Selected Financial Data
Summarized Financial Information
Adjustments to Financial Statements: Proportionate Consolidation
Adjusted Financial Ratios: Proportionate Consolidation (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Assets (ROA)

GlaxoSmithKline PLC selected financial data

US$ in millions, translated from GBP £

	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010
Share of after tax profits of associates and joint ventures	51)	71)	47)	23)	125)
Associated	561)	510)	906)	825)	1,581)
Profitability Ratio
ROA (equity method investments only)¹	9.04%	13.96%	5.21%	2.82%	7.89%

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

¹ 2014 Calculation
ROA (equity method investments only) = 100 × Share of after tax profits of associates and joint ventures ÷ Associated
= 100 × 51 ÷ 561 = 9.04%

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Item	Description	The company
Share of after tax profits of associates and joint ventures	This item represents the entity proportionate share for the period of the net income (loss) of its investee (such as unconsolidated subsidiaries and joint ventures) to which the equity method of accounting is applied. Such amount typically reflects adjustments similar to those made in preparing consolidated statements, including adjustments to eliminate intercompany gains and losses, and to amortize, if appropriate, any difference between cost and underlying equity in net assets of the investee at the date of investment.	GlaxoSmithKline PLC share of after tax profits of associates and joint ventures increased from 2012 to 2013 but then slightly decreased from 2013 to 2014 not reaching 2012 level.
Associated	This item represents the carrying amount on the entity balance sheet of its investment in common stock of an equity method investee. This is not an indicator of the fair value of the investment, rather it is the initial cost adjusted for the entity share of earnings and losses of the investee, adjusted for any distributions (dividends) and other than temporary impairment losses recognized.	GlaxoSmithKline PLC associated decreased from 2012 to 2013 but then slightly increased from 2013 to 2014.
ROA (equity method investments only)	A profitability ratio calculated as share of after tax profits of associates and joint ventures divided by associated.	GlaxoSmithKline PLC ROA of equity method investments improved from 2012 to 2013 but then slightly deteriorated from 2013 to 2014 not reaching 2012 level.

Summarized financial information for GlaxoSmithKline PLC affiliates, subsidiaries, associates, and joint ventures

US$ in millions, translated from GBP £

	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010
Total assets	6,970)	3,994)	4,557)	3,917)	11,912)
Total liabilities	4,837)	2,554)	1,891)	1,666)	5,736)
Equity	2,133)	1,440)	2,665)	2,251)	6,175)
Total liabilities and equity	6,970)	3,994)	4,557)	3,917)	11,912)
Turnover	3,079)	2,461)	2,254)	2,666)	9,220)
Profit after taxation	529)	409)	374)	382)	1,039)

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

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Item	Description	The company
Equity	Amount of equity, excluding noncontrolling interest, attributable to the equity method investment of the entity.	Equity of GlaxoSmithKline PLC affiliates, subsidiaries, associates, and joint ventures decreased from 2012 to 2013 but then increased from 2013 to 2014 not reaching 2012 level.
Profit after taxation	The amount of net income (loss) reported by an equity method investment of the entity.	Profit after taxation of GlaxoSmithKline PLC affiliates, subsidiaries, associates, and joint ventures increased from 2012 to 2013 and from 2013 to 2014.

Recognition of GlaxoSmithKline PLC proportionate share of affiliates, subsidiaries, associates, and joint ventures assets and liabilities instead of net equity.

GlaxoSmithKline PLC, adjustments to financial statements

US$ in millions, translated from GBP £

	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010
Weighted average percentage interest in affiliates	26.29%	35.44%	33.98%	36.65%	25.60%
Adjustments to Total Assets
Total assets (as reported)	68,656)	69,748)	67,450)	63,828)	64,999)
Less: Associated (adjustment)	561)	510)	906)	825)	1,581)
Add: Total assets of affiliates (adjustment)	1,832)	1,416)	1,549)	1,435)	3,049)
Total assets (adjusted)	69,927)	70,653)	68,093)	64,439)	66,468)
Adjustment to Total Liabilities
Total liabilities (as reported)	60,319)	56,801)	56,477)	50,113)	50,000)
Add: Total liabilities of affiliates (adjustment)	1,271)	905)	643)	610)	1,468)
Total liabilities (adjusted)	61,591)	57,707)	57,120)	50,724)	51,468)
Adjustment to Turnover
Turnover (as reported)	38,855)	43,926)	42,984)	42,553)	43,700)
Add: Turnover of affiliates (adjustment)	809)	872)	766)	977)	2,360)
Turnover (adjusted)	39,664)	44,798)	43,750)	43,530)	46,060)

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

GlaxoSmithKline PLC, Financial Data: Reported vs. Adjusted

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GlaxoSmithKline PLC, adjusted financial ratios

	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010
Net Profit Margin
Reported net profit margin	11.98%	20.51%	17.27%	19.21%	5.76%
Adjusted net profit margin	11.74%	20.11%	16.97%	18.78%	5.46%
Total Asset Turnover
Reported total asset turnover	0.57	0.63	0.64	0.67	0.67
Adjusted total asset turnover	0.57	0.63	0.64	0.68	0.69
Financial Leverage
Reported financial leverage	9.54	6.01	7.14	5.11	4.75
Adjusted financial leverage	9.71	6.09	7.21	5.16	4.86
Return on Assets (ROA)
Reported ROA	6.78%	12.92%	11.01%	12.81%	3.87%
Adjusted ROA	6.66%	12.75%	10.90%	12.69%	3.78%

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as net income divided by adjusted revenue.	GlaxoSmithKline PLC adjusted net profit margin ratio improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014.
Adjusted total asset turnover	An activity ratio calculated as adjusted total revenue divided by adjusted total assets.	GlaxoSmithKline PLC adjusted total asset turnover ratio deteriorated from 2012 to 2013 and from 2013 to 2014.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	GlaxoSmithKline PLC adjusted financial leverage ratio decreased from 2012 to 2013 but then increased from 2013 to 2014 exceeding 2012 level.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	GlaxoSmithKline PLC adjusted ROA improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014.

GlaxoSmithKline PLC, Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010
As Reported
Selected Financial Data (US$ in millions, translated from GBP £)
Profit attributable to shareholders	4,655)	9,009)	7,424)	8,174)	2,515)
Turnover	38,855)	43,926)	42,984)	42,553)	43,700)
Profitability Ratio
Net profit margin¹	11.98%	20.51%	17.27%	19.21%	5.76%
Adjusted: from Equity Method to Proportionate Consolidation
Selected Financial Data (US$ in millions, translated from GBP £)
Profit attributable to shareholders	4,655)	9,009)	7,424)	8,174)	2,515)
Adjusted turnover	39,664)	44,798)	43,750)	43,530)	46,060)
Profitability Ratio
Adjusted net profit margin²	11.74%	20.11%	16.97%	18.78%	5.46%

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

2014 Calculations

¹ Net profit margin = 100 × Profit attributable to shareholders ÷ Turnover
= 100 × 4,655 ÷ 38,855 = 11.98%

² Adjusted net profit margin = 100 × Profit attributable to shareholders ÷ Adjusted turnover
= 100 × 4,655 ÷ 39,664 = 11.74%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as net income divided by adjusted revenue.	GlaxoSmithKline PLC adjusted net profit margin ratio improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014.

	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010
As Reported
Selected Financial Data (US$ in millions, translated from GBP £)
Turnover	38,855)	43,926)	42,984)	42,553)	43,700)
Total assets	68,656)	69,748)	67,450)	63,828)	64,999)
Activity Ratio
Total asset turnover¹	0.57	0.63	0.64	0.67	0.67
Adjusted: from Equity Method to Proportionate Consolidation
Selected Financial Data (US$ in millions, translated from GBP £)
Adjusted turnover	39,664)	44,798)	43,750)	43,530)	46,060)
Adjusted total assets	69,927)	70,653)	68,093)	64,439)	66,468)
Activity Ratio
Adjusted total asset turnover²	0.57	0.63	0.64	0.68	0.69

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

2014 Calculations

¹ Total asset turnover = Turnover ÷ Total assets
= 38,855 ÷ 68,656 = 0.57

² Adjusted total asset turnover = Adjusted turnover ÷ Adjusted total assets
= 39,664 ÷ 69,927 = 0.57

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as adjusted total revenue divided by adjusted total assets.	GlaxoSmithKline PLC adjusted total asset turnover ratio deteriorated from 2012 to 2013 and from 2013 to 2014.

	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010
As Reported
Selected Financial Data (US$ in millions, translated from GBP £)
Total assets	68,656)	69,748)	67,450)	63,828)	64,999)
Shareholders’ equity	7,200)	11,596)	9,449)	12,480)	13,679)
Solvency Ratio
Financial leverage¹	9.54	6.01	7.14	5.11	4.75
Adjusted: from Equity Method to Proportionate Consolidation
Selected Financial Data (US$ in millions, translated from GBP £)
Adjusted total assets	69,927)	70,653)	68,093)	64,439)	66,468)
Shareholders’ equity	7,200)	11,596)	9,449)	12,480)	13,679)
Solvency Ratio
Adjusted financial leverage²	9.71	6.09	7.21	5.16	4.86

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

2014 Calculations

¹ Financial leverage = Total assets ÷ Shareholders’ equity
= 68,656 ÷ 7,200 = 9.54

² Adjusted financial leverage = Adjusted total assets ÷ Shareholders’ equity
= 69,927 ÷ 7,200 = 9.71

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	GlaxoSmithKline PLC adjusted financial leverage ratio decreased from 2012 to 2013 but then increased from 2013 to 2014 exceeding 2012 level.

	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010
As Reported
Selected Financial Data (US$ in millions, translated from GBP £)
Profit attributable to shareholders	4,655)	9,009)	7,424)	8,174)	2,515)
Total assets	68,656)	69,748)	67,450)	63,828)	64,999)
Profitability Ratio
ROA¹	6.78%	12.92%	11.01%	12.81%	3.87%
Adjusted: from Equity Method to Proportionate Consolidation
Selected Financial Data (US$ in millions, translated from GBP £)
Profit attributable to shareholders	4,655)	9,009)	7,424)	8,174)	2,515)
Adjusted total assets	69,927)	70,653)	68,093)	64,439)	66,468)
Profitability Ratio
Adjusted ROA²	6.66%	12.75%	10.90%	12.69%	3.78%

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

2014 Calculations

¹ ROA = 100 × Profit attributable to shareholders ÷ Total assets
= 100 × 4,655 ÷ 68,656 = 6.78%

² Adjusted ROA = 100 × Profit attributable to shareholders ÷ Adjusted total assets
= 100 × 4,655 ÷ 69,927 = 6.66%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	GlaxoSmithKline PLC adjusted ROA improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014.

GlaxoSmithKline PLC (NYSE:GSK)

Analysis of Equity Method Investments

Selected Financial Data

Summarized Financial Information

Adjustments to Financial Statements: Proportionate Consolidation

GlaxoSmithKline PLC, Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Proportionate Consolidation (Summary)

GlaxoSmithKline PLC, Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Assets (ROA)