ALLIANCES(Tables)

Selected financial information pertaining to our alliances was as follows, including net product sales when BMS is the principal in the third-party customer sale for products subject to the alliance. Expenses summarized below do not include all amounts attributed to the activities for the products in the alliance, but only the payments between the alliance partners or the related amortization if the payments were deferred or capitalized.



	Year Ended December 31,
Dollars in Millions	2014			2013			2012
Revenues from alliances:
Net product sales	$	3,531		$	4,417		$	6,124
Alliance and other revenues	3,828			3,804			3,748
Total Revenues	$	7,359		$	8,221		$	9,872

Payments to/(from) alliance partners:
Cost of products sold	$	1,394		$	1,356		$	1,706
Marketing, selling and administrative	44			(125		)	(80		)
Advertising and product promotion	90			(58		)	(97		)
Research and development	(70		)	(140		)	4
Other (income)/expense	(1,076		)	(313		)	(489		)

Noncontrolling interest, pre-tax	38			36			844



Selected Alliance Balance Sheet Information:	December 31,
Dollars in Millions	2014		2013
Receivables – from alliance partners	$	888	$	1,122
Accounts payable – to alliance partners	1,479		1,396
Deferred income from alliances^(a)	1,493		5,089


(a)	Includes deferred income classified as liabilities related to assets held-for-sale of $3,671 million at December 31, 2013.

An assessment of BMS's expected annual contractual share is completed each quarterly reporting period and adjusted based upon reported U.S. Abilify* net sales at year end. BMS's annual contractual share was 33% in 2014 and 34% in 2013. The alliance and other revenue recognized in any interim period or quarter does not exceed the amounts that are due under the contract.



Annual U.S. Net Sales	BMS Share as a % of U.S. Net Sales
$0 to $2.7 billion	50%
$2.7 billion to $3.2 billion	20%
$3.2 billion to $3.7 billion	7%
$3.7 billion to $4.0 billion	2%
$4.0 billion to $4.2 billion	1%
In excess of $4.2 billion	20%

A fee is paid to Otsuka based on the following percentages of annual net sales of Sprycel and Ixempra:



	% of Net Sales
	2010 - 2012	2013 - 2020
$0 to $400 million	30%	65%
$400 million to $600 million	5%	12%
$600 million to $800 million	3%	3%
$800 million to $1.0 billion	2%	2%
In excess of $1.0 billion	1%	1%

Summarized financial information related to this alliance was as follows:



	Year Ended December 31,
Dollars in Millions	2014			2013			2012
Revenues from Otsuka alliances:
Net product sales	$	1,493		$	1,543		$	1,386
Alliance and other revenues^(a)	1,778			1,840			2,340
Total Revenues	$	3,271		$	3,383		$	3,726

Payments to/(from) Otsuka:
Cost of products sold:
Oncology fee	$	297		$	295		$	138
Royalties	90			86			78
Amortization of intangible assets	—			—			5
Cost of product supply	67			135			153

Cost reimbursements to/(from) Otsuka recognized in:
Cost of products sold	3			3			2
Marketing, selling and administrative	61			34			7
Advertising and product promotion	32			(42		)	(49		)
Research and development	3			(5		)	(7		)

Other (income)/expense	(9		)	—			—



Selected Alliance Balance Sheet information:	December 31,
Dollars in Millions	2014		2013
Other assets – extension payment	$	21	$	87


(a)	Includes the amortization of the extension payment as a reduction to alliance and other revenue of $66 million in 2014, 2013 and 2012.

Summarized financial information related to the AstraZeneca alliances was as follows:



	Year Ended December 31,
Dollars in Millions	2014			2013			2012
Revenues from AstraZeneca alliances:
Net product sales	$	160		$	1,658		$	962
Alliance and other revenues	135			16			10
Total Revenues	$	295		$	1,674		$	972

Payments to/(from) AstraZeneca:
Cost of products sold:
Profit sharing	$	79		$	673		$	425
Amortization of deferred income	—			(307		)	(126		)

Cost reimbursements to/(from) AstraZeneca recognized in:
Cost of products sold	(9		)	(25		)	(4		)
Marketing, selling and administrative	(6		)	(127		)	(66		)
Advertising and product promotion	(2		)	(45		)	(43		)
Research and development	(16		)	(86		)	(25		)

Other (income)/expense:
Amortization of deferred income	(80		)	(31		)	(38		)
Provision for restructuring	(2		)	(25		)	(21		)
Royalties	(192		)	—			—
Transitional services	(90		)	—			—
Gain on sale of business	(536		)	—			—

Selected Alliance Cash Flow information:
Deferred income	315			215			3,547
Business divestitures and other proceeds	3,495			—			—



Selected Alliance Balance Sheet information:	December 31,
Dollars in Millions	2014		2013
Deferred income attributed to:
Non-refundable upfront, milestone and other licensing receipts^(a)	$	—	$	3,671
Assets not yet transferred to AstraZeneca	176		—
Services not yet performed for AstraZeneca	226		—


(a)	Included in liabilities related to assets held-for-sale at December 31, 2013.

Royalty rates on net sales are as follows:



	2014		2015		2016		2017		2018 - 2025
Onglyza* and Farxiga* Worldwide Net Sales up to $500 million	44	%	35	%	27	%	12	%	14-25%
Onglyza* and Farxiga* Worldwide Net Sales over $500 million	3	%	7	%	9	%	12	%	14-25%
Amylin products U.S. Net Sales	—		2	%	2	%	5	%	5-12%

Summarized financial information related to this alliance was as follows:



	Year Ended December 31,
Dollars in Millions	2014		2013		2012
Revenues from Gilead alliances:
Alliance and other revenues	$	1,255	$	1,366	$	1,267

Equity in net loss of affiliates	$	39	$	17	$	18



Selected Alliance Balance Sheet information:	December 31,
Dollars in Millions	2014		2013
Deferred income	$	316	$	468

Summarized financial information related to this alliance was as follows:



	Year Ended December 31,
Dollars in Millions	2014		2013			2012
Revenues from Lilly alliance:
Net product sales	$	691	$	696		$	702
Alliance and other revenues	32		—			—
Total revenues	$	723	$	696		$	702

Payments to/(from) Lilly:
Cost of products sold:
Distribution fees and royalties	$	287	$	289		$	291
Amortization of intangible asset	37		37			38
Cost of product supply	69		65			81

Cost reimbursements to/(from) Lilly	—		(13		)	23
Other (income)/expense – Japan commercialization fee	—		(30		)	(37		)



Selected Alliance Balance Sheet information	December 31,
Dollars in Millions	2014		2013
Other intangible assets – Non-refundable upfront, milestone and other licensing payments	$	137	$	174

Summarized financial information related to this alliance was as follows:



	Year Ended December 31,
Dollars in Millions	2014			2013			2012
Revenues from Sanofi alliances:
Net product sales	$	102		$	153		$	2,930
Alliance and other revenues	317			336			120
Total Revenues	$	419		$	489		$	3,050

Payments to/(from) Sanofi:
Cost of product supply	$	2		$	4		$	81
Cost of products sold– Royalties	4			4			530
Equity in net income of affiliates	(146		)	(183		)	(201		)
Other (income)/expense	—			(18		)	(171		)
Noncontrolling interest – pre-tax	38			36			844

Selected Alliance Cash Flow information:
Distributions (to)/from Sanofi - Noncontrolling interest	(49		)	43			(742		)
Distributions from Sanofi - Investment in affiliates	153			149			229

Selected Alliance Balance Sheet information:				December 31,
Dollars in Millions				2014			2013
Investment in affiliates – territory covering Europe and Asia^(a)				$	32		$	43
Noncontrolling interest				38			49


(a)	Included in alliance receivables.

The following is summarized financial information for interests in the partnerships with Sanofi for the territory covering Europe and Asia, which are not consolidated but are accounted for using the equity method:



	Year Ended December 31,
Dollars in Millions	2014		2013		2012
Net sales	$	360	$	395	$	1,077
Gross profit	297		319		453
Net income	$	292	$	313	$	394

Summarized financial information related to this alliance was as follows:



	Year Ended December 31,
Dollars in Millions	2014			2013			2012
Revenues from Pfizer alliance:
Net product sales	$	771		$	144		$	2
Alliance and other revenues	3			2			—
Total Revenues	$	774		$	146		$	2

Payments to/(from) Pfizer:
Cost of products sold – Profit sharing	$	363		$	69		$	1
Cost reimbursements to/(from) Pfizer	26			4			(11		)
Other (income)/expense – Amortization of deferred income	(50		)	(41		)	(37		)

Selected Alliance Cash Flow information:
Deferred income	100			205			20

Selected Alliance Balance Sheet information:				December 31,
Dollars in Millions				2014			2013
Deferred income				$	611		$	581

Summarized financial information related to this alliance was as follows:



	Year Ended December 31,
Dollars in Millions	2014		2013
Revenues from Reckitt alliance:
Alliance and other revenues	$	170	$	116

Selected Alliance Cash Flow Information:
Deferred income	$	—	$	376
Other changes in operating assets and liabilities	20		109



Selected Alliance Balance Sheet information:	December 31,
Dollars in Millions	2014		2013
Deferred income	$	155	$	290

Summarized financial information related to this alliance was as follows:



	Year Ended December 31,
Dollars in Millions	2014		2013
Revenues from The Medicines Company alliance:
Alliance and other revenues	$	66	$	74

Selected Alliance Cash Flow Information:
Deferred income	$	—	$	80
Other changes in operating assets and liabilities	—		35



Selected Alliance Balance Sheet information:	December 31,
Dollars in Millions	2014		2013
Deferred income	$	3	$	44

Summarized financial information related to this alliance was as follows:



	Year Ended December 31,
Dollars in Millions	2014		2013		2012
Revenues from Valeant alliance:
Net product sales	$	—	$	4	$	5
Alliance and other revenues	44		49		5
Total Revenues	$	44	$	53	$	10

Selected Alliance Cash Flow Information:
Deferred income	$	—	$	—	$	61
Other changes in operating assets and liabilities	16		—		18



Selected Alliance Balance Sheet information:	December 31,
Dollars in Millions	2014		2013
Deferred income	$	—	$	26

Summarized financial information related to this alliance was as follows:



	Year Ended December 31,
Dollars in Millions	2014			2013			2012
Revenues from Ono alliances:
Net product sales	$	113		$	41		$	—
Alliance and other revenues	28			4			—
Total Revenues	$	141		$	45		$	—

Payments to/(from) Ono:
Cost of products sold:
Co-Promotion Fee	$	20		$	11		$	—

Cost reimbursements to/(from) Ono recognized in:
Research and development	(15		)	(12		)	(11		)