10-Q

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, 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.)

Route 206 & Province Line Road, Princeton, New Jersey 08543

(Address of principal executive offices) (Zip Code)

(609) 252-4621

(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 July 20, 2023, there were 2,089,102,921 shares outstanding of the Registrant’s $0.10 par value common stock.

BRISTOL-MYERS SQUIBB COMPANY

INDEX TO FORM 10-Q

June 30, 2023

PART I—FINANCIAL INFORMATION
Item 1.
Financial Statements:
Consolidated Statements of Earnings and Comprehensive Income	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	32
Item 3.
Quantitative and Qualitative Disclosure About Market Risk	49
Item 4.
Controls and Procedures	50
PART II—OTHER INFORMATION
Item 1.
Legal Proceedings	50
Item 1A.
Risk Factors	50
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds	50
Item 5.
Other Information	50
Item 6.
Exhibits	51
Summary of Abbreviated Terms	52
Signatures	53

*    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	2023		2022		2023		2022
Net product sales	$	10,917	$	11,485	$	21,965	$	22,793
Alliance and other revenues	309		402		598		742
Total Revenues	11,226		11,887		22,563		23,535
Cost of products sold(a)	2,876		2,720		5,442		5,191
Marketing, selling and administrative	1,934		1,787		3,696		3,618
Research and development	2,258		2,321		4,579		4,581
Acquired IPRD	158		400		233		733
Amortization of acquired intangible assets	2,257		2,417		4,513		4,834
Other (income)/expense, net	(116)		284		(529)		933
Total Expenses	9,367		9,929		17,934		19,890
Earnings before income taxes	1,859		1,958		4,629		3,645
Income tax (benefit)/provision	(218)		529		285		933
Net earnings	2,077		1,429		4,344		2,712
Noncontrolling interest	4		8		9		13
Net earnings attributable to BMS	$	2,073	$	1,421	$	4,335	$	2,699
Earnings per common share:
Basic	$	0.99	$	0.67	$	2.07	$	1.26
Diluted	0.99		0.66		2.06		1.25

(a)    Excludes amortization of acquired intangible assets.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Dollars in millions

(UNAUDITED)

	Three Months Ended June 30,				Six Months Ended June 30,
COMPREHENSIVE INCOME	2023		2022		2023		2022
Net earnings	$	2,077	$	1,429	$	4,344	$	2,712
Other comprehensive income, net of taxes and reclassifications to earnings:
Derivatives qualifying as cash flow hedges	3		301		(121)		332
Pension and postretirement benefits	(11)		25		(11)		46
Marketable debt securities	—		(1)		—		(2)
Foreign currency translation	(11)		(88)		26		(100)
Total Other comprehensive (loss)/income	(19)		237		(106)		276
Comprehensive income	2,058		1,666		4,238		2,988
Comprehensive income attributable to noncontrolling interest	4		8		9		13
Comprehensive income attributable to BMS	$	2,054	$	1,658	$	4,229	$	2,975

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

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BRISTOL-MYERS SQUIBB COMPANY

CONSOLIDATED BALANCE SHEETS

Dollars in millions

(UNAUDITED)

ASSETS	June 30, 2023		December 31, 2022
Current assets:
Cash and cash equivalents	$	8,372	$	9,123
Marketable debt securities	358		130
Receivables	10,112		9,886
Inventories	2,364		2,339
Other current assets	6,868		5,795
Total Current assets	28,074		27,273
Property, plant and equipment	6,355		6,255
Goodwill	21,163		21,149
Other intangible assets	31,303		35,859
Deferred income taxes	1,572		1,344
Other non-current assets	5,022		4,940
Total Assets	$	93,489	$	96,820
LIABILITIES
Current liabilities:
Short-term debt obligations	$	3,020	$	4,264
Accounts payable	3,069		3,040
Other current liabilities	14,061		14,586
Total Current liabilities	20,150		21,890
Deferred income taxes	751		2,166
Long-term debt	34,656		35,056
Other non-current liabilities	5,902		6,590
Total Liabilities	61,459		65,702
Commitments and Contingencies
EQUITY
BMS Shareholders’ equity:
Preferred stock	—		—
Common stock	292		292
Capital in excess of par value of stock	45,299		45,165
Accumulated other comprehensive loss	(1,387)		(1,281)
Retained earnings	27,449		25,503
Less cost of treasury stock	(39,680)		(38,618)
Total BMS Shareholders’ equity	31,973		31,061
Noncontrolling interest	57		57
Total Equity	32,030		31,118
Total Liabilities and Equity	$	93,489	$	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)

	Six Months Ended June 30,
	2023		2022
Cash Flows From Operating Activities:
Net earnings	$	4,344	$	2,712
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization, net	4,861		5,167
Deferred income taxes	(1,634)		(1,469)
Stock-based compensation	259		223
Impairment charges	67		83
Divestiture gains and royalties	(417)		(612)
Acquired IPRD	233		733
Equity investment losses	213		952
Other adjustments	(9)		219
Changes in operating assets and liabilities:
Receivables	(240)		117
Inventories	(298)		(12)
Accounts payable	22		4
Rebates and discounts	(418)		(410)
Income taxes payable	(1,235)		(370)
Other	(891)		(1,264)
Net cash provided by operating activities	4,857		6,073
Cash Flows From Investing Activities:
Sale and maturities of marketable debt securities	327		3,788
Purchase of marketable debt securities	(555)		(3,292)
Proceeds from sales of equity investment securities	67		150
Capital expenditures	(537)		(525)
Divestiture and other proceeds	421		594
Acquisition and other payments, net of cash acquired	(262)		(909)
Net cash used in investing activities	(539)		(194)
Cash Flows From Financing Activities:
Short-term debt obligations, net	243		130
Issuance of long-term debt	—		5,926
Repayment of long-term debt	(1,879)		(8,646)
Repurchase of common stock	(1,155)		(5,000)
Dividends	(2,393)		(2,335)
Stock option proceeds and other, net	(39)		752
Net cash used in financing activities	(5,223)		(9,173)
Effect of exchange rates on cash, cash equivalents and restricted cash	5		(62)
Decrease in cash, cash equivalents and restricted cash	(900)		(3,356)
Cash, cash equivalents and restricted cash at beginning of period	9,325		14,316
Cash, cash equivalents and restricted cash at end of period	$	8,425	$	10,960

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

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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 June 30, 2023 and December 31, 2022, the results of operations for the three and six months ended June 30, 2023 and 2022, and cash flows for the six months ended June 30, 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 June 30,				Six Months Ended June 30,
Dollars in millions	2023		2022		2023		2022
Net product sales	$	10,917	$	11,485	$	21,965	$	22,793
Alliance revenues	179		199		323		387
Other revenues	130		203		275		355
Total Revenues	$	11,226	$	11,887	$	22,563	$	23,535

The following table summarizes GTN adjustments:

	Three Months Ended June 30,				Six Months Ended June 30,
Dollars in millions	2023		2022		2023		2022
Gross product sales	$	18,111	$	17,299	$	35,399	$	33,949
GTN adjustments (a)
Charge-backs and cash discounts	(2,279)		(1,750)		(4,370)		(3,513)
Medicaid and Medicare rebates	(3,143)		(2,624)		(5,625)		(4,708)
Other rebates, returns, discounts and adjustments	(1,772)		(1,440)		(3,439)		(2,935)
Total GTN adjustments	(7,194)		(5,814)		(13,434)		(11,156)
Net product sales	$	10,917	$	11,485	$	21,965	$	22,793

(a)    Includes adjustments for provisions for product sales made in prior periods resulting from changes in estimates of $11 million and $98 million for the three and six months ended June 30, 2023 and $123 million and $197 million for the three and six months ended June 30, 2022, respectively.

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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	2023		2022		2023		2022
In-Line Products
Eliquis	$	3,204	$	3,235	6,627		6,446
Opdivo	2,145		2,063		4,347		3,986
Pomalyst/Imnovid	847		908		1,679		1,734
Orencia	927		876		1,691		1,668
Sprycel	458		544		887		1,027
Yervoy	585		525		1,093		1,040
Mature and other products	472		512		939		1,049
Total In-Line Products	8,638		8,663		17,263		16,950
New Product Portfolio
Reblozyl	234		172		440		328
Abecma	132		89		279		156
Opdualag	154		58		271		64
Zeposia	100		66		178		102
Breyanzi	100		39		171		83
Onureg	44		32		78		55
Inrebic	27		23		52		41
Camzyos	46		3		75		3
Sotyktu	25		—		41		—
Total New Product Portfolio	862		482		1,585		832
Total In-Line Products and New Product Portfolio	9,500		9,145		18,848		17,782
Recent LOE Products(a)
Revlimid	1,468		2,501		3,218		5,298
Abraxane	258		241		497		455
Total Recent LOE Products	1,726		2,742		3,715		5,753
Total revenues	$	11,226	$	11,887	$	22,563	$	23,535
United States	$	7,891	$	8,268	$	15,924	$	15,962
International	3,160		3,427		6,309		7,154
Other(b)	175		192		330		419
Total revenues	$	11,226	$	11,887	$	22,563	$	23,535

(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 $75 million and $241 million for the three and six months ended June 30, 2023 and $184 million and $331 million for the three and six months ended June 30, 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.

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	Three Months Ended June 30,				Six Months Ended June 30,
Dollars in millions	2023		2022		2023		2022
Revenues from alliances
Net product sales	$	3,320	$	3,273	6,852		$	6,512
Alliance revenues	179		199		323		387
Total alliance revenues	$	3,499	$	3,472	7,175		$	6,899
To/(from) alliance partners
Cost of products sold	$	1,614	$	1,572	$	3,320	$	3,128
Marketing, selling and administrative	(64)		(53)		(138)		(107)
Research and development	36		12		80		34
Acquired IPRD	55		100		55		100
Other (income)/expense, net	(15)		(11)		(27)		(23)

Dollars in millions	June 30, 2023		December 31, 2022
Selected alliance balance sheet information
Receivables – from alliance partners	$	287	$	317
Accounts payable – to alliance partners	1,613		1,249
Deferred income – from alliances(a)	300		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. Significant developments and updates related to alliances during the six months ended June 30, 2023 and 2022 are set forth below.

BridgeBio

During the second quarter of 2022, BMS and BridgeBio commenced a collaboration to develop and commercialize BBP-398, a SHP2 inhibitor, in oncology. The transaction included an upfront payment of $90 million expensed to Acquired IPRD during the second quarter of 2022. BridgeBio is eligible to receive contingent development, regulatory and sales-based milestones up to $815 million, as well as royalties on global net sales, excluding certain markets. BridgeBio is responsible for funding and completing ongoing BBP-398 Phase I monotherapy and combination therapy trials. BMS will lead and fund all other development and commercial activities. BridgeBio has an option to co-develop BBP-398 and receive higher royalties in the U.S.

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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				Divestiture (Gains)/Losses				Royalty Income
Dollars in millions	2023		2022		2023		2022		2023		2022
Diabetes business - royalties	$	185	$	185	$	—	$	—	$	(218)	$	(220)
Mature products and other	3		3		—		—		—		(1)
Total	$	188	$	188	$	—	$	—	$	(218)	$	(221)
	Six Months Ended June 30,
	Net Proceeds				Divestiture (Gains)/Losses				Royalty Income
Dollars in Millions	2023		2022		2023		2022		2023		2022
Diabetes business - royalties	$	401	$	357	$	—	$	—	$	(406)	$	(390)
Mature products and other (a)	7		228		—		(211)		—		(2)
Total	$	408	$	585	$	—	$	(211)	$	(406)	$	(392)

(a)    Includes cash proceeds of $221 million and a divestiture gain of $211 million related to the sale of several mature products to Cheplapharm in the first quarter of 2022.

Mature Products and Other

Manufacturing Operations

During the second quarter of 2022, BMS agreed to sell its manufacturing facility in Syracuse, New York to LOTTE Corporation and accounted for the business as held-for-sale resulting in a $63 million impairment charge recorded to Cost of products sold. Assets and liabilities reclassified to held-for-sale were included within Other current assets and Other current liabilities and were $172 million and $20 million, respectively, as of December 31, 2022. In January 2023, BMS completed the sale resulting in cash proceeds of $159 million, which was received in December 2022.

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 June 30,				Six Months Ended June 30,
Dollars in millions	2023		2022		2023		2022
Keytruda* royalties	$	(284)	$	(243)	$	(563)	$	(464)
Tecentriq* royalties	(24)		(19)		(54)		(44)
Contingent milestone income	(5)		(5)		(36)		(46)
Amortization of deferred income	(15)		(11)		(27)		(23)
Other royalties and licensing income	(12)		(9)		(23)		(16)
Total	$	(340)	$	(287)	$	(703)	$	(593)

Keytruda* Patent License Agreement

In 2017, BMS and Ono entered a global patent license agreement with Merck related to Merck's PD-1 antibody Keytruda*. In accordance with the agreement, Merck is obligated to pay ongoing royalties on global sales of Keytruda* of 6.5% from January 1, 2017 through December 31, 2023, and 2.5% from January 1, 2024 through December 31, 2026. The companies also granted certain rights to each other under their respective patent portfolios pertaining to PD-1. Payments and royalties are shared between BMS and Ono on a 75/25 percent allocation, respectively after adjusting for each party's legal fees.

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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. 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. During the first quarter of 2023, BMS notified Dragonfly of its termination of the global exclusive license related 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 ("Nimbus") 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 related to its TYK2 inhibitor. In February 2023, Takeda acquired 100% ownership of Nimbus' 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 was included in Other (income)/expense during the first quarter of 2023.

Royalty Extinguishment

During the second quarter of 2022, BMS amended the terms of a license arrangement and paid a third party $295 million, which was expensed to Acquired IPRD, to extinguish a future royalty obligation related to mavacamten prior to its FDA approval in April 2022.

Note 5. OTHER (INCOME)/EXPENSE, NET

	Three Months Ended June 30,				Six Months Ended June 30,
Dollars in millions	2023		2022		2023		2022
Interest expense (Note 10)	$	282	$	313	$	570	$	639
Royalty and licensing income (Note 4)	(340)		(287)		(703)		(593)
Royalty income - divestiture (Note 4)	(218)		(221)		(406)		(392)
Equity investment losses (Note 9)	58		308		213		952
Integration expenses (Note 6)	59		124		126		229
(Gain)/Loss on debt redemption (Note 10)	—		(9)		—		266
Divestiture gains (Note 4)	—		—		—		(211)
Litigation and other settlements (a)	(7)		25		(332)		(12)
Investment income	(95)		(27)		(197)		(37)
Provision for restructuring (Note 6)	113		20		180		43
Other	32		38		20		49
Other (income)/expense, net	$	(116)	$	284	$	(529)	$	933

(a)    Includes $400 million of income recorded in connection with Nimbus' TYK2 program change of control provision during the first quarter of 2023. Refer to "—Note 4. Divestitures, Licensing and Other Arrangements" for further information.

11

Note 6. RESTRUCTURING

2023 Restructuring Plan

In 2023, BMS commenced a restructuring plan to accelerate the delivery of medicines to patients by evolving and streamlining its enterprise operating model in key areas, such as R&D, manufacturing, commercial and other functions, to ensure its operating model supports and is appropriately aligned with the Company’s strategy to invest in key priorities. These changes primarily include (i) transforming R&D operations to accelerate pipeline delivery (ii) enhancing our commercial operating model, and (iii) establishing a more responsive manufacturing network and expansion of cell therapy manufacturing capabilities. Charges of approximately $1.0 billion are expected to be incurred through 2025, consisting primarily of employee termination costs and to a lesser extent site exit costs, including impairment and accelerated depreciation of property, plant and equipment.

Celgene and Other Acquisition Plans

Restructuring and integration plans were initiated to realize expected cost synergies resulting from cost savings and avoidance from the acquisition of Celgene (2019), MyoKardia (2020) and Turning Point (2022). As part of these plans, the Company expects to incur charges of approximately $3.8 billion. Cumulative charges of approximately $3.4 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 related to the acquisition of Celgene are primarily related to IT system integration which are expected to be incurred through 2024.

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	2023		2022		2023		2022
2023 Restructuring Plan	$	170	$	—	$	231	$	—
Celgene and Other Acquisition Plans	64		148		138		278
Total charges	$	234	$	148	$	369	$	278
Employee termination costs	$	109	$	19	$	174	$	41
Other termination costs	4		1		6		2
Provision for restructuring	113		20		180		43
Integration expenses	59		124		126		229
Accelerated depreciation	12		4		13		6
Asset impairments	50		—		50		—
Other shutdown costs	—		—		—		—
Total charges	$	234	$	148	$	369	$	278
Cost of products sold	$	36	$	—	$	37	$	—
Marketing, selling and administrative	20		4		20		6
Research and Development	6		—		6		—
Other (income)/expense, net	172		144		306		272
Total charges	$	234	$	148	$	369	$	278

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

	Six Months Ended June 30,
Dollars in millions	2023		2022
Beginning balance	$	47	$	101
Provision for restructuring(a)	180		43
Foreign currency translation and other	1		(6)
Payments	(48)		(67)
Ending balance	$	180	$	71

(a)    Includes a reduction of the liability resulting from changes in estimates of $4 million and $8 million for the six months ended June 30, 2023 and 2022, respectively.

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Note 7. INCOME TAXES

	Three Months Ended June 30,						Six Months Ended June 30,
Dollars in millions	2023			2022			2023			2022
Earnings before income taxes	$	1,859		$	1,958		$	4,629		$	3,645
Income tax (benefit)/provision	(218)			529			285			933
Effective tax rate	(11.7)		%	27.0		%	6.2		%	25.6		%

Provision for 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 effective tax rate during the three and six months ended June 30, 2023 was primarily impacted by a $656 million deferred income tax benefit following the receipt of a non-U.S. tax ruling regarding the deductibility of a statutory impairment of subsidiary investments. In addition, the effective tax rate during the six months of 2023 was impacted by 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 the 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 $3.1 billion and $2.7 billion for the six months ended June 30, 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 June 30, 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 June 30,				Six Months Ended June 30,
Dollars in millions, except per share data	2023		2022		2023		2022
Net earnings attributable to BMS	$	2,073	$	1,421	$	4,335	$	2,699
Weighted-average common shares outstanding – basic	2,093		2,133		2,096		2,140
Incremental shares attributable to share-based compensation plans	9		16		11		17
Weighted-average common shares outstanding – diluted	2,102		2,149		2,107		2,157
Earnings per common share
Basic	$	0.99	$	0.67	$	2.07	$	1.26
Diluted	$	0.99	0.66		$	2.06	1.25

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 and six months ended June 30, 2023 and 2022.

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Note 9. FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS

Financial assets and liabilities measured at fair value on a recurring basis are summarized below:

	June 30, 2023						December 31, 2022
Dollars in millions	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Cash and cash equivalents
Money market and other securities	$	—	$	6,644	$	—	$	—	$	7,770	$	—
Marketable debt securities
Certificates of deposit	—		358		—		—		32		—
Commercial paper	—		—		—		—		98		—
Derivative assets	—		357		—		—		305		—
Equity investments	336		512		—		424		680		—
Derivative liabilities	—		180		—		—		213		—
Contingent consideration liability
Contingent value rights	5		—		—		5		—		—
Other acquisition related contingent consideration	—		—		9		—		—		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 Level 2 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 December 31, 2022 and the restrictions expired in April 2023.

Marketable Debt Securities

The following table summarizes marketable debt securities:

	June 30, 2023								December 31, 2022
Dollars in millions	Amortized Cost		Gross Unrealized						Amortized Cost		Gross Unrealized
			Gains		Losses		Fair Value				Gains		Losses		Fair Value
Certificates of deposit	$	358	$	—	$	—	$	358	$	32	$	—	$	—	$	32
Commercial paper	—		—		—		—		98		—		—		98
Total marketable debt securities(a)	$	358	$	—	$	—	$	358	$	130	$	—	$	—	$	130

(a)    All marketable debt securities mature within one year as of June 30, 2023, and December 31, 2022.

14

Equity Investments

The following summarizes the carrying amount of equity investments:

Dollars in millions	June 30, 2023		December 31, 2022
Equity investments with readily determinable fair values	$	848	$	1,104
Equity investments without readily determinable fair values	623		537
Limited partnerships and other equity method investments	520		546
Total equity investments	$	1,991	$	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 June 30,		Six Months Ended June 30,
Dollars in millions	2023	2022	2023	2022
Equity investments with readily determinable fair values
Net loss recognized	47	254	188	852
Less: net gain recognized on investments sold	(11)	(16)	(12)	(16)
Net unrealized loss recognized on investments still held	58	270	200	868
Equity investments without readily determinable fair values
Upward adjustments	—	—	(6)	(6)
Impairments and downward adjustments	—	—	—	2
Equity in net loss of affiliates	11	54	31	104
Total equity investment losses	58	308	213	952

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 June 30, 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 sheets. Changes in fair value for these foreign exchange contracts, which are designated as cash flow hedges, are 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 June 30, 2023, assuming market rates remain constant through contract maturities, we expect to reclassify pre-tax gains of $111 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 $5.1 billion for the euro contracts and $1.2 billion for Japanese yen contracts as of June 30, 2023.

15

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 June 30, 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 $1.7 billion as of June 30, 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 in the consolidated balance sheets. The notional amount of outstanding cross-currency swap contracts was primarily attributed to the Japanese yen of $650 million and euro of $780 million as of June 30, 2023.

During the first quarter of 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 and six months ended June 30, 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. 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 in the consolidated balance sheets. 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.

16

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

	June 30, 2023								December 31, 2022
	Asset(a)				Liability(b)				Asset(a)				Liability(b)
Dollars in millions	Notional		Fair Value		Notional		Fair Value		Notional		Fair Value		Notional		Fair Value
Designated as cash flow hedges
Foreign currency exchange contracts	$	5,831	$	243	$	1,656	$	(79)	$	5,771	$	271	$	2,281	$	(80)
Cross-currency swap contracts	1,210		20		—		—		—		—		584		(7)
Designated as net investment hedges
Cross-currency swap contracts	561		13		1,167		(48)		72		1		1,157		(78)
Designated as fair value hedges
Interest rate swap contracts	—		—		3,755		(23)		—		—		255		(18)
Not designated as hedges
Foreign currency exchange contracts	2,370		66		2,334		(30)		1,564		33		1,703		(19)
Total return swap contracts (c)	374		15		—		—		—		—		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 June 30, 2023				Six Months Ended June 30, 2023
Dollars in millions	Cost of products sold		Other (income)/expense, net		Cost of products sold		Other (income)/expense, net
Foreign currency exchange contracts	$	(90)	$	(44)	$	(210)	$	(60)
Cross-currency swap contracts	—		(5)		—		(28)
Interest rate swap contracts	—		(4)		—		(7)
	Three Months Ended June 30, 2022				Six Months Ended June 30, 2022
Dollars in millions	Cost of products sold		Other (income)/expense, net		Cost of products sold		Other (income)/expense, net
Foreign currency exchange contracts	$	(131)	$	(18)	$	(213)	$	(75)
Cross-currency swap contracts	—		(4)		—		(8)
Interest rate swap contracts	—		(7)		—		(18)

The following table summarizes the effect of derivative and non-derivative instruments designated as hedges in Other comprehensive income:

	Three Months Ended June 30,				Six Months Ended June 30,
Dollars in millions	2023		2022		2023		2022
Derivatives designated as cash flow hedges
Foreign exchange contracts gain/(loss):
Recognized in Other comprehensive income	$	60	$	481	$	53	$	601
Reclassified to Cost of products sold	(90)		(131)		(210)		(213)
Cross-currency swap contracts gain/(loss):
Recognized in Other comprehensive income	34		—		28		—
Reclassified to Other (income)/expense, net	4		—		(9)		—
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 income	34		51		35		64
Non-derivatives designated as net investment hedges
Non U.S. dollar borrowings gain/(loss):
Recognized in Other comprehensive income	—		68		(10)		83

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Note 10. FINANCING ARRANGEMENTS

Short-term debt obligations include:

Dollars in millions	June 30, 2023		December 31, 2022
Non-U.S. short-term debt obligations	$	125	$	176
Current portion of Long-term debt	2,414		3,897
Other	481		191
Total	$	3,020	$	4,264

Long-term debt and the current portion of Long-term debt include:

Dollars in millions	June 30, 2023		December 31, 2022
Principal value	$	36,379	$	38,234
Adjustments to principal value:
Fair value of interest rate swap contracts	(23)		(18)
Unamortized basis adjustment from swap terminations	88		97
Unamortized bond discounts and issuance costs	(271)		(284)
Unamortized purchase price adjustments of Celgene debt	897		924
Total	$	37,070	$	38,953
Current portion of Long-term debt	$	2,414	$	3,897
Long-term debt	34,656		35,056
Total	$	37,070	$	38,953

The fair value of Long-term debt was $33.5 billion as of June 30, 2023 and $34.9 billion as of December 31, 2022 valued using Level 2 inputs, which are based upon the quoted market prices for the same or similar debt instruments. The fair value of Short-term debt obligations approximates the carrying value due to the short maturities of the debt instruments.

During the six months ended June 30, 2023, $1.9 billion of debt matured and was repaid including $750 million 2.750% Notes, $890 million 3.250% Notes and $239 million 7.150% Notes.

During the six months ended June 30, 2022, $2.0 billion of debt matured and was repaid including $1.5 billion 2.600% Notes and $500 million Floating Rate Notes.

During the six months ended June 30, 2022, BMS issued an aggregate principal amount of $6.0 billion of debt with net proceeds of $5.9 billion. The notes rank equally in right of payment with all of BMS's existing and future senior unsecured indebtedness and are redeemable at any time, in whole, or in part, at varying specified redemption prices plus accrued and unpaid interest. In addition, BMS purchased an aggregate principal amount of $6.0 billion of certain of its debt securities for $6.6 billion of cash in tender offers and "make-whole" redemptions. In connection with these transactions, a $266 million net loss on debt redemption was recognized based on the carrying value of the debt and included in Other (income)/expense, net.

Interest payments were $639 million and $720 million for the six months ended June 30, 2023 and 2022, respectively, net of amounts related to interest rate swap contracts.

Credit Facilities

As of June 30, 2023, BMS had a five-year $5.0 billion revolving credit facility expiring in January 2028, which is extendable annually by one year with the consent of the lenders. This facility provides for customary terms and conditions with no financial covenants and may be used to provide backup liquidity for our commercial paper borrowings. No borrowings were outstanding under the revolving credit facility as of June 30, 2023 and December 31, 2022.

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Note 11. RECEIVABLES

Dollars in millions	June 30, 2023		December 31, 2022
Trade receivables	$	8,827	$	8,848
Less: charge-backs and cash discounts	(676)		(675)
Less: allowance for expected credit loss	(26)		(22)
Net trade receivables	8,125		8,151
Alliance, royalties, VAT and other	1,987		1,735
Receivables	$	10,112	$	9,886

Non-U.S. receivables sold on a nonrecourse basis were $503 million and $674 million for the six months ended June 30, 2023 and 2022, respectively. Receivables from the three largest customers in the U.S. represented 70% and 66% of total trade receivables as of June 30, 2023 and December 31, 2022, respectively.

Note 12. INVENTORIES

Dollars in millions	June 30, 2023		December 31, 2022
Finished goods	$	594	$	509
Work in process	2,039		1,850
Raw and packaging materials	451		464
Total inventories	$	3,084	$	2,823
Inventories	$	2,364	$	2,339
Other non-current assets	720		484

The fair value adjustment related to the Celgene acquisition was $84 million as of December 31, 2022, which was fully amortized as of June 30, 2023.

Note 13. PROPERTY, PLANT AND EQUIPMENT

Dollars in millions	June 30, 2023		December 31, 2022
Land	$	162	$	162
Buildings	6,039		5,920
Machinery, equipment and fixtures	3,434		3,284
Construction in progress	1,197		1,053
Gross property, plant and equipment	10,832		10,419
Less accumulated depreciation	(4,477)		(4,164)
Property, plant and equipment	$	6,355	$	6,255

Depreciation expense was $151 million and $297 million for the three and six months ended June 30, 2023 and $141 million and $286 million for the three and six months ended June 30, 2022, respectively.

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Note 14. GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill

The changes in the carrying amounts in Goodwill were as follows:

Dollars in millions
Balance at December 31, 2022	$	21,149
Currency translation and other adjustments	14
Balance at June 30, 2023	$	21,163

Other Intangible Assets

Other intangible assets consisted of the following:

	Estimated Useful Lives	June 30, 2023						December 31, 2022
Dollars in Millions		Gross carrying amounts		Accumulated amortization		Other intangible assets, net		Gross carrying amounts		Accumulated amortization		Other intangible assets, net
Licenses	5 – 15 years	$	400	$	(144)	$	256	$	400	$	(128)	$	272
Acquired marketed product rights	3 – 15 years	59,577		(35,545)		24,032		60,477		(31,949)		28,528
Capitalized software	3 – 10 years	1,602		(1,127)		475		1,555		(1,056)		499
IPRD		6,540		—		6,540		6,560		—		6,560
Total		$	68,119	$	(36,816)	$	31,303	$	68,992	$	(33,133)	$	35,859

Amortization expense of Other intangible assets was $2.3 billion and $4.6 billion during the three and six months ended June 30, 2023 and $2.4 billion and $4.9 million for the three and six months ended June 30, 2022, respectively.

IPRD impairment charges were $20 million during the six months ended June 30, 2023 and $40 million during the six months ended June 30, 2022. These IPRD impairments were included in Research and development expense and represented full write-downs.

Note 15. SUPPLEMENTAL FINANCIAL INFORMATION

Dollars in millions	June 30, 2023		December 31, 2022
Income taxes	$	4,542	$	3,547
Research and development	736		579
Contract assets	405		504
Restricted cash(a)	53		148
Other	1,132		1,017
Other current assets	$	6,868	$	5,795

Dollars in millions	June 30, 2023		December 31, 2022
Equity investments	$	1,991	$	2,187
Inventories	720		484
Operating leases	1,274		1,220
Pension and postretirement	298		285
Research and development	470		496
Restricted cash(a)	—		54
Other	269		214
Other non-current assets	$	5,022	$	4,940

(a)    Restricted cash primarily consists of funds restricted for annual Company contributions to the defined contribution plan in the U.S. and escrow for litigation settlements. Cash is restricted when withdrawal or general use is contractually or legally restricted. As of June 30, 2022 restricted cash was $210 million.

20

Dollars in millions	June 30, 2023		December 31, 2022
Rebates and discounts	$	6,313	$	6,702
Income taxes	1,526		942
Employee compensation and benefits	770		1,425
Research and development	1,339		1,359
Dividends	1,191		1,196
Interest	304		321
Royalties	417		431
Operating leases	168		136
Other	2,033		2,074
Other current liabilities	$	14,061	$	14,586

Dollars in millions	June 30, 2023		December 31, 2022
Income taxes	$	3,166	$	3,992
Pension and postretirement	398		402
Operating leases	1,342		1,261
Deferred income	305		283
Deferred compensation	398		349
Other	293		303
Other non-current liabilities	$	5,902	$	6,590

Note 16. EQUITY

The following table summarizes changes in equity for the six months ended June 30, 2023:

	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, 2022	2,923	$	292	$	45,165	$	(1,281)	$	25,503	825	$	(38,618)	$	57
Net earnings	—	—		—		—		2,262		—	—		5
Other comprehensive loss	—	—		—		(87)		—		—	—		—
Cash dividends declared $0.57 per share	—	—		—		—		(1,197)		—	—		—
Share repurchase program	—	—		—		—		—		4	(250)		—
Stock compensation	—	—		(25)		—		—		(6)	60		—
Balance at March 31, 2023	2,923	$	292	$	45,140	$	(1,368)	$	26,568	823	$	(38,808)	$	62
Net earnings	—	—		—		—		2,073		—	—		4
Other comprehensive loss	—	—		—		(19)		—		—	—		—
Cash dividends declared $0.57 per share	—	—		—		—		(1,192)		—	—		—
Share repurchase program	—	—		—		—		—		13	(911)		—
Stock compensation	—	—		159		—		—		(2)	39		—
Distributions	—	—		—		—		—		—	—		(9)
Balance at June 30, 2023	2,923	292		45,299		(1,387)		27,449		834	(39,680)		57

The following table summarizes changes in equity for the six months ended June 30, 2022:

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	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 $0.54 per share	—	—		—		—		(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
Net earnings	—	—		—		—		1,421		—	—		8
Other comprehensive income	—	—		—		237		—		—	—		—
Cash dividends declared $0.54 per share	—	—		—		—		(1,152)		—	—		—
Stock repurchase program	—	—		300		—		—		2	(300)		—
Stock compensation	—	—		319		—		—		(8)	195		—
Distributions	—	—		—		—		—		—	—		(12)
Balance at June 30, 2022	2,923	292		44,375		(992)		24,217		788	(35,292)		61

BMS repurchased 17 million shares of its common stock for $1.2 billion during the six months ended June 30, 2023. The remaining share repurchase capacity under the BMS share repurchase program was approximately $6.0 billion as of June 30, 2023.

During the first quarter of 2022, BMS entered into accelerated share repurchase ("ASR") agreements to repurchase an aggregate amount of $5.0 billion of the Company's common stock. The ASR agreements were funded with cash on-hand and 65 million shares of common stock (85% of the $5.0 billion aggregate repurchase price) were received by BMS and included in treasury stock. During the second quarter of 2022, the first tranche of the ASR was settled and approximately 2 million shares of common stock were received by BMS and transferred to treasury stock.

The following table summarizes the changes in Other comprehensive income by component:

	Three Months Ended June 30, 2023						Six Months Ended June 30, 2023
Dollars in millions	Pretax		Tax		After Tax		Pretax		Tax		After Tax
Derivatives qualifying as cash flow hedges
Recognized in Other comprehensive income	$	94	$	(16)	$	78	$	81	$	(13)	$	68
Reclassified to net earnings(a)	(86)		11		(75)		(219)		30		(189)
Derivatives qualifying as cash flow hedges	8		(5)		3		(138)		17		(121)
Pension and postretirement benefits
Actuarial (losses)/gains	(13)		2		(11)		(13)		2		(11)
Foreign currency translation	(4)		(7)		(11)		31		(5)		26
Other comprehensive income	$	(9)	$	(10)	$	(19)	$	(120)	$	14	$	(106)

22

	Three Months Ended June 30, 2022						Six Months Ended June 30, 2022
Dollars in millions	Pretax		Tax		After Tax		Pretax		Tax		After Tax
Derivatives qualifying as cash flow hedges
Recognized in Other comprehensive income	$	481	$	(65)	$	416	$	601	$	(81)	$	520
Reclassified to net earnings(a)	(131)		16		(115)		(216)		28		(188)
Derivatives qualifying as cash flow hedges	350		(49)		301		385		(53)		332
Pension and postretirement benefits
Actuarial gains/(losses)	20		(3)		17		40		(7)		33
Amortization(b)	6		(1)		5		12		(3)		9
Settlements(b)	4		(1)		3		5		(1)		4
Pension and postretirement benefits	30		(5)		25		57		(11)		46
Marketable debt securities
Unrealized (losses)/gains	—		(1)		(1)		(2)		—		(2)
Foreign currency translation	(64)		(24)		(88)		(70)		(30)		(100)
Other comprehensive income	$	316	$	(79)	$	237	$	370	$	(94)	$	276

(a)Included in Cost of products sold and Other (income)/expense, net. Refer to "—Note 9. Financial Instruments and Fair Value Measurements" for further information.

(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	June 30, 2023		December 31, 2022
Derivatives qualifying as cash flow hedges	$	111	$	232
Pension and postretirement benefits	(634)		(623)
Foreign currency translation(a)	(864)		(890)
Accumulated other comprehensive loss	$	(1,387)	$	(1,281)

(a)Includes net investment hedge gains of $144 million and $125 million as of June 30, 2023 and December 31, 2022, respectively.

Note 17. EMPLOYEE STOCK BENEFIT PLANS

Stock-based compensation expense was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
Dollars in millions	2023		2022		2023		2022
Cost of products sold	$	13	$	11	$	24	$	19
Marketing, selling and administrative	56		48		107		96
Research and development	68		57		128		108
Total Stock-based compensation expense	$	137	$	116	$	259	$	223
Income tax benefit(a)	$	27	$	22	$	52	$	44

(a)    Income tax benefit excludes excess tax benefits from share-based compensation awards that were vested or exercised of $2 million and $20 million for the three and six months ended June 30, 2023, and $19 million and $59 million for the three and six months ended June 30, 2022, respectively.

The number of units granted and the weighted-average fair value on the grant date for the six months ended June 30, 2023 were as follows:

Units in millions	Units	Weighted-Average Fair Value
Restricted stock units	9.0	$	60.59
Market share units	1.0	58.18
Performance share units	1.5	64.18

Dollars in millions	Restricted Stock Units		Market Share Units		Performance Share Units
Unrecognized compensation cost	$	1,031	$	80	$	144
Expected weighted-average period in years of compensation cost to be recognized	3.0		3.1		2.0

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Note 18. LEGAL PROCEEDINGS AND CONTINGENCIES

BMS and certain of its subsidiaries are involved in various lawsuits, claims, government investigations and other legal proceedings that arise in the ordinary course of business. These claims or proceedings can involve various types of parties, including governments, competitors, customers, partners, suppliers, service providers, licensees, licensors, employees, or shareholders, among others. These matters may involve patent infringement, antitrust, securities, pricing, sales and marketing practices, environmental, commercial, contractual rights, licensing obligations, health and safety matters, consumer fraud, employment matters, product liability and insurance coverage, among others. The resolution of these matters often develops over a long period of time and expectations can change as a result of new findings, rulings, appeals or settlement arrangements. Legal proceedings that are significant or that BMS believes could become significant or material are described below.

While BMS does not believe that any of these matters, except as otherwise specifically noted below, will have a material adverse effect on its financial position or liquidity as BMS believes it has substantial claims and/or defenses in the matters, the outcomes of BMS's legal proceedings and other contingencies are inherently unpredictable and subject to significant uncertainties. There can be no assurance that there will not be an increase in the scope of one or more of these pending matters or any other or future lawsuits, claims, government investigations or other legal proceedings will not be material to BMS's financial position, results of operations or cash flows for a particular period. Furthermore, failure to successfully enforce BMS's patent rights would likely result in substantial decreases in the respective product revenues from generic competition.

Unless otherwise noted, BMS is unable to assess the outcome of the respective matters nor is it able to estimate the possible loss or range of losses that could potentially result for such matters. Contingency accruals are recognized when it is probable that a liability will be incurred and the amount of the related loss can be reasonably estimated. Developments in legal proceedings and other matters that could cause changes in the amounts previously accrued are evaluated each reporting period. For a discussion of BMS’s tax contingencies, see " —Note 7. Income Taxes."

INTELLECTUAL PROPERTY

Anti-PD-1, Anti-PD-L1 and CTLA-4 — U.S.

In September 2015, Dana-Farber Cancer Institute ("Dana-Farber") filed a complaint in the U.S. District Court for the District of Massachusetts seeking to correct the inventorship on up to six related U.S. patents directed to methods of treating cancer using PD-1 and PD-L1 antibodies. Specifically, Dana-Farber sought to add two scientists as inventors to these patents. In October 2017, Pfizer was allowed to intervene in the case alleging that one of the scientists identified by Dana-Farber was employed by a company eventually acquired by Pfizer during the relevant period. In May 2019, the District Court issued a decision ruling that the two scientists should be added as inventors to the patents, which decision was affirmed on appeal. In June 2019, Dana-Farber filed a new lawsuit in the District of Massachusetts against BMS seeking damages as a result of the decision adding the scientists as inventors. In February 2021, BMS filed a motion to dismiss that complaint. In August 2021, the Court denied the motion to dismiss, but ruled that Dana-Farber's claims for damages before May 17, 2019—the date of the District Court's ruling that Dana-Farber was a co-inventor of the patents—are preempted by federal patent law. On January 25, 2023, the Court held a hearing on a motion filed by BMS requesting that the Court enter summary judgment in BMS's favor. In April 2023, BMS and Dana-Farber entered into a settlement agreement and these litigations were dismissed.

On March 17, 2022, BMS filed a lawsuit in U.S. District Court for the District of Delaware against AstraZeneca Pharmaceuticals LP and AstraZeneca UK Ltd (collectively, "AZ") alleging that AZ's marketing of the PD-L1 antibody Imfinzi infringes certain claims of U.S. Patent Nos. 9,580,505, 9,580,507, 10,138,299, 10,308,714, 10,266,594, 10,266,595, 10,266,596 and 10,323,092. On April 25, 2023, BMS filed an additional lawsuit against AZ in U.S. District Court for the District of Delaware alleging that AZ's marketing of the PD-L1 antibody Imfinzi infringes U.S. Patent No. 9,402,899.

On January 23, 2023, BMS filed a lawsuit in U.S. District Court for the District of Delaware against AstraZeneca Pharmaceuticals LP and AstraZeneca AB (collectively, "AZ AB") alleging that AZ AB's marketing of the CTLA-4 antibody Imjudo infringes certain claims of U.S. Patent Nos. 9,320,811 and 9,273,135.

On July 24, 2023, BMS entered into an agreement with AZ and AZ AB (the "AZ Parties") to settle all outstanding claims between them in the CTLA-4 litigation and the two PD-L1 antibody litigations described above. Under the agreement, the AZ Parties are to pay an aggregate of $560 million to BMS in four payments through September 2026, which will be subject to sharing arrangements with Ono and Dana-Farber. BMS's share is approximately $418 million, of which the net present value will be reflected in income during the third quarter of 2023.

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Eliquis - Europe

Lawsuits have been filed by generic companies in various countries in Europe seeking revocation of our composition of matter patents and SPCs relating to Eliquis, and trials or preliminary proceedings have been held in certain of those cases.

In Denmark, BMS filed a request for a preliminary injunction against Teva, but the request was denied in December 2022, based on the finding that there is no imminent threat of a launch by Teva in Denmark.

In Finland, the court granted our request that a preliminary injunction be entered prohibiting Teva from offering, storing or selling generic Eliquis products in Finland that have obtained price and reimbursement.

In France, a trial was held regarding Teva's challenge to the validity of the French composition of matter patent and related SPC, and a decision was issued on June 8, 2023, confirming their validity and rejecting Teva's claims.

In Ireland, the court granted our request that a preliminary injunction be entered restraining Teva from making, offering, putting on the market and/or using and/or importing or stocking for the aforesaid purposes, generic Eliquis products. A trial regarding Teva's challenge to the validity of the Irish composition of matter patent and related SPC began on July 4, 2023, and is expected to conclude on July 28, 2023, with a decision expected sometime in the fourth quarter of 2023.

In the Netherlands, our requests that preliminary injunctions be entered to prevent at-risk generic launches by Sandoz, Stada and Teva prior to full trials on the validity of the Dutch composition of matter patent and SPC were denied by the lower courts. We appealed those denials, and a combined appellate hearing was held on June 29, 2023.

In Norway, a trial was held regarding Teva's challenge to the validity of the Norwegian composition of matter patent and related SPC, and a decision was issued on May 23, 2023, confirming their validity and rejecting Teva's claims.

In Sweden, a trial was held regarding Teva's challenge to the validity of the Swedish apixaban composition of matter patent and related SPC, and a decision was issued on November 2, 2022, confirming their validity and rejecting Teva's claims.

In the UK, Sandoz and Teva filed lawsuits in the United Kingdom seeking revocation of the UK apixaban composition of matter patent and related Supplementary Protection Certificate ("SPC"). BMS subsequently filed counterclaims for infringement in both actions. A combined trial took place in February 2022 and in a judgment issued on April 7, 2022, the judge found the UK apixaban composition of matter patent and related SPC invalid. BMS appealed the judgment and on May 4, 2023, the Court of Appeal upheld the lower court's decision finding the patent and SPC invalid. On June 1, 2023, BMS filed an application to appeal to the UK Supreme Court.

Following the above decisions in the UK and the Netherlands, generic manufacturers have begun marketing generic versions of Eliquis in the UK and the Netherlands, and may seek to market generic versions of Eliquis in additional countries in Europe, prior to the expiration of our patents, which may lead to additional infringement and invalidity actions involving Eliquis patents being filed in various countries in Europe.

Eliquis - U.S.

On February 24, 2023 and March 4, 2023, BMS received Notice Letters from Biocon and ScieGen, respectively, notifying BMS that they had filed ANDAs containing paragraph IV certifications seeking approval of generic versions of Eliquis in the U.S. In response, in April 2023, BMS filed patent infringement actions against Biocon and ScieGen in the U.S. District Court for the District of Delaware. On April 25, 2023, BMS entered into a confidential settlement agreement with ScieGen, settling all outstanding claims in the litigation with ScieGen. On June 16, 2023, BMS entered into a settlement agreement with Biocon settling all outstanding claims in the litigation with Biocon. The settlements with ScieGen and Biocon do not affect BMS's projected exclusivity period for Eliquis.

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Onureg – U.S.

In November 2021, BMS received a Notice Letter from Accord notifying BMS that Accord had filed an ANDA containing a paragraph IV certification seeking approval of a generic version of Onureg in the U.S. and challenging U.S. Patent No. 8,846,628 (the "'628 Patent"), an FDA Orange Book-listed formulation patent covering Onureg, which expires in 2030. In response, BMS filed a patent infringement action against Accord in the U.S. District Court for the District of Delaware.

In March 2023, BMS received an additional Notice Letter from Accord notifying BMS that Accord had filed an ANDA containing a paragraph IV certification challenging U.S. Patent No. 11,571,436 (the "'436 Patent"), a newly-listed FDA Orange-Book formulation patent covering Onureg, which expires in 2029. In response, BMS filed an additional patent infringement action against Accord in the U.S. District Court for the District of Delaware. A trial for the consolidated actions has been scheduled to begin on May 20, 2024.

In February 2023, Apotex Inc. filed a request for inter partes review ("IPR") of the '628 Patent. BMS's preliminary response to Apotex's IPR request was filed on May 15, 2023. On July 20, 2023, the USPTO granted Apotex's request to institute an IPR of the '628 Patent.

In May 2023, BMS received a Notice Letter from MSN Laboratories Private Limited ("MSN") notifying BMS that MSN had filed an ANDA containing a paragraph IV certification seeking approval of a generic version of Onureg in the U.S. and challenging the '628 Patent and the '436 Patent. In response, BMS filed a patent infringement action against MSN in the U.S. District Court for the District of Delaware. No trial date has been set.

Plavix* - Australia

Sanofi was notified that, in August 2007, GenRx Proprietary Limited ("GenRx") obtained regulatory approval of an application for clopidogrel bisulfate 75mg tablets in Australia. GenRx, formerly a subsidiary of Apotex Inc., subsequently changed its name to Apotex ("GenRx-Apotex"). In August 2007, GenRx-Apotex filed an application in the Federal Court of Australia seeking revocation of Sanofi's Australian Patent No. 597784 (Case No. NSD 1639 of 2007). Sanofi filed counterclaims of infringement and sought an injunction. On September 21, 2007, the Federal Court of Australia granted Sanofi's injunction. A subsidiary of BMS was subsequently added as a party to the proceedings. In February 2008, a second company, Spirit Pharmaceuticals Pty. Ltd., also filed a revocation suit against the same patent. This case was consolidated with the GenRx-Apotex case. On August 12, 2008, the Federal Court of Australia held that claims of Patent No. 597784 covering clopidogrel bisulfate, hydrochloride, hydrobromide, and taurocholate salts were valid. The Federal Court also held that the process claims, pharmaceutical composition claims, and claim directed to clopidogrel and its pharmaceutically acceptable salts were invalid. BMS and Sanofi filed notices of appeal in the Full Court of the Federal Court of Australia ("Full Court") appealing the holding of invalidity of the claim covering clopidogrel and its pharmaceutically acceptable salts, process claims, and pharmaceutical composition claims. GenRx-Apotex appealed. On September 29, 2009, the Full Court held all of the claims of Patent No. 597784 invalid. In March 2010, the High Court of Australia denied a request by BMS and Sanofi to hear an appeal of the Full Court decision. The case was remanded to the Federal Court for further proceedings related to damages sought by GenRx-Apotex. BMS and GenRx-Apotex settled, and the GenRx-Apotex case was dismissed. The Australian government intervened in this matter seeking maximum damages up to 449 million AUD ($297 million), plus interest, which would be split between BMS and Sanofi, for alleged losses experienced for paying a higher price for branded Plavix* during the period when the injunction was in place. BMS and Sanofi dispute that the Australian government is entitled to any damages. A trial was concluded in September 2017. In April 2020, the Federal Court issued a decision dismissing the Australian government's claim for damages. In May 2020, the Australian government appealed the Federal Court's decision and an appeal hearing concluded in February 2021. On June 26, 2023, the appeal court issued a ruling in BMS and Sanofi's favor, upholding the lower court's decision.

Revlimid - U.S.

In April 2023, Celgene received a Notice Letter from Deva Holdings A.S. ("Deva") notifying Celgene that Deva has filed an ANDA containing paragraph IV certifications seeking approval to market a generic version of Revlimid in the U.S. In response, on May 31, 2023, Celgene initiated a patent infringement action against Deva in the U.S. District Court for the District of New Jersey asserting certain FDA Orange Book listed patents. Deva has not yet responded to the complaint. No schedule has been entered by the Court.

Sprycel - U.S.

In January 2022, BMS received a Notice Letter from Xspray Pharma AB ("Xspray"), Nanocopoeia, LLC ("Nanocopoeia") and Handa Oncology, LLC ("Handa"), respectively, notifying BMS that each had filed a 505(b)(2) NDA application containing paragraph IV certifications seeking approval of a dasatinib product in the U.S. and challenging two FDA Orange Book-listed monohydrate form patents expiring in 2025 and 2026. In February 2022, BMS filed a patent infringement action against Xspray in the U.S. District Court for the District of New Jersey. In May 2022, BMS filed a patent infringement action against Nanocopoeia in the U.S. District Court for the District of Minnesota. In November 2022, BMS filed a patent infringement action against Handa in the U.S. District Court for the Northern District of California. No trial dates have been scheduled in any of these actions. Both Xspray and Nanocopoeia filed motions for a judgment based on the pleadings. On March 24, 2023, the Minnesota court denied Nanocopoeia's motion. On April 25, 2023, the New Jersey court denied Xspray's motion. On June 16, 2023, BMS entered into a confidential settlement agreement with Handa, settling all outstanding claims in the litigation.

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Zeposia - U.S.

On October 15, 2021, Actelion Pharmaceuticals LTD and Actelion Pharmaceuticals US, INC ("Actelion") filed a complaint for patent infringement in the United States District Court for the District of New Jersey against BMS and Celgene for alleged infringement of U.S. Patent No. 10,251,867 (the "'867 Patent"). The Complaint alleges that the sale of Zeposia infringes certain claims of the '867 Patent and Actelion is seeking damages and injunctive relief. No trial date has been scheduled.

PRICING, SALES AND PROMOTIONAL PRACTICES LITIGATION

Plavix* State Attorneys General Lawsuits

BMS and certain Sanofi entities are defendants in a consumer protection action brought by the attorney general of Hawaii relating to the labeling, sales and/or promotion of Plavix*. In February 2021, a Hawaii state court judge issued a decision against Sanofi and BMS, imposing penalties in the total amount of $834 million, with $417 million attributed to BMS. Sanofi and BMS appealed the decision. On March 15, 2023, the Hawaii Supreme Court issued its decision, reversing in part and affirming in part the trial court decision, vacating the penalty award and remanding the case for a new trial and penalty determination. A bench trial is scheduled to begin on September 25, 2023.

PRODUCT LIABILITY LITIGATION

BMS is a party to various product liability lawsuits. Plaintiffs in these cases seek damages and other relief on various grounds for alleged personal injury and economic loss. As previously disclosed, in addition to lawsuits, BMS also faces unfiled claims involving its products.

Abilify*

BMS and Otsuka are co-defendants in product liability litigation related to Abilify*. Plaintiffs allege Abilify* caused them to engage in compulsive gambling and other impulse control disorders. Cases have been filed in state and federal courts and additional cases are pending in Canada. The Judicial Panel on Multidistrict Litigation consolidated the federal court cases for pretrial purposes in the U.S. District Court for the Northern District of Florida. In February 2019, BMS and Otsuka entered into a master settlement agreement establishing a proposed settlement program to resolve all Abilify* compulsivity claims filed as of January 28, 2019 in the MDL as well as various state courts, including California and New Jersey. To date, the vast majority of cases have been dismissed based on participation in the settlement program or failure to comply with settlement related court orders and all remaining cases in the U.S. MDL litigation have since been resolved. Eleven inactive cases remain in New Jersey State court. There are also eleven cases pending in Canada (four class actions, seven individual injury claims). Out of the eleven cases in Canada, only two are active (the class actions in Quebec and Ontario), both of which class actions have now been certified.

Onglyza*

BMS and AstraZeneca are co-defendants in product liability litigation related to Onglyza*. Plaintiffs assert claims, including claims for wrongful death, as a result of heart failure or other cardiovascular injuries they allege were caused by their use of Onglyza*. In February 2018, the Judicial Panel on Multidistrict Litigation ordered all the federal Onglyza* cases to be transferred to an MDL in the U.S. District Court for the Eastern District of Kentucky. A significant majority of the claims are pending in the MDL, with others pending in a coordinated proceeding in California Superior Court in San Francisco ("JCCP"). On September 24, 2021, the JCCP court granted defendants' motion to exclude plaintiffs' only general causation expert and on January 5, 2022, the MDL court likewise granted defendants' motion to exclude plaintiffs' expert. On March 30, 2022, the JCCP court granted summary judgment to defendants, thus effectively dismissing the 18 claims previously pending in California state court. The decision was affirmed by the California Court of Appeal on April 19, 2023. Plaintiffs filed a petition for review by the California Supreme Court on May 29, 2023, which remains pending. Defendants filed a summary judgment motion in the MDL as well, which the MDL court granted on August 2, 2022. Plaintiffs filed their Notice of Appeal on December 2, 2022. As part of BMS's global diabetes business divestiture, BMS sold Onglyza* to AstraZeneca in February 2014 and any potential liability with respect to Onglyza* is expected to be shared with AstraZeneca.

27

SECURITIES LITIGATION

Celgene Securities Litigations

Beginning in March 2018, two putative class actions were filed against Celgene and certain of its officers in the U.S. District Court for the District of New Jersey (the "Celgene Securities Class Action"). The complaints allege that the defendants violated federal securities laws by making misstatements and/or omissions concerning (1) trials of GED-0301, (2) Celgene's 2020 outlook and projected sales of Otezla*, and (3) the new drug application for Zeposia. The Court consolidated the two actions and appointed a lead plaintiff, lead counsel, and co-liaison counsel for the putative class. In February 2019, the defendants filed a motion to dismiss plaintiff''s amended complaint in full. In December 2019, the Court denied the motion to dismiss in part and granted the motion to dismiss in part (including all claims arising from alleged misstatements regarding GED-0301). Although the Court gave the plaintiff leave to re-plead the dismissed claims, it elected not to do so, and the dismissed claims are now dismissed with prejudice. In November 2020, the Court granted class certification with respect to the remaining claims. In March 2023, the Court granted the defendants leave to file a motion for summary judgment, the briefing for which was completed in June 2023.

In April 2020, certain Schwab management investment companies on behalf of certain Schwab funds filed an individual action in the U.S. District Court for the District of New Jersey asserting largely the same allegations as the Celgene Securities Class Action against the same remaining defendants in that action (the "Schwab Action"). In July 2020, the defendants filed a motion to dismiss the plaintiffs' complaint in full. In March 2021, the Court granted in part and denied in part defendants' motion to dismiss consistent with its decision in the Celgene Securities Class Action.

The California Public Employees' Retirement System in April 2021 (the "CalPERS Action"); DFA Investment Dimensions Group Inc., on behalf of certain of its funds; and American Century Mutual Funds, Inc., on behalf of certain of its funds, in July 2021 (respectively the "DFA Action" and the "American Century Action"), and GIC Private Limited in September 2021 (the "GIC Action"), filed separate individual actions in the U.S. District Court for the District of New Jersey asserting largely the same allegations as the Celgene Securities Class Action and the Schwab individual action against the same remaining defendants in those actions. In October 2021, these actions were consolidated for pre-trial proceedings with the Schwab Action. The Court also consolidated any future direct actions raising common questions of law and fact with the Schwab Action.

No trial dates have been scheduled in any of the above Celgene Securities Litigations.

Contingent Value Rights Litigations

In June 2021, an action was filed against BMS in the U.S. District Court for the Southern District of New York asserting claims of alleged breaches of a Contingent Value Rights Agreement ("CVR Agreement") entered into in connection with the closing of BMS's acquisition of Celgene Corporation in November 2019. The successor trustee under the CVR Agreement alleges that BMS breached the CVR Agreement by allegedly failing to use "diligent efforts" to obtain FDA approval of liso-cel (Breyanzi) before a contractual milestone date, thereby avoiding a $6.4 billion potential obligation to holders of the contingent value rights governed by the CVR Agreement and by allegedly failing to permit inspection of records in response to a request by the successor trustee. The successor trustee seeks damages in an amount to be determined at trial and other relief, including interest and attorneys' fees. BMS disputes the successor trustee's allegations. BMS filed a motion to dismiss the successor trustee's complaint, which was denied on June 24, 2022.

In October 2021, alleged former Celgene stockholders filed a complaint in the U.S. District Court for the Southern District of New York asserting claims on behalf of a putative class of Celgene stockholders who received CVRs in the BMS merger with Celgene for violations of sections 14(a) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act") relating to the joint proxy statement. That action later was consolidated with another action filed in the same court, and a consolidated complaint thereafter was filed asserting claims on behalf of a class of CVR acquirers, whether in the BMS merger with Celgene or otherwise, for violations of sections 11, 12(a)(2), and 15 of the Securities Act of 1933 (the "Securities Act") and sections 10(b), 14(a) and 20(2) of the Exchange Act. The complaint alleges that the February 22, 2019 joint proxy statement was materially false or misleading because it failed to disclose that BMS allegedly had no intention to obtain FDA approval for liso-cel (Breyanzi) by the applicable milestone date in the CVR Agreement and that certain statements made by BMS or certain BMS officers in periodic SEC filings, earnings calls, press releases, and investor presentations between December 2019 and November 2020 were materially false or misleading for the same reason. Defendants moved to dismiss the complaint. On March 1, 2023, the Court entered an opinion and order granting defendants' motion and dismissed the complaint in its entirety. The claims under Sections 11, 12(a)(2), and 15 of the Securities Act and Section 14(a) of the Exchange Act were dismissed with prejudice. The claims under Sections 10(a) and 20(a) of the Exchange Act were dismissed with leave to file a further amended complaint which plaintiffs filed on April 14, 2023. Defendants moved to dismiss the amended complaint and briefing on the motion was completed on June 23, 2023. The motion is currently pending before the Court.

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In November 2021, an alleged purchaser of CVRs filed a complaint in the Supreme Court of the State of New York for New York County asserting claims on behalf of a putative class of CVR acquirers for violations of sections 11(a) and 12(a)(2) of the Securities Act of 1933. The complaint alleges that the registration statement filed in connection with the proposed merger transaction between Celgene and BMS was materially false or misleading because it failed to disclose that allegedly BMS had no intention at the time to obtain FDA approval for liso-cel (Breyanzi) by the contractual milestone date. The complaint asserts claims against BMS, the members of its board of directors at the time of the joint proxy statement, and certain BMS officers who signed the registration statement. Defendants have moved to stay the action pending resolution of the federal action or, in the alternative, to dismiss the complaint. In lieu of responding to the motion, the plaintiff filed an amended complaint on June 15, 2023. Defendants again filed a motion to stay or, in the alternative, to dismiss the amended complaint on July 13, 2023.

In November 2021, an alleged Celgene stockholder filed a complaint in the Superior Court of New Jersey, Union County asserting claims on behalf of two separate putative classes, one of acquirers of CVRs and one of acquirers of BMS common stock, for violations of sections 11(a), 12(a)(2), and 15 of the Securities Act. The complaint alleges that the registration statement filed in connection with the proposed merger transaction between Celgene and BMS was materially false or misleading because it failed to disclose that allegedly BMS had no intention at the time to obtain FDA approval for liso-cel (Breyanzi) by the contractual milestone date. The complaint asserts claims against BMS, the members of its board of directors at the time of the joint proxy statement, certain BMS officers who signed the registration statement and Celgene's former chairman and chief executive officer. Defendants moved to stay the action pending resolution of the federal action and, in the alternative, to dismiss the complaint. On February 17, 2023, the Court granted defendants' motion to stay and declined to reach the merits of defendants' motion to dismiss. The Court deemed the action stayed pending resolution of the federal action, subject to plaintiff's right to seek to vacate the stay should changed circumstances warrant such relief, and filed a written order staying the case for 200 days.

No trial dates have been scheduled in any of the above CVR Litigations.

OTHER LITIGATION

IRA Litigation

On June 16, 2023, BMS filed a lawsuit against the U.S. Department of Health & Human Services and the Centers for Medicare & Medicaid Services, et al., challenging the constitutionality of the IRA. A program in the IRA requires pharmaceutical companies, like BMS, under the threat of significant penalties, to sell their most innovative and effective medicines at government-dictated prices. BMS argues that this program violates the Fifth Amendment, which requires the government to pay just compensation if it takes property for public use, by requiring pharmaceutical manufacturers to provide innovative medicines to third parties at prices set by the government, without any requirement that those prices reflect fair market value. BMS also argues that the IRA violates the First Amendment right to free speech by requiring manufacturers to state publicly that the government's price setting is a true negotiation that resulted in a fair price, even if it was not.

Thalomid and Revlimid Litigations

Beginning in November 2014, certain putative class action lawsuits were filed against Celgene in the U.S. District Court for the District of New Jersey alleging that Celgene violated various antitrust, consumer protection, and unfair competition laws by (a) allegedly securing an exclusive supply contract for the alleged purpose of preventing a generic manufacturer from securing its own supply of thalidomide active pharmaceutical ingredient, (b) allegedly refusing to sell samples of Thalomid and Revlimid brand drugs to various generic manufacturers for the alleged purpose of bioequivalence testing necessary for ANDAs to be submitted to the FDA for approval to market generic versions of these products, (c) allegedly bringing unjustified patent infringement lawsuits in order to allegedly delay approval for proposed generic versions of Thalomid and Revlimid, and/or (d) allegedly entering into settlements of patent infringement lawsuits with certain generic manufacturers that allegedly have had anticompetitive effects. The plaintiffs, on behalf of themselves and putative classes of third-party payers, sought injunctive relief and damages. The various lawsuits were consolidated into a master action for all purposes. In March 2020, Celgene reached a settlement with the class plaintiffs. In October 2020, the Court entered a final order approving the settlement and dismissed the matter. That settlement did not resolve the claims of certain entities that opted out of the settlement, and who have since filed new suits advancing related theories. As described below, those suits, together with a suit by certain specialty pharmacies and a new putative class action suit, are pending.

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In March 2019, Humana Inc. ("Humana"), which opted out of the above settlement, filed a lawsuit against Celgene in the U.S. District Court for the District of New Jersey. Humana's complaint makes largely the same claims and allegations as were made in the now settled Thalomid and Revlimid antitrust class action litigation. The complaint purports to assert claims on behalf of Humana and its subsidiaries in several capacities, including as a direct purchaser and as an indirect purchaser, and seeks, among other things, treble and punitive damages, injunctive relief and attorneys' fees and costs. In May 2019, Celgene filed a motion to dismiss Humana's complaint. In April 2022, the Court issued an order denying Celgene's motion to dismiss. That order addressed only Celgene's argument that certain of Humana's claims were barred by the statute of limitations. The Court's order did not address Celgene's other grounds for dismissal and instead directed Celgene to present those arguments in a renewed motion to dismiss following the filing of amended complaints. In May 2022, Humana filed an amended complaint against Celgene and BMS asserting the same claims based on additional factual allegations. Celgene and BMS subsequently filed a motion to dismiss Humana's amended complaint, which was fully briefed in November 2022. No trial date has been scheduled.

United HealthCare Services, Inc. ("UHS"), Blue Cross Blue Shield Association ("BCBSA"), BCBSM Inc., Health Care Service Corporation ("HCSC"), Blue Cross and Blue Shield of Florida Inc., Cigna Corporation ("Cigna"), Molina Healthcare, Inc. ("Molina") and several MSP related entities (MSP Recovery Claims, Series LLC; MSPA Claims 1, LLC; MAO-MSO Recovery II, LLC, Series PMPI, a segregated series of MAO-MSO Recovery II, LLC; MSP Recovery Claims Series 44, LLC; MSP Recovery Claims PROV, Series LLC; and MSP Recovery Claims CAID, Series LLC (together, "MSP")) filed lawsuits making largely the same claims and allegations as were made in the now settled class action litigation and in the Humana opt-out action. Certain of the matters have made additional claims related to copay assistance for Thalomid and Revlimid. These cases are now pending in the U.S. District Court for the District of New Jersey. Celgene and BMS's motion to dismiss the Humana amended complaint applies to these other opt‑out actions as well, and these other opt‑out actions will proceed as described above with respect to that Humana opt-out action. No trial dates have been scheduled.

In May 2021, Molina sued Celgene and BMS in San Francisco Superior Court. Molina's complaint makes largely the same claims and allegations as were made in the now settled class action litigation. In June 2022, the San Francisco Superior Court dismissed 63 of Molina’s claims, which Molina later reasserted in the District of New Jersey as described above, and stayed the remaining 4 claims. No activity is expected in this case until disposition of the New Jersey actions.

Certain other entities that opted out of the now‑settled class action have also filed summonses related to two actions in the Philadelphia County Court of Common Pleas in connection with the allegations made by Humana and other opt‑out entities. Those actions have been placed in deferred status pending further developments in the above opt‑out cases.

In November 2022, certain specialty pharmacies filed an action as direct purchasers against Celgene, BMS, and certain generic manufacturers in the U.S. District Court for the District of New Jersey. The action makes largely the same claims and allegations against Celgene and BMS as were made with respect to Revlimid in the now settled class action litigation, and seek injunctive relief and damages under the Sherman Antitrust Act. Also in November 2022, a putative class of end-payor plaintiffs filed an action against Celgene, BMS, and certain generic manufacturers in the U.S. District Court for the District of New Jersey. The class complaint brings claims based on Celgene's allegedly anticompetitive settlements of Revlimid patent litigation, seeking damages under state antitrust and consumer protection laws and injunctive relief under federal antitrust law. Celgene, BMS and the generic defendants have filed consolidated motions to dismiss these two actions, and the motions were fully briefed in May 2023. No trial dates have been scheduled.

In May 2018, Humana filed a lawsuit against Celgene in the Pike County Circuit Court of the Commonwealth of Kentucky. Humana's complaint alleges Celgene engaged in unlawful off-label marketing in connection with sales of Thalomid and Revlimid and asserts claims against Celgene for fraud, breach of contract, negligent misrepresentation, unjust enrichment and violations of New Jersey's Racketeer Influenced and Corrupt Organizations Act ("NJ RICO"). The complaint seeks, among other things, treble and punitive damages, injunctive relief and attorneys' fees and costs. Humana subsequently dismissed its claims for breach of contract voluntarily. A trial for this matter began on January 31, 2023. On January 25, 2023, the Court granted Celgene's summary judgment motion on Humana's claims for violations of NJ RICO and dismissed those claims. On March 2, 2023, following a multi-week trial, the jury returned a full defense verdict in Celgene's favor on Humana's claims of fraud and negligent misrepresentation. In May 2020, Celgene filed suit against Humana Pharmacy, Inc. ("HPI"), a Humana subsidiary, in Delaware Superior Court. Celgene's complaint alleges that HPI breached its contractual obligations to Celgene by assigning claims to Humana that Humana is now asserting. The complaint seeks damages for HPI's breach as well as a declaratory judgment. On February 14, 2023, the Court granted summary judgment in favor of Celgene on its breach of contract claims. In July 2023, BMS and Humana entered into a settlement agreement settling all outstanding claims in both the Kentucky and HPI litigations.

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BeiGene Arbitration Matter

On July 5, 2017, Celgene Logistics Sàrl ("Celgene Logistics") and BeiGene, Ltd. (together with its assignees, "BeiGene"), entered into a License and Supply Agreement (the "LSA") pursuant to which BeiGene was granted, among other things, an exclusive license to distribute and commercialize Revlimid, Vidaza and Abraxane in China.

BeiGene initiated an arbitration proceeding against Celgene Logistics and BMS at the International Chamber of Commerce in June 2020, asserting various claims, including breach of contract under the LSA. In October 2021, Celgene Logistics delivered notice to BeiGene terminating the LSA with respect to Abraxane. A final hearing on the merits was held in June 2022, and the parties have completed post-hearing briefing and closing arguments.

MSK Contract Litigation

On April 1, 2022, Memorial Sloan Kettering Cancer Center and Eureka Therapeutics, Inc. (collectively, "Plaintiffs") filed a complaint against BMS, Celgene and Juno (collectively, "Defendants"). In June 2022, Plaintiffs filed an amended complaint. Plaintiffs allege that Defendants breached a license agreement by allegedly failing to use commercially reasonable efforts to develop, manufacture, and commercialize a certain chimeric antigen receptor product and by failing to pay Plaintiffs a running royalty of at least 1.5% of worldwide sales of Abecma allegedly owed to Plaintiffs under the license agreement. Defendants disagree with plaintiffs' claims, and filed a motion to dismiss the amended complaint in July 2022. No trial date has been scheduled.

GOVERNMENT INVESTIGATIONS

Like other pharmaceutical companies, BMS and certain of its subsidiaries are subject to extensive regulation by national, state and local authorities in the U.S. and other countries in which BMS operates. As a result, BMS, from time to time, is subject to various governmental and regulatory inquiries and investigations as well as threatened legal actions and proceedings. It is possible that criminal charges, substantial fines and/or civil penalties, could result from government or regulatory investigations.

ENVIRONMENTAL PROCEEDINGS

As previously reported, BMS is a party to several environmental proceedings and other matters, and is responsible under various state, federal and foreign laws, including CERCLA, for certain costs of investigating and/or remediating contamination resulting from past industrial activity at BMS's current or former sites or at waste disposal or reprocessing facilities operated by third parties.

CERCLA and Other Remediation Matters

With respect to CERCLA and other remediation matters for which BMS is responsible under various state, federal and international laws, BMS typically estimates potential costs based on information obtained from the U.S. Environmental Protection Agency, or counterpart state or foreign agency and/or studies prepared by independent consultants, including the total estimated costs for the site and the expected cost-sharing, if any, with other "potentially responsible parties," and BMS accrues liabilities when they are probable and reasonably estimable. BMS estimated its share of future costs for these sites to be $84 million as of June 30, 2023, which represents the sum of best estimates or, where no best estimate can reasonably be made, estimates of the minimal probable amount among a range of such costs (without taking into account any potential recoveries from other parties). The amount includes the estimated costs for any additional probable loss associated with the previously disclosed North Brunswick Township High School Remediation Site.

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Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Management’s discussion and analysis of results of operations and financial condition is provided as a supplement to and should be read in conjunction with the consolidated financial statements and related footnotes included elsewhere in this Quarterly Report on Form 10-Q to enhance the understanding of our results of operations, financial condition and cash flows.

EXECUTIVE SUMMARY

Our principal strategy is to combine the resources, scale and capability of a large pharmaceutical company with the speed, agility and focus on innovation typically found in the biotech industry. Our priorities are to continue to renew and diversify our portfolio through launching new medicines, advancing our early, mid and late-stage pipeline, and executing disciplined business development. Our focus is on discovering, developing and delivering transformational medicines for patients facing serious diseases in the following core therapeutic areas: (i) oncology with a priority in certain tumor types; (ii) hematology with opportunities to broaden our franchise and sustain a leadership position in multiple myeloma; (iii) immunology with priorities in relapsing multiple sclerosis, psoriasis, psoriatic arthritis, lupus, RA and inflammatory bowel disease, liver and lung; (iv) cardiovascular disease; and (v) neuroscience with a focus on neurodegenerative disease. We are working on accelerating our drug development and delivery of our innovative medicines to patients, enhancing our commercial operating model, as well as enhancing flexibility and reliability of our manufacturing network. We are committed to the strategic allocation of resources and investing in areas that maximize value and drive sustainable growth. We remain committed to maintaining a strong investment grade credit rating and returning capital to shareholders. For further information on our strategy, see "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations—Executive Summary—Strategy" in our 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.

In 2023, we received approvals for initial and/or additional indications or formulations for the following marketed products both in the EU and Japan, which further expanded our geographical reach in immunology and hematology, including: (i) approvals in Japan and by the EC of Opdivo in combination with chemotherapy for the neoadjuvant treatment of patients with resectable NSCLC (ii) EC approval of Camzyos for the treatment of symptomatic obstructive HCM; (iii) EC approval of Breyanzi for the treatment of diffuse large B-cell lymphoma; (iv) EC approval for Sotyktu for moderate-to-severe plaque psoriasis; and (v) EC approval for an additional indication for anemia associated with non-transfusion-dependent beta thalassemia for Reblozyl. In addition, we continue expanding our commercial CAR-T manufacturing network through the FDA approval of our Devens, MA facility in June 2023.

Our revenues decreased by 4% for the six months ended June 30, 2023 due to lower Revlimid sales and 1% foreign exchange impact, partially offset by In-Line Products (primarily Opdivo and Eliquis) and New Product Portfolio (primarily Opdualag, Abecma and Reblozyl). The $0.81 increase in GAAP EPS primarily resulted from a deferred income tax benefit related to a non-U.S. tax ruling, lower equity investment losses in 2023, lower Acquired IPRD charges, partially offset by lower revenues. After adjusting for specified items, non-GAAP EPS decreased $0.09 as a result of lower revenues, partially offset by lower Acquired IPRD charges, lower weighted-average common shares outstanding, higher interest income and royalties.

Our revenues decreased by 6% during the three months ended June 30, 2023 primarily due to lower Revlimid sales driven by generic erosion and an increase in patients receiving free drug product for Revlimid, and to a lesser extent, Pomalyst, from the Bristol Myers Squibb Patient Assistance Foundation, a separate and independent 501(c)(3) entity to which BMS donates product.

	Three Months Ended June 30,				Six Months Ended June 30,
Dollars in millions, except per share data	2023		2022		2023		2022
Total Revenues	$	11,226	$	11,887	$	22,563	$	23,535
Diluted earnings per share
GAAP	$	0.99	$	0.66	$	2.06	$	1.25
Non-GAAP	1.75		1.93		3.80		3.89

Our non-GAAP financial measures, including non-GAAP earnings and related EPS information, are adjusted to exclude specified items that represent certain costs, expenses, gains and losses and other items impacting the comparability of financial results. For further information and reconciliations relating to our non-GAAP financial measures refer to "—Non-GAAP Financial Measures."

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Economic and Market Factors

Governmental Actions

Our products continue to be subject to increasing pressures across the portfolio from pharmaceutical market access and pricing controls and discounting, changes to tax and importation laws and other restrictions in the U.S., the EU and other regions around the world that result in lower prices, lower reimbursement rates and smaller populations for whom payers will reimburse, which can negatively impact our results of operations (including intangible asset impairment charges), operating cash flow, liquidity and financial flexibility. For example, some of the provisions of the IRA signed into law in August 2022, were as follows: (i) the government requires pharmaceutical manufacturers like BMS, under the threat of significant penalties, to sell certain innovative Medicare Part D and Part B medicines at government-set discounted prices, (ii) manufacturers are to pay an inflation-based rebate for Medicare Part B and Part D medicines, and (iii) Medicare Part D redesign. In addition, there were changes made to U.S. tax laws, including (i) a 15% minimum tax that generally applies to U.S. corporations, and a (ii) a non-deductible 1% excise tax provision on net stock repurchases, to be applied to repurchases beginning in 2023. Implementation of this legislation is expected to be carried out through upcoming actions by regulatory authorities, the outcome of which is uncertain. We continue to evaluate the impact of the IRA on our results of operations and it is possible that these changes may result in a material impact on our business and results of operations. See "Item 1. Financial Statements—Note 18. Legal Proceedings and Contingencies—Other Litigation" for further information. Furthermore, countries are expected to make changes to their tax laws and updates to international tax treaties to implement the agreement by the Organization for Economic Co-operation and Development to establish a global minimum tax. See risk factors on these items included under "Part I—Item 1A. Risk Factors—Product, Industry and Operational Risks—Increased pricing pressure and other restrictions in the U.S. and abroad continue to negatively affect our revenues and profit margins" and "—Changes to tax regulations could negatively impact our earnings" in our 2022 Form 10-K.

Significant Product and Pipeline Approvals

The following is a summary of the significant approvals received in 2023 as of July 27, 2023:

Product Date Approval

Opdivo June 2023 EC approval of Opdivo in combination with platinum-based chemotherapy for the neoadjuvant treatment of resectable NSCLC at a high risk of recurrence in adult patients with tumor cell PD-L1 expression > 1%.

Camzyos June 2023 EC approval of Camzyos for the treatment of symptomatic (New York Heart Association, class II-III) obstructive HCM.

Breyanzi May 2023 EC approval of Breyanzi for the treatment of adult patients with diffuse large B-cell lymphoma, high grade B-cell lymphoma, primary mediastinal large B-cell lymphoma and follicular lymphoma grade 3B, who relapsed within 12 months from completion of, or are refractory to, first-line chemoimmunotherapy.

Opdivo March 2023 Japan's Ministry of Health, Labour and Welfare approval of Opdivo plus chemotherapy for the neoadjuvant treatment of patients with resectable NSCLC.

Sotyktu March 2023 EC approval of Sotyktu for the treatment of adults with moderate-to-severe plaque psoriasis who are candidates for systemic therapy.

Reblozyl March 2023 EC approval of Reblozyl for the treatment in adult patients of anemia associated with non-transfusion-dependent beta thalassemia.

Refer to "—Product and Pipeline Developments" for the developments in our marketed products and late-stage pipeline since the start of the second quarter of 2023.

Divestitures, Licensing and Other Arrangements

Refer to "Item 1. Financial Statements—Note 3. Alliances" and "—Note 4. Divestitures, Licensing and Other Arrangements" for information on significant divestitures, licensing and other arrangements.

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RESULTS OF OPERATIONS

Regional Revenues

The composition of the changes in revenues was as follows:

	Three Months Ended June 30,								Six Months Ended June 30,
Dollars in millions	2023		2022		% Change		Foreign Exchange(b)		2023		2022		% Change		Foreign Exchange(b)
United States	$	7,891	$	8,268	(5)	%	—		$	15,924	$	15,962	—		—
International	3,160		3,427		(8)	%	(2)	%	6,309		7,154		(12)	%	(3)	%
Other(a)	175		192		(9)	%	—		330		419		(21)	%	—
Total	$	11,226	$	11,887	(6)	%	(1)	%	$	22,563	$	23,535	(4)	%	(1)	%

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

(b)    Foreign exchange impacts were derived by applying the prior period average currency rates to the current period sales.

United States

•U.S. revenues decreased 5% during the second quarter of 2023 primarily due to lower Revlimid sales driven by generic erosion and an increase in patients receiving free drug product for Revlimid, and to a lesser extent, Pomalyst, from the Bristol Myers Squibb Patient Assistance Foundation, a separate and independent 501(c)(3) entity to which BMS donates product, partially offset by our New Product Portfolio and In-Line Products. Year-to-date, lower Revlimid sales was fully offset by New Product Portfolio and In-Line Products. Average U.S. net selling prices decreased 1% year-to-date compared to the same period a year ago.

International

•International revenues decreased 8% during the second quarter of 2023 and 12% year-to-date primarily due to Revlimid and Eliquis generic erosion, lower average net selling prices and foreign exchange, partially offset by Opdivo and New Product Portfolio.

No single country outside the U.S. contributed more than 10% of total revenues during the six months ended June 30, 2023 and 2022. Our business is typically not seasonal.

GTN Adjustments

The reconciliation of gross product sales to net product sales by each significant category of GTN adjustments was as follows:

	Three Months Ended June 30,								Six Months Ended June 30,
Dollars in millions	2023			2022			% Change		2023			2022			% Change
Gross product sales	$	18,111		$	17,299		5	%	$	35,399		$	33,949		4	%
GTN adjustments
Charge-backs and cash discounts	(2,279)			(1,750)			30	%	(4,370)			(3,513)			24	%
Medicaid and Medicare rebates	(3,143)			(2,624)			20	%	(5,625)			(4,708)			19	%
Other rebates, returns, discounts and adjustments	(1,772)			(1,440)			23	%	(3,439)			(2,935)			17	%
Total GTN adjustments	(7,194)			(5,814)			24	%	(13,434)			(11,156)			20	%
Net product sales	$	10,917		$	11,485		(5)	%	$	21,965		$	22,793		(4)	%
GTN adjustments percentage	40		%	34		%	6	%	38		%	33		%	5	%
U.S.	45		%	38		%	7	%	43		%	38		%	5	%
Non-U.S.	20		%	16		%	4	%	19		%	16		%	3	%

Reductions to provisions for product sales made in prior periods resulting from changes in estimates were $11 million and $98 million for the three and six months ended June 30, 2023 and $123 million and $197 million for the three and six months ended June 30, 2022, respectively. GTN adjustments are primarily a function of product sales volume, regional and payer channel mix, contractual or legislative discounts and rebates. U.S. GTN adjustments percentage increased primarily due to product mix and higher government channel rebates.

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Product Revenues

	Three Months Ended June 30,						Six Months Ended June 30,
Dollars in millions	2023		2022		% Change		2023		2022		% Change
In-Line Products
Eliquis	$	3,204	$	3,235	(1)	%	$	6,627	$	6,446	3	%
U.S.	2,340		2,192		7	%	4,894		4,339		13	%
Non-U.S.	864		1,043		(17)	%	1,733		2,107		(18)	%
Opdivo	2,145		2,063		4	%	4,347		3,986		9	%
U.S.	1,230		1,205		2	%	2,520		2,304		9	%
Non-U.S.	915		858		7	%	1,827		1,682		9	%
Pomalyst/Imnovid	847		908		(7)	%	1,679		1,734		(3)	%
U.S.	570		616		(7)	%	1,115		1,173		(5)	%
Non-U.S.	277		292		(5)	%	564		561		1	%
Orencia	927		876		6	%	1,691		1,668		1	%
U.S.	707		654		8	%	1,269		1,246		2	%
Non-U.S.	220		222		(1)	%	422		422		—
Sprycel	458		544		(16)	%	887		1,027		(14)	%
U.S.	328		372		(12)	%	623		677		(8)	%
Non-U.S.	130		172		(24)	%	264		350		(25)	%
Yervoy	585		525		11	%	1,093		1,040		5	%
U.S.	369		326		13	%	683		637		7	%
Non-U.S.	216		199		9	%	410		403		2	%
Mature and other products	472		512		(8)	%	939		1,049		(10)	%
U.S.	197		194		2	%	379		374		1	%
Non-U.S.	275		318		(14)	%	560		675		(17)	%
Total In-Line Products	8,638		8,663		—		17,263		16,950		2	%
U.S.	5,741		5,559		3	%	11,483		10,750		7	%
Non-U.S.	2,897		3,104		(7)	%	5,780		6,200		(7)	%

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	Three Months Ended June 30,				Six Months Ended June 30,
Dollars in millions	2023	2022	% Change		2023	2022	% Change
New Product Portfolio
Reblozyl	234	172	36	%	440	328	34	%
U.S.	179	144	24	%	337	278	21	%
Non-U.S.	55	28	96	%	103	50	*
Abecma	132	89	48	%	279	156	79	%
U.S.	115	72	60	%	233	128	82	%
Non-U.S.	17	17	—		46	28	64	%
Opdualag	154	58	*		271	64	*
U.S.	152	58	*		268	64	*
Non-U.S.	2	—	N/A		3	—	N/A
Zeposia	100	66	52	%	178	102	75	%
U.S.	75	48	56	%	127	69	84	%
Non-U.S.	25	18	39	%	51	33	55	%
Breyanzi	100	39	*		171	83	*
U.S.	83	33	*		141	74	91	%
Non-U.S.	17	6	*		30	9	*
Onureg	44	32	38	%	78	55	42	%
U.S.	31	25	24	%	56	44	27	%
Non-U.S.	13	7	86	%	22	11	100	%
Inrebic	27	23	17	%	52	41	27	%
U.S.	19	20	(5)	%	36	35	3	%
Non-U.S.	8	3	*		16	6	*
Camzyos	46	3	*		75	3	*
U.S.	46	3	*		75	3	*
Non-U.S.	—	—	N/A		—	—	N/A
Sotyktu	25	—	N/A		41	—	N/A
U.S.	24	—	N/A		39	—	N/A
Non-U.S.	1	—	N/A		2	—	N/A
Total New Product Portfolio	862	482	79	%	1,585	832	91	%
U.S.	724	403	80	%	1,312	695	89	%
Non-U.S.	138	79	75	%	273	137	99	%
Total In-Line Products and New Product Portfolio	9,500	9,145	4	%	18,848	17,782	6	%
U.S.	6,465	5,962	8	%	12,795	11,445	12	%
Non-U.S.	3,035	3,183	(5)	%	6,053	6,337	(4)	%

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	Three Months Ended June 30,						Six Months Ended June 30,
Dollars in millions	2023		2022		% Change		2023	2022	% Change
Recent LOE Products(a)
Revlimid	1,468		2,501		(41)	%	3,218	5,298	(39)	%
U.S.	1,237		2,130		(42)	%	2,778	4,168	(33)	%
Non-U.S.	231		371		(38)	%	440	1,130	(61)	%
Abraxane	258		241		7	%	497	455	9	%
U.S.	189		176		7	%	351	349	1	%
Non-U.S.	69		65		6	%	146	106	38	%
Total Recent LOE Products	1,726		2,742		(37)	%	3,715	5,753	(35)	%
U.S.	1,426		2,306		(38)	%	3,129	4,517	(31)	%
Non-U.S.	300		436		(31)	%	586	1,236	(53)	%
Total Revenues	$	11,226	$	11,887	(6)	%	22,563	23,535	(4)	%
U.S.	7,891		8,268		(5)	%	15,924	15,962	—
Non-U.S.	3,335		3,619		(8)	%	6,639	7,573	(12)	%

*    Change in excess of 100%.

(a)    Recent LOE Products includes products with significant decline in revenue from a prior reporting period as a result of a loss of exclusivity.

In-Line Products

Eliquis (apixaban) — an oral Factor Xa inhibitor, indicated for the reduction in risk of stroke/systemic embolism in NVAF and for the treatment of DVT/PE and reduction in risk of recurrence following initial therapy.

•U.S. revenues increased 7% during the second quarter of 2023 and primarily due to higher demand, partially offset by lower average net selling prices, including GTN adjustments in 2023.

•U.S. revenues increased 13% year-to-date primarily due to higher demand. Eliquis growth rates were lower in the second quarter of 2023 compared to year-to-date primarily due to lower average net selling prices resulting from changes in payer channel mix. A majority of Eliquis patients enter the coverage gap during the third and fourth quarters which is expected to result in lower revenues during the second half of the year.

•International revenues decreased 17% during the second quarter of 2023 and 18% year-to-date primarily due to lower average net selling price and generic erosion in Canada and the UK. Year-to-date was also impacted by foreign exchange of 3%. Excluding foreign exchange impacts, revenues decreased by 17% and 15%, respectively.

•Following the May 2021 expiration of regulatory exclusivity for Eliquis in Europe, and court decisions in (i) the United Kingdom finding the UK apixaban composition of matter patent and related SPC invalid and (ii) the Netherlands denying a BMS request for a preliminary injunction that would have prevented an at-risk generic launch, generic manufacturers have begun marketing generic versions of Eliquis in the UK and the Netherlands, and may seek to market generic versions of Eliquis in additional countries in Europe, prior to the expiration of our patents, which has led to additional infringement and invalidity actions involving our Eliquis patents being filed in various countries in Europe. Most recently, in France, Norway and Sweden, courts held in BMS's favor, confirming the validity of the composition of matter patent and related SPCs in those countries. We believe in the innovative science behind Eliquis and the strength of our intellectual property, which we will defend against infringement. Refer to "Item 1. Financial Statements—Note 18. Legal Proceedings and Contingencies—Intellectual Property" for further information.

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Opdivo (nivolumab) — a fully human monoclonal antibody that binds to the PD-1 on T and NKT cells that has been approved for several anti-cancer indications including bladder, blood, CRC, head and neck, RCC, HCC, lung, melanoma, MPM, stomach and esophageal cancer. The Opdivo+Yervoy regimen also is approved in multiple markets for the treatment of NSCLC, melanoma, MPM, RCC, CRC and various gastric and esophageal cancers. There are several ongoing potentially registrational studies for Opdivo across other tumor types and disease areas, in monotherapy and in combination with Yervoy and various anti-cancer agents.

•U.S. revenues increased 2% during the second quarter of 2023 primarily due to higher average net selling prices.

•U.S. revenues increased 9% year-to-date due to higher demand across multiple indications and to a lesser extent higher average net selling prices. The higher demand was related to the following indications: the Opdivo+Yervoy combinations for NSCLC, various gastric, esophageal and bladder cancers. Opdivo growth rates were lower during the second quarter of 2023 compared to year-to-date primarily due to customer buying patterns.

•International revenues increased 7% during the second quarter of 2023 and 9% year-to-date due to higher demand as a result of additional indication launches and core indications partially offset by foreign exchange impacts of 3% and 5%, respectively, and lower average net selling prices. Excluding foreign exchange impacts, revenues increased 10% and 14%, respectively.

Pomalyst/Imnovid (pomalidomide) — a proprietary, distinct, small molecule that is administered orally and modulates the immune system and other biologically important targets. Pomalyst/Imnovid is indicated for patients with multiple myeloma who have received at least two prior therapies including lenalidomide and a proteasome inhibitor and have demonstrated disease progression on or within 60 days of completion of the last therapy.

•U.S. revenues decreased 7% during the second quarter of 2023 and 5% year-to-date due to an increase in the number of patients receiving free drug product from the Bristol Myers Squibb Patient Assistance Foundation, a separate and independent 501(c)(3) entity to which BMS donates products, partially offset by higher average net selling prices.

•International revenues decreased 5% during the second quarter of 2023 primarily due to lower average net selling prices and foreign exchange impacts of 1%. Excluding foreign exchange impacts, revenues decreased by 4%.

•International revenues increased 1% year-to-date primarily due to higher demand partially offset by lower average net selling prices and foreign exchange impacts of 3%. Excluding foreign exchange impacts, revenues increased by 4%.

Orencia (abatacept) — a fusion protein indicated for adult patients with moderate to severe active RA and PsA and is also indicated for reducing signs and symptoms in certain pediatric patients with moderately to severely active polyarticular JIA.

•U.S. revenues increased 8% during the second quarter of 2023 and 2% year-to-date primarily due to higher demand partially offset by lower average net selling prices.

•International revenues decreased 1% during the second quarter of 2023 due to lower average net selling prices and foreign exchange impacts of 3%, partially offset by higher demand. Excluding foreign exchange impacts, revenues increased by 2%.

•International revenues remained constant year-to-date with higher demand being offset by foreign exchange impacts of 6% and lower average net selling prices. Excluding foreign exchange impacts, revenues increased by 6%.

•BMS is not aware of any Orencia biosimilars on the market in the U.S., EU and Japan. Formulation and additional patents expire in 2026 and beyond.

Sprycel (dasatinib) — an oral inhibitor of multiple tyrosine kinase indicated for the first-line treatment of patients with Philadelphia chromosome-positive CML in chronic phase and the treatment of adults with chronic, accelerated, or myeloid or lymphoid blast phase CML with resistance or intolerance to prior therapy, including Gleevec* (imatinib mesylate) and the treatment of children and adolescents aged 1 year to 18 years with chronic phase Philadelphia chromosome-positive CML.

•U.S. revenues decreased 12% during the second quarter of 2023 and 8% year-to-date primarily due to lower average net selling prices.

•International revenues decreased 24% during the second quarter of 2023 and 25% year-to-date primarily due to lower demand as a result of generic erosion and foreign exchange impacts of 2% and 5%, respectively. Excluding foreign exchange impacts, revenues decreased by 22% and 20%, respectively.

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•In the U.S., BMS entered into settlement agreements with certain third parties to sell generic dasatinib products beginning in September 2024, or earlier in certain circumstances. In the EU, generic dasatinib products have entered the market. In Japan, the composition of matter patent has been extended to 2024 for the treatment of non-imatinib-resistant CML, but generics have been approved for other indications.

Yervoy (ipilimumab) — a monoclonal antibody for the treatment of patients with unresectable or metastatic melanoma. The Opdivo+Yervoy regimen also is approved in multiple markets for the treatment of NSCLC, melanoma, MPM, RCC, CRC and esophageal cancer.

•U.S. revenues increased 13% during the second quarter of 2023 and 7% year-to-date due to higher demand.

•International revenues increased 9% during the second quarter of 2023 and 2% year-to-date primarily due to higher demand as a result of additional indication launches and core indications, partially offset by lower average net selling prices and foreign exchange impacts of 2% and 5%, respectively. Excluding foreign exchange impacts, revenues increased by 11% and 7%, respectively.

Mature and other products — includes all other products, including those which have lost exclusivity in major markets, OTC products, royalty revenue and mature products.

•International revenues decreased 14% during the second quarter of 2023 and 17% year-to-date primarily due to continued generic erosion, lower average net selling prices and foreign exchange impacts of 2% and 3%, respectively. Excluding foreign exchange impacts, revenues decreased by 12% and 14%, respectively.

New Product Portfolio

Reblozyl (luspatercept-aamt) — an erythroid maturation agent indicated for the treatment of anemia in adult patients with transfusion dependent and non-transfusion dependent beta thalassemia who require regular red blood cell transfusions and for the treatment of anemia failing an ESA in adult patients with very low- to intermediate-risk MDS who have ring sideroblasts and require RBC transfusions. Reblozyl was launched in November 2019.

•U.S. revenues increased 24% during the second quarter of 2023 and 21% year-to-date primarily due to higher demand.

Abecma (idecabtagene vicleucel) — is a B-cell maturation antigen-directed genetically modified autologous CAR–T cell therapy indicated for the treatment of adult patients with relapsed or refractory multiple myeloma after four or more prior lines of therapy, including an immunomodulatory agent, a proteasome inhibitor, and an anti-CD38 monoclonal antibody. Abecma was launched in May 2021.

•U.S. revenues increased 60% during the second quarter of 2023 and 82% year-to-date primarily due to higher demand enabled by additional manufacturing capacity.

Opdualag (nivolumab and relatlimab-rmbw) — a combination of nivolumab, a PD-1 blocking antibody, and relatlimab, a LAG-3 blocking antibody, indicated for the treatment of adult and pediatric patients 12 years of age or older with unresectable or metastatic melanoma. Opdualag was launched in March 2022.

Zeposia (ozanimod) — an oral immunomodulatory drug used to treat relapsing forms of multiple sclerosis, to include clinically isolated syndrome, relapsing-remitting disease, and active secondary progressive disease, in adults and to treat moderately to severely active UC in adults. Zeposia was launched in June 2020.

Breyanzi (lisocabtagene maraleucel) — is a CD19-directed genetically modified autologous CAR-T cell therapy indicated for the treatment of adult patients with certain types of relapsed or refractory large B-cell lymphoma after one or more lines of systemic therapy. Breyanzi was launched in April 2021.

Onureg (azacitidine) — an oral hypomethylating agent that incorporates into DNA and RNA, indicated for continued treatment of adult patients with AML who achieved first complete remission or complete remission with incomplete blood count recovery following intensive induction chemotherapy and are not able to complete intensive curative therapy. Onureg was launched in September 2020.

Inrebic (fedratinib) — an oral kinase inhibitor indicated for the treatment of adult patients with intermediate-2 or high-risk primary or secondary (post-polycythemia vera or post-essential thrombocythemia) myelofibrosis. Inrebic was launched in August 2019.

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Camzyos (mavacamten) — a cardiac myosin inhibitor indicated for the treatment of adults with symptomatic obstructive HCM to improve functional capacity and symptoms. Camzyos was launched in April 2022.

Sotyktu (deucravacitinib) — an oral, selective, allosteric tyrosine kinase 2 inhibitor indicated for the treatment of adults with moderate-to-severe plaque psoriasis who are candidates for systemic therapy or phototherapy. Sotyktu was launched in September 2022.

Recent LOE Products

Revlimid (lenalidomide) — an oral immunomodulatory drug that in combination with dexamethasone is indicated for the treatment of patients with multiple myeloma. Revlimid as a single agent is also indicated as a maintenance therapy in patients with multiple myeloma following autologous hematopoietic stem cell transplant.

•U.S. revenues decreased 42% during the second quarter of 2023 and 33% year-to-date primarily due to generic erosion and an increase in the number of patients receiving free drug product from the Bristol Myers Squibb Patient Assistance Foundation, a separate and independent 501(c)(3) entity to which BMS donates products, and to a lesser extent lower average net selling prices.

•International revenues decreased 38% during the second quarter of 2023 and 61% year-to-date primarily due to generic erosion across several European countries and to a lesser extent lower average net selling prices, as well as foreign exchange impacts of 2% in the second quarter and year-to-date. Excluding foreign exchange impacts, revenues decreased by 36% and 59%, respectively.

•In the U.S., certain third parties have been granted volume-limited licenses to sell generic lenalidomide beginning in March 2022 or thereafter. Pursuant to these licenses, several generics have entered or are expected to enter the U.S. market with volume-limited quantities of generic lenalidomide. In the EU, generic lenalidomide products have entered the market. Global revenues for Revlimid are expected to decline to approximately $5.5 billion in 2023.

Abraxane (paclitaxel albumin-bound particles for injectable suspension) — a solvent-free protein-bound chemotherapy product that combines paclitaxel with albumin using our proprietary Nab® technology platform, and is used to treat breast cancer, NSCLC and pancreatic cancer, among others.

•U.S. revenues increased 7% during the second quarter of 2023 primarily due to higher branded sales resulting from lower authorized generic sales during the second quarter of 2023. U.S. revenues year-over-year remained relatively flat.

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Estimated End-User Demand

Pursuant to the SEC Consent Order described under "— SEC Consent Order" in our 2022 Form 10-K, we monitor inventory levels on hand in the U.S. wholesaler distribution channel and outside of the U.S. in the direct customer distribution channel. We are obligated to disclose products with levels of inventory in excess of one month on hand or expected demand, subject to a de minimis exception. There were no products in the U.S. wholesaler distribution channel with estimated levels of inventory in excess of one month as of June 30, 2023. Estimated levels of inventory outside of the U.S. in the direct distribution channel in excess of one month on hand were not material to our results of operations as of March 31, 2023.

In the U.S., we generally determine our months on hand estimates using inventory levels of product on hand and the amount of out-movement provided by our three largest wholesalers, which accounted for approximately 85% of total gross sales of U.S. products during the six months ended June 30, 2023. Factors that may influence our estimates include generic competition, seasonality of products, wholesaler purchases in light of increases in wholesaler list prices, new product launches, new warehouse openings by wholesalers and new customer stockings by wholesalers. In addition, these estimates are calculated using third-party data, which may be impacted by their recordkeeping processes.

Revlimid and Pomalyst are distributed in the U.S. primarily through contracted pharmacies under the Lenalidomide REMS (Revlimid) and Pomalyst REMS programs, respectively. These are proprietary risk-management distribution programs tailored specifically to provide for the safe and appropriate distribution and use of Revlimid and Pomalyst. Internationally, Revlimid and Imnovid are distributed under mandatory risk-management distribution programs tailored to meet local authorities' specifications to provide for the products' safe and appropriate distribution and use. These programs may vary by country and, depending upon the country and the design of the risk-management program, the product may be sold through hospitals or retail pharmacies.

Camzyos is only available through a restricted program called the Camzyos REMS Program. Product distribution is limited to REMS certified pharmacies, and enrolled pharmacies must only dispense to patients who are authorized to receive Camzyos.

Our non-U.S. businesses have significantly more direct customers. Information on available direct customer product level inventory and corresponding out-movement information and the reliability of third-party demand information varies widely. We limit our direct customer sales channel inventory reporting to where we can influence demand. When this information does not exist or is otherwise not available, we have developed a variety of methodologies to estimate such data, including using historical sales made to direct customers and third-party market research data related to prescription trends and end-user demand. Given the difficulties inherent in estimating third-party demand information, we evaluate our methodologies to estimate direct customer product level inventory and to calculate months on hand on an ongoing basis and make changes as necessary. Factors that may affect our estimates include generic competition, seasonality of products, price increases, new product launches, new warehouse openings by direct customers, new customer stockings by direct customers and expected direct customer purchases for governmental bidding situations. As such, all of the information required to estimate months on hand in the direct customer distribution channel for non-U.S. business during the six months ended June 30, 2023 is not available prior to the filing of this Quarterly Report on Form 10-Q. We will disclose any product with levels of inventory in excess of one month on hand or expected demand for the current quarter, subject to a de minimis exception, in our next quarterly report on Form 10-Q.

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Expenses

	Three Months Ended June 30,						Six Months Ended June 30,
Dollars in millions	2023		2022		% Change		2023		2022		% Change
Cost of products sold(a)	$	2,876	$	2,720	6	%	$	5,442	$	5,191	5	%
Marketing, selling and administrative	1,934		1,787		8	%	3,696		3,618		2	%
Research and development	2,258		2,321		(3)	%	4,579		4,581		—
Acquired IPRD	158		400		(61)	%	233		733		(68)	%
Amortization of acquired intangible assets	2,257		2,417		(7)	%	4,513		4,834		(7)	%
Other (income)/expense, net	(116)		284		*		(529)		933		*
Total Expenses	$	9,367	$	9,929	(6)	%	$	17,934	$	19,890	(10)	%

*    In excess of +/- 100%.

(a)    Excludes amortization of acquired intangible assets.

Cost of Products Sold

Cost of products sold increased by $156 million in the second quarter of 2023 primarily due to product mix and higher CAR-T cell therapy inventory charges, partially offset by lower inventory purchase price adjustments and the elimination of the Puerto Rico excise tax.

Cost of products sold increased by $251 million year-to-date, primarily due to product mix, higher CAR-T cell therapy inventory charges, higher profit sharing and royalties ($212 million year-to-date) partially offset by lower inventory purchase price adjustments and the elimination of the Puerto Rico excise tax and foreign exchange.

Marketing, Selling and Administrative

Marketing, selling and administrative expense increased by $147 million in the second quarter of 2023 primarily due to higher advertising, promotion and sales force costs to support new product launches, as well as higher consulting costs supporting corporate initiatives.

Marketing, selling and administrative expense increased $78 million year-to-date primarily due to higher advertising, promotion and sales force costs to support new product launches and higher consulting costs supporting corporate initiatives, partially offset by timing of charitable giving ($150 million).

Research and Development

Research and development expense decreased by $63 million in the second quarter of 2023 and $2 million year-to-date.

Acquired IPRD

Acquired IPRD charges resulting from upfront or contingent milestone payments in connection with asset acquisitions or licensing of third-party intellectual property rights were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
Dollars in millions	2023		2022		2023		2022
Mavacamten royalty extinguishment	$	—	$	295	$	—	$	295
Dragonfly milestone	—		—		—		175
Prothena opt-in license fee	55		—		55		—
Immatics upfront license fee	15		—		15		150
Evotec designation and opt-in license fees	40		—		90		—
BridgeBio upfront license fee	—		90		—		90
Other	48		15		73		23
Acquired IPRD charges	$	158	$	400	$	233	$	733

Amortization of Acquired Intangible Assets

Amortization of acquired intangible assets decreased by $160 million in the second quarter of 2023 and $321 million year-to-date primarily due to Abraxane marketed product right being fully amortized in the fourth quarter of 2022.

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Other (Income)/Expense, Net

Other (income)/expense, net changed by $400 million in the second quarter of 2023 and $1.5 billion year-to-date primarily due to equity investments, litigation and other settlements and other items discussed below.

	Three Months Ended June 30,				Six Months Ended June 30,
Dollars in millions	2023		2022		2023		2022
Interest expense	$	282	$	313	$	570	$	639
Royalty and licensing income	(340)		(287)		(703)		(593)
Royalty income - divestitures	(218)		(221)		(406)		(392)
Equity investment losses	58		308		213		952
Integration expenses	59		124		126		229
(Gain)/Loss on debt redemption	—		(9)		—		266
Divestiture gains	—		—		—		(211)
Litigation and other settlements	(7)		25		(332)		(12)
Investment income	(95)		(27)		(197)		(37)
Provision for restructuring	113		20		180		43
Other	32		38		20		49
Other (income)/expense, net	$	(116)	$	284	$	(529)	$	933

•Interest expense decreased in the second quarter of 2023 and year-to-date compared to 2022 due to additional debt maturities. Refer to "Item 1. Financial Statements and Supplementary Data—Note 10. Financing Arrangements" for further information.

•Royalties increased in the second quarter of 2023 and year-to-date primarily due to higher Keytruda* and diabetes business divestiture royalties. Refer to "Item 8. Financial Statements and Supplementary Data—Note 4. Divestitures, Licensing and Other Arrangements" for further information.

•Equity investments generated lower losses in the second quarter of 2023 and year-to-date compared to 2022 primarily driven by fair value adjustments for investments that have readily determinable fair value. Refer to "Item 8. Financial Statements and Supplementary Data—Note 9. Financial Instruments and Fair Value Measurements" for more information.

•Integration expenses decreased in the second quarter of 2023 and year-to-date primarily due to lower consulting fees to implement Celgene integration initiatives related to processes and systems.

•(Gain)/Loss on debt redemption resulted from the early redemption of long-term debt during the first six months ended June 30, 2022, as further discussed in "Item 1. Financial Statements and Supplementary Data—Note 10. Financing Arrangements".

•Divestiture gains resulted from the divestiture of product rights for several mature products during the first quarter of 2022.

•Litigation and other settlements include $400 million of income related to the Nimbus' TYK2 program change of control provision and additional settlement costs related to commercial disputes regarding intellectual property matters during the first six months of 2023.

•Investment income increased during the second quarter of 2023 and year-to-date primarily due to higher interest rates.

•Provision for restructuring includes exit and other costs primarily related to certain restructuring activities including a new plan in 2023 discussed further in "Item 1. Financial Statements and Supplementary Data—Note 6. Restructuring".

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Income Taxes

	Three Months Ended June 30,						Six Months Ended June 30,
Dollars in millions	2023			2022			2023			2022
Earnings before income taxes	$	1,859		$	1,958		$	4,629		$	3,645
Income tax (benefit)/provision	(218)			529			285			933
Effective tax rate	(11.7)		%	27.0		%	6.2		%	25.6		%
Impact of specified items	(28.6)		%	10.0		%	(10.0)		%	9.2		%
Effective tax rate excluding specified items	16.9		%	17.0		%	16.2		%	16.4		%

Provision for 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 effective tax rate during the second quarter of 2023 was primarily impacted by a $656 million deferred income tax benefit following the receipt of a non-U.S. tax ruling regarding the deductibility of a statutory impairment of subsidiary investments. In addition, the effective tax rate during the first six months of 2023 was impacted by 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 the 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.

The changes in the non-GAAP effective tax rate were due to the changes in the aforementioned Puerto Rico tax decree, jurisdictional earnings mix and the tax reserve releases in the first quarter of 2023.

Non-GAAP Financial Measures

Our non-GAAP financial measures, such as non-GAAP earnings and related EPS information, are adjusted to exclude certain costs, expenses, gains and losses and other specified items that are evaluated on an individual basis. These items are adjusted after considering their quantitative and qualitative aspects and typically have one or more of the following characteristics, such as being highly variable, difficult to project, unusual in nature, significant to the results of a particular period or not indicative of past or future operating results. These items are excluded from non-GAAP earnings and related EPS information because the Company believes they neither relate to the ordinary course of the Company's business nor reflect the Company's underlying business performance. Similar charges or gains were recognized in prior periods and will likely reoccur in future periods, including (i) amortization of acquired intangible assets, including product rights that generate a significant portion of our ongoing revenue and will recur until the intangible assets are fully amortized, (ii) unwind of inventory purchase price adjustments, (iii) acquisition and integration expenses, (iv) restructuring costs, (v) accelerated depreciation and impairment of property, plant and equipment and intangible assets, (vi) costs of acquiring a priority review voucher, (vii) divestiture gains or losses, (viii) stock compensation resulting from acquisition-related equity awards, (ix) pension, legal and other contractual settlement charges, (x) equity investment and contingent value rights fair value adjustments (including fair value adjustments attributed to limited partnership equity method investments), (xi) income resulting from the change in control of the Nimbus Therapeutics TYK2 Program and (xii) amortization of fair value adjustments of debt acquired from Celgene in our 2019 exchange offer, among other items. Deferred and current income taxes attributed to these items are also adjusted for considering their individual impact to the overall tax expense, deductibility and jurisdictional tax rates. Certain other significant tax items are also excluded such as the impact resulting from a non-U.S. tax ruling regarding the deductibility of a statutory impairment of subsidiary investments. We also provide international revenues for our priority products excluding the impact of foreign exchange. We calculate foreign exchange impacts by converting our current-period local currency financial results using the prior period average currency rates and comparing these adjusted amounts to our current-period results. Reconciliations of these non-GAAP measures to the most comparable GAAP measures are included in Exhibit 99.1 to our Form 8-K filed on July 27, 2023 and are incorporated herein by reference.

Non-GAAP information is intended to portray the results of our baseline performance, supplement or enhance management, analysts and investors' overall understanding of our underlying financial performance and facilitate comparisons among current, past and future periods. This information is not intended to be considered in isolation or as a substitute for the related financial measures prepared in accordance with GAAP and may not be the same as or comparable to similarly titled measures presented by other companies due to possible differences in method and in the items being adjusted. We encourage investors to review our consolidated financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure.

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Specified items were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
Dollars in millions	2023		2022		2023		2022
Inventory purchase price accounting adjustments	$	31	$	102	$	84	$	154
Site exit and other costs	36		43		37		43
Cost of products sold	67		145		121		197
Site exit and other costs	20		4		20		6
Marketing, selling and administrative	20		4		20		6
IPRD impairments	—		—		20		40
Priority review voucher	—		—		95		—
Inventory purchase price accounting adjustments	—		21		—		108
Site exit and other costs	6		—		6		—
Research and development	6		21		121		148
Amortization of acquired intangible assets	2,257		2,417		4,513		4,834
Interest expense(a)	(13)		(21)		(27)		(48)
Equity investment losses	58		307		208		950
Integration expenses	59		124		126		229
(Gains)/loss on debt redemption	—		(9)		—		266
Divestiture gains	—		—		—		(211)
Litigation and other settlements	—		—		(335)		(40)
Provision for restructuring	113		20		180		43
Other	—		42		(5)		42
Other (income)/expense, net	217		463		147		1,231
Increase to pretax income	2,567		3,050		4,922		6,416
Income taxes on items above	(311)		(321)		(604)		(719)
Income taxes attributed to non-U.S. tax ruling	(656)		—		(656)		—
Income taxes	(967)		(321)		(1,260)		(719)
Increase to net earnings	$	1,600	$	2,729	$	3,662	$	5,697

(a)    Includes amortization of purchase price adjustments to Celgene debt.

The reconciliations from GAAP to Non-GAAP were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
Dollars in millions, except per share data	2023		2022		2023		2022
Net earnings attributable to BMS
GAAP	$	2,073	$	1,421	$	4,335	$	2,699
Specified items	1,600		2,729		3,662		5,697
Non-GAAP	$	3,673	$	4,150	$	7,997	$	8,396
Weighted-average common shares outstanding – diluted	2,102		2,149		2,107		2,157
Diluted earnings per share attributable to BMS
GAAP	$	0.99	$	0.66	$	2.06	$	1.25
Specified items	0.76		1.27		1.74		2.64
Non-GAAP	$	1.75	$	1.93	$	3.80	$	3.89

45

FINANCIAL POSITION, LIQUIDITY AND CAPITAL RESOURCES

Our net debt position was as follows:

Dollars in Millions	June 30, 2023		December 31, 2022
Cash and cash equivalents	$	8,372	$	9,123
Marketable debt securities – current	358		130
Total cash, cash equivalents and marketable debt securities	8,730		9,253
Short-term debt obligations	(3,020)		(4,264)
Long-term debt	(34,656)		(35,056)
Net debt position	$	(28,946)	$	(30,067)

We believe that our existing cash, cash equivalents and marketable debt securities, together with our ability to generate cash from operations and our access to short-term and long-term borrowings, are sufficient to satisfy our existing and anticipated cash needs, including dividends, capital expenditures, milestone payments, working capital, income taxes, restructuring initiatives, business development, business combinations, asset acquisitions, repurchase of common stock, debt maturities, as well as any debt repurchases through redemptions or tender offers. During the first six months of 2023, our net debt position decreased by $1.1 billion primarily driven by $4.9 billion of cash provided by operations partially offset by $3.5 billion of dividend payments and common stock repurchases.

During the first six months of 2023, $1.9 billion of debt matured and was repaid including $750 million 2.750% Notes, $890 million 3.250% Notes and $239 million 7.150% Notes.

Under our share repurchase program, we repurchased 17 million shares of common stock for $1.2 billion during the six months ended June 30, 2023. The remaining share repurchase capacity under the share repurchase program was $6.0 billion as of June 30, 2023. A $4.0 billion accelerated share repurchase program was announced in July 2023, which is expected to be executed during the third quarter of 2023.

Dividends payments were $2.4 billion during the six months ended June 30, 2023. Dividend paid per common share was $0.57 during the first and second quarters of 2023. The decision to authorize dividends is made on a quarterly basis by our Board of Directors.

Annual capital expenditures are expected to be approximately $1.2 billion and $1.5 billion in 2023 and 2024, respectively. We continue to make capital expenditures in connection with the expansion of our manufacturing capabilities, research and development and other facility-related activities.

There were no borrowings outstanding under our $5.0 billion revolving credit facility as of June 30, 2023 and December 31, 2022.

Under our commercial paper program, we may issue a maximum of $5.0 billion unsecured notes that have maturities of not more than 366 days from the date of issuance. There were no commercial paper borrowings outstanding as of June 30, 2023.

Cash Flows

The following is a discussion of cash flow activities:

	Six Months Ended June 30,
Dollars in millions	2023		2022
Cash flow provided by/(used in):
Operating activities	$	4,857	$	6,073
Investing activities	(539)		(194)
Financing activities	(5,223)		(9,173)

Operating Activities

The $1.2 billion decrease in cash provided by operating activities compared to 2022 was primarily due to lower cash collections of $1.1 billion (net of rebates and discounts) and higher tax payments ($400 million), partially offset by lower nonrefundable advance payments for research and development services ($400 million).

46

Investing Activities

The $345 million increase in cash used in investing activities compared to 2022 was primarily due to changes in the amount of marketable debt securities held ($724 million), lower divestitures proceeds ($173 million) partially offset by lower Acquired IPRD payments and other investments (647 million).

Financing Activities

The $4.0 billion decrease in cash used in financing activities compared to 2022 was primarily due to lower repurchases of common stock ($3.8 billion), lower net debt borrowings ($954 million), partially offset by lower proceeds from stock option exercises ($791 million).

Product and Pipeline Developments

Our R&D programs are managed on a portfolio basis from early discovery through late-stage development and include a balance of early-stage and late-stage programs to support future growth. Our late-stage R&D programs in Phase III development include both investigational compounds for initial indications and additional indications or formulations for marketed products. The following are the developments in our marketed products and our late-stage pipeline since the start of the second quarter of 2023:

Product Indication Date Developments

Opdivo	Bladder	July 2023	Announced results from the sub-study of the Phase III CheckMate -901 trial which showed that Opdivo in combination with cisplatin-based chemotherapy followed by Opdivo monotherapy demonstrated statistically significant benefits in overall survival and progression-free survival compared to standard-of-care cisplatin-based combinations as a first-line treatment for patients with unresectable or metastatic urothelial carcinoma who are eligible for cisplatin-based chemotherapy, no new safety concerns have been identified.
	Melanoma	July 2023	Announced that the CHMP of the EMA has recommended approval of Opdivo as a monotherapy for the adjuvant treatment of adults and adolescents 12 years of age and older with completely resected stage IIB or IIC melanoma. The opinion is based on results from the Phase III CheckMate -76K trial.
	NSCLC	June 2023	Announced EC approval of Opdivo in combination with platinum-based chemotherapy for the neoadjuvant treatment of resectable NSCLC at a high risk of recurrence in adult patients with tumor cell PD-L1 expression > 1%. The approval is based on results from the Phase III CheckMate -816 trial.
	Prostate Cancer	July 2023	Announced that results from the Phase III CheckMate -7DX trial evaluating Opdivo in combination with docetaxel in patients with advanced or metastatic castration-resistant prostate cancer did not meet the primary endpoints of radiographic progressive free survival at final analysis, nor overall survival at an interim analysis. No safety concerns were reported. Based on the recommendation from the data monitoring committee, the Company has decided to discontinue the study.

Opdivo+Yervoy NSCLC June 2023 Announced four-year follow-up results from the Phase III CheckMate -9LA trial demonstrating durable, long-term survival benefits with Opdivo plus Yervoy with two cycles of chemotherapy compared to four cycles of chemotherapy alone in previously untreated patients with metastatic NSCLC.

Reblozyl MDS May 2023 Announced that the results from the Phase III COMMANDS trial evaluating Reblozyl versus epoetin alfa, an erythropoiesis-stimulating agent (ESA) for the treatment of anemia in adult patients with very low-, low- or intermediate-risk MDS who require red blood cell transfusions and are ESA-naïve, showed that nearly twice as many patients treated with Reblozyl, achieved transfusion independence with concurrent hemoglobin increase versus epoetin alfa, including clinically relevant subgroups. Reblozyl demonstrated a durable response rate with nearly 2.5 years median transfusion independence.

47

Product Indication Date Developments

Reblozyl MDS May 2023 Announced that the FDA has accepted the sBLA and the EMA has validated the Type II Variation Application for Reblozyl to expand its current indication to include treatment of anemia without previous use of erythropoiesis-stimulating agents (ESA-naïve) in adult patients with very low- to intermediate-risk MDS who may require red blood cell transfusions. In the U.S., the FDA has granted the application Priority Review and assigned a PDUFA goal date of August 28, 2023. The submissions are based on results from the Phase III COMMANDS trial.
In addition, the Japan's Ministry of Health, Labor and Welfare has accepted our New Drug Application (JNDA) for Reblozyl as a treatment of anemia in adult patients with MDS, including myelodysplastic/myeloproliferative neoplasm with ring sideroblasts and thrombocytosis, based on the MEDALIST trial, a Japan local Phase II trial, and the results of COMMANDS clinical trial.

Abecma Multiple Myeloma April 2023 Announced with our alliance partner, 2seventy bio, Inc., that the FDA accepted the sBLA for Abecma for the treatment of adult patients with relapsed and refractory multiple myeloma who have received an immunomodulatory agent, a proteasome inhibitor, and an anti-CD38 monoclonal antibody. The FDA has assigned a PDUFA goal date of December 16, 2023.
The EMA has also validated our Type II variation for the extension of indication for Abecma to treat adult patients with relapsed or refractory multiple myeloma who have received an immunomodulatory agent, a proteasome inhibitor, and an anti-CD38 monoclonal antibody. Validation of the application confirms the submission is complete and begins the procedure and scientific assessment. In addition, the Japan's Ministry of Health, Labour and Welfare has accepted our sNDA for Abecma in patients who have received at least two prior therapies, including an immunomodulatory agent, a proteasome inhibitor, and an anti-CD38 monoclonal antibody, and have experienced disease progression or relapse after the last therapy. The three regulatory applications are based on results from the Phase III KarMMa-3 trial.

Breyanzi	Lymphoma	May 2023	Announced results from the Phase I/II TRANSCEND CLL 004 trial evaluating Breyanzi in adults with relapsed or refractory chronic lymphocytic leukemia or small lymphocytic lymphoma showing that Breyanzi delivered statistically significant complete response rates in 18.4% of patients in the primary efficacy analysis set. Among patients who achieved a complete response, no disease progression or deaths were observed, with median duration of response not reached.
		May 2023	Announced EC approval of Breyanzi for the treatment of adult patients with diffuse large B-cell lymphoma, high grade B-cell lymphoma, primary mediastinal large B-cell lymphoma and follicular lymphoma grade 3B, who relapsed within 12 months from completion of, or are refractory to, first-line chemoimmunotherapy. The approval is based on results from the Phase III TRANSFORM trial.
		May 2023	Announced results from the Phase II TRANSCEND FL trial evaluating Breyanzi in patients with relapsed or refractory follicular lymphoma (FL) and the Phase I TRANSCEND NHL trial evaluating Breyanzi in patients with relapsed or refractory B-cell non-Hodgkin lymphoma, including mantle cell lymphoma (MCL) showing both studies met the primary endpoint of overall response rate, with Breyanzi demonstrating statistically significant and meaningful responses in relapsed or refractory FL and MCL.

Camzyos	Obstructive HCM	June 2023	Announced EC approval of Camzyos for the treatment of symptomatic (New York Heart Association, class II-III) obstructive HCM in adult patients. The approval is based on results from the Phase III EXPLORER-HCM and VALOR-HCM trials.
		June 2023	Announced FDA approval of the sNDA to add positive data from the Phase III VALOR-HCM trial to the U.S. Prescribing Information for Camzyos. Data added to the label showed that treatment with Camzyos significantly reduced the composite endpoint of guideline-based eligibility for septal reduction therapy (SRT) at Week 16 or the decision to proceed with SRT to or at Week 16.

milvexian Thrombosis May 2023 Announced with our alliance partner Janssen Pharmaceuticals Inc., that all three prospective indications for milvexian, an investigational oral factor XIa inhibitor, have been granted Fast Track Designation by the FDA. The designations cover all three indication-seeking studies within the Phase III Librexia development program: Librexia STROKE, Librexia ACS and Librexia AF, which are all dosing patients.

48

Product Indication Date Developments

repotrectinib NSCLC May 2023 Announced that the FDA accepted the NDA for repotrectinib, a next-generation tyrosine kinase inhibitor for the treatment of patients with ROS1-positive locally advanced or metastatic NSCLC. The application is based on the Phase I/II TRIDENT-1 trial. The FDA granted the application Priority Review and assigned a PDUFA goal date of November 27, 2023.

Critical Accounting Policies

The preparation of financial statements requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenue and expenses. Our critical accounting policies are those that significantly impact our financial condition and results of operations and require the most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. Because of this uncertainty, actual results may vary from these estimates. For a discussion of our critical accounting policies, refer to "Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations" in our 2022 Form 10-K. There have been no material changes to our critical accounting policies during the six months ended June 30, 2023. For information regarding the impact of recently adopted accounting standards, refer to "Item 1. Financial Statements—Note 1. Basis of Presentation and Recently Issued Accounting Standards."

Special Note Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q (including documents incorporated by reference) and other written and oral statements we make from time to time contain certain "forward-looking" statements within the meaning of Section 27A of the Securities Act, and Section 21E of the Exchange Act. You can identify these forward-looking statements by the fact they use words such as "should," "could," "expect," "anticipate," "estimate," "target," "may," "project," "guidance," "intend," "plan," "believe," "will" and other words and terms of similar meaning and expression in connection with any discussion of future operating or financial performance. One can also identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. Such forward-looking statements are based on our current expectations and projections about our future financial results, goals, plans and objectives and involve inherent risks, assumptions and uncertainties, including internal or external factors that could delay, divert or change any of them in the next several years, and could cause our future financial results, goals, plans and objectives to differ materially from those expressed in, or implied by, the statements. These statements are likely to relate to, among other things, our goals, plans and objectives regarding our financial position, results of operations, cash flows, market position, product development, product approvals, sales efforts, expenses, performance or results of current and anticipated products, our business development strategy and in relation to our ability to realize the projected benefits of our acquisitions of Celgene, MyoKardia and Turning Point, the impact of the COVID-19 pandemic on our operations and the development and commercialization of our products, potential laws and regulations to lower drug prices, market actions taken by private and government payers to manage drug utilization and contain costs, the expiration of patents or data protection on certain products, including assumptions about our ability to retain marketing exclusivity of certain products and the outcome of contingencies such as legal proceedings and financial results. No forward-looking statement can be guaranteed. This Quarterly Report on Form 10-Q, our 2022 Form 10-K, particularly under the section "Item 1A. Risk Factors," and our other filings with the SEC, include additional information on the factors that we believe could cause actual results to differ materially from any forward-looking statement.

Although we believe that we have been prudent in our plans and assumptions, no assurance can be given that any goal or plan set forth in forward-looking statements can be achieved and readers are cautioned not to place undue reliance on such statements, which speak only as of the date made. Additional risks that we may currently deem immaterial or that are not presently known to us could also cause the forward-looking events discussed in this Quarterly Report on Form 10-Q not to occur. Except as otherwise required by applicable law, we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise after the date of this Quarterly Report on Form 10-Q.

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

For a discussion of our market risk, refer to "Item 7A. Quantitative and Qualitative Disclosures about Market Risk" in our 2022 Form 10-K.

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Item 4. CONTROLS AND PROCEDURES

Management carried out an evaluation, under the supervision and with the participation of its chief executive officer and chief financial officer, of the effectiveness of the design and operation of its disclosure controls and procedures, as defined in Exchange Act Rules 13a-15(e) and 15d-15(e), as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on this evaluation, our principal executive officer and principal financial officer concluded that as of June 30, 2023, such disclosure controls and procedures are effective.

There were no changes in the Company's internal control over financial reporting during the quarter ended June 30, 2023, that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

PART II—OTHER INFORMATION

Item 1. LEGAL PROCEEDINGS

Information pertaining to legal proceedings can be found in "Item 1. Financial Statements—Note 18. Legal Proceedings and Contingencies," to the interim consolidated financial statements, and is incorporated by reference herein.

Item 1A. RISK FACTORS

There have been no material changes from the risk factors disclosed in the Company's 2022 Form 10-K.

Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The following table summarizes the surrenders of our equity securities during the three months ended June 30, 2023: 

Period	Total Number of Shares Purchased(a)	Average Price Paid per Share(a)		Total Number of Shares Purchased as Part of Publicly Announced Programs(b)	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Programs(b)
Dollars in millions, except per share data
April 1 to 30, 2023	8,774	$	69.58	—	$	6,919
May 1 to 31, 2023	13,363,617	67.98		13,310,986	6,014
June 1 to 30, 2023	74,267	64.69		—	6,014
Three months ended June 30, 2023	13,446,658			13,310,986

(a)Includes shares repurchased as part of publicly announced programs and shares of common stock surrendered to the Company to satisfy tax withholding obligations in connection with the vesting of awards under our long-term incentive program.

(b)In May 2010, the Board of Directors authorized the repurchase of up to $3.0 billion of our common stock. Following this authorization, the Board subsequently approved additional authorizations, including most recently, in February 2020, January 2021 and December 2021, in the amount $5.0 billion, $2.0 billion and $15.0 billion, respectively, to the share repurchase authorization. The remaining share repurchase capacity under the program was approximately $6.0 billion as of June 30, 2023. Refer to "Item 8. Financial Statements and Supplementary Data—Note 17. Equity" in our 2022 Form 10-K for information on the share repurchase program.

Item 5. OTHER INFORMATION

Rule 10b5-1 Trading Arrangement

During the period covered by this Quarterly Report on Form 10-Q, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.

Frequency of Say on Pay

As previously reported in our Form 8-K filed on May 4, 2023, the 2023 Annual Meeting of Shareholders was held on May 2, 2023 (the “2023 Annual Meeting”). The shareholders voted on the matters set forth in such Form 8-K, including Item (b)(3) related to the say-on-frequency advisory vote. Based on consideration of the voting results set forth in Item (b)(3) in the Form 8-K, and as was recommended with respect to this proposal by our Board of Directors in the proxy statement for the 2023 Annual Meeting, the Company’s Board of Directors has determined that an advisory vote by the shareholders regarding named executive officer compensation as set forth in the proxy statement will be conducted on an annual basis. This disclosure is intended to satisfy the requirements of Item 5.07(d) of Form 8-K.

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Item 6. EXHIBITS

Exhibits (listed by number corresponding to the Exhibit Table of Item 601 in Regulation S-K).

Exhibit No.	Description
31a.	Section 302 Certification Letter.
31b.	Section 302 Certification Letter.
32a.	Section 906 Certification Letter.
32b.	Section 906 Certification Letter.
101.INS	XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH	XBRL Taxonomy Extension Schema Document.
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB	XBRL Taxonomy Extension Label Linkbase Document.
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

*    Indicates, in this Quarterly Report on Form 10-Q, brand names of products, which are registered trademarks not solely owned by the Company or its subsidiaries. Abilify is a trademark of Otsuka Pharmaceutical Co., Ltd.; Onglyza is a trademark of AstraZeneca AB; Gleevec is a trademark of Novartis AG; Keytruda is a trademark of Merck Sharp & Dohme Corp; Otezla is a trademark of Amgen Inc.; and Plavix is a trademark of Sanofi; Tecentriq is a trademark of Genentech, Inc. Brand names of products that are in all italicized letters, without an asterisk, are registered trademarks of BMS and/or one of its subsidiaries.

51

SUMMARY OF ABBREVIATED TERMS

Bristol-Myers Squibb Company and its consolidated subsidiaries may be referred to as Bristol Myers Squibb, BMS, the Company, we, our or us in this Quarterly Report on Form 10-Q, unless the context otherwise indicates. Throughout this Quarterly Report on Form 10-Q we have used terms which are defined below:

2022 Form 10-K	Annual Report on Form 10-K for the fiscal year ended December 31, 2022	MCL	mantle cell lymphoma
AML	acute myeloid leukemia	MDL	multi-district litigation
ANDA	Abbreviated New Drug Application	MDS	myelodysplastic syndromes
AstraZeneca	AstraZeneca PLC	MPM	malignant pleural mesothelioma
ASR	accelerated share repurchase	MyoKardia	MyoKardia, Inc.
BLA	Biologics License Application	NDA	New Drug Application
CAR-T	chimeric antigen receptor T-cell	NKT	natural killer T cells
CD38	cyclic ADP ribose hydrolase	NSCLC	non-small cell lung cancer
Celgene	Celgene Corporation	NVAF	non-valvular atrial fibrillation
Celgene and Other Acquisition Plans	Restructuring and integration plan implemented as a result of the acquisition of Celgene in 2019, MyoKardia in 2020 and Turning Point in 2022	Nimbus	Nimbus Therapeutics
CERCLA	U.S. Comprehensive Environmental Response, Compensation and Liability Act	OTC	over-the-counter
Cheplapharm	Cheplapharm Arzneimittel GmbH	Otsuka	Otsuka Pharmaceutical Co., Ltd.
CHMP	Committee for Medicinal Products for Human Use	PD-1	programmed cell death protein 1
CML	chronic myeloid leukemia	PD-L1	programmed death-ligand 1
CRC	colorectal carcinoma	Pfizer	Pfizer, Inc.
Dragonfly	Dragonfly Therapeutics, Inc.	PsA	psoriatic arthritis
EC	European Commission	Quarterly Report on Form 10-Q	Quarterly Report on Form 10-Q for the quarter ended June 30, 2023
EMA	European Medicines Agency	R&D	research and development
EPS	earnings per share	RA	rheumatoid arthritis
Exchange Act	the Securities Exchange Act of 1934	RBC	red blood cell
EU	European Union	RCC	renal cell carcinoma
FASB	Financial Accounting Standards Board	REMS	risk evaluation and mitigation strategy
FDA	U.S. Food and Drug Administration	Sanofi	Sanofi S.A.
FL	follicular lymphoma	sBLA	supplemental Biologics License Application
GAAP	generally accepted accounting principles	sNDA	supplemental New Drug Application
GTN	gross-to-net	SEC	U.S. Securities and Exchange Commission
HCC	hepatocellular carcinoma	SPC	Supplementary Protection Certificate
HCM	hypertrophic cardiomyopathy	SRT	septal reduction therapy
Immatics	Immatics Biotechnologies GmbH.	Takeda	Takeda Pharmaceutical Company Limited
IPRD	in-process research and development	Turning Point	Turning Point Therapeutics, Inc.
IRA	Inflation Reduction Act of 2022	UC	ulcerative colitis
IRS	Internal Revenue Service	UK	United Kingdom
JIA	juvenile idiopathic arthritis	U.S.	United States
Juno	Juno Therapeutics, Inc.	USPTO	U.S. Patent and Trademark Office
LAG-3	lymphocyte activation gene-3	VAT	value added tax
LOE	loss of exclusivity

52

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. 

		BRISTOL-MYERS SQUIBB COMPANY (REGISTRANT)
Date:	July 27, 2023	By:	/s/ Giovanni Caforio, M.D.
			Giovanni Caforio, M.D. Chairman of the Board and Chief Executive Officer
Date:	July 27, 2023	By:	/s/ David V. Elkins
			David V. Elkins Chief Financial Officer

53

EX-31.A

EXHIBIT 31a

CERTIFICATION BY THE CHIEF EXECUTIVE OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Giovanni Caforio, certify that:

1.I have reviewed Bristol-Myers Squibb Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2023;

2.Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3.Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;

b.designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent function):

a.all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting, which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Date: July 27, 2023

/s/ Giovanni Caforio, M.D.

Giovanni Caforio, M.D.

Chairman of the Board and Chief Executive Officer

EX-31.B

EXHIBIT 31b

CERTIFICATION BY THE CHIEF FINANCIAL OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, David V. Elkins, certify that:

1.I have reviewed Bristol-Myers Squibb Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2023;

2.Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3.Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;

b.designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent function):

a.all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting, which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Date: July 27, 2023

/s/ David V. Elkins

David V. Elkins

Chief Financial Officer

EX-32.A

EXHIBIT 32a

Certification by the Chief Executive Officer Pursuant to 18 U. S. C. Section 1350, as

Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Pursuant to 18 U.S.C. Section 1350, I, Giovanni Caforio, hereby certify that, to the best of my knowledge, Bristol-Myers Squibb Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 (the "Report"), as filed with the Securities and Exchange Commission on July 27, 2023, fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended, and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Bristol-Myers Squibb Company.

/s/ Giovanni Caforio, M.D.

Giovanni Caforio, M.D.

Chairman of the Board and Chief Executive Officer

July 27, 2023

This written statement is being furnished to the Securities and Exchange Commission as an exhibit to the Report. A signed original of this written statement required by Section 906 has been provided to Bristol-Myers Squibb Company and will be retained by Bristol-Myers Squibb Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.B

EXHIBIT 32b

Certification by the Chief Financial Officer Pursuant to 18 U. S. C. Section 1350, as

Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Pursuant to 18 U.S.C. Section 1350, I, David V. Elkins, hereby certify that, to the best of my knowledge, Bristol-Myers Squibb Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 (the "Report"), as filed with the Securities and Exchange Commission on July 27, 2023, fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended, and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Bristol-Myers Squibb Company.

/s/ David V. Elkins

David V. Elkins

Chief Financial Officer

July 27, 2023

This written statement is being furnished to the Securities and Exchange Commission as an exhibit to the Report. A signed original of this written statement required by Section 906 has been provided to Bristol-Myers Squibb Company and will be retained by Bristol-Myers Squibb Company and furnished to the Securities and Exchange Commission or its staff upon request.

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Cover Page - shares	6 Months Ended
	Jun. 30, 2023	Jul. 20, 2023
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Document Transition Report	false
Entity File Number	001-01136
Entity Registrant Name	BRISTOL-MYERS SQUIBB COMPANY
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	22-0790350
Entity Address, Address Line One	Route 206 & Province Line Road
Entity Address, City or Town	Princeton
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	08543
City Area Code	609
Local Phone Number	252-4621
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		2,089,102,921
Entity Central Index Key	0000014272
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Amendment Flag	false
Entity Small Business	false
Common Stock $0.10 Par Value
Title of 12(b) Security	Common Stock, $0.10 Par Value
Trading Symbol	BMY
Security Exchange Name	NYSE
1.000% Notes due 2025
Title of 12(b) Security	1.000% Notes due 2025
Trading Symbol	BMY25
Security Exchange Name	NYSE
1.750% Notes due 2035
Title of 12(b) Security	1.750% Notes due 2035
Trading Symbol	BMY35
Security Exchange Name	NYSE
Celgene Contingent Value Rights
Title of 12(b) Security	Celgene Contingent Value Rights
Trading Symbol	CELG RT
Security Exchange Name	NYSE

XML

CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Total revenues		$ 11,226	$ 11,887	$ 22,563	$ 23,535
Cost of products sold	[1]	2,876	2,720	5,442	5,191
Marketing, selling and administrative		1,934	1,787	3,696	3,618
Research and development		2,258	2,321	4,579	4,581
Acquired IPRD		158	400	233	733
Amortization of acquired intangible assets		2,257	2,417	4,513	4,834
Other (income)/expense, net		(116)	284	(529)	933
Total Expenses		9,367	9,929	17,934	19,890
Earnings before income taxes		1,859	1,958	4,629	3,645
Income tax (benefit)/provision		(218)	529	285	933
Net earnings		2,077	1,429	4,344	2,712
Noncontrolling interest		4	8	9	13
Net earnings attributable to BMS		$ 2,073	$ 1,421	$ 4,335	$ 2,699
Earnings per common share:
Basic (usd per share)		$ 0.99	$ 0.67	$ 2.07	$ 1.26
Diluted (usd per share)		$ 0.99	$ 0.66	$ 2.06	$ 1.25
Net product sales
Total revenues		$ 10,917	$ 11,485	$ 21,965	$ 22,793
Alliance and other revenues
Total revenues		$ 309	$ 402	$ 598	$ 742

[1] Excludes amortization of acquired intangible assets

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
Net earnings	$ 2,077	$ 1,429	$ 4,344	$ 2,712
Other comprehensive income, net of taxes and reclassifications to earnings:
Derivatives qualifying as cash flow hedges	3	301	(121)	332
Pension and postretirement benefits	(11)	25	(11)	46
Marketable debt securities	0	(1)	0	(2)
Foreign currency translation	(11)	(88)	26	(100)
Total Other comprehensive (loss)/income	(19)	237	(106)	276
Comprehensive income	2,058	1,666	4,238	2,988
Comprehensive income attributable to noncontrolling interest	4	8	9	13
Comprehensive income attributable to BMS	$ 2,054	$ 1,658	$ 4,229	$ 2,975

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CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 8,372	$ 9,123
Marketable debt securities	358	130
Receivables	10,112	9,886
Inventories	2,364	2,339
Other current assets	6,868	5,795
Total Current assets	28,074	27,273
Property, plant and equipment	6,355	6,255
Goodwill	21,163	21,149
Other intangible assets	31,303	35,859
Deferred income taxes	1,572	1,344
Other non-current assets	5,022	4,940
Total Assets	93,489	96,820
Current liabilities:
Short-term debt obligations	3,020	4,264
Accounts payable	3,069	3,040
Other current liabilities	14,061	14,586
Total Current liabilities	20,150	21,890
Deferred income taxes	751	2,166
Long-term debt	34,656	35,056
Other non-current liabilities	5,902	6,590
Total Liabilities	61,459	65,702
Commitments and Contingencies
BMS Shareholders’ equity:
Preferred stock	0	0
Common stock	292	292
Capital in excess of par value of stock	45,299	45,165
Accumulated other comprehensive loss	(1,387)	(1,281)
Retained earnings	27,449	25,503
Less cost of treasury stock	(39,680)	(38,618)
Total BMS Shareholders’ equity	31,973	31,061
Noncontrolling interest	57	57
Total Equity	32,030	31,118
Total Liabilities and Equity	$ 93,489	$ 96,820

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash Flows From Operating Activities:
Net earnings	$ 4,344	$ 2,712
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization, net	4,861	5,167
Deferred income taxes	(1,634)	(1,469)
Stock-based compensation	259	223
Impairment charges	67	83
Divestiture gains and royalties	(417)	(612)
Acquired IPRD	233	733
Equity investment losses	213	952
Other adjustments	(9)	219
Changes in operating assets and liabilities:
Receivables	(240)	117
Inventories	(298)	(12)
Accounts payable	22	4
Rebates and discounts	(418)	(410)
Income taxes payable	(1,235)	(370)
Other	(891)	(1,264)
Net cash provided by operating activities	4,857	6,073
Cash Flows From Investing Activities:
Sale and maturities of marketable debt securities	327	3,788
Purchase of marketable debt securities	(555)	(3,292)
Proceeds from sales of equity investment securities	67	150
Capital expenditures	(537)	(525)
Divestiture and other proceeds	421	594
Acquisition and other payments, net of cash acquired	(262)	(909)
Net cash used in investing activities	(539)	(194)
Cash Flows From Financing Activities:
Short-term debt obligations, net	243	130
Issuance of long-term debt	0	5,926
Repayment of long-term debt	(1,879)	(8,646)
Repurchase of common stock	(1,155)	(5,000)
Dividends	(2,393)	(2,335)
Stock option proceeds and other, net	(39)	752
Net cash used in financing activities	(5,223)	(9,173)
Effect of exchange rates on cash, cash equivalents and restricted cash	5	(62)
Decrease in cash, cash equivalents and restricted cash	(900)	(3,356)
Cash, cash equivalents and restricted cash at beginning of period	9,325	14,316
Cash, cash equivalents and restricted cash at end of period	$ 8,425	$ 10,960

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BASIS OF PRESENTATION AND RECENTLY ISSUED ACCOUNTING STANDARDS

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

Basis of Presentation and Recently Issued Accounting Standards

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 June 30, 2023 and December 31, 2022, the results of operations for the three and six months ended June 30, 2023 and 2022, and cash flows for the six months ended June 30, 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.

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.

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REVENUE

6 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

Revenue

REVENUE

The following table summarizes the disaggregation of revenue by nature:

	Three Months Ended June 30,				Six Months Ended June 30,
Dollars in millions	2023		2022		2023		2022
Net product sales	$	10,917	$	11,485	$	21,965	$	22,793
Alliance revenues	179		199		323		387
Other revenues	130		203		275		355
Total Revenues	$	11,226	$	11,887	$	22,563	$	23,535

The following table summarizes GTN adjustments:

	Three Months Ended June 30,				Six Months Ended June 30,
Dollars in millions	2023		2022		2023		2022
Gross product sales	$	18,111	$	17,299	$	35,399	$	33,949
GTN adjustments (a)
Charge-backs and cash discounts	(2,279)		(1,750)		(4,370)		(3,513)
Medicaid and Medicare rebates	(3,143)		(2,624)		(5,625)		(4,708)
Other rebates, returns, discounts and adjustments	(1,772)		(1,440)		(3,439)		(2,935)
Total GTN adjustments	(7,194)		(5,814)		(13,434)		(11,156)
Net product sales	$	10,917	$	11,485	$	21,965	$	22,793

(a)    Includes adjustments for provisions for product sales made in prior periods resulting from changes in estimates of $11 million and $98 million for the three and six months ended June 30, 2023 and $123 million and $197 million for the three and six months ended June 30, 2022, respectively.

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	2023		2022		2023		2022
In-Line Products
Eliquis	$	3,204	$	3,235	6,627		6,446
Opdivo	2,145		2,063		4,347		3,986
Pomalyst/Imnovid	847		908		1,679		1,734
Orencia	927		876		1,691		1,668
Sprycel	458		544		887		1,027
Yervoy	585		525		1,093		1,040
Mature and other products	472		512		939		1,049
Total In-Line Products	8,638		8,663		17,263		16,950
New Product Portfolio
Reblozyl	234		172		440		328
Abecma	132		89		279		156
Opdualag	154		58		271		64
Zeposia	100		66		178		102
Breyanzi	100		39		171		83
Onureg	44		32		78		55
Inrebic	27		23		52		41
Camzyos	46		3		75		3
Sotyktu	25		—		41		—
Total New Product Portfolio	862		482		1,585		832
Total In-Line Products and New Product Portfolio	9,500		9,145		18,848		17,782
Recent LOE Products(a)
Revlimid	1,468		2,501		3,218		5,298
Abraxane	258		241		497		455
Total Recent LOE Products	1,726		2,742		3,715		5,753
Total revenues	$	11,226	$	11,887	$	22,563	$	23,535
United States	$	7,891	$	8,268	$	15,924	$	15,962
International	3,160		3,427		6,309		7,154
Other(b)	175		192		330		419
Total revenues	$	11,226	$	11,887	$	22,563	$	23,535

(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 $75 million and $241 million for the three and six months ended June 30, 2023 and $184 million and $331 million for the three and six months ended June 30, 2022, respectively, consisting primarily of royalties for out-licensing arrangements and revised estimates for GTN adjustments related to prior period sales.

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ALLIANCES

6 Months Ended

Jun. 30, 2023

ALLIANCES [Abstract]

Alliances

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.

	Three Months Ended June 30,				Six Months Ended June 30,
Dollars in millions	2023		2022		2023		2022
Revenues from alliances
Net product sales	$	3,320	$	3,273	6,852		$	6,512
Alliance revenues	179		199		323		387
Total alliance revenues	$	3,499	$	3,472	7,175		$	6,899
To/(from) alliance partners
Cost of products sold	$	1,614	$	1,572	$	3,320	$	3,128
Marketing, selling and administrative	(64)		(53)		(138)		(107)
Research and development	36		12		80		34
Acquired IPRD	55		100		55		100
Other (income)/expense, net	(15)		(11)		(27)		(23)

Dollars in millions	June 30, 2023		December 31, 2022
Selected alliance balance sheet information
Receivables – from alliance partners	$	287	$	317
Accounts payable – to alliance partners	1,613		1,249
Deferred income – from alliances(a)	300		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. Significant developments and updates related to alliances during the six months ended June 30, 2023 and 2022 are set forth below.

BridgeBio

During the second quarter of 2022, BMS and BridgeBio commenced a collaboration to develop and commercialize BBP-398, a SHP2 inhibitor, in oncology. The transaction included an upfront payment of $90 million expensed to Acquired IPRD during the second quarter of 2022. BridgeBio is eligible to receive contingent development, regulatory and sales-based milestones up to $815 million, as well as royalties on global net sales, excluding certain markets. BridgeBio is responsible for funding and completing ongoing BBP-398 Phase I monotherapy and combination therapy trials. BMS will lead and fund all other development and commercial activities. BridgeBio has an option to co-develop BBP-398 and receive higher royalties in the U.S.

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DIVESTITURES, LICENSING AND OTHER ARRANGEMENTS

6 Months Ended

Jun. 30, 2023

Acquisitions, Divestitures and Other Arrangements [Abstract]

DIVESTITURES, LICENSING AND OTHER ARRANGEMENTS

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				Divestiture (Gains)/Losses				Royalty Income
Dollars in millions	2023		2022		2023		2022		2023		2022
Diabetes business - royalties	$	185	$	185	$	—	$	—	$	(218)	$	(220)
Mature products and other	3		3		—		—		—		(1)
Total	$	188	$	188	$	—	$	—	$	(218)	$	(221)
	Six Months Ended June 30,
	Net Proceeds				Divestiture (Gains)/Losses				Royalty Income
Dollars in Millions	2023		2022		2023		2022		2023		2022
Diabetes business - royalties	$	401	$	357	$	—	$	—	$	(406)	$	(390)
Mature products and other (a)	7		228		—		(211)		—		(2)
Total	$	408	$	585	$	—	$	(211)	$	(406)	$	(392)

(a)    Includes cash proceeds of $221 million and a divestiture gain of $211 million related to the sale of several mature products to Cheplapharm in the first quarter of 2022.

Mature Products and Other

Manufacturing Operations

During the second quarter of 2022, BMS agreed to sell its manufacturing facility in Syracuse, New York to LOTTE Corporation and accounted for the business as held-for-sale resulting in a $63 million impairment charge recorded to Cost of products sold. Assets and liabilities reclassified to held-for-sale were included within Other current assets and Other current liabilities and were $172 million and $20 million, respectively, as of December 31, 2022. In January 2023, BMS completed the sale resulting in cash proceeds of $159 million, which was received in December 2022.

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 June 30,				Six Months Ended June 30,
Dollars in millions	2023		2022		2023		2022
Keytruda* royalties	$	(284)	$	(243)	$	(563)	$	(464)
Tecentriq* royalties	(24)		(19)		(54)		(44)
Contingent milestone income	(5)		(5)		(36)		(46)
Amortization of deferred income	(15)		(11)		(27)		(23)
Other royalties and licensing income	(12)		(9)		(23)		(16)
Total	$	(340)	$	(287)	$	(703)	$	(593)

Keytruda* Patent License Agreement

In 2017, BMS and Ono entered a global patent license agreement with Merck related to Merck's PD-1 antibody Keytruda*. In accordance with the agreement, Merck is obligated to pay ongoing royalties on global sales of Keytruda* of 6.5% from January 1, 2017 through December 31, 2023, and 2.5% from January 1, 2024 through December 31, 2026. The companies also granted certain rights to each other under their respective patent portfolios pertaining to PD-1. Payments and royalties are shared between BMS and Ono on a 75/25 percent allocation, respectively after adjusting for each party's legal fees.

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. 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. During the first quarter of 2023, BMS notified Dragonfly of its termination of the global exclusive license related 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 ("Nimbus") 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 related to its TYK2 inhibitor. In February 2023, Takeda acquired 100% ownership of Nimbus' 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 was included in Other (income)/expense during the first quarter of 2023.

Royalty Extinguishment

During the second quarter of 2022, BMS amended the terms of a license arrangement and paid a third party $295 million, which was expensed to Acquired IPRD, to extinguish a future royalty obligation related to mavacamten prior to its FDA approval in April 2022.

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OTHER (INCOME)/EXPENSE, NET

6 Months Ended

Jun. 30, 2023

Other Nonoperating Income (Expense) [Abstract]

Other (Income)/Expense, Net

OTHER (INCOME)/EXPENSE, NET

	Three Months Ended June 30,				Six Months Ended June 30,
Dollars in millions	2023		2022		2023		2022
Interest expense (Note 10)	$	282	$	313	$	570	$	639
Royalty and licensing income (Note 4)	(340)		(287)		(703)		(593)
Royalty income - divestiture (Note 4)	(218)		(221)		(406)		(392)
Equity investment losses (Note 9)	58		308		213		952
Integration expenses (Note 6)	59		124		126		229
(Gain)/Loss on debt redemption (Note 10)	—		(9)		—		266
Divestiture gains (Note 4)	—		—		—		(211)
Litigation and other settlements (a)	(7)		25		(332)		(12)
Investment income	(95)		(27)		(197)		(37)
Provision for restructuring (Note 6)	113		20		180		43
Other	32		38		20		49
Other (income)/expense, net	$	(116)	$	284	$	(529)	$	933

(a)    Includes $400 million of income recorded in connection with Nimbus' TYK2 program change of control provision during the first quarter of 2023. Refer to "—Note 4. Divestitures, Licensing and Other Arrangements" for further information.

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RESTRUCTURING

6 Months Ended

Jun. 30, 2023

Restructuring Charges [Abstract]

Restructuring

RESTRUCTURING

2023 Restructuring Plan

In 2023, BMS commenced a restructuring plan to accelerate the delivery of medicines to patients by evolving and streamlining its enterprise operating model in key areas, such as R&D, manufacturing, commercial and other functions, to ensure its operating model supports and is appropriately aligned with the Company’s strategy to invest in key priorities. These changes primarily include (i) transforming R&D operations to accelerate pipeline delivery (ii) enhancing our commercial operating model, and (iii) establishing a more responsive manufacturing network and expansion of cell therapy manufacturing capabilities. Charges of approximately $1.0 billion are expected to be incurred through 2025, consisting primarily of employee termination costs and to a lesser extent site exit costs, including impairment and accelerated depreciation of property, plant and equipment.

Celgene and Other Acquisition Plans

Restructuring and integration plans were initiated to realize expected cost synergies resulting from cost savings and avoidance from the acquisition of Celgene (2019), MyoKardia (2020) and Turning Point (2022). As part of these plans, the Company expects to incur charges of approximately $3.8 billion. Cumulative charges of approximately $3.4 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 related to the acquisition of Celgene are primarily related to IT system integration which are expected to be incurred through 2024.

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	2023		2022		2023		2022
2023 Restructuring Plan	$	170	$	—	$	231	$	—
Celgene and Other Acquisition Plans	64		148		138		278
Total charges	$	234	$	148	$	369	$	278
Employee termination costs	$	109	$	19	$	174	$	41
Other termination costs	4		1		6		2
Provision for restructuring	113		20		180		43
Integration expenses	59		124		126		229
Accelerated depreciation	12		4		13		6
Asset impairments	50		—		50		—
Other shutdown costs	—		—		—		—
Total charges	$	234	$	148	$	369	$	278
Cost of products sold	$	36	$	—	$	37	$	—
Marketing, selling and administrative	20		4		20		6
Research and Development	6		—		6		—
Other (income)/expense, net	172		144		306		272
Total charges	$	234	$	148	$	369	$	278

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

	Six Months Ended June 30,
Dollars in millions	2023		2022
Beginning balance	$	47	$	101
Provision for restructuring(a)	180		43
Foreign currency translation and other	1		(6)
Payments	(48)		(67)
Ending balance	$	180	$	71

(a)    Includes a reduction of the liability resulting from changes in estimates of $4 million and $8 million for the six months ended June 30, 2023 and 2022, respectively.

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INCOME TAXES

6 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

	Three Months Ended June 30,						Six Months Ended June 30,
Dollars in millions	2023			2022			2023			2022
Earnings before income taxes	$	1,859		$	1,958		$	4,629		$	3,645
Income tax (benefit)/provision	(218)			529			285			933
Effective tax rate	(11.7)		%	27.0		%	6.2		%	25.6		%

Provision for 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 effective tax rate during the three and six months ended June 30, 2023 was primarily impacted by a $656 million deferred income tax benefit following the receipt of a non-U.S. tax ruling regarding the deductibility of a statutory impairment of subsidiary investments. In addition, the effective tax rate during the six months of 2023 was impacted by 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 the 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 $3.1 billion and $2.7 billion for the six months ended June 30, 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 June 30, 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.

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EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Earnings Per Share

EARNINGS PER SHARE

	Three Months Ended June 30,				Six Months Ended June 30,
Dollars in millions, except per share data	2023		2022		2023		2022
Net earnings attributable to BMS	$	2,073	$	1,421	$	4,335	$	2,699
Weighted-average common shares outstanding – basic	2,093		2,133		2,096		2,140
Incremental shares attributable to share-based compensation plans	9		16		11		17
Weighted-average common shares outstanding – diluted	2,102		2,149		2,107		2,157
Earnings per common share
Basic	$	0.99	$	0.67	$	2.07	$	1.26
Diluted	$	0.99	0.66		$	2.06	1.25

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 and six months ended June 30, 2023 and 2022.

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FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Financial Instruments and Fair Value Measurements

FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS

Financial assets and liabilities measured at fair value on a recurring basis are summarized below:

	June 30, 2023						December 31, 2022
Dollars in millions	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Cash and cash equivalents
Money market and other securities	$	—	$	6,644	$	—	$	—	$	7,770	$	—
Marketable debt securities
Certificates of deposit	—		358		—		—		32		—
Commercial paper	—		—		—		—		98		—
Derivative assets	—		357		—		—		305		—
Equity investments	336		512		—		424		680		—
Derivative liabilities	—		180		—		—		213		—
Contingent consideration liability
Contingent value rights	5		—		—		5		—		—
Other acquisition related contingent consideration	—		—		9		—		—		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 Level 2 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 December 31, 2022 and the restrictions expired in April 2023.

Marketable Debt Securities

The following table summarizes marketable debt securities:

	June 30, 2023								December 31, 2022
Dollars in millions	Amortized Cost		Gross Unrealized						Amortized Cost		Gross Unrealized
			Gains		Losses		Fair Value				Gains		Losses		Fair Value
Certificates of deposit	$	358	$	—	$	—	$	358	$	32	$	—	$	—	$	32
Commercial paper	—		—		—		—		98		—		—		98
Total marketable debt securities(a)	$	358	$	—	$	—	$	358	$	130	$	—	$	—	$	130

(a)    All marketable debt securities mature within one year as of June 30, 2023, and December 31, 2022.

Equity Investments

The following summarizes the carrying amount of equity investments:

Dollars in millions	June 30, 2023		December 31, 2022
Equity investments with readily determinable fair values	$	848	$	1,104
Equity investments without readily determinable fair values	623		537
Limited partnerships and other equity method investments	520		546
Total equity investments	$	1,991	$	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 June 30,		Six Months Ended June 30,
Dollars in millions	2023	2022	2023	2022
Equity investments with readily determinable fair values
Net loss recognized	47	254	188	852
Less: net gain recognized on investments sold	(11)	(16)	(12)	(16)
Net unrealized loss recognized on investments still held	58	270	200	868
Equity investments without readily determinable fair values
Upward adjustments	—	—	(6)	(6)
Impairments and downward adjustments	—	—	—	2
Equity in net loss of affiliates	11	54	31	104
Total equity investment losses	58	308	213	952

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 June 30, 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 sheets. Changes in fair value for these foreign exchange contracts, which are designated as cash flow hedges, are 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 June 30, 2023, assuming market rates remain constant through contract maturities, we expect to reclassify pre-tax gains of $111 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 $5.1 billion for the euro contracts and $1.2 billion for Japanese yen contracts as of June 30, 2023.

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 June 30, 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 $1.7 billion as of June 30, 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 in the consolidated balance sheets. The notional amount of outstanding cross-currency swap contracts was primarily attributed to the Japanese yen of $650 million and euro of $780 million as of June 30, 2023.

During the first quarter of 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 and six months ended June 30, 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. 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 in the consolidated balance sheets. 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:

	June 30, 2023								December 31, 2022
	Asset(a)				Liability(b)				Asset(a)				Liability(b)
Dollars in millions	Notional		Fair Value		Notional		Fair Value		Notional		Fair Value		Notional		Fair Value
Designated as cash flow hedges
Foreign currency exchange contracts	$	5,831	$	243	$	1,656	$	(79)	$	5,771	$	271	$	2,281	$	(80)
Cross-currency swap contracts	1,210		20		—		—		—		—		584		(7)
Designated as net investment hedges
Cross-currency swap contracts	561		13		1,167		(48)		72		1		1,157		(78)
Designated as fair value hedges
Interest rate swap contracts	—		—		3,755		(23)		—		—		255		(18)
Not designated as hedges
Foreign currency exchange contracts	2,370		66		2,334		(30)		1,564		33		1,703		(19)
Total return swap contracts (c)	374		15		—		—		—		—		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 June 30, 2023				Six Months Ended June 30, 2023
Dollars in millions	Cost of products sold		Other (income)/expense, net		Cost of products sold		Other (income)/expense, net
Foreign currency exchange contracts	$	(90)	$	(44)	$	(210)	$	(60)
Cross-currency swap contracts	—		(5)		—		(28)
Interest rate swap contracts	—		(4)		—		(7)
	Three Months Ended June 30, 2022				Six Months Ended June 30, 2022
Dollars in millions	Cost of products sold		Other (income)/expense, net		Cost of products sold		Other (income)/expense, net
Foreign currency exchange contracts	$	(131)	$	(18)	$	(213)	$	(75)
Cross-currency swap contracts	—		(4)		—		(8)
Interest rate swap contracts	—		(7)		—		(18)

The following table summarizes the effect of derivative and non-derivative instruments designated as hedges in Other comprehensive income:

	Three Months Ended June 30,				Six Months Ended June 30,
Dollars in millions	2023		2022		2023		2022
Derivatives designated as cash flow hedges
Foreign exchange contracts gain/(loss):
Recognized in Other comprehensive income	$	60	$	481	$	53	$	601
Reclassified to Cost of products sold	(90)		(131)		(210)		(213)
Cross-currency swap contracts gain/(loss):
Recognized in Other comprehensive income	34		—		28		—
Reclassified to Other (income)/expense, net	4		—		(9)		—
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 income	34		51		35		64
Non-derivatives designated as net investment hedges
Non U.S. dollar borrowings gain/(loss):
Recognized in Other comprehensive income	—		68		(10)		83

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FINANCING ARRANGEMENTS

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

FINANCING ARRANGEMENTS

FINANCING ARRANGEMENTS

Short-term debt obligations include:

Dollars in millions	June 30, 2023		December 31, 2022
Non-U.S. short-term debt obligations	$	125	$	176
Current portion of Long-term debt	2,414		3,897
Other	481		191
Total	$	3,020	$	4,264

Long-term debt and the current portion of Long-term debt include:

Dollars in millions	June 30, 2023		December 31, 2022
Principal value	$	36,379	$	38,234
Adjustments to principal value:
Fair value of interest rate swap contracts	(23)		(18)
Unamortized basis adjustment from swap terminations	88		97
Unamortized bond discounts and issuance costs	(271)		(284)
Unamortized purchase price adjustments of Celgene debt	897		924
Total	$	37,070	$	38,953
Current portion of Long-term debt	$	2,414	$	3,897
Long-term debt	34,656		35,056
Total	$	37,070	$	38,953

The fair value of Long-term debt was $33.5 billion as of June 30, 2023 and $34.9 billion as of December 31, 2022 valued using Level 2 inputs, which are based upon the quoted market prices for the same or similar debt instruments. The fair value of Short-term debt obligations approximates the carrying value due to the short maturities of the debt instruments.

During the six months ended June 30, 2023, $1.9 billion of debt matured and was repaid including $750 million 2.750% Notes, $890 million 3.250% Notes and $239 million 7.150% Notes.

During the six months ended June 30, 2022, $2.0 billion of debt matured and was repaid including $1.5 billion 2.600% Notes and $500 million Floating Rate Notes.

During the six months ended June 30, 2022, BMS issued an aggregate principal amount of $6.0 billion of debt with net proceeds of $5.9 billion. The notes rank equally in right of payment with all of BMS's existing and future senior unsecured indebtedness and are redeemable at any time, in whole, or in part, at varying specified redemption prices plus accrued and unpaid interest. In addition, BMS purchased an aggregate principal amount of $6.0 billion of certain of its debt securities for $6.6 billion of cash in tender offers and "make-whole" redemptions. In connection with these transactions, a $266 million net loss on debt redemption was recognized based on the carrying value of the debt and included in Other (income)/expense, net.

Interest payments were $639 million and $720 million for the six months ended June 30, 2023 and 2022, respectively, net of amounts related to interest rate swap contracts.

Credit Facilities

As of June 30, 2023, BMS had a five-year $5.0 billion revolving credit facility expiring in January 2028, which is extendable annually by one year with the consent of the lenders. This facility provides for customary terms and conditions with no financial covenants and may be used to provide backup liquidity for our commercial paper borrowings. No borrowings were outstanding under the revolving credit facility as of June 30, 2023 and December 31, 2022.

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RECEIVABLES

6 Months Ended

Jun. 30, 2023

Accounts Receivable, after Allowance for Credit Loss [Abstract]

Receivables

RECEIVABLES

Dollars in millions	June 30, 2023		December 31, 2022
Trade receivables	$	8,827	$	8,848
Less: charge-backs and cash discounts	(676)		(675)
Less: allowance for expected credit loss	(26)		(22)
Net trade receivables	8,125		8,151
Alliance, royalties, VAT and other	1,987		1,735
Receivables	$	10,112	$	9,886

Non-U.S. receivables sold on a nonrecourse basis were $503 million and $674 million for the six months ended June 30, 2023 and 2022, respectively. Receivables from the three largest customers in the U.S. represented 70% and 66% of total trade receivables as of June 30, 2023 and December 31, 2022, respectively.

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INVENTORIES

6 Months Ended

Jun. 30, 2023

Inventory, Net [Abstract]

Inventories

INVENTORIES

Dollars in millions	June 30, 2023		December 31, 2022
Finished goods	$	594	$	509
Work in process	2,039		1,850
Raw and packaging materials	451		464
Total inventories	$	3,084	$	2,823
Inventories	$	2,364	$	2,339
Other non-current assets	720		484

The fair value adjustment related to the Celgene acquisition was $84 million as of December 31, 2022, which was fully amortized as of June 30, 2023.

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PROPERTY, PLANT AND EQUIPMENT

6 Months Ended

Jun. 30, 2023

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

PROPERTY, PLANT AND EQUIPMENT

Dollars in millions	June 30, 2023		December 31, 2022
Land	$	162	$	162
Buildings	6,039		5,920
Machinery, equipment and fixtures	3,434		3,284
Construction in progress	1,197		1,053
Gross property, plant and equipment	10,832		10,419
Less accumulated depreciation	(4,477)		(4,164)
Property, plant and equipment	$	6,355	$	6,255

Depreciation expense was $151 million and $297 million for the three and six months ended June 30, 2023 and $141 million and $286 million for the three and six months ended June 30, 2022, respectively.

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GOODWILL AND OTHER INTANGIBLE ASSETS

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill

The changes in the carrying amounts in Goodwill were as follows:

Dollars in millions
Balance at December 31, 2022	$	21,149
Currency translation and other adjustments	14
Balance at June 30, 2023	$	21,163

Other Intangible Assets

Other intangible assets consisted of the following:

	Estimated Useful Lives	June 30, 2023						December 31, 2022
Dollars in Millions		Gross carrying amounts		Accumulated amortization		Other intangible assets, net		Gross carrying amounts		Accumulated amortization		Other intangible assets, net
Licenses	5 – 15 years	$	400	$	(144)	$	256	$	400	$	(128)	$	272
Acquired marketed product rights	3 – 15 years	59,577		(35,545)		24,032		60,477		(31,949)		28,528
Capitalized software	3 – 10 years	1,602		(1,127)		475		1,555		(1,056)		499
IPRD		6,540		—		6,540		6,560		—		6,560
Total		$	68,119	$	(36,816)	$	31,303	$	68,992	$	(33,133)	$	35,859

Amortization expense of Other intangible assets was $2.3 billion and $4.6 billion during the three and six months ended June 30, 2023 and $2.4 billion and $4.9 million for the three and six months ended June 30, 2022, respectively.

IPRD impairment charges were $20 million during the six months ended June 30, 2023 and $40 million during the six months ended June 30, 2022. These IPRD impairments were included in Research and development expense and represented full write-downs.

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SUPPLEMENTAL FINANCIAL INFORMATION

6 Months Ended

Jun. 30, 2023

Supplemental Financial Information [Abstract]

Supplemental Financial Information

SUPPLEMENTAL FINANCIAL INFORMATION

Dollars in millions	June 30, 2023		December 31, 2022
Income taxes	$	4,542	$	3,547
Research and development	736		579
Contract assets	405		504
Restricted cash(a)	53		148
Other	1,132		1,017
Other current assets	$	6,868	$	5,795

Dollars in millions	June 30, 2023		December 31, 2022
Equity investments	$	1,991	$	2,187
Inventories	720		484
Operating leases	1,274		1,220
Pension and postretirement	298		285
Research and development	470		496
Restricted cash(a)	—		54
Other	269		214
Other non-current assets	$	5,022	$	4,940

(a)    Restricted cash primarily consists of funds restricted for annual Company contributions to the defined contribution plan in the U.S. and escrow for litigation settlements. Cash is restricted when withdrawal or general use is contractually or legally restricted. As of June 30, 2022 restricted cash was $210 million.

Dollars in millions	June 30, 2023		December 31, 2022
Rebates and discounts	$	6,313	$	6,702
Income taxes	1,526		942
Employee compensation and benefits	770		1,425
Research and development	1,339		1,359
Dividends	1,191		1,196
Interest	304		321
Royalties	417		431
Operating leases	168		136
Other	2,033		2,074
Other current liabilities	$	14,061	$	14,586

Dollars in millions	June 30, 2023		December 31, 2022
Income taxes	$	3,166	$	3,992
Pension and postretirement	398		402
Operating leases	1,342		1,261
Deferred income	305		283
Deferred compensation	398		349
Other	293		303
Other non-current liabilities	$	5,902	$	6,590

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EQUITY

6 Months Ended

Jun. 30, 2023

Equity [Abstract]

Equity

EQUITY

The following table summarizes changes in equity for the six months ended June 30, 2023:

	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, 2022	2,923	$	292	$	45,165	$	(1,281)	$	25,503	825	$	(38,618)	$	57
Net earnings	—	—		—		—		2,262		—	—		5
Other comprehensive loss	—	—		—		(87)		—		—	—		—
Cash dividends declared $0.57 per share	—	—		—		—		(1,197)		—	—		—
Share repurchase program	—	—		—		—		—		4	(250)		—
Stock compensation	—	—		(25)		—		—		(6)	60		—
Balance at March 31, 2023	2,923	$	292	$	45,140	$	(1,368)	$	26,568	823	$	(38,808)	$	62
Net earnings	—	—		—		—		2,073		—	—		4
Other comprehensive loss	—	—		—		(19)		—		—	—		—
Cash dividends declared $0.57 per share	—	—		—		—		(1,192)		—	—		—
Share repurchase program	—	—		—		—		—		13	(911)		—
Stock compensation	—	—		159		—		—		(2)	39		—
Distributions	—	—		—		—		—		—	—		(9)
Balance at June 30, 2023	2,923	292		45,299		(1,387)		27,449		834	(39,680)		57

The following table summarizes changes in equity for the six months ended June 30, 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 $0.54 per share	—	—		—		—		(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
Net earnings	—	—		—		—		1,421		—	—		8
Other comprehensive income	—	—		—		237		—		—	—		—
Cash dividends declared $0.54 per share	—	—		—		—		(1,152)		—	—		—
Stock repurchase program	—	—		300		—		—		2	(300)		—
Stock compensation	—	—		319		—		—		(8)	195		—
Distributions	—	—		—		—		—		—	—		(12)
Balance at June 30, 2022	2,923	292		44,375		(992)		24,217		788	(35,292)		61

BMS repurchased 17 million shares of its common stock for $1.2 billion during the six months ended June 30, 2023. The remaining share repurchase capacity under the BMS share repurchase program was approximately $6.0 billion as of June 30, 2023.

During the first quarter of 2022, BMS entered into accelerated share repurchase ("ASR") agreements to repurchase an aggregate amount of $5.0 billion of the Company's common stock. The ASR agreements were funded with cash on-hand and 65 million shares of common stock (85% of the $5.0 billion aggregate repurchase price) were received by BMS and included in treasury stock. During the second quarter of 2022, the first tranche of the ASR was settled and approximately 2 million shares of common stock were received by BMS and transferred to treasury stock.

The following table summarizes the changes in Other comprehensive income by component:

	Three Months Ended June 30, 2023						Six Months Ended June 30, 2023
Dollars in millions	Pretax		Tax		After Tax		Pretax		Tax		After Tax
Derivatives qualifying as cash flow hedges
Recognized in Other comprehensive income	$	94	$	(16)	$	78	$	81	$	(13)	$	68
Reclassified to net earnings(a)	(86)		11		(75)		(219)		30		(189)
Derivatives qualifying as cash flow hedges	8		(5)		3		(138)		17		(121)
Pension and postretirement benefits
Actuarial (losses)/gains	(13)		2		(11)		(13)		2		(11)
Foreign currency translation	(4)		(7)		(11)		31		(5)		26
Other comprehensive income	$	(9)	$	(10)	$	(19)	$	(120)	$	14	$	(106)

	Three Months Ended June 30, 2022						Six Months Ended June 30, 2022
Dollars in millions	Pretax		Tax		After Tax		Pretax		Tax		After Tax
Derivatives qualifying as cash flow hedges
Recognized in Other comprehensive income	$	481	$	(65)	$	416	$	601	$	(81)	$	520
Reclassified to net earnings(a)	(131)		16		(115)		(216)		28		(188)
Derivatives qualifying as cash flow hedges	350		(49)		301		385		(53)		332
Pension and postretirement benefits
Actuarial gains/(losses)	20		(3)		17		40		(7)		33
Amortization(b)	6		(1)		5		12		(3)		9
Settlements(b)	4		(1)		3		5		(1)		4
Pension and postretirement benefits	30		(5)		25		57		(11)		46
Marketable debt securities
Unrealized (losses)/gains	—		(1)		(1)		(2)		—		(2)
Foreign currency translation	(64)		(24)		(88)		(70)		(30)		(100)
Other comprehensive income	$	316	$	(79)	$	237	$	370	$	(94)	$	276

(a)Included in Cost of products sold and Other (income)/expense, net. Refer to "—Note 9. Financial Instruments and Fair Value Measurements" for further information.

(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	June 30, 2023		December 31, 2022
Derivatives qualifying as cash flow hedges	$	111	$	232
Pension and postretirement benefits	(634)		(623)
Foreign currency translation(a)	(864)		(890)
Accumulated other comprehensive loss	$	(1,387)	$	(1,281)

(a)Includes net investment hedge gains of $144 million and $125 million as of June 30, 2023 and December 31, 2022, respectively.

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EMPLOYEE STOCK BENEFIT PLANS

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

Employee Stock Benefit Plans

EMPLOYEE STOCK BENEFIT PLANS

Stock-based compensation expense was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
Dollars in millions	2023		2022		2023		2022
Cost of products sold	$	13	$	11	$	24	$	19
Marketing, selling and administrative	56		48		107		96
Research and development	68		57		128		108
Total Stock-based compensation expense	$	137	$	116	$	259	$	223
Income tax benefit(a)	$	27	$	22	$	52	$	44

(a)    Income tax benefit excludes excess tax benefits from share-based compensation awards that were vested or exercised of $2 million and $20 million for the three and six months ended June 30, 2023, and $19 million and $59 million for the three and six months ended June 30, 2022, respectively.

The number of units granted and the weighted-average fair value on the grant date for the six months ended June 30, 2023 were as follows:

Units in millions	Units	Weighted-Average Fair Value
Restricted stock units	9.0	$	60.59
Market share units	1.0	58.18
Performance share units	1.5	64.18

Dollars in millions	Restricted Stock Units		Market Share Units		Performance Share Units
Unrecognized compensation cost	$	1,031	$	80	$	144
Expected weighted-average period in years of compensation cost to be recognized	3.0		3.1		2.0

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LEGAL PROCEEDINGS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Legal Proceedings and Contingencies

LEGAL PROCEEDINGS AND CONTINGENCIES

BMS and certain of its subsidiaries are involved in various lawsuits, claims, government investigations and other legal proceedings that arise in the ordinary course of business. These claims or proceedings can involve various types of parties, including governments, competitors, customers, partners, suppliers, service providers, licensees, licensors, employees, or shareholders, among others. These matters may involve patent infringement, antitrust, securities, pricing, sales and marketing practices, environmental, commercial, contractual rights, licensing obligations, health and safety matters, consumer fraud, employment matters, product liability and insurance coverage, among others. The resolution of these matters often develops over a long period of time and expectations can change as a result of new findings, rulings, appeals or settlement arrangements. Legal proceedings that are significant or that BMS believes could become significant or material are described below.

While BMS does not believe that any of these matters, except as otherwise specifically noted below, will have a material adverse effect on its financial position or liquidity as BMS believes it has substantial claims and/or defenses in the matters, the outcomes of BMS's legal proceedings and other contingencies are inherently unpredictable and subject to significant uncertainties. There can be no assurance that there will not be an increase in the scope of one or more of these pending matters or any other or future lawsuits, claims, government investigations or other legal proceedings will not be material to BMS's financial position, results of operations or cash flows for a particular period. Furthermore, failure to successfully enforce BMS's patent rights would likely result in substantial decreases in the respective product revenues from generic competition.

Unless otherwise noted, BMS is unable to assess the outcome of the respective matters nor is it able to estimate the possible loss or range of losses that could potentially result for such matters. Contingency accruals are recognized when it is probable that a liability will be incurred and the amount of the related loss can be reasonably estimated. Developments in legal proceedings and other matters that could cause changes in the amounts previously accrued are evaluated each reporting period. For a discussion of BMS’s tax contingencies, see " —Note 7. Income Taxes."

INTELLECTUAL PROPERTY

Anti-PD-1, Anti-PD-L1 and CTLA-4 — U.S.

In September 2015, Dana-Farber Cancer Institute ("Dana-Farber") filed a complaint in the U.S. District Court for the District of Massachusetts seeking to correct the inventorship on up to six related U.S. patents directed to methods of treating cancer using PD-1 and PD-L1 antibodies. Specifically, Dana-Farber sought to add two scientists as inventors to these patents. In October 2017, Pfizer was allowed to intervene in the case alleging that one of the scientists identified by Dana-Farber was employed by a company eventually acquired by Pfizer during the relevant period. In May 2019, the District Court issued a decision ruling that the two scientists should be added as inventors to the patents, which decision was affirmed on appeal. In June 2019, Dana-Farber filed a new lawsuit in the District of Massachusetts against BMS seeking damages as a result of the decision adding the scientists as inventors. In February 2021, BMS filed a motion to dismiss that complaint. In August 2021, the Court denied the motion to dismiss, but ruled that Dana-Farber's claims for damages before May 17, 2019—the date of the District Court's ruling that Dana-Farber was a co-inventor of the patents—are preempted by federal patent law. On January 25, 2023, the Court held a hearing on a motion filed by BMS requesting that the Court enter summary judgment in BMS's favor. In April 2023, BMS and Dana-Farber entered into a settlement agreement and these litigations were dismissed.

On March 17, 2022, BMS filed a lawsuit in U.S. District Court for the District of Delaware against AstraZeneca Pharmaceuticals LP and AstraZeneca UK Ltd (collectively, "AZ") alleging that AZ's marketing of the PD-L1 antibody Imfinzi infringes certain claims of U.S. Patent Nos. 9,580,505, 9,580,507, 10,138,299, 10,308,714, 10,266,594, 10,266,595, 10,266,596 and 10,323,092. On April 25, 2023, BMS filed an additional lawsuit against AZ in U.S. District Court for the District of Delaware alleging that AZ's marketing of the PD-L1 antibody Imfinzi infringes U.S. Patent No. 9,402,899.

On January 23, 2023, BMS filed a lawsuit in U.S. District Court for the District of Delaware against AstraZeneca Pharmaceuticals LP and AstraZeneca AB (collectively, "AZ AB") alleging that AZ AB's marketing of the CTLA-4 antibody Imjudo infringes certain claims of U.S. Patent Nos. 9,320,811 and 9,273,135.

On July 24, 2023, BMS entered into an agreement with AZ and AZ AB (the "AZ Parties") to settle all outstanding claims between them in the CTLA-4 litigation and the two PD-L1 antibody litigations described above. Under the agreement, the AZ Parties are to pay an aggregate of $560 million to BMS in four payments through September 2026, which will be subject to sharing arrangements with Ono and Dana-Farber. BMS's share is approximately $418 million, of which the net present value will be reflected in income during the third quarter of 2023.

Eliquis - Europe

Lawsuits have been filed by generic companies in various countries in Europe seeking revocation of our composition of matter patents and SPCs relating to Eliquis, and trials or preliminary proceedings have been held in certain of those cases.

In Denmark, BMS filed a request for a preliminary injunction against Teva, but the request was denied in December 2022, based on the finding that there is no imminent threat of a launch by Teva in Denmark.

In Finland, the court granted our request that a preliminary injunction be entered prohibiting Teva from offering, storing or selling generic Eliquis products in Finland that have obtained price and reimbursement.

In France, a trial was held regarding Teva's challenge to the validity of the French composition of matter patent and related SPC, and a decision was issued on June 8, 2023, confirming their validity and rejecting Teva's claims.

In Ireland, the court granted our request that a preliminary injunction be entered restraining Teva from making, offering, putting on the market and/or using and/or importing or stocking for the aforesaid purposes, generic Eliquis products. A trial regarding Teva's challenge to the validity of the Irish composition of matter patent and related SPC began on July 4, 2023, and is expected to conclude on July 28, 2023, with a decision expected sometime in the fourth quarter of 2023.

In the Netherlands, our requests that preliminary injunctions be entered to prevent at-risk generic launches by Sandoz, Stada and Teva prior to full trials on the validity of the Dutch composition of matter patent and SPC were denied by the lower courts. We appealed those denials, and a combined appellate hearing was held on June 29, 2023.

In Norway, a trial was held regarding Teva's challenge to the validity of the Norwegian composition of matter patent and related SPC, and a decision was issued on May 23, 2023, confirming their validity and rejecting Teva's claims.

In Sweden, a trial was held regarding Teva's challenge to the validity of the Swedish apixaban composition of matter patent and related SPC, and a decision was issued on November 2, 2022, confirming their validity and rejecting Teva's claims.

In the UK, Sandoz and Teva filed lawsuits in the United Kingdom seeking revocation of the UK apixaban composition of matter patent and related Supplementary Protection Certificate ("SPC"). BMS subsequently filed counterclaims for infringement in both actions. A combined trial took place in February 2022 and in a judgment issued on April 7, 2022, the judge found the UK apixaban composition of matter patent and related SPC invalid. BMS appealed the judgment and on May 4, 2023, the Court of Appeal upheld the lower court's decision finding the patent and SPC invalid. On June 1, 2023, BMS filed an application to appeal to the UK Supreme Court.

Following the above decisions in the UK and the Netherlands, generic manufacturers have begun marketing generic versions of Eliquis in the UK and the Netherlands, and may seek to market generic versions of Eliquis in additional countries in Europe, prior to the expiration of our patents, which may lead to additional infringement and invalidity actions involving Eliquis patents being filed in various countries in Europe.

Eliquis - U.S.

On February 24, 2023 and March 4, 2023, BMS received Notice Letters from Biocon and ScieGen, respectively, notifying BMS that they had filed ANDAs containing paragraph IV certifications seeking approval of generic versions of Eliquis in the U.S. In response, in April 2023, BMS filed patent infringement actions against Biocon and ScieGen in the U.S. District Court for the District of Delaware. On April 25, 2023, BMS entered into a confidential settlement agreement with ScieGen, settling all outstanding claims in the litigation with ScieGen. On June 16, 2023, BMS entered into a settlement agreement with Biocon settling all outstanding claims in the litigation with Biocon. The settlements with ScieGen and Biocon do not affect BMS's projected exclusivity period for Eliquis.

Onureg – U.S.

In November 2021, BMS received a Notice Letter from Accord notifying BMS that Accord had filed an ANDA containing a paragraph IV certification seeking approval of a generic version of Onureg in the U.S. and challenging U.S. Patent No. 8,846,628 (the "'628 Patent"), an FDA Orange Book-listed formulation patent covering Onureg, which expires in 2030. In response, BMS filed a patent infringement action against Accord in the U.S. District Court for the District of Delaware.

In March 2023, BMS received an additional Notice Letter from Accord notifying BMS that Accord had filed an ANDA containing a paragraph IV certification challenging U.S. Patent No. 11,571,436 (the "'436 Patent"), a newly-listed FDA Orange-Book formulation patent covering Onureg, which expires in 2029. In response, BMS filed an additional patent infringement action against Accord in the U.S. District Court for the District of Delaware. A trial for the consolidated actions has been scheduled to begin on May 20, 2024.

In February 2023, Apotex Inc. filed a request for inter partes review ("IPR") of the '628 Patent. BMS's preliminary response to Apotex's IPR request was filed on May 15, 2023. On July 20, 2023, the USPTO granted Apotex's request to institute an IPR of the '628 Patent.

In May 2023, BMS received a Notice Letter from MSN Laboratories Private Limited ("MSN") notifying BMS that MSN had filed an ANDA containing a paragraph IV certification seeking approval of a generic version of Onureg in the U.S. and challenging the '628 Patent and the '436 Patent. In response, BMS filed a patent infringement action against MSN in the U.S. District Court for the District of Delaware. No trial date has been set.

Plavix* - Australia

Sanofi was notified that, in August 2007, GenRx Proprietary Limited ("GenRx") obtained regulatory approval of an application for clopidogrel bisulfate 75mg tablets in Australia. GenRx, formerly a subsidiary of Apotex Inc., subsequently changed its name to Apotex ("GenRx-Apotex"). In August 2007, GenRx-Apotex filed an application in the Federal Court of Australia seeking revocation of Sanofi's Australian Patent No. 597784 (Case No. NSD 1639 of 2007). Sanofi filed counterclaims of infringement and sought an injunction. On September 21, 2007, the Federal Court of Australia granted Sanofi's injunction. A subsidiary of BMS was subsequently added as a party to the proceedings. In February 2008, a second company, Spirit Pharmaceuticals Pty. Ltd., also filed a revocation suit against the same patent. This case was consolidated with the GenRx-Apotex case. On August 12, 2008, the Federal Court of Australia held that claims of Patent No. 597784 covering clopidogrel bisulfate, hydrochloride, hydrobromide, and taurocholate salts were valid. The Federal Court also held that the process claims, pharmaceutical composition claims, and claim directed to clopidogrel and its pharmaceutically acceptable salts were invalid. BMS and Sanofi filed notices of appeal in the Full Court of the Federal Court of Australia ("Full Court") appealing the holding of invalidity of the claim covering clopidogrel and its pharmaceutically acceptable salts, process claims, and pharmaceutical composition claims. GenRx-Apotex appealed. On September 29, 2009, the Full Court held all of the claims of Patent No. 597784 invalid. In March 2010, the High Court of Australia denied a request by BMS and Sanofi to hear an appeal of the Full Court decision. The case was remanded to the Federal Court for further proceedings related to damages sought by GenRx-Apotex. BMS and GenRx-Apotex settled, and the GenRx-Apotex case was dismissed. The Australian government intervened in this matter seeking maximum damages up to 449 million AUD ($297 million), plus interest, which would be split between BMS and Sanofi, for alleged losses experienced for paying a higher price for branded Plavix* during the period when the injunction was in place. BMS and Sanofi dispute that the Australian government is entitled to any damages. A trial was concluded in September 2017. In April 2020, the Federal Court issued a decision dismissing the Australian government's claim for damages. In May 2020, the Australian government appealed the Federal Court's decision and an appeal hearing concluded in February 2021. On June 26, 2023, the appeal court issued a ruling in BMS and Sanofi's favor, upholding the lower court's decision.

Revlimid - U.S.

In April 2023, Celgene received a Notice Letter from Deva Holdings A.S. ("Deva") notifying Celgene that Deva has filed an ANDA containing paragraph IV certifications seeking approval to market a generic version of Revlimid in the U.S. In response, on May 31, 2023, Celgene initiated a patent infringement action against Deva in the U.S. District Court for the District of New Jersey asserting certain FDA Orange Book listed patents. Deva has not yet responded to the complaint. No schedule has been entered by the Court.

Sprycel - U.S.

In January 2022, BMS received a Notice Letter from Xspray Pharma AB ("Xspray"), Nanocopoeia, LLC ("Nanocopoeia") and Handa Oncology, LLC ("Handa"), respectively, notifying BMS that each had filed a 505(b)(2) NDA application containing paragraph IV certifications seeking approval of a dasatinib product in the U.S. and challenging two FDA Orange Book-listed monohydrate form patents expiring in 2025 and 2026. In February 2022, BMS filed a patent infringement action against Xspray in the U.S. District Court for the District of New Jersey. In May 2022, BMS filed a patent infringement action against Nanocopoeia in the U.S. District Court for the District of Minnesota. In November 2022, BMS filed a patent infringement action against Handa in the U.S. District Court for the Northern District of California. No trial dates have been scheduled in any of these actions. Both Xspray and Nanocopoeia filed motions for a judgment based on the pleadings. On March 24, 2023, the Minnesota court denied Nanocopoeia's motion. On April 25, 2023, the New Jersey court denied Xspray's motion. On June 16, 2023, BMS entered into a confidential settlement agreement with Handa, settling all outstanding claims in the litigation.

Zeposia - U.S.

On October 15, 2021, Actelion Pharmaceuticals LTD and Actelion Pharmaceuticals US, INC ("Actelion") filed a complaint for patent infringement in the United States District Court for the District of New Jersey against BMS and Celgene for alleged infringement of U.S. Patent No. 10,251,867 (the "'867 Patent"). The Complaint alleges that the sale of Zeposia infringes certain claims of the '867 Patent and Actelion is seeking damages and injunctive relief. No trial date has been scheduled.

PRICING, SALES AND PROMOTIONAL PRACTICES LITIGATION

Plavix* State Attorneys General Lawsuits

BMS and certain Sanofi entities are defendants in a consumer protection action brought by the attorney general of Hawaii relating to the labeling, sales and/or promotion of Plavix*. In February 2021, a Hawaii state court judge issued a decision against Sanofi and BMS, imposing penalties in the total amount of $834 million, with $417 million attributed to BMS. Sanofi and BMS appealed the decision. On March 15, 2023, the Hawaii Supreme Court issued its decision, reversing in part and affirming in part the trial court decision, vacating the penalty award and remanding the case for a new trial and penalty determination. A bench trial is scheduled to begin on September 25, 2023.

PRODUCT LIABILITY LITIGATION

BMS is a party to various product liability lawsuits. Plaintiffs in these cases seek damages and other relief on various grounds for alleged personal injury and economic loss. As previously disclosed, in addition to lawsuits, BMS also faces unfiled claims involving its products.

Abilify*

BMS and Otsuka are co-defendants in product liability litigation related to Abilify*. Plaintiffs allege Abilify* caused them to engage in compulsive gambling and other impulse control disorders. Cases have been filed in state and federal courts and additional cases are pending in Canada. The Judicial Panel on Multidistrict Litigation consolidated the federal court cases for pretrial purposes in the U.S. District Court for the Northern District of Florida. In February 2019, BMS and Otsuka entered into a master settlement agreement establishing a proposed settlement program to resolve all Abilify* compulsivity claims filed as of January 28, 2019 in the MDL as well as various state courts, including California and New Jersey. To date, the vast majority of cases have been dismissed based on participation in the settlement program or failure to comply with settlement related court orders and all remaining cases in the U.S. MDL litigation have since been resolved. Eleven inactive cases remain in New Jersey State court. There are also eleven cases pending in Canada (four class actions, seven individual injury claims). Out of the eleven cases in Canada, only two are active (the class actions in Quebec and Ontario), both of which class actions have now been certified.

Onglyza*

BMS and AstraZeneca are co-defendants in product liability litigation related to Onglyza*. Plaintiffs assert claims, including claims for wrongful death, as a result of heart failure or other cardiovascular injuries they allege were caused by their use of Onglyza*. In February 2018, the Judicial Panel on Multidistrict Litigation ordered all the federal Onglyza* cases to be transferred to an MDL in the U.S. District Court for the Eastern District of Kentucky. A significant majority of the claims are pending in the MDL, with others pending in a coordinated proceeding in California Superior Court in San Francisco ("JCCP"). On September 24, 2021, the JCCP court granted defendants' motion to exclude plaintiffs' only general causation expert and on January 5, 2022, the MDL court likewise granted defendants' motion to exclude plaintiffs' expert. On March 30, 2022, the JCCP court granted summary judgment to defendants, thus effectively dismissing the 18 claims previously pending in California state court. The decision was affirmed by the California Court of Appeal on April 19, 2023. Plaintiffs filed a petition for review by the California Supreme Court on May 29, 2023, which remains pending. Defendants filed a summary judgment motion in the MDL as well, which the MDL court granted on August 2, 2022. Plaintiffs filed their Notice of Appeal on December 2, 2022. As part of BMS's global diabetes business divestiture, BMS sold Onglyza* to AstraZeneca in February 2014 and any potential liability with respect to Onglyza* is expected to be shared with AstraZeneca.

SECURITIES LITIGATION

Celgene Securities Litigations

Beginning in March 2018, two putative class actions were filed against Celgene and certain of its officers in the U.S. District Court for the District of New Jersey (the "Celgene Securities Class Action"). The complaints allege that the defendants violated federal securities laws by making misstatements and/or omissions concerning (1) trials of GED-0301, (2) Celgene's 2020 outlook and projected sales of Otezla*, and (3) the new drug application for Zeposia. The Court consolidated the two actions and appointed a lead plaintiff, lead counsel, and co-liaison counsel for the putative class. In February 2019, the defendants filed a motion to dismiss plaintiff''s amended complaint in full. In December 2019, the Court denied the motion to dismiss in part and granted the motion to dismiss in part (including all claims arising from alleged misstatements regarding GED-0301). Although the Court gave the plaintiff leave to re-plead the dismissed claims, it elected not to do so, and the dismissed claims are now dismissed with prejudice. In November 2020, the Court granted class certification with respect to the remaining claims. In March 2023, the Court granted the defendants leave to file a motion for summary judgment, the briefing for which was completed in June 2023.

In April 2020, certain Schwab management investment companies on behalf of certain Schwab funds filed an individual action in the U.S. District Court for the District of New Jersey asserting largely the same allegations as the Celgene Securities Class Action against the same remaining defendants in that action (the "Schwab Action"). In July 2020, the defendants filed a motion to dismiss the plaintiffs' complaint in full. In March 2021, the Court granted in part and denied in part defendants' motion to dismiss consistent with its decision in the Celgene Securities Class Action.

The California Public Employees' Retirement System in April 2021 (the "CalPERS Action"); DFA Investment Dimensions Group Inc., on behalf of certain of its funds; and American Century Mutual Funds, Inc., on behalf of certain of its funds, in July 2021 (respectively the "DFA Action" and the "American Century Action"), and GIC Private Limited in September 2021 (the "GIC Action"), filed separate individual actions in the U.S. District Court for the District of New Jersey asserting largely the same allegations as the Celgene Securities Class Action and the Schwab individual action against the same remaining defendants in those actions. In October 2021, these actions were consolidated for pre-trial proceedings with the Schwab Action. The Court also consolidated any future direct actions raising common questions of law and fact with the Schwab Action.

No trial dates have been scheduled in any of the above Celgene Securities Litigations.

Contingent Value Rights Litigations

In June 2021, an action was filed against BMS in the U.S. District Court for the Southern District of New York asserting claims of alleged breaches of a Contingent Value Rights Agreement ("CVR Agreement") entered into in connection with the closing of BMS's acquisition of Celgene Corporation in November 2019. The successor trustee under the CVR Agreement alleges that BMS breached the CVR Agreement by allegedly failing to use "diligent efforts" to obtain FDA approval of liso-cel (Breyanzi) before a contractual milestone date, thereby avoiding a $6.4 billion potential obligation to holders of the contingent value rights governed by the CVR Agreement and by allegedly failing to permit inspection of records in response to a request by the successor trustee. The successor trustee seeks damages in an amount to be determined at trial and other relief, including interest and attorneys' fees. BMS disputes the successor trustee's allegations. BMS filed a motion to dismiss the successor trustee's complaint, which was denied on June 24, 2022.

In October 2021, alleged former Celgene stockholders filed a complaint in the U.S. District Court for the Southern District of New York asserting claims on behalf of a putative class of Celgene stockholders who received CVRs in the BMS merger with Celgene for violations of sections 14(a) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act") relating to the joint proxy statement. That action later was consolidated with another action filed in the same court, and a consolidated complaint thereafter was filed asserting claims on behalf of a class of CVR acquirers, whether in the BMS merger with Celgene or otherwise, for violations of sections 11, 12(a)(2), and 15 of the Securities Act of 1933 (the "Securities Act") and sections 10(b), 14(a) and 20(2) of the Exchange Act. The complaint alleges that the February 22, 2019 joint proxy statement was materially false or misleading because it failed to disclose that BMS allegedly had no intention to obtain FDA approval for liso-cel (Breyanzi) by the applicable milestone date in the CVR Agreement and that certain statements made by BMS or certain BMS officers in periodic SEC filings, earnings calls, press releases, and investor presentations between December 2019 and November 2020 were materially false or misleading for the same reason. Defendants moved to dismiss the complaint. On March 1, 2023, the Court entered an opinion and order granting defendants' motion and dismissed the complaint in its entirety. The claims under Sections 11, 12(a)(2), and 15 of the Securities Act and Section 14(a) of the Exchange Act were dismissed with prejudice. The claims under Sections 10(a) and 20(a) of the Exchange Act were dismissed with leave to file a further amended complaint which plaintiffs filed on April 14, 2023. Defendants moved to dismiss the amended complaint and briefing on the motion was completed on June 23, 2023. The motion is currently pending before the Court.

In November 2021, an alleged purchaser of CVRs filed a complaint in the Supreme Court of the State of New York for New York County asserting claims on behalf of a putative class of CVR acquirers for violations of sections 11(a) and 12(a)(2) of the Securities Act of 1933. The complaint alleges that the registration statement filed in connection with the proposed merger transaction between Celgene and BMS was materially false or misleading because it failed to disclose that allegedly BMS had no intention at the time to obtain FDA approval for liso-cel (Breyanzi) by the contractual milestone date. The complaint asserts claims against BMS, the members of its board of directors at the time of the joint proxy statement, and certain BMS officers who signed the registration statement. Defendants have moved to stay the action pending resolution of the federal action or, in the alternative, to dismiss the complaint. In lieu of responding to the motion, the plaintiff filed an amended complaint on June 15, 2023. Defendants again filed a motion to stay or, in the alternative, to dismiss the amended complaint on July 13, 2023.

In November 2021, an alleged Celgene stockholder filed a complaint in the Superior Court of New Jersey, Union County asserting claims on behalf of two separate putative classes, one of acquirers of CVRs and one of acquirers of BMS common stock, for violations of sections 11(a), 12(a)(2), and 15 of the Securities Act. The complaint alleges that the registration statement filed in connection with the proposed merger transaction between Celgene and BMS was materially false or misleading because it failed to disclose that allegedly BMS had no intention at the time to obtain FDA approval for liso-cel (Breyanzi) by the contractual milestone date. The complaint asserts claims against BMS, the members of its board of directors at the time of the joint proxy statement, certain BMS officers who signed the registration statement and Celgene's former chairman and chief executive officer. Defendants moved to stay the action pending resolution of the federal action and, in the alternative, to dismiss the complaint. On February 17, 2023, the Court granted defendants' motion to stay and declined to reach the merits of defendants' motion to dismiss. The Court deemed the action stayed pending resolution of the federal action, subject to plaintiff's right to seek to vacate the stay should changed circumstances warrant such relief, and filed a written order staying the case for 200 days.

No trial dates have been scheduled in any of the above CVR Litigations.

OTHER LITIGATION

IRA Litigation

On June 16, 2023, BMS filed a lawsuit against the U.S. Department of Health & Human Services and the Centers for Medicare & Medicaid Services, et al., challenging the constitutionality of the IRA. A program in the IRA requires pharmaceutical companies, like BMS, under the threat of significant penalties, to sell their most innovative and effective medicines at government-dictated prices. BMS argues that this program violates the Fifth Amendment, which requires the government to pay just compensation if it takes property for public use, by requiring pharmaceutical manufacturers to provide innovative medicines to third parties at prices set by the government, without any requirement that those prices reflect fair market value. BMS also argues that the IRA violates the First Amendment right to free speech by requiring manufacturers to state publicly that the government's price setting is a true negotiation that resulted in a fair price, even if it was not.

Thalomid and Revlimid Litigations

Beginning in November 2014, certain putative class action lawsuits were filed against Celgene in the U.S. District Court for the District of New Jersey alleging that Celgene violated various antitrust, consumer protection, and unfair competition laws by (a) allegedly securing an exclusive supply contract for the alleged purpose of preventing a generic manufacturer from securing its own supply of thalidomide active pharmaceutical ingredient, (b) allegedly refusing to sell samples of Thalomid and Revlimid brand drugs to various generic manufacturers for the alleged purpose of bioequivalence testing necessary for ANDAs to be submitted to the FDA for approval to market generic versions of these products, (c) allegedly bringing unjustified patent infringement lawsuits in order to allegedly delay approval for proposed generic versions of Thalomid and Revlimid, and/or (d) allegedly entering into settlements of patent infringement lawsuits with certain generic manufacturers that allegedly have had anticompetitive effects. The plaintiffs, on behalf of themselves and putative classes of third-party payers, sought injunctive relief and damages. The various lawsuits were consolidated into a master action for all purposes. In March 2020, Celgene reached a settlement with the class plaintiffs. In October 2020, the Court entered a final order approving the settlement and dismissed the matter. That settlement did not resolve the claims of certain entities that opted out of the settlement, and who have since filed new suits advancing related theories. As described below, those suits, together with a suit by certain specialty pharmacies and a new putative class action suit, are pending.

In March 2019, Humana Inc. ("Humana"), which opted out of the above settlement, filed a lawsuit against Celgene in the U.S. District Court for the District of New Jersey. Humana's complaint makes largely the same claims and allegations as were made in the now settled Thalomid and Revlimid antitrust class action litigation. The complaint purports to assert claims on behalf of Humana and its subsidiaries in several capacities, including as a direct purchaser and as an indirect purchaser, and seeks, among other things, treble and punitive damages, injunctive relief and attorneys' fees and costs. In May 2019, Celgene filed a motion to dismiss Humana's complaint. In April 2022, the Court issued an order denying Celgene's motion to dismiss. That order addressed only Celgene's argument that certain of Humana's claims were barred by the statute of limitations. The Court's order did not address Celgene's other grounds for dismissal and instead directed Celgene to present those arguments in a renewed motion to dismiss following the filing of amended complaints. In May 2022, Humana filed an amended complaint against Celgene and BMS asserting the same claims based on additional factual allegations. Celgene and BMS subsequently filed a motion to dismiss Humana's amended complaint, which was fully briefed in November 2022. No trial date has been scheduled.

United HealthCare Services, Inc. ("UHS"), Blue Cross Blue Shield Association ("BCBSA"), BCBSM Inc., Health Care Service Corporation ("HCSC"), Blue Cross and Blue Shield of Florida Inc., Cigna Corporation ("Cigna"), Molina Healthcare, Inc. ("Molina") and several MSP related entities (MSP Recovery Claims, Series LLC; MSPA Claims 1, LLC; MAO-MSO Recovery II, LLC, Series PMPI, a segregated series of MAO-MSO Recovery II, LLC; MSP Recovery Claims Series 44, LLC; MSP Recovery Claims PROV, Series LLC; and MSP Recovery Claims CAID, Series LLC (together, "MSP")) filed lawsuits making largely the same claims and allegations as were made in the now settled class action litigation and in the Humana opt-out action. Certain of the matters have made additional claims related to copay assistance for Thalomid and Revlimid. These cases are now pending in the U.S. District Court for the District of New Jersey. Celgene and BMS's motion to dismiss the Humana amended complaint applies to these other opt‑out actions as well, and these other opt‑out actions will proceed as described above with respect to that Humana opt-out action. No trial dates have been scheduled.

In May 2021, Molina sued Celgene and BMS in San Francisco Superior Court. Molina's complaint makes largely the same claims and allegations as were made in the now settled class action litigation. In June 2022, the San Francisco Superior Court dismissed 63 of Molina’s claims, which Molina later reasserted in the District of New Jersey as described above, and stayed the remaining 4 claims. No activity is expected in this case until disposition of the New Jersey actions.

Certain other entities that opted out of the now‑settled class action have also filed summonses related to two actions in the Philadelphia County Court of Common Pleas in connection with the allegations made by Humana and other opt‑out entities. Those actions have been placed in deferred status pending further developments in the above opt‑out cases.

In November 2022, certain specialty pharmacies filed an action as direct purchasers against Celgene, BMS, and certain generic manufacturers in the U.S. District Court for the District of New Jersey. The action makes largely the same claims and allegations against Celgene and BMS as were made with respect to Revlimid in the now settled class action litigation, and seek injunctive relief and damages under the Sherman Antitrust Act. Also in November 2022, a putative class of end-payor plaintiffs filed an action against Celgene, BMS, and certain generic manufacturers in the U.S. District Court for the District of New Jersey. The class complaint brings claims based on Celgene's allegedly anticompetitive settlements of Revlimid patent litigation, seeking damages under state antitrust and consumer protection laws and injunctive relief under federal antitrust law. Celgene, BMS and the generic defendants have filed consolidated motions to dismiss these two actions, and the motions were fully briefed in May 2023. No trial dates have been scheduled.

In May 2018, Humana filed a lawsuit against Celgene in the Pike County Circuit Court of the Commonwealth of Kentucky. Humana's complaint alleges Celgene engaged in unlawful off-label marketing in connection with sales of Thalomid and Revlimid and asserts claims against Celgene for fraud, breach of contract, negligent misrepresentation, unjust enrichment and violations of New Jersey's Racketeer Influenced and Corrupt Organizations Act ("NJ RICO"). The complaint seeks, among other things, treble and punitive damages, injunctive relief and attorneys' fees and costs. Humana subsequently dismissed its claims for breach of contract voluntarily. A trial for this matter began on January 31, 2023. On January 25, 2023, the Court granted Celgene's summary judgment motion on Humana's claims for violations of NJ RICO and dismissed those claims. On March 2, 2023, following a multi-week trial, the jury returned a full defense verdict in Celgene's favor on Humana's claims of fraud and negligent misrepresentation. In May 2020, Celgene filed suit against Humana Pharmacy, Inc. ("HPI"), a Humana subsidiary, in Delaware Superior Court. Celgene's complaint alleges that HPI breached its contractual obligations to Celgene by assigning claims to Humana that Humana is now asserting. The complaint seeks damages for HPI's breach as well as a declaratory judgment. On February 14, 2023, the Court granted summary judgment in favor of Celgene on its breach of contract claims. In July 2023, BMS and Humana entered into a settlement agreement settling all outstanding claims in both the Kentucky and HPI litigations.

BeiGene Arbitration Matter

On July 5, 2017, Celgene Logistics Sàrl ("Celgene Logistics") and BeiGene, Ltd. (together with its assignees, "BeiGene"), entered into a License and Supply Agreement (the "LSA") pursuant to which BeiGene was granted, among other things, an exclusive license to distribute and commercialize Revlimid, Vidaza and Abraxane in China.

BeiGene initiated an arbitration proceeding against Celgene Logistics and BMS at the International Chamber of Commerce in June 2020, asserting various claims, including breach of contract under the LSA. In October 2021, Celgene Logistics delivered notice to BeiGene terminating the LSA with respect to Abraxane. A final hearing on the merits was held in June 2022, and the parties have completed post-hearing briefing and closing arguments.

MSK Contract Litigation

On April 1, 2022, Memorial Sloan Kettering Cancer Center and Eureka Therapeutics, Inc. (collectively, "Plaintiffs") filed a complaint against BMS, Celgene and Juno (collectively, "Defendants"). In June 2022, Plaintiffs filed an amended complaint. Plaintiffs allege that Defendants breached a license agreement by allegedly failing to use commercially reasonable efforts to develop, manufacture, and commercialize a certain chimeric antigen receptor product and by failing to pay Plaintiffs a running royalty of at least 1.5% of worldwide sales of Abecma allegedly owed to Plaintiffs under the license agreement. Defendants disagree with plaintiffs' claims, and filed a motion to dismiss the amended complaint in July 2022. No trial date has been scheduled.

GOVERNMENT INVESTIGATIONS

Like other pharmaceutical companies, BMS and certain of its subsidiaries are subject to extensive regulation by national, state and local authorities in the U.S. and other countries in which BMS operates. As a result, BMS, from time to time, is subject to various governmental and regulatory inquiries and investigations as well as threatened legal actions and proceedings. It is possible that criminal charges, substantial fines and/or civil penalties, could result from government or regulatory investigations.

ENVIRONMENTAL PROCEEDINGS

As previously reported, BMS is a party to several environmental proceedings and other matters, and is responsible under various state, federal and foreign laws, including CERCLA, for certain costs of investigating and/or remediating contamination resulting from past industrial activity at BMS's current or former sites or at waste disposal or reprocessing facilities operated by third parties.

CERCLA and Other Remediation Matters

With respect to CERCLA and other remediation matters for which BMS is responsible under various state, federal and international laws, BMS typically estimates potential costs based on information obtained from the U.S. Environmental Protection Agency, or counterpart state or foreign agency and/or studies prepared by independent consultants, including the total estimated costs for the site and the expected cost-sharing, if any, with other "potentially responsible parties," and BMS accrues liabilities when they are probable and reasonably estimable. BMS estimated its share of future costs for these sites to be $84 million as of June 30, 2023, which represents the sum of best estimates or, where no best estimate can reasonably be made, estimates of the minimal probable amount among a range of such costs (without taking into account any potential recoveries from other parties). The amount includes the estimated costs for any additional probable loss associated with the previously disclosed North Brunswick Township High School Remediation Site.

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Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Pay vs Performance Disclosure
Net Income (Loss)	$ 2,073	$ 1,421	$ 4,335	$ 2,699

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Insider Trading Arrangements	6 Months Ended
	Jun. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

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BASIS OF PRESENTATION AND RECENTLY ISSUED ACCOUNTING STANDARDS (Policies)

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

Basis of Consolidation

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 June 30, 2023 and December 31, 2022, the results of operations for the three and six months ended June 30, 2023 and 2022, and cash flows for the six months ended June 30, 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

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 Judgements

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

Reclassifications

Certain reclassifications were made to conform the prior period consolidated financial statements to the current period presentation.

Recently Adopted Accounting Standards

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.

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.

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REVENUE (Tables)

6 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following table summarizes the disaggregation of revenue by nature:

	Three Months Ended June 30,				Six Months Ended June 30,
Dollars in millions	2023		2022		2023		2022
Net product sales	$	10,917	$	11,485	$	21,965	$	22,793
Alliance revenues	179		199		323		387
Other revenues	130		203		275		355
Total Revenues	$	11,226	$	11,887	$	22,563	$	23,535

Revenue Recognition Gross-To-Net Adjustments

The following table summarizes GTN adjustments:

	Three Months Ended June 30,				Six Months Ended June 30,
Dollars in millions	2023		2022		2023		2022
Gross product sales	$	18,111	$	17,299	$	35,399	$	33,949
GTN adjustments (a)
Charge-backs and cash discounts	(2,279)		(1,750)		(4,370)		(3,513)
Medicaid and Medicare rebates	(3,143)		(2,624)		(5,625)		(4,708)
Other rebates, returns, discounts and adjustments	(1,772)		(1,440)		(3,439)		(2,935)
Total GTN adjustments	(7,194)		(5,814)		(13,434)		(11,156)
Net product sales	$	10,917	$	11,485	$	21,965	$	22,793

(a)    Includes adjustments for provisions for product sales made in prior periods resulting from changes in estimates of $11 million and $98 million for the three and six months ended June 30, 2023 and $123 million and $197 million for the three and six months ended June 30, 2022, respectively.

Revenue from External Customers by Products and Services

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	2023		2022		2023		2022
In-Line Products
Eliquis	$	3,204	$	3,235	6,627		6,446
Opdivo	2,145		2,063		4,347		3,986
Pomalyst/Imnovid	847		908		1,679		1,734
Orencia	927		876		1,691		1,668
Sprycel	458		544		887		1,027
Yervoy	585		525		1,093		1,040
Mature and other products	472		512		939		1,049
Total In-Line Products	8,638		8,663		17,263		16,950
New Product Portfolio
Reblozyl	234		172		440		328
Abecma	132		89		279		156
Opdualag	154		58		271		64
Zeposia	100		66		178		102
Breyanzi	100		39		171		83
Onureg	44		32		78		55
Inrebic	27		23		52		41
Camzyos	46		3		75		3
Sotyktu	25		—		41		—
Total New Product Portfolio	862		482		1,585		832
Total In-Line Products and New Product Portfolio	9,500		9,145		18,848		17,782
Recent LOE Products(a)
Revlimid	1,468		2,501		3,218		5,298
Abraxane	258		241		497		455
Total Recent LOE Products	1,726		2,742		3,715		5,753
Total revenues	$	11,226	$	11,887	$	22,563	$	23,535
United States	$	7,891	$	8,268	$	15,924	$	15,962
International	3,160		3,427		6,309		7,154
Other(b)	175		192		330		419
Total revenues	$	11,226	$	11,887	$	22,563	$	23,535

(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.

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ALLIANCES (Tables)

6 Months Ended

Jun. 30, 2023

ALLIANCES [Abstract]

Selected Financial Information For Alliances

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	2023		2022		2023		2022
Revenues from alliances
Net product sales	$	3,320	$	3,273	6,852		$	6,512
Alliance revenues	179		199		323		387
Total alliance revenues	$	3,499	$	3,472	7,175		$	6,899
To/(from) alliance partners
Cost of products sold	$	1,614	$	1,572	$	3,320	$	3,128
Marketing, selling and administrative	(64)		(53)		(138)		(107)
Research and development	36		12		80		34
Acquired IPRD	55		100		55		100
Other (income)/expense, net	(15)		(11)		(27)		(23)

Dollars in millions	June 30, 2023		December 31, 2022
Selected alliance balance sheet information
Receivables – from alliance partners	$	287	$	317
Accounts payable – to alliance partners	1,613		1,249
Deferred income – from alliances(a)	300		289

(a) Includes unamortized upfront and milestone payments.

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DIVESTITURES, LICENSING AND OTHER ARRANGEMENTS (Tables)

6 Months Ended

Jun. 30, 2023

Acquisitions, Divestitures and Other Arrangements [Abstract]

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				Divestiture (Gains)/Losses				Royalty Income
Dollars in millions	2023		2022		2023		2022		2023		2022
Diabetes business - royalties	$	185	$	185	$	—	$	—	$	(218)	$	(220)
Mature products and other	3		3		—		—		—		(1)
Total	$	188	$	188	$	—	$	—	$	(218)	$	(221)
	Six Months Ended June 30,
	Net Proceeds				Divestiture (Gains)/Losses				Royalty Income
Dollars in Millions	2023		2022		2023		2022		2023		2022
Diabetes business - royalties	$	401	$	357	$	—	$	—	$	(406)	$	(390)
Mature products and other (a)	7		228		—		(211)		—		(2)
Total	$	408	$	585	$	—	$	(211)	$	(406)	$	(392)

(a)    Includes cash proceeds of $221 million and a divestiture gain of $211 million related to the sale of several mature products to Cheplapharm in the first quarter of 2022.

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 June 30,				Six Months Ended June 30,
Dollars in millions	2023		2022		2023		2022
Keytruda* royalties	$	(284)	$	(243)	$	(563)	$	(464)
Tecentriq* royalties	(24)		(19)		(54)		(44)
Contingent milestone income	(5)		(5)		(36)		(46)
Amortization of deferred income	(15)		(11)		(27)		(23)
Other royalties and licensing income	(12)		(9)		(23)		(16)
Total	$	(340)	$	(287)	$	(703)	$	(593)

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OTHER (INCOME)/EXPENSE, NET (Tables)

6 Months Ended

Jun. 30, 2023

Other Nonoperating Income (Expense) [Abstract]

Schedule Of Other Income Expense

	Three Months Ended June 30,				Six Months Ended June 30,
Dollars in millions	2023		2022		2023		2022
Interest expense (Note 10)	$	282	$	313	$	570	$	639
Royalty and licensing income (Note 4)	(340)		(287)		(703)		(593)
Royalty income - divestiture (Note 4)	(218)		(221)		(406)		(392)
Equity investment losses (Note 9)	58		308		213		952
Integration expenses (Note 6)	59		124		126		229
(Gain)/Loss on debt redemption (Note 10)	—		(9)		—		266
Divestiture gains (Note 4)	—		—		—		(211)
Litigation and other settlements (a)	(7)		25		(332)		(12)
Investment income	(95)		(27)		(197)		(37)
Provision for restructuring (Note 6)	113		20		180		43
Other	32		38		20		49
Other (income)/expense, net	$	(116)	$	284	$	(529)	$	933

(a)    Includes $400 million of income recorded in connection with Nimbus' TYK2 program change of control provision during the first quarter of 2023. Refer to "—Note 4. Divestitures, Licensing and Other Arrangements" for further information.

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RESTRUCTURING (Tables)

6 Months Ended

Jun. 30, 2023

Restructuring Charges [Abstract]

Restructuring and Related Costs

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	2023		2022		2023		2022
2023 Restructuring Plan	$	170	$	—	$	231	$	—
Celgene and Other Acquisition Plans	64		148		138		278
Total charges	$	234	$	148	$	369	$	278
Employee termination costs	$	109	$	19	$	174	$	41
Other termination costs	4		1		6		2
Provision for restructuring	113		20		180		43
Integration expenses	59		124		126		229
Accelerated depreciation	12		4		13		6
Asset impairments	50		—		50		—
Other shutdown costs	—		—		—		—
Total charges	$	234	$	148	$	369	$	278
Cost of products sold	$	36	$	—	$	37	$	—
Marketing, selling and administrative	20		4		20		6
Research and Development	6		—		6		—
Other (income)/expense, net	172		144		306		272
Total charges	$	234	$	148	$	369	$	278

Schedule of Restructuring Reserve by Type of Cost

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

	Six Months Ended June 30,
Dollars in millions	2023		2022
Beginning balance	$	47	$	101
Provision for restructuring(a)	180		43
Foreign currency translation and other	1		(6)
Payments	(48)		(67)
Ending balance	$	180	$	71

(a)    Includes a reduction of the liability resulting from changes in estimates of $4 million and $8 million for the six months ended June 30, 2023 and 2022, respectively.

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INCOME TAXES (Tables)

6 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

Schedule of Provision for Income Taxes

	Three Months Ended June 30,						Six Months Ended June 30,
Dollars in millions	2023			2022			2023			2022
Earnings before income taxes	$	1,859		$	1,958		$	4,629		$	3,645
Income tax (benefit)/provision	(218)			529			285			933
Effective tax rate	(11.7)		%	27.0		%	6.2		%	25.6		%

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EARNINGS PER SHARE (Tables)

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Schedule of Earnings/(Loss) Per Share, Basic and Diluted

	Three Months Ended June 30,				Six Months Ended June 30,
Dollars in millions, except per share data	2023		2022		2023		2022
Net earnings attributable to BMS	$	2,073	$	1,421	$	4,335	$	2,699
Weighted-average common shares outstanding – basic	2,093		2,133		2,096		2,140
Incremental shares attributable to share-based compensation plans	9		16		11		17
Weighted-average common shares outstanding – diluted	2,102		2,149		2,107		2,157
Earnings per common share
Basic	$	0.99	$	0.67	$	2.07	$	1.26
Diluted	$	0.99	0.66		$	2.06	1.25

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FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

Financial assets and liabilities measured at fair value on a recurring basis are summarized below:

	June 30, 2023						December 31, 2022
Dollars in millions	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Cash and cash equivalents
Money market and other securities	$	—	$	6,644	$	—	$	—	$	7,770	$	—
Marketable debt securities
Certificates of deposit	—		358		—		—		32		—
Commercial paper	—		—		—		—		98		—
Derivative assets	—		357		—		—		305		—
Equity investments	336		512		—		424		680		—
Derivative liabilities	—		180		—		—		213		—
Contingent consideration liability
Contingent value rights	5		—		—		5		—		—
Other acquisition related contingent consideration	—		—		9		—		—		24

Marketable Securities

The following table summarizes marketable debt securities:

	June 30, 2023								December 31, 2022
Dollars in millions	Amortized Cost		Gross Unrealized						Amortized Cost		Gross Unrealized
			Gains		Losses		Fair Value				Gains		Losses		Fair Value
Certificates of deposit	$	358	$	—	$	—	$	358	$	32	$	—	$	—	$	32
Commercial paper	—		—		—		—		98		—		—		98
Total marketable debt securities(a)	$	358	$	—	$	—	$	358	$	130	$	—	$	—	$	130

(a)    All marketable debt securities mature within one year as of June 30, 2023, and December 31, 2022.

Schedule of Equity Investments

The following summarizes the carrying amount of equity investments:

Dollars in millions	June 30, 2023		December 31, 2022
Equity investments with readily determinable fair values	$	848	$	1,104
Equity investments without readily determinable fair values	623		537
Limited partnerships and other equity method investments	520		546
Total equity investments	$	1,991	$	2,187

Debt Securities, Trading, and Equity Securities, FV-NI

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 June 30,		Six Months Ended June 30,
Dollars in millions	2023	2022	2023	2022
Equity investments with readily determinable fair values
Net loss recognized	47	254	188	852
Less: net gain recognized on investments sold	(11)	(16)	(12)	(16)
Net unrealized loss recognized on investments still held	58	270	200	868
Equity investments without readily determinable fair values
Upward adjustments	—	—	(6)	(6)
Impairments and downward adjustments	—	—	—	2
Equity in net loss of affiliates	11	54	31	104
Total equity investment losses	58	308	213	952

Schedule of Derivatives and Fair Value

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

	June 30, 2023								December 31, 2022
	Asset(a)				Liability(b)				Asset(a)				Liability(b)
Dollars in millions	Notional		Fair Value		Notional		Fair Value		Notional		Fair Value		Notional		Fair Value
Designated as cash flow hedges
Foreign currency exchange contracts	$	5,831	$	243	$	1,656	$	(79)	$	5,771	$	271	$	2,281	$	(80)
Cross-currency swap contracts	1,210		20		—		—		—		—		584		(7)
Designated as net investment hedges
Cross-currency swap contracts	561		13		1,167		(48)		72		1		1,157		(78)
Designated as fair value hedges
Interest rate swap contracts	—		—		3,755		(23)		—		—		255		(18)
Not designated as hedges
Foreign currency exchange contracts	2,370		66		2,334		(30)		1,564		33		1,703		(19)
Total return swap contracts (c)	374		15		—		—		—		—		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.

Derivative Instruments, Gain (Loss)

The following table summarizes the financial statement classification and amount of (gain)/loss recognized on hedges:

	Three Months Ended June 30, 2023				Six Months Ended June 30, 2023
Dollars in millions	Cost of products sold		Other (income)/expense, net		Cost of products sold		Other (income)/expense, net
Foreign currency exchange contracts	$	(90)	$	(44)	$	(210)	$	(60)
Cross-currency swap contracts	—		(5)		—		(28)
Interest rate swap contracts	—		(4)		—		(7)
	Three Months Ended June 30, 2022				Six Months Ended June 30, 2022
Dollars in millions	Cost of products sold		Other (income)/expense, net		Cost of products sold		Other (income)/expense, net
Foreign currency exchange contracts	$	(131)	$	(18)	$	(213)	$	(75)
Cross-currency swap contracts	—		(4)		—		(8)
Interest rate swap contracts	—		(7)		—		(18)

The following table summarizes the effect of derivative and non-derivative instruments designated as hedges in Other comprehensive income:

	Three Months Ended June 30,				Six Months Ended June 30,
Dollars in millions	2023		2022		2023		2022
Derivatives designated as cash flow hedges
Foreign exchange contracts gain/(loss):
Recognized in Other comprehensive income	$	60	$	481	$	53	$	601
Reclassified to Cost of products sold	(90)		(131)		(210)		(213)
Cross-currency swap contracts gain/(loss):
Recognized in Other comprehensive income	34		—		28		—
Reclassified to Other (income)/expense, net	4		—		(9)		—
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 income	34		51		35		64
Non-derivatives designated as net investment hedges
Non U.S. dollar borrowings gain/(loss):
Recognized in Other comprehensive income	—		68		(10)		83

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FINANCING ARRANGEMENTS (Tables)

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Schedule of Short-term Debt

Short-term debt obligations include:

Dollars in millions	June 30, 2023		December 31, 2022
Non-U.S. short-term debt obligations	$	125	$	176
Current portion of Long-term debt	2,414		3,897
Other	481		191
Total	$	3,020	$	4,264

Schedule of Long-term Debt and Current Portion of Long-term Debt

Long-term debt and the current portion of Long-term debt include:

Dollars in millions	June 30, 2023		December 31, 2022
Principal value	$	36,379	$	38,234
Adjustments to principal value:
Fair value of interest rate swap contracts	(23)		(18)
Unamortized basis adjustment from swap terminations	88		97
Unamortized bond discounts and issuance costs	(271)		(284)
Unamortized purchase price adjustments of Celgene debt	897		924
Total	$	37,070	$	38,953
Current portion of Long-term debt	$	2,414	$	3,897
Long-term debt	34,656		35,056
Total	$	37,070	$	38,953

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RECEIVABLES (Tables)

6 Months Ended

Jun. 30, 2023

Accounts Receivable, after Allowance for Credit Loss [Abstract]

Schedule of Receivables

Dollars in millions	June 30, 2023		December 31, 2022
Trade receivables	$	8,827	$	8,848
Less: charge-backs and cash discounts	(676)		(675)
Less: allowance for expected credit loss	(26)		(22)
Net trade receivables	8,125		8,151
Alliance, royalties, VAT and other	1,987		1,735
Receivables	$	10,112	$	9,886

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INVENTORIES (Tables)

6 Months Ended

Jun. 30, 2023

Inventory, Net [Abstract]

Inventories

Dollars in millions	June 30, 2023		December 31, 2022
Finished goods	$	594	$	509
Work in process	2,039		1,850
Raw and packaging materials	451		464
Total inventories	$	3,084	$	2,823
Inventories	$	2,364	$	2,339
Other non-current assets	720		484

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PROPERTY, PLANT AND EQUIPMENT (Tables)

6 Months Ended

Jun. 30, 2023

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Dollars in millions	June 30, 2023		December 31, 2022
Land	$	162	$	162
Buildings	6,039		5,920
Machinery, equipment and fixtures	3,434		3,284
Construction in progress	1,197		1,053
Gross property, plant and equipment	10,832		10,419
Less accumulated depreciation	(4,477)		(4,164)
Property, plant and equipment	$	6,355	$	6,255

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GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The changes in the carrying amounts in Goodwill were as follows:

Dollars in millions
Balance at December 31, 2022	$	21,149
Currency translation and other adjustments	14
Balance at June 30, 2023	$	21,163

Schedule of Other Intangible Assets

Other intangible assets consisted of the following:

	Estimated Useful Lives	June 30, 2023						December 31, 2022
Dollars in Millions		Gross carrying amounts		Accumulated amortization		Other intangible assets, net		Gross carrying amounts		Accumulated amortization		Other intangible assets, net
Licenses	5 – 15 years	$	400	$	(144)	$	256	$	400	$	(128)	$	272
Acquired marketed product rights	3 – 15 years	59,577		(35,545)		24,032		60,477		(31,949)		28,528
Capitalized software	3 – 10 years	1,602		(1,127)		475		1,555		(1,056)		499
IPRD		6,540		—		6,540		6,560		—		6,560
Total		$	68,119	$	(36,816)	$	31,303	$	68,992	$	(33,133)	$	35,859

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Supplemental Financial Information (Tables)

6 Months Ended

Jun. 30, 2023

Supplemental Financial Information [Abstract]

Schedule of Other Current Assets

Dollars in millions	June 30, 2023		December 31, 2022
Income taxes	$	4,542	$	3,547
Research and development	736		579
Contract assets	405		504
Restricted cash(a)	53		148
Other	1,132		1,017
Other current assets	$	6,868	$	5,795

Schedule of Other Assets, Noncurrent

Dollars in millions	June 30, 2023		December 31, 2022
Equity investments	$	1,991	$	2,187
Inventories	720		484
Operating leases	1,274		1,220
Pension and postretirement	298		285
Research and development	470		496
Restricted cash(a)	—		54
Other	269		214
Other non-current assets	$	5,022	$	4,940

(a)    Restricted cash primarily consists of funds restricted for annual Company contributions to the defined contribution plan in the U.S. and escrow for litigation settlements. Cash is restricted when withdrawal or general use is contractually or legally restricted. As of June 30, 2022 restricted cash was $210 million.

Schedule of Other Current Liabilities

Dollars in millions	June 30, 2023		December 31, 2022
Rebates and discounts	$	6,313	$	6,702
Income taxes	1,526		942
Employee compensation and benefits	770		1,425
Research and development	1,339		1,359
Dividends	1,191		1,196
Interest	304		321
Royalties	417		431
Operating leases	168		136
Other	2,033		2,074
Other current liabilities	$	14,061	$	14,586

Other Noncurrent Liabilities

Dollars in millions	June 30, 2023		December 31, 2022
Income taxes	$	3,166	$	3,992
Pension and postretirement	398		402
Operating leases	1,342		1,261
Deferred income	305		283
Deferred compensation	398		349
Other	293		303
Other non-current liabilities	$	5,902	$	6,590

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EQUITY (Tables)

6 Months Ended

Jun. 30, 2023

Equity [Abstract]

Schedule of Stock by Class

The following table summarizes changes in equity for the six months ended June 30, 2023:

	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, 2022	2,923	$	292	$	45,165	$	(1,281)	$	25,503	825	$	(38,618)	$	57
Net earnings	—	—		—		—		2,262		—	—		5
Other comprehensive loss	—	—		—		(87)		—		—	—		—
Cash dividends declared $0.57 per share	—	—		—		—		(1,197)		—	—		—
Share repurchase program	—	—		—		—		—		4	(250)		—
Stock compensation	—	—		(25)		—		—		(6)	60		—
Balance at March 31, 2023	2,923	$	292	$	45,140	$	(1,368)	$	26,568	823	$	(38,808)	$	62
Net earnings	—	—		—		—		2,073		—	—		4
Other comprehensive loss	—	—		—		(19)		—		—	—		—
Cash dividends declared $0.57 per share	—	—		—		—		(1,192)		—	—		—
Share repurchase program	—	—		—		—		—		13	(911)		—
Stock compensation	—	—		159		—		—		(2)	39		—
Distributions	—	—		—		—		—		—	—		(9)
Balance at June 30, 2023	2,923	292		45,299		(1,387)		27,449		834	(39,680)		57

The following table summarizes changes in equity for the six months ended June 30, 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 $0.54 per share	—	—		—		—		(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
Net earnings	—	—		—		—		1,421		—	—		8
Other comprehensive income	—	—		—		237		—		—	—		—
Cash dividends declared $0.54 per share	—	—		—		—		(1,152)		—	—		—
Stock repurchase program	—	—		300		—		—		2	(300)		—
Stock compensation	—	—		319		—		—		(8)	195		—
Distributions	—	—		—		—		—		—	—		(12)
Balance at June 30, 2022	2,923	292		44,375		(992)		24,217		788	(35,292)		61

Schedule of Comprehensive Income Loss

The following table summarizes the changes in Other comprehensive income by component:

	Three Months Ended June 30, 2023						Six Months Ended June 30, 2023
Dollars in millions	Pretax		Tax		After Tax		Pretax		Tax		After Tax
Derivatives qualifying as cash flow hedges
Recognized in Other comprehensive income	$	94	$	(16)	$	78	$	81	$	(13)	$	68
Reclassified to net earnings(a)	(86)		11		(75)		(219)		30		(189)
Derivatives qualifying as cash flow hedges	8		(5)		3		(138)		17		(121)
Pension and postretirement benefits
Actuarial (losses)/gains	(13)		2		(11)		(13)		2		(11)
Foreign currency translation	(4)		(7)		(11)		31		(5)		26
Other comprehensive income	$	(9)	$	(10)	$	(19)	$	(120)	$	14	$	(106)

	Three Months Ended June 30, 2022						Six Months Ended June 30, 2022
Dollars in millions	Pretax		Tax		After Tax		Pretax		Tax		After Tax
Derivatives qualifying as cash flow hedges
Recognized in Other comprehensive income	$	481	$	(65)	$	416	$	601	$	(81)	$	520
Reclassified to net earnings(a)	(131)		16		(115)		(216)		28		(188)
Derivatives qualifying as cash flow hedges	350		(49)		301		385		(53)		332
Pension and postretirement benefits
Actuarial gains/(losses)	20		(3)		17		40		(7)		33
Amortization(b)	6		(1)		5		12		(3)		9
Settlements(b)	4		(1)		3		5		(1)		4
Pension and postretirement benefits	30		(5)		25		57		(11)		46
Marketable debt securities
Unrealized (losses)/gains	—		(1)		(1)		(2)		—		(2)
Foreign currency translation	(64)		(24)		(88)		(70)		(30)		(100)
Other comprehensive income	$	316	$	(79)	$	237	$	370	$	(94)	$	276

(a)Included in Cost of products sold and Other (income)/expense, net. Refer to "—Note 9. Financial Instruments and Fair Value Measurements" for further information.

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

Schedule of Accumulated Other Comprehensive Income Loss

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

Dollars in millions	June 30, 2023		December 31, 2022
Derivatives qualifying as cash flow hedges	$	111	$	232
Pension and postretirement benefits	(634)		(623)
Foreign currency translation(a)	(864)		(890)
Accumulated other comprehensive loss	$	(1,387)	$	(1,281)

(a)Includes net investment hedge gains of $144 million and $125 million as of June 30, 2023 and December 31, 2022, respectively.

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EMPLOYEE STOCK BENEFIT PLANS (Tables)

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

Share-based Payment Arrangement, Cost by Plan

Stock-based compensation expense was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
Dollars in millions	2023		2022		2023		2022
Cost of products sold	$	13	$	11	$	24	$	19
Marketing, selling and administrative	56		48		107		96
Research and development	68		57		128		108
Total Stock-based compensation expense	$	137	$	116	$	259	$	223
Income tax benefit(a)	$	27	$	22	$	52	$	44

(a)    Income tax benefit excludes excess tax benefits from share-based compensation awards that were vested or exercised of $2 million and $20 million for the three and six months ended June 30, 2023, and $19 million and $59 million for the three and six months ended June 30, 2022, respectively.

Schedule Of Share Based Compensation Additional Information

The number of units granted and the weighted-average fair value on the grant date for the six months ended June 30, 2023 were as follows:

Units in millions	Units	Weighted-Average Fair Value
Restricted stock units	9.0	$	60.59
Market share units	1.0	58.18
Performance share units	1.5	64.18

Share-based Payment Arrangement, Nonvested Award, Cost

Dollars in millions	Restricted Stock Units		Market Share Units		Performance Share Units
Unrecognized compensation cost	$	1,031	$	80	$	144
Expected weighted-average period in years of compensation cost to be recognized	3.0		3.1		2.0

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REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Disaggregation of Revenue [Line Items]
Total revenues	$ 11,226	$ 11,887	$ 22,563	$ 23,535
Net product sales
Disaggregation of Revenue [Line Items]
Total revenues	10,917	11,485	21,965	22,793
Alliance revenues
Disaggregation of Revenue [Line Items]
Total revenues	179	199	323	387
Other revenues
Disaggregation of Revenue [Line Items]
Total revenues	$ 130	$ 203	$ 275	$ 355

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REVENUE - Reconciliation of Gross Product Sales to Net Product Sales (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Gross to Net Adjustments [Line Items]
Total revenues	$ 11,226	$ 11,887	$ 22,563	$ 23,535
Total GTN adjustments	(7,194)	(5,814)	(13,434)	(11,156)
Prior period gross to net adjustment impacted by new accounting pronouncement	11	123	98	197
Net product sales
Gross to Net Adjustments [Line Items]
Total revenues	10,917	11,485	21,965	22,793
Gross product sales
Gross to Net Adjustments [Line Items]
Total revenues	18,111	17,299	35,399	33,949
Charge-backs and cash discounts
Gross to Net Adjustments [Line Items]
Total GTN adjustments	(2,279)	(1,750)	(4,370)	(3,513)
Medicaid and Medicare rebates
Gross to Net Adjustments [Line Items]
Total GTN adjustments	(3,143)	(2,624)	(5,625)	(4,708)
Other rebates, returns, discounts and adjustments
Gross to Net Adjustments [Line Items]
Total GTN adjustments	$ (1,772)	$ (1,440)	$ (3,439)	$ (2,935)

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REVENUE - Disaggregation of Revenue by Product and Region (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Revenue from External Customer [Line Items]
Total revenues	$ 11,226	$ 11,887	$ 22,563	$ 23,535
Performance obligation satisfied in previous period	75	184	241	331
United States
Revenue from External Customer [Line Items]
Total revenues	7,891	8,268	15,924	15,962
International
Revenue from External Customer [Line Items]
Total revenues	3,160	3,427	6,309	7,154
Other
Revenue from External Customer [Line Items]
Total revenues	175	192	330	419
In-Line Products
Revenue from External Customer [Line Items]
Total revenues	8,638	8,663	17,263	16,950
Eliquis
Revenue from External Customer [Line Items]
Total revenues	3,204	3,235	6,627	6,446
Opdivo
Revenue from External Customer [Line Items]
Total revenues	2,145	2,063	4,347	3,986
Pomalyst/Imnovid
Revenue from External Customer [Line Items]
Total revenues	847	908	1,679	1,734
Orencia
Revenue from External Customer [Line Items]
Total revenues	927	876	1,691	1,668
Sprycel
Revenue from External Customer [Line Items]
Total revenues	458	544	887	1,027
Yervoy
Revenue from External Customer [Line Items]
Total revenues	585	525	1,093	1,040
Mature and other products
Revenue from External Customer [Line Items]
Total revenues	472	512	939	1,049
New Product Portfolio
Revenue from External Customer [Line Items]
Total revenues	862	482	1,585	832
Reblozyl
Revenue from External Customer [Line Items]
Total revenues	234	172	440	328
Abecma
Revenue from External Customer [Line Items]
Total revenues	132	89	279	156
Opdualag
Revenue from External Customer [Line Items]
Total revenues	154	58	271	64
Zeposia
Revenue from External Customer [Line Items]
Total revenues	100	66	178	102
Breyanzi
Revenue from External Customer [Line Items]
Total revenues	100	39	171	83
Onureg
Revenue from External Customer [Line Items]
Total revenues	44	32	78	55
Inrebic
Revenue from External Customer [Line Items]
Total revenues	27	23	52	41
Camzyos
Revenue from External Customer [Line Items]
Total revenues	46	3	75	3
Sotyktu
Revenue from External Customer [Line Items]
Total revenues	25	0	41	0
Total In-Line Products and New Product Portfolio
Revenue from External Customer [Line Items]
Total revenues	9,500	9,145	18,848	17,782
Recent LOE Products
Revenue from External Customer [Line Items]
Total revenues	1,726	2,742	3,715	5,753
Revlimid
Revenue from External Customer [Line Items]
Total revenues	1,468	2,501	3,218	5,298
Abraxane
Revenue from External Customer [Line Items]
Total revenues	$ 258	$ 241	$ 497	$ 455

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ALLIANCES - Selected Financial Information For Alliances (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Alliance Statement [Line Items]
Total revenues		$ 11,226	$ 11,887	$ 22,563	$ 23,535
Cost of products sold	[1]	2,876	2,720	5,442	5,191
Marketing, selling and administrative		(1,934)	(1,787)	(3,696)	(3,618)
Other (income)/expense, net		(116)	284	(529)	933
Receivables – from alliance partners		10,112		10,112		$ 9,886
Accounts payable – to alliance partners		3,069		3,069		3,040
Net product sales
Alliance Statement [Line Items]
Total revenues		10,917	11,485	21,965	22,793
Alliance revenues
Alliance Statement [Line Items]
Total revenues		179	199	323	387
Alliance revenues
Alliance Statement [Line Items]
Total revenues		3,499	3,472	7,175	6,899
Cost of products sold		1,614	1,572	3,320	3,128
Marketing, selling and administrative		(64)	(53)	(138)	(107)
Research and development		36	12	80	34
Other (income)/expense, net		(15)	(11)	(27)	(23)
Receivables – from alliance partners		287		287		317
Accounts payable – to alliance partners		1,613		1,613		1,249
Deferred income from - alliances		300		300		$ 289
Acquired IPRD		55	100	55	100
Alliance revenues | Net product sales
Alliance Statement [Line Items]
Total revenues		$ 3,320	$ 3,273	$ 6,852	$ 6,512

[1] Excludes amortization of acquired intangible assets

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ALLIANCES - Additional Information (Details) - BridgeBio $ in Millions	3 Months Ended
	Jun. 30, 2022 USD ($)
Alliance Statement [Line Items]
Upfront payments made to collaborative partner	$ 90
Consideration for contingent development and regulatory approval	$ 815

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DIVESTITURES, LICENSING AND OTHER ACQUISITIONS - Divestitures (Details) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Business Acquisition [Line Items]
Net Proceeds	$ 188	$ 188		$ 408	$ 585
Divestiture (Gains)/Losses	0	0		0	(211)
Royalty Income	(218)	(221)		(406)	(392)
Diabetes business
Business Acquisition [Line Items]
Net Proceeds	185	185		401	357
Divestiture (Gains)/Losses	0	0		0	0
Royalty Income	(218)	(220)		(406)	(390)
Mature products and other
Business Acquisition [Line Items]
Net Proceeds	3	3		7	228
Divestiture (Gains)/Losses	0	0		0	(211)
Royalty Income	$ 0	$ (1)		$ 0	$ (2)
Mature products and other | Cheplapharm
Business Acquisition [Line Items]
Net Proceeds			$ 221
Divestiture (Gains)/Losses			$ (211)

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DIVESTITURES, LICENSING AND OTHER ARRANGEMENTS - Licensing and Other Arrangements (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Royalty income, nonoperating	$ (218)	$ (221)	$ (406)	$ (392)
Contingent milestone income	(5)	(5)	(36)	(46)
Amortization of deferred income	(15)	(11)	(27)	(23)
Total	(340)	(287)	(703)	(593)
Keytruda Royalties
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Royalty income, nonoperating	(284)	(243)	(563)	(464)
Tecentriq royalties
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Royalty income, nonoperating	(24)	(19)	(54)	(44)
Other royalties and licensing income
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Royalty income, nonoperating	$ (12)	$ (9)	$ (23)	$ (16)

XML

DIVENSTITURES, LICENSING AND OTHER ARRANGEMENTS - Additional Information (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended			36 Months Ended	84 Months Ended
	Feb. 28, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2026	Dec. 31, 2023	Dec. 31, 2022
Licensing Arrangements [Line Items]
Payment to extinguish future royalty obligation			$ 295
Nimbus Therapuetics TYK2 Inhibitor
Licensing Arrangements [Line Items]
Proceeds from legal settlements		$ 400		$ 40
Contingent sales-based milestones	$ 2,000
Other (income)/expense		$ 400
Keytruda Royalties | Forecast
Licensing Arrangements [Line Items]
Percentage of net sales payable to alliance partner						6.50%
Keytruda Royalties | Forecast | Subsequent Event
Licensing Arrangements [Line Items]
Percentage of net sales payable to alliance partner					2.50%
Immatics
Licensing Arrangements [Line Items]
Upfront payments				150
Contingent and regulatory milestone payments				770
Dragonfly
Licensing Arrangements [Line Items]
Upfront payments				$ 175
Nimbus Therapeutics
Licensing Arrangements [Line Items]
Upfront payments	$ 4,000
Nimbus Therapeutics | Nimbus Therapuetics TYK2 Inhibitor
Licensing Arrangements [Line Items]
Change in control proceeds				10.00%
Percentage of ownership acquired	100.00%
Bristol-Myers Squibb | Keytruda Royalties | Forecast | Subsequent Event
Licensing Arrangements [Line Items]
Payment and royalty allocation					75.00%
Ono | Keytruda Royalties | Forecast | Subsequent Event
Licensing Arrangements [Line Items]
Payment and royalty allocation					25.00%
Mature products and other | Discontinued Operations, Held-for-sale
Licensing Arrangements [Line Items]
Assets held for sale							$ 172
Liabilities held for sale							20
Mature products and other | Cost of products sold
Licensing Arrangements [Line Items]
Asset impairment charges			$ 63
Mature products and other | LOTTE Corporation
Licensing Arrangements [Line Items]
Sales price							$ 159

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OTHER (INCOME)/EXPENSE, NET - Schedule Of Other Income Expense (Details) - USD ($) $ in Millions	3 Months Ended				6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Licensing Arrangements [Line Items]
Interest expense (Note 10)	$ 282		$ 313		$ 570	$ 639
Royalty and licensing income (Note 4)	(340)		(287)		(703)	(593)
Royalty income - divestiture (Note 4)	(218)		(221)		(406)	(392)
Equity investment losses (Note 9)	58		308		213	952
Integration expenses	59		124		126	229
(Gain)/Loss on debt redemption (Note 10)	0		(9)		0	266
Divestiture gains (Note 4)	0		0		0	(211)
Litigation and other settlements (a)	(7)		25		(332)	(12)
Investment income	(95)		(27)		(197)	(37)
Provision for restructuring (Note 6)	113		20		180	43
Other	32		38		20	49
Other (income)/expense, net	$ (116)		$ 284		$ (529)	$ 933
Nimbus Therapuetics TYK2 Inhibitor
Licensing Arrangements [Line Items]
Proceeds from legal settlements		$ 400		$ 40

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RESTRUCTURING - Additional Information (Details) $ in Billions	Jun. 30, 2023 USD ($)
2023 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Expected restructuring and related charges	$ 1.0
Celgene and Other Acquisition Plans
Restructuring Cost and Reserve [Line Items]
Expected restructuring and related charges	3.8
Restructuring and related charges incurred to date	$ 3.4

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RESTRUCTURING - Schedule of Restructuring and Related Costs (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Restructuring Cost and Reserve [Line Items]
Total charges	$ 234	$ 148	$ 369	$ 278
Employee termination costs	109	19	174	41
Provision for restructuring	113	20	180	43
Integration expenses	59	124	126	229
Accelerated depreciation	12	4	13	6
Asset impairments	50	0	50	0
Other termination costs
Restructuring Cost and Reserve [Line Items]
Other termination costs	4	1	6	2
Other shutdown costs
Restructuring Cost and Reserve [Line Items]
Other termination costs	0	0	0	0
Marketing, selling and administrative
Restructuring Cost and Reserve [Line Items]
Total charges	20	4	20	6
Other (income)/expense, net
Restructuring Cost and Reserve [Line Items]
Total charges	172	144	306	272
Cost of products sold
Restructuring Cost and Reserve [Line Items]
Total charges	36	0	37	0
Research and Development
Restructuring Cost and Reserve [Line Items]
Total charges	6	0	6	0
2023 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Total charges	170	0	231	0
Celgene and Other Acquisition Plans
Restructuring Cost and Reserve [Line Items]
Total charges	$ 64	$ 148	$ 138	$ 278

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RESTRUCTURING - Schedule of Restructuring Reserve by Type of Cost (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning of period	$ 47	$ 101
Restructuring charges	180	43
Foreign currency translation and other	1	(6)
Payments	(48)	(67)
Restructuring reserve, end of period	180	71
Change in estimates	$ 4	$ 8

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INCOME TAXES - Schedule of Provision for Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Earnings before income taxes	$ 1,859	$ 1,958	$ 4,629	$ 3,645
Income tax (benefit)/provision	$ (218)	$ 529	$ 285	$ 933
Effective tax rate	(11.70%)	27.00%	6.20%	25.60%

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INCOME TAXES - Additional Information (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Impairment of subsidiary investments	$ 656
Income tax reserves	89
Income tax payments	3,100	$ 2,700
Minimum
Reasonably possible decrease in unrecognized tax benefits	40
Maximum
Reasonably possible decrease in unrecognized tax benefits	$ 60

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EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Earnings Per Share [Abstract]
Net earnings attributable to BMS	$ 2,073	$ 1,421	$ 4,335	$ 2,699
Weighted-average common shares outstanding - basic (in shares)	2,093	2,133	2,096	2,140
Incremental shares attributable to share-based compensation plans (in shares)	9	16	11	17
Weighted-average common shares outstanding - diluted (in shares)	2,102	2,149	2,107	2,157
Earnings per common share
Earnings per common share, basic (in usd per share)	$ 0.99	$ 0.67	$ 2.07	$ 1.26
Earnings per common share, diluted (in usd per share)	$ 0.99	$ 0.66	$ 2.06	$ 1.25

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FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Schedule of Financial Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable debt securities	$ 358	$ 130
Equity investments	848	1,104
Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable debt securities	358	32
Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable debt securities	0	98
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market and other securities	0	0
Derivative assets	0	0
Derivative liabilities	0	0
Contingent consideration liability	0	0
Level 1 | Other Assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity investments	336	424
Level 1 | Contingent value rights
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration liability	5	5
Level 1 | Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable debt securities	0	0
Level 1 | Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable debt securities	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market and other securities	6,644	7,770
Derivative assets	357	305
Derivative liabilities	180	213
Contingent consideration liability	0	0
Level 2 | Other Assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity investments	512	680
Level 2 | Contingent value rights
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration liability	0	0
Level 2 | Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable debt securities	358	32
Level 2 | Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable debt securities	0	98
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market and other securities	0	0
Derivative assets	0	0
Derivative liabilities	0	0
Contingent consideration liability	9	24
Level 3 | Other Assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity investments	0	0
Level 3 | Contingent value rights
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration liability	0	0
Level 3 | Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable debt securities	0	0
Level 3 | Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable debt securities	$ 0	$ 0

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FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Available-for-sale Securities (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	$ 358	$ 130
Gross unrealized gains	0	0
Gross unrealized losses	0	0
Marketable debt securities, fair value	358	130
Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	358	32
Gross unrealized gains	0	0
Gross unrealized losses	0	0
Marketable debt securities, fair value	358	32
Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	0	98
Gross unrealized gains	0	0
Gross unrealized losses	0	0
Marketable debt securities, fair value	$ 0	$ 98

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FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Summary of Equity Investments Carrying Amount (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Equity investments with readily determinable fair values	$ 848	$ 1,104
Equity investments without readily determinable fair values	623	537
Limited partnerships and other equity method investments	520	546
Total equity investments	$ 1,991	$ 2,187

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FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS -Schedule of Equity Investments (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Equity investments with readily determined fair values
Net loss recognized	$ 47	$ 254	$ 188	$ 852
Less: net gain recognized on investments sold	(11)	(16)	(12)	(16)
Net unrealized loss recognized on investments still held	58	270	200	868
Equity investments without readily determinable fair values
Upward adjustments	0	0	(6)	(6)
Impairments and downward adjustments	0	0	0	2
Equity in net loss of affiliates	11	54	31	104
Total equity investment losses	$ 58	$ 308	$ 213	$ 952

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FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Additional Information (Details) € in Millions, $ in Millions	6 Months Ended
	Jun. 30, 2023 USD ($)	Jun. 30, 2023 EUR (€)	Dec. 31, 2022 USD ($)
Derivative [Line Items]
Cumulative upward adjustments	$ 186
Cumulative impairment amount	61
Pre-tax gains	111
Principal value	36,379		$ 38,234
Designated as Hedging Instrument
Derivative [Line Items]
Principal value | €		€ 375
Designated as Hedging Instrument | Cross-currency swap contracts
Derivative [Line Items]
Derivative, notional amount	1,700
Euro Member Countries, Euro | Designated as Hedging Instrument | Cross-currency swap contracts | Net Investment Hedging
Derivative [Line Items]
Derivative, notional amount	780
Euro Member Countries, Euro | Designated as Hedging Instrument | Cross-currency swap contracts | Cash Flow Hedging
Derivative [Line Items]
Derivative, notional amount	1,200
Euro Member Countries, Euro | Designated as Hedging Instrument | Foreign Exchange Contract
Derivative [Line Items]
Derivative, notional amount	5,100
Japan, Yen | Designated as Hedging Instrument | Cross-currency swap contracts
Derivative [Line Items]
Derivative, notional amount	650
Japan, Yen | Designated as Hedging Instrument | Foreign Exchange Contract
Derivative [Line Items]
Derivative, notional amount	$ 1,200

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FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Schedule of Derivatives and Fair Value (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Interest rate swap contracts
Derivatives, Fair Value [Line Items]
Derivative liabilities	$ (23)	$ (18)
Designated as Hedging Instrument | Interest rate swap contracts
Derivatives, Fair Value [Line Items]
Derivative assets	0	0
Derivative liabilities	(23)	(18)
Designated as Hedging Instrument | Interest rate swap contracts | Assets
Derivatives, Fair Value [Line Items]
Derivative, notional amount	0	0
Designated as Hedging Instrument | Interest rate swap contracts | Liability
Derivatives, Fair Value [Line Items]
Derivative, notional amount	3,755	255
Designated as Hedging Instrument | Cross-currency swap contracts
Derivatives, Fair Value [Line Items]
Derivative, notional amount	1,700
Designated as Hedging Instrument | Cross-currency swap contracts | Net Investment Hedging
Derivatives, Fair Value [Line Items]
Derivative assets	13	1
Derivative liabilities	(48)	(78)
Designated as Hedging Instrument | Cross-currency swap contracts | Cash Flow Hedging
Derivatives, Fair Value [Line Items]
Derivative assets	20	0
Derivative liabilities	0	(7)
Designated as Hedging Instrument | Cross-currency swap contracts | Assets | Net Investment Hedging
Derivatives, Fair Value [Line Items]
Derivative, notional amount	561	72
Designated as Hedging Instrument | Cross-currency swap contracts | Assets | Cash Flow Hedging
Derivatives, Fair Value [Line Items]
Derivative, notional amount	1,210	0
Designated as Hedging Instrument | Cross-currency swap contracts | Liability | Net Investment Hedging
Derivatives, Fair Value [Line Items]
Derivative, notional amount	1,167	1,157
Designated as Hedging Instrument | Cross-currency swap contracts | Liability | Cash Flow Hedging
Derivatives, Fair Value [Line Items]
Derivative, notional amount	0	584
Designated as Hedging Instrument | Foreign currency exchange contracts
Derivatives, Fair Value [Line Items]
Derivative assets	243	271
Derivative liabilities	(79)	(80)
Designated as Hedging Instrument | Foreign currency exchange contracts | Assets
Derivatives, Fair Value [Line Items]
Derivative, notional amount	5,831	5,771
Designated as Hedging Instrument | Foreign currency exchange contracts | Liability
Derivatives, Fair Value [Line Items]
Derivative, notional amount	1,656	2,281
Not Designated as Hedging Instrument | Foreign currency exchange contracts
Derivatives, Fair Value [Line Items]
Derivative assets	66	33
Derivative liabilities	(30)	(19)
Not Designated as Hedging Instrument | Foreign currency exchange contracts | Assets
Derivatives, Fair Value [Line Items]
Derivative, notional amount	2,370	1,564
Not Designated as Hedging Instrument | Foreign currency exchange contracts | Liability
Derivatives, Fair Value [Line Items]
Derivative, notional amount	2,334	1,703
Not Designated as Hedging Instrument | Total return swap contracts
Derivatives, Fair Value [Line Items]
Derivative assets	15	0
Derivative liabilities	0	(11)
Not Designated as Hedging Instrument | Total return swap contracts | Assets
Derivatives, Fair Value [Line Items]
Derivative, notional amount	374	0
Not Designated as Hedging Instrument | Total return swap contracts | Liability
Derivatives, Fair Value [Line Items]
Derivative, notional amount	$ 0	$ 322

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FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Derivative Instruments, Gain (Loss) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Foreign currency exchange contracts | Cost of products sold
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivative, net	$ 0	$ (131)	$ 0	$ (213)
Foreign currency exchange contracts | Other (income)/expense, net
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivative, net	(4)	(18)	(7)	(75)
Cross-currency swap contracts | Cost of products sold
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivative, net	0	0	0	0
Cross-currency swap contracts | Other (income)/expense, net
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivative, net	(5)	(4)	(28)	(8)
Interest rate swap contracts | Cost of products sold
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivative, net	(90)	0	(210)	0
Interest rate swap contracts | Other (income)/expense, net
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivative, net	$ (44)	$ (7)	$ (60)	$ (18)

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FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Gain/(Loss) on Hedging Activity (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Foreign exchange contracts gain/(loss):
Recognized in Other comprehensive income	$ 94	$ 481	$ 81	$ 601
Reclassified to net earnings, pretax	(86)	(131)	(219)	(216)
Unrealized Gain (Loss) on Foreign Currency Derivatives, Net, before Tax [Abstract]
Non-derivatives designated as net investment hedges	(4)	(64)	31	(70)
Designated as Hedging Instrument
Unrealized Gain (Loss) on Foreign Currency Derivatives, Net, before Tax [Abstract]
Non-derivatives designated as net investment hedges	0	68	(10)	83
Foreign currency exchange contracts
Foreign exchange contracts gain/(loss):
Recognized in Other comprehensive income	60	481	53	601
Foreign currency exchange contracts | Cost of products sold
Foreign exchange contracts gain/(loss):
Reclassified to net earnings, pretax	(90)	(131)	(210)	(213)
Interest rate swap contracts | Reclassified to Other (income)/expense, net
Foreign exchange contracts gain/(loss):
Reclassified to net earnings, pretax	0	0	0	(3)
Cross-currency swap contracts
Foreign exchange contracts gain/(loss):
Recognized in Other comprehensive income	34	0	28	0
Foreign Currency Transaction [Abstract]
Derivatives designated as net investment hedges	34	51	35	64
Cross-currency swap contracts | Other (income)/expense, net
Foreign exchange contracts gain/(loss):
Reclassified to net earnings, pretax	$ 4	$ 0	$ (9)	$ 0

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FINANCING ARRANGEMENTS - Short-Term Debt (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Debt Disclosure [Abstract]
Non-U.S. short-term debt obligations	$ 125	$ 176
Current portion of Long-term debt	2,414	3,897
Other	481	191
Short-term debt, total	$ 3,020	$ 4,264

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FINANCING ARRANGEMENTS - Schedule of Long-term Debt (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Principal value	$ 36,379	$ 38,234
Unamortized basis adjustment from swap terminations	88	97
Unamortized bond discounts and issuance costs	(271)	(284)
Unamortized purchase price adjustments of Celgene debt	897	924
Total	37,070	38,953
Current portion of Long-term debt	2,414	3,897
Long-term debt	34,656	35,056
Interest rate swap contracts
Debt Instrument [Line Items]
Fair value of interest rate swap contracts	$ (23)	$ (18)

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FINANCING ARRANGEMENTS - Additional Information (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Debt Instrument [Line Items]
Long-term debt, fair value	$ 33,500,000,000		$ 33,500,000,000		$ 34,900,000,000
Debt matured and repaid			1,900,000,000	$ 2,000,000,000
Long-term debt		$ 6,000,000,000		6,000,000,000
Net proceeds of debt				5,900,000,000
Extinguishment of debt				6,000,000,000
Payment for debt extinguishment				6,600,000,000
(Gain)/Loss on debt redemption (Note 10)	$ 0	$ (9,000,000)	0	266,000,000
Interest payments			639,000,000	720,000,000
2.750% Notes
Debt Instrument [Line Items]
Debt matured and repaid			$ 750,000,000
Interest rates	2.75%		2.75%
3.250% Notes
Debt Instrument [Line Items]
Debt matured and repaid			$ 890,000,000
Interest rates	3.25%		3.25%
7.150% Notes
Debt Instrument [Line Items]
Debt matured and repaid			$ 239,000,000
Interest rates	7.15%		7.15%
Floating Rate Notes due 2022
Debt Instrument [Line Items]
Debt matured and repaid				500,000,000
2.600% Notes
Debt Instrument [Line Items]
Debt matured and repaid				$ 1,500,000,000
Interest rates		2.60%		2.60%
Revolving Credit Facility | Line of Credit
Debt Instrument [Line Items]
Borrowings outstanding	$ 0		$ 0		$ 0
$5 Billion Maximum Borrowing Capacity
Debt Instrument [Line Items]
Long-term debt, term (in years)	5 years		5 years
Line of credit facility, maximum borrowing capacity	$ 5,000,000,000		$ 5,000,000,000
Renewal period (in years)	1 year		1 year

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RECEIVABLES - Schedule of Receivables (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Accounts Receivable, after Allowance for Credit Loss [Abstract]
Trade receivables	$ 8,827	$ 8,848
Less: charge-backs and cash discounts	(676)	(675)
Less: allowance for expected credit loss	(26)	(22)
Net trade receivables	8,125	8,151
Alliance, royalties, VAT and other	1,987	1,735
Receivables	$ 10,112	$ 9,886

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RECEIVABLES (Details) $ in Millions	6 Months Ended
	Jun. 30, 2023 USD ($) customer	Jun. 30, 2022 USD ($)	Dec. 31, 2022
Account Receivables [Line Items]
Non-U.S. receivables sold on a nonrecourse basis | $	$ 503	$ 674
Number of largest pharmaceutical wholesalers | customer	3
Customer Concentration Risk
Account Receivables [Line Items]
Percent of aggregate total trade receivables due from three pharmaceutical wholesalers	70.00%		66.00%

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INVENTORIES (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Inventory, Net [Abstract]
Finished goods	$ 594	$ 509
Work in process	2,039	1,850
Raw and packaging materials	451	464
Total inventories	3,084	2,823
Inventories	2,364	2,339
Other non-current assets	$ 720	$ 484

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INVENTORIES - Narrative (Details) $ in Millions	Dec. 31, 2022 USD ($)
Inventory Purchase Price Fair Value Adjustment
Inventories, fair value adjustment	$ 84

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PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
Land	$ 162		$ 162		$ 162
Buildings	6,039		6,039		5,920
Machinery, equipment and fixtures	3,434		3,434		3,284
Construction in progress	1,197		1,197		1,053
Gross property, plant and equipment	10,832		10,832		10,419
Less accumulated depreciation	(4,477)		(4,477)		(4,164)
Property, plant and equipment	6,355		6,355		$ 6,255
Depreciation expense	$ 151	$ 141	$ 297	$ 286

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GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Goodwill (Details) $ in Millions	6 Months Ended
	Jun. 30, 2023 USD ($)
Goodwill [Roll Forward]
Balance at December 31, 2022	$ 21,149
Currency translation and other adjustments	14
Balance at June 30, 2023	$ 21,163

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GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Other Intangible Assets (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Other intangible assets
Accumulated amortization	$ (36,816)	$ (33,133)
Other intangible assets	31,303	35,859
Total	68,119	68,992
IPRD
Other intangible assets
Other intangible assets	6,540	6,560
IPRD	6,540	6,560
Licenses
Other intangible assets
Gross carrying amounts	400	400
Accumulated amortization	(144)	(128)
Other intangible assets	$ 256	272
Licenses | Minimum
Other intangible assets
Estimated useful lives (in years)	5 years
Licenses | Maximum
Other intangible assets
Estimated useful lives (in years)	15 years
Acquired marketed product rights
Other intangible assets
Gross carrying amounts	$ 59,577	60,477
Accumulated amortization	(35,545)	(31,949)
Other intangible assets	$ 24,032	28,528
Acquired marketed product rights | Minimum
Other intangible assets
Estimated useful lives (in years)	3 years
Acquired marketed product rights | Maximum
Other intangible assets
Estimated useful lives (in years)	15 years
Capitalized software
Other intangible assets
Gross carrying amounts	$ 1,602	1,555
Accumulated amortization	(1,127)	(1,056)
Other intangible assets	$ 475	$ 499
Capitalized software | Minimum
Other intangible assets
Estimated useful lives (in years)	3 years
Capitalized software | Maximum
Other intangible assets
Estimated useful lives (in years)	10 years

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GOODWILL AND OTHER INTANGIBLE ASSETS - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 2,300.0	$ 2,400.0	$ 4,600.0	$ 4.9
Impairment of other intangible assets			$ 20.0	$ 40.0

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SUPPLEMENTAL FINANCIAL INFORMATION - Other Current Assets (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Supplemental Financial Information [Abstract]
Income taxes	$ 4,542	$ 3,547
Research and development	736	579
Contract assets	405	504
Restricted cash	53	148
Other	1,132	1,017
Other current assets	$ 6,868	$ 5,795

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SUPPLEMENTAL FINANCIAL INFORMATION - Other Non-Current Assets (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022	Jun. 30, 2022
Supplemental Financial Information [Abstract]
Equity investments	$ 1,991	$ 2,187
Inventories	720	484
Operating leases	1,274	1,220
Pension and postretirement	298	285
Research and development	470	496
Restricted cash	0	54
Other	269	214
Other non-current assets	$ 5,022	$ 4,940
Restricted cash for contributions and settlements			$ 210

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SUPPLEMENTAL FINANCIAL INFORMATION - Other Current Liabilities (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Supplemental Financial Information [Abstract]
Rebates and discounts	$ 6,313	$ 6,702
Income taxes	1,526	942
Employee compensation and benefits	770	1,425
Research and development	1,339	1,359
Dividends	1,191	1,196
Interest	304	321
Royalties	417	431
Operating leases	168	136
Other	2,033	2,074
Other current liabilities	$ 14,061	$ 14,586

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SUPPLEMENTAL FINANCIAL INFORMATION - Other Non-Current Liabilities (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Supplemental Financial Information [Abstract]
Income taxes	$ 3,166	$ 3,992
Pension and postretirement	398	402
Operating leases	1,342	1,261
Deferred income	305	283
Deferred compensation	398	349
Other	293	303
Other non-current liabilities	$ 5,902	$ 6,590

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EQUITY - Schedule of Stockholders Equity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended				6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance		$ 31,061			$ 31,061
Net earnings	$ 2,077		$ 1,429		4,344	$ 2,712
Other comprehensive loss	(19)		$ 237		(106)	$ 276
Share repurchase program				$ (4,250)
Stock compensation				$ 322
Ending balance	$ 31,973				$ 31,973
Dividends declared (in usd per share)	$ 0.57	$ 0.57	$ 0.54	$ 0.54
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)	2,923	2,923	2,923	2,923	2,923	2,923
Beginning balance	$ 292	$ 292	$ 292	$ 292	$ 292	$ 292
Ending balance (in shares)	2,923	2,923	2,923	2,923	2,923	2,923
Ending balance	$ 292	$ 292	$ 292	$ 292	$ 292	$ 292
Capital in Excess of Par Value of Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	45,140	45,165	43,756	44,361	45,165	44,361
Share repurchase program			300	(750)
Stock compensation	159	(25)	319	145
Ending balance	45,299	45,140	44,375	43,756	45,299	44,375
Accumulated Other Comprehensive Loss
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(1,368)	(1,281)	(1,229)	(1,268)	(1,281)	(1,268)
Other comprehensive loss	(19)	(87)	237	39
Ending balance	(1,387)	(1,368)	(992)	(1,229)	(1,387)	(992)
Retained Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	26,568	25,503	23,948	23,820	25,503	23,820
Net earnings	2,073	2,262	1,421	1,278
Cash dividends declared	(1,192)	(1,197)	1,152	1,150
Ending balance	27,449	26,568	24,217	23,948	27,449	24,217
Treasury Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ (38,808)	$ (38,618)	$ (35,187)	$ (31,259)	$ (38,618)	$ (31,259)
Treasury stock, beginning balance (in shares)	823	825	794	747	825	747
Share repurchase program (in shares)	13	4	2	65
Share repurchase program	$ (911)	$ (250)	$ (300)
Stock compensation	$ 39	$ 60	$ 195
Stock compensation (in shares)	(2)	(6)	(8)	(18)
Ending balance	$ (39,680)	$ (38,808)	$ (35,292)	$ (35,187)	$ (39,680)	$ (35,292)
Treasury stock, ending balance (in shares)	834	823	788	794	834	788
Noncontrolling Interest
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ 62	$ 57	$ 65	$ 60	$ 57	$ 60
Net earnings	4	5	8	5
Distributions	(9)		(12)
Ending balance	$ 57	$ 62	$ 61	$ 65	$ 57	$ 61

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EQUITY - Additional Information (Details) - USD ($) shares in Millions, $ in Billions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023
Equity [Line Items]
Stock repurchase program (in shares)			17
Stock repurchase program, remaining authorized repurchase amount			$ 6.0
Stock repurchased during period			$ 1.2
2022 ASR
Equity [Line Items]
Stock repurchase program (in shares)	2	65
Stock repurchase program, authorized amount		$ 5.0
Share Repurchase Program, Portion Of Authorized Program Received In Period		85.00%

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EQUITY - Schedule of Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Equity [Abstract]
Unrealized (losses)/gains, pretax	$ 94	$ 481	$ 81	$ 601
Unrealized (losses)/gains, tax	(16)	(65)	(13)	(81)
Unrealized (losses)/gains, after tax	78	416	68	520
Reclassified to net earnings, pretax	(86)	(131)	(219)	(216)
Reclassified to net earnings, tax	11	16	30	28
Reclassified to net earnings, after tax	(75)	(115)	(189)	(188)
Derivatives qualifying as cash flow hedges, pretax	8	350	(138)	385
Derivatives qualifying as cash flow hedges, tax	(5)	(49)	17	(53)
Derivatives qualifying as cash flow hedges, after tax	3	301	(121)	332
Actuarial gains/(losses), pretax	(13)	20	(13)	40
Actuarial gains/(losses), tax	2	(3)	2	(7)
Actuarial gains/(losses), after tax	(11)	17	(11)	33
Amortization, pretax		6		12
Amortization, tax		(1)		(3)
Amortization, after tax		5		9
Settlements, pretax		4		5
Settlements, tax		(1)		(1)
Settlements, after tax		3		4
Pension and postretirement benefits, pre-tax		30		57
Pension and postretirement benefits, tax		(5)		(11)
Pension and postretirement benefits, after tax	(11)	25	(11)	46
Unrealized (losses)/gains, pretax		0		(2)
Unrealized (losses)/gains, tax		(1)		0
Unrealized (losses)/gains, after tax	0	(1)	0	(2)
Foreign currency translation, pretax	(4)	(64)	31	(70)
Foreign currency translation, tax	(7)	(24)	(5)	(30)
Foreign currency translation, after tax	(11)	(88)	26	(100)
Other comprehensive income, pre-tax	(9)	316	(120)	370
Other comprehensive income, tax	(10)	(79)	14	(94)
Other comprehensive income, after tax	$ (19)	$ 237	$ (106)	$ 276

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EQUITY - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Equity [Abstract]
Derivatives qualifying as cash flow hedges	$ 111	$ 232
Pension and postretirement benefits	(634)	(623)
Foreign currency translation(a)	(864)	(890)
Accumulated other comprehensive loss	(1,387)	(1,281)
Net investment hedge gains	$ 144	$ 125

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EMPLOYEE STOCK BENEFIT PLANS - Stock Based Compensation Expense (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total Stock-based compensation expense	$ 137	$ 116	$ 259	$ 223
Income tax benefit	27	22	52	44
Excess tax benefits from share-based compensation awards	2	19	20	59
Cost of products sold
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total Stock-based compensation expense	13	11	24	19
Marketing, selling and administrative
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total Stock-based compensation expense	56	48	107	96
Research and Development
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total Stock-based compensation expense	$ 68	$ 57	$ 128	$ 108

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EMPLOYEE STOCK BENEFIT PLANS - Schedule of Share-based Compensation Additional Information (Details) shares in Millions	6 Months Ended
	Jun. 30, 2023 $ / shares shares
Restricted stock units
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of units granted (in shares) | shares	9.0
Weighted-average fair value (in usd per share) | $ / shares	$ 60.59
Market share units
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of units granted (in shares) | shares	1.0
Weighted-average fair value (in usd per share) | $ / shares	$ 58.18
Performance share units
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of units granted (in shares) | shares	1.5
Weighted-average fair value (in usd per share) | $ / shares	$ 64.18

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EMPLOYEE STOCK BENEFIT PLANS - Share-based Payment Arrangement, Nonvested Award, Cost (Details) $ in Millions	6 Months Ended
	Jun. 30, 2023 USD ($)
Restricted stock units
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unrecognized compensation cost	$ 1,031
Expected weighted-average period in years of compensation cost to be recognized	3 years
Market share units
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unrecognized compensation cost	$ 80
Expected weighted-average period in years of compensation cost to be recognized	3 years 1 month 6 days
Performance share units
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unrecognized compensation cost	$ 144
Expected weighted-average period in years of compensation cost to be recognized	2 years

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LEGAL PROCEEDINGS AND CONTINGENCIES (Details) $ in Millions, $ in Millions		1 Months Ended							38 Months Ended
	Jul. 24, 2023 USD ($) lawsuit	Jan. 31, 2022 patent	Feb. 28, 2021 USD ($)	May 31, 2019 scientist	Oct. 31, 2017 scientist	Sep. 30, 2015 scientist patent	Mar. 31, 2010 USD ($)	Mar. 31, 2010 AUD ($)	Sep. 30, 2026 numberOfPayment	Jun. 30, 2023 USD ($) lawsuit	Feb. 17, 2023 lawsuit	Jun. 30, 2022 claim	Apr. 01, 2022	Mar. 30, 2022 lawsuit	Nov. 30, 2021 acquirer	Jun. 30, 2021 USD ($)	Mar. 31, 2018 lawsuit
Legal Proceedings And Contingencies [Line Items]
Running royalty													0.015
Damages sought | $			$ 834
Class action claims											2
Obligation to holders of the contingent value rights | $																$ 6,400
Accrued liabilities for CERCLA matters | $										$ 84
Bristol-Myers Squibb
Legal Proceedings And Contingencies [Line Items]
Damages sought | $			$ 417
Anti-PD-1 Antibody Litigation
Legal Proceedings And Contingencies [Line Items]
Number of patents | patent						6
Number of scientists | scientist				2	1	2
Plavix Australia Intellectual Property | Australia, Dollars
Legal Proceedings And Contingencies [Line Items]
Damages paid | $								$ 449
Plavix Australia Intellectual Property | United States of America, Dollars
Legal Proceedings And Contingencies [Line Items]
Damages paid | $							$ 297
Abilify Product Liability | NEW JERSEY
Legal Proceedings And Contingencies [Line Items]
Individual injury claims										11
Abilify Product Liability | CANADA
Legal Proceedings And Contingencies [Line Items]
Pending claims										11
Class action claims										4
Individual injury claims										7
Pending claims, active										2
Onglyza Product Liability Litigation
Legal Proceedings And Contingencies [Line Items]
Pending claims														18
Molina Litigation
Legal Proceedings And Contingencies [Line Items]
Dismissed cases | claim												4
Class action claims | claim												63
Opt-Out Entities
Legal Proceedings And Contingencies [Line Items]
Class action claims										2
Xspray
Legal Proceedings And Contingencies [Line Items]
Number of patents | patent		2
Celgene Securities Class Action
Legal Proceedings And Contingencies [Line Items]
Putative claims																	2
AZ AB | Forecast
Legal Proceedings And Contingencies [Line Items]
Number of litigations	2
Proceeds from legal settlements | $	$ 560
Number of payments | numberOfPayment									4
Settlement amount | $	$ 418
Celgene Contingent Value Rights
Legal Proceedings And Contingencies [Line Items]
Putative claims																	2
Number of acquirers | acquirer															1
Written order staying the case, term (in days)											200 days