UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant
to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): June 30, 2004
ABBOTT LABORATORIES
(Exact name of registrant as specified in its charter)
|
Illinois |
|
1-2189 |
|
36-0698440 |
|
(State or other |
|
(Commission File Number) |
|
(IRS Employer |
100 Abbott Park Road
Abbott Park, Illinois 60064-6400
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code: (847) 937-6100
Item 12 Results of Operations and Financial Condition
As a result of the Hospira spin-off, which was completed on April 30, 2004, the historical results of Hospira through the date of the separation will now be reflected in Abbott’s financial statements as Discontinued Operations. As a reminder, Hospira was formed as a result of the spin-off of much of Abbott’s core global hospital products business as a tax-free distribution to shareholders. Also, as discussed in an 8-K filed on April 6, 2004, Abbott has adjusted its business segment reporting to reflect certain segment reclassifications effective January 1, 2004. With the completion of the spin-off, the remaining reclassifications and transfers to Hospira are now complete and detailed below.
The following schedules provide the historical Consolidated Statement of Earnings as previously reported less amounts transferred to discontinued operations.
In the schedules below, “Amounts Transferred to Discontinued Operations” and the lines for Discontinued Operations are the results of the Hospira business and, in quarters where direct transaction costs were incurred, include those costs. As an independent company, Hospira’s results will not include a deduction for direct transaction costs incurred by Abbott. Abbott’s Continuing Operations no longer include the financial results of Hospira and related direct transaction costs.
Abbott uses non-GAAP financial measures, including: Earnings from Continuing Operations Excluding One-time Charges and Diluted Earnings Per Common Share from Continuing Operations Excluding One-time Charges. These non-GAAP financial measures adjust for factors that are unusual or unpredictable. Abbott’s management believes the presentation of these non-GAAP financial measures provides useful information to investors regarding Abbott’s results of operations as these non-GAAP financial measures allow investors to better evaluate ongoing business performance. Abbott’s management also uses these non-GAAP financial measures internally to monitor performance of the businesses. Abbott, however, cautions investors to consider these non-GAAP financial measures in addition to, and not as a substitute for, financial measures prepared in accordance with GAAP.
Abbott Laboratories and Subsidiaries
Consolidated Statement of Earnings
Adjusted for Hospira Discontinued Operations
First Quarter Ended March 31, 2003
(unaudited)
|
|
|
As Reported |
|
Amounts
Transferred to |
|
As Adjusted |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Net Sales |
|
$ |
4,580,463,000 |
|
$ |
571,522,000 |
|
$ |
4,008,941,000 |
|
|
Cost of products sold |
|
2,197,741,000 |
|
397,824,000 |
|
1,799,917,000 |
|
|||
|
Research & development |
|
406,027,000 |
|
19,365,000 |
|
386,662,000 |
|
|||
|
Selling, general & administrative |
|
996,205,000 |
|
56,762,000 |
|
939,443,000 |
|
|||
|
Total Operating Cost and Expenses |
|
3,599,973,000 |
|
473,951,000 |
|
3,126,022,000 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Operating earnings |
|
980,490,000 |
|
97,571,000 |
|
882,919,000 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Net interest (income) expense |
|
37,290,000 |
|
(34,000 |
) |
37,324,000 |
|
|||
|
Net foreign exchange (gain) loss |
|
35,196,000 |
|
(46,000 |
) |
35,242,000 |
|
|||
|
(Income) from TAP Pharmaceutical |
|
(132,088,000 |
) |
— |
|
(132,088,000 |
) |
|||
|
Other (income) expense, net |
|
(13,831,000 |
) |
2,445,000 |
|
(16,276,000 |
) |
|||
|
Earnings From Continuing Operations Before Taxes |
|
1,053,923,000 |
|
95,206,000 |
|
958,717,000 |
|
|||
|
Taxes On Earnings From Continuing Operations |
|
252,942,000 |
|
28,086,000 |
|
224,856,000 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Earnings From Continuing Operations |
|
800,981,000 |
|
67,120,000 |
|
733,861,000 |
|
|||
|
Earnings From Discontinued Operations, net of taxes |
|
— |
|
67,120,000 |
|
67,120,000 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Net Earnings |
|
$ |
800,981,000 |
|
$ |
— |
|
$ |
800,981,000 |
|
|
|
|
|
|
|
|
|
|
|||
|
Diluted Earnings Per Common Share From |
|
$ |
0.51 |
|
$ |
0.04 |
|
$ |
0.47 |
|
|
|
|
|
|
|
|
|
|
|||
|
Diluted Earnings Per Common Share From |
|
— |
|
0.04 |
|
0.04 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Diluted Earnings Per Common Share |
|
$ |
0.51 |
|
$ |
— |
|
$ |
0.51 |
|
|
|
|
|
|
|
|
|
|
|||
|
Average Number of Common Shares Outstanding Plus Dilutive Common Stock Options |
|
1,568,097,000 |
|
|
|
1,568,097,000 |
|
|||
2
Abbott Laboratories and Subsidiaries
Consolidated Statement of Earnings
Adjusted for Hospira Discontinued Operations
Second Quarter Ended June 30, 2003
(unaudited)
|
|
|
As Reported |
|
Amounts
Transferred to |
|
As Adjusted |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Net Sales |
|
$ |
4,723,635,000 |
|
$ |
597,376,000 |
|
$ |
4,126,259,000 |
|
|
Cost of products sold |
|
2,270,855,000 |
|
422,474,000 |
|
1,848,381,000 |
|
|||
|
Research & development |
|
402,753,000 |
|
23,933,000 |
|
378,820,000 |
|
|||
|
Acquired in-process research and development |
|
39,000,000 |
|
— |
|
39,000,000 |
|
|||
|
Selling, general & administrative |
|
1,685,886,000 |
|
54,247,000 |
|
1,631,639,000 |
|
|||
|
Total Operating Cost and Expenses |
|
4,398,494,000 |
|
500,654,000 |
|
3,897,840,000 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Operating earnings |
|
325,141,000 |
|
96,722,000 |
|
228,419,000 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Net interest (income) expense |
|
38,384,000 |
|
(34,000 |
) |
38,418,000 |
|
|||
|
Net foreign exchange (gain) loss |
|
9,064,000 |
|
(620,000 |
) |
9,684,000 |
|
|||
|
(Income) from TAP Pharmaceutical Products Inc. joint venture |
|
(132,542,000 |
) |
— |
|
(132,542,000 |
) |
|||
|
Other (income) expense, net |
|
(6,998,000 |
) |
1,632,000 |
|
(8,630,000 |
) |
|||
|
Earnings From Continuing Operations Before Taxes |
|
417,233,000 |
|
95,744,000 |
|
321,489,000 |
|
|||
|
Taxes On Earnings From Continuing Operations |
|
170,590,000 |
|
28,244,000 |
|
142,346,000 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Earnings From Continuing Operations |
|
246,643,000 |
|
67,500,000 |
|
179,143,000 |
|
|||
|
Earnings From Discontinued Operations, net of taxes |
|
— |
|
67,500,000 |
|
67,500,000 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Net Earnings |
|
$ |
246,643,000 |
|
$ |
— |
|
$ |
246,643,000 |
|
|
|
|
|
|
|
|
|
|
|||
|
Earnings From Continuing Operations Excluding One-Time Charges, described below |
|
|
|
|
|
$ |
752,304,000 |
(a) |
||
|
|
|
|
|
|
|
|
|
|||
|
Diluted Earnings Per Common Share From Continuing Operations |
|
$ |
0.16 |
|
$ |
0.05 |
|
$ |
0.11 |
|
|
|
|
|
|
|
|
|
|
|||
|
Diluted Earnings Per Common Share From Discontinued Operations |
|
— |
|
0.05 |
|
0.05 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Diluted Earnings Per Common Share |
|
$ |
0.16 |
|
$ |
— |
|
$ |
0.16 |
|
|
|
|
|
|
|
|
|
|
|||
|
Diluted Earnings Per Common Share From
Continuing Operations Excluding |
|
|
|
|
|
$ |
0.47 |
(a) |
||
|
|
|
|
|
|
|
|
|
|||
|
Average Number of Common Shares Outstanding Plus Dilutive Common Stock Options |
|
1,572,310,000 |
|
|
|
1,572,310,000 |
|
|||
(a) Excludes after-tax charges of $37 million or $0.02 per share for in-process R&D related to the acquisitions of JOMED’s coronary/peripheral interventional business and Spinal Concepts, and $536 million or $0.34 per share for the settlement of the Ross enteral nutrition investigation. The pretax impact of the one-time charges by Consolidated Statement of Earnings line item is as follows: $8 million for Cost of products sold, $39 million for Acquired in-process research and development and $614 million for Selling, general and administrative.
3
Abbott Laboratories and Subsidiaries
Consolidated Statement of Earnings
Adjusted for Hospira Discontinued Operations
Third Quarter Ended September 30, 2003
(unaudited)
|
|
|
As Reported |
|
Amounts
Transferred to |
|
As Adjusted |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Net Sales |
|
$ |
4,845,881,000 |
|
$ |
598,026,000 |
|
$ |
4,247,855,000 |
|
|
Cost of products sold |
|
2,346,807,000 |
|
418,011,000 |
|
1,928,796,000 |
|
|||
|
Research & development |
|
438,999,000 |
|
29,729,000 |
|
409,270,000 |
|
|||
|
Acquired in-process research and development |
|
61,240,000 |
|
— |
|
61,240,000 |
|
|||
|
Selling, general & administrative |
|
1,087,796,000 |
|
60,022,000 |
|
1,027,774,000 |
|
|||
|
Total Operating Cost and Expenses |
|
3,934,842,000 |
|
507,762,000 |
|
3,427,080,000 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Operating earnings |
|
911,039,000 |
|
90,264,000 |
|
820,775,000 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Net interest (income) expense |
|
36,224,000 |
|
(42,000 |
) |
36,266,000 |
|
|||
|
Net foreign exchange (gain) loss |
|
5,573,000 |
|
(63,000 |
) |
5,636,000 |
|
|||
|
(Income) from TAP Pharmaceutical Products Inc. joint venture |
|
(142,821,000 |
) |
— |
|
(142,821,000 |
) |
|||
|
Other (income) expense, net |
|
(8,578,000 |
) |
(1,338,000 |
) |
(7,240,000 |
) |
|||
|
Earnings From Continuing Operations Before Taxes |
|
1,020,641,000 |
|
91,707,000 |
|
928,934,000 |
|
|||
|
Taxes On Earnings From Continuing Operations |
|
259,424,000 |
|
27,965,000 |
|
231,459,000 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Earnings From Continuing Operations |
|
761,217,000 |
|
63,742,000 |
|
697,475,000 |
|
|||
|
Earnings From Discontinued Operations, net of taxes |
|
— |
|
63,742,000 |
|
63,742,000 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Net Earnings |
|
$ |
761,217,000 |
|
$ |
— |
|
$ |
761,217,000 |
|
|
|
|
|
|
|
|
|
|
|||
|
Earnings From Continuing Operations Excluding One-Time Charges, described below |
|
|
|
|
|
$ |
768,429,000 |
(a) |
||
|
|
|
|
|
|
|
|
|
|||
|
Diluted Earnings Per Common Share From Continuing Operations |
|
$ |
0.48 |
|
$ |
0.04 |
|
$ |
0.44 |
|
|
|
|
|
|
|
|
|
|
|||
|
Diluted Earnings Per Common Share From Discontinued Operations |
|
— |
|
0.04 |
|
0.04 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Diluted Earnings Per Common Share |
|
$ |
0.48 |
|
$ |
— |
|
$ |
0.48 |
|
|
|
|
|
|
|
|
|
|
|||
|
Diluted Earnings Per Common Share From
Continuing Operations Excluding |
|
|
|
|
|
$ |
0.49 |
(a) |
||
|
|
|
|
|
|
|
|
|
|||
|
Average Number of Common Shares Outstanding Plus Dilutive Common Stock Options |
|
1,572,105,000 |
|
|
|
1,572,105,000 |
|
|||
(a) Excludes after-tax charges of $61 million or $0.04 per share for in-process R&D related to the acquisition of Integrated Vascular Systems Inc. and $10 million or $0.01 per share for after-tax integration charges related to 2003 acquisitions ($4 million) and transition/separation charges from the Hospira spin-off ($6 million). The pretax impact of one-time charges by Consolidated Statement of Earnings line item is as follows: $8 million for Cost of products sold, $61 million for Acquired in-process research and development and $6 million for Selling, general and administrative.
4
Abbott Laboratories and Subsidiaries
Consolidated Statement of Earnings
Adjusted for Hospira Discontinued Operations
Fourth Quarter Ended December 31, 2003
(unaudited)
|
|
|
As Reported |
|
Amounts
Transferred to |
|
As Adjusted |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Net Sales |
|
$ |
5,530,582,000 |
|
$ |
633,304,000 |
|
$ |
4,897,278,000 |
|
|
Cost of products sold |
|
2,658,013,000 |
|
460,868,000 |
|
2,197,145,000 |
|
|||
|
Research & development |
|
485,693,000 |
|
36,693,000 |
|
449,000,000 |
|
|||
|
Selling, general & administrative |
|
1,281,014,000 |
|
71,780,000 |
|
1,209,234,000 |
|
|||
|
Total Operating Cost and Expenses |
|
4,424,720,000 |
|
569,341,000 |
|
3,855,379,000 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Operating earnings |
|
1,105,862,000 |
|
63,963,000 |
|
1,041,899,000 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Net interest (income) expense |
|
34,225,000 |
|
(132,000 |
) |
34,357,000 |
|
|||
|
Net foreign exchange (gain) loss |
|
5,465,000 |
|
(1,021,000 |
) |
6,486,000 |
|
|||
|
(Income) from TAP Pharmaceutical Products Inc. joint venture |
|
(173,499,000 |
) |
— |
|
(173,499,000 |
) |
|||
|
Other (income) expense, net |
|
(2,949,000 |
) |
507,000 |
|
(3,456,000 |
) |
|||
|
Earnings From Continuing Operations Before Taxes |
|
1,242,620,000 |
|
64,609,000 |
|
1,178,011,000 |
|
|||
|
Taxes On Earnings From Continuing Operations |
|
298,228,000 |
|
14,463,000 |
|
283,765,000 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Earnings From Continuing Operations |
|
944,392,000 |
|
50,146,000 |
|
894,246,000 |
|
|||
|
Earnings From Discontinued Operations, net of taxes |
|
— |
|
50,146,000 |
|
50,146,000 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Net Earnings |
|
$ |
944,392,000 |
|
$ |
— |
|
$ |
944,392,000 |
|
|
|
|
|
|
|
|
|
|
|||
|
Earnings From Continuing Operations Excluding One-Time Charges, described below |
|
|
|
|
|
$ |
964,093,000 |
(a) |
||
|
|
|
|
|
|
|
|
|
|||
|
Diluted Earnings Per Common Share From Continuing Operations |
|
$ |
0.60 |
|
$ |
0.03 |
|
$ |
0.57 |
|
|
|
|
|
|
|
|
|
|
|||
|
Diluted Earnings Per Common Share From Discontinued Operations |
|
— |
|
0.03 |
|
0.03 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Diluted Earnings Per Common Share |
|
$ |
0.60 |
|
$ |
— |
|
$ |
0.60 |
|
|
|
|
|
|
|
|
|
|
|||
|
Diluted Earnings Per Common Share From
Continuing Operations Excluding |
|
|
|
|
|
$ |
0.62 |
(a) |
||
|
|
|
|
|
|
|
|
|
|||
|
Average Number of Common Shares Outstanding Plus Dilutive Common Stock Options |
|
1,574,575,000 |
|
|
|
1,574,575,000 |
|
|||
(a) Excludes after-tax charges of $70 million or $0.05 per share related to asset impairments and related costs ($67 million) and transition/separation charges from the spin-off of Hospira and integration charges for 2003 acquisitions ($3 million). The pre-tax impact of one-time charges by Consolidated Statement of Earnings line item is as follows: $88 million for Cost of products sold and $7 million for Selling general and administrative.
5
Abbott Laboratories and Subsidiaries
Consolidated Statement of Earnings
Adjusted for Hospira Discontinued Operations
Full Year 2003
(unaudited)
|
|
|
As Reported |
|
Amounts
Transferred to |
|
As Adjusted |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Net Sales |
|
$ |
19,680,561,000 |
|
$ |
2,400,228,000 |
|
$ |
17,280,333,000 |
|
|
Cost of products sold |
|
9,473,416,000 |
|
1,699,177,000 |
|
7,774,239,000 |
|
|||
|
Research & development |
|
1,733,472,000 |
|
109,720,000 |
|
1,623,752,000 |
|
|||
|
Acquired in-process research and development |
|
100,240,000 |
|
— |
|
100,240,000 |
|
|||
|
Selling, general & administrative |
|
5,050,901,000 |
|
242,811,000 |
|
4,808,090,000 |
|
|||
|
Total Operating Cost and Expenses |
|
16,358,029,000 |
|
2,051,708,000 |
|
14,306,321,000 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Operating earnings |
|
3,322,532,000 |
|
348,520,000 |
|
2,974,012,000 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Net interest (income) expense |
|
146,123,000 |
|
(242,000 |
) |
146,365,000 |
|
|||
|
Net foreign exchange (gain) loss |
|
55,298,000 |
|
(1,750,000 |
) |
57,048,000 |
|
|||
|
(Income) from TAP Pharmaceutical Products Inc. joint venture |
|
(580,950,000 |
) |
— |
|
(580,950,000 |
) |
|||
|
Other (income) expense, net |
|
(32,356,000 |
) |
3,246,000 |
|
(35,602,000 |
) |
|||
|
Earnings From Continuing Operations Before Taxes |
|
3,734,417,000 |
|
347,266,000 |
|
3,387,151,000 |
|
|||
|
Taxes On Earnings From Continuing Operations |
|
981,184,000 |
|
98,758,000 |
|
882,426,000 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Earnings From Continuing Operations |
|
2,753,233,000 |
|
248,508,000 |
|
2,504,725,000 |
|
|||
|
Earnings From Discontinued Operations, net of taxes |
|
— |
|
248,508,000 |
|
248,508,000 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Net Earnings |
|
$ |
2,753,233,000 |
|
$ |
— |
|
$ |
2,753,233,000 |
|
|
|
|
|
|
|
|
|
|
|||
|
Earnings From Continuing Operations Excluding One-Time Charges, described below |
|
|
|
|
|
$ |
3,218,687,000 |
(a) |
||
|
|
|
|
|
|
|
|
|
|||
|
Diluted Earnings Per Common Share From Continuing Operations |
|
$ |
1.75 |
|
$ |
0.16 |
|
$ |
1.59 |
|
|
|
|
|
|
|
|
|
|
|||
|
Diluted Earnings Per Common Share From Discontinued Operations |
|
— |
|
$ |
0.16 |
|
$ |
0.16 |
|
|
|
|
|
|
|
|
|
|
|
|||
|
Diluted Earnings Per Common Share |
|
$ |
1.75 |
|
$ |
— |
|
$ |
1.75 |
|
|
|
|
|
|
|
|
|
|
|||
|
Diluted Earnings Per Common Share From
Continuing Operations Excluding |
|
|
|
|
|
$ |
2.05 |
(a) |
||
|
|
|
|
|
|
|
|
|
|||
|
Average Number of Common Shares Outstanding Plus Dilutive Common Stock Options |
|
1,571,869,000 |
|
|
|
1,571,869,000 |
|
|||
(a) Excludes after-tax charges of $98 million or $0.06 per share for in-process R&D related to acquisitions; $536 million or $0.34 per share for the Ross settlement; $13 million or $0.02 per share for integration charges related to 2003 acquisitions ($7 million) and transition/separation charges from the Hospira spin-off ($6 million); and $67 million or $0.04 per share related to an impairment of assets and related costs. The pretax impact of one-time charges by Consolidated Statement of Earnings line item is as follows: $104 million for Cost of products sold, $100 million for Acquired in-process research and development and $627 million for Selling, general and administrative.
6
Abbott Laboratories and Subsidiaries
Consolidated Statement of Earnings
Adjusted for Hospira Discontinued Operations
First Quarter Ended March 31, 2004
(unaudited)
|
|
|
As Reported |
|
Amounts
Transferred to |
|
As Adjusted |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Net Sales |
|
$ |
5,216,053,000 |
|
$ |
575,198,000 |
|
$ |
4,640,855,000 |
|
|
Cost of products sold |
|
2,480,281,000 |
|
406,859,000 |
|
2,073,422,000 |
|
|||
|
Research & development |
|
429,024,000 |
|
24,446,000 |
|
404,578,000 |
|
|||
|
Acquired in-process research and development |
|
59,900,000 |
|
— |
|
59,900,000 |
|
|||
|
Selling, general & administrative |
|
1,214,682,000 |
|
61,867,000 |
|
1,152,815,000 |
|
|||
|
Total Operating Cost and Expenses |
|
4,183,887,000 |
|
493,172,000 |
|
3,690,715,000 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Operating earnings |
|
1,032,166,000 |
|
82,026,000 |
|
950,140,000 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Net interest (income) expense |
|
35,345,000 |
|
(96,000 |
) |
35,441,000 |
|
|||
|
Net foreign exchange (gain) loss |
|
4,456,000 |
|
(21,000 |
) |
4,477,000 |
|
|||
|
(Income) from TAP Pharmaceutical Products Inc. joint venture |
|
(101,673,000 |
) |
— |
|
(101,673,000 |
) |
|||
|
Other (income) expense, net |
|
(15,346,000 |
) |
985,000 |
|
(16,331,000 |
) |
|||
|
Earnings From Continuing Operations Before Taxes |
|
1,109,384,000 |
|
81,158,000 |
|
1,028,226,000 |
|
|||
|
Taxes On Earnings From Continuing Operations |
|
286,475,000 |
|
20,524,000 |
|
265,951,000 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Earnings From Continuing Operations |
|
822,909,000 |
|
60,634,000 |
|
762,275,000 |
|
|||
|
Earnings From Discontinued Operations, net of taxes |
|
— |
|
60,634,000 |
|
60,634,000 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Net Earnings |
|
$ |
822,909,000 |
|
$ |
— |
|
$ |
822,909,000 |
|
|
|
|
|
|
|
|
|
|
|||
|
Earnings From Continuing Operations Excluding One-Time Charges, described below |
|
|
|
|
|
$ |
831,941,000 |
(a) |
||
|
|
|
|
|
|
|
|
|
|||
|
Diluted Earnings Per Common Share From Continuing Operations |
|
$ |
0.52 |
|
$ |
0.04 |
|
$ |
0.48 |
|
|
|
|
|
|
|
|
|
|
|||
|
Diluted Earnings Per Common Share From Discontinued Operations |
|
— |
|
0.04 |
|
0.04 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Diluted Earnings Per Common Share |
|
$ |
0.52 |
|
$ |
— |
|
$ |
0.52 |
|
|
|
|
|
|
|
|
|
|
|||
|
Diluted Earnings Per Common Share From Continuing Operations Excluding One-Time Charges, described below |
|
|
|
|
|
$ |
0.53 |
(a) |
||
|
|
|
|
|
|
|
|
|
|||
|
Average Number of Common Shares Outstanding Plus Dilutive Common Stock Options |
|
1,572,119,000 |
|
|
|
1,572,119,000 |
|
|||
(a) Excludes after-tax charges of $60 million or $0.04 per share for Acquired in-process R&D related to the acquisition of i-STAT and $10 million or $0.01 per share relating to acquisition-related charges and transition/separation charges from the Hospira spin-off. The pretax impact of one-time charges by Consolidated Statement of Earnings line item is as follows: $3 million for Cost of products sold, $60 million for Acquired in-process research and development, $8 million for Selling, general and administrative and $2 million for Other (income) expense, net.
7
The following schedule details Abbott’s sales as reported before the spin-off, explains the products that have been reclassified, identifies the amounts transferred to Hospira and provides the resulting sales incorporating these reclassifications and transfers (dollars in millions):
1Q03
|
|
|
As
Reported |
|
Reclassifications |
|
Transferred |
|
As Adjusted |
|
||||
|
U.S. Pharmaceutical Sales |
|
$ |
1,074 |
|
$ |
181 |
(a) |
$ |
— |
|
$ |
1,255 |
|
|
U.S. Hospital Products Sales |
|
717 |
|
(227 |
) |
(490 |
)(b) |
— |
|
||||
|
Ross Products (U.S.) Sales |
|
601 |
|
— |
|
— |
|
601 |
|
||||
|
Worldwide Diagnostic Sales |
|
723 |
|
— |
|
— |
|
723 |
|
||||
|
International Division Sales |
|
|
|
|
|
|
|
|
|
||||
|
International Pharmaceuticals |
|
800 |
|
112 |
(c) |
— |
|
912 |
|
||||
|
International Hospital Products |
|
193 |
|
(112 |
) |
(81 |
)(b) |
— |
|
||||
|
International Nutritionals |
|
346 |
|
— |
|
— |
|
346 |
|
||||
|
Other Sales |
|
126 |
|
46 |
(d) |
— |
|
172 |
|
||||
|
1Q03 Total Sales |
|
$ |
4,580 |
|
$ |
— |
|
$ |
(571 |
) |
$ |
4,009 |
|
2Q03
|
|
|
As
Reported |
|
Reclassifications |
|
Transferred |
|
As Adjusted |
|
||||
|
U.S. Pharmaceutical Sales |
|
$ |
1,264 |
|
$ |
200 |
(a) |
$ |
— |
|
$ |
1,464 |
|
|
U.S. Hospital Products Sales |
|
748 |
|
(240 |
) |
(508 |
)(b) |
— |
|
||||
|
Ross Products (U.S.) Sales |
|
478 |
|
— |
|
— |
|
478 |
|
||||
|
Worldwide Diagnostic Sales |
|
756 |
|
— |
|
— |
|
756 |
|
||||
|
International Division Sales |
|
|
|
|
|
|
|
|
|
||||
|
International Pharmaceuticals |
|
841 |
|
136 |
(c) |
— |
|
977 |
|
||||
|
International Hospital Products |
|
226 |
|
(136 |
) |
(90 |
)(b) |
— |
|
||||
|
International Nutritionals |
|
333 |
|
— |
|
— |
|
333 |
|
||||
|
Other Sales |
|
78 |
|
40 |
(d) |
— |
|
118 |
|
||||
|
2Q03 Total Sales |
|
$ |
4,724 |
|
$ |
— |
|
$ |
(598 |
) |
$ |
4,126 |
|
3Q03
|
|
|
As
Reported |
|
Reclassifications |
|
Transferred |
|
As Adjusted |
|
||||
|
U.S. Pharmaceutical Sales |
|
$ |
1,287 |
|
$ |
215 |
(a) |
$ |
— |
|
$ |
1,502 |
|
|
U.S. Hospital Products Sales |
|
791 |
|
(277 |
) |
(514 |
)(b) |
— |
|
||||
|
Ross Products (U.S.) Sales |
|
519 |
|
— |
|
— |
|
519 |
|
||||
|
Worldwide Diagnostic Sales |
|
756 |
|
— |
|
— |
|
756 |
|
||||
|
International Division Sales |
|
|
|
|
|
|
|
|
|
||||
|
International Pharmaceuticals |
|
814 |
|
134 |
(c) |
— |
|
948 |
|
||||
|
International Hospital Products |
|
220 |
|
(134 |
) |
(86 |
)(b) |
— |
|
||||
|
International Nutritionals |
|
325 |
|
— |
|
— |
|
325 |
|
||||
|
Other Sales |
|
134 |
|
62 |
(d) |
2 |
(b) |
198 |
|
||||
|
3Q03 Total Sales |
|
$ |
4,846 |
|
$ |
— |
|
$ |
(598 |
) |
$ |
4,248 |
|
8
4Q03
|
|
|
As
Reported |
|
Reclassifications |
|
Transferred |
|
As Adjusted |
|
||||
|
U.S. Pharmaceutical Sales |
|
$ |
1,595 |
|
$ |
235 |
(a) |
$ |
— |
|
$ |
1,830 |
|
|
U.S. Hospital Products Sales |
|
822 |
|
(296 |
) |
(526 |
)(b) |
— |
|
||||
|
Ross Products (U.S.) Sales |
|
538 |
|
— |
|
— |
|
538 |
|
||||
|
Worldwide Diagnostic Sales |
|
805 |
|
— |
|
— |
|
805 |
|
||||
|
International Division Sales |
|
|
|
|
|
|
|
|
|
||||
|
International Pharmaceuticals |
|
939 |
|
134 |
(c) |
— |
|
1,073 |
|
||||
|
International Hospital Products |
|
241 |
|
(134 |
) |
(107 |
)(b) |
— |
|
||||
|
International Nutritionals |
|
407 |
|
— |
|
— |
|
407 |
|
||||
|
Other Sales |
|
183 |
|
61 |
(d) |
— |
|
244 |
|
||||
|
4Q03 Total Sales |
|
$ |
5,530 |
|
$ |
— |
|
$ |
(633 |
) |
$ |
4,897 |
|
FY03
|
|
|
As
Reported |
|
Reclassifications |
|
Transferred |
|
As Adjusted |
|
||||
|
U.S. Pharmaceutical Sales |
|
$ |
5,220 |
|
$ |
831 |
(a) |
$ |
— |
|
$ |
6,051 |
|
|
U.S. Hospital Products Sales |
|
3,078 |
|
(1,040 |
) |
(2,038 |
)(b) |
— |
|
||||
|
Ross Products (U.S.) Sales |
|
2,136 |
|
— |
|
— |
|
2,136 |
|
||||
|
Worldwide Diagnostic Sales |
|
3,040 |
|
— |
|
— |
|
3,040 |
|
||||
|
International Division Sales |
|
|
|
|
|
|
|
|
|
||||
|
International Pharmaceuticals |
|
3,394 |
|
516 |
(c) |
— |
|
3,910 |
|
||||
|
International Hospital Products |
|
880 |
|
(516 |
) |
(364 |
)(b) |
— |
|
||||
|
International Nutritionals |
|
1,411 |
|
— |
|
— |
|
1,411 |
|
||||
|
Other Sales |
|
521 |
|
209 |
(d) |
2 |
(b) |
732 |
|
||||
|
FY03 Total Sales |
|
$ |
19,680 |
|
$ |
— |
|
$ |
(2,400 |
) |
$ |
17,280 |
|
1Q04
|
|
|
As
Reported |
|
Reclassifications |
|
Transferred |
|
As Adjusted |
|
||||
|
U.S. Pharmaceutical Sales |
|
$ |
1,561 |
|
$ |
— |
|
$ |
— |
|
$ |
1,561 |
|
|
U.S. Hospital Products Sales |
|
487 |
|
— |
|
(487 |
)(b) |
— |
|
||||
|
Ross Products (U.S.) Sales |
|
666 |
|
— |
|
— |
|
666 |
|
||||
|
Worldwide Diagnostic Sales |
|
759 |
|
— |
|
— |
|
759 |
|
||||
|
International Division Sales |
|
|
|
|
|
|
|
|
|
||||
|
International Pharmaceuticals |
|
966 |
|
131 |
(c) |
— |
|
1,097 |
|
||||
|
International Hospital Products |
|
219 |
|
(131 |
) |
(88 |
)(b) |
— |
|
||||
|
International Nutritionals |
|
407 |
|
— |
|
— |
|
407 |
|
||||
|
Other Sales |
|
151 |
|
— |
|
— |
|
151 |
|
||||
|
1Q04 Total Sales |
|
$ |
5,216 |
|
$ |
— |
|
$ |
(575 |
) |
$ |
4,641 |
|
(a) U.S. Pharmaceutical Sales. These amounts represent proprietary hospital pharmaceuticals, such as the anesthesia agent, Ultane® (sevoflurane); neuromuscular blockers and pain management products; as well as the vitamin D therapy, Zemplar® (paricalcitol injection), that were previously part of U.S. Hospital Products sales.
(b) Hospital Products Sales. Most of the U.S. Hospital Products sales were spun off as the major operating component of Hospira, with the remainder moving to U.S. Pharmaceutical sales and Other sales as described in footnotes A and D. A similar transfer of Hospital Products sales occurred within the International Division, described in footnote C below.
(c) International Division Sales. The pharmaceuticals component of this division now includes the reclassification of hospital pharmaceuticals that were previously part of the hospital component of the International Division. This primarily represents the sales of anesthesia products, including Sevorane® (sevoflurane).
(d) Other Sales. Abbott Vascular Devices and Spinal Concepts are now included in Other sales for segment reporting purposes. Both of these businesses were previously part of U.S. Hospital Products sales.
9
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
|
ABBOTT LABORATORIES |
||
|
|
|
||
|
|
|
||
|
|
/s/ Thomas C. Freyman |
|
|
|
|
By: |
Thomas C. Freyman |
|
|
|
|
Executive Vice President, Finance |
|
|
|
|
and Chief Financial Officer |
|
Date: June 30, 2004
10