SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)



Dollars in Millions, except per share data	First Quarter			Second Quarter			Third Quarter		Fourth Quarter		Year
2014
Total Revenues	$	3,811		$	3,889		$	3,921	$	4,258	$	15,879
Gross Margin	2,843			2,898			2,914		3,292		11,947
Net Earnings	936			334			732		27		2,029
Net Earnings/(Loss) Attributable to:
Noncontrolling Interest	(1		)	1			11		14		25
BMS	937			333			721		13		2,004

Earnings per Share - Basic^(a)	$	0.57		$	0.20		$	0.43	$	0.01	$	1.21
Earnings per Share - Diluted^(a)	0.56			0.20			0.43		0.01		1.20

Cash dividends declared per common share	$	0.36		$	0.36		$	0.36	$	0.37	$	1.45

Cash and cash equivalents	$	5,225		$	4,282		$	4,851	$	5,571	$	5,571
Marketable securities^(b)	5,392			6,769			6,698		6,272		6,272
Total Assets	33,424			33,503			33,450		33,749		33,749
Long-term debt	7,367			7,372			7,267		7,242		7,242
Equity	15,531			15,379			15,201		14,983		14,983

Dollars in Millions, except per share data	First Quarter			Second Quarter			Third Quarter		Fourth Quarter		Year
2013
Total Revenues	$	3,831		$	4,048		$	4,065	$	4,441	$	16,385
Gross Margin	2,768			2,940			2,890		3,168		11,766
Net Earnings	623			530			692		735		2,580
Net Earnings/(Loss) Attributable to:
Noncontrolling Interest	14			(6		)	—		9		17
BMS	609			536			692		726		2,563

Earnings per Share - Basic^(a)	$	0.37		$	0.33		$	0.42	$	0.44	$	1.56
Earnings per Share - Diluted^(a)	0.37			0.32			0.42		0.44		1.54

Cash dividends declared per common share	$	0.35		$	0.35		$	0.35	$	0.36	$	1.41

Cash and cash equivalents	$	1,355		$	1,821		$	1,771	$	3,586	$	3,586
Marketable securities^(b)	4,420			4,201			4,574		4,686		4,686
Total Assets	35,958			36,252			36,804		38,592		38,592
Long-term debt^(c)	7,180			7,122			6,562		7,981		7,981
Equity	13,699			14,373			14,714		15,236		15,236



(a)	Earnings per share for the quarters may not add to the amounts for the year, as each period is computed on a discrete basis.
(b)	Marketable securities includes current and non-current assets.
(c)	Also includes the current portion of long-term debt.

The following specified items affected the comparability of results in 2014 and 2013:

2014



Dollars in Millions	First Quarter			Second Quarter				Third Quarter			Fourth Quarter			Year
Cost of products sold^(a)	45			39				36			31			151

Additional year of Branded Prescription Drug Fee	—			—				96			—			96
Process standardization implementation costs	3			3				2			1			9
Marketing, selling and administrative	3			3				98			1			105

Upfront, milestone and other payments	15			148				65			50			278
IPRD impairments	33			310				—			—			343
Research and development	48			458				65			50			621

Provision for restructuring	21			16				35			91			163
Gain on sale of product lines, businesses and assets	(259		)	12				(315		)	3			(559		)
Pension curtailments, settlements and special termination benefits	64			45				28			740			877
Acquisition and alliance related items^(b)	16			17				39			—			72
Litigation charges/(recoveries)	25			(23		)		10			15			27
Loss on debt redemption	45			—				—			—			45
Out-licensed intangible asset impairment	—			—				—			11			11
Upfront, milestone and other licensing receipts	—			—			—	—			(10		)	(10		)
Other (income)/expense	(88		)	67				(203		)	850			626

Increase/(decrease) to pretax income	8			567				(4		)	932			1,503

Income tax on items above	(179		)	(102		)		33			(297		)	(545		)
Specified tax charge^(c)	—			—				—			123			123
Income taxes	(179		)	(102		)		33			(174		)	(422		)
Increase/(decrease) to net earnings	$	(171	)	$	465			$	29		$	758		$	1,081



(a)	Specified items in cost of products sold are accelerated depreciation, asset impairment and other shutdown costs.
(b)	Includes $16 million of additional year of Branded Prescription Drug Fee in the third quarter.
(c)	Specified tax charge relates to transfer pricing matters.

2013



Dollars in Millions	First Quarter			Second Quarter			Third Quarter			Fourth Quarter			Year
Accelerated depreciation, asset impairment and other shutdown costs	$	—		$	—		$	—		$	36		$	36
Amortization of acquired Amylin intangible assets	138			137			137			137			549
Amortization of Amylin alliance proceeds	(67		)	(67		)	(68		)	(71		)	(273		)
Amortization of Amylin inventory adjustment	14			—			—			—			14
Cost of products sold	85			70			69			102			326

Marketing, selling and administrative^(a)	1			1			4			10			16

Research and development^(b)	—			—			—			16			16

Provision for restructuring	33			173			6			14			226
Pension settlements	—			99			37			25			161
Acquisition and alliance related items	—			(10		)	—			—			(10		)
Litigation recoveries	—			(23		)	—			—			(23		)
Upfront, milestone and other licensing receipts	(14		)	—			—			—			(14		)
Other (income)/expense	19			239			43			39			340

Increase to pretax income	105			310			116			167			698
Income tax on items above	(35		)	(116		)	(40		)	(51		)	(242		)
Increase to net earnings	$	70		$	194		$	76		$	116		$	456



(a)	Specified items in marketing, selling and administrative are process standardization implementation costs.
(b)	Specified items in research and development are upfront, milestone and other licensing payments.