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.

Edwards Lifesciences Corp., consolidated income statement

US$ in thousands

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Net sales	5,232,500)	4,386,300)	4,348,000)	3,722,800)	3,435,300)
Cost of sales	(1,248,900)	(1,080,600)	(1,114,400)	(939,400)	(875,300)
Gross profit	3,983,600)	3,305,700)	3,233,600)	2,783,400)	2,560,000)
Selling, general, and administrative expenses	(1,493,700)	(1,228,400)	(1,242,200)	(1,088,500)	(984,700)
Research and development expenses	(903,100)	(760,700)	(752,700)	(622,200)	(552,600)
Intellectual property litigation income (expenses), net	(20,600)	(405,400)	(33,400)	(214,000)	73,300)
Change in fair value of contingent consideration liabilities, net	124,100)	(13,600)	6,100)	5,700)	9,900)
Special charges	—)	—)	(64,600)	(116,200)	(9,700)
Other operating expenses	—)	—)	—)	—)	(700)
Operating income	1,690,300)	897,600)	1,146,800)	748,200)	1,095,500)
Interest expense	(18,400)	(15,800)	(20,700)	(29,900)	(23,200)
Interest income	17,400)	23,400)	32,200)	32,000)	20,300)
Special gains (charges)	—)	—)	—)	7,100)	(50,200)
Foreign exchange gains (losses), net	5,000)	12,300)	5,900)	6,700)	(5,400)
Gain (loss) on investments	5,800)	600)	500)	(1,700)	(2,700)
Non-service cost components of net periodic pension benefit credit (cost)	(300)	(400)	(200)	100)	—)
Other	2,200)	(1,000)	2,000)	(1,100)	600)
Other income (expense), net	12,700)	11,500)	8,200)	4,000)	(7,500)
Income before provision for income taxes	1,702,000)	916,700)	1,166,500)	761,400)	1,034,900)
Provision for income taxes	(198,900)	(93,300)	(119,600)	(39,200)	(451,300)
Net income	1,503,100)	823,400)	1,046,900)	722,200)	583,600)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Revenue and gross profitability demonstrate a consistent upward trajectory from 2017 to 2021. Net sales increased from 3,435,300 thousand US dollars to 5,232,500 thousand US dollars, representing a sustained growth pattern with a minor deceleration observed between 2019 and 2020. Gross profit margins remained robust throughout the period, scaling proportionally with revenue to reach 3,983,600 thousand US dollars by the end of 2021.

Operational Expenditure Trends: There is a steady increase in both Selling, General, and Administrative (SG&A) expenses and Research and Development (R&D) spending. SG&A expenses rose from 984,700 thousand US dollars in 2017 to 1,493,700 thousand US dollars in 2021. Similarly, R&D expenditures grew from 552,600 thousand US dollars to 903,100 thousand US dollars over the same timeframe, indicating a strategic commitment to product innovation and market expansion.
Operating Income Volatility: Operating income exhibited significant fluctuations, which do not align linearly with revenue growth. Notable declines occurred in 2018 and 2020, coinciding with substantial outflows related to intellectual property litigation and special charges. Specifically, 2020 saw a significant litigation expense of 405,400 thousand US dollars, contributing to a dip in operating income to 897,600 thousand US dollars. However, a strong recovery is evident in 2021, where operating income peaked at 1,690,300 thousand US dollars.
Non-Operating Items and Financial Position: Interest income and interest expense remained relatively balanced, with interest income often offsetting interest expenses, thereby minimizing the impact of debt servicing on the bottom line. Foreign exchange gains and investment gains contributed marginally but positively to the net results in the latter years of the period.
Net Income and Tax Impact: Net income grew from 583,600 thousand US dollars in 2017 to 1,503,100 thousand US dollars in 2021. This growth was influenced by varying tax provisions, which showed extreme volatility, dropping from 451,300 thousand US dollars in 2017 to as low as 39,200 thousand US dollars in 2018, before stabilizing at 198,900 thousand US dollars in 2021.

The overall financial profile indicates a company with strong core revenue growth and high gross margins, though net operational efficiency has been intermittently impacted by significant legal and special charges. The sharp increase in net income in 2021 suggests a period of operational stabilization and the successful scaling of sales relative to fixed and variable costs.

AI Ask an analyst for more

Download chart

Edwards Lifesciences Corp. (NYSE:EW)

Income Statement