2012 Annual Report  Our investment portfolio includes non-current marketable securities which are subject to changes in fair value as a result of interest  rate fluctuations and other market factors, which may impact our results of operations. Our investment policy places limits on these  investments and the amount and time to maturity of investments with any institution. The policy also requires that investments are  only entered into with corporate and financial institutions that meet high credit quality standards. See Note 9 “Financial Instruments.”  We currently have two separate $1.5 billion five-year revolving credit facilities from a syndicate of lenders, including a new facility  entered into in July 2012. The facilities provide for customary terms and conditions with no financial covenants and are extendable on  any anniversary date with the consent of the lenders. No borrowings were outstanding under either revolving credit facility at  December 31, 2012 or 2011.  In connection with the 2012 Amylin acquisition, BMS issued $2.0 billion of senior unsecured notes in a registered public offering  consisting of $750 million in aggregate principal amount of 0.875% Notes due 2017, $750 million in aggregate principal amount of  2.000% Notes due 2022 and $500 million in aggregate principal amount of 3.250% Notes due 2042.  BMS completed its acquisition of Amylin for an aggregate purchase price of $5.3 billion in 2012. BMS also assumed Amylin’s net  debt and a contractual payment obligation to Lilly, together totaling $2.0 billion (substantially all of which was repaid during 2012). The acquisition was financed through the use of existing cash balances, the issuance of commercial paper and long-term debt  borrowings described above.  Additional regulations in the U.S. could be passed in the future which could further reduce our results of operations, operating cash  flow, liquidity and financial flexibility. We also continue to monitor the potential impact of the economic conditions in certain  European countries and the related impact on prescription trends, pricing discounts, creditworthiness of our customers, and our ability  to collect outstanding receivables from our direct customers. Currently, we believe these economic conditions in the EU will not have  a material impact on our liquidity, cash flow or financial flexibility.  As a mechanism to limit our overall credit exposures, and an additional source of liquidity, we sell trade receivables to third parties,  principally from wholesalers in Japan and certain government-backed entities in Italy, Portugal, and Spain. Sales of trade receivables  in Italy, Portugal and Spain were $322 million in 2012, $484 million in 2011 and $476 million in 2010. Sales of receivables in Japan  were $634 million in 2012, $593 million in 2011 and $456 million in 2010. Our sales agreements do not allow for recourse in the  event of uncollectibility and we do not retain interest to the underlying assets once sold.  We continue to manage our operating cash flows with initiatives designed to improve working capital items that are most directly  affected by changes in sales volume, such as receivables, inventories, and accounts payable. During 2012, the following changes in  receivables, inventories and accounts payable resulted primarily from the rapid reduction of  Plavix  sales, the acquisition of Amylin  and timing of expenditures in the ordinary course of business.  Moody’s Investors Service long-term and short-term credit ratings are currently A2 and Prime-1, respectively, and their long-term  credit outlook remains stable. Standard & Poor’s (S&P) long-term and short-term credit ratings are currently A+ and A-1+,  respectively, and their long-term credit outlook remains stable. S&P upgraded our short-term credit rating from A-1 to A-1+ in May  2012. Fitch Ratings (Fitch) long-term and short-term credit ratings are currently A and F1, respectively, and their long-term credit  outlook remains negative. Fitch lowered our long-term credit rating from A+ to A in July 2012. Our credit ratings are considered  investment grade. Our long-term ratings designate that we have a low default risk but are somewhat susceptible to adverse effects of  changes in circumstances and economic conditions. Our short-term ratings designate that we have the strongest capacity for timely  repayment.  % of Trailing % of Trailing December 31,  Twelve Month December 31,  Twelve Month Dollars in Millions 2012  Net Sales 2011  Net Sales Net trade receivables $  1,708  9.7 % $   2,250  10.6 % Inventories   1,657  9.4 %  1,384  6.5 Accounts payable   (2,202)  (12.5)%  (2,603)  (12.2)% Total  $  1,163  6.6 % $   1,031  4.9 % Credit Ratings  19 