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Comprehensive income (loss)

^[1]

174.5

(645.1)

(588.9)

$ (29.6)

$ 2,092.5

$ 1,819.5

[1]

Other comprehensive loss in 2016 consists of $693.3 million of other comprehensive loss attributable to controlling interest and $48.2 million of other comprehensive income attributable to non-controlling interest. Other comprehensive income in 2017 consists of $199.0 million of other comprehensive income attributable to controlling interest and $24.5 million of other comprehensive loss attributable to non-controlling interest.

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Statement of Other Comprehensive Income [Abstract]
Other comprehensive income (loss), attributed to parent	$ 199.0	$ (693.3)
Other comprehensive income (loss), non-controlling interest	$ (24.5)	$ 48.2

Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Current Assets
Cash and cash equivalents (Note 7)	$ 6,536.2	$ 4,582.1
Short-term investments (Note 7)	1,497.9	1,456.5
Accounts receivable, net of allowances of $38.7 (2017) and $40.3 (2016)	4,546.3	4,029.4
Other receivables	715.9	736.9
Inventories (Note 6)	4,458.3	3,561.9
Prepaid expenses and other	1,447.5	734.6
Total current assets	19,202.1	15,101.4
Other Assets
Investments (Note 7)	5,678.8	5,207.5
Goodwill (Note 8)	4,370.1	3,972.7
Other intangibles, net (Note 8)	4,029.2	4,357.9
Sundry	2,874.3	1,913.8
Total other assets	16,952.4	15,451.9
Property and equipment, net (Note 9)	8,826.5	8,252.6
Total assets	44,981.0	38,805.9
Current Liabilities
Short-term borrowings and current maturities of long-term debt (Note 10)	3,706.6	1,937.4
Accounts payable	1,410.7	1,349.3
Employee compensation	997.9	896.9
Sales rebates and discounts	4,465.1	3,914.9
Dividends payable	590.6	548.1
Income taxes payable (Note 13)	532.9	119.1
Other current liabilities	2,832.1	2,220.9
Total current liabilities	14,535.9	10,986.6
Other Liabilities
Long-term debt (Note 10)	9,940.5	8,367.8
Accrued retirement benefits (Note 14)	3,513.9	2,453.9
Long-term income taxes payable (Note 13)	3,776.5	688.9
Other noncurrent liabilities	1,546.3	2,228.2
Total other liabilities	18,777.2	13,738.8
Eli Lilly and Company Shareholders' Equity (Notes 11 and 12)
Common stock—no par value Authorized shares: 3,200,000 Issued shares: 1,100,672 (2017) and 1,101,586 (2016)	687.9	688.5
Additional paid-in capital	5,817.8	5,640.6
Retained earnings	13,894.1	16,046.3
Employee benefit trust	(3,013.2)	(3,013.2)
Accumulated other comprehensive loss (Note 16)	(5,718.6)	(5,274.0)
Cost of common stock in treasury	(75.8)	(80.5)
Total Eli Lilly and Company shareholders' equity	11,592.2	14,007.7
Noncontrolling interests	75.7	72.8
Total equity	11,667.9	14,080.5
Total liabilities and equity	$ 44,981.0	$ 38,805.9

Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Accounts receivable, allowances	$ 38.7	$ 40.3
Issued shares, shares in thousands	1,100,672	1,101,586

Consolidated Statements of Shareholders' Equity Statement - USD ($) shares in Thousands, $ in Millions	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Common Stock in Treasury	Employee Benefit Trust
Shares, Beginning Balance at Dec. 31, 2014		1,111,437				810
Shareholders' equity, Beginning Balance at Dec. 31, 2014	$ 15,373.2	$ 694.6	$ 5,292.3	$ 16,482.7	$ (3,991.8)	$ (91.4)	$ (3,013.2)
Increase (Decrease) in Shareholders' Equity [Roll Forward]
Net income (loss)	2,408.4			2,408.4
Other comprehensive income (loss), net of tax	(588.9)				(588.9)
Cash dividends declared	(2,136.0)			(2,136.0)
Retirement of treasury shares, shares		(9,877)				(9,877)
Retirement of treasury shares	0.0	$ (6.2)		(743.3)		$ 749.5
Purchase of treasury shares, shares						9,877
Purchase of treasury shares	(749.5)					$ (749.5)
Issuance of stock under employee stock plans, net, shares		4,503				(14)
Issuance of stock under employee stock plans, net	(46.3)	$ (2.9)	(42.0)			$ (1.4)
Stock-based compensation	217.8		217.8
Shareholders' equity, Ending Balance at Dec. 31, 2015	14,571.3	$ 691.3	5,552.1	16,011.8	(4,580.7)	$ (90.0)	(3,013.2)
Shares, Ending Balance at Dec. 31, 2015		1,106,063				796
Increase (Decrease) in Shareholders' Equity [Roll Forward]
Net income (loss)	2,737.6			2,737.6
Other comprehensive income (loss), net of tax	(693.3)				(693.3)
Cash dividends declared	(2,167.6)			(2,167.6)
Retirement of treasury shares, shares		(7,306)				(7,306)
Retirement of treasury shares	0.0	$ (4.6)		(535.5)		$ 540.1
Purchase of treasury shares, shares						7,306
Purchase of treasury shares	(600.1)		(60.0)			$ (540.1)
Issuance of stock under employee stock plans, net, shares		2,829				(85)
Issuance of stock under employee stock plans, net	(95.5)	$ (1.8)	106.8			$ (9.5)
Stock-based compensation	255.3		255.3
Shareholders' equity, Ending Balance at Dec. 31, 2016	14,007.7	$ 688.5	5,640.6	16,046.3	(5,274.0)	$ (80.5)	(3,013.2)
Shares, Ending Balance at Dec. 31, 2016		1,101,586				711
Increase (Decrease) in Shareholders' Equity [Roll Forward]
Net income (loss)	(204.1)			(204.1)
Other comprehensive income (loss), net of tax	199.0				199.0
Cash dividends declared	(2,234.6)			(2,234.6)
Retirement of treasury shares, shares		(4,390)				(4,390)
Retirement of treasury shares	0.0	$ (2.7)		(357.1)		$ 359.8
Purchase of treasury shares, shares						4,390
Purchase of treasury shares	(299.8)		60.0			$ (359.8)
Issuance of stock under employee stock plans, net, shares		3,476				(47)
Issuance of stock under employee stock plans, net	(157.3)	$ (2.1)	164.1			$ (4.7)
Stock-based compensation	281.3		281.3
Shareholders' equity, Ending Balance at Dec. 31, 2017	$ 11,592.2	$ 687.9	$ 5,817.8	13,894.1	(5,718.6)	$ (75.8)	$ (3,013.2)
Shares, Ending Balance at Dec. 31, 2017		1,100,672				664
Increase (Decrease) in Shareholders' Equity [Roll Forward]
Reclassification of stranded tax effects - provisional (Note 2)				$ 643.6	$ (643.6)

Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Cash Flows from Operating Activities
Net income (loss)	$ (204.1)	$ 2,737.6	$ 2,408.4
Adjustments to Reconcile Net Income (Loss) to Cash Flows from Operating Activities:
Depreciation and amortization	1,567.3	1,496.6	1,427.7
Change in deferred income taxes	(787.9)	439.5	(748.4)
Stock-based compensation expense	281.3	255.3	217.8
Acquired in-process research and development	1,112.6	30.0	535.0
Other non-cash operating activities, net	441.5	376.1	263.3
Other changes in operating assets and liabilities, net of acquisitions and divestitures:
Receivables—(increase) decrease	(357.0)	(709.4)	(304.5)
Inventories—(increase) decrease	(253.9)	(328.2)	(736.3)
Other assets—(increase) decrease	(590.1)	(265.5)	(288.5)
Income taxes payable—increase (decrease)	3,489.6	(304.8)	(17.8)
Accounts payable and other liabilities—increase (decrease)	916.3	1,123.8	207.9
Net Cash Provided by Operating Activities	5,615.6	4,851.0	2,964.6
Cash Flows from Investing Activities
Purchases of property and equipment	(1,076.8)	(1,037.0)	(1,066.2)
Disposals of property and equipment	40.7	73.4	92.6
Cash released for pending acquisition (Note 3)	0.0	0.0	5,405.6
Proceeds from sales and maturities of short-term investments	4,852.5	1,642.0	2,161.8
Purchases of short-term investments	(3,389.7)	(1,327.4)	(842.2)
Proceeds from sales of noncurrent investments	2,586.0	2,086.0	3,068.4
Purchases of noncurrent investments	(4,611.6)	(4,346.0)	(3,226.5)
Proceeds from sale of product rights	0.0	0.0	410.0
Purchases of in-process research and development	(1,086.8)	(55.0)	(560.0)
Cash paid for acquisitions, net of cash acquired (Note 3)	(882.1)	(45.0)	(5,283.1)
Other investing activities, net	(215.8)	(130.1)	(133.6)
Net Cash Provided by (Used for) Investing Activities	(3,783.6)	(3,139.1)	26.8
Cash Flows from Financing Activities
Dividends paid	(2,192.1)	(2,158.5)	(2,127.3)
Net change in short-term borrowings	1,397.5	1,293.2	(2,680.6)
Proceeds from issuance of long-term debt	2,232.0	1,206.6	4,454.7
Repayments of long-term debt	(630.6)	(0.2)	(1,955.7)
Purchases of common stock	(299.8)	(600.1)	(749.5)
Other financing activities, net	(364.4)	(300.8)	(52.6)
Net Cash Provided by (Used for) Financing Activities	142.6	(559.8)	(3,111.0)
Effect of exchange rate changes on cash and cash equivalents	(20.5)	(236.4)	(85.6)
Net increase (decrease) in cash and cash equivalents	1,954.1	915.7	(205.2)
Cash and cash equivalents at beginning of year	4,582.1	3,666.4	3,871.6
Cash and Cash Equivalents at End of Year	$ 6,536.2	$ 4,582.1	$ 3,666.4

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Basis of presentation

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP). The accounts of all wholly-owned and majority-owned subsidiaries are included in the consolidated financial statements. Where our ownership of consolidated subsidiaries is less than 100 percent, the noncontrolling shareholders’ interests are reflected as a separate component of equity. All intercompany balances and transactions have been eliminated.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and related disclosures at the date of the financial statements and during the reporting period. Actual results could differ from those estimates. We issued our financial statements by filing with the Securities and Exchange Commission and have evaluated subsequent events up to the time of the filing.

Certain reclassifications have been made to prior periods in the consolidated financial statements and accompanying notes to conform with the current presentation.

All per-share amounts, unless otherwise noted in the footnotes, are presented on a diluted basis, that is, based on the weighted-average number of outstanding common shares plus the effect of incremental shares from our stock-based compensation programs.

Revenue recognition

We recognize revenue from sales of products at the time title of goods passes to the buyer and the buyer assumes the risks and rewards of ownership. Provisions for returns, discounts, and rebates are established in the same period the related sales are recognized.

In arrangements involving the delivery of more than one element (e.g., research and development, marketing and selling, manufacturing, and distribution), each required deliverable is evaluated to determine whether it qualifies as a separate unit of accounting. Our determination is based on whether the deliverable has "standalone value" to the customer. If a deliverable does not qualify as a separate unit of accounting, it is combined with the other applicable undelivered item(s) within the arrangement and these combined deliverables are treated as a single unit of accounting. The arrangement's consideration that is fixed or determinable is then allocated to each separate unit of accounting based on the relative selling price of each deliverable.

Initial fees we receive in collaborative and other similar arrangements from the partnering of our compounds under development are generally deferred and amortized into income through the expected product approval date. Initial fees may also be received for out-licensing agreements that include both an out-license of our marketing rights to commercialized products and a related commitment to supply the products. When we have determined that the marketing rights do not have standalone value, the initial fees received are generally deferred and amortized to income as net product sales over the term of the supply agreement.

Royalty revenue from licensees, which is based on third-party sales of licensed products and technology, is recorded as earned in accordance with the contract terms when third-party sales can be reasonably measured and collection of the funds is reasonably assured. This royalty revenue is included in collaboration and other revenue.

Profit-sharing due from our collaboration partners, which is based upon gross margins reported to us by our partners, is recognized as collaboration and other revenue as earned.

Developmental milestone payments earned by us are generally recorded in other–net, (income) expense. We immediately recognize the full amount of developmental milestone payments due to us upon the achievement of the milestone event if the event is objectively determinable and the milestone is substantive in its entirety. A milestone is considered substantive if the consideration earned 1) relates solely to past performance, 2) is commensurate with the enhancement in the pharmaceutical or animal health product's value associated with the achievement of the important event in its development life cycle, and 3) is reasonable relative to all of the deliverables and payment terms within the arrangement. If a milestone payment to us is part of a multiple-element commercialization arrangement and is triggered by the initiation of the commercialization period (e.g., regulatory approval for marketing or launch of the product) or the achievement of a sales-based threshold, we amortize the payment to income as we perform under the terms of the arrangement. See Note 4 for specific agreement details.

Research and development expenses and acquired in-process research and development

Research and development expenses include the following:


•	Research and development costs, which are expensed as incurred.


•	Milestone payment obligations incurred prior to regulatory approval of the product, which are accrued when the event requiring payment of the milestone occurs.

Acquired in-process research and development (IPR&D) expense includes the initial costs of IPR&D projects, acquired directly in a transaction other than a business combination, that do not have an alternative future use.

Earnings per share

We calculate basic earnings per share (EPS) based on the weighted-average number of common shares outstanding and incremental shares from potential participating securities. We calculate diluted EPS based on the weighted-average number of common shares outstanding, including incremental shares from our stock-based compensation programs.

Foreign Currency Translation

Operations in our subsidiaries outside the United States (U.S.) are recorded in the functional currency of each subsidiary which is determined by a review of the environment where each subsidiary primarily generates and expends cash. The results of operations for our subsidiaries outside the U.S. are translated from functional currencies into U.S. dollars using the weighted average currency rate for the period. Assets and liabilities are translated using the period end exchange rates. The U.S. dollar effects that arise from translating the net assets of these subsidiaries are recorded in other comprehensive income (loss).

Other significant accounting policies

Our other significant accounting policies are described in the remaining appropriate notes to the consolidated financial statements.

Implementation of New Financial Accounting Pronouncements

12 Months Ended

Dec. 31, 2017

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

New Accounting Pronouncements and Changes in Accounting Principles

Implementation of New Financial Accounting Pronouncements

We elected to early adopt Accounting Standards Update 2018-02, Income Statement-Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which allows a reclassification from accumulated other comprehensive loss (AOCL) to retained earnings for stranded tax effects resulting from the 2017 Tax Act (see Note 13). This standard allows us to reclassify the effect of remeasuring deferred tax liabilities and assets related to items within AOCL using the newly enacted 21 percent federal corporate income tax rate. The provisional effect of this early adoption was a reclassification from AOCL resulting in an increase to retained earnings of $643.6 million.

The following table provides a brief description of accounting standards that had not yet been adopted as of December 31, 2017 and could have a material effect on our financial statements:



Standard	Description	Effective Date	Effect on the financial statements or other significant matters
Accounting Standards Update 2014-09 and various other related updates, Revenue from Contracts with Customers	This standard replaced existing revenue recognition standards and requires entities to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. An entity can apply the new revenue standard retrospectively to each prior reporting period presented or with the cumulative effect of initially applying the standard recognized at the date of initial application in retained earnings. We applied the latter approach.	This standard was effective January 1, 2018, and we adopted on that date.	Our evaluation of our contracts subject to this standard is complete and we do not expect the application of the new standard to these contracts to have a material impact to our consolidated statements of operations or balance sheets at initial implementation. We are also evaluating the new disclosures required by the standard to determine what additional information will need to be disclosed.
Accounting Standards Update 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities	This standard requires entities to recognize changes in the fair value of equity investments with readily determinable fair values in net income (except for investments accounted for under the equity method of accounting or those that result in consolidation of the investee). An entity should apply the new standard through a cumulative effect adjustment to retained earnings as of the beginning of the fiscal year of adoption.	This standard was effective January 1, 2018, and we adopted on that date.	We will reclassify from accumulated other comprehensive income the after-tax amount of net unrealized gains resulting in an increase to retained earnings of approximately $105 million.



Standard	Description	Effective Date	Effect on the financial statements or other significant matters
Accounting Standards Update 2016-02, Leases	This standard was issued to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities, including leases classified as operating leases under current GAAP, on the balance sheet and requiring additional disclosures about leasing arrangements. This standard requires a modified retrospective approach to adoption.	This standard is effective January 1, 2019, with early adoption permitted. We intend to adopt this standard on January 1, 2019.	We are in the process of determining the impact on our consolidated financial statements. We have selected a software solution to be compatible with our enterprise software system. Development of our selected solution is ongoing, as it is not yet fully compliant with the requirements of the standard. The timely readiness of the lease software system is critical to ensure an efficient and effective adoption of the standard.
Accounting Standards Update 2016-16, Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory	This standard requires entities to recognize the income tax consequences of intra-entity transfers of assets other than inventory at the time of transfer. This standard requires a modified retrospective approach to adoption.	This standard was effective January 1, 2018, and we adopted on that date.	We currently estimate that the cumulative effect of initially applying the standard will result in an increase to deferred tax assets and retained earnings of approximately $2.5 billion.

Acquisitions

12 Months Ended

Dec. 31, 2017

Business Combinations [Abstract]

Acquisitions

During 2017 and 2015, we completed the acquisitions of Boehringer Ingelheim Vetmedica, Inc.'s U.S. feline, canine, and rabies vaccine portfolio and other related assets (BIVIVP) and Novartis Animal Health (Novartis AH), respectively. Additionally, on October 1, 2015, Bristol-Myers Squibb Company and E.R. Squibb (collectively, BMS) transferred to us their commercialization rights with respect to Erbitux^® in the U.S. and Canada (collectively, North America) through a modification of our existing arrangement. See Note 4 for additional information related to the Erbitux arrangement. We also had an immaterial acquisition of a business in 2016. These transactions, as further discussed in this note below in Acquisitions of Businesses, were accounted for as business combinations under the acquisition method of accounting. Under this method, the assets acquired and liabilities assumed were recorded at their respective fair values as of the acquisition date in our consolidated financial statements. The determination of estimated fair value required management to make significant estimates and assumptions. The excess of the purchase price over the fair value of the acquired net assets, where applicable, has been recorded as goodwill. The results of operations of these acquisitions are included in our consolidated financial statements from the dates of acquisition.

In addition to the acquisitions of businesses, we also acquired assets in development in 2017, 2016, and 2015 which are further discussed in this note below in Asset Acquisitions. Upon acquisition, the acquired IPR&D charges related to these products were immediately expensed because the products had no alternative future use. For the years ended December 31, 2017, 2016, and 2015, we recorded acquired IPR&D charges of $1.11 billion, $30.0 million, and $535.0 million, respectively. The 2015 charges were associated with the transactions discussed below in Asset Acquisitions and the upfront fee of $200.0 million related to tanezumab. See Note 4 for additional information related to the tanezumab arrangement.

Acquisitions of Businesses

Boehringer Ingelheim Vetmedica, Inc. Vaccine Portfolio Acquisition

Overview of Transaction

On January 3, 2017, we acquired BIVIVP in an all-cash transaction for $882.1 million. Under the terms of the agreement, we acquired a manufacturing and research and development site, a U.S. vaccine portfolio including vaccines used for the treatment of bordetella, Lyme disease, rabies, and parvovirus, among others.

Assets Acquired and Liabilities Assumed

The following table summarizes the amounts recognized for assets acquired and liabilities assumed as of the acquisition date:



Estimated Fair Value at January 3, 2017
Inventories	$	108.6
Marketed products⁽¹⁾	297.0
Property and equipment	148.2
Other assets and liabilities - net	8.2
Total identifiable net assets	562.0
Goodwill⁽²⁾	320.1
Total consideration transferred - net of cash acquired	$	882.1

⁽¹⁾These intangible assets, which are being amortized to cost of sales on a straight-line basis over their estimated useful lives, were expected to have a weighted average useful life of 10 years.

⁽²⁾The goodwill recognized from this acquisition is attributable primarily to expected synergies from combining the operations of BIVIVP with our legacy animal health business, future unidentified projects and products, and the assembled workforce of BIVIVP. The goodwill associated with this acquisition will be deductible for tax purposes.

Our consolidated statement of operations for the year ended December 31, 2017, includes BIVIVP revenue of $216.7 million. BIVIVP has been integrated into our animal health products segment and, as a result of these integration efforts, certain parts of the animal health business were operating on a combined basis during this period and we could not distinguish the operations between BIVIVP and our legacy animal health products business.

Novartis AH Acquisition

Overview of Transaction

On January 1, 2015, we acquired from Novartis AG all of the shares of certain Novartis subsidiaries and the assets and liabilities of other Novartis subsidiaries that were exclusively related to the Novartis AH business in an all-cash transaction for a total purchase price of $5.28 billion, $5.41 billion of which was funded by cash held in escrow at December 31, 2014.

As a condition to the clearance of the transaction under the Hart-Scott-Rodino Antitrust Improvements Act, following the closing of the acquisition of Novartis AH, we divested certain animal health assets in the U.S. related to the Sentinel^® canine parasiticide franchise to Virbac Corporation for approximately $410.0 million.

The acquired Novartis AH business consisted of the research and development, manufacture, marketing, sale and distribution of veterinary products to prevent and treat diseases in pets, farm animals, and farmed fish. Under the terms of the agreement, we acquired manufacturing sites, research and development facilities, a global commercial infrastructure and portfolio of products, a pipeline of projects in development, and employees.

Assets Acquired and Liabilities Assumed

The following table summarizes the amounts recognized for assets acquired and liabilities assumed as of the acquisition date:



Estimated Fair Value at January 1, 2015
Inventories	$	380.2
Acquired in-process research and development	298.0
Marketed products⁽¹⁾	1,953.0
Property and equipment	199.9
Assets held for sale (primarily the U.S. Sentinel rights)	422.7
Accrued retirement benefits	(108.7		)
Deferred income taxes	(60.1		)
Other assets and liabilities - net	(73.0		)
Total identifiable net assets	3,012.0
Goodwill⁽²⁾	2,271.1
Total consideration transferred - net of cash acquired	$	5,283.1

⁽²⁾The goodwill recognized from this acquisition is attributable primarily to expected synergies from combining the operations of Novartis AH with our legacy animal health business, future unidentified projects and products, and the assembled workforce of Novartis AH. Approximately $1.0 billion of the goodwill associated with this acquisition is deductible for tax purposes.

Asset Acquisitions

The following table and narrative summarizes our asset acquisitions during 2017, 2016, and 2015.



Counterparty	Compound(s) or Therapy	Acquisition Month	Phase of Development⁽¹⁾	Acquired IPR&D Expense
CoLucid Pharmaceuticals, Inc. (CoLucid)	Oral therapy for the acute treatment of migraine - lasmiditan	March 2017	Phase III	$	857.6
KeyBioscience AG (KeyBioscience)	Multiple molecules for treatment of metabolic disorders	July 2017	Phase II	55.0
Nektar Therapeutics (Nektar)	Immunological therapy - NKTR-358	August 2017	Phase I	150.0
CureVac AG (CureVac)	Cancer vaccines	November 2017	Pre-clinical	50.0

AstraZeneca	Antibody selective for amyloid-beta 42 (Aβ42) - MEDI1814	December 2016	Phase I	30.0

Innovent Biologics, Inc. (Innovent)	Monoclonal antibody targeting protein CD-20 Immuno-oncology molecule cMet monoclonal antibody	March 2015	Pre-clinical⁽²⁾	56.0
Hanmi Pharmaceutical Co., Ltd. (Hanmi)	BTK Inhibitor - HM71224	April 2015	Phase I	50.0
BioNTech AG (BioNTech)	Cancer immunotherapies	May 2015	Pre-clinical	30.0
Locemia Solutions	Intranasal glucagon	October 2015	Phase III	149.0
Undisclosed	Technology collaboration	December 2015	N/A	25.0
Halozyme Therapeutics, Inc. (Halozyme)	Recombinant human hyaluronidase enzyme - rHuPH20	December 2015	N/A	25.0

⁽¹⁾The phase of development presented is as of the date of the arrangement and represents the phase of development of the most advanced asset acquired, where applicable.

⁽²⁾Prior to acquisition, Innovent's monoclonal antibody targeting protein CD-20 had received investigational new drug approval in China to begin Phase I development.

In connection with the arrangements described herein, our partners may be entitled to future royalties and/or commercial milestones based on sales should these products be approved for commercialization and/or milestones based on the successful progress of the compounds through the development process.

We acquired lasmiditan by acquiring CoLucid. Under the terms of the agreement, we acquired all shares of CoLucid for a cash purchase price of $831.8 million, net of cash acquired, plus net accrued liabilities assumed of $25.8 million. Substantially all of the value of CoLucid was related to lasmiditan, its only significant asset. The acquired IPR&D expense is not tax deductible.

Our collaboration agreement with KeyBioscience provides us with access to KeyBioscience's Dual Amylin Calcitonin Receptor Agonists (DACRAs), a potential new class of treatments for metabolic disorders such as type 2 diabetes, along with multiple molecules. Prior to entering into the agreement, KeyBioscience had initiated Phase II development of the lead molecule. The other assets included in the collaboration range from pre-clinical to Phase I development. Under the terms of the agreement, we receive worldwide rights to develop and commercialize these molecules.

Our collaboration with Nektar is to co-develop Nektar's compound which has the potential to treat a number of autoimmune and other chronic inflammatory conditions. Under the terms of the agreement, we are responsible for all costs of global commercialization. Nektar will have an option to co-promote in the U.S. under certain conditions.

Our global immuno-oncology collaboration with CureVac is to develop and commercialize up to five potential cancer vaccine products based on CureVac's proprietary RNActive^®technology.

Our global collaboration agreement with AstraZeneca is to co-develop AstraZeneca's MEDI1814 compound being investigated for the treatment of Alzheimer's disease.

Our collaboration agreement with Innovent is to develop and commercialize a portfolio of cancer treatments. In China, we will be responsible for the commercialization efforts, while Innovent will lead the development and manufacturing efforts. Innovent also has co-promotion rights in China. We will be responsible for development, manufacturing, and commercialization efforts of Innovent's pre-clinical immuno-oncology molecules outside of China. Separate from the collaboration, we will continue the development of our cMet monoclonal antibody gene outside of China.

Our collaboration agreement with Hanmi is to develop and commercialize Hanmi's compound being investigated for the treatment of autoimmune and other diseases. We have rights to the molecule for all indications on a worldwide basis excluding Korea. We will be responsible for leading development, regulatory, manufacturing, and commercial efforts in our territories.

Our research collaboration with BioNTech is to discover novel cancer immunotherapies.

Our global collaboration and license agreement with Halozyme is to develop and commercialize products combining our proprietary compounds with Halozyme's ENHANZE^™ platform to aid in the dispersion and absorption of other injected therapeutic drugs.

Collaborations

12 Months Ended

Dec. 31, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Collaborations

Collaborations and Other Arrangements

We often enter into collaborative and other similar arrangements to develop and commercialize drug candidates. Collaborative activities may include research and development, marketing and selling (including promotional activities and physician detailing), manufacturing, and distribution. These arrangements often require milestone and royalty or profit-share payments, contingent upon the occurrence of certain future events linked to the success of the asset in development, as well as expense reimbursements or payments to the collaboration partner. Elements within a collaboration are separated into individual units of accounting if they have standalone value from other elements within the arrangement. In these situations, the arrangement consideration is allocated to the elements on a relative selling price basis. Revenue related to products we sell pursuant to these arrangements are included in net product revenue, while other sources of revenue (e.g., royalties and profit sharing due from our partner) are included in collaboration and other revenue.

The following table summarizes our collaboration and other revenue, which is included in revenue in the consolidated statements of operations:



	2017		2016		2015
Collaboration and other revenue	$	1,199.9	$	833.7	$	808.1

Operating expenses for costs incurred pursuant to these arrangements are reported in their respective expense line item, net of any payments due to or reimbursements due from our collaboration partners, with such reimbursements being recognized at the time the party becomes obligated to pay. Each collaboration is unique in nature, and our more significant arrangements are discussed below.

Boehringer Ingelheim Diabetes Collaboration

We and Boehringer Ingelheim have a global agreement to jointly develop and commercialize a portfolio of diabetes compounds. Currently, included in the collaboration are Boehringer Ingelheim’s oral diabetes products: Trajenta^®, Jentadueto^®, Jardiance^®, Glyxambi^®, and Synjardy^®, as well as our basal insulin: Basaglar^®.

The table below summarizes significant regulatory and commercialization events and milestones (deferred) capitalized for the compounds included in this collaboration:



Product Family	Year Launched			Milestones (Deferred) Capitalized⁽¹⁾
Product Family	U.S.	Europe	Japan	Year	Amount
Trajenta⁽²⁾	2011	2011	2011	Cumulative⁽⁴⁾- all prior to 2015	$	446.4
Jardiance⁽³⁾	2014	2014	2015	Cumulative⁽⁴⁾ - all prior to 2015	299.5
Basaglar	2016	2015	2015	2017	—
				2016	(187.5		)
				2015	—
				Cumulative⁽⁴⁾	(250.0		)

⁽¹⁾In connection with the regulatory approvals of Basaglar in the U.S., Europe, and Japan, milestone payments received were recorded as deferred revenue and are being amortized through the term of the collaboration (2029) to collaboration and other revenue. In connection with the regulatory approvals of Trajenta and Jardiance, milestone payments made were capitalized as intangible assets and are being amortized to cost of sales.

⁽²⁾Jentadueto is included in the Trajenta family of product results.

⁽³⁾Glyxambi and Synjardyare included in the Jardiance family of product results.

⁽⁴⁾The cumulative amount represents the total initial amounts that were (deferred) or capitalized from the start of this collaboration through the end of the reporting period.

In the most significant markets, we and Boehringer Ingelheim share equally the ongoing development costs, commercialization costs, and agreed upon gross margin for any product resulting from the collaboration. We record our portion of the gross margin associated with Boehringer Ingelheim's compounds as collaboration and other revenue. We record our sales of Basaglar to third parties as net product revenue with the payments made to Boehringer Ingelheim for their portion of the gross margin recorded as cost of sales. For all compounds under this collaboration, we record our portion of the development and commercialization costs as research and development expense and marketing, selling, and administrative expense, respectively. Each company is entitled to potential performance payments depending on the sales of the molecules it contributes to the collaboration. These performance payments result in the owner of the molecule retaining a greater share of the agreed upon gross margin of that product. Subject to achieving these thresholds, in a given period, our reported revenue for Trajenta and Jardiance may be reduced by any performance payments we make related to these products. Similarly, performance payments we may receive related to Basaglar effectively reduce Boehringer Ingelheim's share of the gross margin, which reduces our cost of sales.

The following table summarizes our collaboration and other revenue recognized with respect to the Trajenta and Jardiance families of products and net product revenue recognized with respect to Basaglar:



	2017		2016		2015
Trajenta	$	537.9	$	436.6	$	356.8
Jardiance	447.5		201.9		60.2
Basaglar	432.1		86.1		11.1

Erbitux

We have several collaborations with respect to Erbitux. The most significant collaborations are or, where applicable, were in Japan, and prior to the transfer of commercialization rights in the fourth quarter of 2015, North America (Bristol-Myers Squibb Company); and worldwide except North America (Merck KGaA). Certain rights to Erbitux outside North America will remain with Merck KGaA (Merck) upon expiration of that agreement.

The following table summarizes our revenue recognized with respect to Erbitux:



	2017		2016		2015
Net product revenue - BMS	$	—	$	—	$	23.3
Net product revenue - third party	548.2		587.0		152.3
Collaboration and other revenue	97.7		100.0		309.4
Revenue	$	645.9	$	687.0	$	485.0

Bristol-Myers Squibb Company

Pursuant to commercial agreements with BMS, we had been co-developing Erbitux in North America exclusively with BMS. On October 1, 2015, BMS transferred their commercialization rights to us with respect to Erbitux in North America pursuant to a modification of our existing arrangement, and we began selling Erbitux at that time. This modification did not affect our rights with respect to Erbitux in other jurisdictions. In connection with the modification of terms, we provide consideration to BMS based upon a tiered percentage of net sales of Erbitux in North America estimated to average 38 percent through September 2018. The transfer of the commercialization rights was accounted for as an acquisition of a business. The consideration to be paid to BMS was accounted for as contingent consideration liability. See Note 7 for discussion regarding the estimation of this liability.

The following table summarizes the amounts recognized for assets acquired and liabilities assumed as of the acquisition date:



Estimated Fair Value at October 1, 2015
Marketed products⁽¹⁾	$	602.1
Deferred tax asset	232.2
Deferred tax liability	(228.2		)
Other assets and liabilities - net	57.2
Total identifiable net assets	$	663.3
Total consideration - contingent consideration liability⁽²⁾	$	(663.3	)

⁽¹⁾These intangible assets are being amortized to cost of sales using the straight-line method through the co-development period in North America as set forth in the original agreement, which was scheduled to expire in September 2018.

⁽²⁾See Note 7 for discussion on the estimation of the contingent consideration liability.

Including the Erbitux business as if we had acquired it on January 1, 2015, our combined consolidated unaudited pro forma revenue and total Erbitux revenue would have been approximately $20.2 billion and $735 million, respectively, for the year ended December 31, 2015. This unaudited pro forma financial information adjusts the historical consolidated revenue to give effect to pro forma events that are directly attributable to the acquisition. There would have been no material change to our historical consolidated net income. The unaudited pro forma financial information is not necessarily indicative of what our consolidated revenues would have been had we completed the acquisition on January 1, 2015. In addition, the unaudited pro forma financial information does not attempt to project the future results of operations of our combined company.

Merck KGaA

A development and license agreement grants Merck exclusive rights to market Erbitux outside of North America until December 2018. A separate agreement grants co-exclusive rights among Merck, BMS, and us in Japan and expires in 2032. This agreement was amended in 2015 to grant Merck exclusive commercialization rights in Japan but did not result in any changes to our rights.

Merck manufactures Erbitux for supply in its territory as well as for Japan. We receive a royalty on the sales of Erbitux outside of North America, which is included in collaboration and other revenue as the underlying sales occur. Royalties due to third parties are recorded as a reduction of collaboration and other revenue, net of any royalty reimbursements due from third parties.

Effient^®

We are in a collaborative arrangement with Daiichi Sankyo Co., Ltd. (Daiichi Sankyo) to develop, market, and promote Effient. Marketing rights for major territories are shown below. We and Daiichi Sankyo each have exclusive marketing rights in certain other territories.



Territory	Marketing Rights	Selling Party
U.S.	Co-promotion	Lilly
Major European markets	Co-promotion	Pre-January 1, 2016, Lilly Post-January 1, 2016, Daiichi Sankyo
Japan	Exclusive	Daiichi Sankyo

Beginning January 1, 2016, while major European markets continue to be a co-promotion territory under the terms of our arrangement, Daiichi Sankyo exclusively promotes Effient in these markets. The economic results for the major European markets continue to be shared in the same proportion as they were previously.

The parties share approximately 50/50 in the profits, as well as in the costs of development and marketing in the co-promotion territories. A third party manufactures bulk product, and we continue to produce the finished product for our exclusive and co-promotion territories, including the major European markets.

We record net product revenue in our exclusive and co-promotion territories where we are the selling party. Profit-share payments due to Daiichi Sankyo for co-promotion countries where we are the selling party are recorded as marketing, selling, and administrative expenses. Beginning January 1, 2016, any profit-share payments due to us from Daiichi Sankyo for the major European markets are recorded as collaboration and other revenue. We also record our share of the expenses in these co-promotion territories as marketing, selling, and administrative expenses. In our exclusive territories, we pay Daiichi Sankyo a royalty specific to these territories. All royalties due to Daiichi Sankyo and the third-party manufacturer are recorded in cost of sales. Generic versions of Effient launched in the U.S. in the third quarter of 2017.

The following table summarizes our revenue recognized with respect to Effient:



	2017		2016		2015
Revenue	$	388.9	$	535.2	$	523.0

Olumiant^®

We have a worldwide license and collaboration agreement with Incyte Corporation (Incyte) which provides us the development and commercialization rights to its Janus tyrosine kinase inhibitor compound, now known as baricitinib (trade name Olumiant), and certain follow-on compounds, for the treatment of inflammatory and autoimmune diseases. Incyte has the right to receive tiered, double-digit royalty payments on future global sales with rates ranging up to 20 percent if the product is successfully commercialized. The agreement provides Incyte with options to co-develop these compounds on an indication-by-indication basis by funding 30 percent of the associated development costs from the initiation of a Phase IIb trial through regulatory approval in exchange for increased tiered royalties ranging up to percentages in the high twenties. Incyte exercised its option to co-develop Olumiant in rheumatoid arthritis in 2010 and psoriatic arthritis and atopic dermatitis in 2017. The agreement calls for payments by us to Incyte associated with certain development, success-based regulatory, and sales-based milestones. In 2016, we incurred milestone-related expenses of $55.0 million in connection with regulatory submissions in the U.S. and Europe, which were recorded as research and development expense. In 2017, we capitalized as intangible assets $65.0 million and $15.0 million of milestones in connection with regulatory approvals in Europe and Japan, respectively, which are being amortized to cost of sales over the term of the collaboration. As a result of the molecule moving into Phase III testing for the atopic dermatitis indication, we incurred a $30.0 million developmental milestone, which was recorded as research and development expense in the fourth quarter of 2017. After receipt of this milestone payment, Incyte will be eligible to receive up to $250.0 million of additional payments from us contingent upon certain development and success-based regulatory milestones, of which $100.0 million relates to the U.S. regulatory decision for a first indication. Incyte is also eligible to receive up to $150.0 million of potential sales-based milestones.

Tanezumab

We have a collaboration agreement with Pfizer Inc. (Pfizer) to jointly develop and globally commercialize tanezumab for the treatment of osteoarthritis pain, chronic low back pain and cancer pain. Under the agreement, the companies share equally the ongoing development costs and, if successful, in gross margins and certain commercialization expenses. Following the U.S. Food and Drug Administration's (FDA's) decision in March 2015 to lift the partial clinical hold on tanezumab, certain Phase III trials resumed in July 2015. Upon the FDA's lifting of the partial clinical hold and the decision to continue the collaboration with Pfizer, we paid an upfront fee of $200.0 million, which was expensed as acquired IPR&D. As of December 31, 2017, Pfizer is eligible to receive up to $350.0 million in success-based regulatory milestones and up to $1.23 billion in a series of sales-based milestones, contingent upon the commercial success of tanezumab.

Lanabecestat

We have a collaboration agreement with AstraZeneca for the worldwide co-development and co-commercialization of AstraZeneca’s lanabecestat, an oral beta-secretase cleaving enzyme (BACE) inhibitor being investigated for the potential treatment of Alzheimer’s disease. We are responsible for leading development efforts, while AstraZeneca will be responsible for manufacturing efforts. If successful, both parties will take joint responsibility for commercialization. Under the agreement, both parties share equally in the ongoing development costs and, if successful, in gross margins and certain other costs associated with commercialization of the molecule. As a result of the molecule moving into Phase III testing, we incurred a $100.0 million developmental milestone, which was recorded as research and development expense in 2016. In 2017, as a result of the outcome of an interim analysis, we incurred a $50.0 million developmental milestone, which was recorded as research and development expense. As of December 31, 2017, AstraZeneca is eligible to receive up to $300.0 million of additional payments from us contingent upon the achievement of certain development and success-based regulatory milestones.

Asset Impairments, Restructuring, and Other Special Charges

12 Months Ended

Dec. 31, 2017

Restructuring and Related Activities [Abstract]

Asset Impairments, Restructuring, And Other Special Charges

Asset Impairment, Restructuring, and Other Special Charges

The components of the charges included in asset impairment, restructuring, and other special charges in our consolidated statements of operations are described below.



	2017		2016			2015
Severance:
Human pharmaceutical products	$	601.0	$	85.9		$	81.5
Animal health products	96.4		40.8			59.5
Total severance	697.4		126.7			141.0
Pension and post-retirement medical charges associated with U.S. early retirement program (see Note 14):
Human pharmaceutical products	446.7		—			—
Animal health products	67.0		—			—
Total pension and post-retirement medical charges associated with U.S. early retirement program	513.7		—			—
Asset impairment (gains from facility sales) and other special charges:
Human pharmaceutical products	81.7		(13.0		)	24.6
Animal health products	380.8		268.8			202.1
Total asset impairment and other special charges	462.5		255.8			226.7
Total asset impairment, restructuring, and other special charges	$	1,673.6	$	382.5		$	367.7

Severance costs recognized during the years ended December 31, 2017, 2016 and 2015 were incurred as a result of actions taken to reduce our cost structure, including severance costs recognized in 2017 associated with the U.S. voluntary early retirement program, as well as the integration of Novartis AH. During 2017, severance costs recognized in the U.S. and outside the U.S. were $412.5 million and $284.9 million, respectively. In relation to these charges, we paid approximately $300 million of the U.S. charges through January 31, 2018, and paid approximately half of the charges incurred outside the U.S. in 2017. Substantially all of the severance costs incurred during the year ended December 31, 2017 are expected to be paid in the next 12 months.

Asset impairment and other special charges related to animal health products recognized during the year ended December 31, 2017 resulted primarily from asset impairments related to lower projected revenue for Posilac^® (rbST). The assets associated with Posilac were written down to their fair values, which were determined based upon a discounted cash flow valuation. Impairment charges were recorded for the associated fixed assets and intangible asset of $151.5 million and $50.0 million, respectively. We are exploring strategic options for Posilac, including seeking a buyer for the molecule and its Augusta, Georgia manufacturing site. The remaining book value of assets associated with Posilac subsequent to the impairment charge is not material. In addition, we incurred approximately $43.4 million of costs associated with the temporary shut down of our Puerto Rico facility following Hurricane Maria. The remaining asset impairment and other special charges recognized in 2017 were primarily related to integration costs and asset impairments due to product rationalizations and site closures resulting from our acquisition and integration of Novartis AH (refer to Note 8 for further detail relating to intangible asset impairments).

Asset impairment and other special charges recognized during the years ended December 31, 2016 and 2015 resulted primarily from integration costs and asset impairments due to product rationalization and site closures resulting from our acquisition and integration of Novartis AH, including the closure of a manufacturing facility in Ireland in 2016.

Inventories

12 Months Ended

Dec. 31, 2017

Inventory Disclosure [Abstract]

Inventories

We state all inventories at the lower of cost or market. We use the last-in, first-out (LIFO) method for the majority of our inventories located in the continental U.S. Other inventories are valued by the first-in, first-out (FIFO) method. FIFO cost approximates current replacement cost.

Inventories at December 31 consisted of the following:



	2017		2016
Finished products	$	1,211.4	$	987.3
Work in process	2,697.7		2,117.2
Raw materials and supplies	488.8		435.3
Total (approximates replacement cost)	4,397.9		3,539.8
Increase to LIFO cost	60.4		22.1
Inventories	$	4,458.3	$	3,561.9

Inventories valued under the LIFO method comprised $1.56 billion and $1.43 billion of total inventories at December 31, 2017 and 2016, respectively.

Financial Instruments

12 Months Ended

Dec. 31, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Financial Instruments

Financial instruments that potentially subject us to credit risk consist principally of trade receivables and interest-bearing investments. Wholesale distributors of life-science products account for a substantial portion of our trade receivables; collateral is generally not required. The risk associated with this concentration is mitigated by our ongoing credit-review procedures and insurance. A large portion of our cash is held by a few major financial institutions. We monitor our exposures with these institutions and do not expect any of these institutions to fail to meet their obligations. Major financial institutions represent the largest component of our investments in corporate debt securities. In accordance with documented corporate risk-management policies, we monitor the amount of credit exposure to any one financial institution or corporate issuer. We are exposed to credit-related losses in the event of nonperformance by counterparties to risk-management instruments but do not expect any counterparties to fail to meet their obligations given their high credit ratings.

We consider all highly liquid investments with a maturity of three months or less from the date of purchase to be cash equivalents. The cost of these investments approximates fair value.

Substantially all of our investments in debt and marketable equity securities are classified as available-for-sale. Investment securities with maturity dates of less than one year from the date of the balance sheet are classified as short-term. Available-for-sale securities are carried at fair value with the unrealized gains and losses, net of tax, reported in other comprehensive income (loss). The credit portion of unrealized losses on our debt securities considered to be other-than-temporary is recognized in earnings. The remaining portion of the other-than-temporary impairment on our debt securities is then recorded, net of tax, in other comprehensive income (loss). The entire amount of other-than-temporary impairment on our equity securities is recognized in earnings. We do not evaluate cost-method investments for impairment unless there is an indicator of impairment. We review these investments for indicators of impairment on a regular basis.

Investments in companies over which we have significant influence but not a controlling interest are accounted for using the equity method with our share of earnings or losses reported in other–net, (income) expense. We own no investments that are considered to be trading securities.

Our derivative activities are initiated within the guidelines of documented corporate risk-management policies and offset losses and gains on the assets, liabilities, and transactions being hedged. Management reviews the correlation and effectiveness of our derivatives on a quarterly basis.

For derivative instruments that are designated and qualify as fair value hedges, the derivative instrument is marked to market with gains and losses recognized currently in income to offset the respective losses and gains recognized on the underlying exposure. For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of gains and losses is reported as a component of AOCL and reclassified into earnings in the same period the hedged transaction affects earnings. For derivative and non-derivative instruments that are designated and qualify as net investment hedges, the effective portion of foreign currency translation gains or losses due to spot rate fluctuations are reported as a component of AOCL. Hedge ineffectiveness is immediately recognized in earnings. Derivative contracts that are not designated as hedging instruments are recorded at fair value with the gain or loss recognized in current earnings during the period of change.

We may enter into foreign currency forward or option contracts to reduce the effect of fluctuating currency exchange rates (principally the euro, British pound, and the Japanese yen). Foreign currency derivatives used for hedging are put in place using the same or like currencies and duration as the underlying exposures. Forward and option contracts are principally used to manage exposures arising from subsidiary trade and loan payables and receivables denominated in foreign currencies. These contracts are recorded at fair value with the gain or loss recognized in other–net, (income) expense. We may enter into foreign currency forward and option contracts and currency swaps as fair value hedges of firm commitments. Forward contracts generally have maturities not exceeding 12 months. At December 31, 2017, we had outstanding foreign currency forward commitments to purchase 2.92 billion U.S. dollars and sell 2.46 billion euro; commitments to purchase 2.83 billion euro and sell 3.36 billion U.S. dollars; commitments to purchase 355.6 million British pounds and sell 476.1 million U.S. dollars; commitments to purchase 257.8 million U.S. dollars and sell 192.6 million British pounds, commitments to purchase 393.1 million U.S. dollars and sell 44.41 billion Japanese yen, and commitments to purchase 147.8 million Swiss francs and sell 150.2 million U.S. dollars, which will all settle within 30 days.

Foreign currency exchange risk is also managed through the use of foreign currency debt and cross-currency interest rate swaps. Our foreign currency-denominated notes had carrying amounts of $3.70 billion and $3.34 billion as of December 31, 2017 and 2016, respectively, have been designated as, and are effective as, economic hedges of net investments in certain of our euro-denominated and Swiss franc-denominated foreign operations. Our cross-currency interest rate swaps that convert a portion of our U.S. dollar-denominated floating rate debt to euro-denominated floating rate debt have also been designated as, and are effective as, economic hedges of net investments in certain of our euro-denominated foreign operations.

In the normal course of business, our operations are exposed to fluctuations in interest rates which can vary the costs of financing, investing, and operating. We address a portion of these risks through a controlled program of risk management that includes the use of derivative financial instruments. The objective of controlling these risks is to limit the impact of fluctuations in interest rates on earnings. Our primary interest-rate risk exposure results from changes in short-term U.S. dollar interest rates. In an effort to manage interest-rate exposures, we strive to achieve an acceptable balance between fixed- and floating-rate debt and investment positions and may enter into interest rate swaps or collars to help maintain that balance.

Interest rate swaps or collars that convert our fixed-rate debt to a floating rate are designated as fair value hedges of the underlying instruments. Interest rate swaps or collars that convert floating-rate debt to a fixed rate are designated as cash flow hedges. Interest expense on the debt is adjusted to include the payments made or received under the swap agreements. Cash proceeds from or payments to counterparties resulting from the termination of interest rate swaps are classified as operating activities in our consolidated statements of cash flows. At December 31, 2017, substantially all of our total long-term debt is at a fixed rate. We have converted approximately 28 percent of our long-term fixed-rate notes to floating rates through the use of interest rate swaps.

We may enter into forward contracts and designate them as cash flow hedges to limit the potential volatility of earnings and cash flow associated with forecasted sales of available-for-sale securities.

We also may enter into forward-starting interest rate swaps, which we designate as cash flow hedges, as part of any anticipated future debt issuances in order to reduce the risk of cash flow volatility from future changes in interest rates. Upon completion of a debt issuance and termination of the swap, the change in fair value of these instruments is recorded as part of other comprehensive income (loss) and is amortized to interest expense over the life of the underlying debt.

The Effect of Risk Management Instruments on the Consolidated Statements of Operations

The following effects of risk-management instruments were recognized in other–net, (income) expense:



	2017			2016			2015
Fair value hedges:
Effect from hedged fixed-rate debt	$	(14.1	)	$	(30.8	)	$	(11.9	)
Effect from interest rate contracts	14.1			30.8			11.9
Cash flow hedges:
Effective portion of losses on interest rate contracts reclassified from accumulated other comprehensive loss	14.8			15.0			13.7
Net (gains) losses on foreign currency exchange contracts not designated as hedging instruments	97.9			78.8			(28.2		)

During the years ended December 31, 2017, 2016, and 2015, net losses related to ineffectiveness, as well as net losses related to the portion of our risk-management hedging instruments, fair value hedges, and cash flow hedges that were excluded from the assessment of effectiveness, were not material.

The Effect of Risk-Management Instruments on Other Comprehensive Income (Loss)

The effective portion of risk-management instruments that was recognized in other comprehensive income (loss) is as follows:



	2017		2016		2015
Cash flow hedges:
Forward-starting interest rate swaps	13.0		(3.4	)	(56.7	)
Net investment hedges:
Foreign currency-denominated notes	(361.5	)	137.5		—
Cross-currency interest rate swaps	(126.6	)	32.5		—
Foreign currency exchange contracts	—		31.9		—

Fair Value Hedges

There were no material terminations of interest rate swaps in 2017 and 2016. During the year ended December 31, 2015, we terminated certain interest rate swaps designated as fair value hedges with an aggregate notional amount of $876.0 million. The termination of certain interest rate swaps in 2015 was in connection with the note purchase and redemption discussed in Note 10. As a result of the terminations, we received cash of $20.2 million, which represented the fair value of the interest rate swaps at the time of termination. The related fair value adjustment was recorded as an increase to the carrying value of the underlying notes and was included as a component of the debt extinguishment loss.

Cash Flow Hedges

Upon issuance of the underlying fixed-rate notes in March 2015, which are discussed in Note 10, we terminated forward-starting interest rate contracts in designated cash flow hedging instruments with an aggregate notional amount of $1.35 billion and paid $206.3 million in cash to the counterparties for settlement. The settlement amount represented the fair value of the forward-starting interest rate contracts at the time of termination and was recorded in other comprehensive income (loss).

During the next 12 months, we expect to reclassify $14.8 million of pretax net losses on cash flow hedges from AOCL to other–net, (income) expense.

Fair Value of Financial Instruments

The following tables summarize certain fair value information at December 31 for assets and liabilities measured at fair value on a recurring basis, as well as the carrying amount and amortized cost of certain other investments:



					Fair Value Measurements Using
Description	Carrying Amount		Cost⁽¹⁾		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value
December 31, 2017
Cash equivalents	$	4,763.9	$	4,763.9	$	4,712.4	$	51.5	$	—	$	4,763.9
Short-term investments:
U.S. government and agency securities	$	217.8	$	218.2	$	217.8	$	—	$	—	$	217.8
Corporate debt securities	1,182.3		1,183.2		—		1,182.3		—		1,182.3
Asset-backed securities	94.2		94.3		—		94.2		—		94.2
Other securities	3.6		3.6		—		3.6		—		3.6
Short-term investments	$	1,497.9
Noncurrent investments:
U.S. government and agency securities	$	360.0	$	365.0	$	360.0	$	—	$	—	$	360.0
Corporate debt securities	3,464.3		3,473.5		—		3,464.3		—		3,464.3
Mortgage-backed securities	202.4		204.2		—		202.4		—		202.4
Asset-backed securities	653.9		656.0		—		653.9		—		653.9
Other securities	132.1		66.4		—		—		132.1		132.1
Marketable equity securities	281.3		131.0		281.3		—		—		281.3
Cost and equity method investments⁽²⁾	584.8
Noncurrent investments	$	5,678.8

December 31, 2016
Cash equivalents	$	2,986.8	$	2,986.8	$	2,699.4	$	287.4	$	—	$	2,986.8
Short-term investments:
U.S. government and agency securities	$	232.5	$	232.6	$	232.5	$	—	$	—	$	232.5
Corporate debt securities	1,219.2		1,219.1		—		1,219.2		—		1,219.2
Asset-backed securities	4.3		4.3		—		4.3		—		4.3
Other securities	0.5		0.5		—		0.5		—		0.5
Short-term investments	$	1,456.5
Noncurrent investments:
U.S. government and agency securities	$	318.9	$	323.8	$	318.9	$	—	$	—	$	318.9
Corporate debt securities	3,062.2		3,074.3		—		3,062.2		—		3,062.2
Mortgage-backed securities	183.1		185.4		—		183.1		—		183.1
Asset-backed securities	502.7		503.5		—		502.7		—		502.7
Other securities	153.7		77.6		—		—		153.7		153.7
Marketable equity securities	418.2		91.9		418.2		—		—		418.2
Cost and equity method investments⁽²⁾	568.7
Noncurrent investments	$	5,207.5

⁽¹⁾For available-for-sale debt securities, amounts disclosed represent the securities' amortized cost.

⁽²⁾Fair value disclosures are not applicable for cost method and equity method investments.



				Fair Value Measurements Using
Description	Carrying Amount			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Fair Value
Short-term commercial paper borrowings
December 31, 2017	$	(2,696.8	)	$	—	$	(2,690.6	)	$	—	$	(2,690.6	)
December 31, 2016	(1,299.3		)	—		(1,299.3		)	—		(1,299.3		)

Long-term debt, including current portion
December 31, 2017	$	(10,950.3	)	$	—	$	(11,529.9	)	$	—	$	(11,529.9	)
December 31, 2016	(9,005.9		)	—		(9,419.1		)	—		(9,419.1		)



				Fair Value Measurements Using
Description	Carrying Amount			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Fair Value
December 31, 2017
Risk-management instruments
Interest rate contracts designated as fair value hedges:
Other receivables	$	0.8		$	—	$	0.8		$	—		$	0.8
Sundry	35.1			—		35.1			—			35.1
Other current liabilities	(0.2		)	—		(0.2		)	—			(0.2		)
Other noncurrent liabilities	(10.5		)	—		(10.5		)	—			(10.5		)
Cross-currency interest rate contracts designated as net investment hedges:
Other current liabilities	(33.4		)	—		(33.4		)	—			(33.4		)
Other noncurrent liabilities	(26.0		)	—		(26.0		)	—			(26.0		)
Foreign exchange contracts not designated as hedging instruments:
Other receivables	26.8			—		26.8			—			26.8
Other current liabilities	(36.0		)	—		(36.0		)	—			(36.0		)
Contingent consideration liabilities⁽¹⁾:
Other current liabilities	(208.0		)	—		—			(208.0		)	(208.0		)
Other noncurrent liabilities	(45.2		)	—		—			(45.2		)	(45.2		)

December 31, 2016
Risk-management instruments
Interest rate contracts designated as fair value hedges:
Other receivables	$	2.4		$	—	$	2.4		$	—		$	2.4
Sundry	37.0			—		37.0			—			37.0
Other noncurrent liabilities	(0.5		)	—		(0.5		)	—			(0.5		)
Cross-currency interest rate contracts designated as net investment hedges:
Sundry	31.4			—		31.4			—			31.4
Foreign exchange contracts not designated as hedging instruments:
Other receivables	31.8			—		31.8			—			31.8
Other current liabilities	(21.7		)	—		(21.7		)	—			(21.7		)
Contingent consideration liabilities⁽¹⁾:
Other current liabilities	(215.9		)	—		—			(215.9		)	(215.9		)
Other noncurrent liabilities	(242.6		)	—		—			(242.6		)	(242.6		)

⁽¹⁾Contingent consideration liabilities primarily relate to the Erbitux arrangement with BMS discussed in Note 4.

Risk-management instruments above are disclosed on a gross basis. There are various rights of setoff associated with certain of the risk-management instruments above that are subject to an enforceable master netting arrangement or similar agreements. Although various rights of setoff and master netting arrangements or similar agreements may exist with the individual counterparties to the risk-management instruments above, individually, these financial rights are not material.

We determine our Level 1 and Level 2 fair value measurements based on a market approach using quoted market values, significant other observable inputs for identical or comparable assets or liabilities, or discounted cash flow analyses. Level 3 fair value measurements for other investment securities are determined using unobservable inputs, including the investments' cost adjusted for impairments and price changes from orderly transactions. The fair values of cost and equity method investments are not readily available.

Contingent consideration liabilities primarily include contingent consideration related to Erbitux for which the fair value was estimated using a discounted cash flow analysis and Level 3 inputs, including projections representative of a market participant view for net sales in North America through September 2018 and an estimated discount rate. The amount to be paid is calculated as a tiered percentage of net sales (see Note 4) and will, therefore, vary directly with increases and decreases in net sales of Erbitux in North America. There is no cap on the amount that may be paid pursuant to this arrangement. The decrease in the fair value of the contingent consideration liabilities during the years ended December 31, 2017 and 2016 was due primarily to cash payments of $203.9 million and $231.0 million, respectively, related to Erbitux. The change in the fair value of the contingent consideration liabilities recognized in earnings during the years ended December 31, 2017, 2016, and 2015 due to changes in time value of money was not material.

The table below summarizes the contractual maturities of our investments in debt securities measured at fair value as of December 31, 2017:



	Maturities by Period
	Total		Less Than 1 Year		1-5 Years		6-10 Years		More Than 10 Years
Fair value of debt securities	$	6,174.9	$	1,494.3	$	4,200.8	$	199.0	$	280.8

A summary of the fair value of available-for-sale securities in an unrealized gain or loss position and the amount of unrealized gains and losses (pretax) in AOCL follows:



	2017		2016
Unrealized gross gains	$	184.7	$	352.6
Unrealized gross losses	47.5		34.1
Fair value of securities in an unrealized gain position	1,434.2		1,869.7
Fair value of securities in an unrealized loss position	4,692.8		3,262.3

We periodically assess our investment securities for other-than-temporary impairment losses. There were no other-than-temporary impairment losses recognized in 2017. Other-than-temporary impairment losses recognized during the year ended December 31, 2016 and December 31, 2015 totaled $53.0 million and $42.6 million, respectively. Other-than-temporary impairment losses recognized during these years related primarily to our cost and equity method investments.

For fixed-income securities, the amount of credit losses are determined by comparing the difference between the present value of future cash flows expected to be collected on these securities and the amortized cost. Factors considered in assessing credit losses include the position in the capital structure, vintage and amount of collateral, delinquency rates, current credit support, and geographic concentration.

For equity securities, factors considered in assessing other-than-temporary impairment losses include the length of time and the extent to which the fair value has been less than cost, the financial condition and near term prospects of the issuer, our intent and ability to retain the securities for a period of time sufficient to allow for recovery in fair value, and general market conditions and industry specific factors.

As of December 31, 2017, the securities in an unrealized loss position include primarily fixed-rate debt securities of varying maturities, which are sensitive to changes in the yield curve and other market conditions. Approximately 95 percent of the fixed-rate debt securities in a loss position are investment-grade debt securities. As of December 31, 2017, we do not intend to sell, and it is not more likely than not that we will be required to sell, the securities in a loss position before the market values recover or the underlying cash flows have been received, and there is no indication of default on interest or principal payments for any of our debt securities.

Activity related to our investment portfolio, substantially all of which related to available-for-sale securities, was as follows:



	2017		2016		2015
Proceeds from sales	$	5,769.3	$	3,240.5	$	4,733.3
Realized gross gains on sales	176.0		30.7		255.1
Realized gross losses on sales	5.8		14.6		10.3

Realized gains and losses on sales of investments are computed based upon specific identification of the initial cost adjusted for any other-than-temporary declines in fair value that were recorded in earnings.

Accounts Receivable Factoring Arrangements

We have entered into accounts receivable factoring agreements with financial institutions to sell certain of our non-U.S. accounts receivable. These transactions are accounted for as sales and result in a reduction in accounts receivable because the agreements transfer effective control over and risk related to the receivables to the buyers. Our factoring agreements do not allow for recourse in the event of uncollectibility, and we do not retain any interest in the underlying accounts receivable once sold. We derecognized $723.2 million and $661.6 million of accounts receivable as of December 31, 2017 and 2016, respectively, under these factoring arrangements. The cost of factoring such accounts receivable on our consolidated results of operations for the years ended December 31, 2017, 2016, and 2015 was not material.

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangibles

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure

Goodwill and Other Intangibles

Goodwill

Goodwill by segment at December 31 was as follows:



	2017		2016
Human pharmaceutical products	$	1,366.8	$	1,366.4
Animal health	3,003.3		2,606.3
Total goodwill	$	4,370.1	$	3,972.7

Goodwill results from excess consideration in a business combination over the fair value of identifiable net assets acquired. Goodwill is not amortized but is reviewed for impairment at least annually and when impairment indicators are present. When required, a comparison of the fair value of the reporting unit to its carrying amount including goodwill is used to determine the amount of any impairment. See Note 3 for discussion of goodwill resulting from the acquisition of BIVIP. The remaining change in goodwill for the animal health segment is the result of foreign exchange translation adjustments.

No impairments occurred with respect to the carrying value of goodwill for the years ended December 31, 2017, 2016, and 2015.

Other Intangibles

The components of intangible assets other than goodwill at December 31 were as follows:



	2017							2016
Description	Carrying Amount, Gross		Accumulated Amortization			Carrying Amount, Net		Carrying Amount, Gross		Accumulated Amortization			Carrying Amount, Net
Finite-lived intangible assets:
Marketed products	$	7,682.0	$	(3,851.1	)	$	3,830.9	$	7,400.2	$	(3,301.4	)	$	4,098.8
Other	171.2		(70.1		)	101.1		150.7		(71.8		)	78.9
Total finite-lived intangible assets	7,853.2		(3,921.2		)	3,932.0		7,550.9		(3,373.2		)	4,177.7
Indefinite-lived intangible assets:
Acquired in-process research and development	97.2		—			97.2		180.2		—			180.2
Other intangibles	$	7,950.4	$	(3,921.2	)	$	4,029.2	$	7,731.1	$	(3,373.2	)	$	4,357.9

Marketed products consist of the amortized cost of the rights to assets acquired in business combinations and approved for marketing in a significant global jurisdiction (U.S., Europe, and Japan) and capitalized milestone payments. For transactions other than a business combination, we capitalize milestone payments incurred at or after the product has obtained regulatory approval for marketing.

Other finite-lived intangibles consist primarily of the amortized cost of licensed platform technologies that have alternative future uses in research and development, manufacturing technologies, and customer relationships from business combinations.

Acquired IPR&D consists of the related costs capitalized, adjusted for subsequent impairments, if any. The costs of acquired IPR&D projects acquired directly in a transaction other than a business combination are capitalized if the projects have an alternative future use; otherwise, they are expensed immediately. The fair values of acquired IPR&D projects acquired in business combinations are capitalized as other intangible assets.

Several methods may be used to determine the estimated fair value of other intangibles acquired in a business combination. We utilize the “income method,” which is a Level 3 fair value measurement and applies a probability weighting that considers the risk of development and commercialization to the estimated future net cash flows that are derived from projected revenues and estimated costs. These projections are based on factors such as relevant market size, patent protection, historical pricing of similar products, and expected industry trends. The estimated future net cash flows are then discounted to the present value using an appropriate discount rate. This analysis is performed for each asset independently. The acquired IPR&D assets are treated as indefinite-lived intangible assets until completion or abandonment of the projects, at which time the assets are tested for impairment and amortized over the remaining useful life or written off, as appropriate.

See Note 3 for further discussion of intangible assets acquired in the acquisition of BIVIP and Note 4 for additional discussion of recent capitalized milestone payments.

Other indefinite-lived intangible assets are reviewed for impairment at least annually and when impairment indicators are present. Finite-lived intangible assets are reviewed for impairment when an indicator of impairment is present. When required, a comparison of fair value to the carrying amount of assets is performed to determine the amount of any impairment. When determining the fair value of indefinite-lived acquired IPR&D as well as the fair value of finite-lived intangible assets for impairment testing purposes, we utilize the "income method" discussed above. During the year, we had animal health intangible impairment charges of $135.5 million (comprised of $97.5 million impairment of finite-lived intangible assets and $38.0 million impairment of indefinite-lived intangible assets) charged to asset impairment, restructuring and other special charges on the consolidated statements of operations. These impairments were related to competitive pressures for certain companion animal products resulting in a reduction of revenue, as well as lower projected revenue for Posilac (rbST). No material impairments occurred with respect to the carrying value of other intangible assets for the years ended December 31, 2016 and 2015.

Intangible assets with finite lives are capitalized and are amortized over their estimated useful lives, ranging from 3 to 20 years. As of December 31, 2017, the remaining weighted-average amortization period for finite-lived intangible assets is approximately 12 years.

Amortization expense related to finite-lived intangible assets was as follows:



	2017		2016		2015
Amortization expense	$	683.4	$	687.9	$	631.8

The estimated amortization expense for each of the next five years associated with our finite-lived intangible assets as of December 31, 2017 is as follows:



	2018		2019		2020		2021		2022
Estimated amortization expense	$	558.2	$	352.2	$	350.7	$	349.0	$	336.2

Amortization expense is included in either cost of sales, marketing, selling, and administrative or research and development depending on the nature of the intangible asset being amortized.

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

Property, Plant and Equipment [Abstract]

Property and Equipment (Notes)

12 Months Ended

Dec. 31, 2017

Property, Plant and Equipment Disclosure

Property and Equipment

Property and equipment is stated on the basis of cost. Provisions for depreciation of buildings and equipment are computed generally by the straight-line method at rates based on their estimated useful lives (12 to 50 years for buildings and 3 to 25 years for equipment). We review the carrying value of long-lived assets for potential impairment on a periodic basis and whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. Impairment is determined by comparing projected undiscounted cash flows to be generated by the asset to its carrying value. If an impairment is identified, a loss is recorded equal to the excess of the asset’s net book value over its fair value, and the cost basis is adjusted.

At December 31, property and equipment consisted of the following:



	2017			2016
Land	$	192.7		$	197.6
Buildings	7,425.6			6,917.8
Equipment	8,689.0			7,864.7
Construction in progress	1,783.8			1,797.5
	18,091.1			16,777.6
Less accumulated depreciation	(9,264.6		)	(8,525.0		)
Property and equipment, net	$	8,826.5		$	8,252.6

Depreciation expense related to property and equipment and rental expense for all leases, including contingent rentals (not material), was as follows:



	2017		2016		2015
Depreciation expense	$	763.1	$	716.2	$	717.6
Rental expense	224.5		221.0		225.7

The future minimum rental commitments under non-cancelable operating leases are as follows:



	2018		2019		2020		2021		2022		After 2022
Lease commitments	$	130.8	$	119.2	$	105.7	$	94.7	$	77.1	$	245.7

Capitalized interest costs were not material for the years ended December 31, 2017, 2016, and 2015.

Assets under capital leases included in property and equipment, net on the consolidated balance sheets, capital lease obligations entered into, and future minimum rental commitments are not material.

Borrowings

12 Months Ended

Dec. 31, 2017

Long-term Debt, Current and Noncurrent [Abstract]

Debt Disclosure

Borrowings

Debt at December 31 consisted of the following:



	2017			2016
Short-term commercial paper borrowings	$	2,696.8		$	1,299.3
0.00 to 7.13 percent long-term notes (due 2018-2047)	10,756.7			8,776.5
Other long-term debt, including capitalized leases	13.6			14.4
Unamortized debt issuance costs	(49.0		)	(37.5		)
Fair value adjustment on hedged long-term notes	229.0			252.5
Total debt	13,647.1			10,305.2
Less current portion	(3,706.6		)	(1,937.4		)
Long-term debt	$	9,940.5		$	8,367.8

The weighted-average effective borrowing rate on outstanding commercial paper at December 31, 2017 was 1.34 percent.

At December 31, 2017, we had a total of $5.57 billion of unused committed bank credit facilities, which consisted primarily of a $1.20 billion credit facility that expires in August 2019 and a $3.80 billion 364-day facility that expires in December 2018, both of which are available to support our commercial paper program. There was $6.0 million outstanding under the revolving credit facilities as of December 31, 2017, and no amount was outstanding under these facilities as of December 31, 2016. Compensating balances and commitment fees are not material, and there are no conditions that are probable of occurring under which the lines may be withdrawn.

In May 2017, we issued $750.0 million of 2.35 percent fixed-rate notes due in May 2022, $750.0 million of 3.10 percent fixed-rate notes due in May 2027, and $750.0 million of 3.95 percent fixed-rate notes due in May 2047, with interest to be paid semi-annually. We are using the net proceeds of $2.23 billion from the sale of these notes for general corporate purposes, which may include the repayment of notes due in 2018 and 2019. Prior to such uses, we may temporarily invest the net proceeds in investment securities.

In May 2016, we issued Swiss franc-denominated notes consisting of Fr.200.0 million of 0.00 percent fixed-rate notes due in May 2018, Fr.600.0 million of 0.15 percent fixed-rate notes due in May 2024, and Fr.400.0 million of 0.45 percent fixed-rate notes due in May 2028, with interest to be paid annually. We used the net cash proceeds of the offering of $1.21 billion for general corporate purposes, which included the repayment at maturity of certain of our U.S. dollar denominated fixed-rate notes due March 2017.

In June 2015, we issued euro-denominated notes consisting of €600.0 million of 1.00 percent fixed-rate notes due in June 2022, €750.0 million of 1.63 percent fixed-rate notes due in June 2026, and €750.0 million of 2.13 percent fixed-rate notes due in June 2030 with interest to be paid annually. The net cash proceeds of the offering of $2.27 billion were used primarily to purchase and redeem certain higher interest rate U.S. dollar-denominated notes and to repay outstanding commercial paper. We paid $1.95 billion to purchase and redeem notes with an aggregate principal amount of $1.65 billion and a net carrying value of $1.78 billion in June 2015, resulting in a pretax debt extinguishment loss of $166.7 million, which was included in other–net, (income) expense in our consolidated statement of operations during the year ended December 31, 2015.

In March 2015, we issued $600.0 million of 1.25 percent fixed-rate notes due in March 2018, $800.0 million of 2.75 percent fixed-rate notes due in June 2025, and $800.0 million of 3.70 percent fixed-rate notes due in March 2045 with interest to be paid semi-annually. The proceeds from the issuance of the notes were used primarily to repay outstanding commercial paper issued in connection with our January 2015 acquisition of Novartis AH.

The aggregate amounts of maturities on long-term debt for the next five years are as follows:



	2018		2019		2020		2021		2022
Maturities on long-term debt	$	1,008.8	$	604.0	$	2.7	$	1.4	$	1,467.4

We have converted approximately 28 percent of our long-term fixed-rate notes to floating rates through the use of interest rate swaps. The weighted-average effective borrowing rates based on long-term debt obligations and interest rates at December 31, 2017 and 2016, including the effects of interest rate swaps for hedged debt obligations, were 2.65 percent and 2.51 percent, respectively.

The aggregate amount of cash payments for interest on borrowings, net of capitalized interest, are as follows:



	2017		2016		2015
Cash payments for interest on borrowings	$	192.7	$	146.4	$	129.6

In accordance with the requirements of derivatives and hedging guidance, the portion of our fixed-rate debt obligations that is hedged as a fair value hedge, is reflected in the consolidated balance sheets as an amount equal to the sum of the debt’s carrying value plus the fair value adjustment representing changes in fair value of the hedged debt attributable to movements in market interest rates subsequent to the inception of the hedge.

Stock-Based Compensation

12 Months Ended

Dec. 31, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

Our stock-based compensation expense consists of performance awards (PAs), shareholder value awards (SVAs), and restricted stock units (RSUs). We recognize the fair value of stock-based compensation as expense over the requisite service period of the individual grantees, which generally equals the vesting period. We provide newly issued shares of our common stock and treasury stock to satisfy the issuance of PA, SVA, and RSU shares.

Stock-based compensation expense and the related tax benefits were as follows:



	2017		2016		2015
Stock-based compensation expense	$	281.3	$	255.3	$	217.8
Tax benefit	70.5		89.4		76.2

At December 31, 2017, additional stock-based compensation awards may be granted under the 2002 Lilly Stock Plan for not more than 98.3 million shares.

Performance Award Program

PAs are granted to officers and management and are payable in shares of our common stock. The number of PA shares actually issued, if any, varies depending on the achievement of certain pre-established earnings-per-share targets over a two-year period. PA shares are accounted for at fair value based upon the closing stock price on the date of grant and fully vest at the end of the measurement period. The fair values of PAs granted for the years ended December 31, 2017, 2016, and 2015 were $73.54, $72.00, and $70.34, respectively. The number of shares ultimately issued for the PA program is dependent upon the earnings achieved during the vesting period. Pursuant to this program, approximately 1.3 million shares, 0.5 million shares, and 0.5 million shares were issued during the years ended December 31, 2017, 2016, and 2015, respectively. Approximately 0.8 million shares are expected to be issued in 2018. As of December 31, 2017, the total remaining unrecognized compensation cost related to nonvested PAs was $64.1 million, which will be amortized over the weighted-average remaining requisite service period of 12 months.

Shareholder Value Award Program

SVAs are granted to officers and management and are payable in shares of our common stock. The number of shares actually issued, if any, varies depending on our stock price at the end of the three-year vesting period compared to pre-established target stock prices. We measure the fair value of the SVA unit on the grant date using a Monte Carlo simulation model. The model utilizes multiple input variables that determine the probability of satisfying the market condition stipulated in the award grant and calculates the fair value of the award. Expected volatilities utilized in the model are based on implied volatilities from traded options on our stock, historical volatility of our stock price, and other factors. Similarly, the dividend yield is based on historical experience and our estimate of future dividend yields. The risk-free interest rate is derived from the U.S. Treasury yield curve in effect at the time of grant. The weighted-average fair values of the SVA units granted during the years ended December 31, 2017, 2016, and 2015 were $66.25, $48.68, and $54.81, respectively, determined using the following assumptions:



(Percents)	2017		2016		2015
Expected dividend yield	2.50	%	2.00	%	2.50	%
Risk-free interest rate	1.38		0.92		0.79
Volatility	22.91		21.68		20.37

Pursuant to this program, approximately 1.1 million shares, 1.0 million shares, and 1.4 million shares were issued during the years ended December 31, 2017, 2016, and 2015, respectively. Approximately 0.7 million shares are expected to be issued in 2018. As of December 31, 2017, the total remaining unrecognized compensation cost related to nonvested SVAs was $55.5 million, which will be amortized over the weighted-average remaining requisite service period of 20 months.

Restricted Stock Units

RSUs are granted to certain employees and are payable in shares of our common stock. RSU shares are accounted for at fair value based upon the closing stock price on the date of grant. The corresponding expense is amortized over the vesting period, typically three years. The fair values of RSU awards granted during the years ended December 31, 2017, 2016, and 2015 were $72.47, $71.46, and $71.69, respectively. The number of shares ultimately issued for the RSU program remains constant with the exception of forfeitures. Pursuant to this program, 1.4 million, 1.3 million, and 0.9 million shares were granted and approximately 0.9 million, 0.6 million, and 0.9 million shares were issued during the years ended December 31, 2017, 2016, and 2015, respectively. Approximately 1.0 million shares are expected to be issued in 2018. As of December 31, 2017, the total remaining unrecognized compensation cost related to nonvested RSUs was $119.0 million, which will be amortized over the weighted-average remaining requisite service period of 23 months.

Shareholders' Equity	12 Months Ended
Shareholders' Equity	Dec. 31, 2017
Stockholders' Equity Note [Abstract]
Shareholders' Equity	Shareholders' Equity During 2017, 2016, and 2015, we repurchased $359.8 million, $540.1 million and $749.5 million, respectively, of shares associated with our $5.00 billion share repurchase program announced in 2013. As of December 31, 2017, there were $2.05 billion of shares remaining in that program. A payment of $60.0 million was made in 2016 for shares repurchased in 2017. We have 5.0 million authorized shares of preferred stock. As of December 31, 2017 and 2016, no preferred stock was issued. We have an employee benefit trust that held 50.0 million shares of our common stock at both December 31, 2017 and 2016, to provide a source of funds to assist us in meeting our obligations under various employee benefit plans. The cost basis of the shares held in the trust was $3.01 billion at both December 31, 2017 and 2016, and is shown as a reduction of shareholders’ equity. Any dividend transactions between us and the trust are eliminated. Stock held by the trust is not considered outstanding in the computation of EPS. The assets of the trust were not used to fund any of our obligations under these employee benefit plans during the years ended December 31, 2017, 2016, and 2015.

Income Taxes

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Income Taxes

2017 Tax Act

In December 2017, the President of the U.S. signed into law the Tax Cuts and Jobs Act (2017 Tax Act). The 2017 Tax Act includes significant changes to the U.S. corporate income tax system, such as the reduction in the corporate income tax rate from 35 percent to 21 percent, transition to a territorial tax system, changes to business related exclusions, deductions and credits, and modifications to international tax provisions, including a one-time repatriation transition tax (also known as the ‘Toll Tax’) on unremitted foreign earnings.

GAAP requires that the income tax accounting effects from a change in tax laws or tax rates be recognized in continuing operations in the reporting period that includes the enactment date of the change. These effects include, among other things, re-measuring deferred tax assets and liabilities, evaluating deferred tax assets for valuation allowances, and assessing the impact of the Toll Tax and certain other provisions of the 2017 Tax Act. Our accounting for the tax effects of the enactment of the 2017 Tax Act was not complete as of December 31, 2017; however, in certain cases, as described below, we have made a reasonable estimate. In other cases, we have not been able to make a reasonable estimate and continued to account for those items based on our existing accounting model under ASC 740, Income Taxes, and the provisions of the tax laws that were in effect immediately prior to enactment. For the items for which we were able to determine a reasonable estimate, we recognized a provisional amount of $1.91 billion, which is included as a component of income tax expense from continuing operations. This amount represents approximately $3.6 billion attributable to the Toll Tax, partially offset by the changes in deferred taxes resulting from the transition to a U.S. territorial tax system, including the re-measurement of deferred taxes.

Our estimate of the impact of the 2017 Tax Act is based upon our analysis and interpretations of currently available information. Uncertainties remain regarding the impact of the 2017 Tax Act due to future regulatory and rulemaking processes, prospects of additional corrective or supplemental legislation, and potential trade or other litigation. These uncertainties, along with our completion of the calculations and potential changes in our initial assumptions as new information becomes available, could cause the actual charge to ultimately differ materially from the provisional amount recorded in 2017 related to the enactment of the 2017 Tax Act.

We have included provisional amounts based upon reasonable estimates for the following:


•	Toll Tax

The 2017 Tax Act imposes a one-time Toll Tax on unremitted foreign earnings and profits (E&P) at two different tax rates, with a higher tax rate applied to amounts held in cash and liquid assets. We have not yet completed our calculations of the items composing the Toll Tax, including the total post-1986 E&P of our foreign subsidiaries and amounts held as cash and liquid assets; therefore, we recorded a provisional amount of federal and state income taxes based upon a reasonable estimate. The amount is also subject to change as we assimilate the new laws and subsequent regulations, interpretations, and guidance as they are issued. Additionally, companies have the option to elect to pay the Toll Tax in eight installments. Provisional amounts were recorded to short-term and long-term income tax payable; these amounts may change when the Toll Tax calculation is complete. The impact to state income tax expense is also subject to change based upon revisions ultimately made to the Toll Tax calculation, changes in our assumptions related to state taxation of the income used to calculate the Toll Tax, and future guidance that may be issued.


•	Re-measurement of deferred tax assets and liabilities

The 2017 Tax Act reduced the U.S. corporate income tax rate from 35 percent to 21 percent effective January 1, 2018. GAAP requires deferred tax assets and liabilities to be measured at the enacted tax rate expected to apply when these temporary differences are to be realized or settled. As a result, we determined the amount recorded to income tax expense in continuing operations by using temporary differences that approximated our deferred tax balances at the date of enactment considering any material transactions that occurred between the enactment date and December 31, 2017. We assessed the need for valuation allowances as a result of re-measuring existing temporary differences and considering tax attribute balances; changes recorded to valuation allowances are also reflected in income tax expense from continuing operations. Re-measurement of the deferred tax assets and liabilities in addition to assessment of valuation allowances is subject to uncertainties given that approximated balances were utilized for the enactment date and tax accounting method changes may be considered.

Under GAAP, the effect of a change in tax law is recorded as a component of the income tax expense related to continuing operations in the period of enactment. Adjusting the deferred taxes for temporary differences that arose from items of income or loss that were originally recorded in other comprehensive income through continuing operations results in a disproportionate tax effect in AOCL. ASU 2018-02, Income Statement-Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, allows companies to reclassify the stranded tax effects that result from the 2017 Tax Act from AOCL to retained earnings with early adoption permitted. We early adopted the standard and recorded a provisional amount (see Note 2).


•	Unremitted foreign earnings, executive compensation, and uncertain tax positions

A provisional amount was recorded to reflect foreign withholding taxes and state income taxes for future repatriation of non-indefinitely reinvested earnings; no additional amount was recorded for outside basis differences in our foreign subsidiaries. We have made assumptions related to the creditability of those foreign withholding taxes; therefore, these amounts may change upon completion of our calculations.

The 2017 Tax Act includes changes to the taxation of executive compensation. We have recorded a provisional amount based upon our estimates, interpretations of the new law, and external guidance. The provisional amount recorded could change based upon revisions to any of those assumptions.

Relative to the provisional amounts recorded as a result of the 2017 Tax Act, we also recorded a provisional amount related to changes in uncertain tax positions. Future changes to the provisional amounts recorded, in addition to future changes to income tax expense for items for which reasonable estimates were not made, could change the recorded amount. The estimates and assumptions used to record a provisional amount for uncertain tax positions could also change upon completion of our calculations and upon revisions related to subsequent regulations, interpretations, and guidance, if and when issued.

We could not make a reasonable estimate; therefore, we did not record a provisional amount for the following items:

•

The 2017 Tax Act includes an international tax provision for the taxation of Global Intangible Low-Taxed Income (GILTI) effective January 1, 2018. Questions have surfaced as to whether the income taxes related to GILTI should be recorded in the period the tax arises or whether deferred taxes should be established for basis differences that upon reversal might be subject to GILTI. ASC 740 does not provide clear guidance on this topic and companies are allowed to make an accounting policy election. We have recorded no provisional amount for GILTI deferred taxes as more time is needed to analyze the data in order to make an accounting policy election.


•	The 2017 Tax Act includes significant changes to the U.S. international tax provisions, including GILTI, Base Erosion Anti-abuse Tax, and Foreign Derived Intangible Income. For purposes of analyzing valuation allowances for net operating loss and tax credit carryforwards, we recorded no provisional amount for release of valuation allowances as more time is needed to analyze the data.

We will continue to assess the impact of the 2017 Tax Act on our consolidated financial statements during the measurement period, which should be no longer than one year from the 2017 Tax Act enactment date. As discussed above, the 2017 Tax Act included numerous changes to the U.S. tax system. We have made a good faith effort to identify items for which no reasonable estimate was made; however, additional items requiring accounting may be identified as we complete our analysis and new information becomes available. Therefore, no reasonable estimate has been made for items in the new tax law that have not been identified.

Deferred taxes are recognized for the future tax effects of temporary differences between financial and income tax reporting based on enacted tax laws and rates.

We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate resolution.

Following is the composition of income tax expense:



	2017			2016			2015
Current:
Federal	$	(100.6	)	$	(57.0	)	$	660.5
Foreign	38.5			378.9			422.0
State	4.0			(125.0		)	47.5
2017 Tax Act - provisional	3,247.5			—			—
Total current tax expense	3,189.4			196.9			1,130.0
Deferred:
Federal	801.5			517.0			(689.6		)
Foreign	(256.3		)	(83.3		)	(66.0		)
State	0.4			5.8			7.2
2017 Tax Act - provisional	(1,333.5		)	—			—
Total deferred tax (benefit) expense	(787.9		)	439.5			(748.4		)
Income taxes	$	2,401.5		$	636.4		$	381.6

Significant components of our deferred tax assets and liabilities as of December 31 are as follows:



	2017			2016
Deferred tax assets:
Compensation and benefits	$	1,021.7		$	1,126.0
Tax loss carryforwards and carrybacks	501.4			327.3
Tax credit carryforwards and carrybacks	473.0			458.9
Purchases of intangible assets	443.1			620.3
Product return reserves	88.4			128.1
Other comprehensive loss on hedging transactions	68.9			123.3
Debt	53.5			95.3
Contingent consideration	41.8			142.7
Other	555.8			587.3
Total gross deferred tax assets	3,247.6			3,609.2
Valuation allowances	(709.1		)	(648.3		)
Total deferred tax assets	2,538.5			2,960.9
Deferred tax liabilities:
Inventories	(654.8		)	(955.5		)
Intangibles	(314.6		)	(604.2		)
Property and equipment	(282.1		)	(398.6		)
Prepaid employee benefits	(231.5		)	(265.3		)
Financial instruments	(41.5		)	(279.3		)
Unremitted earnings	(16.6		)	(673.6		)
Total deferred tax liabilities	(1,541.1		)	(3,176.5		)
Deferred tax assets (liabilities) - net	$	997.4		$	(215.6	)

Deferred tax assets and liabilities reflect the provisional impact of re-measurement resulting from the 2017 Tax Act.

The deferred tax asset and related valuation allowance amounts for U.S. federal and state net operating losses and tax credits shown above have been reduced for differences between financial reporting and tax return filings.

At December 31, 2017, based on filed tax returns we have tax credit carryforwards and carrybacks of $692.0 million available to reduce future income taxes; $148.9 million, if unused, will expire by 2027. The remaining portion of the tax credit carryforwards is related to federal tax credits of $101.0 million, international tax credits of $129.0 million, and state tax credits of $313.1 million, all of which are substantially reserved.

At December 31, 2017, based on filed tax returns we had net operating losses and other carryforwards for international and U.S. federal income tax purposes of $3.21 billion: $6.5 million will expire by 2022; $640.5 million will expire between 2023 and 2037; and $2.56 billion of the carryforwards will never expire. Net operating losses and other carryforwards for international and U.S. federal income tax purposes are partially reserved. Deferred tax assets related to state net operating losses of $113.2 million and other state carryforwards of $2.5 million are fully reserved.

Domestic and Puerto Rican companies contributed approximately 15 percent, 70 percent, and 35 percent for the years ended December 31, 2017, 2016, and 2015, respectively, to consolidated income before income taxes. We have a subsidiary operating in Puerto Rico under a tax incentive grant effective through the end of 2031.

The 2017 Tax Act introduces international tax provisions that fundamentally change the U.S. taxation of foreign earnings. As a result, U.S. taxes previously accrued on unremitted foreign earnings have been reversed, and a provisional amount has been recorded to reflect amounts for foreign withholding taxes and state income taxes that would be owed upon future distributions of unremitted earnings of foreign subsidiaries that are not indefinitely reinvested. At December 31, 2017, due to the 2017 Tax Act, substantially all of the unremitted earnings of foreign subsidiaries are considered to not be indefinitely reinvested for continued use in our foreign operations. For the amount considered to be indefinitely reinvested, the amount of foreign withholding taxes and state income taxes that would be owed upon distribution is immaterial.

Cash payments of income taxes were as follows:



	2017		2016		2015
Cash payments of income taxes	$	246.5	$	700.6	$	969.0

The 2017 Tax Act provides an election to taxpayers subject to the Toll Tax to make payments over an eight year period with the first payment due on the original filing due date of the 2017 federal income tax return. We intend to make this election; therefore, future cash payments of income taxes will include the Toll Tax installments.

Following is a reconciliation of the income tax expense applying the U.S. federal statutory rate to income before income taxes to reported income tax expense:



	2017			2016			2015
Income tax at the U.S. federal statutory tax rate	$	769.1		$	1,180.9		$	976.5
Add (deduct):
International operations, including Puerto Rico	(428.9		)	(313.7		)	(565.2		)
General business credits	(66.8		)	(58.3		)	(69.2		)
2017 Tax Act - provisional	1,914.0			—			—
Non-deductible acquired IPR&D - CoLucid (Note 3)	300.1			—			—
Other	(86.0		)	(172.5		)	39.5
Income taxes	$	2,401.5		$	636.4		$	381.6

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:



	2017			2016			2015
Beginning balance at January 1	$	853.4		$	1,066.6		$	1,338.8
Additions based on tax positions related to the current year	133.8			73.4			131.3
Additions for tax positions of prior years	97.5			14.8			116.6
Reductions for tax positions of prior years	(59.3		)	(15.2		)	(45.2		)
Settlements	(2.4		)	(171.9		)	(446.2		)
Lapses of statutes of limitation	(19.3		)	(110.0		)	(4.0		)
Changes related to the impact of foreign currency translation	10.8			(4.3		)	(24.7		)
Ending balance at December 31	$	1,014.5		$	853.4		$	1,066.6

The total amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate was $670.9 million and $382.8 million at December 31, 2017 and 2016, respectively.

We file income tax returns in the U.S. federal jurisdiction and various state, local, and non-U.S. jurisdictions. We are no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations in most major taxing jurisdictions for years before 2010.

The U.S. examination of tax years 2010-2012 commenced during the fourth quarter of 2013. In December 2015, we executed a closing agreement with the Internal Revenue Service which effectively settled certain matters for tax years 2010-2012. Accordingly, we reduced our gross uncertain tax positions by approximately $320 million in 2015. During 2016, we effectively settled the remaining matters related to tax years 2010-2012. As a result of this resolution, our gross uncertain tax positions were further reduced by approximately $140 million, and our consolidated results of operations benefited from an immaterial reduction in income tax expense. During 2016, we made cash payments of approximately $150 million related to tax years 2010-2012 after application of available tax credit carryforwards and carrybacks. The U.S. examination of tax years 2013-2015 began in 2016. While we believe it is reasonably possible that this audit could reach resolution within the next 12 months, the IRS examination of tax years 2013-2015 remains ongoing. Therefore, it is not possible to reasonably estimate the change to unrecognized tax benefits and the related future cash flows.

We recognize both accrued interest and penalties related to unrecognized tax benefits in income tax expense. We recognized income tax (benefit) expense related to interest and penalties as follows:



	2017		2016			2015
Income tax (benefit) expense	$	27.4	$	(52.5	)	$	13.2

At December 31, 2017 and 2016, our accruals for the payment of interest and penalties totaled $170.7 million and $134.9 million, respectively.

Retirement Benefits

12 Months Ended

Dec. 31, 2017

Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]

Retirement Benefits

We use a measurement date of December 31 to develop the change in benefit obligation, change in plan assets, funded status, and amounts recognized in the consolidated balance sheets at December 31 for our defined benefit pension and retiree health benefit plans, which were as follows:



	Defined Benefit Pension Plans						Retiree Health Benefit Plans
	2017			2016			2017			2016
Change in benefit obligation:
Benefit obligation at beginning of year	$	12,455.9		$	11,719.2		$	1,494.6		$	1,467.4
Service cost	331.3			277.7			46.4			39.1
Interest cost	413.4			420.8			52.9			53.2
Actuarial (gain) loss	1,580.5			806.5			40.0			50.9
Benefits paid	(486.3		)	(454.5		)	(60.1		)	(59.8		)
Plan amendments	—			—			—			(35.8		)
Curtailment	90.4			—			105.2			—
Special termination benefit	317.2			—			37.5			—
Foreign currency exchange rate changes and other adjustments	396.0			(313.8		)	12.0			(20.4		)
Benefit obligation at end of year	15,098.4			12,455.9			1,728.5			1,494.6



Change in plan assets:
Fair value of plan assets at beginning of year	10,179.7		9,995.6		1,961.2		1,943.7
Actual return on plan assets	1,447.6		853.4		462.0		68.9
Employer contribution	414.3		110.2		9.1		8.4
Benefits paid	(486.3	)	(454.5	)	(60.1	)	(59.8	)
Foreign currency exchange rate changes and other adjustments	289.2		(325.0	)	0.2		—
Fair value of plan assets at end of year	11,844.5		10,179.7		2,372.4		1,961.2



Funded status	(3,253.9		)	(2,276.2		)	643.9			466.6
Unrecognized net actuarial loss	5,645.5			4,915.7			182.0			458.8
Unrecognized prior service (benefit) cost	15.2			21.7			(395.0		)	(525.1		)
Net amount recognized	$	2,406.8		$	2,661.2		$	430.9		$	400.3



Amounts recognized in the consolidated balance sheet consisted of:
Sundry	$	106.8		$	29.7		$	869.0		$	689.3
Other current liabilities	(64.8		)	(68.0		)	(7.1		)	(6.7		)
Accrued retirement benefits	(3,295.9		)	(2,237.9		)	(218.0		)	(216.0		)
Accumulated other comprehensive (income) loss before income taxes	5,660.7			4,937.4			(213.0		)	(66.3		)
Net amount recognized	$	2,406.8		$	2,661.2		$	430.9		$	400.3

The unrecognized net actuarial loss and unrecognized prior service cost (benefit) have not yet been recognized in net periodic pension costs and are included in AOCL at December 31, 2017.

The workforce reduction plan initiated in 2017 included a curtailment loss of $159.0 million and a special termination benefit of $354.7 million as a result of a remeasurement as of October 31, 2017. The special termination benefits related to early retirement incentives offered as part of a voluntary early retirement program for the U.S. plan in the fourth quarter of 2017. This program allowed certain employees the opportunity to voluntarily leave the Company.

During 2018, we expect the following components of AOCL to be recognized as components of net periodic benefit cost:



	Defined Benefit Pension Plans		Retiree Health Benefit Plans
Unrecognized net actuarial loss	$	366.1	$	9.5
Unrecognized prior service (benefit) cost	5.1		(81.3		)
Total	$	371.2	$	(71.8	)

We do not expect any plan assets to be returned to us in 2018.

The following represents our weighted-average assumptions as of December 31:



	Defined Benefit Pension Plans						Retiree Health Benefit Plans
(Percents)	2017		2016		2015		2017		2016		2015
Discount rate for benefit obligation	3.4	%	3.9	%	4.3	%	3.7	%	4.3	%	4.5	%
Discount rate for net benefit costs	3.9		4.3		4.0		4.3		4.5		4.1
Rate of compensation increase for benefit obligation	3.4		3.4		3.4
Rate of compensation increase for net benefit costs	3.4		3.4		3.4
Expected return on plan assets for net benefit costs	7.4		7.4		7.4		8.0		8.0		8.0

We annually evaluate the expected return on plan assets in our defined benefit pension and retiree health benefit plans. In evaluating the expected rate of return, we consider many factors, with a primary analysis of current and projected market conditions; asset returns and asset allocations; and the views of leading financial advisers and economists. We may also review our historical assumptions compared with actual results, as well as the assumptions and trend rates utilized by similar plans, where applicable.

Given the design of our retiree health benefit plans, healthcare-cost trend rates do not have a material impact on our financial condition or results of operations.

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid as follows:



	2018		2019		2020		2021		2022		2023-2027
Defined benefit pension plans	$	603.9	$	601.4	$	611.6	$	621.4	$	639.5	$	3,455.8
Retiree health benefit plans	92.8		94.8		96.5		98.7		98.5		496.3

Amounts relating to defined benefit pension plans with projected benefit obligations in excess of plan assets were as follows at December 31:



	2017		2016
Projected benefit obligation	$	13,025.0	$	10,597.0
Fair value of plan assets	9,664.3		8,291.2

Amounts relating to defined benefit pension plans and retiree health benefit plans with accumulated benefit obligations in excess of plan assets were as follows at December 31:



	Defined Benefit Pension Plans				Retiree Health Benefit Plans
	2017		2016		2017		2016
Accumulated benefit obligation	$	11,956.7	$	9,805.4	$	225.1	$	222.7
Fair value of plan assets	9,639.4		8,285.2		—		—

The total accumulated benefit obligation for our defined benefit pension plans was $13.90 billion and $11.49 billion at December 31, 2017 and 2016, respectively.

Net pension and retiree health benefit expense included the following components:



	Defined Benefit Pension Plans									Retiree Health Benefit Plans
	2017			2016			2015			2017			2016			2015
Components of net periodic (benefit) cost:
Service cost	$	331.3		$	277.7		$	315.7		$	46.4		$	39.1		$	45.1
Interest cost	413.4			420.8			476.8			52.9			53.2			62.6
Expected return on plan assets	(776.0		)	(752.1		)	(782.3		)	(160.7		)	(150.2		)	(150.0		)
Amortization of prior service (benefit) cost	5.7			11.8			10.4			(90.0		)	(85.8		)	(91.1		)
Recognized actuarial loss	288.2			285.6			383.2			18.4			19.1			38.0
Curtailment	93.5			—			—			65.5			—			—
Special termination benefit	317.2			—			—			37.5			—			—
Net periodic (benefit) cost	$	673.3		$	243.8		$	403.8		$	(30.0	)	$	(124.6	)	$	(95.4	)

As of January 1, 2016, we changed the method used to estimate the service and interest cost components of the net periodic pension and retiree health benefit plan costs. This new method uses the spot yield curve approach to estimate the service and interest costs by applying the specific spot rates along the yield curve to the projected cash outflows of our obligations. Previously, those costs were determined using a single weighted-average discount rate. The new method provides a more precise measure of interest and service costs by improving the correlation between the projected benefit cash flows and the specific spot yield curve rates. The change did not affect the measurement of the total benefit obligations as the change in service and interest costs is recorded in the actuarial gains and losses recorded in AOCL. We have accounted for this change as a change in estimate prospectively.

The following represents the amounts recognized in other comprehensive income (loss) for the years ended December 31, 2017, 2016, and 2015:



	Defined Benefit Pension Plans								Retiree Health Benefit Plans
	2017			2016			2015		2017			2016			2015
Actuarial gain (loss) arising during period	$	(915.1	)	$	(725.2	)	$	120.4	$	261.3		$	(132.2	)	$	48.6
Plan amendments during period	—			—			0.4		—			35.8			—
Curtailment	3.2			—			—		(39.7		)	—			—
Amortization of prior service (benefit) cost included in net income	5.7			11.8			10.4		(90.0		)	(85.8		)	(91.1		)
Amortization of net actuarial loss included in net income	288.2			285.6			383.2		18.4			19.1			38.0
Foreign currency exchange rate changes and other	(105.3		)	75.6			58.8		(3.3		)	2.5			4.2
Total other comprehensive income (loss) during period	$	(723.3	)	$	(352.2	)	$	573.2	$	146.7		$	(160.6	)	$	(0.3	)

We have defined contribution savings plans that cover our eligible employees worldwide. The purpose of these plans is generally to provide additional financial security during retirement by providing employees with an incentive to save. Our contributions to the plans are based on employee contributions and the level of our match. Expenses under the plans totaled $169.1 million, $175.0 million, and $162.4 million for the years ended December 31, 2017, 2016, and 2015, respectively.

We provide certain other postemployment benefits primarily related to disability benefits and accrue for the related cost over the service lives of employees. Expenses associated with these benefit plans for the years ended December 31, 2017, 2016, and 2015 were not material.

Benefit Plan Investments

Our benefit plan investment policies are set with specific consideration of return and risk requirements in relationship to the respective liabilities. U.S. and Puerto Rico plans represent approximately 80 percent of our global investments. Given the long-term nature of our liabilities, these plans have the flexibility to manage an above-average degree of risk in the asset portfolios. At the investment-policy level, there are no specifically prohibited investments. However, within individual investment manager mandates, restrictions and limitations are contractually set to align with our investment objectives, ensure risk control, and limit concentrations.

We manage our portfolio to minimize concentration of risk by allocating funds within asset categories. In addition, within a category we use different managers with various management objectives to eliminate any significant concentration of risk.

Our global benefit plans may enter into contractual arrangements (derivatives) to implement the local investment policy or manage particular portfolio risks. Derivatives are principally used to increase or decrease exposure to a particular public equity, fixed income, commodity, or currency market more rapidly or less expensively than could be accomplished through the use of the cash markets. The plans utilize both exchange-traded and over-the-counter instruments. The maximum exposure to either a market or counterparty credit loss is limited to the carrying value of the receivable, and is managed within contractual limits. We expect all of our counterparties to meet their obligations. The gross values of these derivative receivables and payables are not material to the global asset portfolio, and their values are reflected within the tables below.

The defined benefit pension and retiree health benefit plan allocation for the U.S. and Puerto Rico currently comprises approximately 80 percent growth investments and 20 percent fixed-income investments. The growth investment allocation encompasses U.S. and international public equity securities, hedge funds, private equity-like investments, and real estate. These portfolio allocations are intended to reduce overall risk by providing diversification, while seeking moderate to high returns over the long term.

Public equity securities are well diversified and invested in U.S. and international small-to-large companies across various asset managers and styles. The remaining portion of the growth portfolio is invested in private alternative investments.

Fixed-income investments primarily consist of fixed-income securities in U.S. treasuries and agencies, emerging market debt obligations, corporate bonds, mortgage-backed securities, commercial mortgage-backed obligations, and any related repurchase agreements.

Hedge funds are privately owned institutional investment funds that generally have moderate liquidity. Hedge funds seek specified levels of absolute return regardless of overall market conditions, and generally have low correlations to public equity and debt markets. Hedge funds often invest substantially in financial market instruments (stocks, bonds, commodities, currencies, derivatives, etc.) using a very broad range of trading activities to manage portfolio risks. Hedge fund strategies focus primarily on security selection and seek to be neutral with respect to market moves. Common groupings of hedge fund strategies include relative value, tactical, and event driven. Relative value strategies include arbitrage, when the same asset can simultaneously be bought and sold at different prices, achieving an immediate profit. Tactical strategies often take long and short positions to reduce or eliminate overall market risks while seeking a particular investment opportunity. Event strategy opportunities can evolve from specific company announcements such as mergers and acquisitions, and typically have little correlation to overall market directional movements. Our hedge fund investments are made through limited partnership interests primarily in fund-of-funds structures to ensure diversification across many strategies and many individual managers. Plan holdings in hedge funds are valued based on net asset values (NAVs) calculated by each fund or general partner, as applicable, and we have the ability to redeem these investments at NAV.

Private equity-like investment funds typically have low liquidity and are made through long-term partnerships or joint ventures that invest in pools of capital invested in primarily non-publicly traded entities. Underlying investments include venture capital (early stage investing), buyout, and special situation investing. Private equity management firms typically acquire and then reorganize private companies to create increased long term value. Private equity-like funds usually have a limited life of approximately 10-15 years, and require a minimum investment commitment from their limited partners. Our private investments are made both directly into funds and through fund-of-funds structures to ensure broad diversification of management styles and assets across the portfolio. Plan holdings in private equity-like investments are valued using the value reported by the partnership, adjusted for known cash flows and significant events through our reporting date. Values provided by the partnerships are primarily based on analysis of and judgments about the underlying investments. Inputs to these valuations include underlying NAVs, discounted cash flow valuations, comparable market valuations, and may also include adjustments for currency, credit, liquidity and other risks as applicable. The vast majority of these private partnerships provide us with annual audited financial statements including their compliance with fair valuation procedures consistent with applicable accounting standards.

Real estate is composed of both public and private holdings. Real estate investments in registered investment companies that trade on an exchange are classified as Level 1 on the fair value hierarchy. Real estate investments in funds measured at fair value on the basis of NAV provided by the fund manager are classified as such. These NAVs are developed with inputs including discounted cash flow, independent appraisal, and market comparable analyses.

Other assets include cash and cash equivalents and mark-to-market value of derivatives.

The cash value of the trust-owned insurance contract is invested in investment-grade publicly traded equity and fixed-income securities.

Other than hedge funds, private equity-like investments, and real estate, which are discussed above, we determine fair values based on a market approach using quoted market values, significant other observable inputs for identical or comparable assets or liabilities, or discounted cash flow analyses.

The fair values of our defined benefit pension plan and retiree health plan assets as of December 31, 2017 by asset category are as follows:



				Fair Value Measurements Using
Asset Class	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Investments Valued at Net Asset Value⁽¹⁾
Defined Benefit Pension Plans
Public equity securities:
U.S.	$	466.2		$	199.6	$	—		$	—	$	266.6
International	2,934.2			955.1		—			—		1,979.1
Fixed income:
Developed markets	3,182.9			28.7		2,468.2			—		686.0
Developed markets - repurchase agreements	(1,372.9		)	—		(1,372.9		)	—		—
Emerging markets	584.7			4.2		252.0			3.1		325.4
Private alternative investments:
Hedge funds	2,984.6			—		—			—		2,984.6
Equity-like funds	1,639.6			—		—			16.8		1,622.8
Real estate	563.9			338.6		—			—		225.3
Other	861.3			119.2		602.8			2.2		137.1
Total	$	11,844.5		$	1,645.4	$	1,950.1		$	22.1	$	8,226.9

Retiree Health Benefit Plans
Public equity securities:
U.S.	$	43.0		$	19.4	$	—		$	—	$	23.6
International	182.5			61.3		—			—		121.2
Fixed income:
Developed markets	71.2			—		63.5			—		7.7
Emerging markets	53.1			—		24.4			0.3		28.4
Private alternative investments:
Hedge funds	256.0			—		—			—		256.0
Equity-like funds	137.0			—		—			1.6		135.4
Cash value of trust owned insurance contract	1,524.6			—		1,524.6			—		—
Real estate	33.0			33.0		—			—		—
Other	72.0			15.0		50.5			0.2		6.3
Total	$	2,372.4		$	128.7	$	1,663.0		$	2.1	$	578.6

⁽¹⁾Certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy.

No material transfers between Level 1, Level 2, or Level 3 occurred during the year ended December 31, 2017. The activity in the Level 3 investments during the year ended December 31, 2017 was not material.

The fair values of our defined benefit pension plan and retiree health plan assets as of December 31, 2016 by asset category are as follows:



				Fair Value Measurements Using
Asset Class	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Investments Valued at Net Asset Value⁽¹⁾
Defined Benefit Pension Plans
Public equity securities:
U.S.	$	402.4		$	165.5	$	—		$	—	$	236.9
International	2,285.6			770.5		—			—		1,515.1
Fixed income:
Developed markets	2,631.3			27.2		1,983.0			—		621.1
Developed markets - repurchase agreements	(1,024.4		)	—		(1,024.4		)	—		—
Emerging markets	450.0			—		180.1			0.3		269.6
Private alternative investments:
Hedge funds	2,904.6			—		—			—		2,904.6
Equity-like funds	1,355.0			—		0.2			16.8		1,338.0
Real estate	504.1			344.5		—			—		159.6
Other	671.1			365.0		108.1			—		198.0
Total	$	10,179.7		$	1,672.7	$	1,247.0		$	17.1	$	7,242.9

Retiree Health Benefit Plans
Public equity securities:
U.S.	$	38.7		$	16.7	$	—		$	—	$	22.0
International	146.3			52.0		—			—		94.3
Fixed income:
Developed markets	68.0			—		58.4			—		9.6
Emerging markets	42.6			—		18.2			—		24.4
Private alternative investments:
Hedge funds	261.0			—		—			—		261.0
Equity-like funds	116.0			—		—			1.7		114.3
Cash value of trust owned insurance contract	1,208.3			—		1,208.3			—		—
Real estate	34.8			34.8		—			—		—
Other	45.5			28.1		3.7			—		13.7
Total	$	1,961.2		$	131.6	$	1,288.6		$	1.7	$	539.3

⁽¹⁾Certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy.

No material transfers between Level 1, Level 2, or Level 3 occurred during the year ended December 31, 2016. The activity in the Level 3 investments during the year ended December 31, 2016 was not material.

In 2018, we expect to contribute approximately $50 million to our defined benefit pension plans to satisfy minimum funding requirements for the year. Additional discretionary contributions are not expected to be significant.

Contingencies	12 Months Ended
Contingencies	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Contingencies	Contingencies We are a party to various legal actions and government investigations. The most significant of these are described below. It is not possible to determine the outcome of these matters, and we cannot reasonably estimate the maximum potential exposure or the range of possible loss in excess of amounts accrued for any of these matters; however, we believe that, except as noted below with respect to the Alimta^® patent litigation and administrative proceedings, the resolution of all such matters will not have a material adverse effect on our consolidated financial position or liquidity, but could possibly be material to our consolidated results of operations in any one accounting period. Litigation accruals, environmental liabilities, and the related estimated insurance recoverables are reflected on a gross basis as liabilities and assets, respectively, on our consolidated balance sheets. With respect to the product liability claims currently asserted against us, we have accrued for our estimated exposures to the extent they are both probable and reasonably estimable based on the information available to us. We accrue for certain product liability claims incurred but not filed to the extent we can formulate a reasonable estimate of their costs. We estimate these expenses based primarily on historical claims experience and data regarding product usage. Legal defense costs expected to be incurred in connection with significant product liability loss contingencies are accrued when both probable and reasonably estimable. Alimta Patent Litigation and Administrative Proceedings A number of generic manufacturers are seeking approvals in the U.S., Japan, and a number of countries in Europe to market generic forms of Alimta prior to the expiration of our vitamin regimen patents, alleging that those patents are invalid, not infringed, or both. We believe our Alimta vitamin regimen patents are valid and enforceable against these generic manufacturers. However, it is not possible to determine the ultimate outcome of the proceedings, and accordingly, we can provide no assurance that we will prevail. An unfavorable outcome could have a material adverse impact on our future consolidated results of operations, liquidity, and financial position. We expect that a loss of exclusivity for Alimta would result in a rapid and severe decline in future revenue for the product in the relevant market. U.S. Patent Litigation and Administrative Proceedings In the U.S., more than 10 Abbreviated New Drug Applications (ANDAs) seeking approval to market generic versions of Alimta prior to the expiration of our vitamin regimen patent (expiring in 2021 plus pediatric exclusivity expiring in 2022) have been filed by a number of companies, including Teva Parenteral Medicines, Inc. (Teva) and APP Pharmaceuticals, LLC (APP) pursuant to procedures set out in the Drug Price Competition and Patent Term Restoration Act of 1984 (the Hatch-Waxman Act). We have received favorable decisions from the U.S. Court of Appeals for the Federal Circuit (affirming the U.S. District Court for the Southern District of Indiana’s decisions finding our U.S. vitamin regimen patent valid and infringed) against Teva, APP and two other defendants’ proposed products, and similar favorable judgments have been entered by the U.S. District Court for the Southern District of Indiana against five other companies. The remaining ANDA applicants have agreed to a stay pending the appeal of the inter partes review (IPR) described below. In October 2017, the U.S. Patent and Trademark Office (USPTO) issued written decisions in our favor following IPR of our vitamin regimen patent, finding that the generic company petitioners failed to show that the claims in our patent are unpatentable. A number of these challengers have filed an appeal. We currently have pending lawsuits in the U.S. District Court for the Southern District of Indiana alleging infringement against Dr. Reddy's Laboratories (Dr. Reddy), Hospira, Inc. (Hospira), Actavis LLC, and Apotex Inc. in response to their alternative forms of pemetrexed products, and a similar lawsuit was filed in the U.S. District Court for Delaware against Eagle Pharmaceuticals, Inc. The trial against Dr. Reddy completed in February 2018 and we expect a decision in mid-2018. The trial against Hospira is scheduled for December 2018. European Patent Litigation and Administrative Proceedings In July 2017, the U.K. Supreme Court ruled that commercialization of certain salt forms of pemetrexed (the active ingredient in Alimta), including pemetrexed products diluted in saline or dextrose, by Actavis Group ehf and other Actavis companies (collectively, Actavis) directly infringe our vitamin regimen patents in the U.K., Italy, France, and Spain. In February 2016, the U.K. High Court ruled that Actavis’ commercialization of a different proposed product diluted in dextrose solution would not infringe the patent in the U.K., Italy, France, and Spain. This case has now been superseded by the U.K. Supreme Court's decision. In June 2016, the German Federal Supreme Court granted our appeal against certain Actavis companies, vacating the prior German Court of Appeal’s ruling that our vitamin regimen patent in Germany would not be infringed by a dipotassium salt form of pemetrexed, and returned the case to the Court of Appeal to reconsider issues relating to infringement. In separate proceedings in May 2016 and June 2016, the German courts confirmed preliminary injunctions against Hexal AG (Hexal), which had stated its intention to launch a generic disodium salt product diluted in saline solution in Germany, and ratiopharm GmbH (ratiopharm), a subsidiary of Teva, which had stated its intention to launch a proposed alternative salt form of pemetrexed product diluted in dextrose solution. The German Court of Appeal affirmed the preliminary injunction against ratiopharm in May 2017. The preliminary injunction against Hexal was not appealed. The preliminary injunctions against both Hexal and ratiopharm will remain in place pending the outcome of the cases on the merits. In late 2016, the German courts issued preliminary injunctions against two other companies that had stated their intentions to launch a proposed alternative salt form of pemetrexed product diluted in dextrose solution. Hexal, Stada Arzneimittel AG and ratiopharm have separately challenged the validity of our vitamin regimen patent before the German Federal Patent court. The hearing will take place in mid-2018. We do not anticipate any generic entry into the German market at least until either the Court of Appeal considers the issues remanded by the German Federal Supreme Court in the proceedings against Actavis, or if the injunctions are lifted. Additional legal proceedings are ongoing in various national courts of other European countries. We are aware that generic competitors have received approval to market generic versions of pemetrexed in major European markets, and that a generic product is currently on the market in France. In the light of the U.K. Supreme Court judgment finding infringement in the U.K., France, Italy and Spain, Actavis has withdrawn its previously launched-at-risk generic products from these markets. We will continue to seek to remove any generic pemetrexed products launched at risk in European markets and defend the patent against validity challenges. Japanese Administrative Proceedings Three separate sets of demands for invalidation of our two vitamin regimen patents, involving several companies, have been filed with the Japanese Patent Office (JPO). In February 2017, the Japan Intellectual Property High Court confirmed the decisions of the JPO upholding the validity of both our vitamin regime patents in the challenge initiated by Sawai Pharmaceutical Co., Ltd. and joined by three other companies. This decision is now final. In May 2017, the JPO resumed one of the two remaining sets of demands, brought by Nipro Corporation (Nipro). A decision from the JPO on the Nipro demand for invalidation is expected mid-2018. The other set of demands, brought by Hospira USA and Hospira Inc., remains suspended. If upheld through all challenges, these patents provide intellectual property protection for Alimta until June 2021. Notwithstanding our patents, generic versions of Alimta were approved in Japan starting in February 2016. We do not currently anticipate that generic versions of Alimta will proceed to pricing approval. Effient Patent Litigation and Administrative Proceedings We, along with Daiichi Sankyo, Daiichi Sankyo, Inc., and Ube Industries (Ube) are engaged in U.S. patent litigation involving Effient brought pursuant to procedures set out in the Hatch-Waxman Act. More than 10 different companies have submitted ANDAs seeking approval to market generic versions of Effient prior to the expiration of Daiichi Sankyo’s and Ube’s patents (expiring in 2023) covering methods of using Effient with aspirin, and alleging the patents are invalid. Beginning in March 2014, we filed lawsuits in the U.S. District Court for the Southern District of Indiana against these companies, seeking a ruling that the patents are valid and infringed. We entered into a settlement related to the compound patent challenge and following which settlement, generic products launched in the U.S. in the third quarter of 2017. The remaining cases have been consolidated and stayed. The entry of generic competition has caused a rapid and severe decline in revenue for the product. In 2015, several generic pharmaceutical companies filed petitions with the USPTO, requesting IPR of the method-of-use patents. In September 2016, the USPTO determined that the method-of-use patents are invalid. In December 2017, the U.S. court of Appeals for the Federal Circuit affirmed the USPTO’s decisions. Daiichi Sankyo and Ube filed a request for reconsideration. The consolidated lawsuit is currently stayed with respect to all parties pending the outcome of this appeal. We believe the Effient method-of-use patents are valid and enforceable against these generic manufacturers. However, it is not possible to determine the outcome of the proceedings, and accordingly, we can provide no assurance that we will prevail. Actos^® Product Liability Litigation We were named along with Takeda Chemical Industries, Ltd. and Takeda affiliates (collectively, Takeda) as a defendant in approximately 6,700 product liability cases in the U.S. related to the diabetes medication Actos, which we co-promoted with Takeda in the U.S. from 1999 until 2006. In general, plaintiffs in these actions alleged that Actos caused or contributed to their bladder cancer. Almost all of these cases were included as part of a resolution program announced by Takeda in April 2015 in which Takeda has paid approximately $2.4 billion to resolve the vast majority of the U.S. product liability lawsuits involving Actos. Although the vast majority of U.S. product liability lawsuits involving Actos are included in the resolution program, there may be additional cases pending against Takeda and us following completion of the resolution program. We are also named along with Takeda as a defendant in three purported product liability class actions in Canada related to Actos, including one in Ontario (Casseres et al. v. Takeda Pharmaceutical North America, Inc., et al. and Carrier et al. v. Eli Lilly et al.), one in Quebec (Whyte et al. v. Eli Lilly et al.), and one in Alberta (Epp v. Takeda Canada et al.). We promoted Actos in Canada until 2009. We believe these lawsuits are without merit, and we and Takeda are prepared to defend against them vigorously. Cymbalta^® Product Liability Litigation We were named as a defendant in a purported class-action lawsuit in the U.S. District Court for the Central District of California (now called Strafford et al. v. Eli Lilly and Company) involving Cymbalta. The plaintiffs, purporting to represent a class of all persons within the U.S. who purchased and/or paid for Cymbalta, asserted claims under the consumer protection statutes of four states, California, Massachusetts, Missouri, and New York, and sought declaratory, injunctive, and monetary relief for various alleged economic injuries arising from discontinuing treatment with Cymbalta. In December 2014, the district court denied the plaintiffs' motion for class certification. Plaintiffs filed a petition with the U.S. Court of Appeals for the Ninth Circuit requesting permission to file an interlocutory appeal of the denial of class certification, which was denied. Plaintiffs filed a second motion for certification under the consumer protection acts of New York and Massachusetts. The district court denied that motion for class certification in July 2015. The district court dismissed the suits and plaintiffs appealed to the U.S. Court of Appeals for the Ninth Circuit. In June 2017, we moved to dismiss the appeal for lack of jurisdiction based on the U.S. Supreme Court's recent decision in Microsoft v. Baker. In November 2017, the U.S. Court of Appeals for the Ninth Circuit dismissed the suit. Plaintiffs continue to contest the dismissal. We are named in approximately 140 lawsuits involving approximately 1,470 plaintiffs filed in various federal and state courts alleging injuries arising from discontinuation of treatment with Cymbalta. These include approximately 40 individual and multi-plaintiff cases filed in California state court, centralized in a California Judicial Counsel Coordination Proceeding pending in Los Angeles. The first individual product liability cases were tried in August 2015 and resulted in defense verdicts against four plaintiffs. We believe all these Cymbalta lawsuits and claims are without merit. We have reached a settlement framework that provides for a comprehensive resolution of nearly all of these personal injury claims, filed or unfiled, alleging injuries from discontinuing treatment with Cymbalta. There can be no assurances, however, that a final settlement will be reached. Brazil–Employee Litigation Our subsidiary in Brazil, Eli Lilly do Brasil Limitada (Lilly Brasil), is named in a lawsuit brought by the Labor Attorney for 15th Region in the Labor Court of Paulinia, State of Sao Paulo, Brazil, alleging possible harm to employees and former employees caused by exposure to heavy metals at a former Lilly manufacturing facility in Cosmopolis, Brazil, operated by the company between 1977 and 2003. The plaintiffs allege that some employees at the facility were exposed to benzene and heavy metals; however, Lilly Brasil maintains that these alleged contaminants were never used in the facility. In May 2014, the labor court judge ruled against Lilly Brasil. The judge's ruling orders Lilly Brasil to undertake several actions of unspecified financial impact, including paying lifetime medical insurance for the employees and contractors who worked at the Cosmopolis facility more than six months during the affected years and their children born during and after this period. While we cannot currently estimate the range of reasonably possible financial losses that could arise in the event we do not ultimately prevail in the litigation, the judge has estimated the total financial impact of the ruling to be approximately 1.0 billion Brazilian real (approximately $300 million as of December 31, 2017) plus interest. We strongly disagree with the decision and filed an appeal in May 2014. We expect ruling on this appeal before the end of 2018. We are also named in approximately 30 lawsuits filed in the same court by individual former employees making similar claims. Lilly Brasil and Elanco Quimica Ltda. have been named in a lawsuit involving approximately 305 individuals alleging that the companies failed to provide warnings regarding exposure to heavy metals or proper equipment at the former Cosmopolis facility, and that this alleged failure could result in possible harm to employees, former employees, and their dependents. In June 2017, the court denied the plaintiffs' request for a preliminary injunction. In September 2017, the court dismissed the claims brought by all but the first named plaintiff. The plaintiffs are appealing that decision. Lilly Brasil and Elanco Quimica Ltda. have also been named in a separate lawsuit involving approximately 105 individuals alleging that the companies failed to provide warnings regarding exposure to heavy metals or proper equipment at the former Cosmopolis facility, and that this alleged failure could result in possible harm to contractors and suppliers, and their dependents. In November 2017, the court dismissed the claims brought by all but the first named plaintiff. We believe all of these lawsuits are without merit and are prepared to defend against them vigorously. Agri Stats, Inc. Agri Stats, Inc., our subsidiary, has been named as a co-defendant in four antitrust suits, including one putative class-action, filed in the U.S. District Court for the Northern District of Illinois. Plaintiffs consist of private direct and indirect purchasers of broiler chickens who allege that the defendants engaged in a conspiracy to limit U.S. chicken production and inflate prices. We believe these claims are without merit and are prepared to defend against them vigorously. Product Liability Insurance Because of the nature of pharmaceutical products, it is possible that we could become subject to large numbers of product liability and related claims in the future. Due to a very restrictive market for product liability insurance, we are self-insured for product liability losses for all our currently marketed products.

Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2017

Equity [Abstract]

Comprehensive Income (Loss)

Other Comprehensive Income (Loss)

The following table summarizes the activity related to each component of other comprehensive income (loss):



(Amounts presented net of taxes)	Foreign Currency Translation Gains (Losses)			Unrealized Net Gains (Losses) on Securities			Defined Benefit Pension and Retiree Health Benefit Plans			Effective Portion of Cash Flow Hedges			Accumulated Other Comprehensive Loss
Beginning balance at January 1, 2015	$	(498.4	)	$	99.7		$	(3,402.0	)	$	(191.1	)	$	(3,991.8	)

Other comprehensive income (loss) before reclassifications	(861.8		)	38.6			155.0			(36.9		)	(705.1		)
Net amount reclassified from accumulated other comprehensive loss	—			(128.2		)	234.9			9.5			116.2
Net other comprehensive income (loss)	(861.8		)	(89.6		)	389.9			(27.4		)	(588.9		)

Balance at December 31, 2015	(1,360.2		)	10.1			(3,012.1		)	(218.5		)	(4,580.7		)

Other comprehensive income (loss) before reclassifications	(581.6		)	206.7			(518.7		)	(2.2		)	(895.8		)
Net amount reclassified from accumulated other comprehensive loss	74.5			7.2			159.2			9.8			250.7
Net other comprehensive income (loss)	(507.1		)	213.9			(359.5		)	7.6			(645.1		)

Balance at December 31, 2016⁽¹⁾	(1,867.3		)	224.0			(3,371.6		)	(210.9		)	(5,225.8		)

Other comprehensive income (loss) before reclassifications	664.6			(15.7		)	(543.4		)	8.5			114.0
Net amount reclassified from accumulated other comprehensive loss	8.1			(110.6		)	153.4			9.6			60.5
Net other comprehensive income (loss)	672.7			(126.3		)	(390.0		)	18.1			174.5

Reclassifications of stranded tax effects - provisional (Note 2)	(38.8		)	15.8			(579.1		)	(41.5		)	(643.6		)

Ending balance at December 31, 2017⁽²⁾	$	(1,233.4	)	$	113.5		$	(4,340.7	)	$	(234.3	)	$	(5,694.9	)

⁽¹⁾Accumulated other comprehensive loss as of December 31, 2016 consists of $5,274.0 million of accumulated other comprehensive loss attributable to controlling interest and $48.2 million of accumulated other comprehensive income attributable to non-controlling interest.

⁽²⁾Accumulated other comprehensive loss as of December 31, 2017 consists of $5,718.6 million of accumulated other comprehensive loss attributable to controlling interest and $23.7 million of accumulated other comprehensive income attributable to non-controlling interest.

The tax effects on the net activity related to each component of other comprehensive income (loss) for the years ended December 31, were as follows:



Tax benefit (expense)	2017			2016			2015
Foreign currency translation gains/losses	$	170.8		$	(70.6	)	$	(2.0	)
Unrealized net gains/losses on securities	55.0			(89.2		)	48.5
Defined benefit pension and retiree health benefit plans	186.6			153.3			(183.0		)
Effective portion of cash flow hedges	(9.7		)	(4.1		)	14.6
Benefit/(provision) for income taxes allocated to other comprehensive income (loss) items	$	402.7		$	(10.6	)	$	(121.9	)

Except for the tax effects of foreign currency translation gains and losses related to our foreign currency-denominated notes, cross-currency interest rate swaps, and other foreign currency exchange contracts designated as net investment hedges (see Note 7), income taxes were not provided for foreign currency translation. Generally, the assets and liabilities of foreign operations are translated into U.S. dollars using the current exchange rate. For those operations, changes in exchange rates generally do not affect cash flows; therefore, resulting translation adjustments are made in shareholders' equity rather than in the consolidated statements of operations.

Reclassifications out of accumulated other comprehensive loss were as follows:



Details about Accumulated Other Comprehensive Loss Components	Year Ended December 31,									Affected Line Item in the Consolidated Statements of Operations
	2017			2016			2015
Amortization of retirement benefit items:
Prior service benefits, net	$	(84.3	)	$	(74.0	)	$	(80.7	)	⁽¹⁾
Actuarial losses	306.6			304.7			421.2			⁽¹⁾
Total before tax	222.3			230.7			340.5
Tax benefit	(68.9		)	(71.5		)	(105.6		)	Income taxes
Net of tax	153.4			159.2			234.9

Unrealized gains/losses on available-for-sale securities:
Realized gains, net	(170.2		)	(16.1		)	(209.3		)	Other—net, (income) expense
Impairment losses	—			27.3			12.0			Other—net, (income) expense
Total before tax	(170.2		)	11.2			(197.3		)
Tax (benefit) expense	59.6			(4.0		)	69.1			Income taxes
Net of tax	(110.6		)	7.2			(128.2		)

Other, net of tax ⁽²⁾	17.7			84.3			9.5			Other—net, (income) expense
Total reclassifications for the period, net of tax	$	60.5		$	250.7		$	116.2

⁽¹⁾These accumulated other comprehensive loss components are included in the computation of net periodic pension cost (see Note 14).

⁽²⁾Amount for year ended December 31, 2016 included primarily $74.5 million of foreign currency translation losses.

Other-Net, Expense (Income)

12 Months Ended

Dec. 31, 2017

Nonoperating Income (Expense) [Abstract]

Other - Net, Expense (Income)

Other–Net, (Income) Expense

Other–net, (income) expense consisted of the following:



	2017			2016			2015
Interest expense	$	225.0		$	185.2		$	161.2
Interest income	(167.3		)	(108.7		)	(87.0		)
Venezuela charge	—			203.9			—
Debt extinguishment loss (Note 10)	—			—			166.7
Other income	(110.1		)	(195.6		)	(341.5		)
Other–net, (income) expense	$	(52.4	)	$	84.8		$	(100.6	)

For the years ended December 31, 2017, 2016, and 2015, other income is primarily related to net gains on investments (Note 7).

Due to the financial crisis in Venezuela and the significant deterioration of the bolívar, we changed the exchange rate used to translate the assets and liabilities of our subsidiaries in Venezuela which resulted in a charge of $203.9 million. Prior to this change, we used the Supplementary Foreign Currency Administration System (SICAD) rate; however, this official rate was discontinued in the first quarter of 2016. After considering several factors, including the future uncertainty of the Venezuelan economy, published exchange rates, and the limited amount of foreign currency exchanged, we changed to the Divisa Complementaria (DICOM) rate.

Segment Information

12 Months Ended

Dec. 31, 2017

Segment Reporting [Abstract]

Segment Information

We have two operating segments—human pharmaceutical products and animal health products. Our operating segments are distinguished by the ultimate end user of the product—humans or animals. Performance is evaluated based on profit or loss from operations before income taxes. The accounting policies of the individual segments are the same as those described throughout the notes to the consolidated financial statements.

Our human pharmaceutical products segment includes the discovery, development, manufacturing, marketing, and sales of human pharmaceutical products worldwide in the following therapeutic areas: endocrinology, oncology, cardiovascular, neuroscience, immunology, and other. We lost patent exclusivity for the schizophrenia and bipolar mania indications in December 2015 and April 2016, respectively, for Zyprexa^® in Japan. Generic versions of Zyprexa were launched in Japan in June 2016. We lost our patent exclusivity for Strattera^® in the U.S. in May 2017, and generic versions of Strattera were approved in the same month. As described in Note 15, following the settlement related to the compound patent challenge for Effient, generic products launched in the U.S. in the third quarter of 2017. The entry of generic competition into these markets following the loss of effective patent protection has caused a rapid and severe decline in revenue for the affected products. We lost our compound patent protection for Cialis^® (tadalafil) and Adcirca^® (tadalafil) in major European markets in November 2017. We also lost compound patent protection for Cialis and Adcirca in the U.S. in November 2017; however, we now expect U.S. exclusivity for Cialis to end at the earliest in late September 2018.

Our animal health segment, operating through our Elanco animal health division, includes the development, manufacturing, marketing, and sales of animal health products worldwide for both food and companion animals. Animal health products include Rumensin^®, Posilac, Optaflexx^®, Denagard^®, Tylan^®, Maxiban^®, and other products for livestock and poultry, as well as Trifexis^®, Interceptor^®,Comfortis^®, and other products for companion animals. The animal health segment amount for the year ended December 31, 2017 includes the results of operations from BIVIVP, which was acquired on January 3, 2017 (Note 3).

Most of our pharmaceutical products are distributed through wholesalers that serve pharmacies, physicians and other health care professionals, and hospitals. For the years ended December 31, 2017, 2016, and 2015, our three largest wholesalers each accounted for between 9 percent and 18 percent of consolidated total revenue. Further, they each accounted for between 14 percent and 22 percent of accounts receivable as of December 31, 2017 and 2016. Animal health products are sold primarily to wholesale distributors.

We manage our assets on a total company basis, not by operating segment, as the assets of the animal health business are intermixed with those of the pharmaceutical products business. Therefore, our chief operating decision maker does not review any asset information by operating segment and, accordingly, we do not report asset information by operating segment.

We are exposed to the risk of changes in social, political, and economic conditions inherent in foreign operations, and our results of operations and the value of our foreign assets are affected by fluctuations in foreign currency exchange rates.

The following table summarizes our revenue activity:



	2017		2016		2015
Segment revenue—to unaffiliated customers:
Human pharmaceutical products:

Endocrinology:
Humalog^®	$	2,865.2	$	2,768.8	$	2,841.9
Trulicity^®	2,029.8		925.5		248.7
Forteo^®	1,749.0		1,500.0		1,348.3
Humulin^®	1,335.4		1,365.9		1,307.4
Trajenta	537.9		436.6		356.8
Jardiance	447.5		201.9		60.2
Basaglar	432.1		86.1		11.1
Other Endocrinology	688.3		798.0		862.4
Total Endocrinology	10,085.2		8,082.8		7,036.8

Oncology:
Alimta	2,062.5		2,283.3		2,493.1
Cyramza^®	758.3		614.1		383.8
Erbitux	645.9		687.0		485.0
Other Oncology	345.2		137.4		147.9
Total Oncology	3,811.9		3,721.8		3,509.8

Cardiovascular:
Cialis	2,323.1		2,471.6		2,310.7
Effient	388.9		535.2		523.0
Other Cardiovascular	159.1		218.6		234.3
Total Cardiovascular	2,871.1		3,225.4		3,068.0

Neuroscience:
Cymbalta⁽¹⁾	757.2		930.5		1,027.6
Strattera	618.2		854.7		784.0
Zyprexa	581.2		725.3		940.3
Other Neuroscience	214.4		209.8		183.5
Total Neuroscience	2,171.0		2,720.3		2,935.4

Immunology:
Taltz^®	559.2		113.1		—
Other Immunology	45.9		—		—
Total Immunology	605.1		113.1		—

Other human pharmaceutical products	241.3		200.5		227.7
Total human pharmaceutical products	19,785.7		18,063.9		16,777.7
Animal health products	3,085.6		3,158.2		3,181.0
Revenue	$	22,871.3	$	21,222.1	$	19,958.7



	2017			2016			2015
Segment profits:
Human pharmaceutical products	$	5,139.7		$	4,010.0		$	4,026.7
Animal health products	561.3			663.7			597.9
Total segment profits	$	5,701.0		$	4,673.7		$	4,624.6

Reconciliation of total segment profits to consolidated income before taxes:
Segment profits	$	5,701.0		$	4,673.7		$	4,624.6
Other profits (losses):
Amortization of intangible assets (Note 8)	(674.8		)	(683.3		)	(626.2		)
Asset impairment, restructuring, and other special charges (Note 5)	(1,673.6		)	(382.5		)	(367.7		)
Venezuela charge (Note 17)	—			(203.9		)	—
Acquired in-process research and development (Notes 3 and 4)	(1,112.6		)	(30.0		)	(535.0		)
Inventory fair value adjustment related to acquisitions⁽²⁾ (Note 3)	(42.7		)	—			(153.0		)
Debt repurchase charges, net⁽³⁾ (Note 10)	—			—			(152.7		)
Consolidated income before taxes	$	2,197.4		$	3,374.0		$	2,790.0

Numbers may not add due to rounding.

⁽¹⁾Cymbalta revenues benefited from reductions to the reserve for expected product returns of approximately $175 million during the year ended December 31, 2016.

⁽²⁾Inventory fair value adjustments in 2017 and 2015 relate to our acquisitions of BIVIVP and Novartis AH, respectively.

⁽³⁾ We recognized pretax net charges of $152.7 million for the year ended December 31, 2015, attributable to the debt extinguishment loss of $166.7 million from the purchase and redemption of certain fixed-rate notes, partially offset by net gains from non-hedging interest rate swaps and foreign currency transactions associated with the related issuance of euro-denominated notes.

Depreciation and software amortization expense included in our segment profits was as follows:



	2017		2016		2015
Human pharmaceutical products	$	789.8	$	723.4	$	720.7
Animal health products	102.7		89.9		80.8
Total depreciation expense and software amortization included in segment profits	$	892.5	$	813.3	$	801.5

For internal management reporting presented to the chief operating decision maker, certain costs are fully allocated to our human pharmaceutical products segment and therefore are not reflected in the animal health segment's profit. Such items include costs associated with treasury-related financing, global administrative services, certain acquisition-related transaction costs, and certain manufacturing costs.



	2017		2016		2015
Geographic Information
Revenue—to unaffiliated customers⁽¹⁾:
United States	$	12,785.1	$	11,506.2	$	10,097.4
Europe	3,943.2		3,768.1		3,943.6
Japan	2,419.7		2,330.9		2,033.1
Other foreign countries	3,723.3		3,616.9		3,884.6
Revenue	$	22,871.3	$	21,222.1	$	19,958.7

Long-lived assets⁽²⁾:
United States	$	5,013.4	$	4,984.6	$	4,576.8
Europe	2,550.1		2,140.7		2,306.4
Japan	155.1		92.4		89.2
Other foreign countries	1,761.7		1,776.8		1,724.2
Long-lived assets	$	9,480.3	$	8,994.5	$	8,696.6

Numbers may not add due to rounding.

⁽¹⁾Revenue is attributed to the countries based on the location of the customer.

⁽²⁾Long-lived assets consist of property and equipment, net, and certain sundry assets.

Selected Quarterly Data (Unaudited) (Notes)

12 Months Ended

Dec. 31, 2017

Quarterly Financial Information Disclosure [Abstract]

Selected Quarterly Data (Unaudited)

Selected Quarterly Data (unaudited)



2017	Fourth			Third		Second		First
Revenue	$	6,160.7		$	5,658.0	$	5,824.3	$	5,228.3
Cost of sales	1,624.8			1,566.1		1,551.6		1,327.7
Operating expenses⁽¹⁾	3,253.7			2,874.9		2,958.3		2,783.0
Acquired in-process research and development⁽²⁾	50.0			205.0		—		857.6
Asset impairment, restructuring, and other special charges⁽³⁾	1,003.2			406.5		50.0		213.9
Income before income taxes	284.1			591.6		1,260.5		61.2
Income taxes⁽⁴⁾	1,941.0			36.0		252.5		172.0
Net income (loss)	(1,656.9		)	555.6		1,008.0		(110.8		)
Earnings (loss) per share—basic	(1.58		)	0.53		0.96		(0.10		)
Earnings (loss) per share—diluted	(1.58		)	0.53		0.95		(0.10		)
Dividends paid per share	0.52			0.52		0.52		0.52
Common stock closing prices:
High	87.89			85.54		86.25		85.88
Low	81.94			77.07		76.98		74.58

2016	Fourth			Third		Second		First
Revenue	$	5,760.5		$	5,191.7	$	5,404.8	$	4,865.1
Cost of sales	1,466.0			1,400.9		1,465.0		1,323.0
Operating expenses⁽¹⁾	3,240.7			2,801.8		2,958.5		2,694.9
Acquired in-process research and development	30.0			—		—		—
Asset impairment, restructuring, and other special charges	147.6			45.5		58.0		131.4
Income before income taxes	892.0			970.7		944.5		566.8
Income taxes	120.2			192.7		196.8		126.7
Net income	771.8			778.0		747.7		440.1
Earnings per share—basic	0.73			0.74		0.71		0.42
Earnings per share—diluted	0.73			0.73		0.71		0.41
Dividends paid per share	0.51			0.51		0.51		0.51
Common stock closing prices:
High	83.06			83.40		78.75		84.11
Low	65.97			76.85		72.57		69.06

⁽¹⁾Includes research and development and marketing, selling, and administrative expenses.

⁽²⁾Acquired IPR&D charges in the first quarter were due to the CoLucid acquisition. See Note 3 for further discussion.

⁽³⁾Asset impairment, restructuring, and other special charges in the third quarter were primarily from asset impairments related to lower projected revenue for Posilac (rbST). In the fourth quarter, restructuring charges were primarily due to severance costs resulting from the U.S. voluntary early retirement program. See Note 5 for further discussion.

⁽⁴⁾Income taxes in the fourth quarter were due to the provisional charge resulting from the 2017 Tax Act. See Note 13 for further discussion.

Our common stock is listed on the New York Stock Exchange (NYSE) and the NYSE Euronext.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Cash and Cash Equivalents, Policy

We consider all highly liquid investments with a maturity of three months or less from the date of purchase to be cash equivalents. The cost of these investments approximates fair value.

Inventory

Investment

Derivatives

Goodwill and Intangible Assets

For transactions other than a business combination, we capitalize milestone payments incurred at or after the product has obtained regulatory approval for marketing.

The costs of acquired IPR&D projects acquired directly in a transaction other than a business combination are capitalized if the projects have an alternative future use; otherwise, they are expensed immediately. The fair values of acquired IPR&D projects acquired in business combinations are capitalized as other intangible assets.

Property, Plant and Equipment

Commitments and Contingencies

Litigation accruals, environmental liabilities, and the related estimated insurance recoverables are reflected on a gross basis as liabilities and assets, respectively, on our consolidated balance sheets. With respect to the product liability claims currently asserted against us, we have accrued for our estimated exposures to the extent they are both probable and reasonably estimable based on the information available to us. We accrue for certain product liability claims incurred but not filed to the extent we can formulate a reasonable estimate of their costs. We estimate these expenses based primarily on historical claims experience and data regarding product usage. Legal defense costs expected to be incurred in connection with significant product liability loss contingencies are accrued when both probable and reasonably estimable.

Revenue Recognition

Revenue recognition

Profit-sharing due from our collaboration partners, which is based upon gross margins reported to us by our partners, is recognized as collaboration and other revenue as earned.

Research and Development Expense

Research and development expenses and acquired in-process research and development

Research and development expenses include the following:


•	Research and development costs, which are expensed as incurred.


•	Milestone payment obligations incurred prior to regulatory approval of the product, which are accrued when the event requiring payment of the milestone occurs.

Income Tax

Deferred taxes are recognized for the future tax effects of temporary differences between financial and income tax reporting based on enacted tax laws and rates.

Earnings Per Share

Earnings per share

Share-based Compensation, Option and Incentive Plans

We recognize the fair value of stock-based compensation as expense over the requisite service period of the individual grantees, which generally equals the vesting period. We provide newly issued shares of our common stock and treasury stock to satisfy the issuance of PA, SVA, and RSU shares.

Foreign Currency Transactions and Translations

Foreign Currency Translation

New Accounting Pronouncements, Policy [Policy Text Block]

The following table provides a brief description of accounting standards that had not yet been adopted as of December 31, 2017 and could have a material effect on our financial statements:



Standard	Description	Effective Date	Effect on the financial statements or other significant matters
Accounting Standards Update 2014-09 and various other related updates, Revenue from Contracts with Customers	This standard replaced existing revenue recognition standards and requires entities to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. An entity can apply the new revenue standard retrospectively to each prior reporting period presented or with the cumulative effect of initially applying the standard recognized at the date of initial application in retained earnings. We applied the latter approach.	This standard was effective January 1, 2018, and we adopted on that date.	Our evaluation of our contracts subject to this standard is complete and we do not expect the application of the new standard to these contracts to have a material impact to our consolidated statements of operations or balance sheets at initial implementation. We are also evaluating the new disclosures required by the standard to determine what additional information will need to be disclosed.
Accounting Standards Update 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities	This standard requires entities to recognize changes in the fair value of equity investments with readily determinable fair values in net income (except for investments accounted for under the equity method of accounting or those that result in consolidation of the investee). An entity should apply the new standard through a cumulative effect adjustment to retained earnings as of the beginning of the fiscal year of adoption.	This standard was effective January 1, 2018, and we adopted on that date.	We will reclassify from accumulated other comprehensive income the after-tax amount of net unrealized gains resulting in an increase to retained earnings of approximately $105 million.



Standard	Description	Effective Date	Effect on the financial statements or other significant matters
Accounting Standards Update 2016-02, Leases	This standard was issued to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities, including leases classified as operating leases under current GAAP, on the balance sheet and requiring additional disclosures about leasing arrangements. This standard requires a modified retrospective approach to adoption.	This standard is effective January 1, 2019, with early adoption permitted. We intend to adopt this standard on January 1, 2019.	We are in the process of determining the impact on our consolidated financial statements. We have selected a software solution to be compatible with our enterprise software system. Development of our selected solution is ongoing, as it is not yet fully compliant with the requirements of the standard. The timely readiness of the lease software system is critical to ensure an efficient and effective adoption of the standard.
Accounting Standards Update 2016-16, Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory	This standard requires entities to recognize the income tax consequences of intra-entity transfers of assets other than inventory at the time of transfer. This standard requires a modified retrospective approach to adoption.	This standard was effective January 1, 2018, and we adopted on that date.	We currently estimate that the cumulative effect of initially applying the standard will result in an increase to deferred tax assets and retained earnings of approximately $2.5 billion.

Inventories (Policies)	12 Months Ended
Inventories (Policies)	Dec. 31, 2017
Inventory Disclosure [Abstract]
Inventory	We state all inventories at the lower of cost or market. We use the last-in, first-out (LIFO) method for the majority of our inventories located in the continental U.S. Other inventories are valued by the first-in, first-out (FIFO) method. FIFO cost approximates current replacement cost.

Financial Instruments (Policies)	12 Months Ended
Financial Instruments (Policies)	Dec. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Concentration Risk, Credit Risk, Policy	Financial instruments that potentially subject us to credit risk consist principally of trade receivables and interest-bearing investments. Wholesale distributors of life-science products account for a substantial portion of our trade receivables; collateral is generally not required. The risk associated with this concentration is mitigated by our ongoing credit-review procedures and insurance. A large portion of our cash is held by a few major financial institutions. We monitor our exposures with these institutions and do not expect any of these institutions to fail to meet their obligations. Major financial institutions represent the largest component of our investments in corporate debt securities. In accordance with documented corporate risk-management policies, we monitor the amount of credit exposure to any one financial institution or corporate issuer. We are exposed to credit-related losses in the event of nonperformance by counterparties to risk-management instruments but do not expect any counterparties to fail to meet their obligations given their high credit ratings.
Derivatives	We may enter into forward contracts and designate them as cash flow hedges to limit the potential volatility of earnings and cash flow associated with forecasted sales of available-for-sale securities. We also may enter into forward-starting interest rate swaps, which we designate as cash flow hedges, as part of any anticipated future debt issuances in order to reduce the risk of cash flow volatility from future changes in interest rates. Upon completion of a debt issuance and termination of the swap, the change in fair value of these instruments is recorded as part of other comprehensive income (loss) and is amortized to interest expense over the life of the underlying debt. Our derivative activities are initiated within the guidelines of documented corporate risk-management policies and offset losses and gains on the assets, liabilities, and transactions being hedged. Management reviews the correlation and effectiveness of our derivatives on a quarterly basis. For derivative instruments that are designated and qualify as fair value hedges, the derivative instrument is marked to market with gains and losses recognized currently in income to offset the respective losses and gains recognized on the underlying exposure. For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of gains and losses is reported as a component of AOCL and reclassified into earnings in the same period the hedged transaction affects earnings. For derivative and non-derivative instruments that are designated and qualify as net investment hedges, the effective portion of foreign currency translation gains or losses due to spot rate fluctuations are reported as a component of AOCL. Hedge ineffectiveness is immediately recognized in earnings. Derivative contracts that are not designated as hedging instruments are recorded at fair value with the gain or loss recognized in current earnings during the period of change. We may enter into foreign currency forward or option contracts to reduce the effect of fluctuating currency exchange rates (principally the euro, British pound, and the Japanese yen). Foreign currency derivatives used for hedging are put in place using the same or like currencies and duration as the underlying exposures. Forward and option contracts are principally used to manage exposures arising from subsidiary trade and loan payables and receivables denominated in foreign currencies. These contracts are recorded at fair value with the gain or loss recognized in other–net, (income) expense. We may enter into foreign currency forward and option contracts and currency swaps as fair value hedges of firm commitments. In the normal course of business, our operations are exposed to fluctuations in interest rates which can vary the costs of financing, investing, and operating. We address a portion of these risks through a controlled program of risk management that includes the use of derivative financial instruments. The objective of controlling these risks is to limit the impact of fluctuations in interest rates on earnings. Our primary interest-rate risk exposure results from changes in short-term U.S. dollar interest rates. In an effort to manage interest-rate exposures, we strive to achieve an acceptable balance between fixed- and floating-rate debt and investment positions and may enter into interest rate swaps or collars to help maintain that balance. Interest rate swaps or collars that convert our fixed-rate debt to a floating rate are designated as fair value hedges of the underlying instruments. Interest rate swaps or collars that convert floating-rate debt to a fixed rate are designated as cash flow hedges. Interest expense on the debt is adjusted to include the payments made or received under the swap agreements. Cash proceeds from or payments to counterparties resulting from the termination of interest rate swaps are classified as operating activities in our consolidated statements of cash flows.
Cash and Cash Equivalents, Policy	We consider all highly liquid investments with a maturity of three months or less from the date of purchase to be cash equivalents. The cost of these investments approximates fair value.
Investment	Substantially all of our investments in debt and marketable equity securities are classified as available-for-sale. Investment securities with maturity dates of less than one year from the date of the balance sheet are classified as short-term. Available-for-sale securities are carried at fair value with the unrealized gains and losses, net of tax, reported in other comprehensive income (loss). The credit portion of unrealized losses on our debt securities considered to be other-than-temporary is recognized in earnings. The remaining portion of the other-than-temporary impairment on our debt securities is then recorded, net of tax, in other comprehensive income (loss). The entire amount of other-than-temporary impairment on our equity securities is recognized in earnings. We do not evaluate cost-method investments for impairment unless there is an indicator of impairment. We review these investments for indicators of impairment on a regular basis. Investments in companies over which we have significant influence but not a controlling interest are accounted for using the equity method with our share of earnings or losses reported in other–net, (income) expense. We own no investments that are considered to be trading securities.

Disclosure of accounting policy for investments in financial assets, including marketable securities (debt and equity securities with readily determinable fair values), investments accounted for under the equity method and cost method, securities borrowed and loaned, and repurchase and resale agreements. For marketable securities, the disclosure may include the entity's accounting treatment for transfers between investment categories and how the fair values for such securities are determined. Also, for all investments, an entity may describe its policy for assessing, recognizing and measuring impairment of the investment.

Goodwill and Other Intangibles (Policies)	12 Months Ended
Goodwill and Other Intangibles (Policies)	Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Goodwill results from excess consideration in a business combination over the fair value of identifiable net assets acquired. Goodwill is not amortized but is reviewed for impairment at least annually and when impairment indicators are present. When required, a comparison of the fair value of the reporting unit to its carrying amount including goodwill is used to determine the amount of any impairment. For transactions other than a business combination, we capitalize milestone payments incurred at or after the product has obtained regulatory approval for marketing. Other indefinite-lived intangible assets are reviewed for impairment at least annually and when impairment indicators are present. Finite-lived intangible assets are reviewed for impairment when an indicator of impairment is present. When required, a comparison of fair value to the carrying amount of assets is performed to determine the amount of any impairment. When determining the fair value of indefinite-lived acquired IPR&D as well as the fair value of finite-lived intangible assets for impairment testing purposes, we utilize the "income method" discussed above. The costs of acquired IPR&D projects acquired directly in a transaction other than a business combination are capitalized if the projects have an alternative future use; otherwise, they are expensed immediately. The fair values of acquired IPR&D projects acquired in business combinations are capitalized as other intangible assets. Several methods may be used to determine the estimated fair value of other intangibles acquired in a business combination. We utilize the “income method,” which is a Level 3 fair value measurement and applies a probability weighting that considers the risk of development and commercialization to the estimated future net cash flows that are derived from projected revenues and estimated costs. These projections are based on factors such as relevant market size, patent protection, historical pricing of similar products, and expected industry trends. The estimated future net cash flows are then discounted to the present value using an appropriate discount rate. This analysis is performed for each asset independently. The acquired IPR&D assets are treated as indefinite-lived intangible assets until completion or abandonment of the projects, at which time the assets are tested for impairment and amortized over the remaining useful life or written off, as appropriate.

Property and Equipment (Policies)	12 Months Ended
Property and Equipment (Policies)	Dec. 31, 2017
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	Property and equipment is stated on the basis of cost. Provisions for depreciation of buildings and equipment are computed generally by the straight-line method at rates based on their estimated useful lives (12 to 50 years for buildings and 3 to 25 years for equipment). We review the carrying value of long-lived assets for potential impairment on a periodic basis and whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. Impairment is determined by comparing projected undiscounted cash flows to be generated by the asset to its carrying value. If an impairment is identified, a loss is recorded equal to the excess of the asset’s net book value over its fair value, and the cost basis is adjusted.

Stock-Based Compensation (Policies)	12 Months Ended
Stock-Based Compensation (Policies)	Dec. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-based Compensation, Option and Incentive Plans	We recognize the fair value of stock-based compensation as expense over the requisite service period of the individual grantees, which generally equals the vesting period. We provide newly issued shares of our common stock and treasury stock to satisfy the issuance of PA, SVA, and RSU shares.

Income Taxes (Policies)	12 Months Ended
Income Taxes (Policies)	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Income Tax	Deferred taxes are recognized for the future tax effects of temporary differences between financial and income tax reporting based on enacted tax laws and rates. We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate resolution.

Disclosure of accounting policy for income taxes, which may include its accounting policies for recognizing and measuring deferred tax assets and liabilities and related valuation allowances, recognizing investment tax credits, operating loss carryforwards, tax credit carryforwards, and other carryforwards, methodologies for determining its effective income tax rate and the characterization of interest and penalties in the financial statements.

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Contingencies (Policies)	12 Months Ended
Contingencies (Policies)	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Litigation accruals, environmental liabilities, and the related estimated insurance recoverables are reflected on a gross basis as liabilities and assets, respectively, on our consolidated balance sheets. With respect to the product liability claims currently asserted against us, we have accrued for our estimated exposures to the extent they are both probable and reasonably estimable based on the information available to us. We accrue for certain product liability claims incurred but not filed to the extent we can formulate a reasonable estimate of their costs. We estimate these expenses based primarily on historical claims experience and data regarding product usage. Legal defense costs expected to be incurred in connection with significant product liability loss contingencies are accrued when both probable and reasonably estimable.

Implementation of New Financial Accounting Pronouncements Implementation of New Financial Accounting Pronouncements (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

The following table provides a brief description of accounting standards that had not yet been adopted as of December 31, 2017 and could have a material effect on our financial statements:



Standard	Description	Effective Date	Effect on the financial statements or other significant matters
Accounting Standards Update 2014-09 and various other related updates, Revenue from Contracts with Customers	This standard replaced existing revenue recognition standards and requires entities to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. An entity can apply the new revenue standard retrospectively to each prior reporting period presented or with the cumulative effect of initially applying the standard recognized at the date of initial application in retained earnings. We applied the latter approach.	This standard was effective January 1, 2018, and we adopted on that date.	Our evaluation of our contracts subject to this standard is complete and we do not expect the application of the new standard to these contracts to have a material impact to our consolidated statements of operations or balance sheets at initial implementation. We are also evaluating the new disclosures required by the standard to determine what additional information will need to be disclosed.
Accounting Standards Update 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities	This standard requires entities to recognize changes in the fair value of equity investments with readily determinable fair values in net income (except for investments accounted for under the equity method of accounting or those that result in consolidation of the investee). An entity should apply the new standard through a cumulative effect adjustment to retained earnings as of the beginning of the fiscal year of adoption.	This standard was effective January 1, 2018, and we adopted on that date.	We will reclassify from accumulated other comprehensive income the after-tax amount of net unrealized gains resulting in an increase to retained earnings of approximately $105 million.



Standard	Description	Effective Date	Effect on the financial statements or other significant matters
Accounting Standards Update 2016-02, Leases	This standard was issued to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities, including leases classified as operating leases under current GAAP, on the balance sheet and requiring additional disclosures about leasing arrangements. This standard requires a modified retrospective approach to adoption.	This standard is effective January 1, 2019, with early adoption permitted. We intend to adopt this standard on January 1, 2019.	We are in the process of determining the impact on our consolidated financial statements. We have selected a software solution to be compatible with our enterprise software system. Development of our selected solution is ongoing, as it is not yet fully compliant with the requirements of the standard. The timely readiness of the lease software system is critical to ensure an efficient and effective adoption of the standard.
Accounting Standards Update 2016-16, Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory	This standard requires entities to recognize the income tax consequences of intra-entity transfers of assets other than inventory at the time of transfer. This standard requires a modified retrospective approach to adoption.	This standard was effective January 1, 2018, and we adopted on that date.	We currently estimate that the cumulative effect of initially applying the standard will result in an increase to deferred tax assets and retained earnings of approximately $2.5 billion.

Acquisitions Acquisitions (Tables)

12 Months Ended

Dec. 31, 2017

Business Combinations [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

The following table summarizes the amounts recognized for assets acquired and liabilities assumed as of the acquisition date:



Estimated Fair Value at January 1, 2015
Inventories	$	380.2
Acquired in-process research and development	298.0
Marketed products⁽¹⁾	1,953.0
Property and equipment	199.9
Assets held for sale (primarily the U.S. Sentinel rights)	422.7
Accrued retirement benefits	(108.7		)
Deferred income taxes	(60.1		)
Other assets and liabilities - net	(73.0		)
Total identifiable net assets	3,012.0
Goodwill⁽²⁾	2,271.1
Total consideration transferred - net of cash acquired	$	5,283.1

The following table summarizes the amounts recognized for assets acquired and liabilities assumed as of the acquisition date:



Estimated Fair Value at January 3, 2017
Inventories	$	108.6
Marketed products⁽¹⁾	297.0
Property and equipment	148.2
Other assets and liabilities - net	8.2
Total identifiable net assets	562.0
Goodwill⁽²⁾	320.1
Total consideration transferred - net of cash acquired	$	882.1

Schedule of Research and Development Assets Acquired Other than Through Business Combination

The following table and narrative summarizes our asset acquisitions during 2017, 2016, and 2015.



Counterparty	Compound(s) or Therapy	Acquisition Month	Phase of Development⁽¹⁾	Acquired IPR&D Expense
CoLucid Pharmaceuticals, Inc. (CoLucid)	Oral therapy for the acute treatment of migraine - lasmiditan	March 2017	Phase III	$	857.6
KeyBioscience AG (KeyBioscience)	Multiple molecules for treatment of metabolic disorders	July 2017	Phase II	55.0
Nektar Therapeutics (Nektar)	Immunological therapy - NKTR-358	August 2017	Phase I	150.0
CureVac AG (CureVac)	Cancer vaccines	November 2017	Pre-clinical	50.0

AstraZeneca	Antibody selective for amyloid-beta 42 (Aβ42) - MEDI1814	December 2016	Phase I	30.0

Innovent Biologics, Inc. (Innovent)	Monoclonal antibody targeting protein CD-20 Immuno-oncology molecule cMet monoclonal antibody	March 2015	Pre-clinical⁽²⁾	56.0
Hanmi Pharmaceutical Co., Ltd. (Hanmi)	BTK Inhibitor - HM71224	April 2015	Phase I	50.0
BioNTech AG (BioNTech)	Cancer immunotherapies	May 2015	Pre-clinical	30.0
Locemia Solutions	Intranasal glucagon	October 2015	Phase III	149.0
Undisclosed	Technology collaboration	December 2015	N/A	25.0
Halozyme Therapeutics, Inc. (Halozyme)	Recombinant human hyaluronidase enzyme - rHuPH20	December 2015	N/A	25.0

⁽¹⁾The phase of development presented is as of the date of the arrangement and represents the phase of development of the most advanced asset acquired, where applicable.

⁽²⁾Prior to acquisition, Innovent's monoclonal antibody targeting protein CD-20 had received investigational new drug approval in China to begin Phase I development.

Collaborations (Tables)

12 Months Ended

Dec. 31, 2017

Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

The following table summarizes the amounts recognized for assets acquired and liabilities assumed as of the acquisition date:



Estimated Fair Value at January 1, 2015
Inventories	$	380.2
Acquired in-process research and development	298.0
Marketed products⁽¹⁾	1,953.0
Property and equipment	199.9
Assets held for sale (primarily the U.S. Sentinel rights)	422.7
Accrued retirement benefits	(108.7		)
Deferred income taxes	(60.1		)
Other assets and liabilities - net	(73.0		)
Total identifiable net assets	3,012.0
Goodwill⁽²⁾	2,271.1
Total consideration transferred - net of cash acquired	$	5,283.1

The following table summarizes the amounts recognized for assets acquired and liabilities assumed as of the acquisition date:



Estimated Fair Value at January 3, 2017
Inventories	$	108.6
Marketed products⁽¹⁾	297.0
Property and equipment	148.2
Other assets and liabilities - net	8.2
Total identifiable net assets	562.0
Goodwill⁽²⁾	320.1
Total consideration transferred - net of cash acquired	$	882.1

Erbitux Acquisition

Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

The following table summarizes the amounts recognized for assets acquired and liabilities assumed as of the acquisition date:



Estimated Fair Value at October 1, 2015
Marketed products⁽¹⁾	$	602.1
Deferred tax asset	232.2
Deferred tax liability	(228.2		)
Other assets and liabilities - net	57.2
Total identifiable net assets	$	663.3
Total consideration - contingent consideration liability⁽²⁾	$	(663.3	)

⁽²⁾See Note 7 for discussion on the estimation of the contingent consideration liability.

Diabetes Collaboration

Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]

Schedule of Collaborative Arrangements and Non-collaborative Arrangement Transactions [Table Text Block]

The table below summarizes significant regulatory and commercialization events and milestones (deferred) capitalized for the compounds included in this collaboration:



Product Family	Year Launched			Milestones (Deferred) Capitalized⁽¹⁾
Product Family	U.S.	Europe	Japan	Year	Amount
Trajenta⁽²⁾	2011	2011	2011	Cumulative⁽⁴⁾- all prior to 2015	$	446.4
Jardiance⁽³⁾	2014	2014	2015	Cumulative⁽⁴⁾ - all prior to 2015	299.5
Basaglar	2016	2015	2015	2017	—
				2016	(187.5		)
				2015	—
				Cumulative⁽⁴⁾	(250.0		)

⁽²⁾Jentadueto is included in the Trajenta family of product results.

⁽³⁾Glyxambi and Synjardyare included in the Jardiance family of product results.

⁽⁴⁾The cumulative amount represents the total initial amounts that were (deferred) or capitalized from the start of this collaboration through the end of the reporting period.



	2017		2016		2015
Trajenta	$	537.9	$	436.6	$	356.8
Jardiance	447.5		201.9		60.2
Basaglar	432.1		86.1		11.1

Erbitux

Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]

Schedule of Collaborative Arrangements and Non-collaborative Arrangement Transactions [Table Text Block]

The following table summarizes our revenue recognized with respect to Erbitux:



	2017		2016		2015
Net product revenue - BMS	$	—	$	—	$	23.3
Net product revenue - third party	548.2		587.0		152.3
Collaboration and other revenue	97.7		100.0		309.4
Revenue	$	645.9	$	687.0	$	485.0

Effient

Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]

Schedule of Collaborative Arrangements and Non-collaborative Arrangement Transactions [Table Text Block]



Territory	Marketing Rights	Selling Party
U.S.	Co-promotion	Lilly
Major European markets	Co-promotion	Pre-January 1, 2016, Lilly Post-January 1, 2016, Daiichi Sankyo
Japan	Exclusive	Daiichi Sankyo

The following table summarizes our revenue recognized with respect to Effient:



	2017		2016		2015
Revenue	$	388.9	$	535.2	$	523.0

Collaborative Arrangement

Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]

Schedule of Collaborative Arrangements and Non-collaborative Arrangement Transactions [Table Text Block]

The following table summarizes our collaboration and other revenue, which is included in revenue in the consolidated statements of operations:



	2017		2016		2015
Collaboration and other revenue	$	1,199.9	$	833.7	$	808.1

Asset Impairments, Restructuring, and Other Special Charges (Tables)

12 Months Ended

Dec. 31, 2017

Restructuring and Related Activities [Abstract]

Schedule of Other Operating Cost and Expense, by Component

The components of the charges included in asset impairment, restructuring, and other special charges in our consolidated statements of operations are described below.



	2017		2016			2015
Severance:
Human pharmaceutical products	$	601.0	$	85.9		$	81.5
Animal health products	96.4		40.8			59.5
Total severance	697.4		126.7			141.0
Pension and post-retirement medical charges associated with U.S. early retirement program (see Note 14):
Human pharmaceutical products	446.7		—			—
Animal health products	67.0		—			—
Total pension and post-retirement medical charges associated with U.S. early retirement program	513.7		—			—
Asset impairment (gains from facility sales) and other special charges:
Human pharmaceutical products	81.7		(13.0		)	24.6
Animal health products	380.8		268.8			202.1
Total asset impairment and other special charges	462.5		255.8			226.7
Total asset impairment, restructuring, and other special charges	$	1,673.6	$	382.5		$	367.7

Inventories (Tables)

12 Months Ended

Dec. 31, 2017

Inventory Disclosure [Abstract]

Schedule of Inventory

Inventories at December 31 consisted of the following:



	2017		2016
Finished products	$	1,211.4	$	987.3
Work in process	2,697.7		2,117.2
Raw materials and supplies	488.8		435.3
Total (approximates replacement cost)	4,397.9		3,539.8
Increase to LIFO cost	60.4		22.1
Inventories	$	4,458.3	$	3,561.9

Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss)

The effective portion of risk-management instruments that was recognized in other comprehensive income (loss) is as follows:



	2017		2016		2015
Cash flow hedges:
Forward-starting interest rate swaps	13.0		(3.4	)	(56.7	)
Net investment hedges:
Foreign currency-denominated notes	(361.5	)	137.5		—
Cross-currency interest rate swaps	(126.6	)	32.5		—
Foreign currency exchange contracts	—		31.9		—

Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis

The table below summarizes the contractual maturities of our investments in debt securities measured at fair value as of December 31, 2017:



	Maturities by Period
	Total		Less Than 1 Year		1-5 Years		6-10 Years		More Than 10 Years
Fair value of debt securities	$	6,174.9	$	1,494.3	$	4,200.8	$	199.0	$	280.8

Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location

The following effects of risk-management instruments were recognized in other–net, (income) expense:



	2017			2016			2015
Fair value hedges:
Effect from hedged fixed-rate debt	$	(14.1	)	$	(30.8	)	$	(11.9	)
Effect from interest rate contracts	14.1			30.8			11.9
Cash flow hedges:
Effective portion of losses on interest rate contracts reclassified from accumulated other comprehensive loss	14.8			15.0			13.7
Net (gains) losses on foreign currency exchange contracts not designated as hedging instruments	97.9			78.8			(28.2		)

Fair Value, Assets Measured on Recurring Basis



					Fair Value Measurements Using
Description	Carrying Amount		Cost⁽¹⁾		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value
December 31, 2017
Cash equivalents	$	4,763.9	$	4,763.9	$	4,712.4	$	51.5	$	—	$	4,763.9
Short-term investments:
U.S. government and agency securities	$	217.8	$	218.2	$	217.8	$	—	$	—	$	217.8
Corporate debt securities	1,182.3		1,183.2		—		1,182.3		—		1,182.3
Asset-backed securities	94.2		94.3		—		94.2		—		94.2
Other securities	3.6		3.6		—		3.6		—		3.6
Short-term investments	$	1,497.9
Noncurrent investments:
U.S. government and agency securities	$	360.0	$	365.0	$	360.0	$	—	$	—	$	360.0
Corporate debt securities	3,464.3		3,473.5		—		3,464.3		—		3,464.3
Mortgage-backed securities	202.4		204.2		—		202.4		—		202.4
Asset-backed securities	653.9		656.0		—		653.9		—		653.9
Other securities	132.1		66.4		—		—		132.1		132.1
Marketable equity securities	281.3		131.0		281.3		—		—		281.3
Cost and equity method investments⁽²⁾	584.8
Noncurrent investments	$	5,678.8

December 31, 2016
Cash equivalents	$	2,986.8	$	2,986.8	$	2,699.4	$	287.4	$	—	$	2,986.8
Short-term investments:
U.S. government and agency securities	$	232.5	$	232.6	$	232.5	$	—	$	—	$	232.5
Corporate debt securities	1,219.2		1,219.1		—		1,219.2		—		1,219.2
Asset-backed securities	4.3		4.3		—		4.3		—		4.3
Other securities	0.5		0.5		—		0.5		—		0.5
Short-term investments	$	1,456.5
Noncurrent investments:
U.S. government and agency securities	$	318.9	$	323.8	$	318.9	$	—	$	—	$	318.9
Corporate debt securities	3,062.2		3,074.3		—		3,062.2		—		3,062.2
Mortgage-backed securities	183.1		185.4		—		183.1		—		183.1
Asset-backed securities	502.7		503.5		—		502.7		—		502.7
Other securities	153.7		77.6		—		—		153.7		153.7
Marketable equity securities	418.2		91.9		418.2		—		—		418.2
Cost and equity method investments⁽²⁾	568.7
Noncurrent investments	$	5,207.5

⁽¹⁾For available-for-sale debt securities, amounts disclosed represent the securities' amortized cost.

⁽²⁾Fair value disclosures are not applicable for cost method and equity method investments.

Fair Value, Liabilities Measured on Recurring Basis



				Fair Value Measurements Using
Description	Carrying Amount			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Fair Value
Short-term commercial paper borrowings
December 31, 2017	$	(2,696.8	)	$	—	$	(2,690.6	)	$	—	$	(2,690.6	)
December 31, 2016	(1,299.3		)	—		(1,299.3		)	—		(1,299.3		)

Long-term debt, including current portion
December 31, 2017	$	(10,950.3	)	$	—	$	(11,529.9	)	$	—	$	(11,529.9	)
December 31, 2016	(9,005.9		)	—		(9,419.1		)	—		(9,419.1		)

Fair Value, by Balance Sheet Grouping



				Fair Value Measurements Using
Description	Carrying Amount			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Fair Value
December 31, 2017
Risk-management instruments
Interest rate contracts designated as fair value hedges:
Other receivables	$	0.8		$	—	$	0.8		$	—		$	0.8
Sundry	35.1			—		35.1			—			35.1
Other current liabilities	(0.2		)	—		(0.2		)	—			(0.2		)
Other noncurrent liabilities	(10.5		)	—		(10.5		)	—			(10.5		)
Cross-currency interest rate contracts designated as net investment hedges:
Other current liabilities	(33.4		)	—		(33.4		)	—			(33.4		)
Other noncurrent liabilities	(26.0		)	—		(26.0		)	—			(26.0		)
Foreign exchange contracts not designated as hedging instruments:
Other receivables	26.8			—		26.8			—			26.8
Other current liabilities	(36.0		)	—		(36.0		)	—			(36.0		)
Contingent consideration liabilities⁽¹⁾:
Other current liabilities	(208.0		)	—		—			(208.0		)	(208.0		)
Other noncurrent liabilities	(45.2		)	—		—			(45.2		)	(45.2		)

December 31, 2016
Risk-management instruments
Interest rate contracts designated as fair value hedges:
Other receivables	$	2.4		$	—	$	2.4		$	—		$	2.4
Sundry	37.0			—		37.0			—			37.0
Other noncurrent liabilities	(0.5		)	—		(0.5		)	—			(0.5		)
Cross-currency interest rate contracts designated as net investment hedges:
Sundry	31.4			—		31.4			—			31.4
Foreign exchange contracts not designated as hedging instruments:
Other receivables	31.8			—		31.8			—			31.8
Other current liabilities	(21.7		)	—		(21.7		)	—			(21.7		)
Contingent consideration liabilities⁽¹⁾:
Other current liabilities	(215.9		)	—		—			(215.9		)	(215.9		)
Other noncurrent liabilities	(242.6		)	—		—			(242.6		)	(242.6		)

⁽¹⁾Contingent consideration liabilities primarily relate to the Erbitux arrangement with BMS discussed in Note 4.

Available-for-sale Securities

A summary of the fair value of available-for-sale securities in an unrealized gain or loss position and the amount of unrealized gains and losses (pretax) in AOCL follows:



	2017		2016
Unrealized gross gains	$	184.7	$	352.6
Unrealized gross losses	47.5		34.1
Fair value of securities in an unrealized gain position	1,434.2		1,869.7
Fair value of securities in an unrealized loss position	4,692.8		3,262.3

Gain (Loss) on Investments

Activity related to our investment portfolio, substantially all of which related to available-for-sale securities, was as follows:



	2017		2016		2015
Proceeds from sales	$	5,769.3	$	3,240.5	$	4,733.3
Realized gross gains on sales	176.0		30.7		255.1
Realized gross losses on sales	5.8		14.6		10.3

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

Tabular disclosure of the realized and unrealized gains and losses reported in the statement of income which have resulted from the sale and holding of marketable securities, respectively, as well as the sale or disposal of cost method investments. Such amounts would include realized gains and losses on the sale or disposal of trading, available-for-sale, and held-to-maturity securities, unrealized gains and losses on trading securities, unrealized gains and losses on available-for-sale and held-to-maturity securities transferred to the trading securities category, realized gains and losses on the sale or disposal of cost method investments, and losses recognized for other than temporary impairments (OTTI) of such investments.

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangibles (Tables)

12 Months Ended

Dec. 31, 2017

Finite-lived Intangible Assets Amortization Expense

Amortization expense related to finite-lived intangible assets was as follows:



	2017		2016		2015
Amortization expense	$	683.4	$	687.9	$	631.8

Schedule of Indefinite-Lived Intangible Assets

Goodwill by segment at December 31 was as follows:



	2017		2016
Human pharmaceutical products	$	1,366.8	$	1,366.4
Animal health	3,003.3		2,606.3
Total goodwill	$	4,370.1	$	3,972.7

Schedule of Intangible Assets and Goodwill

The components of intangible assets other than goodwill at December 31 were as follows:



	2017							2016
Description	Carrying Amount, Gross		Accumulated Amortization			Carrying Amount, Net		Carrying Amount, Gross		Accumulated Amortization			Carrying Amount, Net
Finite-lived intangible assets:
Marketed products	$	7,682.0	$	(3,851.1	)	$	3,830.9	$	7,400.2	$	(3,301.4	)	$	4,098.8
Other	171.2		(70.1		)	101.1		150.7		(71.8		)	78.9
Total finite-lived intangible assets	7,853.2		(3,921.2		)	3,932.0		7,550.9		(3,373.2		)	4,177.7
Indefinite-lived intangible assets:
Acquired in-process research and development	97.2		—			97.2		180.2		—			180.2
Other intangibles	$	7,950.4	$	(3,921.2	)	$	4,029.2	$	7,731.1	$	(3,373.2	)	$	4,357.9

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

The estimated amortization expense for each of the next five years associated with our finite-lived intangible assets as of December 31, 2017 is as follows:



	2018		2019		2020		2021		2022
Estimated amortization expense	$	558.2	$	352.2	$	350.7	$	349.0	$	336.2

Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2017

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

At December 31, property and equipment consisted of the following:



	2017			2016
Land	$	192.7		$	197.6
Buildings	7,425.6			6,917.8
Equipment	8,689.0			7,864.7
Construction in progress	1,783.8			1,797.5
	18,091.1			16,777.6
Less accumulated depreciation	(9,264.6		)	(8,525.0		)
Property and equipment, net	$	8,826.5		$	8,252.6

Schedule of Rent Expense

Depreciation expense related to property and equipment and rental expense for all leases, including contingent rentals (not material), was as follows:



	2017		2016		2015
Depreciation expense	$	763.1	$	716.2	$	717.6
Rental expense	224.5		221.0		225.7

Schedule of Future Minimum Rental Payments for Operating Leases

The future minimum rental commitments under non-cancelable operating leases are as follows:



	2018		2019		2020		2021		2022		After 2022
Lease commitments	$	130.8	$	119.2	$	105.7	$	94.7	$	77.1	$	245.7

Borrowings (Tables)

12 Months Ended

Dec. 31, 2017

Long-term Debt, Current and Noncurrent [Abstract]

Schedule of Additional Borrowings Disclosures

The aggregate amount of cash payments for interest on borrowings, net of capitalized interest, are as follows:



	2017		2016		2015
Cash payments for interest on borrowings	$	192.7	$	146.4	$	129.6

Schedule of Maturities of Long-term Debt

The aggregate amounts of maturities on long-term debt for the next five years are as follows:



	2018		2019		2020		2021		2022
Maturities on long-term debt	$	1,008.8	$	604.0	$	2.7	$	1.4	$	1,467.4

Schedule of Debt

Debt at December 31 consisted of the following:



	2017			2016
Short-term commercial paper borrowings	$	2,696.8		$	1,299.3
0.00 to 7.13 percent long-term notes (due 2018-2047)	10,756.7			8,776.5
Other long-term debt, including capitalized leases	13.6			14.4
Unamortized debt issuance costs	(49.0		)	(37.5		)
Fair value adjustment on hedged long-term notes	229.0			252.5
Total debt	13,647.1			10,305.2
Less current portion	(3,706.6		)	(1,937.4		)
Long-term debt	$	9,940.5		$	8,367.8

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2017

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule of Additional Stock-Based Compensation Disclosures

Stock-based compensation expense and the related tax benefits were as follows:



	2017		2016		2015
Stock-based compensation expense	$	281.3	$	255.3	$	217.8
Tax benefit	70.5		89.4		76.2

Share-based Compensation Awards, Fair Value Assumptions Used

The weighted-average fair values of the SVA units granted during the years ended December 31, 2017, 2016, and 2015 were $66.25, $48.68, and $54.81, respectively, determined using the following assumptions:



(Percents)	2017		2016		2015
Expected dividend yield	2.50	%	2.00	%	2.50	%
Risk-free interest rate	1.38		0.92		0.79
Volatility	22.91		21.68		20.37

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

Following is the composition of income tax expense:



	2017			2016			2015
Current:
Federal	$	(100.6	)	$	(57.0	)	$	660.5
Foreign	38.5			378.9			422.0
State	4.0			(125.0		)	47.5
2017 Tax Act - provisional	3,247.5			—			—
Total current tax expense	3,189.4			196.9			1,130.0
Deferred:
Federal	801.5			517.0			(689.6		)
Foreign	(256.3		)	(83.3		)	(66.0		)
State	0.4			5.8			7.2
2017 Tax Act - provisional	(1,333.5		)	—			—
Total deferred tax (benefit) expense	(787.9		)	439.5			(748.4		)
Income taxes	$	2,401.5		$	636.4		$	381.6

Schedule of Additional Income Tax Disclosures

Cash payments of income taxes were as follows:



	2017		2016		2015
Cash payments of income taxes	$	246.5	$	700.6	$	969.0

Schedule of Deferred Tax Assets and Liabilities

Significant components of our deferred tax assets and liabilities as of December 31 are as follows:



	2017			2016
Deferred tax assets:
Compensation and benefits	$	1,021.7		$	1,126.0
Tax loss carryforwards and carrybacks	501.4			327.3
Tax credit carryforwards and carrybacks	473.0			458.9
Purchases of intangible assets	443.1			620.3
Product return reserves	88.4			128.1
Other comprehensive loss on hedging transactions	68.9			123.3
Debt	53.5			95.3
Contingent consideration	41.8			142.7
Other	555.8			587.3
Total gross deferred tax assets	3,247.6			3,609.2
Valuation allowances	(709.1		)	(648.3		)
Total deferred tax assets	2,538.5			2,960.9
Deferred tax liabilities:
Inventories	(654.8		)	(955.5		)
Intangibles	(314.6		)	(604.2		)
Property and equipment	(282.1		)	(398.6		)
Prepaid employee benefits	(231.5		)	(265.3		)
Financial instruments	(41.5		)	(279.3		)
Unremitted earnings	(16.6		)	(673.6		)
Total deferred tax liabilities	(1,541.1		)	(3,176.5		)
Deferred tax assets (liabilities) - net	$	997.4		$	(215.6	)

Schedule of Effective Income Tax Rate Reconciliation

Following is a reconciliation of the income tax expense applying the U.S. federal statutory rate to income before income taxes to reported income tax expense:



	2017			2016			2015
Income tax at the U.S. federal statutory tax rate	$	769.1		$	1,180.9		$	976.5
Add (deduct):
International operations, including Puerto Rico	(428.9		)	(313.7		)	(565.2		)
General business credits	(66.8		)	(58.3		)	(69.2		)
2017 Tax Act - provisional	1,914.0			—			—
Non-deductible acquired IPR&D - CoLucid (Note 3)	300.1			—			—
Other	(86.0		)	(172.5		)	39.5
Income taxes	$	2,401.5		$	636.4		$	381.6

Summary of Income Tax Contingencies

We recognize both accrued interest and penalties related to unrecognized tax benefits in income tax expense. We recognized income tax (benefit) expense related to interest and penalties as follows:



	2017		2016			2015
Income tax (benefit) expense	$	27.4	$	(52.5	)	$	13.2

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:



	2017			2016			2015
Beginning balance at January 1	$	853.4		$	1,066.6		$	1,338.8
Additions based on tax positions related to the current year	133.8			73.4			131.3
Additions for tax positions of prior years	97.5			14.8			116.6
Reductions for tax positions of prior years	(59.3		)	(15.2		)	(45.2		)
Settlements	(2.4		)	(171.9		)	(446.2		)
Lapses of statutes of limitation	(19.3		)	(110.0		)	(4.0		)
Changes related to the impact of foreign currency translation	10.8			(4.3		)	(24.7		)
Ending balance at December 31	$	1,014.5		$	853.4		$	1,066.6

Retirement Benefits (Tables)

12 Months Ended

Dec. 31, 2017

Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Line Items] [Line Items]

Schedule of Changes in Accumulated Postemployment Benefit Obligations



	Defined Benefit Pension Plans						Retiree Health Benefit Plans
	2017			2016			2017			2016
Change in benefit obligation:
Benefit obligation at beginning of year	$	12,455.9		$	11,719.2		$	1,494.6		$	1,467.4
Service cost	331.3			277.7			46.4			39.1
Interest cost	413.4			420.8			52.9			53.2
Actuarial (gain) loss	1,580.5			806.5			40.0			50.9
Benefits paid	(486.3		)	(454.5		)	(60.1		)	(59.8		)
Plan amendments	—			—			—			(35.8		)
Curtailment	90.4			—			105.2			—
Special termination benefit	317.2			—			37.5			—
Foreign currency exchange rate changes and other adjustments	396.0			(313.8		)	12.0			(20.4		)
Benefit obligation at end of year	15,098.4			12,455.9			1,728.5			1,494.6

Schedule of Changes in Fair Value of Plan Assets



Change in plan assets:
Fair value of plan assets at beginning of year	10,179.7		9,995.6		1,961.2		1,943.7
Actual return on plan assets	1,447.6		853.4		462.0		68.9
Employer contribution	414.3		110.2		9.1		8.4
Benefits paid	(486.3	)	(454.5	)	(60.1	)	(59.8	)
Foreign currency exchange rate changes and other adjustments	289.2		(325.0	)	0.2		—
Fair value of plan assets at end of year	11,844.5		10,179.7		2,372.4		1,961.2

Schedule of Net Funded Status



Funded status	(3,253.9		)	(2,276.2		)	643.9			466.6
Unrecognized net actuarial loss	5,645.5			4,915.7			182.0			458.8
Unrecognized prior service (benefit) cost	15.2			21.7			(395.0		)	(525.1		)
Net amount recognized	$	2,406.8		$	2,661.2		$	430.9		$	400.3

Schedule of Amounts Recognized in Balance Sheet



Amounts recognized in the consolidated balance sheet consisted of:
Sundry	$	106.8		$	29.7		$	869.0		$	689.3
Other current liabilities	(64.8		)	(68.0		)	(7.1		)	(6.7		)
Accrued retirement benefits	(3,295.9		)	(2,237.9		)	(218.0		)	(216.0		)
Accumulated other comprehensive (income) loss before income taxes	5,660.7			4,937.4			(213.0		)	(66.3		)
Net amount recognized	$	2,406.8		$	2,661.2		$	430.9		$	400.3

Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year

During 2018, we expect the following components of AOCL to be recognized as components of net periodic benefit cost:



	Defined Benefit Pension Plans		Retiree Health Benefit Plans
Unrecognized net actuarial loss	$	366.1	$	9.5
Unrecognized prior service (benefit) cost	5.1		(81.3		)
Total	$	371.2	$	(71.8	)

Schedule of Assumptions Used

The following represents our weighted-average assumptions as of December 31:



	Defined Benefit Pension Plans						Retiree Health Benefit Plans
(Percents)	2017		2016		2015		2017		2016		2015
Discount rate for benefit obligation	3.4	%	3.9	%	4.3	%	3.7	%	4.3	%	4.5	%
Discount rate for net benefit costs	3.9		4.3		4.0		4.3		4.5		4.1
Rate of compensation increase for benefit obligation	3.4		3.4		3.4
Rate of compensation increase for net benefit costs	3.4		3.4		3.4
Expected return on plan assets for net benefit costs	7.4		7.4		7.4		8.0		8.0		8.0

Schedule of Expected Benefit Payments

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid as follows:



	2018		2019		2020		2021		2022		2023-2027
Defined benefit pension plans	$	603.9	$	601.4	$	611.6	$	621.4	$	639.5	$	3,455.8
Retiree health benefit plans	92.8		94.8		96.5		98.7		98.5		496.3

Schedule of Net Benefit Costs

Net pension and retiree health benefit expense included the following components:



	Defined Benefit Pension Plans									Retiree Health Benefit Plans
	2017			2016			2015			2017			2016			2015
Components of net periodic (benefit) cost:
Service cost	$	331.3		$	277.7		$	315.7		$	46.4		$	39.1		$	45.1
Interest cost	413.4			420.8			476.8			52.9			53.2			62.6
Expected return on plan assets	(776.0		)	(752.1		)	(782.3		)	(160.7		)	(150.2		)	(150.0		)
Amortization of prior service (benefit) cost	5.7			11.8			10.4			(90.0		)	(85.8		)	(91.1		)
Recognized actuarial loss	288.2			285.6			383.2			18.4			19.1			38.0
Curtailment	93.5			—			—			65.5			—			—
Special termination benefit	317.2			—			—			37.5			—			—
Net periodic (benefit) cost	$	673.3		$	243.8		$	403.8		$	(30.0	)	$	(124.6	)	$	(95.4	)

Schedule of Amounts Recognized in Other Comprehensive Income (Loss)

The following represents the amounts recognized in other comprehensive income (loss) for the years ended December 31, 2017, 2016, and 2015:



	Defined Benefit Pension Plans								Retiree Health Benefit Plans
	2017			2016			2015		2017			2016			2015
Actuarial gain (loss) arising during period	$	(915.1	)	$	(725.2	)	$	120.4	$	261.3		$	(132.2	)	$	48.6
Plan amendments during period	—			—			0.4		—			35.8			—
Curtailment	3.2			—			—		(39.7		)	—			—
Amortization of prior service (benefit) cost included in net income	5.7			11.8			10.4		(90.0		)	(85.8		)	(91.1		)
Amortization of net actuarial loss included in net income	288.2			285.6			383.2		18.4			19.1			38.0
Foreign currency exchange rate changes and other	(105.3		)	75.6			58.8		(3.3		)	2.5			4.2
Total other comprehensive income (loss) during period	$	(723.3	)	$	(352.2	)	$	573.2	$	146.7		$	(160.6	)	$	(0.3	)

Schedule of Allocation of Plan Assets

The fair values of our defined benefit pension plan and retiree health plan assets as of December 31, 2017 by asset category are as follows:



				Fair Value Measurements Using
Asset Class	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Investments Valued at Net Asset Value⁽¹⁾
Defined Benefit Pension Plans
Public equity securities:
U.S.	$	466.2		$	199.6	$	—		$	—	$	266.6
International	2,934.2			955.1		—			—		1,979.1
Fixed income:
Developed markets	3,182.9			28.7		2,468.2			—		686.0
Developed markets - repurchase agreements	(1,372.9		)	—		(1,372.9		)	—		—
Emerging markets	584.7			4.2		252.0			3.1		325.4
Private alternative investments:
Hedge funds	2,984.6			—		—			—		2,984.6
Equity-like funds	1,639.6			—		—			16.8		1,622.8
Real estate	563.9			338.6		—			—		225.3
Other	861.3			119.2		602.8			2.2		137.1
Total	$	11,844.5		$	1,645.4	$	1,950.1		$	22.1	$	8,226.9

Retiree Health Benefit Plans
Public equity securities:
U.S.	$	43.0		$	19.4	$	—		$	—	$	23.6
International	182.5			61.3		—			—		121.2
Fixed income:
Developed markets	71.2			—		63.5			—		7.7
Emerging markets	53.1			—		24.4			0.3		28.4
Private alternative investments:
Hedge funds	256.0			—		—			—		256.0
Equity-like funds	137.0			—		—			1.6		135.4
Cash value of trust owned insurance contract	1,524.6			—		1,524.6			—		—
Real estate	33.0			33.0		—			—		—
Other	72.0			15.0		50.5			0.2		6.3
Total	$	2,372.4		$	128.7	$	1,663.0		$	2.1	$	578.6

⁽¹⁾Certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy.

The fair values of our defined benefit pension plan and retiree health plan assets as of December 31, 2016 by asset category are as follows:



				Fair Value Measurements Using
Asset Class	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Investments Valued at Net Asset Value⁽¹⁾
Defined Benefit Pension Plans
Public equity securities:
U.S.	$	402.4		$	165.5	$	—		$	—	$	236.9
International	2,285.6			770.5		—			—		1,515.1
Fixed income:
Developed markets	2,631.3			27.2		1,983.0			—		621.1
Developed markets - repurchase agreements	(1,024.4		)	—		(1,024.4		)	—		—
Emerging markets	450.0			—		180.1			0.3		269.6
Private alternative investments:
Hedge funds	2,904.6			—		—			—		2,904.6
Equity-like funds	1,355.0			—		0.2			16.8		1,338.0
Real estate	504.1			344.5		—			—		159.6
Other	671.1			365.0		108.1			—		198.0
Total	$	10,179.7		$	1,672.7	$	1,247.0		$	17.1	$	7,242.9

Retiree Health Benefit Plans
Public equity securities:
U.S.	$	38.7		$	16.7	$	—		$	—	$	22.0
International	146.3			52.0		—			—		94.3
Fixed income:
Developed markets	68.0			—		58.4			—		9.6
Emerging markets	42.6			—		18.2			—		24.4
Private alternative investments:
Hedge funds	261.0			—		—			—		261.0
Equity-like funds	116.0			—		—			1.7		114.3
Cash value of trust owned insurance contract	1,208.3			—		1,208.3			—		—
Real estate	34.8			34.8		—			—		—
Other	45.5			28.1		3.7			—		13.7
Total	$	1,961.2		$	131.6	$	1,288.6		$	1.7	$	539.3

⁽¹⁾Certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy.

Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets

Amounts relating to defined benefit pension plans with projected benefit obligations in excess of plan assets were as follows at December 31:



	2017		2016
Projected benefit obligation	$	13,025.0	$	10,597.0
Fair value of plan assets	9,664.3		8,291.2

Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets

Amounts relating to defined benefit pension plans and retiree health benefit plans with accumulated benefit obligations in excess of plan assets were as follows at December 31:



	Defined Benefit Pension Plans				Retiree Health Benefit Plans
	2017		2016		2017		2016
Accumulated benefit obligation	$	11,956.7	$	9,805.4	$	225.1	$	222.7
Fair value of plan assets	9,639.4		8,285.2		—		—

Other Comprehensive Income (Loss) (Tables)

12 Months Ended

Dec. 31, 2017

Equity [Abstract]

Schedule of Amounts Recognized in Other Comprehensive Income (Loss)



Details about Accumulated Other Comprehensive Loss Components	Year Ended December 31,									Affected Line Item in the Consolidated Statements of Operations
	2017			2016			2015
Amortization of retirement benefit items:
Prior service benefits, net	$	(84.3	)	$	(74.0	)	$	(80.7	)	⁽¹⁾
Actuarial losses	306.6			304.7			421.2			⁽¹⁾
Total before tax	222.3			230.7			340.5
Tax benefit	(68.9		)	(71.5		)	(105.6		)	Income taxes
Net of tax	153.4			159.2			234.9

Unrealized gains/losses on available-for-sale securities:
Realized gains, net	(170.2		)	(16.1		)	(209.3		)	Other—net, (income) expense
Impairment losses	—			27.3			12.0			Other—net, (income) expense
Total before tax	(170.2		)	11.2			(197.3		)
Tax (benefit) expense	59.6			(4.0		)	69.1			Income taxes
Net of tax	(110.6		)	7.2			(128.2		)

Other, net of tax ⁽²⁾	17.7			84.3			9.5			Other—net, (income) expense
Total reclassifications for the period, net of tax	$	60.5		$	250.7		$	116.2

⁽¹⁾These accumulated other comprehensive loss components are included in the computation of net periodic pension cost (see Note 14).

⁽²⁾Amount for year ended December 31, 2016 included primarily $74.5 million of foreign currency translation losses.

Schedule of Accumulated Other Comprehensive Income (Loss)

The following table summarizes the activity related to each component of other comprehensive income (loss):



(Amounts presented net of taxes)	Foreign Currency Translation Gains (Losses)			Unrealized Net Gains (Losses) on Securities			Defined Benefit Pension and Retiree Health Benefit Plans			Effective Portion of Cash Flow Hedges			Accumulated Other Comprehensive Loss
Beginning balance at January 1, 2015	$	(498.4	)	$	99.7		$	(3,402.0	)	$	(191.1	)	$	(3,991.8	)

Other comprehensive income (loss) before reclassifications	(861.8		)	38.6			155.0			(36.9		)	(705.1		)
Net amount reclassified from accumulated other comprehensive loss	—			(128.2		)	234.9			9.5			116.2
Net other comprehensive income (loss)	(861.8		)	(89.6		)	389.9			(27.4		)	(588.9		)

Balance at December 31, 2015	(1,360.2		)	10.1			(3,012.1		)	(218.5		)	(4,580.7		)

Other comprehensive income (loss) before reclassifications	(581.6		)	206.7			(518.7		)	(2.2		)	(895.8		)
Net amount reclassified from accumulated other comprehensive loss	74.5			7.2			159.2			9.8			250.7
Net other comprehensive income (loss)	(507.1		)	213.9			(359.5		)	7.6			(645.1		)

Balance at December 31, 2016⁽¹⁾	(1,867.3		)	224.0			(3,371.6		)	(210.9		)	(5,225.8		)

Other comprehensive income (loss) before reclassifications	664.6			(15.7		)	(543.4		)	8.5			114.0
Net amount reclassified from accumulated other comprehensive loss	8.1			(110.6		)	153.4			9.6			60.5
Net other comprehensive income (loss)	672.7			(126.3		)	(390.0		)	18.1			174.5

Reclassifications of stranded tax effects - provisional (Note 2)	(38.8		)	15.8			(579.1		)	(41.5		)	(643.6		)

Ending balance at December 31, 2017⁽²⁾	$	(1,233.4	)	$	113.5		$	(4,340.7	)	$	(234.3	)	$	(5,694.9	)

The tax effects on the net activity related to each component of other comprehensive income (loss) for the years ended December 31, were as follows:



Tax benefit (expense)	2017			2016			2015
Foreign currency translation gains/losses	$	170.8		$	(70.6	)	$	(2.0	)
Unrealized net gains/losses on securities	55.0			(89.2		)	48.5
Defined benefit pension and retiree health benefit plans	186.6			153.3			(183.0		)
Effective portion of cash flow hedges	(9.7		)	(4.1		)	14.6
Benefit/(provision) for income taxes allocated to other comprehensive income (loss) items	$	402.7		$	(10.6	)	$	(121.9	)

Other - Net, Expense (Income) (Tables)

12 Months Ended

Dec. 31, 2017

Nonoperating Income (Expense) [Abstract]

Schedule of Other Nonoperating Income (Expense)

Other–net, (income) expense consisted of the following:



	2017			2016			2015
Interest expense	$	225.0		$	185.2		$	161.2
Interest income	(167.3		)	(108.7		)	(87.0		)
Venezuela charge	—			203.9			—
Debt extinguishment loss (Note 10)	—			—			166.7
Other income	(110.1		)	(195.6		)	(341.5		)
Other–net, (income) expense	$	(52.4	)	$	84.8		$	(100.6	)

Segment Information (Tables)

12 Months Ended

Dec. 31, 2017

Segment Reporting [Abstract]

Schedule of Additional Segment Information Disclosures

Depreciation and software amortization expense included in our segment profits was as follows:



	2017		2016		2015
Human pharmaceutical products	$	789.8	$	723.4	$	720.7
Animal health products	102.7		89.9		80.8
Total depreciation expense and software amortization included in segment profits	$	892.5	$	813.3	$	801.5

Reconciliation of Operating Profit (Loss) from Segments to Consolidated

The following table summarizes our revenue activity:



	2017		2016		2015
Segment revenue—to unaffiliated customers:
Human pharmaceutical products:

Endocrinology:
Humalog^®	$	2,865.2	$	2,768.8	$	2,841.9
Trulicity^®	2,029.8		925.5		248.7
Forteo^®	1,749.0		1,500.0		1,348.3
Humulin^®	1,335.4		1,365.9		1,307.4
Trajenta	537.9		436.6		356.8
Jardiance	447.5		201.9		60.2
Basaglar	432.1		86.1		11.1
Other Endocrinology	688.3		798.0		862.4
Total Endocrinology	10,085.2		8,082.8		7,036.8

Oncology:
Alimta	2,062.5		2,283.3		2,493.1
Cyramza^®	758.3		614.1		383.8
Erbitux	645.9		687.0		485.0
Other Oncology	345.2		137.4		147.9
Total Oncology	3,811.9		3,721.8		3,509.8

Cardiovascular:
Cialis	2,323.1		2,471.6		2,310.7
Effient	388.9		535.2		523.0
Other Cardiovascular	159.1		218.6		234.3
Total Cardiovascular	2,871.1		3,225.4		3,068.0

Neuroscience:
Cymbalta⁽¹⁾	757.2		930.5		1,027.6
Strattera	618.2		854.7		784.0
Zyprexa	581.2		725.3		940.3
Other Neuroscience	214.4		209.8		183.5
Total Neuroscience	2,171.0		2,720.3		2,935.4

Immunology:
Taltz^®	559.2		113.1		—
Other Immunology	45.9		—		—
Total Immunology	605.1		113.1		—

Other human pharmaceutical products	241.3		200.5		227.7
Total human pharmaceutical products	19,785.7		18,063.9		16,777.7
Animal health products	3,085.6		3,158.2		3,181.0
Revenue	$	22,871.3	$	21,222.1	$	19,958.7



	2017			2016			2015
Segment profits:
Human pharmaceutical products	$	5,139.7		$	4,010.0		$	4,026.7
Animal health products	561.3			663.7			597.9
Total segment profits	$	5,701.0		$	4,673.7		$	4,624.6

Reconciliation of total segment profits to consolidated income before taxes:
Segment profits	$	5,701.0		$	4,673.7		$	4,624.6
Other profits (losses):
Amortization of intangible assets (Note 8)	(674.8		)	(683.3		)	(626.2		)
Asset impairment, restructuring, and other special charges (Note 5)	(1,673.6		)	(382.5		)	(367.7		)
Venezuela charge (Note 17)	—			(203.9		)	—
Acquired in-process research and development (Notes 3 and 4)	(1,112.6		)	(30.0		)	(535.0		)
Inventory fair value adjustment related to acquisitions⁽²⁾ (Note 3)	(42.7		)	—			(153.0		)
Debt repurchase charges, net⁽³⁾ (Note 10)	—			—			(152.7		)
Consolidated income before taxes	$	2,197.4		$	3,374.0		$	2,790.0

Numbers may not add due to rounding.

⁽¹⁾Cymbalta revenues benefited from reductions to the reserve for expected product returns of approximately $175 million during the year ended December 31, 2016.

⁽²⁾Inventory fair value adjustments in 2017 and 2015 relate to our acquisitions of BIVIVP and Novartis AH, respectively.

Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas



	2017		2016		2015
Geographic Information
Revenue—to unaffiliated customers⁽¹⁾:
United States	$	12,785.1	$	11,506.2	$	10,097.4
Europe	3,943.2		3,768.1		3,943.6
Japan	2,419.7		2,330.9		2,033.1
Other foreign countries	3,723.3		3,616.9		3,884.6
Revenue	$	22,871.3	$	21,222.1	$	19,958.7

Long-lived assets⁽²⁾:
United States	$	5,013.4	$	4,984.6	$	4,576.8
Europe	2,550.1		2,140.7		2,306.4
Japan	155.1		92.4		89.2
Other foreign countries	1,761.7		1,776.8		1,724.2
Long-lived assets	$	9,480.3	$	8,994.5	$	8,696.6

Numbers may not add due to rounding.

⁽¹⁾Revenue is attributed to the countries based on the location of the customer.

⁽²⁾Long-lived assets consist of property and equipment, net, and certain sundry assets.

Selected Quarterly Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2017

Quarterly Financial Information Disclosure [Abstract]

Schedule of Quarterly Financial Information



2017	Fourth			Third		Second		First
Revenue	$	6,160.7		$	5,658.0	$	5,824.3	$	5,228.3
Cost of sales	1,624.8			1,566.1		1,551.6		1,327.7
Operating expenses⁽¹⁾	3,253.7			2,874.9		2,958.3		2,783.0
Acquired in-process research and development⁽²⁾	50.0			205.0		—		857.6
Asset impairment, restructuring, and other special charges⁽³⁾	1,003.2			406.5		50.0		213.9
Income before income taxes	284.1			591.6		1,260.5		61.2
Income taxes⁽⁴⁾	1,941.0			36.0		252.5		172.0
Net income (loss)	(1,656.9		)	555.6		1,008.0		(110.8		)
Earnings (loss) per share—basic	(1.58		)	0.53		0.96		(0.10		)
Earnings (loss) per share—diluted	(1.58		)	0.53		0.95		(0.10		)
Dividends paid per share	0.52			0.52		0.52		0.52
Common stock closing prices:
High	87.89			85.54		86.25		85.88
Low	81.94			77.07		76.98		74.58

2016	Fourth			Third		Second		First
Revenue	$	5,760.5		$	5,191.7	$	5,404.8	$	4,865.1
Cost of sales	1,466.0			1,400.9		1,465.0		1,323.0
Operating expenses⁽¹⁾	3,240.7			2,801.8		2,958.5		2,694.9
Acquired in-process research and development	30.0			—		—		—
Asset impairment, restructuring, and other special charges	147.6			45.5		58.0		131.4
Income before income taxes	892.0			970.7		944.5		566.8
Income taxes	120.2			192.7		196.8		126.7
Net income	771.8			778.0		747.7		440.1
Earnings per share—basic	0.73			0.74		0.71		0.42
Earnings per share—diluted	0.73			0.73		0.71		0.41
Dividends paid per share	0.51			0.51		0.51		0.51
Common stock closing prices:
High	83.06			83.40		78.75		84.11
Low	65.97			76.85		72.57		69.06

⁽¹⁾Includes research and development and marketing, selling, and administrative expenses.

Implementation of New Financial Accounting Pronouncements (Details) - USD ($) $ in Millions	Jan. 01, 2018	Dec. 31, 2017	Dec. 31, 2016
New Accounting Pronouncement, Early Adoption [Line Items]
Accumulated other comprehensive income (loss)		$ (5,718.6)	$ (5,274.0)
Retained earnings		13,894.1	$ 16,046.3
New Accounting Pronouncement, Early Adoption, Effect
New Accounting Pronouncement, Early Adoption [Line Items]
Accumulated other comprehensive income (loss)		(643.6)
Retained earnings		643.6
Accounting Standards Update 2016-16
New Accounting Pronouncement, Early Adoption [Line Items]
Retained earnings		2,500.0
Deferred tax assets		$ 2,500.0
Scenario, Forecast \| Accounting Standards Update 2016-01
New Accounting Pronouncement, Early Adoption [Line Items]
Accumulated other comprehensive income (loss)	$ (105.0)
Retained earnings	$ 105.0

Acquisitions (narrative) (Details) - USD ($) $ in Millions		1 Months Ended			3 Months Ended								12 Months Ended
Acquisitions (narrative) (Details) - USD ($) $ in Millions	Jan. 03, 2017	Mar. 31, 2017	Jan. 31, 2017	Jan. 31, 2015	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Jan. 01, 2015	Dec. 31, 2014
Business Acquisition [Line Items]
Acquired in-process research and development					$ 50.0	$ 205.0	$ 0.0	$ 857.6	$ 30.0	$ 0.0	$ 0.0	$ 0.0	$ 1,112.6	$ 30.0	$ 535.0
Restricted cash																	$ 5,410.0
Boehringer
Business Acquisition [Line Items]
Consideration transferred	$ 882.1
Intangibles acquired, weighted average useful life (in years)			10 years
Revenue													216.7
Novartis Animal Health
Business Acquisition [Line Items]
Consideration transferred				$ 5,280.0
Intangibles acquired, weighted average useful life (in years)				19 years
Goodwill recognized																$ 1,000.0
CoLucid Pharmaceuticals, Inc. (CoLucid)
Business Acquisition [Line Items]
Purchased in-process research and development		$ 831.8
Acquired in-process research and development													857.6
Accrued liabilities acquired		$ 25.8
KeyBioscience AG (KeyBioscience)
Business Acquisition [Line Items]
Acquired in-process research and development													55.0
Nektar Therapeutics (Nektar)
Business Acquisition [Line Items]
Acquired in-process research and development													150.0
CureVac AG (CureVac)
Business Acquisition [Line Items]
Acquired in-process research and development													$ 50.0
AstraZeneca
Business Acquisition [Line Items]
Acquired in-process research and development														$ 30.0
Innovent Biologics, Inc. (Innovent)
Business Acquisition [Line Items]
Acquired in-process research and development															56.0
Hanmi Pharmaceutical Co., Ltd. (Hanmi)
Business Acquisition [Line Items]
Acquired in-process research and development															50.0
BioNTech AG (BioNTech)
Business Acquisition [Line Items]
Acquired in-process research and development															30.0
Locemia Solutions
Business Acquisition [Line Items]
Acquired in-process research and development															149.0
Undisclosed
Business Acquisition [Line Items]
Acquired in-process research and development															25.0
Halozyme Therapeutics, Inc. (Halozyme)
Business Acquisition [Line Items]
Acquired in-process research and development															25.0
Tanezumab
Business Acquisition [Line Items]
Acquired in-process research and development															$ 200.0
United States \| U.S. Sentinel Product Line
Business Acquisition [Line Items]
Proceeds from divestiture of businesses				$ 410.0

Acquisitions (Purchase Price Allocation) (Details) - USD ($) $ in Millions	Dec. 31, 2017	Jan. 03, 2017	Dec. 31, 2016	Jan. 01, 2015
Business Acquisition [Line Items]
Goodwill	$ 4,370.1		$ 3,972.7
Boehringer
Business Acquisition [Line Items]
Inventories		$ 108.6
Marketed products		297.0
Property and equipment		148.2
Other assets and liabilities - net		8.2
Total identifiable net assets		562.0
Goodwill		320.1
Total consideration transferred - net of cash acquired		$ 882.1
Novartis Animal Health
Business Acquisition [Line Items]
Inventories				$ 380.2
Acquired in-process research and development				298.0
Marketed products				1,953.0
Property and equipment				199.9
Assets held for sale (primarily the U.S. Sentinel rights)				422.7
Accrued retirement benefits				(108.7)
Deferred income taxes				(60.1)
Other assets and liabilities - net				(73.0)
Total identifiable net assets				3,012.0
Goodwill				2,271.1
Total consideration transferred - net of cash acquired				$ 5,283.1

Collaborations (Details) - USD ($) $ in Millions	1 Months Ended				3 Months Ended									12 Months Ended
Collaborations (Details) - USD ($) $ in Millions	Sep. 30, 2014	Oct. 31, 2013	Dec. 31, 2009	Jun. 30, 2001	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Oct. 01, 2015
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Collaboration and other revenue														$ 1,199.9	$ 833.7	$ 808.1
Revenue					$ 6,160.7	$ 5,658.0	$ 5,824.3	$ 5,228.3	$ 5,760.5	$ 5,191.7	$ 5,404.8	$ 4,865.1		22,871.3	21,222.1	19,958.7
Research and development														5,281.8	5,243.9	4,796.4
Acquired in-process research and development					$ 50.0	$ 205.0	$ 0.0	$ 857.6	$ 30.0	$ 0.0	$ 0.0	$ 0.0		1,112.6	30.0	535.0
Trajenta
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Collaboration and other revenue														537.9	436.6	356.8
Tanezumab
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Acquired in-process research and development																200.0
Jardiance (BI)
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Collaboration and other revenue														447.5	201.9	60.2
Europe
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue														3,943.2	3,768.1	3,943.6
JAPAN
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue														2,419.7	2,330.9	2,033.1
Milestone Payments, Sales-based \| Olumiant
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Collaborative arrangement, rights and obligations, terms			$ 150.0
Milestone Payments, Sales-based \| Tanezumab
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Collaborative arrangement, rights and obligations, terms		$ 1,230.0
Milestone Payments, Development and Regulatory, Capitalized, Cumulative \| Trajenta
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Collaborative arrangement, rights and obligations, terms														446.4
Milestone Payments, Development and Regulatory, Capitalized, Cumulative \| Jardiance
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Collaborative arrangement, rights and obligations, terms														299.5
Milestone Payments, Development and Regulatory, Capitalized, Cumulative \| Basaglar
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Collaborative arrangement, rights and obligations, terms														(250.0)
Milestone Payments, Development and Regulatory, Capitalized \| Basaglar
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Collaborative arrangement, rights and obligations, terms														0.0	(187.5)	0.0
Profit And Development And Marketing Share \| Effient
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Collaborative arrangement, rights and obligations percent (in percentage)				50.00%
Sales Reported \| Erbitux
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Collaborative arrangement, rights and obligations percent (in percentage)													38.00%
Research And Development Exp \| Olumiant
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Collaborative arrangement, rights and obligations percent (in percentage)			30.00%
Milestone Payments, Development and Regulatory, Expensed \| Olumiant
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Research and development														30.0	55.0
Milestone Payments, Development and Regulatory, Expensed \| Lanabecestat
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Research and development														50.0	100.0
Milestone Payments, Development and Regulatory, Capitalized (Deferred) \| Europe \| Olumiant
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Collaborative arrangement, rights and obligations, terms														65.0
Milestone Payments, Development and Regulatory, Capitalized (Deferred) \| JAPAN \| Olumiant
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Collaborative arrangement, rights and obligations, terms														15.0
Milestone Payments, Development and Regulatory \| Olumiant
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Collaborative arrangement, rights and obligations, terms			$ 250.0
Milestone Payments, Development and Regulatory \| Tanezumab
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Collaborative arrangement, rights and obligations, terms		$ 350.0
Milestone Payments, Development and Regulatory \| Lanabecestat
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Collaborative arrangement, rights and obligations, terms	$ 300.0
Milestone Payments, Development and Regulatory, First Indication \| Olumiant
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Collaborative arrangement, rights and obligations, terms			$ 100.0
Royalty Payments Received \| Olumiant
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Collaborative arrangement, rights and obligations percent (in percentage)			20.00%
Erbitux Acquisition
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Marketed products																	$ 602.1
Deferred tax asset																	232.2
Deferred tax liability																	(228.2)
Other assets and liabilities - net																	57.2
Total identifiable net assets																	663.3
Total consideration - contingent consideration liability																	$ (663.3)
Pro forma revenue																20,200.0
Erbitux Acquisition \| Erbitux
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Pro forma revenue																735.0
Human pharmaceutical products
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue														19,785.7	18,063.9	16,777.7
Human pharmaceutical products \| Erbitux API
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Net product revenue														0.0	0.0	23.3
Human pharmaceutical products \| Erbitux
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Collaboration and other revenue														97.7	100.0	309.4
Net product revenue														548.2	587.0	152.3
Revenue														645.9	687.0	485.0
Human pharmaceutical products \| Trajenta
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Collaboration and other revenue														537.9	436.6	356.8
Human pharmaceutical products \| Effient
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue														388.9	535.2	523.0
Human pharmaceutical products \| Jardiance
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Collaboration and other revenue														447.5	201.9	60.2
Human pharmaceutical products \| Basaglar
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue														$ 432.1	$ 86.1	$ 11.1

Asset Impairments, Restructuring, and Other Special Charges (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Unusual or Infrequent Item [Line Items]
Severance:									$ 697.4	$ 126.7	$ 141.0
Asset impairment (gains from facility sales) and other special charges:									462.5	255.8	226.7
Asset impairment, restructuring, and other special charges	$ 1,003.2	$ 406.5	$ 50.0	$ 213.9	$ 147.6	$ 45.5	$ 58.0	$ 131.4	1,673.6	382.5	367.7
Human pharmaceutical products
Unusual or Infrequent Item [Line Items]
Severance:									601.0	85.9	81.5
Asset impairment (gains from facility sales) and other special charges:									81.7	(13.0)	24.6
Animal health products
Unusual or Infrequent Item [Line Items]
Severance:									96.4	40.8	59.5
Asset impairment (gains from facility sales) and other special charges:									380.8	268.8	202.1
United States
Unusual or Infrequent Item [Line Items]
Total pension and post-retirement medical charges associated with U.S. early retirement program									513.7	0.0	0.0
United States \| Human pharmaceutical products
Unusual or Infrequent Item [Line Items]
Total pension and post-retirement medical charges associated with U.S. early retirement program									446.7	0.0	0.0
United States \| Animal health products
Unusual or Infrequent Item [Line Items]
Total pension and post-retirement medical charges associated with U.S. early retirement program									$ 67.0	$ 0.0	$ 0.0

Asset Impairments, Restructuring, and Other Special Charges (Narrative) (Details) - USD ($) $ in Millions	12 Months Ended			13 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Jan. 31, 2018
Restructuring Cost and Reserve [Line Items]
Severance costs	$ 697.4	$ 126.7	$ 141.0
Asset impairment charges	151.5
Impairment of intangibles	50.0
Asset impairment (gains from facility sales) and other special charges:	462.5	$ 255.8	$ 226.7
Outside US
Restructuring Cost and Reserve [Line Items]
Severance costs	284.9
PUERTO RICO
Restructuring Cost and Reserve [Line Items]
Asset impairment (gains from facility sales) and other special charges:	43.4
United States
Restructuring Cost and Reserve [Line Items]
Severance costs	$ 412.5
United States \| Subsequent Event
Restructuring Cost and Reserve [Line Items]
Payments for restructuring				$ 300.0

Inventories (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Finished products	$ 1,211.4	$ 987.3
Work in process	2,697.7	2,117.2
Raw materials and supplies	488.8	435.3
Total (approximates replacement cost)	4,397.9	3,539.8
Increase to LIFO cost	60.4	22.1
Inventories	4,458.3	3,561.9
LIFO Inventory Amount	$ 1,560.0	$ 1,430.0

Financial Instruments (Effect of Risk Management) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Cash flow hedges: \| Cash flow hedges:
Cash Flow Hedge [Abstract]
Effective portion of risk-management instruments that was recognized in other comprehensive income (loss)	$ 13.0	$ (3.4)	$ (56.7)
Net investment hedges:
Cash Flow Hedge [Abstract]
Effective portion of risk-management instruments that was recognized in other comprehensive income (loss)	(361.5)	137.5	0.0
Net investment hedges: \| Foreign Exchange Contract
Cash Flow Hedge [Abstract]
Effective portion of risk-management instruments that was recognized in other comprehensive income (loss)	0.0	31.9	0.0
Net investment hedges: \| Cross-currency interest rate swaps
Cash Flow Hedge [Abstract]
Effective portion of risk-management instruments that was recognized in other comprehensive income (loss)	(126.6)	32.5	0.0
Designated as Hedging Instrument \| Hedged Fixed Rate Debt
Fair Value Hedge [Abstract]
Effect from hedged fixed-rate debt	(14.1)	(30.8)	(11.9)
Designated as Hedging Instrument \| Interest Rate Contract
Fair Value Hedge [Abstract]
Effect from interest rate contracts	14.1	30.8	11.9
Cash Flow Hedge [Abstract]
Effective portion of losses on interest rate contracts reclassified from accumulated other comprehensive loss	14.8	15.0	13.7
Not Designated as Hedging Instrument \| Foreign Exchange Contract
Cash Flow Hedge [Abstract]
Net (gains) losses on foreign currency exchange contracts not designated as hedging instruments	$ 97.9	$ 78.8	$ (28.2)

Financial Instruments (Fair Value Measurement) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Noncurrent investments:
Change on the fair value of contingent consideration	$ 203.9	$ 231.0
Portion at Other than Fair Value Measurement [Member]
Statement [Line Items]
Cash equivalents	4,763.9	2,986.8
Carrying Amount
Statement [Line Items]
Cash equivalents	4,763.9	2,986.8
Short-term investments:
Short-term investments	1,497.9	1,456.5
Noncurrent investments:
Available-for-sale Securities, Noncurrent, Total	5,678.8	5,207.5
Other current liabilities	(208.0)	(215.9)
Other noncurrent liabilities	(45.2)	(242.6)
Fair Value
Statement [Line Items]
Cash equivalents	4,763.9	2,986.8
Noncurrent investments:
Other current liabilities	(208.0)	(215.9)
Other noncurrent liabilities	(45.2)	(242.6)
Quoted Prices in Active Markets for Identical Assets (Level 1) \| Fair Value
Statement [Line Items]
Cash equivalents	4,712.4	2,699.4
Noncurrent investments:
Other current liabilities	0.0	0.0
Other noncurrent liabilities	0.0	0.0
Significant Other Observable Inputs (Level 2) \| Fair Value
Statement [Line Items]
Cash equivalents	51.5	287.4
Noncurrent investments:
Other current liabilities	0.0	0.0
Other noncurrent liabilities	0.0	0.0
Significant Unobservable Inputs (Level 3) \| Fair Value
Statement [Line Items]
Cash equivalents	0.0	0.0
Noncurrent investments:
Other current liabilities	(208.0)	(215.9)
Other noncurrent liabilities	(45.2)	(242.6)
U.S. government and agency securities \| Portion at Other than Fair Value Measurement [Member]
Short-term investments:
Short-term investments, debt securities	218.2	232.6
Noncurrent investments:
Noncurrent investments, debt securities	365.0	323.8
U.S. government and agency securities \| Carrying Amount
Short-term investments:
Short-term investments, debt securities	217.8	232.5
Noncurrent investments:
Noncurrent investments, debt securities	360.0	318.9
U.S. government and agency securities \| Fair Value
Short-term investments:
Short-term investments, debt securities	217.8	232.5
Noncurrent investments:
Noncurrent investments, debt securities	360.0	318.9
U.S. government and agency securities \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Fair Value
Short-term investments:
Short-term investments, debt securities	217.8	232.5
Noncurrent investments:
Noncurrent investments, debt securities	360.0	318.9
U.S. government and agency securities \| Significant Other Observable Inputs (Level 2) \| Fair Value
Short-term investments:
Short-term investments, debt securities	0.0	0.0
Noncurrent investments:
Noncurrent investments, debt securities	0.0	0.0
U.S. government and agency securities \| Significant Unobservable Inputs (Level 3) \| Fair Value
Short-term investments:
Short-term investments, debt securities	0.0	0.0
Noncurrent investments:
Noncurrent investments, debt securities	0.0	0.0
Corporate debt securities \| Portion at Other than Fair Value Measurement [Member]
Short-term investments:
Short-term investments, debt securities	1,183.2	1,219.1
Noncurrent investments:
Noncurrent investments, debt securities	3,473.5	3,074.3
Corporate debt securities \| Carrying Amount
Short-term investments:
Short-term investments, debt securities	1,182.3	1,219.2
Noncurrent investments:
Noncurrent investments, debt securities	3,464.3	3,062.2
Corporate debt securities \| Fair Value
Short-term investments:
Short-term investments, debt securities	1,182.3	1,219.2
Noncurrent investments:
Noncurrent investments, debt securities	3,464.3	3,062.2
Corporate debt securities \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Fair Value
Short-term investments:
Short-term investments, debt securities	0.0	0.0
Noncurrent investments:
Noncurrent investments, debt securities	0.0	0.0
Corporate debt securities \| Significant Other Observable Inputs (Level 2) \| Fair Value
Short-term investments:
Short-term investments, debt securities	1,182.3	1,219.2
Noncurrent investments:
Noncurrent investments, debt securities	3,464.3	3,062.2
Corporate debt securities \| Significant Unobservable Inputs (Level 3) \| Fair Value
Short-term investments:
Short-term investments, debt securities	0.0	0.0
Noncurrent investments:
Noncurrent investments, debt securities	0.0	0.0
Other securities \| Portion at Other than Fair Value Measurement [Member]
Short-term investments:
Short-term investments, debt securities	3.6	0.5
Noncurrent investments:
Noncurrent investments, debt securities	66.4	77.6
Other securities \| Carrying Amount
Short-term investments:
Short-term investments, debt securities	3.6	0.5
Noncurrent investments:
Noncurrent investments, debt securities	132.1	153.7
Other securities \| Fair Value
Short-term investments:
Short-term investments, debt securities	3.6	0.5
Noncurrent investments:
Noncurrent investments, debt securities	132.1	153.7
Other securities \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Fair Value
Short-term investments:
Short-term investments, debt securities	0.0	0.0
Noncurrent investments:
Noncurrent investments, debt securities	0.0	0.0
Other securities \| Significant Other Observable Inputs (Level 2) \| Fair Value
Short-term investments:
Short-term investments, debt securities	3.6	0.5
Noncurrent investments:
Noncurrent investments, debt securities	0.0	0.0
Other securities \| Significant Unobservable Inputs (Level 3) \| Fair Value
Short-term investments:
Short-term investments, debt securities	0.0	0.0
Noncurrent investments:
Noncurrent investments, debt securities	132.1	153.7
Mortgage-backed securities \| Portion at Other than Fair Value Measurement [Member]
Noncurrent investments:
Noncurrent investments, debt securities	204.2	185.4
Mortgage-backed securities \| Carrying Amount
Noncurrent investments:
Noncurrent investments, debt securities	202.4	183.1
Mortgage-backed securities \| Fair Value
Noncurrent investments:
Noncurrent investments, debt securities	202.4	183.1
Mortgage-backed securities \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Fair Value
Noncurrent investments:
Noncurrent investments, debt securities	0.0	0.0
Mortgage-backed securities \| Significant Other Observable Inputs (Level 2) \| Fair Value
Noncurrent investments:
Noncurrent investments, debt securities	202.4	183.1
Mortgage-backed securities \| Significant Unobservable Inputs (Level 3) \| Fair Value
Noncurrent investments:
Noncurrent investments, debt securities	0.0	0.0
Asset-backed securities \| Portion at Other than Fair Value Measurement [Member]
Short-term investments:
Short-term investments, debt securities	94.3	4.3
Noncurrent investments:
Noncurrent investments, debt securities	656.0	503.5
Asset-backed securities \| Carrying Amount
Short-term investments:
Short-term investments, debt securities	94.2	4.3
Noncurrent investments:
Noncurrent investments, debt securities	653.9	502.7
Asset-backed securities \| Fair Value
Short-term investments:
Short-term investments, debt securities	94.2	4.3
Noncurrent investments:
Noncurrent investments, debt securities	653.9	502.7
Asset-backed securities \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Fair Value
Short-term investments:
Short-term investments, debt securities	0.0	0.0
Noncurrent investments:
Noncurrent investments, debt securities	0.0	0.0
Asset-backed securities \| Significant Other Observable Inputs (Level 2) \| Fair Value
Short-term investments:
Short-term investments, debt securities	94.2	4.3
Noncurrent investments:
Noncurrent investments, debt securities	653.9	502.7
Asset-backed securities \| Significant Unobservable Inputs (Level 3) \| Fair Value
Short-term investments:
Short-term investments, debt securities	0.0	0.0
Noncurrent investments:
Noncurrent investments, debt securities	0.0	0.0
Marketable equity securities \| Portion at Other than Fair Value Measurement [Member]
Noncurrent investments:
Marketable equity securities	131.0	91.9
Marketable equity securities \| Carrying Amount
Noncurrent investments:
Marketable equity securities	281.3	418.2
Marketable equity securities \| Fair Value
Noncurrent investments:
Marketable equity securities	281.3	418.2
Marketable equity securities \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Fair Value
Noncurrent investments:
Marketable equity securities	281.3	418.2
Marketable equity securities \| Significant Other Observable Inputs (Level 2) \| Fair Value
Noncurrent investments:
Marketable equity securities	0.0	0.0
Marketable equity securities \| Significant Unobservable Inputs (Level 3) \| Fair Value
Noncurrent investments:
Marketable equity securities	0.0	0.0
Cost and equity method investments \| Carrying Amount
Noncurrent investments:
Cost and equity method investments	584.8	568.7
Designated as Hedging Instrument \| Cross-currency interest rate swaps \| Carrying Amount
Noncurrent investments:
Sundry		31.4
Other current liabilities	(33.4)
Other noncurrent liabilities	(26.0)
Designated as Hedging Instrument \| Cross-currency interest rate swaps \| Fair Value
Noncurrent investments:
Sundry		31.4
Other current liabilities	(33.4)
Other noncurrent liabilities	(26.0)
Designated as Hedging Instrument \| Cross-currency interest rate swaps \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Fair Value
Noncurrent investments:
Sundry		0.0
Other current liabilities	0.0
Other noncurrent liabilities	0.0
Designated as Hedging Instrument \| Cross-currency interest rate swaps \| Significant Other Observable Inputs (Level 2) \| Fair Value
Noncurrent investments:
Sundry		31.4
Other current liabilities	(33.4)
Other noncurrent liabilities	(26.0)
Designated as Hedging Instrument \| Cross-currency interest rate swaps \| Significant Unobservable Inputs (Level 3) \| Fair Value
Noncurrent investments:
Sundry		0.0
Other current liabilities	0.0
Other noncurrent liabilities	0.0
Designated as Hedging Instrument \| Interest Rate Contract \| Carrying Amount
Noncurrent investments:
Other receivables	0.8	2.4
Sundry	35.1	37.0
Other current liabilities	(0.2)
Other noncurrent liabilities	(10.5)	(0.5)
Designated as Hedging Instrument \| Interest Rate Contract \| Fair Value
Noncurrent investments:
Other receivables	0.8	2.4
Sundry	35.1	37.0
Other current liabilities	(0.2)
Other noncurrent liabilities	(10.5)	(0.5)
Designated as Hedging Instrument \| Interest Rate Contract \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Fair Value
Noncurrent investments:
Other receivables	0.0	0.0
Sundry	0.0	0.0
Other current liabilities	0.0
Other noncurrent liabilities	0.0	0.0
Designated as Hedging Instrument \| Interest Rate Contract \| Significant Other Observable Inputs (Level 2) \| Fair Value
Noncurrent investments:
Other receivables	0.8	2.4
Sundry	35.1	37.0
Other current liabilities	(0.2)
Other noncurrent liabilities	(10.5)	(0.5)
Designated as Hedging Instrument \| Interest Rate Contract \| Significant Unobservable Inputs (Level 3) \| Fair Value
Noncurrent investments:
Other receivables	0.0	0.0
Sundry	0.0	0.0
Other current liabilities	0.0
Other noncurrent liabilities	0.0	0.0
Not Designated as Hedging Instrument \| Foreign Exchange Contract \| Carrying Amount
Noncurrent investments:
Other receivables	26.8	31.8
Other current liabilities	(36.0)	(21.7)
Not Designated as Hedging Instrument \| Foreign Exchange Contract \| Fair Value
Noncurrent investments:
Other receivables	26.8	31.8
Other current liabilities	(36.0)	(21.7)
Not Designated as Hedging Instrument \| Foreign Exchange Contract \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Fair Value
Noncurrent investments:
Other receivables	0.0	0.0
Other current liabilities	0.0	0.0
Not Designated as Hedging Instrument \| Foreign Exchange Contract \| Significant Other Observable Inputs (Level 2) \| Fair Value
Noncurrent investments:
Other receivables	26.8	31.8
Other current liabilities	(36.0)	(21.7)
Not Designated as Hedging Instrument \| Foreign Exchange Contract \| Significant Unobservable Inputs (Level 3) \| Fair Value
Noncurrent investments:
Other receivables	0.0	0.0
Other current liabilities	$ 0.0	$ 0.0

Financial Instruments (Short-term and Long-term Classification) (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Short-term commercial paper borrowings	$ (2,696.8)	$ (1,299.3)
Carrying Amount
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Long-term debt, including current portion	(10,950.3)	(9,005.9)
Fair Value
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Long-term debt, including current portion	(11,529.9)	(9,419.1)
Quoted Prices in Active Markets for Identical Assets (Level 1) \| Fair Value
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Long-term debt, including current portion	0.0	0.0
Significant Other Observable Inputs (Level 2) \| Fair Value
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Long-term debt, including current portion	(11,529.9)	(9,419.1)
Significant Unobservable Inputs (Level 3) \| Fair Value
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Long-term debt, including current portion	0.0	0.0
Commercial Paper \| Carrying Amount
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Short-term commercial paper borrowings	(2,696.8)	(1,299.3)
Commercial Paper \| Fair Value
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Short-term commercial paper borrowings	(2,690.6)	(1,299.3)
Commercial Paper \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Fair Value
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Short-term commercial paper borrowings	0.0	0.0
Commercial Paper \| Significant Other Observable Inputs (Level 2) \| Fair Value
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Short-term commercial paper borrowings	(2,690.6)	(1,299.3)
Commercial Paper \| Significant Unobservable Inputs (Level 3) \| Fair Value
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Short-term commercial paper borrowings	$ 0.0	$ 0.0

Financial Instruments (Contractual Maturities) (Details) $ in Millions	Dec. 31, 2017 USD ($)
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Total	$ 6,174.9
Less Than 1 Year	1,494.3
1-5 Years	4,200.8
6-10 Years	199.0
More Than 10 Years	$ 280.8

Financial Instruments (Summary of AFS Unrealized Gain(Loss)) (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Unrealized gross gains	$ 184.7	$ 352.6
Unrealized gross losses	47.5	34.1
Fair value of securities in an unrealized gain position	1,434.2	1,869.7
Fair value of securities in an unrealized loss position	$ 4,692.8	$ 3,262.3

Financial Instruments (Investment Portfolio Activity) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Proceeds from sales	$ 5,769.3	$ 3,240.5	$ 4,733.3
Realized gross gains on sales	176.0	30.7	255.1
Realized gross losses on sales	$ 5.8	$ 14.6	$ 10.3

Financial Instruments (Narrative) (Details) € in Millions, ¥ in Millions, £ in Millions, SFr in Millions, $ in Millions	1 Months Ended	12 Months Ended
	Feb. 28, 2015 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2017 EUR (€)	Dec. 31, 2017 JPY (¥)	Dec. 31, 2017 GBP (£)	Dec. 31, 2017 CHF (SFr)	Feb. 27, 2015 USD ($)
Derivative [Line Items]
Amount derecognized		$ 723.2	$ 661.6
Other-than-temporary impairment losses recognized during the year			53.0	$ 42.6
Change on the fair value of contingent consideration		$ 203.9	231.0
Variable rate (in percentage)		28.00%			28.00%	28.00%	28.00%	28.00%
Average remaining maturity of foreign currency derivatives		12 months
Maximum remaining maturity of foreign currency derivatives (in days)		30 days
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net		$ (14.8)
Percentage of nonperforming assets (in percentage)		95.00%
Buy USD Sell Euro
Derivative [Line Items]
Derivative liability, notional amount		$ 2,920.0
Derivative asset, notional amount \| €					€ 2,460
Buy euro Sell US dollar
Derivative [Line Items]
Derivative liability, notional amount \| €					€ 2,830
Derivative asset, notional amount		3,360.0
Buy GBP Sell USD
Derivative [Line Items]
Derivative liability, notional amount \| £							£ 355.6
Derivative asset, notional amount		476.1
Buy US dollar Sell British pound
Derivative [Line Items]
Derivative liability, notional amount		257.8
Derivative asset, notional amount \| £							£ 192.6
Buy USD Sell Japanese Yen
Derivative [Line Items]
Derivative liability, notional amount		393.1
Derivative asset, notional amount \| ¥						¥ 44,410
Buy Swiss francs Sell US dollar
Derivative [Line Items]
Derivative liability, notional amount \| SFr								SFr 147.8
Derivative asset, notional amount		150.2
Cash flow hedges:
Derivative [Line Items]
Payments for (Proceeds from) Hedge, Operating Activities				20.2
Interest Rate Contract
Derivative [Line Items]
Derivative liability, notional amount									$ 1,350.0
Payments for (Proceeds from) Hedge, Operating Activities	$ 206.3
Foreign Currency Denominated Debt
Derivative [Line Items]
Long-term debt		3,700.0	3,340.0
Carrying Amount
Derivative [Line Items]
Derivative asset, notional amount				$ 876.0
Long-term debt		$ 10,950.3	$ 9,005.9

Goodwill and Other Intangibles (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Finite-lived intangible assets:
Total goodwill	$ 4,370.1	$ 3,972.7
Weighted-average useful life (in years)	12 years
Amortization of intangible assets	$ 683.4	687.9	$ 631.8
Maximum
Finite-lived intangible assets:
Useful life (in years)	20 years
Minimum
Finite-lived intangible assets:
Useful life (in years)	3 years
Human pharmaceutical products
Finite-lived intangible assets:
Total goodwill	$ 1,366.8	1,366.4
Animal health products
Finite-lived intangible assets:
Total goodwill	$ 3,003.3	$ 2,606.3

Goodwill and Other Intangibles (Intangibles) (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Finite-lived intangible assets:
Carrying Amount, Gross	$ 7,853.2	$ 7,550.9
Accumulated Amortization	(3,921.2)	(3,373.2)
Carrying Amount, Net	3,932.0	4,177.7
Indefinite-lived intangible assets:	97.2	180.2
Other Intangibles, gross	7,950.4	7,731.1
Other intangibles, net	4,029.2	4,357.9
Marketed products
Finite-lived intangible assets:
Carrying Amount, Gross	7,682.0	7,400.2
Accumulated Amortization	(3,851.1)	(3,301.4)
Carrying Amount, Net	3,830.9	4,098.8
Other
Finite-lived intangible assets:
Carrying Amount, Gross	171.2	150.7
Accumulated Amortization	(70.1)	(71.8)
Carrying Amount, Net	$ 101.1	$ 78.9

Goodwill and Other Intangibles (Narrative) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Finite-lived intangible assets:
Impairment of intangibles	$ 50.0
Goodwill, Impairment Loss	0.0	$ 0.0	$ 0.0
Animal health products
Finite-lived intangible assets:
Impairment of finite-lived intangible	97.5
Impairment of indefinite-lived intangibles	38.0
Impairment of intangibles	$ 135.5

Goodwill and Other Intangibles (Amortization Expense) (Details) $ in Millions	Dec. 31, 2017 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2018	$ 558.2
2019	352.2
2020	350.7
2021	349.0
2022	$ 336.2

Property and Equipment (Details) - USD ($) $ in Millions	12 Months Ended
Property and Equipment (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Abstract]
Land	$ 192.7	$ 197.6
Buildings	7,425.6	6,917.8
Equipment	8,689.0	7,864.7
Construction in progress	1,783.8	1,797.5
Property and equipment, gross	18,091.1	16,777.6
Less accumulated depreciation	(9,264.6)	(8,525.0)
Property and equipment, net	8,826.5	8,252.6
Depreciation expense	763.1	716.2	$ 717.6
Rental expense	224.5	$ 221.0	$ 225.7
Property, Plant and Equipment [Line Items]
2018	130.8
2019	119.2
2020	105.7
2021	94.7
2022	77.1
After 2022	$ 245.7
Building \| Minimum
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	12 years
Building \| Maximum
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	50 years
Equipment \| Minimum
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	3 years
Equipment \| Maximum
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	25 years

Borrowings (Long-term Debt) (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Debt Disclosure [Abstract]
Short-term commercial paper borrowings	$ 2,696.8	$ 1,299.3
0.00 to 7.13 percent long-term notes (due 2018-2047)	10,756.7	8,776.5
Other long-term debt, including capitalized leases	13.6	14.4
Unamortized debt issuance costs	(49.0)	(37.5)
Fair value adjustment on hedged long-term notes	229.0	252.5
Total debt	13,647.1	10,305.2
Less current portion	(3,706.6)	(1,937.4)
Long-term debt	$ 9,940.5	$ 8,367.8

Borrowings (Debt maturities) (Details) $ in Millions	Dec. 31, 2017 USD ($)
Debt Disclosure [Abstract]
2018	$ 1,008.8
2019	604.0
2020	2.7
2021	1.4
2022	$ 1,467.4

Borrowings (narrative) (Details) € in Millions, SFr in Millions	1 Months Ended	3 Months Ended	12 Months Ended
	May 31, 2017 USD ($)	Jun. 30, 2015 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Jun. 30, 2016 CHF (SFr)	Jun. 30, 2015 EUR (€)	Mar. 31, 2015 USD ($)
Debt Instrument [Line Items]
Weighted average interest rate (in percentage)			1.34%
Line of credit facility, remaining borrowing capacity			$ 5,570,000,000
Line of credit facility, outstanding			6,000,000	$ 0
Proceeds from issuance of long-term debt			2,232,000,000	1,206,600,000	$ 4,454,700,000
Repayments of long-term debt		$ 1,950,000,000	630,600,000	200,000	1,955,700,000
Extinguishment of debt		1,650,000,000
Debt extinguishment loss (Note 10)			$ 0	$ 0	166,700,000
Proceeds from issuance of secured debt	$ 2,230,000,000
Description of derivative activity volume percent			28.00%
Debt instrument, interest rate, effective percentage (in percentage)			2.65%	2.51%
Cash payments for interest on borrowings			$ 192,700,000	$ 146,400,000	$ 129,600,000
Maturity Date, 2021
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity			1,200,000,000
Maturity Date, 2017
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity			3,800,000,000
Maturity Date, 2018
Debt Instrument [Line Items]
Debt instrument, face amount						SFr 200.0		$ 600,000,000
Stated interest rate (in percentage)						0.00%		1.25%
Maturity Date, 2024
Debt Instrument [Line Items]
Debt instrument, face amount \| SFr						SFr 600.0
Stated interest rate (in percentage)						0.15%
Maturity Date, 2028
Debt Instrument [Line Items]
Debt instrument, face amount \| SFr						SFr 400.0
Stated interest rate (in percentage)						0.45%
Swiss Franc-Denominated Debt Issuance
Debt Instrument [Line Items]
Proceeds from issuance of long-term debt			1,210,000,000
Maturity Date, 2025
Debt Instrument [Line Items]
Debt instrument, face amount								$ 800,000,000
Stated interest rate (in percentage)								2.75%
Maturity Date, 2045
Debt Instrument [Line Items]
Debt instrument, face amount								$ 800,000,000
Stated interest rate (in percentage)								3.70%
Maturity Date, 2022
Debt Instrument [Line Items]
Debt instrument, face amount \| €							€ 600.0
Stated interest rate (in percentage)							1.00%
Maturity Date, 2026
Debt Instrument [Line Items]
Debt instrument, face amount \| €							€ 750.0
Stated interest rate (in percentage)							1.63%
Maturity Date, 2030
Debt Instrument [Line Items]
Debt instrument, face amount \| €							€ 750.0
Stated interest rate (in percentage)							2.13%
Euro-Denominated Debt Issuance
Debt Instrument [Line Items]
Proceeds from issuance of long-term debt		2,270,000,000
Carrying Amount
Debt Instrument [Line Items]
Long-term debt			$ 10,950,300,000	$ 9,005,900,000
Extinguishment of debt		$ 1,780,000,000
Notes Due in May 2022
Debt Instrument [Line Items]
Debt instrument, face amount	$ 750,000,000
Stated interest rate (in percentage)	2.35%
Notes Due in May 2027
Debt Instrument [Line Items]
Debt instrument, face amount	$ 750,000,000
Stated interest rate (in percentage)	3.10%
Notes Due in 2047
Debt Instrument [Line Items]
Debt instrument, face amount	$ 750,000,000
Stated interest rate (in percentage)	3.95%
Minimum
Debt Instrument [Line Items]
Stated interest rate (in percentage)			0.00%
Maximum
Debt Instrument [Line Items]
Stated interest rate (in percentage)			7.13%

Stock-Based Compensation (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 281.3	$ 255.3	$ 217.8
Tax benefit	$ 70.5	$ 89.4	$ 76.2
Number of shares available for grant (in shares)	98.3
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)	2 years
Weighted average grant date fair value (in usd per share)	$ 73.54	$ 72.00	$ 70.34
Shares issued in period (in shares)	1.3	0.5	0.5
Shares expected to be issued (in shares)	0.8
Total compensation cost not yet recognized	$ 64.1
Period for recognition of the compensation cost not yet recognized (in months)	12 months
Shareholder Value Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)	3 years
Weighted average grant date fair value (in usd per share)	$ 66.25	$ 48.68	$ 54.81
Shares issued in period (in shares)	1.1	1.0	1.4
Shares expected to be issued (in shares)	0.7
Total compensation cost not yet recognized	$ 55.5
Period for recognition of the compensation cost not yet recognized (in months)	20 months
Expected dividend yield (in percentage)	2.50%	2.00%	2.50%
Risk-free interest rate (in percentage)	1.38%	0.92%	0.79%
Volatility (in percentage)	22.91%	21.68%	20.37%
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)	3 years
Weighted average grant date fair value (in usd per share)	$ 72.47	$ 71.46	$ 71.69
Shares issued in period (in shares)	0.9	0.6	0.9
Shares expected to be issued (in shares)	1.0
Total compensation cost not yet recognized	$ 119.0
Period for recognition of the compensation cost not yet recognized (in months)	23 months
Grants in period (in shares)	1.4	1.3	0.9

Shareholders' Equity (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
Shareholders' Equity (Details) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Oct. 31, 2013
Statement [Line Items]
Purchase for treasury		$ 299.8	$ 600.1	$ 749.5
Payments for Repurchase of Common Stock	$ 60.0	$ 299.8	$ 600.1	749.5
Preferred stock, shares authorized (in shares)		5,000,000
Shares issued (in shares)	0	0	0
Shares held in employee trust (in shares)	50,000,000	50,000,000	50,000,000
Employee benefit trust	$ 3,013.2	$ 3,013.2	$ 3,013.2
2013 Share Repurchase Program
Statement [Line Items]
Purchase for treasury		359.8	$ 540.1	$ 749.5
Stock repurchase program, authorized amount (in shares)					$ 5,000.0
Remaining authorized repurchase amount (in shares)		$ 2,050.0

Income Taxes (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
Income Taxes (Narrative) (Details) - USD ($) $ in Millions	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2010
Operating Loss Carryforwards [Line Items]
Provisional amount of income tax									$ 1,914.0	$ 0.0	$ 0.0
Domestic and Puerto Rican companies contribution									15.00%	70.00%	35.00%
Cash payments of income taxes									$ 246.5	$ 700.6	$ 969.0
Income tax at the U.S. federal statutory tax rate									769.1	1,180.9	976.5
Add (deduct):
International operations, including Puerto Rico									(428.9)	(313.7)	(565.2)
General business credits									(66.8)	(58.3)	(69.2)
Non-deductible acquired IPR&D - CoLucid (Note 3)									300.1	0.0	0.0
Other									(86.0)	(172.5)	39.5
Income taxes	$ 1,941.0	$ 36.0	$ 252.5	$ 172.0	$ 120.2	$ 192.7	$ 196.8	$ 126.7	2,401.5	636.4	$ 381.6
Unrecognized tax benefits that would impact effective tax rate	670.9				382.8				670.9	382.8
Year under examination											2015	2013	2012	2010
Settlements									2.4	171.9	$ 446.2
Income tax (benefit) expense									27.4	(52.5)	$ 13.2
Accruals for the payment of interest and penalties	170.7				134.9				170.7	134.9
Tax Cuts And Jobs Act Of 2017, Incomplete Accounting, Transition Tax For Accumulated Foreign Earnings, Provisional Income Tax Expense									3,600.0
Carryforward
Operating Loss Carryforwards [Line Items]
Tax credit carryforward	692.0								692.0
Operating loss carryforwards	3,210.0								3,210.0
Expiration in 10 Years
Operating Loss Carryforwards [Line Items]
Tax credit carryforward	148.9								148.9
Designated Unusable \| Internal Revenue Service (IRS)
Operating Loss Carryforwards [Line Items]
Tax credit carryforward	101.0								101.0
Designated Unusable \| Foreign Tax Authority
Operating Loss Carryforwards [Line Items]
Tax credit carryforward	129.0								129.0
Designated Unusable \| State and Local Jurisdiction
Operating Loss Carryforwards [Line Items]
Tax credit carryforward	313.1								313.1
Deferred tax assets related to state net operating losses	113.2								113.2
Other state carryforwards	2.5								2.5
Expiration within 5 years
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	6.5								6.5
Expiration 5 to 20 Years
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	640.5								640.5
No Expiration
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	$ 2,560.0								$ 2,560.0
Tax Years 2010-2012
Operating Loss Carryforwards [Line Items]
Cash payments of income taxes										150.0
Add (deduct):
Settlements										320.0
Maximum
Add (deduct):
Decrease in unrecognized tax benefits is reasonably possible					$ 140.0					$ 140.0

Income Taxes (Current and Deferred) (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Current:
Federal									$ (100.6)	$ (57.0)	$ 660.5
Foreign									38.5	378.9	422.0
State									4.0	(125.0)	47.5
2017 Tax Act - provisional									3,247.5	0.0	0.0
Total current tax expense									3,189.4	196.9	1,130.0
Deferred:
Federal									801.5	517.0	(689.6)
Foreign									(256.3)	(83.3)	(66.0)
State									0.4	5.8	7.2
2017 Tax Act - provisional									(1,333.5)	0.0	0.0
Total deferred tax (benefit) expense									(787.9)	439.5	(748.4)
Income taxes	$ 1,941.0	$ 36.0	$ 252.5	$ 172.0	$ 120.2	$ 192.7	$ 196.8	$ 126.7	$ 2,401.5	$ 636.4	$ 381.6

Income Taxes (Deferred tax asset and liabilities) (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Deferred tax assets:
Compensation and benefits	$ 1,021.7	$ 1,126.0
Purchases of intangible assets	443.1	620.3
Tax credit carryforwards and carrybacks	473.0	458.9
Tax loss carryforwards and carrybacks	501.4	327.3
Contingent consideration	41.8	142.7
Product return reserves	88.4	128.1
Other comprehensive loss on hedging transactions	68.9	123.3
Debt	53.5	95.3
Other	555.8	587.3
Total gross deferred tax assets	3,247.6	3,609.2
Valuation allowances	(709.1)	(648.3)
Total deferred tax assets	2,538.5	2,960.9
Deferred tax liabilities:
Inventories	(654.8)	(955.5)
Unremitted earnings	(16.6)	(673.6)
Intangibles	(314.6)	(604.2)
Property and equipment	(282.1)	(398.6)
Financial instruments	(41.5)	(279.3)
Prepaid employee benefits	(231.5)	(265.3)
Total deferred tax liabilities	(1,541.1)	(3,176.5)
Deferred Tax Assets, Net	$ 997.4
Deferred tax liabilities		$ (215.6)

Income Taxes (Unrecognized benefits) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Unrecognized Tax Benefits	$ 853.4	$ 1,066.6	$ 1,338.8
Additions based on tax positions related to the current year	133.8	73.4	131.3
Additions for tax positions of prior years	97.5	14.8	116.6
Reductions for tax positions of prior years	(59.3)	(15.2)	(45.2)
Settlements	(2.4)	(171.9)	(446.2)
Lapses of statutes of limitation	(19.3)	(110.0)	(4.0)
Changes related to the impact of foreign currency translation, increase	10.8
Changes related to the impact of foreign currency translation, decrease		(4.3)	(24.7)
Unrecognized Tax Benefits	$ 1,014.5	$ 853.4	$ 1,066.6

Retirement Benefits (Schedule of Benefit Obligations and Plan Assets) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Change in benefit obligation:
Curtailment	$ 159.0
Special termination benefit	354.7
Defined Benefit Pension Plans
Change in benefit obligation:
Benefit obligation at beginning of year	12,455.9	$ 11,719.2
Service cost	331.3	277.7	$ 315.7
Interest cost	413.4	420.8	476.8
Actuarial (gain) loss	1,580.5	806.5
Benefits paid	(486.3)	(454.5)
Plan amendments	0.0	0.0
Curtailment	90.4	0.0
Special termination benefit	317.2	0.0
Foreign currency exchange rate changes and other adjustments	396.0	(313.8)
Benefit obligation at end of year	15,098.4	12,455.9	11,719.2
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Fair value of plan assets at beginning of year	10,179.7	9,995.6
Actual return on plan assets	1,447.6	853.4
Employer contribution	414.3	110.2
Benefits paid	486.3	454.5
Foreign currency exchange rate changes and other adjustments	289.2	(325.0)
Fair value of plan assets at end of year	11,844.5	10,179.7	9,995.6
Funded status	(3,253.9)	(2,276.2)
Unrecognized net actuarial loss	5,645.5	4,915.7
Unrecognized prior service (benefit) cost	15.2	21.7
Net amount recognized	2,406.8	2,661.2
Retiree Health Benefit Plans
Change in benefit obligation:
Benefit obligation at beginning of year	1,494.6	1,467.4
Service cost	46.4	39.1	45.1
Interest cost	52.9	53.2	62.6
Actuarial (gain) loss	40.0	50.9
Benefits paid	(60.1)	(59.8)
Plan amendments	0.0	(35.8)
Curtailment	105.2	0.0
Special termination benefit	37.5	0.0
Foreign currency exchange rate changes and other adjustments	12.0	(20.4)
Benefit obligation at end of year	1,728.5	1,494.6	1,467.4
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Fair value of plan assets at beginning of year	1,961.2	1,943.7
Actual return on plan assets	462.0	68.9
Employer contribution	9.1	8.4
Benefits paid	60.1	59.8
Foreign currency exchange rate changes and other adjustments	0.2	0.0
Fair value of plan assets at end of year	2,372.4	1,961.2	$ 1,943.7
Funded status	643.9	466.6
Unrecognized net actuarial loss	182.0	458.8
Unrecognized prior service (benefit) cost	(395.0)	(525.1)
Net amount recognized	$ 430.9	$ 400.3

Retirement Benefits (Schedule of Components in Consolidated Balance Sheets) (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Line Items] [Line Items]
Accrued retirement benefits	$ (3,513.9)	$ (2,453.9)
Defined Benefit Pension Plans
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Line Items] [Line Items]
Sundry	106.8	29.7
Other current liabilities	(64.8)	(68.0)
Accrued retirement benefits	(3,295.9)	(2,237.9)
Accumulated other comprehensive (income) loss before income taxes	5,660.7	4,937.4
Net amount recognized	2,406.8	2,661.2
Unrecognized net actuarial loss	(366.1)
Unrecognized prior service (benefit) cost	5.1
Total	371.2
Retiree Health Benefit Plans
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Line Items] [Line Items]
Sundry	869.0	689.3
Other current liabilities	(7.1)	(6.7)
Accrued retirement benefits	(218.0)	(216.0)
Accumulated other comprehensive (income) loss before income taxes	(213.0)	(66.3)
Net amount recognized	430.9	$ 400.3
Unrecognized net actuarial loss	(9.5)
Unrecognized prior service (benefit) cost	(81.3)
Total	$ (71.8)

Retirement Benefits (Schedule of Weighted Average Assumptions) (Details)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Defined Benefit Pension Plans
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Line Items] [Line Items]
Discount rate for benefit obligation (in percentage)	3.40%	3.90%	4.30%
Discount rate for net benefit costs (in percentage)	3.90%	4.30%	4.00%
Rate of compensation increase for benefit obligation (in percentage)	3.40%	3.40%	3.40%
Rate of compensation increase for net benefit costs (in percentage)	3.40%	3.40%	3.40%
Expected return on plan assets for net benefit costs (in percentage)	7.40%	7.40%	7.40%
Retiree Health Benefit Plans
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Line Items] [Line Items]
Discount rate for benefit obligation (in percentage)	3.70%	4.30%	4.50%
Discount rate for net benefit costs (in percentage)	4.30%	4.50%	4.10%
Expected return on plan assets for net benefit costs (in percentage)	8.00%	8.00%	8.00%

Retirement Benefits (Schedule of Expected Benefit Payments, Contributions and Expense) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Defined Benefit Plan, Plan with Benefit Obligation in Excess of Plan Assets [Abstract]
Projected benefit obligation	$ 13,025.0	$ 10,597.0
Fair value of plan assets	9,664.3	8,291.2
Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment and Tax [Abstract]
Total other comprehensive income (loss) during period	(576.6)	(512.8)	$ 572.9
Defined Benefit Pension Plans
Defined Benefit Plan, Expected Future Benefit Payment [Abstract]
2018	(603.9)
2019	(601.4)
2020	(611.6)
2021	(621.4)
2022	(639.5)
2023-2027	(3,455.8)
Defined Benefit Plan, Pension Plan with Accumulated Benefit Obligation in Excess of Plan Assets [Abstract]
Accumulated benefit obligation	11,956.7	9,805.4
Fair value of plan assets	9,639.4	8,285.2
Components of net periodic (benefit) cost:
Service cost	331.3	277.7	315.7
Interest cost	413.4	420.8	476.8
Expected return on plan assets	(776.0)	(752.1)	(782.3)
Amortization of prior service (benefit) cost	5.7	11.8	10.4
Recognized actuarial loss	288.2	285.6	383.2
Curtailment	(93.5)	0.0	0.0
Special termination benefit	317.2	0.0	0.0
Net periodic (benefit) cost	673.3	243.8	403.8
Unrecognized net actuarial loss	(366.1)
Unrecognized prior service (benefit) cost	5.1
Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment and Tax [Abstract]
Actuarial gain (loss) arising during period	(915.1)	(725.2)	120.4
Plan amendments during period	0.0	0.0	0.4
Curtailment	3.2	0.0	0.0
Amortization of prior service (benefit) cost included in net income	5.7	11.8	10.4
Amortization of net actuarial loss included in net income	288.2	285.6	383.2
Foreign currency exchange rate changes and other	(105.3)	75.6	58.8
Total other comprehensive income (loss) during period	(723.3)	(352.2)	573.2
Retiree Health Benefit Plans
Defined Benefit Plan, Expected Future Benefit Payment [Abstract]
2018	(92.8)
2019	(94.8)
2020	(96.5)
2021	(98.7)
2022	(98.5)
2023-2027	(496.3)
Defined Benefit Plan, Pension Plan with Accumulated Benefit Obligation in Excess of Plan Assets [Abstract]
Accumulated benefit obligation	225.1	222.7
Fair value of plan assets	0.0	0.0
Components of net periodic (benefit) cost:
Service cost	46.4	39.1	45.1
Interest cost	52.9	53.2	62.6
Expected return on plan assets	(160.7)	(150.2)	(150.0)
Amortization of prior service (benefit) cost	(90.0)	(85.8)	(91.1)
Recognized actuarial loss	18.4	19.1	38.0
Curtailment	(65.5)	0.0	0.0
Special termination benefit	37.5	0.0	0.0
Net periodic (benefit) cost	(30.0)	(124.6)	(95.4)
Unrecognized net actuarial loss	(9.5)
Unrecognized prior service (benefit) cost	(81.3)
Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment and Tax [Abstract]
Actuarial gain (loss) arising during period	261.3	(132.2)	48.6
Plan amendments during period	0.0	35.8	0.0
Curtailment	(39.7)	0.0	0.0
Amortization of prior service (benefit) cost included in net income	(90.0)	(85.8)	(91.1)
Amortization of net actuarial loss included in net income	18.4	19.1	38.0
Foreign currency exchange rate changes and other	(3.3)	2.5	4.2
Total other comprehensive income (loss) during period	$ 146.7	$ (160.6)	$ (0.3)

Retirement Benefits (Narrative) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Defined Benefit Plan Disclosure [Line Items]
Curtailment	$ 159.0
Special termination benefit	354.7
Total accumulated benefit obligation for our defined benefit pension plans	13,900.0	$ 11,490.0
Expense under the plans	$ 169.1	$ 175.0	$ 162.4
Percentage of global investments in plan assets (in percentage)	80.00%
Expected contribution	$ 50.0
Marketable equity securities
Defined Benefit Plan Disclosure [Line Items]
Plan assets, target allocation (in percentage)	80.00%
Developed markets
Defined Benefit Plan Disclosure [Line Items]
Plan assets, target allocation (in percentage)	20.00%

Contingencies (Details) $ in Millions, R$ in Billions	1 Months Ended	12 Months Ended
Contingencies (Details) $ in Millions, R$ in Billions	Apr. 30, 2015 USD ($)	Dec. 31, 2017 USD ($) lawsuit plaintiff case	Dec. 31, 2017 BRL (R$) lawsuit plaintiff case
Actos \| Product Liability Litigation
Loss Contingencies [Line Items]
Number of cases		6,700	6,700
Cymbalta \| Product Liability Litigation
Loss Contingencies [Line Items]
Number of lawsuits \| lawsuit		140	140
Number of plaintiffs \| plaintiff		1,470	1,470
Compensatory Damages \| Actos
Loss Contingencies [Line Items]
Litigation settlement, amount \| $	$ 2,400
Canada \| Actos \| Product Liability Litigation
Loss Contingencies [Line Items]
Number of cases		3	3
Ontario \| Actos \| Product Liability Litigation
Loss Contingencies [Line Items]
Number of cases		1	1
Quebec \| Actos \| Product Liability Litigation
Loss Contingencies [Line Items]
Number of cases		1	1
Alberta \| Actos \| Product Liability Litigation
Loss Contingencies [Line Items]
Number of cases		1	1
California \| Cymbalta \| Product Liability Litigation
Loss Contingencies [Line Items]
Number of lawsuits \| plaintiff		40	40
Brazil \| Employee Litigation
Loss Contingencies [Line Items]
Number of lawsuits \| lawsuit		30	30
Damages awarded, value		$ 300	R$ 1.0

Other Comprehensive Income (Loss) (Roll-forward) (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]

Other comprehensive income (loss) before reclassifications

$ 14,080.5

114.0

$ (895.8)

$ (705.1)

Net amount reclassified from accumulated other comprehensive loss

60.5

250.7

116.2

^[1]

174.5

(645.1)

(588.9)

Accumulated other comprehensive loss

11,667.9

14,080.5

5,718.6

5,274.0

Accumulated Other Comprehensive Loss

AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]

Reclassifications of stranded tax effects - provisional (Note 2)

(5,225.8)

(4,580.7)

(3,991.8)

(643.6)

Foreign Currency Translation Gains (Losses)

(5,694.9)

(5,225.8)

(4,580.7)

AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]

Other comprehensive income (loss) before reclassifications

(1,867.3)

(1,360.2)

(498.4)

664.6

(581.6)

(861.8)

Net amount reclassified from accumulated other comprehensive loss

8.1

74.5

0.0

Reclassifications of stranded tax effects - provisional (Note 2)

672.7

(507.1)

(861.8)

(38.8)

Unrealized Net Gains (Losses) on Securities

(1,233.4)

(1,867.3)

(1,360.2)

AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]

Other comprehensive income (loss) before reclassifications

224.0

10.1

99.7

(15.7)

206.7

38.6

Net amount reclassified from accumulated other comprehensive loss

(110.6)

7.2

(128.2)

Reclassifications of stranded tax effects - provisional (Note 2)

(126.3)

213.9

(89.6)

15.8

Effective Portion of Cash Flow Hedges

113.5

224.0

10.1

AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]

Other comprehensive income (loss) before reclassifications

(210.9)

(218.5)

(191.1)

8.5

(2.2)

(36.9)

Net amount reclassified from accumulated other comprehensive loss

9.6

9.8

9.5

Reclassifications of stranded tax effects - provisional (Note 2)

18.1

7.6

(27.4)

(41.5)

Defined Benefit Pension and Retiree Health Benefit Plans

(234.3)

(210.9)

(218.5)

AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]

Other comprehensive income (loss) before reclassifications

(3,371.6)

(3,012.1)

(3,402.0)

(543.4)

(518.7)

155.0

Net amount reclassified from accumulated other comprehensive loss

153.4

159.2

234.9

Reclassifications of stranded tax effects - provisional (Note 2)

(390.0)

(359.5)

389.9

(579.1)