Operating Results Attributable to Stockholders from Continuing Operations
For the quarter ended
-
Allergan reported$1.37 diluted earnings per share attributable to stockholders compared to$1.17 diluted earnings per share attributable to stockholders for the second quarter of 2013. -
Allergan reported$1.51 non-GAAP diluted earnings per share attributable to stockholders compared to$1.22 non-GAAP diluted earnings per share attributable to stockholders for the second quarter of 2013, a 23.8 percent increase.
Product Sales
For the quarter ended
-
Allergan reported$1,827.3 million total product net sales. Total product net sales increased 15.9 percent compared to total product net sales in the second quarter of 2013.- Total specialty pharmaceuticals net sales increased 13.2 percent, or 13.7 percent on a constant currency basis, compared to total specialty pharmaceuticals net sales in the second quarter of 2013.
- Total core medical devices net sales increased 25.8 percent, or 26.1 percent on a constant currency basis, compared to total core medical devices net sales in the second quarter of 2013.
- Total specialty pharmaceuticals and core medical devices net sales, which exclude sales from the transition services agreements related to the sale of the obesity intervention business unit, increased 15.1 percent, or 15.5 percent on a constant currency basis, compared to total specialty pharmaceuticals and core medical devices net sales in the second quarter of 2013.
"With continuing strong momentum,
Product and Pipeline Update
During the second quarter of 2014:
-
On
May 1, 2014 ,Allergan announced that BOTOX® (Botulinum Toxin Type A) received a positive opinion from the Irish Medicines Board serving as reference member state in the mutual recognition procedure (MRP) for the treatment of focal spasticity of the ankle in adult post stroke patients. To date this has led to Marketing Authorisations in 10 of the 14 European countries involved in the MRP and marks a key milestone in bringing this treatment to stroke survivors acrossEurope who are suffering from lower limb spasticity. -
On
May 15, 2014 ,Allergan announced that Agence Nationale du Securite du Medicament et des Produits de Santé (ANSM) has extended the Marketing Authorisation for BOTOX® (Botulinum Toxin Type A) to include the treatment of idiopathic overactive bladder (OAB) associated with symptoms including 3 urgency urinary incontinence episodes within 3 days, urinary frequency defined as 8 or more voids/day in adult patients who don't respond to anticholinergic medication (after 3 months of treatment) or are intolerant to anticholinergic medication and not responding to a well-controlled physiotherapy. This is the eighth indication for BOTOX® inFrance and marks another key milestone in bringing this innovative treatment to patients suffering from the symptoms of OAB. BOTOX® is the only botulinum toxin indicated for the management of bladder dysfunctions inFrance . -
On
June 10, 2014 , theCourt of Appeals for the Federal Circuit reversed a ruling of theU.S. District Court for the Middle District of North Carolina , and found U.S. patent numbers 7,351,404 and 7,388,029, which cover LATISSE®, to be invalid. As of today, none of the Abbreviated New Drug Applications (ANDA) filed by the generic applicants have received approval from theU.S. Food and Drug Administration (FDA). A companion case against the generic applicants involving U.S. patent numbers 8,038,988, 8,101,161 and 8,263,054, which also cover LATISSE®, is currently pending inU.S. District Court for the Middle District of North Carolina . -
On
June 13, 2014 , the Canadian Federal Court ruled in favor ofAllergan in patent infringement applications againstApotex Inc. andCobalt Pharmaceuticals Company , a subsidiary of Actavis plc, issuing orders prohibitingHealth Canada from approving generic drug applications on LUMIGAN® (bimatoprost ophthalmic solution) 0.01% until the expiration of Canadian patent number 2,585,691 in 2026. -
On
June 30, 2014 Allergan announced completion of the topline analysis of data from its Stage 3, Phase 2 study of abicipar pegol (Anti-VEGFDARPin®) in neovascular, or "wet," age-related macular degeneration (AMD). These data along with data from previous studies were reviewed with theFDA at an end of a Phase 2 meeting where theFDA supported Allergan's decision to advance abicipar pegol to Phase 3 clinical trials and agreed with the proposed Phase 3 study plan. The complete data from the Stage 3, Phase 2 study will be presented at theAmerican Association of Retinal Specialists inSan Diego, California fromAugust 10, 2014 toAugust 13, 2014 . -
On
June 30, 2014 ,Allergan announced completion of the review of data from its Phase 2 clinical trials of bimatoprost sustained-release implant for the treatment of elevated intraocular pressure and glaucoma. Patients in this trial received a bimatoprost sustained-release implant in one eye and topical bimatoprost in the contralateral eye. The data suggests that bimatoprost sustained-release implant efficacy is comparable to daily topical bimatoprost with duration of 4 to 6 months.Allergan has shared the bimatoprost sustained-release implant data with theFDA and theFDA is supportive of the company's decision to advance to Phase 3 clinical trials.Allergan expects to initiate the Phase 3 clinical trials by the end of 2014. -
On
June 30, 2014 ,Allergan announced receipt of approval from theFDA for OZURDEX® (dexamethasone intravitreal implant) 0.7 mg as a new treatment option for diabetic macular edema (DME) in adult patients who have an artificial lens implant (pseudophakic) or who are scheduled for cataract surgery (phakic). OZURDEX® is a sustained-release biodegradable steroid implant that demonstrated long-term efficacy without the need for monthly injections. -
On
June 30, 2014 ,Allergan announced receipt of a Complete Response Letter (CRL) from theFDA to its New Drug Application (NDA) for SEMPRANA™ (dihydroergotamine), formerly referred to as LEVADEX®, which is being developed as an acute treatment of migraine in adults. In the CRL, theFDA acknowledged thatAllergan has made improvements in the canister filling process. The two specific items listed in the CRL are related to specifications around content uniformity on the improved canister filling process and on standards for device actuation. There were no issues related to the clinical safety and efficacy of the product andAllergan received draft labeling from theFDA for the product inJune 2013 .Allergan plans to meet with theFDA and will work to fully address these issues to the satisfaction of theFDA . The Company estimates that the nextFDA action will occur by the end of the second quarter of 2015.
Stockholder Value Enhancements
As part of an ongoing effort to improve efficiency and productivity which will further increase stockholder value,
As a result of this review,
-
Allergan will execute a restructuring in the remainder of 2014 that it estimates will deliver annual pre-tax savings of approximately$475 million in calendar year 2015 as compared to previously communicated 2015 expectations. Such savings will come from efficiencies and reductions in spend across the commercial organization, general and administrative functions, manufacturing and the research and development organization. -
Allergan will achieve these synergies by focusing resources on the highest value opportunities, streamlining its organizational structure, simplifying processes and interfaces, optimizing site footprints, and enhancing strategic sourcing of goods and services. -
As part of the restructuring,
Allergan will reduce its workforce by approximately 1,500 employees, or approximately 13 percent of its current global headcount, and eliminate an additional approximately 250 vacant positions. -
The restructuring will be conducted consistent with Allergan's model of driving high quality earnings growth through a customer-centric focus on net sales growth and ensuring that
Allergan maintains an innovation-focused research and development pipeline to deliver sustained long-term growth. Hence, approximately 94% of all customer-facing personnel are unaffected by the restructuring. All pharmaceutical research and development programs in the clinic will continue, and any reductions in discovery programs will not impact approvals within the strategic plan period. - Additional strategic options are available including business development / acquisitions and capital return.
-
Allergan reconfirms its aspiration of double digit sales growth across the strategic plan period (2014 through 2019), as the planned reductions in selling, general and administrative expenses and reduced focus on lower-value spend will have only a modest impact on the net sales growth. -
Allergan's strategic plan (2014 through 2019) is expected to deliver a compounded annual growth rate of greater than 20% EPS growth.
-
Allergan estimates 2014 EPS between$5.74 and$5.80 . -
Allergan estimates 2015 EPS between$8.20 and$8.40 . -
Allergan estimates 2016 EPS at approximately$10.00 .
-
-
Allergan currently estimates that it will incur total non-recurring pre-tax charges of between$375 million and$425 million in connection with the restructuring and other costs, of which$65 million to$75 million will be a non-cash charge associated with the acceleration of previously unrecognized share-based compensation costs and certain other non-cash accounting adjustments. The restructuring charges and other costs will primarily consist of employee severance and other one-time termination benefits, facility lease and other contract terminations, accelerated depreciation and asset write-downs, accelerated equity-based compensation, temporary labor and duplicate operating expenses. These non-recurring charges will be incurred beginning in the third quarter of 2014 and are expected to continue through the second quarter of 2015.
Unsolicited Proposal from Valeant
-
On
April 22, 2014 ,Allergan confirmed receipt of an unsolicited proposal from Valeant Pharmaceuticals International, Inc. (Valeant) to acquire all outstanding shares of Allergan's common stock.Allergan also confirmed receipt of revised unsolicited proposals from Valeant onMay 28 andMay 30, 2014 . Allergan's Board of Directors, in consultation with its financial and legal advisors, have unanimously rejected each of these unsolicited proposals, concluding that each substantially undervaluesAllergan , creates significant risks and uncertainties for the stockholders ofAllergan , and is not in the best interests of the Company and its stockholders. -
On
June 18, 2014 , Valeant commenced an exchange offer (the Offer) by filing a Schedule TO and Registration Statement on Form S-4 with theU.S. Securities and Exchange Commission (SEC). Pursuant to the terms of the Offer, Valeant proposes to purchase each outstanding share ofAllergan common stock, at the election of the holder, for 0.83 common shares of Valeant and$72.00 in cash, or an equal amount of cash or number of shares of Valeant common stock, in each case subject to proration. The Offer is not an all-cash offer. -
On
June 23, 2014 , Allergan's Board of Directors issued its recommendation thatAllergan stockholders reject the Offer and not tender theirAllergan shares pursuant to the Offer. The Allergan Board of Directors issued this recommendation after careful consideration, in consultation with its financial and legal advisors, and unanimously concluded that the Offer is grossly inadequate, substantially undervaluesAllergan , creates significant risks and uncertainties forAllergan stockholders and is not in the best interests ofAllergan and its stockholders.Allergan filed this recommendation with theSEC on Schedule 14D-9.
Outlook
For the full year of 2014,
-
Total product net sales between
$6,900 million and$7,050 million , excluding any future anticipated revenue from the transition services agreements related to the sale of the obesity intervention business.-
Total specialty pharmaceuticals net sales between
$5,865 million and$5,975 million . -
Total core medical devices net sales between
$1,010 million and$1,050 million . -
ALPHAGAN® franchise product net sales between
$460 million and$480 million . -
LUMIGAN® franchise product net sales between
$600 million and$620 million . -
RESTASIS® product net sales between
$1,040 million and$1,070 million . -
BOTOX® product net sales between
$2,200 million and$2,280 million . -
LATISSE® product net sales at approximately
$100 million . -
Breast aesthetics product net sales between
$400 million and$420 million . -
Facial aesthetics product net sales between
$610 million and$630 million .
-
Total specialty pharmaceuticals net sales between
- Non-GAAP cost of sales to product net sales ratio at approximately 12.5%.
-
Non-GAAP other revenue at approximately
$100 million . - Non-GAAP selling, general and administrative expenses to product net sales ratio between 37% and 38%.
- Non-GAAP research and development expenses to product net sales ratio at approximately 16.5%.
-
Non-GAAP diluted earnings per share attributable to stockholders between
$5.74 and$5.80 . - Diluted shares outstanding at approximately 304 million.
- Effective tax rate on non-GAAP earnings between 26% and 27%.
For the third quarter of 2014,
-
Total product net sales between
$1,675 million and$1,750 million , excluding any future anticipated revenue from the transition services agreements related to the sale of the obesity intervention business. -
Non-GAAP diluted earnings per share attributable to stockholders between
$1.44 and$1.47 .
In this press release,
Forward-Looking Statements
This press release contains "forward-looking statements," including but not limited to the statements by
All forward-looking statements in this press release reflect Allergan's current analysis of existing trends and information and represent Allergan's judgment only as of the date of this press release. Actual results may differ materially from current expectations based on a number of factors affecting Allergan's businesses, including, among other things, the following: changing competitive, market and regulatory conditions; Allergan's ability to obtain and maintain adequate protection for its intellectual property rights; the timing and uncertainty of the results of both the research and development and regulatory processes; domestic and foreign health care and cost containment reforms, including government pricing, tax and reimbursement policies; technological advances and patents obtained by competitors; the performance, including the approval, introduction, and consumer and physician acceptance of new products and the continuing acceptance of currently marketed products; the effectiveness of advertising and other promotional campaigns; the timely and successful implementation of strategic initiatives; the results of any pending or future litigation, investigations or claims; the uncertainty associated with the identification of and successful consummation and execution of external corporate development initiatives and strategic partnering transactions; and Allergan's ability to obtain and successfully maintain a sufficient supply of products to meet market demand in a timely manner. In addition, U.S. and international economic conditions, including higher unemployment, political instability, financial hardship, consumer confidence and debt levels, taxation, changes in interest and currency exchange rates, international relations, capital and credit availability, the status of financial markets and institutions, fluctuations or devaluations in the value of sovereign government debt, as well as the general impact of continued economic volatility, can materially affect Allergan's results. Therefore, the reader is cautioned not to rely on these forward-looking statements.
Additional information concerning the above-referenced risk factors and other risk factors can be found in press releases issued by
Important Additional Information
This communication does not constitute an offer to buy or solicitation of an offer to sell any securities.
About
® and ™ marks owned by
DARPin is a registered trademark of
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Condensed Consolidated Statements of Earnings and | ||||||||||||||||||||||||||||||||||||
Reconciliation of Non-GAAP Adjustments | ||||||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||||||
Three months ended | ||||||||||||||||||||||||||||||||||||
In millions, except per share amounts |
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GAAP |
Non-GAAP |
Non-GAAP | GAAP |
Non-GAAP |
Non-GAAP | |||||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||||||
Product net sales | $ | 1,827.3 | $ | - | $ | 1,827.3 | $ | 1,577.0 | $ | - | $ | 1,577.0 | ||||||||||||||||||||||||
Other revenues | 36.9 | (9.7 | ) | (a) | 27.2 | 20.7 | - | 20.7 | ||||||||||||||||||||||||||||
1,864.2 | (9.7 | ) | 1,854.5 | 1,597.7 | - | 1,597.7 | ||||||||||||||||||||||||||||||
Operating costs and expenses | ||||||||||||||||||||||||||||||||||||
Cost of sales (excludes amortization of intangible assets) |
222.2 | (0.9 | ) | (b) | 221.3 | 199.1 | (0.1 | ) | (l) | 199.0 | ||||||||||||||||||||||||||
Selling, general and administrative | 718.9 | (35.1 | ) | (b)(c)(d)(e)(f) | 683.8 | 609.9 | (4.2 | ) | (l)(m)(n) | 605.7 | ||||||||||||||||||||||||||
Research and development | 288.7 | (0.6 | ) | (b) | 288.1 | 266.5 | (0.7 | ) | (n) | 265.8 | ||||||||||||||||||||||||||
Amortization of intangible assets | 28.0 | (26.4 | ) | (g) | 1.6 | 29.0 | (27.6 | ) | (g) | 1.4 | ||||||||||||||||||||||||||
Restructuring charge reversal | (1.5 | ) | 1.5 | (h) | - | - | - | - | ||||||||||||||||||||||||||||
Operating income | 607.9 | 51.8 | 659.7 | 493.2 | 32.6 | 525.8 | ||||||||||||||||||||||||||||||
Non-operating income (expense) | ||||||||||||||||||||||||||||||||||||
Interest income | 2.4 | - | 2.4 | 2.0 | - | 2.0 | ||||||||||||||||||||||||||||||
Interest expense | (19.7 | ) | 0.4 | (i) | (19.3 | ) | (20.0 | ) | 0.1 | (i) | (19.9 | ) | ||||||||||||||||||||||||
Other, net | (16.2 | ) | 10.9 | (j) | (5.3 | ) | 11.2 | (11.3 | ) | (o)(p) | (0.1 | ) | ||||||||||||||||||||||||
(33.5 | ) | 11.3 | (22.2 | ) | (6.8 | ) | (11.2 | ) | (18.0 | ) | ||||||||||||||||||||||||||
Earnings from continuing operations before income taxes |
574.4 | 63.1 | 637.5 | 486.4 | 21.4 | 507.8 | ||||||||||||||||||||||||||||||
Provision for income taxes | 156.0 | 21.2 | (k) | 177.2 | 132.4 | 5.5 | (q) | 137.9 | ||||||||||||||||||||||||||||
Earnings from continuing operations | 418.4 | 41.9 | 460.3 | 354.0 | 15.9 | 369.9 | ||||||||||||||||||||||||||||||
Earnings from discontinued operations, net of income tax expense of |
- | - | - | 7.2 | (7.2 | ) | (r) | - | ||||||||||||||||||||||||||||
Net earnings | 418.4 | 41.9 | 460.3 | 361.2 | 8.7 | 369.9 | ||||||||||||||||||||||||||||||
Net earnings attributable to noncontrolling interest | 1.2 | - | 1.2 | 1.3 | - | 1.3 | ||||||||||||||||||||||||||||||
Net earnings attributable to |
$ | 417.2 | $ | 41.9 | $ | 459.1 | $ | 359.9 | $ | 8.7 | $ | 368.6 | ||||||||||||||||||||||||
Basic earnings per share attributable to |
||||||||||||||||||||||||||||||||||||
Continuing operations | $ | 1.40 | $ | 1.54 | $ | 1.19 | $ | 1.25 | ||||||||||||||||||||||||||||
Discontinued operations | - | - | 0.03 | - | ||||||||||||||||||||||||||||||||
Net basic earnings per share attributable to |
$ | 1.40 | $ | 1.54 | $ | 1.22 | $ | 1.25 | ||||||||||||||||||||||||||||
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Diluted earnings per share attributable to |
||||||||||||||||||||||||||||||||||||
Continuing operations | $ | 1.37 | $ | 1.51 | $ | 1.17 | $ | 1.22 | ||||||||||||||||||||||||||||
Discontinued operations | - | - | 0.02 | - | ||||||||||||||||||||||||||||||||
Net diluted earnings per share attributable to |
$ | 1.37 | $ | 1.51 | $ | 1.19 | $ | 1.22 | ||||||||||||||||||||||||||||
Weighted average number of common shares outstanding: |
||||||||||||||||||||||||||||||||||||
Basic | 297.6 | 297.6 | 296.0 | 296.0 | ||||||||||||||||||||||||||||||||
Diluted | 303.9 | 303.9 | 301.3 | 301.3 | ||||||||||||||||||||||||||||||||
Selected ratio as a percentage of product net sales |
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Cost of sales (excludes amortization of intangible assets) |
12.2 | % | 12.1 | % | 12.6 | % | 12.6 | % | ||||||||||||||||||||||||||||
Selling, general and administrative | 39.3 | % | 37.4 | % | 38.7 | % | 38.4 | % | ||||||||||||||||||||||||||||
Research and development | 15.8 | % | 15.8 | % | 16.9 | % | 16.9 | % | ||||||||||||||||||||||||||||
(a) |
Sales milestone revenue associated with a license agreement with |
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(b) |
Expenses related to the realignment of various business functions of |
||
(c) |
Costs of |
||
(d) |
Expenses from changes in fair value of contingent consideration of |
||
(e) |
Transaction costs of |
||
(f) |
Transaction costs of |
||
(g) | Amortization of certain intangible assets related to business combinations, asset acquisitions and product licenses | ||
(h) | Net restructuring charge reversal | ||
(i) | Interest expense associated with changes in estimated taxes related to uncertain tax positions included in prior year filings | ||
(j) | Unrealized loss on the mark-to-market adjustment to derivative instruments | ||
(k) | Total tax effect for non-GAAP pre-tax adjustments | ||
(l) |
Income from changes in fair value of contingent consideration of |
||
(m) |
Aggregate charges of |
||
(n) |
Expenses related to the realignment of various business functions of |
||
(o) |
Unrealized gain of |
||
(p) |
Gain on sale of investments of |
||
(q) | Total tax effect for non-GAAP pre-tax adjustments and other income tax adjustments, consisting of the following amounts (in millions): |
Tax effect | ||||||
Non-GAAP pre-tax adjustments of |
$ | (5.4 | ) | |||
Estimated impact of the retroactive |
(0.1 | ) | ||||
$ | (5.5 | ) |
(r) | Earnings from discontinued operations associated with the sale of the obesity intervention business unit |
"GAAP" refers to financial information presented in accordance with generally accepted accounting principles in
This press release includes non-GAAP financial measures, as defined in Regulation G promulgated by the
In this press release,
Despite the importance of non-GAAP earnings in analyzing Allergan's underlying business, the budgeting and forecasting process and designing incentive compensation, non-GAAP earnings has no standardized meaning defined by GAAP. Therefore, non-GAAP earnings has limitations as an analytical tool, and should not be considered in isolation, or as a substitute for analysis of Allergan's results as reported under GAAP. Some of these limitations are:
- it does not reflect cash expenditures, or future requirements, for expenditures relating to restructurings, legal settlements, and certain acquisitions, including severance and facility transition costs associated with acquisitions;
- it does not reflect asset impairment charges or gains or losses on the disposition of assets associated with restructuring and business exit activities;
- it does not reflect the tax benefit or tax expense associated with the items indicated;
-
it does not reflect the impact on earnings of charges or income resulting from certain matters
Allergan considers not to be indicative of its on-going operations; and - other companies in Allergan's industry may calculate non-GAAP earnings differently than it does, which may limit its usefulness as a comparative measure.
In this press release,
Reporting sales performance using constant currency sales has the limitation of excluding currency effects from the comparison of sales results over various periods, even though the effect of changing foreign currency exchange rates has an actual effect on Allergan's operating results. Investors should consider these effects in their overall analysis of Allergan's operating results.
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Condensed Consolidated Statements of Earnings and | ||||||||||||||||||||||||||||||||||||
Reconciliation of Non-GAAP Adjustments | ||||||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||||||
Six months ended | ||||||||||||||||||||||||||||||||||||
In millions, except per share amounts |
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GAAP |
Non-GAAP |
Non-GAAP | GAAP |
Non-GAAP |
Non-GAAP | |||||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||||||
Product net sales | $ | 3,446.4 | $ | - | $ | 3,446.4 | $ | 3,009.5 | $ | - | $ | 3,009.5 | ||||||||||||||||||||||||
Other revenues | 63.9 | (9.7 | ) | (a) | 54.2 | 47.8 | - | 47.8 | ||||||||||||||||||||||||||||
3,510.3 | (9.7 | ) | 3,500.6 | 3,057.3 | - | 3,057.3 | ||||||||||||||||||||||||||||||
Operating costs and expenses | ||||||||||||||||||||||||||||||||||||
Cost of sales (excludes amortization of intangible assets) |
426.7 | (1.7 | ) | (b) | 425.0 | 399.0 | (9.0 | ) | (m)(n) | 390.0 | ||||||||||||||||||||||||||
Selling, general and administrative | 1,377.5 | (39.9 | ) | (b)(c)(d)(e)(f) | 1,337.6 | 1,214.7 | (22.1 | ) | (n)(o)(p) | 1,192.6 | ||||||||||||||||||||||||||
Research and development | 637.7 | (77.8 | ) | (b)(d)(e)(f) | 559.9 | 515.3 | (0.7 | ) |
(p) |
514.6 | ||||||||||||||||||||||||||
Amortization of intangible assets | 55.8 | (53.0 | ) | (g) | 2.8 | 59.7 | (52.7 | ) | (g) | 7.0 | ||||||||||||||||||||||||||
Restructuring charges | 22.8 | (22.8 | ) | (h) | - | 4.3 | (4.3 | ) | (h) | - | ||||||||||||||||||||||||||
Operating income | 989.8 | 185.5 | 1,175.3 | 864.3 | 88.8 | 953.1 | ||||||||||||||||||||||||||||||
Non-operating income (expense) | ||||||||||||||||||||||||||||||||||||
Interest income | 4.2 | - | 4.2 | 3.6 | - | 3.6 | ||||||||||||||||||||||||||||||
Interest expense | (35.4 | ) | (1.8 | ) | (i) | (37.2 | ) | (37.4 | ) | 0.2 | (i) | (37.2 | ) | |||||||||||||||||||||||
Other, net | (22.6 | ) | 15.1 | (j) | (7.5 | ) | 2.5 | (8.9 | ) | (q)(r)(s) | (6.4 | ) | ||||||||||||||||||||||||
(53.8 | ) | 13.3 | (40.5 | ) | (31.3 | ) | (8.7 | ) | (40.0 | ) | ||||||||||||||||||||||||||
Earnings from continuing operations before income taxes |
936.0 | 198.8 | 1,134.8 | 833.0 | 80.1 | 913.1 | ||||||||||||||||||||||||||||||
Provision for income taxes | 259.1 | 56.5 | (k) | 315.6 | 206.0 | 39.1 | (t) | 245.1 | ||||||||||||||||||||||||||||
Earnings from continuing operations | 676.9 | 142.3 | 819.2 | 627.0 | 41.0 | 668.0 | ||||||||||||||||||||||||||||||
Discontinued operations: | ||||||||||||||||||||||||||||||||||||
Earnings from discontinued operations, net of income tax expense of |
- | - | - | 7.6 | (7.6 | ) | (u) | - | ||||||||||||||||||||||||||||
Loss on sale of discontinued operations, net of income tax benefit of |
(0.6 | ) | 0.6 |
(l) |
- | (259.0 | ) | 259.0 | (v) | - | ||||||||||||||||||||||||||
Discontinued operations | (0.6 | ) | 0.6 | - | (251.4 | ) | 251.4 | - | ||||||||||||||||||||||||||||
Net earnings | 676.3 | 142.9 | 819.2 | 375.6 | 292.4 | 668.0 | ||||||||||||||||||||||||||||||
Net earnings attributable to noncontrolling interest | 1.8 | - | 1.8 | 3.2 | - | 3.2 | ||||||||||||||||||||||||||||||
Net earnings attributable to |
$ | 674.5 | $ | 142.9 | $ | 817.4 | $ | 372.4 | $ | 292.4 | $ | 664.8 | ||||||||||||||||||||||||
Basic earnings per share attributable to |
||||||||||||||||||||||||||||||||||||
Continuing operations | $ | 2.27 | $ | 2.75 | $ | 2.10 | $ | 2.24 | ||||||||||||||||||||||||||||
Discontinued operations | - | - | (0.85 | ) | - | |||||||||||||||||||||||||||||||
Net basic earnings per share attributable to |
$ | 2.27 | $ | 2.75 | $ | 1.25 | $ | 2.24 | ||||||||||||||||||||||||||||
Diluted earnings per share attributable to |
||||||||||||||||||||||||||||||||||||
Continuing operations | $ | 2.22 | $ | 2.69 | $ | 2.06 | $ | 2.20 | ||||||||||||||||||||||||||||
Discontinued operations | - | - | (0.83 | ) | - | |||||||||||||||||||||||||||||||
Net diluted earnings per share attributable to |
$ | 2.22 | $ | 2.69 | $ | 1.23 | $ | 2.20 | ||||||||||||||||||||||||||||
Weighted average number of common shares outstanding: |
||||||||||||||||||||||||||||||||||||
Basic | 297.7 | 297.7 | 296.9 | 296.9 | ||||||||||||||||||||||||||||||||
Diluted | 303.7 | 303.7 | 302.5 | 302.5 | ||||||||||||||||||||||||||||||||
Selected ratio as a percentage of product net sales |
||||||||||||||||||||||||||||||||||||
Cost of sales (excludes amortization of intangible assets) |
12.4 | % | 12.3 | % | 13.3 | % | 13.0 | % | ||||||||||||||||||||||||||||
Selling, general and administrative | 40.0 | % | 38.8 | % | 40.4 | % | 39.6 | % | ||||||||||||||||||||||||||||
Research and development | 18.5 | % | 16.2 | % | 17.1 | % | 17.1 | % | ||||||||||||||||||||||||||||
(a) | Sales milestone revenue associated with a license agreement with Senju | ||
(b) |
Expenses related to the realignment of various business functions of |
||
(c) |
Costs of |
||
(d) |
Expenses from changes in fair value of contingent consideration of |
||
(e) |
Upfront licensing fee of |
||
(f) |
Acquired in-process research and development asset of |
||
(g) | Amortization of certain intangible assets related to business combinations, asset acquisitions and product licenses | ||
(h) | Net restructuring charges | ||
(i) | Interest income (expense) associated with changes in estimated taxes related to uncertain tax positions included in prior year filings | ||
(j) | Unrealized loss on the mark-to-market adjustment to derivative instruments | ||
(k) | Total tax effect for non-GAAP pre-tax adjustments and other income tax adjustments, consisting of the following amounts (in millions): |
Tax effect | ||||||
Non-GAAP pre-tax adjustments of |
$ | (42.9 | ) | |||
Change in estimated taxes related to tax positions included in prior year filings | (13.6 | ) | ||||
$ | (56.5 | ) |
(l) | Loss on the sale of discontinued operations | ||
(m) |
Fair market value inventory adjustment rollout of |
||
(n) |
Expenses from changes in fair value of contingent consideration of |
||
(o) |
Aggregate charges of |
||
(p) |
Expenses related to the realignment of various business functions of |
||
(q) |
Unrealized gain of |
||
(r) |
Gain on sale of investments of |
||
(s) |
Impairment of a non-marketable equity investment of |
||
(t) | Total tax effect for non-GAAP pre-tax adjustments and other income tax adjustments, consisting of the following amounts (in millions): |
Tax effect | ||||||
Non-GAAP pre-tax adjustments of |
$ | (21.7 | ) | |||
Estimated impact of the retroactive |
(17.4 | ) | ||||
$ | (39.1 | ) |
(u) | Earnings from discontinued operations associated with the sale of the obesity intervention business unit | ||
(v) | Expected loss on the sale of discontinued operations | ||
|
||||||||||||
Condensed Consolidated Balance Sheets | ||||||||||||
(Unaudited) | ||||||||||||
|
|
|||||||||||
in millions |
2014 | 2013 | ||||||||||
Assets | ||||||||||||
Cash and equivalents | $ | 3,189.9 | $ | 3,046.1 | ||||||||
Short-term investments | 525.6 | 603.0 | ||||||||||
Trade receivables, net | 1,055.0 | 883.3 | ||||||||||
Inventories | 299.9 | 285.3 | ||||||||||
Other current assets | 631.3 | 493.0 | ||||||||||
Assets of discontinued operations | 1.2 | 9.0 | ||||||||||
Total current assets | 5,702.9 | 5,319.7 | ||||||||||
Property, plant and equipment, net | 977.9 | 923.2 | ||||||||||
Intangible assets, net | 1,609.2 | 1,650.0 | ||||||||||
Goodwill | 2,340.6 | 2,339.4 | ||||||||||
Other noncurrent assets | 360.2 | 342.0 | ||||||||||
Total assets | $ | 10,990.8 | $ | 10,574.3 | ||||||||
Liabilities and equity | ||||||||||||
Notes payable | $ | 60.9 | $ | 55.6 | ||||||||
Accounts payable | 300.0 | 283.2 | ||||||||||
Other accrued expenses and income taxes | 1,045.5 | 905.5 | ||||||||||
Total current liabilities | 1,406.4 | 1,244.3 | ||||||||||
Long-term debt | 2,091.8 | 2,098.3 | ||||||||||
Other liabilities | 698.3 | 762.2 | ||||||||||
Equity: | ||||||||||||
|
6,786.0 | 6,463.2 | ||||||||||
Noncontrolling interest | 8.3 | 6.3 | ||||||||||
Total equity | 6,794.3 | 6,469.5 | ||||||||||
Total liabilities and equity | $ | 10,990.8 | $ | 10,574.3 | ||||||||
DSO | 53 | 49 | ||||||||||
DOH | 123 | 127 | ||||||||||
Cash and equivalents and short-term investments | $ | 3,715.5 | $ | 3,649.1 | ||||||||
Total notes payable and long-term debt | (2,152.7 | ) | (2,153.9 | ) | ||||||||
Cash and equivalents and short-term investments, net of debt | $ | 1,562.8 | $ | 1,495.2 | ||||||||
Debt-to-capital percentage | 24.1 | % | 25.0 | % | ||||||||
|
||||||||||||||
Reconciliation of Non-GAAP Earnings and Diluted Earnings Per Share from Continuing Operations | ||||||||||||||
(Unaudited) | ||||||||||||||
In millions, except per share amounts |
Three months ended | |||||||||||||
|
|
|||||||||||||
2014 | 2013 | |||||||||||||
Earnings from continuing operations | $ | 418.4 | $ | 354.0 | ||||||||||
Less net earnings attributable to noncontrolling interest | 1.2 | 1.3 | ||||||||||||
Earnings from continuing operations attributable to |
417.2 | 352.7 | ||||||||||||
Non-GAAP pre-tax adjustments: | ||||||||||||||
Sales milestone revenue associated with a license agreement with Senju | (9.7 | ) | - | |||||||||||
Expenses related to the realignment of various business functions | 2.5 | 0.8 | ||||||||||||
Costs associated with the Allergan Board of Directors' consideration and rejection of an unsolicited proposal from Valeant to acquire all of the outstanding shares of |
30.2 | - | ||||||||||||
Expenses from changes in fair value of contingent consideration and integration and transaction costs associated with business combinations |
3.6 | 1.3 | ||||||||||||
Transaction costs associated with a license agreement for technology that has not achieved regulatory approval |
0.2 | - | ||||||||||||
Transaction costs associated with an acquired in-process research and development asset for technology that has not achieved regulatory approval |
0.1 | - | ||||||||||||
Amortization of intangible assets | 26.4 | 27.6 | ||||||||||||
Net restructuring charge reversal | (1.5 | ) | - | |||||||||||
Interest expense associated with changes in estimated taxes related to uncertain tax positions included in prior year filings |
0.4 | 0.1 | ||||||||||||
Unrealized loss (gain) on derivative instruments | 10.9 | (10.6 | ) | |||||||||||
Aggregate charges for external costs for stockholder derivative litigation associated with the DOJ settlement and other legal contingency expenses |
- | 2.9 | ||||||||||||
Gain on sale of investments | - | (0.7 | ) | |||||||||||
480.3 | 374.1 | |||||||||||||
Tax effect for above items | (21.2 | ) | (5.4 | ) | ||||||||||
Estimated impact of the retroactive |
- | (0.1 | ) | |||||||||||
Non-GAAP earnings from continuing operations | $ | 459.1 | $ | 368.6 | ||||||||||
Weighted average number of shares outstanding | 297.6 | 296.0 | ||||||||||||
Net shares assumed issued using the treasury stock method for options and non-vested equity shares and share units outstanding during each period based on average market price |
6.3 | 5.3 | ||||||||||||
303.9 | 301.3 | |||||||||||||
Diluted earnings per share from continuing operations | $ | 1.37 | $ | 1.17 | ||||||||||
Non-GAAP earnings per share adjustments: | ||||||||||||||
Sales milestone revenue associated with a license agreement with Senju | (0.02 | ) | - | |||||||||||
Expenses related to the realignment of various business functions | 0.01 | - | ||||||||||||
Costs associated with the Allergan Board of Directors' consideration and rejection of an unsolicited proposal from Valeant to acquire all of the outstanding shares of |
0.07 | - | ||||||||||||
Expenses from changes in fair value of contingent consideration and integration and transaction costs associated with business combinations |
0.01 | - | ||||||||||||
Amortization of intangible assets | 0.06 | 0.06 | ||||||||||||
Net restructuring charge reversal | (0.01 | ) | - | |||||||||||
Unrealized loss (gain) on derivative instruments | 0.02 | (0.02 | ) | |||||||||||
Aggregate charges for external costs for stockholder derivative litigation associated with the DOJ settlement and other legal contingency expenses |
- | 0.01 | ||||||||||||
Non-GAAP diluted earnings per share from continuing operations | $ | 1.51 | $ | 1.22 | ||||||||||
Year over year change | 23.8 | % | ||||||||||||
|
||||||||||||||
Reconciliation of Non-GAAP Earnings and Diluted Earnings Per Share from Continuing Operations | ||||||||||||||
(Unaudited) | ||||||||||||||
In millions, except per share amounts |
Six months ended | |||||||||||||
|
|
|||||||||||||
2014 | 2013 | |||||||||||||
Earnings from continuing operations | $ | 676.9 | $ | 627.0 | ||||||||||
Less net earnings attributable to noncontrolling interest | 1.8 | 3.2 | ||||||||||||
Earnings from continuing operations attributable to |
675.1 | 623.8 | ||||||||||||
Non-GAAP pre-tax adjustments: | ||||||||||||||
Sales milestone revenue associated with a license agreement with Senju | (9.7 | ) | - | |||||||||||
Expenses related to the realignment of various business functions | 9.4 | 0.9 | ||||||||||||
Costs associated with the Allergan Board of Directors' consideration and rejection of an unsolicited proposal from Valeant to acquire all of the outstanding shares of |
30.2 | - | ||||||||||||
Expenses from changes in fair value of contingent consideration and integration and transaction costs associated with business combinations |
3.8 | 18.5 | ||||||||||||
Research and development expenses related to an upfront licensing fee associated with a license agreement for technology that has not achieved regulatory approval and related transaction costs |
65.4 | - | ||||||||||||
Acquired in-process research and development asset included in research and development expenses for technology that has not achieved regulatory approval and related transaction costs |
10.6 | - | ||||||||||||
Amortization of intangible assets | 53.0 | 52.7 | ||||||||||||
Net restructuring charges | 22.8 | 4.3 | ||||||||||||
Interest (income) expense associated with changes in estimated taxes related to uncertain tax positions included in prior year filings |
(1.8 | ) | 0.2 | |||||||||||
Unrealized loss (gain) on derivative instruments | 15.1 | (11.9 | ) | |||||||||||
Fair market value inventory adjustment rollout associated with the acquisition of |
- | 8.9 | ||||||||||||
Aggregate charges for external costs for stockholder derivative litigation associated with the DOJ settlement and other legal contingency expenses |
- | 3.5 | ||||||||||||
Gain on sale of investments | - | (0.7 | ) | |||||||||||
Impairment of a non-marketable equity investment | - | 3.7 | ||||||||||||
873.9 | 703.9 | |||||||||||||
Tax effect for above items | (42.9 | ) | (21.7 | ) | ||||||||||
Change in estimated taxes related to tax positions included in prior year filings | (13.6 | ) | - | |||||||||||
Estimated impact of the retroactive |
- | (17.4 | ) | |||||||||||
Non-GAAP earnings from continuing operations | $ | 817.4 | $ | 664.8 | ||||||||||
Weighted average number of shares outstanding | 297.7 | 296.9 | ||||||||||||
Net shares assumed issued using the treasury stock method for options and non-vested equity shares and share units outstanding during each period based on average market price |
6.0 | 5.6 | ||||||||||||
303.7 | 302.5 | |||||||||||||
Diluted earnings per share from continuing operations | $ | 2.22 | $ | 2.06 | ||||||||||
Non-GAAP earnings per share adjustments: | ||||||||||||||
Sales milestone revenue associated with a license agreement with Senju | (0.02 | ) | - | |||||||||||
Expenses related to the realignment of various business functions | 0.02 | - | ||||||||||||
Costs associated with the Allergan Board of Directors' consideration and rejection of an unsolicited proposal from Valeant to acquire all of the outstanding shares of |
0.07 | - | ||||||||||||
Expenses from changes in fair value of contingent consideration and integration and transaction costs associated with business combinations |
0.01 | 0.05 | ||||||||||||
Research and development expenses related to an upfront licensing fee associated with a license agreement for technology that has not achieved regulatory approval and related transaction costs |
0.21 | - | ||||||||||||
Acquired in-process research and development asset included in research and development expenses for technology that has not achieved regulatory approval and related transaction costs |
0.02 | - | ||||||||||||
Amortization of intangible assets | 0.12 | 0.12 | ||||||||||||
Net restructuring charges | 0.05 | 0.01 | ||||||||||||
Unrealized loss (gain) on derivative instruments | 0.03 | (0.02 | ) | |||||||||||
Change in estimated taxes related to tax positions included in prior year filings | (0.04 | ) | - | |||||||||||
Fair market value inventory adjustment rollout associated with the acquisition of |
- | 0.02 | ||||||||||||
Aggregate charges for external costs for stockholder derivative litigation associated with the DOJ settlement and other legal contingency expenses |
- | 0.01 | ||||||||||||
Impairment of a non-marketable equity investment | - | 0.01 | ||||||||||||
Estimated impact of the retroactive |
- | (0.06 | ) | |||||||||||
Non-GAAP diluted earnings per share from continuing operations | $ | 2.69 | $ | 2.20 | ||||||||||
Year over year change | 22.3 | % | ||||||||||||
|
|||||||||||||||||||||||||||||||||||||
Supplemental Non-GAAP Information | |||||||||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||||||||
Three months ended | |||||||||||||||||||||||||||||||||||||
|
|
$ change in net sales | Percent change in net sales | ||||||||||||||||||||||||||||||||||
in millions |
2014 | 2013 | Total | Performance | Currency | Total | Performance | Currency | |||||||||||||||||||||||||||||
|
$ | 827.0 | $ | 722.4 |
$ |
104.6 |
$ | 107.2 | $ | (2.6 | ) | 14.5 | % | 14.8 | % | (0.3 | )% | ||||||||||||||||||||
Botox/Neuromodulators | 579.4 | 513.0 | 66.4 | 70.3 | (3.9 | ) | 12.9 | % | 13.7 | % | (0.8 | )% | |||||||||||||||||||||||||
|
119.7 | 112.3 | 7.4 | 7.6 | (0.2 | ) | 6.6 | % | 6.8 | % | (0.2 | )% | |||||||||||||||||||||||||
|
1,526.1 | 1,347.7 | 178.4 | 185.1 | (6.7 | ) | 13.2 | % | 13.7 | % | (0.5 | )% | |||||||||||||||||||||||||
Breast Aesthetics | 110.2 | 106.8 | 3.4 | 3.1 | 0.3 | 3.2 | % | 2.9 | % | 0.3 | % | ||||||||||||||||||||||||||
Facial Aesthetics | 178.3 | 122.5 | 55.8 | 56.7 | (0.9 | ) | 45.6 | % | 46.3 | % | (0.7 | )% | |||||||||||||||||||||||||
Core Medical Devices | 288.5 | 229.3 | 59.2 | 59.8 | (0.6 | ) | 25.8 | % | 26.1 | % | (0.3 | )% | |||||||||||||||||||||||||
Other (a) | 12.7 | - | 12.7 | 12.7 | - | N/A | N/A | N/A | |||||||||||||||||||||||||||||
Total Medical Devices | 301.2 | 229.3 | 71.9 | 72.5 | (0.6 | ) | 31.4 | % | 31.6 | % | (0.2 | )% | |||||||||||||||||||||||||
Product net sales |
$ |
1,827.3 |
$ | 1,577.0 |
$ |
250.3 |
$ | 257.6 | $ | (7.3 | ) | 15.9 | % | 16.3 | % | (0.4 | )% | ||||||||||||||||||||
Domestic | 61.9 | % | 61.1 | % | |||||||||||||||||||||||||||||||||
International | 38.1 | % | 38.9 | % | |||||||||||||||||||||||||||||||||
Selected Product Net Sales (b): | |||||||||||||||||||||||||||||||||||||
Alphagan P, Alphagan, and Combigan | $ | 125.4 | $ | 120.1 | $ | 5.3 | $ | 6.4 | $ | (1.1 | ) | 4.5 | % | 5.3 | % | (0.8 | )% | ||||||||||||||||||||
Lumigan Franchise | 174.7 | 158.0 | 16.7 | 14.6 | 2.1 | 10.5 | % | 9.3 | % | 1.2 | % | ||||||||||||||||||||||||||
Total Glaucoma Products | 302.5 | 280.4 | 22.1 | 21.1 | 1.0 | 7.9 | % | 7.5 | % | 0.4 | % | ||||||||||||||||||||||||||
Restasis | 269.3 | 216.4 | 52.9 | 54.5 | (1.6 | ) | 24.4 | % | 25.2 | % | (0.8 | )% | |||||||||||||||||||||||||
Latisse | 25.1 | 27.6 | (2.5 | ) | (2.4 | ) | (0.1 | ) | (9.4 | )% | (8.7 | )% | (0.7 | )% | |||||||||||||||||||||||
|
1,814.6 | 1,577.0 | 237.6 | 244.9 | (7.3 | ) | 15.1 | % | 15.5 | % | (0.4 | )% | |||||||||||||||||||||||||
Six months ended | |||||||||||||||||||||||||||||||||||||
|
|
$ change in net sales | Percent change in net sales | ||||||||||||||||||||||||||||||||||
in millions |
2014 |
2013 | Total | Performance | Currency | Total | Performance | Currency | |||||||||||||||||||||||||||||
|
$ | 1,557.4 | $ | 1,391.0 |
$ |
166.4 |
$ | 180.3 | $ | (13.9 | ) | 12.0 | % | 13.0 | % | (1.0 | )% | ||||||||||||||||||||
Botox/Neuromodulators | 1,081.2 | 970.9 | 110.3 | 123.0 | (12.7 | ) | 11.4 | % | 12.7 | % | (1.3 | )% | |||||||||||||||||||||||||
|
246.8 | 217.6 | 29.2 | 29.7 | (0.5 | ) | 13.4 | % | 13.6 | % | (0.2 | )% | |||||||||||||||||||||||||
|
2,885.4 | 2,579.5 | 305.9 | 333.0 | (27.1 | ) | 11.9 | % | 12.9 | % | (1.0 | )% | |||||||||||||||||||||||||
Breast Aesthetics | 209.7 | 196.4 | 13.3 | 14.1 | (0.8 | ) | 6.8 | % | 7.2 | % | (0.4 | )% | |||||||||||||||||||||||||
Facial Aesthetics | 326.2 | 233.6 | 92.6 | 96.3 | (3.7 | ) | 39.6 | % | 41.2 | % | (1.6 | )% | |||||||||||||||||||||||||
Core Medical Devices | 535.9 | 430.0 | 105.9 | 110.4 | (4.5 | ) | 24.6 | % | 25.7 | % | (1.1 | )% | |||||||||||||||||||||||||
Other (a) | 25.1 | - | 25.1 | 25.1 | - | N/A | N/A | N/A | |||||||||||||||||||||||||||||
Total Medical Devices | 561.0 | 430.0 | 131.0 | 135.5 | (4.5 | ) | 30.5 | % | 31.5 | % | (1.0 | )% | |||||||||||||||||||||||||
Product net sales |
$ |
3,446.4 |
$ |
3,009.5 |
$ |
436.9 |
$ | 468.5 | $ | (31.6 | ) | 14.5 | % | 15.6 | % | (1.1 | )% | ||||||||||||||||||||
Domestic | 62.1 | % | 61.0 | % | |||||||||||||||||||||||||||||||||
International | 37.9 | % | 39.0 | % | |||||||||||||||||||||||||||||||||
Selected Product Net Sales (b): | |||||||||||||||||||||||||||||||||||||
Alphagan P, Alphagan, and Combigan | $ | 246.7 | $ | 236.8 | $ | 9.9 | $ | 13.4 | $ | (3.5 | ) | 4.2 | % | 5.6 | % | (1.4 | )% | ||||||||||||||||||||
Lumigan Franchise | 319.7 | 299.2 | 20.5 | 18.3 | 2.2 | 6.8 | % | 6.1 | % | 0.7 | % | ||||||||||||||||||||||||||
Total Glaucoma Products | 571.0 | 540.8 | 30.2 | 31.6 | (1.4 | ) | 5.6 | % | 5.8 | % | (0.2 | )% | |||||||||||||||||||||||||
Restasis | 501.0 | 423.1 | 77.9 | 81.8 | (3.9 | ) | 18.4 | % | 19.3 | % | (0.9 | )% | |||||||||||||||||||||||||
Latisse | 48.8 | 52.2 | (3.4 | ) | (3.0 | ) | (0.4 | ) | (6.6 | )% | (5.8 | )% | (0.8 | )% | |||||||||||||||||||||||
|
3,421.3 | 3,009.5 | 411.8 | 443.4 | (31.6 | ) | 13.7 | % | 14.7 | % | (1.0 | )% | |||||||||||||||||||||||||
(a) |
Other medical devices product net sales consist of sales made pursuant to transition services agreements with |
||
(b) | Percentage change in selected product net sales is calculated on amounts reported to the nearest whole dollar. Total glaucoma products include the Alphagan and Lumigan franchises. |
|
||||||||||
Reconciliation of GAAP Diluted Earnings Per Share Expectations | ||||||||||
To Non-GAAP Diluted Earnings Per Share Expectations | ||||||||||
(Unaudited) | ||||||||||
Third Quarter 2014 | ||||||||||
Low | High | |||||||||
GAAP diluted earnings per share attributable to |
$ | 1.38 | $ | 1.41 | ||||||
Amortization of intangible assets | 0.06 | 0.06 | ||||||||
Non-GAAP diluted earnings per share from continuing operations expectations | $ | 1.44 | $ | 1.47 | ||||||
Full Year 2014 | ||||||||||
Low | High | |||||||||
GAAP diluted earnings per share attributable to |
$ | 5.16 | $ | 5.22 | ||||||
Sales milestone revenue associated with a license agreement with Senju | (0.02 | ) | (0.02 | ) | ||||||
Expenses related to the realignment of various business functions | 0.02 | 0.02 | ||||||||
Costs associated with the Allergan Board of Directors' consideration and rejection of an unsolicited proposal from Valeant to acquire all of the outstanding shares of |
0.07 | 0.07 | ||||||||
Expenses from changes in fair value of contingent consideration and integration and transaction costs associated with business combinations |
0.01 | 0.01 | ||||||||
Research and development expenses related to an upfront licensing fee associated with a license agreement for technology that has not achieved regulatory approval and related transaction costs |
0.21 | 0.21 | ||||||||
Acquired in-process research and development asset included in research and development expenses for technology that has not achieved regulatory approval and related transaction costs |
0.02 | 0.02 | ||||||||
Amortization of intangible assets | 0.23 | 0.23 | ||||||||
Net restructuring charges | 0.05 | 0.05 | ||||||||
Unrealized loss on derivative instruments | 0.03 | 0.03 | ||||||||
Change in estimated taxes related to tax positions included in prior year filings | (0.04 | ) | (0.04 | ) | ||||||
Non-GAAP diluted earnings per share from continuing operations expectations | $ | 5.74 | $ | 5.80 | ||||||
(a) |
GAAP diluted earnings per share from continuing operations expectations exclude any potential impact of future unrealized gains or losses on derivative instruments, changes in contingent consideration, integration and transaction costs associated with business combinations, expenses related to the realignment of various business functions, costs associated with the |
Allergan Contacts
Source: