NOTE: Free essay sample provided on this page should be used for references or sample purposes only. The sample essay is available to anyone, so any direct quoting without mentioning the source will be considered plagiarism by schools, colleges and universities that use plagiarism detection software. To get a completely brand-new, plagiarism-free essay, please use our essay writing service.
One click instant price quote
... about leases. Financial Instrument is headlined in note 12 for 1994 and 1995, however 1996 goes into the segment information. In 1994 and 1996 retirement benefits are explained in note 13, but in 1995 stockholders equity is the choice here. In 1994 and 1996 note 14 contains post retirement benefits plans other than pension, and in 1995 lease is the subject.
In 1994 stockholders equity is brought up and 1995 post retirement benefits and plans other than pensions are talked about in detail while in 1996 the contingencies of the litigation's are brought up and there results. In 1994 note 17 contains the segment information foe the companies products are reported. In 1995 contingencies is the subject of the results of their litigation's through the year. And in 1994 contingencies is the final note 18. On December 3, 1996, Bristol-Myers Squibb board of directors authorized a two-for-one split of it common stock effective February of 1997. The board also recommended an amendment be considered for approval at the annual meeting of stockholders to increase the number of authorized shares of common stock from 1. 5 billion to 2. 25 billion shares.
Each of the companies preferred shares are convertible to 8. 48 shares of common stock and is callable at the companies option. The reduction in 1996, 1995, and 1994 were a result due to the conversion 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, directors and key employees to purchase company's stock at no less than 100 % of the market price on the date the option is granted. Options generally become exercisable at installments of 25 % per year and have a maximum of 10 years. The plan also provides granting of stock appreciation rights where the grantee may surrender exercisable options and receive common stock or cash measured by the excess market price of the common stock over the exercise price.
This plan also guarantees certain executives granting of performance-based stock options. Under the Team Share Stock Option Plan, all full time employees, excluding key executives that meet certain years of service requirements are granted these options to purchase the company's common stock on the date of the market price. The company authorized 30, 000, 000 for issuance under this plan. As of December 31, 1996, 20, 250, 800 options were granted under the plan with 400 options granted to eligible employers. These options become exercisable on the third anniversary date. The company applies the Accounting Principles Board opinion No. 25, Accounting for Stock issued to Employees, in accounting for its plans.
If the compensation cost for the companies other stock option plans been determined based on the fair value at the grant date consistent with the metrology prescribed under Statement of Financial Accounting Standards No. 123, Accounting for Stock-Based Compensation, The companies net income and earnings per share would have been reduced by $ 55 million or $. 05 per share in 1996 and $ 35 million or $. 03 per share in 1995. The fair value of options granted in 1996 and 1995 were $ 8. 51 per share and $ 6. 47 per share using the Black-Scholes option-pricing. At December 31, 1996, 104, 976, 640 shares of common stock was reserved for issuance to the stock plans options of the preferred stock. For each outstanding share the company gives one Right.
The Right becomes exercisable if the person or group acquires beneficial interest of 15 % or more, of the companies common stock. Each Right entitles the person to buy one one-thousandth of a share of a series of preferred stock at the exercise price of $ 200. The Right expires on December 18, 1997. Each Right entitles its holder to acquire shares have a value twice the Right's exercise price. The company than can redeem the Rights at $. 01 per Right at any time until the 15 th day after the announcement that a 15 % position has been acquired. Note 1 Accounting Policies are the same in all three years: The consolidated financial statements include the accounts of Bristol-Myers Squibb Company and all of its subsidiaries.
Cash and cash equivalents primarily include securities with a maturity of three months or less at the time of purchase, recorded at cost, which approximates the market. Time deposits and marketable securities are available for sale and are recorded at fair value, which approximates cost. Inventories are generally stated at average cost, not in excess of market. Expenditures for additions, renewals and betterment's are capitalized at cost. Depreciation is generally computed by the straight-line method based on the estimated useful lives of the related assets. Excess of cost over Net Tangible Assets The excess of cost over net tangibles assets receives in business acquisitions is being amortized on a straight-line basis over periods not exceeding 40 years.
Earnings per common share are computed using the weighted average number of shares outstanding during the year. The effect of shares issuable under stock plans is not significant. Bristol-Myers recorded a $ 310 million restructuring charge, $ 198 after taxes, in the fourth quarter of 1995. The restructuring had to do with the consolidation of plants, and facilities related to employees terminations. The charge consisted of employee related costs of $ 190 million, $ 100 million of assets write-downs and $ 20 million of other related expenses.
Bristol-Myers enter a foreign exchange option and forwards the contracts to manage 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 main currency it is in is Deutsche marks, French francs, Italian lira and Japanese yen. The company mitigates the currency and its effect through third party borrowers and foreign exchange forward contracts. Foreign exchange option contract usually expire within the year and are used to hedge intercompany shipments occurring during the year.
Gains are recognized in the same period as the hedged transactions. Some foreign exchange forwards are used to minimize exposure to fluctuating exchange rates. Gains or losses are recognized as hedged transactions. The amounts of the companies contracts at December 31, 1996, 1995 and 1994 were $ 1, 331 million, $ 1, 377 and $ 1, 120 million. The company does not fear for any adverse effect on its financials resulting from its involvement in this. At December 31, 1996, 1995, and 1994 the carrying value of all financial instruments, both short-term and long-term, equal the fair value.
I found Bristol-Myers to be a very interesting company. They have a broad range of products and they are known around the world. Whether it is in the United States or as far as Europe and Asia. They lead the world in cancer research, but there research and development goes beyond just fighting cancer.
They have managed to dip there hand in every market in the world. Whether it is cancer research to basic nutritional needs to hair product. Everything that we might use and take for granted might have been produced by Bristol-Myers or one of there subsidiaries. Bristol-Myers truly has an edge in what ever they do.
Strong competition though given from there competitors like Merck and Johnson & Johnson will help Bristol-Myers get ahead. Only with this type of competition will companies succeed and will the people who need there valuable medicine. Bibliography:
Free research essays on topics related to: myers squibb, common stock, bristol myers, stockholders equity, retirement benefits
Research essay sample on Bristol Myers Myers Squibb
