
	June 30, 2025						December 31, 2024
Dollars in millions	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Cash and cash equivalents
Money market and other securities	$	—	$	8,189	$	—	$	—	$	6,559	$	—
Marketable debt securities
Certificates of deposit	—		800		—		—		308		—

Corporate debt securities	—		514		—		—		486		—
U.S. Treasury securities	—		36		—		—		39		—
Derivative assets	—		282		—		—		750		—
Equity investments	238		39		—		247		42		—
Derivative liabilities	—		301		—		—		247		—
Contingent consideration liability
Contingent value rights(a)	2		—		592		2		—		256

(a) Includes the fair value of contingent value rights associated with the Mirati acquisition as further described in "—Note 4. Acquisitions, Divestitures, Licensing and Other Arrangements." The fair value of contingent value rights was estimated using a probability-weighted expected return method and was based on significant unobservable inputs, including the discount rate and the estimated probability and timing of achieving a specified regulatory milestone. During the three months ended June 30, 2025, the change in fair value of $336 million reflected revised assumptions primarily related to the probability of achieving the specified regulatory milestone and was recorded within Other (income)/expense, net.

As further described in "Item 8. Financial Statements and Supplementary Data—Note 9. Financial Instruments and Fair Value Measurements" in the Company's 2024 Form 10-K, the Company's fair value estimates use inputs that are either (1) quoted prices for identical assets or liabilities in active markets (Level 1 inputs); (2) observable prices for similar assets or liabilities in active markets or for identical or similar assets or liabilities in markets that are not active (Level 2 inputs); or (3) unobservable inputs (Level 3 inputs). The fair value of Level 2 equity investments is adjusted for characteristics specific to the security and is not adjusted for contractual sale restrictions. Equity investments subject to contractual sale restrictions were not material as of June 30, 2025 and December 31, 2024.


	Three Months Ended June 30,				Six Months Ended June 30,
Dollars in millions	2025		2024		2025		2024
Equity investments with RDFV
Net (gain)/loss recognized	$	(4)	$	(36)	$	1	$	(122)
Less: net (gain)/loss recognized on investments sold	2		—		5		1
Net unrealized (gain)/loss recognized on investments still held	(6)		(36)		(4)		(123)

Equity investments without RDFV
Upward adjustments	(11)		(11)		(11)		(21)
Net realized (gain)/loss recognized on investments sold	—		(36)		19		(36)
Impairments and downward adjustments	—		4		45		29


Limited partnerships and other equity method investments
Equity in net (income)/loss of affiliates	37		(28)		46		(59)

Total equity investment (gains)/losses	$	22	$	(107)	$	100	$	(209)

BMS enters into foreign currency forward and purchased local currency put option contracts (foreign exchange contracts) to hedge certain forecasted intercompany inventory sales, third party sales and certain other foreign currency transactions. The objective of these foreign exchange contracts is to reduce variability caused by changes in foreign exchange rates that would affect the U.S. dollar value of future cash flows derived from foreign currency denominated sales, primarily the euro and Japanese yen. The fair values of these derivative contracts are recorded as either assets (gain positions) or liabilities (loss positions) in the consolidated balance sheets. Changes in fair value for these foreign exchange contracts, which are designated as cash flow hedges, are temporarily recorded in AOCL and reclassified to net earnings when the hedged item affects earnings (typically within the next 24 months). As of June 30, 2025, assuming market rates remain constant through contract maturities, BMS expects to reclassify pre-tax losses of $156 million into Cost of products sold for our foreign exchange contracts out of AOCL during the next 12 months. The notional amount of outstanding foreign currency exchange contracts was primarily $4.5 billion for the euro contracts and $1.2 billion for the Japanese yen contracts as of June 30, 2025.

BMS also enters into cross-currency swap contracts to hedge exposure to foreign currency exchange rate risk associated with its long-term debt denominated in euros. These contracts convert interest payments and principal repayment of the long-term debt to U.S. dollars from euros and are designated as cash flow hedges. The unrealized gains and losses on these contracts are reported in AOCL and reclassified to Other (income)/expense, net, in the same periods during which the hedged debt affects earnings. The notional amount of cross-currency swap contracts associated with long-term debt denominated in euros was $584 million as of June 30, 2025.

In January 2024, BMS entered into forward interest rate contracts of a total notional value of $5.0 billion to hedge future interest rate risk associated with the unsecured senior notes issued in February 2024. The forward interest rate contracts were designated as cash flow hedges and terminated upon the issuance of the unsecured senior notes. The $131 million gain on the transaction was included in Other Comprehensive Income/(Loss) and is amortized as a reduction to interest expense over the term of the related debt. Amounts expected to be recognized during the subsequent 12 months on forward interest rate contracts are not material.

Cash flow hedge accounting is discontinued when the forecasted transaction is no longer probable of occurring within 60 days after the originally forecasted date or when the hedge is no longer effective. Assessments to determine whether derivatives designated as qualifying hedges are highly effective in offsetting changes in the cash flows of hedged items are performed at inception and on a quarterly basis. The earnings impact related to discontinued cash flow hedges and hedge ineffectiveness was not material during all periods presented. Foreign currency exchange contracts not designated as a cash flow hedge offset exposures in certain foreign currency denominated assets, liabilities and earnings. Changes in the fair value of these derivatives are recognized in earnings as they occur.

Cross-currency swap contracts of $707 million as of June 30, 2025 are designated to hedge currency exposure of BMS's net investment in its foreign subsidiaries. Contract fair value changes are recorded in the foreign currency translation component of AOCL with a related offset in derivative asset or liability in the consolidated balance sheets. The notional amount of outstanding cross-currency swap contracts was primarily attributed to the Japanese yen of $362 million and the euro of $345 million as of June 30, 2025. Foreign currency forward contracts and zero-cost collar contracts are also designated to hedge currency exposure of BMS's net investment in its foreign subsidiaries. As of June 30, 2025, the notional amounts for both of these contracts were zero.

Fixed to floating interest rate swap contracts are designated as fair value hedges and used as an interest rate risk management strategy to create an appropriate balance of fixed and floating rate debt. The contracts and underlying debt for the hedged benchmark risk are recorded at fair value. Gains or losses resulting from changes in fair value of the underlying debt attributable to the hedged benchmark interest rate risk are recorded in interest expense with an associated offset to the carrying value of debt. Since the specific terms and notional amount of the swap are intended to align with the debt being hedged, all changes in fair value of the swap are recorded in interest expense with an associated offset to the derivative asset or liability in the consolidated balance sheets. As a result, there was no net impact in earnings. If the underlying swap is terminated prior to maturity, then the fair value adjustment to the underlying debt is amortized as an adjustment to interest expense over the remaining term of the debt.

Derivative cash flows, with the exception of net investment hedges, are principally classified in the operating section of the consolidated statements of cash flows, consistent with the underlying hedged item. Cash flows related to net investment hedges are classified in investing activities.


	June 30, 2025								December 31, 2024
	Asset(a)				Liability(b)				Asset(a)				Liability(b)
Dollars in millions	Notional		Fair Value		Notional		Fair Value		Notional		Fair Value		Notional		Fair Value
Designated as cash flow hedges
Foreign currency exchange contracts	$	4,626	$	68	$	2,296	$	(151)	$	6,428	$	424	$	43	$	—
Cross-currency swap contracts	584		74		—		—		584		26		626		(30)
Designated as net investment hedges
Foreign currency exchange contracts	—		—		—		—		185		17		—		—
Cross-currency swap contracts	308		5		398		(53)		361		23		346		(7)
Designated as fair value hedges
Interest rate swap contracts	3,300		49		1,255		(7)		1,500		10		1,955		(20)
Not designated as hedges
Foreign currency exchange contracts	2,855		69		3,077		(90)		5,749		250		5,243		(173)
Total return swap contracts(c)	452		17		—		—		—		—		443		(17)


	Three Months Ended June 30, 2025				Six Months Ended June 30, 2025
Dollars in millions	Cost of products sold		Other (income)/expense, net		Cost of products sold		Other (income)/expense, net
Foreign exchange contracts	$	13	$	8	$	(13)	$	24
Cross-currency swap contracts	—		(76)		—		(126)
Interest rate swap contracts	—		—		—		(1)
Forward interest rate contracts	—		(2)		—		(3)

	Three Months Ended June 30, 2024				Six Months Ended June 30, 2024
Dollars in millions	Cost of products sold		Other (income)/expense, net		Cost of products sold		Other (income)/expense, net
Foreign currency exchange contracts	$	(29)	$	(40)	$	(74)	$	(53)
Cross-currency swap contracts	—		7		—		36
Interest rate swap contracts	—		4		—		7
Forward interest rate contracts	—		(1)		—		(2)


	Three Months Ended June 30,				Six Months Ended June 30,
Dollars in millions	2025		2024		2025		2024
Derivatives designated as cash flow hedges
Foreign exchange contracts gain/(loss):
Recognized in Other comprehensive income/(loss)	$	(299)	$	102	$	(515)	$	241
Reclassified to Cost of products sold	13		(29)		(13)		(74)
Cross-currency swap contracts gain/(loss):
Recognized in Other comprehensive income/(loss)	70		(18)		94		(34)
Reclassified to Other (income)/expense, net	(73)		10		(121)		41
Forward interest rate contract gain/(loss):
Recognized in Other comprehensive income/(loss)	—		—		—		131
Reclassified to Other (income)/expense, net	(2)		(1)		(3)		(2)
Derivatives designated as net investment hedges
Cross-currency swap contracts gain/(loss):
Recognized in Other comprehensive income/(loss)	(45)		23		(63)		50
Foreign exchange contracts gain/(loss):
Recognized in Other comprehensive income/(loss)	(15)		18		(78)		41