Segment Reporting (Tables)

9 Months Ended

Sep. 30, 2011

Revenues and profits for these segments are as follows:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
($ in millions)	2011		2010		2011		2010

Segment revenues:
Pharmaceutical segment	$	10,354	$	9,523	$	30,534	$	28,826
All other segment revenues		1,559		1,453		4,833		4,548

	$	11,913	$	10,976	$	35,367	$	33,374


Segment profits:
Pharmaceutical segment	$	6,355	$	5,851	$	19,014	$	17,578
All other segment profits		709		598		2,080		1,945

	$	7,064	$	6,449	$	21,094	$	19,523

Sales of the Company's products

Sales of the Company’s products were as follows:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
($ in millions)	2011		2010		2011		2010

Pharmaceutical:
Cardiovascular
Zetia	$	614	$	571	$	1,788	$	1,668
Vytorin		469		485		1,407		1,452
Integrilin		53		63		172		203
Diabetes and Obesity
Januvia		846		600		2,364		1,710
Janumet		350		247		977		666
Diversified Brands
Cozaar/Hyzaar		404		423		1,236		1,690
Zocor		110		114		345		347
Propecia		112		109		330		322
Claritin Rx		55		53		240		210
Remeron		65		50		181		160
Vasotec/Vaseretic		57		69		173		191
Proscar		58		58		171		172
Infectious Disease
Isentress		343		278		972		777
PegIntron		163		168		482		539
Cancidas		150		135		476		437
Primaxin		124		135		397		452
Invanz		107		91		296		249
Avelox		59		59		227		224
Noxafil		61		52		171		150
Crixivan/Stocrin		56		49		151		148
Rebetol		38		55		138		166
Victrelis		31		—		53		—
Neurosciences and Ophthalmology
Maxalt		156		133		460		401
Cosopt/Trusopt		124		114		360		353
Oncology
Temodar		223		254		704		799
Emend		98		91		305		268
Intron A		47		50		143		155
Respiratory and Immunology
Singulair		1,336		1,215		4,018		3,638
Remicade		561		661		2,156		2,004
Nasonex		266		259		962		917
Clarinex		128		131		492		486
Arcoxia		108		94		321		284
Simponi		74		27		203		55
Asmanex		42		48		149		155
Proventil		38		43		117		155
Dulera		22		2		59		2
Vaccines ⁽¹⁾
Gardasil		445		316		935		768
ProQuad/M-M-R II/Varivax		391		434		927		1,093
RotaTeq		184		119		457		350
Pneumovax		133		110		276		220
Zostavax		108		23		254		136
Women’s Health and Endocrine
Fosamax		215		220		644		692
NuvaRing		159		134		455		414
Follistim AQ		129		119		404		389
Implanon		80		64		220		165
Cerazette		74		56		199		160
Other pharmaceutical ⁽²⁾		888		942		2,567		2,834

Total Pharmaceutical segment sales		10,354		9,523		30,534		28,826

Other segment sales ⁽³⁾		1,559		1,453		4,833		4,548

Total segment sales		11,913		10,976		35,367		33,374

Other ⁽⁴⁾		109		149		386		519

	$	12,022	$	11,125	$	35,753	$	33,893


⁽¹⁾		These amounts do not reflect sales of vaccines sold in most major European markets through the Company’s joint venture, Sanofi Pasteur MSD, the results of which are reflected in Equity income from affiliates. These amounts do, however, reflect supply sales to Sanofi Pasteur MSD.

⁽²⁾		Other pharmaceutical primarily includes sales of other human pharmaceutical products, including products within the franchises not listed separately.

⁽³⁾		Reflects other non-reportable segments, including Animal Health and Consumer Care, and revenue from the Company’s relationship with AZLP primarily relating to sales of Nexium, as well as Prilosec. Revenue from AZLP was $299 million and $345 million for the third quarter of 2011 and 2010, respectively, and $928 million and $950 million for the first nine months of 2011 and 2010, respectively.

⁽⁴⁾		Other revenues are primarily comprised of miscellaneous corporate revenues, third-party manufacturing sales, sales related to divested products or businesses and other supply sales not included in segment results.

Reconciliation of segment profits to Income Before Taxes

A reconciliation of segment profits to Income before taxes is as follows:


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
($ in millions)	2011			2010			2011			2010

Segment profits	$	7,064		$	6,449		$	21,094		$	19,523
Other profits		31			53			67			168
Adjustments		242			73			718			323
Unallocated:
Interest income		45			23			137			57
Interest expense		(189	)		(173	)		(557	)		(539	)
Equity income from affiliates		47			98			62			98
Depreciation and amortization		(619	)		(699	)		(1,814	)		(1,985	)
Research and development		(1,954	)		(2,322	)		(6,048	)		(6,552	)
Amortization of purchase accounting adjustments		(1,306	)		(1,540	)		(4,249	)		(5,576	)
Restructuring costs		(119	)		(50	)		(773	)		(864	)
Arbitration settlement charge		—			—			(500	)		—
Legal reserve		—			(950	)		—			(950	)
Gain on AstraZeneca option exercise		—			—			—			443
Other expenses, net		(890	)		(464	)		(2,384	)		(1,792	)

	$	2,352		$	498		$	5,753		$	2,354

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

+ References+ Details