ABC Company

Consolidated Statements of Income

(Amounts in thousands, except per-share amounts)

Year Ended December 31

2XX1

Revenue:
Product Sales $635,263
Royalties (Including amounts from related parties: 190,811
Contract and Other 31,209
Interest 60,562
Total Revenues 917,845

Cost and Expenses:

Cost of Sales 97,930

Research and Development 363,049

Marketing, General, and Administrative 251,653
Special Charge (Primarily merger related)
Interest 7,940
Total Cost and Expenses 745,572
Income Before Taxes 172,273
Income Tax Provision 25,841
Net Income $146,432
Net Income Per Share $1.21
Weighted Average Number of Share Used in Computing Per Share Amounts 121,220
 Tax Rate is 39%

2XX0

$601,064
126,022 Product Sales
25,556
42,748 Cost of Sales
795,390
Marketing, General, and Administrative

95,829 Operating Income

314,322 NOPAT
248,604

7,058
665,813 Royalties (Including amounts from related parties:
129,577 Contract and Other
5,183 Interest Gain
$124,394 Interest Expense
$1.04 Net Interest
119,465 Fin income before taxed
Special Charge (Primarily merger related)
Research and Development
 635,263 601064

97,930 95829

$251,653 248604

285680 256631

259839 251448

190811 126022
31209 25556
60562 42748
7940 7058
52622 35690
274642 187268
25000 0
363049 314322
-113407 -127054

146432 124394
 ABC Company
Consolidated Balance Sheet
(In thousands of dollars)

Year Ended December 31

2XX1 2XX0

Assets:
Current Assets
Cash and Cash Equivalents $137,043 $66,713
Short-Term Investments 603,296 652,461
Accounts Receivable 172,160 146,267
Inventories 93,648 103,200
Prepaid Expenses and Other Current Assets 39,267 28,475
Total Current Assets 1,045,414 997,116
Long-Term Marketable Securities 356,475 201,726
Property, Plant, and Equipment, at Cost
Land 57,313 55,998
Buildings 258,717 245,871
Equipment 383,387 331,392
Leasehold Improvements 12,508 11,988
Construction in Progress 60,480 55,299
772,405 700,548
Less Accumulated Depreication 268,751 215,255
Net Property, Plant, and Equipment 503,654 485,293
Other Assets 105,452 60,989
Total Assets $2,010,995 $1,745,124

Liabilities and Stockholders' Equity:

Current Liabilities
Accounts Payable $37,101 $30,963
Accrued Compensation 36,945 36,939
Accrued Royalties 23,159 25,864
Accrued Marketing and Promotion Costs 18,863 27,463

Accrued Clinical and Other Studies 33,621 36,277

Income Taxes Payable 14,329 17,839
Other Accrued Liabilities 69,068 44,283
Current Portion of Long-term Debt 358 871
Total Current Liabilities 233,444 220,499
Long-Term Debt 150,000 150,358
Other Long-term Liabilities 25,504 25,483
Total Liabilities 408,948 396,340
Commitments and Congingencies
Stockholders' Equity
Preferred stock, $0.02 par value; authorized
100,000,000 shares, none issued 0 0
Special common stock, $0.02 par value; authorized
100,000,000 shares, outstanding: 2XX1, 42,464,958;
no shares authorized or outstanding in 2XX0 853 0
 Redeemable common stock, $0.02 par value; no shares
authorized or outstanding in 2XX1; 2XX0, 50,105,925
shares outstanding 0 1,002
Common stock, $0.02 par value; authorized 200,000,000
shares, outstanding: 2XX1, 76,621,009; 2XX0, 67,133,409 1,532 1,343
Additional Paid-in-Capital 1,281,640 1,207,720
Retained Earnings 263,749 129,127
Net unrealized gain on securities available for sale 54,273 9,592
Total Stockholders' Equity 1,602,047 1,348,784
Total Liabilities and Stockholders' Equity $2,010,995 $1,745,124
FA 10000 cash is operating FO 151,229 OA 1,408,484
FA FA $920,900 OL $175,345
OA FO-FA+CS 579,113 1,233,139
OA
OA

FA

OA
OA

OL
OL
OL
OL

OL
FL-
OL
FL

FL
FL
 ABC Company
Consolidated Balance Sheet
(In thousands of dollars)

Year Ended December 31

2XX1 2XX0

Net Operating Assets

Operating Assets
Cash & Cash Equivalents 10000 10000
Accounts Receivable 172,160 146,267
Inventories 93,648 103,200
Prepaid Expenses and Other Cur 39,267 28,475
Net Property, Plant, and Equi 503,654 485,293 OA
Other Assets 105,452 60,989 OA

Operating Liabilites
Accounts Payable $37,101 $30,963
Accrued Compensation 36,945 36,939
Accrued Royalties 23,159 25,864
Accrued Marketing and Promo 18,863 27,463

Accrued Clinical and Other St 33,621 36,277

Other Accrued Liabilities 69,068 44,283

NOA $705,424 $632,435

Fin Obligations & Equity

Financial Obligations
Income Taxes Payable 14,329 17,839
Current Portion of Long-term 358 871
Long-Term Debt 150,000 150,358
Other Long-term Liabilities 25,504 25,483
Financial Assets
Cash and Cash Equivalents $127,043 $56,713
Short-Term Investments 603,296 652,461
Long-Term Marketable Securitie 356,475 201,726

CSE 1,602,047 1,348,784

NFE 705,424 632,435