SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 1999 Commission File Number 1-1136 BRISTOL-MYERS SQUIBB COMPANY (Exact name of registrant as specified in its charter) Delaware 22-079-0350 (State or other jurisdiction of (IRS Employer Identification No.) incorporation or organization) 345 Park Avenue, New York, N.Y. 10154 (Address of principal executive offices) Telephone: (212) 546-4000 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [ X ] No [ ] At June 30, 1999, there were 1,986,075,102 shares outstanding of the Registrant's $.10 par value Common Stock.
BRISTOL-MYERS SQUIBB COMPANY INDEX TO FORM 10-Q June 30, 1999 Page No. Part I - Financial Information: Financial Statements (Unaudited): Consolidated Balance Sheet - June 30, 1999 and December 31, 2 - 3 1998 Consolidated Statement of Earnings and Comprehensive Income for the three and six months ended June 30, 1999 and 1998 4 Consolidated Statement of Cash Flows for the six months ended June 30, 1999 and 1998 5 Management's Discussion and Analysis of Financial Condition and Results of Operations 6 - 12 Part II - Other Information 13 Signatures 14
PART I FINANCIAL INFORMATION - ----------------------------- Item 1. Financial Statements - ----------------------------- BRISTOL-MYERS SQUIBB COMPANY CONSOLIDATED BALANCE SHEET - ASSETS (Unaudited, in millions except share amounts) June 30, December 31, 1999 1998 Current Assets: Cash and cash equivalents $2,081 $2,244 Time deposits and marketable securities 267 285 Receivables, net of allowances 3,218 3,190 Finished goods 1,402 1,209 Work in process 336 236 Raw and packaging materials 306 428 Inventories 2,044 1,873 Prepaid expenses 1,048 1,190 Total Current Assets 8,658 8,782 Property, Plant and Equipment 7,613 7,508 Less: Accumulated depreciation 3,158 3,079 Net Property, Plant and Equipment 4,455 4,429 Insurance Recoverable 504 523 Excess of cost over net tangible assets received in business acquisitions 1,590 1,587 Other Assets 1,007 951 Total Assets $16,214 $16,272
BRISTOL-MYERS SQUIBB COMPANY CONSOLIDATED BALANCE SHEET - LIABILITIES AND STOCKHOLDERS' EQUITY (Unaudited, in millions except share amounts) June 30, December 31, 1999 1998 Current Liabilities: Short-term borrowings $546 $482 Accounts payable 1,373 1,380 Accrued expenses 2,160 2,302 Product liability 566 877 U.S. and foreign income taxes payable 722 750 Total Current Liabilities 5,367 5,791 Other Liabilities 1,460 1,541 Long-Term Debt 1,327 1,364 Total Liabilities 8,154 8,696 Stockholders' Equity: Preferred stock, $2 convertible series: Authorized 10 million shares; issued and outstanding 11,284 in 1999 and 11,684 in - - 1998, liquidation value of $50 per share Common stock, par value of $.10 per share: Authorized 4.5 billion shares; issued 2,190,336,925 in 1999 and 2,188,316,808 in 219 219 1998 Capital in excess of par value of stock 1,291 1,075 Cumulative translation adjustment (783) (622) Retained earnings 13,705 12,540 14,432 13,212 Less cost of treasury stock 204,261,823 common shares in 1999 and 199,550,532 in 1998 6,372 5,636 Total Stockholders' Equity 8,060 7,576 Total Liabilities and Stockholders' Equity $16,214 $16,272
BRISTOL-MYERS SQUIBB COMPANY CONSOLIDATED STATEMENT OF EARNINGS AND COMPREHENSIVE INCOME (Unaudited, in millions of dollars except per share amounts) Three Months Six Months Ended June 30, Ended June 30, 1999 1998 1999 1998 EARNINGS Net Sales $4,920 $4,430 $9,774 $8,876 Expenses: Cost of products sold 1,361 1,206 2,666 2,358 Marketing,selling, 1,122 1,034 2,243 2,082 administrative and other Advertising and product 666 642 1,195 1,213 promotion Research and development 453 384 876 767 Provision for restructuring - 76 - 201 Gain on sale of businesses - (76) - (201) 3,602 3,266 6,980 6,420 Earnings Before Income Taxes 1,318 1,164 2,794 2,456 Provision for income taxes 366 329 775 694 Net Earnings $952 $835 $2,019 $1,762 Earnings Per Common Share Basic $.48 $.42 $1.02 $.89 Diluted $.47 $.41 $1.00 $.87 Average Common Shares Outstanding (in millions) Basic 1,984 1,987 1,985 1,987 Diluted 2,027 2,031 2,027 2,033 Dividends Per Common Share $.215 $.195 $.43 $.39 COMPREHENSIVE INCOME Net Earnings $952 $835 $2,019 $1,762 Other Comprehensive Income: Foreign currency translation (65) 17 (169) (87) Tax effect 3 (11) 8 5 Total Other Comprehensive Income (62) 6 (161) (82) Comprehensive Income $890 $841 $1,858 $1,680
BRISTOL-MYERS SQUIBB COMPANY CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited, in millions of dollars) Six Months Ended June 30, 1999 1998 Cash Flows From Operating Activities: Net earnings $2,019 $1,762 Depreciation and amortization 331 301 Provision for restructuring - 201 Gain on sale of businesses - (201) Other operating items (65) 22 Receivables (115) (215) Inventories (229) (84) Accounts payable 16 79 Accrued expenses (160) (271) Product liability (432) (381) Insurance recoverable 19 25 Income taxes 348 187 Other assets and liabilities (146) (67) Net Cash Provided by Operating Activities 1,586 1,358 Cash Flows From Investing Activities: Proceeds from sales of time deposits and 22 167 marketable securities Purchases of time deposits and marketable (3) (137) securities Additions to fixed assets (299) (365) Proceeds from sale of business - 406 Acquisition of businesses - (67) Other, net (59) 16 Net Cash (Used in) / Provided by Investing (339) 20 Activities Cash Flows From Financing Activities: Short-term borrowings 87 (89) Long-term debt (34) 70 Issuances of common stock under stock plans (2) 98 Purchases of treasury stock (633) (1,126) Dividends paid (854) (776) Net Cash Used in Financing Activities (1,436) (1,823) Effect of Exchange Rates on Cash 26 (6) Decrease in Cash and Cash Equivalents (163) (451) Cash and Cash Equivalents at Beginning of 2,244 1,456 Period Cash and Cash Equivalents at End of Period $2,081 $1,005
BRISTOL-MYERS SQUIBB COMPANY ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (UNAUDITED) Basis of Presentation - --------------------- In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments (consisting only of normal adjustments) necessary for a fair presentation of the financial position of Bristol-Myers Squibb Company (the "Company") at June 30, 1999 and December 31, 1998, the results of operations for the three and six months ended June 30, 1999 and 1998, and cash flows for the six months ended June 30, 1999 and 1998. These consolidated financial statements should be read in conjunction with the consolidated financial statements and the related notes included in the Company's 1998 Annual Report on Form 10-K. Second Quarter Results of Operations - ------------------------------------ Worldwide sales for the second quarter of 1999 increased 11% over the prior year to $4,920 million. The consolidated sales growth resulted from a 10% increase due to volume, a 2% increase due to changes in selling prices and a 1% decrease due to foreign exchange rate fluctuations. U.S. sales increased 19% and international sales remained at prior year levels (an increase of 3% excluding the effect of foreign exchange). Sales in the medicines products segment, which is the largest segment at 70% of total Company sales, increased 15% over the second quarter of 1998 to $3,435 million. Worldwide pharmaceutical sales increased 17% with U.S. pharmaceutical sales up 29% over the prior year. Sales growth in the second quarter resulted from a 14% increase in volume, a 2% increase in selling prices and a 1% decrease due to foreign exchange rate fluctuations. Sales of cardiovascular drugs, the largest product group in the segment, increased 20% to $881 million (22% excluding foreign exchange). Sales of PRAVACHOL*, the Company's largest selling product, increased 5% to $380 million. Sales of the anti- hypertensive MONOPRIL*, a second generation angiotensin converting enzyme (ACE) inhibitor, increased 9% to $116 million. PLAVIX, a platelet aggregation inhibitor for the reduction of stroke, heart attack and vascular death in atherosclerotic patients with recent stroke, recent heart attack or peripheral arterial disease, had sales of $128 million for the quarter. AVAPRO, an angiotensin II receptor blocker for the treatment of hypertension, had sales of $64 million. AVAPRO and PLAVIX are cardiovascular products that were launched from the Bristol- Myers Squibb and Sanofi S.A. joint venture. In May 1999, the Company and Sanofi S.A. announced the availability in the U.S. of the anti-hypertensive AVALIDE, an angiotensin II receptor blocker combined with a thiazide diuretic. Sales growth for these cardiovascular products was partially offset by an 18% decline in CAPOTEN* sales due to the loss of patent exclusivity in international markets. * Indicates brand names of products which are registered trademarks owned by the Company.
Sales of anti-cancer drugs increased 19% to $852 million. Sales of TAXOL* (paclitaxel), the Company's leading anti-cancer agent, increased 19% to $362 million as the product continues to benefit from increased use in ovarian, breast and non-small cell lung cancer. In April 1999, the Company applied for regulatory approval to extend the use of TAXOL* to treat breast cancer patients following surgery. In June 1999, the Company submitted a regulatory application to the Food and Drug Administration (FDA) to gain marketing approval for TAXOL* injection in combination with Genentech, Inc's Herceptin r as first-line therapy for women with metastatic breast cancer. Also in June, the Company filed for European marketing authorization to the Dutch Health Authorities for the use of TAXOL* for the adjuvant treatment of node-positive breast cancer. Sales of PARAPLATIN*, an anti-cancer agent used in combination with other chemotherapy agents, increased 11% to $138 million. Sales from Oncology Therapeutics Network (OTN), a specialty distributor of anti- cancer medicines and related products, increased 41% to $219 million. Anti-infective drug sales of $584 million increased 2% over the prior year. ZERIT* and VIDEX*, the Company's two anti- retroviral agents, increased 19% to $151 million and 41% to $55 million, respectively. ZERIT* is one of the most commonly prescribed thymidine nucleoside reverse transcriptase inhibitor in HIV therapy in most major markets in the world. During the quarter, the European Union gave a mutual recognition agreement on the once-daily dosing of VIDEX* for the treatment of HIV. International sales of MAXIPIME*, a fourth generation injectable cephalosporin, increased 19% to $32 million in the quarter. Effective January 1, 1999, Dura Pharmaceuticals, Inc. was appointed the exclusive distributor for MAXIPIME* in the United States. The Company is committing $100 million over the next five years in connection with the Secure the Future program, whose goals are to speed research, train doctors and enhance community outreach to fight HIV/AIDS in Southern Africa. Central nervous system drug sales of $306 million increased 26% with sales of BUSPAR*, an anti-anxiety agent, and SERZONE*, an anti-depressant, increasing 57% to $132 million, and 18% to $84 million, respectively. GLUCOPHAGE, the leading branded oral medication for the treatment of non-insulin dependent (type 2) diabetes, continued its strong growth rate with sales increasing 47% to $350 million. In May 1999, the FDA approved AVANDIA in combination with GLUCOPHAGE for the treatment of type 2 diabetes. AVANDIA is a product of SmithKline Beecham, and is being co-promoted by Bristol-Myers Squibb Company in the United States. Analgesic sales decreased 2% to $168 million. EXCEDRIN* sales increased 6% to $53 million and sales of EFFERALGAN*, an effervescent analgesic sold primarily in France, decreased 6% to $34 million. Earnings before taxes for the medicines products segment increased 19% to $893 million in 1999. As a percentage of sales, earnings before taxes for this segment improved to 26.0% in 1999 from 25.2% in 1998. Advertising and promotion, and sales force expenses improved, as a percentage of sales, partially offset by increases in cost of goods sold, as a percentage of sales.
Sales in the beauty care products segment increased 4% (5% excluding the effect of foreign exchange) to $626 million. Sales growth in the second quarter resulted from a 3% increase in volume, a 2% increase in selling prices and a 1% decrease due to foreign exchange rate fluctuations. Clairol continues to be the number one hair products company in the U.S. The introduction of a demand management manufacturing system slowed shipments during the quarter. HERBAL ESSENCES*, the number two brand in the U.S. shampoo/conditioner category and number three in the body wash category, continued its strong growth, increasing 16% to $159 million. HERBAL ESSENCES FACIAL CARE*, a line of skin care products, was launched in March 1999, and contributed $6 million in second quarter sales. AUSSIE* products contributed $33 million to second quarter sales, an increase of 22%. AUSSIE LAND*, hair products for children, was launched in March 1999 and contributed $7 million to second quarter sales. Sales of DAILY DEFENSE* increased 100% to $30 million for the second quarter, following its launch into international markets. Earnings before taxes for the beauty care segment decreased to $44 million in 1999 from $89 million in 1998, primarily due to the introduction of a demand management manufacturing system. Sales in the nutritional products segment increased 4% to $438 million (6% excluding the effect of foreign exchange). U.S. sales increased 7% and international sales decreased 1% primarily due to market conditions in Asia. Sales growth in the second quarter resulted from a 4% increase in volume, a 2% increase in selling prices and a 2% decrease due to foreign exchange rate fluctuations. The Company's Mead Johnson subsidiary continues to build on its U.S. and worldwide leadership position in the infant formula market. ENFAMIL*, the Company's largest-selling infant formula, recorded sales of $163 million, a 5% increase over the prior year. BOOST*, an adult nutritional supplement, also contributed to sales growth, increasing 45% to $29 million. In March 1999, Mead Johnson Nutritionals introduced VIACTIV* Soft Calcium Chews to address the need for a convenient, great-tasting calcium supplement for women. Sales of VIACTIV* reached $6 million in the second quarter. Earnings before taxes for the nutritional segment decreased to $71 million in 1999 from $74 million in 1998, and as a percentage of sales, decreased to 16.2% in 1999 from 17.5% in 1998 primarily due to market conditions in Asia. Medical device segment sales increased 4% to $421 million, excluding sales from a 1998 distribution agreement with the acquirer of Zimmer's divested arthroscopy and powered surgical instrument business. On this basis, medical device sales increased 5% due to volume and decreased 1% due to changes in selling prices. Fluctuations in foreign exchange had no effect on medical devices sales. Zimmer sales on this same basis increased 7% to $240 million (6% excluding foreign exchange). Knee joint replacement sales increased 12% to $95 million and hip replacement sales increased 9% to $72 million. ConvaTec sales increased 1% to $180 million (2% excluding foreign exchange). Sales of ostomy products increased 2% to $116 million partially offset by a decrease in wound care products of 3% to $56 million. Earnings before taxes for the medical device segment increased 12% to $91 million in 1999 from $81 million in 1998 and, as a percentage of sales, increased to 21.6% in 1999 from 19.4% in 1998, primarily due to improved manufacturing efficiencies.
Operating Expenses - ------------------ Total expenses for the quarter ended June 30, 1999, as a percentage of sales, decreased to 73.2% from 73.7% in 1998. Cost of products sold, as a percentage of sales, increased to 27.7% from 27.2% in 1998 due to revenue growth of OTN which carries significantly lower margins. Expenditures for advertising and promotion in support of new and existing products increased 4% to $666 million from $642 million. Marketing, selling, administrative and other expenses increased 9% to $1,122 million. Research and development expenditures increased 18% to $453 million from $384 million in 1998. Pharmaceutical research and development spending increased 19% over the prior year, and as a percentage of pharmaceutical sales, was 12.7% in the second quarter of 1999 and 12.6% in the second quarter of 1998. In research and development highlights this quarter, data on the Company's new novel cardiovascular agent in Phase II trials, VANLEV* (omapatrilat), were presented at the American Society of Hypertension. The Phase II results showed that use of VANLEV* was effective in reducing both systolic (top number) and diastolic (bottom number) blood pressure. The Company plans to file for regulatory approval for VANLEV* with the FDA by the end of the year with worldwide regulatory filings to follow. The Company is also awaiting marketing approval from the FDA for ORZEL* (UFT), an oral therapy for colorectal cancer, and TEQUIN* (gatifloxacin), a broad-spectrum quinolone antibiotic for the treatment of multiple common infections, including those of the respiratory tract. Earnings - -------- Earnings before income taxes for the second quarter increased 13% to $1,318 million from $1,164 million in 1998. The effective tax rate on earnings before income taxes decreased to 27.8% in 1999 from 28.3% in 1998. The decrease in the effective tax rate is due to increased earnings from lower tax rate jurisdictions. Net earnings increased 14% to $952 million from $835 million in 1998. Basic earnings per share increased 14% to $.48 from $.42 in 1998 and diluted earnings per share increased 15% to $.47 from $.41 in 1998. Six Months Results of Operations - -------------------------------- Worldwide sales for the first six months of 1999 increased 10% (11% excluding the effect of foreign exchange) over the prior year to $9,774 million. The consolidated sales growth resulted from a 9% increase due to volume, a 2% increase due to changes in selling prices and a 1% decrease due to the effect of foreign exchange. U.S. sales increased 16% and international sales increased 2% (3% excluding the effect of foreign exchange). Sales in the medicines products segment increased 14% over the prior year to $6,865 million. Worldwide pharmaceutical sales increased 16% with U.S. pharmaceutical sales up 25% over the prior year. Sales growth for the six months resulted from a 12% increase in volume, a 2% increase in selling prices and no effect from foreign exchange rate fluctuations.
Cardiovascular drug sales of $1,802 million increased 17% from the prior year. PRAVACHOL* increased 7% to $866 million and MONOPRIL* increased 10% to $222 million. PLAVIX had sales of $216 million for the six months and AVAPRO had sales of $114 million. Sales growth for these products was partially offset by a 22% decline in CAPOTEN* sales, due to the loss of patent exclusivity in international markets. Sales of anti-cancer drugs increased 24% to $1,687 million due to strong sales of TAXOL* and PARAPLATIN* which increased 24% to $692 million and 13% to $287 million, respectively. Sales from OTN increased 42% to $420 million. Anti-infective drug sales increased 5% to $1,217 million as ZERIT* and VIDEX* recorded gains of 18% to $302 million and 34% to $99 million, respectively. International sales of MAXIPIME* increased 24% to $62 million for the six months and sales of CEFZIL* increased 12% to $220 million. Sales of central nervous system drugs increased 10% to $574 million as BUSPAR* and SERZONE* increased 15% to $264 million and 9% to $147 million, respectively. GLUCOPHAGE continued its strong growth and increased 51% to $631 million. Analgesic sales of $360 million increased 3% primarily due to increases in EFFERALGAN* of 11% to $84 million and DAFALGAN* of 16% to $36 million partially offset by decreases in EXCEDRIN* of 3% to $112 million, coming off significant increases in 1998 due to the launch of EXCEDRIN MIGRAINE*. Earnings before taxes for the medicines products segment increased 15% to $1,894 million in 1999. As a percentage of sales, earnings before taxes for this segment improved to 27.6% in 1999 from 27.2% in 1998. Sales in the beauty care products segment increased 5% (6% excluding the effect of foreign exchange) to $1,198 million. Sales growth resulted from a 4% increase in volume, a 2% increase in selling prices and a 1% decrease due to foreign exchange rate fluctuations. HERBAL ESSENCES* continued its strong growth, increasing 21% to $323 million. HERBAL ESSENCES FACIAL CARE* contributed $12 million in six month sales. AUSSIE* products contributed $61 million, an increase of 22%, and sales of DAILY DEFENSE* increased 100% to $64 million for the six months. Earnings before taxes for the beauty care segment decreased to $109 million in 1999 from $161 million in 1998, primarily due to the introduction of a demand management manufacturing system. Sales in the nutritional products segment increased 2% to $888 million (3% excluding the effect of foreign exchange). Sales growth for the six months resulted from a 2% increase in volume, a 1% increase in selling prices and a 1% decrease due to foreign exchange rate fluctuations. Total infant formula sales increased 2% to $605 million. ENFAMIL* recorded sales of $350 million, a 6% increase over the prior year. BOOST*, an adult nutritional supplement, increased 30% to $52 million. Six month sales of VIACTIV* were $9 million. Earnings before taxes for the nutritional segment were $172 million in 1999 compared to $169 million in 1998 and, as a percentage of sales, were 19.4% in both 1999 and 1998. Medical device segment sales increased 4% to $823 million, excluding sales from a 1998 distribution agreement with the acquirer of Zimmer's divested arthroscopy and powered surgical instrument business. On this basis, medical device sales increased 3% due to volume and 1% due to foreign exchange with no effect from price changes. Zimmer sales on the same basis increased 7% to $478 million. Knee joint replacement sales increased 10% to $189 million and hip replacement sales increased 8% to $143 million. ConvaTec remained at prior year levels of $344 million as sales of ostomy products increased 2% to $224 million and wound care products decreased 2% to $111 million. Earnings before taxes for the medical devices segment increased 10% to $163 million in 1999 from $148 million in 1998 and, as a percentage of sales, improved to 19.8% in 1999 from 17.9% in 1998, resulting from a decrease, as a percentage of sales, in cost of products sold.
Operating Expenses - ------------------ Total expenses for the six months ended June 30, 1999, as a percentage of sales, decreased to 71.4% from 72.3% in 1998. Cost of products sold increased to 27.3% of sales from 26.6% in 1998 primarily due to revenue growth of OTN. Expenditures for advertising and promotion in support of new and existing products decreased 1% to $1,195 million from $1,213 million in 1998. Marketing, selling, administrative and other expenses increased 8% to $2,243 million from $2,082 million in 1998. Research and development expenditures increased 14% to $876 million from $767 million in 1998. Pharmaceutical research and development spending increased 15% over the prior year, and as a percentage of pharmaceutical sales, was 12.4% compared to 12.6% in the same period of 1998. Earnings - -------- Earnings before income taxes for the six months increased 14% to $2,794 million from $2,456 million in 1998. The effective tax rate on earnings before income taxes decreased to 27.8% in 1999 from 28.3% in 1998. Net earnings increased 15% to $2,019 million from $1,762 million in 1998. Basic earnings per share increased 15% to $1.02 from $.89 in 1998 and diluted earnings per share increased 15% to $1.00 from $.87 in 1998. Financial Position - ------------------ The balance sheet at June 30, 1999 and the statement of cash flows for the six months then ended reflect the Company's strong financial position. The Company continues to maintain a high level of working capital, increasing to $3.3 billion at June 30, 1999, from $3.0 billion at December 31, 1998. Long-Term Debt decreased slightly to $1,327 million from $1,364 million at December 1998. Internally generated funds continue to be the Company's primary source for financing expenditures for new plant and equipment. Net cash provided by Operating Activities increased 17% to $1,586 million in 1999. Additions to fixed assets for the six months ended June 30, 1999 were $299 million compared to $365 million during the same period of 1998. During the six months ended June 30, 1999, the Company purchased 10.2 million shares of its common stock at a total cost of $633 million. During the first quarter of 1998, the Company divested its BAN brand of anti-perspirants and deodorants for $165 million, resulting in a gain of $125 million before taxes. During the second quarter, the Company divested A/S GEA, a Denmark-based generic drug business, and Hexachimie, a fine chemical manufacturer based in France, resulting in a combined gain of $76 million before taxes. The Company recorded provisions for restructuring of $125 million before taxes in the first quarter and $76 million before taxes in the second quarter. The restructuring charges primarily related to the consolidation and closure of plants and facilities as part of the Company's on- going productivity programs.
Business Segments - ----------------- Three Months Ended June 30, Net Sales Earnings Before Taxes (in millions) 1999 1998 1999 1998 Medicines Products $3,435 $2,987 $893 $753 Beauty Care Products 626 603 44 89 Nutritional Products 438 423 71 74 Medical Devices 421 417 91 81 Other - - 219 167 Total Company $4,920 $4,430 $1,318 $1,164 Six Months Ended June 30, Net Sales Earnings Before Taxes (in millions) 1999 1998 1999 1998 Medicines Products $6,865 $6,044 $1,894 $1,646 Beauty Care Products 1,198 1,137 109 161 Nutritional Products 888 870 172 169 Medical Devices 823 825 163 148 Other - - 456 332 Total Company $9,774 $8,876 $2,794 $2,456 Included in earnings before taxes of each segment is a cost of capital charge. The offset to the cost of capital charge is included in Other. In addition, Other principally consists of interest income, interest expense, certain administrative expenses and allocations to the industry segments for certain corporate programs. In the second quarter of 1998, Other also includes the gain on sale of a business of $76 million and a provision for restructuring of $76 million. For the first six months of 1998, Other also includes the gain on sale of businesses of $201 million and a provision for restructuring of $201 million. In addition, the segment information reflects certain internal organizational changes made in 1999. Prior year data have been restated accordingly.
PART II - OTHER INFORMATION - --------------------------- Item 6. Exhibits and Reports on Form 8-K - ----------------------------------------- a) Exhibits (listed by number corresponding to the Exhibit Table of Item 601 in Regulation S-K). Exhibit Number and Description Page ------------------------------- ----- 27. Bristol-Myers Squibb Company Financial Data ScheduleE-27-1 b) Reports on Form 8-K. The Registrant did not file any reports on Form 8-K during the quarter ended June 30, 1999.
SIGNATURES ---------- Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. BRISTOL-MYERS SQUIBB COMPANY (Registrant) Date: August 13, 1999 /s/ Harrison M. Bains, Jr. Harrison M. Bains, Jr. Vice President and Treasurer Date: August 13, 1999 /s/ Frederick S. Schiff Frederick S. Schiff Vice President Financial Operations and Controller