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Bristol-Myers Squibb Co. (BMY) | Analysis of Debt

Total Debt Disclosure

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Bristol-Myers Squibb Co., Statement of Financial Position, Debt

USD $ in millions

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    Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007 Dec 31, 2006
Short-term borrowings
Long-term debt
Total debt
Item Description The company
Total debt Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations. Bristol-Myers Squibb Co.'s total debt declined from 2008 to 2009 and from 2009 to 2010.

Interest Costs Incurred

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Bristol-Myers Squibb Co.

USD $ in millions

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  12 months ended Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007 Dec 31, 2006
Interest expense
Capitalized interest
Interest costs incurred

Source: Based on data from Bristol-Myers Squibb Co., Annual Reports

Item Description The company
Interest expense Represents the portion of interest incurred in the period on debt arrangements that was charged against earnings. Bristol-Myers Squibb Co.'s interest expense declined from 2008 to 2009 and from 2009 to 2010.
Capitalized interest The amount of interest that was capitalized during the period. Bristol-Myers Squibb Co.'s capitalized interest declined from 2008 to 2009 and from 2009 to 2010.
Interest costs incurred Total interest costs incurred during the period and either capitalized or charged against earnings. Bristol-Myers Squibb Co.'s interest costs incurred declined from 2008 to 2009 and from 2009 to 2010.

Adjusted Interest Coverage Ratio

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    Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007 Dec 31, 2006
  Selected Financial Data (USD $ in millions)
Net earnings attributable to Bristol-Myers Squibb Company
Add: Net earnings attributable to noncontrolling interest
Add: Interest expense
Add: Income tax expense (benefit)
Earnings before interest and tax (EBIT)
   
Interest costs incurred
  Ratio With and Without Capitalized Interest
Interest coverage ratio (excluding capitalized interest)1
Adjusted interest coverage ratio (including capitalized interest)2

2010 Calculations

1 Interest coverage ratio (excluding capitalized interest) = EBIT ÷ Interest expense
= ÷ =

2 Adjusted interest coverage ratio (including capitalized interest) = EBIT ÷ Interest costs incurred
= ÷ =

Ratio Description The company
Adjusted interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest). Bristol-Myers Squibb Co.'s adjusted interest coverage ratio improved from 2008 to 2009 but then slightly deteriorated from 2009 to 2010 not reaching 2008 level.

February 8, 2012

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