ALLIANCES

BMS enters into collaboration arrangements with third parties for the development and commercialization of certain products. Although each of these arrangements is unique in nature, both parties are active participants in the operating activities of the collaboration and are exposed to significant risks and rewards depending on the commercial success of the activities. BMS may either in-license intellectual property owned by the other party or out-license its intellectual property to the other party. These arrangements also typically include research, development, manufacturing and/or commercial activities and can cover a single investigational compound or commercial product or multiple compounds and/or products in various life cycle stages. The rights and obligations of the parties can be global or limited to geographic regions. We refer to these collaborations as alliances and our partners as alliance partners. Products sold through alliance arrangements in certain markets include Empliciti, Erbitux*, Opdivo, Sprycel, Yervoy, Eliquis, Orencia, Sustiva (Atripla*), Abilify* and certain mature and other brands.

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.



	Three Months Ended September 30,						Nine Months Ended September 30,
Dollars in Millions	2016			2015			2016			2015
Revenues from alliances:
Net product sales	$	1,465		$	981		$	4,031		$	3,203
Alliance revenues	402			496			1,229			2,003
Total Revenues	$	1,867		$	1,477		$	5,260		$	5,206

Payments to/(from) alliance partners:
Cost of products sold	$	572		$	445		$	1,543		$	1,257
Marketing, selling and administrative	(3		)	4			(10		)	26
Research and development	(7		)	89			23			277
Other (income)/expense	(160		)	(173		)	(864		)	(622		)

Noncontrolling interest, pre-tax	3			17			13			45



Selected Alliance Balance Sheet information:
Dollars in Millions	September 30, 2016		December 31, 2015
Receivables - from alliance partners	$	1,085	$	958
Accounts payable - to alliance partners	550		542
Deferred income from alliances	1,414		1,459

Specific information pertaining to each of our significant alliances is discussed in our 2015 Form 10-K, including their nature and purpose, the significant rights and obligations of the parties and specific accounting policy elections.