|
|
|
|
|
Adjusted for |
| |||||
|
|
|
|
|
|
|
|
|
|
Discontinued |
| |||||
|
|
|
|
|
|
Historical |
|
|
|
Operations |
| |||||
|
|
|
|
AbbVie |
|
Adjusted for |
|
Specified |
|
and Excluding |
| |||||
|
|
Historical |
|
Separation |
|
Discontinued |
|
Items |
|
Specified |
| |||||
|
|
(Note 1) |
|
(Note 2) |
|
Operations |
|
(Note 3) |
|
Items |
| |||||
Net Sales |
|
$ |
9,807 |
|
(4,494 |
) |
$ |
5,313 |
|
|
|
$ |
5,313 |
| ||
Cost of products sold, excluding amortization expense |
|
3,267 |
|
(897 |
) |
2,370 |
|
(25 |
) |
2,345 |
| |||||
Amortization of intangible assets |
|
370 |
|
(175 |
) |
195 |
|
(195 |
) |
|
| |||||
Research & development |
|
1,011 |
|
(641 |
) |
370 |
|
(3 |
) |
367 |
| |||||
Acquired in-process and collaborations research and development |
|
110 |
|
(110 |
) |
|
|
|
|
|
| |||||
Selling, general and administrative |
|
2,945 |
|
(1,131 |
) |
1,814 |
|
(120 |
) |
1,694 |
| |||||
Total Operating Cost and Expenses |
|
7,703 |
|
(2,954 |
) |
4,749 |
|
(343 |
) |
4,406 |
| |||||
Operating Earnings |
|
2,104 |
|
(1,540 |
) |
564 |
|
343 |
|
907 |
| |||||
Net Interest expense |
|
107 |
|
(43 |
) |
64 |
|
(34 |
) |
30 |
| |||||
Net foreign exchange loss (gain) |
|
(14 |
) |
(11 |
) |
(25 |
) |
|
|
(25 |
) | |||||
Other (income) expense, net |
|
8 |
|
(13 |
) |
(5 |
) |
|
|
(5 |
) | |||||
Earnings from Continuing Operations Before Taxes |
|
2,003 |
|
(1,473 |
) |
530 |
|
377 |
|
907 |
| |||||
Taxes on Earnings |
|
278 |
|
(159 |
) |
119 |
|
99 |
|
218 |
| |||||
Earnings from Continuing Operations |
|
1,725 |
|
(1,314 |
) |
411 |
|
278 |
|
689 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Diluted Earnings Per Common Share |
|
$ |
1.08 |
|
$ |
(0.82 |
) |
$ |
0.26 |
|
$ |
0.17 |
|
$ |
0.43 |
|
Notes:
1. Reflects the historical consolidated financial results for Abbott Laboratories in accordance with GAAP.
2. Reflects the discontinued operations of the AbbVie business. This column includes the 2012 earnings reported in AbbVies Form 10 except for corporate overhead costs and certain costs associated with transition services that will be provided by Abbott to AbbVie. This column also includes other costs incurred by Abbott to separate AbbVie as well as an allocation of interest assuming a uniform ratio of consolidated debt to equity for all of Abbotts historical operations in accordance with Accounting Standards Codification 205-20-45. All Acquired in-Process Research and Development (IPR&D) costs in Abbotts historical 2012 consolidated statement of earnings relate to AbbVie and have been included in discontinued operations.
This column includes AbbVies 2012 earnings as its business was operated as part of Abbott prior to the distribution and is not meant to be representative of the actual results that would have been incurred had AbbVie operated as an independent, publicly-traded company in 2012.
3. This column includes the following:
· The specified items that were previously identified in Abbotts earnings release dated July 18, 2012 and that do not relate to expenses included in the AbbVie Separation column. The related tax effects reflect an adjustment of Abbotts historical effective tax rate for discontinued operations.
· Intangible amortization expense.
· An adjustment on the Selling, general and administrative line to remove certain corporate costs that were transferred to AbbVie in the separation as well as certain information technology and other back office support costs that will be charged to AbbVie under transition services agreements. The related tax effects have been included in Taxes on Earnings.
· An adjustment to interest expense to reflect Abbotts capital structure after the redemption of $7.7 billion of long-term debt in the 4th quarter of 2012 and the separation of AbbVie. The related tax effects have been included in Taxes on Earnings.
Abbott Laboratories and Subsidiaries
Reconciliation of Non-GAAP Financial Information to
Abbotts 2012 Historical Information Adjusted for Discontinued Operations
Quarter Ended September 30, 2012
(dollars in millions, except per share data - unaudited)
|
|
|
|
|
|
|
|
|
|
Adjusted for |
| |||||
|
|
|
|
|
|
|
|
|
|
Discontinued |
| |||||
|
|
|
|
|
|
Historical |
|
|
|
Operations |
| |||||
|
|
|
|
AbbVie |
|
Adjusted for |
|
Specified |
|
and Excluding |
| |||||
|
|
Historical |
|
Separation |
|
Discontinued |
|
Items |
|
Specified |
| |||||
|
|
(Note 1) |
|
(Note 2) |
|
Operations |
|
(Note 3) |
|
Items |
| |||||
Net Sales |
|
$ |
9,773 |
|
(4,508 |
) |
$ |
5,265 |
|
|
|
$ |
5,265 |
| ||
Cost of products sold, excluding amortization expense |
|
3,369 |
|
(880 |
) |
2,489 |
|
(133 |
) |
2,356 |
| |||||
Amortization of intangible assets |
|
329 |
|
(134 |
) |
195 |
|
(195 |
) |
|
| |||||
Research & development |
|
1,164 |
|
(813 |
) |
351 |
|
(5 |
) |
346 |
| |||||
Selling, general and administrative |
|
2,922 |
|
(1,002 |
) |
1,920 |
|
(262 |
) |
1,658 |
| |||||
Total Operating Cost and Expenses |
|
7,784 |
|
(2,829 |
) |
4,955 |
|
(595 |
) |
4,360 |
| |||||
Operating Earnings |
|
1,989 |
|
(1,679 |
) |
310 |
|
595 |
|
905 |
| |||||
Net Interest expense |
|
134 |
|
(46 |
) |
88 |
|
(62 |
) |
26 |
| |||||
Net foreign exchange loss (gain) |
|
(6 |
) |
(6 |
) |
(12 |
) |
|
|
(12 |
) | |||||
Other (income) expense, net |
|
(11 |
) |
14 |
|
3 |
|
|
|
3 |
| |||||
Earnings from Continuing Operations Before Taxes |
|
1,872 |
|
(1,641 |
) |
231 |
|
657 |
|
888 |
| |||||
Taxes on Earnings |
|
(71 |
) |
(37 |
) |
(108 |
) |
330 |
|
222 |
| |||||
Earnings from Continuing Operations |
|
1,943 |
|
(1,604 |
) |
339 |
|
327 |
|
666 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Diluted Earnings Per Common Share |
|
$ |
1.21 |
|
$ |
(1.00 |
) |
$ |
0.21 |
|
$ |
0.21 |
|
$ |
0.42 |
|
Notes:
1. Reflects the historical consolidated financial results for Abbott Laboratories in accordance with GAAP.
2. Reflects the discontinued operations of the AbbVie business. This column includes the 2012 earnings reported in AbbVies Form 10 except for corporate overhead costs and certain costs associated with transition services that will be provided by Abbott to AbbVie. This column also includes other costs incurred by Abbott to separate AbbVie as well as an allocation of interest assuming a uniform ratio of consolidated debt to equity for all of Abbotts historical operations in accordance with Accounting Standards Codification 205-20-45.
This column includes AbbVies 2012 earnings as its business was operated as part of Abbott prior to the distribution and is not meant to be representative of the actual results that would have been incurred had AbbVie operated as an independent, publicly-traded company in 2012.
3. This column includes the following:
· The specified items that were previously identified in Abbotts earnings release dated October 17, 2012 and that do not relate to expenses included in the AbbVie Separation column. The related tax effects reflect an adjustment of Abbotts historical effective tax rate for discontinued operations.
· Intangible amortization expense.
· An adjustment on the Selling, general and administrative line to remove certain corporate costs that were transferred to AbbVie in the separation as well as certain information technology and other back office support costs that will be charged to AbbVie under transition services agreements. The related tax effects have been included in Taxes on Earnings.
· An adjustment to interest expense to reflect Abbotts capital structure after the redemption of $7.7 billion of long-term debt in the 4th quarter of 2012 and the separation of AbbVie. The related tax effects have been included in Taxes on Earnings.
Abbott Laboratories and Subsidiaries
Reconciliation of Non-GAAP Financial Information to
Abbotts 2012 Historical Information Adjusted for Discontinued Operations
Quarter Ended December 31, 2012
(dollars in millions, except per share data - unaudited)
|
|
|
|
|
|
|
|
|
|
Adjusted for |
| |||||
|
|
|
|
|
|
|
|
|
|
Discontinued |
| |||||
|
|
|
|
|
|
Historical |
|
|
|
Operations |
| |||||
|
|
|
|
AbbVie |
|
Adjusted for |
|
Specified |
|
and Excluding |
| |||||
|
|
Historical |
|
Separation |
|
Discontinued |
|
Items |
|
Specified |
| |||||
|
|
(Note 1) |
|
(Note 2) |
|
Operations |
|
(Note 3) |
|
Items |
| |||||
Net Sales |
|
$ |
10,837 |
|
(5,205 |
) |
$ |
5,632 |
|
|
|
$ |
5,632 |
| ||
Cost of products sold, excluding amortization expense |
|
3,729 |
|
(1,130 |
) |
2,599 |
|
(52 |
) |
2,547 |
| |||||
Amortization of intangible assets |
|
331 |
|
(135 |
) |
196 |
|
(196 |
) |
|
| |||||
Research & development |
|
1,141 |
|
(681 |
) |
460 |
|
(77 |
) |
383 |
| |||||
Acquired in-process and collaborations research and development |
|
28 |
|
(28 |
) |
|
|
|
|
|
| |||||
Selling, general and administrative |
|
3,193 |
|
(1,325 |
) |
1,868 |
|
(208 |
) |
1,660 |
| |||||
Total Operating Cost and Expenses |
|
8,422 |
|
(3,299 |
) |
5,123 |
|
(533 |
) |
4,590 |
| |||||
Operating Earnings |
|
2,415 |
|
(1,906 |
) |
509 |
|
533 |
|
1,042 |
| |||||
Net Interest expense |
|
163 |
|
(92 |
) |
71 |
|
(46 |
) |
25 |
| |||||
Net loss on debt extinguishment |
|
1,351 |
|
|
|
1,351 |
|
(1,351 |
) |
|
| |||||
Net foreign exchange loss (gain) |
|
(12 |
) |
10 |
|
(2 |
) |
|
|
(2 |
) | |||||
Other (income) expense, net |
|
39 |
|
(30 |
) |
9 |
|
(10 |
) |
(1 |
) | |||||
Earnings from Continuing Operations Before Taxes |
|
874 |
|
(1,794 |
) |
(920 |
) |
1,940 |
|
1,020 |
| |||||
Taxes on Earnings |
|
(179 |
) |
(219 |
) |
(398 |
) |
652 |
|
254 |
| |||||
Earnings from Continuing Operations |
|
1,053 |
|
(1,575 |
) |
(522 |
) |
1,288 |
|
766 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Diluted Earnings Per Common Share |
|
$ |
0.66 |
|
$ |
(0.99 |
) |
$ |
(0.33 |
) |
$ |
0.81 |
|
$ |
0.48 |
|
Notes:
1. Reflects the historical consolidated financial results for Abbott Laboratories in accordance with GAAP.
2. Reflects the discontinued operations of the AbbVie business. This column includes the 2012 earnings reported in AbbVies Form 10-K except for corporate overhead costs and certain costs associated with transition services that will be provided by Abbott to AbbVie. This column also includes other costs incurred by Abbott to separate AbbVie as well as an allocation of interest assuming a uniform ratio of consolidated debt to equity for all of Abbotts historical operations in accordance with Accounting Standards Codification 205-20-45. All Acquired in-Process Research and Development (IPR&D) costs in Abbotts historical 2012 consolidated statement of earnings relate to AbbVie and have been included in discontinued operations.
This column includes AbbVies 2012 earnings as its business was operated as part of Abbott prior to the distribution and is not meant to be representative of the actual results that would have been incurred had AbbVie operated as an independent, publicly-traded company in 2012.
3. This column includes the following:
· The specified items that were previously identified in Abbotts earnings release dated January 23, 2013 and that do not relate to expenses included in the AbbVie Separation column. The related tax effects reflect an adjustment of Abbotts historical effective tax rate for discontinued operations.
· Intangible amortization expense.
· An adjustment on the Selling, general and administrative line to remove certain corporate costs that were transferred to AbbVie in the separation as well as certain information technology and other back office costs that will be charged to AbbVie under transition services agreements. The related tax effects have been included in Taxes on Earnings.
· An adjustment to interest expense to reflect Abbotts capital structure after the redemption of $7.7 billion of long-term debt in the 4th quarter of 2012 and the Separation of AbbVie. The related tax effects have been included in Taxes on Earnings.