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## Bristol-Myers Squibb 

Upfront, pre-approval milestone and other licensing receipts obtained during development are deferred and amortized over the estimated life of the product in other income. If the Company has no future obligation for development, upfront milestone and other licensing receipts are recognized immediately in other income. The amortization period of upfront, licensing and milestone receipts is assessed and determined after considering terms of the arrangements. 

## 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 supply chain organization are utilized and responsible for the development and delivery of products to the market. Regional commercial organizations are used to distribute and sell the product. The business is also supported by global corporate staff functions. Segment information 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 global gross sales were as follows: 

<img src='content_image/226819.jpg'>

(a) Includes Puerto Rico. 

(b) Includes Russia and Turkey. 

(c) Includes Japan, China, Canada, Australia and Brazil, among other countries. 

(d) Includes royalty-related revenues and sales attributed to supply agreements. 

Net sales of key products were as follows: 

<img src='content_image/226820.jpg'>

