SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)



Dollars in Millions, except per share data	First Quarter			Second Quarter			Third Quarter		Fourth Quarter			Year
2015
Total Revenues	$	4,041		$	4,163		$	4,069	$	4,287		$	16,560
Gross Margin	3,194			3,150			2,972		3,335			12,651
Net Earnings/(Loss)	1,199			(110		)	730		(188		)	1,631
Net Earnings/(Loss) Attributable to:
Noncontrolling Interest	13			20			24		9			66
BMS	1,186			(130		)	706		(197		)	1,565

Earnings/(Loss) per Share - Basic^(a)	$	0.71		$	(0.08	)	$	0.42	$	(0.12	)	$	0.94
Earnings/(Loss) per Share - Diluted^(a)	0.71			(0.08		)	0.42		(0.12		)	0.93

Cash dividends declared per common share	$	0.37		$	0.37		$	0.37	$	0.38		$	1.49

Cash and cash equivalents	$	6,294		$	4,199		$	3,975	$	2,385		$	2,385
Marketable securities^(b)	5,592			5,909			6,065		6,545			6,545
Total Assets	33,579			31,954			31,779		31,748			31,748
Long-term debt	7,127			6,615			6,632		6,550			6,550
Equity	15,689			15,291			15,273		14,424			14,424

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



(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.

The following specified items affected the comparability of results in 2015 and 2014:

2015



Dollars in Millions	First Quarter			Second Quarter			Third Quarter			Fourth Quarter			Year
Cost of products sold^(a)	$	34		$	25		$	15		$	10		$	84

Marketing, selling and administrative^(b)	1			3			2			4			10

License and asset acquisition charges	162			869			94			554			1,679
IPRD impairments	—			—			—			160			160
Other	—			2			15			27			44
Research and development	162			871			109			741			1,883

Provision for restructuring	12			28			10			65			115
(Gain)/Loss on sale of businesses, product lines and assets	(152		)	(8		)	(198		)	171			(187		)
Pension charges	27			36			48			49			160
Acquisition and alliance related items	(36		)	—			(87		)	—			(123		)
Litigation and other settlements	14			1			—			143			158
Out-licensed intangible asset impairment	13			—			—			—			13
Loss on debt redemption	—			180			—			—			180
Other (income)/expense	(122		)	237			(227		)	428			316

Increase/(decrease) to pretax income	75			1,136			(101		)	1,183			2,293
Income tax on items above	(68		)	(116		)	43			(339		)	(480		)
Increase/(decrease) to net earnings	$	7		$	1,020		$	(58	)	$	844		$	1,813



(a)	Specified items in cost of products sold are accelerated depreciation, asset impairment and other shutdown costs.
(b)	Specified items in marketing, selling and administrative are process standardization implementation costs.

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

License and asset acquisition charges	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)/Loss on sale of businesses, product lines and assets	(259		)	12			(315		)	3			(559		)
Pension charges	64			45			28			740			877
Acquisition and alliance related items^(b)	16			17			39			—			72
Litigation and other settlements	25			(23		)	10			15			27
Out-licensed intangible asset impairment	—			—			—			11			11
Loss on debt redemption	45			—			—			—			45
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.