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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________
FORM 10-Q
___________________________
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2024
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 classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.10 Par ValueBMYNew York Stock Exchange
1.000% Notes due 2025BMY25New York Stock Exchange
1.750% Notes due 2035BMY35New York Stock Exchange
Celgene Contingent Value RightsCELG RTNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to the filing requirements for the past 90 days.    Yes  ☒    No  ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer  ☒
Accelerated filer  ☐
Non-accelerated filer  ☐
Smaller reporting company  ☐
Emerging growth company  ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes  ☐   No  ☒
APPLICABLE ONLY TO CORPORATE ISSUERS:
At April 18, 2024, there were 2,027,100,096 shares outstanding of the Registrant’s $0.10 par value common stock.





BRISTOL-MYERS SQUIBB COMPANY
INDEX TO FORM 10-Q
March 31, 2024
PART I—FINANCIAL INFORMATION
Item 1.
Item 2.
Item 3.
Item 4.
PART II—OTHER INFORMATION
Item 1.
Item 1A.
Item 2.
Item 5.
Item 6.
*    Indicates brand names of products which are trademarks not owned by BMS. Specific trademark ownership information is included in the Exhibit Index at the end of this Quarterly Report on Form 10-Q.



PART I—FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS
BRISTOL-MYERS SQUIBB COMPANY
CONSOLIDATED STATEMENTS OF EARNINGS
Dollars in millions, except per share data
(UNAUDITED)

 Three Months Ended March 31,
EARNINGS20242023
Net product sales$11,559 $11,048 
Alliance and other revenues306 289 
Total Revenues11,865 11,337 
Cost of products sold(a)
2,932 2,566 
Marketing, selling and administrative2,367 1,762 
Research and development2,695 2,321 
Acquired IPRD12,949 75 
Amortization of acquired intangible assets2,357 2,256 
Other (income)/expense, net
81 (413)
Total Expenses23,381 8,567 
(Loss)/Earnings before income taxes
(11,516)2,770 
Income tax provision
392 503 
Net (loss)/earnings
(11,908)2,267 
Noncontrolling interest3 5 
Net (loss)/earnings attributable to BMS
$(11,911)$2,262 
(Loss)/Earnings per common share:
Basic$(5.89)$1.08 
Diluted(5.89)1.07 
(a)    Excludes amortization of acquired intangible assets.


CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME
Dollars in millions
(UNAUDITED)
 Three Months Ended March 31,
COMPREHENSIVE (LOSS)/INCOME
20242023
Net (loss)/earnings
$(11,908)$2,267 
Other comprehensive income/(loss), net of taxes and reclassifications to earnings:
Derivatives qualifying as cash flow hedges191 (124)
Pension and postretirement benefits13 — 
Marketable debt securities(2)— 
Foreign currency translation(56)37 
Total Other comprehensive income/(loss)
146 (87)
Comprehensive (loss)/income
(11,762)2,180 
Comprehensive income attributable to noncontrolling interest3 5 
Comprehensive (loss)/income attributable to BMS
$(11,765)$2,175 
The accompanying notes are an integral part of these consolidated financial statements.

3

BRISTOL-MYERS SQUIBB COMPANY
CONSOLIDATED BALANCE SHEETS
Dollars in millions
(UNAUDITED)
 
ASSETSMarch 31,
2024		December 31,
2023
Current assets:
Cash and cash equivalents$9,330 $11,464 
Marketable debt securities340 816 
Receivables10,447 10,921 
Inventories2,985 2,662 
Other current assets5,567 5,907 
Total Current assets28,669 31,770 
Property, plant and equipment6,750 6,646 
Goodwill21,738 21,169 
Other intangible assets32,760 27,072 
Deferred income taxes2,723 2,768 
Marketable debt securities
367 364 
Other non-current assets6,024 5,370 
Total Assets$99,031 $95,159 
LIABILITIES
Current liabilities:
Short-term debt obligations$6,190 $3,119 
Accounts payable3,539 3,259 
Other current liabilities16,093 15,884 
Total Current liabilities25,822 22,262 
Deferred income taxes442 338 
Long-term debt49,487 36,653 
Other non-current liabilities6,732 6,421 
Total Liabilities82,483 65,674 
Commitments and Contingencies
EQUITY
BMS Shareholders’ equity:
Preferred stock— — 
Common stock292 292 
Capital in excess of par value of stock45,655 45,684 
Accumulated other comprehensive loss(1,400)(1,546)
Retained earnings15,640 28,766 
Less cost of treasury stock(43,697)(43,766)
Total BMS Shareholders’ equity16,490 29,430 
Noncontrolling interest58 55 
Total Equity16,548 29,485 
Total Liabilities and Equity$99,031 $95,159 
The accompanying notes are an integral part of these consolidated financial statements.
4


BRISTOL-MYERS SQUIBB COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
Dollars in millions
(UNAUDITED)
 Three Months Ended March 31,
 20242023
Cash Flows From Operating Activities:
Net (loss)/earnings
$(11,908)$2,267 
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization, net2,532 2,429 
Deferred income taxes(711)(548)
Stock-based compensation133 122 
Impairment charges1 20 
Divestiture gains and royalties(280)(194)
Acquired IPRD12,949 75 
Equity investment (gains)/losses
(102)155 
Other adjustments22 4 
Changes in operating assets and liabilities:
Receivables479 (175)
Inventories(218)(282)
Accounts payable300 187 
Rebates and discounts(665)(910)
Income taxes payable910 884 
Other(608)(1,064)
Net cash provided by operating activities2,834 2,970 
Cash Flows From Investing Activities:
Sale and maturities of marketable debt securities74757 
Purchase of marketable debt securities(274)(200)
Proceeds from sales of equity investments5 62 
Capital expenditures(284)(278)
Divestiture and other proceeds241 227 
Acquisition and other payments, net of cash acquired(20,053)(78)
Net cash used in investing activities(19,618)(210)
Cash Flows From Financing Activities:
Short-term debt obligations, net3,070 128 
Issuance of long-term debt12,883 — 
Repayment of long-term debt— (1,640)
Repurchase of common stock— (250)
Dividends(1,212)(1,196)
Stock option proceeds and other, net(97)(92)
Net cash provided by/(used in) financing activities
14,644 (3,050)
Effect of exchange rates on cash, cash equivalents and restricted cash(45)13 
Decrease in cash, cash equivalents and restricted cash(2,185)(277)
Cash, cash equivalents and restricted cash at beginning of period11,519 9,325 
Cash, cash equivalents and restricted cash at end of period$9,334 $9,048 
The accompanying notes are an integral part of these consolidated financial statements.

5

Note 1. BASIS OF PRESENTATION AND RECENTLY ISSUED ACCOUNTING STANDARDS

Basis of Consolidation

Bristol-Myers Squibb Company ("BMS", "we", "our", "us" or "the Company") prepared these unaudited consolidated financial statements following the requirements of the SEC and U.S. GAAP for interim reporting. Under those rules, certain footnotes and other financial information that are normally required for annual financial statements can be condensed or omitted. The Company is responsible for the consolidated financial statements included in this Quarterly Report on Form 10-Q, which include all adjustments necessary for a fair presentation of the financial position of the Company as of March 31, 2024 and December 31, 2023 and the results of operations and cash flows for the three months ended March 31, 2024 and 2023. 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, 2023 included in the 2023 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.

Recently Issued Accounting Standards Not Yet Adopted

Income Taxes

In December 2023, the FASB issued amended guidance on income tax disclosures. The guidance is intended to provide additional disaggregation to the effective income tax rate reconciliation and income tax payment disclosures. The amended guidance is effective for annual periods beginning January 2025 and should be applied on a prospective basis. Early adoption is permitted.

Segment Reporting

In November 2023, the FASB issued amended guidance for improvements to reportable segment disclosures. The revised guidance requires that a public entity disclose significant segment expenses regularly reviewed by the chief operating decision maker (CODM), including public entities with a single reportable segment. The amended guidance is effective for fiscal years beginning January 2024 and interim periods beginning January 2025 on a retrospective basis. Early adoption is permitted.

6

Note 2. REVENUE

The following table summarizes the disaggregation of revenue by nature:
Three Months Ended March 31,
Dollars in millions20242023
Net product sales$11,559 $11,048 
Alliance revenues134 144 
Other revenues172 145 
Total Revenues$11,865 $11,337 

The following table summarizes GTN adjustments:
Three Months Ended March 31,
Dollars in millions20242023
Gross product sales$19,295 $17,288 
GTN adjustments(a)
Charge-backs and cash discounts(2,556)(2,091)
Medicaid and Medicare rebates(3,084)(2,482)
Other rebates, returns, discounts and adjustments(2,096)(1,667)
Total GTN adjustments(b)
(7,736)(6,240)
Net product sales$11,559 $11,048 
(a)    Includes reductions to GTN adjustments for product sales made in prior periods resulting from changes in estimates of $80 million and $87 million for the three months ended March 31, 2024 and 2023, respectively.
(b)    Includes U.S. GTN adjustments of $6.9 billion and $5.5 billion for the three months ended March 31, 2024 and 2023, respectively.

7

The following table summarizes the disaggregation of revenue by product and region:
Three Months Ended March 31,
Dollars in millions20242023
Growth Portfolio
Opdivo$2,078 $2,202 
Orencia798 764 
Yervoy583 508 
Reblozyl354 206 
Opdualag206 117 
Abecma82 147 
Zeposia110 78 
Breyanzi107 71 
Camzyos84 29 
Sotyktu44 16 
Augtyro6 — 
Krazati21 — 
Other Growth products(a)
319 280 
Total Growth Portfolio
4,792 4,418 
Legacy Portfolio
Eliquis3,720 3,423 
Revlimid1,669 1,750 
Pomalyst/Imnovid865 832 
Sprycel374 429 
Abraxane217 239 
Other Legacy products(b)
228 246 
Total Legacy Portfolio
7,073 6,919 
Total Revenues$11,865 $11,337 
United States8,476 7,952 
International3,190 3,230 
Other(c)
199 155 
Total Revenues$11,865 $11,337 
(a)    Includes Onureg, Inrebic, Nulojix, Empliciti and royalty revenues.
(b)    Includes other mature brands.
(c)    Other revenues include alliance-related revenues for products not sold by BMS's regional commercial organizations.

Beginning in 2024, Puerto Rico revenues are included in International revenues. Prior period amounts have been reclassified to conform to the current presentation.

Revenue recognized from performance obligations satisfied in prior periods was $182 million and $166 million for the three months ended March 31, 2024 and 2023, 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.

8

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 March 31,
Dollars in millions20242023
Revenues from alliances
Net product sales$3,762 $3,532 
Alliance revenues134 144 
Total alliance revenues$3,896 $3,676 
To/(from) alliance partners
Cost of products sold$1,825 $1,706 
Marketing, selling and administrative(79)(74)
Research and development54 44 
Acquired IPRD 800 — 
Other (income)/expense, net(12)(12)

Dollars in millionsMarch 31,
2024		December 31,
2023
Selected alliance balance sheet information
Receivables – from alliance partners$188 $233 
Accounts payable – to alliance partners1,795 1,394 
Deferred income – from alliances(a)
263 274 
(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 2023 Form 10-K. Significant developments and updates related to alliances during the three months ended March 31, 2024 and 2023 are set forth below.

SystImmune

BMS and SystImmune, Inc. (SystImmune) are parties to a global strategic collaboration for the co-development and co-commercialization of BL-B01D1, a bispecific topoisomerase inhibitor-based anti-body drug conjugate currently being evaluated in a Phase I clinical trial for metastatic or unresectable NSCLC. BMS paid an upfront fee of $800 million which was included in Acquired IPRD during the three months ended March 31, 2024. BMS is also obligated to pay up to $7.6 billion upon the achievement of contingent development, regulatory and sales-based milestones.

The parties will jointly develop and commercialize BL-B01D1 in the U.S. and share in the profits and losses. SystImmune will be responsible for the development, commercialization, and manufacturing in Mainland China and will be responsible for manufacturing certain drug supplies for outside of Mainland China, where BMS will receive a royalty on net sales. BMS will be responsible for the development and commercialization in the rest of the world, where SystImmune will receive a royalty on net sales.

9

Note 4. ACQUISITIONS, DIVESTITURES, LICENSING AND OTHER ARRANGEMENTS

Asset Acquisition

Karuna

On March 18, 2024, BMS acquired Karuna, a clinical-stage biopharmaceutical company driven to discover, develop, and deliver transformative medicines for people living with psychiatric and neurological conditions. The acquisition provided BMS with rights to Karuna's lead asset, KarXT (xanomeline-trospium). KarXT is an antipsychotic with a novel mechanism of action and differentiated efficacy and safety, and it is currently under review by the FDA for the treatment of schizophrenia in adults with a PDUFA date of September 26, 2024. KarXT is also in registrational trials for both adjunctive therapy to existing standard of care agents in schizophrenia and the treatment of psychosis in patients with Alzheimer’s disease.

BMS acquired all of the issued and outstanding shares of Karuna's common stock for $330.00 per share in an all-cash transaction for total consideration of $14.0 billion, or $12.9 billion net of cash acquired. The acquisition was funded primarily with debt proceeds (see "—Note 10. Financing Arrangements" for further detail). The transaction was accounted for as an asset acquisition since KarXT represented substantially all of the fair value of the gross assets acquired. As a result, $12.1 billion was expensed to Acquired IPRD during the three months ended March 31, 2024. Total consideration also included $1.1 billion of vested equity awards and $289 million of unvested equity awards that were paid during the second quarter of 2024.

The following summarizes the total consideration transferred and allocation of consideration transferred to the assets acquired, liabilities assumed and Acquired IPRD expense:

Dollars in millions
Cash consideration for outstanding shares $12,606 
Cash consideration for equity awards 1,421 
  Consideration to be paid14,027 
Less: Charge for unvested stock awards(a)
(289)
Transaction costs 55 
Total consideration allocated$13,793 
Cash and cash equivalents$1,167 
Other assets67 
Intangible assets100 
Deferred income tax asset 542 
Deferred income tax liability(25)
Other liabilities(180)
Total identifiable assets acquired, net
1,671 
Acquired IPRD expense12,122 
Total consideration allocated
$13,793 
(a)        Includes cash-settled unvested equity awards of $130 million expensed to Marketing, selling and administrative and $159 million expensed in Research and development during the three months ended March 31, 2024.

Business Combinations

RayzeBio

On February 26, 2024, BMS acquired RayzeBio, a clinical-stage radiopharmaceutical therapeutics (RPT) company with actinium-based RPTs for solid tumors. The acquisition provided BMS with rights to RayzeBio’s actinium-based radiopharmaceutical platform and lead asset, RYZ101, which is in Phase III development for treatment of gastroenteropancreatic neuroendocrine tumors.

BMS acquired all of the issued and outstanding shares of RayzeBio's common stock for $62.50 per share in an all-cash transaction for total consideration of $4.1 billion, or $3.6 billion net of cash acquired. The acquisition was funded through a combination of cash on hand and debt proceeds (see "—Note 10. Financing Arrangements" for further detail).

10

The transaction was accounted for as a business combination requiring all assets acquired and liabilities assumed to be recognized at fair value as of the acquisition date. The purchase price allocation is preliminary and subject to change, including the valuation of intangible assets and income taxes. The amounts recognized will be finalized as the information necessary to complete the analysis is obtained, but no later than one year after the acquisition date.

Total consideration for the acquisition consisted of the following:
Dollars in millions
Cash consideration for outstanding shares $3,851 
Cash consideration for equity awards 296 
  Consideration paid4,147 
Less: Unvested stock awards(a)
(274)
Total consideration allocated$3,873 
(a)    Includes cash settlement for unvested equity awards of $159 million expensed in Marketing, selling and administrative and $115 million expensed in Research and development during the three months ended March 31, 2024.

The preliminary purchase price allocation resulted in the following amounts being allocated to the assets acquired and liabilities assumed as of the acquisition date based upon their respective preliminary fair values summarized below:
Dollars in millionsPreliminary Purchase Price Allocation
Cash and cash equivalents$501 
Other assets70 
Intangible assets 3,700 
Deferred income tax asset81 
Deferred income tax liability(798)
Other liabilities(109)
Identifiable net assets acquired$3,445 
Goodwill 428 
Total consideration allocated$3,873 

Intangible assets included $1.7 billion of indefinite-lived IPRD and $2.0 billion of R&D technology. The estimated fair values for the indefinite-lived IPRD asset and the R&D technology were determined using an income approach valuation method. Goodwill resulted primarily from the recognition of deferred tax liabilities and is not deductible for tax purposes.

Mirati

On January 23, 2024, BMS acquired Mirati, a commercial stage targeted oncology company, obtaining the rights to commercialize lung cancer medicine Krazati, and several clinical assets, including MRTX1719. Krazati is an inhibitor of the KRASG12C mutation approved by the FDA as a second-line treatment for patients with NSCLC and is in clinical development in combination with a PD-1 inhibitor as a first-line therapy for patients with NSCLC and other indications. MRTX1719 is a potential first-in-class MTA-cooperative PRMT5 inhibitor in Phase I development. BMS obtained access to several other clinical and pre-clinical stage assets, including additional KRAS inhibitors and enabling programs.

BMS acquired all of the issued and outstanding shares of Mirati's common stock for $58.00 per share in an all-cash transaction for total consideration of $4.8 billion, or $4.1 billion net of cash acquired. Mirati stockholders also received one non-tradeable contingent value right (CVR) for each share of Mirati common stock held, potentially worth $12.00 per share in cash for a total value of approximately $1.0 billion. The payout of the contingent value right is subject to the FDA acceptance of an NDA for MRTX1719 for the treatment of specific indications within seven years of the closing of the transaction. The acquisition was funded through a combination of cash on hand and debt proceeds (see "—Note 10. Financing Arrangements" for further detail).

The transaction was accounted for as a business combination requiring all assets acquired and liabilities assumed to be recognized at fair value as of the acquisition date. The purchase price allocation is preliminary and subject to change, including the valuation of intangible assets and income taxes. The amounts recognized will be finalized as the information necessary to complete the analysis is obtained, but no later than one year after the acquisition date.

11

Total consideration for the acquisition consisted of the following:
Dollars in millions
Cash consideration for outstanding shares $4,596 
Cash consideration for equity awards 205 
  Consideration paid4,801 
Plus: Fair value of CVRs248 
Less: unvested stock awards(a)
(114)
Total consideration allocated$4,935 
(a)    Includes cash settlement of unvested equity awards of $60 million expensed in Marketing, selling and administrative and $54 million expensed in Research and development during the three months ended March 31, 2024.

The preliminary purchase price allocation resulted in the following amounts being allocated to the assets acquired and liabilities assumed as of the acquisition date based upon their respective preliminary fair values summarized below:
Dollars in millionsPreliminary purchase price allocation
Cash and cash equivalents$748 
Inventories215 
Other assets159 
Intangible assets4,225 
Deferred income tax assets 734 
Deferred income tax liabilities(1,094)
Other liabilities(204)
Identifiable net assets acquired$4,783 
Goodwill152 
Total consideration allocated$4,935 

Inventories includes a fair value adjustment of $148 million. Intangible assets included $640 million of definite-lived Acquired marketed product rights (Krazati) and $3.5 billion of indefinite-lived IPRD assets. The estimated fair value of both definite-lived Acquired marketed product rights and indefinite-lived IPRD assets was determined using an income approach valuation method. Goodwill resulted primarily from the recognition of deferred tax liabilities and is not deductible for tax purposes.

The results of operations and cash flows for Karuna, RayzeBio and Mirati were included in the consolidated financial statements commencing on their respective acquisition dates and were not material. Historical financial results of the acquired entities were not significant.

Divestitures

The following table summarizes the financial impact of divestitures including royalties, which are included in Other (income)/expense, net. Revenue and pretax earnings related to all divestitures were not material in all periods presented (excluding divestiture gains or losses).
Three Months Ended March 31,
Net ProceedsDivestiture (Gains)/LossesRoyalty Income
Dollars in millions202420232024202320242023
Diabetes business - royalties
$231 $216 $— $— $(271)$(188)
Mature products and other— 4 — — — — 
Total$231 $220 — $— $(271)(188)

12

Licensing and Other Arrangements

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

Three Months Ended March 31,
Dollars in millions20242023
Keytruda* royalties
$(133)$(279)
Tecentriq* royalties
(12)(30)
Contingent milestone income— (31)
Amortization of deferred income(12)(12)
Other royalties and licensing income (4)(11)
Total$(161)$(363)

Keytruda* Patent License Agreement

BMS and Ono are parties to a global patent license agreement with Merck related to Merck's PD-1 antibody Keytruda*. Under the agreement, Merck paid ongoing royalties on global sales of Keytruda* of 6.5% through December 31, 2023 and is obligated to pay 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.

Other

Nimbus Change of Control Income

BMS and Nimbus Therapeutics ("Nimbus") are parties to a settlement resolving all legal claims and business interests pertaining to Nimbus' TYK2 inhibitor, which 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 three months ended March 31, 2023.

Note 5. OTHER (INCOME)/EXPENSE, NET
Three Months Ended March 31,
Dollars in millions20242023
Interest expense (Note 10)$425 $288 
Royalty and licensing income (Note 4)(161)(363)
Royalty income - divestiture (Note 4)(271)(188)
Investment income(183)(102)
Litigation and other settlements (Note 4)
2 (325)
Provision for restructuring (Note 6)220 67 
Integration expenses (Note 6)71 67 
Equity investment (gain)/losses (Note 9)(102)155 
Acquisition expense (Note 4)
49 — 
Other31 (12)
Other (income)/expense, net
$81 $(413)

13

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 expanding our cell therapy manufacturing capabilities. Consistent with our prioritization and efficiency goals communicated earlier this year, BMS continues to execute on strategic productivity initiatives through portfolio prioritization and management of our operating costs. Total expected restructuring costs under the 2023 Restructuring Plan to be incurred through 2026 are approximately $1.5 billion. These costs consist 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 acquisitions of Celgene (2019), Turning Point (2022), Mirati (2024), RayzeBio (2024) and Karuna (2024). The remaining charges of approximately $500 million consist primarily of employee termination costs, IT system integration costs and to a lesser extent site exit costs, including impairment and accelerated depreciation of property, plant and equipment.

The following provides the charges related to restructuring initiatives by type of cost:
Three Months Ended March 31,
Dollars in millions20242023
2023 Restructuring Plan$68 $61 
Celgene and Other Acquisition Plans244 74 
Total charges$312 $135 
Employee termination costs$217 $65 
Other termination costs3 2 
Provision for restructuring220 67 
Integration expenses71 67 
Accelerated depreciation14 1 
Asset impairments2 — 
Other shutdown costs5 — 
Total charges$312 $135 
Cost of products sold$14 $1 
Marketing, selling and administrative6 — 
Research and development1 — 
Other (income)/expense, net291 134 
Total charges$312 $135 

The following summarizes the charges and spending related to restructuring plan activities:
Three Months Ended March 31,
Dollars in millions20242023
Beginning balance $188 $47 
Provision for restructuring220 67 
Foreign currency translation and other(2)2 
Payments(97)(17)
Ending balance$309 $99 

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Note 7. INCOME TAXES
Three Months Ended March 31,
Dollars in millions20242023
(Loss)/Earnings before income taxes
$(11,516)$2,770 
Income tax provision392 503 
Effective tax rate(3.4)%18.2 %

Provision for income taxes in interim periods is determined based on the estimated annual effective tax rates and the tax impact of discrete items that are reflected immediately. The income tax provision of $392 million during the three months ended March 31, 2024 on a pretax loss of $11.5 billion resulted in an effective tax rate of (3.4)%, which included the impact of a $12.1 billion one-time, non-tax deductible charge for the acquisition of Karuna. 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 tax legislation code. Income tax payments were $187 million and $149 million for the three months ended March 31, 2024 and 2023, respectively.

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

It is reasonably possible that the amount of unrecognized tax benefits as of March 31, 2024 could decrease in the range of approximately $700 million to $740 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. (LOSS)/EARNINGS PER SHARE
Three Months Ended March 31,
Dollars in millions, except per share data20242023
Net (loss)/earnings attributable to BMS
$(11,911)$2,262 
Weighted-average common shares outstanding – basic2,023 2,099 
Incremental shares attributable to share-based compensation plans— 14 
Weighted-average common shares outstanding – diluted2,023 2,113 
(Loss)/Earnings per common share
Basic$(5.89)$1.08 
Diluted(5.89)1.07 

The total number of potential shares of common stock excluded from the diluted (loss)/earnings per common share computation because of the antidilutive impact was 46 million for the three months ended March 31, 2024 and not material for the three months ended March 31, 2023.

15

Note 9. FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS

Financial assets and liabilities measured at fair value on a recurring basis are summarized below:
March 31, 2024December 31, 2023
Dollars in millionsLevel 1Level 2Level 3Level 1Level 2Level 3
Cash and cash equivalents
Money market and other securities$— $6,146 $— $— $8,489 $— 
Marketable debt securities
Certificates of deposit— 203 — — 609 — 
Commercial paper— 15 — — 92 — 
Corporate debt securities— 485 — — 460 — 
U.S. Treasury securities— 4 — — 19 — 
Derivative assets— 335 — — 219 — 
Equity investments331 231 — 318 141 — 
Derivative liabilities— 126 — — 160 — 
Contingent consideration liability
Contingent value rights(a)
2 — 248 4 — — 
Other acquisition related contingent consideration$— $— $— $— $— $8 
(a)    Includes the fair value of contingent value rights associated with the Mirati acquisition as further described in —Note 4. Acquisitions, Divestitures, Licensing and Other Arrangements.

As further described in "Item 8. Financial Statements and Supplementary Data—Note 9. Financial Instruments and Fair Value Measurements" in the Company's 2023 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 $123 million as of March 31, 2024 and $44 million as of December 31, 2023.

Marketable Debt Securities

The amortized cost for marketable debt securities approximates its fair value and these securities mature within five years as of March 31, 2024, and four years as of December 31, 2023.

Equity Investments

The following summarizes the carrying amount of equity investments:
Dollars in millionsMarch 31,
2024		December 31,
2023
Equity investments with readily determinable fair values$562 $459 
Equity investments without readily determinable fair values713 698 
Limited partnerships and other equity method investments584 542 
Total equity investments$1,859 $1,699 

16

The following summarizes the activity related to equity investments. Changes in fair value of equity investments are included in Other (income)/expense, net.
Three Months Ended March 31,
Dollars in millions20242023
Equity investments with readily determinable fair values
Net (gain)/loss recognized
$(86)$141 
Less: net (gain)/loss recognized on investments sold
2 (1)
Net unrealized (gain)/loss recognized on investments still held
(88)140 
Equity investments without readily determinable fair values
Upward adjustments(10)(5)
Impairments and downward adjustments25 — 
Equity in net (income)/loss of affiliates
(31)20 
Total equity investment (gains)/losses
$(102)$155 

Cumulative upwards adjustments and cumulative impairments and downward adjustments based on observable price changes in equity investments without readily determinable fair values still held as of March 31, 2024 were $197 million and $90 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, third party 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 March 31, 2024, assuming market rates remain constant through contract maturities, we expect to reclassify pre-tax gains of $55 million into Cost of products sold for our foreign exchange contracts out of AOCL during the next 12 months. The notional amount of outstanding foreign currency exchange contracts was primarily $4.2 billion for the euro contracts and $1.1 billion for Japanese yen contracts as of March 31, 2024.

BMS also enters into cross-currency swap contracts to hedge exposure to foreign currency exchange rate risk associated with its long-term debt denominated in euros. These contracts convert interest payments and principal repayment of the long-term debt to U.S. dollars from euros and are designated as cash flow hedges. The unrealized gains and losses on these contracts are reported in AOCL and reclassified to Other (income)/expense, net, in the same periods during which the hedged debt affects earnings. The notional amount of cross-currency swap contracts associated with long-term debt denominated in euros was $1.2 billion as of March 31, 2024.

In January 2024, we entered into forward interest rate contracts of a total notional value of $5.0 billion to hedge future interest rate risk associated with the unsecured senior notes issued in February 2024. The forward interest rate contracts were designated as cash flow hedges and terminated upon the issuance of the unsecured senior notes. The $131 million gain on the transaction was included in Other Comprehensive (Loss)/Income and will be amortized as a reduction to interest expense over the term of the related debt. Amounts expected to be recognized during the subsequent 12 months on forward interest rate contracts are not material.

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.

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Net Investment Hedges

Cross-currency swap contracts and foreign currency forward contracts of $1.6 billion as of March 31, 2024 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 and foreign currency forward contracts was primarily attributed to the Japanese yen of $660 million and euro of $786 million as of March 31, 2024.

During the three months ended March 31, 2023, the Company de-designated its remaining net investment hedge in debt denominated in euros of €375 million. The related net investment hedge was entered into to hedge euro currency exposures of the net investment in certain foreign affiliates and was recognized in Long-term debt. The effective portion of foreign exchange gain or loss on the remeasurement of debt denominated in euros was included in the foreign currency translation component of AOCL with the related offset in Long-term debt.

During the three months ended March 31, 2024, 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:
 March 31, 2024
December 31, 2023
Asset(a)
Liability(b)
Asset(a)
Liability(b)
Dollars in millionsNotionalFair ValueNotionalFair ValueNotionalFair ValueNotionalFair Value
Designated as cash flow hedges
Foreign currency exchange contracts
$5,613 $169 $840 $(16)$4,772 $130 $1,971 $(66)
Cross-currency swap contracts583 37 627 (3)1,210 50 — — 
Designated as net investment hedges
Foreign currency exchange contracts
749 18 26 — — — 215 (8)
Cross-currency swap contracts396 9 438 (25)— — 747 (43)
Designated as fair value hedges
Interest rate swap contracts500 — 3,755 (20)2,500 3 1,755 (14)
Not designated as hedges
Foreign currency exchange contracts2,837 92 2,486 (62)906 20 1,250 (29)
Total return swap contracts (c)
$440 $10 $— $— $401 $16 $— $— 
(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.

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The following table summarizes the financial statement classification and amount of (gain)/loss recognized on hedges:
Three Months Ended March 31, 2024Three Months Ended March 31, 2023
Dollars in millionsCost of products soldOther (income)/expense, netCost of products soldOther (income)/expense, net
Foreign currency exchange contracts$(45)$(13)$(120)$(16)
Cross-currency swap contracts— 29 — (23)
Interest rate swap contracts— 3 — (3)
Forward interest rate contracts
$— $(1)$— $— 
The following table summarizes the effect of derivative and non-derivative instruments designated as hedges in Other comprehensive income:
Three Months Ended March 31,
Dollars in millions20242023
Derivatives designated as cash flow hedges
Foreign exchange contracts gain/(loss):
Recognized in Other comprehensive (loss)/income
$139 $(7)
Reclassified to Cost of products sold(45)(120)
Cross-currency swap contracts gain/(loss):
Recognized in Other comprehensive (loss)/income
(16)(6)
Reclassified to Other (income)/expense, net31 (13)
Forward interest rate contract gain/(loss):
  Recognized in Other comprehensive (loss)/income
131 — 
Reclassified to Other (income)/expense, net(1)— 
Derivatives designated as net investment hedges
Cross-currency swap contracts gain/(loss):
Recognized in Other comprehensive (loss)/income
27 1 
Foreign exchange contracts gain/(loss):
Recognized in Other comprehensive (loss)/income
23 — 
Non-derivatives designated as net investment hedges
Non-U.S. dollar borrowings gain/(loss):
Recognized in Other comprehensive (loss)/income
$— $(10)

Note 10. FINANCING ARRANGEMENTS

Short-term debt obligations include:
Dollars in millionsMarch 31,
2024		December 31,
2023
Commercial paper borrowings
$2,991 $— 
Non-U.S. short-term debt obligations164 170 
Current portion of Long-term debt2,873 2,873 
Other162 76 
Total$6,190 $3,119 
BMS may issue a maximum of $7.0 billion of unsecured notes with maturities of not more than 365 days from the date of issuance under its commercial paper program. The weighted-average effective borrowing rate on the outstanding commercial paper borrowings was 5.38% as of March 31, 2024. In April 2024, $2.7 billion of commercial paper borrowings were repaid.
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Long-term debt and the current portion of Long-term debt include:
Dollars in millionsMarch 31,
2024		December 31,
2023
Principal value$51,854 $38,886 
Adjustments to principal value:
Fair value of interest rate swap contracts(20)(11)
Unamortized basis adjustment from swap terminations79 82 
Unamortized bond discounts and issuance costs(412)(303)
Unamortized purchase price adjustments of Celgene debt859 872 
Total$52,360 $39,526 
Current portion of Long-term debt$2,873 $2,873 
Long-term debt49,487 36,653 
Total$52,360 $39,526 

The fair value of Long-term debt was $49.2 billion as of March 31, 2024 and $36.7 billion as of December 31, 2023 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 three months ended March 31, 2024, BMS issued an aggregate principal amount of $13.0 billion of unsecured senior notes ("2024 Senior Unsecured Notes") with proceeds, net of discount and loan issuance costs, of $12.9 billion, consisting of:
Principal Amount
(in millions)
Floating rate notes due 2026(a)
$500 
4.950% Notes due 2026
1,000 
4.900% Notes due 2027
1,000 
4.900% Notes due 2029
1,750 
5.100% Notes due 2031
1,250 
5.200% Notes due 2034
2,500 
5.500% Notes due 2044
500 
5.550% Notes due 2054
2,750 
5.650% Notes due 2064
1,750 
Total$13,000 
(a)    As of March 31, 2024, floating rate equals SOFR+0.49%.

The Company used the net proceeds from this offering to partially fund the acquisitions of RayzeBio and Karuna (see "—Note 4. Acquisitions, Divestitures, Licensing and Other Arrangements" for further information) and used the remaining net proceeds for general corporate purposes. In connection with the issuance of the 2024 Senior Unsecured Notes, the Company terminated the $10.0 billion 364-day senior unsecured delayed draw term loan facility, which was entered into in February 2024 to provide bridge financing for the RayzeBio and Karuna acquisitions.

During the three months ended March 31, 2023, $1.6 billion of debt matured and was repaid including $750 million of 2.750% Notes and $890 million of 3.250% Notes.

Interest payments were $308 million and $324 million for the three months ended March 31, 2024 and 2023, respectively, net of amounts related to interest rate swap contracts.

Credit Facilities

As of March 31, 2024, BMS had a five-year $5.0 billion revolving credit facility expiring in January 2029, extendable annually by one year with the consent of the lenders and a $2.0 billion 364-day revolving credit facility. The facilities provide for customary terms and conditions with no financial covenants and are used to provide backup liquidity for our commercial paper borrowings. No borrowings were outstanding under the revolving credit facilities as of March 31, 2024 and December 31, 2023.

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Note 11. RECEIVABLES
Dollars in millionsMarch 31,
2024		December 31,
2023
Trade receivables$9,448 $9,551 
Less: charge-backs and cash discounts(598)(646)
Less: allowance for expected credit loss(24)(23)
Net trade receivables8,826 8,882 
Alliance, royalties, VAT and other1,621 2,039 
Receivables$10,447 $10,921 

Non-U.S. receivables sold on a nonrecourse basis were $229 million and $239 million for the three months ended March 31, 2024 and 2023, respectively. Receivables from the three largest customers in the U.S. represented 72% of total trade receivables as of March 31, 2024 and December 31, 2023.

Note 12. INVENTORIES
Dollars in millionsMarch 31,
2024		December 31,
2023
Finished goods$885 $663 
Work in process2,496 2,430 
Raw and packaging materials555 475 
Total inventories$3,936 $3,568 
Inventories$2,985 $2,662 
Other non-current assets951 906 

Note 13. PROPERTY, PLANT AND EQUIPMENT
Dollars in millionsMarch 31,
2024		December 31,
2023
Land$162 $162 
Buildings6,546 6,495 
Machinery, equipment and fixtures3,772 3,717 
Construction in progress1,213 1,075 
Gross property, plant and equipment11,693 11,449 
Less accumulated depreciation(4,943)(4,803)
Property, plant and equipment$6,750 $6,646 
Depreciation expense was $155 million and $146 million for the three months ended March 31, 2024 and 2023, 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, 2023$21,169 
Acquisitions (Note 4)
580 
Currency translation and other adjustments(11)
Balance at March 31, 2024
$21,738 

Other Intangible Assets

Other intangible assets consisted of the following:

Estimated
Useful Lives		March 31, 2024December 31, 2023
Dollars in millions
Gross carrying amountsAccumulated amortizationOther intangible assets, net Gross carrying amountsAccumulated amortizationOther intangible assets, net
R&D technology(a)
6 years
$1,980 $(28)$1,952 $— $— $— 
Acquired marketed product rights(a)
3 – 15 years
63,871 (42,514)21,357 63,076 (40,184)22,892 
Capitalized software
3 – 10 years
1,545 (1,059)486 1,497 (1,027)470 
IPRD(a)
8,965 — 8,965 3,710 — 3,710 
Total$76,361 $(43,601)$32,760 $68,283 $(41,211)$27,072 
(a)    Includes assets acquired in connection with Mirati and RayzeBio acquisitions, as further described in "—Note 4. Acquisitions, Divestitures, Licensing and Other Arrangements."

Amortization expense of Other intangible assets was $2.4 billion and $2.3 billion during the three months ended March 31, 2024 and 2023, respectively.

An IPRD impairment charge of $20 million was included in Research and development expenses during the three months ended March 31, 2023.

Note 15. SUPPLEMENTAL FINANCIAL INFORMATION
Dollars in millionsMarch 31,
2024		December 31, 2023
Income taxes$3,205 $3,927 
Research and development796 723 
Contract assets408 416 
Restricted cash(a)
2 55 
Other1,156 786 
Other current assets$5,567 $5,907 

Dollars in millionsMarch 31,
2024		December 31, 2023
Equity investments (Note 9)$1,859 $1,699 
Operating leases1,436 1,390 
Inventories951 906 
Pension and postretirement290 284 
Research and development407 413 
Restricted cash(a)
2 — 
Receivables and convertible notes
659 436 
Other420 242 
Other non-current assets$6,024 $5,370 
(a)    Cash is restricted when withdrawal or general use is contractually or legally restricted. As of March 31, 2023, restricted cash of $53 million was included in Cash, cash equivalents and restricted cash in the consolidated statement of cash flows.

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Dollars in millionsMarch 31,
2024		December 31, 2023
Rebates and discounts$6,967 $7,680 
Income taxes1,487 1,371 
Karuna equity awards (Note 4)
1,426 — 
Employee compensation and benefits611 1,291 
Research and development1,256 1,257 
Dividends1,216 1,213 
Interest546 349 
Royalties371 465 
Operating leases169 162 
Other2,044 2,096 
Other current liabilities$16,093 $15,884 

Dollars in millionsMarch 31,
2024		December 31, 2023
Income taxes $3,360 $3,288 
Pension and postretirement477 480