The following table provides the amounts and classification of payments (income/(expense)), between us and our collaboration partners: | ||||||||||||
Year Ended December 31, | ||||||||||||
(MILLIONS OF DOLLARS) | 2013 | 2012 | 2011 | |||||||||
Revenues—Revenues(a) | $ | 1,153 | $ | 1,640 | $ | 1,426 | ||||||
Revenues—Alliance revenues(b) | 2,628 | 3,492 | 3,630 | |||||||||
Total revenues from collaborative arrangements | 3,781 | 5,132 | 5,056 | |||||||||
Cost of sales(c) | (333 | ) | (362 | ) | (420 | ) | ||||||
Selling, informational and administrative expenses(d) | (279 | ) | (290 | ) | (237 | ) | ||||||
Research and development expenses(e) | (73 | ) | (74 | ) | (299 | ) | ||||||
Other (income)/deductions—net(f) | 103 | (15 | ) | 34 | ||||||||
(a) | Represents sales to our partners of products manufactured by us. |
(b) | Substantially all relate to amounts earned from our partners under co-promotion agreements. The decline in 2013 reflects declines in Enbrel (as a result of the expiration of our co-promotion agreement on October 31, 2013 in the U.S. and Canada) and Spiriva (as a result of the near-term expiration of the co-promotion collaboration in the U.S. and certain European countries, combined with the expiration of the collaboration in Australia, Canada and certain other European countries). |
(c) | Primarily relates to royalties earned by our partners and cost of sales associated with inventory purchased from our partners. |
(d) | Represents net reimbursements to our partners for selling, informational and administrative expenses incurred. |
(e) | Primarily relates to net reimbursements, as well as upfront payments and pre-approval milestone payments earned by our partners. The upfront and milestone payments were as follows: $67 million in 2013, $44 million in 2012 and $210 million in 2011. |
(f) | In 2013, includes royalties earned on sales of Enbrel in the U.S. and Canada after October 31, 2013. On that date, our co-promotion agreement for Enbrel in the U.S. and Canada expired, and we became entitled to royalties for a 36-month period |