-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, IB6L2jDaq8+A5UcYQIAP0SrydsShLWLZze6cGYtp3SZPK0mUMC9IrUeGqbyYNJyZ tjf0sG8RAwb8Euy1iqlQ4Q== 0000950123-94-001830.txt : 19941111 0000950123-94-001830.hdr.sgml : 19941111 ACCESSION NUMBER: 0000950123-94-001830 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19940930 FILED AS OF DATE: 19941110 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: MERCK & CO INC CENTRAL INDEX KEY: 0000064978 STANDARD INDUSTRIAL CLASSIFICATION: 2834 IRS NUMBER: 221109110 STATE OF INCORPORATION: NJ FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-03305 FILM NUMBER: 94558773 BUSINESS ADDRESS: STREET 1: ONE MERCK DR STREET 2: P O BOX 100 CITY: WHITEHOUSE STATION STATE: NJ ZIP: 08889-0100 BUSINESS PHONE: 9084231000 MAIL ADDRESS: STREET 1: ONE MERCK DR STREET 2: PO BOX 100 WS3AB-05 CITY: WHITEHOUSE STATION STATE: NJ ZIP: 08889-0100 10-Q 1 MERCK & CO., INC. 1 SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q (Mark One) /X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 1994 ------------------ OR / / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to --------- --------- Commission File No. 1-3305 MERCK & CO., INC. P. O. Box 100 One Merck Drive Whitehouse Station, N.J. 08889-0100 (908) 423-1000 Incorporated in New Jersey I.R.S. Employer Identification No. 22-1109110
The number of shares of common stock outstanding as of the close of business on October 31, 1994:
Class Number of Shares Outstanding ----- ---------------------------- Common Stock 1,258,365,534
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes X No ------- 2 Part I - Financial Information - ------------------------------ MERCK & CO., INC. AND SUBSIDIARIES INTERIM CONSOLIDATED STATEMENT OF INCOME THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 1994 AND 1993 -------------------------------------------------------------- ($ in millions except per share amounts)
Three Months Nine Months Ended September 30 Ended September 30 -------------------- --------------------- 1994 1993 1994 1993 -------- -------- --------- -------- Sales $3,792.0 $2,544.1 $11,098.3 $7,497.4 -------- -------- --------- -------- Costs and Expenses Materials and production 1,451.9 538.6 4,436.1 1,658.9 Marketing and administrative 820.7 711.5 2,303.3 2,135.8 Research and development 308.4 287.6 865.6 818.6 Restructuring charge - - - 775.0 Other (income) expense, net 39.3 .3 163.8 (33.3) -------- -------- --------- -------- 2,620.3 1,538.0 7,768.8 5,355.0 -------- -------- --------- -------- Income Before Taxes 1,171.7 1,006.1 3,329.5 2,142.4 Taxes on Income 386.9 300.4 1,105.4 650.4 -------- -------- --------- -------- Net Income $ 784.8 $ 705.7 $ 2,224.1 $1,492.0 ======== ======== ========= ======== Per Share of Common Stock: Net Income $ .62 $ .62 $1.77 $1.31 Dividends Declared $ .30 $ .28 $ .86 $ .78 Average Number of Common Shares Outstanding (millions) 1,260.9 1,136.0 1,257.9 1,139.2
The accompanying notes are an integral part of this financial statement. - 1 - 3 MERCK & CO., INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET SEPTEMBER 30, 1994 AND DECEMBER 31, 1993 ---------------------------------------- ($ in millions)
September 30 December 31 1994 1993 ------------ ----------- ASSETS Current Assets Cash and cash equivalents $ 1,213.0 $ 829.4 Short-term investments 1,193.1 712.9 Accounts receivable 2,148.8 2,094.3 Inventories 1,589.5 1,641.7 Prepaid expenses and taxes 472.6 456.3 --------- --------- Total Current Assets 6,617.0 5,734.6 --------- --------- Investments 1,545.4 1,779.9 Property, Plant and Equipment, at cost, net of allowance for depreciation of $2,525.7 in 1994 and $2,278.2 in 1993 5,220.4 4,894.6 Goodwill and Other Intangibles, net of accumulated amortization of $229.1 in 1994 and $97.2 in 1993 6,684.2 6,645.5 Other Assets 1,053.1 872.9 --------- --------- $21,120.1 $19,927.5 ========= ========= LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts payable and accrued liabilities $ 2,485.0 $ 2,378.3 Loans payable 961.6 1,736.0 Income taxes payable 1,794.7 1,430.4 Dividends payable 379.2 351.0 --------- --------- Total Current Liabilities 5,620.5 5,895.7 --------- --------- Long-Term Debt 1,103.8 1,120.8 --------- --------- Deferred Income Taxes and Noncurrent Liabilities 1,881.3 1,744.9 --------- --------- Minority Interests 1,257.1 1,144.4 --------- --------- Stockholders' Equity Common stock Authorized - 2,700,000,000 shares Issued - 1,482,609,850 shares - 1994 - 1,480,611,247 shares - 1993 4,612.9 4,576.5 Retained earnings 10,557.5 9,393.2 --------- --------- 15,170.4 13,969.7 Less treasury stock, at cost 221,503,746 shares - 1994 226,676,597 shares - 1993 3,913.0 3,948.0 --------- --------- Total Stockholders' Equity 11,257.4 10,021.7 --------- --------- $21,120.1 $19,927.5 ========= =========
The accompanying notes are an integral part of this financial statement. - 2 - 4 MERCK & CO., INC. AND SUBSIDIARIES INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS NINE MONTHS ENDED SEPTEMBER 30, 1994 AND 1993 --------------------------------------------- ($ in millions)
Nine Months Ended September 30 ----------------------- 1994 1993 ---------- --------- CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 2,224.1 $ 1,492.0 Restructuring charge - 775.0 Adjustments to net income 610.4 (116.7) Net changes in assets and liabilities 301.9 (17.5) ---------- --------- NET CASH PROVIDED BY OPERATING ACTIVITIES 3,136.4 2,132.8 ---------- --------- CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures (720.2) (690.9) Purchase of securities, subsidiaries and other investments (10,940.9) (6,985.7) Proceeds from sale of securities, subsidiaries and other investments 10,700.4 7,495.4 Other (47.5) - ---------- --------- NET CASH USED BY INVESTING ACTIVITIES (1,008.2) (181.2) ---------- --------- CASH FLOWS FROM FINANCING ACTIVITIES Net change in short-term borrowings (779.4) (251.7) Proceeds from issuance of debt 179.1 100.0 Payments on debt (131.0) (13.8) Purchase of treasury stock (109.1) (371.0) Dividends paid to stockholders (1,055.0) (856.3) Other 69.9 27.7 ---------- --------- NET CASH USED BY FINANCING ACTIVITIES (1,825.5) (1,365.1) ---------- --------- EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 80.9 35.8 ---------- --------- NET INCREASE IN CASH AND CASH EQUIVALENTS 383.6 622.3 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 829.4 575.1 ---------- --------- CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 1,213.0 $ 1,197.4 ========== =========
The accompanying notes are an integral part of this financial statement. Notes to Financial Statements - ----------------------------- 1. The accompanying unaudited interim financial statements have been prepared pursuant to the rules and regulations for reporting on Form 10-Q. Accordingly, certain information and footnotes required by generally accepted accounting principles for complete financial statements are not included herein. The interim statements should be read in conjunction with the financial statements and notes thereto included in the Company's latest Annual Report on Form 10-K. Interim statements are subject to possible adjustments in connection with the annual audit of the Company's accounts for the full year 1994; in the Company's opinion, all adjustments necessary for a fair presentation of these interim statements have been included and are of a normal and recurring nature. - 3 - 5 Notes to Financial Statements (continued) - ----------------------------- 2. Inventories consisted of:
($ in millions) ----------------------------- September 30 December 31 1994 1993 ------------ ----------- Finished goods $ 930.4 $1,024.4 Raw materials and work in process 597.3 570.6 Supplies 80.9 65.8 --------- -------- Total (approximates current cost) 1,608.6 1,660.8 Reduction to LIFO cost 19.1 19.1 --------- -------- $ 1,589.5 $1,641.7 ========= ========
3. In August 1994, the Company issued a $200.0 million three-year zero coupon note, for net proceeds of $165.5 million. The 5.97% fixed rate inherent in the note was swapped for a floating rate slightly below commercial paper rates. The effect on long-term debt of the issuance of the zero coupon note was offset by conversion of $128.6 million Medco convertible debentures. 4. Effective January 1, 1994, the Company adopted the provisions of Statement of Financial Accounting Standards No. 115, Accounting for Certain Investments in Debt and Equity Securities, which requires certain investments to be recorded at fair value or amortized cost. In accordance with this Statement, the Company has classified its investments as available-for-sale and held-to-maturity. Available-for-sale investments are carried at fair value with unrealized gains and losses recorded, net of tax and minority interest, in Stockholders' Equity and held-to-maturity investments are carried at amortized cost. Prior to 1994, the Company's investments were carried at the lower of cost or market. At January 1, 1994, the net unrealized gain associated with available-for-sale investments of $37.5 million, net of tax and minority interest, was included in Retained earnings. The net unrealized gain included in Retained earnings at September 30, 1994, amounted to $23.4 million, net of tax and minority interest. 5. Sales consisted of:
($ in millions) ----------------------------------------- Three Months Nine Months Ended September 30 Ended September 30 ------------------- ------------------- 1994* 1993 1994* 1993 -------- -------- --------- -------- Human and Animal Health Products and Services: Cardiovasculars $1,314.8 $1,176.5 $ 3,850.4 $3,466.8 Anti-ulcerants 465.8 351.2 1,293.2 978.9 Antibiotics 202.0 208.9 603.3 642.3 Vaccines/biologicals 155.9 143.6 373.9 396.8 Ophthalmologicals 128.6 115.1 345.4 331.7 Anti-inflammatories/analgesics 64.2 82.4 192.8 249.3 Other Merck human health 85.0 121.3 321.7 341.8 Other human health 999.2 - 3,042.4 - Animal health/crop protection 269.0 244.3 765.4 680.6 -------- -------- --------- -------- 3,684.5 2,443.3 10,788.5 7,088.2 Specialty Chemical Products 107.5 100.8 309.8 409.2 -------- -------- --------- -------- $3,792.0 $2,544.1 $11,098.3 $7,497.4 ======== ======== ========= ========
* Sales by therapeutic class include Medco and West Point Pharma (Merck's generic pharmaceutical division) sales of Merck products. Medco and West Point Pharma sales of non-Merck products and Medco services are included in Other human health. - 4 - 6 Notes to Financial Statements (continued) - ----------------------------- 6. Other (income) expense, net, consisted of:
($ in millions) --------------------------------------- Three Months Nine Months Ended September 30 Ended September 30 ------------------ ------------------ 1994 1993 1994 1993 ------ ------ ------- ------- Interest income $(37.0) $(34.8) $(111.0) $(103.0) Interest expense 31.0 20.7 97.0 62.0 Exchange (gains) losses (6.1) 16.1 26.9 41.7 Minority interests 19.1 12.8 72.5 31.1 Amortization of goodwill & other intangibles 44.7 5.0 131.9 10.3 Other income, net (12.4) (19.5) (53.5) (75.4) ------ ------ ------- ------- $ 39.3 $ .3 $ 163.8 $ (33.3) ====== ====== ======= =======
Minority interests include third parties' share of exchange gains and losses arising from translation of the financial statements into U.S. dollars. Interest paid for the nine-month period ended September 30, 1994 and 1993 was $84.7 million and $59.5 million, respectively. 7. Income taxes paid for the nine-month period ended September 30, 1994 and 1993 were $624.0 million and $646.3 million, respectively. 8. As a consequence of the June 1993 sale of the Calgon Water Management business and the November 1993 acquisition of Medco Containment Services, Inc. the relative importance of the Company's Specialty Chemical operations has substantially diminished in 1994 and management views its Human and Animal Health business as a dominant industry segment. 9. Legal proceedings to which the Company is a party are discussed in Part I Legal Proceedings, in the Annual Report on Form 10-K. There were no material developments in the three-month period ended September 30, 1994. - 5 - 7 MANAGEMENT'S ANALYSIS OF INTERIM FINANCIAL INFORMATION ------------------------------------------------------ Net income for the third quarter was $784.8 million, an increase of 11% over the third quarter of 1993. Earnings per share for the third quarter were $0.62, level with the third quarter of 1993. The dilution in the earnings per share growth in 1994 is principally due to the additional shares issued in November 1993 to complete the Medco acquisition. Sales for the quarter were $3.8 billion, up 49% from the same period last year. For the first nine months, net income was $2,224.1 million, an increase of 10% from the first nine months of 1993, excluding the effect of the 1993 restructuring charge. Earnings per share on this basis were $1.77 for the first nine months, level with the first nine months of 1993 which were also impacted by the shares issued to complete the Medco acquisition. Sales rose 48% to $11.1 billion. Sales for the quarter and the first nine months were affected by the Medco acquisition in 1993 and the nine months results were also impacted by the sale of the Calgon Water Management business in the second quarter of 1993. Adjusting for these effects, sales for the third quarter and first nine months increased 15% and 17%, respectively. The difference between the aforementioned sales and net income growth rates on a year-to-year basis stems predominantly from the lower gross margins and lower marketing and administrative cost and expense levels, relative to sales, historically associated with Medco's business. Sales growth for the first nine months was led by newer products and the continued growth of Merck-Medco Managed Care. Both our domestic and international operations reported solid unit volume gains. Sales of Merck human and animal health products and services increased 11% for the third quarter. Foreign exchange had a one percentage point favorable effect on the third quarter sales growth as compared to essentially no impact on the second quarter. The effect of pricing actions reduced the third quarter sales growth by almost two percentage points, primarily as a result of sales of human and animal health products in certain international markets. Sales outside the United States accounted for 32% of the first nine months of 1994 sales, compared with 45% for the same period last year. The 13 point shift is principally due to higher domestic sales as a result of the Medco acquisition. Income growth for the first nine months resulted from strong unit volume gains. The unfavorable effects of inflation, product mix and a higher tax rate were offset by cost controls and productivity improvements from our continuing efforts to streamline and restructure our operations. In the human and animal health products segment of Merck's business, results for the first nine months were paced by unit sales gains by 'Vasotec', 'Vaseretic', 'Prinivil', 'Zocor', 'Prilosec', 'Pepcid', 'Proscar' and ivermectin. Significant volume growth in Merck-Medco Managed Care added to the nine month sales increase. 'Vasotec', Merck's angiotensin converting enzyme (ACE) inhibitor for reducing high blood pressure and treating heart failure, is sold in all major markets and continues to be the leading branded product in the worldwide cardiovascular market. New Federal guidelines for the treatment of heart failure -- which are based on the results of the latest clinical trials and outcomes research -- call for wider use of ACE inhibitors. - 6 - 8 MANAGEMENT'S ANALYSIS OF INTERIM FINANCIAL INFORMATION (continued) - ------------------------------------------------------ Together, Merck's cholesterol-lowering agents, 'Mevacor' and 'Zocor' hold over 40% of the worldwide cholesterol-lowering market and continued solid sales growth for the first nine months of 1994. Unit sales for 'Mevacor', however, were down due to strong competition and the lower rate of growth in the cholesterol-lowering market in the United States. 'Mevacor' is the most widely prescribed cholesterol-lowering agent in the treatment of patients with primary elevated cholesterol in the United States. Out of the 13 million people in the United States who could benefit from treatment with cholesterol-lowering agents, only 6.8 million are being treated. Merck continues strategic initiatives to increase appropriate usage. 'Pepcid', an H2-receptor antagonist for treatment of duodenal ulcers and the short-term treatment of gastric ulcers and gastroesophageal reflux disease (GERD), continues to grow rapidly in the United States and maintains its position against strong competition outside the United States. A New Drug Application has been filed with the U.S. Food and Drug Administration for an over-the-counter version. Over-the-counter versions of 'Pepcid' have been launched in the United Kingdom and in New Zealand. 'Prilosec', which is indicated for poorly responsive symptomatic GERD and as a first-line therapy for short-term treatment of active duodenal ulcers and severe erosive esophagitis, continues to show strong volume growth. 'Proscar' recorded significant volume growth in the first nine months of 1994. It is the only drug indicated to treat symptomatic benign prostate enlargement that shrinks the prostate. 'Proscar', developed to treat a common condition that affects the majority of men over the age of 50, has been introduced in over 50 countries, representing nearly every major market including the United States. The Company is continuing an extensive medical and consumer education program worldwide to heighten awareness of the disease, improve understanding of its natural history and communicate the effects of treatment with 'Proscar', including new direct-to-consumer ads for 'Proscar' in the United States. Ivermectin, Merck's broad-spectrum antiparasitic and the world's leading animal health product, continues to show strong growth. 'Fosamax', Merck's new medicine for the treatment of post-menopausal osteoporosis, was launched in Italy in November 1993 and has been cleared for marketing in Mexico. Regulatory filings have been made in 32 countries to date and a filing in the United States is scheduled for 1995. Cozaar (TM), Merck's new once daily antihypertensive product, was cleared for marketing recently in Sweden and Denmark and is expected to be launched in these countries shortly. Marketing applications for the treatment of hypertension have been submitted in the United States and other countries, and applications have also been made in the United States and France for a combination of Cozaar (TM) and hydrochlorothiazide (a diuretic), which is called Hyzaar (TM). Cozaar (TM) is the first in a new class of drugs that blocks a substance called angiotensin II, a potent elevator of blood pressure. Cozaar (TM) has been developed in collaboration with The DuPont Merck Pharmaceutical Company. Unit sales declined for a group of longer-established human and animal health products due to competition. - 7 - 9 MANAGEMENT'S ANALYSIS OF INTERIM FINANCIAL INFORMATION (continued) - ------------------------------------------------------ Merck-Medco Managed Care currently manages pharmaceutical benefits for approximately 38 million plan participants, up from 33 million at the time of the merger announcement. Merck-Medco is developing a series of disease management programs based on patient, pharmacist and physician communication and intervention to improve drug therapy, promote better health outcomes and lower the long-term costs of care associated with certain chronic diseases. On August 16, 1994, the Company announced its intention to sell its remaining specialty chemical units, Kelco and Calgon Vestal Laboratories. The decision reflects the Company's intention to focus its resources more fully on its human and animal health business. On November 3, 1994 the Company announced the signing of a definitive agreement for the sale of Calgon Vestal Laboratories to ConvaTec, a division of Bristol-Myers Squibb, for a cash purchase price of $261.5 million. Neither business is significant to the Company's financial position or ongoing results of operation. In September 1994, the Company resumed its 1993 treasury stock buy back program which was suspended in July 1993 in anticipation of the Medco acquisition. On November 1, 1994, Astra AB paid the Company $820.0 million for an interest in a joint venture. The venture will be carried on in a company called Astra Merck, Inc., in which Merck and Astra each own a 50 percent share. The payment to Merck will result in an estimated after-tax gain of approximately $275.0 million. The transaction is not expected to have a material impact on the Company's ongoing results of operations. However, the transaction will affect the Company's future sales-growth rates, since Astra Merck product sales will no longer be reported as Merck sales. Sales of Astra Merck products were $696.5 million for the nine months ended September 30, 1994. In November 1994, the Company issued a 200.0 million three-year Swiss franc note. The 5.375% fixed rate inherent in the note was swapped for a floating rate slightly below commercial paper rates and is payable in U.S. dollars. The debt was effectively converted into approximately $156.0 million U.S. dollars through a currency swap under which the Company will exchange U.S. dollars for Swiss francs at maturity. - 8 - 10 Part II - Other Information - --------------------------- Item 6. Exhibits and Reports on Form 8-K - ----------------------------------------- (a) Exhibit -------
Number Description Method of Filing ------ ----------- ---------------- 11 Computation of Earnings Filed with this document Per Common Share 12 Computation of Ratios of Filed with this document Earnings to Fixed Charges 27 Financial Data Schedule Filed with this document
(b) Reports on Form 8-K ------------------- During the three-month period ending September 30, 1994, the following report was filed on Form 8-K under Item 5, Other Events: 1. The report dated August 16, 1994 and filed August 17, 1994 announcing Registrant's intention to sell its specialty chemical units, Kelco and Calgon Vestal Laboratories. - 9 - 11 Signatures ---------- Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. MERCK & CO., INC. /s/ Mary M. McDonald --------------------------- Date: November 10, 1994 MARY M. MCDONALD Senior Vice President and General Counsel /s/ Peter E. Nugent --------------------------- Date: November 10, 1994 PETER E. NUGENT Vice President, Controller - 10 - 12 EXHIBIT INDEX -------------
Exhibit Number Description ------- ----------- 11 Computation of Earnings Per Common Share 12 Computation of Ratios of Earnings to Fixed Charges 27 Financial Data Schedule
EX-11 2 COMPUTATION OF EARNINGS PER COMMON SHARE 1 Exhibit 11 MERCK & CO., INC. AND SUBSIDIARIES Computation of Earnings Per Common Share ---------------------------------------- (In millions except per share amounts)
Three Months Nine Months Ended September 30 Ended September 30 ------------------- ------------------- 1994 1993 1994 1993 -------- -------- -------- -------- Net Income and Adjusted Earnings: - --------------------------------- Net Income..................................... $ 784.8 $ 705.7 $2,224.1 $1,492.0 Effect on Earnings of Compensation Expense on Stock Option and Executive Incentive Plans... 2.6 .7 3.6 4.5 Effect on Earnings of Interest on Debentures Issued by Medco................... (.1) - .1 - Adjusted Earnings for Fully Diluted -------- -------- -------- -------- Earnings Per Share........................... $ 787.3 $ 706.4 $2,227.8 $1,496.5 ======== ======== ======== ======== Weighted Average Shares and Share Equivalents Outstanding: - --------------------------------- Weighted Average Shares Outstanding (As Reported) 1,260.9 1,136.0 1,257.9 1,139.2 Common Share Equivalents Issuable Under Stock Option Plans .................... 16.9 4.2 16.8 5.7 Common Shares Issuable Under Executive Incentive Plans.................... 1.9 2.0 1.9 2.0 Common Share Equivalents Issuable on Assumed Conversion of Debentures Issued by Medco..... 1.3 - 1.3 - Weighted Average Shares and -------- -------- -------- -------- Share Equivalents Outstanding................ 1,281.0 1,142.2 1,277.9 1,146.9 ======== ======== ======== ======== Earnings Per Share (As Reported): Net Income..................................... $ .62 $ .62 $ 1.77 $ 1.31 ======== ======== ======== ======== Fully Diluted Earnings Per Share: (a) - --------------------------------- Fully Diluted Earnings Per Share............... $ .61 $ .62 $ 1.74 $ 1.30 ======== ======== ======== ========
(a) This calculation is submitted in accordance with the regulations of the Securities and Exchange Commission although not required by APB Opinion No. 15 because it results in dilution of less than 3%. EX-12 3 COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES 1 Exhibit 12 MERCK & CO., INC. AND SUBSIDIARIES Computation of Ratios of Earnings to Fixed Charges -------------------------------------------------- (In millions except ratio data)
Nine Months Ended Sept. 30, Years Ended December 31 ---------------------------------------------------- 1994 1993 1992 1991 1990 1989 ---------- -------- -------- -------- -------- -------- Income Before Taxes and Cumulative Effect of Accounting Changes $3,329.5 $3,102.7 $3,563.6 $3,166.7 $2,698.8 $2,283.0 -------- -------- -------- -------- -------- -------- Add: One-third of Rents 27.5 35.0 34.0 31.1 26.5 20.0 Interest Expense,(Net) 78.9 48.0 23.6 26.0 51.9 45.5 -------- -------- -------- -------- -------- -------- Income as Adjusted $3,435.9 $3,185.7 $3,621.2 $3,223.8 $2,777.2 $2,348.5 ======== ======== ======== ======== ======== ======== Fixed Charges One-third of Rents $ 27.5 $ 35.0 $ 34.0 $31.1 $26.5 $20.0 Interest Expense 97.0 84.7 72.7 68.7 69.8 53.2 ------ ------ ------ ----- ----- ----- Fixed Charges $124.5 $119.7 $106.7 $99.8 $96.3 $73.2 ====== ====== ====== ===== ===== ===== Ratio of Earnings to Fixed Charges 28 27 34 32 29 32 -- -- -- -- -- --
For purposes of computing these ratios, "earnings" consist of income before taxes and cumulative effect of accounting changes, one-third of rents (deemed by the Company to be representative of the interest factor inherent in rent), and interest expense, net of amounts capitalized. "Fixed charges" consist of one-third of rents and interest expense as reported in the Company's consolidated financial statements. EX-27 4 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE INTERIM CONSOLIDATED STATEMENT OF INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1994 AND THE CONSOLIDATED BALANCE SHEET AS OF SEPTEMBER 30, 1994 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000,000 9-MOS DEC-31-1994 SEP-30-1994 1,213 1,193 2,149 0 1,590 6,617 7,746 (2,526) 21,120 5,621 1,104 4,613 0 0 14,471 21,120 11,098 11,098 4,436 4,436 866 0 97 3,330 1,105 2,224 0 0 0 2,224 1.77 1.74 NOT MATERIAL TO THE CONSOLIDATED FINANCIAL STATEMENTS.
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