Attached files
| file | filename |
|---|---|
| 8-K/A - 8-K/A - ABBOTT LABORATORIES | a15-5987_18ka.htm |
Exhibit 99.1
Abbott Laboratories and Subsidiaries
Unaudited Pro Forma Consolidated Financial Information
On February 27, 2015, Abbott Laboratories (“Abbott”) completed the sale of its developed markets branded generics pharmaceuticals business (“Business”) to Mylan in exchange for 110 million ordinary shares of Mylan N.V.
The following unaudited pro forma consolidated balance sheet of Abbott as of December 31, 2014 assumes that the sale of the Business occurred on December 31, 2014. The statement is presented based on information currently available, is intended for informational purposes only, and does not purport to represent what Abbott’s financial position actually would have been had the sale of the Business occurred on December 31, 2014, or to project Abbott’s financial performance for any future period.
The unaudited pro forma consolidated financial information should be read in conjunction with the audited consolidated financial statements and accompanying notes and “Management’s discussion and Analysis of Financial Condition and Results of Operations” included in Abbott’s Form 10-K for the year ended December 31, 2014. The Historical column in the Unaudited Pro Forma Consolidated Balance Sheet reflects Abbott’s historical balance sheet at December 31, 2014 and does not reflect any adjustments related to the sale of the Business. The information in the Sale of Business column in the Unaudited Pro Forma Consolidated Balance Sheet was derived from the assets and liabilities held for sale and related to the Business at December 31, 2014. The Sale of Business column also reflects the estimated fair value of the proceeds and the gain resulting from the difference between fair value of the proceeds and the carrying value of the Business assets and liabilities held for sale.
Abbott Laboratories and Subsidiaries
Unaudited Pro Forma Consolidated Balance Sheet
As of December 31, 2014
(dollars in millions)
|
|
|
Historical |
|
Sale of |
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Notes |
|
Pro Forma |
| |||
|
Current Assets: |
|
|
|
|
|
|
|
|
| |||
|
Cash and cash equivalents |
|
$ |
4,063 |
|
|
|
|
|
$ |
4,063 |
| |
|
Investments |
|
397 |
|
5,774 |
|
(a) |
|
6,171 |
| |||
|
Trade receivables, less allowances |
|
3,586 |
|
|
|
|
|
3,586 |
| |||
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Inventories: |
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|
|
|
|
|
|
|
| |||
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Finished products |
|
1,807 |
|
|
|
|
|
1,807 |
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Work in process |
|
278 |
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|
|
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|
278 |
| |||
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Materials |
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558 |
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|
|
|
|
558 |
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Total inventories |
|
2,643 |
|
|
|
|
|
2,643 |
| |||
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Deferred income taxes |
|
1,705 |
|
|
|
|
|
1,705 |
| |||
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Other prepaid expenses and receivables |
|
1,975 |
|
|
|
|
|
1,975 |
| |||
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Current assets held for disposition |
|
892 |
|
(741 |
) |
|
|
151 |
| |||
|
Total Current Assets |
|
15,261 |
|
5,033 |
|
|
|
20,294 |
| |||
|
|
|
|
|
|
|
|
|
|
| |||
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Investments |
|
229 |
|
|
|
|
|
229 |
| |||
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Property and Equipment, at Cost: |
|
12,632 |
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|
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|
12,632 |
| |||
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Less: accumulated depreciation and amortization |
|
6,697 |
|
|
|
|
|
6,697 |
| |||
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Net Property and Equipment |
|
5,935 |
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|
|
|
|
5,935 |
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Intangible Assets, net of amortization |
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6,198 |
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|
|
|
|
6,198 |
| |||
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Goodwill |
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10,067 |
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|
10,067 |
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Deferred Income Taxes and Other Assets |
|
1,651 |
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|
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|
|
1,651 |
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Non-current Assets Held for Disposition |
|
1,934 |
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(1,911 |
) |
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|
23 |
| |||
|
|
|
$ |
41,275 |
|
$ |
3,122 |
|
|
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$ |
44,397 |
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|
|
| |||
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Current Liabilities: |
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|
|
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|
|
|
|
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Short-term borrowings |
|
$ |
4,382 |
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|
|
|
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$ |
4,382 |
| |
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Trade accounts payable |
|
1,064 |
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|
|
|
|
1,064 |
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Salaries, wages and commissions |
|
776 |
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|
|
|
|
776 |
| |||
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Other accrued liabilities |
|
2,943 |
|
204 |
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(b) |
|
3,147 |
| |||
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Dividends payable |
|
362 |
|
|
|
|
|
362 |
| |||
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Income taxes payable |
|
270 |
|
350 |
|
|
|
620 |
| |||
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Current portion of long-term debt |
|
55 |
|
|
|
|
|
55 |
| |||
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Current liabilities held for disposition |
|
680 |
|
(403 |
) |
|
|
277 |
| |||
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Total Current Liabilities |
|
10,532 |
|
151 |
|
|
|
10,683 |
| |||
|
|
|
|
|
|
|
|
|
|
| |||
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Long-term Debt |
|
3,408 |
|
|
|
|
|
3,408 |
| |||
|
Post-employment Obligations and other long-term liabilities |
|
5,588 |
|
1,402 |
|
(c) |
|
6,990 |
| |||
|
Non-current liabilities held for disposition |
|
108 |
|
(108 |
) |
|
|
— |
| |||
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Commitments and Contingencies |
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|
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Shareholders’ Investment: |
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|
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Preferred shares, one dollar par value Authorized — 1,000,000 shares, none issued |
|
— |
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|
|
|
|
— |
| |||
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Common shares, without par value Authorized — 2,400,000,000 shares Issued at stated capital amount — Shares: 1,694,929,949 |
|
12,383 |
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|
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|
|
12,383 |
| |||
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Common shares held in treasury, at cost — Shares: 186,894,515 |
|
(8,678 |
) |
|
|
|
|
(8,678 |
) | |||
|
Earnings employed in the business |
|
22,874 |
|
1,621 |
|
(d) |
|
24,495 |
| |||
|
Accumulated other comprehensive income (loss) |
|
(5,053 |
) |
56 |
|
|
|
(4,997 |
) | |||
|
Total Abbott Shareholders’ Investment |
|
21,526 |
|
1,677 |
|
|
|
23,203 |
| |||
|
Noncontrolling Interests in Subsidiaries |
|
113 |
|
|
|
|
|
113 |
| |||
|
Total Shareholders’ Investment |
|
21,639 |
|
1,677 |
|
|
|
23,316 |
| |||
|
|
|
$ |
41,275 |
|
$ |
3,122 |
|
|
|
$ |
44,397 |
|
Note 1. Pro Forma Adjustments
(a) Reflects the estimated fair value of the Mylan shares received.
(b) Reflects the estimated deferred revenue related to the transition services and manufacturing supply agreements.
(c) Reflects the estimated non-current deferred revenue related to the transition services and manufacturing supply agreements and noncurrent income tax liabilities.
(d) Reflects the estimated gain on the sale of the Business.