ALLIANCES

BMS enters into collaboration arrangements with third parties for the research, development, manufacturing and/or 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 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 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. BMS refers to these collaborations as alliances and its partners as alliance partners.

Selected financial information pertaining to BMS 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 March 31,
Dollars in Millions	2019			2018
Revenues from alliances:
Net product sales	$	2,378		$	1,920
Alliance revenues	129			152
Total Revenues	$	2,507		$	2,072

Payments to/(from) alliance partners:
Cost of products sold	$	1,019		$	799
Marketing, selling and administrative	(28		)	(22		)
Research and development	14			5
Other income (net)	(14		)	(14		)



Selected Alliance Balance Sheet information:
Dollars in Millions	March 31, 2019		December 31, 2018
Receivables - from alliance partners	$	334	$	395
Accounts payable - to alliance partners	1,004		904
Deferred income from alliances^(a)	487		491


(a)	Includes unamortized upfront and milestone payments.

The nature and purpose, significant rights and obligations of the parties and specific accounting policy elections for each of the Company's significant alliances are discussed in the Company's 2018 Form 10-K. There were no significant developments and updates related to alliances during 2019.