EX-99.2 4 dex992.htm CERTAIN SUPPLEMENTAL INFORMATION Certain Supplemental Information

Exhibit 99.2

 

BRISTOL-MYERS SQUIBB COMPANY

 

RESTATEMENT

 

NET SALES RECONCILIATION

(dollars in millions)

 

     Full Year
  
     2003
    2002
     2001
  

Net Sales, 2003 as previously disclosed; 2002 and 2001 as previously reported

    $ 20,671    $ 18,119     $ 17,987  

Adjustments

                        

WIC rebates accrual

      88      (4 )     (1 )

Goods in transit

      99      (9 )     55  

Other net sales adjustments

      11      14       3  

Reclassification from Other expense, net

      25      (14 )     —    
    
  
 

Net Sales, 2003 as reported; 2002 and 2001 as restated

    $ 20,894    $ 18,106     $ 18,044  
    
  
 

BRISTOL-MYERS SQUIBB COMPANY

 

RESTATEMENT RECONCILIATION

 

EARNINGS FROM CONTINUING OPERATIONS

 

INCLUDING SPECIFIED ITEMS

(dollars in millions, except earnings per share)

 

     Full Year
  
     2003
     2002
     2001
  

Earnings from Continuing Operations, 2003 as previously disclosed; 2002 and 2001 as previously reported

    $ 2,952     $ 2,034     $ 2,043  
    
 
 

Diluted Earnings per Common Share from Continuing Operations, 2003 as previously disclosed; 2002 and 2001 as previously reported

    $ 1.51     $ 1.05     $ 1.04  
    
 
 

Adjustments

                         

WIC rebates accrual

      88       (4 )     (1 )

Goods in transit

      73       (5 )     46  

Other net sales adjustments

      (20 )     14       5  

International pensions and employee benefit plan accrual

      77       —         4  

Intercompany accounts

      29       —         —    

Other marketing, selling and administrative adjustments

      (12 )     8       3  

Intercompany foreign exchange gains and losses

      8       (28 )     (90 )

Other restatement items

      (20 )     8       1  

Post closing litigation accrual

      (25 )                

Adjustments to minority interest, net of taxes

      49       (6 )     (4 )

Provision for income taxes

      (93 )     46       (136 )
    
 
 

Earnings from Continuing Operations, 2003 as reported; 2002 and 2001 as restated

    $ 3,106     $ 2,067     $ 1,871  
    
 
 

Diluted Earnings per Common Share from Continuing Operations, 2003 as reported; 2002 and 2001 as restated

    $ 1.59     $ 1.06     $ 0.95  
    
 
 

BRISTOL-MYERS SQUIBB COMPANY

 

RESTATEMENT RECONCILIATION

(dollars in millions)

 

    Errors recorded
in 2003 and
disclosed in
January 29,
2004 Earnings
Release
     Errors related to
prior years
which did not
impact 2003 net
earnings and
were not
disclosed in
January 29, 2004
Earnings
Release
   Adjustments
to errors
recorded in
2003 and
disclosed in
January 29,
2004
Earnings
Release
     Total
Restatement
adjustments
for the year
ended
December 31,
2003
     Post Earnings
Release
adjustment to
2003 earnings
from
continuing
operations
     Total restatement
and post
Earnings Release
adjustments to
2003 earnings
     Restatement
adjustment
related to
2002
     Restatement
adjustment
related to
2001
     Restatement
adjustments
related to
Retained
Earnings as
of January 31,
2001
  

WIC rebates accrual

   $ 65     $ —     $ 23     $ 88     $ —       $ 88     $ (4 )   $ (1 )   $ (83 )

Goods in transit

     —         73     —         73       —         73       (5 )     46       (114 )

Other net sales adjustments

     (29 )     4     5       (20 )     —         (20 )     14       5       1  

International pension and employee benefit plan accrual

     65       —       10       75       2       77       —         4       (46 )

Intercompany accounts

     29       —       —         29       —         29       —         —         (29 )

Other marketing, selling and administrative adjustments

     (11 )     —       (1 )     (12 )     —         (12 )     8       3       1  

Intercompany foreign exchange gains and losses

     —         8     —         8       —         8       (28 )     (90 )     (53 )

Other restatement items

     (22 )     —       2       (20 )     —         (20 )     8       1       (8 )

Post closing litigation accrual

     —         —       —         —         (25 )     (25 )     —         —         —    
   
 
 
 
 
 
 
 
 

Total pre-tax adjustments

     97       85     39       221       (23 )     198       (7 )     (32 )     (331 )

Adjustments to minority interest, net of taxes

     49       —       —         49       —         49       (6 )     (4 )     (39 )

Provision for income taxes

     —         —       (87 )     (87 )     (6 )     (93 )     46       (136 )     114  

Discontinued operations

     —         —       —         —         —         —         38       —         —    
   
 
 
 
 
 
 
 
 

Total Net Earnings impact

   $ 146     $ 85   $ (48 )   $ 183     $ (29 )   $ 154     $ 71     $ (172 )   $ (256 )
   
 
 
 
 
 
 
 
 

BRISTOL-MYERS SQUIBB COMPANY

 

RESTATEMENT

 

NET SALES RECONCILIATION

 

(dollars in millions)

 

     2003
     Q1
    Q2
     Q3
    Q4
    Total Year

Net Sales, fourth quarter and total year as previously disclosed; first, second and third quarters as previously reported

    $ 4,711    $ 5,052     $ 5,337    $ 5,571    $ 20,671

Adjustments

                                    

WIC rebates accrual

      4      84       —        —        88

Goods in transit

      2      (7 )     10      94      99

Other net sales adjustments

      11      —         —        —        11

Reclassification from Other expense, net

      —        —         25      —        25
    
  
 
  
  

Net Sales, fourth quarter and total year as reported; first, second and third quarters as restated

    $ 4,728    $ 5,129     $ 5,372    $ 5,665    $ 20,894
    
  
 
  
  

BRISTOL-MYERS SQUIBB COMPANY

 

RESTATEMENT RECONCILIATION

 

EARNINGS FROM CONTINUING OPERATIONS

 

INCLUDING SPECIFIED ITEMS

 

(dollars in millions, except earnings per share)

 

     2003
  
     Q1
     Q2
     Q3
     Q4
     Total Year
  

Earnings from Continuing Operations, fourth quarter and total year as previously disclosed; first, second and third quarters as previously reported

    $ 761     $ 878     $ 884     $ 429     $ 2,952  
    
 
 
 
 

Diluted Earnings per Common Share from Continuing Operations, fourth quarter and total year as previously disclosed; first, second and third quarters as previously reported *

    $ 0.39     $ 0.45     $ 0.45     $ 0.22     $ 1.51  
    
 
 
 
 

Adjustments

                                         

WIC rebates accrual

      4       84       —         —         88  

Goods in transit

      1       (4 )     8       68       73  

Other net sales adjustments

      6       (16 )     (8 )     (2 )     (20 )

International pensions and employee benefit plan accrual

      —         1       1       75       77  

Intercompany accounts

      —         —         31       (2 )     29  

Other marketing, selling and administrative adjustments

      (4 )     (25 )     13       4       (12 )

Intercompany foreign exchange gains and losses

      44       (6 )     (34 )     4       8  

Other restatement items

      (8 )     (3 )     (4 )     (5 )     (20 )

Post closing litigation accrual

      —         —         —         (25 )     (25 )

Adjustments to minority interest, net of taxes

      —         —         49       —         49  

Provision for income taxes

      (12 )     (7 )     (34 )     (40 )     (93 )
    
 
 
 
 

Earnings from Continuing Operations, fourth quarter and total year as reported; first, second and third quarters as restated

    $ 792     $ 902     $ 906     $ 506     $ 3,106  
    
 
 
 
 

Diluted Earnings per Common Share from Continuing Operations, fourth quarter and total year as reported; first, second and third quarters as restated *

    $ 0.41     $ 0.46     $ 0.47     $ 0.26     $ 1.59  
    
 
 
 
 
* - amounts may not add due to rounding of individual calculations.

BRISTOL-MYERS SQUIBB COMPANY

CONSOLIDATED STATEMENT OF EARNINGS

(dollars in millions)

 

     2003
  
     Q1
     Q2
     Q3
     Q4
     TOTAL YEAR
  
     As Previously
Reported*
     As Restated
     As Previously
Reported*
     As Restated
     As Previously
Reported*
     As Restated
     As Previously
Disclosed**
     As
Reported
     As Previously
Disclosed**
    As Reported
  

Net Sales

    $ 4,711     $ 4,728     $ 5,052     $ 5,129     $ 5,337     $ 5,372     $ 5,571     $ 5,665     $ 20,671     $ 20,894  

Cost of products sold

      1,685       1,709       1,796       1,852       1,908       1,929       2,080       2,102       7,575       7,592  

Marketing, selling, and administrative

      1,032       1,100       1,058       1,147       1,118       1,151       1,289       1,262       4,578       4,660  

Advertising and product promotion

      364       315       418       354       375       332       464       415       1,609       1,416  

Research and development

      476       475       530       524       568       565       714       715       2,279       2,279  

Provision for restructuring and other items

      12       12       (17 )     (7 )     13       13       8       8       16       26  

Litigation charges, net

      (21 )     (21 )     (41 )     (41 )     (4 )     (4 )     240       265       174       199  

Equity in net income of affiliates

      —         (22 )     —         (48 )     —         (54 )     (26 )     (27 )     (102 )     (151 )

Other expense, net

      88       (3 )     143       101       67       79       (29 )     2       71       179  
    
 
 
 
 
 
 
 
 
 

Total expenses

      3,636       3,565       3,887       3,882       4,045       4,011       4,740       4,742       16,200       16,200  
    
 
 
 
 
 
 
 
 
 

Earnings from Continuing Operations

                                                                                 

Before Minority Interest and Income Taxes

      1,075       1,163       1,165       1,247       1,292       1,361       831       923       4,471       4,694  

Provision for income taxes

      294       316       248       262       317       345       277       292       1,173       1,215  

Minority Interest, net of taxes

      20       55       39       83       91       110       125       125       346       373  
    
 
 
 
 
 
 
 
 
 

Net Earnings

    $ 761     $ 792     $ 878     $ 902     $ 884     $ 906     $ 429     $ 506     $ 2,952     $ 3,106  
    
 
 
 
 
 
 
 
 
 
* - Q1 to Q3 as previously reported amounts are per 10-Qs and have not been reclassified to conform to current presentation.
** - As previously disclosed in the January 29, 2004 press release.

BRISTOL-MYERS SQUIBB COMPANY

CONSOLIDATED STATEMENT OF EARNINGS

INCLUDING SPECIFIED ITEMS

(dollars in millions)

 

     2002 Restated
  
     Q1
     Q2
     Q3
     Q4
     Total
Year
  

Net Sales

    $ 4,674     $ 4,097     $ 4,524     $ 4,811     $ 18,106  

Cost of products sold

      1,508       1,480       1,668       1,876       6,532  

Marketing, selling, and administrative

      924       1,016       993       1,191       4,124  

Advertising and product promotion

      236       301       263       343       1,143  

Research and development

      497       515       537       657       2,206  

Acquired in-process research and development

      160       —         7       2       169  

Provision for restructuring and other items

      (1 )     2       (11 )     24       14  

Litigation charges, net

      90       —         569       —         659  

Gain on sale of businesses

      (30 )     —         —         —         (30 )

Asset impairment charge for ImClone

      —         —         379       —         379  

Equity in net income of affiliates

      (29 )     (3 )     (28 )     (20 )     (80 )

Other expense, net

      47       41       40       101       229  
    
 
 
 
 

Total expenses

      3,402       3,352       4,417       4,174       15,345  
    
 
 
 
 

Earnings from Continuing Operations

                                         

Before Minority Interest and Income Taxes

      1,272       745       107       637       2,761  

Provision for income taxes

      334       206       (263 )     114       391  

Minority Interest, net of taxes

      85       62       60       96       303  
    
 
 
 
 

Earnings from Continuing Operations

      853       477       310       427       2,067  
    
 
 
 
 

Discontinued Operations, net

      14       —         18       38       70  
    
 
 
 
 

Net Earnings

    $ 867     $ 477     $ 328     $ 465     $ 2,137  
    
 
 
 
 
     2003
  
     Restated
Q1
     Restated
Q2
     Restated
Q3
     Q4
     Total
Year
  

Net Sales

    $ 4,728     $ 5,129     $ 5,372     $ 5,665     $ 20,894  

Cost of products sold

      1,709       1,852       1,929       2,102       7,592  

Marketing, selling, and administrative

      1,100       1,147       1,151       1,262       4,660  

Advertising and product promotion

      315       354       332       415       1,416  

Research and development

      475       524       565       715       2,279  

Provision for restructuring and other items

      12       (7 )     13       8       26  

Litigation charges, net

      (21 )     (41 )     (4 )     265       199  

Equity in net income of affiliates

      (22 )     (48 )     (54 )     (27 )     (151 )

Other expense, net

      (3 )     101       79       2       179  
    
 
 
 
 

Total expenses

      3,565       3,882       4,011       4,742       16,200  
    
 
 
 
 

Earnings from Continuing Operations

                                         

Before Minority Interest and Income Taxes

      1,163       1,247       1,361       923       4,694  

Provision for income taxes

      316       262       345       292       1,215  

Minority Interest, net of taxes

      55       83       110       125       373  
    
 
 
 
 

Earnings from Continuing Operations

    $ 792     $ 902     $ 906     $ 506     $ 3,106  
    
 
 
 
 

Discontinued Operations, net

      —         —         —         —         —    
    
 
 
 
 

Net Earnings

    $ 792     $ 902     $ 906     $ 506     $ 3,106  
    
 
 
 
 

BRISTOL-MYERS SQUIBB COMPANY

EARNINGS FROM CONTINUING OPERATIONS BEFORE MINORITY INTEREST

AND INCOME TAXES EXCLUDING SPECIFIED ITEMS

(dollars in millions)

 

     2002 Restated
  
     Q1
     Q2
     Q3
     Q4
    Total Year
  

Earnings from Continuing Operations Before Minority Interest and Income Taxes

    $ 1,272     $ 745     $ 107     $ 637    $ 2,761  

Specified items:

                                        

Acquired in-process research and development

      160       —         7       2      169  

Provision for restructuring/other

      89       4       541       93      727  

Asset impairment charge

      —         —         379       —        379  

Gain on sale of businesses/product lines

      (30 )     —         —         —        (30 )
    
 
 
 
  

Earnings from Continuing Operations Before Minority Interest and Income Taxes Excluding Specified Items

    $ 1,491     $ 749     $ 1,034     $ 732    $ 4,006  
    
 
 
 
  
     2003
  
     Restated
Q1
     Restated
Q2
     Restated
Q3
     Q4
    Total Year
  

Earnings from Continuing Operations Before Minority Interest and Income Taxes

    $ 1,163     $ 1,247     $ 1,361     $ 923    $ 4,694  

Specified items:

                                        

Provision for restructuring/other

      26       4       55       110      195  

Litigation (recoveries) charges

      (21 )     (41 )     (4 )     265      199  
    
 
 
 
  

Earnings from Continuing Operations Before Minority Interest and Income Taxes Excluding Specified Items

    $ 1,168     $ 1,210     $ 1,412     $ 1,298    $ 5,088  
    
 
 
 
  

 

The above presentation contains non-GAAP earnings information adjusted to exclude certain costs, expenses, gains or losses and other specified items. Among the items in GAAP earnings but excluded for purposes of determining adjusted earnings are: gains or losses from sale of product lines, from sale or write-down of equity investments and from discontinued of operations; restructuring and similar charges; charges relating to significant legal proceedings; co-promotion or alliance charges and payments for in-process research and development which under GAAP are immediately expensed rather than amortized over the life of the agreement. This information is intended to enhance an investor’s overall understanding of the Company’s past financial performance and prospects for the future. For example, non-GAAP earnings per share information is an indication of the Company’s baseline performance before items that are considered by the Company to be not reflective of the Company’s operational results. In addition, this information is among the primary indicators the Company uses as a basis for evaluating Company performance, allocating resources, setting incentive compensation targets, and planning and forecasting for future periods. This information is not intended to be considered in isolation or as a substitute for diluted earnings per share prepared in accordance with GAAP.

BRISTOL-MYERS SQUIBB COMPANY

 

DILUTED EARNINGS PER COMMON SHARE FROM CONTINUING OPERATIONS*

 

EXCLUDING SPECIFIED ITEMS

 

     2002 Restated
  
     Q1
     Q2
     Q3*
     Q4
    Total Year
  

Diluted Earnings per Common Share from Continuing Operations

    $ 0.43     $ 0.25     $ 0.16     $ 0.22    $ 1.06  

Specified items:

                                        

Acquired in-process research and development

      0.05       —         —         —        0.05  

Provision for restructuring/other*

      0.03       —         0.17       0.03      0.22  

Asset impairment charge

      —         —         0.12       —        0.13  

Gain on sale of businesses/product lines

      (0.01 )     —         —         —        (0.01 )

Tax issues

      —         —         (0.12 )     —        (0.12 )
    
 
 
 
  

Diluted Earnings per Common Share from Continuing Operations Excluding Specified Items*

    $ 0.50     $ 0.25     $ 0.34     $ 0.25    $ 1.33  
    
 
 
 
  
     2003
  
     Restated
Q1
     Restated
Q2
     Restated
Q3*
     Q4
    Total Year
  

Diluted Earnings per Common Share from Continuing Operations*

    $ 0.41     $ 0.46     $ 0.47       0.26    $ 1.59  

Specified items:

                                        

Provision for restructuring/other

      0.01       —         0.02       0.04      0.07  

Litigation (recoveries) charges

      (0.01 )     (0.01 )     —         0.13      0.11  
    
 
 
 
  

Diluted Earnings per Common Share from Continuing Operations Excluding Specified Items*

    $ 0.41     $ 0.45     $ 0.48       0.43    $ 1.78  
    
 
 
 
  
* - amounts may not add due to rounding of individual calculations.

 

The above presentation contains non-GAAP earnings per share information adjusted to exclude certain costs, expenses, gains or losses and other specified items. Among the items in GAAP earnings but excluded for purposes of determining adjusted earnings are: gains or losses from sale of product lines, from sale or write-down of equity investments and from discontinued of operations; restructuring and similar charges; charges relating to significant legal proceedings; co-promotion or alliance charges and payments for in-process research and development which under GAAP are immediately expensed rather than amortized over the life of the agreement. This information is intended to enhance an investor’s overall understanding of the Company’s past financial performance and prospects for the future. For example, non-GAAP earnings per share information is an indication of the Company’s baseline performance before items that are considered by the Company to be not reflective of the Company’s operational results. In addition, this information is among the primary indicators the Company uses as a basis for evaluating Company performance, allocating resources, setting incentive compensation targets, and planning and forecasting for future periods. This information is not intended to be considered in isolation or as a substitute for diluted earnings per share prepared in accordance with GAAP.