GENENTECH, INC. |
CONSOLIDATED STATEMENTS OF INCOME |
(In millions, except per share amounts) |
(Unaudited) |
Three Months | Year | |||||||||||||||
Ended December 31, | Ended December 31, | |||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
Revenues: | ||||||||||||||||
Product sales | $ | 2,349 | $ | 2,244 | $ | 9,443 | $ | 7,640 | ||||||||
Royalties | 558 | 389 | 1,984 | 1,354 | ||||||||||||
Contract revenue | 63 | 81 | 297 | 290 | ||||||||||||
Total operating revenues | 2,970 | 2,714 | 11,724 | 9,284 | ||||||||||||
Costs and expenses: | ||||||||||||||||
Cost of sales (includes employee stock-based compensation expense: three months–2007–$22; 2006–$0; full year–2007–$71; 2006–$0) | 344 | 338 | 1,571 | 1,181 | ||||||||||||
Research and development (includes employee stock-based compensation expense: three months–2007–$39; 2006–$38; full year–2007–$153; 2006–$140) | 618 | 555 | 2,446 | 1,773 | ||||||||||||
Marketing, general and administrative (includes employee stock-based compensation expense: three months–2007–$42; 2006–$45; full year–2007–$179; 2006–$169) | 692 | 600 | 2,256 | 2,014 | ||||||||||||
Collaboration profit sharing | 275 | 270 | 1,080 | 1,005 | ||||||||||||
In-process research and development(1) | - | - | 77 | - | ||||||||||||
Gain on acquisition(1) | - | - | (121 | ) | - | |||||||||||
Recurring charges related to redemption and acquisition | 43 | 26 | 132 | 105 | ||||||||||||
Special items: litigation-related | 14 | 14 | 54 | 54 | ||||||||||||
Total costs and expenses | 1,986 | 1,803 | 7,495 | 6,132 | ||||||||||||
Operating income | 984 | 911 | 4,229 | 3,152 | ||||||||||||
Other income (expense): | ||||||||||||||||
Interest and other income, net(2) | 40 | 77 | 273 | 325 | ||||||||||||
Interest expense | (22 | ) | (18 | ) | (76 | ) | (74 | ) | ||||||||
Total other income, net | 18 | 59 | 197 | 251 | ||||||||||||
Income before taxes | 1,002 | 970 | 4,426 | 3,403 | ||||||||||||
Income tax provision | 370 | 376 | 1,657 | 1,290 | ||||||||||||
Net income | $ | 632 | $ | 594 | $ | 2,769 | $ | 2,113 | ||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 0.60 | $ | 0.56 | $ | 2.63 | $ | 2.01 | ||||||||
Diluted | $ | 0.59 | $ | 0.55 | $ | 2.59 | $ | 1.97 | ||||||||
Weighted average shares used to compute earnings per share: | ||||||||||||||||
Basic | 1,053 | 1,054 | 1,053 | 1,053 | ||||||||||||
Diluted | 1,068 | 1,072 | 1,069 | 1,073 |
________________________
(1) | Represents one-time items related to our acquisition of Tanox, Inc. in the third quarter of 2007. |
(2) | "Interest and other income, net" includes interest income, net realized gains from the sale of certain biotechnology equity securities and write-downs for other-than-temporary impairments in the fair value of certain debt and biotechnology equity securities. For further detail, refer to our web site at www.gene.com. |
GENENTECH, INC. |
SELECTED CONSOLIDATED FINANCIAL DATA |
(In millions) |
(Unaudited) |
December 31, | December 31, | |||||||
2007 | 2006 | |||||||
Selected consolidated balance sheet data: | ||||||||
Cash, cash equivalents and short-term investments | $ | 3,975 | $ | 2,493 | ||||
Accounts receivable - product sales, net | 847 | 965 | ||||||
Accounts receivable - royalties, net | 620 | 453 | ||||||
Accounts receivable - other, net | 299 | 248 | ||||||
Inventories | 1,493 | 1,178 | ||||||
Long-term marketable debt and equity securities | 2,090 | 1,832 | ||||||
Property, plant and equipment, net | 4,986 | 4,173 | ||||||
Goodwill | 1,577 | 1,315 | ||||||
Other intangible assets | 1,168 | 476 | ||||||
Other long-term assets | 366 | 1,342 | ||||||
Total assets | 18,940 | 14,842 | ||||||
Total current liabilities(1) | 3,918 | 2,010 | ||||||
Long-term debt(2) | 2,402 | 2,204 | ||||||
Total liabilities | 7,035 | 5,364 | ||||||
Total stockholders' equity | 11,905 | 9,478 |
Year Ended December 31, | ||||||||
2007 | 2006 | |||||||
Selected consolidated cash flow data: | ||||||||
Capital expenditures(2) | $ | 977 | $ | 1,214 | ||||
Total depreciation and amortization expense | 492 | 407 |
________________________
(1) | Certain reclassifications have been made at December 31, 2006 to conform to the December 31, 2007 presentation. |
(2) | Capital expenditures exclude approximately $203 million at December 31, 2007 and $104 million at December 31, 2006 in capitalized costs related to our accounting for construction projects for which we are considered to be the owner during the construction period. We have recognized related amounts as a construction financing obligation in long-term debt. The balances in long-term debt related to the construction financing obligation are $399 million at December 31, 2007 and $216 million at December 31, 2006. |