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Gross profit is defined as Net sales less Cost of products sold.(2)
Adjusted Net income is shown net of tax of $111.4 million and $48.3 million exclusive of the 2011 tax audit settlement for the nine months ended September 30, 2012 and 2011, respectively, based on the statutory tax rates in the various tax jurisdictions in which the items occurred.(3)
The Non-GAAP financial measures contained in this press release (including adjusted gross profit, adjusted income from operations, adjusted net income and adjusted diluted Earnings Per Share) adjust for certain specified items. All Non-GAAP financial measures are intended to supplement the applicable GAAP measures and should not be considered in isolation from, or a replacement for, financial measures prepared in accordance with GAAP. Refer to Hospira’s filing on Form 8-K filed on November 7, 2012 for additional information.Hospira, Inc.Condensed Consolidated Balance Sheets(Unaudited)(dollars in millions)September 30,December 31,Assets20122011Current Assets:Cash and cash equivalents
$
841.2$
597.5Trade receivables, less allowances of $14.1 in 2012 and $15.7 in 2011
585.1639.9Inventories
1,009.21,027.0Deferred income taxes
163.8174.4Prepaid expenses
70.645.9Other receivables
120.186.0Total Current Assets
2,790.02,570.7Property and equipment, net
1,405.71,355.0Intangible assets, net
288.5355.8Goodwill1,083.81,082.9Deferred income taxes
284.1232.2Investments
64.748.7Other assets
157.4133.8Total Assets
$
,074.2$
5,779.1Liabilities and Shareholders' EquityCurrent Liabilities:Short-term borrowings
$
87.0$
36.6Trade accounts payable
267.7241.3Salaries, wages and commissions
130.0113.0Other accrued liabilities
519.5456.9Total Current Liabilities
1,004.2847.8Long-term debt
1,708.81,711
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