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	2016			2015			2014
Revenues from alliances:
Net product sales	$	5,568		$	4,308		$	3,531
Alliance revenues	1,629			2,408			3,828
Total Revenues	$	7,197		$	6,716		$	7,359

Payments to/(from) alliance partners:
Cost of products sold	$	2,129		$	1,655		$	1,394
Marketing, selling and administrative	(28		)	15			134
Research and development	56			693			8
Other (income)/expense	(1,009		)	(733		)	(1,076		)

Noncontrolling interest, pretax	16			51			38



Selected Alliance Balance Sheet Information:	December 31,
Dollars in Millions	2016		2015
Receivables – from alliance partners	$	903	$	958
Accounts payable – to alliance partners	555		542
Deferred income from alliances^(a)	1,194		1,459

Summarized financial information related to this alliance was as follows:



	Year Ended December 31,
Dollars in Millions	2016			2015			2014
Revenues from Pfizer alliance:
Net product sales	$	3,306		$	1,849		$	771
Alliance revenues	37			11			3
Total Revenues	$	3,343		$	1,860		$	774

Payments to/(from) Pfizer:
Cost of products sold – Profit sharing	$	1,595		$	895		$	363
Other (income)/expense – Amortization of deferred income	(55		)	(55		)	(50		)

Selected Alliance Cash Flow Information:
Deferred income	—			20			100



Selected Alliance Balance Sheet Information:	December 31,
Dollars in Millions	2016		2015
Deferred income	$	521	$	576

Summarized financial information related to this alliance was as follows:



	Year Ended December 31,
Dollars in Millions	2016		2015		2014
Revenues from Gilead alliances:
Alliance revenues	$	934	$	1,096	$	1,255

Equity in net loss of affiliates	$	12	$	17	$	39



Selected Alliance Balance Sheet Information:	December 31,
Dollars in Millions	2016		2015
Deferred income	$	634	$	699

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	2016		2015		2014
Revenues from Otsuka alliances:
Net product sales	$	1,670	$	1,501	$	1,493
Alliance revenues^(a)	2		604		1,778
Total Revenues	$	1,672	$	2,105	$	3,271

Payments to/(from) Otsuka:
Cost of products sold:
Oncology fee	$	304	$	299	$	297
Royalties	10		30		90
Cost of product supply	30		35		67


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

Summarized financial information related to this alliance was as follows:



	Year Ended December 31,
Dollars in Millions	2016			2015			2014
Revenues from Lilly alliance:
Net product sales	$	—		$	492		$	691
Alliance revenues	—			9			32
Total revenues	$	—		$	501		$	723

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

Other (income)/expense:
Royalties	(246		)	(70		)	—
Divestiture loss	—			171			—

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



	Year Ended December 31,
Dollars in Millions	2016			2015			2014
Revenues from AstraZeneca alliances:
Net product sales	$	—		$	14		$	160
Alliance revenues	129			182			135
Total Revenues	$	129		$	196		$	295

Payments to/(from) AstraZeneca:
Cost of products sold – Profit sharing	$	—		$	1		$	79

Cost reimbursements from AstraZeneca	—			—			(33		)

Other (income)/expense:
Amortization of deferred income	(113		)	(105		)	(80		)
Royalties	(227		)	(215		)	(192		)
Transitional services	(7		)	(12		)	(90		)
Divestiture gain	—			(82		)	(536		)

Selected Alliance Cash Flow Information:
Deferred income	19			34			315
Divestiture and other proceeds	216			374			3,495



Selected Alliance Balance Sheet Information:	December 31,
Dollars in Millions	2016		2015
Deferred income – Services not yet performed for AstraZeneca	$	38	$	144

Royalty rates on net sales are as follows:



	2014		2015		2016		2017		2018		2019		2020 - 2025
Onglyza* and Farxiga* Worldwide Net Sales up to $500 million	44	%	35	%	27	%	12	%	20	%	22	%	14-25%
Onglyza* and Farxiga* Worldwide Net Sales over $500 million	3	%	7	%	9	%	12	%	20	%	22	%	14-25%
Amylin products U.S. Net Sales	—		2	%	2	%	5	%	10	%	12	%	5-12%

Summarized financial information related to this alliance was as follows:



	Year Ended December 31,
Dollars in Millions	2016			2015			2014
Revenues from Sanofi alliances:
Net product sales	$	38		$	110		$	102
Alliance revenues	200			296			317
Total Revenues	$	238		$	406		$	419

Payments to/(from) Sanofi:
Equity in net income of affiliates	(95		)	(104		)	(146		)
Noncontrolling interest – pretax	16			51			38

Selected Alliance Cash Flow Information:
Distributions (to)/from Sanofi – Noncontrolling interest	(15		)	(45		)	(49		)
Distributions from Sanofi – Investment in affiliates	99			105			153



Selected Alliance Balance Sheet Information:	December 31,
Dollars in Millions	2016		2015
Investment in affiliates – territory covering Europe and Asia^(a)	$	21	$	25
Noncontrolling interest	45		44


(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	2016		2015		2014
Net sales	$	235	$	257	$	360
Gross profit	195		213		297
Net income	192		209		292

Summarized financial information related to this alliance was as follows:



	Year Ended December 31,
Dollars in Millions	2016		2015		2014
Revenues from Ono alliances:
Net product sales	$	147	$	113	$	113
Alliance revenues	280		61		28
Total Revenues	$	427	$	174	$	141

Summarized financial information related to this alliance was as follows:



	Year Ended December 31,
Dollars in Millions	2016		2015		2014
Revenues from AbbVie alliance:
Net product sales	$	132	$	3	$	—

Summarized financial information related to this alliance was as follows:



	Year Ended December 31,
Dollars in Millions	2016		2015			2014
Revenues from Reckitt alliance:
Alliance revenues	$	48	$	140		$	170

Other (income)/expense – Divestiture gain	277		—			—

Selected Alliance Cash Flow Information:
Other changes in operating assets and liabilities	$	—	$	(129	)	$	20
Divestiture and other proceeds	317		—			—



Selected Alliance Balance Sheet Information:	December 31,
Dollars in Millions	2016		2015
Deferred income	$	—	$	36

Summarized financial information related to this alliance was as follows:



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

Other (income)/expense – Divestiture gain	(59		)	—

Selected Alliance Cash Flow Information:
Divestiture and other proceeds	$	132		$	—

Summarized financial information related to this alliance was as follows:



	Year Ended December 31,
Dollars in Millions	2015			2014
Revenues from Valeant alliance:
Alliance revenues	$	(1	)	$	44

Other (income)/expense – Divestiture gain	(88		)	—

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