Celgene Corp., adjustment to net income

US$ in millions

12 months ended:	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Net income (as reported)	4,046)	2,940)	1,999)	1,602)	2,000)
Add: Net unrealized gains (losses) on available for sale debt marketable securities	7)	418)	(128)	(189)	324)
Net income (adjusted)	4,053)	3,358)	1,872)	1,413)	2,324)

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Celgene Corp., adjusted profitability ratios

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Net Profit Margin
Reported net profit margin	26.51%	22.66%	17.87%	17.49%	26.44%
Adjusted net profit margin	26.55%	25.88%	16.73%	15.42%	30.72%
Return on Equity (ROE)
Reported ROE	65.67%	42.48%	30.29%	27.07%	30.65%
Adjusted ROE	65.78%	48.52%	28.36%	23.87%	35.61%
Return on Assets (ROA)
Reported ROA	11.40%	9.75%	7.12%	5.92%	11.53%
Adjusted ROA	11.42%	11.14%	6.66%	5.22%	13.40%

Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Celgene Corp. adjusted net profit margin ratio improved from 2016 to 2017 and from 2017 to 2018.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Celgene Corp. adjusted ROE improved from 2016 to 2017 and from 2017 to 2018.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	Celgene Corp. adjusted ROA improved from 2016 to 2017 and from 2017 to 2018.

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	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
As Reported
Selected Financial Data (US$ in millions)
Net income	4,046)	2,940)	1,999)	1,602)	2,000)
Net product sales	15,265)	12,973)	11,185)	9,161)	7,564)
Profitability Ratio
Net profit margin¹	26.51%	22.66%	17.87%	17.49%	26.44%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income	4,053)	3,358)	1,872)	1,413)	2,324)
Net product sales	15,265)	12,973)	11,185)	9,161)	7,564)
Profitability Ratio
Adjusted net profit margin²	26.55%	25.88%	16.73%	15.42%	30.72%

2018 Calculations

¹ Net profit margin = 100 × Net income ÷ Net product sales
= 100 × 4,046 ÷ 15,265 = 26.51%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Net product sales
= 100 × 4,053 ÷ 15,265 = 26.55%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Celgene Corp. adjusted net profit margin ratio improved from 2016 to 2017 and from 2017 to 2018.

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
As Reported
Selected Financial Data (US$ in millions)
Net income	4,046)	2,940)	1,999)	1,602)	2,000)
Stockholders’ equity	6,161)	6,921)	6,599)	5,919)	6,525)
Profitability Ratio
ROE¹	65.67%	42.48%	30.29%	27.07%	30.65%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income	4,053)	3,358)	1,872)	1,413)	2,324)
Stockholders’ equity	6,161)	6,921)	6,599)	5,919)	6,525)
Profitability Ratio
Adjusted ROE²	65.78%	48.52%	28.36%	23.87%	35.61%

2018 Calculations

¹ ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 4,046 ÷ 6,161 = 65.67%

² Adjusted ROE = 100 × Adjusted net income ÷ Stockholders’ equity
= 100 × 4,053 ÷ 6,161 = 65.78%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Celgene Corp. adjusted ROE improved from 2016 to 2017 and from 2017 to 2018.

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
As Reported
Selected Financial Data (US$ in millions)
Net income	4,046)	2,940)	1,999)	1,602)	2,000)
Total assets	35,480)	30,141)	28,086)	27,053)	17,340)
Profitability Ratio
ROA¹	11.40%	9.75%	7.12%	5.92%	11.53%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income	4,053)	3,358)	1,872)	1,413)	2,324)
Total assets	35,480)	30,141)	28,086)	27,053)	17,340)
Profitability Ratio
Adjusted ROA²	11.42%	11.14%	6.66%	5.22%	13.40%

2018 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 4,046 ÷ 35,480 = 11.40%

² Adjusted ROA = 100 × Adjusted net income ÷ Total assets
= 100 × 4,053 ÷ 35,480 = 11.42%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	Celgene Corp. adjusted ROA improved from 2016 to 2017 and from 2017 to 2018.

Celgene Corp. (NASDAQ:CELG)

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