(Unaudited)
(millions, except per share and employee data)
|
2000
|
1999
|
1998
|
1997
|
|
Actual
|
Pro
Forma
(10)
|
Restated
(9)
Actual
|
Pro
Forma
(10)
|
|
|
Total revenues
|
$1,736.4
|
$1,727.7
|
$1,401.0
|
$1,401.0
|
$1,150.9
|
$1,016.7
|
Product sales
|
$1,278.3
|
$1,278.3
|
$1,039.1
|
$1,039.1
|
$717.8
|
$584.9
|
Royalties
|
$207.2
|
$207.2
|
$189.3
|
$189.3
|
$229.6
|
$241.1
|
Contract & other
|
$160.4
|
$151.7
|
$83.2
|
$83.2
|
$114.8
|
$121.6
|
Interest
|
$90.4
|
$90.4
|
$89.4
|
$89.4
|
$88.7
|
$69.1
|
|
|
Total costs and expenses
|
$1,732.4
|
$1,264.2
|
$2,761.6
|
$1,032.8
|
$898.3
|
$846.9
|
Cost of sales
|
$364.9(3)
|
$272.1
|
$285.6(3)
|
$192.2
|
$138.6
|
$102.5
|
Research & development
|
$489.9
|
$489.9
|
$367.3
|
$367.3
|
$396.2
|
$470.9
|
Marketing, general & administrative
|
$497.0
|
$497.0
|
$467.9
|
$467.9
|
$358.9
|
$269.9
|
Special charges
|
-
|
-
|
$1,437.7(5)
|
-
|
-
|
-
|
Recurring charges related to redemption
|
$375.3(6)
|
-
|
$197.7(6)
|
-
|
-
|
-
|
Interest
|
$5.3
|
$5.3
|
$5.4
|
$5.4
|
$4.6
|
$3.6
|
|
|
Income (loss) data
|
|
|
|
|
|
|
Income (loss) before taxes and cumulative effect of accounting change
|
$4.0
|
$463.5
|
$(1,360.6)
|
$368.2
|
$252.6
|
$169.8
|
Income tax (benefit) provision
|
$20.4
|
$143.7
|
$(203.1)
|
$121.5
|
$70.7
|
$40.8
|
Income (loss) before cumulative effect of accounting change
|
$(16.4)
|
$319.8
|
$(1,157.5)
|
$246.7
|
$181.9
|
$129.0
|
Cumulative effect of accounting change, net of tax
|
$(57.8)(8)
|
-
|
-
|
-
|
-
|
-
|
Net income (loss)
|
$(74.2)
|
$319.8
|
$(1,157.5)
|
$246.7
|
$181.9
|
$129.0
|
Earnings (loss) per share:
|
|
|
|
|
|
|
Basic
|
$(0.14)
|
$0.61
|
$(2.26)
|
$0.48
|
$0.36
|
$0.26
|
Diluted
|
$(0.14)
|
$0.60
|
$(2.26)
|
$0.47
|
$0.35
|
$0.26
|
|
|
Selected balance sheet data
|
|
|
|
|
|
|
Cash, short-term investments & long-term marketable securities
|
$2,459.4
|
-
|
$1,957.4
|
-
|
$1,604.6
|
$1,286.5
|
Accounts receivable
|
$261.7
|
-
|
$214.8
|
-
|
$149.7
|
$189.2
|
Inventories
|
$265.8
|
-
|
$275.2
|
-
|
$148.6
|
$116.0
|
Property, plant & equipment, net
|
$752.9
|
-
|
$730.1
|
-
|
$700.2
|
$683.3
|
Goodwill
|
$1,455.8
|
-
|
$1,609.1
|
-
|
-
|
-
|
Other intangible assets
|
$1,280.4
|
-
|
$1,453.3
|
-
|
$65.0
|
$54.7
|
Other long-term assets
|
$168.5
|
-
|
$201.1
|
-
|
$131.3
|
$122.5
|
Total assets
|
$6,711.8
|
-
|
$6,534.8
|
-
|
$2,855.4
|
$2,507.6
|
Total current liabilities
|
$448.7
|
-
|
$477.4
|
-
|
$291.3
|
$289.6
|
Long-term debt
|
$149.7
|
-
|
$149.7
|
-
|
$150.0
|
$150.0
|
Total liabilities
|
$1,037.6
|
-
|
$1,264.9
|
-
|
$511.6
|
$476.4
|
Total stockholders' equity
|
$5,674.2
|
-
|
$5,269.9(7)
|
-
|
$2,343.8
|
$2,031.2
|
|
|
Other data
|
|
|
|
|
|
|
Depreciation & amortization expense
|
$463.0
|
-
|
$280.7
|
-
|
$78.1
|
$65.5
|
Capital expenditures
|
$112.7
|
-
|
$95.0
|
-
|
$88.1
|
$154.9
|
|
|
Share information
|
|
|
|
|
|
|
Shares used to compute EPS:
|
|
|
|
|
|
|
Basic
|
$522.2
|
$522.2
|
$512.9
|
$512.9
|
$503.3
|
$492.2
|
Diluted
|
$522.2
|
$536.1
|
$512.9
|
$529.5
|
$519.5
|
$505.6
|
Actual year-end
|
$525.5
|
$525.5
|
$516.2
|
$516.2
|
$508.5
|
$497.0
|
|
|
Per share data
|
|
|
|
|
|
|
Market price:
|
|
|
|
|
|
|
High
|
$117.25
|
-
|
$22.50
|
-
|
$19.94
|
$15.16
|
Low
|
$46.13
|
-
|
$18.63
|
-
|
$14.82
|
$13.32
|
Book value
|
$10.80
|
-
|
$10.21
|
-
|
$4.61
|
$4.09
|
|
|
Number of employees
|
$4,459
|
-
|
$3,883
|
-
|
$3,389
|
$3,242
|
|
(Table Continued below)
|
1996
|
1995
|
1994
|
1993
|
1992
|
1991
|
1990
|
Total revenues
|
$968.7
|
$917.8
|
$795.4
|
$649.7
|
$544.3
|
$515.9
|
$476.1
|
Product sales
|
582.8
|
635.3
|
601.0
|
457.4
|
391.0
|
383.3
|
367.2
|
Royalties
|
214.7
|
190.8
|
126.0
|
112.9
|
91.7
|
63.4
|
47.6
|
Contract & other
|
107.0
|
31.2
|
25.6
|
37.9
|
16.7
|
20.4
|
31.9
|
Interest
|
64.2
|
60.5
|
42.8
|
41.5
|
44.9
|
48.8
|
29.4
|
Total costs and expenses
|
$820.8
|
$745.6
|
$665.8
|
$590.8
|
$522.3
|
$469.8
|
$572.7
|
Cost of sales
|
104.5
|
97.9
|
95.8
|
70.5
|
66.8
|
68.4
|
68.3
|
Research & development
|
471.1
|
363.0
|
314.3
|
299.4
|
278.6
|
221.3
|
173.1
|
Marketing, general & administrative
|
240.1
|
251.7
|
248.6
|
214.4
|
172.5
|
175.3
|
158.1
|
Special charges
|
-
|
25.01
|
-
|
-
|
-
|
-
|
167.72
|
Recurring charges related to redemption
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Interest
|
5.1
|
8.0
|
7.1
|
6.5
|
4.4
|
4.8
|
5.5
|
Income (loss) data
|
|
|
|
|
|
|
|
Income (loss) before taxes and cumulative effect of accounting change
|
$147.9
|
$172.2
|
$129.6
|
$58.9
|
$22.0
|
$46.1
|
$(96.6)
|
Income tax (benefit) provision
|
29.6
|
25.8
|
5.2
|
-
|
1.1
|
1.8
|
1.5
|
Income (loss) before cumulative effect of accounting change
|
118.3
|
146.4
|
124.4
|
58.9
|
20.9
|
44.3
|
(98.0)
|
Cumulative effect of accounting change, net of tax
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Net income (loss)
|
118.3
|
146.4
|
124.4
|
58.9
|
20.9
|
44.3
|
(98.0)
|
Earnings (loss) per share:
|
|
|
|
|
|
|
|
Basic
|
$0.25
|
$0.31
|
$0.27
|
$0.13
|
$0.05
|
$0.10
|
-
|
Diluted
|
0.24
|
0.30
|
0.26
|
0.12
|
0.05
|
0.10
|
(0.26)4
|
Selected balance sheet data
|
|
|
|
|
|
|
|
Cash, short-term investments & long- term marketable securities
|
$1,159.1
|
$1,096.8
|
$920.9
|
$719.8
|
$646.9
|
711.4
|
$691.3
|
Accounts receivable
|
197.6
|
172.2
|
146.3
|
130.5
|
93.9
|
69.0
|
58.8
|
Inventories
|
91.9
|
93.6
|
103.2
|
84.7
|
65.3
|
56.2
|
39.6
|
Property, plant & equipment, net
|
586.2
|
503.7
|
485.3
|
456.7
|
432.5
|
342.5
|
300.2
|
Goodwill
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Other intangible assets
|
40.1
|
42.2
|
16.0
|
13.8
|
12.7
|
25.9
|
42.7
|
Other long-term assets
|
109.1
|
63.3
|
45.0
|
50.3
|
24.4
|
16.8
|
19.0
|
Total assets
|
2,226.4
|
2,011.0
|
1,745.1
|
1,468.8
|
1,305.1
|
1,231.4
|
1,157.7
|
Total current liabilities
|
250.0
|
233.4
|
220.5
|
190.7
|
133.5
|
118.6
|
101.4
|
Long-term debt
|
150.0
|
150.0
|
150.4
|
151.2
|
152.0
|
152.9
|
153.5
|
Total liabilities
|
425.3
|
408.9
|
396.3
|
352.0
|
297.8
|
281.7
|
264.5
|
Total stockholders' equity
|
1,801.1
|
1,602.0
|
1,348.8
|
1,116.8
|
1,007.3
|
949.7
|
893.2
|
Other data
|
|
|
|
|
|
|
|
Depreciation & amortization expense
|
$62.1
|
$58.4
|
$53.5
|
$44.0
|
$52.2
|
$46.9
|
$47.6
|
Capital expenditures
|
141.8
|
70.2
|
82.8
|
87.5
|
126.0
|
71.3
|
36.0
|
Share information
|
|
|
|
|
|
|
|
Shares used to compute EPS:
|
|
|
|
|
|
|
|
Basic
|
482.5
|
473.1
|
464.0
|
455.6
|
447.7
|
444.1
|
-
|
Diluted
|
495.9
|
487.0
|
480.8
|
475.0
|
460.0
|
452.9
|
372.04
|
Actual year-end
|
485.7
|
477.1
|
469.0
|
459.3
|
451.5
|
445.2
|
442.4
|
Per share data
|
|
|
|
|
|
|
|
Market price:
|
|
|
|
|
|
|
|
High
|
$13.85
|
$13.25*
|
$13.38
|
$12.63
|
$9.88
|
$9.07
|
$7.72
|
|
|
|
|
|
|
|
$6.88**
|
Low
|
$12.85
|
$11.13*
|
$10.44
|
$7.82
|
$6.47
|
$5.19
|
$5.03
|
|
|
|
|
|
|
|
$5.44**
|
Book value
|
$3.71
|
$3.36
|
$2.88
|
$2.43
|
$2.23
|
$2.14
|
$2.02
|
Number of employees
|
3,071
|
2,842
|
2,738
|
2,510
|
2,331
|
2,202
|
1,923
|
|
NOTES
We have paid no dividends.
The Financial Summary reflects adoption of SAB 101 in 2000, FAS 130 and 131 in 1998, FAS 128 and 129 in 1997, FAS 121 in 1996, FAS 115 in 1994 and FAS 109 in 1992.
All share and per share amounts reflect two-for-one stock splits that were effected in 2000 and 1999.
*Special Common Stock began trading October 26, 1995. On October 25, 1995, pursuant to the 1995 Agreement with Roche, each share of our Common Stock not held by Roche or its affiliates automatically converted to one share of Special Common Stock.
**Redeemable Common Stock began trading September 10, 1990; prior to that date all shares were Common Stock. Pursuant to the merger agreement with Roche, all shareholders as of September 7, 1990, received for each common share owned, $18 in cash from Roche and one share of newly issued Redeemable Common Stock from Genentech.
***Common Stock began trading July 20, 1999; prior to that date, shares were Special Common Stock. On June 30, 1999, we redeemed all of our outstanding Special Common Stock held by stockholders other than Roche. Roche's percentage ownership of our outstanding equity increased from 65% to 100%. On July 23, 1999, October 26, 1999, and March 29, 2000, Roche completed public offerings of our Common Stock. On January 19, 2000, Roche completed an offering of zero-coupon notes that are exchangeable for an aggregate of 13,034,618 shares of our Common Stock held by Roche. Roche's percentage ownership was approximately 58.4% at December 31, 2000.
(1) Charges related to 1995 merger and the 1995 Agreement with Roche ($21.0 million) and resignation of our former CEO ($4.0 million).
(2) Charges primarily related to 1990 Roche merger.
(3) Includes costs related to the sale of inventory that was written up at the Redemption due to push-down accounting.
(4) Information was not available to restate these amounts pursuant to FAS 128. Reflects amounts previously reported adjusted for the stock splits in 2000 and 1999.
(5) Charges related to 1999 Redemption ($1,207.7 million) and legal settlements ($230.0 million).
(6) Primarily reflects amortization of other intangible assets and goodwill related to the Redemption.
(7) Reflects the impact of the Redemption and related push-down accounting of $5,201.9 million of excess purchase price over net book value, net of charges and accumulated amortization of goodwill and other intangible assets.
(8) Reflects the impact of the adoption of SAB 101 on revenue recognition effective January 1, 2000. Pro forma amounts of net income (loss) and related diluted per share amounts, assuming retroactive application of the change in accounting principle for the years ended 1997 through 2000 (previous amounts were not material) are as follows (in millions, except per share amounts):
|
2000
|
1999
|
1998
|
1997
|
Pro forma:
|
|
|
|
|
Net income (loss)
|
$(16.4)
|
$(1,168.7)
|
$154.5
|
$109.8
|
Earnings (loss) per share diluted
|
$(0.03)
|
$(2.28)
|
$0.30
|
$0.22
|
|
(9) Actual 1999 results include the combined New Basis and Old Basis periods presented in the 1999 Consolidated Statements of Operations and Consolidated Statements of Cash Flows reflecting the June 30, 1999, Redemption. We revised the presentation of our 1999 results to reflect the New and Old basis of accounting and also corrected the accounting related to the write up of the valuation allowance pertaining to unrealized gains on certain marketable securities from amounts previously reported. Refer to "Basis of Presentation and Restatement" as disclosed in the Notes to Consolidated Financial Statements.
(10) Pro forma amounts exclude special charges related to legal settlements and the Redemption, recurring charges related to the Redemption, costs related to the sale of inventory that was written up at the Redemption, and their related tax effects. In addition, pro forma excludes the cumulative effect of the change in accounting principle, net of tax, adopted in 2000.
