16. Unaudited Interim Financial Information


2014	1st Qtr		2nd Qtr			3rd Qtr		4th Qtr		Year
(dollars in millions except per share amounts)
Net sales	$	799.3	$	827.1		$	830.0	$	867.2	$	3,323.6
Cost of goods sold		309.5		320.7			308.9		319.5		1,258.6
Income (loss) from operations before income taxes		183.6		(92.8	)		180.3		174.7		445.8
Net income (loss)		148.4		(119.4	)		131.3		134.2		294.5
Basic earnings (loss) per share available to common shareholders^(A)		1.89		(1.59	)		1.73		1.76		3.83
Diluted earnings (loss) per share available to common shareholders^(A)		1.86		(1.59	)^(B)		1.69		1.72		3.76

^(A)	Total per share amounts may not add due to rounding.

^(B)	Common share equivalents primarily from share-based compensation plans were not included in the computation of diluted weighted average shares outstanding because their effect would have been antidilutive.

The first quarter 2014 included a benefit of $10.9 million to the income tax provision as a result of the completion of IRS examinations for the tax years 2008 through 2010, a gain on sale of an equity investment of $7.1 million, and acquisition-related items of $3.1 million primarily consisting of integration costs. These items increased net income by $13.5 million after tax, or $0.17 diluted earnings per share available to common shareholders.

The second quarter 2014 included litigation charges, net, of $262.7 million, and acquisition-related items of $22.5 million primarily consisting of a purchase accounting adjustment of $20.7 million. These items increased net loss by $262.4 million after tax, or $3.37 diluted loss per share available to common shareholders.

The third quarter of 2014 included litigation-related defense costs of $13.2 million incurred in connection with the WHP Pre-Trial Orders and an impairment charge for an IPR&D project of $6.2 million. These items decreased net income by $18.3 million after tax, or $0.24 diluted earnings per share available to common shareholders.

The fourth quarter of 2014 included litigation-related defense costs of $12.7 million incurred in connection with the WHP Pre-Trial Orders, restructuring and productivity initiative costs of $10.1 million, and acquisition-related items of $7.5 million primarily consisting of a purchase accounting adjustment of $5.0 million. Also included was a credit of $3.5 million related to the excise tax paid on U.S. medical device sales in 2013 associated with an agreement reached with the IRS during 2014. These items decreased net income by $24.7 million after tax, or $0.32 diluted earnings per share available to common shareholders.


2013	1st Qtr		2nd Qtr			3rd Qtr		4th Qtr		Year
(dollars in millions except per share amounts)
Net sales	$	740.3	$	759.9		$	758.0	$	791.3	$	3,049.5
Cost of goods sold		295.3		296.6			291.9		310.6		1,194.4
Income (loss) from operations before income taxes		127.6		(135.9	)		119.0		1,102.7		1,213.4
Net income (loss)		90.7		(161.6	)		93.2		667.5		689.8
Basic earnings (loss) per share available to common shareholders^(A)		1.09		(2.03	)		1.17		8.45		8.54
Diluted earnings (loss) per share available to common shareholders^(A)		1.08		(2.03	)^(B)		1.15		8.28		8.39

^(A)	Total per share amounts may not add due to rounding.

^(B)	Common share equivalents primarily from share-based compensation plans were not included in the computation of diluted weighted average shares outstanding because their effect would have been antidilutive.

The first quarter 2013 included litigation charges of $25.8 million and asset impairments of $5.7 million. These items decreased net income by $29.3 million after tax, or $0.35 diluted earnings per share available to common shareholders.

The second quarter 2013 included litigation charges, net, of $292.4 million, asset impairments of $3.2 million, and a reversal of $1.4 million of restructuring costs. These items increased net loss by $277.1 million after tax, or $3.35 diluted loss per share available to common shareholders.

The third quarter 2013 included acquisition-related items of $33.7 million primarily consisting of an IPR&D charge related to the acquisition of early-stage technology of $29.5 million, divestiture-related charges of $9.7 million, and an impairment charge for an IPR&D project of $3.4 million. The income tax provision decreased $2.2 million due to remeasurement of an uncertain tax position. These items decreased net income by $29.1 million after tax, or $0.36 diluted earnings per share available to common shareholders.

The fourth quarter 2013 included Gore Proceeds of $894.3 million, a gain on the EP Sale of $213.0 million, and litigation charges, net, of $109.8 million. Also included were a contribution to the C. R. Bard Foundation, Inc. of $22.5 million, acquisition-related items of $14.0 million primarily consisting of integration costs of $11.2 million, and divestiture-related charges of $7.8 million. These items increased net income by $552.8 million after tax, or $6.86 diluted earnings per share available to common shareholders.