COST OF SALES - excluding inventory step-up and amortization
5,610
8,123
8,419
8,246
7,607
6,452
INVENTORY STEP-UP
-
-
-
63
352
107
AMORTIZATION OF PURCHASED INTANGIBLE ASSETS
614
1,000
1,136
1,136
668
497
COSTS RELATED TO REGULATORY ACTIONS TAKEN IN FACILITIES
28
75
43
128
170
-
ACCELERATED DEPRECIATION
2
12
9
-
-
-
EQUITY COMPENSATION****
8
6
-
-
-
-
GROSS PROFIT – GAAP
8,509
11,056
10,707
10,652
9,515
9,065
GROSS PROFIT – NON GAAP*
9,161
12,149
11,895
12,071
1,283
9,669
RESEARCH AND DEVELOPMENT EXPENSES - net
1,041
1,395
1,422
1,283
1,080
933
PURCHASE OF RESEARCH AND DEVELOPMENT IN PROCESS
24
-
5
73
15
18
COSTS ASSOCIATED WITH CANCELLATION OF R&D PROJECTS
-
79
-
-
-
-
SELLING AND MARKETING EXPENSES - net
2,520
3,767
4,036
3,835
3,440
2,938
BRANDED PRESCRIPTION DRUG FEE
-
40
-
-
-
-
AMORTIZATION OF PURCHASED INTANGIBLE ASSETS
23
36
44
44
38
30
GENERAL AND ADMINISTRATIVE EXPENSES
907
1,177
1,239
1,238
932
865
EQUITY COMPENSATION****
74
72
-
-
-
-
LOSS CONTINGENCIES, IMPAIRMENTS, SETTLEMENTS, AND OTHER
1,499
539
2,312
1,974
901
410
OPERATING INCOME (LOSS) – GAAP
2,421
3,951
1,649
2,205
3,109
3,871
OPERATING INCOME – NON GAAP*
4,693
5,810
5,198
5,715
5,253
4,933
FINANCIAL EXPENSES (INCOME) - net (mainly recurring interest and exchange gains(losses))
155
306
289
354
153
154
FINANCIAL EXPENSES (INCOME) - net (mainly impairment and other special items)
755
7
110
32
-
71
INCOME (LOSS) BEFORE INCOME TAXES – GAAP
1,491
3,638
1,250
1,819
2,956
3,646
INCOME TAXES
976
1,099
630
661
592
613
TAX EFFECT of items excluded from GAAP results
(591)
(508)
(673)
(798)
(465)
(330)
1,106
3,047
1,293
1,956
2,829
3,363
SHARE IN PROFITS (LOSSES) OF ASSOCIATED COMPANIES – net
(7)
(5)
(40)
(46)
(61)
(24)
NET (INCOME) LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS
(11)
13
16
17
(9)
(8)
MINORITY INTEREST CHANGES RELATED TO IMPAIRMENTS OF CO-OWNED ASSETS
16
-
-
36
-
-
NET INCOME (LOSS) ATTRIBUTABLE TO TEVA – GAAP
1,088
3,055
1,269
1,963
2,759
3,331
NET INCOME (LOSS) ATTRIBUTABLE TO TEVA– NON GAAP*
3,560
4,413
4,255
4,671
4,438
4,134
EARNINGS (LOSS) PER SHARE ATTRIBUTABLE TO TEVA– GAAP:
Diluted ($)
1.26
3.56
1.49
2.25
3.09
3.67
WEIGHTED AVERAGE NUMBER OF SHARES (IN MILLIONS) – GAAP:
Diluted
860
858
850
873
893
921
EARNINGS PER SHARE ATTRIBUTABLE TO TEVA– NON GAAP:
Diluted ($)
4.14
5.14
5.01
5.35
4.97
4.54
WEIGHTED AVERAGE NUMBER OF SHARES (IN MILLIONS) – NON GAAP:
Diluted
860
858
850
873
893
921
* Non GAAP results exclude the following items, as applicable - inventory step up, amortization of purchased intangible assets, costs related to regulatory actions taken in facilities, purchase of R&D in process, legal settlements and reserves, acquisition restructuring and other expenses and impairment, impairment of financial assets and other special items and their related tax effect
** Non GAAP results exclude the following items, as applicable - inventory step up, amortization of purchased intangible assets, costs related to regulatory actions taken in facilities, equity compensation, purchase of R&D in process, legal settlements and reserves, acquisition restructuring and other expenses and impairment, impairment of financial assets and other special items and their related tax effect
*** Non-controlling interests reclassification
**** Beginning in 2015, expenses related to our equity compensation are excluded from our non-GAAP results. The data presented have been conformed to reflect the exclusion of equity compensation expenses for all periods.
The table below reconciles Teva's non GAAP results as reported prior to 2009 with the Company's non GAAP presentation adopted in Q1'09. Prior to 2009, Teva's non GAAP results included the impact of amortization of intangible assets. Non GAAP results prior to 2009 excluded, as applicable, inventory step up, acquisition of R&D in process, impairment of intangible assets and legal settlements and impairment of financial assets and their related tax effect.
Amortization included in cost of sales
152
150
129
Amortization included S&M
28
71
61
Tax effect on amortization
(36)
(50)
(48)
COST OF SALES - as reported
5,112
4,531
4,054
SELLING AND MARKETING - as reported
1,842
1,264
1,024
TAX EFFECT ON NON-GAAP ITEMS - as reported
(66)
0
(173)
EPS non GAAP as reported (including amortization)
Diluted ($)
2.86
2.36
2.29
EPS effect of amortization
0.17
0.21
0.17
2015
2014
2013
2012
2011
2010
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
928
2,226
1,038
2,879
1,096
1,248
Accounts receivable
5,275
5,408
5,338
5,572
6,213
5,476
Inventories
4,092
4,371
5,033
5,502
5,012
3,866
Deferred taxes and other current assets
2,205
2,391
2,291
2,402
2,132
1,452
TOTAL CURRENT ASSETS
12,500
14,396
13,720
16,355
14,453
12,042
Other non-current assets
2,469
1,569
1,696
1,338
1,133
770
PROPERTY, PLANT AND EQUIPMENT, net
6,422
6,535
6,635
6,315
5,947
4,357
IDENTIFIABLE INTANGIBLE ASSETS, net
8,060
5,512
6,476
7,745
10,316
5,751
GOODWILL
19,174
18,408
18,981
18,856
18,293
15,232
TOTAL ASSETS
48,625
46,420
47,508
50,609
50,142
38,152
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Short-term debt and current maturities of long term liabilities
2,148
1,761
1,804
3,006
4,280
2,771
Sales reserves and allowances
6,759
5,849
4,918
4,934
4,428
3,403
Accounts payable and accruals
2,964
3,171
3,317
3,376
3,572
2,467
Other current liabilities
1,107
1,508
1,926
1,572
1,396
1,053
TOTAL CURRENT LIABILITIES
12,978
12,289
11,965
12,888
13,676
9,694
LONG-TERM LIABILITIES:
Deferred income taxes
1,909
1,101
1,247
1,849
2,610
1,348
Other taxes and long term payables
1,322
1,109
1,273
1,293
1,277
998
Senior notes and loans
9,516
8,566
10,387
11,712
10,236
4,097
Convertible senior debentures - long term
-
-
-
-
-
13
TOTAL LONG-TERM LIABILITIES
12,747
10,776
12,907
14,854
14,123
6,456
EQUITY:
Teva shareholders' equity
23,739
23,313
22,565
22,768
22,195
21,947
Non-controlling interest
161
42
71
99
148
**55
TOTAL EQUITY
22,900
23,355
22,636
22,867
22,343
22,002
TOTAL LIABILITIES & EQUITY
48,625
46,420
47,508
50,609
50,142
38,152
* After giving retroactive effect to the adoption of an accounting pronouncement which requires issuers to account separately for the liability and equity components of convertible debt instruments that may be settled in cash (including partial cash settlement)
