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þ
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the Quarterly Period Ended September 30, 2014
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
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95-1622442
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(State or Other Jurisdiction of
Incorporation or Organization)
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(I.R.S. Employer Identification No.)
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2525 Dupont Drive
Irvine, California
(Address of Principal Executive Offices)
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92612
(Zip Code)
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Large accelerated filer
þ
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Accelerated filer
¨
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Non-accelerated filer
¨
(Do not check if a smaller reporting company)
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Smaller reporting company
¨
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Page
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Three Months Ended
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Nine Months Ended
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September 30,
2014 |
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September 30,
2013 |
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September 30,
2014 |
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September 30,
2013 |
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Revenues:
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Product net sales
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$
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1,790.7
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$
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1,528.4
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$
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5,237.1
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$
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4,537.9
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Other revenues
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26.4
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30.3
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90.3
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78.1
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Total revenues
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1,817.1
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1,558.7
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5,327.4
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4,616.0
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Operating costs and expenses:
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Cost of sales (excludes amortization of intangible assets)
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206.6
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192.2
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633.3
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591.2
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Selling, general and administrative
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714.7
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589.3
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2,092.2
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1,804.0
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Research and development
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288.5
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257.6
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926.2
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772.9
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Amortization of intangible assets
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29.0
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28.8
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84.8
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88.5
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Restructuring charges
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185.5
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0.6
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208.3
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4.9
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Operating income
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392.8
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490.2
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1,382.6
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1,354.5
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Non-operating income (expense):
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Interest income
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2.0
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1.5
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6.2
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5.1
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Interest expense
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(18.4
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)
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(19.4
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)
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(53.8
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)
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(56.8
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)
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Other, net
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43.0
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(15.5
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)
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20.4
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(13.0
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)
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26.6
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(33.4
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)
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(27.2
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)
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(64.7
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)
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Earnings from continuing operations before income taxes
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419.4
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456.8
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1,355.4
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1,289.8
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Provision for income taxes
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106.3
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123.9
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365.4
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329.9
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Earnings from continuing operations
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313.1
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332.9
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990.0
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959.9
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Discontinued operations:
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Earnings from discontinued operations, net of applicable income tax expense of $2.7 million and $6.4 million for the three and nine months ended September 30, 2013, respectively
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—
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5.5
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—
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13.1
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Gain (loss) on sale of discontinued operations, net of applicable income tax expense (benefit) of $0.0 million and $(21.1) million for the three months ended September 30, 2014 and 2013, respectively, and $(0.3) million and $(108.3) million for the nine months ended September 30, 2014 and 2013, respectively
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0.3
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(37.6
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)
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(0.3
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(296.6
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)
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Discontinued operations
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0.3
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(32.1
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(0.3
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(283.5
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Net earnings
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313.4
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300.8
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989.7
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676.4
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Net earnings attributable to noncontrolling interest
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0.9
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1.0
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2.7
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4.2
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Net earnings attributable to Allergan, Inc.
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$
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312.5
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$
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299.8
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$
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987.0
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$
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672.2
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Basic earnings per share attributable to Allergan, Inc. stockholders:
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Continuing operations
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$
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1.05
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$
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1.12
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$
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3.32
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$
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3.22
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Discontinued operations
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—
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(0.11
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—
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(0.95
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Net basic earnings per share attributable to Allergan, Inc. stockholders
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$
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1.05
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$
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1.01
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$
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3.32
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$
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2.27
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Diluted earnings per share attributable to Allergan, Inc. stockholders:
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Continuing operations
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$
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1.03
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$
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1.10
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$
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3.25
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$
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3.17
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Discontinued operations
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—
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(0.10
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—
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(0.94
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)
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Net diluted earnings per share attributable to Allergan, Inc. stockholders
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$
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1.03
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$
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1.00
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$
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3.25
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$
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2.23
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Three Months Ended
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Nine Months Ended
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||||||||||||
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September 30,
2014 |
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September 30,
2013 |
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September 30,
2014 |
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September 30,
2013 |
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Net earnings
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$
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313.4
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$
|
300.8
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$
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989.7
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$
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676.4
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Other comprehensive income (loss), net of tax:
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Foreign currency translation adjustments
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(79.2
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)
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31.0
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(68.2
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)
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(8.1
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)
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Amortization of deferred holding gains on derivatives designated as cash flow hedges included in net earnings, net of income tax benefit of $0.1 million for the three months ended September 30, 2014 and 2013, respectively, and $0.4 million for the nine months ended September 30, 2014 and 2013, respectively
(a)
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(0.2
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)
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(0.2
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)
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(0.6
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)
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(0.6
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)
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Unrealized gain on available-for-sale securities, net of income tax expense of $1.1 million for the three and nine months ended September 30, 2014, respectively
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1.9
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—
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1.9
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—
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|
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Other comprehensive (loss) income
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(77.5
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)
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30.8
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(66.9
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)
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(8.7
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)
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||||
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Total comprehensive income
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235.9
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331.6
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922.8
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667.7
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Comprehensive income attributable to noncontrolling interest
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0.6
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|
|
1.8
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|
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2.6
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3.0
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Comprehensive income attributable to Allergan, Inc.
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$
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235.3
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$
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329.8
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$
|
920.2
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$
|
664.7
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(a)
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Reclassified into "Interest expense" in the unaudited condensed consolidated statements of earnings.
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September 30,
2014 |
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December 31,
2013 |
||||
ASSETS
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|||||||
Current assets:
|
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|
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Cash and equivalents
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$
|
3,910.8
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$
|
3,046.1
|
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Short-term investments
|
274.6
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|
|
603.0
|
|
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Trade receivables, net
|
967.4
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|
|
883.3
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|
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Inventories
|
297.7
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285.3
|
|
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Other current assets
|
653.3
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|
|
493.0
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|
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Assets of discontinued operations
|
—
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|
|
9.0
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|
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Total current assets
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6,103.8
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|
|
5,319.7
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Investments and other assets
|
236.9
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|
|
213.2
|
|
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Deferred tax assets
|
59.4
|
|
|
128.8
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|
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Property, plant and equipment, net
|
1,005.3
|
|
|
923.2
|
|
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Goodwill
|
2,414.0
|
|
|
2,339.4
|
|
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Intangibles, net
|
1,826.4
|
|
|
1,650.0
|
|
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Total assets
|
$
|
11,645.8
|
|
|
$
|
10,574.3
|
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LIABILITIES AND EQUITY
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Current liabilities:
|
|
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|
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|
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Notes payable
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$
|
55.8
|
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$
|
55.6
|
|
Accounts payable
|
283.2
|
|
|
283.2
|
|
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Accrued compensation
|
267.9
|
|
|
269.1
|
|
||
Other accrued expenses
|
960.1
|
|
|
597.5
|
|
||
Income taxes
|
—
|
|
|
38.9
|
|
||
Total current liabilities
|
1,567.0
|
|
|
1,244.3
|
|
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Long-term debt
|
2,088.6
|
|
|
2,098.3
|
|
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Other liabilities
|
871.2
|
|
|
762.2
|
|
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Commitments and contingencies
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Equity:
|
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Allergan, Inc. stockholders’ equity:
|
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|
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Preferred stock, $.01 par value; authorized 5,000,000 shares; none issued
|
—
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|
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—
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|
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Common stock, $.01 par value; authorized 500,000,000 shares; issued 307,605,860 shares as of September 30, 2014 and 307,554,060 shares as of December 31, 2013
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3.1
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|
|
3.1
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|
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Additional paid-in capital
|
3,249.7
|
|
|
3,032.8
|
|
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Accumulated other comprehensive loss
|
(293.4
|
)
|
|
(226.6
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)
|
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Retained earnings
|
5,411.9
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|
|
4,646.7
|
|
||
|
8,371.3
|
|
|
7,456.0
|
|
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Less treasury stock, at cost (9,992,377 shares as of September 30, 2014 and 9,947,345 shares as of December 31, 2013)
|
(1,260.6
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)
|
|
(992.8
|
)
|
||
Total stockholders’ equity
|
7,110.7
|
|
|
6,463.2
|
|
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Noncontrolling interest
|
8.3
|
|
|
6.3
|
|
||
Total equity
|
7,119.0
|
|
|
6,469.5
|
|
||
Total liabilities and equity
|
$
|
11,645.8
|
|
|
$
|
10,574.3
|
|
|
Nine Months Ended
|
||||||
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September 30,
2014 |
|
September 30,
2013 |
||||
Cash flows from operating activities:
|
|
|
|
||||
Net earnings
|
$
|
989.7
|
|
|
$
|
676.4
|
|
Non-cash items included in net earnings:
|
|
|
|
|
|
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Depreciation and amortization
|
185.0
|
|
|
195.1
|
|
||
Amortization of original issue discount and debt issuance costs
|
2.1
|
|
|
1.9
|
|
||
Amortization of net realized gain on interest rate swaps
|
(11.2
|
)
|
|
(10.8
|
)
|
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Deferred income tax benefit
|
(13.4
|
)
|
|
(134.1
|
)
|
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Loss on disposal and impairment of assets
|
8.7
|
|
|
3.9
|
|
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Unrealized gain on derivative instruments
|
(19.0
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)
|
|
(4.3
|
)
|
||
Expense of share-based compensation plans
|
107.1
|
|
|
84.6
|
|
||
Loss on sale of discontinued operations
|
—
|
|
|
404.9
|
|
||
(Income) expense from changes in fair value of contingent consideration
|
(15.5
|
)
|
|
4.8
|
|
||
Provision for losses on trade receivables in Venezuela
|
37.3
|
|
|
—
|
|
||
Restructuring charges
|
208.3
|
|
|
4.9
|
|
||
Loss on investment
|
—
|
|
|
3.7
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
|
|
||
Trade receivables
|
(144.2
|
)
|
|
(173.4
|
)
|
||
Inventories
|
(24.9
|
)
|
|
(22.6
|
)
|
||
Other current assets
|
(9.5
|
)
|
|
23.2
|
|
||
Other non-current assets
|
(13.5
|
)
|
|
(8.2
|
)
|
||
Accounts payable
|
(5.1
|
)
|
|
22.6
|
|
||
Accrued expenses
|
103.0
|
|
|
58.1
|
|
||
Income taxes
|
(133.5
|
)
|
|
20.4
|
|
||
Other liabilities
|
(17.8
|
)
|
|
29.0
|
|
||
Net cash provided by operating activities
|
1,233.6
|
|
|
1,180.1
|
|
||
|
|
|
|
||||
Cash flows from investing activities:
|
|
|
|
|
|
||
Purchases of short-term investments
|
(1,269.8
|
)
|
|
(644.5
|
)
|
||
Purchase of non-marketable equity investment
|
(10.0
|
)
|
|
—
|
|
||
Acquisitions, net of cash acquired
|
(67.5
|
)
|
|
(892.1
|
)
|
||
Additions to property, plant and equipment
|
(185.4
|
)
|
|
(97.4
|
)
|
||
Additions to capitalized software
|
(12.6
|
)
|
|
(8.6
|
)
|
||
Additions to intangible assets
|
(15.0
|
)
|
|
(0.3
|
)
|
||
Proceeds from maturities of short-term investments
|
1,596.3
|
|
|
380.5
|
|
||
Proceeds from sale of business
|
1.8
|
|
|
—
|
|
||
Proceeds from sale of property, plant and equipment
|
0.3
|
|
|
0.4
|
|
||
Net cash provided by (used in) investing activities
|
38.1
|
|
|
(1,262.0
|
)
|
||
|
|
|
|
||||
Cash flows from financing activities:
|
|
|
|
|
|
||
Dividends to stockholders
|
(44.7
|
)
|
|
(44.6
|
)
|
||
Payments to acquire treasury stock
|
(835.1
|
)
|
|
(649.3
|
)
|
||
Payments of contingent consideration
|
(10.2
|
)
|
|
(11.1
|
)
|
||
Net borrowings (repayments) of notes payable
|
0.2
|
|
|
(11.6
|
)
|
||
Sale of stock to employees
|
388.3
|
|
|
160.1
|
|
||
Excess tax benefits from share-based compensation
|
114.1
|
|
|
33.6
|
|
||
Debt issuance costs
|
—
|
|
|
(4.8
|
)
|
||
Proceeds from issuance of senior notes, net of discount
|
—
|
|
|
598.5
|
|
||
Net cash (used in) provided by financing activities
|
(387.4
|
)
|
|
70.8
|
|
||
|
|
|
|
||||
Effect of exchange rate changes on cash and equivalents
|
(19.6
|
)
|
|
(4.4
|
)
|
||
Net increase (decrease) in cash and equivalents
|
864.7
|
|
|
(15.5
|
)
|
||
Cash and equivalents at beginning of period
|
3,046.1
|
|
|
2,701.8
|
|
||
Cash and equivalents at end of period
|
$
|
3,910.8
|
|
|
$
|
2,686.3
|
|
|
|
|
|
||||
Supplemental disclosure of cash flow information
|
|
|
|
|
|
||
Cash paid for:
|
|
|
|
|
|
||
Interest, net of amount capitalized
|
$
|
59.6
|
|
|
$
|
55.0
|
|
Income taxes, net of refunds
|
$
|
421.0
|
|
|
$
|
290.8
|
|
|
September 30, 2013
|
||||||
|
Three Months
|
|
Nine Months
|
||||
|
(in millions)
|
||||||
Product net sales
|
$
|
29.3
|
|
|
$
|
94.5
|
|
|
|
|
|
||||
Operating costs and expenses:
|
|
|
|
|
|||
Cost of sales (excludes amortization of intangible assets)
|
5.4
|
|
|
15.9
|
|
||
Selling, general and administrative
|
14.4
|
|
|
44.8
|
|
||
Research and development
|
1.3
|
|
|
4.0
|
|
||
Amortization of intangible assets
|
—
|
|
|
10.3
|
|
||
|
|
|
|
||||
Earnings from discontinued operations before income taxes
|
$
|
8.2
|
|
|
$
|
19.5
|
|
|
|
|
|
||||
Earnings from discontinued operations, net of income taxes
|
$
|
5.5
|
|
|
$
|
13.1
|
|
|
|
Employee Severance
|
|
Contract Termination Costs
|
|
Other
|
|
Total
|
||||||||
|
|
(in millions)
|
||||||||||||||
Restructuring charges during the nine month period ended September 30, 2014
|
|
$
|
150.3
|
|
|
$
|
17.1
|
|
|
$
|
17.2
|
|
|
$
|
184.6
|
|
Spending
|
|
(10.5
|
)
|
|
(0.1
|
)
|
|
(4.9
|
)
|
|
(15.5
|
)
|
||||
Balance at September 30, 2014 (included in "Accounts payable," "Other accrued expenses" and "Other liabilities")
|
|
$
|
139.8
|
|
|
$
|
17.0
|
|
|
$
|
12.3
|
|
|
$
|
169.1
|
|
|
|
Employee Severance
|
|
Other
|
|
Total
|
||||||
|
|
(in millions)
|
||||||||||
Restructuring charges during the nine month period ended September 30, 2014
|
|
$
|
20.3
|
|
|
$
|
2.3
|
|
|
$
|
22.6
|
|
Spending
|
|
(13.9
|
)
|
|
(1.5
|
)
|
|
(15.4
|
)
|
|||
Balance at September 30, 2014 (included in "Other accrued expenses")
|
|
$
|
6.4
|
|
|
$
|
0.8
|
|
|
$
|
7.2
|
|
|
September 30, 2014
|
|
December 31, 2013
|
||||||||||||||||
|
Gross
Amount
|
|
Accumulated
Amortization
|
|
Weighted
Average
Amortization
Period
|
|
Gross
Amount
|
|
Accumulated
Amortization
|
|
Weighted
Average
Amortization
Period
|
||||||||
|
(in millions)
|
|
(in years)
|
|
(in millions)
|
|
(in years)
|
||||||||||||
Amortizable Intangible Assets:
|
|
|
|
|
|
|
|
||||||||||||
Developed technology
|
$
|
651.6
|
|
|
$
|
(383.1
|
)
|
|
11.1
|
|
$
|
647.7
|
|
|
$
|
(343.8
|
)
|
|
11.1
|
Customer relationships
|
54.4
|
|
|
(37.0
|
)
|
|
2.7
|
|
54.7
|
|
|
(21.8
|
)
|
|
2.7
|
||||
Licensing
|
190.7
|
|
|
(167.2
|
)
|
|
9.3
|
|
185.8
|
|
|
(164.8
|
)
|
|
9.3
|
||||
Trademarks
|
89.3
|
|
|
(32.8
|
)
|
|
12.4
|
|
89.6
|
|
|
(29.7
|
)
|
|
12.4
|
||||
Technology-related assets
|
336.9
|
|
|
(81.7
|
)
|
|
14.9
|
|
327.5
|
|
|
(66.9
|
)
|
|
14.8
|
||||
Other
|
29.6
|
|
|
(14.5
|
)
|
|
7.6
|
|
30.7
|
|
|
(12.8
|
)
|
|
7.6
|
||||
|
1,352.5
|
|
|
(716.3
|
)
|
|
11.5
|
|
1,336.0
|
|
|
(639.8
|
)
|
|
11.4
|
||||
Unamortizable Intangible Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
In-process research and development
|
1,190.2
|
|
|
—
|
|
|
|
|
953.8
|
|
|
—
|
|
|
|
||||
|
$
|
2,542.7
|
|
|
$
|
(716.3
|
)
|
|
|
|
$
|
2,289.8
|
|
|
$
|
(639.8
|
)
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
2014 |
|
September 30,
2013 |
|
September 30,
2014 |
|
September 30,
2013 |
||||||||
|
(in millions)
|
||||||||||||||
Developed technology
|
$
|
15.6
|
|
|
$
|
14.3
|
|
|
$
|
44.6
|
|
|
$
|
42.9
|
|
Customer relationships
|
5.2
|
|
|
5.1
|
|
|
15.4
|
|
|
15.3
|
|
||||
Licensing
|
0.8
|
|
|
0.7
|
|
|
2.3
|
|
|
6.7
|
|
||||
Trademarks
|
1.1
|
|
|
1.1
|
|
|
3.3
|
|
|
3.3
|
|
||||
Technology-related assets
|
5.6
|
|
|
5.5
|
|
|
16.7
|
|
|
13.9
|
|
||||
Other
|
0.7
|
|
|
2.1
|
|
|
2.5
|
|
|
6.4
|
|
||||
|
$
|
29.0
|
|
|
$
|
28.8
|
|
|
$
|
84.8
|
|
|
$
|
88.5
|
|
|
Specialty
Pharmaceuticals
|
|
Medical
Devices
|
|
Total
|
||||||
|
(in millions)
|
||||||||||
Balance at December 31, 2013
|
$
|
501.2
|
|
|
$
|
1,838.2
|
|
|
$
|
2,339.4
|
|
LiRIS acquisition
|
85.0
|
|
|
—
|
|
|
85.0
|
|
|||
Foreign exchange translation effects
|
(2.0
|
)
|
|
(8.4
|
)
|
|
(10.4
|
)
|
|||
Balance at September 30, 2014
|
$
|
584.2
|
|
|
$
|
1,829.8
|
|
|
$
|
2,414.0
|
|
|
September 30,
2014 |
|
December 31,
2013 |
||||
|
(in millions)
|
||||||
Finished products
|
$
|
192.0
|
|
|
$
|
180.0
|
|
Work in process
|
44.8
|
|
|
44.1
|
|
||
Raw materials
|
60.9
|
|
|
61.2
|
|
||
Total
|
$
|
297.7
|
|
|
$
|
285.3
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
2014 |
|
September 30,
2013 |
|
September 30,
2014 |
|
September 30,
2013 |
||||||||
|
(in millions)
|
||||||||||||||
Cost of sales
|
$
|
2.1
|
|
|
$
|
1.6
|
|
|
$
|
5.8
|
|
|
$
|
5.2
|
|
Selling, general and administrative
|
28.0
|
|
|
18.6
|
|
|
72.0
|
|
|
56.0
|
|
||||
Research and development
|
10.9
|
|
|
7.1
|
|
|
29.3
|
|
|
21.9
|
|
||||
Pre-tax share-based compensation expense
|
41.0
|
|
|
27.3
|
|
|
107.1
|
|
|
83.1
|
|
||||
Income tax benefit
|
13.2
|
|
|
8.6
|
|
|
34.2
|
|
|
26.7
|
|
||||
Net share-based compensation expense
|
$
|
27.8
|
|
|
$
|
18.7
|
|
|
$
|
72.9
|
|
|
$
|
56.4
|
|
|
Three Months Ended
|
||||||||||||||
|
Pension Benefits
|
|
Other Postretirement Benefits
|
||||||||||||
|
September 30,
2014 |
|
September 30,
2013 |
|
September 30,
2014 |
|
September 30,
2013 |
||||||||
|
(in millions)
|
||||||||||||||
Service cost
|
$
|
6.8
|
|
|
$
|
7.1
|
|
|
$
|
0.4
|
|
|
$
|
0.4
|
|
Interest cost
|
13.1
|
|
|
11.5
|
|
|
0.5
|
|
|
0.5
|
|
||||
Expected return on plan assets
|
(13.0
|
)
|
|
(11.2
|
)
|
|
—
|
|
|
—
|
|
||||
Amortization of prior service costs
|
—
|
|
|
—
|
|
|
(0.6
|
)
|
|
(0.7
|
)
|
||||
Recognized net actuarial losses
|
4.7
|
|
|
7.7
|
|
|
0.2
|
|
|
0.4
|
|
||||
Net periodic benefit cost
|
$
|
11.6
|
|
|
$
|
15.1
|
|
|
$
|
0.5
|
|
|
$
|
0.6
|
|
|
Nine Months Ended
|
||||||||||||||
|
Pension Benefits
|
|
Other Postretirement Benefits
|
||||||||||||
|
September 30,
2014 |
|
September 30,
2013 |
|
September 30,
2014 |
|
September 30,
2013 |
||||||||
|
(in millions)
|
||||||||||||||
Service cost
|
$
|
20.6
|
|
|
$
|
21.3
|
|
|
$
|
1.2
|
|
|
$
|
1.3
|
|
Interest cost
|
39.7
|
|
|
34.6
|
|
|
1.7
|
|
|
1.5
|
|
||||
Expected return on plan assets
|
(39.3
|
)
|
|
(33.7
|
)
|
|
—
|
|
|
—
|
|
||||
Amortization of prior service costs
|
(0.1
|
)
|
|
—
|
|
|
(2.0
|
)
|
|
(2.0
|
)
|
||||
Recognized net actuarial losses
|
14.2
|
|
|
23.2
|
|
|
0.6
|
|
|
1.1
|
|
||||
Net periodic benefit cost
|
$
|
35.1
|
|
|
$
|
45.4
|
|
|
$
|
1.5
|
|
|
$
|
1.9
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
September 30,
2014 |
|
September 30,
2013 |
|
September 30,
2014 |
|
September 30,
2013 |
||||||||
|
|
(in millions)
|
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
Net earnings attributable to Allergan, Inc.:
|
|
|
|
|
|
|
|
|
||||||||
Earnings from continuing operations attributable to Allergan, Inc.:
|
|
|
|
|
|
|
|
|
||||||||
Earnings from continuing operations
|
|
$
|
313.1
|
|
|
$
|
332.9
|
|
|
$
|
990.0
|
|
|
$
|
959.9
|
|
Less net earnings attributable to noncontrolling interest
|
|
0.9
|
|
|
1.0
|
|
|
2.7
|
|
|
4.2
|
|
||||
Earnings from continuing operations attributable to Allergan, Inc.
|
|
312.2
|
|
|
331.9
|
|
|
987.3
|
|
|
955.7
|
|
||||
Earnings (loss) from discontinued operations
|
|
0.3
|
|
|
(32.1
|
)
|
|
(0.3
|
)
|
|
(283.5
|
)
|
||||
Net earnings attributable to Allergan, Inc.
|
|
$
|
312.5
|
|
|
$
|
299.8
|
|
|
$
|
987.0
|
|
|
$
|
672.2
|
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average number of shares outstanding
|
|
296.9
|
|
|
296.5
|
|
|
297.5
|
|
|
296.7
|
|
||||
Net shares assumed issued using the treasury stock method for options and non-vested equity shares and share units outstanding during each period based on average market price
|
|
6.5
|
|
|
4.2
|
|
|
6.1
|
|
|
5.2
|
|
||||
Diluted shares
|
|
303.4
|
|
|
300.7
|
|
|
303.6
|
|
|
301.9
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share attributable to Allergan, Inc. stockholders:
|
|
|
|
|
|
|
|
|
|
|
||||||
Continuing operations
|
|
$
|
1.05
|
|
|
$
|
1.12
|
|
|
$
|
3.32
|
|
|
$
|
3.22
|
|
Discontinued operations
|
|
—
|
|
|
(0.11
|
)
|
|
—
|
|
|
(0.95
|
)
|
||||
Net basic earnings per share attributable to Allergan, Inc. stockholders
|
|
$
|
1.05
|
|
|
$
|
1.01
|
|
|
$
|
3.32
|
|
|
$
|
2.27
|
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings per share attributable to Allergan, Inc. stockholders:
|
|
|
|
|
|
|
|
|
|
|
||||||
Continuing operations
|
|
$
|
1.03
|
|
|
$
|
1.10
|
|
|
$
|
3.25
|
|
|
$
|
3.17
|
|
Discontinued operations
|
|
—
|
|
|
(0.10
|
)
|
|
—
|
|
|
(0.94
|
)
|
||||
Net diluted earnings per share attributable to Allergan, Inc. stockholders
|
|
$
|
1.03
|
|
|
$
|
1.00
|
|
|
$
|
3.25
|
|
|
$
|
2.23
|
|
|
September 30, 2014
|
|
December 31, 2013
|
||||||||||||
|
Notional
Principal
|
|
Fair
Value
|
|
Notional
Principal
|
|
Fair
Value
|
||||||||
|
(in millions)
|
||||||||||||||
Foreign currency forward exchange contracts
(Receive U.S. dollar/pay foreign currency)
|
$
|
39.3
|
|
|
$
|
1.1
|
|
|
$
|
35.0
|
|
|
$
|
0.1
|
|
Foreign currency forward exchange contracts
(Pay U.S. dollar/receive foreign currency)
|
38.9
|
|
|
(1.0
|
)
|
|
41.3
|
|
|
0.1
|
|
||||
Foreign currency sold — put options
|
746.5
|
|
|
55.7
|
|
|
560.8
|
|
|
20.2
|
|
|
September 30, 2014
|
|
December 31, 2013
|
||||||||||||
|
Carrying
Amount
|
|
Fair
Value
|
|
Carrying
Amount
|
|
Fair
Value
|
||||||||
|
(in millions)
|
||||||||||||||
Cash and equivalents
|
$
|
3,910.8
|
|
|
$
|
3,910.8
|
|
|
$
|
3,046.1
|
|
|
$
|
3,046.1
|
|
Short-term investments
|
274.6
|
|
|
274.6
|
|
|
603.0
|
|
|
603.0
|
|
||||
Non-current investments:
|
|
|
|
|
|
|
|
||||||||
Marketable equity
|
4.3
|
|
|
4.3
|
|
|
—
|
|
|
—
|
|
||||
Non-marketable equity
|
29.5
|
|
|
29.5
|
|
|
20.8
|
|
|
20.8
|
|
||||
Notes payable
|
55.8
|
|
|
55.8
|
|
|
55.6
|
|
|
55.6
|
|
||||
Long-term debt
|
2,088.6
|
|
|
2,095.8
|
|
|
2,098.3
|
|
|
2,163.8
|
|
|
September 30, 2014
|
||||||||||||||
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
|
(in millions)
|
||||||||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Commercial paper
|
$
|
1,426.1
|
|
|
$
|
—
|
|
|
$
|
1,426.1
|
|
|
$
|
—
|
|
Foreign time deposits
|
130.0
|
|
|
—
|
|
|
130.0
|
|
|
—
|
|
||||
Other cash equivalents
|
2,178.4
|
|
|
—
|
|
|
2,178.4
|
|
|
—
|
|
||||
Available-for-sale securities
|
4.3
|
|
|
4.3
|
|
|
—
|
|
|
—
|
|
||||
Foreign exchange derivative assets
|
55.8
|
|
|
—
|
|
|
55.8
|
|
|
—
|
|
||||
Deferred executive compensation investments
|
111.1
|
|
|
88.9
|
|
|
22.2
|
|
|
—
|
|
||||
|
$
|
3,905.7
|
|
|
$
|
93.2
|
|
|
$
|
3,812.5
|
|
|
$
|
—
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||
Deferred executive compensation liabilities
|
$
|
103.8
|
|
|
$
|
81.6
|
|
|
$
|
22.2
|
|
|
$
|
—
|
|
Contingent consideration liabilities
|
388.8
|
|
|
—
|
|
|
—
|
|
|
388.8
|
|
||||
|
$
|
492.6
|
|
|
$
|
81.6
|
|
|
$
|
22.2
|
|
|
$
|
388.8
|
|
|
|
|
|
|
|
|
|
||||||||
|
December 31, 2013
|
||||||||||||||
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
|
(in millions)
|
||||||||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Commercial paper
|
$
|
2,016.8
|
|
|
$
|
—
|
|
|
$
|
2,016.8
|
|
|
$
|
—
|
|
Foreign time deposits
|
370.3
|
|
|
—
|
|
|
370.3
|
|
|
—
|
|
||||
Other cash equivalents
|
1,080.4
|
|
|
—
|
|
|
1,080.4
|
|
|
—
|
|
||||
Foreign exchange derivative assets
|
20.4
|
|
|
—
|
|
|
20.4
|
|
|
—
|
|
||||
Deferred executive compensation investments
|
100.7
|
|
|
80.4
|
|
|
20.3
|
|
|
—
|
|
||||
|
$
|
3,588.6
|
|
|
$
|
80.4
|
|
|
$
|
3,508.2
|
|
|
$
|
—
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||
Deferred executive compensation liabilities
|
$
|
93.0
|
|
|
$
|
72.7
|
|
|
$
|
20.3
|
|
|
$
|
—
|
|
Contingent consideration liabilities
|
225.2
|
|
|
—
|
|
|
—
|
|
|
225.2
|
|
||||
|
$
|
318.2
|
|
|
$
|
72.7
|
|
|
$
|
20.3
|
|
|
$
|
225.2
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
2014 |
|
September 30,
2013 |
|
September 30,
2014 |
|
September 30,
2013 |
||||||||
|
(in millions)
|
||||||||||||||
Product net sales:
|
|
|
|
|
|
|
|
||||||||
Specialty pharmaceuticals
|
$
|
1,520.0
|
|
|
$
|
1,329.8
|
|
|
$
|
4,405.4
|
|
|
$
|
3,909.3
|
|
Medical devices
|
270.7
|
|
|
198.6
|
|
|
831.7
|
|
|
628.6
|
|
||||
Total product net sales
|
1,790.7
|
|
|
1,528.4
|
|
|
5,237.1
|
|
|
4,537.9
|
|
||||
Other revenues
|
26.4
|
|
|
30.3
|
|
|
90.3
|
|
|
78.1
|
|
||||
Total revenues
|
$
|
1,817.1
|
|
|
$
|
1,558.7
|
|
|
$
|
5,327.4
|
|
|
$
|
4,616.0
|
|
|
|
|
|
|
|
|
|
||||||||
Operating income:
|
|
|
|
|
|
|
|
|
|
||||||
Specialty pharmaceuticals
|
$
|
750.1
|
|
|
$
|
593.4
|
|
|
$
|
2,006.1
|
|
|
$
|
1,652.8
|
|
Medical devices
|
96.4
|
|
|
58.5
|
|
|
272.3
|
|
|
188.2
|
|
||||
Total segments
|
846.5
|
|
|
651.9
|
|
|
2,278.4
|
|
|
1,841.0
|
|
||||
General and administrative expenses, other indirect costs and other adjustments
|
240.8
|
|
|
133.4
|
|
|
607.1
|
|
|
401.2
|
|
||||
Amortization of intangible assets (a)
|
27.4
|
|
|
27.7
|
|
|
80.4
|
|
|
80.4
|
|
||||
Restructuring charges
|
185.5
|
|
|
0.6
|
|
|
208.3
|
|
|
4.9
|
|
||||
Total operating income
|
$
|
392.8
|
|
|
$
|
490.2
|
|
|
$
|
1,382.6
|
|
|
$
|
1,354.5
|
|
(a)
|
Represents amortization of certain identifiable intangible assets related to business combinations and asset acquisitions and related capitalized licensing costs, as applicable.
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
2014 |
|
September 30,
2013 |
|
September 30,
2014 |
|
September 30,
2013 |
||||||||
|
(in millions)
|
||||||||||||||
Specialty Pharmaceuticals:
|
|
|
|
|
|
|
|
||||||||
Eye Care Pharmaceuticals
|
$
|
818.8
|
|
|
$
|
717.1
|
|
|
$
|
2,376.2
|
|
|
$
|
2,108.1
|
|
Botox
®
/Neuromodulators
|
560.1
|
|
|
485.7
|
|
|
1,641.3
|
|
|
1,456.6
|
|
||||
Skin Care and Other
|
141.1
|
|
|
127.0
|
|
|
387.9
|
|
|
344.6
|
|
||||
Total Specialty Pharmaceuticals
|
1,520.0
|
|
|
1,329.8
|
|
|
4,405.4
|
|
|
3,909.3
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Medical Devices:
|
|
|
|
|
|
|
|
|
|
||||||
Breast Aesthetics
|
97.5
|
|
|
91.9
|
|
|
307.2
|
|
|
288.3
|
|
||||
Facial Aesthetics
|
161.4
|
|
|
106.7
|
|
|
487.6
|
|
|
340.3
|
|
||||
Core Medical Devices
|
258.9
|
|
|
198.6
|
|
|
794.8
|
|
|
628.6
|
|
||||
Other
|
11.8
|
|
|
—
|
|
|
36.9
|
|
|
—
|
|
||||
Total Medical Devices
|
270.7
|
|
|
198.6
|
|
|
831.7
|
|
|
628.6
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Total product net sales
|
$
|
1,790.7
|
|
|
$
|
1,528.4
|
|
|
$
|
5,237.1
|
|
|
$
|
4,537.9
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
2014 |
|
September 30,
2013 |
|
September 30,
2014 |
|
September 30,
2013 |
||||||||
|
(in millions)
|
||||||||||||||
Product net sales:
|
|
|
|
|
|
|
|
||||||||
United States
|
$
|
1,143.6
|
|
|
$
|
955.6
|
|
|
$
|
3,285.3
|
|
|
$
|
2,791.9
|
|
Europe
|
337.1
|
|
|
282.6
|
|
|
1,067.4
|
|
|
909.5
|
|
||||
Latin America
|
100.3
|
|
|
104.6
|
|
|
281.8
|
|
|
286.5
|
|
||||
Asia Pacific
|
132.6
|
|
|
117.8
|
|
|
380.7
|
|
|
348.7
|
|
||||
Other
|
77.1
|
|
|
67.8
|
|
|
221.9
|
|
|
201.3
|
|
||||
Total product net sales
|
$
|
1,790.7
|
|
|
$
|
1,528.4
|
|
|
$
|
5,237.1
|
|
|
$
|
4,537.9
|
|
|
September 30,
2014 |
|
December 31,
2013 |
||||
|
(in millions)
|
||||||
Long-lived assets:
|
|
|
|
||||
United States
|
$
|
4,563.5
|
|
|
$
|
4,274.7
|
|
Europe
|
619.0
|
|
|
569.9
|
|
||
Latin America
|
49.0
|
|
|
52.2
|
|
||
Asia Pacific
|
49.1
|
|
|
51.2
|
|
||
Other
|
1.1
|
|
|
1.4
|
|
||
Total long-lived assets
|
$
|
5,281.7
|
|
|
$
|
4,949.4
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
September 30,
|
|
September 30,
|
|
Change in Product Net Sales
|
|
Percent Change in Product Net Sales
|
|||||||||||||||||||||
|
2014
|
|
2013
|
|
Total
|
|
Performance
|
|
Currency
|
|
Total
|
|
Performance
|
|
Currency
|
|||||||||||||
|
(in millions)
|
|
|
|
|
|
|
|||||||||||||||||||||
Net Sales by Product Line:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Specialty Pharmaceuticals:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Eye Care Pharmaceuticals
|
$
|
818.8
|
|
|
$
|
717.1
|
|
|
$
|
101.7
|
|
|
$
|
103.0
|
|
|
$
|
(1.3
|
)
|
|
14.2
|
%
|
|
14.4
|
%
|
|
(0.2
|
)%
|
Botox
®
/Neuromodulators
|
560.1
|
|
|
485.7
|
|
|
74.4
|
|
|
77.6
|
|
|
(3.2
|
)
|
|
15.3
|
%
|
|
16.0
|
%
|
|
(0.7
|
)%
|
|||||
Skin Care and Other
|
141.1
|
|
|
127.0
|
|
|
14.1
|
|
|
14.2
|
|
|
(0.1
|
)
|
|
11.1
|
%
|
|
11.2
|
%
|
|
(0.1
|
)%
|
|||||
Total Specialty
Pharmaceuticals
|
1,520.0
|
|
|
1,329.8
|
|
|
190.2
|
|
|
194.8
|
|
|
(4.6
|
)
|
|
14.3
|
%
|
|
14.6
|
%
|
|
(0.3
|
)%
|
|||||
Medical Devices:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Breast Aesthetics
|
97.5
|
|
|
91.9
|
|
|
5.6
|
|
|
5.8
|
|
|
(0.2
|
)
|
|
6.1
|
%
|
|
6.3
|
%
|
|
(0.2
|
)%
|
|||||
Facial Aesthetics
|
161.4
|
|
|
106.7
|
|
|
54.7
|
|
|
56.0
|
|
|
(1.3
|
)
|
|
51.3
|
%
|
|
52.5
|
%
|
|
(1.2
|
)%
|
|||||
Core Medical Devices
|
258.9
|
|
|
198.6
|
|
|
60.3
|
|
|
61.8
|
|
|
(1.5
|
)
|
|
30.4
|
%
|
|
31.1
|
%
|
|
(0.7
|
)%
|
|||||
Other (a)
|
11.8
|
|
|
—
|
|
|
11.8
|
|
|
11.8
|
|
|
—
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|||||
Total Medical Devices
|
270.7
|
|
|
198.6
|
|
|
72.1
|
|
|
73.6
|
|
|
(1.5
|
)
|
|
36.3
|
%
|
|
37.1
|
%
|
|
(0.8
|
)%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total product net sales
|
$
|
1,790.7
|
|
|
$
|
1,528.4
|
|
|
$
|
262.3
|
|
|
$
|
268.4
|
|
|
$
|
(6.1
|
)
|
|
17.2
|
%
|
|
17.6
|
%
|
|
(0.4
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Domestic product net sales
|
63.9
|
%
|
|
62.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
International product net sales
|
36.1
|
%
|
|
37.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Selected Product Net Sales (b):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Alphagan
®
P
,
Alphagan
®
and
Combigan
®
|
$
|
130.2
|
|
|
$
|
112.4
|
|
|
$
|
17.8
|
|
|
$
|
18.3
|
|
|
$
|
(0.5
|
)
|
|
15.9
|
%
|
|
16.3
|
%
|
|
(0.4
|
)%
|
Lumigan
®
Franchise
|
165.6
|
|
|
153.5
|
|
|
12.1
|
|
|
11.7
|
|
|
0.4
|
|
|
7.9
|
%
|
|
7.6
|
%
|
|
0.3
|
%
|
|||||
Total Glaucoma Products
|
297.6
|
|
|
267.9
|
|
|
29.7
|
|
|
29.7
|
|
|
—
|
|
|
11.1
|
%
|
|
11.1
|
%
|
|
—
|
%
|
|||||
Restasis
®
|
273.3
|
|
|
239.3
|
|
|
34.0
|
|
|
34.4
|
|
|
(0.4
|
)
|
|
14.2
|
%
|
|
14.4
|
%
|
|
(0.2
|
)%
|
|||||
Latisse
®
|
22.4
|
|
|
24.4
|
|
|
(2.0
|
)
|
|
(1.9
|
)
|
|
(0.1
|
)
|
|
(8.1
|
)%
|
|
(7.7
|
)%
|
|
(0.4
|
)%
|
|||||
Total Specialty Pharmaceuticals and Core Medical Devices
|
1,778.9
|
|
|
1,528.4
|
|
|
250.5
|
|
|
256.6
|
|
|
(6.1
|
)
|
|
16.4
|
%
|
|
16.8
|
%
|
|
(0.4
|
)%
|
|
Nine Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
September 30,
|
|
September 30,
|
|
Change in Product Net Sales
|
|
Percent Change in Product Net Sales
|
|||||||||||||||||||||
|
2014
|
|
2013
|
|
Total
|
|
Performance
|
|
Currency
|
|
Total
|
|
Performance
|
|
Currency
|
|||||||||||||
|
(in millions)
|
|
|
|
|
|
|
|||||||||||||||||||||
Net Sales by Product Line:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Specialty Pharmaceuticals:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Eye Care Pharmaceuticals
|
$
|
2,376.2
|
|
|
$
|
2,108.1
|
|
|
$
|
268.1
|
|
|
$
|
283.3
|
|
|
$
|
(15.2
|
)
|
|
12.7
|
%
|
|
13.4
|
%
|
|
(0.7
|
)%
|
Botox
®
/Neuromodulators
|
1,641.3
|
|
|
1,456.6
|
|
|
184.7
|
|
|
200.6
|
|
|
(15.9
|
)
|
|
12.7
|
%
|
|
13.8
|
%
|
|
(1.1
|
)%
|
|||||
Skin Care and Other
|
387.9
|
|
|
344.6
|
|
|
43.3
|
|
|
43.9
|
|
|
(0.6
|
)
|
|
12.6
|
%
|
|
12.7
|
%
|
|
(0.1
|
)%
|
|||||
Total Specialty
Pharmaceuticals
|
4,405.4
|
|
|
3,909.3
|
|
|
496.1
|
|
|
527.8
|
|
|
(31.7
|
)
|
|
12.7
|
%
|
|
13.5
|
%
|
|
(0.8
|
)%
|
|||||
Medical Devices:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Breast Aesthetics
|
307.2
|
|
|
288.3
|
|
|
18.9
|
|
|
19.9
|
|
|
(1.0
|
)
|
|
6.6
|
%
|
|
6.9
|
%
|
|
(0.3
|
)%
|
|||||
Facial Aesthetics
|
487.6
|
|
|
340.3
|
|
|
147.3
|
|
|
152.3
|
|
|
(5.0
|
)
|
|
43.3
|
%
|
|
44.8
|
%
|
|
(1.5
|
)%
|
|||||
Core Medical Devices
|
794.8
|
|
|
628.6
|
|
|
166.2
|
|
|
172.2
|
|
|
(6.0
|
)
|
|
26.4
|
%
|
|
27.4
|
%
|
|
(1.0
|
)%
|
|||||
Other (a)
|
36.9
|
|
|
—
|
|
|
36.9
|
|
|
36.9
|
|
|
—
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|||||
Total Medical Devices
|
831.7
|
|
|
628.6
|
|
|
203.1
|
|
|
209.1
|
|
|
(6.0
|
)
|
|
32.3
|
%
|
|
33.3
|
%
|
|
(1.0
|
)%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total product net sales
|
$
|
5,237.1
|
|
|
$
|
4,537.9
|
|
|
$
|
699.2
|
|
|
$
|
736.9
|
|
|
$
|
(37.7
|
)
|
|
15.4
|
%
|
|
16.2
|
%
|
|
(0.8
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Domestic product net sales
|
62.7
|
%
|
|
61.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
International product net sales
|
37.3
|
%
|
|
38.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Selected Product Net Sales (b):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Alphagan
®
P
,
Alphagan
®
and
Combigan
®
|
$
|
376.9
|
|
|
$
|
349.2
|
|
|
$
|
27.7
|
|
|
$
|
31.7
|
|
|
$
|
(4.0
|
)
|
|
8.0
|
%
|
|
9.1
|
%
|
|
(1.1
|
)%
|
Lumigan
®
Franchise
|
485.3
|
|
|
452.7
|
|
|
32.6
|
|
|
30.0
|
|
|
2.6
|
|
|
7.2
|
%
|
|
6.6
|
%
|
|
0.6
|
%
|
|||||
Total Glaucoma Products
|
868.6
|
|
|
808.7
|
|
|
59.9
|
|
|
61.3
|
|
|
(1.4
|
)
|
|
7.4
|
%
|
|
7.6
|
%
|
|
(0.2
|
)%
|
|||||
Restasis
®
|
774.3
|
|
|
662.4
|
|
|
111.9
|
|
|
116.2
|
|
|
(4.3
|
)
|
|
16.9
|
%
|
|
17.5
|
%
|
|
(0.6
|
)%
|
|||||
Latisse
®
|
71.2
|
|
|
76.6
|
|
|
(5.4
|
)
|
|
(4.9
|
)
|
|
(0.5
|
)
|
|
(7.1
|
)%
|
|
(6.4
|
)%
|
|
(0.7
|
)%
|
|||||
Total Specialty Pharmaceuticals and Core Medical Devices
|
5,200.2
|
|
|
4,537.9
|
|
|
662.3
|
|
|
700.0
|
|
|
(37.7
|
)
|
|
14.6
|
%
|
|
15.4
|
%
|
|
(0.8
|
)%
|
(a)
|
Other medical devices product net sales consist of sales made pursuant to transition services agreements with Apollo Endosurgery, Inc. related to the disposition of our obesity intervention business unit.
|
(b)
|
Percentage change in selected product net sales is calculated on amounts reported to the nearest whole dollar. Total glaucoma products include the
Alphagan
®
and
Lumigan
®
franchises.
|
•
|
Semprana
TM
- formerly referred to as
Levadex
®
(U.S. - Filed/Allergan addressing FDA Complete Response Letter) for migraine
|
•
|
Restasis
®
(Europe - Phase III) for ocular surface disease
|
•
|
Ser-120 (U.S. - Phase III) for nocturia (in collaboration with Serenity)
|
•
|
Abicipar pegol - Anti-VEGF
DARPin
®
(U.S. - advancing to Phase III) for neovascular age-related macular degeneration
|
•
|
Bimatoprost sustained-release implant (U.S. - Phase III) for glaucoma
|
•
|
Botox
®
(U.S. - Phase III) for juvenile cerebral palsy
|
•
|
Aczone
®
X (U.S. - Phase III) for acne vulgaris
|
•
|
AGN-199201 (U.S. - Phase III) for rosacea
|
•
|
Latisse
®
(U.S. - Phase III) for brow
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30, 2014
|
|
September 30, 2013
|
|
September 30, 2014
|
|
September 30, 2013
|
||||||||
|
(in millions)
|
||||||||||||||
Direct costs for:
|
|
|
|
|
|
|
|
||||||||
Late-stage projects
|
$
|
108.8
|
|
|
$
|
59.3
|
|
|
$
|
302.1
|
|
|
$
|
173.5
|
|
Other R&D projects
|
128.0
|
|
|
164.8
|
|
|
430.5
|
|
|
509.8
|
|
||||
Upfront and milestone payments related to licenses or purchases of in-process R&D assets
|
15.0
|
|
|
6.5
|
|
|
90.0
|
|
|
6.5
|
|
||||
Other R&D expenses
|
36.7
|
|
|
27.0
|
|
|
103.6
|
|
|
83.1
|
|
||||
Total
|
$
|
288.5
|
|
|
$
|
257.6
|
|
|
$
|
926.2
|
|
|
$
|
772.9
|
|
|
|
Employee Severance
|
|
Contract Termination Costs
|
|
Other
|
|
Total
|
||||||||
|
|
(in millions)
|
||||||||||||||
Restructuring charges during the nine month period ended September 30, 2014
|
|
$
|
150.3
|
|
|
$
|
17.1
|
|
|
$
|
17.2
|
|
|
$
|
184.6
|
|
Spending
|
|
(10.5
|
)
|
|
(0.1
|
)
|
|
(4.9
|
)
|
|
(15.5
|
)
|
||||
Balance at September 30, 2014 (included in "Accounts payable," "Other accrued expenses" and "Other liabilities")
|
|
$
|
139.8
|
|
|
$
|
17.0
|
|
|
$
|
12.3
|
|
|
$
|
169.1
|
|
|
|
Employee Severance
|
|
Other
|
|
Total
|
||||||
|
|
(in millions)
|
||||||||||
Restructuring charges during the nine month period ended September 30, 2014
|
|
$
|
20.3
|
|
|
$
|
2.3
|
|
|
$
|
22.6
|
|
Spending
|
|
(13.9
|
)
|
|
(1.5
|
)
|
|
(15.4
|
)
|
|||
Balance at September 30, 2014 (included in "Other accrued expenses")
|
|
$
|
6.4
|
|
|
$
|
0.8
|
|
|
$
|
7.2
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
2014 |
|
September 30,
2013 |
|
September 30,
2014 |
|
September 30,
2013 |
||||||||
|
(in millions)
|
||||||||||||||
Operating income:
|
|
|
|
|
|
|
|
|
|
||||||
Specialty pharmaceuticals
|
$
|
750.1
|
|
|
$
|
593.4
|
|
|
$
|
2,006.1
|
|
|
$
|
1,652.8
|
|
Medical devices
|
96.4
|
|
|
58.5
|
|
|
272.3
|
|
|
188.2
|
|
||||
Total segments
|
846.5
|
|
|
651.9
|
|
|
2,278.4
|
|
|
1,841.0
|
|
||||
General and administrative expenses, other indirect costs and other adjustments
|
240.8
|
|
|
133.4
|
|
|
607.1
|
|
|
401.2
|
|
||||
Amortization of intangible assets (a)
|
27.4
|
|
|
27.7
|
|
|
80.4
|
|
|
80.4
|
|
||||
Restructuring charges
|
185.5
|
|
|
0.6
|
|
|
208.3
|
|
|
4.9
|
|
||||
Total operating income
|
$
|
392.8
|
|
|
$
|
490.2
|
|
|
$
|
1,382.6
|
|
|
$
|
1,354.5
|
|
(a)
|
Represents amortization of certain identifiable intangible assets related to business combinations and asset acquisitions and related capitalized licensing costs, as applicable.
|
|
2013
|
||
|
(in millions)
|
||
Earnings from continuing operations before income taxes, as reported
|
$
|
1,730.8
|
|
Changes in the fair value of contingent consideration liabilities related to business combinations
|
70.7
|
|
|
Fair market value inventory adjustment rollout related to the acquisition of SkinMedica
|
8.9
|
|
|
External costs for stockholder derivative litigation and other legal contingency expenses
|
3.1
|
|
|
Transaction and integration costs associated with business combinations and license agreements
|
20.6
|
|
|
Impairment of a non-marketable third party equity investment
|
3.7
|
|
|
Restructuring charges
|
5.5
|
|
|
|
$
|
1,843.3
|
|
|
|
||
Provision for income taxes, as reported
|
$
|
458.3
|
|
Income tax benefit for:
|
|
|
|
Changes in the fair value of contingent consideration liabilities related to business combinations
|
—
|
|
|
Fair market value inventory adjustment rollout related to the acquisition of SkinMedica
|
3.3
|
|
|
External costs for stockholder derivative litigation and legal contingency expenses
|
—
|
|
|
Transaction and integration costs associated with business combinations and license agreements
|
4.8
|
|
|
Impairment of a non-marketable third party equity investment
|
1.3
|
|
|
Restructuring charges
|
1.7
|
|
|
2012 retroactive U.S. federal research and development tax credit
|
15.1
|
|
|
|
$
|
484.5
|
|
Adjusted effective tax rate
|
26.3
|
%
|
|
September 30, 2013
|
||||||
|
Three Months
|
|
Nine Months
|
||||
|
(in millions)
|
||||||
Product net sales
|
$
|
29.3
|
|
|
$
|
94.5
|
|
|
|
|
|
||||
Operating costs and expenses:
|
|
|
|
|
|||
Cost of sales (excludes amortization of intangible assets)
|
5.4
|
|
|
15.9
|
|
||
Selling, general and administrative
|
14.4
|
|
|
44.8
|
|
||
Research and development
|
1.3
|
|
|
4.0
|
|
||
Amortization of intangible assets
|
—
|
|
|
10.3
|
|
||
|
|
|
|
||||
Earnings from discontinued operations before income taxes
|
$
|
8.2
|
|
|
$
|
19.5
|
|
|
|
|
|
||||
Earnings from discontinued operations, net of income taxes
|
$
|
5.5
|
|
|
$
|
13.1
|
|
|
Italy
|
|
Spain
|
||||
|
(in millions)
|
||||||
Trade receivables from public and semi-public hospitals primarily funded by the sovereign government
|
$
|
16.8
|
|
|
$
|
14.8
|
|
Trade receivables from other customers
|
7.6
|
|
|
15.2
|
|
||
Total trade receivables
|
$
|
24.4
|
|
|
$
|
30.0
|
|
|
|
|
|
||||
Amount of trade receivables that is past due
|
$
|
13.7
|
|
|
$
|
13.5
|
|
Allowance for doubtful accounts
|
$
|
5.2
|
|
|
$
|
0.8
|
|
|
September 30, 2014
|
||||||||||||||||||||||||||||||
|
Maturing in
|
|
Fair
Market
Value
|
||||||||||||||||||||||||||||
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
2018
|
|
Thereafter
|
|
Total
|
|
|||||||||||||||||
|
(in millions, except interest rates)
|
||||||||||||||||||||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Cash Equivalents and Short-Term Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial Paper
|
$
|
1,426.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,426.1
|
|
|
$
|
1,426.1
|
|
Weighted Average Interest Rate
|
0.10
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.10
|
%
|
|
|
|
||||||||
Foreign Time Deposits
|
130.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
130.0
|
|
|
130.0
|
|
||||||||
Weighted Average Interest Rate
|
0.95
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.95
|
%
|
|
|
|
||||||||
Other Cash Equivalents
|
2,178.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,178.4
|
|
|
2,178.4
|
|
||||||||
Weighted Average Interest Rate
|
0.11
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.11
|
%
|
|
|
|
||||||||
Total Cash Equivalents and Short-Term Investments
|
$
|
3,734.5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,734.5
|
|
|
$
|
3,734.5
|
|
Weighted Average Interest Rate
|
0.14
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.14
|
%
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Debt Obligations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed Rate (US$) (a)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
821.0
|
|
|
$
|
20.0
|
|
|
$
|
249.6
|
|
|
$
|
998.0
|
|
|
$
|
2,088.6
|
|
|
$
|
2,095.8
|
|
Weighted Average Interest Rate
|
—
|
|
|
—
|
|
|
3.94
|
%
|
|
5.65
|
%
|
|
1.39
|
%
|
|
3.21
|
%
|
|
3.30
|
%
|
|
|
|
||||||||
Other Variable Rate (non-US$)
|
55.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
55.8
|
|
|
55.8
|
|
||||||||
Weighted Average Interest Rate
|
7.57
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7.57
|
%
|
|
|
|
||||||||
Total Debt Obligations
|
$
|
55.8
|
|
|
$
|
—
|
|
|
$
|
821.0
|
|
|
$
|
20.0
|
|
|
$
|
249.6
|
|
|
$
|
998.0
|
|
|
$
|
2,144.4
|
|
|
$
|
2,151.6
|
|
Weighted Average Interest Rate
|
7.57
|
%
|
|
—
|
|
|
3.94
|
%
|
|
5.65
|
%
|
|
1.39
|
%
|
|
3.21
|
%
|
|
3.41
|
%
|
|
|
|
(a)
|
The carrying value of debt obligations maturing in 2016 includes an unamortized amount of $21.3 million related to a terminated interest rate swap associated with the 2016 Notes.
|
|
December 31, 2013
|
||||||||||||||||||||||||||||||
|
Maturing in
|
|
Fair
Market
Value
|
||||||||||||||||||||||||||||
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
2018
|
|
Thereafter
|
|
Total
|
|
|||||||||||||||||
|
(in millions, except interest rates)
|
||||||||||||||||||||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Cash Equivalents and Short-Term Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial Paper
|
$
|
2,016.8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,016.8
|
|
|
$
|
2,016.8
|
|
Weighted Average Interest Rate
|
0.07
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.07
|
%
|
|
|
|
||||||||
Foreign Time Deposits
|
370.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
370.3
|
|
|
370.3
|
|
||||||||
Weighted Average Interest Rate
|
0.39
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.39
|
%
|
|
|
|
||||||||
Other Cash Equivalents
|
1,080.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,080.4
|
|
|
1,080.4
|
|
||||||||
Weighted Average Interest Rate
|
0.16
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.16
|
%
|
|
|
|
||||||||
Total Cash Equivalents and Short-Term Investments
|
$
|
3,467.5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,467.5
|
|
|
$
|
3,467.5
|
|
Weighted Average Interest Rate
|
0.13
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.13
|
%
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Debt Obligations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed Rate (US$) (a)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
831.0
|
|
|
$
|
20.0
|
|
|
$
|
249.5
|
|
|
$
|
997.8
|
|
|
$
|
2,098.3
|
|
|
$
|
2,163.8
|
|
Weighted Average Interest Rate
|
—
|
|
|
—
|
|
|
3.94
|
%
|
|
5.65
|
%
|
|
1.39
|
%
|
|
3.21
|
%
|
|
3.30
|
%
|
|
|
|
||||||||
Other Variable Rate (non-US$)
|
55.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
55.6
|
|
|
55.6
|
|
||||||||
Weighted Average Interest Rate
|
6.07
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6.07
|
%
|
|
|
|
||||||||
Total Debt Obligations
|
$
|
55.6
|
|
|
$
|
—
|
|
|
$
|
831.0
|
|
|
$
|
20.0
|
|
|
$
|
249.5
|
|
|
$
|
997.8
|
|
|
$
|
2,153.9
|
|
|
$
|
2,219.4
|
|
Weighted Average Interest Rate
|
6.07
|
%
|
|
—
|
|
|
3.94
|
%
|
|
5.65
|
%
|
|
1.39
|
%
|
|
3.21
|
%
|
|
3.38
|
%
|
|
|
|
(a)
|
The carrying value of debt obligations maturing in 2016 includes an unamortized amount of $31.5 million related to a terminated interest rate swap associated with the 2016 Notes.
|
|
September 30, 2014
|
|
December 31, 2013
|
||||||||||
|
Notional
Amount
|
|
Average Contract
Rate or Strike
Amount
|
|
Notional
Amount
|
|
Average Contract
Rate or Strike
Amount
|
||||||
|
(in millions)
|
|
|
|
(in millions)
|
|
|
||||||
Foreign currency forward contracts:
|
|
|
|
|
|
|
|
||||||
(Receive U.S. dollar/pay foreign currency)
|
|
|
|
|
|
|
|
||||||
Japanese yen
|
$
|
10.7
|
|
|
107.36
|
|
|
$
|
9.2
|
|
|
103.02
|
|
Australian dollar
|
3.1
|
|
|
0.90
|
|
|
9.3
|
|
|
0.88
|
|
||
Russian ruble
|
24.1
|
|
|
39.11
|
|
|
16.5
|
|
|
33.42
|
|
||
Polish zloty
|
0.6
|
|
|
3.25
|
|
|
—
|
|
|
—
|
|
||
New Zealand dollar
|
0.8
|
|
|
0.81
|
|
|
—
|
|
|
—
|
|
||
|
$
|
39.3
|
|
|
|
|
|
$
|
35.0
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Estimated fair value
|
$
|
1.1
|
|
|
|
|
|
$
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign currency forward contracts:
|
|
|
|
|
|
|
|
|
|
|
|
||
(Pay U.S. dollar/receive foreign currency)
|
|
|
|
|
|
|
|
|
|
|
|
||
Euro
|
$
|
38.9
|
|
|
1.30
|
|
|
$
|
41.3
|
|
|
1.38
|
|
|
|
|
|
|
|
|
|
||||||
Estimated fair value
|
$
|
(1.0
|
)
|
|
|
|
|
$
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign currency sold — put options:
|
|
|
|
|
|
|
|
|
|
|
|
||
Canadian dollar
|
$
|
116.5
|
|
|
1.10
|
|
|
$
|
95.4
|
|
|
1.04
|
|
Mexican peso
|
5.1
|
|
|
13.25
|
|
|
17.7
|
|
|
13.12
|
|
||
Australian dollar
|
50.9
|
|
|
0.88
|
|
|
44.8
|
|
|
0.92
|
|
||
Brazilian real
|
35.8
|
|
|
2.63
|
|
|
29.7
|
|
|
2.42
|
|
||
Euro
|
500.6
|
|
|
1.40
|
|
|
245.5
|
|
|
1.36
|
|
||
Korean won
|
4.9
|
|
|
1,068.27
|
|
|
18.5
|
|
|
1,062.71
|
|
||
Turkish lira
|
8.4
|
|
|
2.19
|
|
|
32.7
|
|
|
2.13
|
|
||
Polish zloty
|
2.3
|
|
|
3.11
|
|
|
9.7
|
|
|
3.08
|
|
||
Swiss franc
|
2.5
|
|
|
0.88
|
|
|
9.5
|
|
|
0.88
|
|
||
Russian ruble
|
6.1
|
|
|
34.74
|
|
|
17.0
|
|
|
34.09
|
|
||
Swedish krona
|
2.6
|
|
|
6.59
|
|
|
6.8
|
|
|
6.57
|
|
||
South African rand
|
2.6
|
|
|
10.97
|
|
|
11.0
|
|
|
10.72
|
|
||
Japanese yen
|
8.2
|
|
|
102.66
|
|
|
22.5
|
|
|
102.75
|
|
||
|
$
|
746.5
|
|
|
|
|
|
$
|
560.8
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Estimated fair value
|
$
|
55.7
|
|
|
|
|
|
$
|
20.2
|
|
|
|
|
Period
|
Total Number of Shares Purchased (1)
|
|
Average Price Paid per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
|
Maximum Number (or Approximate Dollar Value) of Shares that May Yet be Purchased Under the Plans or Programs (2)
|
|||||
July 1, 2014 to July 31, 2014
|
4
|
|
|
$
|
169.25
|
|
|
—
|
|
|
7,977,949
|
|
August 1, 2014 to August 31, 2014
|
6,955
|
|
|
163.46
|
|
|
—
|
|
|
8,108,412
|
|
|
September 1, 2014 to September 30, 2014
|
—
|
|
|
—
|
|
|
—
|
|
|
8,407,623
|
|
|
Total
|
6,959
|
|
|
$
|
163.47
|
|
|
—
|
|
|
N/A
|
|
(1)
|
We maintain an evergreen stock repurchase program, which we first announced on September 28, 1993. Under the stock repurchase program, we may maintain up to 18.4 million repurchased shares in our treasury account at any one time. At
September 30, 2014
, we held approximately 10.0 million treasury shares under this program. Pursuant to our evergreen stock repurchase program, we entered into certain stock repurchase plans that authorized our brokers to purchase our common stock traded in the open market. The terms of the plans set forth an aggregate maximum limit of 6.0 million shares to be repurchased in the first half of 2014, and the aggregate maximum limit of the plans has been satisfied. During the third fiscal quarter of
2014
, the difference between total number of shares purchased and total number of shares purchased as part of publicly announced plans or programs is due to shares of common stock withheld by us to satisfy tax withholding obligations related to vested employee restricted stock awards.
|
(2)
|
The share numbers reflect the maximum number of shares that may be purchased under our stock repurchase program and are as of the end of each of the respective periods.
|
|
|
|
ALLERGAN, INC.
|
|
|
|
/s/ James M. Hindman
|
|
James M. Hindman
Executive Vice President,
Finance and Business Development,
Chief Financial Officer
(Principal Financial Officer)
|
Exhibit
No.
|
|
Description
|
3.1
|
|
Amended and Restated Certificate of Incorporation of Allergan, Inc. filed with the Secretary of State of the State of Delaware on May 9, 2014 and Certificate of Designations of Series A Junior Participating Preferred Stock of Allergan, Inc. filed with the Secretary of State of the State of Delaware on April 23, 2014 (incorporated by reference to Exhibit 3.1 to Allergan, Inc.’s Report on Form 10-Q for the Quarter ended June 30, 2014)
|
|
|
|
3.2
|
|
Allergan, Inc. Amended and Restated Bylaws (incorporated by reference to Exhibit 3.2 to Allergan, Inc.’s Report on Form 10-Q for the Quarter ended June 30, 2014)
|
|
|
|
4.1
|
|
Rights Agreement, dated as of April 22, 2014, between Allergan, Inc. and Wells Fargo Bank, N.A., which includes the form of Certificate of Designations of Preferred Stock as Exhibit A, the form of Right Certificate as Exhibit B, and the Summary of Rights to Purchase Preferred Stock as Exhibit C (incorporated by reference to Exhibit 4.1 to Allergan Inc.’s Current Report on Form 8-K filed on April 23, 2014)
|
|
|
|
10.1
|
|
Form of 2014 Performance-Based Restricted Stock Unit Award Grant Agreement for Employees under the Allergan, Inc. 2011 Incentive Award Plan
|
|
|
|
31.1
|
|
Certification of Principal Executive Officer Required Under Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended
|
|
|
|
31.2
|
|
Certification of Principal Financial Officer Required Under Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended
|
|
|
|
32
|
|
Certification of Principal Executive Officer and Principal Financial Officer Required Under Rule 13a-14(b) of the Securities Exchange Act of 1934, as amended, and 18 U.S.C. Section 1350
|
|
|
|
101
|
|
The following financial statements from Allergan, Inc.'s Report on Form 10-Q for the Quarter ended September 30, 2014, formatted in XBRL (eXtensible Business Reporting Language): (i) Unaudited Condensed Consolidated Statements of Earnings; (ii) Unaudited Condensed Consolidated Statements of Comprehensive Income; (iii) Unaudited Condensed Consolidated Balance Sheets; (iv) Unaudited Condensed Consolidated Statements of Cash Flows; and (v) Notes to Unaudited Condensed Consolidated Financial Statements
|
Written Certification
:
|
Not later than forty-five (45) days following December 31, 2016, the Organization & Compensation Committee of the Company’s Board of Directors (the “
Compensation Committee
”) shall certify in writing (i) whether the Performance EPS Target was achieved, and (ii) whether the TSR Target was achieved (the “
Written Certification
”).
|
|
|
Distribution Schedule:
|
Following the Certification Date, the shares of Stock subject to the Restricted Stock Units that vest (if any) shall be distributable in accordance with Sections 2.5 and 3.17 of the Terms.
|
Print Name:
|
David E.I. Pyott
|
Title:
|
Chairman of the Board and Chief Executive Officer
|
Address:
|
2525 Dupont Drive
|
Attachments:
|
Terms and Conditions (
Exhibit A
)
|
I.
|
GENERAL
|
II.
|
GRANT, VESTING AND DISTRIBUTION OF RESTRICTED STOCK UNITS
|
III.
|
OTHER PROVISIONS
|
If to the Company:
|
Allergan, Inc.
Attention: General Counsel 2525 Dupont Drive Irvine, California 92612 |
If to Participant:
|
To Participant’s most recent address then
on file in the Company’s personnel records. |
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ DAVID E.I. PYOTT
|
|
David E.I. Pyott
Chairman of the Board and
Chief Executive Officer
(Principal Executive Officer)
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ JAMES M. HINDMAN
|
|
James M. Hindman
Executive Vice President,
Finance and Business Development,
Chief Financial Officer
(Principal Financial Officer)
|
(i)
|
the accompanying Quarterly Report on Form 10-Q of the Company for the period ended September 30, 2014 (the “Report”) fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and
|
(ii)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
/s/ DAVID E.I. PYOTT
|
|
David E.I. Pyott
Chairman of the Board and
Chief Executive Officer
(Principal Executive Officer)
|
(i)
|
the accompanying Quarterly Report on Form 10-Q of the Company for the period ended September 30, 2014 (the “Report”) fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and
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(ii)
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the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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/s/ JAMES M. HINDMAN
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James M. Hindman
Executive Vice President,
Finance and Business Development,
Chief Financial Officer
(Principal Financial Officer)
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