Summary information under US GAAP

The following is a summary of the material adjustments to profit and shareholders’ funds which would be required if US Generally Accepted Accounting Principles (US GAAP) had been applied instead of IFRS.

Summary information under US GAAP

Profit	2006 £m	2005 £m
Profit after taxation for the year under IFRS	5,498	4,816
Profit attributable to minority interests	(109)	(127)
Profit attributable to shareholders under IFRS	5,389	4,689
US GAAP adjustments:
– Product rights and goodwill	(1,391)	(1,682)
– Depreciation and impairment of other assets	(93)	(40)
– Capitalised interest	4	(1)
– Investments	(10)	(2)
– Employee costs	(197)	(121)
– Derivative instruments and hedging	477	(30)
– Restructuring costs	(16)	1
– Taxation	292	538
– Other	–	(16)
Net income under US GAAP before cumulative effect of change in accounting principle	4,455	3,336
Cumulative effect of change in accounting principle	10	–
Net income under US GAAP	4,465	3,336
Earnings per share	2006	2005
Basic net income per share before cumulative effect of change in accounting principle	78.9p	58.8p
Cumulative effect of change in accounting principle per share	0.2p	–
Basic net income per share after cumulative effect of change in accounting principle	79.1p	58.8p
Diluted income per share before cumulative effect of change in accounting principle	78.2p	58.3p
Cumulative effect of change in accounting principle per share	0.2p	–
Diluted net income per share after cumulative effect of change in accounting principle	78.4p	58.3p
Equity shareholders’ funds	2006 £m	2005 £m
Total equity under IFRS	9,648	7,570
Minority interests	(262)	(259)
Shareholders’ equity under IFRS	9,386	7,311
US GAAP adjustments:
– Product rights and goodwill	28,583	30,041
– Fixed assets  and capitalised interest	148	212
– Inventory impairment reversals	(54)	(30)
– Investments	500	576
– Pensions and other post-retirement benefits	35	1,249
– Restructuring costs	39	65
– Derivative instruments	(44)	(33)
– Dividends	(676)	(568)
– Deferred taxation	(3,262)	(4,531)
– Other	(2)	(10)
Shareholders’ equity under US GAAP	34,653	34,282

A summary of the material differences between IFRS and US GAAP that apply to the Group is set out in the Annual Report 2006.