Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 01, 2017 | Jun. 30, 2016 | |
Entity Information [Line Items] | |||
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 | 1,672,715,340 | ||
Entity Public Float | $ 122,760,450,216 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Amendment Flag | false |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | |||
Net product sales | $ 17,702 | $ 14,045 | $ 11,660 |
Alliance and other revenues | 1,725 | 2,515 | 4,219 |
Total Revenues | 19,427 | 16,560 | 15,879 |
Cost of products sold | 4,946 | 3,909 | 3,932 |
Marketing, selling and administrative | 4,911 | 4,841 | 4,822 |
Research and development | 4,940 | 5,920 | 4,534 |
Other (income)/expense | (1,285) | (187) | 210 |
Total Expenses | 13,512 | 14,483 | 13,498 |
Earnings Before Income Taxes | 5,915 | 2,077 | 2,381 |
Provision for Income Taxes | 1,408 | 446 | 352 |
Net Earnings | 4,507 | 1,631 | 2,029 |
Net Earnings Attributable to Noncontrolling Interest | 50 | 66 | 25 |
Net Earnings Attributable to BMS | $ 4,457 | $ 1,565 | $ 2,004 |
Earnings per Common Share | |||
Basic Earnings Per Common Share Attributable to BMS | $ 2.67 | $ 0.94 | $ 1.21 |
Diluted Earnings per Common Share Attributable to BMS | 2.65 | 0.93 | 1.20 |
Cash dividends declared per common share | $ 1.53 | $ 1.49 | $ 1.45 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest [Abstract] | |||
Net Earnings | $ 4,507 | $ 1,631 | $ 2,029 |
Other Comprehensive Income (Loss), net of taxes and reclassifications to earnings [Abstract] | |||
Derivatives qualifying as cash flow hedges | 4 | (51) | 69 |
Pension and postretirement benefits | (17) | 101 | (324) |
Available-for-sale securities | 16 | (54) | 3 |
Foreign currency translation | (38) | (39) | (32) |
Total Other Comprehensive Income/(Loss) | (35) | (43) | (284) |
Comprehensive Income | 4,472 | 1,588 | 1,745 |
Comprehensive Income Attributable to Noncontrolling Interest | 50 | 66 | 25 |
Comprehensive Income Attributable to BMS | $ 4,422 | $ 1,522 | $ 1,720 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Current Assets: | ||
Cash and cash equivalents | $ 4,237 | $ 2,385 |
Marketable securities, current | 2,113 | 1,885 |
Receivables | 5,543 | 4,299 |
Inventories | 1,241 | 1,221 |
Prepaid expenses and other | 570 | 625 |
Total Current Assets | 13,704 | 10,415 |
Property, plant and equipment | 4,980 | 4,412 |
Goodwill | 6,875 | 6,881 |
Other intangible assets | 1,385 | 1,419 |
Deferred income taxes | 2,996 | 2,844 |
Marketable securities, noncurrent | 2,719 | 4,660 |
Other assets | 1,048 | 1,117 |
Total Assets | 33,707 | 31,748 |
Current Liabilities: | ||
Short-term borrowings and current portion of long-term debt | 992 | 139 |
Accounts payable | 1,664 | 1,565 |
Accrued liabilities | 5,271 | 4,738 |
Deferred income, current | 762 | 1,003 |
Income taxes payable, current | 152 | 572 |
Total Current Liabilities | 8,841 | 8,017 |
Deferred income, noncurrent | 547 | 586 |
Income taxes payable, noncurrent | 973 | 742 |
Pension and other liabilities | 1,283 | 1,429 |
Long-term debt | 5,716 | 6,550 |
Total Liabilities | 17,360 | 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; issued and outstanding 4,129 in 2016 and 4,161 in 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 | 1,725 | 1,459 |
Accumulated other comprehensive loss | (2,503) | (2,468) |
Retained earnings | 33,513 | 31,613 |
Less cost of treasury stock - 536 million common shares in 2016 and 539 million in 2015 | (16,779) | (16,559) |
Total Bristol-Myers Squibb Company Shareholders' Equity | 16,177 | 14,266 |
Noncontrolling interest | 170 | 158 |
Total Equity | 16,347 | 14,424 |
Total Liabilities and Equity | $ 33,707 | $ 31,748 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, Par or Stated Value Per Share | $ 1 | |
Preferred Stock, Shares Authorized | 10,000,000 | |
Preferred Stock, Shares Issued | 4,129 | 4,161 |
Preferred Stock, Shares Outstanding | 4,129 | 4,161 |
Preferred Stock, Liquidation Preference Per Share | $ 50 | |
Common Stock, Par or Stated Value Per Share | $ 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 | 536,000,000 | 539,000,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash Flows From Operating Activities: | |||
Net Earnings | $ 4,507 | $ 1,631 | $ 2,029 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation and amortization, net | 382 | 376 | 467 |
Deferred income taxes | (204) | (347) | (542) |
Stock-based compensation | 205 | 235 | 213 |
Impairment charges | 108 | 192 | 401 |
Pension settlements and amortization | 169 | 245 | 971 |
Divestiture gains and royalties | (1,187) | (490) | (760) |
Asset acquisition charge | 274 | 983 | 148 |
Other adjustments | (44) | 15 | (21) |
Changes in operating assets and liabilities: | |||
Receivables | (803) | (942) | (252) |
Inventories | (152) | 97 | (254) |
Accounts payable | 104 | (919) | (44) |
Deferred income | (64) | 218 | 613 |
Income taxes payable | (545) | 47 | 171 |
Other | 100 | 491 | 8 |
Net Cash Provided by Operating Activities | 2,850 | 1,832 | 3,148 |
Cash Flows From Investing Activities: | |||
Sale and maturities of marketable securities | 4,809 | 2,794 | 4,095 |
Purchase of marketable securities | (3,089) | (3,143) | (5,719) |
Capital expenditures | (1,215) | (820) | (526) |
Divestiture and other proceeds | 1,334 | 708 | 3,585 |
Acquisition and other payments | (359) | (1,111) | (219) |
Net Cash Provided by/(Used in) Investing Activities | 1,480 | (1,572) | 1,216 |
Cash Flows From Financing Activities: | |||
Short-term borrowings, net | 125 | (449) | 244 |
Issuance of long-term debt | 1,268 | ||
Repayment of long-term debt | (15) | (1,957) | (676) |
Interest rate swap contract terminations | 42 | (2) | 105 |
Issuance of common stock | 181 | 266 | 288 |
Repurchase of common stock | (231) | ||
Dividends | (2,547) | (2,477) | (2,398) |
Net Cash Used in Financing Activities | (2,445) | (3,351) | (2,437) |
Effect of Exchange Rates on Cash and Cash Equivalents | (33) | (95) | 58 |
Increase/(Decrease) in Cash and Cash Equivalents | 1,852 | (3,186) | 1,985 |
Cash and Cash Equivalents at Beginning of Year | 2,385 | 5,571 | 3,586 |
Cash and Cash Equivalents at End of Year | $ 4,237 | $ 2,385 | $ 5,571 |
ACCOUNTING POLICIES
ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | ACCOUNTING POLICIES AND RECENTLY ISSUED ACCOUNTING STANDARDS Basis of Consolidation The consolidated financial statements are prepared in conformity with U.S. GAAP, including the accounts of Bristol-Myers Squibb Company and all of its controlled majority-owned subsidiaries and certain variable interest entities. All intercompany balances and transactions are eliminated. Material subsequent events are evaluated and disclosed through the report issuance date. Refer to the Summary of Abbreviated Terms at the end of this 2016 Form 10-K for terms used throughout the document. Alliance and license arrangements are assessed to determine whether the terms provide economic or other control over the entity requiring consolidation of an entity. Entities controlled by means other than a majority voting interest are referred to as variable interest entities and are consolidated when BMS has both the power to direct the activities of the variable interest entity that most significantly impacts its economic performance and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the entity. Use of Estimates and Judgments The preparation of financial statements requires the use of management estimates, judgments and assumptions. The most significant assumptions are estimates 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; determining if an acquisition or divestiture is a business or an asset; and pension and postretirement benefits. Actual results may differ from estimated results. 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 Revenue Recognition Revenue is recognized when persuasive evidence of an arrangement exists, the sales price is fixed or determinable, collectability is reasonably assured and title and substantially all risks and rewards of ownership are transferred, generally at time of shipment (including the supply of commercial products to alliance partners when they are the principal in the end customer sale). However, certain revenue of non-U.S. businesses is recognized on the date of receipt by the customer. Alliance and other revenue related to Abilify* and Atripla* is not recognized until the products are sold to the end customer by the alliance partner. Royalties are recognized when the third-party sales are reliably measurable and collectability is reasonably assured. Refer to “—Note 3 . Alliances” for further detail regarding alliances. Revenue is reduced at the time of recognition for expected sales returns, discounts, rebates and sales allowances based on historical experience updated for changes in facts and circumstances including the impact of applicable healthcare legislation. Revenue is deferred when there is no historical experience with products in a similar therapeutic category or with similar operational characteristics, or until the right of return no longer exists or sufficient historical experience to estimate sales returns is developed. Income Taxes The provision for income taxes includes income taxes paid or payable for the current year plus the change in deferred taxes during the year. Deferred taxes result from differences between the financial and tax basis of assets and liabilities and are adjusted for changes in tax rates and tax laws when changes are enacted. Valuation allowances are recognized to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. The assessment of whether or not a valuation allowance is required often requires significant judgment including the long-range forecast of future taxable income and the evaluation of tax planning initiatives. Adjustments to the deferred tax valuation allowances are made to earnings in the period when such assessments are made. Tax benefits are recognized from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefit recognized in the financial statements for a particular tax position is based on the largest benefit that is more likely than not to be realized upon settlement. Cash and Cash Equivalents Cash and cash equivalents include bank deposits, time deposits, commercial paper and money market funds. Cash equivalents consist of highly liquid investments with original maturities of three months or less at the time of purchase and are recognized at cost, which approximates fair value. Marketable Securities and Investments in Other Companies Marketable securities are classified as “available-for-sale” on the date of purchase and reported at fair value. Fair value is determined based on observable market quotes or valuation models using assessments of counterparty credit worthiness, credit default risk or underlying security and overall capital market liquidity. Investments in 50% or less owned companies are accounted for using the equity method of accounting when the ability to exercise significant influence is maintained. The share of net income or losses of equity investments is included in other (income)/expense. Equity investments are reviewed for impairment by assessing if the decline in market value of the investment below the carrying value is other than temporary, which considers the intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in market value, the duration and extent that the market value has been less than cost and the investee's financial condition. Inventory Valuation Inventories are stated at the lower of average cost or market. Property, Plant and Equipment and Depreciation Expenditures for additions, renewals and improvements are capitalized at cost. Depreciation is computed on a straight-line method based on the estimated useful lives of the related assets ranging from 20 to 50 years for buildings and 3 to 20 years for machinery, equipment and fixtures. Impairment of Long-Lived Assets Current facts or circumstances are periodically evaluated to determine if the carrying value of depreciable assets to be held and used may not be recoverable. If such circumstances exist, an estimate of undiscounted future cash flows generated by the long-lived asset, or appropriate grouping of assets, is compared to the carrying value to determine whether an impairment exists at its lowest level of identifiable cash flows. If an asset is determined to be impaired, the loss is measured based on the difference between the asset’s fair value and its carrying value. An estimate of the asset’s fair value is based on quoted market prices in active markets, if available. If quoted market prices are not available, the estimate of fair value is based on various valuation techniques using unobservable fair value inputs, such as a discounted value of estimated future cash flows. Capitalized Software Eligible costs to obtain internal use software are capitalized and amortized over the estimated useful life of the software. Acquisitions Businesses acquired are consolidated upon obtaining control. The fair value of assets acquired and liabilities assumed are recognized at the date of acquisition. Any excess of the purchase price over the estimated fair values of the net assets acquired is recognized as goodwill. Business acquisition costs are expensed when incurred. Contingent consideration from potential development, regulatory, approval and sales-based milestones and sales-based royalties are included in the purchase price for business combinations and are excluded for asset acquisitions. Amounts allocated to the lead investigational compounds for asset acquisitions are expensed at the date of acquisition. Goodwill, Acquired In-Process Research and Development and Other Intangible Assets The fair value of intangible assets is typically determined using the “income method” utilizing Level 3 fair value inputs. The market participant valuations assume a global view considering all potential jurisdictions and indications based on discounted after-tax cash flow projections, risk adjusted for estimated probability of technical and regulatory success (for IPRD). Finite-lived intangible assets, including licenses, developed technology rights and IPRD projects that reach commercialization are amortized on a straight-line basis over their estimated useful life. Estimated useful lives are determined considering the period the assets are expected to contribute to future cash flows. Goodwill is tested at least annually for impairment by assessing qualitative factors or performing a quantitative analysis in determining whether it is more likely than not that the fair value of net assets are below their carrying amounts. Examples of qualitative factors assessed in 2016 include our share price, financial performance compared to budgets, long-term financial plans, macroeconomic, industry and market conditions as well as the substantial excess of fair value over the carrying value of net assets from the annual impairment test performed in a prior year. Each relevant factor is assessed both individually and in the aggregate. IPRD is tested for impairment on an annual basis and more frequently if events occur or circumstances change that would indicate a potential reduction in the fair values of the assets below their carrying value. If the carrying value of IPRD is determined to exceed the fair value, an impairment loss is recognized for the difference. Finite-lived intangible assets are tested for impairment when facts or circumstances suggest that the carrying value of the asset may not be recoverable. If the carrying value exceeds the projected undiscounted pretax cash flows of the intangible asset, an impairment loss equal to the excess of the carrying value over the estimated fair value (discounted after-tax cash flows) is recognized. Restructuring Restructuring charges are recognized as a result of actions to streamline operations and rationalize manufacturing facilities. Estimating the impact of restructuring plans, including future termination benefits and other exit costs requires judgment. Actual results could vary from these estimates. Contingencies Loss contingencies from legal proceedings and claims may occur from a wide range of matters, including government investigations, shareholder lawsuits, product and environmental liability, contractual claims and tax matters. Accruals are recognized when it is probable that a liability will be incurred and the amount of loss can be reasonably estimated. Gain contingencies (including contingent proceeds related to the divestitures) are not recognized until realized. Legal fees are expensed as incurred. Shipping and Handling Costs Shipping and handling costs are included in marketing, selling and administrative expenses and were $70 million in 2016 , $85 million in 2015 and $115 million in 2014 . Advertising and Product Promotion Costs Advertising and product promotion costs are included in marketing, selling and administrative expenses and were $789 million in 2016 , $825 million in 2015 and $734 million in 2014 . Advertising and product promotion costs are expensed as incurred. Foreign Currency Translation Foreign subsidiary earnings are translated into U.S. dollars using average exchange rates. The net assets of foreign subsidiaries are translated into U.S. dollars using current exchange rates. The U.S. dollar effects that arise from translating the net assets of these subsidiaries at changing rates are recognized in OCI. Research and Development Research and development costs are expensed as incurred. Clinical study costs are accrued over the service periods specified in the contracts and adjusted as necessary based upon an ongoing review of the level of effort and costs actually incurred. Strategic alliances with third parties provide licensing rights to develop, manufacture, market and/or sell pharmaceutical products, the rights to which are owned by the other party. Research and development is recognized net of reimbursements in connection with alliance agreements. Upfront and contingent milestone payments for asset acquisitions of investigational compounds are also included in research and development expenses. Cash Flow Upfront and contingent milestone payments for licensing of investigational compounds are included in operating activities and asset or business acquisitions are included in investing activities. Divestiture proceeds are included in investing activities as well as royalties and other consideration received subsequent to the related sale of the asset or business. Other adjustments reflected in operating activities include divestiture gains and losses and related royalties, research and development asset acquisition charges, gains and losses on debt redemption and changes in the fair value of written option liabilities. Recently Issued Accounting Standards In May 2014, the FASB issued a new accounting 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 and its subsequent amendments that were issued will replace most of the existing revenue recognition standards in U.S. GAAP when it becomes effective on January 1, 2018. A five step model will be utilized to achieve the core principle; (1) identify the customer contract, (2) identify the contract’s performance obligation, (3) determine the transaction price, (4) allocate the transaction price to the performance obligation and (5) recognize revenue when or as a performance obligation is satisfied. 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. Disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows from customer contracts will also be required. The Company’s assessment of the new standard’s impact is substantially complete based on our current contracts. We currently believe the timing of recognizing revenue for the typical net product sale to our customers will not significantly change. However, the new standard will no longer require the transaction price to be fixed or determinable and certain variable consideration might be recognized prior to the occurrence or resolution of the contingent event (subject to a revenue reversal constraint). As a result, certain revenue previously deferred under the current standard because the transaction price was not fixed or determinable (e.g. early access programs) will be accounted for as variable consideration and might be recognized earlier provided such terms are sufficient to reliably estimate the ultimate price expected to be realized. In addition, future royalties related to certain alliance arrangements (e.g. Sanofi and Japan Erbitux* arrangements disclosed in "—Note 3 . Alliances") will be estimated and recognized prior to the third party sale occurring provided it is not probable that the estimated amounts would be reversed in the future. However, the timing of royalties, sales-based milestones and other forms of contingent consideration resulting from the divestiture of businesses (e.g. the diabetes and North American Erbitux* businesses disclosed in "—Note 3 . Alliances") as well as royalties and sales-based royalties from licensing arrangements is not expected to change. The new standard’s guidance pertaining to the separation of licensing rights and related fee recognition is not expected to significantly change the timing of recognizing revenue in our existing alliance arrangements that are currently generating revenue. The Company currently anticipates to adopt the new standard on a modified retrospective basis with the cumulative effect of the change reflected in retained earnings as of January 1, 2018 and not restate prior periods. As a result, certain future royalties discussed above will be estimated and presented as a cumulative effect of an accounting change and excluded from the results of operations beginning in 2018 (other than subsequent significant revisions to the estimated amounts). Variable consideration pertaining to similar arrangements entered into subsequent to the adoption of the new standard will also need to be estimated and accounted for in a comparable manner but the initial estimate will be reflected in revenue and assessed each subsequent reporting period. No significant changes to business processes, systems and controls are currently expected to be required. 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 does not expect the amended standard to have a material impact on the Company’s results of operations. 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 future lease payments for leases with a term longer than 12 months. The guidance is effective beginning in 2019 with early adoption permitted on a modified retrospective approach. Although the Company’s assessment of the amended standard has not been completed, minimal impacts to the results of operations are expected. The undiscounted value of lease obligations is approximately $800 million at December 31, 2016, consisting primarily of facility leases accounted for as operating leases. The initial right-of-use asset and lease liability amount reflected upon adoption will be subject to several factors including the actual lease portfolio from the earliest date of initial application, selection of an appropriate discount rate and determining the individual fixed lease payments and terms including renewal periods reasonably certain to occur. 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 in 2017. The expected reduction of income tax expense for excess tax benefits in 2017 is not expected to be material. The Company will continue its current practice relating to accounting for forfeitures. The cash flow presentation changes discussed above will increase net cash provided by operating activities and net cash used in financing activities by $208 million in 2016 and $273 million in 2015. In June 2016, the 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 in 2020 with early adoption permitted in 2019 on a modified retrospective approach. The Company does not expect the amended standard to have a material impact on the Company’s results of operations. In October 2016, the FASB issued amended guidance on income tax accounting for intra-entity transfers of assets other than inventory. The amended guidance requires that the tax consequences of transfers of assets between members of a consolidated group be recognized in the period the transfer takes place (excluding inventory). The guidance is effective beginning in 2018 with early adoption permitted in the first quarter of 2017 on a modified retrospective approach. The Company will early adopt the amended standard beginning in the first quarter of 2017. As a result, prepaid receivables and deferred tax assets attributed to internal intellectual property transfers of approximately $1 billion will be reduced as a cumulative effect of an accounting change in retained earnings and no longer amortized as a component of income taxes ( $86 million per year). In addition, the tax impact of future internal transfers of intellectual property will be included in income tax expense when transferred and not amortized in subsequent periods. In January 2017, the FASB issued amended guidance that revises the definition of a business. The amendments provide an initial screen that when substantially all of the fair value of the gross assets acquired or disposed of is concentrated in a single identifiable asset or a group of similar identifiable assets, the assets would not represent a business. To be considered a business, there must be an input and a substantive process that together significantly contribute to the ability to create outputs. To be a business without outputs, there will need to be an organized workforce. The amendments also narrow the definition of the term outputs. The guidance is effective beginning in 2018 with early adoption permitted prospectively. The Company is assessing the potential impact of the amended standard. In January 2017, the FASB issued amended guidance that simplifies the recognition and measurement of a goodwill impairment loss by eliminating Step 2 of the quantitative impairment test. As a result, impairment charges will be required for the amount by which the reporting units carrying amount exceeds its fair value up to the amount of its allocated goodwill. The guidance is effective on a prospective basis in 2020, with early adoption permitted for interim or annual goodwill impairment tests performed after January 1, 2017. The Company does not expect the amended standard to have a material impact on the Company’s results of operations. |
BUSINESS SEGMENT INFORMATION
BUSINESS SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [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. Products are sold principally to wholesalers, and to a lesser extent, directly to distributors, retailers, hospitals, clinics, government agencies and pharmacies. Gross revenues to the three largest pharmaceutical wholesalers in the U.S. as a percentage of global gross revenues were as follows: 2016 2015 2014 McKesson Corporation 22 % 21 % 20 % AmerisourceBergen Corporation 18 % 16 % 17 % Cardinal Health, Inc. 14 % 12 % 12 % Selected geographic area information was as follows: Revenues Property, Plant and Equipment Dollars in Millions 2016 2015 2014 2016 2015 United States $ 10,720 $ 8,188 $ 7,716 $ 3,865 $ 3,681 Europe 4,215 3,491 3,592 1,003 616 Rest of the World (a) 3,964 4,142 3,459 112 115 Other (b) 528 739 1,112 — — Total $ 19,427 $ 16,560 $ 15,879 $ 4,980 $ 4,412 (a) Includes Japan which represented 7% , 10% and 6% of total revenues in 2016 , 2015 and 2014 , respectively. (b) Other revenues include royalties and alliance-related revenues for products not sold by our regional commercial organizations. Product revenues were as follows: Year Ended December 31, Dollars in Millions 2016 2015 2014 Oncology Empliciti (elotuzumab) $ 150 $ 3 $ — Erbitux* (cetuximab) — 501 723 Opdivo (nivolumab) 3,774 942 6 Sprycel (dasatinib) 1,824 1,620 1,493 Yervoy (ipilimumab) 1,053 1,126 1,308 Cardiovascular Eliquis (apixaban) 3,343 1,860 774 Immunoscience Orencia (abatacept) 2,265 1,885 1,652 Virology Baraclude (entecavir) 1,192 1,312 1,441 Hepatitis C Franchise 1,578 1,603 256 Reyataz (atazanavir sulfate) Franchise 912 1,139 1,362 Sustiva (efavirenz) Franchise 1,065 1,252 1,444 Neuroscience Abilify* (aripiprazole) 128 746 2,020 Mature Products and All Other 2,143 2,571 3,400 Total Revenues $ 19,427 $ 16,560 $ 15,879 The composition of total revenues was as follows: Year Ended December 31, Dollars in Millions 2016 2015 2014 Net product sales $ 17,702 $ 14,045 $ 11,660 Alliance revenues 1,629 2,408 3,828 Other revenues 96 107 391 Total Revenues $ 19,427 $ 16,560 $ 15,879 |
ALLIANCES
ALLIANCES | 12 Months Ended |
Dec. 31, 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 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. Several products such as Empliciti , Erbitux*, Opdivo , Sprycel , Yervoy , Eliquis , Orencia, Sustiva ( Atripla* ) and Abilify* as well as products comprising the diabetes alliance discussed below and certain mature and other brands were included in alliance arrangements. Payments between alliance partners are accounted for and presented in the results of operations after considering the specific nature of the payment and the underlying activities to which the payments relate. Multiple alliance activities, including the transfer of rights, are only separated into individual units of accounting if they have standalone value from other activities that occur over the life of the arrangements. In these situations, the arrangement consideration is allocated to the activities or rights on a relative selling price basis. If multiple alliance activities or rights do not have standalone value, they are combined into a single unit of accounting. The most common activities between BMS and its alliance partners are presented in results of operations as follows: • When BMS is the principal in the end customer sale, 100% of product sales are included in net product sales. When BMS's alliance partner is the principal in the end customer sale, BMS's contractual share of the third-party sales and/or royalty income are included in alliance revenue as the sale of commercial products are considered part of BMS's ongoing major or central operations. Refer to "Revenue Recognition" included in "—Note 1 . Accounting Policies" for information regarding recognition criteria. • Amounts payable to BMS by alliance partners (who are the principal in the end customer sale) for supply of commercial products are included in alliance revenue as the sale of commercial products are considered part of BMS's ongoing major or central operations. • Profit sharing, royalties and other sales-based fees payable by BMS to alliance partners are included in cost of products sold as incurred. • Cost reimbursements between the parties are recognized as incurred and included in cost of products sold; marketing, selling and administrative expenses; or research and development expenses, based on the underlying nature of the related activities subject to reimbursement. • Upfront and contingent development and approval milestones payable to BMS by alliance partners for investigational compounds and commercial products are deferred and amortized over the shorter of the contractual term or the periods in which the related compounds or products are expected to contribute to future cash flows. The amortization is presented consistent with the nature of the payment under the arrangement. For example, amounts received for investigational compounds are presented in other (income)/expense as the activities being performed at that time are not related to the sale of commercial products that are part of BMS’s ongoing major or central operations; amounts received for commercial products are presented in alliance revenue as the sale of commercial products are considered part of BMS’s ongoing major or central operations (except for the AstraZeneca alliance pertaining to the Amylin products - see further discussion under the specific AstraZeneca alliance disclosure herein). • Upfront and contingent approval milestones payable by BMS to alliance partners for commercial products are capitalized and amortized over the shorter of the contractual term or the periods in which the related products are expected to contribute to future cash flows. The amortization is included in cost of products sold. • Upfront and contingent milestones payable by BMS to alliance partners prior to regulatory approval are expensed as incurred and included in research and development expenses. • Royalties and other contingent consideration payable to BMS by alliance partners related to the divestiture of such businesses are included in other income when earned. • Equity in net income of affiliates is included in other (income)/expense. • All payments between BMS and its alliance partners are presented in cash flows from operating activities, except as otherwise described below. 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. Year Ended December 31, Dollars in Millions 2016 2015 2014 Revenues from alliances: Net product sales $ 5,568 $ 4,308 $ 3,531 Alliance revenues 1,629 2,408 3,828 Total Revenues $ 7,197 $ 6,716 $ 7,359 Payments to/(from) alliance partners: Cost of products sold $ 2,129 $ 1,655 $ 1,394 Marketing, selling and administrative (28 ) 15 134 Research and development 56 693 8 Other (income)/expense (1,009 ) (733 ) (1,076 ) Noncontrolling interest, pretax 16 51 38 Selected Alliance Balance Sheet Information: December 31, Dollars in Millions 2016 2015 Receivables – from alliance partners $ 903 $ 958 Accounts payable – to alliance partners 555 542 Deferred income from alliances (a) 1,194 1,459 (a) Includes unamortized upfront, milestone and other licensing proceeds, revenue deferrals attributed to Atripla* and undelivered elements of diabetes business divestiture proceeds. Amortization of deferred income (primarily related to alliances) was $244 million in 2016 , $307 million in 2015 and $362 million in 2014 . Upfront payments for new licensing and alliance agreements (including options to license or acquire the related assets) charged to research and development expenses were $15 million in 2016 , $619 million in 2015 and $70 million in 2014 . Specific information pertaining to each of our significant alliances is discussed below, including their nature and purpose; the significant rights and obligations of the parties; specific accounting policy elections; and the income statement classification of and amounts attributable to payments between the parties. Pfizer BMS and Pfizer are parties to a worldwide co-development and co-commercialization agreement for Eliquis , an anticoagulant discovered by BMS. Pfizer funds between 50% and 60% of all development costs depending on the study. Profits and losses are shared equally on a global basis except in certain countries where Pfizer commercializes Eliquis and pays BMS compensation based on a percentage of net sales. Upon entering into the agreement, co-exclusive license rights for the product were granted to Pfizer in exchange for an upfront payment and potential milestone payments. Both parties assumed certain obligations to actively participate in the alliance and actively participate in a joint executive committee and various other operating committees and have joint responsibilities for the research, development, distribution, sales and marketing activities of the alliance using resources in their own infrastructures. BMS manufactures the product in the alliance and is the principal in the end customer product sales in the U.S., significant countries in Europe, as well as Canada, Australia, China, Japan and South Korea. In 2015, BMS transferred full commercialization rights to Pfizer in certain smaller countries in order to simplify operations. In the transferred countries, BMS supplies the product to Pfizer at cost plus a percentage of the net sales to end-customers. The Company determined the rights transferred to Pfizer did not have standalone value as such rights were not sold separately by BMS or any other party, nor could Pfizer receive any benefit for the delivered rights without the fulfillment of other ongoing obligations by BMS under the alliance agreement, including the exclusive supply arrangement. As such, the global alliance was treated as a single unit of accounting and upfront proceeds and any subsequent contingent milestone proceeds are amortized over the life of the related product. BMS received $884 million in non-refundable upfront, milestone and other licensing payments related to Eliquis through December 31, 2016 . Amortization of the Eliquis deferred income is included in other income as Eliquis was not a commercial product at the commencement of the alliance. Summarized financial information related to this alliance was as follows: Year Ended December 31, Dollars in Millions 2016 2015 2014 Revenues from Pfizer alliance: Net product sales $ 3,306 $ 1,849 $ 771 Alliance revenues 37 11 3 Total Revenues $ 3,343 $ 1,860 $ 774 Payments to/(from) Pfizer: Cost of products sold – Profit sharing $ 1,595 $ 895 $ 363 Other (income)/expense – Amortization of deferred income (55 ) (55 ) (50 ) Selected Alliance Cash Flow Information: Deferred income — 20 100 Selected Alliance Balance Sheet Information: December 31, Dollars in Millions 2016 2015 Deferred income $ 521 $ 576 Gilead BMS and Gilead have joint ventures in the U.S. (for the U.S. and Canada) and in Europe to develop and commercialize Atripla* (efavirenz 600 mg/ emtricitabine 200 mg/ tenofovir disoproxil fumarate 300 mg), combining Sustiva , a product of BMS, and Truvada* (emtricitabine and tenofovir disoproxil fumarate), a product of Gilead. The joint ventures are consolidated by Gilead. Both parties actively participate in a joint executive committee and various other operating committees with direct oversight over the activities of the joint ventures. The joint ventures purchase Sustiva and Truvada* API in bulk form from the parties and complete the finishing of Atripla* . The joint ventures or Gilead sell and distribute Atripla* and are the principal in the end customer product sales. The parties no longer coordinate joint promotional activities. Alliance revenue recognized for Atripla* include only the bulk efavirenz component of Atripla* which is based on the relative ratio of the average respective net selling prices of Truvada* and Sustiva. Alliance revenue is deferred and the related alliance receivable is not recognized until the combined product is sold to third-party customers. In Europe, following the 2013 loss of exclusivity of Sustiva and effective January 1, 2014, the percentage of Atripla * net sales in Europe recognized by BMS is equal to the difference between the average net selling prices of Atripla* and Truvada* . This alliance will continue in Europe until either party terminates the arrangement or the last patent expires that allows market exclusivity to Atripla*. In the U.S., the agreement may be terminated by Gilead upon the launch of a generic version of Sustiva or by BMS upon the launch of a generic version of Truvada* or its individual components . The loss of exclusivity in the U.S. for Sustiva is expected in December 2017. In the event Gilead terminates the agreement upon the loss of exclusivity for Sustiva, BMS will receive a quarterly royalty payment for 36 months following termination. Such payment in the first 12 months following termination is equal to 55% of Atripla* net sales multiplied by the ratio of the difference in the average net selling prices of Atripla* and Truvada* to the Atripla* average net selling price. In the second and third years following termination, the payment to BMS is reduced to 35% and 15% , respectively, of Atripla* net sales multiplied by the price ratio described above. BMS will continue to supply Sustiva at cost plus a markup to the joint ventures during this three-year period, unless either party elects to terminate the supply arrangement. Summarized financial information related to this alliance was as follows: Year Ended December 31, Dollars in Millions 2016 2015 2014 Revenues from Gilead alliances: Alliance revenues $ 934 $ 1,096 $ 1,255 Equity in net loss of affiliates $ 12 $ 17 $ 39 Selected Alliance Balance Sheet Information: December 31, Dollars in Millions 2016 2015 Deferred income $ 634 $ 699 Otsuka BMS has a worldwide commercialization agreement with Otsuka, to co-develop and co-promote Abilify*, excluding certain Asian countries. The U.S. portion of the agreement expired in April 2015. The agreement expired in all EU countries in June 2014 and in each other non-U.S. country where we have the exclusive right to sell Abilify* , the agreement expires on the later of April 20, 2015 or loss of exclusivity in any such country. Both parties actively participated in joint executive governance and operating committees. Otsuka was responsible for providing all sales force efforts in the U.S. effective January 2013, however, BMS was responsible for certain operating expenses up to various annual limits. BMS purchased the API from Otsuka and completed the manufacturing of the product for subsequent sale to third-party customers in the U.S. and certain other countries. Otsuka assumed responsibility for providing and funding sales force efforts in the EU effective April 2013. BMS also provided certain other services including distribution, customer management and pharmacovigilance. BMS is the principal for the end customer product sales where it is the exclusive distributor for or has an exclusive right to sell Abilify*. Otsuka was the principal for the end customer product sales in the U.S. and in the EU. Alliance revenue only includes BMS’s share of total net sales to third-party customers in these territories. An assessment of BMS's expected annual contractual share was completed each quarterly reporting period and adjusted based upon reported U.S. Abilify* net sales at year end. BMS's annual contractual share was 50% in 2015 and 33% in 2014. The alliance revenue recognized in any interim period or quarter did not exceed the amounts that were due under the contract. BMS’s contractual share of third-party net sales was 65% in the EU. In these countries and the U.S., alliance revenue was recognized when Abilify* was shipped and all risks and rewards of ownership had been transferred to third-party customers. BMS and Otsuka also have an alliance for Sprycel in the U.S., Japan and the EU (the Oncology Territory). Both parties co-promote the product in the U.S. and EU. In February 2015, the co-promotion agreement with Otsuka was terminated in Japan. Both parties actively participate in various governance committees, however, BMS has control over the decision making. BMS is responsible for the development and manufacture of the product and is also the principal in the end customer product sales. Ixempra* (ixabepilone) was included in the above alliance prior to BMS's divestiture of that business in 2015. A fee is paid to Otsuka based on the following percentages of combined annual net sales of Sprycel and Ixempra* in the Oncology Territory (including post divestiture Ixempra* sales): % of Net Sales 2010 - 2012 2013 - 2020 $0 to $400 million 30% 65% $400 million to $600 million 5% 12% $600 million to $800 million 3% 3% $800 million to $1.0 billion 2% 2% In excess of $1.0 billion 1% 1% During these annual periods, Otsuka contributes 20% of the first $175 million of certain commercial operational expenses relating to the Oncology Products in the Oncology Territory and 1% of such costs in excess of $175 million . Summarized financial information related to this alliance was as follows: Year Ended December 31, Dollars in Millions 2016 2015 2014 Revenues from Otsuka alliances: Net product sales $ 1,670 $ 1,501 $ 1,493 Alliance revenues (a) 2 604 1,778 Total Revenues $ 1,672 $ 2,105 $ 3,271 Payments to/(from) Otsuka: Cost of products sold: Oncology fee $ 304 $ 299 $ 297 Royalties 10 30 90 Cost of product supply 30 35 67 (a) Includes the amortization of the extension payment as a reduction to alliance revenue of $21 million in 2015 and $66 million in 2014. Lilly BMS had a commercialization agreement with Lilly through Lilly’s subsidiary ImClone for the co-development and promotion of Erbitux * in the U.S., Canada and Japan. Both parties actively participated in a joint executive committee and various other operating committees and shared responsibilities for research and development using resources in their own infrastructures. Lilly manufactured bulk requirements for Erbitux* in its own facilities and filling and finishing was performed by a third party for which BMS had oversight responsibility. BMS had exclusive distribution rights in North America and was responsible for promotional efforts in North America although Lilly had the right to co-promote in the U.S. at their own expense. BMS was the principal in the end customer product sales in North America and paid Lilly a distribution fee for 39% of Erbitux * net sales in North America plus a share of certain royalties paid by Lilly. BMS’s rights and obligations with respect to the commercialization of Erbitux * in North America would have expired in September 2018. In October 2015, BMS transferred its rights to Erbitux* in North America to Lilly in exchange for sales-based royalties as described below. The transferred rights include, but are not limited to, full commercialization and manufacturing responsibilities. The transaction was accounted for as a business divestiture and resulted in a non-cash charge of $171 million for intangible assets directly related to the business and an allocation of goodwill. BMS will receive royalties through September 2018, which is included in other income when earned. The royalty rates applicable to North America are 38% on Erbitux* net sales up to $165 million in 2015, $650 million in 2016, $650 million in 2017 and $480 million in 2018, plus 20% on net sales in excess of those amounts in each of the respective years. Royalties earned were $227 million in 2016 and $56 million in 2015. BMS shared rights to Erbitux* in Japan under an agreement with Lilly and Merck KGaA and received 50% of the pretax profit from Merck KGaA’s net sales of Erbitux* in Japan which was further shared equally with Lilly. BMS transferred its co-commercialization rights in Japan to Merck KGaA in 2015 in exchange for sales-based royalties through 2032 which is included in other income when earned. Royalties earned were $19 million in 2016 and $14 million in 2015. Summarized financial information related to this alliance was as follows: Year Ended December 31, Dollars in Millions 2016 2015 2014 Revenues from Lilly alliance: Net product sales $ — $ 492 $ 691 Alliance revenues — 9 32 Total revenues $ — $ 501 $ 723 Payments to/(from) Lilly: Cost of products sold: Distribution fees and royalties $ — $ 204 $ 287 Amortization of intangible asset — 11 37 Cost of product supply — 46 69 Other (income)/expense: Royalties (246 ) (70 ) — Divestiture loss — 171 — AstraZeneca Prior to the diabetes business divestiture discussed below, BMS had an alliance with AstraZeneca consisting of three worldwide co-development and commercialization agreements covering (1) Onglyza* and related combination products sold under various names, (2) Farxiga* and related combination products and, (3) beginning in August 2012 after BMS's acquisition of Amylin, Amylin's portfolio of products including Bydureon* , Byetta* , Symlin* and Myalept* , as well as certain assets owned by Amylin, including a manufacturing facility located in West Chester, Ohio. Co-exclusive license rights for the product or products underlying each agreement were granted to AstraZeneca in exchange for an upfront payment and potential milestone payments, and both parties assumed certain obligations to actively participate in the alliance. Both parties actively participated in a joint executive committee and various other operating committees and had joint responsibilities for the research, development, distribution, sales and marketing activities of the alliance using resources in their own infrastructures. BMS manufactured the products in all three alliances and was the principal in the end customer product sales in substantially all countries. For each alliance agreement, the rights transferred to AstraZeneca did not have standalone value as such rights were not sold separately by BMS or any other party, nor could AstraZeneca have received any benefit for the delivered rights without the fulfillment of other ongoing obligations by BMS under the alliance agreements, including the exclusive supply arrangement. As such, each global alliance was treated as a single unit of accounting. As a result, upfront proceeds and any subsequent contingent milestone proceeds were amortized over the life of the related products. In 2012, BMS received a $3.6 billion non-refundable, upfront payment from AstraZeneca in consideration for entering into the Amylin alliance. In 2013, AstraZeneca exercised its option for equal governance rights over certain key strategic and financial decisions regarding the Amylin alliance and paid BMS $135 million as consideration. These payments were accounted for as deferred income and amortized based on the relative fair value of the predominant elements included in the alliance over their estimated useful lives (intangible assets related to Bydureon* with an estimated useful life of 13 years, Byetta* with an estimated useful life of 7 years, Symlin* with an estimated life of 9 years, Myalept * with an estimated useful life of 12 years, and the Amylin manufacturing plant with an estimated useful life of 15 years). The amortization was presented as a reduction to cost of products sold because the alliance assets were acquired shortly before the commencement of the alliance and AstraZeneca was entitled to share in the proceeds from the sale of any of the assets. The amortization of the acquired Amylin intangible assets and manufacturing plant was also presented in cost of products sold. BMS was entitled to reimbursements for 50% of capital expenditures related to the acquired Amylin manufacturing facility. BMS and AstraZeneca also shared in certain tax attributes related to the Amylin alliance. Prior to the termination of the alliance, BMS received non-refundable upfront, milestone and other licensing payments of $300 million related to Onglyza* and $250 million related to Farxiga* . Amortization of the Onglyza* and Farxiga* deferred income was included in other income as Onglyza* and Farxiga* were not commercial products at the commencement of the alliance. Both parties also shared most commercialization and development expenses equally, as well as profits and losses. In February 2014, BMS and AstraZeneca terminated their alliance agreements and BMS sold to AstraZeneca substantially all of the diabetes business comprising the alliance. The divestiture included the shares of Amylin and the resulting transfer of its Ohio manufacturing facility; the intellectual property related to Onglyza* and Farxiga* (including BMS's interest in the out-licensing agreement for Onglyza* in Japan); and the purchase of BMS’s manufacturing facility located in Mount Vernon, Indiana in 2015. Substantially all employees dedicated to the diabetes business were transferred to AstraZeneca. BMS and AstraZeneca entered into several agreements in connection with the sale, including a supply agreement, a development agreement and a transitional services agreement. Under those agreements, BMS is obligated to supply certain products, including the active product ingredients for Onglyza* and Farxiga* through 2020; to perform ongoing development activities for certain clinical trial programs substantially through 2016; and to provide transitional services such as accounting, financial services, customer service, distribution, regulatory, development, information technology and certain other administrative services for various periods in order to facilitate the orderly transfer of the business operations. Consideration for the transaction includes a $2.7 billion payment at closing; contingent regulatory and sales-based milestone payments of up to $1.4 billion (including $800 million related to approval milestones and $600 million related to sales-based milestones, payable in 2020); royalty payments based on net sales through 2025 and payments up to $225 million if and when certain assets are transferred to AstraZeneca. AstraZeneca will also pay BMS for any required product supply at a price approximating the product cost as well as negotiated transitional service fees. Royalty rates on net sales are as follows: 2014 2015 2016 2017 2018 2019 2020 - 2025 Onglyza* and Farxiga* Worldwide Net Sales up to $500 million 44 % 35 % 27 % 12 % 20 % 22 % 14-25% Onglyza* and Farxiga* Worldwide Net Sales over $500 million 3 % 7 % 9 % 12 % 20 % 22 % 14-25% Amylin products U.S. Net Sales — 2 % 2 % 5 % 10 % 12 % 5-12% The stock and asset purchase agreement contained multiple elements to be delivered subsequent to the closing of the transaction, including the China diabetes business (transferred in 2014), the Mount Vernon, Indiana manufacturing facility (transferred in 2015), and the activities under the development and supply agreements. Each of these elements was determined to have a standalone value. As a result, a portion of the consideration received at closing was allocated to the undelivered elements using the relative selling price method after determining the best estimated selling price for each element. The remaining amount of consideration was included in the calculation for the gain on sale of the diabetes business. Contingent milestone and royalty payments are similarly allocated among the underlying elements if and when the amounts are determined to be payable to BMS. Amounts allocated to the sale of the business are immediately recognized in the results of operations. Amounts allocated to the other elements are recognized in the results of operations only to the extent each element has been delivered. Consideration of $3.8 billion was accounted for in 2014 (including royalties and $700 million of contingent regulatory milestone payments related to the approval of Farxiga* in both the U.S. and Japan). Approximately $3.3 billion of the consideration was allocated to the sale of the business and the remaining $492 million was allocated to the undelivered elements described above. The consideration includes $235 million of earned royalties, including $192 million allocated to elements that were delivered. The gain on sale of the diabetes business was $536 million , including $292 million during the third quarter of 2014 resulting primarily from the transfer of the China diabetes business to AstraZeneca. The gain was based on the difference between the consideration allocated to the sale of the business excluding royalties (net of transaction fees) and the carrying value of the diabetes business net assets (including a $600 million allocation of goodwill and the reversal of $821 million of net deferred tax liabilities attributed to Amylin). Consideration of $179 million was received in 2015 for the transfer of the Mount Vernon, Indiana manufacturing facility and related inventories resulting in a gain of $79 million for the amounts allocated to the delivered elements. Consideration allocated to the development and supply agreements are amortized over the applicable service periods. Amortization of deferred income attributed to the development agreement was included in other income as the sale of these services are not considered part of BMS’s ongoing major or central operations. Revenues attributed to the supply agreement were included in alliance revenues. Consideration for the transaction is presented for cash flow purposes based on the allocation process described above, either as an investing activity if attributed to the sale of the business or related assets or as an operating activity if attributed to the transitional services, supply arrangement or development agreement. In September 2015, BMS transferred a percentage of its future royalty rights on Amylin net product sales in the U.S. to CPPIB. The transferred rights represent approximately 70% of potential future royalties BMS is entitled to in 2019 to 2025. In exchange for the transfer, BMS will receive an additional tiered-based royalty on Amylin net product sales in the U.S. from CPPIB in 2016 through 2018. These royalties are presented in other income and were $134 million in 2016 . Summarized financial information related to the AstraZeneca alliances was as follows: Year Ended December 31, Dollars in Millions 2016 2015 2014 Revenues from AstraZeneca alliances: Net product sales $ — $ 14 $ 160 Alliance revenues 129 182 135 Total Revenues $ 129 $ 196 $ 295 Payments to/(from) AstraZeneca: Cost of products sold – Profit sharing $ — $ 1 $ 79 Cost reimbursements from AstraZeneca — — (33 ) Other (income)/expense: Amortization of deferred income (113 ) (105 ) (80 ) Royalties (227 ) (215 ) (192 ) Transitional services (7 ) (12 ) (90 ) Divestiture gain — (82 ) (536 ) Selected Alliance Cash Flow Information: Deferred income 19 34 315 Divestiture and other proceeds 216 374 3,495 Selected Alliance Balance Sheet Information: December 31, Dollars in Millions 2016 2015 Deferred income – Services not yet performed for AstraZeneca $ 38 $ 144 Sanofi BMS and Sanofi have co-development and co-commercialization agreements for Plavix* and Avapro* / Avalide*. Effective January 1, 2013, Sanofi assumed essentially all of the worldwide operations of the alliance with the exception of Plavix* in the U.S. and Puerto Rico where BMS is the operating partner with a 50.1% controlling interest. In exchange for the rights transferred to Sanofi, BMS receives quarterly royalties from January 1, 2013 until December 31, 2018 and a terminal payment from Sanofi of $200 million at the end of 2018. Royalties received from Sanofi in the territory covering the Americas and Australia, opt-out markets, and former development royalties are presented in alliance revenues and were $195 million in 2016 , $211 million in 2015 and $223 million in 2014 . Royalties attributed to the territory covering Europe and Asia continue to be earned by the territory partnership and are included in equity in net income of affiliates. Alliance revenues attributed to the supply of irbesartan API to Sanofi were $80 million in 2015 and $90 million in 2014 . The supply arrangement for irbesartan expired in 2015. Summarized financial information related to this alliance was as follows: Year Ended December 31, Dollars in Millions 2016 2015 2014 Revenues from Sanofi alliances: Net product sales $ 38 $ 110 $ 102 Alliance revenues 200 296 317 Total Revenues $ 238 $ 406 $ 419 Payments to/(from) Sanofi: Equity in net income of affiliates (95 ) (104 ) (146 ) Noncontrolling interest – pretax 16 51 38 Selected Alliance Cash Flow Information: Distributions (to)/from Sanofi – Noncontrolling interest (15 ) (45 ) (49 ) Distributions from Sanofi – Investment in affiliates 99 105 153 Selected Alliance Balance Sheet Information: December 31, Dollars in Millions 2016 2015 Investment in affiliates – territory covering Europe and Asia (a) $ 21 $ 25 Noncontrolling interest 45 44 (a) Included in alliance receivables. The following is summarized financial information for interests in the partnerships with Sanofi for the territory covering Europe and Asia, which are not consolidated but are accounted for using the equity method: Year Ended December 31, Dollars in Millions 2016 2015 2014 Net sales $ 235 $ 257 $ 360 Gross profit 195 213 297 Net income 192 209 292 Cost of products sold for the territory covering Europe and Asia includes discovery royalties of $20 million in 2016 , $22 million in 2015 and $32 million in 2014 , which are paid directly to Sanofi. All other expenses are shared based on the applicable ownership percentages. Current assets and current liabilities include approximately $69 millio |
ACQUISITIONS AND DIVESTITURES
ACQUISITIONS AND DIVESTITURES | 12 Months Ended |
Dec. 31, 2016 | |
Acquisitions and Divestitures [Abstract] | |
Acquisitions and other divestitures [Text Block] | ACQUISITIONS AND DIVESTITURES Acquisitions Acquisitions are evaluated to determine whether it is a business, an asset or a group of assets. The following transactions were accounted for as asset acquisitions since they were determined not to be a business as that term is defined in ASC 805 - Business Combinations primarily because no significant processes were acquired. As a result, the amounts allocated to the lead investigational compounds were expensed and not capitalized. The consideration of each transaction was allocated as follows: Dollars in Millions Year Upfront Payment R&D Expense Deferred Tax Assets (a) Contingent Consideration Cormorant 2016 $ 35 $ 35 $ — $ 485 Padlock 2016 150 139 11 453 $ 185 $ 174 $ 11 $ 938 Cardioxyl 2015 $ 200 $ 167 $ 33 $ 1,875 Flexus (b) 2015 814 800 14 450 $ 1,014 $ 967 $ 47 $ 2,325 iPierian 2014 $ 175 $ 148 $ 27 $ 554 (a) Relates to net operating loss and tax credit carryforwards (b) Includes $14 million of acquisition costs. Cormorant In July 2016, BMS acquired all of the outstanding shares of 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. Contingent consideration includes development and regulatory milestone payments. Padlock In April 2016, BMS acquired all of the outstanding shares of 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 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. Contingent consideration includes development and regulatory milestone payments. Cardioxyl In December 2015, BMS acquired all of the outstanding shares of Cardioxyl, a private biotechnology company focused on the discovery and development of novel therapeutic agents for cardiovascular disease. The acquisition provided BMS with full rights to CXL-1427, a nitroxyl prodrug in Phase II development for acute decompensated heart failure. Contingent consideration includes development, regulatory and sales-based milestone payments. Flexus In April 2015, BMS acquired all of the outstanding shares of Flexus, a private biotechnology company focused on the discovery and development of novel anti-cancer therapeutics. The acquisition provided BMS with full rights to F001287, a preclinical small molecule IDO1-inhibitor targeted immunotherapy. In addition, BMS acquired Flexus's IDO/TDO discovery program which includes its IDO-selective, IDO/TDO dual and TDO-selective compounds. Contingent consideration includes development and regulatory milestone payments. A $100 million milestone was achieved and paid to former shareowners of Flexus in 2016 for the commencement of a Phase I clinical trial and included in R&D expense. iPierian In April 2014, BMS acquired all of the outstanding shares of iPierian, a private biotechnology company focused on new treatments for tauopathies, a class of neurodegenerative diseases. The acquisition provided BMS with full rights to IPN007, a preclinical monoclonal antibody to treat progressive supranuclear palsy and other tauopathies. Contingent consideration includes development and regulatory milestone payments and future royalties on net sales if any of the acquired preclinical assets are approved and commercialized. Divestitures Proceeds (a) Divestiture (Gains) / Losses Royalties Dollars in Millions 2016 2015 2014 2016 2015 2014 2016 2015 2014 Investigational HIV medicines $ 387 $ — $ — $ (272 ) $ — $ — $ — $ — $ — OTC products (Reckitt) 317 — — (277 ) — — — — — Diabetes 333 374 3,495 — (82 ) (536 ) (361 ) (215 ) (192 ) Erbitux* 252 9 — — 171 — (246 ) (70 ) — Recothrom* — 132 — — (59 ) — — — — Mature brand products (Valeant) — 61 — — (88 ) — — — — Ixempra* 13 113 — — (88 ) — (11 ) (8 ) — Other 15 8 70 (15 ) (48 ) (28 ) — — — $ 1,317 $ 697 $ 3,565 $ (564 ) $ (194 ) $ (564 ) $ (618 ) $ (293 ) $ (192 ) (a) Includes royalties received subsequent to the related sale of the asset or business. ViiV Healthcare 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 earned transitional fees of $105 million for certain R&D and other services in 2016. In February 2016, BMS received an upfront payment of $350 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. Other Divestitures Refer to "—Note 3 . Alliances" for a discussion on the divestiture transactions with Reckitt, Lilly, The Medicines Company, Valeant and AstraZeneca. Revenues and pretax earnings related to these businesses were not material in 2016, 2015 and 2014 (excluding the divestiture gains). Assets Held-For-Sale Assets held-for-sale were $134 million at December 31, 2015 and included in prepaid expenses and other. The amount consisted primarily of goodwill related to the investigational HIV medicines business and the business comprising an alliance with Reckitt. The allocation of goodwill was determined using the relative fair value of the applicable business to the Company's reporting unit. Revenues and pretax earnings related to these businesses were not material in 2016, 2015 and 2014 (excluding the divestiture gains). |
OTHER (INCOME)_EXPENSE
OTHER (INCOME)/EXPENSE | 12 Months Ended |
Dec. 31, 2016 | |
Other Nonoperating Income (Expense) [Abstract] | |
Other Income and Other Expense Disclosure [Text Block] | OTHER (INCOME)/EXPENSE Other (income)/expense includes: Year Ended December 31, Dollars in Millions 2016 2015 2014 Interest expense $ 167 $ 184 $ 203 Investment income (105 ) (101 ) (101 ) Provision for restructuring 109 118 163 Litigation and other settlements 47 159 23 Equity in net income of affiliates (77 ) (83 ) (107 ) Divestiture gains (576 ) (196 ) (564 ) Royalties and licensing income (719 ) (383 ) (283 ) Transition and other service fees (238 ) (122 ) (170 ) Pension charges 91 160 877 Intangible asset impairment 15 13 29 Equity investment impairment 45 — — Written option adjustment — (123 ) 32 Loss on debt redemption — 180 45 Other (44 ) 7 63 Other (income)/expense $ (1,285 ) $ (187 ) $ 210 • Litigation and other settlements includes $90 million in 2015 for a contractual dispute related to a license. • Transition and other service fees were related to the divestiture of the diabetes and investigational HIV businesses in 2016 and the diabetes business in 2015 and 2014. • Written option adjustments included the change in fair value of the written option liability attributed to the Reckitt alliance in 2015 and Valeant and Reckitt in 2014. • A debt redemption loss of $180 million resulted from the early redemption of euro notes and a tender offer for certain other debt securities in 2015. • Other includes an unrealized foreign exchange loss of $52 million in 2015 resulting from the remeasurement of the Bolivar-denominated cash and other monetary balances of BMS’s wholly-owned subsidiary in Venezuela as of December 31, 2015. The exchange rate was changed to the SIMADI rate of 200 from the official CENCOEX rate of 6.3 after considering the limited amount of foreign currency exchanged during the second half of 2015, published exchange rates and the continuing deterioration of economic conditions in Venezuela. |
RESTRUCTURING
RESTRUCTURING | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring Charges [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | RESTRUCTURING In October 2016, the Company announced a restructuring to evolve and streamline its operating model and expects to incur charges in connection with employee workforce reductions and early site exits. The charges are expected to be incurred through 2020, range between $1.5 billion to $2.0 billion and consist of employee termination benefit costs, contract termination costs, accelerated depreciation on property, plant and equipment, impairments on long-lived assets and other site shutdown costs. Cash outlays in connection with these actions are expected to be approximately 40% to 50% of the total charges. Charges of approximately $90 million were recognized for these actions during the fourth quarter of 2016, primarily resulting from certain R&D employee workforce reductions and accelerated depreciation on expected early site exits. Restructuring charges are recognized upon meeting certain criteria, including finalization of committed plans, reliable estimates and discussions with local works councils in certain markets. Other restructuring charges recognized prior to the above actions were primarily related to specialty care transformation initiatives designed to create a more simplified organization across all functions and geographic markets. In addition, accelerated depreciation and other charges were incurred in connection with early exits of a manufacturing site in Ireland and R&D site in the U.S. Employee termination benefit costs were incurred for manufacturing, selling, administrative, and R&D employee workforce reductions across all geographic regions of approximately 1,100 in 2016 , 1,200 in 2015 and 1,400 in 2014 . The following tables summarize the charges and activity related to the restructuring actions: Year Ended December 31, Dollars in Millions 2016 2015 2014 Employee termination costs $ 97 $ 110 $ 157 Other termination costs 12 8 6 Provision for restructuring 109 118 163 Accelerated depreciation 72 104 138 Asset impairments 13 1 13 Other shutdown costs 19 10 — Total charges $ 213 $ 233 $ 314 Year Ended December 31, Dollars in Millions 2016 2015 2014 Cost of products sold $ 21 $ 84 $ 151 Research and development 83 31 — Other (income)/expense 109 118 163 Total charges $ 213 $ 233 $ 314 Year Ended December 31, Dollars in Millions 2016 2015 2014 Liability at January 1 $ 125 $ 156 $ 102 Charges 116 133 155 Change in estimates (7 ) (15 ) 8 Provision for restructuring 109 118 163 Foreign currency translation — (15 ) (2 ) Spending (120 ) (134 ) (107 ) Liability at December 31 $ 114 $ 125 $ 156 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | INCOME TAXES The provision/(benefit) for income taxes consisted of: Year Ended December 31, Dollars in Millions 2016 2015 2014 Current: U.S. $ 1,144 $ 337 $ 334 Non-U.S. 468 456 560 Total Current 1,612 793 894 Deferred: U.S. (101 ) (394 ) (403 ) Non-U.S. (103 ) 47 (139 ) Total Deferred (204 ) (347 ) (542 ) Total Provision $ 1,408 $ 446 $ 352 Effective Tax Rate The reconciliation of the effective tax/(benefit) rate to the U.S. statutory Federal income tax rate was: % of Earnings Before Income Taxes Dollars in Millions 2016 2015 2014 Earnings/(Loss) before income taxes: U.S. $ 3,100 $ (1,329 ) $ (349 ) Non-U.S. 2,815 3,406 2,730 Total $ 5,915 $ 2,077 $ 2,381 U.S. statutory rate 2,070 35.0 % 727 35.0 % 833 35.0 % Foreign tax effect of certain operations in Ireland, Puerto Rico and Switzerland (442 ) (7.5 )% (535 ) (25.8 )% (509 ) (21.4 )% U.S. tax effect of capital losses — — — — (361 ) (15.2 )% U.S. Federal valuation allowance release (29 ) (0.5 )% (84 ) (4.0 )% — — U.S. Federal, state and foreign contingent tax matters 87 1.5 % 56 2.7 % 228 9.6 % U.S. Federal research based credits (144 ) (2.4 )% (132 ) (6.4 )% (131 ) (5.4 )% Goodwill allocated to divestitures 34 0.6 % 25 1.2 % 210 8.8 % U.S. Branded Prescription Drug Fee 52 0.9 % 44 2.1 % 84 3.5 % R&D charges 100 1.7 % 369 17.8 % 52 2.2 % Puerto Rico excise tax (131 ) (2.2 )% (55 ) (2.7 )% (28 ) (1.2 )% Domestic manufacturing deduction (122 ) (2.1 )% (17 ) (0.8 )% — — State and local taxes (net of valuation allowance) 23 0.4 % 16 0.8 % 20 0.8 % Foreign and other (90 ) (1.6 )% 32 1.6 % (46 ) (1.9 )% $ 1,408 23.8 % $ 446 21.5 % $ 352 14.8 % The effective tax rate is lower than the U.S. statutory rate of 35% primarily attributable to undistributed earnings of certain foreign subsidiaries that have been considered or are expected to be indefinitely reinvested offshore. U.S. taxes have not been provided on approximately $25.7 billion of undistributed earnings of foreign subsidiaries as of December 31, 2016 . 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 will have to be provided. BMS operates under a favorable tax grant in Puerto Rico not scheduled to expire prior to 2023. The divestiture of certain businesses resulted in capital loss tax benefits including $361 million from the sale of Amylin shares in 2014. Valuation allowances attributed to capital loss carryforwards were released in 2015 following the divestiture of Recothrom* , Ixempra* and other mature brands. Additional reserves of $123 million were established in 2014 for certain transfer pricing matters related to tax periods from 2008 through 2014. Orphan drug credits are included in the U.S. Federal research based credits for all periods presented. Goodwill allocated to business divestitures (including the diabetes business in 2014) was not deductible for tax purposes as well as the U.S. Branded Prescription Drug Fee in all periods. R&D charges resulting primarily from a milestone payment to the former shareholders of Flexus and the acquisitions of Padlock and Cormorant in 2016, Flexus and Cardioxyl in 2015 and iPierian in 2014 were also not deductible for tax purposes. Puerto Rico imposes an excise tax on the gross company purchase price of goods sold from our manufacturer in Puerto Rico. The excise tax is recognized in cost of products sold when the intra-entity sale occurs. For U.S. income tax purposes, the excise tax is not deductible but results in foreign tax credits that are generally recognized in our provision for income taxes when the excise tax is incurred. Increased manufacturing activities for Opdivo resulted in the higher domestic manufacturing deduction in 2016. Deferred Taxes and Valuation Allowance The components of current and non-current deferred income tax assets/(liabilities) were as follows: December 31, Dollars in Millions 2016 2015 Deferred tax assets Foreign net operating loss carryforwards $ 2,945 $ 3,090 U.S. capital loss carryforwards 4 39 State net operating loss and credit carryforwards 114 324 U.S. Federal net operating loss and credit carryforwards 156 173 Deferred income 764 1,009 Milestone payments and license fees 534 560 Pension and postretirement benefits 358 462 Intercompany profit and other inventory items 1,241 607 Other foreign deferred tax assets 188 172 Share-based compensation 114 122 Legal and other settlements 5 63 Repatriation of foreign earnings 12 (1 ) Internal transfer of intellectual property 629 635 Other 287 337 Total deferred tax assets 7,351 7,592 Valuation allowance (3,078 ) (3,534 ) Deferred tax assets net of valuation allowance 4,273 4,058 Deferred tax liabilities Depreciation (125 ) (105 ) Acquired intangible assets (344 ) (338 ) Goodwill and other (855 ) (802 ) Total deferred tax liabilities (1,324 ) (1,245 ) Deferred tax assets, net $ 2,949 $ 2,813 Recognized as: Deferred income taxes – non-current $ 2,996 $ 2,844 Income taxes payable – non-current (47 ) (31 ) Total $ 2,949 $ 2,813 Internal transfers of intellectual property resulted in the deferred tax assets included above and prepaid taxes of $372 million at December 31, 2016 and $484 million of prepaid taxes at December 31, 2015. These assets are being amortized over their expected lives. Refer to Recently Issued Accounting Standards in "—Note 1 . Accounting Policies" for information regarding the impact of amended guidance that the Company expects to adopt in 2017. The U.S. Federal net operating loss carryforwards were $368 million at December 31, 2016 . These carryforwards were acquired as a result of certain acquisitions and are subject to limitations under Section 382 of the Internal Revenue Code. The net operating loss carryforwards expire in varying amounts beginning in 2022. The foreign and state net operating loss carryforwards expire in varying amounts beginning in 2017 (certain amounts have unlimited lives). At December 31, 2016 , a valuation allowance of $3,078 million was established for the following items: $2,894 million primarily for foreign net operating loss and tax credit carryforwards, $101 million for state deferred tax assets including net operating loss and tax credit carryforwards, $11 million for U.S. Federal net operating loss carryforwards and $72 million for other U.S. Federal deferred tax assets. Changes in the valuation allowance were as follows: Year Ended December 31, Dollars in Millions 2016 2015 2014 Balance at beginning of year $ 3,534 $ 4,259 $ 4,623 Provision 39 71 140 Utilization (355 ) (436 ) (109 ) Foreign currency translation (142 ) (366 ) (395 ) Acquisitions 2 6 — Balance at end of year $ 3,078 $ 3,534 $ 4,259 Income tax payments were $2,041 million in 2016 , $577 million in 2015 and $544 million in 2014 . The current tax benefit realized as a result of stock related compensation credited to capital in excess of par value of stock was $92 million in 2016 , $147 million in 2015 and $131 million in 2014 . Business is conducted in various countries throughout the world and is subject to tax in numerous jurisdictions. A significant number of tax returns that are filed are subject to examination by various Federal, state and local tax authorities. Tax examinations are often complex, as tax authorities may disagree with the treatment of items reported requiring several years to resolve. Liabilities are established for possible assessments by tax authorities resulting from known tax exposures including, but not limited to, transfer pricing matters, tax credits and deductibility of certain expenses. Such liabilities represent a reasonable provision for taxes ultimately expected to be paid and may need to be adjusted over time as more information becomes known. The effect of changes in estimates related to contingent tax liabilities is included in the effective tax rate reconciliation above. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows: Year Ended December 31, Dollars in Millions 2016 2015 2014 Balance at beginning of year $ 944 $ 934 $ 756 Gross additions to tax positions related to current year 49 52 106 Gross additions to tax positions related to prior years 49 56 218 Gross additions to tax positions assumed in acquisitions 1 1 — Gross reductions to tax positions related to prior years (22 ) (34 ) (57 ) Settlements (13 ) (46 ) (65 ) Reductions to tax positions related to lapse of statute (4 ) (9 ) (12 ) Cumulative translation adjustment (9 ) (10 ) (12 ) Balance at end of year $ 995 $ 944 $ 934 Additional information regarding unrecognized tax benefits is as follows: Year Ended December 31, Dollars in Millions 2016 2015 2014 Unrecognized tax benefits that if recognized would impact the effective tax rate $ 854 $ 671 $ 668 Accrued interest 112 93 96 Accrued penalties 17 16 17 Interest expense 22 2 27 Penalty expense/(benefit) 4 1 (7 ) Accrued interest and penalties payable for unrecognized tax benefits are included in either current or non-current income taxes payable. Interest and penalties related to unrecognized tax benefits are included in income tax expense. BMS is currently under examination by a number of tax authorities, including but not limited to the major tax jurisdictions listed in the table below, which have proposed or are considering proposing material adjustments to tax for issues such as transfer pricing, certain tax credits and the deductibility of certain expenses. BMS estimates that it is reasonably possible that the total amount of unrecognized tax benefits at December 31, 2016 will decrease in the range of approximately $255 million to $315 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, primarily settlement related, will involve the payment of additional taxes, the adjustment of certain deferred taxes and/or the recognition of tax benefits. It is reasonably possible that new issues will be raised by tax authorities that may increase unrecognized tax benefits; however, an estimate of such increases cannot reasonably be made at this time. BMS believes that it has adequately provided for all open tax years by tax jurisdiction. The following is a summary of major tax jurisdictions for which tax authorities may assert additional taxes based upon tax years currently under audit and subsequent years that will likely be audited: U.S. 2008 to 2016 Canada 2006 to 2016 France 2013 to 2016 Germany 2007 to 2016 Italy 2011 to 2016 Mexico 2011 to 2016 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | EARNINGS PER SHARE Year Ended December 31, Amounts in Millions, Except Per Share Data 2016 2015 2014 Net Earnings Attributable to BMS used for Basic and Diluted EPS Calculation $ 4,457 $ 1,565 $ 2,004 Weighted-average common shares outstanding - basic 1,671 1,667 1,657 Contingently convertible debt common stock equivalents — — 1 Incremental shares attributable to share-based compensation plans 9 12 12 Weighted-average common shares outstanding - diluted 1,680 1,679 1,670 Earnings per share - basic $ 2.67 $ 0.94 $ 1.21 Earnings per share - diluted $ 2.65 $ 0.93 $ 1.20 |
FINANCIAL INSTRUMENTS AND FAIR
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2016 | |
Financial Instruments [Abstract] | |
Financial Instruments [Text Block] | FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS Financial instruments include cash and cash equivalents, marketable securities, accounts receivable and payable, debt instruments and derivatives. Changes in exchange rates and interest rates create exposure to market risk. Certain derivative financial instruments are used when available on a cost-effective basis to hedge the underlying economic exposure. These instruments qualify as cash flow, net investment and fair value hedges upon meeting certain criteria, including effectiveness of offsetting hedged exposures. Changes in fair value of derivatives that do not qualify for hedge accounting are recognized in earnings as they occur. Derivative financial instruments are not used for trading purposes. Financial instruments are subject to counterparty credit risk which is considered as part of the overall fair value measurement. Counterparty credit risk is monitored on an ongoing basis and mitigated by limiting amounts outstanding with any individual counterparty, utilizing conventional derivative financial instruments and only entering into agreements with counterparties that meet high credit quality standards. The consolidated financial statements would not be materially impacted if any counterparty failed to perform according to the terms of its agreement. Collateral is not required by any party whether derivatives are in an asset or liability position under the terms of the agreements. Fair Value Measurements – The fair value of financial instruments are classified into one of the following categories: Level 1 inputs utilize unadjusted quoted prices in active markets accessible at the measurement date for identical assets or liabilities. The fair value hierarchy provides the highest priority to Level 1 inputs. Level 2 inputs utilize observable prices for similar instruments and quoted prices for identical or similar instruments in non-active markets. Additionally, certain corporate debt securities utilize a third-party matrix pricing model using significant inputs corroborated by market data for substantially the full term of the assets. Equity and fixed income funds are primarily invested in publicly traded securities valued at the respective net asset value of the underlying investments. Level 2 derivative instruments are valued using LIBOR yield curves, less credit valuation adjustments, and observable forward foreign exchange rates at the reporting date. Valuations of derivative contracts may fluctuate considerably from volatility in underlying foreign currencies and underlying interest rates driven by market conditions and the duration of the contract. Level 3 unobservable inputs are used when little or no market data is available. There were no Level 3 financial assets or liabilities as of December 31, 2016 and 2015 . Financial assets and liabilities measured at fair value on a recurring basis are summarized below: December 31, 2016 December 31, 2015 Dollars in Millions Level 1 Level 2 Level 1 Level 2 Cash and cash equivalents - Money market and other securities $ — $ 3,532 $ — $ 1,825 Marketable securities: Certificates of deposit — 27 — 804 Commercial paper — 750 — — Corporate debt securities — 3,947 — 5,638 Equity funds — 101 — 92 Fixed income funds — 7 — 11 Derivative assets — 75 — 96 Equity investments 24 — 60 — Derivative liabilities — (30 ) — (18 ) Available-for-sale Securities The following table summarizes available-for-sale securities: Dollars in Millions Amortized Gross Gross Fair Value December 31, 2016 Certificates of deposit $ 27 $ — $ — $ 27 Commercial paper 750 — — 750 Corporate debt securities 3,945 10 (8 ) 3,947 Equity investments 31 — (7 ) 24 Total $ 4,753 $ 10 $ (15 ) $ 4,748 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 December 31, December 31, Current marketable securities (a) $ 2,113 $ 1,885 Non-current marketable securities (b) 2,719 4,660 Other assets 24 60 Total $ 4,856 $ 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 $108 million at December 31, 2016 and $103 million at December 31, 2015 and were included in current marketable securities. Changes in fair value were not significant. (b) All non-current marketable securities mature within five years as of December 31, 2016 and 2015 . Qualifying Hedges The following summarizes the fair value of outstanding derivatives: December 31, 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 Prepaid expenses and other $ 250 $ — $ — $ — Interest rate swap contracts Other assets 500 1 1,100 31 Interest rate swap contracts Accrued liabilities 500 — — — Interest rate swap contracts Pension and other liabilities 255 (3 ) 650 (1 ) Forward starting interest rate swap contracts Prepaid expenses and other 500 8 — — Forward starting interest rate swap contracts Other assets — — 500 15 Forward starting interest rate swap contracts Accrued liabilities 250 (11 ) — — Forward starting interest rate swap contracts Pension and other liabilities — — 250 (7 ) Foreign currency forward contracts Prepaid expenses and other 967 66 1,016 50 Foreign currency forward contracts Accrued liabilities 198 (9 ) 342 (5 ) Derivatives not designated as hedging instruments: Foreign currency forward contracts Prepaid expenses and other 106 — — — Foreign currency forward contracts Accrued liabilities 291 (4 ) 445 (5 ) Foreign currency forward contracts Pension and other liabilities 69 (3 ) — — Cash Flow Hedges — Foreign currency forward contracts are used to hedge certain forecasted intercompany inventory purchase transactions and certain other foreign currency transactions. The effective portion of changes in fair value for contracts designated as cash flow hedges are temporarily reported in accumulated other comprehensive loss and included in earnings when the hedged item affects earnings. The net gains on foreign currency forward contracts are expected to be reclassified to net earnings (primarily included in cost of products sold) within the next two years. The notional amount of outstanding foreign currency forward contracts was primarily attributed to the euro ( $617 million ) and Japanese yen ( $321 million ) at December 31, 2016 . In 2015, BMS entered into $750 million of forward starting interest rate swap contracts maturing in March 2017 to hedge the variability of probable forecasted interest expense associated with potential future issuances of debt. The contracts are designated as cash flow hedges with the effective portion of fair value changes included in other comprehensive income. The earnings impact related to discontinued cash flow hedges and hedge ineffectiveness was not significant during all periods presented. Cash flow hedge accounting is discontinued when the forecasted transaction is no longer probable of occurring within 60 days after the originally forecasted date or when the hedge is no longer effective. Assessments to determine whether derivatives designated as qualifying hedges are highly effective in offsetting changes in the cash flows of hedged items are performed at inception and on a quarterly basis. Net Investment Hedges — Non-U.S. dollar borrowings of €950 million ( $993 million ) at December 31, 2016 are designated to hedge the foreign currency exposures of the net investment in certain foreign affiliates. These borrowings are designated as net investment hedges and recognized in long term debt. The effective portion of foreign exchange gains on the remeasurement of euro debt was $48 million , $80 million , and $79 million for 2016, 2015 and 2014, respectively, and were recorded in the foreign currency translation component of accumulated other comprehensive loss with the related offset in long-term debt. Fair Value Hedges — Fixed-to-floating interest rate swap contracts are designated as fair value hedges used as an interest rate risk management strategy to create an appropriate balance of fixed and floating rate debt. The contracts and underlying debt for the hedged benchmark risk are recorded at fair value. The effective interest rate for the contracts is one-month LIBOR ( 0.70% as of December 31, 2016 ) plus an interest rate spread ranging from (0.1)% to 4.6% . When the underlying swap is terminated prior to maturity, the fair value basis adjustment to the underlying debt instrument is amortized as a reduction to interest expense over the remaining life of the debt. The notional amount of fixed-to-floating interest rate swap contracts executed was $255 million in 2016 and $200 million in 2014. The notional amount of fixed-to-floating interest rate swap contracts terminated was $500 million in 2016, $147 million in 2015 and $426 million in 2014 generating proceeds of $43 million in 2016, $28 million in 2015 and $119 million in 2014 (including accrued interest). Additional contracts were terminated in connection with debt redemptions in 2015 and 2014. Debt Obligations Short-term borrowings and the current portion of long-term debt includes: December 31, Dollars in Millions 2016 2015 Bank drafts and short-term borrowings $ 243 $ 139 Current portion of long-term debt 749 — Total $ 992 $ 139 The average amount of commercial paper outstanding was $254 million at a weighted-average interest rate of 0.16% during 2015. The maximum month end amount of commercial paper outstanding was $755 million with no outstanding borrowings at December 31, 2015. There were no commercial paper borrowings in 2016. Long-term debt and the current portion of long-term debt includes: December 31, Dollars in Millions 2016 2015 Principal Value: 0.875% Notes due 2017 $ 750 $ 750 1.750% Notes due 2019 500 500 2.000% Notes due 2022 750 750 7.150% Notes due 2023 302 302 3.250% Notes due 2023 500 500 1.000% Euro Notes due 2025 601 630 6.800% Notes due 2026 256 256 1.750% Euro Notes due 2035 601 630 5.875% Notes due 2036 404 404 6.125% Notes due 2038 278 278 3.250% Notes due 2042 500 500 4.500% Notes due 2044 500 500 6.880% Notes due 2097 260 260 0% - 5.75% Other - maturing 2017 - 2030 59 79 Subtotal 6,261 6,339 Adjustments to Principal Value: Fair value of interest rate swap contracts (2 ) 30 Unamortized basis adjustment from swap terminations 287 272 Unamortized bond discounts and issuance costs (81 ) (91 ) Total $ 6,465 $ 6,550 Current portion of long-term debt $ 749 $ — Long-term debt 5,716 6,550 The fair value of long-term debt was $6,932 million and $6,909 million at December 31, 2016 and 2015 , respectively, and was estimated using Level 2 inputs which are based upon the quoted market prices for the same or similar debt instruments. The fair value of short-term borrowings approximates the carrying value due to the short maturities of the debt instruments. Senior unsecured notes were issued in a registered public offerings in 2015. The notes rank equally in right of payment with all of BMS's existing and future senior unsecured indebtedness and are redeemable in whole or in part, at any time at a predetermined redemption price. BMS also terminated forward starting interest rate swap contracts entered into during 2015, resulting in an unrealized loss in other comprehensive income. The following table summarizes the issuance of long-term debt obligations in 2015 (none in 2016 and 2014): 2015 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 ) The following summarizes the debt redemption activity for 2015 and 2014 (none in 2016): Dollars in Millions 2015 2014 Principal amount $ 1,624 $ 582 Carrying value 1,795 633 Debt redemption price 1,957 676 Notional amount of interest rate swap contracts terminated 735 500 Interest rate swap termination payments 11 4 Loss on debt redemption (a) 180 45 (a) Including acceleration of debt issuance costs, loss on interest rate lock contract and other related fees. Interest payments were $191 million in 2016 , $205 million in 2015 and $238 million in 2014 net of amounts received from interest rate swap contracts. We currently have two separate $1.5 billion revolving credit facilities from a syndicate of lenders. The facilities provide for customary terms and conditions with no financial covenants and were extended to October 2020 and July 2021. Each facility is extendable annually by one year on the anniversary date with the consent of the lenders. No borrowings were outstanding under either revolving credit facility at December 31, 2016 or 2015 . Available financial guarantees provided in the form of stand-by letters of credit and performance bonds were $812 million at December 31, 2016 . Stand-by letters of credit are issued through financial institutions in support of guarantees for various obligations. Performance bonds are issued to support a range of ongoing operating activities, including sale of products to hospitals and foreign ministries of health, bonds for customs, duties and value added tax and guarantees related to miscellaneous legal actions. A significant majority of the outstanding financial guarantees will expire within the year and are not expected to be funded. |
RECEIVABLES
RECEIVABLES | 12 Months Ended |
Dec. 31, 2016 | |
Accounts Receivable, Net [Abstract] | |
Receivables [Text Block] | RECEIVABLES December 31, Dollars in Millions 2016 2015 Trade receivables $ 3,948 $ 3,070 Less charge-backs and cash discounts (126 ) (97 ) Less bad debt allowances (48 ) (25 ) Net trade receivables 3,774 2,948 Alliance receivables 903 958 Prepaid and refundable income taxes 627 182 Other 239 211 Receivables $ 5,543 $ 4,299 Non-U.S. receivables sold on a nonrecourse basis were $618 million in 2016 , $476 million in 2015 , and $812 million in 2014 . In the aggregate, receivables from three pharmaceutical wholesalers in the U.S. represented 66% and 53% of total trade receivables at December 31, 2016 and 2015 , respectively. Changes to the allowances for bad debt, charge-backs and cash discounts were as follows: Year Ended December 31, Dollars in Millions 2016 2015 2014 Balance at beginning of year $ 122 $ 93 $ 89 Provision 1,613 1,059 773 Utilization (1,561 ) (1,030 ) (769 ) Balance at end of year $ 174 $ 122 $ 93 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2016 | |
Inventory, Net [Abstract] | |
Inventories [Text Block] | INVENTORIES December 31, Dollars in Millions 2016 2015 Finished goods $ 310 $ 381 Work in process 988 868 Raw and packaging materials 264 199 Inventories $ 1,562 $ 1,448 Inventories $ 1,241 $ 1,221 Other assets 321 227 Other assets include inventory pending regulatory approval of $54 million at December 31, 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 | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Text Block] | PROPERTY, PLANT AND EQUIPMENT AND LEASES December 31, Dollars in Millions 2016 2015 Land $ 107 $ 107 Buildings 4,930 4,515 Machinery, equipment and fixtures 3,287 3,347 Construction in progress 849 662 Gross property, plant and equipment 9,173 8,631 Less accumulated depreciation (4,193 ) (4,219 ) Property, plant and equipment $ 4,980 $ 4,412 Depreciation expense was $448 million in 2016 , $500 million in 2015 and $543 million in 2014 . Annual minimum rental commitments for non-cancelable operating leases (primarily real estate and motor vehicles) are approximately $100 million in each of the next five years and an aggregate $300 million thereafter. Operating lease expense was approximately $145 million in 2016 and $140 million in 2015 and 2014 . Sublease income and capital lease obligations were not material for all periods presented. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | GOODWILL AND OTHER INTANGIBLE ASSETS December 31, Dollars in Millions Estimated Useful Lives 2016 2015 Goodwill $ 6,875 $ 6,881 Other intangible assets: Licenses 5 – 15 years $ 564 $ 574 Developed technology rights 9 – 15 years 2,357 2,357 Capitalized software 3 – 10 years 1,441 1,302 IPRD 107 120 Gross other intangible assets 4,469 4,353 Less accumulated amortization (3,084 ) (2,934 ) Total other intangible assets $ 1,385 $ 1,419 Amortization expense of other intangible assets was $178 million in 2016 , $183 million in 2015 and $286 million in 2014 . Future annual amortization expense of other intangible assets is expected to be approximately $220 million in 2017 , $200 million in 2018 , $170 million in 2019 , $130 million in 2020 , and $100 million in 2021 . Other intangible asset impairment charges were $33 million in 2016 , $181 million in 2015 and $380 million in 2014 . A $160 million IPRD impairment charge was recognized in 2015 for BMS-986020 (LPA1 Antagonist) which was in Phase II development for treatment of IPF. The full write-off was required after considering the occurrence of certain adverse events, voluntary suspension of the study and an internal assessment indicating a significantly lower likelihood of regulatory and commercial success. BMS acquired BMS-986020 with its acquisition of Amira Pharmaceuticals, Inc. in 2011. In addition, a contingent consideration liability of $8 million related to the acquisition was also reversed because of the lower likelihood of success. A $310 million IPRD impairment charge was recognized in 2014 for peginterferon lambda which was in Phase III development for treatment of HCV. The full write-off was required after assessing the potential commercial viability of the asset and estimating its fair value. The assessment considered the lower likelihood of filing for registration in certain markets after completing revised projections of revenues and expenses. A significant decline from prior projected revenues resulted from the global introduction of oral non-interferon products being used to treat patients with HCV and no other alternative uses for the product. |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2016 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Liabilities [Text Block] | ACCRUED LIABILITIES December 31, Dollars in Millions 2016 2015 Accrued rebates and returns $ 1,680 $ 1,324 Employee compensation and benefits 818 904 Accrued research and development 718 553 Dividends payable 660 655 Royalties 246 161 Branded Prescription Drug Fee 234 112 Restructuring 90 89 Pension and postretirement benefits 44 47 Litigation and other settlements 43 189 Other 738 704 Total accrued liabilities $ 5,271 $ 4,738 |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | EQUITY Common Stock Capital in Excess of Par Value of Stock Accumulated Other Comprehensive Loss Retained Earnings Treasury Stock Noncontrolling Interest Dollars and Shares in Millions Shares Par Value Shares Cost Balance at January 1, 2014 2,208 $ 221 $ 1,922 $ (2,141 ) $ 32,952 559 $ (17,800 ) $ 82 Net earnings — — — — 2,004 — — 39 Other comprehensive loss — — — (284 ) — — — — Cash dividends — — — — (2,415 ) — — — Stock compensation — — (393 ) — — (11 ) 755 — Debt conversion — — (22 ) — — (1 ) 53 — Variable interest entity — — — — — — — 59 Distributions — — — — — — — (49 ) Balance at December 31, 2014 2,208 221 1,507 (2,425 ) 32,541 547 (16,992 ) 131 Net earnings — — — — 1,565 — — 84 Other comprehensive loss — — — (43 ) — — — — Cash dividends — — — — (2,493 ) — — — Stock compensation — — (48 ) — — (8 ) 431 — Debt conversion — — — — — — 2 — Distributions — — — — — — — (57 ) Balance at December 31, 2015 2,208 221 1,459 (2,468 ) 31,613 539 (16,559 ) 158 Net earnings — — — — 4,457 — — 50 Other comprehensive loss — — — (35 ) — — — — Cash dividends — — — — (2,557 ) — — — Stock repurchase program — — — — — 4 (231 ) — Stock compensation — — 266 — — (7 ) 11 — Distributions — — — — — — — (38 ) Balance at December 31, 2016 2,208 $ 221 $ 1,725 $ (2,503 ) $ 33,513 536 $ (16,779 ) $ 170 Treasury stock is recognized at the cost to reacquire the shares. Shares issued from treasury are recognized utilizing the first-in first-out method. In October 2016, the Board of Directors approved a new share repurchase program authorizing the repurchase of an additional $3.0 billion of common stock. Repurchases may be made either in the open market or through private transactions, including under repurchase plans established in accordance with Rule 10b5-1 under the Securities Exchange Act of 1934. The stock repurchase program does not have an expiration date and may be suspended or discontinued at any time. On February 21, 2017, BMS entered into ASR agreements with each of Goldman, Sachs & Co. and Morgan Stanley & Co. LLC to repurchase approximately $2.0 billion of common stock in the aggregate. The ASR will be funded through a combination of debt and cash and are part of the existing share repurchase authorization. The total number of shares ultimately repurchased under the ASR will be determined upon final settlement and based on a discount to the volume-weighted average price of BMS's common stock during the ASR period which is expected to be completed by June 30, 2017. The components of other comprehensive income/(loss) were as follows: Year Ended December 31, 2016 2015 2014 Dollars in Millions Pretax Tax After Tax Pretax Tax After Tax Pretax Tax After Tax Derivatives qualifying as cash flow hedges (a) Unrealized gains/(losses) $ (5 ) $ — $ (5 ) $ 59 $ (22 ) $ 37 $ 139 $ (45 ) $ 94 Reclassified to net earnings 12 (3 ) 9 (130 ) 42 (88 ) (41 ) 16 (25 ) Derivatives qualifying as cash flow hedges 7 (3 ) 4 (71 ) 20 (51 ) 98 (29 ) 69 Pension and other postretirement benefits: Actuarial losses (126 ) (3 ) (129 ) (88 ) 27 (61 ) (1,414 ) 464 (950 ) Amortization (b) 78 (25 ) 53 85 (28 ) 57 104 (37 ) 67 Settlements and curtailments (c) 91 (32 ) 59 160 (55 ) 105 867 (308 ) 559 Pension and other postretirement benefits 43 (60 ) (17 ) 157 (56 ) 101 (443 ) 119 (324 ) Available-for-sale securities: Unrealized gains/(losses) (12 ) (1 ) (13 ) (71 ) 14 (57 ) 10 (6 ) 4 Realized (gains)/losses (c) 29 — 29 3 — 3 (1 ) — (1 ) Available-for-sale securities 17 (1 ) 16 (68 ) 14 (54 ) 9 (6 ) 3 Foreign currency translation (33 ) (5 ) (38 ) (17 ) (22 ) (39 ) (8 ) (24 ) (32 ) Total Other Comprehensive Income/(Loss) $ 34 $ (69 ) $ (35 ) $ 1 $ (44 ) $ (43 ) $ (344 ) $ 60 $ (284 ) (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: December 31, Dollars in Millions 2016 2015 Derivatives qualifying as cash flow hedges $ 38 $ 34 Pension and other postretirement benefits (2,097 ) (2,080 ) Available-for-sale securities (7 ) (23 ) Foreign currency translation (437 ) (399 ) Accumulated other comprehensive loss $ (2,503 ) $ (2,468 ) |
PENSION AND POSTRETIREMENT BENE
PENSION AND POSTRETIREMENT BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | PENSION AND POSTRETIREMENT BENEFIT PLANS BMS sponsors defined benefit pension plans, defined contribution plans and termination indemnity plans for regular full-time employees. The principal defined benefit pension plan is the Bristol-Myers Squibb Retirement Income Plan, covering most U.S. employees and representing approximately 66% of the consolidated pension plan assets and 61% of the obligations. Future benefits related to service for this plan were eliminated in 2009. BMS contributes at least the minimum amount required by the ERISA. Plan benefits are based primarily on the participant’s years of credited service and final average compensation. Plan assets consist principally of equity and fixed-income securities. The net periodic benefit cost/(credit) of defined benefit pension plans includes: Dollars in Millions 2016 2015 2014 Service cost — benefits earned during the year $ 24 $ 25 $ 34 Interest cost on projected benefit obligation 192 242 305 Expected return on plan assets (418 ) (405 ) (508 ) Amortization of prior service credits (3 ) (3 ) (3 ) Amortization of net actuarial loss 84 91 110 Curtailments — (1 ) 1 Settlements 91 161 866 Special termination benefits 1 — 14 Net periodic benefit cost/(credit) $ (29 ) $ 110 $ 819 In September 2014, BMS and Fiduciary Counselors Inc., as an independent fiduciary of the Bristol-Myers Squibb Company Retirement Income Plan, entered into a definitive agreement to transfer certain U.S. pension assets to Prudential to settle approximately $1.5 billion of pension obligations. BMS purchased a group annuity contract from Prudential in December 2014, who irrevocably assumed the obligation to make future annuity payments to certain BMS retirees. The transaction does not change the amount of the monthly pension benefit received by affected retirees and surviving beneficiaries and resulted in a pretax settlement charge of $713 million . Pension settlement charges were also recognized after determining the annual lump sum payments will exceed the annual interest and service costs for certain pension plans, including the primary U.S. pension plan in 2016 , 2015 and 2014 . Changes in defined benefit pension plan obligations, assets, funded status and amounts recognized in the consolidated balance sheets were as follows: Dollars in Millions 2016 2015 Benefit obligations at beginning of year $ 6,418 $ 7,068 Service cost—benefits earned during the year 24 25 Interest cost 192 242 Settlements (173 ) (336 ) Actuarial (gains)/losses 253 (321 ) Benefits paid (109 ) (105 ) Foreign currency and other (165 ) (155 ) Benefit obligations at end of year $ 6,440 $ 6,418 Fair value of plan assets at beginning of year $ 5,687 $ 6,148 Actual return on plan assets 513 (5 ) Employer contributions 81 118 Settlements (173 ) (336 ) Benefits paid (109 ) (105 ) Foreign currency and other (168 ) (133 ) Fair value of plan assets at end of year $ 5,831 $ 5,687 Funded status $ (609 ) $ (731 ) Assets/(Liabilities) recognized: Other assets $ 26 $ 71 Accrued liabilities (35 ) (37 ) Pension and other liabilities (600 ) (765 ) Funded status $ (609 ) $ (731 ) Recognized in accumulated other comprehensive loss: Net actuarial losses $ 3,123 $ 3,140 Prior service credit (39 ) (39 ) Total $ 3,084 $ 3,101 The accumulated benefit obligation for defined benefit pension plans was $6,381 million and $6,363 million at December 31, 2016 and 2015 , respectively. Additional information related to pension plans was as follows: Dollars in Millions 2016 2015 Pension plans with projected benefit obligations in excess of plan assets: Projected benefit obligation $ 6,195 $ 5,310 Fair value of plan assets 5,559 4,508 Pension plans with accumulated benefit obligations in excess of plan assets : Accumulated benefit obligation $ 5,978 $ 5,156 Fair value of plan assets 5,380 4,386 Actuarial Assumptions Weighted-average assumptions used to determine defined benefit pension plan obligations at December 31 were as follows: 2016 2015 Discount rate 3.5 % 3.8 % Rate of compensation increase 0.5 % 0.5 % Weighted-average actuarial assumptions used to determine defined benefit pension plan net periodic benefit (credit)/cost for the years ended December 31 were as follows: 2016 2015 2014 Discount rate 3.8 % 3.6 % 4.2 % Expected long-term return on plan assets 7.2 % 7.2 % 7.6 % Rate of compensation increase 0.5 % 0.8 % 2.3 % The yield on high quality corporate bonds matching the duration of the benefit obligations is used in determining the discount rate. The Citi Pension Discount curve is used in developing the discount rate for the U.S. plans. The expected return on plan assets was determined using the expected rate of return and a calculated value of assets, referred to as the “market-related value” which approximated the fair value of plan assets at December 31, 2016 . Differences between assumed and actual returns are amortized to the market-related value on a straight-line basis over a three-year period. Several factors are considered in developing the expected return on plan assets, including long-term historical returns and input from external advisors. Individual asset class return forecasts were developed based upon market conditions, for example, price-earnings levels and yields and long-term growth expectations. The expected long-term rate of return is the weighted-average of the target asset allocation of each individual asset class. Historical long-term actual annualized returns for U.S. pension plans were as follows: 2016 2015 2014 10 years 6.1 % 6.7 % 7.9 % 15 years 7.1 % 6.0 % 6.4 % 20 years 7.7 % 8.1 % 9.3 % Actuarial gains and losses resulted from changes in actuarial assumptions (such as changes in the discount rate and revised mortality rates) and from differences between assumed and actual experience (such as differences between actual and expected return on plan assets). Gains and losses are amortized over the life expectancy of the plan participants for U.S. plans ( 34 years in 2017) and expected remaining service periods for most other plans to the extent they exceed 10% of the higher of the market-related value or the projected benefit obligation for each respective plan. The amortization of net actuarial loss and prior service credit is expected to be approximately $75 million in 2017. The periodic benefit cost or credit is included in cost of products sold, research and development, and marketing, selling and administrative expenses, except for curtailments, settlements and other special termination benefits which are included in other expenses. Postretirement Benefit Plans Comprehensive medical and group life benefits are provided for substantially all U.S. retirees electing to participate in comprehensive medical and group life plans and to a lesser extent certain benefits for non-U.S. employees. The medical plan is contributory. Contributions are adjusted periodically and vary by date of retirement. The life insurance plan is noncontributory. Plan assets consist principally of equity and fixed-income securities. Postretirement benefit plan obligations were $308 million and $355 million at December 31, 2016 and 2015 , respectively, and the fair value of plan assets were $331 million and $328 million at December 31, 2016 and 2015 , respectively. The weighted-average discount rate used to determine benefit obligations was 3.6% at December 31, 2016 and 2015 . The net periodic benefit credits were not material. Plan Assets The fair value of pension and postretirement plan assets by asset category at December 31, 2016 and 2015 was as follows: December 31, 2016 December 31, 2015 Dollars in Millions Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Plan Assets Equity securities $ 833 $ — $ — $ 833 $ 785 $ — $ — $ 785 Equity funds 138 1,230 — 1,368 452 748 — 1,200 Fixed income funds — 804 — 804 249 724 — 973 Corporate debt securities — 1,405 — 1,405 — 1,382 — 1,382 U.S. Treasury and agency securities — 536 — 536 — 517 — 517 Short-term investment funds — 90 — 90 — 103 — 103 Insurance contracts — — 112 112 — — 115 115 Cash and cash equivalents 81 — — 81 106 — — 106 Other — 93 — 93 4 14 — 18 Plan assets subject to leveling $ 1,052 $ 4,158 $ 112 $ 5,322 $ 1,596 $ 3,488 $ 115 $ 5,199 Plan assets measured at NAV as a practical expedient Equity funds $ 476 $ 495 Venture capital and limited partnerships 198 249 Other 166 72 Total plan assets measured at NAV as a practical expedient 840 816 Net plan assets $ 6,162 $ 6,015 The investment valuation policies per investment class are as follows: Level 1 inputs utilize unadjusted quoted prices in active markets accessible at the measurement date for identical assets or liabilities. The fair value hierarchy provides the highest priority to Level 1 inputs. These instruments include equity securities, equity funds and fixed income funds publicly traded on a national securities exchange, and cash and cash equivalents. Cash and cash equivalents are highly liquid investments with original maturities of three months or less at the time of purchase and are recognized at cost, which approximates fair value. Pending trade sales and purchases are included in cash and cash equivalents until final settlement. Level 2 inputs utilize observable prices for similar instruments, quoted prices for identical or similar instruments in non-active markets, and other observable inputs that can be corroborated by market data for substantially the full term of the assets or liabilities. Equity funds, fixed income funds, and short-term investment funds classified as Level 2 within the fair value hierarchy are valued at the net asset value of their shares held at year end, which represents fair value. Corporate debt securities and U.S. Treasury and agency securities classified as Level 2 within the fair value hierarchy are valued utilizing observable prices for similar instruments and quoted prices for identical or similar instruments in markets that are not active. Level 3 unobservable inputs are used when little or no market data is available. Insurance contracts are held by certain foreign pension plans and are carried at contract value, which approximates the estimated fair value and is based on the fair value of the underlying investment of the insurance company. In May 2015, the FASB issued amended guidance removing the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share (or its equivalent) as a practical expedient. The guidance is applied retrospectively in the table above. Venture capital and limited partnership investments are typically only redeemable through distributions upon liquidation of the underlying assets. There were no significant unfunded commitments for these investments and essentially all liquidations are expected to occur by 2019. Most of the remaining investments using the practical expedient are redeemable on a weekly or monthly basis. The following summarizes the activity for financial assets utilizing Level 3 fair value measurements: Dollars in Millions Insurance contracts Fair value at January 1, 2015 $ 119 Purchases, sales and settlements, net 7 Realized losses (11 ) Fair value at December 31, 2015 115 Purchases, sales and settlements, net (3 ) Fair value at December 31, 2016 $ 112 The investment strategy is to maximize return while maintaining an appropriate level of risk to provide sufficient liquidity for benefit obligations and plan expenses. A target asset allocation of 43% public equity ( 16% international, 14% global and 13% U.S.), 7% private equity and 50% long-duration fixed income is maintained for the U.S. pension plans. Investments are diversified within each of the three major asset categories. Approximately 90% of the U.S. pension plans equity investments are actively managed. BMS common stock represents less than 1% of the plan assets at December 31, 2016 and 2015 . Contributions and Estimated Future Benefit Payments Contributions to pension plans were $81 million in 2016 , $118 million in 2015 and $124 million in 2014 and are expected to be approximately $100 million in 2017 . Estimated annual future benefit payments (including lump sum payments) range from approximately $250 million to $400 million in each of the next five years, and aggregate $1.4 billion in the subsequent five year period. Savings Plans The principal defined contribution plan is the Bristol-Myers Squibb Savings and Investment Program. The contribution is based on employee contributions and the level of Company match. The expense attributed to defined contribution plans in the U.S. was approximately $190 million in 2016 , 2015 and 2014 . |
EMPLOYEE STOCK BENEFIT PLANS
EMPLOYEE STOCK BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | EMPLOYEE STOCK BENEFIT PLANS On May 1, 2012, the shareholders approved the 2012 Plan, which replaced the 2007 Stock Incentive Plan. The 2012 Plan provides for 109 million shares to be authorized for grants, plus any shares from outstanding awards under the 2007 Plan as of February 29, 2012 that expire, are forfeited, canceled, or withheld to satisfy tax withholding obligations. As of December 31, 2016 , 106 million shares were available for award. Shares are issued from treasury stock to satisfy our obligations under this Plan. Executive officers and key employees may be granted options to purchase common stock at no less than the market price on the date the option is granted. Options generally become exercisable ratably over four years and have a maximum term of ten years. The plan provides for the granting of stock appreciation rights whereby the grantee may surrender exercisable rights and receive common stock and/or cash measured by the excess of the market price of the common stock over the option exercise price. The Company has not granted any stock options or stock appreciation rights since 2009. Restricted stock units may be granted to key employees, subject to restrictions as to continuous employment. Generally, vesting occurs ratably over a four year period from grant date. A stock unit is a right to receive stock at the end of the specified vesting period but has no voting rights. Market share units are granted to executives. Vesting is conditioned upon continuous employment until the vesting date and a payout factor of at least 60% of the share price on the award date. The payout factor is the share price on vesting date divided by share price on award date, with a maximum of 200% . The share price used in the payout factor is calculated using an average of the closing prices on the grant or vest date, and the nine trading days immediately preceding the grant or vest date. Vesting occurs ratably over four years. Performance share units are granted to executives, have a three year cycle and are granted as a target number of units subject to adjustment. The number of shares issued when performance share units vest is determined based on the achievement of performance goals and based on the Company's three-year total shareholder return relative to a peer group of companies. Vesting is conditioned upon continuous employment and occurs on the third anniversary of the grant date. Stock-based compensation expense for awards ultimately expected to vest is recognized over the vesting period. Forfeitures are estimated based on historical experience at the time of grant and revised in subsequent periods if actual forfeitures differ from those estimates. Other information related to stock-based compensation benefits are as follows: Years Ended December 31, Dollars in Millions 2016 2015 2014 Restricted stock units $ 89 $ 82 $ 75 Market share units 37 36 34 Performance share units 79 117 104 Total stock-based compensation expense $ 205 $ 235 $ 213 Income tax benefit $ 69 $ 77 $ 71 Stock Options Restricted Stock Units Market Share Units Performance Share Units Number of Options Outstanding Weighted- Average Exercise Price of Shares Number of Nonvested Awards Weighted- Average Grant-Date Fair Value Number of Nonvested Awards Weighted- Average Grant-Date Fair Value Number of Nonvested Awards Weighted- Average Grant-Date Fair Value Shares in Thousands Balance at January 1, 2016 10,327 $ 21.62 4,499 $ 50.02 1,809 $ 53.10 4,078 $ 56.17 Granted — — 2,348 60.56 731 65.26 1,097 64.87 Released/Exercised (3,851 ) 22.60 (1,810 ) 45.00 (1,117 ) 44.33 (1,730 ) 54.02 Adjustments for actual payout — — — — 261 35.93 912 64.90 Forfeited/Canceled (73 ) 22.65 (446 ) 55.06 (157 ) 60.55 (242 ) 62.30 Balance at December 31, 2016 6,403 21.02 4,591 56.90 1,527 61.63 4,115 60.97 Vested or expected to vest 6,403 21.02 4,112 56.64 1,401 61.39 3,956 60.81 Restricted Market Performance Dollars in Millions Stock Units Share Units Share Units Unrecognized compensation cost $ 188 $ 42 $ 94 Expected weighted-average period in years of compensation cost to be recognized 2.7 2.8 1.6 Amounts in Millions, except per share data 2016 2015 2014 Weighted-average grant date fair value (per share): Restricted stock units $ 60.56 $ 61.18 $ 52.22 Market share units 65.26 67.03 55.44 Performance share units 64.87 65.07 55.17 Fair value of awards that vested: Restricted stock units $ 81 $ 77 $ 68 Market share units 50 47 49 Performance share units 93 75 90 Total intrinsic value of stock options exercised $ 158 $ 206 $ 199 The fair value of restricted stock units, market share units and performance share units approximates the closing trading price of BMS's common stock on the grant date after adjusting for the units not eligible for accrued dividends. In addition, the fair value of market share units and performance share units considers the probability of satisfying the payout factor and total shareholder return, respectively. The following table summarizes significant ranges of outstanding and exercisable options at December 31, 2016 : Options Outstanding and Exercisable Range of Exercise Prices Number Outstanding and Exercisable (in thousands) Weighted-Average Remaining Contractual Life (in years) Weighted-Average Exercise Price Per Share Aggregate Intrinsic Value (in millions) $1 - $20 3,052 2.15 $ 17.54 $ 125 $20 - $30 3,351 0.78 24.18 115 6,403 1.43 $ 21.02 $ 240 The aggregate intrinsic value in the preceding table represents the total pretax intrinsic value, based on the closing stock price of $58.44 on December 31, 2016 . |
LEGAL PROCEEDINGS AND CONTINGEN
LEGAL PROCEEDINGS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Matters 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 and a trial has been scheduled for August 2017. 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. On February 1, 2017, the EPO Board of Appeal upheld the Opposition Division's decision, and the ‘038 patent has been revoked. Orphan drug exclusivity and data exclusivity for Sprycel in the EU expired in November 2016. The EPO Board of Appeal's decision does not affect the validity of our other Sprycel patents within and outside Europe, including different patents that cover the monohydrate form of dasatinib and the use of dasatinib to treat chronic myelogenous leukemia (CML). Additionally, in February 2017, the EPO Board of Appeal reversed and remanded an invalidity decision on European Patent No. 1610780 and its claim to the use of dasatinib to treat CML, which the EPO's Opposition Division had revoked in October 2012. The Company intends to take appropriate legal actions to protect Sprycel . We may experience a decline in European revenues in the event that generic dasatinib product enters the market. Anti-PD-1 Antibody Patent Oppositions and Litigation On January 20, 2017, BMS and Ono announced the companies have signed a global patent license agreement with Merck to settle all patent-infringement litigation related to Merck’s PD-1 antibody Keytruda* (pembrolizumab). The agreement will result in the dismissal with prejudice of all patent litigation between the companies pertaining to Keytruda* . BMS and Ono had asserted in litigation that Merck’s sale of Keytruda* infringed the companies’ patents relating to the use of PD-1 antibodies to treat cancer in the U.S., Europe (UK, Netherlands, France, Germany, Ireland, Spain and Switzerland), Australia and Japan. As part of the agreement, Merck will make an initial payment of $625 million to BMS and Ono. Merck is also obligated to pay ongoing royalties on global sales of Keytruda* of 6.5% from January 1, 2017 through December 31, 2023, and 2.5% from January 1, 2024 through December 31, 2026. Under the agreement, the companies have also granted certain rights to each other under their respective patent portfolios pertaining to PD-1. The initial payment and royalties will be shared between BMS and Ono on a 75 / 25 percent allocation, respectively after adjusting for each parties incurred legal fees. 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 directed to methods of treating cancer using a PD-1 antibody. Specifically, Dana-Farber is seeking to add two scientists as inventors to these patents. PRICING, SALES AND PROMOTIONAL PRACTICES LITIGATION 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 5,300 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 approximately 2,000 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 30 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 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 130 cases filed in state and federal courts and several additional cases are pending in Canada. The Judicial Panel on Multidistrict Litigation has consolidated the federal court cases for pretrial purposes in the United States District Court for the Northern District of Florida. Eliquis The Company and Pfizer are co-defendants in product liability litigation related to Eliquis . Plaintiffs assert claims, including claims for wrongful death, as a result of bleeding they allege was caused by their use of Eliquis . There have been over 80 cases filed in state and federal courts in the United States and two cases filed in Canada. The Judicial Panel on Multidistrict Litigation has consolidated the federal court cases for pretrial purposes in the United States District Court for the Southern District of New York. SHAREHOLDER DERIVATIVE LITIGATION Since December 2015, three 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 two of the 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 this matter, and all but one of the states (New Mexico) that are members of the Coalition are participating in the settlement. Consent decrees were entered into with all participating states in December 2016. 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 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 $62 million at December 31, 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 $62 million includes the estimated costs for any additional probable loss associated with the previously disclosed North Brunswick Township High School Remediation Site. |
SELECTED QUARTERLY FINANCIAL DA
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2016 | |
Selected Quarterly Financial Information [Abstract] | |
Quarterly Financial Information [Text Block] | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) Dollars in Millions, except per share data First Quarter Second Quarter Third Quarter Fourth Quarter Year 2016 Total Revenues $ 4,391 $ 4,871 $ 4,922 $ 5,243 $ 19,427 Gross Margin 3,339 3,665 3,617 3,860 14,481 Net Earnings 1,206 1,188 1,215 898 4,507 Net Earnings Attributable to: Noncontrolling Interest 11 22 13 4 50 BMS 1,195 1,166 1,202 894 4,457 Earnings per Share - Basic (a) $ 0.72 $ 0.70 $ 0.72 $ 0.53 $ 2.67 Earnings per Share - Diluted (a) 0.71 0.69 0.72 0.53 2.65 Cash dividends declared per common share $ 0.38 $ 0.38 $ 0.38 $ 0.39 $ 1.53 Cash and cash equivalents $ 2,644 $ 2,934 $ 3,432 $ 4,237 $ 4,237 Marketable securities (b) 5,352 4,998 5,163 4,832 4,832 Total Assets 31,892 32,831 33,727 33,707 33,707 Long-term debt (c) 6,593 6,581 6,585 6,465 6,465 Equity 14,551 15,078 15,781 16,347 16,347 Dollars in Millions, except per share data First Quarter Second Quarter Third Quarter Fourth Quarter Year 2015 Total Revenues $ 4,041 $ 4,163 $ 4,069 $ 4,287 $ 16,560 Gross Margin 3,194 3,150 2,972 3,335 12,651 Net Earnings/(Loss) 1,199 (110 ) 730 (188 ) 1,631 Net Earnings/(Loss) Attributable to: Noncontrolling Interest 13 20 24 9 66 BMS 1,186 (130 ) 706 (197 ) 1,565 Earnings/(Loss) per Share - Basic (a) $ 0.71 $ (0.08 ) $ 0.42 $ (0.12 ) $ 0.94 Earnings/(Loss) per Share - Diluted (a) 0.71 (0.08 ) 0.42 (0.12 ) 0.93 Cash dividends declared per common share $ 0.37 $ 0.37 $ 0.37 $ 0.38 $ 1.49 Cash and cash equivalents $ 6,294 $ 4,199 $ 3,975 $ 2,385 $ 2,385 Marketable securities (b) 5,592 5,909 6,065 6,545 6,545 Total Assets 33,579 31,954 31,779 31,748 31,748 Long-term debt 7,127 6,615 6,632 6,550 6,550 Equity 15,689 15,291 15,273 14,424 14,424 (a) Earnings per share for the quarters may not add to the amounts for the year, as each period is computed on a discrete basis. (b) Marketable securities includes current and non-current assets. (c) Long-term debt includes the current portion. The following specified items affected the comparability of results in 2016 and 2015 : 2016 Dollars in Millions First Quarter Second Quarter Third Quarter Fourth Quarter Year Cost of products sold (a) $ 4 $ 4 $ 7 $ 6 $ 21 License and asset acquisition charges 125 139 45 130 439 IPRD impairments — — — 13 13 Accelerated depreciation and other 13 13 14 43 83 Research and development 138 152 59 186 535 Provision for restructuring 4 18 19 68 109 Litigation and other settlements 43 — (3 ) — 40 Divestiture gains (269 ) (277 ) (13 ) — (559 ) Royalties and licensing income — — — (10 ) (10 ) Pension charges 22 25 19 25 91 Intangible asset impairment 15 — — — 15 Other (income)/expense (185 ) (234 ) 22 83 (314 ) Increase/(decrease) to pretax income (43 ) (78 ) 88 275 242 Income tax on items above 83 76 (3 ) (105 ) 51 Increase/(decrease) to net earnings $ 40 $ (2 ) $ 85 $ 170 $ 293 (a) Specified items in cost of products sold are accelerated depreciation, asset impairment and other shutdown costs. 2015 Dollars in Millions First Quarter Second Quarter Third Quarter Fourth Quarter Year Cost of products sold (a) $ 34 $ 25 $ 15 $ 10 $ 84 Marketing, selling and administrative (b) 1 3 2 4 10 License and asset acquisition charges 162 869 94 554 1,679 IPRD impairments — — — 160 160 Accelerated depreciation and other — 2 15 27 44 Research and development 162 871 109 741 1,883 Provision for restructuring 12 28 10 65 115 Litigation and other settlements 14 1 — 143 158 Divestiture (gains)/losses (152 ) (8 ) (198 ) 171 (187 ) Pension charges 27 36 48 49 160 Intangible asset impairment 13 — — — 13 Written option adjustment (36 ) — (87 ) — (123 ) Loss on debt redemption — 180 — — 180 Other (income)/expense (122 ) 237 (227 ) 428 316 Increase/(decrease) to pretax income 75 1,136 (101 ) 1,183 2,293 Income tax on items above (68 ) (116 ) 43 (339 ) (480 ) Increase/(decrease) to net earnings $ 7 $ 1,020 $ (58 ) $ 844 $ 1,813 (a) Specified items in cost of products sold are accelerated depreciation, asset impairment and other shutdown costs. (b) Specified items in marketing, selling and administrative are process standardization implementation costs. |
ACCOUNTING POLICIES (Policies)
ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Basis of Consolidation The consolidated financial statements are prepared in conformity with U.S. GAAP, including the accounts of Bristol-Myers Squibb Company and all of its controlled majority-owned subsidiaries and certain variable interest entities. All intercompany balances and transactions are eliminated. Material subsequent events are evaluated and disclosed through the report issuance date. Refer to the Summary of Abbreviated Terms at the end of this 2016 Form 10-K for terms used throughout the document. Alliance and license arrangements are assessed to determine whether the terms provide economic or other control over the entity requiring consolidation of an entity. Entities controlled by means other than a majority voting interest are referred to as variable interest entities and are consolidated when BMS has both the power to direct the activities of the variable interest entity that most significantly impacts its economic performance and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the entity. |
Use of Estimates and Judgments, Policy [Policy Text Block] | Use of Estimates and Judgments The preparation of financial statements requires the use of management estimates, judgments and assumptions. The most significant assumptions are estimates 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; determining if an acquisition or divestiture is a business or an asset; and pension and postretirement benefits. Actual results may differ from estimated results. |
Reclassifications [Text Block] | 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 |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition Revenue is recognized when persuasive evidence of an arrangement exists, the sales price is fixed or determinable, collectability is reasonably assured and title and substantially all risks and rewards of ownership are transferred, generally at time of shipment (including the supply of commercial products to alliance partners when they are the principal in the end customer sale). However, certain revenue of non-U.S. businesses is recognized on the date of receipt by the customer. Alliance and other revenue related to Abilify* and Atripla* is not recognized until the products are sold to the end customer by the alliance partner. Royalties are recognized when the third-party sales are reliably measurable and collectability is reasonably assured. Refer to “—Note 3 . Alliances” for further detail regarding alliances. Revenue is reduced at the time of recognition for expected sales returns, discounts, rebates and sales allowances based on historical experience updated for changes in facts and circumstances including the impact of applicable healthcare legislation. Revenue is deferred when there is no historical experience with products in a similar therapeutic category or with similar operational characteristics, or until the right of return no longer exists or sufficient historical experience to estimate sales returns is developed. |
Income Tax, Policy [Policy Text Block] | Income Taxes The provision for income taxes includes income taxes paid or payable for the current year plus the change in deferred taxes during the year. Deferred taxes result from differences between the financial and tax basis of assets and liabilities and are adjusted for changes in tax rates and tax laws when changes are enacted. Valuation allowances are recognized to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. The assessment of whether or not a valuation allowance is required often requires significant judgment including the long-range forecast of future taxable income and the evaluation of tax planning initiatives. Adjustments to the deferred tax valuation allowances are made to earnings in the period when such assessments are made. Tax benefits are recognized from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefit recognized in the financial statements for a particular tax position is based on the largest benefit that is more likely than not to be realized upon settlement. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents Cash and cash equivalents include bank deposits, time deposits, commercial paper and money market funds. Cash equivalents consist of highly liquid investments with original maturities of three months or less at the time of purchase and are recognized at cost, which approximates fair value. |
Investment, Policy [Policy Text Block] | Marketable Securities and Investments in Other Companies Marketable securities are classified as “available-for-sale” on the date of purchase and reported at fair value. Fair value is determined based on observable market quotes or valuation models using assessments of counterparty credit worthiness, credit default risk or underlying security and overall capital market liquidity. Investments in 50% or less owned companies are accounted for using the equity method of accounting when the ability to exercise significant influence is maintained. The share of net income or losses of equity investments is included in other (income)/expense. Equity investments are reviewed for impairment by assessing if the decline in market value of the investment below the carrying value is other than temporary, which considers the intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in market value, the duration and extent that the market value has been less than cost and the investee's financial condition. |
Inventory, Policy [Policy Text Block] | Inventory Valuation Inventories are stated at the lower of average cost or market. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant and Equipment and Depreciation Expenditures for additions, renewals and improvements are capitalized at cost. Depreciation is computed on a straight-line method based on the estimated useful lives of the related assets ranging from 20 to 50 years for buildings and 3 to 20 years for machinery, equipment and fixtures. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Impairment of Long-Lived Assets Current facts or circumstances are periodically evaluated to determine if the carrying value of depreciable assets to be held and used may not be recoverable. If such circumstances exist, an estimate of undiscounted future cash flows generated by the long-lived asset, or appropriate grouping of assets, is compared to the carrying value to determine whether an impairment exists at its lowest level of identifiable cash flows. If an asset is determined to be impaired, the loss is measured based on the difference between the asset’s fair value and its carrying value. An estimate of the asset’s fair value is based on quoted market prices in active markets, if available. If quoted market prices are not available, the estimate of fair value is based on various valuation techniques using unobservable fair value inputs, such as a discounted value of estimated future cash flows. |
Internal Use Software, Policy [Policy Text Block] | Capitalized Software Eligible costs to obtain internal use software are capitalized and amortized over the estimated useful life of the software. |
Acquisitions Policy [Policy Text Block] | Acquisitions Businesses acquired are consolidated upon obtaining control. The fair value of assets acquired and liabilities assumed are recognized at the date of acquisition. Any excess of the purchase price over the estimated fair values of the net assets acquired is recognized as goodwill. Business acquisition costs are expensed when incurred. Contingent consideration from potential development, regulatory, approval and sales-based milestones and sales-based royalties are included in the purchase price for business combinations and are excluded for asset acquisitions. Amounts allocated to the lead investigational compounds for asset acquisitions are expensed at the date of acquisition. |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill, Acquired In-Process Research and Development and Other Intangible Assets The fair value of intangible assets is typically determined using the “income method” utilizing Level 3 fair value inputs. The market participant valuations assume a global view considering all potential jurisdictions and indications based on discounted after-tax cash flow projections, risk adjusted for estimated probability of technical and regulatory success (for IPRD). Finite-lived intangible assets, including licenses, developed technology rights and IPRD projects that reach commercialization are amortized on a straight-line basis over their estimated useful life. Estimated useful lives are determined considering the period the assets are expected to contribute to future cash flows. Goodwill is tested at least annually for impairment by assessing qualitative factors or performing a quantitative analysis in determining whether it is more likely than not that the fair value of net assets are below their carrying amounts. Examples of qualitative factors assessed in 2016 include our share price, financial performance compared to budgets, long-term financial plans, macroeconomic, industry and market conditions as well as the substantial excess of fair value over the carrying value of net assets from the annual impairment test performed in a prior year. Each relevant factor is assessed both individually and in the aggregate. IPRD is tested for impairment on an annual basis and more frequently if events occur or circumstances change that would indicate a potential reduction in the fair values of the assets below their carrying value. If the carrying value of IPRD is determined to exceed the fair value, an impairment loss is recognized for the difference. Finite-lived intangible assets are tested for impairment when facts or circumstances suggest that the carrying value of the asset may not be recoverable. If the carrying value exceeds the projected undiscounted pretax cash flows of the intangible asset, an impairment loss equal to the excess of the carrying value over the estimated fair value (discounted after-tax cash flows) is recognized. |
Costs Associated with Exit or Disposal Activities or Restructurings, Policy [Policy Text Block] | Restructuring Restructuring charges are recognized as a result of actions to streamline operations and rationalize manufacturing facilities. Estimating the impact of restructuring plans, including future termination benefits and other exit costs requires judgment. Actual results could vary from these estimates. |
Commitments and Contingencies, Policy [Policy Text Block] | Contingencies Loss contingencies from legal proceedings and claims may occur from a wide range of matters, including government investigations, shareholder lawsuits, product and environmental liability, contractual claims and tax matters. Accruals are recognized when it is probable that a liability will be incurred and the amount of loss can be reasonably estimated. Gain contingencies (including contingent proceeds related to the divestitures) are not recognized until realized. Legal fees are expensed as incurred. |
Shipping and Handling Cost, Policy [Policy Text Block] | Shipping and Handling Costs Shipping and handling costs are included in marketing, selling and administrative expenses and were $70 million in 2016 , $85 million in 2015 and $115 million in 2014 . |
Advertising Costs, Policy [Policy Text Block] | Advertising and Product Promotion Costs Advertising and product promotion costs are included in marketing, selling and administrative expenses and were $789 million in 2016 , $825 million in 2015 and $734 million in 2014 . Advertising and product promotion costs are expensed as incurred. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation Foreign subsidiary earnings are translated into U.S. dollars using average exchange rates. The net assets of foreign subsidiaries are translated into U.S. dollars using current exchange rates. The U.S. dollar effects that arise from translating the net assets of these subsidiaries at changing rates are recognized in OCI. |
Research and Development Expense, Policy [Policy Text Block] | Research and Development Research and development costs are expensed as incurred. Clinical study costs are accrued over the service periods specified in the contracts and adjusted as necessary based upon an ongoing review of the level of effort and costs actually incurred. Strategic alliances with third parties provide licensing rights to develop, manufacture, market and/or sell pharmaceutical products, the rights to which are owned by the other party. Research and development is recognized net of reimbursements in connection with alliance agreements. Upfront and contingent milestone payments for asset acquisitions of investigational compounds are also included in research and development expenses. |
Cash Flow, Policy [Policy Text Block] | Cash Flow Upfront and contingent milestone payments for licensing of investigational compounds are included in operating activities and asset or business acquisitions are included in investing activities. Divestiture proceeds are included in investing activities as well as royalties and other consideration received subsequent to the related sale of the asset or business. Other adjustments reflected in operating activities include divestiture gains and losses and related royalties, research and development asset acquisition charges, gains and losses on debt redemption and changes in the fair value of written option liabilities. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Standards In May 2014, the FASB issued a new accounting 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 and its subsequent amendments that were issued will replace most of the existing revenue recognition standards in U.S. GAAP when it becomes effective on January 1, 2018. A five step model will be utilized to achieve the core principle; (1) identify the customer contract, (2) identify the contract’s performance obligation, (3) determine the transaction price, (4) allocate the transaction price to the performance obligation and (5) recognize revenue when or as a performance obligation is satisfied. 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. Disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows from customer contracts will also be required. The Company’s assessment of the new standard’s impact is substantially complete based on our current contracts. We currently believe the timing of recognizing revenue for the typical net product sale to our customers will not significantly change. However, the new standard will no longer require the transaction price to be fixed or determinable and certain variable consideration might be recognized prior to the occurrence or resolution of the contingent event (subject to a revenue reversal constraint). As a result, certain revenue previously deferred under the current standard because the transaction price was not fixed or determinable (e.g. early access programs) will be accounted for as variable consideration and might be recognized earlier provided such terms are sufficient to reliably estimate the ultimate price expected to be realized. In addition, future royalties related to certain alliance arrangements (e.g. Sanofi and Japan Erbitux* arrangements disclosed in "—Note 3 . Alliances") will be estimated and recognized prior to the third party sale occurring provided it is not probable that the estimated amounts would be reversed in the future. However, the timing of royalties, sales-based milestones and other forms of contingent consideration resulting from the divestiture of businesses (e.g. the diabetes and North American Erbitux* businesses disclosed in "—Note 3 . Alliances") as well as royalties and sales-based royalties from licensing arrangements is not expected to change. The new standard’s guidance pertaining to the separation of licensing rights and related fee recognition is not expected to significantly change the timing of recognizing revenue in our existing alliance arrangements that are currently generating revenue. The Company currently anticipates to adopt the new standard on a modified retrospective basis with the cumulative effect of the change reflected in retained earnings as of January 1, 2018 and not restate prior periods. As a result, certain future royalties discussed above will be estimated and presented as a cumulative effect of an accounting change and excluded from the results of operations beginning in 2018 (other than subsequent significant revisions to the estimated amounts). Variable consideration pertaining to similar arrangements entered into subsequent to the adoption of the new standard will also need to be estimated and accounted for in a comparable manner but the initial estimate will be reflected in revenue and assessed each subsequent reporting period. No significant changes to business processes, systems and controls are currently expected to be required. 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 does not expect the amended standard to have a material impact on the Company’s results of operations. 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 future lease payments for leases with a term longer than 12 months. The guidance is effective beginning in 2019 with early adoption permitted on a modified retrospective approach. Although the Company’s assessment of the amended standard has not been completed, minimal impacts to the results of operations are expected. The undiscounted value of lease obligations is approximately $800 million at December 31, 2016, consisting primarily of facility leases accounted for as operating leases. The initial right-of-use asset and lease liability amount reflected upon adoption will be subject to several factors including the actual lease portfolio from the earliest date of initial application, selection of an appropriate discount rate and determining the individual fixed lease payments and terms including renewal periods reasonably certain to occur. 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 in 2017. The expected reduction of income tax expense for excess tax benefits in 2017 is not expected to be material. The Company will continue its current practice relating to accounting for forfeitures. The cash flow presentation changes discussed above will increase net cash provided by operating activities and net cash used in financing activities by $208 million in 2016 and $273 million in 2015. In June 2016, the 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 in 2020 with early adoption permitted in 2019 on a modified retrospective approach. The Company does not expect the amended standard to have a material impact on the Company’s results of operations. In October 2016, the FASB issued amended guidance on income tax accounting for intra-entity transfers of assets other than inventory. The amended guidance requires that the tax consequences of transfers of assets between members of a consolidated group be recognized in the period the transfer takes place (excluding inventory). The guidance is effective beginning in 2018 with early adoption permitted in the first quarter of 2017 on a modified retrospective approach. The Company will early adopt the amended standard beginning in the first quarter of 2017. As a result, prepaid receivables and deferred tax assets attributed to internal intellectual property transfers of approximately $1 billion will be reduced as a cumulative effect of an accounting change in retained earnings and no longer amortized as a component of income taxes ( $86 million per year). In addition, the tax impact of future internal transfers of intellectual property will be included in income tax expense when transferred and not amortized in subsequent periods. In January 2017, the FASB issued amended guidance that revises the definition of a business. The amendments provide an initial screen that when substantially all of the fair value of the gross assets acquired or disposed of is concentrated in a single identifiable asset or a group of similar identifiable assets, the assets would not represent a business. To be considered a business, there must be an input and a substantive process that together significantly contribute to the ability to create outputs. To be a business without outputs, there will need to be an organized workforce. The amendments also narrow the definition of the term outputs. The guidance is effective beginning in 2018 with early adoption permitted prospectively. The Company is assessing the potential impact of the amended standard. In January 2017, the FASB issued amended guidance that simplifies the recognition and measurement of a goodwill impairment loss by eliminating Step 2 of the quantitative impairment test. As a result, impairment charges will be required for the amount by which the reporting units carrying amount exceeds its fair value up to the amount of its allocated goodwill. The guidance is effective on a prospective basis in 2020, with early adoption permitted for interim or annual goodwill impairment tests performed after January 1, 2017. The Company does not expect the amended standard to have a material impact on the Company’s results of operations. |
BUSINESS SEGMENT INFORMATION (T
BUSINESS SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | Products are sold principally to wholesalers, and to a lesser extent, directly to distributors, retailers, hospitals, clinics, government agencies and pharmacies. Gross revenues to the three largest pharmaceutical wholesalers in the U.S. as a percentage of global gross revenues were as follows: 2016 2015 2014 McKesson Corporation 22 % 21 % 20 % AmerisourceBergen Corporation 18 % 16 % 17 % Cardinal Health, Inc. 14 % 12 % 12 % |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | Selected geographic area information was as follows: Revenues Property, Plant and Equipment Dollars in Millions 2016 2015 2014 2016 2015 United States $ 10,720 $ 8,188 $ 7,716 $ 3,865 $ 3,681 Europe 4,215 3,491 3,592 1,003 616 Rest of the World (a) 3,964 4,142 3,459 112 115 Other (b) 528 739 1,112 — — Total $ 19,427 $ 16,560 $ 15,879 $ 4,980 $ 4,412 (a) Includes Japan which represented 7% , 10% and 6% of total revenues in 2016 , 2015 and 2014 , respectively. (b) Other revenues include royalties and alliance-related revenues for products not sold by our regional commercial organizations. |
Schedule of Revenue from External Customers by Products and Services [Table Text Block] | The composition of total revenues was as follows: Year Ended December 31, Dollars in Millions 2016 2015 2014 Net product sales $ 17,702 $ 14,045 $ 11,660 Alliance revenues 1,629 2,408 3,828 Other revenues 96 107 391 Total Revenues $ 19,427 $ 16,560 $ 15,879 Product revenues were as follows: Year Ended December 31, Dollars in Millions 2016 2015 2014 Oncology Empliciti (elotuzumab) $ 150 $ 3 $ — Erbitux* (cetuximab) — 501 723 Opdivo (nivolumab) 3,774 942 6 Sprycel (dasatinib) 1,824 1,620 1,493 Yervoy (ipilimumab) 1,053 1,126 1,308 Cardiovascular Eliquis (apixaban) 3,343 1,860 774 Immunoscience Orencia (abatacept) 2,265 1,885 1,652 Virology Baraclude (entecavir) 1,192 1,312 1,441 Hepatitis C Franchise 1,578 1,603 256 Reyataz (atazanavir sulfate) Franchise 912 1,139 1,362 Sustiva (efavirenz) Franchise 1,065 1,252 1,444 Neuroscience Abilify* (aripiprazole) 128 746 2,020 Mature Products and All Other 2,143 2,571 3,400 Total Revenues $ 19,427 $ 16,560 $ 15,879 |
ALLIANCES(Tables)
ALLIANCES(Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Alliances Statement [Line Items] | |
Summarized Financial Information Reflected In Consolidated Financial Statements [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. Year Ended December 31, Dollars in Millions 2016 2015 2014 Revenues from alliances: Net product sales $ 5,568 $ 4,308 $ 3,531 Alliance revenues 1,629 2,408 3,828 Total Revenues $ 7,197 $ 6,716 $ 7,359 Payments to/(from) alliance partners: Cost of products sold $ 2,129 $ 1,655 $ 1,394 Marketing, selling and administrative (28 ) 15 134 Research and development 56 693 8 Other (income)/expense (1,009 ) (733 ) (1,076 ) Noncontrolling interest, pretax 16 51 38 Selected Alliance Balance Sheet Information: December 31, Dollars in Millions 2016 2015 Receivables – from alliance partners $ 903 $ 958 Accounts payable – to alliance partners 555 542 Deferred income from alliances (a) 1,194 1,459 |
Pfizer [Member] | |
Alliances Statement [Line Items] | |
Summarized Financial Information Reflected In Consolidated Financial Statements [Table Text Block] | Summarized financial information related to this alliance was as follows: Year Ended December 31, Dollars in Millions 2016 2015 2014 Revenues from Pfizer alliance: Net product sales $ 3,306 $ 1,849 $ 771 Alliance revenues 37 11 3 Total Revenues $ 3,343 $ 1,860 $ 774 Payments to/(from) Pfizer: Cost of products sold – Profit sharing $ 1,595 $ 895 $ 363 Other (income)/expense – Amortization of deferred income (55 ) (55 ) (50 ) Selected Alliance Cash Flow Information: Deferred income — 20 100 Selected Alliance Balance Sheet Information: December 31, Dollars in Millions 2016 2015 Deferred income $ 521 $ 576 |
Gilead [Member] | |
Alliances Statement [Line Items] | |
Summarized Financial Information Reflected In Consolidated Financial Statements [Table Text Block] | Summarized financial information related to this alliance was as follows: Year Ended December 31, Dollars in Millions 2016 2015 2014 Revenues from Gilead alliances: Alliance revenues $ 934 $ 1,096 $ 1,255 Equity in net loss of affiliates $ 12 $ 17 $ 39 Selected Alliance Balance Sheet Information: December 31, Dollars in Millions 2016 2015 Deferred income $ 634 $ 699 |
Otsuka [Member] | |
Alliances Statement [Line Items] | |
Schedule Of Percentage Of Net Sales Payable As Collaboration Fee [Table Text Block] | A fee is paid to Otsuka based on the following percentages of combined annual net sales of Sprycel and Ixempra* in the Oncology Territory (including post divestiture Ixempra* sales): % of Net Sales 2010 - 2012 2013 - 2020 $0 to $400 million 30% 65% $400 million to $600 million 5% 12% $600 million to $800 million 3% 3% $800 million to $1.0 billion 2% 2% In excess of $1.0 billion 1% 1% |
Summarized Financial Information Reflected In Consolidated Financial Statements [Table Text Block] | Summarized financial information related to this alliance was as follows: Year Ended December 31, Dollars in Millions 2016 2015 2014 Revenues from Otsuka alliances: Net product sales $ 1,670 $ 1,501 $ 1,493 Alliance revenues (a) 2 604 1,778 Total Revenues $ 1,672 $ 2,105 $ 3,271 Payments to/(from) Otsuka: Cost of products sold: Oncology fee $ 304 $ 299 $ 297 Royalties 10 30 90 Cost of product supply 30 35 67 (a) Includes the amortization of the extension payment as a reduction to alliance revenue of $21 million in 2015 and $66 million in 2014. |
Lilly [Member] | |
Alliances Statement [Line Items] | |
Summarized Financial Information Reflected In Consolidated Financial Statements [Table Text Block] | Summarized financial information related to this alliance was as follows: Year Ended December 31, Dollars in Millions 2016 2015 2014 Revenues from Lilly alliance: Net product sales $ — $ 492 $ 691 Alliance revenues — 9 32 Total revenues $ — $ 501 $ 723 Payments to/(from) Lilly: Cost of products sold: Distribution fees and royalties $ — $ 204 $ 287 Amortization of intangible asset — 11 37 Cost of product supply — 46 69 Other (income)/expense: Royalties (246 ) (70 ) — Divestiture loss — 171 — |
AstraZeneca [Member] | |
Alliances Statement [Line Items] | |
Summarized Financial Information Reflected In Consolidated Financial Statements [Table Text Block] | Summarized financial information related to the AstraZeneca alliances was as follows: Year Ended December 31, Dollars in Millions 2016 2015 2014 Revenues from AstraZeneca alliances: Net product sales $ — $ 14 $ 160 Alliance revenues 129 182 135 Total Revenues $ 129 $ 196 $ 295 Payments to/(from) AstraZeneca: Cost of products sold – Profit sharing $ — $ 1 $ 79 Cost reimbursements from AstraZeneca — — (33 ) Other (income)/expense: Amortization of deferred income (113 ) (105 ) (80 ) Royalties (227 ) (215 ) (192 ) Transitional services (7 ) (12 ) (90 ) Divestiture gain — (82 ) (536 ) Selected Alliance Cash Flow Information: Deferred income 19 34 315 Divestiture and other proceeds 216 374 3,495 Selected Alliance Balance Sheet Information: December 31, Dollars in Millions 2016 2015 Deferred income – Services not yet performed for AstraZeneca $ 38 $ 144 |
Schedule Of Royalty Rates Based On Net Sales [Table Text Block] | Royalty rates on net sales are as follows: 2014 2015 2016 2017 2018 2019 2020 - 2025 Onglyza* and Farxiga* Worldwide Net Sales up to $500 million 44 % 35 % 27 % 12 % 20 % 22 % 14-25% Onglyza* and Farxiga* Worldwide Net Sales over $500 million 3 % 7 % 9 % 12 % 20 % 22 % 14-25% Amylin products U.S. Net Sales — 2 % 2 % 5 % 10 % 12 % 5-12% |
Sanofi [Member] | |
Alliances Statement [Line Items] | |
Summarized Financial Information Reflected In Consolidated Financial Statements [Table Text Block] | Summarized financial information related to this alliance was as follows: Year Ended December 31, Dollars in Millions 2016 2015 2014 Revenues from Sanofi alliances: Net product sales $ 38 $ 110 $ 102 Alliance revenues 200 296 317 Total Revenues $ 238 $ 406 $ 419 Payments to/(from) Sanofi: Equity in net income of affiliates (95 ) (104 ) (146 ) Noncontrolling interest – pretax 16 51 38 Selected Alliance Cash Flow Information: Distributions (to)/from Sanofi – Noncontrolling interest (15 ) (45 ) (49 ) Distributions from Sanofi – Investment in affiliates 99 105 153 Selected Alliance Balance Sheet Information: December 31, Dollars in Millions 2016 2015 Investment in affiliates – territory covering Europe and Asia (a) $ 21 $ 25 Noncontrolling interest 45 44 (a) Included in alliance receivables. |
Sanofi [Member] | Territory Covering Europe and Asia [Member] | |
Alliances Statement [Line Items] | |
Equity Method Investments Disclosure [Table Text Block] | The following is summarized financial information for interests in the partnerships with Sanofi for the territory covering Europe and Asia, which are not consolidated but are accounted for using the equity method: Year Ended December 31, Dollars in Millions 2016 2015 2014 Net sales $ 235 $ 257 $ 360 Gross profit 195 213 297 Net income 192 209 292 |
Ono [Member] | |
Alliances Statement [Line Items] | |
Summarized Financial Information Reflected In Consolidated Financial Statements [Table Text Block] | Summarized financial information related to this alliance was as follows: Year Ended December 31, Dollars in Millions 2016 2015 2014 Revenues from Ono alliances: Net product sales $ 147 $ 113 $ 113 Alliance revenues 280 61 28 Total Revenues $ 427 $ 174 $ 141 |
AbbVie [Member] | |
Alliances Statement [Line Items] | |
Summarized Financial Information Reflected In Consolidated Financial Statements [Table Text Block] | Summarized financial information related to this alliance was as follows: Year Ended December 31, Dollars in Millions 2016 2015 2014 Revenues from AbbVie alliance: Net product sales $ 132 $ 3 $ — |
Reckitt Benckiser Group [Member] | |
Alliances Statement [Line Items] | |
Summarized Financial Information Reflected In Consolidated Financial Statements [Table Text Block] | Summarized financial information related to this alliance was as follows: Year Ended December 31, Dollars in Millions 2016 2015 2014 Revenues from Reckitt alliance: Alliance revenues $ 48 $ 140 $ 170 Other (income)/expense – Divestiture gain 277 — — Selected Alliance Cash Flow Information: Other changes in operating assets and liabilities $ — $ (129 ) $ 20 Divestiture and other proceeds 317 — — Selected Alliance Balance Sheet Information: December 31, Dollars in Millions 2016 2015 Deferred income $ — $ 36 |
The Medicines Company [Member] | |
Alliances Statement [Line Items] | |
Summarized Financial Information Reflected In Consolidated Financial Statements [Table Text Block] | Summarized financial information related to this alliance was as follows: Year Ended December 31, Dollars in Millions 2015 2014 Revenues from The Medicines Company alliance: Alliance revenues $ 8 $ 66 Other (income)/expense – Divestiture gain (59 ) — Selected Alliance Cash Flow Information: Divestiture and other proceeds $ 132 $ — |
Valeant [Member] | |
Alliances Statement [Line Items] | |
Summarized Financial Information Reflected In Consolidated Financial Statements [Table Text Block] | Summarized financial information related to this alliance was as follows: Year Ended December 31, Dollars in Millions 2015 2014 Revenues from Valeant alliance: Alliance revenues $ (1 ) $ 44 Other (income)/expense – Divestiture gain (88 ) — Selected Alliance Cash Flow Information: Other changes in operating assets and liabilities $ — $ 16 Divestiture and other proceeds 61 — |
ACQUISITIONS AND DIVESTITURES(T
ACQUISITIONS AND DIVESTITURES(Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Acquisitions and Divestitures [Abstract] | |
Schedule of Asset Acquisitions, by Acquisition [Table Text Block] | Dollars in Millions Year Upfront Payment R&D Expense Deferred Tax Assets (a) Contingent Consideration Cormorant 2016 $ 35 $ 35 $ — $ 485 Padlock 2016 150 139 11 453 $ 185 $ 174 $ 11 $ 938 Cardioxyl 2015 $ 200 $ 167 $ 33 $ 1,875 Flexus (b) 2015 814 800 14 450 $ 1,014 $ 967 $ 47 $ 2,325 iPierian 2014 $ 175 $ 148 $ 27 $ 554 (a) Relates to net operating loss and tax credit carryforwards (b) Includes $14 million of acquisition costs. |
Disposal Groups, Including Discontinued Operations [Table Text Block] | Divestitures Proceeds (a) Divestiture (Gains) / Losses Royalties Dollars in Millions 2016 2015 2014 2016 2015 2014 2016 2015 2014 Investigational HIV medicines $ 387 $ — $ — $ (272 ) $ — $ — $ — $ — $ — OTC products (Reckitt) 317 — — (277 ) — — — — — Diabetes 333 374 3,495 — (82 ) (536 ) (361 ) (215 ) (192 ) Erbitux* 252 9 — — 171 — (246 ) (70 ) — Recothrom* — 132 — — (59 ) — — — — Mature brand products (Valeant) — 61 — — (88 ) — — — — Ixempra* 13 113 — — (88 ) — (11 ) (8 ) — Other 15 8 70 (15 ) (48 ) (28 ) — — — $ 1,317 $ 697 $ 3,565 $ (564 ) $ (194 ) $ (564 ) $ (618 ) $ (293 ) $ (192 ) (a) Includes royalties received subsequent to the related sale of the asset or business. |
OTHER (INCOME)_EXPENSE (Tables)
OTHER (INCOME)/EXPENSE (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Nonoperating Income (Expense) [Abstract] | |
Schedule Of Other Income Expense [Table Text Block] | Other (income)/expense includes: Year Ended December 31, Dollars in Millions 2016 2015 2014 Interest expense $ 167 $ 184 $ 203 Investment income (105 ) (101 ) (101 ) Provision for restructuring 109 118 163 Litigation and other settlements 47 159 23 Equity in net income of affiliates (77 ) (83 ) (107 ) Divestiture gains (576 ) (196 ) (564 ) Royalties and licensing income (719 ) (383 ) (283 ) Transition and other service fees (238 ) (122 ) (170 ) Pension charges 91 160 877 Intangible asset impairment 15 13 29 Equity investment impairment 45 — — Written option adjustment — (123 ) 32 Loss on debt redemption — 180 45 Other (44 ) 7 63 Other (income)/expense $ (1,285 ) $ (187 ) $ 210 |
RESTRUCTURING (Tables)
RESTRUCTURING (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring Charges [Abstract] | |
Schedule of Restructuring and Related Costs [Table Text Block] | The following tables summarize the charges and activity related to the restructuring actions: Year Ended December 31, Dollars in Millions 2016 2015 2014 Employee termination costs $ 97 $ 110 $ 157 Other termination costs 12 8 6 Provision for restructuring 109 118 163 Accelerated depreciation 72 104 138 Asset impairments 13 1 13 Other shutdown costs 19 10 — Total charges $ 213 $ 233 $ 314 Year Ended December 31, Dollars in Millions 2016 2015 2014 Cost of products sold $ 21 $ 84 $ 151 Research and development 83 31 — Other (income)/expense 109 118 163 Total charges $ 213 $ 233 $ 314 |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | Year Ended December 31, Dollars in Millions 2016 2015 2014 Liability at January 1 $ 125 $ 156 $ 102 Charges 116 133 155 Change in estimates (7 ) (15 ) 8 Provision for restructuring 109 118 163 Foreign currency translation — (15 ) (2 ) Spending (120 ) (134 ) (107 ) Liability at December 31 $ 114 $ 125 $ 156 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes [Table Text Block] | The provision/(benefit) for income taxes consisted of: Year Ended December 31, Dollars in Millions 2016 2015 2014 Current: U.S. $ 1,144 $ 337 $ 334 Non-U.S. 468 456 560 Total Current 1,612 793 894 Deferred: U.S. (101 ) (394 ) (403 ) Non-U.S. (103 ) 47 (139 ) Total Deferred (204 ) (347 ) (542 ) Total Provision $ 1,408 $ 446 $ 352 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The reconciliation of the effective tax/(benefit) rate to the U.S. statutory Federal income tax rate was: % of Earnings Before Income Taxes Dollars in Millions 2016 2015 2014 Earnings/(Loss) before income taxes: U.S. $ 3,100 $ (1,329 ) $ (349 ) Non-U.S. 2,815 3,406 2,730 Total $ 5,915 $ 2,077 $ 2,381 U.S. statutory rate 2,070 35.0 % 727 35.0 % 833 35.0 % Foreign tax effect of certain operations in Ireland, Puerto Rico and Switzerland (442 ) (7.5 )% (535 ) (25.8 )% (509 ) (21.4 )% U.S. tax effect of capital losses — — — — (361 ) (15.2 )% U.S. Federal valuation allowance release (29 ) (0.5 )% (84 ) (4.0 )% — — U.S. Federal, state and foreign contingent tax matters 87 1.5 % 56 2.7 % 228 9.6 % U.S. Federal research based credits (144 ) (2.4 )% (132 ) (6.4 )% (131 ) (5.4 )% Goodwill allocated to divestitures 34 0.6 % 25 1.2 % 210 8.8 % U.S. Branded Prescription Drug Fee 52 0.9 % 44 2.1 % 84 3.5 % R&D charges 100 1.7 % 369 17.8 % 52 2.2 % Puerto Rico excise tax (131 ) (2.2 )% (55 ) (2.7 )% (28 ) (1.2 )% Domestic manufacturing deduction (122 ) (2.1 )% (17 ) (0.8 )% — — State and local taxes (net of valuation allowance) 23 0.4 % 16 0.8 % 20 0.8 % Foreign and other (90 ) (1.6 )% 32 1.6 % (46 ) (1.9 )% $ 1,408 23.8 % $ 446 21.5 % $ 352 14.8 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The components of current and non-current deferred income tax assets/(liabilities) were as follows: December 31, Dollars in Millions 2016 2015 Deferred tax assets Foreign net operating loss carryforwards $ 2,945 $ 3,090 U.S. capital loss carryforwards 4 39 State net operating loss and credit carryforwards 114 324 U.S. Federal net operating loss and credit carryforwards 156 173 Deferred income 764 1,009 Milestone payments and license fees 534 560 Pension and postretirement benefits 358 462 Intercompany profit and other inventory items 1,241 607 Other foreign deferred tax assets 188 172 Share-based compensation 114 122 Legal and other settlements 5 63 Repatriation of foreign earnings 12 (1 ) Internal transfer of intellectual property 629 635 Other 287 337 Total deferred tax assets 7,351 7,592 Valuation allowance (3,078 ) (3,534 ) Deferred tax assets net of valuation allowance 4,273 4,058 Deferred tax liabilities Depreciation (125 ) (105 ) Acquired intangible assets (344 ) (338 ) Goodwill and other (855 ) (802 ) Total deferred tax liabilities (1,324 ) (1,245 ) Deferred tax assets, net $ 2,949 $ 2,813 Recognized as: Deferred income taxes – non-current $ 2,996 $ 2,844 Income taxes payable – non-current (47 ) (31 ) Total $ 2,949 $ 2,813 |
Summary of Valuation Allowance [Table Text Block] | Changes in the valuation allowance were as follows: Year Ended December 31, Dollars in Millions 2016 2015 2014 Balance at beginning of year $ 3,534 $ 4,259 $ 4,623 Provision 39 71 140 Utilization (355 ) (436 ) (109 ) Foreign currency translation (142 ) (366 ) (395 ) Acquisitions 2 6 — Balance at end of year $ 3,078 $ 3,534 $ 4,259 |
Summary of Income Tax Contingencies [Table Text Block] | A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows: Year Ended December 31, Dollars in Millions 2016 2015 2014 Balance at beginning of year $ 944 $ 934 $ 756 Gross additions to tax positions related to current year 49 52 106 Gross additions to tax positions related to prior years 49 56 218 Gross additions to tax positions assumed in acquisitions 1 1 — Gross reductions to tax positions related to prior years (22 ) (34 ) (57 ) Settlements (13 ) (46 ) (65 ) Reductions to tax positions related to lapse of statute (4 ) (9 ) (12 ) Cumulative translation adjustment (9 ) (10 ) (12 ) Balance at end of year $ 995 $ 944 $ 934 |
Summary of Income Tax Examinations [Table Text Block] | Additional information regarding unrecognized tax benefits is as follows: Year Ended December 31, Dollars in Millions 2016 2015 2014 Unrecognized tax benefits that if recognized would impact the effective tax rate $ 854 $ 671 $ 668 Accrued interest 112 93 96 Accrued penalties 17 16 17 Interest expense 22 2 27 Penalty expense/(benefit) 4 1 (7 ) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Year Ended December 31, Amounts in Millions, Except Per Share Data 2016 2015 2014 Net Earnings Attributable to BMS used for Basic and Diluted EPS Calculation $ 4,457 $ 1,565 $ 2,004 Weighted-average common shares outstanding - basic 1,671 1,667 1,657 Contingently convertible debt common stock equivalents — — 1 Incremental shares attributable to share-based compensation plans 9 12 12 Weighted-average common shares outstanding - diluted 1,680 1,679 1,670 Earnings per share - basic $ 2.67 $ 0.94 $ 1.21 Earnings per share - diluted $ 2.65 $ 0.93 $ 1.20 |
FINANCIAL INSTRUMENTS AND FAI34
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Financial Instruments [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: December 31, 2016 December 31, 2015 Dollars in Millions Level 1 Level 2 Level 1 Level 2 Cash and cash equivalents - Money market and other securities $ — $ 3,532 $ — $ 1,825 Marketable securities: Certificates of deposit — 27 — 804 Commercial paper — 750 — — Corporate debt securities — 3,947 — 5,638 Equity funds — 101 — 92 Fixed income funds — 7 — 11 Derivative assets — 75 — 96 Equity investments 24 — 60 — Derivative liabilities — (30 ) — (18 ) |
Available-for-sale Securities [Table Text Block] | The following table summarizes available-for-sale securities: Dollars in Millions Amortized Gross Gross Fair Value December 31, 2016 Certificates of deposit $ 27 $ — $ — $ 27 Commercial paper 750 — — 750 Corporate debt securities 3,945 10 (8 ) 3,947 Equity investments 31 — (7 ) 24 Total $ 4,753 $ 10 $ (15 ) $ 4,748 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 December 31, December 31, Current marketable securities (a) $ 2,113 $ 1,885 Non-current marketable securities (b) 2,719 4,660 Other assets 24 60 Total $ 4,856 $ 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 $108 million at December 31, 2016 and $103 million at December 31, 2015 and were included in current marketable securities. Changes in fair value were not significant. (b) All non-current marketable securities mature within five years as of December 31, 2016 and 2015 . |
Schedule of Derivatives and Fair Value [Table Text Block] | The following summarizes the fair value of outstanding derivatives: December 31, 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 Prepaid expenses and other $ 250 $ — $ — $ — Interest rate swap contracts Other assets 500 1 1,100 31 Interest rate swap contracts Accrued liabilities 500 — — — Interest rate swap contracts Pension and other liabilities 255 (3 ) 650 (1 ) Forward starting interest rate swap contracts Prepaid expenses and other 500 8 — — Forward starting interest rate swap contracts Other assets — — 500 15 Forward starting interest rate swap contracts Accrued liabilities 250 (11 ) — — Forward starting interest rate swap contracts Pension and other liabilities — — 250 (7 ) Foreign currency forward contracts Prepaid expenses and other 967 66 1,016 50 Foreign currency forward contracts Accrued liabilities 198 (9 ) 342 (5 ) Derivatives not designated as hedging instruments: Foreign currency forward contracts Prepaid expenses and other 106 — — — Foreign currency forward contracts Accrued liabilities 291 (4 ) 445 (5 ) Foreign currency forward contracts Pension and other liabilities 69 (3 ) — — |
Schedule of Short-term Debt [Table Text Block] | Short-term borrowings and the current portion of long-term debt includes: December 31, Dollars in Millions 2016 2015 Bank drafts and short-term borrowings $ 243 $ 139 Current portion of long-term debt 749 — Total $ 992 $ 139 |
Schedule of Long-term Debt Instruments [Table Text Block] | Long-term debt and the current portion of long-term debt includes: December 31, Dollars in Millions 2016 2015 Principal Value: 0.875% Notes due 2017 $ 750 $ 750 1.750% Notes due 2019 500 500 2.000% Notes due 2022 750 750 7.150% Notes due 2023 302 302 3.250% Notes due 2023 500 500 1.000% Euro Notes due 2025 601 630 6.800% Notes due 2026 256 256 1.750% Euro Notes due 2035 601 630 5.875% Notes due 2036 404 404 6.125% Notes due 2038 278 278 3.250% Notes due 2042 500 500 4.500% Notes due 2044 500 500 6.880% Notes due 2097 260 260 0% - 5.75% Other - maturing 2017 - 2030 59 79 Subtotal 6,261 6,339 Adjustments to Principal Value: Fair value of interest rate swap contracts (2 ) 30 Unamortized basis adjustment from swap terminations 287 272 Unamortized bond discounts and issuance costs (81 ) (91 ) Total $ 6,465 $ 6,550 Current portion of long-term debt $ 749 $ — Long-term debt 5,716 6,550 |
Schedule of Note Issuances [Table Text Block] | The following table summarizes the issuance of long-term debt obligations in 2015 (none in 2016 and 2014): 2015 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 ) |
Schedule of Debt Repurchases [Table Text Block] | The following summarizes the debt redemption activity for 2015 and 2014 (none in 2016): Dollars in Millions 2015 2014 Principal amount $ 1,624 $ 582 Carrying value 1,795 633 Debt redemption price 1,957 676 Notional amount of interest rate swap contracts terminated 735 500 Interest rate swap termination payments 11 4 Loss on debt redemption (a) 180 45 (a) Including acceleration of debt issuance costs, loss on interest rate lock contract and other related fees. |
RECEIVABLES (Tables)
RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounts Receivable, Net [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | December 31, Dollars in Millions 2016 2015 Trade receivables $ 3,948 $ 3,070 Less charge-backs and cash discounts (126 ) (97 ) Less bad debt allowances (48 ) (25 ) Net trade receivables 3,774 2,948 Alliance receivables 903 958 Prepaid and refundable income taxes 627 182 Other 239 211 Receivables $ 5,543 $ 4,299 |
Receivables Allowance [Table Text Block] | Changes to the allowances for bad debt, charge-backs and cash discounts were as follows: Year Ended December 31, Dollars in Millions 2016 2015 2014 Balance at beginning of year $ 122 $ 93 $ 89 Provision 1,613 1,059 773 Utilization (1,561 ) (1,030 ) (769 ) Balance at end of year $ 174 $ 122 $ 93 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventory, Net [Abstract] | |
Schedule of Inventories [Table Text Block] | December 31, Dollars in Millions 2016 2015 Finished goods $ 310 $ 381 Work in process 988 868 Raw and packaging materials 264 199 Inventories $ 1,562 $ 1,448 Inventories $ 1,241 $ 1,221 Other assets 321 227 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | December 31, Dollars in Millions 2016 2015 Land $ 107 $ 107 Buildings 4,930 4,515 Machinery, equipment and fixtures 3,287 3,347 Construction in progress 849 662 Gross property, plant and equipment 9,173 8,631 Less accumulated depreciation (4,193 ) (4,219 ) Property, plant and equipment $ 4,980 $ 4,412 |
GOODWILL AND OTHER INTANGIBLE38
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule Of Intangible Assets By Major Class [Table Text Block] | December 31, Dollars in Millions Estimated Useful Lives 2016 2015 Goodwill $ 6,875 $ 6,881 Other intangible assets: Licenses 5 – 15 years $ 564 $ 574 Developed technology rights 9 – 15 years 2,357 2,357 Capitalized software 3 – 10 years 1,441 1,302 IPRD 107 120 Gross other intangible assets 4,469 4,353 Less accumulated amortization (3,084 ) (2,934 ) Total other intangible assets $ 1,385 $ 1,419 |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of Accrued Liabilities [Table Text Block] | December 31, Dollars in Millions 2016 2015 Accrued rebates and returns $ 1,680 $ 1,324 Employee compensation and benefits 818 904 Accrued research and development 718 553 Dividends payable 660 655 Royalties 246 161 Branded Prescription Drug Fee 234 112 Restructuring 90 89 Pension and postretirement benefits 44 47 Litigation and other settlements 43 189 Other 738 704 Total accrued liabilities $ 5,271 $ 4,738 |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Schedule of Stockholders Equity [Table Text Block] | Common Stock Capital in Excess of Par Value of Stock Accumulated Other Comprehensive Loss Retained Earnings Treasury Stock Noncontrolling Interest Dollars and Shares in Millions Shares Par Value Shares Cost Balance at January 1, 2014 2,208 $ 221 $ 1,922 $ (2,141 ) $ 32,952 559 $ (17,800 ) $ 82 Net earnings — — — — 2,004 — — 39 Other comprehensive loss — — — (284 ) — — — — Cash dividends — — — — (2,415 ) — — — Stock compensation — — (393 ) — — (11 ) 755 — Debt conversion — — (22 ) — — (1 ) 53 — Variable interest entity — — — — — — — 59 Distributions — — — — — — — (49 ) Balance at December 31, 2014 2,208 221 1,507 (2,425 ) 32,541 547 (16,992 ) 131 Net earnings — — — — 1,565 — — 84 Other comprehensive loss — — — (43 ) — — — — Cash dividends — — — — (2,493 ) — — — Stock compensation — — (48 ) — — (8 ) 431 — Debt conversion — — — — — — 2 — Distributions — — — — — — — (57 ) Balance at December 31, 2015 2,208 221 1,459 (2,468 ) 31,613 539 (16,559 ) 158 Net earnings — — — — 4,457 — — 50 Other comprehensive loss — — — (35 ) — — — — Cash dividends — — — — (2,557 ) — — — Stock repurchase program — — — — — 4 (231 ) — Stock compensation — — 266 — — (7 ) 11 — Distributions — — — — — — — (38 ) Balance at December 31, 2016 2,208 $ 221 $ 1,725 $ (2,503 ) $ 33,513 536 $ (16,779 ) $ 170 |
Schedule of Comprehensive Income (Loss) [Table Text Block] | The components of other comprehensive income/(loss) were as follows: Year Ended December 31, 2016 2015 2014 Dollars in Millions Pretax Tax After Tax Pretax Tax After Tax Pretax Tax After Tax Derivatives qualifying as cash flow hedges (a) Unrealized gains/(losses) $ (5 ) $ — $ (5 ) $ 59 $ (22 ) $ 37 $ 139 $ (45 ) $ 94 Reclassified to net earnings 12 (3 ) 9 (130 ) 42 (88 ) (41 ) 16 (25 ) Derivatives qualifying as cash flow hedges 7 (3 ) 4 (71 ) 20 (51 ) 98 (29 ) 69 Pension and other postretirement benefits: Actuarial losses (126 ) (3 ) (129 ) (88 ) 27 (61 ) (1,414 ) 464 (950 ) Amortization (b) 78 (25 ) 53 85 (28 ) 57 104 (37 ) 67 Settlements and curtailments (c) 91 (32 ) 59 160 (55 ) 105 867 (308 ) 559 Pension and other postretirement benefits 43 (60 ) (17 ) 157 (56 ) 101 (443 ) 119 (324 ) Available-for-sale securities: Unrealized gains/(losses) (12 ) (1 ) (13 ) (71 ) 14 (57 ) 10 (6 ) 4 Realized (gains)/losses (c) 29 — 29 3 — 3 (1 ) — (1 ) Available-for-sale securities 17 (1 ) 16 (68 ) 14 (54 ) 9 (6 ) 3 Foreign currency translation (33 ) (5 ) (38 ) (17 ) (22 ) (39 ) (8 ) (24 ) (32 ) Total Other Comprehensive Income/(Loss) $ 34 $ (69 ) $ (35 ) $ 1 $ (44 ) $ (43 ) $ (344 ) $ 60 $ (284 ) (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: December 31, Dollars in Millions 2016 2015 Derivatives qualifying as cash flow hedges $ 38 $ 34 Pension and other postretirement benefits (2,097 ) (2,080 ) Available-for-sale securities (7 ) (23 ) Foreign currency translation (437 ) (399 ) Accumulated other comprehensive loss $ (2,503 ) $ (2,468 ) |
PENSION AND POSTRETIREMENT BE41
PENSION AND POSTRETIREMENT BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule Of Net Benefit Costs [Table Text Block] | The net periodic benefit cost/(credit) of defined benefit pension plans includes: Dollars in Millions 2016 2015 2014 Service cost — benefits earned during the year $ 24 $ 25 $ 34 Interest cost on projected benefit obligation 192 242 305 Expected return on plan assets (418 ) (405 ) (508 ) Amortization of prior service credits (3 ) (3 ) (3 ) Amortization of net actuarial loss 84 91 110 Curtailments — (1 ) 1 Settlements 91 161 866 Special termination benefits 1 — 14 Net periodic benefit cost/(credit) $ (29 ) $ 110 $ 819 |
Schedule Of Defined Benefit Obligations And Assets [Table Text Block] | Changes in defined benefit pension plan obligations, assets, funded status and amounts recognized in the consolidated balance sheets were as follows: Dollars in Millions 2016 2015 Benefit obligations at beginning of year $ 6,418 $ 7,068 Service cost—benefits earned during the year 24 25 Interest cost 192 242 Settlements (173 ) (336 ) Actuarial (gains)/losses 253 (321 ) Benefits paid (109 ) (105 ) Foreign currency and other (165 ) (155 ) Benefit obligations at end of year $ 6,440 $ 6,418 Fair value of plan assets at beginning of year $ 5,687 $ 6,148 Actual return on plan assets 513 (5 ) Employer contributions 81 118 Settlements (173 ) (336 ) Benefits paid (109 ) (105 ) Foreign currency and other (168 ) (133 ) Fair value of plan assets at end of year $ 5,831 $ 5,687 Funded status $ (609 ) $ (731 ) Assets/(Liabilities) recognized: Other assets $ 26 $ 71 Accrued liabilities (35 ) (37 ) Pension and other liabilities (600 ) (765 ) Funded status $ (609 ) $ (731 ) Recognized in accumulated other comprehensive loss: Net actuarial losses $ 3,123 $ 3,140 Prior service credit (39 ) (39 ) Total $ 3,084 $ 3,101 |
Schedule Of Accumulated And Projected Benefit Obligation In Excess Of Fair Value Of Plan Assets [Table Text Block] | Additional information related to pension plans was as follows: Dollars in Millions 2016 2015 Pension plans with projected benefit obligations in excess of plan assets: Projected benefit obligation $ 6,195 $ 5,310 Fair value of plan assets 5,559 4,508 Pension plans with accumulated benefit obligations in excess of plan assets : Accumulated benefit obligation $ 5,978 $ 5,156 Fair value of plan assets 5,380 4,386 |
Schedule Of Defined Benefit Actuarial Assumptions Benefit Obligations [Table Text Block] | Weighted-average assumptions used to determine defined benefit pension plan obligations at December 31 were as follows: 2016 2015 Discount rate 3.5 % 3.8 % Rate of compensation increase 0.5 % 0.5 % |
Schedule Of Defined Benefit Actuarial Assumptions Net Periodic Benefit Cost [Table Text Block] | Weighted-average actuarial assumptions used to determine defined benefit pension plan net periodic benefit (credit)/cost for the years ended December 31 were as follows: 2016 2015 2014 Discount rate 3.8 % 3.6 % 4.2 % Expected long-term return on plan assets 7.2 % 7.2 % 7.6 % Rate of compensation increase 0.5 % 0.8 % 2.3 % |
Schedule Of Defined Benefit Historical Long Term Actual Returns [Table Text Block] | Historical long-term actual annualized returns for U.S. pension plans were as follows: 2016 2015 2014 10 years 6.1 % 6.7 % 7.9 % 15 years 7.1 % 6.0 % 6.4 % 20 years 7.7 % 8.1 % 9.3 % |
Schedule Of Allocation Of Plan Assets [Table Text Block] | The fair value of pension and postretirement plan assets by asset category at December 31, 2016 and 2015 was as follows: December 31, 2016 December 31, 2015 Dollars in Millions Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Plan Assets Equity securities $ 833 $ — $ — $ 833 $ 785 $ — $ — $ 785 Equity funds 138 1,230 — 1,368 452 748 — 1,200 Fixed income funds — 804 — 804 249 724 — 973 Corporate debt securities — 1,405 — 1,405 — 1,382 — 1,382 U.S. Treasury and agency securities — 536 — 536 — 517 — 517 Short-term investment funds — 90 — 90 — 103 — 103 Insurance contracts — — 112 112 — — 115 115 Cash and cash equivalents 81 — — 81 106 — — 106 Other — 93 — 93 4 14 — 18 Plan assets subject to leveling $ 1,052 $ 4,158 $ 112 $ 5,322 $ 1,596 $ 3,488 $ 115 $ 5,199 Plan assets measured at NAV as a practical expedient Equity funds $ 476 $ 495 Venture capital and limited partnerships 198 249 Other 166 72 Total plan assets measured at NAV as a practical expedient 840 816 Net plan assets $ 6,162 $ 6,015 |
Schedule of Level Three Defined Benefit Plan Assets Roll Forward [Table Text Block] | The following summarizes the activity for financial assets utilizing Level 3 fair value measurements: Dollars in Millions Insurance contracts Fair value at January 1, 2015 $ 119 Purchases, sales and settlements, net 7 Realized losses (11 ) Fair value at December 31, 2015 115 Purchases, sales and settlements, net (3 ) Fair value at December 31, 2016 $ 112 |
EMPLOYEE STOCK BENEFIT PLANS (T
EMPLOYEE STOCK BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block] | Other information related to stock-based compensation benefits are as follows: Years Ended December 31, Dollars in Millions 2016 2015 2014 Restricted stock units $ 89 $ 82 $ 75 Market share units 37 36 34 Performance share units 79 117 104 Total stock-based compensation expense $ 205 $ 235 $ 213 Income tax benefit $ 69 $ 77 $ 71 |
Schedule of Share-based Compensation, Activity [Table Text Block] | Stock Options Restricted Stock Units Market Share Units Performance Share Units Number of Options Outstanding Weighted- Average Exercise Price of Shares Number of Nonvested Awards Weighted- Average Grant-Date Fair Value Number of Nonvested Awards Weighted- Average Grant-Date Fair Value Number of Nonvested Awards Weighted- Average Grant-Date Fair Value Shares in Thousands Balance at January 1, 2016 10,327 $ 21.62 4,499 $ 50.02 1,809 $ 53.10 4,078 $ 56.17 Granted — — 2,348 60.56 731 65.26 1,097 64.87 Released/Exercised (3,851 ) 22.60 (1,810 ) 45.00 (1,117 ) 44.33 (1,730 ) 54.02 Adjustments for actual payout — — — — 261 35.93 912 64.90 Forfeited/Canceled (73 ) 22.65 (446 ) 55.06 (157 ) 60.55 (242 ) 62.30 Balance at December 31, 2016 6,403 21.02 4,591 56.90 1,527 61.63 4,115 60.97 Vested or expected to vest 6,403 21.02 4,112 56.64 1,401 61.39 3,956 60.81 |
Schedule of Unrecognized Compensation Cost, Nonvested Awards [Table Text Block] | Restricted Market Performance Dollars in Millions Stock Units Share Units Share Units Unrecognized compensation cost $ 188 $ 42 $ 94 Expected weighted-average period in years of compensation cost to be recognized 2.7 2.8 1.6 |
Schedule Of Share Based Compensation Additional Information [Table Text Block] | Amounts in Millions, except per share data 2016 2015 2014 Weighted-average grant date fair value (per share): Restricted stock units $ 60.56 $ 61.18 $ 52.22 Market share units 65.26 67.03 55.44 Performance share units 64.87 65.07 55.17 Fair value of awards that vested: Restricted stock units $ 81 $ 77 $ 68 Market share units 50 47 49 Performance share units 93 75 90 Total intrinsic value of stock options exercised $ 158 $ 206 $ 199 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Table Text Block] | The following table summarizes significant ranges of outstanding and exercisable options at December 31, 2016 : Options Outstanding and Exercisable Range of Exercise Prices Number Outstanding and Exercisable (in thousands) Weighted-Average Remaining Contractual Life (in years) Weighted-Average Exercise Price Per Share Aggregate Intrinsic Value (in millions) $1 - $20 3,052 2.15 $ 17.54 $ 125 $20 - $30 3,351 0.78 24.18 115 6,403 1.43 $ 21.02 $ 240 |
SELECTED QUARTERLY FINANCIAL 43
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Selected Quarterly Financial Information [Abstract] | |
Schedule of Quarterly Financial Information [Table Text Block] | Dollars in Millions, except per share data First Quarter Second Quarter Third Quarter Fourth Quarter Year 2016 Total Revenues $ 4,391 $ 4,871 $ 4,922 $ 5,243 $ 19,427 Gross Margin 3,339 3,665 3,617 3,860 14,481 Net Earnings 1,206 1,188 1,215 898 4,507 Net Earnings Attributable to: Noncontrolling Interest 11 22 13 4 50 BMS 1,195 1,166 1,202 894 4,457 Earnings per Share - Basic (a) $ 0.72 $ 0.70 $ 0.72 $ 0.53 $ 2.67 Earnings per Share - Diluted (a) 0.71 0.69 0.72 0.53 2.65 Cash dividends declared per common share $ 0.38 $ 0.38 $ 0.38 $ 0.39 $ 1.53 Cash and cash equivalents $ 2,644 $ 2,934 $ 3,432 $ 4,237 $ 4,237 Marketable securities (b) 5,352 4,998 5,163 4,832 4,832 Total Assets 31,892 32,831 33,727 33,707 33,707 Long-term debt (c) 6,593 6,581 6,585 6,465 6,465 Equity 14,551 15,078 15,781 16,347 16,347 Dollars in Millions, except per share data First Quarter Second Quarter Third Quarter Fourth Quarter Year 2015 Total Revenues $ 4,041 $ 4,163 $ 4,069 $ 4,287 $ 16,560 Gross Margin 3,194 3,150 2,972 3,335 12,651 Net Earnings/(Loss) 1,199 (110 ) 730 (188 ) 1,631 Net Earnings/(Loss) Attributable to: Noncontrolling Interest 13 20 24 9 66 BMS 1,186 (130 ) 706 (197 ) 1,565 Earnings/(Loss) per Share - Basic (a) $ 0.71 $ (0.08 ) $ 0.42 $ (0.12 ) $ 0.94 Earnings/(Loss) per Share - Diluted (a) 0.71 (0.08 ) 0.42 (0.12 ) 0.93 Cash dividends declared per common share $ 0.37 $ 0.37 $ 0.37 $ 0.38 $ 1.49 Cash and cash equivalents $ 6,294 $ 4,199 $ 3,975 $ 2,385 $ 2,385 Marketable securities (b) 5,592 5,909 6,065 6,545 6,545 Total Assets 33,579 31,954 31,779 31,748 31,748 Long-term debt 7,127 6,615 6,632 6,550 6,550 Equity 15,689 15,291 15,273 14,424 14,424 (a) Earnings per share for the quarters may not add to the amounts for the year, as each period is computed on a discrete basis. (b) Marketable securities includes current and non-current assets. (c) Long-term debt includes the current portion. |
Selected Quarterly Data Specified Items [Table Text Block] | The following specified items affected the comparability of results in 2016 and 2015 : 2016 Dollars in Millions First Quarter Second Quarter Third Quarter Fourth Quarter Year Cost of products sold (a) $ 4 $ 4 $ 7 $ 6 $ 21 License and asset acquisition charges 125 139 45 130 439 IPRD impairments — — — 13 13 Accelerated depreciation and other 13 13 14 43 83 Research and development 138 152 59 186 535 Provision for restructuring 4 18 19 68 109 Litigation and other settlements 43 — (3 ) — 40 Divestiture gains (269 ) (277 ) (13 ) — (559 ) Royalties and licensing income — — — (10 ) (10 ) Pension charges 22 25 19 25 91 Intangible asset impairment 15 — — — 15 Other (income)/expense (185 ) (234 ) 22 83 (314 ) Increase/(decrease) to pretax income (43 ) (78 ) 88 275 242 Income tax on items above 83 76 (3 ) (105 ) 51 Increase/(decrease) to net earnings $ 40 $ (2 ) $ 85 $ 170 $ 293 (a) Specified items in cost of products sold are accelerated depreciation, asset impairment and other shutdown costs. 2015 Dollars in Millions First Quarter Second Quarter Third Quarter Fourth Quarter Year Cost of products sold (a) $ 34 $ 25 $ 15 $ 10 $ 84 Marketing, selling and administrative (b) 1 3 2 4 10 License and asset acquisition charges 162 869 94 554 1,679 IPRD impairments — — — 160 160 Accelerated depreciation and other — 2 15 27 44 Research and development 162 871 109 741 1,883 Provision for restructuring 12 28 10 65 115 Litigation and other settlements 14 1 — 143 158 Divestiture (gains)/losses (152 ) (8 ) (198 ) 171 (187 ) Pension charges 27 36 48 49 160 Intangible asset impairment 13 — — — 13 Written option adjustment (36 ) — (87 ) — (123 ) Loss on debt redemption — 180 — — 180 Other (income)/expense (122 ) 237 (227 ) 428 316 Increase/(decrease) to pretax income 75 1,136 (101 ) 1,183 2,293 Income tax on items above (68 ) (116 ) 43 (339 ) (480 ) Increase/(decrease) to net earnings $ 7 $ 1,020 $ (58 ) $ 844 $ 1,813 (a) Specified items in cost of products sold are accelerated depreciation, asset impairment and other shutdown costs. (b) Specified items in marketing, selling and administrative are process standardization implementation costs. |
ACCOUNTING POLICIES (Details)
ACCOUNTING POLICIES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Direct Operating Costs [Abstract] | |||
Shipping and handling costs | $ 70 | $ 85 | $ 115 |
Advertising and product promotion costs | $ 789 | $ 825 | $ 734 |
Buildings [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life of property, plant and equipment | 20 years | ||
Buildings [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life of property, plant and equipment | 50 years | ||
Machinery equipment and fixtures [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life of property, plant and equipment | 3 years | ||
Machinery equipment and fixtures [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life of property, plant and equipment | 20 years |
ACCOUNTING POLICIES (New Accoun
ACCOUNTING POLICIES (New Accounting Pronouncements) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Change in cash provided by operating activities | $ 2,850 | $ 1,832 | $ 3,148 |
Change in cash used in financing activities | 2,445 | 3,351 | $ 2,437 |
ASU 2016-02 - Leases [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Undiscounted value of lease obligations | 800 | ||
ASU 2016-09 - Shared-based compensation [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Change in cash provided by operating activities | 208 | 273 | |
Change in cash used in financing activities | 208 | $ 273 | |
ASU 2016-16 - Transfer of IP [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reduction of prepaid receivables and deferred tax assets | 1,000 | ||
Internal Intellectual Property Amortization | $ 86 |
BUSINESS SEGMENT INFORMATION (M
BUSINESS SEGMENT INFORMATION (Major Customers) (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Concentration Risk [Line Items] | |||
The number of the largest pharmaceutical wholesalers in the U.S. | 3 | ||
Customer Concentration Risk [Member] | McKesson Corporation [Member] | |||
Concentration Risk [Line Items] | |||
Gross sales to three largest pharmaceutical wholesalers in the U.S., percentage of total gross sales | 22.00% | 21.00% | 20.00% |
Customer Concentration Risk [Member] | Amerisourcebergen Corporation [Member] | |||
Concentration Risk [Line Items] | |||
Gross sales to three largest pharmaceutical wholesalers in the U.S., percentage of total gross sales | 18.00% | 16.00% | 17.00% |
Customer Concentration Risk [Member] | Cardinal Health, Inc. [Member] | |||
Concentration Risk [Line Items] | |||
Gross sales to three largest pharmaceutical wholesalers in the U.S., percentage of total gross sales | 14.00% | 12.00% | 12.00% |
BUSINESS SEGMENT INFORMATION (G
BUSINESS SEGMENT INFORMATION (Geographic Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total Revenues | $ 5,243 | $ 4,922 | $ 4,871 | $ 4,391 | $ 4,287 | $ 4,069 | $ 4,163 | $ 4,041 | $ 19,427 | $ 16,560 | $ 15,879 |
Property, plant and equipment | 4,980 | 4,412 | 4,980 | 4,412 | |||||||
United States [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total Revenues | 10,720 | 8,188 | 7,716 | ||||||||
Property, plant and equipment | 3,865 | 3,681 | 3,865 | 3,681 | |||||||
Europe [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total Revenues | 4,215 | 3,491 | 3,592 | ||||||||
Property, plant and equipment | 1,003 | 616 | 1,003 | 616 | |||||||
Rest Of World [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total Revenues | 3,964 | 4,142 | 3,459 | ||||||||
Property, plant and equipment | $ 112 | $ 115 | 112 | 115 | |||||||
Other Region [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total Revenues | $ 528 | $ 739 | $ 1,112 | ||||||||
Japan [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Percent of Total Revenue | 7.00% | 10.00% | 6.00% |
BUSINESS SEGMENT INFORMATION (N
BUSINESS SEGMENT INFORMATION (Net Sales of Key Products) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Net product sales | $ 17,702 | $ 14,045 | $ 11,660 | ||||||||
Alliance revenues | 1,725 | 2,515 | 4,219 | ||||||||
Other revenues | 96 | 107 | 391 | ||||||||
Total Revenues | $ 5,243 | $ 4,922 | $ 4,871 | $ 4,391 | $ 4,287 | $ 4,069 | $ 4,163 | $ 4,041 | 19,427 | 16,560 | 15,879 |
Empliciti [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | 150 | 3 | |||||||||
Erbitux [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | 501 | 723 | |||||||||
Opdivo [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | 3,774 | 942 | 6 | ||||||||
Sprycel [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | 1,824 | 1,620 | 1,493 | ||||||||
Yervoy [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | 1,053 | 1,126 | 1,308 | ||||||||
Eliquis [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | 3,343 | 1,860 | 774 | ||||||||
Orencia [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | 2,265 | 1,885 | 1,652 | ||||||||
Baraclude [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | 1,192 | 1,312 | 1,441 | ||||||||
Hepatitis C Franchise [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | 1,578 | 1,603 | 256 | ||||||||
Reyataz [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | 912 | 1,139 | 1,362 | ||||||||
Sustiva Franchise [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | 1,065 | 1,252 | 1,444 | ||||||||
Abilify [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | 128 | 746 | 2,020 | ||||||||
Mature Products And All Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | 2,143 | 2,571 | 3,400 | ||||||||
Alliance Partners [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net product sales | 5,568 | 4,308 | 3,531 | ||||||||
Alliance revenues | 1,629 | 2,408 | 3,828 | ||||||||
Total Revenues | $ 7,197 | $ 6,716 | $ 7,359 |
ALLIANCES (Pfizer) (Details)
ALLIANCES (Pfizer) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Alliances Statement [Line Items] | |||||||||||
Percentage of third-party product sales recognized when BMS is the principal in the end customer sale | 100.00% | 100.00% | |||||||||
Net product sales | $ 17,702 | $ 14,045 | $ 11,660 | ||||||||
Alliance revenues | 1,725 | 2,515 | 4,219 | ||||||||
Total Revenues | $ 5,243 | $ 4,922 | $ 4,871 | $ 4,391 | $ 4,287 | $ 4,069 | $ 4,163 | $ 4,041 | 19,427 | 16,560 | 15,879 |
Receivables - from alliance partners | 903 | 958 | 903 | 958 | |||||||
Amortization of deferred income | 244 | 307 | 362 | ||||||||
Upfront payments for licensing and alliance arrangements | 15 | 619 | 70 | ||||||||
Deferred income - Cash flow | (64) | 218 | 613 | ||||||||
Eliquis [Member] | |||||||||||
Alliances Statement [Line Items] | |||||||||||
Total Revenues | 3,343 | 1,860 | 774 | ||||||||
Alliance Partners [Member] | |||||||||||
Alliances Statement [Line Items] | |||||||||||
Net product sales | 5,568 | 4,308 | 3,531 | ||||||||
Alliance revenues | 1,629 | 2,408 | 3,828 | ||||||||
Total Revenues | 7,197 | 6,716 | 7,359 | ||||||||
Payments to/(from) alliance partner - Cost of products sold | 2,129 | 1,655 | 1,394 | ||||||||
Payments to/(from) alliance partner - Marketing, selling and administrative | (28) | 15 | 134 | ||||||||
Payments to/(from) alliance partner - Research and development | 56 | 693 | 8 | ||||||||
Payments to/(from) alliance partners - Other (income)/expense | (1,009) | (733) | (1,076) | ||||||||
Noncontrolling interest, pre-tax | 16 | 51 | 38 | ||||||||
Receivables - from alliance partners | 903 | 958 | 903 | 958 | |||||||
Accounts payable - to alliance partners | 555 | 542 | 555 | 542 | |||||||
Deferred income | 1,194 | 1,459 | 1,194 | 1,459 | |||||||
Pfizer [Member] | |||||||||||
Alliances Statement [Line Items] | |||||||||||
Net product sales | 3,306 | 1,849 | 771 | ||||||||
Alliance revenues | 37 | 11 | 3 | ||||||||
Total Revenues | 3,343 | 1,860 | 774 | ||||||||
Deferred income | $ 521 | $ 576 | 521 | 576 | |||||||
Cost of products sold - Profit sharing | 1,595 | 895 | 363 | ||||||||
Other (income)/expense - Amortization of deferred income | $ (55) | (55) | (50) | ||||||||
Deferred income - Cash flow | $ 20 | $ 100 | |||||||||
Pfizer [Member] | Eliquis [Member] | |||||||||||
Alliances Statement [Line Items] | |||||||||||
Minimum percentage of reimbursement for development costs from alliance partner | 50.00% | 50.00% | |||||||||
Maximum percentage of reimbursement for development costs from alliance partner | 60.00% | 60.00% | |||||||||
Total upfront, milestone and other licensing payments received to date | $ 884 | $ 884 |
ALLIANCES (Gilead) (Details)
ALLIANCES (Gilead) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Alliances Statement [Line Items] | |||
Alliance revenues | $ 1,725 | $ 2,515 | $ 4,219 |
Equity in net loss of affiliates | (77) | (83) | (107) |
Gilead [Member] | |||
Alliances Statement [Line Items] | |||
Alliance revenues | 934 | 1,096 | 1,255 |
Equity in net loss of affiliates | 12 | 17 | $ 39 |
Deferred income | $ 634 | $ 699 | |
Gilead [Member] | Bulk efavirenz component of Atripla [Member] | |||
Alliances Statement [Line Items] | |||
Total numbers of months to receive royalty payment from alliance partner | 36 months | ||
Percentage of net sales recognized first year following the termination | 55.00% | ||
Percentage of net sales recognized second year following the termination | 35.00% | ||
Percentage of net sales recognized third year following the termination of the agreement | 15.00% |
ALLIANCES (Otsuka) (Details)
ALLIANCES (Otsuka) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Alliances Statement [Line Items] | ||||||||||||
Net product sales | $ 17,702 | $ 14,045 | $ 11,660 | |||||||||
Alliance revenues | 1,725 | 2,515 | 4,219 | |||||||||
Total Revenues | $ 5,243 | $ 4,922 | $ 4,871 | $ 4,391 | $ 4,287 | $ 4,069 | $ 4,163 | $ 4,041 | 19,427 | 16,560 | 15,879 | |
Abilify [Member] | ||||||||||||
Alliances Statement [Line Items] | ||||||||||||
Total Revenues | 128 | $ 746 | $ 2,020 | |||||||||
Otsuka [Member] | ||||||||||||
Alliances Statement [Line Items] | ||||||||||||
Percentage of net sales recognized from alliance | 50.00% | 50.00% | 33.00% | |||||||||
Net product sales | 1,670 | $ 1,501 | $ 1,493 | |||||||||
Alliance revenues | 2 | 604 | 1,778 | |||||||||
Total Revenues | 1,672 | 2,105 | 3,271 | |||||||||
Cost of products sold - Cost of product supply | 30 | 35 | 67 | |||||||||
Amortization of the extension payment | 21 | 66 | ||||||||||
Otsuka [Member] | United States [Member] | Abilify [Member] | ||||||||||||
Alliances Statement [Line Items] | ||||||||||||
Cost of products sold - Royalties | $ 10 | 30 | 90 | |||||||||
Otsuka [Member] | European Union [Member] | Abilify [Member] | ||||||||||||
Alliances Statement [Line Items] | ||||||||||||
Percentage of net sales recognized from alliance | 65.00% | 65.00% | ||||||||||
Otsuka [Member] | Oncology Territory [Member] | Sprycel and Ixempra [Member] | ||||||||||||
Alliances Statement [Line Items] | ||||||||||||
Cost of products sold - Oncology fee | $ 304 | $ 299 | $ 297 | |||||||||
Otsuka [Member] | Oncology Territory [Member] | Sprycel and Ixempra [Member] | Operating expense up to $175 million [Member] | ||||||||||||
Alliances Statement [Line Items] | ||||||||||||
Percentage of operating expense reimbursements from alliance | 20.00% | 20.00% | ||||||||||
Amount of operating expense at or below which alliance partner will reimburse given percentage | $ 175 | $ 175 | ||||||||||
Otsuka [Member] | Oncology Territory [Member] | Sprycel and Ixempra [Member] | Operating expenses over $175 million [Member] | ||||||||||||
Alliances Statement [Line Items] | ||||||||||||
Percentage of operating expense reimbursements from alliance | 1.00% | 1.00% | ||||||||||
Amount of operating expense over which alliance partner will reimburse given percentage | $ 175 | $ 175 | ||||||||||
Otsuka [Member] | Oncology Territory [Member] | Sprycel and Ixempra [Member] | Annual net sales up to $400 million [Member] | ||||||||||||
Alliances Statement [Line Items] | ||||||||||||
Percentage of net sales payable to alliance partner | 65.00% | 65.00% | 30.00% | |||||||||
Range of sales at which a given percentage will be paid to alliance partner - maximum | $ 400 | |||||||||||
Otsuka [Member] | Oncology Territory [Member] | Sprycel and Ixempra [Member] | Annual net sales between $400 and $600 million [Member] | ||||||||||||
Alliances Statement [Line Items] | ||||||||||||
Percentage of net sales payable to alliance partner | 12.00% | 12.00% | 5.00% | |||||||||
Range of sales at which a given percentage will be paid to alliance partner - minimum | $ 400 | |||||||||||
Range of sales at which a given percentage will be paid to alliance partner - maximum | $ 600 | |||||||||||
Otsuka [Member] | Oncology Territory [Member] | Sprycel and Ixempra [Member] | Annual net sales between $600 and $800 million [Member] | ||||||||||||
Alliances Statement [Line Items] | ||||||||||||
Percentage of net sales payable to alliance partner | 3.00% | 3.00% | 3.00% | |||||||||
Range of sales at which a given percentage will be paid to alliance partner - minimum | $ 600 | |||||||||||
Range of sales at which a given percentage will be paid to alliance partner - maximum | $ 800 | |||||||||||
Otsuka [Member] | Oncology Territory [Member] | Sprycel and Ixempra [Member] | Annual net sales between $800 million and $1 billion [Member] | ||||||||||||
Alliances Statement [Line Items] | ||||||||||||
Percentage of net sales payable to alliance partner | 2.00% | 2.00% | 2.00% | |||||||||
Range of sales at which a given percentage will be paid to alliance partner - minimum | $ 800 | |||||||||||
Range of sales at which a given percentage will be paid to alliance partner - maximum | $ 1,000 | |||||||||||
Otsuka [Member] | Oncology Territory [Member] | Sprycel and Ixempra [Member] | Annual net sales over $1 billion [Member] | ||||||||||||
Alliances Statement [Line Items] | ||||||||||||
Percentage of net sales payable to alliance partner | 1.00% | 1.00% | 1.00% | |||||||||
Range of sales at which a given percentage will be paid to alliance partner - minimum | $ 1,000 |
ALLIANCES (Lilly) (Details)
ALLIANCES (Lilly) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Alliances Statement [Line Items] | |||||||||||
Net product sales | $ 17,702 | $ 14,045 | $ 11,660 | ||||||||
Alliance revenues | 1,725 | 2,515 | 4,219 | ||||||||
Total Revenues | $ 5,243 | $ 4,922 | $ 4,871 | $ 4,391 | $ 4,287 | $ 4,069 | $ 4,163 | $ 4,041 | 19,427 | 16,560 | 15,879 |
Cost of products sold - Amortization of intangible asset | 178 | 183 | 286 | ||||||||
Royalties | (618) | (293) | (192) | ||||||||
Divestiture loss | 564 | 194 | 564 | ||||||||
Erbitux [Member] | |||||||||||
Alliances Statement [Line Items] | |||||||||||
Total Revenues | 501 | 723 | |||||||||
Lilly [Member] | |||||||||||
Alliances Statement [Line Items] | |||||||||||
Net product sales | 492 | 691 | |||||||||
Alliance revenues | 9 | 32 | |||||||||
Total Revenues | 501 | 723 | |||||||||
Cost of products sold - Distribution fees and royalties | 204 | 287 | |||||||||
Cost of products sold - Amortization of intangible asset | 11 | 37 | |||||||||
Cost of products sold - Cost of product supply | 46 | $ 69 | |||||||||
Royalties | (246) | (70) | |||||||||
Divestiture loss | $ 171 | ||||||||||
Lilly [Member] | Erbitux [Member] | North America [Member] | |||||||||||
Alliances Statement [Line Items] | |||||||||||
Distribution fee, percentage of net sales | 39.00% | 39.00% | |||||||||
Divestiture non-cash charge | $ 171 | ||||||||||
Royalty sales threshold - 2015 | 165 | ||||||||||
Royalty sales threshold - 2016 | 650 | ||||||||||
Royalty sales threshold - 2017 | 650 | ||||||||||
Royalty sales threshold - 2018 | 480 | ||||||||||
Royalties | $ 227 | 56 | |||||||||
Lilly and Merck KGaA [Member] | Erbitux [Member] | Japan [Member] | |||||||||||
Alliances Statement [Line Items] | |||||||||||
Percentage share of pre-tax profit/loss received from the net sales of a collaboration partner to be shared further equally with another collaboration partner. | 50.00% | 50.00% | |||||||||
Merck KGaA [Member] | Erbitux [Member] | Japan [Member] | |||||||||||
Alliances Statement [Line Items] | |||||||||||
Royalties | $ 19 | $ 14 | |||||||||
Maximum [Member] | Lilly [Member] | Erbitux [Member] | North America [Member] | |||||||||||
Alliances Statement [Line Items] | |||||||||||
Royalty rate on net sales | 38.00% | ||||||||||
Minimum [Member] | Lilly [Member] | Erbitux [Member] | North America [Member] | |||||||||||
Alliances Statement [Line Items] | |||||||||||
Royalty rate on net sales | 20.00% |
ALLIANCES (AstraZeneca) (Detail
ALLIANCES (AstraZeneca) (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Sep. 30, 2014USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | |
Alliances Statement [Line Items] | ||||||||||||||
Number of agreements in alliance | 3 | 3 | ||||||||||||
The percentage of capital expenditures to be reimbursed by AstraZeneca | 50.00% | |||||||||||||
Net product sales | $ 17,702 | $ 14,045 | $ 11,660 | |||||||||||
Alliance revenues | 1,725 | 2,515 | 4,219 | |||||||||||
Total Revenues | $ 5,243 | $ 4,922 | $ 4,871 | $ 4,391 | $ 4,287 | $ 4,069 | $ 4,163 | $ 4,041 | 19,427 | 16,560 | 15,879 | |||
Royalties | (618) | (293) | (192) | |||||||||||
Transitional services | (238) | (122) | (170) | |||||||||||
Divestiture gain | (564) | (194) | (564) | |||||||||||
Deferred income - Cash flow | (64) | 218 | 613 | |||||||||||
Divestiture and other proceeds | 1,317 | 697 | 3,565 | |||||||||||
AstraZeneca [Member] | ||||||||||||||
Alliances Statement [Line Items] | ||||||||||||||
Proceeds received at closing for sale of business | 2,700 | |||||||||||||
Total contingent regulatory and sales based milestone payments | 1,400 | |||||||||||||
Contingent approval milestones | 800 | |||||||||||||
Total contingent sales based milestones | 600 | |||||||||||||
Contingent payments related to transfer of certain assets and businesses | 225 | |||||||||||||
Business sale total consideration received | 179 | 3,800 | ||||||||||||
Contingent regulatory milestone consideration received | 700 | |||||||||||||
Portion of proceeds allocated to the sale of business | 3,300 | |||||||||||||
Portion of proceeds allocated to undelivered elements | 492 | |||||||||||||
Total earned royalties | 235 | |||||||||||||
Allocation of goodwill to disposal group | 600 | |||||||||||||
Reversal of deferred tax liabilities attributed to inside tax basis of disposal group | 821 | |||||||||||||
Net product sales | 14 | 160 | ||||||||||||
Alliance revenues | 129 | 182 | 135 | |||||||||||
Total Revenues | 129 | 196 | 295 | |||||||||||
Cost of products sold - Profit sharing | 1 | 79 | ||||||||||||
Cost reimbursements | (33) | |||||||||||||
Other (income)/expense - Amortization of deferred income | (113) | (105) | (80) | |||||||||||
Royalties | (227) | (215) | (192) | |||||||||||
Transitional services | (7) | (12) | (90) | |||||||||||
Divestiture gain | $ 79 | $ 292 | (82) | (536) | ||||||||||
Deferred income - Cash flow | 19 | 34 | 315 | |||||||||||
Divestiture and other proceeds | 216 | 374 | $ 3,495 | |||||||||||
Deferred income | 38 | $ 144 | 38 | $ 144 | ||||||||||
AstraZeneca [Member] | Amylin Acquisition [Member] | ||||||||||||||
Alliances Statement [Line Items] | ||||||||||||||
Payment made by an alliance partner to enter into an alliance agreement | $ 3,600 | |||||||||||||
Payment made by an alliance partner to establish equal governance rights over certain key strategic and financial decisions regarding the alliance | $ 135 | |||||||||||||
Useful life of property, plant and equipment | 15 years | |||||||||||||
AstraZeneca [Member] | Onglyza, Kombiglyze and Forxiga [Member] | ||||||||||||||
Alliances Statement [Line Items] | ||||||||||||||
Royalty rate sales threshold - Minimum | 500 | 500 | ||||||||||||
Royalty rate sales threshold - Maximum | $ 500 | $ 500 | ||||||||||||
AstraZeneca [Member] | Onglyza Kombiglyze [Member] | Upfront, milestone and other licensing payments [Member] | ||||||||||||||
Alliances Statement [Line Items] | ||||||||||||||
Total upfront, milestone and other licensing payments received to date | $ 300 | |||||||||||||
AstraZeneca [Member] | Amylin Related Products [Member] | ||||||||||||||
Alliances Statement [Line Items] | ||||||||||||||
Royalty rate on net sales | 2.00% | 2.00% | ||||||||||||
Royalty rate on net sales - 2017 | 5.00% | |||||||||||||
Royalty rate on net sales - 2018 | 10.00% | |||||||||||||
Royalty rate on net sales - 2019 | 12.00% | |||||||||||||
Percentage of potential future royalties transferred | 70.00% | |||||||||||||
AstraZeneca [Member] | Farxiga [Member] | Upfront, milestone and other licensing payments [Member] | ||||||||||||||
Alliances Statement [Line Items] | ||||||||||||||
Total upfront, milestone and other licensing payments received to date | $ 250 | |||||||||||||
AstraZeneca [Member] | Bydureon [Member] | ||||||||||||||
Alliances Statement [Line Items] | ||||||||||||||
Useful life of intangible asset | 13 years | |||||||||||||
AstraZeneca [Member] | Byetta [Member] | ||||||||||||||
Alliances Statement [Line Items] | ||||||||||||||
Useful life of intangible asset | 7 years | |||||||||||||
AstraZeneca [Member] | Symlin [Member] | ||||||||||||||
Alliances Statement [Line Items] | ||||||||||||||
Useful life of intangible asset | 9 years | |||||||||||||
AstraZeneca [Member] | Myalept [Member] | ||||||||||||||
Alliances Statement [Line Items] | ||||||||||||||
Useful life of intangible asset | 12 years | |||||||||||||
CPPIB [Member] | ||||||||||||||
Alliances Statement [Line Items] | ||||||||||||||
Royalties | $ 134 | |||||||||||||
Maximum [Member] | AstraZeneca [Member] | Onglyza, Kombiglyze and Forxiga [Member] | ||||||||||||||
Alliances Statement [Line Items] | ||||||||||||||
Royalty rate on net sales | 27.00% | 35.00% | 44.00% | |||||||||||
Royalty rate on net sales - 2017 | 12.00% | |||||||||||||
Royalty rate on net sales - 2018 | 20.00% | |||||||||||||
Royalty rate on net sales - 2019 | 22.00% | |||||||||||||
Royalty rate on net sales - future periods | 25.00% | |||||||||||||
Maximum [Member] | AstraZeneca [Member] | Amylin Related Products [Member] | ||||||||||||||
Alliances Statement [Line Items] | ||||||||||||||
Royalty rate on net sales - future periods | 12.00% | |||||||||||||
Minimum [Member] | AstraZeneca [Member] | Onglyza, Kombiglyze and Forxiga [Member] | ||||||||||||||
Alliances Statement [Line Items] | ||||||||||||||
Royalty rate on net sales | 9.00% | 7.00% | 3.00% | |||||||||||
Royalty rate on net sales - 2017 | 12.00% | |||||||||||||
Royalty rate on net sales - 2018 | 20.00% | |||||||||||||
Royalty rate on net sales - 2019 | 22.00% | |||||||||||||
Royalty rate on net sales - future periods | 14.00% | |||||||||||||
Minimum [Member] | AstraZeneca [Member] | Amylin Related Products [Member] | ||||||||||||||
Alliances Statement [Line Items] | ||||||||||||||
Royalty rate on net sales - future periods | 5.00% |
ALLIANCES (Sanofi) (Details)
ALLIANCES (Sanofi) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Alliances Statement [Line Items] | |||||||||||
Net product sales | $ 17,702 | $ 14,045 | $ 11,660 | ||||||||
Alliance revenues | 1,725 | 2,515 | 4,219 | ||||||||
Total Revenues | $ 5,243 | $ 4,922 | $ 4,871 | $ 4,391 | $ 4,287 | $ 4,069 | $ 4,163 | $ 4,041 | 19,427 | 16,560 | 15,879 |
Equity in net income of affiliates | (77) | (83) | (107) | ||||||||
Noncontrolling interest | $ 170 | 158 | 170 | 158 | |||||||
Sanofi [Member] | Avapro Avalide [Member] | Active Pharmaceutical Ingredient Supply Arrangements [Member] | |||||||||||
Alliances Statement [Line Items] | |||||||||||
Alliance revenues | 80 | 90 | |||||||||
Sanofi [Member] | Avapro, Avalide, and Plavix [Member] | |||||||||||
Alliances Statement [Line Items] | |||||||||||
Payment due from Sanofi in 2018 related to restructuring of the alliance agreement | 200 | ||||||||||
Net product sales | 38 | 110 | 102 | ||||||||
Alliance revenues | 200 | 296 | 317 | ||||||||
Total Revenues | 238 | 406 | 419 | ||||||||
Noncontrolling interest - pre-tax | $ 16 | 51 | 38 | ||||||||
Sanofi [Member] | Territory Covering Americas and Australia [Member] | Avapro, Avalide, and Plavix [Member] | |||||||||||
Alliances Statement [Line Items] | |||||||||||
Controlling interest ownership percentage | 50.10% | 50.10% | |||||||||
Royalty revenue | $ 195 | 211 | 223 | ||||||||
Distribution (to)/from Sanofi - Noncontrolling interest | (15) | (45) | (49) | ||||||||
Noncontrolling interest | $ 45 | 44 | 45 | 44 | |||||||
Sanofi [Member] | Territory Covering Europe and Asia [Member] | Avapro, Avalide, and Plavix [Member] | |||||||||||
Alliances Statement [Line Items] | |||||||||||
Equity in net income of affiliates | (95) | (104) | (146) | ||||||||
Distributions from Sanofi - Noncontrolling interest | 99 | 105 | 153 | ||||||||
Investment in affiliates | 21 | 25 | 21 | 25 | |||||||
Net sales | 235 | 257 | 360 | ||||||||
Gross profit | 195 | 213 | 297 | ||||||||
Net income | 192 | 209 | 292 | ||||||||
Sanofi [Member] | Territory Covering Europe and Asia [Member] | Avapro, Avalide, and Plavix [Member] | Discovery Royalties [Member] | |||||||||||
Alliances Statement [Line Items] | |||||||||||
Cost of products sold | 20 | 22 | 32 | ||||||||
Sanofi [Member] | Territory Covering Europe and Asia [Member] | Avapro, Avalide, and Plavix [Member] | Receivables And Payables Net Cash Distributions Intercompany Balances [Member] | |||||||||||
Alliances Statement [Line Items] | |||||||||||
Current assets and current liabilities | $ 69 | $ 76 | $ 69 | $ 76 | $ 94 |
ALLIANCES (Ono) (Details)
ALLIANCES (Ono) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Alliances Statement [Line Items] | |||||||||||
Net product sales | $ 17,702 | $ 14,045 | $ 11,660 | ||||||||
Alliance revenues | 1,725 | 2,515 | 4,219 | ||||||||
Total Revenues | $ 5,243 | $ 4,922 | $ 4,871 | $ 4,391 | $ 4,287 | $ 4,069 | $ 4,163 | $ 4,041 | $ 19,427 | 16,560 | 15,879 |
Ono [Member] | |||||||||||
Alliances Statement [Line Items] | |||||||||||
Profit sharing involving only one compound - maximum | 80.00% | ||||||||||
Profit sharing involving only one compound - minimum | 20.00% | ||||||||||
Co-promotion fee percentage | 60.00% | ||||||||||
Net product sales | $ 147 | 113 | 113 | ||||||||
Alliance revenues | 280 | 61 | 28 | ||||||||
Total Revenues | $ 427 | $ 174 | $ 141 | ||||||||
North America [Member] | Ono [Member] | |||||||||||
Alliances Statement [Line Items] | |||||||||||
Royalty rate due to regulatory approvals | 4.00% | ||||||||||
Other Territories [Member] | Ono [Member] | |||||||||||
Alliances Statement [Line Items] | |||||||||||
Royalty rate due to regulatory approvals | 15.00% |
ALLIANCES (AbbVie) (Details)
ALLIANCES (AbbVie) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Alliances Statement [Line Items] | |||
Net product sales | $ 17,702 | $ 14,045 | $ 11,660 |
Potential milestones to be paid | 938 | 2,325 | |
AbbVie [Member] | |||
Alliances Statement [Line Items] | |||
Net product sales | $ 132 | $ 3 | |
Maximum percentage of reimbursement for development costs from alliance partner | 20.00% | ||
Regulatory milestones paid through 2016 | $ 140 | ||
Approval milestones paid through 2016 | 52 | ||
Potential milestones to be paid | 120 | ||
Potential sales based milestones to be paid | $ 200 | ||
United States [Member] | AbbVie [Member] | |||
Alliances Statement [Line Items] | |||
Profit sharing involving only one compound - maximum | 30.00% |
ALLIANCES (F-Star) (Details)
ALLIANCES (F-Star) (Details) - F-Star [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2014 | |
Alliances Statement [Line Items] | ||
Option and licensing rights payment | $ 50 | |
Days following obtaining proof of concept | 60 days | |
Option exercise payment | $ 100 | |
Consideration for contingent development and regulatory approval | $ 325 | |
Change In Noncontrolling Interest Related to Variable Interest Entities | 59 | |
Fair value of FS102 IPRD asset | $ 75 |
ALLIANCES (Promedior) (Details)
ALLIANCES (Promedior) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Alliances Statement [Line Items] | |||
Upfront payments for licensing and alliance arrangements | $ 15 | $ 619 | $ 70 |
Contingent and regulatory milestone payments | 938 | 2,325 | |
Promedior [Member] | |||
Alliances Statement [Line Items] | |||
Warrant upfront payment | 84 | ||
Upfront payment capitalized | 66 | ||
Upfront payments for licensing and alliance arrangements | $ 150 | ||
Warrant maximum exercise payment | 300 | ||
Warrant exercise minimum payment | 250 | ||
Contingent and regulatory milestone payments | $ 800 |
ALLIANCES (Five Prime) (Details
ALLIANCES (Five Prime) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Alliances Statement [Line Items] | |||
Upfront payments for licensing and alliance arrangements | $ 15 | $ 619 | $ 70 |
Contingent and regulatory milestone payments | 938 | 2,325 | |
Five Prime [Member] | |||
Alliances Statement [Line Items] | |||
Upfront payments for licensing and alliance arrangements | $ 350 | ||
Contingent and regulatory milestone payments | $ 1,400 |
ALLIANCES (Reckitt Benckiser Gr
ALLIANCES (Reckitt Benckiser Group) (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Alliances Statement [Line Items] | ||||
Alliance revenues | $ 1,725 | $ 2,515 | $ 4,219 | |
Divestiture gain | (564) | (194) | (564) | |
Other changes in operating assets and liabilities | (100) | (491) | (8) | |
Divestiture and other proceeds | $ 1,317 | 697 | 3,565 | |
Reckitt Benckiser Group [Member] | ||||
Alliances Statement [Line Items] | ||||
Number of years in alliance period | 3 | |||
Charge included in other (income)expense for change in fair value of option | 123 | |||
Alliance revenues | $ 48 | 140 | 170 | |
Divestiture gain | 277 | |||
Other changes in operating assets and liabilities | (129) | $ 20 | ||
Divestiture and other proceeds | $ 317 | |||
Deferred income | $ 36 | |||
Reckitt Benckiser Group [Member] | Over The Counter Products [Member] | Upfront, milestone and other licensing payments [Member] | ||||
Alliances Statement [Line Items] | ||||
Upfront, milestone and other licensing payments received | $ 485 |
ALLIANCES (The Medicines Compan
ALLIANCES (The Medicines Company) (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Alliances Statement [Line Items] | ||||
Alliance revenues | $ 1,725 | $ 2,515 | $ 4,219 | |
Divestiture gain | 564 | 194 | 564 | |
Divestiture and other proceeds | $ 1,317 | 697 | 3,565 | |
The Medicines Company [Member] | ||||
Alliances Statement [Line Items] | ||||
Alliance revenues | 8 | 66 | ||
Divestiture gain | (59) | |||
Divestiture and other proceeds | $ 132 | |||
The Medicines Company [Member] | Recothrom [Member] | ||||
Alliances Statement [Line Items] | ||||
Number of years in alliance period | 2 | |||
The Medicines Company [Member] | Recothrom [Member] | Upfront, milestone and other licensing payments [Member] | ||||
Alliances Statement [Line Items] | ||||
Upfront, milestone and other licensing payments received | $ 115 | |||
Written Option Liability [Member] | The Medicines Company [Member] | ||||
Alliances Statement [Line Items] | ||||
Fair value of option | $ 35 |
ALLIANCES (Valeant) (Details)
ALLIANCES (Valeant) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2012 | |
Alliances Statement [Line Items] | ||||
Alliance revenues | $ 1,725 | $ 2,515 | $ 4,219 | |
Divestiture gain | 564 | 194 | 564 | |
Other changes in operating assets and liabilities | (100) | (491) | (8) | |
Divestiture and other proceeds | $ 1,317 | 697 | 3,565 | |
Valeant [Member] | ||||
Alliances Statement [Line Items] | ||||
Upfront, milestone and other licensing payments received | $ 79 | |||
Charge included in other (income)expense for change in fair value of option | 16 | |||
Alliance revenues | (1) | 44 | ||
Divestiture gain | (88) | |||
Other changes in operating assets and liabilities | 16 | |||
Divestiture and other proceeds | $ 61 | |||
Written Option Liability [Member] | Valeant [Member] | ||||
Alliances Statement [Line Items] | ||||
Fair value of option | $ 34 |
ACQUISITIONS (Details)
ACQUISITIONS (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Asset acquisition [Line Items] | |||
Asset acquisition upfront payment | $ 185 | $ 1,014 | |
Upfront payment allocated to research and development expenses | 174 | 967 | |
Deferred tax assets related to asset acquisition | 11 | 47 | |
Contingent and regulatory milestone payments | 938 | 2,325 | |
Cormorant [Member] | |||
Asset acquisition [Line Items] | |||
Asset acquisition upfront payment | 35 | ||
Upfront payment allocated to research and development expenses | 35 | ||
Contingent and regulatory milestone payments | 485 | ||
Padlock Therapeutics, Inc. [Member] | |||
Asset acquisition [Line Items] | |||
Asset acquisition upfront payment | 150 | ||
Upfront payment allocated to research and development expenses | 139 | ||
Deferred tax assets related to asset acquisition | 11 | ||
Contingent and regulatory milestone payments | 453 | ||
Cardioxyl Pharmaceuticals, Inc. [Member] | |||
Asset acquisition [Line Items] | |||
Asset acquisition upfront payment | 200 | ||
Upfront payment allocated to research and development expenses | 167 | ||
Deferred tax assets related to asset acquisition | 33 | ||
Contingent and regulatory milestone payments | 1,875 | ||
Flexus Biosciences, Inc. [Member] | |||
Asset acquisition [Line Items] | |||
Asset acquisition upfront payment | 814 | ||
Upfront payment allocated to research and development expenses | 800 | ||
Deferred tax assets related to asset acquisition | 14 | ||
Contingent and regulatory milestone payments | 450 | ||
Acquisition costs | $ 14 | ||
Milestone achieved and paid | $ 100 | ||
iPierian, Inc. [Member] | |||
Asset acquisition [Line Items] | |||
Asset acquisition upfront payment | $ 175 | ||
Upfront payment allocated to research and development expenses | 148 | ||
Deferred tax assets related to asset acquisition | 27 | ||
Contingent and regulatory milestone payments | $ 554 |
DIVESTITURES (Details)
DIVESTITURES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Divestiture proceeds | $ 1,317 | $ 697 | $ 3,565 |
Divestiture gain | (564) | (194) | (564) |
Royalties | (618) | (293) | (192) |
Assets held-for-sale | 134 | ||
Investigational HIV business [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Divestiture proceeds | 387 | ||
Divestiture gain | (272) | ||
Transition fees | 105 | ||
Upfront payment received | 350 | ||
Total contingent development and regulatory milestone payments | 1,100 | ||
Total contingent sales based milestones | 4,300 | ||
Over the counter products - Reckitt [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Divestiture proceeds | 317 | ||
Divestiture gain | (277) | ||
Diabetes business [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Divestiture proceeds | 333 | 374 | 3,495 |
Divestiture gain | (82) | (536) | |
Royalties | (361) | (215) | (192) |
Erbitux [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Divestiture proceeds | 252 | 9 | |
Divestiture gain | 171 | ||
Royalties | (246) | (70) | |
Recothrom [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Divestiture proceeds | 132 | ||
Divestiture gain | (59) | ||
Mature brands - Valeant [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Divestiture proceeds | 61 | ||
Divestiture gain | (88) | ||
Ixempra [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Divestiture proceeds | 13 | 113 | |
Divestiture gain | (88) | ||
Royalties | (11) | (8) | |
Other divestitures [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Divestiture proceeds | 15 | 8 | 70 |
Divestiture gain | $ (15) | $ (48) | $ (28) |
OTHER (INCOME)_EXPENSE (Details
OTHER (INCOME)/EXPENSE (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Nonoperating Income (Expense) [Abstract] | |||
Interest expense | $ 167 | $ 184 | $ 203 |
Investment income | (105) | (101) | (101) |
Provision for restructuring | 109 | 118 | 163 |
Litigation and other settlements | 47 | 159 | 23 |
Equity in net income of affiliates | (77) | (83) | (107) |
Divestiture gains | (576) | (196) | (564) |
Royalties and licensing income | (719) | (383) | (283) |
Transition and other service fees | (238) | (122) | (170) |
Pension charges | 91 | 160 | 877 |
Intangible asset impairment | 15 | 13 | 29 |
Equity investment impairment | 45 | ||
Written option adjustment | (123) | 32 | |
Loss on debt redemption | 180 | 45 | |
Other | (44) | 7 | 63 |
Other (income)/expense | (1,285) | $ (187) | $ 210 |
Litigation charge for a contractual dispute | 90 | ||
Foreign exchange loss related to Venezuela | $ 52 |
RESTRUCTURING (Details)
RESTRUCTURING (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related charges incurred to date | $ 90 | ||
Workforce reduction of manufacturing, selling, administrative, and research and development personnel | 1,100 | 1,200 | 1,400 |
Employee termination costs | $ 97 | $ 110 | $ 157 |
Other termination costs | 12 | 8 | 6 |
Provision for restructuring | 109 | 118 | 163 |
Accelerated depreciation | 72 | 104 | 138 |
Asset impairments | 13 | 1 | 13 |
Other shutdown costs | 19 | 10 | |
Total charges | 213 | 233 | 314 |
Restructuring Reserve [Roll Forward] | |||
Liability at January 1 | 125 | 156 | 102 |
Charges | 116 | 133 | 155 |
Change in estimates | (7) | (15) | 8 |
Foreign currency translation | (15) | (2) | |
Spending | (120) | (134) | (107) |
Liability at December 31 | 114 | 125 | 156 |
Minimum [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected restructuring and related charges | $ 1,500 | ||
Cash outlays percentage | 40.00% | ||
Maximum [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected restructuring and related charges | $ 2,000 | ||
Cash outlays percentage | 50.00% | ||
Cost of products sold [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Total charges | $ 21 | 84 | 151 |
Research and development [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Total charges | 83 | 31 | |
Other (income)/expense [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Total charges | $ 109 | $ 118 | $ 163 |
INCOME TAXES (Provision for Inc
INCOME TAXES (Provision for Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
U.S. Current Income Tax Expense | $ 1,144 | $ 337 | $ 334 |
Non-U.S. Current Income Tax Expense | 468 | 456 | 560 |
Total Current Income Tax Expense | 1,612 | 793 | 894 |
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
U.S. Deferred Income Tax Expense/(Benefit) | (101) | (394) | (403) |
Non-U.S. Deferred Income Tax Expense/(Benefit) | (103) | 47 | (139) |
Total Deferred Income Tax Expense/(Benefit) | (204) | (347) | (542) |
Provision for Income Taxes | $ 1,408 | $ 446 | $ 352 |
INCOME TAXES (Effective Tax Rat
INCOME TAXES (Effective Tax Rate Reconciliation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | |||
U.S. Earnings/(Loss) before income taxes | $ 3,100 | $ (1,329) | $ (349) |
Non-U.S. Earnings before income taxes | 2,815 | 3,406 | 2,730 |
Earnings Before Income Taxes | 5,915 | 2,077 | 2,381 |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
U.S. statutory rate, Amount | 2,070 | 727 | 833 |
Foreign tax effect of certain operations in Ireland, Puerto Rico and Switzerland | (442) | (535) | (509) |
U.S. tax effect of capital losses, amount | (361) | ||
U.S. Federal valuation allowance release | (29) | (84) | |
U.S. Federal, state and foreign contingent tax matters, Amount | 87 | 56 | 228 |
U.S. Federal research based credits, amount | (144) | (132) | (131) |
Non-tax deductible goodwill related to diabetes divestiture, Amount | 34 | 25 | 210 |
Non-tax deductible U.S. Branded Prescription Drug fee, Amount | 52 | 44 | 84 |
Non-tax deductible research and development charge, Amount | 100 | 369 | 52 |
Puerto Rico excise tax, amount | (131) | (55) | (28) |
Domestic manufacturing deduction, amount | (122) | (17) | |
State and local taxes (net of valuation allowance), amount | 23 | 16 | 20 |
Foreign and other, Amount | (90) | 32 | (46) |
Provision for Income Taxes | 1,408 | $ 446 | 352 |
Undistributed Earnings of Foreign Subsidiaries | $ 25,700 | ||
Transfer pricing reserves | $ 123 | ||
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
U.S. statutory income tax rate | 35.00% | 35.00% | 35.00% |
Foreign tax effect of certain operations in Ireland, Puerto Rico and Switzerland, Rate | (7.50%) | (25.80%) | (21.40%) |
U.S. tax effect of capital losses, Rate | (15.20%) | ||
Valuation allowance release percent | (0.50%) | (4.00%) | |
U.S. Federal, state and foreign contingent tax matters, Rate | 1.50% | 2.70% | 9.60% |
U.S. Federal research based credits, Rate | (2.40%) | (6.40%) | (5.40%) |
Non-tax deductible goodwill related to diabetes divestiture, Rate | 0.60% | 1.20% | 8.80% |
Non-tax deductible U.S. Branded Prescription Drug Fee, Rate | 0.90% | 2.10% | 3.50% |
Non-tax deductible research and development charge, Rate | 1.70% | 17.80% | 2.20% |
Puerto Rico excise tax, Rate | (2.20%) | (2.70%) | (1.20%) |
Domestic manufacturing deduction, Percent | (2.10%) | (0.80%) | |
State and local taxes (net of valuation allowance), Rate | 0.40% | 0.80% | 0.80% |
Foreign and other, Rate | (1.60%) | 1.60% | (1.90%) |
Effective income tax/(benefit) rate | 23.80% | 21.50% | 14.80% |
INCOME TAXES (Deferred Taxes an
INCOME TAXES (Deferred Taxes and Valuation Allowance) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Components of Deferred Tax Assets [Abstract] | |||
Foreign net operating loss carryforwards | $ 2,945 | $ 3,090 | |
U.S. capital loss carryforwards | 4 | 39 | |
State net operating loss and credit carryforwards | 114 | 324 | |
U.S. Federal net operating loss and credit carryforwards | 156 | 173 | |
Deferred income | 764 | 1,009 | |
Milestones payments and license fees | 534 | 560 | |
Pension and postretirement benefits | 358 | 462 | |
Intercompany profit and other inventory items | 1,241 | 607 | |
Other foreign deferred tax assets | 188 | 172 | |
Share-based compensation | 114 | 122 | |
Legal and other settlements | 5 | 63 | |
Repatriation of foreign earnings | 12 | (1) | |
Internal transfer of intellectual property | 629 | 635 | |
Other | 287 | 337 | |
Total deferred tax assets | 7,351 | 7,592 | |
Total deferred tax assets, net | 4,273 | 4,058 | |
Components of Deferred Tax Liabilities [Abstract] | |||
Depreciation | (125) | (105) | |
Acquired intangible assets | (344) | (338) | |
Goodwill and other | (855) | (802) | |
Total deferred tax liabilities | (1,324) | (1,245) | |
Deferred tax assets, net | 2,949 | 2,813 | |
Deferred Tax Assets, Net, Classification [Abstract] | |||
Deferred income taxes, noncurrent | 2,996 | 2,844 | |
Income taxes payable, noncurrent | (47) | (31) | |
Total | 2,949 | 2,813 | |
Operating Loss Carryforwards [Line Items] | |||
Prepaid taxes for internal transfers of intellectual property | 372 | 484 | |
Valuation Allowance [Line Items] | |||
Valuation allowance | (3,078) | (3,534) | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | 122 | 93 | $ 89 |
Provision | 1,613 | 1,059 | 773 |
Utilization | (1,561) | (1,030) | (769) |
Balance at end of year | 174 | 122 | 93 |
Valuation Allowance of Deferred Tax Assets [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | 3,534 | 4,259 | 4,623 |
Provision | 39 | 71 | 140 |
Utilization | (355) | (436) | (109) |
Foreign currency translation | (142) | (366) | (395) |
Acquisitions | 2 | 6 | |
Balance at end of year | 3,078 | $ 3,534 | $ 4,259 |
Foreign Net Operating Loss And Tax Credit Carryforwards [Member] | |||
Valuation Allowance [Line Items] | |||
Valuation allowance | (2,894) | ||
State Net Operating Loss And Tax Credit Carryforwards [Member] | |||
Valuation Allowance [Line Items] | |||
Valuation allowance | (101) | ||
US Federal Net Operating Loss Carryforwards [Member] | |||
Valuation Allowance [Line Items] | |||
Valuation allowance | (11) | ||
Other US Federal [Member] | |||
Valuation Allowance [Line Items] | |||
Valuation allowance | (72) | ||
Domestic Tax Authority [Member] | |||
Components of Deferred Tax Assets [Abstract] | |||
Net operating loss carryforwards | 368 | ||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | $ 368 |
INCOME TAXES INCOME TAXES (Narr
INCOME TAXES INCOME TAXES (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Income tax payments | $ 2,041 | $ 577 | $ 544 |
Current tax benefit realized as a result of stock related compensation credited to capital in excess of par value of stock | $ 92 | $ 147 | $ 131 |
INCOME TAXES (Unrecognized Tax
INCOME TAXES (Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Unrecognized tax benefits that would impact effective tax rate | $ 854 | $ 671 | $ 668 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | 944 | 934 | 756 |
Gross additions to tax positions related to current year | 49 | 52 | 106 |
Gross additions to tax positions related to prior years | 49 | 56 | 218 |
Gross additions to tax positions assumed in acquisitions | 1 | 1 | |
Gross reductions to tax positions related to prior years | (22) | (34) | (57) |
Settlements | (13) | (46) | (65) |
Reductions to tax positions related to lapse of statute | (4) | (9) | (12) |
Cumulative translation adjustment | (9) | (10) | (12) |
Balance at end of year | 995 | 944 | 934 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued [Abstract] | |||
Accrued interest | 112 | 93 | 96 |
Accrued penalties | 17 | 16 | 17 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense [Abstract] | |||
Interest expense | 22 | 2 | 27 |
Penalty expense/(benefit) | 4 | $ 1 | $ (7) |
Minimum [Member] | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Estimated decrease in total amount of unrecognized tax benefits | 255 | ||
Maximum [Member] | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Estimated decrease in total amount of unrecognized tax benefits | $ 315 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |||||||||||
Net Earnings Attributable to BMS | $ 894 | $ 1,202 | $ 1,166 | $ 1,195 | $ (197) | $ 706 | $ (130) | $ 1,186 | $ 4,457 | $ 1,565 | $ 2,004 |
Weighted-average common shares outstanding - basic | 1,671 | 1,667 | 1,657 | ||||||||
Contingently convertible debt common stock equivalents | 1 | ||||||||||
Incremental shares attributable to share-based compensation plans | 9 | 12 | 12 | ||||||||
Weighted-average common shares outstanding - diluted | 1,680 | 1,679 | 1,670 | ||||||||
Earnings per Share - Basic | $ 0.53 | $ 0.72 | $ 0.70 | $ 0.72 | $ (0.12) | $ 0.42 | $ (0.08) | $ 0.71 | $ 2.67 | $ 0.94 | $ 1.21 |
Earnings per Share - Diluted | $ 0.53 | $ 0.72 | $ 0.69 | $ 0.71 | $ (0.12) | $ 0.42 | $ (0.08) | $ 0.71 | $ 2.65 | $ 0.93 | $ 1.20 |
FINANCIAL INSTRUMENTS AND FAI73
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Fair Value Measurements) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 |
Marketable Securities [Line Items] | ||||||||
Available-for-sale securities, Fair value | $ 4,748 | $ 6,502 | ||||||
Marketable securities, Fair value | 4,832 | $ 5,163 | $ 4,998 | $ 5,352 | 6,545 | $ 6,065 | $ 5,909 | $ 5,592 |
Fair Value Level 1 [Member] | Equity investments [Member] | ||||||||
Marketable Securities [Line Items] | ||||||||
Available-for-sale securities, Fair value | 24 | 60 | ||||||
Fair Value Level 2 [Member] | ||||||||
Marketable Securities [Line Items] | ||||||||
Cash Equivalents, Fair Value | 3,532 | 1,825 | ||||||
Total derivatives at fair value, assets | 75 | 96 | ||||||
Total derivatives at fair value, liabilities | (30) | (18) | ||||||
Fair Value Level 2 [Member] | Certificates of Deposit [Member] | ||||||||
Marketable Securities [Line Items] | ||||||||
Available-for-sale securities, Fair value | 27 | 804 | ||||||
Fair Value Level 2 [Member] | Commercial Paper [Member] | ||||||||
Marketable Securities [Line Items] | ||||||||
Available-for-sale securities, Fair value | 750 | |||||||
Fair Value Level 2 [Member] | Corporate Debt Securities [Member] | ||||||||
Marketable Securities [Line Items] | ||||||||
Available-for-sale securities, Fair value | 3,947 | 5,638 | ||||||
Fair Value Level 2 [Member] | Equity Funds [Member] | ||||||||
Marketable Securities [Line Items] | ||||||||
Marketable securities, Fair value | 101 | 92 | ||||||
Fair Value Level 2 [Member] | Fixed Income Funds [Member] | ||||||||
Marketable Securities [Line Items] | ||||||||
Marketable securities, Fair value | $ 7 | $ 11 |
FINANCIAL INSTRUMENTS AND FAI74
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Available-for-Sale) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Marketable Securities, Amortized Cost | $ 4,753 | $ 6,524 | ||||||
Marketable Securities, Unrealized Gain in Accumulated OCI | 10 | 25 | ||||||
Marketable Securities, Gross Unrealized Loss in Accumulated OCI | (15) | (47) | ||||||
Available-for-sale securities | 4,748 | 6,502 | ||||||
Total securities | 4,856 | 6,605 | ||||||
Marketable securities | 4,832 | $ 5,163 | $ 4,998 | $ 5,352 | 6,545 | $ 6,065 | $ 5,909 | $ 5,592 |
Current marketable securities [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Total securities | 2,113 | 1,885 | ||||||
Non-current marketable securities [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Total securities | 2,719 | 4,660 | ||||||
Other assets [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Total securities | 24 | 60 | ||||||
Certificates of Deposit [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Marketable Securities, Amortized Cost | 27 | 804 | ||||||
Available-for-sale securities | 27 | 804 | ||||||
Commercial Paper [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Marketable Securities, Amortized Cost | 750 | |||||||
Available-for-sale securities | 750 | |||||||
Corporate Debt Securities [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Marketable Securities, Amortized Cost | 3,945 | 5,646 | ||||||
Marketable Securities, Unrealized Gain in Accumulated OCI | 10 | 15 | ||||||
Marketable Securities, Gross Unrealized Loss in Accumulated OCI | (8) | (23) | ||||||
Available-for-sale securities | 3,947 | 5,638 | ||||||
Equity investments [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Marketable Securities, Amortized Cost | 31 | 74 | ||||||
Marketable Securities, Unrealized Gain in Accumulated OCI | 10 | |||||||
Marketable Securities, Gross Unrealized Loss in Accumulated OCI | (7) | (24) | ||||||
Available-for-sale securities | 24 | 60 | ||||||
Equity and fixed income funds [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Marketable securities | $ 108 | $ 103 |
FINANCIAL INSTRUMENTS AND FAI75
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Derivatives and Hedging) (Details) € in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2016USD ($) | Dec. 31, 2016EUR (€) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Derivatives and Hedging [Line Items] | ||||
Notional amount of U.S. dollar interest rate contracts maturing March 2017 | $ 750 | |||
Period of reclassification to earnings, cash flow hedges | 2 | 2 | ||
The period, in days, after a forecasted transaction after which cash flow hedge accounting is discontinued | 60 | 60 | ||
Notional amount of nonderivative non-U.S. dollar borrowings designated as net investment hedges | $ 993 | € 950 | ||
Effective portion of foreign exchange gains | $ 48 | $ 80 | $ 79 | |
LIBOR | 0.70% | |||
Variable rate debt, Lower range of basis point spread | (0.10%) | |||
Variable rate debt, Higher range of basis point spread | 4.60% | |||
Executed interest rate swaps, Notional amount | $ 255 | 200 | ||
Terminated interest rate swaps, Notional amount | 500 | 147 | 426 | |
Terminated interest rate swaps, Total proceeds including accrued interest | 43 | 28 | $ 119 | |
Euro [Member] | ||||
Derivatives and Hedging [Line Items] | ||||
Notional amount of derivatives | 617 | |||
Japanese Yen [Member] | ||||
Derivatives and Hedging [Line Items] | ||||
Notional amount of derivatives | 321 | |||
Fair Value Level 2 [Member] | ||||
Derivatives and Hedging [Line Items] | ||||
Total derivatives at fair value, assets | 75 | 96 | ||
Total derivatives at fair value, liabilities | (30) | (18) | ||
Interest Rate Swap [Member] | Designated As Hedging Instrument [Member] | Prepaid expenses and other [Member] | ||||
Derivatives and Hedging [Line Items] | ||||
Notional amount of derivatives | 250 | |||
Interest Rate Swap [Member] | Designated As Hedging Instrument [Member] | Other assets [Member] | ||||
Derivatives and Hedging [Line Items] | ||||
Notional amount of derivatives | 500 | 1,100 | ||
Total derivatives at fair value, assets | 1 | 31 | ||
Interest Rate Swap [Member] | Designated As Hedging Instrument [Member] | Accrued liabilities [Member] | ||||
Derivatives and Hedging [Line Items] | ||||
Notional amount of derivatives | 500 | |||
Interest Rate Swap [Member] | Designated As Hedging Instrument [Member] | Pension and other liabilities [Member] | ||||
Derivatives and Hedging [Line Items] | ||||
Notional amount of derivatives | 255 | 650 | ||
Total derivatives at fair value, liabilities | (3) | (1) | ||
Forward Starting Interest Rate Swap Contracts [Member] | Designated As Hedging Instrument [Member] | Prepaid expenses and other [Member] | ||||
Derivatives and Hedging [Line Items] | ||||
Notional amount of derivatives | 500 | |||
Total derivatives at fair value, assets | 8 | |||
Forward Starting Interest Rate Swap Contracts [Member] | Designated As Hedging Instrument [Member] | Other assets [Member] | ||||
Derivatives and Hedging [Line Items] | ||||
Notional amount of derivatives | 500 | |||
Total derivatives at fair value, assets | 15 | |||
Forward Starting Interest Rate Swap Contracts [Member] | Designated As Hedging Instrument [Member] | Accrued liabilities [Member] | ||||
Derivatives and Hedging [Line Items] | ||||
Notional amount of derivatives | 250 | |||
Total derivatives at fair value, liabilities | (11) | |||
Forward Starting Interest Rate Swap Contracts [Member] | Designated As Hedging Instrument [Member] | Pension and other liabilities [Member] | ||||
Derivatives and Hedging [Line Items] | ||||
Notional amount of derivatives | 250 | |||
Total derivatives at fair value, liabilities | (7) | |||
Foreign Exchange Forward [Member] | Designated As Hedging Instrument [Member] | Prepaid expenses and other [Member] | ||||
Derivatives and Hedging [Line Items] | ||||
Notional amount of derivatives | 967 | 1,016 | ||
Total derivatives at fair value, assets | 66 | 50 | ||
Foreign Exchange Forward [Member] | Designated As Hedging Instrument [Member] | Accrued liabilities [Member] | ||||
Derivatives and Hedging [Line Items] | ||||
Notional amount of derivatives | 198 | 342 | ||
Total derivatives at fair value, liabilities | (9) | (5) | ||
Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member] | Prepaid expenses and other [Member] | ||||
Derivatives and Hedging [Line Items] | ||||
Notional amount of derivatives | 106 | |||
Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member] | Accrued liabilities [Member] | ||||
Derivatives and Hedging [Line Items] | ||||
Notional amount of derivatives | 291 | 445 | ||
Total derivatives at fair value, liabilities | (4) | $ (5) | ||
Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member] | Pension and other liabilities [Member] | ||||
Derivatives and Hedging [Line Items] | ||||
Notional amount of derivatives | 69 | |||
Total derivatives at fair value, liabilities | $ (3) |
FINANCIAL INSTRUMENTS AND FAI76
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Debt Obligations) (Details) $ in Millions | 12 Months Ended | ||||||||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | |
Line of Credit Facility [Line Items] | |||||||||
Number of Revolving Credit Facilities | 2 | ||||||||
Debt Instrument [Line Items] | |||||||||
Bank drafts and short-term borrowings | $ 243 | $ 139 | |||||||
Current portion of long-term debt | 749 | ||||||||
Short-term borrowings | 992 | 139 | |||||||
The average amount of commercial paper outstanding | $ 254 | ||||||||
The weighted average interest rate of commercial paper | 0.16% | ||||||||
Maximum month end amount of commercial paper borrowings outstanding | $ 755 | ||||||||
Principal value | 6,261 | 6,339 | |||||||
Adjustments to Principal Value, Fair value of interest rate swaps | (2) | 30 | |||||||
Adjustments to Principal Value, Unamortized basis adjustment from swap terminations | 287 | 272 | |||||||
Adjustments to Principal Value, Unamortized bond discounts and issuance costs | (81) | (91) | |||||||
Long-term debt Total | 6,465 | 6,550 | $ 6,585 | $ 6,581 | $ 6,593 | $ 6,632 | $ 6,615 | $ 7,127 | |
Long-term debt | 5,716 | 6,550 | |||||||
Long-term debt, Fair value | 6,932 | 6,909 | |||||||
Proceeds from Issuance of Long-term Debt | 1,268 | ||||||||
Repayments of long-term debt | 15 | 1,957 | $ 676 | ||||||
Interest payments | 191 | 205 | 238 | ||||||
Financial guarantees in the form of stand-by letters of credit and perfomance bonds | 812 | ||||||||
Extinguishment of Debt, Principal Value | 1,624 | 582 | |||||||
Extinguishment of Debt, Carrying Value | 1,795 | 633 | |||||||
Extinguishment of Debt, Repurchase Price | 1,957 | 676 | |||||||
Extinguishment of Debt, Notional amount of interest rate swaps terminated | 735 | 500 | |||||||
Extinguishment of Debt, Swap Termination Proceeds/(Payments) | 11 | 4 | |||||||
Extinguishment Of Debt, Total loss | 180 | $ 45 | |||||||
Euro Member Countries, Euro | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal value | 1,150 | ||||||||
Proceeds from Issuance of Long-term Debt | 1,133 | ||||||||
Derivative Liability, Notional Amount | 500 | ||||||||
Unrealized gain/(loss) from termination of forward interest rate swap | (16) | ||||||||
United States of America, Dollars | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal value | 1,286 | ||||||||
Proceeds from Issuance of Long-term Debt | 1,268 | ||||||||
Derivative Liability, Notional Amount | 559 | ||||||||
Unrealized gain/(loss) from termination of forward interest rate swap | (18) | ||||||||
Notes Due 2017 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal value | 750 | 750 | |||||||
Notes Due 2019 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal value | 500 | 500 | |||||||
Notes Due 2022 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal value | 750 | 750 | |||||||
Notes Due 2023 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal value | 302 | 302 | |||||||
Notes Due 2023 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal value | 500 | 500 | |||||||
Euro notes due 2025 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal value | 601 | 630 | |||||||
Euro notes due 2025 [Member] | Euro Member Countries, Euro | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal value | 575 | ||||||||
Euro notes due 2025 [Member] | United States of America, Dollars | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal value | 643 | ||||||||
Notes Due 2026 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal value | 256 | 256 | |||||||
Euro Notes due 2035 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal value | 601 | 630 | |||||||
Euro Notes due 2035 [Member] | Euro Member Countries, Euro | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal value | 575 | ||||||||
Euro Notes due 2035 [Member] | United States of America, Dollars | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal value | 643 | ||||||||
Notes Due 2036 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal value | 404 | 404 | |||||||
Notes Due 2038 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal value | 278 | 278 | |||||||
Notes Due 2042 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal value | 500 | 500 | |||||||
Notes Due 2044 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal value | 500 | 500 | |||||||
Notes Due 2097 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal value | 260 | 260 | |||||||
Other Debt Maturing 2017 To 2030 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal value | 59 | $ 79 | |||||||
Revolving Credit Facility [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,500 |
RECEIVABLES (Details)
RECEIVABLES (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Accounts Receivable, Net [Abstract] | |||
Trade receivables | $ 3,948 | $ 3,070 | |
Less charge-backs and cash discounts | (126) | (97) | |
Less allowances | (48) | (25) | |
Net trade receivables | 3,774 | 2,948 | |
Alliance receivables | 903 | 958 | |
Prepaid and refundable income taxes | 627 | 182 | |
Other | 239 | 211 | |
Receivables | 5,543 | 4,299 | |
Receivables sold on a nonrecourse basis | $ 618 | $ 476 | $ 812 |
The number of the largest pharmaceutical wholesalers in the U.S. | 3 | ||
Percentage of aggregate total trade receivables due from three pharmaceutical wholesalers | 66.00% | 53.00% | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | $ 122 | $ 93 | 89 |
Provision | 1,613 | 1,059 | 773 |
Utilization | (1,561) | (1,030) | (769) |
Balance at end of year | $ 174 | $ 122 | $ 93 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Inventory, Net [Abstract] | ||
Finished goods | $ 310 | $ 381 |
Work in process | 988 | 868 |
Raw and packaging materials | 264 | 199 |
Total inventories | 1,562 | 1,448 |
Inventories | 1,241 | 1,221 |
Inventories - other assets | 321 | 227 |
Inventory pending regulatory approval | $ 54 | $ 85 |
PROPERTY, PLANT AND EQUIPMENT79
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Land | $ 107 | $ 107 | |
Buildings | 4,930 | 4,515 | |
Machinery, equipment and fixtures | 3,287 | 3,347 | |
Construction in progress | 849 | 662 | |
Gross property, plant and equipment | 9,173 | 8,631 | |
Less accumulated depreciation | (4,193) | (4,219) | |
Property, plant and equipment | 4,980 | 4,412 | |
Depreciation expense | 448 | 500 | $ 543 |
Operating lease expense | 145 | $ 140 | $ 140 |
Minimum rental commitments next five years | 100 | ||
Minimum rental commitments for non-cancelable operating leases, Later years | $ 300 |
GOODWILL AND OTHER INTANGIBLE80
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Goodwill and Intangible Assets [Line Items] | |||
Goodwill | $ 6,875 | $ 6,881 | |
Total other intangible assets, gross | 4,469 | 4,353 | |
Other intangible assets accumulated amortization | (3,084) | (2,934) | |
Other intangible assets | 1,385 | 1,419 | |
Amortization of intangible assets | 178 | 183 | $ 286 |
Impairment of other intangible assets | 33 | 181 | 380 |
Future estimated amortization, 2017 | 220 | ||
Future estimated amortization, 2018 | 200 | ||
Future estimated amortization, 2019 | 170 | ||
Future estimated amortization, 2020 | 130 | ||
Future estimated amortization, 2021 | 100 | ||
Licenses [Member] | |||
Schedule of Goodwill and Intangible Assets [Line Items] | |||
Finite-lived intangible assets, net | 564 | 574 | |
Developed technology rights [Member] | |||
Schedule of Goodwill and Intangible Assets [Line Items] | |||
Finite-lived intangible assets, net | 2,357 | 2,357 | |
Capitalized Software [Member] | |||
Schedule of Goodwill and Intangible Assets [Line Items] | |||
Finite-lived intangible assets, net | 1,441 | 1,302 | |
In-process research and development [Member] | |||
Schedule of Goodwill and Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets acquired | $ 107 | 120 | |
BMS-986020 [Member] | |||
Schedule of Goodwill and Intangible Assets [Line Items] | |||
Impairment of indefinite-lived intangible assets | $ 160 | ||
Peginterferon lambda [Member] | |||
Schedule of Goodwill and Intangible Assets [Line Items] | |||
Impairment of indefinite-lived intangible assets | $ 310 | ||
Minimum [Member] | Licenses [Member] | |||
Schedule of Goodwill and Intangible Assets [Line Items] | |||
Useful life of intangible asset | 5 years | ||
Minimum [Member] | Developed technology rights [Member] | |||
Schedule of Goodwill and Intangible Assets [Line Items] | |||
Useful life of intangible asset | 9 years | ||
Minimum [Member] | Capitalized Software [Member] | |||
Schedule of Goodwill and Intangible Assets [Line Items] | |||
Useful life of intangible asset | 3 years | ||
Maximum [Member] | Licenses [Member] | |||
Schedule of Goodwill and Intangible Assets [Line Items] | |||
Useful life of intangible asset | 15 years | ||
Maximum [Member] | Developed technology rights [Member] | |||
Schedule of Goodwill and Intangible Assets [Line Items] | |||
Useful life of intangible asset | 15 years | ||
Maximum [Member] | Capitalized Software [Member] | |||
Schedule of Goodwill and Intangible Assets [Line Items] | |||
Useful life of intangible asset | 10 years |
ACCRUED LIABILITIES (Details)
ACCRUED LIABILITIES (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Accrued Liabilities, Current [Abstract] | ||
Accrued rebates and returns | $ 1,680 | $ 1,324 |
Employee compensation and benefits | 818 | 904 |
Accrued research and development | 718 | 553 |
Dividends payable | 660 | 655 |
Royalties | 246 | 161 |
Branded Prescription Drug Fee | 234 | 112 |
Restructuring | 90 | 89 |
Pension and postretirement benefits | 44 | 47 |
Litigation and other settlements | 43 | 189 |
Other | 738 | 704 |
Total accrued liabilities | $ 5,271 | $ 4,738 |
EQUITY (Changes in Equity) (Det
EQUITY (Changes in Equity) (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Equity [Line Items] | |||||||||||
Common Stock, Value, Issued, Balance at January 1, | $ 221 | $ 221 | |||||||||
Common Stock, Value, Issued, Balance at December 31, | $ 221 | $ 221 | 221 | $ 221 | |||||||
Capital in Excess of Par Value of Stock, Balance at January 1, | 1,459 | 1,459 | |||||||||
Capital in Excess of Par Value of Stock, Balance at December 31, | 1,725 | 1,459 | 1,725 | 1,459 | |||||||
Accumulated Other Comprehensive Loss, Balance at January 1 | (2,468) | (2,468) | |||||||||
Other comprehensive loss | (35) | (43) | $ (284) | ||||||||
Accumulated Other Comprehensive Loss, Balance at December 31 | (2,503) | (2,468) | (2,503) | (2,468) | |||||||
Retained Earnings, Balance at January 1, | 31,613 | 31,613 | |||||||||
Net Earnings/(Loss) Attributable to BMS | 894 | $ 1,202 | $ 1,166 | $ 1,195 | (197) | $ 706 | $ (130) | $ 1,186 | 4,457 | 1,565 | $ 2,004 |
Retained Earnings, Balance at December 31, | $ 33,513 | $ 31,613 | $ 33,513 | $ 31,613 | |||||||
Treasury Stock, Shares, Balance at January 1, | 539 | 539 | |||||||||
Treasury Stock, Shares, Balance at December 31, | 536 | 539 | 536 | 539 | |||||||
Cost of Treasury Stock, Balance at January 1, | $ (16,559) | $ (16,559) | |||||||||
Cost of Treasury Stock, Balance at December 31, | $ (16,779) | $ (16,559) | (16,779) | $ (16,559) | |||||||
Noncontrolling interest, Balance at January 1, | $ 158 | 158 | |||||||||
Noncontrolling interest, Balance at December 31, | 170 | $ 158 | 170 | $ 158 | |||||||
New share repurchase program, Authorized Amount | $ 3,000 | $ 3,000 | |||||||||
Common Stock [Member] | |||||||||||
Equity [Line Items] | |||||||||||
Common Stock, Shares Issued, Balance at January 1, | 2,208 | 2,208 | 2,208 | 2,208 | 2,208 | ||||||
Common Stock, Shares Issued, Balance at December 31, | 2,208 | 2,208 | 2,208 | 2,208 | 2,208 | ||||||
Common Stock, Value, Issued, Balance at January 1, | $ 221 | $ 221 | $ 221 | $ 221 | $ 221 | ||||||
Common Stock, Value, Issued, Balance at December 31, | $ 221 | $ 221 | 221 | 221 | 221 | ||||||
Capital in Excess of Par Value of Stock [Member] | |||||||||||
Equity [Line Items] | |||||||||||
Capital in Excess of Par Value of Stock, Balance at January 1, | 1,459 | 1,507 | 1,459 | 1,507 | 1,922 | ||||||
Employee stock compensation plans, Capital in Excess of Par Value of Stock | 266 | (48) | (393) | ||||||||
Debt conversion, Capital in Excess of Par Value of Stock | (22) | ||||||||||
Capital in Excess of Par Value of Stock, Balance at December 31, | 1,725 | 1,459 | 1,725 | 1,459 | 1,507 | ||||||
Accumulated Other Comprehensive Loss [Member] | |||||||||||
Equity [Line Items] | |||||||||||
Accumulated Other Comprehensive Loss, Balance at January 1 | (2,468) | (2,425) | (2,468) | (2,425) | (2,141) | ||||||
Other comprehensive loss | (35) | (43) | (284) | ||||||||
Accumulated Other Comprehensive Loss, Balance at December 31 | (2,503) | (2,468) | (2,503) | (2,468) | (2,425) | ||||||
Retained Earnings [Member] | |||||||||||
Equity [Line Items] | |||||||||||
Retained Earnings, Balance at January 1, | $ 31,613 | $ 32,541 | 31,613 | 32,541 | 32,952 | ||||||
Net Earnings/(Loss) Attributable to BMS | 4,457 | 1,565 | 2,004 | ||||||||
Cash dividends declared | (2,557) | (2,493) | (2,415) | ||||||||
Retained Earnings, Balance at December 31, | $ 33,513 | $ 31,613 | $ 33,513 | $ 31,613 | $ 32,541 | ||||||
Treasury Stock [Member] | |||||||||||
Equity [Line Items] | |||||||||||
Treasury Stock, Shares, Balance at January 1, | 539 | 547 | 539 | 547 | 559 | ||||||
Stock repurchase program, Treasury Stock | 4 | ||||||||||
Employee stock compensation plans, Shares | (7) | (8) | (11) | ||||||||
Debt conversion, Shares | (1) | ||||||||||
Treasury Stock, Shares, Balance at December 31, | 536 | 539 | 536 | 539 | 547 | ||||||
Cost of Treasury Stock, Balance at January 1, | $ (16,559) | $ (16,992) | $ (16,559) | $ (16,992) | $ (17,800) | ||||||
Stock repurchase program, Cost of Treasury Stock | (231) | ||||||||||
Employee stock compensation plans, Cost | 11 | 431 | 755 | ||||||||
Debt conversion, Cost | 2 | 53 | |||||||||
Cost of Treasury Stock, Balance at December 31, | $ (16,779) | $ (16,559) | (16,779) | (16,559) | (16,992) | ||||||
Noncontrolling Interest [Member] | |||||||||||
Equity [Line Items] | |||||||||||
Noncontrolling interest, Balance at January 1, | $ 158 | $ 131 | 158 | 131 | 82 | ||||||
Net earnings attributable to noncontrolling interest | 50 | 84 | 39 | ||||||||
Variable interest entity | 59 | ||||||||||
Distributions | (38) | (57) | (49) | ||||||||
Noncontrolling interest, Balance at December 31, | 170 | $ 158 | 170 | $ 158 | $ 131 | ||||||
2017 ASR [Member] | |||||||||||
Equity [Line Items] | |||||||||||
New share repurchase program, Authorized Amount | $ 2,000 | $ 2,000 |
EQUITY (Accumulated balances re
EQUITY (Accumulated balances related to each component of other comprehensive income/(loss)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Equity [Abstract] | |||
Derivatives qualifying as cash flow hedges | $ 38 | $ 34 | |
Pension and other postretirement benefits | (2,097) | (2,080) | |
Available-for-sale securities | (7) | (23) | |
Foreign currency translation | (437) | (399) | |
Accumulated other comprehensive loss | (2,503) | (2,468) | |
Other Comprehensive Income (Loss), before Tax [Abstract] | |||
Derivatives qualifying as cash flow hedges - Unrealized gains/(losses), Pre-tax | (5) | 59 | $ 139 |
Derivatives qualifying as cash flow hedges - Reclassified to net earnings, Pre-tax | 12 | (130) | (41) |
Derivatives qualifying as cash flow hedges, Pre-tax | 7 | (71) | 98 |
Pension and postretirement benefits - Actuarial gains/(losses), Pre-tax | (126) | (88) | (1,414) |
Pension and postretirement benefits - Amortization, Pre-tax | 78 | 85 | 104 |
Pension and postretirement benefits - Settlements and curtailments, Pre-tax | 91 | 160 | 867 |
Pension and other postretirement benefits, Pre-tax | 43 | 157 | (443) |
Available-for-sale securities - Unrealized gains/(losses), Pre-tax | (12) | (71) | 10 |
Available-for-sale securities - Realized (gains)/losses, Pre-tax | 29 | 3 | (1) |
Available-for-sale securities, Pre-tax | 17 | (68) | 9 |
Foreign currency translation, Pre-tax | (33) | (17) | (8) |
Other Comprehensive Income/(Loss), before Tax | 34 | 1 | (344) |
Other Comprehensive Income (Loss), Tax, Parenthetical Disclosures [Abstract] | |||
Derivatives qualifying as cash flow hedges - Unrealized gains/(losses), Tax | (22) | (45) | |
Derivatives qualifying as cash flow hedges - Reclassified to net earnings, Tax | (3) | 42 | 16 |
Derivatives qualifying as cash flow hedges, Tax | (3) | 20 | (29) |
Pension and other postretirement benefits - Actuarial gains/(losses), Tax | (3) | 27 | 464 |
Pension and other postretirement benefits - Amortization, Tax | (25) | (28) | (37) |
Pension and other postretirement benefits - Settlements and curtailments, Tax | (32) | (55) | (308) |
Pension and other postretirement benefits, Tax | (60) | (56) | 119 |
Available-for-sale securities - Unrealized gains/(losses), Tax | (1) | 14 | (6) |
Available-for-sale securities - Realized (gains)/losses, Tax | (1) | 14 | (6) |
Foreign currency translation Adjustment, Tax | (5) | (22) | (24) |
Other comprehensive income/(loss), Tax | (69) | (44) | 60 |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Derivatives qualifying as cash flow hedges - Unrealized holding gains/(losses), After tax | (5) | 37 | 94 |
Derivatives qualifying as cash flow hedges - Reclassified to net earnings After tax | 9 | (88) | (25) |
Derivatives qualifying as cash flow hedges, After tax | 4 | (51) | 69 |
Pension and other postretirement benefits - Actuarial gains/(losses), After tax | (129) | (61) | (950) |
Pension and other postretirement benefits - Amortization, After tax | 53 | 57 | 67 |
Pension and other postretirement benefits - Settlements and curtailments | 59 | 105 | 559 |
Pension and other postretirement benefits, After tax | (17) | 101 | (324) |
Available for sale securities - Unrealized gains/(losses), After tax | (13) | (57) | 4 |
Available for sale securities - Realized (gains)/losses, After tax | 29 | 3 | (1) |
Available-for-sale securities, After tax | 16 | (54) | 3 |
Foreign currency translation, After tax | (38) | (39) | (32) |
Total Other Comprehensive Income/(Loss) | $ (35) | $ (43) | $ (284) |
PENSION AND POSTRETIREMENT BE84
PENSION AND POSTRETIREMENT BENEFIT PLANS (Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Pension, Postretirement And Postemployment Liabilities Statement [Line Items] | |||
Percentage of plan assets attributable to the principal defined benefit pension plan | 66.00% | ||
Percentage of plan obligations attributable to the principal defined benefit pension plan | 61.00% | ||
Pension Plans, Defined Benefit [Member] | |||
Compensation and Retirement Disclosure [Abstract] | |||
Discount rate used to determine benefit obligations | 3.50% | 3.80% | |
Pension, Postretirement And Postemployment Liabilities Statement [Line Items] | |||
Service cost - benefits earned during the year | $ 24 | $ 25 | $ 34 |
Interest cost on projected benefit obligation | 192 | 242 | 305 |
Expected return on plan assets | (418) | (405) | (508) |
Amortization of prior service costs | (3) | (3) | (3) |
Amortization of net actuarial (gain)/loss | 84 | 91 | 110 |
Curtailments | (1) | 1 | |
Settlements | 91 | 161 | 866 |
Special termination benefits | 1 | 14 | |
Total net periodic benefit cost/(credit) | (29) | 110 | 819 |
Pension obligation settlement | $ 173 | $ 336 | |
Other Postretirement Benefit Plans, Defined Benefit [Member] | |||
Compensation and Retirement Disclosure [Abstract] | |||
Discount rate used to determine benefit obligations | 3.60% | 3.60% | |
United States Pension Plans | |||
Pension, Postretirement And Postemployment Liabilities Statement [Line Items] | |||
Settlements | 713 | ||
Pension obligation settlement | $ 1,500 |
PENSION AND POSTRETIREMENT BE85
PENSION AND POSTRETIREMENT BENEFIT PLANS (Changes in Defined Benefit and Postretirement Benefit Plan Assets and Obligations) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets | |||
Fair value of plan assets at beginning of year | $ 6,015 | ||
Fair value of plan assets at end of year | 6,162 | $ 6,015 | |
Accrued liabilities | (44) | (47) | |
Accumulated benefit obligation | 6,381 | 6,363 | |
Defined Benefit Plan, Plans with Benefit Obligations in Excess of Plan Assets [Abstract] | |||
Pension plans with projected benefit obligations in excess of plan assets, Projected benefit obligation | 6,195 | 5,310 | |
Pension plans with projected benefit obligations in excess of plan assets, Fair value of plan assets | 5,559 | 4,508 | |
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets [Abstract] | |||
Pension plans with accumulated benefit obligations in excess of plan assets, Accumulated benefit obligation | 5,978 | 5,156 | |
Pension plans with accumulated benefit obligations in excess of plan assets, Fair value of plan assets | 5,380 | 4,386 | |
Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation | |||
Benefit obligations at the beginning of year | 6,418 | 7,068 | |
Service cost - benefits earned during the year | 24 | 25 | $ 34 |
Interest cost on projected benefit obligation | 192 | 242 | 305 |
Settlements | (173) | (336) | |
Actuarial (gains)/losses | 253 | (321) | |
Benefits paid | (109) | (105) | |
Foreign currency and other | (165) | (155) | |
Benefit obligations at the end of the year | 6,440 | 6,418 | 7,068 |
Defined Benefit Plan, Change in Fair Value of Plan Assets | |||
Fair value of plan assets at beginning of year | 5,687 | 6,148 | |
Actual return on plan assets | 513 | (5) | |
Employer contributions | 81 | 118 | |
Settlements | (173) | (336) | |
Benefits paid | (109) | (105) | |
Exchange rate losses | (168) | (133) | |
Fair value of plan assets at end of year | 5,831 | 5,687 | $ 6,148 |
Funded Status | (609) | (731) | |
Other assets | 26 | 71 | |
Accrued liabilities | (35) | (37) | |
Pension and other liabilities | (600) | (765) | |
Net actuarial (gains)/losses | 3,123 | 3,140 | |
Prior service credit | (39) | (39) | |
Total recognized in other comprehensive loss, pre-tax | 3,084 | 3,101 | |
Other Postretirement Benefit Plans, Defined Benefit [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation | |||
Benefit obligations at the beginning of year | 355 | ||
Benefit obligations at the end of the year | 308 | 355 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets | |||
Fair value of plan assets at beginning of year | 328 | ||
Fair value of plan assets at end of year | $ 331 | $ 328 |
PENSION AND POSTRETIREMENT BE86
PENSION AND POSTRETIREMENT BENEFIT PLANS (Actuarial Assumptions) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Pension, Postretirement And Postemployment Liabilities Statement [Line Items] | |||
Percentage of the higher of the market-related value or projected benefit obligation corridor not amortized | 10.00% | ||
Net actuarial loss and prior service cost expected to be amortized from accumulated other comprehensive income into net periodic benefit cost during 2016 | $ 75 | ||
United States Postretirement Benefit Plan of US Entity, Defined Benefit [Member] | |||
Pension, Postretirement And Postemployment Liabilities Statement [Line Items] | |||
Expected weighted-average remaining lives of plan participants, which is the period over which actuarial gain/loss is amortized | 34 years | ||
Pension Plans, Defined Benefit [Member] | |||
Pension, Postretirement And Postemployment Liabilities Statement [Line Items] | |||
Discount rate used to determine benefit obligations | 3.50% | 3.80% | |
Rate of compensation increase used to determine benefit obligations | 0.50% | 0.50% | |
Discount rate used to determine net periodic benefit cost | 3.80% | 3.60% | 4.20% |
Expected long-term return on plan assets used to determine net periodic benefit cost | 7.20% | 7.20% | 7.60% |
Rate of compensation increase used to determine net periodic benefit cost | 0.50% | 0.80% | 2.30% |
Historical long-term annualized returns for U.S. pension plans, 10 years | 6.10% | 6.70% | 7.90% |
Historical long-term annualized returns for U.S. pension plans, 15 years | 7.10% | 6.00% | 6.40% |
Historical long-term annualized returns for U.S. pension plans, 20 years | 7.70% | 8.10% | 9.30% |
Other Postretirement Benefit Plans, Defined Benefit [Member] | |||
Pension, Postretirement And Postemployment Liabilities Statement [Line Items] | |||
Discount rate used to determine benefit obligations | 3.60% | 3.60% |
PENSION AND POSTRETIREMENT BE87
PENSION AND POSTRETIREMENT BENEFIT PLANS (Fair Value Disclosures) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Pension, Postretirement And Postemployment Liabilities Statement [Line Items] | ||
Plan assets subject to leveling | $ 5,322 | $ 5,199 |
Plan assets measured at NAV | 840 | 816 |
Total plan assets at fair value | $ 6,162 | 6,015 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Percentage of U.S. pension plan equity investments that are actively managed | 90.00% | |
The percentage of employer common stock in total plan assets is less than | 1.00% | |
Equity Securities [Member] | ||
Pension, Postretirement And Postemployment Liabilities Statement [Line Items] | ||
Plan assets subject to leveling | $ 833 | 785 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Target allocation percentage of assets | 43.00% | |
Equity Funds [Member] | ||
Pension, Postretirement And Postemployment Liabilities Statement [Line Items] | ||
Plan assets subject to leveling | $ 1,368 | 1,200 |
Plan assets measured at NAV | 476 | 495 |
Fixed Income Funds [Member] | ||
Pension, Postretirement And Postemployment Liabilities Statement [Line Items] | ||
Plan assets subject to leveling | 804 | 973 |
Corporate Debt Securities [Member] | ||
Pension, Postretirement And Postemployment Liabilities Statement [Line Items] | ||
Plan assets subject to leveling | 1,405 | 1,382 |
U.S. Treasury and Agency Securities [Member] | ||
Pension, Postretirement And Postemployment Liabilities Statement [Line Items] | ||
Plan assets subject to leveling | 536 | 517 |
Short-Term Investment Funds [Member] | ||
Pension, Postretirement And Postemployment Liabilities Statement [Line Items] | ||
Plan assets subject to leveling | 90 | 103 |
Insurance Contracts [Member] | ||
Pension, Postretirement And Postemployment Liabilities Statement [Line Items] | ||
Plan assets subject to leveling | 112 | 115 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value at January 1, Asset | 115 | 119 |
Purchases, sales and settlements, net | (3) | 7 |
Realized gains/(losses) | (11) | |
Fair value at December 31, Asset | 112 | 115 |
Cash and Cash Equivalents [Member] | ||
Pension, Postretirement And Postemployment Liabilities Statement [Line Items] | ||
Plan assets subject to leveling | 81 | 106 |
Other Plan Assets [Member] | ||
Pension, Postretirement And Postemployment Liabilities Statement [Line Items] | ||
Plan assets subject to leveling | 93 | 18 |
Plan assets measured at NAV | 166 | 72 |
Venture Capital and Limited Partnerships [Member] | ||
Pension, Postretirement And Postemployment Liabilities Statement [Line Items] | ||
Plan assets measured at NAV | $ 198 | 249 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Target allocation percentage of assets | 7.00% | |
United States Equity Securities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Target allocation percentage of assets | 13.00% | |
International Equity Securities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Target allocation percentage of assets | 16.00% | |
Global Equity Securities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Target allocation percentage of assets | 14.00% | |
Debt Securities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Target allocation percentage of assets | 50.00% | |
Fair Value Level 1 [Member] | ||
Pension, Postretirement And Postemployment Liabilities Statement [Line Items] | ||
Plan assets subject to leveling | $ 1,052 | 1,596 |
Fair Value Level 1 [Member] | Equity Securities [Member] | ||
Pension, Postretirement And Postemployment Liabilities Statement [Line Items] | ||
Plan assets subject to leveling | 833 | 785 |
Fair Value Level 1 [Member] | Equity Funds [Member] | ||
Pension, Postretirement And Postemployment Liabilities Statement [Line Items] | ||
Plan assets subject to leveling | 138 | 452 |
Fair Value Level 1 [Member] | Fixed Income Funds [Member] | ||
Pension, Postretirement And Postemployment Liabilities Statement [Line Items] | ||
Plan assets subject to leveling | 249 | |
Fair Value Level 1 [Member] | Cash and Cash Equivalents [Member] | ||
Pension, Postretirement And Postemployment Liabilities Statement [Line Items] | ||
Plan assets subject to leveling | 81 | 106 |
Fair Value Level 1 [Member] | Other Plan Assets [Member] | ||
Pension, Postretirement And Postemployment Liabilities Statement [Line Items] | ||
Plan assets subject to leveling | 4 | |
Fair Value Level 2 [Member] | ||
Pension, Postretirement And Postemployment Liabilities Statement [Line Items] | ||
Plan assets subject to leveling | 4,158 | 3,488 |
Fair Value Level 2 [Member] | Equity Funds [Member] | ||
Pension, Postretirement And Postemployment Liabilities Statement [Line Items] | ||
Plan assets subject to leveling | 1,230 | 748 |
Fair Value Level 2 [Member] | Fixed Income Funds [Member] | ||
Pension, Postretirement And Postemployment Liabilities Statement [Line Items] | ||
Plan assets subject to leveling | 804 | 724 |
Fair Value Level 2 [Member] | Corporate Debt Securities [Member] | ||
Pension, Postretirement And Postemployment Liabilities Statement [Line Items] | ||
Plan assets subject to leveling | 1,405 | 1,382 |
Fair Value Level 2 [Member] | U.S. Treasury and Agency Securities [Member] | ||
Pension, Postretirement And Postemployment Liabilities Statement [Line Items] | ||
Plan assets subject to leveling | 536 | 517 |
Fair Value Level 2 [Member] | Short-Term Investment Funds [Member] | ||
Pension, Postretirement And Postemployment Liabilities Statement [Line Items] | ||
Plan assets subject to leveling | 90 | 103 |
Fair Value Level 2 [Member] | Other Plan Assets [Member] | ||
Pension, Postretirement And Postemployment Liabilities Statement [Line Items] | ||
Plan assets subject to leveling | 93 | 14 |
Fair Value Level 3 [Member] | ||
Pension, Postretirement And Postemployment Liabilities Statement [Line Items] | ||
Plan assets subject to leveling | 112 | 115 |
Fair Value Level 3 [Member] | Insurance Contracts [Member] | ||
Pension, Postretirement And Postemployment Liabilities Statement [Line Items] | ||
Plan assets subject to leveling | $ 112 | $ 115 |
PENSION AND POSTRETIREMENT BE88
PENSION AND POSTRETIREMENT BENEFIT PLANS (Estimated Future Benefit Payments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Pension, Postretirement And Postemployment Liabilities Statement [Line Items] | |||
Pension contributions | $ 81 | $ 118 | $ 124 |
Expected future benefit payments, Years 2022-2026 | 1,400 | ||
Defined contribution plan expense | 190 | $ 190 | $ 190 |
Minimum [Member] | |||
Pension, Postretirement And Postemployment Liabilities Statement [Line Items] | |||
Expected future benefit payments range | 250 | ||
Maximum [Member] | |||
Pension, Postretirement And Postemployment Liabilities Statement [Line Items] | |||
Expected future benefit payments range | 400 | ||
Pension Plans, Defined Benefit [Member] | |||
Pension, Postretirement And Postemployment Liabilities Statement [Line Items] | |||
Expected contributions to pension plans | $ 100 |
EMPLOYEE STOCK BENEFIT PLANS (S
EMPLOYEE STOCK BENEFIT PLANS (Stock Based Compensation Expense) (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Apr. 30, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares of common stock reserved for issuance pursuant to stock plans, options, and conversions of preferred stock | 109 | |||
Shares available to be granted for active plans | 106 | |||
Total stock-based compensation expense | $ 205 | $ 235 | $ 213 | |
Deferred tax benefit related to stock-based compensation expense | $ 69 | 77 | 71 | |
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period of stock-based compensation award, in years | 4 years | |||
Maximum contractual term of options | 10 years | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period of stock-based compensation award, in years | 4 years | |||
Total stock-based compensation expense | $ 89 | 82 | 75 | |
Market share units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period of stock-based compensation award, in years | 4 years | |||
Minimum payout factor percentage | 60.00% | |||
Maximum payout factor percentage | 200.00% | |||
Total stock-based compensation expense | $ 37 | 36 | 34 | |
Long-term performance awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 79 | $ 117 | $ 104 |
EMPLOYEE STOCK BENEFIT PLANS 90
EMPLOYEE STOCK BENEFIT PLANS (Stock Based Compensation Activity) (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Stock options, Outstanding balance at January 1, 2016 | 10,327 | ||
Stock options, Exercised | (3,851) | ||
Stock options, Forfeited | (73) | ||
Stock options, Outstanding balance at December 31, 2016 | 6,403 | 10,327 | |
Stock options, Outstanding balance at January 1, 2016, Weighted average exercise price | $ 21.62 | ||
Stock Options, Exercised, Weighted average exercise price | 22.60 | ||
Stock options, Forfeited, Weighted average exercise price | 22.65 | ||
Stock options, Outstanding balance at December 31, 2016, Weighted average exercise price | $ 21.02 | $ 21.62 | |
Vested or Expected to Vest, Number of Options Outstanding | 6,403 | ||
Vested or Expected to Vest - Stock Options, Weighted-Average Exercise Price of Shares | $ 21.02 | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |||
Nonvested awards, Balance at January 1, 2016 | 4,499 | ||
Nonvested awards, Granted | 2,348 | ||
Nonvested awards, Released | (1,810) | ||
Nonvested awards, Canceled | (446) | ||
Nonvested awards, Balance at December 31, 2016 | 4,591 | 4,499 | |
Nonvested awards, Balance at January 1, 2016, Weighted average grant date fair value | $ 50.02 | ||
Nonvested awards, Granted, Weighted average grant date fair value | 60.56 | $ 61.18 | $ 52.22 |
Nonvested awards, Released, Weighted average grant date fair value | 45 | ||
Nonvested awards, Canceled, Weighted average grant date fair value | 55.06 | ||
Nonvested awards, Balance at December 31, 2016, Weighted average grant date fair value | $ 56.90 | $ 50.02 | |
Expected to Vest, Awards Other than Options, Number of Nonvested Awards | 4,112 | ||
Expected to Vest, Awards Other than Options, Weighted-Average Grant Date Fair Value | $ 56.64 | ||
Market share units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |||
Nonvested awards, Balance at January 1, 2016 | 1,809 | ||
Nonvested awards, Granted | 731 | ||
Nonvested awards, Released | (1,117) | ||
Nonvested awards, Adjustments for actual payout | 261 | ||
Nonvested awards, Canceled | (157) | ||
Nonvested awards, Balance at December 31, 2016 | 1,527 | 1,809 | |
Nonvested awards, Balance at January 1, 2016, Weighted average grant date fair value | $ 53.1 | ||
Nonvested awards, Granted, Weighted average grant date fair value | 65.26 | $ 67.03 | 55.44 |
Nonvested awards, Released, Weighted average grant date fair value | 44.33 | ||
Nonvested awards, Adjustments for actual payout, Weighted average grant date fair value | 35.93 | ||
Nonvested awards, Canceled, Weighted average grant date fair value | 60.55 | ||
Nonvested awards, Balance at December 31, 2016, Weighted average grant date fair value | $ 61.63 | $ 53.1 | |
Expected to Vest, Awards Other than Options, Number of Nonvested Awards | 1,401 | ||
Expected to Vest, Awards Other than Options, Weighted-Average Grant Date Fair Value | $ 61.39 | ||
Long-term performance awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |||
Nonvested awards, Balance at January 1, 2016 | 4,078 | ||
Nonvested awards, Granted | 1,097 | ||
Nonvested awards, Released | (1,730) | ||
Nonvested awards, Adjustments for actual payout | 912 | ||
Nonvested awards, Canceled | (242) | ||
Nonvested awards, Balance at December 31, 2016 | 4,115 | 4,078 | |
Nonvested awards, Balance at January 1, 2016, Weighted average grant date fair value | $ 56.17 | ||
Nonvested awards, Granted, Weighted average grant date fair value | 64.87 | $ 65.07 | $ 55.17 |
Nonvested awards, Released, Weighted average grant date fair value | 54.02 | ||
Nonvested awards, Adjustments for actual payout, Weighted average grant date fair value | 64.90 | ||
Nonvested awards, Canceled, Weighted average grant date fair value | 62.30 | ||
Nonvested awards, Balance at December 31, 2016, Weighted average grant date fair value | $ 60.97 | $ 56.17 | |
Expected to Vest, Awards Other than Options, Number of Nonvested Awards | 3,956 | ||
Expected to Vest, Awards Other than Options, Weighted-Average Grant Date Fair Value | $ 60.81 |
EMPLOYEE STOCK BENEFIT PLANS (A
EMPLOYEE STOCK BENEFIT PLANS (Additional Information) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total intrinsic value of stock options exercised during the year | $ 158 | $ 206 | $ 199 |
Restricted Stock Units (RSUs) [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Unrecognized compensation cost | $ 188 | ||
Expected weighted-average period of compensation cost to be recognized | 2 years 8 months 12 days | ||
Weighted-average grant date fair value (per share) | $ 60.56 | $ 61.18 | $ 52.22 |
Fair value of awards that vested during the year | $ 81 | $ 77 | $ 68 |
Market share units [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Unrecognized compensation cost | $ 42 | ||
Expected weighted-average period of compensation cost to be recognized | 2 years 9 months 18 days | ||
Weighted-average grant date fair value (per share) | $ 65.26 | $ 67.03 | $ 55.44 |
Fair value of awards that vested during the year | $ 50 | $ 47 | $ 49 |
Long-term performance awards [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Unrecognized compensation cost | $ 94 | ||
Expected weighted-average period of compensation cost to be recognized | 1 year 7 months 6 days | ||
Weighted-average grant date fair value (per share) | $ 64.87 | $ 65.07 | $ 55.17 |
Fair value of awards that vested during the year | $ 93 | $ 75 | $ 90 |
EMPLOYEE STOCK BENEFIT PLANS (O
EMPLOYEE STOCK BENEFIT PLANS (Outstanding and Exercisable Options) (Details) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($)$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Number Outstanding | shares | 6,403 |
Options Outstanding, Weighted Average Remaining Contractual Life | 1 year 5 months 5 days |
Options Outstanding, Weighted Average Exercise Price Per Share | $ 21.02 |
Options Outstanding, Aggregate Intrinsic Value | $ | $ 240 |
Options Exercisable, Number Exercisable | shares | 6,403 |
Options Exercisable, Weighted Average Remaining Contractual Life | 1 year 5 months 5 days |
Options Exercisable, Weighted Average Exercise Price Per Share | $ 21.02 |
Options Exercisable, Aggregate Intrinsic Value | $ | $ 240 |
Closing Company stock price used to calculate the aggregate intrinsic value | $ 58.44 |
Exercise Price Of One Dollar To Twenty Dollars [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Number Outstanding | shares | 3,052 |
Options Outstanding, Weighted Average Remaining Contractual Life | 2 years 1 month 24 days |
Options Outstanding, Weighted Average Exercise Price Per Share | $ 17.54 |
Options Outstanding, Aggregate Intrinsic Value | $ | $ 125 |
Options Exercisable, Number Exercisable | shares | 3,052 |
Options Exercisable, Weighted Average Remaining Contractual Life | 2 years 1 month 24 days |
Options Exercisable, Weighted Average Exercise Price Per Share | $ 17.54 |
Options Exercisable, Aggregate Intrinsic Value | $ | $ 125 |
Exercise Price Of Twenty Dollars To Thirty Dollars [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Number Outstanding | shares | 3,351 |
Options Outstanding, Weighted Average Remaining Contractual Life | 9 months 11 days |
Options Outstanding, Weighted Average Exercise Price Per Share | $ 24.18 |
Options Outstanding, Aggregate Intrinsic Value | $ | $ 115 |
Options Exercisable, Number Exercisable | shares | 3,351 |
Options Exercisable, Weighted Average Remaining Contractual Life | 9 months 11 days |
Options Exercisable, Weighted Average Exercise Price Per Share | $ 24.18 |
Options Exercisable, Aggregate Intrinsic Value | $ | $ 115 |
LEGAL PROCEEDINGS AND CONTING93
LEGAL PROCEEDINGS AND CONTINGENCIES (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($)lawsuits | |
Anti-PD-1 Antibody Patent Litigation [Member] | |
Legal Proceedings And Contingencies [Line Items] | |
Litigation settlement, gross | $ | $ 625 |
Royalty % to be received - 2017 - 2023 | 6.50% |
Royalty % to be received - 2024 - 2026 | 2.50% |
Percent BMS will keep after sharing with Ono | 75.00% |
Percentage BMS shares with Ono | 25.00% |
Plavix Product Liability [Member] | |
Legal Proceedings And Contingencies [Line Items] | |
Number of lawsuits | 5,300 |
Byetta Product Liability Litigation [Member] | |
Legal Proceedings And Contingencies [Line Items] | |
Number of lawsuits | 500 |
Number of current plaintiffs | 2,000 |
Number of plaintiffs settled | 30 |
Abilify Product Liability [Member] | |
Legal Proceedings And Contingencies [Line Items] | |
Number of lawsuits | 130 |
Eliquis Product Liability [Member] | United States [Member] | |
Legal Proceedings And Contingencies [Line Items] | |
Number of lawsuits | 80 |
Eliquis Product Liability [Member] | Canada [Member] | |
Legal Proceedings And Contingencies [Line Items] | |
Number of lawsuits | 2 |
Shareholder Derivative Litigation [Member] | |
Legal Proceedings And Contingencies [Line Items] | |
Litigation settlement, gross | $ | $ 14.7 |
Loss Contingency, Claims Dismissed, Number | 2 |
Number of lawsuits | 3 |
Abilify Government Investigation [Member] | |
Legal Proceedings And Contingencies [Line Items] | |
Number of states not participating in settlement | 1 |
Cercla Matters [Member] | |
Legal Proceedings And Contingencies [Line Items] | |
Loss contingency, estimate of possible loss | $ | $ 62 |
SELECTED QUARTERLY FINANCIAL 94
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Selected Quarterly Data [Line Items] | ||||||||||||
Total Revenues | $ 5,243 | $ 4,922 | $ 4,871 | $ 4,391 | $ 4,287 | $ 4,069 | $ 4,163 | $ 4,041 | $ 19,427 | $ 16,560 | $ 15,879 | |
Gross Margin | 3,860 | 3,617 | 3,665 | 3,339 | 3,335 | 2,972 | 3,150 | 3,194 | 14,481 | 12,651 | ||
Net Earnings | 898 | 1,215 | 1,188 | 1,206 | (188) | 730 | (110) | 1,199 | 4,507 | 1,631 | 2,029 | |
Net Earnings/(Loss) Attributable to Noncontrolling Interest | 4 | 13 | 22 | 11 | 9 | 24 | 20 | 13 | 50 | 66 | 25 | |
Net Earnings/(Loss) Attributable to BMS | $ 894 | $ 1,202 | $ 1,166 | $ 1,195 | $ (197) | $ 706 | $ (130) | $ 1,186 | $ 4,457 | $ 1,565 | $ 2,004 | |
Earnings per Share - Basic | $ 0.53 | $ 0.72 | $ 0.70 | $ 0.72 | $ (0.12) | $ 0.42 | $ (0.08) | $ 0.71 | $ 2.67 | $ 0.94 | $ 1.21 | |
Earnings per Share - Diluted | 0.53 | 0.72 | 0.69 | 0.71 | (0.12) | 0.42 | (0.08) | 0.71 | 2.65 | 0.93 | 1.20 | |
Cash dividends declared per common share | $ 0.39 | $ 0.38 | $ 0.38 | $ 0.38 | $ 0.38 | $ 0.37 | $ 0.37 | $ 0.37 | $ 1.53 | $ 1.49 | $ 1.45 | |
Cash and cash equivalents | $ 4,237 | $ 3,432 | $ 2,934 | $ 2,644 | $ 2,385 | $ 3,975 | $ 4,199 | $ 6,294 | $ 4,237 | $ 2,385 | $ 5,571 | $ 3,586 |
Marketable securities | 4,832 | 5,163 | 4,998 | 5,352 | 6,545 | 6,065 | 5,909 | 5,592 | 4,832 | 6,545 | ||
Total Assets | 33,707 | 33,727 | 32,831 | 31,892 | 31,748 | 31,779 | 31,954 | 33,579 | 33,707 | 31,748 | ||
Long-term debt | 6,465 | 6,585 | 6,581 | 6,593 | 6,550 | 6,632 | 6,615 | 7,127 | 6,465 | 6,550 | ||
Equity | 16,347 | 15,781 | 15,078 | 14,551 | 14,424 | 15,273 | 15,291 | 15,689 | 16,347 | 14,424 | ||
Cost of products sold | 6 | 7 | 4 | 4 | 10 | 15 | 25 | 34 | 21 | 84 | ||
Marketing, selling and administrative | 4 | 2 | 3 | 1 | 10 | |||||||
Research and development | 186 | 59 | 152 | 138 | 741 | 109 | 871 | 162 | 535 | 1,883 | ||
Other (income)/expense | 83 | 22 | (234) | (185) | 428 | (227) | 237 | (122) | (314) | 316 | ||
Increase/(decrease) to pretax income | 275 | 88 | (78) | (43) | 1,183 | (101) | 1,136 | 75 | 242 | 2,293 | ||
Income tax on items above | (105) | (3) | 76 | 83 | (339) | 43 | (116) | (68) | 51 | (480) | ||
Increase/(decrease) to Net Earnings | 170 | 85 | (2) | 40 | 844 | (58) | 1,020 | 7 | 293 | 1,813 | ||
License and asset acquisition charges | ||||||||||||
Selected Quarterly Data [Line Items] | ||||||||||||
Increase/(decrease) to pretax income | 130 | 45 | 139 | 125 | 554 | 94 | 869 | 162 | 439 | 1,679 | ||
IPRD impairments [Member] | ||||||||||||
Selected Quarterly Data [Line Items] | ||||||||||||
Increase/(decrease) to pretax income | 13 | 160 | 13 | 160 | ||||||||
Accelerated depreciation and other [Member] | ||||||||||||
Selected Quarterly Data [Line Items] | ||||||||||||
Increase/(decrease) to pretax income | 43 | 14 | 13 | 13 | 27 | 15 | 2 | 83 | 44 | |||
Provision for restructuring [Member] | ||||||||||||
Selected Quarterly Data [Line Items] | ||||||||||||
Increase/(decrease) to pretax income | 68 | 19 | 18 | 4 | 65 | 10 | 28 | 12 | 109 | 115 | ||
Litigation and other settlements [Member] | ||||||||||||
Selected Quarterly Data [Line Items] | ||||||||||||
Increase/(decrease) to pretax income | (3) | 43 | 143 | 1 | 14 | 40 | 158 | |||||
Divestiture (gains)/losses [Member] | ||||||||||||
Selected Quarterly Data [Line Items] | ||||||||||||
Increase/(decrease) to pretax income | (13) | (277) | (269) | 171 | (198) | (8) | (152) | (559) | (187) | |||
Royalties and licensing income [Member] | ||||||||||||
Selected Quarterly Data [Line Items] | ||||||||||||
Increase/(decrease) to pretax income | (10) | (10) | ||||||||||
Pension charges [Member] | ||||||||||||
Selected Quarterly Data [Line Items] | ||||||||||||
Increase/(decrease) to pretax income | $ 25 | $ 19 | $ 25 | 22 | $ 49 | 48 | 36 | 27 | 91 | 160 | ||
Intangible asset impairment [Member] | ||||||||||||
Selected Quarterly Data [Line Items] | ||||||||||||
Increase/(decrease) to pretax income | $ 15 | 13 | $ 15 | 13 | ||||||||
Written option adjustment [Member] | ||||||||||||
Selected Quarterly Data [Line Items] | ||||||||||||
Increase/(decrease) to pretax income | $ (87) | $ (36) | (123) | |||||||||
Loss on debt redemption [Member] | ||||||||||||
Selected Quarterly Data [Line Items] | ||||||||||||
Increase/(decrease) to pretax income | $ 180 | $ 180 |