Common-Size Income Statement
Allergan Inc., common-size consolidated income statement
Based on: 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).
- Gross Profit and Cost Trends
- Gross profit as a percentage of product net sales displayed a consistent upward trend from 82.16% in 2010 to 86.6% in 2014. This improvement was driven primarily by a steady decrease in the cost of sales (excluding amortization), declining from -14.98% in 2010 to -11.82% in 2014, alongside a reduction in amortization of intangible assets from -2.86% to -1.58% over the same period.
- Revenue Composition
- Other revenues remained relatively stable, fluctuating modestly between 1.35% and 2.07% of product net sales without a clear trend, indicating a minor but consistent contribution to overall revenue.
- Operating Expenses
- Selling, General, and Administrative expenses as a proportion of product net sales had slight variability but generally decreased from -41.86% in 2010 to -39.81% in 2014, reflecting modest cost control or efficiency gains in these areas. Research and Development expenses remained relatively steady, oscillating narrowly near -16.7%, denoting consistent investment in R&D relative to sales.
- Exceptional Charges
- Legal settlements significantly impacted 2010 results, accounting for -12.64% of product net sales, with no subsequent occurrences recorded in later years, which contributed to improved operating margins post-2010. Impairment charges steadily decreased, starting at -7.66% in 2010 and nearly fading to zero by 2014. In contrast, restructuring charges remained low and stable until 2014, when a notable increase to -3.44% was observed, indicating a possible reorganization or cost restructuring effort in the final year of the data.
- Profitability Metrics
- Operating income showed a dramatic increase from 5.37% in 2010 to a peak of 29.19% in 2013, with a slight decline to 28.2% in 2014, demonstrating substantial operational profitability improvements over the period. Earnings from continuing operations before income taxes mirrored this trend. Net earnings attributable to Allergan Inc. followed a similar pattern, rising sharply from nearly zero in 2010 to 21.39% in 2014, though 2013 experienced a dip to 15.9%, likely influenced by discontinued operations and associated losses during that year.
- Financial Income and Expenses
- Interest income remained stable but low, at around 0.11%-0.15%. Interest expense showed a gradual decrease from -1.63% to -0.97%, suggesting reduced debt levels or lower interest rates over the period. Other net non-operating items and expenses were generally minor, except for a positive swing in "Other, net" to 0.59% in 2014, which helped improve non-operating income and overall profitability.
- Taxation and Earnings After Taxes
- The provision for income taxes increased from -3.44% in 2010 to a peak near -7.55% in 2012-2013, before declining to -6.41% in 2014. Despite the increased tax provision relative to sales during the mid-period, earnings from continuing operations increased consistently, reflecting underlying improvement in operating performance. Earnings from discontinued operations negatively impacted results significantly in 2013 but were negligible in other years.
- Equity and Minority Interest
- Net earnings attributable to noncontrolling interests showed a slight decline in negative values, remaining minimal throughout, indicating that the majority of earnings were attributable to Allergan Inc.