UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

___________________________

FORM 10-Q

___________________________

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2021

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______ to _______

Commission File Number 001-01136

___________________________

BRISTOL-MYERS SQUIBB COMPANY

(Exact name of registrant as specified in its charter)

___________________________

Delaware	22-0790350
(State or other jurisdiction of incorporation or organization)	(I.R.S Employer Identification No.)

430 E. 29th Street, 14FL, New York, NY 10016

(Address of principal executive offices) (Zip Code)

(212) 546-4000

(Registrant’s telephone number, including area code)

___________________________

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.10 Par Value	BMY	New York Stock Exchange
1.000% Notes due 2025	BMY25	New York Stock Exchange
1.750% Notes due 2035	BMY35	New York Stock Exchange
Celgene Contingent Value Rights	CELG RT	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to the filing requirements for the past 90 days.    Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer  ☒ Accelerated filer  ☐ Non-accelerated filer  ☐ Smaller reporting company  ☐ Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes  ☐   No  ☒

APPLICABLE ONLY TO CORPORATE ISSUERS:

At June 30, 2021, there were 2,222,113,553 shares outstanding of the Registrant’s $0.10 par value common stock.

BRISTOL-MYERS SQUIBB COMPANY

INDEX TO FORM 10-Q

June 30, 2021

PART I—FINANCIAL INFORMATION
Item 1.
Financial Statements:
Consolidated Statements of Earnings and Comprehensive Income/(Loss)	3
Consolidated Balance Sheets	4
Consolidated Statements of Cash Flows	5
Notes to Consolidated Financial Statements	6
Item 2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations	30
Item 3.
Quantitative and Qualitative Disclosure About Market Risk	52
Item 4.
Controls and Procedures	52
PART II—OTHER INFORMATION
Item 1.
Legal Proceedings	53
Item 1A.
Risk Factors	53
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds	53
Item 6.
Exhibits	54
Summary of Abbreviated Terms	55
Signatures	56

*    Indicates brand names of products which are trademarks not owned by BMS. Specific trademark ownership information is included in the Exhibit Index at the end of this Quarterly Report on Form 10-Q.

PART I—FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS

BRISTOL-MYERS SQUIBB COMPANY

CONSOLIDATED STATEMENTS OF EARNINGS

Dollars in Millions, Except Per Share Data

(UNAUDITED)

	Three Months Ended June 30,				Six Months Ended June 30,
EARNINGS	2021		2020		2021		2020
Net product sales	$	11,405	$	9,817	$	22,203	$	20,358
Alliance and other revenues	298		312		573		552
Total Revenues	11,703		10,129		22,776		20,910
Cost of products sold(a)	2,452		2,699		5,293		6,361
Marketing, selling and administrative	1,882		1,628		3,548		3,234
Research and development	3,271		2,522		5,496		4,894
Amortization of acquired intangible assets	2,547		2,389		5,060		4,671
Other (income)/expense, net	(2)		(736)		(704)		427
Total Expenses	10,150		8,502		18,693		19,587
Earnings Before Income Taxes	1,553		1,627		4,083		1,323
Provision for Income Taxes	492		1,707		993		2,169
Net Earnings/(Loss)	1,061		(80)		3,090		(846)
Noncontrolling Interest	6		5		14		14
Net Earnings/(Loss) Attributable to BMS	$	1,055	$	(85)	$	3,076	$	(860)
Earnings/(Loss) per Common Share
Basic	$	0.47	$	(0.04)	$	1.38	$	(0.38)
Diluted	0.47		(0.04)		1.36		(0.38)

(a)    Excludes amortization of acquired intangible assets.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)

Dollars in Millions

(UNAUDITED)

	Three Months Ended June 30,				Six Months Ended June 30,
COMPREHENSIVE INCOME/(LOSS)	2021		2020		2021		2020
Net Earnings/(Loss)	$	1,061	$	(80)	$	3,090	$	(846)
Other Comprehensive Income/(Loss), net of taxes and reclassifications to earnings:
Derivatives qualifying as cash flow hedges	6		(59)		286		11
Pension and postretirement benefits	15		(7)		38		9
Available-for-sale debt securities	(2)		8		(4)		9
Foreign currency translation	7		51		1		(65)
Total Other Comprehensive Income/(Loss)	26		(7)		321		(36)
Comprehensive Income/(Loss)	1,087		(87)		3,411		(882)
Comprehensive Income Attributable to Noncontrolling Interest	6		5		14		14
Comprehensive Income/(Loss) Attributable to BMS	$	1,081	$	(92)	$	3,397	$	(896)

The accompanying notes are an integral part of these consolidated financial statements.

3

BRISTOL-MYERS SQUIBB COMPANY

CONSOLIDATED BALANCE SHEETS

Dollars in Millions

(UNAUDITED)

ASSETS	June 30, 2021		December 31, 2020
Current Assets:
Cash and cash equivalents	$	11,024	$	14,546
Marketable debt securities	1,946		1,285
Receivables	9,017		8,501
Inventories	2,137		2,074
Other current assets	5,037		3,786
Total Current Assets	29,161		30,192
Property, plant and equipment	5,795		5,886
Goodwill	20,529		20,547
Other intangible assets	48,065		53,243
Deferred income taxes	650		1,161
Marketable debt securities	143		433
Other non-current assets	6,454		7,019
Total Assets	$	110,797	$	118,481
LIABILITIES
Current Liabilities:
Short-term debt obligations	$	2,655	$	2,340
Accounts payable	3,609		2,713
Other current liabilities	12,727		14,027
Total Current Liabilities	18,991		19,080
Deferred income taxes	4,931		5,407
Long-term debt	42,503		48,336
Other non-current liabilities	7,498		7,776
Total Liabilities	73,923		80,599
Commitments and contingencies
EQUITY
Bristol-Myers Squibb Company Shareholders’ Equity:
Preferred stock	—		—
Common stock	292		292
Capital in excess of par value of stock	44,064		44,325
Accumulated other comprehensive loss	(1,518)		(1,839)
Retained earnings	22,168		21,281
Less cost of treasury stock	(28,198)		(26,237)
Total Bristol-Myers Squibb Company Shareholders’ Equity	36,808		37,822
Noncontrolling interest	66		60
Total Equity	36,874		37,882
Total Liabilities and Equity	$	110,797	$	118,481

The accompanying notes are an integral part of these consolidated financial statements.

4

BRISTOL-MYERS SQUIBB COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS

Dollars in Millions

(UNAUDITED)

	Six Months Ended June 30,
	2021		2020
Cash Flows From Operating Activities:
Net earnings/(loss)	$	3,090	$	(846)
Adjustments to reconcile net earnings/(loss) to net cash provided by operating activities:
Depreciation and amortization, net	5,380		5,035
Deferred income taxes	(95)		1,365
Stock-based compensation	308		423
Impairment charges	579		116
Pension settlements and amortization	25		22
Divestiture gains and royalties	(302)		(295)
Asset acquisition charges	801		361
Equity investment gains	(749)		(480)
Contingent consideration fair value adjustments	(510)		391
Other adjustments	204		(91)
Changes in operating assets and liabilities:
Receivables	(626)		(197)
Inventories	111		2,090
Accounts payable	158		480
Income taxes payable	(795)		185
Other	(695)		(129)
Net Cash Provided by Operating Activities	6,884		8,430
Cash Flows From Investing Activities:
Sale and maturities of marketable debt securities	1,968		3,537
Purchase of marketable debt securities	(2,343)		(1,957)
Proceeds from sales of equity investment securities	814		12
Capital expenditures	(383)		(317)
Divestiture and other proceeds	382		336
Acquisition and other payments, net of cash acquired	(401)		(445)
Net Cash Provided by Investing Activities	37		1,166
Cash Flows From Financing Activities:
Short-term debt obligations, net	(185)		(22)
Repayment of long-term debt	(5,522)		—
Repurchase of common stock	(3,011)		(81)
Dividends	(2,207)		(2,038)
Other	448		94
Net Cash Used in Financing Activities	(10,477)		(2,047)
Effect of Exchange Rates on Cash, Cash Equivalents and Restricted Cash	(20)		(7)
(Decrease)/Increase in Cash, Cash Equivalents and Restricted Cash	(3,576)		7,542
Cash, Cash Equivalents and Restricted Cash at Beginning of Period	14,973		12,820
Cash, Cash Equivalents and Restricted Cash at End of Period	$	11,397	$	20,362

The accompanying notes are an integral part of these consolidated financial statements.

5

Note 1. BASIS OF PRESENTATION AND RECENTLY ISSUED ACCOUNTING STANDARDS

Basis of Consolidation

Bristol-Myers Squibb Company (“BMS”) prepared these unaudited consolidated financial statements following the requirements of the SEC and U.S. GAAP for interim reporting. Under those rules, certain footnotes and other financial information that are normally required for annual financial statements can be condensed or omitted. The Company is responsible for the consolidated financial statements included in this Quarterly Report on Form 10-Q, which include all adjustments necessary for a fair presentation of the financial position at June 30, 2021 and December 31, 2020, the results of operations for the three and six months ended June 30, 2021 and 2020, and cash flows for the six months ended June 30, 2021 and 2020. All intercompany balances and transactions have been eliminated. These financial statements and the related notes should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2020 included in the 2020 Form 10-K. Refer to the Summary of Abbreviated Terms at the end of this Quarterly Report on Form 10-Q for terms used throughout the document.

Business Segment Information

BMS operates in a single segment engaged in the discovery, development, licensing, manufacturing, marketing, distribution and sale of innovative medicines that help patients prevail over serious diseases. A global research and development organization and supply chain organization are responsible for the discovery, development, manufacturing and supply of products. Regional commercial organizations market, distribute and sell the products. The business is also supported by global corporate staff functions. Consistent with BMS’s operational structure, the Chief Executive Officer (“CEO”), as the chief operating decision maker, manages and allocates resources at the global corporate level. Managing and allocating resources at the global corporate level enables the CEO to assess both the overall level of resources available and how to best deploy these resources across functions, therapeutic areas, regional commercial organizations and research and development projects in line with our overarching long-term corporate-wide strategic goals, rather than on a product or franchise basis. The determination of a single segment is consistent with the financial information regularly reviewed by the CEO for purposes of evaluating performance, allocating resources, setting incentive compensation targets, and planning and forecasting future periods. For further information on product and regional revenue, see “—Note 2. Revenue.”

Use of Estimates and Judgments

Revenues, expenses, assets and liabilities can vary during each quarter of the year. Accordingly, the results and trends in these unaudited consolidated financial statements may not be indicative of full year operating results. The preparation of financial statements requires the use of management estimates, judgments and assumptions. The most significant assumptions are estimates used in determining accounting for business combinations; impairments of intangible assets; sales rebate and return accruals; legal contingencies; and income taxes. Actual results may differ from estimates.

Reclassifications

Certain reclassifications were made to conform the prior period consolidated financial statements to the current period presentation. Cash payments resulting from licensing arrangements, including upfront and contingent milestones previously included in operating activities in the consolidated statements of cash flows are now presented in investing activities. The adjustment resulted in an increase to net cash provided by operating activities and net cash used in investing activities of $267 million in the six months ended June 30, 2020. Proceeds received from the sale of equity investment securities previously presented in Divestiture and other proceeds in the consolidated statements of cash flows is now presented separately in Proceeds from sales of equity investment securities. These reclassifications did not have an impact on net assets or net earnings.

Recently Adopted Accounting Standards

In December 2019, the FASB issued amended guidance on the accounting and reporting of income taxes. The guidance is intended to simplify the accounting for income taxes by removing exceptions related to certain intraperiod tax allocations and deferred tax liabilities; clarifying guidance primarily related to evaluating the step-up tax basis for goodwill in a business combination; and reflecting enacted changes in tax laws or rates in the annual effective tax rate. BMS adopted the new guidance effective January 1, 2021. The amended guidance did not have a material impact on BMS’s results of operations.

6

Note 2. REVENUE

The following table summarizes the disaggregation of revenue by nature:

	Three Months Ended June 30,				Six Months Ended June 30,
Dollars in Millions	2021		2020		2021		2020
Net product sales	$	11,405	$	9,817	$	22,203	$	20,358
Alliance revenues	159		163		301		268
Other revenues	139		149		272		284
Total Revenues	$	11,703	$	10,129	$	22,776	$	20,910

Products are sold principally to wholesalers, distributors, specialty pharmacies, and to a lesser extent, directly to retailers, hospitals, clinics and government agencies. Customer orders are generally fulfilled within a few days of receipt resulting in minimal order backlog. Contractual performance obligations are usually limited to transfer of control of the product to the customer. The transfer occurs either upon shipment, upon receipt of the product after considering when the customer obtains legal title to the product, or upon infusion for cell therapies and when BMS obtains a right of payment. At these points, customers are able to direct the use of and obtain substantially all of the remaining benefits of the product.

The following table summarizes GTN adjustments:

	Three Months Ended June 30,				Six Months Ended June 30,
Dollars in Millions	2021		2020		2021		2020
Gross product sales	$	16,782	$	13,788	$	32,341	$	28,474
GTN adjustments(a)
Charge-backs and cash discounts	(1,720)		(1,292)		(3,306)		(2,632)
Medicaid and Medicare rebates	(2,139)		(1,482)		(3,857)		(2,980)
Other rebates, returns, discounts and adjustments	(1,518)		(1,197)		(2,975)		(2,504)
Total GTN adjustments	(5,377)		(3,971)		(10,138)		(8,116)
Net product sales	$	11,405	$	9,817	$	22,203	$	20,358

(a)    Includes adjustments for provisions for product sales made in prior periods resulting from changes in estimates of $85 million and $302 million for the three and six months ended June 30, 2021, and $44 million and $116 million for the three and six months ended June 30, 2020, respectively.

7

The following table summarizes the disaggregation of revenue by product and region:

	Three Months Ended June 30,				Six Months Ended June 30,
Dollars in Millions	2021		2020		2021		2020
Prioritized Brands
Revlimid	$	3,202	$	2,884	$	6,146	$	5,799
Eliquis	2,792		2,163		5,678		4,804
Opdivo	1,910		1,653		3,630		3,419
Orencia	814		750		1,572		1,464
Pomalyst/Imnovid	854		745		1,627		1,458
Sprycel	541		511		1,011		1,032
Yervoy	510		369		966		765
Abraxane	296		308		610		608
Empliciti	86		97		171		194
Reblozyl	128		55		240		63
Inrebic	16		15		32		27
Onureg	12		—		27		—
Zeposia	28		1		46		1
Breyanzi	17		—		17		—
Abecma	24		—		24		—
Established Brands
Vidaza	45		126		99		284
Baraclude	109		121		222		243
Other Brands	319		331		658		749
Total Revenues	$	11,703	$	10,129	$	22,776	$	20,910
United States	$	7,388	$	6,487	$	14,398	$	13,253
Europe	2,689		2,136		5,242		4,703
Rest of the World	1,435		1,334		2,781		2,669
Other(a)	191		172		355		285
Total Revenues	$	11,703	$	10,129	$	22,776	$	20,910

(a)    Other revenues include royalties and alliance-related revenues for products not sold by BMS’s regional commercial organizations.

Revenue recognized from performance obligations satisfied in prior periods was $146 million and $430 million for the three and six months ended June 30, 2021 and $98 million and $228 million for the three and six months ended June 30, 2020, respectively, consisting primarily of revised estimates for GTN adjustments related to prior period sales and royalties for out-licensing arrangements. Contract assets were not material at June 30, 2021 and December 31, 2020.

Note 3. ALLIANCES

BMS enters into collaboration arrangements with third parties for the development and commercialization of certain products. Although each of these arrangements is unique in nature, both parties are active participants in the operating activities of the collaboration and exposed to significant risks and rewards depending on the commercial success of the activities. BMS may either in-license intellectual property owned by the other party or out-license its intellectual property to the other party. These arrangements also typically include research, development, manufacturing, and/or commercial activities and can cover a single investigational compound or commercial product or multiple compounds and/or products in various life cycle stages. The rights and obligations of the parties can be global or limited to geographic regions. BMS refers to these collaborations as alliances and its partners as alliance partners.

8

Selected financial information pertaining to alliances was as follows, including net product sales when BMS is the principal in the third-party customer sale for products subject to the alliance. Expenses summarized below do not include all amounts attributed to the activities for the products in the alliance, but only the payments between the alliance partners or the related amortization if the payments were deferred or capitalized.

	Three Months Ended June 30,				Six Months Ended June 30,
Dollars in Millions	2021		2020		2021		2020
Revenues from alliances:
Net product sales	$	2,805	$	2,201	$	5,687	$	4,924
Alliance revenues	159		163		301		268
Total Revenues	$	2,964	$	2,364	$	5,988	$	5,192
Payments to/(from) alliance partners:
Cost of products sold	$	1,346	$	1,050	$	2,743	$	2,356
Marketing, selling and administrative	(48)		(38)		(97)		(78)
Research and development	736		233		743		279
Other (income)/expense, net	(14)		(16)		(19)		(31)

Dollars in Millions	June 30, 2021		December 31, 2020
Selected Alliance Balance Sheet information:
Receivables – from alliance partners	$	349	$	343
Accounts payable – to alliance partners	2,032		1,093
Deferred income from alliances(a)	349		366

(a)    Includes unamortized upfront and milestone payments.

Specific information pertaining to significant alliances including their nature and purpose; the significant rights and obligations of the parties; and specific accounting policy elections are discussed in the 2020 Form 10-K.

Eisai

In the second quarter of 2021, BMS and Eisai commenced an exclusive global strategic collaboration for the co-development and co-commercialization of MORAb-202, a selective folate receptor alpha antibody-drug conjugate being investigated in endometrial, ovarian, lung and breast cancers. MORAb-202 is currently in Phase I/II clinical trials for solid tumors.

BMS and Eisai will jointly develop and commercialize MORAb-202 in the U.S., Canada, Europe, Russia, Japan, China and certain other countries in the Asia-Pacific region (the “collaboration territory”). Eisai will be responsible for the global manufacturing and supply. Profits, research and development and commercialization costs are shared in the collaboration territories. BMS will be responsible for development and commercialization outside of the collaboration territory and will pay a royalty on those sales.

A $650 million upfront collaboration fee was included in Research and development expense in the second quarter of 2021 and paid in the third quarter of 2021. BMS is also obligated to pay up to $2.5 billion upon the achievement of contingent development, regulatory and sales-based milestones.

Note 4. DIVESTITURES, LICENSING AND OTHER ARRANGEMENTS

Divestitures

The following table summarizes the financial impact of divestitures including royalties, which are included in Other (income)/expense, net. Revenue and pretax earnings related to all divestitures were not material in all periods presented (excluding divestiture gains or losses).

	Three Months Ended June 30,
	Net Proceeds(a)				Divestiture (Gains)/Losses				Royalty Income
Dollars in Millions	2021		2020		2021		2020		2021		2020
Diabetes Business	$	132	$	127	$	—	$	—	$	(152)	$	(129)
Erbitux* Business	6		3		—		—		—		—
Manufacturing Operations	23		10		—		—		—		—
Mature Brands and Other	41		1		(11)		9		—		(1)
Total	$	202	$	141	$	(11)	$	9	$	(152)	$	(130)

9

	Six Months Ended June 30,
	Net Proceeds(a)				Divestiture (Gains)/Losses				Royalty Income
Dollars in Millions	2021		2020		2021		2020		2021		2020
Diabetes Business	$	296	$	280	$	—	$	—	$	(286)	$	(256)
Erbitux* Business	6		7		—		—		—		—
Manufacturing Operations	23		10		—		(1)		—		—
Plavix* and Avapro*/Avalide*	5		7		—		(12)		—		—
Mature Brands and Other	52		32		(11)		6		(1)		(32)
Total	$	382	$	336	$	(11)	$	(7)	$	(287)	$	(288)

(a)    Includes royalties received subsequent to the related sale of the asset or business.

Licensing and Other Arrangements

The following table summarizes the financial impact of Keytruda* royalties, Tecentriq* royalties, up-front licensing fees and milestones for products that have not obtained commercial approval, which are included in Other (income)/expense, net.

	Three Months Ended June 30,				Six Months Ended June 30,
Dollars in Millions	2021		2020		2021		2020
Keytruda* royalties	$	(204)	$	(155)	$	(396)	$	(316)
Tecentriq* royalties	(23)		—		(45)		—
Up-front licensing fees	—		—		—		(30)
Contingent milestone income	(2)		(5)		(2)		(46)
Amortization of deferred income	(15)		(15)		(30)		(30)
Other royalties	(9)		(6)		(12)		(11)
Total	$	(253)	$	(181)	$	(485)	$	(433)

Agenus

In July 2021, BMS obtained a global exclusive license to Agenus’ proprietary AGEN1777 bispecific antibody program that blocks TIGIT and an additional target. AGEN1777 is being studied in oncology and is in preclinical development. BMS will be responsible for the development and any subsequent commercialization of AGEN1777 and its related products worldwide, including strategic decisions, regulatory responsibilities, funding and manufacturing. BMS paid a $200 million upfront licensing fee to Agenus and is obligated to pay up to $1.4 billion upon achievement of contingent development, regulatory and sales-based milestones as well as royalties on global net sales.

Note 5. OTHER (INCOME)/EXPENSE, NET

	Three Months Ended June 30,				Six Months Ended June 30,
Dollars in Millions	2021		2020		2021		2020
Interest expense	$	330	$	357	$	683	$	719
Contingent consideration	—		(165)		(510)		391
Royalties and licensing income	(405)		(311)		(772)		(721)
Equity investment gains	(148)		(818)		(749)		(480)
Integration expenses	152		166		293		340
Provision for restructuring	78		115		123		275
Litigation and other settlements	44		(1)		36		31
Transition and other service fees	(22)		(50)		(37)		(111)
Investment income	(12)		(25)		(21)		(86)
Reversion excise tax	—		—		—		76
Divestiture (gains)/losses	(11)		9		(11)		(7)
Intangible asset impairment	—		21		—		21
Loss on debt redemption	—		—		281		—
Other	(8)		(34)		(20)		(21)
Other (income)/expense, net	$	(2)	$	(736)	$	(704)	$	427

10

Note 6. 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	$