REG - Abbott Laboratories - Abbott 4Q15 Earnings Results <Origin Href="QuoteRef">ABT.N</Origin> - Part 2

Abbott LaboratoriesAnnouncement

01/04/2016 13:45

- Part 2: For the preceding part double click  ID:nRSb3264Na 

1,135                
 Taxes on Earnings from Continuing Operations                                 135          68           203                  
 Net Earnings from Continuing Operations                                      695          237          932                  
 Diluted Earnings per Share from Continuing Operations                        $0.46        $0.16        $0.62                
 
 
Specified items reflect intangible amortization expense of $143 million and
other expenses of $162 million, primarily associated with cost reduction
initiatives and acquisitions. 
 
                                                        4Q14       
                                                        As           Specified    As           % to    
                                                        Reported     Items        Adjusted     Sales   
                                                        (GAAP)                                         
                                                                                                       
 Intangible Amortization                                $163         ($163)       --                   
 Gross Margin                                           2,856        191          $3,047       56.9%   
 R&D                                                    361          (19)         342          6.4%    
 SG&A                                                   1,666        (86)         1,580        29.5%   
 Net loss on extinguishment of debt                     18           (18)         --                   
 Other (Income) Expense, Net                            12           (1)          11                   
 Earnings from Continuing Operations before taxes       804          315          1,119                
 Taxes on Earnings from Continuing Operations           170          6            176                  
 Net Earnings from Continuing Operations                634          309          943                  
 Diluted Earnings per Share from Continuing Operations  $0.41        $0.21        $0.62                
 
 
Specified items reflect intangible amortization expense of $163 million and
other expenses of $152 million, primarily associated with cost reduction
initiatives and deal and other expenses related to acquisitions, as well as
tax expense of $175 million associated with a one-time repatriation of 2014
ex-U.S. earnings, partially offset by favorability as a result of the
resolution of various tax positions and adjustment of tax uncertainties from
prior years. 
 
 Abbott Laboratories and Subsidiaries                                         
 Non-GAAP Reconciliation of Financial Information From Continuing Operations  
 Fiscal Year Ended December 31, 2015 and 2014                                 
 (in millions, except per share data)                                         
 (unaudited)                                                                  
                                                                              
                                                                              12M15      
                                                                              As           Specified    As           % to    
                                                                              Reported     Items        Adjusted     Sales   
                                                                              (GAAP)                                         
                                                                                                                             
 Intangible Amortization                                                      $601         ($601)       --                   
 Gross Margin                                                                 11,057       755          $11,812      57.9%   
 R&D                                                                          1,405        (85)         1,320        6.5%    
 SG&A                                                                         6,785        (272)        6,513        31.9%   
 Other (Income) Expense, Net                                                  (281)        288          7                    
 Earnings from Continuing Operations before taxes                             3,183        824          4,007                
 Taxes on Earnings from Continuing Operations                                 577          172          749                  
 Net Earnings from Continuing Operations                                      2,606        652          3,258                
 Diluted Earnings per Share from Continuing Operations                        $1.72        $0.43        $2.15                
 
 
Specified items reflect intangible amortization expense of $601 million and
other expenses of $510 million, primarily associated with cost reduction
initiatives and acquisitions, partially offset by a gain on the sale of a
portion of Abbott's position in Mylan stock of $207 million and a decrease in
the fair value of contingent consideration related to a business acquisition. 
 
                                                        12M14      
                                                        As           Specified    As           % to    
                                                        Reported     Items        Adjusted     Sales   
                                                        (GAAP)                                         
                                                                                                       
 Intangible Amortization                                $555         ($555)       --                   
 Gross Margin                                           10,474       721          $11,195      55.3%   
 R&D                                                    1,345        (72)         1,273        6.3%    
 SG&A                                                   6,530        (367)        6,163        30.4%   
 Net loss on extinguishment of debt                     18           (18)         --                   
 Other (Income) Expense, Net                            14           (9)          5                    
 Earnings from Continuing Operations before taxes       2,518        1,187        3,705                
 Taxes on Earnings from Continuing Operations           797          (130)        667                  
 Net Earnings from Continuing Operations                1,721        1,317        3,038                
 Diluted Earnings per Share from Continuing Operations  $1.12        $0.86        $1.98                
 
 
Specified items reflect intangible amortization expense of $555 million and
other expenses of $632 million, primarily associated with cost reduction
initiatives and deal and other expenses related to acquisitions, as well as
tax expense of $440 million associated with a one-time repatriation of 2014
ex-U.S. earnings, partially offset by favorability as a result of the
resolution of various tax positions and adjustment of tax uncertainties from
prior years. 
 
RECONCILIATION OF TAX RATE FOR CONTINUING OPERATIONS 
 
A reconciliation of the fourth-quarter tax rates for continuing operations for
2015 and 2014 is shown below: 
 
                            4Q15                                                                                                                                                                                                                                                                                                                    
 ($ in millions)            Pre-Tax                                                                                                                                                                                                                                                                                                                 Taxes on     Tax        
                            Income                                                                                                                                                                                                                                                                                                                  Earnings     Rate       
 As reported (GAAP)         $830                                                                                                                                                                                                                                                                                                                    $135         16.3%      
 Specified items            305                                                                                                                                                                                                                                                                                                                     68                      
 Excluding specified items  $1,135                                                                                                                                                                                                                                                                                                                  $203         17.9%  1)  
                                                                                                                                                                                                                                                                                                                                                                            
                            4Q14                                                                                                                                                                                                                                                                                                                    
 ($ in millions)            Pre-Tax                                                                                                                                                                                                                                                                                                                 Taxes on     Tax        
                            Income                                                                                                                                                                                                                                                                                                                  Earnings     Rate       
 As reported (GAAP)         $804                                                                                                                                                                                                                                                                                                                    $170         21.1%  2)  
 Specified items            315                                                                                                                                                                                                                                                                                                                     6                       
 Excluding specified items  $1,119                                                                                                                                                                                                                                                                                                                  $176         15.7%  1)  
                                                                                                                                                                                                                                                                                                                                                  
 1)                         Fourth-quarter 2014 and 2015 tax rates include the year-to-date impact of U.S. tax legislation passed in Dec. 2014 and 2015, respectively, including the R&D tax credit.                                                                                                                                              
                                                                                                                                                                                                                                                                                                                                                  
 2)                         Reported tax rate on a GAAP basis includes the impact of tax expense of $175 million associated with a one-time repatriation of 2014 ex-U.S. earnings, partially offset by favorability of $133 million as a result of the resolution of various tax positions and adjustment of tax uncertainties from prior years.  
 
 
A reconciliation of the full-year tax rates for continuing operations for 2015
and 2014 is shown below: 
 
                            12M15                                                                                                                                                                                                                                                                                                                   
 ($ in millions)            Pre-Tax                                                                                                                                                                                                                                                                                                                 Taxes on     Tax        
                            Income                                                                                                                                                                                                                                                                                                                  Earnings     Rate       
 As reported (GAAP)         $3,183                                                                                                                                                                                                                                                                                                                  $577         18.1%      
 Specified items            824                                                                                                                                                                                                                                                                                                                     172                     
 Excluding specified items  $4,007                                                                                                                                                                                                                                                                                                                  $749         18.7%  3)  
                                                                                                                                                                                                                                                                                                                                                                            
                            12M14                                                                                                                                                                                                                                                                                                                   
 ($ in millions)            Pre-Tax                                                                                                                                                                                                                                                                                                                 Taxes on     Tax        
                            Income                                                                                                                                                                                                                                                                                                                  Earnings     Rate       
 As reported (GAAP)         $2,518                                                                                                                                                                                                                                                                                                                  $797         31.7%  4)  
 Specified items            1,187                                                                                                                                                                                                                                                                                                                   (130)                   
 Excluding specified items  $3,705                                                                                                                                                                                                                                                                                                                  $667         18.0%  3)  
                                                                                                                                                                                                                                                                                                                                                  
 3)                         Full-year 2014 and 2015 tax rates include the impact of U.S. tax legislation passed in Dec. 2014 and 2015, respectively, including the R&D tax credit.                                                                                                                                                                
                                                                                                                                                                                                                                                                                                                                                  
 4)                         Reported tax rate on a GAAP basis includes the impact of tax expense of $440 million associated with a one-time repatriation of 2014 ex-U.S. earnings, partially offset by favorability of $126 million as a result of the resolution of various tax positions and adjustment of tax uncertainties from prior years.  
 
 
CONTACT: Abbott Financial: Scott Leinenweber, (224) 668-0791, Michael Comilla,
(224) 668-1872, Jeffrey Byrne, (224) 668-8808; or Abbott Media: Scott Stoffel,
(224) 668-5201, Elissa Maurer, (224) 668-3309 
 
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