FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
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(Mark One) |
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QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE |
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For the quarterly period ended March 31, 2004 |
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OR |
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TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE |
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For the transition period from to |
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Commission File No. 1-2189 |
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ABBOTT LABORATORIES
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An Illinois Corporation |
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I.R.S. Employer Identification |
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No. 36-0698440 |
100 Abbott Park Road
Abbott Park, Illinois 60064-6400
Telephone: (847) 937-6l00
Indicate by check mark whether the registrant (l) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of l934 during the preceding l2 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý. No o.
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes ý. No o.
As of March 31, 2004, Abbott Laboratories had 1,559,676,189 common shares without par value outstanding.
PART I. FINANCIAL INFORMATION
Abbott Laboratories and Subsidiaries
Condensed Consolidated Financial Statements
(Unaudited)
Abbott Laboratories and Subsidiaries
Condensed Consolidated Statement of Earnings
(Unaudited)
(dollars and shares in thousands except per share data)
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Three Months Ended March 31 |
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2004 |
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2003 |
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Net Sales |
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$ |
5,216,053 |
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$ |
4,580,463 |
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Cost of products sold |
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2,480,281 |
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2,197,741 |
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Research and development |
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429,024 |
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406,027 |
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Acquired in-process research and development |
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59,900 |
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— |
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Selling, general and administrative |
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1,214,682 |
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996,205 |
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Total Operating Cost and Expenses |
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4,183,887 |
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3,599,973 |
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Operating Earnings |
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1,032,166 |
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980,490 |
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Net interest expense |
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35,345 |
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37,290 |
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(Income) from TAP Pharmaceutical Products Inc. joint venture |
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(101,673 |
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(132,088 |
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Net foreign exchange loss |
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4,456 |
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35,196 |
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Other (income) expense, net |
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(15,346 |
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(13,831 |
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Earnings Before Taxes |
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1,109,384 |
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1,053,923 |
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Taxes on earnings |
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286,475 |
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252,942 |
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Net Earnings |
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$ |
822,909 |
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$ |
800,981 |
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Basic Earnings Per Common Share |
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$ |
0.53 |
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$ |
0.51 |
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Diluted Earnings Per Common Share |
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$ |
0.52 |
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$ |
0.51 |
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Cash Dividends Declared Per Common Share |
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$ |
0.26 |
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$ |
0.245 |
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Average Number of Common Shares Outstanding Used for Basic Earnings Per Common Share |
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1,562,450 |
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1,562,492 |
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Dilutive Common Stock Options |
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9,669 |
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5,605 |
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Average Number of Common Shares Outstanding Plus Dilutive Common Stock Options |
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1,572,119 |
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1,568,097 |
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Outstanding Common Stock Options Having No Dilutive Effect |
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77,685 |
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60,144 |
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The accompanying notes to consolidated financial statements are an integral part of this statement.
2
Abbott Laboratories and Subsidiaries
Condensed Consolidated Statement of Cash Flows
(Unaudited)
(dollars in thousands)
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Three Months Ended March 31 |
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2004 |
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2003 |
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Cash Flow From (Used in) Operating Activities: |
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Net earnings |
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$ |
822,909 |
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$ |
800,981 |
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Adjustments to reconcile net earnings to net cash from operating activities - |
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Depreciation |
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233,675 |
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226,252 |
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Amortization of intangibles |
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93,746 |
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86,403 |
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Acquired in-process research and development |
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59,900 |
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— |
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Trade receivables |
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163,640 |
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246,501 |
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Inventories |
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(44,934 |
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(124,240 |
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Other, net |
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26,406 |
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(292,881 |
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Net Cash From Operating Activities |
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1,355,342 |
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943,016 |
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Cash Flow From (Used in) Investing Activities: |
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Acquisition of business |
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(372,106 |
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— |
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Acquisitions of property and equipment |
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(363,581 |
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(284,914 |
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Investment securities transactions |
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(575,771 |
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12,457 |
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Other |
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1,633 |
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4,067 |
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Net Cash (Used in) Investing Activities |
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(1,309,825 |
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(268,390 |
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Cash Flow From (Used in) Financing Activities: |
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Proceeds from (repayments of) commercial paper, net |
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(781,000 |
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(597,000 |
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Proceeds from issuance of long-term debt |
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1,500,000 |
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— |
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Other borrowing transactions, net |
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(26,214 |
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643,432 |
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Common share transactions |
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(264,069 |
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(88,255 |
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Dividends paid |
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(383,378 |
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(367,353 |
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Net Cash From (Used in) Financing Activities |
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45,339 |
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(409,176 |
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Effect of exchange rate changes on cash and cash equivalents |
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38,004 |
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50,584 |
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Net Increase in Cash and Cash Equivalents |
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128,860 |
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316,034 |
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Cash and Cash Equivalents, Beginning of Year |
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995,124 |
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704,450 |
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Cash and Cash Equivalents, End of Period |
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$ |
1,123,984 |
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$ |
1,020,484 |
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The accompanying notes to consolidated financial statements are an integral part of this statement.
3
Abbott Laboratories and Subsidiaries
Condensed Consolidated Balance Sheet
(Unaudited)
(dollars in thousands)
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March 31 |
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December 31 |
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Assets |
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Current Assets: |
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Cash and cash equivalents |
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$ |
1,123,984 |
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$ |
995,124 |
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Investment securities |
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929,883 |
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