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	2015			2014			2013
Revenues from alliances:
Net product sales	$	4,308		$	3,531		$	4,417
Alliance revenues	2,408			3,828			3,804
Total Revenues	$	6,716		$	7,359		$	8,221

Payments to/(from) alliance partners:
Cost of products sold	$	1,655		$	1,394		$	1,356
Marketing, selling and administrative	15			134			(183		)
Research and development	693			8			(140		)
Other (income)/expense	(733		)	(1,076		)	(313		)

Noncontrolling interest, pretax	51			38			36



Selected Alliance Balance Sheet Information:	December 31,
Dollars in Millions	2015		2014
Receivables – from alliance partners	$	958	$	888
Accounts payable – to alliance partners	542		1,479
Deferred income from alliances	1,459		1,493

Summarized financial information related to this alliance was as follows:



	Year Ended December 31,
Dollars in Millions	2015			2014			2013
Revenues from Pfizer alliance:
Net product sales	$	1,849		$	771		$	144
Alliance revenues	11			3			2
Total Revenues	$	1,860		$	774		$	146

Payments to/(from) Pfizer:
Cost of products sold – Profit sharing	$	895		$	363		$	69
Cost reimbursements to Pfizer	15			26			4
Other (income)/expense – Amortization of deferred income	(55		)	(50		)	(41		)

Selected Alliance Cash Flow information:
Deferred income	20			100			205

Selected Alliance Balance Sheet information:				December 31,
Dollars in Millions				2015			2014
Deferred income				$	576		$	611

Summarized financial information related to this alliance was as follows:



	Year Ended December 31,
Dollars in Millions	2015		2014		2013
Revenues from Gilead alliances:
Alliance revenues	$	1,096	$	1,255	$	1,366

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



Selected Alliance Balance Sheet information:	December 31,
Dollars in Millions	2015		2014
Deferred income	$	699	$	316

An assessment of BMS's expected annual contractual share was completed each quarterly reporting period and adjusted based upon reported U.S. Abilify* net sales at year end. BMS's annual contractual share was 50% in 2015, 33% in 2014 and 34% in 2013. The alliance and other revenue recognized in any interim period or quarter did not exceed the amounts that were 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 combined annual net sales of Sprycel and Ixempra* in the Oncology Territory (including post divestiture Ixempra* sales):



	% 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	2015		2014		2013
Revenues from Otsuka alliances:
Net product sales	$	1,501	$	1,493	$	1,543
Alliance revenues^(a)	604		1,778		1,840
Total Revenues	$	2,105	$	3,271	$	3,383

Payments to/(from) Otsuka:
Cost of products sold:
Oncology fee	$	299	$	297	$	295
Royalties	30		90		86
Cost of product supply	35		67		135


(a)	Includes the amortization of the extension payment as a reduction to alliance revenue of $21 million in 2015 and $66 million in 2014 and 2013.

Summarized financial information related to this alliance was as follows:



	Year Ended December 31,
Dollars in Millions	2015			2014		2013
Revenues from Lilly alliance:
Net product sales	$	492		$	691	$	696
Alliance revenues	9			32		—
Total revenues	$	501		$	723	$	696

Payments to/(from) Lilly:
Cost of products sold:
Distribution fees and royalties	$	204		$	287	$	289
Amortization of intangible asset	11			37		37
Cost of product supply	46			69		65

Other (income)/expense:
Royalties	(70		)	—		(30		)
Loss on sale of business	171			—		—



Selected Alliance Balance Sheet information	December 31,
Dollars in Millions	2015		2014
Other intangible assets – Non-refundable upfront, milestone and other licensing payments	$	—	$	137

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



	Year Ended December 31,
Dollars in Millions	2015			2014			2013
Revenues from AstraZeneca alliances:
Net product sales	$	14		$	160		$	1,658
Alliance revenues	182			135			16
Total Revenues	$	196		$	295		$	1,674

Payments to/(from) AstraZeneca:
Cost of products sold:
Profit sharing	$	1		$	79		$	673
Amortization of deferred income	—			—			(307		)

Cost reimbursements to/(from) AstraZeneca recognized in:
Cost of products sold	—			(9		)	(25		)
Marketing, selling and administrative	—			(8		)	(172		)
Research and development	—			(16		)	(86		)

Other (income)/expense:
Amortization of deferred income	(105		)	(80		)	(31		)
Provision for restructuring	—			(2		)	(25		)
Royalties	(215		)	(192		)	—
Transitional services	(12		)	(90		)	—
Gain on sale of business	(82		)	(536		)	—

Selected Alliance Cash Flow information:
Deferred income	34			315			215
Divestiture and other proceeds	374			3,495			—



Selected Alliance Balance Sheet information:	December 31,
Dollars in Millions	2015		2014
Deferred income attributed to:
Assets not yet transferred to AstraZeneca	$	—	$	176
Services not yet performed for AstraZeneca	144		226

Royalty rates on net sales are as follows:



	2014		2015		2016		2017		2018		2019 - 2025
Onglyza* and Farxiga* Worldwide Net Sales up to $500 million	44	%	35	%	27	%	12	%	20	%	14-25%
Onglyza* and Farxiga* Worldwide Net Sales over $500 million	3	%	7	%	9	%	12	%	20	%	14-25%
Amylin products U.S. Net Sales	—		2	%	2	%	5	%	10	%	5-12%

Summarized financial information related to this alliance was as follows:



	Year Ended December 31,
Dollars in Millions	2015			2014			2013
Revenues from Sanofi alliances:
Net product sales	$	110		$	102		$	153
Alliance revenues	296			317			336
Total Revenues	$	406		$	419		$	489

Payments to/(from) Sanofi:
Equity in net income of affiliates	(104		)	(146		)	(183		)
Noncontrolling interest – pretax	51			38			36

Selected Alliance Cash Flow information:
Distributions (to)/from Sanofi - Noncontrolling interest	(45		)	(49		)	43
Distributions from Sanofi – Investment in affiliates	105			153			149

Selected Alliance Balance Sheet information:				December 31,
Dollars in Millions				2015			2014
Investment in affiliates – territory covering Europe and Asia^(a)				$	25		$	32
Noncontrolling interest				44			38


(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	2015		2014		2013
Net sales	$	257	$	360	$	395
Gross profit	213		297		319
Net income	209		292		313

Summarized financial information related to this alliance was as follows:



	Year Ended December 31,
Dollars in Millions	2015			2014			2013
Revenues from Ono alliances:
Net product sales	$	113		$	113		$	41
Alliance revenues	61			28			4
Total Revenues	$	174		$	141		$	45

Payments to/(from) Ono:
Cost of products sold:
Co-Promotion Fee	$	20		$	20		$	11
Profit sharing	2			—			—

Cost reimbursements from Ono	(9		)	(15		)	(12		)

Summarized financial information related to this alliance was as follows:



	Year Ended December 31,
Dollars in Millions	2015			2014		2013
Revenues from Reckitt alliance:
Alliance revenues	$	140		$	170	$	116

Selected Alliance Cash Flow Information:
Deferred income	$	—		$	—	$	376
Other changes in operating assets and liabilities	(129		)	20		109



Selected Alliance Balance Sheet information:	December 31,
Dollars in Millions	2015		2014
Deferred income	$	36	$	155

Summarized financial information related to this alliance was as follows:



	Year Ended December 31,
Dollars in Millions	2015			2014		2013
Revenues from The Medicines Company alliance:
Alliance revenues	$	8		$	66	$	74

Other (income)/expense – Gain on sale of business	(59		)	—		—

Selected Alliance Cash Flow Information:
Deferred income	$	—		$	—	$	80
Other changes in operating assets and liabilities	—			—		35
Divestiture and other proceeds	132			—		—



Selected Alliance Balance Sheet information:	December 31,
Dollars in Millions	2015		2014
Deferred income	$	—	$	3

Summarized financial information related to this alliance was as follows:



	Year Ended December 31,
Dollars in Millions	2015			2014		2013
Revenues from Valeant alliance:
Net product sales	$	—		$	—	$	4
Alliance revenues	(1		)	44		49
Total Revenues	$	(1	)	$	44	$	53

Other (income)/expense – Gain on sale of business	(88		)	—		—

Selected Alliance Cash Flow Information:
Other changes in operating assets and liabilities	$	—		$	16	$	—
Divestiture and other proceeds	61			—		—