Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2016shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | BRISTOL MYERS SQUIBB CO |
Entity Central Index Key | 14,272 |
Entity Well-known Seasoned Issuer | Yes |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 1,670,858,535 |
Document Type | 10-Q |
Document Period End Date | Jun. 30, 2016 |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | Q2 |
Current Fiscal Year End Date | --12-31 |
Amendment Flag | false |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Statement [Abstract] | ||||
Net product sales | $ 4,432 | $ 3,572 | $ 8,396 | $ 6,631 |
Alliance and other revenues | 439 | 591 | 866 | 1,573 |
Total revenues | 4,871 | 4,163 | 9,262 | 8,204 |
Cost of products sold | 1,206 | 1,013 | 2,258 | 1,860 |
Marketing, selling and administrative | 1,238 | 1,135 | 2,306 | 2,164 |
Research and development | 1,266 | 1,856 | 2,402 | 2,872 |
Other (income)/expense | (454) | 107 | (974) | (192) |
Total Expenses | 3,256 | 4,111 | 5,992 | 6,704 |
Earnings Before Income Taxes | 1,615 | 52 | 3,270 | 1,500 |
Provision for Income Taxes | 427 | 162 | 876 | 411 |
Net Earnings/(Loss) | 1,188 | (110) | 2,394 | 1,089 |
Net Earnings Attributable to Noncontrolling Interest | 22 | 20 | 33 | 33 |
Net Earnings/(Loss) Attributable to BMS | $ 1,166 | $ (130) | $ 2,361 | $ 1,056 |
Earnings/(Loss) per Common Share | ||||
Basic | $ 0.70 | $ (0.08) | $ 1.41 | $ 0.63 |
Diluted | 0.69 | (0.08) | 1.41 | 0.63 |
Cash dividends declared per common share | $ 0.38 | $ 0.37 | $ 0.76 | $ 0.74 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
COMPREHENSIVE INCOME | ||||
Net Earnings/(Loss) | $ 1,188 | $ (110) | $ 2,394 | $ 1,089 |
Other Comprehensive Income/(Loss), net of taxes and reclassifications to earnings [Abstract] | ||||
Derivatives qualifying as cash flow hedges | (44) | (9) | (130) | (3) |
Pension and postretirement benefits | (124) | 306 | (285) | 262 |
Available-for-sale securities | 41 | (22) | 54 | (6) |
Foreign currency translation | 16 | (32) | 25 | (1) |
Other Comprehensive Income/(Loss) | (111) | 243 | (336) | 252 |
Comprehensive Income | 1,077 | 133 | 2,058 | 1,341 |
Comprehensive Income Attributable to Noncontrolling Interest | 22 | 20 | 33 | 33 |
Comprehensive Income Attributable to BMS | $ 1,055 | $ 113 | $ 2,025 | $ 1,308 |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Current Assets: | ||
Cash and cash equivalents | $ 2,934 | $ 2,385 |
Marketable Securities, Current | 1,717 | 1,885 |
Receivables | 5,622 | 4,299 |
Inventories | 1,437 | 1,221 |
Prepaid expenses and other | 588 | 625 |
Total Current Assets | 12,298 | 10,415 |
Property, plant and equipment | 4,597 | 4,412 |
Goodwill | 6,875 | 6,881 |
Other intangible assets | 1,379 | 1,419 |
Deferred income taxes | 3,389 | 2,844 |
Marketable Securities, Noncurrent | 3,281 | 4,660 |
Other assets | 1,012 | 1,117 |
Total Assets | 32,831 | 31,748 |
Current Liabilities: | ||
Short-term borrowings | 155 | 139 |
Accounts payable | 1,504 | 1,565 |
Accrued liabilities | 4,880 | 4,738 |
Deferred income | 1,182 | 1,003 |
Income taxes payable | 164 | 572 |
Total Current Liabilities | 7,885 | 8,017 |
Deferred income | 586 | 586 |
Income taxes payable | 896 | 742 |
Pension and other liabilities | 1,805 | 1,429 |
Long-term debt | 6,581 | 6,550 |
Total Liabilities | 17,753 | 17,324 |
Commitments and contingencies (Note 18) | ||
Bristol-Myers Squibb Company Shareholders' Equity: | ||
Preferred stock, $2 convertible series, par value $1 per share: Authorized 10 million shares; 4,161 issued and outstanding in both 2016 and 2015, liquidation value of $50 per share | 0 | 0 |
Common stock, par value of $0.10 per share: Authorized 4.5 billion shares; 2.2 billion issued in both 2016 and 2015 | 221 | 221 |
Capital in excess of par value of stock | 1,594 | 1,459 |
Accumulated other comprehensive loss | (2,804) | (2,468) |
Retained earnings | 32,706 | 31,613 |
Less cost of treasury stock - 537 million common shares in 2016 and 539 million in 2015 | (16,799) | (16,559) |
Total Bristol-Myers Squibb Company Shareholders' Equity | 14,918 | 14,266 |
Noncontrolling interest | 160 | 158 |
Total Equity | 15,078 | 14,424 |
Total Liabilities and Equity | $ 32,831 | $ 31,748 |
CONSOLIDATED BALANCE SHEETS (U5
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares | Jun. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Preferred stock, $2 convertible series, par value | $ 1 | |
Preferred stock, $2 convertible series, shares authorized | 10,000,000 | |
Preferred stock, $2 convertible series, shares issued | 4,161 | 4,161 |
Preferred stock, $2 convertible series, shares outstanding | 4,161 | 4,161 |
Preferred stock, $2 convertible series, liquidation value, per share | $ 50 | |
Common stock, par value | $ 0.1 | |
Common stock, shares authorized | 4,500,000,000 | |
Common stock, shares issued | 2,200,000,000 | 2,200,000,000 |
Treasury stock, shares | 537,000,000 | 539,000,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash Flows From Operating Activities: | ||
Net Earnings | $ 2,394 | $ 1,089 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization, net | 155 | 195 |
Deferred income taxes | (317) | (59) |
Stock-based compensation | 101 | 113 |
Impairment charges | 68 | 20 |
Pension settlements and amortization | 83 | 110 |
Divestiture gains and royalties | (927) | (325) |
Asset acquisition charges | 239 | 806 |
Other adjustments | (24) | 133 |
Changes in operating assets and liabilities: | ||
Receivables | (852) | (267) |
Inventories | (111) | 162 |
Accounts payable | (36) | (618) |
Deferred income | 263 | (162) |
Income taxes payable | (515) | 24 |
Other | (496) | (524) |
Net Cash Provided by Operating Activities | 25 | 697 |
Cash Flows From Investing Activities: | ||
Sale and maturities of marketable securities | 2,794 | 1,808 |
Purchase of marketable securities | (1,195) | (1,472) |
Capital expenditures | (503) | (301) |
Divestiture and other proceeds | 1,003 | 294 |
Acquisition and other payments | (267) | (855) |
Net Cash Provided by/(Used in) Investing Activities | 1,832 | (526) |
Cash Flows From Financing Activities: | ||
Short-term borrowings, net | 17 | 167 |
Issuance of long-term debt | 1,268 | |
Repayment of long-term debt | (1,957) | |
Interest rate swap contract terminations | 42 | (2) |
Issuances of common stock | 132 | 201 |
Repurchase of common stock | (231) | |
Dividends | (1,276) | (1,242) |
Net Cash Used in Financing Activities | (1,316) | (1,565) |
Effect of Exchange Rates on Cash and Cash Equivalents | 8 | 22 |
Increase/(Decrease) in Cash and Cash Equivalents | 549 | (1,372) |
Cash and Cash Equivalents at Beginning of Period | 2,385 | 5,571 |
Cash and Cash Equivalents at End of Period | $ 2,934 | $ 4,199 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis Of Presentation [Text Block] | BASIS OF PRESENTATION AND RECENTLY ISSUED ACCOUNTING STANDARDS Bristol-Myers Squibb Company (which may be referred to as Bristol-Myers Squibb, BMS or the Company) prepared these unaudited consolidated financial statements following the requirements of the Securities and Exchange Commission (SEC) and United States (U.S.) generally accepted accounting principles (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 Form 10-Q, which include all adjustments necessary for a fair presentation of the financial position at June 30, 2016 and December 31, 2015 , the results of operations for the three and six months ended June 30, 2016 and 2015 , and cash flows for the six months ended June 30, 2016 and 2015 . All intercompany balances and transactions have been eliminated. These financial statements and the related notes should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2015 included in the Annual Report on Form 10-K. 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 and assumptions. The most significant assumptions are employed in estimates used in determining the fair value and potential impairment of intangible assets; sales rebate and return accruals; legal contingencies; income taxes; estimated selling prices used in multiple element arrangements; and pension and postretirement benefits. Actual results may differ from estimates. Certain prior period amounts were reclassified to conform to the current period presentation. The reclassifications provide a more concise financial statement presentation and additional information is disclosed in the notes if material. Prior Presentation Current Presentation Consolidated Statements of Earnings Advertising and product promotion Included in Marketing, selling and administrative expenses Consolidated Balance Sheets Assets held-for-sale Included in Prepaid expenses and other Accrued expenses Combined as Accrued liabilities Accrued rebates and returns Dividends payable Pension, postretirement and postemployment liabilities Combined as Pension and other liabilities Other liabilities Consolidated Statements of Cash Flows Net earnings attributable to noncontrolling interest Included in Other adjustments Divestiture gains and royalties included in Other adjustments Divestiture gains and royalties Asset acquisition charges included in Other adjustments Asset acquisition charges In June 2016 , the Financial Accounting Standards Board (FASB) issued amended guidance for the measurement of credit losses on financial instruments. Entities will be required to use a forward-looking estimated loss model. Available-for-sale debt security credit losses will be recognized as allowances rather than a reduction in amortized cost. The guidance is effective beginning with interim periods in 2020 with early adoption permitted in 2019 on a modified retrospective approach. The Company is assessing the potential impact of the new standard. In March 2016 , the FASB issued amended guidance for share-based payment transactions. Excess tax benefits and deficiencies will be recognized in the consolidated statement of earnings rather than capital in excess of par value of stock on a prospective basis. A policy election will be available to account for forfeitures as they occur, with the cumulative effect of the change recognized as an adjustment to retained earnings at the date of adoption. Excess tax benefits within the consolidated statement of cash flows will be presented as an operating activity (prospective or retrospective application) and cash payments to tax authorities in connection with shares withheld for statutory tax withholding requirements will be presented as a financing activity (retrospective application). The guidance is effective beginning with interim periods in 2017 with early adoption permitted. The Company is assessing the potential impact of the new standard. In February 2016 , the FASB issued amended guidance on lease accounting. The amended guidance requires the recognition of a right-of-use asset and a lease liability, initially measured at the present value of the lease payments for leases with a term longer than 12 months. The guidance is effective beginning with interim periods in 2019 with early adoption permitted on a modified retrospective approach. The Company is assessing the potential impact of the new standard. In January 2016 , the FASB issued amended guidance for the recognition, measurement, presentation and disclosures of financial instruments effective January 1, 2018 with early adoption not permitted. The new guidance requires that fair value adjustments for equity securities with readily determinable fair values currently classified as available-for-sale be reported through earnings. The new guidance also requires a qualitative impairment assessment for equity investments without a readily determinable fair value and a charge through earnings if an impairment exists. The Company is assessing the potential impact of the new standard. In May 2014 , the FASB issued a new standard related to revenue recognition, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The new standard will replace most of the existing revenue recognition standards in U.S. GAAP when it becomes effective on January 1, 2018. Early adoption is permitted no earlier than 2017. The new standard can be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of the change recognized at the date of the initial application in retained earnings. The Company is assessing the potential impact of the new standard and has not yet selected a transition method. |
BUSINESS SEGMENT INFORMATION
BUSINESS SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Business Segment Information [Text Block] | 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. Segment information is consistent with the financial information regularly reviewed by the chief executive officer for purposes of evaluating performance, allocating resources, setting incentive compensation targets and planning and forecasting future periods. Product revenues were as follows: Three Months Ended June 30, Six Months Ended June 30, Dollars in Millions 2016 2015 2016 2015 Oncology Empliciti (elotuzumab) $ 34 $ — $ 62 $ — Erbitux* (cetuximab) — 169 — 334 Opdivo (nivolumab) 840 122 1,544 162 Sprycel (dasatinib) 451 405 858 780 Yervoy (ipilimumab) 241 296 504 621 Cardiovascular Eliquis (apixaban) 777 437 1,511 792 Immunoscience Orencia (abatacept) 593 461 1,068 861 Virology Baraclude (entecavir) 299 343 590 683 Hepatitis C Franchise 546 479 973 743 Reyataz (atazanavir sulfate) Franchise 247 303 468 597 Sustiva (efavirenz) Franchise 271 317 544 607 Neuroscience Abilify* (aripiprazole) 35 107 68 661 Mature Products and All Other 537 724 1,072 1,363 Total Revenues $ 4,871 $ 4,163 $ 9,262 $ 8,204 * Indicates brand names of products which are trademarks not owned or wholly owned by BMS. Specific trademark ownership information is included at the end of this quarterly report on Form 10-Q. The composition of total revenues was as follows: Three Months Ended June 30, Six Months Ended June 30, Dollars in Millions 2016 2015 2016 2015 Net product sales $ 4,432 $ 3,572 $ 8,396 $ 6,631 Alliance revenues 418 552 827 1,507 Other revenues 21 39 39 66 Total Revenues $ 4,871 $ 4,163 $ 9,262 $ 8,204 |
ALLIANCES
ALLIANCES | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Alliances [Text Block] | 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 are exposed to significant risks and rewards depending on the commercial success of the activities. BMS may either in-license intellectual property owned by the other party or out-license its intellectual property to the other party. These arrangements also typically include research, development, manufacturing and/or commercial activities and can cover a single investigational compound or commercial product or multiple compounds and/or products in various life cycle stages. The rights and obligations of the parties can be global or limited to geographic regions. We refer to these collaborations as alliances and our partners as alliance partners. Products sold through alliance arrangements in certain markets include Empliciti , Erbitux* , Opdivo , Sprycel , Yervoy , Eliquis , Orencia , Sustiva ( Atripla* ), Abilify* and certain mature and other brands. Selected financial information pertaining to our 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 2016 2015 2016 2015 Revenues from alliances: Net product sales $ 1,335 $ 1,228 $ 2,566 $ 2,222 Alliance revenues 418 552 827 1,507 Total Revenues $ 1,753 $ 1,780 $ 3,393 $ 3,729 Payments to/(from) alliance partners: Cost of products sold $ 495 $ 423 $ 971 $ 812 Marketing, selling and administrative (8 ) (3 ) (7 ) 22 Research and development (3 ) 66 30 188 Other (income)/expense (451 ) (148 ) (704 ) (449 ) Noncontrolling interest, pre-tax 8 23 10 28 Selected Alliance Balance Sheet information: Dollars in Millions June 30, December 31, Receivables - from alliance partners $ 1,187 $ 958 Accounts payable - to alliance partners 549 542 Deferred income from alliances 1,426 1,459 Specific information pertaining to each of our significant alliances is discussed in our 2015 Form 10-K, including their nature and purpose, the significant rights and obligations of the parties and specific accounting policy elections. |
ACQUISITIONS AND DIVESTITURES A
ACQUISITIONS AND DIVESTITURES ACQUISITIONS AND DIVESTITURES | 6 Months Ended |
Jun. 30, 2016 | |
Acquisitions and Divestitures [Abstract] | |
Acquisitions and divestitures [Text Block] | ACQUISITIONS AND DIVESTITURES In July 2016 , BMS acquired all of the outstanding shares of Cormorant Pharmaceuticals (Cormorant), a private pharmaceutical company focused on the development of therapies for cancer and rare diseases. The acquisition provides BMS with full rights to Cormorant's lead candidate HuMax-IL8, a Phase I/II monoclonal antibody that represents a potentially complementary immuno-oncology mechanism of action to T-cell directed antibodies and co-stimulatory molecules. The consideration includes an upfront payment of $35 million and contingent development and regulatory milestone payments of up to $485 million . The transaction is expected to be accounted for as an asset acquisition with essentially all value allocated to HuMax-IL8 which will be included in research and development expense. In April 2016 , BMS acquired all of the outstanding shares of Padlock Therapeutics, Inc. (Padlock), a private biotechnology company dedicated to creating new medicines to treat destructive autoimmune diseases. The acquisition provides BMS with full rights to Padlock’s Protein/Peptidyl Arginine Deiminase (PAD) inhibitor discovery program focused on the development of potentially transformational treatment approaches for patients with rheumatoid arthritis. Padlock’s PAD discovery program may have additional utility in treating systemic lupus erythematosus and other autoimmune diseases. The consideration includes an upfront payment of $150 million and contingent development and regulatory milestone payments of up to $450 million . No significant Padlock processes were acquired, therefore the transaction was accounted for as an asset acquisition because Padlock was determined not to be a business as that term is defined in ASC 805 - Business Combinations. The consideration was allocated to the PAD discovery program resulting in $139 million of research and development expenses and to net operating losses and tax credit carryforwards resulting in $11 million of deferred tax assets. In May 2016 , BMS sold the business comprising an alliance with Reckitt Benckiser Group plc (Reckitt) including several over-the-counter products sold primarily in Mexico and Brazil (Reckitt business). Reckitt exercised its option to acquire the business, including a manufacturing facility and related employees, for $317 million , resulting in a gain of $277 million . In February 2016 , BMS sold its investigational HIV medicines business to ViiV Healthcare which includes a number of programs at different stages of discovery, preclinical and clinical development. The transaction excluded BMS's HIV marketed medicines. BMS will provide certain R&D and other services over a transitional period. In February 2016 , BMS received an upfront payment of $350 million , resulting in a gain of $269 million . BMS will also receive from ViiV Healthcare contingent development and regulatory milestone payments of up to $1.1 billion , sales-based milestone payments of up to $4.3 billion and future tiered royalties if the products are approved and commercialized. The assets held-for-sale from the Reckitt and ViiV Healthcare businesses were $134 million at December 31, 2015 and are included in prepaid expenses and other. The amount consisted primarily of allocated goodwill relating to the businesses. The allocation of goodwill was determined using the relative fair value of the applicable businesses to the Company's reporting unit. Revenues and pretax earnings related to these businesses were not material in 2016 and 2015 (excluding the divestiture gains). |
OTHER (INCOME)_EXPENSE
OTHER (INCOME)/EXPENSE | 6 Months Ended |
Jun. 30, 2016 | |
Other Nonoperating Income (Expense) [Abstract] | |
Other (Income)/Expense [Text Block] | OTHER (INCOME)/EXPENSE Three Months Ended June 30, Six Months Ended June 30, Dollars in Millions 2016 2015 2016 2015 Interest expense $ 42 $ 49 $ 85 $ 100 Investment income (25 ) (26 ) (49 ) (56 ) Provision for restructuring 18 28 22 40 Litigation and other settlements 6 4 49 16 Equity in net income of affiliates (20 ) (22 ) (46 ) (48 ) Divestiture gains (283 ) (8 ) (553 ) (162 ) Royalties and licensing income (167 ) (97 ) (421 ) (195 ) Transition and other service fees (74 ) (27 ) (127 ) (54 ) Pension charges 25 36 47 63 Out-licensed intangible asset impairment — — 15 13 Equity investment impairment 45 — 45 — Written option adjustment — — — (36 ) Loss on debt redemption — 180 — 180 Other (21 ) (10 ) (41 ) (53 ) Other (income)/expense $ (454 ) $ 107 $ (974 ) $ (192 ) |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | INCOME TAXES Three Months Ended June 30, Six Months Ended June 30, Dollars in Millions 2016 2015 2016 2015 Earnings Before Income Taxes $ 1,615 $ 52 $ 3,270 $ 1,500 Provision for Income Taxes 427 162 876 411 Effective tax rate 26.4 % 311.5 % 26.8 % 27.4 % The effective tax rate is lower than the U.S. statutory rate of 35% primarily attributable to undistributed earnings of certain foreign subsidiaries in low tax jurisdictions that have been considered or are expected to be indefinitely reinvested offshore. These undistributed earnings primarily relate to operations in Switzerland, Ireland and Puerto Rico. If these undistributed earnings are repatriated to the U.S. in the future, or if it were determined that such earnings are to be remitted in the foreseeable future, additional tax provisions would be required. Due to complexities in the tax laws and assumptions that would have to be made, it is not practicable to estimate the amounts of income taxes that would have to be provided. Reforms to U.S. tax laws related to foreign earnings have been proposed and if adopted, may increase taxes, which could reduce the results of operations and cash flows. BMS operates under a favorable tax grant in Puerto Rico not scheduled to expire prior to 2023. The jurisdictional tax rates and other tax impacts attributed to research and development charges, divestiture transactions and other discrete items increased the effective tax rate by 4.0% and 5.5% in the six months ended June 30, 2016 and 2015 , respectively. The taxes attributed to these items were impacted by non-deductible R&D charges for Padlock and Flexus Biosciences, Inc. (Flexus) in 2016 and Flexus in 2015 , higher non-deductible goodwill allocated to business divestitures in 2016 and higher valuation allowances attributed to capital loss carryforwards released in 2015 . The tax impact for discrete items are reflected immediately and are not considered in estimating the annual effective tax rates. The effective tax rate for the second quarter of 2015 was primarily impacted by the $800 million non-deductible R&D charge for the acquisition of Flexus. To a lesser extent, unfavorable earnings mix between high and low tax jurisdictions and the R&D tax credit also impacted the effective tax rates. The R&D tax credit legislation was permanently extended in December 2015 and was included in estimating the annual effective tax rate in 2016 . The R&D tax credit was not extended as of June 30, 2015 , therefore the tax credit was not considered in estimating the annual effective tax rate in 2015 . BMS is currently under examination by a number of tax authorities which have 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. It is reasonably possible that the total amount of unrecognized tax benefits at June 30, 2016 could decrease in the range of approximately $270 million to $330 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 also reasonably possible that new issues will be raised by tax authorities which may require adjustments to the amount of unrecognized tax benefits; however, an estimate of such adjustments cannot reasonably be made at this time. |
EARNINGS_(LOSS) PER SHARE
EARNINGS/(LOSS) PER SHARE | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | EARNINGS/(LOSS) PER SHARE Three Months Ended June 30, Six Months Ended June 30, Amounts in Millions, Except Per Share Data 2016 2015 2016 2015 Net Earnings/(Loss) Attributable to BMS used for Basic and Diluted EPS Calculation $ 1,166 $ (130 ) $ 2,361 $ 1,056 Weighted-average common shares outstanding – basic 1,670 1,667 1,670 1,665 Contingently convertible debt common stock equivalents — — — 1 Incremental shares attributable to share-based compensation plans 9 — 9 11 Weighted-average common shares outstanding – diluted 1,679 1,667 1,679 1,677 Earnings/(Loss) per Common Share: Basic $ 0.70 $ (0.08 ) $ 1.41 $ 0.63 Diluted $ 0.69 $ (0.08 ) $ 1.41 $ 0.63 Contingently convertible debt common stock equivalents and incremental shares attributable to share-based compensation plans of 10 million were excluded from the per share calculation for the three months ended June 30, 2015 because of the net loss in that period. |
FINANCIAL INSTRUMENTS AND FAIR
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Financial Instruments [Text Block] | FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS Financial assets and liabilities measured at fair value on a recurring basis are summarized below: June 30, 2016 December 31, 2015 Dollars in Millions Level 1 Level 2 Total Level 1 Level 2 Total Cash and cash equivalents - Money market and other securities $ — $ 2,425 $ 2,425 $ — $ 1,825 $ 1,825 Marketable securities: Certificates of deposit — 438 438 — 804 804 Commercial paper — 100 100 — — — Corporate debt securities — 4,358 4,358 — 5,638 5,638 Equity funds — 95 95 — 92 92 Fixed income funds — 7 7 — 11 11 Derivative assets: Interest rate swap contracts — 14 14 — 31 31 Forward starting interest rate swap contracts — — — — 15 15 Foreign currency forward contracts — 36 36 — 50 50 Equity investments 34 — 34 60 — 60 Derivative liabilities: Interest rate swap contracts — — — — (1 ) (1 ) Forward starting interest rate swap contracts — (98 ) (98 ) — (7 ) (7 ) Foreign currency forward contracts — (59 ) (59 ) — (10 ) (10 ) As further described in "Note 10. Financial Instruments and Fair Value Measurements" in our 2015 Form 10-K, our 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). There were no Level 3 financial assets or liabilities as of June 30, 2016 and December 31, 2015 . Available-for-sale Securities The following table summarizes available-for-sale securities: Dollars in Millions Amortized Gross Gross Fair Value June 30, 2016 Certificates of deposit $ 438 $ — $ — $ 438 Commercial paper 100 — — 100 Corporate debt securities 4,310 48 — 4,358 Equity investments 32 4 (2 ) 34 Total $ 4,880 $ 52 $ (2 ) $ 4,930 December 31, 2015 Certificates of deposit $ 804 $ — $ — $ 804 Corporate debt securities 5,646 15 (23 ) 5,638 Equity investments 74 10 (24 ) 60 Total $ 6,524 $ 25 $ (47 ) $ 6,502 Dollars in Millions June 30, December 31, Current marketable securities (a) $ 1,717 $ 1,885 Non-current marketable securities (b) 3,281 4,660 Other assets 34 60 Available-for-sale securities $ 5,032 $ 6,605 (a) The fair value option for financial assets was elected for investments in equity and fixed income funds. The fair value of these investments were $102 million at June 30, 2016 and $103 million at December 31, 2015 and were included in current marketable securities. (b) All non-current marketable securities mature within five years as of June 30, 2016 and December 31, 2015 . Qualifying Hedges and Non-Qualifying Derivatives The following table summarizes the fair value of outstanding derivatives: June 30, 2016 December 31, 2015 Dollars in Millions Balance Sheet Location Notional Fair Value Notional Fair Value Derivatives designated as hedging instruments: Interest rate swap contracts Other assets $ 1,250 $ 14 $ 1,100 $ 31 Interest rate swap contracts Pension and other liabilities — — 650 (1 ) Forward starting interest rate swap contracts Other assets — — 500 15 Forward starting interest rate swap contracts Accrued liabilities 750 (98 ) — — Forward starting interest rate swap contracts Pension and other liabilities — — 250 (7 ) Foreign currency forward contracts Prepaid expenses and other 638 36 1,016 50 Foreign currency forward contracts Accrued liabilities 782 (55 ) 342 (5 ) Foreign currency forward contracts Pension and other liabilities 31 (1 ) — — Derivatives not designated as hedging instruments: Foreign currency forward contracts Accrued liabilities 380 (3 ) 445 (5 ) Cash Flow Hedges — The notional amount of outstanding foreign currency forward contracts was primarily attributed to the euro ( $721 million ) and Japanese yen ( $441 million ) at June 30, 2016 . Net Investment Hedges — Non-U.S. dollar borrowings of €950 million ( $1,055 million ) are designated to hedge euro currency exposures of the net investment in certain foreign affiliates. Fair Value Hedges — The notional amount of fixed-to-floating interest rate swap contracts terminated was $500 million in 2016 and $147 million in 2015 generating proceeds of $43 million in 2016 and $28 million in 2015 (including accrued interest). Debt Obligations Long-term debt includes: Dollars in Millions June 30, December 31, Principal Value $ 6,353 $ 6,339 Adjustments to Principal Value: Fair value of interest rate swap contracts 14 30 Unamortized basis adjustment from swap terminations 301 272 Unamortized bond discounts and issuance costs (87 ) (91 ) Total $ 6,581 $ 6,550 The fair value of debt was $7,455 million at June 30, 2016 and $6,909 million at December 31, 2015 valued using Level 2 inputs. Interest payments were $102 million and $124 million for the six months ended June 30, 2016 and 2015 , respectively, net of amounts related to interest rate swap contracts. The following summarizes the issuance and redemption of long-term debt obligations in 2015 (none in 2016) and related termination of interest rate swap contracts: Amounts in Millions Euro U.S. dollars Principal Value: 1.000% Euro Notes due 2025 € 575 $ 643 1.750% Euro Notes due 2035 575 643 Total € 1,150 $ 1,286 Proceeds net of discount and deferred loan issuance costs € 1,133 $ 1,268 Forward starting interest rate swap contracts terminated: Notional amount € 500 $ 559 Unrealized loss (16 ) (18 ) Six Months Ended Dollars in Millions June 30, 2015 Principal amount $ 1,624 Carrying value 1,795 Debt redemption price 1,957 Notional amount of interest rate swap contracts terminated 735 Interest rate swap contract termination payments 11 Loss on debt redemption (a) 180 (a) Including acceleration of debt issuance costs, loss on interest rate lock contract and other related fees. |
RECEIVABLES
RECEIVABLES | 6 Months Ended |
Jun. 30, 2016 | |
Accounts Receivable, Net [Abstract] | |
Receivables [Text Block] | RECEIVABLES Dollars in Millions June 30, December 31, Trade receivables $ 3,825 $ 3,070 Less allowances (140 ) (122 ) Net trade receivables 3,685 2,948 Alliance receivables 1,187 958 Prepaid and refundable income taxes 483 182 Other 267 211 Receivables $ 5,622 $ 4,299 Non-U.S. receivables sold on a nonrecourse basis were $341 million and $188 million for the six months ended June 30, 2016 and 2015 , respectively. Receivables from three pharmaceutical wholesalers in the U.S. represented 62% and 53% of total trade receivables at June 30, 2016 and December 31, 2015 , respectively. |
INVENTORIES
INVENTORIES | 6 Months Ended |
Jun. 30, 2016 | |
Inventory, Net [Abstract] | |
Inventories [Text Block] | INVENTORIES Dollars in Millions June 30, December 31, Finished goods $ 399 $ 381 Work in process 977 868 Raw and packaging materials 248 199 Total inventories $ 1,624 $ 1,448 Inventories $ 1,437 $ 1,221 Other assets 187 227 Other assets include inventory pending regulatory approval of $108 million at June 30, 2016 and $85 million at December 31, 2015 and other amounts expected to remain on-hand beyond one year. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 6 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Text Block] | PROPERTY, PLANT AND EQUIPMENT Dollars in Millions June 30, December 31, Land $ 107 $ 107 Buildings 4,700 4,515 Machinery, equipment and fixtures 3,440 3,347 Construction in progress 699 662 Gross property, plant and equipment 8,946 8,631 Less accumulated depreciation (4,349 ) (4,219 ) Property, plant and equipment $ 4,597 $ 4,412 Depreciation expense was $210 million and $258 million for the six months ended June 30, 2016 and 2015 , respectively. |
OTHER INTANGIBLE ASSETS
OTHER INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | OTHER INTANGIBLE ASSETS Dollars in Millions June 30, December 31, Licenses $ 559 $ 574 Developed technology rights 2,358 2,357 Capitalized software 1,362 1,302 In-process research and development 120 120 Gross other intangible assets 4,399 4,353 Less accumulated amortization (3,020 ) (2,934 ) Other intangible assets $ 1,379 $ 1,419 Amortization expense was $88 million and $96 million for the six months ended June 30, 2016 and 2015 , respectively. |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 6 Months Ended |
Jun. 30, 2016 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | ACCRUED LIABILITIES Dollars in Millions June 30, December 31, Accrued rebates and returns $ 1,649 $ 1,324 Employee compensation and benefits 604 904 Dividends payable 642 655 Accrued research and development 573 553 Litigation and other settlements 146 189 Royalties 170 161 Restructuring 58 89 Pension and postretirement benefits 47 47 Other 991 816 Accrued liabilities $ 4,880 $ 4,738 |
DEFERRED INCOME
DEFERRED INCOME | 6 Months Ended |
Jun. 30, 2016 | |
Deferred Revenue Disclosure [Abstract] | |
Deferred Revenue Disclosure [Text Block] | DEFERRED INCOME Dollars in Millions June 30, December 31, Alliances $ 1,426 $ 1,459 Other 342 130 Total deferred income $ 1,768 $ 1,589 Current portion $ 1,182 $ 1,003 Non-current portion 586 586 Alliances include unamortized upfront, milestone and other licensing proceeds, revenue deferrals attributed to Atripla* and undelivered elements of diabetes business divestiture proceeds. As of June 30, 2016 , other deferred income includes approximately $185 million of Opdivo product sale deferrals under an early access program in France which began in 2015. The amount of net product sales to be realized is subject to final price negotiations with the French government. Amortization of deferred income was $143 million and $159 million for the six months ended June 30, 2016 and 2015 , respectively. |
EQUITY
EQUITY | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | EQUITY Common Stock Capital in Excess of Par Value of Stock Retained Earnings Treasury Stock Noncontrolling Interest Dollars and Shares in Millions Shares Par Value Shares Cost Balance at January 1, 2015 2,208 $ 221 $ 1,507 $ 32,541 547 $ (16,992 ) $ 131 Net earnings — — — 1,056 — — 43 Cash dividends declared — — — (1,236 ) — — — Employee stock compensation plans — — (144 ) — (6 ) 341 — Debt conversion — — — — — 2 — Distributions — — — — — — (6 ) Balance at June 30, 2015 2,208 $ 221 $ 1,363 $ 32,361 541 $ (16,649 ) $ 168 Balance at January 1, 2016 2,208 $ 221 $ 1,459 $ 31,613 539 $ (16,559 ) $ 158 Net earnings — — — 2,361 — — 33 Cash dividends declared — — — (1,268 ) — — — Stock repurchase program — — — — 4 (231 ) — Employee stock compensation plans — — 135 — (6 ) (9 ) — Distributions — — — — — — (31 ) Balance at June 30, 2016 2,208 $ 221 $ 1,594 $ 32,706 537 $ (16,799 ) $ 160 Treasury stock is recognized at the cost to reacquire the shares. Shares issued from treasury are recognized utilizing the first-in first-out method. The components of other comprehensive income/(loss) were as follows: 2016 2015 Pretax Tax After tax Pretax Tax After tax Three Months Ended June 30, Derivatives qualifying as cash flow hedges: (a) Unrealized gains/(losses) $ (59 ) $ 20 $ (39 ) $ 35 $ (19 ) $ 16 Reclassified to net earnings (5 ) — (5 ) (36 ) 11 (25 ) Derivatives qualifying as cash flow hedges (64 ) 20 (44 ) (1 ) (8 ) (9 ) Pension and postretirement benefits: Actuarial gains/(losses) (233 ) 83 (150 ) 412 (145 ) 267 Amortization (b) 19 (9 ) 10 24 (9 ) 15 Curtailments and settlements (c) 25 (9 ) 16 36 (12 ) 24 Pension and postretirement benefits (189 ) 65 (124 ) 472 (166 ) 306 Available-for-sale securities: Unrealized gains/(losses) 10 (3 ) 7 (32 ) 9 (23 ) Realized losses 34 — 34 1 — 1 Available-for-sale securities (d) 44 (3 ) 41 (31 ) 9 (22 ) Foreign currency translation 20 (4 ) 16 (26 ) (6 ) (32 ) $ (189 ) $ 78 $ (111 ) $ 414 $ (171 ) $ 243 Six Months Ended June 30, Derivatives qualifying as cash flow hedges: (a) Unrealized gains/(losses) $ (185 ) $ 62 $ (123 ) $ 70 $ (30 ) $ 40 Reclassified to net earnings (9 ) 2 (7 ) (63 ) 20 (43 ) Derivatives qualifying as cash flow hedges (194 ) 64 (130 ) 7 (10 ) (3 ) Pension and postretirement benefits: Actuarial gains/(losses) (525 ) 186 (339 ) 292 (103 ) 189 Amortization (b) 36 (12 ) 24 47 (15 ) 32 Curtailments and settlements (c) 47 (17 ) 30 63 (22 ) 41 Pension and postretirement benefits (442 ) 157 (285 ) 402 (140 ) 262 Available-for-sale securities: Unrealized gains/(losses) 37 (17 ) 20 (7 ) 1 (6 ) Realized losses 34 — 34 — — — Available-for-sale securities 71 (17 ) 54 (7 ) 1 (6 ) Foreign currency translation 22 3 25 20 (21 ) (1 ) $ (543 ) $ 207 $ (336 ) $ 422 $ (170 ) $ 252 (a) Included in cost of products sold. (b) Included in cost of products sold, research and development and marketing, selling and administrative expenses. (c) Included in other (income)/expense. The accumulated balances related to each component of other comprehensive loss, net of taxes, were as follows: Dollars in Millions June 30, December 31, 2015 Derivatives qualifying as cash flow hedges $ (96 ) $ 34 Pension and other postretirement benefits (2,365 ) (2,080 ) Available-for-sale securities 31 (23 ) Foreign currency translation (374 ) (399 ) Accumulated other comprehensive loss $ (2,804 ) $ (2,468 ) |
PENSION AND POSTRETIREMENT BENE
PENSION AND POSTRETIREMENT BENEFIT PLANS | 6 Months Ended |
Jun. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefits [Text Block] | PENSION AND POSTRETIREMENT BENEFIT PLANS The net periodic benefit cost/(credit) of defined benefit pension and postretirement benefit plans includes: Three Months Ended June 30, Six Months Ended June 30, Pension Benefits Other Benefits Pension Benefits Other Benefits Dollars in Millions 2016 2015 2016 2015 2016 2015 2016 2015 Service cost – benefits earned during the year $ 7 $ 6 $ 1 $ 1 $ 13 $ 12 $ 2 $ 2 Interest cost on projected benefit obligation 49 60 2 3 100 121 5 6 Expected return on plan assets (106 ) (103 ) (6 ) (6 ) (210 ) (205 ) (12 ) (13 ) Amortization of prior service credits (1 ) (1 ) (1 ) (2 ) (2 ) (2 ) (2 ) (3 ) Amortization of net actuarial loss 21 26 — 1 40 50 — 2 Curtailments and settlements 25 36 — — 47 63 — — Special termination benefits — — — — 1 — — — Net periodic benefit cost/(credit) $ (5 ) $ 24 $ (4 ) $ (3 ) $ (11 ) $ 39 $ (7 ) $ (6 ) Pension settlement charges were recognized after determining that the annual lump sum payments will likely exceed the annual interest and service costs for certain pension plans, including the primary U.S. pension plan. The charges included the acceleration of a portion of unrecognized actuarial losses. Non-current pension liabilities were $1,182 million at June 30, 2016 and $765 million at December 31, 2015 . The increase resulted primarily from a lower discount rate assumed in the remeasurement of U.S. plan benefit obligations. Defined contribution plan expense in the U.S. was $50 million and $45 million for the three months ended June 30, 2016 and 2015 , respectively, and $92 million and $89 million for the six months ended June 30, 2016 and 2015 , respectively. |
EMPLOYEE STOCK BENEFIT PLANS
EMPLOYEE STOCK BENEFIT PLANS | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Stock Benefit Plans [Text Block] | EMPLOYEE STOCK BENEFIT PLANS Stock-based compensation expense was as follows: Three Months Ended June 30, Six Months Ended June 30, Dollars in Millions 2016 2015 2016 2015 Restricted stock units $ 23 $ 21 $ 43 $ 42 Market share units 9 9 18 18 Performance share units 22 29 40 53 Total stock-based compensation expense $ 54 $ 59 $ 101 $ 113 Income tax benefit $ 19 $ 20 $ 34 $ 38 The number of units granted and the weighted-average fair value on the grant date were as follows: Six Months Ended June 30, 2016 Units in Millions Units Weighted-Average Fair Value Restricted stock units 2.1 $ 61.39 Market share units 0.7 65.26 Performance share units 1.1 64.87 Unrecognized compensation cost related to nonvested awards of $454 million is expected to be recognized over a weighted-average period of 2.7 years . |
LEGAL PROCEEDINGS AND CONTINGEN
LEGAL PROCEEDINGS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings and Contingencies [Text Block] | LEGAL PROCEEDINGS AND CONTINGENCIES The Company 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, suppliers, service providers, licensees, employees, or shareholders, 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. The Company recognizes accruals for such contingencies when it is probable that a liability will be incurred and the amount of loss can be reasonably estimated. These matters 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. Legal proceedings that are material or that the Company believes could become material are described below. Although the Company believes it has substantial defenses in these matters, there can be no assurance that there will not be an increase in the scope of pending matters or that any future lawsuits, claims, government investigations or other legal proceedings will not be material. Unless otherwise noted, the Company is unable to assess the outcome of the respective litigation nor is it able to provide an estimated range of potential loss. Furthermore, failure to enforce our patent rights would likely result in substantial decreases in the respective product revenues from generic competition. INTELLECTUAL PROPERTY Plavix* — Australia As previously disclosed, 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. (Apotex), has since changed its name to Apotex. In August 2007, Apotex filed an application in the Federal Court of Australia (the Federal Court) 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 granted Sanofi’s injunction. A subsidiary of the Company 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 Apotex case, and a trial occurred in April 2008. 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. The Company 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 which have stayed the Federal Court’s ruling. Apotex filed a notice of appeal appealing the holding of validity of the clopidogrel bisulfate, hydrochloride, hydrobromide, and taurocholate claims. A hearing on the appeals occurred in February 2009. On September 29, 2009, the Full Court held all of the claims of Patent No. 597784 invalid. In November 2009, the Company and Sanofi applied to the High Court of Australia (High Court) for special leave to appeal the judgment of the Full Court. In March 2010, the High Court denied the Company and Sanofi’s request to hear the appeal of the Full Court decision. The case has been remanded to the Federal Court for further proceedings related to damages sought by Apotex. The Australian government has intervened in this matter and is also seeking damages for alleged losses experienced during the period when the injunction was in place. The Company and Apotex have settled the Apotex case, and the case has been dismissed. The Australian government's claim is still pending. It is not possible at this time to predict the outcome of the Australian government’s claim or its impact on the Company. Sprycel - European Union In May 2013, Apotex, Actavis Group PTC ehf, Generics [UK] Limited (Mylan) and an unnamed company filed oppositions in the European Patent Office (EPO) seeking revocation of European Patent No. 1169038 (the ‘038 patent) covering dasatinib, the active ingredient in Sprycel . The ‘038 patent is scheduled to expire in April 2020 (excluding potential term extensions). On January 20, 2016, the Opposition Division of the EPO revoked the ‘038 patent. In May 2016, the Company appealed the EPO’s decision to the EPO Board of Appeal. The ‘038 patent will remain in force pending the outcome of our appeal of the EPO’s decision, and we intend to pursue legal options to defend our intellectual property rights from any future infringement. Orphan drug exclusivity and data exclusivity for Sprycel in the EU expire in November 2016. The decision does not affect the validity of our other Sprycel patents within and outside Europe, including a different patent that covers the monohydrate form of dasatinib. In the U.S., the Company entered into a settlement agreement with Apotex in 2013 regarding a patent infringement suit whereby Apotex can launch its generic dasatinib monohydrate product in September 2024, or earlier in certain circumstances. Anti-PD-1 Antibody Patent Oppositions and Litigation There are a number of ongoing patent litigations against Merck & Co., Inc. (Merck) around the world with respect to patents directed to 1) methods of treating cancer using a PD-1 antibody (the Honjo patent filing) and 2) a class of anti-PD-1 antibodies (the Korman patent filing). Europe Under our alliance with Ono Pharmaceutical Co., Ltd. (Ono), BMS has exclusive rights to the Honjo patent filing, including European patent (EP 1 537 878) (the ’878 patent). In 2011, Merck filed an opposition in the European Patent Office (EPO) seeking revocation of the ‘878 patent. In June 2014, the Opposition Division of the EPO maintained the validity of the claims in the ’878 patent. Merck has appealed this decision. In May 2014, Merck filed a lawsuit in the United Kingdom (UK) seeking revocation of the UK national version of the ’878 patent. In July 2014, BMS and Ono sued Merck for patent infringement. A trial was held in the UK in July 2015. In October 2015, the court issued its judgment, finding the ’878 patent valid and infringed. Merck has appealed this judgment. In February 2015, Merck filed a lawsuit in the Netherlands seeking revocation of the Dutch national version of the ’878 patent, and BMS and Ono subsequently sued Merck for patent infringement. A trial regarding the validity and infringement of the ’878 patent was held in January 2016. In June 2016, the Dutch court found the ’878 patent valid and infringed by Merck. In December 2015, BMS and Ono filed lawsuits with respect to national versions of the ‘878 patent in several other European countries, including France, Germany, Ireland, Spain and Switzerland. BMS and Ono can file patent infringement actions against Merck in other national courts in Europe at or around the time Merck launches Keytruda* . If any of the above-mentioned national courts determine Merck infringes a valid claim in the ’878 patent, BMS and Ono may be entitled to monetary damages, including royalties on future sales of Keytruda* . BMS and Ono are not seeking an injunction to prevent Merck from marketing Keytruda* in these litigations unless an appropriate financial remedy cannot be agreed upon or awarded by the court. In April 2014, Merck and three other companies opposed a European patent (EP 2 161 336) (the ’336 patent) which is based on the Korman patent filing. In February 2015, BMS and Ono submitted a request to amend the claims of the ’336 patent. Oral proceedings before the Opposition Division of the EPO occurred in July 2016. The Opposition Division of the EPO maintained the validity of the ’336 patent claims. United States In September 2014, BMS and Ono filed a lawsuit in the United States alleging that Merck’s marketing of Keytruda* infringes U.S. Patent No. 8,728,474 (the ’474 patent) which is based on the Honjo patent filing. The trial in this matter is currently scheduled to begin in April 2017. In June and July 2015, BMS and Ono filed lawsuits in the United States alleging that Merck’s marketing of Keytruda* infringes U.S. Patent Nos. 9,067,999 (the ‘999 patent) and 9,073,994 (the ‘994 patent), respectively, which are based on the Honjo patent filing. In these lawsuits, BMS and Ono are not seeking to prevent or stop the marketing of Keytruda* in the United States unless an appropriate financial remedy cannot be agreed upon or awarded by the court. In September 2015, Dana-Farber Cancer Institute (Dana-Farber) filed a complaint in Massachusetts federal court seeking to correct the inventorship of five related U.S. patents based on the Honjo patent filing. Specifically, Dana-Farber is seeking to add two scientists as inventors to these patents. Three of these patents (the ‘474, ‘999, and ‘994 patents) are currently subject to patent infringement proceedings filed by BMS and Ono against Merck in Delaware federal court, as specified above. In April 2016, Merck filed an action in New Jersey federal court seeking a declaratory judgment that U.S. Patent Nos. 8,777,105 (the '105 patent) and 9,084,776 (the '776 patent), which are based on the Korman patent filing, are invalid and not infringed by Keytruda*. In July 2016, Merck filed Petitions for Inter Partes Review of the ‘999 and ‘994 patents. The petitions request that the Patent Trial and Appeal Board (PTAB) review the validity of the ‘999 and ‘994 patents. The Company has the opportunity to respond and oppose the petitions by October 2016. Rest of World In September 2014, Merck filed a lawsuit in Australia seeking the revocation of Australian Patent No. 2011203119, which is based on the Korman patent filing. In March 2015, BMS and Ono countersued Merck for patent infringement. Ono and BMS have similar and other patents and applications pending in the United States and other countries. PRICING, SALES AND PROMOTIONAL PRACTICES LITIGATION Qui Tam Litigation In March 2011, the Company was served with an unsealed qui tam complaint filed by three former sales representatives in California Superior Court, County of Los Angeles. The California Department of Insurance has elected to intervene in the lawsuit. The complaint alleges the Company paid kickbacks to California providers and pharmacies in violation of California Insurance Frauds Prevention Act, Cal. Ins. Code § 1871.7. In July 2016, the parties reached a final settlement, thus concluding the matter. Plavix* State Attorneys General Lawsuits The Company and certain affiliates of Sanofi are defendants in consumer protection and/or false advertising actions brought by several states relating to the sales and promotion of Plavix* . It is not possible at this time to reasonably assess the outcome of these lawsuits or their potential impact on the Company. PRODUCT LIABILITY LITIGATION The Company 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, the Company also faces unfiled claims involving its products. Plavix* As previously disclosed, the Company and certain affiliates of Sanofi are defendants in a number of individual lawsuits in various state and federal courts claiming personal injury damage allegedly sustained after using Plavix* . Currently, over 5,400 claims involving injury plaintiffs as well as claims by spouses and/or other beneficiaries, are filed in state and federal courts in various states including California, New Jersey, Delaware and New York. In February 2013, the Judicial Panel on Multidistrict Litigation granted the Company and Sanofi’s motion to establish a multi-district litigation (MDL) to coordinate Federal pretrial proceedings in Plavix* product liability and related cases in New Jersey Federal Court. It is not possible at this time to reasonably assess the outcome of these lawsuits or the potential impact on the Company. Byetta* Amylin, a former subsidiary of the Company, and Lilly are co-defendants in product liability litigation related to Byetta*. To date, there are over 500 separate lawsuits pending on behalf of almost 2,400 active plaintiffs (including pending settlements), which include injury plaintiffs as well as claims by spouses and/or other beneficiaries, in various courts in the U.S. The Company has agreed in principle to resolve over 319 of these claims. The majority of these cases have been brought by individuals who allege personal injury sustained after using Byetta* , primarily pancreatic cancer and pancreatitis, and, in some cases, claiming alleged wrongful death. The majority of cases were pending in Federal Court in San Diego in an MDL or in a coordinated proceeding in California Superior Court in Los Angeles (JCCP). In November 2015, the defendants' motion for summary judgment based on federal preemption was granted in both the MDL and the JCCP. The plaintiffs in the MDL have appealed to the U.S. Court of Appeals for the Ninth Circuit and the JCCP plaintiffs have appealed to the California Court of Appeal. Amylin has product liability insurance covering a substantial number of claims involving Byetta* and any additional liability to Amylin with respect to Byetta* is expected to be shared between the Company and AstraZeneca. It is not possible to reasonably predict the outcome of any lawsuit, claim or proceeding or the potential impact on the Company. Abilify* The Company and Otsuka Pharmaceutical Co. Ltd. (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. There have been approximately 40 cases filed in state and federal courts. A petition seeking to establish an MDL has been filed by the parties. SHAREHOLDER DERIVATIVE LITIGATION In December 2015, two shareholder derivative lawsuits were filed in New York state court against certain officers and directors of the Company. The plaintiffs allege, among other things, breaches of fiduciary duty surrounding the Company’s previously disclosed October 2015 civil settlement with the Securities and Exchange Commission of alleged Foreign Corrupt Practices Act violations in China in which the Company agreed to a payment of approximately $14.7 million in disgorgement, penalties and interest. In May 2016, the Company filed motions to dismiss the two shareholder derivative lawsuits. GOVERNMENT INVESTIGATIONS Like other pharmaceutical companies, the Company and certain of its subsidiaries are subject to extensive regulation by national, state and local government agencies in the U.S. and other countries in which BMS operates. As a result, the Company, from time to time, is subject to various governmental inquiries and investigations. It is possible that criminal charges, substantial fines and/or civil penalties, could result from government investigations. The most significant investigations conducted by government agencies, of which the Company is aware, are listed below. Abilify* State Attorneys General Investigation In March 2009, the Company received a letter from the Delaware Attorney General’s Office advising of a multi-state coalition (Coalition) investigating whether certain Abilify* marketing practices violated those respective states’ consumer protection statutes. The Company and the Executive Committee of the Coalition have reached a settlement in principle in this matter, which remains subject to approval by each individual state and District of Columbia in the Coalition. ENVIRONMENTAL PROCEEDINGS As previously reported, the Company is a party to several environmental proceedings and other matters, and is responsible under various state, federal and foreign laws, including the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), for certain costs of investigating and/or remediating contamination resulting from past industrial activity at the Company’s current or former sites or at waste disposal or reprocessing facilities operated by third parties. CERCLA Matters With respect to CERCLA matters for which the Company is responsible under various state, federal and foreign laws, the Company 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 the Company accrues liabilities when they are probable and reasonably estimable. The Company estimated its share of future costs for these sites to be $63 million at June 30, 2016 , 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 $63 million includes the estimated costs for any additional probable loss associated with the previously disclosed North Brunswick Township High School Remediation Site. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business | Bristol-Myers Squibb Company (which may be referred to as Bristol-Myers Squibb, BMS or the Company) prepared these unaudited consolidated financial statements following the requirements of the Securities and Exchange Commission (SEC) and United States (U.S.) generally accepted accounting principles (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 Form 10-Q, which include all adjustments necessary for a fair presentation of the financial position at June 30, 2016 and December 31, 2015 , the results of operations for the three and six months ended June 30, 2016 and 2015 , and cash flows for the six months ended June 30, 2016 and 2015 . All intercompany balances and transactions have been eliminated. These financial statements and the related notes should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2015 included in the Annual Report on Form 10-K. |
Use of Estimates | 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 and assumptions. The most significant assumptions are employed in estimates used in determining the fair value and potential impairment of intangible assets; sales rebate and return accruals; legal contingencies; income taxes; estimated selling prices used in multiple element arrangements; and pension and postretirement benefits. Actual results may differ from estimates. |
Reclassifications | Certain prior period amounts were reclassified to conform to the current period presentation. The reclassifications provide a more concise financial statement presentation and additional information is disclosed in the notes if material. Prior Presentation Current Presentation Consolidated Statements of Earnings Advertising and product promotion Included in Marketing, selling and administrative expenses Consolidated Balance Sheets Assets held-for-sale Included in Prepaid expenses and other Accrued expenses Combined as Accrued liabilities Accrued rebates and returns Dividends payable Pension, postretirement and postemployment liabilities Combined as Pension and other liabilities Other liabilities Consolidated Statements of Cash Flows Net earnings attributable to noncontrolling interest Included in Other adjustments Divestiture gains and royalties included in Other adjustments Divestiture gains and royalties Asset acquisition charges included in Other adjustments Asset acquisition charges |
New Accounting Pronouncements | In June 2016 , the Financial Accounting Standards Board (FASB) issued amended guidance for the measurement of credit losses on financial instruments. Entities will be required to use a forward-looking estimated loss model. Available-for-sale debt security credit losses will be recognized as allowances rather than a reduction in amortized cost. The guidance is effective beginning with interim periods in 2020 with early adoption permitted in 2019 on a modified retrospective approach. The Company is assessing the potential impact of the new standard. In March 2016 , the FASB issued amended guidance for share-based payment transactions. Excess tax benefits and deficiencies will be recognized in the consolidated statement of earnings rather than capital in excess of par value of stock on a prospective basis. A policy election will be available to account for forfeitures as they occur, with the cumulative effect of the change recognized as an adjustment to retained earnings at the date of adoption. Excess tax benefits within the consolidated statement of cash flows will be presented as an operating activity (prospective or retrospective application) and cash payments to tax authorities in connection with shares withheld for statutory tax withholding requirements will be presented as a financing activity (retrospective application). The guidance is effective beginning with interim periods in 2017 with early adoption permitted. The Company is assessing the potential impact of the new standard. In February 2016 , the FASB issued amended guidance on lease accounting. The amended guidance requires the recognition of a right-of-use asset and a lease liability, initially measured at the present value of the lease payments for leases with a term longer than 12 months. The guidance is effective beginning with interim periods in 2019 with early adoption permitted on a modified retrospective approach. The Company is assessing the potential impact of the new standard. In January 2016 , the FASB issued amended guidance for the recognition, measurement, presentation and disclosures of financial instruments effective January 1, 2018 with early adoption not permitted. The new guidance requires that fair value adjustments for equity securities with readily determinable fair values currently classified as available-for-sale be reported through earnings. The new guidance also requires a qualitative impairment assessment for equity investments without a readily determinable fair value and a charge through earnings if an impairment exists. The Company is assessing the potential impact of the new standard. In May 2014 , the FASB issued a new standard related to revenue recognition, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The new standard will replace most of the existing revenue recognition standards in U.S. GAAP when it becomes effective on January 1, 2018. Early adoption is permitted no earlier than 2017. The new standard can be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of the change recognized at the date of the initial application in retained earnings. The Company is assessing the potential impact of the new standard and has not yet selected a transition method. |
BUSINESS SEGMENT INFORMATION (T
BUSINESS SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Product Revenues [Table Text Block] | The composition of total revenues was as follows: Three Months Ended June 30, Six Months Ended June 30, Dollars in Millions 2016 2015 2016 2015 Net product sales $ 4,432 $ 3,572 $ 8,396 $ 6,631 Alliance revenues 418 552 827 1,507 Other revenues 21 39 39 66 Total Revenues $ 4,871 $ 4,163 $ 9,262 $ 8,204 Product revenues were as follows: Three Months Ended June 30, Six Months Ended June 30, Dollars in Millions 2016 2015 2016 2015 Oncology Empliciti (elotuzumab) $ 34 $ — $ 62 $ — Erbitux* (cetuximab) — 169 — 334 Opdivo (nivolumab) 840 122 1,544 162 Sprycel (dasatinib) 451 405 858 780 Yervoy (ipilimumab) 241 296 504 621 Cardiovascular Eliquis (apixaban) 777 437 1,511 792 Immunoscience Orencia (abatacept) 593 461 1,068 861 Virology Baraclude (entecavir) 299 343 590 683 Hepatitis C Franchise 546 479 973 743 Reyataz (atazanavir sulfate) Franchise 247 303 468 597 Sustiva (efavirenz) Franchise 271 317 544 607 Neuroscience Abilify* (aripiprazole) 35 107 68 661 Mature Products and All Other 537 724 1,072 1,363 Total Revenues $ 4,871 $ 4,163 $ 9,262 $ 8,204 * Indicates brand names of products which are trademarks not owned or wholly owned by BMS. Specific trademark ownership information is included at the end of this quarterly report on Form 10-Q. |
ALLIANCES (Tables)
ALLIANCES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Alliance Arrangements [Table Text Block] | Selected financial information pertaining to our 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 2016 2015 2016 2015 Revenues from alliances: Net product sales $ 1,335 $ 1,228 $ 2,566 $ 2,222 Alliance revenues 418 552 827 1,507 Total Revenues $ 1,753 $ 1,780 $ 3,393 $ 3,729 Payments to/(from) alliance partners: Cost of products sold $ 495 $ 423 $ 971 $ 812 Marketing, selling and administrative (8 ) (3 ) (7 ) 22 Research and development (3 ) 66 30 188 Other (income)/expense (451 ) (148 ) (704 ) (449 ) Noncontrolling interest, pre-tax 8 23 10 28 Selected Alliance Balance Sheet information: Dollars in Millions June 30, December 31, Receivables - from alliance partners $ 1,187 $ 958 Accounts payable - to alliance partners 549 542 Deferred income from alliances 1,426 1,459 |
OTHER (INCOME)_EXPENSE (Tables)
OTHER (INCOME)/EXPENSE (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Other Nonoperating Income (Expense) [Abstract] | |
Schedule Of Other Income Expense [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, Dollars in Millions 2016 2015 2016 2015 Interest expense $ 42 $ 49 $ 85 $ 100 Investment income (25 ) (26 ) (49 ) (56 ) Provision for restructuring 18 28 22 40 Litigation and other settlements 6 4 49 16 Equity in net income of affiliates (20 ) (22 ) (46 ) (48 ) Divestiture gains (283 ) (8 ) (553 ) (162 ) Royalties and licensing income (167 ) (97 ) (421 ) (195 ) Transition and other service fees (74 ) (27 ) (127 ) (54 ) Pension charges 25 36 47 63 Out-licensed intangible asset impairment — — 15 13 Equity investment impairment 45 — 45 — Written option adjustment — — — (36 ) Loss on debt redemption — 180 — 180 Other (21 ) (10 ) (41 ) (53 ) Other (income)/expense $ (454 ) $ 107 $ (974 ) $ (192 ) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, Dollars in Millions 2016 2015 2016 2015 Earnings Before Income Taxes $ 1,615 $ 52 $ 3,270 $ 1,500 Provision for Income Taxes 427 162 876 411 Effective tax rate 26.4 % 311.5 % 26.8 % 27.4 % |
EARNINGS_(LOSS) PER SHARE (Tabl
EARNINGS/(LOSS) PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, Amounts in Millions, Except Per Share Data 2016 2015 2016 2015 Net Earnings/(Loss) Attributable to BMS used for Basic and Diluted EPS Calculation $ 1,166 $ (130 ) $ 2,361 $ 1,056 Weighted-average common shares outstanding – basic 1,670 1,667 1,670 1,665 Contingently convertible debt common stock equivalents — — — 1 Incremental shares attributable to share-based compensation plans 9 — 9 11 Weighted-average common shares outstanding – diluted 1,679 1,667 1,679 1,677 Earnings/(Loss) per Common Share: Basic $ 0.70 $ (0.08 ) $ 1.41 $ 0.63 Diluted $ 0.69 $ (0.08 ) $ 1.41 $ 0.63 Contingently convertible debt common stock equivalents and incremental shares attributable to share-based compensation plans of 10 million were excluded from the per share calculation for the three months ended June 30, 2015 because of the net loss in that period. |
FINANCIAL INSTRUMENTS AND FAI31
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | ||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | Financial assets and liabilities measured at fair value on a recurring basis are summarized below: June 30, 2016 December 31, 2015 Dollars in Millions Level 1 Level 2 Total Level 1 Level 2 Total Cash and cash equivalents - Money market and other securities $ — $ 2,425 $ 2,425 $ — $ 1,825 $ 1,825 Marketable securities: Certificates of deposit — 438 438 — 804 804 Commercial paper — 100 100 — — — Corporate debt securities — 4,358 4,358 — 5,638 5,638 Equity funds — 95 95 — 92 92 Fixed income funds — 7 7 — 11 11 Derivative assets: Interest rate swap contracts — 14 14 — 31 31 Forward starting interest rate swap contracts — — — — 15 15 Foreign currency forward contracts — 36 36 — 50 50 Equity investments 34 — 34 60 — 60 Derivative liabilities: Interest rate swap contracts — — — — (1 ) (1 ) Forward starting interest rate swap contracts — (98 ) (98 ) — (7 ) (7 ) Foreign currency forward contracts — (59 ) (59 ) — (10 ) (10 ) | |
Available-for-sale Securities [Table Text Block] | The following table summarizes available-for-sale securities: Dollars in Millions Amortized Gross Gross Fair Value June 30, 2016 Certificates of deposit $ 438 $ — $ — $ 438 Commercial paper 100 — — 100 Corporate debt securities 4,310 48 — 4,358 Equity investments 32 4 (2 ) 34 Total $ 4,880 $ 52 $ (2 ) $ 4,930 December 31, 2015 Certificates of deposit $ 804 $ — $ — $ 804 Corporate debt securities 5,646 15 (23 ) 5,638 Equity investments 74 10 (24 ) 60 Total $ 6,524 $ 25 $ (47 ) $ 6,502 Dollars in Millions June 30, December 31, Current marketable securities (a) $ 1,717 $ 1,885 Non-current marketable securities (b) 3,281 4,660 Other assets 34 60 Available-for-sale securities $ 5,032 $ 6,605 (a) The fair value option for financial assets was elected for investments in equity and fixed income funds. The fair value of these investments were $102 million at June 30, 2016 and $103 million at December 31, 2015 and were included in current marketable securities. (b) All non-current marketable securities mature within five years as of June 30, 2016 and December 31, 2015 . | |
Schedule of Derivatives and Fair Value [Table Text Block] | The following table summarizes the fair value of outstanding derivatives: June 30, 2016 December 31, 2015 Dollars in Millions Balance Sheet Location Notional Fair Value Notional Fair Value Derivatives designated as hedging instruments: Interest rate swap contracts Other assets $ 1,250 $ 14 $ 1,100 $ 31 Interest rate swap contracts Pension and other liabilities — — 650 (1 ) Forward starting interest rate swap contracts Other assets — — 500 15 Forward starting interest rate swap contracts Accrued liabilities 750 (98 ) — — Forward starting interest rate swap contracts Pension and other liabilities — — 250 (7 ) Foreign currency forward contracts Prepaid expenses and other 638 36 1,016 50 Foreign currency forward contracts Accrued liabilities 782 (55 ) 342 (5 ) Foreign currency forward contracts Pension and other liabilities 31 (1 ) — — Derivatives not designated as hedging instruments: Foreign currency forward contracts Accrued liabilities 380 (3 ) 445 (5 ) | |
Schedule of Fair Value and Other Adjustments to Long Term Debt [Table Text Block] | Long-term debt includes: Dollars in Millions June 30, December 31, Principal Value $ 6,353 $ 6,339 Adjustments to Principal Value: Fair value of interest rate swap contracts 14 30 Unamortized basis adjustment from swap terminations 301 272 Unamortized bond discounts and issuance costs (87 ) (91 ) Total $ 6,581 $ 6,550 | |
Schedule of Note Issuances [Table Text Block] | Amounts in Millions Euro U.S. dollars Principal Value: 1.000% Euro Notes due 2025 € 575 $ 643 1.750% Euro Notes due 2035 575 643 Total € 1,150 $ 1,286 Proceeds net of discount and deferred loan issuance costs € 1,133 $ 1,268 Forward starting interest rate swap contracts terminated: Notional amount € 500 $ 559 Unrealized loss (16 ) (18 ) | |
Debt Instrument Redemption [Table Text Block] | Six Months Ended Dollars in Millions June 30, 2015 Principal amount $ 1,624 Carrying value 1,795 Debt redemption price 1,957 Notional amount of interest rate swap contracts terminated 735 Interest rate swap contract termination payments 11 Loss on debt redemption (a) 180 (a) Including acceleration of debt issuance costs, loss on interest rate lock contract and other related fees. |
RECEIVABLES (Tables)
RECEIVABLES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Accounts Receivable, Net [Abstract] | |
Schedule Of Receivables [Table Text Block] | Dollars in Millions June 30, December 31, Trade receivables $ 3,825 $ 3,070 Less allowances (140 ) (122 ) Net trade receivables 3,685 2,948 Alliance receivables 1,187 958 Prepaid and refundable income taxes 483 182 Other 267 211 Receivables $ 5,622 $ 4,299 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Inventory, Net [Abstract] | |
Inventories [Table Text Block] | Dollars in Millions June 30, December 31, Finished goods $ 399 $ 381 Work in process 977 868 Raw and packaging materials 248 199 Total inventories $ 1,624 $ 1,448 Inventories $ 1,437 $ 1,221 Other assets 187 227 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Dollars in Millions June 30, December 31, Land $ 107 $ 107 Buildings 4,700 4,515 Machinery, equipment and fixtures 3,440 3,347 Construction in progress 699 662 Gross property, plant and equipment 8,946 8,631 Less accumulated depreciation (4,349 ) (4,219 ) Property, plant and equipment $ 4,597 $ 4,412 |
OTHER INTANGIBLE ASSETS (Tables
OTHER INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule Of Intangible Assets By Major Class [Table Text Block] | Dollars in Millions June 30, December 31, Licenses $ 559 $ 574 Developed technology rights 2,358 2,357 Capitalized software 1,362 1,302 In-process research and development 120 120 Gross other intangible assets 4,399 4,353 Less accumulated amortization (3,020 ) (2,934 ) Other intangible assets $ 1,379 $ 1,419 |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities [Table Text Block] | Dollars in Millions June 30, December 31, Accrued rebates and returns $ 1,649 $ 1,324 Employee compensation and benefits 604 904 Dividends payable 642 655 Accrued research and development 573 553 Litigation and other settlements 146 189 Royalties 170 161 Restructuring 58 89 Pension and postretirement benefits 47 47 Other 991 816 Accrued liabilities $ 4,880 $ 4,738 |
DEFERRED INCOME (Tables)
DEFERRED INCOME (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Deferred Revenue Disclosure [Abstract] | |
Deferred Revenue By Arrangement Disclosure [Table Text Block] | Dollars in Millions June 30, December 31, Alliances $ 1,426 $ 1,459 Other 342 130 Total deferred income $ 1,768 $ 1,589 Current portion $ 1,182 $ 1,003 Non-current portion 586 586 |
EQUITY (Tables)
EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Schedule of Stock by Class [Table Text Block] | Common Stock Capital in Excess of Par Value of Stock Retained Earnings Treasury Stock Noncontrolling Interest Dollars and Shares in Millions Shares Par Value Shares Cost Balance at January 1, 2015 2,208 $ 221 $ 1,507 $ 32,541 547 $ (16,992 ) $ 131 Net earnings — — — 1,056 — — 43 Cash dividends declared — — — (1,236 ) — — — Employee stock compensation plans — — (144 ) — (6 ) 341 — Debt conversion — — — — — 2 — Distributions — — — — — — (6 ) Balance at June 30, 2015 2,208 $ 221 $ 1,363 $ 32,361 541 $ (16,649 ) $ 168 Balance at January 1, 2016 2,208 $ 221 $ 1,459 $ 31,613 539 $ (16,559 ) $ 158 Net earnings — — — 2,361 — — 33 Cash dividends declared — — — (1,268 ) — — — Stock repurchase program — — — — 4 (231 ) — Employee stock compensation plans — — 135 — (6 ) (9 ) — Distributions — — — — — — (31 ) Balance at June 30, 2016 2,208 $ 221 $ 1,594 $ 32,706 537 $ (16,799 ) $ 160 |
Schedule of Comprehensive Income Loss [Table Text Block] | The components of other comprehensive income/(loss) were as follows: 2016 2015 Pretax Tax After tax Pretax Tax After tax Three Months Ended June 30, Derivatives qualifying as cash flow hedges: (a) Unrealized gains/(losses) $ (59 ) $ 20 $ (39 ) $ 35 $ (19 ) $ 16 Reclassified to net earnings (5 ) — (5 ) (36 ) 11 (25 ) Derivatives qualifying as cash flow hedges (64 ) 20 (44 ) (1 ) (8 ) (9 ) Pension and postretirement benefits: Actuarial gains/(losses) (233 ) 83 (150 ) 412 (145 ) 267 Amortization (b) 19 (9 ) 10 24 (9 ) 15 Curtailments and settlements (c) 25 (9 ) 16 36 (12 ) 24 Pension and postretirement benefits (189 ) 65 (124 ) 472 (166 ) 306 Available-for-sale securities: Unrealized gains/(losses) 10 (3 ) 7 (32 ) 9 (23 ) Realized losses 34 — 34 1 — 1 Available-for-sale securities (d) 44 (3 ) 41 (31 ) 9 (22 ) Foreign currency translation 20 (4 ) 16 (26 ) (6 ) (32 ) $ (189 ) $ 78 $ (111 ) $ 414 $ (171 ) $ 243 Six Months Ended June 30, Derivatives qualifying as cash flow hedges: (a) Unrealized gains/(losses) $ (185 ) $ 62 $ (123 ) $ 70 $ (30 ) $ 40 Reclassified to net earnings (9 ) 2 (7 ) (63 ) 20 (43 ) Derivatives qualifying as cash flow hedges (194 ) 64 (130 ) 7 (10 ) (3 ) Pension and postretirement benefits: Actuarial gains/(losses) (525 ) 186 (339 ) 292 (103 ) 189 Amortization (b) 36 (12 ) 24 47 (15 ) 32 Curtailments and settlements (c) 47 (17 ) 30 63 (22 ) 41 Pension and postretirement benefits (442 ) 157 (285 ) 402 (140 ) 262 Available-for-sale securities: Unrealized gains/(losses) 37 (17 ) 20 (7 ) 1 (6 ) Realized losses 34 — 34 — — — Available-for-sale securities 71 (17 ) 54 (7 ) 1 (6 ) Foreign currency translation 22 3 25 20 (21 ) (1 ) $ (543 ) $ 207 $ (336 ) $ 422 $ (170 ) $ 252 (a) Included in cost of products sold. (b) Included in cost of products sold, research and development and marketing, selling and administrative expenses. (c) Included in other (income)/expense. |
Schedule of Accumulated Other Comprehensive Income Loss [Table Text Block] | The accumulated balances related to each component of other comprehensive loss, net of taxes, were as follows: Dollars in Millions June 30, December 31, 2015 Derivatives qualifying as cash flow hedges $ (96 ) $ 34 Pension and other postretirement benefits (2,365 ) (2,080 ) Available-for-sale securities 31 (23 ) Foreign currency translation (374 ) (399 ) Accumulated other comprehensive loss $ (2,804 ) $ (2,468 ) |
PENSION AND POSTRETIREMENT BE39
PENSION AND POSTRETIREMENT BENEFIT PLANS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | The net periodic benefit cost/(credit) of defined benefit pension and postretirement benefit plans includes: Three Months Ended June 30, Six Months Ended June 30, Pension Benefits Other Benefits Pension Benefits Other Benefits Dollars in Millions 2016 2015 2016 2015 2016 2015 2016 2015 Service cost – benefits earned during the year $ 7 $ 6 $ 1 $ 1 $ 13 $ 12 $ 2 $ 2 Interest cost on projected benefit obligation 49 60 2 3 100 121 5 6 Expected return on plan assets (106 ) (103 ) (6 ) (6 ) (210 ) (205 ) (12 ) (13 ) Amortization of prior service credits (1 ) (1 ) (1 ) (2 ) (2 ) (2 ) (2 ) (3 ) Amortization of net actuarial loss 21 26 — 1 40 50 — 2 Curtailments and settlements 25 36 — — 47 63 — — Special termination benefits — — — — 1 — — — Net periodic benefit cost/(credit) $ (5 ) $ 24 $ (4 ) $ (3 ) $ (11 ) $ 39 $ (7 ) $ (6 ) |
EMPLOYEE STOCK BENEFIT PLANS (T
EMPLOYEE STOCK BENEFIT PLANS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule Of Share Based Compensation Expense [Table Text Block] | Stock-based compensation expense was as follows: Three Months Ended June 30, Six Months Ended June 30, Dollars in Millions 2016 2015 2016 2015 Restricted stock units $ 23 $ 21 $ 43 $ 42 Market share units 9 9 18 18 Performance share units 22 29 40 53 Total stock-based compensation expense $ 54 $ 59 $ 101 $ 113 Income tax benefit $ 19 $ 20 $ 34 $ 38 |
Schedule of Share-based Compensation, Activity [Table Text Block] | The number of units granted and the weighted-average fair value on the grant date were as follows: Six Months Ended June 30, 2016 Units in Millions Units Weighted-Average Fair Value Restricted stock units 2.1 $ 61.39 Market share units 0.7 65.26 Performance share units 1.1 64.87 |
BUSINESS SEGMENT INFORMATION (N
BUSINESS SEGMENT INFORMATION (Net Sales of Key Products) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Net product sales | $ 4,432 | $ 3,572 | $ 8,396 | $ 6,631 |
Alliance revenues | 418 | 552 | 827 | 1,507 |
Other revenues | 21 | 39 | 39 | 66 |
Total revenues | 4,871 | 4,163 | 9,262 | 8,204 |
Empliciti [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 34 | 62 | ||
Erbitux [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 169 | 334 | ||
Opdivo [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 840 | 122 | 1,544 | 162 |
Sprycel [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 451 | 405 | 858 | 780 |
Yervoy [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 241 | 296 | 504 | 621 |
Eliquis [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 777 | 437 | 1,511 | 792 |
Orencia [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 593 | 461 | 1,068 | 861 |
Baraclude [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 299 | 343 | 590 | 683 |
Hepatitis C Franchise [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 546 | 479 | 973 | 743 |
Reyataz Franchise [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 247 | 303 | 468 | 597 |
Sustiva Franchise [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 271 | 317 | 544 | 607 |
Abilify [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 35 | 107 | 68 | 661 |
Mature Products And All Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 537 | $ 724 | $ 1,072 | $ 1,363 |
ALLIANCES (Details)
ALLIANCES (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Alliance Statement [Line Items] | |||||
Net product sales | $ 4,432 | $ 3,572 | $ 8,396 | $ 6,631 | |
Alliance revenues | 418 | 552 | 827 | 1,507 | |
Total revenues | 4,871 | 4,163 | 9,262 | 8,204 | |
Receivables - from alliance partners | 1,187 | 1,187 | $ 958 | ||
Deferred income from alliances | 1,768 | 1,768 | 1,589 | ||
Alliance Partners [Member] | |||||
Alliance Statement [Line Items] | |||||
Net product sales | 1,335 | 1,228 | 2,566 | 2,222 | |
Alliance revenues | 418 | 827 | |||
Total revenues | 1,753 | 1,780 | 3,393 | 3,729 | |
Payments to/(from) alliance partners - Cost of products sold | 495 | 423 | 971 | 812 | |
Payments to/(from) alliance partners - Marketing, selling and administrative | (8) | (3) | (7) | 22 | |
Payments to/(from) alliance partners - Research and development | (3) | 66 | 30 | 188 | |
Payments to/(from) alliance partners - Other (income)/expense | (451) | (148) | (704) | (449) | |
Noncontrolling interest, pre-tax | 8 | $ 23 | 10 | $ 28 | |
Receivables - from alliance partners | 1,187 | 1,187 | 958 | ||
Accounts payable - to alliance partners | 549 | 549 | 542 | ||
Deferred income from alliances | $ 1,426 | $ 1,426 | $ 1,459 |
ACQUISITIONS AND DIVESTITURES43
ACQUISITIONS AND DIVESTITURES ACQUISITIONS AND DIVESTITURES (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Divestitures | |||
Assets held-for-sale | $ 134 | ||
Reckitt Benckiser Group [Member] | |||
Divestitures | |||
Proceeds from divestiture of businesses | $ 317 | ||
Gain on sale of business | $ 277 | ||
ViiV Healthcare [Member] | |||
Divestitures | |||
Proceeds from divestiture of businesses | 350 | ||
Gain on sale of business | 269 | ||
Contingent development and regulatory milestone payments to receive due to sale of business | 1,100 | ||
Contingent sales-based milestone payments to receive due to sale of business | 4,300 | ||
Cormorant Pharmaceuticals [Member] | |||
Asset Acquisition [Line Items] | |||
Asset acquisition payment | 35 | ||
Contingent development and regulatory milestone payments to pay due to asset acquisition | 485 | ||
Padlock Therapeutics, Inc. [Member] | |||
Asset Acquisition [Line Items] | |||
Asset acquisition payment | 150 | ||
Contingent development and regulatory milestone payments to pay due to asset acquisition | 450 | ||
Upfront payment allocated to research and development expenses | 139 | ||
Deferred tax assets related to asset acquisition | $ 11 |
OTHER (INCOME)_EXPENSE (Details
OTHER (INCOME)/EXPENSE (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Other Nonoperating Income (Expense) [Abstract] | ||||
Interest expense | $ 42 | $ 49 | $ 85 | $ 100 |
Investment income | (25) | (26) | (49) | (56) |
Provision for restructuring | 18 | 28 | 22 | 40 |
Litigation and other settlements | 6 | 4 | 49 | 16 |
Equity in net income of affiliates | (20) | (22) | (46) | (48) |
Divestiture gains | (283) | (8) | (553) | (162) |
Royalties and licensing income | (167) | (97) | (421) | (195) |
Transition and other service fees | (74) | (27) | (127) | (54) |
Pension charges | 25 | 36 | 47 | 63 |
Out-licensed intangible asset impairment | 15 | 13 | ||
Equity investment impairment | 45 | 45 | ||
Written option adjustment | (36) | |||
Loss on debt redemption | 180 | 180 | ||
Other | (21) | (10) | (41) | (53) |
Other (income)/expense | $ (454) | $ 107 | $ (974) | $ (192) |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Earnings Before Income Taxes | $ 1,615 | $ 52 | $ 3,270 | $ 1,500 |
Provision for Income Taxes | $ 427 | $ 162 | $ 876 | $ 411 |
Effective tax rate | 26.40% | 311.50% | 26.80% | 27.40% |
Federal statutory tax rate | 35.00% | |||
Increase in effective tax rate due to discrete items | 4.00% | 5.50% | ||
Non-deductible research and development asset acquisition charge | $ 800 | |||
Minimum [Member] | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Decrease in Unrecognized Tax Benefits is Reasonably Possible | $ 270 | $ 270 | ||
Maximum [Member] | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Decrease in Unrecognized Tax Benefits is Reasonably Possible | $ 330 | $ 330 |
EARNINGS_(LOSS) PER SHARE (Deta
EARNINGS/(LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Net earnings/(loss) attributable to BMS used for Basic and Diluted EPS Calculation | $ 1,166 | $ (130) | $ 2,361 | $ 1,056 |
Weighted-average common shares outstanding - basic | 1,670 | 1,667 | 1,670 | 1,665 |
Contingently convertible debt common stock equivalents | 1 | |||
Incremental shares attributable to share-based compensation plans | 9 | 9 | 11 | |
Weighted-average common shares outstanding - diluted | 1,679 | 1,667 | 1,679 | 1,677 |
Earnings per share - basic | $ 0.70 | $ (0.08) | $ 1.41 | $ 0.63 |
Earnings per share - diluted | $ 0.69 | $ (0.08) | $ 1.41 | $ 0.63 |
Antidilutive securities excluded from computation of earnings per share, amount | 10 |
FINANCIAL INSTRUMENTS AND FAI47
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Fair Value Measurement) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | $ 2,425 | $ 1,825 |
Available-for-sale Securities | 4,930 | 6,502 |
Certificates of Deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 438 | 804 |
Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 100 | |
Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 4,358 | 5,638 |
Equity Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Marketable Securities, Current | 95 | 92 |
Fixed Income Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Marketable Securities, Current | 7 | 11 |
Equity Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 34 | 60 |
Interest Rate Swap Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 14 | 31 |
Derivative liabilities | (1) | |
Forward Starting Interest Rate Swap Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 15 | |
Derivative liabilities | (98) | (7) |
Foreign Currency Forward Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 36 | 50 |
Derivative liabilities | (59) | (10) |
Fair Value, Inputs, Level 1 [Member] | Equity Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 34 | 60 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 2,425 | 1,825 |
Fair Value, Inputs, Level 2 [Member] | Certificates of Deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 438 | 804 |
Fair Value, Inputs, Level 2 [Member] | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 100 | |
Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 4,358 | 5,638 |
Fair Value, Inputs, Level 2 [Member] | Equity Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Marketable Securities, Current | 95 | 92 |
Fair Value, Inputs, Level 2 [Member] | Fixed Income Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Marketable Securities, Current | 7 | 11 |
Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 14 | 31 |
Derivative liabilities | (1) | |
Fair Value, Inputs, Level 2 [Member] | Forward Starting Interest Rate Swap Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 15 | |
Derivative liabilities | (98) | (7) |
Fair Value, Inputs, Level 2 [Member] | Foreign Currency Forward Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 36 | 50 |
Derivative liabilities | $ (59) | $ (10) |
FINANCIAL INSTRUMENTS AND FAI48
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Available-for-sale) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities, Amortized Cost | $ 4,880 | $ 6,524 |
Marketable Securities, Gross Unrealized Gain in Accumulated OCI | 52 | 25 |
Marketable Securities, Gross Unrealized Loss in Accumulated OCI | (2) | (47) |
Available-for-sale Securities | 4,930 | 6,502 |
Available-for-sale Securities, Current | 1,717 | 1,885 |
Available-for-sale Securities, Noncurrent | 3,281 | 4,660 |
Available-for-sale securities including equity and fixed income funds | 5,032 | 6,605 |
Certificates of Deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities, Amortized Cost | 438 | 804 |
Available-for-sale Securities | 438 | 804 |
Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities, Amortized Cost | 100 | |
Available-for-sale Securities | 100 | |
Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities, Amortized Cost | 4,310 | 5,646 |
Marketable Securities, Gross Unrealized Gain in Accumulated OCI | 48 | 15 |
Marketable Securities, Gross Unrealized Loss in Accumulated OCI | (23) | |
Available-for-sale Securities | 4,358 | 5,638 |
Equity Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities, Amortized Cost | 32 | 74 |
Marketable Securities, Gross Unrealized Gain in Accumulated OCI | 4 | 10 |
Marketable Securities, Gross Unrealized Loss in Accumulated OCI | (2) | (24) |
Available-for-sale Securities | 34 | 60 |
Equity and fixed income funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 102 | 103 |
Other assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | $ 34 | $ 60 |
FINANCIAL INSTRUMENTS AND FAI49
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Derivatives and Hedging) (Details) € in Millions, $ in Millions | 6 Months Ended | ||||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016EUR (€) | Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($) | |
Derivative [Line Items] | |||||
Notional amount of nonderivative instruments designated as net investment hedges | € 950 | $ 1,055 | |||
Notional amount of terminated interest rate swaps | $ 500 | $ 147 | |||
Proceeds from terminated interest rate swaps including accrued interest | $ 43 | $ 28 | |||
Interest Rate Swap Contracts [Member] | |||||
Derivative [Line Items] | |||||
Derivative asset | 14 | $ 31 | |||
Total derivatives at fair value, liabilities | (1) | ||||
Interest Rate Swap Contracts [Member] | Designated as Hedging Instrument [Member] | Other assets [Member] | |||||
Derivative [Line Items] | |||||
Notional amount of derivatives | 1,250 | 1,100 | |||
Derivative asset | 14 | 31 | |||
Interest Rate Swap Contracts [Member] | Designated as Hedging Instrument [Member] | Pension and other liabilities [Member] | |||||
Derivative [Line Items] | |||||
Notional amount of derivatives | 650 | ||||
Total derivatives at fair value, liabilities | (1) | ||||
Forward Starting Interest Rate Swap Contracts [Member] | |||||
Derivative [Line Items] | |||||
Derivative asset | 15 | ||||
Total derivatives at fair value, liabilities | (98) | (7) | |||
Forward Starting Interest Rate Swap Contracts [Member] | Designated as Hedging Instrument [Member] | Other assets [Member] | |||||
Derivative [Line Items] | |||||
Notional amount of derivatives | 500 | ||||
Derivative asset | 15 | ||||
Forward Starting Interest Rate Swap Contracts [Member] | Designated as Hedging Instrument [Member] | Accrued liabilities [Member] | |||||
Derivative [Line Items] | |||||
Notional amount of derivatives | 750 | ||||
Total derivatives at fair value, liabilities | (98) | ||||
Forward Starting Interest Rate Swap Contracts [Member] | Designated as Hedging Instrument [Member] | Pension and other liabilities [Member] | |||||
Derivative [Line Items] | |||||
Notional amount of derivatives | 250 | ||||
Total derivatives at fair value, liabilities | (7) | ||||
Foreign Currency Forward Contracts [Member] | |||||
Derivative [Line Items] | |||||
Derivative asset | 36 | 50 | |||
Total derivatives at fair value, liabilities | (59) | (10) | |||
Foreign Currency Forward Contracts [Member] | Designated as Hedging Instrument [Member] | Prepaid expenses and other [Member] | |||||
Derivative [Line Items] | |||||
Notional amount of derivatives | 638 | 1,016 | |||
Derivative asset | 36 | 50 | |||
Foreign Currency Forward Contracts [Member] | Designated as Hedging Instrument [Member] | Accrued liabilities [Member] | |||||
Derivative [Line Items] | |||||
Notional amount of derivatives | 782 | 342 | |||
Total derivatives at fair value, liabilities | (55) | (5) | |||
Foreign Currency Forward Contracts [Member] | Designated as Hedging Instrument [Member] | Pension and other liabilities [Member] | |||||
Derivative [Line Items] | |||||
Notional amount of derivatives | 31 | ||||
Total derivatives at fair value, liabilities | (1) | ||||
Foreign Currency Forward Contracts [Member] | Not Designated as Hedging Instrument [Member] | Accrued liabilities [Member] | |||||
Derivative [Line Items] | |||||
Notional amount of derivatives | 380 | 445 | |||
Total derivatives at fair value, liabilities | (3) | $ (5) | |||
Euro Member Countries, Euro | Cash Flow Hedging [Member] | |||||
Derivative [Line Items] | |||||
Notional amount of derivatives | 721 | ||||
Japan, Yen | Cash Flow Hedging [Member] | |||||
Derivative [Line Items] | |||||
Notional amount of derivatives | $ 441 |
FINANCIAL INSTRUMENTS AND FAI50
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Debt) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||||
Principal value | $ 6,353 | $ 6,339 | ||
Adjustments to Principal Value, Fair value of interest rate swaps | 14 | 30 | ||
Adjustments to Principal Value, Unamortized basis adjustment from swap terminations | 301 | 272 | ||
Unamortized bond discount and issuance costs | (87) | (91) | ||
Total Long-term debt | 6,581 | 6,550 | ||
Long-term debt, fair value | 7,455 | $ 6,909 | ||
Interest payments | $ 102 | $ 124 | ||
Proceeds from Issuance of Debt | 1,268 | |||
Extinguishment of debt, principal amount | 1,624 | |||
Extinguishment of debt, carrying value | 1,795 | |||
Extinguishment of debt, redemption price | 1,957 | |||
Extinguishment of debt, notional amount of terminated swap contracts | 735 | |||
Extinguishment of debt, interest rate swap termination payments | 11 | |||
Loss on debt redemption | $ 180 | 180 | ||
Euro Member Countries, Euro | ||||
Debt Instrument [Line Items] | ||||
Principal value | 1,150 | 1,150 | ||
Proceeds from Issuance of Debt | 1,133 | |||
Euro Member Countries, Euro | 1.000% Euro Notes Due 2025 [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal value | 575 | 575 | ||
Euro Member Countries, Euro | 1.750% Euro Notes Due 2035 [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal value | 575 | 575 | ||
United States of America, Dollars | ||||
Debt Instrument [Line Items] | ||||
Principal value | 1,286 | 1,286 | ||
Proceeds from Issuance of Debt | 1,268 | |||
United States of America, Dollars | 1.000% Euro Notes Due 2025 [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal value | 643 | 643 | ||
United States of America, Dollars | 1.750% Euro Notes Due 2035 [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal value | 643 | 643 | ||
Forward Starting Interest Rate Swap Contracts [Member] | Euro Member Countries, Euro | ||||
Debt Instrument [Line Items] | ||||
Derivative Liability, Notional Amount | 500 | 500 | ||
Forward starting interest rate swap termination unrealized loss | (16) | |||
Forward Starting Interest Rate Swap Contracts [Member] | United States of America, Dollars | ||||
Debt Instrument [Line Items] | ||||
Derivative Liability, Notional Amount | $ 559 | 559 | ||
Forward starting interest rate swap termination unrealized loss | $ (18) |
RECEIVABLES (Details)
RECEIVABLES (Details) $ in Millions | 6 Months Ended | ||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Trade receivables | $ 3,825 | $ 3,070 | |
Less allowances | (140) | (122) | |
Net trade receivables | 3,685 | 2,948 | |
Alliance receivables | 1,187 | 958 | |
Prepaid and refundable income taxes | 483 | 182 | |
Other | 267 | 211 | |
Receivables | 5,622 | $ 4,299 | |
Non-U.S. receivables sold on a nonrecourse basis | $ 341 | $ 188 | |
Percent of aggregate total trade receivables due from three pharmaceutical wholesalers | 62.00% | 53.00% | |
Number Of Largest Pharmaceutical Wholesalers | 3 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Inventory, Net [Abstract] | ||
Finished goods | $ 399 | $ 381 |
Work in process | 977 | 868 |
Raw and packaging materials | 248 | 199 |
Total inventories | 1,624 | 1,448 |
Inventories | 1,437 | 1,221 |
Inventories - other assets | 187 | 227 |
Inventory pending regulatory approval | $ 108 | $ 85 |
PROPERTY, PLANT AND EQUIPMENT53
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Gross property, plant and equipment | $ 8,946 | $ 8,631 | |
Less accumulated depreciation | (4,349) | (4,219) | |
Property, plant and equipment | 4,597 | 4,412 | |
Depreciation expense | 210 | $ 258 | |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross property, plant and equipment | 107 | 107 | |
Buildings [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross property, plant and equipment | 4,700 | 4,515 | |
Machinery, equipment and fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross property, plant and equipment | 3,440 | 3,347 | |
Construction in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross property, plant and equipment | $ 699 | $ 662 |
OTHER INTANGIBLE ASSETS (Detail
OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
In-process research and development | $ 120 | $ 120 | |
Gross other intangible assets | 4,399 | 4,353 | |
Less: accumulated amortization | (3,020) | (2,934) | |
Other intangible assets | 1,379 | 1,419 | |
Amortization expense | 88 | $ 96 | |
Licensing Agreements [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets | 559 | 574 | |
Developed Technology Rights [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets | 2,358 | 2,357 | |
Capitalized Software, Intangible Asset [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets | $ 1,362 | $ 1,302 |
ACCRUED LIABILITIES (Details)
ACCRUED LIABILITIES (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Payables and Accruals [Abstract] | ||
Accrued rebates and returns | $ 1,649 | $ 1,324 |
Employee compensation and benefits | 604 | 904 |
Dividends payable | 642 | 655 |
Accrued research and development | 573 | 553 |
Litigation and other settlements | 146 | 189 |
Royalties | 170 | 161 |
Restructuring - current | 58 | 89 |
Pension and other postretirement benefits | 47 | 47 |
Other | 991 | 816 |
Accrued liabilities | $ 4,880 | $ 4,738 |
DEFERRED INCOME (Details)
DEFERRED INCOME (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Deferred Revenue Disclosure [Abstract] | |||
Alliances | $ 1,426 | $ 1,459 | |
Other | 342 | 130 | |
Total deferred income | 1,768 | 1,589 | |
Deferred income current | 1,182 | 1,003 | |
Deferred income non-current | 586 | $ 586 | |
Deferred early access program | 185 | ||
Amortization of deferred income | $ 143 | $ 159 |
EQUITY (Changes in Equity) (Det
EQUITY (Changes in Equity) (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Common Stock, Value, Issued, Balance at January 1, | $ 221 | |||
Common Stock, Value, Issued, Balance at June 30, | $ 221 | 221 | ||
Capital in Excess of Par Value of Stock, Balance at January 1, | 1,459 | |||
Capital in Excess of Par Value of Stock, Balance at June 30, | 1,594 | 1,594 | ||
Retained Earnings, Balance at January 1, | 31,613 | |||
Net Earnings Attributable to BMS | 1,166 | $ (130) | 2,361 | $ 1,056 |
Retained Earnings, Balance at June 30, | $ 32,706 | $ 32,706 | ||
Treasury Stock, Shares, Balance at January 1, | 539 | |||
Treasury Stock, Shares, Balance at June 30, | 537 | 537 | ||
Cost of Treasury Stock, Balance at January 1, | $ (16,559) | |||
Cost of Treasury Stock, Balance at June 30, | $ (16,799) | (16,799) | ||
Noncontrolling interest, Balance at January 1, | 158 | |||
Noncontrolling interest, Balance at June 30, | $ 160 | $ 160 | ||
Common Stock [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Common Stock, Shares Issued, Balance at January 1, | 2,208 | 2,208 | ||
Common Stock, Shares Issued, Balance at June 30, | 2,208 | 2,208 | 2,208 | 2,208 |
Common Stock, Value, Issued, Balance at January 1, | $ 221 | $ 221 | ||
Common Stock, Value, Issued, Balance at June 30, | $ 221 | $ 221 | 221 | 221 |
Capital in Excess of Par Value of Stock [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Capital in Excess of Par Value of Stock, Balance at January 1, | 1,459 | 1,507 | ||
Employee stock compensation plans, Capital in Excess of Par | 135 | (144) | ||
Capital in Excess of Par Value of Stock, Balance at June 30, | 1,594 | 1,363 | 1,594 | 1,363 |
Retained Earnings [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Retained Earnings, Balance at January 1, | 31,613 | 32,541 | ||
Net Earnings Attributable to BMS | 2,361 | 1,056 | ||
Cash dividends declared | (1,268) | (1,236) | ||
Retained Earnings, Balance at June 30, | $ 32,706 | $ 32,361 | $ 32,706 | $ 32,361 |
Treasury Stock [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Treasury Stock, Shares, Balance at January 1, | 539 | 547 | ||
Stock repurchase program, Shares | 4 | |||
Employee stock compensation plans, Shares | (6) | (6) | ||
Treasury Stock, Shares, Balance at June 30, | 537 | 541 | 537 | 541 |
Cost of Treasury Stock, Balance at January 1, | $ (16,559) | $ (16,992) | ||
Stock repurchase plan, Cost | (231) | |||
Employee stock compensation plans, Cost | (9) | 341 | ||
Debt conversion, Cost | 2 | |||
Cost of Treasury Stock, Balance at June 30, | $ (16,799) | $ (16,649) | (16,799) | (16,649) |
Noncontrolling Interest [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Noncontrolling interest, Balance at January 1, | 158 | 131 | ||
Net earnings attributable to noncontrolling interest | 33 | 43 | ||
Distributions | (31) | (6) | ||
Noncontrolling interest, Balance at June 30, | $ 160 | $ 168 | $ 160 | $ 168 |
EQUITY (Other Comprehensive Inc
EQUITY (Other Comprehensive Income/(Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Other Comprehensive Income (Loss), before Tax [Abstract] | |||||
Derivatives qualifying as cash flow hedges - Unrealized gains/(losses), Pre-tax | $ (59) | $ 35 | $ (185) | $ 70 | |
Derivatives qualifying as cash flow hedges - Reclassified to net earnings, Pre-tax | (5) | (36) | (9) | (63) | |
Derivatives qualifying as cash flow hedges, Pre-tax | (64) | (1) | (194) | 7 | |
Pension and postretirement benefits - Actuarial gains/(losses), Pre-tax | (233) | 412 | (525) | 292 | |
Pension and postretirement benefits - Amortization, Pre-tax | 19 | 24 | 36 | 47 | |
Pension and postretirement benefits - Curtailments and settlements, Pre-Tax | 25 | 36 | 47 | 63 | |
Pension and postretirement benefits, Pre-tax | (189) | 472 | (442) | 402 | |
Unrealized gains/(losses) on securities, Pre-Tax | 10 | (32) | 37 | (7) | |
Realized losses on securities, Pre-Tax | 34 | 1 | 34 | ||
Available-for-sale securities, Pre-tax | 44 | (31) | 71 | (7) | |
Foreign currency translation, Pre-tax | 20 | (26) | 22 | 20 | |
Other Comprehensive Income/(Loss), Pre-tax | (189) | 414 | (543) | 422 | |
Other Comprehensive Income (Loss), Tax, Parenthetical Disclosures [Abstract] | |||||
Derivatives qualifying as cash flow hedges - Unrealized gains/(losses), Tax | 20 | (19) | 62 | (30) | |
Derivatives qualifying as cash flow hedges - Reclassified to net earnings, Tax | 11 | 2 | 20 | ||
Derivatives qualifying as cash flow hedges, Tax | 20 | (8) | 64 | (10) | |
Pension and postretirement benefits - Actuarial gains/(losses), Tax | 83 | (145) | 186 | (103) | |
Pension and postretirement benefits - Amortization, Tax | (9) | (9) | (12) | (15) | |
Pension and postretirement benefits - Curtailments and settlements, Tax | (9) | (12) | (17) | (22) | |
Pension and postretirement benefits, Tax | 65 | (166) | 157 | (140) | |
Unrealized gains/(losses) on securities, Tax | (3) | 9 | (17) | 1 | |
Available-for-sale securities, Tax | (3) | 9 | (17) | 1 | |
Foreign currency translation, Tax | (4) | (6) | 3 | (21) | |
Other comprehensive income/(loss), Tax | 78 | (171) | 207 | (170) | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||
Derivatives qualifying as cash flow hedges - Unrealized gains/(losses), After tax | (39) | 16 | (123) | 40 | |
Derivatives qualifying as cash flow hedges - Reclassified to net earnings, After tax | (5) | (25) | (7) | (43) | |
Derivatives qualifying as cash flow hedges, After tax | (44) | (9) | (130) | (3) | |
Pension and postretirement benefits - Actuarial gains/(losses), After tax | (150) | 267 | (339) | 189 | |
Pension and postretirement benefits - Amortization, After tax | 10 | 15 | 24 | 32 | |
Pension and postretirement benefits - Curtailments and settlements, After tax | 16 | 24 | 30 | 41 | |
Pension and postretirement benefits, After tax | (124) | 306 | (285) | 262 | |
Unrealized gains/(losses) on securities, After tax | 7 | (23) | 20 | (6) | |
Realized losses on securities, After tax | 34 | 1 | 34 | ||
Available-for-sale securities, After tax | 41 | (22) | 54 | (6) | |
Foreign currency translation, After tax | 16 | (32) | 25 | (1) | |
Other Comprehensive Income/(Loss) | (111) | $ 243 | (336) | $ 252 | |
Derivatives qualifying as cash flow hedges | (96) | (96) | $ 34 | ||
Pension and postretirement benefits | (2,365) | (2,365) | (2,080) | ||
Available-for-sale securities | 31 | 31 | (23) | ||
Foreign currency translation | (374) | (374) | (399) | ||
Accumulated other comprehensive loss | $ (2,804) | $ (2,804) | $ (2,468) |
PENSION AND POSTRETIREMENT BE59
PENSION AND POSTRETIREMENT BENEFIT PLANS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Pension, Postretirement And Postemployment Liabilities Statement [Line Items] | |||||
Non-current pension liabilities | $ 1,182 | $ 1,182 | $ 765 | ||
Defined contribution plan expense | 50 | $ 45 | 92 | $ 89 | |
Pension Benefits [Member] | |||||
Pension, Postretirement And Postemployment Liabilities Statement [Line Items] | |||||
Service cost - benefits earned during the period | 7 | 6 | 13 | 12 | |
Interest cost on projected benefit obligation | 49 | 60 | 100 | 121 | |
Expected return on plan assets | (106) | (103) | (210) | (205) | |
Amortization of prior service credits | (1) | (1) | (2) | (2) | |
Amortization of net actuarial loss | 21 | 26 | 40 | 50 | |
Curtailments and settlements | 25 | 36 | 47 | 63 | |
Special termination benefits | 1 | ||||
Net periodic benefit cost/(credit) | (5) | 24 | (11) | 39 | |
Other Benefits [Member] | |||||
Pension, Postretirement And Postemployment Liabilities Statement [Line Items] | |||||
Service cost - benefits earned during the period | 1 | 1 | 2 | 2 | |
Interest cost on projected benefit obligation | 2 | 3 | 5 | 6 | |
Expected return on plan assets | (6) | (6) | (12) | (13) | |
Amortization of prior service credits | (1) | (2) | (2) | (3) | |
Amortization of net actuarial loss | 1 | 2 | |||
Net periodic benefit cost/(credit) | $ (4) | $ (3) | $ (7) | $ (6) |
EMPLOYEE STOCK BENEFIT PLANS (D
EMPLOYEE STOCK BENEFIT PLANS (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 54 | $ 59 | $ 101 | $ 113 |
Income tax benefit | 19 | 20 | 34 | 38 |
Unrecognized compensation cost | 454 | $ 454 | ||
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 2 years 8 months 12 days | |||
Restricted stock units [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 23 | 21 | $ 43 | 42 |
Number of shares granted | 2.1 | |||
Weighted average grant date fair value of grants during the period | $ 61.39 | |||
Market share units [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 9 | 9 | $ 18 | 18 |
Number of shares granted | 0.7 | |||
Weighted average grant date fair value of grants during the period | $ 65.26 | |||
Performance share units [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 22 | $ 29 | $ 40 | $ 53 |
Number of shares granted | 1.1 | |||
Weighted average grant date fair value of grants during the period | $ 64.87 |
LEGAL PROCEEDINGS AND CONTING61
LEGAL PROCEEDINGS AND CONTINGENCIES (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2016USD ($)lawsuits | |
Qui Tam Litigation [Member] | |
Legal Proceedings And Contingencies [Line Items] | |
Number of sales representatives | 3 |
Plavix Product Liability Litigation [Member] | |
Legal Proceedings And Contingencies [Line Items] | |
Number of lawsuits | 5,400 |
Byetta Product Liability Litigation [Member] | |
Legal Proceedings And Contingencies [Line Items] | |
Number of lawsuits | 500 |
Number of plaintiffs settled | 319 |
Number of current plaintiffs | 2,400 |
Abilify Product Liability [Member] | |
Legal Proceedings And Contingencies [Line Items] | |
Number of lawsuits | 40 |
Environmental Proceedings Cercla Matters [Member] | |
Legal Proceedings And Contingencies [Line Items] | |
Loss contingency, Estimate of possible loss | $ | $ 63 |
Shareholder Derivative Litigation [Member] | |
Legal Proceedings And Contingencies [Line Items] | |
Number of lawsuits | 2 |
Litigation settlement, Gross | $ | $ 14.7 |