Quarterly financial data (unaudited)

12 Months Ended

Dec. 31, 2011

Quarterly financial data (unaudited) [Abstract]

Quarterly financial data (unaudited)

21. Quarterly financial data (unaudited)

	2011 Quarters ended
(In millions, except per share data)	December 31		September  30(1)		June 30		March 31
Product sales	$	3,907	$	3,877	$	3,893	$	3,618
Gross profit from product sales		3,251		3,272		3,291		3,054
Net income		934		454		1,170		1,125
Earnings per share:
Basic	$	1.09	$	0.50	$	1.26	$	1.21
Diluted	$	1.08	$	0.50	$	1.25	$	1.20
	2010 Quarters ended
(In millions, except per share data)	December  31(2)		September  30(3)		June 30		March 31
Product sales	$	3,760	$	3,759	$	3,613	$	3,528
Gross profit from product sales		3,188		3,172		3,060		3,020
Net income		1,022		1,236		1,202		1,167
Earnings per share:
Basic	$	1.09	$	1.29	$	1.25	$	1.19
Diluted	$	1.08	$	1.28	$	1.25	$	1.18

⁽¹⁾  We recorded a $780 million legal settlement charge ($705 million, net of tax) in connection with an agreement in principle to settle allegations relating to our sales and marketing practices.

⁽²⁾  We recorded $113 million of income tax benefit as the result of resolving certain transfer pricing issues with tax authorities for prior periods and a $118 million ($74 million, net of tax) asset impairment charge associated with a strategic decision to optimize our network of manufacturing facilities and improve cost efficiencies.

⁽³⁾  We recorded $38 million of income tax benefit as the result of resolving certain transfer pricing issues with tax authorities for prior periods.

See Note 4, Income taxes, and Note 18, Contingencies and commitments, for further discussion of the items described above.