EXHIBIT 99.2
GENENTECH, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share amounts)
(Unaudited)
Three Months | Six Months | |||||||||||||||
Ended June 30, | Ended June30, | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
Revenues: | ||||||||||||||||
Product sales | $ | 2,536 | $ | 2,443 | $ | 4,915 | $ | 4,773 | ||||||||
Royalties | 629 | 484 | 1,244 | 903 | ||||||||||||
Contract revenue | 71 | 77 | 140 | 171 | ||||||||||||
Total operating revenues | 3,236 | 3,004 | 6,299 | 5,847 | ||||||||||||
Costs and expenses: | ||||||||||||||||
Cost of sales (includes employee stock-based compensation expense: three months–2008–$18; 2007–$16; six months–2008–$41; 2007–$33) | 441 | 429 | 831 | 821 | ||||||||||||
Research and development (includes employee stock-based compensation expense: three months–2008–$38; 2007–$39; six months–2008–$80; 2007–$77) | 649 | 603 | 1,266 | 1,213 | ||||||||||||
Marketing, general and administrative (includes employee stock-based compensation expense: three months–2008–$41; 2007–$47; six months–2008–$87; 2007–$93) | 559 | 532 | 1,076 | 1,023 | ||||||||||||
Collaboration profit sharing | 313 | 277 | 592 | 529 | ||||||||||||
Recurring charges related to redemption and acquisition | 43 | 26 | 86 | 52 | ||||||||||||
Special items: litigation-related | 2 | 13 | (300 | ) | 26 | |||||||||||
Total costs and expenses | 2,007 | 1,880 | 3,551 | 3,664 | ||||||||||||
Operating income | 1,229 | 1,124 | 2,748 | 2,183 | ||||||||||||
Other income (expense): | ||||||||||||||||
Interest and other income, net(1) | 93 | 75 | 166 | 149 | ||||||||||||
Interest expense | (15 | ) | (17 | ) | (32 | ) | (35 | ) | ||||||||
Total other income, net | 78 | 58 | 134 | 114 | ||||||||||||
Income before taxes | 1,307 | 1,182 | 2,882 | 2,297 | ||||||||||||
Income tax provision | 525 | 435 | 1,118 | 844 | ||||||||||||
Net income | $ | 782 | $ | 747 | $ | 1,764 | $ | 1,453 | ||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 0.74 | $ | 0.71 | $ | 1.68 | $ | 1.38 | ||||||||
Diluted | $ | 0.73 | $ | 0.70 | $ | 1.65 | $ | 1.36 | ||||||||
Weighted average shares used to compute earnings per share: | ||||||||||||||||
Basic | 1,051 | 1,053 | 1,052 | 1,053 | ||||||||||||
Diluted | 1,064 | 1,070 | 1,066 | 1,071 |
(1) | “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)
June 30, | December 31, | |||||||
2008 | 2007 | |||||||
Selected consolidated balance sheet data: | ||||||||
Cash, cash equivalents and short-term investments | $ | 4,505 | $ | 3,975 | ||||
Accounts receivable – product sales, net | 889 | 847 | ||||||
Accounts receivable – royalties, net | 732 | 620 | ||||||
Accounts receivable – other, net | 200 | 299 | ||||||
Inventories | 1,406 | 1,493 | ||||||
Long-term marketable debt and equity securities | 1,832 | 2,090 | ||||||
Property, plant and equipment, net | 5,266 | 4,986 | ||||||
Goodwill | 1,577 | 1,577 | ||||||
Other intangible assets | 1,083 | 1,168 | ||||||
Other long-term assets | 308 | 366 | ||||||
Total assets | 19,119 | 18,940 | ||||||
Total current liabilities | 2,705 | 3,918 | ||||||
Long-term debt(1) | 2,475 | 2,402 | ||||||
Total liabilities | 5,834 | 7,035 | ||||||
Total stockholders’ equity | 13,285 | 11,905 |
Six Months | ||||||||
Ended June 30, | ||||||||
2008 | 2007 | |||||||
Selected consolidated cash flow data: | ||||||||
Capital expenditures(1) | $ | 398 | $ | 475 | ||||
Total depreciation and amortization expense | 285 | 215 |
_________________________
(1) | Capital expenditures exclude approximately $75 million for the six months ended June 30, 2008 and $101 million for the six months ended June 30, 2007 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 $466 million at June 30, 2008 and $399 million at December 31, 2007. |