RESTRUCTURING

3 Months Ended

Mar. 31, 2023

Restructuring Charges [Abstract]

Restructuring

RESTRUCTURING

Celgene Acquisition Plan

As part of the Celgene Acquisition Plan, the Company expects to incur charges of approximately $3.5 billion, including cash outlays of approximately $3.1 billion. Cumulative charges of approximately $3.1 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. The remaining charges are primarily related to IT system integration which are expected to be incurred through 2024.

Other Restructuring

Restructuring and integration plans were initiated to realize expected cost synergies resulting from cost savings and avoidance from the Turning Point acquisition in 2022 and the MyoKardia acquisition in 2020. Charges of approximately $250 million are expected to be incurred through the end of 2023 and consist of integration planning and execution expenses, employee termination benefit costs and other costs. Cumulative charges of approximately $180 million have been recognized for these actions to date. In the first quarter of 2023, certain restructuring activities occurred resulting in employee termination costs of $61 million, which are primarily attributed to changes in our operating model to accelerate the delivery of medicines to patients.

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

	Three Months Ended March 31,
Dollars in millions	2023		2022
Celgene Acquisition Plan	$	57	$	127
Other Restructuring	78		3
Total charges	$	135	$	130
Employee termination costs	$	65	$	22
Other termination costs	2		1
Provision for restructuring	67		23
Integration expenses	67		105
Accelerated depreciation	1		2
Total charges	$	135	$	130
Cost of products sold	$	1	$	—
Marketing, selling and administrative	—		2
Other (income)/expense, net	134		128
Total charges	$	135	$	130

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

	Three Months Ended March 31,
Dollars in millions	2023		2022
Beginning balance	$	47	$	101
Provision for restructuring(a)	67		23
Foreign currency translation and other	2		(1)
Payments	(17)		(21)
Ending balance	$	99	$	102

(a)    Includes a reduction of the liability resulting from changes in estimates of $3 million and $9 million for the three months ended March 31, 2023 and 2022, respectively.