2012 Annual Report  BMS announced the discontinued development of BMS-986094 (formerly known as INX-189), a nucleotide polymerase (NS5B)  inhibitor that was in Phase II development for the treatment of the hepatitis C virus infection on August 23, 2012. The decision was  made in the interest of patient safety, based on a rapid, thorough and ongoing assessment of patients in a Phase II study that was  voluntarily suspended on August 1, 2012. BMS acquired BMS-986094 with its acquisition of Inhibitex in February 2012. As a result  of the termination of this development program, a $1,830 million pre-tax impairment charge was recognized for the IPRD intangible  asset.  $^{ }$An impairment charge of $120 million was recognized in 2012 related to a partial write-down to fair value of developed technology  costs related to a non-key product ( Recothrom ) acquired in the acquisition of ZymoGenetics. The developed technology impairment  charge resulted from continued competitive pricing pressures.  $^{ }$Note 14 ACCRUED EXPENSES  Accrued expenses include:  December 31,  Dollars in Millions 2012 2011 Employee compensation and benefits $   844  $  783  Royalties   152   571  Accrued research and development   418   450  Restructuring - current   120   58  Pension and postretirement benefits   49   46  Accrued litigation   162   65  Other   828   818  Total accrued expenses  $   2,573  $  2,791  $^{ }$Note 15 SALES REBATES AND RETURN ACCRUALS  $^{ }$Reductions to trade receivables and accrued rebates and returns liabilities are as follows:  December 31,  Dollars in Millions 2012 2011 Charge-backs related to government programs $   41  $  51  Cash discounts   13   28  Reductions to trade receivables  $   54  $  79  Managed healthcare rebates and other contract discounts  $   175  $  417  Medicaid rebates   351   411  Sales returns   345   161  Other adjustments   183   181  Accrued rebates and returns  $   1,054  $  1,170  $^{ }$Deferred income includes:  $^{ }$Note 16 DEFERRED INCOME  December 31,  Dollars in Millions 2012 2011 Upfront, milestone and other licensing receipts $   4,346  $  882  Atripla deferred revenue  339   113  Gain on sale-leaseback transactions   99   120  Other   65   88  Total deferred income  $   4,849  $  1,203  Current portion  $   825  $  337  Non-current portion   4,024   866  $^{ }$Upfront, milestone and other licensing receipts are amortized over the expected life of the product. See Note 3 “Alliances and  Collaborations” for information pertaining to revenue recognition and other transactions including $3.5 billion of proceeds received  from AstraZeneca related to the Amylin collaboration during the 2012. Deferred gains on several sale-leaseback transactions are  amortized over the remaining lease terms of the related facilities through 2018. Deferred income amortization was $308 million in  2012, $173 million in 2011 and $137 million in 2010.  55 