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Proc-Type: 2001,MIC-CLEAR
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SECURITIES AND EXCHANGE
COMMISSION WASHINGTON, D.C. 20549 FORM 10-K [X] ANNUAL REPORT PURSUANT TO SECTION
13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31,
2000 Commission File Number 1-1136 BRISTOL-MYERS SQUIBB COMPANY (Exact name of registrant as specified
in its charter) Delaware
22-079-0350
(State or other jurisdiction of incorporation or organization)
(IRS Employer Identification No.)
345 Park Avenue, New York, N.Y. 10154 (Address of principal executive offices) Telephone: (212) 546-4000 Securities registered pursuant to Section
12(b) of the Act:
Title of each class
Name of each exchange on which registered Common Stock, $.10 Par Value
New York Stock Exchange Pacific Exchange, Inc.
$2 Convertible Preferred Stock, $1 Par Value
New York Stock Exchange Pacific Exchange, Inc.
Securities registered pursuant to Section
12(g) of the Act: None Indicate by check mark if disclosure
of delinquent filers pursuant to Item 405 of Regulation S-K is not contained
herein, and will not be contained, to the best of the registrant's knowledge,
in definitive proxy or information statements incorporated by reference in Part
III of this Form 10-K or any amendment to this Form 10-K. [X] Indicate by check mark whether the registrant
(1) has filed all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or for such
shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days. Yes [X] No
[ ] The aggregate market value of voting
stock held by non-affiliates of the registrant as of February 28, 2001 was $123,348,473,200.
At February 28, 2001, there were 1,948,495,117 shares of common stock outstanding. Documents incorporated by reference Proxy Statement for Annual Meeting of
Stockholders on Mary 1, 2001 Part III PART I Item 1. BUSINESS DESCRIPTION OF BRISTOL-MYERS SQUIBB COMPANY General: Bristol-Myers Squibb Company ("Bristol-Myers
Squibb" or the "Company") was incorporated under the laws of the State of Delaware
in August 1933 under the name Bristol-Myers Company as successor to a New York
business started in 1887. In 1989, the Bristol-Myers Company changed its name
to Bristol-Myers Squibb Company, as a result of a merger. The Company, through
its divisions and subsidiaries, is a major producer and distributor in one significant
business segment - medicines. Operations of the Nutritional and ConvaTec businesses
are not material to the financial statements. In general, the business of the
Company is not seasonal. On September 28, 2000, the Company announced
the planned divestiture of its Clairol and Zimmer businesses in 2001. The Company
announced on February 22, 2001 its intention to separate the Zimmer business
in a tax-free spin-off to shareholders. Completion is expected by the end of
the third quarter of 2001. Accordingly, the operations of these businesses have
been reflected as discontinued operations in the financial statements. Sales of selected products and product
categories from continuing operations are as follows: 2000
1999
1998
PRAVACHOL*
$1,817
$1,704
$1,643
GLUCOPHAGE
1,732
1,317
862
TAXOL*
1,592
1,481
1,206
Oncology Therapeutics Network
1,080
894
657
PLAVIX
903
547
144
BUSPAR*
709
605
531
PARAPLATIN*
690
600
525
ZERIT*
618
605
551
MONOPRIL*
442
424
380
CEFZIL*
391
402
358
AVAPRO
381
255
123
SERZONE*
360
332
257
CAPOTEN*/CAPOZIDE*
356
484
636
EXCEDRIN*
233
240
241
VIDEX*
202
205
162
Infant formulas
1,212
1,233
1,203
Ostomy
428
449
464
Wound Care
232
238
239
_____________________________________________________________________________________________ 2 PRAVACHOL* pravastatin sodium, an HMG Co-A reductase inhibitor indicated
for primary hypercholestermia. Patents expire in the U.S. in October 2005
and in international markets from 2000 through 2010.
GLUCOPHAGE
metformin, an oral anti-diabetes agent for type 2 non-insulin-dependent
diabetes. Hatch-Waxman exclusivity expired in September 2000; however,
no generic competition existed at the end of the year.
TAXOL*
paclitaxel, used in the
treatment of refractory ovarian cancer, first-line treatment of ovarian
cancer in combination with cisplatin, second-line treatment of AIDS- related
Kaposi's Sarcoma, treatment of metastatic breast cancer after failure
of combination chemotherapy, adjuvant treatment of node positive breast
cancer and in the treatment of non-small cell lung carcinoma with cisplatin.
Reference is also made to Item 3 Legal Proceedings in Part 1 of this Form
10-K Annual Report and to Note 17 Litigation in Part 2, Item 8, of this
Form 10-K Annual Report.
Oncology Therapeutics Network
a specialty distributor of anti-cancer medicines and
related products.
PLAVIX
clopidogrel, a platelet inhibitor, co-developed and jointly
marketed with Sanofi-Synthelabo.
BUSPAR*
buspirone, a novel anti-anxiety agent for persistent
anxiety with or without accompanying depressive symptoms. The US anxiolytic
use patent expired on May 22, 2000. The Food and Drug Administration granted
the company an additional six months exclusivity based on its performance
of pediatric studies. Patents outside of the US expired in 1999. Reference
is made to the discussion on BUSPAR* in Item 7 in Part 2 of this Form
10-K Annual Report.
PARAPLATIN*
carboplatin, a chemotherapeutic agent used in the treatment
of ovarian cancer. Patent expired in France in June 2000 and expires in
the US in April 2004.
ZERIT*
stavudine, used in the treatment of persons with advanced
HIV disease. Patent expires in the US in June 2008 and internationally
from 2007 through 2011.
MONOPRIL*
fosinopril sodium, a second-generation ACE inhibitor
with once-a-day dosing indicated for the treatment of hypertension. Composition
of matter US patent expires in December 2002 and in international markets
from 2001 through 2008.
CEFZIL*
cefprozil, an oral cephalosporin used in the treatment
of respiratory infections and sinusitis. US patent expires in December
2005 and in international markets from 2003 through 2008.
AVAPRO
irbesartan, an angiotensin II receptor antagonist indicated
for the treatment of hypertension, CO-developed and jointly marketed with
Sanofi-Synthelabo.
SERZONE*
nefazodone, an antidepressant treatment. Patent expires
in the US in March 2003 and internationally from 2002 through 2010.
CAPOTEN*/ captopril, an angiotensin converting enzyme (ACE) inhibitor.
Patents have expired in the US and in all significant international markets.
EXCEDRIN*
an analgesic with acetaminophen and caffeine. EXCEDRIN*
Migraine is indicated for the treatment of the full migraine syndrome.
VIDEX*
didanosine, an antiretroviral drug used in the treatment
of adult and pediatric patients with advanced human immunodeficiency virus
(HIV) infection. Patent expires in the US in August 2006 and internationally
from 2006 through 2009.
* Indicates brand names of products which
are registered trademarks owned by the Company. 3 SOURCES AND AVAILABILITY OF RAW MATERIALS In general, Bristol-Myers Squibb purchases
its principal raw materials and supplies in the open market. Substantially all
such materials are obtainable from a number of sources so that the loss of any
one source of supply would not have a material adverse effect on the Company. PATENTS, TRADEMARKS AND LICENSES The Company owns or is licensed under
a number of patents in the United States and foreign countries covering products,
and has also developed many brand names and trademarks for products. The Company
considers the overall protection of its patent, trademark and license rights
to be of material value and acts to protect these rights from infringement.
In the years 2001 and 2002 exclusivity periods are scheduled to expire or have
expired for MONOPRIL* and certain TAXOL* claims. The Company believes that no
single patent or license is of material importance in relation to the business
as a whole. COMPETITION, DISTRIBUTION AND CUSTOMERS The markets in which Bristol-Myers Squibb
competes are generally broad-based and highly competitive. The principal means
of competition utilized to market the products of Bristol-Myers Squibb include
quality, service, price and product performance. Pharmaceutical products and
the products of ConvaTec are promoted on a national and international basis
in medical journals and directly to the medical profession. The Company is also
utilizing direct-to-consumer advertising for a number of its pharmaceutical
products. Most of the other products of Bristol-Myers Squibb are generally advertised
and promoted on a national and international basis through the use of television,
radio, print media, consumer offers, and window and in-store displays. Bristol-Myers
Squibb's products are principally sold to the wholesale and retail trade both
nationally and internationally. Certain products are also sold to other drug
manufacturers, hospitals and the medical profession. Two wholesalers accounted
for approximately 13% and 12% of net sales from continuing operations in 2000. 4 RESEARCH AND DEVELOPMENT Research and development is essential
to Bristol-Myers Squibb's business. Pharmaceutical research and development
is carried out by the Bristol-Myers Squibb Pharmaceutical Research Institute,
which has major facilities in Princeton, Hopewell and New Brunswick, New Jersey
and Wallingford, Connecticut. Pharmaceutical research and development is also
carried out at various other facilities in the United States and in Belgium,
Canada, France, Italy and the United Kingdom. Management continues to emphasize
leadership, innovation and productivity as strategies for success in the Research
Institute. Bristol-Myers Squibb spent $1,939 million
in 2000, $1,759 million in 1999 and $1,506 million in 1998 on Company sponsored
research and development activities. Pharmaceutical research and development
spending, as a percentage of pharmaceutical sales, was 13.0% in 2000 compared
with 12.6% in 1999 and 12.4% in 1998. REGULATION Most aspects of the Company's business
are subject to some degree of government regulation in the countries in which
its operations are conducted. The Company's policy is to comply fully with all
regulatory requirements applying to its products and operations. For some products,
and in some countries, government regulation is significant and, in general,
there is a trend to more stringent regulation. The Company devotes significant
time, effort and expense addressing the extensive governmental regulatory requirements
applicable to its business. Governmental regulatory actions can result in the
recall or seizure of products, suspension or revocation of the authority necessary
for the production or sale of a product, and other civil and criminal sanctions. In the United States, the drug, medical
device, diagnostic and food industries in which the Company operates have long
been subject to regulation by various federal, state and local agencies, primarily
as to product manufacture, safety, efficacy, advertising and labeling. In addition, governmental bodies in the
United States as well as other countries have expressed concern about costs
relating to health care and, in some cases, have focused attention on the pricing
of drugs and on appropriate drug utilization. Government regulation in these
areas already exists in some countries and may be expanded significantly in
the United States and other countries in the future. While the Company is unable to predict
the extent to which its business may be affected by future regulatory developments,
it believes that its substantial experience dealing with governmental regulatory
requirements and restrictions on its operations throughout the world and its
development of new and improved products should enable it to compete effectively
within this environment. _____________________________________________________________________________________________
5 EMPLOYEES Bristol-Myers Squibb employees from continuing
operations were approximately 44,000 people at December 31, 2000. DOMESTIC AND FOREIGN OPERATIONS Reference is made to Note 12 Financial
Instruments, and Note 14 Segment Information in the Notes to Consolidated Financial
Statements included in Part II, Item 8 of this Form 10-K Annual Report. International operations are subject
to certain risks which are inherent in conducting business abroad, including
possible nationalization or expropriation, price and exchange controls, limitations
on foreign participation in local enterprises and other restrictive governmental
actions. In addition, changes in the relative value of currencies take place
from time to time and their effects may be favorable or unfavorable on Bristol-Myers
Squibb's operations. There are currency restrictions relating to repatriation
of earnings in certain countries. Item 2. PROPERTIES. Bristol-Myers Squibb's world headquarters
is located at 345 Park Avenue, New York, New York, where it leases approximately
460,000 square feet of floor space, approximately 206,300 square feet of which
is sublet to others. Bristol-Myers Squibb manufactures products
at forty major worldwide locations with an aggregate floor space of approximately
12,800,000 square feet. All facilities are owned by Bristol-Myers Squibb. The
following table illustrates the geographic location of the Company's significant
manufacturing facilities. United States
15
Europe, Mid East and Africa
11
Other Western Hemisphere
9
Pacific
5
Total
40
Portions of these facilities and other
facilities owned or leased by Bristol-Myers Squibb in the United States and
elsewhere are used for research, administration, storage and distribution. Bristol-Myers
Squibb's facilities are well-maintained, adequately insured and in satisfactory
condition. _____________________________________________________________________________________________ 6 Item 3. LEGAL PROCEEDINGS.
Various lawsuits, claims
and proceedings of a nature considered normal to its businesses are pending
against the Company and certain of its subsidiaries. The most significant of
these are described below. Reference is made to
Note 17 Litigation in the Notes to the Consolidated Financial Statements included
in Part II, Item 8 of this Report. Breast Implant
Litigation The Company, together
with its subsidiary, Medical Engineering Corporation (MEC), and certain other
companies, has been named as a defendant in a number of claims and lawsuits
alleging damages for personal injuries of various types resulting from polyurethane-covered
breast implants and smooth-walled breast implants formerly manufactured by MEC
or a related Company. Of the more than 90,000 claims or potential claims against
the Company in direct lawsuits or through registration in the nationwide class
action settlement approved by the Federal District Court in Birmingham, Alabama
(the "Revised Settlement"), most have been dealt with through the Revised Settlement,
other settlements, or trial. As of December 31, 2000, the Company's contingent
liability in respect of breast implant claims was limited to residual unpaid
Revised Settlement obligations and to roughly 850 remaining opt-outs who have
pursued or may pursue their claims in court. As of December 31, 2000,
approximately 4,790 United States and 310 foreign breast implant recipients
were plaintiffs in lawsuits pending in federal and state courts in the United
States and certain courts in Canada and Australia. These figures include the
claims of plaintiffs that are in the process of being settled and/or dismissed.
In these lawsuits, about 2,140 US and 68 foreign plaintiffs opted out of the
Revised Settlement. The lawsuits of the 2,650 US plaintiffs who did not opt
out are expected to be dismissed since these plaintiffs are among the estimated
74,000 women with MEC implants who chose to participate in the nationwide settlement.
Of the 2,140 opt-out plaintiffs, an estimated 1,290 have claims based upon products
that were not manufactured or sold by MEC or that have been or are in the process
of being settled and/or dismissed. Accordingly, the number of remaining plaintiffs
who have pursued or may pursue their claims in court against the Company is
roughly 850, as stated in the preceding paragraph. Under the terms of the
Revised Settlement, additional opt-outs are expected to be minimal since the
deadline for US class members to opt out has passed. In addition, the Company's
remaining obligations under the Revised Settlement Program are limited because
most payments to "Current Claimants" have already been made, no additional "Current
Claims" may be filed without court approval, and because payments of claims
to so-called "Other Registrants" and "Late Registrants" are limited by the terms
of the Revised Settlement. Separate class action settlements have been approved
in the provincial courts of Ontario and Quebec, and an agreement has been reached
under which other foreign breast implant recipients may settle their claims.
The Company believes it will be able to address remaining opt-out claims as
well as expected remaining obligations under the Revised Settlement Program
within its reserves described below. Breast implants were
manufactured by several companies, including MEC, which the Company acquired
in 1982. Until 1991, MEC manufactured two types of breast implants, polyurethane-covered
silicone breast implants and smooth-walled silicone breast implants. In these
lawsuits, plaintiffs typically contend that silicone in breast implants causes
systemic disease and/or local complications. Some plaintiffs with polyurethane-covered
silicone implants contend that the polyurethane component causes injury, including
cancer. Most of the disease claims involve non-specific complaints such as chronic
fatigue, aches and pains and other symptoms that commonly affect the population
at large. Many women claim local complications such as rupture, hardening or
contracture, and disfigurement or scarring. The plaintiffs typically seek compensatory
damages for alleged medical conditions and emotional distress as well as punitive
damages. The defendants have based their defense in part on the lack of credible
scientific evidence that breast implants cause disease. Many large-scale epidemiological
studies have found no connection between breast implants and the alleged diseases.
Defendants also contend that warnings set forth in the product literature adequately
advised physicians and surgeons of the risks of local complications. _____________________________________________________________________________________________ 7 The Company is a participant
in the national class action Revised Settlement Program approved on December
22, 1995, by the federal court in Alabama (Lindsey, et al., v. Dow Corning,
et al., CV-94-P-11558-S), before which all federal breast implant cases were
consolidated for pretrial purposes. On January 16, 1996, the Company, Baxter
Healthcare Corporation and Baxter International (collectively, Baxter), and
Minnesota, Mining and Manufacturing Company (3M) (hereinafter, the Settling
Defendants) each paid $125 million into a court-established fund as an initial
reserve to pay claims under the Revised Settlement. The Company has made and
will make additional contributions to the court-established fund. The fifteen-year Revised
Settlement, which ends on December 15, 2010, provides benefits to those US breast
implant recipients who have had at least one breast implant manufactured by
one of the Settling Defendants (or their related companies). For Current Claimants
- those who submitted the proper documentation to the Claims Office in Houston
by the 1994 deadline - benefits are payable regardless of the number of claimants
seeking compensation, and regardless of the total dollar value of approved claims.
For Other and Late Registrants - those who registered with the Claims Office
after the Current Claimant deadline - benefits are subject to an aggregate $725
million limit for the three Settling Defendants over the fifteen-year life of
the program. The Company's individual aggregate limit for such benefits is $400
million, $27.6 million annually for the first ten years, and $24.8 million annually
for the last five years. Amounts unused in one year may be rolled over to pay
claims in ensuing years. In the event the dollar value of the claims subject
to these limits were to exceed the amounts available to pay claims, claimants
may be afforded additional opt-out rights but without the right to assert punitive
or other statutory multiple damage claims. The Company's obligations to make
payments under the Revised Settlement are not affected by the number of class
members electing to opt out of the settlement or the number of class members
making claims under it except to the extent of the above-mentioned dollar limits. In addition to individual
suits and the Lindsey class action, the Company is a defendant, together with
other defendants, in a class action certified on April 11, 1996, in the Canadian
province of British Columbia, on the single issue of whether silicone gel breast
implants are reasonably fit for their intended purpose (Harrington v. Dow Corning
Corporation et al., Supreme Court, British Columbia, C954330). On March 31,
2000, the federal government filed a civil suit in federal court in Birmingham,
Alabama, against several parties in the breast implant litigation, including
the Company. The government claims it is entitled to reimbursement for certain
costs allegedly incurred in connection with the medical treatment provided to
women with breast implants. The Company believes it will be able to address
the government lawsuit within its reserves as described below. The Company entered into
several other settlements of breast implant-related claims. In July of 1995,
the Company entered into a $20.5 million (US funds) class action settlement
with plaintiff representatives in the provinces of Ontario and Quebec. The class
includes persons who have or had MEC breast implants and who reside in Ontario _____________________________________________________________________________________________ 8 and Quebec or who received
their MEC implants there. The settlement, which had minimal opt-outs, was approved
by the provincial courts of Ontario and Quebec. In May of 1996, the Company,
together with other Settling Defendants in the Revised Settlement Program, entered
into a $50 million settlement of claims asserted by certain health insurers
based upon payments made or benefits provided by insurers and represented health
plans to participating registrants that allegedly involve or relate to silicone
gel breast implants. The Company has contributed $22.5 million to the settlement
which extinguished the potential claims of the majority of the US commercial
and non-governmental health care insurer market against both the defendants
and settlement class members. In November 1996, the benefits of the Revised
Settlement were extended, with certain modifications, to foreign breast implant
recipients. The Company paid roughly $5.3 million into a court-approved fund
in settlement of these claims. The Company's insurers
were notified of the breast implant claims and the Revised Settlement, and a
number reserved their rights or declined coverage. The Company reached settlement
with many of these insurers in connection with coverage litigation filed by
it in state court in Texas. In 1993, the Company offset its breast implant product
liability special charges by $1.0 billion of expected insurance proceeds (recorded
as Insurance Recoverable). Because of its belief that additional amounts of
insurance proceeds above that amount will be recovered, the Company recorded
an additional Insurance Recoverable in the fourth quarter of 1998 of approximately
$100 million. As a result of certain settlements, the Company has recovered
or reached agreements to recover the $1.1 billion offset amount. While there have been
a few large judgments, defendants have won more trials than they have lost,
and the Company's trial experience has been mostly favorable. The Company has
maintained throughout this litigation that breast implants do not cause disease,
and medical and scientific data support the Company's position. The Company's
view has found support in the trial courts. Courts in several states have ruled
to exclude the testimony of plaintiffs' experts concerning a causal link between
silicone gel breast implants and systemic illness on the ground that it fails
to satisfy standards for reliability under current US Supreme Court guidelines.
In 1998, a national science panel of four independent experts appointed by the
federal court issued its unanimous report, based on a comprehensive review of
the medical and scientific literature, that there is no evidence linking silicone
breast implants and systemic disease. Similarly, in 1999, the Institute of Medicine
of the National Academy of Sciences - while commenting that the frequency of
local injuries is greater than expected - concluded there is insufficient evidence
to link silicone breast implants with disease. The Company intends to dispose
of the claims of remaining opt-outs by continuing to implement its plan to settle
cases at values it deems acceptable, and to wage a vigorous defense, including
taking cases to trial, of those cases that do not settle at such values. In the fourth quarter
of 1993, the Company recorded a charge of $500 million before taxes ($310 million
after taxes) in respect of breast implant cases. The charge consisted of $1.5
billion for potential liabilities and expenses, offset by $1.0 billion of expected
insurance proceeds. In the fourth quarters of 1994 and 1995, the Company recorded
additional special charges of $750 million before taxes ($488 million after
taxes) and $950 million before taxes ($590 million after taxes), respectively,
related to breast implant product liability claims. In the fourth quarter of
1998, the Company recorded an additional special charge to earnings in the amount
of $800 million before taxes and increased its insurance receivable in the amount
of $100 million, resulting in a net charge to earnings of $433 million after
taxes in respect of breast implant product liability claims. TAXOL* Litigation In 1997 and 1998, the
company filed several lawsuits alleging that a number of generic drug companies
infringed its patents covering methods of administering paclitaxel when they
filed abbreviated new drug applications seeking regulatory approval to sell
paclitaxel. These actions were consolidated for discovery in the United States
District Court for the District of New Jersey. The company does not assert a
monetary claim against any of the defendants, but seeks to prevent the defendants
from marketing paclitaxel in a manner that violates the company's patents. _____________________________________________________________________________________________ 9 The defendants have asserted
that they do not infringe the company's patents and that these patents are invalid
and unenforceable. Some defendants also asserted counterclaims seeking damages
for alleged antitrust and unfair competition violations. The company believes
its patents are valid and the counterclaims asserted are without merit. On January 4, 2000, the
District Court granted the company's motion to dismiss certain of the antitrust
and unfair competition counterclaims. The company's motion for summary judgment
on the remaining antitrust and unfair competition counterclaims was denied on
March 17, 2000. On February 29, 2000, the District Court granted in part the
generic companies' summary judgment motions for invalidity by finding all claims
of the Company's patents invalid, except for claims limited to the treatment
of ovarian cancer. The District Court's opinion left for determination at trial
the validity of the claims of the Company's patents directed to the low dose,
three-hour administration of paclitaxel for ovarian cancer and denied the generic
companies' summary judgment motion arguing non-infringement of the Company's
patents. In order to pursue an
immediate appellate review of the District Court's invalidity findings, the
Company voluntarily relinquished all rights in the remaining ovarian tumor specific
claims of its patents. On April 7, 2000, the District Court granted the company's
request for an entry of judgment. The Company's appeal of the District Court's
judgment is pending before the Federal Circuit Court of Appeals. If the company
is successful on appeal and the trial that would follow a successful appeal,
the company believes its remaining patent rights would apply to all tumor types.
In September 2000, one
of the defendants received final approval from the United States Food and Drug
Administration for its Abbreviated New Drug Application (ANDA) for paclitaxel
and is marketing the product. FDA approvals of additional ANDAs for paclitaxel
can occur at any time beginning in April 2001. It is not possible at
this time to make a reasonable assessment of the outcome of the appeal and the
remaining claims in these actions nor to reasonably estimate the impact on TAXOL*
sales or the amount of damages were the company not to prevail. VANLEV* Litigation The Company, its Chairman
of the Board and Chief Executive Officer, Charles A. Heimbold, Jr. and its Chief
Scientific Officer and President - Pharmaceutical Research Institute, Peter
S. Ringrose, Ph.D., are defendants in a number of purported class actions filed
in the US District Court for the District of New Jersey in April, May and June
2000 alleging violations of federal securities laws and regulations. Plaintiffs
claim that the defendants disseminated materially false and misleading statements
and failed to disclose information concerning the safety and expected availability
of its product VANLEV* during the period November 8, 1999 through April 19,
2000. Plaintiffs seek compensatory damages and costs and expenses. It is not possible at
this time to make a reasonable assessment of the outcome of this matter or the
amount of damages were the Company not to prevail. Environmental
Matters The Company, together
with others, is a party to, or otherwise involved in, a number of proceedings
brought by the Environmental Protection Agency or comparable state agencies
under the Comprehensive Environmental Response, Compensation and Liability Act
(CERCLA or Superfund) or comparable state laws directed at the cleanup of hazardous
waste sites. _____________________________________________________________________________________________ 10 While it is not possible
to predict with certainty the outcome of these cases, it is the opinion of management
that they will not have a material adverse effect on the Company's operating
results, liquidity or consolidated financial position. Item 4. SUBMISSION
OF MATTERS TO A VOTE OF SECURITY HOLDERS. None. _____________________________________________________________________________________________ 11 PART IA EXECUTIVE OFFICERS OF THE REGISTRANT The following are the executive corporate
officers and the other executive officers of the Company: Persons who hold titles
as elected corporate officers of the Company were last elected or reelected
to the office held at the general election of officers by the Company's Board
of Directors on May 2, 2000 unless otherwise indicated. Officers of the Company
serve in such capacity at the pleasure of the Board of Directors of the Company. _____________________________________________________________________________________________ 12 CHARLES A. HEIMBOLD,
JR. - From 1992 to 1996, President of the Company. Mr. Heimbold has been a director
of the Company since 1989, the Chief Executive Officer of the Company since
1994 and Chairman of the Board of Directors of the Company since 1995. HARRISON M. BAINS, JR.
- Mr. Bains has been Treasurer and Vice President, Corporate Staff of the Company
since 1988. PETER R. DOLAN - From
1995 to 1996, President, Mead Johnson Nutritional Group, a division of the Company,
from 1996 to 1997, President, Nutritionals and Medical Devices Group, a division
of the Company and from 1997 to 1998, President, Pharmaceutical Group - Europe,
a division of the Company, and from 1998 to 2000, Senior Vice President, Strategy
and Organizational Effectiveness, Corporate Staff. From 2000 to the present,
Mr. Dolan has been President of the Company, a Director of the Company, a member
of the Office of the Chairman and Chairman of the Corporate Operating Committee.
In addition, Mr. Dolan was named Chief Executive Officer-Designate earlier this
year. He will be the Chief Executive Officer of the Company on May 1, 2001. DONALD J. HAYDEN, JR.
- From 1995 to 1997, Senior Vice President, Worldwide Franchise Management and
Business Development, a division of the Company, in 1997, President, Intercontinental
Pharmaceutical Group and Senior Vice President, Worldwide Business Development,
Worldwide Medicines Group, a division of the Company, from 1997 to 1998, President,
Intercontinental, Worldwide Medicines Group, a division of the Company, from
1998-2000, President, Worldwide Medicines Group, a division of the Company.
Mr. Hayden has been Executive Vice President of the Company and a member of
the Office of the Chairman and Corporate Operating Committee since 2000. GEORGE P. KOOLURIS -
Mr. Kooluris has been Senior Vice President, Corporate Development, Corporate
Staff of the Company since 1994. RICHARD J. LANE - From
1995 to 1997, Senior Vice President Marketing, US Pharmaceuticals, a division
of the Company, in 1997, President, US Primary Care, a division of the Company,
from 1997 to 1998, President, US Pharmaceuticals, a division of the Company,
and from 1998 to 2000, President, US Medicines and Global Pharmaceutical Group,
a division of the Company. Mr. Lane has been President, Worldwide Medicines
Group, a division of the Company, and a member of the Office of the Chairman
and Corporate Operating Committee since 2000. SANDRA LEUNG - From 1994
to 1996, Senior Staff Attorney, Corporate Staff of the Company, from 1996 to
1997, Assistant Counsel, Corporate Staff of the Company, from 1997 to 1999,
Associate Counsel, 1999, Counsel, Corporate Staff of the Company. Ms. Leung
has been Secretary, Corporate Staff of the Company, and Head of the Office of
Corporate Conduct since 1999. JOHN L. McGOLDRICK -
From 1995 to 1997, General Counsel and Senior Vice President, Corporate Staff
of the Company and from 1997 to 1998, General Counsel and Senior Vice President,
Law and Strategic Planning, Corporate Staff of the Company, and General Counsel
and Senior Vice President, Corporate Staff of the Company and President, Medical
Devices Group, a division of the Company, since 1998. Mr. McGoldrick has been
Executive Vice President and General Counsel of the Company, President, Medical
Devices Group, a division of the Company, and a member of the Office of the
Chairman and Corporate Operating Committee since 2000. _____________________________________________________________________________________________ 13 MICHAEL F. MEE - From
1994 to 2000, Chief Financial Officer and Senior Vice President, Corporate Staff
of the Company. Mr. Mee has been Executive Vice President and Chief Financial
Officer, Corporate Staff of the Company and a member of the Office of the Chairman
and Corporate Operating Committee since 2000. PETER S. RINGROSE, Ph.D.
- From 1994 to 1996, Senior Vice President, Worldwide Discovery and Medicinal
Research Development, Europe of Pfizer Inc., a health care company. From 1997-2000,
President, Bristol-Myers Squibb Pharmaceutical Research Institute, a division
of the Company. Dr. Ringrose has been Chief Scientific Officer of the Company
and a member of the Office of the Chairman and Corporate Operating Committee
since 2000. STEPHEN I. SADOVE - From
1994 to 1996, President, Worldwide Clairol, a division of the Company. Mr. Sadove
has been President, Worldwide Beauty Care, a division of the Company, since
1996 and Senior Vice President, Corporate Staff of the Company since 1998. Mr.
Sadove has been a member of the Office of the Chairman and Corporate Operating
Committee since 2000. FREDERICK S. SCHIFF -
From 1990 to 1997, Controller and Vice President, Corporate Staff of the Company,
from 1997 to 2000 Controller and Vice President, Financial Operations, Corporate
Staff of the Company. Mr. Schiff has been Controller and Senior Vice President,
Financial Operations, Corporate Staff of the Company since March 2000. Mr. Schiff
has been a member of the Corporate Operating Committee since 2000. JOHN L. SKULE - From
1993 to 1997, Vice President, Public Affairs, Corporate Staff of the Company.
Mr. Skule has been Senior Vice President, Corporate and Environmental Affairs,
Corporate Staff of the Company since 1998. Mr. Skule has been a member of the
Corporate Operating Committee since 2000. CHARLES G. THARP, Ph.D.
Dr. Tharp has been Senior Vice President, Human Resources, Corporate Staff of
the Company since 1993. Mr. Tharp has been a member of the Corporate Operating
Committee since 2000. In addition to the positions
and offices heretofore listed, all of the foregoing executive corporate officers
and other executive officers of the Company are directors and/or officers of
one or more affiliates of the Company, with the exception of Mr. Skule and Dr.
Tharp. _____________________________________________________________________________________________ 14 PART II Item 5. MARKET FOR THE REGISTRANT'S COMMON
STOCK AND RELATED STOCKHOLDER MATTERS. MARKET PRICES Bristol-Myers Squibb
common and preferred stocks are traded on the New York Stock Exchange and the
Pacific Exchange, Inc. (symbol: BMY). A quarterly summary of the high and low
market prices is presented below: 2000
1999
High
Low
High
Low
Common:
First Quarter
$68.50
$43.50
$66.19
$58.50
Second Quarter
66.50
49.50
70.44
57.44
Third Quarter
58.94
47.75
75.94
64.63
Fourth Quarter
73.94
55.50
77.00
60.13
Preferred: The Company's preferred
stock traded at a high of $962 and a low of $857 during the second quarter of
2000 and at a price of $1,000 in the first quarter of 1999. During the first,
third and fourth quarters of 2000, and the second, third and fourth quarters
of 1999, there were no trades of the Company's preferred stock. HOLDERS OF COMMON
STOCK The approximate number
of record holders of common stock at December 31, 2000 was 114,096. The number of record
holders is based upon the actual number of holders registered on the books of
Bristol-Myers Squibb at such date and does not include holders of shares in
"street names" or persons, partnerships, associations, corporations or other
entities identified in security position listings maintained by depository trust
companies. VOTING SECURITIES AND PRINCIPAL HOLDERS At the close of business on March 5,
2001, there were 1,949,674,068 shares of $0.10 par value Common Stock and 9,702
shares of $2.00 Convertible Preferred Stock outstanding and entitled to vote. The following table sets forth, as of
February 1, 2001, beneficial ownership of shares of Common Stock of the company
by each director, each of the named executive officers and all directors and
officers as a group. None of these persons beneficially owns greater than 1%
of the outstanding Common Shares nor any Preferred Shares. In addition, the
table sets forth, as of the indicated dates, the beneficial ownership of shares
of Common Stock of the company by each person known to be a beneficial holder
of more than 5% of the outstanding class of Common Stock. _____________________________________________________________________________________________ 15 Unless otherwise noted, such shares
are owned directly or indirectly with sole voting and investment power. Name DIVIDENDS Dividend payments per
share in 2000 and 1999 were: Common
Preferred
2000
1999
2000
1999
First Quarter
$ .245
$ .215
$ .50
$ .50
Second Quarter
.245
.215
.50
.50
Third Quarter
.245
.215
.50
.50
Fourth Quarter
.245
.215
.50
.50
$ .98
$ .86
$2.00
$2.00
In December 2000, the
Board of Directors of the Company declared a quarterly dividend of $.275 per
share on the common stock of the Company, payable on February 1, 2001 to shareholders
of record as of January 5, 2001. The 2001 indicated annual payment of $1.10
per share represents the twenty-ninth consecutive year that the Company has
raised the dividend on its common stock. _____________________________________________________________________________________________ 17 Item 6. SELECTED
FINANCIAL DATA. FIVE-YEAR FINANCIAL
SUMMARY OPERATING
RESULTS (in millions,
except per share amounts) 2000
1999
1998
1997
1996
Net Sales
$18,216
$16,878
$15,061
$13,698
$12,268
Expenses:
Cost of products sold
4,759
4,542
3,896
3,548
3,134
Marketing, selling and administrative
3,860
3,789
3,685
3,425
3,220
Advertising and product promotion
1,672
1,549
1,518
1,582
1,355
Research and development
1,939
1,759
1,506
1,322
1,203
Other (*)
508
81
818
83
(67)
12,738
11,720
11,423
9,960
8,845
Earnings from Continuing Operations Before
Income Taxes (*)
Provision for income taxes
1,382
1,369
888
994
939
Earnings from Continuing Operations (*)
$4,096
$3,789
$2,750
$2,744
$2,484
Earnings per common share
Basic
$2.08
$1.91
$1.38
$1.38
$1.24
Diluted
$2.05
$1.87
$1.36
$1.34
$1.22
Dividends per common share
.98
.86
.78
.76
.75
(*) Includes
a gain on sale of businesses of $160 million before taxes, $116 million
after taxes, or $.06 per common share, basic and diluted, in 2000; and $201
million before taxes, $125 million after taxes, or $.06 per common share,
basic and diluted, in 1998. Includes a special charge for prescription drug
pricing litigation of $100 million before taxes, $62 million after taxes,
or $.03 per common share, basic and diluted, in 1998. Includes a special
charge for pending and future product liability claims of $700 million before
taxes, $433 million after taxes, or $.22 per common share, basic, and $.21
per common share, diluted, in 1998. Includes a provision for restructuring
of $508 million before taxes, $329 million after taxes, or $.17 per common
share, basic and diluted, in 2000; $157 million before taxes, $98 million
after taxes, or $.05 per common share, basic and diluted, in 1998; and $120
million before taxes, $74 million after taxes, or $.04 per common share,
basic and diluted, in 1997. ______________________________________________________________________________________ 18 SELECTED FINANCIAL DATA. (Con't.) FIVE-YEAR FINANCIAL
SUMMARY FINANCIAL
POSITION AT DECEMBER 31** (in millions,
except per share amounts) 2000
1999
1998
1997
1996
Total assets
$17,578
$17,114
$16,272
$14,977
$14,685
Long-term debt
1,336
1,342
1,364
1,279
966
Average common shares outstanding - Basic
1,965
1,984
1,987
1,992
2,007
Average common shares outstanding - Diluted
1,997
2,027
2,031
2,042
2,035
Reference is
made to Note 2 Discontinued Operations, Note 3 Acquisitions and Divestitures,
Note 4 Restructuring and Note 17 Litigation, appearing in the Notes to Consolidated
Financial Statements included in Part II, Item 8 of this Form 10-K Annual Report. ** Financial position
data relates to the Company's assets and liabilities, including discontinued
operations. _____________________________________________________________________________________________ 19 Item 7. MANAGEMENT'S DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. Summary In September 2000, the Company
announced the planned divestitures of the Zimmer and Clairol businesses. Accordingly,
their results have been reported as discontinued operations and excluded from
consolidated sales and expenses for all years. In February 2001, the Company
announced its intention to separate
the Zimmer business in a tax-free spin-off to shareholders. This transaction
is expected to be completed by the end of the third quarter of 2001. In 2000, Bristol-Myers Squibb
reported $18.2 billion in annual global sales, an increase of 8% (11% excluding
foreign exchange) over 1999. Domestic sales, representing 67% of worldwide sales,
increased 14% to $12.1 billion, while international sales decreased 2% (a 5%
increase excluding foreign exchange) to $6.1 billion. Sales growth resulted
from an 8% increase due to volume, a 3% increase from changes in selling prices
and a 3% decrease due to exchange rate fluctuations. Total Company sales including
discontinued operations increased 5% (8% excluding foreign exchange) to $21.3
billion. The Company's most important
product lines made significant contributions to the Company's sales growth,
many of which experienced double-digit growth on a worldwide basis. Three products,
PRAVACHOL*, TAXOL* (paclitaxel) and GLUCOPHAGE, each exceeded $1.5 billion in
annual sales, while five additional products exceeded $500 million in annual
sales. Bristol-Myers Squibb had 54 product lines with more than $50 million
in annual sales, including 31 with more than $100 million in annual sales. Total Company earnings (continuing
and discontinued operations) before income taxes increased 12% to $6.5 billion
from $5.8 billion in 1999. Net earnings increased 13% to $4.7 billion; basic
and diluted earnings per share increased 14% to $2.40 and 15% to $2.36, respectively.
Earnings from continuing operations before income taxes, excluding restructuring
charges and gain on sales of businesses, increased 13% to $5.8 billion in 2000.
Net earnings, on this basis, increased 14% to $4.3 billion; basic and diluted
earnings per share increased 15% to $2.19 and 16% to $2.16, respectively. Over
the past five years, net earnings and diluted earnings per share from continuing
operations, excluding gains from sales of businesses and restructuring and special
charges, have increased at a compound annual growth rate of 14%. This growth
rate enabled the Company to achieve its goal of doubling 1993 earnings and earnings
per share by the end of 2000. In 2000, consistent with
the Company's mission to extend and enhance human life and to develop the highest
quality products, the Company invested more than $1.9 billion in research and
development, a 10% increase over the prior year. Research and development expenditure
dedicated to pharmaceutical products increased 14% over 1999 with a compound
annualized rate of 14% over the past five years. This significant investment
has led to the discovery of innovative new products and the development of new
indications for existing products leading, in 2000, to eight regulatory approvals
and the filing of three dossiers in the US Notable approvals included GLUCOVANCE,
a new oral combination drug, and GLUCOPHAGE XR Extended Release Tablets, a once-daily
version of GLUCOPHAGE, both for diabetes; VANIQA*, a topical treatment for unwanted
facial hair in women; and VIDEX* EC, a once-a-day, easier-to-digest, enteric-coated
form of VIDEX* for HIV/AIDS. Also in 2000, the Company
announced a number of research alliances, collaborations and commercialization
agreements with other companies, including a global agreement (excluding Japan)
with Novartis AG to codevelop and copromote tegaserod, Novartis's new investigational
drug treatment for irritable bowel syndrome; and a drug discovery alliance in
the field of genomics with 3-Dimensional Pharmaceuticals, Inc., under which
the Company will receive worldwide rights to compounds discovered or developed
through the collaboration. This agreement is one of more than a dozen major
genomics agreements the Company has entered into over the past three years. _____________________________________________________________________________________________ 20 Bristol-Myers Squibb's financial
position remains strong. At December 31, 2000, the Company held almost $3.4
billion in cash, time deposits and marketable securities. Cash provided by operating
activities reached $4.7 billion, the highest in the past 10 years. Returns to
shareholders included dividend distributions of $1.9 billion and stock repurchases
of $2.3 billion. Dividends per common share were $.98 in 2000, increasing from
$.86 per share paid in 1999. In December 2000, the Company announced a dividend
increase, the 29th consecutive year that dividends have increased. The 2001
indicated annual payment is $1.10 per common share, a 12% increase over 2000.
As further evidence of its strong financial position, Bristol-Myers Squibb is
one of only seven US industrial companies to receive a triple-A credit rating
from both Moody's and Standard & Poor's. Net Sales Sales increased 8% in 2000
to $18.2 billion, compared with increases of 12% and 10% in 1999 and 1998, respectively.
The consolidated sales growth in 2000 resulted from an 8% increase due to volume,
a 3% increase due to changes in selling prices and a 3% decrease due to foreign
exchange rate fluctuations. In 1999, the 12% increase in sales reflected an
11% increase due to volume, a 2% increase due to changes in selling prices and
a 1% decrease due to foreign exchange rate fluctuations. In 1998, the 10% increase
in sales reflected an 11% increase due to volume, a 2% increase due to changes
in selling prices and a 3% decrease due to foreign exchange rate fluctuations.
Domestic sales increased 14% in 2000 and 19% in 1999, while international sales
decreased 2% in 2000 (a 5% increase excluding foreign exchange) and increased
2% in 1999 (5% excluding foreign exchange). In general, the business of the
Company is not seasonal. In 2000, worldwide pharmaceutical
sales increased 11% with US pharmaceutical sales up 18% over the prior year.
Key pharmaceutical product sales include: Sales of PRAVACHOL*, a cholesterol-lowering
agent and the Company's largest selling product, increased 7% to $1,817 million
primarily as a result of an increase in retail prescriptions. Domestic sales
increased 9% to $1,127 million, while international sales increased 3% (14%
excluding foreign exchange) to $690 million. GLUCOPHAGE sales increased
32% to $1,732 million. GLUCOPHAGE, the leading branded oral medication for treatment
of non-insulin dependent (type 2) diabetes, had a market share of 33.4% in 2000,
up from 31.3% in the prior year. The marketing exclusivity for GLUCOPHAGE expired
in September 2000; however, no generic competition existed at the end of the
year. During the year, the Company received FDA approval for GLUCOVANCE, an important
advance in diabetes treatment, and for GLUCOPHAGE XR Extended Release tablets,
a once-daily version of GLUCOPHAGE. Sales of GLUCOVANCE and GLUCOPHAGE XR since
their launches were $110 million and $50 million, respectively. Sales of TAXOL*, the Company's
leading anticancer agent, increased 7% to $1,592 million as the product continued
to benefit from increased use in ovarian, breast and non-small cell lung cancer
following standard chemotherapy. Generic paclitaxel became available in the
US during the third quarter of 2000. Sales of PLAVIX, an anti-platelet
medication, increased 65% to $903 million. Results of the landmark CURE trial
(Clopidogrel in Unstable Angina to Prevent Recurrent Ischemic Events), jointly
sponsored by the company and Sanofi-Synthelabo, were announced in March 2001.
In this international trial of more than 12,500 patients with acute coronary
syndromes (unstable angina or non-Q wave myocardial infarction), PLAVIX was
significantly superior to standard therapies, including aspirin, in reducing
a cluster of clinical events: heart attack, stroke and cardiovascular death.
Sales of AVAPRO, an angiotensin II receptor blocker for the treatment of hypertension,
increased 49% to $381 million. AVAPRO and PLAVIX are cardiovascular products
that were launched from the Bristol-Myers Squibb and Sanofi-Synthelabo joint
venture. _____________________________________________________________________________________________ 21 Sales of BUSPAR*, the Company's novel
antianxiety agent, increased 17% to $709 million. The US anxiolytic use patent
expired in June 2000. The Food and Drug Administration (FDA) granted the company
an additional six months exclusivity based on its performance of pediatric studies.
In November 2000, the Company received a patent covering the anxiolytic use
of a BUSPAR* metabolite, a compound produced in the body by the oral administration
of BUSPAR* and buspirone itself. The patent was subsequently de-listed during
the course of litigation brought by generic manufacturers. On March 28, 2001,
three generic manufacturers received final approval from the FDA for their respective
Abbreviated New Drug Applications (ANDAs) for buspirone. Each of these three
ANDAs covers a separate dosage strength of buspirone. FDA approvals of additional
ANDAs for buspirone (of any dosage strength) can occur at any time beginning
in September 2001. The litigation is on-going. Sales of SERZONE*, a novel
antidepressant, increased 8% to $360 million. Sales of PARAPLATIN*, which
is used in combination therapy for the treatment of ovarian cancer, increased
15% to $690 million. Sales of MEGACE* O/S, indicated
for the treatment of anorexia and cachexia in patients with AIDS, increased
58% to $180 million. Sales of MAXIPIME*, a fourth-generation injectable cephalosporin
antibiotic, increased 10% to $146 million. Sales of TEQUIN*, a quinolone
antibiotic launched in December 1999, were $131 million. In November 2000, TEQUIN*
became the first quinolone antibiotic to be prescribed for more than one million
patients in the US after just 10 months on the market. Sales of DOVONEX*, an adult
dermatological treatment, increased 20% from the prior year to $121 million.
Sales of IFEX*, used in combination chemotherapy treatment, increased 23% to
$108 million. Sales of captopril, an ACE
inhibitor sold primarily under the trademark CAPOTEN*, declined 26% to $356
million due to generic competition. Sales from the Oncology
Therapeutics Network, a specialty distributor of anticancer medicines and related
products, were $1,080 million for the year, an increase of 21% over 1999. Nonpharmaceutical sales
included sales of BUFFERIN*, which increased 10% (5% excluding foreign exchange)
to $161 million due to increased sales in Japan, while sales of EFFERALGAN*,
an effervescent analgesic sold primarily in France, increased 4% (20% excluding
foreign exchange) to $172 million. Total infant formula sales
decreased 2% to $1,212 million. Sales of ENFAMIL*, the Company's largest selling
infant formula, remained at prior year levels of $732 million worldwide. Sales
of ostomy products decreased 5% (a 1% increase excluding foreign exchange) to
$428 million while sales of wound care products decreased 3% (a 3% increase
excluding foreign exchange) to $232 million. _____________________________________________________________________________________________ 22 Earnings In 2000, earnings from continuing
operations before income taxes, excluding the nonrecurring items described below,
increased 13% to $5,826 million from $5,158 million in 1999. Net earnings, on
this basis, increased 14% to $4,309 million compared with $3,789 million in
1999. Basic earnings per share increased 15% to $2.19 from $1.91 in the prior
year and diluted earnings per share increased 16% to $2.16 from $1.87. Net earnings
margins increased to 23.7% in 2000 from 22.4% in 1999. In 1999, net earnings
were $3,789 million, an 18% increase over 1998, excluding the nonrecurring items
described below. On this basis, basic earnings per share and diluted earnings
per share both increased 18% over 1998 and net earnings margins increased to
22.4% in 1999 from 21.4% in 1998. The Company recorded certain
nonrecurring items ("nonrecurring items") in 2000 to earnings of continuing
operations, including the gain on sales of businesses (three pharmaceutical
products - Estrace Cream, Ovcon 35 and Ovcon 50 as well as its Sea Breeze brand
in Japan) of $160 million before taxes, $116 million after taxes or $.06 per
diluted share; as well as restructuring charges of $508 million before taxes,
$329 million after taxes or $.17 per diluted share, in connection with workforce
reductions and asset write-downs related to the consolidation and closure of
plants and facilities and other expenses. In 1998, the Company recorded certain
nonrecurring items to earnings of continuing operations, including the gain
on sales of businesses (Ban, A/S GEA and Hexachimie) of $201 million before
taxes, $125 million after taxes or $.06 per diluted share; as well as restructuring
charges of $157 million before taxes, $98 million after taxes or $.05 per diluted
share in connection with asset write-downs and employee-related costs related
to the consolidation and closure of plants and facilities. Also, in 1998, the
Company recorded a special charge of $800 million before taxes, $495 million
after taxes, or $.24 per diluted share, to augment the reserve for breast implant
liability and for prescription drug pricing litigation, offset by expected insurance
recoveries. The effective income tax
rate on earnings from continuing operations before income taxes was 25.2% in
2000, compared with 26.5% in 1999, and 24.4% in 1998. The effective income tax
rate on earnings from continuing operations before income taxes, excluding the
nonrecurring items, was 26.0% in 2000, compared with 26.5% in 1999, and 26.8%
in 1998. The effective income tax rate has decreased since 1998 due to increased
income in lower tax jurisdictions. Total Company earnings (continuing
and discontinued operations) before taxes increased 12% to $6,486 million from
$5,767 million in 1999. Net earnings increased 13% to $4,711 million compared
with $4,167 million in 1999. Basic earnings per share increased 14% to $2.40
from $2.10 in the prior year and diluted earnings per share increased 15% to
$2.36 from $2.06. In 1999, net earnings were $4,167 million, an increase of
15% from $3,636 million in 1998, excluding the special charge. On this basis,
basic earnings per share were $2.10 and diluted earnings per share were $2.06,
both increasing 15% over 1998. Expenses Total costs and expenses,
excluding the nonrecurring items, as a percentage of sales, improved over the
past three years to 68.0% in 2000 compared with 69.4% in 1999, and 70.8% in
1998. Cost of products sold, as
a percentage of sales, improved to 26.1% in 2000 from 26.9% in 1999, principally
due to manufacturing efficiencies. In 1999, cost of products sold as a percentage
of sales increased to 26.9%, compared with 25.9% in 1998, principally due to
sales growth of lower margin products from the Oncology Therapeutics Network.
_____________________________________________________________________________________________ 23 Advertising and promotion
expenses increased 8% over the prior year to $1,672 million in 2000, primarily
as a result of a direct-to-consumer campaign for PRAVACHOL* and launch spending
for GLUCOVANCE and TEQUIN*. In 1999, advertising and promotion expenses increased
2% from 1998 to $1,549 million. As a percentage of sales, advertising and promotion
expenses remained at prior year levels of 9.2% and decreased from 10.1% in 1998,
reflecting an improvement in the effectiveness of the advertising and promotion
spending. Marketing, selling and administrative
expenses, as a percentage of sales, decreased to 21.2% in 2000 from 22.4% in
1999 and 24.5% in 1998. This decreasing trend is a result of slower rates of
increase in marketing, sales force and general administrative expenses compared
with revenue increases in the same period. The Company's investment
in research and development totaled $1,939 million in 2000, an increase of 10%
over 1999, and to 10.6% in 2000, as a percentage of sales, compared with 10.4%
in 1999 and 10.0% in 1998. This spending level reflects the Company's commitment
to research over a broad range of therapeutic areas and to clinical development
of new products. Over the past five years, research and development expenses
have increased at a compound annual growth rate of 11%. In 2000, research and
development spending dedicated to pharmaceutical products increased 14%, and
was 13.0% of pharmaceutical sales compared with 12.6% and 12.4% in 1999 and
1998, respectively. As described in the notes
to the financial statements, in the first quarter of 2000, the Company completed
the sale of three pharmaceutical products - Estrace Cream, Ovcon 35 and Ovcon
50 as well as its Sea Breeze brand in Japan. In 1999, the Company acquired CAL-C-TOSE*,
a leading nutritional milk modifier product in Mexico. Also, in 1999, the Company
completed the sale of Laboratori Guieu, SpA, an Italian-based gynecological,
pediatric and dermatological products business. In 1998, the Company acquired
Dong-A Biotech Co., Ltd., a marketer and distributor of pharmaceutical products
in South Korea. Also, in 1998, the Company divested its Ban brand of anti-perspirants
and deodorants; A/S GEA, a Denmark-based generic drug business; and Hexachimie,
a specialty chemical manufacturer based in France. Discontinued Operations Clairol sales decreased
6% to $1,894 million. Domestic sales decreased 4% while international sales
decreased 9% (8% excluding foreign exchange). In 1999, Clairol sales increased
4% to $2,020 million from $1,940 million in 1998. Zimmer sales increased 9%
to $1,053 million, led by an increase in sales of knee joint replacements of
10% to $416 million, of hip replacements of 14% to $329 million and of fracture
management products of 15% to $145 million. In 1999, Zimmer sales increased
5% to $963 million from $919 million in 1998. As described in the notes
to the financial statements, in the third quarter of 2000, the Company completed
the sale of Matrix Essentials, Inc. (Matrix), an affiliate of Clairol. Matrix
sales for the first six months of 2000 were $168 million and were $361 million
for the full year in 1999. As described in Note 2 to
the financial statements, in 2000 and 1998 the Company recorded restructuring
charges to discontinued operations of $34 million and $44 million before taxes,
respectively, primarily in connection with workforce reductions. In 2000, the
Company recorded a pretax gain of $402 million ($240 million after taxes) on
the sale of Matrix. The gain is included in the gain on disposal of discontinued
operations. As a result of the restructuring
charges, net earnings from discontinued operations were $375 million in 2000
and $391 million in 1998. Net earnings from discontinued operations, excluding
the restructuring charges, increased 5% to $397 million in 2000 and decreased
10% to $378 million in 1999. _____________________________________________________________________________________________ 24 Geographic Areas Bristol-Myers Squibb products
are available in virtually every country in the world; the Company's largest
markets are the US, France, Japan, Germany and Canada. Sales in the United States
increased 14% in 2000. Products with strong growth in the region included GLUCOPHAGE,
PLAVIX, BUSPAR*, PARAPLATIN* and AVAPRO. In 1999, sales in the United States
increased 19%, primarily due to growth of GLUCOPHAGE, TAXOL*, ENFAMIL*, BUSPAR*,
PLAVIX, PARAPLATIN* and AVAPRO. Sales in Europe, Mid-East
and Africa decreased 9% in 2000. Sales increased 3%, excluding foreign exchange,
as a result of growth in France due to increased sales of PRAVACHOL* and EFFERALGAN*,
partially offset by decreased sales of CAPOTEN* due to generic competition;
in Italy due to increased sales of TAXOL* and AVAPRO; and in Spain due to increased
sales of PRAVACHOL*, AVAPRO and PLAVIX. Excluding foreign exchange, sales in
Germany were 2% below prior year levels due to increased emphasis on generics
and governmental spending controls. In 1999, sales in Europe, Mideast and Africa
increased 2% (4% excluding foreign exchange), due to sales growth of products
including PRAVACHOL*, TAXOL*, PLAVIX and AVAPRO. These increases were partially
offset by decreases in sales of ostomy supplies and of CAPOTEN* due to generic
competition. Sales in Other Western Hemisphere
countries increased 3% (6% excluding foreign exchange) in 2000 primarily as
a result of growth in Canada due to increased sales of PLAVIX, AVAPRO and ENFAMIL*,
and in Mexico due to growth of ENFAMIL* and CAL-C-TOSE*. In 1999, sales in Other
Western Hemisphere countries decreased 9% (a 3% increase excluding foreign exchange)
primarily resulting from decreases in sales of CAPOTEN* and PRAVACHOL*, partially
offset by growth in ENFAMIL*, AVAPRO and PLAVIX. Sales in the Pacific region
increased 12% in 2000 (11% excluding foreign exchange). Products with strong
growth included BUFFERIN*, TAXOL* and PARAPLATIN* in Japan and nutritional products
in the Philippines and Thailand. In 1999, Pacific region sales increased 18%
(10% excluding foreign exchange) as a result of increases in BUFFERIN*, TAXOL*
and PARAPLATIN*. The favorable effect from foreign exchange was experienced
primarily in Japan. Financial Instruments Cash and cash equivalents,
time deposits and marketable securities totaled almost $3.4 billion at December
31, 2000 compared with $3.0 billion and $2.5 billion at December 31, 1999 and
1998, respectively. Working capital continued to improve with $4.2 billion at
December 31, 2000, compared with $3.7 billion and $3.0 billion at December 31,
1999 and 1998, respectively. Cash and cash equivalents, time deposits and marketable
securities, in addition to the conversion of other working capital items are
expected to fund near-term operations of the Company. The Company is exposed to
market risk due to changes in currency exchange rates. To reduce this risk,
the Company enters into certain derivative financial instruments when available
on a cost-effective basis to hedge its underlying economic exposure. These instruments
also are managed on a consolidated basis to efficiently net exposures and thus
take advantage of any natural offsets. Derivative financial instruments are
not used for trading purposes. Gains and losses on hedging transactions are
offset by gains and losses on the underlying exposures being hedged. _____________________________________________________________________________________________ 25 Foreign exchange option
contracts and, to a lesser extent, forward contracts are used to hedge anticipated
transactions. The Company's primary foreign currency exposures in relation to
the US dollar are the euro, Mexican peso, Canadian dollar, Brazilian real and
Japanese yen. The table below summarizes
the Company's outstanding foreign exchange option contracts as of December 31,
2000. The fair value of option contracts, which changes over time, is estimated
by using the Black-Scholes model and is based on year-end currency rates. The
fair value of option contracts should be viewed in relation to the fair value
of the underlying hedged transactions and the overall reduction in exposure
to adverse fluctuations in foreign currency exchange rates. Weighted Average Strike Price
Notional Amount
Carrying Value
Fair Value
Maturity
Euro
0.95
$842
$16
$31
2001
Mexican Peso
9.42
143
7
11
2001
Brazilian Real
1.78
119
5
17
2001
Australian Dollar
0.58
47
1
3
2001
Philippine Peso
44.56
37
2
5
2001
Canadian Dollar
1.49
23
-
-
2001
Chinese renminbi
8.28
21
1
-
2001
British Pound
1.56
20
-
1
2001
Other Currencies
Various
67
1
5
2001
Right to buy:
Japanese Yen
108.78
76
-
1
2001
$1,395
$33
At December 31, 1999, the
Company held right-to-sell option contracts with an aggregate notional amount,
carrying value and fair value of $1,621 million, $28 million and $69 million,
respectively. These contracts related primarily to option contracts with the
right to sell euros, Mexican pesos and Canadian dollars. Other contracts at
December 31, 1999 included right-to-buy option contracts, primarily to buy Japanese
yen for US dollars. These contracts had an aggregate notional amount and fair
value of $141 million and $20 million, respectively, and no carrying value. The Company maintains cash
and cash equivalents, time deposits and marketable securities with various financial
institutions. These financial institutions are located primarily in the US and
Europe. Company policy is designed to limit exposure to any one financial institution. Recently Issued Accounting
Standards In June 1998, the Financial
Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards
(SFAS) No. 133, Accounting for Derivative Instruments and Hedging Activities.
This statement requires that companies recognize all derivatives as either assets
or liabilities on the balance sheet and measure these instruments at fair value.
In June 1999, the FASB issued SFAS No. 137, Accounting for Derivative Instruments
and Hedging Activities - Deferral of the effective date of FASB Statement No.
133. This statement deferred the effective date of SFAS No. 133 to fiscal
years beginning after June 15, 2000. In June 2000, the FASB issued SFAS No.
138, Accounting for Certain Derivative Instruments and Certain Hedging Activities,
which made minor amendments to SFAS No. 133. The Company adopted SFAS No. 133,
as amended, on January 1, 2001. The adoption of this accounting requirement
will not have a material effect on either the Company's consolidated financial
statements or hedging programs. _____________________________________________________________________________________________ 26 Euro Conversion On January 1, 1999, certain
members of the European Union established fixed conversion rates between their
existing currencies and the European Union's common currency, known as the euro.
It is planned that by July 1, 2002 the participating countries will withdraw
all currencies and use the euro exclusively. The Company has committed
resources to conduct assessments and to take corrective actions to ensure it
is prepared for the introduction of the euro. The Company is actively addressing
the many areas involved with the introduction of the euro, including information
management, finance, legal and tax. This review includes the conversion of information
technology, business and financial systems; evaluation of currency risk; and
the effect on the Company's financial instruments, as well as the impact on
the pricing and distribution of Company products. The Company believes the
effect of introduction of the euro, as well as any related cost of conversion,
will not have a material impact on the results of operations, financial condition
and cash flows. Financial Position Cash and cash equivalents,
time deposits and marketable securities at December 31, 2000 were denominated
primarily in US dollar instruments with near-term maturities. The average interest
yield on cash and cash equivalents was 5.9% at December 31, 2000, while interest
yields on time deposits and marketable securities averaged 5.7% at December
31, 2000. Short-term borrowings and
long-term debt at December 31, 2000 are denominated primarily in US dollars
but also include Japanese yen long-term debt of $272 million. During the year
the Company reduced short-term borrowings by $247 million primarily as a result
of the paydown of the international commercial paper program. Internally generated cash
provided by operations was $4.7 billion in 2000, $4.2 billion in 1999 and $3.8
billion in 1998. Cash provided by operations continued to be the Company's primary
source of funds to finance operating needs and expenditures for new plants and
equipment. As part of the Company's ongoing commitment to improve plant efficiency
and maintain superior research facilities, the Company has invested $2.1 billion
in capital expansion over the past three years. Cash flow from operations also
included product liability payments, net of insurance recoverable receipts of
$73 million in 2000, $667 million in 1999 and $519 million in 1998. Cash provided by operations
also was used over the past three years to pay dividends of $5.2 billion, to
finance $5.3 billion of the Company's share repurchase program and to fund business
acquisitions, including the purchase of patents and trademarks, at a cost of
$555 million. The Company's share repurchase program authorizes the Company
to purchase common stock from time to time in the open market or through private
transactions as market conditions permit. _____________________________________________________________________________________________ 27 During 2000, the Company
purchased 40 million shares of common stock at a cost of $2.3 billion, bringing
the total shares acquired since the program's inception to 340 million. In September
2000, the Company announced a $2 billion increase in the stock repurchase program
authorization. During the past three years, the Company has repurchased 93 million
shares at a cost of $5.3 billion. Employment levels for continuing
operations of 44,004 at December 2000 decreased from prior year levels of 45,955.
Sales per employee improved to $414 thousand in 2000 from $367 thousand in 1999
and $324 thousand in 1998. Return on Stockholders'
Equity, excluding nonrecurring items, improved over the last three years and
was 48.3% in 2000, 46.7% in 1999 and 43.5% in 1998. Forward Looking Information This Form 10-K Annual Report,
and other written and oral statements that the Company makes from time to time,
contain certain forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 regarding, among other things, statements
relating to goals, plans and projections with respect to the Company's financial
position, results of operations, market position, product development and business
strategy. These statements may be identified by the fact that they use words
such as "anticipate," "estimate," "expect," "project,"
"intend," "plan," "believe," and other words and
terms of similar meaning in connection with any discussion of future operating
or financial performance. Such forward-looking statements are based on current
expectations and involve inherent risks and uncertainties, including factors
that could delay, divert or change any of them, and could cause actual outcomes
and results to differ materially from current expectations. These factors include,
among other things, market factors, competitive product development, governmental
regulations and legislation, patent positions and litigation. Further details
and a discussion of these and other risks and uncertainties, are included in
Exhibit 99 to this Form 10-K Annual Report. We undertake no obligation to publicly
update any forward-looking statement, whether as a result of new information,
future events or otherwise. _____________________________________________________________________________________________ 28 Item 8. FINANCIAL
STATEMENTS AND SUPPLEMENTARY DATA. BRISTOL-MYERS
SQUIBB COMPANY CONSOLIDATED
STATEMENT OF EARNINGS (in millions
except per share amounts) Year Ended December 31,
EARNINGS
2000
1999
1998
Net Sales
$18,216
$16,878
$15,061
Expenses:
Cost of products sold
4,759
4,542
3,896
Marketing, selling and
administrative
3,860
3,789
3,685
Advertising and product
promotion
1,672
1,549
1,518
Research and development
1,939
1,759
1,506
Special charge
-
-
800
Provision for restructuring
508
-
157
Gain on sale of business
(160)
-
(201)
Other
160
81
62
12,738
11,720
11,423
Earnings from Continuing
Operations Before Income Taxes 3,638 Provision for income taxes
1,382
1,369
888
Earnings from Continuing
Operations
4,096
3,789
2,750
Discontinued Operations
Net earnings
375
378
391
Net gain on disposal
240
-
-
615
378
391
Net Earnings
$4,711
$4,167
$3,141
Earnings Per Common Share
Basic
Earnings from Continuing
Operations
$2.08
$1.91
$1.38
Discontinued Operations
Net earnings .19
.19
.20
Net gain on disposal .13
-
-
.32
19
.20
Net Earnings
$2.40
$2.10
$1.58
Diluted
Earnings from Continuing
Operations
$2.05
$1.87
$1.36
Discontinued Operations
Net earnings .19
.19
.19
Net gain on disposal .12
-
-
.31
.19
.19
Net Earnings
$2.36
$2.06
$1.55
Average Common Shares
Outstanding
Basic
1,965
1,984
1,987
Diluted
1,997
2,027
2,031
Dividends Per Common Share
$.98
$.86
$.78
The accompanying notes are an
integral part of these financial statements. _____________________________________________________________________________________________ 29 BRISTOL-MYERS
SQUIBB COMPANY CONSOLIDATED
STATEMENT OF COMPREHENSIVE
INCOME AND RETAINED EARNINGS (in millions except per share
amounts) Year Ended December 31,
2000
1999
1998
COMPREHENSIVE INCOME
Net Earnings
$4,711
$4,167
$3,141
Other Comprehensive Income:
Foreign currency translation
(282)
(212)
(86)
Tax effect
(5)
18
(3)
Total Other Comprehensive
Income
(287)
(194)
(89)
Comprehensive Income
$4,424
$3,973
$3,052
RETAINED EARNINGS
Retained Earnings, January
1
$15,000 $12,540
$10,950
Net earnings
4,711
4,167
3,141
19,711
16,707
14,091
Less dividends
1,930
1,707
1,551
Retained Earnings, December
31
$17,781
$15,000
$12,540
The accompanying notes are an
integral part of these financial statements. _____________________________________________________________________________________________ 30 BRISTOL-MYERS
SQUIBB COMPANY CONSOLIDATED
BALANCE SHEET ASSETS (dollars
in millions) December 31,
ASSETS
2000
1999
1998
Current Assets:
Cash and cash equivalents
$3,182
$2,720
$2,244
Time deposits and marketable
securities
203
237
285
Receivables, net of allowances
3,662
3,272
3,190
Inventories
1,831
2,126
1,873
Prepaid expenses
946
912
1,190
Total Current Assets
9,824
9,267
8,782
Property, Plant and Equipment,
net
4,548
4,621
4,429
Insurance Recoverable
262
468
523
Excess of cost over net tangible
assets arising from business acquisitions Other Assets
1,508
1,256
951
Total Assets
$17,578
$17,114
$16,272
The accompanying notes are an
integral part of these financial statements. _____________________________________________________________________________________________ 31 BRISTOL-MYERS
SQUIBB COMPANY CONSOLIDATED
BALANCE SHEET LIABILITIES
AND STOCKHOLDERS' EQUITY (dollars
in millions) December 31,
LIABILITIES 2000
1999
1998
Current Liabilities:
Short-term borrowings
$162
$432
$482
Accounts payable
1,702
1,657
1,380
Accrued expenses
2,881
2,367
2,302
Product liability
186
287
877
US and foreign income taxes
payable
701
794
750
Total Current Liabilities
5,632
5,537
5,791
Other Liabilities
1,430
1,590
1,541
Long-Term Debt
1,336
1,342
1,364
Total Liabilities
8,398
8,469
8,696
STOCKHOLDERS' EQUITY
Preferred stock, $2 convertible
series: Authorized 10 million shares;
issued and outstanding 9,864 in 2000, 10,977 in 1999 and 11,684
in 1998, liquidation value of $50 per share
-
-
-
Common stock, par value of
$.10 per share: Authorized 4.5 billion shares;
issued 2,197,900,835 in 2000, 2,192,970,504 in 1999 and 2,188,316,808
in 1998
Capital in excess of par value
of stock
2,002
1,533
1,075
Other Comprehensive Income
(1,103)
(816)
(622)
Retained earnings
17,781
15,000
12,540
18,900
15,936
13,212
Less cost of treasury stock
- 244,365,726 common shares in 2000, 212,164,851 in 1999 and 199,550,532
in 1998
Total Stockholders' Equity
9,180
8,645
7,576
Total Liabilities and Stockholders'
Equity
$17,578
$17,114
$16,272
The accompanying
notes are an integral part of these financial statements. _____________________________________________________________________________________________ 32 BRISTOL-MYERS
SQUIBB COMPANY CONSOLIDATED
STATEMENT OF CASH FLOWS (dollars
in millions) Year Ended December
31,
2000
1999
1998
Cash Flows From Operating Activities:
Net earnings
$4,711
$4,167
$3,141
Depreciation and amortization
746
678
625
Special Charge
-
-
800
Provision for restructuring/other
542
-
201
Gain on sale of businesses/product divestitures
(562)
-
(201)
Other operating items
10
(79)
(1)
Receivables
(494)
(176)
(253)
Inventories
75
(317)
(139)
Accounts payable and accrued
expenses
256
258
284
Income taxes
(54)
477
34
Product liability
(173)
(726)
(715)
Insurance recoverable
100
59
196
Pension Contribution
(230)
-
-
Other assets and liabilities
(275)
(117)
(190)
Net Cash Provided by Operating
Activities
4,652
4,224
3,782
Cash Flows From Investing Activities:
Proceeds from sales of time deposits and marketable
securities
45
51
309
Purchases of time deposits
and marketable securities
(10)
(4)
(256)
Additions to fixed assets
(589)
(709)
(788)
Proceeds from sale of businesses/product
divestitures
848
134
417
Businesses acquisitions(including purchase
of trademarks/patents)
Other, net
(82)
35
65
Net Cash Provided by (Used in)
Investing Activities
16
(759)
(346)
Cash Flows From Financing Activities:
Short-term borrowings
(247)
(26)
(81)
Long-term debt
6
(54)
73
Issuances of common stock under
stock plans
352
254
478
Purchases of treasury stock
(2,338)
(1,419)
(1,561)
Dividends paid
(1,930)
(1,707)
(1,551)
Net Cash Used in Financing Activities
(4,157)
(2,952)
(2,642)
Effect of Exchange Rates on Cash
(49)
(37)
(6)
Increase in Cash and Cash Equivalents
462
476
788
Cash and Cash Equivalents at
Beginning of Period
2,720
2,244
1,456
Cash and Cash Equivalents at
End of Period
$3,182
$2,720
$2,244
The accompanying notes are an
integral part of these financial statements. _____________________________________________________________________________________________ 33 BRISTOL-MYERS SQUIBB COMPANY NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS (dollars in millions) Note 1 ACCOUNTING
POLICIES Basis of Consolidation
- The consolidated financial statements include the accounts of Bristol-Myers
Squibb Company and all of its subsidiaries. Cash and Cash Equivalents
- Cash and cash equivalents primarily include securities with a maturity of
three months or less at the time of purchase, recorded at cost, which approximates
market value. Time Deposits and Marketable
Securities - Time deposits and marketable securities are available for sale
and are recorded at fair value, which approximates cost. Inventory Valuation -
Inventories are generally stated at average cost, not in excess of market. Capital Assets and Depreciation
- Expenditures for additions, renewals and betterments are capitalized at cost.
Depreciation is generally computed by the straight-line method based on the
estimated useful lives of the related assets. The estimated useful lives of
the major classes of depreciable assets are 50 years for buildings and 3 to
40 years for machinery, equipment and fixtures. Excess of Cost over Net
Tangible Assets - The excess of cost over net tangible assets received in business
acquisitions is being amortized on a straight-line basis over periods not exceeding
40 years. The excess of cost over net tangible assets is periodically reviewed
for impairment based on an assessment of future operations (including cash flows)
to ensure that the excess of cost over net tangible assets is appropriately
valued. Product Liability - Accruals
for product liability are recorded, on an undiscounted basis, when it is probable
that a liability has been incurred and the amount of the liability can be reasonably
estimated, based on existing information. These accruals are adjusted periodically
as assessment efforts progress or as additional information becomes available.
Receivables for related insurance or other third-party recoveries for product
liabilities are recorded, on an undiscounted basis, when it is probable that
a recovery will be realized. Insurance recoverable recorded on the balance sheet
has, in general, payment terms of two years or less. Revenue Recognition -
Revenue from product sales is recognized upon shipment to customers. Earnings Per Share -
Basic earnings per common share are computed using the weighted average number
of shares outstanding during the year. Diluted earnings per common share are
computed using the weighted average number of shares outstanding during the
year, plus the incremental shares outstanding assuming the exercise of dilutive
stock options. Reclassifications - Certain reclassifications
have been made to prior year amounts to conform with current year presentation. _____________________________________________________________________________________________ 34 BRISTOL-MYERS SQUIBB COMPANY NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS (dollars in millions) Note 2 DISCONTINUED
OPERATIONS On September 28, 2000,
the Company announced the planned divestitures of its Clairol and Zimmer businesses.
The Company expects these businesses to be divested in 2001. Accordingly, the
operations of Clairol (which includes its Matrix Essentials, Inc. "Matrix" affiliate)
and Zimmer have been reflected as discontinued operations in the accompanying
consolidated statement of earnings. In 2000, the Company
completed the sale of Matrix to Cosmair, Inc., a wholly owned US subsidiary
of L'Oreal S.A., resulting in a pretax gain of $402 million ($240 million after
taxes). This gain is included in gain on disposal of discontinued operations. The net sales and earnings of discontinued
operations are as follows: Year Ended December
31,
2000
1999
1998
Net sales
$3,115
$3,344
$3,223
Earnings before income taxes
606
609
630
Income taxes
231
231
239
Net earnings from discontinued operations
$375
$378
$391
Earnings before income taxes for the
years ended December 31, 2000 and 1998 include restructuring charges of $34
million and $44 million, respectively. The consolidated balance
sheet and consolidated statement of cash flows include the Clairol and Zimmer
businesses. The net assets of discontinued operations expected to be disposed
at December 31, 2000, 1999 and 1998 were as follows: December 31,
2000
1999
1998
Current assets
$866
$1,141
$1,055
Property, Plant and Equipment,
net
340
396
375
Noncurrent Assets
276
280
236
Less:
Liabilities (principally current)
558
622
466
Net assets of discontinued operations
$924
$1,195
$1,200
The Company uses a centralized
approach to cash management and financing of its operations and, accordingly,
the Company did not allocate debt to these businesses. Cash flows from operating
and investing activities of discontinued operations for the years ended December
31, 2000, 1999 and 1998 were $988 million (including $438 million of net proceeds
from the sale of Matrix), $261 million and $289 million, respectively. _____________________________________________________________________________________________ 35 BRISTOL-MYERS SQUIBB COMPANY NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS (dollars in millions) Note 3 ACQUISITIONS
AND DIVESTITURES In 2000, the company
completed the sale of three pharmaceutical products - Estrace Cream, Ovcon 35
and Ovcon 50 as well as its Sea Breeze brand in Japan, resulting in a pretax
gain of $160 million, recorded in continuing operations. In June 1999, the company
acquired CAL-C-TOSE*, a nutritional milk modifier. In September 1999, the company
entered into a development and commercialization agreement for aripiprazole,
a novel drug under study in phase III trials as a treatment for schizophrenia,
with Otsuka Pharmaceutical Co., Ltd. In December 1999, the company completed
the sale of Laboratori Guieu, a gynecological, pediatric and dermatological
products business headquartered in Milan, Italy. The gain on the sale was not
material. In 1998, the company
acquired Dong-A Biotech Co., Ltd., a marketer and distributor of pharmaceutical
products in South Korea. In 1998, the company divested its Ban brand of antiperspirants
and deodorants, A/S GEA, a Denmark-based generic drug business, and Hexachimie,
a specialty chemical manufacturer based in France, resulting in a combined pretax
gain of $201 million. Note 4 RESTRUCTURING During 2000, the Company
recorded pretax charges of $508 million for continuing operations. These charges
were primarily for restructuring activities related to workforce reductions,
downsizing and streamlining of operations in certain international markets and
the ConvaTec business, and the reorganization of the Company's Global Business
Services. The $508 million of restructuring charges consisted of $298 million
of employee termination benefits for approximately 5,200 employees, $136 million
of asset write-downs related to the closure of manufacturing and research facilities
and $74 million of other expenses. The $398 million liability originally recorded
in accrued expenses was reduced to $247 million at December 31, 2000. The Company
expects to substantially complete these restructuring activities by mid-2001. In 1998, the Company
recorded pretax charges of $157 million for continuing operations. These restructuring
charges consisted primarily of asset write-downs and employee-related costs
related to the consolidation and closure of plants and facilities. 36 BRISTOL-MYERS SQUIBB COMPANY NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS (dollars in millions) Note 5 EARNINGS
PER SHARE The computations for
basic earnings per common share and diluted earnings per common share are as
follows:
Year Ended December
31,
2000
1999
1998
Net Earnings from Continuing Operations
$4,096
$3,789
$2,750
Discontinued Operations
Net Earnings
375
378
391
Net Gain on Disposal
240
-
-
615
378
391
Net Earnings
$4,711
$4,167
$3,141
Basic:
Average Common Shares Outstanding
1,965
1,984
1,987
Earnings from Continuing Operations
$2.08
$1.91
$1.38
Discontinued Operations
Net Earnings
.19
.19
.20
Net Gain on Disposal
.13
-
-
.32
.19
.20
Net Earnings $2.40
$2.10
$1.58
Diluted: Average Common Shares Outstanding 1,984
Incremental Shares Outstanding Assuming the Exercise
of Dilutive Stock Options Earnings from Continuing Operations Discontinued Operations Net Earnings _____________________________________________________________________________________________ 37 BRISTOL-MYERS SQUIBB COMPANY NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS (dollars in millions) Note 6 OTHER
INCOME AND EXPENSES Year Ended December 31,
2000
1999
1998
Interest income
$157
$107
$87
Interest expense
(108)
(130)
(154)
Other - net
(209)
(58)
5
$(160)
$(81)
$(62)
Cash payments for interest
were $112 million, $119 million and $157 million in 2000, 1999 and 1998, respectively. Note 7 PROVISION
FOR INCOME TAXES The components of earnings
from continuing operations before income taxes were: December 31,
2000
1999
1998
US
$2,570
$3,203
$2,191
Non-U.S.
2,908
1,955
1,447
$5,478
$5,158
$3,638
The above amounts are
categorized based on the location of the taxing authorities. In 2000, the Company
continued to convert domestic Puerto Rico operations to non-U.S. operations. The provision for income
taxes attributable to continuing operations consisted of: Year Ended December 31,
2000
1999
1998
Current:
US
$900
$602
$658
Non-U.S.
447
346
271
1,347
948
929
Deferred:
US
44
369
(71)
Non-U.S.
(9)
52
30
35
421
(41)
$1,382
$1,369
$888
_____________________________________________________________________________________________ 38 BRISTOL-MYERS SQUIBB COMPANY NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS (dollars in millions) The Company's provision
for income taxes in 2000, 1999 and 1998 was different from the amount computed
by applying the statutory United States Federal income tax rate to earnings
before income taxes, as a result of the following: % of Earnings
Before Income Taxes
2000
1999
1998
US statutory rate
35.0%
35.0%
35.0%
Effect of operations in Ireland
and Puerto Rico
(12.2)
(8.1)
(7.8)
Special charge
-
-
(.7)
State and local taxes
1.2
.5
.4
Foreign/ Other
1.2
(.9)
(2.5)
25.2%
26.5%
24.4%
Prepaid taxes at December
31, 2000, 1999 and 1998 were $537 million, $567 million and $809 million, respectively.
The deferred income tax liability, included in Other Liabilities, at December
31, 2000, 1999 and 1998 was $425 million, $445 million and $277 million, respectively.
The components of prepaid
and deferred income taxes consisted of: December 31,
2000
1999
1998
Depreciation
$(285)
$(278)
$(278)
Postretirement and pension benefits
49
120
195
Product liability
(54)
(13)
248
Restructuring
142
25
55
Other
260
268
312
$112
$122
$532
Income taxes paid during
the year were $1,620 million, $805 million and $654 million in 2000, 1999 and
1998, respectively. The Company has settled
its United States Federal income tax returns with the Internal Revenue Service
through 1991. United States Federal
income taxes have not been provided on substantially all of the unremitted earnings
of non-U.S. subsidiaries, since it is management's practice and intent to reinvest
such earnings in the operations of these subsidiaries. The total amount of the
net unremitted earnings of non-U.S. Subsidiaries was approximately $6.0 billion
at December 31, 2000. 39 BRISTOL-MYERS SQUIBB COMPANY NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS (dollars in millions) Note 8 INVENTORIES December 31,
2000
1999
1998
Finished goods
$890
$1,472
$1,209
Work in process
473
302
236
Raw and packaging materials
468
352
428
$1,831
$2,126
$1,873
Inventories of discontinued
operations constituted approximately 18% of total Company inventory for the
year ended December 31, 2000 and 23% of total Company inventory for the years
ended December 31, 1999 and 1998. Note 9 PROPERTY,
PLANT AND EQUIPMENT December 31,
2000
1999
1998
Land
$167
$170
$176
Buildings
3,142
3,096
2,875
Machinery, equipment and fixtures
4,059
4,093
3,885
Construction in progress
558
482
572
7,926
7,841
7,508
Less accumulated depreciation
3,378
3,220
3,079
$4,548
$4,621
$4,429
Depreciation expense for the years ended
December 31, 2000, 1999 and 1998 was $408 million, $384 million and $359 million,
respectively. Property, plant and equipment
of discontinued operations constituted approximately 8% of total Company property,
plant and equipment for the years ended December 31, 2000, 1999 and 1998. Note 10 SHORT-TERM
BORROWINGS AND LONG-TERM DEBT Included in short-term
borrowings were amounts due to banks, primarily foreign banks, of $152 million,
$245 million and $272 million at December 31, 2000, 1999 and 1998, respectively,
and current installments of long-term debt of $10 million at December 31, 2000
and 1999 and $43 million at December 31, 1998. Also included in short-term borrowings
at December 31, 1999 and 1998, was $177 million and $167 million, respectively,
of commercial paper outstanding. The average interest rate on short-term borrowings
was 7.97% and on current installments of long-term debt was 6.38% at December
31, 2000. During 2000, the Company
renewed two credit facilities, aggregating $500 million, with a syndicate of
lenders as support for its commercial paper program. The credit facilities consist
of a $250 million, 364-day credit facility, which may be renewed annually with
the consent of the lenders for an additional 364-day period and a $250 million,
five-year credit facility, extendible at each anniversary date with the consent
of the lenders. There were no borrowings outstanding under the credit facilities
at December 31, 2000. In addition, the Company has unused short-term lines of
credit with foreign banks of $337 million. _____________________________________________________________________________________________ 40 BRISTOL-MYERS SQUIBB COMPANY NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS (dollars in millions) The components of long-term
debt were: December 31,
2000
1999
1998
6.80% Debentures, due in 2026
$345
$345
$345
7.15% Debentures, due in 2023
344
344
344
6.875% Debentures, due in 2097
296
296
296
Various Rate Yen Term Loans, due
in 2003
69
71
71
2.14% Yen Notes, due in 2005
60
62
55
1.73% Yen Notes, due in 2003
60
62
54
3.51% Deutsche Mark Interest on
Yen Principal Term Loan, due in 2005 5.75% Industrial Revenue Bonds,
due in 2024
34
34
34
5.00% Yen Term Loan, paid in 1999
-
-
29
2.83% Yen Term Loan, due in 2002
28
28
25
Variable Rate Industrial Revenue
Bonds, due in 2030
15
-
-
Capitalized Leases
19
22
29
Other, 4.50% to 7.9%,due in varying
amounts through 2014 11
21
32
$1,336
$1,342
$1,364
Note 11 STOCKHOLDERS'
EQUITY Changes in capital shares
and capital in excess of par value of stock were: Shares of Common Stock
Capital in Excess of Par
Balance, December 31, 1997
1,083,253,703
90,069,383
$544
Effect of two-for-one stock split
1,083,253,703
90,069,383
(108)
Issued pursuant to stock plans
and options
16,931,302
(11,189,998)
700
Conversions of preferred stock
21,230
-
-
Purchases
-
30,601,764
-
Other
4,856,870
-
(61)
Balance, December 31, 1998
2,188,316,808
199,550,532
1,075
Issued pursuant to stock plans
and options
4,641,700
(9,694,871)
458
Conversions of preferred stock
11,996
-
-
Purchases
-
22,309,190
-
Balance, December 31, 1999
2,192,970,504
212,164,851
1,533
Issued pursuant to stock plans
and options
4,911,457
(8,197,329)
469
Conversions of preferred stock
18,874
-
-
Purchases
-
40,398,204
-
Balance, December 31, 2000
2,197,900,835
244,365,726
$2,002
_____________________________________________________________________________________________ 41 BRISTOL-MYERS SQUIBB COMPANY NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS (dollars in millions) Each share of the Company's
preferred stock is convertible into 16.96 shares of common stock and is callable
at the Company's option. The reductions in the number of issued shares of preferred
stock in 2000, 1999 and 1998 were due to conversions into shares of common stock. Dividends per common
share were $.98 in 2000, $.86 in 1999 and $.78 in 1998. Stock Compensation
Plans Under the Company's 1997
Stock Incentive Plan, officers, directors and key employees may be granted options
to purchase the Company's common stock at no less than 100% of the market price
on the date the option is granted. Options generally become exercisable in installments
of 25% per year on each of the first through the fourth anniversaries of the
grant date and have a maximum term of 10 years. Additionally, the plan provides
for the granting of stock appreciation rights whereby the grantee may surrender
exercisable options and receive common stock and/or cash measured by the excess
of the market price of the common stock over the option exercise price. The
plan also provides for the granting of performance-based stock options to certain
key executives. Under the terms of the
1997 Stock Incentive Plan, as amended, additional shares are authorized in the
amount of 0.9% of the outstanding shares per year through 2002. The plan incorporates
the Company's long-term performance awards. In addition, the 1997
Stock Incentive Plan provides for the granting of up to 20,000,000 shares of
common stock to key employees, subject to restrictions as to continuous employment
except in the case of death or normal retirement. Restrictions generally expire
over a five-year period from date of grant. Compensation expense is recognized
over the restricted period. At December 31, 2000, a total of 1,821,194 restricted
shares were outstanding under the plan. Under the TeamShare Stock
Option Plan, all full-time employees, excluding key executives, meeting certain
years of service requirements are granted options to purchase the Company's
common stock at the market price on the date the options are granted. The Company
has authorized 62,000,000 shares for issuance under the plan. As of December
31, 2000, a total of 28,455,134 shares have been exercised under the plan. The Company applies Accounting
Principles Board Opinion No. 25, Accounting for Stock Issued to Employees,
and related interpretations in accounting for its plans. Accordingly, no compensation
expense has been recognized for its stock-based compensation plans other than
for restricted stock and performance-based awards. Had compensation cost for
the Company's other stock option plans been determined based upon the fair value
at the grant date for awards under these plans consistent with the methodology
prescribed under Statement of Financial Accounting Standards No. 123, Accounting
for Stock-Based Compensation, the Company's net income and earnings per
share would have been reduced by approximately $218 million, or $.11 per common
share, basic and diluted, in 2000, $198 million, or $.10 per common share, basic
and diluted, in 1999 and $136 million, or $.07 per common share, basic and diluted,
in 1998. The fair value of the options granted during 2000, 1999 and 1998 was
estimated as $17.17 per common share, $17.37 per common share and $11.80 per
common share, respectively, on the date of grant using the Black-Scholes option-pricing
model with the following assumptions: _____________________________________________________________________________________________ 42 BRISTOL-MYERS SQUIBB COMPANY NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS (dollars in millions) 2000
1999
1998
Dividend yield
1.5%
2.4%
3.1%
Volatility
24.5%
21.8%
18.2%
Risk-free interest rate
6.3%
5.5%
6.3%
Assumed forfeiture rate
3.0%
3.0%
3.0%
Expected life (years)
7
7
7
Stock option transactions
were: Shares of Common Stock
Weighted Average Exercise Price
of Shares Under Plan
Available for Option
Under Plan
Balance, December 31, 1997
18,272,550
66,300,902
40.08
Effect of two-for-one stock split
18,272,550
66,300,902
-
Authorized
17,877,318
-
-
Granted
(35,498,350)
35,498,350
51.40
Exercised
-
(36,697,942)
16.30
Lapsed
2,382,746
(2,382,746)
34.27
Balance, December 31, 1998
21,306,814
129,019,466
29.47
Authorized
19,898,896
-
-
Granted
(24,221,950)
24,221,950
65.39
Exercised
-
(20,425,070)
20.41
Lapsed
3,552,037
(3,552,037)
42.51
Balance, December 31, 1999
20,535,797
129,264,309
37.27
Authorized
17,827,251
-
-
Granted
(20,851,475)
20,851,475
49.72
Exercised
-
(17,605,519)
25.26
Lapsed
3,665,969
(3,665,969)
58.12
Balance, December 31, 2000
21,177,542
128,844,296
$40.32
_____________________________________________________________________________________________ 43 BRISTOL-MYERS SQUIBB COMPANY NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS (dollars in millions) The following table summarizes
information concerning currently outstanding and exercisable options: Options Outstanding
Options Exercisable
Range of Exercise Prices
Number Outstanding
Weighted Average Remaining
Contractual Life
Weighted Average Exercise
Price Number Exercisable
Weighted Average Exercise
Price $10 - $20
28,016,861
3.27
$15.54
28,016,861
$15.54
$20 - $30
18,124,623
5.44
24.05
18,124,623
24.05
$30 - $40
10,657,762
6.18
33.68
8,169,537
33.68
$40 - $50
18,976,088
8.77
45.14
1,146,224
41.46
$50 - $60
28,272,049
7.32
51.95
8,398,277
51.01
$60 - up
24,796,913
8.32
66.10
6,984,005
65.41
128,844,296
70,839,527
At December 31, 2000,
209,405,290 shares of common stock were reserved for issuance pursuant to stock
plans, options and conversions of preferred stock. Options related to discontinued
operations and included in the above amounts are not material. Note 12 FINANCIAL
INSTRUMENTS Foreign exchange option
contracts and, to a lesser extent, forward contracts, are used to hedge anticipated
foreign currency transactions, primarily intercompany inventory purchases expected
to occur within the next year. The Company has exposures
to net foreign currency denominated assets and liabilities, which approximated
$1,781 million, $2,179 million and $2,310 million at December 31, 2000, 1999
and 1998, respectively, primarily in Europe, Japan and Mexico. The Company mitigates
the effect of these exposures through third-party borrowings. The exposures
to net foreign currency denominated assets and liabilities related to discontinued
operations and included in the above amounts are not material. The risk of loss associated
with the types of foreign exchange option contracts entered into by the Company
is limited to premium amounts paid for the option contracts. Premiums are deferred
in Prepaid Expenses and amortized in the consolidated statement of earnings
(in the Other caption) over the time frame of the underlying hedged transaction.
Gains related to the option contracts, which qualify as hedges of foreign currency
anticipated transactions, are recognized in earnings when the hedged transactions
are recognized. Gains and losses on foreign exchange forward contracts are recognized
in the basis of the underlying transaction being hedged. The notional amounts
of the Company's foreign exchange option contracts at December 31, 2000, 1999
and 1998 were $1,395 million, $1,762 million and $1,307 million, respectively.
The notional amounts of foreign exchange contracts related to discontinued operations
and included in the above amounts are not material. _____________________________________________________________________________________________ 44 BRISTOL-MYERS SQUIBB COMPANY NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS (dollars in millions) The Company does not anticipate
any material adverse effect on its financial position resulting from its involvement
in these instruments, nor does it anticipate nonperformance by any of its counterparties. At December 31, 2000,
1999 and 1998, the carrying value of all financial instruments, both short-
and long-term, approximated their fair values. Note 13 LEASES Minimum rental commitments
under all noncancelable operating leases, primarily real estate, in effect at
December 31, 2000 were: Years Ending December 31,
2001
$102
2002
81
2003
61
2004
48
2005
42
Later years
141
Total minimum payments
475
Less total minimum sublease rentals
90
Net minimum rental commitments
$385
Minimum rental commitments
and operating lease rental expense related to discontinued operations and included
in the above amounts are not material. Operating lease rental expense (net of
sublease rental income of $21 million in 2000, $24 million in 1999 and $27 million
in 1998) was $85 million in 2000, $87 million in 1999 and $102 million in 1998. _____________________________________________________________________________________________ 45 BRISTOL-MYERS SQUIBB COMPANY NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS (dollars in millions) Note 14 SEGMENT
INFORMATION The Company operates
in one significant business segment - medicines. Operations of the Nutritional
and ConvaTec businesses are not material and share many of the same economic
and operating characteristics as the medicines business. Most of the pharmaceutical
products are distributed through wholesalers. Two wholesalers accounted for
approximately 13% and 12% of net sales from continuing operations in 2000. Sales of selected products
and product categories are as follows: Year Ended December 31,
2000
1999
1998
PRAVACHOL*
$1,817
$1,704
$1,643
GLUCOPHAGE
1,732
1,317
862
TAXOL*
1,592
1,481
1,206
Oncology Therapeutics Network
1,080
894
657
PLAVIX
903
547
144
BUSPAR*
709
605
531
PARAPLATIN*
690
600
525
ZERIT*
618
605
551
Infant formulas
1,212
1,233
1,203
Ostomy
428
449
464
GEOGRAPHIC AREAS Net Sales
2000
1999
1998
United States
$12,114
$10,631
$8,955
Europe, Mideast and Africa
3,414
3,738
3,665
Other Western Hemisphere
1,314
1,279
1,398
Pacific
1,374
1,230
1,043
Net sales
$18,216
$16,878
$15,061
Year-End Assets
2000
1999
1998
United States
$10,640
$9,708
$9,348
Europe, Mideast and Africa
4,453
4,942
4,620
Other Western Hemisphere
1,376
1,432
1,322
Pacific
1,109
1,032
982
Total Assets
$17,578
$17,114
$16,272
_____________________________________________________________________________________________ 46 BRISTOL-MYERS SQUIBB COMPANY NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS (dollars in millions) Note 15 RETIREMENT
PLANS The Company and certain
of its subsidiaries have defined benefit pension plans and defined contribution
plans for regular full-time employees. The principal pension plan is the Bristol-Myers
Squibb Retirement Income Plan. The Company's funding policy is to contribute
amounts to provide for current service and to fund past service liability. Plan
benefits are primarily based on years of credited service and on the participants'
compensation. Plan assets principally consist of equity and fixed income securities. The Company's share of
the components of total net pension expense and pension assets and obligation,
related to continuing operations as well as any curtailment gain or loss, has
not yet been determined, and therefore the following information relates to
the Company's pension plan including discontinued operations. The amounts related
to discontinued operations are estimated to represent approximately 10% of total
pension obligations and assets of the Company's retirement plans. Cost for the Company's
defined benefit plans included the following components: Year Ended December 31,
2000
1999
1998
Service cost - benefits earned
during the year
$159
$161
$132
Interest cost on projected benefit
obligation
235
217
207
Expected earnings on plan assets
(332)
(285)
(258)
Net amortization and deferral
3
4
(1)
Net pension expense
$65
$97
$80
The weighted average actuarial
assumptions for the Company's pension plans were as follows: December 31,
2000
1999
1998
Discount rate
7.8%
7.8%
7.0%
Compensation increase
4.8%
4.8%
4.3%
Long-term rate of return
10.0%
10.0%
10.0%
Changes in benefit obligation
and plan assets were: December 31,
2000
1999
1998
Benefit obligation at beginning
of year
$3,137
$3,216
$2,928
Service cost - benefits earned
during the year
159
161
132
Interest cost on projected benefit
obligation
235
217
207
Actuarial (gains) and losses
22
(203)
160
Benefits paid
(259)
(254)
(211)
Benefit obligation at end of year
$3,294
$3,137
$3,216
_____________________________________________________________________________________________ 47 BRISTOL-MYERS SQUIBB COMPANY NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS (dollars in millions) December 31,
2000
1999
1998
Fair value of plan assets at beginning
of year
$3,490
$3,137
$2,949
Actual earnings on plan assets
25
561
359
Employer contribution
267
46
40
Benefits paid
(259)
(254)
(211)
Fair value of plan assets at end
of year
$3,523
$3,490
$3,137
Plan assets in excess of (less
than) projected benefit obligation
$229
$353
$(79)
Unamortized net obligation (assets)
at adoption
7
(2)
(33)
Unrecognized prior service cost
55
37
48
Unrecognized net (gains) and losses
(83)
(385)
87
Net amount recognized
$208
$3
$23
Amounts recognized in
the consolidated balance sheet consist of: Prepaid benefit cost
405
181
187
Accrued benefit liability
(214)
(190)
(190)
Other asset
17
12
26
Net amount recognized
$208
$3
$23
The projected benefit
obligation, accumulated benefit obligation, and fair value of plan assets for
the pension plans with accumulated benefit obligations in excess of plan assets
were $332 million, $254 million and $47 million, respectively, as of December
31, 2000, $319 million, $245 million and $56 million, respectively, as of December
31, 1999 and $288 million, $230 million and $40 million, respectively, as of
December 31, 1998. This is primarily attributable to an unfunded benefit equalization
plan. The principal defined
contribution plan is the Bristol-Myers Squibb Savings and Investment Program.
The Company's contribution is based on employee contributions and the level
of company match. Company contributions to the plan were $53 million in 2000,
$49 million in 1999 and $45 million in 1998. 48 BRISTOL-MYERS SQUIBB COMPANY NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS (dollars in millions) Note 16 POSTRETIREMENT
BENEFIT PLANS OTHER THAN PENSIONS The Company provides
comprehensive medical and group life benefits to substantially all US retirees
who elect to participate in the Company's comprehensive medical and group life
plans. The medical plan is contributory. Contributions are adjusted periodically
and vary by date of retirement and the original retiring company. The life insurance
plan is noncontributory. Plan assets principally consist of equity securities
and fixed income securities. The Company's share of
the components of total postretirement benefit expense and postretirement benefit
assets and obligation, related to continuing operations as well as any curtailment
gain or loss, has not yet been determined, and therefore the following information
relates to the Company's postretirement benefit plans including discontinued
operations. Cost for the Company's postretirement
benefit plans included the following components: Year Ended December 31,
2000
1999
1998
Service cost - benefits earned
during the year
$9
$10
$8
Interest cost on accumulated postretirement
benefit obligation
39
36
35
Expected earnings on plan assets
(17)
(13)
(11)
Net amortization and deferral
(2)
1
(3)
Net postretirement benefit expense
$29
$34
$29
The weighted average
actuarial assumptions for the Company's postretirement benefit plans were as
follows: December 31,
2000
1999
1998
Discount rate
7.8%
7.8%
7.0%
Long-term rate of return
10.0%
10.0%
10.0%
Changes in benefit obligation
and plan assets were: Year Ended December 31,
2000
1999
1998
Benefit obligation at beginning
of year
$521
$507
$495
Service cost - benefits earned
during the year
9
10
8
Interest cost on accumulated post-retirement benefit
obligation
39
36
35
Plan participants' contributions
2
2
2
Plan amendments
-
(9)
(1)
Actuarial losses
21
16
6
Benefits paid
(44)
(41)
(38)
Benefit obligation at end of year
$548
$521
$507
_____________________________________________________________________________________________ BRISTOL-MYERS SQUIBB COMPANY NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS (dollars in millions) December 31,
2000
1999
1998
Fair value of plan assets at beginning
of year
$152
$128
$113
Actual earnings on plan assets
6
24
15
Employer contribution
63
39
36
Plan participants' contributions
2
2
2
Benefits paid
(44)
(41)
(38)
Fair value of plan assets at end of year
$179
$152
$128
Accumulated postretirement benefit
obligation in excess of plan assets Unrecognized prior service cost
(5)
(6)
3
Unrecognized net earnings
(22)
(55)
(60)
Accrued postretirement benefit expense
$(396)
$(430)
$(436)
For measurement purposes,
an annual rate of increase in the per capita cost of covered health care benefits
of 9% for participants was assumed for 2001; the rate was assumed to decrease
gradually to 5% in 2007 and to remain at that level thereafter. A one-percentage-point
change in assumed health care cost trend rates would have the following effects: 1-Percentage- 1-Percentage- Effect on the aggregate of the service
and interest cost components of net postretirement benefit expense
$1
$(1)
Effect on the accumulated postretirement
benefit obligation
$22
$(20)
Note 17 LITIGATION Various lawsuits, claims and proceedings
of a nature considered normal to its businesses are pending against the Company
and certain of its subsidiaries. The most significant of these are described
below. Breast Implant The Company, together with its subsidiary,
Medical Engineering Corporation (MEC), and certain other companies, has been
named as a defendant in a number of claims and lawsuits alleging damages for
personal injuries of various types resulting from polyurethane-covered breast
implants and smooth-walled breast implants formerly manufactured by MEC or a
related company. Of the more than 90,000 claims or potential claims against
the Company in direct lawsuits or through registration in the nationwide class
action settlement approved by the Federal District Court in Birmingham, Alabama
(the "Revised Settlement"), most have been dealt with through the Revised Settlement,
other settlements, or trial. As of December 31, 2000, the Company's contingent
liability in respect of breast implant claims was limited to residual unpaid
Revised Settlement obligations and to roughly 850 remaining opt-outs who have
pursued or may pursue their claims in court. 50 BRISTOL-MYERS SQUIBB COMPANY NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS (dollars in millions) As of December 31, 2000, approximately
4,790 US and 310 foreign breast implant recipients were plaintiffs in lawsuits
pending in federal and state courts in the United States and certain courts
in Canada and Australia. These figures include the claims of plaintiffs that
are in the process of being settled and/or dismissed. In these lawsuits, about
2,140 US and 68 foreign plaintiffs opted out of the Revised Settlement. The
lawsuits of the 2,650 US plaintiffs who did not opt out are expected to be dismissed
since these plaintiffs are among the estimated 74,000 women with MEC implants
who chose to participate in the nationwide settlement. Of the 2,140 opt-out
plaintiffs, an estimated 1,290 have claims based upon products that were not
manufactured or sold by MEC or that have been or are in the process of being
settled and/or dismissed. Accordingly, the number of remaining plaintiffs who
have pursued or may pursue their claims in court against the Company is roughly
850, as stated in the preceding paragraph. Under the terms of the Revised Settlement,
additional opt-outs are expected to be minimal since the deadline for US class
members to opt out has passed. In addition, the Company's remaining obligations
under the Revised Settlement Program are limited because most payments to "Current
Claimants" have already been made, no additional "Current Claims"
may be filed without court approval, and because payments of claims to so-called
"Other Registrants" and "Late Registrants" are limited by
the terms of the Revised Settlement. Separate class action settlements have
been approved in the provincial courts of Ontario and Quebec, and an agreement
has been reached under which other foreign breast implant recipients may settle
their claims. The Company believes it will be able to address remaining opt-out
claims as well as expected remaining obligations under the Revised Settlement
program within its reserves described below. In the fourth quarter of 1993, the Company
recorded a charge of $500 million before taxes ($310 million after taxes) in
respect of breast implant cases. The charge consisted of $1.5 billion for potential
liabilities and expenses, offset by $1.0 billion of expected insurance proceeds.
In the fourth quarters of 1994 and 1995, the Company recorded additional special
charges of $750 million before taxes ($488 million after taxes) and $950 million
before taxes ($590 million after taxes), respectively, related to breast implant
product liability claims. In the fourth quarter of 1998, the Company recorded
an additional special charge to earnings in the amount of $800 million before
taxes and increased its insurance receivable in the amount of $100 million,
resulting in a net charge to earnings of $433 million after taxes in respect
of breast implant product liability claims. During 2000, 1999 and 1998, cash
payments, net of insurance receipts, of $68 million, $631 million and $551 million,
respectively, were made related to the breast implant product liability claims.
At December 31, 2000, $186 million was included in current liabilities for breast
implant product liability claims. TAXOL* In 1997 and 1998, the Company filed several
lawsuits alleging that a number of generic drug companies infringed its patents
covering methods of administering paclitaxel when they filed Abbreviated New
Drug Applications seeking regulatory approval to sell paclitaxel. These actions
were consolidated for discovery in the US District Court for the District of
New Jersey. The Company does not assert a monetary claim against any of the
defendants, but seeks to prevent the defendants from marketing paclitaxel in
a manner that violates the Company's patents. The defendants have asserted that they
do not infringe the Company's patents and that these patents are invalid and
unenforceable. Some defendants also asserted counterclaims seeking damages for
alleged antitrust and unfair competition violations. The Company believes its
patents are valid and the counterclaims asserted are without merit. 51 BRISTOL-MYERS SQUIBB COMPANY NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS (dollars in millions) On January 4, 2000, the District Court
granted the Company's motion to dismiss certain of the antitrust and unfair
competition counterclaims. The Company's motion for summary judgment on the
remaining antitrust and unfair competition counterclaims was denied on March
17, 2000. On February 29, 2000, the District Court granted in part the generic
companies' summary judgment motions for invalidity by finding all claims of
the Company's patents invalid, except for claims limited to the treatment of
ovarian cancer. The District Court's opinion left for determination at trial
the validity of the claims of the Company's patents directed to the low dose,
three-hour administration of paclitaxel for ovarian cancer and denied the generic
companies' summary judgment motion arguing non-infringement of the Company's
patents. In order to pursue an immediate appellate
review of the District Court's invalidity findings, the Company voluntarily
relinquished all rights in the remaining ovarian tumor-specific claims of its
patents. On April 7, 2000, the District Court
granted the Company's request for an entry of judgment. The Company's appeal
of the District Court's judgment is pending before the Federal Circuit Court
of Appeals. If the Company is successful on appeal and the trial that would
follow a successful appeal, the Company believes its remaining patent rights
would apply to all tumor types. In September 2000, one of the defendants
received final approval from the US Food and Drug Administration for its Abbreviated
New Drug Application for paclitaxel and is marketing the product. Two additional
tentative approvals have been announced by the United States Food and Drug Administration.
One has been issued to a company in the same corporate family as the defendant
that received final approval. The other tentative approval was issued to an
unrelated defendant. It is not possible at this time to make
a reasonable assessment of the outcome of the appeal and the remaining claims
in these actions or to reasonably estimate the impact on TAXOL* sales or the
amount of damages were the Company not to prevail. VANLEV* The Company, its Chairman of the Board
and Chief Executive Officer, Charles A. Heimbold, Jr., and its Chief Scientific
Officer and President - Pharmaceutical Research Institute, Peter S. Ringrose,
Ph.D., are defendants in a number of purported class actions filed in the US
District Court for the District of New Jersey in April, May and June alleging
violations of federal securities laws and regulations. Plaintiffs claim that
the defendants disseminated materially false and misleading statements and failed
to disclose information concerning the safety and expected availability of its
product Vanlev during the period November 8, 1999 through April 19, 2000. Plaintiffs
seek compensatory damages and costs and expenses. It is not possible at this time to make
a reasonable assessment of the outcome of this matter or the amount of damages
were the Company not to prevail. While it is not possible to predict with certainty the
outcome of these cases, it is the opinion of management that they will not have
a material adverse effect on the Company's operating results or consolidated
financial position. _____________________________________________________________________________________________ 52 BRISTOL-MYERS SQUIBB COMPANY NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS (dollars in millions) Note 18 SELECTED
QUARTERLY FINANCIAL DATA (UNAUDITED) First Quarter
Second Quarter
Third Quarter
Fourth Quarter
2000:
Net Sales
$4,451
$4,418
$4,563
$4,784
$18,216
Gross Profit
3,310
3,288
3,363
3,496
13,457
Net earnings
from Continuing Operations *
1,129
1,005
893
1,069
4,096
Net earnings
from Discontinued Operations **
92
86
343
94
615
Net earnings
1,221
1,091
1,236
1,163
4,711
Earnings Per
Common Share
Basic
Earnings
from Continuing Operations *
.57
.51
.45
.55
2.08
Discontinued
Operations **
.05
.04
.18
.05
.32
Net Earnings
.62
.55
.63
.60
2.40
Diluted
Earnings
from Continuing Operations *
.56
.50
.45
.54
2.05
Discontinued
Operations **
.05
.04
.17
.05
.31
Net Earnings
.61
.54
.62
.59
2.36
1999:
Net Sales
$4,044
$4,054
$4,190
$4,590
$16,878
Gross Profit
2,983
2,948
3,035
3,370
12,336
Net earnings
from Continuing Operations
975
865
988
961
3,789
Net earnings
from Discontinued Operations
91
87
109
91
378
Net earnings
1,066
952
1,097
1,052
4,167
Earnings Per
Common Share
Basic
Earnings
from Continuing Operations
.49
.44
.50
.48
1.91
Discontinued
Operations
.05
.04
.05
.05
.19
Net Earnings
.54
.48
.55
.53
2.10
Diluted
Earnings
from Continuing Operations
.48
.43
.49
.47
1.87
Discontinued
Operations
.05
.04
.05
.05
.19
Net Earnings
.53
.47
.54
.52
2.06
* In 2000, the first
quarter results included a gain on the sale of a business of $120 million ($87
million after taxes) and a provision for restructuring of $102 million ($74
million after taxes). The second quarter results included a gain on the sale
of businesses of $40 million ($29 million after taxes) and a provision for restructuring
of $20 million ($15 million after taxes). The third quarter results included
a provision for restructuring of $386 million ($240 million after taxes). ** In 2000, the first
quarter results included a provision for restructuring of $18 million ($11 million
after taxes). The third quarter results included a gain on the sale of businesses
of $402 million ($240 million after taxes) and a provision for restructuring
of $16 million ($11 million after taxes). 53 REPORT OF INDEPENDENT
ACCOUNTANTS To the Board of Directors and Stockholders of Bristol-Myers Squibb
Company In our opinion, the consolidated
financial statements listed in the index appearing under Item 14(a)(1) on page
56 present fairly, in all material respects, the financial position of Bristol-Myers
Squibb Company and its subsidiaries at December 31, 2000, 1999 and 1998, and
the results of their operations and their cash flows for the years then ended
in conformity with accounting principles generally accepted in the United States
of America. In addition, in our opinion, the financial statement schedule listed
in the index appearing under Item 14(a)(2) on page 56 presents fairly, in all
material respects, the information set forth therein when read in conjunction
with the related consolidated financial statements. These financial statements
and the financial statement schedule are the responsibility of the Company's
management; our responsibility is to express an opinion on these financial statements
and the financial statement schedule based on our audits. We conducted our audits
of these statements in accordance with auditing standards generally accepted
in the United States of America, which require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by management,
and evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion. /s/ PricewaterhouseCoopers
LLP PRICEWATERHOUSECOOPERS
LLP New York, New York January 24, 2001 54 Item 9. CHANGES IN AND
DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE. None. PART III Item 10. DIRECTORS AND
EXECUTIVE OFFICERS OF THE REGISTRANT. (a) Reference
is made to the Proxy Statement for the Annual Meeting of Stockholders on
May 1, 2001 with respect to the Directors of the Registrant which is incorporated
herein by reference and made a part hereof in response to the information
required by Item 10. (b) The information
required by Item 10 with respect to the Executive Officers of the Registrant
has been included in Part IA of this Form 10-K Annual Report in reliance
on General Instruction G of Form 10-K and Instruction 3 to Item 401(b) of
Regulation SK Item 11. EXECUTIVE COMPENSATION. Reference is made to
the Proxy Statement for the Annual Meeting of Stockholders on May 1, 2001 with
respect to Executive Compensation which is incorporated herein by reference
and made a part hereof in response to the information required by Item 11. Item 12. SECURITY OWNERSHIP
OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT. Reference is made to
the Proxy Statement for the Annual Meeting of Stockholders on May 1, 2001 with
respect to the security ownership of certain beneficial owners and management
which is incorporated herein by reference and made a part hereof in response
to information required by Item 12. Item 13. CERTAIN RELATIONSHIPS
AND RELATED TRANSACTIONS. Reference is made to
the Proxy Statement for the Annual Meeting of Stockholders on May 1, 2001 with
respect to certain relationships and related transactions which is incorporated
herein by reference and made a part hereof in response to the information required
by Item 13. _____________________________________________________________________________________________ 55 PART IV Item 14. EXHIBITS, FINANCIAL
STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K. 1. Financial Statements Notes to Consolidated Financial Statements Report of Independent Accountants 2. Financial Statement Schedules Schedule Number Page Number
Valuation and qualifying accounts
II
S-1
All other schedules
not included with this additional financial data are omitted because they
are not applicable or the required information is included in the financial
statements or notes thereto. 3. Exhibit List The Exhibits listed below
are identified by numbers corresponding to the Exhibit Table of Item 601 of
Regulation SK The Exhibits designated by two asterisks (**) are management contracts
or compensatory plans or arrangements required to be filed pursuant to this
Item 14. Unless otherwise indicated, all Exhibits are part of Commission File
Number 1-1136. 3a. Restated Certificate
of Incorporation of Bristol-Myers Squibb Company (incorporated herein by
reference to Exhibit 4a to Registrant's Registration Statement on Form S-3,
Registration Statement No. 33-33682, dated March 7, 1990, as amended through
May 5, 1999 by Certificate of Amendment incorporated herein by reference
to Exhibit 3a to Form 10-K for the fiscal year ended December 31,1999). 3b. Bylaws of
Bristol-Myers Squibb Company, as amended through February 1, 2001, filed
herewith. 4a. Letter of
Agreement dated March 28, 1984 (incorporated herein by reference to Exhibit
4 to Form 10-K for the fiscal year ended December 31, 1983). 4b. Indenture,
dated as of June 1, 1993, between Bristol-Myers Squibb Company and The Chase
Manhattan Bank (National Association), as trustee (incorporated herein by
reference to Exhibit 4.1 to the Form 8-K dated May 27, 1993, and filed on
June 3, 1993). 56 4c. Form of 7.15%
Debenture Due 2023 of Bristol-Myers Squibb Company (incorporated herein
by reference to Exhibit 4.2 to the Form 8-K dated May 27, 1993, and filed
on June 3, 1993). 4d. Form of 6.80%
Debenture Due 2026 of Bristol-Myers Squibb Company (incorporated herein
by reference to Exhibit 4e to the Form 10-K for the fiscal year ended December
31, 1996). 4e. Form of 6.875%
Debenture Due 2097 of Bristol-Myers Squibb Company (incorporated herein
by reference to Exhibit 4f to the Form 10-Q for the quarterly period ended
September 30, 1997). 4f. Five Year
Competitive Advance and Revolving Credit Facility Agreement dated as of
March 17, 1998 among Bristol-Myers Squibb Company, the Borrowing Subsidiaries
(as defined in the Agreement), the Lenders listed in Schedule 2.1 to the
Agreement, The Chase Manhattan Bank as Administrative Agent and Citibank,
N.A., as Administrative Agent (incorporated herein by reference to Exhibit
4f to the Form 10-K for the fiscal year ended December 31, 1997). 4g. 364-Day Competitive
Advance and Revolving Credit Facility agreement dated as of March 17, 1998
among Bristol-Myers Squibb Company, the Borrowing Subsidiaries (as defined
in the Agreement), the Lenders listed in Schedule 2.1 to the Agreement,
The Chase Manhattan Bank as Administrative Agent and Citibank, N.A., as
Administrative Agent (incorporated herein by reference to Exhibit 4g to
the Form 10-K for the fiscal year ended December 31, 1997). **10a. Bristol-Myers
Squibb Company 1997 Stock Incentive Plan, effective as of May 6, 1997 and
as amended effective November 3, 1998 (incorporated herein by reference
to Exhibit 10a to the Form 10-K for the fiscal year ended December 31, 1998).
**10b. Bristol-Myers
Squibb Company Executive Performance Incentive Plan (incorporated herein
by reference to Exhibit 10b to the Form 10-K for the fiscal year ended December
31, 1996). **10c. Bristol-Myers
Squibb Company 1983 Stock Option Plan, as amended and restated as of January
1, 1997, as amended November 3, 1998 (incorporated herein by reference to
Exhibit 10c to the Form 10-K for the fiscal year ended December 31, 1998).
**10d. Squibb
Corporation 1982 Option, Restricted Stock and Performance Unit Plan, as
amended (incorporated herein by reference to Exhibit 10b to the Form 10-K
for the fiscal year ended December 31, 1993). **10e. Squibb
Corporation 1986 Option, Restricted Stock and Performance Unit Plan, as
amended (as adopted, incorporated herein by reference to Exhibit 10k to
the Squibb Corporation Form 10-K for the fiscal year ended December 31,
1988, File No. 1-5514; as amended effective July 1, 1993, and incorporated
herein by reference to Exhibit 10c to the Form 10-K for the fiscal year
ended December 31, 1993). **10f. Bristol-Myers
Squibb Company Performance Incentive Plan, as amended (as adopted, incorporated
herein by reference to Exhibit 2 to the Form 10-K for the fiscal year ended
December 31, 1978; as amended as of January 8, 1990, incorporated herein
by reference to Exhibit 19b to the Form 10-K for the fiscal year ended December
31, 1990; as amended on April 2, 1991, incorporated herein by reference
to Exhibit 19b to the Form 10-K for the fiscal year ended December 31, 1991;
as amended effective January 1, 1994, incorporated herein by reference to
Exhibit 10d to the Form 10-K for the fiscal year ended December 31, 1993;
and as amended effective January 1, 1994, incorporated herein by reference
to Exhibit 10d to the Form 10-K for the fiscal year ended December 31, 1994). 57 **10g. Benefit
Equalization Plan of Bristol-Myers Squibb Company and its Subsidiary or
Affiliated Corporations Participating in the Bristol-Myers Squibb Company
Retirement Income Plan or the Bristol-Myers Squibb Puerto Rico, Inc. Retirement
Income Plan, as amended (as amended and restated as of January 1, 1993,
as amended effective October 1, 1993, incorporated herein by reference to
Exhibit 10e to the Form 10-K for the fiscal year ended December 31, 1993;
and as amended effective February 1, 1995, incorporated herein by reference
to Exhibit 10e to the Form 10-K for the fiscal year ended December 31, 1996). **10h. Benefit
Equalization Plan of Bristol-Myers Squibb Company and its Subsidiary or
Affiliated Corporations Participating in the Bristol-Myers Squibb Company
Savings and Investment Program, as amended (as amended and restated as of
May 1, 1990, incorporated herein by reference to Exhibit 19d to the Form
10-K for the fiscal year ended December 31, 1990; as amended as of January
1, 1991, incorporated herein by reference to Exhibit 19g to the Form 10-K
for the fiscal year ended December 31, 1990; as amended as of January 1,
1991, incorporated herein by reference to Exhibit 19e to the Form 10-K for
the fiscal year ended December 31, 1991, as amended as of October 1, 1994,
incorporated herein by reference to Exhibit 10f to the Form 10-K for the
fiscal year ended December 31, 1994). **10i. Squibb
Corporation Supplementary Pension Plan, as amended (as previously amended
and restated, incorporated herein by reference to Exhibit 19g to the Form
10-K for the fiscal year ended December 31, 1991; as amended as of September
14, 1993, and incorporated herein by reference to Exhibit 10g to the Form
10-K for the fiscal year ended December 31, 1993). **10j. Bristol-Myers
Squibb Company Restricted Stock Award Plan, as amended (as adopted on November
7, 1989, incorporated herein by reference to Exhibit 10t to the Form 10-K
for the fiscal year ended December 31, 1989; as amended on December 4, 1990,
incorporated herein by reference to Exhibit 19a to the Form 10-K for the
fiscal year ended December 31, 1990; as amended effective July 1, 1993,
incorporated herein by reference to Exhibit 10h to the Form 10-K for the
fiscal year ended December 31, 1993; as amended effective December 6, 1994,
incorporated herein by reference to Exhibit 10h to the Form 10-K for the
fiscal year ended December 31, 1994). **10k. Bristol-Myers
Squibb Company Retirement Income Plan for Non-Employee Directors, as amended
to March 5, 1996 (incorporated herein by reference to Exhibit 10k to the
Form 10-K for the fiscal year ended December 31, 1996). **10l. Bristol-Myers
Squibb Company 1987 Deferred Compensation Plan for Non-Employee Directors,
as amended to January 13, 1998 (incorporated herein by reference to Exhibit
10l to the Form 10-K for the fiscal year ended December 31, 1997). **10m.Bristol-Myers
Squibb Company Non-Employee Directors' Stock Option Plan, as amended (as
approved by the Stockholders on May 1, 1990, incorporated herein by
reference to Exhibit 28 to Registration Statement No. 33-38587 on Form S-8;
as amended May 7, 1991, incorporated herein by reference to Exhibit
19c to the Form 10-K for the fiscal year ended December 31, 1991), as amended
January 12, 1999 (incorporated herein by reference to Exhibit 10m to the
Form 10-K for the fiscal year ended December 31, 1998). 58 **10n. Squibb
Corporation Deferral Plan for Fees of Outside Directors, as amended (as
adopted, incorporated herein by reference to Exhibit 10e to the Squibb Corporation
Form 10-K for the fiscal year ended December 31, 1987, File No. 1-5514;
as amended effective December 31, 1991, incorporated herein by reference
to Exhibit 10m to the Form 10-K for the fiscal year ended December 31, 1992). **10o. Amendment
to all of the Company's plans, agreements, legal documents and other writings,
pursuant to action of the Board of Directors on October 3, 1989, to reflect
the change of the Company's name to Bristol-Myers Squibb Company (incorporated
herein by reference to Exhibit 10v to the Form 10-K for the fiscal year
ended December 31, 1989). **10p. Employment
agreement of March 12, 1999 for Charles A. Heimbold, Jr. (incorporated herein
by reference to Exhibit 10p to the Form 10-K for the fiscal year ended December
31, 1998). **10q. Form of Agreement,
effective June 1, 1999, entered into between the Registrant and each of
the following officers on the following dates: Peter R. Dolan, July 29,
1999; Donald J. Hayden, Jr., July 30, 1999; Richard J. Lane, August 6, 1999;
John L. McGoldrick, August 10, 1999; Michael F. Mee, July 28, 1999; Peter
S. Ringrose, Ph.D., August 5, 1999; Stephen I. Sadove, July 29, 1999; Frederick
S. Schiff, July 29, 1999; John L. Skule, August 5, 1999; and Charles G.
Tharp, Ph.D., July 28, 1999; (incorporated herein by reference to Exhibit
10q to the Form 10-Q for the quarterly period ended September 30, 1999). **10r. Form of Agreement,
effective February 1, 2001, entered into between the Registrant and Kenneth
E. Weg, filed herewith. 21. Subsidiaries
of the Registrant (filed herewith). 23. Consent of
PricewaterhouseCoopers LLP (filed herewith). 99. Additional
Exhibit (filed herewith). (b) Reports on Form
8-K A Form 8-K, as of
January 24, 2001, was filed by the Company, including financial statements
restated to present Clairol (which includes its Matrix Essentials, Inc.
affiliate) and Zimmer as discontinued operations. _____________________________________________________________________________________________ 59 _____________________________________________________________________________________________ 59 SIGNATURES Pursuant to the requirements
of Section 13 or 15 (d) of the Securities Exchange Act of 1934, the Registrant
has duly caused this Report to be signed on its behalf by the undersigned, thereunto
duly authorized. BRISTOL-MYERS SQUIBB COMPANY (Registrant)
By /s/ Charles A. Heimbold,
Jr.
Charles A. Heimbold, Jr. Chairman of the Board and Chief Executive Officer
March 30, 2001
Date
Pursuant to the requirements
of the Securities Exchange Act of 1934, this Report has been signed below by
the following persons on behalf of the Registrant and in the capacities and
on the dates indicated. Signature
Title
Date
/s/ Charles A. Heimbold, Jr.
Chairman of the Board, Chief Executive
Officer March 30, 2001
(Charles A. Heimbold, Jr.)
/s/ Michael F. Mee
Chief Financial Officer and Executive Vice President
Corporate Staff (Principal Financial Officer) March 30, 2001
(Michael F. Mee)
/s/ Frederick S. Schiff
Controller and Senior Vice President,
Financial Operations, Corporate Staff (Principal Accounting Officer)
March 30, 2001
(Frederick S. Schiff)
_____________________________________________________________________________________________ 60 Signature
Title
Date
/s/ Robert E. Allen
Director
March 30, 2001
(Robert E. Allen)
/s/ Lewis B. Campbell
Director
March 30, 2001
(Lewis B. Campbell)
/s/ Vance D. Coffman
Director
March 30, 2001
(Vance D. Coffman)
President, Chief Executive Officer-Designate and
Director
March 30, 2001
(Peter R. Dolan)
/s/ Ellen V. Futter
Director
March 30, 2001
(Ellen V. Futter)
/s/ Louis V. Gerstner, Jr.
Director
March 30, 2001
(Louis V. Gerstner, Jr.)
/s/ Laurie H. Glimcher, MD
Director
March 30, 2001
(Laurie H. Glimcher, MD)
/s/ Leif Johansson
Director
March 30, 2001
(Leif Johansson)
/s/ James D. Robinson III
Director
March 30, 2001
(James D. Robinson III)
/s/ Louis W. Sullivan, MD
Director
March 30, 2001
(Louis W. Sullivan, MD)
_____________________________________________________________________________________________ 61 EXHIBIT INDEX The Exhibits listed below
are identified by numbers corresponding to the Exhibit Table of Item 601 of
Regulation SK The Exhibits designed by two asterisks (**) are management contracts
or compensatory plans or arrangements required to be filed pursuant to this
Item 14. An asterisk (*) in the Page column indicates that the Exhibit has been
previously filed with the Commission and is incorporated herein by reference.
Unless otherwise indicated, all Exhibits are part of Commission File Number
1-1136. Exhibit No.
Description
Page No.
3a.
Restated Certificate of Incorporation
of Bristol-Myers Squibb Company (incorporated herein by reference to Exhibit
4a to Registration Statement No. 33-33682 on Form S-3, dated March 7,
1990, as amended through May 5, 1999 by Certificate of Amendment incorporated
herein by reference to Exhibit 3a to Form 10-K for the fiscal year ended
December 31,1999).
*
3b.
Bylaws of Bristol-Myers Squibb
Company, as amended through February 1, 2001, filed herewith. E-1-1
4a.
Letter of Agreement dated March
28, 1984 (incorporated herein by reference to Exhibit 4 to Form 10-K
for the fiscal year ended December 31,1983).
*
4b.
Indenture, dated as of June 1,
1993, between Bristol-Myers Squibb Company and The Chase Manhattan
Bank (National Association), as trustee (incorporated herein by reference
to Exhibit 4.1 to the Form 8-K dated May 27, 1993, and filed on June 3,
1993).
*
4c.
Form of 7.15% Debenture Due 2023
of Bristol-Myers Squibb Company (incorporated herein by reference to Exhibit
4.2 to the Form 8-K dated May 27, 1993, and filed on June 3, 1993).
*
4d.
Form of 6.80% Debenture Due 2026
of Bristol-Myers Squibb Company (incorporated herein by reference to Exhibit
4e to the Form 10-K for the fiscal year ended December 31, 1996).
*
4e.
Form of 6.875% Debenture Due 2097
of Bristol-Myers Squibb Company (incorporated herein by reference to Exhibit
4f to the Form 10-Q for the quarterly period ended September 30, 1997).
*
_____________________________________________________________________________________________ 62 Exhibit No. Description Page No.
4f.
Five Year Competitive Advance and
Revolving Credit Facility Agreement dated as of March 17, 1998 among Bristol-Myers
Squibb Company, the Borrowing Subsidiaries (as defined in the Agreement),
the Lenders listed in Schedule 2.1 to the Agreement, The Chase Manhattan
Bank as Administrative Agent and Citibank, N.A., as Administrative Agent.
*
4g.
364-Day Competitive Advance and
Revolving Credit Facility Agreement dated as of March 17, 1998 among Bristol-Myers
Squibb Company, the Borrowing Subsidiaries (as defined in the Agreement),
the Lenders listed in Schedule 2.1 to the Agreement, The Chase Manhattan
Bank as Administrative Agent and Citibank, N.A., as Administrative Agent.
*
** 10a.
Bristol-Myers Squibb Company 1997
Stock Incentive Plan, effective as of May 6, 1997 and as amended effective
November 3, 1998 (incorporated herein by reference to Exhibit 10a to the
Form 10-K for the fiscal year ended December 31, 1998).
*
** 10b
Bristol-Myers Squibb Company Executive
Performance Incentive Plan (incorporated herein by reference to Exhibit
10b to the Form 10-K for the fiscal year ended December 31, 1996).
*
** 10c.
Bristol-Myers Squibb Company 1983
Stock Option Plan, as amended and restated as of January 1, 1997, as amended
November 3, 1998 (incorporated herein by reference to Exhibit 10c to the
Form 10-K for the fiscal year ended December 31, 1998).
*
** 10d.
Squibb Corporation 1982 Option,
Restricted Stock and Performance Unit Plan, as amended (incorporated
by reference to Exhibit 10b to the Form 10-K for the fiscal year ended
December 31, 1993).
*
** 10e.
Squibb Corporation 1986 Option,
Restricted Stock and Performance Unit Plan, as amended (as adopted, incorporated
herein by reference to Exhibit 10k to the Squibb Corporation Form 10-K
for the fiscal year ended December 31, 1988, File No. 1-5514, as amended
July 1, 1993, incorporated herein by reference to Exhibit 10c to the Form
10-K for the fiscal year ended December 31, 1993).
*
_____________________________________________________________________________________________ 63 Exhibit No. Description Page No.
** 10f.
Bristol-Myers Squibb Company Performance
Incentive Plan, as amended (as adopted, incorporated herein by reference
to Exhibit 2 to the Form 10-K for the fiscal year ended December 31, 1978;
as amended as of January 8, 1990, incorporated herein by reference to
Exhibit 19b to the Form 10-K for the fiscal year ended December 31, 1990;
as amended on April 2, 1991, incorporated herein by reference to Exhibit
19b to the Form 10-K for the fiscal year ended December 31, 1991; as amended
effective on January 1, 1994, and incorporated herein by reference to
Exhibit 10d to the Form 10-K for the fiscal year ended December 31, 1994).
*
** 10g.
Benefit Equalization Plan of Bristol-Myers
Squibb Company and its Subsidiary or Affiliated corporations Participating
in the Bristol-Myers Squibb Company Retirement Income Plan or the Bristol-Myers
Squibb Puerto Rico, Inc. Retirement Income Plan, as amended (as amended
and restated as of January 1, 1993, as amended effective October 1, 1993,
incorporated herein by reference to Exhibit 10e to the Form 10-K for the
fiscal year ended December 31, 1993 and amended effective February 1,
1995, incorporated by reference to Exhibit 10e to the Form 10-K for the
fiscal year ended December 31, 1995).
*
** 10h
Benefit Equalization Plan of Bristol-Myers
Squibb Company an its Subsidiary or Affiliated Corporation Participating
in the Bristol-Myers Squibb Company Savings and Investment Program, as
amended (as amended and restated as of May 1, 1990, incorporated herein
by reference to Exhibit 19d to the Form 10-K for the fiscal year ended
December 31, 1990; as amended as of January 1, 1991, incorporated herein
by reference to Exhibit 19g to the Form 10-K for the fiscal year ended
December 31, 1990; as amended as of January 1, 1991, incorporated herein
by reference to Exhibit 19e to the Form 10-K for the fiscal year ended
December 31, 1991; as amended as of October 1, 1994, incorporated herein
by reference to Exhibit 10f of the Form 10-K for the fiscal year ended
December 31, 1994).
*
** 10i
Squibb Corporation Supplementary
Pension Plan, as amended (as previously amended and restated, incorporated
herein by reference to Exhibit 19g to the Form 10-K for the fiscal year
ended December 31, 1991; as amended on September 14, 1993, incorporated
by reference to Exhibit 10g to the Form 10-K for the fiscal year ended
December 31, 1993).
*
_____________________________________________________________________________________________ 64 Exhibit No.
Description Page No.
** 10j.
Bristol-Myers Squibb Company Restricted
Stock Award Plan, as amended (as adopted on November 7, 1989, incorporated
herein by reference to Exhibit 10t to the Form 10-K for the fiscal year
ended December 31, 1989; as amended on December 4, 1990, incorporated
herein by reference to Exhibit 19a to the Form 10-K for the fiscal year
ended December 31, 1990; as amended July 1, 1993, incorporated by reference
to Exhibit 10h to the Form 10-K for the fiscal year ended December 31,
1993; as amended effective December 6, 1994, incorporated by reference
to Exhibit 10h to the Form 10-K for the fiscal year ended January 31,
1994).
*
** 10k.
Bristol-Myers Squibb Company Retirement
Income Plan for Non-Employee Directors, as amended to March 5,1996 (incorporated
herein by reference to Exhibit 10k to the Form 10-K for the fiscal year
ended December 31, 1996).
*
** 10l.
Bristol-Myers Squibb Company 1987
Deferred Compensation Plan for Non-Employee Directors, as amended to January
13, 1998 (incorporated herein by reference to Exhibit 10l to the Form
10-K for the fiscal year ended December 31, 1997).
*
** 10m.
Bristol-Myers Squibb Company Non-Employee
Directors' Stock Option Plan, as amended (as approved by the Stockholders
on May 1, 1990, incorporated herein by reference to Exhibit 28 to Registration
Statement No. 33-38587 on Form S-8; as amended May 7, 1991, incorporated
herein by reference to Exhibit 19c to the Form 10-K for the fiscal year
ended December 31, 1991; as amended January 12, 1999, incorporated herein
by reference to Exhibit 10m to the Form 10-K for the fiscal year ended
December 31, 1998; as amended May 2, 2000, incorporated herein by reference
to Exhibit 10m to the Form 10-Q for the quarterly period ended March 31,
2000).
*
** 10n.
Squibb Corporation Deferral Plan
for Fees of Outside Directors, as amended (as adopted, incorporated herein
by reference to Exhibit 10e to the Squibb Corporation Form 10-K for the
fiscal year ended December 31, 1987, File No. 1-5514; as amended effective
December 31, 1991, incorporated herein by reference to Exhibit 10m to
the Form 10-K for the fiscal year ended December 31, 1992).
*
_____________________________________________________________________________________________ 65 Exhibit No. Description Page No.
** 10o.
Amendment to all of the Company's
plans, agreements, legal documents and other writings, pursuant to action
of the Board of Directors on October 3, 1989, to reflect the change of
the Company's name to Bristol-Myers Squibb Company (incorporated herein
by reference to Exhibit 10v to the Form 10-K for the fiscal year ended
December 31, 1989).
*
** 10p.
Employment agreement of March 12,
1999 for Charles A. Heimbold, Jr. (incorporated herein by reference to
Exhibit 10p to the Form 10-K for the fiscal year ended December 31, 1998).
*
** 10q.
Form of Agreement, effective June
1, 1999, entered into between the Registrant and each of the following
officers on the following dates: Peter R. Dolan, July 29, 1999; Donald
J. Hayden, Jr., July 30, 1999; Richard J. Lane, August 6, 1999; John L.
McGoldrick, August 10, 1999; Michael F. Mee, July 28, 1999; Peter S. Ringrose,
Ph.D., August 5, 1999; Stephen I. Sadove, July 29, 1999; Frederick S.
Schiff, July 29, 1999; John L. Skule, August 5, 1999; and Charles G. Tharp,
Ph.D., July 28, 1999. (incorporated herein by reference to Exhibit 10q
to the Form 10-Q for the quarterly period ended September 30, 1999).
*
** 10r.
Form of Agreement, effective February
1, 2001, entered into between the Registrant and Kenneth E. Weg, filed
herewith.
E-2-1
21.
Subsidiaries of the Registrant
E-3-1
23.
Consent of PricewaterhouseCoopers
LLP.
E-4-1
99.
Additional Exhibit
E-5-1
_____________________________________________________________________________________________ 66 SCHEDULE II --------------------- BRISTOL-MYERS SQUIBB COMPANY VALUATION AND QUALIFYING
ACCOUNTS (dollars in millions) Additions charged to costs and Allowances for Discounts and Doubtful accounts: For the year ended December 31, 2000 $168
$37
$34
$171
For the year ended December 31, 1999 $147
$65
$44
$168
For the year ended December 31, 1998 $109
$57
$19
$147
_____________________________________________________________________________________________ S-1 _______________________________________________________________ BRISTOL-MYERS SQUIBB COMPANY _________________ BYLAWS As Adopted on November 1, 1965 And as Amended to February 1, 2001 ________________ _______________________________________________________________ E-1-1
CAPOZIDE*
Charles A. Heimbold, Jr.
Chairman of the Board, Chief Executive Officer and Director
Harrison M. Bains, Jr.
Treasurer and Vice President, Corporate Staff
Peter R. Dolan
President, Chief Executive Officer-Designate and Director
Donald J. Hayden, Jr.
Executive Vice President, E-Business and Strategy, Corporate
Staff
George P. Kooluris
Senior Vice President, Corporate Development, Corporate Staff
Richard J. Lane
President, Worldwide Medicines Group
Sandra Leung
Secretary and Head of Office of Corporate Conduct, Corporate
Staff
John L. McGoldrick
President, Medical Devices Group and Executive Vice President
and
General Counsel, Corporate Staff
Michael F. Mee
Executive Vice President and Chief Financial Officer, Corporate
Staff
Peter S. Ringrose, Ph. D.
Chief Scientific Officer and President, Bristol-Myers Squibb
Company Pharmaceutical Research Institute
Stephen I. Sadove
President, Worldwide Beauty Care and Senior Vice President,
Corporate Staff
Frederick S. Schiff
Controller and Senior Vice President Financial Operations,
Corporate Staff
John L. Skule
Senior Vice President, Corporate and Environmental Affairs,
Corporate Staff
Charles G. Tharp, Ph.D.
Senior Vice President, Human Resources, Corporate Staff
Units(c)
R. E. Allen
L. B. Campbell
V. D. Coffman
P. R. Dolan
E. V. Futter
L. V. Gerstner, Jr.
L. H. Glimcher, M.D.
C. A. Heimbold, Jr.
L. Johansson
R. J. Lane
J. L. McGoldrick
M. F. Mee
J. D. Robinson III
L. W. Sullivan, MD
K. E. Weg
All Directors and Officers as a Group
FMR Corp.
16
5,478
5,158
3,638
3,738
3,423
Option Contracts Purchased Right
to Sell:
$74
5,478
5,158
1,436
1,502
1,587
220
219
219
9,720
7,291
5,636
(196)
(266)
(93)
_____________________________________________________________________________________________
32
43
44
Net Gain on Disposal
Net Earnings
_____________________________________________________________________________________________
55
57
50
_____________________________________________________________________________________________
49
$(369)
$(369)
$(379)
Point Increase
Point Decrease
_____________________________________________________________________________________________
_____________________________________________________________________________________________
Year
_____________________________________________________________________________________________
_____________________________________________________________________________________________
(a)
_____________________________________________________________________________________________
_____________________________________________________________________________________________
_____________________________________________________________________________________________
And Director (Principal Executive Officer)
/s/ Peter R. Dolan
Description
Balance at beginning Of period
expenses
Deductions -
bad debts written off
Balance at End of period
I N D E X
No. |
SUBJECT |
Page |
1. |
Principal Office |
E-1-5 |
2. |
Other Offices |
E-1-5 |
3. |
Seal |
E-1-5 |
4. |
Meetings of Shareholders -- Date and Time |
E-1-5 - E-1-6 |
5. |
Meetings of Shareholders -- Place |
E-1-7 |
6. |
Meetings of Shareholders -- No Action By Written Consent, Call |
E-1-7 |
7. |
Meetings of Shareholders -- Notice |
E-1-7 |
8. |
Meetings of Shareholders -- Quorum |
E-1-7 |
9. |
Meetings of Shareholders -- Presiding Officer and Secretary |
E-1-8 |
10. |
Meetings of Shareholders -- Voting |
E-1-8 |
11. |
Meetings of Shareholders -- Voting List |
E-1-8 - E-1-9 |
12. |
Annual Meeting of Shareholders -- Statement of Business and Condition of Company |
E-1-9 |
13. |
Meetings of Shareholders -- Inspectors of Election |
E-1-9 |
14. |
Board of Directors -- Powers |
E-1-9 |
15. |
Board of Directors -- Number, Election, Term, Resignation or Retirement, Removal and Filling Vacancies |
E-1-9 - E-1-11 |
16. |
Board of Directors -- Location of Meetings and Books |
E-1-11 |
17. |
Board of Directors -- Scheduling of Regular Meetings |
E-1-11 |
18. |
Board of Directors -- Scheduling of Special Meetings |
E-1-11 |
E-1-2
No. |
SUBJECT |
Page |
19. |
Board of Directors -- Waiver of Meeting Notice and Action by Consent |
E-1-11 |
20. |
Board of Directors -- Quorum for Meeting |
E-1-12 |
21. |
Board of Directors -- Meeting Procedure |
E-1-12 |
22. |
Board of Directors -- Fees |
E-1-12 |
23. |
Board of Directors -- Indemnification |
E-1-12 - E-1-13 |
24. |
Committees of the Board -- Executive, Audit, Others |
E-1-14 - E-1-15 |
25. |
Committees of the Board -- Minutes and Reports |
E-1-15 |
26. |
Officers |
E-1-15 |
27. |
Officers -- Election and Term |
E-1-15 - E-1-16 |
28. |
Appointment of Other Officers, Committees or Agents |
E-1-16 |
29. |
Officers -- Removal |
E-1-16 |
30. |
Officers -- Resignation |
E-1-16 |
31. |
Officers -- Unable to Perform Duties |
E-1-16 |
32. |
Officers -- Vacancy |
E-1-17 |
33. |
The Chairman of the Board -- Powers and Duties |
E-1-17 |
34. |
Vice Chairman of the Board -- Powers and Duties |
E-1-17 |
35. |
Duties of President |
E-1-17 |
36. |
Vice Presidents -- Powers and Duties |
E-1-17 |
37. |
The Treasurer -- Powers and Duties |
E-1-17 - E-1-18 |
38. |
The Secretary -- Powers and Duties |
E-1-18 |
E-1-3
No. |
SUBJECT |
Page |
39. |
The Controller -- Powers and Duties |
E-1-18 |
40. |
Assistant Treasurers and Assistant Secretaries -- Powers and Duties |
E-1-18 |
41. |
Officers -- Compensation |
E-1-18 |
42. |
Contracts, Other Instruments, Authority to Enter Into or Execute |
E-1-19 |
43. |
Loans and Negotiable Paper |
E-1-19 |
44. |
Checks, Drafts, etc. |
E-1-19 |
45. |
Banks -- Deposit of Funds |
E-1-19 |
46. |
Stock Certificates -- Form, Issuance |
E-1-20 |
47. |
Stock -- Transfer |
E-1-20 |
48. |
Stock Certificates -- Loss, Replacement |
E-1-20 |
49. |
Record Dates |
E-1-21 |
50. |
Registered Shareholders |
E-1-21 |
51. |
Fiscal Year |
E-1-21 |
52. |
Notices |
E-1-22 |
53. |
Notices -- Waiver |
E-1-22 |
54. |
Amendments of Bylaws |
E-1-22 |
E-1-4
BYLAWS
of
BRISTOL-MYERS SQUIBB COMPANY
OFFICES
1. The registered office of the Company shall be in the City of Wilmington, County of New Castle, State of Delaware, and the name of the resident agent in charge thereof is The Corporation Trust Company.
2. The Company may also have offices at such place or places as the Board of Directors may from time to time appoint or the business of the Company may require.
SEAL
3. The corporate seal shall have inscribed thereon the name of the Company, the year of its organization and the words "Corporate Seal, Delaware." Said seal may be used in causing it or a facsimile thereof to be impressed or affixed or reproduced or otherwise.
MEETINGS OF SHAREHOLDERS
4. The annual meeting of the shareholders for the election of directors and for the transaction of any other proper business shall be held at such time as the Board of Directors may determine. For nominations or other business to be properly brought before any annual meeting by a shareholder, a shareholder must give timely notice in writing thereof to the Secretary of the Company and, in the case of business other than nominations, such other business must be a proper matter for
E-1-5
shareholder action. To be considered timely, a shareholder's notice must be received by the Secretary at the principal executive offices of the Company not less than 120 calendar days before the date of the Company's proxy statement released to shareholders in connection with the prior year's annual meeting. If the annual meeting for the election of directors is not held on the date designated therefor, the directors shall cause the meeting to be held as soon thereafter as convenient. A shareholder's notice shall set forth: (a) as to each person whom the shareholder proposes to nominate for election or re-election as a director, all information relating to such person that is required to be disclosed in solicitations of proxies for election of directors pursuant to Regulation 14A under the Securities Exchange Act of 1934, including such person's written consent to being named in the proxy statement as a nominee and to serving as a director if elected; (b) as to any other business that the shareholder proposes to bring before the meeting, a brief description of the business desired to be brought before the meeting, the reasons for conducting such business at the meeting and any material interest in such business of such shareholder and the beneficial owner, if any, on whose behalf the proposal is made and (c) as to the shareholder giving the notice and the beneficial owner, if any, on whose behalf the nomination or proposal is made (i) the name and address of such shareholder, as they appear on the Company's books, and of such beneficial owner, (ii) the number of shares of stock held of record and beneficially by such shareholder and such beneficial owner, (iii) the name in which all such shares of stock are registered on the stock transfer books of the Company, (iv) a representation that the shareholder intends to appear at the meeting in person or by proxy to submit the business specified in such notice, (v) a brief description of the business desired to be submitted to the annual meeting, including the complete text of any resolutions intended to be presented at the annual meeting, and the reasons for conducting such business at the annual meeting, (vi) any personal or other material interest of the shareholder in the business to be submitted, and (vii) all other information relating to the proposed business which may be required to be disclosed under applicable law. In addition, a shareholder seeking to submit such business at the meeting shall promptly provide any other information reasonably requested by the Company. The chairman of the meeting shall determine all matters relating to the efficient conduct of the meeting, including, but not limited to, the items of business, as well as the maintenance of order and decorum. The chairman shall, if the facts warrant, determine and declare that any putative business was not properly brought before the meeting in accordance with the procedures prescribed by this bylaw, in which case such business shall not be transacted. No twithstanding the foregoing provisions of this bylaw, a shareholder who seeks to have any proposal included in the Company's proxy materials shall comply with the requirements of Rule 14a-8 under Regulation 14A of the Securities Exchange Act of 1934.
E-1-6
5. Meetings of the shareholders may be held at such places either within or without the State of Delaware as the Board of Directors may determine.
6. Any action required or permitted to be taken by the stockholders of the Company must be effected at a duly called annual or special meeting of such stockholders and may not be effected by any consent in writing by such stockholders. Except as otherwise required by law and subject to the rights under Article FOURTH of the Certificate of Incorporation of the Company of the holders of any class or series of stock having a preference over the Common Stock as to dividends or upon liquidation, special meetings of stockholders of the Company may be called only by the Chairman of the Board or by the Board of Directors pursuant to a resolution approved by a majority of the entire Board of Directors.
7. Except as hereinafter provided or as may be otherwise required by law, notice of the place, date and hour of holding each annual and special meeting of the shareholders shall be in writing and shall be delivered personally or mailed in a postage prepaid envelope, not less than ten days before such meeting, to each person who appears on the books of the Company as a shareholder entitled to vote at such meeting, and to any shareholders who, by reason of any action proposed at such meeting, would be entitled to have their shares appraised if such action were taken. The notice of every special meeting, besides stating the time and place of such meeting, shall state briefly the purpose or purposes thereof; and no business other than that specified in such notice or germane thereto shall be transacted at the meeting, except with the unanimous consent in writing of the holders of record of all of the shares of the Company entitled to vote at such meeting. Notice of any meeting of shareholders shall not be required to be given to any shareholder entitled to participate in any action proposed to be taken at such meeting who shall attend such meeting in person or by proxy or who before or after any such meeting shall waive notice thereof in writing or by telegram, cable or wireless. Notice of any adjourned meeting need not be given.
8. At all meetings of shareholders of the Company, except as otherwise provided by law, the holders of a majority in number of the outstanding shares of the Company, present in person or by proxy and entitled to vote thereat, shall constitute a quorum for the transaction of business. In the absence of a quorum the holders of a majority in number of the shares of stock so present or represented and entitled to vote may adjourn the meeting from time to time until a quorum is present. At any such adjourned meeting at which a quorum is present any business may be transacted which might have been transacted at the meeting as originally called.
E-1-7
9. The Chairman of the Board shall preside as chairman at every meeting of shareholders. The Chairman of the Board may designate another officer of the Company or any shareholder to preside as chairman of a meeting of shareholders in place of the Chairman of the Board and in the absence of the Chairman of the Board and an officer or shareholder designated by the Chairman of the Board to preside as chairman of the meeting, the Board of Directors may designate an officer or shareholder to preside as chairman of the meeting. In the event the Chairman of the Board and the Board of Directors fail to so designate a chairman of the meeting the shareholders may designate an officer or shareholder as chairman. The Secretary shall act as secretary of the meeting, or, in the absence of the Secretary, the presiding officer shall appoint a secretary of the meeting.
10. At each meeting of the shareholders every shareholder of record entitled to vote thereat shall be entitled to one vote for each share of the Company standing in that shareholder's name on the books of the Company provided that no share of stock shall be voted at any election of directors which shall have been transferred on the books of the Company later than the record date announced by the Board of Directors or fixed by operation of these bylaws The vote on shares may be given by the shareholder entitled thereto in person or by proxy duly appointed by an instrument in writing subscribed by such shareholder or that shareholder's duly authorized attorney (or in any other manner prescribed by the General Corporation Law of the State of Delaware), and delivered to the secretary of the meeting; provided, however, that no proxy shall be valid after the expiration of three years from the date of its execution unless the shareholder executing it shall have specified therein the length of t ime it is to continue in force, which shall be for some limited period. At all meetings of shareholders, a quorum being present, all matters, except as otherwise provided by law or by the Certificate of Incorporation of the Company or these bylaws, shall be decided by the holders of a majority in number of the shares of stock of the Company present in person or by proxy and entitled to vote. A share vote may be by ballot and each ballot shall state the name of the shareholder voting and the number of shares owned by that shareholder and shall be signed by such shareholder or by that shareholder's proxy. Except as otherwise required by law or by these bylaws all voting may be viva voce.
11. The Secretary or other officer in charge of the stock ledger of the Company shall prepare and make at least ten days before every meeting of shareholders a complete list of the shareholders entitled to vote at the meeting arranged in alphabetical order and showing the address of each shareholder and the number of shares registered in the name of each shareholder. Such list shall be open to the examination of any shareholder for any purpose germane to the meeting during ordinary business hours for a period of at least ten days prior to the meeting either
E-1-8
at a place within the city where the meeting is to be held, which place shall be specified in the notice of the meeting, or if not so specified at the place where the meeting is to be held. The list shall also be produced and kept at the time and place of the meeting during the whole time thereof and may be inspected by any shareholder who is present. The stock ledger shall be the only evidence as to who are the shareholders entitled to examine the stock ledger, the list required by this bylaw, or the books of the Company or to vote in person or by proxy at any meeting of shareholders.
12. The Board of Directors shall present at each annual meeting, and when called for by vote of the shareholders at any special meeting of the shareholders, a full and clear statement of the business and condition of the Company.
13. At all elections of directors and when otherwise required by law, the chairman of the meeting shall appoint two inspectors of election. The inspectors shall be responsible for receiving, tabulating and reporting the result of the votes taken. No director or candidate for the office of director shall be appointed such inspector. The chairman of the meeting shall open and close the polls.
DIRECTORS
14. The property, business and affairs of the Company shall be managed by or under the direction of the Board of Directors, which may exercise all such powers of the Company and do all such lawful acts and things as are not by statute or by the Certificate of Incorporation or by these bylaws directed or required to be exercised or done by the shareholders.
15.(a) The Board of Directors shall consist of eleven directors. Directors need not be shareholders. The number of directors may be determined by a majority vote of the entire Board of Directors.
(b) Except as otherwise provided by the Certificate of Incorporation, by these bylaws or by law, at each meeting of the shareholders for the election of directors at which a quorum shall be present, the persons receiving a plurality of the votes cast shall be directors. Such election shall be by ballot.
(c) The directors, other than those who may be elected by the holders of any class or series of stock having a preference over the Common Stock as to dividends or upon liquidation, shall be classified, with respect to the time for which they severally hold office, into three classes, as nearly equal in number as possible, as determined by the Board of Directors, one class to be originally elected for a term expiring at the annual meeting of stockholders to be held in 1985,
E-1-9
another class to be originally elected for a term expiring at the annual meeting of stockholders to be held in 1986, and another class to be originally elected for a term expiring at the annual meeting of stockholders to be held in 1987, with the directors of each class to hold office until their successors are elected and qualified. At each annual meeting of the stockholders, the successors of the class of directors whose term expires at that meeting shall be elected to hold office for a term expiring at the annual meeting of stockholders held in the third year following the year of their election. No decrease in the number of directors constituting the Board of Directors or change in the restrictions and qualifications for directors shall shorten the term of any incumbent director.
(d) Except as otherwise provided in the Certificate of Incorporation or in these bylaws, each director shall continue in office until the expiration of his term of office and until a successor shall have been elected and shall have qualified, or until the director shall have resigned, or, in the case of a director who is an employee of the Company, until the director shall have resigned from employment with the Company or the director's employment shall have been terminated by the Company. In addition, a director who is not an employee of the Company or who is the Chief Executive Officer of the Company or a retired Chief Executive Officer of the Company shall retire from the position of director at the Annual Meeting following attainment of age 70; an employee who is a director of the Company (other than the Chief Executive Officer or a retired Chief Executive Officer) shall retire from the position of director on the effective date of the director's retirement as an employee of the Company. Any director of the Company may resign at any time by giving written notice to the Chairman of the Board or to the Secretary of the Company. Such resignation shall take effect at the time specified therein; and, unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective. Exceptions to the requirements for the retirement of a director may be made by the Board of Directors.
(e) Subject to the rights under Article FOURTH of the Certificate of Incorporation of any class or series of stock having a preference over the Common Stock as to dividends or upon liquidation to elect directors under specified circumstances, any director or entire class of directors or the entire Board of Directors may be removed from office, with or without cause, only by the affirmative vote of the holders of at least 75% of the outstanding shares of stock of the Company entitled to vote generally in the election of directors, voting together as a single class.
(f) Subject to the rights under Article FOURTH of the Certificate of Incorporation of the Company of the holders of any class or series of stock having a preference over the Common Stock as to dividends or upon liquidation to elect directors under specified circumstances, newly created
E-1-10
directorships resulting from any increase in the number of directors and any vacancies on the Board of Directors resulting from death, resignation, retirement, disqualification, removal or other cause shall be filled only by the affirmative vote of a majority of the remaining directors then in office, even though less than a quorum of the Board of Directors. Any director elected in accordance with the preceding sentence shall hold office for the remainder of the full term of the class of directors in which the new directorship was created or the vacancy occurred and until such director's successor shall have been elected and qualified.
16. The directors may hold their meetings and keep the books of the Company at such place or places as they may from time to time determine.
17. Regular meetings of the Board of Directors may be held at such time as may be fixed from time to time by resolution of the Board of Directors. Unless required by said resolution, notice of any such meeting need not be given.
18. Special meetings of the Board of Directors shall be held whenever called by direction of the Chairman of the Board or any of three of the directors for the time being in office. Notice of each such special meeting shall be mailed, postage prepaid, to each director, addressed to the director at the director's residence or usual place of business, at least two days before the day on which the meeting is to be held, or shall be sent to the director at such place by telegraph, cable, or wireless, or be delivered personally or by telephone, not later than the day before the day on which the meeting is to be held. Every such notice shall state the time and place but, except as provided by these bylaws or by resolution of the Board of Directors, need not state the purposes of the meetings.
19. Anything in these bylaws or in any resolution adopted by the Board of Directors to the contrary notwithstanding, notice of any meeting of the Board of Directors need not be given to any director, if, before or after any such meeting, notice thereof shall be waived by such director in writing or by telegraph, cable or wireless. Any meeting of the Board of Directors shall be a legal meeting without any notice having been given or regardless of the giving of any notice or the adoption of any resolution in reference thereto, if all the directors shall be present thereat or shall have so waived notice thereof. Any action required or permitted to be taken at any meeting of the Board of Directors may be taken without a meeting, if prior to such action a written consent thereto is signed by all members of the Board and such written consent is filed with the minutes of proceedings of the Board of Directors.
E-1-11
20. Five of the directors in office at the time of any regular or special meeting of the Board of Directors shall constitute a quorum for the transaction of business at such meeting and except as may be otherwise specifically provided by statute or by the Certificate of Incorporation or by these bylaws, the act of a majority of the directors present at any such meeting at which a quorum is present shall be the act of the Board of Directors. In the absence of a quorum a majority of the directors present may adjourn any meeting from time to time until a quorum is present. Notice of any adjourned meeting need not be given. The directors shall act only as a board and the individual directors shall have no power as such.
21. At each meeting of the Board of Directors the Chairman of the Board shall preside. The Chairman of the Board may designate another member of the Board of Directors to preside as chairman of a meeting in place of the Chairman of the Board, and in the absence of the Chairman of the Board and any member of the Board of Directors designated by the Chairman of the Board to preside as chairman of the meeting, a majority of the directors present may designate a member of the Board of Directors as chairman to preside at the meeting. The Secretary of the Company or, in the absence of the Secretary, a person appointed by the chairman of the meeting, shall act as secretary of the Board of Directors. The Board of Directors may adopt such rules and regulations for the conduct of their meetings and the management of the affairs of the Company as they shall deem proper and not inconsistent with the law or with these bylaws. At all meetings of the Board of Directors business shall be transacted in s uch order as the Board of Directors may determine.
22. Each director shall be paid such fee, if any, for each meeting of the Board attended and/or such annual fee as shall be determined from time to time by resolution of the Board of Directors, provided that nothing herein contained shall be construed to prevent any director from serving the Company in any other capacity and receiving compensation therefor.
23.(a) Definitions. As used herein, the term "director" shall include each present and former director of the Company and the term "officer" shall include each present and former officer of the Company as such, and the terms "director" and "officer" shall also include each employee of the Company, who, at the Company's request, is serving or may have served as a director or officer of another corporation in which the Company owns directly or indirectly, shares of capital stock or of which it is a creditor. The term "officer" also includes each assistant or divisional officer. The term "expenses" shall include, but not be limited to, reasonable amounts for attorney's fees, costs, disbursements and other expenses and the amount or amounts of judgments, fines, penalties and other liabilities.
(b) Indemnification Granted. Each director and officer shall be and hereby is indemnified by the Company, to the full extent permitted by law, against:
E-1-12
(i) expenses incurred or paid by the director or officer in connection with any claim made against such director or officer, or any actual or threatened action, suit or proceeding (civil, criminal, administrative, investigative or other, including appeals and whether or not relating to a date prior to the adoption of this bylaw) in which such director or officer may be involved as a party or otherwise, by reason of being or having been a director or officer of the Company, or of serving or having served at the request of the Company as a director, officer, employee, or agent of another corporation, partnership, joint venture, trust or other enterprise, or by reason of any action taken or not taken by such director or officer in such capacity, and
(ii) the amount or amounts paid by the director or officer in settlement of any such claim, action, suit or proceeding or any judgment or order entered therein, however, notwithstanding anything to the contrary herein where a director or officer seeks indemnification in connection with a proceeding voluntarily initiated by such director or officer the right to indemnification granted hereunder shall be limited to proceedings where such director or officer has been wholly successful on the merits.
(c) Miscellaneous.
(i) Expenses incurred and amounts paid in settlement with respect to any claim, action, suit or proceeding of the character described in paragraph (b)(i) above may be advanced by the Company prior to the final disposition thereof upon receipt of an undertaking by or on behalf of the recipient to repay such amounts as shall not ultimately be determined to be payable to such recipient under this bylaw.
(ii) The rights of indemnification herein provided for shall be severable, shall not be exclusive of other rights to which any director or officer now or hereafter may be entitled, shall continue as to a person who has ceased to be an indemnified person and shall inure to the benefit of the heirs, executors, administrators and other legal representatives of such a person.
(iii) The provisions of this bylaw shall be deemed to be a contract between the Company and each director or officer who serves in such capacity at any time while such bylaw is in effect.
(iv) The Board of Directors shall have power on behalf of the Company to grant indemnification to any person other than a director or officer to such extent as the Board in its discretion may from time to time determine.
E-1-13
COMMITTEES OF THE BOARD
24.(a) The Board of Directors may, by resolution or resolutions, passed by a majority of the whole Board of Directors, designate an Executive Committee (and may discontinue the same at any time) to consist of three or more of the Directors of the Company. The members shall be appointed by the Board of Directors and shall hold office during the pleasure of the Board of Directors; provided, however, that in the absence or disqualification of any member of the Executive Committee, the member or members thereof present at any meeting and not disqualified from voting, whether or not the member or members constitute a quorum, may unanimously appoint another member of the Board of Directors to act at the meeting in the place of any such absent or disqualified member. The Executive Committee shall have and may exercise, during the intervals between the meetings of the Board of Directors, all of the powers of the Board of Directors in the management of the business and affairs of the Comp any (and shall have power to authorize the seal of the Company to be affixed to all papers which may require it), except that the Executive Committee shall have no power to (i) elect Directors to fill any vacancies or appoint any officers; (ii) fix the compensation of any officer or the compensation of any Director for serving on the Board of Directors or on any committee; (iii) declare any dividend or make any other distribution to the shareholders of the Company; (iv) submit to shareholders any action that needs shareholder authorization; (v) amend or repeal the bylaws or adopt any new bylaw; (vi) amend or repeal any resolution of the Board of Directors which by its terms shall not be so amendable or repealable; (vii) take any final action with respect to the acquisition or disposition of any business at a price in excess of $25,000,000.
(b) The Board of Directors shall, by resolution or resolutions, passed by a majority of the whole Board of Directors designate an Audit Committee to consist of three or more non-employee directors of the Company free from any relationship that, in the opinion of the Board of Directors, would interfere with the exercise of independent judgment as a Committee member. Any director who is a former employee of the Company may not serve on the Audit Committee. The members of the Audit Committee shall be appointed by and hold office during the pleasure of the Board of Directors. A majority of the members of the Audit Committee will constitute a quorum for the transaction of business. It shall be the duty of the Audit Committee (i) to recommend to the Board of Directors a firm of independent accountants to perform the examination of the annual financial statements of the Company; (ii) to review with the independent accountants and with the Controller the proposed scope of the annual audit, past audit experience, the Company's internal audit program, recently completed internal audits and other matters bearing upon the scope of the audit; (iii) to review with the independent accountants and with the Controller significant matters revealed
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in the course of the audit of the annual financial statements of the Company; (iv) to review on a biennial basis that the Company's Standards of Business Conduct have been communicated by the Company to all key employees of the Company and its subsidiaries throughout the world with a direction that all such key employees certify that they have read, understand and are not aware of any violation of the Standards of Business Conduct; (v) to review with the Controller any suggestions and recommendations of the independent accountants concerning the internal control standards and the accounting procedures of the Company; (vi) to meet on a regular basis with a representative or representatives of the Internal Audit Department of the Company and to review the Internal Audit Department's Reports of Operations; (vii) to report its activities and actions to the Board of Directors at least once each fiscal year.
(c) The Board of Directors may, by resolution or resolutions passed by a majority of the whole Board of Directors, designate such other committees as may be deemed advisable (and may discontinue the same at any time), to consist of two or more of the directors of the Company. The members shall be appointed by and shall hold office during the pleasure of the Board of Directors, and the Board of Directors shall prescribe the name or names of such committees, the number of their members and their duties and powers.
(d) Any action required or permitted to be taken at any meeting of any committee may be taken without a meeting, if prior to such action a written consent thereto is signed by all members of the committee and such written consent is filed with the minutes of proceedings of the committee.
25. All committees shall keep written minutes of their proceedings and report the same to the Board of Directors when required.
OFFICERS
26. The officers of the Company shall be a Chairman of the Board, a Vice Chairman of the Board, a President, two or more Vice Presidents (which shall include Senior Vice President, Executive Vice President and other Vice President titles), a Treasurer, a Secretary, a Controller, and such other officers as may be appointed in accordance with these bylaws. The Secretary and Treasurer may be the same person, or a Vice President may hold at the same time the office of Secretary, Treasurer, or Controller.
27. The officers of the Company shall be chosen by the Board of Directors. Each officer shall hold office until a successor shall have been duly chosen and shall have qualified or until the death
E-1-15
or retirement of the officer or until the officer shall resign or shall have been removed in the manner hereinafter provided. The Chairman of the Board and the Vice Chairman of the Board shall be chosen from among the directors.
28. The Board of Directors may appoint such other officers, committees or agents, as the business of the Company may require, including one or more Assistant Treasurers and one or more Assistant Secretaries, each of whom shall hold office for such period, and have such authority and perform such duties as are provided in these bylaws or as the Board of Directors may from time to time determine. The Board of Directors may delegate to any officer or committee the power to appoint and to remove any such subordinate officer or agent.
29. Subject to the provisions of any written agreement, any officer may be removed, either with or without cause, by a vote of the majority of the whole Board of Directors at a regular meeting or a special meeting called for the purpose. Any officer, except an officer elected by the Board of Directors, may also be removed, with or without cause, by any committee or superior officer upon whom such power of removal may be conferred by the Board of Directors.
30. Subject to the provisions of any written agreement, any officer may resign at any time by giving written notice to the Board of Directors, the Chairman of the Board or the Secretary of the Company. Any such resignation shall take effect at the time specified therein; and, unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective.
31. Except as otherwise provided in these bylaws, in the event any officer shall be unable to perform the duties of the office held, whether by reason of absence, disability or otherwise, the Chairman of the Board may designate another officer of the Company to assume the duties of the officer who is unable to carry out the duties of the office; in the event the Chairman of the Board shall be absent and unable to perform the duties of the office of Chairman of the Board, the Chairman of the Board shall designate another officer to assume the duties of the Chairman of the Board; if another officer has not been designated by the Chairman of the Board to assume the duties of the Chairman of the Board, then the Board of Directors shall designate another officer to assume the duties of the Chairman of the Board; in the event the Chairman of the Board shall be disabled and unable to perform the duties of the office of Chairman of the Board, then the Board of Directors shall designate another offi cer to assume the duties of the Chairman of the Board. Any officer designated to assume the duties of another officer shall have all the powers of and be subject to all the restrictions imposed upon the officer whose duties have been assumed.
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32. A vacancy in any office because of death, resignation, removal, disqualification or any other cause shall be filled for the unexpired portion of the term in the manner prescribed by these bylaws for the regular appointment or election to such office.
33. The Chairman of the Board shall be the chief executive officer of the Company and shall have general supervision of the business and operations of the Company, subject, however, to the control of the Board of Directors. The Chairman of the Board shall preside at all meetings of the shareholders and of the Board of Directors. The Chairman of the Board shall perform all of the duties usually incumbent upon a chief executive officer of a corporation and incident to the office of the Chairman of the Board. The Chairman of the Board shall also have such powers and perform such duties as are assigned by these bylaws and shall have such other powers and perform such other duties, not inconsistent with these bylaws, as may from time to time be assigned by the Board of Directors.
34. The Vice Chairman shall have such powers and perform such duties as are assigned by these bylaws and shall have such other powers and perform such other duties, not inconsistent with these bylaws, as from time to time may be assigned by the Board of Directors or the Chairman of the Board.
35. The President shall have such powers and perform such duties as are assigned by these bylaws and shall have such other powers and perform such other duties, not inconsistent with these bylaws, as from time to time may be assigned by the Board of Directors or the Chairman of the Board.
36. Each Vice President shall have such powers and perform such duties as are assigned by these bylaws and shall have such other powers and perform such other duties, not inconsistent with these bylaws, as from time to time may be assigned by the Board of Directors or the Chairman of the Board.
37. The Treasurer shall have charge and custody of, and be responsible for, all funds of the Company. The Treasurer shall regularly enter or cause to be entered in books to be kept by the Treasurer or under the Treasurer's direction for this purpose full and adequate account of all moneys received or paid by the Treasurer for the account of the Company; the Treasurer shall exhibit such books of account and records to any of the directors of the Company at any time upon request at the office of the Company where such books and records shall be kept and shall render a detailed statement of these accounts and records to the Board of Directors as often as it shall require the same. The Treasurer shall also have such powers and perform such duties as are assigned the Treasurer by
E-1-17
these bylaws and shall have such other powers and perform such other duties, not inconsistent with these bylaws, as from time to time may be assigned by the Board of Directors.
38. It shall be the duty of the Secretary to act as Secretary of all meetings of the Board of Directors and of the shareholders of the Company, and to keep the minutes of all such meetings in the proper book or books to be provided for that purpose; the Secretary shall see that all notices required to be given by or for the Company or the Board of Directors or any committee are duly given and served; the Secretary shall be custodian of the seal of the Company and shall affix the seal, or cause it to be affixed, to all documents, the execution of which on behalf of the Company, under its seal shall have been duly authorized in accordance with the provisions of these bylaws. The Secretary shall have charge of the share records and also of the other books, records, and papers of the Company relating to its organization and management as a corporation and shall see that the reports, statements and other documents required by law are properly kept and filed; and shall in general perform all the duties usually incident to the office of Secretary. The Secretary shall also have such powers and perform such duties as are assigned by these bylaws, and shall have such other powers and perform such other duties, not inconsistent with these bylaws, as from time to time may be assigned by the Board of Directors.
39. The Controller shall perform the usual duties pertaining to the office of the Controller. The Controller shall have charge of the supervision of the accounting system of the Company, including the preparation and filing of all reports required by law to be made to any public authorities and officials, and shall also have such powers and perform such duties, not inconsistent with these bylaws, as from time to time may be assigned by the Board of Directors.
40. The Assistant Treasurers and the Assistant Secretaries shall have such powers and perform such duties as are assigned to them by these bylaws and shall have such other powers and perform such other duties, not inconsistent with these bylaws, as from time to time may be assigned to them by the Treasurer or the Secretary, respectively, or by the Board of Directors.
41. The compensation of the Chairman of the Board, Vice Chairman of the Board, President, Vice President, Treasurer, Secretary and Controller shall be fixed by the Board of Directors. The compensation of such other officers as may be appointed in accordance with the provisions of these bylaws may be fixed by the Chairman of the Board. No officer shall be prevented from receiving such compensation by reason of also being a director of the Company.
E-1-18
CONTRACTS, CHECKS, DRAFTS, BANK ACCOUNTS, ETC.
42. The Board of Directors except as in these bylaws otherwise provided, may authorize any officer or officers, agent or agents, in the name of and on behalf of the Company, to enter into any contract or execute and deliver any instrument, and such authority may be general or confined to specific instances; and, unless so authorized by the Board of Directors or expressly authorized by these bylaws, no officer or agent or employee shall have any power or authority to bind the Company by any contract or engagement or to pledge its credit or to render it pecuniarily liable for any purpose or to any amount.
43. No loans shall be contracted on behalf of the Company and no negotiable paper shall be issued in its name unless authorized by resolution of the Board of Directors. When authorized by the Board of Directors, any officer or agent of the Company thereunto authorized may effect loans and advances at any time for the Company from any bank, trust company, or other institution, or from any firm, corporation or individual, and for such loans and advances may make, execute and deliver promissory notes, bonds, or other certificates or evidences of indebtedness of the Company and, when authorized so to do, may pledge, hypothecate or transfer any securities or other property of the Company as security for any such loans or advances. Such authority may be general or confined to specified instances.
44. All checks, drafts and other orders for the payment of moneys out of the funds of the Company and all notes or other evidences of indebtedness of the Company shall be signed on behalf of the Company in such manner as shall from time to time be determined by resolution of the Board of Directors.
45. All funds of the Company not otherwise employed shall be deposited from time to time to the credit of the Company in such banks, trust companies or other depositories as the Board of Directors may select or as may be selected by any officer or officers, agent or agents of the Company to whom such power may from time to time be delegated by the Board of Directors; and for the purpose of such deposit, the Chairman of the Board, the Vice Chairman of the Board, the President, a Vice President, the Treasurer, the Controller, the Secretary or any other officer or agent or employee of the Company to whom such power may be delegated by the Board of Directors, may endorse, assign and deliver checks, drafts and other orders for the payment of moneys which are payable to the order of the Company.
E-1-19
CERTIFICATES AND TRANSFERS OF SHARES
46. The shares of the Company shall be represented by certificates or shall be uncertificated. Each registered holder of shares, upon request to the Company, shall be provided with a certificate of stock, representing the number of shares owned by such holder. Certificates for shares of the Company shall be in such form as shall be approved by the Board of Directors. Such certificates shall be numbered and registered in the order in which they are issued and shall be signed by the Chairman of the Board, the Vice Chairman of the Board, the President or a Vice President and the Secretary or an Assistant Secretary or the Treasurer or an Assistant Treasurer. Where any such certificate is countersigned by a transfer agent, other than the Company or its employee, or by a registrar, other than the Company or its employee, any other signature on such certificate may be a facsimile, engraved, stamped or printed. In the event that an officer whose facsimile signature appears on such certif icate ceases for any reason to hold the office indicated and the Company or its transfer agent has on hand a supply of share certificates bearing such officer's facsimile signature, such certificates may continue to be issued and registered until such supply is exhausted.
47. Transfers of shares of the Company shall be made only on the books of the Company by the holder thereof, or by the holder's attorney thereunto duly authorized and on either the surrender of the certificate or certificates for such shares properly endorsed or upon receipt of proper transfer instructions from the registered owner of uncertificated shares. Every certificate surrendered to the Company shall be marked "Cancelled," with the date of cancellation, and no new certificate shall be issued in exchange therefor until the old certificate has been surrendered and cancelled, except as hereinafter provided. Uncertificated shares shall be cancelled and issuance of new equivalent uncertificated shares shall be made to the person entitled thereto and the transaction shall be recorded upon the books of the Company.
48. The holder of any shares of the Company shall immediately notify the Company of any loss, destruction or mutilation of the certificate therefor and the Company may issue a new certificate in the place of any certificate theretofore issued by it alleged to have been lost, destroyed or mutilated. The Board of Directors may, in its discretion, as conditions to the issue of any such new certificate, require the owner of the lost or destroyed certificate or the owner's legal representatives to make proof satisfactory to the Board of Directors of the loss or destruction thereof and to give the Company a bond in such form, in such sum and with such surety or sureties as the Board of Directors may direct, to indemnify the Company against any claim that may be made against it on account of any such certificate so alleged to have been lost or destroyed.
E-1-20
DETERMINATION OF RECORD DATE
49. In order that the Company may determine the shareholders entitled to notice of or to vote at any meeting of shareholders or any adjournment thereof or entitled to receive payment of any dividend or other distribution or allotment of any rights or entitled to exercise any rights in respect of any change, conversion or exchange of stock or for the purpose of any other lawful action, the Board of Directors may fix in advance a record date which shall not be more than 60 nor less than 10 days before the date of such meeting nor more than 60 days prior to any other action.
If no record date is fixed:
(i) The record date for determining shareholders entitled to notice of or
to vote at a meeting of shareholders shall be at the close of business on the day next preceding the day on which notice is given, or if notice is waived, at the close of business on the day next preceding the day on which the meeting is held.
(ii) The record date for determining shareholders for any other purpose
shall be at the close of business on the day on which the Board of Directors adopts the resolution relating thereto.
A determination of shareholders of record entitled to notice of or to vote at a meeting of shareholders shall apply to any adjournment of the meeting provided, however, that the Board of Directors may fix a new record date for the adjourned meeting.
REGISTERED SHAREHOLDERS
50. The Company shall be entitled to treat the holder of record of any share or shares of stock as the holder in fact thereof and, accordingly, shall not be bound to recognize any equitable or other claim to or interest in such share on the part of any other person, whether or not it shall have express or other notice thereof, save as expressly provided by the laws of Delaware.
FISCAL YEAR
51. The fiscal year shall begin on the first day of January and end on the thirty-first day of December in each year.
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NOTICES
52. Whenever under the provision of these bylaws notice is required to be given to any director or shareholder, it shall be construed to mean personal notice, but such notice may be given in writing, by mail, by depositing the same in a post office or letter box, in a postpaid sealed wrapper, addressed to such director or shareholder at such address as appears on the books of the Company, or, in default of other address, to such director or shareholder, at the General Post Office in the City of Wilmington, Delaware, and such notice shall be deemed to be given at the time when the same shall be thus mailed.
53. Any notice required to be given under these bylaws may be waived in writing, signed by the person or persons entitled to said notice, whether before or after the time stated therein.
AMENDMENTS
54. Except as otherwise provided in the Certificate of Incorporation of the Company and consistent therewith, these bylaws may be altered, amended or repealed or new bylaws may be made by the affirmative vote of the holders of record of a majority of the shares of the Company entitled to vote, at any annual or special meeting, provided that such proposed action shall be stated in the notice of such meeting, or, by a vote of the majority of the whole Board of Directors, at any regular meeting without notice, or at any special meeting provided that notice of such proposed action shall be stated in the notice of such special meeting.
E-1-22
Exhibit 10r
C.G. Tharp
December 6, 2000
K.E. Weg
Retirement Arrangements
C.A. Heimbold, Jr.
As we discussed, you will retire from the Company on February 1, 2001 ("retirement date"). Outlined below are the various payments and benefits you would normally receive corresponding to your retirement date of February 1, 2001. Additionally, I have outlined the supplemental payments and benefits which the Company will provide to you.
Retirement Benefits
Supplemental Payments and Benefits
Ken, we would be happy to discuss any questions you may have regarding the items outlined above.
If you accept the terms of this agreement, please sign the agreement, retain a copy for your records, and return the original to me.
By /s/ Charles G. Tharp
Charles G. Tharp
Senior Vice President
Human Resources
Agreed to:
By /s/ Kenneth E. Weg
Kenneth E. Weg
12/18/00
Date
December 6, 2000
Kenneth E. Weg
12 Boudinot Street
Princeton, NJ 08540
Dear Ken:
This letter sets for the terms of your Consulting Agreement with Bristol-Myers Squibb Company ("the Company").
Your services shall consist of consulting, assisting and advising on subjects in your area of expertise pertaining to general management, business operations and other matters. Specific projects will be identified for you by Charles A. Heimbold, Jr., Chairman of the Board and Chief Executive Officer, Bristol-Myers Squibb Company, and upon his retirement, his successor, or their designees, based on mutual agreement as to their nature and substance, and taking into consideration your availability.
This agreement shall be in effect for a twenty-four month period commencing February 1, 2001 and ending February 1, 2003. Your consulting fee during that two-year period shall be one hundred thousand dollars ($100,000) per year representing 30 consulting days per year, and will be paid in quarterly installments at the end of each three-month period. Should your services be needed for more than 30 days during any one-year period, your fee will be $3,333.34 per day. You will receive full reimbursement for all reasonable expenses (e.g. travel and entertainment) you incur in rendering services under this Agreement provided you provide documentation of such expenses in accordance with the usual practices of the Company.
Any amounts paid pursuant to this agreement shall be in addition to any amounts, funds, proceeds, benefits and awards due or to become due to you from the Company as a result of your prior employment by the Company or under any separate agreement with the Company.
It is understood that during the course of your consulting you may be exposed to material and information that is confidential to the Company. All such material and information, whether tangible or intangible, made available, disclosed or otherwise known to you as a result of your services under this agreement or by reason of your prior employment with the Company, shall be considered the sole property of the Company, shall be used by you only for the benefit of the Company during the term of this Agreement, and shall not be disclosed to others except with the Company's prior approval. This obligation of confidentiality shall survive the termination of this Agreement. Upon termination of this Agreement you shall promptly return all material, data and documents which you may then have in your possession as a result of your services under the Agreement.
It is understood that your status shall be that of independent contractor and not of agent or employee of the Company. In this connection, you will not be entitled to any employee benefits from the Company as a result of this Agreement or the services rendered under it. You further agree that during the terms of this Agreement you will not accept employment with or provide any services to anyone who is a competitor of Bristol-Myers Squibb Company without the prior approval of the Company.
Finally, you are reminded of the continuing nature of your obligation to maintain in confidence and not to make use of information concerning the Company's business or affairs of any nature that is not otherwise a matter of public record. This obligation which you acknowledged and agreed to in the agreement concerning confidentiality that you executed when your employment with the Company began, continues after the termination of your employment.
Please acknowledge your understanding of and agreement to the provisions of this Consulting Agreement by signing below.
Very truly yours,
By /s/ Charles G. Tharp
Charles G. Tharp
Senior Vice President
Human Resources
AGREED TO AND ACCEPTED:
By /s/ Kenneth E. Weg
__KENNETH E. WEG
12/18/00
DATE
Exhibit 21
BRISTOL-MYERS SQUIBB COMPANY
SUBSIDIARY LIST
2309 Realty Corporation
3130827 CANADA INC.
345 Park Corporation
77 Wilson St., Corp.
A.G. Medical Services, P.A.
Alive & Well, Inc.
Allard Laboratories, Inc.
Allard Labs Acquisition LLC
AMCARE Limited
Apothecon BV
Apothecon Farmaceutica Ltda.
Apothecon, Inc.
Apothecon, S.A.
Astel Laboratoires S.A.R.L.
B-MS GeneRx
B. L. Pharmaceuticals (Proprietary) Limited
Blisa Acquisition LLC
Blisa, Inc.
BMS Holdings
BMS Investco SAS
BMS Music Company
BMS Pharmaceutical Korea Limited
BMS-Generiques SA
BMSF SAS
BMSIC Pharma Handels GmbH & Co. KG
BMSIC Pharma-Handels Verwaltungs GmbH
Boclaro Inc.
Bristol (Iran) S.A.
Bristol Arzneimittel G.m.b.H.
Bristol Caribbean, Inc.
Bristol Foundation
Bristol Iran Private Company Limited
Bristol Laboratories Corporation
Bristol Laboratories Inc.
Bristol Laboratories International, S.A.
Bristol Laboratories Medical Information Systems Inc.
Bristol Pharmaceutical Information Center, S.A.
Bristol Pharmaceuticals K.K.
Bristol-Myers (Bangladesh) Inc.
Bristol-Myers (Japan) Limited
Bristol-Myers (Private) Limited
BRISTOL-MYERS SQUIBB COMPANY
SUBSIDIARY LIST
Bristol-Myers (Zaire) Ltd.
Bristol-Myers Award Superannuation Pty. Ltd.
Bristol-Myers Barceloneta, Inc.
Bristol-Myers Company Limited
Bristol-Myers de Mexico, S. de R. L. de C.V.
Bristol-Myers Lion Ltd.
Bristol-Myers Middle East S.A.L.
Bristol-Myers Nederland Inc.
Bristol-Myers Oncology Therapeutic Network, Inc.
Bristol-Myers Overseas Corporation
Bristol-Myers Overseas Corporation (Guam Branch)
Bristol-Myers Overseas Corporation (Korea - Branch)
Bristol-Myers Pakistan (Pvt.) Limited
Bristol-Myers S.A.
Bristol-Myers Squibb (China) Investment Co., Ltd.
Bristol-Myers Squibb (Hong Kong) Limited
Bristol-Myers Squibb (Israel) Limited
Bristol-Myers Squibb (Malaysia) Sendirian Berhad
Bristol-Myers Squibb (N.Z.) Limited
Bristol-Myers Squibb (Phil.) Inc.
Bristol-Myers Squibb (Proprietary) Limited
Bristol-Myers Squibb (Russia)
Bristol-Myers Squibb (Shanghai) Trading Co. Limited
Bristol-Myers Squibb (Singapore) Pte. Limited
Bristol-Myers Squibb (Taiwan) Ltd.
Bristol-Myers Squibb (Thailand) Ltd.
Bristol-Myers Squibb (West Indies) Ltd.
Bristol-Myers Squibb A.E.B.E.
Bristol-Myers Squibb A.G.
Bristol-Myers Squibb Aktiebolag
Bristol-Myers Squibb Argentina, S.A.
Bristol-Myers Squibb Asia/Pacific, Inc. (Singapore - Branch)
Bristol-Myers Squibb Auslandsbeteiligungs Holding, GmbH
Bristol-Myers Squibb Australia Pty. Ltd.
Bristol-Myers Squibb B.V.
Bristol-Myers Squibb Barceloneta Holdings, L.L.C.
Bristol-Myers Squibb Belgium, S.A.
Bristol-Myers Squibb Brasil, S.A.
Bristol-Myers Squibb Bulgaria EOOD
Bristol-Myers Squibb Business Services Limited
Bristol-Myers Squibb Canada Inc.
Bristol-Myers Squibb Caribbean Company
Bristol-Myers Squibb Caribbean Holdings, L.L.C.
Bristol-Myers Squibb de Colombia S.A.
BRISTOL-MYERS SQUIBB COMPANY
SUBSIDIARY LIST
Bristol-Myers Squibb de Costa Rica, S.A.
Bristol-Myers Squibb de Guatemala, S. A.
Bristol-Myers Squibb de Mexico, S de R.L. de C.V.
Bristol-Myers Squibb de Venezuela, S.A.
Bristol-Myers Squibb Delta Holdings, L.L.C.
Bristol-Myers Squibb Dominicana, S.A.
Bristol-Myers Squibb Ecuador C.A.
Bristol-Myers Squibb Eesti Aktsiaselts
Bristol-Myers Squibb EOOD
Bristol-Myers Squibb Europa PLC
Bristol-Myers Squibb Europe Headquarters SARL
Bristol-Myers Squibb Export SA (Slovak Republic)
Bristol-Myers Squibb Export SA
Bristol-Myers Squibb Farmaceutica Portuguesa Limitada
Bristol-Myers Squibb Finance Ltd.
Bristol-Myers Squibb Foreign Sales Corporation
Bristol-Myers Squibb G.m.b.H.
Bristol-Myers Squibb Ges. m.b.H.
Bristol-Myers Squibb Global Properties Ltd.
Bristol-Myers Squibb Holding Germany GMBH
Bristol-Myers Squibb Holdings B.V.
Bristol-Myers Squibb Holdings Limited
Bristol-Myers Squibb Holdings Limited (Ireland - Branch)
Bristol-Myers Squibb Holdings Limited (Kenya - Branch)
Bristol-Myers Squibb Ilaclari Limited Sirketi
Bristol-Myers Squibb Ilaclari, Inc.
Bristol-Myers Squibb Ilaclari, Inc. (Turkey - Branch)
Bristol-Myers Squibb International Company
Bristol-Myers Squibb International Corporation
Bristol-Myers Squibb International Corporation (Belgium - Branch)
Bristol-Myers Squibb International Corporation (Egypt - Branch)
Bristol-Myers Squibb International Corporation (Spain - Branch)
Bristol-Myers Squibb International Corporation (BMSICII)
Bristol-Myers Squibb International Insurance Company
Bristol-Myers Squibb International Limited
Bristol-Myers Squibb Investco, Inc.
Bristol-Myers Squibb Italia Finance SRL
Bristol-Myers Squibb K.K.
Bristol-Myers Squibb Korea Ltd.
Bristol-Myers Squibb Laboratories Company
Bristol-Myers Squibb Manufacturing
Bristol-Myers Squibb Manufacturing Company
Bristol-Myers Squibb Manufacturing Holdings, L.L.C.
Bristol-Myers Squibb MEA GmbH
BRISTOL-MYERS SQUIBB COMPANY
SUBSIDIARY LIST
Bristol-Myers Squibb MEA GmbH (Saudi Arabia - Branch)
Bristol-Myers Squibb MEA GmbH (Egypt - Branch)
Bristol-Myers Squibb Norway Ltd.
Bristol-Myers Squibb Pakistan (Pvt.) Ltd.
Bristol-Myers Squibb Peru S.A.
Bristol-Myers Squibb Pharmaceuticals Limited (England)
Bristol-Myers Squibb Pharmaceuticals Limited (Ireland)
Bristol-Myers Squibb Products S.A.
Bristol-Myers Squibb Puerto Rico, Inc.
Bristol-Myers Squibb Research Foundation Africa
Bristol-Myers Squibb S.p.A.
Bristol-Myers Squibb Securitization L.P.
Bristol-Myers Squibb Service Ltd.
Bristol-Myers Squibb Slovakia s r.o.
Bristol-Myers Squibb Sp. z o.o.
Bristol-Myers Squibb Spol. s r.o.
Bristol-Myers Squibb Superannuation Plan Pty. Ltd.
Bristol-Myers Squibb UPSA Tunisie
Bristol-Myers Squibb Zentrum uer Forschung Und Fortbildung Im
Gesundheitswesen G.m.b.H.
Bristol-Myers Squibb, S.A.
Cancer Research, Inc.
CJG Partners, L.P.
Clairol (China) Ltd.
Clairol Brazil Ltda.
Clairol GmbH.
Clairol Incorporated
Clairol International S.r.l.
Clairol Limited
Clairol Properties, Inc.
Comercializadora RPM, S. De R.L. De C.V.
Compania Bristol-Myers Squibb de Centro America (El Salvador Branch)
Compania Bristol-Myers Squibb de Centro America (Honduras Branch)
Compania Bristol-Myers Squibb de Centro America (Nicaragua Branch)
Compania Bristol-Myers Squibb de Centro America (Panama Branch)
Convatec Limited
ConvaTec Praha spol. s r.o.
Convatec Spot s r.o.
Convatec Vertriebs G.m.b.H.
Convatec, S.A.
CRBM GIE
Duart Industries, Ltd.
E. R. Squibb & Sons de Venezuela, C.A.
E. R. Squibb & Sons Inter-American (Chile - Branch)
BRISTOL-MYERS SQUIBB COMPANY
SUBSIDIARY LIST
E. R. Squibb & Sons Inter-American Corporation
E. R. Squibb & Sons Inter-American Corporation (Colombia - Branch)
E. R. Squibb & Sons Inter-American Corporation (PRico - Branch)
E. R. Squibb & Sons Limited
E. R. Squibb & Sons, L.L.C.
Elektrochemische Ges.Hirschfelde M.b.H.
ESS Partners, L.P.
EWI Corporation
G.I.E. Centre de Recherche de Biologie Moleculaire
G.I.E. Institut de Recherche Squibb
Grove Insurance Company Ltd.
Grove Limited
Grove Products (Far East) Limited
Grove Products (Far East) Limited (India - Branch)
Heyden Farmaceutica Portugesa Limitada
Iris Acquisition Corp.
JG Partners, L.P.
Kingsdown Medical Consultants Limited
KPMG
Laboratoire Oberlin
Laboratoires Convatec S.A.
Laboratoires Guieu France S.a.r.l.
Laboratoires UPSA, SAS
Lawrence Laboratories
Linson Investments Limited
Linson Pharma Inc.
Listo B.V.
Little Sycamore Limited
Mead Johnson & Company
Mead Johnson (Guangzhou) Ltd.
Mead Johnson (Manufacturing) Jamaica Limited
Mead Johnson A.E.B.E.
Mead Johnson B.V.
Mead Johnson de Mexico, S. de R.L. de C.V.
Mead Johnson Farmaceutica Limitada
Mead Johnson International Limited (Argentine - Branch)
Mead Johnson International Limited (Canada)
Mead Johnson International Limited (Colombia - Branch)
Mead Johnson Jamaica Ltd.
Mead Johnson Limited
Mead Johnson Nutritional GmbH
MEC Subsidiary Corporation
Medical Engineering Corporation
Monarch Crown Corporation
BRISTOL-MYERS SQUIBB COMPANY
SUBSIDIARY LIST
NOVACARE Limited
O.o.o. Bristol-Myers Squibb
O.o.o. Bristol-Myers Squibb Manufacturing
Oncogen Limited Partnership
Oncology Therapeutics Network Automated Technologies, Inc.
Oncology Therapeutics Network Corporation
Oncology Therapeutics Network Joint Venture, L.P.
Osmat S.A.
OTN Funding Corp.
OTN Online, Inc.
OTN Parent Corp.
Oy Bristol-Myers Squibb (Finland) AB
P. T. Squibb Indonesia Tbk
Pharmagen
Pharmavit Praha spol. S.r.o.
Pharmavit Rt.
PRB Partners, L.P.
Princeton Pharmaceuticals, S.A.
Recherche et Propriete Industrielle
Redmond Products de Mexico, S. De R.L. De C.V.
Redmond Products Distributing, Inc.
Redmond Products International, Inc.
Redmond Products, Inc.
Route 22 Real Estate Holding Corporation
RPI Management, Inc.
Salorpharma G.m.b.H.
Sanofi Pharma Bristol-Myers Squibb SNC
Schuppert Meubelen Holten B.V.
Sino-American Shanghai Squibb Pharmaceuticals Limited
Societe Francaise de Complements Alimentaires (S.O.F.C.A.)
Sphinx Holdings Company, Inc.
Squibb (Far East) Limited
Squibb (Far East) Limited (Taiwan - Branch)
Squibb (Nigeria) Limited
Squibb (Thailand) Limited
Squibb ApS
Squibb Convatec Medical Products Co. Ltd.
Squibb Development Limited
Squibb Farmaceutica Portuguesa, Limitada
Squibb Industria Farmaceutica, S.A.
Squibb Manufacturing, Inc.
Squibb Middle East S.A. (Egypt - Branch)
Squibb Middle East S.A. (Jordan - Branch)
Squibb Middle East S.A. (Panama)
BRISTOL-MYERS SQUIBB COMPANY
SUBSIDIARY LIST
Squibb Overseas Investments, Inc.
Squibb Pacific Limited
Squibb Pharma G.m.b.H.
Squibb Properties, Inc.
Squibb Surgicare Limited
Squibb-von Heyden G.m.b.H.
Stamford Holdings B.V.
Swords Holdings I, L.L.C.
Swords Holdings II, L.L.C.
Swords Laboratories
T S V Corporation
Tallosa, S.A.
The B-M Group (Proprietary) Limited
Unterstuetzungskasse Bristol-Myers Squibb G.m.b.H.
UPSA CONSEIL
UPSA S.p.a.
Upsamedica LDA
Von Heyden Pharma G.m.b.H.
Wallingford Research, Inc.
Westwood-Intrafin, S.A.
Westwood-Squibb Holdings, Inc.
Westwood-Squibb Pharmaceuticals, Inc.
Zimmer B.V.
Zimmer Caribe, Inc.
Zimmer Chirurgie G.m.b.H.
Zimmer Europe Limited
Zimmer K.K
Zimmer Limited
Zimmer New Zealand Limited
Zimmer of Canada Limited
Zimmer Pte. Ltd.
Zimmer S. A. S.(France)
Zimmer S.A. (Spain)
Zimmer S.R.L.
Zimmer SAS
Zimmer, Inc.
Zimmer - 1 L.L.C.
Zimmer - 2 L.L.C.
Zimmer - 3 L.L.C.
Zimmer - 4 L.L.C.
Zimmer - 5 L.L.C.
Zimmer - 6 L.L.C.
Exhibit 23
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference in the Registration Statements on Form S-8 (Nos. 33-30856, 33-38411, 33-38587, 33-44788, 333-47403, 33-52691, 33-30756-02, 33-58187, and 333-02873), Form S-4 (No. 333-09519), Form S-3 (Nos. 33-33682, 33-62496 and 333-49227) of Bristol-Myers Squibb Company of our report dated January 24, 2001 relating to the financial statements and the financial statement schedule, which appears in this Form 10-K.
/s/ PricewaterhouseCoopers LLP
PRICEWATERHOUSECOOPERS LLP
New York, New York
March 30, 2001
Exhibit 99
CAUTIONARY STATEMENT PURSUANT TO PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 - "SAFE HARBOR" FOR FORWARD LOOKING STATEMENTS.
This Form 10-K Annual Report, and other written and oral statement that the Company makes from time to time, contain certain "forward-looking" statements" all of which are subject to risks and uncertainties. One can identify these forward-looking statements by the fact they use words such as "anticipate" "estimate," "expect," "project," "intend," "plan," "believe" and others words of similar meaning and expression in connection with any discussion of future operating or financial performance. One can also identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements are likely to relate to, among other things, the Company's goals, plans and projections regarding its financial position, results of operations, market position and product development, which are based on current expectations that involve in herit risks and uncertainties, including factors that could delay, divert or change any of them in the next several years.
Although it is not possible to predict or identify all factors, they may include the following:
No assurance can be given that any goal or plan set forth in forward looking statements can be achieved and readers are cautioned not to place undue reliance on such statements, which speak only as of the date made. The Company undertakes no obligation to release publicly any revisions to forward looking-statements as a result of future events or developments.