[February 05, 2014] |
|
Allergan Reports Fourth Quarter 2013 Operating Results
IRVINE, Calif. --(Business Wire)--
Allergan, Inc. (NYSE:AGN) today announced operating results for the
quarter ended December 31, 2013. Allergan also announced that its Board
of Directors has declared a fourth quarter dividend of $0.05 per share,
payable on March 21, 2014 to stockholders of record on February 28,
2014. As a result of Allergan's sale of its obesity intervention
business unit, the financial results from that business unit are
reported as discontinued operations in the financial tables of this
press release. Prior year amounts have been retrospectively revised for
the discontinued operations.
Operating Results Attributable to Stockholders
from Continuing Operations
For the quarter ended December 31, 2013:
-
Allergan reported $1.04 diluted earnings per share attributable to
stockholders compared to $1.05 diluted earnings per share attributable
to stockholders for the fourth quarter of 2012.
-
Allergan reported $1.35 non-GAAP diluted earnings per share
attributable to stockholders compared to $1.12 non-GAAP diluted
earnings per share attributable to stockholders for the fourth quarter
of 2012, a 20.5 percent increase.
Product Sales from Continuing Operations
For the quarter ended December 31, 2013:
-
Allergan reported $1,659.6 million total product net sales. Total
product net sales increased 14.6 percent compared to total product net
sales in the fourth quarter of 2012. On a constant currency basis,
total product net sales increased 15.6 percent compared to total
product net sales in the fourth quarter of 2012.
-
Total specialty pharmaceuticals net sales increased 14.0 percent,
or 15.0 percent on a constant currency basis, compared to total
specialty pharmaceuticals net sales in the fourth quarter of 2012.
-
Total core medical devices net sales increased 17.0 percent, or
17.8 percent on a constant currency basis, compared to total core
medical devices net sales in the fourth quarter of 2012.
"We are pleased to have once again achieved our double digit revenue and
mid teens earnings per share growth aspirations for full year 2013 as we
benefited from many regulatory approvals in the past few years," said
David E.I. Pyott, Allergan's Chairman of the Board and Chief Executive
Officer. "Furthermore, we look forward to delivering similar revenue and
earnings growth in 2014."
Based on internal information and assumptions, full year 2013
therapeutic sales accounted for approximately 54% of total BOTOX®
(onabotulinumtoxinA) sales and increased approximately 17% compared to
2012. Full year 2013 aesthetic sales accounted for approximately 46% of
total BOTOX® sales and increased approximately 8% compared to 2012.
Product and Pipeline Update
During the fourth quarter of 2013:
-
On October 23, 2013, Allergan announced that it had received approval
from the U.S. Food and Drug Administration (FDA) to market JUVÉDERM
VOLUMA™ XC, the first and only filler approved to temporarily correct
age-related volume loss in the cheek area in adults over the age of 21.
-
On October 23, 2013, Allergan announced that VISTABEL® received a
Positive Opinion from the Agence Nationale de Sécurité du Médicament
et des Produits de Santé (ANSM) for the temporary improvement in the
appearance of moderate to severe lateral canthal lines (crow's feet
lines) seen at maximum smile, either alone or when treated at the same
time as glabellar (or frown) lines seen at maximum frown in adult
patients. Allergan has secured national licences in 19 countries of
the European Union, as well as in Norway and Iceland.
-
On December 2, 2013, Allergan announced that it had completed the sale
of its obesity intervention business to Apollo Endosurgery, Inc. Under
the terms of the agreement, which was first announced on October 29,
2013, Allergan received cash consideration of $75 million, subject to
certain adjustments, and a $15 million minority equity interest in
Apollo Endosurgery. Allergan may also receive up to $20 million in
contingent consideration upon the achievement of certain regulatory
and sales milestones.
-
Allergan resubmitted the New Drug Application (NDA) to the FDA seeking
approval for LEVADEX® (dihydroergotamine) inhalation aerosol for the
acute treatment of migraine in adults. This resubmission is intended
to address the concerns identified in the Complete Response Letter
received in the second quarter of 2013.
Following the end of the fourth quarter of 2013:
-
On January 7, 2014, Allergan and Medytox, Inc. announced that they
have closed the license agreement which was previously announced on
September 25, 2013. Under the terms of the agreement, Allergan paid
Medytox an upfront cash payment of U.S. $65 million and Medytox has
granted Allergan exclusive rights, worldwide outside of Korea (and
co-exclusive rights in Japan), to develop and, if approved,
commercialize certain neurotoxin product candidates currently in
development, including a potential liquid-injectable product. Pursuant
to the agreement, Allergan has also agreed to make additional
contingent payments, including up to an aggregate of U.S. $116.5
million upon achieving certain development milestones, up to an
aggregate of U.S. $180.5 million upon achieving certain
commercialization milestones, and royalties on product sales.
-
On January 14, 2014, the U.S. District Court for the Eastern District
of Texas (District Court) ruled in favor of Allergan in a patent
infringement matter concerning the Company's LUMIGAN® (bimatoprost
ophthalmic solution) 0.01% product. Allergan initiated the lawsuit
under the Hatch-Waxman Act, after the defendants, Sandoz Inc., Lupin
Ltd., Lupin Pharmaceuticals Inc., Hi-Tech Pharmacal Co., Inc., Watson
Laboratories, Inc., Watson Pharmaceuticals, Inc., and Watson Pharma,
Inc. (Defendants), sought to market a generic version of LUMIGAN®
0.01%, which was first approved by the FDA in 2010 for the reduction
of elevated intraocular pressure in patients with open-angle glaucoma
or ocular hypertension. The District Court found that all of the
asserted claims of the 5 U.S. patents in the suit are not invalid and
are infringed by Defendants' proposed generic drug products. As part
of the ruling, the District Court granted Allergan's request for a
permanent injunction enjoining the Defendants from marketing their
proposed generic drug products until the expiration of the last of the
LUMIGAN® 0.01% patents in 2027.
-
The U.S. Patent and Trademark Office has issued three patents which
cover the specific formulation and the method of using Allergan's
RESTASIS® (cyclosporine ophthalmic emulsion) 0.05% product. On the
date each patent was granted, it was submitted for listing in the
FDA's Approved Drug Products With Therapeutic Equivalence Evaluations,
commonly known as the Orange Book. These patents expire August 27,
2024. There remains uncertainty as to the status of any abbreviated
new drug application (ANDA) filers in respect to RESTASIS®. In
addition, Allergan submitted a Citizen Petition to the FDA regarding
the FDA's published draft guidance that proposes certain approaches
for demonstrating bioequivalence in an ANDA referring to the new drug
application related to the RESTASIS® product.
Outlook
For the full year of 2014, Allergan expects:
-
Total product net sales between $6,650 million and $6,950 million,
excluding any anticipated revenue from the transition service
agreements related to the sale of the obesity intervention business.
-
Total specialty pharmaceuticals net sales between $5,720 million
and $5,960 million.
-
Total core medical devices net sales between $930 million and $990
million.
-
ALPHAGAN® franchise product net sales between $460 million
and $490 million.
-
LUMIGAN® franchise product net sales between $590
million and $620 million.
-
RESTASIS® product net sales between $1,030 million and
$1,070 million.
-
BOTOX® product net sales between $2,180 million and $2,280
million.
-
LATISSE® product net sales between $100 million and $110
million.
-
Breast aesthetics product net sales between $390
million and $420 million.
-
Facial aesthetics product net sales between $540 million
and $570 million.
-
Non-GAAP cost of sales to product net sales ratio at approximately 13%.
-
Non-GAAP other revenue at approximately $100 million.
-
Non-GAAP selling, general and administrative expenses to product net
sales ratio between 37% and 38%.
-
Non-GAAP research and development expenses to product net sales ratio
at approximately 16.5%.
-
Non-GAAP diluted earnings per share attributable to stockholders
between $5.36 and $5.48.
-
Diluted shares outstanding at approximately 302 million.
-
Effective tax rate on non-GAAP earnings between 26% and 27%.
For the first quarter of 2014, Allergan expects:
-
Total product net sales between $1,525 million and $1,600 million,
excluding any anticipated revenue from the transition service
agreements related to the sale of the obesity intervention business.
-
Non-GAAP diluted earnings per share attributable to stockholders
between $1.09 and $1.12.
In this press release, Allergan reports certain historical and expected
non-GAAP results, including earnings attributable to Allergan, Inc.,
non-GAAP basic and diluted earnings per share attributable to
stockholders as well as non-GAAP other revenue, non-GAAP cost of sales,
non-GAAP selling, general and administrative expenses, non-GAAP research
and development expenses, non-GAAP amortization of intangible assets,
non-GAAP impairment of intangible assets and related costs, non-GAAP
restructuring charges, non-GAAP interest expense, non-GAAP other, net,
non-GAAP earnings before income taxes from continuing operations,
non-GAAP provision for income taxes, non-GAAP earnings from discontinued
operations, non-GAAP loss on sale of discontinued operations, non-GAAP
net earnings and non-GAAP net sales reported in constant currency.
Non-GAAP financial measures are reconciled to the most directly
comparable GAAP financial measure in the financial tables of this press
release and the accompanying footnotes. The information that accompanies
the financial tables of this press release also includes an explanation
of why Allergan uses these non-GAAP financial measures, certain
limitations associated with the use of these non-GAAP financial
measures, the manner in which Allergan management compensates for those
limitations, and the reasons why Allergan management believes that these
non-GAAP financial measures provide useful information to investors.
Forward-Looking Statements
This press release contains forward-looking statements, including but
not limited to the statements by Mr. Pyott and other statements
regarding product development, external corporate development
initiatives and strategic partnering transactions including the
transaction with Medytox, market potential, expected growth and
regulatory approvals of LEVADEX® and other products as well as
Allergan's earnings per share, product net sales, revenue forecasts and
any other statements that refer to Allergan's expected, estimated or
anticipated future results. Because forecasts are inherently estimates
that cannot be made with precision, Allergan's performance at times
differs materially from its estimates and targets, and Allergan often
does not know what the actual results will be until after the end of the
applicable reporting period. Therefore, Allergan will not report or
comment on its progress during a current quarter except through public
announcement. Any statement made by others with respect to progress
during a current quarter cannot be attributed to Allergan.
All forward-looking statements in this press release reflect Allergan's
current analysis of existing trends and information and represent
Allergan's judgment only as of the date of this press release. Actual
results may differ materially from current expectations based on a
number of factors affecting Allergan's businesses, including, among
other things, the following: changing competitive, market and regulatory
conditions; the timing and uncertainty of the results of both the
research and development and regulatory processes; domestic and foreign
health care and cost containment reforms, including government pricing,
tax and reimbursement policies; technological advances and patents
obtained by competitors; the performance, including the approval,
introduction, and consumer and physician acceptance of new products and
the continuing acceptance of currently marketed products; the
effectiveness of advertising and other promotional campaigns; the timely
and successful implementation of strategic initiatives; the results of
any pending or future litigation, investigations or claims; the
uncertainty associated with the identification of and successful
consummation and execution of external corporate development initiatives
and strategic partnering transactions; and Allergan's ability to obtain
and successfully maintain a sufficient supply of products to meet market
demand in a timely manner. In addition, U.S. and international economic
conditions, including higher unemployment, political instability,
financial hardship, consumer confidence and debt levels, taxation,
changes in interest and currency exchange rates, international
relations, capital and credit availability, the status of financial
markets and institutions, fluctuations or devaluations in the value of
sovereign government debt, as well as the general impact of continued
economic volatility, can materially affect Allergan's results.
Therefore, the reader is cautioned not to rely on these forward-looking
statements. Allergan expressly disclaims any intent or obligation to
update these forward-looking statements except as required to do so by
law.
Additional information concerning the above-referenced risk factors and
other risk factors can be found in press releases issued by Allergan, as
well as Allergan's public periodic filings with the U.S. Securities and
Exchange Commission, including the discussion under the heading "Risk
Factors" in Allergan's 2012 Annual Report on Form 10-K and any
subsequent Quarterly Reports on Form 10-Q. Copies of Allergan's press
releases and additional information about Allergan are available at www.allergan.com
or you can contact the Allergan Investor Relations Department by calling
714-246-4636.
About Allergan, Inc.
Allergan is a multi-specialty health care company established more than
60 years ago with a commitment to uncover the best of science and
develop and deliver innovative and meaningful treatments to help people
reach their life's potential. Today, we have approximately 11,400 highly
dedicated and talented employees, global marketing and sales
capabilities with a presence in more than 100 countries, a rich and
ever-evolving portfolio of pharmaceuticals, biologics, medical devices
and over-the-counter consumer products, and state-of-the-art resources
in R&D, manufacturing and safety surveillance that help millions of
patients see more clearly, move more freely and express themselves more
fully. From our beginnings as an eye care company to our focus today on
several medical specialties, including eye care, neurosciences, medical
aesthetics, medical dermatology, breast aesthetics and urologics,
Allergan is proud to celebrate more than 60 years of medical advances
and proud to support the patients and physicians who rely on our
products and the employees and communities in which we live and work.
For more information regarding Allergan, go to: www.allergan.com.
® and ™ marks owned by Allergan, Inc.
|
ALLERGAN, INC.
|
Condensed Consolidated Statements of Earnings and
|
Reconciliation of Non-GAAP Adjustments
|
(Unaudited)
|
|
|
|
|
|
Three months ended
|
In millions, except per share amounts
|
|
|
|
December 31, 2013
|
|
|
|
December 31, 2012
|
|
|
|
|
GAAP
|
|
|
|
Non-GAAP
Adjustments
|
|
|
|
|
|
|
Non-GAAP
|
|
|
|
GAAP
|
|
|
|
|
Non-GAAP
Adjustments
|
|
|
|
|
|
|
|
Non-GAAP
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product net sales
|
|
|
|
$
|
1,659.6
|
|
|
|
|
$
|
--
|
|
|
|
|
|
|
|
$
|
1,659.6
|
|
|
|
|
$
|
1,447.8
|
|
|
|
|
$
|
--
|
|
|
|
|
|
|
|
$
|
1,447.8
|
|
Other revenues
|
|
|
|
|
24.8
|
|
|
|
|
|
--
|
|
|
|
|
|
|
|
|
24.8
|
|
|
|
|
|
24.3
|
|
|
|
|
|
--
|
|
|
|
|
|
|
|
|
24.3
|
|
|
|
|
|
|
1,684.4
|
|
|
|
|
|
--
|
|
|
|
|
|
|
|
|
1,684.4
|
|
|
|
|
|
1,472.1
|
|
|
|
|
|
--
|
|
|
|
|
|
|
|
|
1,472.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales (excludes amortization of intangible assets)
|
|
|
|
|
204.6
|
|
|
|
|
|
--
|
|
|
|
|
|
|
|
|
204.6
|
|
|
|
|
|
183.0
|
|
|
|
|
|
--
|
|
|
|
|
|
|
|
|
183.0
|
|
Selling, general and administrative
|
|
|
|
|
715.4
|
|
|
|
|
|
(67.6
|
)
|
|
|
(a)(b)(c)(d)
|
|
|
|
|
647.8
|
|
|
|
|
|
542.3
|
|
|
|
|
|
|
7.2
|
|
|
|
(m)(n)(o)(p)
|
|
|
|
|
549.5
|
|
Research and development
|
|
|
|
|
269.4
|
|
|
|
|
|
(0.2
|
)
|
|
|
(d)
|
|
|
|
|
269.2
|
|
|
|
|
|
239.8
|
|
|
|
|
|
--
|
|
|
|
|
|
|
|
|
239.8
|
|
Amortization of intangible assets
|
|
|
|
|
28.2
|
|
|
|
|
|
(27.0
|
)
|
|
|
(e)
|
|
|
|
|
1.2
|
|
|
|
|
|
23.0
|
|
|
|
|
|
(17.2
|
)
|
|
|
(e)
|
|
|
|
|
5.8
|
|
Impairment of intangible assets and related costs
|
|
|
|
|
11.4
|
|
|
|
|
|
(11.4
|
)
|
|
|
(f)
|
|
|
|
|
--
|
|
|
|
|
|
22.3
|
|
|
|
|
|
(22.3
|
)
|
|
|
(q)
|
|
|
|
|
--
|
|
Restructuring charges
|
|
|
|
|
0.6
|
|
|
|
|
|
(0.6
|
)
|
|
|
(g)
|
|
|
|
|
--
|
|
|
|
|
|
--
|
|
|
|
|
|
--
|
|
|
|
|
|
|
|
|
--
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
|
454.8
|
|
|
|
|
|
106.8
|
|
|
|
|
|
|
|
|
561.6
|
|
|
|
|
|
461.7
|
|
|
|
|
|
32.3
|
|
|
|
|
|
|
|
|
494.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-operating income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
|
|
1.7
|
|
|
|
|
|
--
|
|
|
|
|
|
|
|
|
1.7
|
|
|
|
|
|
1.9
|
|
|
|
|
|
--
|
|
|
|
|
|
|
|
|
1.9
|
|
Interest expense
|
|
|
|
|
(18.2
|
)
|
|
|
|
|
0.1
|
|
|
|
(h)
|
|
|
|
|
(18.1
|
)
|
|
|
|
|
(14.8
|
)
|
|
|
|
|
0.1
|
|
|
|
(h)
|
|
|
|
|
(14.7
|
)
|
Other, net
|
|
|
|
|
2.7
|
|
|
|
|
|
(6.1
|
)
|
|
|
(i)
|
|
|
|
|
(3.4
|
)
|
|
|
|
|
(3.8
|
)
|
|
|
|
|
0.1
|
|
|
|
(i)
|
|
|
|
|
(3.7
|
)
|
|
|
|
|
|
(13.8
|
)
|
|
|
|
|
(6.0
|
)
|
|
|
|
|
|
|
|
(19.8
|
)
|
|
|
|
|
(16.7
|
)
|
|
|
|
|
0.2
|
|
|
|
|
|
|
|
|
(16.5
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations before income taxes
|
|
|
|
|
441.0
|
|
|
|
|
|
100.8
|
|
|
|
|
|
|
|
|
541.8
|
|
|
|
|
|
445.0
|
|
|
|
|
|
32.5
|
|
|
|
|
|
|
|
|
477.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
|
|
|
128.4
|
|
|
|
|
|
8.5
|
|
|
|
(j)
|
|
|
|
|
136.9
|
|
|
|
|
|
122.7
|
|
|
|
|
|
13.0
|
|
|
|
(r)
|
|
|
|
|
135.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations
|
|
|
|
|
312.6
|
|
|
|
|
|
92.3
|
|
|
|
|
|
|
|
|
404.9
|
|
|
|
|
|
322.3
|
|
|
|
|
|
19.5
|
|
|
|
|
|
|
|
|
341.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from discontinued operations, net of income tax expense of
$0.5 million and $1.5 million, respectively
|
|
|
|
|
1.0
|
|
|
|
|
|
(1.0
|
)
|
|
|
(k)
|
|
|
|
|
--
|
|
|
|
|
|
2.9
|
|
|
|
|
|
(2.9
|
)
|
|
|
(k)
|
|
|
|
|
--
|
|
Loss on sale of discontinued operations, net of income tax benefit
of $2.0 million
|
|
|
|
|
(1.3
|
)
|
|
|
|
|
1.3
|
|
|
|
(l)
|
|
|
|
|
--
|
|
|
|
|
|
--
|
|
|
|
|
|
--
|
|
|
|
|
|
|
|
|
--
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations
|
|
|
|
|
(0.3
|
)
|
|
|
|
|
0.3
|
|
|
|
|
|
|
|
|
--
|
|
|
|
|
|
2.9
|
|
|
|
|
|
(2.9
|
)
|
|
|
|
|
|
|
|
--
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
|
|
|
|
|
312.3
|
|
|
|
|
|
92.6
|
|
|
|
|
|
|
|
|
404.9
|
|
|
|
|
|
325.2
|
|
|
|
|
|
16.6
|
|
|
|
|
|
|
|
|
341.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) earnings attributable to noncontrolling interest
|
|
|
|
|
(0.6
|
)
|
|
|
|
|
--
|
|
|
|
|
|
|
|
|
(0.6
|
)
|
|
|
|
|
1.0
|
|
|
|
|
|
--
|
|
|
|
|
|
|
|
|
1.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings attributable to Allergan, Inc.
|
|
|
|
$
|
312.9
|
|
|
|
|
$
|
92.6
|
|
|
|
|
|
|
|
$
|
405.5
|
|
|
|
|
$
|
324.2
|
|
|
|
|
$
|
16.6
|
|
|
|
|
|
|
|
$
|
340.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allergan, Inc. stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
|
$
|
1.06
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1.37
|
|
|
|
|
$
|
1.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1.14
|
|
Discontinued operations
|
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
|
|
|
--
|
|
|
|
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
--
|
|
Net basic earnings per share attributable to Allergan, Inc.
stockholders
|
|
|
|
$
|
1.05
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1.37
|
|
|
|
|
$
|
1.08
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1.14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allergan, Inc. stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
|
$
|
1.04
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1.35
|
|
|
|
|
$
|
1.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1.12
|
|
Discontinued operations
|
|
|
|
|
--
|
|
|
|
|
|
|
|
|
|
|
|
|
--
|
|
|
|
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
--
|
|
Net diluted earnings per share attributable to Allergan, Inc.
stockholders
|
|
|
|
$
|
1.04
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1.35
|
|
|
|
|
$
|
1.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1.12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
296.8
|
|
|
|
|
|
|
|
|
|
|
|
|
296.8
|
|
|
|
|
|
299.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
299.8
|
|
Diluted
|
|
|
|
|
301.4
|
|
|
|
|
|
|
|
|
|
|
|
|
301.4
|
|
|
|
|
|
305.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
305.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected ratios as a percentage of product
net sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales (excludes amortization of intangible assets)
|
|
|
|
|
12.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
12.3
|
%
|
|
|
|
|
12.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12.6
|
%
|
Selling, general and administrative
|
|
|
|
|
43.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
39.0
|
%
|
|
|
|
|
37.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
38.0
|
%
|
Research and development
|
|
|
|
|
16.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
16.2
|
%
|
|
|
|
|
16.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
|
|
Expenses from changes in fair value of contingent consideration of
$65.9 million and integration and transaction costs of $1.4
million associated with business combinations
|
(b)
|
|
|
|
Net reversal of $0.5 million for external costs for stockholder
derivative litigation associated with the U.S. Department of
Justice (DOJ) settlement announced in September 2010
|
(c)
|
|
|
|
Transaction costs of $0.7 million associated with a licensing
agreement with Medytox, Inc.
|
(d)
|
|
|
|
Expenses related to the realignment of various business functions
of $0.3 million, consisting of selling, general and administrative
expenses of $0.1 million and research and development expenses of
$0.2 million
|
(e)
|
|
|
|
Amortization of certain intangible assets related to business
combinations, asset acquisitions and product licenses
|
(f)
|
|
|
|
Impairment of an intangible asset related to technology acquired
in connection with the 2011 acquisition of Precision Light, Inc.
|
(g)
|
|
|
|
Net restructuring charges
|
(h)
|
|
|
|
Interest expense associated with changes in estimated taxes
related to uncertain tax positions included in prior year filings
|
(i)
|
|
|
|
Unrealized gain (loss) on the mark-to-market adjustment to
derivative instruments
|
(j)
|
|
|
|
Total tax effect for non-GAAP pre-tax adjustments and other income
tax adjustments, consisting of the following amounts (in millions):
|
|
|
|
|
|
|
|
|
|
Tax effect
|
|
|
|
|
|
Non-GAAP pre-tax adjustments of $100.8 million
|
|
|
|
$
|
(11.3
|
)
|
|
|
|
|
|
Estimated impact of the retroactive U.S. Research and Development
tax credit for 2012
|
|
|
|
|
0.3
|
|
|
|
|
|
|
Change in estimated taxes related to uncertain tax positions
included in prior year filings
|
|
|
|
|
2.5
|
|
|
|
|
|
|
|
|
|
|
$
|
(8.5
|
)
|
(k)
|
|
|
|
Earnings from discontinued operations associated with the sale of
the obesity intervention business unit
|
(l)
|
|
|
|
Loss on the sale of discontinued operations
|
(m)
|
|
|
|
Income from changes in fair value of contingent consideration of
$10.4 million and integration and transaction costs of $1.5
million associated with business combinations
|
(n)
|
|
|
|
External costs of $0.8 million for stockholder derivative and tax
litigation costs associated with the DOJ settlement announced in
September 2010
|
(o)
|
|
|
|
Expenses related to the realignment of various business functions
of $0.7 million
|
(p)
|
|
|
|
Transaction costs of $0.2 million associated with the license and
collaboration agreements with Molecular Partners AG for technology
that has not achieved regulatory approval
|
(q)
|
|
|
|
Impairment of an in-process research and development asset related
to technology acquired in connection with the 2011 acquisition of
Vicept Therapeutics, Inc. of $17.0 million and a prepaid royalty
asset associated with the Sanctura® franchise of $5.3
million
|
(r)
|
|
|
|
Total tax effect for non-GAAP pre-tax adjustments and other income
tax adjustments, consisting of the following amounts (in millions):
|
|
|
|
|
|
|
|
|
|
Tax effect
|
|
|
|
|
|
Non-GAAP pre-tax adjustments of $32.5 million
|
|
|
|
$
|
(14.0
|
)
|
|
|
|
|
|
Change in estimated taxes related to uncertain tax positions
included in prior year filings
|
|
|
|
|
1.0
|
|
|
|
|
|
|
|
|
|
|
$
|
(13.0
|
)
|
"GAAP" refers to financial information presented in accordance with
generally accepted accounting principles in the United States.
This press release includes non-GAAP financial measures, as defined in
Regulation G promulgated by the U.S. Securities and Exchange Commission,
with respect to the three and twelve months ended December 31, 2013 and
December 31, 2012 and with respect to anticipated results for the first
quarter and full year of 2014. Allergan believes that its presentation
of non-GAAP financial measures provides useful supplementary information
to investors regarding its operational performance because it enhances
an investor's overall understanding of the financial performance and
prospects for the future of Allergan's core business activities by
providing a basis for the comparison of results of core business
operations between current, past and future periods. The presentation of
historical non-GAAP financial measures is not meant to be considered in
isolation from or as a substitute for results as reported under GAAP.
In this press release, Allergan reported the non-GAAP financial measures
"non-GAAP basic and diluted earnings per share attributable to Allergan,
Inc. stockholders" and "non-GAAP earnings attributable to Allergan,
Inc." and its subcomponents "non-GAAP other revenue," "non-GAAP cost of
sales," "non-GAAP selling, general and administrative expenses,"
"non-GAAP research and development expenses," "non-GAAP amortization of
intangible assets," "non-GAAP impairment of intangible assets and
related costs," "non-GAAP restructuring charges," "non-GAAP operating
income," "non-GAAP interest expense," "non-GAAP other, net," "non-GAAP
earnings from continuing operations before income taxes," "non-GAAP
provision for income taxes," "non-GAAP earnings from discontinued
operations," "non-GAAP loss on sale of discontinued operations," and
"non-GAAP net earnings." Allergan uses non-GAAP earnings to enhance the
investor's overall understanding of the financial performance and
prospects for the future of Allergan's core business activities.
Non-GAAP earnings is one of the primary indicators management uses for
planning and forecasting in future periods, including trending and
analyzing the core operating performance of Allergan's business from
period to period without the effect of the non-core business items
indicated. Management uses non-GAAP earnings to prepare operating
budgets and forecasts and to measure Allergan's performance against
those budgets and forecasts on a corporate and segment level. Allergan
also uses non-GAAP earnings for evaluating management performance for
compensation purposes.
Despite the importance of non-GAAP earnings in analyzing Allergan's
underlying business, the budgeting and forecasting process and designing
incentive compensation, non-GAAP earnings has no standardized meaning
defined by GAAP. Therefore, non-GAAP earnings has limitations as an
analytical tool, and should not be considered in isolation, or as a
substitute for analysis of Allergan's results as reported under GAAP.
Some of these limitations are:
-
it does not reflect cash expenditures, or future requirements, for
expenditures relating to restructurings, legal settlements, and
certain acquisitions, including severance and facility transition
costs associated with acquisitions;
-
it does not reflect asset impairment charges or gains or losses on the
disposition of assets associated with restructuring and business exit
activities;
-
it does not reflect the tax benefit or tax expense associated with the
items indicated;
-
it does not reflect the impact on earnings of charges or income
resulting from certain matters Allergan considers not to be indicative
of its on-going operations; and
-
other companies in Allergan's industry may calculate non-GAAP earnings
differently than it does, which may limit its usefulness as a
comparative measure.
Allergan compensates for these limitations by using non-GAAP earnings
only to supplement net earnings on a basis prepared in conformance with
GAAP in order to provide a more complete understanding of the factors
and trends affecting its business. Allergan strongly encourages
investors to consider both net earnings and cash flows determined under
GAAP as compared to non-GAAP earnings, and to perform their own
analysis, as appropriate.
In this press release, Allergan also reported sales performance using
the non-GAAP financial measure of constant currency sales. Constant
currency sales represent current period reported sales adjusted for the
translation effect of changes in average foreign exchange rates between
the current period and the corresponding period in the prior year.
Allergan calculates the currency effect by comparing adjusted current
period reported amounts, calculated using the monthly average foreign
exchange rates for the corresponding period in the prior year, to the
actual current period reported amounts. Management refers to growth
rates at constant currency so that sales results can be viewed without
the impact of changing foreign currency exchange rates, thereby
facilitating period-to-period comparisons of Allergan's sales.
Generally, when the dollar either strengthens or weakens against other
currencies, the growth at constant currency rates will be higher or
lower, respectively, than growth reported at actual exchange rates.
Reporting sales performance using constant currency sales has the
limitation of excluding currency effects from the comparison of sales
results over various periods, even though the effect of changing foreign
currency exchange rates has an actual effect on Allergan's operating
results. Investors should consider these effects in their overall
analysis of Allergan's operating results.
|
|
ALLERGAN, INC.
|
Condensed Consolidated Statements of Earnings and
|
Reconciliation of Non-GAAP Adjustments
|
(Unaudited)
|
|
|
|
|
|
|
Twelve months ended
|
In millions, except per share amounts
|
|
|
|
December 31, 2013
|
|
|
|
December 31, 2012
|
|
|
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
|
Adjustments
|
|
|
|
|
|
|
Non-GAAP
|
|
|
|
GAAP
|
|
|
|
Adjustments
|
|
|
|
|
|
|
Non-GAAP
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product net sales
|
|
|
|
$
|
6,197.5
|
|
|
|
|
$
|
--
|
|
|
|
|
|
|
|
$
|
6,197.5
|
|
|
|
|
$
|
5,549.3
|
|
|
|
|
$
|
--
|
|
|
|
|
|
|
|
$
|
5,549.3
|
|
Other revenues
|
|
|
|
|
102.9
|
|
|
|
|
|
--
|
|
|
|
|
|
|
|
|
102.9
|
|
|
|
|
|
97.3
|
|
|
|
|
|
--
|
|
|
|
|
|
|
|
|
97.3
|
|
|
|
|
|
|
6,300.4
|
|
|
|
|
|
--
|
|
|
|
|
|
|
|
|
6,300.4
|
|
|
|
|
|
5,646.6
|
|
|
|
|
|
--
|
|
|
|
|
|
|
|
|
5,646.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales (excludes amortization of intangible assets)
|
|
|
|
|
795.8
|
|
|
|
|
|
(9.0
|
)
|
|
|
|
(a)(b)
|
|
|
|
|
|
|
786.8
|
|
|
|
|
|
751.2
|
|
|
|
|
|
(0.4
|
)
|
|
|
(q)(r)
|
|
|
|
|
750.8
|
|
Selling, general and administrative
|
|
|
|
|
2,519.4
|
|
|
|
|
|
(96.1
|
)
|
|
|
|
(b)(c)(d)(e)(f)
|
|
|
|
|
|
|
2,423.3
|
|
|
|
|
|
2,193.1
|
|
|
|
|
|
(18.9
|
)
|
|
|
(r)(s)(t)(u)
|
|
|
|
|
2,174.2
|
|
Research and development
|
|
|
|
|
1,042.3
|
|
|
|
|
|
(7.6
|
)
|
|
|
|
(e)(f)
|
|
|
|
|
|
|
1,034.7
|
|
|
|
|
|
977.3
|
|
|
|
|
|
(62.8
|
)
|
|
|
(t)(u)
|
|
|
|
|
914.5
|
|
Amortization of intangible assets
|
|
|
|
|
116.7
|
|
|
|
|
|
(107.4
|
)
|
|
|
|
(g)
|
|
|
|
|
|
|
9.3
|
|
|
|
|
|
90.2
|
|
|
|
|
|
(66.7
|
)
|
|
|
(g)
|
|
|
|
|
23.5
|
|
Impairment of intangible assets and related costs
|
|
|
|
|
11.4
|
|
|
|
|
|
(11.4
|
)
|
|
|
|
(h)
|
|
|
|
|
|
|
--
|
|
|
|
|
|
22.3
|
|
|
|
|
|
(22.3
|
)
|
|
|
(v)
|
|
|
|
|
--
|
|
Restructuring charges
|
|
|
|
|
5.5
|
|
|
|
|
|
(5.5
|
)
|
|
|
|
(i)
|
|
|
|
|
|
|
--
|
|
|
|
|
|
1.5
|
|
|
|
|
|
(1.5
|
)
|
|
|
(i)
|
|
|
|
|
--
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
|
1,809.3
|
|
|
|
|
|
237.0
|
|
|
|
|
|
|
|
|
2,046.3
|
|
|
|
|
|
1,611.0
|
|
|
|
|
|
172.6
|
|
|
|
|
|
|
|
|
1,783.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-operating income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
|
|
6.8
|
|
|
|
|
|
--
|
|
|
|
|
|
|
|
|
6.8
|
|
|
|
|
|
6.7
|
|
|
|
|
|
--
|
|
|
|
|
|
|
|
|
6.7
|
|
Interest expense
|
|
|
|
|
(75.0
|
)
|
|
|
|
|
0.4
|
|
|
|
(j)
|
|
|
|
|
|
|
(74.6
|
)
|
|
|
|
|
(63.6
|
)
|
|
|
|
|
0.9
|
|
|
|
(j)
|
|
|
|
|
(62.7
|
)
|
Other, net
|
|
|
|
|
(10.3
|
)
|
|
|
|
|
(7.4
|
)
|
|
|
|
(k)(l)(m)
|
|
|
|
|
|
|
(17.7
|
)
|
|
|
|
|
(23.1
|
)
|
|
|
|
|
15.3
|
|
|
|
(w)
|
|
|
|
|
(7.8
|
)
|
|
|
|
|
|
(78.5
|
)
|
|
|
|
|
(7.0
|
)
|
|
|
|
|
|
|
|
|
(85.5
|
)
|
|
|
|
|
(80.0
|
)
|
|
|
|
|
16.2
|
|
|
|
|
|
|
|
|
(63.8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations before income taxes
|
|
|
|
|
1,730.8
|
|
|
|
|
|
230.0
|
|
|
|
|
|
|
|
|
1,960.8
|
|
|
|
|
|
1,531.0
|
|
|
|
|
|
188.8
|
|
|
|
|
|
|
|
|
1,719.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
|
|
|
458.3
|
|
|
|
|
59.8
|
|
|
|
|
(n)
|
|
|
|
|
518.1
|
|
|
|
|
|
430.3
|
|
|
|
|
|
45.2
|
|
|
|
(x)
|
|
|
|
|
475.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations
|
|
|
|
|
1,272.5
|
|
|
|
|
|
170.2
|
|
|
|
|
|
|
|
|
1,442.7
|
|
|
|
|
|
1,100.7
|
|
|
|
|
|
143.6
|
|
|
|
|
|
|
|
|
1,244.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from discontinued operations, net of income tax expense
of $6.9 million and $0.5 million, respectively
|
|
|
|
|
14.1
|
|
|
|
|
(14.1
|
)
|
|
|
|
(o)
|
|
|
|
|
--
|
|
|
|
|
|
1.8
|
|
|
|
|
|
(1.8
|
)
|
|
|
(o)
|
|
|
|
|
--
|
|
Loss on sale of discontinued operations, net of income tax benefit
of $110.3 million
|
|
|
|
|
(297.9
|
)
|
|
|
|
|
297.9
|
|
|
|
(p)
|
|
|
|
|
|
|
--
|
|
|
|
|
|
--
|
|
|
|
|
|
--
|
|
|
|
|
|
|
|
|
--
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations
|
|
|
|
|
(283.8
|
)
|
|
|
|
|
283.8
|
|
|
|
|
|
|
|
|
--
|
|
|
|
|
|
1.8
|
|
|
|
|
|
(1.8
|
)
|
|
|
|
|
|
|
|
--
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
|
|
|
|
|
988.7
|
|
|
|
|
|
454.0
|
|
|
|
|
|
|
|
|
1,442.7
|
|
|
|
|
|
1,102.5
|
|
|
|
|
|
141.8
|
|
|
|
|
|
|
|
|
1,244.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings attributable to noncontrolling interest
|
|
|
|
|
3.6
|
|
|
|
|
|
--
|
|
|
|
|
|
|
|
|
3.6
|
|
|
|
|
|
3.7
|
|
|
|
|
|
--
|
|
|
|
|
|
|
|
|
3.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings attributable to Allergan, Inc.
|
|
|
|
$
|
985.1
|
|
|
|
|
$
|
454.0
|
|
|
|
|
|
|
|
$
|
1,439.1
|
|
|
|
|
$
|
1,098.8
|
|
|
|
|
$
|
141.8
|
|
|
|
|
|
|
|
$
|
1,240.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allergan, Inc. stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
|
$
|
4.28
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4.85
|
|
|
|
|
$
|
3.64
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4.11
|
|
Discontinued operations
|
|
|
|
|
(0.96
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
--
|
|
|
|
|
|
--
|
|
|
|
|
|
|
|
|
|
|
|
|
--
|
|
Net basic earnings per share attributable to Allergan, Inc.
stockholders
|
|
|
|
$
|
3.32
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4.85
|
|
|
|
|
$
|
3.64
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allergan, Inc. stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
|
$
|
4.20
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4.77
|
|
|
|
|
$
|
3.57
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4.04
|
|
Discontinued operations
|
|
|
|
|
(0.94
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
--
|
|
|
|
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
--
|
|
Net diluted earnings per share attributable to Allergan, Inc.
stockholders
|
|
|
|
$
|
3.26
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4.77
|
|
|
|
|
$
|
3.58
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
296.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
296.8
|
|
|
|
|
|
301.5
|
|
|
|
|
|
|
|
|
|
|
|
|
301.5
|
|
Diluted
|
|
|
|
|
301.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
301.8
|
|
|
|
|
|
307.1
|
|
|
|
|
|
|
|
|
|
|
|
|
307.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected ratios as a percentage of product
net sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales (excludes amortization of intangible assets)
|
|
|
|
|
12.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
12.7
|
%
|
|
|
|
|
13.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
13.5
|
%
|
Selling, general and administrative
|
|
|
|
|
40.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
39.1
|
%
|
|
|
|
|
39.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
39.2
|
%
|
Research and development
|
|
|
|
|
16.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
16.7
|
%
|
|
|
|
|
17.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
16.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
|
|
Fair market value inventory adjustment rollout of $8.9 million
associated with the acquisition of SkinMedica, Inc.
|
(b)
|
|
|
|
Expenses from changes in fair value of contingent consideration of
$70.7 million included in selling, general and administrative
expenses and integration and transaction costs of $19.6 million
associated with business combinations, consisting of cost of sales
of $0.1 million and selling, general and administrative expenses
of $19.5 million
|
(c)
|
|
|
|
Aggregate charges of $3.1 million for external costs for
stockholder derivative litigation costs associated with the DOJ
settlement announced in September 2010 and other legal contingency
expenses
|
(d)
|
|
|
|
Transaction costs of $1.0 million associated with a licensing
agreement with Medytox, Inc.
|
(e)
|
|
|
|
Expenses related to the realignment of various business functions
of $2.8 million, consisting of selling, general and administrative
expenses of $1.7 million and research and development expenses of
$1.1 million
|
(f)
|
|
|
|
Upfront licensing fee of $6.5 million included in research and
development expenses associated with a license and collaboration
agreement for technology that has not achieved regulatory approval
and related transaction costs of $0.1 million included in selling,
general and administrative expenses
|
(g)
|
|
|
|
Amortization of certain intangible assets related to business
combinations, asset acquisitions and product licenses
|
(h)
|
|
|
|
Impairment of an intangible asset related to technology acquired
in connection with the 2011 acquisition of Precision Light, Inc.
|
(i)
|
|
|
|
Net restructuring charges
|
(j)
|
|
|
|
Interest expense associated with changes in estimated taxes
related to uncertain tax positions included in prior year filings
|
(k)
|
|
|
|
Unrealized gain of $10.4 million on the mark-to-market adjustment
to derivative instruments
|
(l)
|
|
|
|
Gain on sale of investments of $0.7 million
|
(m)
|
|
|
|
Impairment of a non-marketable equity investment of $3.7 million
|
(n)
|
|
|
|
Total tax effect for non-GAAP pre-tax adjustments and other income
tax adjustments, consisting of the following amounts (in millions):
|
|
|
|
|
|
|
|
|
|
Tax effect
|
|
|
|
|
|
Non-GAAP pre-tax adjustments of $230.0 million
|
|
|
|
$
|
(47.2
|
)
|
|
|
|
|
|
Estimated impact of the retroactive U.S. Research and Development
tax credit for 2012
|
|
|
|
|
(15.1
|
)
|
|
|
|
|
|
Change in estimated taxes related to uncertain tax positions
included in prior year filings
|
|
|
|
|
2.5
|
|
|
|
|
|
|
|
|
|
|
$
|
(59.8
|
)
|
(o)
|
|
|
|
Earnings from discontinued operations associated with the sale of
the obesity intervention business unit
|
(p)
|
|
|
|
Loss on the sale of discontinued operations
|
(q)
|
|
|
|
Fair market value inventory adjustment rollout of $0.3 million
associated with the purchase of a distributor's business in Russia
related to Allergan's products
|
(r)
|
|
|
|
Expenses from changes in fair value of contingent consideration of
$5.4 million included in selling, general and administrative
expenses and integration and transaction costs of $2.1 million
associated with business combinations, consisting of cost of sales
of $0.1 million and selling, general and administrative expenses
of $2.0 million
|
(s)
|
|
|
|
Aggregate charges of $9.7 million for external costs for
stockholder derivative and tax litigation associated with the DOJ
settlement announced in September 2010 and other legal contingency
expenses
|
(t)
|
|
|
|
Expenses related to the realignment of various business functions
of $1.8 million, consisting of selling, general and administrative
expenses of $1.5 million and research and development expenses of
$0.3 million
|
(u)
|
|
|
|
Upfront licensing fees of $62.5 million included in research and
development expenses associated with the license and collaboration
agreements with Molecular Partners AG for technology that has not
achieved regulatory approval and related transaction costs of $0.3
million included in selling, general and administrative expenses
|
(v)
|
|
|
|
Impairment of an in-process research and development asset related
to technology acquired in connection with the 2011 acquisition of
Vicept Therapeutics, Inc. of $17.0 million and a prepaid royalty
asset associated with the Sanctura® franchise of $5.3
million
|
(w)
|
|
|
|
Unrealized loss on the mark-to-market adjustment to derivative
instruments
|
(x)
|
|
|
|
Total tax effect for non-GAAP pre-tax adjustments and other income
tax adjustments, consisting of the following amounts (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
Tax effect
|
|
|
|
|
|
Non-GAAP pre-tax adjustments of $188.8 million
|
|
|
|
|
|
$
|
(52.9
|
)
|
|
|
|
|
|
Change in estimated taxes related to uncertain tax positions
included in prior year filings
|
|
|
|
|
|
|
7.7
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(45.2
|
)
|
|
ALLERGAN, INC.
|
Condensed Consolidated Balance Sheets
|
(Unaudited)
|
|
in millions
|
|
|
|
December 31,
2013
|
|
|
|
December 31,
2012
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and equivalents
|
|
|
|
$
|
3,046.1
|
|
|
|
|
$
|
2,701.8
|
|
Short-term investments
|
|
|
|
|
603.0
|
|
|
|
|
|
260.6
|
|
Trade receivables, net
|
|
|
|
|
883.3
|
|
|
|
|
|
739.0
|
|
Inventories
|
|
|
|
|
285.3
|
|
|
|
|
|
272.3
|
|
Other current assets
|
|
|
|
|
493.0
|
|
|
|
|
|
448.6
|
|
Assets of discontinued operations
|
|
|
|
|
9.0
|
|
|
|
|
|
512.6
|
|
|
|
|
|
|
|
|
|
|
Total current assets
|
|
|
|
|
5,319.7
|
|
|
|
|
|
4,934.9
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
|
|
|
923.2
|
|
|
|
|
|
851.5
|
|
Intangible assets, net
|
|
|
|
|
1,650.0
|
|
|
|
|
|
860.1
|
|
Goodwill
|
|
|
|
|
2,339.4
|
|
|
|
|
|
2,133.8
|
|
Other noncurrent assets
|
|
|
|
|
342.0
|
|
|
|
|
|
399.0
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
$
|
10,574.3
|
|
|
|
|
$
|
9,179.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes payable
|
|
|
|
$
|
55.6
|
|
|
|
|
$
|
48.8
|
|
Accounts payable
|
|
|
|
|
283.2
|
|
|
|
|
|
232.2
|
|
Other accrued expenses and income taxes
|
|
|
|
|
905.5
|
|
|
|
|
|
809.2
|
|
Liabilities of discontinued operations
|
|
|
|
|
--
|
|
|
|
|
|
5.3
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
|
|
1,244.3
|
|
|
|
|
|
1,095.5
|
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
|
|
2,098.3
|
|
|
|
|
|
1,512.4
|
|
Other liabilities
|
|
|
|
|
762.2
|
|
|
|
|
|
708.8
|
|
|
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
|
|
Allergan, Inc. stockholders' equity
|
|
|
|
|
6,463.2
|
|
|
|
|
|
5,837.1
|
|
Noncontrolling interest
|
|
|
|
|
6.3
|
|
|
|
|
|
25.5
|
|
Total equity
|
|
|
|
|
6,469.5
|
|
|
|
|
|
5,862.6
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity
|
|
|
|
$
|
10,574.3
|
|
|
|
|
$
|
9,179.3
|
|
|
|
|
|
|
|
|
|
|
DSO
|
|
|
|
|
49
|
|
|
|
|
|
47
|
|
|
|
|
|
|
|
|
|
|
DOH
|
|
|
|
|
127
|
|
|
|
|
|
136
|
|
|
|
|
|
|
|
|
|
|
Cash and equivalents and short-term investments
|
|
|
|
$
|
3,649.1
|
|
|
|
|
$
|
2,962.4
|
|
Total notes payable and long-term debt
|
|
|
|
|
(2,153.9
|
)
|
|
|
|
|
(1,561.2
|
)
|
Cash and equivalents and short-term investments, net of debt
|
|
|
|
$
|
1,495.2
|
|
|
|
|
$
|
1,401.2
|
|
|
|
|
|
|
|
|
|
|
Debt-to-capital percentage
|
|
|
|
|
25.0
|
%
|
|
|
|
|
21.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ALLERGAN, INC.
|
Reconciliation of Non-GAAP Earnings and Diluted Earnings Per Share
from Continuing Operations
|
(Unaudited)
|
|
In millions, except per share amounts
|
|
|
|
Three months ended
|
|
|
|
|
December 31,
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
|
2013
|
|
|
|
|
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations
|
|
|
|
$
|
312.6
|
|
|
|
|
|
|
|
|
$
|
322.3
|
|
Less net (loss) earnings attributable to noncontrolling interest
|
|
|
|
|
(0.6
|
)
|
|
|
|
|
|
|
|
|
1.0
|
|
Earnings from continuing operations attributable to Allergan, Inc.
|
|
|
|
|
313.2
|
|
|
|
|
|
|
|
|
|
321.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP pre-tax adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses (income) from changes in fair value of contingent
consideration and integration
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and transaction costs associated with business combinations
|
|
|
|
|
67.3
|
|
|
|
|
|
|
|
|
|
(8.9
|
)
|
External costs for stockholder derivative and tax litigation
associated with the DOJ
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
settlement
|
|
|
|
|
(0.5
|
)
|
|
|
|
|
|
|
|
|
0.8
|
|
Transaction costs associated with a licensing agreement with
Medytox, Inc.
|
|
|
|
|
0.7
|
|
|
|
|
|
|
|
|
|
--
|
|
Expenses related to the realignment of various business functions
|
|
|
|
|
0.3
|
|
|
|
|
|
|
|
|
|
0.7
|
|
Amortization of intangible assets
|
|
|
|
|
27.0
|
|
|
|
|
|
|
|
|
|
17.2
|
|
Impairment of an intangible asset related to technology acquired in
connection with the
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011 acquisition of Precision Light, Inc.
|
|
|
|
|
11.4
|
|
|
|
|
|
|
|
|
|
--
|
|
Net restructuring charges
|
|
|
|
|
0.6
|
|
|
|
|
|
|
|
|
|
--
|
|
Interest expense associated with changes in estimated taxes related
to uncertain tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
positions included in prior year filings
|
|
|
|
|
0.1
|
|
|
|
|
|
|
|
|
|
0.1
|
|
Unrealized (gain) loss on derivative instruments
|
|
|
|
|
(6.1
|
)
|
|
|
|
|
|
|
|
|
0.1
|
|
Transaction costs associated with the license and collaboration
agreements with
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Molecular Partners AG for technology that has not achieved
regulatory approval
|
|
|
|
|
--
|
|
|
|
|
|
|
|
|
|
0.2
|
|
Impairment of an in-process research and development asset related
to technology
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
acquired in connection with the 2011 acquisition of Vicept
Therapeutics, Inc. and a
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
prepaid royalty asset associated with the Sanctura® franchise
|
|
|
|
|
--
|
|
|
|
|
|
|
|
|
|
22.3
|
|
|
|
|
|
|
414.0
|
|
|
|
|
|
|
|
|
|
353.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax effect for above items
|
|
|
|
|
(11.3
|
)
|
|
|
|
|
|
|
|
|
(14.0
|
)
|
Estimated impact of the retroactive U.S. Research and Development
tax credit for 2012
|
|
|
|
|
0.3
|
|
|
|
|
|
|
|
|
|
--
|
|
Change in estimated taxes related to uncertain tax positions
included in prior year filings
|
|
|
|
|
2.5
|
|
|
|
|
|
|
|
|
|
1.0
|
|
Non-GAAP earnings from continuing operations
|
|
|
|
$
|
405.5
|
|
|
|
|
|
|
|
|
$
|
340.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares outstanding
|
|
|
|
|
296.8
|
|
|
|
|
|
|
|
|
|
299.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net shares assumed issued using the treasury stock method for
options and non-vested equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
shares and share units outstanding during each period based on
average market price
|
|
|
|
|
4.6
|
|
|
|
|
|
|
|
|
|
5.3
|
|
|
|
|
|
|
301.4
|
|
|
|
|
|
|
|
|
|
305.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share from continuing operations
|
|
|
|
$
|
1.04
|
|
|
|
|
|
|
|
|
$
|
1.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP earnings per share adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses (income) from changes in fair value of contingent
consideration and integration
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and transaction costs associated with business combinations
|
|
|
|
|
0.22
|
|
|
|
|
|
|
|
|
|
(0.02
|
)
|
Amortization of intangible assets
|
|
|
|
|
0.06
|
|
|
|
|
|
|
|
|
|
0.04
|
|
Impairment of an intangible asset related to technology acquired in
connection with the
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011 acquisition of Precision Light, Inc.
|
|
|
|
|
0.03
|
|
|
|
|
|
|
|
|
|
--
|
|
Unrealized (gain) loss on derivative instruments
|
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
--
|
|
Change in estimated taxes related to uncertain tax positions
included in prior year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
filings
|
|
|
|
|
0.01
|
|
|
|
|
|
|
|
|
|
--
|
|
Impairment of an in-process research and development asset related
to technology
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
acquired in connection with the 2011 acquisition of Vicept
Therapeutics, Inc. and a
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
prepaid royalty asset associated with the Sanctura® franchise
|
|
|
|
|
--
|
|
|
|
|
|
|
|
|
|
0.05
|
|
Non-GAAP diluted earnings per share from continuing operations
|
|
|
|
$
|
1.35
|
|
|
|
|
|
|
|
|
$
|
1.12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year over year change
|
|
|
|
|
|
|
|
20.5
|
%
|
|
|
|
|
|
ALLERGAN, INC.
|
Reconciliation of Non-GAAP Earnings and Diluted Earnings Per Share
from Continuing Operations
|
(Unaudited)
|
|
In millions, except per share amounts
|
|
|
|
Twelve months ended
|
|
|
|
|
December 31,
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
|
2013
|
|
|
|
|
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations
|
|
|
|
$
|
1,272.5
|
|
|
|
|
|
|
|
|
$
|
1,100.7
|
|
Less net earnings attributable to noncontrolling interest
|
|
|
|
|
3.6
|
|
|
|
|
|
|
|
|
|
3.7
|
|
Earnings from continuing operations attributable to Allergan, Inc.
|
|
|
|
|
1,268.9
|
|
|
|
|
|
|
|
|
|
1,097.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP pre-tax adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair market value inventory adjustment rollout associated with the
purchase of various
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
businesses
|
|
|
|
|
8.9
|
|
|
|
|
|
|
|
|
|
0.3
|
|
Expenses from changes in fair value of contingent consideration and
integration and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
transaction costs associated with business combinations
|
|
|
|
|
90.3
|
|
|
|
|
|
|
|
|
|
7.5
|
|
Aggregate charges for external costs for stockholder derivative and
tax litigation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
associated with the DOJ settlement and other legal contingency
expenses
|
|
|
|
|
3.1
|
|
|
|
|
|
|
|
|
|
9.7
|
|
Transaction costs associated with a licensing agreement with
Medytox, Inc.
|
|
|
|
|
1.0
|
|
|
|
|
|
|
|
|
|
--
|
|
Expenses related to the realignment of various business functions
|
|
|
|
|
2.8
|
|
|
|
|
|
|
|
|
|
1.8
|
|
Research and development expenses related to an upfront licensing
fee associated with
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
a license and collaboration agreement for technology that has not
achieved regulatory
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
approval and related transaction costs
|
|
|
|
|
6.6
|
|
|
|
|
|
|
|
|
|
--
|
|
Amortization of intangible assets
|
|
|
|
|
107.4
|
|
|
|
|
|
|
|
|
|
66.7
|
|
Impairment of an intangible asset related to technology acquired in
connection with
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
the 2011 acquisition of Precision Light, Inc.
|
|
|
|
|
11.4
|
|
|
|
|
|
|
|
|
|
--
|
|
Net restructuring charges
|
|
|
|
|
5.5
|
|
|
|
|
|
|
|
|
|
1.5
|
|
Interest expense associated with changes in estimated taxes related
to uncertain tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
positions included in prior year filings
|
|
|
|
|
0.4
|
|
|
|
|
|
|
|
|
|
0.9
|
|
Unrealized (gain) loss on derivative instruments
|
|
|
|
|
(10.4
|
)
|
|
|
|
|
|
|
|
|
15.3
|
|
Gain on sale of investments
|
|
|
|
|
(0.7
|
)
|
|
|
|
|
|
|
|
|
--
|
|
Impairment of a non-marketable equity investment
|
|
|
|
|
3.7
|
|
|
|
|
|
|
|
|
|
--
|
|
Research and development expenses related to upfront licensing fees
associated with
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
the license and collaboration agreements with Molecular Partners AG
for technology
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
that has not achieved regulatory approval and related transaction
costs
|
|
|
|
|
--
|
|
|
|
|
|
|
|
|
|
62.8
|
|
Impairment of an in-process research and development asset related
to technology
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
acquired in connection with the 2011 acquisition of Vicept
Therapeutics, Inc. and a
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
prepaid royalty asset associated with the Sanctura® franchise
|
|
|
|
|
--
|
|
|
|
|
|
|
|
|
|
22.3
|
|
|
|
|
|
|
1,498.9
|
|
|
|
|
|
|
|
|
|
1,285.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax effect for above items
|
|
|
|
|
(47.2
|
)
|
|
|
|
|
|
|
|
|
(52.9
|
)
|
Estimated impact of the retroactive U.S. Research and Development
tax credit for 2012
|
|
|
|
|
(15.1
|
)
|
|
|
|
|
|
|
|
|
--
|
|
Change in estimated taxes related to uncertain tax positions
included in prior year filings
|
|
|
|
|
2.5
|
|
|
|
|
|
|
|
|
|
7.7
|
|
Non-GAAP earnings from continuing operations
|
|
|
|
$
|
1,439.1
|
|
|
|
|
|
|
|
|
$
|
1,240.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares outstanding
|
|
|
|
|
296.8
|
|
|
|
|
|
|
|
|
|
301.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net shares assumed issued using the treasury stock method for
options and non-vested
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
equity shares and share units outstanding during each period based
on average market
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
price
|
|
|
|
|
5.0
|
|
|
|
|
|
|
|
|
|
5.6
|
|
|
|
|
|
|
301.8
|
|
|
|
|
|
|
|
|
|
307.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share from continuing operations
|
|
|
|
$
|
4.20
|
|
|
|
|
|
|
|
|
$
|
3.57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP earnings per share adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair market value inventory adjustment rollout associated with the
purchase of various
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
businesses
|
|
|
|
|
0.02
|
|
|
|
|
|
|
|
|
|
--
|
|
Expenses from changes in fair value of contingent consideration and
integration and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
transaction costs associated with business combinations
|
|
|
|
|
0.28
|
|
|
|
|
|
|
|
|
|
0.03
|
|
Aggregate charges for external costs for stockholder derivative and
tax litigation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
associated with the DOJ settlement and other legal contingency
expenses
|
|
|
|
|
0.01
|
|
|
|
|
|
|
|
|
|
0.03
|
|
Expenses related to the realignment of various business functions
|
|
|
|
|
0.01
|
|
|
|
|
|
|
|
|
|
--
|
|
Research and development expenses related to an upfront licensing
fee associated with
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
a license and collaboration agreement for technology that has not
achieved regulatory
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
approval and related transaction costs
|
|
|
|
|
0.02
|
|
|
|
|
|
|
|
|
|
--
|
|
Amortization of intangible assets
|
|
|
|
|
0.24
|
|
|
|
|
|
|
|
|
|
0.16
|
|
Impairment of an intangible asset related to technology acquired in
connection with
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
the 2011 acquisition of Precision Light, Inc.
|
|
|
|
|
0.03
|
|
|
|
|
|
|
|
|
|
--
|
|
Net restructuring charges
|
|
|
|
|
0.01
|
|
|
|
|
|
|
|
|
|
--
|
|
Unrealized (gain) loss on derivative instruments
|
|
|
|
|
(0.02
|
)
|
|
|
|
|
|
|
|
|
0.03
|
|
Impairment of a non-marketable equity investment
|
|
|
|
|
0.01
|
|
|
|
|
|
|
|
|
|
--
|
|
Estimated impact of the retroactive U.S. Research and Development
tax credit for 2012
|
|
|
|
|
(0.05
|
)
|
|
|
|
|
|
|
|
|
--
|
|
Change in estimated taxes related to uncertain tax positions
included in prior year filings
|
|
|
|
|
0.01
|
|
|
|
|
|
|
|
|
|
0.02
|
|
Research and development expenses related to upfront licensing fees
associated with the
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
license and collaboration agreements with Molecular Partners AG for
technology that has
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
not achieved regulatory approval and related transaction costs
|
|
|
|
|
--
|
|
|
|
|
|
|
|
|
|
0.15
|
|
Impairment of an in-process research and development asset related
to technology acquired
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in connection with the 2011 acquisition of Vicept Therapeutics, Inc.
and a prepaid royalty
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
asset associated with the Sanctura® franchise
|
|
|
|
|
--
|
|
|
|
|
|
|
|
|
|
0.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted earnings per share from continuing operations
|
|
|
|
$
|
4.77
|
|
|
|
|
|
|
|
|
$
|
4.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year over year change
|
|
|
|
|
|
|
|
18.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ALLERGAN, INC.
|
Supplemental Non-GAAP Information
|
(Unaudited)
|
|
|
|
|
|
Three months ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
December 31,
|
|
|
|
$ change in net sales
|
|
|
|
Percent change in net sales
|
|
|
|
|
2013
|
|
|
|
2012
|
|
|
|
Total
|
|
|
|
Performance
|
|
|
|
Currency
|
|
|
|
Total
|
|
|
|
Performance
|
|
|
|
Currency
|
in millions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eye Care Pharmaceuticals
|
|
|
|
$
|
782.2
|
|
|
|
|
$
|
706.1
|
|
|
|
|
$
|
76.1
|
|
|
|
|
$
|
82.1
|
|
|
|
|
$
|
(6.0
|
)
|
|
|
|
10.8
|
%
|
|
|
|
11.6
|
%
|
|
|
|
(0.8
|
)%
|
Botox/Neuromodulators
|
|
|
|
|
525.6
|
|
|
|
|
|
474.6
|
|
|
|
|
|
51.0
|
|
|
|
|
|
57.6
|
|
|
|
|
|
(6.6
|
)
|
|
|
|
10.7
|
%
|
|
|
|
12.1
|
%
|
|
|
|
(1.4
|
)%
|
Skin Care and Other
|
|
|
|
|
121.9
|
|
|
|
|
|
73.3
|
|
|
|
|
|
48.6
|
|
|
|
|
|
48.8
|
|
|
|
|
|
(0.2
|
)
|
|
|
|
66.3
|
%
|
|
|
|
66.6
|
%
|
|
|
|
(0.3
|
)%
|
Total Specialty Pharmaceuticals
|
|
|
|
|
1,429.7
|
|
|
|
|
|
1,254.0
|
|
|
|
|
|
175.7
|
|
|
|
|
|
188.5
|
|
|
|
|
|
(12.8
|
)
|
|
|
|
14.0
|
%
|
|
|
|
15.0
|
%
|
|
|
|
(1.0
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Breast Aesthetics
|
|
|
|
|
89.6
|
|
|
|
|
|
91.4
|
|
|
|
|
|
(1.8
|
)
|
|
|
|
|
(1.8
|
)
|
|
|
|
|
--
|
|
|
|
|
(2.0
|
)%
|
|
|
|
(2.0
|
)%
|
|
|
|
--
|
|
Facial Aesthetics
|
|
|
|
|
137.2
|
|
|
|
|
|
102.4
|
|
|
|
|
|
34.8
|
|
|
|
|
|
36.2
|
|
|
|
|
|
(1.4
|
)
|
|
|
|
34.0
|
%
|
|
|
|
35.4
|
%
|
|
|
|
(1.4
|
)%
|
Core Medical Devices
|
|
|
|
|
226.8
|
|
|
|
|
|
193.8
|
|
|
|
|
|
33.0
|
|
|
|
|
|
34.4
|
|
|
|
|
|
(1.4
|
)
|
|
|
|
17.0
|
%
|
|
|
|
17.8
|
%
|
|
|
|
(0.8
|
)%
|
Other
|
|
|
|
|
3.1
|
|
|
|
|
|
--
|
|
|
|
|
|
3.1
|
|
|
|
|
|
3.1
|
|
|
|
|
|
--
|
|
|
|
|
N/A
|
|
|
|
|
N/A
|
|
|
|
|
N/A
|
|
Total Medical Devices
|
|
|
|
|
229.9
|
|
|
|
|
|
193.8
|
|
|
|
|
|
36.1
|
|
|
|
|
|
37.5
|
|
|
|
|
|
(1.4
|
)
|
|
|
|
18.6
|
%
|
|
|
|
19.3
|
%
|
|
|
|
(0.7
|
)%
|
Product net sales
|
|
|
|
$
|
1,659.6
|
|
|
|
|
$
|
1,447.8
|
|
|
|
|
$
|
211.8
|
|
|
|
|
$
|
226.0
|
|
|
|
|
$
|
(14.2
|
)
|
|
|
|
14.6
|
%
|
|
|
|
15.6
|
%
|
|
|
|
(1.0
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Product Net Sales (a):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alphagan P, Alphagan, and
Combigan
|
|
|
|
$
|
124.9
|
|
|
|
|
$
|
118.5
|
|
|
|
|
$
|
6.4
|
|
|
|
|
$
|
7.7
|
|
|
|
|
$
|
(1.3
|
)
|
|
|
|
5.5
|
%
|
|
|
|
6.5
|
%
|
|
|
|
(1.0
|
)%
|
Lumigan Franchise
|
|
|
|
|
172.6
|
|
|
|
|
|
170.2
|
|
|
|
|
|
2.4
|
|
|
|
|
|
1.7
|
|
|
|
|
|
0.7
|
|
|
|
|
1.4
|
%
|
|
|
|
1.0
|
%
|
|
|
|
0.4
|
%
|
Total Glaucoma Products
|
|
|
|
|
299.8
|
|
|
|
|
|
290.8
|
|
|
|
|
|
9.0
|
|
|
|
|
|
9.7
|
|
|
|
|
|
(0.7
|
)
|
|
|
|
3.1
|
%
|
|
|
|
3.3
|
%
|
|
|
|
(0.2
|
)%
|
Restasis
|
|
|
|
|
277.6
|
|
|
|
|
|
212.0
|
|
|
|
|
|
65.6
|
|
|
|
|
|
66.8
|
|
|
|
|
|
(1.2
|
)
|
|
|
|
31.0
|
%
|
|
|
|
31.5
|
%
|
|
|
|
(0.5
|
)%
|
Latisse
|
|
|
|
|
23.4
|
|
|
|
|
|
24.9
|
|
|
|
|
|
(1.5
|
)
|
|
|
|
|
(1.4
|
)
|
|
|
|
|
(0.1
|
)
|
|
|
|
(6.1
|
)%
|
|
|
|
(5.3
|
)%
|
|
|
|
(0.8
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
|
|
|
|
|
63.1
|
%
|
|
|
|
|
61.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
|
|
|
|
36.9
|
%
|
|
|
|
|
38.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ALLERGAN, INC.
|
Supplemental Non-GAAP Information
|
(Unaudited)
|
|
|
|
|
|
Twelve months ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
December 31,
|
|
|
|
$ change in net sales
|
|
|
|
Percent change in net sales
|
|
|
|
|
2013
|
|
|
|
2012
|
|
|
|
Total
|
|
|
|
Performance
|
|
|
|
Currency
|
|
|
|
Total
|
|
|
|
Performance
|
|
|
|
Currency
|
in millions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eye Care Pharmaceuticals
|
|
|
|
$
|
2,890.3
|
|
|
|
|
$
|
2,692.2
|
|
|
|
|
$
|
198.1
|
|
|
|
$
|
216.2
|
|
|
|
$
|
(18.1
|
)
|
|
|
|
7.4
|
%
|
|
|
|
8.0
|
%
|
|
|
|
(0.6
|
)%
|
Botox/Neuromodulators
|
|
|
|
|
1,982.2
|
|
|
|
|
|
1,766.3
|
|
|
|
|
|
215.9
|
|
|
|
|
233.6
|
|
|
|
|
(17.7
|
)
|
|
|
|
12.2
|
%
|
|
|
|
13.2
|
%
|
|
|
|
(1.0
|
)%
|
Skin Care and Other
|
|
|
|
|
466.5
|
|
|
|
|
|
326.1
|
|
|
|
|
|
140.4
|
|
|
|
|
140.9
|
|
|
|
|
(0.5
|
)
|
|
|
|
43.1
|
%
|
|
|
|
43.2
|
%
|
|
|
|
(0.1
|
)%
|
Total Specialty Pharmaceuticals
|
|
|
|
|
5,339.0
|
|
|
|
|
|
4,784.6
|
|
|
|
|
|
554.4
|
|
|
|
|
590.7
|
|
|
|
|
(36.3
|
)
|
|
|
|
11.6
|
%
|
|
|
|
12.3
|
%
|
|
|
|
(0.7
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Breast Aesthetics
|
|
|
|
|
377.9
|
|
|
|
|
|
377.1
|
|
|
|
|
|
0.8
|
|
|
|
|
2.1
|
|
|
|
|
(1.3
|
)
|
|
|
|
0.2
|
%
|
|
|
|
0.6
|
%
|
|
|
|
(0.4
|
)%
|
Facial Aesthetics
|
|
|
|
|
477.5
|
|
|
|
|
|
387.6
|
|
|
|
|
|
89.9
|
|
|
|
|
93.4
|
|
|
|
|
(3.5
|
)
|
|
|
|
23.2
|
%
|
|
|
|
24.1
|
%
|
|
|
|
(0.9
|
)%
|
Core Medical Devices
|
|
|
|
|
855.4
|
|
|
|
|
|
764.7
|
|
|
|
|
|
90.7
|
|
|
|
|
95.5
|
|
|
|
|
(4.8
|
)
|
|
|
|
11.9
|
%
|
|
|
|
12.5
|
%
|
|
|
|
(0.6
|
)%
|
Other
|
|
|
|
|
3.1
|
|
|
|
|
|
--
|
|
|
|
|
|
3.1
|
|
|
|
|
3.1
|
|
|
|
|
--
|
|
|
|
|
N/A
|
|
|
|
|
N/A
|
|
|
|
|
N/A
|
|
Total Medical Devices
|
|
|
|
|
858.5
|
|
|
|
|
|
764.7
|
|
|
|
|
|
93.8
|
|
|
|
|
98.6
|
|
|
|
|
(4.8
|
)
|
|
|
|
12.3
|
%
|
|
|
|
12.9
|
%
|
|
|
|
(0.6
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product net sales
|
|
|
|
$
|
6,197.5
|
|
|
|
|
$
|
5,549.3
|
|
|
|
|
$
|
648.2
|
|
|
|
$
|
689.3
|
|
|
|
$
|
(41.1
|
)
|
|
|
|
11.7
|
%
|
|
|
|
12.4
|
%
|
|
|
|
(0.7
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Product Net Sales (a):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alphagan P, Alphagan, and
Combigan
|
|
|
|
$
|
474.1
|
|
|
|
|
$
|
453.2
|
|
|
|
|
$
|
20.9
|
|
|
|
$
|
24.1
|
|
|
|
$
|
(3.2
|
)
|
|
|
|
4.6
|
%
|
|
|
|
5.3
|
%
|
|
|
|
(0.7
|
)%
|
Lumigan Franchise
|
|
|
|
|
625.3
|
|
|
|
|
|
622.6
|
|
|
|
|
|
2.7
|
|
|
|
|
1.7
|
|
|
|
|
1.0
|
|
|
|
|
0.4
|
%
|
|
|
|
0.3
|
%
|
|
|
|
0.1
|
%
|
Total Glaucoma Products
|
|
|
|
|
1,108.5
|
|
|
|
|
|
1,085.8
|
|
|
|
|
|
22.7
|
|
|
|
|
25.3
|
|
|
|
|
(2.6
|
)
|
|
|
|
2.1
|
%
|
|
|
|
2.3
|
%
|
|
|
|
(0.2
|
)%
|
Restasis
|
|
|
|
|
940.0
|
|
|
|
|
|
792.0
|
|
|
|
|
|
148.0
|
|
|
|
|
150.3
|
|
|
|
|
(2.3
|
)
|
|
|
|
18.7
|
%
|
|
|
|
19.0
|
%
|
|
|
|
(0.3
|
)%
|
Latisse
|
|
|
|
|
100.0
|
|
|
|
|
|
97.3
|
|
|
|
|
|
2.7
|
|
|
|
|
3.1
|
|
|
|
|
(0.4
|
)
|
|
|
|
2.7
|
%
|
|
|
|
3.2
|
%
|
|
|
|
(0.5
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
|
|
|
|
|
62.0
|
%
|
|
|
|
|
60.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
|
|
|
|
38.0
|
%
|
|
|
|
|
39.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
|
|
Percentage change in selected product net sales is calculated on
amounts reported to the nearest whole dollar. Total glaucoma
products include the Alphagan and Lumigan franchises.
|
|
|
|
|
|
|
ALLERGAN, INC.
|
Reconciliation of GAAP Diluted Earnings Per Share Expectations
|
To Non-GAAP Diluted Earnings Per Share Expectations
|
(Unaudited)
|
|
|
|
|
|
First Quarter 2014
|
|
|
|
|
Low
|
|
|
|
High
|
|
|
|
|
|
|
|
|
|
GAAP diluted earnings per share attributable to Allergan, Inc.
stockholders from continuing
|
|
|
|
|
|
|
|
|
|
|
operations expectations (a)
|
|
|
|
$
|
1.03
|
|
|
|
$
|
1.06
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets
|
|
|
|
|
0.06
|
|
|
|
|
0.06
|
Non-GAAP diluted earnings per share from continuing operations
expectations
|
|
|
|
$
|
1.09
|
|
|
|
$
|
1.12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full Year 2014
|
|
|
|
|
Low
|
|
|
|
High
|
|
|
|
|
|
|
|
|
|
GAAP diluted earnings per share attributable to Allergan, Inc.
stockholders from continuing
|
|
|
|
|
|
|
|
|
|
|
operations expectations (a)
|
|
|
|
$
|
5.13
|
|
|
|
$
|
5.25
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets
|
|
|
|
|
0.23
|
|
|
|
|
0.23
|
Non-GAAP diluted earnings per share from continuing operations
expectations
|
|
|
|
$
|
5.36
|
|
|
|
$
|
5.48
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
|
|
GAAP diluted earnings per share from continuing operations
expectations exclude any potential impact of future unrealized gains
or losses on derivative instruments, changes in contingent
consideration, integration and transaction costs associated with
business combinations, upfront licensing fees associated with
certain license and collaboration agreements, restructuring charges
and stockholder derivative and tax litigation costs related to the
2010 DOJ settlement and other legal contingency expenses that may
occur but that are not currently known or determinable.
|
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|