Exhibit 99.2
SCHERING-PLOUGH CORPORATION
STATEMENTS OF CONSOLIDATED OPERATIONS
(DOLLARS IN MILLIONS, EXCEPT EPS)
(UNAUDITED)
2004
----------------------------------------------------------------------------------
1st 2nd 6 3rd 9 4th 4th Qtr. 12 Mos.
Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year vs vs
$ $ $ $ $ $ $ 4th Qtr. 12 Mos.
----------------------------------------------------------------------------------
Net Sales 1,963 2,147 4,110 1,978 6,088 2,184 8,272 12% (1%)
Cost of Sales 740 790 1,530 711 2,241 829 3,070 12% 8%
----------------------------------------------------------------------------------
Gross Margin 1,223 1,357 2,580 1,267 3,847 1,355 5,202 12% (5%)
Total SG&A 914 979 1,893 892 2,785 1,026 3,811 25% 10%
Research &
Development 1/ 372 451 824 378 1,201 406 1,607 3% 9%
Other, Net 36 43 78 34 112 33 146 N/M N/M
Special Charges 2/ 70 42 112 26 138 15 153 (93%) (74%)
Equity (Income)/Loss
from Cholesterol
Joint Venture (78) (77) (154) (95) (249) (98) (347) N/M N/M
---------------------------------------------------------------------------------
(Loss)/Income before
Income Taxes (91) (81) (173) 32 (140) (27) (168) 87% N/M
Income Tax (Benefit)/
Expense 3/ (18) (16) (35) 6 (28) 807 779 N/M N/M
---------------------------------------------------------------------------------
Net (Loss)/Income (73) (65) (138) 26 (112) (834) (947) N/M N/M
=================================================================================
Dividends on Preferred
Shares - - - 12 12 22 34 N/M N/M
Net (Loss)/Income
Available to Common
Shareholders (73) (65) (138) 14 (124) (856) (981) N/M N/M
=================================================================================
Diluted (Loss)/Earnings
per Common Share (0.05) (0.04) (0.09) 0.01 (0.08) (0.58) (0.67) N/M N/M
=================================================================================
Avg. Shares Outstanding
- Diluted 1,471 1,472 1,471 1,475 1,472 1,473 1,472
Actual Shares
Outstanding 1,472 1,472 1,472 1,472 1,472 1,474 1,474
-------------------------------------------------------------
Ratios To Net Sales
Net Sales 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Cost of Sales 37.7% 36.8% 37.2% 35.9% 36.8% 37.9% 37.1%
Gross Margin 62.3% 63.2% 62.8% 64.1% 63.2% 62.1% 62.9%
Total SG&A 46.6% 45.6% 46.1% 45.1% 45.7% 47.0% 46.1%
Research &
Development 19.0% 21.0% 20.0% 19.1% 19.7% 18.6% 19.4%
(Loss)/Income Before
Income Taxes (4.6%) (3.8%) (4.2%) 1.6% (2.3%) (1.3%) (2.0%)
Income Taxes (Benefit)/
Expense (0.9%) (0.8%) (0.8%) 0.3% (0.5%) 37.0% 9.4%
Net (Loss)/Income (3.7%) (3.0%) (3.4%) 1.3% (1.8%) (38.2%) (11.4%)
-------------------------------------------------------------
2003
------------------------------------------------------------
1st 2nd 6 3rd 9 4th
Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year
$ $ $ $ $ $ $
------------------------------------------------------------
Net Sales 2,082 2,308 4,389 1,998 6,386 1,948 8,334
Cost of Sales 658 784 1,442 652 2,094 739 2,833
------------------------------------------------------------
Gross Margin 1,424 1,524 2,947 1,346 4,292 1,209 5,501
Total SG&A 843 938 1,780 873 2,653 821 3,474
Research &
Development 1/ 322 369 691 382 1,074 395 1,469
Other, Net 13 (4) 8 41 49 10 59
Special Charges 2/ - 20 20 350 370 229 599
Equity (Income)/Loss
from Cholesterol
Joint Venture 30 (26) 4 (24) (21) (33) (54)
------------------------------------------------------------
(Loss)/Income before
Income Taxes 216 227 444 (276) 167 (213) (46)
Income Tax (Benefit)/
Expense 43 45 89 (11) 77 (32) 46
------------------------------------------------------------
Net (Loss)/Income 173 182 355 (265) 90 (181) (92)
============================================================
Dividends on Preferred
Shares - - - - - - -
Net (Loss)/Income
Available to Common
Shareholders 173 182 355 (265) 90 (181) (92)
============================================================
Diluted (Loss)/Earnings
per Common Share 0.12 0.12 0.24 (0.18) 0.06 (0.12) (0.06)
============================================================
Avg. Shares Outstanding
- Diluted 1,470 1,471 1,471 1,469 1,470 1,470 1,469
Actual Shares
Outstanding 1,469 1,469 1,469 1,469 1,469 1,471 1,471
------------------------------------------------------------
Ratios To Net Sales
Net Sales 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Cost of Sales 31.6% 34.0% 32.9% 32.6% 32.8% 37.9% 34.0%
Gross Margin 68.4% 66.0% 67.1% 67.4% 67.2% 62.1% 66.0%
Total SG&A 40.5% 40.6% 40.6% 43.7% 41.5% 42.1% 41.7%
Research &
Development 15.5% 16.0% 15.8% 19.1% 16.8% 20.3% 17.6%
(Loss)/Income Before
Income Taxes 10.4% 9.8% 10.1% (13.8%) 2.6% (11.0%) (0.6%)
Income Taxes (Benefit)/
Expense 2.1% 2.0% 2.0% (0.6%) 1.2% (1.6%) 0.5%
Net (Loss)/Income 8.3% 7.9% 8.1% (13.3%) 1.4% (9.3%) (1.1%)
-----------------------------------------------------------
Note: The Company noted that it incurs substantial costs, such as selling,
general and administrative costs, that are not reflected in the "Equity income
from cholesterol joint venture" and are borne by the overall cost structure of
Schering-Plough.
1/ Research and development costs includes an $80 million upfront payment
recognized in the second quarter of 2004 in conjunction with the licensing
from Toyama Chemical Company Ltd. of Garenoxacin, a Quinolone antibiotic
in development.
2/ Special Charges for the fourth quarter ended December 31, 2004 included $8
million of employee termination costs and $7 million of closure costs associated
with the exit from a small European research-and-development facility. Special
charges for the twelve months ended December 31, 2004 included $119 million of
employee termination costs, as well as $27 million of asset impairment charges
and $7 million of closure costs primarily related to the aforementioned
research-and-development facility.
Special Charges for 2003 included $20 million of asset impairment charges
related to manufacturing facility assets recorded in the second quarter, the
$350 million provision to increase litigation reserves recorded in the third
quarter and $179 million of employee termination costs, primarily related to the
VERP in the United States, as well as $50 million of asset impairment charges
related to certain fixed and intangible assets recorded in the fourth quarter.
3/ In the fourth quarter ended December 31, 2004, the Company recorded the
impact of the intended repatriation of funds under the American Jobs Creation
Act. For the full year 2003, the effective tax rate was 15% excluding the $350
million non-tax deductible provision to increase litigation reserves.
All figures rounded. Totals may not add due to rounding. N/M - not a meaningful
percentage.
Page 1
SCHERING-PLOUGH CORPORATION
CONSOLIDATED SALES
(DOLLARS IN MILLIONS)
2004
-------------------------------------------------------------------
1st 2nd 6 3rd 9 4th 4th Qtr. 12 Mos.
Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year vs vs
$ $ $ $ $ $ $ 4th Qtr. 12 Mos.
- -------------------------------------------------------------------------------------------
PRESCRIPTION PHARM: 1,481 1,644 3,125 1,556 4,681 1,737 6,417 15% (3%)
U.S. 411 495 906 518 1,424 584 2,007 37% (16%)
International 1,070 1,150 2,220 1,037 3,257 1,153 4,410 7% 4%
- -------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------
CONSUMER HEALTH CARE: 312 317 629 239 868 217 1,085 (4%) 6%
OTC: 157 150 306 150 456 121 578 (17%) (2%)
OTC Claritin * 117 117 234 110 344 75 419 (22%) (3%)
Other OTC 40 32 72 41 112 46 159 (8%) 2%
FOOT CARE: 76 89 166 86 252 79 331 16% 13%
--- ----
Sun Care: 79 78 157 3 160 17 176 68% 20%
--- ----
- -------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------
Animal Health: 170 186 356 183 539 230 770 8% 10%
---- ----
U.S. 41 36 77 56 133 61 194 (10%) (11%)
International 129 150 279 127 406 169 575 16% 20%
---- ----
- -------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------
TOTAL CONSOLIDATED: 1,963 2,147 4,110 1,978 6,088 2,184 8,272 12% (1%)
----- ----- ----- ----- ----- ----- -----
U.S. 738 827 1,565 800 2,365 854 3,219 20% (10%)
International 1,225 1,320 2,545 1,178 3,723 1,330 5,053 8% 6%
----- -----
- -------------------------------------------------------------------------------------------
2003
-------------------------------------------------
1st 2nd 6 3rd 9 4th
Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year
$ $ $ $ $ $ $
- -------------------------------------------------------------------------
PRESCRIPTION PHARM: 1,646 1,871 3,517 1,585 5,101 1,509 6,611
U.S. 643 757 1,401 549 1,950 426 2,376
International 1,003 1,113 2,116 1,035 3,151 1,083 4,235
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
CONSUMER HEALTH CARE: 293 266 559 243 802 225 1,026
OTC: 157 135 291 149 441 147 588
OTC Claritin * 129 97 225 111 336 97 432
Other OTC 28 38 66 38 105 50 156
FOOT CARE: 62 83 145 80 224 68 292
Sun Care: 74 48 123 14 137 10 146
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
Animal Health: 143 171 313 170 483 214 697
U.S. 45 49 94 57 150 68 218
International 98 122 220 113 333 146 479
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
TOTAL CONSOLIDATED: 2,082 2,308 4,389 1,998 6,386 1,948 8,334
----- ----- ----- ----- ----- ----- ------
U.S. 965 1,047 2,012 836 2,848 712 3,559
International 1,116 1,261 2,378 1,162 3,539 1,236 4,775
- -------------------------------------------------------------------------
* Includes net sales of Claritin in Canada.
Notes: Certain prior period amounts have been reclassified to conform to the
current year presentation.
All figures rounded. Totals may not add due to rounding.
N/M - not a meaningful percentage.
Page 2
SCHERING-PLOUGH CORPORATION
PRESCRIPTION PHARMACEUTICAL SALES - KEY PRODUCT SALES
(DOLLARS IN MILLIONS)
GLOBAL PRESCRIPTION PHARM U.S. INTERNATIONAL
------------------------- --------------------------- --------------------------
2004 2003 2004 2003 2004 2003
------------- -------------- --------------
4th 4th 4th Qtr. 4th 4th 4th Qtr. 4th 4th 4th Qtr.
Qtr. Qtr. vs Qtr. Qtr. vs Qtr. Qtr. vs
$ $ 4th Qtr. $ $ 4th Qtr. $ $ 4th Qtr.
------------------------- --------------------------- --------------------------
PRESCRIPTION PHARM: 1,737 1,509 15% 584 426 37% 1,153 1,083 7%
Remicade 212 159 33% -- -- -- 212 159 33%
Clarinex / Aerius 162 133 22% 107 93 15% 55 40 38%
Temodar 150 87 72% 79 39 100% 72 48 49%
Nasonex 145 132 10% 81 78 5% 64 55 17%
PEG-Intron 138 162 (15%) 42 76 (45%) 96 85 12%
Integrilin 81 46 75% 74 40 86% 7 6 8%
Claritin Rx 1) 80 81 (1%) -- -- -- 80 81 (1%)
Intron A 79 107 (26%) 29 37 (22%) 50 70 (28%)
Subutex 50 41 21% -- -- -- 50 41 21%
Rebetol 49 100 (51%) -- 18 N/M 57 81 (29%)
Avelox 2) 44 -- N/M 44 -- N/M -- -- N/M
Cipro 2) 43 -- N/M 43 -- N/M -- -- N/M
Elocon 42 33 27% 9 3 N/M 32 30 10%
Caelyx 40 32 25% -- -- -- 40 32 25%
------------------------- --------------------------- --------------------------
1) Includes international net sales of Claritin Rx only. Canadian sales of
Claritin are reported in the OTC Claritin line within Consumer Health Care.
Prior periods have been reclassified accordingly.
2) Includes net sales in Puerto Rico
Notes: Global cholesterol franchise net sales totaled $403 million in the 2004
fourth quarter consisting of Zetia net sales of $328 million and
Vytorin net sales of $75 million.
Global cholesterol franchise net sales totaled $165 million in the 2003
fourth quarter, which consisted solely of net sales of Zetia.
U.S. net sales of Zetia/Vytorin were $333 million in the 2004 fourth
quarter, consisting of $274 million of Zetia net sales and $59 million
Vytorin net sales.
Certain prior period amounts have been reclassified to conform to the
current year presentation.
All figures rounded. Totals may not add due to rounding.
N/M - not a meaningful percentage.
SCHERING-PLOUGH CORPORATION
GLOBAL PRESCRIPTION PHARMACEUTICAL SALES - KEY PRODUCT SALES
(DOLLARS IN MILLIONS)
2004 2003
--------------------------------------------------------------------------------------------------------------------
1st 2nd 6 3rd 9 4th 1st 2nd 6 3rd 9 4th 4th Qtr. 12 Mos.
Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year vs vs
$ $ $ $ $ $ $ $ $ $ $ $ $ $ 4th Qtr. 12 Mos.
--------------------------------------------------------------------------------------------------------------------
GLOBAL
PRESCRIPTION
PHARM: 1,481 1,644 3,125 1,556 4,681 1,737 6,417 1,646 1,871 3,517 1,585 5,101 1,509 6,611 15% (3%)
Remicade 165 182 347 188 535 212 746 114 126 240 142 382 159 540 33% 38%
Clarinex /
Aerius 130 226 356 175 530 162 692 173 219 392 169 561 133 694 22% 0%
Temodar 86 102 188 121 309 150 459 59 87 146 90 237 87 324 72% 42%
Nasonex 140 156 296 153 449 145 594 79 175 254 114 368 132 500 10% 19%
PEG-Intron 148 144 293 132 425 138 563 221 247 469 172 641 162 802 (15%) (30%)
Integrilin 73 78 151 94 245 81 325 89 92 181 79 260 46 306 75% 6%
Claritin
Rx 1) 91 82 173 67 240 80 321 89 90 179 68 247 81 328 (1%) (2%)
Intron A 69 89 158 81 239 79 318 74 125 199 103 302 107 409 (26%) (22%)
Subutex 44 47 91 45 136 50 185 31 36 66 37 103 41 144 21% 29%
Rebetol 99 88 187 52 239 49 287 219 196 415 125 540 100 639 (51%) (55%)
Avelox 2) - - - - - 44 44 - - - - - - - N/M N/M
Cipro 2) - - - - - 43 43 - - - - - - - N/M N/M
Elocon 38 46 84 42 127 42 168 39 41 80 41 121 33 154 27% 9%
Caelyx 34 35 70 39 109 40 150 22 26 49 30 78 32 111 25% 35%
--------------------------------------------------------------------------------------------------------------------
1) Includes international net sales of Claritin Rx only. Canadian net sales of
Claritin are reported in the OTC Claritin line within Consumer Health Care.
Prior periods have been reclassified accordingly.
2) Includes net sales in Puerto Rico.
Notes: Global cholesterol franchise net sales, which include Zetia and Vytorin,
totaled $403 million in the 2004 fourth quarter and $1.2 billion for the
2004 year compared with net sales of $165 million and $471 million,
respectively, in 2003. Global net sales of Zetia totaled $328 million in
the 2004 fourth quarter and $1.1 billion for the 2004 year compared with
net sales of $165 million and $471 million, respectively in 2003. Global
net sales of Vytorin totaled $75 million in the 2004 Fourth Quarter and
$131 million for the 2004 year.
U.S. net sales of Zetia and Vytorin were $333 million in the 2004 fourth
quarter, consisting of $274 million of Zetia net sales and $59 million of
Vytorin net sales.
Certain prior period amounts have been reclassified to conform to the
current year presentation.
All figures rounded. Totals may not add due to rounding.
N/M - not a meaningful percentage.
SCHERING-PLOUGH CORPORATION
U.S. PHARMACEUTICAL SALES - KEY PRODUCT SALES
(DOLLARS IN MILLIONS)
2004 2003
----------------------------------------------------------------------------------------------------------
1st 2nd 6 3rd 9 4th 1st 2nd 6 3rd 9 4th 4th Qtr. 12 Mos.
Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year vs vs
$ $ $ $ $ $ $ $ $ $ $ $ $ $ 4th Qtr. 12 Mos.
----------------------------------------------------------------------------------------------------------
TOTAL U.S. PHARM: 411 495 906 518 1,424 584 2,007 643 757 1,401 549 1,950 426 2,376 37% (16%)
Clarinex / Aerius 69 126 195 118 313 107 420 133 144 277 128 405 93 498 15% (16%)
Temodar 37 45 82 60 142 79 220 26 48 73 47 120 39 159 100% 39%
Nasonex 82 85 167 104 271 81 353 34 115 149 74 223 78 301 5% 17%
PEG-Intron 63 50 113 49 163 42 205 126 146 272 85 358 76 434 (45%) (53%)
Integrilin 68 72 139 88 228 74 301 84 87 171 73 244 40 284 86% 6%
Intron A 18 33 51 30 81 29 109 15 54 69 38 107 37 144 (22%) (24%)
Rebetol 31 23 53 - 54 - 45 136 102 238 50 288 18 306 N/M (85%)
Avelox 1) - - - - - 44 44 - - - - - - - N/M N/M
Cipro 1) - - - - - 43 43 - - - - - - - N/M N/M
Elocon 7 12 19 12 31 9 40 10 11 21 12 33 3 37 N/M 9%
----------------------------------------------------------------------------------------------------------
1) Includes net sales in Puerto Rico.
Notes: U.S. net sales of Zetia and Vytorin were $333 million in the 2004 fourth
quarter, consisting of $274 million of Zetia net sales and $59 million
of Vytorin net sales.
U.S. net sales of Zetia and Vytorin for year-to-date 2004 were $1.0
billion consisting of $910 million of Zetia and $102 million of Vytorin
net sales.
All figures rounded. Totals may not add due to rounding.
N/M - not a meaningful percentage.
SCHERING-PLOUGH CORPORATION
INTERNATIONAL PHARMACEUTICAL SALES - KEY PRODUCT SALES
(DOLLARS IN MILLIONS)
2004 2003
-------------------------------------------------------------------------------------------------------------------
1st 2nd 6 3rd 9 4th 1st 2nd 6 3rd 9 4th 4th Qtr. 12 Mos.
Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year vs vs
$ $ $ $ $ $ $ $ $ $ $ $ $ $ 4th Qtr. 12 Mos.
-------------------------------------------------------------------------------------------------------------------
TOTAL
INTERNATIONAL
PHARM: 1,070 1,150 2,220 1,037 3,257 1,153 4,410 1,003 1,113 2,116 1,035 3,151 1,083 4,235 7% 4%
Remicade 165 182 347 188 535 212 746 114 126 240 142 382 159 540 33% 38%
Clarinex /
Aerius 61 100 161 57 218 55 272 41 75 116 41 157 40 196 38% 39%
Temodar 49 57 106 61 168 72 239 34 40 73 44 117 48 165 49% 45%
Nasonex 58 71 129 48 178 64 242 44 60 105 39 144 55 199 17% 22%
PEG-Intron 85 94 179 83 262 96 358 95 101 196 87 283 85 368 12% (3%)
Integrilin 5 6 12 5 17 7 24 5 5 10 6 16 6 22 8% 9%
Claritin Rx 91 82 173 67 240 80 321 89 90 179 68 247 81 328 (1%) (2%)
Intron A 51 56 107 51 158 50 208 59 71 130 65 195 70 265 (28%) (21%)
Subutex 44 47 91 45 136 50 185 31 36 66 37 103 41 144 21% 29%
Rebetol 68 65 133 52 185 57 242 83 94 177 75 252 81 333 (29%) (27%)
Elocon 31 34 65 31 96 32 128 29 30 58 29 88 30 117 10% 10%
Caelyx 34 35 70 39 109 40 150 22 26 49 30 78 32 111 25% 35%
-------------------------------------------------------------------------------------------------------------------
Notes: International cholesterol franchise net sales totaled $70 million
in the 2004 fourth quarter, consisting of $54 million of Zetia net sales
and $16 million of Vytorin net sales.
International cholesterol franchise net sales for 2004 were $171
million, consisting of $142 million of Zetia net sales and $29 million
of Vytorin net sales.
All figures rounded. Totals may not add due to rounding.
N/M - not a meaningful percentage.
SCHERING-PLOUGH CORPORATION
MISCELLANEOUS DATA
(DOLLARS IN MILLIONS)
2004 2003
-------------------------------------------------------------------------------------------------
1st 2nd 6 3rd 9 4th 1st 2nd 6 3rd 9 4th
Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year
$ $ $ $ $ $ $ $ $ $ $ $ $ $
-------------------------------------------------------------------------------------------------
GEOGRAPHIC SALES
U.S. 738 827 1,565 800 2,365 854 3,219 965 1,047 2,012 836 2,848 712 3,559
EUROPE AND CANADA 874 972 1,846 820 2,666 929 3,595 777 935 1,711 849 2,560 849 3,410
LATIN AMERICA 174 182 356 204 560 223 782 171 163 334 184 517 199 716
PACIFIC AREA AND ASIA 177 166 343 154 497 178 676 169 163 332 129 461 188 649
CONSOLIDATED SALES 1,963 2,147 4,110 1,978 6,088 2,184 8,272 2,082 2,308 4,389 1,998 6,386 1,948 8,334
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
-------------------------------------------------------------------------------------------------
2004 2003
--------------------------------------------------------------------------------------------------
1st 2nd 6 3rd 9 4th 1st 2nd 6 3rd 9 4th
Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year
$ $ $ $ $ $ $ $ $ $ $ $ $ $
--------------------------------------------------------------------------------------------------
CONSOLIDATED SALES
GROWTH RATES:
As Reported (6%) (7%) (6%) (1%) (5%) 12% (1%) (19%) (19%) (19%) (17%) (18%) (18%) (18%)
Excluding Exchange (12%) (10%) (11%) (4%) (9%) 8% (5%) (23%) (24%) (24%) (21%) (23%) (24%) (23%)
OTHER, NET
Interest Income $14 $15 $29 $20 $50 $31 $80 $13 $15 $28 $9 $37 $20 $57
Interest Expense (48) (43) (91) (39) (130) (38) (168) (13) (12) (25) (24) (49) (32) (81)
FX Gains/(Losses) (1) (4) (4) 0 (4) (1) (5) (1) - (1) 1 (1) - (1)
Other Income/(Expense) (1) (11) (12) (15) (28) (25) (53) (12) 1 (10) (27) (36) 2 (34)
--- ---- ---- ---- ---- ---- ---- ---- -- ---- ---- ---- -- ----
Total - Other, Net ($36) ($43) ($78) ($34) ($112) ($33) ($146) ($13) $4 ($8) ($41) ($49) ($10) ($59)
EFFECTIVE TAX RATE 20% 20% 20% 20% 20% * * 20% 20% 20% ** ** 15% **
--------------------------------------------------------------------------------------------------
* In the 2004 fourth quarter, the company recorded the tax impact of the
intended repatriation of funds under the American Job Creations Act.
** In the 2003 third quarter, the company reduced its estimate of the 2003
annual effective tax rate to 15% from 20% on income, excluding the $350
million non-tax deductible provision to increase litigation reserves.
Note: All figures rounded. Totals may not add due to rounding.
N/M - not a meaningful percentage.
Alex Kelly 908-298-7450
Janet M. Barth 908-298-7417