Spreadsheet: 0015fdfc-a93b-4a0c-aab1-e696c69de0b3
Sheet: Sheet1

Unnamed: 0 | Unnamed: 1 | Unnamed: 2 | Unnamed: 3 | Unnamed: 4 | Unnamed: 5 | Unnamed: 6 | Unnamed: 7 | Unnamed: 8 | Unnamed: 9
 | Consolidated Statements of Income
 | (Unaudited, U.S. dollars in millions, except share and per share data)
 |  |  |  | Three months ended |  |  |  | Six months ended
 |  |  |  | June 30, |  |  |  | June 30,
 |  |  | 2011 |  | 2010 |  | 2011 |  | 2010
 | Net sales |  | 4212 |  | 3800 |  | 8292 |  | 7453
 | Cost of sales (a) |  | 2012 |  | 1679 |  | 3904 |  | 3319
 | Gross profit |  | 2200 |  | 2121 |  | 4388 |  | 4134
 | Research and development expenses – net |  | 243 |  | 217 |  | 482 |  | 424
 | Selling and marketing expenses (b) |  | 804 |  | 644 |  | 1636 |  | 1396
 | General and administrative expenses |  | 284 |  | 189 |  | 505 |  | 371
 | Legal settlements, acquisition and restructuring expenses and impairment |  | 272 |  | -9 |  | 301 |  | 25
 | Purchase of research and development in process |  | 0 |  | 5 |  | 0 |  | 9
 | Operating income |  | 597 |  | 1075 |  | 1464 |  | 1909
 | Financial (income) expenses – net (c) |  | -20 |  | 148 |  | 18 |  | 175
 | Income before income taxes |  | 617 |  | 927 |  | 1446 |  | 1734
 | Provision for income taxes (d) |  | 27 |  | 118 |  | 76 |  | 203
 |  |  | 590 |  | 809 |  | 1370 |  | 1531
 | Share in losses of associated companies – net |  | 10 |  | 9 |  | 25 |  | 17
 | Net income |  | 580 |  | 800 |  | 1345 |  | 1514
 | Net income attributable to non-controlling interests |  | 4 |  | 3 |  | 8 |  | 4
 | Net income attributable to [NAME] |  | 576 |  | 797 |  | 1337 |  | 1510
 | GAAP earnings per share attributable to [NAME]: | Basic    ($) | 0.65 |  | 0.89 |  | 1.49 |  | 1.69
 |  | Diluted ($) | 0.64 |  | 0.88 |  | 1.49 |  | 1.66
 | Weighted average number of shares (in millions): | Basic | 892 |  | 895 |  | 894.554 |  | 894
 |  | Diluted | 896 |  | 921 |  | 898.94 |  | 921
 | Non-GAAP net income attributable to [NAME]:* |  | 984 |  | 981 |  | 1920 |  | 1811
 | Non-GAAP earnings per share attributable to [NAME]:* | Basic    ($) | 1.1 |  | 1.1 |  | 2.15 |  | 2.03
 |  | Diluted ($) | 1.1 |  | 1.08 |  | 2.14 |  | 1.99
 | Weighted average number of shares (in millions): | Basic | 892 |  | 895.265 |  | 895 |  | 893.53
 |  | Diluted | 896 |  | 921.216 |  | 899 |  | 920.94
 | * See reconciliation attached.
 | (a) Cost of sales includes $152 million and $122 million of amortization of purchased intangible assets in the three months ended June 30, 2011 and 2010, respectively, $45 million of costs related to regulatory actions taken in facilities in the three months ended June 30, 2011 and $15 million of inventory step-up in the three months ended June 30, 2011.
 | (b) Selling and marketing expenses includes $10 million and $8 million of amortization of purchased intangible assets in the three months ended June 30, 2011 and 2010, respectively.
 | (c) Financial expenses includes $147 million resulting from hedging of the ratiopharm acquisition offset by $24 million gain from sale of securities in the three months ended June 30, 2010.
 | (d) Provision for income taxes includes $86 million and $65 million of related tax effect of non-GAAP charges in the three months ended June 30, 2011 and 2010, respectively.