Analysis of Geographic Areas
Allergan Inc. operates in 5 regions: United States; Europe; Latin America; Asia Pacific; and Other.
Area Asset Turnover
Allergan Inc., asset turnover by geographic area
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | |
|---|---|---|---|---|---|
| United States | 1.01 | 0.90 | 0.94 | 0.92 | 0.94 |
| Europe | 2.25 | 2.17 | 2.08 | 2.16 | 1.65 |
| Latin America | 7.73 | 7.34 | 7.18 | 6.58 | 4.98 |
| Asia Pacific | 10.83 | 9.06 | 8.34 | 7.67 | 5.93 |
| Other | 158.42 | 195.14 | 118.59 | 85.54 | 57.70 |
Based on: 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).
- United States
- The asset turnover ratio in the United States demonstrates relative stability with minor fluctuations. It started at 0.94 in 2010, experienced a slight dip to 0.9 by the end of 2013, and rose to 1.01 in 2014. This indicates a generally consistent level of asset utilization with a modest improvement in the final year.
- Europe
- The European asset turnover ratio shows an upward trend over the period. Beginning at 1.65 in 2010, it increased broadly to 2.25 by 2014, with minor variability between 2012 and 2013. This suggests improving efficiency in how assets are being employed in this region.
- Latin America
- Latin America exhibits a positive and steady increase in asset turnover ratios over the years. Starting from a ratio of 4.98 in 2010, the figure rose progressively to 7.73 in 2014. This consistent growth indicates enhanced asset utilization and possibly expanding operations or improved operational efficiency in the region.
- Asia Pacific
- The Asia Pacific region displays a strong and continuous upward trend in asset turnover ratios. The ratio moved from 5.93 in 2010 to reach 10.83 in 2014. This represents significant improvements in how effectively assets are used, signaling rapid growth or better operational management within this area.
- Other
- The category labeled "Other" shows the most volatility and substantial increases in asset turnover ratios. Beginning at 57.7 in 2010, the ratio surged dramatically to 195.14 in 2013 before declining to 158.42 in 2014. This large variation suggests considerable changes in asset turnover effectiveness, possibly due to structural changes, one-time adjustments, or extraordinary factors impacting this grouping of assets.
Area Asset Turnover: United States
Allergan Inc.; United States; area asset turnover calculation
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Product net sales | 4,520,500) | 3,839,400) | 3,478,400) | 3,221,600) | 3,017,000) |
| Long-lived assets | 4,497,000) | 4,274,700) | 3,718,600) | 3,500,900) | 3,222,400) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 1.01 | 0.90 | 0.94 | 0.92 | 0.94 |
Based on: 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).
1 2014 Calculation
Area asset turnover = Product net sales ÷ Long-lived assets
= 4,520,500 ÷ 4,497,000 = 1.01
- Product Net Sales
- The product net sales in the United States experienced a consistent upward trend over the five-year period. Beginning at approximately $3.02 billion in 2010, sales increased year-over-year, reaching about $4.52 billion by the end of 2014. This represents a substantial growth of nearly 50%, indicating strong revenue expansion in this geographic area.
- Long-lived Assets
- Long-lived assets also showed a positive growth trajectory during the same timeframe. The asset base rose from roughly $3.22 billion in 2010 to around $4.50 billion in 2014. This gradual increase reflects ongoing investments or capital expenditures, with particularly notable increments between 2012 and 2014.
- Area Asset Turnover
- The area asset turnover ratio displayed some variability but generally remained close to unity, fluctuating between 0.90 and 1.01. The ratio began at 0.94 in 2010, dipped slightly to 0.90 in 2013, and then improved to 1.01 in 2014. The rise in asset turnover in the final year suggests a more efficient utilization of assets to generate sales, potentially contributing to the higher product net sales observed that year.
- Overall Analysis
- The overall data indicate that both sales and asset investments grew steadily in the United States region. While the asset base expanded at a somewhat slower pace compared to sales, the improvement in asset turnover towards the end of the period suggests enhanced operational efficiency. The strengthening sales figures alongside a balanced increase in assets point to effective management and growth in this geographic segment.
Area Asset Turnover: Europe
Allergan Inc.; Europe; area asset turnover calculation
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Product net sales | 1,410,300) | 1,237,800) | 1,121,400) | 1,086,600) | 931,600) |
| Long-lived assets | 627,100) | 569,900) | 538,600) | 502,000) | 563,100) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 2.25 | 2.17 | 2.08 | 2.16 | 1.65 |
Based on: 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).
1 2014 Calculation
Area asset turnover = Product net sales ÷ Long-lived assets
= 1,410,300 ÷ 627,100 = 2.25
The data for the Europe geographic area reveals several important financial trends over the five-year period ending in 2014.
- Product Net Sales
- There is a consistent upward trajectory in product net sales, starting at 931,600 thousand US dollars in 2010 and increasing each year to reach 1,410,300 thousand US dollars by the end of 2014. The growth appears steady, with no interruptions or decreases, indicating successful market penetration or expansion activities in the region.
- Long-lived Assets
- Long-lived assets show some variability but overall an increasing trend. After a decrease from 563,100 thousand US dollars in 2010 to 502,000 thousand US dollars in 2011, the asset base expanded gradually to reach 627,100 thousand US dollars in 2014. This suggests reinvestment and growth in long-term capital within the Europe area, possibly reflecting asset acquisitions, upgrades, or capital-intensive projects.
- Area Asset Turnover
- The area asset turnover ratio, which measures the efficiency in generating sales from assets, improved significantly from 1.65 in 2010 to 2.25 in 2014. This indicates enhanced operational efficiency over the period, with each unit of asset generating more sales revenue than before. Notably, the ratio experienced a sharp increase in 2011, followed by a relatively stable yet slightly upward trend thereafter.
In summary, the Europe region experienced robust sales growth combined with an increase in asset base and improved asset utilization efficiency from 2010 through 2014. These trends suggest effective management of resources and successful expansion in sales within the geographic area.
Area Asset Turnover: Latin America
Allergan Inc.; Latin America; area asset turnover calculation
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Product net sales | 382,000) | 383,000) | 399,200) | 390,700) | 323,700) |
| Long-lived assets | 49,400) | 52,200) | 55,600) | 59,400) | 65,000) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 7.73 | 7.34 | 7.18 | 6.58 | 4.98 |
Based on: 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).
1 2014 Calculation
Area asset turnover = Product net sales ÷ Long-lived assets
= 382,000 ÷ 49,400 = 7.73
- Product net sales
-
Product net sales in the Latin America geographic area showed an overall upward trend from 2010 to 2012, increasing from 323,700 thousand US dollars to 399,200 thousand US dollars. However, after reaching a peak in 2012, sales slightly declined in the subsequent years, falling to 383,000 thousand in 2013 and remaining relatively stable at 382,000 thousand in 2014.
- Long-lived assets
-
Long-lived assets consistently decreased over the five-year period, starting from 65,000 thousand US dollars in 2010 and declining annually to 49,400 thousand US dollars by the end of 2014. This steady reduction indicates a possible divestment or depreciation of fixed assets within the region.
- Area asset turnover
-
The area asset turnover ratio demonstrated a consistent increase across all years measured. Beginning at 4.98 in 2010, the ratio rose to 7.73 by the end of 2014. This trend suggests improved efficiency in utilizing assets to generate sales in the Latin America region, coinciding with declining asset values and relatively stable sales.
- Overall insights
-
The data indicates a pattern of improving asset efficiency, as evidenced by the increasing asset turnover ratio alongside decreasing long-lived assets. While product net sales initially increased, they plateaued and slightly declined after 2012. This combination may reflect strategic shifts such as asset optimization or market challenges impacting sales growth after the early years in the period analyzed.
Area Asset Turnover: Asia Pacific
Allergan Inc.; Asia Pacific; area asset turnover calculation
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Product net sales | 512,300) | 464,100) | 448,900) | 408,700) | 333,800) |
| Long-lived assets | 47,300) | 51,200) | 53,800) | 53,300) | 56,300) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 10.83 | 9.06 | 8.34 | 7.67 | 5.93 |
Based on: 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).
1 2014 Calculation
Area asset turnover = Product net sales ÷ Long-lived assets
= 512,300 ÷ 47,300 = 10.83
- Product Net Sales
- The product net sales in the Asia Pacific region show a consistent upward trend over the observed years. Starting at US$333.8 million in 2010, the sales increased steadily each year, reaching US$512.3 million by 2014. This represents an overall growth of approximately 53.5% over the five-year period, indicating strong and sustained revenue expansion in this geographic segment.
- Long-lived Assets
- The value of long-lived assets in the region exhibited a declining pattern during the same timeframe. From US$56.3 million in 2010, the assets decreased gradually, finishing at US$47.3 million in 2014. The reduction totals approximately 16%, implying possible divestitures, asset depreciation, or optimized capital utilization affecting this asset category.
- Area Asset Turnover
- The area asset turnover ratio demonstrated a marked improvement over the five years. Beginning at 5.93 in 2010, the ratio increased substantially each year, reaching 10.83 by 2014. This nearly doubled asset turnover ratio suggests enhanced efficiency in generating sales from the region’s asset base, possibly reflecting better asset management or increased operational productivity.
Area Asset Turnover: Other
Allergan Inc.; Other; area asset turnover calculation
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Product net sales | 301,000) | 273,200) | 260,900) | 239,500) | 213,500) |
| Long-lived assets | 1,900) | 1,400) | 2,200) | 2,800) | 3,700) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 158.42 | 195.14 | 118.59 | 85.54 | 57.70 |
Based on: 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).
1 2014 Calculation
Area asset turnover = Product net sales ÷ Long-lived assets
= 301,000 ÷ 1,900 = 158.42
The data reveals several significant trends pertaining to the "Other" geographic area over the five-year period ending in 2014.
- Product Net Sales
- There is a consistent upward trajectory in product net sales, increasing each year from 213,500 thousand U.S. dollars in 2010 to 301,000 thousand in 2014. This represents an overall growth of approximately 41% over the period, indicating expanding sales in the area.
- Long-Lived Assets
- Contrasting with sales growth, the value of long-lived assets shows a declining trend from 3,700 thousand U.S. dollars in 2010 down to a low of 1,400 thousand in 2013 before a slight rebound to 1,900 thousand in 2014. This decline may reflect asset disposals, depreciation, or reduced capital investment in the geographic segment during this timeframe.
- Area Asset Turnover
- The asset turnover ratio exhibits substantial increases, moving from 57.7 in 2010 to a peak of 195.14 in 2013, followed by a moderate decrease to 158.42 in 2014. This ratio measures the efficiency of the asset base in generating sales. The sharp rise suggests that the company has been increasingly effective at leveraging its assets to produce revenue despite the shrinking asset base.
Overall, the data indicates strong sales growth paired with a declining asset base, leading to improved asset utilization in this geographic area. The efficiency gains imply strategic optimization of resources or operational improvements that enable more revenue generation per unit of asset. The slight decrease in asset turnover in the final year may warrant monitoring to assess whether it represents a temporary shift or a longer-term trend.
Area Capital Expenditures to Depreciation
Allergan Inc., capital expenditures to depreciation by geographic area
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | |
|---|---|---|---|---|---|
| United States | 0.53 | 0.45 | 0.39 | 0.34 | 0.31 |
| Europe | 2.81 | 1.61 | 1.24 | 0.92 | 0.70 |
| Latin America | 0.97 | 0.99 | 0.71 | 0.67 | 0.81 |
| Asia Pacific | 0.46 | 0.46 | 0.43 | 0.47 | 1.03 |
| Other | 0.00 | 0.00 | 0.13 | 0.00 | 0.13 |
Based on: 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).
The analysis of the annual capital expenditures to depreciation ratios across different geographic regions reveals distinct trends over the five-year period ending December 31, 2014.
- United States
- The ratio demonstrates a consistent upward trajectory from 0.31 in 2010 to 0.53 in 2014. This suggests a progressive increase in capital expenditures relative to depreciation, indicating potential expansion or reinvestment activities in this region.
- Europe
- Europe shows the most significant growth, with the ratio escalating sharply from 0.70 in 2010 to 2.81 in 2014. This marked increase points to substantial capital investment relative to depreciation, possibly reflecting aggressive growth strategies or substantial new asset acquisition within the region during the period.
- Latin America
- The ratio in Latin America fluctuates modestly but remains relatively stable overall, moving from 0.81 in 2010, dipping to 0.67 in 2011, and then hovering around the 0.70 to 0.99 range through 2014. This stability suggests consistent capital expenditure levels relative to asset depreciation without significant expansion or contraction in this market.
- Asia Pacific
- Asia Pacific shows a declining trend initially, dropping from a high 1.03 in 2010 to 0.43 in 2012, and maintaining a steady ratio around 0.46 through 2014. This decline followed by stabilization might indicate an early phase of heavy investment followed by a period of maintenance-level expenditure relative to depreciation.
- Other
- The data for the "Other" category is sparse, with a ratio of 0.13 in 2010 and 2012 only, and missing values for other years. The available information suggests low capital expenditures relative to depreciation in these smaller or less significant markets, but the absence of data precludes a definitive trend analysis.
Overall, the data indicates differentiated investment patterns among geographic areas, with Europe experiencing the most pronounced increase in capital expenditures relative to depreciation, the United States showing moderate growth, Latin America maintaining stable investment levels, and Asia Pacific adjusting to a lower but steady capital expenditure ratio post-2010.
Area Capital Expenditures to Depreciation: United States
Allergan Inc.; United States; area capital expenditures to depreciation calculation
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Capital expenditures | 98,400) | 82,300) | 75,700) | 63,600) | 62,800) |
| Depreciation and amortization | 187,300) | 181,200) | 194,700) | 187,900) | 202,200) |
| Area Financial Ratio | |||||
| Area capital expenditures to depreciation1 | 0.53 | 0.45 | 0.39 | 0.34 | 0.31 |
Based on: 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).
1 2014 Calculation
Area capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= 98,400 ÷ 187,300 = 0.53
- Capital Expenditures
- There is a clear upward trend in capital expenditures over the five-year period. Starting at US$62,800 thousand in 2010, the expenditures increased gradually each year, reaching US$98,400 thousand in 2014. This represents an overall increase of approximately 56.7%, indicating a substantial rise in investment in capital assets within the United States geographic area.
- Depreciation and Amortization
- Depreciation and amortization exhibit a relatively stable pattern, with slight fluctuations. Beginning at US$202,200 thousand in 2010, the figure decreased to US$181,200 thousand in 2013 before a modest recovery to US$187,300 thousand in 2014. Overall, this reflects minor variability but no significant upward or downward trend across the period.
- Area Capital Expenditures to Depreciation Ratio
- The ratio of capital expenditures to depreciation steadily increased throughout the period, from 0.31 in 2010 to 0.53 in 2014. This indicates that capital spending has grown at a faster rate relative to depreciation expenses, suggesting an increased emphasis on asset renewal or expansion compared to the rate at which assets are being depreciated.
- Summary and Insights
- The data reflects a strategic focus on increased capital investment in the United States area, as evidenced by consistent growth in capital expenditures. Despite stable depreciation and amortization costs, the rising capital expenditure to depreciation ratio highlights an intensifying investment activity, which may imply expansion, modernization, or enhancement of operational capacity. This pattern demonstrates a commitment to maintaining or improving capital infrastructure over time.
Area Capital Expenditures to Depreciation: Europe
Allergan Inc.; Europe; area capital expenditures to depreciation calculation
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Capital expenditures | 136,400) | 79,700) | 59,500) | 46,300) | 29,300) |
| Depreciation and amortization | 48,500) | 49,600) | 48,100) | 50,300) | 42,000) |
| Area Financial Ratio | |||||
| Area capital expenditures to depreciation1 | 2.81 | 1.61 | 1.24 | 0.92 | 0.70 |
Based on: 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).
1 2014 Calculation
Area capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= 136,400 ÷ 48,500 = 2.81
The financial data for the Europe geographic area reveals several notable trends concerning capital expenditures and depreciation and amortization over the period from 2010 to 2014.
- Capital Expenditures
- There is a clear upward trend in capital expenditures, which increased consistently each year. Starting from US$29,300 thousand in 2010, the expenditures more than quadrupled by 2014, reaching US$136,400 thousand. This significant rise indicates an expanding investment focus in the region over the analyzed period.
- Depreciation and Amortization
- The depreciation and amortization figures show a relatively stable pattern, fluctuating within a narrow range from US$42,000 thousand in 2010 to US$48,500 thousand in 2014. Despite minor variations, these expenses did not exhibit a pronounced upward or downward trend during the five years.
- Capital Expenditures to Depreciation Ratio
- The ratio of capital expenditures to depreciation increased substantially from 0.7 in 2010 to 2.81 in 2014. This indicates that capital spending grew at a much faster pace than the accumulated depreciation and amortization. The increasing ratio suggests intensified asset investment or renewal activity relative to the expense recognized for usage and aging of existing assets.
In summary, while the depreciation and amortization expense remained fairly constant, the sharply rising capital expenditures and the corresponding increase in the capital expenditures to depreciation ratio point to strategic reinvestment and potentially expansion initiatives in Europe during these years.
Area Capital Expenditures to Depreciation: Latin America
Allergan Inc.; Latin America; area capital expenditures to depreciation calculation
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Capital expenditures | 6,900) | 7,600) | 6,000) | 6,600) | 6,700) |
| Depreciation and amortization | 7,100) | 7,700) | 8,400) | 9,800) | 8,300) |
| Area Financial Ratio | |||||
| Area capital expenditures to depreciation1 | 0.97 | 0.99 | 0.71 | 0.67 | 0.81 |
Based on: 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).
1 2014 Calculation
Area capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= 6,900 ÷ 7,100 = 0.97
- Capital Expenditures
- The capital expenditures in the Latin America region experienced fluctuations over the five-year period. Starting at US$6,700 thousand in 2010, there was a slight decline to US$6,600 thousand in 2011, followed by a further decrease to US$6,000 thousand in 2012. In 2013, capital expenditures increased notably to US$7,600 thousand, before declining again to US$6,900 thousand in 2014. Overall, the trend reveals intermittent adjustments with a peak in 2013.
- Depreciation and Amortization
- Depreciation and amortization expenses showed variability and an overall downward trend in the latter part of the period. The figures increased from US$8,300 thousand in 2010 to a peak of US$9,800 thousand in 2011, then decreased to US$8,400 thousand in 2012. This amount continued to decline to US$7,700 thousand in 2013 and further to US$7,100 thousand in 2014. The pattern indicates a peak early in the period, followed by a steady reduction through to 2014.
- Area Capital Expenditures to Depreciation Ratio
- This ratio, which compares capital expenditures to depreciation, fluctuated between 0.67 and 0.99, indicating changes in investment relative to asset wear and tear. Starting at 0.81 in 2010, the ratio declined to its lowest point of 0.67 in 2011. It then rose gradually to 0.71 in 2012, and sharply increased to 0.99 in 2013, suggesting a near equivalence between expenditures and depreciation that year. In 2014, the ratio slightly decreased to 0.97, maintaining a high level relative to earlier years. This suggests that in the latter years, capital investments were nearly matching the rate of asset depreciation, possibly indicating efforts to sustain or update asset bases.
Area Capital Expenditures to Depreciation: Asia Pacific
Allergan Inc.; Asia Pacific; area capital expenditures to depreciation calculation
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Capital expenditures | 2,200) | 2,300) | 2,000) | 2,100) | 3,900) |
| Depreciation and amortization | 4,800) | 5,000) | 4,600) | 4,500) | 3,800) |
| Area Financial Ratio | |||||
| Area capital expenditures to depreciation1 | 0.46 | 0.46 | 0.43 | 0.47 | 1.03 |
Based on: 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).
1 2014 Calculation
Area capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= 2,200 ÷ 4,800 = 0.46
- Capital expenditures
- The capital expenditures in the Asia Pacific region exhibit a downward trend from 2010 to 2014. Starting at $3,900 thousand in 2010, the expenditure decreased sharply in 2011 to $2,100 thousand and then stabilized around $2,000 to $2,300 thousand in the subsequent years. This pattern suggests a significant reduction in investment or acquisition of fixed assets after 2010, with relatively consistent spending in the later years.
- Depreciation and amortization
- Depreciation and amortization expenses increased steadily from 2010 through 2013, rising from $3,800 thousand to a peak of $5,000 thousand. In 2014, there was a slight decline to $4,800 thousand. This overall increasing trend reflects either higher capital asset bases or changes in asset valuation and useful life estimates, despite the reduced capital expenditures noted previously.
- Area capital expenditures to depreciation ratio
- The ratio of capital expenditures to depreciation demonstrates a significant decline from 1.03 in 2010 to approximately 0.46 in the years 2011 through 2014. This indicates that capital expenditures have fallen to less than half of the depreciation and amortization expense consistently since 2011. Such a trend may imply reduced reinvestment relative to wear and tear or consumption of existing assets, which could affect the long-term asset base.
Area Capital Expenditures to Depreciation: Other
Allergan Inc.; Other; area capital expenditures to depreciation calculation
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Capital expenditures | —) | —) | 100) | —) | 100) |
| Depreciation and amortization | 400) | 600) | 800) | 900) | 800) |
| Area Financial Ratio | |||||
| Area capital expenditures to depreciation1 | 0.00 | 0.00 | 0.13 | 0.00 | 0.13 |
Based on: 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).
1 2014 Calculation
Area capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= 0 ÷ 400 = 0.00
- Capital expenditures
- The capital expenditures exhibited limited and irregular activity over the analyzed period. Values were recorded as 100 thousand US dollars in 2010 and again in 2012, while data for the years 2011, 2013, and 2014 were absent, indicating either no expenditures or unreported figures. This pattern suggests sporadic investment in capital assets within the "Other" geographic area.
- Depreciation and amortization
- Depreciation and amortization expenses showed a consistent declining trend from 2010 through 2014. Starting at 800 thousand US dollars in 2010, the expense increased slightly to 900 thousand in 2011, then decreased steadily to 800 thousand in 2012, 600 thousand in 2013, and reached a low of 400 thousand by 2014. This downward trajectory may reflect diminishing asset bases or changes in amortization policies within the segment.
- Area capital expenditures to depreciation ratio
- The ratio of capital expenditures to depreciation was only available for 2010 and 2012, both reflecting a value of 0.13. The absence of data for other years makes trend analysis limited. Nonetheless, the consistent ratio during the provided years suggests a stable proportion of capital investments relative to asset depreciation for those periods.
Product net sales
Allergan Inc., product net sales by geographic area
US$ in thousands
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | |
|---|---|---|---|---|---|
| United States | 4,520,500) | 3,839,400) | 3,478,400) | 3,221,600) | 3,017,000) |
| Europe | 1,410,300) | 1,237,800) | 1,121,400) | 1,086,600) | 931,600) |
| Latin America | 382,000) | 383,000) | 399,200) | 390,700) | 323,700) |
| Asia Pacific | 512,300) | 464,100) | 448,900) | 408,700) | 333,800) |
| Other | 301,000) | 273,200) | 260,900) | 239,500) | 213,500) |
| Total | 7,126,100) | 6,197,500) | 5,708,800) | 5,347,100) | 4,819,600) |
Based on: 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).
- United States
- The net sales in the United States demonstrated a consistent upward trend throughout the period from 2010 to 2014. Starting at approximately $3.02 billion, sales increased steadily each year, reaching about $4.52 billion by 2014. This represents a cumulative growth of nearly 50%, indicating a strong and expanding market presence in this region.
- Europe
- Europe also showed a positive growth trajectory in net sales during the examined timeframe. Beginning at roughly $932 million in 2010, sales rose to $1.41 billion by 2014. Although the growth rate was moderate compared to the United States, it still reflected a solid increase of around 51%, underscoring gradual market expansion and/or improved product acceptance.
- Latin America
- Latin America exhibited a more fluctuating pattern. Sales increased from $324 million in 2010 to a peak of $399 million in 2012 but then declined slightly to $382 million by 2014. This indicates some volatility, possibly due to economic or market challenges, resulting in an overall modest net increase over the five-year period.
- Asia Pacific
- The Asia Pacific region experienced steady and consistent growth. Starting at $334 million in 2010, sales increased each year to $512 million by 2014. This represents an approximate 53% increase, highlighting expanding business activities and possibly an increasing demand for the company’s products in this region.
- Other
- Other geographic areas showed stable growth trends with net sales rising from $214 million in 2010 to $301 million in 2014. This 41% increase suggests incremental gains contributing positively to overall sales, despite being a smaller portion of the total revenue.
- Total Net Sales
- Total net sales across all geographic areas demonstrated strong and consistent growth, increasing from approximately $4.82 billion in 2010 to about $7.13 billion in 2014. The total growth of nearly 48% over the period reflects overall business expansion, driven primarily by significant increases in the United States, Europe, and Asia Pacific regions.
Long-lived assets
Allergan Inc., long-lived assets by geographic area
US$ in thousands
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | |
|---|---|---|---|---|---|
| United States | 4,497,000) | 4,274,700) | 3,718,600) | 3,500,900) | 3,222,400) |
| Europe | 627,100) | 569,900) | 538,600) | 502,000) | 563,100) |
| Latin America | 49,400) | 52,200) | 55,600) | 59,400) | 65,000) |
| Asia Pacific | 47,300) | 51,200) | 53,800) | 53,300) | 56,300) |
| Other | 1,900) | 1,400) | 2,200) | 2,800) | 3,700) |
| Total | 5,222,700) | 4,949,400) | 4,368,800) | 4,118,400) | 3,910,500) |
Based on: 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).
The analysis of the long-lived assets by geographic area over the five-year period reveals several important trends and insights.
- United States
- The United States consistently holds the largest share of long-lived assets. There is a steady and significant upward trend from 3,222,400 thousand US dollars in 2010 to 4,497,000 thousand US dollars in 2014. This indicates ongoing investment or asset accumulation in the US, with an overall increase of approximately 39.5% over the five years.
- Europe
- Europe shows a generally positive trend with some fluctuations. The assets decreased from 563,100 thousand US dollars in 2010 to 502,000 thousand in 2011 but subsequently increased every year thereafter, reaching 627,100 thousand US dollars in 2014. This growth from 2011 onwards suggests renewed investment or improvement in asset holdings in this region, resulting in an overall growth of about 11.3% from 2010 to 2014.
- Latin America
- The assets in Latin America exhibit a continuous decline over the period, falling from 65,000 thousand US dollars in 2010 to 49,400 thousand US dollars in 2014. This steady decrease suggests divestment or depreciation of assets in this region, amounting to a reduction of approximately 24% over five years.
- Asia Pacific
- The Asia Pacific region shows a slightly declining trend, with assets decreasing from 56,300 thousand US dollars in 2010 to 47,300 thousand US dollars in 2014. The changes are relatively small but consistent, indicating either limited investment growth or asset depreciation in this area, resulting in a decline of some 16% over the period.
- Other Regions
- Assets classified as "Other" start very low at 3,700 thousand US dollars in 2010 and decline further to 1,400 thousand in 2013 before slightly increasing to 1,900 thousand in 2014. The amounts are minimal and show overall volatility with no clear growth trend, suggesting minor asset presence or fluctuating investments in unspecified regions.
- Total Long-Lived Assets
- The total long-lived assets increased steadily from 3,910,500 thousand US dollars in 2010 to 5,222,700 thousand US dollars in 2014, marking an overall growth of approximately 33.5%. This growth is primarily driven by the significant increases in the United States and Europe, which compensate for declines in Latin America, Asia Pacific, and Other areas.
Depreciation and amortization
Allergan Inc., depreciation and amortization by geographic area
US$ in thousands
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | |
|---|---|---|---|---|---|
| United States | 187,300) | 181,200) | 194,700) | 187,900) | 202,200) |
| Europe | 48,500) | 49,600) | 48,100) | 50,300) | 42,000) |
| Latin America | 7,100) | 7,700) | 8,400) | 9,800) | 8,300) |
| Asia Pacific | 4,800) | 5,000) | 4,600) | 4,500) | 3,800) |
| Other | 400) | 600) | 800) | 900) | 800) |
| Total | 248,100) | 244,100) | 256,600) | 253,400) | 257,100) |
Based on: 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).
- United States
- Depreciation and amortization expenses exhibit a generally decreasing trend over the five-year period. Beginning at $202,200 thousand in 2010, the value declines to a low of $181,200 thousand in 2013 before slightly increasing to $187,300 thousand in 2014.
- Europe
- Expenses for Europe show moderate fluctuations without a clear directional trend. Starting at $42,000 thousand in 2010, it rises to a peak of $50,300 thousand in 2011, followed by minor declines and recoveries, ending at $48,500 thousand in 2014.
- Latin America
- There is a noticeable downward trend in Latin America’s depreciation and amortization. From $8,300 thousand in 2010, the amount peaks slightly at $9,800 thousand in 2011 but then continuously decreases to $7,100 thousand by 2014.
- Asia Pacific
- Expenses in the Asia Pacific region display a generally upward trend initially, increasing from $3,800 thousand in 2010 to $5,000 thousand in 2013, followed by a slight decline to $4,800 thousand in 2014.
- Other
- The “Other” category shows a consistent decrease in depreciation and amortization, dropping from $800 thousand in 2010 to $400 thousand in 2014, suggesting a reduction in related asset usage or reclassification.
- Total
- Total depreciation and amortization expenses reflect a general decline during the period. Starting at $257,100 thousand in 2010, the total decreases to $244,100 thousand in 2013, with a modest increase to $248,100 thousand in 2014. This overall decline mirrors the patterns observed primarily in the United States and Latin America segments.
Capital expenditures
Allergan Inc., capital expenditures by geographic area
US$ in thousands
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | |
|---|---|---|---|---|---|
| United States | 98,400) | 82,300) | 75,700) | 63,600) | 62,800) |
| Europe | 136,400) | 79,700) | 59,500) | 46,300) | 29,300) |
| Latin America | 6,900) | 7,600) | 6,000) | 6,600) | 6,700) |
| Asia Pacific | 2,200) | 2,300) | 2,000) | 2,100) | 3,900) |
| Other | —) | —) | 100) | —) | 100) |
| Total | 243,900) | 171,900) | 143,300) | 118,600) | 102,800) |
Based on: 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).
The capital expenditures exhibit notable variations across different geographic regions over the five-year period.
- United States
- Capital expenditures steadily increased from US$62.8 million in 2010 to US$98.4 million in 2014, indicating a consistent upward trend. The growth accelerated particularly between 2013 and 2014.
- Europe
- Europe shows a significant and continuous increase in capital expenditures from US$29.3 million in 2010 to US$136.4 million in 2014. The sharpest rise occurred between 2013 and 2014, where expenditures increased by approximately US$57 million, suggesting a strategic expansion or investment surge in this region.
- Latin America
- Expenditures in Latin America remained relatively stable with minor fluctuations, ranging between US$6 million and US$7.6 million throughout the period. There is no clear upward or downward trend, indicating a consistent but limited investment level.
- Asia Pacific
- The Asia Pacific region experienced a slight decline from US$3.9 million in 2010 to US$2.2 million in 2014, with minor fluctuations in between. This points to a gradual decrease in capital investment in this region during the period analyzed.
- Other
- Capital expenditures categorized as "Other" are minimal and sporadic, with only two recorded values (US$100,000 in 2010 and 2012) and otherwise no reported data, indicating negligible or irregular spending in areas outside the main geographic regions.
- Total
- The total capital expenditures rose substantially from US$102.8 million in 2010 to US$243.9 million in 2014, reflecting an overall strong increase. This growth is primarily driven by the increases in the United States and Europe, with Europe showing the most pronounced percentage growth.
In summary, the data reveals a robust increase in capital expenditures overall, with Europe emerging as the fastest-growing region, while Latin America and Asia Pacific demonstrate relatively static to declining investment levels. The United States maintains steady growth, contributing significantly to the rising total expenditures.