Segments of Business and Geographic Areas

9 Months Ended

Sep. 29, 2013

Segment Reporting [Abstract]

SEGMENTS OF BUSINESS AND GEOGRAPHIC AREAS

SEGMENTS OF BUSINESS AND GEOGRAPHIC AREAS

SALES BY SEGMENT OF BUSINESS

	Fiscal Third Quarters Ended
(Dollars in Millions)	September 29, 2013		September 30, 2012		Percent Change
Consumer
United States	$	1,225	$	1,214	0.9	%
International	2,386		2,367		0.8
Total	3,611		3,581		0.8
Pharmaceutical
United States	3,549		3,288		7.9
International	3,487		3,114		12.0
Total	7,036		6,402		9.9
Medical Devices & Diagnostics
United States	3,151		3,289		(4.2	)
International	3,777		3,780		(0.1	)
Total	6,928		7,069		(2.0	)
Worldwide
United States	7,925		7,791		1.7
International	9,650		9,261		4.2
Total	$	17,575	$	17,052	3.1	%

	Fiscal Nine Months Ended
(Dollars in Millions)	September 29, 2013		September 30, 2012		Percent Change
Consumer
United States	$	3,899	$	3,843	1.5	%
International	7,045		6,952		1.3
Total	10,944		10,795		1.4
Pharmaceutical
United States	10,397		9,408		10.5
International	10,432		9,418		10.8
Total	20,829		18,826		10.6
Medical Devices & Diagnostics
United States	9,600		9,119		5.3
International	11,584		10,926		6.0
Total	21,184		20,045		5.7
Worldwide
United States	23,896		22,370		6.8
International	29,061		27,296		6.5
Total	$	52,957	$	49,666	6.6	%

SEGMENT PRE-TAX PROFIT

	Fiscal Third Quarters Ended
(Dollars in Millions)	September 29, 2013		September 30, 2012		Percent Change
Consumer	$	467	$	510	(8.4	)%
Pharmaceutical (2)	2,449		1,388		76.4
Medical Devices & Diagnostics(3)	956		1,927		(50.4	)
Segments operating profit	3,872		3,825		1.2
Less: Expense not allocated to segments(4)	205		230
Worldwide income before taxes	$	3,667	$	3,595	2.0	%

	Fiscal Nine Months Ended
(Dollars in Millions)	September 29, 2013		September 30, 2012		Percent Change
Consumer (1)	$	1,525	$	1,239	23.1	%
Pharmaceutical (2)	7,858		4,494		74.9
Medical Devices & Diagnostics (3)	3,991		5,880		(32.1	)
Segments operating profit	13,374		11,613		15.2
Less: Expense not allocated to segments (4)	653		938
Worldwide income before taxes	$	12,721	$	10,675	19.2	%

(1) Includes a gain on the sale of intangible and other assets of $55 million recorded in the fiscal nine months of 2013. Includes intangible asset write-downs of $294 million recorded in the fiscal nine months of 2012.

(2) Includes in-process research and development charges of $178 million and litigation expense of $28 million recorded in the fiscal third quarter of 2013. Includes litigation expense of $206 million, in-process research and development charges of $178 million and a net gain of $400 million on equity investment transactions, primarily the sale of Elan American Depositary Shares recorded in the fiscal nine months of 2013. Includes in-process research and development charges of $679 million recorded in the fiscal third quarter of 2012. Includes in-process research and development charges of $1,108 million, litigation expense of $658 million and intangible asset write-downs of $499 million recorded in the fiscal nine months of 2012.

(3) Includes litigation expense of $844 million, Synthes integration/transaction costs of $122 million and $35 million for the ASR™ Hip program recorded in the fiscal third quarter of 2013. Includes litigation expense of $1,564 million, Synthes integration/transaction costs of $502 million, in-process research and development charges of $64 million and $117 million for the ASR™ Hip program in the fiscal nine months of 2013. Includes Synthes integration/transaction costs of $165 million, litigation expense of $89 million and $27 million for the ASR^™ Hip program recorded in the fiscal third quarter of 2012. Includes Synthes integration/transaction costs of $388 million, intangible asset write-downs of $146 million, litigation expense of $89 million and $27 million for the ASR^™ Hip program recorded in the fiscal nine months of 2012.

(4) Amounts not allocated to segments include interest income/(expense), noncontrolling interests and general corporate income/expense. The fiscal nine months of 2013 includes litigation expense of $6 million. The fiscal nine months of 2012 includes currency losses related to the Synthes acquisition of $234 million and litigation expense of $11 million.

SALES BY GEOGRAPHIC AREA

	Fiscal Third Quarters Ended
(Dollars in Millions)	September 29, 2013		September 30, 2012		Percent Change
United States	$	7,925	$	7,791	1.7	%
Europe	4,478		3,983		12.4
Western Hemisphere, excluding U.S.	1,842		1,824		1.0
Asia-Pacific, Africa	3,330		3,454		(3.6	)
Total	$	17,575	$	17,052	3.1	%

	Fiscal Nine Months Ended
(Dollars in Millions)	September 29, 2013		September 30, 2012		Percent Change
United States	$	23,896	$	22,370	6.8	%
Europe	13,631		12,342		10.4
Western Hemisphere, excluding U.S.	5,530		5,266		5.0
Asia-Pacific, Africa	9,900		9,688		2.2
Total	$	52,957	$	49,666	6.6	%