NOTE 18

QUARTERLY FINANCIAL RESULTS AND MARKET FOR THE COMPANY’S STOCK (UNAUDITED)

years ended December 31 (in millions, except per share data)	First quarter			Second quarter		Third quarter			Fourth quarter		Full year
2016
Net sales	$	2,375		$	2,585	$	2,558		$	2,645	$	10,163
Gross margin¹		965			972		1,071			1,102		4,110
Income from continuing operations¹		3,387			1,212		127			240		4,966
Income from continuing operations per common share¹
Basic		6.17			2.21		0.23			0.44		9.10
Diluted		6.13			2.19		0.23			0.44		9.01
(Loss) income from discontinued operations, net of tax		(7	)		—		3			3		(1	)
(Loss) income from discontinued operations per common share
Basic		(0.01	)		0.00		0.01			0.01		(0.01	)
Diluted		(0.01	)		0.00		0.01			0.00		0.00
Net income¹		3,380			1,212		130			243		4,965
Net income per common share¹
Basic		6.16			2.21		0.24			0.45		9.09
Diluted		6.12			2.19		0.24			0.44		9.01
Cash dividends declared per common share		0.115			0.13		0.13			0.13		0.505
Market price per common share
High		41.28			46.39		49.03			49.16		49.16
Low		34.76			41.31		45.09			43.63		34.76
2015
Net sales	$	2,403		$	2,475	$	2,487		$	2,603	$	9,968
Gross margin²		1,019			1,021		1,034			1,072		4,146
Income from continuing operations²		134			74		2			183		393
Income from continuing operations per common share²
Basic		0.25			0.14		0.00			0.33		0.72
Diluted		0.24			0.13		0.00			0.33		0.72
Income from discontinued operations, net of tax		296			258		(1	)		22		575
Income from discontinued operations per common share
Basic		0.54			0.47		0.00			0.04		1.06
Diluted		0.54			0.47		0.00			0.04		1.04
Net income²		430			332		1			205		968
Net income per common share²
Basic		0.79			0.61		0.00			0.37		1.78
Diluted		0.78			0.60		0.00			0.37		1.76
Cash dividends declared per common share		0.52			0.52		0.115			0.115		1.27
Market price per common share
High³		38.97			39.05		43.44			38.79		43.44
Low³		35.84			34.59		33.25			32.18		32.18

The first quarter of 2016 included benefits of $3.1 billion related to business optimization, separation-related costs, Retained Stake transactions, a loss on debt extinguishment, and product-related items. The second quarter of 2016 included benefits of $1.0 billion related to business optimization, separation-related costs, Retained Stake transactions, and asset impairment. The third quarter of 2016 included charges of $155 million related to business optimization, separation-related costs, a loss on debt extinguishment, and a tax matter. The fourth quarter of 2016 included charges of $47 million related to business optimization, separation-related costs, and reserve items and adjustments.

The first quarter of 2015 included charges of $29 million related to business optimization, Gambro integration costs, and separation-related costs. The second quarter of 2015 included benefits of $5 million related to business optimization, Gambro integration costs, separation-related costs, and tax and legal reserves. The third quarter of 2015 included charges of $191 million related to business optimization, Gambro integration costs, separation-related costs, a loss on debt extinguishment, and product-related items. The fourth quarter of 2015 included $17 million related to business optimization, Gambro integration costs, product-related items, separation-related costs, and reserve items and adjustments.

³	All stock prices for periods preceding the July 1, 2015 separation of Baxalta are adjusted to reflect the high or low adjusted closing price for the period.