EQUITY

3 Months Ended

Mar. 31, 2022

Equity [Abstract]

Equity

EQUITY

The following table summarizes changes in equity for the three months ended March 31, 2022:

	Common Stock			Capital in Excess of Par Value of Stock		Accumulated Other Comprehensive Loss		Retained Earnings		Treasury Stock			Noncontrolling Interest
Dollars and Shares in Millions	Shares	Par Value								Shares	Cost
Balance at December 31, 2021	2,923	$	292	$	44,361	$	(1,268)	$	23,820	747	$	(31,259)	$	60
Net Earnings	—	—		—		—		1,278		—	—		5
Other Comprehensive Income	—	—		—		39		—		—	—		—
Cash dividends declared(a)	—	—		—		—		(1,150)		—	—		—
Share repurchase program	—	—		(750)		—		—		65	(4,250)		—
Stock compensation	—	—		145		—		—		(18)	322		—
Balance at March 31, 2022	2,923	$	292	$	43,756	$	(1,229)	$	23,948	794	$	(35,187)	$	65

(a)    Cash dividends declared per common share were $0.54 for the three months ended March 31, 2022.

The following table summarizes changes in equity for the three months ended March 31, 2021:

	Common Stock			Capital in Excess of Par Value of Stock		Accumulated Other Comprehensive Loss		Retained Earnings		Treasury Stock			Noncontrolling Interest
Dollars and Shares in Millions	Shares	Par Value								Shares	Cost
Balance at December 31, 2020	2,923	$	292	$	44,325	$	(1,839)	$	21,281	679	$	(26,237)	$	60
Net Earnings	—	—		—		—		2,021		—	—		8
Other Comprehensive Income	—	—		—		295		—		—	—		—
Cash dividends declared(a)	—	—		—		—		(1,098)		—	—		—
Share repurchase program	—	—		—		—		—		28	(1,768)		—
Stock compensation	—	—		(473)		—		—		(15)	806		—
Balance at March 31, 2021	2,923	$	292	$	43,852	$	(1,544)	$	22,204	692	$	(27,199)	$	68

(a)    Cash dividends declared per common share were $0.49 for the three months ended March 31, 2021.

BMS has a share repurchase program, authorized by its Board of Directors, allowing for repurchases of its shares. The share repurchase program does not obligate us to repurchase any specific number of shares, does not have a specific expiration date and may be suspended or discontinued at any time. Treasury stock is recognized at the cost to reacquire the shares. Shares issued from treasury are recognized utilizing the first-in first-out method.

The outstanding share repurchase authorization under the program was approximately $15.2 billion as of December 31, 2021. In the three months ended March, 31, 2022, BMS executed accelerated share repurchase ("ASR") agreements to repurchase an aggregate $5.0 billion of common stock. These ASR agreements were funded with cash on-hand and are expected to settle during the second and third quarters of 2022. Approximately 65 million shares of common stock (85% of the $5.0 billion aggregate repurchase price) were received by BMS and included in treasury stock. The total number of shares to be repurchased under the ASR agreements will be based on volume-weighted average prices of BMS's common stock during the terms of the ASR transactions less a discount and subject to adjustments pursuant to the terms and conditions of the ASR agreements. The remaining share repurchase capacity under the share repurchase program was approximately $10.2 billion as of March 31, 2022.

BMS repurchased 28 million shares of its common stock for $1.8 billion in the three months ended March 31, 2021.

The components of Other Comprehensive Income were as follows:

	2022						2021
Dollars in Millions	Pretax		Tax		After Tax		Pretax		Tax		After Tax
Three Months Ended March 31,
Derivatives qualifying as cash flow hedges:
Unrealized gains/(losses)	$	120	$	(16)	$	104	$	259	$	(11)	$	248
Reclassified to net earnings(a)	(85)		12		(73)		36		(4)		32
Derivatives qualifying as cash flow hedges	35		(4)		31		295		(15)		280
Pension and postretirement benefits:
Actuarial losses	20		(4)		16		21		(5)		16
Amortization(b)	6		(2)		4		9		(3)		6
Settlements(b)	1		—		1		1		—		1
Pension and postretirement benefits	27		(6)		21		31		(8)		23
Marketable debt securities:
Unrealized (losses)/gains	(2)		1		(1)		(3)		1		(2)
Foreign currency translation	(6)		(6)		(12)		9		(15)		(6)
Other Comprehensive Income	$	54	$	(15)	$	39	$	332	$	(37)	$	295

(a)Included in Cost of products sold.

(b)Included in Other (income)/expense, net.

The accumulated balances related to each component of Other Comprehensive Income, net of taxes, were as follows:

Dollars in Millions	March 31, 2022		December 31, 2021
Derivatives qualifying as cash flow hedges	$	209	$	178
Pension and postretirement benefits	(747)		(768)
Marketable debt securities	1		2
Foreign currency translation	(692)		(680)
Accumulated other comprehensive loss	$	(1,229)	$	(1,268)