Exhibit 99.2
BRISTOL-MYERS SQUIBB COMPANY
QUARTERLY TREND ANALYSIS OF SALES
($ in millions)
Net Sales | 2008 | 2009 | % Change | FX Impact | ||||||||||||||||||||||||||||||||||||||||||||||||||
1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | Qtr vs. Qtr | YTD vs. YTD | Qtr vs. Qtr | YTD vs. YTD | |||||||||||||||||||||||||||||||||||||
Total | $ | 4,188 | $ | 4,475 | $ | 8,663 | $ | 4,510 | $ | 13,173 | $ | 4,542 | $ | 17,715 | $ | 4,322 | $ | 4,665 | $ | 8,987 | $ | 4,788 | $ | 13,775 | $ | 5,033 | $ | 18,808 | 11 | % | 6 | % | 4 | % | -2 | % | ||||||||||||||||||
US Pharmaceuticals | 2,451 | 2,610 | 5,061 | 2,695 | 7,756 | 2,809 | 10,565 | 2,766 | 2,974 | 5,740 | 3,012 | 8,752 | 3,115 | 11,867 | 11 | % | 12 | % | N/A | N/A | ||||||||||||||||||||||||||||||||||
CV/Metabolics | 1,407 | 1,483 | 2,890 | 1,517 | 4,407 | 1,552 | 5,959 | 1,554 | 1,699 | 3,253 | 1,707 | 4,960 | 1,737 | 6,697 | 12 | % | 12 | % | N/A | N/A | ||||||||||||||||||||||||||||||||||
Oncology/Virology | 619 | 633 | 1,252 | 641 | 1,893 | 655 | 2,548 | 627 | 638 | 1,265 | 659 | 1,924 | 689 | 2,613 | 5 | % | 3 | % | N/A | N/A | ||||||||||||||||||||||||||||||||||
Neuroscience | 352 | 407 | 759 | 440 | 1,199 | 497 | 1,696 | 486 | 520 | 1,006 | 521 | 1,527 | 563 | 2,090 | 13 | % | 23 | % | N/A | N/A | ||||||||||||||||||||||||||||||||||
Immunoscience | 73 | 87 | 160 | 97 | 257 | 105 | 362 | 99 | 117 | 216 | 125 | 341 | 126 | 467 | 20 | % | 29 | % | N/A | N/A | ||||||||||||||||||||||||||||||||||
Intercon Pharmaceuticals | 384 | 401 | 785 | 411 | 1,196 | 385 | 1,581 | 309 | 341 | 650 | 354 | 1,004 | 376 | 1,380 | -2 | % | -13 | % | 6 | % | -7 | % | ||||||||||||||||||||||||||||||||
EMAP Pharmaceuticals | 398 | 436 | 834 | 437 | 1,271 | 437 | 1,708 | 379 | 420 | 799 | 457 | 1,256 | 482 | 1,738 | 10 | % | 2 | % | 8 | % | -3 | % | ||||||||||||||||||||||||||||||||
Europe Pharmaceuticals | 933 | 996 | 1,929 | 935 | 2,864 | 886 | 3,750 | 827 | 883 | 1,710 | 911 | 2,621 | 1,004 | 3,625 | 13 | % | -3 | % | 10 | % | -7 | % |
% of Total Sales | 2008 | 2009 | Basis Point Change | |||||||||||||||||||||||||||||||||||||||||||||
1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | Qtr vs. Qtr | YTD vs. YTD | |||||||||||||||||||||||||||||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | — | — | ||||||||||||||||||
US Pharmaceuticals | 58.5 | % | 58.3 | % | 58.4 | % | 59.8 | % | 58.9 | % | 61.8 | % | 59.6 | % | 64.0 | % | 63.8 | % | 63.9 | % | 62.9 | % | 63.5 | % | 61.9 | % | 63.1 | % | 10 | 350 | ||||||||||||||||||
CV/Metabolics | 33.6 | % | 33.1 | % | 33.4 | % | 33.6 | % | 33.4 | % | 34.2 | % | 33.6 | % | 36.0 | % | 36.4 | % | 36.2 | % | 35.6 | % | 36.0 | % | 34.5 | % | 35.6 | % | 30 | 200 | ||||||||||||||||||
Oncology/Virology | 14.8 | % | 14.2 | % | 14.4 | % | 14.2 | % | 14.4 | % | 14.4 | % | 14.4 | % | 14.5 | % | 13.7 | % | 14.1 | % | 13.8 | % | 14.0 | % | 13.7 | % | 13.9 | % | (70 | ) | (50 | ) | ||||||||||||||||
Neuroscience | 8.4 | % | 9.1 | % | 8.8 | % | 9.8 | % | 9.1 | % | 10.9 | % | 9.6 | % | 11.2 | % | 11.2 | % | 11.2 | % | 10.9 | % | 11.1 | % | 11.2 | % | 11.1 | % | 30 | 150 | ||||||||||||||||||
Immunoscience | 1.7 | % | 1.9 | % | 1.8 | % | 2.2 | % | 2.0 | % | 2.3 | % | 2.0 | % | 2.3 | % | 2.5 | % | 2.4 | % | 2.6 | % | 2.4 | % | 2.5 | % | 2.5 | % | 20 | 50 | ||||||||||||||||||
Intercon Pharmaceuticals | 9.2 | % | 9.0 | % | 9.1 | % | 9.1 | % | 9.1 | % | 8.5 | % | 8.9 | % | 7.1 | % | 7.3 | % | 7.2 | % | 7.4 | % | 7.3 | % | 7.5 | % | 7.3 | % | (100 | ) | (160 | ) | ||||||||||||||||
EMAP Pharmaceuticals | 9.5 | % | 9.7 | % | 9.6 | % | 9.7 | % | 9.6 | % | 9.6 | % | 9.6 | % | 8.8 | % | 9.0 | % | 8.9 | % | 9.5 | % | 9.1 | % | 9.6 | % | 9.2 | % | — | (40 | ) | |||||||||||||||||
Europe Pharmaceuticals | 22.3 | % | 22.3 | % | 22.3 | % | 20.7 | % | 21.7 | % | 19.5 | % | 21.2 | % | 19.1 | % | 18.9 | % | 19.0 | % | 19.0 | % | 19.0 | % | 19.9 | % | 19.3 | % | 40 | (190 | ) |
1
BRISTOL-MYERS SQUIBB COMPANY
SALES AND COMPOSITION OF CHANGE IN SALES FOR CONTINUING OPERATIONS
FOR THE PERIOD ENDED DECEMBER 31, 2009
($ in millions)
QUARTER-TO-DATE
US | Non-US | Total | ||||||||||
Price Increases/(Decreases) | 6 | % | — | 3 | % | |||||||
Foreign Exchange | — | 9 | % | 4 | % | |||||||
Volume | 5 | % | 2 | % | 4 | % | ||||||
Total Change | 11 | % | 11 | % | 11 | % | ||||||
Total 2009 Period to Date Sales | $ | 3,127 | $ | 1,906 | $ | 5,033 | ||||||
Total 2008 Period to Date Sales | $ | 2,819 | $ | 1,723 | $ | 4,542 | ||||||
YEAR-TO-DATE | ||||||||||||
US | Non-US | Total | ||||||||||
Price Increases/(Decreases) | 7 | % | — | 4 | % | |||||||
Foreign Exchange | — | -6 | % | -2 | % | |||||||
Volume | 5 | % | 3 | % | 4 | % | ||||||
Total Change | 12 | % | -3 | % | 6 | % | ||||||
Total 2009 Period to Date Sales | $ | 11,909 | $ | 6,899 | $ | 18,808 | ||||||
Total 2008 Period to Date Sales | $ | 10,611 | $ | 7,104 | $ | 17,715 |
2
BRISTOL-MYERS SQUIBB COMPANY
CONSOLIDATED STATEMENT OF EARNINGS FROM CONTINUING OPERATIONS
($ in millions, except per share amounts)
2008 | 2009 | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | Qtr vs. Qtr | YTD vs. YTD | |||||||||||||||||||||||||||||||||||||||||||||||
Net Sales | $ | 4,188 | $ | 4,475 | $ | 8,663 | $ | 4,510 | $ | 13,173 | $ | 4,542 | $ | 17,715 | $ | 4,322 | $ | 4,665 | $ | 8,987 | $ | 4,788 | $ | 13,775 | $ | 5,033 | $ | 18,808 | 11 | % | 6 | % | ||||||||||||||||||||||||||||||
Cost of products sold | 1,318 | 1,398 | 2,716 | 1,346 | 4,062 | 1,254 | 5,316 | 1,165 | 1,225 | 2,390 | 1,317 | 3,707 | 1,433 | 5,140 | 14 | % | -3 | % | ||||||||||||||||||||||||||||||||||||||||||||
Marketing, selling and administrative | 995 | 1,013 | 2,008 | 1,034 | 3,042 | 1,098 | 4,140 | 901 | 922 | 1,823 | 953 | 2,776 | 1,170 | 3,946 | 7 | % | -5 | % | ||||||||||||||||||||||||||||||||||||||||||||
Advertising and product promotion | 235 | 325 | 560 | 265 | 825 | 356 | 1,181 | 248 | 298 | 546 | 256 | 802 | 334 | 1,136 | -6 | % | -4 | % | ||||||||||||||||||||||||||||||||||||||||||||
Research and development | 766 | 809 | 1,575 | 816 | 2,391 | 1,121 | 3,512 | 908 | 811 | 1,719 | 820 | 2,539 | 1,108 | 3,647 | -1 | % | 4 | % | ||||||||||||||||||||||||||||||||||||||||||||
Acquired in-process research and development | — | 32 | 32 | — | 32 | — | 32 | — | — | — | — | — | — | — | — | -100 | % | |||||||||||||||||||||||||||||||||||||||||||||
Provision for restructuring, net | 10 | 29 | 39 | 25 | 64 | 151 | 215 | 19 | 19 | 38 | 51 | 89 | 47 | 136 | -69 | % | -37 | % | ||||||||||||||||||||||||||||||||||||||||||||
Litigation expense, net | — | 2 | 2 | 30 | 32 | 1 | 33 | 104 | 28 | 132 | — | 132 | — | 132 | -100 | % | * | |||||||||||||||||||||||||||||||||||||||||||||
Equity in net income of affiliates | (164 | ) | (150 | ) | (314 | ) | (164 | ) | (478 | ) | (139 | ) | (617 | ) | (146 | ) | (150 | ) | (296 | ) | (139 | ) | (435 | ) | (115 | ) | (550 | ) | -17 | % | -11 | % | ||||||||||||||||||||||||||||||
Gain on sale of Imclone shares | — | — | — | — | — | (895 | ) | (895 | ) | — | — | — | — | — | — | — | 100 | % | 100 | % | ||||||||||||||||||||||||||||||||||||||||||
Other (income)/expense, net | 30 | (16 | ) | 14 | 167 | 181 | (159 | ) | 22 | (72 | ) | (10 | ) | (82 | ) | (35 | ) | (117 | ) | (264 | ) | (381 | ) | 66 | % | * | ||||||||||||||||||||||||||||||||||||
Total expenses | 3,190 | 3,442 | 6,632 | 3,519 | 10,151 | 2,788 | 12,939 | 3,127 | 3,143 | 6,270 | 3,223 | 9,493 | 3,713 | 13,206 | 33 | % | 2 | % | ||||||||||||||||||||||||||||||||||||||||||||
Earnings from Continuing Operations Before Income Taxes | $ | 998 | $ | 1,033 | $ | 2,031 | $ | 991 | $ | 3,022 | $ | 1,754 | $ | 4,776 | $ | 1,195 | $ | 1,522 | $ | 2,717 | $ | 1,565 | $ | 4,282 | $ | 1,320 | $ | 5,602 | -25 | % | 17 | % | ||||||||||||||||||||||||||||||
Provision for income taxes | 261 | 193 | 454 | 266 | 720 | 370 | 1,090 | 275 | 353 | 628 | 366 | 994 | 188 | 1,182 | -49 | % | 8 | % | ||||||||||||||||||||||||||||||||||||||||||||
Net Earnings from Continuing Operations | $ | 737 | $ | 840 | $ | 1,577 | $ | 725 | $ | 2,302 | $ | 1,384 | $ | 3,686 | $ | 920 | $ | 1,169 | $ | 2,089 | $ | 1,199 | $ | 3,288 | $ | 1,132 | $ | 4,420 | -18 | % | 20 | % | ||||||||||||||||||||||||||||||
Net Earnings Attributable to Noncontrolling Interest | 228 | 239 | 467 | 257 | 724 | 265 | 989 | 271 | 289 | 560 | 307 | 867 | 314 | 1,181 | 18 | % | 19 | % | ||||||||||||||||||||||||||||||||||||||||||||
Net Earnings from Continuing Operations Attributable to Bristol-Myers Squibb Company | $ | 509 | $ | 601 | $ | 1,110 | $ | 468 | $ | 1,578 | $ | 1,119 | $ | 2,697 | $ | 649 | $ | 880 | $ | 1,529 | $ | 892 | $ | 2,421 | $ | 818 | $ | 3,239 | -27 | % | 20 | % | ||||||||||||||||||||||||||||||
Contingently convertible debt interest expense and dividends attributable to unvested shares | 5 | 1 | 6 | 1 | 7 | (5 | ) | 3 | (4 | ) | (5 | ) | (8 | ) | (5 | ) | (13 | ) | (4 | ) | (17 | ) | -20 | % | * | |||||||||||||||||||||||||||||||||||||
Net Earnings used for Diluted EPS Calc - Continuing Operations-Attributable to Bristol-Myers Squibb Company | $ | 514 | $ | 602 | $ | 1,116 | $ | 469 | $ | 1,585 | $ | 1,114 | $ | 2,700 | $ | 645 | $ | 875 | $ | 1,521 | $ | 887 | $ | 2,408 | $ | 814 | $ | 3,222 | -27 | % | 19 | % | ||||||||||||||||||||||||||||||
Diluted Earnings Attributable to Bristol-Myers Squibb Company per Common Share** - Continuing Operations | $ | 0.26 | $ | 0.30 | $ | 0.56 | $ | 0.23 | $ | 0.79 | $ | 0.56 | $ | 1.35 | $ | 0.33 | $ | 0.44 | $ | 0.77 | $ | 0.45 | $ | 1.21 | $ | 0.41 | $ | 1.63 | -27 | % | 21 | % | ||||||||||||||||||||||||||||||
Average Common Shares Outstanding - Diluted | 2,006 | 2,006 | 2,005 | 2,002 | 2,004 | 1,980 | 1,999 | 1,981 | 1,983 | 1,982 | 1,984 | 1,982 | 1,967 | 1,978 | -1 | % | -1 | % | ||||||||||||||||||||||||||||||||||||||||||||
Dividends declared per common share | $ | 0.31 | $ | 0.31 | $ | 0.62 | $ | 0.31 | $ | 0.93 | $ | 0.31 | $ | 1.24 | $ | 0.31 | $ | 0.31 | $ | 0.62 | $ | 0.31 | $ | 0.93 | $ | 0.32 | $ | 1.25 | 3 | % | 1 | % | ||||||||||||||||||||||||||||||
% of Net Sales | 2008 | 2009 | Basis Point Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | Qtr vs. Qtr | YTD vs. YTD | |||||||||||||||||||||||||||||||||||||||||||||||
Gross Margin | 68.5 | % | 68.8 | % | 68.6 | % | 70.2 | % | 69.2 | % | 72.4 | % | 70.0 | % | 73.0 | % | 73.7 | % | 73.4 | % | 72.5 | % | 73.1 | % | 71.5 | % | 72.7 | % | (90 | ) | 270 | |||||||||||||||||||||||||||||||
Cost of products sold | 31.5 | % | 31.2 | % | 31.4 | % | 29.8 | % | 30.8 | % | 27.6 | % | 30.0 | % | 27.0 | % | 26.3 | % | 26.6 | % | 27.5 | % | 26.9 | % | 28.5 | % | 27.3 | % | 90 | (270 | ) | |||||||||||||||||||||||||||||||
Marketing, selling and administrative | 23.8 | % | 22.6 | % | 23.2 | % | 22.9 | % | 23.1 | % | 24.2 | % | 23.4 | % | 20.8 | % | 19.8 | % | 20.3 | % | 19.9 | % | 20.2 | % | 23.2 | % | 21.0 | % | (100 | ) | (240 | ) | ||||||||||||||||||||||||||||||
Advertising and product promotion | 5.6 | % | 7.3 | % | 6.5 | % | 5.9 | % | 6.3 | % | 7.8 | % | 6.7 | % | 5.7 | % | 6.4 | % | 6.1 | % | 5.3 | % | 5.8 | % | 6.6 | % | 6.0 | % | (120 | ) | (70 | ) | ||||||||||||||||||||||||||||||
Research and development | 18.3 | % | 18.1 | % | 18.2 | % | 18.1 | % | 18.2 | % | 24.7 | % | 19.8 | % | 21.0 | % | 17.4 | % | 19.1 | % | 17.1 | % | 18.4 | % | 22.0 | % | 19.4 | % | (270 | ) | (40 | ) | ||||||||||||||||||||||||||||||
Acquired in-process research and development | — | 0.7 | % | 0.4 | % | — | 0.2 | % | — | 0.2 | % | — | — | — | — | — | — | — | — | (20 | ) | |||||||||||||||||||||||||||||||||||||||||
Total expenses | 76.2 | % | 76.9 | % | 76.6 | % | 78.0 | % | 77.1 | % | 61.4 | % | 73.0 | % | 72.4 | % | 67.4 | % | 69.8 | % | 67.3 | % | 68.9 | % | 73.8 | % | 70.2 | % | 1,240 | (280 | ) | |||||||||||||||||||||||||||||||
Earnings from Continuing Operations Before Income Taxes | 23.8 | % | 23.1 | % | 23.4 | % | 22.0 | % | 22.9 | % | 38.6 | % | 27.0 | % | 27.6 | % | 32.6 | % | 30.2 | % | 32.7 | % | 31.1 | % | 26.2 | % | 29.8 | % | (1,240 | ) | 280 | |||||||||||||||||||||||||||||||
Net Earnings from Continuing Operations Attributable to Bristol-Myers Squibb Company | 12.2 | % | 13.4 | % | 12.8 | % | 10.4 | % | 12.0 | % | 24.6 | % | 15.2 | % | 15.0 | % | 18.9 | % | 17.0 | % | 18.6 | % | 17.6 | % | 16.3 | % | 17.2 | % | (830 | ) | 200 | |||||||||||||||||||||||||||||||
Other Ratios | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effective Tax Rate | 26.2 | % | 18.7 | % | 22.4 | % | 26.8 | % | 23.8 | % | 21.1 | % | 22.8 | % | 23.0 | % | 23.2 | % | 23.1 | % | 23.4 | % | 23.2 | % | 14.2 | % | 21.1 | % | (690 | ) | (170 | ) | ||||||||||||||||||||||||||||||
Other (Income)/ Expense, net | 2008 | 2009 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | Qtr vs. Qtr | YTD vs. YTD | |||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | $ | 73 | $ | 80 | $ | 153 | $ | 84 | $ | 237 | $ | 73 | $ | 310 | $ | 52 | $ | 42 | $ | 94 | $ | 47 | $ | 141 | $ | 43 | $ | 184 | -41 | % | -41 | % | ||||||||||||||||||||||||||||||
Interest income | (43 | ) | (31 | ) | (74 | ) | (37 | ) | (111 | ) | (19 | ) | (130 | ) | (13 | ) | (14 | ) | (27 | ) | (13 | ) | (40 | ) | (14 | ) | (54 | ) | -26 | % | -58 | % | ||||||||||||||||||||||||||||||
ARS impairment charge | 25 | — | 25 | 224 | 247 | 58 | 305 | — | — | — | — | — | — | — | -100 | % | -100 | % | ||||||||||||||||||||||||||||||||||||||||||||
(Gain)/Loss on debt buyback and termination of interest rate swap agreements | — | — | — | — | — | (57 | ) | (57 | ) | — | (11 | ) | (11 | ) | 4 | (7 | ) | — | (7 | ) | -100 | % | -88 | % | ||||||||||||||||||||||||||||||||||||||
Foreign exchange transaction losses/(gains) | 18 | (2 | ) | 16 | (52 | ) | (36 | ) | (42 | ) | (78 | ) | (13 | ) | 17 | 4 | 13 | 17 | (15 | ) | 2 | -64 | % | -103 | % | |||||||||||||||||||||||||||||||||||||
Gain on sale of product lines, businesses and assets | (9 | ) | — | (9 | ) | — | (9 | ) | (159 | ) | (168 | ) | (44 | ) | (11 | ) | (55 | ) | (17 | ) | (72 | ) | (288 | ) | (360 | ) | 81 | % | 114 | % | ||||||||||||||||||||||||||||||||
Medarex acquisition | — | — | — | — | — | — | — | — | — | — | (10 | ) | (10 | ) | — | (10 | ) | — | — | |||||||||||||||||||||||||||||||||||||||||||
Net royalty income and amortization of upfront and milestone payments received from alliance partners | (41 | ) | (41 | ) | (82 | ) | (42 | ) | (124 | ) | (17 | ) | (141 | ) | (35 | ) | (34 | ) | (69 | ) | (50 | ) | (119 | ) | (29 | ) | (148 | ) | 71 | % | 5 | % | ||||||||||||||||||||||||||||||
Pension settlements/curtailments | — | — | — | — | — | 8 | 8 | — | 25 | 25 | — | 25 | 18 | 43 | 125 | % | * | |||||||||||||||||||||||||||||||||||||||||||||
Other , net | 7 | (22 | ) | (15 | ) | (10 | ) | (23 | ) | (4 | ) | (27 | ) | (19 | ) | (24 | ) | (43 | ) | (9 | ) | (52 | ) | 21 | (31 | ) | * | 15 | % | |||||||||||||||||||||||||||||||||
$ | 30 | ($ | 16 | ) | $ | 14 | $ | 167 | $ | 181 | ($ | 159 | ) | $ | 22 | ($ | 72 | ) | ($ | 10 | ) | ($ | 82 | ) | ($ | 35 | ) | ($ | 117 | ) | (264 | ) | ($ | 381 | ) | 66 | % | * |
* | in excess of +/- 200% |
** | quarterly amounts may not add to the year-to-date totals due to rounding of individual calculations. |
3
BRISTOL-MYERS SQUIBB COMPANY
RECONCILIATION OF GAAP AND NON-GAAP GROWTH DOLLARS AND PERCENTAGES EXCLUDING FOREIGN EXCHANGE IMPACT
FOR THE PERIOD ENDED DECEMBER 31, 2009
(Unaudited, amounts in millions except per share data)
QUARTER-TO-DATE
2009 | 2008 | Growth $ | Growth % | Favorable / (Unfavorable) FX Impact $ * | 2009 Excluding FX | Favorable / (Unfavorable) FX Impact % * | Growth % Excluding FX | ||||||||||||||||
Net sales | $ | 5,033 | $ | 4,542 | 491 | 11 | % | 141 | 4,892 | 4 | % | 7 | % | ||||||||||
Marketing, selling and administrative (a) | 1,170 | 1,098 | 72 | 7 | % | (43 | ) | 1,127 | -5 | % | 2 | % | |||||||||||
Marketing, selling and administrative excluding specified items (b) | 1,025 | 1,053 | (28 | ) | -3 | % | (44 | ) | 981 | -4 | % | -7 | % | ||||||||||
Advertising and product promotion | 334 | 356 | (22 | ) | -6 | % | (11 | ) | 323 | -3 | % | -9 | % | ||||||||||
Advertising and product promotion excluding specified items (b) | �� | 334 | 356 | (22 | ) | -6 | % | (11 | ) | 323 | -3 | % | -9 | % | |||||||||
Research and development | 1,108 | 1,121 | (13 | ) | -1 | % | (11 | ) | 1,097 | -1 | % | -2 | % | ||||||||||
Research and development excluding specified items (b) | 935 | 848 | 87 | 10 | % | (11 | ) | 924 | -1 | % | 9 | % | |||||||||||
(a) General and administrative | 540 | 494 | 46 | 9 | % | (13 | ) | 527 | -3 | % | 6 | % | |||||||||||
General and administrative excluding specified items (c) | 395 | 449 | (54 | ) | -12 | % | (14 | ) | 381 | -2 | % | -14 | % |
(b) Please refer to the Specified Items QTD tab for detail of specified items and the GAAP to Non-GAAP P&L tab for reconciliation.
(c) The following table provides a reconciliation table of General and administrative GAAP to Non-GAAP figures:
2009 | 2008 | |||
General and administrative | 540 | 494 | ||
Specified Items: | ||||
Process standardization implementation costs | 45 | 45 | ||
BMS foundation funding initiative | 100 | — | ||
General and administrative excluding specified items | 395 | 449 | ||
YEAR-TO-DATE
2009 | 2008 | Growth $ | Growth % | Favorable / (Unfavorable) FX Impact $ * | 2009 Excluding FX | Favorable / (Unfavorable) FX Impact % * | Growth % Excluding FX | ||||||||||||||||
Net sales | $ | 18,808 | $ | 17,715 | 1,093 | 6 | % | (427 | ) | 19,235 | -2 | % | 8 | % | |||||||||
Marketing, selling and administrative (a) | 3,946 | 4,140 | (194 | ) | -5 | % | 88 | 4,034 | 2 | % | -3 | % | |||||||||||
Marketing, selling and administrative excluding specified items (b) | 3,736 | 4,031 | (295 | ) | -7 | % | 86 | 3,822 | 2 | % | -5 | % | |||||||||||
Advertising and product promotion | 1,136 | 1,181 | (45 | ) | -4 | % | 21 | 1,157 | 2 | % | -2 | % | |||||||||||
Advertising and product promotion excluding specified items (b) | 1,136 | 1,181 | (45 | ) | -4 | % | 21 | 1,157 | 2 | % | -2 | % | |||||||||||
Research and development | 3,647 | 3,512 | 135 | 4 | % | 51 | 3,698 | 1 | % | 5 | % | ||||||||||||
Research and development excluding specified items (b) | 3,300 | 3,151 | 149 | 5 | % | 51 | 3,351 | 1 | % | 6 | % | ||||||||||||
(a) General and administrative | 1,594 | 1,727 | (133 | ) | -8 | % | 27 | 1,621 | 2 | % | -6 | % | |||||||||||
General and administrative excluding specified items (c) | 1,384 | 1,618 | (234 | ) | -14 | % | 25 | 1,409 | 2 | % | -12 | % |
(b) Please refer to the Specified Items YTD tab for detail of specified items and the GAAP to Non-GAAP P&L tab for reconciliation.
(c) The following table provides a reconciliation table of General and administrative GAAP to Non-GAAP figures:
2009 | 2008 | |||
General and administrative | 1,594 | 1,727 | ||
Specified Items: | ||||
Process standardization implementation costs | 110 | 109 | ||
BMS foundation funding initiative | 100 | — | ||
General and administrative excluding specified items | 1,384 | 1,618 | ||
* The company calculates the foreign exchange (FX) impact by determining the change in a line item’s current and prior period results at a common exchange rate and comparing this change to the actual reported change from the same period. This difference is determined to be the FX impact.
4
BRISTOL-MYERS SQUIBB COMPANY
RECONCILIATION OF GAAP AND NON-GAAP GROWTH DOLLARS AND PERCENTAGES EXCLUDING FOREIGN EXCHANGE IMPACT
FOR THE PERIOD ENDED DECEMBER 31, 2009
(Unaudited, amounts in millions except per share data)
QUARTER-TO-DATE
2009 | 2008 | Growth $ | Growth % | Favorable / (Unfavorable) FX Impact $ * | 2009 Excluding FX | Favorable / (Unfavorable) FX Impact % * | Growth % Excluding FX | |||||||||||||
Plavix | 1,618 | 1,469 | 149 | 10 | % | 20 | 1,598 | 2 | % | 8 | % | |||||||||
Avapro/Avalide | 339 | 316 | 23 | 7 | % | 17 | 322 | 5 | % | 2 | % | |||||||||
Abilify | 707 | 606 | 101 | 17 | % | 9 | 698 | 2 | % | 15 | % | |||||||||
Reyataz | 388 | 329 | 59 | 18 | % | 12 | 376 | 5 | % | 13 | % | |||||||||
Sustiva Franchise | 358 | 300 | 58 | 19 | % | 2 | 356 | 1 | % | 18 | % | |||||||||
Baraclude | 212 | 153 | 59 | 39 | % | 5 | 207 | 5 | % | 34 | % | |||||||||
Orencia | 168 | 129 | 39 | 30 | % | 2 | 166 | 2 | % | 28 | % | |||||||||
Erbitux | 167 | 182 | (15 | ) | -8 | % | — | 167 | — | -8 | % | |||||||||
Sprycel | 119 | 86 | 33 | 38 | % | 5 | 114 | 9 | % | 29 | % | |||||||||
Ixempra | 28 | 25 | 3 | 12 | % | — | 28 | — | 12 | % | ||||||||||
Onglyza | 4 | — | 4 | N/A | — | 4 | N/A | N/A |
YEAR-TO-DATE
2009 | 2008 | Growth $ | Growth % | Favorable / (Unfavorable) FX Impact $ * | 2009 Excluding FX | Favorable / (Unfavorable) FX Impact % * | Growth % Excluding FX | ||||||||||||||
Plavix | 6,146 | 5,603 | 543 | 10 | % | (33 | ) | 6,179 | — | 10 | % | ||||||||||
Avapro/Avalide | 1,283 | 1,290 | (7 | ) | -1 | % | (33 | ) | 1,316 | -3 | % | 2 | % | ||||||||
Abilify | 2,592 | 2,153 | 439 | 20 | % | (47 | ) | 2,639 | -2 | % | 22 | % | |||||||||
Reyataz | 1,401 | 1,292 | 109 | 8 | % | (52 | ) | 1,453 | -4 | % | 12 | % | |||||||||
Sustiva Franchise | 1,277 | 1,149 | 128 | 11 | % | (50 | ) | 1,327 | -4 | % | 15 | % | |||||||||
Baraclude | 734 | 541 | 193 | 36 | % | (25 | ) | 759 | -4 | % | 40 | % | |||||||||
Orencia | 602 | 441 | 161 | 37 | % | (11 | ) | 613 | -2 | % | 39 | % | |||||||||
Erbitux | 683 | 749 | (66 | ) | -9 | % | — | 683 | — | -9 | % | ||||||||||
Sprycel | 421 | 310 | 111 | 36 | % | (24 | ) | 445 | -6 | % | 42 | % | |||||||||
Ixempra | 109 | 101 | 8 | 8 | % | — | 109 | — | 8 | % | |||||||||||
Onglyza | 24 | — | 24 | N/A | — | 24 | N/A | N/A |
* The company calculates the foreign exchange (FX) impact by determining the change in a product’s current and prior period results at a common exchange rate and comparing this change to the actual reported change from the same period. This difference is determined to be the FX impact.
5
BRISTOL-MYERS SQUIBB COMPANY
WORLDWIDE NET SALES FROM CONTINUING OPERATIONS BY PRODUCT
QUARTERLY SALES TREND ANALYSIS
($ in millions)
2008 | 2009 | % Change | FX Impact | |||||||||||||||||||||||||||||||||||||
1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | Qtr vs. Qtr | YTD vs. YTD | Qtr vs. Qtr | YTD vs. YTD | |||||||||||||||||||||||
TOTAL | 4,188 | 4,475 | 8,663 | 4,510 | 13,173 | 4,542 | 17,715 | 4,322 | 4,665 | 8,987 | 4,788 | 13,775 | 5,033 | 18,808 | 11 | % | 6 | % | 4 | % | -2 | % | ||||||||||||||||||
Cardiovascular | 1,828 | 1,933 | 3,761 | 1,948 | 5,709 | 1,942 | 7,651 | 1,892 | 2,050 | 3,942 | 2,055 | 5,997 | 2,118 | 8,115 | 9 | % | 6 | % | 3 | % | -1 | % | ||||||||||||||||||
Plavix | 1,308 | 1,387 | 2,695 | 1,439 | 4,134 | 1,469 | 5,603 | 1,435 | 1,539 | 2,974 | 1,554 | 4,528 | 1,618 | 6,146 | 10 | % | 10 | % | 2 | % | — | |||||||||||||||||||
Avapro/Avalide | 305 | 335 | 640 | 334 | 974 | 316 | 1,290 | 302 | 313 | 615 | 329 | 944 | 339 | 1,283 | 7 | % | -1 | % | 5 | % | -3 | % | ||||||||||||||||||
Virology | 734 | 791 | 1,525 | 824 | 2,349 | 812 | 3,161 | 794 | 848 | 1,642 | 890 | 2,532 | 981 | 3,513 | 21 | % | 11 | % | 4 | % | -4 | % | ||||||||||||||||||
Reyataz | 297 | 324 | 621 | 342 | 963 | 329 | 1,292 | 322 | 331 | 653 | 360 | 1,013 | 388 | 1,401 | 18 | % | 8 | % | 5 | % | -4 | % | ||||||||||||||||||
Sustiva Franchise(a) | 273 | 282 | 555 | 294 | 849 | 300 | 1,149 | 292 | 312 | 604 | 315 | 919 | 358 | 1,277 | 19 | % | 11 | % | 1 | % | -4 | % | ||||||||||||||||||
Baraclude | 108 | 136 | 244 | 144 | 388 | 153 | 541 | 152 | 179 | 331 | 191 | 522 | 212 | 734 | 39 | % | 36 | % | 5 | % | -4 | % | ||||||||||||||||||
Oncology | 436 | 474 | 910 | 447 | 1,357 | 462 | 1,819 | 407 | 450 | 857 | 447 | 1,304 | 437 | 1,741 | -5 | % | -4 | % | 3 | % | -1 | % | ||||||||||||||||||
Erbitux | 187 | 196 | 383 | 184 | 567 | 182 | 749 | 164 | 173 | 337 | 179 | 516 | 167 | 683 | -8 | % | -9 | % | — | — | ||||||||||||||||||||
Sprycel | 66 | 76 | 142 | 82 | 224 | 86 | 310 | 88 | 107 | 195 | 107 | 302 | 119 | 421 | 38 | % | 36 | % | 9 | % | -6 | % | ||||||||||||||||||
Ixempra | 25 | 26 | 51 | 25 | 76 | 25 | 101 | 24 | 29 | 53 | 28 | 81 | 28 | 109 | 12 | % | 8 | % | — | — | ||||||||||||||||||||
Neuroscience | 498 | 575 | 1,073 | 607 | 1,680 | 641 | 2,321 | 621 | 660 | 1,281 | 668 | 1,949 | 727 | 2,676 | 13 | % | 15 | % | 2 | % | -2 | % | ||||||||||||||||||
Abilify(b) | 454 | 529 | 983 | 564 | 1,547 | 606 | 2,153 | 589 | 643 | 1,232 | 653 | 1,885 | 707 | 2,592 | 17 | % | 20 | % | 2 | % | -2 | % | ||||||||||||||||||
Immunoscience | 87 | 106 | 193 | 119 | 312 | 129 | 441 | 124 | 148 | 272 | 162 | 434 | 168 | 602 | 30 | % | 37 | % | 2 | % | -2 | % | ||||||||||||||||||
Orencia | 87 | 106 | 193 | 119 | 312 | 129 | 441 | 124 | 148 | 272 | 162 | 434 | 168 | 602 | 30 | % | 37 | % | 2 | % | -2 | % | ||||||||||||||||||
Metabolics | 25 | 27 | 52 | 30 | 82 | 22 | 104 | 25 | 36 | 61 | 52 | 113 | 30 | 143 | 36 | % | 38 | % | -1 | % | 1 | % | ||||||||||||||||||
Onglyza | — | — | — | — | — | — | — | — | — | — | 20 | 20 | 4 | 24 | N/A | N/A | N/A | N/A |
* | In excess of +/- 200% |
(a) | The Sustiva Franchise includes sales of Sustiva, as well as revenue of bulk efavirenz included in the combination therapy, Atripla. |
(b) | Includes alliance revenue from the co-promotional agreement with Otsuka Pharmaceutical Co., Ltd. |
6
BRISTOL-MYERS SQUIBB COMPANY
DOMESTIC NET SALES FROM CONTINUING OPERATIONS BY PRODUCT
QUARTERLY SALES TREND ANALYSIS
($ in millions)
2008 | 2009 | % Change | % Change in U.S. Total Prescription** | ||||||||||||||||||||||||||||||||||||||
1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | Qtr vs. Qtr | YTD vs. YTD | Qtr vs. Qtr | YTD vs. YTD | ||||||||||||||||||||||||
TOTAL | 2,459 | 2,625 | 5,084 | $ | 2,708 | 7,792 | 2,819 | 10,611 | 2,784 | 2,977 | 5,761 | 3,021 | 8,782 | 3,127 | 11,909 | 11 | % | 12 | % | ||||||||||||||||||||||
Cardiovascular | 1,366 | 1,437 | 2,803 | 1,474 | 4,277 | 1,521 | 5,798 | 1,515 | 1,652 | 3,167 | 1,650 | 4,817 | 1,693 | 6,510 | 11 | % | 12 | % | |||||||||||||||||||||||
Plavix | 1,139 | 1,207 | 2,346 | 1,263 | �� | 3,609 | 1,311 | 4,920 | 1,296 | 1,393 | 2,689 | 1,406 | 4,095 | 1,461 | 5,556 | 11 | % | 13 | % | 4 | % | 4 | % | ||||||||||||||||||
Avapro/Avalide | 174 | 184 | 358 | 189 | 547 | 188 | 735 | 173 | 179 | 352 | 186 | 538 | 184 | 722 | -2 | % | -2 | % | -9 | % | -9 | % | |||||||||||||||||||
Virology | 378 | 376 | 754 | 405 | 1,159 | 407 | 1,566 | 406 | 404 | 810 | 424 | 1,234 | 466 | 1,700 | 14 | % | 9 | % | |||||||||||||||||||||||
Reyataz | 160 | 159 | 319 | 176 | 495 | 172 | 667 | 176 | 169 | 345 | 186 | 531 | 196 | 727 | 14 | % | 9 | % | 9 | % | 8 | % | |||||||||||||||||||
Sustiva Franchise(a) | 175 | 171 | 346 | 185 | 531 | 193 | 724 | 190 | 194 | 384 | 195 | 579 | 224 | 803 | 16 | % | 11 | % | 12 | % | 10 | % | |||||||||||||||||||
Baraclude | 29 | 35 | 64 | 36 | 100 | 40 | 140 | 36 | 39 | 75 | 41 | 116 | 44 | 160 | 10 | % | 14 | % | 14 | % | 13 | % | |||||||||||||||||||
Oncology | 237 | 254 | 491 | 234 | 725 | 246 | 971 | 218 | 233 | 451 | 233 | 684 | 219 | 903 | -11 | % | -7 | % | |||||||||||||||||||||||
Erbitux | 185 | 193 | 378 | 182 | 560 | 179 | 739 | 162 | 171 | 333 | 175 | 508 | 163 | 671 | -9 | % | -9 | % | N/A | N/A | |||||||||||||||||||||
Sprycel | 20 | 21 | 41 | 21 | 62 | 30 | 92 | 30 | 33 | 63 | 28 | 91 | 32 | 123 | 7 | % | 34 | % | 14 | % | 18 | % | |||||||||||||||||||
Ixempra | 25 | 26 | 51 | 24 | 75 | 23 | 98 | 22 | 26 | 48 | 26 | 74 | 25 | 99 | 9 | % | 1 | % | N/A | N/A | |||||||||||||||||||||
Neuroscience | 359 | 413 | 772 | 449 | 1,221 | 502 | 1,723 | 491 | 513 | 1,004 | 520 | 1,524 | 566 | 2,090 | 13 | % | 21 | % | |||||||||||||||||||||||
Abilify(b) | 348 | 403 | 751 | 435 | 1,186 | 490 | 1,676 | 481 | 518 | 999 | 520 | 1,519 | 563 | 2,082 | 15 | % | 24 | % | 19 | % | 26 | % | |||||||||||||||||||
Immunoscience | 73 | 87 | 160 | 97 | 257 | 106 | 363 | 99 | 116 | 215 | 126 | 341 | 126 | 467 | 19 | % | 29 | % | |||||||||||||||||||||||
Orencia | 73 | 87 | 160 | 97 | 257 | 106 | 363 | 99 | 116 | 215 | 126 | 341 | 126 | 467 | 19 | % | 29 | % | N/A | N/A | |||||||||||||||||||||
Metabolics | 15 | 16 | 31 | 17 | 48 | 9 | 57 | 11 | 21 | 32 | 36 | 68 | 12 | 80 | 33 | % | 40 | % | |||||||||||||||||||||||
Onglyza | — | — | — | — | — | — | — | — | — | — | 20 | 20 | 2 | 22 | N/A | N/A | N/A | N/A |
* | In excess of +/- 200% |
** | In the first quarter of 2009, the Company changed its service provider for U.S prescription data to Wolters Kluwer Health, Inc. (WK) for external reporting purposes and internal demand for most products. Prior to 2009, the Company used prescription data based on the Next-Generation Prescription Service Version 2.0 (NGPS) of the National Prescription Audit provided by IMS Health (IMS). The estimated total U.S. prescription change for the retail and mail order channels are calculated based on WK data on a weighted-average basis. The weighted-average basis reflects the fact that mail order prescriptions include a greater volume of product supplied compared to retail prescriptions, which on average are 90 days for mail order and 30 days for retail. The calculation is derived by multiplying WK mail order prescription data by a factor that approximates three and adding to this the WK retail prescriptions. |
(a) | The Sustiva Franchise includes sales of Sustiva, as well as revenue of bulk efavirenz included in the combination therapy, Atripla. The change in U.S. total prescriptions growth for the Sustiva Franchise includes both branded Sustiva and Atripla prescription units. |
(b) | Includes alliance revenue from the co-promotional agreement with Otsuka Pharmaceutical Co., Ltd. |
7
BRISTOL-MYERS SQUIBB COMPANY
INTERNATIONAL NET SALES FROM CONTINUING OPERATIONS BY PRODUCT
QUARTERLY SALES TREND ANALYSIS
($ in millions)
2008 | 2009 | % Change | FX Impact | |||||||||||||||||||||||||||||||||||||
1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | 1st Qtr | 2nd Qtr | 6 Months | 3rd Qtr | 9 Months | 4th Qtr | Year | Qtr vs. Qtr | YTD vs. YTD | Qtr vs. Qtr | YTD vs. YTD | |||||||||||||||||||||||
TOTAL | 1,729 | 1,850 | 3,579 | 1,802 | 5,381 | 1,723 | 7,104 | 1,538 | 1,688 | 3,226 | 1,767 | 4,993 | 1,906 | 6,899 | 11 | % | -3 | % | 9 | % | -6 | % | ||||||||||||||||||
Cardiovascular | 462 | 496 | 958 | 474 | 1,432 | 421 | 1,853 | 377 | 398 | 775 | 405 | 1,180 | 425 | 1,605 | 1 | % | -13 | % | 11 | % | -6 | % | ||||||||||||||||||
Plavix | 169 | 180 | 349 | 176 | 525 | 158 | 683 | 139 | 146 | 285 | 148 | 433 | 157 | 590 | -1 | % | -14 | % | 11 | % | -5 | % | ||||||||||||||||||
Avapro/Avalide | 131 | 151 | 282 | 145 | 427 | 128 | 555 | 129 | 134 | 263 | 143 | 406 | 155 | 561 | 21 | % | 1 | % | 15 | % | -6 | % | ||||||||||||||||||
Virology | 356 | 415 | 771 | 419 | 1,190 | 405 | 1,595 | 388 | 444 | 832 | 466 | 1,298 | 515 | 1,813 | 27 | % | 14 | % | 8 | % | -7 | % | ||||||||||||||||||
Reyataz | 137 | 165 | 302 | 166 | 468 | 157 | 625 | 146 | 162 | 308 | 174 | 482 | 192 | 674 | 22 | % | 8 | % | 9 | % | -8 | % | ||||||||||||||||||
Sustiva Franchise(a) | 98 | 111 | 209 | 109 | 318 | 107 | 425 | 102 | 118 | 220 | 120 | 340 | 134 | 474 | 25 | % | 12 | % | 4 | % | -11 | % | ||||||||||||||||||
Baraclude | 79 | 101 | 180 | 108 | 288 | 113 | 401 | 116 | 140 | 256 | 150 | 406 | 168 | 574 | 49 | % | 43 | % | 8 | % | -5 | % | ||||||||||||||||||
Oncology | 199 | 220 | 419 | 213 | 632 | 216 | 848 | 189 | 217 | 406 | 214 | 620 | 218 | 838 | 1 | % | -1 | % | 6 | % | -2 | % | ||||||||||||||||||
Erbitux | 2 | 3 | 5 | 2 | 7 | 3 | 10 | 2 | 2 | 4 | 4 | 8 | 4 | 12 | 33 | % | 20 | % | 2 | % | -4 | % | ||||||||||||||||||
Sprycel | 46 | 55 | 101 | 61 | 162 | 56 | 218 | 58 | 74 | 132 | 79 | 211 | 87 | 298 | 55 | % | 37 | % | 16 | % | -9 | % | ||||||||||||||||||
Ixempra | — | — | — | 1 | 1 | 2 | 3 | 2 | 3 | 5 | 2 | 7 | 3 | 10 | 50 | % | * | N/A | N/A | |||||||||||||||||||||
Neuroscience | 139 | 162 | 301 | 158 | 459 | 139 | 598 | 130 | 147 | 277 | 148 | 425 | 161 | 586 | 16 | % | -2 | % | 10 | % | -8 | % | ||||||||||||||||||
Abilify(b) | 106 | 126 | 232 | 129 | 361 | 116 | 477 | 108 | 125 | 233 | 133 | 366 | 144 | 510 | 24 | % | 7 | % | 11 | % | -9 | % | ||||||||||||||||||
Immunoscience | 14 | 19 | 33 | 22 | 55 | 23 | 78 | 25 | 32 | 57 | 36 | 93 | 42 | 135 | 83 | % | 73 | % | 19 | % | -9 | % | ||||||||||||||||||
Orencia | 14 | 19 | 33 | 22 | 55 | 23 | 78 | 25 | 32 | 57 | 36 | 93 | 42 | 135 | 83 | % | 73 | % | 19 | % | -9 | % | ||||||||||||||||||
Metabolics | 10 | 11 | 21 | 13 | 34 | 13 | 47 | 14 | 15 | 29 | 16 | 45 | 18 | 63 | 38 | % | 34 | % | -1 | % | 2 | % | ||||||||||||||||||
Onglyza | — | — | — | — | — | — | — | — | — | — | — | — | 2 | 2 | N/A | N/A | N/A | N/A |
* | In excess of +/- 200% |
(a) | The Sustiva Franchise includes sales of Sustiva, as well as revenue of bulk efavirenz included in the combination therapy, Atripla. |
(b) | Includes alliance revenue from the co-promotional agreement with Otsuka Pharmaceutical Co., Ltd. |
8
BRISTOL-MYERS SQUIBB COMPANY
RECONCILIATION OF GAAP RESULTS OF CONTINUING OPERATIONS
TO NON-GAAP RESULTS OF CONTINUING OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2008
(Unaudited, amounts in millions except per share data)
Q1 2008 | |||||||||||
GAAP | Specified Items | Non GAAP | |||||||||
Net Sales | $ | 4,188 | — | $ | 4,188 | ||||||
Cost of products sold | 1,318 | (96 | ) | 1,222 | |||||||
Gross Profit | 2,870 | 96 | 2,966 | ||||||||
Gross margin as a % of sales | 68.5 | % | 2.3 | % | 70.8 | % | |||||
Marketing, selling and administrative | 995 | (15 | ) | 980 | |||||||
Advertising and product promotion | 235 | — | 235 | ||||||||
Total SGA | 1,230 | (15 | ) | 1,215 | |||||||
SG&A as a % of sales | 29.4 | % | (0.4 | )% | 29.0 | % | |||||
Research and development | 766 | (20 | ) | 746 | |||||||
R&D as a % of sales | 18.3 | % | (0.5 | )% | 17.8 | % | |||||
Operating Margins | |||||||||||
874 | 131 | 1,005 | |||||||||
Operating Margins as a % of sales | 20.9 | % | 3.1 | % | 24.0 | % | |||||
Provision for restructuring, net | 10 | (10 | ) | — | |||||||
Litigation expense, net | — | — | — | ||||||||
Equity in net income of affiliates | (164 | ) | — | (164 | ) | ||||||
Other income, net | 30 | (32 | ) | (2 | ) | ||||||
Earnings from Continuing Operations Before Income Taxes | $ | 998 | 173 | $ | 1,171 | ||||||
Provision for income taxes | 261 | 33 | 294 | ||||||||
Net Earnings - Continuing Operations | $ | 737 | 140 | $ | 877 | ||||||
Net Earnings - Continuing Operations Attributable to Noncontrolling Interest | 228 | 228 | |||||||||
Net Earnings - Continuing Operations Attributable to Bristol-Myers Squibb Company | $ | 509 | 140 | $ | 649 | ||||||
Contingently convertible debt interest expense and dividends attributable to unvested shares | 5 | 5 | |||||||||
Net Earnings used for Diluted EPS Calc - Continuing Operations-Attributable to Bristol-Myers Squibb Company | $ | 514 | 140 | $ | 654 | ||||||
Average Common Shares Outstanding - Diluted | 2,006 | 2,006 | |||||||||
Diluted EPS - Continuing Operations Attributable to Bristol-Myers Squibb Company | $ | 0.26 | 0.07 | $ | 0.33 | ||||||
Net Earnings from Continuing Operations Attributable to Bristol-Myers Squibb Company as a % of sales | 12.2 | % | 3.3 | % | 15.5 | % | |||||
Effective Tax Rate | 26.2 | % | (1.1 | )% | 25.1 | % |
9
BRISTOL-MYERS SQUIBB COMPANY
RECONCILIATION OF GAAP RESULTS OF CONTINUING OPERATIONS
TO NON-GAAP RESULTS OF CONTINUING OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2008
(Unaudited, amounts in millions except per share data)
Q2 2008 | |||||||||||
GAAP | Specified Items | Non GAAP | |||||||||
Net Sales | $ | 4,475 | — | $ | 4,475 | ||||||
Cost of products sold | 1,398 | (58 | ) | 1,340 | |||||||
Gross Profit | 3,077 | 58 | 3,135 | ||||||||
Gross margin as a % of sales | 68.8 | % | 1.3 | % | 70.1 | % | |||||
Marketing, selling and administrative | 1,013 | (21 | ) | 992 | |||||||
Advertising and product promotion | 325 | — | 325 | ||||||||
Total SGA | 1,338 | (21 | ) | 1,317 | |||||||
SG&A as a % of sales | 29.9 | % | (0.5 | )% | 29.4 | % | |||||
Research and development | 809 | (31 | ) | 778 | |||||||
R&D as a % of sales | 18.1 | % | (0.7 | )% | 17.4 | % | |||||
Operating Margins | |||||||||||
930 | 110 | 1,040 | |||||||||
Operating Margins as a % of sales | 20.8 | % | 2.4 | % | 23.2 | % | |||||
Acquired in-process research and development | 32 | (32 | ) | — | |||||||
Provision for restructuring, net | 29 | (29 | ) | — | |||||||
Litigation expense, net | 2 | (2 | ) | — | |||||||
Equity in net income of affiliates | (150 | ) | — | (150 | ) | ||||||
Other income, net | (16 | ) | 2 | (14 | ) | ||||||
Earnings from Continuing Operations Before Income Taxes | $ | 1,033 | 171 | $ | 1,204 | ||||||
Provision for income taxes | 193 | 34 | 227 | ||||||||
Net Earnings - Continuing Operations | $ | 840 | 137 | $ | 977 | ||||||
Net Earnings - Continuing Operations Attributable to Noncontrolling Interest | 239 | 239 | |||||||||
Net Earnings - Continuing Operations Attributable to Bristol-Myers Squibb Company | $ | 601 | 137 | $ | 738 | ||||||
Contingently convertible debt interest expense and dividends attributable to unvested shares | 1 | 1 | |||||||||
Net Earnings used for Diluted EPS Calc - Continuing Operations-Attributable to Bristol-Myers Squibb Company | $ | 602 | 137 | $ | 739 | ||||||
Average Common Shares Outstanding - Diluted | 2,006 | 2,006 | |||||||||
Diluted EPS - Continuing Operations Attributable to Bristol-Myers Squibb Company | $ | 0.30 | 0.07 | $ | 0.37 | ||||||
Net Earnings from Continuing Operations Attributable to Bristol-Myers Squibb Company as a % of sales | 13.4 | % | 3.1 | % | 16.5 | % | |||||
Effective Tax Rate | 18.7 | % | 0.2 | % | 18.9 | % |
10
BRISTOL-MYERS SQUIBB COMPANY
RECONCILIATION OF GAAP RESULTS OF CONTINUING OPERATIONS
TO NON-GAAP RESULTS OF CONTINUING OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2008
(Unaudited, amounts in millions except per share data)
Q3 2008 | |||||||||||
GAAP | Specified Items | Non GAAP | |||||||||
Net Sales | $ | 4,510 | — | $ | 4,510 | ||||||
Cost of products sold | 1,346 | (53 | ) | 1,293 | |||||||
Gross Profit | 3,164 | 53 | 3,217 | ||||||||
Gross margin as a % of sales | 70.2 | % | 1.1 | % | 71.3 | % | |||||
Marketing, selling and administrative | 1,034 | (28 | ) | 1,006 | |||||||
Advertising and product promotion | 265 | — | 265 | ||||||||
Total SGA | 1,299 | (28 | ) | 1,271 | |||||||
SG&A as a % of sales | 28.8 | % | (0.6 | )% | 28.2 | % | |||||
Research and development | 816 | (37 | ) | 779 | |||||||
R&D as a % of sales | 18.1 | % | (0.8 | )% | 17.3 | % | |||||
Operating Margins | |||||||||||
1,049 | 118 | 1,167 | |||||||||
Operating Margins as a % of sales | 23.3 | % | 2.6 | % | 25.9 | % | |||||
Provision for restructuring, net | 25 | (25 | ) | — | |||||||
Litigation expense, net | 30 | (30 | ) | — | |||||||
Equity in net income of affiliates | (164 | ) | — | (164 | ) | ||||||
Other income, net | 167 | (226 | ) | (59 | ) | ||||||
Earnings from Continuing Operations Before Income Taxes | $ | 991 | 399 | $ | 1,390 | ||||||
Provision for income taxes | 266 | 83 | 349 | ||||||||
Net Earnings - Continuing Operations | $ | 725 | 316 | $ | 1,041 | ||||||
Net Earnings - Continuing Operations Attributable to Noncontrolling Interest | 257 | 257 | |||||||||
Net Earnings - Continuing Operations Attributable to Bristol-Myers Squibb Company | $ | 468 | 316 | $ | 784 | ||||||
Contingently convertible debt interest expense and dividends attributable to unvested shares | 1 | 1 | |||||||||
Net Earnings used for Diluted EPS Calc - Continuing Operations-Attributable to Bristol-Myers Squibb Company | $ | 469 | 316 | $ | 785 | ||||||
Average Common Shares Outstanding - Diluted | 2,002 | 2,002 | |||||||||
Diluted EPS - Continuing Operations Attributable to Bristol-Myers Squibb Company | $ | 0.23 | 0.16 | $ | 0.39 | ||||||
Net Earnings from Continuing Operations Attributable to Bristol-Myers Squibb Company as a % of sales | 10.4 | % | 7.0 | % | 17.4 | % | |||||
Effective Tax Rate | 26.8 | % | (1.7 | )% | 25.1 | % |
11
BRISTOL-MYERS SQUIBB COMPANY
RECONCILIATION OF GAAP RESULTS OF CONTINUING OPERATIONS
TO NON-GAAP RESULTS OF CONTINUING OPERATIONS
FOR THE THREE MONTHS ENDED DECEMBER 31, 2008
(Unaudited, amounts in millions except per share data)
Q4 2008 | |||||||||||
GAAP | Specified Items | Non GAAP | |||||||||
Net Sales | $ | 4,542 | — | $ | 4,542 | ||||||
Cost of products sold | 1,254 | (42 | ) | 1,212 | |||||||
Gross Profit | 3,288 | 42 | 3,330 | ||||||||
Gross margin as a % of sales | 72.4 | % | 0.9 | % | 73.3 | % | |||||
Marketing, selling and administrative | 1,098 | (45 | ) | 1,053 | |||||||
Advertising and product promotion | 356 | — | 356 | ||||||||
Total SGA | 1,454 | (45 | ) | 1,409 | |||||||
SG&A as a % of sales | 32.0 | % | (1.0 | )% | 31.0 | % | |||||
Research and development | 1,121 | (273 | ) | 848 | |||||||
R&D as a % of sales | 24.7 | % | (6.0 | )% | 18.7 | % | |||||
Operating Margins | |||||||||||
713 | 360 | 1,073 | |||||||||
Operating Margins as a % of sales | 15.7 | % | 7.9 | % | 23.6 | % | |||||
Acquired in-process research and development | — | — | — | ||||||||
Provision for restructuring, net | 151 | (151 | ) | — | |||||||
Litigation expense, net | 1 | (1 | ) | — | |||||||
Gain on sale of Imclone shares | (895 | ) | 895 | — | |||||||
Equity in net income of affiliates | (139 | ) | — | (139 | ) | ||||||
Other income, net | (159 | ) | 137 | (22 | ) | ||||||
Earnings from Continuing Operations Before Income Taxes | $ | 1,754 | (520 | ) | $ | 1,234 | |||||
Provision for income taxes | 370 | (205 | ) | 165 | |||||||
Net Earnings - Continuing Operations | $ | 1,384 | (315 | ) | $ | 1,069 | |||||
Net Earnings - Continuing Operations Attributable to Noncontrolling Interest | 265 | 265 | |||||||||
Net Earnings - Continuing Operations Attributable to Bristol-Myers Squibb Company | $ | 1,119 | (315 | ) | $ | 804 | |||||
Contingently convertible debt interest expense and dividends attributable to unvested shares | (5 | ) | (5 | ) | |||||||
Net Earnings used for Diluted EPS Calc - Continuing Operations-Attributable to Bristol-Myers Squibb Company | $ | 1,114 | (315 | ) | $ | 799 | |||||
Average Common Shares Outstanding - Diluted | 1,980 | 1,980 | |||||||||
Diluted EPS - Continuing Operations Attributable to Bristol-Myers Squibb Company | $ | 0.56 | (0.16 | ) | $ | 0.40 | |||||
Net Earnings from Continuing Operations Attributable to Bristol-Myers Squibb Company as a % of sales | 24.6 | % | (6.9 | )% | 17.7 | % | |||||
Effective Tax Rate | 21.1 | % | (7.7 | )% | 13.4 | % |
12
BRISTOL-MYERS SQUIBB COMPANY
RECONCILIATION OF GAAP RESULTS OF CONTINUING OPERATIONS
TO NON-GAAP RESULTS OF CONTINUING OPERATIONS
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2008
(Unaudited, amounts in millions except per share data)
DECEMBER YTD 2008 | |||||||||||
GAAP | Specified Items | Non GAAP | |||||||||
Net Sales | $ | 17,715 | — | $ | 17,715 | ||||||
Cost of products sold | 5,316 | (249 | ) | 5,067 | |||||||
Gross Profit | 12,399 | 249 | 12,648 | ||||||||
Gross margin as a % of sales | 70.0 | % | 1.4 | % | 71.4 | % | |||||
Marketing, selling and administrative | 4,140 | (109 | ) | 4,031 | |||||||
Advertising and product promotion | 1,181 | — | 1,181 | ||||||||
Total SGA | 5,321 | (109 | ) | 5,212 | |||||||
SG&A as a % of sales | 30.0 | % | (0.6 | )% | 29.4 | % | |||||
Research and development | 3,512 | (361 | ) | 3,151 | |||||||
R&D as a % of sales | 19.8 | % | (2.0 | )% | 17.8 | % | |||||
Operating Margins | |||||||||||
3,566 | 719 | 4,285 | |||||||||
Operating Margins as a % of sales | 20.1 | % | 4.1 | % | 24.2 | % | |||||
Acquired in-process research and development | 32 | (32 | ) | — | |||||||
Provision for restructuring, net | 215 | (215 | ) | — | |||||||
Litigation expense, net | 33 | (33 | ) | ||||||||
Gain on sale of Imclone shares | (895 | ) | 895 | — | |||||||
Equity in net income of affiliates | (617 | ) | — | (617 | ) | ||||||
Other income, net | 22 | (119 | ) | (97 | ) | ||||||
Earnings from Continuing Operations Before Income Taxes | $ | 4,776 | 223 | $ | 4,999 | ||||||
Provision for income taxes | 1,090 | (55 | ) | 1,035 | |||||||
Net Earnings - Continuing Operations | $ | 3,686 | 278 | $ | 3,964 | ||||||
Net Earnings - Continuing Operations Attributable to Noncontrolling Interest | 989 | 989 | |||||||||
Net Earnings - Continuing Operations Attributable to Bristol-Myers Squibb Company | $ | 2,697 | 278 | $ | 2,975 | ||||||
Contingently convertible debt interest expense and dividends attributable to unvested shares | 3 | 3 | |||||||||
Net Earnings used for Diluted EPS Calc - Continuing Operations-Attributable to Bristol-Myers Squibb Company | $ | 2,700 | 278 | $ | 2,978 | ||||||
Average Common Shares Outstanding - Diluted | 1,999 | 1,999 | |||||||||
Diluted EPS - Continuing Operations Attributable to Bristol-Myers Squibb Company | $ | 1.35 | 0.14 | $ | 1.49 | ||||||
Net Earnings from Continuing Operations Attributable to Bristol-Myers Squibb Company as a % of sales | 15.2 | % | 1.6 | % | 16.8 | % | |||||
Effective Tax Rate | 22.8 | % | (2.1 | )% | 20.7 | % |
13
BRISTOL-MYERS SQUIBB COMPANY
RECONCILIATION OF GAAP RESULTS OF CONTINUING OPERATIONS
TO NON-GAAP RESULTS OF CONTINUING OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2009
(Unaudited, amounts in millions except per share data)
Q1 2009 | |||||||||||
GAAP | Specified Items | Non GAAP | |||||||||
Net Sales | $ | 4,322 | — | $ | 4,322 | ||||||
Cost of products sold | 1,165 | (34 | ) | 1,131 | |||||||
Gross Profit | 3,157 | 34 | 3,191 | ||||||||
Gross margin as a % of sales | 73.0 | % | 0.8 | % | 73.8 | % | |||||
Marketing, selling and administrative | 901 | (20 | ) | 881 | |||||||
Advertising and product promotion | 248 | — | 248 | ||||||||
Total SGA | 1,149 | (20 | ) | 1,129 | |||||||
SG&A as a % of sales | 26.6 | % | (0.5 | )% | 26.1 | % | |||||
Research and development | 908 | (145 | ) | 763 | |||||||
R&D as a % of sales | 21.0 | % | (3.3 | )% | 17.7 | % | |||||
Operating Margins | |||||||||||
1,100 | 199 | 1,299 | |||||||||
Operating Margins as a % of sales | 25.5 | % | 4.6 | % | 30.1 | % | |||||
Provision for restructuring, net | 19 | (19 | ) | — | |||||||
Litigation expense, net | 104 | (104 | ) | ||||||||
Equity in net income of affiliates | (146 | ) | — | (146 | ) | ||||||
Other income, net | (72 | ) | 49 | (23 | ) | ||||||
Earnings from Continuing Operations Before Income Taxes | $ | 1,195 | 273 | $ | 1,468 | ||||||
Provision for income taxes | 275 | 93 | 368 | ||||||||
Net Earnings - Continuing Operations | $ | 920 | 180 | $ | 1,100 | ||||||
Net Earnings - Continuing Operations Attributable to Noncontrolling Interest | 271 | 271 | |||||||||
Net Earnings - Continuing Operations Attributable to Bristol-Myers Squibb Company | $ | 649 | 180 | $ | 829 | ||||||
Contingently convertible debt interest expense and dividends attributable to unvested shares | (4 | ) | (4 | ) | |||||||
Net Earnings used for Diluted EPS Calc - Continuing Operations-Attributable to Bristol-Myers Squibb Company | $ | 645 | 180 | $ | 825 | ||||||
Average Common Shares Outstanding - Diluted | 1,981 | 1,981 | |||||||||
Diluted EPS - Continuing Operations Attributable to Bristol-Myers Squibb Company | $ | 0.33 | 0.09 | $ | 0.42 | ||||||
Net Earnings from Continuing Operations Attributable to Bristol-Myers Squibb Company as a % of sales | 15.0 | % | 4.2 | % | 19.2 | % | |||||
Effective Tax Rate | 23.0 | % | 2.1 | % | 25.1 | % |
14
BRISTOL-MYERS SQUIBB COMPANY
RECONCILIATION OF GAAP RESULTS OF CONTINUING OPERATIONS
TO NON-GAAP RESULTS OF CONTINUING OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2009
(Unaudited, amounts in millions except per share data)
Q2 2009 | |||||||||||
GAAP | Specified Items | Non GAAP | |||||||||
Net Sales | $ | 4,665 | — | $ | 4,665 | ||||||
Cost of products sold | 1,225 | (24 | ) | 1,201 | |||||||
Gross Profit | 3,440 | 24 | 3,464 | ||||||||
Gross margin as a % of sales | 73.7 | % | 0.6 | % | 74.3 | % | |||||
Marketing, selling and administrative | 922 | (25 | ) | 897 | |||||||
Advertising and product promotion | 298 | — | 298 | ||||||||
Total SGA | 1,220 | (25 | ) | 1,195 | |||||||
SG&A as a % of sales | 26.2 | % | (0.6 | )% | 25.6 | % | |||||
Research and development | 811 | (29 | ) | 782 | |||||||
R&D as a % of sales | 17.4 | % | (0.6 | )% | 16.8 | % | |||||
Operating Margins | |||||||||||
1,409 | 78 | 1,487 | |||||||||
Operating Margins as a % of sales | 30.2 | % | 1.7 | % | 31.9 | % | |||||
Provision for restructuring, net | 19 | (19 | ) | — | |||||||
Litigation expense, net | 28 | (28 | ) | ||||||||
Equity in net income of affiliates | (150 | ) | — | (150 | ) | ||||||
Other income, net | (10 | ) | (3 | ) | (13 | ) | |||||
Earnings from Continuing Operations Before Income Taxes | $ | 1,522 | 128 | $ | 1,650 | ||||||
Provision for income taxes | 353 | 42 | 395 | ||||||||
Net Earnings - Continuing Operations | $ | 1,169 | 86 | $ | 1,255 | ||||||
Net Earnings - Continuing Operations Attributable to Noncontrolling Interest | 289 | 289 | |||||||||
Net Earnings - Continuing Operations Attributable to Bristol-Myers Squibb Company | $ | 880 | 86 | $ | 966 | ||||||
Contingently convertible debt interest expense and dividends attributable to unvested shares | (5 | ) | (5 | ) | |||||||
Net Earnings used for Diluted EPS Calc - Continuing Operations-Attributable to Bristol-Myers Squibb Company | $ | 875 | 86 | $ | 961 | ||||||
Average Common Shares Outstanding - Diluted | 1,983 | 1,983 | |||||||||
Diluted EPS - Continuing Operations Attributable to Bristol-Myers Squibb Company | $ | 0.44 | 0.04 | $ | 0.48 | ||||||
Net Earnings from Continuing Operations Attributable to Bristol-Myers Squibb Company as a % of sales | 18.9 | % | 1.8 | % | 20.7 | % | |||||
Effective Tax Rate | 23.2 | % | 0.7 | % | 23.9 | % |
15
BRISTOL-MYERS SQUIBB COMPANY
RECONCILIATION OF GAAP RESULTS OF CONTINUING OPERATIONS
TO NON-GAAP RESULTS OF CONTINUING OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2009
(Unaudited, amounts in millions except per share data)
Q3 2009 | |||||||||||
GAAP | Specified Items | Non GAAP | |||||||||
Net Sales | $ | 4,788 | — | $ | 4,788 | ||||||
Cost of products sold | 1,317 | (30 | ) | 1,287 | |||||||
Gross Profit | 3,471 | 30 | 3,501 | ||||||||
Gross margin as a % of sales | 72.5 | % | 0.6 | % | 73.1 | % | |||||
Marketing, selling and administrative | 953 | (20 | ) | 933 | |||||||
Advertising and product promotion | 256 | — | 256 | ||||||||
Total SGA | 1,209 | (20 | ) | 1,189 | |||||||
SG&A as a % of sales | 25.3 | % | (0.5 | )% | 24.8 | % | |||||
Research and development | 820 | — | 820 | ||||||||
R&D as a % of sales | 17.1 | % | — | 17.1 | % | ||||||
Operating Margins | |||||||||||
1,442 | 50 | 1,492 | |||||||||
Operating Margins as a % of sales | 30.1 | % | 1.1 | % | 31.2 | % | |||||
Provision for restructuring, net | 51 | (51 | ) | — | |||||||
Litigation expense, net | — | — | |||||||||
Equity in net income of affiliates | (139 | ) | — | (139 | ) | ||||||
Other income, net | (35 | ) | 23 | (12 | ) | ||||||
Earnings from Continuing Operations Before Income Taxes | $ | 1,565 | 78 | $ | 1,643 | ||||||
Provision for income taxes | 366 | 26 | 392 | ||||||||
Net Earnings - Continuing Operations | $ | 1,199 | 52 | $ | 1,251 | ||||||
Net Earnings - Continuing Operations Attributable to Noncontrolling Interest | 307 | 307 | |||||||||
Net Earnings - Continuing Operations Attributable to Bristol-Myers Squibb Company | $ | 892 | 52 | $ | 944 | ||||||
Contingently convertible debt interest expense and dividends attributable to unvested shares | (5 | ) | (5 | ) | |||||||
Net Earnings used for Diluted EPS Calc - Continuing Operations-Attributable to Bristol-Myers Squibb Company | $ | 887 | 52 | $ | 939 | ||||||
Average Common Shares Outstanding - Diluted | 1,984 | 1,984 | |||||||||
Diluted EPS - Continuing Operations Attributable to Bristol-Myers Squibb Company | $ | 0.45 | 0.02 | $ | 0.47 | ||||||
Net Earnings from Continuing Operations Attributable to Bristol-Myers Squibb Company as a % of sales | 18.6 | % | 1.1 | % | 19.7 | % | |||||
Effective Tax Rate | 23.4 | % | 0.5 | % | 23.9 | % |
16
BRISTOL-MYERS SQUIBB COMPANY
RECONCILIATION OF GAAP RESULTS OF CONTINUING OPERATIONS
TO NON-GAAP RESULTS OF CONTINUING OPERATIONS
FOR THE THREE MONTHS ENDED DECEMBER 31, 2009
(Unaudited, amounts in millions except per share data)
Q4 2009 | |||||||||||
GAAP | Specified Items | Non GAAP | |||||||||
Net Sales | $ | 5,033 | — | $ | 5,033 | ||||||
Cost of products sold | 1,433 | (35 | ) | 1,398 | |||||||
Gross Profit | 3,600 | 35 | 3,635 | ||||||||
Gross margin as a % of sales | 71.5 | % | 0.7 | % | 72.2 | % | |||||
Marketing, selling and administrative | 1,170 | (145 | ) | 1,025 | |||||||
Advertising and product promotion | 334 | — | 334 | ||||||||
Total SGA | 1,504 | (145 | ) | 1,359 | |||||||
SG&A as a % of sales | 29.9 | % | (2.9 | )% | 27.0 | % | |||||
Research and development | 1,108 | (173 | ) | 935 | |||||||
R&D as a % of sales | 22.0 | % | (3.4 | )% | 18.6 | % | |||||
Operating Margins | |||||||||||
988 | 353 | 1,341 | |||||||||
Operating Margins as a % of sales | 19.6 | % | 7.0 | % | 26.6 | % | |||||
Provision for restructuring, net | 47 | (47 | ) | — | |||||||
Litigation expense, net | — | — | — | ||||||||
Equity in net income of affiliates | (115 | ) | — | (115 | ) | ||||||
Other income, net | (264 | ) | 246 | (18 | ) | ||||||
Earnings from Continuing Operations Before Income Taxes | $ | 1,320 | 154 | $ | 1,474 | ||||||
Provision for income taxes | 188 | 44 | 232 | ||||||||
Net Earnings - Continuing Operations | $ | 1,132 | 110 | $ | 1,242 | ||||||
Net Earnings - Continuing Operations Attributable to Noncontrolling Interest | 314 | 314 | |||||||||
Net Earnings - Continuing Operations Attributable to Bristol-Myers Squibb Company | $ | 818 | 110 | $ | 928 | ||||||
Contingently convertible debt interest expense and dividends attributable to unvested shares | (4 | ) | (4 | ) | |||||||
Net Earnings used for Diluted EPS Calc - Continuing Operations-Attributable to Bristol-Myers Squibb Company | $ | 814 | 110 | $ | 924 | ||||||
Average Common Shares Outstanding - Diluted | 1,967 | 1,967 | |||||||||
Diluted EPS - Continuing Operations Attributable to Bristol-Myers Squibb Company | $ | 0.41 | 0.06 | $ | 0.47 | ||||||
Net Earnings from Continuing Operations Attributable to Bristol-Myers Squibb Company as a % of sales | 16.3 | % | 2.1 | % | 18.4 | % | |||||
Effective Tax Rate | 14.2 | % | 1.5 | % | 15.7 | % |
17
BRISTOL-MYERS SQUIBB COMPANY
RECONCILIATION OF GAAP RESULTS OF CONTINUING OPERATIONS
TO NON-GAAP RESULTS OF CONTINUING OPERATIONS
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2009
(Unaudited, amounts in millions except per share data)
DECEMBER YTD 2009 | |||||||||||
GAAP | Specified Items | Non GAAP | |||||||||
Net Sales | $ | 18,808 | — | $ | 18,808 | ||||||
Cost of products sold | 5,140 | (123 | ) | 5,017 | |||||||
Gross Profit | 13,668 | 123 | 13,791 | ||||||||
Gross margin as a % of sales | 72.7 | % | 0.6 | % | 73.3 | % | |||||
Marketing, selling and administrative | 3,946 | (210 | ) | 3,736 | |||||||
Advertising and product promotion | 1,136 | — | 1,136 | ||||||||
Total SGA | 5,082 | (210 | ) | 4,872 | |||||||
SG&A as a % of sales | 27.0 | % | (1.1 | )% | 25.9 | % | |||||
Research and development | 3,647 | (347 | ) | 3,300 | |||||||
R&D as a % of sales | 19.4 | % | (1.9 | )% | 17.5 | % | |||||
Operating Margins | |||||||||||
4,939 | 680 | 5,619 | |||||||||
Operating Margins as a % of sales | 26.3 | % | 3.6 | % | 29.9 | % | |||||
Provision for restructuring, net | 136 | (136 | ) | — | |||||||
Litigation expense, net | 132 | (132 | ) | — | |||||||
Equity in net income of affiliates | (550 | ) | — | (550 | ) | ||||||
Other income, net | (381 | ) | 315 | (66 | ) | ||||||
Earnings from Continuing Operations Before Income Taxes | $ | 5,602 | 633 | $ | 6,235 | ||||||
Provision for income taxes | 1,182 | 205 | 1,387 | ||||||||
Net Earnings - Continuing Operations | $ | 4,420 | 428 | $ | 4,848 | ||||||
Net Earnings - Continuing Operations Attributable to Noncontrolling Interest | 1,181 | 1,181 | |||||||||
Net Earnings - Continuing Operations Attributable to Bristol-Myers Squibb Company | $ | 3,239 | 428 | $ | 3,667 | ||||||
Contingently convertible debt interest expense and dividends attributable to unvested shares | (17 | ) | (17 | ) | |||||||
Net Earnings used for Diluted EPS Calc - Continuing Operations-Attributable to Bristol-Myers Squibb Company | $ | 3,222 | 428 | $ | 3,650 | ||||||
Average Common Shares Outstanding - Diluted | 1,978 | 1,978 | |||||||||
Diluted EPS - Continuing Operations Attributable to Bristol-Myers Squibb Company | $ | 1.63 | 0.22 | $ | 1.85 | ||||||
Net Earnings from Continuing Operations Attributable to Bristol-Myers Squibb Company as a % of sales | 17.2 | % | 2.3 | % | 19.5 | % | |||||
Effective Tax Rate | 21.1 | % | 1.1 | % | 22.2 | % |
18
BRISTOL-MYERS SQUIBB COMPANY
SPECIFIED ITEMS
FOR THE THREE MONTHS ENDED DECEMBER 31, 2009 AND 2008
($ in millions)
Three months ended December 31, 2009
Cost of products sold | Marketing selling and administrative | Research and development | Provision for restructuring, net | Other (income)/ expense, net | Total | |||||||||||||||
Productivity Transformation Initiative: | ||||||||||||||||||||
Downsizing and streamlining of worldwide operations | $ | — | $ | — | $ | — | $ | 42 | $ | — | $ | 42 | ||||||||
Accelerated depreciation, asset impairment, and other shutdown costs | 29 | — | — | 5 | — | 34 | ||||||||||||||
Pension settlements/curtailments | — | — | — | — | 11 | 11 | ||||||||||||||
Process standardization implementation costs | — | 45 | — | — | — | 45 | ||||||||||||||
Gain on sale of product lines, businesses and assets | — | — | — | — | (288 | ) | (288 | ) | ||||||||||||
Total PTI | 29 | 45 | — | 47 | (277 | ) | (156 | ) | ||||||||||||
Other: | ||||||||||||||||||||
Accelerated depreciation | 6 | — | — | — | — | 6 | ||||||||||||||
BMS foundation funding initiative | — | 100 | — | — | — | 100 | ||||||||||||||
Loss on sale of investments | — | — | 31 | 31 | ||||||||||||||||
Upfront and milestone payments | — | — | 173 | — | — | 173 | ||||||||||||||
Total | $ | 35 | $ | 145 | $ | 173 | $ | 47 | $ | (246 | ) | 154 | ||||||||
Income taxes on items above | (44 | ) | ||||||||||||||||||
Decrease to Net Earnings | $ | 110 | ||||||||||||||||||
Three months ended December 31, 2008
Cost of products sold | Marketing selling and administrative | Research and development | Provision for restructuring, net | Litigation expense, net | Gain on sale of Imclone shares | Other (income)/ expense, net | Total | ||||||||||||||||||||
Productivity Transformation Initiative: | |||||||||||||||||||||||||||
Downsizing and streamlining of worldwide operations | $ | — | $ | — | $ | — | $ | 122 | $ | — | $ | — | $ | — | $ | 122 | |||||||||||
Accelerated depreciation and other shutdown costs | 6 | — | — | 20 | — | — | 8 | 34 | |||||||||||||||||||
Pension settlements/curtailments | 9 | — | — | — | — | — | 8 | 17 | |||||||||||||||||||
Process standardization implementation costs | — | 45 | — | — | — | — | — | 45 | |||||||||||||||||||
Termination of lease contracts | — | — | — | 9 | — | — | 6 | 15 | |||||||||||||||||||
Gain on sale of product lines and businesses | — | — | — | — | — | — | (159 | ) | (159 | ) | |||||||||||||||||
15 | 45 | — | 151 | — | — | (137 | ) | 74 | |||||||||||||||||||
Other: | |||||||||||||||||||||||||||
Litigation charges | — | — | �� | — | — | 1 | — | 1 | |||||||||||||||||||
Insurance Recovery | — | — | — | — | — | — | (20 | ) | (20 | ) | |||||||||||||||||
Upfront and milestone payments | — | — | 260 | — | — | — | — | 260 | |||||||||||||||||||
Asset impairment | 27 | — | 13 | — | — | — | — | 40 | |||||||||||||||||||
ARS impairment charge | — | — | — | — | — | — | 77 | 77 | |||||||||||||||||||
Debt buyback and swap terminations | — | — | — | — | — | — | (57 | ) | (57 | ) | |||||||||||||||||
Gain on sale of ImClone shares | — | — | — | — | — | (895 | ) | — | (895 | ) | |||||||||||||||||
$ | 42 | $ | 45 | $ | 273 | $ | 151 | $ | 1 | $ | (895 | ) | $ | (137 | ) | (520 | ) | ||||||||||
Income taxes on items above | 205 | ||||||||||||||||||||||||||
Increase to Net Earnings | $ | (315 | ) | ||||||||||||||||||||||||
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BRISTOL-MYERS SQUIBB COMPANY
SPECIFIED ITEMS
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2009 AND 2008
($ in millions)
Twelve months ended December 31, 2009
Cost of products sold | Marketing selling and administrative | Research and development | Provision for restructuring, net | Litigation expense, net | Other (income)/ expense, net | Total | |||||||||||||||||
Productivity Transformation Initiative: | |||||||||||||||||||||||
Downsizing and streamlining of worldwide operations | $ | — | $ | — | $ | — | $ | 122 | $ | — | $ | — | $ | 122 | |||||||||
Accelerated depreciation, asset impairment, and other shutdown costs | 109 | — | — | 14 | — | — | 123 | ||||||||||||||||
Pension settlements/curtailments | — | — | — | — | — | 36 | 36 | ||||||||||||||||
Process standardization implementation costs | — | 110 | — | — | — | — | 110 | ||||||||||||||||
Gain on sale of product lines, businesses and assets | — | — | — | — | — | (360 | ) | (360 | ) | ||||||||||||||
Total PTI | 109 | 110 | — | 136 | — | (324 | ) | 31 | |||||||||||||||
Other: | |||||||||||||||||||||||
Litigation charges | — | — | — | — | 132 | — | 132 | ||||||||||||||||
Accelerated depreciation | 6 | — | — | — | — | — | 6 | ||||||||||||||||
BMS foundation funding initiative | — | 100 | — | — | — | — | 100 | ||||||||||||||||
Loss on sale of investments | — | 31 | 31 | ||||||||||||||||||||
Upfront and milestone payments | — | — | 347 | — | — | — | 347 | ||||||||||||||||
Medarex acquisition | — | — | — | — | — | (10 | ) | (10 | ) | ||||||||||||||
Debt buyback and swap terminations | — | — | — | — | — | (7 | ) | (7 | ) | ||||||||||||||
Product liability | 8 | — | — | — | — | (5 | ) | 3 | |||||||||||||||
Total | $ | 123 | $ | 210 | $ | 347 | $ | 136 | $ | 132 | $ | (315 | ) | 633 | |||||||||
Income taxes on items above | (205 | ) | |||||||||||||||||||||
Decrease to Net Earnings | $ | 428 | |||||||||||||||||||||
Twelve months ended December 31, 2008
Cost of products sold | Marketing selling and administrative | Research and development | Acquired in-process research and development | Provision for restructuring, net | Litigation expense, net | Gain on sale of Imclone shares | Other (income)/ expense, net | Total | ||||||||||||||||||||||
Productivity Transformation Initiative: | ||||||||||||||||||||||||||||||
Downsizing and streamlining of worldwide operations | $ | — | $ | — | $ | — | $ | — | $ | 186 | $ | — | $ | — | $ | — | $ | 186 | ||||||||||||
Accelerated depreciation and other shutdown costs | 213 | — | — | — | 20 | — | — | 8 | 241 | |||||||||||||||||||||
Pension settlements/curtailments | 9 | — | — | — | — | — | — | 8 | 17 | |||||||||||||||||||||
Process standardization implementation costs | — | 109 | — | — | — | — | — | — | 109 | |||||||||||||||||||||
Gain on sale and leaseback of properties | — | — | — | — | — | — | — | (9 | ) | (9 | ) | |||||||||||||||||||
Termination of lease contracts | — | — | — | — | 9 | — | — | 6 | 15 | |||||||||||||||||||||
Gain on sale of product lines and businesses | — | — | — | — | — | — | (159 | ) | (159 | ) | ||||||||||||||||||||
222 | 109 | — | — | 215 | — | — | (146 | ) | 400 | |||||||||||||||||||||
Other: | ||||||||||||||||||||||||||||||
Litigation settlement | — | — | — | — | — | 33 | — | — | 33 | |||||||||||||||||||||
Insurance Recovery | — | — | — | — | — | — | — | (20 | ) | (20 | ) | |||||||||||||||||||
Product liability | — | — | — | — | — | — | — | 18 | 18 | |||||||||||||||||||||
Upfront and milestone payments and acquired in-process research and development | — | — | 348 | 32 | — | — | — | — | 380 | |||||||||||||||||||||
Asset impairment | 27 | — | 13 | — | — | — | — | — | 40 | |||||||||||||||||||||
ARS impairment charge | — | — | — | — | — | — | — | 324 | 324 | |||||||||||||||||||||
Debt buyback and swap terminations | — | — | — | — | — | — | — | (57 | ) | (57 | ) | |||||||||||||||||||
Gain on sale of ImClone shares | — | — | — | — | — | — | (895 | ) | — | (895 | ) | |||||||||||||||||||
$ | 249 | $ | 109 | $ | 361 | $ | 32 | $ | 215 | $ | 33 | $ | (895 | ) | $ | 119 | 223 | |||||||||||||
Income taxes on items above | 55 | |||||||||||||||||||||||||||||
Decrease to Net Earnings | $ | 278 | ||||||||||||||||||||||||||||
20
BRISTOL-MYERS SQUIBB COMPANY
SELECTED BALANCE SHEET INFORMATION
($ in millions)
March 31, 2008 | June 30, 2008 | September 30, 2008 | December 31, 2008 | March 31, 2009 | June 30, 2009 | September 30, 2009 | December 31, 2009 | |||||||||||||||||||
Cash and cash equivalents | $ | 2,443 | $ | 4,047 | $ | 7,173 | $ | 7,976 | $ | 7,832 | $ | 7,507 | $ | 6,367 | $ | 7,683 | ||||||||||
Marketable securities – current | 194 | 355 | 258 | 289 | 1,088 | 613 | 302 | 831 | ||||||||||||||||||
Marketable securities – long term | 455 | 386 | 297 | 188 | 184 | 983 | 1,202 | 1,369 | ||||||||||||||||||
Short-term borrowings | 1,781 | 1,799 | 135 | 154 | 156 | 124 | 286 | 231 | ||||||||||||||||||
Long-term debt | 4,660 | 6,021 | 6,120 | 6,585 | 6,492 | 6,235 | 6,307 | 6,130 | ||||||||||||||||||
Net (debt) / cash | $ | (3,349 | ) | $ | (3,032 | ) | $ | 1,473 | $ | 1,714 | $ | 2,456 | $ | 2,744 | $ | 1,278 | $ | 3,522 |
21
BRISTOL-MYERS SQUIBB COMPANY
2010 FULL YEAR PROJECTED DILUTED EPS FROM CONTINUING OPERATIONS
EXCLUDING PROJECTED SPECIFIED ITEMS
Full Year 2010 | ||
Projected Diluted Earnings Attributable to Shareholders per Common Share — GAAP | $1.94 to $2.04 | |
Projected Specified Items: | ||
Downsizing and streamlining of worldwide operations | 0.11 | |
Accelerated depreciation and other shutdown costs | 0.08 | |
Upfront and milestone payments and other | 0.02 | |
Total | 0.21 | |
Projected Diluted Earnings Attributable to Shareholders per Common Share—Non-GAAP | $2.15 to $2.25 | |
Revenue growth is projected in the mid single digit range.
Gross margin on a GAAP basis for the full year 2009 was 72.7%, which included specified items of $123 million and had a 0.6% adverse impact on gross margin in aggregate. On a non-GAAP basis, for the full year 2009 gross margin was 73.3%. On a non-GAAP basis, the Company projects gross margin for the full year 2010 to remain consistent with last year. There is no reasonably accessible or reliable comparable GAAP measure for this forward-looking information on gross margin. See GAAP to Non-GAAP PL Reconciliation - December YTD tab.
Research and Development expenses on a GAAP basis for the full year 2009 were $3,647 million, which included specified items of $347 million. On a non-GAAP basis, for the full year 2009 research and development expenses were $3,300 million. On a non-GAAP basis, the Company projects research and development expenses for the full year 2010 to increase in the mid to high single digit range compared to 2009. There is no reasonably accessible or reliable comparable GAAP measure for this forward-looking information on research and development. See GAAP to Non-GAAP PL Reconciliation - December YTD tab.
Marketing, selling and administrative expenses, on a GAAP basis for the full year 2009 were $3,946 million, which included specified items of $210 million. On a non-GAAP basis, for the full year 2009 marketing, selling and administrative expenses were $3,736 million. On a non-GAAP basis, the Company projects marketing, selling and administrative expenses for the full year 2010 to remain flat compared to 2009. There is no reasonably accessible or reliable comparable GAAP measure for this forward-looking information on marketing, selling and administrative expense. See GAAP to Non-GAAP PL Reconciliation - December YTD tab.
The effective tax rate on a GAAP basis for the full year 2009 was 21.1%, which included specified items of $205 million in the tax provision, and had a 1.1% impact on the effective tax rate in aggregate. On a non-GAAP basis, for the full year 2009 effective tax rate was 22.2%. On a non-GAAP basis, based on historical trends in 2009 the Company projects the annual effective tax rate between 23% and 24% for the full year 2010. There is no reasonably accessible or reliable comparable GAAP measure for this forward-looking information on the tax rate. See GAAP to Non-GAAP PL Reconciliation - December YTD tab.
The GAAP results for the full year 2010 will include specified items that may occur and impact results, including expected restructuring and other charges related to implementation the Productivity Transformation Initiative (PTI), and other expected charges associated with downsizing and streamlining worldwide operations, accelerated depreciation and upfront and milestone payments. The productivity initiative, announced in December 2007 is expected to generate approximately $2.5 billion in cost reductions and avoidance on a pre-tax basis by 2012. Costs associated with the Productivity Transformation Initiative are $1.2 billion through the end of 2009, with aggregate costs estimated to be between $1.3 billion and $1.6 billion on a pre-tax basis. This amount does not include gains realized due to sales of assets. As the PTI projects are substantially complete and the Company expects to be within the above mentioned range, the Company will no longer separately identify PTI-related specified items beginning with the first quarter of 2010. The GAAP results for the full year 2010 could also include charges and recoveries relating to significant legal proceedings, debt retirement costs and other charges related to new transactions, additional upfront and milestone payments, copromotion or alliance charges and charges for in-process research and development related to new external development transactions, gains or losses from asset disposals, other restructuring activities, impairments to marketable securities and significant tax events. For a fuller discussion of certain of the litigation and other matters that could impact full year GAAP results, as well as the use of non-GAAP financial information, see Bristol-Myers Squibb Company Reports Financial Results For The Fourth Quarter and 12 Months of 2009, January 28, 2010, including “2010 Guidance” and “Use of Non-GAAP Financial Information” therein.
The Company has previously provided guidance that it expected non-GAAP EPS to grow at a minimum of 15 percent compound annual growth rate from the 2007 base through 2010 without rebasing for the sale of the ConvaTec business. If the company meets its expected 2010 non-GAAP EPS from continuing operations guidance, it will exceed the prior 15 percent minimum three-year annual growth rate guidance. There is no reasonably accessible or reliable comparable GAAP measure for this forward-looking information on earnings per share.
22
BRISTOL-MYERS SQUIBB COMPANY
RECONCILIATION OF GAAP EARNINGS FROM CONTINUING OPERATIONS
BEFORE NONCONTROLLING INTEREST & TAXES AND GAAP PRETAX PROFIT MARGIN
TO NON-GAAP PRETAX PROFIT AND NON-GAAP PRETAX PROFIT MARGIN
FOR THE YEAR ENDED DECEMBER 31, 2009
(unaudited, dollar amounts in millions)
Net Sales | $ | 18,808 | ||
Earnings from Continuing Operations Before Noncontrolling Interest & Taxes | $ | 5,602 | ||
Earnings from Continuing Operations Before Noncontrolling Interest & Taxes as a % of Net Sales (GAAP Pretax Profit Margin) | 29.8 | % | ||
Excluding Specified Items1 | 633 | |||
Non-GAAP Earnings from Continuing Operations Before Noncontrolling Interest & Taxes Excluding Specified Items | 6,235 | |||
Noncontrolling Interest2 | 1,743 | |||
Non-GAAP Earnings from Continuing Operations Before Taxes (Pretax Profit) | $ | 4,492 | ||
Non-GAAP Earnings from Continuing Operations Before Taxes as a % of Net Sales (Pretax Profit Margin) | 23.9 | % |
1 | Please refer to the Specified Items YTD tab for detail of specified items. |
2 | Noncontrolling Interest is computed as follows: |
Noncontrolling interest, pre-tax | $ | 1,743 | |
Income taxes | 562 | ||
Noncontrolling interest, net of taxes | $ | 1,181 | |
23