EMPLOYEE STOCK BENEFIT PLANS

12 Months Ended

Dec. 31, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

EMPLOYEE STOCK BENEFIT PLANS

On May 1, 2012, the shareholders approved the 2012 Stock Award and Incentive Plan (the 2012 Plan), which replaced the 2007 Stock Incentive Plan. Shares of common stock reserved for issuance pursuant to stock plans, options and conversions of preferred stock were 250 million at December 31, 2014. Shares available to be granted for the active plans were 112 million at December 31, 2014. Shares are issued from treasury stock. Shares tendered in a prior year to pay the purchase price of options and shares previously utilized to satisfy withholding tax obligations upon exercise continue to be available and reserved.

Executive officers and key employees may be granted options to purchase common stock at no less than the market price on the date the option is granted. Options generally become exercisable ratably over four years and have a maximum term of ten years. The plan provides for the granting of stock appreciation rights whereby the grantee may surrender exercisable rights and receive common stock and/or cash measured by the excess of the market price of the common stock over the option exercise price. The Company has not granted any stock options or stock appreciation rights since 2009.

Common stock or stock units may be granted to key employees, subject to restrictions as to continuous employment. Generally, vesting occurs ratably over a four year period from grant date. Compensation expense is recognized over the vesting period. A stock unit is a right to receive stock at the end of the specified vesting period but has no voting rights.

Market share units are granted to executives. Vesting is conditioned upon continuous employment until the vesting date and payout factor is at least 60% of the share price on the award date. The payout factor is the share price on vesting date divided by share price on award date, with a maximum of 200%. The share price used in the payout factor is calculated using an average of the closing prices on the grant or vest date, and the nine trading days immediately preceding the grant or vest date. Vesting occurs ratably over four years.

Performance share units are granted to executives and have a three year cycle and are granted as a target number of units subject to adjustment based on company performance. Shares ultimately issued for awards granted prior to 2014 are calculated based on actual performance compared to earnings targets and other performance criteria established at the beginning of each year of the three year performance cycle. Shares ultimately issued for awards granted in 2014 are based on the actual performance compared to earnings target and other performance criteria established for 2014 and a subsequent adjustment for the Company's three-year total shareholder return relative to a peer group of companies. Vesting occurs on the third anniversary of the grant date.

Stock-based compensation expense for awards ultimately expected to vest is recognized over the vesting period. The acceleration of unvested stock options and restricted stock units in connection with the acquisition of Amylin resulted in stock-based compensation expense in 2012. Forfeitures are estimated based on historical experience at the time of grant and revised in subsequent periods if actual forfeitures differ from those estimates. Other information related to stock-based compensation benefits are as follows:

	Years Ended December 31,
Dollars in Millions	2014		2013		2012
Stock options	$	—	$	2	$	7
Restricted stock units	75		74		64
Market share units	34		29		23
Performance share units	104		86		60
Amylin stock options and restricted stock units (see Note 4)	—		—		94
Total stock-based compensation expense	$	213	$	191	$	248
Income tax benefit	$	71	$	64	$	82

	Stock Options				Restricted Stock Units				Market Share Units				Performance share units
	Number of Options Outstanding		Weighted- Average Exercise Price of Shares		Number of Nonvested Awards		Weighted- Average Grant-Date Fair Value		Number of Nonvested Awards		Weighted- Average Grant-Date Fair Value		Number of Nonvested Awards		Weighted- Average Grant-Date Fair Value
Shares in Thousands
Balance at January 1, 2014	23,123		$	22.88	6,552		$	32.81	1,832		$	33.82	4,292		$	33.75
Granted	—		—		1,903		52.22		886		55.44		2,288		55.17
Released/Exercised	(6,635	)	23.68		(2,474	)	27.51		(1,674	)	29.32		(2,743	)	32.80
Adjustments for actual payout	—		—		—		—		1,212		27.40		(120	)	33.08
Forfeited/Canceled	(911	)	27.25		(734	)	23.75		(295	)	40.34		(298	)	53.68
Balance at December 31, 2014	15,577		22.29		5,247		43.61		1,961		42.47		3,419		47.12
Vested or expected to vest	15,577		22.29		4,847		43.61		1,812		42.47		3,159		47.12

	Restricted		Market		Performance
Dollars in Millions	Stock Units		Share Units		Share Units
Unrecognized compensation cost	$	152	$	36	$	88
Expected weighted-average period in years of compensation cost to be recognized	2.6		2.6		1.7

Amounts in Millions, except per share data	2014		2013		2012
Weighted-average grant date fair value (per share):
Restricted stock units	$	52.22	$	38.73	$	32.71
Market share units	55.44		37.40		31.85
Performance share units	55.17		37.40		32.33
Fair value of options or awards that vested during the year:
Stock options	$	—	$	11	$	23
Restricted stock units	68		74		74
Market share units	49		30		18
Performance share units	90		90		56
Total intrinsic value of stock options exercised during the year	$	199	$	323	$	153

The fair value of awards approximates the closing trading price of BMS's common stock on the grant date. The fair value of market share units also considers the payout formula and probability of satisfying market conditions.

The following table summarizes significant ranges of outstanding and exercisable options at December 31, 2014 (amounts in millions, except per share data):

	Options Outstanding and Exercisable
Range of Exercise Prices	Number Outstanding and Exercisable (in thousands)	Weighted-Average Remaining Contractual Life (in years)	Weighted-Average Exercise Price  Per Share		Aggregate Intrinsic Value
$1 - $20	4,886	4.17	$	17.53	$	203
$20 - $30	10,691	1.97	24.46		369
	15,577	2.66	$	22.29	$	572

The aggregate intrinsic value in the preceding table represents the total pre-tax intrinsic value, based on the closing stock price of $59.03 on December 31, 2014.