Exhibit 99.2
BRISTOL-MYERS SQUIBB COMPANY
QUARTERLY TREND ANALYSIS OF SALES
($ in millions)
Net Sales
2009 | 2010 | % 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 | $ | 4,322 | $ | 4,665 | $ | 8,987 | $ | 4,788 | $ | 13,775 | $ | 5,033 | $ | 18,808 | $ | 4,807 | $ | 4,768 | $ | 9,575 | 2 | % | 7% | — | 2% | ||||||||||||||||||||||
US Pharmaceuticals | 2,766 | 2,974 | 5,740 | 3,012 | 8,752 | 3,115 | 11,867 | 3,089 | 3,105 | 6,194 | 4 | % | 8% | N/A | N/A | ||||||||||||||||||||||||||||||||
CV/Metabolics | 1,554 | 1,699 | 3,253 | 1,707 | 4,960 | 1,737 | 6,697 | 1,815 | 1,796 | 3,611 | 6 | % | 11% | N/A | N/A | ||||||||||||||||||||||||||||||||
Oncology/Virology | 627 | 638 | 1,265 | 659 | 1,924 | 689 | 2,613 | 678 | 682 | 1,360 | 7 | % | 8% | N/A | N/A | ||||||||||||||||||||||||||||||||
Neuroscience | 486 | 520 | 1,006 | 521 | 1,527 | 563 | 2,090 | 470 | 490 | 960 | -6 | % | -5% | N/A | N/A | ||||||||||||||||||||||||||||||||
Immunoscience | 99 | 117 | 216 | 125 | 341 | 126 | 467 | 126 | 137 | 263 | 17 | % | 22% | N/A | N/A | ||||||||||||||||||||||||||||||||
Intercon Pharmaceuticals | 196 | 215 | 411 | 213 | 624 | 219 | 843 | 225 | 199 | 424 | -7 | % | 3% | 1% | 4% | ||||||||||||||||||||||||||||||||
JPAC Pharmaceuticals | 326 | 372 | 698 | 394 | 1,092 | 430 | 1,522 | 371 | 403 | 774 | 8 | % | 11% | 10% | 12% | ||||||||||||||||||||||||||||||||
Emerging Markets | 166 | 174 | 340 | 203 | 543 | 210 | 753 | 203 | 201 | 404 | 16 | % | 19% | 6% | 7% | ||||||||||||||||||||||||||||||||
Europe Pharmaceuticals | 827 | 883 | 1,710 | 911 | 2,621 | 1,004 | 3,625 | 886 | 822 | 1,708 | -7 | % | — | -4% | 1% |
% of Total Sales
2009 | 2010 | 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 | % | — | — | ||||||||||||||||||||||
US Pharmaceuticals | 64.0 | % | 63.8 | % | 63.9 | % | 62.9 | % | 63.5 | % | 61.9 | % | 63.1 | % | 64.3 | % | 65.1 | % | 64.7 | % | 130 | 80 | ||||||||||||||||||||||
CV/Metabolics | 36.0 | % | 36.4 | % | 36.2 | % | 35.6 | % | 36.0 | % | 34.5 | % | 35.6 | % | 37.8 | % | 37.6 | % | 37.7 | % | 120 | 150 | ||||||||||||||||||||||
Oncology/Virology | 14.5 | % | 13.7 | % | 14.1 | % | 13.8 | % | 14.0 | % | 13.7 | % | 13.9 | % | 14.1 | % | 14.3 | % | 14.2 | % | 60 | 10 | ||||||||||||||||||||||
Neuroscience | 11.2 | % | 11.2 | % | 11.2 | % | 10.9 | % | 11.1 | % | 11.2 | % | 11.1 | % | 9.8 | % | 10.3 | % | 10.0 | % | (90 | ) | (120 | ) | ||||||||||||||||||||
Immunoscience | 2.3 | % | 2.5 | % | 2.4 | % | 2.6 | % | 2.4 | % | 2.5 | % | 2.5 | % | 2.6 | % | 2.9 | % | 2.8 | % | 40 | 40 | ||||||||||||||||||||||
Intercon Pharmaceuticals | 4.5 | % | 4.6 | % | 4.6 | % | 4.4 | % | 4.5 | % | 4.4 | % | 4.5 | % | 4.7 | % | 4.2 | % | 4.4 | % | (40 | ) | (20 | ) | ||||||||||||||||||||
JPAC Pharmaceuticals | 7.5 | % | 8.0 | % | 7.8 | % | 8.2 | % | 7.9 | % | 8.5 | % | 8.1 | % | 7.7 | % | 8.5 | % | 8.1 | % | 50 | 30 | ||||||||||||||||||||||
Emerging Markets | 3.8 | % | 3.7 | % | 3.8 | % | 4.2 | % | 3.9 | % | 4.2 | % | 4.0 | % | 4.2 | % | 4.2 | % | 4.2 | % | 50 | 40 | ||||||||||||||||||||||
Europe Pharmaceuticals | 19.1 | % | 18.9 | % | 19.0 | % | 19.0 | % | 19.0 | % | 19.9 | % | 19.3 | % | 18.4 | % | 17.2 | % | 17.8 | % | (170 | ) | (120 | ) |
1
BRISTOL-MYERS SQUIBB COMPANY
SALES AND COMPOSITION OF CHANGE IN SALES FOR CONTINUING OPERATIONS
FOR THE PERIOD ENDED JUNE 30, 2010
($ in millions)
QUARTER-TO-DATE
US | Non-US | Total | |||||||||
Price Increases/(Decreases) | 3% | -3% | 1% | ||||||||
Foreign Exchange | — | 1% | — | ||||||||
Volume | 1% | — | 1% | ||||||||
Total Change | 4% | -2% | 2% | ||||||||
Total 2010 Period to Date Sales | $ | 3,105 | $ | 1,663 | $ | 4,768 | |||||
Total 2009 Period to Date Sales | $ | 2,974 | $ | 1,691 | $ | 4,665 |
YEAR-TO-DATE
US | Non-US | Total | ||||||||
Price Increases/(Decreases) | 5% | -2% | 2% | |||||||
Foreign Exchange | — | 4% | 2% | |||||||
Volume | 3% | 2% | 3% | |||||||
Total Change | 8% | 4% | 7% | |||||||
Total 2010 Period to Date Sales | $ | 6,194 | $ | 3,381 | $ | 9,575 | ||||
Total 2009 Period to Date Sales | $ | 5,740 | $ | 3,247 | $ | 8,987 |
2
BRISTOL-MYERS SQUIBB COMPANY
CONSOLIDATED STATEMENT OF EARNINGS FROM CONTINUING OPERATIONS
($ in millions, except per share amounts)
2009 | 2010 | % 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 | $ | 4,322 | $ | 4,665 | $ | 8,987 | $ | 4,788 | $ | 13,775 | $ | 5,033 | $ | 18,808 | $ | 4,807 | $ | 4,768 | $ | 9,575 | 2% | 7% | ||||||||||||||||||||||||||||||
Cost of products sold | 1,165 | 1,225 | 2,390 | 1,317 | 3,707 | 1,433 | 5,140 | 1,306 | 1,277 | 2,583 | 4% | 8% | ||||||||||||||||||||||||||||||||||||||||
Marketing, selling and administrative | 901 | 922 | 1,823 | 953 | 2,776 | 1,170 | 3,946 | 900 | 894 | 1,794 | -3% | -2% | ||||||||||||||||||||||||||||||||||||||||
Advertising and product promotion | 248 | 298 | 546 | 256 | 802 | 334 | 1,136 | 212 | 263 | 475 | -12% | -13% | ||||||||||||||||||||||||||||||||||||||||
Research and development | 908 | 811 | 1,719 | 820 | 2,539 | 1,108 | 3,647 | 910 | 822 | 1,732 | 1% | 1% | ||||||||||||||||||||||||||||||||||||||||
Provision for restructuring, net | 19 | 19 | 38 | 51 | 89 | 47 | 136 | 11 | 24 | 35 | 26% | -8% | ||||||||||||||||||||||||||||||||||||||||
Litigation expense, net | 104 | 28 | 132 | — | 132 | — | 132 | — | — | — | -100% | 100% | ||||||||||||||||||||||||||||||||||||||||
Equity in net income of affiliates | (146 | ) | (150 | ) | (296 | ) | (139 | ) | (435 | ) | (115 | ) | (550 | ) | (97 | ) | (85 | ) | (182 | ) | -43% | -39% | ||||||||||||||||||||||||||||||
Other (income)/expense, net | (72 | ) | (10 | ) | (82 | ) | (35 | ) | (117 | ) | (264 | ) | (381 | ) | 113 | (19 | ) | 94 | 90% | * | ||||||||||||||||||||||||||||||||
Total expenses | 3,127 | 3,143 | 6,270 | 3,223 | 9,493 | 3,713 | 13,206 | 3,355 | 3,176 | 6,531 | 1% | 4% | ||||||||||||||||||||||||||||||||||||||||
Earnings from Continuing Operations Before Income Taxes | $ | 1,195 | $ | 1,522 | $ | 2,717 | $ | 1,565 | $ | 4,282 | $ | 1,320 | $ | 5,602 | $ | 1,452 | $ | 1,592 | $ | 3,044 | 5% | 12% | ||||||||||||||||||||||||||||||
Provision for income taxes | 275 | 353 | 628 | 366 | 994 | 188 | 1,182 | 351 | 324 | 675 | -8% | 7% | ||||||||||||||||||||||||||||||||||||||||
Net Earnings from Continuing Operations | $ | 920 | $ | 1,169 | $ | 2,089 | $ | 1,199 | $ | 3,288 | $ | 1,132 | $ | 4,420 | $ | 1,101 | $ | 1,268 | $ | 2,369 | 8% | 13% | ||||||||||||||||||||||||||||||
Net Earnings Attributable to Noncontrolling Interest | 271 | 289 | 560 | 307 | 867 | 314 | 1,181 | 358 | 341 | 699 | 18% | 25% | ||||||||||||||||||||||||||||||||||||||||
Net Earnings from Continuing Operations Attributable to BMS Company | $ | 649 | $ | 880 | $ | 1,529 | $ | 892 | $ | 2,421 | $ | 818 | $ | 3,239 | $ | 743 | $ | 927 | $ | 1,670 | 5% | 9% | ||||||||||||||||||||||||||||||
Contingently convertible debt interest expense and dividends attributable to unvested shares | (4 | ) | (5 | ) | (8 | ) | (5 | ) | (13 | ) | (4 | ) | (17 | ) | (3 | ) | (3 | ) | (7 | ) | -40% | -13% | ||||||||||||||||||||||||||||||
Net Earnings used for Diluted EPS Calc - Continuing Operations-Attributable to BMS Company | $ | 645 | $ | 875 | $ | 1,521 | $ | 887 | $ | 2,408 | $ | 814 | $ | 3,222 | $ | 740 | $ | 924 | $ | 1,663 | 6% | 9% | ||||||||||||||||||||||||||||||
Diluted Earnings Attributable to BMS Company per Common Share** - Continuing Operations | $ | 0.33 | $ | 0.44 | $ | 0.77 | $ | 0.45 | $ | 1.21 | $ | 0.41 | $ | 1.63 | $ | 0.43 | $ | 0.53 | $ | 0.96 | 20% | 25% | ||||||||||||||||||||||||||||||
Average Common Shares Outstanding - Diluted | 1,981 | 1,983 | 1,982 | 1,984 | 1,982 | 1,967 | 1,978 | 1,725 | 1,728 | 1,727 | -13% | -13% | ||||||||||||||||||||||||||||||||||||||||
Dividends declared per common share | $ | 0.31 | $ | 0.31 | $ | 0.62 | $ | 0.31 | $ | 0.93 | $ | 0.32 | $ | 1.25 | $ | 0.32 | $ | 0.32 | $ | 0.64 | 3% | 3% |
% of Net Sales | ||||||||||||||||||||||||||||||||||||||||||
2009 | 2010 | 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 | 73.0% | 73.7% | 73.4% | 72.5% | 73.1% | 71.5% | 72.7% | 72.8% | 73.2% | 73.0% | (50) | (40) | ||||||||||||||||||||||||||||||
Cost of products sold | 27.0% | 26.3% | 26.6% | 27.5% | 26.9% | 28.5% | 27.3% | 27.2% | 26.8% | 27.0% | 50 | 40 | ||||||||||||||||||||||||||||||
Marketing, selling and administrative | 20.8% | 19.8% | 20.3% | 19.9% | 20.2% | 23.2% | 21.0% | 18.7% | 18.8% | 18.7% | (100) | (160) | ||||||||||||||||||||||||||||||
Advertising and product promotion | 5.7% | 6.4% | 6.1% | 5.3% | 5.8% | 6.6% | 6.0% | 4.4% | 5.5% | 5.0% | (90) | (110) | ||||||||||||||||||||||||||||||
Research and development | 21.0% | 17.4% | 19.1% | 17.1% | 18.4% | 22.0% | 19.4% | 18.9% | 17.2% | 18.1% | (20) | (100) | ||||||||||||||||||||||||||||||
Total expenses | 72.4% | 67.4% | 69.8% | 67.3% | 68.9% | 73.8% | 70.2% | 69.8% | 66.6% | 68.2% | (80) | (160) | ||||||||||||||||||||||||||||||
Earnings from Continuing Operations Before Income Taxes | 27.6% | 32.6% | 30.2% | 32.7% | 31.1% | 26.2% | 29.8% | 30.2% | 33.4% | 31.8% | 80 | 160 | ||||||||||||||||||||||||||||||
Net Earnings from Continuing Operations Attributable to BMS Company | 15.0% | 18.9% | 17.0% | 18.6% | 17.6% | 16.3% | 17.2% | 15.5% | 19.4% | 17.4% | 50 | 40 | ||||||||||||||||||||||||||||||
Other Ratios | ||||||||||||||||||||||||||||||||||||||||||
Effective Tax Rate | 23.0% | 23.2% | 23.1% | 23.4% | 23.2% | 14.2% | 21.1% | 24.2% | 20.4% | 22.2% | (280) | (90) | ||||||||||||||||||||||||||||||
Other (Income)/Expense, net | ||||||||||||||||||||||||||||||||||||||||||
2009 | 2010 | % 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 | $ | 52 | $ | 42 | $ | 94 | $ | 47 | $ | 141 | $ | 43 | $ | 184 | $ | 33 | $ | 32 | $ | 65 | -24% | -31% | ||||||||||||||||||||
Interest income | (13) | (14) | (27) | (13) | (40) | (14) | (54) | (15) | (16) | (31) | 14% | 15% | ||||||||||||||||||||||||||||||
Impairment and loss on sale of manufacturing operations | — | — | — | — | — | — | — | 200 | 15 | 215 | — | — | ||||||||||||||||||||||||||||||
(Gain)/Loss on debt buyback and termination of interest rate swap agreements | — | (11) | (11) | 4 | (7) | — | (7) | — | — | — | -100% | -100% | ||||||||||||||||||||||||||||||
Net Foreign exchange transaction (gains)/losses | (13) | 17 | 4 | 13 | 17 | (15) | 2 | (16) | (16) | (32) | 194% | * | ||||||||||||||||||||||||||||||
Gain on sale of product lines, businesses and assets | (44) | (11) | (55) | (17) | (72) | (288) | (360) | (10) | (5) | (15) | -55% | -73% | ||||||||||||||||||||||||||||||
Medarex acquisition | — | — | — | (10) | (10) | — | (10) | — | — | — | — | — | ||||||||||||||||||||||||||||||
Net royalty income and amortization of upfront licensing and milestone payments received from alliance partners | (35) | (34) | (69) | (50) | (119) | (29) | (148) | (50) | (44) | (94) | 29% | 36% | ||||||||||||||||||||||||||||||
Pension curtailment and settlement charges | — | 25 | 25 | — | 25 | 18 | 43 | — | 14 | 14 | -44% | -44% | ||||||||||||||||||||||||||||||
Other | (19) | (24) | (43) | (9) | (52) | 21 | (31) | (29) | 1 | (28) | -104% | -35% | ||||||||||||||||||||||||||||||
$ | (72) | $ | (10) | $ | (82) | $ | (35) | $ | (117) | $ | (264) | $ | (381) | 113 | $ | (19) | $ | 94 | 90% | * | ||||||||||||||||||||||
* | 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 JUNE 30, 2010
(Unaudited, amounts in millions except per share data)
QUARTER-TO-DATE
2010 | 2009 | Growth $ | Growth % | Favorable / (Unfavorable) FX Impact $ * | 2010 Excluding FX | Favorable / (Unfavorable) FX Impact % * | Growth % Excluding FX | |||||||||||||||
Net sales | $ | 4,768 | $ | 4,665 | 103 | 2 | % | 14 | 4,754 | — | 2 | % | ||||||||||
Marketing, selling and administrative(a) | 894 | 922 | (28 | ) | -3 | % | 3 | 897 | — | -3 | % | |||||||||||
Marketing, selling and administrative excluding specified items(b) | 888 | 897 | (9 | ) | -1 | % | 2 | 890 | — | -1 | % | |||||||||||
Advertising and product promotion | 263 | 298 | (35 | ) | -12 | % | (1 | ) | 262 | — | -12 | % | ||||||||||
Research and development | 822 | 811 | 11 | 1 | % | 1 | 823 | — | 1 | % | ||||||||||||
Research and development excluding specified items(b) | 805 | 782 | 23 | 3 | % | 1 | 806 | — | 3 | % | ||||||||||||
(a) General and administrative | 335 | 339 | (4 | ) | -1 | % | (1 | ) | 334 | — | -1 | % | ||||||||||
General and administrative excluding specified items(c) | 329 | 314 | 15 | 5 | % | (1 | ) | 328 | — | 5 | % | |||||||||||
(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 of General and administrative GAAP to Non-GAAP figures: |
| |||||||||||||||||||||
2010 | 2009 | |||||||||||||||||||||
General and administrative | 335 | 339 | ||||||||||||||||||||
Specified Items: | ||||||||||||||||||||||
Process standardization implementation costs | 6 | 25 | ||||||||||||||||||||
General and administrative excluding specified items | 329 | 314 | ||||||||||||||||||||
YEAR-TO-DATE | . | |||||||||||||||||||||
2010 | 2009 | Growth $ | Growth % | Favorable / (Unfavorable) FX Impact $ * | 2010 Excluding FX | Favorable / (Unfavorable) FX Impact % * | Growth % Excluding FX | |||||||||||||||
Net sales | $ | 9,575 | $ | 8,987 | 588 | 7% | 145 | 9,430 | 2% | 5% | ||||||||||||
Marketing, selling and administrative(a) | 1,794 | 1,823 | (29 | ) | -2% | (26 | ) | 1,768 | -1% | -3% | ||||||||||||
Marketing, selling and administrative excluding specified items(b) | 1,775 | 1,778 | (3 | ) | — | (26 | ) | 1,749 | -1% | -1% | ||||||||||||
Advertising and product promotion | 475 | 546 | (71 | ) | -13% | (7 | ) | 468 | -1% | -14% | ||||||||||||
Research and development | 1,732 | 1,719 | 13 | 1% | (12 | ) | 1,720 | -1% | — | |||||||||||||
Research and development excluding specified items(b) | 1,660 | 1,545 | 115 | 7% | (13 | ) | 1,647 | -1% | 6% | |||||||||||||
(a) General and administrative | 678 | 671 | 7 | 1% | (9 | ) | 669 | -1% | — | |||||||||||||
General and administrative excluding specified items(c) | 659 | 626 | 33 | 5% | (9 | ) | 650 | -1% | 4% | |||||||||||||
(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. |
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(c) The following table provides a reconciliation table of General and administrative GAAP to Non-GAAP figures: |
| |||||||||||||||||||||
2010 | 2009 | |||||||||||||||||||||
General and administrative | 678 | 671 | ||||||||||||||||||||
Specified Items: | ||||||||||||||||||||||
Process standardization implementation costs | 19 | 45 | ||||||||||||||||||||
General and administrative excluding specified items | 659 | 626 | ||||||||||||||||||||
* | 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 JUNE 30, 2010
(Unaudited, amounts in millions except per share data)
QUARTER-TO-DATE
2010 | 2009 | Growth $ | Growth % | Favorable / (Unfavorable) FX Impact $ * | 2010 Excluding FX | Favorable / (Unfavorable) FX Impact % * | Growth % Excluding FX | ||||||||||
Plavix | 1,627 | 1,539 | 88 | 6% | 8 | 1,619 | — | 6% | |||||||||
Avapro/Avalide | 307 | 313 | (6 | ) | -2% | 5 | 302 | 1% | -3% | ||||||||
Abilify | 633 | 643 | (10 | ) | -2% | (4) | 637 | -1% | -1% | ||||||||
Reyataz | 357 | 331 | 26 | 8% | (3) | 360 | -1% | 9% | |||||||||
Sustiva Franchise | 331 | 312 | 19 | 6% | (4) | 335 | -1% | 7% | |||||||||
Baraclude | 223 | 179 | 44 | 25% | 4 | 219 | 2% | 23% | |||||||||
Orencia | 178 | 148 | 30 | 20% | — | 178 | — | 20% | |||||||||
Erbitux | 172 | 173 | (1 | ) | -1% | — | 172 | — | -1% | ||||||||
Sprycel | 132 | 107 | 25 | 23% | — | 132 | — | 23% | |||||||||
Ixempra | 29 | 29 | — | — | — | 29 | — | — | |||||||||
Onglyza | 28 | — | 28 | N/A | — | 28 | N/A | N/A |
YEAR-TO-DATE
2010 | 2009 | Growth $ | Growth % | Favorable / (Unfavorable) FX Impact $ * | 2010 Excluding FX | Favorable / (Unfavorable) FX Impact % * | Growth % Excluding FX | |||||||||
Plavix | 3,293 | 2,974 | 319 | 11% | 26 | 3,267 | 1% | 10% | ||||||||
Avapro/Avalide | 621 | 615 | 6 | 1% | 19 | 602 | 3% | -2% | ||||||||
Abilify | 1,250 | 1,232 | 18 | 1% | 5 | 1,245 | — | 1% | ||||||||
Reyataz | 730 | 653 | 77 | 12% | 9 | 721 | 1% | 11% | ||||||||
Sustiva Franchise | 666 | 604 | 62 | 10% | 4 | 662 | 1% | 9% | ||||||||
Baraclude | 439 | 331 | 108 | 33% | 14 | 425 | 4% | 29% | ||||||||
Orencia | 347 | 272 | 75 | 28% | 3 | 344 | 1% | 27% | ||||||||
Erbitux | 338 | 337 | 1 | — | — | 338 | — | — | ||||||||
Sprycel | 263 | 195 | 68 | 35% | 8 | 255 | 4% | 31% | ||||||||
Ixempra | 58 | 53 | 5 | 9% | — | 58 | — | 9% | ||||||||
Onglyza | 38 | — | 38 | N/A | — | 38 | 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)
2009 | 2010 | % 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 | 4,322 | 4,665 | 8,987 | 4,788 | 13,775 | 5,033 | 18,808 | 4,807 | 4,768 | 9,575 | 2% | 7% | — | 2% | ||||||||||||||||||||||
Cardiovascular | 1,892 | 2,050 | 3,942 | 2,055 | 5,997 | 2,118 | 8,115 | 2,129 | 2,069 | 4,198 | 1% | 6% | 1% | 1% | ||||||||||||||||||||||
Plavix | 1,435 | 1,539 | 2,974 | 1,554 | 4,528 | 1,618 | 6,146 | 1,666 | 1,627 | 3,293 | 6% | 11% | 1% | 1% | ||||||||||||||||||||||
Avapro/Avalide | 302 | 313 | 615 | 329 | 944 | 339 | 1,283 | 314 | 307 | 621 | -2% | 1% | 1% | 3% | ||||||||||||||||||||||
Virology | 794 | 848 | 1,642 | 890 | 2,532 | 981 | 3,513 | 945 | 929 | 1,874 | 10% | 14% | — | 2% | ||||||||||||||||||||||
Reyataz | 322 | 331 | 653 | 360 | 1,013 | 388 | 1,401 | 373 | 357 | 730 | 8% | 12% | -1% | 1% | ||||||||||||||||||||||
Sustiva Franchise(a) | 292 | 312 | 604 | 315 | 919 | 358 | 1,277 | 335 | 331 | 666 | 6% | 10% | -1% | 1% | ||||||||||||||||||||||
Baraclude | 152 | 179 | 331 | 191 | 522 | 212 | 734 | 216 | 223 | 439 | 25% | 33% | 2% | 4% | ||||||||||||||||||||||
Oncology | 407 | 450 | 857 | 447 | 1,304 | 437 | 1,741 | 435 | 444 | 879 | -1% | 3% | 1% | 2% | ||||||||||||||||||||||
Erbitux | 164 | 173 | 337 | 179 | 516 | 167 | 683 | 166 | 172 | 338 | -1% | — | — | — | ||||||||||||||||||||||
Sprycel | 88 | 107 | 195 | 107 | 302 | 119 | 421 | 131 | 132 | 263 | 23% | 35% | — | 4% | ||||||||||||||||||||||
Ixempra | 24 | 29 | 53 | 28 | 81 | 28 | 109 | 29 | 29 | 58 | — | 9% | — | — | ||||||||||||||||||||||
Neuroscience | 621 | 660 | 1,281 | 668 | 1,949 | 727 | 2,676 | 635 | 650 | 1,285 | -2% | — | — | 1% | ||||||||||||||||||||||
Abilify(b) | 589 | 643 | 1,232 | 653 | 1,885 | 707 | 2,592 | 617 | 633 | 1,250 | -2% | 1% | -1% | — | ||||||||||||||||||||||
Immunoscience | 124 | 148 | 272 | 162 | 434 | 168 | 602 | 169 | 178 | 347 | 20% | 28% | — | 1% | ||||||||||||||||||||||
Orencia | 124 | 148 | 272 | 162 | 434 | 168 | 602 | 169 | 178 | 347 | 20% | 28% | — | 1% | ||||||||||||||||||||||
Metabolics | 25 | 36 | 61 | 52 | 113 | 30 | 143 | 37 | 55 | 92 | 53% | 51% | -1% | — | ||||||||||||||||||||||
Onglyza | — | — | — | 20 | 20 | 4 | 24 | 10 | 28 | 38 | 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)
2009 | 2010 | % 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 | 2,766 | 2,974 | 5,740 | 3,012 | 8,752 | 3,115 | 11,867 | 3,089 | 3,105 | 6,194 | 4% | 8% | ||||||||||||||||||||||||
Cardiovascular | 1,515 | 1,652 | 3,167 | 1,650 | 4,817 | 1,693 | 6,510 | 1,770 | 1,707 | 3,477 | 3% | 10% | ||||||||||||||||||||||||
Plavix | 1,296 | 1,393 | 2,689 | 1,406 | 4,095 | 1,461 | 5,556 | 1,531 | 1,496 | 3,027 | 7% | 13% | -1% | 1% | ||||||||||||||||||||||
Avapro/Avalide | 173 | 179 | 352 | 186 | 538 | 184 | 722 | 186 | 170 | 356 | -5% | 1% | -17% | -15% | ||||||||||||||||||||||
Virology | 406 | 404 | 810 | 424 | 1,234 | 466 | 1,700 | 445 | 441 | 886 | 9% | 9% | ||||||||||||||||||||||||
Reyataz | 176 | 169 | 345 | 186 | 531 | 196 | 727 | 186 | 185 | 371 | 9% | 8% | 6% | 7% | ||||||||||||||||||||||
Sustiva Franchise (a) | 190 | 194 | 384 | 195 | 579 | 224 | 803 | 214 | 213 | 427 | 10% | 11% | 10% | 10% | ||||||||||||||||||||||
Baraclude | 36 | 39 | 75 | 41 | 116 | 44 | 160 | 42 | 42 | 84 | 8% | 12% | 15% | 14% | ||||||||||||||||||||||
Oncology | 218 | 233 | 451 | 233 | 684 | 219 | 903 | 233 | 239 | 472 | 3% | 5% | ||||||||||||||||||||||||
Erbitux | 162 | 171 | 333 | 175 | 508 | 163 | 671 | 163 | 168 | 331 | -2% | -1% | N/A | N/A | ||||||||||||||||||||||
Sprycel | 30 | 33 | 63 | 28 | 91 | 32 | 123 | 38 | 42 | 80 | 27% | 27% | 7% | 7% | ||||||||||||||||||||||
Ixempra | 22 | 26 | 48 | 26 | 74 | 25 | 99 | 25 | 26 | 51 | — | 6% | N/A | N/A | ||||||||||||||||||||||
Neuroscience | 491 | 513 | 1,004 | 520 | 1,524 | 566 | 2,090 | 473 | 494 | 967 | -4% | -4% | ||||||||||||||||||||||||
Abilify(b) | 481 | 518 | 999 | 520 | 1,519 | 563 | 2,082 | 470 | 491 | 961 | -5% | -4% | 5% | 7% | ||||||||||||||||||||||
Immunoscience | 99 | 116 | 215 | 126 | 341 | 126 | 467 | 126 | 137 | 263 | 18% | 22% | ||||||||||||||||||||||||
Orencia | 99 | 116 | 215 | 126 | 341 | 126 | 467 | 126 | 137 | 263 | 18% | 22% | N/A | N/A | ||||||||||||||||||||||
Metabolics | 11 | 21 | 32 | 36 | 68 | 12 | 80 | 16 | 30 | 46 | 43% | 44% | ||||||||||||||||||||||||
Onglyza | — | — | — | 20 | 20 | 2 | 22 | 6 | 23 | 29 | N/A | N/A | N/A | N/A |
* | In excess of +/- 200% |
** | The data is provided by Wolters Kluwer Health (WK), except for SPRYCEL, and based on the Source Prescription Audit which is a product of WK’s own recordkeeping and projection processes. As such, the data is subject to the inherent limitations of estimates based on sampling and may include a margin of error. The change in SPRYCEL demand is calculated based upon tablets sold though retail and mail order channels based upon data obtained from the IMS Health (IMS) National Sales Perspectives Audit, which is a product of IMS’s own recordkeeping and projection processes. As such, the data is subject to the inherent limitations of estimates based on sampling and may include a margin of error. ERBITUX, IXEMPRA and ORENCIA are parenterally administered products and do not have prescription-level data as physicians do not write prescriptions for these products. |
(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. The following table provides a reconciliation of the impact for extending the term of the commercialization and manufacturing agreement and U.S. healthcare reform. |
2009 | 2010 | % Change | ||||||||||
2nd Qtr | 6 Months | 2nd Qtr | 6 Months | Qtr vs. Qtr | YTD vs. YTD | |||||||
Abilify Net Sales As Reported | 518 | 999 | 491 | 961 | -5% | -4% | ||||||
Contractual share change from 65% to 58% | — | — | 59 | 116 | N/A | N/A | ||||||
Incremental amortization of extension payment | — | — | — | 16 | N/A | N/A | ||||||
U.S. healthcare reform | — | — | 27 | 54 | N/A | N/A | ||||||
Abilify Net Sales - Adjusted | 518 | 999 | 577 | 1,147 | 11% | 15% | ||||||
7
BRISTOL-MYERS SQUIBB COMPANY
INTERNATIONAL NET SALES FROM CONTINUING OPERATIONS BY PRODUCT
QUARTERLY SALES TREND ANALYSIS
($ in millions)
2009 | 2010 | % 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 | 1,556 | 1,691 | 3,247 | 1,776 | 5,023 | 1,918 | 6,941 | 1,718 | 1,663 | 3,381 | -2% | 4% | 1% | 4% | ||||||||||||||||||||||
Cardiovascular | 377 | 398 | 775 | 405 | 1,180 | 425 | 1,605 | 359 | 362 | 721 | -9% | -7% | 3% | 6% | ||||||||||||||||||||||
Plavix | 139 | 146 | 285 | 148 | 433 | 157 | 590 | 135 | 131 | 266 | -10% | -7% | 5% | 8% | ||||||||||||||||||||||
Avapro/Avalide | 129 | 134 | 263 | 143 | 406 | 155 | 561 | 128 | 137 | 265 | 2% | 1% | 3% | 7% | ||||||||||||||||||||||
Virology | 388 | 444 | 832 | 466 | 1,298 | 515 | 1,813 | 500 | 488 | 988 | 10% | 19% | -1% | 4% | ||||||||||||||||||||||
Reyataz | 146 | 162 | 308 | 174 | 482 | 192 | 674 | 187 | 172 | 359 | 6% | 17% | -2% | 3% | ||||||||||||||||||||||
Sustiva Franchise(a) | 102 | 118 | 220 | 120 | 340 | 134 | 474 | 121 | 118 | 239 | — | 9% | -4% | 2% | ||||||||||||||||||||||
Baraclude | 116 | 140 | 256 | 150 | 406 | 168 | 574 | 174 | 181 | 355 | 29% | 39% | 3% | 6% | ||||||||||||||||||||||
Oncology | 189 | 217 | 406 | 214 | 620 | 218 | 838 | 202 | 205 | 407 | -6% | — | 2% | 4% | ||||||||||||||||||||||
Erbitux | 2 | 2 | 4 | 4 | 8 | 4 | 12 | 3 | 4 | 7 | 100% | 75% | 9% | 9% | ||||||||||||||||||||||
Sprycel | 58 | 74 | 132 | 79 | 211 | 87 | 298 | 93 | 90 | 183 | 22% | 39% | 0% | 6% | ||||||||||||||||||||||
Ixempra | 2 | 3 | 5 | 2 | 7 | 3 | 10 | 4 | 3 | 7 | — | 40% | 4% | 4% | ||||||||||||||||||||||
Neuroscience | 130 | 147 | 277 | 148 | 425 | 161 | 586 | 162 | 156 | 318 | 6% | 15% | -2% | 4% | ||||||||||||||||||||||
Abilify(b) | 108 | 125 | 233 | 133 | 366 | 144 | 510 | 147 | 142 | 289 | 14% | 24% | -2% | 3% | ||||||||||||||||||||||
Immunoscience | 25 | 32 | 57 | 36 | 93 | 42 | 135 | 43 | 41 | 84 | 28% | 47% | — | 6% | ||||||||||||||||||||||
Orencia | 25 | 32 | 57 | 36 | 93 | 42 | 135 | 43 | 41 | 84 | 28% | 47% | — | 6% | ||||||||||||||||||||||
Metabolics | 14 | 15 | 29 | 16 | 45 | 18 | 63 | 21 | 25 | 46 | 67% | 59% | -2% | -1% | ||||||||||||||||||||||
Onglyza | — | — | — | — | — | 2 | 2 | 4 | 5 | 9 | 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 JUNE 30, 2010
(Unaudited, amounts in millions except per share data)
GAAP | Specified Items | Non GAAP | |||||||||
Net Sales | $ | 4,768 | — | $ | 4,768 | ||||||
Cost of products sold | 1,277 | (27 | ) | 1,250 | |||||||
Gross Profit | 3,491 | 27 | 3,518 | ||||||||
Gross profit as a % of sales | 73.2 | % | 0.6 | % | 73.8 | % | |||||
Marketing, selling and administrative | 894 | (6 | ) | 888 | |||||||
Advertising and product promotion | 263 | — | 263 | ||||||||
Total SG&A | 1,157 | (6 | ) | 1,151 | |||||||
SG&A as a % of sales | 24.3 | % | (0.2 | )% | 24.1 | % | |||||
Research and development | 822 | (17 | ) | 805 | |||||||
R&D as a % of sales | 17.2 | % | (0.3 | )% | 16.9 | % | |||||
Operating Margin | 1,512 | 50 | 1,562 | ||||||||
Operating Margin as a % of sales | 31.7 | % | 1.1 | % | 32.8 | % | |||||
Provision for restructuring, net | 24 | (24 | ) | — | |||||||
Litigation expense, net | — | — | — | ||||||||
Equity in net income of affiliates | (85 | ) | — | (85 | ) | ||||||
Other income, net | (19 | ) | (20 | ) | (39 | ) | |||||
Earnings from Continuing Operations Before Income Taxes | $ | 1,592 | 94 | $ | 1,686 | ||||||
Provision for income taxes | 324 | 77 | 401 | ||||||||
Net Earnings - Continuing Operations | $ | 1,268 | 17 | $ | 1,285 | ||||||
Net Earnings - Continuing Operations Attributable to Noncontrolling Interest | 341 | 341 | |||||||||
Net Earnings - Continuing Operations Attributable to BMS Company | $ | 927 | 17 | $ | 944 | ||||||
Contingently convertible debt interest expense and dividends attributable to unvested shares | (3 | ) | (3 | ) | |||||||
Net Earnings used for Diluted EPS Calc - Continuing Operations | |||||||||||
-Attributable to BMS Company | $ | 924 | 17 | $ | 941 | ||||||
Average Common Shares Outstanding - Diluted | 1,728 | 1,728 | |||||||||
Diluted EPS - Continuing Operations Attributable to BMS Company | $ | 0.53 | 0.01 | $ | 0.54 | ||||||
Net Earnings from Continuing Operations Attributable to BMS Company as a % of sales | 19.4 | % | 0.4 | % | 19.8 | % | |||||
Effective Tax Rate | 20.4 | % | 3.4 | % | 23.8 | % |
9
BRISTOL-MYERS SQUIBB COMPANY
RECONCILIATION OF GAAP RESULTS OF CONTINUING OPERATIONS
TO NON-GAAP RESULTS OF CONTINUING OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2010
(Unaudited, amounts in millions except per share data)
GAAP | Specified Items | Non GAAP | |||||||||
Net Sales | $ | 9,575 | — | $ | 9,575 | ||||||
Cost of products sold | 2,583 | (58 | ) | 2,525 | |||||||
Gross Profit | 6,992 | 58 | 7,050 | ||||||||
Gross profit as a % of sales | 73.0 | % | 0.6 | % | 73.6 | % | |||||
Marketing, selling and administrative | 1,794 | (19 | ) | 1,775 | |||||||
Advertising and product promotion | 475 | — | 475 | ||||||||
Total SG&A | 2,269 | (19 | ) | 2,250 | |||||||
SG&A as a % of sales | 23.7 | % | (0.2 | )% | 23.5 | % | |||||
Research and development | 1,732 | (72 | ) | 1,660 | |||||||
R&D as a % of sales | 18.1 | % | (0.8 | )% | 17.3 | % | |||||
Operating Margin | 2,991 | 149 | 3,140 | ||||||||
Operating Margin as a % of sales | 31.2 | % | 1.6 | % | 32.8 | % | |||||
Provision for restructuring, net | 35 | (35 | ) | — | |||||||
Litigation expense, net | — | — | — | ||||||||
Equity in net income of affiliates | (182 | ) | — | (182 | ) | ||||||
Other income, net | 94 | (220 | ) | (126 | ) | ||||||
Earnings from Continuing Operations Before Income Taxes | $ | 3,044 | 404 | $ | 3,448 | ||||||
Provision for income taxes | 675 | 163 | 838 | ||||||||
Net Earnings - Continuing Operations | $ | 2,369 | 241 | $ | 2,610 | ||||||
Net Earnings - Continuing Operations Attributable to Noncontrolling Interest | 699 | 699 | |||||||||
Net Earnings - Continuing Operations Attributable to BMS Company | $ | 1,670 | 241 | $ | 1,911 | ||||||
Contingently convertible debt interest expense and dividends attributable to unvested shares | (7 | ) | (7 | ) | |||||||
Net Earnings used for Diluted EPS Calc - Continuing Operations | |||||||||||
-Attributable to BMS Company | $ | 1,663 | 241 | $ | 1,904 | ||||||
Average Common Shares Outstanding - Diluted | 1,727 | 1,727 | |||||||||
Diluted EPS - Continuing Operations Attributable to BMS Company | $ | 0.96 | 0.14 | $ | 1.10 | ||||||
Net Earnings from Continuing Operations Attributable to BMS Company as a % of sales | 17.4 | % | 2.6 | % | 20.0 | % | |||||
Effective Tax Rate | 22.2 | % | 2.1 | % | 24.3 | % |
10
BRISTOL-MYERS SQUIBB COMPANY
SPECIFIED ITEMS
FOR THE THREE MONTHS ENDED JUNE 30, 2010 AND 2009
($ in millions)
Three months ended June 30, 2010
Cost of products sold | Marketing, selling and administrative | Research and development | Provision for restructuring | Other (income)/ expense | Total | ||||||||||||||
Restructuring Activity: | |||||||||||||||||||
Downsizing and streamlining of worldwide operations | $ | — | $ | — | $ | — | $ | 24 | $ | — | $ | 24 | |||||||
Impairment and loss on sale of manufacturing operations | — | — | — | — | 15 | 15 | |||||||||||||
Accelerated depreciation, asset impairment and other shutdown costs | 27 | — | — | — | — | 27 | |||||||||||||
Pension settlements/curtailments | — | — | — | — | 5 | 5 | |||||||||||||
Process standardization implementation costs | — | 6 | — | — | — | 6 | |||||||||||||
Total Restructuring | 27 | 6 | — | 24 | 20 | 77 | |||||||||||||
Other: | |||||||||||||||||||
Upfront licensing, milestone and other payments | — | — | 17 | — | — | 17 | |||||||||||||
Total | $ | 27 | $ | 6 | $ | 17 | $ | 24 | $ | 20 | 94 | ||||||||
Income taxes on items above | (18 | ) | |||||||||||||||||
Out-of-period tax adjustment | (59 | ) | |||||||||||||||||
Decrease to Net Earnings from Continuing Operations | 17 | ||||||||||||||||||
Three months ended June 30, 2009
Cost of products sold | Marketing, selling and administrative | Research and development | Provision for restructuring | Litigation expense | Other (income)/ expense | Total | |||||||||||||||||
Restructuring Activity: | |||||||||||||||||||||||
Downsizing and streamlining of worldwide operations | $ | — | $ | — | $ | — | $ | 17 | $ | — | $ | — | $ | 17 | |||||||||
Accelerated depreciation, asset impairment and other shutdown costs | 24 | — | — | 2 | — | — | 26 | ||||||||||||||||
Pension settlements/curtailments | — | — | — | — | — | 25 | 25 | ||||||||||||||||
Process standardization implementation costs | — | 25 | — | — | — | — | 25 | ||||||||||||||||
Gain on sale of product lines, businesses and assets | — | — | — | — | — | (11 | ) | (11 | ) | ||||||||||||||
Total Restructuring | 24 | 25 | — | 19 | — | 14 | 82 | ||||||||||||||||
Other: | |||||||||||||||||||||||
Litigation charges | — | — | — | — | 28 | — | 28 | ||||||||||||||||
Upfront licensing and milestone payments | — | — | 29 | — | — | — | 29 | ||||||||||||||||
Debt buyback and swap terminations | — | — | — | — | — | (11 | ) | (11 | ) | ||||||||||||||
Total | $ | 24 | $ | 25 | $ | 29 | $ | 19 | $ | 28 | $ | 3 | 128 | ||||||||||
Income taxes on items above | (42 | ) | |||||||||||||||||||||
Decrease to Net Earnings from Continuing Operations | $ | 86 | |||||||||||||||||||||
11
BRISTOL-MYERS SQUIBB COMPANY
SPECIFIED ITEMS
FOR THE SIX MONTHS ENDED JUNE 30, 2010 AND 2009
($ in millions)
Six months ended June 30, 2010 |
Cost of products sold | Marketing selling and administrative | Research and development | Provision for restructuring | Other (income)/ expense | Total | ||||||||||||||
Restructuring Activity: | |||||||||||||||||||
Downsizing and streamlining of worldwide operations | $ | — | $ | — | $ | — | $ | 35 | $ | — | $ | 35 | |||||||
Impairment and loss on sale of manufacturing operations | — | — | — | — | 215 | 215 | |||||||||||||
Accelerated depreciation, asset impairment and other shutdown costs | 58 | — | — | — | — | 58 | |||||||||||||
Pension settlements/curtailments | — | — | — | — | 5 | 5 | |||||||||||||
Process standardization implementation costs | — | 19 | — | — | — | 19 | |||||||||||||
Total Restructuring | 58 | 19 | — | 35 | 220 | 332 | |||||||||||||
Other: | |||||||||||||||||||
Upfront licensing, milestone and other payments | — | — | 72 | — | — | 72 | |||||||||||||
Total | $ | 58 | $ | 19 | $ | 72 | $ | 35 | $ | 220 | 404 | ||||||||
Income taxes on items above | (104 | ) | |||||||||||||||||
Out-of-period tax adjustment | (59 | ) | |||||||||||||||||
Decrease to Net Earnings from Continuing Operations | $ | 241 | |||||||||||||||||
Six months ended June 30, 2009 |
Cost of products sold | Marketing selling and administrative | Research and development | Provision for restructuring | Litigation expense | Other (income)/ expense | Total | |||||||||||||||||
Restructuring Activity: | |||||||||||||||||||||||
Downsizing and streamlining of worldwide operations | $ | — | $ | — | $ | — | $ | 32 | $ | — | $ | — | $ | 32 | |||||||||
Accelerated depreciation, asset impairment and other shutdown costs | 50 | — | — | 6 | — | — | 56 | ||||||||||||||||
Pension settlements/curtailments | — | — | — | — | — | 25 | 25 | ||||||||||||||||
Process standardization implementation costs | — | 45 | — | — | — | — | 45 | ||||||||||||||||
Gain on sale of product lines, businesses and assets | — | — | — | — | — | (55 | ) | (55 | ) | ||||||||||||||
Total Restructuring | 50 | 45 | — | 38 | — | (30 | ) | 103 | |||||||||||||||
Other: | |||||||||||||||||||||||
Litigation charges | — | — | — | — | 132 | — | 132 | ||||||||||||||||
Upfront licensing and milestone payments | — | — | 174 | — | — | — | 174 | ||||||||||||||||
Debt buyback and swap terminations | — | — | — | — | — | (11 | ) | (11 | ) | ||||||||||||||
Product liability | 8 | — | — | — | — | (5 | ) | 3 | |||||||||||||||
Total | $ | 58 | $ | 45 | $ | 174 | $ | 38 | $ | 132 | $ | (46 | ) | 401 | |||||||||
Income taxes on items above | (135 | ) | |||||||||||||||||||||
Decrease to Net Earnings from Continuing Operations | $ | 266 | |||||||||||||||||||||
12
BRISTOL-MYERS SQUIBB COMPANY
SELECTED BALANCE SHEET INFORMATION
($ in millions)
March 31, 2009 | June 30, 2009 | September 30, 2009 | December 31, 2009 | March 31, 2010 | June 30, 2010 | September 30, 2010 | December 31, 2010 | |||||||||||||||||
Cash and cash equivalents | $ | 7,832 | $ | 7,507 | $ | 6,367 | $ | 7,683 | $ | 5,135 | $ | 5,918 | ||||||||||||
Marketable securities - current | 1,088 | 613 | 302 | 831 | 1,641 | 1,536 | ||||||||||||||||||
Marketable securities - long term | 184 | 983 | 1,202 | 1,369 | 2,997 | 2,795 | ||||||||||||||||||
Short-term borrowings | 156 | 124 | 286 | 231 | 208 | 290 | ||||||||||||||||||
Long-term debt | 6,492 | 6,235 | 6,307 | 6,130 | 6,081 | 6,248 | ||||||||||||||||||
Net (debt) / cash | $ | 2,456 | $ | 2,744 | $ | 1,278 | $ | 3,522 | $ | 3,484 | $ | 3,711 | $ | — | $ | — | ||||||||
13
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 | $ | 1.84 to $1.94 | ||
Projected Specified Items: | ||||
Downsizing and streamlining of worldwide operations | 0.15 | |||
Accelerated depreciation and other shutdown costs | 0.08 | |||
Upfront and milestone payments and other | 0.03 | |||
Certain tax-related items | (0.03 | ) | ||
Total | 0.23 | |||
Projected Diluted Earnings Attributable to Shareholders per Common Share - Non-GAAP | $ | 2.10 to $2.20 | ||
Gross margin on a GAAP basis for the six months ended June 30, 2010 was 73.0%, which included specified items of $58 million and had a 0.6% adverse impact on gross margin in aggregate. On a non-GAAP basis, for the six months ended June 30, 2010 gross margin was 73.6%. 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 - June YTD tab.
Research and development expenses on a GAAP basis for the six months ended June 30, 2010 were $1,732 million, which included specified items of $72 million. On a non-GAAP basis, for the six months ended June 30, 2010 research and development expenses were $1,660 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 - June YTD tab.
Marketing, selling and administrative expenses, on a GAAP basis for the six months ended June 30, 2010 were $1,794 million, which included specified items of $19 million. On a non-GAAP basis, for the six months ended June 30, 2010 marketing, selling and administrative expenses were $1,775 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 - June YTD tab.
The effective tax rate on a GAAP basis for the six months ended June 30, 2010 was 22.2%, which included specified items of $163 million in the tax provision, and had a 2.1% impact on the effective tax rate in aggregate. On a non-GAAP basis, for the six months ended June 30, 2010 effective tax rate was 24.3%. 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 - June YTD tab.
The GAAP results for the full year 2010 will include specified items that may occur and impact results, including expected charges associated with downsizing and streamlining worldwide operations, accelerated depreciation, upfront and milestone payments and certain tax-related items. The GAAP results for the full year 2010 could also include other specified items that have not yet been identified and quantified, including any gains or losses from the purchase or sale of business or product lines, 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 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 Second Quarter of 2010, July 22, 2010, including “2010 Guidance” and “Use of Non-GAAP Financial Information” therein.
With respect to the 2013 minimum non-GAAP EPS guidance, there is no reasonably accessible or reliable comparable GAAP measure for this forward-looking information on earnings per share.
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