Attached files

file filename
8-K - 8-K - ABBOTT LABORATORIESa13-10115_18k.htm

Exhibit 99.1

 

Abbott Laboratories and Subsidiaries

Reconciliation of Non-GAAP Financial Information to

Abbott’s 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 AbbVie’s 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 Abbott’s historical operations in accordance with Accounting Standards Codification 205-20-45.  All Acquired in-Process Research and Development  (IPR&D) costs in Abbott’s historical 2012 consolidated statement of earnings relate to AbbVie and have been included in discontinued operations.

 

This column includes AbbVie’s 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 Abbott’s 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 Abbott’s 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 Abbott’s 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

Abbott’s 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 AbbVie’s 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 Abbott’s historical operations in accordance with Accounting Standards Codification 205-20-45.  All Acquired in-Process Research and Development  (IPR&D) costs in Abbott’s historical 2012 consolidated statement of earnings relate to AbbVie and have been included in discontinued operations.

 

This column includes AbbVie’s 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 Abbott’s 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 Abbott’s 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 Abbott’s 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

Abbott’s 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 AbbVie’s 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 Abbott’s historical operations in accordance with Accounting Standards Codification 205-20-45.  All Acquired in-Process Research and Development  (IPR&D) costs in Abbott’s historical 2012 consolidated statement of earnings relate to AbbVie and have been included in discontinued operations.

 

This column includes AbbVie’s 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 Abbott’s 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 Abbott’s 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 Abbott’s 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

Abbott’s 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 AbbVie’s 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 Abbott’s historical operations in accordance with Accounting Standards Codification 205-20-45.

 

This column includes AbbVie’s 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 Abbott’s 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 Abbott’s 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 Abbott’s 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

Abbott’s 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 AbbVie’s 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 Abbott’s historical operations in accordance with Accounting Standards Codification 205-20-45.  All Acquired in-Process Research and Development  (IPR&D) costs in Abbott’s historical 2012 consolidated statement of earnings relate to AbbVie and have been included in discontinued operations.

 

This column includes AbbVie’s 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 Abbott’s 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 Abbott’s 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 Abbott’s 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.