BristolMyers Squibb Company Essay Research Paper Joseph

Bristol-Myers Squibb Company Essay, Research Paper Joseph Esposito Intermediate Accounting II Dr. Ahmed Goma Bristol-Myers Squibb Company# 8220 ; A Critical Analysis to Disclosure in Financial Reporting # 8221 ; Bristol-Myers mission is to be the preeminent planetary diversified wellness and personal attention Company. Bristol-Myers seeks to accomplish success in the planetary market place. Product- Bristol-Myers is a shaper of many utile merchandises that people use and may depend on today. There merchandises range from Pharmaceutical ( $ 8,672 million ) , consumer medical specialties ( $ 4,278 million ) , Clairol a good known hair attention system ( $ 1,160 million ) , Matrix ( $ 306 million ) , Mead Johnson nutritionary ( $ 1,789 million ) , Convatec ( $ 726 million ) , and Zimmer ( $ 1,134 ) . Some of Bristol-Myers more good known Pharmaceuticals are Taxol which is a anticancer agent that Bristol-Myers Squibb has made one of its top research and development precedences worldwide and Pravachol received FDA labeling as the universe # 8217 ; s first lipid take downing drug to forestall first bosom onslaughts. Some of Bristol-Myers well-known world-wide consumer merchandises are Ban ( deodourant ) , Nuprin, Bufferin and Excedrin ( concern alleviation drugs ) merely celebrated its thirtieth twelvemonth. Clairol is known as one of he most widely used hair attention merchandises around the universe. Matrix a subordinate of Bristol-Myers makes merchandises such as Vavoom and Biolace hair attention merchandises. Mead Johnson Nutritional another one of Bristol-Myers really successful subordinates trades with vitamins and pamper expressions such as well-known favourites like Enfamil which is said to be every bit close to breast milk. Convatec which deals with lesion, skin attention and chronic attention merchandises. Finally, Zimmer is a shaper of surgical attention devices. Industry- Bristol-Myers Squibb Company is in one of the most competitory industries in the universe. In the last 10 old ages pharmaceutical merchandises have become progressively of import. With such diseases such as Aids and Cancer blighting our society, companies such as Bristol-Myers have to take a lead function in contending these deathly diseases. Bristol-Myers is known as one of the leaders against malignant neoplastic disease. In January of 1991 Bristol-Myers was chosen by the National Career Institute ( NCI ) to go a commercial developer of Paclitaxol, now Taxol, which is the discovery intervention against Ovarian and chest malignant neoplastic disease. Taxol comes from a rare species of yew tree found in the U.S. Pacific Northwest. Fabrication of the substance International Relations and Security Network # 8217 ; t easy due to the 50-step procedure taken to pull out it. Bristol-Myers made Taxol its figure one Research and Development precedence. Bristol-Myers leads worldwide in Cancer research and prides itself on it. Market- Bristol-Myers Squibb Company # 8217 ; s market International Relations and Security Network # 8217 ; t merely the U.S. Its market extends all over the universe, from Europe, Asia and South America. One of Bristol-Myers biggest market is Eastern Europe. A Magyar company named Pharmavit develops one of Eastern Europe # 8217 ; s most popular vitamins called Plusssz. Plusssz has achieved 97 per centum name acknowledgment in Hungary. Fifty per centum of the people have used the merchandise while 24 per centum usage it on a regular basis. The Plusssz line has become so successful that Mead Johnson, Bristol-Myers planetary nutritionary concern, is test selling Plusssz for launch in the Philippines and many other parts of the universe. Plusssz has established Bristol-Myers as an instant participant in Hungary, a market that is among the most competitory in all of Eastern Europe. Similarities and Differences- There are many similarities and differences between Bristol-Myers Annual Reports, Form 10K and 10Q Reports. The one-year studies for Bristol-Myers are really colourful and elaborate. However the Form 10K and 10Q studies are non colourful but merely Fiscal Statements. The one-year study is designed for the stockholder and informs any would be purchaser. Whereas the Form10K and 10Q studies are in apparent black and white and function the intent of informing none merely the Securities and Exchange Commission ( SEC ) . It is non sent out to stockholders or would be stockholders so it isn # 8217 ; t as brassy and calendered as the one-year study. The Form 10K study has many studies inside. The 10K first begins with an debut merely as the one-year study does with a description of Bristol-Myers. It than goes into item about its merchandises much like the one-year study, nevertheless with no images or colour which the one-year study uses to its advantage. Howev er the 10K study doesn # 8217 ; t explicate in item about the merchandises. It gives a short description whereas the one-year study goes into full item about all its merchandises. After merchandises the 10K goes into item about its Domestic and Foreign operations. It starts speaking about belongingss and some of Bristol-Myers legal proceedings. The one-year study besides talks about its judicial proceeding # 8217 ; s but it hides it manner in the dorsum of the study. Largely everything from growing to success is talked about in the one-year study. After judicial proceeding # 8217 ; s the 10K goes into more about the Executive Officers, there names and ages to their place on the board. The Form 10K study is a study that is published by the financial twelvemonth while the Form 10Q study is published quarterly and the one-year study is done every twelvemonth. The Form 10K study uses a five-year fiscal sum-up. The Form 10Q studies about the company in quarters, while the one-year study summarizes the twelvemonth. In 1994, Note 1 of the Accounting rules negotiations about the Basis of Consolidation. Which merely explains that the fiscal statements have Bristol-Myers and all of its subordinates. Cash and Cash Equivalents which is the hard currency on hard currency equivalents that mature in three months or less at the clip of purchase, recorded at cost, which approximates market. Time Deposits and Marketable Securities are available for sale and are recorded at just value, which approximates cost. Inventory rating are by and large stated at mean cost, non in surplus of market. Property and Depreciation- outgos for extra reclamations and improvement # 8217 ; s are capitalized at cost, while depreciation is computed utilizing the straight-line method. The extra to be over the net assets received prior to October 31, 1970is being amortized on a straight-line footing over periods non transcending 40 old ages. The net incomes per portion are computed utilizing the weighted-average figure of portion s outstanding during the twelvemonth. Note 1 Accounting Principles is the same enemy 1995 and 1996. In 1994 Note 2 they talk about Particular Charge, which explains the judicial proceeding # 8217 ; s of the company for that twelvemonth. It is the same for 1995. In 1996 Note 2 they talk about all of there acquisitions for the twelvemonth alternatively of the judicial proceeding # 8217 ; s from the old twelvemonth cause a colony was made in 1995. For 1994 and 1995 they talk about acquisitions in Note 3. For Note 4 in 1994 and 1995 they talk about the restructuring programs for the twelvemonth. In 1994 and 1995 they explain foreign currency passage and in 1996 it is included under note 4. In 1994 and 1995 note 6 explains other income and disbursals and in 1996 they talk about there stock lists. In 1994 and 1995 note 7 contains information on proviso for income revenue enhancements, net incomes before income revenue enhancements, nevertheless in 1996 belongings, works and equipment in note 7. In 1994 and 1995 stock lists is explained for note 8, but in 1996 short-run adoption and long-run debt is the high spot for note 8. In 1994 and 1995 note 9 contains the belongings, works and equipment information, but 1996 shareholders equity is in note 9. Accrued disbursals and other liabilities are given in 1994 and 1995 for note 10, but in 1996 they talk about the fiscal instruments. In 1994 and 1995 note 11 goes on about the short term adoption and long term debt and in 1996 note 11 negotiations a small about rentals. Financial Instrument is headlined in note 12 for 1994 and 1995, nevertheless 1996goes into the section information. In 1994 and 1996 retirement benefits are e xplained in note 13, but in 1995 shareholders equity is the pick here. In 1994 and 1996 note 14 contains postretirement benefits plans other than pension, and in 1995 rental is the topic. In 1994 shareholders equity is brought up and 1995 postretirement benefits and plans other than pensions are talked about in item while in 1996 the eventualities of the litigation’s are brought up and there consequences. In 1994 note 17 contains the section information foe the companies merchandises are reported. In 1995 eventualities is the topic of the consequences of their litigation’s through the twelvemonth. And in 1994 eventualities is the concluding note 18. Note 9- Stockholders # 8217 ; Equity: On December 3,1996, Bristol-Myers Squibb board of managers authorized a two-for-one split of it common stock effectual February of 1997. The board besides recommended an amendment be considered for blessing at the one-year meeting of shareholders to increase the figure of authorised portions of common stock from 1.5 billion to 2.25 billion portions. Each of the companies preferred portions are exchangeable to 8.48 portions of common stock and is callable at the companies option. The decrease in 1996, 1995, and 1994 were a consequence due to the transition in common stock. The dividends per common stock for 1996 was $ 1.50, 1995 it was $ 1.48 and in 1994 it was $ 1.46. Stock Compensation Plans: The company allows officers, managers and cardinal employees to buy company # 8217 ; s stock at no less than 100 % of the market monetary value on the day of the month the option is granted. Options by and large become exercisable at installments of 25 % per twelvemonth and have a upper limit of 10 old ages. The program besides provides granting of stock grasp rights where the grantee may give up exercisable options and receive common stock or hard currency measured by the extra market monetary value of the common stock over the exercising monetary value. This program besides guarantees certain executives allowing of performance-based stock options. Under the TeamShare Stock Option Plan, all full clip employees, excepting cardinal executives that meet certain old ages of service demands are granted these options to buy the company # 8217 ; s common stock on the day of the month of the market monetary value. The company authorized 30,000,000 for issue under this program. As of December 31,1996, 20,250,800 options were granted under the program with 400 options granted to eligible employers. These options become exercisable on the 3rd anniversary day of the month. The company applies the Accounting Principles Board sentiment No.25, Accounting for Stock issued to Employees, in accounting for its programs. If the compensation cost for the companies other stock option programs been determined based on the just value at the grant day of the month consistent with the metrology prescribed under Statement of Financial Accounting Standards No. 123, Accounting for Stock-Based Compensation, The companies net income and net incomes per port ion would hold been reduced by $ 55 million or $ .05 per portion in 1996 and $ 35 million or $ .03 per portion in 1995. The just value of options granted in 1996 and 1995 were $ 8.51 per portion and $ 6.47 per portion utilizing the Black-Scholes option-pricing. At December 31, 1996, 104,976,640 portions of common stock was reserved for issue to the stock programs options of the preferable stock. For each outstanding portion the company gives one Right. The Right becomes exercisable if the individual or group acquires good involvement of 15 % or more, of the companies common stock. Each Right entitles the individual to purchase one one-thousandth of a portion of a series of preferable stock at the exercising monetary value of $ 200. The Right expires on December 18,1997. Each Right entitles its holder to get portions have a value twice the Right # 8217 ; s exert monetary value. The company than can deliver the Rights at $ .01 per Right at any clip until the 15th twenty-four hours after the proclamation that a 15 % place has been acquired. Note 1 Accounting Policies: Note 1 Accounting Policies are the same in all three old ages: Footing of Consolidation The amalgamate fiscal statements include the histories of Bristol-Myers Squibb Company and all of its subordinates. Cash and Cash Equivalents Cash and hard currency equivalents chiefly include securities with a adulthood of three months or less at the clip of purchase, recorded at cost, which approximates the market. Time Deposits and Market Securities Time sedimentations and marketable securities are available for sale and are recorded at just value, which approximates cost. Inventory Evaluation Inventories are by and large stated at mean cost, non in surplus of market. Capital Assets and Depreciation Outgos for add-ons, reclamations and improvement # 8217 ; s are capitalized at cost. Depreciation is by and large computed by the straight-line method based on the estimated utile lives of the related assets. Excess of cost over Net Tangible Assetss The surplus of cost over net tangibles assets receives in concern acquisitions is being amortized on a straight-line footing over periods non transcending 40 old ages. Net incomes Per Share Net incomes per common portion are computed utilizing the leaden mean figure of portions outstanding during the twelvemonth. The consequence of portions issuable under stock programs is non important. Bristol-Myers recorded a $ 310 million restructuring charge, $ 198 after revenue enhancements, in the 4th one-fourth of 1995. The restructuring had to make with the consolidation of workss, and installations related to employees expirations. The charge consisted of employee related costs of $ 190 million, $ 100 million of assets write-downs and $ 20 million of other related disbursals. Note 10 Fiscal Instruments: Bristol-Myers enter a foreign exchange option and send on the contracts to pull off its exposure to its currency fluctuations. Bristol-Myers has been exposed to foreign currency assets and liabilities, which totaled $ 1,640 million, $ 1,385 million and $ 1,117 million at December 31, 1996, 1995 and 1994. The chief currency it is in is Deutsche Markss, Gallic francs, Italian lira and Nipponese hankering. The company mitigates the currency and its consequence through 3rd party borrowers and foreign exchange forward contracts. Foreign exchange option contract normally expire within the twelvemonth and are used to fudge intercompany cargos happening during the twelvemonth. Additions are recognized in the same period as the weasel-worded minutess. Some foreign exchange forwards are used to minimise exposure to fluctuating exchange rates. Additions or losingss are recognized as weasel-worded minutess. The sums of the companies contracts at December 31, 1996, 1995 and 1994 were $ 1,331 million, $ 1,377 and $ 1,120 million. The company does non fear for any inauspicious consequence on its financials ensuing from its engagement in this. At December 31,1996, 1995, and 1994 the transporting value of all fiscal instruments, both short-run and long-run, equal the just value. Decision I found Bristol-Myers to be a really interesting company. They have a wide scope of merchandises and they are known around the universe. Whether it is in the United States or every bit far as Europe and Asia. They lead the universe in malignant neoplastic disease research, but at that place research and development goes beyond merely contending malignant neoplastic disease. They have managed to dunk at that place manus in every market in the universe. Whether it is malignant neoplastic disease research to basic nutritionary demands to hair merchandise. Everything that we might utilize and take for granted might hold been produced by Bristol-Myers or one of there subordinates. Bristol-Myers genuinely has an border in what of all time they do. Strong competition though given from there rivals like Merck and Johnson A ; Johnson will assist Bristol-Myers acquire in front. Merely with this type of competition will companies win and will the people who need there valuable medical specialt y.