8-KEarnings & ResultsExhibits & Filings

ABBOTT LABORATORIES 8-K Report, Financial Results (Jan 27, 2015)

Filed January 27, 2015For Securities:ABT

Summary

Abbott Laboratories (ABT) filed an 8-K on January 27, 2015, primarily to report on the presentation of its financial results from continuing operations. This filing is significant as it reflects the impact of recently announced divestitures, specifically the sale of its developed markets branded generics pharmaceutical business to Mylan Inc. and its animal health business to Zoetis. In response to these planned dispositions, Abbott is reporting the results of these divested businesses as discontinued operations. The company has furnished unaudited non-GAAP financial information for the first three quarters of 2014, which presents these businesses as discontinued. This non-GAAP information aims to provide investors with a clearer view of Abbott's standalone operating results from its continuing businesses, excluding specific items. Management intends to use this historical baseline to evaluate future performance and encourages investors to consider these non-GAAP measures alongside GAAP results for a comprehensive understanding.

Key Highlights

  • 1Abbott Laboratories is presenting its financial results reflecting the planned divestiture of its developed markets branded generics pharmaceuticals business and its animal health business.
  • 2These divested businesses are being reported as discontinued operations in the provided financial information.
  • 3The company furnished unaudited non-GAAP financial information for the first three quarters of 2014.
  • 4This non-GAAP data is designed to provide a historical baseline of Abbott's standalone operating results from continuing operations.
  • 5Abbott uses non-GAAP measures to exclude items such as cost reduction initiatives, integration/separation costs, transaction costs, and tax-related adjustments.
  • 6These non-GAAP measures exclude intangible amortization expense to offer greater visibility into core operating results.
  • 7Abbott's management uses these non-GAAP measures internally to assess performance and provides them to investors for better evaluation of ongoing business performance.

Frequently Asked Questions

Abbott is reporting the developed markets branded generics pharmaceuticals business and the animal health business as discontinued operations because the company has entered into agreements to sell these businesses.

The unaudited non-GAAP financial information for the first three quarters of 2014 is intended to provide investors with a historical baseline of Abbott's standalone operating results from continuing operations. It excludes specified items and presents divested businesses as discontinued, allowing for a clearer view of ongoing business performance.

Abbott excludes items such as cost reduction initiatives, integration and separation-related costs, transaction-related costs, philanthropic contributions, benefits from U.S. tax law changes, tax expense associated with repatriation of ex-U.S. earnings, and tax expense adjustments for resolutions of previous tax positions. Intangible amortization expense is also excluded.

No, Abbott cautions investors to consider these non-GAAP financial measures in addition to, and not as a substitute for, financial measures prepared in accordance with U.S. GAAP. The non-GAAP measures are intended to provide additional insight into ongoing performance.