EX-99.2 3 q32014ex992.htm CERTAIN SUPPLEMENTAL INFORMATION Q3 2014 Ex. 99.2

Exhibit 99.2

BRISTOL-MYERS SQUIBB COMPANY
QUARTERLY TREND ANALYSIS OF REVENUES
(Unaudited, dollars in millions)
Revenues
 
2013
 
2014
 
% Change
 
FX Impact
 
 
1st Qtr
 
2nd Qtr
 
6 Months
 
3rd Qtr
 
9 Months
 
4th Qtr
 
Year
 
1st Qtr
 
2nd Qtr
 
6 Months
 
3rd Qtr
 
9 Months
 
4th Qtr
 
Year
 
Qtr vs. Qtr
 
YTD vs. YTD
 
Qtr vs. Qtr
 
YTD vs. YTD
Total
 
$
3,831

 
$
4,048

 
$
7,879

 
$
4,065

 
$
11,944

 
$
4,441

 
$
16,385

 
$
3,811

 
$
3,889

 
$
7,700

 
$
3,921

 
$
11,621

 
 
 
 
 
(4)%
 
(3)%
 
—
 
—
    US and Puerto Rico
 
1,971

 
2,045

 
4,016

 
2,037

 
6,053

 
2,265

 
8,318

 
1,765

 
1,901

 
3,666

 
1,968

 
5,634

 
 
 
 
 
(3)%
 
(7)%
 
—
 
—
    Europe
 
946

 
950

 
1,896

 
985

 
2,881

 
1,049

 
3,930

 
948

 
908

 
1,856

 
814

 
2,670

 
 
 
 
 
(17)%
 
(7)%
 
1%
 
2%
    Rest of the World
 
765

 
835

 
1,600

 
805

 
2,405

 
890

 
3,295

 
830

 
811

 
1,641

 
838

 
2,479

 
 
 
 
 
4%
 
3%
 
(3)%
 
(4)%
    Other
 
149

 
218

 
367

 
238

 
605

 
237

 
842

 
268

 
269

 
537

 
301

 
838

 
 
 
 
 
26%
 
39%
 
—
 
—
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
% of Revenues
 
2013
 
2014
 
 
 
 
 
 
 
 
 
 
1st Qtr
 
2nd Qtr
 
6 Months
 
3rd Qtr
 
9 Months
 
4th Qtr
 
Year
 
1st Qtr
 
2nd Qtr
 
6 Months
 
3rd Qtr
 
9 Months
 
4th Qtr
 
Year
 
 
 
 
 
 
 
 
Total
 
100.0
%
 
100.0
%
 
100.0
%
 
100.0
%
 
100.0
%
 
100.0
%
 
100.0
%
 
100.0
%
 
100.0
%
 
100.0
%
 
100.0
%
 
100.0
%
 
 
 
 
 
 
 
 
 
 
 
 
    US and Puerto Rico
 
51.4
%
 
50.5
%
 
51.0
%
 
50.1
%
 
50.7
%
 
51.0
%
 
50.8
%
 
46.3
%
 
48.9
%
 
47.6
%
 
50.2
%
 
48.5
%
 
 
 
 
 
 
 
 
 
 
 
 
    Europe
 
24.7
%
 
23.5
%
 
24.1
%
 
24.2
%
 
24.1
%
 
23.6
%
 
24.0
%
 
24.9
%
 
23.3
%
 
24.1
%
 
20.8
%
 
23.0
%
 
 
 
 
 
 
 
 
 
 
 
 
    Rest of the World
 
20.0
%
 
20.6
%
 
20.3
%
 
19.8
%
 
20.1
%
 
20.0
%
 
20.1
%
 
21.8
%
 
20.9
%
 
21.3
%
 
21.4
%
 
21.3
%
 
 
 
 
 
 
 
 
 
 
 
 
    Other
 
3.9
%
 
5.4
%
 
4.6
%
 
5.9
%
 
5.1
%
 
5.4
%
 
5.1
%
 
7.0
%
 
6.9
%
 
7.0
%
 
7.6
%
 
7.2
%
 
 
 
 
 
 
 
 
 
 
 
 


1

BRISTOL-MYERS SQUIBB COMPANY
REVENUES AND COMPOSITION OF CHANGE IN REVENUES
FOR THE PERIOD ENDED SEPTEMBER 30, 2014
(Unaudited, dollars in millions)
QUARTER-TO-DATE
 
Revenues
 
Analysis of % Change
 
 
2014
 
2013
 
Total Change
 
Volume
 
Price
 
Foreign Exchange
US and Puerto Rico
 
$
1,968

 
$
2,037

 
(3)%
 
(8)%
 
5%
 
—
Europe
 
814

 
985

 
(17)%
 
(12)%
 
(6)%
 
1%
Rest of the World
 
838

 
805

 
4%
 
8%
 
(1)%
 
(3)%
Other
 
301

 
238

 
26%
 
N/A
 
N/A
 
—
Total
 
$
3,921

 
$
4,065

 
(4)%
 
(4)%
 
—
 
—
 
 
 
 
 
 
 
 
 
 
 
 
 
YEAR-TO-DATE
 
Revenues
 
Analysis of % Change
 
 
2014
 
2013
 
Total Change
 
Volume
 
Price
 
Foreign Exchange
US and Puerto Rico
 
$
5,634

 
$
6,053

 
(7)%
 
(11)%
 
4%
 
—
Europe
 
2,670

 
2,881

 
(7)%
 
(4)%
 
(5)%
 
2%
Rest of the World
 
2,479

 
2,405

 
3%
 
9%
 
(2)%
 
(4)%
Other
 
838

 
605

 
39%
 
N/A
 
N/A
 
—
Total
 
$
11,621

 
$
11,944

 
(3)%
 
(3)%
 
—
 
—


2

BRISTOL-MYERS SQUIBB COMPANY
EARNINGS FROM OPERATIONS
(Unaudited, dollars and shares in millions except per share data)
 
 
2013
 
2014
 
% Change
 
 
1st Qtr
 
2nd Qtr
 
6 Months
 
3rd Qtr
 
9 Months
 
4th Qtr
 
Year
 
1st Qtr
 
2nd Qtr
 
6 Months
 
3rd Qtr
 
9 Months
 
4th Qtr
 
Year
 
Qtr vs. Qtr
 
YTD vs. YTD
Net product sales
 
$
2,957

 
$
3,024

 
$
5,981

 
$
3,025

 
$
9,006

 
$
3,298

 
$
12,304

 
$
2,807

 
$
2,770

 
$
5,577

 
$
2,843

 
$
8,420

 
 
 
 
 
(6)%
 
(7)%
Alliance and other revenues
 
874

 
1,024

 
1,898

 
1,040

 
2,938

 
1,143

 
4,081

 
1,004

 
1,119

 
2,123

 
1,078

 
3,201

 
 
 
 
 
4%
 
9%
Total Revenues
 
$
3,831

 
$
4,048

 
$
7,879

 
$
4,065

 
$
11,944

 
$
4,441

 
$
16,385

 
$
3,811

 
$
3,889

 
$
7,700

 
$
3,921

 
$
11,621

 
 
 
 
 
(4)%
 
(3)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of products sold
 
1,063

 
1,108

 
2,171

 
1,175

 
3,346

 
1,273

 
4,619

 
968

 
991

 
1,959

 
1,007

 
2,966

 
 
 
 
 
(14)%
 
(11)%
Marketing, selling and administrative
 
994

 
1,042

 
2,036

 
980

 
3,016

 
1,068

 
4,084

 
957

 
951

 
1,908

 
1,029

 
2,937

 
 
 
 
 
5%
 
(3)%
Advertising and product promotion
 
189

 
218

 
407

 
194

 
601

 
254

 
855

 
163

 
187

 
350

 
171

 
521

 
 
 
 
 
(12)%
 
(13)%
Research and development
 
930

 
951

 
1,881

 
893

 
2,774

 
957

 
3,731

 
946

 
1,416

 
2,362

 
983

 
3,345

 
 
 
 
 
10%
 
21%
Other (income)/expense
 
(19
)
 
199

 
180

 
5

 
185

 
20

 
205

 
(208
)
 
(104
)
 
(312
)
 
(277
)
 
(589
)
 
 
 
 
 
**
 
**
Total Expenses
 
3,157

 
3,518

 
6,675

 
3,247

 
9,922

 
3,572

 
13,494

 
2,826

 
3,441

 
6,267

 
2,913

 
9,180

 
 
 
 
 
(10)%
 
(7)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings Before Income Taxes
 
$
674

 
$
530

 
$
1,204

 
$
818

 
$
2,022

 
$
869

 
$
2,891

 
$
985

 
$
448

 
$
1,433

 
$
1,008

 
$
2,441

 
 
 
 
 
23%
 
21%
Provision for Income Taxes
 
51

 
—

 
51

 
126

 
177

 
134

 
311

 
49

 
114

 
163

 
276

 
439

 
 
 
 
 
**
 
**
Net Earnings
 
$
623

 
$
530

 
$
1,153

 
$
692

 
$
1,845

 
$
735

 
$
2,580

 
$
936

 
$
334

 
$
1,270

 
$
732

 
$
2,002

 
 
 
 
 
6%
 
9%
Net Earnings/(Loss) Attributable to Noncontrolling Interest
 
14

 
(6
)
 
8

 
—

 
8

 
9

 
17

 
(1
)
 
1

 
—

 
11

 
11

 
 
 
 
 
**
 
38%
Net Earnings Attributable to BMS
 
$
609

 
$
536

 
$
1,145

 
$
692

 
$
1,837

 
$
726

 
$
2,563

 
$
937

 
$
333

 
$
1,270

 
$
721

 
$
1,991

 
 
 
 
 
4%
 
8%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted Earnings per Common Share*
 
$
0.37

 
$
0.32

 
$
0.69

 
$
0.42

 
$
1.11

 
$
0.44

 
$
1.54

 
$
0.56

 
$
0.20

 
$
0.76

 
$
0.43

 
$
1.19

 
 
 
 
 
2%
 
7%
Average Common Shares Outstanding - Diluted
 
1,655

 
1,660

 
1,658

 
1,662

 
1,659

 
1,666

 
1,662

 
1,666

 
1,669

 
1,668

 
1,670

 
1,668

 
 
 
 
 
—
 
1%
Dividends declared per common share
 
$
0.35

 
$
0.35

 
$
0.70

 
$
0.35

 
$
1.05

 
$
0.36

 
$
1.41

 
$
0.36

 
$
0.36

 
$
0.72

 
$
0.36

 
$
1.08

 
 
 
 
 
3%
 
3%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2013
 
2014
 
 
 
 
% of Total Revenues
 
1st Qtr
 
2nd Qtr
 
6 Months
 
3rd Qtr
 
9 Months
 
4th Qtr
 
Year
 
1st Qtr
 
2nd Qtr
 
6 Months
 
3rd Qtr
 
9 Months
 
4th Qtr
 
Year
 
 
 
 
Gross Margin
 
72.3
%
 
72.6
%
 
72.4
%
 
71.1
%
 
72.0
%
 
71.3
%
 
71.8
%
 
74.6
%
 
74.5
%
 
74.6
%
 
74.3
%
 
74.5
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Ratios
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effective tax rate
 
7.6
%
 
—

 
4.2
%
 
15.4
%
 
8.8
%
 
15.4
%
 
10.8
%
 
5.0
%
 
25.4
%
 
11.4
%
 
27.4
%
 
18.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other (Income)/Expense
 
2013
 
2014
 
% Change
 
 
1st Qtr
 
2nd Qtr
 
6 Months
 
3rd Qtr
 
9 Months
 
4th Qtr
 
Year
 
1st Qtr
 
2nd Qtr
 
6 Months
 
3rd Qtr
 
9 Months
 
4th Qtr
 
Year
 
Qtr vs. Qtr
 
YTD vs. YTD
Interest expense
 
$
50

 
$
50

 
$
100

 
$
46

 
$
146

 
$
53

 
$
199

 
$
54

 
$
46

 
$
100

 
$
50

 
$
150

 
 
 
 
 
9%
 
3%
Investment income
 
(25
)
 
(28
)
 
(53
)
 
(23
)
 
(76
)
 
(28
)
 
(104
)
 
(23
)
 
(28
)
 
(51
)
 
(20
)
 
(71
)
 
 
 
 
 
(13)%
 
(7)%
Provision for restructuring
 
33

 
173

 
206

 
6

 
212

 
14

 
226

 
21

 
16

 
37

 
35

 
72

 
 
 
 
 
**
 
(66)%
Litigation charges/(recoveries)
 
—

 
(22
)
 
(22
)
 
17

 
(5
)
 
25

 
20

 
29

 
(20
)
 
9

 
10

 
19

 
 
 
 
 
(41)%
 
**
Equity in net income of affiliates
 
(36
)
 
(50
)
 
(86
)
 
(42
)
 
(128
)
 
(38
)
 
(166
)
 
(36
)
 
(33
)
 
(69
)
 
(12
)
 
(81
)
 
 
 
 
 
(71)%
 
(37)%
Out-licensed intangible asset impairment
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
18

 
18

 
 
 
 
 
**
 
**
Gain on sale of product lines, businesses and assets
 
(1
)
 
—

 
(1
)
 
—

 
(1
)
 
(1
)
 
(2
)
 
(259
)
 
7

 
(252
)
 
(315
)
 
(567
)
 
 
 
 
 
**
 
**
Other alliance and licensing income
 
(57
)
 
(32
)
 
(89
)
 
(31
)
 
(120
)
 
(28
)
 
(148
)
 
(108
)
 
(144
)
 
(252
)
 
(102
)
 
(354
)
 
 
 
 
 
**
 
**
Pension curtailments, settlements and special termination benefits
 
—

 
101

 
101

 
37

 
138

 
27

 
165

 
64

 
45

 
109

 
28

 
137

 
 
 
 
 
(24)%
 
(1)%
Other
 
17

 
7

 
24

 
(5
)
 
19

 
(4
)
 
15

 
50

 
7

 
57

 
31

 
88

 
 
 
 
 
**
 
**
 
 
$
(19
)
 
$
199

 
$
180

 
$
5

 
$
185

 
$
20

 
$
205

 
$
(208
)
 
$
(104
)
 
$
(312
)
 
$
(277
)
 
$
(589
)
 
 
 
 
 
**
 
**
* Quarterly amounts may not add to the year-to-date totals due to rounding of individual calculations.
** In excess of 100%


3

BRISTOL-MYERS SQUIBB COMPANY
RECONCILIATION OF GAAP AND NON-GAAP GROWTH DOLLARS AND PERCENTAGES EXCLUDING FOREIGN EXCHANGE IMPACT
FOR THE PERIOD ENDED SEPTEMBER 30, 2014
(Unaudited, dollars in millions)

QUARTER-TO-DATE
 
2014
 
2013
 
Growth $
 
Growth %
 
Favorable /
(Unfavorable)
FX Impact $ *
 
2014
Excluding FX
 
Favorable /
(Unfavorable)
FX Impact % *
 
Growth %
Excluding FX
Revenues
 
$
3,921

 
$
4,065

 
(144
)
 
(4)%
 
$
(18
)
 
$
3,939

 
—
 
(4)%
Gross profit
 
2,914

 
2,890

 
24

 
1%
 
N/A

 
N/A

 
N/A
 
N/A
Gross profit excluding specified items (a)
 
2,950

 
2,959

 
(9
)
 
—
 
N/A

 
N/A

 
N/A
 
N/A
          Gross profit excluding specified items as a % of revenues
 
75.2
%
 
72.8
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Marketing, selling and administrative
 
1,029

 
980

 
49

 
5%
 
5

 
1,034

 
1%
 
6%
Marketing, selling and administrative excluding specified items (a)
 
931

 
976

 
(45
)
 
(5)%
 
5

 
936

 
1%
 
(4)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Advertising and product promotion
 
171

 
194

 
(23
)
 
(12)%
 
2

 
173

 
1%
 
(11)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
         SG&A excluding specified items as a % of revenues
 
28.1
%
 
28.8
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Research and development
 
983

 
893

 
90

 
10%
 
8

 
991

 
1%
 
11%
Research and development excluding specified items (a)
 
918

 
893

 
25

 
3%
 
8

 
926

 
1%
 
4%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
         Research and development excluding specified items as a % of revenues
 
23.4
%
 
22.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
YEAR-TO-DATE
 
2014
 
2013
 
Growth $
 
Growth %
 
Favorable /
(Unfavorable)
FX Impact $ *
 
2014
Excluding FX
 
Favorable /
(Unfavorable)
FX Impact % *
 
Growth %
Excluding FX
Revenues
 
$
11,621

 
$
11,944

 
(323
)
 
(3)%
 
$
(32
)
 
$
11,653

 
—
 
(3)%
Gross profit
 
8,655

 
8,598

 
57

 
1%
 
N/A

 
N/A

 
N/A
 
N/A
Gross profit excluding specified items (a)
 
8,775

 
8,822

 
(47
)
 
(1)
 
N/A

 
N/A

 
N/A
 
N/A
          Gross profit excluding specified items as a % of revenues
 
75.5
%
 
73.9
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Marketing, selling and administrative
 
2,937

 
3,016

 
(79
)
 
(3)%
 
16

 
2,953

 
1%
 
(2)%
Marketing, selling and administrative excluding specified items (a)
 
2,833

 
3,010

 
(177
)
 
(6)%
 
16

 
2,849

 
1%
 
(5)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Advertising and product promotion
 
521

 
601

 
(80
)
 
(13)%
 
4

 
525

 
—
 
(13)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
         SG&A excluding specified items as a % of revenues
 
28.9
%
 
30.2
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Research and development
 
3,345

 
2,774

 
571

 
21%
 
6

 
3,351

 
—
 
21%
Research and development excluding specified items (a)
 
2,774

 
2,774

 
—

 
—
 
6

 
2,780

 
—
 
—
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
         Research and development excluding specified items as a % of revenues
 
23.9
%
 
23.2
%
 
 
 
 
 
 
 
 
 
 
 
 
(a) Refer to the Specified Items schedule for further details.
* Foreign exchange (FX) impact determined by the change in a line item's current and prior period results at a common exchange rate and comparing this change to the actual reported change from the same period. This difference is determined to be the FX impact.

4

BRISTOL-MYERS SQUIBB COMPANY
WORLDWIDE REVENUES FROM OPERATIONS BY PRODUCT
QUARTERLY REVENUES TREND ANALYSIS AND RECONCILIATION OF GAAP AND NON-GAAP GROWTH DOLLARS AND PERCENTAGES EXCLUDING FOREIGN EXCHANGE IMPACT
(Unaudited, dollars in millions)
 
 
2013
 
2014
 
Growth $
 
% Change
 
EX-FX
 
FX Impact
 
 
1st Qtr
 
2nd Qtr
 
6 Months
 
3rd Qtr
 
9 Months
 
4th Qtr
 
Year
 
1st Qtr
 
2nd Qtr
 
6 Months
 
3rd Qtr
 
9 Months
 
4th 
Qtr
 
Year
 
Qtr vs. Qtr
 
YTD vs. YTD
 
Qtr vs. Qtr
 
YTD vs. YTD
 
QTD EX-FX $
 
YTD EX-FX $
 
Qtr vs. Qtr %
 
YTD vs. YTD %
 
Qtr vs. Qtr
 
YTD vs. YTD
TOTAL
 
$
3,831

 
$
4,048

 
$
7,879

 
$
4,065

 
$
11,944

 
$
4,441

 
$
16,385

 
$
3,811

 
$
3,889

 
$
7,700

 
$
3,921

 
$
11,621

 
 
 
 
 
$
(144
)
 
$
(323
)
 
(4)%
 
(3)%
 
$
3,939

 
$
11,653

 
(4)%
 
(3)%
 
—
 
—
Virology(a)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Baraclude(b)
 
366

 
371

 
737

 
378

 
1,115

 
412

 
1,527

 
406

 
369

 
775

 
325

 
1,100

 
 
 
 
 
(53
)
 
(15
)
 
(14)%
 
(1)%
 
324

 
1,103

 
(14)%
 
(1)%
 
—
 
—
Hepatitis C Franchise(c)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
49

 
49

 
 
 
 
 
49

 
49

 
N/A
 
N/A
 
49

 
49

 
N/A
 
N/A
 
N/A
 
N/A
Reyataz
 
361

 
431

 
792

 
375

 
1,167

 
384

 
1,551

 
344

 
362

 
706

 
338

 
1,044

 
 
 
 
 
(37
)
 
(123
)
 
(10)%
 
(11)%
 
342

 
1,055

 
(9)%
 
(10)%
 
(1)%
 
(1)%
Sustiva Franchise(d)
 
387

 
411

 
798

 
389

 
1,187

 
427

 
1,614

 
319

 
361

 
680

 
357

 
1,037

 
 
 
 
 
(32
)
 
(150
)
 
(8)%
 
(13)%
 
356

 
1,029

 
(8)%
 
(13)%
 
—
 
1%
Oncology(a)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Erbitux
 
162

 
171

 
333

 
183

 
516

 
180

 
696

 
169

 
186

 
355

 
187

 
542

 
 
 
 
 
4

 
26

 
2%
 
5%
 
187

 
544

 
2%
 
5%
 
N/A
 
N/A
Opdivo(e)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
1

 
1

 
 
 
 
 
1

 
1

 
N/A
 
N/A
 
1

 
1

 
N/A
 
N/A
 
N/A
 
N/A
Sprycel
 
287

 
312

 
599

 
316

 
915

 
365

 
1,280

 
342

 
368

 
710

 
385

 
1,095

 
 
 
 
 
69

 
180

 
22%
 
20%
 
387

 
1,107

 
22%
 
21%
 
(1)%
 
(1)%
Yervoy
 
229

 
233

 
462

 
238

 
700

 
260

 
960

 
271

 
321

 
592

 
350

 
942

 
 
 
 
 
112

 
242

 
47%
 
35%
 
350

 
938

 
47%
 
34%
 
—
 
1%
Neuroscience(a)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Abilify(f)
 
522

 
563

 
1,085

 
569

 
1,654

 
635

 
2,289

 
540

 
555

 
1,095

 
449

 
1,544

 
 
 
 
 
(120
)
 
(110
)
 
(21)%
 
(7)%
 
450

 
1,539

 
(21)%
 
(7)%
 
—
 
—
Immunoscience(a)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Orencia(g)
 
320

 
352

 
672

 
375

 
1,047

 
397

 
1,444

 
363

 
402

 
765

 
444

 
1,209

 
 
 
 
 
69

 
162

 
18%
 
15%
 
448

 
1,222

 
19%
 
17%
 
(1)%
 
(1)%
Cardiovascular(a)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Eliquis
 
22

 
12

 
34

 
41

 
75

 
71

 
146

 
106

 
171

 
277

 
216

 
493

 
 
 
 
 
175

 
418

 
**
 
**
 
217

 
494

 
**
 
**
 
N/A
 
N/A
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diabetes Alliance(h)
 
358

 
438

 
796

 
432

 
1,228

 
455

 
1,683

 
179

 
27

 
206

 
42

 
248

 
 
 
 
 
(390
)
 
(980
)
 
(90)%
 
(80)%
 
43

 
248

 
(90)%
 
(80)%
 
—
 
—
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mature Products and All Other(i)
 
817

 
754

 
1,571

 
769

 
2,340

 
855

 
3,195

 
772

 
767

 
1,539

 
778

 
2,317

 
 
 
 
 
9

 
(23
)
 
1%
 
(1)%
 
785

 
2,324

 
2%
 
(1)%
 
(1)%
 
—
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Excluding Diabetes Alliance
 
3,473

 
3,610

 
7,083

 
3,633

 
10,716

 
3,986

 
14,702

 
3,632

 
3,862

 
7,494

 
3,879

 
11,373

 
 
 
 
 
246

 
657

 
7%
 
6%
 
3,896

 
11,405

 
7%
 
6%
 
—
 
—
**
In excess of 100%
(a)
Key products listed do not represent all products in the respective therapeutic areas.
(b)
Includes generic sales of entecavir from a U.S. supply and distribution agreement with Par Pharmaceutical Companies, Inc.
(c)
Includes Daklinza (daclatasvir) revenues of $38M for the three and nine months ended September 30, 2014, and includes Sunvepra (asunaprevir) revenues of $11M for the three and nine months ended September 30, 2014.
(d)
The Sustiva Franchise includes sales of Sustiva and revenue from sales of bulk efavirenz included in the combination therapy, Atripla. Includes alliance and other revenue of $309M and $328M for the three months ended September 30, 2014 and 2013, respectively, and $894M and $998M for the nine months ended September 30, 2014 and 2013, respectively.
(e)
Includes alliance and other revenue from our alliance with Ono Pharmaceutical Company Ltd. in Japan.
(f)
Includes alliance and other revenue of $410M and $464M for three months ended September 30, 2014 and 2013, respectively, and $1,350M and $1,313M for the nine months ended September 30, 2014 and 2013, respectively.
(g)
Includes Orencia SubQ revenues of $192M and $118M for three months ended September 30, 2014 and 2013, respectively, and $488M and $302M for the nine months ended September 30, 2014 and 2013, respectively.
(h)
The nine months ended September 30, 2014 includes pre-divestiture revenues of Bydureon, Byetta, Farxiga/Forxiga/Xigduo, Onglyza/Kombiglyze, Symlin and Myalept of $153M and post-divestiture revenues of $95M.
(i)
Represents all other products, including those which have lost exclusivity in major markets, over the counter brands and royalty-related revenue. Includes Plavix revenues of $44M and $42M for the three months ended September 30, 2014 and 2013, respectively, and $137M and $177M for the nine months ended September 30, 2014 and 2013, respectively. Additionally, includes Avapro/Avalide revenues of $56M and $71M for the three months ended September 30, 2014 and 2013, respectively, and $171M and $173M for the nine months ended September 30, 2014 and 2013, respectively.

5

BRISTOL-MYERS SQUIBB COMPANY
DOMESTIC REVENUES FROM OPERATIONS BY PRODUCT
QUARTERLY REVENUES TREND ANALYSIS
(Unaudited, dollars in millions)
 
 
2013
 
2014
 
% Change
 
 
1st Qtr
 
2nd Qtr
 
6 Months
 
3rd Qtr
 
9 Months
 
4th Qtr
 
Year
 
1st Qtr
 
2nd Qtr
 
6 Months
 
3rd Qtr
 
9 Months
 
4th Qtr
 
Year
 
Qtr vs. Qtr
 
YTD vs. YTD
TOTAL(a)
 
$
1,971

 
$
2,045

 
$
4,016

 
$
2,037

 
$
6,053

 
$
2,265

 
$
8,318

 
$
1,765

 
$
1,901

 
$
3,666

 
$
1,968

 
$
5,634

 
 
 
 
 
(3)%
 
(7)%
Virology
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Baraclude(b)
 
68

 
73

 
141

 
67

 
208

 
81

 
289

 
70

 
84

 
154

 
40

 
194

 
 
 
 
 
(40)%
 
(7)%
Reyataz
 
193

 
200

 
393

 
189

 
582

 
187

 
769

 
176

 
168

 
344

 
169

 
513

 
 
 
 
 
(11)%
 
(12)%
Sustiva Franchise(c)
 
251

 
275

 
526

 
259

 
785

 
307

 
1,092

 
228

 
266

 
494

 
284

 
778

 
 
 
 
 
10%
 
(1)%
Oncology
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Erbitux
 
158

 
168

 
326

 
180

 
506

 
176

 
682

 
158

 
178

 
336

 
175

 
511

 
 
 
 
 
(3)%
 
1%
Sprycel
 
115

 
135

 
250

 
134

 
384

 
157

 
541

 
145

 
163

 
308

 
179

 
487

 
 
 
 
 
34%
 
27%
Yervoy(d)
 
159

 
140

 
299

 
130

 
429

 
148

 
577

 
146

 
173

 
319

 
191

 
510

 
 
 
 
 
47%
 
19%
Neuroscience
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Abilify
 
328

 
378

 
706

 
378

 
1,084

 
435

 
1,519

 
325

 
417

 
742

 
407

 
1,149

 
 
 
 
 
8%
 
6%
Immunoscience
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Orencia(e)
 
214

 
238

 
452

 
246

 
698

 
256

 
954

 
229

 
254

 
483

 
292

 
775

 
 
 
 
 
19%
 
11%
Cardiovascular
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Eliquis
 
17

 
5

 
22

 
27

 
49

 
48

 
97

 
61

 
94

 
155

 
113

 
268

 
 
 
 
 
**
 
**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diabetes Alliance(f)
 
292

 
320

 
612

 
308

 
920

 
322

 
1,242

 
114

 
—

 
114

 
—

 
114

 
 
 
 
 
(100)%
 
(88)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mature Products and All Other(g)
 
176

 
113

 
289

 
119

 
408

 
148

 
556

 
113

 
104

 
217

 
118

 
335

 
 
 
 
 
(1)%
 
(18)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Excluding Diabetes Alliance
 
1,679

 
1,725

 
3,404

 
1,729

 
5,133

 
1,943

 
7,076

 
1,651

 
1,901

 
3,552

 
1,968

 
5,520

 
 
 
 
 
14%
 
8%
**
 In excess of 100%
(a)
Domestic revenues include United States and Puerto Rico.
(b)
Includes generic sales of entecavir from a U.S. supply and distribution agreement with Par Pharmaceutical Companies, Inc.
(c)
The Sustiva Franchise includes sales of Sustiva, as well as revenue from sales of bulk efavirenz included in the combination therapy, Atripla.
(d)
Nine months ended September 30, 2013 includes $25 million of net sales that were previously deferred until sufficient historical experience to estimate sales returns was developed. The following table provides a reconciliation of the net impact of reversal of previously deferred net sales.
 
 
2014
 
2013
 
% Change
 
 
3rd Qtr
9 Months
 
3rd Qtr
9 Months
 
Qtr vs. Qtr
YTD vs. YTD
 
 
 
 
 
 
 
 
 
 
Yervoy Revenues As Reported
 
191
510
 
130
429
 
47%
19%
Reversal of deferred revenues, net
 
—
—
 
—
(25)
 
—
(100)%
Yervoy Revenues - Adjusted
 
191
510
 
130
404
 
47%
26%
 
 
 
 
 
 
 
 
 
 
(e)
Includes Orencia SubQ revenues of $129M and $91M for three months ended September 30, 2014 and 2013, respectively, and $327M and $244M for the nine months ended September 30, 2014 and 2013, respectively.
(f)
Includes Bydureon, Byetta, Farxiga, Onglyza/Kombiglyze and Symlin and Myalept.
(g)
Represents all other products sold in the U.S., including those which have lost exclusivity in major markets.

6

BRISTOL-MYERS SQUIBB COMPANY
INTERNATIONAL REVENUES FROM OPERATIONS BY PRODUCT
QUARTERLY REVENUES TREND ANALYSIS
(Unaudited, dollars in millions)
 
 
2013
 
2014
 
% Change
 
FX Impact
 
 
1st Qtr
 
2nd Qtr
 
6 Months
 
3rd Qtr
 
9 Months
 
4th Qtr
 
Year
 
1st Qtr
 
2nd Qtr
 
6 Months
 
3rd Qtr
 
9 Months
 
4th Qtr
 
Year
 
Qtr vs. Qtr
 
YTD vs. YTD
 
Qtr vs. Qtr
 
YTD vs. YTD
TOTAL
 
$
1,860

 
$
2,003

 
$
3,863

 
$
2,028

 
$
5,891

 
$
2,176

 
$
8,067

 
$
2,046

 
$
1,988

 
$
4,034

 
$
1,953

 
$
5,987

 
 
 
 
 
(4)%
 
2%
 
(1)%
 
—
Virology
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Baraclude
 
298

 
298

 
596

 
311

 
907

 
331

 
1,238

 
336

 
285

 
621

 
285

 
906

 
 
 
 
 
(8)%
 
—
 
—
 
—
Hepatitis C Franchise(a)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
49

 
49

 
 
 
 
 
N/A
 
N/A
 
N/A
 
N/A
Reyataz
 
168

 
231

 
399

 
186

 
585

 
197

 
782

 
168

 
194

 
362

 
169

 
531

 
 
 
 
 
(9)%
 
(9)%
 
(2)%
 
(2)%
Sustiva Franchise(b)
 
136

 
136

 
272

 
130

 
402

 
120

 
522

 
91

 
95

 
186

 
73

 
259

 
 
 
 
 
(44)%
 
(36)%
 
—
 
2%
Oncology
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Erbitux
 
4

 
3

 
7

 
3

 
10

 
4

 
14

 
11

 
8

 
19

 
12

 
31

 
 
 
 
 
**
 
**
 
N/A
 
N/A
Opdivo(c)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
1

 
1

 
 
 
 
 
N/A
 
N/A
 
N/A
 
N/A
Sprycel
 
172

 
177

 
349

 
182

 
531

 
208

 
739

 
197

 
205

 
402

 
206

 
608

 
 
 
 
 
13%
 
15%
 
(2)%
 
(2)%
Yervoy
 
70

 
93

 
163

 
108

 
271

 
112

 
383

 
125

 
148

 
273

 
159

 
432

 
 
 
 
 
47%
 
59%
 
1%
 
1%
Neuroscience
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Abilify(d)
 
194

 
185

 
379

 
191

 
570

 
200

 
770

 
215

 
138

 
353

 
42

 
395

 
 
 
 
 
(78)%
 
(31)%
 
(1)%
 
1%
Immunoscience
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Orencia
 
106

 
114

 
220

 
129

 
349

 
141

 
490

 
134

 
148

 
282

 
152

 
434

 
 
 
 
 
18%
 
24%
 
(2)%
 
(4)%
Cardiovascular
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Eliquis
 
5

 
7

 
12

 
14

 
26

 
23

 
49

 
45

 
77

 
122

 
103

 
225

 
 
 
 
 
**
 
**
 
N/A
 
N/A
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diabetes Alliance(e)
 
66

 
118

 
184

 
124

 
308

 
133

 
441

 
65

 
27

 
92

 
42

 
134

 
 
 
 
 
(66)%
 
(56)%
 
—
 
—
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mature Products and All Other(f)
 
641

 
641

 
1,282

 
650

 
1,932

 
707

 
2,639

 
659

 
663

 
1,322

 
660

 
1,982

 
 
 
 
 
2%
 
3%
 
(1)%
 
—
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Excluding Diabetes Alliance
 
1,794

 
1,885

 
3,679

 
1,904

 
5,583

 
2,043

 
7,626

 
1,981

 
1,961

 
3,942

 
1,911

 
5,853

 
 
 
 
 
—
 
5%
 
(1)%
 
(1)%

**
In excess of 100%
(a)
Includes Daklinza (daclatasvir) revenues of $38M for the three and nine months ended September 30, 2014, and includes Sunvepra (asunaprevir) revenues of $11M for the three and nine months ended September 30, 2014.
(b)
The Sustiva Franchise includes sales of Sustiva and revenue from sales of bulk efavirenz included in the combination therapy, Atripla.
(c)
Includes alliance and other revenue from our alliance with Ono Pharmaceutical Company Ltd. in Japan.
(d)
Includes revenue from the co-promotional agreement with Otsuka Pharmaceutical Co., Ltd.
(e)
Includes Bydureon, Byetta, Forxiga/Xigduo, Onglyza/Kombiglyze, Symlin and Myalept.
(f)
Represents all other products, including those which have lost exclusivity in major markets, over the counter brands and royalty-related revenue.



7

BRISTOL-MYERS SQUIBB COMPANY
RECONCILIATION OF CERTAIN NON-GAAP LINE ITEMS TO CERTAIN GAAP LINE ITEMS
(Unaudited, dollars in millions)
 
 
2013
 
2014
 
 
1st Qtr
 
2nd Qtr
 
6 Months
 
3rd Qtr
 
9 Months
 
4th Qtr
 
Year
 
1st Qtr
 
2nd Qtr
 
6 Months
 
3rd Qtr
 
9 Months
 
4th Qtr
 
Year
Gross Profit
 
$
2,768

 
$
2,940

 
$
5,708

 
$
2,890

 
$
8,598

 
$
3,168

 
$
11,766

 
$
2,843

 
$
2,898

 
$
5,741

 
$
2,914

 
$
8,655

 
 
 
 
Specified items (a)
 
85

 
70

 
155

 
69

 
224

 
102

 
326

 
45

 
39

 
84

 
36

 
120

 
 
 
 
Gross profit excluding specified items
 
2,853

 
3,010

 
5,863

 
2,959

 
8,822

 
3,270

 
12,092

 
2,888

 
2,937

 
5,825

 
2,950

 
8,775

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Marketing, selling and administrative
 
994

 
1,042

 
2,036

 
980

 
3,016

 
1,068

 
4,084

 
957

 
951

 
1,908

 
1,029

 
2,937

 
 
 
 
Specified items (a)
 
(1
)
 
(1
)
 
(2
)
 
(4
)
 
(6
)
 
(10
)
 
(16
)
 
(3
)
 
(3
)
 
(6
)
 
(98
)
 
(104
)
 
 
 
 
Marketing, selling and administrative excluding specified items
 
993

 
1,041

 
2,034

 
976

 
3,010

 
1,058

 
4,068

 
954

 
948

 
1,902

 
931

 
2,833

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Research and development
 
930

 
951

 
1,881

 
893

 
2,774

 
957

 
3,731

 
946

 
1,416

 
2,362

 
983

 
3,345

 
 
 
 
Specified items (a)
 
—

 
—

 
—

 
—

 
—

 
(16
)
 
(16
)
 
(48
)
 
(458
)
 
(506
)
 
(65
)
 
(571
)
 
 
 
 
Research and development excluding specified items
 
930

 
951

 
1,881

 
893

 
2,774

 
941

 
3,715

 
898

 
958

 
1,856

 
918

 
2,774

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other (income)/expense
 
(19
)
 
199

 
180

 
5

 
185

 
20

 
205

 
(208
)
 
(104
)
 
(312
)
 
(277
)
 
(589
)
 
 
 
 
Specified items (a)
 
(19
)
 
(239
)
 
(258
)
 
(43
)
 
(301
)
 
(39
)
 
(340
)
 
88

 
(67
)
 
21

 
203

 
224

 
 
 
 
Other (income)/expense excluding specified items
 
(38
)
 
(40
)
 
(78
)
 
(38
)
 
(116
)
 
(19
)
 
(135
)
 
(120
)
 
(171
)
 
(291
)
 
(74
)
 
(365
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effective Tax Rate
 
7.6
%
 
—

 
4.2
%
 
15.4
%
 
8.8
%
 
15.4
%
 
10.8
%
 
5.0
%
 
25.4
 %
 
11.4
%
 
27.4
 %
 
18.0
%
 
 
 
 
Specified items (a)
 
3.4
%
 
13.8
%
 
8.3
%
 
2.4
%
 
5.6
%
 
2.5
%
 
4.6
%
 
18.0
%
 
(4.1
)%
 
10.7
%
 
(3.2
)%
 
4.8
%
 
 
 
 
Effective Tax Rate excluding specified items
 
11.0
%
 
13.8
%
 
12.5
%
 
17.8
%
 
14.4
%
 
17.9
%
 
15.4
%
 
23.0
%
 
21.3
 %
 
22.1
%
 
24.2
 %
 
22.8
%
 
 
 
 

(a) Refer to the Specified Items schedule for further details. Effective tax rate on the Specified Items represents the difference between the GAAP and Non-GAAP effective tax rate.


8

BRISTOL-MYERS SQUIBB COMPANY
SPECIFIED ITEMS
(Unaudited, dollars in millions)
 
 
2013
 
2014
 
 
1st Qtr
 
2nd Qtr
 
6 Months
 
3rd Qtr
 
9 Months
 
4th Qtr
 
Year
 
1st Qtr
 
2nd Qtr
 
6 Months
 
3rd Qtr
 
9 Months
 
4th Qtr
 
Year
Accelerated depreciation, asset impairment and other shutdown costs
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
36

 
$
36

 
$
45

 
$
39

 
$
84

 
$
36

 
$
120

 
 
 
 
Amortization of acquired Amylin intangible assets
 
138

 
137

 
275

 
137

 
412

 
137

 
549

 
—

 
—

 
—

 
—

 
—

 
 
 
 
Amortization of Amylin alliance proceeds
 
(67
)
 
(67
)
 
(134
)
 
(68
)
 
(202
)
 
(71
)
 
(273
)
 
—

 
—

 
—

 
—

 
—

 
 
 
 
Amortization of Amylin inventory adjustment
 
14

 
—

 
14

 
—

 
14

 
—

 
14

 
—

 
—

 
—

 
—

 
—

 
 
 
 
Cost of products sold
 
85

 
70

 
155

 
69

 
224

 
102

 
326

 
45

 
39

 
84

 
36

 
120

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Additional year of Branded Prescription Drug Fee
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
96

 
96

 
 
 
 
Process standardization implementation costs
 
1

 
1

 
2

 
4

 
6

 
10

 
16

 
3

 
3

 
6

 
2

 
8

 
 
 
 
Marketing, selling and administrative
 
1

 
1

 
2

 
4

 
6

 
10

 
16

 
3

 
3

 
6

 
98

 
104

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Upfront, milestone and other payments
 
—

 
—

 
—

 
—

 
—

 
16

 
16

 
15

 
148

 
163

 
65

 
228

 
 
 
 
IPRD impairments
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
33

 
310

 
343

 
—

 
343

 
 
 
 
Research and development
 
—

 
—

 
—

 
—

 
—

 
16

 
16

 
48

 
458

 
506

 
65

 
571

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for restructuring
 
33

 
173

 
206

 
6

 
212

 
14

 
226

 
21

 
16

 
37

 
35

 
72

 
 
 
 
Gain on sale of product lines, businesses and assets
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(259
)
 
12

 
(247
)
 
(315
)
 
(562
)
 
 
 
 
Pension curtailments, settlements and special termination benefits
 
—

 
99

 
99

 
37

 
136

 
25

 
161

 
64

 
45

 
109

 
28

 
137

 
 
 
 
Acquisition and alliance related items(a)
 
—

 
(10
)
 
(10
)
 
—

 
(10
)
 
—

 
(10
)
 
16

 
17

 
33

 
39

 
72

 
 
 
 
Litigation charges/(recoveries)
 
—

 
(23
)
 
(23
)
 
—

 
(23
)
 
—

 
(23
)
 
25

 
(23
)
 
2

 
10

 
12

 
 
 
 
Loss on debt redemption
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
45

 
—

 
45

 
—

 
45

 
 
 
 
Upfront, milestone and other licensing receipts
 
(14
)
 
—

 
(14
)
 
—

 
(14
)
 
—

 
(14
)
 
—

 
—

 
—

 
—

 
—

 
 
 
 
Other (income)/expense
 
19

 
239

 
258

 
43

 
301

 
39

 
340

 
(88
)
 
67

 
(21
)
 
(203
)
 
(224
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Increase/(decrease) to pretax income
 
105

 
310

 
415

 
116

 
531

 
167

 
698

 
8

 
567

 
575

 
(4
)
 
571

 
 
 
 
Income tax on items above
 
(35
)
 
(116
)
 
(151
)
 
(40
)
 
(191
)
 
(51
)
 
(242
)
 
(179
)
 
(102
)
 
(281
)
 
33

 
(248
)
 
 
 
 
Increase/(decrease) to net earnings
 
$
70

 
$
194

 
$
264

 
$
76

 
$
340

 
$
116

 
$
456

 
$
(171
)
 
$
465

 
$
294

 
$
29

 
$
323

 
 
 
 
(a) Includes $16 million of additional year of Branded Prescription Drug Fee.


9

BRISTOL-MYERS SQUIBB COMPANY
SELECTED BALANCE SHEET INFORMATION
(Unaudited, dollars in millions)
 
 
 
March 31,
2013
 
June 30,
2013
 
September 30,
2013
 
December 31,
2013
 
March 31,
2014
 
June 30,
2014
 
September 30,
2014
 
December 31,
2014
Cash and cash equivalents
 
$
1,355

 
$
1,821

 
$
1,771

 
$
3,586

 
$
5,225

 
$
4,282

 
$
4,851

 
 
Marketable securities - current
 
1,178

 
978

 
951

 
939

 
1,834

 
2,893

 
2,370

 
 
Marketable securities - long term
 
3,242

 
3,223

 
3,623

 
3,747

 
3,558

 
3,876

 
4,328

 
 
     Cash, cash equivalents and marketable securities
 
5,775

 
6,022

 
6,345

 
8,272

 
10,617

 
11,051

 
11,549

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Short-term borrowings and current portion of long-term debt
 
(1,372
)
 
(764
)
 
(680
)
 
(359
)
 
(281
)
 
(365
)
 
(401
)
 
 
Long-term debt
 
(6,522
)
 
(6,442
)
 
(6,532
)
 
(7,981
)
 
(7,367
)
 
(7,372
)
 
(7,267
)
 
 
     Net cash/(debt) position
 
$
(2,119
)
 
$
(1,184
)
 
$
(867
)
 
$
(68
)
 
$
2,969

 
$
3,314

 
$
3,881

 
 


10

BRISTOL-MYERS SQUIBB COMPANY
2014 FULL YEAR PROJECTED DILUTED EPS FROM OPERATIONS
EXCLUDING PROJECTED SPECIFIED ITEMS

 
Full Year 2014
Projected Diluted Earnings Attributable to Shareholders per Common Share - GAAP
 $1.15 to $1.25

Projected Specified Items:
 
Downsizing and streamlining of worldwide operations
0.15

Upfront and milestone payments, net
0.12

Gain on diabetes business divestiture and other related impacts
(0.27
)
Pension settlements
0.33

Impairment Charges
0.13

Additional year of Branded Prescription Drug Fee
0.07

Other
0.02

Total
0.55

 
 
Projected Diluted Earnings Attributable to Shareholders per Common Share - Non-GAAP
 $1.70 to $1.80

Gross margin as a percentage of revenues on a GAAP and non-GAAP basis for the nine months ended September 30, 2014 was 74.5% and 75.5%, respectively. On a non-GAAP basis, the Company projects gross margin as a percentage of revenues for the full year 2014 between 75% and 76%. There is no reliable comparable GAAP measure for this forward-looking information on gross margin. See "—Reconciliation of GAAP and non-GAAP Growth Dollars and Percentages Excluding Foreign Exchange Impact".
 
 
 
 
 
 
 
 
 
 
Research and development expenses on a GAAP and non-GAAP basis for the nine months ended September 30, 2014 were $3.3 billion and $2.8 billion, respectively. On a non-GAAP basis, the Company projects research and development expense for the full year 2014 to grow in the mid single digit range compared to 2013. It is estimated that 30% to 45% of the research and development expenses in 2014 will be incurred on late-stage development programs. There is no reliable comparable GAAP measure for this forward-looking information on research and development. See "—Reconciliation of Certain non-GAAP Line Items to Certain GAAP Line Items".
 
 
 
 
 
 
 
 
 
 
Marketing, selling and administrative expenses on a GAAP and non-GAAP basis for the nine months ended September 30, 2014 were $2.9 billion and $2.8 billion, respectively. On a GAAP basis, expenses for the nine months ended September 30, 2014 included specified items of $104 million. On a non-GAAP basis, the Company projects marketing, selling and administrative expenses for the full year 2014 to decrease in the mid single digit range compared to 2013. There is no reliable comparable GAAP measure for this forward-looking information on marketing, selling and administrative expense. See "—Reconciliation of Certain non-GAAP Line Items to Certain GAAP Line Items".
 
 
 
 
 
 
 
 
 
 
The effective tax rate on a GAAP basis for the nine months ended September 30, 2014 was 18.0%. On a non-GAAP basis, for the nine months ended September 30, 2014 the effective tax rate was 22.8%. On a non-GAAP basis, the Company projects an annual effective tax rate of between 19% and 20%. There is no reliable comparable GAAP measure for this forward-looking information on the tax rate. See "—Reconciliation of Certain non-GAAP Line Items to Certain GAAP Line Items".
 
 
 
 
 
 
 
 
 
 
The GAAP financial results for the full year 2014 will include specified items, including gains on divestitures, expected charges associated with downsizing and streamlining worldwide operations, in-process research and development (IPRD) and asset impairments, upfront and milestone payments, restructuring, charges and recoveries relating to significant legal proceedings, pension related items and additional charges related to the Branded Prescription Drug Fee.  The GAAP financial results for the full year 2014 could also include other specified items that have not yet been identified and quantified, including any gains or losses from acquisitions or divestitures, additional upfront, milestone and other licensing payments, charges for IPRD and licensed asset impairments, charges and recoveries relating to significant legal proceedings, restructuring activities and significant tax events. For a fuller discussion of certain litigation and other matters that could impact full year GAAP results, as well as the use of non-GAAP financial information, see Bristol-Myers Squibb Reports Third Quarter 2014 Financial Results, October 24, 2014 including “2014 Financial Guidance” and “Use of non-GAAP Financial Information” therein. 

 
 
 
 
 
 
 
 
 
 


11