EX-99.2 3 ex99_2.htm CONSOLIDATED STATEMENTS OF INCOME AND SELECTED CONSOLIDATED FINANCIAL DATA ex99_2.htm
 
EXHIBIT 99.2

GENENTECH, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share amounts)
(Unaudited)

   
Three Months
    
Nine Months
  
   
Ended September 30,
    
Ended September 30,
  
   
2008
    
2007
    
2008
    
2007
  
Revenues:
                        
Product sales
   $ 2,634     $ 2,321     $ 7,549     $ 7,094  
Royalties
     687       524       1,932       1,427  
Contract revenue
     91       63       230       234  
      Total operating revenues
     3,412       2,908       9,711       8,755  
                                 
Costs and expenses:
                                
Cost of sales (includes employee stock-based compensation expense: three months–2008–$20; 2007–$16; nine months–2008–$62; 2007–$49)
     409       406       1,240       1,227  
Research and development (includes employee stock-based compensation expense: three months–2008–$39; 2007–$37; nine months–2008–$119; 2007–$114)
     777       615       2,043       1,828  
Marketing, general and administrative (includes employee stock-based compensation expense: three months–2008–$44; 2007–$44; nine months–2008–$130; 2007–$137)
     611       541       1,687       1,564  
Collaboration profit sharing
     315       276       907       805  
Write-off of in-process research and development related to acquisition(1)
     -       77       -       77  
Gain on acquisition(1)
     -       (121 )     -       (121 )
Recurring amortization charges related to redemption and acquisition(2)
     43       38       129       90  
Special items: litigation-related
     40       14       (260 )     41  
      Total costs and expenses
     2,195       1,846       5,746       5,511  
                                 
Operating income
     1,217       1,062       3,965       3,244  
                                 
Other income (expense):
                                
Interest and other income (expense), net(3)
     (33 )     84       133       233  
Interest expense
     (25 )     (18 )     (57 )     (53 )
      Total other income (expense), net
     (58 )     66       76       180  
                                 
Income before taxes
     1,159       1,128       4,041       3,424  
Income tax provision
     428       443       1,546       1,286  
Net income
   $ 731     $ 685     $ 2,495     $ 2,138  
                                 
Earnings per share:
                                
Basic
   $ 0.69     $ 0.65     $ 2.37     $ 2.03  
Diluted
   $ 0.68     $ 0.64     $ 2.34     $ 2.00  
                                 
Weighted average shares used to compute earnings per share:
                                
Basic
     1,055       1,053       1,053       1,053  
Diluted
     1,071       1,069       1,067       1,070  
_________________________
(1)
Represents non-recurring items related to our 2007 acquisition of Tanox, Inc.
(2)
Represents the amortization of intangible assets related to the 1999 redemption of our common stock by Roche Holdings, Inc. and our 2007 acquisition of Tanox, Inc.
(3)
"Interest and other income (expense), net" includes interest income, realized gains and losses from the sale of debt and equity securities, write-downs for other-than-temporary impairments in the fair value of certain debt and equity securities and mark-to-market valuation adjustments for various securities. For further detail, refer to our web site at www.gene.com.


 
 
 


GENENTECH, INC.
SELECTED CONSOLIDATED FINANCIAL DATA
(In millions)
(Unaudited)

   
September 30,
    
December 31,
  
   
2008
    
2007
  
Selected consolidated balance sheet data:
            
Cash, cash equivalents and short-term investments
   $ 5,932     $ 3,975  
Accounts receivable - product sales, net
     862       847  
Accounts receivable - royalties, net
     734       620  
Accounts receivable - other, net
     232       299  
Inventories
     1,408       1,493  
Long-term marketable debt and equity securities
     2,606       2,090  
Property, plant and equipment, net
     5,320       4,986  
Goodwill
     1,590       1,577  
Other intangible assets
     1,046       1,168  
Other long-term assets
     358       366  
Total assets
     20,611       18,940  
Commercial paper
     536       599  
Total current liabilities
     2,836       3,918  
Long-term debt(1)
     2,504       2,402  
Total liabilities
     5,985       7,035  
Total stockholders' equity
     14,626       11,905  

   
Nine Months Ended September 30,
  
   
2008
    
2007
  
Selected consolidated cash flow data:
            
Capital expenditures(1)
   $ 569     $ 692  
                 
Total depreciation and amortization expense
     433       345  
_________________________
(1)
Capital expenditures exclude approximately $104 million for the nine months ended September 30, 2008 and $156 million for the nine months ended September 30, 2007 in capitalized costs related to our accounting for construction projects for which we are considered to be the owner during the construction period.  We have recognized related amounts as a construction financing obligation in long-term debt.  The balances in long-term debt related to the construction financing obligation are $495 million at September 30, 2008 and $399 million at December 31, 2007.