SEPARATION OF BAXALTA INCORPORATED (Tables)

3 Months Ended

Mar. 31, 2016

Summary of Discontinued Operations

Following is a summary of the operating results of Baxalta, which have been reflected as discontinued operations for the three months ended March 31, 2016 and 2015. The assets and liabilities have been classified as held for disposition as of March 31, 2016 and December 31, 2015.

	Three months ended March 31,
(in millions)	2016			2015
Major classes of line items constituting income from discontinued operations before income taxes
Net sales	$	64		$	1,362
Cost of sales		(59	)		(580	)
Marketing and administrative expenses		(20	)		(231	)
Research and development expenses		—			(157	)
Other income and expense items that are not major		—			(2	)
(Loss) income from discontinued operations before income taxes		(15	)		392
Gain on disposal of discontinued operations		17			—
Income tax expense		9			96
(Loss) income from discontinued operations, net of tax	$	(7	)	$	296

	March 31,		December 31,
(in millions)	2016		2015
Carrying amounts of major classes of assets included as part of discontinued operations
Accounts and other current receivables, net		$   99		$ 228
Inventories		9		8
Property, plant, and equipment, net		1		2
Other		2		7
Total assets of the disposal group		$  111		$ 245
Carrying amounts of major classes of liabilities included as part of discontinued operations
Accounts payable and accrued liabilities		$     2		$  46
Other long-term liabilities		8		—
Total liabilities of the disposal group		$   10		$  46