Segment Information

9 Months Ended

Sep. 30, 2016

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Note 13: Segment Information

We have two operating segments—human pharmaceutical products and animal health. Our operating segments are distinguished by the ultimate end user of the product—humans or animals. Performance is evaluated based on profit or loss from operations before income taxes.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Segment revenue—to unaffiliated customers:
Human pharmaceutical products:
Endocrinology:
Humalog®	$	640.8	$	705.0	$	1,949.0	$	2,043.3
Forteo®	391.2		348.9		1,077.5		970.4
Humulin®	322.0		316.7		1,010.6		948.8
Trulicity®	243.6		73.7		588.5		136.2
Trajenta	115.4		92.7		330.8		255.0
Other Endocrinology	262.8		249.4		734.5		696.9
Total Endocrinology	1,975.8		1,786.4		5,690.9		5,050.6
Oncology:
Alimta	570.4		628.5		1,741.7		1,865.8
Erbitux	184.6		85.9		533.3		308.8
Cyramza®	159.0		111.2		437.0		266.4
Other Oncology	33.3		35.7		100.3		101.8
Total Oncology	947.3		861.3		2,812.3		2,542.8
Cardiovascular:
Cialis®	588.2		566.1		1,795.3		1,672.3
Effient	127.7		132.1		394.3		382.7
Other Cardiovascular	57.6		61.7		165.4		183.3
Total Cardiovascular	773.5		759.9		2,355.0		2,238.3
Neuroscience:
Cymbalta (1)	313.5		242.9		748.7		804.0
Strattera®	198.8		196.9		611.5		562.4
Zyprexa®	148.9		237.9		572.3		711.2
Other Neuroscience	47.3		46.8		137.4		136.0
Total Neuroscience	708.5		724.5		2,069.9		2,213.6
Other pharmaceuticals	80.4		48.8		213.0		168.5
Total human pharmaceutical products	4,485.5		4,180.9		13,141.1		12,213.8
Animal health	706.2		778.8		2,320.5		2,369.3
Revenue	$	5,191.7	$	4,959.7	$	15,461.6	$	14,583.1

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Segment profits:
Human pharmaceutical products	$	1,089.0		$	1,124.1		$	2,975.3		$	3,224.0
Animal health	104.9			139.8			464.3			443.1
Total segment profits	$	1,193.9		$	1,263.9		$	3,439.6		$	3,667.1
Reconciliation of total segment profits to consolidated income before taxes:
Segment profits	$	1,193.9		$	1,263.9		$	3,439.6		$	3,667.1
Other profits (losses):
Acquired in-process research and development (Note 3)	—			—			—			(336.0		)
Amortization of intangible assets	(177.7		)	(152.5		)	(518.8		)	(457.2		)
Asset impairment, restructuring, and other special charges (Note 5)	(45.5		)	(42.4		)	(234.9		)	(222.8		)
Venezuela charge (Note 12)	—			—			(203.9		)	—
Debt repurchase charges, net (2) (Note 6)	—			—			—			(152.7		)
Inventory fair value adjustment related to Novartis AH (Note 3)	—			(21.2		)	—			(153.0		)
Consolidated income before taxes	$	970.7		$	1,047.8		$	2,482.0		$	2,345.4

⁽¹⁾ Cymbalta revenues include reductions to the reserve for expected product returns of approximately $145 million and $175 million during the three and nine months ended September 30, 2016, respectively.

⁽²⁾ We recognized pretax net charges of $152.7 million for the nine months ended September 30, 2015, attributable to the debt extinguishment loss of $166.7 million from the purchase and redemption of certain fixed-rate notes, partially offset by net gains from non-hedging interest rate swaps and foreign currency transactions associated with the related issuance of euro-denominated notes.

For internal management reporting presented to the chief operating decision maker, certain costs are fully allocated to our human pharmaceutical products segment and therefore are not reflected in the animal health segment's profit. Such items include costs associated with treasury-related financing, global administrative services, certain acquisition-related transaction costs, and certain manufacturing costs.