Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 27, 2020 | Nov. 02, 2020 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 27, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-3619 | |
Entity Registrant Name | PFIZER INC | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 13-5315170 | |
Entity Address, Address Line One | 235 East 42nd Street | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10017 | |
City Area Code | 212 | |
Local Phone Number | 733-2323 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 5,558,396,599 | |
Entity Central Index Key | 0000078003 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Common Stock, $.05 par value [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock, $.05 par value | |
Trading Symbol | PFE | |
Security Exchange Name | NYSE | |
0.250% Notes due 2022 [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 0.250% Notes due 2022 | |
Trading Symbol | PFE22 | |
Security Exchange Name | NYSE | |
1.000% Notes due 2027 [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.000% Notes due 2027 | |
Trading Symbol | PFE27 | |
Security Exchange Name | NYSE |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | ||
Income Statement [Abstract] | |||||
Revenues | $ 12,131 | $ 12,680 | $ 35,961 | $ 39,062 | |
Costs and expenses: | |||||
Cost of sales | [1] | 2,529 | 2,602 | 7,188 | 7,611 |
Selling, informational and administrative expenses | [1] | 3,016 | 3,260 | 8,919 | 10,110 |
Research and development expenses | [1] | 2,360 | 2,283 | 6,216 | 5,827 |
Amortization of intangible assets | 898 | 1,212 | 2,688 | 3,578 | |
Restructuring charges and certain acquisition-related costs | 4 | 365 | 435 | 295 | |
(Gain) on completion of Consumer Healthcare JV transaction | 0 | (8,087) | (6) | (8,087) | |
Other (income)/deductions––net | 1,148 | 319 | 507 | 537 | |
Income from continuing operations before provision/(benefit) for taxes on income | [2] | 2,176 | 10,727 | 10,014 | 19,190 |
Provision/(benefit) for taxes on income | (26) | 3,047 | 968 | 2,566 | |
Income from continuing operations | 2,202 | 7,680 | 9,046 | 16,625 | |
Discontinued operations––net of tax | 0 | 4 | 0 | 4 | |
Net income before allocation to noncontrolling interests | 2,202 | 7,684 | 9,046 | 16,628 | |
Less: Net income attributable to noncontrolling interests | 8 | 4 | 25 | 19 | |
Net income attributable to Pfizer Inc. | $ 2,194 | $ 7,680 | $ 9,022 | $ 16,609 | |
Earnings per common share––basic: | |||||
Income from continuing operations attributable to Pfizer Inc. common shareholders (in dollars per share) | $ 0.39 | $ 1.38 | $ 1.62 | $ 2.98 | |
Discontinued operations––net of tax (in dollars per share) | 0 | 0 | 0 | 0 | |
Net income attributable to Pfizer Inc. common shareholders (in dollars per share) | 0.39 | 1.38 | 1.62 | 2.98 | |
Earnings per common share––diluted: | |||||
Income from continuing operations attributable to Pfizer Inc. common shareholders (in dollars per share) | 0.39 | 1.36 | 1.60 | 2.92 | |
Discontinued operations––net of tax (in dollars per share) | 0 | 0 | 0 | 0 | |
Net income attributable to Pfizer Inc. common shareholders (in dollars per share) | $ 0.39 | $ 1.36 | $ 1.60 | $ 2.92 | |
Weighted-average shares––basic | 5,557 | 5,545 | 5,552 | 5,581 | |
Weighted-average shares––diluted | 5,633 | 5,649 | 5,622 | 5,690 | |
[1] | Excludes amortization of intangible assets, except as disclosed in Note 9A and Notes to Consolidated Financial Statements–– Note 1L. Basis of Presentation and Significant Accounting Policies: Amortization of Intangible Assets, Depreciation and Certain Long-Lived Assets in our 2019 Financial Report. | ||||
[2] | Income from continuing operations before provision/(benefit) for taxes on income . Biopharma’s earnings include dividend income of $44 million in the third quarter of 2020 and $43 million in the third quarter of 2019, and $196 million in the first nine months of 2020 and $184 million in the first nine months of 2019 from our investment in ViiV. See Note 4. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income before allocation to noncontrolling interests | $ 2,202 | $ 7,684 | $ 9,046 | $ 16,628 | |
Foreign currency translation adjustments, net | [1] | 1,609 | (468) | 96 | (628) |
Reclassification adjustments | 0 | 268 | 0 | 270 | |
Other comprehensive income (loss), foreign currency transaction and translation adjustment, before tax | 1,609 | (200) | 96 | (358) | |
Unrealized holding gains/(losses) on derivative financial instruments, net | (372) | 150 | (661) | 241 | |
Reclassification adjustments for (gains)/losses included in net income | [2] | 143 | (29) | (25) | (372) |
Other comprehensive income (loss), derivatives qualifying as hedges, before tax, total | (230) | 122 | (685) | (131) | |
Unrealized holding gains/(losses) on available-for-sale securities, net | 239 | 15 | 231 | 48 | |
Reclassification adjustments for (gains)/losses included in net income | [3] | (85) | (7) | (25) | 30 |
Other comprehensive income (loss), available-for-sale securities, before tax, total | 155 | 8 | 205 | 77 | |
Benefit plans: actuarial gains/(losses), net | (1,211) | (171) | (1,372) | (175) | |
Reclassification adjustments related to amortization | 67 | 60 | 200 | 180 | |
Reclassification adjustments related to settlements, net | 174 | 38 | 240 | 40 | |
Other | (206) | 42 | (123) | 60 | |
Benefit plans: amounts recognized in other comprehensive income (loss), net gain (loss), before tax, total | (1,177) | (31) | (1,055) | 105 | |
Benefit plans: prior service (costs)/credits and other, net | 0 | 0 | 0 | (1) | |
Reclassification adjustments related to amortization of prior service costs and other, net | (45) | (44) | (134) | (137) | |
Reclassification adjustments related to curtailments of prior service costs and other, net | 0 | (46) | 0 | (46) | |
Other | (3) | 3 | 1 | 4 | |
Defined benefit plan, amounts recognized in other comprehensive income (loss), net prior service cost, before tax | (47) | (88) | (133) | (180) | |
Other comprehensive income/(loss), before tax | 310 | (190) | (1,572) | (486) | |
Tax provision/(benefit) on other comprehensive income/(loss) | (262) | 84 | (527) | 50 | |
Other comprehensive income/(loss) before allocation to noncontrolling interests | 572 | (275) | (1,045) | (536) | |
Comprehensive income before allocation to noncontrolling interests | 2,774 | 7,409 | 8,001 | 16,092 | |
Less: Comprehensive income/(loss) attributable to noncontrolling interests | 11 | (6) | 16 | 8 | |
Comprehensive income attributable to Pfizer Inc. | $ 2,763 | $ 7,415 | $ 7,986 | $ 16,084 | |
[1] | Amounts in the third quarter of 2020 primarily include gains from the strengthening of certain major currencies against the U.S. dollar and a net gain related to foreign currency translation adjustments and the impact of our net investment hedging program, both attributable to our equity method investment in the GSK Consumer Healthcare joint venture. Amounts in the first nine months of 2020 primarily include gains from the strengthening of certain major currencies against the U.S. dollar, partially offset by a net loss related to foreign currency translation adjustments and the impact of our net investment hedging program, both attributable to our equity method investment in the GSK Consumer Healthcare joint venture. See Note 2B . | ||||
[2] | Reclassified into Other (income)/deductions—net and Cost of sales in the condensed consolidated statements of income. See Note 7E. | ||||
[3] | Reclassified into Other (income)/deductions—net in the condensed consolidated statements of income. |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 27, 2020 | Dec. 31, 2019 | |
Assets | |||
Cash and cash equivalents | $ 1,587 | $ 1,305 | |
Short-term investments | 8,912 | 8,525 | |
Restricted short-term investments | 11,413 | 0 | |
Trade accounts receivable, less allowance for doubtful accounts: 2020—$533; 2019—$527 | 10,012 | 8,724 | |
Inventories | [1] | 9,295 | 8,283 |
Current tax assets | 4,000 | 3,344 | |
Other current assets | 2,519 | 2,622 | |
Total current assets | 47,739 | 32,803 | |
Equity-method investments | 15,949 | 17,133 | |
Long-term investments | 3,059 | 3,014 | |
Property, plant and equipment, less accumulated depreciation: 2020—$16,636; 2019—$16,789 | 14,403 | 13,967 | |
Identifiable intangible assets, less accumulated amortization | [2] | 30,927 | 35,370 |
Goodwill | 59,902 | 58,653 | |
Noncurrent deferred tax assets and other noncurrent tax assets | 2,649 | 2,099 | |
Other noncurrent assets | 4,355 | 4,450 | |
Total assets | 178,983 | 167,489 | |
Liabilities and Equity | |||
Short-term borrowings, including current portion of long-term debt: 2020—$2,149; 2019—$1,462 | 13,363 | 16,195 | |
Trade accounts payable | 4,141 | 4,220 | |
Dividends payable | 2,112 | 2,104 | |
Income taxes payable | 1,430 | 980 | |
Accrued compensation and related items | 2,425 | 2,720 | |
Other current liabilities | 10,683 | 11,083 | |
Total current liabilities | 34,154 | 37,304 | |
Long-term debt | 49,785 | 35,955 | |
Pension benefit obligations, net | 5,350 | 5,638 | |
Postretirement benefit obligations, net | 1,087 | 1,124 | |
Noncurrent deferred tax liabilities | 4,542 | 5,578 | |
Other taxes payable | 11,720 | 12,126 | |
Other noncurrent liabilities | 6,851 | 6,317 | |
Total liabilities | 113,487 | 104,042 | |
Commitments and Contingencies | |||
Preferred stock | 0 | 17 | |
Common stock | 470 | 468 | |
Additional paid-in capital | 88,161 | 87,428 | |
Treasury stock | (110,980) | (110,801) | |
Retained earnings | 100,284 | 97,670 | |
Accumulated other comprehensive loss | (12,676) | (11,640) | |
Total Pfizer Inc. shareholders’ equity | 65,259 | 63,143 | |
Equity attributable to noncontrolling interests | 236 | 303 | |
Total equity | 65,495 | 63,447 | |
Total liabilities and equity | $ 178,983 | $ 167,489 | |
[1] | The change from December 31, 2019 reflects increases for certain products, including inventory build for new product launches, market demand, supply recovery and network strategy, and an increase due to foreign exchange. | ||
[2] | The decrease is primarily due to amortization, the $900 million impairment of IPR&D, and measurement period adjustments related to the acquisition of Array. |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($) $ in Millions | Sep. 27, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 533 | $ 527 |
Property, plant and equipment, accumulated depreciation | 16,636 | 16,789 |
Current portion of long-term debt | $ 2,149 | $ 1,462 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED) - USD ($) $ in Millions | Total | Preferred Stock [Member] | Common Stock [Member] | Add'l Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Accum. Other Comp. Loss [Member] | Shareholders' Equity [Member] | Noncontrolling Interests [Member] | |
Beginning balance (in shares) at Dec. 31, 2018 | 478 | 9,332,000,000 | 3,615,000,000 | |||||||
Beginning balance at Dec. 31, 2018 | $ 63,758 | $ 19 | $ 467 | $ 86,253 | $ (101,610) | $ 89,554 | $ (11,275) | $ 63,407 | $ 351 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 16,628 | 16,609 | 16,609 | 19 | ||||||
Other comprehensive income/(loss), net of tax | (536) | (525) | (525) | (11) | ||||||
Cash dividends declared: | ||||||||||
Common stock | (6,068) | (6,068) | (6,068) | |||||||
Preferred stock | (1) | (1) | (1) | |||||||
Noncontrolling interests | (5) | (5) | ||||||||
Share-based payment transactions (in shares) | 34,000,000 | 7,000,000 | ||||||||
Share-based payment transactions | 530 | $ 2 | 848 | $ (320) | 530 | |||||
Purchases of common stock (in shares) | (213,000,000) | |||||||||
Purchases of common stock | (8,865) | $ (8,865) | (8,865) | |||||||
Preferred stock conversions and redemptions (in shares) | (28) | |||||||||
Preferred stock conversions and redemptions | (3) | $ (1) | (2) | (3) | ||||||
Other | (42) | 19 | 19 | (61) | ||||||
Ending balance (in shares) at Sep. 29, 2019 | 449 | 9,366,000,000 | 3,835,000,000 | |||||||
Ending balance at Sep. 29, 2019 | 65,396 | $ 18 | $ 468 | 87,099 | $ (110,795) | 100,113 | (11,801) | 65,103 | 293 | |
Beginning balance (in shares) at Jun. 30, 2019 | 458 | 9,363,000,000 | 3,801,000,000 | |||||||
Beginning balance at Jun. 30, 2019 | 59,924 | $ 18 | $ 468 | 86,963 | $ (110,786) | 94,440 | (11,535) | 59,568 | 357 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 7,684 | 7,680 | 7,680 | 4 | ||||||
Other comprehensive income/(loss), net of tax | (275) | (265) | (265) | (9) | ||||||
Cash dividends declared: | ||||||||||
Common stock | (2,006) | (2,006) | (2,006) | |||||||
Preferred stock | 0 | |||||||||
Noncontrolling interests | 2 | 2 | ||||||||
Share-based payment transactions (in shares) | 3,000,000 | |||||||||
Share-based payment transactions | 128 | 136 | $ (8) | 128 | ||||||
Purchases of common stock (in shares) | (34,000,000) | |||||||||
Purchases of common stock | 0 | |||||||||
Preferred stock conversions and redemptions (in shares) | (8) | |||||||||
Preferred stock conversions and redemptions | (1) | (1) | ||||||||
Other | (61) | (61) | ||||||||
Ending balance (in shares) at Sep. 29, 2019 | 449 | 9,366,000,000 | 3,835,000,000 | |||||||
Ending balance at Sep. 29, 2019 | 65,396 | $ 18 | $ 468 | 87,099 | $ (110,795) | 100,113 | (11,801) | 65,103 | 293 | |
Beginning balance (in shares) at Dec. 31, 2019 | 431 | 9,369,000,000 | 3,835,000,000 | |||||||
Beginning balance at Dec. 31, 2019 | 63,447 | $ 17 | $ 468 | 87,428 | $ (110,801) | 97,670 | (11,640) | 63,143 | 303 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 9,046 | 9,022 | 9,022 | 25 | ||||||
Other comprehensive income/(loss), net of tax | (1,045) | (1,036) | (1,036) | (9) | ||||||
Cash dividends declared: | ||||||||||
Common stock | (6,408) | (6,408) | (6,408) | |||||||
Preferred stock | 0 | |||||||||
Noncontrolling interests | (81) | (81) | ||||||||
Share-based payment transactions (in shares) | 28,000,000 | 6,000,000 | ||||||||
Share-based payment transactions | 539 | $ 1 | 748 | $ (210) | 539 | |||||
Purchases of common stock | 0 | |||||||||
Preferred stock conversions and redemptions (in shares) | [1] | (431) | 1,000,000 | |||||||
Preferred stock conversions and redemptions | [1] | (1) | $ (17) | (15) | $ 31 | (1) | ||||
Other | (1) | (1) | ||||||||
Ending balance (in shares) at Sep. 27, 2020 | 0 | 9,397,000,000 | 3,840,000,000 | |||||||
Ending balance at Sep. 27, 2020 | 65,495 | $ 0 | $ 470 | 88,161 | $ (110,980) | 100,284 | (12,676) | 65,259 | 236 | |
Beginning balance (in shares) at Jun. 28, 2020 | 0 | 9,394,000,000 | 3,840,000,000 | |||||||
Beginning balance at Jun. 28, 2020 | 64,564 | $ 0 | $ 470 | 87,886 | $ (110,978) | 100,203 | (13,246) | 64,336 | 228 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 2,202 | 2,194 | 2,194 | 8 | ||||||
Other comprehensive income/(loss), net of tax | 572 | 569 | 569 | 3 | ||||||
Cash dividends declared: | ||||||||||
Common stock | (2,113) | (2,113) | (2,113) | |||||||
Preferred stock | 0 | |||||||||
Noncontrolling interests | (1) | (1) | ||||||||
Share-based payment transactions (in shares) | 3,000,000 | |||||||||
Share-based payment transactions | 273 | 275 | $ (2) | 273 | ||||||
Purchases of common stock | 0 | |||||||||
Preferred stock conversions and redemptions | 0 | |||||||||
Other | (1) | (1) | ||||||||
Ending balance (in shares) at Sep. 27, 2020 | 0 | 9,397,000,000 | 3,840,000,000 | |||||||
Ending balance at Sep. 27, 2020 | $ 65,495 | $ 0 | $ 470 | $ 88,161 | $ (110,980) | $ 100,284 | $ (12,676) | $ 65,259 | $ 236 | |
[1] | See Note 11. |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 27, 2020 | Sep. 29, 2019 | ||
Operating Activities | |||
Net income before allocation to noncontrolling interests | $ 9,046 | $ 16,628 | |
Adjustments to reconcile net income before allocation to noncontrolling interests to net cash provided by operating activities: | |||
Depreciation and amortization | 3,731 | 4,626 | |
Asset write-offs and impairments | 990 | 224 | |
TCJA impact | 0 | (319) | |
Gain on completion of Consumer Healthcare JV transaction, net of cash conveyed | [1] | (6) | (8,233) |
Deferred taxes from continuing operations | (597) | 2,067 | |
Share-based compensation expense | 492 | 448 | |
Benefit plan contributions in excess of expense/income | (1,643) | (429) | |
Other adjustments, net | (156) | (622) | |
Other changes in assets and liabilities, net of acquisitions and divestitures | (3,080) | (5,571) | |
Net cash provided by operating activities | 8,778 | 8,819 | |
Investing Activities | |||
Purchases of property, plant and equipment | (1,467) | (1,504) | |
Purchases of short-term investments | (9,309) | (4,583) | |
Proceeds from redemptions/sales of short-term investments | 8,397 | 7,766 | |
Net (purchases of)/proceeds from redemptions/sales of short-term investments with original maturities of three months or less | (10,741) | 8,307 | |
Purchases of long-term investments | (284) | (134) | |
Proceeds from redemptions/sales of long-term investments | 648 | 116 | |
Acquisition of business, net of cash acquired | 0 | (10,861) | |
Acquisitions of intangible assets | (38) | (364) | |
Other investing activities, net | [1] | 194 | 145 |
Net cash used in investing activities | (12,601) | (1,112) | |
Financing Activities | |||
Proceeds from short-term borrowings | 12,352 | 11,582 | |
Principal payments on short-term borrowings | (17,449) | (4,088) | |
Net (payments on)/proceeds from short-term borrowings with original maturities of three months or less | 1,628 | 2,604 | |
Proceeds from issuance of long-term debt | 16,700 | 4,942 | |
Principal payments on long-term debt | (2,511) | (5,806) | |
Purchases of common stock | 0 | (8,865) | |
Cash dividends paid | (6,328) | (6,051) | |
Proceeds from exercise of stock options | 206 | 303 | |
Other financing activities, net | (460) | (667) | |
Net cash provided by/(used in) financing activities | 4,138 | (6,045) | |
Effect of exchange-rate changes on cash and cash equivalents and restricted cash and cash equivalents | (39) | (41) | |
Net increase in cash and cash equivalents and restricted cash and cash equivalents | 277 | 1,620 | |
Cash and cash equivalents and restricted cash and cash equivalents, at beginning of period | 1,350 | 1,225 | |
Cash and cash equivalents and restricted cash and cash equivalents, at end of period | 1,627 | 2,846 | |
Cash paid (received) during the period for: | |||
Income taxes | 2,445 | 2,636 | |
Interest paid | 1,297 | 1,246 | |
Interest rate hedges | (45) | (78) | |
GSK Consumer Healthcare [Member] | |||
Adjustments to reconcile net income before allocation to noncontrolling interests to net cash provided by operating activities: | |||
Gain on completion of Consumer Healthcare JV transaction, net of cash conveyed | (8,200) | ||
Non-cash transactions: | |||
32% equity-method investment in GSK Consumer Healthcare JV in exchange for contributing Pfizer’s Consumer Healthcare business | [1] | $ 0 | $ 15,711 |
[1] | The $8.2 billion Gain on completion of Consumer Healthcare JV transaction , net of cash conveyed for the nine months ended September 29, 2019 reflects the receipt of a 32% equity-method investment in the new company valued at $15.7 billion in exchange for net assets contributed of $7.6 billion and is presented in operating activities net of $146 million cash conveyed that is reflected in Other investing activities, net . See Note 2B. |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (PARENTHETICAL) $ in Millions | 9 Months Ended | |
Sep. 29, 2019USD ($) | ||
Gain on completion of Consumer Healthcare JV transaction, net of cash conveyed | $ 8,233 | [1] |
GSK Consumer Healthcare [Member] | ||
Equity method investment, ownership percentage | 32.00% | |
Gain on completion of Consumer Healthcare JV transaction, net of cash conveyed | $ 8,200 | |
Fair value of equity method investment | 15,700 | |
Net assets contributed | 7,600 | |
Cash conveyed | $ 146 | |
[1] | The $8.2 billion Gain on completion of Consumer Healthcare JV transaction , net of cash conveyed for the nine months ended September 29, 2019 reflects the receipt of a 32% equity-method investment in the new company valued at $15.7 billion in exchange for net assets contributed of $7.6 billion and is presented in operating activities net of $146 million cash conveyed that is reflected in Other investing activities, net . See Note 2B. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Sep. 27, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies See the Glossary of Defined Terms at the beginning of this Quarterly Report on Form 10-Q for terms used throughout the condensed consolidated financial statements and related notes in this Quarterly Report on Form 10-Q. A. Basis of Presentation We prepared the condensed consolidated financial statements following the requirements of the SEC for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP can be condensed or omitted. The financial information included in our condensed consolidated financial statements for subsidiaries operating outside the U.S. is as of and for the three and nine months ended August 23, 2020 and August 25, 2019. The financial information included in our condensed consolidated financial statements for U.S. subsidiaries is as of and for the three and nine months ended September 27, 2020 and September 29, 2019. Revenues, expenses, assets and liabilities can vary during each quarter of the year. Therefore, the results and trends in these interim financial statements may not be representative of those for the full year. We are responsible for the unaudited financial statements included in this Quarterly Report on Form 10-Q. The interim financial statements include all normal and recurring adjustments that are considered necessary for the fair statement of results for the interim periods presented. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in our 2019 Financial Report. At the beginning of our 2019 fiscal year, we began to manage our commercial operations through a new global structure consisting of three business segments––Biopharma, Upjohn and through July 31, 2019, Consumer Healthcare. Biopharma and Upjohn are the only reportable segments. See Note 14 . Beginning in 2020, Upjohn began managing our Meridian subsidiary, the manufacturer of EpiPen and other auto-injector products, and a pre-existing strategic collaboration between Pfizer and Mylan for generic drugs in Japan (Mylan-Japan). As a result, revenues and expenses associated with Meridian and Mylan-Japan are reported in our Upjohn business beginning in the first quarter of 2020. In 2019, revenues and expenses from Meridian and Mylan-Japan were recorded in our Biopharma business. We performed certain reclassifications between the Biopharma and Upjohn segments to conform 2019 segment revenues and expenses associated with Meridian and Mylan-Japan to the current presentation. There was no impact to our consolidated financial statements. See Note 14. Acquisitions and other business development activities completed in 2019 and in the first nine months of 2020, including the contribution of our Consumer Healthcare business to the GSK Consumer Healthcare joint venture, impacted financial results in the periods presented. See Notes to Consolidated Financial Statements— Note 1A. Basis of Presentation and Significant Accounting Policies: Basis of Presentation in our 2019 Financial Report, and Note 2. Certain amounts in the condensed consolidated financial statements and associated notes may not add due to rounding. All percentages have been calculated using unrounded amounts. B. Adoption of New Accounting Standards in 2020 On January 1, 2020, we adopted four new accounting standards. Credit Losses on Financial Instruments ––We adopted a new accounting standard for credit losses on financial instruments, which replaces the probable initial recognition threshold for incurred loss estimates under prior guidance with a methodology that reflects expected credit loss estimates. The standard generally impacts financial assets that have a contractual right to receive cash and are not accounted for at fair value through net income, such as accounts receivable and held-to-maturity debt securities. The new guidance requires us to identify, analyze, document and support new methodologies for quantifying expected credit loss estimates for certain financial instruments, using information such as historical experience, current economic conditions and information, and the use of reasonable and supportable forecasted information. The standard also amends existing impairment guidance for available-for-sale debt securities to incorporate a credit loss allowance and allows for reversals of credit impairments in the event the issuer’s credit improves. We adopted the new accounting standard utilizing the modified retrospective method and, therefore, no adjustments were made to amounts in our prior period financial statements. The cumulative effect of adopting the standard as an adjustment to the opening balance of Retained earnings was not material. The impact of adoption did not have a material impact on our condensed consolidated statements of income for the three and nine months ended September 27, 2020 or condensed consolidated statement of cash flows for the nine months ended September 27, 2020, nor on our condensed consolidated balance sheet as of September 27, 2020. See Note 1C . Goodwill Impairment Testing ––We prospectively adopted the new standard, which eliminates the requirement to perform a hypothetical purchase price allocation to measure goodwill impairment. Under the new guidance, the goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount, and recognizing an impairment charge for the amount by which the carrying amount of the reporting unit exceeds its fair value. There was no impact to our condensed consolidated financial statements from the adoption of this new standard. Implementation Costs in a Cloud Computing Arrangement ––We prospectively adopted the new standard related to customers’ accounting for implementation costs incurred in a cloud computing arrangement that is considered a service contract. The new guidance aligns the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The adoption of this guidance did not have a material impact on our condensed consolidated financial statements. Collaboration Agreements ––We prospectively adopted the new standard, which provides new guidance clarifying the interaction between the accounting for collaborative arrangements and revenue from contracts with customers. There was no impact to our condensed consolidated financial statements from the adoption of this new standard. On January 1, 2019, we adopted four new accounting standards. For additional information, see Notes to Consolidated Financial Statements–– Note 1B. Basis of Presentation and Significant Accounting Policies: Adoption of New Accounting Standards in 2019 included in our 2019 Financial Report. C. Revenues and Trade Accounts Receivable Deductions from Revenues–– Our accruals for Medicare rebates, Medicaid and related state program rebates, performance-based contract rebates, chargebacks, sales allowances and sales returns and cash discounts are as follows: (MILLIONS OF DOLLARS) September 27, 2020 December 31, 2019 Reserve against Trade accounts receivable, less allowance for doubtful accounts $ 1,126 $ 1,257 Other current liabilities : Accrued rebates 3,270 3,285 Other accruals 573 581 Other noncurrent liabilities 622 565 Total accrued rebates and other accruals $ 5,591 $ 5,689 Trade Accounts Receivable–– Trade accounts receivable are stated at their net realizable value. The allowance for credit losses against gross trade accounts receivable reflects the best estimate of expected credit losses of the receivables portfolio determined on the basis of historical experience, current information, and forecasts of future economic conditions. In developing the estimate for expected credit losses, trade accounts receivables are segmented into pools of assets depending on market (U.S. versus international), delinquency status, and customer type (high risk versus low risk and government versus non-government), and fixed reserve percentages are established for each pool of trade accounts receivables. In determining the reserve percentages for each pool of trade accounts receivables, we considered our historical experience with certain customers and customer types, regulatory and legal environments, country and political risk, and other relevant current and future forecasted macroeconomic factors. These credit risk indicators are monitored on a quarterly basis to determine whether there have been any changes in the economic environment that would indicate the established reserve percentages should be adjusted, and are considered on a regional basis to reflect more geographic-specific metrics. Additionally, write-offs and recoveries of customer receivables are tracked against collections on a quarterly basis to determine whether the reserve percentages remain appropriate. When management becomes aware of certain customer-specific factors that impact credit risk, specific allowances for these known troubled accounts are recorded. Trade accounts receivable are written off after all reasonable means to collect the full amount (including litigation, where appropriate) have been exhausted. During the three and nine months ended September 27, 2020, additions to the allowance for credit losses, write-offs and recoveries of customer receivables were not material to our condensed consolidated financial statements. |
Acquisition, Equity-Method Inve
Acquisition, Equity-Method Investment and Licensing Arrangements | 9 Months Ended |
Sep. 27, 2020 | |
Business Combinations, Disposal Groups, Including Discontinued Operations, Equity Method Investments And Research And Development Arrangement [Abstract] | |
Acquisition, Equity-Method Investment and Licensing Arrangements | Acquisition, Equity-Method Investment and Licensing Arrangements A. Acquisition Array On July 30, 2019, we acquired Array, a commercial stage biopharmaceutical company focused on the discovery, development and commercialization of targeted small molecule medicines to treat cancer and other diseases of high unmet need, for $48 per share in cash. The total fair value of the consideration transferred was $11.2 billion ($10.9 billion, net of cash acquired). Array’s portfolio includes Braftovi (encorafenib) and Mektovi (binimetinib), a broad pipeline of targeted cancer medicines in different stages of R&D, as well as a portfolio of outlicensed medicines, which may generate milestones and royalties over time. The final allocation of the consideration transferred to the assets acquired and the liabilities assumed has now been completed. In connection with this acquisition, we recorded: (i) $6.3 billion in Identifiable intangible assets , consisting of $2.0 billion of Developed technology rights with a useful life of 16 years, $2.8 billion of IPR&D and $1.5 billion for Licensing agreements ($1.2 billion for technology in development –– indefinite-lived licensing agreements and $360 million for developed technology –– finite-lived licensing agreements with a useful life of 10 years), (ii) $6.1 billion of Goodwill , (iii) $1.1 billion of net deferred tax liabilities and (iv) $451 million of assumed long-term debt, which was paid in full in the third quarter of 2019. In 2020, we recorded measurement period adjustments to the estimated fair values initially recorded in 2019, which resulted in a reduction in Identifiable intangible assets of approximately $900 million with a corresponding change to Goodwill and net deferred tax liabilities. The measurement period adjustments were recorded to better reflect market participant assumptions about facts and circumstances existing as of the acquisition date and did not have a material impact on our condensed consolidated statement of income for the three and nine months ended September 27, 2020. B. Equity-Method Investment Formation of GSK Consumer Healthcare Joint Venture On July 31, 2019, we completed the transaction in which we and GSK combined our respective consumer healthcare businesses into a new consumer healthcare joint venture that operates globally under the GSK Consumer Healthcare name. In exchange for contributing our Consumer Healthcare business to the joint venture, we received a 32% equity stake in the new company and GSK owns the remaining 68%. Upon the closing of the transaction, we deconsolidated our Consumer Healthcare business and recognized a pre-tax gain of $8.1 billion ($5.4 billion, net of tax) in our fiscal third quarter of 2019 in (Gain) on completion of Consumer Healthcare JV transaction for the difference in the fair value of our 32% equity stake in the new company and the carrying value of our Consumer Healthcare business. We may record additional adjustments to the gain in future periods, which we do not expect to have a material impact on our consolidated financial statements. Our financial results, and our Consumer Healthcare segment’s operating results, for the third quarter of 2019 reflect one month of Consumer Healthcare segment domestic operations and two months of Consumer Healthcare segment international operations. Likewise, our financial results, and our Consumer Healthcare segment’s operating results, for the first nine months of 2019 reflect seven months of Consumer Healthcare segment domestic operations and eight months of Consumer Healthcare segment international operations. The financial results for the third quarter and first nine months of 2020 do not reflect any contribution from the Consumer Healthcare business. We are accounting for our interest in GSK Consumer Healthcare as an equity-method investment. The carrying value of our investment in GSK Consumer Healthcare is approximately $15.8 billion as of September 27, 2020 and $17.0 billion as of December 31, 2019 and is reported as a private equity investment in the Equity-method investments line in our condensed consolidated balance sheet. GSK Consumer Healthcare is a foreign investee whose reporting currency is the U.K. pound, and therefore we translate its financial statements into U.S. dollars and recognize the impact of foreign currency translation adjustments in the carrying value of our investment and in Other comprehensive income . The decrease in the value of our investment from December 31, 2019 to September 27, 2020 is primarily due to approximately $617 million in pre-tax foreign currency translation adjustments (see Note 6 ), as well as dividends totaling approximately $825 million, which were received from the GSK Consumer Healthcare joint venture in June and September 2020, partially offset by our share of the joint venture’s earnings during that period of $306 million. We record our share of earnings from the GSK Consumer Healthcare joint venture on a quarterly basis on a one-quarter lag in Other (income)/deductions––net commencing from August 1, 2019. Therefore, we recorded our share of the joint venture’s earnings generated in the second quarter of 2020, which totaled approximately $166 million, in our operating results in the third quarter of 2020. Our total share of the joint venture’s earnings generated in the fourth quarter of 2019 and the first six months of 2020, which we recorded in our operating results for the first nine months of 2020, was approximately $306 million. See Note 4 . As of the July 31, 2019 closing date, we estimated that the fair value of our investment in GSK Consumer Healthcare was approximately $15.7 billion and that 32% of the underlying equity in the carrying value of the net assets of GSK Consumer Healthcare was approximately $11.2 billion, resulting in an initial basis difference of approximately $4.5 billion. In the fourth quarter of 2019, we preliminarily completed the allocation of the basis difference, which resulted from the excess of the initial fair value of our investment over the underlying equity in the carrying value of the net assets of the joint venture, primarily to inventory, definite-lived intangible assets, indefinite-lived intangible assets, related deferred tax liabilities and equity method goodwill within the investment account. During the fourth quarter of 2019, GSK Consumer Healthcare revised the initial carrying value of the net assets of the joint venture and our 32% share of the underlying equity in the carrying value of the net assets of GSK Consumer Healthcare was reduced to approximately $11.0 billion and our initial basis difference was increased to approximately $4.8 billion. The adjustment was allocated to equity method goodwill within the investment account. We began recording the amortization of basis differences allocated to inventory, definite-lived intangible assets and related deferred tax liabilities in Other (income)/deductions—net commencing August 1, 2019. During the third quarter of 2020, we recognized a write-off of a portion of our basis differences allocated to indefinite-lived and definite-lived intangible assets and related deferred tax liabilities associated with the divestiture of certain brands by GSK Consumer Healthcare during its second quarter of 2020. The amortization and write-off of these basis differences for the second quarter of 2020 totaling approximately $62 million of expense is included in our operating results in Other (income)/deductions––net in the third quarter of 2020. The total amortization and write-off of these basis differences for the fourth quarter of 2019 and the first six months of 2020, which was included in our operating results in Other (income)/deductions—net in the first nine months of 2020, was approximately $110 million of expense. See Note 4. Amortization of basis differences on inventory and related deferred tax liabilities was completely recognized by the second quarter of 2020. Basis differences on definite-lived intangible assets and related deferred tax liabilities are being amortized over the lives of the underlying assets, which range from 8 to 20 years. As a part of Pfizer, pre-tax income on a management business unit basis for the Consumer Healthcare business was $100 million for the third quarter of 2019 and $654 million for the nine months ended September 29, 2019. Summarized financial information for our equity method investee, GSK Consumer Healthcare, as of and for the three and nine months ending June 30, 2020, the most recent period available, is as follows: (MILLIONS OF DOLLARS) June 30, Current assets $ 7,136 Noncurrent assets 37,108 Total assets $ 44,244 Current liabilities $ 4,992 Noncurrent liabilities 5,195 Total liabilities $ 10,187 Equity attributable to shareholders $ 33,919 Equity attributable to noncontrolling interests 138 Total net equity $ 34,057 (MILLIONS OF DOLLARS) Three Months Ended June 30, 2020 Nine Months Ended Net sales $ 2,927 $ 9,618 Cost of sales (1,061) (4,266) Gross profit $ 1,866 $ 5,352 Income from continuing operations 524 995 Net income 524 995 Income attributable to shareholders 518 959 C. Licensing Arrangements Agreement with Valneva SE On April 30, 2020, we signed an agreement to co-develop and commercialize Valneva’s Lyme disease vaccine candidate VLA15. VLA15 is the only active Lyme disease vaccine program in clinical development today, and covers six serotypes that are prevalent in North America and Europe. Valneva and Pfizer will work closely together throughout the development of VLA15. Valneva is eligible to receive a total of $308 million in cash payments consisting of a $130 million upfront payment, which was paid and recorded in Research and development expenses in our fiscal second quarter of 2020, as well as $35 million in development milestones and $143 million in early commercialization milestones. Under the terms of the agreement, Valneva will fund 30% of all development costs through completion of the development program, and in return we will pay Valneva tiered royalties. We will lead late-stage development and have sole control over commercialization. Agreement with BioNTech On April 9, 2020, we signed a global agreement with BioNTech to co-develop a potential first-in-class, mRNA-based coronavirus vaccine program, BNT162, aimed at preventing COVID-19 infection. The collaboration aims to rapidly advance multiple COVID-19 vaccine candidates into human clinical testing based on BioNTech’s proprietary mRNA vaccine platforms, with the objective of ensuring rapid worldwide access to the vaccine, if approved. The collaboration leverages our broad expertise in vaccine R&D, regulatory capabilities, and global manufacturing and distribution network. In connection with the agreement, we paid BioNTech an upfront cash payment of $72 million, which was recorded in Research and development expenses in our fiscal second quarter of 2020, and we made an equity investment of $113 million in common stock of BioNTech. BioNTech is eligible to receive potential future milestone payments of up to $563 million for a total consideration of $748 million. While Pfizer and BioNTech will share development costs equally if the vaccine is approved and successfully commercialized, Pfizer will be responsible for all of the development costs until commercialization of the vaccine. Thereafter, BioNTech would repay Pfizer its 50 percent share of these development costs through reductions in gross profit sharing and milestone payments to BioNTech over time. BioNTech and Pfizer will also work jointly to commercialize the vaccine worldwide (excluding China, Hong Kong, Macau and Taiwan, which are subject to a separate collaboration between BioNTech and Shanghai Fosun Pharmaceutical (Group) Co., Ltd) if development is successful and regulatory approval is obtained. We made an additional investment of $50 million in common stock of BioNTech as part of an underwritten equity offering by BioNTech, which closed in July 2020. |
Restructuring Charges and Other
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives | 9 Months Ended |
Sep. 27, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives | Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives We incur significant costs in connection with acquiring, integrating and restructuring businesses and in connection with our global cost-reduction/productivity initiatives. For example: • In connection with acquisition activity, we typically incur costs associated with executing the transactions, integrating the acquired operations (which may include expenditures for consulting and the integration of systems and processes), and restructuring the combined company (which may include charges related to employees, assets and activities that will not continue in the combined company); and • In connection with our cost-reduction/productivity initiatives, we typically incur costs and charges associated with site closings and other facility rationalization actions, workforce reductions and the expansion of shared services, including the development of global systems. All of our businesses and functions may be impacted by these actions, including sales and marketing, manufacturing and R&D, as well as our corporate enabling functions (such as digital, global real estate operations, legal, finance, human resources, worldwide public affairs, compliance and worldwide procurement). Transforming to a More Focused Company Program With the formation of the GSK Consumer Healthcare joint venture and the anticipated combination of Upjohn, our global, primarily off-patent branded and generics business, with Mylan, Pfizer is transforming into a more focused, global leader in science-based innovative medicines. Accordingly, in the fourth quarter of 2019, we began to identify and undertake efforts to ensure our cost base aligns appropriately with our Biopharmaceutical revenue base as a result of both the completed GSK Consumer Healthcare and expected Upjohn transactions. While certain direct costs have transferred or will transfer to the GSK Consumer Healthcare joint venture and to the Upjohn entities, there are indirect costs which are not expected to transfer. In addition, we are taking steps to restructure our organizations to appropriately support and drive the purpose of the three core functions of our focused innovative medicines business: R&D, Manufacturing and Commercial. We expect corporate enabling function costs associated with this multi-year program to be incurred from 2020 through 2022 and to total approximately $1.2 billion on a pre-tax basis, with substantially all costs to be cash expenditures. Actions may include, among others, changes in location of certain activities, expanded use and co-location of centers of excellence and shared services, and increased use of digital technologies. The associated actions and the specific costs will primarily include severance and benefit plan impacts, exit costs as well as associated implementation costs. Also as part of this program, we expect to incur costs related to manufacturing network optimization, including certain legacy cost-reduction initiatives, of approximately $500 million, with approximately 20% of the costs to be non-cash. The costs associated with this effort are expected to be incurred primarily from 2020 through 2022, and will include, among other things, implementation costs, product transfer costs, site exit costs, as well as accelerated depreciation. From the start of this program in the fourth quarter of 2019 through September 27, 2020, we incurred approximately $600 million associated with this program. Current-Period Key Activities For the first nine months of 2020, we incurred costs of $621 million composed primarily of the Transforming to a More Focused Company program. For the first nine months of 2019, we incurred costs of $452 million composed of $300 million associated with the 2017-2019 and Organizing for Growth initiatives, $272 million associated with the integration of Array, and $74 million associated with the integration of Hospira, partially offset by income of $194 million, primarily due to the reversal of certain accruals upon the effective favorable settlement of an IRS audit for multiple tax years and other acquisition-related initiatives. The following summarizes acquisitions and cost-reduction/productivity initiatives costs and credits: Three Months Ended Nine Months Ended (MILLIONS OF DOLLARS) September 27, September 29, September 27, September 29, Restructuring charges/(credits): Employee terminations $ (15) $ 82 $ 357 $ (86) Asset impairments 22 3 45 3 Exit costs/(credits) (11) (1) (9) 33 Restructuring charges/(credits) (a) (4) 83 392 (50) Transaction costs (b) — 65 14 65 Integration costs and other (c) 7 217 29 281 Restructuring charges and certain acquisition-related costs 4 365 435 295 Net periodic benefit costs recorded in Other (income)/deductions––net — 9 29 19 Additional depreciation––asset restructuring recorded in our condensed consolidated statements of income as follows (d) : Cost of sales 4 6 14 21 Selling, informational and administrative expenses — — — 2 Research and development expenses — — (3) 6 Total additional depreciation––asset restructuring 4 6 10 29 Implementation costs recorded in our condensed consolidated statements of income as follows (e) : Cost of sales 11 14 32 45 Selling, informational and administrative expenses 36 23 114 48 Research and development expenses 1 3 2 16 Total implementation costs 48 40 148 109 Total costs associated with acquisitions and cost-reduction/productivity initiatives $ 56 $ 420 $ 621 $ 452 (a) In the first nine months of 2020, restructuring charges mainly represent employee termination costs associated with our Transforming to a More Focused Company cost-reduction program. In the third quarter of 2019, restructuring charges mainly represented employee termination costs associated with cost-reduction and productivity initiatives as well as our acquisition of Array. In the first nine months of 2019, restructuring credits mostly represented the reversal of certain accruals related to our acquisition of Wyeth upon the effective favorable settlement of an IRS audit for multiple tax years, partially offset by employee termination costs associated with cost-reduction and productivity initiatives, as well as our acquisition of Array. See Notes to Consolidated Financial Statements–– Note 5D. Tax Matters: Tax Contingencies in our 2019 Financial Report. The restructuring activities for 2020 are associated with the following: • For the third quarter of 2020, Biopharma ($6 million charge); Upjohn ($3 million credit); and Other ($7 million credit). • For the first nine months of 2020, Biopharma ($3 million credit); Upjohn ($10 million charge); and Other ($386 million charge). The restructuring activities for 2019 are associated with the following: • For the third quarter of 2019, Biopharma ($10 million charge); Upjohn ($6 million credit); and Other ($79 million charge). • For the first nine months of 2019, Biopharma ($38 million credit); Upjohn ($27 million credit); and Other ($15 million charge). Restructuring costs identified as Other are for restructuring activities associated with corporate enabling functions, WRDM, GPD and other manufacturing and commercial operations, as applicable. For the first nine months of 2020, restructuring costs identified as Other primarily relate to corporate enabling functions. (b) Transaction costs represent external costs for banking, legal, accounting and other similar services. (c) Integration costs and other represent external, incremental costs directly related to integrating acquired businesses, such as expenditures for consulting and the integration of systems and processes, and certain other qualifying costs. In the third quarter and first nine months of 2020, integration costs and other were mostly related to our acquisition of Array. In the third quarter and first nine months of 2019, integration costs and other primarily included $157 million in payments to Array employees for the fair value of previously unvested stock options that was recognized as post-closing compensation expense. See Notes to Consolidated Financial Statements–– Note 2A. Acquisitions, Divestitures, Equity-Method Investments and Assets and Liabilities Held for Sale, Licensing Arrangements and Research and Development and Collaborative Arrangements: Acquisitions in our 2019 Financial Report. (d) Additional depreciation––asset restructuring represents the impact of changes in the estimated useful lives of assets involved in restructuring actions. (e) Implementation costs represent external, incremental costs directly related to implementing our non-acquisition-related cost-reduction/productivity initiatives. The following summarizes the components and changes in restructuring accruals: (MILLIONS OF DOLLARS) Employee Asset Exit Costs Accrual Balance, December 31, 2019 (a) $ 887 $ — $ 46 $ 933 Provision 357 45 (9) 392 Utilization and other (b) (411) (45) (23) (479) Balance, September 27, 2020 (c) $ 832 $ — $ 14 $ 847 (a) Included in Other current liabilities ($714 million) and Other noncurrent liabilities ($219 million). (b) Includes adjustments for foreign currency translation. (c) Included in Other current liabilities ($607 million) and Other noncurrent liabilities ($240 million). |
Other (Income)_Deductions - Net
Other (Income)/Deductions - Net | 9 Months Ended |
Sep. 27, 2020 | |
Other Income and Expenses [Abstract] | |
Other (Income)/Deductions - Net | Other (Income)/Deductions—Net Components of Other (income)/deductions––net include: Three Months Ended Nine Months Ended (MILLIONS OF DOLLARS) September 27, September 29, September 27, September 29, Interest income (a) $ (17) $ (60) $ (70) $ (185) Interest expense (a) 416 409 1,178 1,158 Net interest expense 399 348 1,108 973 Royalty-related income (214) (155) (525) (475) Net gains on asset disposals (2) (32) — (33) Net (gains)/losses recognized during the period on equity securities (b) 70 (6) (408) (153) Income from collaborations, out-licensing arrangements and sales of compound/product rights (c) (30) (20) (245) (124) Net periodic benefit costs/(credits) other than service costs (d) 54 (19) (122) (110) Certain legal matters, net 38 64 64 84 Certain asset impairments (e) 900 28 900 188 Business and legal entity alignment costs (f) — 87 — 343 Net losses on early retirement of debt — — — 138 GSK Consumer Healthcare JV equity method (income)/loss (g) (103) — (196) — Other, net (h) 38 24 (69) (294) Other (income)/deductions––net $ 1,148 $ 319 $ 507 $ 537 (a) Interest income decreased in the third quarter and first nine months of 2020, primarily driven by a lower investment balance and lower short-term rates. Interest expense remained relatively flat in the third quarter and first nine months of 2020, mainly as a result of the issuance of new debt related to the planned combination of Mylan and Upjohn, offset by lower rates on commercial paper. See Note 7D . (b) The losses in the third quarter of 2020 include, among other things, unrealized losses of $131 million related to our investment in Allogene. The gains in the first nine months of 2020 include, among other things, unrealized gains of $243 million related to our investment in Allogene and unrealized gains of $154 million related to our investment in BioNTech. The gains in the first nine months of 2019 included, among other things, unrealized gains of $115 million related to our investments in Cortexyme, Inc. and SpringWorks Therapeutics, Inc. For additional information on investments, see Note 7B . (c) Includes income from upfront and milestone payments from our collaboration partners and income from out-licensing arrangements and sales of compound/product rights. The first nine months of 2020 mainly includes, among other things, (i) an upfront payment to us of $75 million from our sale of our CK1 assets to Biogen, Inc., (ii) $40 million of milestone income from Puma Biotechnology, Inc. related to Neratinib regulatory approvals in the EU and (iii) $30 million of milestone income from Lilly related to the first commercial sale in the U.S. of LOXO-292 for the treatment of RET fusion-positive NSCLC. The first nine months of 2019 primarily included, among other things, $70 million in milestone income from Mylan Pharmaceuticals Inc. related to the FDA’s approval and launch of Wixela Inhub ® , a generic of Advair Diskus ® . (d) See Note 10 . (e) The third quarter and first nine months of 2020 include intangible asset impairment charges of $900 million related to Biopharma IPR&D assets for unapproved indications of certain cancer medicines, acquired in connection with our Array acquisition, and reflect, among other things, updated commercial forecasts. The first nine months of 2019 included intangible asset impairment charges of: (i) $90 million related to WRDM IPR&D, for a pre-clinical stage asset from our acquisition of Bamboo for gene therapies for the potential treatment of patients with certain rare diseases, which was the result of a determination to not use certain Bamboo IPR&D acquired in future rare disease development, (ii) $40 million related to an Upjohn finite-lived developed technology right, acquired in connection with our acquisition of King, for government defense products and reflected, among other things, updated commercial forecasts including manufacturing cost assumptions, and (iii) $10 million related to a Biopharma finite-lived developed technology right, acquired in connection with our acquisition of Anacor, for the treatment for toenail fungus marketed in the U.S. market only, and reflected, among other things, updated commercial forecasts. The first nine months of 2019 also included other asset impairments of $48 million . (f) In the third quarter and first nine months of 2019, represents incremental costs associated with the design, planning and implementation of our new organizational structure, effective in the beginning of 2019, and primarily includes consulting, legal, tax and advisory services. (g) The income for the third quarter and first nine months of 2020 represents our pro-rata share of earnings from the GSK Consumer Healthcare joint venture, partially offset by equity method basis difference write-offs and amortization. See Note 2B . (h) The third quarter of 2020 includes, among other things, charges of $144 million related to the remeasurement of Euro debt issued by Upjohn Finance B.V. in the second quarter of 2020 (see Note 7D ) and dividend income of $44 million from our investment in ViiV. The first nine months of 2020 includes, among other things, dividend income of $196 million from our investment in ViiV and charges of $110 million, reflecting the change in the fair value of contingent consideration. The third quarter of 2019 included, among other things, dividend income of $43 million from our investment in ViiV and charges of $121 million for external incremental costs, such as transaction costs and costs to separate our Consumer Healthcare business into a separate legal entity, associated with the formation of the GSK Consumer Healthcare joint venture. The first nine months of 2019 included, among other things, (i) dividend income of $184 million from our investment in ViiV, (ii) charges of $146 million for external incremental costs, such as transaction costs and costs to separate our Consumer Healthcare business into a separate legal entity, associated with the formation of the GSK Consumer Healthcare joint venture, and (iii) $50 million of income from insurance recoveries related to Hurricane Maria. Additional information about the intangible assets that were impaired during 2020 in Other (income)/deductions follows : Fair Value (a) Nine Months Ended September 27, 2020 (MILLIONS OF DOLLARS) Amount Level 1 Level 2 Level 3 Impairment Intangible assets –– IPR&D (b) $ 1,100 $ — $ — $ 1,100 $ 900 (a) The fair value amount is presented as of the date of impairment, as these assets are not measured at fair value on a recurring basis. (b) Reflects intangible assets written down to fair value in the first nine months of 2020. Fair value was determined using the income approach, specifically the multi-period excess earnings method, also known as the discounted cash flow method. We started with a forecast of all the expected net cash flows associated with the asset and then applied an asset-specific discount rate to arrive at a net present value amount. Some of the more significant estimates and assumptions inherent in this approach include: the amount and timing of the projected net cash flows, which includes the expected impact of competitive, legal and/or regulatory forces on the product; the discount rate, which seeks to reflect the various risks inherent in the projected cash flows; and the tax rate, which seeks to incorporate the geographic diversity of the projected cash flows. |
Tax Matters
Tax Matters | 9 Months Ended |
Sep. 27, 2020 | |
Income Tax Disclosure [Abstract] | |
Tax Matters | Tax Matters A. Taxes on Income from Continuing Operations Our effective tax rate for continuing operations was (1.2)% for the third quarter of 2020, compared to 28.4% for the third quarter of 2019 and was 9.7% for the first nine months of 2020, compared to 13.4% for the first nine months of 2019. The lower effective tax rate for the third quarter of 2020 in comparison with the same period in 2019 was primarily due to: • the non-recurrence of the tax expense of $2.7 billion recorded in the third quarter of 2019 associated with the gain related to the completion of the GSK Consumer Healthcare joint venture transaction; • tax benefits associated with intangible asset impairment charges of $900 million related to Biopharma IPR&D acquired in connection with our Array acquisition; and • the favorable change in the jurisdictional mix of earnings as a result of operating fluctuations in the normal course of business. The lower effective tax rate for the first nine months of 2020 in comparison with the same period in 2019 was primarily due to the aforementioned factors above, partially offset by: • the non-recurrence of the $1.4 billion tax benefits, representing taxes and interest, recorded in the first nine months of 2019 due to the favorable settlement of an IRS audit for multiple tax years (see Notes to Consolidated Financial Statements–– Note 5D. Tax Matters: Tax Contingencies in our 2019 Financial Report); and • the non-recurrence of the tax benefit recorded in the first nine months of 2019 as a result of additional guidance issued by the U.S. Department of Treasury related to the TCJA. We have elected, with the filing of our 2018 U.S. Federal Consolidated Income Tax Return, to pay our initial estimated $15 billion repatriation tax liability on accumulated post-1986 foreign earnings over eight years through 2026. The third annual installment of this liability, which is due to be paid in April 2021, is reported in current Income taxes payable , and the remaining liability is reported in noncurrent Other taxes payable in our condensed consolidated balance sheet as of September 27, 2020. Our obligations may vary as a result of changes in our uncertain tax positions and/or availability of attributes such as foreign tax and other credit carryforwards. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law in the U.S. to provide certain relief as a result of the COVID-19 pandemic. In addition, governments around the world have enacted or implemented various forms of tax relief measures in response to the economic conditions in the wake of COVID-19. As of September 27, 2020, neither the CARES Act nor changes to income tax laws or regulations in other jurisdictions had a significant impact on our effective tax rate. B. Tax Contingencies We are subject to income tax in many jurisdictions, and a certain degree of estimation is required in recording the assets and liabilities related to income taxes. All of our tax positions are subject to audit by the local taxing authorities in each tax jurisdiction. These tax audits can involve complex issues, interpretations and judgments and the resolution of matters may span multiple years, particularly if subject to negotiation or litigation. Our assessments are based on estimates and assumptions that have been deemed reasonable by management, but our estimates of unrecognized tax benefits and potential tax benefits may not be representative of actual outcomes, and variation from such estimates could materially affect our financial statements in the period of settlement or when the statutes of limitations expire, as we treat these events as discrete items in the period of resolution. The U.S. is one of our major tax jurisdictions, and we are regularly audited by the IRS. With respect to Pfizer, the IRS has issued a Revenue Agent’s Report (RAR) for tax years 2011-2013. We are not in agreement with the RAR and are currently appealing certain disputed issues. Tax years 2014-2015 are currently under audit. Tax years 2016-2020 are open, but not under audit. All other tax years are closed. In addition to the open audit years in the U.S., we have open audit years in other major tax jurisdictions, such as Canada (2013-2020), Japan (2017-2020), Europe (2011-2020, primarily reflecting Ireland, the U.K., France, Italy, Spain and Germany), Latin America (1998-2020, primarily reflecting Brazil) and Puerto Rico (2016-2020). C. Tax Provision/(Benefit) on Other Comprehensive Income/(Loss) Components of Tax provision/(benefit) on other comprehensive income/(loss) include: Three Months Ended Nine Months Ended (MILLIONS OF DOLLARS) September 27, September 29, September 27, September 29, Foreign currency translation adjustments, net (a) $ 47 $ 86 $ (144) $ 96 Unrealized holding gains/(losses) on derivative financial instruments, net (43) 31 (126) 37 Reclassification adjustments for (gains)/losses included in net income 7 (3) (13) (62) (37) 28 (139) (24) Unrealized holding gains/(losses) on available-for-sale securities, net 30 2 29 6 Reclassification adjustments for (gains)/losses included in net income (11) (1) (3) 4 19 1 26 10 Benefit plans: actuarial gains/(losses), net (288) (41) (308) (42) Reclassification adjustments related to amortization 15 23 46 41 Reclassification adjustments related to settlements, net 40 9 52 10 Other (48) (1) (28) 2 (281) (10) (238) 12 Reclassification adjustments related to amortization of prior service costs and other, net (11) (11) (32) (33) Reclassification adjustments related to curtailments of prior service costs and other, net — (11) — (11) Other (1) 1 1 1 (11) (21) (31) (43) Tax provision/(benefit) on other comprehensive income/(loss) $ (262) $ 84 $ (527) $ 50 (a) Taxes are not provided for foreign currency translation adjustments relating to investments in international subsidiaries that will be held indefinitely. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss, Excluding Noncontrolling Interests | 9 Months Ended |
Sep. 27, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss, Excluding Noncontrolling Interests | Accumulated Other Comprehensive Loss, Excluding Noncontrolling Interests The following summarizes the changes, net of tax, in Accumulated other comprehensive loss : Net Unrealized Gains/(Losses) Benefit Plans (MILLIONS OF DOLLARS) Foreign Currency Translation Adjustments Derivative Financial Instruments Available-For-Sale Securities Actuarial Gains/(Losses) Prior Service (Costs)/Credits and Other Accumulated Other Comprehensive Income/(Loss) Balance, December 31, 2019 $ (5,952) $ 20 $ (35) $ (6,257) $ 584 $ (11,640) Other comprehensive income/(loss) (a) 249 (546) 179 (817) (102) (1,036) Balance, September 27, 2020 $ (5,703) $ (526) $ 144 $ (7,074) $ 482 $ (12,676) (a) Amounts do not include foreign currency translation adjustments attributable to noncontrolling interests of $9 million loss for the first nine months of 2020. Foreign currency translation adjustments primarily include gains from the strengthening of certain major currencies against the U.S. dollar, partially offset by net after-tax losses related to foreign currency translation adjustments and the impact of our net investment hedging program, both attributable to our equity method investment in GSK Consumer Healthcare joint venture (see Note 2B ). The actuarial gains/(losses) activity mainly reflects interim U.S. Pfizer Consolidated Pension remeasurements, which resulted in an increase of $1.2 billion in the pension plan liability, primarily due to a reduction in the discount rate since December 31, 2019. |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 27, 2020 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | Financial Instruments A. Fair Value Measurements Financial Assets and Liabilities Measured at Fair Value using a Market Approach on a Recurring Basis and Fair Value Hierarchy: September 27, 2020 December 31, 2019 (MILLIONS OF DOLLARS) Total Level 1 Level 2 Total Level 1 Level 2 Financial assets: Short-term investments Classified as equity securities with readily determinable fair values: Money market funds (a) $ 12,273 $ — $ 12,273 $ 705 $ — $ 705 Classified as available-for-sale debt securities: Government and agency—non-U.S. 5,906 — 5,906 4,863 — 4,863 Government and agency—U.S. 582 — 582 811 — 811 Corporate and other 1,371 — 1,371 1,013 — 1,013 7,859 — 7,859 6,687 — 6,687 Total short-term investments 20,132 — 20,132 7,392 — 7,392 Other current assets Derivative assets: Interest rate contracts 16 — 16 53 — 53 Foreign exchange contracts 321 — 321 413 — 413 Total other current assets 337 — 337 465 — 465 Long-term investments Classified as equity securities with readily determinable fair values (b) 2,092 2,063 28 1,902 1,863 39 Classified as available-for-sale debt securities: Government and agency—U.S. 142 — 142 303 — 303 Corporate and other 7 — 7 11 — 11 149 — 149 315 — 315 Total long-term investments 2,241 2,063 178 2,216 1,863 354 Other noncurrent assets Derivative assets: Interest rate contracts 131 — 131 266 — 266 Foreign exchange contracts 100 — 100 261 — 261 Total derivative assets 231 — 231 526 — 526 Insurance contracts (c) 626 — 626 575 — 575 Total other noncurrent assets 857 — 857 1,102 — 1,102 Total assets $ 23,567 $ 2,063 $ 21,504 $ 11,176 $ 1,863 $ 9,313 Financial liabilities: Other current liabilities Derivative liabilities: Foreign exchange contracts $ 464 $ — $ 464 $ 114 $ — $ 114 Total other current liabilities 464 — 464 114 — 114 Other noncurrent liabilities Derivative liabilities: Foreign exchange contracts 808 — 808 604 — 604 Total other noncurrent liabilities 808 — 808 604 — 604 Total liabilities $ 1,272 $ — $ 1,272 $ 718 $ — $ 718 (a) As of September 27, 2020, $11.4 billion of proceeds from the Upjohn debt transactions (see Note 7D ) are invested in money market funds and included in Restricted short-term investments in the condensed consolidated balance sheet. (b) As of September 27, 2020, long-term equity securities of $181 million and as of December 31, 2019, long-term equity securities of $176 million were held in restricted trusts for employee benefit plans. (c) Includes life insurance policies held in restricted trusts attributable to the funding of various U.S. non-qualified employee benefit plans. The underlying invested assets in these insurance contracts are marketable securities, which are carried at fair value, with changes in fair value recognized in Other (income)/deductions—net in the condensed consolidated statements of income (see Note 4 ) . Financial Assets and Liabilities Not Measured at Fair Value on a Recurring Basis The following summarizes the financial liabilities not measured at fair value on a recurring basis, including the carrying values and estimated fair values using a market approach: September 27, 2020 December 31, 2019 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value (MILLIONS OF DOLLARS) Total Level 2 Total Level 2 Financial Liabilities Long-term debt, excluding the current portion (a) $ 49,785 $ 59,073 $ 59,073 $ 35,955 $ 40,842 $ 40,842 (a) As of September 27, 2020, $11.4 billion of proceeds from the Upjohn debt transactions (see Note 7D ) are invested in money market funds and included in Restricted short-term investments in the condensed consolidated balance sheet. The differences between the estimated fair values and carrying values of held-to-maturity debt securities, private equity securities, and short-term borrowings not measured at fair value on a recurring basis were not significant as of September 27, 2020 and December 31, 2019. The fair value measurements of our held-to-maturity debt securities and our short-term borrowings are based on Level 2 inputs. The fair value measurements of our private equity securities, which represent investments in the life sciences sector are based on Level 3 inputs using a market approach. In addition, as of September 27, 2020 and December 31, 2019, we had long-term receivables whose fair value is based on Level 3 inputs; the differences between the estimated fair values and carrying values of these receivables were not significant. Total Short-Term and Long-Term Investments and Equity-Method Investments The following summarizes our investments by classification type: (MILLIONS OF DOLLARS) September 27, 2020 December 31, 2019 Short-term investments Equity securities with readily determinable fair values (a) $ 12,273 $ 705 Available-for-sale debt securities 7,859 6,687 Held-to-maturity debt securities 193 1,133 Total Short-term investments $ 20,325 $ 8,525 Long-term investments Equity securities with readily determinable fair values $ 2,092 $ 1,902 Available-for-sale debt securities 149 315 Held-to-maturity debt securities 37 42 Private equity securities at cost 780 756 Total Long-term investments $ 3,059 $ 3,014 Equity-method investments 15,949 17,133 Total long-term investments and equity-method investments $ 19,008 $ 20,147 Held-to-maturity cash equivalents $ 130 $ 163 (a) As of September 27, 2020 and December 31, 2019, included money market funds primarily invested in U.S. Treasury and government debt. As of September 27, 2020, $11.4 billion of proceeds from the Upjohn debt transactions (see Note 7D ) are invested in money market funds and included in Restricted short-term investments in the condensed consolidated balance sheet. B. Investments Debt Securities At September 27, 2020, our investment securities portfolio consisted of debt securities that were virtually all investment-grade. Information on investments in debt securities at September 27, 2020 and December 31, 2019 is as follows, including the contractual maturities, or as necessary, the estimated maturities, of the available-for-sale and held-to-maturity debt securities as of September 27, 2020: September 27, 2020 December 31, 2019 Gross Unrealized Maturities (in Years) Gross Unrealized (MILLIONS OF DOLLARS) Amortized Cost Gains Losses Fair Value Within 1 Over 1 Over 5 Total Amortized Cost Gains Losses Fair Value Available-for-sale debt securities Government and agency –– non-U.S. $ 5,743 $ 164 $ (1) $ 5,906 $ 5,906 $ — $ — $ 5,906 $ 4,895 $ 6 $ (38) $ 4,863 Government and agency––U.S. 726 — (1) 725 582 142 — 725 1,120 — (6) 1,114 Corporate and other (a) 1,379 3 (5) 1,378 1,371 7 — 1,378 1,027 — (2) 1,025 Held-to-maturity debt securities Time deposits and other 290 — — 290 258 10 23 290 535 — — 535 Government and agency –– non-U.S. 70 — — 70 65 — 5 70 803 — — 803 Total debt securities $ 8,208 $ 168 $ (7) $ 8,369 $ 8,182 $ 159 $ 28 $ 8,369 $ 8,380 $ 6 $ (47) $ 8,340 (a) Primarily issued by a diverse group of corporations. For our portfolio of available-for-sale and held-to-maturity debt securities, any expected credit losses would be immaterial to the financial statements. Equity Securities The following presents the calculation of the portion of unrealized (gains)/losses that relates to equity securities, excluding equity method investments, still held at the reporting date: Three Months Ended Nine Months Ended (MILLIONS OF DOLLARS) September 27, September 29, September 27, September 29, Net (gains)/losses recognized during the period on equity securities (a ) $ 70 $ (6) $ (408) $ (153) Less: Net (gains)/losses recognized during the period on equity securities sold during the period 2 (3) (16) (13) Net unrealized (gains)/losses during the reporting period on equity securities still held at the reporting date (b) $ 68 $ (3) $ (391) $ (140) (a) Reported in Other (income)/deductions –– net. See Note 4 . (b) Included in net unrealized gains are observable price changes on equity securities without readily determinable fair values. Since January 1, 2018, there were cumulative impairments and downward adjustments of $82 million and upward adjustments of $63 million. Impairments, downward and upward adjustments were not significant in the third quarters and the first nine months of 2020 and 2019. C. Short-Term Borrowings Short-term borrowings include: (MILLIONS OF DOLLARS) September 27, December 31, 2019 Commercial paper $ 10,990 $ 13,915 Current portion of long-term debt, principal amount 2,152 1,458 Other short-term borrowings, principal amount (a) 226 860 Total short-term borrowings, principal amount 13,367 16,233 Net fair value adjustments related to hedging and purchase accounting — 5 Net unamortized discounts, premiums and debt issuance costs (4) (43) Total Short-term borrowings, including current portion of long-term debt , carried at historical proceeds, as adjusted $ 13,363 $ 16,195 (a) Other short-term borrowings primarily include cash collateral. See Note 7E . D. Long-Term Debt New Issuances In the second quarter of 2020, we issued the following senior unsecured notes: (MILLIONS OF DOLLARS) Principal Interest Rate Maturity Date As of Pfizer Inc. (a) 0.800% May 28, 2025 $ 750 1.700% May 28, 2030 1,000 2.550% May 28, 2040 1,000 2.700% May 28, 2050 1,250 $ 4,000 Upjohn Inc., a wholly-owned subsidiary of Pfizer Inc. (b) 1.125% June 22, 2022 $ 1,000 1.650% June 22, 2025 750 2.300% June 22, 2027 750 2.700% June 22, 2030 1,450 3.850% June 22, 2040 1,500 4.000% June 22, 2050 2,000 $ 7,450 Upjohn Finance B.V., a wholly-owned subsidiary of Upjohn Inc. (b) 0.816% June 23, 2022 € 750 1.023% June 23, 2024 750 1.362% June 23, 2027 850 1.908% June 23, 2032 1,250 € 3,600 (a) The notes may be redeemed by us at any time, in whole, or in part, at varying redemption prices plus accrued and unpaid interest. The weighted-average effective interest rate for the notes at issuance was 2.11%. (b) In June 2020, Upjohn Inc. and Upjohn Finance B.V. completed privately placed debt offerings in connection with the previously announced proposed Reverse Morris Trust transaction that will ultimately combine Upjohn and Mylan to form a new company, Viatris. The notes may be redeemed by Upjohn Inc. and Upjohn Finance B.V., as applicable, at any time, in whole, or in part, at varying redemption prices plus accrued and unpaid interest. The weighted-average effective interest rates at issuance were 2.95% for the $7.45 billion notes and 1.37% for the €3.60 billion notes. If the proposed transaction with Mylan does not close on or prior to February 1, 2021, or if, prior to such date, Upjohn Inc. and Mylan notify the trustee that the business combination agreement for the proposed transaction with Mylan is terminated, or the transaction will not otherwise be pursued, the notes must be redeemed at redemption prices equal to 101% of their respective principal amounts, plus accrued and unpaid interest. Pfizer has guaranteed these notes, and such guarantees will automatically and unconditionally terminate without the consent of holders of the notes upon the proposed distribution to Pfizer’s stockholders of all of the issued and outstanding shares of Upjohn Inc.’s common stock held by Pfizer (the Distribution). Upjohn Inc. has guaranteed the notes issued by Upjohn Finance B.V., and Upjohn Inc. will remain a guarantor of such notes post Distribution. Following the separation, Upjohn Inc. and Upjohn Finance B.V., as applicable, will remain the obligor. The proceeds from the financings will be used in part to fund a cash distribution from Upjohn Inc. to Pfizer immediately prior to the Distribution. In the interim, the $11.4 billion of proceeds are classified as Restricted short-term investments in the condensed consolidated balance sheet as of September 27, 2020 pursuant to the terms of the transaction agreements. In the first quarter of 2020, we issued the following senior unsecured notes at a weighted average effective interest rate of 2.67%: (MILLIONS OF DOLLARS) Principal Interest Rate Maturity Date As of 2.625% (a) April 1, 2030 $ 1,250 (a) The notes may be redeemed by us at any time, in whole, or in part, at a redemption price plus accrued and unpaid interest. The following summarizes the aggregate principal amount of our senior unsecured long-term debt, and adjustments to report our aggregate long-term debt: (MILLIONS OF DOLLARS) September 27, December 31, 2019 Total long-term debt, principal amount (a) $ 48,473 $ 34,820 Net fair value adjustments related to hedging and purchase accounting 1,621 1,305 Net unamortized discounts, premiums and debt issuance costs (314) (176) Other long-term debt 5 5 Total long-term debt, carried at historical proceeds, as adjusted $ 49,785 $ 35,955 Current portion of long-term debt, carried at historical proceeds, as adjusted (not included above) $ 2,149 $ 1,462 (a) As of September 27, 2020, $11.4 billion of proceeds from the Upjohn debt transactions are invested in money market funds and included in Restricted short-term investments in the condensed consolidated balance sheet. Retirements In March 2020, we repurchased at par all $1.065 billion principal amount outstanding of our senior unsecured notes that were due in 2047 before the maturity date, which did not have a material impact on our condensed consolidated financial statements. E. Derivative Financial Instruments and Hedging Activities Foreign Exchange Risk A significant portion of our revenues, earnings and net investments in foreign affiliates is exposed to changes in foreign exchange rates. We manage our foreign exchange risk, in part, through operational means, including managing same-currency revenues in relation to same-currency costs and same-currency assets in relation to same-currency liabilities. We also manage our foreign exchange risk through the use of derivative financial instruments and foreign currency debt. These financial instruments serve to mitigate the impact on net income as a result of remeasurement into another currency, or against the impact of translation into U.S. dollars of certain foreign exchange-denominated transactions. The derivative financial instruments primarily hedge or offset exposures in the euro, U.K. pound, Japanese yen, Swedish krona and Chinese renminbi. As a part of our cash flow hedging program, we designate foreign exchange contracts to hedge a portion of our forecasted euro, Japanese yen, Chinese renminbi, Canadian dollar, U.K. pound and Australian dollar-denominated intercompany inventory sales expected to occur no more than two years from the date of each hedge. Interest Rate Risk Our interest-bearing investments and borrowings are subject to interest rate risk. From time to time, depending on market conditions, we will change the profile of our outstanding debt or investments by entering into derivative financial instruments like interest rate swaps, either to hedge or offset the exposure to changes in the fair value of hedged items with fixed interest rates, or to convert variable rate debt (or investments) to fixed rates. The derivative financial instruments primarily hedge U.S. dollar fixed-rate debt. The following summarizes the fair value of the derivative financial instruments and the notional amounts: (MILLIONS OF DOLLARS) September 27, 2020 December 31, 2019 Fair Value Fair Value Notional Asset Liability Notional Asset Liability Derivatives designated as hedging instruments: Foreign exchange contracts (a) $ 24,545 $ 346 $ 1,187 $ 25,193 $ 591 $ 662 Interest rate contracts 1,995 147 — 6,645 318 — 493 1,187 909 662 Derivatives not designated as hedging instruments: Foreign exchange contracts $ 16,084 75 85 $ 19,623 82 55 Total $ 568 $ 1,272 $ 992 $ 718 (a) The notional amount of outstanding foreign currency forward-exchange contracts hedging our intercompany forecasted inventory sales was $5.1 billion as of September 27, 2020 and $5.9 billion as of December 31, 2019. The following summarizes information about the gains/(losses) incurred to hedge or offset operational foreign exchange or interest rate risk: Amount of (a) Amount of Gains/(Losses) (a), (b) Amount of Gains/(Losses) (a) (MILLIONS OF DOLLARS) Sept. 27, 2020 Sept. 29, 2019 Sept. 27, 2020 Sept. 29, 2019 Sept. 27, 2020 Sept. 29, 2019 Three Months Ended Derivative Financial Instruments in Cash Flow Hedge Relationships: Foreign exchange contracts (c) $ — $ — $ (379) $ 131 $ (149) $ 7 Amount excluded from effectiveness testing recognized in earnings based on an amortization approach (d) — — 7 21 7 22 Derivative Financial Instruments in Fair Value Hedge Relationships: Interest rate contracts (9) 378 — — — — Hedged item 9 (378) — — — — Derivative Financial Instruments in Net Investment Hedge Relationships: Foreign exchange contracts — — (257) 112 — — The portion on foreign exchange contracts excluded from the assessment of hedge effectiveness (d) — — 9 43 38 45 Non-Derivative Financial Instruments in Net Investment Hedge Relationships: Foreign currency short-term borrowings (e) — — — 45 — — Foreign currency long-term debt (e) — — (72) 79 — — Derivative Financial Instruments Not Designated as Hedges: Foreign exchange contracts 255 (77) — — — — All other net (d) — — — (1) — — $ 255 $ (77) $ (692) $ 429 $ (104) $ 74 Amount of Gains/(Losses) Recognized in OID (a) Amount of Gains/(Losses) Recognized in OCI (a), (b) Amount of Gains/(Losses) Reclassified from OCI into OID and COS (a) (MILLIONS OF DOLLARS) Sept. 27, 2020 Sept. 29, 2019 Sept. 27, 2020 Sept. 29, 2019 Sept. 27, 2020 Sept. 29, 2019 Nine Months Ended Derivative Financial Instruments in Cash Flow Hedge Relationships: Foreign exchange contracts (c) $ — $ — $ (721) $ 137 $ (23) $ 265 Amount excluded from effectiveness testing recognized in earnings based on an amortization approach (d) — — 49 105 48 108 Derivative Financial Instruments in Fair Value Hedge Relationships: Interest rate contracts 383 1,191 — — — — Hedged item (383) (1,191) — — — — Derivative Financial Instruments in Net Investment Hedge Relationships: Foreign exchange contracts — — (17) 87 — — The portion of foreign exchange contracts excluded from the assessment of hedge effectiveness (d) — — 185 136 122 99 Non-Derivative Financial Instruments in Net Investment Hedge Relationships: Foreign currency short-term borrowings (e) — — 8 65 — — Foreign currency long-term debt (e) — — (69) 89 — — Derivative Financial Instruments Not Designated as Hedges: Foreign exchange contracts 205 (201) — — — — All other net (d) — — 12 — (1) — $ 205 $ (201) $ (553) $ 617 $ 147 $ 472 (a) OID = Other (income)/deductions—net, included in Other (income)/deductions—net in the condensed consolidated statements of income . COS = Cost of Sales, included in Cost of sales in the condensed consolidated statements of income. OCI = Other comprehensive income/(loss), included in the condensed consolidated statements of comprehensive income . (b) For derivative financial instruments in net investment hedge relationships and for foreign currency debt designated as hedging instruments, the gains and losses are included in Other comprehensive income/(loss)––Foreign currency translation adjustments, net. (c) The amounts reclassified from OCI into COS were: • a net gain of $34 million in the third quarter of 2020; • a net gain of $184 million in the first nine months of 2020; • a net gain of $66 million in the third quarter of 2019; and • a net gain of $169 million in the first nine months of 2019. The remaining amounts were reclassified from OCI into OID. Based on quarter-end foreign exchange rates that are subject to change, we expect to reclassify a pre-tax loss of $192 million within the next 12 months into income . The maximum length of time over which we are hedging future foreign exchange cash flow relates to our $1.8 billion U.K. pound debt maturing in 2043. (d) The amounts reclassified from OCI were reclassified into OID. (e) Long-term debt includes foreign currency borrowings with carrying values of $2.0 billion as of September 27, 2020, which are used as hedging instruments in net investment hedge relationships. The following summarizes the amounts recorded in our condensed consolidated balance sheet related to cumulative basis adjustments for fair value hedges: September 27, 2020 December 31, 2019 Cumulative Amount of Fair Value Hedging Adjustment Increase/(Decrease) to Cumulative Amount of Fair Value Hedging Adjustment Increase/(Decrease) to (MILLIONS OF DOLLARS) Carrying Amount of Hedged Assets/Liabilities (a) Active Hedging Relationships Discontinued Hedging Relationships Carrying Amount of Hedged Assets/Liabilities (a) Active Hedging Relationships Discontinued Hedging Relationships Short-term investments $ 45 $ — $ — $ — $ — $ — Long-term investments — — — 45 — — Long-term debt 2,019 131 1,165 7,092 266 690 (a) Carrying amounts exclude the cumulative amount of fair value hedging adjustments. Certain of our derivative financial instruments are covered by associated credit-support agreements that have credit-risk-related contingent features designed to reduce both counterparties’ exposure to risk of defaulting on amounts owed by the other party. As of September 27, 2020, the aggregate fair value of these derivative financial instruments that are in a net liability position was $1.1 billion, for which we have posted collateral of $1.2 billion in the normal course of business. If there had been a downgrade by S&P or Moody’s, we would not have been required to post any additional collateral. As of September 27, 2020, we received cash collateral of $169 million from various counterparties that fully supports the approximate fair value of our derivative contracts and is reported in Short-term borrowings, including current portion of long-term debt. F. Credit Risk On an ongoing basis, we review the creditworthiness of counterparties to our foreign exchange and interest rate agreements and do not expect to incur a significant loss from failure of any counterparties to perform under the agreements. There are no significant concentrations of credit risk related to our financial instruments with any individual counterparty. For additional information about concentrations of certain credit risk related to certain significant customers, see Notes to Consolidated Financial Statements–– Note 17C. Segment, Geographic and Other Revenue Information: Other Revenue Information in Pfizer’s 2019 Financial Report. As of September 27, 2020, we had $1.4 billion due from a well-diversified, high quality group of banks from around the world. For details about our investments, see Note 7B. In general, there is no requirement for collateral from customers. However, derivative financial instruments are executed under credit-support agreements that provide for the ability to request to receive cash collateral, depending on levels of exposure, our credit rating and the credit rating of the counterparty. |
Inventories
Inventories | 9 Months Ended |
Sep. 27, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The following summarizes the components of Inventories : (MILLIONS OF DOLLARS) September 27, December 31, 2019 Finished goods $ 3,521 $ 2,750 Work-in-process 5,014 4,743 Raw materials and supplies 760 790 Inventories (a) $ 9,295 $ 8,283 Noncurrent inventories not included above (b) $ 948 $ 714 (a) The change from December 31, 2019 reflects increases for certain products, including inventory build for new product launches, market demand, supply recovery and network strategy, and an increase due to foreign exchange. (b) Included in Other noncurrent assets . There are no recoverability issues associated with these amounts. |
Identifiable Intangible Assets
Identifiable Intangible Assets and Goodwill | 9 Months Ended |
Sep. 27, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Identifiable Intangible Assets and Goodwill | Identifiable Intangible Assets and Goodwill A. Identifiable Intangible Assets Balance Sheet Information The following summarizes the components of Identifiable intangible assets : September 27, 2020 December 31, 2019 (MILLIONS OF DOLLARS) Gross Accumulated Identifiable Gross Accumulated Identifiable Finite-lived intangible assets Developed technology rights (a) $ 90,052 $ (66,212) $ 23,840 $ 88,730 $ (63,106) $ 25,625 Brands 922 (766) 156 922 (741) 181 Licensing agreements and other (b) 2,385 (1,238) 1,146 1,772 (1,191) 582 93,358 (68,216) 25,142 91,425 (65,037) 26,387 Indefinite-lived intangible assets Brands 1,991 1,991 1,991 1,991 IPR&D (c) 3,221 3,221 5,919 5,919 Licensing agreements and other (b) 573 573 1,073 1,073 5,785 5,785 8,983 8,983 Identifiable intangible assets (d) $ 99,143 $ (68,216) $ 30,927 $ 100,408 $ (65,037) $ 35,370 (a) The change in the gross carrying amount primarily reflect the transfer of $600 million from IPR&D to Developed technology rights to reflect the approval of Braftovi in combination with Erbitux ® (cetuximab), for the treatment of BRAF V600E -mutant metastatic colorectal cancer after prior therapy and a $200 million measurement period adjustment related to the acquisition of Array (see Note 2A ) . (b) The changes in the gross carrying amounts primarily reflect the transfer of $600 million from Indefinite-lived Licensing agreements and other to finite-lived Licensing agreements and other to reflect the approval in the U.S. of several products subject to out-licensing arrangements acquired from Array, as well as measurement period adjustments related to the acquisition of Array. (c) The changes in the gross carrying amount primarily reflect a $1.2 billion measurement period adjustment related to the acquisition of Array, a $900 million impairment of IPR&D (see Note 4 ), and the transfer of $600 million from IPR&D to Developed technology rights to reflect the approval of Braftovi in combination with Erbitux ® (cetuximab), for the treatment of BRAF V600E -mutant metastatic colorectal cancer after prior therapy. (d) The decrease is primarily due to amortization, the $900 million impairment of IPR&D, and measurement period adjustments related to the acquisition of Array. Our identifiable intangible assets are associated with the following, as a percentage of total identifiable intangible assets, less accumulated amortization: September 27, 2020 Biopharma Upjohn WRDM Developed technology rights 99 % 1 % — Brands, finite-lived 100 % — — Brands, indefinite-lived 42 % 58 % — IPR&D 92 % — 8 % Licensing agreements and other, finite-lived 99 % 1 % 1 % Licensing agreements and other, indefinite-lived 100 % — — Amortization Total amortization of finite-lived intangible assets was $910 million for the third quarter of 2020 and $1.2 billion for the third quarter of 2019, and $2.7 billion for the first nine months of 2020 and $3.6 billion for the first nine months of 2019. B. Goodwill The following summarizes the components and changes in the carrying amount of Goodwill : (MILLIONS OF DOLLARS) Biopharma Upjohn Total Balance, December 31, 2019 $ 48,202 $ 10,451 $ 58,653 Additions (a) 727 — 727 Other (b) 420 102 522 Balance, September 27, 2020 $ 49,349 $ 10,553 $ 59,902 (a) Additions primarily represents the impact of measurement period adjustments related to our Array acquisition (see Note 2A ). (b) Represents the impact of foreign exchange. |
Pension and Postretirement Bene
Pension and Postretirement Benefit Plans | 9 Months Ended |
Sep. 27, 2020 | |
Retirement Benefits [Abstract] | |
Pension and Postretirement Benefit Plans | Pension and Postretirement Benefit Plans The following summarizes the components of net periodic benefit cost/(credit): Three Months Ended Pension Plans U.S. U.S. Supplemental International Postretirement (MILLIONS OF DOLLARS) Sept. 27, 2020 Sept. 29, 2019 Sept. 27, 2020 Sept. 29, 2019 Sept. 27, 2020 Sept. 29, 2019 Sept. 27, 2020 Sept. 29, 2019 Service cost $ — $ — $ — $ — $ 36 $ 31 $ 10 $ 9 Interest cost 131 157 9 12 40 53 13 19 Expected return on plan assets (251) (222) — — (75) (79) (9) (8) Amortization of: Actuarial losses 32 37 4 2 31 20 — — Prior service credits (1) (1) — — (1) (1) (43) (43) Curtailments — — — — — — — (47) Settlements 171 1 3 22 1 12 — (10) Special termination benefits — 3 — 5 — — — 1 Net periodic benefit cost/(credit) reported in income $ 82 $ (25) $ 15 $ 41 $ 32 $ 37 $ (30) $ (78) Nine Months Ended Pension Plans U.S. U.S. Supplemental International Postretirement (MILLIONS OF DOLLARS) Sept. 27, 2020 Sept. 29, 2019 Sept. 27, 2020 Sept. 29, 2019 Sept. 27, 2020 Sept. 29, 2019 Sept. 27, 2020 Sept. 29, 2019 Service cost $ — $ — $ — $ — $ 108 $ 94 $ 29 $ 28 Interest cost 393 472 26 37 122 162 38 57 Expected return on plan assets (754) (667) — — (228) (239) (27) (25) Amortization of: Actuarial losses 96 110 11 7 93 61 — 2 Prior service credits (2) (2) — (1) (2) (3) (129) (132) Curtailments — — — — — — — (47) Settlements 191 3 47 21 2 12 — (10) Special termination benefits — 4 2 14 — — — 2 Net periodic benefit cost/(credit) reported in income $ (77) $ (80) $ 85 $ 78 $ 96 $ 88 $ (89) $ (124) The following summarizes the amounts we contributed, and the amounts we expect to contribute during 2020, to our pension and postretirement plans from our general assets for the periods indicated: Pension Plans (MILLIONS OF DOLLARS) U.S. Qualified U.S. Supplemental (Non-Qualified) International Postretirement Plans Contributions from our general assets for the nine months ended September 27, 2020 $ 1,253 $ 169 $ 151 $ 84 Expected contributions from our general assets during 2020 (a) 1,253 188 186 122 (a) Contributions expected to be made for 2020 are inclusive of amounts contributed during the nine months ended September 27, 2020. The U.S. supplemental (non-qualified) pension plan, international pension plan and the postretirement plan contributions from our general assets include direct employer benefit payments. For the U.S. qualified plans, we made a $1.25 billion voluntary contribution in September 2020. |
Equity
Equity | 9 Months Ended |
Sep. 27, 2020 | |
Equity [Abstract] | |
Equity | Equity A. Preferred Stock Prior to May 4, 2020, Pfizer’s Series A convertible perpetual preferred stock (the Series A Preferred Stock) was held by an employee stock ownership plan trust (the Trust). All outstanding shares of Series A Preferred Stock were converted, at the direction of the independent fiduciary under the Trust and in accordance with the certificate of designations for the Series A Preferred Stock, into shares of Pfizer common stock on May 4, 2020. The Trust received an aggregate of 1,070,369 shares of Pfizer common stock upon conversion, with zero shares of Series A Preferred Stock remaining outstanding as a result of the conversion. B. Dividends The following presents quarterly cash dividends: 2020 2019 Date Payment Dividend Per Date Payment Dividend Per Share December 13, 2019 March 6, 2020 $ 0.38 December 14, 2018 March 1, 2019 $ 0.36 April 23, 2020 June 5, 2020 0.38 April 25, 2019 June 7, 2019 0.36 June 25, 2020 September 1, 2020 0.38 June 27, 2019 September 3, 2019 0.36 September 24, 2020 December 1, 2020 0.38 September 24, 2019 December 2, 2019 0.36 |
Earnings Per Common Share Attri
Earnings Per Common Share Attributable to Pfizer Inc. Common Shareholders | 9 Months Ended |
Sep. 27, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share Attributable to Pfizer Inc. Common Shareholders | Earnings Per Common Share Attributable to Pfizer Inc. Common Shareholders The following presents the detailed calculation of EPS : Three Months Ended Nine Months Ended (IN MILLIONS) September 27, September 29, September 27, September 29, EPS Numerator––Basic Income from continuing operations $ 2,202 $ 7,680 $ 9,046 $ 16,625 Less: Net income attributable to noncontrolling interests 8 4 25 19 Income from continuing operations attributable to Pfizer Inc. 2,194 7,676 9,022 16,606 Less: Preferred stock dividends––net of tax — — — 1 Income from continuing operations attributable to Pfizer Inc. common shareholders 2,194 7,676 9,021 16,605 Discontinued operations––net of tax — 4 — 4 Net income attributable to Pfizer Inc. common shareholders $ 2,194 $ 7,680 $ 9,021 $ 16,609 EPS Numerator––Diluted Income from continuing operations attributable to Pfizer Inc. common shareholders and assumed conversions $ 2,194 $ 7,676 $ 9,022 $ 16,606 Discontinued operations––net of tax, attributable to Pfizer Inc. common shareholders and assumed conversions — 4 — 4 Net income attributable to Pfizer Inc. common shareholders and assumed conversions $ 2,194 $ 7,680 $ 9,022 $ 16,609 EPS Denominator Weighted-average number of common shares outstanding––Basic 5,557 5,545 5,552 5,581 Common-share equivalents: stock options, stock issuable under employee compensation plans and convertible preferred stock 76 104 70 110 Weighted-average number of common shares outstanding––Diluted 5,633 5,649 5,622 5,690 Anti-dilutive common stock equivalents (a) 7 3 5 2 (a) These common stock equivalents were outstanding for the periods presented, but were not included in the computation of diluted EPS for those periods because their inclusion would have had an anti-dilutive effect. |
Contingencies and Certain Commi
Contingencies and Certain Commitments | 9 Months Ended |
Sep. 27, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Certain Commitments | Contingencies and Certain Commitments We and certain of our subsidiaries are subject to numerous contingencies arising in the ordinary course of business, including tax and legal contingencies. For a discussion of our tax contingencies, see Note 5B. For a discussion of our legal contingencies, see below. A. Legal Proceedings Our legal contingencies include, but are not limited to, the following: • Patent litigation, which typically involves challenges to the coverage and/or validity of patents on various products, processes or dosage forms. We are the plaintiff in the majority of these actions. An adverse outcome in actions in which we are the plaintiff could result in loss of patent protection for a drug, a significant loss of revenues from that drug or impairment of the value of associated assets. • Product liability and other product-related litigation, which can include personal injury, consumer, off-label promotion, securities, antitrust and breach of contract claims, among others, often involves highly complex issues relating to medical causation, label warnings and reliance on those warnings, scientific evidence and findings, actual, provable injury and other matters. • Commercial and other matters, which can include acquisition-, licensing-, collaboration- or co-promotion-related and product-pricing claims and environmental claims and proceedings, can involve complexities that will vary from matter to matter. • Government investigations, which often are related to the extensive regulation of pharmaceutical companies by national, state and local government agencies in the U.S. and in other jurisdictions. Certain of these contingencies could result in losses, including damages, fines and/or civil penalties, which could be substantial, and/or criminal charges. We believe that our claims and defenses in matters in which we are a defendant are substantial, but litigation is inherently unpredictable and excessive verdicts do occur. We do not believe that any of these matters will have a material adverse effect on our financial position. However, we could incur judgments, enter into settlements or revise our expectations regarding the outcome of certain matters, and such developments could have a material adverse effect on our results of operations in the period in which the amounts are accrued and/or our cash flows in the period in which the amounts are paid. We have accrued for losses that are both probable and reasonably estimable. Substantially all of our contingencies are subject to significant uncertainties and, therefore, determining the likelihood of a loss and/or the measurement of any loss can be complex. Consequently, we are unable to estimate the range of reasonably possible loss in excess of amounts accrued. Our assessments are based on estimates and assumptions that have been deemed reasonable by management but that may prove to be incomplete or inaccurate, and unanticipated events and circumstances may cause us to change those estimates and assumptions. Amounts recorded for legal and environmental contingencies can result from a complex series of judgments about future events and uncertainties and can rely heavily on estimates and assumptions. The principal pending matters to which we are a party are discussed below. In determining whether a pending matter is a principal matter, we consider both quantitative and qualitative factors in order to assess materiality, such as, among other things, the amount of damages and the nature of any other relief sought in the proceeding, if such damages and other relief are specified; our view of the merits of the claims and of the strength of our defenses; whether the action purports to be, or is, a class action and, if not certified, our view of the likelihood that a class will be certified by the court; the jurisdiction in which the proceeding is pending; whether related actions have been transferred to multidistrict litigation; any experience that we or, to our knowledge, other companies have had in similar proceedings; whether disclosure of the action would be important to a reader of our financial statements, including whether disclosure might change a reader’s judgment about our financial statements in light of all of the information that is available to the reader; the potential impact of the proceeding on our reputation; and the extent of public interest in the matter. In addition, with respect to patent matters in which we are the plaintiff, we consider, among other things, the financial significance of the product protected by the patent(s) at issue. As a result of considering qualitative factors in our determination of principal matters, there are some matters discussed below with respect to which management believes that the likelihood of possible loss in excess of amounts accrued is remote. A1. Legal Proceedings––Patent Litigation Like other pharmaceutical companies, we are involved in numerous suits relating to our patents, including but not limited to, those discussed below. Most of the suits involve claims by generic drug manufacturers that patents covering our products, processes or dosage forms are invalid and/or do not cover the product of the generic drug manufacturer. Also, counterclaims, as well as various independent actions, have been filed alleging that our assertions of, or attempts to enforce, patent rights with respect to certain products constitute unfair competition and/or violations of antitrust laws. In addition to the challenges to the U.S. patents on a number of our products that are discussed below, patent rights to certain of our products are being challenged in various other jurisdictions. We are also party to patent damages suits in various jurisdictions pursuant to which generic drug manufacturers, payers, governments or other parties are seeking damages from us for allegedly causing delay of generic entry. Additionally, our licensing and collaboration partners face challenges by generic drug manufacturers to patents covering products for which we have licenses or co-promotion rights. We also are often involved in other proceedings, such as inter partes review, post-grant review, re-examination or opposition proceedings, before the U.S. Patent and Trademark Office, the European Patent Office, or other foreign counterparts relating to our intellectual property or the intellectual property rights of others. Also, if one of our patents is found to be invalid by such proceedings, generic or competitive products could be introduced into the market resulting in the erosion of sales of our existing products. For example, several of the patents in our pneumococcal vaccine portfolio were challenged in inter partes review and post-grant review proceedings in the U.S. In October 2017, the Patent Trial and Appeal Board (PTAB) refused to initiate proceedings as to two patents. In June 2018, the PTAB ruled on another patent, holding that one claim was valid and that all other claims were invalid. The party challenging that patent appealed the decision. In November 2019, the U.S. Court of Appeals for the Federal Circuit vacated the PTAB’s ruling and requested that the PTAB redecide the challenge. In March and June 2019, an additional patent was found invalid in separate proceedings by the PTAB. We appealed. In January 2020, the U.S. Court of Appeals for the Federal Circuit vacated the original decision and requested that the PTAB redecide the case. Challenges to other patents remain pending in jurisdictions outside the U.S. The invalidation of all of the patents in our pneumococcal portfolio could potentially allow a competitor’s pneumococcal vaccine into the marketplace. In the event that any of the patents are found valid and infringed, a competitor’s pneumococcal vaccine might be prohibited from entering the market or a competitor might be required to pay Pfizer a royalty. We are also subject to patent litigation pursuant to which one or more third parties seek damages and/or injunctive relief to compensate for alleged infringement of its patents by our commercial or other activities. For example, our Hospira subsidiaries are involved in patent and patent-related disputes over their attempts to bring generic pharmaceutical and biosimilar products to market. If one of our marketed products is found to infringe valid patent rights of a third party, such third party may be awarded significant damages, or we may be prevented from further sales of that product. Such damages may be enhanced as much as three-fold in the event that we or one of our subsidiaries, like Hospira, is found to have willfully infringed valid patent rights of a third party. Actions In Which We Are The Plaintiff EpiPen In July 2010, King, which we acquired in 2011 and is a wholly-owned subsidiary, brought a patent-infringement action against Sandoz in the U.S. District Court for the District of New Jersey in connection with Sandoz’s abbreviated new drug application filed with the FDA seeking approval to market an epinephrine injectable product. Sandoz is challenging patents, which expire in 2025, covering the next-generation autoinjector for use with epinephrine that is sold under the EpiPen brand name. Xeljanz (tofacitinib) Beginning in 2017, we brought patent-infringement actions against several generic manufacturers that filed separate abbreviated new drug applications with the FDA seeking approval to market their generic versions of tofacitinib tablets in one or both of 5 mg and 10 mg dosage strengths, and in both immediate and extended release forms. To date, actions against the following generic manufacturers have been settled on terms not material to Pfizer: (i) MicroLabs USA Inc. and MicroLabs Ltd.; (ii) Sun Pharmaceutical Industries Ltd.; (iii) Prinston Pharmaceutical Inc., Zhejiang Huahai Pharmaceutical Co., Ltd., Huahai US Inc. and Solco Healthcare US, LLC; (iv) Breckenridge Pharmaceutical Inc., Pensa Pharma S.A. and Laboratorios Del Dr. Esteve, S.A.; and (v) Ajanta Pharma Ltd. and Ajanta Pharma USA Inc. The remaining actions continue as described below. In March 2017, we brought a patent-infringement action against Zydus Pharmaceuticals (USA) Inc. and Cadila Healthcare Ltd. (collectively, Zydus) in the U.S. District Court for the District of Delaware asserting the infringement and validity of three patents: the patent covering the active ingredient expiring in December 2025, the patent covering an enantiomer of tofacitinib expiring in 2022, and the patent covering a polymorphic form of tofacitinib expiring in 2023, which Zydus challenged in its abbreviated new drug application seeking approval to market a generic version of tofacitinib 5 mg tablets. In December 2018, we brought a separate patent infringement action against Teva Pharmaceuticals USA, Inc. (Teva) in the U.S. District Court for the District of Delaware asserting the infringement and validity of our patent covering extended release formulations of tofacitinib that was challenged by Teva in its abbreviated new drug application seeking approval to market a generic version of tofacitinib 11 mg extended release tablets. Inlyta (axitinib) In April 2018, Apotex Inc. notified us that it had filed an abbreviated new drug application with the FDA seeking approval to market a generic version of Inlyta. Apotex Inc. asserted the invalidity and non-infringement of the crystalline form patent for Inlyta that expires in 2030. In May 2018, we filed suit against Apotex Inc. in the U.S. District Court for the District of Delaware, asserting the validity and infringement of the crystalline form patent for Inlyta. In September 2020, we settled the case against Apotex Inc. on terms not material to Pfizer. In May 2019, Glenmark Pharmaceuticals Limited (Glenmark) notified us that it had filed an abbreviated new drug application with the FDA seeking approval to market a generic version of Inlyta. Glenmark asserts the invalidity and non-infringement of the crystalline form patent for Inlyta that expires in 2030. In June 2019, we filed suit against Glenmark in the U.S. District Court for the District of Delaware, asserting the validity and infringement of the crystalline form patent for Inlyta. Kerydin (tavaborole) In September 2018, several generic companies notified us that they had filed abbreviated new drug applications with the FDA seeking approval to market generic versions of Kerydin. The generic companies assert the invalidity and non-infringement of methods of use and formulation patents for tavaborole that expire in 2026 and 2027, including pediatric exclusivity. In October 2018, Anacor, our wholly-owned subsidiary, filed infringement lawsuits against each of the generic filers in the U.S. District Court for the District of Delaware and the U.S. District Court for the District of West Virginia. The cases were consolidated in a Multi-District Litigation in the U.S. District Court for the District of Delaware, and, in September 2020, the District Court issued a final judgment in favor of the generic defendants, which will not have a material impact on Pfizer. Ibrance (palbociclib) In March 2019, several generic companies notified us that they had filed abbreviated new drug applications with the FDA seeking approval to market generic versions of Ibrance. The generic companies assert the invalidity and non-infringement of two composition of matter patents and a method of use patent covering palbociclib, each of which expire in 2023. In April 2019, we brought patent infringement actions against each of the generic filers in various federal courts, asserting the validity and infringement of the patents challenged by the generic companies. Beginning in September 2020, we received correspondence from several generic companies notifying us that they would seek approval to market generic versions of Ibrance. The generic companies assert the invalidity and non-infringement of our crystalline form patent which expires in 2034. Beginning in October 2020, we brought patent infringement actions against each of these generic companies in various federal courts, asserting the validity and infringement of the crystalline form patent. Chantix (varenicline) In January 2020, we brought a patent infringement action against Viwit Pharmaceutical Co. Ltd. (Viwit) in the U.S. District Court for the District of Delaware asserting the validity and infringement of three patents challenged by Viwit in its abbreviated new drug application seeking approval to market a generic version of varenicline, 0.5 mg and 1.0 mg tablets. In September 2020, we settled the case against Viwit on terms not material to Pfizer. Lyrica (pregabalin) • United Kingdom In June 2014, Generics (U.K.) Ltd (trading as Mylan) filed an invalidity action against the Lyrica pain use patent in the High Court of Justice in London. Subsequently, Actavis Group PTC ehf filed an invalidity action in the same court, and Pfizer sued Actavis Group PTC ehf, Actavis U.K. Ltd and Caduceus Pharma Ltd (together, Actavis) for infringement and requested preliminary relief. Our request for preliminary relief was denied in a January 2015 hearing, and the denial subsequently was confirmed on appeal. In February 2015, the National Health Service (NHS) England was ordered by the High Court, as an intermediary, to issue guidance for prescribers and pharmacists directing the prescription and dispensing of Lyrica by brand when pregabalin was prescribed for the treatment of neuropathic pain. NHS Wales and NHS Northern Ireland also issued prescribing guidance. The guidance to prescribe and dispense Lyrica for neuropathic pain was withdrawn upon patent expiration in July 2017. We also filed infringement actions against (i) Teva UK Ltd, and (ii) Dr. Reddy’s Laboratories (UK) Ltd and Caduceus Pharma Ltd (together, Dr. Reddy’s) in February 2015, seeking the same relief as in the action against Actavis. Dr. Reddy’s filed an invalidity counterclaim. These actions were stayed pending the outcome of the Mylan and Actavis cases. The Mylan and Actavis invalidity actions were heard in the High Court at the same time as the Actavis infringement action. The High Court ruled against us, holding that the asserted claims were either not infringed or invalid, and appeals followed. In November 2018, the U.K. Supreme Court ruled that all the relevant claims directed to neuropathic pain were invalid. In October 2015, after Sandoz GmbH and Sandoz Ltd (together, Sandoz) launched a full label generic pregabalin product, we obtained from the High Court a preliminary injunction enjoining Sandoz from further sales of the product and ordering Sandoz to identify the parties holding its product. Sandoz identified wholesaler AAH Pharmaceuticals Ltd and pharmacy chain Lloyds Pharmacy Ltd (supplied by AAH), and we requested that these parties cease further sales and withdraw the Sandoz full label product. In October 2015, Lloyds was added to the Sandoz action, and we obtained a preliminary order from the High Court requiring Lloyds to advise its pharmacists that the Sandoz full label product should not be dispensed. In November 2015, the High Court confirmed the preliminary injunction against Sandoz and Lloyds. Sandoz filed an invalidity counterclaim. Upon agreement of the parties, in December 2015, the proceedings against Lloyds were discontinued, and the proceedings against Sandoz were stayed pending outcome of the Mylan and Actavis cases. The preliminary injunction against Sandoz remained in place until patent expiration in July 2017. In May 2020, Dr. Reddy’s filed a claim for damages in connection with the above-referenced legal actions. In July 2020, the Scottish Ministers and fourteen Scottish Health Boards (together, NHS Scotland) filed a claim for damages in connection with the above-referenced legal action concerning Sandoz. In September 2020, Teva, Sandoz, Ranbaxy, Inc. (Ranbaxy), Actavis, and the Secretary of State for Health and Social Care, together with 32 other National Health Service entities (together, NHS England, Wales, and Northern Ireland) filed claims for damages in the above-referenced legal actions. • Japan In January 2017, Sawai Pharmaceutical Company Limited (a Japanese generic company) (Sawai) filed an invalidation action against the Lyrica pain use patent in the Japanese Patent Office (JPO). Hexal AG has filed a separate invalidation action that was stayed pending the result of the Sawai action. Multiple parties were allowed to intervene in the Sawai case. In July 2020, the JPO recognized the validity of certain amended claims of the patent covering Lyrica. We are appealing the decision. In August 2020, the Japanese regulatory authority granted regulatory approval to multiple generic companies and we filed legal actions against the generic companies seeking preliminary and permanent injunctions to prevent infringement of our patent. Matter Involving Our Collaboration/Licensing Partners Eliquis In February, March, and April 2017, twenty-five generic companies sent BMS Paragraph-IV certification letters informing BMS that they had filed abbreviated new drug applications seeking approval of generic versions of Eliquis, challenging the validity and infringement of one or more of the three patents listed in the Orange Book for Eliquis. One of the patents expired in December 2019 and the remaining patents currently are set to expire in 2026 and 2031. Eliquis has been jointly developed and is being commercialized by BMS and Pfizer. In April 2017, BMS and Pfizer filed patent-infringement actions against all generic filers in the U.S. District Court for the District of Delaware and the U.S. District Court for the District of West Virginia, asserting that each of the generic companies’ proposed products would infringe each of the patent(s) that each generic filer challenged. Some generic filers challenged only the 2031 patent, some challenged both the 2031 and 2026 patent, and one generic company challenged all three patents. In August 2020, the U.S. District Court for the District of Delaware ruled that both the 2026 patent and the 2031 patent are valid and infringed by the proposed generic products. In August and September 2020, the generic filers appealed the District Court’s decision to the U.S. Court of Appeals for the Federal Circuit. Prior to the August 2020 ruling, we and BMS settled with certain of the generic companies on terms not material to Pfizer, and we and BMS may settle with other generic companies in the future. A2. Legal Proceedings––Product Litigation Like other pharmaceutical companies, we are defendants in numerous cases, including but not limited to those discussed below, related to our pharmaceutical and other products. Plaintiffs in these cases seek damages and other relief on various grounds for alleged personal injury and economic loss. Asbestos Between 1967 and 1982, Warner-Lambert owned American Optical Corporation (American Optical), which manufactured and sold respiratory protective devices and asbestos safety clothing. In connection with the sale of American Optical in 1982, Warner-Lambert agreed to indemnify the purchaser for certain liabilities, including certain asbestos-related and other claims. Claims against American Optical and numerous other defendants are pending in various federal and state courts seeking damages for alleged personal injury from exposure to asbestos and other allegedly hazardous materials. Warner-Lambert was acquired by Pfizer in 2000 and is a wholly owned subsidiary of Pfizer. Warner-Lambert is actively engaged in the defense of, and will continue to explore various means of resolving, these claims. Numerous lawsuits are pending against Pfizer in various federal and state courts seeking damages for alleged personal injury from exposure to products allegedly containing asbestos and other allegedly hazardous materials sold by Pfizer and certain of its previously owned subsidiaries. There also are a small number of lawsuits pending in various federal and state courts seeking damages for alleged exposure to asbestos in facilities owned or formerly owned by Pfizer or its subsidiaries. Effexor Beginning in May 2011, actions, including purported class actions, were filed in various federal courts against Wyeth and, in certain of the actions, affiliates of Wyeth and certain other defendants relating to Effexor XR, which is the extended-release formulation of Effexor. The plaintiffs in each of the class actions seek to represent a class consisting of all persons in the U.S. and its territories who directly purchased, indirectly purchased or reimbursed patients for the purchase of Effexor XR or generic Effexor XR from any of the defendants from June 14, 2008 until the time the defendants’ allegedly unlawful conduct ceased. The plaintiffs in all of the actions allege delay in the launch of generic Effexor XR in the U.S. and its territories, in violation of federal antitrust laws and, in certain of the actions, the antitrust, consumer protection and various other laws of certain states, as the result of Wyeth fraudulently obtaining and improperly listing certain patents for Effexor XR in the Orange Book, enforcing certain patents for Effexor XR and entering into a litigation settlement agreement with a generic drug manufacturer with respect to Effexor XR. Each of the plaintiffs seeks treble damages (for itself in the individual actions or on behalf of the putative class in the purported class actions) for alleged price overcharges for Effexor XR or generic Effexor XR in the U.S. and its territories since June 14, 2008. All of these actions have been consolidated in the U.S. District Court for the District of New Jersey. In October 2014, the District Court dismissed the direct purchaser plaintiffs’ claims based on the litigation settlement agreement, but declined to dismiss the other direct purchaser plaintiff claims. In January 2015, the District Court entered partial final judgments as to all settlement agreement claims, including those asserted by direct purchasers and end-payer plaintiffs, which plaintiffs appealed to the U.S. Court of Appeals for the Third Circuit. In August 2017, the U.S. Court of Appeals for the Third Circuit reversed the District Court’s decisions and remanded the claims to the District Court. Lipitor • Antitrust Actions Beginning in November 2011, purported class actions relating to Lipitor were filed in various federal courts against, among others, Pfizer, certain affiliates of Pfizer, and, in most of the actions, Ranbaxy and certain affiliates of Ranbaxy. The plaintiffs in these various actions seek to represent nationwide, multi-state or statewide classes consisting of persons or entities who directly purchased, indirectly purchased or reimbursed patients for the purchase of Lipitor (or, in certain of the actions, generic Lipitor) from any of the defendants from March 2010 until the cessation of the defendants’ allegedly unlawful conduct (the Class Period). The plaintiffs allege delay in the launch of generic Lipitor, in violation of federal antitrust laws and/or state antitrust, consumer protection and various other laws, resulting from (i) the 2008 agreement pursuant to which Pfizer and Ranbaxy settled certain patent litigation involving Lipitor and Pfizer granted Ranbaxy a license to sell a generic version of Lipitor in various markets beginning on varying dates, and (ii) in certain of the actions, the procurement and/or enforcement of certain patents for Lipitor. Each of the actions seeks, among other things, treble damages on behalf of the putative class for alleged price overcharges for Lipitor (or, in certain of the actions, generic Lipitor) during the Class Period. In addition, individual actions have been filed against Pfizer, Ranbaxy and certain of their affiliates, among others, that assert claims and seek relief for the plaintiffs that are substantially similar to the claims asserted and the relief sought in the purported class actions described above. These various actions have been consolidated for pre-trial proceedings in a Multi-District Litigation ( In re Lipitor Antitrust Litigation MDL-2332 ) in the U.S. District Court for the District of New Jersey. In September 2013 and 2014, the District Court dismissed with prejudice the claims of the direct purchasers. In October and November 2014, the District Court dismissed with prejudice the claims of all other Multi-District Litigation plaintiffs. All plaintiffs have appealed the District Court’s orders dismissing their claims with prejudice to the U.S. Court of Appeals for the Third Circuit. In addition, the direct purchaser class plaintiffs appealed the order denying their motion to amend the judgment and for leave to amend their complaint to the U.S. Court of Appeals for the Third Circuit. In August 2017, the U.S. Court of Appeals for the Third Circuit reversed the District Court’s decisions and remanded the claims to the District Court. Also, in January 2013, the State of West Virginia filed an action in West Virginia state court against Pfizer and Ranbaxy, among others, that asserts claims and seeks relief on behalf of the State of West Virginia and residents of that state that are substantially similar to the claims asserted and the relief sought in the purported class actions described above. • Personal Injury Actions A number of individual and multi-plaintiff lawsuits have been filed against Pfizer in various federal and state courts alleging that the plaintiffs developed type 2 diabetes purportedly as a result of the ingestion of Lipitor. Plaintiffs seek compensatory and punitive damages. In February 2014, the federal actions were transferred for consolidated pre-trial proceedings to a Multi-District Litigation ( In re Lipitor (Atorvastatin Calcium) Marketing, Sales Practices and Products Liability Litigation (No. II) MDL-2502 ) in the U.S. District Court for the District of South Carolina. Since 2016, certain cases in the Multi-District Litigation were remanded to certain state courts. In January 2017, the District Court granted our motion for summary judgment, dismissing substantially all of the remaining cases pending in the Multi-District Litigation. In January 2017, the plaintiffs appealed the District Court’s decision to the U.S. Court of Appeals for the Fourth Circuit. In June 2018, the U.S. Court of Appeals for the Fourth Circuit affirmed the District Court’s decision. Viagra Since April 2016, a Multi-District Litigation has been pending in the U.S. District Court for the Northern District of California ( In Re: Viagra (Sildenafil Citrate) Products Liability Litigation, MDL-2691 ), in which plaintiffs allege that they developed melanoma and/or the exacerbation of melanoma purportedly as a result of the ingestion of Viagra. Additional cases filed against Lilly with respect to Cialis have also been consolidated in the Multi-District Litigation (In re: Viagra (Sildenafil Citrate) and Cialis (Tadalafil) Products Liability Litigation, MDL-2691 ). In January 2020, the District Court granted our and Lilly’s motion to exclude all of plaintiffs’ general causation opinions. As a result, in April 2020, the District Court entered summary judgment in favor of defendants and dismissed all of plaintiffs’ claims. In April 2020, plaintiffs filed a notice of appeal in the U.S. Court of Appeals for the Ninth Circuit. EpiPen Beginning in February 2017, purported class actions were filed in various federal courts by indirect purchasers of EpiPen against Pfizer, and/or its affiliates King and Meridian, and/or various entities affiliated with Mylan, and Mylan Chief Executive Officer, Heather Bresch. The plaintiffs in these actions seek to represent U.S. nationwide classes comprising persons or entities who paid for any portion of the end-user purchase price of an EpiPen between 2009 until the cessation of the defendants’ allegedly unlawful conduct. In February 2020, a similar lawsuit was filed in the U.S. District Court for the District of Kansas against Pfizer, King, Meridian and the Mylan entities on behalf of a purported U.S. nationwide class of direct purchaser plaintiffs who purchased EpiPen devices directly from the defendants (the 2020 Lawsuit). Against Pfizer and/or its affiliates, plaintiffs in these actions generally allege that Pfizer’s and/or its affiliates’ settlement of patent litigation regarding EpiPen delayed market entry of generic EpiPen in violation of federal antitrust laws and various state antitrust laws. At least one lawsuit also alleges that Pfizer and/or Mylan violated the federal Racketeer Influenced and Corrupt Organizations Act (RICO). Plaintiffs also filed various federal antitrust, state consumer protection and unjust enrichment claims against, and relating to conduct attributable solely to, Mylan and/or its affiliates regarding EpiPen. Plaintiffs seek treble damages for alleged overcharges for EpiPen since 2011. In August 2017, all of these actions, except for the 2020 Lawsuit, were consolidated for coordinated pre-trial proceedings in a Multi-District Litigation ( In re: EpiPen (Epinephrine Injection, USP) Marketing, Sales Practices and Antitrust Litigation, MDL-2785 ) in the U.S. District Court for the District of Kansas with other EpiPen-related actions against Mylan and/or its affiliates to which Pfizer, King and Meridian are not parties. In July 2020, a new lawsuit was filed in the U.S. District Court for the District of Colorado on behalf of indirect purchasers. Plaintiff represents a putative U.S. nationwide class of persons or entities who paid for any portion of the end-user purchase price of certain refill or replacement EpiPens since 2010. Plaintiff alleges that Pfizer and Meridian misrepresented the shelf-life and expiration date of EpiPen, in violation of the federal RICO statute. Plaintiff seeks treble damages for alleged unnecessary replacement or refill purchases of EpiPens by members of the putative class. Nexium 24HR and Protonix A number of individual and multi-plaintiff lawsuits have been filed against Pfizer, certain of its subsidiaries and/or other pharmaceutical manufacturers in various federal and state courts alleging that the plaintiffs developed kidney-related injuries purportedly as a result of the ingestion of certain proton pump inhibitors. The cases against Pfizer involve Protonix and/or Nexium 24HR and seek compensatory and punitive damages and, in some cases, treble damages, restitution or disgorgement. In August 2017, the federal actions were ordered transferred for coordinated pre-trial proceedings to a Multi-District Litigation ( In re: Proton-Pump Inhibitor Products Liability Litigation (No. II)) in the U.S. District Court for th |
Segment, Geographic and Other R
Segment, Geographic and Other Revenue Information | 9 Months Ended |
Sep. 27, 2020 | |
Segment Reporting [Abstract] | |
Segment, Geographic and Other Revenue Information | Segment, Geographic and Other Revenue Information A. Segment Information At the beginning of our fiscal year 2019, we reorganized our commercial operations and began to manage our commercial operations through a new global structure consisting of three distinct business segments: Biopharma, Upjohn and through July 31, 2019, Pfizer’s Consumer Healthcare business (Consumer Healthcare), each led by a single manager. Each operating segment has responsibility for its commercial activities. Upjohn is, and through July 31, 2019 Consumer Healthcare was, responsible for its own R&D activities while Biopharma receives its R&D services from GPD and WRDM. These services include IPR&D projects for new investigational products and additional indications for in-line products. Each business has a geographic footprint across developed and emerging markets. Our chief operating decision maker uses the revenues and earnings of the operating segments, among other factors, for performance evaluation and resource allocation. Biopharma and Upjohn are the only reportable segments. Beginning in 2020, Upjohn began managing our Meridian subsidiary, the manufacturer of EpiPen and other auto-injector products, and a pre-existing strategic collaboration between Pfizer and Mylan for generic drugs in Japan (Mylan-Japan). As a result, revenues and expenses associated with Meridian and Mylan-Japan are reported in our Upjohn business beginning in the first quarter of 2020. In 2019, revenues and expenses from Meridian and Mylan-Japan were recorded in our Biopharma business. We have revised prior-period information (Revenues and Earnings, as defined by management) to conform to the current management structure. Acquisitions and other business development activities completed in 2019 and in the first nine months of 2020, including the contribution of our Consumer Healthcare business to the GSK Consumer Healthcare joint venture, impacted financial results in the periods presented. See Notes to Consolidated Financial Statements— Note 1A. Basis of Presentation and Significant Accounting Policies: Basis of Presentation in our 2019 Financial Report, and Note 2. Operating Segments Some additional information about our Biopharma and Upjohn business segments follows: Pfizer Biopharmaceuticals Group Biopharma is a science-based innovative medicines business that includes six business units – Oncology, Inflammation & Immunology, Rare Disease, Hospital, Vaccines and Internal Medicine. The Hospital unit commercializes our global portfolio of sterile injectable and anti-infective medicines and includes Pfizer’s contract manufacturing operation, Pfizer CentreOne. Each business unit is committed to delivering breakthroughs that change patients’ lives. Upjohn is a global, primarily off-patent branded and generic medicines business, which includes a portfolio of 20 globally recognized solid oral dose brands, as well as a U.S.-based generics platform, Greenstone. Select products include: - Prevnar 13/Prevenar 13 - Ibrance - Eliquis - Xeljanz - Enbrel (outside the U.S. and Canada) - Vyndaqel/Vyndamax - Xtandi - Chantix/Champix - Sutent Select products include: - Lipitor - Lyrica - Celebrex - Viagra - Certain generic medicines Other Costs and Business Activities Certain pre-tax costs are not allocated to our operating segment results, such as costs associated with the following: • WRDM––the R&D and Medical expenses managed by our WRDM organization, which is generally responsible for research projects for our Biopharma portfolio until proof-of-concept is achieved and then for transitioning those projects to the GPD organization for possible clinical and commercial development. R&D spending may include upfront and milestone payments for intellectual property rights. The WRDM organization also has responsibility for certain science-based and other platform-services organizations, which provide end-to-end technical expertise and other services to the various R&D projects, as well as the Worldwide Medical and Safety group, which ensures that Pfizer provides all stakeholders––including patients, healthcare providers, pharmacists, payers and health authorities––with complete and up-to-date information on the risks and benefits associated with Pfizer products so that they can make appropriate decisions on how and when to use Pfizer’s medicines. • GPD––the costs associated with our GPD organization, which is generally responsible for clinical trials from WRDM in the Biopharma portfolio, including late stage portfolio spend. GPD also provides technical support and other services to Pfizer R&D projects. GPD is responsible for facilitating all regulatory submissions and interactions with regulatory agencies. • Other––the operating results of our Consumer Healthcare business, through July 31, 2019, and costs associated with other commercial activities not managed as part of Biopharma or Upjohn, including all strategy, business development, portfolio management and valuation capabilities, which previously had been reported in various parts of the organization. • Corporate and Other Unallocated––the costs associated with corporate enabling functions (such as digital, global real estate operations, legal, finance, human resources, worldwide public affairs, compliance, and worldwide procurement), patient advocacy activities and certain compensation and other corporate costs, such as interest income and expense, and gains and losses on investments, as well as overhead expenses associated with our manufacturing (which include manufacturing variances associated with production) and commercial operations that are not directly assessed to an operating segment, as business unit (segment) management does not manage these costs. Corporate and Other Unallocated also includes our share of earnings from the GSK Consumer Healthcare joint venture and other charges related to the GSK Consumer Healthcare joint venture, primarily representing our pro-rata share of restructuring and business combination accounting charges recorded by the GSK Consumer Healthcare joint venture. • Certain transactions and events such as (i) purchase accounting adjustments, where we incur expenses associated with the amortization of fair value adjustments to inventory, intangible assets and PP&E; (ii) acquisition-related costs, where we incur costs for executing the transaction, integrating the acquired operations and restructuring the combined company; and (iii) certain significant items, representing substantive and/or unusual, and in some cases recurring, items (such as gains on the completion of joint venture transactions, restructuring charges, legal charges or gains and losses from equity securities) that are evaluated on an individual basis by management and that, either as a result of their nature or size, would not be expected to occur as part of our normal business on a regular basis. Such items can include, but are not limited to, non-acquisition-related restructuring costs, as well as costs incurred for legal settlements, asset impairments and disposals of assets or businesses, including, as applicable, any associated transition activities. Segment Assets We manage our assets on a Total Company basis, not by operating segment, as many of our operating assets are shared or commingled; therefore, such information is not presented. Selected Income Statement Information The following summarizes selected income statement information by reportable segment: Three Months Ended Revenues Earnings (a) (MILLIONS OF DOLLARS) September 27, September 29, September 27, September 29, Reportable Segments: Biopharma $ 10,215 $ 9,952 $ 6,807 $ 6,506 Upjohn 1,916 2,351 1,009 1,384 Total reportable segments 12,131 12,303 7,816 7,890 Other business activities — 377 (1,939) (1,469) Reconciling Items: Corporate and other unallocated — — (1,192) (1,439) Purchase accounting adjustments — — (823) (1,141) Acquisition-related costs — — (11) (300) Certain significant items (b) — — (1,675) 7,187 $ 12,131 $ 12,680 $ 2,176 $ 10,727 Nine Months Ended Revenues Earnings (a) (MILLIONS OF DOLLARS) September 27, September 29, September 27, September 29, Reportable Segments: Biopharma $ 30,017 $ 28,429 $ 20,186 $ 18,461 Upjohn 5,944 8,535 3,367 5,635 Total reportable segments 35,961 36,964 23,554 24,096 Other business activities — 2,098 (4,958) (3,776) Reconciling Items: Corporate and other unallocated — — (3,437) (4,116) Purchase accounting adjustments — — (2,545) (3,357) Acquisition-related costs — — (46) (152) Certain significant items (b) — — (2,554) 6,495 $ 35,961 $ 39,062 $ 10,014 $ 19,190 (a) Income from continuing operations before provision/(benefit) for taxes on income . Biopharma’s earnings include dividend income of $44 million in the third quarter of 2020 and $43 million in the third quarter of 2019, and $196 million in the first nine months of 2020 and $184 million in the first nine months of 2019 from our investment in ViiV. See Note 4. (b) Certain significant items are substantive and/or unusual, and in some cases recurring, items (as noted above) that, either as a result of their nature or size, would not be expected to occur as part of our normal business on a regular basis. In the third quarter and first nine months of 2020, includes, among other items, intangible asset impairment charges of $900 million, recorded in Other (income)/deductions—net, related to IPR&D assets acquired in connection with our Array acquisition. In the third quarter and first nine months of 2019, includes, among other items, a pre-tax gain of $8.1 billion recorded in (Gain) on completion of Consumer Healthcare JV transaction associated with the completion of the GSK Consumer Healthcare joint venture transaction ( See Note 2 ). Certain significant items are discussed further in Note 3 and Note 4 . Equity in the net income of investees accounted for by the equity method is not significant for any of our operating segments. The operating segment information does not purport to represent the revenues, costs and income from continuing operations before provision for taxes on income that each of our operating segments would have recorded had each segment operated as a standalone company during the periods presented. B. Geographic Information The following summarizes revenues by geographic area: Three Months Ended Nine Months Ended (MILLIONS OF DOLLARS) September 27, September 29, % September 27, September 29, % United States $ 5,716 $ 5,850 (2) $ 16,770 $ 18,360 (9) Developed Europe (a) 2,087 2,135 (2) 6,095 6,450 (5) Developed Rest of World 1,634 1,585 3 4,642 4,758 (2) Emerging Markets 2,694 3,110 (13) 8,453 9,493 (11) Revenues $ 12,131 $ 12,680 (4) $ 35,961 $ 39,062 (8) (a) Revenues denominated in euros were $1.7 billion in the third quarter of 2020 and $1.7 billion in the third quarter of 2019, and were $4.9 billion in the first nine months of 2020 and $5.2 billion in the first nine months of 2019. C. Other Revenue Information Significant Product Revenues The following provides detailed revenue information for several of our major products: (MILLIONS OF DOLLARS) Three Months Ended Nine Months Ended PRODUCT PRIMARY INDICATION OR CLASS Sept. 27, 2020 Sept. 29, 2019 Sept. 27, 2020 Sept. 29, 2019 TOTAL REVENUES $ 12,131 $ 12,680 $ 35,961 $ 39,062 PFIZER BIOPHARMACEUTICALS GROUP (BIOPHARMA) $ 10,215 $ 9,952 $ 30,017 $ 28,429 Internal Medicine (a) $ 2,085 $ 2,128 $ 6,695 $ 6,508 Eliquis alliance revenues and direct sales Nonvalvular atrial fibrillation, deep vein thrombosis, pulmonary embolism 1,114 1,025 3,686 3,121 Chantix/Champix An aid to smoking cessation treatment in adults 18 years of age or older 223 276 728 825 Premarin family Symptoms of menopause 168 182 471 542 BMP2 Development of bone and cartilage 70 66 197 212 Toviaz Overactive bladder 59 61 183 186 All other Internal Medicine Various 451 517 1,429 1,621 Oncology $ 2,761 $ 2,350 $ 7,843 $ 6,547 Ibrance Metastatic breast cancer 1,357 1,283 3,955 3,677 Xtandi alliance revenues mCRPC, nmCRPC, mCSPC 266 225 741 594 Sutent Advanced and/or metastatic RCC, adjuvant RCC, refractory GIST (after disease progression on, or intolerance to, imatinib mesylate) and advanced pancreatic neuroendocrine tumor 202 224 616 704 Inlyta Advanced RCC 195 139 559 316 Xalkori ALK-positive and ROS1-positive advanced NSCLC 122 130 409 385 Bosulif Philadelphia chromosome–positive chronic myelogenous leukemia 111 90 324 267 Retacrit (b) Anemia 102 64 278 147 Lorbrena ALK-positive metastatic NSCLC 55 32 142 77 Braftovi In combination with Mektovi for metastatic melanoma for patients who test positive for a BRAF genetic mutation and, in combination with Erbitux ® (cetuximab), for the treatment of BRAF V600E -mutant metastatic colorectal cancer after prior therapy 42 18 116 18 Mektovi In combination with Braftovi for metastatic melanoma for patients who test positive for a BRAF genetic mutation 34 19 103 19 (MILLIONS OF DOLLARS) Three Months Ended Nine Months Ended PRODUCT PRIMARY INDICATION OR CLASS Sept. 27, 2020 Sept. 29, 2019 Sept. 27, 2020 Sept. 29, 2019 Ruxience (b) Non-hodgkin’s lymphoma, chronic lymphocytic leukemia, granulomatosis with polyangiitis (Wegener’s Granulomatosis) and microscopic polyangiitis 59 — 78 — All other Oncology Various 217 125 522 342 Hospital (a), (c) $ 1,728 $ 1,840 $ 5,535 $ 5,505 Sulperazon Bacterial infections 143 163 432 505 Medrol Anti-inflammatory glucocorticoid 87 109 295 348 Zithromax Bacterial infections 25 77 218 254 Precedex Sedation agent in surgery or intensive care 55 36 211 116 Vfend Fungal infections 52 87 201 265 Panzyga Primary humoral immunodeficiency 62 46 199 107 Fragmin Treatment/prevention of venous thromboembolism 60 62 178 185 Zyvox Bacterial infections 51 61 176 195 Pfizer CentreOne (d) Various 242 176 618 556 All other Anti-infectives Various 384 434 1,195 1,260 All other Hospital (c) Various 568 589 1,813 1,713 Vaccines $ 1,717 $ 1,808 $ 4,574 $ 4,795 Prevnar 13/Prevenar 13 Pneumococcal disease 1,534 1,603 4,100 4,268 Nimenrix Meningococcal disease 50 52 180 159 FSME/IMMUN-TicoVac Tick-borne encephalitis disease 77 64 170 197 All other Vaccines Various 56 89 124 171 Inflammation & Immunology (I&I) $ 1,173 $ 1,226 $ 3,299 $ 3,482 Xeljanz RA, PsA, UC, active polyarticular course juvenile idiopathic arthritis 654 599 1,741 1,634 Enbrel (Outside the U.S. and Canada) RA, juvenile idiopathic arthritis, PsA, plaque psoriasis, pediatric plaque psoriasis, ankylosing spondylitis and nonradiographic axial spondyloarthritis 321 415 1,005 1,285 Inflectra/Remsima (b) Crohn’s disease, pediatric Crohn’s disease, UC, pediatric UC, RA in combination with methotrexate, ankylosing spondylitis, PsA and plaque psoriasis 162 155 471 446 All other I&I Various 35 58 83 116 Rare Disease $ 752 $ 601 $ 2,071 $ 1,592 Vyndaqel/Vyndamax ATTR-cardiomyopathy and polyneuropathy 351 156 859 259 BeneFIX Hemophilia B 107 125 337 372 Genotropin Replacement of human growth hormone 107 124 316 357 Refacto AF/Xyntha Hemophilia A 92 104 272 319 Somavert Acromegaly 67 64 198 192 All other Rare Disease Various 27 28 89 94 UPJOHN (a) $ 1,916 $ 2,351 $ 5,944 $ 8,535 Lipitor Reduction of LDL cholesterol 356 476 1,191 1,506 Lyrica Epilepsy, post-herpetic neuralgia and diabetic peripheral neuropathy, fibromyalgia, neuropathic pain due to spinal cord injury 352 527 1,058 2,888 Norvasc Hypertension 183 219 601 735 Celebrex Arthritis pain and inflammation, acute pain 133 179 428 526 Viagra Erectile dysfunction 121 120 342 379 Effexor Depression and certain anxiety disorders 80 80 242 242 Zoloft Depression and certain anxiety disorders 76 74 233 217 EpiPen (a) Epinephrine injection used in treatment of life-threatening allergic reactions 58 74 194 197 Xalatan/Xalacom Glaucoma and ocular hypertension 62 68 188 201 Xanax Anxiety disorders 55 50 149 147 All other Upjohn Various 442 485 1,317 1,496 CONSUMER HEALTHCARE BUSINESS (e) $ — $ 377 $ — $ 2,098 Total Alliance revenues $ 1,250 $ 1,141 $ 4,036 $ 3,418 Total Biosimilars (b) $ 424 $ 236 $ 1,001 $ 632 Total Sterile Injectable Pharmaceuticals (f) $ 1,195 $ 1,248 $ 3,839 $ 3,703 (a) Beginning in 2020, Upjohn began managing our Meridian subsidiary, the manufacturer of EpiPen and other auto-injector products, and a pre-existing strategic collaboration between Pfizer and Mylan for generic drugs in Japan (Mylan-Japan). As a result, revenues associated with our Meridian subsidiary, except for product revenues for EpiPen sold in Canada, and Mylan-Japan, are reported in our Upjohn business beginning in the first quarter of 2020. We have reclassified revenues associated with our Meridian subsidiary and Mylan-Japan from the Hospital and Internal Medicine categories to the Upjohn business to conform 2019 product revenues to the current presentation. (b) Biosimilars are highly similar versions of approved and authorized biological medicines and primarily include revenues from Inflectra/Remsima, Retacrit and Ruxience. (c) Hospital is a business unit that commercializes our global portfolio of sterile injectable and anti-infective medicines. Hospital also includes Pfizer CentreOne (d) . All other Hospital primarily includes revenues from legacy Sterile Injectables Pharmaceuticals (SIP) products (that are not anti-infective products) and, to a much lesser extent, solid oral dose products (that are not anti-infective products). SIP anti-infective products that are not individually listed above are recorded in “All other Anti-infectives”. (d) Pfizer CentreOne includes revenues from our contract manufacturing and active pharmaceutical ingredient sales operation, including sterile injectables contract manufacturing, and revenues related to our manufacturing and supply agreements. (e) On July 31, 2019, Pfizer’s Consumer Healthcare business, an over-the-counter medicines business, was combined with GSK’s consumer healthcare business to form a new consumer healthcare joint venture. See Note 2B . (f) Total Sterile Injectable Pharmaceuticals represents the total of all branded and generic injectable products in the Hospital business, including anti-infective sterile injectable pharmaceuticals. |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 27, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent EventAgreement to Combine Upjohn with Mylan––On July 29, 2019, we announced an agreement to combine Upjohn with Mylan, creating a new global pharmaceutical company, Viatris. The transaction is structured as an all-stock, Reverse Morris Trust transaction, under which Upjohn will be spun off to our shareholders and, immediately thereafter, combined with Mylan. Pfizer shareholders would own 57% of the combined new company, and former Mylan shareholders would own 43%. The transaction was approved by Mylan’s shareholders in June 2020. In October 2020, Pfizer and Mylan announced that the FTC accepted a proposed consent order, which concluded the FTC’s review of the proposed combination of Mylan and Pfizer’s Upjohn business, and that the parties have now obtained all required antitrust clearances for the proposed transaction. Also, in October 2020, Pfizer announced that it had set the close of business on November 13, 2020 as the record date for the proposed spin-off and that the transaction is expected to close on November 16, 2020, subject to customary closing conditions. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 27, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation We prepared the condensed consolidated financial statements following the requirements of the SEC for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP can be condensed or omitted. The financial information included in our condensed consolidated financial statements for subsidiaries operating outside the U.S. is as of and for the three and nine months ended August 23, 2020 and August 25, 2019. The financial information included in our condensed consolidated financial statements for U.S. subsidiaries is as of and for the three and nine months ended September 27, 2020 and September 29, 2019. Revenues, expenses, assets and liabilities can vary during each quarter of the year. Therefore, the results and trends in these interim financial statements may not be representative of those for the full year. We are responsible for the unaudited financial statements included in this Quarterly Report on Form 10-Q. The interim financial statements include all normal and recurring adjustments that are considered necessary for the fair statement of results for the interim periods presented. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in our 2019 Financial Report. At the beginning of our 2019 fiscal year, we began to manage our commercial operations through a new global structure consisting of three business segments––Biopharma, Upjohn and through July 31, 2019, Consumer Healthcare. Biopharma and Upjohn are the only reportable segments. See Note 14 . Beginning in 2020, Upjohn began managing our Meridian subsidiary, the manufacturer of EpiPen and other auto-injector products, and a pre-existing strategic collaboration between Pfizer and Mylan for generic drugs in Japan (Mylan-Japan). As a result, revenues and expenses associated with Meridian and Mylan-Japan are reported in our Upjohn business beginning in the first quarter of 2020. In 2019, revenues and expenses from Meridian and Mylan-Japan were recorded in our Biopharma business. We performed certain reclassifications between the Biopharma and Upjohn segments to conform 2019 segment revenues and expenses associated with Meridian and Mylan-Japan to the current presentation. There was no impact to our consolidated financial statements. See Note 14. Acquisitions and other business development activities completed in 2019 and in the first nine months of 2020, including the contribution of our Consumer Healthcare business to the GSK Consumer Healthcare joint venture, impacted financial results in the periods presented. See Notes to Consolidated Financial Statements— Note 1A. Basis of Presentation and Significant Accounting Policies: Basis of Presentation in our 2019 Financial Report, and Note 2. Certain amounts in the condensed consolidated financial statements and associated notes may not add due to rounding. All percentages have been calculated using unrounded amounts. |
Adoption of New Accounting Standards | Adoption of New Accounting Standards in 2020 On January 1, 2020, we adopted four new accounting standards. Credit Losses on Financial Instruments ––We adopted a new accounting standard for credit losses on financial instruments, which replaces the probable initial recognition threshold for incurred loss estimates under prior guidance with a methodology that reflects expected credit loss estimates. The standard generally impacts financial assets that have a contractual right to receive cash and are not accounted for at fair value through net income, such as accounts receivable and held-to-maturity debt securities. The new guidance requires us to identify, analyze, document and support new methodologies for quantifying expected credit loss estimates for certain financial instruments, using information such as historical experience, current economic conditions and information, and the use of reasonable and supportable forecasted information. The standard also amends existing impairment guidance for available-for-sale debt securities to incorporate a credit loss allowance and allows for reversals of credit impairments in the event the issuer’s credit improves. We adopted the new accounting standard utilizing the modified retrospective method and, therefore, no adjustments were made to amounts in our prior period financial statements. The cumulative effect of adopting the standard as an adjustment to the opening balance of Retained earnings was not material. The impact of adoption did not have a material impact on our condensed consolidated statements of income for the three and nine months ended September 27, 2020 or condensed consolidated statement of cash flows for the nine months ended September 27, 2020, nor on our condensed consolidated balance sheet as of September 27, 2020. See Note 1C . Goodwill Impairment Testing ––We prospectively adopted the new standard, which eliminates the requirement to perform a hypothetical purchase price allocation to measure goodwill impairment. Under the new guidance, the goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount, and recognizing an impairment charge for the amount by which the carrying amount of the reporting unit exceeds its fair value. There was no impact to our condensed consolidated financial statements from the adoption of this new standard. Implementation Costs in a Cloud Computing Arrangement ––We prospectively adopted the new standard related to customers’ accounting for implementation costs incurred in a cloud computing arrangement that is considered a service contract. The new guidance aligns the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The adoption of this guidance did not have a material impact on our condensed consolidated financial statements. Collaboration Agreements ––We prospectively adopted the new standard, which provides new guidance clarifying the interaction between the accounting for collaborative arrangements and revenue from contracts with customers. There was no impact to our condensed consolidated financial statements from the adoption of this new standard. |
Revenues and Trade Accounts Receivable | Revenues and Trade Accounts Receivable Deductions from Revenues–– Our accruals for Medicare rebates, Medicaid and related state program rebates, performance-based contract rebates, chargebacks, sales allowances and sales returns and cash discounts are as follows: (MILLIONS OF DOLLARS) September 27, 2020 December 31, 2019 Reserve against Trade accounts receivable, less allowance for doubtful accounts $ 1,126 $ 1,257 Other current liabilities : Accrued rebates 3,270 3,285 Other accruals 573 581 Other noncurrent liabilities 622 565 Total accrued rebates and other accruals $ 5,591 $ 5,689 Trade Accounts Receivable–– Trade accounts receivable are stated at their net realizable value. The allowance for credit losses against gross trade accounts receivable reflects the best estimate of expected credit losses of the receivables portfolio determined on the basis of historical experience, current information, and forecasts of future economic conditions. In developing the estimate for expected credit losses, trade accounts receivables are segmented into pools of assets depending on market (U.S. versus international), delinquency status, and customer type (high risk versus low risk and government versus non-government), and fixed reserve percentages are established for each pool of trade accounts receivables. In determining the reserve percentages for each pool of trade accounts receivables, we considered our historical experience with certain customers and customer types, regulatory and legal environments, country and political risk, and other relevant current and future forecasted macroeconomic factors. These credit risk indicators are monitored on a quarterly basis to determine whether there have been any changes in the economic environment that would indicate the established reserve percentages should be adjusted, and are considered on a regional basis to reflect more geographic-specific metrics. Additionally, write-offs and recoveries of customer receivables are tracked against collections on a quarterly basis to determine whether the reserve percentages remain appropriate. When management becomes aware of certain customer-specific factors that impact credit risk, specific allowances for these known troubled accounts are recorded. Trade accounts receivable are written off after all reasonable means to collect the full amount (including litigation, where appropriate) have been exhausted. |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 27, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Balance Sheet Classification of Accruals | Our accruals for Medicare rebates, Medicaid and related state program rebates, performance-based contract rebates, chargebacks, sales allowances and sales returns and cash discounts are as follows: (MILLIONS OF DOLLARS) September 27, 2020 December 31, 2019 Reserve against Trade accounts receivable, less allowance for doubtful accounts $ 1,126 $ 1,257 Other current liabilities : Accrued rebates 3,270 3,285 Other accruals 573 581 Other noncurrent liabilities 622 565 Total accrued rebates and other accruals $ 5,591 $ 5,689 |
Acquisition, Equity-Method In_2
Acquisition, Equity-Method Investment and Licensing Arrangements (Tables) | 9 Months Ended |
Sep. 27, 2020 | |
Business Combinations, Disposal Groups, Including Discontinued Operations, Equity Method Investments And Research And Development Arrangement [Abstract] | |
Equity Method Investment | Summarized financial information for our equity method investee, GSK Consumer Healthcare, as of and for the three and nine months ending June 30, 2020, the most recent period available, is as follows: (MILLIONS OF DOLLARS) June 30, Current assets $ 7,136 Noncurrent assets 37,108 Total assets $ 44,244 Current liabilities $ 4,992 Noncurrent liabilities 5,195 Total liabilities $ 10,187 Equity attributable to shareholders $ 33,919 Equity attributable to noncontrolling interests 138 Total net equity $ 34,057 (MILLIONS OF DOLLARS) Three Months Ended June 30, 2020 Nine Months Ended Net sales $ 2,927 $ 9,618 Cost of sales (1,061) (4,266) Gross profit $ 1,866 $ 5,352 Income from continuing operations 524 995 Net income 524 995 Income attributable to shareholders 518 959 |
Restructuring Charges and Oth_2
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives (Tables) | 9 Months Ended |
Sep. 27, 2020 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Components of Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives | The following summarizes acquisitions and cost-reduction/productivity initiatives costs and credits: Three Months Ended Nine Months Ended (MILLIONS OF DOLLARS) September 27, September 29, September 27, September 29, Restructuring charges/(credits): Employee terminations $ (15) $ 82 $ 357 $ (86) Asset impairments 22 3 45 3 Exit costs/(credits) (11) (1) (9) 33 Restructuring charges/(credits) (a) (4) 83 392 (50) Transaction costs (b) — 65 14 65 Integration costs and other (c) 7 217 29 281 Restructuring charges and certain acquisition-related costs 4 365 435 295 Net periodic benefit costs recorded in Other (income)/deductions––net — 9 29 19 Additional depreciation––asset restructuring recorded in our condensed consolidated statements of income as follows (d) : Cost of sales 4 6 14 21 Selling, informational and administrative expenses — — — 2 Research and development expenses — — (3) 6 Total additional depreciation––asset restructuring 4 6 10 29 Implementation costs recorded in our condensed consolidated statements of income as follows (e) : Cost of sales 11 14 32 45 Selling, informational and administrative expenses 36 23 114 48 Research and development expenses 1 3 2 16 Total implementation costs 48 40 148 109 Total costs associated with acquisitions and cost-reduction/productivity initiatives $ 56 $ 420 $ 621 $ 452 (a) In the first nine months of 2020, restructuring charges mainly represent employee termination costs associated with our Transforming to a More Focused Company cost-reduction program. In the third quarter of 2019, restructuring charges mainly represented employee termination costs associated with cost-reduction and productivity initiatives as well as our acquisition of Array. In the first nine months of 2019, restructuring credits mostly represented the reversal of certain accruals related to our acquisition of Wyeth upon the effective favorable settlement of an IRS audit for multiple tax years, partially offset by employee termination costs associated with cost-reduction and productivity initiatives, as well as our acquisition of Array. See Notes to Consolidated Financial Statements–– Note 5D. Tax Matters: Tax Contingencies in our 2019 Financial Report. The restructuring activities for 2020 are associated with the following: • For the third quarter of 2020, Biopharma ($6 million charge); Upjohn ($3 million credit); and Other ($7 million credit). • For the first nine months of 2020, Biopharma ($3 million credit); Upjohn ($10 million charge); and Other ($386 million charge). The restructuring activities for 2019 are associated with the following: • For the third quarter of 2019, Biopharma ($10 million charge); Upjohn ($6 million credit); and Other ($79 million charge). • For the first nine months of 2019, Biopharma ($38 million credit); Upjohn ($27 million credit); and Other ($15 million charge). Restructuring costs identified as Other are for restructuring activities associated with corporate enabling functions, WRDM, GPD and other manufacturing and commercial operations, as applicable. For the first nine months of 2020, restructuring costs identified as Other primarily relate to corporate enabling functions. (b) Transaction costs represent external costs for banking, legal, accounting and other similar services. (c) Integration costs and other represent external, incremental costs directly related to integrating acquired businesses, such as expenditures for consulting and the integration of systems and processes, and certain other qualifying costs. In the third quarter and first nine months of 2020, integration costs and other were mostly related to our acquisition of Array. In the third quarter and first nine months of 2019, integration costs and other primarily included $157 million in payments to Array employees for the fair value of previously unvested stock options that was recognized as post-closing compensation expense. See Notes to Consolidated Financial Statements–– Note 2A. Acquisitions, Divestitures, Equity-Method Investments and Assets and Liabilities Held for Sale, Licensing Arrangements and Research and Development and Collaborative Arrangements: Acquisitions in our 2019 Financial Report. (d) Additional depreciation––asset restructuring represents the impact of changes in the estimated useful lives of assets involved in restructuring actions. (e) Implementation costs represent external, incremental costs directly related to implementing our non-acquisition-related cost-reduction/productivity initiatives. |
Schedule of Components of and Changes in Restructuring Accruals | The following summarizes the components and changes in restructuring accruals: (MILLIONS OF DOLLARS) Employee Asset Exit Costs Accrual Balance, December 31, 2019 (a) $ 887 $ — $ 46 $ 933 Provision 357 45 (9) 392 Utilization and other (b) (411) (45) (23) (479) Balance, September 27, 2020 (c) $ 832 $ — $ 14 $ 847 (a) Included in Other current liabilities ($714 million) and Other noncurrent liabilities ($219 million). (b) Includes adjustments for foreign currency translation. (c) Included in Other current liabilities ($607 million) and Other noncurrent liabilities ($240 million). |
Other (Income)_Deductions - N_2
Other (Income)/Deductions - Net (Tables) | 9 Months Ended |
Sep. 27, 2020 | |
Other Income and Expenses [Abstract] | |
Schedule of Other (Income)/Deductions - Net | Components of Other (income)/deductions––net include: Three Months Ended Nine Months Ended (MILLIONS OF DOLLARS) September 27, September 29, September 27, September 29, Interest income (a) $ (17) $ (60) $ (70) $ (185) Interest expense (a) 416 409 1,178 1,158 Net interest expense 399 348 1,108 973 Royalty-related income (214) (155) (525) (475) Net gains on asset disposals (2) (32) — (33) Net (gains)/losses recognized during the period on equity securities (b) 70 (6) (408) (153) Income from collaborations, out-licensing arrangements and sales of compound/product rights (c) (30) (20) (245) (124) Net periodic benefit costs/(credits) other than service costs (d) 54 (19) (122) (110) Certain legal matters, net 38 64 64 84 Certain asset impairments (e) 900 28 900 188 Business and legal entity alignment costs (f) — 87 — 343 Net losses on early retirement of debt — — — 138 GSK Consumer Healthcare JV equity method (income)/loss (g) (103) — (196) — Other, net (h) 38 24 (69) (294) Other (income)/deductions––net $ 1,148 $ 319 $ 507 $ 537 (a) Interest income decreased in the third quarter and first nine months of 2020, primarily driven by a lower investment balance and lower short-term rates. Interest expense remained relatively flat in the third quarter and first nine months of 2020, mainly as a result of the issuance of new debt related to the planned combination of Mylan and Upjohn, offset by lower rates on commercial paper. See Note 7D . (b) The losses in the third quarter of 2020 include, among other things, unrealized losses of $131 million related to our investment in Allogene. The gains in the first nine months of 2020 include, among other things, unrealized gains of $243 million related to our investment in Allogene and unrealized gains of $154 million related to our investment in BioNTech. The gains in the first nine months of 2019 included, among other things, unrealized gains of $115 million related to our investments in Cortexyme, Inc. and SpringWorks Therapeutics, Inc. For additional information on investments, see Note 7B . (c) Includes income from upfront and milestone payments from our collaboration partners and income from out-licensing arrangements and sales of compound/product rights. The first nine months of 2020 mainly includes, among other things, (i) an upfront payment to us of $75 million from our sale of our CK1 assets to Biogen, Inc., (ii) $40 million of milestone income from Puma Biotechnology, Inc. related to Neratinib regulatory approvals in the EU and (iii) $30 million of milestone income from Lilly related to the first commercial sale in the U.S. of LOXO-292 for the treatment of RET fusion-positive NSCLC. The first nine months of 2019 primarily included, among other things, $70 million in milestone income from Mylan Pharmaceuticals Inc. related to the FDA’s approval and launch of Wixela Inhub ® , a generic of Advair Diskus ® . (d) See Note 10 . (e) The third quarter and first nine months of 2020 include intangible asset impairment charges of $900 million related to Biopharma IPR&D assets for unapproved indications of certain cancer medicines, acquired in connection with our Array acquisition, and reflect, among other things, updated commercial forecasts. The first nine months of 2019 included intangible asset impairment charges of: (i) $90 million related to WRDM IPR&D, for a pre-clinical stage asset from our acquisition of Bamboo for gene therapies for the potential treatment of patients with certain rare diseases, which was the result of a determination to not use certain Bamboo IPR&D acquired in future rare disease development, (ii) $40 million related to an Upjohn finite-lived developed technology right, acquired in connection with our acquisition of King, for government defense products and reflected, among other things, updated commercial forecasts including manufacturing cost assumptions, and (iii) $10 million related to a Biopharma finite-lived developed technology right, acquired in connection with our acquisition of Anacor, for the treatment for toenail fungus marketed in the U.S. market only, and reflected, among other things, updated commercial forecasts. The first nine months of 2019 also included other asset impairments of $48 million . (f) In the third quarter and first nine months of 2019, represents incremental costs associated with the design, planning and implementation of our new organizational structure, effective in the beginning of 2019, and primarily includes consulting, legal, tax and advisory services. (g) The income for the third quarter and first nine months of 2020 represents our pro-rata share of earnings from the GSK Consumer Healthcare joint venture, partially offset by equity method basis difference write-offs and amortization. See Note 2B . (h) The third quarter of 2020 includes, among other things, charges of $144 million related to the remeasurement of Euro debt issued by Upjohn Finance B.V. in the second quarter of 2020 (see Note 7D ) and dividend income of $44 million from our investment in ViiV. The first nine months of 2020 includes, among other things, dividend income of $196 million from our investment in ViiV and charges of $110 million, reflecting the change in the fair value of contingent consideration. The third quarter of 2019 included, among other things, dividend income of $43 million from our investment in ViiV and charges of $121 million for external incremental costs, such as transaction costs and costs to separate our Consumer Healthcare business into a separate legal entity, associated with the formation of the GSK Consumer Healthcare joint venture. The first nine months of 2019 included, among other things, (i) dividend income of $184 million from our investment in ViiV, (ii) charges of $146 million for external incremental costs, such as transaction costs and costs to separate our Consumer Healthcare business into a separate legal entity, associated with the formation of the GSK Consumer Healthcare joint venture, and (iii) $50 million of income from insurance recoveries related to Hurricane Maria. |
Schedule of Impaired Intangible Assets | Additional information about the intangible assets that were impaired during 2020 in Other (income)/deductions follows : Fair Value (a) Nine Months Ended September 27, 2020 (MILLIONS OF DOLLARS) Amount Level 1 Level 2 Level 3 Impairment Intangible assets –– IPR&D (b) $ 1,100 $ — $ — $ 1,100 $ 900 (a) The fair value amount is presented as of the date of impairment, as these assets are not measured at fair value on a recurring basis. (b) Reflects intangible assets written down to fair value in the first nine months of 2020. Fair value was determined using the income approach, specifically the multi-period excess earnings method, also known as the discounted cash flow method. We started with a forecast of all the expected net cash flows associated with the asset and then applied an asset-specific discount rate to arrive at a net present value amount. Some of the more significant estimates and assumptions inherent in this approach include: the amount and timing of the projected net cash flows, which includes the expected impact of competitive, legal and/or regulatory forces on the product; the discount rate, which seeks to reflect the various risks inherent in the projected cash flows; and the tax rate, which seeks to incorporate the geographic diversity of the projected cash flows. |
Tax Matters (Tables)
Tax Matters (Tables) | 9 Months Ended |
Sep. 27, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Tax Provision/(Benefit) on Other Comprehensive Income (Loss) | Components of Tax provision/(benefit) on other comprehensive income/(loss) include: Three Months Ended Nine Months Ended (MILLIONS OF DOLLARS) September 27, September 29, September 27, September 29, Foreign currency translation adjustments, net (a) $ 47 $ 86 $ (144) $ 96 Unrealized holding gains/(losses) on derivative financial instruments, net (43) 31 (126) 37 Reclassification adjustments for (gains)/losses included in net income 7 (3) (13) (62) (37) 28 (139) (24) Unrealized holding gains/(losses) on available-for-sale securities, net 30 2 29 6 Reclassification adjustments for (gains)/losses included in net income (11) (1) (3) 4 19 1 26 10 Benefit plans: actuarial gains/(losses), net (288) (41) (308) (42) Reclassification adjustments related to amortization 15 23 46 41 Reclassification adjustments related to settlements, net 40 9 52 10 Other (48) (1) (28) 2 (281) (10) (238) 12 Reclassification adjustments related to amortization of prior service costs and other, net (11) (11) (32) (33) Reclassification adjustments related to curtailments of prior service costs and other, net — (11) — (11) Other (1) 1 1 1 (11) (21) (31) (43) Tax provision/(benefit) on other comprehensive income/(loss) $ (262) $ 84 $ (527) $ 50 (a) Taxes are not provided for foreign currency translation adjustments relating to investments in international subsidiaries that will be held indefinitely. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss, Excluding Noncontrolling Interests (Tables) | 9 Months Ended |
Sep. 27, 2020 | |
Equity [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Loss | The following summarizes the changes, net of tax, in Accumulated other comprehensive loss : Net Unrealized Gains/(Losses) Benefit Plans (MILLIONS OF DOLLARS) Foreign Currency Translation Adjustments Derivative Financial Instruments Available-For-Sale Securities Actuarial Gains/(Losses) Prior Service (Costs)/Credits and Other Accumulated Other Comprehensive Income/(Loss) Balance, December 31, 2019 $ (5,952) $ 20 $ (35) $ (6,257) $ 584 $ (11,640) Other comprehensive income/(loss) (a) 249 (546) 179 (817) (102) (1,036) Balance, September 27, 2020 $ (5,703) $ (526) $ 144 $ (7,074) $ 482 $ (12,676) (a) Amounts do not include foreign currency translation adjustments attributable to noncontrolling interests of $9 million loss for the first nine months of 2020. Foreign currency translation adjustments primarily include gains from the strengthening of certain major currencies against the U.S. dollar, partially offset by net after-tax losses related to foreign currency translation adjustments and the impact of our net investment hedging program, both attributable to our equity method investment in GSK Consumer Healthcare joint venture (see Note 2B ). The actuarial gains/(losses) activity mainly reflects interim U.S. Pfizer Consolidated Pension remeasurements, which resulted in an increase of $1.2 billion in the pension plan liability, primarily due to a reduction in the discount rate since December 31, 2019. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Sep. 27, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Measured At Fair Value On a Recurring Basis | Financial Assets and Liabilities Measured at Fair Value using a Market Approach on a Recurring Basis and Fair Value Hierarchy: September 27, 2020 December 31, 2019 (MILLIONS OF DOLLARS) Total Level 1 Level 2 Total Level 1 Level 2 Financial assets: Short-term investments Classified as equity securities with readily determinable fair values: Money market funds (a) $ 12,273 $ — $ 12,273 $ 705 $ — $ 705 Classified as available-for-sale debt securities: Government and agency—non-U.S. 5,906 — 5,906 4,863 — 4,863 Government and agency—U.S. 582 — 582 811 — 811 Corporate and other 1,371 — 1,371 1,013 — 1,013 7,859 — 7,859 6,687 — 6,687 Total short-term investments 20,132 — 20,132 7,392 — 7,392 Other current assets Derivative assets: Interest rate contracts 16 — 16 53 — 53 Foreign exchange contracts 321 — 321 413 — 413 Total other current assets 337 — 337 465 — 465 Long-term investments Classified as equity securities with readily determinable fair values (b) 2,092 2,063 28 1,902 1,863 39 Classified as available-for-sale debt securities: Government and agency—U.S. 142 — 142 303 — 303 Corporate and other 7 — 7 11 — 11 149 — 149 315 — 315 Total long-term investments 2,241 2,063 178 2,216 1,863 354 Other noncurrent assets Derivative assets: Interest rate contracts 131 — 131 266 — 266 Foreign exchange contracts 100 — 100 261 — 261 Total derivative assets 231 — 231 526 — 526 Insurance contracts (c) 626 — 626 575 — 575 Total other noncurrent assets 857 — 857 1,102 — 1,102 Total assets $ 23,567 $ 2,063 $ 21,504 $ 11,176 $ 1,863 $ 9,313 Financial liabilities: Other current liabilities Derivative liabilities: Foreign exchange contracts $ 464 $ — $ 464 $ 114 $ — $ 114 Total other current liabilities 464 — 464 114 — 114 Other noncurrent liabilities Derivative liabilities: Foreign exchange contracts 808 — 808 604 — 604 Total other noncurrent liabilities 808 — 808 604 — 604 Total liabilities $ 1,272 $ — $ 1,272 $ 718 $ — $ 718 (a) As of September 27, 2020, $11.4 billion of proceeds from the Upjohn debt transactions (see Note 7D ) are invested in money market funds and included in Restricted short-term investments in the condensed consolidated balance sheet. (b) As of September 27, 2020, long-term equity securities of $181 million and as of December 31, 2019, long-term equity securities of $176 million were held in restricted trusts for employee benefit plans. (c) Includes life insurance policies held in restricted trusts attributable to the funding of various U.S. non-qualified employee benefit plans. The underlying invested assets in these insurance contracts are marketable securities, which are carried at fair value, with changes in fair value recognized in Other (income)/deductions—net in the condensed consolidated statements of income (see Note 4 ) . |
Schedule of Financial Liabilities Not Measured At Fair Value On a Recurring Basis | The following summarizes the financial liabilities not measured at fair value on a recurring basis, including the carrying values and estimated fair values using a market approach: September 27, 2020 December 31, 2019 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value (MILLIONS OF DOLLARS) Total Level 2 Total Level 2 Financial Liabilities Long-term debt, excluding the current portion (a) $ 49,785 $ 59,073 $ 59,073 $ 35,955 $ 40,842 $ 40,842 (a) As of September 27, 2020, $11.4 billion of proceeds from the Upjohn debt transactions (see Note 7D ) are invested in money market funds and included in Restricted short-term investments in the condensed consolidated balance sheet. |
Investments by Classification Type | The following summarizes our investments by classification type: (MILLIONS OF DOLLARS) September 27, 2020 December 31, 2019 Short-term investments Equity securities with readily determinable fair values (a) $ 12,273 $ 705 Available-for-sale debt securities 7,859 6,687 Held-to-maturity debt securities 193 1,133 Total Short-term investments $ 20,325 $ 8,525 Long-term investments Equity securities with readily determinable fair values $ 2,092 $ 1,902 Available-for-sale debt securities 149 315 Held-to-maturity debt securities 37 42 Private equity securities at cost 780 756 Total Long-term investments $ 3,059 $ 3,014 Equity-method investments 15,949 17,133 Total long-term investments and equity-method investments $ 19,008 $ 20,147 Held-to-maturity cash equivalents $ 130 $ 163 (a) As of September 27, 2020 and December 31, 2019, included money market funds primarily invested in U.S. Treasury and government debt. As of September 27, 2020, $11.4 billion of proceeds from the Upjohn debt transactions (see Note 7D ) are invested in money market funds and included in Restricted short-term investments in the condensed consolidated balance sheet. |
Schedule of Held-to-maturity Securities | At September 27, 2020, our investment securities portfolio consisted of debt securities that were virtually all investment-grade. Information on investments in debt securities at September 27, 2020 and December 31, 2019 is as follows, including the contractual maturities, or as necessary, the estimated maturities, of the available-for-sale and held-to-maturity debt securities as of September 27, 2020: September 27, 2020 December 31, 2019 Gross Unrealized Maturities (in Years) Gross Unrealized (MILLIONS OF DOLLARS) Amortized Cost Gains Losses Fair Value Within 1 Over 1 Over 5 Total Amortized Cost Gains Losses Fair Value Available-for-sale debt securities Government and agency –– non-U.S. $ 5,743 $ 164 $ (1) $ 5,906 $ 5,906 $ — $ — $ 5,906 $ 4,895 $ 6 $ (38) $ 4,863 Government and agency––U.S. 726 — (1) 725 582 142 — 725 1,120 — (6) 1,114 Corporate and other (a) 1,379 3 (5) 1,378 1,371 7 — 1,378 1,027 — (2) 1,025 Held-to-maturity debt securities Time deposits and other 290 — — 290 258 10 23 290 535 — — 535 Government and agency –– non-U.S. 70 — — 70 65 — 5 70 803 — — 803 Total debt securities $ 8,208 $ 168 $ (7) $ 8,369 $ 8,182 $ 159 $ 28 $ 8,369 $ 8,380 $ 6 $ (47) $ 8,340 (a) Primarily issued by a diverse group of corporations. |
Schedule of Available-for-sale Securities | At September 27, 2020, our investment securities portfolio consisted of debt securities that were virtually all investment-grade. Information on investments in debt securities at September 27, 2020 and December 31, 2019 is as follows, including the contractual maturities, or as necessary, the estimated maturities, of the available-for-sale and held-to-maturity debt securities as of September 27, 2020: September 27, 2020 December 31, 2019 Gross Unrealized Maturities (in Years) Gross Unrealized (MILLIONS OF DOLLARS) Amortized Cost Gains Losses Fair Value Within 1 Over 1 Over 5 Total Amortized Cost Gains Losses Fair Value Available-for-sale debt securities Government and agency –– non-U.S. $ 5,743 $ 164 $ (1) $ 5,906 $ 5,906 $ — $ — $ 5,906 $ 4,895 $ 6 $ (38) $ 4,863 Government and agency––U.S. 726 — (1) 725 582 142 — 725 1,120 — (6) 1,114 Corporate and other (a) 1,379 3 (5) 1,378 1,371 7 — 1,378 1,027 — (2) 1,025 Held-to-maturity debt securities Time deposits and other 290 — — 290 258 10 23 290 535 — — 535 Government and agency –– non-U.S. 70 — — 70 65 — 5 70 803 — — 803 Total debt securities $ 8,208 $ 168 $ (7) $ 8,369 $ 8,182 $ 159 $ 28 $ 8,369 $ 8,380 $ 6 $ (47) $ 8,340 (a) Primarily issued by a diverse group of corporations. |
Contractual Maturities of Available-for-sale and Held-to-maturity Debt Securities | At September 27, 2020, our investment securities portfolio consisted of debt securities that were virtually all investment-grade. Information on investments in debt securities at September 27, 2020 and December 31, 2019 is as follows, including the contractual maturities, or as necessary, the estimated maturities, of the available-for-sale and held-to-maturity debt securities as of September 27, 2020: September 27, 2020 December 31, 2019 Gross Unrealized Maturities (in Years) Gross Unrealized (MILLIONS OF DOLLARS) Amortized Cost Gains Losses Fair Value Within 1 Over 1 Over 5 Total Amortized Cost Gains Losses Fair Value Available-for-sale debt securities Government and agency –– non-U.S. $ 5,743 $ 164 $ (1) $ 5,906 $ 5,906 $ — $ — $ 5,906 $ 4,895 $ 6 $ (38) $ 4,863 Government and agency––U.S. 726 — (1) 725 582 142 — 725 1,120 — (6) 1,114 Corporate and other (a) 1,379 3 (5) 1,378 1,371 7 — 1,378 1,027 — (2) 1,025 Held-to-maturity debt securities Time deposits and other 290 — — 290 258 10 23 290 535 — — 535 Government and agency –– non-U.S. 70 — — 70 65 — 5 70 803 — — 803 Total debt securities $ 8,208 $ 168 $ (7) $ 8,369 $ 8,182 $ 159 $ 28 $ 8,369 $ 8,380 $ 6 $ (47) $ 8,340 (a) Primarily issued by a diverse group of corporations. |
Schedule of Gains and Losses on Investment Securities | The following presents the calculation of the portion of unrealized (gains)/losses that relates to equity securities, excluding equity method investments, still held at the reporting date: Three Months Ended Nine Months Ended (MILLIONS OF DOLLARS) September 27, September 29, September 27, September 29, Net (gains)/losses recognized during the period on equity securities (a ) $ 70 $ (6) $ (408) $ (153) Less: Net (gains)/losses recognized during the period on equity securities sold during the period 2 (3) (16) (13) Net unrealized (gains)/losses during the reporting period on equity securities still held at the reporting date (b) $ 68 $ (3) $ (391) $ (140) (a) Reported in Other (income)/deductions –– net. See Note 4 . (b) Included in net unrealized gains are observable price changes on equity securities without readily determinable fair values. Since January 1, 2018, there were cumulative impairments and downward adjustments of $82 million and upward adjustments of $63 million. Impairments, downward and upward adjustments were not significant in the third quarters and the first nine months of 2020 and 2019. |
Schedule of Short-term Borrowings | Short-term borrowings include: (MILLIONS OF DOLLARS) September 27, December 31, 2019 Commercial paper $ 10,990 $ 13,915 Current portion of long-term debt, principal amount 2,152 1,458 Other short-term borrowings, principal amount (a) 226 860 Total short-term borrowings, principal amount 13,367 16,233 Net fair value adjustments related to hedging and purchase accounting — 5 Net unamortized discounts, premiums and debt issuance costs (4) (43) Total Short-term borrowings, including current portion of long-term debt , carried at historical proceeds, as adjusted $ 13,363 $ 16,195 (a) Other short-term borrowings primarily include cash collateral. See Note 7E . |
Schedule of Principal Amounts of Senior Unsecured Long-Term Debt and Adjustments | In the second quarter of 2020, we issued the following senior unsecured notes: (MILLIONS OF DOLLARS) Principal Interest Rate Maturity Date As of Pfizer Inc. (a) 0.800% May 28, 2025 $ 750 1.700% May 28, 2030 1,000 2.550% May 28, 2040 1,000 2.700% May 28, 2050 1,250 $ 4,000 Upjohn Inc., a wholly-owned subsidiary of Pfizer Inc. (b) 1.125% June 22, 2022 $ 1,000 1.650% June 22, 2025 750 2.300% June 22, 2027 750 2.700% June 22, 2030 1,450 3.850% June 22, 2040 1,500 4.000% June 22, 2050 2,000 $ 7,450 Upjohn Finance B.V., a wholly-owned subsidiary of Upjohn Inc. (b) 0.816% June 23, 2022 € 750 1.023% June 23, 2024 750 1.362% June 23, 2027 850 1.908% June 23, 2032 1,250 € 3,600 (a) The notes may be redeemed by us at any time, in whole, or in part, at varying redemption prices plus accrued and unpaid interest. The weighted-average effective interest rate for the notes at issuance was 2.11%. (b) In June 2020, Upjohn Inc. and Upjohn Finance B.V. completed privately placed debt offerings in connection with the previously announced proposed Reverse Morris Trust transaction that will ultimately combine Upjohn and Mylan to form a new company, Viatris. The notes may be redeemed by Upjohn Inc. and Upjohn Finance B.V., as applicable, at any time, in whole, or in part, at varying redemption prices plus accrued and unpaid interest. The weighted-average effective interest rates at issuance were 2.95% for the $7.45 billion notes and 1.37% for the €3.60 billion notes. If the proposed transaction with Mylan does not close on or prior to February 1, 2021, or if, prior to such date, Upjohn Inc. and Mylan notify the trustee that the business combination agreement for the proposed transaction with Mylan is terminated, or the transaction will not otherwise be pursued, the notes must be redeemed at redemption prices equal to 101% of their respective principal amounts, plus accrued and unpaid interest. Pfizer has guaranteed these notes, and such guarantees will automatically and unconditionally terminate without the consent of holders of the notes upon the proposed distribution to Pfizer’s stockholders of all of the issued and outstanding shares of Upjohn Inc.’s common stock held by Pfizer (the Distribution). Upjohn Inc. has guaranteed the notes issued by Upjohn Finance B.V., and Upjohn Inc. will remain a guarantor of such notes post Distribution. Following the separation, Upjohn Inc. and Upjohn Finance B.V., as applicable, will remain the obligor. The proceeds from the financings will be used in part to fund a cash distribution from Upjohn Inc. to Pfizer immediately prior to the Distribution. In the interim, the $11.4 billion of proceeds are classified as Restricted short-term investments in the condensed consolidated balance sheet as of September 27, 2020 pursuant to the terms of the transaction agreements. In the first quarter of 2020, we issued the following senior unsecured notes at a weighted average effective interest rate of 2.67%: (MILLIONS OF DOLLARS) Principal Interest Rate Maturity Date As of 2.625% (a) April 1, 2030 $ 1,250 (a) The notes may be redeemed by us at any time, in whole, or in part, at a redemption price plus accrued and unpaid interest. The following summarizes the aggregate principal amount of our senior unsecured long-term debt, and adjustments to report our aggregate long-term debt: (MILLIONS OF DOLLARS) September 27, December 31, 2019 Total long-term debt, principal amount (a) $ 48,473 $ 34,820 Net fair value adjustments related to hedging and purchase accounting 1,621 1,305 Net unamortized discounts, premiums and debt issuance costs (314) (176) Other long-term debt 5 5 Total long-term debt, carried at historical proceeds, as adjusted $ 49,785 $ 35,955 Current portion of long-term debt, carried at historical proceeds, as adjusted (not included above) $ 2,149 $ 1,462 (a) As of September 27, 2020, $11.4 billion of proceeds from the Upjohn debt transactions are invested in money market funds and included in Restricted short-term investments in the condensed consolidated balance sheet. |
Schedule of Derivative Instruments | The following summarizes the fair value of the derivative financial instruments and the notional amounts: (MILLIONS OF DOLLARS) September 27, 2020 December 31, 2019 Fair Value Fair Value Notional Asset Liability Notional Asset Liability Derivatives designated as hedging instruments: Foreign exchange contracts (a) $ 24,545 $ 346 $ 1,187 $ 25,193 $ 591 $ 662 Interest rate contracts 1,995 147 — 6,645 318 — 493 1,187 909 662 Derivatives not designated as hedging instruments: Foreign exchange contracts $ 16,084 75 85 $ 19,623 82 55 Total $ 568 $ 1,272 $ 992 $ 718 (a) The notional amount of outstanding foreign currency forward-exchange contracts hedging our intercompany forecasted inventory sales was $5.1 billion as of September 27, 2020 and $5.9 billion as of December 31, 2019. |
Schedule of Derivative Assets | The following summarizes the fair value of the derivative financial instruments and the notional amounts: (MILLIONS OF DOLLARS) September 27, 2020 December 31, 2019 Fair Value Fair Value Notional Asset Liability Notional Asset Liability Derivatives designated as hedging instruments: Foreign exchange contracts (a) $ 24,545 $ 346 $ 1,187 $ 25,193 $ 591 $ 662 Interest rate contracts 1,995 147 — 6,645 318 — 493 1,187 909 662 Derivatives not designated as hedging instruments: Foreign exchange contracts $ 16,084 75 85 $ 19,623 82 55 Total $ 568 $ 1,272 $ 992 $ 718 (a) The notional amount of outstanding foreign currency forward-exchange contracts hedging our intercompany forecasted inventory sales was $5.1 billion as of September 27, 2020 and $5.9 billion as of December 31, 2019. |
Schedule of Derivative Liabilities | The following summarizes the fair value of the derivative financial instruments and the notional amounts: (MILLIONS OF DOLLARS) September 27, 2020 December 31, 2019 Fair Value Fair Value Notional Asset Liability Notional Asset Liability Derivatives designated as hedging instruments: Foreign exchange contracts (a) $ 24,545 $ 346 $ 1,187 $ 25,193 $ 591 $ 662 Interest rate contracts 1,995 147 — 6,645 318 — 493 1,187 909 662 Derivatives not designated as hedging instruments: Foreign exchange contracts $ 16,084 75 85 $ 19,623 82 55 Total $ 568 $ 1,272 $ 992 $ 718 (a) The notional amount of outstanding foreign currency forward-exchange contracts hedging our intercompany forecasted inventory sales was $5.1 billion as of September 27, 2020 and $5.9 billion as of December 31, 2019. |
Information about Gains/(Losses) Incurred to Hedge or Offset Operational Foreign Exchange or Interest Rate Risk | The following summarizes information about the gains/(losses) incurred to hedge or offset operational foreign exchange or interest rate risk: Amount of (a) Amount of Gains/(Losses) (a), (b) Amount of Gains/(Losses) (a) (MILLIONS OF DOLLARS) Sept. 27, 2020 Sept. 29, 2019 Sept. 27, 2020 Sept. 29, 2019 Sept. 27, 2020 Sept. 29, 2019 Three Months Ended Derivative Financial Instruments in Cash Flow Hedge Relationships: Foreign exchange contracts (c) $ — $ — $ (379) $ 131 $ (149) $ 7 Amount excluded from effectiveness testing recognized in earnings based on an amortization approach (d) — — 7 21 7 22 Derivative Financial Instruments in Fair Value Hedge Relationships: Interest rate contracts (9) 378 — — — — Hedged item 9 (378) — — — — Derivative Financial Instruments in Net Investment Hedge Relationships: Foreign exchange contracts — — (257) 112 — — The portion on foreign exchange contracts excluded from the assessment of hedge effectiveness (d) — — 9 43 38 45 Non-Derivative Financial Instruments in Net Investment Hedge Relationships: Foreign currency short-term borrowings (e) — — — 45 — — Foreign currency long-term debt (e) — — (72) 79 — — Derivative Financial Instruments Not Designated as Hedges: Foreign exchange contracts 255 (77) — — — — All other net (d) — — — (1) — — $ 255 $ (77) $ (692) $ 429 $ (104) $ 74 Amount of Gains/(Losses) Recognized in OID (a) Amount of Gains/(Losses) Recognized in OCI (a), (b) Amount of Gains/(Losses) Reclassified from OCI into OID and COS (a) (MILLIONS OF DOLLARS) Sept. 27, 2020 Sept. 29, 2019 Sept. 27, 2020 Sept. 29, 2019 Sept. 27, 2020 Sept. 29, 2019 Nine Months Ended Derivative Financial Instruments in Cash Flow Hedge Relationships: Foreign exchange contracts (c) $ — $ — $ (721) $ 137 $ (23) $ 265 Amount excluded from effectiveness testing recognized in earnings based on an amortization approach (d) — — 49 105 48 108 Derivative Financial Instruments in Fair Value Hedge Relationships: Interest rate contracts 383 1,191 — — — — Hedged item (383) (1,191) — — — — Derivative Financial Instruments in Net Investment Hedge Relationships: Foreign exchange contracts — — (17) 87 — — The portion of foreign exchange contracts excluded from the assessment of hedge effectiveness (d) — — 185 136 122 99 Non-Derivative Financial Instruments in Net Investment Hedge Relationships: Foreign currency short-term borrowings (e) — — 8 65 — — Foreign currency long-term debt (e) — — (69) 89 — — Derivative Financial Instruments Not Designated as Hedges: Foreign exchange contracts 205 (201) — — — — All other net (d) — — 12 — (1) — $ 205 $ (201) $ (553) $ 617 $ 147 $ 472 (a) OID = Other (income)/deductions—net, included in Other (income)/deductions—net in the condensed consolidated statements of income . COS = Cost of Sales, included in Cost of sales in the condensed consolidated statements of income. OCI = Other comprehensive income/(loss), included in the condensed consolidated statements of comprehensive income . (b) For derivative financial instruments in net investment hedge relationships and for foreign currency debt designated as hedging instruments, the gains and losses are included in Other comprehensive income/(loss)––Foreign currency translation adjustments, net. (c) The amounts reclassified from OCI into COS were: • a net gain of $34 million in the third quarter of 2020; • a net gain of $184 million in the first nine months of 2020; • a net gain of $66 million in the third quarter of 2019; and • a net gain of $169 million in the first nine months of 2019. The remaining amounts were reclassified from OCI into OID. Based on quarter-end foreign exchange rates that are subject to change, we expect to reclassify a pre-tax loss of $192 million within the next 12 months into income . The maximum length of time over which we are hedging future foreign exchange cash flow relates to our $1.8 billion U.K. pound debt maturing in 2043. (d) The amounts reclassified from OCI were reclassified into OID. (e) Long-term debt includes foreign currency borrowings with carrying values of $2.0 billion as of September 27, 2020, which are used as hedging instruments in net investment hedge relationships. |
Schedule of Total Amount of Each Income and Expense Line in which Results of Fair Value Hedges are Recorded | The following summarizes the amounts recorded in our condensed consolidated balance sheet related to cumulative basis adjustments for fair value hedges: September 27, 2020 December 31, 2019 Cumulative Amount of Fair Value Hedging Adjustment Increase/(Decrease) to Cumulative Amount of Fair Value Hedging Adjustment Increase/(Decrease) to (MILLIONS OF DOLLARS) Carrying Amount of Hedged Assets/Liabilities (a) Active Hedging Relationships Discontinued Hedging Relationships Carrying Amount of Hedged Assets/Liabilities (a) Active Hedging Relationships Discontinued Hedging Relationships Short-term investments $ 45 $ — $ — $ — $ — $ — Long-term investments — — — 45 — — Long-term debt 2,019 131 1,165 7,092 266 690 (a) Carrying amounts exclude the cumulative amount of fair value hedging adjustments. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 27, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Components of Inventories, Current | The following summarizes the components of Inventories : (MILLIONS OF DOLLARS) September 27, December 31, 2019 Finished goods $ 3,521 $ 2,750 Work-in-process 5,014 4,743 Raw materials and supplies 760 790 Inventories (a) $ 9,295 $ 8,283 Noncurrent inventories not included above (b) $ 948 $ 714 (a) The change from December 31, 2019 reflects increases for certain products, including inventory build for new product launches, market demand, supply recovery and network strategy, and an increase due to foreign exchange. (b) Included in Other noncurrent assets . There are no recoverability issues associated with these amounts. |
Schedule of Components of Inventories, Noncurrent | The following summarizes the components of Inventories : (MILLIONS OF DOLLARS) September 27, December 31, 2019 Finished goods $ 3,521 $ 2,750 Work-in-process 5,014 4,743 Raw materials and supplies 760 790 Inventories (a) $ 9,295 $ 8,283 Noncurrent inventories not included above (b) $ 948 $ 714 (a) The change from December 31, 2019 reflects increases for certain products, including inventory build for new product launches, market demand, supply recovery and network strategy, and an increase due to foreign exchange. (b) Included in Other noncurrent assets . There are no recoverability issues associated with these amounts. |
Identifiable Intangible Asset_2
Identifiable Intangible Assets and Goodwill (Tables) | 9 Months Ended |
Sep. 27, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The following summarizes the components of Identifiable intangible assets : September 27, 2020 December 31, 2019 (MILLIONS OF DOLLARS) Gross Accumulated Identifiable Gross Accumulated Identifiable Finite-lived intangible assets Developed technology rights (a) $ 90,052 $ (66,212) $ 23,840 $ 88,730 $ (63,106) $ 25,625 Brands 922 (766) 156 922 (741) 181 Licensing agreements and other (b) 2,385 (1,238) 1,146 1,772 (1,191) 582 93,358 (68,216) 25,142 91,425 (65,037) 26,387 Indefinite-lived intangible assets Brands 1,991 1,991 1,991 1,991 IPR&D (c) 3,221 3,221 5,919 5,919 Licensing agreements and other (b) 573 573 1,073 1,073 5,785 5,785 8,983 8,983 Identifiable intangible assets (d) $ 99,143 $ (68,216) $ 30,927 $ 100,408 $ (65,037) $ 35,370 (a) The change in the gross carrying amount primarily reflect the transfer of $600 million from IPR&D to Developed technology rights to reflect the approval of Braftovi in combination with Erbitux ® (cetuximab), for the treatment of BRAF V600E -mutant metastatic colorectal cancer after prior therapy and a $200 million measurement period adjustment related to the acquisition of Array (see Note 2A ) . (b) The changes in the gross carrying amounts primarily reflect the transfer of $600 million from Indefinite-lived Licensing agreements and other to finite-lived Licensing agreements and other to reflect the approval in the U.S. of several products subject to out-licensing arrangements acquired from Array, as well as measurement period adjustments related to the acquisition of Array. (c) The changes in the gross carrying amount primarily reflect a $1.2 billion measurement period adjustment related to the acquisition of Array, a $900 million impairment of IPR&D (see Note 4 ), and the transfer of $600 million from IPR&D to Developed technology rights to reflect the approval of Braftovi in combination with Erbitux ® (cetuximab), for the treatment of BRAF V600E -mutant metastatic colorectal cancer after prior therapy. (d) The decrease is primarily due to amortization, the $900 million impairment of IPR&D, and measurement period adjustments related to the acquisition of Array. |
Schedule of Indefinite Lived Intangible Assets | The following summarizes the components of Identifiable intangible assets : September 27, 2020 December 31, 2019 (MILLIONS OF DOLLARS) Gross Accumulated Identifiable Gross Accumulated Identifiable Finite-lived intangible assets Developed technology rights (a) $ 90,052 $ (66,212) $ 23,840 $ 88,730 $ (63,106) $ 25,625 Brands 922 (766) 156 922 (741) 181 Licensing agreements and other (b) 2,385 (1,238) 1,146 1,772 (1,191) 582 93,358 (68,216) 25,142 91,425 (65,037) 26,387 Indefinite-lived intangible assets Brands 1,991 1,991 1,991 1,991 IPR&D (c) 3,221 3,221 5,919 5,919 Licensing agreements and other (b) 573 573 1,073 1,073 5,785 5,785 8,983 8,983 Identifiable intangible assets (d) $ 99,143 $ (68,216) $ 30,927 $ 100,408 $ (65,037) $ 35,370 (a) The change in the gross carrying amount primarily reflect the transfer of $600 million from IPR&D to Developed technology rights to reflect the approval of Braftovi in combination with Erbitux ® (cetuximab), for the treatment of BRAF V600E -mutant metastatic colorectal cancer after prior therapy and a $200 million measurement period adjustment related to the acquisition of Array (see Note 2A ) . (b) The changes in the gross carrying amounts primarily reflect the transfer of $600 million from Indefinite-lived Licensing agreements and other to finite-lived Licensing agreements and other to reflect the approval in the U.S. of several products subject to out-licensing arrangements acquired from Array, as well as measurement period adjustments related to the acquisition of Array. (c) The changes in the gross carrying amount primarily reflect a $1.2 billion measurement period adjustment related to the acquisition of Array, a $900 million impairment of IPR&D (see Note 4 ), and the transfer of $600 million from IPR&D to Developed technology rights to reflect the approval of Braftovi in combination with Erbitux ® (cetuximab), for the treatment of BRAF V600E -mutant metastatic colorectal cancer after prior therapy. (d) The decrease is primarily due to amortization, the $900 million impairment of IPR&D, and measurement period adjustments related to the acquisition of Array. |
Identifiable Intangible Assets as a Percentage of Total Identifiable Intangible Assets Less Accumulated Amortization, By Segment | Our identifiable intangible assets are associated with the following, as a percentage of total identifiable intangible assets, less accumulated amortization: September 27, 2020 Biopharma Upjohn WRDM Developed technology rights 99 % 1 % — Brands, finite-lived 100 % — — Brands, indefinite-lived 42 % 58 % — IPR&D 92 % — 8 % Licensing agreements and other, finite-lived 99 % 1 % 1 % Licensing agreements and other, indefinite-lived 100 % — — |
Schedule of Goodwill | The following summarizes the components and changes in the carrying amount of Goodwill : (MILLIONS OF DOLLARS) Biopharma Upjohn Total Balance, December 31, 2019 $ 48,202 $ 10,451 $ 58,653 Additions (a) 727 — 727 Other (b) 420 102 522 Balance, September 27, 2020 $ 49,349 $ 10,553 $ 59,902 (a) Additions primarily represents the impact of measurement period adjustments related to our Array acquisition (see Note 2A ). (b) Represents the impact of foreign exchange. |
Pension and Postretirement Be_2
Pension and Postretirement Benefit Plans (Tables) | 9 Months Ended |
Sep. 27, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Benefit Costs | The following summarizes the components of net periodic benefit cost/(credit): Three Months Ended Pension Plans U.S. U.S. Supplemental International Postretirement (MILLIONS OF DOLLARS) Sept. 27, 2020 Sept. 29, 2019 Sept. 27, 2020 Sept. 29, 2019 Sept. 27, 2020 Sept. 29, 2019 Sept. 27, 2020 Sept. 29, 2019 Service cost $ — $ — $ — $ — $ 36 $ 31 $ 10 $ 9 Interest cost 131 157 9 12 40 53 13 19 Expected return on plan assets (251) (222) — — (75) (79) (9) (8) Amortization of: Actuarial losses 32 37 4 2 31 20 — — Prior service credits (1) (1) — — (1) (1) (43) (43) Curtailments — — — — — — — (47) Settlements 171 1 3 22 1 12 — (10) Special termination benefits — 3 — 5 — — — 1 Net periodic benefit cost/(credit) reported in income $ 82 $ (25) $ 15 $ 41 $ 32 $ 37 $ (30) $ (78) Nine Months Ended Pension Plans U.S. U.S. Supplemental International Postretirement (MILLIONS OF DOLLARS) Sept. 27, 2020 Sept. 29, 2019 Sept. 27, 2020 Sept. 29, 2019 Sept. 27, 2020 Sept. 29, 2019 Sept. 27, 2020 Sept. 29, 2019 Service cost $ — $ — $ — $ — $ 108 $ 94 $ 29 $ 28 Interest cost 393 472 26 37 122 162 38 57 Expected return on plan assets (754) (667) — — (228) (239) (27) (25) Amortization of: Actuarial losses 96 110 11 7 93 61 — 2 Prior service credits (2) (2) — (1) (2) (3) (129) (132) Curtailments — — — — — — — (47) Settlements 191 3 47 21 2 12 — (10) Special termination benefits — 4 2 14 — — — 2 Net periodic benefit cost/(credit) reported in income $ (77) $ (80) $ 85 $ 78 $ 96 $ 88 $ (89) $ (124) |
Schedule of Employer Contributions to Pension and Postretirement Plans | The following summarizes the amounts we contributed, and the amounts we expect to contribute during 2020, to our pension and postretirement plans from our general assets for the periods indicated: Pension Plans (MILLIONS OF DOLLARS) U.S. Qualified U.S. Supplemental (Non-Qualified) International Postretirement Plans Contributions from our general assets for the nine months ended September 27, 2020 $ 1,253 $ 169 $ 151 $ 84 Expected contributions from our general assets during 2020 (a) 1,253 188 186 122 (a) Contributions expected to be made for 2020 are inclusive of amounts contributed during the nine months ended September 27, 2020. The U.S. supplemental (non-qualified) pension plan, international pension plan and the postretirement plan contributions from our general assets include direct employer benefit payments. For the U.S. qualified plans, we made a $1.25 billion voluntary contribution in September 2020. |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 27, 2020 | |
Equity [Abstract] | |
Schedule of Dividends | The following presents quarterly cash dividends: 2020 2019 Date Payment Dividend Per Date Payment Dividend Per Share December 13, 2019 March 6, 2020 $ 0.38 December 14, 2018 March 1, 2019 $ 0.36 April 23, 2020 June 5, 2020 0.38 April 25, 2019 June 7, 2019 0.36 June 25, 2020 September 1, 2020 0.38 June 27, 2019 September 3, 2019 0.36 September 24, 2020 December 1, 2020 0.38 September 24, 2019 December 2, 2019 0.36 |
Earnings Per Common Share Att_2
Earnings Per Common Share Attributable to Pfizer Inc. Common Shareholders (Tables) | 9 Months Ended |
Sep. 27, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earning Per Share | The following presents the detailed calculation of EPS : Three Months Ended Nine Months Ended (IN MILLIONS) September 27, September 29, September 27, September 29, EPS Numerator––Basic Income from continuing operations $ 2,202 $ 7,680 $ 9,046 $ 16,625 Less: Net income attributable to noncontrolling interests 8 4 25 19 Income from continuing operations attributable to Pfizer Inc. 2,194 7,676 9,022 16,606 Less: Preferred stock dividends––net of tax — — — 1 Income from continuing operations attributable to Pfizer Inc. common shareholders 2,194 7,676 9,021 16,605 Discontinued operations––net of tax — 4 — 4 Net income attributable to Pfizer Inc. common shareholders $ 2,194 $ 7,680 $ 9,021 $ 16,609 EPS Numerator––Diluted Income from continuing operations attributable to Pfizer Inc. common shareholders and assumed conversions $ 2,194 $ 7,676 $ 9,022 $ 16,606 Discontinued operations––net of tax, attributable to Pfizer Inc. common shareholders and assumed conversions — 4 — 4 Net income attributable to Pfizer Inc. common shareholders and assumed conversions $ 2,194 $ 7,680 $ 9,022 $ 16,609 EPS Denominator Weighted-average number of common shares outstanding––Basic 5,557 5,545 5,552 5,581 Common-share equivalents: stock options, stock issuable under employee compensation plans and convertible preferred stock 76 104 70 110 Weighted-average number of common shares outstanding––Diluted 5,633 5,649 5,622 5,690 Anti-dilutive common stock equivalents (a) 7 3 5 2 (a) These common stock equivalents were outstanding for the periods presented, but were not included in the computation of diluted EPS for those periods because their inclusion would have had an anti-dilutive effect. |
Segment, Geographic and Other_2
Segment, Geographic and Other Revenue Information (Tables) | 9 Months Ended |
Sep. 27, 2020 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated | The following summarizes selected income statement information by reportable segment: Three Months Ended Revenues Earnings (a) (MILLIONS OF DOLLARS) September 27, September 29, September 27, September 29, Reportable Segments: Biopharma $ 10,215 $ 9,952 $ 6,807 $ 6,506 Upjohn 1,916 2,351 1,009 1,384 Total reportable segments 12,131 12,303 7,816 7,890 Other business activities — 377 (1,939) (1,469) Reconciling Items: Corporate and other unallocated — — (1,192) (1,439) Purchase accounting adjustments — — (823) (1,141) Acquisition-related costs — — (11) (300) Certain significant items (b) — — (1,675) 7,187 $ 12,131 $ 12,680 $ 2,176 $ 10,727 Nine Months Ended Revenues Earnings (a) (MILLIONS OF DOLLARS) September 27, September 29, September 27, September 29, Reportable Segments: Biopharma $ 30,017 $ 28,429 $ 20,186 $ 18,461 Upjohn 5,944 8,535 3,367 5,635 Total reportable segments 35,961 36,964 23,554 24,096 Other business activities — 2,098 (4,958) (3,776) Reconciling Items: Corporate and other unallocated — — (3,437) (4,116) Purchase accounting adjustments — — (2,545) (3,357) Acquisition-related costs — — (46) (152) Certain significant items (b) — — (2,554) 6,495 $ 35,961 $ 39,062 $ 10,014 $ 19,190 (a) Income from continuing operations before provision/(benefit) for taxes on income . Biopharma’s earnings include dividend income of $44 million in the third quarter of 2020 and $43 million in the third quarter of 2019, and $196 million in the first nine months of 2020 and $184 million in the first nine months of 2019 from our investment in ViiV. See Note 4. (b) Certain significant items are substantive and/or unusual, and in some cases recurring, items (as noted above) that, either as a result of their nature or size, would not be expected to occur as part of our normal business on a regular basis. In the third quarter and first nine months of 2020, includes, among other items, intangible asset impairment charges of $900 million, recorded in Other (income)/deductions—net, related to IPR&D assets acquired in connection with our Array acquisition. In the third quarter and first nine months of 2019, includes, among other items, a pre-tax gain of $8.1 billion recorded in (Gain) on completion of Consumer Healthcare JV transaction associated with the completion of the GSK Consumer Healthcare joint venture transaction ( See Note 2 ). Certain significant items are discussed further in Note 3 and Note 4 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The following summarizes selected income statement information by reportable segment: Three Months Ended Revenues Earnings (a) (MILLIONS OF DOLLARS) September 27, September 29, September 27, September 29, Reportable Segments: Biopharma $ 10,215 $ 9,952 $ 6,807 $ 6,506 Upjohn 1,916 2,351 1,009 1,384 Total reportable segments 12,131 12,303 7,816 7,890 Other business activities — 377 (1,939) (1,469) Reconciling Items: Corporate and other unallocated — — (1,192) (1,439) Purchase accounting adjustments — — (823) (1,141) Acquisition-related costs — — (11) (300) Certain significant items (b) — — (1,675) 7,187 $ 12,131 $ 12,680 $ 2,176 $ 10,727 Nine Months Ended Revenues Earnings (a) (MILLIONS OF DOLLARS) September 27, September 29, September 27, September 29, Reportable Segments: Biopharma $ 30,017 $ 28,429 $ 20,186 $ 18,461 Upjohn 5,944 8,535 3,367 5,635 Total reportable segments 35,961 36,964 23,554 24,096 Other business activities — 2,098 (4,958) (3,776) Reconciling Items: Corporate and other unallocated — — (3,437) (4,116) Purchase accounting adjustments — — (2,545) (3,357) Acquisition-related costs — — (46) (152) Certain significant items (b) — — (2,554) 6,495 $ 35,961 $ 39,062 $ 10,014 $ 19,190 (a) Income from continuing operations before provision/(benefit) for taxes on income . Biopharma’s earnings include dividend income of $44 million in the third quarter of 2020 and $43 million in the third quarter of 2019, and $196 million in the first nine months of 2020 and $184 million in the first nine months of 2019 from our investment in ViiV. See Note 4. (b) Certain significant items are substantive and/or unusual, and in some cases recurring, items (as noted above) that, either as a result of their nature or size, would not be expected to occur as part of our normal business on a regular basis. In the third quarter and first nine months of 2020, includes, among other items, intangible asset impairment charges of $900 million, recorded in Other (income)/deductions—net, related to IPR&D assets acquired in connection with our Array acquisition. In the third quarter and first nine months of 2019, includes, among other items, a pre-tax gain of $8.1 billion recorded in (Gain) on completion of Consumer Healthcare JV transaction associated with the completion of the GSK Consumer Healthcare joint venture transaction ( See Note 2 ). Certain significant items are discussed further in Note 3 and Note 4 |
Schedule of Revenues by Geographic Region | The following summarizes revenues by geographic area: Three Months Ended Nine Months Ended (MILLIONS OF DOLLARS) September 27, September 29, % September 27, September 29, % United States $ 5,716 $ 5,850 (2) $ 16,770 $ 18,360 (9) Developed Europe (a) 2,087 2,135 (2) 6,095 6,450 (5) Developed Rest of World 1,634 1,585 3 4,642 4,758 (2) Emerging Markets 2,694 3,110 (13) 8,453 9,493 (11) Revenues $ 12,131 $ 12,680 (4) $ 35,961 $ 39,062 (8) |
Schedule of Significant Product Revenues | The following provides detailed revenue information for several of our major products: (MILLIONS OF DOLLARS) Three Months Ended Nine Months Ended PRODUCT PRIMARY INDICATION OR CLASS Sept. 27, 2020 Sept. 29, 2019 Sept. 27, 2020 Sept. 29, 2019 TOTAL REVENUES $ 12,131 $ 12,680 $ 35,961 $ 39,062 PFIZER BIOPHARMACEUTICALS GROUP (BIOPHARMA) $ 10,215 $ 9,952 $ 30,017 $ 28,429 Internal Medicine (a) $ 2,085 $ 2,128 $ 6,695 $ 6,508 Eliquis alliance revenues and direct sales Nonvalvular atrial fibrillation, deep vein thrombosis, pulmonary embolism 1,114 1,025 3,686 3,121 Chantix/Champix An aid to smoking cessation treatment in adults 18 years of age or older 223 276 728 825 Premarin family Symptoms of menopause 168 182 471 542 BMP2 Development of bone and cartilage 70 66 197 212 Toviaz Overactive bladder 59 61 183 186 All other Internal Medicine Various 451 517 1,429 1,621 Oncology $ 2,761 $ 2,350 $ 7,843 $ 6,547 Ibrance Metastatic breast cancer 1,357 1,283 3,955 3,677 Xtandi alliance revenues mCRPC, nmCRPC, mCSPC 266 225 741 594 Sutent Advanced and/or metastatic RCC, adjuvant RCC, refractory GIST (after disease progression on, or intolerance to, imatinib mesylate) and advanced pancreatic neuroendocrine tumor 202 224 616 704 Inlyta Advanced RCC 195 139 559 316 Xalkori ALK-positive and ROS1-positive advanced NSCLC 122 130 409 385 Bosulif Philadelphia chromosome–positive chronic myelogenous leukemia 111 90 324 267 Retacrit (b) Anemia 102 64 278 147 Lorbrena ALK-positive metastatic NSCLC 55 32 142 77 Braftovi In combination with Mektovi for metastatic melanoma for patients who test positive for a BRAF genetic mutation and, in combination with Erbitux ® (cetuximab), for the treatment of BRAF V600E -mutant metastatic colorectal cancer after prior therapy 42 18 116 18 Mektovi In combination with Braftovi for metastatic melanoma for patients who test positive for a BRAF genetic mutation 34 19 103 19 (MILLIONS OF DOLLARS) Three Months Ended Nine Months Ended PRODUCT PRIMARY INDICATION OR CLASS Sept. 27, 2020 Sept. 29, 2019 Sept. 27, 2020 Sept. 29, 2019 Ruxience (b) Non-hodgkin’s lymphoma, chronic lymphocytic leukemia, granulomatosis with polyangiitis (Wegener’s Granulomatosis) and microscopic polyangiitis 59 — 78 — All other Oncology Various 217 125 522 342 Hospital (a), (c) $ 1,728 $ 1,840 $ 5,535 $ 5,505 Sulperazon Bacterial infections 143 163 432 505 Medrol Anti-inflammatory glucocorticoid 87 109 295 348 Zithromax Bacterial infections 25 77 218 254 Precedex Sedation agent in surgery or intensive care 55 36 211 116 Vfend Fungal infections 52 87 201 265 Panzyga Primary humoral immunodeficiency 62 46 199 107 Fragmin Treatment/prevention of venous thromboembolism 60 62 178 185 Zyvox Bacterial infections 51 61 176 195 Pfizer CentreOne (d) Various 242 176 618 556 All other Anti-infectives Various 384 434 1,195 1,260 All other Hospital (c) Various 568 589 1,813 1,713 Vaccines $ 1,717 $ 1,808 $ 4,574 $ 4,795 Prevnar 13/Prevenar 13 Pneumococcal disease 1,534 1,603 4,100 4,268 Nimenrix Meningococcal disease 50 52 180 159 FSME/IMMUN-TicoVac Tick-borne encephalitis disease 77 64 170 197 All other Vaccines Various 56 89 124 171 Inflammation & Immunology (I&I) $ 1,173 $ 1,226 $ 3,299 $ 3,482 Xeljanz RA, PsA, UC, active polyarticular course juvenile idiopathic arthritis 654 599 1,741 1,634 Enbrel (Outside the U.S. and Canada) RA, juvenile idiopathic arthritis, PsA, plaque psoriasis, pediatric plaque psoriasis, ankylosing spondylitis and nonradiographic axial spondyloarthritis 321 415 1,005 1,285 Inflectra/Remsima (b) Crohn’s disease, pediatric Crohn’s disease, UC, pediatric UC, RA in combination with methotrexate, ankylosing spondylitis, PsA and plaque psoriasis 162 155 471 446 All other I&I Various 35 58 83 116 Rare Disease $ 752 $ 601 $ 2,071 $ 1,592 Vyndaqel/Vyndamax ATTR-cardiomyopathy and polyneuropathy 351 156 859 259 BeneFIX Hemophilia B 107 125 337 372 Genotropin Replacement of human growth hormone 107 124 316 357 Refacto AF/Xyntha Hemophilia A 92 104 272 319 Somavert Acromegaly 67 64 198 192 All other Rare Disease Various 27 28 89 94 UPJOHN (a) $ 1,916 $ 2,351 $ 5,944 $ 8,535 Lipitor Reduction of LDL cholesterol 356 476 1,191 1,506 Lyrica Epilepsy, post-herpetic neuralgia and diabetic peripheral neuropathy, fibromyalgia, neuropathic pain due to spinal cord injury 352 527 1,058 2,888 Norvasc Hypertension 183 219 601 735 Celebrex Arthritis pain and inflammation, acute pain 133 179 428 526 Viagra Erectile dysfunction 121 120 342 379 Effexor Depression and certain anxiety disorders 80 80 242 242 Zoloft Depression and certain anxiety disorders 76 74 233 217 EpiPen (a) Epinephrine injection used in treatment of life-threatening allergic reactions 58 74 194 197 Xalatan/Xalacom Glaucoma and ocular hypertension 62 68 188 201 Xanax Anxiety disorders 55 50 149 147 All other Upjohn Various 442 485 1,317 1,496 CONSUMER HEALTHCARE BUSINESS (e) $ — $ 377 $ — $ 2,098 Total Alliance revenues $ 1,250 $ 1,141 $ 4,036 $ 3,418 Total Biosimilars (b) $ 424 $ 236 $ 1,001 $ 632 Total Sterile Injectable Pharmaceuticals (f) $ 1,195 $ 1,248 $ 3,839 $ 3,703 (a) Beginning in 2020, Upjohn began managing our Meridian subsidiary, the manufacturer of EpiPen and other auto-injector products, and a pre-existing strategic collaboration between Pfizer and Mylan for generic drugs in Japan (Mylan-Japan). As a result, revenues associated with our Meridian subsidiary, except for product revenues for EpiPen sold in Canada, and Mylan-Japan, are reported in our Upjohn business beginning in the first quarter of 2020. We have reclassified revenues associated with our Meridian subsidiary and Mylan-Japan from the Hospital and Internal Medicine categories to the Upjohn business to conform 2019 product revenues to the current presentation. (b) Biosimilars are highly similar versions of approved and authorized biological medicines and primarily include revenues from Inflectra/Remsima, Retacrit and Ruxience. (c) Hospital is a business unit that commercializes our global portfolio of sterile injectable and anti-infective medicines. Hospital also includes Pfizer CentreOne (d) . All other Hospital primarily includes revenues from legacy Sterile Injectables Pharmaceuticals (SIP) products (that are not anti-infective products) and, to a much lesser extent, solid oral dose products (that are not anti-infective products). SIP anti-infective products that are not individually listed above are recorded in “All other Anti-infectives”. (d) Pfizer CentreOne includes revenues from our contract manufacturing and active pharmaceutical ingredient sales operation, including sterile injectables contract manufacturing, and revenues related to our manufacturing and supply agreements. (e) On July 31, 2019, Pfizer’s Consumer Healthcare business, an over-the-counter medicines business, was combined with GSK’s consumer healthcare business to form a new consumer healthcare joint venture. See Note 2B . (f) Total Sterile Injectable Pharmaceuticals represents the total of all branded and generic injectable products in the Hospital business, including anti-infective sterile injectable pharmaceuticals. |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies (Details) | 7 Months Ended | ||
Jul. 31, 2019Operating_Segment | Jan. 01, 2020Accounting_standard | Jan. 01, 2019Accounting_standard | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Number of business segments | Operating_Segment | 3 | ||
Number of accounting standards adopted | Accounting_standard | 4 | 4 |
Basis of Presentation and Sig_5
Basis of Presentation and Significant Accounting Policies - Accrued Rebates and Other Accruals (Details) - USD ($) $ in Millions | Sep. 27, 2020 | Dec. 31, 2019 |
Schedule Of Accrued Liabilities [Line Items] | ||
Accrued rebates and other accruals | $ 5,591 | $ 5,689 |
Trade accounts receivable, less allowance for doubtful accounts [Member] | ||
Schedule Of Accrued Liabilities [Line Items] | ||
Accrued rebates and other accruals | 1,126 | 1,257 |
Other current liabilities [Member] | ||
Schedule Of Accrued Liabilities [Line Items] | ||
Accrued rebates | 3,270 | 3,285 |
Other accruals | 573 | 581 |
Other noncurrent liabilities [Member] | ||
Schedule Of Accrued Liabilities [Line Items] | ||
Accrued rebates and other accruals | $ 622 | $ 565 |
Acquisition, Equity-Method In_3
Acquisition, Equity-Method Investment and Licensing Arrangements - Array (Details) - USD ($) $ / shares in Units, $ in Millions | Jul. 30, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | Dec. 31, 2019 |
Business Acquisition [Line Items] | ||||
Acquisition of business, net of cash acquired | $ 0 | $ 10,861 | ||
Goodwill | 59,902 | $ 58,653 | ||
Array [Member] | ||||
Business Acquisition [Line Items] | ||||
Business acquisition, per share in cash (in dollars per share) | $ 48 | |||
Payments for acquisition, cash portion | $ 11,200 | |||
Acquisition of business, net of cash acquired | 10,900 | |||
Identifiable intangible assets | 6,300 | |||
Goodwill | 6,100 | |||
Deferred tax liabilities | 1,100 | |||
Assumed long-term debt | 451 | |||
Reduction in intangible assets due to measurement period adjustments | 900 | |||
Array [Member] | IPR&D [Member] | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets | 2,800 | |||
Array [Member] | Licensing Agreements [Member] | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets | 1,500 | |||
Array [Member] | Technology in development [Member] | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets | 1,200 | |||
Array [Member] | Developed technology [Member] | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets | $ 360 | |||
Acquired intangible assets, average useful life | 10 years | |||
Array [Member] | Developed technology rights [Member] | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets | $ 2,000 | |||
Acquired intangible assets, average useful life | 16 years | |||
Reduction in intangible assets due to measurement period adjustments | $ (200) |
Acquisition, Equity-Method In_4
Acquisition, Equity-Method Investment and Licensing Arrangements - Equity Method Investment Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | Dec. 31, 2019 | Jul. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | ||||||
Gain on completion of Consumer Healthcare JV transaction | $ 0 | $ 8,087 | $ 6 | $ 8,087 | ||
Equity-method investments | 15,949 | 15,949 | $ 17,133 | |||
GSK Consumer Healthcare [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment, ownership percentage | 32.00% | 32.00% | 32.00% | |||
Gain on completion of Consumer Healthcare JV transaction | $ 8,100 | |||||
Gain on completion of Consumer Healthcare JV transaction, after-tax | 5,400 | |||||
Equity-method investments | 15,800 | 15,800 | 17,000 | |||
Decrease due to foreign currency translation | 617 | |||||
Dividend received | 825 | |||||
Equity method investment earnings | 166 | 306 | ||||
Fair value of equity method investment | 15,700 | $ 15,700 | $ 15,700 | |||
Underlying equity in net assets | 11,000 | 11,200 | ||||
Difference between carrying amount and underlying equity | $ 4,800 | $ 4,500 | ||||
GSK [Member] | GSK Consumer Healthcare [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment, ownership percentage | 68.00% | |||||
OID [Member] | GSK Consumer Healthcare [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Excess basis amortization and write-off | $ 62 | $ 110 | ||||
Consumer Healthcare [Member] | Held-for-sale [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Pre-tax income attributable to disposal group | $ 100 | $ 654 | ||||
Minimum [Member] | GSK Consumer Healthcare [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Excess basis amortization period | 8 years | |||||
Maximum [Member] | GSK Consumer Healthcare [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Excess basis amortization period | 20 years |
Acquisition, Equity-Method In_5
Acquisition, Equity-Method Investment and Licensing Arrangements - Schedule of Equity-Method Investment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 27, 2020 | Jun. 30, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Jun. 30, 2020 | Sep. 29, 2019 | Jun. 28, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | ||||||||||
Current assets | $ 47,739 | $ 47,739 | $ 32,803 | |||||||
Total assets | 178,983 | 178,983 | 167,489 | |||||||
Current liabilities | 34,154 | 34,154 | 37,304 | |||||||
Total liabilities | 113,487 | 113,487 | 104,042 | |||||||
Equity attributable to shareholders | 65,259 | 65,259 | 63,143 | |||||||
Equity attributable to noncontrolling interests | 236 | 236 | 303 | |||||||
Total equity | 65,495 | $ 65,396 | 65,495 | $ 65,396 | $ 64,564 | $ 63,447 | $ 59,924 | $ 63,758 | ||
Income from continuing operations | 2,202 | 7,680 | 9,046 | 16,625 | ||||||
Net income | 2,202 | 7,684 | 9,046 | 16,628 | ||||||
Income attributable to shareholders | $ 2,194 | $ 7,680 | $ 9,022 | $ 16,609 | ||||||
GSK Consumer Healthcare [Member] | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Current assets | $ 7,136 | $ 7,136 | ||||||||
Noncurrent assets | 37,108 | 37,108 | ||||||||
Total assets | 44,244 | 44,244 | ||||||||
Current liabilities | 4,992 | 4,992 | ||||||||
Noncurrent liabilities | 5,195 | 5,195 | ||||||||
Total liabilities | 10,187 | 10,187 | ||||||||
Equity attributable to shareholders | 33,919 | 33,919 | ||||||||
Equity attributable to noncontrolling interests | 138 | 138 | ||||||||
Total equity | 34,057 | 34,057 | ||||||||
Net sales | 2,927 | 9,618 | ||||||||
Cost of sales | (1,061) | (4,266) | ||||||||
Gross profit | 1,866 | 5,352 | ||||||||
Income from continuing operations | 524 | 995 | ||||||||
Net income | 524 | 995 | ||||||||
Income attributable to shareholders | $ 518 | $ 959 |
Acquisition, Equity-Method In_6
Acquisition, Equity-Method Investment and Licensing Arrangements - Valneva SE (Details) - Licensing Agreements [Member] - Valneva SE [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Jun. 28, 2020 | Sep. 27, 2020 | Apr. 30, 2020 | |
Business Acquisition [Line Items] | |||
Maximum potential cash payments | $ 308 | ||
Potential development milestones | 35 | ||
Potential early commercialization milestones | $ 143 | ||
Valneva's development cost ownership percentage | 30.00% | ||
Research and Development Expense [Member] | |||
Business Acquisition [Line Items] | |||
Upfront payment for licensing arrangement | $ 130 |
Acquisition, Equity-Method In_7
Acquisition, Equity-Method Investment and Licensing Arrangements - BioNTech (Details) - Licensing Agreements [Member] - BionTech [Member] - USD ($) $ in Millions | Apr. 09, 2020 | Jul. 31, 2020 | Jun. 28, 2020 |
Business Acquisition [Line Items] | |||
Value of shares purchased | $ 50 | $ 113 | |
Potential future milestone payments | $ 563 | ||
Maximum potential cash payments | $ 748 | ||
Research and development arrangement, percentage of costs to be reimbursed | 50.00% | ||
Research and Development Expense [Member] | |||
Business Acquisition [Line Items] | |||
Upfront payment for licensing arrangement | $ 72 |
Restructuring Charges and Oth_3
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs incurred | $ 452 | ||
Focused Company Plan [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected restructuring cost | $ 1,200 | $ 1,200 | |
Restructuring costs incurred | 621 | 600 | |
2017-2019 Initiatives and Organizing for Growth [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs incurred | 300 | ||
Manufacturing Cost Reduction [Member] | Focused Company Plan [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected restructuring cost | $ 500 | $ 500 | |
Percentage of expected costs to be non-cash | 20.00% | ||
Business Integration Costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs incurred | (194) | ||
Business Integration Costs [Member] | Array [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs incurred | 272 | ||
Business Integration Costs [Member] | Hospira [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs incurred | $ 74 |
Restructuring Charges and Oth_4
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | ||
Restructuring charges/(credits): | |||||
Employee terminations | $ (15) | $ 82 | $ 357 | $ (86) | |
Asset impairments | 22 | 3 | 45 | 3 | |
Exit costs/(credits) | (11) | (1) | (9) | 33 | |
Restructuring charges/(credits) | [1] | (4) | 83 | 392 | (50) |
Transaction costs | [2] | 0 | 65 | 14 | 65 |
Integration costs and other | [3] | 7 | 217 | 29 | 281 |
Restructuring charges and certain acquisition-related costs | 4 | 365 | 435 | 295 | |
Additional depreciation––asset restructuring recorded in our condensed consolidated statements of income | [4] | 4 | 6 | 10 | 29 |
Implementation costs recorded in our condensed consolidated statements of income as follows: | |||||
Implementation costs | [5] | 48 | 40 | 148 | 109 |
Total costs associated with acquisitions and cost-reduction/productivity initiatives | 56 | 420 | 621 | 452 | |
Other (income)/deductions––net [Member] | |||||
Restructuring charges/(credits): | |||||
Net periodic benefit costs recorded in Other (income)/deductions––net | 0 | 9 | 29 | 19 | |
Cost of sales [Member] | |||||
Restructuring charges/(credits): | |||||
Additional depreciation––asset restructuring recorded in our condensed consolidated statements of income | [4] | 4 | 6 | 14 | 21 |
Implementation costs recorded in our condensed consolidated statements of income as follows: | |||||
Implementation costs | [5] | 11 | 14 | 32 | 45 |
Selling, informational and administrative expenses [Member] | |||||
Restructuring charges/(credits): | |||||
Additional depreciation––asset restructuring recorded in our condensed consolidated statements of income | [4] | 0 | 0 | 0 | 2 |
Implementation costs recorded in our condensed consolidated statements of income as follows: | |||||
Implementation costs | [5] | 36 | 23 | 114 | 48 |
Research and development expenses [Member] | |||||
Restructuring charges/(credits): | |||||
Additional depreciation––asset restructuring recorded in our condensed consolidated statements of income | [4] | 0 | 0 | (3) | 6 |
Implementation costs recorded in our condensed consolidated statements of income as follows: | |||||
Implementation costs | [5] | $ 1 | $ 3 | $ 2 | $ 16 |
[1] | In the first nine months of 2020, restructuring charges mainly represent employee termination costs associated with our Transforming to a More Focused Company cost-reduction program. In the third quarter of 2019, restructuring charges mainly represented employee termination costs associated with cost-reduction and productivity initiatives as well as our acquisition of Array. In the first nine months of 2019, restructuring credits mostly represented the reversal of certain accruals related to our acquisition of Wyeth upon the effective favorable settlement of an IRS audit for multiple tax years, partially offset by employee termination costs associated with cost-reduction and productivity initiatives, as well as our acquisition of Array. See Notes to Consolidated Financial Statements–– Note 5D. Tax Matters: Tax Contingencies in our 2019 Financial Report. The restructuring activities for 2020 are associated with the following: • For the third quarter of 2020, Biopharma ($6 million charge); Upjohn ($3 million credit); and Other ($7 million credit). • For the first nine months of 2020, Biopharma ($3 million credit); Upjohn ($10 million charge); and Other ($386 million charge). The restructuring activities for 2019 are associated with the following: • For the third quarter of 2019, Biopharma ($10 million charge); Upjohn ($6 million credit); and Other ($79 million charge). • For the first nine months of 2019, Biopharma ($38 million credit); Upjohn ($27 million credit); and Other ($15 million charge). Restructuring costs identified as Other are for restructuring activities associated with corporate enabling functions, WRDM, GPD and other manufacturing and commercial operations, as applicable. For the first nine months of 2020, restructuring costs identified as Other primarily relate to corporate enabling functions. | ||||
[2] | Transaction costs represent external costs for banking, legal, accounting and other similar services. | ||||
[3] | Integration costs and other represent external, incremental costs directly related to integrating acquired businesses, such as expenditures for consulting and the integration of systems and processes, and certain other qualifying costs. In the third quarter and first nine months of 2020, integration costs and other were mostly related to our acquisition of Array. In the third quarter and first nine months of 2019, integration costs and other primarily included $157 million in payments to Array employees for the fair value of previously unvested stock options that was recognized as post-closing compensation expense. See Notes to Consolidated Financial Statements–– Note 2A. Acquisitions, Divestitures, Equity-Method Investments and Assets and Liabilities Held for Sale, Licensing Arrangements and Research and Development and Collaborative Arrangements: Acquisitions in our 2019 Financial Report. | ||||
[4] | Additional depreciation––asset restructuring represents the impact of changes in the estimated useful lives of assets involved in restructuring actions. | ||||
[5] | Implementation costs represent external, incremental costs directly related to implementing our non-acquisition-related cost-reduction/productivity initiatives. |
Restructuring Charges and Oth_5
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives - Footnotes (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | ||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charge (credit) | [1] | $ (4) | $ 83 | $ 392 | $ (50) |
Array [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Post-closing compensation expense for payments to Array employees for fair value of previously unvested stock options | 157 | 157 | |||
Other [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charge (credit) | (7) | 79 | 386 | 15 | |
Biopharma [Member] | Operating Segments [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charge (credit) | 6 | 10 | (3) | (38) | |
Upjohn [Member] | Operating Segments [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charge (credit) | $ (3) | $ (6) | $ 10 | $ (27) | |
[1] | In the first nine months of 2020, restructuring charges mainly represent employee termination costs associated with our Transforming to a More Focused Company cost-reduction program. In the third quarter of 2019, restructuring charges mainly represented employee termination costs associated with cost-reduction and productivity initiatives as well as our acquisition of Array. In the first nine months of 2019, restructuring credits mostly represented the reversal of certain accruals related to our acquisition of Wyeth upon the effective favorable settlement of an IRS audit for multiple tax years, partially offset by employee termination costs associated with cost-reduction and productivity initiatives, as well as our acquisition of Array. See Notes to Consolidated Financial Statements–– Note 5D. Tax Matters: Tax Contingencies in our 2019 Financial Report. The restructuring activities for 2020 are associated with the following: • For the third quarter of 2020, Biopharma ($6 million charge); Upjohn ($3 million credit); and Other ($7 million credit). • For the first nine months of 2020, Biopharma ($3 million credit); Upjohn ($10 million charge); and Other ($386 million charge). The restructuring activities for 2019 are associated with the following: • For the third quarter of 2019, Biopharma ($10 million charge); Upjohn ($6 million credit); and Other ($79 million charge). • For the first nine months of 2019, Biopharma ($38 million credit); Upjohn ($27 million credit); and Other ($15 million charge). Restructuring costs identified as Other are for restructuring activities associated with corporate enabling functions, WRDM, GPD and other manufacturing and commercial operations, as applicable. For the first nine months of 2020, restructuring costs identified as Other primarily relate to corporate enabling functions. |
Restructuring Charges and Oth_6
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives - Restructuring Accruals (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | ||
Restructuring Reserve [Roll Forward] | |||||
Balance, beginning | [1] | $ 933 | |||
Provision | [2] | $ (4) | $ 83 | 392 | $ (50) |
Utilization and other | [3] | (479) | |||
Balance, ending | [4] | 847 | 847 | ||
Employee Termination Costs [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Balance, beginning | [1] | 887 | |||
Provision | 357 | ||||
Utilization and other | [3] | (411) | |||
Balance, ending | [4] | 832 | 832 | ||
Asset Impairment Charges [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Balance, beginning | [1] | 0 | |||
Provision | 45 | ||||
Utilization and other | [3] | (45) | |||
Balance, ending | [4] | 0 | 0 | ||
Exit Costs [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Balance, beginning | [1] | 46 | |||
Provision | (9) | ||||
Utilization and other | [3] | (23) | |||
Balance, ending | [4] | $ 14 | $ 14 | ||
[1] | Included in Other current liabilities ($714 million) and Other noncurrent liabilities ($219 million). | ||||
[2] | In the first nine months of 2020, restructuring charges mainly represent employee termination costs associated with our Transforming to a More Focused Company cost-reduction program. In the third quarter of 2019, restructuring charges mainly represented employee termination costs associated with cost-reduction and productivity initiatives as well as our acquisition of Array. In the first nine months of 2019, restructuring credits mostly represented the reversal of certain accruals related to our acquisition of Wyeth upon the effective favorable settlement of an IRS audit for multiple tax years, partially offset by employee termination costs associated with cost-reduction and productivity initiatives, as well as our acquisition of Array. See Notes to Consolidated Financial Statements–– Note 5D. Tax Matters: Tax Contingencies in our 2019 Financial Report. The restructuring activities for 2020 are associated with the following: • For the third quarter of 2020, Biopharma ($6 million charge); Upjohn ($3 million credit); and Other ($7 million credit). • For the first nine months of 2020, Biopharma ($3 million credit); Upjohn ($10 million charge); and Other ($386 million charge). The restructuring activities for 2019 are associated with the following: • For the third quarter of 2019, Biopharma ($10 million charge); Upjohn ($6 million credit); and Other ($79 million charge). • For the first nine months of 2019, Biopharma ($38 million credit); Upjohn ($27 million credit); and Other ($15 million charge). Restructuring costs identified as Other are for restructuring activities associated with corporate enabling functions, WRDM, GPD and other manufacturing and commercial operations, as applicable. For the first nine months of 2020, restructuring costs identified as Other primarily relate to corporate enabling functions. | ||||
[3] | Includes adjustments for foreign currency translation. | ||||
[4] | Included in Other current liabilities ($607 million) and Other noncurrent liabilities ($240 million). |
Restructuring Charges and Oth_7
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives - Restructuring Accruals - Footnotes (Detail) - USD ($) $ in Millions | Sep. 27, 2020 | Dec. 31, 2019 | ||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring reserve | $ 847 | [1] | $ 933 | [2] |
Other Current Liabilities [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring reserve | 607 | 714 | ||
Other Noncurrent Liabilities [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring reserve | $ 240 | $ 219 | ||
[1] | Included in Other current liabilities ($607 million) and Other noncurrent liabilities ($240 million). | |||
[2] | Included in Other current liabilities ($714 million) and Other noncurrent liabilities ($219 million). |
Other (Income)_Deductions - N_3
Other (Income)/Deductions - Net (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | ||
Other Income and Expenses [Abstract] | |||||
Interest income | [1] | $ (17) | $ (60) | $ (70) | $ (185) |
Interest expense | [1] | 416 | 409 | 1,178 | 1,158 |
Net interest expense | 399 | 348 | 1,108 | 973 | |
Royalty-related income | (214) | (155) | (525) | (475) | |
Net gains on asset disposals | (2) | (32) | 0 | (33) | |
Net (gains)/losses recognized during the period on equity securities | [2],[3] | 70 | (6) | (408) | (153) |
Income from collaborations, out-licensing arrangements and sales of compound/product rights | [4] | (30) | (20) | (245) | (124) |
Net periodic benefit costs/(credits) other than service costs | [5] | 54 | (19) | (122) | (110) |
Certain legal matters, net | 38 | 64 | 64 | 84 | |
Certain asset impairments | [6] | 900 | 28 | 900 | 188 |
Business and legal entity alignment costs | [7] | 0 | 87 | 0 | 343 |
Net losses on early retirement of debt | 0 | 0 | 0 | 138 | |
GSK Consumer Healthcare JV equity method (income)/loss | [8] | (103) | 0 | (196) | 0 |
Other, net | [9] | 38 | 24 | (69) | (294) |
Other (income)/deductions––net | $ 1,148 | $ 319 | $ 507 | $ 537 | |
[1] | Interest income decreased in the third quarter and first nine months of 2020, primarily driven by a lower investment balance and lower short-term rates. Interest expense remained relatively flat in the third quarter and first nine months of 2020, mainly as a result of the issuance of new debt related to the planned combination of Mylan and Upjohn, offset by lower rates on commercial paper. See Note 7D . | ||||
[2] | The losses in the third quarter of 2020 include, among other things, unrealized losses of $131 million related to our investment in Allogene. The gains in the first nine months of 2020 include, among other things, unrealized gains of $243 million related to our investment in Allogene and unrealized gains of $154 million related to our investment in BioNTech. The gains in the first nine months of 2019 included, among other things, unrealized gains of $115 million related to our investments in Cortexyme, Inc. and SpringWorks Therapeutics, Inc. For additional information on investments, see Note 7B . | ||||
[3] | Reported in Other (income)/deductions –– net. See Note 4 . | ||||
[4] | Includes income from upfront and milestone payments from our collaboration partners and income from out-licensing arrangements and sales of compound/product rights. The first nine months of 2020 mainly includes, among other things, (i) an upfront payment to us of $75 million from our sale of our CK1 assets to Biogen, Inc., (ii) $40 million of milestone income from Puma Biotechnology, Inc. related to Neratinib regulatory approvals in the EU and (iii) $30 million of milestone income from Lilly related to the first commercial sale in the U.S. of LOXO-292 for the treatment of RET fusion-positive NSCLC. The first nine months of 2019 primarily included, among other things, $70 million in milestone income from Mylan Pharmaceuticals Inc. related to the FDA’s approval and launch of Wixela Inhub ® , a generic of Advair Diskus ® . | ||||
[5] | See Note 10 . | ||||
[6] | The third quarter and first nine months of 2020 include intangible asset impairment charges of $900 million related to Biopharma IPR&D assets for unapproved indications of certain cancer medicines, acquired in connection with our Array acquisition, and reflect, among other things, updated commercial forecasts. The first nine months of 2019 included intangible asset impairment charges of: (i) $90 million related to WRDM IPR&D, for a pre-clinical stage asset from our acquisition of Bamboo for gene therapies for the potential treatment of patients with certain rare diseases, which was the result of a determination to not use certain Bamboo IPR&D acquired in future rare disease development, (ii) $40 million related to an Upjohn finite-lived developed technology right, acquired in connection with our acquisition of King, for government defense products and reflected, among other things, updated commercial forecasts including manufacturing cost assumptions, and (iii) $10 million related to a Biopharma finite-lived developed technology right, acquired in connection with our acquisition of Anacor, for the treatment for toenail fungus marketed in the U.S. market only, and reflected, among other things, updated commercial forecasts. The first nine months of 2019 also included other asset impairments of $48 million . | ||||
[7] | In the third quarter and first nine months of 2019, represents incremental costs associated with the design, planning and implementation of our new organizational structure, effective in the beginning of 2019, and primarily includes consulting, legal, tax and advisory services. | ||||
[8] | The income for the third quarter and first nine months of 2020 represents our pro-rata share of earnings from the GSK Consumer Healthcare joint venture, partially offset by equity method basis difference write-offs and amortization. See Note 2B . | ||||
[9] | The third quarter of 2020 includes, among other things, charges of $144 million related to the remeasurement of Euro debt issued by Upjohn Finance B.V. in the second quarter of 2020 (see Note 7D ) and dividend income of $44 million from our investment in ViiV. The first nine months of 2020 includes, among other things, dividend income of $196 million from our investment in ViiV and charges of $110 million, reflecting the change in the fair value of contingent consideration. The third quarter of 2019 included, among other things, dividend income of $43 million from our investment in ViiV and charges of $121 million for external incremental costs, such as transaction costs and costs to separate our Consumer Healthcare business into a separate legal entity, associated with the formation of the GSK Consumer Healthcare joint venture. The first nine months of 2019 included, among other things, (i) dividend income of $184 million from our investment in ViiV, (ii) charges of $146 million for external incremental costs, such as transaction costs and costs to separate our Consumer Healthcare business into a separate legal entity, associated with the formation of the GSK Consumer Healthcare joint venture, and (iii) $50 million of income from insurance recoveries related to Hurricane Maria. |
Other (Income)_Deductions - N_4
Other (Income)/Deductions - Net - Footnotes (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | ||
Loss Contingencies [Line Items] | |||||
Unrealized gain (loss) on equity securities | [1] | $ (68) | $ 3 | $ 391 | $ 140 |
Intangible asset impairment charge | 900 | ||||
Other asset impairments | 48 | ||||
External incremental costs | 121 | 146 | |||
Insurance recoveries | 50 | ||||
Subsidiaries [Member] | Upjohn Finance B.V. [Member] | |||||
Loss Contingencies [Line Items] | |||||
Charges related to remeasurement of Euro debt | 144 | ||||
Allogene [Member] | |||||
Loss Contingencies [Line Items] | |||||
Unrealized gain (loss) on equity securities | (131) | 243 | |||
BioNTech [Member] | |||||
Loss Contingencies [Line Items] | |||||
Unrealized gain (loss) on equity securities | 154 | ||||
Cortexyme, Inc. and SpringWorks Therapeutics, Inc [Member] | |||||
Loss Contingencies [Line Items] | |||||
Unrealized gain (loss) on equity securities | 115 | ||||
ViiV [Member] | |||||
Loss Contingencies [Line Items] | |||||
Dividend income | 44 | $ 43 | 196 | 184 | |
Puma Technologies [Member] | Collaborative Arrangement [Member] | |||||
Loss Contingencies [Line Items] | |||||
Milestone payment received | 40 | ||||
Eli Lilly & Company [Member] | Collaborative Arrangement [Member] | |||||
Loss Contingencies [Line Items] | |||||
Milestone payment received | 30 | ||||
Mylan [Member] | Collaborative Arrangement [Member] | |||||
Loss Contingencies [Line Items] | |||||
Milestone payment received | 70 | ||||
Disposed of by Sale [Member] | CK1 assets sold to Biogen, Inc [Member] | |||||
Loss Contingencies [Line Items] | |||||
Consideration transferred | 75 | 75 | |||
IPR&D [Member] | |||||
Loss Contingencies [Line Items] | |||||
Intangible asset impairment charge | [2] | 900 | |||
Upjohn [Member] | Operating Segments [Member] | Developed technology rights [Member] | King [Member] | |||||
Loss Contingencies [Line Items] | |||||
Intangible asset impairment charge | 40 | ||||
Biopharma [Member] | Operating Segments [Member] | Developed technology rights [Member] | Anacor [Member] | |||||
Loss Contingencies [Line Items] | |||||
Intangible asset impairment charge | 10 | ||||
Biopharma [Member] | Operating Segments [Member] | IPR&D [Member] | |||||
Loss Contingencies [Line Items] | |||||
Intangible asset impairment charge | $ 900 | 900 | |||
Gene Therapies [Member] | WRDM [Member] | IPR&D [Member] | |||||
Loss Contingencies [Line Items] | |||||
Intangible asset impairment charge | $ 90 | ||||
ViiV [Member] | |||||
Loss Contingencies [Line Items] | |||||
Change in fair value of contingent consideration | $ 110 | ||||
[1] | Included in net unrealized gains are observable price changes on equity securities without readily determinable fair values. Since January 1, 2018, there were cumulative impairments and downward adjustments of $82 million and upward adjustments of $63 million. Impairments, downward and upward adjustments were not significant in the third quarters and the first nine months of 2020 and 2019. | ||||
[2] | Reflects intangible assets written down to fair value in the first nine months of 2020. Fair value was determined using the income approach, specifically the multi-period excess earnings method, also known as the discounted cash flow method. We started with a forecast of all the expected net cash flows associated with the asset and then applied an asset-specific discount rate to arrive at a net present value amount. Some of the more significant estimates and assumptions inherent in this approach include: the amount and timing of the projected net cash flows, which includes the expected impact of competitive, legal and/or regulatory forces on the product; the discount rate, which seeks to reflect the various risks inherent in the projected cash flows; and the tax rate, which seeks to incorporate the geographic diversity of the projected cash flows. |
Other (Income)_Deductions - N_5
Other (Income)/Deductions - Net - Intangible Assets (Details) $ in Millions | 9 Months Ended | |
Sep. 27, 2020USD ($) | ||
Finite-Lived Intangible Assets [Line Items] | ||
Impairment | $ 900 | |
IPR&D [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets-IPR&D | 1,100 | [1],[2] |
Impairment | 900 | [1] |
IPR&D [Member] | Level 1 [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets-IPR&D | 0 | [1],[2] |
IPR&D [Member] | Level 2 [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets-IPR&D | 0 | [1],[2] |
IPR&D [Member] | Level 3 [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets-IPR&D | $ 1,100 | [1],[2] |
[1] | Reflects intangible assets written down to fair value in the first nine months of 2020. Fair value was determined using the income approach, specifically the multi-period excess earnings method, also known as the discounted cash flow method. We started with a forecast of all the expected net cash flows associated with the asset and then applied an asset-specific discount rate to arrive at a net present value amount. Some of the more significant estimates and assumptions inherent in this approach include: the amount and timing of the projected net cash flows, which includes the expected impact of competitive, legal and/or regulatory forces on the product; the discount rate, which seeks to reflect the various risks inherent in the projected cash flows; and the tax rate, which seeks to incorporate the geographic diversity of the projected cash flows. | |
[2] | The fair value amount is presented as of the date of impairment, as these assets are not measured at fair value on a recurring basis. |
Tax Matters - Narrative (Detail
Tax Matters - Narrative (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate for income from continuing operations | (1.20%) | 28.40% | 9.70% | 13.40% |
Tax expense associated with gain related to completion of joint venture transaction | $ 2,700 | |||
Intangible asset impairment charge | $ 900 | |||
Tax benefit due to settlement | $ 1,400 | |||
Repatriation tax liability | $ 15,000 | $ 15,000 |
Tax Matters (Detail)
Tax Matters (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | ||
Income Tax Disclosure [Abstract] | |||||
Foreign currency translation adjustments, net | [1] | $ 47 | $ 86 | $ (144) | $ 96 |
Unrealized holding gains/(losses) on derivative financial instruments, net | (43) | 31 | (126) | 37 | |
Reclassification adjustments for (gains)/losses included in net income | 7 | (3) | (13) | (62) | |
Derivatives qualifying as hedges, tax, total | (37) | 28 | (139) | (24) | |
Unrealized holding gains/(losses) on available-for-sale securities, net | 30 | 2 | 29 | 6 | |
Reclassification adjustments for (gains)/losses included in net income | (11) | (1) | (3) | 4 | |
Available-for-sale securities, tax, total | 19 | 1 | 26 | 10 | |
Benefit plans: actuarial gains/(losses), net | (288) | (41) | (308) | (42) | |
Reclassification adjustments related to amortization | 15 | 23 | 46 | 41 | |
Reclassification adjustments related to settlements, net | 40 | 9 | 52 | 10 | |
Other | (48) | (1) | (28) | 2 | |
Defined benefit plans, actuarial gain (loss), tax, total | (281) | (10) | (238) | 12 | |
Reclassification adjustments related to amortization of prior service costs and other, net | (11) | (11) | (32) | (33) | |
Reclassification adjustments related to curtailments of prior service costs and other, net | 0 | (11) | 0 | (11) | |
Other | (1) | 1 | 1 | 1 | |
Pension and other postretirement benefit plans, net prior service cost (credit), tax | (11) | (21) | (31) | (43) | |
Tax provision/(benefit) on other comprehensive income/(loss) | $ (262) | $ 84 | $ (527) | $ 50 | |
[1] | Taxes are not provided for foreign currency translation adjustments relating to investments in international subsidiaries that will be held indefinitely. |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss, Excluding Noncontrolling Interests (Detail) $ in Millions | 9 Months Ended | |
Sep. 27, 2020USD ($) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, beginning | $ 63,143 | |
Balance, ending | 65,259 | |
Foreign currency translation loss attributable to noncontrolling interest | 9 | |
Increase in pension plan liability | 1,200 | |
Accumulated Other Comprehensive Income (Loss) [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, beginning | (11,640) | |
Other comprehensive income/(loss) | (1,036) | [1] |
Balance, ending | (12,676) | |
Foreign Currency Translation Adjustment [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, beginning | (5,952) | |
Other comprehensive income/(loss) | 249 | [1] |
Balance, ending | (5,703) | |
Derivative Financial Instruments [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, beginning | 20 | |
Other comprehensive income/(loss) | (546) | [1] |
Balance, ending | (526) | |
Available-For-Sale Securities [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, beginning | (35) | |
Other comprehensive income/(loss) | 179 | [1] |
Balance, ending | 144 | |
Actuarial Gains/(Losses) [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, beginning | (6,257) | |
Other comprehensive income/(loss) | (817) | [1] |
Balance, ending | (7,074) | |
Prior Service (Costs)/Credits and Other [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, beginning | 584 | |
Other comprehensive income/(loss) | (102) | [1] |
Balance, ending | $ 482 | |
[1] | Amounts do not include foreign currency translation adjustments attributable to noncontrolling interests of $9 million loss for the first nine months of 2020. Foreign currency translation adjustments primarily include gains from the strengthening of certain major currencies against the U.S. dollar, partially offset by net after-tax losses related to foreign currency translation adjustments and the impact of our net investment hedging program, both attributable to our equity method investment in GSK Consumer Healthcare joint venture (see Note 2B ). The actuarial gains/(losses) activity mainly reflects interim U.S. Pfizer Consolidated Pension remeasurements, which resulted in an increase of $1.2 billion in the pension plan liability, primarily due to a reduction in the discount rate since December 31, 2019. |
Financial Instruments - Financi
Financial Instruments - Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Millions | Sep. 27, 2020 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities with readily determinable fair value | [1] | $ 12,273 | $ 705 |
Total other noncurrent assets | 4,355 | 4,450 | |
Total assets | 178,983 | 167,489 | |
Total liabilities | 1,272 | 718 | |
Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets | 23,567 | 11,176 | |
Total liabilities | 1,272 | 718 | |
Short-term investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 7,859 | 6,687 | |
Total short-term investments | 20,132 | 7,392 | |
Other Current Assets [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current derivative assets | 337 | 465 | |
Other Current Assets [Member] | Recurring [Member] | Interest rate contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current derivative assets | 16 | 53 | |
Other Current Assets [Member] | Recurring [Member] | Foreign exchange contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current derivative assets | 321 | 413 | |
Long-term Investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities with readily determinable fair value | [2] | 2,092 | 1,902 |
Available-for-sale debt securities | 149 | 315 | |
Total long-term investments | 2,241 | 2,216 | |
Other Noncurrent Assets [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Noncurrent derivative assets | 231 | 526 | |
Insurance contracts | [3] | 626 | 575 |
Total other noncurrent assets | 857 | 1,102 | |
Other Noncurrent Assets [Member] | Recurring [Member] | Interest rate contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Noncurrent derivative assets | 131 | 266 | |
Other Noncurrent Assets [Member] | Recurring [Member] | Foreign exchange contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Noncurrent derivative assets | 100 | 261 | |
Other Current Liabilities [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current derivative liabilities | 464 | 114 | |
Other Current Liabilities [Member] | Recurring [Member] | Foreign exchange contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current derivative liabilities | 464 | 114 | |
Other Noncurrent Liabilities [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Noncurrent derivative liabilities | 808 | 604 | |
Other Noncurrent Liabilities [Member] | Recurring [Member] | Foreign exchange contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Noncurrent derivative liabilities | 808 | 604 | |
Level 1 [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets | 2,063 | 1,863 | |
Total liabilities | 0 | 0 | |
Level 1 [Member] | Short-term investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Total short-term investments | 0 | 0 | |
Level 1 [Member] | Other Current Assets [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current derivative assets | 0 | 0 | |
Level 1 [Member] | Other Current Assets [Member] | Recurring [Member] | Interest rate contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current derivative assets | 0 | 0 | |
Level 1 [Member] | Other Current Assets [Member] | Recurring [Member] | Foreign exchange contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current derivative assets | 0 | 0 | |
Level 1 [Member] | Long-term Investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities with readily determinable fair value | [2] | 2,063 | 1,863 |
Available-for-sale debt securities | 0 | 0 | |
Total long-term investments | 2,063 | 1,863 | |
Level 1 [Member] | Other Noncurrent Assets [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Noncurrent derivative assets | 0 | 0 | |
Insurance contracts | [3] | 0 | 0 |
Total other noncurrent assets | 0 | 0 | |
Level 1 [Member] | Other Noncurrent Assets [Member] | Recurring [Member] | Interest rate contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Noncurrent derivative assets | 0 | 0 | |
Level 1 [Member] | Other Noncurrent Assets [Member] | Recurring [Member] | Foreign exchange contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Noncurrent derivative assets | 0 | 0 | |
Level 1 [Member] | Other Current Liabilities [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current derivative liabilities | 0 | 0 | |
Level 1 [Member] | Other Current Liabilities [Member] | Recurring [Member] | Foreign exchange contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current derivative liabilities | 0 | 0 | |
Level 1 [Member] | Other Noncurrent Liabilities [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Noncurrent derivative liabilities | 0 | 0 | |
Level 1 [Member] | Other Noncurrent Liabilities [Member] | Recurring [Member] | Foreign exchange contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Noncurrent derivative liabilities | 0 | 0 | |
Level 2 [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets | 21,504 | 9,313 | |
Total liabilities | 1,272 | 718 | |
Level 2 [Member] | Short-term investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 7,859 | 6,687 | |
Total short-term investments | 20,132 | 7,392 | |
Level 2 [Member] | Other Current Assets [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current derivative assets | 337 | 465 | |
Level 2 [Member] | Other Current Assets [Member] | Recurring [Member] | Interest rate contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current derivative assets | 16 | 53 | |
Level 2 [Member] | Other Current Assets [Member] | Recurring [Member] | Foreign exchange contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current derivative assets | 321 | 413 | |
Level 2 [Member] | Long-term Investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities with readily determinable fair value | [2] | 28 | 39 |
Available-for-sale debt securities | 149 | 315 | |
Total long-term investments | 178 | 354 | |
Level 2 [Member] | Other Noncurrent Assets [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Noncurrent derivative assets | 231 | 526 | |
Insurance contracts | [3] | 626 | 575 |
Total other noncurrent assets | 857 | 1,102 | |
Level 2 [Member] | Other Noncurrent Assets [Member] | Recurring [Member] | Interest rate contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Noncurrent derivative assets | 131 | 266 | |
Level 2 [Member] | Other Noncurrent Assets [Member] | Recurring [Member] | Foreign exchange contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Noncurrent derivative assets | 100 | 261 | |
Level 2 [Member] | Other Current Liabilities [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current derivative liabilities | 464 | 114 | |
Level 2 [Member] | Other Current Liabilities [Member] | Recurring [Member] | Foreign exchange contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current derivative liabilities | 464 | 114 | |
Level 2 [Member] | Other Noncurrent Liabilities [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Noncurrent derivative liabilities | 808 | 604 | |
Level 2 [Member] | Other Noncurrent Liabilities [Member] | Recurring [Member] | Foreign exchange contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Noncurrent derivative liabilities | 808 | 604 | |
Money market funds [Member] | Short-term investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities with readily determinable fair value | [4] | 12,273 | 705 |
Money market funds [Member] | Level 1 [Member] | Short-term investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities with readily determinable fair value | [4] | 0 | 0 |
Money market funds [Member] | Level 2 [Member] | Short-term investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities with readily determinable fair value | [4] | 12,273 | 705 |
Government and agency - non U.S. [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 5,906 | 4,863 | |
Government and agency - non U.S. [Member] | Short-term investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 5,906 | 4,863 | |
Government and agency - non U.S. [Member] | Level 1 [Member] | Short-term investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Government and agency - non U.S. [Member] | Level 2 [Member] | Short-term investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 5,906 | 4,863 | |
Government and agency - U.S. [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 725 | 1,114 | |
Government and agency - U.S. [Member] | Short-term investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 582 | 811 | |
Government and agency - U.S. [Member] | Long-term Investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 142 | 303 | |
Government and agency - U.S. [Member] | Level 1 [Member] | Short-term investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Government and agency - U.S. [Member] | Level 1 [Member] | Long-term Investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Government and agency - U.S. [Member] | Level 2 [Member] | Short-term investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 582 | 811 | |
Government and agency - U.S. [Member] | Level 2 [Member] | Long-term Investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 142 | 303 | |
Corporate and other [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [5] | 1,378 | 1,025 |
Corporate and other [Member] | Short-term investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 1,371 | 1,013 | |
Corporate and other [Member] | Long-term Investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 7 | 11 | |
Corporate and other [Member] | Level 1 [Member] | Short-term investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Corporate and other [Member] | Level 1 [Member] | Long-term Investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Corporate and other [Member] | Level 2 [Member] | Short-term investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 1,371 | 1,013 | |
Corporate and other [Member] | Level 2 [Member] | Long-term Investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | $ 7 | $ 11 | |
[1] | As of September 27, 2020 and December 31, 2019, included money market funds primarily invested in U.S. Treasury and government debt. As of September 27, 2020, $11.4 billion of proceeds from the Upjohn debt transactions (see Note 7D ) are invested in money market funds and included in Restricted short-term investments in the condensed consolidated balance sheet. | ||
[2] | As of September 27, 2020, long-term equity securities of $181 million and as of December 31, 2019, long-term equity securities of $176 million were held in restricted trusts for employee benefit plans. | ||
[3] | Includes life insurance policies held in restricted trusts attributable to the funding of various U.S. non-qualified employee benefit plans. The underlying invested assets in these insurance contracts are marketable securities, which are carried at fair value, with changes in fair value recognized in Other (income)/deductions—net in the condensed consolidated statements of income (see Note 4 ) . | ||
[4] | As of September 27, 2020, $11.4 billion of proceeds from the Upjohn debt transactions (see Note 7D ) are invested in money market funds and included in Restricted short-term investments in the condensed consolidated balance sheet. | ||
[5] | Primarily issued by a diverse group of corporations. |
Financial Instruments - Finan_2
Financial Instruments - Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis - Footnotes (Detail) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 27, 2020 | Sep. 29, 2019 | Dec. 31, 2019 | |
Footnotes to selected financial assets and liabilities: | |||
Proceeds from issuance of long-term debt | $ 16,700 | $ 4,942 | |
Recurring [Member] | |||
Footnotes to selected financial assets and liabilities: | |||
Long-term equity securities held in trust | 181 | $ 176 | |
Subsidiaries [Member] | Upjohn Inc [Member] | |||
Footnotes to selected financial assets and liabilities: | |||
Proceeds from issuance of long-term debt | $ 11,400 |
Financial Instruments - Finan_3
Financial Instruments - Financial Liabilities Not Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Sep. 27, 2020 | Dec. 31, 2019 | |
Carrying Value [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term debt, excluding the current portion | [1] | $ 49,785 | $ 35,955 |
Estimated Fair Value [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term debt, excluding the current portion | [1] | 59,073 | 40,842 |
Estimated Fair Value [Member] | Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term debt, excluding the current portion | [1] | $ 59,073 | $ 40,842 |
[1] | As of September 27, 2020, $11.4 billion of proceeds from the Upjohn debt transactions (see Note 7D ) are invested in money market funds and included in Restricted short-term investments in the condensed consolidated balance sheet. |
Financial Instruments - Finan_4
Financial Instruments - Financial Liabilities Not Measured at Fair Value on a Recurring Basis - Footnotes (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 27, 2020 | Sep. 29, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Proceeds from issuance of long-term debt | $ 16,700 | $ 4,942 |
Subsidiaries [Member] | Upjohn Inc [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Proceeds from issuance of long-term debt | $ 11,400 |
Financial Instruments - Total S
Financial Instruments - Total Short-Term and Long-Term Investments and Equity Method Investments (Details) - USD ($) $ in Millions | Sep. 27, 2020 | Dec. 31, 2019 | |
Short-term investments | |||
Equity securities with readily determinable fair value | [1] | $ 12,273 | $ 705 |
Available-for-sale debt securities | 7,859 | 6,687 | |
Held-to-maturity debt securities | 193 | 1,133 | |
Total Short-term investments | 20,325 | 8,525 | |
Long-term investments | |||
Equity securities with readily determinable fair values | 2,092 | 1,902 | |
Available-for-sale debt securities | 149 | 315 | |
Held-to-maturity debt securities | 37 | 42 | |
Private equity securities at cost | 780 | 756 | |
Total Long-term investments | 3,059 | 3,014 | |
Equity-method investments | 15,949 | 17,133 | |
Total long-term investments and equity-method investments | 19,008 | 20,147 | |
Held-to-maturity cash equivalents | $ 130 | $ 163 | |
[1] | As of September 27, 2020 and December 31, 2019, included money market funds primarily invested in U.S. Treasury and government debt. As of September 27, 2020, $11.4 billion of proceeds from the Upjohn debt transactions (see Note 7D ) are invested in money market funds and included in Restricted short-term investments in the condensed consolidated balance sheet. |
Financial Instruments - Total_2
Financial Instruments - Total Short-Term and Long-Term Investments and Equity Method Investments - Footnotes (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 27, 2020 | Sep. 29, 2019 | |
Debt Securities, Available-for-sale [Line Items] | ||
Proceeds from issuance of long-term debt | $ 16,700 | $ 4,942 |
Subsidiaries [Member] | Upjohn Inc [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Proceeds from issuance of long-term debt | $ 11,400 |
Financial Instruments - Investm
Financial Instruments - Investments (Details) - USD ($) $ in Millions | Sep. 27, 2020 | Dec. 31, 2019 | |
Debt Securities, Held-to-maturity, Maturity, Fair Value [Abstract] | |||
Debt securities, amortized cost | $ 8,208 | $ 8,380 | |
Debt securities, gross unrealized gains | 168 | 6 | |
Debt securities, gross unrealized losses | (7) | (47) | |
Available-for-sale securities and held-to-maturity securities | 8,369 | 8,340 | |
Debt securities maturities, within 1 year, fair value | 8,182 | ||
Debt securities maturities, over 1 to 5 years, fair value | 159 | ||
Debt securities maturities, over 5 years, fair value | 28 | ||
Time deposits and other [Member] | |||
Debt Securities, Held-to-maturity, Maturity [Abstract] | |||
Held-to-maturity securities, debt maturities, total | 290 | 535 | |
Held-to-maturity securities, gross unrealized gains | 0 | 0 | |
Held-to-maturity securities, gross unrealized losses | 0 | 0 | |
Held-to-maturity securities, fair value | 290 | 535 | |
Debt Securities, Held-to-maturity, Maturity, Fair Value [Abstract] | |||
Held-to-maturity securities, debt maturities, within 1 year, fair value | 258 | ||
Held-to-maturity securities, debt maturities, over 1 to 5 years, fair value | 10 | ||
Held-to-maturity securities, debt maturities, over 5 years, fair value | 23 | ||
Held-to-maturity securities, debt maturities, total | 290 | 535 | |
Government and agency - non U.S. [Member] | |||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | |||
Available-for-sale debt securities, amortized cost | 5,743 | 4,895 | |
Available-for-sale debt securities, gross unrealized gains | 164 | 6 | |
Available-for-sale debt securities, gross unrealized losses | (1) | (38) | |
Available-for-sale debt securities | 5,906 | 4,863 | |
Available-for-sale Securities, Debt Maturities [Abstract] | |||
Available-for-sale securities, debt maturities, within 1 year, fair value | 5,906 | ||
Available-for-sale securities, debt maturities, over 1 to 5 years, fair value | 0 | ||
Available-for-sale securities, debt maturities, over 5 years, fair value | 0 | ||
Available-for-sale debt securities, fair value | 5,906 | 4,863 | |
Debt Securities, Held-to-maturity, Maturity [Abstract] | |||
Held-to-maturity securities, debt maturities, total | 70 | 803 | |
Held-to-maturity securities, gross unrealized gains | 0 | 0 | |
Held-to-maturity securities, gross unrealized losses | 0 | 0 | |
Held-to-maturity securities, fair value | 70 | 803 | |
Debt Securities, Held-to-maturity, Maturity, Fair Value [Abstract] | |||
Held-to-maturity securities, debt maturities, within 1 year, fair value | 65 | ||
Held-to-maturity securities, debt maturities, over 1 to 5 years, fair value | 0 | ||
Held-to-maturity securities, debt maturities, over 5 years, fair value | 5 | ||
Held-to-maturity securities, debt maturities, total | 70 | 803 | |
Government and agency - U.S. [Member] | |||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | |||
Available-for-sale debt securities, amortized cost | 726 | 1,120 | |
Available-for-sale debt securities, gross unrealized gains | 0 | 0 | |
Available-for-sale debt securities, gross unrealized losses | (1) | (6) | |
Available-for-sale debt securities | 725 | 1,114 | |
Available-for-sale Securities, Debt Maturities [Abstract] | |||
Available-for-sale securities, debt maturities, within 1 year, fair value | 582 | ||
Available-for-sale securities, debt maturities, over 1 to 5 years, fair value | 142 | ||
Available-for-sale securities, debt maturities, over 5 years, fair value | 0 | ||
Available-for-sale debt securities, fair value | 725 | 1,114 | |
Corporate and other [Member] | |||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | |||
Available-for-sale debt securities, amortized cost | [1] | 1,379 | 1,027 |
Available-for-sale debt securities, gross unrealized gains | [1] | 3 | 0 |
Available-for-sale debt securities, gross unrealized losses | [1] | (5) | (2) |
Available-for-sale debt securities | [1] | 1,378 | 1,025 |
Available-for-sale Securities, Debt Maturities [Abstract] | |||
Available-for-sale securities, debt maturities, within 1 year, fair value | [1] | 1,371 | |
Available-for-sale securities, debt maturities, over 1 to 5 years, fair value | [1] | 7 | |
Available-for-sale securities, debt maturities, over 5 years, fair value | [1] | 0 | |
Available-for-sale debt securities, fair value | [1] | $ 1,378 | $ 1,025 |
[1] | Primarily issued by a diverse group of corporations. |
Financial Instruments - Inves_2
Financial Instruments - Investments - Unrealized Gains and Losses Related to Equity Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | ||
Fair Value Disclosures [Abstract] | |||||
Net (gains)/losses recognized during the period on equity securities | [1],[2] | $ 70 | $ (6) | $ (408) | $ (153) |
Less: Net (gains)/losses recognized during the period on equity securities sold during the period | 2 | (3) | (16) | (13) | |
Net unrealized (gains)/losses during the reporting period on equity securities still held at the reporting date | [3] | $ 68 | $ (3) | $ (391) | $ (140) |
[1] | The losses in the third quarter of 2020 include, among other things, unrealized losses of $131 million related to our investment in Allogene. The gains in the first nine months of 2020 include, among other things, unrealized gains of $243 million related to our investment in Allogene and unrealized gains of $154 million related to our investment in BioNTech. The gains in the first nine months of 2019 included, among other things, unrealized gains of $115 million related to our investments in Cortexyme, Inc. and SpringWorks Therapeutics, Inc. For additional information on investments, see Note 7B . | ||||
[2] | Reported in Other (income)/deductions –– net. See Note 4 . | ||||
[3] | Included in net unrealized gains are observable price changes on equity securities without readily determinable fair values. Since January 1, 2018, there were cumulative impairments and downward adjustments of $82 million and upward adjustments of $63 million. Impairments, downward and upward adjustments were not significant in the third quarters and the first nine months of 2020 and 2019. |
Financial Instruments Financial
Financial Instruments Financial Instruments - Investments - Unrealized Gains and Losses Related to Equity Securities - Footnotes (Details) $ in Millions | Sep. 27, 2020USD ($) |
Fair Value Disclosures [Abstract] | |
Cumulative impairment losses and downward price adjustments on equity securities | $ 82 |
Cumulative upward price adjustments on equity securities | $ 63 |
Financial Instruments - Short-t
Financial Instruments - Short-term Borrowings (Details) - USD ($) $ in Millions | Sep. 27, 2020 | Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |||
Commercial paper | $ 10,990 | $ 13,915 | |
Current portion of long-term debt, principal amount | 2,152 | 1,458 | |
Other short-term borrowings, principal amount | [1] | 226 | 860 |
Total short-term borrowings, principal amount | 13,367 | 16,233 | |
Net fair value adjustments related to hedging and purchase accounting | 0 | 5 | |
Net unamortized discounts, premiums and debt issuance costs | (4) | (43) | |
Total Short-term borrowings, including current portion of long-term debt, carried at historical proceeds, as adjusted | $ 13,363 | $ 16,195 | |
[1] | Other short-term borrowings primarily include cash collateral. See Note 7E . |
Financial Instruments - Long-Te
Financial Instruments - Long-Term Debt - New Issuances (Details) € in Millions, $ in Millions | 9 Months Ended | |||
Sep. 27, 2020USD ($) | Sep. 29, 2019USD ($) | Sep. 27, 2020EUR (€) | ||
Debt Instrument [Line Items] | ||||
Proceeds from issuance of long-term debt | $ 16,700 | $ 4,942 | ||
Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Effective interest rate | 2.67% | 2.67% | ||
Senior Notes [Member] | 2.625% notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 2.625% | 2.625% | ||
Principal | [1] | $ 1,250 | ||
Parent [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal | $ 4,000 | |||
Effective interest rate | 2.11% | 2.11% | ||
Parent [Member] | Senior Notes [Member] | 0.800% notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 0.80% | 0.80% | ||
Principal | $ 750 | |||
Parent [Member] | Senior Notes [Member] | 1.700% notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 1.70% | 1.70% | ||
Principal | $ 1,000 | |||
Parent [Member] | Senior Notes [Member] | 2.550% notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 2.55% | 2.55% | ||
Principal | $ 1,000 | |||
Parent [Member] | Senior Notes [Member] | 2.700% notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 2.70% | 2.70% | ||
Principal | $ 1,250 | |||
Subsidiaries [Member] | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Redemption price percentage | 101.00% | |||
Upjohn Inc [Member] | Subsidiaries [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal | $ 7,450 | |||
Effective interest rate | 2.95% | 2.95% | ||
Proceeds from issuance of long-term debt | $ 11,400 | |||
Upjohn Inc [Member] | Subsidiaries [Member] | Senior Notes [Member] | 1.125% notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 1.125% | 1.125% | ||
Principal | $ 1,000 | |||
Upjohn Inc [Member] | Subsidiaries [Member] | Senior Notes [Member] | 1.650% notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 1.65% | 1.65% | ||
Principal | $ 750 | |||
Upjohn Inc [Member] | Subsidiaries [Member] | Senior Notes [Member] | 2.300% notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 2.30% | 2.30% | ||
Principal | $ 750 | |||
Upjohn Inc [Member] | Subsidiaries [Member] | Senior Notes [Member] | 2.700% notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 2.70% | 2.70% | ||
Principal | $ 1,450 | |||
Upjohn Inc [Member] | Subsidiaries [Member] | Senior Notes [Member] | 3.850% notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 3.85% | 3.85% | ||
Principal | $ 1,500 | |||
Upjohn Inc [Member] | Subsidiaries [Member] | Senior Notes [Member] | 4.000% notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 4.00% | 4.00% | ||
Principal | $ 2,000 | |||
Upjohn Finance B.V. [Member] | Subsidiaries [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal | € | € 3,600 | |||
Effective interest rate | 1.37% | 1.37% | ||
Upjohn Finance B.V. [Member] | Subsidiaries [Member] | Senior Notes [Member] | 0.816% notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 0.816% | 0.816% | ||
Principal | € | € 750 | |||
Upjohn Finance B.V. [Member] | Subsidiaries [Member] | Senior Notes [Member] | 1.023% notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 1.023% | 1.023% | ||
Principal | € | € 750 | |||
Upjohn Finance B.V. [Member] | Subsidiaries [Member] | Senior Notes [Member] | 1.362% notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 1.362% | 1.362% | ||
Principal | € | € 850 | |||
Upjohn Finance B.V. [Member] | Subsidiaries [Member] | Senior Notes [Member] | 1.908% notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 1.908% | 1.908% | ||
Principal | € | € 1,250 | |||
[1] | The notes may be redeemed by us at any time, in whole, or in part, at a redemption price plus accrued and unpaid interest. |
Financial Instruments - Long-_2
Financial Instruments - Long-Term Debt (Details) - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 27, 2020 | Sep. 29, 2019 | Dec. 31, 2019 | ||
Debt Instrument [Line Items] | ||||
Net fair value adjustments related to hedging and purchase accounting | $ 0 | $ 5 | ||
Net unamortized discounts, premiums and debt issuance costs | (4) | (43) | ||
Total long-term debt, carried at historical proceeds, as adjusted | 49,785 | 35,955 | ||
Current portion of long-term debt, carried at historical proceeds, as adjusted (not included above) | 2,149 | 1,462 | ||
Proceeds from issuance of long-term debt | 16,700 | $ 4,942 | ||
Unsecured Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt, principal amount | [1] | 48,473 | 34,820 | |
Net fair value adjustments related to hedging and purchase accounting | 1,621 | 1,305 | ||
Net unamortized discounts, premiums and debt issuance costs | (314) | (176) | ||
Other long-term debt | 5 | 5 | ||
Total long-term debt, carried at historical proceeds, as adjusted | 49,785 | 35,955 | ||
Current portion of long-term debt, carried at historical proceeds, as adjusted (not included above) | 2,149 | $ 1,462 | ||
Subsidiaries [Member] | Upjohn Inc [Member] | ||||
Debt Instrument [Line Items] | ||||
Proceeds from issuance of long-term debt | $ 11,400 | |||
[1] | As of September 27, 2020, $11.4 billion of proceeds from the Upjohn debt transactions are invested in money market funds and included in Restricted short-term investments in the condensed consolidated balance sheet. |
Financial Instruments - Long-_3
Financial Instruments - Long-Term Debt Narrative (Details) $ in Millions | Mar. 29, 2020USD ($) |
Unsecured Debt [Member] | Senior Notes Due 2047 [Member] | |
Debt Instrument [Line Items] | |
Repurchase amount | $ 1,065 |
Financial Instruments - Derivat
Financial Instruments - Derivative Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 27, 2020USD ($) | |
Derivative [Line Items] | |
Derivatives in a net liability position | $ 1,100 |
Collateral posted | 1,200 |
Cash collateral received | $ 169 |
Foreign exchange contracts [Member] | |
Derivative [Line Items] | |
Derivative term of contract | 2 years |
Financial Instruments - Fair Va
Financial Instruments - Fair Value of Derivative Financial Instruments and Related Notional Amounts (Details) - USD ($) $ in Millions | Sep. 27, 2020 | Dec. 31, 2019 | |
Derivative [Line Items] | |||
Asset | $ 568 | $ 992 | |
Liability | 1,272 | 718 | |
Derivatives designated as hedging instruments [Member] | |||
Derivative [Line Items] | |||
Asset | 493 | 909 | |
Liability | 1,187 | 662 | |
Derivatives designated as hedging instruments [Member] | Foreign exchange contracts [Member] | |||
Derivative [Line Items] | |||
Notional | [1] | 24,545 | 25,193 |
Asset | [1] | 346 | 591 |
Liability | [1] | 1,187 | 662 |
Derivatives designated as hedging instruments [Member] | Interest rate contracts [Member] | |||
Derivative [Line Items] | |||
Notional | 1,995 | 6,645 | |
Asset | 147 | 318 | |
Liability | 0 | 0 | |
Derivatives not designated as hedging instruments [Member] | Foreign exchange contracts [Member] | |||
Derivative [Line Items] | |||
Notional | 16,084 | 19,623 | |
Asset | 75 | 82 | |
Liability | 85 | 55 | |
Inventory sales [Member] | Derivatives designated as hedging instruments [Member] | Foreign exchange contracts [Member] | |||
Derivative [Line Items] | |||
Notional | [1] | $ 5,100 | $ 5,900 |
[1] | The notional amount of outstanding foreign currency forward-exchange contracts hedging our intercompany forecasted inventory sales was $5.1 billion as of September 27, 2020 and $5.9 billion as of December 31, 2019. |
Financial Instruments - Deriv_2
Financial Instruments - Derivative Financial Instruments and Hedging Activities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |||||
Derivative [Line Items] | ||||||||
Amount of Gains/(Losses) Recognized in OCI | $ (372) | $ 150 | $ (661) | $ 241 | ||||
All other, net - Amount of Gains/(Losses) Recognized in OCI | [1],[2],[3] | 0 | (1) | 12 | 0 | |||
Amount of Gains/(Losses) Recognized in OCI | [2] | (692) | [1] | 429 | [1] | (553) | [1] | 617 |
Amount of Gains/(Losses) Reclassified from OCI into OID and COS | [4] | (143) | 29 | 25 | 372 | |||
OID [Member] | ||||||||
Derivative [Line Items] | ||||||||
Amount of Gains/(Losses) Recognized in OID | [2] | 255 | (77) | 205 | (201) | |||
Other (Income) Deductions And Cost Of Sales [Member] | ||||||||
Derivative [Line Items] | ||||||||
Amount of Gains/(Losses) Reclassified from OCI into OID and COS | [2],[3] | 0 | 0 | (1) | 0 | |||
Amount of Gains/(Losses) Reclassified from OCI into OID and COS | [2] | (104) | 74 | 147 | 472 | |||
Designated as Hedging Instrument [Member] | Foreign exchange contracts [Member] | ||||||||
Derivative [Line Items] | ||||||||
Amount of Gains/(Losses) Recognized in OCI | [1],[2],[5] | (379) | 131 | (721) | 137 | |||
Amount of Gains/(Losses) Recognized in OCI | [1],[2] | (257) | 112 | (17) | 87 | |||
Designated as Hedging Instrument [Member] | Foreign currency short-term borrowings [Member] | ||||||||
Derivative [Line Items] | ||||||||
Amount of Gains/(Losses) Recognized in OCI | [1],[2],[6] | 0 | 45 | 8 | 65 | |||
Designated as Hedging Instrument [Member] | Foreign currency long-term debt [Member] | ||||||||
Derivative [Line Items] | ||||||||
Amount of Gains/(Losses) Recognized in OCI | [1],[2],[6] | (72) | 79 | (69) | 89 | |||
Designated as Hedging Instrument [Member] | OID [Member] | Interest rate contracts [Member] | ||||||||
Derivative [Line Items] | ||||||||
Amount of Gains/(Losses) Recognized in OID | [2] | (9) | 378 | 383 | 1,191 | |||
Hedged item | [2] | 9 | (378) | (383) | (1,191) | |||
Designated as Hedging Instrument [Member] | Other (Income) Deductions And Cost Of Sales [Member] | Foreign exchange contracts [Member] | ||||||||
Derivative [Line Items] | ||||||||
Amount of Gains/(Losses) Reclassified from OCI into OID and COS | [2],[5] | (149) | 7 | (23) | 265 | |||
Amount of Gains/(Losses) Reclassified from OCI into OID and COS | [2] | 0 | 0 | 0 | 0 | |||
Designated as Hedging Instrument [Member] | Other (Income) Deductions And Cost Of Sales [Member] | Foreign currency short-term borrowings [Member] | ||||||||
Derivative [Line Items] | ||||||||
Amount of Gains/(Losses) Reclassified from OCI into OID and COS | [2],[6] | 0 | 0 | 0 | 0 | |||
Designated as Hedging Instrument [Member] | Other (Income) Deductions And Cost Of Sales [Member] | Foreign currency long-term debt [Member] | ||||||||
Derivative [Line Items] | ||||||||
Amount of Gains/(Losses) Reclassified from OCI into OID and COS | [2],[6] | 0 | 0 | 0 | 0 | |||
Derivative Financial Instruments Not Designated as Hedges [Member] | OID [Member] | Foreign exchange contracts [Member] | ||||||||
Derivative [Line Items] | ||||||||
Amount of Gains/(Losses) Recognized in OID | [2] | 255 | (77) | 205 | (201) | |||
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Foreign exchange contracts [Member] | ||||||||
Derivative [Line Items] | ||||||||
Amount excluded from effectiveness testing | [1],[2],[3] | 7 | 21 | 49 | 105 | |||
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Other (Income) Deductions And Cost Of Sales [Member] | Foreign exchange contracts [Member] | ||||||||
Derivative [Line Items] | ||||||||
Amount excluded from effectiveness testing | [2],[3] | 7 | 22 | 48 | 108 | |||
Net Investment Hedging [Member] | Designated as Hedging Instrument [Member] | Foreign exchange contracts [Member] | ||||||||
Derivative [Line Items] | ||||||||
Amount excluded from effectiveness testing | [1],[2],[3] | 9 | 43 | 185 | 136 | |||
Net Investment Hedging [Member] | Designated as Hedging Instrument [Member] | Other (Income) Deductions And Cost Of Sales [Member] | Foreign exchange contracts [Member] | ||||||||
Derivative [Line Items] | ||||||||
Amount excluded from effectiveness testing | [2],[3] | $ 38 | $ 45 | $ 122 | $ 99 | |||
[1] | For derivative financial instruments in net investment hedge relationships and for foreign currency debt designated as hedging instruments, the gains and losses are included in Other comprehensive income/(loss)––Foreign currency translation adjustments, net. | |||||||
[2] | OID = Other (income)/deductions—net, included in Other (income)/deductions—net in the condensed consolidated statements of income . COS = Cost of Sales, included in Cost of sales in the condensed consolidated statements of income. OCI = Other comprehensive income/(loss), included in the condensed consolidated statements of comprehensive income . | |||||||
[3] | The amounts reclassified from OCI were reclassified into OID. | |||||||
[4] | Reclassified into Other (income)/deductions—net and Cost of sales in the condensed consolidated statements of income. See Note 7E. | |||||||
[5] | The amounts reclassified from OCI into COS were: • a net gain of $34 million in the third quarter of 2020; • a net gain of $184 million in the first nine months of 2020; • a net gain of $66 million in the third quarter of 2019; and • a net gain of $169 million in the first nine months of 2019. The remaining amounts were reclassified from OCI into OID. Based on quarter-end foreign exchange rates that are subject to change, we expect to reclassify a pre-tax loss of $192 million within the next 12 months into income . The maximum length of time over which we are hedging future foreign exchange cash flow relates to our $1.8 billion U.K. pound debt maturing in 2043. | |||||||
[6] | Long-term debt includes foreign currency borrowings with carrying values of $2.0 billion as of September 27, 2020, which are used as hedging instruments in net investment hedge relationships. |
Financial Instruments - Deriv_3
Financial Instruments - Derivative Financial Instruments and Hedging Activities - Footnotes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | ||
Derivative [Line Items] | |||||
Amount of (Gains)/Losses Reclassified from OCI into OID and COS | [1] | $ 143 | $ (29) | $ (25) | $ (372) |
Pre-tax loss expected to be reclassified within the next 12 months | 192 | 192 | |||
Unsecured Debt [Member] | |||||
Derivative [Line Items] | |||||
Long-term debt | 1,800 | 1,800 | |||
Foreign currency long-term debt [Member] | |||||
Derivative [Line Items] | |||||
Long-term debt | 2,000 | 2,000 | |||
Designated as Hedging Instrument [Member] | Cost of sales [Member] | Foreign exchange contracts [Member] | |||||
Derivative [Line Items] | |||||
Amount of (Gains)/Losses Reclassified from OCI into OID and COS | $ (34) | $ (66) | $ (184) | $ (169) | |
[1] | Reclassified into Other (income)/deductions—net and Cost of sales in the condensed consolidated statements of income. See Note 7E. |
Financial Instruments - Cumulat
Financial Instruments - Cumulative Basis Adjustments for Fair Value Hedges (Details) - USD ($) $ in Millions | Sep. 27, 2020 | Dec. 31, 2019 | |
Short-term investments [Member] | |||
Derivative [Line Items] | |||
Carrying Amount of Actively Hedged Assets | [1] | $ 45 | $ 0 |
Cumulative Amount of Fair Value Hedging Adjustment Increase/(Decrease) to Carrying Amount, Active Hedging Relationships, Asset | 0 | 0 | |
Cumulative Amount of Fair Value Hedging Adjustment Increase/(Decrease) to Carrying Amount, Discontinued Hedging Relationships, Asset | 0 | 0 | |
Long-term investments [Member] | |||
Derivative [Line Items] | |||
Carrying Amount of Actively Hedged Assets | [1] | 0 | 45 |
Cumulative Amount of Fair Value Hedging Adjustment Increase/(Decrease) to Carrying Amount, Active Hedging Relationships, Asset | 0 | 0 | |
Cumulative Amount of Fair Value Hedging Adjustment Increase/(Decrease) to Carrying Amount, Discontinued Hedging Relationships, Asset | 0 | 0 | |
Long-term debt [Member] | |||
Derivative [Line Items] | |||
Carrying Amount of Actively Hedged Liabilities | [1] | 2,019 | 7,092 |
Cumulative Amount of Fair Value Hedging Adjustment Increase/(Decrease) to Carrying Amount, Active Hedging Relationships, Liability | 131 | 266 | |
Cumulative Amount of Fair Value Hedging Adjustment Increase/(Decrease) to Carrying Amount, Discontinued Hedging Relationships, Liability | $ 1,165 | $ 690 | |
[1] | Carrying amounts exclude the cumulative amount of fair value hedging adjustments. |
Financial Instruments - Credit
Financial Instruments - Credit Risk (Details) $ in Billions | 9 Months Ended |
Sep. 27, 2020USD ($) | |
Bank sector [Member] | |
Concentration Risk [Line Items] | |
Maximum exposure, amount | $ 1.4 |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Millions | Sep. 27, 2020 | Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |||
Finished goods | $ 3,521 | $ 2,750 | |
Work-in-process | 5,014 | 4,743 | |
Raw materials and supplies | 760 | 790 | |
Inventories | [1] | 9,295 | 8,283 |
Noncurrent inventories not included above | [2] | $ 948 | $ 714 |
[1] | The change from December 31, 2019 reflects increases for certain products, including inventory build for new product launches, market demand, supply recovery and network strategy, and an increase due to foreign exchange. | ||
[2] | Included in Other noncurrent assets . There are no recoverability issues associated with these amounts. |
Identifiable Intangible Asset_3
Identifiable Intangible Assets and Goodwill - Finite-lived and Indefinite-lived Intangible Assets (Detail) - USD ($) $ in Millions | Sep. 27, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, gross carrying amount | $ 93,358 | $ 91,425 | |
Finite-lived intangible assets, accumulated amortization | [1] | (68,216) | (65,037) |
Finite-lived intangible assets, net | 25,142 | 26,387 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | 5,785 | 8,983 | |
Intangible assets, gross carrying amount | [1] | 99,143 | 100,408 |
Finite-lived intangible assets, accumulated amortization | [1] | (68,216) | (65,037) |
Identifiable Intangible Assets, less Accumulated Amortization | [1] | 30,927 | 35,370 |
Brands [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | 1,991 | 1,991 | |
IPR&D [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | [2] | 3,221 | 5,919 |
License Agreements and Other [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | [3] | 573 | 1,073 |
Developed technology rights [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, gross carrying amount | [4] | 90,052 | 88,730 |
Finite-lived intangible assets, accumulated amortization | [4] | (66,212) | (63,106) |
Finite-lived intangible assets, net | [4] | 23,840 | 25,625 |
Indefinite-lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, accumulated amortization | [4] | (66,212) | (63,106) |
Brands [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, gross carrying amount | 922 | 922 | |
Finite-lived intangible assets, accumulated amortization | (766) | (741) | |
Finite-lived intangible assets, net | 156 | 181 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, accumulated amortization | (766) | (741) | |
License Agreements and Other [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, gross carrying amount | [3] | 2,385 | 1,772 |
Finite-lived intangible assets, accumulated amortization | [3] | (1,238) | (1,191) |
Finite-lived intangible assets, net | [3] | 1,146 | 582 |
Indefinite-lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, accumulated amortization | [3] | $ (1,238) | $ (1,191) |
[1] | The decrease is primarily due to amortization, the $900 million impairment of IPR&D, and measurement period adjustments related to the acquisition of Array. | ||
[2] | The changes in the gross carrying amount primarily reflect a $1.2 billion measurement period adjustment related to the acquisition of Array, a $900 million impairment of IPR&D (see Note 4 ), and the transfer of $600 million from IPR&D to Developed technology rights to reflect the approval of Braftovi in combination with Erbitux ® (cetuximab), for the treatment of BRAF V600E -mutant metastatic colorectal cancer after prior therapy. | ||
[3] | The changes in the gross carrying amounts primarily reflect the transfer of $600 million from Indefinite-lived Licensing agreements and other to finite-lived Licensing agreements and other to reflect the approval in the U.S. of several products subject to out-licensing arrangements acquired from Array, as well as measurement period adjustments related to the acquisition of Array. | ||
[4] | The change in the gross carrying amount primarily reflect the transfer of $600 million from IPR&D to Developed technology rights to reflect the approval of Braftovi in combination with Erbitux ® (cetuximab), for the treatment of BRAF V600E -mutant metastatic colorectal cancer after prior therapy and a $200 million measurement period adjustment related to the acquisition of Array (see Note 2A ) . |
Identifiable Intangible Asset_4
Identifiable Intangible Assets and Goodwill - Finite-lived and Indefinite-lived Intangible Assets Footnotes (Details) $ in Millions | 9 Months Ended | |
Sep. 27, 2020USD ($) | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset impairment charge | $ 900 | |
Braftovi [Member] | Developed technology rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets period increase (decrease) | 600 | |
Array [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset measurement period adjustments | (900) | |
Array [Member] | Developed technology rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset measurement period adjustments | 200 | |
Array [Member] | Licensing Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets period increase (decrease) | 600 | |
Intangible asset measurement period adjustments | 1,200 | |
IPR&D [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset impairment charge | 900 | [1] |
IPR&D [Member] | Braftovi [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets, period increase (decrease) | (600) | |
License Agreements and Other [Member] | Array [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets, period increase (decrease) | $ (600) | |
[1] | Reflects intangible assets written down to fair value in the first nine months of 2020. Fair value was determined using the income approach, specifically the multi-period excess earnings method, also known as the discounted cash flow method. We started with a forecast of all the expected net cash flows associated with the asset and then applied an asset-specific discount rate to arrive at a net present value amount. Some of the more significant estimates and assumptions inherent in this approach include: the amount and timing of the projected net cash flows, which includes the expected impact of competitive, legal and/or regulatory forces on the product; the discount rate, which seeks to reflect the various risks inherent in the projected cash flows; and the tax rate, which seeks to incorporate the geographic diversity of the projected cash flows. |
Identifiable Intangible Asset_5
Identifiable Intangible Assets and Goodwill - Finite-lived Intangible Assets Percentage of Total Intangibles (Details) | Sep. 27, 2020 |
Operating Segments [Member] | Developed technology rights [Member] | Biopharma [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Percentage of total identifiable intangible assets, less accumulated amortization | 99.00% |
Operating Segments [Member] | Developed technology rights [Member] | Upjohn [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Percentage of total identifiable intangible assets, less accumulated amortization | 1.00% |
Operating Segments [Member] | Brands [Member] | Biopharma [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Percentage of total identifiable intangible assets, less accumulated amortization | 100.00% |
Operating Segments [Member] | Brands [Member] | Upjohn [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Percentage of total identifiable intangible assets, less accumulated amortization | 0.00% |
Operating Segments [Member] | Licensing Agreements And Other [Member] | Biopharma [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Percentage of total identifiable intangible assets, less accumulated amortization | 99.00% |
Operating Segments [Member] | Licensing Agreements And Other [Member] | Upjohn [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Percentage of total identifiable intangible assets, less accumulated amortization | 1.00% |
WRDM [Member] | Segment Reconciling Items [Member] | Developed technology rights [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Percentage of total identifiable intangible assets, less accumulated amortization | 0.00% |
WRDM [Member] | Segment Reconciling Items [Member] | Brands [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Percentage of total identifiable intangible assets, less accumulated amortization | 0.00% |
WRDM [Member] | Segment Reconciling Items [Member] | Licensing Agreements And Other [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Percentage of total identifiable intangible assets, less accumulated amortization | 1.00% |
Identifiable Intangible Asset_6
Identifiable Intangible Assets and Goodwill - Indefinite-lived Intangible Assets Percentage of Total Intangibles (Details) | Sep. 27, 2020 |
Biopharma [Member] | Operating Segments [Member] | Brands [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Percentage of total identifiable intangible assets, less accumulated amortization | 42.00% |
Biopharma [Member] | Operating Segments [Member] | IPR&D [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Percentage of total identifiable intangible assets, less accumulated amortization | 92.00% |
Biopharma [Member] | Operating Segments [Member] | Licensing Agreements And Other [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Percentage of total identifiable intangible assets, less accumulated amortization | 100.00% |
Upjohn [Member] | Operating Segments [Member] | Brands [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Percentage of total identifiable intangible assets, less accumulated amortization | 58.00% |
Upjohn [Member] | Operating Segments [Member] | IPR&D [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Percentage of total identifiable intangible assets, less accumulated amortization | 0.00% |
Upjohn [Member] | Operating Segments [Member] | Licensing Agreements And Other [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Percentage of total identifiable intangible assets, less accumulated amortization | 0.00% |
WRDM [Member] | Segment Reconciling Items [Member] | Brands [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Percentage of total identifiable intangible assets, less accumulated amortization | 0.00% |
WRDM [Member] | Segment Reconciling Items [Member] | IPR&D [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Percentage of total identifiable intangible assets, less accumulated amortization | 8.00% |
WRDM [Member] | Segment Reconciling Items [Member] | Licensing Agreements And Other [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Percentage of total identifiable intangible assets, less accumulated amortization | 0.00% |
Identifiable Intangible Asset_7
Identifiable Intangible Assets and Goodwill - Narrative (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Finite-Lived Intangible Assets [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense for finite-lived intangible assets | $ 910 | $ 1,200 | $ 2,700 | $ 3,600 |
Identifiable Intangible Asset_8
Identifiable Intangible Assets and Goodwill - Goodwill (Detail) $ in Millions | 9 Months Ended | |
Sep. 27, 2020USD ($) | ||
Goodwill [Roll Forward] | ||
Balance, beginning | $ 58,653 | |
Additions | 727 | [1] |
Other | 522 | [2] |
Balance, ending | 59,902 | |
Operating Segments [Member] | Biopharma [Member] | ||
Goodwill [Roll Forward] | ||
Balance, beginning | 48,202 | |
Additions | 727 | [1] |
Other | 420 | [2] |
Balance, ending | 49,349 | |
Operating Segments [Member] | Upjohn [Member] | ||
Goodwill [Roll Forward] | ||
Balance, beginning | 10,451 | |
Additions | 0 | [1] |
Other | 102 | [2] |
Balance, ending | $ 10,553 | |
[1] | Additions primarily represents the impact of measurement period adjustments related to our Array acquisition (see Note 2A ). | |
[2] | Represents the impact of foreign exchange. |
Pension and Postretirement Be_3
Pension and Postretirement Benefit Plans - Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Pension Plan [Member] | U.S. [Member] | Qualified [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 0 | $ 0 | $ 0 | $ 0 |
Interest cost | 131 | 157 | 393 | 472 |
Expected return on plan assets | (251) | (222) | (754) | (667) |
Amortization of: | ||||
Actuarial losses | 32 | 37 | 96 | 110 |
Prior service credits | (1) | (1) | (2) | (2) |
Curtailments | 0 | 0 | 0 | 0 |
Settlements | 171 | 1 | 191 | 3 |
Special termination benefits | 0 | 3 | 0 | 4 |
Net periodic benefit cost/(credit) reported in income | 82 | (25) | (77) | (80) |
Pension Plan [Member] | International [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 36 | 31 | 108 | 94 |
Interest cost | 40 | 53 | 122 | 162 |
Expected return on plan assets | (75) | (79) | (228) | (239) |
Amortization of: | ||||
Actuarial losses | 31 | 20 | 93 | 61 |
Prior service credits | (1) | (1) | (2) | (3) |
Curtailments | 0 | 0 | 0 | 0 |
Settlements | 1 | 12 | 2 | 12 |
Special termination benefits | 0 | 0 | 0 | 0 |
Net periodic benefit cost/(credit) reported in income | 32 | 37 | 96 | 88 |
Supplemental Employee Retirement Plan [Member] | U.S. [Member] | Non-Qualified [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 9 | 12 | 26 | 37 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of: | ||||
Actuarial losses | 4 | 2 | 11 | 7 |
Prior service credits | 0 | 0 | 0 | (1) |
Curtailments | 0 | 0 | 0 | 0 |
Settlements | 3 | 22 | 47 | 21 |
Special termination benefits | 0 | 5 | 2 | 14 |
Net periodic benefit cost/(credit) reported in income | 15 | 41 | 85 | 78 |
Postretirement Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 10 | 9 | 29 | 28 |
Interest cost | 13 | 19 | 38 | 57 |
Expected return on plan assets | (9) | (8) | (27) | (25) |
Amortization of: | ||||
Actuarial losses | 0 | 0 | 0 | 2 |
Prior service credits | (43) | (43) | (129) | (132) |
Curtailments | 0 | (47) | 0 | (47) |
Settlements | 0 | (10) | 0 | (10) |
Special termination benefits | 0 | 1 | 0 | 2 |
Net periodic benefit cost/(credit) reported in income | $ (30) | $ (78) | $ (89) | $ (124) |
Pension and Postretirement Be_4
Pension and Postretirement Benefit Plans - Employer Contributions (Detail) $ in Millions | 1 Months Ended | 9 Months Ended | ||
Sep. 27, 2020USD ($) | Sep. 27, 2020USD ($) | |||
Pension Plan [Member] | U.S. [Member] | Qualified [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contributions from our general assets for the nine months ended September 27, 2020 | $ 1,250 | $ 1,253 | ||
Expected contributions from our general assets during 2020 | 1,253 | [1] | 1,253 | [1] |
Pension Plan [Member] | International [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contributions from our general assets for the nine months ended September 27, 2020 | 151 | |||
Expected contributions from our general assets during 2020 | 186 | [1] | 186 | [1] |
Supplemental Employee Retirement Plan [Member] | U.S. [Member] | Non-Qualified [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contributions from our general assets for the nine months ended September 27, 2020 | 169 | |||
Expected contributions from our general assets during 2020 | 188 | [1] | 188 | [1] |
Postretirement Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contributions from our general assets for the nine months ended September 27, 2020 | 84 | |||
Expected contributions from our general assets during 2020 | $ 122 | [1] | $ 122 | [1] |
[1] | Contributions expected to be made for 2020 are inclusive of amounts contributed during the nine months ended September 27, 2020. The U.S. supplemental (non-qualified) pension plan, international pension plan and the postretirement plan contributions from our general assets include direct employer benefit payments. For the U.S. qualified plans, we made a $1.25 billion voluntary contribution in September 2020. |
Equity - Preferred Stock (Detai
Equity - Preferred Stock (Details) | May 04, 2020shares |
Class of Stock [Line Items] | |
Preferred stock outstanding (in shares) | 0 |
Common Stock [Member] | |
Class of Stock [Line Items] | |
Shares issued upon conversion of convertible preferred stock (in shares) | 1,070,369 |
Equity - Dividends (Details)
Equity - Dividends (Details) - $ / shares | Sep. 24, 2020 | Jun. 25, 2020 | Apr. 23, 2020 | Dec. 13, 2019 | Sep. 24, 2019 | Jun. 27, 2019 | Apr. 25, 2019 | Dec. 14, 2018 |
Equity [Abstract] | ||||||||
Cash dividends declared per share (in dollars per share) | $ 0.38 | $ 0.38 | $ 0.38 | $ 0.38 | $ 0.36 | $ 0.36 | $ 0.36 | $ 0.36 |
Earnings Per Common Share Att_3
Earnings Per Common Share Attributable to Pfizer Inc. Common Shareholders (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | ||
EPS Numerator––Basic | |||||
Income from continuing operations | $ 2,202 | $ 7,680 | $ 9,046 | $ 16,625 | |
Less: Net income attributable to noncontrolling interests | 8 | 4 | 25 | 19 | |
Income from continuing operations attributable to Pfizer Inc. | 2,194 | 7,676 | 9,022 | 16,606 | |
Less: Preferred stock dividends––net of tax | 0 | 0 | 0 | 1 | |
Income from continuing operations attributable to Pfizer Inc. common shareholders | 2,194 | 7,676 | 9,021 | 16,605 | |
Discontinued operations––net of tax | 0 | 4 | 0 | 4 | |
Net income attributable to Pfizer Inc. common shareholders | 2,194 | 7,680 | 9,021 | 16,609 | |
EPS Numerator––Diluted | |||||
Income from continuing operations attributable to Pfizer Inc. common shareholders and assumed conversions | 2,194 | 7,676 | 9,022 | 16,606 | |
Discontinued operations––net of tax, attributable to Pfizer Inc. common shareholders and assumed conversions | 0 | 4 | 0 | 4 | |
Net income attributable to Pfizer Inc. common shareholders and assumed conversions | $ 2,194 | $ 7,680 | $ 9,022 | $ 16,609 | |
EPS Denominator | |||||
Weighted-average number of common shares outstanding––Basic (shares) | 5,557 | 5,545 | 5,552 | 5,581 | |
Common-share equivalents: stock options, stock issuable under employee compensation plans and convertible preferred stock (shares) | 76 | 104 | 70 | 110 | |
Weighted-average number of common shares outstanding––Diluted (shares) | 5,633 | 5,649 | 5,622 | 5,690 | |
Anti-dilutive common stock equivalents (shares) | [1] | 7 | 3 | 5 | 2 |
[1] | These common stock equivalents were outstanding for the periods presented, but were not included in the computation of diluted EPS for those periods because their inclusion would have had an anti-dilutive effect. |
Contingencies and Certain Com_2
Contingencies and Certain Commitments (Patent Litigation) (Details) | 1 Months Ended | 3 Months Ended | |||||
Jul. 31, 2020plaintiff | Jan. 31, 2020Patents | Mar. 31, 2019Patents | Jun. 30, 2018Patents | Oct. 31, 2017Patents | Mar. 31, 2017Patents | Apr. 30, 2017DefendantPatents | |
NHS Scotland vs. Dr Reddy's [Member] | Pending Litigation [Member] | Patent Infringement [Member] | |||||||
Gain Contingencies [Line Items] | |||||||
Number of plaintiffs | plaintiff | 14 | ||||||
Patent Infringement [Member] | |||||||
Gain Contingencies [Line Items] | |||||||
Number of patents which the Patent Trial and Appeal Board refused to initiate proceedings | 2 | ||||||
Patent Infringement [Member] | Judicial Ruling [Member] | |||||||
Gain Contingencies [Line Items] | |||||||
Number of patents infringed upon | 1 | ||||||
Patent Infringement [Member] | Pfizer Versus Generic Companies [Member] | Pending Litigation [Member] | |||||||
Gain Contingencies [Line Items] | |||||||
Number of patents allegedly infringed upon | 2 | ||||||
Patent Infringement [Member] | Pfizer Versus Viwit Pharmaceutical Co. Ltd. [Member] | Settled Litigation [Member] | |||||||
Gain Contingencies [Line Items] | |||||||
Number of patents allegedly infringed upon | 3 | ||||||
Patent Infringement [Member] | Xeljanz [Member] | Pfizer Versus Zydus [Member] | Pending Litigation [Member] | |||||||
Gain Contingencies [Line Items] | |||||||
Number of patents allegedly infringed upon | 3 | ||||||
Patent Infringement [Member] | Eliquis [Member] | Pfizer and BMS Versus Several Generic Manufacturers [Member] | Pending Litigation [Member] | |||||||
Gain Contingencies [Line Items] | |||||||
Number of patents allegedly infringed upon | 3 | ||||||
Number of defendants | Defendant | 25 | ||||||
Number of patents allegedly infringed upon due to expire December 2019 | 1 |
Contingencies and Certain Com_3
Contingencies and Certain Commitments (Product Litigation, Commercial and Other Matters, Resolved Matters) (Details) $ in Millions | 1 Months Ended | 3 Months Ended | ||||
Oct. 31, 2018manufacturer | Sep. 30, 2018lagoon | Nov. 30, 2017class_action | Mar. 31, 2013lagoon | Jun. 28, 2020USD ($) | Sep. 27, 2020lawsuit | |
Loss Contingencies [Line Items] | ||||||
Number of class actions filed | class_action | 2 | |||||
Hormone Therapy Products [Member] | Class Action Versus Wyeth [Member] | Settled Litigation [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Settlement agreed | $ | $ 200 | |||||
Docetaxel [Member] | Pfizer And Hospira And Various Other Manufacturers Versus Mississippi Attorney General [Member] | Pending Litigation [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Number of defendants other than main defendant | manufacturer | 8 | |||||
Environmental Remediation Litigation [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Number of lagoons | lagoon | 2 | 2 | ||||
Minimum [Member] | EpiPen [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Number of lawsuits | lawsuit | 1 |
Contingencies and Certain Com_4
Contingencies and Certain Commitments - Contingent Consideration (Details) - USD ($) $ in Millions | Sep. 27, 2020 | Dec. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
Fair value of contingent consideration | $ 701 | $ 711 |
Contingent consideration liability current | 125 | 160 |
Contingent consideration liability noncurrent | $ 576 | $ 551 |
Segment, Geographic and Other_3
Segment, Geographic and Other Revenue Information - Narrative (Detail) | 7 Months Ended |
Jul. 31, 2019Operating_Segment | |
Segment Reporting [Abstract] | |
Number of segments | 3 |
Segment, Geographic and Other_4
Segment, Geographic and Other Revenue Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | ||
Segment Reporting Information [Line Items] | |||||
Revenues | $ 12,131 | $ 12,680 | $ 35,961 | $ 39,062 | |
Earnings | [1] | 2,176 | 10,727 | 10,014 | 19,190 |
Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 12,131 | 12,303 | 35,961 | 36,964 | |
Earnings | [1] | 7,816 | 7,890 | 23,554 | 24,096 |
Segment Reconciling Items [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 377 | 0 | 2,098 | |
Earnings | [1] | (1,939) | (1,469) | (4,958) | (3,776) |
Segment Reconciling Items [Member] | Purchase Accounting Adjustments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Earnings | [1] | (823) | (1,141) | (2,545) | (3,357) |
Segment Reconciling Items [Member] | Acquisition-Related Costs [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Earnings | [1] | (11) | (300) | (46) | (152) |
Segment Reconciling Items [Member] | Certain Significant Items [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | [2] | 0 | 0 | 0 | 0 |
Earnings | [1],[2] | (1,675) | 7,187 | (2,554) | 6,495 |
Corporate and other unallocated [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Earnings | [1] | (1,192) | (1,439) | (3,437) | (4,116) |
Biopharma [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 10,215 | 9,952 | 30,017 | 28,429 | |
Biopharma [Member] | Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 10,215 | 9,952 | 30,017 | 28,429 | |
Earnings | [1] | 6,807 | 6,506 | 20,186 | 18,461 |
Upjohn [Member] | Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 1,916 | 2,351 | 5,944 | 8,535 | |
Earnings | [1] | $ 1,009 | $ 1,384 | $ 3,367 | $ 5,635 |
[1] | Income from continuing operations before provision/(benefit) for taxes on income . Biopharma’s earnings include dividend income of $44 million in the third quarter of 2020 and $43 million in the third quarter of 2019, and $196 million in the first nine months of 2020 and $184 million in the first nine months of 2019 from our investment in ViiV. See Note 4. | ||||
[2] | Certain significant items are substantive and/or unusual, and in some cases recurring, items (as noted above) that, either as a result of their nature or size, would not be expected to occur as part of our normal business on a regular basis. In the third quarter and first nine months of 2020, includes, among other items, intangible asset impairment charges of $900 million, recorded in Other (income)/deductions—net, related to IPR&D assets acquired in connection with our Array acquisition. In the third quarter and first nine months of 2019, includes, among other items, a pre-tax gain of $8.1 billion recorded in (Gain) on completion of Consumer Healthcare JV transaction associated with the completion of the GSK Consumer Healthcare joint venture transaction ( See Note 2 ). Certain significant items are discussed further in Note 3 and Note 4 |
Segment, Geographic and Other_5
Segment, Geographic and Other Revenue Information - Footnotes (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | ||
Segment Reporting Information [Line Items] | |||||
Intangible asset impairment charge | $ 900 | ||||
Gain on completion of Consumer Healthcare JV transaction | $ 0 | $ 8,087 | 6 | $ 8,087 | |
IPR&D [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Intangible asset impairment charge | [1] | 900 | |||
Operating Segments [Member] | IPR&D [Member] | Biopharma [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Intangible asset impairment charge | 900 | 900 | |||
ViiV [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Dividend income | $ 44 | 43 | $ 196 | $ 184 | |
GSK Consumer Healthcare [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Gain on completion of Consumer Healthcare JV transaction | $ 8,100 | ||||
[1] | Reflects intangible assets written down to fair value in the first nine months of 2020. Fair value was determined using the income approach, specifically the multi-period excess earnings method, also known as the discounted cash flow method. We started with a forecast of all the expected net cash flows associated with the asset and then applied an asset-specific discount rate to arrive at a net present value amount. Some of the more significant estimates and assumptions inherent in this approach include: the amount and timing of the projected net cash flows, which includes the expected impact of competitive, legal and/or regulatory forces on the product; the discount rate, which seeks to reflect the various risks inherent in the projected cash flows; and the tax rate, which seeks to incorporate the geographic diversity of the projected cash flows. |
Segment, Geographic and Other_6
Segment, Geographic and Other Revenue Information - Revenues By Geographic Area (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | $ 12,131 | $ 12,680 | $ 35,961 | $ 39,062 | |
Percentage Change In Revenue | (4.00%) | (8.00%) | |||
U.S. [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | $ 5,716 | 5,850 | $ 16,770 | 18,360 | |
Percentage Change In Revenue | (2.00%) | (9.00%) | |||
Developed Europe [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | [1] | $ 2,087 | 2,135 | $ 6,095 | 6,450 |
Percentage Change In Revenue | [1] | (2.00%) | (5.00%) | ||
Developed Rest Of World [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | $ 1,634 | 1,585 | $ 4,642 | 4,758 | |
Percentage Change In Revenue | 3.00% | (2.00%) | |||
Emerging Markets [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | $ 2,694 | $ 3,110 | $ 8,453 | $ 9,493 | |
Percentage Change In Revenue | (13.00%) | (11.00%) | |||
[1] | Revenues denominated in euros were $1.7 billion in the third quarter of 2020 and $1.7 billion in the third quarter of 2019, and were $4.9 billion in the first nine months of 2020 and $5.2 billion in the first nine months of 2019. |
Segment, Geographic and Other_7
Segment, Geographic and Other Revenue Information - Revenues By Geographic Area - Footnotes (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | $ 12,131 | $ 12,680 | $ 35,961 | $ 39,062 | |
Developed Europe [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | [1] | 2,087 | 2,135 | 6,095 | 6,450 |
Euro Member Countries, Euro [Member] | Developed Europe [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | $ 1,700 | $ 1,700 | $ 4,900 | $ 5,200 | |
[1] | Revenues denominated in euros were $1.7 billion in the third quarter of 2020 and $1.7 billion in the third quarter of 2019, and were $4.9 billion in the first nine months of 2020 and $5.2 billion in the first nine months of 2019. |
Segment, Geographic and Other_8
Segment, Geographic and Other Revenue Information - Revenues By Products (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | ||
Revenue from External Customer [Line Items] | |||||
Revenues | $ 12,131 | $ 12,680 | $ 35,961 | $ 39,062 | |
Biopharma, Upjohn And Consumer Healthcare Segments [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 12,131 | 12,680 | 35,961 | 39,062 | |
Biopharma, Upjohn And Consumer Healthcare Segments [Member] | Total Alliance revenues [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 1,250 | 1,141 | 4,036 | 3,418 | |
Biopharma, Upjohn And Consumer Healthcare Segments [Member] | Total Biosimilars [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [1] | 424 | 236 | 1,001 | 632 |
Biopharma, Upjohn And Consumer Healthcare Segments [Member] | Total Sterile Injectable Pharmaceuticals [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [2] | 1,195 | 1,248 | 3,839 | 3,703 |
Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 10,215 | 9,952 | 30,017 | 28,429 | |
Internal Medicine [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [3] | 2,085 | 2,128 | 6,695 | 6,508 |
Internal Medicine [Member] | Biopharma [Member] | Eliquis [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [3] | 1,114 | 1,025 | 3,686 | 3,121 |
Internal Medicine [Member] | Biopharma [Member] | Chantix / Champix [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [3] | 223 | 276 | 728 | 825 |
Internal Medicine [Member] | Biopharma [Member] | Premarin family [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [3] | 168 | 182 | 471 | 542 |
Internal Medicine [Member] | Biopharma [Member] | BMP2 [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [3] | 70 | 66 | 197 | 212 |
Internal Medicine [Member] | Biopharma [Member] | Toviaz [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [3] | 59 | 61 | 183 | 186 |
Internal Medicine [Member] | Biopharma [Member] | All other Internal Medicine [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [3] | 451 | 517 | 1,429 | 1,621 |
Oncology [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 2,761 | 2,350 | 7,843 | 6,547 | |
Oncology [Member] | Biopharma [Member] | Ibrance [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 1,357 | 1,283 | 3,955 | 3,677 | |
Oncology [Member] | Biopharma [Member] | Xtandi alliance revenues [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 266 | 225 | 741 | 594 | |
Oncology [Member] | Biopharma [Member] | Sutent [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 202 | 224 | 616 | 704 | |
Oncology [Member] | Biopharma [Member] | Inlyta [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 195 | 139 | 559 | 316 | |
Oncology [Member] | Biopharma [Member] | Xalkori [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 122 | 130 | 409 | 385 | |
Oncology [Member] | Biopharma [Member] | Bosulif [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 111 | 90 | 324 | 267 | |
Oncology [Member] | Biopharma [Member] | Retacrit [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [1] | 102 | 64 | 278 | 147 |
Oncology [Member] | Biopharma [Member] | Lorbrena [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 55 | 32 | 142 | 77 | |
Oncology [Member] | Biopharma [Member] | Braftovi [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 42 | 18 | 116 | 18 | |
Oncology [Member] | Biopharma [Member] | Mektovi [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 34 | 19 | 103 | 19 | |
Oncology [Member] | Biopharma [Member] | Ruxience [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [1] | 59 | 0 | 78 | 0 |
Oncology [Member] | Biopharma [Member] | All other Oncology [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 217 | 125 | 522 | 342 | |
Hospital [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [3],[4] | 1,728 | 1,840 | 5,535 | 5,505 |
Hospital [Member] | Biopharma [Member] | Sulperazon [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [3],[4] | 143 | 163 | 432 | 505 |
Hospital [Member] | Biopharma [Member] | Medrol [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [3],[4] | 87 | 109 | 295 | 348 |
Hospital [Member] | Biopharma [Member] | Zithromax [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [3],[4] | 25 | 77 | 218 | 254 |
Hospital [Member] | Biopharma [Member] | Precedex [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [3],[4] | 55 | 36 | 211 | 116 |
Hospital [Member] | Biopharma [Member] | Vfend [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [3],[4] | 52 | 87 | 201 | 265 |
Hospital [Member] | Biopharma [Member] | Panzyga [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [3],[4] | 62 | 46 | 199 | 107 |
Hospital [Member] | Biopharma [Member] | Fragmin [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [3],[4] | 60 | 62 | 178 | 185 |
Hospital [Member] | Biopharma [Member] | Zyvox [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [3],[4] | 51 | 61 | 176 | 195 |
Hospital [Member] | Biopharma [Member] | Pfizer CentreOne [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [3],[4],[5] | 242 | 176 | 618 | 556 |
Hospital [Member] | Biopharma [Member] | All other Anti-infectives [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [3],[4] | 384 | 434 | 1,195 | 1,260 |
Hospital [Member] | Biopharma [Member] | All other Hospital [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [3],[4] | 568 | 589 | 1,813 | 1,713 |
Vaccines [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 1,717 | 1,808 | 4,574 | 4,795 | |
Vaccines [Member] | Biopharma [Member] | Prevnar 13/Prevenar 13 [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 1,534 | 1,603 | 4,100 | 4,268 | |
Vaccines [Member] | Biopharma [Member] | Nimenrix [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 50 | 52 | 180 | 159 | |
Vaccines [Member] | Biopharma [Member] | FSME/IMMUN-TicoVac [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 77 | 64 | 170 | 197 | |
Vaccines [Member] | Biopharma [Member] | All other Vaccines [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 56 | 89 | 124 | 171 | |
Inflammation and Immunology (I&I) [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 1,173 | 1,226 | 3,299 | 3,482 | |
Inflammation and Immunology (I&I) [Member] | Biopharma [Member] | Xeljanz [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 654 | 599 | 1,741 | 1,634 | |
Inflammation and Immunology (I&I) [Member] | Biopharma [Member] | Enbrel (Outside the U.S. and Canada) [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 321 | 415 | 1,005 | 1,285 | |
Inflammation and Immunology (I&I) [Member] | Biopharma [Member] | Inflectra/Remsima [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [1] | 162 | 155 | 471 | 446 |
Inflammation and Immunology (I&I) [Member] | Biopharma [Member] | All other I & I [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 35 | 58 | 83 | 116 | |
Rare Disease [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 752 | 601 | 2,071 | 1,592 | |
Rare Disease [Member] | Biopharma [Member] | Vyndaqel/Vyndamax [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 351 | 156 | 859 | 259 | |
Rare Disease [Member] | Biopharma [Member] | BeneFIX [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 107 | 125 | 337 | 372 | |
Rare Disease [Member] | Biopharma [Member] | Genotropin [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 107 | 124 | 316 | 357 | |
Rare Disease [Member] | Biopharma [Member] | ReFacto AF/Xyntha [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 92 | 104 | 272 | 319 | |
Rare Disease [Member] | Biopharma [Member] | Somavert [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 67 | 64 | 198 | 192 | |
Rare Disease [Member] | Biopharma [Member] | All other Rare Disease [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 27 | 28 | 89 | 94 | |
Upjohn [Member] | Upjohn [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [3] | 1,916 | 2,351 | 5,944 | 8,535 |
Upjohn [Member] | Upjohn [Member] | Lipitor [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [3] | 356 | 476 | 1,191 | 1,506 |
Upjohn [Member] | Upjohn [Member] | Lyrica [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [3] | 352 | 527 | 1,058 | 2,888 |
Upjohn [Member] | Upjohn [Member] | Norvasc [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [3] | 183 | 219 | 601 | 735 |
Upjohn [Member] | Upjohn [Member] | Celebrex [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [3] | 133 | 179 | 428 | 526 |
Upjohn [Member] | Upjohn [Member] | Viagra [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [3] | 121 | 120 | 342 | 379 |
Upjohn [Member] | Upjohn [Member] | Effexor [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [3] | 80 | 80 | 242 | 242 |
Upjohn [Member] | Upjohn [Member] | Zoloft [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [3] | 76 | 74 | 233 | 217 |
Upjohn [Member] | Upjohn [Member] | EpiPen [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [3] | 58 | 74 | 194 | 197 |
Upjohn [Member] | Upjohn [Member] | Xalatan/Xalacom [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [3] | 62 | 68 | 188 | 201 |
Upjohn [Member] | Upjohn [Member] | Xanax [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [3] | 55 | 50 | 149 | 147 |
Upjohn [Member] | Upjohn [Member] | All other Upjohn [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [3] | 442 | 485 | 1,317 | 1,496 |
Consumer Healthcare [Member] | Consumer Healthcare [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [6] | $ 0 | $ 377 | $ 0 | $ 2,098 |
[1] | Biosimilars are highly similar versions of approved and authorized biological medicines and primarily include revenues from Inflectra/Remsima, Retacrit and Ruxience. | ||||
[2] | Total Sterile Injectable Pharmaceuticals represents the total of all branded and generic injectable products in the Hospital business, including anti-infective sterile injectable pharmaceuticals. | ||||
[3] | Beginning in 2020, Upjohn began managing our Meridian subsidiary, the manufacturer of EpiPen and other auto-injector products, and a pre-existing strategic collaboration between Pfizer and Mylan for generic drugs in Japan (Mylan-Japan). As a result, revenues associated with our Meridian subsidiary, except for product revenues for EpiPen sold in Canada, and Mylan-Japan, are reported in our Upjohn business beginning in the first quarter of 2020. We have reclassified revenues associated with our Meridian subsidiary and Mylan-Japan from the Hospital and Internal Medicine categories to the Upjohn business to conform 2019 product revenues to the current presentation. | ||||
[4] | Hospital is a business unit that commercializes our global portfolio of sterile injectable and anti-infective medicines. Hospital also includes Pfizer CentreOne (d) . All other Hospital primarily includes revenues from legacy Sterile Injectables Pharmaceuticals (SIP) products (that are not anti-infective products) and, to a much lesser extent, solid oral dose products (that are not anti-infective products). SIP anti-infective products that are not individually listed above are recorded in “All other Anti-infectives”. | ||||
[5] | Pfizer CentreOne includes revenues from our contract manufacturing and active pharmaceutical ingredient sales operation, including sterile injectables contract manufacturing, and revenues related to our manufacturing and supply agreements. | ||||
[6] | On July 31, 2019, Pfizer’s Consumer Healthcare business, an over-the-counter medicines business, was combined with GSK’s consumer healthcare business to form a new consumer healthcare joint venture. See Note 2B . |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event [Member] - Viatris [Member] - Forecast [Member] | Nov. 16, 2020 |
Subsequent Event [Line Items] | |
Ownership percentage, parent | 57.00% |
Mylan [Member] | |
Subsequent Event [Line Items] | |
Ownership percentage, noncontrolling owners | 43.00% |