A reconciliation of GAAP to non-GAAP net income and EPS is provided in the tables that follow. Year-to-date results can be found in the attached tables.

       
Second Quarter   Second Quarter
$ in millions, except EPS amounts 2014   2013
EPS        
GAAP EPS   $0.68   $0.30

Difference 3
  0.17   0.54
Non-GAAP EPS that excludes items listed below 1   $0.85   $0.84
 
Net Income        
GAAP net income 2   $2,004   $906
Difference   489   1,624
Non-GAAP net income that excludes items listed below 1,2   $2,493   $2,530
 
Decrease (Increase) in Net Income Due to Excluded Items:        

Acquisition- and divestiture-related costs 4
  $1,756   $1,768
Restructuring costs   421   278
Gain on AstraZeneca option exercise   (741)   --
Other   --   (13)
Net decrease (increase) in income before taxes   1,436   2,033

Income tax (benefit) expense 5
  (947)   (409)
Decrease (increase) in net income   $489   $1,624
 

“We delivered a strong first half of the year, making progress in transforming our operating model, fueling innovation and managing costs, while focusing on our best opportunities,” said Kenneth C. Frazier, chairman and chief executive officer, Merck. “I’m excited as we are preparing for a series of important and promising product launches later this year that we believe will make a meaningful difference to patients, healthcare providers and payers, while creating value for society and shareholders.”

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