2012 Annual Report  Contractual Obligations  Payments due by period for our contractual obligations at December 31, 2012 were as follows:  (a) Includes estimated future interest payments on our short-term and long-term debt securities. Also includes accrued interest payable recognized on our  consolidated balance sheets, which consists primarily of accrued interest on short-term and long-term debt as well as accrued periodic cash settlements of  derivatives.  (b) Due to the uncertainty related to the timing of the reversal of uncertain tax positions, only the short-term uncertain tax benefits have been provided in the table  above. See Note 7 “Income Taxes” for further detail.  (c)  The table above excludes future contributions by us to our pensions, postretirement and postemployment benefit plans. Required contributions are contingent  upon numerous factors including minimum regulatory funding requirements and the funded status of each plan. Due to the uncertainty of such future  obligations, they are excluded from the table. Contributions for both U.S. and international plans are expected to be $100 million in 2013. See Note 18  “Pension, Postretirement and Postemployment Liabilities” for further detail.  In addition to the above, we are committed to $6.0 billion (in the aggregate) of potential future research and development milestone  payments to third parties as part of in-licensing and development programs. Early stage milestones, defined as milestones achieved  through Phase III clinical trials, comprised $1.1 billion of the total committed amount. Late stage milestones, defined as milestones  achieved post Phase III clinical trials, comprised $4.9 billion of the total committed amount. Payments under these agreements  generally are due and payable only upon achievement of certain developmental and regulatory milestones, for which the specific  timing cannot be predicted. In addition to certain royalty obligations that are calculated as a percentage of net sales, some of these  agreements also provide for sales-based milestones aggregating $2.1 billion that we would be obligated to pay to alliance partners  upon achievement of certain sales levels. We also have certain manufacturing, development, and commercialization obligations in  connection with alliance arrangements. It is not practicable to estimate the amount of these obligations. See Note 3 “Alliances and  Collaborations” for further information regarding our alliances.  For a discussion of contractual obligations, see Note 18 “Pension, Postretirement and Postemployment Liabilities,” Note 9 “Financial  Instruments” and Note 20 “Leases.”  As previously disclosed, on August 4, 2004, we entered into a final settlement with the SEC, concluding an investigation concerning  certain wholesaler inventory and accounting matters. The settlement was reached through a Consent, a copy of which was attached as  Exhibit 10 to our quarterly report on Form 10-Q for the period ended September 30, 2004.  Under the terms of the Consent, we agreed, subject to certain defined exceptions, to limit sales of all products sold to our direct  customers (including wholesalers, distributors, hospitals, retail outlets, pharmacies and government purchasers) based on expected  demand or on amounts that do not exceed approximately one month of inventory on hand, without making a timely public disclosure  of any change in practice. We also agreed in the Consent to certain measures that we have implemented including: (a) establishing a  formal review and certification process of our annual and quarterly reports filed with the SEC; (b) establishing a business risk and  disclosure group; (c) retaining an outside consultant to comprehensively study and help re-engineer our accounting and financial  reporting processes; (d) publicly disclosing any sales incentives offered to direct customers for the purpose of inducing them to  purchase products in excess of expected demand; and (e) ensuring that our budget process gives appropriate weight to inputs that  come from the bottom to the top, and not just from the top to the bottom, and adequately documenting that process.  We have established a company-wide policy to limit our sales to direct customers for the purpose of complying with the Consent. This policy includes the adoption of various procedures to monitor and limit sales to direct customers in accordance with the terms of  the Consent. These procedures include a governance process to escalate to appropriate management levels potential questions or  concerns regarding compliance with the policy and timely resolution of such questions or concerns. In addition, compliance with the  policy is monitored on a regular basis.  SEC Consent Order Obligations Expiring by Period Dollars in Millions Total 2013 2014 2015 2016 2017 Later Years  Short-term borrowings $   162 $  162 $  - $  - $  - $   - $  -  Long-term debt   6,631  648   27  -  659  750  4,547  Interest on long-term debt$^{(a)}$   4,814  217   237  237  240  215  3,668  Operating leases   756   167   152   130   123   76   108  Purchase obligations   2,089  874   506  336  198  128  47  Uncertain tax positions$^{(b)}$   83  83   -  -  -  -  -  Other long-term liabilities   475  -   101  58  41  44  231  Total$^{(c)}$  $   15,010 $  2,151 $  1,023 $  761 $  1,261 $   1,213 $  8,601  21 