2019 BMS Annual Report PDF

We’re inspired by a single vision:
2019 ANNUAL REPORT

Our Mission
To discover, develop and deliver innovative medicines
that help patients prevail over serious diseases
Our Vision
To be the world's leading biopharma company
that transforms patients' lives through science
Bristol Myers Squibb 2019 Annual Report
The patient stories shared in this Annual Report depict individual patient responses to our medicines or investigational compounds and are
not representative of all patient responses. In addition, there is no guarantee that potential drugs or indications still in development will
receive regulatory approval.
Made Strong® is a registered mark of the Made Strong organization. Used with permission.
Letter from the Chairman and CEO
At Bristol Myers Squibb, we are inspired
by our mission – to discover, develop and
deliver innovative medicines that help
patients prevail over serious diseases.
Every day, we focus on innovations that
drive meaningful breakthroughs so we
can bring life-saving medicines to people
around the world.
2019 was a transformative year for us.
A BIOPHARMA LEADER THE POWER OF FOLLOWING THE SCIENCE

The acquisition of Celgene Corporation significantly We start this next chapter at a time when unprecedented
advanced our strategy to create a leading biopharma scientific breakthroughs are advancing the treatment
company by bringing together the speed and agility of disease as never before. Bristol Myers Squibb is well
of a biotech with the global scale and resources of an positioned in scientific hubs of innovation in the U.S. and
established pharmaceutical company. Our new company globally, and we collaborate with a broad network of global
has strong commercial franchises in oncology, hematology, partners across our disease areas of focus to sustain our
immunology and cardiovascular disease, one of the most leadership and continue to transform patient outcomes.
diverse and promising pipelines in the industry, and highly We are moving to the next generation of treatment options,
talented people. such as CAR T therapy, and continue to pursue innovative
treatments through new scientific platforms such as
Together, we are advancing our mission and our vision
biologics, cell therapy and protein homeostasis. We are
to transform patients’ lives through science, and you will
leveraging technology, data and analytics to accelerate
see that reflected in our new brand.
our pipeline, enhance the speed, accuracy, and efficiency
of clinical trials, and better demonstrate the value of our
medicines.
2019 Full Year Revenues

$ 26.1B
GAAP Full Year*
16% $ 39.8B
Pro Forma Full Year**
10%
GAAP Full Year Change* Pro Forma Full Year Change**
* Full Year GAAP: *Includes Celgene product revenues from November 20, 2019, which was the date of the closing of the acquisition, through December 31, 2019.
See “Quarterly Package of Financial Information,” available on bms.com/investors.
2 ** Pro Forma Full Year: Reflects product revenues for the period prior to November 20, 2019, which was the date of the Celgene acquisition.
All product revenues prior to November 20, 2019 have been recast to exclude foreign currency hedge gains and losses.
See “Quarterly Package of Financial Information” available on bms.com/investors.
DELIVERING RESPONSIBILITY KEY ACHIEVEMENTS
EXCEPTIONAL RESULTS AT OUR CORE IN 2019 INCLUDE:
We are focused on driving enterprise How we carry out our work is as
performance while keeping ethics, important as the medicines we deliver. Completed acquisition
integrity and quality at the core of We take a holistic approach to building of Celgene
everything we do. We operate with sustainability across our product portfolio
discipline and seize opportunities to – from developing and manufacturing
Strong business
increase productivity. our life-saving medicines to transporting
performance across
them to patients around the world.
In 2019, we delivered strong our portfolio
performance across our portfolio of We support initiatives and organizations
marketed medicines, advanced our that help improve health, expand Implementation of a 10%
pipeline, and positioned our new research opportunities, promote STEM dividend increase and
company for a successful integration. education, and deliver basic human $7 billion accelerated
At every level of the company our services to our communities. We share repurchase
people played an important role. also promote health equity globally
I am proud of our teams for their and strive to increase access to life- Rapid and successful
strong focus and execution during saving medicines for populations divestiture of Otezla ®
a period of significant change. disproportionately affected by serious (apremilast)
diseases and conditions, giving new hope
We leveraged digital innovation to some of the world’s most vulnerable
to accelerate drug discovery and Progress on the Revlimid ®
people. We achieve this in part through
development, improve manufacturing, (lenalidomide) intellectual
the Bristol Myers Squibb Foundation,
property estate
enhance our business capabilities, and an independent 501(c)(3) charitable
ultimately advance patient care. For organization, which supports community-
example, we partnered with Fitbit based programs to address cancer The launch of Inrebic ®
through our BMS-Pfizer Alliance to help disparities in sub-Saharan Africa, China (fedratinib) and Reblozyl ®
bring arrhythmia detection to Fitbit’s and Brazil, and in cancer, cardiovascular (luspatercept-aamt) in
fitness trackers, potentially helping to the U.S.
disease and immunology in the U.S.
drive earlier diagnosis of atrial fibrillation
We are focused on developing Two positive studies in
in individuals at increased risk of stroke.
transformational medicines that first-line lung cancer for
Our manufacturing network is growing improve upon the current standard the Opdivo® (nivolumab)
to meet the needs of our evolving of care, and benefit patients, society + Yervoy® (ipilimumab)
pipeline and portfolio. We have and payers. We are actively engaged combination
expanded our network to include CAR in the global dialogue to address the
T manufacturing centers in the U.S. as affordability of life-saving medicines and
Continued strengthening
well as a newly constructed biologics the increased burden that healthcare of the profile of Eliquis®
plant in Cruiserath, Ireland. I am excited costs may place on patients, families (apixaban) through
to share that this site is our first zero- and caregivers. We are playing an active multiple, robust real-world
waste-to-landfill and 100% green energy role in identifying changes in healthcare studies
manufacturing facility. systems required to enable payment
models that closely match value, improve
Regulatory filings for
We achieved several important patient access and help reduce the
Reblozyl ® and ozanimod
milestones in 2019 as we prepared overall cost of care to society. We are in the U.S. and Europe,
to integrate Celgene. We established also working to advance policies that and liso-cel in the U.S.
a clear integration roadmap, designed support and reward investments in the
our new operating model and named discovery and development of life-saving
medicines. Every day, we are providing Registrational data for the
several layers of senior leaders.
launch indication for ide-cel

As we begin to implement our plans, greater access to our medicines in global
we are on track to deliver $2.5 billion markets through tiered pricing, voluntary
licensing, reimbursement support, patient Strong external recognition
of synergies, approximately one-third
assistance programs and our Bristol of the excellence of our
of which will be achieved in 2020.
Myers Squibb Foundation partnerships. environmental, social and
To measure our success, we have added governance programs
a key integration metric to our executive
compensation plans.
*Figures include, among others, recent indications approved for Opdivo in the U.S. for adjuvant melanoma, metastatic colorectal cancer, and second-line liver and
bladder cancers; in Japan for second-line head & neck cancer and gastric cancer; and in Europe for second-line bladder and head & neck cancer. 3
A PATIENT-FOCUSED CULTURE (NASH), is also progressing. We are enrolling patients in
Phase 2 trials of our Factor XIa inhibitor for secondary
Our culture is the foundation of our success and stroke prevention and VTE prevention, in collaboration with
competitive advantage and is supported by three Janssen Pharmaceuticals, and our research in heart failure is
key areas of focus. progressing. With the acquisition of Celgene we have added
Patients are at the center of everything we do. We are early discovery capabilities in neuroscience to our research
inspired by the knowledge that our efforts can make the teams and look forward to advancing this science.
difference for a patient who needs new options. Tomorrow’s medicines will come from our internal
We embed innovation throughout our organization. innovations as well as the rich ecosystem of scientific
Our integrated operating model helps us efficiently advance innovation that exists outside our company. We have the
our pipeline, successfully manufacture new medicines, financial flexibility to continue to invest in our internal
and seamlessly execute launches, delivering medicines capabilities as well as to support investment in external
to patients with urgency, agility and the utmost integrity innovation.
and care. These are exciting times for us, and our achievements
We recognize that people are our greatest asset. We have in 2019 have set the stage for sustained success.
created an industry-leading workforce. We embrace passion, I am honored to lead such a great company and work
innovation, urgency, accountability, inclusion and integrity with brilliant, passionate and dedicated colleagues.
to bring out the highest potential of each of our colleagues. Our patients remind us every day of the urgency
We believe that the diverse experiences and perspectives of our mission.
of our colleagues help generate our best ideas, drive
innovation and achieve transformative business results.
In order to attract and retain the best people, we offer Thank you.
exciting work opportunities, ongoing education and training,
and competitive compensation and benefit programs.
A COMPANY FOR THE FUTURE Giovanni Caforio, M.D.

Chairman of the Board and Chief Executive Officer
Today, we are well positioned as a company because of the
strength of our current business. We have an unprecedented
March 10, 2020
opportunity with eight potential commercial launches and
significant lifecycle management opportunities for each of
those medicines.
In the medium and long term, we have a deep and diverse
pipeline that will drive future innovative medicines.
In oncology, our scientists are targeting different immune
system pathways to address interactions between tumors,
the microenvironment and the immune system to help
more patients respond to treatment. Combining these Evolving our Brand
approaches is key to delivering new options for cancer
To reflect the transformation of our
treatment and addressing the growing issue of resistance to
immunotherapy.
company, we have evolved our company
brand. We drew inspiration for our brand
At the 2019 American Society of Hematology (ASH) Annual identity from our patients and our
Meeting, our first medical congress as a new company, we people. Our symbol, the hand, is a simple,
demonstrated the strength of our hematology pipeline with
universal expression of healing, of giving
data across 85 abstracts, including 26 oral presentations
and one of only six late-breaking presentations. This shows and receiving care. It is a representation
how much we can accomplish for blood cancer patients. of humanity, of the personal touch we
bring to our work and to every treatment
We continue to make significant progress in advancing we pioneer. Our brand fully embodies our
our pipeline, which also includes clinical programs
vision, and embraces our commitment
in immunology, fibrosis and cardiovascular disease.
Registrational trials for our selective TYK2 inhibitor for the of compassionate science and putting
treatment of moderate to severe plaque psoriasis are well patients and people first.
underway. Our Phase 2b trial for our lead fibrosis compound,
FGF21, for the treatment of nonalcoholic steatohepatitis
4
Environmental Stewardship:
A Key Ingredient of Our Medicines
We have set—and exceeded—ambitious targets for environmental performance, and we will build on these
achievements to challenge ourselves and our vendors to continue reducing environmental impact and incorporating
sustainability across our global enterprise. We incorporate the principles of green chemistry and green engineering
to reduce our environmental impact across the supply chain: from product design, through manufacture, packaging
and transport. And we are working to reduce the environmental impact of packaging of our products by using more
recycled materials in our primary and secondary packaging, reducing the amount of secondary packaging and
optimizing the design of packaging inserts.
GREENHOUSE GAS (GHG) REDUCTION PRODUCT DEVELOPMENT, PACKAGING,

LABELLING, AND TRANSPORT
18% 50% 100% of new products in our R&D

portfolio are assessed for improved
100%
environmental impact
100% of prioritized product
18% reduction 50% decrease in packaging is assessed for improved
in absolute transportation-related environmental impact
GHG emissions GHG emissions for
(against 5% goal) Orencia® and Opdivo® Implemented e-labeling of Opdivo® to provide a single,
digital source of information for product details and
updates and to save package-insert materials
20% 20% of BMS energy is cogenerated Shifting to cleaner liquid natural gas as fuel in our
distribution networks
WATER MANAGEMENT PRACTICES & INNOVATIONS
12 LEED certifications received since

100% of our manufacturing sites
100%
2009 (2 additional pending)
evaluated for waste-water practices
(3-year study completed across
13 sites in 6 countries)
Awarded Energy Star Partner of the Year

for 5 consecutive years and Sustained
Excellence for 2 consecutive years
6% 6% reduction in water usage from

2015 baseline (against 5% goal)
Launched our first zero-waste-to-landfill and 100% green
energy manufacturing facility in Cruiserath, Ireland
5
Permission
to Pause
Latarsha Jones had a persistent
headache for weeks; she also had
bouts of dizziness and sometimes
found herself struggling for words.
As the assistant principal at
a busy elementary school in
Atlanta, Ga., she didn’t want
those things to slow her down,
so she ignored them.
“Then, when I was at school preparing paperwork for a more colorful foods. She relocated to Florida, where she
standardized test, the room began to spin. I thought lives with the youngest of her three children, 17-year-old
I was speaking, but nothing was coming out of my mouth,” Kara, and teaches reading at an elementary school.
she said.
She was selected by the American
Latarsha was taken to the Heart Association to be a Class of
emergency room and diagnosed 2019 Ambassador based on her
with a left mid-brain ischemic stroke simple message – “Give yourself per-
caused by a blockage in a blood mission to pause” – which she shares
vessel that supplies the brain. at events across the country as she,
along with countless other patients,
“I was shocked. To me, a stroke hap- wait for a breakthrough treatment.
pened to older Caucasian men, not
to a 41-year-old African-American “I tell people to listen to their body,
woman,” she explained. not to put off seeing a doctor
if something doesn’t feel right
Fortunately, Latarsha fully and to give themselves permission
Latarsha with daughter Kara, preparing home-cooked meals as part
recovered, but she did not make of the new lifestyle that she has adopted after her stroke.to pause.”
the recommended lifestyle changes
or take the medication her doctor prescribed. Treatment options for patients who have experienced
a stroke are limited and the need for something to help
Two years later, she had another stroke.

reduce the risk is needed. Although she has taken control
“Looking back on it, it all makes sense – it was clear that of her health, Latarsha said she lives with the fear of
my weight, stress, grief at two deaths in my family and having another stroke. “I try not to think about it and just
other unhealthy lifestyle choices were contributing to my try to just live my life, but the reality is it could happen.
poor health,” she said. “I had so many warning signs but It’s a scary thought for sure.”
I ignored them and just kept going.”
Bristol Myers Squibb collaborates with Janssen Pharmaceu-
Latarsha then took charge of her life. Today, seven years ticals on the development and commercialization of FXIa,
after her first stroke, she maintains a healthy and active an anticoagulant discovered by Bristol Myers Squibb and in
lifestyle, walking at least five times a week and eating Phase 2 clinical trials for prevention of secondary stroke. n
6
SELECT PBRG HIGHLIGHTS &
2019 ACHIEVEMENTS
Black Organization for Leadership and

Development (BOLD)
• Engaged middle school, high school and university
students in STEM career mentoring and sponsored the
United Negro College Fund (UNCF) Post Doctorate
Fellowship
• Helped foster an understanding between the African-
American community and the medical community by
promoting the story of Henrietta Lacks, an African-
American woman whose cells were taken without her
knowledge and developed into the HeLa cell, the first
immortal line of human cells that were commercialized
People and Business Resource Groups (PBRGs): and distributed to researchers worldwide
• BOLD & OLA Edge Research Concept partnership with
Inspired by Patients. Howard University Hospital targeted African-American

RA patients
Focused on Business.
Powered by Our People.
Global Diversity & Inclusion (GD&I) is essential to our
values and strategy. We strive to create a Company
culture that brings out the best in everyone and
advances our mission to discover, develop and deliver
innovative medicines that help patients prevail over
serious diseases.
Bristol Myers Squibb Network of Women
(left) and Shalabh Singhal (right), who helped create training materials that shed light on important cultural insights.
The People and Business Resource Groups (PBRGs)

Photo: Rita Fawcett (center), of the cardiovascular field team, talks with PAN members, including Manisha Mahimkar
(B-NOW)
are a transformative business model within GD&I
• Partnered with/sponsored professional development
that gives us a competitive advantage in a complex activities for BMS women in the U.S. and E.U. to help
biopharmaceutical industry – one that has seen many prepare them for leadership roles now and in the future
mergers and acquisitions, shifts in global policy and • Established and representing BMS as a founding
member of the HBA Gender Parity Collaborative
changing patient and talent demographics. PBRGs
• Partnering with BOLD to help educate more than
are the voices of our workforce and the trusted line- 250 students in STEM awareness activities
of-sight into the patient experience. The PBRGs
help drive business performance, innovation and
leadership development with more than 11,000 global
Cultivating Leadership and Innovation for
members while strategically engaging with business,
Millennials and Beyond (CLIMB)
governmental and community partners to build BMS’s
reputation and trust with external stakeholders. • Produced a customized information card with targeted
resources to help young cancer patients navigate their
Each of the eight PBRGs is managed by an experienced, cancer journeys and answer questions specific to their
unique needs
high potential full-time leader. PBRG Leads have
• Hosted STEM-focused initiatives including innovation
significant industry experience and in-depth business, tournaments, STEM speed networking, and shadowing
medical and scientific research backgrounds. They programs
report to a member of the BMS Executive Leadership • Partnered with Oncology Academic Research (OAR)
team to host the first ever Emerging Leaders Forums at
Team and act as senior advisors to the businesses, with ASCO and ASH industry conferences. We gathered and
significant responsibilities including development of engaged with next-gen healthcare providers to facilitate
three-year business plans. the inclusion of diverse perspectives to better inform the
BMS medical strategy. Additionally, building partnerships
Following are some of the dynamic ways our PBRGs with the next-gen investigators will help diversify our
are making a substantive business difference for our thought and our clinical trials
patients, our communities and our workforce.
7
SELECT PBRG HIGHLIGHTS & 2019 ACHIEVEMENTS
Differently-Abled Workplace Network (DAWN) Pan Asian Network (PAN)

• Worked with leaders to increase awareness of benefits • Developed a cultural agility development program
of hiring neurodiverse talent and as a result had an for sales team members to improve intercultural skills
increase of direct and contract hiring of individuals on that build trust, gain credibility and better serve
the autism spectrum Asian-American healthcare professionals
• Worked with Supplier Diversity to increase the number
• Established a global buddy program to expedite effective
of preferred disability-owned business enterprises
onboarding of our R&D colleagues in China contributing
(DOBE) vendors as a result was recognized in 2019
as Top Corporation for DOBE to the development and launch of Opdivo® in China
• Local DAWN chapters worked with local vocational • Collaborated to offer the ASPIRE leadership development
schools and high schools to support mentoring programs program which provides unique opportunities for aspiring
for students with disabilities in efforts to cultivate Asian leaders to develop competencies required to reach
future talent the executive level
In 2019, a PBRG partnership with the Oncology

Academic Research group for the Health Equities Forum
brought together 23 external leaders in the field of
Health Equities from major cancer centers across the
U.S. with 15 BMS leaders to discuss barriers to diversity
in clinical trials and identify potential solutions.
Veterans Community Network (VCN) Organization for Latino Achievement (OLA)

• Effective January 1, 2020, a new Military Leave Policy • Hosted annual innovation challenge, OLAthon, which calls
began offering full BMS pay for 24 months, rather than on employees to propose solutions for diseases that are
highly prevalent within the Latino / Latinx community. The
an offset, for full- and part-time U.S. and Puerto Rico
winning team from this innovative crowdsourcing event
employees engaged in uniformed services. Enhanced worked with R&D leadership on the implementation
Employee Assistance Program (EAP) services and a 2- • Signed the Hispanic Promise at the United Nations’
week paid leave for readjustment period between return second National Hispanic Leadership Summit
from deployment and reporting back to work are also • Collaborated with Hispanics Inspiring Students’
available. VCN co-led the enhanced policy development Performance and Achievement (HISPA) and the Center
for Hispanic Policy, Research and Development in support
with BMS Total Rewards colleagues in Human Resources
of the New Jersey Governor’s Hispanic Fellows Program.
• Helped expand outreach opportunities in partnership After four years, more than 100 fellows who are pursuing
with our Commercial Federal Accounts teams to various college degrees have been positively impacted by
strengthen their network of VA and DoD stakeholders OLA’s work
Lesbian, Gay, Bisexual, Transgender and Allies

(LGBTA)
• Introduced a set of transgender guidelines in the
U.S. and Canada to ensure a respectful and inclusive
workplace environment for employees in the process of
gender transition
• Supported national and international efforts to expand
LGBTQ+ rights such as joining the Business Coalition
for the Equality Act and the UN LGBTI Standards of
Conduct
• Worked with Supplier Diversity to enhance relationships
among LBGTQ+ suppliers
8
Living Life
Again
On December 1, 2016, Stan Stanek
of Chanhassen, Minnesota, was
diagnosed with acute myeloid
leukemia (AML) and told that his
best chance of survival was a bone
marrow transplant.
But first, the active, otherwise healthy 60-year-old had to Stan had a specific type of AML caused by a gene muta-
undergo several months of intense chemotherapy to stop tion called IDH2, found in less than 15% of patients with
the cancer from spreading and to put him into remission. the disease, and IDHIFA was being studied in patients
like him. He met all the qualifying criteria for the trial and
The treatments didn’t work. In fact, the man who was
began treatment – one IDHIFA pill daily – in July 2017.
in a hospital only once before found himself spending
weeks there. It was not long before he noticed
a change. “I seemed to be getting
Stan went through several more
better. I started to feel stronger and
months of treatment, numerous bone
I was having fewer blood infusions,”
marrow biopsies and blood infusions.
he says.
Eventually, he says, “We came to the
realization that chemo was just not Six months later, after 18 trips from
working. I was hitting a brick wall his Minnesota home to Houston,
and I didn’t really know what to do. Stan achieved complete remission.
I needed the transplant, but doctors He was cleared for a bone marrow
at the Mayo Clinic [in Rochester] transplant, with his brother as the
wouldn’t even consider it until I was donor, in February 2018.
in remission.”
Since it was performed, he has had
Stan and Sue approached his battle Stan and his wife, Sue, approached his AML treatment as a several biopsies and remains in
as a couple. Without denying his team, relying on friends, family and faith. complete remission.
prognosis, they stayed positive and
“I do not believe I would be here today if it weren’t for this
hopeful and relied on their family, friends and faith to
pill,” Stan adds. “IDHIFA was the key that opened the door
keep them focused on their blessings. “Our mantra was,
to my bone marrow transplant.”
‘Make it a day well lived,’” he says.
Stan and Sue are celebrating their 40th wedding
Several months later, as Stan’s health continued to decline,
anniversary this year and enjoying moments they thought
he learned about a clinical trial for IDHIFA (enasidenib)
might be lost because of AML. “I’m doing all the things
being conducted at a treatment center in Houston.
I was before,” Stan says. “For me IDHIFA wasn’t only hope,
it was an answer. I’m living life again.” n
9
At Bristol Myers Squibb, employees like
associate researcher Mahwish Khalid are
passionate about the work they do to help
transform patients’ lives through science.
10
Listed below are our investigational compounds that we have in clinical studies as well as the approved and potential indications
for our marketed products in the related therapeutic area as of January 1, 2020. Whether any of the listed compounds ultimately
becomes a marketed product depends on the results of clinical studies, the competitive landscape of the potential product’s market,
reimbursement decisions by payers and the manufacturing processes necessary to produce the potential product on a commercial
scale, among other factors. There can be no assurance that we will seek regulatory approval of any of these compounds or that, if
such approval is sought, it will be obtained. There is also no assurance that a compound which gets approved will be commercially
successful. At this stage of development, we cannot determine all intellectual property issues or all the patent protection that may,
or may not, be available for these investigational compounds.
Oncology
Phase I Phase II Phase III Approved Indications
OPDIVO ✦ OPDIVO ✦ OPDIVO ✦ OPDIVO ✦

– Solid Tumors – 1L CRC – 1L Glioblastoma – 1L BRAF wild-type Metastatic
OPDIVO ✦ + YERVOY ✦ – Ovarian – 1L HCC Melanoma
– Solid Tumors – Pan Tumor TMB High – 1L Head & Neck – Adjuvant Melanoma
OPDIVO✦ + Motolimod – Pediatric – 1L Head & Neck Locally – Melanoma across BRAF status
– SCCHN OPDIVO ✦^ Advanced – Mesothelioma
Relatlimab✦^ – Solid Tumors – 2L Esophageal – Previously treated advanced
– Solid Tumors OPDIVO ✦ + YERVOY ✦ – Adjuvant Bladder RCC
– Adjuvant Esophageal/ – Previously treated Gastric
NLRP3 Agonist^ – Metastatic Castration-
Gastroesophageal cancer (Japan)
– Solid Tumors Resistant Prostate
– Adjuvant Gastric – Previously treated HCC
Anti-TIM-3^ OPDIVO ✦ + YERVOY ✦^ – Adjuvant HCC – Previously treated Metastatic
– Solid Tumors – Solid Tumors – Adjuvant Melanoma Head & Neck
STING Agonist OPDIVO✦ + CDK4/6 – Adjuvant RCC – Previously treated Metastatic
– Solid Tumors Inhibitor – Metastatic Castration- Melanoma
EP4✦ Antagonist^ – Neoadjuvant ER+/HER2- Resistant Prostate – Previously treated Metastatic
– Solid Tumors Breast – Neoadjuvant ER+/HER2- MSI-High CRC
AHR✦ OPDIVO ✦^ + Relatlimab✦ Breast – Previously treated Metastatic
– Solid Tumors – Solid Tumors – Neoadjuvant NSCLC Non-squamous NSCLC
Anti-CTLA-4 NF-Probody OPDIVO✦ + Linrodostat – Peri-adjuvant NSCLC – Previously treated Metastatic
– Solid Tumors – Solid Tumors – Unresectable NSCLC SCLC
Anti-ICOS^ OPDIVO✦ + OPDIVO ✦ + YERVOY ✦ – Previously treated Metastatic
– Solid Tumors Bempegaldesleukin✦# – 1L Bladder Squamous NSCLC
Anti-TIGIT^ – 1L Bladder – 1L Esophageal – Previously treated Metastatic
– Solid Tumors OPDIVO✦ + – 1L Gastric Urothelial
Anti-CD73^ Bempegaldesleukin✦ – 1L HCC OPDIVO ✦ + YERVOY ✦
– Solid Tumors – 1L Head & Neck – 1L Metastatic Melanoma
– Solid Tumors
POMALYST/IMNOVID – 1L Mesothelioma – 1L RCC
BET Inhibitor^
– 1L NSCLC – BRAF wild-type Metastatic
– Solid Tumors – Pediatric Glioblastoma
– Adjuvant Melanoma Melanoma
Anti-SIRPα Anti-CTLA-4 NF^
– Adjuvant RCC – Melanoma across BRAF status
– Solid Tumors – Solid Tumors
– NSCLC EGFR Mutant – Previously treated Metastatic
GEMoaB CD3xPSCA✦ Anti-CTLA-4 Probody^ – Unresectable NSCLC MSI-High CRC
– Solid Tumors – Solid Tumors OPDIVO ✦^ + Relatlimab✦ YERVOY ✦
Anti-IL8^ CCR2/5 Dual Antagonist^ – 1L Melanoma – Adjuvant Melanoma
– Solid Tumors – Solid Tumors OPDIVO✦ + Linrodostat – Adolescent Metastatic
LSD1 Inhibitor Cabiralizumab ^ ✦
– 1L Metastatic Melanoma Melanoma
– Extensive Stage SCLC – Solid Tumors – Neoadjuvant Muscle – Metastatic Melanoma
MAT2A✦ Invasive Bladder Cancer ABRAXANE
– Solid Tumors OPDIVO✦ + Bacillus – Breast
Calmette-Guerin
– Gastric
– High-Risk Non-Muscle
– Locally Advanced or
Invasive Bladder Cancer Metastatic NSCLC

OPDIVO✦ +
– Metastatic Breast Cancer
Bempegaldesleukin✦
– NSCLC
Bristol Myers Squibb – 1L Melanoma
OPDIVO✦ + – Pancreatic
– Unresectable Pancreatic
Bempegaldesleukin✦#
Development Portfolio – 1L RCC
OPDIVO ✦ + YERVOY ✦
by Therapeutic Area + Cabozantinib✦

– Metastatic RCC
Marizomib
– Newly Diagnosed
Glioblastoma 11
Bristol Myers Squibb Development Portfolio
by Therapeutic Area
Hematology
OPDIVO ✦ OPDIVO ✦ OPDIVO ✦ REVLIMID
– Hematologic Malignancies – Non-Hodgkin Lymphoma – Refractory Hodgkin – 1L Multiple Myeloma
liso-cel (CD-19 CAR T) (Diffuse Large B-cell Lymphoma – Mantle Cell Lymphoma
– 3L+ Mantle Cell Lymphoma) EMPLICITI✦ + REVLIMID – MDS
Lymphoma – Non-Hodgkin Lymphoma – 1L Multiple Myeloma – Multiple Myeloma
orva-celO (BCMA CAR T) (Follicular Lymphoma) POMALYST/IMNOVID – Previously treated Follicular
– Relapsed/Refractory – Pediatric Hodgkin – Relapsed/Refractory Lymphoma
Multiple Myeloma Lymphoma Multiple Myeloma – Relapsed/Refractory Adult
bb21217 (BCMA CAR T)✦ – Primary Testicular REBLOZYL✦ T-cell Leukemia/Lymphoma
– Relapsed/Refractory Lymphoma – ESA Naïve MDS OPDIVO ✦
Multiple Myeloma OPDIVO + EMPLICITI
✦ ✦
– MDS Previously treated – Advanced Hodgkin
Lymphoma
Relatlimab ^✦ – Relapsed/Refractory with ESA
POMALYST/IMNOVID
– Hematologic Malignancies Multiple Myeloma INREBIC
– Multiple Myeloma
BET Inhibitor (1) IDHIFA ✦
– MF Previously treated
– Relapsed/Refractory
– Non-Hodgkin Lymphoma – 1L Acute Myeloid with Ruxolitinib
Multiple Myeloma
BET Inhibitor (2) Leukemia IDHIFA✦
EMPLICITI + POMALYST/
– Non-Hodgkin Lymphoma – Newly Diagnosed Acute – Relapsed/Refractory IMNOVID
– Relapsed/Refractory Myeloid Leukemia with Acute Myeloid Leukemia – Relapsed/Refractory Multiple
Acute Myeloid Leukemia IDH2 Mutation with IDH2 Mutation Myeloma
BCMA ADC REBLOZYL✦ ISTODAX EMPLICITI + REVLIMID
– Relapsed/Refractory – MF Anemia – 1L Peripheral T-cell – Relapsed/Refractory Multiple
Multiple Myeloma – Non-Transfusion- Lymphoma Myeloma
BCMA TCE Dependent Beta- liso-cel (CD-19 CAR T) SPRYCEL
– Relapsed/Refractory Thalassemia – Relapsed/Refractory – 1L CML
Multiple Myeloma liso-cel (CD-19 CAR T) Aggressive Large B-cell – Pediatric ALL
CD3XCD33 Bispecific – 2L Diffuse Large B-cell Lymphoma – Refractory CML
Antibody✦ Lymphoma ide-cel (BCMA CAR T)✦ VIDAZA
– Relapsed/Refractory – 3L Diffuse Large B-cell – 3L Relapsed/Refractory – Acute Myeloid Leukemia
Acute Myeloid Leukemia Lymphoma Multiple Myeloma – Chronic Myelomonocytic
CELMod – Chronic Lymphocytic DNMT Inhibitor (CC-486) Leukemia
– Relapsed/Refractory Leukemia – Angioimmunoblastic – MDS
Acute Myeloid Leukemia ide-cel (BCMA CAR T)✦ T-cell Lymphoma REBLOZYL
– Relapsed/Refractory – 2L Relapsed/Refractory – Lower Risk MDS – Transfusion-Dependent
Multiple Myeloma Multiple Myeloma – Post-Induction Acute Beta-Thalassemia
– Relapsed/Refractory – 4L+ Relapsed/Refractory Myeloid Leukemia INREBIC
Non-Hodgkin Lymphoma Multiple Myeloma Maintenance – MF
Anti-SIRPα Iberdomide (CELMoD) IDHIFA✦
– Non-Hodgkin Lymphoma – Multiple Myeloma – Relapsed/Refractory AML
LSD1 Inhibitor DNMT Inhibitor (CC-486) ISTODAX
– Relapsed/Refractory – Post HMA Failure MDS – Cutaneous T-cell Lymphoma
Non-Hodgkin Lymphoma – Peripheral T-cell Lymphoma
MAT2A✦
--Lymphoma
12
Immunology
TYK2 Inhibitor (2) Branebrutinib ORENCIA ORENCIA
–Autoimmune Disease – Rheumatoid Arthritis – Idiopathic Inflammatory – Active Polyarticular JIA
– Sjögren’s Disease Myopathy – Early Rheumatoid Arthritis
TLR 7/8 Antagonist
– Systemic Lupus NULOJIX – JIA Intravenous
–Autoimmune Disease
Erythematosus – Switch from Calcineurin – JIA Subcutaneous
S1P1 Agonist Inhibitor Renal Transplant – Psoriatic Arthritis
TYK2 Inhibitor
–Autoimmune Disease – Crohn’s Disease – RA Auto injector
TYK2 Inhibitor
IL-2 Agonist – Lupus Nephritis – Psoriasis – RA Intravenous
–Autoimmune Disease – Psoriatic Arthritis – RA Subcutaneous
Ozanimod
MK2 – Systemic Lupus – Crohn’s Disease NULOJIX
–Autoimmune Disease Erythematosus – Relapsing Multiple – De Novo Renal Transplant
– Ulcerative Colitis Sclerosis
Iberdomide (CELMoD) – Ulcerative Colitis
– Systemic Lupus
Erythematosus
Anti-IL-13
– Eosinophilic Esophagitis
Cardiovascular
Factor XIa Inhibitor✦ (2) ELIQUIS ✦ ELIQUIS ✦
–Thrombotic Disorders – Pediatric Heart Disease – Stroke Prevention in Atrial
FPR-2 Agonist Nitroxyl Donor Fibrillation
–Heart Failure – Heart Failure – Venous Thromboembolism
Relaxin Prevention Orthopedic
Factor XIa Inhibitor✦ Surgery
–Heart Failure
– Thrombotic Disorders – Venous Thromboembolism
Treatment
Fibrotic Diseases
Phase I Phase II
LPA1 Antagonist HSP47✦ Pegbelfermin JNK Inhibitor

– Pulmonary Fibrosis – Fibrosis – Non-alcoholic Steatohepatitis – Idiopathic Pulmonary Fibrosis
– Non-Alcoholic Steatohepatitis
Note: Above pipeline excludes clinical collaborations

✦ Development Partnership: OPDIVO, YERVOY, Relatlimab, EP4: Ono (our collaboration with Ono also includes other early stage compounds); EMPLICITI: AbbVie;
Bempegaldesleukin: Nektar; Cabiralizumab: Five Prime Therapeutics, Inc.; Cabozantinib: Exelixis, Inc.; ELIQUIS: Pfizer; Factor XIa Inhibitor: Janssen Pharmaceuticals, Inc.;
HSP47: Nitto Denko Corporation; CD3XCD33, GEMoaB CD3xPSCA, GEM333: GeMoaB Monoclonals GmbH; bb21217, ide-cel: bluebird bio, Inc.; REBLOZYL: Acceleron Pharma
Inc., IDHIFA, MAT2A: Agios Pharmaceuticals, Inc., AHR: Ikena Oncology
^ Trial(s) exploring various combinations

# Partner-run study
13
14
Like the
Sun Had
Come Up
“Everyone has a plan until they
get punched in the mouth.”
Chris Dougherty, 56, often uses

that quote from a famous boxer
to describe his experience with
melanoma.
“When I learned about my diagnosis seven years ago, I was the next step would be. Hope was running out. I needed
numb,” he says. “I thought it was just a birthmark. It felt like a new plan.”
I had been hit with a fatal blow and that my plans for my life
were in disarray. My family and I were very concerned, but we It came in the form of two Bristol Myers Squibb immuno-
were determined to be optimistic after I had the surgery to oncology drugs: Yervoy and Opdivo. Chris had begun Yervoy
remove the birthmark.” right after his radiosurgery and had undergone
two of the four treatments he was scheduled to
One year later, Chris found two lumps on his neck. receive. Then his oncologist shared exciting news:
The melanoma had spread. a combination of Yervoy and Opdivo had shown
Doctors at a hospital where Chris worked in promising results.
Lubbock, Texas recommended radiation and
He started the combination almost immediately.
treatment with Interferon, which he followed for
“It was life-changing, like the sun had come up.
about two years. Then, further scans showed the
cancer had also spread to his lung and his brain. The drugs were attacking my cancer but I wasn’t
experiencing any of the side effects I had with
Chris’s status immediately ramped up: he was a chemo. I felt normal again,” he says.
stage 4 cancer patient.
Chris continued taking Opdivo for more than three
“My doctor told me he was going to throw years and stopped all of his treatments in August
everything, including the kitchen sink, at it,” 2018. “I went from a being a patient with stage 4
he says. Chris’s treatment got more aggressive: Chris appreciates the ability to exer-
cise again and to enjoy the outdoors cancer to being cancer free,” he says.
radiosurgery and radiation for the tumors on
near his California home.

his brain and high doses of chemotherapy. Today, Chris lives in Pasadena, California, and
works full time as the administrative CEO at a children’s
“I was in the 5% of people whose brain does not react well to
radiation, so the hope was that the chemo would penetrate hospital. He exercises with kickboxing and outdoor activities
the blood brain barrier and get to work on the tumors in my with Wendy, his wife of almost 29 years, and their two
brain. It was awful. The treatments made me so sick.” adult children.
Chris says it was then that he felt the disease had truly dealt His advice for patients fighting their own battle with
him the biggest hit of all. “I couldn’t work. I couldn’t drive. cancer? “Don’t ever give up, because there are people like the
It was beginning to break me down, not only physically, but researchers at Bristol Myers Squibb who will continue looking
emotionally and spiritually,” he explains. “No one knew what for new ways to fight this disease.” n
15
I Will
Win This
Seven years ago, at age 26,
Jasmin Watson-El’s world
turned upside down.
She was lying in a hospital bed in her hometown of Balti- information, but I am determined to get back to me and
more, Maryland, unable to feel her arms or her legs, and I have strategies to overcome those obstacles.”
she had just been diagnosed with multiple sclerosis (MS).
About a year after her diagnosis, Jasmin learned she was
“I lost all control of my body. It felt like my brain just shut pregnant with her son, Keagan, and credits her “village”
down,” she says of the days and hours leading up to her of supportive family members, friends and healthcare
hospitalization. professionals with helping her navigate
life as a new mother with MS.
MS is a progressive autoimmune
disease that damages the protective She also joined the MS Mindshift,
myelin sheath surrounding nerves in an educational initiative for people
the brain and spinal cord, interrupting living with MS, sponsored by Bristol
the signals sent from those sites to Myers Squibb (formerly Celgene). She
other parts of the body. It causes is an MS Ambassador and speaks
symptoms that can range from fatigue to groups about living with the daily
and numbness in the extremities, like uncertainties that MS brings. “I hope
Jasmin experienced, to tremors and I’m showing people that even with
breathing problems.
MS, they can get up and live. I look
The disease affects about 1 million at me, and I look at MS and I think,
people in the U.S., and they are ‘MS will not win. I will win this.’”
waiting for more breakthroughs in More information can be found

treatment options. “I am determined to get back to me,” says Jasmin (pictured
at www.MSMindShift.com.
with her son, Keagan, who was born after her diagnosis).
With physical therapy, medication and As Jasmin and other patients continue
determination, Jasmin resumed most of her activities to wait for more treatment options, she says, “It gives me
and returned to work as a project manager in the hope that companies like Bristol Myers Squibb are working
public sector. She has good days and bad days and getting closer to new treatments. You cannot stop
and an occasional relapse. because MS will not stop.”
“My brain no longer works the same as it did before,” she Bristol Myers Squibb’s ozanimod is currently in Phase 3
says. “It takes longer for words to come to me or to digest clinical trials for relapsing multiple sclerosis. n
16
2019 Annual Report
BRISTOL MYERS SQUIBB

2019 Financial Report
Table of Contents
Management’s Discussion and 2

Analysis of Financial Condition
and Results of Operations
Quantitative and Qualitative 27

Disclosures About Market Risk
Consolidated Financial Statements 28
Notes to the Consolidated 31

Financial Statements
Reports of Management 80
Controls and Procedures 81
Reports of Independent 82
Registered Public Accounting Firm
Performance Graph 86
Five-Year Financial Summary 87
Summary of Abbreviated Terms 88
1
Bristol-Myers Squibb
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Management’s discussion and analysis of financial condition and results of operations is provided as a supplement to and should be read
in conjunction with the consolidated financial statements and related notes included elsewhere in this 2019 Form 10-K to enhance the
understanding of our results of operations, financial condition and cash flows.
The comparison of fiscal 2018 to 2017 has been omitted from this Form 10-K, but can be referenced in our Form 10-K for the fiscal year
ended December 31, 2018—“Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations” filed on
February 25, 2019.
EXECUTIVE SUMMARY
Bristol-Myers Squibb Company is a global biopharmaceutical company whose mission is to discover, develop and deliver innovative
medicines that help patients prevail over serious diseases. Refer to the Summary of Abbreviated Terms at the end of this 2019 Form 10-
K for terms used throughout the document.
We completed the Celgene transaction on November 20, 2019. We expect that the acquisition will enable us to create a leading focused
biopharmaceutical company that is well positioned to address the needs of patients with cancer, inflammatory, immunologic, cardiovascular
or fibrotic diseases through high-value innovative medicines and leading scientific capabilities. Commencing from the acquisition date,
BMS's financial statements include the assets, liabilities, operating results and cash flows of Celgene. Refer to “Consolidated Financial
Statements—Note 4. Acquisition, Divestitures, Licensing and Other Arrangements” for further discussion on the Celgene transaction.
In 2019, we received several approvals for new medicines and additional indications and formulations of currently marketed medicines
in major markets (the U.S., EU and Japan), including multiple regulatory milestone achievements for Opdivo and Opdivo+Yervoy
combinations. We are investigating Opdivo alone and in combination with Yervoy and other anti-cancer agents for a wide array of tumor
types, and have 24 other IO compounds in clinical development. We continue to expand in the field of hematology, where we have the
leading presence, through in-line assets Revlimid and Pomalyst. In 2019, we received regulatory approvals for Reblozyl and Inrebic and
submitted a regulatory application for liso-cel targeting Diffuse Large B-Cell Lymphoma. Additionally, our pipeline shows significant
added promise in hematology malignancies through our CELMoD agents, multiple modalities targeting B-Cell Maturation Antigen
(“BCMA”) and the next generation of cell therapy agents. We are expanding our portfolio in immunology with two near term launch
opportunities in TYK-2 inhibitor and ozanimod. Additionally in the cardiovascular space, Eliquis is now the global leading oral anti-
coagulant drug, and we continue to experience growth in both the Eliquis brand and market while also advancing our Factor XIa inhibitor
program.
In 2019, our revenues increased 16% as a result of higher demand for our prioritized brands including Eliquis and Opdivo and the Celgene
acquisition, which contributed $1.9 billion of revenues, representing approximately one half of the growth. The $1.00 decrease in GAAP
EPS was primarily due to taxes resulting from the Otezla* divestiture, amortization of acquired intangible assets, the unwinding of
inventory fair value adjustments and other costs and expenses resulting from the Celgene acquisition, partially offset by higher revenues.
After adjusting for specified items, non-GAAP EPS increased $0.71, primarily as a result of higher revenues.
Highlights
The following table summarizes our financial information:

Year Ended December 31,
Dollars in Millions, except per share data 2019 2018
Total Revenues $ 26,145 $ 22,561
Diluted Earnings Per Share

GAAP $ 2.01 $ 3.01
Non-GAAP 4.69 3.98
Our non-GAAP financial measures, including non-GAAP earnings and related EPS information, are adjusted to exclude specified items
that represent certain costs, expenses, gains and losses and other items impacting the comparability of financial results. For a detailed
listing of all specified items and further information and reconciliations of non-GAAP financial measures refer to “—Non-GAAP Financial
Measures.”
2
2019 Annual Report
Significant Product and Pipeline Approvals
The following is a summary of the significant approvals received in 2019:
Product Date Approval
EC approval in combination with rituximab for the treatment of adult patients with
Revlimid December 2019 previously treated FL (Grade 1-3a). Revlimid and rituximab (R2) is the first chemotherapy-
free combination regimen approved for the patients with FL by the EC.
Conversion of accelerated FDA approval to full FDA approval for Opdivo+Yervoy for first
March 2019 line metastatic melanoma treatment based on longer follow-up data from CheckMate-067.
Opdivo+Yervoy
EC approval of Opdivo plus low-dose Yervoy for previously untreated patients with
January 2019 intermediate and poor-risk advanced RCC.
EC approval of two new strengths (50 mg and 87.5 mg) for subcutaneous administration,
Orencia April 2019 and a new indication for Orencia injection for the treatment of moderate to severe active
polyarticular juvenile idiopathic arthritis in pediatric patients 2 years of age and older.
EC approval in both tablet and powder for oral suspension formulations, in combination
Sprycel February 2019 with chemotherapy for the treatment of pediatric patients with newly diagnosed Philadelphia
chromosome-positive ALL.
Approved in Japan in combination with pomalidomide and dexamethasone for multiple

November 2019 myeloma following at least two prior therapies, including lenalidomide and proteasome
inhibitor.
Empliciti
EC approval in combination with pomalidomide and dexamethasone for adult patients with
August 2019 RRMM who have received at least two prior therapies, including lenalidomide and a
proteasome inhibitor, and have demonstrated disease progression on the last therapy.
Inrebic(a) FDA approval for the treatment of adult patients with intermediate-2 or high-risk primary
August 2019
or secondary (post-polycythemia vera or post-essential thrombocythemia) myelofibrosis.
November 2019 FDA

Reblozyl(a) approval for the treatment of anemia in adult patients with beta thalassemia who require
regular red blood cell transfusions.
(a) The regulatory approval was obtained by Celgene prior to the completion of the Celgene transaction.
Refer to “—Product and Pipeline Developments” for all of the developments in our marketed products and late-stage pipeline in 2019
and in early 2020.
Strategy
Our principal strategy is to combine the resources, scale and capability of a pharmaceutical company with the speed and focus on innovation
of the biotech industry. Our focus as a biopharmaceutical company is on discovering, developing and delivering transformational medicines
for patients facing serious diseases in areas where we believe that we have an opportunity to make a meaningful difference: oncology
(both solid tumors and hematology), immunology, cardiovascular and fibrosis. Our four strategic priorities as a combined company are
to drive enterprise performance, maximize the value of our commercial portfolio, ensure the long-term sustainability of our pipeline
through combined internal and external innovation and establish our new culture and embed our people strategy.
3
We are developing new medicines in the following core therapeutic areas: (1) oncology with a priority in certain tumor types; (2)
hematology with opportunities to broaden our franchise and potentially sustain a leadership position in multiple myeloma; (3) immunology
with priorities in relapsing multiple sclerosis, psoriasis, lupus, RA and inflammatory bowel disease; (4) cardiovascular disease and; (5)
fibrotic disease with priorities in lung and liver. We continue to advance the next wave of innovative medicines by investing significantly
in our pipeline both internally and through business development activities. We expect that our acquisition of Celgene will further position
us as a leading biopharmaceutical company, expanding our oncology, hematology and immunology portfolios with several near-term
assets and additional external partnerships. We continue to invest in our oncology portfolio by pursuing both monotherapy and combination
approaches and advancing our next wave of early assets and to explore new collaboration opportunities across our therapeutic areas of
focus. We remain focused and well-resourced in our cancer development programs and seek to broaden the use of Opdivo in earlier lines
of therapy, expand into new tumors, accelerate next wave oncology mechanisms and develop treatment options for refractory oncology
patients. For hematology, we have opportunities to launch several new medicines in the near-term with additional pipeline opportunities
in the longer term. There is a broad effort to continue to address the unmet medical need in multiple myeloma and we are working across
multiple modalities and mechanisms of action such as cereblon modulator (“CELMoD”), T-cell Engager and CAR T-cell therapy. Beyond
cancer, we continue to advance our early stage portfolio in immunology, cardiovascular and fibrotic diseases and strengthen our
partnerships with a diverse group of companies and academic institutions in new and expanded research activities. We believe our
differentiated internal and external focus contributes to the advancing of our pipeline of potentially transformational medicines.
Our commercial model has been successful with revenues from our prioritized brands continuing to grow, which demonstrates strong
execution of our strategy. We continue to drive adoption of Opdivo by expanding into additional indications and tumor types both as a
monotherapy and in combination with Yervoy and other anti-cancer agents. Eliquis continues to grow, leveraging its best in class clinical
profile and extensive real world data and is now the number one novel oral anticoagulant in total prescriptions globally. Revlimid and
Pomalyst have transformed the treatment of multiple myeloma, where we have a leading presence, and we continue to seek opportunities
to leverage the significant medical and commercial expertise to address areas of high unmet medical need. We are building on the continued
success of our other prioritized brands and remain strongly committed to Orencia and Sprycel. We are also optimistic on the future growth
and near-term opportunities of Reblozyl, a first-in-class medicine, and Inrebic. Through our operating model transformation, our
commercial infrastructure is uniquely leveraged for potential growth.
Our operating model continues to evolve and we have been successful in focusing commercial, R&D and manufacturing resources on
prioritized brands and markets, strengthening our R&D capabilities in tumor biology, patient selection and new biomarkers, delivering
leaner administrative functions and streamlining our manufacturing network to reflect the importance of biologics in our current and
future portfolio. The evolution in our operating model, which focuses on maintaining a disciplined approach in marketing, selling and
administrative expenses, will enable us to deliver the necessary strategic, financial and operational flexibility to invest in the highest
priority opportunities within our portfolio. We will continue to make progress towards integrating the companies on the commercial and
research and development area. We expect to realize $2.5 billion of synergies resulting from cost savings and avoidance through 2022
and our integration efforts across general and administrative, manufacturing, R&D, procurement and streamlining the Company's pricing
and information technology infrastructure.
Looking ahead, we will continue to implement our biopharma strategy by driving the growth of prioritized brands, executing product
launches, investing in our diverse and innovative pipeline, aided by strategic business development, focusing on prioritized markets,
increasing investments in our biologics manufacturing capabilities and maintaining a culture of continuous improvement.
Acquisitions, Divestitures, Licensing and Collaboration Arrangements
Significant acquisitions, divestitures, licensing and collaboration arrangements during 2019 are summarized below. Refer to “Consolidated
Financial Statements—Note 3. Alliances” and “—Note 4. Acquisitions, Divestitures, Licensing and Other Arrangements” for further
information.
Celgene: BMS acquired Celgene, an integrated global biopharmaceutical company engaged primarily in the discovery, development and
commercialization of innovative therapies for the treatment of cancer and inflammatory diseases through next-generation solutions in
protein homeostasis, immuno-oncology, epigenetics, immunology and neuro-inflammation. Its primary commercial stage products include
Revlimid, Pomalyst/Imnovid, Abraxane, Reblozyl and Inrebic.
Otezla*: BMS divested Otezla* to Amgen as part of the regulatory approval process for the Celgene transaction.
UPSA: BMS divested its UPSA consumer health business to Taisho Pharmaceutical Co., Ltd. to simplify and realign its business portfolio.
4
2019 Annual Report
RESULTS OF OPERATIONS
Regional Revenues
The composition of the changes in revenues was as follows:

Year Ended December 31, 2019 vs. 2018
Foreign
Dollars in Millions 2019 2018 % Change Exchange(b)
United States $ 15,342 $ 12,586 22 % —
Europe 6,266 5,658 11 % (6)%
Rest of the World 4,013 3,733 8% (5)%
Other(a) 524 584 (10)% N/A
Total $ 26,145 $ 22,561 16 % (2)%
(a) Other revenues include royalties and alliance-related revenues for products not sold by our regional commercial organizations.
(b) Foreign exchange impacts were derived by applying the prior period average currency rates to the current period revenues.
U.S. revenues in 2019 were impacted by $1.3 billion from Revlimid and other Celgene products, representing 10% of the change in
revenues, and higher demand for Eliquis. Average net selling prices for legacy BMS products did not increase after charge-backs, rebates,
and discounts in 2019.
Europe revenues in 2019 were impacted by $397 million from Celgene products, representing 7% of the change in revenues, and higher
demand for Eliquis and Opdivo, partially offset by foreign exchange and lower demand for established brands. Average net selling prices
for legacy BMS products were lower after charge-backs, rebates, and discounts in 2019.
Rest of World revenues in 2019 were impacted by $210 million from Celgene products, representing 6% of the change in revenues, and
higher demand for Opdivo and Eliquis, partially offset by foreign exchange and lower demand for established brands. Average net selling
prices for legacy BMS products did not increase after charge-backs, rebates, and discounts in 2019.
No single country outside the U.S. contributed more than 10% of total revenues in 2019 and 2018.
GTN Adjustments
We recognize revenue net of GTN adjustments that are further described in “—Critical Accounting Policies.”
The activities and ending reserve balances for each significant category of GTN adjustments were as follows:
Year Ended December 31, 2019
Other Rebates,
Charge-Backs Medicaid and Returns,
and Cash Medicare Discounts and
Dollars in Millions Discounts Rebates Adjustments Total
Balance at January 1, 2019 $ 245 $ 1,061 $ 1,356 $ 2,662
Celgene acquisition 116 426 846 1,388
Provision related to sales made in:
Current period 3,679 5,003 3,482 12,164
Prior period (4) (62) (66) (132)
Payments and returns (3,643) (4,569) (3,196) (11,408)
Foreign currency translation and other (2) — (6) (8)
Balance at December 31, 2019 $ 391 $ 1,859 $ 2,416 $ 4,666
5
The reconciliation of gross product sales to net product sales by each significant category of GTN adjustments was as follows:
Year Ended December 31, % Change
Dollars in Millions 2019 2018 2019 vs. 2018
Gross product sales $ 37,206 $ 30,174 23%
GTN Adjustments
Charge-backs and cash discounts (3,675) (2,735) 34%
Medicaid and Medicare rebates (4,941) (3,225) 53%
Other rebates, returns, discounts and adjustments (3,416) (2,633) 30%
Total GTN Adjustments (12,032) (8,593) 40%
Net product sales $ 25,174 $ 21,581 17%
GTN adjustments percentage 32% 28% 4%

U.S. 40% 36% 4%
Non-U.S. 15% 13% 2%
GTN adjustments are primarily a function of product sales volume, regional and payer channel mix, contractual or legislative discounts
and rebates. GTN adjustments are increasing at a higher rate than gross product sales due to higher U.S. Eliquis gross product sales,
which has a relatively high GTN adjustment percentage as a result of higher Medicare Part D coverage gap cost share and competitive
pressures to maintain its position on healthcare payer formularies allowing patients continued access through their medical plans.
6
2019 Annual Report
Product Revenues

Prioritized Brands
Revlimid $ 1,299 $ — N/A
U.S. 899 — N/A
Non-U.S. 400 — N/A
Eliquis 7,929 6,438 23%

U.S. 4,755 3,760 26%
Non-U.S. 3,174 2,678 19%
Opdivo 7,204 6,735 7%

U.S. 4,344 4,239 2%
Non-U.S. 2,860 2,496 15%
Orencia 2,977 2,710 10%

U.S. 2,146 1,875 14%
Non-U.S. 831 835 —
Pomalyst/Imnovid 322 — N/A

U.S. 226 — N/A
Non-U.S. 96 — N/A
Sprycel 2,110 2,000 6%

U.S. 1,191 1,091 9%
Non-U.S. 919 909 1%
Yervoy 1,489 1,330 12%

U.S. 1,004 941 7%
Non-U.S. 485 389 25%
Abraxane 166 — N/A

U.S. 122 — N/A
Non-U.S. 44 — N/A
Empliciti 357 247 45%

U.S. 246 164 50%
Non-U.S. 111 83 34%
Inrebic 5 — N/A
U.S. 5 — N/A
Non-U.S. — — N/A
7

Established Brands
Baraclude $ 555 $ 744 (25)%
U.S. 20 32 (38)%
Non-U.S. 535 712 (25)%
Vidaza 58 — N/A
U.S. 1 — N/A
Non-U.S. 57 — N/A
Other Brands(a) 1,674 2,357 (29)%

U.S. 383 484 (21)%
Non-U.S. 1,291 1,873 (31)%
Total Revenues 26,145 22,561 16 %

U.S. 15,342 12,586 22 %
Non-U.S. 10,803 9,975 8%
(a) Includes BMS and Celgene products in 2019.
Revlimid (lenalidomide) — an oral immunomodulatory drug that in combination with dexamethasone is indicated for the treatment of
patients with multiple myeloma. Revlimid as a single agent is also indicated as a maintenance therapy in patients with multiple myeloma
following autologous hematopoietic stem cell transplant.
Eliquis (apixaban) — an oral Factor Xa inhibitor, targeted at stroke prevention in adult patients with NVAF and the prevention and
treatment of VTE disorders.
• U.S. revenues increased due to higher demand, partially offset by higher Medicare Part D coverage gap cost share (from 50%
in 2018 to 70% in 2019).
• International revenues increased due to higher demand. Excluding foreign exchange impacts, revenues increased by 24% in
2019.
Opdivo (nivolumab) — a fully human monoclonal antibody that binds to the PD-1 on T and NKT cells that has been approved for several
anti-cancer indications including bladder, blood, colon, head and neck, kidney, liver, lung, melanoma and stomach and continues to be
investigated across other tumor types and disease areas.
• U.S. revenues increased due to higher average net selling price. The decline in growth rate from 37% in 2018 to 2% in 2019
was primarily due to a smaller previously-treated advanced lung cancer market and increased competition for the Opdivo+Yervoy
combination in kidney cancer. We expect this trend to continue until the market stabilizes or new indications are approved and
launched.
• International revenues increased due to higher demand as a result of approvals for additional indications in 2018 and launches
in Europe and Asia. Excluding foreign exchange impacts, revenues increased by 22% in 2019.
Orencia (abatacept) — a fusion protein indicated for adult patients with moderate to severe active RA and PsA and is also indicated for
reducing signs and symptoms in certain pediatric patients with moderately to severely active polyarticular JIA.
• U.S. revenues increased due to higher demand and higher average net selling price.
• Excluding foreign exchange impacts, international revenues increased by 5% in 2019.
Pomalyst/Imnovid (pomalidomide) — a proprietary, distinct, small molecule that is administered orally and modulates the immune system
and other biologically important targets. Pomalyst/Imnovid is indicated for patients with multiple myeloma who have received at least
two prior therapies including lenalidomide and a proteasome inhibitor and have demonstrated disease progression on or within 60 days
of completion of the last therapy.
8
2019 Annual Report
Sprycel (dasatinib) — an oral inhibitor of multiple tyrosine kinase indicated for the first-line treatment of adults with Philadelphia
chromosome-positive CML in chronic phase and the treatment of adults with chronic, accelerated, or myeloid or lymphoid blast phase
CML with resistance or intolerance to prior therapy, including Gleevec* (imatinib mesylate).
• U.S. revenues increased due to higher average net selling price and higher demand.
• International revenues were unchanged in 2019, but may decline due to generic European competition.
Yervoy (ipilimumab) — a monoclonal antibody for the treatment of patients with unresectable or metastatic melanoma.
• U.S. revenues increased due to higher demand and higher average net selling price.
• International revenues increased due to higher demand as a result of approvals for additional indications and launches primarily
in Europe and Japan in 2018. Excluding foreign exchange impacts, revenue increased by 31% in 2019.
Abraxane (paclitaxel albumin-bound particles for injectable suspension) — a solvent-free protein-bound chemotherapy product that
combines paclitaxel with albumin using our proprietary nab® technology platform, and is used to treat breast cancer, NSCLC and pancreatic
cancer, among others.
Inrebic (fedratinib) — an oral kinase inhibitor with activity against wild type and mutationally activated JAK2 and FLT3. In August 2019,
the FDA approved Inrebic for the treatment of adult patients with intermediate-2 or high-risk primary or secondary (post-polycythemia
vera or post-essential thrombocythemia) myelofibrosis.
Reblozyl (luspatercept-aamt) — an erythroid maturation agent indicated for the treatment of anemia in adult patients with beta thalassemia
who require regular red blood cell transfusions. In November 2019, the FDA approved Reblozyl for the treatment of anemia in adult
patients with beta thalassemia who require RBC transfusions.
Baraclude (entecavir) — an oral antiviral agent for the treatment of chronic hepatitis B.
• International revenues decreased due to lower demand resulting from increased generic competition.
Vidaza (azacitidine for injection) — is a pyrimidine nucleoside analog that has been shown to reverse the effects of deoxyribonucleic
acid hypermethylation and promote subsequent gene re-expression and is indicated for treatment of patients with the following
myelodysplastic syndrome subtypes: refractory anemia or refractory anemia with ringed sideroblasts (if accompanied by neutropenia or
thrombocytopenia or requiring transfusions), refractory anemia with excess blasts, refractory anemia with excess blasts in transformation,
and CML.
Other Brands — includes all other brands, including those which have lost exclusivity in major markets, OTC brands and royalty revenue.
• International revenues decreased primarily due to divestiture of the UPSA business and certain other brands and continued
generic erosion.
Estimated End-User Demand
Pursuant to the SEC Consent Order described under “—SEC Consent Order”, we monitor the level of inventory on hand in the U.S.
wholesaler distribution channel and outside of the U.S. in the direct customer distribution channel. We are obligated to disclose products
with levels of inventory in excess of one month on hand or expected demand, subject to a de minimis exception. Estimated levels of
inventory in the distribution channel in excess of one month on hand for the following products were not material to our results of
operations as of the dates indicated. Below are international products that had estimated levels of inventory in the distribution channel
in excess of one month on hand at September 30, 2019.
Perfalgan, an analgesic product, had 2.6 months of inventory on hand internationally at direct customers compared to 2.5 months
of inventory on hand at June 30, 2019. The level of inventory on hand was primarily in the Gulf Countries due to inventory
build to mitigate the risk of product supply disruption in these markets as a result of the sale of the Anagni manufacturing plant
to Catalent Inc. in December 2019.
In the U.S., we generally determine our months on hand estimates using inventory levels of product on hand and the amount of out-
movement provided by our three largest wholesalers, which account for approximately 93% of total gross sales of U.S. products. Factors
that may influence our estimates include generic competition, seasonality of products, wholesaler purchases in light of increases in
wholesaler list prices, new product launches, new warehouse openings by wholesalers and new customer stockings by wholesalers. In
addition, these estimates are calculated using third-party data, which may be impacted by their recordkeeping processes.
9
Revlimid and Pomalyst are distributed in the U.S. primarily through contracted pharmacies under the Revlimid REMS and Pomalyst
REMS programs, respectively. These are proprietary risk-management distribution programs tailored specifically to provide for the safe
and appropriate distribution and use of Revlimid and Pomalyst. Internationally, Revlimid and Imnovid are distributed under mandatory
risk-management distribution programs tailored to meet local authorities’ specifications to provide for the products’ safe and appropriate
distribution and use. These programs may vary by country and, depending upon the country and the design of the risk-management
program, the product may be sold through hospitals or retail pharmacies. Abraxane, Inrebic and Vidaza are distributed through wholesaler
channel in the U.S. and direct customer distribution channel outside of the U.S.
Our non-U.S. businesses have significantly more direct customers. Information on available direct customer product level inventory and
corresponding out-movement information and the reliability of third-party demand information varies widely. We limit our direct customer
sales channel inventory reporting to where we can influence demand. When this information does not exist or is otherwise not available,
we have developed a variety of methodologies to estimate such data, including using historical sales made to direct customers and third-
party market research data related to prescription trends and end-user demand. Given the difficulties inherent in estimating third-party
demand information, we evaluate our methodologies to estimate direct customer product level inventory and to calculate months on hand
on an ongoing basis and make changes as necessary. Factors that may affect our estimates include generic competition, seasonality of
products, price increases, new product launches, new warehouse openings by direct customers, new customer stockings by direct customers
and expected direct customer purchases for governmental bidding situations. As such, all of the information required to estimate months
on hand in the direct customer distribution channel for non-U.S. business for the year ended December 31, 2019 is not available prior to
the filing of this 2019 Form 10-K. We will disclose any product with levels of inventory in excess of one month on hand or expected
demand, subject to a de minimis exception, in the next quarterly report on Form 10-Q.
Expenses
Dollar in Millions 2019 2018 2019 vs 2018
Cost of products sold(a) $ 8,078 $ 6,467 25 %
Marketing, selling and administrative 4,871 4,551 7%
Research and development 6,148 6,332 (3)%
Amortization of acquired intangible assets 1,135 97 **
Other (income)/expense, net 938 (854) **
Total Expenses $ 21,170 $ 16,593 28 %
** In excess of +/- 100%.
(a) Excludes amortization of acquired intangible assets.
Cost of products sold
Cost of products sold include material, internal labor and overhead costs from our owned manufacturing sites, third-party product supply
costs and other supply chain costs managed by our global manufacturing and supply organization. Cost of products sold also includes
royalties and profit sharing, certain excise taxes and foreign currency hedge settlement gains and losses. Cost of products sold typically
vary between periods as a result of product mix and volume (particularly royalties and profit sharing), and to a lesser extent changes in
foreign currency, price, inflation and costs attributed to manufacturing site exits. Cost of products sold excludes amortization from acquired
intangible assets.
• Cost of products sold increased by $1.6 billion due to higher royalties and profit sharing of $702 million primarily from higher
Eliquis sales, unwinding of inventory fair value adjustments of $660 million, an impairment charge of $126 million for a
manufacturing and packaging facility and higher product sales.
Marketing, selling and administrative
Marketing, selling and administrative expenses primarily include salary and benefit costs, third-party professional and marketing fees,
outsourcing fees, shipping and handling costs, advertising and product promotion costs. Expenses are managed through regional
commercialization organizations or global enabling functions such as finance, legal, information technology and human resources. Certain
expenses are shared with alliance partners based upon contractual agreements.
• Marketing, selling and administrative expenses increased by $320 million in 2019 primarily due to Celgene expenses of
approximately $400 million, partially offset by foreign exchange impact of 2%.
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2019 Annual Report
Research and development
Research and development activities include discovery research, preclinical and clinical development, drug formulation and medical
support of marketed products. Expenses include salary and benefit costs, third-party grants and fees paid to clinical research organizations,
supplies, upfront and contingent milestone payments for licensing and asset acquisitions of investigational compounds, IPRD impairment
charges and proportionate allocations of enterprise-wide costs. The allocations include facilities, information technology, employee stock
compensation costs and other appropriate costs. Certain expenses are shared with alliance partners based upon contractual agreements.
Expenses typically vary between periods for a number of reasons, including the timing of license and asset acquisition charges and IPRD
impairment charges.
• Research and development expense decreased by $184 million in 2019 due to $1.1 billion of Nektar related charges in 2018,
partially offset by Celgene expenses of approximately $500 million and higher investment in IO and other immunology
development programs.
Significant charges included in R&D expense were as follows:

Dollars in Millions 2019 2018
License and asset acquisition charges $ 25 $ 1,135
IPRD impairments 32 —
Employee compensation charges 33 —
Site exit and other costs 167 79
Research and development significant charges $ 257 $ 1,214
• License and asset acquisition charges resulted from strategic transactions to acquire or license certain investigational compounds
(or options to acquire or license) as disclosed in “—Acquisitions, Divestitures, Licensing and Collaboration Arrangements.”
Significant charges include an up-front charge of $1.1 billion related to Nektar in 2018; a $60 million milestone for Cormorant
Pharmaceuticals in 2018 and $25 million milestones in 2019 and 2018 for IFM Therapeutics, Inc.
• IPRD impairment charges includes the discontinued development of an investigational compound previously acquired with
Medarex.
• Employee compensation charges resulted from the impact of retention and sign-on arrangements in connection with the Celgene
transaction.
• Site exit and other costs include $79 million in 2019 and 2018 resulting from the expected exit of R&D sites in the U.S. and an
$85 million charge in 2019 resulting from the purchase of priority review voucher expected to be used with an on-going
development program.
Amortization of Acquired Intangible Assets
Amortization of intangible assets acquired as a result of business combinations.
• Amortization of acquired intangible assets increased by $1.0 billion in 2019 as a result of the marketed product rights acquired
with the Celgene transaction.
Other (income)/expense, net
• Other (income)/expense, net changed by $1.8 billion in 2019 primarily due to $2.0 billion of costs and expenses resulting from
the Celgene transaction and a $1.6 billion pension settlement charge, partially offset by a $1.2 billion gain on the sale of the
UPSA business and equity investments fair value adjustments.
11
Components of Other (income)/expense, net were as follows:

Interest expense $ 656 $ 183
Pension and postretirement 1,599 (27)
Royalties and licensing income (1,360) (1,353)
Divestiture gains (1,168) (178)
Acquisition expenses 657 —
Contingent value rights 523 —
Investment income (464) (173)
Integration expenses 415 —
Provision for restructuring 301 131
Equity investment (gains)/losses (279) 512
Litigation and other settlements 77 76
Transition and other service fees (37) (12)
Intangible asset impairment 15 64
Equity in net loss/(income) of affiliates 4 (93)
Other (1) 16
Other (income)/expense, net $ 938 $ (854)
• Interest expense includes interest incurred on the approximately $19.0 billion of notes issued in May 2019 (including $340
million incurred prior to the Celgene acquisition date) and approximately $19.9 billion of Celgene debt acquired in the 2019
exchange offer. Interest expense was reduced by $18 million of amortization of the purchase price adjustment attributed to
Celgene's debt.
• Pension and postretirement includes pension settlement charges, including $1.6 billion primarily relating to the termination of
the Bristol-Myers Squibb Retirement Income Plan in 2019.
• Royalties and licensing income primarily includes diabetes royalties of $650 million in 2019 and $661 million in 2018, and
Keytruda* royalties of $545 million in 2019 and $343 million in 2018. In addition, Erbitux* royalties of $145 million, a $50
million fee for amending a royalty rate and a $25 million sales-based milestone were included in 2018.
• Divestiture gains resulted from the divestiture of the UPSA business in 2019 and multiple mature global product lines in 2018.
• Acquisition expenses include the following items related to the Celgene transaction: (1) upfront bridge facility commitment,
term loan and debt exchange fees of $135 million, (2) acquisition financing hedge losses of $278 million and (3) financial
advisory, legal, proxy filing and other transaction costs of $244 million.
• Contingent value rights include fair value adjustments resulting from changes in the traded price of the securities.
• Investment income includes $197 million of interest income earned on the net proceeds of the new notes issued prior to the
Celgene transaction. The net proceeds were used to fund a portion of the Celgene acquisition cash consideration and to pay
related fees and expenses.
• Integration expenses include consulting fees incurred in connection with Celgene integration activities.
• Restructuring charges include exit costs primarily related to employee termination benefits and contract terminations.
Restructuring charges related to the prior company transformation initiatives were $45 million in 2019 and $131 million in 2018.
Restructuring charges related to the Celgene transaction were $256 million in 2019, including $145 million of accelerated vesting
of Celgene equity awards. Refer to “Consolidated Financial Statements—Note 6. Restructuring” for further information.
• Equity investment (gains)/losses includes fair value adjustments related to equity investments in uniQure N.V., Nektar and other
equity investments obtained in the Celgene transaction. In addition, $80 million related to the termination of our Europe and
Asia partnership with Sanofi in 2019.
• Litigation and other settlements include $75 million related to a government pricing matter in 2019 and $70 million related to
intellectual property and product liability settlements in 2018.
• Intangible asset impairment includes $64 million in 2018 for an out-licensed asset obtained in the acquisition of ZymoGenetics,
Inc., which did not meet its primary endpoint in a Phase II clinical study.
• Equity in net loss/(income) of affiliates is primarily related to our partnership with Sanofi in Europe and Asia, which was
terminated in 2019 and other investments in limited partnerships.
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2019 Annual Report
Income Taxes
Earnings Before Income Taxes $ 4,975 $ 5,968
Provision for Income Taxes 1,515 1,021
Effective Tax Rate 30.5% 17.1%
Impact of Specified Items 15.7% —

Effective Tax Rate Excluding Specified Items 14.8% 17.1%
The tax impact attributed to specified items, including the Otezla* divestiture, certain non-deductible expenses and purchase price
adjustments, increased the effective tax rate by 15.7% in 2019. Taxes attributed to internal cash repatriations in 2018, lower state taxes
in 2019, Swiss tax reform and other adjustments upon finalization of the 2018 tax returns accounted for a 2.3% reduction in the effective
income tax rates compared to the prior period. Tax reserve releases due to lapse of statutes were $81 million in 2019 and $119 million
in 2018. Refer to “Consolidated Financial Statements—Note 7. Income Taxes” for further information.
Non-GAAP Financial Measures
Our non-GAAP financial measures, including non-GAAP earnings and related EPS information, are adjusted to exclude certain costs,
expenses, gains and losses and other specified items that are evaluated on an individual basis. These items are adjusted after considering
their quantitative and qualitative aspects and typically have one or more of the following characteristics, such as being highly variable,
difficult to project, unusual in nature, significant to the results of a particular period or not indicative of future operating results. Similar
charges or gains were recognized in prior periods and will likely reoccur in future periods including (1) amortization of acquired intangible
assets beginning in the fourth quarter of 2019, including product rights that generate a significant portion of our ongoing revenue and
will recur until the intangible assets are fully amortized, (2) unwind of inventory fair value adjustments, (3) acquisition and integration
expenses, (4) restructuring costs, (5) accelerated depreciation and impairment of property, plant and equipment and intangible assets, (6)
R&D charges or other income resulting from upfront or contingent milestone payments in connection with the acquisition or licensing
of third-party intellectual property rights, (7) costs of acquiring a priority review voucher, (8) divestiture gains or losses, (9) stock
compensation resulting from accelerated vesting of Celgene awards and certain retention-related compensation charges related to the
Celgene transaction, (10) pension, legal and other contractual settlement charges, (11) interest expense on the notes issued in May 2019
prior to our Celgene transaction and interest income earned on the net proceeds of those notes and (12) amortization of fair value
adjustments of debt acquired from Celgene in our 2019 exchange offer, among other items. Deferred and current income taxes attributed
to these items are also adjusted for considering their individual impact to the overall tax expense, deductibility and jurisdictional tax rates.
Certain other significant tax items are also excluded such as the impact of the U.S. tax reform. We also provide international revenues
for our priority products excluding the impact of foreign exchange. Reconciliations of these non-GAAP measures to the most comparable
GAAP measures are included in Exhibit 99.2 to our Form 8-K filed on February 6, 2020 and are incorporated herein by reference.
Non-GAAP information is intended to portray the results of our baseline performance, supplement or enhance management, analysts and
investors' overall understanding of our underlying financial performance and facilitate comparisons among current, past and future periods.
For example, non-GAAP earnings and EPS information is an indication of our baseline performance before items that are considered by
us to not be reflective of our ongoing results. In addition, this information is among the primary indicators that we use as a basis for
evaluating performance, allocating resources, setting incentive compensation targets and planning and forecasting for future periods.
This information is not intended to be considered in isolation or as a substitute for net earnings or diluted EPS prepared in accordance
with GAAP and may not be the same as or comparable to similarly titled measures presented by other companies due to possible differences
in method and in the items being adjusted. We encourage investors to review our financial statements and publicly-filed reports in their
entirety and not to rely on any single financial measure.
Amortization of acquired intangible assets were previously included in non-GAAP earnings and EPS information. These amounts have
become significant to the financial results subsequent to the Celgene acquisition and as a result, have been excluded in the non-GAAP
results to better reflect our core operating performance. Comparable prior period non-GAAP results have not been revised to include this
adjustment as the related amounts were insignificant ($97 million in 2018).
13
Specified items were as follows:

Inventory purchase price accounting adjustments $ 660 $ —
Cost of products sold 858 58

Marketing, selling and administrative 36 2
License and asset acquisition charges 25 1,135

IPRD impairments 32 —
Research and development 257 1,214
Amortization of acquired intangible assets 1,062 —
Interest expense 322 —

Pension and postretirement 1,635 121
Royalties and licensing income (24) (75)
Divestiture gains (1,168) (177)
Acquisition expenses 657 —
Contingent value rights 523 —
Investment income (197) —
Integration expenses 415 —
Provision for restructuring 301 131
Equity investment (gains)/losses (279) 512
Litigation and other settlements 75 70
Intangible asset impairment — 64
Other 2 —
Other (income)/expense, net 2,262 646
Increase to pretax income 4,475 1,920
Income taxes on items above (687) (268)

Income taxes attributed to Otezla* divestiture 808 —
Income taxes attributed to U.S. tax reform — (56)
Income taxes 121 (324)
Increase to net earnings $ 4,596 $ 1,596
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2019 Annual Report
The reconciliations from GAAP to Non-GAAP were as follows:

Dollars in Millions, except per share data 2019 2018
Net Earnings Attributable to BMS used for Diluted EPS Calculation — GAAP $ 3,439 $ 4,920
Specified Items 4,596 1,596
Net Earnings Attributable to BMS used for Diluted EPS Calculation — Non-GAAP $ 8,035 $ 6,516
Weighted Average Common Shares Outstanding — Diluted 1,712 1,637
Diluted EPS Attributable to BMS — GAAP $ 2.01 $ 3.01

Diluted EPS Attributable to Specified Items 2.68 0.97
Diluted EPS Attributable to BMS — Non-GAAP $ 4.69 $ 3.98
Financial Position, Liquidity and Capital Resources
Our net (debt)/cash position was as follows:

December 31,
Cash and cash equivalents $ 12,346 $ 6,911
Marketable debt securities — current 3,047 1,848
Marketable debt securities — non-current 767 1,775
Total cash, cash equivalents and marketable debt securities 16,160 10,534
Short-term debt obligations (3,346) (1,703)
Long-term debt (43,387) (5,646)
Net (debt)/cash position(a) $ (30,573) $ 3,185
(a) Prior period amounts were conformed to current period presentation.
Cash, cash equivalents and marketable securities held in the U.S. were approximately $13.6 billion at December 31, 2019. We expect
flexibility in accessing cash and future cash that may be generated in foreign subsidiaries. We believe that our existing cash, cash equivalents
and marketable securities together with cash generated from operations and if required, the issuance of commercial paper supported by
our credit facilities will be sufficient to satisfy our anticipated cash needs for at least the next few years, including dividends, capital
expenditures, milestone payments, contingent value rights, working capital, restructuring initiations, business development, deemed
repatriation transition tax and $2.8 billion of debt maturing in 2020.
Management continuously evaluates the capital structure to ensure the Company is financed efficiently, which may result in the repurchase
of common stock and debt securities, termination of interest rate swap contracts prior to maturity and issuance of debt securities. We may
purchase CVRs issued in connection with the Celgene transaction. We repurchased 105 million shares of our common stock for $5.9
billion in 2019, including 99 million shares for $5.6 billion under our accelerated share repurchase program announced on November
20, 2019. Our Board of Directors approved an increase of $5 billion to the share repurchase authorization for the Company's common
stock in February 2020, increasing the total outstanding share repurchase authorization, after giving effect to the $5.9 billion share
repurchase in 2019, to approximately $6.0 billion.
Dividend payments were $2.7 billion in 2019 and $2.6 billion in both 2018 and 2017. Dividend decisions are made on a quarterly basis
by our Board of Directors. Annual capital expenditures were approximately $800 million in 2019, $1.0 billion in 2018 and $1.1 billion
in 2017 and are expected to be approximately $900 million in 2020 and $1.3 billion in 2021. We continue to expand our biologics
manufacturing capabilities and other facility-related activities. For example, we constructed a new large-scale biologics manufacturing
facility in Ireland that was approved by the FDA in December 2019 and by the EU in January 2020. The facility is expected to produce
multiple therapies for our growing biologics portfolio.
Our investment portfolio includes non-current marketable securities, which are subject to changes in fair value as a result of interest rate
fluctuations and other market factors. Our investment policy establishes limits on the amount and time to maturity of investments with
any institution. The policy also requires that investments are only entered into with corporate and financial institutions that meet high
credit quality standards. Refer to “Consolidated Financial Statements—Note 9. Financial Instruments and Fair Value Measurements” for
further information.
Under our commercial paper program, we may issue a maximum of $5 billion unsecured notes that have maturities of not more than 366
days from the date of issuance. There were no commercial paper borrowings outstanding as of December 31, 2019.
15
As of December 31, 2019, we had four revolving credit facilities totaling $6.0 billion, which consisted of a 364-day $2.0 billion facility
expiring in January 2021, a $1.0 billion facility expiring in January 2022 and two five-year $1.5 billion facilities that were extended to
September 2023 and July 2024, respectively. The facilities provide for customary terms and conditions with no financial covenants and
may be used to provide backup liquidity for our commercial paper borrowings. Our $1.0 billion facility and our two $1.5 billion revolving
facilities are extendable annually by one year on the anniversary date with the consent of the lenders. Our 364-day $2.0 billion facility
can be renewed for one year on each anniversary date, subject to certain terms and conditions. No borrowings were outstanding under
any revolving credit facility at December 31, 2019 and 2018.
In May 2019, we issued an aggregate principal amount of approximately $19.0 billion of floating rate and fixed rate unsecured senior
notes at maturities ranging from 18 months to 30 years. In connection with the Celgene transaction, we also acquired approximately
$19.9 billion of Celgene debt in our 2019 exchange offer.
Economic and Market Factors
Additional regulations in the U.S. could be passed in the future including additional healthcare reform initiatives, further changes to tax
laws, additional pricing laws and potential importation restrictions which may reduce our results of operations, operating cash flow,
liquidity and financial flexibility. We continue to monitor the potential impact of the economic conditions in certain European and other
countries and the related impact on prescription trends, pricing discounts and creditworthiness of our customers. We believe these economic
conditions will not have a material impact on our liquidity, cash flow or financial flexibility.
The UK departed from the EU on January 31, 2020. The departure began a transition period that is set to end on December 31, 2020,
during which the UK and the EU will negotiate their future relationship. Similar to other companies in our industry, certain regulatory,
trade, labor and other aspects of our business will likely be affected during the transition period and over time. However, we currently
do not believe that these matters and other related financial effects will have a material impact on our consolidated results of operations,
financial position or liquidity. Our sales in the UK represent less than 3% of our total revenues.
The global health emergency concerning the spread of the 2019 Novel Coronavirus is currently unknown. Although we are not aware of
any material impact on our operations, we continue to monitor the situation very closely including the supply of our commercial and
clinical medicines in the region.
Credit Ratings
In November 2019, Moody's and S&P completed their ratings review of our acquisition of Celgene and concluded that the Company's
credit rating would remain unchanged. BMS's current long-term and short-term credit ratings assigned by Moody's Investors Service
were confirmed at A2 and Prime-1, respectively, with a negative long-term credit outlook. BMS's current long-term and short-term credit
ratings assigned by Standard & Poor's were confirmed at A+ and A-1+, respectively. The long-term ratings reflect the agencies' opinion
that we have a low default risk but are somewhat susceptible to adverse effects of changes in circumstances and economic conditions.
The short-term ratings reflect the agencies' opinion that we have good to extremely strong capacity for timely repayment. Any credit
rating downgrade may affect the interest rate of any debt we may incur, the fair market value of existing debt and our ability to access
the capital markets generally.
Cash Flows
The following is a discussion of cash flow activities:

Cash flow provided by/(used in):
Operating activities $ 8,067 $ 5,940
Investing activities (9,770) (874)
Financing activities 7,621 (3,535)
16
2019 Annual Report
Operating Activities
Cash flow from operating activities represents the cash receipts and disbursements from all of our activities other than investing and
financing activities. Operating cash flow is derived by adjusting net earnings for noncontrolling interest, non-cash operating items, gains
and losses attributed to investing and financing activities and changes in operating assets and liabilities resulting from timing differences
between the receipts and payments of cash and when the transactions are recognized in our results of operations. As a result, changes in
cash from operating activities reflect the timing of cash collections from customers and alliance partners; payments to suppliers, alliance
partners and employees; customer discounts and rebates; and tax payments in the ordinary course of business. For example, annual
employee bonuses are typically paid in the first quarter of the subsequent year. In addition, cash collections continue to be impacted by
longer payment terms for certain biologic products in the U.S., primarily our newer oncology products including Opdivo, Yervoy and
Empliciti (90 days in 2019 and 90 to 120 days in 2018). The longer payment terms are used to more closely align with the insurance
reimbursement timing for physicians and cancer centers following administration to the patients.
The $2.1 billion change in cash flow from operating activities compared to 2018 was primarily attributable to:
• Higher cash collections and timing of payments in the ordinary course of business of approximately $3.0 billion, including
approximately $1.0 billion relating to Celgene; and
• Lower R&D licensing and collaboration payments of approximately $1.0 billion primarily due to the Nektar transaction in 2018.
Partially offset by:
• Higher income tax payments of approximately $750 million; and
• Celgene acquisition and integration related payments of approximately $1.1 billion.
Investing Activities
Cash requirements from investing activities include cash used for acquisitions, manufacturing and facility-related capital expenditures
and purchases of marketable securities with original maturities greater than 90 days at the time of purchase reduced by proceeds from
business divestitures (including royalties) and the sale and maturity of marketable securities.
The $8.9 billion change in cash flow from investing activities compared to 2018 was primarily attributable to higher net acquisition and
other payments of approximately $23.4 billion primarily due to the acquisition of Celgene, partially offset by higher business divestiture
proceeds of approximately $14.6 billion primarily due to the divestitures of Otezla* and UPSA consumer health business.
Financing Activities
Cash requirements from financing activities include cash used to pay dividends, repurchase common stock and repay long-term debt and
other borrowings reduced by proceeds from the exercise of stock options and issuance of long-term debt and other borrowings.
The $11.2 billion change in cash flow from financing activities compared to 2018 was primarily attributable to higher net borrowing
activity of approximately $18.2 billion primarily resulting from the issuance of new notes in connection with the acquisition of Celgene,
partially offset by accelerated stock repurchase cash payment of $7.0 billion.
Contractual Obligations and Off-Balance Sheet Arrangements
Payments due by period for our contractual obligations at December 31, 2019 were as follows:
Obligations Expiring by Period
Dollars in Millions Total 2020 2021 2022 2023 2024 Later Years
Short-term borrowings $ 583 $ 583 $ — $ — $ — $ — $ —
Long-term debt 44,335 2,750 2,000 4,750 3,267 4,286 27,282
Interest on long-term debt(a) 21,659 1,627 1,483 1,428 1,292 1,191 14,638
Operating leases 966 165 145 130 104 68 354
Purchase obligations 3,353 1,143 717 526 384 262 321
Uncertain tax positions(b) 85 85 — — — — —
Deemed repatriation transition tax 3,416 119 339 339 567 798 1,254
Total(c) $ 74,397 $ 6,472 $ 4,684 $ 7,173 $ 5,614 $ 6,605 $ 43,849
(a) Includes estimated future interest payments and periodic cash settlements of derivatives.
(b) Includes only short-term uncertain tax benefits because of uncertainties regarding the timing of resolution.
(c) Excludes other non-current liabilities because of uncertainties regarding the timing of resolution.
17
We are committed to an aggregate $20.7 billion of potential future research and development milestone payments to third parties for in-
licensing, asset acquisitions and development programs including early-stage milestones of $6.9 billion (milestones achieved through
Phase III clinical studies) and late-stage milestones of $13.8 billion (milestones achieved post Phase III clinical studies). Payments
generally are due and payable only upon achievement of certain developmental and regulatory milestones for which the specific timing
cannot be predicted. Certain agreements also provide for sales-based milestones aggregating to $14.7 billion that we would be obligated
to pay to alliance partners upon achievement of certain sales levels in addition to royalties. We also have certain manufacturing,
development and commercialization obligations in connection with alliance arrangements. It is not practicable to estimate the amount of
these obligations. Refer to “Consolidated Financial Statements—Note 3. Alliances” for further information regarding our alliances.
Contingent value rights were issued in connection with the Celgene acquisition. These rights are measured at fair value and payments
are contingent upon the achievement of future regulatory milestones. Each CVR right will entitle the shareholder to receive a one-time
potential payment of $9.00 in cash only upon FDA approval of all three of the following milestones: (1) ozanimod by December 31,
2020, (2) liso-cel (JCAR017) by December 31, 2020, and (3) ide-cel (bb2121) by March 31, 2021. No payment will be made if any of
the milestones are not achieved and the CVRs will expire. The maximum potential payment under the CVRs is approximately $6.8 billion,
payable no later than 20 business days after the date on which the last milestone is achieved.
We do not have any off-balance sheet arrangements that are material or reasonably likely to become material to our financial condition
or results of operations.
SEC Consent Order / FCPA Settlement
As previously disclosed, on August 4, 2004, we entered into a final settlement with the SEC, concluding an investigation concerning
certain wholesaler inventory and accounting matters. The settlement was reached through a Consent, a copy of which was attached as
Exhibit 10 to our quarterly report on Form 10-Q for the period ended September 30, 2004.
Under the terms of the Consent, we agreed, subject to certain defined exceptions, to limit sales of all products sold to our direct customers
(including wholesalers, distributors, hospitals, retail outlets, pharmacies and government purchasers) based on expected demand or on
amounts that do not exceed approximately one month of inventory on hand, without making a timely public disclosure of any change in
practice. We also agreed in the Consent to certain measures that we have implemented including: (a) establishing a formal review and
certification process of our annual and quarterly reports filed with the SEC; (b) establishing a business risk and disclosure group;
(c) retaining an outside consultant to comprehensively study and help re-engineer our accounting and financial reporting processes;
(d) publicly disclosing any sales incentives offered to direct customers for the purpose of inducing them to purchase products in excess
of expected demand; and (e) ensuring that our budget process gives appropriate weight to inputs that come from the bottom to the top,
and not just from the top to the bottom, and adequately documenting that process.
We have established a company-wide policy concerning our sales to direct customers for the purpose of complying with the Consent,
which includes the adoption of various procedures to monitor and limit sales to direct customers in accordance with the terms of the
Consent. These procedures include a governance process to escalate to appropriate management levels potential questions or concerns
regarding compliance with the policy and timely resolution of such questions or concerns. In addition, compliance with the policy is
monitored on a regular basis.
We maintain DSAs with our U.S. pharmaceutical wholesalers, which account for nearly 100% of our gross U.S. revenues. Under the
current terms of the DSAs, our wholesaler customers provide us with weekly information with respect to months on hand product-level
inventories and the amount of out-movement of products. The three largest wholesalers currently account for approximately 93% of our
gross U.S. revenues. The inventory information received from our wholesalers, together with our internal information, is used to estimate
months on hand product level inventories at these wholesalers. We estimate months on hand product inventory levels for our U.S. business’s
wholesaler customers other than the three largest wholesalers by extrapolating from the months on hand calculated for the three largest
wholesalers. In contrast, our non-U.S. business has significantly more direct customers, limited information on direct customer product
level inventory and corresponding out-movement information and the reliability of third-party demand information, where available,
varies widely. Accordingly, we rely on a variety of methods to estimate months on hand product level inventories for these business units.
We believe the above-described procedures provide a reasonable basis to ensure compliance with the Consent.
Recently Issued Accounting Standards
For recently issued accounting standards, refer to “Consolidated Financial Statements—Note 1. Accounting Policies and Recently Issued
Accounting Standards.”
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2019 Annual Report
Critical Accounting Policies
The preparation of financial statements requires the use of estimates and assumptions that affect the reported amounts of assets and
liabilities and the reported amounts of revenue and expenses. Our critical accounting policies are those that significantly affect our financial
condition and results of operations and require the most difficult, subjective or complex judgments, often because of the need to make
estimates about the effect of matters that are inherently uncertain. Because of this uncertainty, actual results may vary from these estimates.
Revenue Recognition
Our accounting policy for revenue recognition has a substantial impact on reported results and relies on certain estimates. Revenue is
recognized following a five-step model: (1) identify the customer contract; (2) identify the contract's performance obligation; (3) determine
the transaction price; (4) allocate the transaction price to the performance obligation; and (5) recognize revenue when or as a performance
obligation is satisfied. Revenue is also reduced for GTN sales adjustments discussed below, all of which involve significant estimates
and judgment after considering legal interpretations of applicable laws and regulations, historical experience, payer channel mix (e.g.
Medicare or Medicaid), current contract prices under applicable programs, unbilled claims and processing time lags and inventory levels
in the distribution channel. Estimates are assessed each period and adjusted as required to revise information or actual experience.
The following categories of GTN adjustments involve significant estimates, judgments and information obtained from external sources.
Refer to “Consolidated Financial Statements—Note 2. Revenue.” for further discussion and analysis of each significant category of GTN
sales adjustments.
Charge-backs and cash discounts
Our U.S. business participates in programs with government entities, the most significant of which are the U.S. Department of Defense
and the U.S. Department of Veterans Affairs, and other parties, including covered entities under the 340B Drug Pricing Program, whereby
pricing on products is extended below wholesaler list price to participating entities. These entities purchase products through wholesalers
at the lower program price and the wholesalers then charge us the difference between their acquisition cost and the lower program price.
Accounts receivable is reduced for the estimated amount of unprocessed charge-back claims attributable to a sale (typically within a two
to four week time lag).
In the U.S. and certain other countries, cash discounts are offered as an incentive for prompt payment, generally approximating 2% of
the sales price. Accounts receivable is reduced for the estimated amount of unprocessed cash discounts (typically within a one month
time lag).
Medicaid and Medicare rebates
Our U.S. business participates in state government Medicaid programs and other qualifying Federal and state government programs
requiring discounts and rebates to participating state and local government entities. All discounts and rebates provided through these
programs are included in our Medicaid rebate accrual. Medicaid rebates have also been extended to drugs used in managed Medicaid
plans. The estimated amount of unpaid or unbilled rebates is presented as a liability.
Rebates and discounts are offered to managed healthcare organizations in the U.S. managing prescription drug programs and Medicare
Advantage prescription drug plans covering the Medicare Part D drug benefit. We also pay a 70% point of service discount to the CMS
when the Medicare Part D beneficiaries are in the coverage gap (“donut hole”). The estimated amount of unpaid or unbilled rebates and
discounts is presented as a liability.
Other rebates, returns, discounts and adjustments
Other GTN sales adjustments include sales returns and all other programs based on applicable laws and regulations for individual non-
U.S. countries as well as rebates offered to managed healthcare organizations in the U.S. to a lesser extent. The non-U.S. programs include
several different pricing schemes such as cost caps, volume discounts, outcome-based pricing schemes and pricing claw-backs that are
based on sales of individual companies or an aggregation of all companies participating in a specific market. The estimated amount of
unpaid or unbilled rebates and discounts is presented as a liability.
Estimated returns for established products are determined after considering historical experience and other factors including levels of
inventory in the distribution channel, estimated shelf life, product recalls, product discontinuances, price changes of competitive products,
introductions of generic products, introductions of competitive new products and lower demand following the LOE. Estimated returns
for new products are determined after considering historical sales return experience of similar products, such as those within the same
product line, similar therapeutic area and/or similar distribution model and estimated levels of inventory in the distribution channel and
projected demand. The estimated amount for product returns is presented as a liability.
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Use of information from external sources
Information from external sources is used to estimate GTN adjustments. Our estimate of inventory at the wholesalers is based on the
projected prescription demand-based sales for our products and historical inventory experience, as well as our analysis of third-party
information, including written and oral information obtained from certain wholesalers with respect to their inventory levels and sell-
through to customers and third-party market research data, and our internal information. The inventory information received from
wholesalers is a product of their recordkeeping process and excludes inventory held by intermediaries to whom they sell, such as retailers
and hospitals.
We have also continued the practice of combining retail and mail prescription volume on a retail-equivalent basis. We use this methodology
for internal demand forecasts. We also use information from external sources to identify prescription trends, patient demand and average
selling prices. Our estimates are subject to inherent limitations of estimates that rely on third-party information, as certain third-party
information was itself in the form of estimates, and reflect other limitations including lags between the date as of which third-party
information is generated and the date on which we receive third-party information.
Long-lived Assets
Intangible Assets Valuations
A significant amount of the purchase price for the Celgene acquisition was allocated to intangible assets, including commercially marketed
products and IPRD assets. Our intangible assets were $64.0 billion as of December 31, 2019 and $1.1 billion as of December 31, 2018.
Identifiable intangible assets are measured at their respective fair values as of the acquisition date. We engaged an independent third-
party valuation firm to assist in determining the fair values of these assets as of the acquisition date. The fair value of these assets were
estimated using discounted cash flow models. These models required the use of the following significant estimates and assumptions
among others:
• Identification of product candidates with sufficient substance requiring separate recognition;

• Estimates of revenues and operating profits related to commercial products or product candidates;
• Eligible patients, pricing and market share used in estimating future revenues;
• Probability of success for unapproved product candidates and additional indications for commercial products;
• Resources required to complete the development and approval of product candidates;
• Timing of regulatory approvals and exclusivity;
• Appropriate discount rate by products;
• Market participant income tax rates; and
• Allocation of expected synergies to products.
We believe the estimated and preliminary fair value assigned to intangible assets acquired used reasonable estimates and assumptions
considering the facts and circumstances as of the acquisition date.
Impairment and Amortization of Long-lived Assets, including Intangible Assets
Long-lived assets include intangible assets and property, plant and equipment and are reviewed for impairment whenever events or
changes in circumstances indicate that the carrying amount of the assets may not be recoverable or at least annually for IPRD. Intangible
assets are highly vulnerable to impairment charges, particularly newly acquired assets for recently launched products or IPRD. These
assets are initially measured at fair value and therefore any reduction in expectations used in the valuations could potentially lead to
impairment. Some of the more common potential risks leading to impairment include competition, earlier than expected LOE, pricing
reductions, adverse regulatory changes or clinical study results, delay or failure to obtain regulatory approval for initial or follow on
indications and unanticipated development costs, inability to achieve expected synergies resulting from cost savings and avoidance,
higher operating costs, changes in tax laws and other macro-economic changes. The complexity in estimating the fair value of intangible
assets in connection with an impairment test is similar to the initial valuation. If the carrying value of long-lived assets exceeds its fair
value, then the asset is written-down to its fair value. Expectations of future cash flows are subject to change based upon the near and
long-term production volumes and margins generated by the asset as well as any potential alternative future use. The estimated useful
lives of long-lived assets is subjective and requires significant judgment regarding patent lives, future plans and external market factors.
Long-lived assets are also periodically reviewed for changes in facts or circumstances resulting in a reduction to the estimated useful life
of the asset, requiring the acceleration of depreciation.
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2019 Annual Report
Goodwill
Goodwill represents the excess of the consideration transferred over the estimated fair values of net assets acquired in a business
combination. Goodwill was $22.5 billion and $6.5 billion as of December 31, 2019 and 2018, respectively.
We assess the goodwill balance within our single reporting unit annually and whenever events or changes in circumstances indicate the
carrying value of goodwill may not be recoverable to determine whether any impairment in this asset may exist and, if so, the extent of
such impairment. Goodwill is reviewed for impairment by assessing qualitative factors, including comparing our market capitalization
to the carrying value of our assets. Events or circumstances that might require an interim evaluation include unexpected adverse business
conditions, economic factors, unanticipated technological changes or competitive activities and acts by governments and courts.
Assets Held-for-Sale
The following criteria is considered before concluding assets are classified as held-for-sale: (1) management’s commitment to a plan to
sell, (2) availability for immediate sale in its present condition, (3) initiation of an active program to identify a buyer, (4) probability of
a completed sale within one year, (5) actively marketed for sale at a reasonable price in relation to its current fair value, and (6) likelihood
of significant changes to the plan will be made or that the plan will be withdrawn. If all of the criteria are met as of the balance sheet
date, the assets and liabilities are presented separately in the balance sheet as held-for-sale at the lower of their carrying amount or fair
value less costs to sell and are no longer depreciated or amortized while classified as held-for-sale.
Income Taxes
Valuation allowances are recognized to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized.
The assessment of whether or not a valuation allowance is required often requires significant judgment including long-range forecasts
of future taxable income and evaluation of tax planning initiatives. Adjustments to the deferred tax valuation allowances are made to
earnings in the period when such assessments are made. Our deferred tax assets were $2.1 billion at December 31, 2019 (net of valuation
allowances of $2.8 billion) and $1.6 billion at December 31, 2018 (net of valuation allowances of $3.2 billion).
The U.S. federal net operating loss carryforwards were $216 million at December 31, 2019. These carryforwards were acquired as a
result of certain acquisitions and are subject to limitations under Section 382 of the Internal Revenue Code. The net operating loss
carryforwards expire in varying amounts beginning in 2022. The foreign and state net operating loss carryforwards expire in varying
amounts beginning in 2019 (certain amounts have unlimited lives).
As discussed more fully in “Consolidated Financial Statements—Note 7. Income Taxes”, a provisional tax charge of $2.6 billion
attributable to the one-time deemed repatriation transition tax on certain foreign earnings was recognized in the fourth quarter of 2017.
The accounting for the reduction of deferred tax assets to the 21% tax rate was complete as of December 31, 2017, and the tax charge
for the deemed repatriation transition tax was completed as of December 31, 2018. The provisional tax charge for the deemed repatriation
transition tax was reduced by $56 million in 2018.
Prior to the Mead Johnson split-off in 2009, the following transactions occurred: (i) an internal spin-off of Mead Johnson shares while
still owned by us; (ii) conversion of Mead Johnson Class B shares to Class A shares; and (iii) conversion of Mead Johnson & Company
to a limited liability company. These transactions as well as the split-off of Mead Johnson through the exchange offer should qualify as
tax-exempt transactions under the Internal Revenue Code based upon a private letter ruling received from the Internal Revenue Service
related to the conversion of Mead Johnson Class B shares to Class A shares, and outside legal opinions.
Certain assumptions, representations and covenants by Mead Johnson were relied upon regarding the future conduct of its business and
other matters which could affect the tax treatment of the exchange. For example, the current tax law generally creates a presumption that
the exchange would be taxable to us, if Mead Johnson or its shareholders were to engage in transactions that result in a 50% or greater
change in its stock ownership during a four year period beginning two years before the exchange offer, unless it is established that the
exchange offer were not part of a plan or series of related transactions to effect such a change in ownership. If the internal spin-off or
exchange offer were determined not to qualify as a tax exempt transaction, the transaction could be subject to tax as if the exchange was
a taxable sale by us at market value.
In addition, a negative basis or excess loss account (“ELA”) existed in our investment in stock of Mead Johnson prior to these transactions.
We received an opinion from outside legal counsel to the effect that it is more likely than not that we eliminated the ELA as part of these
transactions and do not have taxable income with respect to the ELA. The tax law in this area is complex and it is possible that even if
the internal spin-off and the exchange offer is tax exempt under the Internal Revenue Code, the Internal Revenue Service could assert
that we have additional taxable income for the period with respect to the ELA. We could be exposed to additional taxes if this were to
occur. Based upon our understanding of the Internal Revenue Code and opinion from outside legal counsel, a tax reserve of $244 million
was established reducing the gain on disposal of Mead Johnson included in discontinued operations in 2009.
21
We agreed to certain tax related indemnities with Mead Johnson as set forth in the tax sharing agreement, including certain taxes related
to its business prior to the completion of the initial public offering and created as part of the restructuring to facilitate the IPO. Mead
Johnson has also agreed to indemnify us for potential tax effects resulting from the breach of certain representations discussed above as
well as certain transactions related to the acquisition of Mead Johnson’s stock or assets.
Liabilities are established for possible assessments by tax authorities resulting from known tax exposures including, but not limited to,
transfer pricing matters, tax credits and deductibility of certain expenses. Such liabilities represent a reasonable provision for taxes
ultimately expected to be paid and may need to be adjusted over time as more information becomes known.
For discussions on income taxes, refer to “Consolidated Financial Statements—Note 1. Accounting Policies and Recently Issued
Accounting Standards—Income Taxes” and “—Note 7. Income Taxes.”
Contingencies
In the normal course of business, we are subject to contingencies, such as legal proceedings and claims arising out of our business, that
cover a wide range of matters, including, among others, government investigations, shareholder lawsuits, product and environmental
liability, contractual claims and tax matters. We recognize accruals for such contingencies when it is probable that a liability will be
incurred and the amount of the loss can be reasonably estimated. These estimates are subject to uncertainties that are difficult to predict
and, as such, actual results could vary from these estimates.
For discussions on contingencies, refer to “Consolidated Financial Statements—Note 1. Accounting Policies and Recently Issued
Accounting Standards—Contingencies,” “—Note 7. Income Taxes” and “—Note 19. Legal Proceedings and Contingencies.”
Product and Pipeline Developments
Our R&D programs are managed on a portfolio basis from early discovery through late-stage development and include a balance of early-
stage and late-stage programs to support future growth. Our late stage R&D programs in Phase III development include both investigational
compounds for initial indications and additional indications or formulations for marketed products. Spending on these programs represent
approximately 40-50% of our annual R&D expenses in the last three years. Opdivo was the only investigational compound or marketed
product that represented greater than 10% of our R&D expenses in the last three years. Our late-stage development programs could
potentially have an impact on our revenue and earnings within the next few years if regulatory approvals are obtained and products are
successfully commercialized. The following are the developments in our marketed products and our late-stage pipeline:
Product Indication Date Developments
Announced the EC approval of a new indication for Revlimid, in combination with rituximab
December (anti-CD20 antibody), for the treatment of adult patients with previously treated FL (Grade 1-3a).
Revlimid FL This combination of Revlimid and rituximab (R2) is the first chemotherapy-free combination
2019
regimen approved for the patients with FL by the EC.
Announced findings from NAXOS (EvaluatioN of ApiXaban in strOke and Systemic embolism
prevention in patients with nonvalvular atrial fibrillation in the real-life setting in France), the
September largest real-world data analysis on OAC effectiveness and safety in Europe among patients with
2019 NVAF. In this analysis, Eliquis use was associated with a lower rate of major bleeding compared
to a vitamin K antagonist, rivaroxaban and dabigatran. These data were featured as a late-breaking
NVAF/ACS oral presentation at the European Society of Cardiology Congress 2019 in Paris, France.
Announced results from the Phase IV AUGUSTUS trial evaluating Eliquis versus vitamin K
antagonists (“VKAs”) in patients with NVAF and ACS and/or undergoing PCI. Results show that
March 2019 in patients receiving a P2Y12 inhibitor with or without aspirin (antiplatelet therapies), the
proportion of patients with major or clinically relevant non-major bleeding at six months was
significantly lower for those treated with Eliquis compared to those treated with a VKA.
Announced results from retrospective real-world data analyses reporting outcomes on the safety
Eliquis and effectiveness of Eliquis compared to low molecular weight heparin (“LMWH”) or warfarin
for the treatment of VTE in patients with active cancer. The real-world data analyses were
highlighted during oral presentations at the American Society of Hematology Annual Meeting in
December
VTE Orlando, Florida. Results from the primary analysis showed that Eliquis use was associated with
2019
lower rates of major bleeding, clinically-relevant non-major (“CRNM”) bleeding and recurrent
VTE compared to LMWH. Eliquis was also associated with a lower rate of recurrent VTE and
similar rates of major bleeding and CRNM bleeding compared to warfarin. Outcomes were defined
based on diagnosis codes and setting of care.
The BMS-Pfizer alliance announced the initiation of a new randomized controlled study, GUARD-
AF, to determine if earlier detection of atrial fibrillation through screening in previously
Atrial November
undiagnosed men and women at least 70 years of age in the U.S. ultimately impacts the rate of
Fibrillation 2019
stroke, compared to usual standard medical care. This study will also assess potential bleeding
leading to hospitalization, and therefore provide an evaluation of net clinical benefit or harm.
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2019 Annual Report
Ono, our alliance partner for Opdivo in Japan, announced the submission of a supplemental
application of Opdivo in Japan for additional indication of MSI-H unresectable advanced or
recurrent CRC that has progressed following chemotherapy for a partial change in the approved
CRC March 2019 items of the manufacturing and marketing approval. This is mainly based on the result from Phase
II CheckMate-142 study evaluating Opdivo in patients with MSI-H or dMMR recurrent or
metastatic CRC that has progressed on or after, or been intolerant of, at least one previous line of
treatment with chemotherapy including fluoropyrimidine anticancer drugs.
Announced results from the Phase III ATTRACTION-3 trial evaluating Opdivo versus
chemotherapy for the treatment of patients with unresectable advanced or recurrent ESCC
refractory or intolerant to combination therapy with fluoropyrimidine and platinum-based drugs.
September For the primary endpoint of overall survival, Opdivo demonstrated a statistically significant
2019 improvement over chemotherapy, with a 23% reduction in risk of death and a 2.5-month
ESCC improvement in median overall survival compared to patients treated with chemotherapy. The
safety profile for Opdivo in this trial was consistent with previously reported studies in ESCC
and other solid tumors.
Ono, our alliance partner for Opdivo in Japan, announced the submission of a supplemental
May 2019 application of Opdivo for indication of unresectable advanced or recurrent esophageal cancer in
Japan for a partial change in approved items of manufacturing and marketing approval.
Announced Phase III CheckMate-548 trial evaluating the addition of Opdivo to the current
standard of care (temozolomide and radiation therapy) versus the standard of care alone did not
September meet one of its primary endpoints, progression-free survival, in patients with newly diagnosed
2019 GBM that is MGMT-methylated. The data monitoring committee recommended that the trial
GBM continue as planned to allow the other primary endpoint, overall survival, to mature. The Company
remains blinded to all study data.
Announced Phase III CheckMate-498 trial evaluating Opdivo plus radiation versus temozolomide
May 2019 plus radiation in patients with newly diagnosed MGMT-unmethylated GBM did not meet its
primary endpoint of overall survival at final analysis.
Announced topline results from CheckMate-459, a randomized Phase III study evaluating Opdivo
versus sorafenib as a first-line treatment in patients with unresectable HCC. The trial did not
HCC June 2019
achieve statistical significance for its primary endpoint of overall survival per the pre-specified
analysis.
Opdivo Announced the EC approval of Opdivo flat dosing schedule of 240 mg infused over 30 minutes
October 2019 every
two weeks or 480 mg infused over 60 minutes every four weeks for the adjuvant treatment
of adult patients with melanoma with involvement of lymph nodes or metastatic disease who have
undergone complete resection.
Announced results of a three-year analysis of efficacy data from the Phase III CheckMate-238
study evaluating adjuvant use of Opdivo 3 mg/kg versus Yervoy 10 mg/kg in patients with Stage
September III or Stage IV melanoma who were at high risk of recurrence following complete surgical
2019 resection. At three years of follow-up, Opdivo continues to demonstrate superior recurrence-free
Melanoma survival compared to Yervoy, the active control, with recurrence-free survival rates of 58% and
45%, respectively.
Announced, with our alliance partner Nektar, that the FDA has granted Breakthrough Therapy
Designation for investigational agent bempegaldesleukin (NKTR-214) in combination with
Opdivo for the treatment of patients with previously untreated unresectable or metastatic
August 2019 melanoma. The Breakthrough Therapy Designation is based on clinical data which were recently
reported in the 2019 American Society of Clinical Oncology Annual Meeting from the cohort of
patients with metastatic melanoma that were treated with the doublet therapy in the ongoing
PIVOT-02 Phase I/II clinical study.
Announced long-term pooled efficacy and safety results from the Phase III CheckMate-017 and
CheckMate-057 studies in patients with previously treated advanced NSCLC. At five years,
September
patients treated with Opdivo continued to experience long-term overall survival (“OS”) benefit
2019
versus docetaxel. OS rate at five years were 13.4% for Opdivo and 2.6% for docetaxel. The OS
benefit for Opdivo-treated patients was observed across all subgroups.
NSCLC
Announced results from pooled analyses of survival data from four studies (CheckMate-017,
-057, -063 and -003) in patients with previously-treated advanced NSCLC who were treated with
April 2019 Opdivo. In the pooled analysis of the four studies, 14% of all Opdivo-treated patients were alive
at four years. Notably, in patients with PD-L1 greater than or equal to 1% and less than 1%, four-
year overall survival rate were 19% and 11%, respectively.
Received approval in China for Opdivo, as a monotherapy in treatment of patients with SCCHN
September
with disease progression on or after platinum-based therapy, and whose tumors have PD-L1
2019
SCCHN positive expression (defined as 1% of tumor cells expressing PD-L1)
January 2019 Acceptance

in China of sBLA filing for patients who had previously been treated for metastatic
or recurrent SCCHN.
23
Announced that the FDA accepted our sBLA and granted Breakthrough Therapy Designation for
November Opdivo in combination with Yervoy for the treatment of patients with advanced HCC previously
2019 treated with sorafenib. The FDA granted the application Priority Review with a PDUFA goal date
of March 10, 2020.
HCC Announced first results from Opdivo+Yervoy cohort of the Phase I/II CheckMate-040 study,
evaluating the IO combination in patients with advanced HCC previously treated with sorafenib.
June 2019 With a minimum follow-up of 28 months, the blinded independent central review objective
response rate was 31% per Response Evaluation Criteria in Solid Tumors version 1.1. At the time
of data cutoff the median duration of response was 17.5 months.
Announced results from an interim analysis of the Phase II CheckMate-650 trial evaluating Opdivo
+Yervoy in patients with mCRPC showed that among 32 asymptomatic or minimally symptomatic
patients whose disease had progressed after second-generation hormone therapy and who had not
mCRPC February 2019 received chemotherapy (cohort 1), with a median follow-up of 11.9 months, the objective response
rate was 25%. Additionally, among 30 patients whose disease progressed after taxane-based
chemotherapy (cohort 2), with a median follow-up of 13.5 months, the objective response rate
was 10%.
Announced results for one of the co-primary endpoints from CheckMate-915, a randomized Phase
III study evaluating Opdivo+Yervoy versus Opdivo alone for the adjuvant treatment of patients
who have had a complete surgical removal of stage IIIb/c/d or stage IV (no evidence of disease)
November melanoma. A statistically significant benefit was not reached for the co-primary endpoint of
2019 recurrence-free survival (“RFS”) in patients whose tumors expressed PD-L1 <1%. The Data
Monitoring Committee recommended that the study continue unchanged. The study remains
double-blinded and will continue to assess the other co-primary endpoint of RFS in the all-comer
(intent-to-treat) population.
Announced five-year results from the Phase III CheckMate-067 clinical trial, which continues to
September demonstrate improved overall survival with the first-line combination of Opdivo+Yervoy, versus
2019 Yervoy alone, in patients with advanced metastatic melanoma. With a minimum follow-up of 60
months (five years), five-year overall survival rates were 52% for the Opdivo+Yervoy
combination, 44% for Opdivo alone, and 26% for Yervoy alone.
Announced five-year analysis of the Phase I CA209-004 study, the longest follow-up for the
June 2019 Opdivo+Yervoy combination in patients with previously treated or untreated advanced melanoma
Melanoma to date. The analysis showed that with a median follow-up of 43.1 months (range: 0.9-76.7) in
Opdivo+Yervoy all patients, at four years or longer, overall survival rates were stable at 57%.
Announced that an analysis exploring long-term quality of life (“QoL”) and symptom burden in
the Phase III CheckMate-067 study found that QoL was maintained during the treatment-free
June 2019 interval, the period where a patient is off study treatment and free of subsequent therapy, in patients
with previously untreated unresectable or metastatic melanoma following discontinuation of
therapy with Opdivo or Opdivo+Yervoy.
Received FDA full approval for Opdivo in combination with Yervoy for the treatment of patients
with unresectable or metastatic melanoma based on additional longer term efficacy data from
CheckMate-067 (4-year overall survival) without restrictions in patient population. This approval
fulfills two Post Marketing Requirements to verify and describe clinical benefit, thereby
March 2019 converting prior accelerated approval to full approval for nivolumab in combination with
ipilimumab for patients with unresectable or metastatic melanoma and nivolumab monotherapy
for BRAF Mutant subjects with unresectable or metastatic melanoma. Importantly, based on FDA
review of the CheckMate-067 4-year overall survival data, the results of exploratory analyses by
PD-L1 tumor expression have been removed entirely from the label.
Announced voluntary withdrawal of the Company's application in the EU for the combination of
Opdivo and Yervoy for the treatment of advanced NSCLC based on data from CheckMate-227.
The application was originally filed in 2018 for patients with first-line NSCLC who have tumor
mutational burden 10 mutations/megabase, based on the final analysis of progression-free
survival, a co-primary endpoint in the trial. The application was subsequently amended to include
the statistically significant result of overall survival, a co-primary endpoint, from CheckMate-227
January 2020 Part 1a evaluating Opdivo+Yervoy versus chemotherapy in patients whose tumors expressed PD-
L1 1%.
Though the Committee for Medicinal Products for Human Use (“CHMP”) acknowledged the
NSCLC integrity of the patient level data, the CHMP determined a full assessment of the application was
not possible following multiple protocol changes the company made in response to rapidly
evolving science and data. The company has no plans to refile this application in the EU.
Announced that the FDA accepted our sBLA for Opdivo in combination with Yervoy for the first-
line treatment of patients with metastatic or recurrent NSCLC with no EGFR or ALK genomic
tumor aberrations. This application is based on data from Part 1 of the Phase 3 CheckMate -227
January 2020 trial evaluating Opdivo plus Yervoy versus chemotherapy in patients with previously untreated
NSCLC, in which the dual immunotherapy combination demonstrated significant improvement
in overall survival versus chemotherapy alone. The FDA granted the application Priority Review
with a PDUFA goal date of May 15, 2020.
24
2019 Annual Report
Announced results from Phase III CheckMate-9LA trial evaluating Opdivo plus low-dose Yervoy
given concomitantly with two cycles of chemotherapy as first-line treatment for patients with
advanced NSCLC, met its primary endpoint of superior overall survival at a pre-specified interim
October 2019 analysis. The comparator in this study was chemotherapy alone for up to four cycles followed by
optional maintenance therapy. The safety profile of Opdivo plus low-dose Yervoy and two cycles
of chemotherapy in CheckMate-9LA was reflective of the known safety profiles of the
immunotherapy and chemotherapy components in first-line NSCLC.
Announced results from Part 1 of the Phase III CheckMate-227 trial evaluating Opdivo plus low-
dose Yervoy as first-line treatment for patients with advanced NSCLC. Opdivo plus low-dose
Yervoy met the independent co-primary endpoint of overall survival, demonstrating superior
benefit compared to chemotherapy in patients whose tumors expressed PD-L1 1%. Additionally,
September
2019 in an exploratory analysis, results showed improved overall survival for patients treated with the
combination of Opdivo plus low-dose Yervoy with PD-L1 <1%. The two-year survival rate for
NSCLC patients treated with the combination regimen was 40% for both patients whose tumors expressed
PD-L1 1% and patients whose tumors expressed PD-L1 <1%. In the chemotherapy control arm,
two-year survival rates were 33% and 23%, respectively.
Announced Part 2 of the Phase III CheckMate-227 study evaluating Opdivo plus chemotherapy
Opdivo+Yervoy July 2019 versus chemotherapy did not meet its primary endpoint of overall survival in first-line non-
squamous NSCLC patients regardless of PD-L1 status.
Announced voluntary withdrawal of the Company's sBLA for the Opdivo plus low-
dose Yervoy for treatment of first-line advanced NSCLC in patients with TMB greater than or
equal to 10 mutations per megabase as data from CheckMate-227, Part 1a. After discussions with
January 2019 FDA, the Company believes further evidence on the relationship between TMB and PD-L1 is
required to fully evaluate the impact of Opdivo plus Yervoy on overall survival in first-line NSCLC
patients. This analysis will require availability of the final data from CheckMate-227, Part 1a,
which could not be provided on time within the review cycle of the current application.
Announced new results from the Phase III CheckMate-214 study, showing that therapy with
February 2019 Opdivo plus low-dose Yervoy continued to demonstrate long-term survival benefits in patients
RCC with previously untreated advanced or metastatic RCC.
January 2019 Announced

the EC approval of Opdivo plus low-dose Yervoy for previously untreated patients
with intermediate and poor-risk advanced RCC.
Announced topline results from the Phase II CheckMate-714 trial evaluating Opdivo versus
SCCHN April 2019 Opdivo+Yervoy in patients with recurrent or metastatic SCCHN. The study did not meet its primary
endpoints.
Announced that the FDA has granted Breakthrough Therapy Designation for Orencia for the
December prevention of moderate to severe acute GvHD in hematopoietic stem cell transplants from
GvHD unrelated donors. There are no approved therapies for the prevention of acute GvHD, a potentially
2019
life-threatening medical complication that can impact patients receiving such transplants for the
treatment of certain genetic diseases and hematologic cancers.
Received the EC notification on the adoption of the approval on our Orencia solution for
JIA April 2019 subcutaneous injection in pre-filled syringe extension application (50 mg & 87.5 mg strength)
and extension of indication for the treatment of polyarticular JIA in pediatric patients two years
of age and older.
Announced data from a Phase IV mechanistic study exploring differences in the cellular and
molecular mechanisms by which Orencia and another treatment, adalimumab, interfere with
Orencia disease progression in moderate-to-severe early RA patients seropositive for certain
autoantibodies. Among 80 adult patients with early moderate-to-severe RA who had never been
June 2019 treated with a biologic medication and tested positive for autoantibodies called anti-citrullinated
protein antibody and rheumatoid factor, numerically higher efficacy responses were seen with
Orencia at week 24. These results, which are from a prospective analysis of the Early AMPLE
RA head-to-head trial, are featured in a late-breaking oral presentation at the Annual European
Congress of Rheumatology.
Announced the submission of supplemental applications of “Orencia for Intravenous Infusion
250mg,” “Orencia 125mg Syringe for Subcutaneous Injection 1mL” and “Orencia 125mg
March 2019 Autoinjector for Subcutaneous Injection 1mL” to include the description of “inhibition of the
structural damage of the joints” in the currently approved indication of RA for a partial change
in approved items of the manufacturing and marketing approval in Japan.
Announced the EC approval of Sprycel, in both tablet and powder for oral suspension formulations,
Sprycel ALL February 2019 in combination with chemotherapy for the treatment of pediatric patients with newly diagnosed
Philadelphia chromosome-positive ALL.
25
Announced the sJNDA for Empliciti in combination with pomalidomide and dexamethasone
November (EPd) was approved by the Japan Ministry of Health, Labour and Welfare. Approval was based
2019 on a global Phase II trial (ELOQUENT-3) in EPd for the treatment of patients with MM who have
received at least two prior therapies, including lenalidomide and proteasome inhibitor.
Announced that the EC has approved Empliciti plus pomalidomide and low-dose dexamethasone
(EPd) for the treatment of adult patients with RRMM who have received at least two prior therapies,
August 2019 including lenalidomide and a proteasome inhibitor, and have demonstrated disease progression
on the last therapy.
Announced updated data from ELOQUENT-3, the international randomized Phase II study
evaluating Empliciti plus pomalidomide and dexamethasone (EPd) versus pomalidomide and
Empliciti Multiple dexamethasone (Pd) alone in patients with RRMM. In a non-prespecified analysis conducted to
Myeloma provide a descriptive assessment of overall survival after extended follow-up of at least 18.3
June 2019 months, patients treated with EPd continued to experience sustained and clinically relevant overall
survival and progression-free survival benefits compared with patients treated with Pd. These
data were presented at the 24th Congress of the European Hematology Association in a poster
display.
Completed filing of a supplemental Japanese New Drug Application (sJNDA) for Empliciti in
combination with pomalidomide and dexamethasone for the treatment of patients with multiple
myeloma who have received at least two prior therapies, including Revlimid and proteasome
February 2019 inhibitor. The sJNDA filing was submitted based on the results of a global phase II study. The
orphan designation was already granted for the indication of RRMM at the initial JNDA. This
sJNDA will also be reviewed under “priority review.”
Announced that following the late-cycle review meeting on December 4, 2019, BMS and
Acceleron Pharma Inc. were notified by the FDA that Reblozyl will not be reviewed at the Oncology
Drugs Advisory Committee (“ODAC”) meeting scheduled for December 18, 2019. The agency
December has informed BMS that the original Prescription Drug User Fee Act, or target action, date of April
Reblozyl MDS 4, 2020 for its sBLA for Reblozyl will remain, without the requirement for an ODAC review.
2019
BMS is seeking approval of Rebloyzl, an erythroid maturation agent representing a new class of
therapy, for the treatment of adult patients with very low- to intermediate-risk MDS-associated
anemia who have ring sideroblasts and require red blood cell transfusions.
Announced that the FDA has accepted for Priority Review its BLA for lisocabtagene maraleucel
(liso-cel), the company's autologous anti-CD19 CAR T-cell immunotherapy with a defined
composition of purified CD8+ and CD4+ CAR T cells for the treatment of adult patients with
relapsed or refractory large B-cell lymphoma after at least two prior therapies. The FDA has set
a Prescription Drug User Fee Act goal date of August 17, 2020.
liso-cel Lymphoma February 2020
Liso-cel has been granted Breakthrough Therapy and Regenerative Medicine Advanced Therapy
designations by the FDA for relapsed/refractory aggressive large B-cell non-Hodgkin lymphoma,
including diffuse large B-cell lymphoma (“DLBCL”), not otherwise specified (de novo or
transformed from indolent lymphoma), primary mediastinal B-cell lymphoma or Grade 3B
follicular lymphoma and Priority Medicines scheme by the EMA for relapsed/refractory DLBC.
Special Note Regarding Forward-Looking Statements
This 2019 Form 10-K (including documents incorporated by reference) and other written and oral statements we make from time to time
contain certain “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Exchange Act. You can identify these forward-looking statements by the fact they use words such as “should,” “could,”
“expect,” “anticipate,” “estimate,” “target,” “may,” “project,” “guidance,” “intend,” “plan,” “believe,” “will” and other words and terms
of similar meaning and expression in connection with any discussion of future operating or financial performance. One can also identify
forward-looking statements by the fact that they do not relate strictly to historical or current facts. Such forward-looking statements are
based on historical performance and current expectations and projections about our future financial results, goals, plans and objectives
and involve inherent risks, assumptions and uncertainties, including internal or external factors that could delay, divert or change any of
them in the next several years, and could cause our future financial results, goals, plans and objectives to differ materially from those
expressed in, or implied by, the statements. These statements are likely to relate to, among other things, our goals, plans and objectives
regarding our financial position, results of operations, cash flows, market position, product development, product approvals, sales efforts,
expenses, performance or results of current and anticipated products, our ability to realize the projected benefits of the acquisition of
Celgene and to successfully integrate Celgene's operations and the outcome of contingencies such as legal proceedings and financial
results. No forward-looking statement can be guaranteed. We have included important factors in the cautionary statements included in
our most recently filed 2019 Form 10-K, particularly under “Item 1A. Risk Factors,” that we believe could cause actual results to differ
materially from any forward-looking statement.
26
2019 Annual Report
Although we believe we have been prudent in our plans and assumptions, no assurance can be given that any goal or plan set forth in
forward-looking statements can be achieved and readers are cautioned not to place undue reliance on such statements, which speak only
as of the date made. Additional risks that we may currently deem immaterial or that are not presently known to us could also cause the
forward-looking events discussed in this 2019 Form 10-K not to occur. Except as otherwise required by federal securities law, we undertake
no obligation to release publicly any updates or revisions to any forward-looking statements as a result of new information, future events,
changed circumstances or otherwise after the date of this 2019 Form 10-K.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We are exposed to market risk resulting from changes in currency exchange rates and interest rates. Certain derivative financial instruments
are used when available on a cost-effective basis to hedge our underlying economic exposure. All of our financial instruments, including
derivatives, are subject to counterparty credit risk considered as part of the overall fair value measurement. Derivative financial instruments
are not used for trading purposes.
Foreign Exchange Risk
Significant amounts of our revenues, earnings and cash flow are exposed to changes in foreign currency rates. Our primary net foreign
currency translation exposures are the euro and Japanese yen. Foreign currency forward contracts are used to manage risk primarily
arising from certain intercompany sales and purchases transactions; we are also exposed to foreign exchange transaction risk arising from
non-functional currency denominated assets and liabilities and earnings denominated in non-U.S. dollar currencies. Foreign currency
forward contracts are used to offset these exposures but are not designated as hedges.
We estimate that a 10% appreciation in the underlying currencies being hedged from their levels against the U.S. dollar (with all other
variables held constant) would decrease the fair value of foreign exchange forward contracts by $358 million and $231 million at
December 31, 2019 and December 31, 2018, respectively, reducing earnings over the remaining life of the contracts.
We are also exposed to translation risk on non-U.S. dollar-denominated net assets. Non-U.S. dollar borrowings are used to hedge the
foreign currency exposures of our net investment in certain foreign affiliates and are designated as hedges of net investments. The effective
portion of foreign exchange gains or losses on these hedges is included in the foreign currency translation component of Accumulated
other comprehensive loss. If our net investment decreases below the equivalent value of the non-U.S. debt borrowings, the change in the
remeasurement basis of the debt would be subject to recognition in income as changes occur. For additional information, refer to
“Consolidated Financial Statements—Note 9. Financial Instruments and Fair Value Measurements.”
Interest Rate Risk
We use fixed-to-floating interest rate swap contracts designated as fair value hedges to provide an appropriate balance of fixed and floating
rate debt. We use cross-currency interest rate swap contracts designated to hedge the Company's net investment in its Japan subsidiary.
The fair values of these contracts as well as our marketable debt securities are analyzed at year-end to determine their sensitivity to interest
rate changes. In this sensitivity analysis, if there were a 100 basis point increase in short-term or long-term interest rates as of December 31,
2019 and December 31, 2018, the expected adverse impact on our earnings would not be material.
We estimate that an increase of 100 basis points in long-term interest rates at December 31, 2019 and December 31, 2018 would decrease
the fair value of long-term debt by $3.8 billion and $482 million, respectively.
Credit Risk
We monitor our investments with counterparties with the objective of minimizing concentrations of credit risk. Our investment policy is
to invest only in institutions that meet high credit quality standards and establishes limits on the amount and time to maturity of investments
with any individual counterparty. The policy also requires that investments are only entered into with corporate and financial institutions
that meet high credit quality standards.
The use of derivative instruments exposes us to credit risk if the counterparty fails to perform when the fair value of a derivative instrument
contract is positive. If the counterparty fails to perform, collateral is not required by any party whether derivatives are in an asset or
liability position. We have a policy of diversifying derivatives with counterparties to mitigate the overall risk of counterparty defaults.
For additional information, refer to “Consolidated Financial Statements—Note 9. Financial Instruments and Fair Value Measurements.”
27
CONSOLIDATED STATEMENTS OF EARNINGS
Dollars in Millions, Except Per Share Data

EARNINGS 2019 2018 2017
Net product sales $ 25,174 $ 21,581 $ 19,258
Alliance and other revenues 971 980 1,518
Total Revenues 26,145 22,561 20,776
Cost of products sold(a) 8,078 6,467 6,014

Marketing, selling and administrative 4,871 4,551 4,751
Research and development 6,148 6,332 6,468
Amortization of acquired intangible assets 1,135 97 97
Other (income)/expense, net 938 (854) (1,685)
Total Expenses 21,170 16,593 15,645
Earnings Before Income Taxes 4,975 5,968 5,131

Provision for Income Taxes 1,515 1,021 4,156
Net Earnings 3,460 4,947 975
Noncontrolling Interest 21 27 (32)
Net Earnings Attributable to BMS $ 3,439 $ 4,920 $ 1,007
Earnings per Common Share

Basic $ 2.02 $ 3.01 $ 0.61
Diluted 2.01 3.01 0.61
(a) Excludes amortization of acquired intangible assets.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Dollars in Millions

COMPREHENSIVE INCOME 2019 2018 2017
Net Earnings $ 3,460 $ 4,947 $ 975
Other Comprehensive Income/(Loss), net of taxes and reclassifications to earnings:
Derivatives qualifying as cash flow hedges (32) 70 (57)
Pension and postretirement benefits 1,203 53 214
Available-for-sale securities 36 (25) 39
Foreign currency translation 35 (254) 18
Total Other Comprehensive Income/(Loss) 1,242 (156) 214
Comprehensive Income 4,702 4,791 1,189

Comprehensive Income/(Loss) Attributable to Noncontrolling Interest 21 27 (32)
Comprehensive Income Attributable to BMS $ 4,681 $ 4,764 $ 1,221
The accompanying notes are an integral part of these consolidated financial statements.
28
2019 Annual Report
CONSOLIDATED BALANCE SHEETS
Dollars in Millions, Except Share and Per Share Data
December 31,
ASSETS 2019 2018
Current Assets:
Cash and cash equivalents $ 12,346 $ 6,911
Marketable debt securities 3,047 1,848
Receivables 7,685 5,747
Inventories 4,293 1,195
Other current assets 1,983 2,015
Total Current Assets 29,354 17,716
Property, plant and equipment 6,252 5,027
Goodwill 22,488 6,538
Other intangible assets 63,969 1,091
Deferred income taxes 510 815
Marketable debt securities 767 1,775
Other non-current assets 6,604 2,024
Total Assets $ 129,944 $ 34,986
LIABILITIES
Current Liabilities:
Short-term debt obligations $ 3,346 $ 1,703
Accounts payable 2,445 1,892
Other current liabilities 12,513 7,059
Total Current Liabilities 18,304 10,654
Deferred income taxes 6,454 19
Long-term debt 43,387 5,646
Other non-current liabilities 10,101 4,540
Total Liabilities 78,246 20,859
Commitments and contingencies
EQUITY
Bristol-Myers Squibb Company Shareholders’ Equity:
Preferred stock, $2 convertible series, par value $1 per share: Authorized 10 million shares; issued
and outstanding 3,568 in 2019 and 3,590 in 2018, liquidation value of $50 per share — —
Common stock, par value of $0.10 per share: Authorized 4.5 billion shares; 2.9 billion issued in
2019 and 2.2 billion issued in 2018 292 221
Capital in excess of par value of stock 43,709 2,081
Accumulated other comprehensive loss (1,520) (2,762)
Retained earnings 34,474 34,065
Less cost of treasury stock — 672 million common shares in 2019 and 576 million common
shares in 2018 (25,357) (19,574)
Total Bristol-Myers Squibb Company Shareholders' Equity 51,598 14,031
Noncontrolling interest 100 96
Total Equity 51,698 14,127
Total Liabilities and Equity $ 129,944 $ 34,986
29
CONSOLIDATED STATEMENTS OF CASH FLOWS
Dollars in Millions

2019 2018 2017
Cash Flows From Operating Activities:
Net earnings $ 3,460 $ 4,947 $ 975
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization, net 1,746 637 789
Deferred income taxes (924) 45 453
Stock-based compensation 441 221 199
Impairment charges 199 126 327
Pension settlements and amortization 1,688 186 236
Divestiture gains and royalties (1,855) (992) (706)
Asset acquisition charges 25 85 760
Equity investment (gains)/losses (279) 512 (23)
Contingent consideration fair value adjustments 523 — —
Other adjustments (22) (44) 120
Changes in operating assets and liabilities:
Receivables 752 (429) (431)
Inventories 463 (216) (29)
Accounts payable 229 (59) 320
Deferred income 12 84 (642)
Income taxes payable 907 203 3,154
Other 702 634 (227)
Net Cash Provided by Operating Activities 8,067 5,940 5,275
Cash Flows From Investing Activities:
Sale and maturities of marketable debt securities 3,809 2,379 6,398
Purchase of marketable debt securities (3,961) (2,305) (5,419)
Capital expenditures (836) (951) (1,055)
Divestiture and other proceeds 15,852 1,249 736
Acquisition and other payments, net of cash acquired (24,634) (1,246) (726)
Net Cash Used in Investing Activities (9,770) (874) (66)
Cash Flows From Financing Activities:
Short-term debt obligations, net 131 (543) 727
Issuance of long-term debt 26,778 — 1,488
Repayment of long-term debt (9,256) (5) (1,224)
Repurchase of common stock (7,300) (320) (2,469)
Dividends (2,679) (2,613) (2,577)
Other (53) (54) (22)
Net Cash Provided by/(Used in) Financing Activities 7,621 (3,535) (4,077)
Effect of Exchange Rates on Cash, Cash Equivalents and Restricted Cash (9) (41) 52
Increase in Cash, Cash Equivalents and Restricted Cash 5,909 1,490 1,184
Cash, Cash Equivalents and Restricted Cash at Beginning of Year 6,911 5,421 4,237
Cash, Cash Equivalents and Restricted Cash at End of Year $ 12,820 $ 6,911 $ 5,421
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2019 Annual Report
Note 1. ACCOUNTING POLICIES AND RECENTLY ISSUED ACCOUNTING STANDARDS
Basis of Consolidation
The consolidated financial statements are prepared in conformity with U.S. GAAP, including the accounts of Bristol-Myers Squibb
Company and all of its controlled majority-owned subsidiaries and certain variable interest entities. All intercompany balances and
transactions are eliminated. Material subsequent events are evaluated and disclosed through the report issuance date. Refer to the Summary
of Abbreviated Terms at the end of this 2019 Form 10-K for terms used throughout the document.
Alliance and license arrangements are assessed to determine whether the terms provide economic or other control over the entity requiring
consolidation of an entity. Entities controlled by means other than a majority voting interest are referred to as variable interest entities
and are consolidated when BMS has both the power to direct the activities of the variable interest entity that most significantly impacts
its economic performance and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the
entity.
Business Segment Information
BMS operates in a single segment engaged in the discovery, development, licensing, manufacturing, marketing, distribution and sale of
innovative medicines that help patients prevail over serious diseases. A global research and development organization and supply chain
organization are responsible for the discovery, development, manufacturing and supply of products. Regional commercial organizations
market, distribute and sell the products. The business is also supported by global corporate staff functions. Consistent with BMS's
operational structure, the Chief Executive Officer (“CEO”), as the chief operating decision maker, manages and allocates resources at
the global corporate level. Managing and allocating resources at the global corporate level enables the CEO to assess both the overall
level of resources available and how to best deploy these resources across functions, therapeutic areas, regional commercial organizations
and research and development projects in line with our overarching long-term corporate-wide strategic goals, rather than on a product
or franchise basis. The determination of a single segment is consistent with the financial information regularly reviewed by the CEO for
purposes of evaluating performance, allocating resources, setting incentive compensation targets, and planning and forecasting future
periods. For further information on product and regional revenue, see “—Note 2. Revenue”.
Use of Estimates and Judgments
The preparation of financial statements requires the use of management estimates, judgments and assumptions. The most significant
assumptions are estimates used in determining accounting for business combinations; impairments of goodwill and intangible assets;
sales rebate and return accruals; legal contingencies; and income taxes. Actual results may differ from estimates.
Reclassifications
Certain prior period amounts were reclassified to conform to the current period presentation including separate presentation of amortization
of acquired intangible assets and reclassification of other assets and liabilities which did not change the reported amount of total assets
or liabilities. These reclassifications did not have an impact on net assets, net earnings, or operating cash flows.
Cash, Cash Equivalents and Restricted Cash
Cash and cash equivalents include bank deposits, time deposits, commercial paper and money market funds. Cash equivalents consist of
highly liquid investments with original maturities of three months or less at the time of purchase and are recognized at cost, which
approximates fair value.
Cash is restricted when withdrawal or general use is contractually or legally restricted. Determination of current and non-current
classification is based on the expected duration of the restriction. Restricted cash consists of escrow for litigation settlements and funds
restricted for annual Company contributions to the defined contribution plan in the U.S. Restricted cash of $474 million was included in
cash, cash equivalents and restricted cash at December 31, 2019 in the consolidated statements of cash flows.
Marketable Debt Securities
Marketable debt securities are classified as “available-for-sale” on the date of purchase and reported at fair value. Fair value is determined
based on observable market quotes or valuation models using assessments of counterparty credit worthiness, credit default risk or
underlying security and overall capital market liquidity. Marketable debt securities are reviewed for impairment by assessing if the decline
in market value of the investment below the carrying value is other than temporary, which considers the intent and ability to retain the
investment for a period of time sufficient to allow for any anticipated recovery in market value, the duration and extent that the market
value has been less than cost and the investee's financial condition.
31
Investments in Equity Securities
Investments in equity securities with readily determinable fair values are recorded at fair value with changes in fair value recorded in
Other (income)/expense, net. Investments in equity securities without readily determinable fair values are recorded at cost minus any
impairment, plus or minus changes in their estimated fair value resulting from observable price changes in orderly transactions for the
identical or a similar investment of the same issuer. Changes in the estimated fair value of investments in equity securities without readily
determinable fair values are recorded in Other (income)/expense, net. Investments in 50% or less owned companies are accounted for
using the equity method of accounting when the ability to exercise significant influence over the operating and financial decisions of the
investee is maintained. The share of net income or losses of equity investments accounted for using the equity method are included in
Other (income)/expense, net. Investments in equity securities without readily determinable fair values and investments in equity accounted
for using the equity method are assessed for potential impairment on a quarterly basis based on qualitative factors.
Inventory Valuation
Inventories are stated at the lower of average cost or net realizable value.
Property, Plant and Equipment and Depreciation
Expenditures for additions, renewals and improvements are capitalized at cost. Depreciation is computed on a straight-line method based
on the estimated useful lives of the related assets ranging from 20 to 50 years for buildings and 3 to 20 years for machinery, equipment
and fixtures.
Current facts or circumstances are periodically evaluated to determine if the carrying value of depreciable assets to be held and used may
not be recoverable. If such circumstances exist, an estimate of undiscounted future cash flows generated by the long-lived asset, or
appropriate grouping of assets, is compared to the carrying value to determine whether an impairment exists at its lowest level of identifiable
cash flows. If an asset is determined to be impaired, the loss is measured based on the difference between the asset’s fair value and its
carrying value. An estimate of the asset’s fair value is based on quoted market prices in active markets, if available. If quoted market
prices are not available, the estimate of fair value is based on various valuation techniques using unobservable fair value inputs, such as
a discounted value of estimated future cash flows.
Capitalized Software
Eligible costs to obtain internal use software are capitalized and amortized over the estimated useful life of the software.
Acquisitions
Businesses acquired are consolidated upon obtaining control. The fair value of assets acquired and liabilities assumed are recognized at
the date of acquisition. Any excess of the purchase price over the estimated fair values of the net assets acquired is recognized as goodwill.
Business acquisition costs are expensed when incurred. Contingent consideration from potential development, regulatory, approval and
sales-based milestones and sales-based royalties are included in the purchase price for business combinations and are excluded for asset
acquisitions. Amounts allocated to the lead investigational compounds for asset acquisitions are expensed at the date of acquisition.
Goodwill, Acquired In-Process Research and Development and Other Intangible Assets
The fair value of acquired intangible assets is determined using an income-based approach referred to as the excess earnings method
utilizing Level 3 fair value inputs. Market participant valuations assume a global view considering all potential jurisdictions and indications
based on discounted after-tax cash flow projections, risk adjusted for estimated probability of technical and regulatory success.
Finite-lived intangible assets, including licenses, developed technology rights and IPRD projects that reach commercialization are
amortized on a straight-line basis over their estimated useful life. Estimated useful lives are determined considering the period assets are
expected to contribute to future cash flows. Finite-lived intangible assets are tested for impairment when facts or circumstances suggest
that the carrying value of the asset may not be recoverable. If the carrying value exceeds the projected undiscounted pretax cash flows
of the intangible asset, an impairment loss equal to the excess of the carrying value over the estimated fair value (discounted after-tax
cash flows) is recognized.
Goodwill is tested at least annually for impairment by assessing qualitative factors in determining whether it is more likely than not that
the fair value of net assets is below their carrying amounts. Examples of qualitative factors assessed include BMS's share price, financial
performance compared to budgets, long-term financial plans, macroeconomic, industry and market conditions as well as the substantial
excess of fair value over the carrying value of net assets from the annual impairment test performed in a prior year. Each relevant factor
is assessed both individually and in the aggregate.
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2019 Annual Report
IPRD is tested for impairment on an annual basis and more frequently if events occur or circumstances change that would indicate a
potential reduction in the fair values of the assets below their carrying value. Impairment charges are recognized to the extent the carrying
value of IPRD is determined to exceed its fair value.
Restructuring
Restructuring charges are recognized as a result of actions to streamline operations and reduce the number of facilities. Estimating the
impact of restructuring plans, including future termination benefits, integration expenses and other exit costs requires judgment. Actual
results could vary from these estimates. Restructuring charges are recognized upon meeting certain criteria, including finalization of
committed plans, reliable estimates and discussions with local works councils in certain markets.
Contingencies
Loss contingencies from legal proceedings and claims may occur from government investigations, shareholder lawsuits, product and
environmental liability, contractual claims, tax and other matters. Accruals are recognized when it is probable that a liability will be
incurred and the amount of loss can be reasonably estimated. Gain contingencies (including contingent proceeds related to the divestitures)
are not recognized until realized. Legal fees are expensed as incurred.
Revenue Recognition
Refer to “—Note 2. Revenue” for a detailed discussion of accounting policies related to revenue recognition, including deferred revenue
and royalties. Refer to “—Note 3. Alliances” for further detail regarding alliances.
Research and Development
Research and development costs are expensed as incurred. Clinical study costs are accrued over the service periods specified in the
contracts and adjusted as necessary based upon an ongoing review of the level of effort and costs actually incurred. Research and
development costs are presented net of reimbursements from alliance partners. Upfront and contingent development milestone payments
for asset acquisitions of investigational compounds are also included in research and development expense if there are no alternative
future uses.
Advertising and Product Promotion Costs
Advertising and product promotion costs are expensed as incurred. Advertising and product promotion costs are included in Marketing,
selling and administrative expenses and were $633 million in 2019, $672 million in 2018 and $740 million in 2017.
Foreign Currency Translation
Foreign subsidiary earnings are translated into U.S. dollars using average exchange rates. The net assets of foreign subsidiaries are
translated into U.S. dollars using current exchange rates. The U.S. dollar effects that arise from translating the net assets of these subsidiaries
at changing rates are recognized in Other Comprehensive Income/(Loss).
Income Taxes
The provision for income taxes includes income taxes paid or payable for the current year plus the change in deferred taxes during the
year. Deferred taxes result from differences between the financial and tax basis of assets and liabilities and are adjusted for changes in
tax rates and tax laws when changes are enacted. Valuation allowances are recognized to reduce deferred tax assets when it is more likely
than not that a tax benefit will not be realized. The assessment of whether or not a valuation allowance is required often requires significant
judgment including the long-range forecast of future taxable income and the evaluation of tax planning initiatives. Adjustments to the
deferred tax valuation allowances are made to earnings in the period when such assessments are made.
Tax benefits are recognized from an uncertain tax position only if it is more likely than not that the tax position will be sustained on
examination by the taxing authorities based on the technical merits of the position. The tax benefit recognized in the financial statements
for a particular tax position is based on the largest benefit that is more likely than not to be realized upon settlement.
33
Cash Flow
Payments for licensing and asset acquisitions of investigational compounds are included in operating activities as well as out-licensing
proceeds. Payments for the acquisition of an ownership interest in a legal entity, including acquisitions that do not meet the accounting
definition of a business are included in investing activities, as well as divestiture proceeds, royalties and other consideration received
subsequent to the related sale of the asset or business. Other adjustments reflected in operating activities include divestiture gains and
losses and related royalties, asset acquisition charges, gains and losses on equity investments and gains and losses on debt redemption.
Recently Adopted Accounting Standards
Leases
Amended guidance for lease accounting was adopted on January 1, 2019 using the modified retrospective method with the cumulative
effect of the change recognized in retained earnings in the period of adoption. The new guidance requires an entity to recognize a right-
of-use asset and a lease liability initially measured at the present value of future lease payments. The cumulative effect of the accounting
change was not material. BMS elected the package of practical expedients upon adoption, and will apply the practical expedient not to
separate lease and non-lease components for new and modified leases commencing after adoption. In addition, BMS applied the short-
term lease recognition exemption for leases with terms at inception not greater than 12 months. The amended guidance resulted in the
recognition of the operating lease right-of-use asset and lease liability and did not impact BMS’s results of operations. Refer to “—Note
13. Leases” for further information.
Goodwill Impairment Testing
Amended guidance that simplifies the recognition and measurement of a goodwill impairment loss by eliminating Step 2 of the quantitative
goodwill impairment test was adopted prospectively in the first quarter of 2019. Under the amended guidance, a goodwill impairment
loss is recognized for the amount by which the reporting units carrying amount, including goodwill, exceeds its fair value up to the amount
of its allocated goodwill. The adoption of the amended guidance did not have an impact on BMS’s results of operations.
Recently Issued Accounting Standards Not Yet Adopted
Financial Instruments - Measurement of Credit Losses
In June 2016, the FASB issued amended guidance for the measurement of credit losses on financial instruments. Entities will be required
to use a forward-looking estimated loss model. Available-for-sale debt security credit losses will be recognized as allowances rather than
a reduction in amortized cost. The guidance is effective January 1, 2020 on a modified retrospective approach. The amended guidance
will not have a material impact to BMS’s results of operations.
Note 2. REVENUE
The following table summarizes the disaggregation of revenue by nature:

Dollars in Millions 2019 2018 2017
Alliance revenues 597 647 962
Other revenues 374 333 556
Total Revenues $ 26,145 $ 22,561 $ 20,776
Net product sales represent more than 90% of BMS’s total revenues for the years ended December 31, 2019, 2018 and 2017. Products
are sold principally to wholesalers or distributors and to a lesser extent, directly to retailers, hospitals, clinics, government agencies and
pharmacies. Customer orders are generally fulfilled within a few days of receipt resulting in minimal order backlog. Contractual
performance obligations are usually limited to transfer of control of the product to the customer. The transfer occurs either upon shipment
or upon receipt of the product after considering when the customer obtains legal title to the product and when BMS obtains a right of
payment. At these points, customers are able to direct the use of and obtain substantially all of the remaining benefits of the product.
34
2019 Annual Report
Gross revenue to the three largest pharmaceutical wholesalers in the U.S. as a percentage of global gross revenues was as follows:
2019 2018 2017
McKesson Corporation 26% 25% 24%
AmerisourceBergen Corporation 20% 20% 18%
Cardinal Health, Inc. 17% 17% 15%
Wholesalers are initially invoiced at contractual list prices. Payment terms are typically 30 to 90 days based on customary practices in
each country. Revenue is reduced from wholesaler list price at the time of recognition for expected charge-backs, discounts, rebates, sales
allowances and product returns, which are referred to as GTN adjustments. These reductions are attributed to various commercial
arrangements, managed healthcare organizations and government programs such as Medicare, Medicaid and the 340B Drug Pricing
Program containing various pricing implications such as mandatory discounts, pricing protection below wholesaler list price or other
discounts when Medicare Part D beneficiaries are in the coverage gap. In addition, non-U.S. government programs include different
pricing schemes such as cost caps, volume discounts, outcome-based pricing and pricing claw-backs determined on sales of individual
companies or an aggregation of companies participating in a specific market. Charge-backs and cash discounts are reflected as a reduction
to receivables and settled through the issuance of credits to the customer, typically within one month. All other rebates, discounts and
adjustments, including Medicaid and Medicare, are reflected as a liability and settled through cash payments to the customer, typically
within various time periods ranging from a few months to one year.
Significant judgment is required in estimating GTN adjustments considering legal interpretations of applicable laws and regulations,
historical experience, payer channel mix, current contract prices under applicable programs, unbilled claims, processing time lags and
inventory levels in the distribution channel.
The following table summarizes GTN adjustments:

Gross product sales $ 37,206 $ 30,174 $ 25,499
GTN adjustments(a)
Charge-backs and cash discounts (3,675) (2,735) (2,084)
Medicaid and Medicare rebates (4,941) (3,225) (2,086)
Other rebates, returns, discounts and adjustments (3,416) (2,633) (2,071)
Total GTN adjustments (12,032) (8,593) (6,241)
(a) Includes adjustments for provisions for product sales made in prior periods resulting from changes in estimates of $132 million, $96 million and $71 million for the
years ended December 31, 2019, 2018 and 2017, respectively.
Alliance and other revenues consist primarily of amounts related to collaborations and out-licensing arrangements. Each of these
arrangements are evaluated for whether they represent contracts that are within the scope of the revenue recognition guidance in their
entirety or contain aspects that are within the scope of the guidance, either directly or by reference based upon the application of the
guidance related to the derecognition of nonfinancial assets (ASC 610).
Performance obligations are identified and separated when the other party can benefit directly from the rights, goods or services either
on their own or together with other readily available resources and when the rights, goods or services are not highly interdependent or
interrelated.
Transaction prices for these arrangements may include fixed up-front amounts as well as variable consideration such as contingent
development and regulatory milestones, sales-based milestones and royalties. The most likely amount method is used to estimate contingent
development, regulatory and sales-based milestones because the ultimate outcomes are binary in nature. The expected value method is
used to estimate royalties because a broad range of potential outcomes exist, except for instances in which such royalties relate to a
license. Variable consideration is included in the transaction price only to the extent a significant reversal in the amount of cumulative
revenue recognized is not probable of occurring when the uncertainty associated with the variable consideration is subsequently resolved.
Significant judgment is required in estimating the amount of variable consideration to recognize when assessing factors outside of BMS’s
influence such as likelihood of regulatory success, limited availability of third party information, expected duration of time until resolution,
lack of relevant past experience, historical practice of offering fee concessions and a large number and broad range of possible amounts.
To the extent arrangements include multiple performance obligations that are separable, the transaction price assigned to each distinct
performance obligation is reflective of the relative stand-alone selling price and recognized at a point in time upon the transfer of control.
35
Three types of out-licensing arrangements are typically utilized: (1) arrangements when BMS out-licenses intellectual property to another
party and has no further performance obligations; (2) arrangements that include a license and an additional performance obligation to
supply product upon the request of the third party; and (3) collaboration arrangements, which include transferring a license to a third
party to jointly develop and commercialize a product.
Most out-licensing arrangements consist of a single performance obligation that is satisfied upon execution of the agreement when the
development and commercialization rights are transferred to a third party. Up-front fees are recognized immediately and included in
Other (income)/expense, net. Although contingent development and regulatory milestone amounts are assessed each period for the
likelihood of achievement, they are typically constrained and recognized when the uncertainty is subsequently resolved for the full amount
of the milestone and included in Other (income)/expense, net. Sales-based milestones and royalties are recognized when the milestone
is achieved or the subsequent sales occur. Sales-based milestones are included in Other (income)/expense, net and royalties are included
in Alliance and other revenue.
Certain out-licensing arrangements may also include contingent performance obligations to supply commercial product to the third party
upon its request. The license and supply obligations are accounted for as separate performance obligations as they are considered distinct
because the third party can benefit from the license either on its own or together with other supply resources readily available to it and
the obligations are separately identifiable from other obligations in the contract in accordance with the revenue recognition guidance.
After considering the standalone selling prices in these situations, up-front fees, contingent development and regulatory milestone amounts
and sales-based milestone and royalties are allocated to the license and recognized in the manner described above. Consideration for the
supply obligation is usually based upon stipulated cost-plus margin contractual terms which represent a standalone selling price. The
supply consideration is recognized at a point in time upon transfer of control of the product to the third party and included in Alliance
and other revenue. The above fee allocation between the license and the supply represents the amount of consideration that BMS expects
to be entitled to for the satisfaction of the separate performance obligations.
Although collaboration arrangements are unique in nature, both parties are active participants in the operating activities and are exposed
to significant risks and rewards depending on the commercial success of the activities. Performance obligations inherent in these
arrangements may include the transfer of certain development or commercialization rights, ongoing development and commercialization
services and product supply obligations. Except for certain product supply obligations which are considered distinct and accounted for
as separate performance obligations similar to the manner discussed above, all other performance obligations are not considered distinct
and are combined into a single performance obligation since the transferred rights are highly integrated and interrelated to BMS's obligation
to jointly develop and commercialize the product with the third party. As a result, up-front fees are recognized ratably over time throughout
the expected period of the collaboration activities and included in Other (income)/expense, net as the license is combined with other
development and commercialization obligations. Contingent development and regulatory milestones that are no longer constrained are
recognized in a similar manner on a prospective basis. Royalties and profit sharing are recognized when the underlying sales and profits
occur and are included in Alliance and other revenue. Refer to “—Note 3. Alliances” for further information.
36
2019 Annual Report
The following table summarizes the disaggregation of revenue by product and region:

Prioritized Brands
Revlimid $ 1,299 $ — $ —
Eliquis 7,929 6,438 4,872
Opdivo 7,204 6,735 4,948
Orencia 2,977 2,710 2,479
Pomalyst/Imnovid 322 — —
Sprycel 2,110 2,000 2,005
Yervoy 1,489 1,330 1,244
Abraxane 166 — —
Empliciti 357 247 231
Inrebic 5 — —
Established Brands
Baraclude 555 744 1,052
Vidaza 58 — —
Other Brands(a) 1,674 2,357 3,945
Total Revenues $ 26,145 $ 22,561 $ 20,776
United States $ 15,342 $ 12,586 $ 11,358

Europe 6,266 5,658 4,988
Rest of World 4,013 3,733 3,877
Other(b) 524 584 553
Total Revenues $ 26,145 $ 22,561 $ 20,776
(a) Includes BMS and Celgene products in 2019.
(b) Other revenues include royalties and alliance-related revenues for products not sold by BMS's regional commercial organizations.
Contract assets are primarily estimated future royalties and termination fees not eligible for the licensing exclusion and therefore recognized
upon the adoption of ASC 606 and ASC 610. Contract assets are reduced and receivables are increased in the period the underlying sales
occur. Cumulative catch-up adjustments to revenue affecting contract assets or contract liabilities were not material during the year ended
December 31, 2019 and 2018. Revenue recognized from performance obligations satisfied in prior periods was $411 million and $495
million for the years ended December 31, 2019 and 2018, respectively, consisting primarily of royalties for out-licensing arrangements
and revised estimates for GTN adjustments related to prior period sales. Contract assets were not material at December 31, 2019 and
2018.
Sales commissions and other incremental costs of obtaining customer contracts are expensed as incurred as the amortization periods
would be less than one year.
Note 3. ALLIANCES
BMS enters into collaboration arrangements with third parties for the development and commercialization of certain products. Although
each of these arrangements is unique in nature, both parties are active participants in the operating activities of the collaboration and
exposed to significant risks and rewards depending on the commercial success of the activities. BMS may either in-license intellectual
property owned by the other party or out-license its intellectual property to the other party. These arrangements also typically include
research, development, manufacturing, and/or commercial activities and can cover a single investigational compound or commercial
product or multiple compounds and/or products in various life cycle stages. The rights and obligations of the parties can be global or
limited to geographic regions. BMS refer to these collaborations as alliances and its partners as alliance partners.
The most common activities between BMS and its alliance partners are presented in results of operations as follows:
• When BMS is the principal in the end customer sale, 100% of product sales are included in Net product sales. When BMS's
alliance partner is the principal in the end customer sale, BMS's contractual share of the third-party sales and/or royalty income
are included in Alliance revenues as the sale of commercial products are considered part of BMS's ongoing major or central
operations. Refer to “—Note 2. Revenue” for information regarding recognition criteria.
37
• Amounts payable to BMS by alliance partners (who are the principal in the end customer sale) for supply of commercial products
are included in Alliance revenues as the sale of commercial products are considered part of BMS's ongoing major or central
operations.
• Profit sharing, royalties and other sales-based fees payable by BMS to alliance partners are included in Cost of products sold
as incurred.
• Cost reimbursements between the parties are recognized as incurred and included in Cost of products sold; Marketing, selling
and administrative expenses; or Research and development expenses, based on the underlying nature of the related activities
subject to reimbursement.
• Upfront and contingent development and approval milestones payable to BMS by alliance partners for investigational compounds
and commercial products are deferred and amortized over the expected period of BMS's development and co-promotion obligation
through the market exclusivity period or the periods in which the related compounds or products are expected to contribute to
future cash flows. The amortization is presented consistent with the nature of the payment under the arrangement. For example,
amounts received for investigational compounds are presented in Other (income)/expense, net as the activities being performed
at that time are not related to the sale of commercial products included in BMS’s ongoing major or central operations; amounts
received for commercial products are presented in alliance revenue as the sale of commercial products are considered part of
BMS’s ongoing major or central operations.
• Upfront and contingent approval milestones payable by BMS to alliance partners for commercial products are capitalized and
amortized over the shorter of the contractual term or the periods in which the related products are expected to contribute to future
cash flows.
• Upfront and contingent milestones payable by BMS to alliance partners prior to regulatory approval are expensed as incurred
and included in Research and development expense.
• Royalties and other contingent consideration payable to BMS by alliance partners related to the divestiture of such businesses
are included in Other (income)/expense, net when earned.
• All payments between BMS and its alliance partners are presented in Cash Flows From Operating Activities.
Selected financial information pertaining to alliances was as follows, including net product sales when BMS is the principal in the third-
party customer sale for products subject to the alliance. Expenses summarized below do not include all amounts attributed to the activities
for the products in the alliance, but only the payments between the alliance partners or the related amortization if the payments were
deferred or capitalized.
Revenues from alliances:
Total Revenues $ 10,541 $ 9,006 $ 7,879
Payments to/(from) alliance partners:

Cost of products sold $ 4,169 $ 3,439 $ 2,718
Marketing, selling and administrative (127) (104) (62)
Research and development 42 1,044 (28)
Other (income)/expense, net (60) (67) (46)
Selected Alliance Balance Sheet Information: December 31,

Receivables – from alliance partners $ 347 $ 395
Accounts payable – to alliance partners 1,026 904
Deferred income from alliances(a) 431 491
(a) Includes unamortized upfront and milestone payments.
Specific information pertaining to significant alliances is discussed below, including their nature and purpose; the significant rights and
obligations of the parties; specific accounting policy elections; and the statements of earnings classification of and amounts attributable
to payments between the parties.
38
2019 Annual Report
Pfizer
BMS and Pfizer jointly develop and commercialize Eliquis, an anticoagulant discovered by BMS. Pfizer funds between 50% and 60%
of all development costs depending on the study. Profits and losses are shared equally on a global basis except in certain countries where
Pfizer commercializes Eliquis and pays BMS a sales-based fee.
Co-exclusive license rights were granted to Pfizer in exchange for an upfront payment and potential milestone payments. Both parties
assumed certain obligations to actively participate in a joint executive committee and various other operating committees and have joint
responsibilities for the research, development, distribution, sales and marketing activities of the alliance using resources in their own
infrastructures. BMS and Pfizer manufacture the product in the alliance and BMS is the principal in the end customer product sales in
the U.S., significant countries in Europe, as well as Canada, Australia, China, Japan and South Korea. In 2015, BMS transferred full
commercialization rights to Pfizer in certain smaller countries in order to simplify operations. In the transferred countries, BMS supplies
the product to Pfizer at cost plus a percentage of the net sales price to end-customers which is recorded in full upon transfer of control
of the product to Pfizer.
BMS did not allocate consideration to the rights transferred to Pfizer as such rights were not sold separately by BMS or any other party,
nor could Pfizer receive any benefit for the delivered rights without the fulfillment of other ongoing obligations by BMS under the alliance
agreement. As such, the global alliance was treated as a single unit of accounting and upfront proceeds and any subsequent contingent
milestone proceeds are amortized over the expected period of BMS's co-promotion obligation through the market exclusivity period.
BMS received $884 million in non-refundable upfront, milestone and other licensing payments related to Eliquis through December 31,
2019. Amortization of the Eliquis deferred income is included in Other (income)/expense, net as Eliquis was not a commercial product
at the commencement of the alliance.
Summarized financial information related to this alliance was as follows:

Revenues from Pfizer alliance:
Total Revenues $ 7,929 $ 6,438 $ 4,872
Payments to/(from) Pfizer:

Cost of products sold – Profit sharing $ 3,745 $ 3,078 $ 2,314
Other (income)/expense, net – Amortization of deferred income (55) (55) (55)
Selected Alliance Balance Sheet Information: December 31,

Receivables $ 247 $ 220
Accounts payable 922 786
Deferred income 355 410
Otsuka
BMS and Otsuka co-promoted Sprycel in the U.S. and the EU through 2019. BMS is responsible for the development and manufacture
of the product and is also the principal in the end customer product sales. A fee is paid to Otsuka through 2020 based on net sales levels
in the Oncology Territory (U.S., Japan and the EU) that equates to $294 million on the first $1 billion of annual net sales plus 1% of net
sales in excess of $1 billion.

Revenues from Otsuka alliances:
Net product sales – Oncology territory $ 1,794 $ 1,705 $ 1,699
Payments to Otsuka:
Cost of products sold – Oncology fee 302 297 299
39
Ono
BMS and Ono jointly develop and commercialize Opdivo, Yervoy and several BMS investigational compounds in Japan, South Korea
and Taiwan. BMS is responsible for supply of the products. Profits, losses and development costs are shared equally for all combination
therapies involving compounds of both parties. Otherwise, sharing is 80% and 20% for activities involving only one of the party’s
compounds.
BMS and Ono also jointly develop and commercialize Orencia in Japan. BMS is responsible for the order fulfillment and distribution of
the intravenous formulation and Ono is responsible for the subcutaneous formulation. Both formulations are jointly promoted by both
parties with assigned customer accounts and BMS is responsible for the product supply. A co-promotion fee of 60% is paid when a sale
is made to the other party’s assigned customer.
In 2017, Ono granted BMS an exclusive license for the development and commercialization of ONO-4578, Ono’s Prostaglandin E2
receptor 4 antagonist. BMS acquired worldwide rights except in Japan, South Korea, and Taiwan where it was added to the existing
collaboration and in China and ASEAN countries where Ono retained exclusive rights. BMS paid $40 million to Ono, which was included
in Research and development expense in 2017. Ono is eligible to receive subsequent clinical, regulatory and sales-based milestone
payments of up to $480 million and royalties in countries where BMS has exclusive licensing rights.
In 2018, BMS provided Ono with a right to accept NKTR-214 into their alliance upon completion of a Phase I clinical study of Opdivo
and NKTR-214 in the Ono Territory. If the right is exercised, Ono will partially reimburse BMS for development costs incurred with the
study and share in certain future development costs, contingent milestone payments, profits and losses under the collaboration with Nektar.
Ono exercised the right to accept NKTR-214 into its alliance with BMS in 2019.

Revenues from Ono alliances:
Net product sales $ 194 $ 165 $ 145
Total Revenues $ 499 $ 459 $ 413
BMS is the principal in the end customer product sales and has the exclusive right to develop, manufacture and commercialize Opdivo
worldwide except in Japan, South Korea and Taiwan. Ono is entitled to receive royalties of 4% in North America and 15% in all territories
excluding the three countries listed above, subject to customary adjustments.
Nektar
In 2018, BMS and Nektar commenced a worldwide license and collaboration for the development and commercialization of
Bempegaldesleukin (NKTR-214), Nektar's investigational immuno-stimulatory therapy designed to selectively expand specific cancer-
fighting T cells and natural killer cells directly in the tumor micro-environment. In January 2020, the parties amended the collaboration
agreement. The Opdivo and NKTR-214 combination therapy is currently in Phase III clinical studies for melanoma, muscle-invasive
bladder cancer and RCC. A joint development plan agreed by the parties as part of the original agreement, and updated as part of the
January 2020 amendment, specifies development in certain indications and tumor types with each party responsible for the supply of
their own product. BMS's share of the development costs associated with therapies comprising a BMS medicine used in combination
with NKTR-214 is 67.5%, subject to certain cost caps for Nektar. The January 2020 amendment retains the cost sharing percentages from
the original agreement. The parties will also jointly commercialize the therapies, subject to regulatory approval. BMS's share of global
NKTR-214 profits and losses will be 35% subject to certain annual loss caps for Nektar.
BMS paid Nektar $1.85 billion for the rights discussed above and 8.3 million shares of Nektar common stock representing a 4.8%
ownership interest. BMS's equity ownership is subject to certain lock-up, standstill and voting provisions for a five-year period. The
amount of the up-front payment allocated to the equity investment was $800 million after considering Nektar's stock price on the date
of closing and current limitations on trading the securities. The remaining $1.05 billion of the up-front payment was allocated to the rights
discussed above and included in Research and development expense in the second quarter of 2018. BMS will also pay up to $1.8 billion
upon the achievement of contingent development, regulatory and sales-based milestones over the life of the alliance period. Research
and development expense payable under this agreement with Nektar was $108 million and $59 million for the years ended December 31,
2019 and 2018, respectively.
40
2019 Annual Report
Note 4. ACQUISITIONS, DIVESTITURES, LICENSING AND OTHER ARRANGEMENTS
Acquisitions
Business Combination
Celgene
On November 20, 2019, BMS completed the Celgene acquisition. The acquisition is expected to create a leading biopharmaceutical
company, well positioned for sustained innovation and long-term growth and to address the needs of patients with cancer, inflammatory,
immunologic or cardiovascular diseases through high-value innovative medicines and leading scientific capabilities. Each share of Celgene
common stock was converted into a right to receive one share of BMS common stock and $50.00 in cash. Celgene shareholders also
received one tradeable contingent value right (“CVR”) for each share of Celgene common stock representing the right to receive $9.00
in cash, subject to the achievement of future regulatory milestones.
The aggregate cash paid in connection with the Celgene acquisition was $35.7 billion (or $24.6 billion net of cash acquired). BMS funded
the acquisition through cash on-hand and debt proceeds, as described in “—Note 9. Financial Instruments and Fair Value Measurements.”
The transaction was accounted for as a business combination which requires that assets acquired and liabilities assumed be recognized
at their fair value as of the acquisition date. The purchase price allocation is preliminary and subject to change, including the valuation
of inventory, property, plant and equipment and intangible assets and income taxes and legal contingencies among other items. The
amounts recognized will be finalized as the information necessary to complete the analysis is obtained, but no later than one year after
the acquisition date.
The total consideration for the acquisition consisted of the following:

Total
Amounts in Millions, Except Per Share Data Consideration
Celgene shares outstanding at November 19, 2019 714.9
Cash per share $ 50
Cash consideration for outstanding shares 35,745

Closing price of BMS common stock on November 19, 2019 $ 56.48
Estimated fair value of share consideration 40,378

Closing price of CVR(a) $ 2.30
Fair value of CVRs 1,644
Fair value of replacement options 1,428

Fair value of replacement restricted share awards 987
Fair value of CVRs issued to option and share award holders 87
Fair value of share-based compensation awards attributable to pre-combination service(b) 2,502
Total consideration transferred $ 80,269

(a) The closing price of CVR is based on the first trade on November 21, 2019.
(b) Fair value of the awards attributed to post-combination services of $1.0 billion will be included in compensation costs. Refer to “—Note 18. Employee Stock Benefit
Plans” for more information.
41
The preliminary purchase price allocation resulted in the following amounts being allocated to the assets acquired and liabilities assumed
at the Acquisition Date based upon their respective preliminary fair values summarized below:
Preliminary
Purchase Price
Dollars in Millions Allocation
Cash and cash equivalents $ 11,179
Receivables 2,652
Inventories 4,511
Property, plant and equipment 1,342
Intangible assets(a) 64,027
Otezla* assets held-for-sale(b) 13,400
Other assets 3,408
Accounts payable (363)
Income taxes payable (2,718)
Deferred income tax liabilities (7,339)
Debt (21,782)
Other liabilities (4,017)
Identifiable net assets acquired 64,300
Goodwill(c) 15,969
Total consideration transferred $ 80,269
(a) Intangible assets consists of currently marketed product rights of approximately $44.5 billion (amortized over 5.1 years calculated using the weighted-average useful
life of the assets) and IPRD of approximately $19.5 billion (not amortized), and were valued using the multi-period excess earnings method. This method starts with
a forecast of all of the expected future net cash flows associated with the asset and then involves adjusting the forecast to present value by applying an appropriate
discount rate that reflects the risk factors associated with the cash flow streams.
(b) Amount includes $381 million of inventory, $13.0 billion of developed product rights, $19 million of accrued liabilities and $5 million of other non-current liabilities.
Refer to “—Divestitures” for more information.
(c) Goodwill represents the going-concern value associated with future product discovery beyond the existing pipeline and expected value of synergies resulting from
cost savings and avoidance not attributed to identifiable assets. Goodwill is not deductible for tax purposes.
BMS's Consolidated Statement of Earnings for the year ended December 31, 2019, include $1.9 billion of Revenues and $1.6 billion of
Net Loss associated with the result of operations of Celgene from the acquisition date to December 31, 2019.
Acquisition expenses were $657 million during the year ended December 31, 2019, including financial advisory, legal, proxy filing,
regulatory, financing fees and hedge costs.
The following unaudited pro forma information has been prepared as if the Celgene acquisition and the Otezla* divestiture had occurred
on January 1, 2018. The unaudited supplemental pro forma consolidated results do not purport to reflect what the combined Company's
results of operations would have been nor do they project the future results of operations of the combined Company. The unaudited
supplemental pro forma consolidated results reflect the historical financial information of BMS and Celgene, adjusted to give effect to
the Celgene acquisition and the Otezla* divestitures as if it had occurred on January 1, 2018, primarily for the following adjustments:
• Amortization expenses primarily related to fair value adjustments to Celgene's intangible assets, inventories and debt.
• Non-recurring acquisition-related costs directly attributable to the Celgene acquisition and tax expense directly attributable to
the Otezla* divestiture.
• Interest expense, including amortization of deferred financing fees, attributable to the Celgene acquisition financing.
• Elimination of historical revenue and expenses related to Otezla*. Refer to “—Divestitures.”
The above adjustments were adjusted for the applicable tax impact using an estimated weighted-average statutory tax rate applied to the
applicable pro forma adjustments.
Amounts in Million 2019 2018
Total Revenues $ 39,759 $ 36,243
Net Earnings/(Loss) 3,369 (4,083)
42
2019 Annual Report
Asset Acquisitions
Certain transactions are accounted for as asset acquisitions since they were determined not to be a business as that term is defined in ASC
805 primarily because no significant processes were acquired. As a result, the amounts allocated to the lead investigational compounds
are expensed and not capitalized.
In 2017, BMS acquired all of the outstanding shares of IFM Therapeutics, Inc. (“IFM”), a private biotechnology company focused on
developing therapies that modulate novel targets in the innate immune system to treat cancer, autoimmunity and inflammatory diseases.
The acquisition provided BMS with full rights to IFM's preclinical STING and NLRP3 agonist programs focused on enhancing the innate
immune response for treating cancer. The transaction price included an upfront payment of $325 million and contingent consideration
of $2.0 billion. The up-front payment was included in Research and development expense except for $14 million that was allocated to
net operating loss and tax credit carryforwards. Contingent consideration includes development, regulatory and sales-based milestone
payments, of which $25 million was included in Research and development expense in both 2019 and 2018, following the commencement
of two Phase I clinical studies. BMS may pay up to $555 million in additional contingent milestones for any subsequent products selected
from IFM's preclinical STING and NLRP3 agonist programs.
Research and development expense also includes $60 million in 2018 and $450 million in 2017 resulting from the occurrence of certain
development and regulatory events attributed to asset acquisition completed prior to 2017, including Flexus Biosciences, Inc., Cardioxyl
Pharmaceuticals, Inc. and Cormorant Pharmaceuticals.
Divestitures
The following table summarizes the financial impact of divestitures including royalties, which are included in Other (income)/expense,
net. Revenue and pretax earnings related to all divestitures and assets held-for-sale were not material in all periods presented (excluding
divestiture gains or losses).
(a)
Proceeds Divestiture Gains Royalty Income
Dollars in Millions 2019 2018 2017 2019 2018 2017 2019 2018 2017
Otezla* $ 13,400 $ — $ — $ — $ — $ — $ — $ — $ —
UPSA Business 1,508 — — (1,157) — — — — —
Diabetes Business 661 579 405 — — (126) (650) (661) (329)
Erbitux* Business 15 216 218 — — — (23) (145) (224)
Manufacturing Operations 48 160 — 1 — — — — —
Plavix* and Avapro*/Avalide* — 80 — — — — — — —
Investigational HIV Business — — — — — (11) — — —
Mature Brands and Other 10 212 28 (12) (178) (24) (13) (8) (4)
Total $ 15,642 $ 1,247 $ 651 $ (1,168) $ (178) $ (161) $ (686) $ (814) $ (557)
(a) Includes royalties received subsequent to the related sale of the asset or business.
Otezla*
In order to complete the Celgene acquisition, BMS was required by the FTC to divest certain products. To allow the acquisition to close
on a timely basis in light of concerns expressed by the FTC, Celgene entered into a purchase agreement with Amgen on August 25, 2019
under which Amgen would acquire the global rights to Otezla* (apremilast) for $13.4 billion of cash. On November 21, 2019, BMS
completed the divestiture of Otezla* to Amgen. The transaction was accounted for as an asset divestiture. Otezla* was acquired as part
of the Celgene acquisition and was classified as held-for-sale at the time of the acquisition. The estimated fair value of Otezla* net assets
consisted of $13.0 billion of developed product rights and $381 million of inventory.
UPSA Business
In 2019, BMS sold its UPSA consumer health business, including the shares of UPSA SAS and BMS's assets and liabilities relating to
the UPSA product portfolio, to Taisho Pharmaceutical Co., Ltd. The transaction was accounted for as the sale of a business. The UPSA
business was treated as a single disposal group held-for-sale as of December 31, 2018.
43
Diabetes Business
In February 2014, BMS and AstraZeneca terminated their diabetes business alliance agreements and BMS sold to AstraZeneca substantially
all of the diabetes business comprising the alliance. Consideration for the transaction included tiered royalty payments ranging from 10%
to 25% based on net sales through 2025. Royalties were $533 million in 2019, $457 million in 2018 and $229 million in 2017. Contingent
consideration of $100 million was received in 2017 resulting in an additional gain upon achievement of a regulatory approval milestone.
In September 2015, BMS transferred a percentage of its future royalty rights on Amylin net product sales in the U.S. to CPPIB. The
transferred rights represent approximately 70% of potential future royalties BMS is entitled to in 2019 to 2025. In exchange for the
transfer, BMS received an additional tiered-based royalty on Amylin net product sales in the U.S. from CPPIB in 2016 through 2018
including $45 million in 2018 and $100 million in 2017, and paid $48 million in 2019.
In November 2017, BMS transferred a percentage of its future royalty rights on a portion of Onglyza* and Farxiga* net product sales to
Royalty Pharma. The transferred rights represent approximately 20% to 25% of potential future royalties BMS is entitled to for those
products in 2020 to 2025. In exchange for the transfer, BMS received an additional tiered-based royalty on Onglyza* and Farxiga* net
product sales from Royalty Pharma including $165 million in 2019 and $159 million in 2018.
Erbitux* Business
BMS had a commercialization agreement with Lilly through Lilly’s subsidiary ImClone for the co-development and promotion of Erbitux*
in the U.S., Canada and Japan. BMS was the principal in the end customer product sales in North America and paid Lilly a distribution
fee for 39% of Erbitux* net sales in North America plus a share of certain royalties paid by Lilly.
In October 2015, BMS transferred its rights to Erbitux* in North America to Lilly in exchange for tiered sales-based royalties through
September 2018, including $145 million in 2018 and $207 million in 2017.
BMS transferred its co-commercialization rights in Japan to Merck KGaA in 2015 in exchange for sales-based royalties through 2032.
Royalties earned were $17 million in 2017. As a result of the adoption of ASC 610 in the first quarter of 2018, estimated future royalties
resulting from the transfer of rights to Merck KGaA were recorded as a cumulative effect adjustment in Retained earnings. A $23 million
change in estimated future royalties was included in 2019.
Manufacturing Operations
In 2019, BMS sold its manufacturing and packaging facility in Anagni, Italy to Catalent Inc. The transaction was accounted for as the
sale of a business. The divestiture includes the transfer of the facility, the majority of employees at the site, inventories and certain third-
party contract manufacturing obligations. The assets were reduced to their relative fair value after considering the purchase price resulting
in an impairment charge of $121 million that was included in Cost of products sold. Catalent Inc. will provide certain manufacturing and
packaging services for BMS for a period of time.
In 2017, BMS sold its small molecule active pharmaceutical ingredient manufacturing operations in Swords, Ireland to SK Biotek Co.,
Ltd. Proceeds were received in the first quarter of 2018. The transaction was accounted for as the sale of a business. The divestiture
includes the transfer of the facility, the majority of employees at the site, inventories and certain third-party contract manufacturing
obligations. The assets were reduced to their relative fair value after considering the purchase price resulting in an impairment charge of
$146 million that was included in Cost of products sold. SK Biotek Co., Ltd. will provide certain manufacturing services for BMS for a
period of time.
Plavix* and Avapro*/Avalide*
Sanofi reacquired BMS's co-development and co-commercialization agreements for Plavix* and Avapro*/Avalide* in 2013. Consideration
for the transfer of rights included quarterly royalties through December 31, 2018 and a $200 million terminal payment received in 2018
of which $120 million was allocated to opt-out markets and $80 million was allocated to BMS's 49.9% interest in the Europe and Asia
territory partnership. Royalties expected to be received in 2018 and the portion of terminal payment allocated to opt-out markets was
reflected as a contract asset and cumulative effect adjustment upon adoption of ASC 610 in 2018 as BMS had fulfilled its performance
obligation. The $80 million allocated to BMS's partnership interest was deferred as of December 31, 2018 and recognized when transferred
to Sanofi in 2019.
Royalties earned from Sanofi in the territory covering the Americas and Australia and opt-out markets were presented in Alliance revenues
and aggregated $26 million in 2018 and $200 million in 2017. Royalties attributed to the territory covering Europe and Asia earned by
the territory partnership and paid to BMS were included in equity in net loss/(income) of affiliates and amounted to $96 million in 2018
and $95 million in 2017.
44
2019 Annual Report
Investigational HIV Business
In 2016, BMS sold its investigational HIV medicines business consisting of a number of R&D programs at different stages of discovery
and development to ViiV Healthcare. BMS received $350 million and is also entitled to receive from ViiV Healthcare contingent
development and regulatory milestone payments of up to $1.1 billion, sales-based milestone payments of up to $4.3 billion and future
tiered royalties. BMS earned transitional fees of $10 million for certain R&D and other services in 2017.
Mature Brands and Other

Divestitures include several brands sold to Cheplapharm resulting in proceeds of $153 million and divestiture gains of $127 million in
2018.
Assets Held-For-Sale
The following table summarizes the UPSA consumer health business net assets held-for-sale as of December 31, 2018:
December 31,
Dollars in Millions 2018
Receivables $ 79
Inventories 81
Property, plant and equipment 187
Goodwill 127
Other 5
Assets held-for-sale 479
Accounts payable 35
Other current liabilities 78
Deferred income taxes 25
Other liabilities 14
Liabilities related to assets held-for-sale 152
Net assets held-for-sale $ 327
Licensing and Other Arrangements
Halozyme
In 2017, BMS and Halozyme entered into a global collaboration and license agreement to develop subcutaneously administered BMS
IO medicines using Halozyme's ENHANZE* drug-delivery technology. This technology may allow for more rapid delivery of large
volume injectable medications through subcutaneous delivery. BMS paid $105 million to Halozyme for access to the technology which
was included in Research and development expense. BMS designated multiple IO targets, including PD-1, to develop using the ENHANZE*
technology and has an option to select additional targets within five years from the effective date up to a maximum of 11 targets. BMS
may pay contingent development, regulatory and sales-based milestones up to $160 million if achieved for each of the nominated
collaboration targets, additional milestone payments for combination products and future royalties on sales of products using the
ENHANZE* technology.
CytomX
In 2017, BMS expanded its strategic collaboration with CytomX to discover novel therapies using CytomX’s proprietary Probody platform.
As part of the original May 2014 collaboration to discover, develop and commercialize Probody therapeutics, BMS selected four oncology
targets, including CTLA-4. Pursuant to the expanded agreement, CytomX granted BMS exclusive worldwide rights to develop and
commercialize Probody therapeutics for up to eight additional targets. BMS paid CytomX $75 million for the rights to the initial four
targets which was expensed as R&D prior to 2017. BMS paid $200 million to CytomX for access to the additional targets which was
included in Research and development expense in 2017. BMS will also reimburse CytomX for certain research costs over the collaboration
period, pay contingent development, regulatory and sales-based milestones up to $448 million if achieved for each collaboration target
and future royalties.
45
Biogen
In 2017, BMS out-licensed to Biogen exclusive rights to develop and commercialize BMS-986168, an anti-eTau compound in development
for Progressive Supranuclear Palsy and Alzheimer's disease. Biogen paid $300 million to BMS which was included in Other (income)/
expense, net. BMS is also entitled to contingent development, regulatory and sales-based milestone payments of up to $360 million if
achieved and future royalties. BMS originally acquired the rights to this compound in 2014 through its acquisition of iPierian, Inc. Biogen
assumed all of BMS’s applicable remaining obligations to the former stockholders of iPierian, Inc.
Roche
In 2017, BMS out-licensed to Roche exclusive rights to develop and commercialize BMS-986089, an anti-myostatin adnectin in
development for Duchenne Muscular Dystrophy. Roche paid $170 million to BMS which was included in Other (income)/expense, net.
Roche has ceased the development in Duchenne Muscular Dystrophy in 2019.
F-Star
In 2014, BMS acquired an exclusive option to purchase F-Star and its lead asset FS102, an anti-HER2 antibody fragment, in development
for the treatment of breast and gastric cancer among a well-defined population of HER2-positive patients. In 2017, BMS discontinued
development of FS102 and did not exercise its option, resulting in an IPRD charge of $75 million included in Research and development
expense and attributed to noncontrolling interest.
Note 5. OTHER (INCOME)/EXPENSE, NET

Interest expense $ 656 $ 183 $ 196
Pension and postretirement 1,599 (27) (1)
Royalties and licensing income (1,360) (1,353) (1,351)
Divestiture gains (1,168) (178) (164)
Acquisition expenses 657 — —
Contingent value rights 523 — —
Investment income (464) (173) (126)
Integration expenses 415 — —
Provision for restructuring 301 131 293
Equity investment (gains)/losses (279) 512 (23)
Litigation and other settlements 77 76 (487)
Transition and other service fees (37) (12) (37)
Intangible asset impairment 15 64 —
Equity in net loss/(income) of affiliates 4 (93) (75)
Loss on debt redemption — — 109
Other (1) 16 (19)
Other (income)/expense, net $ 938 $ (854) $ (1,685)
Note 6. RESTRUCTURING
A restructuring and integration plan is being implemented as an initiative to realize $2.5 billion of expected cost synergies resulting from
cost savings and avoidance from the Celgene acquisition. The synergies are expected to be realized in Cost of products sold (10%),
Marketing, selling and administrative expenses (55%) and Research and development expenses (35%). The majority of charges are
expected to be incurred through 2022, and range between $2.8 billion to $3.0 billion. These costs consist of integration planning and
execution expenses, employee termination benefit costs and accelerated stock-based compensation, contract termination costs and other
shutdown costs associated with site exits. Cash outlays in connection with these actions are expected to be approximately $2.5 billion.
Employee workforce reductions were approximately 125 in 2019.
46
2019 Annual Report
The following tables summarize the charges and activity related to the Celgene acquisition:
Year Ended
December 31,
Provision for restructuring $ 256
Integration expenses 415
Asset impairments 3
Total charges $ 674
Year Ended
December 31,
Research and development $ 3
Other (income)/expense, net 671
Total charges $ 674
Year Ended
December 31,
Liability at January 1 $ —
Provision for restructuring(a) 111
Payments (34)
Liability at December 31 $ 77
(a) Excludes $145 million of accelerated stock-based compensation.
In October 2016, a restructuring plan was announced to evolve and streamline BMS's operating model. The majority of charges are
expected to be incurred through 2020, range between $1.5 billion to $2.0 billion, and consist of employee termination benefit costs,
contract termination costs, accelerated depreciation and impairment charges and other costs associated with manufacturing and R&D site
exits. Cash outlays in connection with these actions are expected to be approximately 40% to 50% of the total charges. Charges of
approximately $1.4 billion have been recognized for these actions since the announcement. Employee workforce reductions were
approximately 100 in 2019, 900 in 2018 and 1,900 in 2017.
The following tables summarize the charges and activity related to the Company transformation:
Employee termination costs $ 17 $ 87 $ 267
Other termination costs 28 44 26
Accelerated depreciation 133 113 289
Asset impairments 127 16 241
Other shutdown costs — 8 3
Total charges $ 305 $ 268 $ 826

Cost of products sold $ 180 $ 57 $ 149
Marketing, selling and administrative 1 1 1
Research and development 79 79 383
Other (income)/expense, net 45 131 293
Total charges $ 305 $ 268 $ 826
47

Liability at December 31 $ 99 $ 186 $ 114
Cease-use liability reclassification (3) — —
Liability at January 1 96 186 114
Charges 49 148 319
Change in estimates (4) (17) (26)
Foreign currency translation and other (1) 1 18
Payments (117) (219) (239)
Liability at December 31 $ 23 $ 99 $ 186
Note 7. INCOME TAXES
The provision/(benefit) for income taxes consisted of:

Current:
U.S. $ 1,002 $ 566 $ 3,304
Non-U.S. 1,437 410 399
Total Current 2,439 976 3,703
Deferred:
U.S. (113) (51) 541
Non-U.S. (811) 96 (88)
Total Deferred (924) 45 453
Total Provision $ 1,515 $ 1,021 $ 4,156
Effective Tax Rate
The reconciliation of the effective tax rate to the U.S. statutory Federal income tax rate was as follows:
% of Earnings Before Income Taxes
Earnings before income taxes:
U.S. $ 542 $ 2,338 $ 2,280
Non-U.S. 4,433 3,630 2,851
Total 4,975 5,968 5,131
U.S. statutory rate 1,045 21.0 % 1,253 21.0 % 1,796 35.0 %
Deemed repatriation transition tax — — (56) (0.9)% 2,611 50.9 %
Deferred tax remeasurement — — — — 285 5.6 %
Global intangible low taxed income (GILTI) 849 17.1 % 94 1.6 % — —
Foreign tax effect of certain operations in Ireland, Puerto
Rico and Switzerland (68) (1.4)% (202) (3.4)% (561) (10.9)%
U.S. Federal valuation allowance 25 0.5 % 119 2.0 % — —
U.S. Federal, state and foreign contingent tax matters (13) (0.3)% (55) (0.9)% 72 1.4 %
U.S. Federal research based credits (138) (2.8)% (138) (2.3)% (144) (2.8)%
Fair value adjustments for contingent value rights 110 2.2 % — — — —
Non-deductible R&D charges 5 0.1 % 17 0.3 % 266 5.2 %
Puerto Rico excise tax (163) (3.3)% (152) (2.6)% (131) (2.6)%
Domestic manufacturing deduction — — — — (78) (1.5)%
State and local taxes (net of valuation allowance) (16) (0.3)% 67 1.1 % 77 1.5 %
Foreign and other (121) (2.3)% 74 1.2 % (37) (0.8)%
Total $ 1,515 30.5 % $ 1,021 17.1 % $ 4,156 81.0 %
48
2019 Annual Report
The effective tax rate in 2017 reflects the additional tax expense of $2.9 billion recognized upon enactment of the Act, increasing the
effective tax rate by 56.7%. The effective tax rate in 2018 includes favorable measurement period adjustments to the provisional amounts
recorded in 2017 associated with the Act of $56 million, or 0.9%. The accounting for the reduction of deferred tax assets to the 21% tax
rate was complete as of December 31, 2017, and the tax charge for the deemed repatriation transition tax was complete as of December
31, 2018.
A GILTI tax associated with the Otezla* divestiture was $808 million in 2019.
Prior to the enactment of the Act, earnings for certain of BMS’s manufacturing operations in low tax jurisdictions, such as Switzerland,
Ireland and Puerto Rico, were indefinitely reinvested. As a result of the transition tax under the Act, BMS is no longer indefinitely
reinvested with respect to its undistributed earnings from foreign subsidiaries and has provided a deferred tax liability or foreign and
state income and withholding tax that would apply. BMS remains indefinitely reinvested with respect to its financial statement basis in
excess of tax basis of its foreign subsidiaries. A determination of the deferred tax liability with respect to this basis difference is not
practicable. BMS operates under a favorable tax grant in Puerto Rico not scheduled to expire prior to 2023.
A U.S. Federal valuation allowance was established in 2018 and 2019 as a result of the Nektar equity investment fair value losses that
would be considered limited as a capital loss.
U.S. Federal, state and foreign contingent tax matters includes a $81 million tax benefit in 2019 and $119 million tax benefit in 2018
with respect to lapse of statutes.
Fair value adjustments for contingent value rights are not deductible for tax purposes.
Non deductible R&D charges primarily result from acquisition related and milestone payments to former shareholders including Flexus
Biosciences, Inc., Cardioxyl Pharmaceuticals, Inc. and IFM Therapeutics, Inc. in 2017.
Puerto Rico imposes an excise tax on the gross company purchase price of goods sold from BMS’s manufacturer in Puerto Rico. The
excise tax is recognized in Cost of products sold when the intra-entity sale occurs. For U.S. income tax purposes, the excise tax is not
deductible but results in foreign tax credits that are generally recognized in BMS’s provision for income taxes when the excise tax is
incurred.
49
Deferred Taxes and Valuation Allowance
The components of current and non-current deferred income tax assets/(liabilities) were as follows:
December 31,
Deferred tax assets
Foreign net operating loss carryforwards $ 2,480 $ 2,978
State net operating loss and credit carryforwards 263 121
U.S. Federal net operating loss and credit carryforwards 88 67
Milestone payments and license fees 558 552
Inventory 56 114
Other foreign deferred tax assets 370 327
Share-based compensation 521 54
Other 434 377
Total deferred tax assets 4,930 4,778
Valuation allowance (2,844) (3,193)
Deferred tax assets net of valuation allowance $ 2,086 $ 1,585
Deferred tax liabilities

Depreciation $ (113) $ (61)
Acquired intangible assets (7,387) (220)
Goodwill and other (530) (533)
Total deferred tax liabilities $ (8,030) $ (814)
Deferred tax (liabilities)/assets, net $ (5,944) $ 771
Recognized as:
Deferred income taxes assets – non-current $ 510 $ 815
Deferred income taxes liabilities – non-current (6,454) (19)
Liabilities related to assets held-for-sale — (25)
Total $ (5,944) $ 771
The U.S. Federal net operating loss carryforwards were $216 million at December 31, 2019. These carryforwards were acquired as a
result of certain acquisitions and are subject to limitations under Section 382 of the Internal Revenue Code. The net operating loss
carryforwards expire in varying amounts beginning in 2022. The foreign and state net operating loss carryforwards expire in varying
amounts beginning in 2019 (certain amounts have unlimited lives).
At December 31, 2019, a valuation allowance of $2.8 billion was established for the following items: $2.4 billion primarily for foreign
net operating loss and tax credit carryforwards, $206 million for state deferred tax assets including net operating loss and tax credit
carryforwards and $218 million for U.S. Federal deferred tax assets including equity fair value adjustments and U.S. Federal net operating
loss carryforwards.
Changes in the valuation allowance were as follows:

Balance at beginning of year $ 3,193 $ 2,827 $ 3,078
Provision 75 458 50
Utilization (423) (43) (335)
Foreign currency translation (132) (48) 341
Acquisitions 228 — 2
Non U.S. rate change (97) (1) (309)
Balance at end of year $ 2,844 $ 3,193 $ 2,827
Income tax payments were $1,503 million in 2019, $747 million in 2018 and $546 million in 2017.
50
2019 Annual Report
Business is conducted in various countries throughout the world and is subject to tax in numerous jurisdictions. A significant number of
tax returns that are filed are subject to examination by various Federal, state and local tax authorities. Tax examinations are often complex,
as tax authorities may disagree with the treatment of items reported requiring several years to resolve. Liabilities are established for
possible assessments by tax authorities resulting from known tax exposures including, but not limited to, transfer pricing matters, tax
credit deductibility of certain expenses, and deemed repatriation transition tax. Such liabilities represent a reasonable provision for taxes
ultimately expected to be paid and may need to be adjusted over time as more information becomes known. The effect of changes in
estimates related to contingent tax liabilities is included in the effective tax rate reconciliation above.
A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows (excluding interest and penalties):
Balance at beginning of year $ 995 $ 1,155 $ 995
Gross additions to tax positions related to current year 170 48 173
Gross additions to tax positions related to prior years 19 21 30
Gross additions to tax positions assumed in acquisitions 852 — —
Gross reductions to tax positions related to prior years (35) (106) (22)
Settlements (23) 2 (20)
Reductions to tax positions related to lapse of statute (72) (119) (13)
Cumulative translation adjustment (1) (6) 12
Balance at end of year $ 1,905 $ 995 $ 1,155
Additional information regarding unrecognized tax benefits is as follows:

Unrecognized tax benefits that if recognized would impact the effective tax rate $ 1,809 $ 853 $ 1,002
Accrued interest 292 167 148
Accrued penalties 10 11 15
Accrued interest and penalties payable for unrecognized tax benefits are included in either current or non-current income taxes payable.
Interest and penalties related to unrecognized tax benefits are included in income tax expense.
BMS is currently under examination by a number of tax authorities which have proposed or are considering proposing material adjustments
to tax positions for issues such as transfer pricing, certain tax credits and the deductibility of certain expenses. It is reasonably possible
that new issues will be raised by tax authorities which may require adjustments to the amount of unrecognized tax benefits; however, an
estimate of such adjustments cannot reasonably be made at this time.
It is also reasonably possible that the total amount of unrecognized tax benefits at December 31, 2019 could decrease in the range of
approximately $290 million to $330 million in the next twelve months as a result of the settlement of certain tax audits and other events.
The expected change in unrecognized tax benefits may result in the payment of additional taxes, adjustment of certain deferred taxes
and/or recognition of tax benefits. The following is a summary of major tax jurisdictions for which tax authorities may assert additional
taxes based upon tax years currently under audit and subsequent years that will likely be audited:
U.S. 2008 to 2019
Canada 2012 to 2019
France 2016 to 2019
Germany 2008 to 2019
Italy 2015 to 2019
Japan 2014 to 2019
Switzerland 2015 to 2019
UK 2012 to 2019
51
Note 8. EARNINGS PER SHARE

Amounts in Millions, Except Per Share Data 2019 2018 2017
Net Earnings Attributable to BMS used for Basic and Diluted EPS Calculation $ 3,439 $ 4,920 $ 1,007
Weighted-average common shares outstanding - basic 1,705 1,633 1,645

Incremental shares attributable to share-based compensation plans 7 4 7
Weighted-average common shares outstanding - diluted 1,712 1,637 1,652
Earnings per Common Share

Basic $ 2.02 $ 3.01 $ 0.61
Diluted 2.01 3.01 0.61
Note 9. FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS
Financial instruments include cash and cash equivalents, marketable securities, accounts receivable and payable, debt instruments and
derivatives.
Changes in exchange rates and interest rates create exposure to market risk. Certain derivative financial instruments are used when
available on a cost-effective basis to hedge the underlying economic exposure. These instruments qualify as cash flow, net investment
and fair value hedges upon meeting certain criteria, including effectiveness of offsetting hedged exposures. Changes in fair value of
derivatives that do not qualify for hedge accounting are recognized in earnings as they occur. Derivative financial instruments are not
used for trading purposes.
Financial instruments are subject to counterparty credit risk which is considered as part of the overall fair value measurement. Counterparty
credit risk is monitored on an ongoing basis and mitigated by limiting amounts outstanding with any individual counterparty, utilizing
conventional derivative financial instruments and only entering into agreements with counterparties that meet high credit quality standards.
The consolidated financial statements would not be materially impacted if any counterparty failed to perform according to the terms of
its agreement. Collateral is not required by any party whether derivatives are in an asset or liability position under the terms of the
agreements.
Fair Value Measurements — The fair value of financial instruments are classified into one of the following categories:
Level 1 inputs utilize unadjusted quoted prices in active markets accessible at the measurement date for identical assets or liabilities.
The fair value hierarchy provides the highest priority to Level 1 inputs.
Level 2 inputs utilize observable prices for similar instruments and quoted prices for identical or similar instruments in non-active
markets. Additionally, certain corporate debt securities utilize a third-party matrix pricing model using significant inputs
corroborated by market data for substantially the full term of the assets. Equity and fixed income funds are primarily invested in
publicly traded securities valued at the respective NAV of the underlying investments. Level 2 derivative instruments are valued
using LIBOR yield curves, less credit valuation adjustments, and observable forward foreign exchange rates at the reporting date.
Valuations of derivative contracts may fluctuate considerably from volatility in underlying foreign currencies and underlying
interest rates driven by market conditions and the duration of the contract.
Level 3 unobservable inputs are used when little or no market data is available. Level 3 financial liabilities consist of other
acquisition related contingent consideration and success payments related to undeveloped product rights resulting from the Celgene
acquisition.
52
2019 Annual Report
Financial assets and liabilities measured at fair value on a recurring basis are summarized below:
December 31, 2019 December 31, 2018
Dollars in Millions Level 1 Level 2 Level 3 Level 1 Level 2
Cash and cash equivalents - Money market and
other securities $ — $ 10,448 $ — $ — $ 6,173
Marketable debt securities:
Certificates of deposit — 1,227 — — 971
Commercial paper — 1,093 — — 273
Corporate debt securities — 1,494 — — 2,379
Derivative assets — 140 — — 44
Equity investments 2,020 175 — 88 391
Derivative liabilities — (40) — — (31)
Contingent consideration liability:
Contingent value rights 2,275 — — — —
Other acquisition related contingent consideration — — 106 — —
Contingent consideration obligations are recorded at their estimated fair values and BMS revalues these obligations each reporting period
until the related contingencies are resolved. The contingent value rights are adjusted to fair value using the traded price of the securities
at the end of each reporting period. The fair value measurements for other contingent consideration liabilities are estimated using
probability-weighted discounted cash flow approaches that are based on significant unobservable inputs related to product candidates
acquired in business combinations and are reviewed quarterly. These inputs include, as applicable, estimated probabilities and timing of
achieving specified development and regulatory milestones, estimated annual sales and the discount rate used to calculate the present
value of estimated future payments. Significant changes which increase or decrease the probabilities of achieving the related development
and regulatory events, shorten or lengthen the time required to achieve such events, or increase or decrease estimated annual sales would
result in corresponding increases or decreases in the fair values of these obligations. The fair value of our contingent consideration as of
December 31, 2019 was calculated using the following significant unobservable inputs:
Ranges (weighted average)
utilized as of:
Inputs December 31, 2019
Discount rate 2.2% to 3.2% (2.6%)
Probability of payment 0% to 68% (4.1%)
Projected year of payment for development and regulatory milestones 2020 to 2029 (2024)
Projected year of payment for sales-based milestones and other amounts calculated as a percentage of
annual sales N/A
There were no transfers between levels 1, 2 and 3 during the year ended December 31, 2019. The following table represents a roll-forward
of the fair value of level 3 instruments:
Year Ended
December 31,
Fair value as of January 1 $ —
Celgene acquisition 106
Fair value as of December 31 $ 106
53
Available-for-sale Debt Securities and Equity Investments
Changes in fair value of equity investments are included in Other (income)/expense, net. The following table summarizes BMS's available-
for-sale debt securities and equity investments:
Gross Unrealized Gross Unrealized
Amortized Amortized
Dollars in Millions Cost Gains Losses Fair Value Cost Gains Losses Fair Value
Certificates of deposit $ 1,227 $ — $ — $ 1,227 $ 971 $ — $ — $ 971
Commercial paper 1,093 — — 1,093 273 — — 273
Corporate debt securities 1,487 8 (1) 1,494 2,416 — (37) 2,379
$ 3,807 $ 8 $ (1) 3,814 $ 3,660 $ — $ (37) 3,623
Equity investments 2,195 479

Total $ 6,009 $ 4,102
December 31,
Marketable debt securities - current $ 3,047 $ 1,848
Other current assets — 125
Marketable debt securities - non-current(a) 767 1,775
Other non-current assets 2,195 354
Total $ 6,009 $ 4,102
(a) All non-current marketable debt securities mature within five years as of December 31, 2019 and December 31, 2018.
Equity investments not measured at fair value and excluded from the above table were limited partnerships and other equity method
investments of $429 million at December 31, 2019 and $114 million at December 31, 2018 and other equity investments without readily
determinable fair values of $781 million at December 31, 2019 and $206 million at December 31, 2018. These amounts are included in
Other non-current assets.
The following table summarizes net gain/(loss) recorded for equity investments with readily determinable fair values held as of
December 31, 2019:
Net gain/(loss) recognized $ 170 $ (530)
Less: Net gain recognized for equity investments sold 14 7
Net unrealized gain/(loss) on equity investments held $ 156 $ (537)
Qualifying Hedges and Non-Qualifying Derivatives
Cash Flow Hedges — Foreign currency forward contracts are used to hedge certain forecasted intercompany inventory purchases and
sales transactions and certain foreign currency transactions. The fair value for contracts designated as cash flow hedges is temporarily
reported in Accumulated other comprehensive loss and included in earnings when the hedged item affects earnings. Upon adoption of
the amended guidance for derivatives and hedging, the entire change in fair value of the hedging instrument included in the assessment
of hedge effectiveness is recorded in the derivatives qualifying as cash flow hedges component of Other Comprehensive Income/(Loss).
The net gain or loss on foreign currency forward contracts is expected to be reclassified to net earnings (primarily included in Cost of
products sold and Other (income)/expense, net) within the next 12 months. The notional amount of outstanding foreign currency forward
contracts was primarily attributed to the euro of $1.8 billion and Japanese yen of $911 million at December 31, 2019.
The earnings impact related to discontinued cash flow hedges and hedge ineffectiveness was not significant during all periods presented.
Cash flow hedge accounting is discontinued when the forecasted transaction is no longer probable of occurring within 60 days after the
originally forecasted date or when the hedge is no longer effective. Assessments to determine whether derivatives designated as qualifying
hedges are highly effective in offsetting changes in the cash flows of hedged items are performed at inception and on a quarterly basis.
Foreign currency forward contracts not designated as hedging instruments are used to offset exposures in certain foreign currency
denominated assets, liabilities and earnings. Changes in the fair value of these derivatives are recognized in earnings as they occur.
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2019 Annual Report
BMS may hedge a portion of its future foreign currency exposure by utilizing a strategy that involves both a purchased local currency
put option and a written local currency call option that are accounted for as hedges of future sales denominated in that local currency.
Specifically, BMS sells (or writes) a local currency call option and purchases a local currency put option with the same expiration dates
and local currency notional amounts but with different strike prices. The premium collected from the sale of the call option is equal to
the premium paid for the purchased put option, resulting in no net premium being paid. This combination of transactions is generally
referred to as a “zero-cost collar.” The expiration dates and notional amounts correspond to the amount and timing of forecasted foreign
currency sales. The foreign currency zero-cost collar contracts outstanding as of December 31, 2019 had settlement dates within 12
months. If the U.S. Dollar weakens relative to the currency of the hedged anticipated sales, the purchased put option value reduces to
zero and we benefit from the increase in the U.S. Dollar equivalent value of our anticipated foreign currency cash flows; however, this
benefit would be capped at the strike level of the written call, which forms the upper end of the collar.
Net Investment Hedges — Non-U.S. dollar borrowings of €950 million ($1.1 billion) at December 31, 2019 are designated as net investment
hedges to hedge euro currency exposures of the net investment in certain foreign affiliates and are recognized in long-term debt. The
effective portion of foreign exchange gain on the remeasurement of euro debt was included in the foreign currency translation component
of Accumulated other comprehensive loss with the related offset in long-term debt.
In January 2018, $300 million of cross-currency interest rate swap contracts maturing in December 2022 were entered into and designated
to hedge Japanese yen currency exposures of BMS's net investment in its Japan subsidiary. Contract fair value changes are recorded in
the foreign currency translation component of Other Comprehensive Income/(Loss) with a related offset in Other non-current assets or
Other non-current liabilities.
Fair Value Hedges — Fixed to floating interest rate swap contracts are designated as fair value hedges and used as an interest rate risk
management strategy to create an appropriate balance of fixed and floating rate debt. The contracts and underlying debt for the hedged
benchmark risk are recorded at fair value. The effective interest rate for the contracts is one-month LIBOR (1.8% as of December 31,
2019) plus an interest rate spread of 4.6%. Gains or losses resulting from changes in fair value of the underlying debt attributable to the
hedged benchmark interest rate risk are recorded in interest expense with an associated offset to the carrying value of debt. Since the
specific terms and notional amount of the swap are intended to align with the debt being hedged, all changes in fair value of the swap
are recorded in interest expense with an associated offset to the derivative asset or liability on the consolidated balance sheet. As a result,
there was no net impact in earnings. When the underlying swap is terminated prior to maturity, the fair value adjustment to the underlying
debt is amortized as a reduction to interest expense over the remaining term of the debt.
Following the announcement of the Celgene acquisition, forward starting interest rate swap option contracts were entered into with a
total notional value of $7.6 billion to hedge future interest rate risk associated with the anticipated issuance of long-term debt to fund the
acquisition. In April 2019, deal contingent forward starting interest rate swap contracts were entered into, with an aggregate notional
principal amount of $10.4 billion to hedge interest rate risk associated with the anticipated issuance of long-term debt to fund the acquisition
and the forward starting interest rate swap option contracts were terminated. The deal contingent forward starting interest rate swap
contracts were terminated upon the completion of the Celgene acquisition.
The following summarizes the fair value of outstanding derivatives:

Asset(a) Liability(b) Asset(a) Liability(b)
Fair Fair Fair Fair
Dollars in Millions Notional Value Notional Value Notional Value Notional Value
Derivatives designated as hedging instruments:
Interest rate swap contracts $ 255 $ 6 $ — $ — $ — $ — $ 755 $ (10)
Cross-currency interest rate swap contracts 175 2 125 (1) 50 — 250 (5)
Foreign currency forward contracts 766 27 980 (20) 1,503 44 496 (10)
Derivatives not designated as hedging instruments:

Foreign currency forward contracts 2,342 91 1,173 (10) 54 — 600 (6)
Foreign currency zero-cost collar contracts 2,482 14 2,235 (9) — — — —
(a) Included in Other current assets and Other non-current assets.
(b) Included in Other current liabilities and Other non-current liabilities.
55
The following table summarizes the financial statement classification and amount of (gain)/loss recognized on hedging instruments:
2019 2018 2017
Other Other Other
Cost of (income)/ Cost of (income)/ Cost of (income)/
products expense, products expense, products expense,
Dollars in Millions sold net sold net sold net
Interest rate swap contracts $ — $ (24) $ — $ (23) $ — $ (31)
Cross-currency interest rate swap contracts — (9) — (8) — —
Foreign currency forward contracts (103) 11 (4) (14) (12) 52
Forward starting interest rate swap option contracts — 35 — — — —
Deal contingent forward starting interest rate swap
contracts — 240 — — — —
Foreign currency zero-cost collar contracts — 2 — — — —
The following table summarizes the effect of derivative and non-derivative instruments designated as hedging instruments in Other
Comprehensive Income/(Loss):
Derivatives qualifying as cash flow hedges
Foreign currency forward contracts gain/(loss):
Recognized in Other Comprehensive Income/(Loss)(a) $ 65 $ 86 $ (108)
Reclassified to Cost of products sold (103) (4) (12)
Reclassified to Other (income)/expense, net — — 36
Derivatives qualifying as net investment hedges

Cross-currency interest rate swap contracts gain/(loss):
Recognized in Other Comprehensive Income/(Loss) 6 (5) —
Non-derivatives qualifying as net investment hedges

Non U.S. dollar borrowings gain/(loss):
Recognized in Other Comprehensive Income/(Loss) 29 45 (134)
(a) The amount is expected to be reclassified into earnings in the next 12 months.
Debt Obligations
In 2019, BMS issued an aggregate principal amount of approximately $19.0 billion of floating rate and fixed rate unsecured senior notes
with proceeds net of discount and deferred loan issuance costs of $18.8 billion. The notes rank equally in right of payment with all of
BMS's existing and future senior unsecured indebtedness and the fixed rate notes are redeemable at any time, in whole, or in part, at
varying specified redemption prices plus accrued and unpaid interest.
In 2017, BMS issued an aggregate principal amount of $1.5 billion of senior unsecured notes in registered public offerings with proceeds
net of discount and deferred loan issuance costs of $1.5 billion. The notes rank equally in right of payment with all of BMS's existing
and future senior unsecured indebtedness and are redeemable at any time, in whole, or in part, at varying specified redemption prices
plus accrued and unpaid interest.
In connection with the Celgene acquisition, BMS commenced offers to exchange outstanding notes issued by Celgene of approximately
$19.9 billion for a like-amount of new notes to be issued by BMS (the “exchange offers”). This exchange transaction was accounted for
as a modification of the assumed debt instruments. Following the settlement of the exchange offers, BMS issued approximately $18.5
billion of new notes in exchange for the Celgene notes tendered in the exchange offers. The aggregate principal amount of Celgene notes
that remained outstanding following the settlement of the exchange offers was approximately $1.3 billion.
The fair value of long-term debt was $50.7 billion and $7.1 billion at December 31, 2019 and 2018, respectively, valued using Level 2
inputs which are based upon the quoted market prices for the same or similar debt instruments. The fair value of short-term borrowings
approximates the carrying value due to the short maturities of the debt instruments.
Repayment of Notes at maturity aggregated $1.3 billion in 2019 and $750 million in 2017.
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2019 Annual Report
Interest payments were $414 million in 2019, $218 million in 2018 and $221 million in 2017.
At December 31, 2019, BMS had four separate revolving credit facilities totaling $6.0 billion, which consisted of a 364-day $2.0 billion
facility that was renewed to January 2021, a $1.0 billion facility expiring in January 2022, and two five-year $1.5 billion facilities that
were extended to September 2023 and July 2024, respectively. The facilities provide for customary terms and conditions with no financial
covenants and may be used to provide backup liquidity for BMS's commercial paper borrowings. BMS's $1.0 billion facility and its two
$1.5 billion revolving facilities are extendable annually by one year on the anniversary date with the consent of the lenders. BMS's 364-
day $2.0 billion facility can be renewed for one year on each anniversary date, subject to certain terms and conditions. No borrowings
were outstanding under any revolving credit facility at December 31, 2019 or 2018.
BMS also entered into an $8.0 billion term loan credit agreement consisting of a $1.0 billion 364-day tranche, a $4.0 billion three-year
tranche and a $3.0 billion five-year tranche in connection with the Celgene acquisition. The term loan is subject to customary terms and
conditions and does not have any financial covenants. The proceeds under the term loan were used to fund a portion of the cash to be
paid in the Celgene acquisition and the payment of related fees and expenses. Subsequent to the completion of the acquisition, BMS
repaid the term loan in its entirety using cash proceeds generated from the Otezla* divestiture. Refer to “—Note 4. Acquisitions,
Divestitures, Licensing and Other Arrangements” for more information.
Available financial guarantees provided in the form of bank overdraft facilities, stand-by letters of credit and performance bonds were
approximately $850 million at December 31, 2019. Stand-by letters of credit are issued through financial institutions in support of
guarantees for various obligations. Performance bonds are issued to support a range of ongoing operating activities, including sale of
products to hospitals and foreign ministries of health, bonds for customs, duties and value added tax and guarantees related to miscellaneous
legal actions.
Short-term debt obligations include:

December 31,
Non-U.S. short-term borrowings $ 351 $ 320
Current portion of long-term debt 2,763 1,249
Other 232 134
Total $ 3,346 $ 1,703
57
Long-term debt and the current portion of long-term debt includes:

December 31,
Principal Value:
1.600% Notes due 2019 $ — $ 750
1.750% Notes due 2019 — 500
Floating Rate Notes due 2020 750 —
2.875% Notes due 2020 1,500 —
3.950% Notes due 2020 500 —
2.250% Notes due 2021 500 —
2.550% Notes due 2021 1,000 —
2.875% Notes due 2021 500 —
Floating Rate Notes due 2022 500 —
2.000% Notes due 2022 750 750
2.600% Notes due 2022 1,500 —
3.250% Notes due 2022 1,000 —
3.550% Notes due 2022 1,000 —
2.750% Notes due 2023 750 —
3.250% Notes due 2023 500 500
3.250% Notes due 2023 1,000 —
4.000% Notes due 2023 700 —
7.150% Notes due 2023 302 302
2.900% Notes due 2024 3,250 —
3.625% Notes due 2024 1,000 —
1.000% Euro Notes due 2025 638 655
3.875% Notes due 2025 2,500 —
3.200% Notes due 2026 2,250 —
6.800% Notes due 2026 256 256
3.250% Notes due 2027 750 750
3.450% Notes due 2027 1,000 —
3.900% Notes due 2028 1,500 —
3.400% Notes due 2029 4,000 —
1.750% Euro Notes due 2035 638 655
5.875% Notes due 2036 287 287
6.125% Notes due 2038 226 226
4.125% Notes due 2039 2,000 —
5.700% Notes due 2040 250 —
3.250% Notes due 2042 500 500
5.250% Notes due 2043 400 —
4.500% Notes due 2044 500 500
4.625% Notes due 2044 1,000 —
5.000% Notes due 2045 2,000 —
4.350% Notes due 2047 1,250 —
4.550% Notes due 2048 1,500 —
4.250% Notes due 2049 3,750 —
6.875% Notes due 2097 87 87
0.13% - 5.75% Other - maturing through 2024 51 58
Total $ 44,335 $ 6,776
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2019 Annual Report
December 31,
Principal Value $ 44,335 $ 6,776
Adjustments to Principal Value:

Fair value of interest rate swap contracts 6 (10)
Unamortized basis adjustment from swap terminations 175 201
Unamortized bond discounts and issuance costs (280) (72)
Unamortized purchase price adjustments of Celgene debt 1,914 —
Total $ 46,150 $ 6,895
Current portion of long-term debt 2,763 1,249

Long-term debt 43,387 5,646
Total $ 46,150 $ 6,895
Note 10. RECEIVABLES

December 31,
Trade receivables $ 6,888 $ 4,914
Less charge-backs and cash discounts (391) (245)
Less bad debt allowances (21) (33)
Net trade receivables 6,476 4,636
Alliance, Royalties, VAT and other 1,209 1,111
Receivables $ 7,685 $ 5,747
Non-U.S. receivables sold on a nonrecourse basis were $797 million in 2019, $756 million in 2018 and $637 million in 2017. In the
aggregate, receivables from three pharmaceutical wholesalers in the U.S. represented approximately 50% and 70% of total trade receivables
at December 31, 2019 and 2018, respectively.
Changes to the allowances for bad debt, charge-backs and cash discounts were as follows:
Balance at beginning of year $ 278 $ 252 $ 174
Celgene acquisition 116 — —
Provision 3,725 2,739 2,090
Utilization (3,705) (2,707) (2,015)
Other (2) (6) 3
Balance at end of year $ 412 $ 278 $ 252
Note 11. INVENTORIES

December 31,
Finished goods $ 2,227 $ 356
Work in process 3,267 1,152
Raw and packaging materials 172 116
Total Inventories $ 5,666 $ 1,624
Inventories $ 4,293 $ 1,195

Other non-current assets 1,373 429
Prior year amounts of certain inventory balances are presented as work in process to conform to the current year presentation rather than
finished goods and raw materials. Total Inventories include fair value adjustments resulting from the Celgene acquisition of $3.5 billion,
which will be recognized in future periods. Other non-current assets include inventory expected to remain on hand beyond one year in
both periods.
59
Note 12. PROPERTY, PLANT AND EQUIPMENT

December 31,
Land $ 187 $ 104
Buildings 6,336 5,231
Machinery, equipment and fixtures 3,157 2,962
Construction in progress 527 548
Gross property, plant and equipment 10,207 8,845
Less accumulated depreciation (3,955) (3,818)
Property, plant and equipment $ 6,252 $ 5,027
United States $ 4,835 $ 3,772

Europe 1,291 1,140
Rest of the World 126 115
Total $ 6,252 $ 5,027
Depreciation expense was $554 million in 2019, $505 million in 2018 and $682 million in 2017.
Note 13. LEASES
Leased facilities for office, research and development, and storage and distribution purposes, comprise approximately 90% of the total
lease obligation. Lease terms vary based on the nature of operations and the market dynamics in each country; however, all leased facilities
are classified as operating leases with remaining lease terms between one year and 20 years. Most leases contain specific renewal options
for periods ranging between one year and 10 years where notice to renew must be provided in advance of lease expiration or automatic
renewals where no advance notice is required. Periods covered by an option to extend the lease were included in the non-cancellable
lease term when exercise of the option was determined to be reasonably certain. Certain leases also contain termination options that
provide the flexibility to terminate the lease ahead of its expiration with sufficient advance notice. Periods covered by an option to
terminate the lease were included in the non-cancellable lease term when exercise of the option was determined not to be reasonably
certain. Judgment is required in assessing whether renewal and termination options are reasonably certain to be exercised. Factors are
considered such as contractual terms compared to current market rates, leasehold improvements expected to have significant value, costs
to terminate a lease and the importance of the facility to operations. Costs determined to be variable and not based on an index or rate
were not included in the measurement of real estate lease liabilities. These variable costs include real estate taxes, insurance, utilities,
common area maintenance and other operating costs. As the implicit rate on most leases is not readily determinable, an incremental
borrowing rate was applied on a portfolio approach to discount its real estate lease liabilities.
The remaining 10% of lease obligations are comprised of vehicles used primarily by salesforce and an R&D facility operated by a third
party under management's direction. Vehicle lease terms vary by country with terms generally between one year and four years.
The following table summarizes the components of lease expense:

Year Ended
December 31,
Operating lease cost $ 115
Variable lease cost 25
Short-term lease cost 20
Sublease income (4)
Total operating lease expense $ 156
Operating lease right-of-use assets and liabilities were as follows:

December 31, January 1,
Other non-current assets $ 704 $ 543
Other current liabilities 133 40

Other non-current liabilities 672 548
Total liabilities $ 805 $ 588
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2019 Annual Report
Future lease payments for non-cancellable operating leases as of December 31, 2019 were as follows:
Dollars in Millions
2020 $ 165
2021 145
2022 130
2023 104
2024 68
Thereafter 354
Total future lease payments 966
Less imputed interest 161

Total lease liability $ 805
Future minimum lease payments under non-cancelable operating leases as of December 31, 2018 were approximately $100 million per
year from 2019 through 2023 and $200 million thereafter.
Right-of-use assets obtained in exchange for new operating lease obligations were $231 million for the year ended December 31, 2019,
primarily relates to $223 million of right-of-use assets acquired in the Celgene acquisition. Cash paid for amounts included in the
measurement of operating lease liabilities was $79 million for the year ended December 31, 2019, net of a $33 million lease incentive
received in the second quarter. The weighted-average remaining lease term was 9 years and the discount rate was 4% as of December 31,
2019.
Note 14. GOODWILL AND OTHER INTANGIBLE ASSETS

December 31,
Estimated
Dollars in Millions Useful Lives 2019 2018
Goodwill(a) $ 22,488 $ 6,538
Other intangible assets(a):

Licenses 5 – 15 years 482 510
Acquired developed product rights 3 – 15 years 46,827 2,357
Capitalized software 3 – 10 years 1,297 1,156
IPRD 19,500 32
Gross other intangible assets 68,106 4,055
Less accumulated amortization (4,137) (2,964)
Other intangible assets $ 63,969 $ 1,091
(a) Includes goodwill and other intangible assets recognized as part of the Celgene acquisition in 2019. Refer to “—Note 4. Acquisitions, Divestitures, Licensing and
Other Arrangements” for more information related to the Celgene acquisition.
Amortization expense of other intangible assets was $1,255 million in 2019, $198 million in 2018 and $190 million in 2017. Future
annual amortization expense of other intangible assets is expected to be approximately $9.3 billion in 2020, $9.3 billion in 2021, $9.1
billion in 2022, $8.4 billion in 2023, and $7.4 billion in 2024.
Other intangible asset impairment charges were $66 million in 2019, $84 million in 2018 and $80 million in 2017. A $32 million IPRD
impairment charge was recorded in Research and development in 2019 following a decision to discontinue development of an
investigational compound obtained in the acquisition of Medarex. A $64 million impairment charge was recorded in Other (income)/
expense, net in 2018 for an out-licensed asset obtained in the 2010 acquisition of ZymoGenetics, Inc., which did not meet its primary
endpoint in a Phase II clinical study. A $75 million IPRD impairment charge was recognized and attributed to noncontrolling interest in
2017 after the option to purchase F-Star was not exercised.
61
Note 15. SUPPLEMENTAL FINANCIAL INFORMATION

December 31,
Prepaid and refundable income taxes $ 754 $ 774
Research and development 410 337
Assets held-for-sale — 479
Other 819 425
Other current assets $ 1,983 $ 2,015
December 31,
Equity investments $ 3,405 $ 674
Inventories 1,373 429
Operating leases 704 —
Pension and postretirement 456 809
Restricted cash 390 —
Other 276 112
Other non-current assets $ 6,604 $ 2,024
December 31,
Rebates and returns $ 4,275 $ 2,417
Income taxes payable 1,517 398
Employee compensation and benefits 1,457 848
Research and development 1,324 805
Dividends 1,025 669
Interest 493 69
Royalties 418 391
Other 1,871 1,462
Other current liabilities $ 12,513 $ 7,059
December 31,
Income taxes payable $ 5,368 $ 3,024
Contingent value rights 2,275 —
Pension and postretirement 725 566
Deferred compensation 287 231
Other 350 251
Other non-current liabilities $ 10,101 $ 4,540
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2019 Annual Report
Note 16. EQUITY

Capital in
Excess Accumulated
Common Stock of Par Other Treasury Stock
Value Comprehensive Retained Noncontrolling
Dollars and Shares in Millions Shares Par Value of Stock Loss Earnings Shares Cost Interest
Balance at January 1, 2017 2,208 $ 221 $ 1,725 $ (2,503) $ 33,513 536 $(16,779) $ 170
Accounting change - cumulative effect(a) — — — — (787) — — —
Adjusted balance at January 1, 2017 2,208 221 1,725 (2,503) 32,726 536 (16,779) 170
Net earnings — — — — 1,007 — — 27
Other Comprehensive Income/(Loss) — — — 214 — — — —
Cash dividends declared(c) — — — — (2,573) — — —
Share repurchase program — — — — — 44 (2,477) —
Stock compensation — — 173 — — (5) 7 —
Variable interest entity — — — — — — — (59)
Distributions — — — — — — — (32)
Balance at December 31, 2017 2,208 221 1,898 (2,289) 31,160 575 (19,249) 106
Accounting change - cumulative effect(b) — — — (34) 332 — — —
Net earnings — — — — 4,920 — — 27
Other Comprehensive Income/(Loss) — — — (156) — — — —
Share repurchase program — — — — — 5 (313) —
Stock compensation — — 183 — — (4) (12) —
Adoption of ASU 2018-02(b) — — — (283) 283 — — —
Balance at December 31, 2018 2,208 221 2,081 (2,762) 34,065 576 (19,574) 96
Accounting change - cumulative effect(b) — — — — 5 — — —
Net earnings — — — — 3,439 — — 21
Other Comprehensive Income/(Loss) — — — 1,242 — — — —
Celgene acquisition 715 71 42,721 — — — — —
Share repurchase program — — (1,400) — — 105 (5,900) —
Stock compensation — — 307 — — (9) 117 —
Balance at December 31, 2019 2,923 $ 292 $ 43,709 $ (1,520) $ 34,474 672 $(25,357) $ 100
(a) Cumulative effect resulting from adoption of ASU 2016-16.
(b) Cumulative effect resulting from adoption of ASU 2014-09.
(c) Cash dividends declared per common share were $1.68, $1.61 and $1.57 in 2019, 2018 and 2017, respectively.
BMS has a share repurchase program, authorized by its Board of Directors, allowing for repurchases of its shares effected in the open
market or through privately negotiated transactions in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as
amended (the “Exchange Act”), including through Rule 10b5-1 trading plans. The share repurchase program does not have an expiration
date and may be suspended or discontinued at any time. Treasury stock is recognized at the cost to reacquire the shares. Shares issued
from treasury are recognized utilizing the first-in first-out method.
In the fourth quarter of 2019, BMS executed accelerated share repurchase agreements (“ASR”) with Morgan Stanley & Co. LLC and
Barclays Bank PLC to repurchase an aggregate $7 billion of common stock. The ASR was funded with cash on-hand. Approximately 99
million shares of common stock, representing approximately 80% of the $7 billion aggregate repurchase price at the then current stock
price, were delivered to BMS and included in treasury stock. The agreements are expected to settle during the second quarter of 2020,
upon which additional shares of common stock may be delivered to BMS or, under certain circumstances, BMS may be required to make
a cash payment or may elect to deliver shares of common stock to the counterparties. The total number of shares ultimately repurchased
under the ASRs will be determined upon final settlement and will be based on a discount to the volume-weighted average price of BMS’s
common stock during the ASR period.
BMS completed accelerated share repurchase agreements that repurchased approximately 36.5 million shares of common stock for an
aggregate $2 billion in 2017. The agreements were funded through a combination of debt and cash.
63
The components of Other Comprehensive Income/(Loss) were as follows:

2019 2018 2017
After After After
Dollars in Millions Pretax Tax Tax Pretax Tax Tax Pretax Tax Tax
Derivatives qualifying as cash flow hedges:
Unrealized gains/(losses) $ 65 $ (7) $ 58 $ 86 $ (9) $ 77 $ (101) $ 33 $ (68)
Reclassified to net earnings(a) (103) 13 (90) (4) (3) (7) 19 (8) 11
Derivatives qualifying as cash flow hedges (38) 6 (32) 82 (12) 70 (82) 25 (57)
Pension and postretirement benefits:

Actuarial (losses)/gains (143) 28 (115) (89) (3) (92) 47 11 58
Amortization(b) 55 (11) 44 65 (13) 52 77 (31) 46
Settlements(b) 1,640 (366) 1,274 121 (28) 93 167 (57) 110
Pension and postretirement benefits 1,552 (349) 1,203 97 (44) 53 291 (77) 214
Available-for-sale securities:
Unrealized gains/(losses) 42 (9) 33 (30) 5 (25) 38 6 44
Realized losses/(gains)(b) 3 — 3 — — — (7) 2 (5)
Available-for-sale securities 45 (9) 36 (30) 5 (25) 31 8 39
Foreign currency translation 43 (8) 35 (245) (9) (254) (20) 38 18
Other Comprehensive Income/(Loss) $ 1,602 $ (360) $ 1,242 $ (96) $ (60) $ (156) $ 220 $ (6) $ 214
(a) Included in Cost of products sold.
(b) Included in Other (income)/expense, net.
The accumulated balances related to each component of Other Comprehensive Income/(Loss), net of taxes, were as follows:
December 31,
Derivatives qualifying as cash flow hedges $ 19 $ 51
Pension and postretirement benefits (899) (2,102)
Available-for-sale securities 6 (30)
Foreign currency translation (646) (681)
Accumulated other comprehensive loss $ (1,520) $ (2,762)
Note 17. RETIREMENT BENEFITS
BMS sponsors defined benefit pension plans, defined contribution plans and termination indemnity plans for regular full-time employees.
The principal defined benefit pension plan was the Bristol-Myers Squibb Retirement Income Plan (the “Plan”), which covered most U.S.
employees. Future benefits related to service for the Plan were eliminated in 2009. BMS contributed at least the minimum amount required
by ERISA. Plan benefits were based primarily on the participant’s years of credited service and final average compensation.
In December 2018, BMS announced plans to fully terminate the Plan. Pension obligations related to the Plan were to be distributed
through a combination of lump sum payments to eligible Plan participants who elected such payments and through the purchase of group
annuity contracts from wholly owned insurance subsidiaries of Athene Holding Ltd. (“Athene”). In 2019, $1.3 billion was distributed to
Plan participants who elected lump sum payments during the election window, and group annuity contracts were purchased from Athene
for $2.6 billion for the remaining Plan participants for whom Athene irrevocably assumed the pension obligations. These transactions
fully terminated the Plan and resulted in a $1.5 billion non-cash pre-tax pension settlement charge in 2019.
BMS acquired Celgene on November 20, 2019. Certain of Celgene's international subsidiaries have both funded and unfunded defined
benefit pension plans. We have recorded the fair value of the Celgene plans using assumptions and accounting policies consistent with
those disclosed by BMS. Upon acquisition, the excess of projected benefit obligation over the plan assets was recognized as a liability
and previously existing deferred actuarial gains and losses and unrecognized service costs or benefits were eliminated.
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2019 Annual Report
The net periodic benefit cost/(credit) of defined benefit pension plans includes:
Service cost — benefits earned during the year $ 26 $ 26 $ 25
Interest cost on projected benefit obligation 115 193 188
Expected return on plan assets (200) (386) (411)
Amortization of prior service credits (4) (4) (4)
Amortization of net actuarial loss 59 74 82
Settlements and Curtailments 1,640 121 159
Special termination benefits — — 3
Net periodic pension benefit cost/(credit) $ 1,636 $ 24 $ 42
Pension settlement charges were recognized after determining the annual lump sum payments will exceed the annual interest and service
costs for certain pension plans, including the primary U.S. pension plan in 2019, 2018 and 2017.
Changes in defined benefit pension plan obligations, assets, funded status and amounts recognized in the consolidated balance sheets
were as follows:
Benefit obligations at beginning of year $ 5,966 $ 6,749
Service cost—benefits earned during the year 26 26
Interest cost 115 193
Settlements and Curtailments (4,105) (278)
Actuarial losses/(gains) 777 (523)
Benefits paid (109) (123)
Acquisition/Divestiture 262 —
Foreign currency and other 8 (78)
Benefit obligations at end of year $ 2,940 $ 5,966
Fair value of plan assets at beginning of year $ 6,129 $ 6,749

Actual return on plan assets 804 (203)
Employer contributions 63 71
Settlements (4,104) (276)
Benefits paid (109) (123)
Asset transfer (424) —
Acquisition/Divestiture 164 —
Foreign currency and other 13 (89)
Fair value of plan assets at end of year $ 2,536 $ 6,129
(Unfunded)/Funded status $ (404) $ 163
Assets/(Liabilities) recognized:
Other non-current assets $ 192 $ 622
Other current liabilities (27) (32)
Other non-current liabilities (569) (427)
Funded status $ (404) $ 163
Recognized in Accumulated other comprehensive loss:

Net actuarial losses $ 1,192 $ 2,717
Prior service credit (26) (30)
Total $ 1,166 $ 2,687
The accumulated benefit obligation for defined benefit pension plans was $2.9 billion and $6.0 billion at December 31, 2019 and 2018,
respectively.
65
Additional information related to pension plans was as follows:

December 31,
Pension plans with projected benefit obligations in excess of plan assets:
Projected benefit obligation $ 1,652 $ 1,275
Fair value of plan assets 1,056 817
Pension plans with accumulated benefit obligations in excess of plan assets:
Accumulated benefit obligation 1,417 1,181
Fair value of plan assets 875 757
Actuarial Assumptions
Weighted-average assumptions used to determine defined benefit pension plan obligations were as follows:
December 31,
2019 2018
Discount rate 1.6% 3.5%
Rate of compensation increase 1.3% 0.5%
Weighted-average actuarial assumptions used to determine defined benefit pension plan net periodic benefit cost/(credit) were as follows:
2019 2018 2017
Discount rate 3.2% 3.1% 3.5%
Expected long-term return on plan assets 4.5% 6.2% 7.0%
Rate of compensation increase 0.5% 0.5% 0.5%
The yield on high quality corporate bonds matching the duration of the benefit obligations is used in determining the discount rate. The
Citi Pension Discount curve is used in developing the discount rate for the U.S. plans.
The expected return on plan assets assumption for each plan is based on management's expectations of long-term average rates of return
to be achieved by the underlying investment portfolio. Several factors are considered in developing the expected return on plan assets,
including long-term historical returns and input from external advisors. Individual asset class return forecasts were developed based upon
market conditions, for example, price-earnings levels and yields and long-term growth expectations. The expected long-term rate of return
is the weighted-average of the target asset allocation of each individual asset class.
Actuarial gains and losses resulted from changes in actuarial assumptions (such as changes in the discount rate and revised mortality
rates) and from differences between assumed and actual experience (such as differences between actual and expected return on plan
assets). Actuarial losses in 2019 related to plan benefit obligations were primarily the result of decreases in discount rates. Actuarial gains
in 2018 related to plan benefit obligations were primarily the result of increases in discount `rates. Gains and losses are amortized over
the life expectancy of the plan participants for U.S. plans (26 years in 2020) and expected remaining service periods for most other plans
to the extent they exceed 10% of the higher of the market-related value or the projected benefit obligation for each respective plan.
Postretirement Benefit Plans
Comprehensive medical and group life benefits are provided for substantially all legacy BMS U.S. retirees electing to participate in
comprehensive medical and group life plans and to a lesser extent certain benefits for non-U.S. employees. The medical plan is contributory.
Contributions are adjusted periodically and vary by date of retirement. The life insurance plan is noncontributory. Plan assets consist
principally of fixed-income securities. Postretirement benefit plan obligations were $255 million and $253 million at December 31, 2019
and 2018, respectively, and the fair value of plan assets were $398 million and $331 million at December 31, 2019 and 2018, respectively.
The weighted-average discount rate used to determine benefit obligations was 2.9% and 3.9% at December 31, 2019 and 2018, respectively.
The net periodic benefit credits were not material.
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2019 Annual Report
Plan Assets
The fair value of pension and postretirement plan assets by asset category at December 31, 2019 and 2018 was as follows:
Dollars in Millions Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
Plan Assets
Equity securities $ 87 $ — $ — $ 87 $ 124 $ — $ — $ 124
Equity funds 4 544 — 548 2 475 — 477
Fixed income funds — 769 — 769 — 606 — 606
Corporate debt securities — 764 — 764 — 3,865 — 3,865
U.S. Treasury and agency securities — 168 — 168 — 553 — 553
Short-term investment funds — — — — — 55 — 55
Insurance contracts — — 128 128 — — 134 134
Cash and cash equivalents 24 — — 24 311 — — 311
Other — 111 33 144 — 105 19 124
Plan assets subject to leveling $ 115 $ 2,356 $ 161 $ 2,632 $ 437 $ 5,659 $ 153 $ 6,249
Plan assets measured at NAV as a practical expedient

Venture capital and limited partnerships $ 1 $ 121
Other 301 91
Total plan assets measured at NAV as a practical expedient 302 212
Net plan assets $ 2,934 $ 6,461
The investment valuation policies per investment class are as follows:
Level 1 inputs utilize unadjusted quoted prices in active markets accessible at the measurement date for identical assets or liabilities.
The fair value hierarchy provides the highest priority to Level 1 inputs. These instruments include equity securities, equity funds
and fixed income funds publicly traded on a national securities exchange, and cash and cash equivalents. Cash and cash equivalents
are highly liquid investments with original maturities of three months or less at the time of purchase and are recognized at cost,
which approximates fair value. Pending trade sales and purchases are included in cash and cash equivalents until final settlement.
Level 2 inputs utilize observable prices for similar instruments, quoted prices for identical or similar instruments in non-active
markets, and other observable inputs that can be corroborated by market data for substantially the full term of the assets or liabilities.
Equity funds, fixed income funds, and short-term investment funds classified as Level 2 within the fair value hierarchy are valued
at the NAV of their shares held at year end, which represents fair value. Corporate debt securities and U.S. Treasury and agency
securities classified as Level 2 within the fair value hierarchy are valued utilizing observable prices for similar instruments and
quoted prices for identical or similar instruments in markets that are not active.
Level 3 unobservable inputs are used when little or no market data is available. Insurance contracts are held by certain foreign
pension plans and are carried at contract value, which approximates the estimated fair value and is based on the fair value of the
underlying investment of the insurance company.
Essentially all venture capital and limited partnership investments were liquidated by the end of 2019. The remaining investments using
the practical expedient consist of multi-asset funds and are redeemable on a either a daily or weekly or monthly basis.
The investment strategy is to maximize return while maintaining an appropriate level of risk to provide sufficient liquidity for benefit
obligations and plan expenses. Individual plan investment allocations are determined by local fiduciary committees and the composition
of total assets for all pension plans at December 31, 2019 was broadly characterized as an allocation between equity securities (28%),
debt securities (63%) and other investments (9%).
The principal U.S. defined benefit pension plan was over-funded at termination. As a result, excess Plan assets of $424 million are reflected
as BMS assets as of December 31, 2019. These assets are primarily reported in long term restricted cash due to the election to contribute
these assets to the Bristol-Myers Squibb Savings and Investment Program, a qualified replacement plan. This election requires that these
assets be used to fund future annual Company contribution to the Bristol-Myers Squibb Savings and Investment Program.
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Contributions and Estimated Future Benefit Payments
Contributions to pension plans were $63 million in 2019, $71 million in 2018 and $396 million in 2017 and are not expected to be material
in 2020. Estimated annual future benefit payments for non-terminating plans (including lump sum payments) will be approximately $120
million in each of the next five years and in the subsequent five year period.
Savings Plans
The principal defined contribution plan is the Bristol-Myers Squibb Savings and Investment Program. The contributions are based on
employee contributions and the level of Company match. The expense attributed to defined contribution plans in the U.S. was
approximately $200 million in 2019, 2018 and 2017.
Note 18. EMPLOYEE STOCK BENEFIT PLANS
On May 1, 2012, the shareholders approved the 2012 Plan, which replaced the 2007 Stock Incentive Plan. The 2012 Plan provides for
109 million shares to be authorized for grants, plus any shares from outstanding awards under the 2007 Plan as of February 29, 2012 that
expire, are forfeited, canceled, or withheld to satisfy tax withholding obligations. As of December 31, 2019, 98 million shares were
available for award. Shares are issued from treasury stock to satisfy BMS's obligations under this Plan.
As part of the Celgene acquisition, BMS assumed the 2017 Stock Incentive Plan and the 2014 Equity Incentive Plan (referred together
with the BMS plans as the “Plans”). These plans provided for the granting of Options, Restricted Stock Units (“RSUs”), Performance
Share Units (“PSUs”) and other share-based and performance-based awards to former Celgene employees, officers and non-employee
directors. Additionally, the terms of these plans provided for accelerated vesting of awards upon a change in control followed by an
involuntary termination without cause. As at the acquisition date, 29 million shares were available for award under the Celgene Plans.
Outstanding Celgene equity awards were assumed by BMS and converted into BMS equity awards. The replacement BMS awards
generally have the same terms and conditions (including vesting) as the former Celgene awards for which they were exchanged. Shares
are issued from treasury stock to satisfy BMS's obligations under the Plans.
CVRs were also issued to the holders of vested and unexercised “in the money” Options that were outstanding at the acquisition date.
Celgene RSU holders and unvested “in the money” Options that were outstanding at the acquisition date, with awards vesting prior to
March 31, 2021 are also eligible to receive CVRs. Celgene RSU holders and unvested “in the money” Options that were outstanding at
the acquisition date with awards vesting after March 31, 2021 are eligible to receive a cash value of $9.00 per pre-converted Celgene
RSU and “in the money” Options if all CVR milestones are achieved.
Executive officers and key employees may be granted options to purchase common stock at no less than the market price on the date the
option is granted. Options generally become exercisable ratably over four years and have a maximum term of 10 years. The Plans provide
for the granting of stock appreciation rights whereby the grantee may surrender exercisable rights and receive common stock and/or cash
measured by the excess of the market price of the common stock over the option exercise price. We primarily utilize treasury shares to
satisfy the exercise of stock options.
RSUs may be granted to key employees, subject to restrictions as to continuous employment. Generally, vesting occurs ratably over a
three to four year period from grant date. A stock unit is a right to receive stock at the end of the specified vesting period but has no voting
rights.
Market share units (“MSUs”) are granted to executives. Vesting is conditioned upon continuous employment until the vesting date and
a payout factor of at least 60% of the share price on the award date. The payout factor is the share price on vesting date divided by share
price on award date, with a maximum of 200%. The share price used in the payout factor is calculated using an average of the closing
prices on the grant or vest date, and the nine trading days immediately preceding the grant or vest date. Vesting occurs ratably over four
years.
PSUs are granted to executives, have a three year cycle and are granted as a target number of units subject to adjustment. The number
of shares issued when PSUs vest is determined based on the achievement of performance goals and based on BMS's three-year total
shareholder return relative to a peer group of companies. Vesting is conditioned upon continuous employment and occurs on the third
anniversary of the grant date.
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2019 Annual Report
Stock-based compensation expense for awards ultimately expected to vest is recognized over the vesting period. Forfeitures are estimated
based on historical experience at the time of grant and revised in subsequent periods if actual forfeitures differ from those estimates.
Components of stock-based compensation benefits in the consolidated statement of earnings are as follows:
Cost of products sold $ 19 $ 15 $ 16
Marketing, selling and administrative 162 122 103
Research and development 115 84 80
Other (income)/expense, net 145 — —
Total stock-based compensation expense $ 441 $ 221 $ 199
Income tax benefit $ 87 $ 41 $ 59
The total stock-based compensation expense for the year ended December 31, 2019 includes $66 million related to Celgene post-
combination service period and $145 million of accelerated vesting of awards related to the Celgene acquisition. It also includes $10
million related to CVR obligation on unvested stock awards for the post combination service period. Refer to “—Note 4. Acquisitions,
Divestitures, Licensing and Other Arrangements” for more information related to the Celgene acquisition.
The replacement stock options granted to Celgene option holders on acquisition were issued consistent with the vesting conditions of the
replaced award. Replacement stock options have contractual terms of 10 years from the initial grant date. The majority of stock options
outstanding vest in one-fourth increments over a four year period, although certain awards cliff vest or have longer or shorter service
periods. Celgene option holders may elect to exercise options at any time during the option term. However, any shares so purchased
which have not vested as of the date of exercise shall be subject to forfeiture, which will lapse in accordance with the established vesting
time period. The fair value on the acquisition date attributable to post-combination service, adjusted for estimated forfeitures, is recognized
as expense on a straight-line basis over the remaining vesting period. BMS estimated the fair value of replacement options , using a Black-
Scholes Option pricing model, with the following assumptions:
Year Ended
December 31, 2019
Weighted average risk-free interest rate 1.59%
Expected volatility 25.7%
Weighted average expected term (years) 2.65
Expected dividend yield 2.89%
The risk free interest rate is based on rates available for U.S. Federal Reserve treasury constant maturities with a remaining term equal
to the options' expected life at the time of the replacement award. Expected volatility of replacement stock option awards is estimated
based on a 50/50 blend of implied volatility and five year historical volatility of BMS' publicly traded stocks. The expected term of an
employee share option is the period of time for which the option is expected to be outstanding and is based on historical and forecasted
exercise behavior. Dividend yield is estimated based on BMS' annual dividend rate at the time of award replacement.
The following table summarizes the stock compensation activity for the year ended December 31, 2019:
Stock Options(a) Restricted Stock Units Market Share Units Performance Share Units
Weighted-
Average Weighted- Weighted- Weighted-
Exercise Number of Average Number of Average Number of Average
Number of Price of Nonvested Grant-Date Nonvested Grant-Date Nonvested Grant-Date
Shares in Millions Options Shares Awards Fair Value Awards Fair Value Awards Fair Value
Balance at January 1, 2019 1.7 $ 17.51 5.0 $ 58.83 1.5 $ 66.76 2.8 $ 63.28
Replacement Awards 105.3 47.77 32.4 56.37 — — — —
Granted — — 3.9 47.16 0.8 51.52 1.3 49.99
Released/Exercised (5.5) 32.22 (5.9) 57.24 (0.5) 65.76 (0.8) 64.87
Adjustments for actual payout — — — — — — 0.1 —
Forfeited/Canceled (0.3) 54.98 (0.7) 54.43 (0.3) 59.12 (0.5) 56.71
Balance at December 31, 2019 101.2 48.08 34.7 55.58 1.6 59.25 3.0 57.46
Expected to vest 32.3 55.66 1.4 59.45 3.6 58.27

(a) At December 31, 2019, substantially all of the 22.6 million unvested stock options with a weighted-average exercise price of $53.10 are expected to vest.
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Restricted Market Performance

Dollars in Millions Stock Options Stock Units Share Units Share Units
Unrecognized compensation cost $ 121 $ 918 $ 39 $ 78
Expected weighted-average period in years of compensation cost
to be recognized 2.0 2.1 2.7 1.6
Amounts in Millions, except per share data 2019 2018 2017

Weighted-average grant date fair value (per share):
Stock options - replacement awards $ 15.00 $ — $ —
Restricted stock units - replacement awards 56.37 — —
Restricted stock units 47.16 61.40 54.39
Market share units 51.52 72.33 60.14
Performance share units 49.99 67.60 57.91
Fair value of awards that vested:

Restricted stock units - replacement awards $ 233 $ — $ —
Restricted stock units 105 98 91
Market share units 30 40 33
Performance share units 53 103 84
Total intrinsic value of stock options exercised 148 89 84
The fair value of RSUs, MSUs and PSUs approximates the closing trading price of BMS's common stock on the grant date after adjusting
for the units not eligible for accrued dividends. In addition, the fair value of MSUs and PSUs considers the probability of satisfying the
payout factor and total shareholder return, respectively.
The fair value of the replacement RSUs approximates the closing trading price of BMS' common stock on the date of acquisition after
adjusting for the units not eligible for accrued dividends. The fair value on the acquisition date attributable to post-combination service,
adjusted for estimated forfeitures, is recognized as expense on a straight-line basis over the remaining vesting period.
The following table summarizes significant outstanding and exercisable options at December 31, 2019:
Weighted-Average Weighted-Average
Number of Options Remaining Contractual Exercise Price Per Aggregate Intrinsic
Range of Exercise Prices (in millions) Life (in years) Share Value (in millions)
$10 - $40 27.2 2.7 $ 24.81 $ 1,071
$40 - $55 31.3 5.7 48.69 485
$55 - $65 30.4 5.0 59.48 143
$65+ 12.3 5.7 69.89 —
Outstanding 101.2 4.7 $ 48.08 $ 1,700
Exercisable 78.6 3.9 $ 46.65 $ 1,430
The aggregate intrinsic value in the preceding table represents the total pretax intrinsic value, based on the closing stock price of $64.19
on December 31, 2019.
Note 19. LEGAL PROCEEDINGS AND CONTINGENCIES
BMS and certain of its subsidiaries are involved in various lawsuits, claims, government investigations and other legal proceedings that
arise in the ordinary course of business. These claims or proceedings can involve various types of parties, including governments,
competitors, customers, suppliers, service providers, licensees, employees, or shareholders, among others. These matters may involve
patent infringement, antitrust, securities, pricing, sales and marketing practices, environmental, commercial, contractual rights, licensing
obligations, health and safety matters, consumer fraud, employment matters, product liability and insurance coverage, among others. The
resolution of these matters often develops over a long period of time and expectations can change as a result of new findings, rulings,
appeals or settlement arrangements. Legal proceedings that are significant or that BMS believes could become significant or material are
described below.
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2019 Annual Report
While BMS does not believe that any of these matters, except as otherwise specifically noted below, will have a material adverse effect
on its financial position or liquidity as BMS believes it has substantial defenses in the matters, the outcomes of BMS’s legal proceedings
and other contingencies are inherently unpredictable and subject to significant uncertainties. There can be no assurance that there will
not be an increase in the scope of one or more of these pending matters or any other or future lawsuits, claims, government investigations
or other legal proceedings will not be material to BMS’s financial position, results of operations or cash flows for a particular period.
Furthermore, failure to enforce BMS’s patent rights would likely result in substantial decreases in the respective product revenues from
generic competition.
Unless otherwise noted, BMS is unable to assess the outcome of the respective matters nor is it able estimate the possible loss or range
of losses that could potentially result for such matters. Contingency accruals are recognized when it is probable that a liability will be
incurred and the amount of the related loss can be reasonably estimated. Developments in legal proceedings and other matters that could
cause changes in the amounts previously accrued are evaluated each reporting period. For a discussion of BMS’s tax contingencies, see
“—Note 7. Income Taxes”.
INTELLECTUAL PROPERTY
Abraxane - U.S.
In November 2018, Celgene received a Notice Letter from HBT Labs, Inc. (“HBT”) notifying Celgene that it had filed a 505(b)(2) NDA
containing paragraph IV certifications against certain patents that are listed in the FDA Orange Book for Abraxane. HBT is seeking to
market a generic version of Abraxane in the U.S. In response, Celgene initiated a patent infringement action under the Drug Price
Competition and Patent Term Restoration Act, known as the “Hatch-Waxman Act,” against HBT in the U.S. District Court for the District
of Delaware. HBT filed an answer and counterclaims asserting that each of the patents is invalid and/or not infringed. In February 2020,
Celgene entered into a settlement with HBT to terminate this patent litigation. As part of the settlement, Celgene agreed to provide HBT
with a license to its patents required to manufacture and sell a generic paclitaxel protein-bound particles for injectable suspension product
in the U.S. beginning on September 27, 2022.
In June 2019, Celgene also received a Notice Letter from Sun Pharma Advanced Research Company, Ltd. (“SPARC”) notifying Celgene
that it had filed a 505(b)(2) NDA containing paragraph IV certifications against certain patents that are listed in the FDA Orange Book
for Abraxane. SPARC is seeking to market a paclitaxel injection concentrate suspension product in the U.S. In response, Celgene initiated
a patent infringement action under the Hatch-Waxman Act against SPARC in the U.S. District Court for the District of New Jersey in
August 2019. In December 2019, Celgene voluntarily dismissed this action without prejudice.
Anti-PD-1 Antibody Litigation

In September 2015, Dana-Farber Cancer Institute (“Dana-Farber”) filed a complaint in the U.S. District Court for the District of
Massachusetts seeking to correct the inventorship on up to six related U.S. patents directed to methods of treating cancer using PD-1 and
PD-L1 antibodies. Specifically, Dana-Farber is seeking to add two scientists as inventors to these patents. In October 2017, Pfizer was
allowed to intervene in this case alleging that one of the scientists identified by Dana-Farber was employed by a company eventually
acquired by Pfizer during the relevant period. In February 2019, BMS settled the lawsuit with Pfizer. A bench trial in the lawsuit with
Dana-Farber took place in February 2019. In May 2019, the Court issued an opinion ruling that the two scientists should be added as
inventors to the patents. The decision was appealed to the Federal Circuit. In June 2019, Dana Farber filed a new lawsuit in the District
of Massachusetts against BMS seeking damages as a result of the Court’s decision adding the scientists as inventors. This case has been
stayed pending the outcome of BMS’s appeal to the Federal Circuit.
CAR T Litigation
On October 18, 2017, the day on which the FDA approved Kite Pharma, Inc.’s (“Kite”) Yescarta* product, Juno, along with Sloan
Kettering Institute for Cancer Research (“SKI”), filed a complaint against Kite in the U.S. District Court for the Central District of
California. The complaint alleged that Yescarta* infringes certain claims of U.S. Patent No. 7,446,190 (“the ’190 Patent”) concerning
CAR T cell technologies. Kite filed an answer and counterclaims asserting non-infringement and invalidity of the ’190 Patent. In December
2019, following an eight-day trial, the jury rejected Kite’s defenses, finding that Kite willfully infringed the ’190 Patent and awarding to
Juno and SKI a reasonable royalty consisting of a $585 million upfront payment and a 27.6% running royalty on Kite’s sales of Yescarta*
through the expiration of the ’190 Patent in August 2024. Briefing on post-trial motions is scheduled to be completed by February 24,
2020.
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Eliquis - U.S.
In 2017, BMS received Notice Letters from twenty-five generic companies notifying BMS that they had filed aNDAs containing paragraph
IV certifications seeking approval of generic versions of Eliquis. As a result, two Eliquis patents listed in the FDA Orange Book are being
challenged: the composition of matter patent claiming apixaban specifically and a formulation patent. In response, BMS, along with its
partner Pfizer, initiated patent infringement actions under the Hatch-Waxman Act against all generic filers in the U.S. District Court for
the District of Delaware in April 2017. In August 2017, the U.S. Patent and Trademark Office granted patent term restoration to the
composition of matter patent, thereby restoring the term of the Eliquis composition of matter patent, which is BMS’s basis for projected
LOE, from February 2023 to November 2026. BMS settled with a number of aNDA filers. These settlements do not affect BMS’s projected
LOE for Eliquis. A trial with the remaining aNDA filers took place in late 2019. Post-trial briefing is expected to be complete by the end
of February 2020 and a decision is expected some time after.
Plavix* - Australia
Sanofi was notified that, in August 2007, GenRx Proprietary Limited (“GenRx”) obtained regulatory approval of an application for
clopidogrel bisulfate 75mg tablets in Australia. GenRx, formerly a subsidiary of Apotex Inc., subsequently changed its name to Apotex
(“GenRx-Apotex”). In August 2007, GenRx-Apotex filed an application in the Federal Court of Australia seeking revocation of Sanofi’s
Australian Patent No. 597784 (Case No. NSD 1639 of 2007). Sanofi filed counterclaims of infringement and sought an injunction. On
September 21, 2007, the Federal Court of Australia granted Sanofi’s injunction. A subsidiary of BMS was subsequently added as a party
to the proceedings. In February 2008, a second company, Spirit Pharmaceuticals Pty. Ltd., also filed a revocation suit against the same
patent. This case was consolidated with the GenRx-Apotex case. On August 12, 2008, the Federal Court of Australia held that claims of
Patent No. 597784 covering clopidogrel bisulfate, hydrochloride, hydrobromide, and taurocholate salts were valid. The Federal Court
also held that the process claims, pharmaceutical composition claims, and claim directed to clopidogrel and its pharmaceutically acceptable
salts were invalid. BMS and Sanofi filed notices of appeal in the Full Court of the Federal Court of Australia (“Full Court”) appealing
the holding of invalidity of the claim covering clopidogrel and its pharmaceutically acceptable salts, process claims, and pharmaceutical
composition claims. GenRx-Apotex appealed the holding of validity of the clopidogrel bisulfate, hydrochloride, hydrobromide, and
taurocholate claims. On September 29, 2009, the Full Court held all of the claims of Patent No. 597784 invalid. In March 2010, the High
Court of Australia denied a request by BMS and Sanofi to hear an appeal of the Full Court decision. The case was remanded to the Federal
Court for further proceedings related to damages sought by GenRx-Apotex. BMS and GenRx-Apotex settled, and the GenRx-Apotex
case was dismissed. The Australian government intervened in this matter seeking maximum damages up to 449 million AUD ($311
million), plus interest, which would be split between BMS and Sanofi, for alleged losses experienced for paying a higher price for branded
Plavix* during the period when the injunction was in place. BMS and Sanofi dispute that the Australian government is entitled to any
damages. A trial was concluded in September 2017, and BMS is expecting a decision in 2020.
Pomalyst - U.S.
Celgene has received Notice letters on behalf of Teva Pharmaceuticals USA, Inc.; Apotex Inc. (“Apotex”) and Apotex Corp.; Hetero
Labs Limited, Hetero Labs Limited Unit-V, Hetero Drugs Limited, Hetero USA, Inc. (together, “Hetero”); Aurobindo Pharma Ltd.; Mylan
Pharmaceuticals Inc.; and Breckenridge Pharmaceutical, Inc. notifying Celgene that they had filed aNDAs containing paragraph IV
certifications seeking approval to market generic versions of Pomalyst in the U.S. In response, Celgene filed patent infringement actions
against the companies in the U.S. District Court for the District of New Jersey asserting certain FDA Orange Book-listed patents as well
as other litigations asserting other non-FDA Orange Book-listed patents, and the companies filed answers, counterclaims, and/or
declaratory judgment actions alleging that the asserted patents are invalid, unenforceable, and/or not infringed. These litigations were
subsequently consolidated and a trial is scheduled from July 27 through August 14, 2020.
Celgene subsequently filed additional patent infringement actions in the U.S. District Court for the District of New Jersey against the
companies asserting certain patents not listed in the FDA Orange Book that cover polymorphic forms of pomalidomide, and the companies
filed answer and/or counterclaims alleging that each of these patents is invalid and/or not infringed. In these actions, the Court has ordered
that the parties be ready for trial by April 15, 2021.
In June 2019, Celgene received a Notice Letter from Dr. Reddy’s Laboratories, Ltd. and Dr. Reddy’s Laboratories, Inc. (together, “DRL”)
notifying Celgene that they had filed aNDAs containing paragraph IV certifications seeking approval to market generic versions of
Pomalyst. In response, Celgene initiated a patent infringement action against DRL in the U.S. District Court for the District of New Jersey
asserting certain FDA Orange Book-listed patents, and DRL filed an answer and counterclaims alleging that each of the patents is invalid
and/or not infringed. No trial date has been set.
Revlimid - Canada
Celgene received two Notices of Allegation in July 2018 from Natco Pharma (Canada) Inc. (“Natco Canada”) notifying Celgene of the
filing of Natco Canada’s two separate aNDAs with Canada’s Minister of Health with respect to certain of Celgene’s Canadian letters
patents. Natco Canada is seeking to market a generic version of Revlimid in Canada. In response, Celgene initiated patent infringement
actions in the Federal Court of Canada and sought an injunction. Natco alleges that the asserted patents are invalid and/or not infringed.
Trial is scheduled to start on March 30, 2020.
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2019 Annual Report
Celgene also received four Notices of Allegation in October 2018 from Apotex notifying Celgene of the filing of Apotex’s aNDA with
Canada’s Minister of Health with respect to certain of Celgene’s Canadian letters patents. Apotex is seeking to market a generic version
of Revlimid in Canada. In response, Celgene initiated patent infringement actions in the Federal Court of Canada and sought an injunction.
Celgene entered into a confidential settlement agreement with Apotex concerning this case and these actions were discontinued in
November 2019.
Revlimid - U.S.
Celgene has received Notice Letters on behalf of DRL; Zydus Pharmaceuticals (USA) Inc.; Cipla Ltd., India; Apotex; Sun Pharma Global
FZE, Sun Pharma Global Inc., Sun Pharmaceutical Industries, Inc., and Sun Pharmaceutical Industries Limited; Hetero; Mylan
Pharmaceuticals Inc., Mylan Inc., and Mylan N.V.; and Aurobindo Pharma Limited, Eugia Pharma Specialities Limited, Aurobindo
Pharma USA, Inc., and Aurolife Pharma LLC notifying Celgene that they had filed aNDAs containing paragraph IV certifications seeking
approval to market generic versions of Revlimid in the U.S. In response, Celgene filed patent infringement actions against the companies
in the U.S. District Court for the District of New Jersey asserting certain FDA Orange Book-listed patents as well as other litigations
asserting other non-FDA Orange Book-listed patents and the companies filed answers and/or counterclaims alleging that the asserted
patents are invalid, unenforceable, and/or not infringed. These litigations have different schedules and no trial date has been set in any
of the litigations. The case with the earliest potential trial date is against DRL with respect to certain FDA Orange Book-listed patents
and a final pretrial conference in that case has been set for June 1, 2020.
Sprycel - Europe
In January 2016, the Opposition Division of the EPO revoked European Patent No. 1169038 (“the ’038 patent”) covering dasatinib, the
active ingredient in Sprycel, a decision which was upheld by the EPO Board of Appeal in February 2017. Orphan drug exclusivity and
data exclusivity for Sprycel in the EU expired in November 2016. The EPO Board of Appeal’s decision does not affect the validity of
BMS’s other Sprycel patents within and outside Europe, including different patents that cover the monohydrate form of dasatinib and the
use of dasatinib to treat CML. Additionally, in February 2017, the EPO Board of Appeal reversed and remanded an invalidity decision
on European Patent No. 1610780 and its claim to the use of dasatinib to treat CML, which the EPO’s Opposition Division had revoked
in October 2012. In December 2018, the EPO’s Opposition Division upheld the validity of the patent directed to the use of dasatinib to
treat CML, which expires in 2024. A number of generic companies have launched a generic dasatinib product throughout Europe for the
ALL indication.
Sprycel - U.S.
In August 2019, BMS received a Notice Letter from Dr. Reddy’s Laboratories, Inc. notifying BMS that it had filed an aNDA containing
paragraph IV certifications seeking approval of a generic version of Sprycel in the U.S. and challenging two FDA Orange Book-listed
monohydrate form patents expiring in 2025 and 2026. In response, BMS initiated a patent infringement lawsuit under the Hatch-Waxman
Act in the U.S. District Court for the District of New Jersey. No trial date has been set. In 2013, BMS entered into a settlement agreement
with Apotex regarding a patent infringement suit covering the monohydrate form of dasatinib whereby Apotex can launch its generic
dasatinib monohydrate aNDA product in September 2024 or earlier in certain circumstances.
PRICING, SALES AND PROMOTIONAL PRACTICES LITIGATION
Plavix* State Attorneys General Lawsuits

BMS and certain Sanofi entities are defendants in consumer protection and/or false advertising actions brought by the attorneys general
of Hawaii and New Mexico relating to the sales and promotion of Plavix*. The Hawaii matter is currently scheduled for trial in May
2020.
PRODUCT LIABILITY LITIGATION
BMS is a party to various product liability lawsuits. Plaintiffs in these cases seek damages and other relief on various grounds for alleged
personal injury and economic loss. As previously disclosed, in addition to lawsuits, BMS also faces unfiled claims involving its products.
Abilify*
BMS and Otsuka are co-defendants in product liability litigation related to Abilify*. Plaintiffs allege Abilify* caused them to engage in
compulsive gambling and other impulse control disorders. There have been over 2,000 cases filed in state and federal courts and additional
cases are pending in Canada. The Judicial Panel on Multidistrict Litigation consolidated the federal court cases for pretrial purposes in
the U.S. District Court for the Northern District of Florida. In February 2019, BMS and Otsuka entered into a master settlement agreement
establishing a proposed settlement program to resolve all Abilify* compulsivity claims filed as of January 28, 2019 in the MDL as well
as various state courts, including California and New Jersey. Approximately 175 cases remain pending on behalf of 280 plaintiffs who
chose not to participate in the settlement program or filed their claims after the settlement cut-off date.
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Byetta*
Amylin, a former subsidiary of BMS, and Lilly are co-defendants in product liability litigation related to Byetta*. To date, there are
approximately 580 separate lawsuits pending on behalf of approximately 2,225 active plaintiffs (including pending settlements), which
include injury plaintiffs as well as claims by spouses and/or other beneficiaries, in various courts in the U.S. The majority of these cases
have been brought by individuals who allege personal injury sustained after using Byetta*, primarily pancreatic cancer, and, in some
cases, claiming alleged wrongful death. The majority of cases are pending in federal court in San Diego in an MDL or in a coordinated
proceeding in California Superior Court in Los Angeles (“JCCP”). In November 2015, the defendants’ motion for summary judgment
based on federal preemption was granted in both the MDL and the JCCP. In November 2017, the Ninth Circuit reversed the MDL summary
judgment order and remanded the case to the MDL. In November 2018, the California Court of Appeal reversed the state court summary
judgment order and remanded those cases to the JCCP for further proceedings. Amylin had product liability insurance covering a substantial
number of claims involving Byetta* (which has been exhausted). As part of BMS’s global diabetes business divestiture, BMS sold Byetta*
to AstraZeneca in February 2014 and any additional liability to Amylin with respect to Byetta* is expected to be shared with AstraZeneca.
Onglyza*
BMS and AstraZeneca are co-defendants in product liability litigation related to Onglyza*. Plaintiffs assert claims, including claims for
wrongful death, as a result of heart failure or other cardiovascular injuries they allege were caused by their use of Onglyza*. As of January
2020, claims are pending in state and federal court on behalf of approximately 290 individuals who allege they ingested the product and
suffered an injury. In February 2018, the Judicial Panel on Multidistrict Litigation ordered all federal cases to be transferred to an MDL
in the U.S. District Court for the Eastern District of Kentucky. A significant majority of the claims are pending in the MDL. As part of
BMS’s global diabetes business divestiture, BMS sold Onglyza* to AstraZeneca in February 2014 and any potential liability with respect
to Onglyza* is expected to be shared with AstraZeneca.
SECURITIES LITIGATION
BMS Securities Class Action

Since February 2018, two separate putative class action complaints were filed in the U.S. District for the Northern District of California
and in the U.S. District Court for the Southern District of New York against BMS, BMS’s Chief Executive Officer, Giovanni Caforio,
BMS’s Chief Financial Officer at the time, Charles A. Bancroft and certain former and current executives of BMS. The case in California
has been voluntarily dismissed. The remaining complaint alleges violations of securities laws for BMS’s disclosures related to the
CheckMate-026 clinical trial in lung cancer. In September 2019, the Court granted BMS’s motion to dismiss, but allowed the plaintiffs
leave to file an amended complaint. In October 2019, the plaintiffs filed an amended complaint. BMS has moved to dismiss the amended
complaint.
Celgene Securities Class Action

Beginning in March 2018, two putative class actions were filed against Celgene and certain of its officers in the U.S. District Court for
the District of New Jersey (the “Celgene Securities Class Action”). The complaints allege that the defendants violated federal securities
laws by making misstatements and/or omissions concerning (1) trials of GED-0301, (2) Celgene’s 2020 outlook and projected sales of
Otezla, and (3) the new drug application for Ozanimod. The Court consolidated the two actions and appointed a lead plaintiff, lead counsel,
and co-liaison counsel for the putative class. In February 2019, the defendants filed a motion to dismiss plaintiff’s amended complaint
in full. In December 2019, the Court denied the motion to dismiss in part and granted the motion to dismiss in part (including all claims
arising from alleged misstatements regarding GED-0301). Although the Court gave the plaintiff leave to re-plead the dismissed claims,
it elected not to do so, and the dismissed claims are now dismissed with prejudice. No trial date has been set for the claims that survived
the Court’s order.
Gerold Derivative Action

On October 11, 2018, Sam Baran Gerold filed a shareholder derivative complaint against certain members of Celgene’s board of directors
in the Superior Court of New Jersey. The complaint alleges that (i) the defendants breached certain fiduciary duties related to, among
other things, its actions with respect to clinical trials of GED-0301, Otezla, and the new drug application for Ozanimod and (ii) because
of the breach, the defendants caused Celgene to waste its corporate assets and the defendants were unjustly enriched. In October 2018,
the defendants removed this matter to the U.S. District Court for the District of New Jersey. On January 3, 2020, the parties entered into
a stipulation and proposed order voluntarily dismissing this matter without prejudice, which the Court entered on January 6, 2020.
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2019 Annual Report
Saratoga Derivative Action

On July 12, 2018, Saratoga Advantage Trust Health and Biotechnology Portfolio (“Saratoga”) filed a shareholder derivative complaint
against certain members of Celgene’s board of directors in the U.S. District Court for the District of New Jersey. The complaint alleges
that (i) certain defendants made misrepresentations and omissions of material fact concerning, among other things, the clinical trials of
GED-0301, the sales of Otezla, Celgene’s 2017 and 2020 fiscal guidance, and the new drug application for Ozanimod and (ii) all defendants
failed to adequately supervise Celgene with regard to clinical trials of GED-0301, sales of Otezla, Celgene’s 2017 and 2020 fiscal guidance,
the new drug application for Ozanimod, and the promotion and marketing of Revlimid. Saratoga has agreed to stay the defendants’
obligation to answer or otherwise respond to the allegations in the complaint in deference to the Celgene Securities Class Action. In
August 2018, the Court entered an order staying the proceedings until the disposition of the first motion to dismiss in the Celgene Securities
Class Action. The order also administratively terminated the proceedings.
OTHER LITIGATION
Average Manufacturer Price Litigation

BMS is a defendant in a qui tam (whistleblower) lawsuit in the U.S. District Court for the Eastern District of Pennsylvania, in which the
U.S. Government declined to intervene. The complaint alleges that BMS inaccurately reported its average manufacturer prices to the
Centers for Medicare and Medicaid Services to lower what it owed. Similar claims have been filed against other companies. In January
2020, BMS reached an agreement in principle to resolve this matter subject to the negotiation of a definitive settlement agreement and
other contingencies. BMS cannot provide assurances that its efforts to reach a final settlement will be successful.
HIV Medication Antitrust Lawsuits

BMS and several other manufacturers of HIV medications are defendants in related lawsuits brought by indirect purchasers in 2019 and
direct purchasers in 2020 in the U.S. District Court for the Northern District of California, and by indirect purchasers in 2020 in the U.S.
District Court for the Southern District of Florida, in each case alleging that the defendants’ agreements to develop and sell fixed-dose
combination products for the treatment of HIV, including Atripla* and Evotaz, violate antitrust laws. The indirect purchaser complaint
filed in Florida has been transferred and consolidated with the matters pending in the Northern District of California. BMS has moved
or intends to move to dismiss each of the complaints.
Humana Litigations
On May 16, 2018, Humana, Inc. (“Humana”) filed a lawsuit against Celgene in the Pike County Circuit Court of the Commonwealth of
Kentucky. Humana’s complaint alleges Celgene engaged in unlawful off-label marketing in connection with sales of Thalomid and
Revlimid and asserts claims against Celgene for fraud, breach of contract, negligent misrepresentation, unjust enrichment and violations
of New Jersey’s Racketeer Influenced and Corrupt Organizations Act. The complaint seeks, among other things, treble and punitive
damages, injunctive relief and attorneys’ fees and costs. In April 2019, Celgene filed a motion to dismiss Humana’s complaint, which
the Court denied in January 2020. No trial date has been set.
On March 1, 2019, Humana filed a separate lawsuit against Celgene in the U.S. District Court for the District of New Jersey. Humana’s
complaint alleges that Celgene violated various antitrust, consumer protection, and unfair competition laws to delay or prevent generic
competition for Thalomid and Revlimid brand drugs, including (a) allegedly refusing to sell samples of products to generic manufacturers
for purposes of bioequivalence testing intended to be included in aNDAs for approval to market generic versions of these products; (b)
allegedly bringing unjustified patent infringement lawsuits, procuring invalid patents, and/or entering into anticompetitive patent
settlements; (c) allegedly securing an exclusive supply contract for supply of thalidomide active pharmaceutical ingredient. The complaint
purports to assert claims on behalf of Humana and its subsidiaries in several capacities, including as a direct purchaser and as an indirect
purchaser, and seeks, among other things, treble and punitive damages, injunctive relief and attorneys’ fees and costs. Celgene filed a
motion to dismiss Humana’s complaint, and the Court has stayed discovery pending adjudication of that motion. No trial date has been
set.
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Thalomid and Revlimid Antitrust Litigation

Beginning in November 2014, certain putative class action lawsuits were filed against Celgene in the U.S. District Court for the District
of New Jersey alleging that Celgene violated various antitrust, consumer protection, and unfair competition laws by (a) allegedly securing
an exclusive supply contract for the alleged purpose of preventing a generic manufacturer from securing its own supply of thalidomide
active pharmaceutical ingredient, (b) allegedly refusing to sell samples of Thalomid and Revlimid brand drugs to various generic
manufacturers for the alleged purpose of bioequivalence testing necessary for aNDAs to be submitted to the FDA for approval to market
generic versions of these products, (c) allegedly bringing unjustified patent infringement lawsuits in order to allegedly delay approval
for proposed generic versions of Thalomid and Revlimid, and/or (d) allegedly entering into settlements of patent infringement lawsuits
with certain generic manufacturers that allegedly have had anticompetitive effects. The plaintiffs, on behalf of themselves and putative
classes of third-party payers, are seeking injunctive relief and damages. The various lawsuits were consolidated into a master action for
all purposes. In October 2017, the plaintiffs filed a motion for certification of two damages classes under the laws of thirteen states and
the District of Columbia and a nationwide injunction class. Celgene filed an opposition to the plaintiffs’ motion and a motion for judgment
on the pleadings dismissing all state law claims where the plaintiffs no longer seek to represent a class. In October 2018, the Court denied
the plaintiffs’ motion for class certification and Celgene’s motion for judgment on the pleadings. In December 2018, the plaintiffs filed
a new motion for class certification, which Celgene opposed. In July 2019, the parties reached a settlement under which all the putative
class plaintiff claims would be dismissed with prejudice. In December 2019, after certain third-party payors who were members of the
settlement class refused to release their potential claims and participate in the settlement, Celgene exercised its right to terminate the
settlement agreement. No trial date has been set.
GOVERNMENT INVESTIGATIONS
Like other pharmaceutical companies, BMS and certain of its subsidiaries are subject to extensive regulation by national, state and local
authorities in the U.S. and other countries in which BMS operates. As a result, BMS, from time to time, is subject to various governmental
and regulatory inquiries and investigations as well as threatened legal actions and proceedings. It is possible that criminal charges,
substantial fines and/or civil penalties, could result from government or regulatory investigations.
ENVIRONMENTAL PROCEEDINGS
As previously reported, BMS is a party to several environmental proceedings and other matters, and is responsible under various state,
federal and foreign laws, including CERCLA, for certain costs of investigating and/or remediating contamination resulting from past
industrial activity at BMS’s current or former sites or at waste disposal or reprocessing facilities operated by third parties.
CERCLA Matters
With respect to CERCLA matters for which BMS is responsible under various state, federal and foreign laws, BMS typically estimates
potential costs based on information obtained from the U.S. Environmental Protection Agency, or counterpart state or foreign agency
and/or studies prepared by independent consultants, including the total estimated costs for the site and the expected cost-sharing, if any,
with other “potentially responsible parties,” and BMS accrues liabilities when they are probable and reasonably estimable. BMS estimated
its share of future costs for these sites to be $68.6 million at December 31, 2019, which represents the sum of best estimates or, where
no best estimate can reasonably be made, estimates of the minimal probable amount among a range of such costs (without taking into
account any potential recoveries from other parties). The amount includes the estimated costs for any additional probable loss associated
with the previously disclosed North Brunswick Township High School Remediation Site.
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2019 Annual Report
Note 20. SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

Dollars in Millions, except per share data First Quarter Second Quarter Third Quarter Fourth Quarter(d) Year(d)
2019
Total Revenues $ 5,920 $ 6,273 $ 6,007 $ 7,945 $ 26,145
Gross Margin 4,096 4,301 4,217 5,453 18,067
Net Earnings/(Loss) 1,715 1,439 1,366 (1,060) 3,460
Net Earnings/(Loss) Attributable to:
Noncontrolling Interest 5 7 13 (4) 21
BMS 1,710 1,432 1,353 (1,056) 3,439
Earnings/(Loss) per Common Share - Basic(a) $ 1.05 $ 0.88 $ 0.83 $ (0.55) $ 2.02
Earnings/(Loss) per Common Share - Diluted(a) 1.04 0.87 0.83 (0.55) 2.01
Cash dividends declared per common share $ 0.41 $ 0.41 $ 0.41 $ 0.45 $ 1.68
Cash and cash equivalents $ 7,335 $ 28,404 $ 30,489 $ 12,346 $ 12,346

Marketable debt securities(b) 2,662 1,947 2,978 3,814 3,814
Total Assets 34,834 55,163 57,433 129,944 129,944
Long-term debt(c) 5,635 24,433 24,390 46,150 46,150
Equity 15,317 16,151 17,754 51,698 51,698
Dollars in Millions, except per share data First Quarter Second Quarter Third Quarter Fourth Quarter Year
2018
Total Revenues $ 5,193 $ 5,704 $ 5,691 $ 5,973 $ 22,561
Gross Margin 3,629 4,099 4,063 4,303 16,094
Net Earnings 1,495 382 1,912 1,158 4,947
Noncontrolling Interest 9 9 11 (2) 27
BMS 1,486 373 1,901 1,160 4,920
Earnings per Common Share - Basic(a) $ 0.91 $ 0.23 $ 1.16 $ 0.71 $ 3.01
Earnings per Common Share - Diluted(a) 0.91 0.23 1.16 0.71 3.01

Marketable debt securities(b) 3,548 3,057 3,298 3,623 3,623
Total Assets 33,083 32,641 33,734 34,986 34,986
Long-term debt(c) 5,775 5,671 5,687 6,895 6,895
Equity 12,906 12,418 13,750 14,127 14,127
(a) Earnings per share for the quarters may not add to the amounts for the year, as each period is computed on a discrete basis.
(b) Marketable debt securities includes current and non-current assets.
(c) Long-term debt includes the current portion.
(d) Commencing on November 20, 2019, Celgene's operations are included in our consolidated financial statements. Refer to “—Note 4. Acquisitions, Divestitures,
Licensing and Other Arrangements” for additional information.
77
The following specified items affected the comparability of results in 2019 and 2018:
2019
Dollars in Millions First Quarter Second Quarter Third Quarter Fourth Quarter Year
Inventory purchase price accounting adjustments $ — $ — $ — $ 660 $ 660
Employee compensation charges — — — 1 1
Site exit and other costs 12 139 22 24 197
Cost of products sold 12 139 22 685 858

Site exit and other costs 1 — — 8 9
Marketing, selling and administrative 1 — — 35 36
License and asset acquisition charges — 25 — — 25

IPRD impairments 32 — — — 32
Research and development 51 44 20 142 257
Amortization of acquired intangible assets — — — 1,062 1,062
Interest expense — 83 166 73 322

Pension and postretirement 49 44 1,545 (3) 1,635
Royalties and licensing income — — (9) (15) (24)
Divestiture (gains)/losses — 8 (1,179) 3 (1,168)
Acquisition expenses 165 303 7 182 657
Contingent value rights — — — 523 523
Investment income — (54) (99) (44) (197)
Integration expenses 22 106 96 191 415
Provision for restructuring 12 10 10 269 301
Equity investment (gains)/losses (175) (71) 261 (294) (279)
Litigation and other settlements — — — 75 75
Other — — — 2 2
Other (income)/expense, net 73 429 798 962 2,262
Increase to pretax income 137 612 840 2,886 4,475
Income taxes on items above (43) (105) (275) (264) (687)

Income taxes attributed to Otezla* divestiture — — — 808 808
Income taxes (43) (105) (275) 544 121
Increase to net earnings $ 94 $ 507 $ 565 $ 3,430 $ 4,596
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2019 Annual Report
2018
Dollars in Millions First Quarter Second Quarter Third Quarter Fourth Quarter Year
Site exit and other costs $ 13 $ 14 $ 13 $ 18 $ 58
Cost of products sold 13 14 13 18 58
Marketing, selling and administrative 1 — — 1 2
License and asset acquisition charges 60 1,075 — — 1,135

Research and development 80 1,094 18 22 1,214
Pension and postretirement 31 37 27 26 121

Royalties and licensing income (50) (25) — — (75)
Divestiture gains (43) (25) (108) (1) (177)
Provision for restructuring 20 37 45 29 131
Equity investment (gains)/losses (15) 356 (97) 268 512
Litigation and other settlements — — — 70 70
Intangible asset impairment 64 — — — 64
Other (income)/expense, net 7 380 (133) 392 646
Increase/(decrease) to pretax income 101 1,488 (102) 433 1,920
Income taxes on items above (8) (218) 1 (43) (268)

Income taxes attributed to U.S. tax reform (32) 3 (20) (7) (56)
Income taxes (40) (215) (19) (50) (324)
Increase/(decrease) to net earnings $ 61 $ 1,273 $ (121) $ 383 $ 1,596
79
REPORTS OF MANAGEMENT
Management’s Responsibility for Financial Statements
Management is responsible for the preparation and integrity of the financial information presented in this Annual Report. The
accompanying consolidated financial statements have been prepared in conformity with United States generally accepted accounting
principles, applying certain estimates and judgments as required. In management’s opinion, the consolidated financial statements present
fairly the Company’s financial position, results of operations and cash flows.
The Audit Committee of the Board of Directors meets regularly with the internal auditors, Deloitte & Touche LLP (D&T), the Company’s
independent registered accounting firm, and management to review accounting, internal control structure and financial reporting matters.
The internal auditors and D&T have full and free access to the Audit Committee. As set forth in the Company’s Standard of Business
Conduct and Ethics, the Company is firmly committed to adhering to the highest standards of moral and ethical behavior in all of its
business activities.
Management’s Report on Internal Control Over Financial Reporting
Management is responsible for establishing and maintaining adequate internal control over financial reporting. Under the supervision
and with the participation of management, including the chief executive officer and chief financial officer, management assessed the
effectiveness of internal control over financial reporting as of December 31, 2019 based on the framework in “Internal Control—Integrated
Framework” (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on that assessment,
management has concluded that the Company’s internal control over financial reporting was effective at December 31, 2019 to provide
reasonable assurance regarding the reliability of its financial reporting and the preparation of its financial statements for external purposes
in accordance with United States generally accepted accounting principles. Due to its inherent limitations, internal control over financial
reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to
the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.
Deloitte & Touche LLP, an independent registered public accounting firm, has audited the Company’s financial statements included in
this report on Form 10-K and issued its report on the effectiveness of the Company’s internal control over financial reporting as of
December 31, 2019, which is included herein.
Giovanni Caforio
Chief Executive Officer
David V. Elkins
Chief Financial Officer
February 24, 2020
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2019 Annual Report
CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
As of December 31, 2019, management carried out an evaluation, under the supervision and with the participation of its chief executive
officer and chief financial officer, of the effectiveness of the design and operation of its disclosure controls and procedures as defined in
Exchange Act Rules 13a-15(e) and 15d-15(e), as of the end of the period covered by this 2019 Form 10-K. Based on this evaluation,
management has concluded that as of December 31, 2019, such disclosure controls and procedures were effective.
Management’s Report on Internal Control Over Financial Reporting
Management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Exchange
Act Rule 13a-15(f). Under the supervision and with the participation of management, including the chief executive officer and chief
financial officer, management assessed the effectiveness of internal control over financial reporting as of December 31, 2019 based on
the framework in “Internal Control—Integrated Framework” (2013) issued by the Committee of Sponsoring Organizations of the Treadway
Commission. Based on that assessment, management has concluded that the Company’s internal control over financial reporting was
effective at December 31, 2019 to provide reasonable assurance regarding the reliability of its financial reporting and the preparation of
its financial statements for external purposes in accordance with United States generally accepted accounting principles. Due to its inherent
limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of
effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the
degree of compliance with the policies or procedures may deteriorate.
We have excluded from the scope of our assessment of internal control over financial reporting the operations and related assets of Celgene
Corporation which we acquired on November 20, 2019. At December 31, 2019 and for the period from acquisition through December 31,
2019, total assets and total revenues subject to Celgene's internal control over financial reporting represented 8% and 7% of BMS's
consolidated total assets and total revenues as of and for the year ended December 31, 2019. Based on its assessment, BMS management
believes that, as of December 31, 2019, the Company's internal control over financial reporting is effective based on those criteria.
Deloitte & Touche LLP, an independent registered public accounting firm, has audited the Company’s financial statements included in
this report on this 2019 Form 10-K and issued its report on the effectiveness of the Company’s internal control over financial reporting
as of December 31, 2019, which is included herein.
Changes in Internal Control Over Financial Reporting
As of December 31, 2019, management is in the process of evaluating and integrating the internal controls of the acquired Celgene
business into the Company's existing operations. Other than the controls enhanced or implemented to integrate the Celgene business,
there has been no change in the Company's internal control over financial reporting during the year ended December 31, 2019, that has
materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.
OTHER INFORMATION
None.
81
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the shareholders and the Board of Directors of Bristol-Myers Squibb Company
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Bristol-Myers Squibb Company and subsidiaries (the "Company") as
of December 31, 2019 and 2018, the related consolidated statements of earnings, comprehensive income, and cash flows, for each of the
three years in the period ended December 31, 2019, and the related notes (collectively referred to as the "financial statements"). In our
opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2019
and 2018, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2019, in
conformity with accounting principles generally accepted in the United States of America.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB),
the Company's internal control over financial reporting as of December 31, 2019, based on criteria established in Internal Control -
Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated
February 24, 2020, expressed an unqualified opinion on the Company's internal control over financial reporting.
Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the
Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be
independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of
the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our
audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or
fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding
the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant
estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits
provide a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matters communicated below are matters arising from the current-period audit of the financial statements that were
communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to
the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical
audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the
critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.
Gross-to-Net U.S. Rebate Accruals for U.S. Medicaid, Medicare Part D, and managed healthcare - Refer to “Note 2 - Revenue” to
the financial statements
Critical Audit Matter Description
As more fully disclosed in Note 2 to the financial statements, the Company reduces gross product sales from list price at the time revenue
is recognized for expected charge-backs, discounts, rebates, sales allowances and product returns, which are referred to as gross-to-net
(“GTN”) adjustments. These reductions are attributed to various commercial arrangements, managed healthcare organizations, and
government programs that mandate various reductions from list price. Charge-backs and cash discounts are reflected as a reduction to
receivables and settled through the issuance of credits to the customer. All other rebates, discounts and adjustments, are reflected as a
liability and settled through cash payments to the customer.
Certain of the GTN liabilities related to U.S. Medicaid, Medicare Part D, and managed healthcare organizations rebate programs (the
“GTN U.S. rebate accruals”) involve the use of significant assumptions and judgments in their calculation. These significant assumptions
and judgments include consideration of legal interpretations of applicable laws and regulations, historical claims experience, payer channel
mix, current contract prices, unbilled claims, claims submission time lags, and inventory levels in the distribution channel.
Given the complexity involved in determining the significant assumptions used in calculating the GTN U.S. rebate accruals, auditing
these estimates involved especially subjective judgment.
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2019 Annual Report
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to GTN U.S. rebate accruals included the following, among others:
• We evaluated the appropriateness and consistency of the Company’s methods and assumptions used to calculate GTN U.S.
rebate accruals.
• We tested the effectiveness of internal controls over the review of the Company’s estimation model, including underlying
assumptions and key inputs into the Company’s process to calculate GTN U.S. rebate accruals.
• We tested the mathematical accuracy of GTN U.S. rebate accruals.
• We tested significant assumptions and key inputs used to calculate GTN U.S. rebate accruals.
• We evaluated the Company’s ability to estimate GTN U.S. rebate accruals accurately by comparing actual amounts incurred for
GTN U.S. rebate accruals to historical estimates.
• We tested the overall reasonableness of the GTN U.S. rebate accruals recorded at period end by developing an expectation for
comparison to actual recorded balances.
• We involved audit professionals with industry and quantitative analytics experience to assist us in performing our auditing
procedures.
Taxes - Unrecognized Tax Benefit Liabilities for U.S. Transfer Pricing - Refer to “Note 7- Income Taxes” to the financial statements
As more fully disclosed in Note 7 to the financial statements, the Company recognizes certain income tax benefits associated with
transactions between its U.S. operating companies and related foreign affiliates. These income tax benefits are estimated based on transfer
pricing agreements, third-party transfer pricing studies, and the Company’s judgment as to whether it is more-likely-than-not the benefits
will be realized. Tax benefits that may not ultimately be realized by the Company, as determined by its judgment, are accrued for as
unrecognized tax benefit liabilities. The amounts recognized as unrecognized tax benefit liabilities related to U.S. transfer pricing may
be significantly affected in subsequent periods due to various factors, such as changes in tax law, identification of additional relevant
facts, or a change in the Company’s judgment regarding measurement of the tax benefits upon ultimate settlement with the taxing
authorities.
Given the complexity associated with assumptions used to calculate unrecognized tax benefit liabilities related to U.S. transfer pricing,
coupled with the significant judgments made by the Company in their determination, auditing these estimates involved especially subjective
judgment.
Our audit procedures related to unrecognized tax benefit liabilities related to U.S. transfer pricing included the following, among others:
• We evaluated the appropriateness and consistency of the Company’s methods and assumptions used in the identification,
recognition, measurement, and disclosure of unrecognized tax benefit liabilities.
• We tested the effectiveness of internal controls over the review of the underlying assumptions and key inputs into the Company’s
process to calculate unrecognized tax benefit liabilities.
• We obtained an understanding of the Company’s related party transactions and transfer pricing policies.
• We tested the mathematical accuracy of the unrecognized tax benefit liabilities.
• We tested the completeness of unrecognized tax benefit liabilities.
• We tested the reasonableness of the underlying tax positions and amounts accrued for a selection of unrecognized tax benefit
liabilities by reviewing the Company’s evaluation of the relevant facts and tax law associated with the tax position, and testing
the significant assumptions and inputs used to calculate the unrecognized tax benefit liabilities by reference to third party data,
information produced by the entity, our understanding of transfer pricing principles and tax laws, and inquires of management.
• We evaluated whether the Company had appropriately considered new information that could significantly change the
recognition, measurement or disclosure of the unrecognized tax benefit liabilities.
• We involved income tax specialists and audit professionals with industry experience to assist us in performing our auditing
procedures.
Valuation of Certain Intangible Assets in the Celgene Corporation Acquisition - Refer to “Note 1 - Accounting Policies and Recently
Issued Accounting Standards” and “Note 4 - Acquisitions, Divestitures, Licensing and Other Arrangements” to the financial statements
The Company completed the acquisition of Celgene Corporation (“Celgene”) for approximately $80.3 billion on November 20, 2019.
The Company accounted for this acquisition as a business combination. Accordingly, the purchase price was allocated, on a preliminary
83
basis, to the assets acquired and liabilities assumed based on their respective fair values, including to currently-marketed product right
intangible assets (“product rights”) and in-process research and development intangible assets (“IPR&D assets”). The Company estimated
the fair value of the product rights and IPR&D assets using a discounted cash flow method. The fair value determination of product rights
and IPR&D assets required the Company to make significant estimates and assumptions related to forecasted future cash flows and the
selection of the discount rates.
We identified the valuation of certain product rights and IPR&D assets for the Celgene acquisition as a critical audit matter because of
the significant estimates and assumptions used by the Company to determine the fair value of these assets. Auditing the estimates and
assumptions related to the valuation of certain product rights and IPR&D assets required a high degree of auditor judgment and an
increased extent of effort, including the involvement of our valuation specialists, when performing audit procedures to evaluate the
reasonableness of management’s forecasts of future cash flows and the selection of the discount rates for those product rights and IPR&D
assets.

Our audit procedures related to the valuation of certain product rights and IPR&D assets for the Celgene acquisition, including forecasts
of future cash flows and the selection of the discount rates for certain product rights and IPR&D assets included the following, among
others:
• We evaluated the appropriateness and consistency of the Company’s methods and assumptions used to forecast future cash flows
and select the discount rates.
• We tested the effectiveness of controls over the valuation of certain product rights and IPR&D assets, including the Company’s
controls over forecasts of future cash flows and the selection of the discount rates.
• We performed sensitivity analyses of the significant assumptions used in the valuation model to evaluate the change in fair value
resulting from changes in the significant assumptions.
• We assessed the reasonableness of the Company’s forecasts of future cash flows by comparing the forecasts to historical results
of operations, certain peer companies, and/or internal and external market studies.
• With the assistance of our valuation specialists, we evaluated the reasonableness of the discount rates by:
Testing the source information underlying the determination of the discount rates and testing the mathematical accuracy
of the calculation.
Developing a range of independent estimates and comparing those to the discount rates selected by management.
• We evaluated whether the forecasted future cash flows were consistent with evidence obtained in other areas of the audit.
Parsippany, New Jersey

February 24, 2020
We have served as the Company's auditor since 2006.
84
2019 Annual Report
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the shareholders and the Board of Directors of Bristol-Myers Squibb Company
Opinion on Internal Control over Financial Reporting
We have audited the internal control over financial reporting of Bristol-Myers Squibb Company and subsidiaries (the “Company”) as of
December 31, 2019, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). In our opinion, the Company maintained, in all material respects, effective internal
control over financial reporting as of December 31, 2019, based on criteria established in Internal Control - Integrated Framework (2013)
issued by COSO.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB),
the consolidated financial statements as of and for the year ended December 31, 2019, of the Company and our report dated February
24, 2020, expressed an unqualified opinion on those consolidated financial statements.
As described in Management’s Report on Internal Control Over Financial Reporting, management excluded from its assessment the
internal control over financial reporting of Celgene Corporation, which was acquired on November 20, 2019 and whose financial statements
constitute 8% and 7% of total assets and total revenues, respectively, of the consolidated financial statement amounts as of and for the
year ended December 31, 2019. Accordingly, our audit did not include the internal control over financial reporting of Celgene Corporation.
Basis for Opinion
The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of
the effectiveness of internal control over financial reporting, included in the accompanying Management's Report on Internal Control
Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based
on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company
in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission
and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our
audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists,
testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other
procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
Definition and Limitations of Internal Control over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting
principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance
of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide
reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally
accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations
of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections
of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Parsippany, New Jersey

February 24, 2020
85
PERFORMANCE GRAPH
The following graph compares the cumulative total stockholders' returns of our common shares with the cumulative total stockholders'
returns of the companies listed in the Standard & Poor's 500 Index and a composite peer group of major pharmaceutical companies
comprised of AbbVie, Amgen, AstraZeneca, Biogen, Gilead, GlaxoSmithKline, Johnson & Johnson, Lilly, Merck, Novartis, Pfizer, Roche
and Sanofi. The graph assumes $100 investment on December 31, 2014 in each of our common shares, the S&P 500 Index and the stock
of our peer group companies, including reinvestment of dividends, for the years ended December 31, 2015, 2016, 2017, 2018 and 2019.
The stock price performance on the following graph is not necessarily indicative of future stock price performance.
2014 2015 2016 2017 2018 2019

Bristol-Myers Squibb $ 100.00 $ 119.26 $ 103.17 $ 111.12 $ 96.79 $ 123.64
S&P 500 100.00 101.38 113.51 138.29 132.23 173.86
Peer Group 100.00 102.92 102.35 117.95 129.78 152.19
86
2019 Annual Report
FIVE YEAR FINANCIAL SUMMARY

Amounts in Millions, except per share data 2019 2018 2017 2016 2015
Income Statement Data:
Total Revenues $ 26,145 $ 22,561 $ 20,776 $ 19,427 $ 16,560
Net Earnings 3,460 4,947 975 4,507 1,631

Noncontrolling Interest 21 27 (32) 50 66
BMS 3,439 4,920 1,007 4,457 1,565
Net Earnings per Common Share Attributable to

BMS:
Basic $ 2.02 $ 3.01 $ 0.61 $ 2.67 $ 0.94
Diluted 2.01 3.01 0.61 2.65 0.93
Weighted average common shares outstanding:

Basic 1,705 1,633 1,645 1,671 1,667
Diluted 1,712 1,637 1,652 1,680 1,679
Cash dividends paid on BMS common and

preferred stock $ 2,679 $ 2,613 $ 2,577 $ 2,547 $ 2,477
Financial Position Data at December 31:

Marketable debt securities(a)(b) 3,814 3,623 3,739 4,724 6,442
Total Assets 129,944 34,986 33,551 33,707 31,748
Long-term debt(a) 46,150 6,895 6,975 6,465 6,550
Equity 51,698 14,127 11,847 16,347 14,424
(a) Includes current and non-current portion.
(b) Prior period amounts were conformed to current period presentation.
87
SUMMARY OF ABBREVIATED TERMS
Bristol-Myers Squibb Company and its consolidated subsidiaries may be referred to as Bristol-Myers Squibb, BMS, the Company, we,
our or us in this 2019 Form 10-K, unless the context otherwise indicates. Throughout this 2019 Form 10-K, we have used terms which
are defined below:
2019 Form 10-K Annual Report on Form 10-K for the fiscal year ended December 31, 2019 IO Immuno-Oncology
AbbVie AbbVie Inc. IPRD in-process research and development
ACS acute coronary syndrome JIA Juvenile Idiopathic Arthritis
ALL acute lymphoblastic leukemia LOE loss of exclusivity
Amgen Amgen Inc. LIBOR London Interbank Offered Rate
Amylin Amylin Pharmaceuticals, Inc. Lilly Eli Lilly and Company
aNDA abbreviated New Drug Application mCRPC metastatic castration-resistant prostate cancer
ASEAN Association of Southeast Asian Nations MDL multi-district litigation
AstraZeneca AstraZeneca PLC MDS myelodysplastic syndromes
BCMA B-cell maturation antigen Mead Johnson Mead Johnson Nutrition Company
Biogen Biogen, Inc. Merck Merck & Co., Inc.
BLA Biologics License Application MSI-H high microsatellite instability
CERCLA U.S. Comprehensive Environmental Response, Compensation and NAV net asset value
Liability Act
Celgene Celgene Corporation Nektar Nektar Therapeutics
CML chronic myeloid leukemia NDA New Drug Application
CPPIB CPPIB Credit Europe S.A.R.L., a Luxembourg private limited liability NKT natural killer T
company
CRC colorectal cancer NLRP3 NACHT, LRR and PYD domains-containing protein 3
CytomX CytomX Therapeutics, Inc. Novartis Novartis Pharmaceutical Corporation
dMMR DNA mismatch repair deficient NSCLC non-small cell lung cancer
DSA Distribution Services Agreement NVAF non-valvular atrial fibrillation
EC European Commission Ono Ono Pharmaceutical Co., Ltd.
EGFR estimated glomerular filtration rate OTC Over-the-counter
EMA European Medicines Agency Otsuka Otsuka Pharmaceutical Co., Ltd.
EPO European Patent Office PD-1 programmed death receptor-1
EPS earnings per share Pfizer Pfizer, Inc.
ERISA Employee Retirement Income Security Act of 1974 PsA psoriatic arthritis
ESCC esophageal squamous cell carcinoma R&D research and development
EU European Union RA rheumatoid arthritis
FASB Financial Accounting Standards Board RCC renal cell carcinoma
FCPA Foreign Corrupt Practices Act REMS Risk Evaluation and Mitigation Strategy
FDA U.S. Food and Drug Administration Roche Roche Holding AG
FL follicular lymphoma RRMM relapsed/refractory multiple myeloma
F-Star F-Star Alpha Ltd. Sanofi Sanofi S.A.
GAAP U.S. generally accepted accounting principles sBLA supplemental Biologics License Application
GBM glioblastoma multiforme SCCHN squamous cell carcinoma of the head and neck
Gilead Gilead Sciences, Inc. SEC U.S. Securities and Exchange Commission
GILTI global intangible low taxed income STING stimulator of interferon genes
GlaxoSmithKline GlaxoSmithKline PLC the 2012 Plan The 2012 Stock Award and Incentive Plan
GTN gross-to-net the Act the Tax Cuts and Jobs Act of 2017
GvHD graft-versus-host disease U.S. United States
Halozyme Halozyme Therapeutics, Inc. UK United Kingdom
HCC Hepatocellular carcinoma VAT value added tax
HIV human immunodeficiency virus VTE venous thromboembolic
ImClone ImClone Systems Incorporated
88
Bristol Myers Squibb
BRISTOL MYERS SQUIBB | Board of Directors
Giovanni Caforio, M.D. Julia A. Haller, M.D.

Chairman of the Board and Chief Executive Officer, Opthalmologist-in-Chief, Wills Eye Hospital
Bristol Myers Squibb (d)
(e)
Alan J. Lacy
Vicki L. Sato, Ph.D. Former Non-Executive Chairman,
Lead Independent Director, Bristol Myers Squibb; Dave & Buster’s Entertainment, Inc.
and Chairman of the Board, Denali Therapeutics. (a, b)
Former President and Chief Scientific Officer of
Vertex Pharmaceuticals Dinesh C. Paliwal
(b, d) President and Chief Executive Officer,
Harman International
Peter J. Arduini (b, c, e)
President and Chief Executive Officer,
Integra LifeSciences Holdings Corporation Theodore R. Samuels
(a, c, e) Retired President of Capital Guardian
Trust Company
Robert Bertolini (a, b)
Former President and Chief Financial Officer,
Bausch & Lomb Incorporated. Former Chief Financial Gerald L. Storch
Officer, Schering-Plough Corp. Chief Executive Officer, Storch Advisors.
(a, b) Former CEO of Hudson’s Bay Company
(a, c)
Michael W. Bonney
Executive Chair, Kaleido Biosciences, Inc. Karen H. Vousden, Ph.D.
(a, e) Chief Scientist, Cancer Research UK and Senior Group
Leader, The Francis Crick Institute
Matthew W. Emmens (c, d, e)
Retired Chief Executive Officer and Chairman of the
Board of Shire PLC. Former Chairman, President, CEO Phyllis R. Yale
and Director, Vertex Pharmaceuticals Advisory Partner, Bain & Company
(c, d, e) (b)
Michael Grobstein
Retired Vice Chairman, Ernst & Young LLP
(a, c)
Members of the Board of Directors and Committee memberships as of March 10, 2020
(a) Audit Committee

(b) Committee on Directors and Corporate Governance
(c) Compensation and Management Development Committee
(d) Science and Technology Committee
(e) Integration Committee
89
2019 Annual Report
BRISTOL MYERS SQUIBB | Leadership Team
Giovanni Caforio, M.D. Samit Hirawat, M.D.

Chairman of the Board and Executive Vice President,
Chief Executive Officer Chief Medical Officer, Global Drug Development
Nadim Ahmed Severine Lacourt

Executive Vice President and Chief of Staff to the Chief Executive Officer
President, Hematology
Sandra Leung
Charles Bancroft Executive Vice President, General Counsel
Executive Vice President and
Head of Integration
Corporate Affairs and Investor Relations Kathryn Metcalfe
Executive Vice President, Corporate Affairs
Chris Boerner, Ph.D.

Executive Vice President, Ann M. Powell
Chief Commercialization Officer Executive Vice President,
Chief Human Resources Officer
Adam Dubow
Senior Vice President, Lou Schmukler
Chief Compliance and Ethics Officer Executive Vice President and President,
Global Product Development & Supply
Joseph E. Eid, M.D.

Senior Vice President and Rupert Vessey, M.A., B.M., B.Ch., F.R.C.P., D.Phil.
Head of Global Medical Affairs Executive Vice President,
Research and Early Development
John Elicker
Executive Vice President, Investor Relations Paul von Autenried
Executive Vice President,
Chief Information Officer
David Elkins
Executive Vice President and Chief Financial Officer
90
Bristol Myers Squibb
BRISTOL MYERS SQUIBB | Stockholder Information
Common Stock Form 10-K Product Names and

Company Programs
Ticker symbol: BMY For a free copy of the Company’s Annual
New York Stock Exchange Report on Form 10-K for the fiscal year ended Global products and company program
December 31, 2019, contact: names appearing throughout in italics are
Contingent Value Right referred to herein by their registered and
Corporate Secretary
Ticker symbol: BMY-RT; CELG-RT approved U.S. trademarks, unless specifically
Bristol Myers Squibb Company
New York Stock Exchange noted otherwise..
430 E. 29th Street, 14FL
New York, NY 10016 Abilify is a trademark of Otsuka
Stockholder Services Pharmaceutical Co., Ltd.
The Form 10-K is also available
All inquiries concerning stockholder accounts at investor.bms.com Atripla is a trademark of Gilead Sciences, Inc.
and stock transfer matters – including
The most recent certifications by the Avapro/Avalide (known in the EU as Aprovel/
address changes, the elimination of duplicate
Company’s chief executive officer and chief Karvea) and Plavix are trademarks of Sanofi
mailings and the Shareowner Services Plus
financial officer pursuant to Section 302 of
PlanSM – should be directed to the Company’s Byetta is a trademark of Amylin
the Sarbanes-Oxley Act of 2002 are filed as
Transfer Agent and Registrar: Pharmaceuticals, LLC
exhibits to the Company’s Form 10-K. The
Company has also filed with the New York ENHANZE is a trademark of Halozyme, Inc.
EQ Shareowner Services
Stock Exchange the most recent Annual
1110 Centre Pointe Curve, Suite 101
CEO Certification as required by Section Erbitux is a trademark of ImClone LLC
Mendota Heights, MN 55120-4100
303A.12(a) of the New York Stock Exchange
Farxiga and Onglyza are trademarks of
www.shareowneronline.com Listed Company Manual.
AstraZeneca AB
855-598-5485 (within the U.S.) Additional Information Gleevec is a trademark of Novartis AG
651-450-4064 (outside the U.S.)
Information on the following subjects is Keytruda is a trademark of Merck Sharp
A telecommunications relay service should
available at www.bms.com: & Dohme Corp.
be used by the hearing impaired when
• Bristol Myers Squibb Foundation
calling the telephone numbers above. Otezla is a trademark of Amgen Inc.
• Clinical Trials
• Compliance and Ethics Yescarta is a trademark of Kite Pharma, Inc.
Shareowner Services Plus PlanSM • Diversity and Workforce Statistics
The Shareowner Services Plus PlanSM is • Patient Assistance Programs
designed for long-term investors who wish • Policy and Advocacy Engagement
to build share ownership in the Company’s and Political Contributions
Brand names of products that are in all italicized letters,
common stock over time. You can participate • Sustainability/Environmental Programs without an asterisk, are registered trademarks of Bristol
in the plan if you are a registered holder of Myers Squibb and/or one of its subsidiaries.
the Company’s common stock. If you do not This Annual Report contains certain
own the Company’s common stock, you can forward-looking information within the
become a participant by making your initial meaning of the Private Securities Litigation
purchase through the plan. The plan Reform Act of 1995. These forward-looking
features dividend reinvestment, optional statements are based on current expec-
cash purchase, share safekeeping, and share tations and involve inherent risks and
sales and transfers. Bristol Myers Squibb uncertainties that could cause actual out-
Company has appointed EQ Shareowner comes and results to differ materially from
Services as Administrator for the plan. current expectations. Please see page 26 in
The plan is not sponsored or administered the Financial Review for a discussion and
by Bristol Myers Squibb Company. description of these risks and uncertainties.
The Company undertakes no obligation to
publicly update any forward-looking state-
ment, whether as a result of new informa-
tion, future events or otherwise.
91
2019 Annual Report
THIS PAGE INTENTIONALLY LEFT BLANK
92
Reducing
the Risk of
Stroke
Yoshikazu Takahashi,
of Nigata, Japan, was
diagnosed with non valvular
atrial fibrillation (NVAF)
when he was 60 years old.
He had experienced a Yoshikazu retired from his

bout of lightheadedness position at a paper trading
that sent him to his company and is back to
doctor, who detected the work as a sales assistant
disease after evaluating at a printing company,
data from the 24-hour accompanying sales
cardiac monitor he had representatives when they
Yoshikazu wear. meet with clients. Today, six
years since his diagnosis, he
In NVAF, electrical activity is grateful that his doctor
in the heart is disordered, prescribed Eliquis for him.
causing an abnormal and
irregular heart rhythm “After I learned more about
that may result in blood the possible risks of stroke
clots that can travel from associated with NVAF, the
the heart to the brain and fact that I have not suffered
trigger a stroke. a stroke holds special
meaning to me,” he said.
Yoshikazu thought NVAF
was a minor condition, Yoshikazu (center), with his son, Hiroaki Takahashi, and granddaughter, Mei Takahashi, had not
Eliquis remains the number
until both his doctor and realized that NVAF increased the risk of stroke. one oral anticoagulant
his son, an Eliquis sales globally. It is used to reduce
representative for Bristol Myers Squibb Japan, told the risk of stroke and blood clots in people who have
him otherwise. nonvalular atrial fibrillation; to treat blood clots in the legs
(deep vein thrombosis) and lungs (pulmonary embolism),
“I never imagined that nonvalvular atrial fibrillation could and to reduce the risk of them occurring again; and to
lead to something more serious. I was relieved when my reduce the risk of the formation of a blood clot in the legs
doctor explained more about the disease and how Eliquis and lungs in people who have had hip or knee replacement
could reduce my risk of having a stroke,” Yoshikazu said. surgery. n
Visit bms.com to see how we’re bringing a human touch to everything we do.
bms.com
430 E 29th Street, New York, NY 10016 • 212-546-4000

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What is nonvalvular atrial fibrillation (NVAF)?

What is nonvalvular atrial fibrillation (NVAF)?

How did Eliquis help Yoshikazu Takahashi?

How did Eliquis help Yoshikazu Takahashi?

We’re inspired by a single vision:

2019 ANNUAL REPORT

A BIOPHARMA LEADER THE POWER OF FOLLOWING THE SCIENCE

2019 Full Year Revenues

launch indication for ide-cel

A COMPANY FOR THE FUTURE Giovanni Caforio, M.D.

GREENHOUSE GAS (GHG) REDUCTION PRODUCT DEVELOPMENT, PACKAGING,

18% 50% 100% of new products in our R&D

WATER MANAGEMENT PRACTICES & INNOVATIONS

12 LEED certifications received since

Awarded Energy Star Partner of the Year

6% 6% reduction in water usage from

Two years later, she had another stroke.

Black Organization for Leadership and

Inspired by Patients. Howard University Hospital targeted African-American

The People and Business Resource Groups (PBRGs)

Differently-Abled Workplace Network (DAWN) Pan Asian Network (PAN)

In 2019, a PBRG partnership with the Oncology

Veterans Community Network (VCN) Organization for Latino Achievement (OLA)

Lesbian, Gay, Bisexual, Transgender and Allies

OPDIVO ✦ OPDIVO ✦ OPDIVO ✦ OPDIVO ✦

Invasive Bladder Cancer Metastatic NSCLC

by Therapeutic Area + Cabozantinib✦

LPA1 Antagonist HSP47✦ Pegbelfermin JNK Inhibitor

Note: Above pipeline excludes clinical collaborations

^ Trial(s) exploring various combinations

Chris Dougherty, 56, often uses

near his California home.

waiting for more breakthroughs in More information can be found

BRISTOL MYERS SQUIBB

Management’s Discussion and 2

Quantitative and Qualitative 27

Consolidated Financial Statements 28

Notes to the Consolidated 31

Controls and Procedures 81

Five-Year Financial Summary 87

Summary of Abbreviated Terms 88

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following table summarizes our financial information:

Diluted Earnings Per Share

Significant Product and Pipeline Approvals

The following is a summary of the significant approvals received in 2019:

Product Date Approval

Approved in Japan in combination with pomalidomide and dexamethasone for multiple

November 2019 FDA

Acquisitions, Divestitures, Licensing and Collaboration Arrangements

The composition of the changes in revenues was as follows:

GTN adjustments percentage 32% 28% 4%

Year Ended December 31, % Change

Eliquis 7,929 6,438 23%

Opdivo 7,204 6,735 7%

Orencia 2,977 2,710 10%

Pomalyst/Imnovid 322 — N/A

Sprycel 2,110 2,000 6%

Yervoy 1,489 1,330 12%