RESTRUCTURING

12 Months Ended

Dec. 31, 2021

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 (5%), Marketing, selling and administrative expenses (65%) and Research and development expenses (30%). Charges of approximately $3.0 billion are expected to be incurred. The majority of the charges are expected to be incurred through 2022. Cumulative charges of approximately $2.6 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 $2.7 billion. Employee workforce reductions were approximately 405 in 2021, 1,565 in 2020 and 125 in 2019.

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 $117 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:


	Year Ended December 31,
Dollars in Millions	2021		2020		2019
Celgene Acquisition Plan	$	673	$	1,244	$	674
MyoKardia Acquisition Plan	78		39		—
Company Transformation	—		127		305
Total charges	$	751	$	1,410	$	979

Employee termination costs	$	159	$	457	$	273
Other termination costs	10		73		28
Provision for restructuring	169		530		301
Integration expenses	564		717		415
Accelerated depreciation	2		53		133
Asset impairments	24		103		130
Other shutdown costs, net	(8)		7		—
Total charges	$	751	$	1,410	$	979

Cost of products sold	$	24	$	32	$	180
Marketing, selling and administrative	3		10		1
Research and development	—		113		82
Other (income)/expense, net	724		1,255		716
Total charges	$	751	$	1,410	$	979

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


	Year Ended December 31,
Dollars in Millions	2021		2020		2019
Liability at December 31	$	148	$	100	$	99
Cease-use liability reclassification	—		—		(3)
Liability at January 1	148		100		96
Provision for restructuring(a)	156		460		156
Foreign currency translation and other	(4)		6		(1)
Payments	(199)		(418)		(151)
Liability at December 31	$	101	$	148	$	100

(a) Includes reductions to the liability resulting from changes in estimates of $19 million in 2021, $10 million in 2020 and $4 million in 2019. Excludes $13 million in 2021, $70 million in 2020 and $145 million in 2019 of accelerated stock-based compensation relating to the Celgene Acquisition Plan.