RESTRUCTURING

9 Months Ended

Sep. 30, 2021

Restructuring and Related Activities Disclosure [Text Block]

RESTRUCTURING

Celgene Acquisition Plan

In 2019, a restructuring and integration plan was implemented as an initiative to realize sustainable run rate synergies resulting from cost savings and avoidance from the Celgene acquisition that are currently expected to be approximately $3.0 billion. The synergies are expected to be realized in Cost of products sold (10%), Marketing, selling and administrative expenses (55%) and Research and development expenses (35%). Charges of approximately $3.0 billion are expected to be incurred through 2022. Cumulative charges of approximately $2.4 billion have been recognized to date including integration planning and execution expenses, employee termination benefit costs and accelerated stock-based compensation, contract termination costs and other shutdown costs associated with site exits. Cash outlays in connection with these actions are expected to be approximately $2.5 billion. Employee workforce reductions were approximately 320 and 1,400 for the nine months ended September 30, 2021 and 2020, respectively.

MyoKardia Acquisition Plan

In 2020, a restructuring and integration plan was initiated to realize expected cost synergies resulting from cost savings and avoidance from the MyoKardia acquisition. Charges of approximately $150 million are expected to be incurred through 2022, and consist of integration planning and execution expenses, employee termination benefit costs and other costs. Cumulative charges of approximately $113 million have been recognized for these actions to date.

Company Transformation

In 2016, a restructuring plan was announced to evolve and streamline BMS’s operating model. Cumulative charges of approximately $1.5 billion were recognized for these actions since the announcement. Actions under the plan were completed as of December 31, 2020.

The following provides the charges related to restructuring initiatives by type of cost:


	Three Months Ended September 30,				Nine Months Ended September 30,
Dollars in Millions	2021		2020		2021		2020
Celgene Acquisition Plan	$	153	$	373	$	526	$	1,014
MyoKardia Acquisition Plan	18		—		74		—
Company Transformation	—		10		—		115
Total charges	$	171	$	383	$	600	$	1,129

Employee termination costs	$	24	$	133	$	143	$	389
Other termination costs	3		43		7		62
Provision for restructuring	27		176		150		451
Integration expenses	141		195		434		535
Accelerated depreciation	—		7		—		48
Asset impairments	—		5		24		86
Other shutdown costs, net	3		—		(8)		9
Total charges	$	171	$	383	$	600	$	1,129

Cost of products sold	$	—	$	3	$	24	$	30
Marketing, selling and administrative	1		6		1		7
Research and development	—		3		—		98
Other (income)/expense, net	170		371		575		994
Total charges	$	171	$	383	$	600	$	1,129

The following summarizes the charges and spending related to restructuring plan activities:


	Nine Months Ended September 30,
Dollars in Millions	2021		2020
Liability at December 31	$	148	$	100
Provision for restructuring(a)	138		387
Foreign currency translation and other	(4)		2
Payments	(170)		(295)
Liability at September 30	$	112	$	194

(a) Includes a reduction of the liability resulting from changes in estimates of $17 million and $7 million for the nine months ended September 30, 2021 and 2020, respectively. Excludes $12 million and $64 million for the nine months ended September 30, 2021 and 2020, respectively, of accelerated stock-based compensation relating to the Celgene Acquisition Plan.