UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
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☒ |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended September 30, 2018
OR
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☐ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
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Commission File Number
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Exact name of registrant as specified in its charter, principal office and address and telephone number
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State of incorporation or organization
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I.R.S. Employer Identification No.
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001-36867 |
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Allergan plc Clonshaugh Business and Technology Park Coolock, Dublin, D17 E400, Ireland (862) 261-7000 |
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Ireland |
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98-1114402 |
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001-36887 |
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Warner Chilcott Limited Canon’s Court |
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Bermuda |
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98-0496358 |
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22 Victoria Street |
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Hamilton HM 12 |
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Bermuda |
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(441) 295-2244 |
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days:
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Allergan plc |
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YES ☒ |
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NO ☐ |
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Warner Chilcott Limited |
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YES ☒ |
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NO ☐ |
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
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Allergan plc |
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YES ☒ |
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NO ☐ |
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Warner Chilcott Limited |
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YES ☒ |
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NO ☐ |
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):
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Allergan plc |
Large accelerated filer |
☒ |
Accelerated filer |
☐ |
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Non-accelerated filer |
☐ |
Smaller reporting company |
☐ |
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Emerging growth company |
☐ |
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Warner Chilcott Limited |
Large accelerated filer |
☐ |
Accelerated filer |
☐ |
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Non-accelerated filer |
☒ |
Smaller reporting company |
☐ |
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Emerging growth company |
☐ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).
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Allergan plc |
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YES ☐ |
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NO ☒ |
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Warner Chilcott Limited |
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YES ☐ |
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NO ☒ |
Number of shares of Allergan plc’s Ordinary Shares outstanding on October 26, 2018: 337,285,952. There is no trading market for securities of Warner Chilcott Limited, all of which are indirectly wholly owned by Allergan plc.
This Quarterly Report on Form 10-Q is a combined report being filed separately by two different registrants: Allergan plc and Warner Chilcott Limited. Warner Chilcott Limited is an indirect wholly-owned subsidiary of Allergan plc. The information in this Quarterly Report on Form 10-Q is equally applicable to Allergan plc and Warner Chilcott Limited, except where otherwise indicated. Warner Chilcott Limited meets the conditions set forth in General Instruction H(1)(a) and (b) of Form 10-Q and, to the extent applicable, is therefore filing this form with a reduced disclosure format.
FORM 10-Q FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2018
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PAGE |
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3 |
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Item 1. |
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3 |
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Consolidated Balance Sheets of Allergan plc as of September 30, 2018 and December 31, 2017 |
3 |
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4 |
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5 |
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6 |
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7 |
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8 |
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9 |
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10 |
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11 |
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Item 2. |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
69 |
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Item 3. |
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91 |
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Item 4. |
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93 |
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94 |
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Item 1. |
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94 |
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Item 1A. |
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94 |
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Item 2. |
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94 |
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Item 6. |
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94 |
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96 |
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2
ALLERGAN PLC
(Unaudited; in millions, except par value)
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September 30, |
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December 31, |
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2018 |
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2017 |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
1,187.9 |
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$ |
1,817.2 |
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Marketable securities |
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22.0 |
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4,632.1 |
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Accounts receivable, net |
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2,826.9 |
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2,899.0 |
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Inventories |
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894.6 |
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904.5 |
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Current assets held for sale |
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7.3 |
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- |
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Prepaid expenses and other current assets |
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801.5 |
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1,123.9 |
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Total current assets |
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5,740.2 |
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11,376.7 |
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Property, plant and equipment, net |
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1,756.6 |
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1,785.4 |
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Investments and other assets |
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302.8 |
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267.9 |
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Non current assets held for sale |
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169.7 |
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81.6 |
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Deferred tax assets |
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989.4 |
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319.1 |
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Product rights and other intangibles |
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48,127.4 |
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54,648.3 |
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Goodwill |
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49,456.4 |
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49,862.9 |
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Total assets |
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$ |
106,542.5 |
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$ |
118,341.9 |
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LIABILITIES AND EQUITY |
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Current liabilities: |
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Accounts payable and accrued expenses |
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$ |
4,695.6 |
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$ |
5,541.4 |
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Income taxes payable |
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184.7 |
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74.9 |
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Current portion of long-term debt and capital leases |
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1,351.6 |
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4,231.8 |
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Total current liabilities |
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6,231.9 |
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9,848.1 |
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Long-term debt and capital leases |
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22,231.8 |
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25,843.5 |
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Other long-term liabilities |
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752.1 |
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886.9 |
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Other taxes payable |
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1,580.5 |
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1,573.9 |
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Deferred tax liabilities |
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5,225.3 |
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6,352.4 |
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Total liabilities |
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36,021.6 |
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44,504.8 |
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Commitments and contingencies (Refer to Note 19) |
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Equity: |
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Preferred shares, $0.0001 par value per share, zero and 5.1 million shares authorized, issued and outstanding, respectively |
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$ |
- |
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$ |
4,929.7 |
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Ordinary shares; $0.0001 par value per share; 1,000.0 million shares authorized, 337.2 million and 330.2 million shares issued and outstanding, respectively |
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- |
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- |
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Additional paid-in capital |
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57,203.0 |
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54,013.5 |
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Retained earnings |
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11,800.6 |
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12,957.2 |
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Accumulated other comprehensive income |
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1,504.2 |
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1,920.7 |
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Total shareholders’ equity |
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70,507.8 |
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73,821.1 |
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Noncontrolling interest |
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13.1 |
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16.0 |
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Total equity |
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70,520.9 |
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73,837.1 |
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Total liabilities and equity |
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$ |
106,542.5 |
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$ |
118,341.9 |
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See accompanying Notes to the Consolidated Financial Statements.
3
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited; in millions, except per share amounts)
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2018 |
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2017 |
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2018 |
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2017 |
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Net revenues |
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$ |
3,911.4 |
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$ |
4,034.3 |
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$ |
11,707.7 |
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$ |
11,614.6 |
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Operating expenses: |
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Cost of sales (excludes amortization and impairment of acquired intangibles including product rights) |
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596.8 |
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586.5 |
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1,601.4 |
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1,587.1 |
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Research and development |
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424.2 |
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442.6 |
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1,588.1 |
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1,691.9 |
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Selling and marketing |
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755.6 |
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832.8 |
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2,409.0 |
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2,637.1 |
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General and administrative |
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289.2 |
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336.9 |
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919.2 |
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1,112.8 |
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Amortization |
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1,588.5 |
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1,781.0 |
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4,983.2 |
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5,274.9 |
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In-process research and development impairments |
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- |
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202.0 |
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798.0 |
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1,245.3 |
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Asset sales and impairments, net |
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(0.4 |
) |
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3,874.8 |
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272.3 |
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3,896.2 |
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Total operating expenses |
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3,653.9 |
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8,056.6 |
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12,571.2 |
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17,445.3 |
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Operating income / (loss) |
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257.5 |
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(4,022.3 |
) |
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(863.5 |
) |
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(5,830.7 |
) |
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Interest income |
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10.0 |
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11.1 |
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33.6 |
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53.0 |
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Interest (expense) |
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(220.4 |
) |
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(265.2 |
) |
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(701.0 |
) |
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(832.3 |
) |
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Other income / (expense), net |
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130.0 |
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(1,310.3 |
) |
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266.6 |
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(3,366.6 |
) |
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Total other (expense), net |
|
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(80.4 |
) |
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(1,564.4 |
) |
|
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(400.8 |
) |
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(4,145.9 |
) |
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Income / (loss) before income taxes and noncontrolling interest |
|
|
177.1 |
|
|
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(5,586.7 |
) |
|
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(1,264.3 |
) |
|
|
(9,976.6 |
) |
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Provision / (benefit) for income taxes |
|
|
213.4 |
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|
|
(1,638.8 |
) |
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(474.0 |
) |
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(2,752.1 |
) |
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Net (loss) from continuing operations, net of tax |
|
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(36.3 |
) |
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(3,947.9 |
) |
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(790.3 |
) |
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(7,224.5 |
) |
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(Loss) from discontinued operations, net of tax |
|
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- |
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(6.1 |
) |
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- |
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(17.6 |
) |
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Net (loss) |
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(36.3 |
) |
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(3,954.0 |
) |
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(790.3 |
) |
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(7,242.1 |
) |
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(Income) attributable to noncontrolling interest |
|
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(1.6 |
) |
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(1.7 |
) |
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(6.2 |
) |
|
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(4.7 |
) |
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Net (loss) attributable to shareholders |
|
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(37.9 |
) |
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(3,955.7 |
) |
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(796.5 |
) |
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(7,246.8 |
) |
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Dividends on preferred shares |
|
|
- |
|
|
|
69.6 |
|
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|
46.4 |
|
|
|
208.8 |
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Net (loss) attributable to ordinary shareholders |
|
$ |
(37.9 |
) |
|
$ |
(4,025.3 |
) |
|
$ |
(842.9 |
) |
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$ |
(7,455.6 |
) |
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(Loss) per share attributable to ordinary shareholders - basic: |
|
|
|
|
|
|
|
|
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|
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|
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Continuing operations |
|
$ |
(0.11 |
) |
|
$ |
(12.05 |
) |
|
$ |
(2.50 |
) |
|
$ |
(22.23 |
) |
|
Discontinued operations |
|
|
- |
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|
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(0.02 |
) |
|
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- |
|
|
|
(0.05 |
) |
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Net (loss) per share - basic |
|
$ |
(0.11 |
) |
|
$ |
(12.07 |
) |
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$ |
(2.50 |
) |
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$ |
(22.28 |
) |
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(Loss) per share attributable to ordinary shareholders - diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Continuing operations |
|
$ |
(0.11 |
) |
|
$ |
(12.05 |
) |
|
$ |
(2.50 |
) |
|
$ |
(22.23 |
) |
|
Discontinued operations |
|
|
- |
|
|
|
(0.02 |
) |
|
|
- |
|
|
|
(0.05 |
) |
|
Net (loss) per share - diluted |
|
$ |
(0.11 |
) |
|
$ |
(12.07 |
) |
|
$ |
(2.50 |
) |
|
$ |
(22.28 |
) |
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|
|
|
|
|
|
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|
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|
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Dividends per ordinary share |
|
$ |
0.72 |
|
|
$ |
0.70 |
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$ |
2.16 |
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$ |
2.10 |
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Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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Basic |
|
|
339.0 |
|
|
|
333.5 |
|
|
|
337.6 |
|
|
|
334.6 |
|
|
Diluted |
|
|
339.0 |
|
|
|
333.5 |
|
|
|
337.6 |
|
|
|
334.6 |
|
See accompanying Notes to the Consolidated Financial Statements.
4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)
(Unaudited; in millions)
|
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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||||||||||
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2018 |
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2017 |
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2018 |
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2017 |
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Net (loss) |
|
$ |
(36.3 |
) |
|
$ |
(3,954.0 |
) |
|
$ |
(790.3 |
) |
|
$ |
(7,242.1 |
) |
|
Other comprehensive (loss) / income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Foreign currency translation (losses) / gains |
|
|
(87.3 |
) |
|
|
280.8 |
|
|
|
(352.1 |
) |
|
|
1,141.2 |
|
|
Net impact of other-than-temporary loss on investment in Teva securities |
|
|
- |
|
|
|
(207.7 |
) |
|
|
- |
|
|
|
1,599.4 |
|
|
Unrealized (losses) / gains, net of tax |
|
|
(1.4 |
) |
|
|
13.1 |
|
|
|
(1.4 |
) |
|
|
9.0 |
|
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Impact of ASU No. 2016-01, net of tax |
|
|
- |
|
|
|
- |
|
|
|
(63.0 |
) |
|
|
- |
|
|
Total other comprehensive (loss) / income, net of tax |
|
|
(88.7 |
) |
|
|
86.2 |
|
|
|
(416.5 |
) |
|
|
2,749.6 |
|
|
Comprehensive (loss) |
|
|
(125.0 |
) |
|
|
(3,867.8 |
) |
|
|
(1,206.8 |
) |
|
|
(4,492.5 |
) |
|
Comprehensive (income) attributable to noncontrolling interest |
|
|
(1.6 |
) |
|
|
(1.7 |
) |
|
|
(6.2 |
) |
|
|
(4.7 |
) |
|
Comprehensive (loss) attributable to ordinary shareholders |
|
$ |
(126.6 |
) |
|
$ |
(3,869.5 |
) |
|
$ |
(1,213.0 |
) |
|
$ |
(4,497.2 |
) |
See accompanying Notes to the Consolidated Financial Statements.
5
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; in millions)
|
|
|
Nine Months Ended September 30, |
|
|||||
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|
|
2018 |
|
|
2017 |
|
||
|
Cash Flows From Operating Activities: |
|
|
|
|
|
|
|
|
|
Net (loss) |
|
$ |
(790.3 |
) |
|
$ |
(7,242.1 |
) |
|
Reconciliation to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
149.7 |
|
|
|
123.2 |
|
|
Amortization |
|
|
4,983.2 |
|
|
|
5,274.9 |
|
|
Provision for inventory reserve |
|
|
74.9 |
|
|
|
77.3 |
|
|
Share-based compensation |
|
|
185.2 |
|
|
|
220.8 |
|
|
Deferred income tax benefit |
|
|
(1,362.8 |
) |
|
|
(3,205.3 |
) |
|
In-process research and development impairments |
|
|
798.0 |
|
|
|
1,245.3 |
|
|
Loss on asset sales and impairments, net |
|
|
272.3 |
|
|
|
3,896.2 |
|
|
Net income impact of other-than-temporary loss on investment in Teva securities |
|
|
- |
|
|
|
3,273.5 |
|
|
Gain on sale of Teva securities, net |
|
|
(60.9 |
) |
|
|
- |
|
|
Amortization of inventory step-up |
|
|
- |
|
|
|
126.2 |
|
|
Gain on sale of business |
|
|
(182.6 |
) |
|
|
- |
|
|
Non-cash extinguishment of debt |
|
|
17.4 |
|
|
|
(8.2 |
) |
|
Cash (discount) / charge related to extinguishment of debt |
|
|
(18.2 |
) |
|
|
170.5 |
|
|
Amortization of deferred financing costs |
|
|
17.4 |
|
|
|
19.6 |
|
|
Contingent consideration adjustments, including accretion |
|
|
(113.1 |
) |
|
|
(51.6 |
) |
|
Other, net |
|
|
0.5 |
|
|
|
(18.2 |
) |
|
Changes in assets and liabilities (net of effects of acquisitions): |
|
|
|
|
|
|
|
|
|
Decrease / (increase) in accounts receivable, net |
|
|
17.0 |
|
|
|
(138.5 |
) |
|
Decrease / (increase) in inventories |
|
|
(136.2 |
) |
|
|
(107.7 |
) |
|
Decrease / (increase) in prepaid expenses and other current assets |
|
|
(5.4 |
) |
|
|
45.8 |
|
|
Increase / (decrease) in accounts payable and accrued expenses |
|
|
(46.1 |
) |
|
|
(356.3 |
) |
|
Increase / (decrease) in income and other taxes payable |
|
|
415.5 |
|
|
|
646.1 |
|
|
Increase / (decrease) in other assets and liabilities |
|
|
(74.0 |
) |
|
|
4.0 |
|
|
Net cash provided by operating activities |
|
|
4,141.5 |
|
|
|
3,995.5 |
|
|
Cash Flows From Investing Activities: |
|
|
|
|
|
|
|
|
|
Additions to property, plant and equipment |
|
|
(165.1 |
) |
|
|
(234.0 |
) |
|
Additions to product rights and other intangibles |
|
|
- |
|
|
|
(604.3 |
) |
|
Additions to investments |
|
|
(1,456.4 |
) |
|
|
(8,433.8 |
) |
|
Proceeds from sale of investments and other assets |
|
|
6,201.3 |
|
|
|
14,474.4 |
|
|
Payments to settle Teva related matters |
|
|
(466.0 |
) |
|
|
- |
|
|
Proceeds from sales of property, plant and equipment |
|
|
24.6 |
|
|
|
5.8 |
|
|
Acquisitions of businesses, net of cash acquired |
|
|
- |
|
|
|
(5,290.4 |
) |
|
Net cash provided by / (used in) investing activities |
|
|
4,138.4 |
|
|
|
(82.3 |
) |
|
Cash Flows From Financing Activities: |
|
|
|
|
|
|
|
|
|
Proceeds from borrowings of long-term indebtedness, including credit facility |
|
|
717.2 |
|
|
|
3,025.0 |
|
|
Proceeds from forward sale of Teva securities |
|
|
465.5 |
|
|
|
- |
|
|
Debt issuance and other financing costs |
|
|
- |
|
|
|
(17.5 |
) |
|
Payments on debt, including capital lease obligations and credit facility |
|
|
(7,115.9 |
) |
|
|
(5,579.2 |
) |
|
Cash charge related to extinguishment of debt |
|
|
- |
|
|
|
(170.5 |
) |
|
Proceeds from stock plans |
|
|
98.2 |
|
|
|
167.2 |
|
|
Payments of contingent consideration and other financing |
|
|
(21.7 |
) |
|
|
(515.2 |
) |
|
Payments to settle Teva related matters |
|
|
(234.0 |
) |
|
|
- |
|
|
Repurchase of ordinary shares |
|
|
(2,023.5 |
) |
|
|
(36.4 |
) |
|
Dividends paid |
|
|
(808.1 |
) |
|
|
(917.0 |
) |
|
Net cash (used in) financing activities |
|
|
(8,922.3 |
) |
|
|
(4,043.6 |
) |
|
Effect of currency exchange rate changes on cash and cash equivalents |
|
|
13.1 |
|
|
|
19.1 |
|
|
Net (decrease) in cash and cash equivalents |
|
|
(629.3 |
) |
|
|
(111.3 |
) |
|
Cash and cash equivalents at beginning of period |
|
|
1,817.2 |
|
|
|
1,724.0 |
|
|
Cash and cash equivalents at end of period |
|
$ |
1,187.9 |
|
|
$ |
1,612.7 |
|
|
Supplemental Disclosures of Cash Flow Information |
|
|
|
|
|
|
|
|
|
Cash paid during the year for: |
|
|
|
|
|
|
|
|
|
Income taxes other, net of refunds |
|
$ |
510.1 |
|
|
$ |
(173.6 |
) |
|
Interest |
|
$ |
817.6 |
|
|
$ |
988.8 |
|
|
Schedule of Non-Cash Investing and Financing Activities: |
|
|
|
|
|
|
|
|
|
Conversion of mandatory convertible preferred shares |
|
$ |
4,929.7 |
|
|
$ |
- |
|
|
Settlement of Teva Shares |
|
$ |
465.5 |
|
|
$ |
- |
|
|
Settlement of secured financing |
|
$ |
(465.5 |
) |
|
$ |
- |
|
|
Non-cash equity issuance for the acquisition of Zeltiq net assets |
|
$ |
- |
|
|
$ |
8.5 |
|
|
Deferred consideration for the acquisition of Zeltiq |
|
$ |
- |
|
|
$ |
13.5 |
|
|
Dividends accrued |
|
$ |
1.4 |
|
|
$ |
24.6 |
|
See accompanying Notes to the Consolidated Financial Statements.
6
(Unaudited; in millions)
|
|
|
September 30, |
|
|
December 31, |
|
||
|
|
|
2018 |
|
|
2017 |
|
||
|
ASSETS |
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
1,185.9 |
|
|
$ |
1,816.3 |
|
|
Marketable securities |
|
|
22.0 |
|
|
|
4,632.1 |
|
|
Accounts receivable, net |
|
|
2,826.7 |
|
|
|
2,899.0 |
|
|
Receivables from Parents |
|
|
795.7 |
|
|
|
5,797.4 |
|
|
Inventories |
|
|
894.6 |
|
|
|
904.5 |
|
|
Current assets held for sale |
|
|
7.3 |
|
|
|
|
|
|
Prepaid expenses and other current assets |
|
|
800.6 |
|
|
|
1,123.0 |
|
|
Total current assets |
|
|
6,532.8 |
|
|
|
17,172.3 |
|
|
Property, plant and equipment, net |
|
|
1,756.6 |
|
|
|
1,785.4 |
|
|
Investments and other assets |
|
|
302.8 |
|
|
|
267.9 |
|
|
Non current receivables from Parents |
|
|
9,046.8 |
|
|
|
3,964.0 |
|
|
Non current assets held for sale |
|
|
169.7 |
|
|
|
81.6 |
|
|
Deferred tax assets |
|
|
989.4 |
|
|
|
316.0 |
|
|
Product rights and other intangibles |
|
|
48,127.4 |
|
|
|
54,648.3 |
|
|
Goodwill |
|
|
49,456.4 |
|
|
|
49,862.9 |
|
|
Total assets |
|
$ |
116,381.9 |
|
|
$ |
128,098.4 |
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses |
|
$ |
4,693.2 |
|
|
$ |
5,515.6 |
|
|
Payables to Parents |
|
|
2,430.2 |
|
|
|
2,340.6 |
|
|
Income taxes payable |
|
|
185.6 |
|
|
|
74.9 |
|
|
Current portion of long-term debt and capital leases |
|
|
1,351.6 |
|
|
|
4,231.8 |
|
|
Total current liabilities |
|
|
8,660.6 |
|
|
|
12,162.9 |
|
|
Long-term debt and capital leases |
|
|
22,231.8 |
|
|
|
25,843.5 |
|
|
Other long-term liabilities |
|
|
752.1 |
|
|
|
886.9 |
|
|
Other taxes payable |
|
|
1,575.1 |
|
|
|
1,573.5 |
|
|
Deferred tax liabilities |
|
|
5,225.4 |
|
|
|
6,349.4 |
|
|
Total liabilities |
|
|
38,445.0 |
|
|
|
46,816.2 |
|
|
Commitments and contingencies (Refer to Note 19) |
|
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
|
|
|
Members' capital |
|
|
72,935.1 |
|
|
|
72,935.1 |
|
|
Retained earnings |
|
|
3,484.5 |
|
|
|
6,410.4 |
|
|
Accumulated other comprehensive income |
|
|
1,504.2 |
|
|
|
1,920.7 |
|
|
Total members’ equity |
|
|
77,923.8 |
|
|
|
81,266.2 |
|
|
Noncontrolling interest |
|
|
13.1 |
|
|
|
16.0 |
|
|
Total equity |
|
|
77,936.9 |
|
|
|
81,282.2 |
|
|
Total liabilities and equity |
|
$ |
116,381.9 |
|
|
$ |
128,098.4 |
|
See accompanying Notes to the Consolidated Financial Statements.
7
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited; in millions)
|
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
|
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
||||
|
Net revenues |
|
$ |
3,911.4 |
|
|
$ |
4,034.3 |
|
|
$ |
11,707.7 |
|
|
$ |
11,614.6 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales (excludes amortization and impairment of acquired intangibles including product rights) |
|
|
596.8 |
|
|
|
586.5 |
|
|
|
1,601.4 |
|
|
|
1,587.1 |
|
|
Research and development |
|
|
424.2 |
|
|
|
442.6 |
|
|
|
1,588.1 |
|
|
|
1,691.9 |
|
|
Selling and marketing |
|
|
755.6 |
|
|
|
832.8 |
|
|
|
2,409.0 |
|
|
|
2,637.1 |
|
|
General and administrative |
|
|
272.4 |
|
|
|
277.2 |
|
|
|
866.0 |
|
|
|
1,039.2 |
|
|
Amortization |
|
|
1,588.5 |
|
|
|
1,781.0 |
|
|
|
4,983.2 |
|
|
|
5,274.9 |
|
|
In-process research and development impairments |
|
|
- |
|
|
|
202.0 |
|
|
|
798.0 |
|
|
|
1,245.3 |
|
|
Asset sales and impairments, net |
|
|
(0.4 |
) |
|
|
3,874.8 |
|
|
|
272.3 |
|
|
|
3,896.2 |
|
|
Total operating expenses |
|
|
3,637.1 |
|
|
|
7,996.9 |
|
|
|
12,518.0 |
|
|
|
17,371.7 |
|
|
Operating income / (loss) |
|
|
||||||||||||||