RESTRUCTURING

12 Months Ended

Dec. 31, 2023

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 expanding our 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 $3.9 billion. Cumulative charges of approximately $3.6 billion have been recognized to date including integration planning and execution expenses, employee termination benefit costs and accelerated stock-based compensation, contract termination costs and other shutdown costs associated with site exits. The remaining charges are primarily related to Celgene's IT system integration.

The following provides the charges related to restructuring initiatives by type of cost:


	Year Ended December 31,
Dollars in millions	2023		2022		2021
2023 Restructuring Plan	$	442	$	—	$	—
Celgene and Other Acquisition Plans	335		520		751
Total charges	$	777	$	520	$	751

Employee termination costs	$	350	$	69	$	159
Other termination costs	15		6		10
Provision for restructuring	365		75		169
Integration expenses	242		440		564
Accelerated depreciation	42		5		2
Asset impairments	126		—		24
Other shutdown costs, net	2		—		(8)
Total charges	$	777	$	520	$	751

Cost of products sold	$	64	$	—	$	24
Marketing, selling and administrative	94		5		3
Research and development	12		—		—
Other (income)/expense, net	607		515		724
Total charges	$	777	$	520	$	751

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


	Year Ended December 31,
Dollars in millions	2023		2022
Liability at January 1	$	47	$	101
Provision for restructuring(a)	365		75
Payments	(225)		(122)
Foreign currency translation and other	1		(7)
Liability at December 31	$	188	$	47

(a) Includes reductions to the liability resulting from changes in estimates of $9 million in 2023 and $7 million in 2022.