What is the primary reason for this 10-Q/A filing?

This filing is an amendment to the original 10-Q report and primarily serves to restate previously issued financial statements. These restatements are to correct certain historical accounting policies to conform to U.S. GAAP and to correct errors made in the application of GAAP.

How did the restatements impact the company's net earnings and cash position?

The restatements increased net earnings for the three months ended March 31, 2003, by approximately $31 million ($0.02 per share) and for the same period in 2002 by approximately $11 million. Significant adjustments were made to reclassify investments from cash and cash equivalents to marketable securities, reducing reported cash by $1.6 billion to $2.0 billion at period-end.

What were the main drivers of the company's sales performance in the first quarter of 2003?

Worldwide sales grew 1% to $4,728 million, driven by a 3% increase from foreign exchange and a 3% increase in selling prices, which offset a 5% decrease in sales volume. The Pharmaceuticals segment saw a 2% decline, primarily due to generic competition and inventory adjustments, while international sales showed stronger growth.

What are the major legal proceedings and contingencies facing Bristol-Myers Squibb?

The company is involved in numerous significant legal proceedings and investigations, including those related to patent infringement (e.g., PLAVIX®), securities law violations (e.g., VANLEV, ImClone), pricing and sales practices, product liability (e.g., PPA, SERZONE), and environmental matters. Reserves have been established for certain wholesaler inventory and pricing/marketing practice issues, and the company is cooperating with government investigations. The ultimate outcome of these matters could be material to the company's financial condition and results of operations.

BRISTOL MYERS SQUIBB CO 10-Q Quarterly Report Q1 FY2003

Summary

Bristol-Myers Squibb Company (BMY) has filed an amendment (10-Q/A) to its quarterly report for the period ending March 31, 2003. This amendment includes restated financial statements to correct accounting policies and errors in the application of GAAP, impacting periods prior to 2001. Key restatement adjustments included corrections to revenue recognition, tax contingency reserves, and classification of cash and cash equivalents. These adjustments resulted in a net increase in net earnings for the three months ended March 31, 2003, by approximately $31 million ($0.02 per share) and for the three months ended March 31, 2002, by approximately $11 million. The restatements also affected balance sheet items, notably decreasing cash and cash equivalents by significant amounts while increasing marketable securities. Operationally, worldwide sales for the first quarter of 2003 saw a modest 1% increase to $4,728 million compared to the prior year. This was driven by a favorable foreign exchange impact and price changes, despite a decrease in volume. The Pharmaceuticals segment experienced a 2% sales decline, impacted by generic competition and inventory adjustments, while international sales showed strength. Significant legal proceedings and contingencies are ongoing, with the company establishing reserves for wholesaler inventory issues and pricing/marketing practices, and continuing to assess potential impacts from various litigation matters.

Key Highlights

1Restatement of financial statements for prior periods to conform with GAAP and correct errors, impacting periods before 2001.
2Net earnings for the three months ended March 31, 2003, increased by $31 million ($0.02 per share) due to restatement adjustments.
3Cash and cash equivalents at March 31, 2003, were reduced by $2.0 billion due to reclassification to marketable securities as part of the restatement.
4Worldwide sales for Q1 2003 increased by 1% to $4,728 million, primarily due to favorable foreign exchange and price changes, offset by lower volume.
5Pharmaceutical segment sales decreased by 2% in Q1 2003, impacted by generic competition (GLUCOPHAGE IR, TAXOL) and inventory workdowns.
6Significant ongoing legal proceedings and contingencies are disclosed, including reserves established for wholesaler inventory issues and pricing/marketing practices.
7The company is actively cooperating with SEC and U.S. Attorney's Office investigations into certain accounting and sales practices.

BRISTOL MYERS SQUIBB CO Quarterly Report (Amendment) for Q1 Ended Mar 31, 2003

Summary

Key Highlights

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