11. Company Data by Operating and Geographic Segment
The Company has three reportable segments: Pharmaceuticals, Consumer Health
Care, and Corporate and All Other. The Company's Pharmaceuticals and Consumer
Health Care reportable segments are strategic business units that offer
different products and services. The reportable segments are managed separately
because they manufacture, distribute and sell distinct products and provide
services, which require various technologies and marketing strategies.
The Company is not dependent on any single customer or major group of
customers for its sales (see Note 1).
The Pharmaceuticals segment manufactures,
distributes and sells
branded and generic human ethical pharmaceuticals, biologicals,
nutritionals, and animal biologicals and pharmaceuticals. Principal
products include women's health care products, infant nutritionals,
cardiovascular products, neuroscience therapies, gastroenterology
drugs, anti-infectives, vaccines, biopharmaceuticals, oncology
therapies, musculoskeletal therapies and transplantation products.
Principal animal health products include vaccines, pharmaceuticals,
endectocides and growth implants.
The Consumer Health Care segment manufactures, distributes
and sells over-the-counter health care products whose principal products
include analgesics, cough/cold/allergy remedies, nutritional supplements,
herbal products, and hemorrhoidal, antacid, asthma and
other relief items.
Corporate is responsible for the treasury, tax and legal operations
of the Company's businesses and maintains and incurs certain assets,
liabilities, expenses, gains and losses related to the overall management
of the Company which are not allocated to the other reportable segments.
All Other consists of the Sherwood-Davis & Geck medical
devices business, which the Company divested in February 1998.
The accounting policies of the segments described
above are the same as those described in the Summary of Significant Accounting
Policies in Note 1. The Company evaluates the
performance of the Pharmaceuticals and Consumer Health Care reportable
segments based on income from continuing operations before taxes which
includes goodwill amortization, gains on the sales of non-corporate assets
and certain other items. Corporate and All Other includes special charges,
interest expense and interest income, gains on the sales of investments
and other corporate assets, including the sale of Immunex common stock,
the Warner-Lambert Company termination fee, certain litigation provisions,
including the Redux and Pondimin litigation charges, goodwill
impairment, the gain on the sale of the Sherwood-Davis & Geck medical
devices business and other miscellaneous items.
Company Data by Operating Segment
(In millions)
Years Ended December 31, |
2000 |
1999 |
1998 |
|
Net Revenue from Customers |
|
Pharmaceuticals |
$10,797.6 |
$ 9,505.9 |
$ 8,901.8 |
Consumer Health Care |
2,465.2 |
2,375.3 |
2,174.7 |
Corporate and All Other |
- |
- |
192.1 |
|
|
Consolidated Total |
$13,262.8 |
$11,881.2 |
$11,268.6 |
|
|
Income (Loss) from Continuing
Operations before Taxes(1) |
|
Pharmaceuticals |
$ 2,930.0 |
$ 2,554.6 |
$ 2,488.3 |
Consumer Health Care |
616.1 |
578.6 |
509.7 |
Corporate and All Other(2) |
(4,647.1) |
(5,040.5) |
91.9 |
|
|
Consolidated Total |
$(1,101.0) |
$ (1,907.3) |
$ 3,089.9 |
|
|
Depreciation and
Amortization Expense |
|
Pharmaceuticals |
$ 458.8 |
$ 465.6 |
$ 443.8 |
Consumer Health Care |
61.0 |
57.3 |
52.3 |
Corporate and All Other |
15.2 |
18.3 |
15.5 |
|
|
Consolidated Total |
$ 535.0 |
$ 541.2 |
$ 511.6 |
|
|
Total Assets |
|
Pharmaceuticals |
$12,388.6 |
$11,101.4 |
$11,158.2 |
Consumer Health Care |
1,697.2 |
1,864.4 |
1,809.6 |
Net assets-discontinued business held for sale |
- |
4,192.3 |
4,078.7 |
Corporate and All Other |
7,006.7 |
5,965.7 |
3,177.7 |
|
|
Consolidated Total |
$21,092.5 |
$23,123.8 |
$20,224.2 |
|
|
Expenditures for
Long-Lived Assets |
|
Pharmaceuticals |
$ 1,720.1 |
$ 1,038.9 |
$ 571.3 |
Consumer Health Care(3) |
38.4 |
66.8 |
100.3 |
Corporate and All Other |
55.0 |
31.4 |
20.5 |
|
|
Consolidated Total |
$ 1,813.5 |
$ 1,137.1 |
$ 692.1 |
|
|
Company Data by Geographic Segment
(In millions)
Years Ended December 31, |
2000 |
1999 |
1998 |
|
Net Revenue from Customers(4) |
|
United States |
$ 8,007.6 |
$ 7,229.0 |
$ 6,791.1 |
United Kingdom |
898.1 |
745.1 |
623.1 |
Other International |
4,357.1 |
3,907.1 |
3,854.4 |
|
|
Consolidated Total |
$13,262.8 |
$11,881.2 |
$11,268.6 |
|
|
Long-Lived Assets
at December 31(4), |
|
United States |
$ 6,228.8 |
$ 6,379.7 |
$ 6,083.6 |
International |
3,074.8 |
2,824.8 |
2,889.6 |
|
|
Consolidated Total |
$ 9,303.6 |
$ 9,204.5 |
$ 8,973.2 |
|
|
- (1)
- Income (loss) from continuing operations before taxes included
goodwill amortization for 2000, 1999 and 1998 as follows: Pharmaceuticals
— $147.8, $154.3 and $158.2, and Consumer Health Care — $31.8,
$32.7 and $22.6, respectively, and Corporate and All Other —
$0.9 in 1998.
- (2)
-
- 2000 and 1999 Corporate and All Other included litigation
charges of $7,500.0 and $4,750.0, respectively, relating to
the litigation brought against the Company regarding the use
of the diet drug products Redux or Pondimin. The charges provide
for all anticipated payments in connection with the nationwide,
class action settlement, payments to the approximately 40,000
opt out claimants with whom the Company has agreed to settle,
and all anticipated payments to resolve the claims of the remaining
approximately 10,000 opt outs and any PPH claimants, as well
as all legal fees and other costs, net of insurance (see
Note 10). The charges related to the Pharmaceuticals operating
segment.
2000 Corporate and All Other included:
- Income of $1,709.4 resulting from the receipt of a $1,800.0
termination fee provided for under the merger agreement
with Warner-Lambert Company offset, in part, by certain
related expenses (see Note 3).
- Income of $2,061.2 relating to the Company selling a portion
of its investment in Immunex common stock in a joint public
equity offering with Immunex (see Note
2). The transaction related to the Pharmaceuticals operating
segment.
- Goodwill impairment of $401.0 related to the goodwill
associated with generic pharmaceuticals and the Solgar consumer
health care product line. The charge related to the operating
segments as follows: Pharmaceuticals —$231.0 and Consumer
Health Care —$170.0 (see Note 3).
- A special charge of $80.0 related to the voluntary ceasing
of production and subsequent market withdrawal of products
containing PPA (see Note 3). The
charge related to the Consumer Health Care operating segment.
- A special charge of $267.0 related to costs associated
with certain product discontinuations (see
Note 3). The charge related to the Pharmaceuticals operating
segment.
1999 Corporate and All Other included a special charge of $82.0
related to the suspension of shipments and the voluntary market
withdrawal of RotaShield, the Company's rotavirus vaccine (see
Note 3). The charge related to the Pharmaceuticals operating
segment.
1998 Corporate and All Other included a special charge for restructuring
and related asset impairments of $321.2 (see
Note 3). The charge related to the operating segments as
follows: Pharmaceuticals —$294.9 and Consumer Health Care —$26.3.
1998 Corporate and All Other included the gain on the sale of
the Sherwood-Davis & Geck medical devices business of $592.1
(see Note 2).
- (3)
- 1998 expenditures for long-lived assets for Consumer Health
Care excluded $408.6 of expenditures for goodwill and long-lived
assets acquired in purchase business combinations.
- (4)
- Other than the United States and the United Kingdom, no other
country in which the Company operates had net revenue greater
than 5% of the respective consolidated total. Other than the
United States, no country in which the Company operates had
long-lived assets greater than 5% of the respective consolidated
total. The basis for attributing net revenue to geographic areas
is the location of the customer. Long-lived assets consist of
property, plant and equipment, goodwill and other intangibles,
and other assets, excluding deferred taxes, net investments
in equity companies and other investments.
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