Income Statement
Difficulty: Beginner
The income statement presents information on the financial results of a company's 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.
Abbott Laboratories, Consolidated Income Statement
USD $ in millions
| 12 months ended | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Net sales | 27,390 | 20,853 | 20,405 | 20,247 | 21,848 | ||||||
| Cost of products sold, excluding amortization of intangible assets | (12,337) | (9,024) | (8,747) | (9,218) | (10,040) | ||||||
| Amortization of intangible assets | (1,975) | (550) | (601) | (555) | (791) | ||||||
| Gross profit | 13,078 | 11,279 | 11,057 | 10,474 | 11,017 | ||||||
| Research and development | (2,235) | (1,422) | (1,405) | (1,345) | (1,452) | ||||||
| Selling, general and administrative | (9,117) | (6,672) | (6,785) | (6,530) | (6,936) | ||||||
| Operating earnings | 1,726 | 3,185 | 2,867 | 2,599 | 2,629 | ||||||
| Interest expense | (904) | (431) | (163) | (150) | (157) | ||||||
| Interest income | 124 | 99 | 105 | 77 | 67 | ||||||
| Net loss on extinguishment of debt | – | – | – | (18) | – | ||||||
| Net foreign exchange gain (loss) | 34 | (495) | 93 | 24 | (50) | ||||||
| Other income (expense), net | 1,251 | (945) | 281 | (14) | 32 | ||||||
| Earnings from continuing operations before taxes | 2,231 | 1,413 | 3,183 | 2,518 | 2,521 | ||||||
| Taxes on earnings from continuing operations | (1,878) | (350) | (577) | (797) | (138) | ||||||
| Earnings from continuing operations | 353 | 1,063 | 2,606 | 1,721 | 2,383 | ||||||
| Earnings from discontinued operations, net of taxes | 124 | 321 | 65 | 563 | 193 | ||||||
| Gain on sale of discontinued operations, net of taxes | – | 16 | 1,752 | – | – | ||||||
| Net earnings from discontinued operations, net of taxes | 124 | 337 | 1,817 | 563 | 193 | ||||||
| Net earnings | 477 | 1,400 | 4,423 | 2,284 | 2,576 |
| Item | Description | The company |
|---|---|---|
| Net sales | Aggregate revenue recognized during the period (derived from goods sold, services rendered, insurance premiums, or other activities that constitute an entity's earning process). For financial services companies, also includes investment and interest income, and sales and trading gains. | Abbott Laboratories's net sales increased from 2015 to 2016 and from 2016 to 2017. |
| Operating earnings | The net result for the period of deducting operating expenses from operating revenues. | Abbott Laboratories's operating earnings increased from 2015 to 2016 but then declined significantly from 2016 to 2017. |
| Earnings from continuing operations before taxes | Sum of operating profit and nonoperating income (expense) before income (loss) from equity method investments, income taxes, extraordinary items, cumulative effects of changes in accounting principles, and noncontrolling interest. | Abbott Laboratories's earnings from continuing operations before taxes declined from 2015 to 2016 but then slightly increased from 2016 to 2017. |
| Earnings from continuing operations | This represents the income or loss from continuing operations attributable to the economic entity which may also be defined as revenue less expenses and taxes from ongoing operations before extraordinary items, cumulative effects of changes in accounting principles, and noncontrolling interest. | Abbott Laboratories's earnings from continuing operations declined from 2015 to 2016 and from 2016 to 2017. |
| Net earnings | The portion of consolidated profit or loss for the period, net of income taxes, which is attributable to the parent. If the entity does not present consolidated financial statements, the amount of profit or loss for the period, net of income taxes. | Abbott Laboratories's net earnings declined from 2015 to 2016 and from 2016 to 2017. |