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Financials Financial Highlights Marketed Products 11-Year Financial Summary Stockholder Information Form 10-K (601K/PDF)

11-Year Financial Summary (Unaudited)
(In millions, except per share, stock price and employee data)

2007-2004

2003-2000

1999-1997

2007-2004

Years Ended December 31, 2007 2006 2005 2004 TOTAL OPERATING REVENUE $11,724 $9,284 $6,633 $4,621   Product sales 9,443 7,640 5,488 3,749   Royalties(1) 1,984 1,354 935 641   Contract revenue 297 290 210 231 TOTAL COSTS AND EXPENSES $7,495 $6,132 $4,712 $3,485   Cost of sales  1,571  1,181  1,011  673   Research and development  2,446  1,773  1,262  948   Marketing, general and administrative  2,256  2,014  1,435  1,088   Collaboration profit sharing  1,080  1,005  823  594   Write-off of in-process research and development related to acquisition(1)  77  -  -  -   Gain on acquisition(1)  (121)  -  -  -   Recurring charges related to redemption and acquisition(2)  132  105  123  145   Special items 54(15) 54(15)  58(15)  37(15) Other income, net $   197 $   251 $   92 $   84 INCOME (LOSS) DATA           Income (loss) before taxes and cumulative effect of accounting change  $4,426  $3,403  $2,013  $1,220   Income tax (benefit) provision 1,657 1,290  734  435   Income (loss) before cumulative effect of accounting change 2,769 2,113 1,279 785   Cumulative effect of accounting change, net of tax  -  -  -  -   Net income (loss) 2,769 2,113 1,279 785 EARNINGS (LOSS) PER SHARE:           Basic: Earnings before cumulative effect of accounting change $   2.63 $   2.01 $   1.21 $   0.74     Cumulative effect of accounting change, net of tax  -  -  -  -     Net earnings per share $   2.63 $   2.01 $   1.21 $   0.74   Diluted: Earnings before cumulative effect of accounting change $   2.59 $   1.97 $   1.18 $   0.73     Cumulative effect of accounting change, net of tax  -  -  -  -     Net earnings per share $   2.59 $   1.97 $   1.18 $   0.73 SELECTED BALANCE SHEET DATA           Cash, cash equivalents, short-term investments, and long-term marketable debt and equity securities  $6,065  $4,325  $3,814  $2,780   Accounts receivable 1,766 1,666 1,050  941   Inventories  1,493  1,178  703  590   Property, plant and equipment, net 4,986 4,173 3,349 2,091   Goodwill   1,577   1,315   1,315   1,315   Other intangible assets  1,168  476  574   668   Other long-term assets 366(14) 1,342(14) 1,074(14) 807(14)   Total assets   18,940   14,842   12,147   9,403   Commercial paper   599(19)   -   -   -   Total current liabilities   3,918   2,010   1,660   1,238   Long-term debt 2,402(17), (18) 2,204(17), (18) 2,083(17), (18)   412   Total liabilities   7,035   5,364   4,677   2,621   Total stockholders' equity   11,905   9,478   7,470   6,782 OTHER DATA           Depreciation and amortization expense $  492 $  407 $  370 $  353   Capital expenditures  977(18)  1,214(18)  1,400(18)  650 SHARE INFORMATION           Shares used to compute basic earnings per share  1,053  1,053  1,055  1,055   Shares used to compute diluted earnings per share  1,069  1,073  1,081  1,079   Shares outstanding at year-end  1,052  1,053  1,054  1,047 PER SHARE DATA           Market price:      High $ 89.73 $ 95.16 $ 100.20 $   68.25          Low $ 65.35 $ 75.58 $   43.90 $   41.00   Book value $   11.32 $   9.00 $     7.09 $     6.48 NUMBER OF EMPLOYEES AT YEAR-END  11,174   10,533   9,563  7,646

(Table Continued below)

2003-2000

Years Ended December 31, 2003 2002 2001 2000 TOTAL OPERATING REVENUE $3,300 $2,584 $2,044 $1,514   Product sales 2,621 2,164 1,743 1,278   Royalties(1) 501 366 264 207   Contract revenue 178 54 37 29(9) TOTAL COSTS AND EXPENSES $2,495 $2,662 $1,896 $1,726   Cost of sales  480  442  354  365(6)   Research and development  722  623  526  490   Marketing, general and administrative  795  546  447  367   Collaboration profit sharing  457  351  247  129   Write-off of in-process research and development related to acquisition(1)  -  -  -  -   Gain on acquisition(1)  -  -  - -   Recurring charges related to redemption and acquisition(2)  154  156(12)  322  375   Special items  (113)(15) 544(13)   -   - Other income, net  $  92  $  108 $135(10) $  216 INCOME (LOSS) DATA           Income (loss) before taxes and cumulative effect of accounting change  $ 897  $   30  $  283  $     4   Income tax (benefit) provision  287  (34)  127  20   Income (loss) before cumulative effect of accounting change 610 64 156 (16)   Cumulative effect of accounting change, net of tax  (47)(16)  -  (6)(10)  (58)(9)   Net income (loss) 563 64(12) 150 (74) EARNINGS (LOSS) PER SHARE:           Basic: Earnings before cumulative effect of accounting change $   0.59  $   0.06  $    0.15  $ (0.02)     Cumulative effect of accounting change, net of tax  (0.05)  -  (0.01)  (0.05)     Net earnings per share $   0.54 $   0.06 $    0.14 $ (0.07)   Diluted: Earnings before cumulative effect of accounting change $   0.58 $   0.06 $    0.15 $ (0.02)     Cumulative effect of accounting change, net of tax  (0.05)  -  (0.01)  (0.05)     Net earnings per share $   0.53 $   0.06 $    0.14 $ (0.07) SELECTED BALANCE SHEET DATA           Cash, cash equivalents, short-term investments, and long-term marketable debt and equity securities  $2,935  $1,602  $2,865  $2,459   Accounts receivable  588  432  321  278   Inventories  470  394  357  266   Property, plant and equipment, net 1,618(16)  1,069  866  753   Goodwill   1,315  1,315  1,303  1,456   Other intangible assets   811  928  1,113  1,280   Other long-term assets 822(14)  801(14)  136  175   Total assets   8,759  6,776  7,162  6,739   Commercial paper   -  -  -  -   Total current liabilities   893  661  677(11)  475   Long-term debt   412(16)  -  -  150   Total liabilities   2,239  1,437  1,242  1,065   Total stockholders' equity   6,520  5,339  5,920   5,674 OTHER DATA           Depreciation and amortization expense $  295 $275(12)  $  428  $   463   Capital expenditures  322  323  213  113 SHARE INFORMATION           Shares used to compute basic earnings per share  1,035  1,038  1,054  1,044   Shares used to compute diluted earnings per share  1,058  1,049  1,071  1,044   Shares outstanding at year-end  1,049  1,026  1,057  1,051 PER SHARE DATA           Market price:      High $   47.68  $  27.58  $  42.00  $  61.25          Low $   15.77  $  12.55  $  19.00  $  21.13   Book value $     6.21  $    5.21  $    5.60  $    5.40 NUMBER OF EMPLOYEES AT YEAR-END    6,226  5,252 4,950  4,459

(Table Continued below)

1999-1997

Years Ended December 31,   1999 1998 1997 TOTAL OPERATING REVENUE   $1,292 $1,053 $936   Product sales   1,039 718 585   Royalties(1)   189 230 241   Contract revenue   64 105 110 TOTAL COSTS AND EXPENSES   $2,730 $  874 $  840   Cost of sales    286(6) 139 103   Research and development    367 396 471   Marketing, general and administrative    367 299 266   Collaboration profit sharing    74 40 -   Write-off of in-process research and development related to acquisition(1)    - - -   Gain on acquisition(1)    - - -   Recurring charges related to redemption and acquisition(2)     198 - -   Special items    1,438(7) - - Other income, net   $   78 $   74 $   74 INCOME (LOSS) DATA           Income (loss) before taxes and cumulative effect of accounting change    $(1,360) $  253 $  170   Income tax (benefit) provision    (203) 71 41   Income (loss) before cumulative effect of accounting change   (1,157) 182 129   Cumulative effect of accounting change, net of tax    - - -   Net income (loss)   (1,157) 182 129 EARNINGS (LOSS) PER SHARE:           Basic: Earnings before cumulative effect of accounting change    $ (1.13) $   0.18 $   0.13     Cumulative effect of accounting change, net of tax    - - -     Net earnings per share   $ (1.13) $   0.18 $   0.13   Diluted: Earnings before cumulative effect of accounting change   $ (1.13) $   0.18 $   0.13     Cumulative effect of accounting change, net of tax    - - -     Net earnings per share   $ (1.13) $   0.18 $   0.13 SELECTED BALANCE SHEET DATA           Cash, cash equivalents, short-term investments, and long-term marketable debt and equity securities    $1,957 $1,605 $1,287   Accounts receivable    233 158 184   Inventories    275 149 116   Property, plant and equipment, net    730 700 683   Goodwill    1,609 - -   Other intangible assets    1,453 65 55   Other long-term assets    206 135 128   Total assets    6,561 2,868 2,507   Commercial paper   - - -   Total current liabilities    503 303 289   Long-term debt    150 150 150   Total liabilities     1,291 524 476   Total stockholders' equity   5,270(8) 2,344 2,031 OTHER DATA           Depreciation and amortization expense    $   281 $   78 $   66   Capital expenditures    95 88 155 SHARE INFORMATION           Shares used to compute basic earnings per share    1,026 1,007 984   Shares used to compute diluted earnings per share    1,026 1,039 1,011   Shares outstanding at year-end    1,032 1,017 994 PER SHARE DATA           Market price:      High    $  11.25 $   9.97 $   7.58         $35.75*              Low    $  9.32 $   7.41 $   6.66         $12.13*       Book value    $    5.10 $   2.30 $   2.04 NUMBER OF EMPLOYEES AT YEAR-END    3,883 3,389 3,242

 

Reconciliation of GAAP to Non-GAAP Net Income (Unaudited)
(In millions, except per share amounts)

Years Ended December 31, 2007 2006 2005 2004 GAAP net income (loss) $2,769 $2,113 $1,279 $785 Royalty revenue(1) (6) - - - Employee stock-based compensation expense(3) under FAS 123R included in the following operating expenses:              Cost of sales 71 - - -      Research and development 153 140 - -      Marketing, general and administrative 179 169 - - Write-off of in-process research and development related to acquisition(1) 77 - - - Gain on acquisition(1) (121) - - - Recurring charges related to redemption and acquisition(2) 132 105 123 145 Special items  54(15)  54(15)  58(15) 37(15) Other Non-GAAP reconciling items  -  - - - Income tax effect(4)  (166)  (191)  (73) (73) Income before cumulative effect of accounting change  3,142  2,390 1,387 894 Cumulative effect of accounting change, net of tax  -  - - - Non-GAAP net income $   3,142 $   2,390 $   1,387 $   894 Non-GAAP earnings per share:      Diluted $   2.94 $   2.23 $   1.28 $   0.83 Non-GAAP weighted average shares used to compute earnings per share:      Diluted 1,068(20) 1,074(20) 1,081 1,079

(Table Continued below)

Years Ended December 31, 2003 2002 2001 2000 1999 GAAP net income (loss) $563 $64 $150 $(74) $(1,157) Royalty revenue(1) - - - - - Employee stock-based compensation expense(3) under FAS 123R included in the following operating expenses:                Cost of sales - - - - -      Research and development - - - - -      Marketing, general and administrative - - - - - Write-off of in-process research and development related to acquisition(1) - - - - - Gain on acquisition(1) - - - - - Recurring charges related to redemption and acquisition(2) 154 156(12) 322 375 198 Special items  (113)(15)  544(13)  - -  1,438(7) Other Non-GAAP reconciling items  -  - (10)(10) 93(6) 93(6) Income tax effect(4)  (16)  (280)  (64) (127) (325) Income before cumulative effect of accounting change  588  484 398 267  247 Cumulative effect of accounting change, net of tax  47(16)  - 6(10) 58(9)  - Non-GAAP net income $   635 $  484 $  404 $  325 $  247 Non-GAAP earnings per share:      Diluted $   0.60 $  0.46 $   0.38 $   0.30 $   0.23 Non-GAAP weighted average shares used to compute earnings per share: