RESTRUCTURING

6 Months Ended

Jun. 30, 2021

Restructuring and Related Activities Disclosure [Text Block]

RESTRUCTURING

Celgene Acquisition Plan

In 2019, a restructuring and integration plan was implemented as an initiative to realize sustainable run rate synergies resulting from cost savings and avoidance from the Celgene acquisition which is currently expected to be approximately $3.0 billion. The synergies are expected to be realized in Cost of products sold (10%), Marketing, selling and administrative expenses (55%) and Research and development expenses (35%). Charges of approximately $3.0 billion are expected to be incurred through 2022. Cumulative charges of approximately $2.3 billion have been recognized including integration planning and execution expenses, employee termination benefit costs and accelerated stock-based compensation, contract termination costs and other shutdown costs associated with site exits. Cash outlays in connection with these actions are expected to be approximately $2.5 billion. Employee workforce reductions were approximately 240 and 900 for the six months ended June 30, 2021 and 2020, respectively.

MyoKardia Acquisition Plan

In 2020, a restructuring and integration plan was initiated to realize expected cost synergies resulting from cost savings and avoidance from the MyoKardia acquisition. Charges of approximately $150 million are expected to be incurred through 2022, and consist of integration planning and execution expenses, employee termination benefit costs and other costs. Cumulative charges of approximately $95 million have been recognized for these actions.

Company Transformation

In 2016, a restructuring plan was announced to evolve and streamline BMS’s operating model. Cumulative charges of approximately $1.5 billion were recognized for these actions since the announcement. Actions under the plan were completed as of December 31, 2020.

The following provides the charges related to restructuring initiatives by type of cost:


	Three Months Ended June 30,				Six Months Ended June 30,
Dollars in Millions	2021		2020		2021		2020
Celgene Acquisition Plan	$	200	$	317	$	373	$	641
MyoKardia Acquisition Plan	19		—		56		—
Company Transformation	—		23		—		105
Total charges	$	219	$	340	$	429	$	746

Employee termination costs	$	75	$	107	$	119	$	256
Other termination costs	3		8		4		19
Provision for restructuring	78		115		123		275
Integration expenses	152		166		293		340
Accelerated depreciation	—		11		—		41
Asset impairments	—		39		24		81
Other shutdown costs, net	(11)		9		(11)		9
Total charges	$	219	$	340	$	429	$	746

Cost of products sold	$	—	$	11	$	24	$	27
Marketing, selling and administrative	—		1		—		1
Research and development	—		39		—		95
Other (income)/expense, net	219		289		405		623
Total charges	$	219	$	340	$	429	$	746

The following summarizes the charges and spending related to restructuring plan activities:


	Six Months Ended June 30,
Dollars in Millions	2021		2020
Liability at December 31	$	148	$	100
Provision for restructuring(a)	114		228
Foreign currency translation and other	(2)		1
Payments	(134)		(188)
Liability at June 30	$	126	$	141

(a) Includes a reduction of the liability resulting from changes in estimates of $8 million and $6 million for the six months ended June 30, 2021 and 2020, respectively. Excludes $9 million and $47 million for the six months ended June 30, 2021 and 2020, respectively, of accelerated stock-based compensation relating to the Celgene Acquisition Plan.