EX-99.2 3 dex992.htm CERTAIN SUPPLEMENTAL INFORMATION Certain supplemental information

Exhibit 99.2

BRISTOL-MYERS SQUIBB COMPANY

QUARTERLY TREND ANALYSIS OF SALES

($ in millions)

 

Net Sales    2008    2009    % Change     FX Impact  
   1st Qtr    2nd Qtr    6 Months    3rd Qtr    9 Months    4th Qtr    Year    1st Qtr    2nd Qtr    6 Months    3rd Qtr    9 Months    4th Qtr    Year    Qtr
vs.
Qtr		     YTD
vs.
YTD		     Qtr
vs.
Qtr		     YTD
vs.
YTD		  

Total

    $ 4,188    $ 4,475    $ 8,663    $ 4,510    $ 13,173    $ 4,542    $ 17,715    $ 4,322    $ 4,665    $ 8,987    $ 4,788    $ 13,775    $ 5,033    $ 18,808    11 %    6 %    4 %    -2 % 

US Pharmaceuticals

      2,451      2,610      5,061      2,695      7,756      2,809      10,565      2,766      2,974      5,740      3,012      8,752      3,115      11,867    11 %    12 %    N/A      N/A   

CV/Metabolics

      1,407      1,483      2,890      1,517      4,407      1,552      5,959      1,554      1,699      3,253      1,707      4,960      1,737      6,697    12 %    12 %    N/A      N/A   

Oncology/Virology

      619      633      1,252      641      1,893      655      2,548      627      638      1,265      659      1,924      689      2,613    5 %    3 %    N/A      N/A   

Neuroscience

      352      407      759      440      1,199      497      1,696      486      520      1,006      521      1,527      563      2,090    13 %    23 %    N/A      N/A   

Immunoscience

      73      87      160      97      257      105      362      99      117      216      125      341      126      467    20 %    29 %    N/A      N/A   

Intercon Pharmaceuticals

      384      401      785      411      1,196      385      1,581      309      341      650      354      1,004      376      1,380    -2 %    -13 %    6 %    -7 % 

EMAP Pharmaceuticals

      398      436      834      437      1,271      437      1,708      379      420      799      457      1,256      482      1,738    10 %    2 %    8 %    -3 % 

Europe Pharmaceuticals

      933      996      1,929      935      2,864      886      3,750      827      883      1,710      911      2,621      1,004      3,625    13 %    -3 %    10 %    -7 % 

 

% of Total Sales    2008     2009     Basis Point Change  
   1st Qtr     2nd Qtr     6 Months     3rd Qtr     9 Months     4th Qtr     Year     1st Qtr     2nd Qtr     6 Months     3rd Qtr     9 Months     4th Qtr     Year     Qtr
vs.
Qtr		     YTD
vs.
YTD		  

Total

    100.0 %    100.0 %    100.0 %    100.0 %    100.0 %    100.0 %    100.0 %    100.0 %    100.0 %    100.0 %    100.0 %    100.0 %    100.0 %    100.0 %    —        —     

US Pharmaceuticals

    58.5 %    58.3 %    58.4 %    59.8 %    58.9 %    61.8 %    59.6 %    64.0 %    63.8 %    63.9 %    62.9 %    63.5 %    61.9 %    63.1 %    10      350   

CV/Metabolics

    33.6 %    33.1 %    33.4 %    33.6 %    33.4 %    34.2 %    33.6 %    36.0 %    36.4 %    36.2 %    35.6 %    36.0 %    34.5 %    35.6 %    30      200   

Oncology/Virology

    14.8 %    14.2 %    14.4 %    14.2 %    14.4 %    14.4 %    14.4 %    14.5 %    13.7 %    14.1 %    13.8 %    14.0 %    13.7 %    13.9 %    (70 )    (50 ) 

Neuroscience

    8.4 %    9.1 %    8.8 %    9.8 %    9.1 %    10.9 %    9.6 %    11.2 %    11.2 %    11.2 %    10.9 %    11.1 %    11.2 %    11.1 %    30      150   

Immunoscience

    1.7 %    1.9 %    1.8 %    2.2 %    2.0 %    2.3 %    2.0 %    2.3 %    2.5 %    2.4 %    2.6 %    2.4 %    2.5 %    2.5 %    20      50   

Intercon Pharmaceuticals

    9.2 %    9.0 %    9.1 %    9.1 %    9.1 %    8.5 %    8.9 %    7.1 %    7.3 %    7.2 %    7.4 %    7.3 %    7.5 %    7.3 %    (100 )    (160 ) 

EMAP Pharmaceuticals

    9.5 %    9.7 %    9.6 %    9.7 %    9.6 %    9.6 %    9.6 %    8.8 %    9.0 %    8.9 %    9.5 %    9.1 %    9.6 %    9.2 %    —        (40 ) 

Europe Pharmaceuticals

    22.3 %    22.3 %    22.3 %    20.7 %    21.7 %    19.5 %    21.2 %    19.1 %    18.9 %    19.0 %    19.0 %    19.0 %    19.9 %    19.3 %    40      (190 ) 

 

1

BRISTOL-MYERS SQUIBB COMPANY

SALES AND COMPOSITION OF CHANGE IN SALES FOR CONTINUING OPERATIONS

FOR THE PERIOD ENDED DECEMBER 31, 2009

($ in millions)

QUARTER-TO-DATE

 

     US     Non-US     Total  

Price Increases/(Decreases)

      6 %      —          3 % 

Foreign Exchange

      —          9 %      4 % 

Volume

      5 %      2 %      4 % 
                        

Total Change

      11 %      11 %      11 % 
                        

Total 2009 Period to Date Sales

    $ 3,127      $ 1,906      $ 5,033   

Total 2008 Period to Date Sales

    $ 2,819      $ 1,723      $ 4,542   
YEAR-TO-DATE   
     US     Non-US     Total  

Price Increases/(Decreases)

      7 %      —          4 % 

Foreign Exchange

      —          -6 %      -2 % 

Volume

      5 %      3 %      4 % 
                        

Total Change

      12 %      -3 %      6 % 
                        

Total 2009 Period to Date Sales

    $ 11,909      $ 6,899      $ 18,808   

Total 2008 Period to Date Sales

    $ 10,611      $ 7,104      $ 17,715   

 

2

BRISTOL-MYERS SQUIBB COMPANY

CONSOLIDATED STATEMENT OF EARNINGS FROM CONTINUING OPERATIONS

($ in millions, except per share amounts)

 

     2008     2009     % Change  
     1st Qtr     2nd Qtr     6 Months     3rd Qtr     9 Months     4th Qtr     Year     1st Qtr     2nd Qtr     6 Months     3rd Qtr     9 Months     4th Qtr     Year     Qtr
vs.
Qtr		     YTD
vs.
YTD		  

Net Sales

    $ 4,188      $ 4,475      $ 8,663      $ 4,510      $ 13,173      $ 4,542      $ 17,715      $ 4,322      $ 4,665      $ 8,987      $ 4,788      $ 13,775      $ 5,033      $ 18,808      11 %    6 % 

Cost of products sold

      1,318        1,398        2,716        1,346        4,062        1,254        5,316        1,165        1,225        2,390        1,317        3,707        1,433        5,140      14 %    -3 % 

Marketing, selling and administrative

      995        1,013        2,008        1,034        3,042        1,098        4,140        901        922        1,823        953        2,776        1,170        3,946      7 %    -5 % 

Advertising and product promotion

      235        325        560        265        825        356        1,181        248        298        546        256        802        334        1,136      -6 %    -4 % 

Research and development

      766        809        1,575        816        2,391        1,121        3,512        908        811        1,719        820        2,539        1,108        3,647      -1 %    4 % 

Acquired in-process research and development

      —          32        32        —          32        —          32        —          —          —          —          —          —          —        —        -100 % 

Provision for restructuring, net

      10        29        39        25        64        151        215        19        19        38        51        89        47        136      -69 %    -37 % 

Litigation expense, net

      —          2        2        30        32        1        33        104        28        132        —          132        —          132      -100 %    *   

Equity in net income of affiliates

      (164 )      (150 )      (314 )      (164 )      (478 )      (139 )      (617 )      (146 )      (150 )      (296 )      (139 )      (435 )      (115 )      (550 )    -17 %    -11 % 

Gain on sale of Imclone shares

      —          —          —          —          —          (895 )      (895 )      —          —          —          —          —          —          —        100 %    100 % 

Other (income)/expense, net

      30        (16 )      14        167        181        (159 )      22        (72 )      (10 )      (82 )      (35 )      (117 )      (264 )      (381 )    66 %    *   
                                                                                                                            

Total expenses

      3,190        3,442        6,632        3,519        10,151        2,788        12,939        3,127        3,143        6,270        3,223        9,493        3,713        13,206      33 %    2 % 

Earnings from Continuing Operations Before Income Taxes

    $ 998      $ 1,033      $ 2,031      $ 991      $ 3,022      $ 1,754      $ 4,776      $ 1,195      $ 1,522      $ 2,717      $ 1,565      $ 4,282      $ 1,320      $ 5,602      -25 %    17 % 

Provision for income taxes

      261        193        454        266        720        370        1,090        275        353        628        366        994        188        1,182      -49 %    8 % 
                                                                                                                            

Net Earnings from Continuing Operations

    $ 737      $ 840      $ 1,577      $ 725      $ 2,302      $ 1,384      $ 3,686      $ 920      $ 1,169      $ 2,089      $ 1,199      $ 3,288      $ 1,132      $ 4,420      -18 %    20 % 

Net Earnings Attributable to Noncontrolling Interest

      228        239        467        257        724        265        989        271        289        560        307        867        314        1,181      18 %    19 % 
                                                                                                                            

Net Earnings from Continuing Operations Attributable to Bristol-Myers Squibb Company

    $ 509      $ 601      $ 1,110      $ 468      $ 1,578      $ 1,119      $ 2,697      $ 649      $ 880      $ 1,529      $ 892      $ 2,421      $ 818      $ 3,239      -27 %    20 % 
                                                                                                                            

Contingently convertible debt interest expense and dividends attributable to unvested shares

      5        1        6        1        7        (5 )      3        (4 )      (5 )      (8 )      (5 )      (13 )      (4 )      (17 )    -20 %    *   
                                                                                                                            

Net Earnings used for Diluted EPS Calc - Continuing Operations-Attributable to Bristol-Myers Squibb Company

    $ 514      $ 602      $ 1,116      $ 469      $ 1,585      $ 1,114      $ 2,700      $ 645      $ 875      $ 1,521      $ 887      $ 2,408      $ 814      $ 3,222      -27 %    19 % 
                                                                                                                            

Diluted Earnings Attributable to Bristol-Myers Squibb Company per Common Share** - Continuing Operations

    $ 0.26      $ 0.30      $ 0.56      $ 0.23      $ 0.79      $ 0.56      $ 1.35      $ 0.33      $ 0.44      $ 0.77      $ 0.45      $ 1.21      $ 0.41      $ 1.63      -27 %    21 % 

Average Common Shares Outstanding - Diluted

      2,006        2,006        2,005        2,002        2,004        1,980        1,999        1,981        1,983        1,982        1,984        1,982        1,967        1,978      -1 %    -1 % 

Dividends declared per common share

    $ 0.31      $ 0.31      $ 0.62      $ 0.31      $ 0.93      $ 0.31      $ 1.24      $ 0.31      $ 0.31      $ 0.62      $ 0.31      $ 0.93      $ 0.32      $ 1.25      3 %    1 % 
% of Net
Sales		    2008     2009     Basis Point
Change		  
   1st Qtr     2nd Qtr     6 Months     3rd Qtr     9 Months     4th Qtr     Year     1st Qtr     2nd Qtr     6 Months     3rd Qtr     9 Months     4th Qtr     Year     Qtr
vs.
Qtr		     YTD
vs.
YTD		  

Gross Margin

      68.5 %      68.8 %      68.6 %      70.2 %      69.2 %      72.4 %      70.0 %      73.0 %      73.7 %      73.4 %      72.5 %      73.1 %      71.5 %      72.7 %    (90 )    270   

Cost of products sold

      31.5 %      31.2 %      31.4 %      29.8 %      30.8 %      27.6 %      30.0 %      27.0 %      26.3 %      26.6 %      27.5 %      26.9 %      28.5 %      27.3 %    90      (270 ) 

Marketing, selling and administrative

      23.8 %      22.6 %      23.2 %      22.9 %      23.1 %      24.2 %      23.4 %      20.8 %      19.8 %      20.3 %      19.9 %      20.2 %      23.2 %      21.0 %    (100 )    (240 ) 

Advertising and product promotion

      5.6 %      7.3 %      6.5 %      5.9 %      6.3 %      7.8 %      6.7 %      5.7 %      6.4 %      6.1 %      5.3 %      5.8 %      6.6 %      6.0 %    (120 )    (70 ) 

Research and development

      18.3 %      18.1 %      18.2 %      18.1 %      18.2 %      24.7 %      19.8 %      21.0 %      17.4 %      19.1 %      17.1 %      18.4 %      22.0 %      19.4 %    (270 )    (40 ) 

Acquired in-process research and development

      —          0.7 %      0.4 %      —          0.2 %      —          0.2 %      —          —          —          —          —          —          —        —        (20 ) 

Total expenses

      76.2 %      76.9 %      76.6 %      78.0 %      77.1 %      61.4 %      73.0 %      72.4 %      67.4 %      69.8 %      67.3 %      68.9 %      73.8 %      70.2 %    1,240      (280 ) 

Earnings from Continuing Operations Before Income Taxes

      23.8 %      23.1 %      23.4 %      22.0 %      22.9 %      38.6 %      27.0 %      27.6 %      32.6 %      30.2 %      32.7 %      31.1 %      26.2 %      29.8 %    (1,240 )    280   

Net Earnings from Continuing Operations Attributable to Bristol-Myers Squibb Company

      12.2 %      13.4 %      12.8 %      10.4 %      12.0 %      24.6 %      15.2 %      15.0 %      18.9 %      17.0 %      18.6 %      17.6 %      16.3 %      17.2 %    (830 )    200   

Other Ratios

                                 

Effective Tax Rate

      26.2 %      18.7 %      22.4 %      26.8 %      23.8 %      21.1 %      22.8 %      23.0 %      23.2 %      23.1 %      23.4 %      23.2 %      14.2 %      21.1 %    (690 )    (170 ) 
Other
(Income)/
Expense, net		    2008     2009     % Change  
   1st Qtr     2nd Qtr     6 Months     3rd Qtr     9 Months     4th Qtr     Year     1st Qtr     2nd Qtr     6 Months     3rd Qtr     9 Months     4th Qtr     Year     Qtr
vs.
Qtr		     YTD
vs.
YTD		  

Interest expense

    $ 73      $ 80      $ 153      $ 84      $ 237      $ 73      $ 310      $ 52      $ 42      $ 94      $ 47      $ 141      $ 43      $ 184      -41 %    -41 % 

Interest income

      (43 )      (31 )      (74 )      (37 )      (111 )      (19 )      (130 )      (13 )      (14 )      (27 )      (13 )      (40 )      (14 )      (54 )    -26 %    -58 % 

ARS impairment charge

      25        —          25        224        247        58        305        —          —          —          —          —          —          —        -100 %    -100 % 

(Gain)/Loss on debt buyback and termination of interest rate swap agreements

      —          —          —          —          —          (57 )      (57 )      —          (11 )      (11 )      4        (7 )      —          (7 )    -100 %    -88 % 

Foreign exchange transaction losses/(gains)

      18        (2 )      16        (52 )      (36 )      (42 )      (78 )      (13 )      17        4        13        17        (15 )      2      -64 %    -103 % 

Gain on sale of product lines, businesses and assets

      (9 )      —          (9 )      —          (9 )      (159 )      (168 )      (44 )      (11 )      (55 )      (17 )      (72 )      (288 )      (360 )    81 %    114 % 

Medarex acquisition

      —          —          —          —          —          —          —          —          —          —          (10 )      (10 )      —          (10 )    —        —     

Net royalty income and amortization of upfront and milestone payments received from alliance partners

      (41 )      (41 )      (82 )      (42 )      (124 )      (17 )      (141 )      (35 )      (34 )      (69 )      (50 )      (119 )      (29 )      (148 )    71 %    5 % 

Pension settlements/curtailments

      —          —          —          —          —          8        8        —          25        25        —          25        18        43      125 %    *   

Other , net

      7        (22 )      (15 )      (10 )      (23 )      (4 )      (27 )      (19 )      (24 )      (43 )      (9 )      (52 )      21        (31 )    *      15 % 
                                                                                                                            
   $ 30      ($ 16 )    $ 14      $ 167      $ 181      ($ 159 )    $ 22      ($ 72 )    ($ 10 )    ($ 82 )    ($ 35 )    ($ 117 )      (264 )    ($ 381 )    66 %    *   

 

* in excess of +/- 200%
** quarterly amounts may not add to the year-to-date totals due to rounding of individual calculations.

 

3

BRISTOL-MYERS SQUIBB COMPANY

RECONCILIATION OF GAAP AND NON-GAAP GROWTH DOLLARS AND PERCENTAGES EXCLUDING FOREIGN EXCHANGE IMPACT

FOR THE PERIOD ENDED DECEMBER 31, 2009

(Unaudited, amounts in millions except per share data)

QUARTER-TO-DATE

 

     2009    2008    Growth $     Growth %     Favorable /
(Unfavorable)
FX Impact $ *		     2009
Excluding FX		    Favorable /
(Unfavorable)
FX Impact % *		     Growth %
Excluding FX		  

Net sales

    $ 5,033    $ 4,542    491      11 %    141      4,892    4 %    7 % 

Marketing, selling and administrative (a)

      1,170      1,098    72      7 %    (43 )    1,127    -5 %    2 % 

Marketing, selling and administrative excluding specified items (b)

      1,025      1,053    (28 )    -3 %    (44 )    981    -4 %    -7 % 

Advertising and product promotion

      334      356    (22 )    -6 %    (11 )    323    -3 %    -9 % 

Advertising and product promotion excluding specified items (b)

      334      356    (22 )    -6 %    (11 )    323    -3 %    -9 % 

Research and development

      1,108      1,121    (13 )    -1 %    (11 )    1,097    -1 %    -2 % 

Research and development excluding specified items (b)

      935      848    87      10 %    (11 )    924    -1 %    9 % 

(a) General and administrative

      540      494    46      9 %    (13 )    527    -3 %    6 % 

General and administrative excluding specified items (c)

      395      449    (54 )    -12 %    (14 )    381    -2 %    -14 % 

(b) Please refer to the Specified Items QTD tab for detail of specified items and the GAAP to Non-GAAP P&L tab for reconciliation.

(c) The following table provides a reconciliation table of General and administrative GAAP to Non-GAAP figures:

 

     2009    2008

General and administrative

    540    494

Specified Items:

      

Process standardization implementation costs

    45    45

BMS foundation funding initiative

    100    —  
         

General and administrative excluding specified items

    395    449
         

YEAR-TO-DATE

 

     2009    2008    Growth $     Growth %     Favorable /
(Unfavorable)
FX Impact $ *		     2009
Excluding FX		    Favorable /
(Unfavorable)
FX Impact % *		     Growth %
Excluding FX		  

Net sales

    $ 18,808    $ 17,715    1,093      6 %    (427 )    19,235    -2 %    8 % 

Marketing, selling and administrative (a)

      3,946      4,140    (194 )    -5 %    88      4,034    2 %    -3 % 

Marketing, selling and administrative excluding specified items (b)

      3,736      4,031    (295 )    -7 %    86      3,822    2 %    -5 % 

Advertising and product promotion

      1,136      1,181    (45 )    -4 %    21      1,157    2 %    -2 % 

Advertising and product promotion excluding specified items (b)

      1,136      1,181    (45 )    -4 %    21      1,157    2 %    -2 % 

Research and development

      3,647      3,512    135      4 %    51      3,698    1 %    5 % 

Research and development excluding specified items (b)

      3,300      3,151    149      5 %    51      3,351    1 %    6 % 

(a) General and administrative

      1,594      1,727    (133 )    -8 %    27      1,621    2 %    -6 % 

General and administrative excluding specified items (c)

      1,384      1,618    (234 )    -14 %    25      1,409    2 %    -12 % 

(b) Please refer to the Specified Items YTD tab for detail of specified items and the GAAP to Non-GAAP P&L tab for reconciliation.

(c) The following table provides a reconciliation table of General and administrative GAAP to Non-GAAP figures:

 

     2009    2008

General and administrative

    1,594    1,727

Specified Items:

      

Process standardization implementation costs

    110    109

BMS foundation funding initiative

    100    —  
         

General and administrative excluding specified items

    1,384    1,618
         

* The company calculates the foreign exchange (FX) impact by determining the change in a line item’s current and prior period results at a common exchange rate and comparing this change to the actual reported change from the same period. This difference is determined to be the FX impact.

 

4

BRISTOL-MYERS SQUIBB COMPANY

RECONCILIATION OF GAAP AND NON-GAAP GROWTH DOLLARS AND PERCENTAGES EXCLUDING FOREIGN EXCHANGE IMPACT

FOR THE PERIOD ENDED DECEMBER 31, 2009

(Unaudited, amounts in millions except per share data)

QUARTER-TO-DATE

 

      2009    2008    Growth $     Growth %     Favorable /
(Unfavorable)
FX Impact $ *		    2009
Excluding FX		    Favorable /
(Unfavorable)
FX Impact % *		     Growth %
Excluding FX		  

Plavix

    1,618    1,469    149      10 %    20    1,598    2 %    8 % 

Avapro/Avalide

    339    316    23      7 %    17    322    5 %    2 % 

Abilify

    707    606    101      17 %    9    698    2 %    15 % 

Reyataz

    388    329    59      18 %    12    376    5 %    13 % 

Sustiva Franchise

    358    300    58      19 %    2    356    1 %    18 % 

Baraclude

    212    153    59      39 %    5    207    5 %    34 % 

Orencia

    168    129    39      30 %    2    166    2 %    28 % 

Erbitux

    167    182    (15 )    -8 %    —      167    —        -8 % 

Sprycel

    119    86    33      38 %    5    114    9 %    29 % 

Ixempra

    28    25    3      12 %    —      28    —        12 % 

Onglyza

    4    —      4      N/A      —      4    N/A      N/A   

YEAR-TO-DATE

 

     2009    2008    Growth $     Growth %     Favorable /
(Unfavorable)
FX Impact $ *		     2009
Excluding FX		    Favorable /
(Unfavorable)
FX Impact % *		     Growth %
Excluding FX		  

Plavix

    6,146    5,603    543      10 %    (33 )    6,179    —        10 % 

Avapro/Avalide

    1,283    1,290    (7 )    -1 %    (33 )    1,316    -3 %    2 % 

Abilify

    2,592    2,153    439      20 %    (47 )    2,639    -2 %    22 % 

Reyataz

    1,401    1,292    109      8 %    (52 )    1,453    -4 %    12 % 

Sustiva Franchise

    1,277    1,149    128      11 %    (50 )    1,327    -4 %    15 % 

Baraclude

    734    541    193      36 %    (25 )    759    -4 %    40 % 

Orencia

    602    441    161      37 %    (11 )    613    -2 %    39 % 

Erbitux

    683    749    (66 )    -9 %    —        683    —        -9 % 

Sprycel

    421    310    111      36 %    (24 )    445    -6 %    42 % 

Ixempra

    109    101    8      8 %    —        109    —        8 % 

Onglyza

    24    —      24      N/A      —        24    N/A      N/A   

 

* The company calculates the foreign exchange (FX) impact by determining the change in a product’s current and prior period results at a common exchange rate and comparing this change to the actual reported change from the same period. This difference is determined to be the FX impact.

 

5

BRISTOL-MYERS SQUIBB COMPANY

WORLDWIDE NET SALES FROM CONTINUING OPERATIONS BY PRODUCT

QUARTERLY SALES TREND ANALYSIS

($ in millions)

 

     2008    2009    % Change     FX Impact  
     1st Qtr    2nd Qtr    6 Months    3rd Qtr    9 Months    4th Qtr    Year    1st Qtr    2nd Qtr    6 Months    3rd Qtr    9 Months    4th Qtr    Year    Qtr
vs.
Qtr		     YTD
vs.
YTD		     Qtr
vs.
Qtr		     YTD
vs.
YTD		  

TOTAL

    4,188    4,475    8,663    4,510    13,173    4,542    17,715    4,322    4,665    8,987    4,788    13,775    5,033    18,808    11 %    6 %    4 %    -2 % 

Cardiovascular

    1,828    1,933    3,761    1,948    5,709    1,942    7,651    1,892    2,050    3,942    2,055    5,997    2,118    8,115    9 %    6 %    3 %    -1 % 

Plavix

    1,308    1,387    2,695    1,439    4,134    1,469    5,603    1,435    1,539    2,974    1,554    4,528    1,618    6,146    10 %    10 %    2 %    —     

Avapro/Avalide

    305    335    640    334    974    316    1,290    302    313    615    329    944    339    1,283    7 %    -1 %    5 %    -3 % 

Virology

    734    791    1,525    824    2,349    812    3,161    794    848    1,642    890    2,532    981    3,513    21 %    11 %    4 %    -4 % 

Reyataz

    297    324    621    342    963    329    1,292    322    331    653    360    1,013    388    1,401    18 %    8 %    5 %    -4 % 

Sustiva Franchise (a)

    273    282    555    294    849    300    1,149    292    312    604    315    919    358    1,277    19 %    11 %    1 %    -4 % 

Baraclude

    108    136    244    144    388    153    541    152    179    331    191    522    212    734    39 %    36 %    5 %    -4 % 

Oncology

    436    474    910    447    1,357    462    1,819    407    450    857    447    1,304    437    1,741    -5 %    -4 %    3 %    -1 % 

Erbitux

    187    196    383    184    567    182    749    164    173    337    179    516    167    683    -8 %    -9 %    —        —     

Sprycel

    66    76    142    82    224    86    310    88    107    195    107    302    119    421    38 %    36 %    9 %    -6 % 

Ixempra

    25    26    51    25    76    25    101    24    29    53    28    81    28    109    12 %    8 %    —        —     

Neuroscience

    498    575    1,073    607    1,680    641    2,321    621    660    1,281    668    1,949    727    2,676    13 %    15 %    2 %    -2 % 

Abilify (b)

    454    529    983    564    1,547    606    2,153    589    643    1,232    653    1,885    707    2,592    17 %    20 %    2 %    -2 % 

Immunoscience

    87    106    193    119    312    129    441    124    148    272    162    434    168    602    30 %    37 %    2 %    -2 % 

Orencia

    87    106    193    119    312    129    441    124    148    272    162    434    168    602    30 %    37 %    2 %    -2 % 

Metabolics

    25    27    52    30    82    22    104    25    36    61    52    113    30    143    36 %    38 %    -1 %    1 % 

Onglyza

    —      —      —      —      —      —      —      —      —      —      20    20    4    24    N/A      N/A      N/A      N/A   

 

* In excess of +/- 200%
(a) The Sustiva Franchise includes sales of Sustiva, as well as revenue of bulk efavirenz included in the combination therapy, Atripla.
(b) Includes alliance revenue from the co-promotional agreement with Otsuka Pharmaceutical Co., Ltd.

 

6

BRISTOL-MYERS SQUIBB COMPANY

DOMESTIC NET SALES FROM CONTINUING OPERATIONS BY PRODUCT

QUARTERLY SALES TREND ANALYSIS

($ in millions)

 

     2008    2009    % Change     % Change in U.S.
Total Prescription**		  
   1st Qtr    2nd Qtr    6 Months    3rd Qtr    9 Months    4th Qtr    Year    1st Qtr    2nd Qtr    6 Months    3rd Qtr    9 Months    4th Qtr    Year    Qtr
vs.
Qtr		     YTD
vs.
YTD		     Qtr
vs.
Qtr		     YTD
vs.
YTD		  

TOTAL

    2,459    2,625    5,084    $ 2,708    7,792    2,819    10,611    2,784    2,977    5,761    3,021    8,782    3,127    11,909    11 %    12 %     

Cardiovascular

    1,366    1,437    2,803      1,474    4,277    1,521    5,798    1,515    1,652    3,167    1,650    4,817    1,693    6,510    11 %    12 %     

Plavix

    1,139    1,207    2,346      1,263    3,609    1,311    4,920    1,296    1,393    2,689    1,406    4,095    1,461    5,556    11 %    13 %    4 %    4 % 

Avapro/Avalide

    174    184    358      189    547    188    735    173    179    352    186    538    184    722    -2 %    -2 %    -9 %    -9 % 

Virology

    378    376    754      405    1,159    407    1,566    406    404    810    424    1,234    466    1,700    14 %    9 %     

Reyataz

    160    159    319      176    495    172    667    176    169    345    186    531    196    727    14 %    9 %    9 %    8 % 

Sustiva Franchise (a)

    175    171    346      185    531    193    724    190    194    384    195    579    224    803    16 %    11 %    12 %    10 % 

Baraclude

    29    35    64      36    100    40    140    36    39    75    41    116    44    160    10 %    14 %    14 %    13 % 

Oncology

    237    254    491      234    725    246    971    218    233    451    233    684    219    903    -11 %    -7 %     

Erbitux

    185    193    378      182    560    179    739    162    171    333    175    508    163    671    -9 %    -9 %    N/A      N/A   

Sprycel

    20    21    41      21    62    30    92    30    33    63    28    91    32    123    7 %    34 %    14 %    18 % 

Ixempra

    25    26    51      24    75    23    98    22    26    48    26    74    25    99    9 %    1 %    N/A      N/A   

Neuroscience

    359    413    772      449    1,221    502    1,723    491    513    1,004    520    1,524    566    2,090    13 %    21 %     

Abilify (b)

    348    403    751      435    1,186    490    1,676    481    518    999    520    1,519    563    2,082    15 %    24 %    19 %    26 % 

Immunoscience

    73    87    160      97    257    106    363    99    116    215    126    341    126    467    19 %    29 %     

Orencia

    73    87    160      97    257    106    363    99    116    215    126    341    126    467    19 %    29 %    N/A      N/A   

Metabolics

    15    16    31      17    48    9    57    11    21    32    36    68    12    80    33 %    40 %     

Onglyza

    —      —      —        —      —      —      —      —      —      —      20    20    2    22    N/A      N/A      N/A      N/A   

 

*

In excess of +/- 200%

**

In the first quarter of 2009, the Company changed its service provider for U.S prescription data to Wolters Kluwer Health, Inc. (WK) for external reporting purposes and internal demand for most products. Prior to 2009, the Company used prescription data based on the Next-Generation Prescription Service Version 2.0 (NGPS) of the National Prescription Audit provided by IMS Health (IMS). The estimated total U.S. prescription change for the retail and mail order channels are calculated based on WK data on a weighted-average basis. The weighted-average basis reflects the fact that mail order prescriptions include a greater volume of product supplied compared to retail prescriptions, which on average are 90 days for mail order and 30 days for retail. The calculation is derived by multiplying WK mail order prescription data by a factor that approximates three and adding to this the WK retail prescriptions.

(a)

The Sustiva Franchise includes sales of Sustiva, as well as revenue of bulk efavirenz included in the combination therapy, Atripla. The change in U.S. total prescriptions growth for the Sustiva Franchise includes both branded Sustiva and Atripla prescription units.

(b)

Includes alliance revenue from the co-promotional agreement with Otsuka Pharmaceutical Co., Ltd.

 

7

BRISTOL-MYERS SQUIBB COMPANY

INTERNATIONAL NET SALES FROM CONTINUING OPERATIONS BY PRODUCT

QUARTERLY SALES TREND ANALYSIS

($ in millions)

 

     2008    2009    % Change     FX Impact  
   1st Qtr    2nd Qtr    6 Months    3rd Qtr    9 Months    4th Qtr    Year    1st Qtr    2nd Qtr    6 Months    3rd Qtr    9 Months    4th Qtr    Year    Qtr
vs.
Qtr		     YTD
vs.
YTD		     Qtr
vs.
Qtr		     YTD
vs.
YTD		  

TOTAL

    1,729    1,850    3,579    1,802    5,381    1,723    7,104    1,538    1,688    3,226    1,767    4,993    1,906    6,899    11 %    -3 %    9 %    -6 % 

Cardiovascular

    462    496    958    474    1,432    421    1,853    377    398    775    405    1,180    425    1,605    1 %    -13 %    11 %    -6 % 

Plavix

    169    180    349    176    525    158    683    139    146    285    148    433    157    590    -1 %    -14 %    11 %    -5 % 

Avapro/Avalide

    131    151    282    145    427    128    555    129    134    263    143    406    155    561    21 %    1 %    15 %    -6 % 

Virology

    356    415    771    419    1,190    405    1,595    388    444    832    466    1,298    515    1,813    27 %    14 %    8 %    -7 % 

Reyataz

    137    165    302    166    468    157    625    146    162    308    174    482    192    674    22 %    8 %    9 %    -8 % 

Sustiva Franchise (a)

    98    111    209    109    318    107    425    102    118    220    120    340    134    474    25 %    12 %    4 %    -11 % 

Baraclude

    79    101    180    108    288    113    401    116    140    256    150    406    168    574    49 %    43 %    8 %    -5 % 

Oncology

    199    220    419    213    632    216    848    189    217    406    214    620    218    838    1 %    -1 %    6 %    -2 % 

Erbitux

    2    3    5    2    7    3    10    2    2    4    4    8    4    12    33 %    20 %    2 %    -4 % 

Sprycel

    46    55    101    61    162    56    218    58    74    132    79    211    87    298    55 %    37 %    16 %    -9 % 

Ixempra

    —      —      —      1    1    2    3    2    3    5    2    7    3    10    50 %    *      N/A      N/A   

Neuroscience

    139    162    301    158    459    139    598    130    147    277    148    425    161    586    16 %    -2 %    10 %    -8 % 

Abilify (b)

    106    126    232    129    361    116    477    108    125    233    133    366    144    510    24 %    7 %    11 %    -9 % 

Immunoscience

    14    19    33    22    55    23    78    25    32    57    36    93    42    135    83 %    73 %    19 %    -9 % 

Orencia

    14    19    33    22    55    23    78    25    32    57    36    93    42    135    83 %    73 %    19 %    -9 % 

Metabolics

    10    11    21    13    34    13    47    14    15    29    16    45    18    63    38 %    34 %    -1 %    2 % 

Onglyza

    —      —      —      —      —      —      —      —      —      —      —      —      2    2    N/A      N/A      N/A      N/A   

 

*

In excess of +/- 200%

(a)

The Sustiva Franchise includes sales of Sustiva, as well as revenue of bulk efavirenz included in the combination therapy, Atripla.

(b)

Includes alliance revenue from the co-promotional agreement with Otsuka Pharmaceutical Co., Ltd.

 

8

BRISTOL-MYERS SQUIBB COMPANY

RECONCILIATION OF GAAP RESULTS OF CONTINUING OPERATIONS

TO NON-GAAP RESULTS OF CONTINUING OPERATIONS

FOR THE THREE MONTHS ENDED MARCH 31, 2008

(Unaudited, amounts in millions except per share data)

 

     Q1 2008  
     GAAP     Specified
Items		     Non
GAAP		  

Net Sales

    $ 4,188      —        $ 4,188   

Cost of products sold

      1,318      (96 )      1,222   
                  

Gross Profit

      2,870      96        2,966   

Gross margin as a % of sales

      68.5 %    2.3 %      70.8 % 

Marketing, selling and administrative

      995      (15 )      980   

Advertising and product promotion

      235      —          235   
                  

Total SGA

      1,230      (15 )      1,215   

SG&A as a % of sales

      29.4 %    (0.4 )%      29.0 % 

Research and development

      766      (20 )      746   

R&D as a % of sales

      18.3 %    (0.5 )%      17.8 % 

Operating Margins

       
     874      131        1,005   

Operating Margins as a % of sales

      20.9 %    3.1 %      24.0 % 

Provision for restructuring, net

      10      (10 )      —     

Litigation expense, net

      —        —          —     

Equity in net income of affiliates

      (164 )    —          (164 ) 

Other income, net

      30      (32 )      (2 ) 
                  

Earnings from Continuing Operations Before Income Taxes

    $ 998      173      $ 1,171   

Provision for income taxes

      261      33        294   
                  

Net Earnings - Continuing Operations

    $ 737      140      $ 877   

Net Earnings - Continuing Operations Attributable to Noncontrolling Interest

      228          228   
                  

Net Earnings - Continuing Operations Attributable to Bristol-Myers Squibb Company

    $ 509      140      $ 649   

Contingently convertible debt interest expense and dividends attributable to unvested shares

      5          5   
                  

Net Earnings used for Diluted EPS Calc - Continuing Operations-Attributable to Bristol-Myers Squibb Company

    $ 514      140      $ 654   

Average Common Shares Outstanding - Diluted

      2,006          2,006   

Diluted EPS - Continuing Operations Attributable to Bristol-Myers Squibb Company

    $ 0.26      0.07      $ 0.33   

Net Earnings from Continuing Operations Attributable to Bristol-Myers Squibb Company as a % of sales

      12.2 %    3.3 %      15.5 % 

Effective Tax Rate

      26.2 %    (1.1 )%      25.1 % 

 

9

BRISTOL-MYERS SQUIBB COMPANY

RECONCILIATION OF GAAP RESULTS OF CONTINUING OPERATIONS

TO NON-GAAP RESULTS OF CONTINUING OPERATIONS

FOR THE THREE MONTHS ENDED JUNE 30, 2008

(Unaudited, amounts in millions except per share data)

 

     Q2 2008  
     GAAP     Specified
Items		     Non
GAAP		  

Net Sales

    $ 4,475      —        $ 4,475   

Cost of products sold

      1,398      (58 )      1,340   
                  

Gross Profit

      3,077      58        3,135   

Gross margin as a % of sales

      68.8 %    1.3 %      70.1 % 

Marketing, selling and administrative

      1,013      (21 )      992   

Advertising and product promotion

      325      —          325   
                  

Total SGA

      1,338      (21 )      1,317   

SG&A as a % of sales

      29.9 %    (0.5 )%      29.4 % 

Research and development

      809      (31 )      778   

R&D as a % of sales

      18.1 %    (0.7 )%      17.4 % 

Operating Margins

       
     930      110        1,040   

Operating Margins as a % of sales

      20.8 %    2.4 %      23.2 % 

Acquired in-process research and development

      32      (32 )      —     

Provision for restructuring, net

      29      (29 )      —     

Litigation expense, net

      2      (2 )      —     

Equity in net income of affiliates

      (150 )    —          (150 ) 

Other income, net

      (16 )    2        (14 ) 
                  

Earnings from Continuing Operations Before Income Taxes

    $ 1,033      171      $ 1,204   

Provision for income taxes

      193      34        227   
                  

Net Earnings - Continuing Operations

    $ 840      137      $ 977   

Net Earnings - Continuing Operations Attributable to Noncontrolling Interest

      239          239   
                  

Net Earnings - Continuing Operations Attributable to Bristol-Myers Squibb Company

    $ 601      137      $ 738   

Contingently convertible debt interest expense and dividends attributable to unvested shares

      1          1   
                  

Net Earnings used for Diluted EPS Calc - Continuing Operations-Attributable to Bristol-Myers Squibb Company

    $ 602      137      $ 739   

Average Common Shares Outstanding - Diluted

      2,006          2,006   

Diluted EPS - Continuing Operations Attributable to Bristol-Myers Squibb Company

    $ 0.30      0.07      $ 0.37   

Net Earnings from Continuing Operations Attributable to Bristol-Myers Squibb Company as a % of sales

      13.4 %    3.1 %      16.5 % 

Effective Tax Rate

      18.7 %    0.2 %      18.9 % 

 

10

BRISTOL-MYERS SQUIBB COMPANY

RECONCILIATION OF GAAP RESULTS OF CONTINUING OPERATIONS

TO NON-GAAP RESULTS OF CONTINUING OPERATIONS

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2008

(Unaudited, amounts in millions except per share data)

 

     Q3 2008  
     GAAP     Specified
Items		     Non
GAAP		  

Net Sales

    $ 4,510      —        $ 4,510   

Cost of products sold

      1,346      (53 )      1,293   
                  

Gross Profit

      3,164      53        3,217   

Gross margin as a % of sales

      70.2 %    1.1 %      71.3 % 

Marketing, selling and administrative

      1,034      (28 )      1,006   

Advertising and product promotion

      265      —          265   
                  

Total SGA

      1,299      (28 )      1,271   

SG&A as a % of sales

      28.8 %    (0.6 )%      28.2 % 

Research and development

      816      (37 )      779   

R&D as a % of sales

      18.1 %    (0.8 )%      17.3 % 

Operating Margins

       
     1,049      118        1,167   

Operating Margins as a % of sales

      23.3 %    2.6 %      25.9 % 

Provision for restructuring, net

      25      (25 )      —     

Litigation expense, net

      30      (30 )      —     

Equity in net income of affiliates

      (164 )    —          (164 ) 

Other income, net

      167      (226 )      (59 ) 
                  

Earnings from Continuing Operations Before Income Taxes

    $ 991      399      $ 1,390   

Provision for income taxes

      266      83        349   
                  

Net Earnings - Continuing Operations

    $ 725      316      $ 1,041   

Net Earnings - Continuing Operations Attributable to Noncontrolling Interest

      257          257   
                  

Net Earnings - Continuing Operations Attributable to Bristol-Myers Squibb Company

    $ 468      316      $ 784   

Contingently convertible debt interest expense and dividends attributable to unvested shares

      1          1   
                  

Net Earnings used for Diluted EPS Calc - Continuing Operations-Attributable to Bristol-Myers Squibb Company

    $ 469      316      $ 785   

Average Common Shares Outstanding - Diluted

      2,002          2,002   

Diluted EPS - Continuing Operations Attributable to Bristol-Myers Squibb Company

    $ 0.23      0.16      $ 0.39   

Net Earnings from Continuing Operations Attributable to Bristol-Myers Squibb Company as a % of sales

      10.4 %    7.0 %      17.4 % 

Effective Tax Rate

      26.8 %    (1.7 )%      25.1 % 

 

11

BRISTOL-MYERS SQUIBB COMPANY

RECONCILIATION OF GAAP RESULTS OF CONTINUING OPERATIONS

TO NON-GAAP RESULTS OF CONTINUING OPERATIONS

FOR THE THREE MONTHS ENDED DECEMBER 31, 2008

(Unaudited, amounts in millions except per share data)

 

     Q4 2008  
     GAAP     Specified
Items		     Non
GAAP		  

Net Sales

    $ 4,542      —        $ 4,542   

Cost of products sold

      1,254      (42 )      1,212   
                  

Gross Profit

      3,288      42        3,330   

Gross margin as a % of sales

      72.4 %    0.9 %      73.3 % 

Marketing, selling and administrative

      1,098      (45 )      1,053   

Advertising and product promotion

      356      —          356   
                  

Total SGA

      1,454      (45 )      1,409   

SG&A as a % of sales

      32.0 %    (1.0 )%      31.0 % 

Research and development

      1,121      (273 )      848   

R&D as a % of sales

      24.7 %    (6.0 )%      18.7 % 

Operating Margins

       
     713      360        1,073   

Operating Margins as a % of sales

      15.7 %    7.9 %      23.6 % 

Acquired in-process research and development

      —        —          —     

Provision for restructuring, net

      151      (151 )      —     

Litigation expense, net

      1      (1 )      —     

Gain on sale of Imclone shares

      (895 )    895        —     

Equity in net income of affiliates

      (139 )    —          (139 ) 

Other income, net

      (159 )    137        (22 ) 
                  

Earnings from Continuing Operations Before Income Taxes

    $ 1,754      (520 )    $ 1,234   

Provision for income taxes

      370      (205 )      165   
                  

Net Earnings - Continuing Operations

    $ 1,384      (315 )    $ 1,069   

Net Earnings - Continuing Operations Attributable to Noncontrolling Interest

      265          265   
                  

Net Earnings - Continuing Operations Attributable to Bristol-Myers Squibb Company

    $ 1,119      (315 )    $ 804   

Contingently convertible debt interest expense and dividends attributable to unvested shares

      (5 )        (5 ) 
                  

Net Earnings used for Diluted EPS Calc - Continuing Operations-Attributable to Bristol-Myers Squibb Company

    $ 1,114      (315 )    $ 799   

Average Common Shares Outstanding - Diluted

      1,980          1,980   

Diluted EPS - Continuing Operations Attributable to Bristol-Myers Squibb Company

    $ 0.56      (0.16 )    $ 0.40   

Net Earnings from Continuing Operations Attributable to Bristol-Myers Squibb Company as a % of sales

      24.6 %    (6.9 )%      17.7 % 

Effective Tax Rate

      21.1 %    (7.7 )%      13.4 % 

 

12

BRISTOL-MYERS SQUIBB COMPANY

RECONCILIATION OF GAAP RESULTS OF CONTINUING OPERATIONS

TO NON-GAAP RESULTS OF CONTINUING OPERATIONS

FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2008

(Unaudited, amounts in millions except per share data)

 

     DECEMBER YTD 2008  
     GAAP     Specified
Items		     Non
GAAP		  

Net Sales

    $ 17,715      —        $ 17,715   

Cost of products sold

      5,316      (249 )      5,067   
                  

Gross Profit

      12,399      249        12,648   

Gross margin as a % of sales

      70.0 %    1.4 %      71.4 % 

Marketing, selling and administrative

      4,140      (109 )      4,031   

Advertising and product promotion

      1,181      —          1,181   
                  

Total SGA

      5,321      (109 )      5,212   

SG&A as a % of sales

      30.0 %    (0.6 )%      29.4 % 

Research and development

      3,512      (361 )      3,151   

R&D as a % of sales

      19.8 %    (2.0 )%      17.8 % 

Operating Margins

       
     3,566      719        4,285   

Operating Margins as a % of sales

      20.1 %    4.1 %      24.2 % 

Acquired in-process research and development

      32      (32 )      —     

Provision for restructuring, net

      215      (215 )      —     

Litigation expense, net

      33      (33 )   

Gain on sale of Imclone shares

      (895 )    895        —     

Equity in net income of affiliates

      (617 )    —          (617 ) 

Other income, net

      22      (119 )      (97 ) 

Earnings from Continuing Operations Before Income Taxes

    $ 4,776      223      $ 4,999   

Provision for income taxes

      1,090      (55 )      1,035   
                  

Net Earnings - Continuing Operations

    $ 3,686      278      $ 3,964   

Net Earnings - Continuing Operations Attributable to Noncontrolling Interest

      989          989   
                  

Net Earnings - Continuing Operations Attributable to Bristol-Myers Squibb Company

    $ 2,697      278      $ 2,975   

Contingently convertible debt interest expense and dividends attributable to unvested shares

      3          3   
                  

Net Earnings used for Diluted EPS Calc - Continuing Operations-Attributable to Bristol-Myers Squibb Company

    $ 2,700      278      $ 2,978   

Average Common Shares Outstanding - Diluted

      1,999          1,999   

Diluted EPS - Continuing Operations Attributable to Bristol-Myers Squibb Company

    $ 1.35      0.14      $ 1.49   

Net Earnings from Continuing Operations Attributable to Bristol-Myers Squibb Company as a % of sales

      15.2 %    1.6 %      16.8 % 

Effective Tax Rate

      22.8 %    (2.1 )%      20.7 % 

 

13

BRISTOL-MYERS SQUIBB COMPANY

RECONCILIATION OF GAAP RESULTS OF CONTINUING OPERATIONS

TO NON-GAAP RESULTS OF CONTINUING OPERATIONS

FOR THE THREE MONTHS ENDED MARCH 31, 2009

(Unaudited, amounts in millions except per share data)

 

     Q1 2009  
     GAAP     Specified
Items		     Non
GAAP		  

Net Sales

    $ 4,322      —        $ 4,322   

Cost of products sold

      1,165      (34 )      1,131   
                  

Gross Profit

      3,157      34        3,191   

Gross margin as a % of sales

      73.0 %    0.8 %      73.8 % 

Marketing, selling and administrative

      901      (20 )      881   

Advertising and product promotion

      248      —          248   
                  

Total SGA

      1,149      (20 )      1,129   

SG&A as a % of sales

      26.6 %    (0.5 )%      26.1 % 

Research and development

      908      (145 )      763   

R&D as a % of sales

      21.0 %    (3.3 )%      17.7 % 

Operating Margins

       
     1,100      199        1,299   

Operating Margins as a % of sales

      25.5 %    4.6 %      30.1 % 

Provision for restructuring, net

      19      (19 )      —     

Litigation expense, net

      104      (104 )   

Equity in net income of affiliates

      (146 )    —          (146 ) 

Other income, net

      (72 )    49        (23 ) 
                  

Earnings from Continuing Operations Before Income Taxes

    $ 1,195      273      $ 1,468   

Provision for income taxes

      275      93        368   
                  

Net Earnings - Continuing Operations

    $ 920      180      $ 1,100   

Net Earnings - Continuing Operations Attributable to Noncontrolling Interest

      271          271   
                  

Net Earnings - Continuing Operations Attributable to Bristol-Myers Squibb Company

    $ 649      180      $ 829   

Contingently convertible debt interest expense and dividends attributable to unvested shares

      (4 )        (4 ) 
                  

Net Earnings used for Diluted EPS Calc - Continuing Operations-Attributable to Bristol-Myers Squibb Company

    $ 645      180      $ 825   

Average Common Shares Outstanding - Diluted

      1,981          1,981   

Diluted EPS - Continuing Operations Attributable to Bristol-Myers Squibb Company

    $ 0.33      0.09      $ 0.42   

Net Earnings from Continuing Operations Attributable to Bristol-Myers Squibb Company as a % of sales

      15.0 %    4.2 %      19.2 % 

Effective Tax Rate

      23.0 %    2.1 %      25.1 % 

 

14

BRISTOL-MYERS SQUIBB COMPANY

RECONCILIATION OF GAAP RESULTS OF CONTINUING OPERATIONS

TO NON-GAAP RESULTS OF CONTINUING OPERATIONS

FOR THE THREE MONTHS ENDED JUNE 30, 2009

(Unaudited, amounts in millions except per share data)

 

     Q2 2009  
     GAAP     Specified
Items		     Non
GAAP		  

Net Sales

    $ 4,665      —        $ 4,665   

Cost of products sold

      1,225      (24 )      1,201   
                  

Gross Profit

      3,440      24        3,464   

Gross margin as a % of sales

      73.7 %    0.6 %      74.3 % 

Marketing, selling and administrative

      922      (25 )      897   

Advertising and product promotion

      298      —          298   
                  

Total SGA

      1,220      (25 )      1,195   

SG&A as a % of sales

      26.2 %    (0.6 )%      25.6 % 

Research and development

      811      (29 )      782   

R&D as a % of sales

      17.4 %    (0.6 )%      16.8 % 

Operating Margins

       
     1,409      78        1,487   

Operating Margins as a % of sales

      30.2 %    1.7 %      31.9 % 

Provision for restructuring, net

      19      (19 )      —     

Litigation expense, net

      28      (28 )   

Equity in net income of affiliates

      (150 )    —          (150 ) 

Other income, net

      (10 )    (3 )      (13 ) 
                  

Earnings from Continuing Operations Before Income Taxes

    $ 1,522      128      $ 1,650   

Provision for income taxes

      353      42        395   
                  

Net Earnings - Continuing Operations

    $ 1,169      86      $ 1,255   

Net Earnings - Continuing Operations Attributable to Noncontrolling Interest

      289          289   
                  

Net Earnings - Continuing Operations Attributable to Bristol-Myers Squibb Company

    $ 880      86      $ 966   

Contingently convertible debt interest expense and dividends attributable to unvested shares

      (5 )        (5 ) 
                  

Net Earnings used for Diluted EPS Calc - Continuing Operations-Attributable to Bristol-Myers Squibb Company

    $ 875      86      $ 961   

Average Common Shares Outstanding - Diluted

      1,983          1,983   

Diluted EPS - Continuing Operations Attributable to Bristol-Myers Squibb Company

    $ 0.44      0.04      $ 0.48   

Net Earnings from Continuing Operations Attributable to Bristol-Myers Squibb Company as a % of sales

      18.9 %    1.8 %      20.7 % 

Effective Tax Rate

      23.2 %    0.7 %      23.9 % 

 

15

BRISTOL-MYERS SQUIBB COMPANY

RECONCILIATION OF GAAP RESULTS OF CONTINUING OPERATIONS

TO NON-GAAP RESULTS OF CONTINUING OPERATIONS

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2009

(Unaudited, amounts in millions except per share data)

 

     Q3 2009  
     GAAP     Specified
Items		     Non
GAAP		  

Net Sales

    $ 4,788      —        $ 4,788   

Cost of products sold

      1,317      (30 )      1,287   
                  

Gross Profit

      3,471      30        3,501   

Gross margin as a % of sales

      72.5 %    0.6 %      73.1 % 

Marketing, selling and administrative

      953      (20 )      933   

Advertising and product promotion

      256      —          256   
                  

Total SGA

      1,209      (20 )      1,189   

SG&A as a % of sales

      25.3 %    (0.5 )%      24.8 % 

Research and development

      820      —          820   

R&D as a % of sales

      17.1 %    —          17.1 % 

Operating Margins

       
     1,442      50        1,492   

Operating Margins as a % of sales

      30.1 %    1.1 %      31.2 % 

Provision for restructuring, net

      51      (51 )      —     

Litigation expense, net

      —        —       

Equity in net income of affiliates

      (139 )    —          (139 ) 

Other income, net

      (35 )    23        (12 ) 
                  

Earnings from Continuing Operations Before Income Taxes

    $ 1,565      78      $ 1,643   

Provision for income taxes

      366      26        392   
                  

Net Earnings - Continuing Operations

    $ 1,199      52      $ 1,251   

Net Earnings - Continuing Operations Attributable to Noncontrolling Interest

      307          307   
                  

Net Earnings - Continuing Operations Attributable to Bristol-Myers Squibb Company

    $ 892      52      $ 944   

Contingently convertible debt interest expense and dividends attributable to unvested shares

      (5 )        (5 ) 
                  

Net Earnings used for Diluted EPS Calc - Continuing Operations-Attributable to Bristol-Myers Squibb Company

    $ 887      52      $ 939   

Average Common Shares Outstanding - Diluted

      1,984          1,984   

Diluted EPS - Continuing Operations Attributable to Bristol-Myers Squibb Company

    $ 0.45      0.02      $ 0.47   

Net Earnings from Continuing Operations Attributable to Bristol-Myers Squibb Company as a % of sales

      18.6 %    1.1 %      19.7 % 

Effective Tax Rate

      23.4 %    0.5 %      23.9 % 

 

16

BRISTOL-MYERS SQUIBB COMPANY

RECONCILIATION OF GAAP RESULTS OF CONTINUING OPERATIONS

TO NON-GAAP RESULTS OF CONTINUING OPERATIONS

FOR THE THREE MONTHS ENDED DECEMBER 31, 2009

(Unaudited, amounts in millions except per share data)

 

     Q4 2009  
     GAAP     Specified
Items		     Non
GAAP		  

Net Sales

    $ 5,033      —        $ 5,033   

Cost of products sold

      1,433      (35 )      1,398   
                  

Gross Profit

      3,600      35        3,635   

Gross margin as a % of sales

      71.5 %    0.7 %      72.2 % 

Marketing, selling and administrative

      1,170      (145 )      1,025   

Advertising and product promotion

      334      —          334   
                  

Total SGA

      1,504      (145 )      1,359   

SG&A as a % of sales

      29.9 %    (2.9 )%      27.0 % 

Research and development

      1,108      (173 )      935   

R&D as a % of sales

      22.0 %    (3.4 )%      18.6 % 

Operating Margins

       
     988      353        1,341   

Operating Margins as a % of sales

      19.6 %    7.0 %      26.6 % 

Provision for restructuring, net

      47      (47 )      —     

Litigation expense, net

      —        —          —     

Equity in net income of affiliates

      (115 )    —          (115 ) 

Other income, net

      (264 )    246        (18 ) 
                  

Earnings from Continuing Operations Before Income Taxes

    $ 1,320      154      $ 1,474   

Provision for income taxes

      188      44        232   
                  

Net Earnings - Continuing Operations

    $ 1,132      110      $ 1,242   

Net Earnings - Continuing Operations Attributable to Noncontrolling Interest

      314          314   
                  

Net Earnings - Continuing Operations Attributable to Bristol-Myers Squibb Company

    $ 818      110      $ 928   

Contingently convertible debt interest expense and dividends attributable to unvested shares

      (4 )        (4 ) 
                  

Net Earnings used for Diluted EPS Calc - Continuing Operations-Attributable to Bristol-Myers Squibb Company

    $ 814      110      $ 924   

Average Common Shares Outstanding - Diluted

      1,967          1,967   

Diluted EPS - Continuing Operations Attributable to Bristol-Myers Squibb Company

    $ 0.41      0.06      $ 0.47   

Net Earnings from Continuing Operations Attributable to Bristol-Myers Squibb Company as a % of sales

      16.3 %    2.1 %      18.4 % 

Effective Tax Rate

      14.2 %    1.5 %      15.7 % 

 

17

BRISTOL-MYERS SQUIBB COMPANY

RECONCILIATION OF GAAP RESULTS OF CONTINUING OPERATIONS

TO NON-GAAP RESULTS OF CONTINUING OPERATIONS

FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2009

(Unaudited, amounts in millions except per share data)

 

     DECEMBER YTD 2009  
     GAAP     Specified
Items		     Non
GAAP		  

Net Sales

    $ 18,808      —        $ 18,808   

Cost of products sold

      5,140      (123 )      5,017   
                  

Gross Profit

      13,668      123        13,791   

Gross margin as a % of sales

      72.7 %    0.6 %      73.3 % 

Marketing, selling and administrative

      3,946      (210 )      3,736   

Advertising and product promotion

      1,136      —          1,136   
                  

Total SGA

      5,082      (210 )      4,872   

SG&A as a % of sales

      27.0 %    (1.1 )%      25.9 % 

Research and development

      3,647      (347 )      3,300   

R&D as a % of sales

      19.4 %    (1.9 )%      17.5 % 

Operating Margins

       
     4,939      680        5,619   

Operating Margins as a % of sales

      26.3 %    3.6 %      29.9 % 

Provision for restructuring, net

      136      (136 )      —     

Litigation expense, net

      132      (132 )      —     

Equity in net income of affiliates

      (550 )    —          (550 ) 

Other income, net

      (381 )    315        (66 ) 
                  

Earnings from Continuing Operations Before Income Taxes

    $ 5,602      633      $ 6,235   

Provision for income taxes

      1,182      205        1,387   
                  

Net Earnings - Continuing Operations

    $ 4,420      428      $ 4,848   

Net Earnings - Continuing Operations Attributable to Noncontrolling Interest

      1,181          1,181   
                  

Net Earnings - Continuing Operations Attributable to Bristol-Myers Squibb Company

    $ 3,239      428      $ 3,667   

Contingently convertible debt interest expense and dividends attributable to unvested shares

      (17 )        (17 ) 
                  

Net Earnings used for Diluted EPS Calc - Continuing Operations-Attributable to Bristol-Myers Squibb Company

    $ 3,222      428      $ 3,650   

Average Common Shares Outstanding - Diluted

      1,978          1,978   

Diluted EPS - Continuing Operations Attributable to Bristol-Myers Squibb Company

    $ 1.63      0.22      $ 1.85   

Net Earnings from Continuing Operations Attributable to Bristol-Myers Squibb Company as a % of sales

      17.2 %    2.3 %      19.5 % 

Effective Tax Rate

      21.1 %    1.1 %      22.2 % 

 

18

BRISTOL-MYERS SQUIBB COMPANY

SPECIFIED ITEMS

FOR THE THREE MONTHS ENDED DECEMBER 31, 2009 AND 2008

($ in millions)

Three months ended December 31, 2009

 

     Cost of
products
sold		    Marketing
selling and
administrative		    Research
and
development		    Provision for
restructuring,
net		    Other
(income)/
expense,
net		     Total  

Productivity Transformation Initiative:

                 

Downsizing and streamlining of worldwide operations

    $ —      $ —      $ —      $ 42    $ —        $ 42   

Accelerated depreciation, asset impairment, and other shutdown costs

      29      —        —        5      —          34   

Pension settlements/curtailments

      —        —        —        —        11        11   

Process standardization implementation costs

      —        45      —        —        —          45   

Gain on sale of product lines, businesses and assets

      —        —        —        —        (288 )      (288 ) 
                                            

Total PTI

      29      45      —        47      (277 )      (156 ) 

Other:

                 

Accelerated depreciation

      6      —        —        —        —          6   

BMS foundation funding initiative

      —        100      —        —        —          100   

Loss on sale of investments

      —        —              31        31   

Upfront and milestone payments

      —        —        173      —        —          173   
                                            

Total

    $ 35    $ 145    $ 173    $ 47    $ (246 )      154   
                                      

Income taxes on items above

                    (44 ) 
                      

Decrease to Net Earnings

                  $ 110   
                      

Three months ended December 31, 2008

 

     Cost of
products
sold		    Marketing
selling and
administrative		    Research
and
development		    Provision for
restructuring,
net		    Litigation
expense,
net		    Gain on
sale of
Imclone
shares		     Other
(income)/
expense,
net		     Total  

Productivity Transformation Initiative:

                      

Downsizing and streamlining of worldwide operations

    $ —      $ —      $ —      $ 122    $ —      $ —        $ —        $ 122   

Accelerated depreciation and other shutdown costs

      6      —        —        20      —        —          8        34   

Pension settlements/curtailments

      9      —        —        —        —        —          8        17   

Process standardization implementation costs

      —        45      —        —        —        —          —          45   

Termination of lease contracts

      —        —        —        9      —        —          6        15   

Gain on sale of product lines and businesses

      —        —        —        —        —        —          (159 )      (159 ) 
                                                           
     15      45      —        151      —        —          (137 )      74   

Other:

                      

Litigation charges

      —        —        —        —        1        —          1   

Insurance Recovery

      —        —        —        —        —        —          (20 )      (20 ) 

Upfront and milestone payments

      —        —        260      —        —        —          —          260   

Asset impairment

      27      —        13      —        —        —          —          40   

ARS impairment charge

      —        —        —        —        —        —          77        77   

Debt buyback and swap terminations

      —        —        —        —        —        —          (57 )      (57 ) 

Gain on sale of ImClone shares

      —        —        —        —        —        (895 )      —          (895 ) 
                                                           
   $ 42    $ 45    $ 273    $ 151    $ 1    $ (895 )    $ (137 )      (520 ) 
                                                     

Income taxes on items above

                         205   
                           

Increase to Net Earnings

                       $ (315 ) 
                           

 

19

BRISTOL-MYERS SQUIBB COMPANY

SPECIFIED ITEMS

FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2009 AND 2008

($ in millions)

Twelve months ended December 31, 2009

 

     Cost of
products
sold		    Marketing
selling and
administrative		    Research
and
development		    Provision for
restructuring,
net		    Litigation
expense,
net		    Other
(income)/
expense,
net		     Total  

Productivity Transformation Initiative:

                    

Downsizing and streamlining of worldwide operations

    $ —      $ —      $ —      $ 122    $ —      $ —        $ 122   

Accelerated depreciation, asset impairment, and other shutdown costs

      109      —        —        14      —        —          123   

Pension settlements/curtailments

      —        —        —        —        —        36        36   

Process standardization implementation costs

      —        110      —        —        —        —          110   

Gain on sale of product lines, businesses and assets

      —        —        —        —        —        (360 )      (360 ) 
                                                   

Total PTI

      109      110      —        136      —        (324 )      31   

Other:

                    

Litigation charges

      —        —        —        —        132      —          132   

Accelerated depreciation

      6      —        —        —        —        —          6   

BMS foundation funding initiative

      —        100      —        —        —        —          100   

Loss on sale of investments

         —                 31        31   

Upfront and milestone payments

      —        —        347      —        —        —          347   

Medarex acquisition

      —        —        —        —        —        (10 )      (10 ) 

Debt buyback and swap terminations

      —        —        —        —        —        (7 )      (7 ) 

Product liability

      8      —        —        —        —        (5 )      3   
                                                   

Total

    $ 123    $ 210    $ 347    $ 136    $ 132    $ (315 )      633   
                                             

Income taxes on items above

                       (205 ) 
                         

Decrease to Net Earnings

                     $ 428   
                         

Twelve months ended December 31, 2008

 

     Cost of
products
sold		    Marketing
selling and
administrative		    Research
and
development		    Acquired
in-process
research
and
development		    Provision for
restructuring,
net		    Litigation
expense,
net		    Gain on
sale of
Imclone
shares		     Other
(income)/
expense,
net		     Total  

Productivity Transformation Initiative:

                         

Downsizing and streamlining of worldwide operations

    $ —      $ —      $ —      $ —      $ 186    $ —      $ —        $ —        $ 186   

Accelerated depreciation and other shutdown costs

      213      —        —        —        20      —        —          8        241   

Pension settlements/curtailments

      9      —        —        —        —        —        —          8        17   

Process standardization implementation costs

      —        109      —        —        —        —        —          —          109   

Gain on sale and leaseback of properties

      —        —        —        —        —        —        —          (9 )      (9 ) 

Termination of lease contracts

      —        —        —        —        9      —        —          6        15   

Gain on sale of product lines and businesses

      —        —        —        —        —        —          (159 )      (159 ) 
                                                                  
     222      109      —        —        215      —        —          (146 )      400   

Other:

                         

Litigation settlement

      —        —        —        —        —        33      —          —          33   

Insurance Recovery

      —        —        —        —        —        —        —          (20 )      (20 ) 

Product liability

      —        —        —        —        —        —        —          18        18   

Upfront and milestone payments and acquired in-process research and development

      —        —        348      32      —        —        —          —          380   

Asset impairment

      27      —        13      —        —        —        —          —          40   

ARS impairment charge

      —        —        —        —        —        —        —          324        324   

Debt buyback and swap terminations

      —        —        —        —        —        —        —          (57 )      (57 ) 

Gain on sale of ImClone shares

      —        —        —        —        —        —        (895 )      —          (895 ) 
                                                                  
   $ 249    $ 109    $ 361    $ 32    $ 215    $ 33    $ (895 )    $ 119        223   
                                                            

Income taxes on items above

                            55   
                              

Decrease to Net Earnings

                          $ 278   
                              

 

20

BRISTOL-MYERS SQUIBB COMPANY

SELECTED BALANCE SHEET INFORMATION

($ in millions)

 

        March 31,
    2008		           June 30,
      2008		     September 30,
2008		   December 31,
2008		       March 31,
    2009		         June 30,
      2009		   September 30,
2009		   December 31,
2009

Cash and cash equivalents

   $ 2,443      $ 4,047      $ 7,173   $ 7,976   $ 7,832   $ 7,507   $ 6,367   $ 7,683

Marketable securities – current

     194        355        258     289     1,088     613     302     831

Marketable securities – long term

     455        386        297     188     184     983     1,202     1,369

Short-term borrowings

     1,781        1,799        135     154     156     124     286     231

Long-term debt

     4,660        6,021        6,120     6,585     6,492     6,235     6,307     6,130
                                                   

Net (debt) / cash

   $ (3,349 )    $ (3,032 )    $ 1,473   $ 1,714   $ 2,456   $ 2,744   $ 1,278   $ 3,522

 

21

BRISTOL-MYERS SQUIBB COMPANY

2010 FULL YEAR PROJECTED DILUTED EPS FROM CONTINUING OPERATIONS

EXCLUDING PROJECTED SPECIFIED ITEMS

 

     Full Year 2010

Projected Diluted Earnings Attributable to Shareholders per Common Share — GAAP

    $1.94 to $2.04

Projected Specified Items:

   

Downsizing and streamlining of worldwide operations

    0.11

Accelerated depreciation and other shutdown costs

    0.08

Upfront and milestone payments and other

    0.02
    

Total

    0.21
    

Projected Diluted Earnings Attributable to Shareholders per Common Share—Non-GAAP

    $2.15 to $2.25
    

Revenue growth is projected in the mid single digit range.

Gross margin on a GAAP basis for the full year 2009 was 72.7%, which included specified items of $123 million and had a 0.6% adverse impact on gross margin in aggregate. On a non-GAAP basis, for the full year 2009 gross margin was 73.3%. On a non-GAAP basis, the Company projects gross margin for the full year 2010 to remain consistent with last year. There is no reasonably accessible or reliable comparable GAAP measure for this forward-looking information on gross margin. See GAAP to Non-GAAP PL Reconciliation - December YTD tab.

Research and Development expenses on a GAAP basis for the full year 2009 were $3,647 million, which included specified items of $347 million. On a non-GAAP basis, for the full year 2009 research and development expenses were $3,300 million. On a non-GAAP basis, the Company projects research and development expenses for the full year 2010 to increase in the mid to high single digit range compared to 2009. There is no reasonably accessible or reliable comparable GAAP measure for this forward-looking information on research and development. See GAAP to Non-GAAP PL Reconciliation - December YTD tab.

Marketing, selling and administrative expenses, on a GAAP basis for the full year 2009 were $3,946 million, which included specified items of $210 million. On a non-GAAP basis, for the full year 2009 marketing, selling and administrative expenses were $3,736 million. On a non-GAAP basis, the Company projects marketing, selling and administrative expenses for the full year 2010 to remain flat compared to 2009. There is no reasonably accessible or reliable comparable GAAP measure for this forward-looking information on marketing, selling and administrative expense. See GAAP to Non-GAAP PL Reconciliation - December YTD tab.

The effective tax rate on a GAAP basis for the full year 2009 was 21.1%, which included specified items of $205 million in the tax provision, and had a 1.1% impact on the effective tax rate in aggregate. On a non-GAAP basis, for the full year 2009 effective tax rate was 22.2%. On a non-GAAP basis, based on historical trends in 2009 the Company projects the annual effective tax rate between 23% and 24% for the full year 2010. There is no reasonably accessible or reliable comparable GAAP measure for this forward-looking information on the tax rate. See GAAP to Non-GAAP PL Reconciliation - December YTD tab.

The GAAP results for the full year 2010 will include specified items that may occur and impact results, including expected restructuring and other charges related to implementation the Productivity Transformation Initiative (PTI), and other expected charges associated with downsizing and streamlining worldwide operations, accelerated depreciation and upfront and milestone payments. The productivity initiative, announced in December 2007 is expected to generate approximately $2.5 billion in cost reductions and avoidance on a pre-tax basis by 2012. Costs associated with the Productivity Transformation Initiative are $1.2 billion through the end of 2009, with aggregate costs estimated to be between $1.3 billion and $1.6 billion on a pre-tax basis. This amount does not include gains realized due to sales of assets. As the PTI projects are substantially complete and the Company expects to be within the above mentioned range, the Company will no longer separately identify PTI-related specified items beginning with the first quarter of 2010. The GAAP results for the full year 2010 could also include charges and recoveries relating to significant legal proceedings, debt retirement costs and other charges related to new transactions, additional upfront and milestone payments, copromotion or alliance charges and charges for in-process research and development related to new external development transactions, gains or losses from asset disposals, other restructuring activities, impairments to marketable securities and significant tax events. For a fuller discussion of certain of the litigation and other matters that could impact full year GAAP results, as well as the use of non-GAAP financial information, see Bristol-Myers Squibb Company Reports Financial Results For The Fourth Quarter and 12 Months of 2009, January 28, 2010, including “2010 Guidance” and “Use of Non-GAAP Financial Information” therein.

The Company has previously provided guidance that it expected non-GAAP EPS to grow at a minimum of 15 percent compound annual growth rate from the 2007 base through 2010 without rebasing for the sale of the ConvaTec business. If the company meets its expected 2010 non-GAAP EPS from continuing operations guidance, it will exceed the prior 15 percent minimum three-year annual growth rate guidance. There is no reasonably accessible or reliable comparable GAAP measure for this forward-looking information on earnings per share.

 

22

BRISTOL-MYERS SQUIBB COMPANY

RECONCILIATION OF GAAP EARNINGS FROM CONTINUING OPERATIONS

BEFORE NONCONTROLLING INTEREST & TAXES AND GAAP PRETAX PROFIT MARGIN

TO NON-GAAP PRETAX PROFIT AND NON-GAAP PRETAX PROFIT MARGIN

FOR THE YEAR ENDED DECEMBER 31, 2009

(unaudited, dollar amounts in millions)

 

Net Sales

    $ 18,808   
        

Earnings from Continuing Operations Before Noncontrolling Interest & Taxes

    $ 5,602   

Earnings from Continuing Operations Before Noncontrolling Interest & Taxes as a % of Net Sales (GAAP Pretax Profit Margin)

      29.8 % 

Excluding Specified Items1

      633   
        

Non-GAAP Earnings from Continuing Operations Before Noncontrolling Interest & Taxes Excluding Specified Items

      6,235   

Noncontrolling Interest 2

      1,743   
        

Non-GAAP Earnings from Continuing Operations Before Taxes (Pretax Profit)

    $ 4,492   

Non-GAAP Earnings from Continuing Operations Before Taxes as a % of Net Sales (Pretax Profit Margin)

      23.9 % 

 

1

Please refer to the Specified Items YTD tab for detail of specified items.

2

Noncontrolling Interest is computed as follows:

 

Noncontrolling interest, pre-tax

    $ 1,743

Income taxes

      562
      

Noncontrolling interest, net of taxes

    $ 1,181
      

 

23