Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Celgene Corp., consolidated income statement

US$ in millions

12 months ended:	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Net product sales	15,265)	12,973)	11,185)	9,161)	7,564)
Cost of goods sold, excluding amortization of acquired intangible assets	(587)	(461)	(438)	(420)	(386)
Gross profit	14,678)	12,512)	10,747)	8,741)	7,178)
Other revenue	16)	30)	45)	95)	107)
Research and development	(5,673)	(5,915)	(4,470)	(3,697)	(2,431)
Selling, general and administrative	(3,250)	(2,941)	(2,658)	(2,305)	(2,028)
Amortization of acquired intangible assets	(468)	(329)	(459)	(279)	(258)
Acquisition related gains (charges) and restructuring, net	(112)	1,350)	(38)	(300)	(49)
Operating income	5,191)	4,707)	3,167)	2,255)	2,519)
Interest and investment income, net	45)	105)	30)	31)	28)
Interest expense	(741)	(522)	(500)	(311)	(176)
Other income (expense), net	337)	24)	(324)	48)	(44)
Other income and expense	(359)	(393)	(794)	(231)	(192)
Income before income taxes	4,832)	4,314)	2,373)	2,024)	2,327)
Income tax provision	(786)	(1,374)	(373)	(422)	(328)
Net income	4,046)	2,940)	1,999)	1,602)	2,000)

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

The financial data indicates several notable trends and patterns over the five-year period analyzed.

Net product sales: There is a consistent and significant increase in net product sales, rising from $7,564 million in 2014 to $15,265 million in 2018. This reflects strong revenue growth year over year.
Cost of goods sold (COGS): COGS increased gradually from $386 million in 2014 to $587 million in 2018, but the increase is moderate relative to sales, indicating some operational leverage and cost control.
Gross profit: Gross profit rose steadily from $7,178 million in 2014 to $14,678 million in 2018, which is consistent with the growth in sales and relatively controlled cost of goods sold, suggesting improved profitability at the gross margin level.
Other revenue: Other revenue shows a declining trend, decreasing from $107 million in 2014 to $16 million in 2018, suggesting diminishing contributions from non-core revenue sources.
Research and development (R&D): R&D expenses increased significantly from $2,431 million in 2014 to a peak of $5,915 million in 2017, followed by a slight decrease to $5,673 million in 2018. The upward trend reflects a substantial investment in development activities, peaking in 2017 before a minor reduction.
Selling, general and administrative (SG&A) expenses: SG&A expenses show a steady increase each year, from $2,028 million in 2014 to $3,250 million in 2018, indicating rising operating costs likely associated with expanded sales and administrative support.
Amortization of acquired intangible assets: This expense shows fluctuations, rising from $258 million in 2014 to $468 million in 2018 with a dip in 2017. The variability may reflect differing acquisition activities or amortization schedules over time.
Acquisition related gains (charges) and restructuring, net: There is notable volatility in this category, with charges of $49 million in 2014 and a large gain of $1,350 million in 2017, surrounded by relatively minor charges in other years. The 2017 gain significantly boosted operating income that year.
Operating income: Operating income exhibits an overall upward trend, growing from $2,519 million in 2014 to $5,191 million in 2018. The substantial increase, especially from 2016 onwards, demonstrates improved operational efficiency and profitability, bolstered by the 2017 acquisition-related gain.
Interest and investment income, net: Interest and investment income remains relatively stable, with a minor peak in 2017 at $105 million, but takes a downturn in 2018 to $45 million, indicating limited but fluctuating additional income sources.
Interest expense: Interest expense rises steadily from $176 million in 2014 to $741 million in 2018, reflecting increasing debt or higher borrowing costs over the period.
Other income (expense), net: Other income and expense display volatility, with losses in some years and gains in others, including a notable gain of $337 million in 2018 after significant losses in 2016 and 2017, suggesting variable non-operating activities.
Income before income taxes: There is a steady increase in income before income taxes, from $2,327 million in 2014 to $4,832 million in 2018, following the trend of rising operating income and despite growing interest expenses.
Income tax provision: The income tax provision shows irregular movement, decreasing from $328 million in 2014 to $373 million in 2016, then spiking to $1,374 million in 2017 before dropping to $786 million in 2018, possibly reflecting tax strategy or changes in tax regulations.
Net income: Net income increased from $2,000 million in 2014 to $4,046 million in 2018, with a dip in 2015 followed by continuous growth. This confirms the company's improving profitability despite rising expenses and fluctuations in tax provision.

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Celgene Corp. (NASDAQ:CELG)

Income Statement