EX-99.2 4 y93521exv99w2.txt SUPPLEMENTAL FINANCIAL DATA . . . SCHERING-PLOUGH CORPORATION STATEMENTS OF CONSOLIDATED OPERATIONS (DOLLARS IN MILLIONS, EXCEPT EPS)
--------------------------------------------------------------------- 2003 2002 --------------------------------------------------------------------- 1st 2nd 6 3rd 9 4th 1st Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year Qtr. $ $ $ $ $ $ $ $ --------------------------------------------------------------------- Net Sales * 2,082 2,308 4,389 1,998 6,386 1,948 8,334 2,556 Cost of Sales 658 784 1,442 652 2,094 739 2,833 579 --------------------------------------------------------------------- Gross Margin 1,424 1,524 2,947 1,346 4,292 1,209 5,501 1,977 Total SG&A 843 938 1,780 873 2,653 821 3,474 919 Research & Development * 322 369 691 382 1,074 395 1,469 305 Equity (Income)/Loss from Cholesterol Joint Venture * 30 (26) 4 (24) (21) (33) (54) - Other, Net* 13 (4) 8 41 49 10 59 (26) Special Charges ** - 20 20 350 370 229 599 - --------------------------------------------------------------------- (Loss)/Income Before Income Taxes 216 227 444 (276) 167 (213) (46) 779 Income Taxes (Benefit)/Expense 43 45 89 (11) 77 (32) 46 179 --------------------------------------------------------------------- Net (Loss)/Income 173 182 355 (265) 90 (181) (92) 600 ===================================================================== Diluted (Loss)/Earnings per Common Share 0.12 0.12 0.24 (0.18) 0.06 (0.12) (0.06) 0.41 ===================================================================== Avg. Shares Outstanding- Diluted 1,470 1,471 1,471 1,469 1,470 1,470 1,469 1,471 Actual Shares Outstanding 1,469 1,469 1,469 1,469 1,469 1,471 1,471 1,466 ---------------------------------------------------------------------
----------------------------------------------------------------------- 2002 ----------------------------------------------------------------------- 2nd 6 3rd 9 4th 4th Qtr. 12 Mos. Qtr. Mos. Qtr. Mos. Qtr. Year vs vs $ $ $ $ $ $ 4th Qtr. 12 Mos. ----------------------------------------------------------------------- Net Sales * 2,833 5,389 2,421 7,810 2,370 10,180 (18%) (18%) Cost of Sales 675 1,254 644 1,898 607 2,505 22% 13% ----------------------------------------------------------------------- Gross Margin 2,158 4,135 1,777 5,912 1,763 7,675 (31%) (28%) Total SG&A 995 1,914 870 2,784 897 3,681 (9%) (6%) Research & Development * 357 662 354 1,017 409 1,425 (3%) 3% Equity (Income)/Loss from Cholesterol Joint Venture * - - - - - - N/M N/M Other, Net* (16) (41) (4) (47) (98) (144) N/M N/M Special Charges ** - - - - 150 150 53% N/M ----------------------------------------------------------------------- (Loss)/Income Before Income Taxes 822 1,600 557 2,158 405 2,563 N/M N/M Income Taxes (Benefit)/Expense 189 368 128 496 92 589 N/M (92%) ----------------------------------------------------------------------- Net (Loss)/Income 633 1,232 429 1,662 313 1,974 N/M N/M ======================================================================= Diluted (Loss)/Earnings per Common Share 0.43 0.84 0.29 1.13 0.21 1.34 N/M N/M ======================================================================= Avg. Shares Outstanding- Diluted 1,470 1,470 1,469 1,470 1,469 1,470 Actual Shares Outstanding 1,466 1,466 1,467 1,467 1,468 1,468 -----------------------------------------------------------------------
--------------------------------------------------------------------------------------- 2003 2002 --------------------------------------------------------------------------------------- 1st 2nd 6 3rd 9 4th 1st 2nd Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year Qtr. Qtr. --------------------------------------------------------------------------------------- Ratios To Net Sales Net Sales 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Cost of Sales 31.6% 34.0% 32.9% 32.6% 32.8% 37.9% 34.0% 22.6% 23.8% Gross Margin 68.4% 66.0% 67.1% 67.4% 67.2% 62.1% 66.0% 77.4% 76.2% Total SG&A 40.5% 40.6% 40.6% 43.7% 41.5% 42.1% 41.7% 35.9% 35.1% Research & Development 15.5% 16.0% 15.8% 19.1% 16.8% 20.3% 17.6% 11.9% 12.6% (Loss)/Income Before Income Taxes 10.4% 9.8% 10.1% (13.8%) 2.6% (11.0%) (0.6%) 30.5% 29.0% Income Taxes (Benefit)/Expense 2.1% 2.0% 2.0% (0.6%) 1.2% (1.6%) 0.5% 7.0% 6.7% Net (Loss)/Income 8.3% 7.9% 8.1% (13.3%) 1.4% (9.3%) (1.1%) 23.5% 22.3% ---------------------------------------------------------------------------------------
---------------------------------------------- 2002 ---------------------------------------------- 6 3rd 9 4th Mos. Qtr. Mos. Qtr. Year ---------------------------------------------- Ratios To Net Sales Net Sales 100.0% 100.0% 100.0% 100.0% 100.0% Cost of Sales 23.3% 26.6% 24.3% 25.6% 24.6% Gross Margin 76.7% 73.4% 75.7% 74.4% 75.4% Total SG&A 35.5% 35.9% 35.6% 37.9% 36.2% Research & Development 12.3% 14.6% 13.0% 17.2% 14.0% (Loss)/Income Before Income Taxes 29.7% 23.0% 27.6% 17.1% 25.2% Income Taxes (Benefit)/Expense 6.8% 5.3% 6.4% 3.9% 5.8% Net (Loss)/Income 22.9% 17.7% 21.3% 13.2% 19.4% ----------------------------------------------
* Effective for the full year 2003, the company is presenting its collaboration with Merck under the equity method of accounting. Under that method, the company records its share of the operating profits less its share of research and development costs in "Equity (Income)/Loss from Cholesterol Joint Venture." Included in this line for the full year 2003 are the company's share of the operating profits of $113 million and a $20 million milestone payment, less its share of research and development costs of $79 million. It should be noted that the company incurs substantial costs, such as selling costs, that are not reflected in the equity income from the cholesterol joint venture and are borne by the overall cost structure of Schering-Plough. ** Special Charges for the fourth quarter of 2003 included $179 million of employee termination costs, primarily related to the VERP in the United States, as well as $50 million of asset impairment charges related to certain fixed and intangible assets. Special charges for the full year 2003 also included the $350 million provision to increase litigation reserves recorded in the third quarter, as well as $20 million of asset impairment charges related to manufacturing facility assets recorded in the second quarter. Special Charges in 2002 included a $150 million provision to increase litigation reserves. All figures rounded. Totals may not add due to rounding. N/M - not a meaningful percentage. 1 SCHERING-PLOUGH CORPORATION ANTI-INFECTIVE/ANTICANCER PRODUCT SALES (DOLLARS IN MILLIONS)
----------------------------------------------------------------------------------------------------- 2003 2002 ----------------------------------------------------------------------------------------------------- 1st 2nd 6 3rd 9 4th 1st 2nd 6 3rd Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year Qtr. Qtr. Mos. Qtr. $ $ $ $ $ $ $ $ $ $ $ ----------------------------------------------------------------------------------------------------- U.S.: 303 349 652 215 867 171 1,039 411 420 830 472 Intron Franchise* 279 302 581 171 752 132 884 342 377 719 426 Temodar 26 48 73 47 120 39 159 34 47 80 42 Other (2) (1) (2) (3) (5) - (4) 35 (4) 31 4 INTERNATIONAL: 477 521 998 506 1,505 555 2,059 387 471 858 485 Caelyx 22 26 49 30 78 32 111 14 17 31 19 Intron Franchise* 237 266 503 227 730 236 966 215 282 497 277 Remicade 114 126 240 142 382 159 540 60 76 137 92 Temodar 34 40 73 44 117 48 165 25 28 53 34 Other 70 63 133 63 198 80 277 73 68 140 63 TOTAL: 781 870 1,650 722 2,372 726 3,098 797 891 1,688 957 Caelyx 22 26 49 30 78 32 111 14 17 31 19 Intron Franchise* 516 569 1,084 398 1,482 369 1,851 556 659 1,216 703 Remicade 114 126 240 142 382 159 540 60 76 137 92 Temodar 59 87 146 90 237 87 324 59 74 133 76 Other 70 62 131 62 193 79 272 108 65 171 67 -----------------------------------------------------------------------------------------------------
------------------------------------------------- 2002 ------------------------------------------------- 9 4th 4th Qtr. 12 Mos. Mos. Qtr. Year vs vs $ $ $ 4th Qtr. 12 Mos. ------------------------------------------------- U.S.: 1,302 580 1,881 (70%) (45%) Intron Franchise* 1,145 544 1,689 (76%) (48%) Temodar 122 36 158 10% 1% Other 35 - 34 N/M N/M INTERNATIONAL: 1,343 508 1,851 9% 11% Caelyx 51 21 71 57% 55% Intron Franchise* 774 273 1,047 (13%) (8%) Remicade 228 109 337 46% 60% Temodar 87 33 120 44% 37% Other 203 72 276 11% - TOTAL: 2,645 1,088 3,733 (33%) (17%) Caelyx 51 21 71 57% 55% Intron Franchise* 1,919 817 2,736 (55%) (32%) Remicade 228 109 337 46% 60% Temodar 209 69 278 26% 16% Other 238 72 311 10% (13%) -------------------------------------------------
* The INTRON franchise consists of INTRON A, PEG-INTRON and REBETOL. Notes: All figures rounded. Totals may not add due to rounding. N/M - not a meaningful percentage. 2 SCHERING-PLOUGH CORPORATION ALLERGY/RESPIRATORY PRODUCT SALES (DOLLARS IN MILLIONS)
-------------------------------------------------------------------------------------------- 2003 2002 -------------------------------------------------------------------------------------------- 1st 2nd 6 3rd 9 4th 1st 2nd Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year Qtr. Qtr. $ $ $ $ $ $ $ $ $ -------------------------------------------------------------------------------------------- U.S: 213 332 545 231 775 230 1,005 805 899 Clarinex 133 144 277 128 405 93 498 70 137 Claritin Rx Franchise* 16 13 29 (3) 26 - 25 565 677 Nasonex 34 115 149 74 223 78 301 101 54 Proventil 17 42 59 23 82 43 125 59 30 Other 13 18 31 9 39 16 56 10 1 INTERNATIONAL: 240 289 530 211 741 257 998 209 249 Clarinex 41 75 116 41 157 40 196 14 36 Claritin Rx Franchise 93 99 192 72 264 81 345 94 115 Nasonex 44 60 105 39 144 55 199 37 47 Other 62 55 117 59 176 81 258 64 51 TOTAL: 453 621 1,074 442 1,516 487 2,003 1,014 1,147 Clarinex 173 219 392 169 561 133 694 85 173 Claritin Rx Franchise* 109 112 221 68 289 81 370 659 792 Nasonex 79 175 254 114 368 132 500 138 101 Proventil 17 42 59 23 82 43 125 59 30 Other 75 73 148 68 216 98 314 73 51 --------------------------------------------------------------------------------------------
--------------------------------------------------------------------- 2002 --------------------------------------------------------------------- 6 3rd 9 4th 4th Qtr. 12 Mos. Mos. Qtr. Mos. Qtr. Year vs vs $ $ $ $ $ 4th Qtr. 12 Mos. --------------------------------------------------------------------- U.S: 1,703 579 2,282 124 2,406 85% (58%) Clarinex 207 132 340 146 485 (36%) 3% Claritin Rx Franchise* 1,242 303 1,545 (121) 1,424 N/M (98%) Nasonex 155 124 279 80 359 (3%) (16%) Proventil 89 22 111 17 128 N/M (2%) Other 10 (2) 7 2 10 N/M N/M INTERNATIONAL: 458 226 684 214 898 20% 11% Clarinex 50 32 82 31 112 30% 74% Claritin Rx Franchise 209 99 308 70 378 16% (9%) Nasonex 83 36 119 45 164 21% 21% Other 116 59 175 68 244 19% 6% TOTAL: 2,161 805 2,966 338 3,304 44% (39%) Clarinex 258 164 422 176 598 (25%) 16% Claritin Rx Franchise* 1,451 402 1,853 (51) 1,802 N/M (79%) Nasonex 238 160 398 125 523 6% (4%) Proventil 89 22 111 17 128 N/M (2%) Other 125 57 182 71 253 38% 24% ---------------------------------------------------------------------
* U.S. OTC CLARITIN sales are now reported in the OTC category (see page 6). Notes: All figures rounded. Totals may not add due to rounding. N/M - not a meaningful percentage. 3 SCHERING-PLOUGH CORPORATION CARDIOVASCULAR PRODUCT SALES (DOLLARS IN MILLIONS)
------------------------------------------------------------------------------------------------- 2003 2002 ------------------------------------------------------------------------------------------------- 1st 2nd 6 3rd 9 4th 1st 2nd 6 3rd 9 Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year Qtr. Qtr. Mos. Qtr. Mos. $ $ $ $ $ $ $ $ $ $ $ $ ------------------------------------------------------------------------------------------------- U.S.: 95 109 204 99 303 55 357 95 89 184 74 258 Integrilin 84 87 171 73 244 40 284 62 71 134 72 206 Other 11 22 33 26 59 15 73 33 18 50 2 52 INTERNATIONAL: 24 28 52 26 78 32 110 22 26 48 26 74 Integrilin 5 5 10 6 16 6 22 6 6 12 5 17 Other 19 23 42 20 62 26 88 16 20 36 21 57 TOTAL: 119 137 257 124 380 87 467 117 115 232 99 331 Integrilin 89 92 181 79 260 46 306 68 78 146 77 223 Other 30 45 76 45 120 41 161 49 37 86 22 108 -------------------------------------------------------------------------------------------------
------------------------------------ 2002 ------------------------------------ 4th 4th Qtr. 12 Mos. Qtr. Year vs vs $ $ 4th Qtr. 12 Mos. ------------------------------------ U.S.: 78 336 (30%) 6% Integrilin 77 283 (49%) - Other 1 53 N/M 38% INTERNATIONAL: 24 97 35% 13% Integrilin 4 20 75% 8% Other 20 77 30% 14% TOTAL: 102 433 (15%) 8% Integrilin 81 304 (43%) 1% Other 21 129 95% 25% ------------------------------------
Notes: Certain prior period amounts have been reclassified to conform to the current year presentation. All figures rounded. Totals may not add due to rounding. N/M - not a meaningful percentage. 4 SCHERING-PLOUGH CORPORATION DERMATOLOGICALS, OTHER PHARMACEUTICAL, GLOBAL PHARMACEUTICAL (DOLLARS IN MILLIONS)
------------------------------------------------------------------------------------------------------------- 2003 2002 ------------------------------------------------------------------------------------------------------------- 1st 2nd 6 3rd 9 4th 1st 2nd 6 3rd Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year Qtr. Qtr. Mos. Qtr. $ $ $ $ $ $ $ $ $ $ $ ------------------------------------------------------------------------------------------------------------- U.S. 18 41 59 23 81 9 90 32 20 52 27 INTERNATIONAL 100 103 203 108 311 106 417 88 92 180 94 DERMATOLOGICALS: 118 143 262 130 392 115 507 120 112 232 121 OTHER PHARM: 191 126 316 180 496 101 597 174 229 403 167 ----------------------------------------------------------------------------------------------------------------------------------- U.S. 643 757 1,401 549 1,950 426 2,376 1,337 1,441 2,778 1,156 INTERNATIONAL 1,019 1,139 2,158 1,048 3,206 1,090 4,296 885 1,053 1,938 993 GLOBAL PHARM: 1,662 1,897 3,559 1,598 5,156 1,516 6,672 2,222 2,494 4,716 2,149 -----------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------- 2002 --------------------------------------------------- 9 4th 4th Qtr. 12 Mos. Mos. Qtr. Year vs vs $ $ $ 4th Qtr. 12 Mos. --------------------------------------------------- U.S. 79 53 132 (84%) (32%) INTERNATIONAL 274 104 378 2% 10% DERMATOLOGICALS: 353 158 511 (27%) (1%) OTHER PHARM: 571 236 807 (57%) (26%) ------------------------------------------------------------------------- U.S. 3,934 885 4,819 (52%) (51%) INTERNATIONAL 2,932 1,037 3,969 5% 8% GLOBAL PHARM: 6,866 1,922 8,788 (21%) (24%) -------------------------------------------------------------------------
Notes: International pharmaceutical sales reflect a favorable foreign exchange rate impact of 12% in the 2003 4th quarter and 11% year to date. Certain prior period amounts have been reclassified to conform to the current year presentation. All figures rounded. Totals may not add due to rounding. N/M - not a meaningful percentage. 5 SCHERING-PLOUGH CORPORATION ANIMAL HEALTH, OTC, FOOT CARE, SUN CARE & CONSOLIDATED SALES (DOLLARS IN MILLIONS)
-------------------------------------------------------------------------------------------------- 2003 2002 -------------------------------------------------------------------------------------------------- 1st 2nd 6 3rd 9 4th 1st 2nd Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year Qtr. Qtr. $ $ $ $ $ $ $ $ $ -------------------------------------------------------------------------------------------------- OTC: 155 122 276 143 420 143 563 39 37 OTC Claritin 125 88 212 107 319 96 415 0 0 Other OTC 30 34 64 36 101 47 148 39 37 FOOT CARE: 58 79 137 75 211 64 275 73 79 SUN CARE: 64 39 104 12 116 11 127 72 52 CONSUMER HEALTH CARE: 277 240 517 230 747 218 965 184 168 U.S. 45 49 94 57 150 68 218 57 49 INTERNATIONAL 98 122 220 113 333 146 479 94 122 ANIMAL HEALTH: 143 171 313 170 483 214 697 150 171 ------------------------------------------------------------------------------------------------------------------------------------ U.S. 965 1,047 2,012 836 2,848 712 3,559 1,577 1,659 International 1,116 1,261 2,378 1,162 3,539 1,236 4,775 979 1,175 TOTAL CONSOLIDATED: 2,082 2,308 4,389 1,998 6,386 1,948 8,334 2,556 2,833 ------------------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------- 2002 ---------------------------------------------------------------------------- 6 3rd 9 4th 4th Qtr. 12 Mos. Mos. Qtr. Mos. Qtr. Year vs vs $ $ $ $ $ 4th Qtr. 12 Mos. ---------------------------------------------------------------------------- OTC: 76 39 115 155 269 (8%) N/M OTC Claritin 0 0 0 105 105 (9%) N/M Other OTC 76 39 115 50 164 (6%) (10%) FOOT CARE: 152 63 214 65 279 (1%) (1%) SUN CARE: 124 8 132 35 167 (69%) (24%) CONSUMER HEALTH CARE: 352 110 461 255 715 (14%) 35% U.S. 106 59 165 62 227 10% (4%) INTERNATIONAL 215 103 318 131 450 11% 7% ANIMAL HEALTH: 321 162 483 193 677 11% 3% -------------------------------------------------------------------------------------------------------------- U.S. 3,236 1,324 4,560 1,201 5,761 (41%) (38%) International 2,153 1,096 3,250 1,169 4,419 6% 8% TOTAL CONSOLIDATED: 5,389 2,421 7,810 2,370 10,180 (18%) (18%) --------------------------------------------------------------------------------------------------------------
Notes: Certain prior period amounts have been reclassified to conform to the current year presentation. All figures rounded. Totals may not add due to rounding. N/M - not a meaningful percentage. 6 MISCELLANEOUS DATA (DOLLARS IN MILLIONS)
----------------------------------------------------------------------------------------------------- 2003 2002 ----------------------------------------------------------------------------------------------------- 1st 2nd 6 3rd 9 4th 1st 2nd 6 3rd Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year Qtr. Qtr. Mos. Qtr. $ $ $ $ $ $ $ $ $ $ $ ----------------------------------------------------------------------------------------------------- CONSOLIDATED SALES GROWTH RATES: As Reported (19%) (19%) (19%) (17%) (18%) (18%) (18%) 11% 8% 9% 2% Excluding Exchange (23%) (24%) (24%) (21%) (23%) (24%) (23%) 13% 8% 10% (1%) OTHER, NET Interest Income $13 $15 $28 $9 $37 $20 $57 $17 $18 $35 $18 Interest Expense (13) (12) (25) (24) (49) (32) (81) (5) (12) (17) (4) FX Gains/(Losses) (1) - (1) 1 (1) - (1) 2 2 4 (1) Other Income/(Expense) (12) 1 (10) (27) (36) 2 (34) 12 8 19 (9) Total - Other, Net ($13) $4 ($8) ($41) ($49) ($10) ($59) $26 $16 $41 $4 EFFECTIVE TAX RATE 20.0% 20.0% 20.0% ** ** 15.0% ** 23.0% 23.0% 23.0% 23.0% -----------------------------------------------------------------------------------------------------
------------------------ 2002 ------------------------ 9 4th Mos. Qtr. Year $ $ $ ------------------------ CONSOLIDATED SALES GROWTH RATES: As Reported 7% (4%) 4% Excluding Exchange 7% (6%) 3% OTHER, NET Interest Income $53 $22 $75 Interest Expense (21) (6) (28) FX Gains/(Losses) 4 (2) 2 Other Income/(Expense) 11 84 95 Total - Other, Net $47 $98 $144 EFFECTIVE TAX RATE 23.0% 23.0% 23.0% ------------------------
** In the 2003 third quarter, the company reduced its estimate of the 2003 annual effective tax rate to 15% from 20% on income, excluding the $350 million non-tax deductible provision to increase litigation reserves. All figures rounded. Totals may not add due to rounding. N/M - not a meaningful percentage. --------------------------------------------------- Lisa W. DeBerardine 908-298-7437 Janet M. Barth 908-298-7417 --------------------------------------------------- 7 SCHERING-PLOUGH CORPORATION 2003 RECONCILIATION FOR EQUITY INCOME FROM CHOLESTEROL JV and SPECIAL CHARGES (DOLLARS IN MILLIONS)
2003 FIRST QUARTER --------------------------------------------------------------------------------------- As Reported Adjustment As Adjusted ----------- ---------- ----------- Net Sales $2,074 $8 $2,082 Cost of Sales 658 -- 658 --------------------------------------- Gross Margin 1,416 8 1,424 R&D 344 (22) 322 Equity (Income)/Loss from Cholesterol J.V. -- 30 30 Other (Income)/Expense 13 -- 13 Special Charges -- -- -- Ratios to Sales Net Sales 100% 100% 100% Cost of Sales 31.7% (0.1) 31.6% Gross Margin 68.3% 0.1 68.4% R&D 16.6% (1.1) 15.5% ---------------------------------------------------------------------------------------
2003 SECOND QUARTER 2003 FIRST SIX MONTHS ----------------------------------------------------------------------------------------------------------------------------------- As Reported Adjustment As Adjusted As Reported Adjustment As Adjusted ----------- ---------- ----------- ----------- ---------- ----------- Net Sales $2,338 ($30) $2,308 $4,411 ($22) $4,389 Cost of Sales 784 -- 784 1,442 -- 1,442 ---------------------------------------- ------------------------------------- Gross Margin 1,554 (30) 1,524 2,969 (22) 2,947 R&D 393 (24) 369 737 (46) 691 Equity (Income)/Loss from Cholesterol J.V. -- 26 (26) -- 4 4 Other (Income)/Expense (4) 0 (4) 8 0 8 Special Charges -- 20 20 -- 20 20 Ratios to Sales Net Sales 100% 100% 100% 100% 100% 100% Cost of Sales 33.5% 0.5 34.0% 32.7% 0.2 32.9% Gross Margin 66.5% (0.5) 66.0% 67.3% (0.2) 67.1% R&D 16.8% (0.8) 16.0% 16.7% (0.9) 15.8% -----------------------------------------------------------------------------------------------------------------------------------
2003 THIRD QUARTER 2003 FIRST NINE MONTHS ----------------------------------------------------------------------------------------------------------------------------------- As Reported Adjustment As Adjusted As Reported Adjustment As Adjusted ----------- ---------- ----------- ----------- ---------- ----------- Net Sales $2,041 ($43) $1,998 $6,452 ($66) $6,386 Cost of Sales 652 -- 652 2,094 -- 2,094 ----------------------------------------- ------------------------------------- Gross Margin 1,389 (43) 1,346 4,358 (66) 4,292 R&D 401 (19) 382 1,139 (65) 1,074 Equity (Income)/Loss from Cholesterol J.V. -- (24) (24) -- 21 (21) Other (Income)/Expense 391 (350) 41 399 350 49 Special Charges -- 350 350 -- 370 370 Ratios to Sales Net Sales 100% 100% 100% 100.0% 100.0% 100.0% Cost of Sales 31.9% (0.7) 32.6% 32.5% 0.3 32.8% Gross Margin 68.1% 0.7 67.4% 67.5% (0.3) 67.2% R&D 19.7% (0.6) 19.1% 17.6% (0.8) 16.8% -----------------------------------------------------------------------------------------------------------------------------------
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