Abbott Laboratories 2015 Annual Report Download - page 58

ABBOTT 2015 ANNUAL REPORT
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE17—QUARTERLY RESULTS (UNAUDITED)
(inmillions except per share data) 2015 2014
First Quarter
Continuing Operations:
Net Sales $4,897 $4,755
Gross Profit 2,660 2,354
Earnings from Continuing Operations 529 224
Basic Earnings per Common Share 0.35 0.15
Diluted Earnings per Common Share 0.35 0.14
Net Earnings 2,292 375
Basic Earnings Per Common Share (a) 1.52 0.24
Diluted Earnings Per Common Share (a) 1.51 0.24
Market Price Per Share—High 47.88 40.49
Market Price Per Share—Low 43.36 35.65
Second Quarter
Continuing Operations:
Net Sales $5,170 $5,057
Gross Profit 2,801 2,636
Earnings from Continuing Operations 786 425
Basic Earnings per Common Share 0.52 0.28
Diluted Earnings per Common Share 0.52 0.28
Net Earnings 784 466
Basic Earnings Per Common Share (a) 0.52 0.30
Diluted Earnings Per Common Share (a) 0.52 0.30
Market Price Per Share—High 50.47 41.30
Market Price Per Share—Low 45.55 36.65
Third Quarter
Continuing Operations:
Net Sales $5,150 $5,079
Gross Profit 2,757 2,628
Earnings from Continuing Operations 596 438
Basic Earnings per Common Share 0.40 0.29
Diluted Earnings per Common Share 0.39 0.29
Net Earnings 580 538
Basic Earnings Per Common Share (a) 0.39 0.36
Diluted Earnings Per Common Share (a) 0.38 0.36
Market Price Per Share—High 51.74 44.20
Market Price Per Share—Low 39.00 40.92
Fourth Quarter
Continuing Operations:
Net Sales $5,188 $5,356
Gross Profit 2,839 2,856
Earnings from Continuing Operations 695 634
Basic Earnings per Common Share 0.46 0.42
Diluted Earnings per Common Share 0.46 0.41
Net Earnings 767 905
Basic Earnings Per Common Share (a) 0.51 0.59
Diluted Earnings Per Common Share (a) 0.51 0.59
Market Price Per Share—High 46.38 46.50
Market Price Per Share—Low 39.28 39.28
(a) The sum of the four quarters of earnings per share for 2015 and 2014 may not add to the full
year earnings per share amount due to rounding and/or the use of quarter-to-date weighted
average shares to calculate the earnings per share amount in each respective quarter.
(inmillions) 2015 2014 2013
Total Reportable Segment Assets $÷9,777 $10,172 $÷9,986
Cash and investments 10,166 4,689 8,217
Non-reportable segments 1,267 1,211 1,153
Goodwill and intangible assets(d) 15,200 16,265 15,507
All other (d) 4,837 8,870 8,074
Total Assets $41,247 $41,207 $42,937
(d) Goodwill and intangible assets related to developed markets established pharmaceuticals
and animal health are included in the Goodwill and intangible assets line in 2013 and All
other line in 2014.
(inmillions)
Net Sales to
External Customers (e)
2015 2014 2013
United States $÷6,270 $÷6,123 $÷6,208
China 1,796 1,321 1,083
India 1,053 1,009 922
Germany 1,004 978 963
Japan 895 968 1,042
The Netherlands 855 788 960
Switzerland 784 707 792
Russia 483 536 525
United Kingdom 430 447 395
Canada 428 462 493
Colombia 388 283 205
Italy 383 436 457
Brazil 381 508 470
France 375 488 480
All Other Countries 4,880 5,193 4,662
Consolidated $20,405 $20,247 $19,657
(e) Sales by country are based on the country that sold the product.
Long-lived assets on a geographic basis primarily include property,
plant and equipment. It excludes goodwill, intangible assets, deferred
tax assets, and financial instruments, which were previously included
in the balances reported for long-term assets in prior years.
At December 31, 2015 and 2014, Long-lived assets totaled $6.4bil-
lion and $6.8 billion, respectively, and in the United States such
assets totaled $3.1 billion in both years. Long-lived asset balances
associated with other countries were not material on an individ-
ual country basis in either of the two years.
NOTE16—SUBSEQUENT EVENT
On January 30, 2016, Abbott entered into a definitive agreement
toacquire Alere, Inc. (Alere). With annual sales of approximately
$2.5billion, Alere is a global leader in point of care diagnostics.
The acquisition, which is expected to significantly advance
Abbott’s global diagnostics presence and leadership, is subject to
the approval ofAlere shareholders and the satisfaction of custom-
ary closing conditions, including applicable regulatory approvals.
Under the terms of the agreement, Abbott will pay $56 per com-
mon share ata total expected equity value of $5.8billion. Alere’s
net debt, currently $2.6billion, will be assumed or refinanced by
Abbott. InFebruary 2016, Abbott obtained a commitment for a
364-day senior unsecured bridge term loan facility for an amount
not to exceed $9billion in conjunction with its pending acquisi-
tion of Alere. While Abbott plans to use cash on hand at the time
of the acquisition from anticipated long-term borrowings to
acquire Alere, the bridge facility will provide back-up financing.