EX-99.2 3 q12017ex992.htm CERTAIN SUPPLEMENTAL INFORMATION Exhibit

Exhibit 99.2

BRISTOL-MYERS SQUIBB COMPANY
QUARTERLY TREND ANALYSIS OF REVENUES
(Unaudited, dollars in millions)
Revenues
 
2016
 
2017
 
% 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
    United States
 
$
2,537

 
$
2,688

 
$
5,225

 
$
2,790

 
$
8,015

 
$
2,705

 
$
10,720

 
$
2,738

 

 

 

 

 

 

 
8%
 
8%
 
—
 
—
    Europe
 
870

 
1,039

 
1,909

 
946

 
2,855

 
1,360

 
4,215

 
1,146

 

 

 

 

 

 

 
32%
 
32%
 
(5)%
 
(5)%
    Rest of the World
 
840

 
1,013

 
1,853

 
1,069

 
2,922

 
1,042

 
3,964

 
925

 

 

 

 

 

 

 
10%
 
10%
 
1%
 
1%
    Other
 
144

 
131

 
275

 
117

 
392

 
136

 
528

 
120

 

 

 

 

 

 

 
(17)%
 
(17)%
 
N/A
 
N/A
Total
 
$
4,391

 
$
4,871

 
$
9,262

 
$
4,922

 
$
14,184

 
$
5,243

 
$
19,427

 
$
4,929

 

 

 

 

 

 

 
12%
 
12%
 
(1)%
 
(1)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
% of Revenues
 
2016
 
2017
 
 
 
 
 
 
 
 
 
 
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
 
 
 
 
 
 
 
 
    United States
 
57.8
%
 
55.2
%
 
56.4
%
 
56.7
%
 
56.5
%
 
51.6
%
 
55.2
%
 
55.5
%
 

 

 

 

 

 

 
 
 
 
 
 
 
 
    Europe
 
19.8
%
 
21.3
%
 
20.6
%
 
19.2
%
 
20.1
%
 
25.9
%
 
21.7
%
 
23.3
%
 

 

 

 

 

 

 
 
 
 
 
 
 
 
    Rest of the World
 
19.1
%
 
20.8
%
 
20.0
%
 
21.7
%
 
20.6
%
 
19.9
%
 
20.4
%
 
18.8
%
 

 

 

 

 

 

 
 
 
 
 
 
 
 
    Other
 
3.3
%
 
2.7
%
 
3.0
%
 
2.4
%
 
2.8
%
 
2.6
%
 
2.7
%
 
2.4
%
 

 

 

 

 

 

 
 
 
 
 
 
 
 
Total
 
100.0
%
 
100.0
%
 
100.0
%
 
100.0
%
 
100.0
%
 
100.0
%
 
100.0
%
 
100.0
%
 

 

 

 

 

 

 
 
 
 
 
 
 
 


1

BRISTOL-MYERS SQUIBB COMPANY
EARNINGS FROM OPERATIONS
(Unaudited, dollars and shares in millions except per share data)
 
 
2016
 
2017
 
% 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 product sales
 
$
3,964

 
$
4,432

 
$
8,396

 
$
4,492

 
$
12,888

 
$
4,814

 
$
17,702

 
$
4,580

 

 

 

 

 

 

 
16%
 
16%
Alliance and other revenues
 
427

 
439

 
866

 
430

 
1,296

 
429

 
1,725

 
349

 

 

 

 

 

 

 
(18)%
 
(18)%
Total Revenues
 
$
4,391

 
$
4,871

 
$
9,262

 
$
4,922

 
$
14,184

 
$
5,243

 
$
19,427

 
$
4,929

 

 

 

 

 

 

 
12%
 
12%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of products sold
 
1,052

 
1,206

 
2,258

 
1,305

 
3,563

 
1,383

 
4,946

 
1,259

 

 

 

 

 

 

 
20%
 
20%
Marketing, selling and administrative
 
1,068

 
1,238

 
2,306

 
1,144

 
3,450

 
1,461

 
4,911

 
1,074

 

 

 

 

 

 

 
1%
 
1%
Research and development
 
1,136

 
1,266

 
2,402

 
1,138

 
3,540

 
1,400

 
4,940

 
1,288

 

 

 

 

 

 

 
13%
 
13%
Other (income)/expense
 
(520
)
 
(454
)
 
(974
)
 
(224
)
 
(1,198
)
 
(87
)
 
(1,285
)
 
(647
)
 

 

 

 

 

 

 
24%
 
24%
Total Expenses
 
2,736

 
3,256

 
5,992

 
3,363

 
9,355

 
4,157

 
13,512

 
2,974

 

 

 

 

 

 

 
9%
 
9%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings Before Income Taxes
 
$
1,655

 
$
1,615

 
$
3,270

 
$
1,559

 
$
4,829

 
$
1,086

 
$
5,915

 
$
1,955

 

 

 

 

 

 

 
18%
 
18%
Provision for Income Taxes
 
449

 
427

 
876

 
344

 
1,220

 
188

 
1,408

 
429

 

 

 

 

 

 

 
(4)%
 
(4)%
Net Earnings
 
$
1,206

 
$
1,188

 
$
2,394

 
$
1,215

 
$
3,609

 
$
898

 
$
4,507

 
$
1,526

 

 

 

 

 

 

 
27%
 
27%
Net Earnings/(Loss) Attributable to Noncontrolling Interest
 
11

 
22

 
33

 
13

 
46

 
4

 
50

 
(48
)
 

 

 

 

 

 

 
**
 
**
Net Earnings Attributable to BMS
 
$
1,195

 
$
1,166

 
$
2,361

 
$
1,202

 
$
3,563

 
$
894

 
$
4,457

 
$
1,574

 

 

 

 

 

 

 
32%
 
32%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted Earnings per Common Share*
 
$
0.71

 
$
0.69

 
$
1.41

 
$
0.72

 
$
2.12

 
$
0.53

 
$
2.65

 
$
0.94

 

 

 

 

 

 

 
32%
 
32%
Average Common Shares Outstanding - Diluted
 
1,680

 
1,679

 
1,679

 
1,679

 
1,679

 
1,680

 
1,680

 
1,671

 

 

 

 

 

 

 
(1)%
 
(1)%
Dividends declared per common share
 
$
0.38

 
$
0.38

 
$
0.76

 
$
0.38

 
$
1.14

 
$
0.39

 
$
1.53

 
$
0.39

 

 

 

 

 

 

 
3%
 
3%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2016
 
2017
 
 
 
 
% of Total Revenues
 
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
 
 
 
 
Gross Margin
 
76.0
%
 
75.2
%
 
75.6
%
 
73.5
%
 
74.9
%
 
73.6
%
 
74.5
%
 
74.5
%
 

 

 

 

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Ratios
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effective tax rate
 
27.1
%
 
26.4
%
 
26.8
%
 
22.1
%
 
25.3
%
 
17.3
%
 
23.8
%
 
21.9
%
 

 

 

 

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other (Income)/Expense
 
2016
 
2017
 
% 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
 
$
43

 
$
42

 
$
85

 
$
42

 
$
127

 
$
40

 
$
167

 
$
45

 

 

 

 

 

 

 
5
 %
 
5
 %
Investment income
 
(24
)
 
(25
)
 
(49
)
 
(32
)
 
(81
)
 
(24
)
 
(105
)
 
(33
)
 

 

 

 

 

 

 
38
 %
 
38
 %
Provision for restructuring
 
4

 
18

 
22

 
19

 
41

 
68

 
109

 
164

 

 

 

 

 

 

 
**

 
**

Litigation and other settlements
 
43

 
6

 
49

 
(1
)
 
48

 
(1
)
 
47

 
(484
)
 

 

 

 

 

 

 
**

 
**

Equity in net income of affiliates
 
(26
)
 
(20
)
 
(46
)
 
(19
)
 
(65
)
 
(12
)
 
(77
)
 
(18
)
 

 

 

 

 

 

 
(31
)%
 
(31
)%
Divestiture gains
 
(270
)
 
(283
)
 
(553
)
 
(21
)
 
(574
)
 
(2
)
 
(576
)
 
(127
)
 

 

 

 

 

 

 
(53
)%
 
(53
)%
Royalties and licensing income
 
(254
)
 
(167
)
 
(421
)
 
(158
)
 
(579
)
 
(140
)
 
(719
)
 
(199
)
 

 

 

 

 

 

 
(22
)%
 
(22
)%
Transition and other service fees
 
(53
)
 
(74
)
 
(127
)
 
(57
)
 
(184
)
 
(54
)
 
(238
)
 
(7
)
 

 

 

 

 

 

 
(87
)%
 
(87
)%
Pension charges
 
22

 
25

 
47

 
19

 
66

 
25

 
91

 
33

 

 

 

 

 

 

 
50
 %
 
50
 %
Intangible asset impairments
 
15

 
—

 
15

 
—

 
15

 
—

 
15

 
—

 

 

 

 

 

 

 
(100
)%
 
(100
)%
Equity investment impairment
 
—

 
45

 
45

 
—

 
45

 
—

 
45

 
—

 

 

 

 

 

 

 
—

 
—

Other
 
(20
)
 
(21
)
 
(41
)
 
(16
)
 
(57
)
 
13

 
(44
)
 
(21
)
 

 

 

 

 

 

 
5
 %
 
5
 %
 
 
$
(520
)
 
$
(454
)
 
$
(974
)
 
$
(224
)
 
$
(1,198
)
 
$
(87
)
 
$
(1,285
)
 
$
(647
)
 

 

 

 

 

 

 
24
 %
 
24
 %
*
Quarterly amounts may not add to the year-to-date totals due to rounding of individual calculations.
**
In excess of +/- 100%


2

BRISTOL-MYERS SQUIBB COMPANY
RECONCILIATION OF GAAP AND NON-GAAP GROWTH DOLLARS AND PERCENTAGES EXCLUDING FOREIGN EXCHANGE IMPACT
FOR THE PERIOD ENDED MARCH 31, 2017
(Unaudited, dollars in millions)

QUARTER-TO-DATE
 
2017
 
2016
 
Growth $
 
Growth %
 
Favorable /
(Unfavorable)
FX Impact $ *
 
2017
Excluding FX
 
Favorable /
(Unfavorable)
FX Impact % *
 
Growth %
Excluding FX
Revenues
 
$
4,929

 
$
4,391

 
$
538

 
12%
 
$
(39
)
 
$
4,968

 
(1)%
 
13%
Gross profit
 
3,670

 
3,339

 
331

 
10%
 
N/A

 
N/A

 
N/A
 
N/A
Gross profit excluding specified items(a)
 
3,670

 
3,343

 
327

 
10%
 
N/A

 
N/A

 
N/A
 
N/A
          Gross profit excluding specified items as a % of revenues
 
74.5
%
 
76.1
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Research and development
 
1,288

 
1,136

 
152

 
13%
 
4

 
1,292

 
1%
 
14%
Research and development excluding specified items(a)
 
1,091

 
998

 
93

 
9%
 
4

 
1,095

 
1%
 
10%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
         Research and development excluding specified items as a % of revenues
 
22.1
%
 
22.7
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a)
Refer to the Specified Items schedule for further details.
 
 
 
 
 
 
 
 
 
 
 
 
 
*
Foreign exchange impacts were derived by applying the prior period average currency rates to the current period sales and expenses.

3

BRISTOL-MYERS SQUIBB COMPANY
WORLDWIDE REVENUES
QUARTERLY REVENUES TREND ANALYSIS
(Unaudited, dollars in millions)
 
 
2016
 
2017
 
Growth $
 
% 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
 
Qtr vs. Qtr
 
YTD vs. YTD
Prioritized Brands
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Opdivo
 
$
704

 
$
840

 
$
1,544

 
$
920

 
$
2,464

 
$
1,310

 
$
3,774

 
$
1,127

 
 
 
 
 
 
 
 
 
 
 
 
 
$
423

 
$
423

 
60
 %
 
60
 %
Eliquis
 
734

 
777

 
1,511

 
884

 
2,395

 
948

 
3,343

 
1,101

 
 
 
 
 
 
 
 
 
 
 
 
 
367

 
367

 
50
 %
 
50
 %
Orencia(a)
 
475

 
593

 
1,068

 
572

 
1,640

 
625

 
2,265

 
535

 
 
 
 
 
 
 
 
 
 
 
 
 
60

 
60

 
13
 %
 
13
 %
Sprycel
 
407

 
451

 
858

 
472

 
1,330

 
494

 
1,824

 
463

 
 
 
 
 
 
 
 
 
 
 
 
 
56

 
56

 
14
 %
 
14
 %
Yervoy
 
263

 
241

 
504

 
285

 
789

 
264

 
1,053

 
330

 
 
 
 
 
 
 
 
 
 
 
 
 
67

 
67

 
25
 %
 
25
 %
Empliciti
 
28

 
34

 
62

 
41

 
103

 
47

 
150

 
53

 
 
 
 
 
 
 
 
 
 
 
 
 
25

 
25

 
89
 %
 
89
 %
Established Brands
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hepatitis C Franchise(b)
 
427

 
546

 
973

 
379

 
1,352

 
226

 
1,578

 
162

 
 
 
 
 
 
 
 
 
 
 
 
 
(265
)
 
(265
)
 
(62
)%
 
(62
)%
Baraclude
 
291

 
299

 
590

 
306

 
896

 
296

 
1,192

 
282

 
 
 
 
 
 
 
 
 
 
 
 
 
(9
)
 
(9
)
 
(3
)%
 
(3
)%
Sustiva Franchise(c)
 
273

 
271

 
544

 
275

 
819

 
246

 
1,065

 
184

 
 
 
 
 
 
 
 
 
 
 
 
 
(89
)
 
(89
)
 
(33
)%
 
(33
)%
Reyataz Franchise
 
221

 
247

 
468

 
238

 
706

 
206

 
912

 
193

 
 
 
 
 
 
 
 
 
 
 
 
 
(28
)
 
(28
)
 
(13
)%
 
(13
)%
Other Brands
 
568

 
572

 
1,140

 
550

 
1,690

 
581

 
2,271

 
499

 
 
 
 
 
 
 
 
 
 
 
 
 
(69
)
 
(69
)
 
(12
)%
 
(12
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
4,391

 
$
4,871

 
$
9,262

 
$
4,922

 
$
14,184

 
$
5,243

 
$
19,427

 
$
4,929

 
 
 
 
 
 
 
 
 
 
 
 
 
$
538

 
$
538

 
12
 %
 
12
 %
(a)
Includes Orencia SubQ revenues of $244 million and $216 million for the three months ended March 31, 2017 and 2016, respectively.
(b)
Includes Daklinza (daclatasvir) revenues of $158 million and $420 million for the three months ended March 31, 2017 and 2016, respectively.
(c)
The Sustiva Franchise includes sales of Sustiva and revenue from sales of bulk efavirenz included in the combination therapy, Atripla. Includes alliance revenue of $158 million and $241 million for the three months ended March 31, 2017 and 2016, respectively.

4

BRISTOL-MYERS SQUIBB COMPANY
U.S. REVENUES
QUARTERLY REVENUES TREND ANALYSIS
(Unaudited, dollars in millions)
 
 
2016
 
2017
 
% 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
Prioritized Brands
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Opdivo
 
$
594

 
$
643

 
$
1,237

 
$
712

 
$
1,949

 
$
715

 
$
2,664

 
$
761

 
 
 
 
 
 
 
 
 
 
 
 
 
28
 %
 
28
 %
Eliquis
 
468

 
444

 
912

 
512

 
1,424

 
539

 
1,963

 
699

 
 
 
 
 
 
 
 
 
 
 
 
 
49
 %
 
49
 %
Orencia(a)
 
321

 
401

 
722

 
387

 
1,109

 
423

 
1,532

 
362

 
 
 
 
 
 
 
 
 
 
 
 
 
13
 %
 
13
 %
Sprycel
 
210

 
233

 
443

 
259

 
702

 
267

 
969

 
247

 
 
 
 
 
 
 
 
 
 
 
 
 
18
 %
 
18
 %
Yervoy
 
199

 
179

 
378

 
222

 
600

 
202

 
802

 
243

 
 
 
 
 
 
 
 
 
 
 
 
 
22
 %
 
22
 %
Empliciti
 
28

 
33

 
61

 
36

 
97

 
36

 
133

 
36

 
 
 
 
 
 
 
 
 
 
 
 
 
29
 %
 
29
 %
Established Brands
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hepatitis C Franchise(b)
 
259

 
294

 
553

 
192

 
745

 
82

 
827

 
42

 
 
 
 
 
 
 
 
 
 
 
 
 
(84
)%
 
(84
)%
Baraclude
 
17

 
15

 
32

 
17

 
49

 
17

 
66

 
14

 
 
 
 
 
 
 
 
 
 
 
 
 
(18
)%
 
(18
)%
Sustiva Franchise(c)
 
228

 
227

 
455

 
234

 
689

 
212

 
901

 
153

 
 
 
 
 
 
 
 
 
 
 
 
 
(33
)%
 
(33
)%
Reyataz Franchise
 
120

 
122

 
242

 
125

 
367

 
117

 
484

 
88

 
 
 
 
 
 
 
 
 
 
 
 
 
(27
)%
 
(27
)%
Other Brands
 
93

 
97

 
190

 
94

 
284

 
95

 
379

 
93

 
 
 
 
 
 
 
 
 
 
 
 
 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total(d)
 
$
2,537

 
$
2,688

 
$
5,225

 
$
2,790

 
$
8,015

 
$
2,705

 
$
10,720

 
$
2,738

 
 
 
 
 
 
 
 
 
 
 
 
 
8
 %
 
8
 %
(a)
Includes Orencia SubQ revenues of $146 million and $132 million for the three months ended March 31, 2017 and 2016, respectively.
(b)
Includes revenues of Daklinza (daclastasvir) only.
(c)
The Sustiva Franchise includes sales of Sustiva, as well as revenue from sales of bulk efavirenz included in the combination therapy, Atripla.
(d)
Includes United States and Puerto Rico.


5

BRISTOL-MYERS SQUIBB COMPANY
INTERNATIONAL REVENUES
QUARTERLY REVENUES TREND ANALYSIS
(Unaudited, dollars in millions)
 
 
2016
 
2017
 
% 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
Prioritized Brands
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Opdivo
 
$
110

 
$
197

 
$
307

 
$
208

 
$
515

 
$
595

 
$
1,110

 
$
366

 
 
 
 
 
 
 
 
 
 
 
 
 
**

 
**

Eliquis
 
266

 
333

 
599

 
372

 
971

 
409

 
1,380

 
402

 
 
 
 
 
 
 
 
 
 
 
 
 
51
 %
 
51
 %
Orencia
 
154

 
192

 
346

 
185

 
531

 
202

 
733

 
173

 
 
 
 
 
 
 
 
 
 
 
 
 
12
 %
 
12
 %
Sprycel
 
197

 
218

 
415

 
213

 
628

 
227

 
855

 
216

 
 
 
 
 
 
 
 
 
 
 
 
 
10
 %
 
10
 %
Yervoy
 
64

 
62

 
126

 
63

 
189

 
62

 
251

 
87

 
 
 
 
 
 
 
 
 
 
 
 
 
36
 %
 
36
 %
Empliciti
 
—

 
1

 
1

 
5

 
6

 
11

 
17

 
17

 
 
 
 
 
 
 
 
 
 
 
 
 
N/A

 
N/A

Established Brands
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hepatitis C Franchise(a)
 
168

 
252

 
420

 
187

 
607

 
144

 
751

 
120

 
 
 
 
 
 
 
 
 
 
 
 
 
(29
)%
 
(29
)%
Baraclude
 
274

 
284

 
558

 
289

 
847

 
279

 
1,126

 
268

 
 
 
 
 
 
 
 
 
 
 
 
 
(2
)%
 
(2
)%
Sustiva Franchise(b)
 
45

 
44

 
89

 
41

 
130

 
34

 
164

 
31

 
 
 
 
 
 
 
 
 
 
 
 
 
(31
)%
 
(31
)%
Reyataz Franchise
 
101

 
125

 
226

 
113

 
339

 
89

 
428

 
105

 
 
 
 
 
 
 
 
 
 
 
 
 
4
 %
 
4
 %
Other Brands
 
475

 
475

 
950

 
456

 
1,406

 
486

 
1,892

 
406

 
 
 
 
 
 
 
 
 
 
 
 
 
(15
)%
 
(15
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total(c)
 
$
1,854

 
$
2,183

 
$
4,037

 
$
2,132

 
$
6,169

 
$
2,538

 
$
8,707

 
$
2,191

 
 
 
 
 
 
 
 
 
 
 
 
 
18
 %
 
18
 %

**
In excess of +/- 100%
(a)
Includes Daklinza (daclatasvir) revenues of $116 million and $161 million for the three months ended March 31, 2017 and 2016, respectively.
(b)
The Sustiva Franchise includes sales of Sustiva and revenue from sales of bulk efavirenz included in the combination therapy, Atripla.
(c)
When adjusted for foreign exchange impact, total revenues increased 20% for the first quarter.



6

BRISTOL-MYERS SQUIBB COMPANY
SPECIFIED ITEMS
(Unaudited, dollars in millions)
 
 
2016
 
2017
 
 
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
Cost of products sold(a)
 
$
4

 
$
4

 
$
8

 
$
7

 
$
15

 
$
6

 
$
21

 
$
—

 

 

 

 

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
License and asset acquisition charges
 
125

 
139

 
264

 
45

 
309

 
130

 
439

 
50

 

 

 

 

 

 

IPRD impairments
 
—

 
—

 
—

 
—

 
—

 
13

 
13

 
75

 

 

 

 

 

 

Accelerated depreciation and other
 
13

 
13

 
26

 
14

 
40

 
43

 
83

 
72

 

 

 

 

 

 

Research and development
 
138

 
152

 
290

 
59

 
349

 
186

 
535

 
197

 

 

 

 

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for restructuring
 
4

 
18

 
22

 
19

 
41

 
68

 
109

 
164

 

 

 

 

 

 

Divestiture gains
 
(269
)
 
(277
)
 
(546
)
 
(13
)
 
(559
)
 
—

 
(559
)
 
(100
)
 

 

 

 

 

 

Pension charges
 
22

 
25

 
47

 
19

 
66

 
25

 
91

 
33

 

 

 

 

 

 

Litigation and other settlements
 
43

 
—

 
43

 
(3
)
 
40

 
—

 
40

 
(481
)
 

 

 

 

 

 

Intangible asset impairments
 
15

 
—

 
15

 
—

 
15

 
—

 
15

 
—

 

 

 

 

 

 

Royalties and licensing income
 
—

 
—

 
—

 
—

 
—

 
(10
)
 
(10
)
 
—

 

 

 

 

 

 

Other (income)/expense
 
(185
)
 
(234
)
 
(419
)
 
22

 
(397
)
 
83

 
(314
)
 
(384
)
 

 

 

 

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Increase/(decrease) to pretax income
 
(43
)
 
(78
)
 
(121
)
 
88

 
(33
)
 
275

 
242

 
(187
)
 

 

 

 

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income taxes on specified items
 
83

 
76

 
159

 
(3
)
 
156

 
(105
)
 
51

 
72

 

 

 

 

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Increase/(decrease) to net earnings
 
40

 
(2
)
 
38

 
85

 
123

 
170

 
293

 
(115
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noncontrolling interest
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(59
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Increase/(decrease) to net earnings used for diluted Non-GAAP EPS calculation
 
$
40

 
$
(2
)
 
$
38

 
$
85

 
$
123

 
$
170

 
$
293

 
$
(174
)
 

 

 

 

 

 

(a)
Specified items in cost of products sold are accelerated depreciation, asset impairment and other shutdown costs.

7

BRISTOL-MYERS SQUIBB COMPANY
RECONCILIATION OF CERTAIN GAAP LINE ITEMS TO CERTAIN NON-GAAP LINE ITEMS
(Unaudited, dollars in millions)
 
 
2016
 
2017
 
 
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
Gross Profit
 
$
3,339

 
$
3,665

 
$
7,004

 
$
3,617

 
$
10,621

 
$
3,860

 
$
14,481

 
$
3,670

 

 

 

 

 

 

Specified items(a)
 
4

 
4

 
8

 
7

 
15

 
6

 
21

 
—

 

 

 

 

 

 

Gross profit excluding specified items
 
3,343

 
3,669

 
7,012

 
3,624

 
10,636

 
3,866

 
14,502

 
3,670

 

 

 

 

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Research and development
 
1,136

 
1,266

 
2,402

 
1,138

 
3,540

 
1,400

 
4,940

 
1,288

 

 

 

 

 

 

Specified items(a)
 
(138
)
 
(152
)
 
(290
)
 
(59
)
 
(349
)
 
(186
)
 
(535
)
 
(197
)
 

 

 

 

 

 

Research and development excluding specified items
 
998

 
1,114

 
2,112

 
1,079

 
3,191

 
1,214

 
4,405

 
1,091

 

 

 

 

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other (income)/expense
 
(520
)
 
(454
)
 
(974
)
 
(224
)
 
(1,198
)
 
(87
)
 
(1,285
)
 
(647
)
 

 

 

 

 

 

Specified items(a)
 
185

 
234

 
419

 
(22
)
 
397

 
(83
)
 
314

 
384

 

 

 

 

 

 

Other (income)/expense excluding specified items
 
(335
)
 
(220
)
 
(555
)
 
(246
)
 
(801
)
 
(170
)
 
(971
)
 
(263
)
 

 

 

 

 

 


(a)
Refer to the Specified Items schedule for further details.


8

BRISTOL-MYERS SQUIBB COMPANY
RECONCILIATION OF GAAP TO NON-GAAP EPS
(Unaudited, dollars in millions)
 
 
2016
 
2017
 
 
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
Earnings before income taxes
 
$
1,655

 
$
1,615

 
$
3,270

 
$
1,559

 
$
4,829

 
$
1,086

 
$
5,915

 
$
1,955

 
 
 
 
 
 
 
 
 

 

Specified items(a)
 
(43
)
 
(78
)
 
(121
)
 
88

 
(33
)
 
275

 
242

 
(187
)
 
 
 
 
 
 
 
 
 

 

Earnings before income taxes excluding specified items
 
1,612

 
1,537

 
3,149

 
1,647

 
4,796

 
1,361

 
6,157

 
1,768

 
 
 
 
 
 
 
 
 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for income taxes
 
449

 
427

 
876

 
344

 
1,220

 
188

 
1,408

 
429

 
 
 
 
 
 
 
 
 

 

Tax on specified items(a)
 
83

 
76

 
159

 
(3
)
 
156

 
(105
)
 
51

 
72

 
 
 
 
 
 
 
 
 

 

Provision for income taxes excluding tax on specified items
 
366

 
351

 
717

 
347

 
1,064

 
293

 
1,357

 
357

 
 
 
 
 
 
 
 
 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Earnings/(Loss) Attributable to Noncontrolling Interest
 
11

 
22

 
33

 
13

 
46

 
4

 
50

 
(48
)
 
 
 
 
 
 
 
 
 
 
 
 
Specified items(a)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(59
)
 
 
 
 
 
 
 
 
 
 
 
 
Net Earnings Attributable to Noncontrolling Interest excluding specified items
 
11

 
22

 
33

 
13

 
46

 
4

 
50

 
11

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net earnings attributable to BMS used for Diluted EPS Calculation - GAAP
 
1,195

 
1,166

 
2,361

 
1,202

 
3,563

 
894

 
4,457

 
1,574

 
 
 
 
 
 
 
 
 

 

Specified items(a)
 
40

 
(2
)
 
38

 
85

 
123

 
170

 
293

 
(174
)
 
 
 
 
 
 
 
 
 

 

Net earnings attributable to BMS used for Diluted EPS Calculation excluding specified items - Non-GAAP
 
1,235

 
1,164

 
2,399

 
1,287

 
3,686

 
1,064

 
4,750

 
1,400

 
 
 
 
 
 
 
 
 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-average Common shares Outstanding - Diluted- GAAP
 
1,680

 
1,679

 
1,679

 
1,679

 
1,679

 
1,680

 
1,680

 
1,671

 
 
 
 
 
 
 
 
 

 

Weighted-average Common shares Outstanding - Diluted- Non-GAAP
 
1,680

 
1,679

 
1,679

 
1,679

 
1,679

 
1,680

 
1,680

 
1,671

 
 
 
 
 
 
 
 
 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted Earnings Per Share - GAAP
 
$
0.71

 
$
0.69

 
$
1.41

 
$
0.72

 
$
2.12

 
$
0.53

 
$
2.65

 
$
0.94

 
 
 
 
 
 
 
 
 

 

Diluted Earnings Per Share attributable to specified items
 
0.03

 
—

 
0.02

 
0.05

 
0.08

 
0.10

 
0.18

 
(0.10
)
 
 
 
 
 
 
 
 
 

 

Diluted Earnings Per Share - Non-GAAP
 
$
0.74

 
$
0.69

 
$
1.43

 
$
0.77

 
$
2.20

 
$
0.63

 
$
2.83

 
$
0.84

 
 
 
 
 
 
 
 
 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effective Tax Rate
 
27.1
 %
 
26.4
 %
 
26.8
 %
 
22.1
 %
 
25.3
 %
 
17.3
%
 
23.8
 %
 
21.9
 %
 
 
 
 
 
 
 
 
 

 

Specified items (a)
 
(4.4
)%
 
(3.6
)%
 
(4.0
)%
 
(1.0
)%
 
(3.1
)%
 
4.2
%
 
(1.8
)%
 
(1.7
)%
 
 
 
 
 
 
 
 
 

 

Effective Tax Rate excluding specified items
 
22.7
 %
 
22.8
 %
 
22.8
 %
 
21.1
 %
 
22.2
 %
 
21.5
%
 
22.0
 %
 
20.2
 %
 
 
 
 
 
 
 
 
 

 

(a)
Refer to the Specified Items schedule for further details. Effective tax rate on the Specified Items represents the difference between the GAAP and Non-GAAP effective tax rate.

9

BRISTOL-MYERS SQUIBB COMPANY
SELECTED BALANCE SHEET INFORMATION
(Unaudited, dollars in millions)
 
 
 
March 31,
2016
 
June 30,
2016
 
September 30,
2016
 
December 31,
2016
 
March 31,
2017
 
June 30,
2017
 
September 30,
2017
 
December 31,
2017
Cash and cash equivalents
 
$
2,644

 
$
2,934

 
$
3,432

 
$
4,237

 
$
3,910

 

 

 

Marketable securities - current
 
1,663

 
1,717

 
2,128

 
2,113

 
2,199

 

 

 

Marketable securities - non-current
 
3,689

 
3,281

 
3,035

 
2,719

 
2,685

 

 

 

     Cash, cash equivalents and marketable securities
 
7,996

 
7,932

 
8,595

 
9,069

 
8,794

 

 

 

 
 
 
 
 
 
 
 
 
 


 
 
 
 
 
 
Short-term debt obligations
 
(106
)
 
(155
)
 
(990
)
 
(992
)
 
(1,197
)
 

 

 

Long-term debt
 
(6,593
)
 
(6,581
)
 
(5,836
)
 
(5,716
)
 
(7,237
)
 

 

 

     Net cash position
 
$
1,297

 
$
1,196

 
$
1,769

 
$
2,361

 
$
360

 

 

 



10

BRISTOL-MYERS SQUIBB COMPANY
2017 FULL YEAR PROJECTED DILUTED EPS FROM OPERATIONS
EXCLUDING PROJECTED SPECIFIED ITEMS
 
 
Full Year 2017
 
 
 
 
 
 
 
 
Pre-tax
 
Tax
 
After-tax
 
Projected Diluted Earnings Attributable to Shareholders per Common Share - GAAP
 
 
 
 
$2.72 to $2.87

 
 
 
 
 
 
 
 
 
 
Projected Specified Items:
 
 
 
 
 
 
Restructuring, accelerated depreciation and other shutdown costs (1)
0.35

 
0.12

 
0.23

 
Divestiture gains and licensing income
(0.36
)
 
(0.13
)
 
(0.23
)
 
Research and development license and asset acquisition charges
0.31

 
0.05

 
0.26

 
Pension charges
0.11

 
0.04

 
0.07

 
Litigation and other settlements
(0.29
)
 
(0.10
)
 
(0.19
)
 
Other
0.01

 
0.02

 
(0.01
)
 
Total
0.13

 
—

 
0.13

 
 
 
 
 
 
 
 
 
 
Projected Diluted Earnings Attributable to Shareholders per Common Share - non-GAAP
 
 
 
 
$2.85 to $3.00

 
 
 
 
 
 
 
 
 
 
(1) Includes items recognized in Research and development and Other (income)/expense.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The following table summarizes the company's 2017 financial guidance:
 
Line item
 
GAAP
 
Non-GAAP
 
Gross margin as a percent of revenue
 
Approximately 72%-73%
 
Approximately 72%-73%
 
Marketing, selling and administrative expense
 
Decrease in mid to high-single digits compared to 2016
 
Decrease in mid to high-single digits compared to 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Research and development expense
 
Increase in the high-teens digits compared to 2016
 
Increase in the low double digits compared to 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effective tax rate
 
Approximately 22%
 
Approximately 21%
The GAAP financial results for the full year 2017 will include specified items, including gains on divestitures, upfront payments from out licensed assets, charges associated with restructuring, downsizing and streamlining worldwide operations, license and asset acquisition charges, litigation and other settlements, licensed asset impairments and pension charges.  The GAAP financial results for 2017 could also include other specified items that have not yet been identified and quantified, including any additional gains or losses from divestitures, license and asset acquisition charges, licensed asset impairments, litigation and other settlements and significant tax events, among other items. For a fuller discussion of certain 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 Reports First Quarter 2017 Financial Results, April 27, 2017 including “2017 Financial Guidance” and “Use of non-GAAP Financial Information” therein. 


11