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.

Allergan Inc., consolidated income statement

US$ in thousands

12 months ended:	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010
Product net sales	7,126,100)	6,197,500)	5,708,800)	5,347,100)	4,819,600)
Cost of sales, excludes amortization of intangible assets	(842,400)	(795,800)	(775,500)	(748,700)	(722,000)
Amortization of intangible assets	(112,400)	(116,700)	(131,300)	(127,600)	(138,000)
Gross profit	6,171,300)	5,285,000)	4,802,000)	4,470,800)	3,959,600)
Other revenues	111,800)	102,900)	97,300)	72,000)	99,800)
Selling, general and administrative	(2,837,200)	(2,519,400)	(2,268,400)	(2,246,600)	(2,017,600)
Research and development	(1,191,600)	(1,042,300)	(989,600)	(902,800)	(804,600)
Legal settlement	—)	—)	—)	—)	(609,200)
Impairment of intangible assets and related costs	—)	(11,400)	(22,300)	(23,700)	(369,100)
Restructuring charges	(245,000)	(5,500)	(5,700)	(4,600)	(300)
Operating income	2,009,300)	1,809,300)	1,613,300)	1,365,100)	258,600)
Interest income	7,700)	6,800)	6,700)	6,900)	7,300)
Interest expense	(69,400)	(75,000)	(63,600)	(71,800)	(78,700)
Other, net	41,700)	(10,300)	(23,100)	(500)	(16,400)
Non-operating income (expense)	(20,000)	(78,500)	(80,000)	(65,400)	(87,800)
Earnings from continuing operations before income taxes	1,989,300)	1,730,800)	1,533,300)	1,299,700)	170,800)
Provision for income taxes	(456,700)	(458,300)	(430,800)	(361,600)	(165,900)
Earnings from continuing operations	1,532,600)	1,272,500)	1,102,500)	938,100)	4,900)
Earnings from discontinued operations, net of applicable income tax	—)	14,100)	—)	—)	—)
Loss on sale of discontinued operations, net of applicable income tax	(3,800)	(297,900)	—)	—)	—)
Discontinued operations	(3,800)	(283,800)	—)	—)	—)
Net earnings	1,528,800)	988,700)	1,102,500)	938,100)	4,900)
Net earnings attributable to noncontrolling interest	(4,600)	(3,600)	(3,700)	(3,600)	(4,300)
Net earnings attributable to Allergan, Inc.	1,524,200)	985,100)	1,098,800)	934,500)	600)

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).

Product Net Sales: There is a consistent upward trend in product net sales from 2010 through 2014, rising from approximately $4.82 billion to $7.13 billion. This steady increase indicates growing market demand or successful sales strategies over the period.
Cost of Sales: Costs associated with sales, excluding amortization of intangible assets, show a gradual increase each year, rising from about $722 million in 2010 to $842 million in 2014. The growth in costs aligns proportionally with the growth in sales.
Amortization of Intangible Assets: Amortization expenses decline slightly over the years, decreasing from $138 million in 2010 to $112 million in 2014, suggesting a reduction in amortizable intangible assets or changes in amortization policies.
Gross Profit: Gross profit exhibits a strong upward trajectory, increasing from around $3.96 billion in 2010 to $6.17 billion in 2014. This reflects improved profitability of core operations, driven by higher sales and controlled cost increases.
Other Revenues: Other revenues fluctuate within a range of approximately $72 million to $112 million, showing no clear trend but maintaining a relatively stable contribution to total revenues.
Selling, General and Administrative Expenses: SG&A expenses steadily rise from about $2.02 billion in 2010 to $2.84 billion in 2014, indicating increased operational or marketing expenditures, likely supporting the sales growth.
Research and Development Expenses: R&D spending consistently increases over the years, from approximately $805 million in 2010 to $1.19 billion in 2014, highlighting ongoing investment in innovation and product development.
Legal Settlement: A substantial legal settlement expense of $609 million is recorded in 2010, with no subsequent amounts in following years, demonstrating a significant one-time charge impacting that year's financials.
Impairment of Intangible Assets and Related Costs: Expenses related to impairment decrease markedly from $369 million in 2010 to near negligible levels by 2013, reflecting possibly improved asset valuations or fewer write-downs.
Restructuring Charges: Restructuring costs are minimal between 2010 and 2013 but surge to $245 million in 2014, indicating a significant organizational change or cost-cutting initiative in the latter year.
Operating Income: Operating income displays a positive growth trend, increasing from $259 million in 2010 to $2.01 billion in 2014, signifying improved operational efficiency and profitability over time.
Interest Income and Expense: Interest income remains relatively flat around $7 million annually, while interest expense declines slightly from $79 million in 2010 to $69 million in 2014, contributing to a modest improvement in net financing costs.
Other Net Non-operating Items: Other net items fluctuate with occasional negative values but improve to a positive $42 million in 2014, providing some non-operating income support in that year.
Non-operating Income (Expense): Non-operating expenses recur each year but diminish from $88 million in 2010 to $20 million in 2014, reflecting reduced non-core costs or improved management of ancillary activities.
Earnings Before Income Taxes: Income before taxes shows a strong upward pattern, rising from $171 million in 2010 to nearly $1.99 billion in 2014, driven by the improvements in operating results and reduced non-operating losses.
Provision for Income Taxes: Income tax expenses increase from $166 million in 2010 to over $456 million in 2014, reflecting higher taxable income.
Earnings from Continuing Operations: Profit from continuing operations grows markedly from a minimal $5 million in 2010 to $1.53 billion in 2014, indicating robust and sustained operational profitability.
Discontinued Operations: Discontinued operations appear with a significant loss of $284 million in 2013 and a smaller loss of $4 million in 2014, negatively impacting net earnings in those periods.
Net Earnings: Net earnings rise substantially from a marginal $5 million in 2010 to $1.53 billion in 2014, despite the large non-recurring legal and restructuring charges earlier in the period, showing a strong rebound and growth in profitability.
Net Earnings Attributable to Noncontrolling Interest: Losses attributable to noncontrolling interests remain small and stable, around $3.6 million to $4.6 million annually, having limited effect on overall net income.
Net Earnings Attributable to Allergan, Inc.: Attributable net earnings trend upward significantly from $0.6 million in 2010 to $1.52 billion in 2014, mirroring the overall net income growth and indicating enhanced value generation for shareholders.

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Allergan Inc. (NYSE:AGN.)

Income Statement