8-KOther Events

BRISTOL MYERS SQUIBB CO 8-K Report (Nov 1, 2002)

Filed November 1, 2002For Securities:BMYCELG-RIBMYMP

Summary

Bristol-Myers Squibb Company (BMY) filed an 8-K on November 1, 2002, to announce a significant development regarding its financial reporting. The company stated that it expects to restate its sales and earnings for prior periods, primarily affecting 2000, 2001, and the first two quarters of 2002. This restatement is necessitated by the previously disclosed issue of U.S. wholesaler inventory buildup. As a direct consequence of this planned restatement, BMY announced a delay in filing its Form 10-Q for the quarter ended September 30, 2002. Investors are advised that the financial statements and related information for the affected periods, including the audited financials in the 2001 10-K and unaudited financials in the 2002 10-Qs, should no longer be relied upon. The press release included preliminary third-quarter 2002 results, which were not presented in accordance with Generally Accepted Accounting Principles (GAAP).

Key Highlights

  • 1BMY expects to restate sales and earnings for prior periods, primarily 2000, 2001, and Q1/Q2 2002.
  • 2The restatement is due to issues with U.S. wholesaler inventory buildup.
  • 3The company announced a delay in filing its third-quarter 2002 Form 10-Q.
  • 4Financial statements for affected periods, including the 2001 10-K and 2002 10-Qs, are no longer reliable.
  • 5Preliminary third-quarter 2002 results were released but not prepared in accordance with GAAP.
  • 6The company filed a press release dated October 24, 2002, as an exhibit to this 8-K.

Frequently Asked Questions

Bristol-Myers Squibb is announcing that it needs to restate its financial results for prior periods, primarily in 2000, 2001, and the first two quarters of 2002, due to issues related to U.S. wholesaler inventory buildup.

The restatement will primarily affect sales and earnings for the years 2000, 2001, and the first two quarters of 2002. Consequently, the audited financial statements in the 2001 10-K and the unaudited financial statements in the 2002 quarterly reports (10-Qs) for the periods ending March 31, 2002, and June 30, 2002, should no longer be relied upon.

No, the company announced that there will be a delay in filing its quarterly report on Form 10-Q for the period ended September 30, 2002. This delay is a direct result of the planned financial restatement.

This issue suggests that the company may have shipped more product to wholesalers than those wholesalers were able to sell to end customers. This can artificially inflate reported sales in a given period, but it leads to future sales declines or adjustments as inventory levels normalize, and it can indicate potential issues with demand forecasting or sales practices.