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&lt;p style="margin-top: 0px; margin-bottom: 0px; margin-left: 4%;"&gt;&lt;font style="font-family: Times New Roman;" class="_mt" size="2"&gt;&lt;b&gt;14. CONTINGENCIES &lt;/b&gt;&lt;/font&gt;&lt;/p&gt;

&lt;p style="margin-top: 6px; margin-bottom: 0px;"&gt;&lt;font style="font-family: Times New Roman;" class="_mt" size="2"&gt;In the ordinary course of business, the Company is subject to lawsuits, investigations, government inquiries and claims, including, but not limited to, product liability claims, advertising disputes and inquiries, consumer fraud suits, other commercial disputes, premises claims and employment and environmental, health, and safety matters. &lt;/font&gt;&lt;/p&gt;

&lt;p style="margin-top: 12px; margin-bottom: 0px;"&gt;&lt;font style="font-family: Times New Roman;" class="_mt" size="2"&gt;The Company is not aware of any environmental, health or safety-related litigation or significant environmental, health and safety-related financial obligations or liabilities arising from current or former operations or properties that are likely to have a material adverse impact on the Company's business, financial position or results of operations. Liabilities or obligations, which could require the Company to make significant expenditures, could arise in the future, however, as the result of, among other things, changes in, or new interpretations of, existing laws, regulations or enforcement policies, claims relating to on-or off-site contamination, or the imposition of unanticipated investigation or cleanup obligations. &lt;/font&gt;&lt;/p&gt;

&lt;p style="margin-top: 12px; margin-bottom: 0px;"&gt;&lt;font style="font-family: Times New Roman;" class="_mt" size="2"&gt;As previously reported, PBM Products, LLC (PBM), a manufacturer and distributor of store brand infant formulas and nutritionals, obtained a judgment in the amount of $&lt;font class="_mt"&gt;13.5&lt;/font&gt; million in a suit against the Company's subsidiary, Mead Johnson&amp;nbsp;&amp;amp; Company, LLC (MJC), in the U.S. District Court (Eastern District of Virginia), alleging, among other things, false and misleading advertising with respect to certain Enfamil LIPIL infant formula advertising. After post-trial briefing, the court confirmed the award and also ordered limited injunctive relief. The Company had filed an appeal with the U.S. Court of Appeals for the Fourth Circuit with respect to various aspects of the district court proceedings, including both the jury award and injunction. On April&amp;nbsp;20, 2011, the U.S. Court of Appeals denied the Company's appeal and affirmed the District Court's decision in all respects. The Company had fully reserved against the judgment amount and has been in full compliance with the District Court's injunction. Accordingly, the Company does not expect the appellate court's decision to have a material adverse effect on the Company's results of operations or financial condition. &lt;/font&gt;&lt;/p&gt;

&lt;p style="margin-top: 12px; margin-bottom: 0px;"&gt;&lt;font style="font-family: Times New Roman;" class="_mt" size="2"&gt;In addition,&amp;nbsp;&lt;font class="_mt"&gt;eight&lt;/font&gt; putative consumer class action suits have been filed against MJC, two of which also name the Company as a defendant. (The Company either has sought or will seek to be dismissed from these&amp;nbsp;&lt;font class="_mt"&gt;two&lt;/font&gt; suits.) MJC successfully sought consolidation of all of these suits by the Joint Panel on Multidistrict Litigation, which transferred the cases to the U.S. District Court (Southern District of Florida). On March&amp;nbsp;18, 2011, that Court granted preliminary approval of a nationwide class settlement that will resolve all claims and all of the pending suits. The Court has scheduled its hearing to decide whether to grant final approval of the settlement for September&amp;nbsp;26, 2011. The settlement allows consumers who purchased Enfamil LIPIL infant formula between October&amp;nbsp;13, 2005, and March&amp;nbsp;31, 2010, to seek infant formula or cash. The amount each consumer can receive depends on how long the consumer purchased the formula; consumers who received their formula through the Women, Infants and Children (WIC) program are not eligible to participate. If the total amount claimed falls below $&lt;font class="_mt"&gt;8.0&lt;/font&gt; million (valuing the product at retail value), MJC will donate the difference in the form of product to appropriate charities. If the amount of claims otherwise would exceed $&lt;font class="_mt"&gt;12.0&lt;/font&gt; million, benefits will be prorated. MJC also has agreed not to oppose attorneys' fees and expenses to plaintiffs' counsel (not to exceed $&lt;font class="_mt"&gt;3.6&lt;/font&gt; million) and to pay costs of notice and settlement administration. The Company does not expect the settlement to have a material adverse effect on its results of operations or financial condition. &lt;/font&gt;&lt;/p&gt;

&lt;p style="margin-top: 12px; margin-bottom: 0px;"&gt;&lt;font style="font-family: Times New Roman;" class="_mt" size="2"&gt;The Company records accruals for such contingencies when it is probable that a liability will be incurred and the loss can be reasonably estimated. Although MJN cannot predict with certainty the ultimate resolution of these or other lawsuits, investigations and claims asserted against the Company, MJN does not believe any currently pending legal proceeding to which MJN is a party will have a material adverse effect on the Company's business or financial condition, although an unfavorable outcome in excess of amounts recognized as of March&amp;nbsp;31, 2011, with respect to one or more of these proceedings could have a material adverse effect on the Company's results of operations or the periods in which a loss is recognized. &lt;/font&gt;&lt;/p&gt;&lt;/div&gt;&lt;/div&gt;&lt;font style="font-family: Times New Roman;" class="_mt" size="2"&gt;&lt;font style="font-family: Times New Roman;" class="_mt" size="2"&gt; &lt;/font&gt;&lt;/font&gt; &lt;/div&gt;</NonNumbericText><NonNumericTextHeader>14. CONTINGENCIES

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