Abbott Laboratories 2012 Annual Report Download - page 47

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Abbott 2012 Annual Report
Notes to Consolidated Financial Statements
Note 13 — Quarterly Results (Unaudited)
(dollars in millions except per share data) 2012 2011 2010
First Quarter
Net Sales $9,456.6 $9,040.9 $7,698.4
Gross Profit 5,731.7 5,181.9 4,363.2
Net Earnings 1,242.1 863.8 1,003.0
Basic Earnings Per Common Share (a) .79 .56 .65
Diluted Earnings Per Common Share (a) .78 .55 .64
Market Price Per Share-High 61.49 49.45 56.79
Market Price Per Share-Low 53.96 45.07 52.21
Second Quarter
Net Sales $9,807.1 $9,616.3 $8,826.0
Gross Profit 6,169.8 5,745.8 5,282.1
Net Earnings 1,724.6 1,942.8 1,291.7
Basic Earnings Per Common Share (a) 1.09 1.24 .83
Diluted Earnings Per Common Share (a) 1.08 1.23 .83
Market Price Per Share-High 64.47 54.24 53.25
Market Price Per Share-Low 59.04 49.05 45.26
Third Quarter
Net Sales $9,773.3 $9,816.7 $8,674.5
Gross Profit 6,075.2 5,843.4 4,933.4
Net Earnings 1,942.8 303.2 890.7
Basic Earnings Per Common Share (a) 1.22 .19 .58
Diluted Earnings Per Common Share (a) 1.21 .19 .57
Market Price Per Share-High 70.41 53.60 52.86
Market Price Per Share-Low 63.51 46.29 44.59
Fourth Quarter
Net Sales $10,836.9 $10,377.4 $9,967.8
Gross Profit 6,777.5 6,539.6 5,922.8
Net Earnings 1,053.4 1,618.7 1,440.8
Basic Earnings Per Common Share (a) .66 1.03 .93
Diluted Earnings Per Common Share (a) .66 1.02 .92
Market Price Per Share-High 72.47 56.44 53.75
Market Price Per Share-Low 62.62 48.96 46.03
(a) The sum of the quarters’ basic earnings per share for 2011 and 2010 and diluted earnings
per share for 2012 and 2011 do not add to the full year earnings per share amounts due to
rounding.
An additional $110 million, $25 million and $13 million were recorded
in 2012, 2011 and 2010, respectively, relating to these restructurings,
primarily for accelerated depreciation.
In 2012 and 2010, Abbott management approved restructuring plans
primarily related to the acquisition of Solvay’s pharmaceuticals busi-
ness. These plans streamline operations, improve efficiencies and
reduce costs in certain Solvay sites and functions as well as in certain
Abbott and Solvay commercial organizations in various countries.
In 2012, Abbott recorded a charge of approximately $150 million for
employee severance and contractual obligations, primarily related to
the exit from a research and development facility. Approximately
$142 million is recorded as Research and development and $8 million
as Selling, general and administrative. In 2010, Abbott recorded
charges to Cost of products sold, Research and development and
Selling, general and administrative of approximately $99 million,
$152 million and $272 million, respectively. The following summarizes
the activity for these restructurings:
(dollars in millions)
2010 restructuring charge $523
Payments, impairments and other adjustments (113)
Accrued balance at December 31, 2010 410
Payments and other adjustments (302)
Accrued balance at December 31, 2011 108
Restructuring charges 150
Payments and other adjustments (143)
Accrued balance at December 31, 2012 $115
An additional $38 million, $102 million and $12 million were recorded
in 2012, 2011 and 2010, respectively, relating to these restructurings,
primarily for additional employee severance and accelerated
depreciation.
In 2011 and 2008, Abbott management approved plans to streamline
global manufacturing operations, reduce overall costs, and improve
efficiencies in Abbott’s core diagnostic business. In 2011, a charge
of $28 million was recorded in Cost of products sold. The following
summarizes the activity for these restructurings:
(dollars in millions)
Accrued balance at January 1, 2010 $98
Payments and other adjustments (10)
Accrued balance at December 31, 2010 88
2011 restructuring charge 28
Payments and other adjustments (37)
Accrued balance at December 31, 2011 79
Payments and other adjustments (23)
Accrued balance at December 31, 2012 $56
In addition, charges of approximately $16 million, $42 million and $60
million were recorded in 2012, 2011 and 2010, primarily for acceler-
ated depreciation and product transfer costs.