[February 04, 2015] |
|
Allergan Reports Fourth Quarter 2014 Operating Results
Allergan, Inc. (NYSE: AGN) today announced operating results for the
quarter ended December 31, 2014. Allergan also announced that its Board
of Directors has declared a fourth quarter dividend of $0.05 per share,
payable on March 20, 2015 to stockholders of record on February 9, 2015.
Operating Results Attributable to Stockholders
from Continuing Operations
For the quarter ended December 31, 2014:
-
Allergan reported $1.77 diluted earnings per share attributable to
stockholders compared to $1.04 diluted earnings per share attributable
to stockholders for the fourth quarter of 2013.
-
Allergan reported $2.17 non-GAAP diluted earnings per share
attributable to stockholders compared to $1.35 non-GAAP diluted
earnings per share attributable to stockholders for the fourth quarter
of 2013, a 60.7 percent increase.
Product Sales
For the quarter ended December 31, 2014:
-
Allergan reported $1,889.0 million total product net sales. Total
product net sales increased 13.8 percent, or 17.2 percent on a
constant currency basis, compared to total product net sales in the
fourth quarter of 2013.
-
Total specialty pharmaceuticals net sales increased 12.4 percent,
or 15.3 percent on a constant currency basis, compared to total
specialty pharmaceuticals net sales in the fourth quarter of 2013.
-
Total core medical devices net sales increased 20.7 percent, or
26.9 percent on a constant currency basis, compared to total core
medical devices net sales in the fourth quarter of 2013.
"Allergan yet again recorded in the fourth quarter the strongest
increase in absolute dollar sales in any quarter in our history driven
by exceptional performance across all of our businesses and geographic
regions. This is a tribute to the focus of our employees during the
unsolicited acquisition attempt," said David E.I. Pyott, Allergan's
Chairman of the Board and Chief Executive Officer. "Furthermore, we are
excited about the acquisition by Actavis, with the vision of creating
the most dynamic company in a new category of Growth Pharma companies."
Operating Highlights
For the quarter ended December 31, 2014:
-
Non-GAAP diluted earnings per share from continuing operations of
$2.17 substantially exceeded the outlook provided at time of
announcement of the third quarter results of between $1.80 and $1.83
due to strong sales and strict control of expenses.
-
Record non-GAAP gross margin of 89.1%.
-
Near record low number of days sales outstanding of 44 days with U.S.
wholesaler inventory levels of our specialty pharmaceuticals products
at the low end of our stated policy levels.
-
Record absolute dollar sales growth of approximately $285 million on a
constant currency basis, driven by mid-teens sales growth across all
of our principal geographic markets, namely the United States, Europe,
Latin America and Asia Pacific.
-
Double digit sales growth in all businesses on a constant currency
basis.
For the full year ended December 31, 2014:
-
Greatest absolute dollar sales growth of over $1 billion on a constant
currency basis, a record in Allergan's 66 year corporate history.
-
Operating cash flow after capital expenditures was approximately $1.7
billion.
-
Based on internal information and assumptions, full year 2014
therapeutic sales accounted for approximately 55% of BOTOX®
(onabotulinumtoxinA) sales and increased approximately 15% compared to
2013. Full year 2014 aesthetic sales accounted for approximately 45%
of total BOTOX® sales and increased approximately 10% compared to 2013.
Product and Pipeline Update
During the fourth quarter of 2014:
-
On November 12, 2014, Allergan announced that the company has received
approval from the U.S. Food and Drug Administration (FDA) to market
two new styles, X and L, of the Natrelle® 410 Highly Cohesive
Anatomically Shaped Silicone-Filled Breast Implants for use in breast
reconstruction, augmentation and revision surgery.
Other Events
-
On January 21, 2015, Corporate Knights announced the 100 most
sustainable companies, ranking Allergan #2. Each year, Canadian media
company Corporate Knights examines companies around the world
to determine those that are best maximizing their capital and making
the most careful use of resources.
-
On June 5, 2014, Newsweek announced that Allergan has been ranked the
#1 Green company in the United States and the #2 Green company in the
world.
Pending Actavis Acquisition of Allergan
-
On November 17, 2014, Actavis plc ("Actavis") and Allergan announced
that they entered into a definitive agreement under which Actavis will
acquire Allergan for a combination of $129.22 in cash and 0.3683
Actavis shares for each share of Allergan common stock. Based on the
closing price of Actavis shares on November 14, 2014, the transaction
is valued at approximately $66 billion, or $219 per Allergan share.
The combination will create one of the top 10 global pharmaceutical
companies by sales revenue, with combined annual pro forma revenues of
more than $23 billion anticipated in 2015. The transaction has been
unanimously approved by the Boards of Directors of Actavis and
Allergan, and is supported by the management teams of both companies.
-
On January 12, 2015, Actavis and Allergan announced that the U.S.
Federal Trade Commission (FTC) has granted early termination of the
waiting period under the Hart-Scott-Rodino Antitrust Improvements Act
of 1976 (HSR Act) with respect to Actavis' pending acquisition of
Allergan.
-
Actavis and Allergan also announced that they have set the close
of business on January 22, 2015 as the record date for determining
the shareholders that will be entitled to vote at their respective
special meetings of shareholders to be held in connection with the
pending acquisition.
-
On January 26, 2015, Actavis and Allergan announced that they have set
March 10, 2015 as the date of their respective special meetings of
stockholders to be held in connection with Actavis' pending
acquisition of Allergan.
Outlook
-
As a result of the November 17th announced acquisition of the company
by Actavis, Allergan will not be providing earnings or sales guidance
for fiscal year 2015.
In this press release, Allergan reports certain historical 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, 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 or the pending Actavis acquisition of Allergan. 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; Allergan's ability to obtain and maintain adequate
protection for its intellectual property rights; 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;
Allergan's ability to obtain and successfully maintain a sufficient
supply of products to meet market demand in a timely manner; the ability
to obtain required regulatory approvals for the pending Actavis
acquisition of Allergan (including the approval of international
antitrust authorities necessary to complete the acquisition), the timing
of obtaining such approvals and the risk that such approvals may result
in the imposition of conditions that could adversely affect the expected
benefits of the transaction; the ability to obtain the requisite
Allergan and Actavis stockholder approvals; the risk that a condition to
closing of the transaction may not be satisfied on a timely basis or at
all; and the failure of the proposed transaction to close for any other
reason. 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 (the SEC), including the discussion under the
heading "Risk Factors" in Allergan's 2013 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 10,500 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.
Important Information for Investors and
Shareholders
This communication does not constitute an offer to sell or the
solicitation of an offer to buy any securities or a solicitation of any
vote or approval, nor shall there be any sale of securities in any
jurisdiction in which such offer, solicitation or sale would be unlawful
prior to registration or qualification under the securities laws of any
such jurisdiction. In connection with the proposed merger between
Actavis and Allergan, Actavis has filed with the SEC a registration
statement on Form S-4, including Amendment No. 1 thereto, that contains
a joint proxy statement of Actavis and Allergan that also constitutes a
prospectus of Actavis. The registration statement was declared effective
by the SEC on January 26, 2015. Each of Allergan and Actavis commenced
mailing the joint proxy statement/prospectus to its stockholders on
January 28, 2015. INVESTORS AND SECURITY HOLDERS OF ALLERGAN AND ACTAVIS
ARE URGED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS AND OTHER
DOCUMENTS THAT HAVE BEEN FILED OR WILL BE FILED WITH THE SEC CAREFULLY
AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY CONTAIN OR
WILL CONTAIN IMPORTANT INFORMATION. Investors and security holders are
able to obtain free copies of the registration statement and the joint
proxy statement/prospectus and other documents filed with the SEC by
Allergan and Actavis through the website maintained by the SEC at
http://www.sec.gov. Copies of the documents filed with the SEC by
Allergan are available free of charge on Allergan's internet website at
www.Allergan.com or by contacting Allergan's Investor Relations
Department at (714) 246-4636. Copies of the documents filed with the SEC
by Actavis are available free of charge on Actavis' internet website at
www.Actavis.com or by contacting Actavis' Investor Relations Department
at (862) 261-7488.
Participants in the Merger Solicitation
Actavis, Allergan, their respective directors and certain of their
executive officers and employees may be considered participants in the
solicitation of proxies in connection with the proposed transaction.
Information regarding the persons who may, under the rules of the SEC,
be deemed participants in the solicitation of the Actavis and Allergan
shareholders in connection with the proposed merger is set forth in the
joint proxy statement/prospectus. Information about the directors and
executive officers of Allergan is set forth in its proxy statement for
its 2014 annual meeting of stockholders, which was filed with the SEC on
March 26, 2014 and certain of its Current Reports on Form 8-K.
Information about the directors and executive officers of Actavis is set
forth in Actavis' proxy statement for its 2014 annual meeting of
stockholders, which was filed with the SEC on March 28, 2014 and certain
of Actavis' Current Reports on Form 8-K. Additional information
regarding the participants in the proxy solicitations and a description
of their direct and indirect interests, by security holdings or
otherwise, is contained in the joint proxy statement/prospectus filed
with the above-referenced registration statement on Form S-4 and other
relevant materials to be filed with the SEC when they become available.
® 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, 2014
|
|
|
|
December 31, 2013
|
|
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
Adjustments
|
|
|
|
|
|
Non-GAAP
|
|
|
|
GAAP
|
|
|
Adjustments
|
|
|
|
|
|
Non-GAAP
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product net sales
|
|
|
|
$
|
1,889.0
|
|
|
|
$
|
-
|
|
|
|
|
|
|
$
|
1,889.0
|
|
|
|
|
$
|
1,659.6
|
|
|
|
$
|
-
|
|
|
|
|
|
|
$
|
1,659.6
|
|
Other revenues
|
|
|
|
|
21.5
|
|
|
|
|
-
|
|
|
|
|
|
|
|
21.5
|
|
|
|
|
|
24.8
|
|
|
|
|
-
|
|
|
|
|
|
|
|
24.8
|
|
|
|
|
|
|
1,910.5
|
|
|
|
|
-
|
|
|
|
|
|
|
|
1,910.5
|
|
|
|
|
|
1,684.4
|
|
|
|
|
-
|
|
|
|
|
|
|
|
1,684.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales (excludes amortization of intangible assets)
|
|
|
|
|
209.1
|
|
|
|
|
(2.4
|
)
|
|
|
(a)(b)
|
|
|
|
206.7
|
|
|
|
|
|
204.6
|
|
|
|
|
-
|
|
|
|
|
|
|
|
204.6
|
|
Selling, general and administrative
|
|
|
|
|
745.0
|
|
|
|
|
(115.7
|
)
|
|
|
(a)(b)(c)(d)(e)
|
|
|
|
629.3
|
|
|
|
|
|
715.4
|
|
|
|
|
(67.6
|
)
|
|
|
(l)(m)(n)(o)
|
|
|
|
647.8
|
|
Research and development
|
|
|
|
|
265.4
|
|
|
|
|
(15.0
|
)
|
|
|
(a)(b)
|
|
|
|
250.4
|
|
|
|
|
|
269.4
|
|
|
|
|
(0.2
|
)
|
|
|
(o)
|
|
|
|
269.2
|
|
Amortization of intangible assets
|
|
|
|
|
27.6
|
|
|
|
|
(26.1
|
)
|
|
|
(f)
|
|
|
|
1.5
|
|
|
|
|
|
28.2
|
|
|
|
|
(27.0
|
)
|
|
|
(f)
|
|
|
|
1.2
|
|
Impairment of intangible assets and related costs
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
11.4
|
|
|
|
|
(11.4
|
)
|
|
|
(p)
|
|
|
|
-
|
|
Restructuring charges
|
|
|
|
|
36.7
|
|
|
|
|
(36.7
|
)
|
|
|
(g)
|
|
|
|
-
|
|
|
|
|
|
0.6
|
|
|
|
|
(0.6
|
)
|
|
|
(g)
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
|
626.7
|
|
|
|
|
195.9
|
|
|
|
|
|
|
|
822.6
|
|
|
|
|
|
454.8
|
|
|
|
|
106.8
|
|
|
|
|
|
|
|
561.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-operating income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
|
|
1.5
|
|
|
|
|
-
|
|
|
|
|
|
|
|
1.5
|
|
|
|
|
|
1.7
|
|
|
|
|
-
|
|
|
|
|
|
|
|
1.7
|
|
Interest expense
|
|
|
|
|
(15.6
|
)
|
|
|
|
-
|
|
|
|
|
|
|
|
(15.6
|
)
|
|
|
|
|
(18.2
|
)
|
|
|
|
0.1
|
|
|
|
(q)
|
|
|
|
(18.1
|
)
|
Other, net
|
|
|
|
|
21.3
|
|
|
|
|
(15.1
|
)
|
|
|
(h)(i)
|
|
|
|
6.2
|
|
|
|
|
|
2.7
|
|
|
|
|
(6.1
|
)
|
|
|
(r)
|
|
|
|
(3.4
|
)
|
|
|
|
|
|
7.2
|
|
|
|
|
(15.1
|
)
|
|
|
|
|
|
|
(7.9
|
)
|
|
|
|
|
(13.8
|
)
|
|
|
|
(6.0
|
)
|
|
|
|
|
|
|
(19.8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations before income taxes
|
|
|
|
|
633.9
|
|
|
|
|
180.8
|
|
|
|
|
|
|
|
814.7
|
|
|
|
|
|
441.0
|
|
|
|
|
100.8
|
|
|
|
|
|
|
|
541.8
|
|
Provision for income taxes
|
|
|
|
|
91.3
|
|
|
|
|
57.5
|
|
|
|
(j)
|
|
|
|
148.8
|
|
|
|
|
|
128.4
|
|
|
|
|
8.5
|
|
|
|
(s)
|
|
|
|
136.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations
|
|
|
|
|
542.6
|
|
|
|
|
123.3
|
|
|
|
|
|
|
|
665.9
|
|
|
|
|
|
312.6
|
|
|
|
|
92.3
|
|
|
|
|
|
|
|
404.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from discontinued operations, net of income tax expense
of $0.5 million
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
1.0
|
|
|
|
|
(1.0
|
)
|
|
|
(t)
|
|
|
|
-
|
|
Loss on sale of discontinued operations, net of income tax expense
(benefit) of $1.6 million and $(2.0) million, respectively
|
|
|
|
|
(3.5
|
)
|
|
|
|
3.5
|
|
|
|
(k)
|
|
|
|
-
|
|
|
|
|
|
(1.3
|
)
|
|
|
|
1.3
|
|
|
|
(k)
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations
|
|
|
|
|
(3.5
|
)
|
|
|
|
3.5
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
(0.3
|
)
|
|
|
|
0.3
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
|
|
|
|
|
539.1
|
|
|
|
|
126.8
|
|
|
|
|
|
|
|
665.9
|
|
|
|
|
|
312.3
|
|
|
|
|
92.6
|
|
|
|
|
|
|
|
404.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) attributable to noncontrolling interest
|
|
|
|
|
1.9
|
|
|
|
|
-
|
|
|
|
|
|
|
|
1.9
|
|
|
|
|
|
(0.6
|
)
|
|
|
|
-
|
|
|
|
|
|
|
|
(0.6
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings attributable to Allergan, Inc.
|
|
|
|
$
|
537.2
|
|
|
|
$
|
126.8
|
|
|
|
|
|
|
$
|
664.0
|
|
|
|
|
$
|
312.9
|
|
|
|
$
|
92.6
|
|
|
|
|
|
|
$
|
405.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share attributable to Allergan, Inc.
stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
|
$
|
1.81
|
|
|
|
|
|
|
|
|
|
$
|
2.23
|
|
|
|
|
$
|
1.06
|
|
|
|
|
|
|
|
|
|
$
|
1.37
|
|
Discontinued operations
|
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
|
-
|
|
Net basic earnings per share attributable to Allergan, Inc.
stockholders
|
|
|
|
$
|
1.80
|
|
|
|
|
|
|
|
|
|
$
|
2.23
|
|
|
|
|
$
|
1.05
|
|
|
|
|
|
|
|
|
|
$
|
1.37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share attributable to Allergan, Inc.
stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
|
$
|
1.77
|
|
|
|
|
|
|
|
|
|
$
|
2.17
|
|
|
|
|
$
|
1.04
|
|
|
|
|
|
|
|
|
|
$
|
1.35
|
|
Discontinued operations
|
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
-
|
|
Net diluted earnings per share attributable to Allergan, Inc.
stockholders
|
|
|
|
$
|
1.76
|
|
|
|
|
|
|
|
|
|
$
|
2.17
|
|
|
|
|
$
|
1.04
|
|
|
|
|
|
|
|
|
|
$
|
1.35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
298.2
|
|
|
|
|
|
|
|
|
|
|
298.2
|
|
|
|
|
|
296.8
|
|
|
|
|
|
|
|
|
|
|
296.8
|
|
Diluted
|
|
|
|
|
305.4
|
|
|
|
|
|
|
|
|
|
|
305.4
|
|
|
|
|
|
301.4
|
|
|
|
|
|
|
|
|
|
|
301.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected ratio as a percentage of product
net sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales (excludes amortization of intangible assets)
|
|
|
|
|
11.1
|
%
|
|
|
|
|
|
|
|
|
|
10.9
|
%
|
|
|
|
|
12.3
|
%
|
|
|
|
|
|
|
|
|
|
12.3
|
%
|
Selling, general and administrative
|
|
|
|
|
39.4
|
%
|
|
|
|
|
|
|
|
|
|
33.3
|
%
|
|
|
|
|
43.1
|
%
|
|
|
|
|
|
|
|
|
|
39.0
|
%
|
Research and development
|
|
|
|
|
14.0
|
%
|
|
|
|
|
|
|
|
|
|
13.3
|
%
|
|
|
|
|
16.2
|
%
|
|
|
|
|
|
|
|
|
|
16.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
|
Expenses related to the global restructuring announced in July 2014
of $59.6 million, consisting of cost of sales of $1.7 million,
selling, general and administrative expenses of $43.0 million and
research and development expenses of $14.9 million
|
(b)
|
|
|
Expenses related to the realignment of various business functions of
$1.1 million, consisting of cost of sales of $0.7 million, selling,
general and administrative expenses of $0.3 million and research and
development expenses of $0.1 million
|
(c)
|
|
|
Costs of $67.5 million associated with the Allergan Board of
Directors' consideration and rejection of an unsolicited proposal
from Valeant Pharmaceuticals International, Inc. (Valeant) to
acquire all of the outstanding shares of Allergan, consisting
primarily of investment banker fees, legal fees, public relations
costs, accounting services and other costs
|
(d)
|
|
|
Expenses from changes in fair value of contingent consideration of
$0.4 million and transaction costs of $0.1 million associated with
business combinations
|
(e)
|
|
|
Expenses of $4.4 million related to the announced Actavis plc
(Actavis) transaction and pre-integration planning costs
|
(f)
|
|
|
Amortization of certain intangible assets related to business
combinations, asset acquisitions and product licenses
|
(g)
|
|
|
Net restructuring charges
|
(h)
|
|
|
Unrealized gain of $18.2 million on the mark-to-market adjustment to
derivative instruments
|
(i)
|
|
|
Impairment of a non-marketable equity investment of $3.1 million
|
(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 $180.8 million
|
|
|
|
$
|
(57.8
|
)
|
|
|
|
|
|
Change in estimated taxes related to tax positions included in prior
year filings
|
|
|
|
|
0.3
|
|
|
|
|
|
|
|
|
|
|
$
|
(57.5
|
)
|
(k)
|
|
|
Loss on the sale of discontinued operations
|
(l)
|
|
|
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
|
(m)
|
|
|
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
|
(n)
|
|
|
Transaction costs of $0.7 million associated with a licensing
agreement with Medytox, Inc.
|
(o)
|
|
|
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
|
(p)
|
|
|
Impairment of an intangible asset related to technology acquired in
connection with the 2011 acquisition of Precision Light, Inc.
|
(q)
|
|
|
Interest expense associated with changes in estimated taxes related
to uncertain tax positions included in prior year filings
|
(r)
|
|
|
Unrealized gain on the mark-to-market adjustment to derivative
instruments
|
(s)
|
|
|
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
|
)
|
(t)
|
|
|
Earnings from discontinued operations associated with the sale of
the obesity intervention business unit
|
"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, 2014 and
December 31, 2013. 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 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 earnings (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, 2014
|
|
|
December 31, 2013
|
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
Adjustments
|
|
|
|
|
|
Non-GAAP
|
|
|
GAAP
|
|
|
Adjustments
|
|
|
|
|
|
Non-GAAP
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product net sales
|
|
|
$
|
7,126.1
|
|
|
|
$
|
-
|
|
|
|
|
|
|
$
|
7,126.1
|
|
|
|
$
|
6,197.5
|
|
|
|
$
|
-
|
|
|
|
|
|
|
$
|
6,197.5
|
|
Other revenues
|
|
|
|
111.8
|
|
|
|
|
(9.7
|
)
|
|
|
(a)
|
|
|
|
102.1
|
|
|
|
|
102.9
|
|
|
|
|
-
|
|
|
|
|
|
|
|
102.9
|
|
|
|
|
|
7,237.9
|
|
|
|
|
(9.7
|
)
|
|
|
|
|
|
|
7,228.2
|
|
|
|
|
6,300.4
|
|
|
|
|
-
|
|
|
|
|
|
|
|
6,300.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales (excludes amortization of intangible assets)
|
|
|
|
842.4
|
|
|
|
|
(5.2
|
)
|
|
|
(b)(c)
|
|
|
|
837.2
|
|
|
|
|
795.8
|
|
|
|
|
(9.0
|
)
|
|
|
(r)(s)
|
|
|
|
786.8
|
|
Selling, general and administrative
|
|
|
|
2,837.2
|
|
|
|
|
(252.7
|
)
|
|
|
(b)(c)(d)(e)(f)(g)(h)(i)(j)
|
|
|
|
2,584.5
|
|
|
|
|
2,519.4
|
|
|
|
|
(96.1
|
)
|
|
|
(s)(t)(u)(v)(w)
|
|
|
|
2,423.3
|
|
Research and development
|
|
|
|
1,191.6
|
|
|
|
|
(114.1
|
)
|
|
|
(b)(c)(e)(i)(j)
|
|
|
|
1,077.5
|
|
|
|
|
1,042.3
|
|
|
|
|
(7.6
|
)
|
|
|
(v)(w)
|
|
|
|
1,034.7
|
|
Amortization of intangible assets
|
|
|
|
112.4
|
|
|
|
|
(106.5
|
)
|
|
|
(k)
|
|
|
|
5.9
|
|
|
|
|
116.7
|
|
|
|
|
(107.4
|
)
|
|
|
(k)
|
|
|
|
9.3
|
|
Impairment of intangible assets and related costs
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
|
|
-
|
|
|
|
|
11.4
|
|
|
|
|
(11.4
|
)
|
|
|
(x)
|
|
|
|
-
|
|
Restructuring charges
|
|
|
|
245.0
|
|
|
|
|
(245.0
|
)
|
|
|
(l)
|
|
|
|
-
|
|
|
|
|
5.5
|
|
|
|
|
(5.5
|
)
|
|
|
(l)
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
2,009.3
|
|
|
|
|
713.8
|
|
|
|
|
|
|
|
2,723.1
|
|
|
|
|
1,809.3
|
|
|
|
|
237.0
|
|
|
|
|
|
|
|
2,046.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-operating income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
|
7.7
|
|
|
|
|
-
|
|
|
|
|
|
|
|
7.7
|
|
|
|
|
6.8
|
|
|
|
|
-
|
|
|
|
|
|
|
|
6.8
|
|
Interest expense
|
|
|
|
(69.4
|
)
|
|
|
|
(2.0
|
)
|
|
|
(m)
|
|
|
|
(71.4
|
)
|
|
|
|
(75.0
|
)
|
|
|
|
0.4
|
|
|
|
(m)
|
|
|
|
(74.6
|
)
|
Other, net
|
|
|
|
41.7
|
|
|
|
|
(34.1
|
)
|
|
|
(n)(o)
|
|
|
|
7.6
|
|
|
|
|
(10.3
|
)
|
|
|
|
(7.4
|
)
|
|
|
(y)(z)(aa)
|
|
|
|
(17.7
|
)
|
|
|
|
|
(20.0
|
)
|
|
|
|
(36.1
|
)
|
|
|
|
|
|
|
(56.1
|
)
|
|
|
|
(78.5
|
)
|
|
|
|
(7.0
|
)
|
|
|
|
|
|
|
(85.5
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations before income taxes
|
|
|
|
1,989.3
|
|
|
|
|
677.7
|
|
|
|
|
|
|
|
2,667.0
|
|
|
|
|
1,730.8
|
|
|
|
|
230.0
|
|
|
|
|
|
|
|
1,960.8
|
|
Provision for income taxes
|
|
|
|
456.7
|
|
|
|
|
184.3
|
|
|
|
(p)
|
|
|
|
641.0
|
|
|
|
|
458.3
|
|
|
|
|
59.8
|
|
|
|
(ab)
|
|
|
|
518.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations
|
|
|
|
1,532.6
|
|
|
|
|
493.4
|
|
|
|
|
|
|
|
2,026.0
|
|
|
|
|
1,272.5
|
|
|
|
|
170.2
|
|
|
|
|
|
|
|
1,442.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from discontinued operations, net of income tax expense
of $6.9 million
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
|
|
-
|
|
|
|
|
14.1
|
|
|
|
|
(14.1
|
)
|
|
|
(ac)
|
|
|
|
-
|
|
Loss on sale of discontinued operations, net of income tax expense
(benefit) of $1.3 million and $(110.3) million, respectively
|
|
|
|
(3.8
|
)
|
|
|
|
3.8
|
|
|
|
(q)
|
|
|
|
-
|
|
|
|
|
(297.9
|
)
|
|
|
|
297.9
|
|
|
|
(q)
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations
|
|
|
|
(3.8
|
)
|
|
|
|
3.8
|
|
|
|
|
|
|
|
-
|
|
|
|
|
(283.8
|
)
|
|
|
|
283.8
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
|
|
|
|
1,528.8
|
|
|
|
|
497.2
|
|
|
|
|
|
|
|
2,026.0
|
|
|
|
|
988.7
|
|
|
|
|
454.0
|
|
|
|
|
|
|
|
1,442.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings attributable to noncontrolling interest
|
|
|
|
4.6
|
|
|
|
|
-
|
|
|
|
|
|
|
|
4.6
|
|
|
|
|
3.6
|
|
|
|
|
-
|
|
|
|
|
|
|
|
3.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings attributable to Allergan, Inc.
|
|
|
$
|
1,524.2
|
|
|
|
$
|
497.2
|
|
|
|
|
|
|
$
|
2,021.4
|
|
|
|
$
|
985.1
|
|
|
|
$
|
454.0
|
|
|
|
|
|
|
$
|
1,439.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share attributable to Allergan, Inc.
stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
$
|
5.13
|
|
|
|
|
|
|
|
|
|
$
|
6.79
|
|
|
|
$
|
4.28
|
|
|
|
|
|
|
|
|
|
$
|
4.85
|
|
Discontinued operations
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
(0.96
|
)
|
|
|
|
|
|
|
|
|
|
-
|
|
Net basic earnings per share attributable to Allergan, Inc.
stockholders
|
|
|
$
|
5.12
|
|
|
|
|
|
|
|
|
|
$
|
6.79
|
|
|
|
$
|
3.32
|
|
|
|
|
|
|
|
|
|
$
|
4.85
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share attributable to Allergan, Inc.
stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
$
|
5.03
|
|
|
|
|
|
|
|
|
|
$
|
6.65
|
|
|
|
$
|
4.20
|
|
|
|
|
|
|
|
|
|
$
|
4.77
|
|
Discontinued operations
|
|
|
|
(0.02
|
)
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
(0.94
|
)
|
|
|
|
|
|
|
|
|
|
-
|
|
Net diluted earnings per share attributable to Allergan, Inc.
stockholders
|
|
|
$
|
5.01
|
|
|
|
|
|
|
|
|
|
$
|
6.65
|
|
|
|
$
|
3.26
|
|
|
|
|
|
|
|
|
|
$
|
4.77
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
297.6
|
|
|
|
|
|
|
|
|
|
|
297.6
|
|
|
|
|
296.8
|
|
|
|
|
|
|
|
|
|
|
296.8
|
|
Diluted
|
|
|
|
304.0
|
|
|
|
|
|
|
|
|
|
|
304.0
|
|
|
|
|
301.8
|
|
|
|
|
|
|
|
|
|
|
301.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected ratio as a percentage of product
net sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales (excludes amortization of intangible assets)
|
|
|
|
11.8
|
%
|
|
|
|
|
|
|
|
|
|
11.7
|
%
|
|
|
|
12.8
|
%
|
|
|
|
|
|
|
|
|
|
12.7
|
%
|
Selling, general and administrative
|
|
|
|
39.8
|
%
|
|
|
|
|
|
|
|
|
|
36.3
|
%
|
|
|
|
40.7
|
%
|
|
|
|
|
|
|
|
|
|
39.1
|
%
|
Research and development
|
|
|
|
16.7
|
%
|
|
|
|
|
|
|
|
|
|
15.1
|
%
|
|
|
|
16.8
|
%
|
|
|
|
|
|
|
|
|
|
16.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
|
Sales milestone revenue associated with a license agreement with
Senju Pharmaceutical Co., Ltd. (Senju)
|
(b)
|
|
|
Expenses related to the global restructuring announced in July 2014
of $80.5 million, consisting of cost of sales of $2.0 million,
selling, general and administrative expenses of $57.5 million and
research and development expenses of $21.0 million
|
(c)
|
|
|
Expenses related to the realignment of various business functions of
$12.0 million, consisting of cost of sales of $3.2 million, selling,
general and administrative expenses of $6.1 million and research and
development expenses of $2.7 million
|
(d)
|
|
|
Costs of $128.0 million associated with the Allergan Board of
Directors' consideration and rejection of an unsolicited proposal
from Valeant to acquire all of the outstanding shares of Allergan,
consisting primarily of investment banker fees, legal fees, public
relations costs, accounting services and other costs
|
(e)
|
|
|
Income from changes in fair value of contingent consideration of
$15.1 million included in selling, general and administrative
expenses and integration and transaction costs of $1.7 million
associated with business combinations, consisting of selling,
general and administrative expenses of $1.3 million and research and
development expenses of $0.4 million
|
(f)
|
|
|
Estimated bad debt expense of $37.3 million due to changes in
Venezuela's foreign exchange system and administration by the
National Center for Foreign Commerce (CENCOEX), which is severely
limiting U.S. dollar payments for older receivables due from
customers in Venezuela
|
(g)
|
|
|
Estimated catch-up adjustment of $32.2 million in accordance with
final regulations issued by the U.S. Internal Revenue Service (IRS)
governing administration of the annual fee on branded prescription
drug manufacturers and importers
|
(h)
|
|
|
Expenses of $4.4 million related to the announced Actavis
transaction and pre-integration planning costs
|
(i)
|
|
|
Upfront licensing fee of $65.0 million and subsequent development
milestone payment of $15.0 million included in research and
development expenses associated with a license agreement with
Medytox, Inc. for technology that has not achieved regulatory
approval and related transaction costs of $0.4 million included in
selling, general and administrative expenses
|
(j)
|
|
|
Acquired in-process research and development asset of $10.0 million
included in research and development expenses for technology that
has not achieved regulatory approval and related transaction costs
of $0.6 million included in selling, general and administrative
expenses
|
(k)
|
|
|
Amortization of certain intangible assets related to business
combinations, asset acquisitions and product licenses
|
(l)
|
|
|
Net restructuring charges
|
(m)
|
|
|
Interest income (expense) associated with changes in estimated taxes
related to uncertain tax positions included in prior year filings
|
(n)
|
|
|
Unrealized gain of $37.2 million on the mark-to-market adjustment to
derivative instruments
|
(o)
|
|
|
Impairment of a non-marketable equity investment of $3.1 million
|
(p)
|
|
|
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 $677.7 million
|
|
|
|
$
|
(171.0
|
)
|
|
|
|
|
|
Change in estimated taxes related to tax positions included in prior
year filings
|
|
|
|
|
(13.3
|
)
|
|
|
|
|
|
|
|
|
|
$
|
(184.3
|
)
|
(q)
|
|
|
Loss on the sale of discontinued operations
|
(r)
|
|
|
Fair market value inventory adjustment rollout of $8.9 million
associated with the acquisition of SkinMedica, Inc.
|
(s)
|
|
|
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
|
(t)
|
|
|
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
|
(u)
|
|
|
Transaction costs of $1.0 million associated with a licensing
agreement with Medytox, Inc.
|
(v)
|
|
|
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
|
(w)
|
|
|
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
|
(x)
|
|
|
Impairment of an intangible asset related to technology acquired in
connection with the 2011 acquisition of Precision Light, Inc.
|
(y)
|
|
|
Unrealized gain of $10.4 million on the mark-to-market adjustment to
derivative instruments
|
(z)
|
|
|
Gain on sale of investments of $0.7 million
|
(aa)
|
|
|
Impairment of a non-marketable equity investment of $3.7 million
|
(ab)
|
|
|
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
|
)
|
(ac)
|
|
|
Earnings from discontinued operations associated with the sale of
the obesity intervention business unit
|
|
ALLERGAN, INC.
|
Condensed Consolidated Balance Sheets
|
(Unaudited)
|
|
|
|
|
December 31,
|
|
|
December 31,
|
in millions
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and equivalents
|
|
|
$
|
4,911.4
|
|
|
|
$
|
3,046.1
|
|
Short-term investments
|
|
|
|
55.0
|
|
|
|
|
603.0
|
|
Trade receivables, net
|
|
|
|
914.5
|
|
|
|
|
883.3
|
|
Inventories
|
|
|
|
296.0
|
|
|
|
|
285.3
|
|
Other current assets
|
|
|
|
694.3
|
|
|
|
|
493.0
|
|
Assets of discontinued operations
|
|
|
|
-
|
|
|
|
|
9.0
|
|
|
|
|
|
|
|
|
Total current assets
|
|
|
|
6,871.2
|
|
|
|
|
5,319.7
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
|
|
1,006.3
|
|
|
|
|
923.2
|
|
Intangible assets, net
|
|
|
|
1,786.5
|
|
|
|
|
1,650.0
|
|
Goodwill
|
|
|
|
2,392.9
|
|
|
|
|
2,339.4
|
|
Other noncurrent assets
|
|
|
|
358.8
|
|
|
|
|
342.0
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
$
|
12,415.7
|
|
|
|
$
|
10,574.3
|
|
|
|
|
|
|
|
|
Liabilities and equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes payable
|
|
|
$
|
72.1
|
|
|
|
$
|
55.6
|
|
Accounts payable
|
|
|
|
287.4
|
|
|
|
|
283.2
|
|
Other accrued expenses and income taxes
|
|
|
|
1,197.8
|
|
|
|
|
905.5
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
|
1,557.3
|
|
|
|
|
1,244.3
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
|
2,085.3
|
|
|
|
|
2,098.3
|
|
Other liabilities
|
|
|
|
1,010.1
|
|
|
|
|
762.2
|
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
Allergan, Inc. stockholders' equity
|
|
|
|
7,753.0
|
|
|
|
|
6,463.2
|
|
Noncontrolling interest
|
|
|
|
10.0
|
|
|
|
|
6.3
|
|
|
|
|
|
|
|
|
Total equity
|
|
|
|
7,763.0
|
|
|
|
|
6,469.5
|
|
|
|
|
|
|
|
|
Total liabilities and equity
|
|
|
$
|
12,415.7
|
|
|
|
$
|
10,574.3
|
|
|
|
|
|
|
|
|
DSO
|
|
|
|
44
|
|
|
|
|
49
|
|
DOH
|
|
|
|
129
|
|
|
|
|
127
|
|
|
|
|
|
|
|
|
Cash and equivalents and short-term investments
|
|
|
$
|
4,966.4
|
|
|
|
$
|
3,649.1
|
|
Total notes payable and long-term debt
|
|
|
|
(2,157.4
|
)
|
|
|
|
(2,153.9
|
)
|
|
|
|
|
|
|
|
Cash and equivalents and short-term investments, net of debt
|
|
|
$
|
2,809.0
|
|
|
|
$
|
1,495.2
|
|
|
|
|
|
|
|
|
Debt-to-capital percentage
|
|
|
|
21.7
|
%
|
|
|
|
25.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
|
2014
|
|
|
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations
|
|
|
$
|
542.6
|
|
|
|
|
|
|
$
|
312.6
|
|
Less net earnings (loss) attributable to noncontrolling interest
|
|
|
|
1.9
|
|
|
|
|
|
|
|
(0.6
|
)
|
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations attributable to Allergan, Inc.
|
|
|
|
540.7
|
|
|
|
|
|
|
|
313.2
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP pre-tax adjustments:
|
|
|
|
|
|
|
|
|
|
Expenses related to the global restructuring announced in July 2014
|
|
|
|
59.6
|
|
|
|
|
|
|
|
-
|
|
Expenses related to the realignment of various business functions
|
|
|
|
1.1
|
|
|
|
|
|
|
|
0.3
|
|
Costs associated with the Allergan Board of Directors'
consideration and rejection of an unsolicited proposal from
Valeant to acquire all of the outstanding shares of Allergan
|
|
|
|
67.5
|
|
|
|
|
|
|
|
-
|
|
Expenses from changes in fair value of contingent consideration
and integration and transaction costs associated with business
combinations
|
|
|
|
0.5
|
|
|
|
|
|
|
|
67.3
|
|
Expenses related to the announced Actavis transaction and
pre-integration planning costs
|
|
|
|
4.4
|
|
|
|
|
|
|
|
-
|
|
Amortization of intangible assets
|
|
|
|
26.1
|
|
|
|
|
|
|
|
27.0
|
|
Net restructuring charges
|
|
|
|
36.7
|
|
|
|
|
|
|
|
0.6
|
|
Unrealized gain on derivative instruments
|
|
|
|
(18.2
|
)
|
|
|
|
|
|
|
(6.1
|
)
|
Impairment of a non-marketable equity investment
|
|
|
|
3.1
|
|
|
|
|
|
|
|
-
|
|
External costs for stockholder derivative litigation associated with
the DOJ settlement
|
|
|
|
-
|
|
|
|
|
|
|
|
(0.5
|
)
|
Transaction costs associated with a licensing agreement with
Medytox, Inc.
|
|
|
|
-
|
|
|
|
|
|
|
|
0.7
|
|
Impairment of an intangible asset related to technology acquired
in connection with the 2011 acquisition of Precision Light, Inc.
|
|
|
|
-
|
|
|
|
|
|
|
|
11.4
|
|
Interest expense associated with changes in estimated taxes
related to uncertain tax positions included in prior year filings
|
|
|
|
-
|
|
|
|
|
|
|
|
0.1
|
|
|
|
|
|
721.5
|
|
|
|
|
|
|
|
414.0
|
|
|
|
|
|
|
|
|
|
|
|
Tax effect for above items
|
|
|
|
(57.5
|
)
|
|
|
|
|
|
|
(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
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP earnings from continuing operations
|
|
|
$
|
664.0
|
|
|
|
|
|
|
$
|
405.5
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares outstanding
|
|
|
|
298.2
|
|
|
|
|
|
|
|
296.8
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
7.2
|
|
|
|
|
|
|
|
4.6
|
|
|
|
|
|
305.4
|
|
|
|
|
|
|
|
301.4
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share from continuing operations
|
|
|
$
|
1.77
|
|
|
|
|
|
|
$
|
1.04
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP earnings per share adjustments:
|
|
|
|
|
|
|
|
|
|
Expenses related to the global restructuring announced in July 2014
|
|
|
|
0.13
|
|
|
|
|
|
|
|
-
|
|
Expenses related to the realignment of various business functions
|
|
|
|
0.01
|
|
|
|
|
|
|
|
-
|
|
Costs associated with the Allergan Board of Directors'
consideration and rejection of an unsolicited proposal from
Valeant to acquire all of the outstanding shares of Allergan
|
|
|
|
0.14
|
|
|
|
|
|
|
|
-
|
|
Expenses from changes in fair value of contingent consideration
and integration and transaction costs associated with business
combinations
|
|
|
|
-
|
|
|
|
|
|
|
|
0.22
|
|
Expenses related to the announced Actavis transaction and
pre-integration planning costs
|
|
|
|
0.01
|
|
|
|
|
|
|
|
-
|
|
Amortization of intangible assets
|
|
|
|
0.06
|
|
|
|
|
|
|
|
0.06
|
|
Net restructuring charges
|
|
|
|
0.08
|
|
|
|
|
|
|
|
-
|
|
Unrealized gain on derivative instruments
|
|
|
|
(0.04
|
)
|
|
|
|
|
|
|
(0.01
|
)
|
Impairment of a non-marketable equity investment
|
|
|
|
0.01
|
|
|
|
|
|
|
|
-
|
|
Impairment of an intangible asset related to technology acquired
in connection with the 2011 acquisition of Precision Light, Inc.
|
|
|
|
-
|
|
|
|
|
|
|
|
0.03
|
|
Change in estimated taxes related to uncertain tax positions
included in prior year filings
|
|
|
|
-
|
|
|
|
|
|
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted earnings per share from continuing operations
|
|
|
$
|
2.17
|
|
|
|
|
|
|
$
|
1.35
|
|
|
|
|
|
|
|
|
|
|
|
Year over year change
|
|
|
|
|
|
60.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
|
2014
|
|
|
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations
|
|
|
$
|
1,532.6
|
|
|
|
|
|
|
$
|
1,272.5
|
|
Less net earnings attributable to noncontrolling interest
|
|
|
|
4.6
|
|
|
|
|
|
|
|
3.6
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations attributable to Allergan, Inc.
|
|
|
|
1,528.0
|
|
|
|
|
|
|
|
1,268.9
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP pre-tax adjustments:
|
|
|
|
|
|
|
|
|
|
Sales milestone revenue associated with a license agreement with
Senju
|
|
|
|
(9.7
|
)
|
|
|
|
|
|
|
-
|
|
Expenses related to the global restructuring announced in July 2014
|
|
|
|
80.5
|
|
|
|
|
|
|
|
-
|
|
Expenses related to the realignment of various business functions
|
|
|
|
12.0
|
|
|
|
|
|
|
|
2.8
|
|
Costs associated with the Allergan Board of Directors'
consideration and rejection of an unsolicited proposal from
Valeant to acquire all of the outstanding shares of Allergan
|
|
|
|
128.0
|
|
|
|
|
|
|
|
-
|
|
(Income) expenses from changes in fair value of contingent
consideration and integration and transaction costs associated
with business combinations
|
|
|
|
(13.4
|
)
|
|
|
|
|
|
|
90.3
|
|
Estimated bad debt expense due to changes in Venezuela's foreign
exchange system and administration by CENCOEX
|
|
|
|
37.3
|
|
|
|
|
|
|
|
-
|
|
Estimated catch-up adjustment in accordance with final regulations
issued by the IRS governing administration of the annual fee on
branded prescription drug manufacturers and importers
|
|
|
|
32.2
|
|
|
|
|
|
|
|
-
|
|
Expenses related to the announced Actavis transaction and
pre-integration planning costs
|
|
|
|
4.4
|
|
|
|
|
|
|
|
-
|
|
Research and development expenses related to upfront licensing
fees and milestone payments associated with license and
collaboration agreements for technologies that have not achieved
regulatory approval and related transaction costs
|
|
|
|
80.4
|
|
|
|
|
|
|
|
6.6
|
|
Acquired in-process research and development asset included in
research and development expenses for technology that has not
achieved regulatory approval and related transaction costs
|
|
|
|
10.6
|
|
|
|
|
|
|
|
-
|
|
Amortization of intangible assets
|
|
|
|
106.5
|
|
|
|
|
|
|
|
107.4
|
|
Net restructuring charges
|
|
|
|
245.0
|
|
|
|
|
|
|
|
5.5
|
|
Interest (income) expense associated with changes in estimated
taxes related to uncertain tax positions included in prior year
filings
|
|
|
|
(2.0
|
)
|
|
|
|
|
|
|
0.4
|
|
Unrealized gain on derivative instruments
|
|
|
|
(37.2
|
)
|
|
|
|
|
|
|
(10.4
|
)
|
Impairment of a non-marketable equity investment
|
|
|
|
3.1
|
|
|
|
|
|
|
|
3.7
|
|
Fair market value inventory adjustment rollout associated with the
acquisition of SkinMedica, Inc.
|
|
|
|
-
|
|
|
|
|
|
|
|
8.9
|
|
Aggregate charges for external costs for stockholder derivative
litigation associated with the DOJ settlement and other legal
contingency expenses
|
|
|
|
-
|
|
|
|
|
|
|
|
3.1
|
|
Transaction costs associated with a licensing agreement with
Medytox, Inc.
|
|
|
|
-
|
|
|
|
|
|
|
|
1.0
|
|
Impairment of an intangible asset related to technology acquired
in connection with the 2011 acquisition of Precision Light, Inc.
|
|
|
|
-
|
|
|
|
|
|
|
|
11.4
|
|
Gain on sale of investments
|
|
|
|
-
|
|
|
|
|
|
|
|
(0.7
|
)
|
|
|
|
|
2,205.7
|
|
|
|
|
|
|
|
1,498.9
|
|
|
|
|
|
|
|
|
|
|
|
Tax effect for above items
|
|
|
|
(171.0
|
)
|
|
|
|
|
|
|
(47.2
|
)
|
Change in estimated taxes related to tax positions included in prior
year filings
|
|
|
|
(13.3
|
)
|
|
|
|
|
|
|
2.5
|
|
Estimated impact of the retroactive U.S. Research and Development
tax credit for 2012
|
|
|
|
-
|
|
|
|
|
|
|
|
(15.1
|
)
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP earnings from continuing operations
|
|
|
$
|
2,021.4
|
|
|
|
|
|
|
$
|
1,439.1
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares outstanding
|
|
|
|
297.6
|
|
|
|
|
|
|
|
296.8
|
|
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
|
|
|
|
6.4
|
|
|
|
|
|
|
|
5.0
|
|
|
|
|
|
304.0
|
|
|
|
|
|
|
|
301.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share from continuing operations
|
|
|
$
|
5.03
|
|
|
|
|
|
|
$
|
4.20
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP earnings per share adjustments:
|
|
|
|
|
|
|
|
|
|
Sales milestone revenue associated with a license agreement with
Senju
|
|
|
|
(0.02
|
)
|
|
|
|
|
|
|
-
|
|
Expenses related to the global restructuring announced in July 2014
|
|
|
|
0.18
|
|
|
|
|
|
|
|
-
|
|
Expenses related to the realignment of various business functions
|
|
|
|
0.03
|
|
|
|
|
|
|
|
0.01
|
|
Costs associated with the Allergan Board of Directors'
consideration and rejection of an unsolicited proposal from
Valeant to acquire all of the outstanding shares of Allergan
|
|
|
|
0.27
|
|
|
|
|
|
|
|
-
|
|
(Income) expenses from changes in fair value of contingent
consideration and integration and transaction costs associated
with business combinations
|
|
|
|
(0.06
|
)
|
|
|
|
|
|
|
0.28
|
|
Estimated bad debt expense due to changes in Venezuela's foreign
exchange system and administration by CENCOEX
|
|
|
|
0.11
|
|
|
|
|
|
|
|
-
|
|
Estimated catch-up adjustment in accordance with final regulations
issued by the IRS governing administration of the annual fee on
branded prescription drug manufacturers and importers
|
|
|
|
0.11
|
|
|
|
|
|
|
|
-
|
|
Expenses related to the announced Actavis transaction and
pre-integration planning costs
|
|
|
|
0.01
|
|
|
|
|
|
|
|
-
|
|
Research and development expenses related to upfront licensing
fees and milestone payments associated with license and
collaboration agreements for technologies that have not achieved
regulatory approval and related transaction costs
|
|
|
|
0.26
|
|
|
|
|
|
|
|
0.02
|
|
Acquired in-process research and development asset included in
research and development expenses for technology that has not
achieved regulatory approval and related transaction costs
|
|
|
|
0.02
|
|
|
|
|
|
|
|
-
|
|
Amortization of intangible assets
|
|
|
|
0.24
|
|
|
|
|
|
|
|
0.24
|
|
Net restructuring charges
|
|
|
|
0.58
|
|
|
|
|
|
|
|
0.01
|
|
Unrealized gain on derivative instruments
|
|
|
|
(0.08
|
)
|
|
|
|
|
|
|
(0.02
|
)
|
Impairment of a non-marketable equity investment
|
|
|
|
0.01
|
|
|
|
|
|
|
|
0.01
|
|
Change in estimated taxes related to tax positions included in prior
year filings
|
|
|
|
(0.04
|
)
|
|
|
|
|
|
|
0.01
|
|
Fair market value inventory adjustment rollout associated with the
acquisition of SkinMedica, Inc.
|
|
|
|
-
|
|
|
|
|
|
|
|
0.02
|
|
Aggregate charges for external costs for stockholder derivative
litigation associated with the DOJ settlement and other legal
contingency expenses
|
|
|
|
-
|
|
|
|
|
|
|
|
0.01
|
|
Impairment of an intangible asset related to technology acquired
in connection with the 2011 acquisition of Precision Light, Inc.
|
|
|
|
-
|
|
|
|
|
|
|
|
0.03
|
|
Estimated impact of the retroactive U.S. Research and Development
tax credit for 2012
|
|
|
|
-
|
|
|
|
|
|
|
|
(0.05
|
)
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted earnings per share from continuing operations
|
|
|
$
|
6.65
|
|
|
|
|
|
|
$
|
4.77
|
|
|
|
|
|
|
|
|
|
|
|
Year over year change
|
|
|
|
|
|
39.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ALLERGAN, INC.
|
Supplemental Non-GAAP Information
|
(Unaudited)
|
|
|
|
|
|
Three months ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
$ change in net sales
|
|
|
Percent change in net sales
|
in millions
|
|
|
2014
|
|
|
2013
|
|
|
Total
|
|
|
Performance
|
|
|
Currency
|
|
|
Total
|
|
|
Performance
|
|
|
Currency
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eye Care Pharmaceuticals
|
|
|
$
|
881.7
|
|
|
|
$
|
782.2
|
|
|
|
$
|
99.5
|
|
|
|
$
|
123.8
|
|
|
|
$
|
(24.3
|
)
|
|
|
12.7
|
%
|
|
|
15.8
|
%
|
|
|
(3.1
|
)%
|
Botox/Neuromodulators
|
|
|
|
589.3
|
|
|
|
|
525.6
|
|
|
|
|
63.7
|
|
|
|
|
80.0
|
|
|
|
|
(16.3
|
)
|
|
|
12.1
|
%
|
|
|
15.2
|
%
|
|
|
(3.1
|
)%
|
Skin Care and Other
|
|
|
|
135.7
|
|
|
|
|
121.9
|
|
|
|
|
13.8
|
|
|
|
|
14.4
|
|
|
|
|
(0.6
|
)
|
|
|
11.3
|
%
|
|
|
11.8
|
%
|
|
|
(0.5
|
)%
|
Total Specialty Pharmaceuticals
|
|
|
|
1,606.7
|
|
|
|
|
1,429.7
|
|
|
|
|
177.0
|
|
|
|
|
218.2
|
|
|
|
|
(41.2
|
)
|
|
|
12.4
|
%
|
|
|
15.3
|
%
|
|
|
(2.9
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Breast Aesthetics
|
|
|
|
99.5
|
|
|
|
|
89.6
|
|
|
|
|
9.9
|
|
|
|
|
13.9
|
|
|
|
|
(4.0
|
)
|
|
|
11.0
|
%
|
|
|
15.5
|
%
|
|
|
(4.5
|
)%
|
Facial Aesthetics
|
|
|
|
174.2
|
|
|
|
|
137.2
|
|
|
|
|
37.0
|
|
|
|
|
47.1
|
|
|
|
|
(10.1
|
)
|
|
|
27.0
|
%
|
|
|
34.3
|
%
|
|
|
(7.3
|
)%
|
Core Medical Devices
|
|
|
|
273.7
|
|
|
|
|
226.8
|
|
|
|
|
46.9
|
|
|
|
|
61.0
|
|
|
|
|
(14.1
|
)
|
|
|
20.7
|
%
|
|
|
26.9
|
%
|
|
|
(6.2
|
)%
|
Other (a)
|
|
|
|
8.6
|
|
|
|
|
3.1
|
|
|
|
|
5.5
|
|
|
|
|
5.5
|
|
|
|
|
-
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
Total Medical Devices
|
|
|
|
282.3
|
|
|
|
|
229.9
|
|
|
|
|
52.4
|
|
|
|
|
66.5
|
|
|
|
|
(14.1
|
)
|
|
|
22.8
|
%
|
|
|
28.9
|
%
|
|
|
(6.1
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product net sales
|
|
|
$
|
1,889.0
|
|
|
|
$
|
1,659.6
|
|
|
|
$
|
229.4
|
|
|
|
$
|
284.7
|
|
|
|
$
|
(55.3
|
)
|
|
|
13.8
|
%
|
|
|
17.2
|
%
|
|
|
(3.4
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
|
|
|
|
65.4
|
%
|
|
|
|
63.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
|
|
|
34.6
|
%
|
|
|
|
36.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Product Net Sales (b):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alphagan P, Alphagan, and Combigan
|
|
|
$
|
138.5
|
|
|
|
$
|
124.9
|
|
|
|
$
|
13.6
|
|
|
|
$
|
17.1
|
|
|
|
$
|
(3.5
|
)
|
|
|
10.8
|
%
|
|
|
13.7
|
%
|
|
|
(2.9
|
)%
|
Lumigan Franchise
|
|
|
|
177.3
|
|
|
|
|
172.6
|
|
|
|
|
4.7
|
|
|
|
|
12.4
|
|
|
|
|
(7.7
|
)
|
|
|
2.8
|
%
|
|
|
7.2
|
%
|
|
|
(4.4
|
)%
|
Total Glaucoma Products
|
|
|
|
317.7
|
|
|
|
|
299.8
|
|
|
|
|
17.9
|
|
|
|
|
29.2
|
|
|
|
|
(11.3
|
)
|
|
|
5.9
|
%
|
|
|
9.8
|
%
|
|
|
(3.9
|
)%
|
Restasis
|
|
|
|
309.4
|
|
|
|
|
277.6
|
|
|
|
|
31.8
|
|
|
|
|
33.2
|
|
|
|
|
(1.4
|
)
|
|
|
11.5
|
%
|
|
|
11.9
|
%
|
|
|
(0.4
|
)%
|
Latisse
|
|
|
|
27.4
|
|
|
|
|
23.4
|
|
|
|
|
4.0
|
|
|
|
|
4.5
|
|
|
|
|
(0.5
|
)
|
|
|
17.4
|
%
|
|
|
19.2
|
%
|
|
|
(1.8
|
)%
|
Total Specialty Pharmaceuticals and Core Medical Devices
|
|
|
|
1,880.4
|
|
|
|
|
1,656.5
|
|
|
|
|
223.9
|
|
|
|
|
279.2
|
|
|
|
|
(55.3
|
)
|
|
|
13.5
|
%
|
|
|
16.9
|
%
|
|
|
(3.4
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
$ change in net sales
|
|
|
Percent change in net sales
|
in millions
|
|
|
2014
|
|
|
2013
|
|
|
Total
|
|
|
Performance
|
|
|
Currency
|
|
|
Total
|
|
|
Performance
|
|
|
Currency
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eye Care Pharmaceuticals
|
|
|
$
|
3,257.9
|
|
|
|
$
|
2,890.3
|
|
|
|
$
|
367.6
|
|
|
|
$
|
407.1
|
|
|
|
$
|
(39.5
|
)
|
|
|
12.7
|
%
|
|
|
14.1
|
%
|
|
|
(1.4
|
)%
|
Botox/Neuromodulators
|
|
|
|
2,230.6
|
|
|
|
|
1,982.2
|
|
|
|
|
248.4
|
|
|
|
|
280.6
|
|
|
|
|
(32.2
|
)
|
|
|
12.5
|
%
|
|
|
14.2
|
%
|
|
|
(1.7
|
)%
|
Skin Care and Other
|
|
|
|
523.6
|
|
|
|
|
466.5
|
|
|
|
|
57.1
|
|
|
|
|
58.3
|
|
|
|
|
(1.2
|
)
|
|
|
12.2
|
%
|
|
|
12.5
|
%
|
|
|
(0.3
|
)%
|
Total Specialty Pharmaceuticals
|
|
|
|
6,012.1
|
|
|
|
|
5,339.0
|
|
|
|
|
673.1
|
|
|
|
|
746.0
|
|
|
|
|
(72.9
|
)
|
|
|
12.6
|
%
|
|
|
14.0
|
%
|
|
|
(1.4
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Breast Aesthetics
|
|
|
|
406.7
|
|
|
|
|
377.9
|
|
|
|
|
28.8
|
|
|
|
|
33.8
|
|
|
|
|
(5.0
|
)
|
|
|
7.6
|
%
|
|
|
8.9
|
%
|
|
|
(1.3
|
)%
|
Facial Aesthetics
|
|
|
|
661.8
|
|
|
|
|
477.5
|
|
|
|
|
184.3
|
|
|
|
|
199.4
|
|
|
|
|
(15.1
|
)
|
|
|
38.6
|
%
|
|
|
41.8
|
%
|
|
|
(3.2
|
)%
|
Core Medical Devices
|
|
|
|
1,068.5
|
|
|
|
|
855.4
|
|
|
|
|
213.1
|
|
|
|
|
233.2
|
|
|
|
|
(20.1
|
)
|
|
|
24.9
|
%
|
|
|
27.3
|
%
|
|
|
(2.4
|
)%
|
Other (a)
|
|
|
|
45.5
|
|
|
|
|
3.1
|
|
|
|
|
42.4
|
|
|
|
|
42.4
|
|
|
|
|
-
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
Total Medical Devices
|
|
|
|
1,114.0
|
|
|
|
|
858.5
|
|
|
|
|
255.5
|
|
|
|
|
275.6
|
|
|
|
|
(20.1
|
)
|
|
|
29.8
|
%
|
|
|
32.1
|
%
|
|
|
(2.3
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product net sales
|
|
|
$
|
7,126.1
|
|
|
|
$
|
6,197.5
|
|
|
|
$
|
928.6
|
|
|
|
$
|
1,021.6
|
|
|
|
$
|
(93.0
|
)
|
|
|
15.0
|
%
|
|
|
16.5
|
%
|
|
|
(1.5
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
|
|
|
|
63.4
|
%
|
|
|
|
62.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
|
|
|
36.6
|
%
|
|
|
|
38.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Product Net Sales (b):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alphagan P, Alphagan, and Combigan
|
|
|
$
|
515.4
|
|
|
|
$
|
474.1
|
|
|
|
$
|
41.3
|
|
|
|
$
|
48.8
|
|
|
|
$
|
(7.5
|
)
|
|
|
8.7
|
%
|
|
|
10.3
|
%
|
|
|
(1.6
|
)%
|
Lumigan Franchise
|
|
|
|
662.6
|
|
|
|
|
625.3
|
|
|
|
|
37.3
|
|
|
|
|
42.4
|
|
|
|
|
(5.1
|
)
|
|
|
6.0
|
%
|
|
|
6.8
|
%
|
|
|
(0.8
|
)%
|
Total Glaucoma Products
|
|
|
|
1,186.3
|
|
|
|
|
1,108.5
|
|
|
|
|
77.8
|
|
|
|
|
90.5
|
|
|
|
|
(12.7
|
)
|
|
|
7.0
|
%
|
|
|
8.2
|
%
|
|
|
(1.2
|
)%
|
Restasis
|
|
|
|
1,083.7
|
|
|
|
|
940.0
|
|
|
|
|
143.7
|
|
|
|
|
149.4
|
|
|
|
|
(5.7
|
)
|
|
|
15.3
|
%
|
|
|
15.9
|
%
|
|
|
(0.6
|
)%
|
Latisse
|
|
|
|
98.6
|
|
|
|
|
100.0
|
|
|
|
|
(1.4
|
)
|
|
|
|
(0.4
|
)
|
|
|
|
(1.0
|
)
|
|
|
(1.4
|
)%
|
|
|
(0.4
|
)%
|
|
|
(1.0
|
)%
|
Total Specialty Pharmaceuticals and Core Medical Devices
|
|
|
|
7,080.6
|
|
|
|
|
6,194.4
|
|
|
|
|
886.2
|
|
|
|
|
979.2
|
|
|
|
|
(93.0
|
)
|
|
|
14.3
|
%
|
|
|
15.8
|
%
|
|
|
(1.5
|
)%
|
(a)
|
|
|
Other medical devices product net sales consist of sales made
pursuant to transition services agreements with Apollo Endosurgery,
Inc. related to the sale of the obesity intervention business unit.
|
(b)
|
|
|
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.
|
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