Fourth-Quarter and Full-Year Expense and Other Information

The costs detailed below totaled $10.0 billion on a GAAP basis during the fourth quarter of 2012 and include $1.6 billion of acquisition-related costs and restructuring costs.
   
$ in millions Included in expenses for the period
Fourth Quarter 2012  

 

GAAP
 

Acquisition- Related Costs 4
 

Restructuring Costs
 

Certain Other Items
 

 

Non-GAAP 1
Materials and production   $4,160   $1,185   $40     $2,935
Marketing and administrative   3,390   89   20     3,281
Research and development   2,224   24   3     2,197
Restructuring costs   191     191    
 
Fourth Quarter 2011                    
Materials and production   $4,176   $1,212   $68   $7   $2,889
Marketing and administrative   3,704   86   42     3,576
Research and development   2,419   244   49     2,126
Restructuring costs   533     533    

The costs detailed below totaled $38.1 billion on a GAAP basis for full-year 2012 and include $6.3 billion of acquisition-related costs and restructuring costs.
   
$ in millions Included in expenses for the period

Year Ended Dec. 31, 2012
 

 

GAAP
 

Acquisition- Related Costs 4
 

Restructuring Costs
 

Certain Other Items
 

 

Non-GAAP 1
Materials and production   $16,446   $4,872   $188     $11,386
Marketing and administrative   12,776   272   90     12,414
Research and development   8,168   200   57     7,911
Restructuring costs   664     664    
 

Year Ended Dec. 31, 2011
                   
Materials and production   $16,871   $5,137   $348   $7   $11,379
Marketing and administrative   13,733   278   119     13,336
Research and development   8,467   587   138     7,742
Restructuring costs   1,306     1,306    

The gross margin was 64.6 percent for the fourth quarter of 2012 and 66.0 percent for the fourth quarter of 2011, reflecting 10.4 and 10.5 percentage point unfavorable impacts, respectively, from the acquisition-related costs and restructuring costs noted above. The non-GAAP gross margin decline primarily reflects the impact of the SINGULAIR patent expiry in the United States.

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