Deferred income taxes, net of valuation allowances
601
776
Prepaid Expenses - Current
Prepaid expenses
300
270
Total Current Assets
11,648
12,283
Assets - Noncurrent
Property, Plant and Equipment, Net
Property, plant and equipment, net
5,715
5,693
Intangible Assets
Goodwill
4,828
4,823
Intangible Assets (Excluding Goodwill)
Other intangible assets, net
1,933
1,921
Prepaid Expenses - Noncurrent
Prepaid pension
1,172
1,324
Deferred Long-Term Asset Charges
Deferred income taxes, net of valuation allowances
1,675
1,808
Other assets
244
286
Total Assets
27,215
28,138
Liabilities and Stockholders' Equity
Liabilities
Current Liabilities
Accounts Payable and Accrued Expenses
Accounts Payable
Accounts payable
1,174
1,579
Accrued Expenses
Accrued rebates and returns
856
1,056
Dividends payable
550
547
Accrued expenses
2,592
2,446
U.S. and foreign income taxes payable
208
538
Debt and Capital Lease Obligations - Current
Short-term borrowings
630
231
Accrued litigation liabilities
155
493
Total Current Liabilities
6,165
6,890
Liabilities - Noncurrent
Debt and Capital Lease Obligations - Long-Term
Long-Term Debt
Long-term debt
7,837
8,364
Pensions and Other Postemployment Benefits
Pension and other postretirement liabilities
801
804
Deferred Long-Term Liability Charges
Deferred income
232
241
Other liabilities
591
631
Total Liabilities
15,626
16,930
Stockholder's Equity
Common Stock Value (Excluding Additional Paid in Capital) - All Classes
Common stock, par value of $.10 per share: Authorized 4.5 billion shares; 2,205 million issued both in 2006 and 2005
220
220
Preferred Stock Value (Excluding Additional Paid in Capital) - All Types and Classes
Preferred stock, $2 convertible series: Authorized 10 million shares; issued and outstanding 6,201 in 2006 and 6,540 in 2005, liquidation value of $50 per share
0
0
Capital in excess of par value of stock
2,493
2,457
Retained Earnings
Retained earnings
20,531
20,464
Treasury Stock Value - All Types and Classes
Less cost of treasury stock-238 million common shares in 2006 and 248 million in 2005
10,945
11,168
Other Accumulated Comprehensive Income
Accumulated other comprehensive loss
(710)
(765)
Total Stockholders' Equity
11,589
11,208
Total Liabilities and Stockholders' Equity
$ 27,215
$ 28,138
Income Statement (USD $)
In Millions
3 Months Ended Sep. 30, 2006
9 Months Ended Sep. 30, 2006
3 Months Ended Sep. 30, 2005
9 Months Ended Sep. 30, 2005
Income Statement
Revenue
Sales Revenue
Net Sales
$ 4,154
$ 13,701
$ 4,767
$ 14,188
Cost of Goods and Services Sold
Cost of Goods Sold
Cost of products sold
1,465
4,509
1,483
4,333
Operating Expenses
Selling, General and Administrative Expenses
Selling and Marketing Expenses
Marketing and Advertising Expenses
Advertising and product promotion
286
933
349
1,032
Marketing, selling and administrative
1,189
3,608
1,286
3,737
Research and Development Expense
Research Development and Engineering Expense - Total
Research and development
756
2,246
669
1,971
Restructuring, Remediation and Impairment Provisions
Restructuring Charges
Provision for restructuring, net
2
6
(5)
0
Litigation (income)/charges, net
(9)
(44)
(26)
72
Total expenses
3,537
10,781
3,141
10,504
Nonoperating Income/(Expense)
Nonoperating Gains/(Losses)
Gain on sale of product asset and businesses
0
200
569
569
Nonoperating Income/(Expense) - Other
Other (income)/expense, net
34
(59)
(38)
(168)
Earnings from Continuing Operations Before Minority Interest and Income Taxes
617
2,920
1,626
3,684
Provision for Income Taxes
Provision for income taxes
193
777
507
754
Earnings from Continuing Operations
338
1,719
964
2,493
Minority interest, net of taxes
86
424
155
437
Equity in net income of affiliates
118
336
84
240
Income/(Loss) from Discontinued Operations, Net of Tax
Loss, net of taxes
0
0
0
(5)
Income/(Loss) from Disposition of Discontinued Operations, Net of Tax Effect
Gain on disposal, net of taxes
0
0
0
13
Income/(Loss) from Discontinued Operations, Net of Tax Effect
0
0
0
8
Net Earnings
338
1,719
964
2,501
Basic Earnings Per Share Details
Earnings from Continuing Operations
0.17
0.88
0.49
1.28
Loss, net of taxes
0
0
0
0
Gain on disposal, net of taxes
0
0
0
0
Net Earnings per Common Share
0.17
0.88
0.49
1.28
Average Common Shares Outstanding Basic
1,961
1,959
1,953
1,951
Diluted Earnings Per Share Details
Earnings from Continuing Operations
0.17
0.88
0.49
1.27
Loss, net of taxes
0
0
0
0
Gain on disposal, net of taxes
0
0
0
0
Net Earnings per Common Share
0.17
0.88
0.49
1.27
Average Common Shares Outstanding Diluted
1,992
1,991
1,984
1,983
Dividends declared per common share
0.28
0.84
0.28
0.84
Statement of Cash Flows - Indirect Method (USD $)
In Millions
9 Months Ended Sep. 30,
2006
2005
Statement of Cash Flows
Net Cash Flows Provided By/(Used In) Operating Activities, Indirect
Net earnings
$ 1,719
$ 2,501
Depreciation and Amortization
Depreciation
420
427
Amortization
273
263
Litigation settlement (income)/expense, net of recoveries
(44)
72
Increase/(Decrease) in Provision for Restructuring
Provision for restructuring
6
0
Impairment charges and asset write-offs
91
19
Loss/(gain) on disposal of property, plant and equipment and investment in other companies
(19)
4
Gain on sale of product assets and businesses
207
632
Deferred income tax expense/(benefits)
238
(561)
(Under)/over distribution of earnings from affiliates
(40)
61
Unfunded pension expense
168
178
Stock-based compensation expense
91
28
Increase/(Decrease) in Working Capital
Increase/(Decrease) in Current Assets
Receivables
(501)
(649)
Inventories
172
344
Prepaid expenses
25
0
Increase/(Decrease) in Current Liabilities
Increase/(Decrease) in Accounts Payable and Accrued Expenses
Accounts payable and accrued expenses
(486)
(511)
U.S. and foreign income taxes payable
(283)
(568)
Product liability
(44)
(42)
Other assets
(4)
(8)
Other liabilities
(62)
(120)
Litigation settlement payments, net of insurance recoveries
295
(115)
Net Cash Provided by Operating Activities
1,872
1,539
Net Cash Flows Provided By/(Used In) Investing Activities
Additions to property, plant and equipment and capitalized software
561
537
Purchases and Payments for Investments
Acquisition/(Divestiture) of Business Activities, Net
Proceeds from sale of product assets and businesses
226
843
Purchases of and proceeds from marketable securities, net
79
2,140
Purchase of trademarks, patents, licenses & other businesses and investments in other companies
6
28
Proceeds from disposal of property, plant and equipment and investment in other companies
8
96
Upfront and milestone payments
280
0
Net Cash (Used in)/Provided by Investing Activities
(534)
2,514
Net Cash Flows Provided By/(Used In) Financing Activities
Increase/(Decrease) in Debt
Increase/(Decrease) in Short-Term Borrowings
Repayments of Short-Term Borrowings
Repayments of short-term borrowings
101
1,583
Increase/(Decrease) in Long-Term Debt and Capital Securities
Proceeds from Issuance of Long-Term Debt and Capital Securities
Long-term debt borrowings
6
8
Repayments of Long-Term Debt and Capital Securities
Long-term debt repayments
0
2,502
Increase/(Decrease) in Equity
Proceeds from Issuance of Equity
Issuances of common stock under stock plans and excess tax benefits from share-based payment arrangements
168
126
Payment of Dividends
Dividends paid
1,649
1,639
Net Cash Used in Financing Activities
(1,576)
(5,590)
Effect of Exchange Rates on Cash and Cash Equivalents