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BUSINESS SEGMENT INFORMATION
 12 Months Ended
Dec. 31, 2011
Segment Reporting [Abstract]  
Business Segment Information [Text Block]

Note 2. BUSINESS SEGMENT INFORMATION

 

BMS operates in a single segment engaged in the discovery, development, licensing, manufacturing, marketing, distribution and sale of innovative medicines that help patients prevail over serious diseases. A global research and development organization and a global supply chain organization are utilized and responsible for the development and delivery of products to the market. Products are distributed and sold through regional organizations that serve the United States; Europe; Latin America, Middle East and Africa; Japan, Asia Pacific and Canada; and Emerging Markets defined as Brazil, Russia, India, China and Turkey. The business is also supported by global corporate staff functions. The segment information presented below is consistent with the financial information regularly reviewed by the chief operating decision maker, the chief executive officer, for purposes of evaluating performance, allocating resources, setting incentive compensation targets, and planning and forecasting future periods.

 

Products are sold principally to wholesalers, and to a lesser extent, directly to distributors, retailers, hospitals, clinics, government agencies and pharmacies. Gross sales to the three largest pharmaceutical wholesalers in the U.S. as a percentage of total gross sales were as follows:

 2011 2010 2009
McKesson Corporation26% 24% 25%
Cardinal Health, Inc.21% 21% 20%
AmerisourceBergen Corporation16% 16% 15%

Selected geographic area information was as follows:

                        Net Sales                        Property, Plant and Equipment
Dollars in Millions2011 2010 2009 2011 2010
United States$13,845 $12,613 $11,867 $3,032 $3,119
Europe 3,667  3,448  3,625  884  922
Japan, Asia Pacific and Canada 1,862  1,651  1,522  18  20
Latin America, Middle East and Africa 894  856  843  534  557
Emerging Markets 887  804  753  53  46
Other 89  112  198   -   -
Total$ 21,244 $ 19,484 $ 18,808 $ 4,521 $ 4,664

Net sales of key products were as follows:

  Year Ended December 31,
Dollars in Millions2011 2010 2009
PLAVIX* (clopidogrel bisulfate)$7,087 $6,666 $6,146
AVAPRO*/AVALIDE* (irbesartan/irbesartan-hydrochlorothiazide) 952  1,176  1,283
ABILIFY* (aripiprazole) 2,758  2,565  2,592
REYATAZ (atazanavir sulfate) 1,569  1,479  1,401
SUSTIVA (efavirenz) Franchise 1,485  1,368  1,277
BARACLUDE (entecavir) 1,196  931  734
ERBITUX* (cetuximab) 691  662  683
SPRYCEL (dasatinib) 803  576  421
YERVOY (ipilimumab) 360   -   -
ORENCIA (abatacept) 917  733  602
NULOJIX (belatacept) 3   -   -
ONGLYZA/KOMBIGLYZE (saxagliptin/saxagliptin and metformin) 473  158  24
Mature Products and All Other 2,950  3,170  3,645
 Net Sales$ 21,244 $ 19,484 $ 18,808

Capital expenditures and depreciation of property, plant and equipment within the segment were as follows:

 Year Ended December 31,
Dollars in Millions2011 2010 2009
Capital expenditures$ 367 $ 424 $ 634
Depreciation  373   380   346

Segment income excludes the impact of significant items not indicative of current operating performance or ongoing results, and earnings attributed to Sanofi and other noncontrolling interest. The reconciliation to earnings from continuing operations before income taxes was as follows:

 Year Ended December 31,
Dollars in Millions2011 2010 2009
Segment income$5,083 $4,642 $4,492
         
Reconciling items:        
Provision for restructuring (116)  (113)  (136)
Impairment and loss on sale of manufacturing operations  -  (236)   -
Accelerated depreciation, asset impairment and other shutdown costs (75)  (113)  (115)
Process standardization implementation costs (29)  (35)  (110)
Gain on sale of product lines, businesses and assets 12   -  360
Litigation recovery/(charges) 22  19  (132)
Upfront, milestone and other licensing payments (187)  (132)  (347)
BMS Foundation funding initiative  -   -  (100)
Other (72)  (55)  (53)
Noncontrolling interest 2,343  2,094  1,743
Earnings from continuing operations before income taxes$ 6,981 $ 6,071 $ 5,602