Vendor Incentives - MASB

PHARMACEUTICAL SEGMENT MEDICAL DEVICES AND DIAGNOSTICS SEGMENT
Balance at Balance at Balance at Balance at
Beginning Payments/ Beginning Beginning Payments/ Beginning
(Dollars in Millions) of Period Accurals Other of Period (Dollars in Millions) of Period Accurals Other of Period
2009 2009
Accrued rebates (1) $ 1,261 3,975 (4,172) 1,064 Accrued rebates (1) $ 416 2,229 (2,191) 454
Accrued returns 490 147 (295) 342 Accrued returns 189 74 (43) 220
Accrued promotions 107 330 (353.00) 84 Accrued promotions 47 120 (94.00) 73
Subtotal 1,858 4,452 (4,820) 1,490 Subtotal 652 2,423 (2,328) 747
Reserve for doubtful accounts 48 37 (2) 83 Reserve for doubtful accounts 109 50 (16) 143
Reserve for cash discounts 23 462 (437) 48 Reserve for cash discounts 34 416 (418) 32
Total $ 1,929 4,951 (5,259) 1,621 Total $ 795 2,889 (2,762) 922
2008 2008
Accrued rebates (1) $ 1,249 3,331 (3,319) 1,261 Accrued rebates (1) $ 336 1,947 (1,867) 416
Accrued returns 345 168 (23) 490 Accrued returns 190 99 (100) 189
Accrued promotions 263 414 (570) 107 Accrued promotions 18 208 (179) 47
Subtotal $ 1,857 3,913 (3,912) 1,858 Subtotal $ 544 2,254 (2,146) 652
Reserve for doubtful accounts 26 24 (2) ( ) 48 Reserve for doubtful accounts 96 36 (23) ( ) 109
Reserve for cash discounts 24 376 (377) 23 Reserve for cash discounts 24 257 (247) 34
Total $ 1,907 4,313 (2) (4,291) 1,929 Total $ 664 2,547 (2) (2,416) 795
(1) Includes reserve for customer rebates of $327 million at January 3, 2010 and $344
(1) Includes reserve for customer rebates of $311 million at January 3, 2010 and $304
million at December 28, 2008, recorded as a contra asset. million at December 28, 2008, recorded as a contra asset.
(2) Includes $115 million adjustment related to previously estimated accrued sales reserves.
(2) Includes $56 million adjustment related to previously estimated accrued sales reserve.
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