Business Combinations and Divestitures (Tables)

9 Months Ended

Oct. 01, 2017

Schedule of Preliminary Amounts Recognized for Assets Acquired and Liabilities Assumed

The following table presents the preliminary amounts recognized for assets acquired and liabilities assumed as of the acquisition date as well as the adjustments made up to October 1, 2017:



(Dollars in Millions)	June 16, 2017		October 1, 2017
Cash & Cash equivalents	$	469	469
Inventory⁽¹⁾	759		759
Accounts Receivable	485		485
Other current assets	93		93
Property, plant and equipment	104		104
Goodwill	5,986		5,757
Intangible assets	25,010		25,010
Deferred Taxes	3		3
Other non-current assets	19		19
Total Assets Acquired	32,928		32,699

Current liabilities	531		531
Deferred Taxes	1,960		1,731
Other non-current liabilities	383		383
Total Liabilities Assumed	2,874		2,645

Net Assets Acquired	$	30,054	30,054

⁽¹⁾Includes adjustment of $642 million to write-up the acquired inventory to its estimated fair value.

Purchase Price Allocation of Identifiable Intangible Assets

The purchase price allocation to the identifiable intangible assets is as follows:



(Dollars in Millions)
Intangible assets with definite lives:
Patents and trademarks	$	24,230
Total amortizable intangibles	24,230

In-process research and development	780
Total intangible assets	$	25,010

Schedule of Pro Forma Results

The following table provides pro forma results of operations for the fiscal third quarters and the fiscal nine months ended October 1, 2017 and October 2, 2016, as if Actelion had been acquired as of January 4, 2016. The pro forma results include the effect of certain purchase accounting adjustments such as the estimated changes in depreciation and amortization expense on the acquired tangible and intangible assets. However, pro forma results do not include any anticipated cost savings or other effects of the planned integration of Actelion. Accordingly, such amounts are not necessarily indicative of the results if the acquisition had occurred on the dates indicated or which may occur in the future.



	Unaudited Pro forma Consolidated Results
	Fiscal Nine Months Ended		Fiscal Third Quarters Ended
(Dollars in Millions Except Per Share Data)	October 1, 2017	October 2, 2016	October 1, 2017	October 2, 2016

Net Sales	57,486	55,606	19,650	18,441
Net Earnings	11,909	10,760	4,019	3,885
Diluted Net Earnings per Common Share	4.34	3.85	1.47	1.39