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.

GlaxoSmithKline PLC, consolidated income statement

US$ in millions, translated from GBP £

12 months ended:	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010
Turnover	38,855)	43,926)	42,984)	42,553)	43,700)
Cost of sales	(12,368)	(14,228)	(12,838)	(11,392)	(11,685)
Gross profit	26,487)	29,698)	30,146)	31,161)	32,015)
Selling, general and administration	(13,927)	(14,054)	(14,212)	(13,713)	(20,091)
Research and development	(5,827)	(6,501)	(6,453)	(6,229)	(6,860)
Royalty income	524)	641)	498)	480)	456)
Impairment of equity investments	(42)	(116)	(42)	(121)	(100)
Disposal of equity investments	262)	63)	31)	16)	26)
Disposal of businesses and assets	412)	2,342)	1,075)	500)	349)
Gain on settlement of pre-existing collaborations on acquisition of HGS	—)	—)	379)	—)	—)
Gain on acquisition of the Shionogi-ViiV Healthcare joint venture	—)	—)	568)	—)	—)
Fair value remeasurements on contingent consideration recognised in business combinations	(1,300)	(416)	(21)	—)	—)
Fair value adjustments on derivative financial instruments	(529)	20)	5)	16)	(9)
Other income (expense)	15)	(30)	49)	22)	37)
Other operating income	(1,182)	1,863)	2,043)	432)	303)
Operating profit	6,075)	11,647)	12,021)	12,130)	5,823)
Interest income	111)	98)	119)	132)	159)
Realised gains on liquid investments	—)	—)	7)	8)	—)
Fair value adjustments on derivatives at fair value through profit or loss	3)	3)	3)	—)	20)
Finance income	115)	101)	128)	140)	179)
Interest expense	(1,162)	(1,203)	(1,212)	(1,156)	(1,181)
Fair value hedges	8)	(2)	(2)	(2)	(2)
Fair value movements on other derivatives at fair value through profit or loss	(25)	(3)	(21)	(23)	(26)
Reclassification of cash flow hedge from other comprehensive income	—)	—)	—)	—)	(5)
Unwinding of discounts on provisions	(25)	(23)	(24)	(19)	(28)
Movements on amounts owed to non-controlling interests	—)	(3)	(16)	(11)	—)
Other finance expense	(24)	(36)	(39)	(31)	(38)
Finance costs	(1,228)	(1,271)	(1,314)	(1,241)	(1,279)
Profit on disposal of interest in associates	—)	467)	—)	909)	12)
Share of after tax profits of associates and joint ventures	51)	71)	47)	23)	125)
Profit before taxation	5,013)	11,016)	10,883)	11,961)	4,859)
Taxation	(231)	(1,689)	(3,168)	(3,480)	(2,007)
Profit after taxation for the year	4,781)	9,327)	7,715)	8,480)	2,852)
Profit attributable to non-controlling interests	(127)	(318)	(291)	(306)	(337)
Profit attributable to shareholders	4,655)	9,009)	7,424)	8,174)	2,515)

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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Income statement item	Description	The company
Turnover	Amount, including tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value-added and excise.	GlaxoSmithKline PLC turnover increased from 2012 to 2013 but then decreased significantly from 2013 to 2014.
Operating profit	The net result for the period of deducting operating expenses from operating revenues.	GlaxoSmithKline PLC operating profit decreased from 2012 to 2013 and from 2013 to 2014.
Profit before taxation	Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.	GlaxoSmithKline PLC profit before taxation increased from 2012 to 2013 but then decreased significantly from 2013 to 2014.
Profit attributable to shareholders	The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.	GlaxoSmithKline PLC profit attributable to shareholders increased from 2012 to 2013 but then decreased significantly from 2013 to 2014.

GlaxoSmithKline PLC (NYSE:GSK)

Income Statement