00000142722023Q1--12-31FALSEFALSE00000142722023-01-012023-03-310000014272bmy:CommonStock0.10ParValueMember2023-01-012023-03-310000014272bmy:A1.000Notesdue2025Member2023-01-012023-03-310000014272bmy:A1.750Notesdue2035Member2023-01-012023-03-310000014272bmy:CelgeneContingentValueRightsMember2023-01-012023-03-3100000142722023-04-20xbrli:shares0000014272bmy:NetProductSalesMember2023-01-012023-03-31iso4217:USD0000014272bmy:NetProductSalesMember2022-01-012022-03-310000014272bmy:AllianceandotherrevenuesMember2023-01-012023-03-310000014272bmy:AllianceandotherrevenuesMember2022-01-012022-03-3100000142722022-01-012022-03-31iso4217:USDxbrli:shares00000142722023-03-3100000142722022-12-3100000142722021-12-3100000142722022-03-310000014272bmy:AllianceRevenuesMember2023-01-012023-03-310000014272bmy:AllianceRevenuesMember2022-01-012022-03-310000014272bmy:OtherRevenuesMember2023-01-012023-03-310000014272bmy:OtherRevenuesMember2022-01-012022-03-310000014272bmy:SalesRevenueGrossMember2023-01-012023-03-310000014272bmy:SalesRevenueGrossMember2022-01-012022-03-310000014272bmy:ChargebacksandcashdiscountsMember2023-01-012023-03-310000014272bmy:ChargebacksandcashdiscountsMember2022-01-012022-03-310000014272bmy:MedicaidandMedicarerebatesMember2023-01-012023-03-310000014272bmy:MedicaidandMedicarerebatesMember2022-01-012022-03-310000014272bmy:OtherrebatesreturnsdiscountsandadjustmentsMember2023-01-012023-03-310000014272bmy:OtherrebatesreturnsdiscountsandadjustmentsMember2022-01-012022-03-310000014272bmy:EliquisMember2023-01-012023-03-310000014272bmy:EliquisMember2022-01-012022-03-310000014272bmy:OpdivoMember2023-01-012023-03-310000014272bmy:OpdivoMember2022-01-012022-03-310000014272bmy:PomalystImnovidMember2023-01-012023-03-310000014272bmy:PomalystImnovidMember2022-01-012022-03-310000014272bmy:OrenciaMember2023-01-012023-03-310000014272bmy:OrenciaMember2022-01-012022-03-310000014272bmy:SprycelMember2023-01-012023-03-310000014272bmy:SprycelMember2022-01-012022-03-310000014272bmy:YervoyMember2023-01-012023-03-310000014272bmy:YervoyMember2022-01-012022-03-310000014272bmy:MatureAndOtherBrandsMember2023-01-012023-03-310000014272bmy:MatureAndOtherBrandsMember2022-01-012022-03-310000014272bmy:InLineProductsMember2023-01-012023-03-310000014272bmy:InLineProductsMember2022-01-012022-03-310000014272bmy:ReblozylMember2023-01-012023-03-310000014272bmy:ReblozylMember2022-01-012022-03-310000014272bmy:AbecmaMember2023-01-012023-03-310000014272bmy:AbecmaMember2022-01-012022-03-310000014272bmy:OpdualagMember2023-01-012023-03-310000014272bmy:OpdualagMember2022-01-012022-03-310000014272bmy:ZeposiaMember2023-01-012023-03-310000014272bmy:ZeposiaMember2022-01-012022-03-310000014272bmy:BreyanziMember2023-01-012023-03-310000014272bmy:BreyanziMember2022-01-012022-03-310000014272bmy:OnuregMember2023-01-012023-03-310000014272bmy:OnuregMember2022-01-012022-03-310000014272bmy:InrebicMember2023-01-012023-03-310000014272bmy:InrebicMember2022-01-012022-03-310000014272bmy:CamzyosMember2023-01-012023-03-310000014272bmy:CamzyosMember2022-01-012022-03-310000014272bmy:SotyktuMember2023-01-012023-03-310000014272bmy:SotyktuMember2022-01-012022-03-310000014272bmy:NewProductPortfolioMember2023-01-012023-03-310000014272bmy:NewProductPortfolioMember2022-01-012022-03-310000014272bmy:InLineProductsAndNewProductPortfolioMember2023-01-012023-03-310000014272bmy:InLineProductsAndNewProductPortfolioMember2022-01-012022-03-310000014272bmy:RevlimidMember2023-01-012023-03-310000014272bmy:RevlimidMember2022-01-012022-03-310000014272bmy:AbraxaneMember2023-01-012023-03-310000014272bmy:AbraxaneMember2022-01-012022-03-310000014272bmy:LOEProductsMember2023-01-012023-03-310000014272bmy:LOEProductsMember2022-01-012022-03-310000014272country:US2023-01-012023-03-310000014272country:US2022-01-012022-03-310000014272bmy:InternationalMember2023-01-012023-03-310000014272bmy:InternationalMember2022-01-012022-03-310000014272bmy:OtherRegionMember2023-01-012023-03-310000014272bmy:OtherRegionMember2022-01-012022-03-310000014272bmy:NetProductSalesMemberus-gaap:CollaborativeArrangementMember2023-01-012023-03-310000014272bmy:NetProductSalesMemberus-gaap:CollaborativeArrangementMember2022-01-012022-03-310000014272us-gaap:CollaborativeArrangementMember2023-01-012023-03-310000014272us-gaap:CollaborativeArrangementMember2022-01-012022-03-310000014272us-gaap:CollaborativeArrangementMember2023-03-310000014272us-gaap:CollaborativeArrangementMember2022-12-310000014272bmy:DiabetesBusinessMember2023-01-012023-03-310000014272bmy:DiabetesBusinessMember2022-01-012022-03-310000014272bmy:MatureBrandsAndOtherMember2023-01-012023-03-310000014272bmy:MatureBrandsAndOtherMember2022-01-012022-03-310000014272bmy:MatureBrandsAndOtherMemberbmy:CheplapharmMember2022-01-012022-03-310000014272bmy:KeytrudaRoyaltiesMember2023-01-012023-03-310000014272bmy:KeytrudaRoyaltiesMember2022-01-012022-03-310000014272bmy:TecentriqRoyaltiesMember2023-01-012023-03-310000014272bmy:TecentriqRoyaltiesMember2022-01-012022-03-310000014272bmy:OtherRoyaltiesMember2023-01-012023-03-310000014272bmy:OtherRoyaltiesMember2022-01-012022-03-310000014272bmy:ImmaticsMember2022-03-310000014272bmy:DragonflyMember2022-03-310000014272bmy:NimbusTherapueticsTYK2InhibitorMember2022-01-012022-12-310000014272bmy:NimbusTherapueticsTYK2InhibitorMemberbmy:NimbusTherapeuticsMember2022-12-31xbrli:pure0000014272bmy:NimbusTherapueticsTYK2InhibitorMemberbmy:NimbusTherapeuticsMember2023-02-280000014272bmy:NimbusTherapeuticsMember2023-02-280000014272bmy:NimbusTherapueticsTYK2InhibitorMember2023-02-012023-02-280000014272bmy:NimbusTherapueticsTYK2InhibitorMember2023-01-012023-03-310000014272bmy:CelgeneIntegrationMember2023-03-310000014272bmy:MyoKardiaAcquisitionPlanMember2023-03-310000014272bmy:MyoKardiaAcquisitionPlanMember2023-01-012023-03-310000014272bmy:CelgeneIntegrationMember2023-01-012023-03-310000014272bmy:CelgeneIntegrationMember2022-01-012022-03-310000014272bmy:MyoKardiaAcquisitionPlanMember2022-01-012022-03-310000014272us-gaap:CostOfSalesMember2023-01-012023-03-310000014272us-gaap:CostOfSalesMember2022-01-012022-03-310000014272us-gaap:SellingGeneralAndAdministrativeExpensesMember2023-01-012023-03-310000014272us-gaap:SellingGeneralAndAdministrativeExpensesMember2022-01-012022-03-310000014272us-gaap:OtherNonoperatingIncomeExpenseMember2023-01-012023-03-310000014272us-gaap:OtherNonoperatingIncomeExpenseMember2022-01-012022-03-310000014272srt:MinimumMember2023-03-310000014272srt:MaximumMember2023-03-310000014272us-gaap:FairValueInputsLevel1Member2023-03-310000014272us-gaap:FairValueInputsLevel2Member2023-03-310000014272us-gaap:FairValueInputsLevel3Member2023-03-310000014272us-gaap:FairValueInputsLevel1Member2022-12-310000014272us-gaap:FairValueInputsLevel2Member2022-12-310000014272us-gaap:FairValueInputsLevel3Member2022-12-310000014272us-gaap:CertificatesOfDepositMemberus-gaap:FairValueInputsLevel1Member2023-03-310000014272us-gaap:FairValueInputsLevel2Memberus-gaap:CertificatesOfDepositMember2023-03-310000014272us-gaap:CertificatesOfDepositMemberus-gaap:FairValueInputsLevel3Member2023-03-310000014272us-gaap:CertificatesOfDepositMemberus-gaap:FairValueInputsLevel1Member2022-12-310000014272us-gaap:FairValueInputsLevel2Memberus-gaap:CertificatesOfDepositMember2022-12-310000014272us-gaap:CertificatesOfDepositMemberus-gaap:FairValueInputsLevel3Member2022-12-310000014272us-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel1Member2023-03-310000014272us-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel2Member2023-03-310000014272us-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel3Member2023-03-310000014272us-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel1Member2022-12-310000014272us-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel2Member2022-12-310000014272us-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel3Member2022-12-310000014272us-gaap:OtherAssetsMemberus-gaap:FairValueInputsLevel1Member2023-03-310000014272us-gaap:OtherAssetsMemberus-gaap:FairValueInputsLevel2Member2023-03-310000014272us-gaap:OtherAssetsMemberus-gaap:FairValueInputsLevel3Member2023-03-310000014272us-gaap:OtherAssetsMemberus-gaap:FairValueInputsLevel1Member2022-12-310000014272us-gaap:OtherAssetsMemberus-gaap:FairValueInputsLevel2Member2022-12-310000014272us-gaap:OtherAssetsMemberus-gaap:FairValueInputsLevel3Member2022-12-310000014272us-gaap:FairValueInputsLevel1Memberbmy:ContingentValueRightsMember2023-03-310000014272us-gaap:FairValueInputsLevel2Memberbmy:ContingentValueRightsMember2023-03-310000014272us-gaap:FairValueInputsLevel3Memberbmy:ContingentValueRightsMember2023-03-310000014272us-gaap:FairValueInputsLevel1Memberbmy:ContingentValueRightsMember2022-12-310000014272us-gaap:FairValueInputsLevel2Memberbmy:ContingentValueRightsMember2022-12-310000014272us-gaap:FairValueInputsLevel3Memberbmy:ContingentValueRightsMember2022-12-310000014272us-gaap:CertificatesOfDepositMember2023-03-310000014272us-gaap:CertificatesOfDepositMember2022-12-310000014272us-gaap:CommercialPaperMember2023-03-310000014272us-gaap:CommercialPaperMember2022-12-310000014272us-gaap:ForeignExchangeContractMembercurrency:EURus-gaap:DesignatedAsHedgingInstrumentMember2023-03-310000014272us-gaap:ForeignExchangeContractMembercurrency:JPYus-gaap:DesignatedAsHedgingInstrumentMember2023-03-310000014272us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:CashFlowHedgingMembercurrency:EURus-gaap:DesignatedAsHedgingInstrumentMember2023-03-310000014272us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-03-310000014272currency:JPYus-gaap:CrossCurrencyInterestRateContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-03-310000014272us-gaap:CrossCurrencyInterestRateContractMembercurrency:EURus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:NetInvestmentHedgingMember2023-03-310000014272us-gaap:DesignatedAsHedgingInstrumentMember2023-03-31iso4217:EUR0000014272us-gaap:LondonInterbankOfferedRateLIBORMember2023-01-012023-03-310000014272us-gaap:AssetsMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeForwardMember2023-03-310000014272us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeForwardMember2023-03-310000014272us-gaap:LiabilityMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeForwardMember2023-03-310000014272us-gaap:AssetsMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeForwardMember2022-12-310000014272us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeForwardMember2022-12-310000014272us-gaap:LiabilityMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeForwardMember2022-12-310000014272us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:AssetsMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-03-310000014272us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-03-310000014272us-gaap:LiabilityMemberus-gaap:CrossCurrencyInterestRateContractMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-03-310000014272us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:AssetsMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-12-310000014272us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-12-310000014272us-gaap:LiabilityMemberus-gaap:CrossCurrencyInterestRateContractMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-12-310000014272us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:AssetsMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:NetInvestmentHedgingMember2023-03-310000014272us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:NetInvestmentHedgingMember2023-03-310000014272us-gaap:LiabilityMemberus-gaap:CrossCurrencyInterestRateContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:NetInvestmentHedgingMember2023-03-310000014272us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:AssetsMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:NetInvestmentHedgingMember2022-12-310000014272us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:NetInvestmentHedgingMember2022-12-310000014272us-gaap:LiabilityMemberus-gaap:CrossCurrencyInterestRateContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:NetInvestmentHedgingMember2022-12-310000014272us-gaap:InterestRateSwapMemberus-gaap:AssetsMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-03-310000014272us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-03-310000014272us-gaap:LiabilityMemberus-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-03-310000014272us-gaap:InterestRateSwapMemberus-gaap:AssetsMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-12-310000014272us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-12-310000014272us-gaap:LiabilityMemberus-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-12-310000014272us-gaap:NondesignatedMemberus-gaap:AssetsMemberus-gaap:ForeignExchangeForwardMember2023-03-310000014272us-gaap:NondesignatedMemberus-gaap:ForeignExchangeForwardMember2023-03-310000014272us-gaap:NondesignatedMemberus-gaap:LiabilityMemberus-gaap:ForeignExchangeForwardMember2023-03-310000014272us-gaap:NondesignatedMemberus-gaap:AssetsMemberus-gaap:ForeignExchangeForwardMember2022-12-310000014272us-gaap:NondesignatedMemberus-gaap:ForeignExchangeForwardMember2022-12-310000014272us-gaap:NondesignatedMemberus-gaap:LiabilityMemberus-gaap:ForeignExchangeForwardMember2022-12-310000014272us-gaap:NondesignatedMemberus-gaap:OtherContractMemberus-gaap:AssetsMember2023-03-310000014272us-gaap:NondesignatedMemberus-gaap:OtherContractMember2023-03-310000014272us-gaap:NondesignatedMemberus-gaap:LiabilityMemberus-gaap:OtherContractMember2023-03-310000014272us-gaap:NondesignatedMemberus-gaap:OtherContractMemberus-gaap:AssetsMember2022-12-310000014272us-gaap:NondesignatedMemberus-gaap:OtherContractMember2022-12-310000014272us-gaap:NondesignatedMemberus-gaap:LiabilityMemberus-gaap:OtherContractMember2022-12-310000014272us-gaap:CostOfSalesMemberus-gaap:ForeignExchangeForwardMember2023-01-012023-03-310000014272us-gaap:OtherIncomeMemberus-gaap:ForeignExchangeForwardMember2023-01-012023-03-310000014272us-gaap:CostOfSalesMemberus-gaap:ForeignExchangeForwardMember2022-01-012022-03-310000014272us-gaap:OtherIncomeMemberus-gaap:ForeignExchangeForwardMember2022-01-012022-03-310000014272us-gaap:CostOfSalesMemberus-gaap:CrossCurrencyInterestRateContractMember2023-01-012023-03-310000014272us-gaap:OtherIncomeMemberus-gaap:CrossCurrencyInterestRateContractMember2023-01-012023-03-310000014272us-gaap:CostOfSalesMemberus-gaap:CrossCurrencyInterestRateContractMember2022-01-012022-03-310000014272us-gaap:OtherIncomeMemberus-gaap:CrossCurrencyInterestRateContractMember2022-01-012022-03-310000014272us-gaap:CostOfSalesMemberus-gaap:InterestRateSwapMember2023-01-012023-03-310000014272us-gaap:InterestRateSwapMemberus-gaap:OtherIncomeMember2023-01-012023-03-310000014272us-gaap:CostOfSalesMemberus-gaap:InterestRateSwapMember2022-01-012022-03-310000014272us-gaap:InterestRateSwapMemberus-gaap:OtherIncomeMember2022-01-012022-03-310000014272us-gaap:ForeignExchangeForwardMember2023-01-012023-03-310000014272us-gaap:ForeignExchangeForwardMember2022-01-012022-03-310000014272us-gaap:CrossCurrencyInterestRateContractMember2023-01-012023-03-310000014272us-gaap:CrossCurrencyInterestRateContractMember2022-01-012022-03-310000014272us-gaap:InterestRateSwapMemberus-gaap:OtherOperatingIncomeExpenseMember2023-01-012023-03-310000014272us-gaap:InterestRateSwapMemberus-gaap:OtherOperatingIncomeExpenseMember2022-01-012022-03-310000014272us-gaap:DesignatedAsHedgingInstrumentMember2023-01-012023-03-310000014272us-gaap:DesignatedAsHedgingInstrumentMember2022-01-012022-03-310000014272us-gaap:InterestRateSwapMember2023-03-310000014272us-gaap:InterestRateSwapMember2022-12-310000014272bmy:A2750NotesMember2023-01-012023-03-310000014272bmy:A2750NotesMember2023-03-310000014272bmy:A3250NotesMember2023-01-012023-03-310000014272bmy:A3250NotesMember2023-03-310000014272bmy:A5BillionMaximumBorrowingCapacityMember2023-03-310000014272us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2022-12-310000014272us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2023-03-31bmy:customer0000014272us-gaap:CustomerConcentrationRiskMember2023-03-310000014272us-gaap:CustomerConcentrationRiskMember2022-12-310000014272bmy:InventoryPurchasePriceFairValueAdjustmentMember2023-03-310000014272bmy:InventoryPurchasePriceFairValueAdjustmentMember2022-12-310000014272us-gaap:LicensingAgreementsMembersrt:MinimumMember2023-01-012023-03-310000014272us-gaap:LicensingAgreementsMembersrt:MaximumMember2023-01-012023-03-310000014272us-gaap:LicensingAgreementsMember2023-03-310000014272us-gaap:LicensingAgreementsMember2022-12-310000014272srt:MinimumMemberus-gaap:TechnologyBasedIntangibleAssetsMember2023-01-012023-03-310000014272us-gaap:TechnologyBasedIntangibleAssetsMembersrt:MaximumMember2023-01-012023-03-310000014272us-gaap:TechnologyBasedIntangibleAssetsMember2023-03-310000014272us-gaap:TechnologyBasedIntangibleAssetsMember2022-12-310000014272srt:MinimumMemberus-gaap:ComputerSoftwareIntangibleAssetMember2023-01-012023-03-310000014272us-gaap:ComputerSoftwareIntangibleAssetMembersrt:MaximumMember2023-01-012023-03-310000014272us-gaap:ComputerSoftwareIntangibleAssetMember2023-03-310000014272us-gaap:ComputerSoftwareIntangibleAssetMember2022-12-310000014272us-gaap:InProcessResearchAndDevelopmentMember2023-03-310000014272us-gaap:InProcessResearchAndDevelopmentMember2022-12-310000014272us-gaap:CommonStockMember2022-12-310000014272us-gaap:AdditionalPaidInCapitalMember2022-12-310000014272us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310000014272us-gaap:RetainedEarningsMember2022-12-310000014272us-gaap:TreasuryStockCommonMember2022-12-310000014272us-gaap:NoncontrollingInterestMember2022-12-310000014272us-gaap:RetainedEarningsMember2023-01-012023-03-310000014272us-gaap:NoncontrollingInterestMember2023-01-012023-03-310000014272us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-03-310000014272us-gaap:TreasuryStockCommonMember2023-01-012023-03-310000014272us-gaap:AdditionalPaidInCapitalMember2023-01-012023-03-310000014272us-gaap:CommonStockMember2023-03-310000014272us-gaap:AdditionalPaidInCapitalMember2023-03-310000014272us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-310000014272us-gaap:RetainedEarningsMember2023-03-310000014272us-gaap:TreasuryStockCommonMember2023-03-310000014272us-gaap:NoncontrollingInterestMember2023-03-310000014272us-gaap:CommonStockMember2021-12-310000014272us-gaap:AdditionalPaidInCapitalMember2021-12-310000014272us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310000014272us-gaap:RetainedEarningsMember2021-12-310000014272us-gaap:TreasuryStockCommonMember2021-12-310000014272us-gaap:NoncontrollingInterestMember2021-12-310000014272us-gaap:RetainedEarningsMember2022-01-012022-03-310000014272us-gaap:NoncontrollingInterestMember2022-01-012022-03-310000014272us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310000014272us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310000014272us-gaap:TreasuryStockCommonMember2022-01-012022-03-310000014272us-gaap:CommonStockMember2022-03-310000014272us-gaap:AdditionalPaidInCapitalMember2022-03-310000014272us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310000014272us-gaap:RetainedEarningsMember2022-03-310000014272us-gaap:TreasuryStockCommonMember2022-03-310000014272us-gaap:NoncontrollingInterestMember2022-03-310000014272bmy:A2022ASRMember2022-03-310000014272bmy:A2022ASRMember2022-01-012022-03-310000014272us-gaap:ResearchAndDevelopmentExpenseMember2023-01-012023-03-310000014272us-gaap:ResearchAndDevelopmentExpenseMember2022-01-012022-03-310000014272us-gaap:RestrictedStockUnitsRSUMember2023-01-012023-03-310000014272bmy:MarketShareUnitsMember2023-01-012023-03-310000014272us-gaap:PerformanceSharesMember2023-01-012023-03-310000014272us-gaap:RestrictedStockUnitsRSUMember2023-03-310000014272bmy:MarketShareUnitsMember2023-03-310000014272us-gaap:PerformanceSharesMember2023-03-310000014272bmy:AntiPD1AntibodyLitigationMember2015-09-012015-09-30bmy:patent0000014272bmy:CARTKiteLitigationMember2019-12-012019-12-310000014272bmy:CARTKiteLitigationMember2019-12-310000014272bmy:CARTKiteLitigationMember2020-04-012020-04-300000014272bmy:CARTKiteLitigationMember2020-04-300000014272bmy:PlavixAustraliaIntellectualPropertyMembercurrency:AUD2010-03-012010-03-31iso4217:AUD0000014272currency:USDbmy:PlavixAustraliaIntellectualPropertyMember2010-03-012010-03-3100000142722021-02-012021-02-280000014272bmy:BristolMyersSquibbMember2021-02-012021-02-280000014272country:CAbmy:AbilifyProductLiabilityMember2023-03-31bmy:lawsuit0000014272bmy:OnglyzaProductLiabilityLitigationMember2022-03-3000000142722021-06-300000014272bmy:MolinaLitigationMember2022-06-30bmy:claim0000014272bmy:OptOutEntitiesMember2023-03-3100000142722022-04-01


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 March 31, 2023
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)
(212546-4200
(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 classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.10 Par ValueBMYNew York Stock Exchange
1.000% Notes due 2025BMY25New York Stock Exchange
1.750% Notes due 2035BMY35New York Stock Exchange
Celgene Contingent Value RightsCELG RTNew 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 April 20, 2023, there were 2,100,847,138 shares outstanding of the Registrant’s $0.10 par value common stock.





BRISTOL-MYERS SQUIBB COMPANY
INDEX TO FORM 10-Q
March 31, 2023
PART I—FINANCIAL INFORMATION
Item 1.
Item 2.
Item 3.
Item 4.
PART II—OTHER INFORMATION
Item 1.
Item 1A.
Item 2.
Item 6.
*    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 March 31,
EARNINGS20232022
Net product sales$11,048 $11,308 
Alliance and other revenues289 340 
Total Revenues11,337 11,648 
Cost of products sold(a)
2,566 2,471 
Marketing, selling and administrative1,762 1,831 
Research and development2,321 2,260 
Acquired IPRD75 333 
Amortization of acquired intangible assets2,256 2,417 
Other (income)/expense, net(413)649 
Total Expenses8,567 9,961 
Earnings before income taxes2,770 1,687 
Provision for income taxes503 404 
Net earnings2,267 1,283 
Noncontrolling interest5 5 
Net earnings attributable to BMS$2,262 $1,278 
Earnings per common share:
Basic$1.08 $0.60 
Diluted1.07 0.59 
(a)    Excludes amortization of acquired intangible assets.


CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Dollars in millions
(UNAUDITED)
 Three Months Ended March 31,
COMPREHENSIVE INCOME20232022
Net earnings$2,267 $1,283 
Other comprehensive income, net of taxes and reclassifications to earnings:
Derivatives qualifying as cash flow hedges(124)31 
Pension and postretirement benefits 21 
Marketable debt securities (1)
Foreign currency translation37 (12)
Total Other comprehensive (loss)/income(87)39 
Comprehensive income2,180 1,322 
Comprehensive income attributable to noncontrolling interest5 5 
Comprehensive income attributable to BMS$2,175 $1,317 
The accompanying notes are an integral part of these consolidated financial statements.

3


BRISTOL-MYERS SQUIBB COMPANY
CONSOLIDATED BALANCE SHEETS
Dollars in millions
(UNAUDITED)
 
ASSETSMarch 31,
2023
December 31,
2022
Current assets:
Cash and cash equivalents$8,995 $9,123 
Marketable debt securities274 130 
Receivables10,054 9,886 
Inventories2,605 2,339 
Other current assets5,158 5,795 
Total Current assets27,086 27,273 
Property, plant and equipment6,279 6,255 
Goodwill21,162 21,149 
Other intangible assets33,569 35,859 
Deferred income taxes1,317 1,344 
Other non-current assets4,868 4,940 
Total Assets$94,281 $96,820 
LIABILITIES
Current liabilities:
Short-term debt obligations$2,752 $4,264 
Accounts payable3,194 3,040 
Other current liabilities13,139 14,586 
Total Current liabilities19,085 21,890 
Deferred income taxes1,568 2,166 
Long-term debt35,078 35,056 
Other non-current liabilities6,664 6,590 
Total Liabilities62,395 65,702 
Commitments and Contingencies
EQUITY
BMS Shareholders’ equity:
Preferred stock  
Common stock292 292 
Capital in excess of par value of stock45,140 45,165 
Accumulated other comprehensive loss(1,368)(1,281)
Retained earnings26,568 25,503 
Less cost of treasury stock(38,808)(38,618)
Total BMS Shareholders’ equity31,824 31,061 
Noncontrolling interest62 57 
Total Equity31,886 31,118 
Total Liabilities and Equity$94,281 $96,820 
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)
 Three Months Ended March 31,
 20232022
Cash Flows From Operating Activities:
Net earnings$2,267 $1,283 
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization, net2,429 2,584 
Deferred income taxes(548)(687)
Stock-based compensation122 107 
Impairment charges20 41 
Divestiture gains and royalties(194)(387)
Acquired IPRD75 333 
Equity investment losses155 644 
Other adjustments4 256 
Changes in operating assets and liabilities:
Receivables(175)786 
Inventories(282)1 
Accounts payable187 23 
Rebates and discounts(910)(930)
Income taxes payable884 831 
Other(1,064)(1,073)
Net cash provided by operating activities2,970 3,812 
Cash Flows From Investing Activities:
Sale and maturities of marketable debt securities57 2,100 
Purchase of marketable debt securities(200)(1,714)
Proceeds from sales of equity investment securities62 2 
Capital expenditures(278)(253)
Divestiture and other proceeds227 402 
Acquisition and other payments, net of cash acquired(78)(442)
Net cash (used in)/provided by investing activities(210)95 
Cash Flows From Financing Activities:
Short-term debt obligations, net128 42 
Issuance of long-term debt 5,926 
Repayment of long-term debt(1,640)(5,769)
Repurchase of common stock(250)(5,000)
Dividends(1,196)(1,185)
Stock option proceeds and other, net(92)333 
Net cash used in financing activities(3,050)(5,653)
Effect of exchange rates on cash, cash equivalents and restricted cash13 9 
Decrease in cash, cash equivalents and restricted cash(277)(1,737)
Cash, cash equivalents and restricted cash at beginning of period9,325 14,316 
Cash, cash equivalents and restricted cash at end of period$9,048 $12,579 
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", "we", "our", "us" or "the Company") 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 of the Company as of March 31, 2023 and December 31, 2022, the results of operations and cash flows for the three months ended March 31, 2023 and 2022. All intercompany balances and transactions have been eliminated. These consolidated financial statements and the related footnotes should be read in conjunction with the audited consolidated financial statements of the Company for the year ended December 31, 2022 included in the 2022 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 acquisitions; impairments of intangible assets; charge-backs, cash discounts, sales rebates, returns and other adjustments; 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.

Recently Adopted Accounting Standards

Fair Value Measurements

In June 2022, the FASB issued amended guidance on measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security. The guidance clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The guidance also clarifies that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. The amendment requires the following disclosures for equity securities subject to contractual sale restrictions: the fair value of equity securities subject to contractual sale restrictions reflected in the balance sheet; the nature and remaining duration of the restriction(s); and the circumstances that could cause a lapse in the restriction(s). The amended guidance is effective January 1, 2024 on a prospective basis. Early adoption is permitted. The guidance was adopted on January 1, 2023 and the adoption did not have an impact on our consolidated financial statements.

6


Business Combinations

In October 2021, the FASB issued amended guidance on accounting for contract assets and contract liabilities from contracts with customers in a business combination. The guidance is intended to address inconsistency related to recognition of an acquired contract liability and payment terms and their effect on subsequent revenue recognized. At the acquisition date, an entity should account for the related revenue contracts in accordance with existing revenue recognition guidance generally by assessing how the acquiree applied recognition and measurement in their financial statements. The guidance was adopted on January 1, 2023 and the adoption did not have an impact on our consolidated financial statements.

Note 2. REVENUE

The following table summarizes the disaggregation of revenue by nature:
Three Months Ended March 31,
Dollars in millions20232022
Net product sales$11,048 $11,308 
Alliance revenues144 188 
Other revenues145 152 
Total Revenues$11,337 $11,648 

The following table summarizes GTN adjustments:
Three Months Ended March 31,
Dollars in millions20232022
Gross product sales$17,288 $16,650 
GTN adjustments (a)
Charge-backs and cash discounts(2,091)(1,763)
Medicaid and Medicare rebates(2,482)(2,084)
Other rebates, returns, discounts and adjustments(1,667)(1,495)
Total GTN adjustments(6,240)(5,342)
Net product sales$11,048 $11,308 
(a)    Includes adjustments for provisions for product sales made in prior periods resulting from changes in estimates of $87 million and $74 million for the three months ended March 31, 2023, and 2022, respectively.
7


The following table summarizes the disaggregation of revenue by product and region:
Three Months Ended March 31,
Dollars in millions20232022
In-Line Products
Eliquis$3,423 $3,211 
Opdivo2,202 1,923 
Pomalyst/Imnovid832 826 
Orencia764 792 
Sprycel429 483 
Yervoy508 515 
Mature and other products467 537 
Total In-Line Products 8,625 8,287 
New Product Portfolio
Reblozyl206 156 
Abecma147 67 
Opdualag117 6 
Zeposia78 36 
Breyanzi71 44 
Onureg34 23 
Inrebic25 18 
Camzyos29  
Sotyktu16  
Total New Product Portfolio723 350 
Total In-Line Products and New Product Portfolio9,348 8,637 
Recent LOE Products(a)
Revlimid1,750 2,797 
Abraxane239 214 
Total Recent LOE Products1,989 3,011 
Total revenues$11,337 $11,648 
United States$8,033 $7,694 
International3,149 3,727 
Other(b)
155 227 
Total revenues$11,337 $11,648 
(a)    Recent LOE Products include products with significant decline in revenue from the prior reporting period as a result of a loss of exclusivity.
(b)    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 $166 million and $147 million for the three months ended March 31, 2023 and 2022, respectively, consisting primarily of royalties for out-licensing arrangements and revised estimates for GTN adjustments related to prior period sales.

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 refers to these collaborations as alliances and its partners as alliance partners.

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.

8


Three Months Ended March 31,
Dollars in millions20232022
Revenues from alliances
Net product sales$3,532 $3,239 
Alliance revenues144 188 
Total alliance revenues$3,676 $3,427 
Payments to/(from) alliance partners
Cost of products sold$1,706 $1,556 
Marketing, selling and administrative(74)(54)
Research and development44 22 
Other (income)/expense, net(12)(12)

Dollars in millionsMarch 31,
2023
December 31,
2022
Selected alliance balance sheet information
Receivables – from alliance partners$274 $317 
Accounts payable – to alliance partners1,623 1,249 
Deferred income – from alliances(a)
314 289 
(a)
Includes unamortized upfront and milestone payments.

The nature, purpose, significant rights and obligations of the parties and specific accounting policy elections for each of the Company's significant alliances are discussed in the 2022 Form 10-K.

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 March 31,
Net ProceedsDivestiture (Gains)/LossesRoyalty Income
Dollars in millions202320222023202220232022
Diabetes business (a)
$216 $172 $ $ $(188)$(170)
Mature products and other4 225  (211) (1)
Total$220 $397 $ $(211)$(188)$(171)
(a)    Net proceeds for diabetes business relates to net proceeds from royalties received subsequent to the sale of the diabetes business.

Mature Products and Other

During the first quarter of 2022, product rights to several mature products were sold to Cheplapharm, resulting in cash proceeds of $221 million and a divestiture gain of $211 million.

9


Licensing and Other Arrangements

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

Three Months Ended March 31,
Dollars in millions20232022
Keytruda* royalties
$(279)$(221)
Tecentriq* royalties
(30)(25)
Contingent milestone income(31)(41)
Amortization of deferred income(12)(12)
Other royalties and licensing income (11)(7)
Total$(363)$(306)

Immatics

During the first quarter of 2022, BMS obtained a global exclusive license to Immatics' TCR bispecific IMA401 program. which is being studied in oncology. The trial commenced in May 2022. BMS and Immatics collaborate on the development and BMS will be responsible for the commercialization of IMA401 worldwide, including strategic decisions, regulatory responsibilities, funding and manufacturing. Immatics has the option to co-fund U.S. development in exchange for enhanced U.S. royalty payments and/or to co-promote IMA401 in the U.S. The transaction included an upfront payment of $150 million which was expensed to Acquired IPRD in the first quarter of 2022. Immatics is eligible to receive contingent development, regulatory and sales-based milestones of up to $770 million as well as royalties on global net sales.

Dragonfly

During the first quarter of 2022, a Phase I development milestone for interleukin-12 ("IL-12") was achieved resulting in a $175 million payment to Dragonfly and an Acquired IPRD charge. The parties also amended the terms of three future milestones by requiring the achievement of certain criteria by specified dates unless BMS notifies Dragonfly that it will discontinue development of IL-12.

During the first quarter of 2023, BMS notified Dragonfly that it was terminating the global exclusive license that relates to Dragonfly’s IL-12. All rights to IL-12 were reverted back to Dragonfly effective April 18, 2023.

Other

Nimbus Change of Control Income

During the first quarter of 2022, BMS and Nimbus Therapeutics entered into a settlement resolving all legal claims and business interests pertaining to Nimbus' TYK2 inhibitor resulting in $40 million of income included in Other (income)/expense. The settlement also provides for BMS to receive additional amounts for contingent development, regulatory approval and sales-based milestones and 10% of any change in control proceeds received by Nimbus Therapeutics related to its TYK2 inhibitor. In February 2023, Takeda acquired 100% ownership of Nimbus Therapeutics' TYK2 inhibitor for approximately $4.0 billion in upfront proceeds plus contingent sales-based milestones aggregating up to $2.0 billion. As a result, $400 million of income related to the change of control provision is included in Other (income)/expense during the first quarter of 2023 and is expected to be received in the second quarter of 2023.

10


Note 5. OTHER (INCOME)/EXPENSE, NET
Three Months Ended March 31,
Dollars in millions20232022
Interest expense (Note 10)$288 $326 
Royalty and licensing income (Note 4)(363)(306)
Royalty income - divestiture (Note 4)(188)(171)
Equity investment losses (Note 9)155 644 
Integration expenses (Note 6)67 105 
Loss on debt redemption (Note 10) 275 
Divestiture gains (Note 4) (211)
Litigation and other settlements (a)
(325)(37)
Investment income(102)(10)
Provision for restructuring (Note 6)67 23 
Other(12)11 
Other (income)/expense, net$(413)$649 
(a)    Includes $400 million of income recorded in connection with Nimbus' TYK2 program change of control provision for the three months ended March 31, 2023. Refer to "—Note 4. Divestitures, Licensing and Other Arrangements" for further information.

Note 6. RESTRUCTURING

Celgene Acquisition Plan

As part of the Celgene Acquisition Plan, the Company expects to incur charges of approximately $3.5 billion, including cash outlays of approximately $3.1 billion. Cumulative charges of approximately $3.1 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. The remaining charges are primarily related to IT system integration which are expected to be incurred through 2024.

Other Restructuring

Restructuring and integration plans were initiated to realize expected cost synergies resulting from cost savings and avoidance from the Turning Point acquisition in 2022 and the MyoKardia acquisition in 2020. Charges of approximately $250 million are expected to be incurred through the end of 2023 and consist of integration planning and execution expenses, employee termination benefit costs and other costs. Cumulative charges of approximately $180 million have been recognized for these actions to date. In the first quarter of 2023, certain restructuring activities occurred resulting in employee termination costs of $61 million, which are primarily attributed to changes in our operating model to accelerate the delivery of medicines to patients.

The following provides the charges related to restructuring initiatives by type of cost:
Three Months Ended March 31,
Dollars in millions20232022
Celgene Acquisition Plan$57 $127 
Other Restructuring 78 3 
Total charges$135 $130 
Employee termination costs$65 $22 
Other termination costs2 1 
Provision for restructuring67 23 
Integration expenses67 105 
Accelerated depreciation1 2 
Total charges$135 $130 
Cost of products sold$1 $ 
Marketing, selling and administrative 2 
Other (income)/expense, net134 128 
Total charges$135 $130 

11


The following summarizes the charges and spending related to restructuring plan activities:
Three Months Ended March 31,
Dollars in millions20232022
Beginning balance $47 $101 
Provision for restructuring(a)
67 23 
Foreign currency translation and other2 (1)
Payments(17)(21)
Ending balance$99 $102 
(a)    Includes a reduction of the liability resulting from changes in estimates of $3 million and $9 million for the three months ended March 31, 2023 and 2022, respectively.

Note 7. INCOME TAXES
Three Months Ended March 31,
Dollars in millions20232022
Earnings before income taxes$2,770 $1,687 
Provision for income taxes503 404 
Effective tax rate18.2 %23.9 %

Income taxes in interim periods are determined based on the estimated annual effective tax rates and the tax impact of discrete items that are reflected immediately. The 5.7% decrease in our effective tax rate is primarily due to jurisdictional earnings mix resulting from amortization of acquired intangible assets, equity investment losses, litigation and other settlements, as well as releases of income tax reserves of $89 million related to the resolution of Celgene's 2009-2011 IRS audits, partially offset by the impact of changes in our Puerto Rico tax decree that eliminated a previously creditable excise tax. Additional changes to the effective tax rate may occur in future periods due to various reasons, including changes to the estimated pretax earnings mix and tax reserves and revised interpretations or changes to the relevant tax code. Income tax payments were $149 million and $255 million for the three months ended March 31, 2023 and 2022, respectively.

BMS is currently under examination by a number of tax authorities that proposed or are considering proposing material adjustments to tax positions for issues such as transfer pricing, certain tax credits and the deductibility of certain expenses. As previously disclosed, BMS received several notices of proposed adjustments from the IRS related to transfer pricing and other tax issues for the 2008 to 2012 tax years. BMS disagrees with the IRS's positions and continues to work cooperatively with the IRS to resolve these issues. In the fourth quarter of 2022, BMS entered the IRS administrative appeals process to resolve these matters. Timing of the final resolution of these complex matters is uncertain and could have a material impact on BMS's consolidated financial statements.

It is reasonably possible that the amount of unrecognized tax benefits as of March 31, 2023 could decrease in the range of approximately $40 million to $60 million in the next twelve months as a result of the settlement of certain tax audits and other events. The expected change in unrecognized tax benefits may result in the payment of additional taxes, adjustment of certain deferred taxes and/or recognition of tax benefits.

It is reasonably possible that new issues will be raised by tax authorities that may increase unrecognized tax benefits, however, an estimate of such increases cannot reasonably be made at this time. BMS believes that it has adequately provided for all open tax years by jurisdiction.

Note 8. EARNINGS PER SHARE
Three Months Ended March 31,
Dollars in millions, except per share data20232022
Net earnings attributable to BMS $2,262 $1,278 
Weighted-average common shares outstanding – basic2,099 2,146 
Incremental shares attributable to share-based compensation plans14 18 
Weighted-average common shares outstanding – diluted2,113 2,164 
Earnings per common share
Basic$1.08 $0.60 
Diluted1.07 0.59 

12


The total number of potential shares of common stock excluded from the diluted earnings per common share computation because of the antidilutive impact was not material for the three months ended March 31, 2023 and 2022, respectively.

Note 9. FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS

Financial assets and liabilities measured at fair value on a recurring basis are summarized below:
March 31, 2023December 31, 2022
Dollars in millionsLevel 1Level 2Level 3Level 1Level 2Level 3
Cash and cash equivalents
Money market and other securities$ $7,737 $ $ $7,770 $ 
Marketable debt securities
Certificates of deposit 201   32  
Commercial paper 73   98  
Derivative assets 255   305  
Equity investments293 614  424 680  
Derivative liabilities 207   213  
Contingent consideration liability
Contingent value rights6   5   
Other acquisition related contingent consideration  18   24 

As further described in "Item 8. Financial Statements and Supplementary Data—Note 9. Financial Instruments and Fair Value Measurements" in the Company's 2022 Form 10-K, the Company's fair value estimates use inputs that are either (1) quoted prices for identical assets or liabilities in active markets (Level 1 inputs); (2) observable prices for similar assets or liabilities in active markets or for identical or similar assets or liabilities in markets that are not active (Level 2 inputs); or (3) unobservable inputs (Level 3 inputs). The fair value of equity investments is adjusted for characteristics specific to the security and is not adjusted for contractual sale restrictions. Equity investments subject to contractual sale restrictions were not material as of March 31, 2023 and December 31, 2022.

Marketable Debt Securities

The following table summarizes marketable debt securities:
March 31, 2023December 31, 2022
Dollars in millionsAmortized CostGross UnrealizedAmortized CostGross Unrealized
GainsLossesFair ValueGainsLossesFair Value
Certificates of deposit$201 $ $ $201 $32 $ $ $32 
Commercial paper73   73 98   98 
Total marketable debt securities(a)
$274 $ $ $274 $130 $ $ $130 
(a)    All marketable debt securities mature within one year as of March 31, 2023, and December 31, 2022.

13


Equity Investments

The following summarizes the carrying amount of equity investments:
Dollars in millionsMarch 31,
2023
December 31,
2022
Equity investments with readily determinable fair values$907 $1,104 
Equity investments without readily determinable fair values574 537 
Limited partnerships and other equity method investments524 546 
Total equity investments$2,005 $2,187 

The following summarizes the activity related to equity investments. Changes in fair value of equity investments are included in Other (income)/expense, net.
Three Months Ended March 31,
Dollars in millions20232022
Equity investments with readily determinable fair values
Net loss recognized$141 $598 
Net gain recognized on investments sold(1) 
Net unrealized loss recognized on investments still held140 598 
Equity investments without readily determinable fair values
Upward adjustments(5)(6)
Impairments and downward adjustments 2 
Equity in net loss of affiliates20 50 
Total Equity investment losses$155 $644 

Cumulative upwards adjustments and cumulative impairments and downward adjustments based on observable price changes in equity investments without readily determinable fair values still held as of March 31, 2023 were $186 million and $61 million, respectively.

Qualifying Hedges and Non-Qualifying Derivatives
Cash Flow Hedges

BMS enters into foreign currency forward and purchased local currency put option contracts (foreign exchange contracts) to hedge certain forecasted intercompany inventory sales and certain other foreign currency transactions. The objective of these foreign exchange contracts is to reduce variability caused by changes in foreign exchange rates that would affect the U.S. dollar value of future cash flows derived from foreign currency denominated sales, primarily the euro and Japanese yen. The fair values of these derivative contracts are recorded as either assets (gain positions) or liabilities (loss positions) in the consolidated balance sheet. Changes in fair value for these foreign exchange contracts, which are designated as cash flow hedges, is temporarily recorded in Accumulated other comprehensive loss ("AOCL") and reclassified to net earnings when the hedged item affects earnings (typically within the next 24 months). As of March 31, 2023, assuming market rates remain constant through contract maturities, we expect to reclassify pre-tax gains of $156 million into cost of products sold for our foreign exchange contracts out of AOCL during the next 12 months. The notional amount of outstanding foreign currency exchange contracts was primarily $4.9 billion for the euro contracts and $1.3 billion for Japanese yen contracts as of March 31, 2023.

14


BMS also enters into cross-currency swap contracts to hedge exposure to foreign currency exchange rate risk associated with its long-term debt denominated in euros. These contracts convert interest payments and principal repayment of the long-term debt to U.S. dollars from euros and are designated as cash flow hedges. The unrealized gains and losses on these contracts are reported in AOCL and reclassified to Other (income)/expense, net, in the same periods during which the hedged debt affects earnings. The notional amount of cross-currency swap contracts associated with long-term debt denominated in euros was $1.2 billion as of March 31, 2023.

Cash flow hedge accounting is discontinued when the forecasted transaction is no longer probable of occurring within 60 days after the originally forecasted date or when the hedge is no longer effective. Assessments to determine whether derivatives designated as qualifying hedges are highly effective in offsetting changes in the cash flows of hedged items are performed at inception and on a quarterly basis. The earnings impact related to discontinued cash flow hedges and hedge ineffectiveness was not material during all periods presented. Foreign currency exchange contracts not designated as a cash flow hedge offset exposures in certain foreign currency denominated assets, liabilities and earnings. Changes in the fair value of these derivatives are recognized in earnings as they occur.

Net Investment Hedges

Cross-currency swap contracts of $1.3 billion as of March 31, 2023 are designated to hedge currency exposure of BMS's net investment in its foreign subsidiaries. Contract fair value changes are recorded in the foreign currency translation component of AOCL with a related offset in derivative asset or liability on the consolidated balance sheet. The notional amount of outstanding cross-currency swap contracts was primarily attributed to the Japanese yen of $509 million and euro of $584 million as of March 31, 2023.

During the first quarter 2023, the Company de-designated its remaining net investment hedge in debt denominated in euros of €375 million. The related net investment hedge was entered into to hedge euro currency exposures of the net investment in certain foreign affiliates and was recognized in long-term debt. The effective portion of foreign exchange gain or loss on the remeasurement of debt denominated in euros was included in the foreign currency translation component of AOCL with the related offset in Long-term debt.

During the three months ended March 31, 2023, the amortization of gains related to the portion of our net investment hedges that was excluded from the assessment of effectiveness was not material.

Fair Value Hedges

Fixed to floating interest rate swap contracts are designated as fair value hedges and used as an interest rate risk management strategy to create an appropriate balance of fixed and floating rate debt. The contracts and underlying debt for the hedged benchmark risk are recorded at fair value. The effective interest rate for the contracts is one-month LIBOR (4.86% as of March 31, 2023) plus an interest rate spread of 4.6%. Gains or losses resulting from changes in fair value of the underlying debt attributable to the hedged benchmark interest rate risk are recorded in interest expense with an associated offset to the carrying value of debt. Since the specific terms and notional amount of the swap are intended to align with the debt being hedged, all changes in fair value of the swap are recorded in interest expense with an associated offset to the derivative asset or liability on the consolidated balance sheet. As a result, there was no net impact in earnings. If the underlying swap is terminated prior to maturity, then the fair value adjustment to the underlying debt is amortized as a reduction to interest expense over the remaining term of the debt.

Derivative cash flows, with the exception of net investment hedges, are principally classified in the operating section of the consolidated statements of cash flows, consistent with the underlying hedged item. Cash flows related to net investment hedges are classified in investing activities.

The following table summarizes the fair value and the notional values of outstanding derivatives:
15


 March 31, 2023December 31, 2022
Asset(a)
Liability(b)
Asset(a)
Liability(b)
Dollars in millionsNotionalFair ValueNotionalFair ValueNotionalFair ValueNotionalFair Value
Designated as cash flow hedges
Foreign currency exchange contracts
$5,289 $208 $2,036 $(81)$5,771 $271 $2,281 $(80)
Cross-currency swap contracts  1,210 (13)  584 (7)
Designated as net investment hedges
Cross-currency swap contracts165 1 1,182 (79)72 1 1,157 (78)
Designated as fair value hedges
Interest rate swap contracts  255 (14)  255 (18)
Not designated as hedges
Foreign currency exchange contracts2,101 37 1,467 (20)1,564 33 1,703 (19)
Total return swap contracts (c)
360 9     322 (11)
(a)    Included in Other current assets and Other non-current assets.
(b)    Included in Other current liabilities and Other non-current liabilities.
(c)    Total return swap contracts hedge changes in fair value of certain deferred compensation liabilities.

The following table summarizes the financial statement classification and amount of (gain)/loss recognized on hedges:
Three Months Ended March 31, 2023Three Months Ended March 31, 2022
Dollars in millionsCost of products soldOther (income)/expense, netCost of products soldOther (income)/expense, net
Foreign currency exchange contracts$(120)$(16)$(82)$(57)
Cross-currency swap contracts (23) (4)
Interest rate swap contracts (3) (11)

The following table summarizes the effect of derivative and non-derivative instruments designated as hedges in Other comprehensive income:
Three Months Ended March 31,
Dollars in millions20232022
Derivatives designated as cash flow hedges
Foreign exchange contracts gain/(loss):
Recognized in Other comprehensive income$(7)$120 
Reclassified to Cost of products sold(120)(82)
Cross-currency swap contracts gain/(loss):
Recognized in Other comprehensive income(6) 
Reclassified to Other (income)/expense, net(13) 
Forward starting interest rate swap contract loss:
Reclassified to Other (income)/expense, net (3)
Derivatives designated as net investment hedges
Cross-currency swap contracts gain/(loss):
Recognized in Other comprehensive income1 13 
Non-derivatives designated as net investment hedges
Non U.S. dollar borrowings gain/(loss):
Recognized in Other comprehensive income(10)15 

16


Note 10. FINANCING ARRANGEMENTS

Short-term debt obligations include:
Dollars in millionsMarch 31,
2023
December 31,
2022
Non-U.S. short-term borrowings$