RESTRUCTURING

9 Months Ended

Sep. 30, 2023

RESTRUCTURING

2023 Restructuring Plan

In 2023, BMS commenced a restructuring plan to accelerate the delivery of medicines to patients by evolving and streamlining its enterprise operating model in key areas, such as R&D, manufacturing, commercial and other functions, to ensure its operating model supports and is appropriately aligned with the Company’s strategy to invest in key priorities. These changes primarily include (i) transforming R&D operations to accelerate pipeline delivery (ii) enhancing our commercial operating model, and (iii) establishing a more responsive manufacturing network and expansion of cell therapy manufacturing capabilities. Charges of approximately $1.0 billion are expected to be incurred through 2025, consisting primarily of employee termination costs and to a lesser extent site exit costs, including impairment and accelerated depreciation of property, plant and equipment.

Celgene and Other Acquisition Plans

Restructuring and integration plans were initiated to realize expected cost synergies resulting from cost savings and avoidance from the acquisition of Celgene (2019), MyoKardia (2020) and Turning Point (2022). As part of these plans, the Company expects to incur charges of approximately $3.8 billion. Cumulative charges of approximately $3.5 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 related to the acquisition of Celgene are primarily related to IT system integration which are expected to be incurred through 2024.

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	2023		2022		2023		2022
2023 Restructuring Plan	$	149	$	—	$	380	$	—
Celgene and Other Acquisition Plans	131		131		269		409
Total charges	$	280	$	131	$	649	$	409

Employee termination costs	$	135	$	16	$	309	$	57
Other termination costs	6		1		12		3
Provision for restructuring	141		17		321		60
Integration expenses	54		114		180		343
Accelerated depreciation	15		—		28		6
Asset impairments (a)	70		—		120		—

Total charges	$	280	$	131	$	649	$	409

Cost of products sold	$	16	$	—	$	53	$	—
Marketing, selling and administrative	65		—		85		6
Research and development	4		—		10		—
Other (income)/expense, net	195		131		501		403
Total charges	$	280	$	131	$	649	$	409

(a) Includes $65 million impairment charge for a facility lease that commenced during the three months ended September 2023.

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


	Nine Months Ended September 30,
Dollars in millions	2023		2022
Beginning balance	$	47	$	101
Provision for restructuring(a)	321		60
Foreign currency translation and other	(3)		(10)
Payments	(142)		(106)
Ending balance	$	223	$	45

(a) Includes a reduction of the liability resulting from changes in estimates of $5 million and $6 million for the nine months ended September 30, 2023 and 2022, respectively.