AbbVie 2014 Annual Report Download - page 37

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ITEM 6. SELECTED FINANCIAL DATA
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The following table sets forth AbbVie’s selected financial information derived from its (i) audited
consolidated financial statements as of and for the years ended December 31, 2014 and 2013; and
(ii) audited combined financial statements as of and for the years ended December 31, 2012, 2011 and
2010. The historical financial statements for periods prior to January 1, 2013 were prepared on a stand-
alone basis and were derived from Abbott’s consolidated financial statements and accounting records as if
the former research-based pharmaceutical business of Abbott had been part of AbbVie for all periods
presented. Accordingly, AbbVie’s financial statements for periods prior to January 1, 2013 are presented on
a combined basis and reflect AbbVie’s financial position, results of operations and cash flows as its business
was operated as part of Abbott prior to the separation, in conformity with generally accepted accounting
principles (GAAP) in the United States. The historical financial statements for periods prior to January 1,
2013 also reflected an allocation of expenses related to certain Abbott corporate functions, including senior
management, legal, human resources, finance, information technology and quality assurance. These
expenses were allocated to AbbVie based on direct usage or benefit where identifiable, with the remainder
allocated on a pro rata basis of revenues, headcount, square footage, number of transactions or other
measures. AbbVie considers the expense allocation methodology and results to be reasonable. However, the
allocations may not be indicative of the actual expenses that would have been incurred had AbbVie
operated as an independent, stand-alone, publicly-traded company for the periods presented. Accordingly,
the historical financial information presented for periods prior to January 1, 2013 may not be indicative of
the results of operations or financial position that would have been achieved if AbbVie had been an
independent, stand-alone, publicly-traded company during the periods shown or of AbbVie’s performance
for periods subsequent to December 31, 2012. Refer to ‘‘Separation from Abbott Laboratories and Basis of
Historical Presentation’’ and ‘‘Transition from Abbott and Cost to Operate as an Independent Company’’
included under Item 7, ‘‘Management’s Discussion and Analysis of Financial Condition and Results of
Operations’’ for additional information.
The selected financial information should be read in conjunction with the financial statements and
accompanying notes included under Item 8, ‘‘Financial Statements and Supplementary Data’’ and Item 7,
‘‘Management’s Discussion and Analysis of Financial Condition and Results of Operations.’’
as of and for the years ended December 31 (in millions, except
per share data) 2014 2013 2012 2011 2010
Statement of earnings data
Net sales $19,960 $18,790 $18,380 $17,444 $15,638
Net earnings(a) $ 1,774 $ 4,128 $ 5,275 $ 3,433 $ 4,178
Basic earnings per share(a) $ 1.11 $ 2.58 $ 3.35 $ 2.18 $ 2.65
Diluted earnings per share(a) $ 1.10 $ 2.56 $ 3.35 $ 2.18 $ 2.65
Cash dividends declared per share $ 1.75 $ 2.00(b) n/a n/a n/a
Weighted-average basic shares outstanding(c) 1,595 1,589 1,577 1,577 1,577
Weighted-average diluted shares outstanding(c) 1,610 1,604 1,577 1,577 1,577
Balance sheet data
Total assets $27,547 $29,198 $27,008 $19,521 $21,135
Long-term debt and lease obligations(d) $14,586 $14,310 $14,652 $ 48 $ 52
(a) Results for the years ended December 31, 2014 and 2013 included higher expenses associated with
operating as an independent, stand-alone publicly traded company than the historically derived
financial statements. The increases include the impact of interest expense on debt issued in November
2012, a higher tax rate and other full year incremental costs of operating as an independent company.
In addition, results for the year ended December 31, 2014 include after-tax transaction and financing-
related costs totaling $1.8 billion, or $1.12 per share, incurred in connection with the terminated
proposed combination with Shire plc (Shire), a $750 million after-tax charge related to a research and
2014 Form 10-K 31