Stock Analysis on Net
Stock Analysis on Net

Allergan PLC (NYSE:AGN)

This company has been moved to the archive! The financial data has not been updated since May 7, 2020.

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

Allergan PLC, income tax expense (benefit), continuing operations

US$ in thousands

Microsoft Excel
12 months ended: Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
U.S. federal 476,500 (1,024,500) 763,100 (17,500) 14,400
U.S. state 35,600 34,200 (54,800) — 9,700
Non-U.S. 295,200 481,600 410,000 166,200 225,600
Current provision (benefit) 807,300 (508,700) 1,118,300 148,700 249,700
U.S. federal (635,700) (569,900) (6,911,900) (1,218,500) (1,326,200)
U.S. state (131,700) (80,600) (252,300) (132,100) (58,700)
Non-U.S. 106,500 (611,500) (624,500) (695,100) (426,700)
Deferred benefit (660,900) (1,262,000) (7,788,700) (2,045,700) (1,811,600)
Provision (benefit) for income taxes 146,400 (1,770,700) (6,670,400) (1,897,000) (1,561,900)

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

Item Description The company
Current provision (benefit) Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Allergan PLC current provision (benefit) decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.
Deferred benefit Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Allergan PLC deferred benefit increased from 2017 to 2018 and from 2018 to 2019.
Provision (benefit) for income taxes Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Allergan PLC provision (benefit) for income taxes increased from 2017 to 2018 and from 2018 to 2019.

Effective Income Tax Rate (EITR)

Allergan PLC, effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Statutory tax rate 12.50% 12.50% 12.50% 12.50% 12.50%
Earnings subject to U.S. taxes -1.30% 1.80% 17.80% 37.50% 18.50%
Earnings subject to rates different than the statutory rate 5.30% 3.40% -2.50% 18.30% 2.30%
Tax reserves and audit outcomes -2.10% -2.60% -0.40% 0.70% -0.30%
Non-deductible expenses -12.60% -7.40% -0.20% -3.10% -5.40%
Impact of acquisitions and reorganizations 2.60% 15.30% 9.30% -3.10% 0.00%
Tax credits and U.S. special deductions 2.00% 0.90% 1.50% 3.10% 0.50%
Rate changes -0.30% -2.20% 1.20% 7.40% 0.00%
Valuation allowances -8.70% 3.70% -2.20% -6.50% 6.70%
Other -0.30% 0.20% 0.00% 0.20% 0.50%
Effective income tax rate, before impact of U.S. tax reform enactment -2.90% 25.60% 37.00% 67.00% 35.30%
Impact of U.S. tax reform enactment 0.00% 0.20% 27.20% 0.00% 0.00%
Effective income tax rate -2.90% 25.80% 64.20% 67.00% 35.30%

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

Item Description The company
Effective income tax rate, before impact of U.S. tax reform enactment Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Allergan PLC effective income tax rate, before impact of U.S. tax reform enactment decreased from 2017 to 2018 and from 2018 to 2019.

Components of Deferred Tax Assets and Liabilities

Allergan PLC, components of deferred tax assets and liabilities

US$ in thousands

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Benefits from net operating and capital loss carryforwards 2,105,200 2,145,800 — — —
Benefits from tax credit and other carryforwards 440,400 377,600 — — —
Benefits from net operating and capital losses and tax credit carryfowards — — 1,005,300 702,000 1,305,800
Inventories, receivables and accruals 496,800 231,800 263,500 433,600 1,023,800
Basis differences in investments 185,500 56,100 1,088,700 — —
Outside basis differences — — — — 5,738,800
Share-based and other compensation 242,800 295,500 315,400 530,100 596,600
Other 183,400 82,400 20,400 64,000 97,900
Deferred tax asset, gross 3,654,100 3,189,200 2,693,300 1,729,700 8,762,900
Valuation allowance (2,079,100) (1,637,900) (403,800) (183,900) (196,200)
Deferred tax asset, net 1,575,000 1,551,300 2,289,500 1,545,800 8,566,700
Property, equipment and intangible assets (4,725,200) (5,487,400) (7,519,100) (12,419,600) (14,080,700)
Basis differences in investments (525,900) (499,900) (731,400) (1,793,700) (2,422,200)
Other (110,700) (2,100) (72,300) (68,300) —
Deferred tax liabilities (5,361,800) (5,989,400) (8,322,800) (14,281,600) (16,502,900)
Deferred taxes (3,786,800) (4,438,100) (6,033,300) (12,735,800) (7,936,200)

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

Item Description The company
Deferred tax asset, gross Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Allergan PLC deferred tax asset, gross increased from 2017 to 2018 and from 2018 to 2019.
Deferred tax asset, net Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Allergan PLC deferred tax asset, net decreased from 2017 to 2018 but then slightly increased from 2018 to 2019.
Deferred taxes Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Allergan PLC deferred taxes increased from 2017 to 2018 and from 2018 to 2019.

Deferred Tax Assets and Liabilities, Classification

Allergan PLC, deferred tax assets and liabilities, classification

US$ in thousands

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Deferred tax assets 576,900 1,063,700 319,100 233,300 49,500
Deferred tax liabilities 4,363,700 5,501,800 6,352,400 12,969,100 7,985,700

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

Item Description The company
Deferred tax assets Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. Allergan PLC deferred tax assets increased from 2017 to 2018 but then slightly decreased from 2018 to 2019 not reaching 2017 level.
Deferred tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. Allergan PLC deferred tax liabilities decreased from 2017 to 2018 and from 2018 to 2019.

Adjustments to Financial Statements: Removal of Deferred Taxes

Allergan PLC, adjustments to financial statements

US$ in thousands

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Adjustment to Total Assets
Total assets (as reported) 94,699,100 101,787,600 118,341,900 128,986,300 135,840,700
Less: Noncurrent deferred tax assets, net 576,900 1,063,700 319,100 233,300 49,500
Total assets (adjusted) 94,122,200 100,723,900 118,022,800 128,753,000 135,791,200
Adjustment to Total Liabilities
Total liabilities (as reported) 36,502,700 36,656,600 44,504,800 52,785,800 59,251,400
Less: Noncurrent deferred tax liabilities, net 4,363,700 5,501,800 6,352,400 12,969,100 7,985,700
Total liabilities (adjusted) 32,139,000 31,154,800 38,152,400 39,816,700 51,265,700
Adjustment to Shareholders’ Equity
Shareholders’ equity (as reported) 58,173,600 65,114,100 73,821,100 76,192,700 76,591,400
Less: Net deferred tax assets (liabilities) (3,786,800) (4,438,100) (6,033,300) (12,735,800) (7,936,200)
Shareholders’ equity (adjusted) 61,960,400 69,552,200 79,854,400 88,928,500 84,527,600
Adjustment to Net Income (loss) Attributable To Shareholders
Net income (loss) attributable to shareholders (as reported) (5,271,000) (5,096,400) (4,125,500) 14,973,400 3,915,200
Add: Deferred income tax expense (benefit) (660,900) (1,262,000) (7,788,700) (2,045,700) (1,811,600)
Net income (loss) attributable to shareholders (adjusted) (5,931,900) (6,358,400) (11,914,200) 12,927,700 2,103,600

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

Allergan PLC, Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Allergan PLC, adjusted financial ratios

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net Profit Margin
Reported net profit margin -32.76% -32.28% -25.88% 102.76% 25.98%
Adjusted net profit margin -36.87% -40.28% -74.74% 88.72% 13.96%
Total Asset Turnover
Reported total asset turnover 0.17 0.16 0.13 0.11 0.11
Adjusted total asset turnover 0.17 0.16 0.14 0.11 0.11
Financial Leverage
Reported financial leverage 1.63 1.56 1.60 1.69 1.77
Adjusted financial leverage 1.52 1.45 1.48 1.45 1.61
Return on Equity (ROE)
Reported ROE -9.06% -7.83% -5.59% 19.65% 5.11%
Adjusted ROE -9.57% -9.14% -14.92% 14.54% 2.49%
Return on Assets (ROA)
Reported ROA -5.57% -5.01% -3.49% 11.61% 2.88%
Adjusted ROA -6.30% -6.31% -10.09% 10.04% 1.55%

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Allergan PLC adjusted net profit margin ratio improved from 2017 to 2018 and from 2018 to 2019.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Allergan PLC adjusted total asset turnover ratio improved from 2017 to 2018 and from 2018 to 2019.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Allergan PLC adjusted financial leverage ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Allergan PLC adjusted ROE improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Allergan PLC adjusted ROA improved from 2017 to 2018 and from 2018 to 2019.

Allergan PLC, Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in thousands)
Net income (loss) attributable to shareholders (5,271,000) (5,096,400) (4,125,500) 14,973,400 3,915,200
Net revenues 16,088,900 15,787,400 15,940,700 14,570,600 15,071,000
Profitability Ratio
Net profit margin1 -32.76% -32.28% -25.88% 102.76% 25.98%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income (loss) attributable to shareholders (5,931,900) (6,358,400) (11,914,200) 12,927,700 2,103,600
Net revenues 16,088,900 15,787,400 15,940,700 14,570,600 15,071,000
Profitability Ratio
Adjusted net profit margin2 -36.87% -40.28% -74.74% 88.72% 13.96%

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

2019 Calculations

1 Net profit margin = 100 × Net income (loss) attributable to shareholders ÷ Net revenues
= 100 × -5,271,000 ÷ 16,088,900 = -32.76%

2 Adjusted net profit margin = 100 × Adjusted net income (loss) attributable to shareholders ÷ Net revenues
= 100 × -5,931,900 ÷ 16,088,900 = -36.87%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Allergan PLC adjusted net profit margin ratio improved from 2017 to 2018 and from 2018 to 2019.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in thousands)
Net revenues 16,088,900 15,787,400 15,940,700 14,570,600 15,071,000
Total assets 94,699,100 101,787,600 118,341,900 128,986,300 135,840,700
Activity Ratio
Total asset turnover1 0.17 0.16 0.13 0.11 0.11
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Net revenues 16,088,900 15,787,400 15,940,700 14,570,600 15,071,000
Adjusted total assets 94,122,200 100,723,900 118,022,800 128,753,000 135,791,200
Activity Ratio
Adjusted total asset turnover2 0.17 0.16 0.14 0.11 0.11

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

2019 Calculations

1 Total asset turnover = Net revenues ÷ Total assets
= 16,088,900 ÷ 94,699,100 = 0.17

2 Adjusted total asset turnover = Net revenues ÷ Adjusted total assets
= 16,088,900 ÷ 94,122,200 = 0.17

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Allergan PLC adjusted total asset turnover ratio improved from 2017 to 2018 and from 2018 to 2019.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in thousands)
Total assets 94,699,100 101,787,600 118,341,900 128,986,300 135,840,700
Shareholders’ equity 58,173,600 65,114,100 73,821,100 76,192,700 76,591,400
Solvency Ratio
Financial leverage1 1.63 1.56 1.60 1.69 1.77
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted total assets 94,122,200 100,723,900 118,022,800 128,753,000 135,791,200
Adjusted shareholders’ equity 61,960,400 69,552,200 79,854,400 88,928,500 84,527,600
Solvency Ratio
Adjusted financial leverage2 1.52 1.45 1.48 1.45 1.61

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

2019 Calculations

1 Financial leverage = Total assets ÷ Shareholders’ equity
= 94,699,100 ÷ 58,173,600 = 1.63

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity
= 94,122,200 ÷ 61,960,400 = 1.52

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Allergan PLC adjusted financial leverage ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in thousands)
Net income (loss) attributable to shareholders (5,271,000) (5,096,400) (4,125,500) 14,973,400 3,915,200
Shareholders’ equity 58,173,600 65,114,100 73,821,100 76,192,700 76,591,400
Profitability Ratio
ROE1 -9.06% -7.83% -5.59% 19.65% 5.11%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income (loss) attributable to shareholders (5,931,900) (6,358,400) (11,914,200) 12,927,700 2,103,600
Adjusted shareholders’ equity 61,960,400 69,552,200 79,854,400 88,928,500 84,527,600
Profitability Ratio
Adjusted ROE2 -9.57% -9.14% -14.92% 14.54% 2.49%

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

2019 Calculations

1 ROE = 100 × Net income (loss) attributable to shareholders ÷ Shareholders’ equity
= 100 × -5,271,000 ÷ 58,173,600 = -9.06%

2 Adjusted ROE = 100 × Adjusted net income (loss) attributable to shareholders ÷ Adjusted shareholders’ equity
= 100 × -5,931,900 ÷ 61,960,400 = -9.57%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Allergan PLC adjusted ROE improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in thousands)
Net income (loss) attributable to shareholders (5,271,000) (5,096,400) (4,125,500) 14,973,400 3,915,200
Total assets 94,699,100 101,787,600 118,341,900 128,986,300 135,840,700
Profitability Ratio
ROA1 -5.57% -5.01% -3.49% 11.61% 2.88%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income (loss) attributable to shareholders (5,931,900) (6,358,400) (11,914,200) 12,927,700 2,103,600
Adjusted total assets 94,122,200 100,723,900 118,022,800 128,753,000 135,791,200
Profitability Ratio
Adjusted ROA2 -6.30% -6.31% -10.09% 10.04% 1.55%

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

2019 Calculations

1 ROA = 100 × Net income (loss) attributable to shareholders ÷ Total assets
= 100 × -5,271,000 ÷ 94,699,100 = -5.57%

2 Adjusted ROA = 100 × Adjusted net income (loss) attributable to shareholders ÷ Adjusted total assets
= 100 × -5,931,900 ÷ 94,122,200 = -6.30%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Allergan PLC adjusted ROA improved from 2017 to 2018 and from 2018 to 2019.