RESTRUCTURING

6 Months Ended

Jun. 30, 2022

Restructuring Charges [Abstract]

Restructuring

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 that are currently expected to be approximately $3.0 billion. The synergies are expected to be realized in Cost of products sold (5%), Marketing, selling and administrative expenses (65%) and Research and development expenses (30%). Charges of approximately $3.3 billion are expected to be incurred. The majority of the charges are expected to be incurred through 2022. Cumulative charges of approximately $2.9 billion have been recognized to date 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 $3.0 billion. Employee workforce reductions were approximately 140 and 240 for the six months ended June 30, 2022 and 2021, 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 $122 million have been recognized for these actions to date.

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	2022		2021		2022		2021
Celgene Acquisition Plan	$	146	$	200	$	273	$	373
MyoKardia Acquisition Plan	2		19		5		56
Total charges	$	148	$	219	$	278	$	429
Employee termination costs	$	19	$	75	$	41	$	119
Other termination costs	1		3		2		4
Provision for restructuring	20		78		43		123
Integration expenses	124		152		229		293
Accelerated depreciation	4		—		6		—
Asset impairments	—		—		—		24
Other shutdown costs, net	—		(11)		—		(11)
Total charges	$	148	$	219	$	278	$	429
Cost of products sold	$	—	$	—	$	—	$	24
Marketing, selling and administrative	4		—		6		—
Other (income)/expense, net	144		219		272		405
Total charges	$	148	$	219	$	278	$	429

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

	Six Months Ended June 30,
Dollars in Millions	2022		2021
Liability at December 31	$	101	$	148
Provision for restructuring(a)	43		114
Foreign currency translation and other	(6)		(2)
Payments	(67)		(134)
Liability at June 30	$	71	$	126

(a)    Includes a reduction of the liability resulting from changes in estimates of $8 million for both the six months ended June 30, 2022 and 2021. Excludes $9 million for the six months ended June 30, 2021 of accelerated stock-based compensation relating to the Celgene Acquisition Plan.