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Financial Fundamentals

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201420132012201120102009
NET SALES 5,001 20,314 20,317 18,312 16,121 13,899
COST OF SALES - excluding inventory step-up and amortization 2,014 8,419 8,246 7,607 6,452 5,780
INVENTORY STEP-UP - - 63 352 107 302
AMORTIZATION OF PURCHASED INTANGIBLE ASSETS268 298 1,136668 497 450
COSTS RELATED TO REGULATORY ACTIONS TAKEN IN FACILITIES 18 43 128170--
ACCELERATED DEPRECIATION4 9
GROSS PROFIT – GAAP 2,69710,707 10,652 9,515 9,065 7,367
GROSS PROFIT – NON GAAP* 2,98711,89512,071 1,2839,669 8,119
RESEARCH AND DEVELOPMENT EXPENSES - net   353    1,422    1,283  1,080    933    802
PURCHASE OF RESEARCH AND DEVELOPMENT IN PROCESS -        5           73      15      18      23
SELLING AND MARKETING EXPENSES - excluding amortization967 4,0363,835 3,4402,938 2,641
AMORTIZATION OF PURCHASED INTANGIBLE ASSETS     17      44       44      38      30      35
GENERAL AND ADMINISTRATIVE EXPENSES    302    1,239    1,238    932    865    823
LOSS CONTINGENCIES, IMPAIRMENTS, SETTLEMENTS, AND OTHER   86       2,312    1,974   901    410    638
OPERATING INCOME (LOSS) – GAAP9721,6492,205 3,109 3,871 2,405
OPERATING INCOME – NON GAAP*1,3655,1985,715 5,253 4,933 3,853
FINANCIAL EXPENSES (INCOME) - net (mainly recurring interest and exchange gains(losses))     84     289     354   153    154    210
FINANCIAL EXPENSES (INCOME) - net (mainly impairment and other special items)   (3)        110          32       -        71       (8)
INCOME (LOSS) BEFORE INCOME TAXES – GAAP   891 1,250    1,8192,956 3,646 2,203
PROVISION FOR INCOME TAXES   239    630   661    592    613    577
TAX EFFECT of items excluded from GAAP results  (96)    (673)   (798)  (465)  (330)  (411)
   748 1,293    1,956 2,829 3,363 2,037
SHARE IN PROFITS (LOSSES) OF ASSOCIATED COMPANIES – net      (8)       (46)     (46)    (61)    (24)    (33)
NET (INCOME) LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS       4       16        17        (9)        (8)        (4)
MINORITY INTEREST CHANGES RELATED TO IMPAIRMENTS OF CO-OWNED ASSETS - - 36 - - -
NET INCOME (LOSS) ATTRIBUTABLE TO TEVA – GAAP   744 1,269    1,963 2,759 3,331 2,000
NET INCOME (LOSS) ATTRIBUTABLE TO TEVA– NON GAAP*1,038 4,2554,6714,438 4,134 3,029
     
EARNINGS (LOSS) PER SHARE ATTRIBUTABLE TO TEVA– GAAP:                                           Diluted ($)  0.87   1.49  2.25   3.09   3.67   2.23
     
WEIGHTED AVERAGE NUMBER OF SHARES (IN MILLIONS) – GAAP:   Diluted    852     850     873    893    921    896
     
EARNINGS PER SHARE ATTRIBUTABLE TO TEVA– NON GAAP:    Diluted ($)  1.22    5.01    5.35   4.97   4.54   3.37
     
WEIGHTED AVERAGE NUMBER OF SHARES (IN MILLIONS) – NON GAAP:   Diluted    852     850    873    893    921    912
* Non GAAP results exclude the following items, as applicable - inventory step up, amortization of purchased intangible assets, costs related to regulatory actions taken in facilities, purchase of R&D in process, legal settlements and reserves, acquisition restructuring and other expenses and impairment, impairment of financial assets and other special items and their related tax effect
** Non-controlling interests reclassification
The table below reconciles Teva's non GAAP results as reported prior to 2009 with the Company's non GAAP presentation adopted in Q1'09. Prior to 2009, Teva's non GAAP results included the impact of amortization of intangible assets. Non GAAP results prior to 2009 excluded, as applicable, inventory step up, acquisition of R&D in process, impairment of intangible assets and legal settlements and impairment of financial assets and their related tax effect. 

Amortization included in cost of sales      152 150129
Amortization included S&M       28 7161
Tax effect on amortization     (36)    (50)    (48)
    
COST OF SALES - as reported   5,112   4,531   4,054
SELLING AND MARKETING - as reported   1,842   1,264   1,024
TAX EFFECT ON NON-GAAP ITEMS - as reported     (66)0   (173)
    
EPS non GAAP as reported (including amortization)Diluted ($) 2.862.362.29
EPS effect of amortization  0.170.210.17
201420132012201120102009
ASSETS
CURRENT ASSETS:
Cash and cash equivalents901 1,038 2,879 1,096 1,248 1,995
Accounts receivable 5,275 5,338 5,572 6,213 5,476 5,019
Inventories 4,976 5,033 5,502 5,012 3,866 3,332
Deferred taxes and other current assets 2,296 2,2912,402 2,132 1,452 1,695
TOTAL CURRENT ASSETS 13,448 13,720 16,355 14,453 12,042 12,041
Other non-current assets 1,470 1,696 1,338 1,133 770 676
PROPERTY, PLANT AND EQUIPMENT, net 6,665 6,635 6,315 5,947 4,357 3,766
IDENTIFIABLE INTANGIBLE ASSETS, net 6,330 6,476 7,745 10,316 5,751 4,053
GOODWILL 18,97918,981 18,856 18,293 15,232 12,674
TOTAL ASSETS 46,89247,50850,609 50,142 38,152 33,210
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Short-term debt and current maturities of long term liabilities 1,552 1,804 3,006 4,280 2,771 1,301
Sales reserves and allowances 4,839 4,918 4,934 4,428 3,403 2,942
Accounts payable and accruals  3,143 3,317 3,376 3,572 2,467 2,349
Other current liabilities523 1,868 1,572 1,396 1,053 910
TOTAL CURRENT LIABILITIES 11,402 11,965 12,888 13,676 9,694 7,502
LONG-TERM LIABILITIES:
Deferred income taxes 1,2561,2471,849 2,610 1,348 1,241
Other taxes and long term payables 960 1,273 1,293 1,277 998 897
Senior notes and loans10,24410,38711,712 10,236 4,097 3,494
Convertible senior debentures - long term- - - - 13 817
TOTAL LONG-TERM LIABILITIES 12,46012,90714,854 14,123 6,456 6,449
EQUITY:
Teva shareholders' equity 22,96722,56522,768 22,195 21,947 19,222
Non-controlling interest6371 99 148 **55 **37
TOTAL EQUITY 23,03022,63622,867 22,343 22,002 19,259
TOTAL LIABILITIES & EQUITY 46,89247,50850,609 50,142 38,152 33,210
* After giving retroactive effect to the adoption of an accounting pronouncement which requires issuers to account separately for the liability and equity components of convertible debt instruments that may be settled in cash (including partial cash settlement) 
** Non-controlling interests reclassification