Cover Page
Cover Page - shares | 9 Months Ended | |
Oct. 01, 2023 | Nov. 03, 2023 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 01, 2023 | |
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 | 66 Hudson Boulevard East | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10001-2192 | |
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 | 5,646,413,292 | |
Entity Central Index Key | 0000078003 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
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, $0.05 par value | |
Trading Symbol | PFE | |
Security Exchange Name | NYSE | |
1.000% Notes due 2027 [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.000% Notes due 2027 | |
Trading Symbol | PFE27 | |
Security Exchange Name | NYSE |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 01, 2023 | Oct. 02, 2022 | Oct. 01, 2023 | Oct. 02, 2022 | ||
Income Statement [Abstract] | |||||
Revenues | $ 13,232 | $ 22,638 | $ 44,247 | $ 76,040 | |
Costs and expenses: | |||||
Cost of sales | [1],[2] | 9,269 | 6,063 | 17,391 | 24,696 |
Selling, informational and administrative expenses | [2] | 3,281 | 3,391 | 10,196 | 9,032 |
Research and development expenses | [2] | 2,711 | 2,696 | 7,864 | 7,813 |
Acquired in-process research and development expenses | 67 | 524 | 122 | 880 | |
Amortization of intangible assets | 1,179 | 822 | 3,466 | 2,478 | |
Restructuring charges and certain acquisition-related costs | 155 | 199 | 377 | 580 | |
Other (income)/deductions––net | (79) | (59) | (356) | 1,063 | |
Income/(loss) from continuing operations before provision/(benefit) for taxes on income/(loss) | [3] | (3,352) | 9,001 | 5,187 | 29,498 |
Provision/(benefit) for taxes on income/(loss) | (964) | 356 | (320) | 3,098 | |
Income/(loss) from continuing operations | (2,388) | 8,645 | 5,507 | 26,400 | |
Discontinued operations––net of tax | 12 | (21) | 11 | 4 | |
Net income/(loss) before allocation to noncontrolling interests | (2,376) | 8,623 | 5,518 | 26,404 | |
Less: Net income attributable to noncontrolling interests | 6 | 15 | 30 | 27 | |
Net income/(loss) attributable to Pfizer Inc. common shareholders | $ (2,382) | $ 8,608 | $ 5,488 | $ 26,378 | |
Earnings/(loss) per common share––basic: | |||||
Income/(loss) from continuing operations attributable to Pfizer Inc. common shareholders (in dollars per share) | $ (0.42) | $ 1.54 | $ 0.97 | $ 4.70 | |
Discontinued operations––net of tax (in dollars per share) | 0 | 0 | 0 | 0 | |
Net income/(loss) attributable to Pfizer Inc. common shareholders (in dollars per share) | (0.42) | 1.54 | 0.97 | 4.71 | |
Earnings/(loss) per common share––diluted: | |||||
Income/(loss) from continuing operations attributable to Pfizer Inc. common shareholders (in dollars per share) | (0.42) | 1.51 | 0.96 | 4.60 | |
Discontinued operations––net of tax (in dollars per share) | 0 | 0 | 0 | 0 | |
Net income/(loss) attributable to Pfizer Inc. common shareholders (in dollars per share) | $ (0.42) | $ 1.51 | $ 0.96 | $ 4.60 | |
Weighted-average shares––basic | 5,646 | 5,607 | 5,642 | 5,606 | |
Weighted-average shares––diluted | 5,646 | 5,718 | 5,714 | 5,729 | |
[1] See Notes 8 and 13 . I ncome/(loss) from continuing operations before provision/(benefit) for taxes on income/(loss). Biopharma’s earnings include dividend income from our investment in ViiV of $30 million in the third quarter of 2023 and $112 million in the third quarter of 2022, and $213 million in the first nine months of 2023 and $237 million in the first nine months of 2022. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 01, 2023 | Oct. 02, 2022 | Oct. 01, 2023 | Oct. 02, 2022 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income/(loss) before allocation to noncontrolling interests | $ (2,376) | $ 8,623 | $ 5,518 | $ 26,404 | |
Foreign currency translation adjustments, net | (109) | (918) | 234 | (2,549) | |
Unrealized holding gains/(losses) on derivative financial instruments, net | 408 | 589 | 519 | 1,443 | |
Reclassification adjustments for (gains)/losses included in net income/(loss) | [1] | (67) | (615) | 73 | (972) |
Other comprehensive income (loss), cash flow hedge, gain (loss), before tax, total | 341 | (26) | 593 | 471 | |
Unrealized holding gains/(losses) on available-for-sale securities, net | (83) | (777) | 30 | (1,397) | |
Reclassification adjustments for (gains)/losses included in net income/(loss) | [2] | 51 | 606 | (442) | 1,094 |
Other comprehensive income (loss), available-for-sale securities, before tax, total | (32) | (171) | (411) | (303) | |
Reclassification adjustments related to amortization of prior service costs and other, net | (29) | (31) | (88) | (99) | |
Reclassification adjustments related to curtailments of prior service costs and other, net | (1) | 2 | (14) | (8) | |
Defined benefit plan, amounts recognized in other comprehensive income (loss), net prior service costs and other, before tax | (30) | (29) | (102) | (107) | |
Other comprehensive income/(loss), before tax | 170 | (1,144) | 313 | (2,488) | |
Tax provision/(benefit) on other comprehensive income/(loss) | 36 | (33) | (17) | (149) | |
Other comprehensive income/(loss) before allocation to noncontrolling interests | 134 | (1,111) | 330 | (2,339) | |
Comprehensive income/(loss) before allocation to noncontrolling interests | (2,242) | 7,512 | 5,848 | 24,065 | |
Less: Comprehensive income/(loss) attributable to noncontrolling interests | 4 | 10 | 23 | 16 | |
Comprehensive income/(loss) attributable to Pfizer Inc. | $ (2,247) | $ 7,503 | $ 5,826 | $ 24,049 | |
[1] Reclassified into Other (income)/deductions—net and Cost of sales. See Note 7E . Reclassified into Other (income)/deductions—net. |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Oct. 01, 2023 | Dec. 31, 2022 | |
Assets | |||
Cash and cash equivalents | $ 3,148 | $ 416 | |
Short-term investments | 41,033 | 22,316 | |
Trade accounts receivable, less allowance for doubtful accounts: 2023—$465; 2022—$449 | 11,086 | 10,952 | |
Inventories | [1] | 10,204 | 8,981 |
Current tax assets | 3,917 | 3,577 | |
Other current assets | 4,624 | 5,017 | |
Total current assets | 74,012 | 51,259 | |
Equity-method investments | 11,025 | 11,033 | |
Long-term investments | 3,214 | 4,036 | |
Property, plant and equipment, less accumulated depreciation: 2023—$15,779; 2022—$15,174 | 17,862 | 16,274 | |
Identifiable intangible assets | [2] | 40,224 | 43,370 |
Goodwill | 51,527 | 51,375 | |
Noncurrent deferred tax assets and other noncurrent tax assets | 8,350 | 6,693 | |
Other noncurrent assets | 8,808 | 13,163 | |
Total assets | 215,021 | 197,205 | |
Liabilities and Equity | |||
Short-term borrowings, including current portion of long-term debt: 2023—$2,260; 2022—$2,560 | 2,548 | 2,945 | |
Trade accounts payable | 5,338 | 6,809 | |
Dividends payable | 0 | 2,303 | |
Income taxes payable | 1,898 | 1,587 | |
Accrued compensation and related items | 2,372 | 3,407 | |
Deferred revenues | 2,204 | 2,520 | |
Other current liabilities | 16,776 | 22,568 | |
Total current liabilities | 31,136 | 42,138 | |
Long-term debt | 61,048 | 32,884 | |
Pension and postretirement benefit obligations | 2,166 | 2,250 | |
Noncurrent deferred tax liabilities | 1,125 | 1,023 | |
Other taxes payable | 8,099 | 9,812 | |
Other noncurrent liabilities | 14,242 | 13,180 | |
Total liabilities | 117,817 | 101,288 | |
Commitments and Contingencies | |||
Common stock | 478 | 476 | |
Additional paid-in capital | 92,496 | 91,802 | |
Treasury stock | (114,485) | (113,969) | |
Retained earnings | 126,411 | 125,656 | |
Accumulated other comprehensive loss | (7,966) | (8,304) | |
Total Pfizer Inc. shareholders’ equity | 96,934 | 95,661 | |
Equity attributable to noncontrolling interests | 270 | 256 | |
Total equity | 97,204 | 95,916 | |
Total liabilities and equity | $ 215,021 | $ 197,205 | |
[1]The increase from December 31, 2022 of $1.2 billion reflects higher inventory levels for certain products due to supply recovery, new product launches and changes in net market demand, partially offset by $0.7 billion in inventory write-offs for Paxlovid and Comirnaty.[2] The decrease is primarily due to amortization expense of $3.5 billion and impairments of $248 million (see Note 4 ), partially offset by additions of $681 million mostly related to milestone payments for the approvals in the U.S. for Zavzpret nasal spray and Ngenla. |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($) $ in Millions | Oct. 01, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 465 | $ 449 |
Property, plant and equipment, accumulated depreciation | 15,779 | 15,174 |
Current portion of long-term debt | $ 2,260 | $ 2,560 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED) - USD ($) shares in Millions, $ in Millions | Total | Shareholders' Equity [Member] | Common Stock [Member] | Add'l Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Accum. Other Comp. Loss [Member] | Noncontrolling Interests [Member] | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning balance (in shares) | 9,471 | ||||||||
Beginning balance at Dec. 31, 2021 | $ 77,462 | $ 77,201 | $ 473 | $ 90,591 | $ (111,361) | $ 103,394 | $ (5,897) | $ 262 | |
Beginning balance (in shares) at Dec. 31, 2021 | (3,851) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income/(loss) | 26,404 | 26,378 | 26,378 | 27 | |||||
Other comprehensive income/(loss), net of tax | (2,339) | (2,328) | (2,328) | (11) | |||||
Cash dividends declared, per share | |||||||||
Common stock | (6,734) | (6,734) | (6,734) | ||||||
Noncontrolling interests | (7) | (7) | |||||||
Share-based payment transactions (in shares) | 45 | (12) | |||||||
Share-based payment transactions | 108 | 108 | $ 2 | 760 | $ (584) | (71) | |||
Purchases of common stock (in shares) | (39) | ||||||||
Purchases of common stock | (2,000) | (2,000) | $ (2,000) | ||||||
Other | (4) | 7 | 7 | 0 | (11) | ||||
Ending balance (in shares) at Oct. 02, 2022 | 9,515 | ||||||||
Ending balance at Oct. 02, 2022 | 92,891 | 92,631 | $ 476 | 91,359 | $ (113,945) | 122,967 | (8,225) | 259 | |
Ending balance (in shares) at Oct. 02, 2022 | (3,903) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning balance (in shares) | 9,496 | ||||||||
Beginning balance at Jul. 03, 2022 | 87,469 | 87,208 | $ 476 | 91,183 | $ (113,939) | 116,608 | (7,119) | 261 | |
Beginning balance (in shares) at Jul. 03, 2022 | (3,903) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income/(loss) | 8,623 | 8,608 | 8,608 | 15 | |||||
Other comprehensive income/(loss), net of tax | (1,111) | (1,106) | (1,106) | (5) | |||||
Cash dividends declared, per share | |||||||||
Common stock | (2,245) | (2,245) | (2,245) | ||||||
Noncontrolling interests | (7) | (7) | |||||||
Share-based payment transactions (in shares) | 20 | 0 | |||||||
Share-based payment transactions | 161 | 161 | $ 0 | 172 | $ (6) | (5) | |||
Other | 0 | 4 | 4 | (4) | |||||
Ending balance (in shares) at Oct. 02, 2022 | 9,515 | ||||||||
Ending balance at Oct. 02, 2022 | 92,891 | 92,631 | $ 476 | 91,359 | $ (113,945) | 122,967 | (8,225) | 259 | |
Ending balance (in shares) at Oct. 02, 2022 | (3,903) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning balance (in shares) | 9,515 | ||||||||
Beginning balance (in shares) | 9,519 | ||||||||
Beginning balance at Dec. 31, 2022 | 95,916 | 95,661 | $ 476 | 91,802 | $ (113,969) | 125,656 | (8,304) | 256 | |
Beginning balance (in shares) at Dec. 31, 2022 | (3,903) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income/(loss) | 5,518 | 5,488 | 5,488 | 30 | |||||
Other comprehensive income/(loss), net of tax | 330 | 338 | 338 | [1] | (8) | ||||
Cash dividends declared, per share | |||||||||
Common stock | (4,629) | (4,629) | (4,629) | ||||||
Noncontrolling interests | (8) | 0 | (8) | ||||||
Share-based payment transactions (in shares) | 43 | (12) | |||||||
Share-based payment transactions | 77 | 77 | $ 2 | 694 | $ (516) | (104) | |||
Other | 0 | 0 | 0 | 0 | 0 | ||||
Ending balance (in shares) at Oct. 01, 2023 | 9,562 | ||||||||
Ending balance at Oct. 01, 2023 | 97,204 | 96,934 | $ 478 | 92,496 | $ (114,485) | 126,411 | (7,966) | 270 | |
Ending balance (in shares) at Oct. 01, 2023 | (3,916) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning balance (in shares) | 9,561 | ||||||||
Beginning balance at Jul. 02, 2023 | 99,293 | 99,019 | $ 478 | 92,329 | $ (114,482) | 128,796 | (8,102) | 274 | |
Beginning balance (in shares) at Jul. 02, 2023 | (3,916) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income/(loss) | (2,376) | (2,382) | (2,382) | 6 | |||||
Other comprehensive income/(loss), net of tax | 134 | 135 | 135 | (2) | |||||
Cash dividends declared, per share | |||||||||
Common stock | 0 | 0 | 0 | ||||||
Noncontrolling interests | (8) | 0 | (8) | ||||||
Share-based payment transactions (in shares) | 1 | ||||||||
Share-based payment transactions | 161 | 161 | 167 | $ (4) | (2) | ||||
Other | 0 | 0 | 0 | 0 | |||||
Ending balance (in shares) at Oct. 01, 2023 | 9,562 | ||||||||
Ending balance at Oct. 01, 2023 | $ 97,204 | $ 96,934 | $ 478 | $ 92,496 | $ (114,485) | $ 126,411 | $ (7,966) | $ 270 | |
Ending balance (in shares) at Oct. 01, 2023 | (3,916) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning balance (in shares) | 9,562 | ||||||||
[1] Foreign currency translation adjustments include net losses related to our equity-method investment in Haleon (see Note 2C ) and the impact of our net investment hedging program. |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED) (PARENTHETICAL) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2023 | Oct. 02, 2022 | Oct. 01, 2023 | Oct. 02, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends declared per share (in dollars per share) | $ 0 | $ 0.40 | $ 0.82 | $ 1.20 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 9 Months Ended | ||
Oct. 01, 2023 | Oct. 02, 2022 | ||
Operating Activities | |||
Net income/(loss) before allocation to noncontrolling interests | $ 5,518 | $ 26,404 | |
Discontinued operations––net of tax | 11 | 4 | |
Net income from continuing operations before allocation to noncontrolling interests | 5,507 | 26,400 | |
Adjustments to reconcile net income before allocation to noncontrolling interests to net cash provided by/(used in) operating activities: | |||
Depreciation and amortization | 4,620 | 3,545 | |
Asset write-offs and impairments | 499 | 287 | |
Deferred taxes | (1,584) | (3,399) | |
Share-based compensation expense | 404 | 508 | |
Benefit plan contributions in excess of expense/income | (467) | (532) | |
Inventory write-offs and related charges associated with COVID-19 products | [1] | 5,847 | 476 |
Other adjustments, net | (744) | 1,481 | |
Other changes in assets and liabilities, net of acquisitions and divestitures | (10,622) | (8,081) | |
Net cash provided by/(used in) operating activities | 3,460 | 20,685 | |
Investing Activities | |||
Purchases of property, plant and equipment | (2,863) | (2,235) | |
Purchases of short-term investments | (30,138) | (29,701) | |
Proceeds from redemptions/sales of short-term investments | 18,018 | 35,087 | |
Net (purchases of)/proceeds from redemptions/sales of short-term investments with original maturities of three months or less | (6,102) | (10,877) | |
Purchases of long-term investments | (166) | (1,627) | |
Proceeds from redemptions/sales of long-term investments | 189 | 446 | |
Acquisitions of businesses, net of cash acquired | (25) | (6,225) | |
Dividend received from the Consumer Healthcare JV | 0 | 3,960 | |
Other investing activities, net | (193) | (200) | |
Net cash provided by/(used in) investing activities | (21,282) | (11,373) | |
Financing Activities | |||
Proceeds from short-term borrowings | 14 | 3,887 | |
Payments on short-term borrowings | 0 | (3,887) | |
Net (payments on)/proceeds from short-term borrowings with original maturities of three months or less | (106) | 870 | |
Proceeds from issuance of long-term debt | 30,831 | 0 | |
Payments on long-term debt | (2,569) | (1,609) | |
Purchases of common stock | 0 | (2,000) | |
Cash dividends paid | (6,932) | (6,738) | |
Other financing activities, net | (613) | (342) | |
Net cash provided by/(used in) financing activities | 20,624 | (9,819) | |
Effect of exchange-rate changes on cash and cash equivalents and restricted cash and cash equivalents | (39) | (139) | |
Net increase/(decrease) in cash and cash equivalents and restricted cash and cash equivalents | 2,764 | (646) | |
Cash and cash equivalents and restricted cash and cash equivalents, at beginning of period | 468 | 1,983 | |
Cash and cash equivalents and restricted cash and cash equivalents, at end of period | 3,233 | 1,338 | |
Cash paid during the period for: | |||
Income taxes | 2,907 | 4,919 | |
Interest paid | 1,153 | 1,121 | |
Interest rate hedges | $ 98 | $ 28 | |
[1]See Notes 8 and 13 . |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Oct. 01, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies A. Basis of Presentation We prepared these condensed consolidated financial statements in conformity with U.S. GAAP, consistent in all material respects with those applied in our 2022 Form 10-K. As permitted under the SEC requirements for interim reporting, certain footnotes or other financial information have been condensed or omitted. These 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 Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in our 2022 Form 10-K . 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. Pfizer’s fiscal quarter-end for subsidiaries operating outside the U.S. is as of and for the three and nine months ended August 27, 2023 and August 28, 2022, and for U.S. subsidiaries is as of and for the three and nine months ended October 1, 2023 and October 2, 2022. We manage our commercial operations through two operating segments, each led by a single manager: Biopharma and Business Innovation. Biopharma is the only reportable segment. See Note 13A below and Note 17A in our 2022 Form 10-K . Business development activities impacted financial results in the periods presented. In March 2023, we and Seagen announced that the companies entered into an agreement under which we will acquire Seagen, a global biotechnology company that discovers, develops and commercializes transformative cancer medicines, for $229 in cash per Seagen share for a total enterprise value of approximately $43 billion. We expect to finance the transaction substantially through $31 billion of long-term debt issued in May 2023 (see Note 7D ), and the balance from a combination of short-term financing and existing cash. The transaction was approved by Seagen’s shareholders in May 2023. In October 2023, we received unconditional antitrust clearance from the EC on the proposed acquisition. The transaction is expected to close in late 2023 or early 2024, and remains subject to customary closing conditions, including receipt of required regulatory approvals. See Note 2 below, as well as Notes 1A and 2 in our 2022 Form 10-K. We have made certain reclassification adjustments to conform prior-period amounts to the current presentation for segment reporting. B. New Accounting Standards Adopted in 2023 On January 1, 2023, we adopted a new accounting standard for supplier finance programs which requires increased disclosures in the notes to our financial statements. See Note 8C . In the second quarter of 2023, we adopted new accounting standards on reference rate reform that provide temporary optional expedients and exceptions to the guidance for contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate that were discontinued after June 30, 2023. We applied certain of the optional expedients related to hedge accounting relationships. The main purpose of the expedients is to allow hedge accounting to continue uninterrupted and make it easier to apply the requirements to maintain hedge accounting during the transition period through December 31, 2024. C. Revenues and Trade Accounts Receivable Customers–– Our prescription biopharmaceutical products, with the exception of Paxlovid, are sold principally to wholesalers, but we also sell directly to retailers, hospitals, clinics, government agencies and pharmacies. We principally sell Paxlovid to government agencies and distributors. In the U.S., we primarily sell our vaccines directly to the federal government (including the CDC), wholesalers, individual provider offices, retail pharmacies and integrated delivery systems. Outside the U.S., we primarily sell our vaccines to government and non-government institutions. Deductions from Revenues–– Our accruals for Medicare, Medicaid and related state program and performance-based contract rebates, chargebacks, sales allowances and sales returns and cash discounts are as follows: (MILLIONS) October 1, December 31, 2022 Reserve against Trade accounts receivable, less allowance for doubtful accounts $ 1,599 $ 1,200 Other current liabilities : Accrued rebates 5,083 4,479 Other accruals 436 430 Other noncurrent liabilities 640 612 Total accrued rebates and other sales-related accruals $ 7,757 $ 6,722 Trade Accounts Receivable–– Trade accounts receivable are stated at their net realizable value. The allowance for credit losses reflects our 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. When management becomes aware of certain customer-specific factors that impact credit risk, specific allowances for these known troubled accounts are recorded. During the three and nine months ended October 1, 2023 and October 2, 2022, additions to the allowance for credit losses, write-offs and recoveries of customer receivables were not material to our condensed consolidated financial statements. For additional information on our trade accounts receivable, see Note 1G in our 2022 Form 10-K. |
Acquisitions, Divestitures, Equ
Acquisitions, Divestitures, Equity-Method Investment and Research and Development Arrangement | 9 Months Ended |
Oct. 01, 2023 | |
Business Combinations, Disposal Groups, Including Discontinued Operations, Equity Method Investments And Research And Development Arrangement [Abstract] | |
Acquisitions, Divestitures, Equity-Method Investment and Research and Development Arrangement | Acquisitions, Divestitures, Equity-Method Investment and Research and Development Arrangement A. Acquisitions GBT–– On October 5, 2022, we acquired GBT, a biopharmaceutical company dedicated to the discovery, development and delivery of life-changing treatments for underserved patient communities, starting with sickle cell disease. The total fair value of the consideration transferred was $5.7 billion ($5.2 billion, net of cash acquired). In connection with this business combination, we provisionally recorded: (i) $4.4 billion in Identifiable intangible assets , consisting of $3.0 billion of IPR&D and $1.4 billion of developed technology rights with a useful life of six years, (ii) $1.0 billion of Goodwill, (iii) $672 million of inventories to be sold over approximately three years, (iv) $523 million of net deferred tax liabilities and (v) $331 million of assumed long-term debt that was paid in full in the fourth quarter of 2022. The allocation of the consideration transferred to the assets acquired and liabilities assumed has not yet been finalized. Biohaven–– On October 3, 2022, we acquired Biohaven, the maker of Nurtec ODT/Vydura (rimegepant), an innovative therapy approved for both acute treatment of migraine and prevention of episodic migraine in adults. The total fair value of the consideration transferred was $11.8 billion, which includes the fair value of Pfizer’s previous investment in Biohaven on the acquisition date of approximately $300 million. In connection with this business combination, we provisionally recorded: (i) $12.1 billion in Identifiable intangible assets , consisting of $11.6 billion of developed technology rights with a useful life of 11 years and $450 million of IPR&D, (ii) $828 million of Goodwill , (iii) $813 million of inventories to be sold over approximately two years, (iv) $398 million of trade accounts receivable, (v) $1.4 billion of assumed long-term debt that was paid in full in the fourth quarter of 2022, (vi) $550 million of net deferred tax liabilities and (vii) $526 million of Other current liabilities . The allocation of the consideration transferred to the assets acquired and liabilities assumed has not yet been finalized. Arena–– On March 11, 2022, we acquired Arena, a clinical stage company with development-stage therapeutic candidates in gastroenterology, dermatology and cardiology. The total fair value of the consideration transferred was $6.6 billion ($6.2 billion, net of cash acquired). The final allocation of the consideration transferred to the assets acquired and the liabilities assumed was completed in the first quarter of 2023. In connection with this business combination, we recorded: (i) $5.5 billion in Identifiable intangible assets , consisting of $5.0 billion of IPR&D and $460 million of indefinite-lived licensing agreements and other, (ii) $1.0 billion of Goodwill and (iii) $490 million of net deferred tax liabilities. B. Divestitures Divestiture of Early-Stage Rare Disease Gene Therapy Portfolio– –On September 19, 2023, we completed an agreement with Alexion, under which Alexion purchased and licensed the assets of our early-stage rare disease gene therapy portfolio. This agreement is consistent with our previously announced strategy to pivot from viral capsid-based gene therapy approaches to harnessing new platform technologies that we believe can have a transformative impact on patients, such as mRNA or in vivo gene editing. Under the terms of the agreement, Alexion will pay us total consideration of up to $1 billion, consisting of an upfront payment of $300 million paid at closing and future contingent milestone payments, plus tiered royalties based on annual net sales of the assets. In connection with the closing of the transaction, Pfizer recognized a $222 million pre-tax gain in Other (income)/deductions––net (see Note 4 ). Discontinued operations––net of tax in the periods presented relate to post-close adjustments for previously divested businesses that were classified as discontinued operations. In the three and nine months ended October 1, 2023 and October 2, 2022, amounts recorded under interim agreements, including TSAs and MSAs, associated with these disposals were not material. Under agreements related to the 2020 spin-off and the combination of the Upjohn Business with Mylan to form Viatris, net amounts due to Viatris were $31 million as of October 1, 2023 and $94 million as of December 31, 2022. The cash flows associated with the agreements are included in Net cash provided by/(used in) operating activities . For information about the nature of these agreements, see Note 2B in our 2022 Form 10-K. C. Equity-Method Investment Haleon / Consumer Healthcare JV–– On July 18, 2022, GSK completed a demerger of the Consumer Healthcare JV which became Haleon, an independent, publicly traded company listed on the London Stock Exchange that holds the joint historical consumer healthcare business of GSK and Pfizer following the demerger. We continue to own 32% of the ordinary shares of Haleon after the demerger. The carrying value of our investment in Haleon was $10.8 billion as of both October 1, 2023 and December 31, 2022, and is reported in Equity-method investments . The fair value of our investment in Haleon as of October 1, 2023, based on quoted market prices of Haleon stock, was $12.3 billion. Haleon/the Consumer Healthcare JV 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 value of our investment was effectively unchanged during the first nine months of 2023, primarily due to our share of Haleon’s earnings of $341 million, partially offset by $183 million in pre-tax foreign currency translation adjustments (see Note 6 ) and $154 million in dividends. We record our share of earnings from Haleon/the Consumer Healthcare JV on a quarterly basis on a one-quarter lag in Other (income)/deductions––net . Our total share of Haleon’s earnings generated in the second quarter of 2023, which we recorded in our operating results in the third quarter of 2023, was $122 million. Our total share of Haleon’s earnings generated in the fourth quarter of 2022 and first six months of 2023, which we recorded in our operating results in the first nine months of 2023, was $341 million. Our total share of the JV’s earnings generated in the second quarter of 2022, which we recorded in our operating results in the third quarter of 2022, was $67 million. Our total share of the JV’s earnings generated in the fourth quarter of 2021 and first six months of 2022, which we recorded in our operating results in the first nine months of 2022, was $402 million. In the third quarter and first nine months of 2022, our equity-method income included in Other (income)/deductions––net also included charges of $118 million and $119 million, respectively, primarily for adjustments to our equity-method basis differences related to the separation of Haleon/the Consumer Healthcare JV from GSK. The total amortization and adjustment of basis differences resulting from the excess of the initial fair value of our investment over the underlying equity in the carrying value of the net assets of Haleon/the Consumer Healthcare JV was not material to our results of operations in the third quarter and first nine months of 2023. See Note 4 . Summarized financial information for our equity-method investee, Haleon/the Consumer Healthcare JV, for the three and nine months ending June 30, 2023, the most recent period available, and for the three and nine months ending June 30, 2022, is as follows: Three Months Ended Nine Months Ended (MILLIONS) June 30, June 30, June 30, June 30, Net sales $ 3,490 $ 3,218 $ 10,379 $ 10,164 Cost of sales (1,323) (1,196) (4,211) (3,830) Gross profit $ 2,167 $ 2,022 $ 6,168 $ 6,334 Income from continuing operations 403 226 1,133 1,303 Net income 403 226 1,133 1,303 Income attributable to shareholders 382 210 1,066 1,256 D. Research and Development Arrangement Research and Development Funding Arrangement with Blackstone–– In April 2023, we entered into an arrangement with Blackstone under which we will receive up to a total of $550 million in 2023 through 2026 to co-fund our quarterly development costs for specified treatments. As there is substantive transfer of risk to the financial partner, the development funding is recognized by us as an obligation to perform contractual services. We are recognizing the funding as a reduction of Research and development expenses using an attribution model over the period of the related expenses. The reduction to Research and development expenses for the third quarter and first nine months of 2023 was $43 million and $88 million, respectively. If successful, upon regulatory approval in the U.S. or certain major markets in the EU for the indications based on the applicable clinical trials, Blackstone will be eligible to receive approval-based fixed milestone payments of up to $468 million contingent upon the successful results of the clinical trials. Fixed milestone payments due upon approval will be recorded as intangible assets and amortized to Amortization of intangible assets over the shorter of the term of the agreement or estimated commercial life of the product. Following potential regulatory approval, Blackstone will be eligible to receive a combination of fixed milestone payments of up to $550 million in total based on achievement of certain levels of cumulative applicable net sales, as well as royalties based on a mid-to-high single digit percentage of the applicable net sales. Fixed sales-based milestone payments will be recorded as intangible assets and amortized to Amortization of intangible assets over the shorter of the term of the agreement or estimated commercial life of the product, and royalties on net sales will be recorded as Cost of sales when incurred. |
Restructuring Charges and Other
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives | 9 Months Ended |
Oct. 01, 2023 | |
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 A. Transforming to a More Focused Company Program In 2019, we announced that we would be incurring costs associated with our Transforming to a More Focused Company Program, a multi-year effort to ensure our cost base aligns appropriately with our operating structure following Pfizer’s transformation into a more focused, innovative science-based global biopharmaceutical business. This program includes activities to (i) restructure our corporate enabling functions to appropriately support our operating structure; (ii) transform our commercial go-to-market model; and (iii) optimize our manufacturing network and R&D operations. The activities associated with transforming our commercial go-to-market model are substantially complete. Activities associated with restructuring our corporate enabling functions and optimizing our manufacturing network and R&D operations are ongoing and are expected to be substantially completed by the end of 2023. The costs to restructure our corporate enabling functions, and to optimize our R&D operations and reduce cycle times, as well as to further prioritize our internal R&D portfolio, primarily include severance and implementation costs. The costs to optimize our manufacturing network largely include severance, implementation costs, product transfer costs, site exit costs, and accelerated depreciation. From the start of this program in the fourth quarter of 2019 through October 1, 2023, we incurred costs of $3.9 billion, of which $1.5 billion ($1.1 billion of restructuring charges) is associated with Biopharma. We have incurred approximately 90% of total expected costs to date, and we expect the remaining costs to be substantially incurred through 2023. B. Key Activities The following summarizes costs and credits for acquisitions and cost-reduction/productivity initiatives: Three Months Ended Nine Months Ended (MILLIONS) October 1, October 2, October 1, October 2, Restructuring charges/(credits): Employee terminations $ 16 $ 158 $ 77 $ 293 Asset impairments 40 17 45 44 Exit costs/(credits) 15 2 44 31 Restructuring charges/(credits) (a) 71 177 165 368 Transaction costs (b) 5 — 14 42 Integration/pre-integration costs and other (c) 78 22 198 170 Restructuring charges and certain acquisition-related costs 155 199 377 580 Net periodic benefit costs/(credits) recorded in Other (income)/deductions––net — — (7) (5) Additional depreciation––asset restructuring recorded in our condensed consolidated statements of operations, mainly in Cost of sales (d) 5 7 28 22 Implementation costs recorded in our condensed consolidated statements of operations as follows (e) : Cost of sales 16 14 43 40 Selling, informational and administrative expenses 71 136 196 344 Research and development expenses 29 — 59 — Total implementation costs 116 150 298 384 Total costs associated with acquisitions and cost-reduction/productivity initiatives $ 276 $ 357 $ 696 $ 982 (a) Primarily represents cost-reduction initiatives. Restructuring charges/(credits) associated with Biopharma: charges of $1 million and credits of $22 million for the three and nine months ended October 1, 2023, respectively, and charges of $62 million and $108 million for the three and nine months ended October 2, 2022, respectively. (b) Represents external costs for banking, legal, accounting and other similar services. (c) Represents external, incremental costs directly related to integrating acquired businesses and our proposed acquisition of Seagen, such as expenditures for consulting and the integration of systems and processes, and certain other qualifying costs. In the nine months ended October 1, 2023, integration/pre-integration costs and other were mostly related to our acquisitions of Biohaven and GBT and our proposed acquisition of Seagen. In the nine months ended October 2, 2022, integration costs and other were mostly related to our acquisition of Arena, including $138 million in payments to Arena employees in the first quarter of 2022 for the fair value of previously unvested long-term incentive awards that was recognized as post-closing compensation expense. (d) Represents the impact of changes in the estimated useful lives of assets involved in restructuring actions. (e) Represents 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) Employee Asset Exit Costs Accrual Balance, December 31, 2022 (a) $ 1,196 $ — $ 8 $ 1,204 Provision/(credit) 77 45 44 165 Utilization and other (b) (700) (45) (39) (784) Balance, October 1, 2023 (c) $ 573 $ — $ 12 $ 585 (a) Included in Other current liabilities ($991 million) and Other noncurrent liabilities ($213 million). (b) Other activity includes adjustments for foreign currency translation that are not material. (c) Included in Other current liabilities ($447 million) and Other noncurrent liabilities ($137 million). |
Other (Income)_Deductions_Net
Other (Income)/Deductions—Net | 9 Months Ended |
Oct. 01, 2023 | |
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) October 1, October 2, October 1, October 2, Interest income $ (523) $ (70) $ (1,015) $ (114) Interest expense 695 311 1,521 925 Net interest expense (a) 173 240 505 811 Royalty-related income (260) (239) (737) (628) Net (gains)/losses on asset disposals — 7 (2) 6 Net (gains)/losses recognized during the period on equity securities (b) 393 112 709 1,353 Income from collaborations, out-licensing arrangements and sales of compound/product rights (10) (4) (84) (17) Net periodic benefit costs/(credits) other than service costs (92) (306) (260) (294) Certain legal matters, net (c) 71 77 246 175 Certain asset impairments (d) — 200 264 200 Haleon/Consumer Healthcare JV equity method (income)/loss (e) (131) 51 (354) (283) Other, net (f) (222) (198) (643) (260) Other (income)/deductions––net $ (79) $ (59) $ (356) $ 1,063 (a) The decrease in net interest expense in the third quarter and first nine months of 2023 reflects higher interest expense driven by our $31 billion aggregate principal amount of senior unsecured notes issued in May 2023 as part of the financing for our proposed acquisition of Seagen, which was more than offset by higher interest income on the investment of the net proceeds from the debt issuance. (b) The net losses in the third quarter of 2023 include, among other things, unrealized losses of $312 million related to our investments in Cerevel Therapeutics Holdings, Inc. (Cerevel) and Allogene Therapeutics, Inc (Allogene). The net losses in the first nine months of 2023 include, among other things, unrealized losses of $606 million related to our investments in BioNTech, Cerevel and Allogene. The net losses in the first nine months of 2022 included, among other things, unrealized losses of $974 million related to our investments in BioNTech, Cerevel and Arvinas. (c) The third quarter of 2023 includes legal obligations related to pre-acquisition matters and certain product liability expenses related to products discontinued and/or divested by Pfizer. The first nine months of 2023 primarily includes certain product liability and other legal expenses related to products discontinued and/or divested by Pfizer and legal obligations related to pre-acquisition matters. The third quarter and first nine months of 2022 primarily included certain product liability and other legal expenses related to products discontinued and/or divested by Pfizer. (d) The first nine months of 2023 primarily represents intangible asset impairment charges, including $128 million associated with Other business activities, related to IPR&D and developed technology rights for acquired software assets and reflects unfavorable pivotal trial results and updated commercial forecasts, and $120 million associated with our Biopharma segment resulting from the discontinuation of a study related to an out-licensed IPR&D asset for the treatment of prostate cancer, acquired in our Array BioPharma Inc. (Array) acquisition. The third quarter and first nine months of 2022 represented an intangible asset impairment charge associated with our Biopharma segment, representing an IPR&D asset for the unapproved indication of symptomatic dilated cardiomyopathy due to a mutation of the gene encoding the lamin A/C protein, acquired in our Array acquisition, and was a result of the Phase 3 trial reaching futility at a pre-planned interim analysis. (e) See Note 2C . (f) The third quarter and first nine months of 2023 includes, among other things, a $222 million gain on the divestiture of our early-stage rare disease gene therapy portfolio to Alexion. The first nine months of 2023 also includes, among other things, dividend income of $213 million from our investment in ViiV and $211 million from our investment in Nimbus resulting from Takeda Pharmaceutical Company Limited’s acquisition of Nimbus’s oral, selective allosteric tyrosine kinase 2 (TYK2) inhibitor program subsidiary. Additional information about the intangible assets that were impaired during 2023 follows: Nine Months Ended Fair Value (a) October 1, 2023 (MILLIONS) Amount Level 1 Level 2 Level 3 Impairment Intangible assets––Licensing agreements and other (b) $ — $ — $ — $ — $ 120 Intangible assets––IPR&D (b) — — — — 94 Intangible assets––Developed technology rights (b) — — — — 34 Total $ — $ — $ — $ — $ 248 (a) The fair value amount is presented as of the date of impairment, as this asset is not measured at fair value on a recurring basis. See also Note 1E in our 2022 Form 10-K . (b) Reflects intangible assets written down to fair value in 2023. 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 for 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 |
Tax Matters
Tax Matters | 9 Months Ended |
Oct. 01, 2023 | |
Income Tax Disclosure [Abstract] | |
Tax Matters | Tax Matters A. Taxes on Income/(Loss) from Continuing Operations Our effective tax rate for continuing operations was 28.8% for the third quarter of 2023, compared to 4.0% for the third quarter of 2022, and was (6.2)% for the first nine months of 2023, compared to 10.5% for the first nine months of 2022. The positive effective tax rate for the third quarter of 2023 reflects a tax benefit on a pre-tax loss primarily resulting from changes in forecast and jurisdictional mix of earnings. The tax benefit for the third quarter of 2023 and the negative effective tax rate for the first nine months of 2023, compared to the tax provisions for the third quarter and first nine months of 2022, were primarily due to changes in forecast and jurisdictional mix of earnings. The tax provisions for the third quarter and first nine months of 2022 also included tax benefits related to global income tax resolutions in multiple tax jurisdictions spanning multiple tax years that included the closing of U.S. Internal Revenue Service audits covering five tax years . We 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 fifth annual installment of this liability was paid by its April 18, 2023 due date. The sixth annual installment is due April 15, 2024 and is reported in current Income taxes payable as of October 1, 2023. The remaining liability is reported in noncurrent Other taxes payable. 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. 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. The U.S. is one of our major tax jurisdictions, and we are regularly audited by the IRS. With respect to Pfizer, tax years 2016-2018 are under audit. Tax years 2019-2023 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 and certain related audits, appeals and investigations in certain major international tax jurisdictions dating back to 2012. See Note 5D in our 2022 Form 10-K. 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) October 1, October 2, October 1, October 2, Foreign currency translation adjustments, net (a) $ (28) $ 20 $ (33) $ (165) Unrealized holding gains/(losses) on derivative financial instruments, net 80 47 108 177 Reclassification adjustments for (gains)/losses included in net income/(loss) (5) (72) (16) (97) 75 (25) 91 80 Unrealized holding gains/(losses) on available-for-sale securities, net (10) (97) 4 (175) Reclassification adjustments for (gains)/losses included in net income/(loss) 6 76 (55) 137 (4) (21) (51) (38) Reclassification adjustments related to amortization of prior service costs and other, net (7) (7) (21) (23) Reclassification adjustments related to curtailments of prior service costs and other, net (1) — (3) (3) (7) (8) (24) (26) Tax provision/(benefit) on other comprehensive income/(loss) $ 36 $ (33) $ (17) $ (149) (a) Taxes are not provided for foreign currency translation adjustments relating to investments in international subsidiaries that we intend to hold indefinitely. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss, Excluding Noncontrolling Interests | 9 Months Ended |
Oct. 01, 2023 | |
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) Foreign Currency Translation Adjustments (a) Derivative Financial Instruments Available-For-Sale Securities Prior Service (Costs)/Credits and Other Accumulated Other Comprehensive Income/(Loss) Balance, December 31, 2022 $ (8,360) $ (412) $ 220 $ 248 $ (8,304) Other comprehensive income/(loss) (b) 274 501 (360) (78) 338 Balance, October 1, 2023 $ (8,086) $ 89 $ (140) $ 170 $ (7,966) (a) Amounts do not include foreign currency translation adjustments attributable to noncontrolling interests. (b) Foreign currency translation adjustments include net losses related to our equity-method investment in Haleon (see Note 2C ) and the impact of our net investment hedging program. |
Financial Instruments
Financial Instruments | 9 Months Ended |
Oct. 01, 2023 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | Financial Instruments A. Fair Value Measurements Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis and Fair Value Hierarchy, using a Market Approach: October 1, 2023 December 31, 2022 (MILLIONS) Total Level 1 Level 2 Total Level 1 Level 2 Financial assets: Short-term investments Equity securities with readily determinable fair values: Money market funds $ 13,193 $ — $ 13,193 $ 1,588 $ — $ 1,588 Available-for-sale debt securities: Government and agency—non-U.S. 18,236 — 18,236 15,915 — 15,915 Government and agency—U.S. 5,832 — 5,832 1,313 — 1,313 Corporate and other 2,179 — 2,179 1,514 — 1,514 26,247 — 26,247 18,743 — 18,743 Total short-term investments 39,440 — 39,440 20,331 — 20,331 Other current assets Derivative assets: Interest rate contracts 1 — 1 — — — Foreign exchange contracts 712 — 712 714 — 714 Total other current assets 713 — 713 714 — 714 Long-term investments Equity securities with readily determinable fair values (a) 2,118 2,112 6 2,836 2,823 13 Available-for-sale debt securities: Government and agency—non-U.S. 138 — 138 280 — 280 Corporate and other 73 — 73 72 — 72 211 — 211 352 — 352 Total long-term investments 2,329 2,112 217 3,188 2,823 365 Other noncurrent assets Derivative assets: Interest rate contracts 1 — 1 — — — Foreign exchange contracts 413 — 413 364 — 364 Total derivative assets 414 — 414 364 — 364 Insurance contracts (b) 718 — 718 665 — 665 Total other noncurrent assets 1,132 — 1,132 1,028 — 1,028 Total assets $ 43,613 $ 2,112 $ 41,501 $ 25,261 $ 2,823 $ 22,439 Financial liabilities: Other current liabilities Derivative liabilities: Interest rate contracts $ 4 $ — $ 4 $ 10 $ — $ 10 Foreign exchange contracts 193 — 193 694 — 694 Total other current liabilities 197 — 197 704 — 704 Other noncurrent liabilities Derivative liabilities: Interest rate contracts 533 — 533 321 — 321 Foreign exchange contracts 738 — 738 864 — 864 Total other noncurrent liabilities 1,270 — 1,270 1,185 — 1,185 Total liabilities $ 1,468 $ — $ 1,468 $ 1,889 $ — $ 1,889 (a) Long-term equity securities of $127 million as of October 1, 2023 and $143 million as of December 31, 2022 were held in restricted trusts for U.S. non-qualified employee benefit plans. (b) Includes life insurance policies held in restricted trusts for U.S. non-qualified employee benefit plans. The underlying invested assets in these contracts are marketable securities, which are carried at fair value, with changes in fair value recognized in Other (income)/deductions—net (see Note 4 ). Financial Assets and Liabilities Not Measured at Fair Value on a Recurring Basis–– The carrying value of Long-term debt, excluding the current portion, was $61 billion as of October 1, 2023 and $33 billion as of December 31, 2022. The estimated fair value of such debt, using a market approach and Level 2 inputs, was $57 billion as of October 1, 2023 and $30 billion as of December 31, 2022. B. Investments Total Short-Term, Long-Term and Equity-Method Investments The following summarizes our investments by classification type: (MILLIONS) October 1, December 31, 2022 Short-term investments Equity securities with readily determinable fair values (a) $ 13,193 $ 1,588 Available-for-sale debt securities 26,247 18,743 Held-to-maturity debt securities 1,593 1,985 Total Short-term investments $ 41,033 $ 22,316 Long-term investments Equity securities with readily determinable fair values (b) $ 2,118 $ 2,836 Available-for-sale debt securities 211 352 Held-to-maturity debt securities 50 48 Private equity securities at cost (b) 834 800 Total Long-term investments $ 3,214 $ 4,036 Equity-method investments 11,025 11,033 Total long-term investments and equity-method investments $ 14,239 $ 15,069 Held-to-maturity cash equivalents $ 384 $ 679 (a) Represent money market funds primarily invested in U.S. Treasury and government debt. (b) Represent investments in the life sciences sector. Debt Securities Our investment portfolio consists of investment-grade debt securities issued across diverse governments, corporate and financial institutions: October 1, 2023 December 31, 2022 Gross Unrealized Contractual or Estimated Maturities (in Years) Gross Unrealized (MILLIONS) Amortized Cost Gains Losses Fair Value Within 1 Over 1 Over 5 Amortized Cost Gains Losses Fair Value Available-for-sale debt securities Government and agency –– non-U.S. $ 18,528 $ 16 $ (170) $ 18,374 $ 18,236 $ 138 $ — $ 15,946 $ 297 $ (48) $ 16,195 Government and agency––U.S. 5,833 — (1) 5,832 5,832 — — 1,313 — — 1,313 Corporate and other 2,257 — (6) 2,252 2,179 73 — 1,584 7 (4) 1,586 Held-to-maturity debt securities Time deposits and other 944 — — 944 898 35 11 1,171 — — 1,171 Government and agency –– non-U.S. 1,084 — — 1,084 1,080 3 1 1,542 — — 1,542 Total debt securities $ 28,646 $ 16 $ (176) $ 28,486 $ 28,225 $ 249 $ 12 $ 21,556 $ 304 $ (53) $ 21,807 Any expected credit losses to these portfolios would be immaterial to our 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, held at the reporting date: Three Months Ended Nine Months Ended (MILLIONS) October 1, October 2, October 1, October 2, Net (gains)/losses recognized during the period on equity securities (a) $ 393 $ 112 $ 709 $ 1,353 Less: Net (gains)/losses recognized during the period on equity securities sold during the period (1) (5) (48) (84) Net unrealized (gains)/losses during the reporting period on equity securities still held at the reporting date (b) $ 394 $ 116 $ 757 $ 1,436 (a) Reported in Other (income)/deductions –– net. See Note 4 . (b) Included in net unrealized (gains)/losses are observable price changes on equity securities without readily determinable fair values. As of October 1, 2023, there were cumulative impairments and downward adjustments of $188 million and upward adjustments of $213 million. Impairments, downward and upward adjustments were not significant in the third quarters and first nine months of 2023 and 2022. C. Short-Term Borrowings Short-term borrowings include: (MILLIONS) October 1, December 31, 2022 Current portion of long-term debt, principal amount $ 2,250 $ 2,550 Other short-term borrowings, principal amount (a) 288 385 Total short-term borrowings, principal amount 2,538 2,935 Net fair value adjustments 10 10 Total Short-term borrowings, including current portion of long-term debt , carried at historical proceeds, as adjusted $ 2,548 $ 2,945 (a) Primarily includes cash collateral. See Note 7F . D. Long-Term Debt Issuance In May 2023, we issued, through our wholly-owned finance subsidiary, PIE, the following senior unsecured notes as part of the financing for our proposed acquisition of Seagen (a), (b) : (MILLIONS) Principal Interest Rate Maturity Date October 1, 4.65% (c) May 19, 2025 $ 3,000 4.45% (c) May 19, 2026 3,000 4.45% (c) May 19, 2028 4,000 4.65% (c) May 19, 2030 3,000 4.75% May 19, 2033 5,000 5.11% (c) May 19, 2043 3,000 5.30% May 19, 2053 6,000 5.34% (c) May 19, 2063 4,000 Total long-term debt issued in the second quarter of 2023 (d) $ 31,000 (a) The notes are fully and unconditionally guaranteed on a senior unsecured basis by Pfizer Inc. PIE was formed to finance a portion of the consideration for the proposed acquisition of Seagen and has no assets or operations and will have no assets or operations, other than as related to the issuance, administration and repayment of the notes and any other debt securities that it may issue in the future. (b) The notes may be redeemed by us at any time, in whole, or in part, at a make-whole redemption price plus accrued and unpaid interest. (c) The notes are subject to a special mandatory redemption (at a price equal to 101% of the aggregate principal amount of such series of notes, plus any accrued and unpaid interest) under certain circumstances if the proposed acquisition of Seagen is terminated or does not close by an agreed upon date. (d) The weighted average effective interest rate for the notes at issuance was 4.93%. The following outlines our senior unsecured long-term debt* and the weighted-average stated interest rate by maturity: (MILLIONS) October 1, December 31, 2022 Notes due 2024 (3.9% for 2022) (a) $ — $ 2,250 Notes due 2025 (3.9% for 2023 and 0.8% for 2022) 3,750 750 Notes due 2026 (3.7% for 2023 and 2.9% for 2022) 6,000 3,000 Notes due 2027 (2.2% for 2023 and 2.1% for 2022) 995 1,000 Notes due 2028 (4.6% for 2023 and 4.8% for 2022) 5,660 1,660 Notes due 2029 (3.5% for 2023 and 2022) 1,750 1,750 Notes due 2030-2034 (4.1% for 2023 and 2.9% for 2022) 12,000 4,000 Notes due 2035-2039 (5.8% for 2023 and 2022) 8,026 8,017 Notes due 2040-2044 (4.1% for 2023 and 3.6% for 2022) 7,931 4,903 Notes due 2045-2049 (4.1% for 2023 and 2022) 3,500 3,500 Notes due 2050-2063 (5.0% for 2023 and 2.7% for 2022) 11,250 1,250 Total long-term debt, principal amount $ 60,862 $ 32,080 Net fair value adjustments related to hedging and purchase accounting 677 959 Net unamortized discounts, premiums and debt issuance costs (491) (175) Other long-term debt — 20 Total long-term debt, carried at historical proceeds, as adjusted $ 61,048 $ 32,884 Current portion of long-term debt, carried at historical proceeds, as adjusted (not included above (3.9% for 2023 and 3.7% for 2022)) $ 2,260 $ 2,560 * Our long-term debt is generally redeemable by us at any time at varying redemption prices plus accrued and unpaid interest. (a) Reclassified to the current portion of long-term debt. 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. Where foreign exchange risk is not offset by other exposures, we manage our foreign exchange risk principally 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, Canadian dollar and Chinese renminbi, and include a portion of our forecasted foreign exchange-denominated intercompany inventory sales hedged up to two years. We may seek to protect against possible declines in the reported net investments of our foreign business entities. Interest Rate Risk–– Our interest-bearing investments and borrowings are subject to interest rate risk. Depending on market conditions, we may 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 notional amounts: October 1, 2023 December 31, 2022 Fair Value Fair Value (MILLIONS) Notional Asset Liability Notional Asset Liability Derivatives designated as hedging instruments : Foreign exchange contracts (a) $ 27,979 $ 960 $ 781 $ 26,603 $ 838 $ 1,196 Interest rate contracts 6,250 2 537 2,250 — 331 962 1,319 838 1,527 Derivatives not designated as hedging instruments : Foreign exchange contracts $ 17,428 165 149 $ 29,814 240 362 Total $ 1,127 $ 1,468 $ 1,078 $ 1,889 (a) The notional amount of outstanding foreign exchange contracts hedging our intercompany forecasted inventory sales was $4.7 billion as of October 1, 2023 and $4.4 billion as of December 31, 2022. The following summarizes information about the gains/(losses) incurred to hedge or offset operational foreign exchange or interest rate risk exposures: Gains/(Losses) (a) Gains/(Losses) (a) Gains/(Losses) Reclassified from OCI into OID and COS (a) Three Months Ended (MILLIONS) October 1, October 2, October 1, October 2, October 1, October 2, Derivative Financial Instruments in Cash Flow Hedge Relationships: Foreign exchange contracts (b) $ — $ — $ 359 $ 528 $ 20 $ 558 Amount excluded from effectiveness testing and amortized into earnings (c) — — 49 61 46 57 Derivative Financial Instruments in Fair Value Hedge Relationships: Interest rate contracts (213) (124) — — — — Hedged item 195 124 — — — — Derivative Financial Instruments in Net Investment Hedge Relationships: Foreign exchange contracts — — 297 680 — — Amount excluded from effectiveness testing and amortized into earnings (c) — — 5 78 35 32 Non-Derivative Financial Instruments in Net Investment Hedge Relationships (d) : Foreign currency long-term debt — — 22 49 — — Derivative Financial Instruments Not Designated as Hedges: Foreign exchange contracts 57 (420) — — — — $ 39 $ (420) $ 733 $ 1,396 $ 102 $ 647 Gains/(Losses) (a) Gains/(Losses) (a) Gains/(Losses) Reclassified from OCI into OID and COS (a) Nine Months Ended (MILLIONS) October 1, October 2, October 1, October 2, October 1, October 2, Derivative Financial Instruments in Cash Flow Hedge Relationships: Interest rate contracts $ — $ — $ 68 $ — $ — $ — Foreign exchange contracts (b) — — 312 1,339 (210) 872 Amount excluded from effectiveness testing and amortized into earnings (c) — — 139 105 136 100 Derivative Financial Instruments in Fair Value Hedge Relationships: Interest rate contracts (210) (346) — — — — Hedged item 192 346 — — — — Derivative Financial Instruments in Net Investment Hedge Relationships: Foreign exchange contracts — — 14 1,613 — — Amount excluded from effectiveness testing and amortized into earnings (c) — — 81 63 102 95 Non-Derivative Financial Instruments in Net Investment Hedge Relationships (d) : Foreign currency short-term borrowings — — — 26 — — Foreign currency long-term debt — — 5 119 — — Derivative Financial Instruments Not Designated as Hedges: Foreign exchange contracts 173 (832) — — — — $ 155 $ (832) $ 620 $ 3,264 $ 29 $ 1,068 (a) OID = Other (income)/deductions—net, included in Other (income)/deductions—net in the condensed consolidated statements of operations . COS = Cost of Sales, included in Cost of sales in the condensed consolidated statements of operations. OCI = Other comprehensive income/(loss), included in the condensed consolidated statements of comprehensive income/(loss) . (b) The amounts reclassified from OCI into COS were: • a net gain of $49 million in the third quarter of 2023; • a net gain of $195 million in the first nine months of 2023; • a net gain of $125 million in the third quarter of 2022; and • a net gain of $227 million in the first nine months of 2022. 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 gain of $302 million within the next 12 months into income . The maximum length of time over which we are hedging our exposure to the variability in future foreign exchange cash flows is approximately 20 years and relates to foreign currency debt. (c) The amounts reclassified from OCI were reclassified into OID. (d) Short-term borrowings and long-term debt include foreign currency borrowings, which are used in net investment hedges. The related long-term debt carrying values as of October 1, 2023 and December 31, 2022 were $790 million and $795 million, respectively. The following summarizes cumulative basis adjustments to our debt in fair value hedges: October 1, 2023 December 31, 2022 Cumulative Amount of Fair Value Hedging Adjustment Increase/(Decrease) to Cumulative Amount of Fair Value Hedging Adjustment Increase/(Decrease) to (MILLIONS) 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 borrowings, including current portion of long-term debt $ — $ — $ 8 $ — $ — $ 10 Long-term debt $ 6,709 $ (513) $ 973 $ 2,235 $ (321) $ 1,042 (a) Carrying amounts exclude the cumulative amount of fair value hedging adjustments. F. Credit Risk A significant portion of our trade accounts receivable balances are due from wholesalers and governments. For additional information on our trade accounts receivables with significant customers, see Note 13C below and Note 17C in our 2022 Form 10-K. As of October 1, 2023, the largest investment exposures in our portfolio consisted primarily of money market funds mainly invested in U.S. Treasury and government debt, as well as sovereign debt instruments issued by the U.S., Germany, Canada, France, the U.K., and Japan. With respect to our derivative financial instrument agreements with financial institutions, we do not expect to incur a significant loss from failure of any counterparty. Derivative financial instruments are executed under International Swaps and Derivatives Association master agreements with credit-support annexes that contain zero threshold provisions requiring collateral to be exchanged daily depending on levels of exposure. As a result, there are no significant concentrations of credit risk with any individual financial institution. As of October 1, 2023, the aggregate fair value of these derivative financial instruments that are in a net payable position was $941 million, for which we have posted collateral of $1.0 billion with a corresponding amount reported in Short-term investments . As of October 1, 2023, the aggregate fair value of our derivative financial instruments that are in a net receivable position was $333 million, for which we have received collateral of $256 million with a corresponding amount reported in Short-term borrowings, including current portion of long-term debt. |
Other Financial Information
Other Financial Information | 9 Months Ended |
Oct. 01, 2023 | |
Other Financial Information [Abstract] | |
Other Financial Information | Other Financial Information A. Inventories The following summarizes the components of Inventories : (MILLIONS) October 1, December 31, 2022 Finished goods $ 2,892 $ 2,603 Work-in-process 6,515 5,519 Raw materials and supplies 797 859 Inventories (a) $ 10,204 $ 8,981 Noncurrent inventories not included above (b) $ 1,416 $ 5,827 (a) The increase from December 31, 2022 of $1.2 billion reflects higher inventory levels for certain products due to supply recovery, new product launches and changes in net market demand, partially offset by $0.7 billion in inventory write-offs for Paxlovid and Comirnaty. (b) Included in Other noncurrent assets . The decrease from December 31, 2022 of $4.4 billion is primarily driven by inventory write-offs for Paxlovid of $4.2 billion and, to a lesser extent, inventory write-offs for Comirnaty of $0.7 billion, partially offset by increases due to inventory build. The charges and corresponding inventory write-offs were based on our analysis of Paxlovid and Comirnaty inventory levels as of October 1, 2023 in relation to our commercial outlook for both products. Based on our current estimates and assumptions, there are no recoverability issues for the remaining amounts. B. Other Current Liabilities Other current liabilities includes, among other things, amounts payable to BioNTech for the gross profit split for Comirnaty, which totaled $533 million as of October 1, 2023 and $5.2 billion as of December 31, 2022. C. Supplier Finance Program Obligation We maintain voluntary supply chain finance agreements with several participating financial institutions. Under these agreements, participating suppliers may voluntarily elect to sell their accounts receivable with Pfizer to these financial institutions. Our suppliers negotiate their financing agreements directly with the respective financial institutions and we are not a party to these agreements. We have no economic interest in our suppliers’ decision to participate and we pay the financial institutions the stated amount of confirmed invoices on the original maturity dates, which is generally within 90 to 120 days of the invoice date. The agreements with the financial institutions do not require Pfizer to provide assets pledged as security or other forms of guarantees for the supplier finance program. All outstanding amounts related to suppliers participating in such financing arrangements are recorded within trade payables in our consolidated balance sheet. As of October 1, 2023 and December 31, 2022, respectively, $781 million and $849 million of our trade payables to suppliers who participate in these financing arrangements were outstanding. |
Identifiable Intangible Assets
Identifiable Intangible Assets | 9 Months Ended |
Oct. 01, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Identifiable Intangible Assets | Identifiable Intangible Assets A. Identifiable Intangible Assets The following summarizes the components of Identifiable intangible assets : October 1, 2023 December 31, 2022 (MILLIONS) Gross Accumulated Identifiable Gross Accumulated Identifiable Finite-lived intangible assets Developed technology rights (a) $ 86,001 $ (59,146) $ 26,855 $ 85,604 $ (56,307) $ 29,297 Brands 922 (869) 53 922 (844) 78 Licensing agreements and other 2,368 (1,446) 922 2,237 (1,397) 841 89,290 (61,461) 27,830 88,763 (58,548) 30,215 Indefinite-lived intangible assets Brands 827 827 827 827 IPR&D (b) 10,803 10,803 11,357 11,357 Licensing agreements and other 764 764 971 971 12,394 12,394 13,155 13,155 Identifiable intangible assets (c) $ 101,684 $ (61,461) $ 40,224 $ 101,919 $ (58,548) $ 43,370 (a) The increase in the gross carrying amount includes, among other things, $495 million of capitalized milestones and the transfer of $450 million from IPR&D to developed technology rights as a result of the approval in the U.S. for Zavzpret nasal spray, and a $90 million capitalized milestone as a result of the approval of Ngenla in the U.S. (all in the second quarter of 2023). (b) The decrease in the gross carrying amount mainly reflects the transfer from IPR&D to developed technology rights as a result of the approval in the U.S. of Zavzpret nasal spray. (c) The decrease is primarily due to amortization expense of $3.5 billion and impairments of $248 million (see Note 4 ), partially offset by additions of $681 million mostly related to milestone payments for the approvals in the U.S. for Zavzpret nasal spray and Ngenla. |
Pension and Postretirement Bene
Pension and Postretirement Benefit Plans | 9 Months Ended |
Oct. 01, 2023 | |
Retirement Benefits [Abstract] | |
Pension and Postretirement Benefit Plans | Pension and Postretirement Benefit Plans The following summarizes the components of net periodic benefit cost/(credit): Pension Plans U.S. International Postretirement Three Months Ended (MILLIONS) Oct. 1, 2023 Oct. 2, 2022 Oct. 1, 2023 Oct. 2, 2022 Oct. 1, 2023 Oct. 2, 2022 Service cost $ — $ — $ 21 $ 29 $ 3 $ 7 Interest cost 147 151 73 38 5 7 Expected return on plan assets (194) (195) (77) (72) (11) (12) Amortization of prior service cost/(credit) — — — — (29) (31) Actuarial (gains)/losses (a) (11) (193) — — — — Curtailments — — — — — (1) Special termination benefits — 1 — — — — Net periodic benefit cost/(credit) reported in income $ (58) $ (235) $ 17 $ (6) $ (32) $ (30) Pension Plans U.S. International Postretirement Nine Months Ended (MILLIONS) Oct. 1, 2023 Oct. 2, 2022 Oct. 1, 2023 Oct. 2, 2022 Oct. 1, 2023 Oct. 2, 2022 Service cost $ — $ — $ 65 $ 89 $ 9 $ 22 Interest cost 442 387 216 121 16 21 Expected return on plan assets (583) (685) (229) (229) (33) (35) Amortization of prior service cost/(credit) 1 1 — (1) (90) (99) Actuarial (gains)/losses (a) 4 231 3 — — — Curtailments — — (1) — (12) (14) Special termination benefits 6 8 — — — 1 Net periodic benefit cost/(credit) reported in income $ (131) $ (57) $ 53 $ (20) $ (109) $ (106) (a) The third quarter of 2022 mainly reflected interim actuarial remeasurement gains, primarily driven by an increase in the discount rate, partially offset by unfavorable plan asset performance. The first nine months of 2022 mainly reflected interim actuarial remeasurement losses, primarily driven by unfavorable plan asset performance, partially offset by gains due to an increase in the discount rate. The components of net periodic benefit cost/(credit) other than the service cost component are primarily included in Other (income)/deductions––net (see Note 4 ). For the nine months ended October 1, 2023, we contributed $125 million, $128 million, and $28 million to our U.S. Pension Plans, International Pension Plans, and Postretirement Plans, respectively, from our general assets, which include direct employer benefit payments. |
Earnings_(Loss) Per Common Shar
Earnings/(Loss) Per Common Share Attributable to Pfizer Inc. Common Shareholders | 9 Months Ended |
Oct. 01, 2023 | |
Earnings Per Share [Abstract] | |
Earnings/(Loss) Per Common Share Attributable to Pfizer Inc. Common Shareholders | Earnings/(Loss) Per Common Share Attributable to Pfizer Inc. Common Shareholders The following presents the detailed calculation of EPS/(LPS): Three Months Ended Nine Months Ended (MILLIONS) October 1, October 2, October 1, October 2, EPS/(LPS) Numerator Income/(loss) from continuing operations attributable to Pfizer Inc. common shareholders $ (2,394) $ 8,630 $ 5,477 $ 26,373 Discontinued operations––net of tax 12 (21) 11 4 Net income/(loss) attributable to Pfizer Inc. common shareholders $ (2,382) $ 8,608 $ 5,488 $ 26,378 EPS/(LPS) Denominator Weighted-average common shares outstanding––Basic 5,646 5,607 5,642 5,606 Common-share equivalents (a) — 111 72 124 Weighted-average common shares outstanding––Diluted 5,646 5,718 5,714 5,729 Anti-dilutive common stock equivalents (b) 58 3 2 1 (a) For the three months ended October 1, 2023, due to the net loss attributable to Pfizer Inc. common shareholders, weighted average common-share equivalents of 56 million shares were not included in the computation of diluted LPS because their inclusion would have had an anti-dilutive effect. (b) 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 |
Oct. 01, 2023 | |
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, guarantees and indemnifications. The following outlines our legal contingencies, guarantees and indemnifications. For a discussion of our tax contingencies, see Note 5B . 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. An adverse outcome could result in loss of patent protection for a product, a significant loss of revenues from a product or impairment of the value of associated assets. We are the plaintiff in the majority of these actions. • Product liability and other product-related litigation related to current or former products, which can include personal injury, consumer, off-label promotion, securities, antitrust and breach of contract claims, among others, and 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 asserted or unasserted matters, which can include acquisition-, licensing-, intellectual property-, collaboration- or co-promotion-related and product-pricing claims and environmental claims and proceedings, and 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 increased expenses and/or losses, including damages, royalty payments, 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 matters, which could have a material adverse effect on our results of operations and/or our cash flows in the period in which the amounts are accrued or 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, which result from a complex series of judgments about future events and uncertainties, 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 occur that might 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. For proceedings under environmental laws to which a governmental authority is a party, we have adopted a disclosure threshold of $1 million in potential or actual governmental monetary sanctions. 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 to assess materiality, such as, among others, the amount of damages and the nature of other relief sought, if 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. Some of the matters discussed below include those which management believes that the likelihood of possible loss in excess of amounts accrued is remote. A1. Legal Proceedings––Patent Litigation We are involved in suits relating to our patents (or those of our collaboration/licensing partners to which we have licenses or co-promotion rights), including but not limited to, those discussed below. We face claims by generic drug manufacturers that patents covering our products (or those of our collaboration/licensing partners to which we have licenses or co-promotion rights and to which we may or may not be a party), 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 that are discussed below, patent rights to certain of our products or those of our collaboration/licensing partners are being challenged in various other jurisdictions. Some of our collaboration or licensing partners face challenges to the validity of their patent rights in non-U.S. jurisdictions. For example, in April 2022, the U.K. High Court issued a judgment finding invalid a BMS patent related to Eliquis due to expire in 2026. In May 2023, the Court of Appeal dismissed BMS’s appeal and in October 2023, the Supreme Court refused BMS’s permission to appeal. Additional challenges are pending in other jurisdictions. Also, in July 2022, CureVac AG (CureVac) brought a patent infringement action against BioNTech and certain of its subsidiaries in the German Regional Court alleging that Comirnaty infringes certain German utility model patents and certain expired and unexpired European patents. Additional challenges involving Comirnaty patents may be filed against us and/or BioNTech in other jurisdictions in the future. Adverse decisions in these matters could have a material adverse effect on our results of operations. 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. 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, as well as court proceedings relating to our intellectual property or the intellectual property rights of others, including challenges to such rights initiated by us. Also, if one of our patents (or one of our collaboration/licensing partner’s 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 have been challenged in inter partes review and post-grant review proceedings in the U.S. Patent and Trademark Office, as well as outside the U.S. The invalidation of any of the patents in our pneumococcal portfolio could potentially allow additional competitor vaccines, if approved, to enter the marketplace earlier than anticipated. In the event that any of the patents are found valid and infringed, a competitor’s vaccine, if approved, might be prohibited from entering the market or a competitor might be required to pay us 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. If one of our marketed products (or a product of our collaboration/licensing partners to which we have licenses or co-promotion rights) is found to infringe valid patent rights of a third party, such third party may be awarded significant damages or royalty payments, or we may be prevented from further sales of that product. Such damages may be enhanced as much as three-fold if we or one of our subsidiaries is found to have willfully infringed valid patent rights of a third party. Actions In Which We Are The Plaintiff Xeljanz (tofacitinib) Beginning in 2017, we brought patent-infringement actions against several generic manufacturers that filed separate abbreviated new drug applications (ANDAs) 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, we have settled actions with several manufacturers on terms not material to us. The remaining actions continue in the U.S. District Court for the District of Delaware as described below. In October 2021, we brought a separate patent-infringement action against Sinotherapeutics Inc. (Sinotherapeutics) asserting the infringement and validity of our patent covering extended release formulations of tofacitinib that was challenged by Sinotherapeutics in its ANDA seeking approval to market a generic version of tofacitinib 11 mg extended release tablets. In November 2022, we filed an additional patent-infringement action against Sinotherapeutics relating to its challenge of our extended release formulation and method of treatment patents in its ANDA seeking approval to market a generic version of tofacitinib 22 mg extended release tablets. In June 2023, we brought a patent infringement action against Aurobindo Pharma Limited and Aurobindo Pharma USA, Inc. (collectively, Aurobindo) asserting the infringement and validity of our basic compound patent, in connection with Aurobindo’s ANDA seeking approval to market a generic version of tofacitinib 11 mg extended release tablets. Also in June 2023, we brought a patent infringement action against Sun Pharmaceutical Industries Limited and Sun Pharmaceutical Industries, Inc. (collectively, Sun) asserting the infringement and validity of our basic compound patent, in connection with Sun’s ANDA seeking approval to market a generic version of tofacitinib 5 mg and 10 mg immediate release tablets. In June 2023, we also brought a patent infringement action against Annora Pharma Private Limited (Annora) and Hetero USA, Inc. (Hetero) asserting the infringement and validity of our basic compound patent, in connection with Annora’s ANDA seeking approval to market a generic version of tofacitinib 1 mg/mL oral solution. In August 2023, we reached settlement agreements with each of Sun and Annora on terms not material to the Company. Ibrance (palbociclib) Beginning in January 2021, several generic companies notified us that they had filed ANDAs with the FDA seeking approval to market generic versions of Ibrance tablets. We have settled with one of these generic companies on terms not material to us, and have dismissed the patent infringement actions against all other generic companies except for the action against Synthon Pharmaceuticals Inc. and its affiliated entities, in which we have asserted the infringement and validity of the composition of matter patent, expiring in 2027. Eucrisa Beginning in September 2021, several generic companies notified us that they had filed ANDAs with the FDA seeking approval to market generic versions of Eucrisa. The companies assert the invalidity and non-infringement of a composition of matter patent expiring in 2026, two method of use patents expiring in 2027, and one other method of use patent expiring in 2030. In September 2021, we brought patent infringement actions against the generic filers in the U.S. District Court for the District of Delaware, asserting the validity and infringement of the patents challenged by the generic companies. In July 2023, we reached a settlement agreement with one generic company on terms not material to the Company and in July and August 2023, we reached settlement agreements with the remaining generic companies on terms not material to the Company. Mektovi (binimetinib) Beginning in August 2022, several generic companies notified us that they had filed ANDAs with the FDA seeking approval to market generic versions of Mektovi. The companies assert the invalidity and non-infringement of two method of use patents expiring in 2030, a method of use patent expiring in 2031, two method of use patents expiring in 2033, and a product by process patent expiring in 2033. Beginning in September 2022, we brought patent infringement actions against the generic filers in the U.S. District Court for the District of Delaware, asserting the validity and infringement of all six patents. In August 2022 we received notice from Teva Pharmaceuticals, Inc. (Teva) that it had filed an ANDA seeking approval to market a generic version of Mektovi. Teva asserts the invalidity and non-infringement of two method of use patents expiring in 2033 and a product by process patent expiring in 2033. In June 2023, we brought a patent infringement action against Teva in the U.S. District Court for the District of Delaware, asserting the validity and infringement of the three patents. Vyndaqel-Vyndamax (tafamidis/tafamidis meglumine) Beginning in June 2023, several generic companies notified us that they had filed ANDAs with the FDA seeking approval to market generic versions of tafamidis capsules (61 mg) or tafamidis meglumine capsules (20 mg), challenging some or all of the patents listed in the FDA’s Orange Book for Vyndamax (tafamidis) and Vyndaqel (tafamidis meglumine). Scripps Research Institute (Scripps) owns the composition of matter patent and the method of treatment patents covering the products, and Pfizer is the exclusive licensee. Pfizer separately owns the crystalline form patent. Beginning in August 2023, we and Scripps brought patent infringement actions against the generic filers in the U.S. District Court for the District of Delaware, asserting the validity and infringement of the patents in suit. Pfizer is the sole plaintiff in actions that assert only the infringement and validity of the crystalline form patent. Actions in Which We are the Defendant Comirnaty In March 2022, Alnylam Pharmaceuticals, Inc. (Alnylam) filed a complaint in the U.S. District Court for the District of Delaware against Pfizer and Pharmacia & Upjohn Company LLC, our wholly owned subsidiary, alleging that Comirnaty infringes a U.S. patent issued in February 2022, and seeking unspecified monetary damages. In July 2022, Alnylam filed a second complaint in the U.S. District Court for the District of Delaware against Pfizer, Pharmacia & Upjohn Company LLC, BioNTech and BioNTech Manufacturing GmbH, alleging that Comirnaty infringes a U.S. patent issued in July 2022, and seeking unspecified monetary damages. In May 2023, Alnylam filed a separate complaint in the U.S. District Court for the District of Delaware against Pfizer and Pharmacia & Upjohn Company LLC alleging that Comirnaty infringes four U.S. patents issued on various dates in 2023 and seeking unspecified monetary damages. In August 2022, ModernaTX, Inc. (ModernaTX) and Moderna US, Inc. (Moderna) sued Pfizer, BioNTech, BioNTech Manufacturing GmbH and BioNTech US Inc. in the U.S. District Court for the District of Massachusetts, alleging that Comirnaty infringes three U.S. patents. In its complaint, Moderna stated that it is seeking damages for alleged infringement occurring after March 7, 2022. In August 2022, ModernaTX filed a patent infringement action in Germany against Pfizer and certain subsidiary companies, as well as BioNTech and certain subsidiary companies, alleging that Comirnaty infringes two European patents. In September 2022, ModernaTX filed patent infringement actions in the U.K. and in the Netherlands against Pfizer and certain subsidiary companies, as well as BioNTech and certain subsidiary companies, on the same two European patents. In its complaints, ModernaTX stated that it is seeking damages for alleged infringement occurring after March 7, 2022. In the U.K., Pfizer and BioNTech have brought an action against ModernaTX seeking to revoke these two European patents, which was consolidated with the September 2022 action filed by ModernaTX. In November 2023, one of the European patents was revoked by the European Patent Office. ModernaTX has filed additional patent infringement actions against Pfizer and BioNTech in certain other ex-U.S. jurisdictions. In April 2023, Arbutus Biopharma Corporation (Arbutus) and Genevant Sciences GmbH (Genevant) filed a complaint in the U.S. District Court for the District of New Jersey against Pfizer and BioNTech alleging that Comirnaty and its manufacture infringe five U.S. patents, and seeking unspecified monetary damages. In June 2023, Promosome LLC filed a complaint in the U.S. District Court for the Southern District of California against Pfizer and BioNTech alleging that Comirnaty and its manufacture infringe a U.S. patent and seeking unspecified monetary damages. In October 2023, Promosome LLC dismissed the action with prejudice and the action was dismissed by the Court. Paxlovid In June 2022, Enanta Pharmaceuticals, Inc. filed a complaint in the U.S. District Court for the District of Massachusetts against Pfizer alleging that the active ingredient in Paxlovid, nirmatrelvir, infringes a U.S. patent issued in June 2022, and seeking unspecified monetary damages. Abrysvo In August 2023, GlaxoSmithKline Biologics SA and GlaxoSmithKline LLC filed a complaint in the U.S. District Court for the District of Delaware against Pfizer alleging that the active ingredient in Abrysvo infringes four U.S. patents. The complaint seeks unspecified monetary damages and a permanent injunction against sales of Abrysvo for use in adults over 60 years of age. In addition, we have challenged certain of GSK’s RSV vaccine patents in certain ex-U.S. jurisdictions, including the U.K., the Netherlands and Belgium, and GSK has asserted that Abrysvo infringes these patents. Matters Involving Pfizer and its Collaboration/Licensing Partners Comirnaty In July 2022, Pfizer, BioNTech and BioNTech Manufacturing GmbH filed a declaratory judgment complaint against CureVac in the U.S. District Court for the District of Massachusetts seeking a judgment of non-infringement for three U.S. patents relating to Comirnaty. In May 2023, the case was transferred to the U.S. District Court for the Eastern District of Virginia. Also in May 2023, CureVac asserted that Comirnaty infringes the three patents that were the subject of our declaratory judgment complaint, and asserted that Comirnaty infringes six additional U.S. patents. In the U.K., Pfizer and BioNTech have sued CureVac seeking a judgment of invalidity of several patents and CureVac has made certain infringement counterclaims. Xtandi (enzalutamide) In July 2022, Medivation LLC and Medivation Prostate Therapeutics LLC (wholly owned subsidiaries of Pfizer); Astellas Pharma Inc., Astellas US LLC and Astellas Pharma US, Inc.; and The Regents of the University of California filed a patent-infringement suit in the U.S. District Court for the District of New Jersey against Zydus Pharmaceuticals (USA) Inc. and Zydus Lifesciences Limited (collectively, Zydus). In April 2023, the case against Zydus was dismissed without prejudice. In December 2022, the same entities filed a patent-infringement suit in the U.S. District Court for the District of New Jersey against Sun in connection with those companies’ respective ANDAs seeking approval to market generic versions of enzalutamide. In October 2023, the case against Sun was settled on terms not material to Pfizer. The generic manufacturers challenged the composition of matter patent, which expires in 2027, covering enzalutamide and pharmaceutical compositions thereof, for treating prostate cancer. A2. Legal Proceedings––Product Litigation 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. 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 against American Optical, Pfizer and certain of its previously owned subsidiaries are pending 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 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 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 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 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 Beginning in 2011, purported class actions relating to Lipitor were filed in various federal courts against, among others, Pfizer, certain Pfizer affiliates, and, in most of the actions, Ranbaxy Laboratories Limited (Ranbaxy) and certain Ranbaxy affiliates. 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 MDL 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 MDL plaintiffs. All plaintiffs 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 Court of Appeals. In 2017, the Court of Appeals reversed the District Court’s decisions and remanded the claims to the District Court. Also, in 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. EpiPen (Direct Purchaser) In February 2020, a lawsuit was filed in the U.S. District Court for the District of Kansas against Pfizer, its current and former affiliates King and Meridian, and various Mylan entities, on behalf of a purported U.S. nationwide class of direct purchaser plaintiffs who purchased EpiPen devices directly from the defendants. Plaintiffs in this action generally allege that Pfizer and Mylan conspired to delay market entry of generic EpiPen through the settlement of patent litigation regarding EpiPen, and thereby delayed market entry of generic EpiPen in violation of federal antitrust law. Plaintiffs seek treble damages for alleged overcharges for EpiPen since 2011. In July 2021, the District Court granted defendants’ motion to dismiss the direct purchaser complaint, without prejudice. In September 2021, plaintiffs filed an amended complaint. In August 2022, the District Court granted Pfizer’s motion to dismiss the complaint, and plaintiffs appealed to the U.S. Court of Appeals for the Tenth Circuit. In October 2023, the parties reached an agreement to settle the litigation on terms not material to Pfizer. The settlement is subject to court approval. Docetaxel • Personal Injury Actions A number of lawsuits have been filed against Hospira and Pfizer in various federal and state courts alleging that plaintiffs who were treated with Docetaxel developed permanent hair loss. The significant majority of the cases also name other defendants, including the manufacturer of the branded product, Taxotere. Plaintiffs seek compensatory and punitive damages. Additional lawsuits have been filed in which plaintiffs allege they developed blocked tear ducts following their treatment with Docetaxel. In 2016, the federal cases were transferred for coordinated pre-trial proceedings to a MDL in the U.S. District Court for the Eastern District of Louisiana. In 2022, the eye injury cases were transferred for coordinated pre-trial proceedings to a MDL in the U.S. District Court for the Eastern District of Louisiana. • Mississippi Attorney General Government Action In 2018, the Attorney General of Mississippi filed a complaint in Mississippi state court against the manufacturer of the branded product and eight other manufacturers including Pfizer and Hospira, alleging, with respect to Pfizer and Hospira, a failure to warn about a risk of permanent hair loss in violation of the Mississippi Consumer Protection Act. The action seeks civil penalties and injunctive relief. Zantac A number of lawsuits have been filed against Pfizer in various federal and state courts alleging that plaintiffs developed various types of cancer, or face an increased risk of developing cancer, purportedly as a result of the ingestion of Zantac. The significant majority of these cases also name other defendants that have historically manufactured and/or sold Zantac. Pfizer has not sold Zantac since 2006, and only sold an OTC version of the product. In 2006, Pfizer sold the consumer business that included its Zantac OTC rights to Johnson & Johnson and transferred the assets and liabilities related to Zantac OTC to Johnson & Johnson in connection with the sale. Plaintiffs in these cases seek compensatory and punitive damages. In February 2020, the federal actions were transferred for coordinated pre-trial proceedings to a MDL in the U.S. District Court for the Southern District of Florida (the Federal MDL Court). Plaintiffs in the MDL filed against Pfizer and many other defendants a master personal injury complaint, a consolidated consumer class action complaint alleging, among other things, claims under consumer protection statutes of all 50 states, and a medical monitoring complaint seeking to certify medical monitoring classes under the laws of 13 states. In December 2022, the Federal MDL Court granted defendants’ Daubert motions to exclude plaintiffs’ expert testimony and motion for summary judgment on general causation, which has resulted in the dismissal of all complaints in the litigation. Plaintiffs have appealed the Federal MDL Court’s rulings. In addition, (i) Pfizer has received service of Canadian class action complaints naming Pfizer and other defendants, and seeking compensatory and punitive damages for personal injury and economic loss, allegedly arising from the defendants’ sale of Zantac in Canada; and (ii) the State of New Mexico and the Mayor and City Council of Baltimore separately filed civil actions against Pfizer and many other defendants in state courts, alleging various state statutory and common law claims in connection with the defendants’ alleged sale of Zantac in those jurisdictions. In April 2021, a Judicial Council Coordinated Proceeding was created in the Superior Court of California in Alameda County to coordinate personal injury actions against Pfizer and other defendants filed in California state court. Coordinated proceedings have also been created in other state courts. The large majority of the state court cases have been filed in the Superior Court of Delaware in New Castle County. Chantix Beginning in August 2021, a number of putative class actions have been filed against Pfizer in various U.S. federal courts following Pfizer’s voluntary recall of Chantix due to the presence of a nitrosamine, N-nitroso-varenicline. Plaintiffs assert that they suffered economic harm purportedly as a res |
Segment, Geographic and Other R
Segment, Geographic and Other Revenue Information | 9 Months Ended |
Oct. 01, 2023 | |
Segment Reporting [Abstract] | |
Segment, Geographic and Other Revenue Information | Segment, Geographic and Other Revenue Information A. Segment Information We manage our commercial operations through two operating segments, each led by a single manager: Biopharma and Business Innovation, an operating segment established in the first quarter of 2023 that includes PC1, our contract development and manufacturing organization and a leading supplier of specialty active pharmaceutical ingredients, and Pfizer Ignite, a recently launched offering that provides strategic guidance and end-to-end R&D services to select innovative biotech companies that align with Pfizer’s R&D focus areas. B iopharma is the only reportable segment. Each operating segment has responsibility for its commercial activities. Regional commercial organizations market, distribute and sell our products and are supported by global platform functions that are responsible for the research, development, manufacturing and supply of our products and global corporate enabling functions. In consideration of planned future investments in oncology, including the proposed acquisition of Seagen, we are reorganizing our R&D operations. Beginning in July 2023, discovery to early- and late-phase clinical development for oncology is performed by a new end-to-end Oncology Research and Development (ORD) platform function and discovery to early- and late-phase clinical development for all remaining therapeutic areas is consolidated into the Pfizer Research and Development (PRD) platform function. ORD and PRD replace our former WRDM and Global Product Development (GPD) organizational design. Biopharma receives its R&D services from ORD and PRD. These services include IPR&D projects for new investigational products and additional indications for in-line products. Each operating segment 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. Other Business Activities and Reconciling Items–– Other business activities include the operating results of Business Innovation as well as certain pre-tax costs not allocated to our operating segment results, such as costs associated with: (i) R&D and medical expenses managed by our ORD and PRD organizations; (ii) corporate enabling functions and other corporate costs; (iii) overhead costs primarily associated with our manufacturing operations; and (iv) our share of earnings from Haleon/the Consumer Healthcare JV. Reconciling items include the following items, transactions and events that are not allocated to our operating segments: (i) all amortization of intangible assets; (ii) acquisition-related items ; and (iii) certain significant items, representing substantive and/or unusual, and in some cases recurring, items 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. Segment Assets–– We manage our assets on a total company basis, not by operating segment, as our operating assets are shared or commingled. Therefore, our chief operating decision maker does not regularly review any asset information by operating segment and, accordingly, we do not report asset information by operating segment. Total assets were $215 billion as of October 1, 2023 and $197 billion as of December 31, 2022. Selected Statement of Operations Information The following provides selected information by reportable segment: Three Months Ended Nine Months Ended Revenues Earnings (a) Revenues Earnings (a) (MILLIONS) October 1, October 2, October 1, October 2, October 1, October 2, October 1, October 2, Reportable Segment: Biopharma $ 12,930 $ 22,319 $ 7,545 $ 14,665 $ 43,320 $ 75,066 $ 25,484 $ 45,222 Other business activities (b) 302 319 (8,782) (4,007) 928 974 (14,387) (9,820) Reconciling Items: Amortization of intangible assets (1,179) (822) (3,466) (2,478) Acquisition-related items (227) (62) (778) (331) Certain significant items (c) (708) (773) (1,666) (3,095) $ 13,232 $ 22,638 $ (3,352) $ 9,001 $ 44,247 $ 76,040 $ 5,187 $ 29,498 (a) I ncome/(loss) from continuing operations before provision/(benefit) for taxes on income/(loss). Biopharma’s earnings include dividend income from our investment in ViiV of $30 million in the third quarter of 2023 and $112 million in the third quarter of 2022, and $213 million in the first nine months of 2023 and $237 million in the first nine months of 2022. (b) Other business activities include revenues and costs associated with Business Innovation and costs that we do not allocate to our operating segments, per above, including acquired IPR&D expenses in the periods presented. Earnings in the third quarter and first nine months of 2023 include approximately $5.6 billion and $5.8 billion, respectively, of inventory write-offs and related charges to Cost of sales mainly due to lower-than-expected demand for our COVID-19 products. Earnings in the first nine months of 2022 included COVID-19-related charges of approximately $0.9 billion to Cost of sales , composed of (i) inventory write-offs of approximately $0.5 billion related to COVID-19 products that exceeded or were expected to exceed their approved shelf-lives prior to being used and (ii) charges of approximately $0.4 billion, primarily related to excess raw materials for Paxlovid recorded in the third quarter of 2022. (c) Certain significant items are substantive and/or unusual, and in some cases recurring, items (as noted above). Earnings in the first nine months of 2023 include, among other items, net losses on equity securities of $711 million recorded in Other (income)/deductions––net . Earnings in the first nine months of 2022 included, among other items: (i) net losses on equity securities of $1.3 billion recorded in Other (income)/deductions––net and (ii) restructuring charges/(credits) and implementation costs and additional depreciation—asset restructuring of $701 million ($344 million recorded in Selling, informational and administrative expense s and the remaining amount primarily recorded in Restructuring charges and certain acquisition-related costs ). See Note 4 . B. Geographic Information The following summarizes revenues by geographic area: Three Months Ended Nine Months Ended (MILLIONS) October 1, October 2, % October 1, October 2, % United States $ 7,804 $ 13,851 (44) $ 22,497 $ 33,991 (34) Developed Europe 1,981 3,136 (37) 7,217 14,705 (51) Developed Rest of World 1,073 2,351 (54) 4,852 10,671 (55) Emerging Markets 2,373 3,300 (28) 9,681 16,673 (42) Revenues $ 13,232 $ 22,638 (42) $ 44,247 $ 76,040 (42) In May 2023, we and our collaboration partner, BioNTech, amended our contract with the EC to deliver COVID-19 vaccines to the EU. The amended agreement includes rephasing of delivery of doses annually through 2026 and an aggregate volume reduction, providing additional flexibility for EU member states. The EC will maintain access to future adapted COVID-19 vaccines and the ability to donate doses, in alignment with the original agreement. See Note 13C . C. Other Revenue Information Significant Customers–– For information on our significant wholesale customers, see Note 17C in our 2022 Form 10-K. Additionally, revenues from the U.S. government represented 7% of total revenues for the nine months ended October 1, 2023 and primarily represent sales of Paxlovid and Comirnaty. Revenues from the U.S. government represented 38% and 27% of total revenues for the three and nine months ended October 2, 2022, respectively, and primarily represented sales of Paxlovid and Comirnaty. Accounts receivable from the U.S. government represented 4% of total trade accounts receivable as of December 31, 2022 and primarily related to sales of Paxlovid and Comirnaty. Due to the transition of Comirnaty and the expected transition of Paxlovid to commercial market sales in the second half of 2023, revenues from the U.S. government for the three months ended October 1, 2023 and accounts receivable from the U.S. government as of October 1, 2023 were not material. Significant Product Revenues The following provides detailed revenue information for several of our major products: (MILLIONS) Three Months Ended Nine Months Ended PRODUCT PRIMARY INDICATION OR CLASS Oct. 1, 2023 Oct. 2, 2022 Oct. 1, 2023 Oct. 2, 2022 TOTAL REVENUES $ 13,232 $ 22,638 $ 44,247 $ 76,040 GLOBAL BIOPHARMACEUTICALS BUSINESS (BIOPHARMA) $ 12,930 $ 22,319 $ 43,320 $ 75,066 Primary Care $ 6,287 $ 15,846 $ 23,602 $ 55,676 Comirnaty direct sales and alliance revenues (a) Active immunization to prevent COVID-19 1,307 4,402 5,859 26,477 Eliquis alliance revenues and direct sales Nonvalvular atrial fibrillation, deep vein thrombosis, pulmonary embolism 1,498 1,464 5,135 5,001 Prevnar family Active immunization to prevent pneumonia, invasive disease and otitis media caused by Streptococcus pneumoniae 1,854 1,607 4,835 4,601 Paxlovid COVID-19 in certain high-risk patients 202 7,514 4,414 17,099 Nurtec ODT/Vydura Acute treatment of migraine and prevention of episodic migraine 233 — 646 1 Abrysvo Active immunization to prevent RSV infection 375 — 375 — Premarin family Symptoms of menopause 92 110 299 327 BMP2 Bone graft for spinal fusion 82 58 252 201 FSME-IMMUN/TicoVac Active immunization to prevent tick-borne encephalitis disease 91 67 237 177 Nimenrix Active immunization against invasive meningococcal ACWY disease 43 79 121 221 Trumenba Active immunization to prevent invasive disease caused by Neisseria meningitidis group B 58 60 108 108 All other Primary Care Various 452 485 1,321 1,463 Specialty Care $ 3,757 $ 3,404 $ 11,021 $ 10,267 Vyndaqel family ATTR-CM and polyneuropathy 892 602 2,360 1,766 Xeljanz RA, PsA, UC, active polyarticular course juvenile idiopathic arthritis, ankylosing spondylitis 503 502 1,210 1,304 Enbrel (Outside the U.S. and Canada) RA, juvenile idiopathic arthritis, PsA, plaque psoriasis, pediatric plaque psoriasis, ankylosing spondylitis and nonradiographic axial spondyloarthritis 208 230 627 767 Sulperazon Bacterial infections 122 178 619 598 Ig Portfolio (b) Various 140 124 428 356 Genotropin Replacement of human growth hormone 158 90 379 261 Zavicefta Bacterial infections 130 98 378 302 Inflectra Crohn’s disease, pediatric Crohn’s disease, UC, pediatric UC, RA in combination with methotrexate, ankylosing spondylitis, PsA and plaque psoriasis 121 131 373 403 BeneFIX Hemophilia B 107 99 321 325 Medrol Anti-inflammatory glucocorticoid 89 79 263 235 Zithromax Bacterial infections 60 71 254 250 Oxbryta Sickle cell disease 85 — 232 — Somavert Acromegaly 69 70 200 202 Refacto AF/Xyntha Hemophilia A 61 58 177 188 Fragmin Treatment/prevention of venous thromboembolism 57 60 175 202 Vfend Fungal infections 46 51 153 171 Cresemba Fungal infections 40 41 141 114 Bicillin Bacterial infections 37 36 134 108 Cibinqo Atopic dermatitis 37 11 91 17 All other Anti-infectives Various 270 298 820 900 All other Specialty Care Various 527 575 1,687 1,799 Oncology $ 2,885 $ 3,070 $ 8,696 $ 9,124 Ibrance HR-positive/HER2-negative metastatic breast cancer 1,244 1,283 3,635 3,841 Xtandi alliance revenues mCRPC, nmCRPC, mCSPC 313 320 877 878 Inlyta Advanced RCC 252 252 773 760 (MILLIONS) Three Months Ended Nine Months Ended PRODUCT PRIMARY INDICATION OR CLASS Oct. 1, 2023 Oct. 2, 2022 Oct. 1, 2023 Oct. 2, 2022 Bosulif Philadelphia chromosome–positive chronic myelogenous leukemia 160 141 463 425 Lorbrena ALK-positive metastatic NSCLC 159 99 393 247 Zirabev Treatment of mCRC; unresectable, locally advanced, recurrent or metastatic NSCLC; recurrent glioblastoma; metastatic RCC; and persistent, recurrent or metastatic cervical cancer 100 146 335 432 Ruxience Non-hodgkin’s lymphoma, chronic lymphocytic leukemia, granulomatosis with polyangiitis (Wegener’s Granulomatosis) and microscopic polyangiitis 88 120 302 357 Xalkori ALK-positive and Proto-Oncogene 1, Receptor Tyrosine Kinase-positive advanced NSCLC 86 118 283 362 Retacrit Anemia 82 87 262 308 Aromasin Post-menopausal early and advanced breast cancer 76 66 225 187 Bavencio alliance revenues (c) Locally advanced or metastatic urothelial carcinoma; metastatic Merkel cell carcinoma; immunotherapy and tyrosine kinase inhibitor combination for patients with advanced RCC 18 73 186 198 Besponsa Relapsed or refractory B-cell acute lymphoblastic leukemia 54 55 171 164 Braftovi In combination with Mektovi for metastatic melanoma in patients with a BRAF V600E/K mutation and, in combination with Erbitux ® (cetuximab) (d) , for the treatment of BRAF V600E -mutant mCRC after prior therapy 56 58 156 156 Sutent Advanced and/or metastatic RCC, adjuvant RCC, refractory gastrointestinal stromal tumors (after disease progression on, or intolerance to, imatinib mesylate) and advanced pancreatic neuroendocrine tumor 42 75 136 287 Mektovi In combination with Braftovi for metastatic melanoma in patients with a BRAF V600E/K mutation 45 45 127 129 Trazimera HER2-positive breast cancer and metastatic stomach cancers — 51 67 149 All other Oncology Various 110 80 304 243 BUSINESS INNOVATION (e) $ 302 $ 319 $ 928 $ 974 Pfizer CentreOne (f) Various 291 318 903 972 Pfizer Ignite Various 10 1 25 1 Total Alliance revenues included above $ 1,645 $ 1,689 $ 5,672 $ 6,320 (a) Excludes revenues for certain Comirnaty-related manufacturing activities performed on behalf of BioNTech, which are included in the PC1 contract development and manufacturing organization. See footnote (f) below. (b) Immunoglobulin (Ig) portfolio includes the revenues from Panzyga, Octagam and Cutaquig. (c) In March 2023, it was announced that our alliance with Merck KGaA to co-develop and co-commercialize Bavencio (avelumab) would terminate. Effective June 30, 2023, Merck KGaA took full control of the global commercialization of Bavencio. Beginning in the third quarter of 2023, the related profit share was replaced by a 15% royalty to Pfizer on net sales of Bavencio, which is recorded in Other (income)/deductions––net . We and Merck KGaA will continue to operationalize our respective ongoing clinical trials for Bavencio; and Merck KGaA will control all future R&D activities. (d) Erbitux ® is a registered trademark of ImClone LLC. (e) See Note 13A above for information about Business Innovation. Prior-period financial information has been revised to reflect the current period presentation. (f) PC1 includes revenues from our contract manufacturing, including certain Comirnaty-related manufacturing activities performed on behalf of BioNTech ($11 million for the first nine months of 2023 and $108 million for the first nine months of 2022, respectively), and revenues from our active pharmaceutical ingredient sales operation, as well as revenues related to our manufacturing and supply agreements with former legacy Pfizer businesses/partnerships. Remaining Performance Obligations–– Contracted revenue expected to be recognized from remaining performance obligations for firm orders in long-term contracts to supply Comirnaty to our customers totaled approximately $9 billion as of October 1, 2023, which includes amounts received in advance and deferred, as well as amounts that will be invoiced as we deliver these products to our customers in future periods. Of this amount, current contract terms provide for expected delivery of product with contracted revenue from 2023 through 2026, the timing of which may be renegotiated. Remaining performance obligations are based on foreign exchange rates as of the end of our fiscal third quarter of 2023 and exclude arrangements with an original expected contract duration of less than one year. Deferred Revenues–– Our deferred revenues primarily relate to advance payments received or receivable from various government or government sponsored customers in international markets for supply of Comirnaty. The deferred revenues related to Comirnaty totaled $3.2 billion as of October 1, 2023, with $2.1 billion and $1.0 billion recorded in current liabilities and noncurrent liabilities, respectively. The deferred revenues related to Comirnaty totaled $2.5 billion as of December 31, 2022, with $2.4 billion and $77 million recorded in current liabilities and noncurrent liabilities, respectively. The increase in Comirnaty deferred revenues during the first nine months of 2023 was primarily the result of additional advance payments received as we entered into amended contracts and the impact of foreign exchange, partially offset by amounts recognized in Revenues as we delivered the products to our customers. During the third quarter and first nine months of 2023, we recognized revenue of approximately $140 million and $2.1 billion, respectively, that was included in the balance of Comirnaty deferred revenues as of December 31, 2022. The Comirnaty deferred revenues as of October 1, 2023 will be recognized in Revenues proportionately as we transfer control of the product to our customers and satisfy our performance obligation under the contracts, with the amounts included in current liabilities expected to be recognized in Revenues within the next 12 months, and the amounts included in noncurrent liabilities expected to be recognized in Revenues from 2024 through 2026. Deferred revenues associated with contracts for other products were not significant as of October 1, 2023 or December 31, 2022. |
Subsequent Event
Subsequent Event | 9 Months Ended |
Oct. 01, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event Amended Paxlovid Supply Agreement with the U.S. Government–– On October 13, 2023, we announced an amended agreement with the U.S. government, which will facilitate the expected transition of Paxlovid to traditional commercial markets in November 2023, with prices to be negotiated with commercial payers and a copay assistance program for eligible privately insured patients, as the U.S. government begins to discontinue the distribution of EUA-labeled Paxlovid. We will ensure commercial readiness by providing NDA-labeled commercial supply to all channels by the end of 2023. However, EUA-labeled Paxlovid will remain available free-of-charge to all eligible patients until the end of 2023, and therefore, we expect only minimal uptake of NDA-labeled commercial product before January 1, 2024. Components of this agreement include: (i) a non-cash return of any remaining EUA-labeled U.S. government inventory at the end of 2023, estimated to be 7.9 million treatment courses, with an associated revenue reversal of approximately $4.2 billion to be recorded in the fourth quarter of 2023; (ii) the conversion of those remaining EUA-labeled treatment courses previously purchased by the U.S. government to a volume-based credit, which will support continued access to Paxlovid through a U.S. government patient assistance program operated by Pfizer (which will provide the estimated 7.9 million treatment courses of FDA-approved, NDA-labeled Paxlovid free of charge to all eligible uninsured, Medicare and Medicaid patients through 2024, and to eligible uninsured and underinsured patients through 2028); and (iii) the creation in 2024 of a U.S. Strategic National Stockpile of 1.0 million treatment courses to enable future pandemic preparedness through 2028, to be managed and supplied by Pfizer at no cost to the U.S. government or taxpayers. While we will recognize revenue as the estimated 8.9 million treatment courses are delivered, there is no cash compensation for these treatment courses. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2023 | Oct. 02, 2022 | Oct. 01, 2023 | Oct. 02, 2022 | |
Pay vs Performance Disclosure | ||||
Income attributable to shareholders | $ (2,382) | $ 8,608 | $ 5,488 | $ 26,378 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Oct. 01, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Oct. 01, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation We prepared these condensed consolidated financial statements in conformity with U.S. GAAP, consistent in all material respects with those applied in our 2022 Form 10-K. As permitted under the SEC requirements for interim reporting, certain footnotes or other financial information have been condensed or omitted. These 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 Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in our 2022 Form 10-K . 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. Pfizer’s fiscal quarter-end for subsidiaries operating outside the U.S. is as of and for the three and nine months ended August 27, 2023 and August 28, 2022, and for U.S. subsidiaries is as of and for the three and nine months ended October 1, 2023 and October 2, 2022. We manage our commercial operations through two operating segments, each led by a single manager: Biopharma and Business Innovation. Biopharma is the only reportable segment. See Note 13A below and Note 17A in our 2022 Form 10-K . Business development activities impacted financial results in the periods presented. In March 2023, we and Seagen announced that the companies entered into an agreement under which we will acquire Seagen, a global biotechnology company that discovers, develops and commercializes transformative cancer medicines, for $229 in cash per Seagen share for a total enterprise value of approximately $43 billion. We expect to finance the transaction substantially through $31 billion of long-term debt issued in May 2023 (see Note 7D ), and the balance from a combination of short-term financing and existing cash. The transaction was approved by Seagen’s shareholders in May 2023. In October 2023, we received unconditional antitrust clearance from the EC on the proposed acquisition. The transaction is expected to close in late 2023 or early 2024, and remains subject to customary closing conditions, including receipt of required regulatory approvals. See Note 2 below, as well as Notes 1A and 2 in our 2022 Form 10-K. We have made certain reclassification adjustments to conform prior-period amounts to the current presentation for segment reporting. |
New Accounting Standards Adopted in 2023 | New Accounting Standards Adopted in 2023 On January 1, 2023, we adopted a new accounting standard for supplier finance programs which requires increased disclosures in the notes to our financial statements. See Note 8C . In the second quarter of 2023, we adopted new accounting standards on reference rate reform that provide temporary optional expedients and exceptions to the guidance for contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate that were discontinued after June 30, 2023. We applied certain of the optional expedients related to hedge accounting relationships. The main purpose of the expedients is to allow hedge accounting to continue uninterrupted and make it easier to apply the requirements to maintain hedge accounting during the transition period through December 31, 2024. |
Revenues and Trade Accounts Receivable | Revenues and Trade Accounts Receivable Customers–– Our prescription biopharmaceutical products, with the exception of Paxlovid, are sold principally to wholesalers, but we also sell directly to retailers, hospitals, clinics, government agencies and pharmacies. We principally sell Paxlovid to government agencies and distributors. In the U.S., we primarily sell our vaccines directly to the federal government (including the CDC), wholesalers, individual provider offices, retail pharmacies and integrated delivery systems. Outside the U.S., we primarily sell our vaccines to government and non-government institutions. Deductions from Revenues–– Our accruals for Medicare, Medicaid and related state program and performance-based contract rebates, chargebacks, sales allowances and sales returns and cash discounts are as follows: (MILLIONS) October 1, December 31, 2022 Reserve against Trade accounts receivable, less allowance for doubtful accounts $ 1,599 $ 1,200 Other current liabilities : Accrued rebates 5,083 4,479 Other accruals 436 430 Other noncurrent liabilities 640 612 Total accrued rebates and other sales-related accruals $ 7,757 $ 6,722 Trade Accounts Receivable–– Trade accounts receivable are stated at their net realizable value. The allowance for credit losses reflects our 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. When management becomes aware of certain customer-specific factors that impact credit risk, specific allowances for these known troubled accounts are recorded. |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Tables) | 9 Months Ended |
Oct. 01, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Balance Sheet Classification of Accruals | Our accruals for Medicare, Medicaid and related state program and performance-based contract rebates, chargebacks, sales allowances and sales returns and cash discounts are as follows: (MILLIONS) October 1, December 31, 2022 Reserve against Trade accounts receivable, less allowance for doubtful accounts $ 1,599 $ 1,200 Other current liabilities : Accrued rebates 5,083 4,479 Other accruals 436 430 Other noncurrent liabilities 640 612 Total accrued rebates and other sales-related accruals $ 7,757 $ 6,722 |
Acquisitions, Divestitures, E_2
Acquisitions, Divestitures, Equity-Method Investment and Research and Development Arrangement (Tables) | 9 Months Ended |
Oct. 01, 2023 | |
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, Haleon/the Consumer Healthcare JV, for the three and nine months ending June 30, 2023, the most recent period available, and for the three and nine months ending June 30, 2022, is as follows: Three Months Ended Nine Months Ended (MILLIONS) June 30, June 30, June 30, June 30, Net sales $ 3,490 $ 3,218 $ 10,379 $ 10,164 Cost of sales (1,323) (1,196) (4,211) (3,830) Gross profit $ 2,167 $ 2,022 $ 6,168 $ 6,334 Income from continuing operations 403 226 1,133 1,303 Net income 403 226 1,133 1,303 Income attributable to shareholders 382 210 1,066 1,256 |
Restructuring Charges and Oth_2
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives (Tables) | 9 Months Ended |
Oct. 01, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Acquisitions and Cost-Reduction/Productivity Initiatives | The following summarizes costs and credits for acquisitions and cost-reduction/productivity initiatives: Three Months Ended Nine Months Ended (MILLIONS) October 1, October 2, October 1, October 2, Restructuring charges/(credits): Employee terminations $ 16 $ 158 $ 77 $ 293 Asset impairments 40 17 45 44 Exit costs/(credits) 15 2 44 31 Restructuring charges/(credits) (a) 71 177 165 368 Transaction costs (b) 5 — 14 42 Integration/pre-integration costs and other (c) 78 22 198 170 Restructuring charges and certain acquisition-related costs 155 199 377 580 Net periodic benefit costs/(credits) recorded in Other (income)/deductions––net — — (7) (5) Additional depreciation––asset restructuring recorded in our condensed consolidated statements of operations, mainly in Cost of sales (d) 5 7 28 22 Implementation costs recorded in our condensed consolidated statements of operations as follows (e) : Cost of sales 16 14 43 40 Selling, informational and administrative expenses 71 136 196 344 Research and development expenses 29 — 59 — Total implementation costs 116 150 298 384 Total costs associated with acquisitions and cost-reduction/productivity initiatives $ 276 $ 357 $ 696 $ 982 (a) Primarily represents cost-reduction initiatives. Restructuring charges/(credits) associated with Biopharma: charges of $1 million and credits of $22 million for the three and nine months ended October 1, 2023, respectively, and charges of $62 million and $108 million for the three and nine months ended October 2, 2022, respectively. (b) Represents external costs for banking, legal, accounting and other similar services. (c) Represents external, incremental costs directly related to integrating acquired businesses and our proposed acquisition of Seagen, such as expenditures for consulting and the integration of systems and processes, and certain other qualifying costs. In the nine months ended October 1, 2023, integration/pre-integration costs and other were mostly related to our acquisitions of Biohaven and GBT and our proposed acquisition of Seagen. In the nine months ended October 2, 2022, integration costs and other were mostly related to our acquisition of Arena, including $138 million in payments to Arena employees in the first quarter of 2022 for the fair value of previously unvested long-term incentive awards that was recognized as post-closing compensation expense. (d) Represents the impact of changes in the estimated useful lives of assets involved in restructuring actions. (e) Represents external, incremental costs directly related to implementing our non-acquisition-related cost-reduction/productivity initiatives. |
Schedule of Components and Changes in Restructuring Accruals | The following summarizes the components and changes in restructuring accruals: (MILLIONS) Employee Asset Exit Costs Accrual Balance, December 31, 2022 (a) $ 1,196 $ — $ 8 $ 1,204 Provision/(credit) 77 45 44 165 Utilization and other (b) (700) (45) (39) (784) Balance, October 1, 2023 (c) $ 573 $ — $ 12 $ 585 (a) Included in Other current liabilities ($991 million) and Other noncurrent liabilities ($213 million). (b) Other activity includes adjustments for foreign currency translation that are not material. (c) Included in Other current liabilities ($447 million) and Other noncurrent liabilities ($137 million). |
Other (Income)_Deductions_Net (
Other (Income)/Deductions—Net (Tables) | 9 Months Ended |
Oct. 01, 2023 | |
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) October 1, October 2, October 1, October 2, Interest income $ (523) $ (70) $ (1,015) $ (114) Interest expense 695 311 1,521 925 Net interest expense (a) 173 240 505 811 Royalty-related income (260) (239) (737) (628) Net (gains)/losses on asset disposals — 7 (2) 6 Net (gains)/losses recognized during the period on equity securities (b) 393 112 709 1,353 Income from collaborations, out-licensing arrangements and sales of compound/product rights (10) (4) (84) (17) Net periodic benefit costs/(credits) other than service costs (92) (306) (260) (294) Certain legal matters, net (c) 71 77 246 175 Certain asset impairments (d) — 200 264 200 Haleon/Consumer Healthcare JV equity method (income)/loss (e) (131) 51 (354) (283) Other, net (f) (222) (198) (643) (260) Other (income)/deductions––net $ (79) $ (59) $ (356) $ 1,063 (a) The decrease in net interest expense in the third quarter and first nine months of 2023 reflects higher interest expense driven by our $31 billion aggregate principal amount of senior unsecured notes issued in May 2023 as part of the financing for our proposed acquisition of Seagen, which was more than offset by higher interest income on the investment of the net proceeds from the debt issuance. (b) The net losses in the third quarter of 2023 include, among other things, unrealized losses of $312 million related to our investments in Cerevel Therapeutics Holdings, Inc. (Cerevel) and Allogene Therapeutics, Inc (Allogene). The net losses in the first nine months of 2023 include, among other things, unrealized losses of $606 million related to our investments in BioNTech, Cerevel and Allogene. The net losses in the first nine months of 2022 included, among other things, unrealized losses of $974 million related to our investments in BioNTech, Cerevel and Arvinas. (c) The third quarter of 2023 includes legal obligations related to pre-acquisition matters and certain product liability expenses related to products discontinued and/or divested by Pfizer. The first nine months of 2023 primarily includes certain product liability and other legal expenses related to products discontinued and/or divested by Pfizer and legal obligations related to pre-acquisition matters. The third quarter and first nine months of 2022 primarily included certain product liability and other legal expenses related to products discontinued and/or divested by Pfizer. (d) The first nine months of 2023 primarily represents intangible asset impairment charges, including $128 million associated with Other business activities, related to IPR&D and developed technology rights for acquired software assets and reflects unfavorable pivotal trial results and updated commercial forecasts, and $120 million associated with our Biopharma segment resulting from the discontinuation of a study related to an out-licensed IPR&D asset for the treatment of prostate cancer, acquired in our Array BioPharma Inc. (Array) acquisition. The third quarter and first nine months of 2022 represented an intangible asset impairment charge associated with our Biopharma segment, representing an IPR&D asset for the unapproved indication of symptomatic dilated cardiomyopathy due to a mutation of the gene encoding the lamin A/C protein, acquired in our Array acquisition, and was a result of the Phase 3 trial reaching futility at a pre-planned interim analysis. (e) See Note 2C . (f) The third quarter and first nine months of 2023 includes, among other things, a $222 million gain on the divestiture of our early-stage rare disease gene therapy portfolio to Alexion. The first nine months of 2023 also includes, among other things, dividend income of $213 million from our investment in ViiV and $211 million from our investment in Nimbus resulting from Takeda Pharmaceutical Company Limited’s acquisition of Nimbus’s oral, selective allosteric tyrosine kinase 2 (TYK2) inhibitor program subsidiary. |
Schedule of Impaired Intangible Assets | Additional information about the intangible assets that were impaired during 2023 follows: Nine Months Ended Fair Value (a) October 1, 2023 (MILLIONS) Amount Level 1 Level 2 Level 3 Impairment Intangible assets––Licensing agreements and other (b) $ — $ — $ — $ — $ 120 Intangible assets––IPR&D (b) — — — — 94 Intangible assets––Developed technology rights (b) — — — — 34 Total $ — $ — $ — $ — $ 248 (a) The fair value amount is presented as of the date of impairment, as this asset is not measured at fair value on a recurring basis. See also Note 1E in our 2022 Form 10-K . (b) Reflects intangible assets written down to fair value in 2023. 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 for 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 |
Tax Matters (Tables)
Tax Matters (Tables) | 9 Months Ended |
Oct. 01, 2023 | |
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) October 1, October 2, October 1, October 2, Foreign currency translation adjustments, net (a) $ (28) $ 20 $ (33) $ (165) Unrealized holding gains/(losses) on derivative financial instruments, net 80 47 108 177 Reclassification adjustments for (gains)/losses included in net income/(loss) (5) (72) (16) (97) 75 (25) 91 80 Unrealized holding gains/(losses) on available-for-sale securities, net (10) (97) 4 (175) Reclassification adjustments for (gains)/losses included in net income/(loss) 6 76 (55) 137 (4) (21) (51) (38) Reclassification adjustments related to amortization of prior service costs and other, net (7) (7) (21) (23) Reclassification adjustments related to curtailments of prior service costs and other, net (1) — (3) (3) (7) (8) (24) (26) Tax provision/(benefit) on other comprehensive income/(loss) $ 36 $ (33) $ (17) $ (149) (a) Taxes are not provided for foreign currency translation adjustments relating to investments in international subsidiaries that we intend to hold indefinitely. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss, Excluding Noncontrolling Interests (Tables) | 9 Months Ended |
Oct. 01, 2023 | |
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) Foreign Currency Translation Adjustments (a) Derivative Financial Instruments Available-For-Sale Securities Prior Service (Costs)/Credits and Other Accumulated Other Comprehensive Income/(Loss) Balance, December 31, 2022 $ (8,360) $ (412) $ 220 $ 248 $ (8,304) Other comprehensive income/(loss) (b) 274 501 (360) (78) 338 Balance, October 1, 2023 $ (8,086) $ 89 $ (140) $ 170 $ (7,966) (a) Amounts do not include foreign currency translation adjustments attributable to noncontrolling interests. (b) Foreign currency translation adjustments include net losses related to our equity-method investment in Haleon (see Note 2C ) and the impact of our net investment hedging program. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Oct. 01, 2023 | |
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 on a Recurring Basis and Fair Value Hierarchy, using a Market Approach: October 1, 2023 December 31, 2022 (MILLIONS) Total Level 1 Level 2 Total Level 1 Level 2 Financial assets: Short-term investments Equity securities with readily determinable fair values: Money market funds $ 13,193 $ — $ 13,193 $ 1,588 $ — $ 1,588 Available-for-sale debt securities: Government and agency—non-U.S. 18,236 — 18,236 15,915 — 15,915 Government and agency—U.S. 5,832 — 5,832 1,313 — 1,313 Corporate and other 2,179 — 2,179 1,514 — 1,514 26,247 — 26,247 18,743 — 18,743 Total short-term investments 39,440 — 39,440 20,331 — 20,331 Other current assets Derivative assets: Interest rate contracts 1 — 1 — — — Foreign exchange contracts 712 — 712 714 — 714 Total other current assets 713 — 713 714 — 714 Long-term investments Equity securities with readily determinable fair values (a) 2,118 2,112 6 2,836 2,823 13 Available-for-sale debt securities: Government and agency—non-U.S. 138 — 138 280 — 280 Corporate and other 73 — 73 72 — 72 211 — 211 352 — 352 Total long-term investments 2,329 2,112 217 3,188 2,823 365 Other noncurrent assets Derivative assets: Interest rate contracts 1 — 1 — — — Foreign exchange contracts 413 — 413 364 — 364 Total derivative assets 414 — 414 364 — 364 Insurance contracts (b) 718 — 718 665 — 665 Total other noncurrent assets 1,132 — 1,132 1,028 — 1,028 Total assets $ 43,613 $ 2,112 $ 41,501 $ 25,261 $ 2,823 $ 22,439 Financial liabilities: Other current liabilities Derivative liabilities: Interest rate contracts $ 4 $ — $ 4 $ 10 $ — $ 10 Foreign exchange contracts 193 — 193 694 — 694 Total other current liabilities 197 — 197 704 — 704 Other noncurrent liabilities Derivative liabilities: Interest rate contracts 533 — 533 321 — 321 Foreign exchange contracts 738 — 738 864 — 864 Total other noncurrent liabilities 1,270 — 1,270 1,185 — 1,185 Total liabilities $ 1,468 $ — $ 1,468 $ 1,889 $ — $ 1,889 (a) Long-term equity securities of $127 million as of October 1, 2023 and $143 million as of December 31, 2022 were held in restricted trusts for U.S. non-qualified employee benefit plans. (b) Includes life insurance policies held in restricted trusts for U.S. non-qualified employee benefit plans. The underlying invested assets in these contracts are marketable securities, which are carried at fair value, with changes in fair value recognized in Other (income)/deductions—net (see Note 4 ). |
Investments by Classification Type | The following summarizes our investments by classification type: (MILLIONS) October 1, December 31, 2022 Short-term investments Equity securities with readily determinable fair values (a) $ 13,193 $ 1,588 Available-for-sale debt securities 26,247 18,743 Held-to-maturity debt securities 1,593 1,985 Total Short-term investments $ 41,033 $ 22,316 Long-term investments Equity securities with readily determinable fair values (b) $ 2,118 $ 2,836 Available-for-sale debt securities 211 352 Held-to-maturity debt securities 50 48 Private equity securities at cost (b) 834 800 Total Long-term investments $ 3,214 $ 4,036 Equity-method investments 11,025 11,033 Total long-term investments and equity-method investments $ 14,239 $ 15,069 Held-to-maturity cash equivalents $ 384 $ 679 (a) Represent money market funds primarily invested in U.S. Treasury and government debt. (b) Represent investments in the life sciences sector. |
Schedule of Held-to-maturity Securities | Our investment portfolio consists of investment-grade debt securities issued across diverse governments, corporate and financial institutions: October 1, 2023 December 31, 2022 Gross Unrealized Contractual or Estimated Maturities (in Years) Gross Unrealized (MILLIONS) Amortized Cost Gains Losses Fair Value Within 1 Over 1 Over 5 Amortized Cost Gains Losses Fair Value Available-for-sale debt securities Government and agency –– non-U.S. $ 18,528 $ 16 $ (170) $ 18,374 $ 18,236 $ 138 $ — $ 15,946 $ 297 $ (48) $ 16,195 Government and agency––U.S. 5,833 — (1) 5,832 5,832 — — 1,313 — — 1,313 Corporate and other 2,257 — (6) 2,252 2,179 73 — 1,584 7 (4) 1,586 Held-to-maturity debt securities Time deposits and other 944 — — 944 898 35 11 1,171 — — 1,171 Government and agency –– non-U.S. 1,084 — — 1,084 1,080 3 1 1,542 — — 1,542 Total debt securities $ 28,646 $ 16 $ (176) $ 28,486 $ 28,225 $ 249 $ 12 $ 21,556 $ 304 $ (53) $ 21,807 |
Schedule of Available-for-sale Securities | Our investment portfolio consists of investment-grade debt securities issued across diverse governments, corporate and financial institutions: October 1, 2023 December 31, 2022 Gross Unrealized Contractual or Estimated Maturities (in Years) Gross Unrealized (MILLIONS) Amortized Cost Gains Losses Fair Value Within 1 Over 1 Over 5 Amortized Cost Gains Losses Fair Value Available-for-sale debt securities Government and agency –– non-U.S. $ 18,528 $ 16 $ (170) $ 18,374 $ 18,236 $ 138 $ — $ 15,946 $ 297 $ (48) $ 16,195 Government and agency––U.S. 5,833 — (1) 5,832 5,832 — — 1,313 — — 1,313 Corporate and other 2,257 — (6) 2,252 2,179 73 — 1,584 7 (4) 1,586 Held-to-maturity debt securities Time deposits and other 944 — — 944 898 35 11 1,171 — — 1,171 Government and agency –– non-U.S. 1,084 — — 1,084 1,080 3 1 1,542 — — 1,542 Total debt securities $ 28,646 $ 16 $ (176) $ 28,486 $ 28,225 $ 249 $ 12 $ 21,556 $ 304 $ (53) $ 21,807 |
Contractual Maturities of Available-for-sale and Held-to-maturity Debt Securities | Our investment portfolio consists of investment-grade debt securities issued across diverse governments, corporate and financial institutions: October 1, 2023 December 31, 2022 Gross Unrealized Contractual or Estimated Maturities (in Years) Gross Unrealized (MILLIONS) Amortized Cost Gains Losses Fair Value Within 1 Over 1 Over 5 Amortized Cost Gains Losses Fair Value Available-for-sale debt securities Government and agency –– non-U.S. $ 18,528 $ 16 $ (170) $ 18,374 $ 18,236 $ 138 $ — $ 15,946 $ 297 $ (48) $ 16,195 Government and agency––U.S. 5,833 — (1) 5,832 5,832 — — 1,313 — — 1,313 Corporate and other 2,257 — (6) 2,252 2,179 73 — 1,584 7 (4) 1,586 Held-to-maturity debt securities Time deposits and other 944 — — 944 898 35 11 1,171 — — 1,171 Government and agency –– non-U.S. 1,084 — — 1,084 1,080 3 1 1,542 — — 1,542 Total debt securities $ 28,646 $ 16 $ (176) $ 28,486 $ 28,225 $ 249 $ 12 $ 21,556 $ 304 $ (53) $ 21,807 |
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, held at the reporting date: Three Months Ended Nine Months Ended (MILLIONS) October 1, October 2, October 1, October 2, Net (gains)/losses recognized during the period on equity securities (a) $ 393 $ 112 $ 709 $ 1,353 Less: Net (gains)/losses recognized during the period on equity securities sold during the period (1) (5) (48) (84) Net unrealized (gains)/losses during the reporting period on equity securities still held at the reporting date (b) $ 394 $ 116 $ 757 $ 1,436 (a) Reported in Other (income)/deductions –– net. See Note 4 . (b) Included in net unrealized (gains)/losses are observable price changes on equity securities without readily determinable fair values. As of October 1, 2023, there were cumulative impairments and downward adjustments of $188 million and upward adjustments of $213 million. Impairments, downward and upward adjustments were not significant in the third quarters and first nine months of 2023 and 2022. |
Schedule of Short-term Borrowings | Short-term borrowings include: (MILLIONS) October 1, December 31, 2022 Current portion of long-term debt, principal amount $ 2,250 $ 2,550 Other short-term borrowings, principal amount (a) 288 385 Total short-term borrowings, principal amount 2,538 2,935 Net fair value adjustments 10 10 Total Short-term borrowings, including current portion of long-term debt , carried at historical proceeds, as adjusted $ 2,548 $ 2,945 (a) Primarily includes cash collateral. See Note 7F . |
Schedule of Principal Amounts of Senior Unsecured Long-Term Debt and Adjustments | In May 2023, we issued, through our wholly-owned finance subsidiary, PIE, the following senior unsecured notes as part of the financing for our proposed acquisition of Seagen (a), (b) : (MILLIONS) Principal Interest Rate Maturity Date October 1, 4.65% (c) May 19, 2025 $ 3,000 4.45% (c) May 19, 2026 3,000 4.45% (c) May 19, 2028 4,000 4.65% (c) May 19, 2030 3,000 4.75% May 19, 2033 5,000 5.11% (c) May 19, 2043 3,000 5.30% May 19, 2053 6,000 5.34% (c) May 19, 2063 4,000 Total long-term debt issued in the second quarter of 2023 (d) $ 31,000 (a) The notes are fully and unconditionally guaranteed on a senior unsecured basis by Pfizer Inc. PIE was formed to finance a portion of the consideration for the proposed acquisition of Seagen and has no assets or operations and will have no assets or operations, other than as related to the issuance, administration and repayment of the notes and any other debt securities that it may issue in the future. (b) The notes may be redeemed by us at any time, in whole, or in part, at a make-whole redemption price plus accrued and unpaid interest. (c) The notes are subject to a special mandatory redemption (at a price equal to 101% of the aggregate principal amount of such series of notes, plus any accrued and unpaid interest) under certain circumstances if the proposed acquisition of Seagen is terminated or does not close by an agreed upon date. (d) The weighted average effective interest rate for the notes at issuance was 4.93%. The following outlines our senior unsecured long-term debt* and the weighted-average stated interest rate by maturity: (MILLIONS) October 1, December 31, 2022 Notes due 2024 (3.9% for 2022) (a) $ — $ 2,250 Notes due 2025 (3.9% for 2023 and 0.8% for 2022) 3,750 750 Notes due 2026 (3.7% for 2023 and 2.9% for 2022) 6,000 3,000 Notes due 2027 (2.2% for 2023 and 2.1% for 2022) 995 1,000 Notes due 2028 (4.6% for 2023 and 4.8% for 2022) 5,660 1,660 Notes due 2029 (3.5% for 2023 and 2022) 1,750 1,750 Notes due 2030-2034 (4.1% for 2023 and 2.9% for 2022) 12,000 4,000 Notes due 2035-2039 (5.8% for 2023 and 2022) 8,026 8,017 Notes due 2040-2044 (4.1% for 2023 and 3.6% for 2022) 7,931 4,903 Notes due 2045-2049 (4.1% for 2023 and 2022) 3,500 3,500 Notes due 2050-2063 (5.0% for 2023 and 2.7% for 2022) 11,250 1,250 Total long-term debt, principal amount $ 60,862 $ 32,080 Net fair value adjustments related to hedging and purchase accounting 677 959 Net unamortized discounts, premiums and debt issuance costs (491) (175) Other long-term debt — 20 Total long-term debt, carried at historical proceeds, as adjusted $ 61,048 $ 32,884 Current portion of long-term debt, carried at historical proceeds, as adjusted (not included above (3.9% for 2023 and 3.7% for 2022)) $ 2,260 $ 2,560 * Our long-term debt is generally redeemable by us at any time at varying redemption prices plus accrued and unpaid interest. (a) Reclassified to the current portion of long-term debt. |
Schedule of Derivative Instruments | The following summarizes the fair value of the derivative financial instruments and notional amounts: October 1, 2023 December 31, 2022 Fair Value Fair Value (MILLIONS) Notional Asset Liability Notional Asset Liability Derivatives designated as hedging instruments : Foreign exchange contracts (a) $ 27,979 $ 960 $ 781 $ 26,603 $ 838 $ 1,196 Interest rate contracts 6,250 2 537 2,250 — 331 962 1,319 838 1,527 Derivatives not designated as hedging instruments : Foreign exchange contracts $ 17,428 165 149 $ 29,814 240 362 Total $ 1,127 $ 1,468 $ 1,078 $ 1,889 (a) The notional amount of outstanding foreign exchange contracts hedging our intercompany forecasted inventory sales was $4.7 billion as of October 1, 2023 and $4.4 billion as of December 31, 2022. |
Schedule of Derivative Assets | The following summarizes the fair value of the derivative financial instruments and notional amounts: October 1, 2023 December 31, 2022 Fair Value Fair Value (MILLIONS) Notional Asset Liability Notional Asset Liability Derivatives designated as hedging instruments : Foreign exchange contracts (a) $ 27,979 $ 960 $ 781 $ 26,603 $ 838 $ 1,196 Interest rate contracts 6,250 2 537 2,250 — 331 962 1,319 838 1,527 Derivatives not designated as hedging instruments : Foreign exchange contracts $ 17,428 165 149 $ 29,814 240 362 Total $ 1,127 $ 1,468 $ 1,078 $ 1,889 (a) The notional amount of outstanding foreign exchange contracts hedging our intercompany forecasted inventory sales was $4.7 billion as of October 1, 2023 and $4.4 billion as of December 31, 2022. |
Schedule of Derivative Liabilities | The following summarizes the fair value of the derivative financial instruments and notional amounts: October 1, 2023 December 31, 2022 Fair Value Fair Value (MILLIONS) Notional Asset Liability Notional Asset Liability Derivatives designated as hedging instruments : Foreign exchange contracts (a) $ 27,979 $ 960 $ 781 $ 26,603 $ 838 $ 1,196 Interest rate contracts 6,250 2 537 2,250 — 331 962 1,319 838 1,527 Derivatives not designated as hedging instruments : Foreign exchange contracts $ 17,428 165 149 $ 29,814 240 362 Total $ 1,127 $ 1,468 $ 1,078 $ 1,889 (a) The notional amount of outstanding foreign exchange contracts hedging our intercompany forecasted inventory sales was $4.7 billion as of October 1, 2023 and $4.4 billion as of December 31, 2022. |
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 exposures: Gains/(Losses) (a) Gains/(Losses) (a) Gains/(Losses) Reclassified from OCI into OID and COS (a) Three Months Ended (MILLIONS) October 1, October 2, October 1, October 2, October 1, October 2, Derivative Financial Instruments in Cash Flow Hedge Relationships: Foreign exchange contracts (b) $ — $ — $ 359 $ 528 $ 20 $ 558 Amount excluded from effectiveness testing and amortized into earnings (c) — — 49 61 46 57 Derivative Financial Instruments in Fair Value Hedge Relationships: Interest rate contracts (213) (124) — — — — Hedged item 195 124 — — — — Derivative Financial Instruments in Net Investment Hedge Relationships: Foreign exchange contracts — — 297 680 — — Amount excluded from effectiveness testing and amortized into earnings (c) — — 5 78 35 32 Non-Derivative Financial Instruments in Net Investment Hedge Relationships (d) : Foreign currency long-term debt — — 22 49 — — Derivative Financial Instruments Not Designated as Hedges: Foreign exchange contracts 57 (420) — — — — $ 39 $ (420) $ 733 $ 1,396 $ 102 $ 647 Gains/(Losses) (a) Gains/(Losses) (a) Gains/(Losses) Reclassified from OCI into OID and COS (a) Nine Months Ended (MILLIONS) October 1, October 2, October 1, October 2, October 1, October 2, Derivative Financial Instruments in Cash Flow Hedge Relationships: Interest rate contracts $ — $ — $ 68 $ — $ — $ — Foreign exchange contracts (b) — — 312 1,339 (210) 872 Amount excluded from effectiveness testing and amortized into earnings (c) — — 139 105 136 100 Derivative Financial Instruments in Fair Value Hedge Relationships: Interest rate contracts (210) (346) — — — — Hedged item 192 346 — — — — Derivative Financial Instruments in Net Investment Hedge Relationships: Foreign exchange contracts — — 14 1,613 — — Amount excluded from effectiveness testing and amortized into earnings (c) — — 81 63 102 95 Non-Derivative Financial Instruments in Net Investment Hedge Relationships (d) : Foreign currency short-term borrowings — — — 26 — — Foreign currency long-term debt — — 5 119 — — Derivative Financial Instruments Not Designated as Hedges: Foreign exchange contracts 173 (832) — — — — $ 155 $ (832) $ 620 $ 3,264 $ 29 $ 1,068 (a) OID = Other (income)/deductions—net, included in Other (income)/deductions—net in the condensed consolidated statements of operations . COS = Cost of Sales, included in Cost of sales in the condensed consolidated statements of operations. OCI = Other comprehensive income/(loss), included in the condensed consolidated statements of comprehensive income/(loss) . (b) The amounts reclassified from OCI into COS were: • a net gain of $49 million in the third quarter of 2023; • a net gain of $195 million in the first nine months of 2023; • a net gain of $125 million in the third quarter of 2022; and • a net gain of $227 million in the first nine months of 2022. 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 gain of $302 million within the next 12 months into income . The maximum length of time over which we are hedging our exposure to the variability in future foreign exchange cash flows is approximately 20 years and relates to foreign currency debt. (c) The amounts reclassified from OCI were reclassified into OID. (d) Short-term borrowings and long-term debt include foreign currency borrowings, which are used in net investment hedges. The related long-term debt carrying values as of October 1, 2023 and December 31, 2022 were $790 million and $795 million, respectively. |
Schedule of Total Amount of Each Income and Expense Line in which Results of Fair Value Hedges are Recorded | The following summarizes cumulative basis adjustments to our debt in fair value hedges: October 1, 2023 December 31, 2022 Cumulative Amount of Fair Value Hedging Adjustment Increase/(Decrease) to Cumulative Amount of Fair Value Hedging Adjustment Increase/(Decrease) to (MILLIONS) 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 borrowings, including current portion of long-term debt $ — $ — $ 8 $ — $ — $ 10 Long-term debt $ 6,709 $ (513) $ 973 $ 2,235 $ (321) $ 1,042 (a) Carrying amounts exclude the cumulative amount of fair value hedging adjustments. |
Other Financial Information (Ta
Other Financial Information (Tables) | 9 Months Ended |
Oct. 01, 2023 | |
Other Financial Information [Abstract] | |
Schedule of Components of Inventories, Current | The following summarizes the components of Inventories : (MILLIONS) October 1, December 31, 2022 Finished goods $ 2,892 $ 2,603 Work-in-process 6,515 5,519 Raw materials and supplies 797 859 Inventories (a) $ 10,204 $ 8,981 Noncurrent inventories not included above (b) $ 1,416 $ 5,827 (a) The increase from December 31, 2022 of $1.2 billion reflects higher inventory levels for certain products due to supply recovery, new product launches and changes in net market demand, partially offset by $0.7 billion in inventory write-offs for Paxlovid and Comirnaty. (b) Included in Other noncurrent assets . The decrease from December 31, 2022 of $4.4 billion is primarily driven by inventory write-offs for Paxlovid of $4.2 billion and, to a lesser extent, inventory write-offs for Comirnaty of $0.7 billion, partially offset by increases due to inventory build. The charges and |
Schedule of Components of Inventories, Noncurrent | The following summarizes the components of Inventories : (MILLIONS) October 1, December 31, 2022 Finished goods $ 2,892 $ 2,603 Work-in-process 6,515 5,519 Raw materials and supplies 797 859 Inventories (a) $ 10,204 $ 8,981 Noncurrent inventories not included above (b) $ 1,416 $ 5,827 (a) The increase from December 31, 2022 of $1.2 billion reflects higher inventory levels for certain products due to supply recovery, new product launches and changes in net market demand, partially offset by $0.7 billion in inventory write-offs for Paxlovid and Comirnaty. (b) Included in Other noncurrent assets . The decrease from December 31, 2022 of $4.4 billion is primarily driven by inventory write-offs for Paxlovid of $4.2 billion and, to a lesser extent, inventory write-offs for Comirnaty of $0.7 billion, partially offset by increases due to inventory build. The charges and |
Identifiable Intangible Assets
Identifiable Intangible Assets (Tables) | 9 Months Ended |
Oct. 01, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The following summarizes the components of Identifiable intangible assets : October 1, 2023 December 31, 2022 (MILLIONS) Gross Accumulated Identifiable Gross Accumulated Identifiable Finite-lived intangible assets Developed technology rights (a) $ 86,001 $ (59,146) $ 26,855 $ 85,604 $ (56,307) $ 29,297 Brands 922 (869) 53 922 (844) 78 Licensing agreements and other 2,368 (1,446) 922 2,237 (1,397) 841 89,290 (61,461) 27,830 88,763 (58,548) 30,215 Indefinite-lived intangible assets Brands 827 827 827 827 IPR&D (b) 10,803 10,803 11,357 11,357 Licensing agreements and other 764 764 971 971 12,394 12,394 13,155 13,155 Identifiable intangible assets (c) $ 101,684 $ (61,461) $ 40,224 $ 101,919 $ (58,548) $ 43,370 (a) The increase in the gross carrying amount includes, among other things, $495 million of capitalized milestones and the transfer of $450 million from IPR&D to developed technology rights as a result of the approval in the U.S. for Zavzpret nasal spray, and a $90 million capitalized milestone as a result of the approval of Ngenla in the U.S. (all in the second quarter of 2023). (b) The decrease in the gross carrying amount mainly reflects the transfer from IPR&D to developed technology rights as a result of the approval in the U.S. of Zavzpret nasal spray. (c) The decrease is primarily due to amortization expense of $3.5 billion and impairments of $248 million (see Note 4 ), partially offset by additions of $681 million mostly related to milestone payments for the approvals in the U.S. for Zavzpret nasal spray and Ngenla. |
Schedule of Indefinite Lived Intangible Assets | The following summarizes the components of Identifiable intangible assets : October 1, 2023 December 31, 2022 (MILLIONS) Gross Accumulated Identifiable Gross Accumulated Identifiable Finite-lived intangible assets Developed technology rights (a) $ 86,001 $ (59,146) $ 26,855 $ 85,604 $ (56,307) $ 29,297 Brands 922 (869) 53 922 (844) 78 Licensing agreements and other 2,368 (1,446) 922 2,237 (1,397) 841 89,290 (61,461) 27,830 88,763 (58,548) 30,215 Indefinite-lived intangible assets Brands 827 827 827 827 IPR&D (b) 10,803 10,803 11,357 11,357 Licensing agreements and other 764 764 971 971 12,394 12,394 13,155 13,155 Identifiable intangible assets (c) $ 101,684 $ (61,461) $ 40,224 $ 101,919 $ (58,548) $ 43,370 (a) The increase in the gross carrying amount includes, among other things, $495 million of capitalized milestones and the transfer of $450 million from IPR&D to developed technology rights as a result of the approval in the U.S. for Zavzpret nasal spray, and a $90 million capitalized milestone as a result of the approval of Ngenla in the U.S. (all in the second quarter of 2023). (b) The decrease in the gross carrying amount mainly reflects the transfer from IPR&D to developed technology rights as a result of the approval in the U.S. of Zavzpret nasal spray. (c) The decrease is primarily due to amortization expense of $3.5 billion and impairments of $248 million (see Note 4 ), partially offset by additions of $681 million mostly related to milestone payments for the approvals in the U.S. for Zavzpret nasal spray and Ngenla. |
Pension and Postretirement Be_2
Pension and Postretirement Benefit Plans (Tables) | 9 Months Ended |
Oct. 01, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Benefit Costs | The following summarizes the components of net periodic benefit cost/(credit): Pension Plans U.S. International Postretirement Three Months Ended (MILLIONS) Oct. 1, 2023 Oct. 2, 2022 Oct. 1, 2023 Oct. 2, 2022 Oct. 1, 2023 Oct. 2, 2022 Service cost $ — $ — $ 21 $ 29 $ 3 $ 7 Interest cost 147 151 73 38 5 7 Expected return on plan assets (194) (195) (77) (72) (11) (12) Amortization of prior service cost/(credit) — — — — (29) (31) Actuarial (gains)/losses (a) (11) (193) — — — — Curtailments — — — — — (1) Special termination benefits — 1 — — — — Net periodic benefit cost/(credit) reported in income $ (58) $ (235) $ 17 $ (6) $ (32) $ (30) Pension Plans U.S. International Postretirement Nine Months Ended (MILLIONS) Oct. 1, 2023 Oct. 2, 2022 Oct. 1, 2023 Oct. 2, 2022 Oct. 1, 2023 Oct. 2, 2022 Service cost $ — $ — $ 65 $ 89 $ 9 $ 22 Interest cost 442 387 216 121 16 21 Expected return on plan assets (583) (685) (229) (229) (33) (35) Amortization of prior service cost/(credit) 1 1 — (1) (90) (99) Actuarial (gains)/losses (a) 4 231 3 — — — Curtailments — — (1) — (12) (14) Special termination benefits 6 8 — — — 1 Net periodic benefit cost/(credit) reported in income $ (131) $ (57) $ 53 $ (20) $ (109) $ (106) (a) The third quarter of 2022 mainly reflected interim actuarial remeasurement gains, primarily driven by an increase in the discount rate, partially offset by unfavorable plan asset performance. The first nine months of 2022 mainly reflected interim actuarial remeasurement losses, primarily driven by unfavorable plan asset performance, partially offset by gains due to an increase in the discount rate. |
Earnings_(Loss) Per Common Sh_2
Earnings/(Loss) Per Common Share Attributable to Pfizer Inc. Common Shareholders (Tables) | 9 Months Ended |
Oct. 01, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Share | The following presents the detailed calculation of EPS/(LPS): Three Months Ended Nine Months Ended (MILLIONS) October 1, October 2, October 1, October 2, EPS/(LPS) Numerator Income/(loss) from continuing operations attributable to Pfizer Inc. common shareholders $ (2,394) $ 8,630 $ 5,477 $ 26,373 Discontinued operations––net of tax 12 (21) 11 4 Net income/(loss) attributable to Pfizer Inc. common shareholders $ (2,382) $ 8,608 $ 5,488 $ 26,378 EPS/(LPS) Denominator Weighted-average common shares outstanding––Basic 5,646 5,607 5,642 5,606 Common-share equivalents (a) — 111 72 124 Weighted-average common shares outstanding––Diluted 5,646 5,718 5,714 5,729 Anti-dilutive common stock equivalents (b) 58 3 2 1 (a) For the three months ended October 1, 2023, due to the net loss attributable to Pfizer Inc. common shareholders, weighted average common-share equivalents of 56 million shares were not included in the computation of diluted LPS because their inclusion would have had an anti-dilutive effect. (b) 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 |
Oct. 01, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information by Segment | The following provides selected information by reportable segment: Three Months Ended Nine Months Ended Revenues Earnings (a) Revenues Earnings (a) (MILLIONS) October 1, October 2, October 1, October 2, October 1, October 2, October 1, October 2, Reportable Segment: Biopharma $ 12,930 $ 22,319 $ 7,545 $ 14,665 $ 43,320 $ 75,066 $ 25,484 $ 45,222 Other business activities (b) 302 319 (8,782) (4,007) 928 974 (14,387) (9,820) Reconciling Items: Amortization of intangible assets (1,179) (822) (3,466) (2,478) Acquisition-related items (227) (62) (778) (331) Certain significant items (c) (708) (773) (1,666) (3,095) $ 13,232 $ 22,638 $ (3,352) $ 9,001 $ 44,247 $ 76,040 $ 5,187 $ 29,498 (a) I ncome/(loss) from continuing operations before provision/(benefit) for taxes on income/(loss). Biopharma’s earnings include dividend income from our investment in ViiV of $30 million in the third quarter of 2023 and $112 million in the third quarter of 2022, and $213 million in the first nine months of 2023 and $237 million in the first nine months of 2022. (b) Other business activities include revenues and costs associated with Business Innovation and costs that we do not allocate to our operating segments, per above, including acquired IPR&D expenses in the periods presented. Earnings in the third quarter and first nine months of 2023 include approximately $5.6 billion and $5.8 billion, respectively, of inventory write-offs and related charges to Cost of sales mainly due to lower-than-expected demand for our COVID-19 products. Earnings in the first nine months of 2022 included COVID-19-related charges of approximately $0.9 billion to Cost of sales , composed of (i) inventory write-offs of approximately $0.5 billion related to COVID-19 products that exceeded or were expected to exceed their approved shelf-lives prior to being used and (ii) charges of approximately $0.4 billion, primarily related to excess raw materials for Paxlovid recorded in the third quarter of 2022. (c) Certain significant items are substantive and/or unusual, and in some cases recurring, items (as noted above). Earnings in the first nine months of 2023 include, among other items, net losses on equity securities of $711 million recorded in Other (income)/deductions––net . Earnings in the first nine months of 2022 included, among other items: (i) net losses on equity securities of $1.3 billion recorded in Other (income)/deductions––net and (ii) restructuring charges/(credits) and implementation costs and additional depreciation—asset restructuring of $701 million ($344 million recorded in Selling, informational and administrative expense s and the remaining amount primarily recorded in Restructuring charges and certain acquisition-related costs ). See Note 4 . |
Schedule of Revenues by Geographic Region | The following summarizes revenues by geographic area: Three Months Ended Nine Months Ended (MILLIONS) October 1, October 2, % October 1, October 2, % United States $ 7,804 $ 13,851 (44) $ 22,497 $ 33,991 (34) Developed Europe 1,981 3,136 (37) 7,217 14,705 (51) Developed Rest of World 1,073 2,351 (54) 4,852 10,671 (55) Emerging Markets 2,373 3,300 (28) 9,681 16,673 (42) Revenues $ 13,232 $ 22,638 (42) $ 44,247 $ 76,040 (42) |
Schedule of Significant Product Revenues | The following provides detailed revenue information for several of our major products: (MILLIONS) Three Months Ended Nine Months Ended PRODUCT PRIMARY INDICATION OR CLASS Oct. 1, 2023 Oct. 2, 2022 Oct. 1, 2023 Oct. 2, 2022 TOTAL REVENUES $ 13,232 $ 22,638 $ 44,247 $ 76,040 GLOBAL BIOPHARMACEUTICALS BUSINESS (BIOPHARMA) $ 12,930 $ 22,319 $ 43,320 $ 75,066 Primary Care $ 6,287 $ 15,846 $ 23,602 $ 55,676 Comirnaty direct sales and alliance revenues (a) Active immunization to prevent COVID-19 1,307 4,402 5,859 26,477 Eliquis alliance revenues and direct sales Nonvalvular atrial fibrillation, deep vein thrombosis, pulmonary embolism 1,498 1,464 5,135 5,001 Prevnar family Active immunization to prevent pneumonia, invasive disease and otitis media caused by Streptococcus pneumoniae 1,854 1,607 4,835 4,601 Paxlovid COVID-19 in certain high-risk patients 202 7,514 4,414 17,099 Nurtec ODT/Vydura Acute treatment of migraine and prevention of episodic migraine 233 — 646 1 Abrysvo Active immunization to prevent RSV infection 375 — 375 — Premarin family Symptoms of menopause 92 110 299 327 BMP2 Bone graft for spinal fusion 82 58 252 201 FSME-IMMUN/TicoVac Active immunization to prevent tick-borne encephalitis disease 91 67 237 177 Nimenrix Active immunization against invasive meningococcal ACWY disease 43 79 121 221 Trumenba Active immunization to prevent invasive disease caused by Neisseria meningitidis group B 58 60 108 108 All other Primary Care Various 452 485 1,321 1,463 Specialty Care $ 3,757 $ 3,404 $ 11,021 $ 10,267 Vyndaqel family ATTR-CM and polyneuropathy 892 602 2,360 1,766 Xeljanz RA, PsA, UC, active polyarticular course juvenile idiopathic arthritis, ankylosing spondylitis 503 502 1,210 1,304 Enbrel (Outside the U.S. and Canada) RA, juvenile idiopathic arthritis, PsA, plaque psoriasis, pediatric plaque psoriasis, ankylosing spondylitis and nonradiographic axial spondyloarthritis 208 230 627 767 Sulperazon Bacterial infections 122 178 619 598 Ig Portfolio (b) Various 140 124 428 356 Genotropin Replacement of human growth hormone 158 90 379 261 Zavicefta Bacterial infections 130 98 378 302 Inflectra Crohn’s disease, pediatric Crohn’s disease, UC, pediatric UC, RA in combination with methotrexate, ankylosing spondylitis, PsA and plaque psoriasis 121 131 373 403 BeneFIX Hemophilia B 107 99 321 325 Medrol Anti-inflammatory glucocorticoid 89 79 263 235 Zithromax Bacterial infections 60 71 254 250 Oxbryta Sickle cell disease 85 — 232 — Somavert Acromegaly 69 70 200 202 Refacto AF/Xyntha Hemophilia A 61 58 177 188 Fragmin Treatment/prevention of venous thromboembolism 57 60 175 202 Vfend Fungal infections 46 51 153 171 Cresemba Fungal infections 40 41 141 114 Bicillin Bacterial infections 37 36 134 108 Cibinqo Atopic dermatitis 37 11 91 17 All other Anti-infectives Various 270 298 820 900 All other Specialty Care Various 527 575 1,687 1,799 Oncology $ 2,885 $ 3,070 $ 8,696 $ 9,124 Ibrance HR-positive/HER2-negative metastatic breast cancer 1,244 1,283 3,635 3,841 Xtandi alliance revenues mCRPC, nmCRPC, mCSPC 313 320 877 878 Inlyta Advanced RCC 252 252 773 760 (MILLIONS) Three Months Ended Nine Months Ended PRODUCT PRIMARY INDICATION OR CLASS Oct. 1, 2023 Oct. 2, 2022 Oct. 1, 2023 Oct. 2, 2022 Bosulif Philadelphia chromosome–positive chronic myelogenous leukemia 160 141 463 425 Lorbrena ALK-positive metastatic NSCLC 159 99 393 247 Zirabev Treatment of mCRC; unresectable, locally advanced, recurrent or metastatic NSCLC; recurrent glioblastoma; metastatic RCC; and persistent, recurrent or metastatic cervical cancer 100 146 335 432 Ruxience Non-hodgkin’s lymphoma, chronic lymphocytic leukemia, granulomatosis with polyangiitis (Wegener’s Granulomatosis) and microscopic polyangiitis 88 120 302 357 Xalkori ALK-positive and Proto-Oncogene 1, Receptor Tyrosine Kinase-positive advanced NSCLC 86 118 283 362 Retacrit Anemia 82 87 262 308 Aromasin Post-menopausal early and advanced breast cancer 76 66 225 187 Bavencio alliance revenues (c) Locally advanced or metastatic urothelial carcinoma; metastatic Merkel cell carcinoma; immunotherapy and tyrosine kinase inhibitor combination for patients with advanced RCC 18 73 186 198 Besponsa Relapsed or refractory B-cell acute lymphoblastic leukemia 54 55 171 164 Braftovi In combination with Mektovi for metastatic melanoma in patients with a BRAF V600E/K mutation and, in combination with Erbitux ® (cetuximab) (d) , for the treatment of BRAF V600E -mutant mCRC after prior therapy 56 58 156 156 Sutent Advanced and/or metastatic RCC, adjuvant RCC, refractory gastrointestinal stromal tumors (after disease progression on, or intolerance to, imatinib mesylate) and advanced pancreatic neuroendocrine tumor 42 75 136 287 Mektovi In combination with Braftovi for metastatic melanoma in patients with a BRAF V600E/K mutation 45 45 127 129 Trazimera HER2-positive breast cancer and metastatic stomach cancers — 51 67 149 All other Oncology Various 110 80 304 243 BUSINESS INNOVATION (e) $ 302 $ 319 $ 928 $ 974 Pfizer CentreOne (f) Various 291 318 903 972 Pfizer Ignite Various 10 1 25 1 Total Alliance revenues included above $ 1,645 $ 1,689 $ 5,672 $ 6,320 (a) Excludes revenues for certain Comirnaty-related manufacturing activities performed on behalf of BioNTech, which are included in the PC1 contract development and manufacturing organization. See footnote (f) below. (b) Immunoglobulin (Ig) portfolio includes the revenues from Panzyga, Octagam and Cutaquig. (c) In March 2023, it was announced that our alliance with Merck KGaA to co-develop and co-commercialize Bavencio (avelumab) would terminate. Effective June 30, 2023, Merck KGaA took full control of the global commercialization of Bavencio. Beginning in the third quarter of 2023, the related profit share was replaced by a 15% royalty to Pfizer on net sales of Bavencio, which is recorded in Other (income)/deductions––net . We and Merck KGaA will continue to operationalize our respective ongoing clinical trials for Bavencio; and Merck KGaA will control all future R&D activities. (d) Erbitux ® is a registered trademark of ImClone LLC. (e) See Note 13A above for information about Business Innovation. Prior-period financial information has been revised to reflect the current period presentation. (f) PC1 includes revenues from our contract manufacturing, including certain Comirnaty-related manufacturing activities performed on behalf of BioNTech ($11 million for the first nine months of 2023 and $108 million for the first nine months of 2022, respectively), and revenues from our active pharmaceutical ingredient sales operation, as well as revenues related to our manufacturing and supply agreements with former legacy Pfizer businesses/partnerships. |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies - Narrative (Details) $ / shares in Units, $ in Billions | 1 Months Ended | 9 Months Ended | |
Mar. 31, 2023 USD ($) $ / shares | Oct. 01, 2023 operatingSegment | May 31, 2023 USD ($) | |
Business Acquisition [Line Items] | |||
Number of segments | operatingSegment | 2 | ||
Seagen [Member] | |||
Business Acquisition [Line Items] | |||
Business acquisition, per share in cash, expected (in dollars per share) | $ / shares | $ 229 | ||
Business acquisition, expected consideration | $ 43 | ||
Face amount of debt issued | $ 31 |
Basis of Presentation and Sig_5
Basis of Presentation and Significant Accounting Policies - Schedule of Balance Sheet Classification of Accruals (Details) - USD ($) $ in Millions | Oct. 01, 2023 | Dec. 31, 2022 |
Schedule Of Accrued Liabilities [Line Items] | ||
Total accrued rebates and other sales-related accruals | $ 7,757 | $ 6,722 |
Trade accounts receivable, less allowance for doubtful accounts [Member] | ||
Schedule Of Accrued Liabilities [Line Items] | ||
Total accrued rebates and other sales-related accruals | 1,599 | 1,200 |
Other current liabilities [Member] | ||
Schedule Of Accrued Liabilities [Line Items] | ||
Accrued rebates | 5,083 | 4,479 |
Other accruals | 436 | 430 |
Other noncurrent liabilities [Member] | ||
Schedule Of Accrued Liabilities [Line Items] | ||
Total accrued rebates and other sales-related accruals | $ 640 | $ 612 |
Acquisitions, Divestitures, E_3
Acquisitions, Divestitures, Equity-Method Investment and Research and Development Arrangement - Acquisitions Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |||||
Oct. 05, 2022 | Oct. 03, 2022 | Mar. 11, 2022 | Oct. 01, 2023 | Oct. 02, 2022 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | ||||||
Acquisitions of businesses, net of cash acquired | $ 25 | $ 6,225 | ||||
Goodwill | $ 51,527 | $ 51,375 | ||||
GBT [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Payments to acquire business, gross | $ 5,700 | |||||
Acquisitions of businesses, net of cash acquired | 5,200 | |||||
Intangible assets acquired | 4,400 | |||||
Goodwill | 1,000 | |||||
Inventory | $ 672 | |||||
Acquired inventory, selling period | 3 years | |||||
Net deferred tax liabilities | $ 523 | |||||
Assumed long-term debt | 331 | |||||
GBT [Member] | Developed technology rights [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets acquired | $ 1,400 | |||||
Acquired intangible assets, useful life | 6 years | |||||
GBT [Member] | IPR&D [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets acquired | $ 3,000 | |||||
Biohaven [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets acquired | $ 12,100 | |||||
Goodwill | 828 | |||||
Inventory | $ 813 | |||||
Acquired inventory, selling period | 2 years | |||||
Net deferred tax liabilities | $ 550 | |||||
Assumed long-term debt | 1,400 | |||||
Total fair value of consideration transferred | 11,800 | |||||
Fair value of previously held equity interest | 300 | |||||
Trade accounts receivable | 398 | |||||
Other current liabilities | 526 | |||||
Biohaven [Member] | Developed technology rights [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets acquired | $ 11,600 | |||||
Acquired intangible assets, useful life | 11 years | |||||
Biohaven [Member] | IPR&D [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets acquired | $ 450 | |||||
Arena [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Payments to acquire business, gross | $ 6,600 | |||||
Acquisitions of businesses, net of cash acquired | 6,200 | |||||
Intangible assets acquired | 5,500 | |||||
Goodwill | 1,000 | |||||
Net deferred tax liabilities | 490 | |||||
Arena [Member] | IPR&D [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets acquired | 5,000 | |||||
Arena [Member] | Licensing Agreements and Other [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets acquired | $ 460 |
Acquisitions, Divestitures, E_4
Acquisitions, Divestitures, Equity-Method Investment and Research and Development Arrangement - Divestitures Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 01, 2023 | Sep. 19, 2023 | Oct. 01, 2023 | Oct. 01, 2023 | Dec. 31, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Maximum consideration to be received from divestiture | $ 1,000 | ||||
Upfront payment received at closing | $ 300 | ||||
Pre-tax gain on divestiture | $ 222 | $ 222 | $ 222 | ||
Viatris [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Nontrade payables | $ (31) | $ (31) | $ (31) | $ (94) |
Acquisitions, Divestitures, E_5
Acquisitions, Divestitures, Equity-Method Investment and Research and Development Arrangement - Equity Method Investment Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Oct. 01, 2023 | Oct. 02, 2022 | Oct. 01, 2023 | Oct. 02, 2022 | Dec. 31, 2022 | Jul. 18, 2022 | |
Schedule of Equity Method Investments [Line Items] | ||||||
Equity-method investments | $ 11,025 | $ 11,025 | $ 11,033 | |||
Haleon [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment, ownership percentage | 32% | |||||
Equity-method investments | 10,800 | 10,800 | $ 10,800 | |||
Equity-method investment, quoted market value | 12,300 | 12,300 | ||||
Equity method investment earnings | $ 122 | 341 | ||||
Increase due to foreign currency translation | (183) | |||||
Dividend received, distribution | $ 154 | |||||
Consumer Healthcare JV [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment earnings | $ 67 | $ 402 | ||||
Haleon / Consumer Healthcare JV [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment, adjustment of basis differences | $ 118 | $ 119 |
Acquisitions, Divestitures, E_6
Acquisitions, Divestitures, Equity-Method Investment and Research and Development Arrangement - Schedule of Equity-Method Investment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Oct. 01, 2023 | Jun. 30, 2023 | Oct. 02, 2022 | Jun. 30, 2022 | Oct. 01, 2023 | Jun. 30, 2023 | Oct. 02, 2022 | Jun. 30, 2022 | |
Schedule of Equity Method Investments [Line Items] | ||||||||
Revenues | $ 13,232 | $ 22,638 | $ 44,247 | $ 76,040 | ||||
Income from continuing operations | (2,388) | 8,645 | 5,507 | 26,400 | ||||
Net income/(loss) | (2,376) | 8,623 | 5,518 | 26,404 | ||||
Income attributable to shareholders | $ (2,382) | $ 8,608 | $ 5,488 | $ 26,378 | ||||
Haleon [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Revenues | $ 3,490 | $ 10,379 | ||||||
Cost of sales | (1,323) | (4,211) | ||||||
Gross profit | 2,167 | 6,168 | ||||||
Income from continuing operations | 403 | 1,133 | ||||||
Net income/(loss) | 403 | 1,133 | ||||||
Income attributable to shareholders | $ 382 | $ 1,066 | ||||||
Haleon / Consumer Healthcare JV [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Revenues | $ 3,218 | $ 10,164 | ||||||
Cost of sales | (1,196) | (3,830) | ||||||
Gross profit | 2,022 | 6,334 | ||||||
Income from continuing operations | 226 | 1,303 | ||||||
Net income/(loss) | 226 | 1,303 | ||||||
Income attributable to shareholders | $ 210 | $ 1,256 |
Acquisitions, Divestitures, E_7
Acquisitions, Divestitures, Equity-Method Investment and Research and Development Arrangement - Research and Development Arrangement Narrative (Details) - Blackstone [Member] - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended |
Apr. 30, 2023 | Oct. 01, 2023 | Oct. 01, 2023 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Research and development arrangement, maximum funding amount | $ 550 | ||
Research and development arrangement, funding to offset costs incurred | $ 43 | $ 88 | |
Clinical Trial Agreement Terms [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Maximum potential cash payments | 468 | ||
Net Sales and Royalty Agreement Terms [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Maximum potential cash payments | $ 550 |
Restructuring Charges and Oth_3
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives - Narrative (Details) - Focused Company Plan [Member] $ in Billions | Oct. 01, 2023 USD ($) |
Restructuring Cost and Reserve [Line Items] | |
Restructuring cost incurred to date | $ 3.9 |
Restructuring costs incurred, percent of total expected costs | 90% |
Biopharma [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring cost incurred to date | $ 1.5 |
Restructuring charges incurred to date | $ 1.1 |
Restructuring Charges and Oth_4
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives - Schedule of Acquisitions and Cost-Reduction/Productivity Initiatives (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Oct. 01, 2023 | Oct. 02, 2022 | Apr. 03, 2022 | Oct. 01, 2023 | Oct. 02, 2022 | ||
Restructuring charges/(credits): | ||||||
Employee terminations | $ 16 | $ 158 | $ 77 | $ 293 | ||
Asset impairments | 40 | 17 | 45 | 44 | ||
Exit costs/(credits) | 15 | 2 | 44 | 31 | ||
Restructuring charges/(credits) | [1] | 71 | 177 | 165 | 368 | |
Transaction costs | [2] | 5 | 0 | 14 | 42 | |
Integration/pre-integration costs and other | [3] | 78 | 22 | 198 | 170 | |
Restructuring charges and certain acquisition-related costs | 155 | 199 | 377 | 580 | ||
Implementation costs | [4] | 116 | 150 | 298 | 384 | |
Total costs associated with acquisitions and cost-reduction/productivity initiatives | 276 | 357 | 696 | 982 | ||
Biopharma [Member] | ||||||
Restructuring charges/(credits): | ||||||
Restructuring charges/(credits) | 1 | 62 | (22) | 108 | ||
Other (income)/deductions––net [Member] | ||||||
Restructuring charges/(credits): | ||||||
Net periodic benefit costs/(credits) recorded in Other (income)/deductions––net | 0 | 0 | (7) | (5) | ||
Cost of sales [Member] | ||||||
Restructuring charges/(credits): | ||||||
Additional depreciation––asset restructuring | [5] | 5 | 7 | 28 | 22 | |
Implementation costs | [4] | 16 | 14 | 43 | 40 | |
Selling, informational and administrative expenses [Member] | ||||||
Restructuring charges/(credits): | ||||||
Implementation costs | [4] | 71 | 136 | 196 | 344 | |
Research and development expense [Member] | ||||||
Restructuring charges/(credits): | ||||||
Implementation costs | [4] | $ 29 | $ 0 | $ 59 | $ 0 | |
Restructuring charges and acquisition-related costs [Member] | Arena [Member] | ||||||
Restructuring charges/(credits): | ||||||
Post closing compensation expense | $ 138 | |||||
[1]Primarily represents cost-reduction initiatives. Restructuring charges/(credits) associated with Biopharma: charges of $1 million and credits of $22 million for the three and nine months ended October 1, 2023, respectively, and charges of $62 million and $108 million for the three and nine months ended October 2, 2022, respectively.[2]Represents external costs for banking, legal, accounting and other similar services.[3]Represents external, incremental costs directly related to integrating acquired businesses and our proposed acquisition of Seagen, such as expenditures for consulting and the integration of systems and processes, and certain other qualifying costs. In the nine months ended October 1, 2023, integration/pre-integration costs and other were mostly related to our acquisitions of Biohaven and GBT and our proposed acquisition of Seagen. In the nine months ended October 2, 2022, integration costs and other were mostly related to our acquisition of Arena, including $138 million in payments to Arena employees in the first quarter of 2022 for the fair value of previously unvested long-term incentive awards that was recognized as post-closing compensation expense.[4]Represents external, incremental costs directly related to implementing our non-acquisition-related cost-reduction/productivity initiatives.[5]Represents the impact of changes in the estimated useful lives of assets involved in restructuring actions. |
Restructuring Charges and Oth_5
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives - Schedule of Components and Changes in Restructuring Accruals (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 01, 2023 | Oct. 02, 2022 | Oct. 01, 2023 | Oct. 02, 2022 | ||
Restructuring Reserve [Roll Forward] | |||||
Balance, beginning | [1] | $ 1,204 | |||
Provision/(credit) | [2] | $ 71 | $ 177 | 165 | $ 368 |
Utilization and other | [3] | (784) | |||
Balance, ending | [4] | 585 | 585 | ||
Other Current Liabilities [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Balance, beginning | 991 | ||||
Balance, ending | 447 | 447 | |||
Other Noncurrent Liabilities [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Balance, beginning | 213 | ||||
Balance, ending | 137 | 137 | |||
Employee Termination Costs [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Balance, beginning | [1] | 1,196 | |||
Provision/(credit) | 77 | ||||
Utilization and other | [3] | (700) | |||
Balance, ending | [4] | 573 | 573 | ||
Asset Impairment Charges [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Balance, beginning | [1] | 0 | |||
Provision/(credit) | 45 | ||||
Utilization and other | [3] | (45) | |||
Balance, ending | [4] | 0 | 0 | ||
Exit Costs [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Balance, beginning | [1] | 8 | |||
Provision/(credit) | 44 | ||||
Utilization and other | [3] | (39) | |||
Balance, ending | [4] | $ 12 | $ 12 | ||
[1] Included in Other current liabilities ($991 million) and Other noncurrent liabilities ($213 million). Included in Other current liabilities ($447 million) and Other noncurrent liabilities ($137 million). |
Other (Income)_Deductions_Net -
Other (Income)/Deductions—Net - Schedule of Other (Income)/Deductions—Net (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 01, 2023 | Oct. 02, 2022 | Oct. 01, 2023 | Oct. 02, 2022 | ||
Other Income and Expenses [Abstract] | |||||
Interest income | $ (523) | $ (70) | $ (1,015) | $ (114) | |
Interest expense | 695 | 311 | 1,521 | 925 | |
Net interest expense | [1] | 173 | 240 | 505 | 811 |
Royalty-related income | (260) | (239) | (737) | (628) | |
Net (gains)/losses on asset disposals | 0 | 7 | (2) | 6 | |
Net (gains)/losses recognized during the period on equity securities | [2],[3] | 393 | 112 | 709 | 1,353 |
Income from collaborations, out-licensing arrangements and sales of compound/product rights | (10) | (4) | (84) | (17) | |
Net periodic benefit costs/(credits) other than service costs | (92) | (306) | (260) | (294) | |
Certain legal matters, net | [4] | 71 | 77 | 246 | 175 |
Certain asset impairments | [5] | 0 | 200 | 264 | 200 |
Haleon/Consumer Healthcare JV equity method (income)/loss | [6] | (131) | 51 | (354) | (283) |
Other, net | [7] | (222) | (198) | (643) | (260) |
Other (income)/deductions––net | $ (79) | $ (59) | $ (356) | $ 1,063 | |
[1]The decrease in net interest expense in the third quarter and first nine months of 2023 reflects higher interest expense driven by our $31 billion aggregate principal amount of senior unsecured notes issued in May 2023 as part of the financing for our proposed acquisition of Seagen, which was more than offset by higher interest income on the investment of the net proceeds from the debt issuance.[2] Reported in Other (income)/deductions –– net. See Note 4 . See Note 2C . The third quarter and first nine months of 2023 includes, among other things, a $222 million gain on the divestiture of our early-stage rare disease gene therapy portfolio to Alexion. The first nine months of 2023 also includes, among other things, dividend income of $213 million from our investment in ViiV and $211 million from our investment in Nimbus resulting from Takeda Pharmaceutical Company Limited’s acquisition of Nimbus’s oral, selective allosteric tyrosine kinase 2 (TYK2) inhibitor program subsidiary. |
Other (Income)_Deductions_Net_2
Other (Income)/Deductions—Net - Footnotes (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||||
Oct. 01, 2023 | Oct. 01, 2023 | Oct. 02, 2022 | Oct. 01, 2023 | Oct. 02, 2022 | May 31, 2023 | |||||
Loss Contingencies [Line Items] | ||||||||||
Net unrealized (gains)/losses during the reporting period on equity securities still held at the reporting date | [1] | $ 394,000,000 | $ 116,000,000 | $ 757,000,000 | $ 1,436,000,000 | |||||
Intangible asset impairment charge | 248,000,000 | |||||||||
Pre-tax gain on divestiture | $ 222,000,000 | 222,000,000 | 222,000,000 | |||||||
Unsecured Debt [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Face amount of debt issued | $ 31,000,000,000 | [2],[3],[4] | 31,000,000,000 | [2],[3],[4] | 31,000,000,000 | [2],[3],[4] | $ 31,000,000,000 | |||
Other Business Activities [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Intangible asset impairment charge | [5] | 128,000,000 | ||||||||
Operating Segments [Member] | License Agreements and Other [Member] | Biopharma [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Intangible asset impairment charge | 120,000,000 | |||||||||
BioNTech, Cerevel Therapeutics, LLC and Allogene Therapeutics, Inc. [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Net unrealized (gains)/losses during the reporting period on equity securities still held at the reporting date | 606,000,000 | |||||||||
Nimbus [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Dividend income | 211,000,000 | |||||||||
ViiV [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Dividend income | 30,000,000 | $ 112,000,000 | $ 213,000,000 | 237,000,000 | ||||||
Cerevel Therapeutics, LLC and Allogene Therapeutics, Inc. [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Net unrealized (gains)/losses during the reporting period on equity securities still held at the reporting date | $ 312,000,000 | |||||||||
BioNTech, Cerevel Therapeutics, LLC and Arvinas [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Net unrealized (gains)/losses during the reporting period on equity securities still held at the reporting date | $ 974,000,000 | |||||||||
[1]Included in net unrealized (gains)/losses are observable price changes on equity securities without readily determinable fair values. As of October 1, 2023, there were cumulative impairments and downward adjustments of $188 million and upward adjustments of $213 million. Impairments, downward and upward adjustments were not significant in the third quarters and first nine months of 2023 and 2022.[2]The notes are fully and unconditionally guaranteed on a senior unsecured basis by Pfizer Inc. PIE was formed to finance a portion of the consideration for the proposed acquisition of Seagen and has no assets or operations and will have no assets or operations, other than as related to the issuance, administration and repayment of the notes and any other debt securities that it may issue in the future.[3]The notes may be redeemed by us at any time, in whole, or in part, at a make-whole redemption price plus accrued and unpaid interest.[4]The weighted average effective interest rate for the notes at issuance was 4.93%.[5]Reflects intangible assets written down to fair value in 2023. 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 for 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_Net_3
Other (Income)/Deductions—Net - Schedule of Impaired Intangible Assets (Details) $ in Millions | 9 Months Ended | |
Oct. 01, 2023 USD ($) | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, fair value | $ 0 | [1] |
Impairment | 248 | |
Licensing agreements and other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, fair value | 0 | [1],[2] |
Impairment | 120 | [2] |
Developed technology rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, fair value | 0 | [1],[2] |
Impairment | 34 | [2] |
Level 1 [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, fair value | 0 | [1] |
Level 1 [Member] | Licensing agreements and other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, fair value | 0 | [1],[2] |
Level 1 [Member] | Developed technology rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, fair value | 0 | [1],[2] |
Level 2 [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, fair value | 0 | [1] |
Level 2 [Member] | Licensing agreements and other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, fair value | 0 | [1],[2] |
Level 2 [Member] | Developed technology rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, fair value | 0 | [1],[2] |
Level 3 [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, fair value | 0 | [1] |
Level 3 [Member] | Licensing agreements and other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, fair value | 0 | [1],[2] |
Level 3 [Member] | Developed technology rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, fair value | 0 | [1],[2] |
IPR&D [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, fair value | 0 | [1],[2] |
Impairment | 94 | [2] |
IPR&D [Member] | Level 1 [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, fair value | 0 | [1],[2] |
IPR&D [Member] | Level 2 [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, fair value | 0 | [1],[2] |
IPR&D [Member] | Level 3 [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, fair value | $ 0 | [1],[2] |
[1] The fair value amount is presented as of the date of impairment, as this asset is not measured at fair value on a recurring basis. See also Note 1E in our 2022 Form 10-K . |
Tax Matters - Narrative (Detail
Tax Matters - Narrative (Detail) - USD ($) $ in Billions | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2023 | Oct. 02, 2022 | Oct. 01, 2023 | Oct. 02, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate for income from continuing operations | 28.80% | 4% | (6.20%) | 10.50% |
Repatriation tax liability | $ 15 | $ 15 |
Tax Matters - Schedule of Tax P
Tax Matters - Schedule of Tax Provision/(Benefit) on Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 01, 2023 | Oct. 02, 2022 | Oct. 01, 2023 | Oct. 02, 2022 | ||
Income Tax Disclosure [Abstract] | |||||
Foreign currency translation adjustments, net | [1] | $ (28) | $ 20 | $ (33) | $ (165) |
Unrealized holding gains/(losses) on derivative financial instruments, net | 80 | 47 | 108 | 177 | |
Reclassification adjustments for (gains)/losses included in net income/(loss) | (5) | (72) | (16) | (97) | |
Derivatives qualifying as hedges, tax, total | 75 | (25) | 91 | 80 | |
Unrealized holding gains/(losses) on available-for-sale securities, net | (10) | (97) | 4 | (175) | |
Reclassification adjustments for (gains)/losses included in net income/(loss) | 6 | 76 | (55) | 137 | |
Available-for-sale securities, tax, total | (4) | (21) | (51) | (38) | |
Reclassification adjustments related to amortization of prior service costs and other, net | (7) | (7) | (21) | (23) | |
Reclassification adjustments related to curtailments of prior service costs and other, net | (1) | 0 | (3) | (3) | |
Pension and other postretirement benefit plans, net prior service cost (credit), tax | (7) | (8) | (24) | (26) | |
Tax provision/(benefit) on other comprehensive income/(loss) | $ 36 | $ (33) | $ (17) | $ (149) | |
[1]Taxes are not provided for foreign currency translation adjustments relating to investments in international subsidiaries that we intend to hold indefinitely. |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss, Excluding Noncontrolling Interests (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Oct. 01, 2023 | Oct. 02, 2022 | Oct. 01, 2023 | Oct. 02, 2022 | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | $ 99,293 | $ 87,469 | $ 95,916 | $ 77,462 | ||
Other comprehensive income/(loss), net of tax | 134 | (1,111) | 330 | (2,339) | ||
Ending balance | 97,204 | 92,891 | 97,204 | 92,891 | ||
Accumulated Other Comprehensive Income (Loss) [Member] | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | (8,102) | (7,119) | (8,304) | (5,897) | ||
Other comprehensive income/(loss), net of tax | 135 | (1,106) | 338 | [1] | (2,328) | |
Ending balance | (7,966) | $ (8,225) | (7,966) | $ (8,225) | ||
Foreign Currency Translation Adjustment [Member] | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | [2] | (8,360) | ||||
Other comprehensive income/(loss), net of tax | [1],[2] | 274 | ||||
Ending balance | [2] | (8,086) | (8,086) | |||
Derivative Financial Instruments [Member] | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | (412) | |||||
Other comprehensive income/(loss), net of tax | [1] | 501 | ||||
Ending balance | 89 | 89 | ||||
Available-For-Sale Securities [Member] | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | 220 | |||||
Other comprehensive income/(loss), net of tax | [1] | (360) | ||||
Ending balance | (140) | (140) | ||||
Prior Service (Costs)/Credits and Other [Member] | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | 248 | |||||
Other comprehensive income/(loss), net of tax | [1] | (78) | ||||
Ending balance | $ 170 | $ 170 | ||||
[1] Foreign currency translation adjustments include net losses related to our equity-method investment in Haleon (see Note 2C ) and the impact of our net investment hedging program. |
Financial Instruments - Financi
Financial Instruments - Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Millions | Oct. 01, 2023 | Dec. 31, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities with readily determinable fair values | [1] | $ 13,193 | $ 1,588 |
Total other noncurrent assets | 8,808 | 13,163 | |
Total assets | 215,021 | 197,205 | |
Total liabilities | 1,468 | 1,889 | |
Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current derivative assets | 713 | 714 | |
Noncurrent derivative assets | 414 | 364 | |
Insurance contracts | [2] | 718 | 665 |
Total other noncurrent assets | 1,132 | 1,028 | |
Total assets | 43,613 | 25,261 | |
Current derivative liabilities | 197 | 704 | |
Noncurrent derivative liabilities | 1,270 | 1,185 | |
Total liabilities | 1,468 | 1,889 | |
Long-term equity securities held in trust | 127 | 143 | |
Recurring [Member] | Interest rate contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current derivative assets | 1 | 0 | |
Noncurrent derivative assets | 1 | 0 | |
Current derivative liabilities | 4 | 10 | |
Noncurrent derivative liabilities | 533 | 321 | |
Recurring [Member] | Foreign exchange contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current derivative assets | 712 | 714 | |
Noncurrent derivative assets | 413 | 364 | |
Current derivative liabilities | 193 | 694 | |
Noncurrent derivative liabilities | 738 | 864 | |
Short-term investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 26,247 | 18,743 | |
Total short-term investments | 39,440 | 20,331 | |
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 values | [3] | 2,118 | 2,836 |
Available-for-sale debt securities | 211 | 352 | |
Total long-term investments | 2,329 | 3,188 | |
Level 1 [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current derivative assets | 0 | 0 | |
Noncurrent derivative assets | 0 | 0 | |
Insurance contracts | [2] | 0 | 0 |
Total other noncurrent assets | 0 | 0 | |
Total assets | 2,112 | 2,823 | |
Current derivative liabilities | 0 | 0 | |
Noncurrent derivative liabilities | 0 | 0 | |
Total liabilities | 0 | 0 | |
Level 1 [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 | |
Noncurrent derivative assets | 0 | 0 | |
Current derivative liabilities | 0 | 0 | |
Noncurrent derivative liabilities | 0 | 0 | |
Level 1 [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 | |
Noncurrent derivative assets | 0 | 0 | |
Current derivative liabilities | 0 | 0 | |
Noncurrent derivative 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] | 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 values | [3] | 2,112 | 2,823 |
Available-for-sale debt securities | 0 | 0 | |
Total long-term investments | 2,112 | 2,823 | |
Level 2 [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current derivative assets | 713 | 714 | |
Noncurrent derivative assets | 414 | 364 | |
Insurance contracts | [2] | 718 | 665 |
Total other noncurrent assets | 1,132 | 1,028 | |
Total assets | 41,501 | 22,439 | |
Current derivative liabilities | 197 | 704 | |
Noncurrent derivative liabilities | 1,270 | 1,185 | |
Total liabilities | 1,468 | 1,889 | |
Level 2 [Member] | Recurring [Member] | Interest rate contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current derivative assets | 1 | 0 | |
Noncurrent derivative assets | 1 | 0 | |
Current derivative liabilities | 4 | 10 | |
Noncurrent derivative liabilities | 533 | 321 | |
Level 2 [Member] | Recurring [Member] | Foreign exchange contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current derivative assets | 712 | 714 | |
Noncurrent derivative assets | 413 | 364 | |
Current derivative liabilities | 193 | 694 | |
Noncurrent derivative liabilities | 738 | 864 | |
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 | 26,247 | 18,743 | |
Total short-term investments | 39,440 | 20,331 | |
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 values | [3] | 6 | 13 |
Available-for-sale debt securities | 211 | 352 | |
Total long-term investments | 217 | 365 | |
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 values | 13,193 | 1,588 | |
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 values | 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 values | 13,193 | 1,588 | |
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 | 18,374 | 16,195 | |
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 | 18,236 | 15,915 | |
Government and agency—non-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 | 138 | 280 | |
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 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—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 | 18,236 | 15,915 | |
Government and agency—non-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 | 138 | 280 | |
Government and agency—U.S. [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 5,832 | 1,313 | |
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 | 5,832 | 1,313 | |
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 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 | 5,832 | 1,313 | |
Corporate and other [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 2,252 | 1,586 | |
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 | 2,179 | 1,514 | |
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 | 73 | 72 | |
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 | 2,179 | 1,514 | |
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 | $ 73 | $ 72 | |
[1]money market funds primarily invested in U.S. Treasury and government debt.[2] Includes life insurance policies held in restricted trusts for U.S. non-qualified employee benefit plans. The underlying invested assets in these contracts are marketable securities, which are carried at fair value, with changes in fair value recognized in Other (income)/deductions—net (see Note 4 ). |
Financial Instruments - Finan_2
Financial Instruments - Financial Liabilities Not Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Billions | Oct. 01, 2023 | Dec. 31, 2022 |
Carrying Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value | $ 61 | $ 33 |
Estimated Fair Value [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value | $ 57 | $ 30 |
Financial Instruments - Investm
Financial Instruments - Investments by Classification Type (Details) - USD ($) $ in Millions | Oct. 01, 2023 | Dec. 31, 2022 | |
Short-term investments | |||
Equity securities with readily determinable fair values | [1] | $ 13,193 | $ 1,588 |
Available-for-sale debt securities | 26,247 | 18,743 | |
Held-to-maturity debt securities | 1,593 | 1,985 | |
Short-term investments | 41,033 | 22,316 | |
Long-term investments | |||
Equity securities with readily determinable fair values | [2] | 2,118 | 2,836 |
Available-for-sale debt securities | 211 | 352 | |
Held-to-maturity debt securities | 50 | 48 | |
Private equity securities at cost | [2] | 834 | 800 |
Total Long-term investments | 3,214 | 4,036 | |
Equity-method investments | 11,025 | 11,033 | |
Total long-term investments and equity-method investments | 14,239 | 15,069 | |
Held-to-maturity cash equivalents | $ 384 | $ 679 | |
[1]money market funds primarily invested in U.S. Treasury and government debt.[2]Represent investments in the life sciences sector |
Financial Instruments - Schedul
Financial Instruments - Schedule of Investment Securities (Details) - USD ($) $ in Millions | Oct. 01, 2023 | Dec. 31, 2022 |
Debt Securities, Held-to-maturity, Maturity, Fair Value [Abstract] | ||
Debt securities, amortized cost | $ 28,646 | $ 21,556 |
Debt securities, gross unrealized gains | 16 | 304 |
Debt securities, gross unrealized losses | (176) | (53) |
Debt securities, fair value | 28,486 | 21,807 |
Debt securities maturities, within 1 year, fair value | 28,225 | |
Debt securities maturities, over 1 to 5 years, fair value | 249 | |
Debt securities maturities, over 5 years, fair value | 12 | |
Time deposits and other [Member] | ||
Debt Securities, Held-to-maturity, Maturity [Abstract] | ||
Held-to-maturity securities, amortized cost | 944 | 1,171 |
Held-to-maturity securities, gross unrealized gains | 0 | 0 |
Held-to-maturity securities, gross unrealized losses | 0 | 0 |
Held-to-maturity securities, fair value | 944 | 1,171 |
Debt Securities, Held-to-maturity, Maturity, Fair Value [Abstract] | ||
Held-to-maturity securities, debt maturities, within 1 year, fair value | 898 | |
Held-to-maturity securities, debt maturities, over 1 to 5 years, fair value | 35 | |
Held-to-maturity securities, debt maturities, over 5 years, fair value | 11 | |
Held-to-maturity securities, amortized cost | 944 | 1,171 |
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 | 18,528 | 15,946 |
Available-for-sale debt securities, gross unrealized gains | 16 | 297 |
Available-for-sale debt securities, gross unrealized losses | (170) | (48) |
Available-for-sale debt securities | 18,374 | 16,195 |
Available-for-sale Securities, Debt Maturities [Abstract] | ||
Available-for-sale securities, debt maturities, within 1 year, fair value | 18,236 | |
Available-for-sale securities, debt maturities, over 1 to 5 years, fair value | 138 | |
Available-for-sale securities, debt maturities, over 5 years, fair value | 0 | |
Available-for-sale debt securities, fair value | 18,374 | 16,195 |
Debt Securities, Held-to-maturity, Maturity [Abstract] | ||
Held-to-maturity securities, amortized cost | 1,084 | 1,542 |
Held-to-maturity securities, gross unrealized gains | 0 | 0 |
Held-to-maturity securities, gross unrealized losses | 0 | 0 |
Held-to-maturity securities, fair value | 1,084 | 1,542 |
Debt Securities, Held-to-maturity, Maturity, Fair Value [Abstract] | ||
Held-to-maturity securities, debt maturities, within 1 year, fair value | 1,080 | |
Held-to-maturity securities, debt maturities, over 1 to 5 years, fair value | 3 | |
Held-to-maturity securities, debt maturities, over 5 years, fair value | 1 | |
Held-to-maturity securities, amortized cost | 1,084 | 1,542 |
Government and agency—U.S. [Member] | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Available-for-sale debt securities, amortized cost | 5,833 | 1,313 |
Available-for-sale debt securities, gross unrealized gains | 0 | 0 |
Available-for-sale debt securities, gross unrealized losses | (1) | 0 |
Available-for-sale debt securities | 5,832 | 1,313 |
Available-for-sale Securities, Debt Maturities [Abstract] | ||
Available-for-sale securities, debt maturities, within 1 year, fair value | 5,832 | |
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 | 5,832 | 1,313 |
Corporate and other [Member] | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Available-for-sale debt securities, amortized cost | 2,257 | 1,584 |
Available-for-sale debt securities, gross unrealized gains | 0 | 7 |
Available-for-sale debt securities, gross unrealized losses | (6) | (4) |
Available-for-sale debt securities | 2,252 | 1,586 |
Available-for-sale Securities, Debt Maturities [Abstract] | ||
Available-for-sale securities, debt maturities, within 1 year, fair value | 2,179 | |
Available-for-sale securities, debt maturities, over 1 to 5 years, fair value | 73 | |
Available-for-sale securities, debt maturities, over 5 years, fair value | 0 | |
Available-for-sale debt securities, fair value | $ 2,252 | $ 1,586 |
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 | |||
Oct. 01, 2023 | Oct. 02, 2022 | Oct. 01, 2023 | Oct. 02, 2022 | ||
Fair Value Disclosures [Abstract] | |||||
Net (gains)/losses recognized during the period on equity securities | [1],[2] | $ 393 | $ 112 | $ 709 | $ 1,353 |
Less: Net (gains)/losses recognized during the period on equity securities sold during the period | (1) | (5) | (48) | (84) | |
Net unrealized (gains)/losses during the reporting period on equity securities still held at the reporting date | [3] | $ 394 | $ 116 | $ 757 | $ 1,436 |
[1] Reported in Other (income)/deductions –– net. See Note 4 . |
Financial Instruments - Inves_3
Financial Instruments - Investments - Unrealized Gains and Losses Related to Equity Securities - Footnotes (Details) $ in Millions | Oct. 01, 2023 USD ($) |
Fair Value Disclosures [Abstract] | |
Cumulative impairment losses and downward price adjustments on equity securities | $ 188 |
Cumulative upward price adjustments on equity securities | $ 213 |
Financial Instruments - Short-t
Financial Instruments - Short-term Borrowings (Details) - USD ($) $ in Millions | Oct. 01, 2023 | Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |||
Current portion of long-term debt, principal amount | $ 2,250 | $ 2,550 | |
Other short-term borrowings, principal amount | [1] | 288 | 385 |
Total short-term borrowings, principal amount | 2,538 | 2,935 | |
Net fair value adjustments | 10 | 10 | |
Total Short-term borrowings, including current portion of long-term debt, carried at historical proceeds, as adjusted | $ 2,548 | $ 2,945 | |
[1] Primarily includes cash collateral. See Note 7F . |
Financial Instruments - Long-Te
Financial Instruments - Long-Term Debt, Issuance (Details) - USD ($) | 1 Months Ended | |||
May 31, 2023 | Oct. 01, 2023 | |||
Debt Instrument [Line Items] | ||||
Effective interest rate | 4.93% | |||
Unsecured Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt issued | $ 31,000,000,000 | $ 31,000,000,000 | [1],[2],[3] | |
Redemption price percentage | 101% | |||
Unsecured Debt [Member] | Senior Unsecured Notes, 4.650%, Due May 2025 [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 4.65% | |||
Face amount of debt issued | [1],[2],[4] | $ 3,000,000,000 | ||
Unsecured Debt [Member] | Senior Unsecured Notes, 4.450%, Due May 2026 [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 4.45% | |||
Face amount of debt issued | [1],[2],[4] | $ 3,000,000,000 | ||
Unsecured Debt [Member] | Senior Unsecured Notes, 4.450%, Due May 2028 [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 4.45% | |||
Face amount of debt issued | [1],[2],[4] | $ 4,000,000,000 | ||
Unsecured Debt [Member] | Senior Unsecured Notes, 4.650%, Due May 2030 [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 4.65% | |||
Face amount of debt issued | [1],[2],[4] | $ 3,000,000,000 | ||
Unsecured Debt [Member] | Senior Unsecured Notes, 4.750%, Due May 2033 [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 4.75% | |||
Face amount of debt issued | [1],[2] | $ 5,000,000,000 | ||
Unsecured Debt [Member] | Senior Unsecured Notes, 5.110%, Due May 2043 [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 5.11% | |||
Face amount of debt issued | [1],[2],[4] | $ 3,000,000,000 | ||
Unsecured Debt [Member] | Senior Unsecured Notes, 5.300%, Due May 2053 [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 5.30% | |||
Face amount of debt issued | [1],[2] | $ 6,000,000,000 | ||
Unsecured Debt [Member] | Senior Unsecured Notes, 5.340%, Due May 2063 [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 5.34% | |||
Face amount of debt issued | [1],[2],[4] | $ 4,000,000,000 | ||
[1]The notes are fully and unconditionally guaranteed on a senior unsecured basis by Pfizer Inc. PIE was formed to finance a portion of the consideration for the proposed acquisition of Seagen and has no assets or operations and will have no assets or operations, other than as related to the issuance, administration and repayment of the notes and any other debt securities that it may issue in the future.[2]The notes may be redeemed by us at any time, in whole, or in part, at a make-whole redemption price plus accrued and unpaid interest.[3]The weighted average effective interest rate for the notes at issuance was 4.93%.[4]The notes are subject to a special mandatory redemption (at a price equal to 101% of the aggregate principal amount of such series of notes, plus any accrued and unpaid interest) under certain circumstances if the proposed acquisition of Seagen is terminated or does not close by an agreed upon date. |
Financial Instruments - Long-_2
Financial Instruments - Long-Term Debt (Details) - USD ($) $ in Millions | Oct. 01, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||
Total long-term debt, carried at historical proceeds, as adjusted | $ 61,048 | $ 32,884 | |
Current portion of long-term debt | $ 2,260 | $ 2,560 | |
Unsecured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate, percentage | 3.90% | 3.70% | |
Total long-term debt, principal amount | [1] | $ 60,862 | $ 32,080 |
Net fair value adjustments related to hedging and purchase accounting | [1] | 677 | 959 |
Net unamortized discounts, premiums and debt issuance costs | [1] | (491) | (175) |
Other long-term debt | [1] | 0 | 20 |
Total long-term debt, carried at historical proceeds, as adjusted | [1] | 61,048 | 32,884 |
Current portion of long-term debt | [1] | 2,260 | $ 2,560 |
Unsecured Debt [Member] | Senior Unsecured Debt, Due 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate, percentage | 3.90% | ||
Total long-term debt, principal amount | [1],[2] | $ 0 | $ 2,250 |
Unsecured Debt [Member] | Senior Unsecured Debt, Due 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate, percentage | 3.90% | 0.80% | |
Total long-term debt, principal amount | [1] | $ 3,750 | $ 750 |
Unsecured Debt [Member] | Senior Unsecured Debt, Due 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate, percentage | 3.70% | 2.90% | |
Total long-term debt, principal amount | [1] | $ 6,000 | $ 3,000 |
Unsecured Debt [Member] | Senior Unsecured Debt, Due 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate, percentage | 2.20% | 2.10% | |
Total long-term debt, principal amount | [1] | $ 995 | $ 1,000 |
Unsecured Debt [Member] | Senior Unsecured Debt, Due 2028 [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate, percentage | 4.60% | 4.80% | |
Total long-term debt, principal amount | [1] | $ 5,660 | $ 1,660 |
Unsecured Debt [Member] | Senior Unsecured Debt, Due 2029 [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate, percentage | 3.50% | 3.50% | |
Total long-term debt, principal amount | [1] | $ 1,750 | $ 1,750 |
Unsecured Debt [Member] | Senior Unsecured Debt, Due 2030-2034 [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate, percentage | 4.10% | 2.90% | |
Total long-term debt, principal amount | [1] | $ 12,000 | $ 4,000 |
Unsecured Debt [Member] | Senior Unsecured Debt, Due 2035-2039 [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate, percentage | 5.80% | 5.80% | |
Total long-term debt, principal amount | [1] | $ 8,026 | $ 8,017 |
Unsecured Debt [Member] | Senior Unsecured Debt, Due 2040-2044 [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate, percentage | 4.10% | 3.60% | |
Total long-term debt, principal amount | [1] | $ 7,931 | $ 4,903 |
Unsecured Debt [Member] | Senior Unsecured Debt, Due 2045-2049 [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate, percentage | 4.10% | 4.10% | |
Total long-term debt, principal amount | [1] | $ 3,500 | $ 3,500 |
Unsecured Debt [Member] | Senior Unsecured Debt, Due 2050-2063 [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate, percentage | 5% | 2.70% | |
Total long-term debt, principal amount | [1] | $ 11,250 | $ 1,250 |
[1]Our long-term debt is generally redeemable by us at any time at varying redemption prices plus accrued and unpaid interest.[2]Reclassified to the current portion of long-term debt. |
Financial Instruments - Derivat
Financial Instruments - Derivative Narrative (Details) | 9 Months Ended |
Oct. 01, 2023 | |
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 | Oct. 01, 2023 | Dec. 31, 2022 | |
Derivative [Line Items] | |||
Asset | $ 1,127 | $ 1,078 | |
Liability | 1,468 | 1,889 | |
Derivatives designated as hedging instruments [Member] | |||
Derivative [Line Items] | |||
Asset | 962 | 838 | |
Liability | 1,319 | 1,527 | |
Derivatives designated as hedging instruments [Member] | Foreign exchange contracts [Member] | |||
Derivative [Line Items] | |||
Notional | [1] | 27,979 | 26,603 |
Asset | [1] | 960 | 838 |
Liability | [1] | 781 | 1,196 |
Derivatives designated as hedging instruments [Member] | Interest rate contracts [Member] | |||
Derivative [Line Items] | |||
Notional | 6,250 | 2,250 | |
Asset | 2 | 0 | |
Liability | 537 | 331 | |
Derivatives not designated as hedging instruments [Member] | Foreign exchange contracts [Member] | |||
Derivative [Line Items] | |||
Notional | 17,428 | 29,814 | |
Asset | 165 | 240 | |
Liability | 149 | 362 | |
Inventory sales [Member] | Derivatives designated as hedging instruments [Member] | Foreign exchange contracts [Member] | |||
Derivative [Line Items] | |||
Notional | $ 4,700 | $ 4,400 | |
[1]The notional amount of outstanding foreign exchange contracts hedging our intercompany forecasted inventory sales was $4.7 billion as of October 1, 2023 and $4.4 billion as of December 31, 2022. |
Financial Instruments - Deriv_2
Financial Instruments - Derivative Financial Instruments and Hedging Activities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 01, 2023 | Oct. 02, 2022 | Oct. 01, 2023 | Oct. 02, 2022 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Amount of Gains/(Losses) Recognized in OID | [1] | $ 39 | $ (420) | $ 155 | $ (832) |
Derivative, Amount of Gains/(Losses), Cash Flow Hedge, Recognized in OCI | 408 | 589 | 519 | 1,443 | |
Amount of Gains/(Losses) Recognized in OCI | [1] | 733 | 1,396 | 620 | 3,264 |
Derivative, Amount of Gains/(Losses) Reclassified from OCI into OID and COS | [2] | 67 | 615 | (73) | 972 |
Amount of Gains/(Losses) Reclassified from OCI into OID and COS | [1] | 102 | 647 | 29 | 1,068 |
Designated as Hedging Instrument [Member] | Foreign currency short-term borrowings [Member] | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Non-Derivative, Amount of Gains/(Losses) Recognized in OCI | [1],[3] | 0 | 26 | ||
Non-Derivative, Amount of Gains/(Losses) Reclassified from OCI into OID and COS | [1],[3] | 0 | 0 | ||
Designated as Hedging Instrument [Member] | Foreign currency long-term debt [Member] | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Non-Derivative, Amount of Gains/(Losses) Recognized in OCI | [1],[3] | 22 | 49 | 5 | 119 |
Non-Derivative, Amount of Gains/(Losses) Reclassified from OCI into OID and COS | [1],[3] | 0 | 0 | 0 | 0 |
Derivative Financial Instruments Not Designated as Hedges [Member] | Foreign exchange contracts [Member] | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative, Amount of Gains/(Losses) Recognized in OID | [1] | 57 | (420) | 173 | (832) |
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Interest rate contracts [Member] | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative, Amount of Gains/(Losses), Cash Flow Hedge, Recognized in OCI | 68 | 0 | |||
Derivative, Amount of Gains/(Losses) Reclassified from OCI into OID and COS | 0 | 0 | |||
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Foreign exchange contracts [Member] | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative, Amount of Gains/(Losses), Cash Flow Hedge, Recognized in OCI | [1],[4] | 359 | 528 | 312 | 1,339 |
Derivative, Amount of Gains/(Losses) Recognized in OCI, excluded from effectiveness testing and amortized into earnings | [1],[5] | 49 | 61 | 139 | 105 |
Derivative, Amount of Gains/(Losses) Reclassified from OCI into OID and COS | [1],[4] | 20 | 558 | (210) | 872 |
Derivative, Amount of Gains/(Losses) Reclassified from OCI into OID and COS, excluded from effectiveness testing | [1],[5] | 46 | 57 | 136 | 100 |
Fair Value Hedging [Member] | Designated as Hedging Instrument [Member] | Interest rate contracts [Member] | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative, Amount of Gains/(Losses), Fair Value Hedge, Recognized in OID | [1] | (213) | (124) | (210) | (346) |
Derivative, Amount of Gains/(Losses), Hedged Item, Recognized in OID | [1] | 195 | 124 | 192 | 346 |
Net Investment Hedging [Member] | Designated as Hedging Instrument [Member] | Foreign exchange contracts [Member] | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative, Amount of Gains/(Losses) Recognized in OCI, excluded from effectiveness testing and amortized into earnings | [1],[5] | 5 | 78 | 81 | 63 |
Derivative, Amount of Gains/(Losses), Net Investment Hedge, Recognized in OCI | [1] | 297 | 680 | 14 | 1,613 |
Derivative, Amount of Gains/(Losses) Reclassified from OCI into OID and COS, excluded from effectiveness testing | [1],[5] | 35 | 32 | 102 | 95 |
Derivative, Amount of Gains/(Losses) Reclassified from OCI into OID and COS | [1] | $ 0 | $ 0 | $ 0 | $ 0 |
[1] OID = Other (income)/deductions—net, included in Other (income)/deductions—net in the condensed consolidated statements of operations . COS = Cost of Sales, included in Cost of sales Reclassified into Other (income)/deductions—net and Cost of sales. See Note 7E . • a net gain of $49 million in the third quarter of 2023; • a net gain of $195 million in the first nine months of 2023; • a net gain of $125 million in the third quarter of 2022; and • a net gain of $227 million in the first nine months of 2022. 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 gain of $302 million within the next 12 months into income . The maximum length of time over which we are hedging our exposure to the variability in future foreign exchange cash flows is approximately 20 years and relates to foreign currency debt. |
Financial Instruments - Deriv_3
Financial Instruments - Derivative Financial Instruments and Hedging Activities - Footnotes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Oct. 01, 2023 | Oct. 02, 2022 | Oct. 01, 2023 | Oct. 02, 2022 | Dec. 31, 2022 | ||
Derivative [Line Items] | ||||||
Gain reclassified from OCI into COS | [1] | $ 67 | $ 615 | $ (73) | $ 972 | |
Foreign currency long-term debt [Member] | ||||||
Derivative [Line Items] | ||||||
Long-term debt | 790 | 790 | $ 795 | |||
Designated as Hedging Instrument [Member] | Foreign exchange contracts [Member] | ||||||
Derivative [Line Items] | ||||||
Pre-tax gain expected to be reclassified within the next 12 months | $ 302 | $ 302 | ||||
Remaining period of hedging exposure | 20 years | 20 years | ||||
Designated as Hedging Instrument [Member] | Cost of sales [Member] | Foreign exchange contracts [Member] | ||||||
Derivative [Line Items] | ||||||
Gain reclassified from OCI into COS | $ 49 | $ 125 | $ 195 | $ 227 | ||
[1] Reclassified into Other (income)/deductions—net and Cost of sales. See Note 7E . |
Financial Instruments - Cumulat
Financial Instruments - Cumulative Basis Adjustments for Fair Value Hedges (Details) - USD ($) $ in Millions | Oct. 01, 2023 | Dec. 31, 2022 | |
Short-term Debt [Member] | |||
Derivative [Line Items] | |||
Carrying Amount of Actively Hedged Liabilities | [1] | $ 0 | $ 0 |
Cumulative Amount of Fair Value Hedging Adjustment Increase/(Decrease) to Carrying Amount, Active Hedging Relationships, Liability | 0 | 0 | |
Cumulative Amount of Fair Value Hedging Adjustment Increase/(Decrease) to Carrying Amount, Discontinued Hedging Relationships, Liability | 8 | 10 | |
Long-term debt [Member] | |||
Derivative [Line Items] | |||
Carrying Amount of Actively Hedged Liabilities | [1] | 6,709 | 2,235 |
Cumulative Amount of Fair Value Hedging Adjustment Increase/(Decrease) to Carrying Amount, Active Hedging Relationships, Liability | (513) | (321) | |
Cumulative Amount of Fair Value Hedging Adjustment Increase/(Decrease) to Carrying Amount, Discontinued Hedging Relationships, Liability | $ 973 | $ 1,042 | |
[1]Carrying amounts exclude the cumulative amount of fair value hedging adjustments. |
Financial Instruments - Credit
Financial Instruments - Credit Risk (Details) $ in Millions | Oct. 01, 2023 USD ($) |
Fair Value Disclosures [Abstract] | |
Derivatives in a net payable position | $ 941 |
Collateral posted | 1,000 |
Derivatives in a net receivable position | 333 |
Collateral received | $ 256 |
Other Financial Information - I
Other Financial Information - Inventories (Details) - USD ($) $ in Millions | 9 Months Ended | |||
Oct. 01, 2023 | Oct. 02, 2022 | Dec. 31, 2022 | ||
Inventory [Line Items] | ||||
Finished goods | $ 2,892 | $ 2,603 | ||
Work-in-process | 6,515 | 5,519 | ||
Raw materials and supplies | 797 | 859 | ||
Inventories | [1] | 10,204 | 8,981 | |
Noncurrent inventories not included above | [2] | 1,416 | $ 5,827 | |
Increase in inventories | 1,200 | |||
Write-offs | [3] | 5,847 | $ 476 | |
Decrease in other noncurrent assets | 4,400 | |||
Paxlovid [Member] | ||||
Inventory [Line Items] | ||||
Write-offs | 4,200 | |||
Comirnaty [Member] | ||||
Inventory [Line Items] | ||||
Write-offs | 700 | |||
Paxlovid and Comirnaty | ||||
Inventory [Line Items] | ||||
Write-offs | $ 700 | |||
[1]The increase from December 31, 2022 of $1.2 billion reflects higher inventory levels for certain products due to supply recovery, new product launches and changes in net market demand, partially offset by $0.7 billion in inventory write-offs for Paxlovid and Comirnaty.[2] Included in Other noncurrent assets . The decrease from December 31, 2022 of $4.4 billion is primarily driven by inventory write-offs for Paxlovid of $4.2 billion and, to a lesser extent, inventory write-offs for Comirnaty of $0.7 billion, partially offset by increases due to inventory build. The charges and Notes 8 and 13 . |
Other Financial Information - O
Other Financial Information - Other Current Liabilities (Details) - USD ($) $ in Millions | Oct. 01, 2023 | Dec. 31, 2022 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Other current liabilities | $ 16,776 | $ 22,568 |
BioNTech [Member] | Comirnaty [Member] | Collaborative Arrangement [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Other current liabilities | $ 533 | $ 5,200 |
Other Financial Information - S
Other Financial Information - Supplier Finance Program Obligation (Details) - USD ($) $ in Millions | Oct. 01, 2023 | Dec. 31, 2022 |
Supplier Finance Program [Line Items] | ||
Supplier finance program payable | $ 781 | $ 849 |
Minimum [Member] | ||
Supplier Finance Program [Line Items] | ||
Supplier finance program, payment timing, period | 90 days | |
Maximum [Member] | ||
Supplier Finance Program [Line Items] | ||
Supplier finance program, payment timing, period | 120 days |
Identifiable Intangible Asset_2
Identifiable Intangible Assets - Schedule of Finite-lived and Indefinite-lived Intangible Assets (Detail) - USD ($) $ in Millions | Oct. 01, 2023 | Dec. 31, 2022 | |
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, gross carrying amount | $ 89,290 | $ 88,763 | |
Finite-lived intangible assets, accumulated amortization | [1] | (61,461) | (58,548) |
Finite-lived intangible assets, net | 27,830 | 30,215 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | 12,394 | 13,155 | |
Intangible assets, gross carrying amount | [1] | 101,684 | 101,919 |
Finite-lived intangible assets, accumulated amortization | [1] | (61,461) | (58,548) |
Identifiable Intangible Assets, less Accumulated Amortization | [1] | 40,224 | 43,370 |
Brands [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | 827 | 827 | |
IPR&D [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | [2] | 10,803 | 11,357 |
License Agreements and Other [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | 764 | 971 | |
Developed technology rights [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, gross carrying amount | [3] | 86,001 | 85,604 |
Finite-lived intangible assets, accumulated amortization | [3] | (59,146) | (56,307) |
Finite-lived intangible assets, net | [3] | 26,855 | 29,297 |
Indefinite-lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, accumulated amortization | [3] | (59,146) | (56,307) |
Brands [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, gross carrying amount | 922 | 922 | |
Finite-lived intangible assets, accumulated amortization | (869) | (844) | |
Finite-lived intangible assets, net | 53 | 78 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, accumulated amortization | (869) | (844) | |
License Agreements and Other [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, gross carrying amount | 2,368 | 2,237 | |
Finite-lived intangible assets, accumulated amortization | (1,446) | (1,397) | |
Finite-lived intangible assets, net | 922 | 841 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, accumulated amortization | $ (1,446) | $ (1,397) | |
[1] The decrease is primarily due to amortization expense of $3.5 billion and impairments of $248 million (see Note 4 ), partially offset by additions of $681 million mostly related to milestone payments for the approvals in the U.S. for Zavzpret nasal spray and Ngenla. |
Identifiable Intangible Asset_3
Identifiable Intangible Assets - Footnotes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Oct. 01, 2023 | Oct. 01, 2023 | ||
Indefinite-lived Intangible Assets [Line Items] | |||
Amortization expense for finite-lived intangible assets | $ 3,500 | ||
Intangible asset impairment charge | 248 | ||
Intangible assets acquired | 681 | ||
IPR&D [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Intangible asset impairment charge | [1] | 94 | |
IPR&D [Member] | Zavzpret [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets, period decrease | $ 450 | ||
Developed technology rights [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Intangible asset impairment charge | [1] | $ 34 | |
Developed technology rights [Member] | Zavzpret [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, capitalized milestone | 495 | ||
Finite-lived intangible assets, period increase | 450 | ||
Developed technology rights [Member] | Ngenla [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, capitalized milestone | $ 90 | ||
[1]Reflects intangible assets written down to fair value in 2023. 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 for 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. |
Pension and Postretirement Be_3
Pension and Postretirement Benefit Plans - Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 01, 2023 | Oct. 02, 2022 | Oct. 01, 2023 | Oct. 02, 2022 | ||
Pension Plan [Member] | U.S. [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | $ 0 | $ 0 | $ 0 | $ 0 | |
Interest cost | 147 | 151 | 442 | 387 | |
Expected return on plan assets | (194) | (195) | (583) | (685) | |
Amortization of prior service cost/(credit) | 0 | 0 | 1 | 1 | |
Actuarial (gains)/losses | [1] | (11) | (193) | 4 | 231 |
Curtailments | 0 | 0 | 0 | 0 | |
Special termination benefits | 0 | 1 | 6 | 8 | |
Net periodic benefit cost/(credit) reported in income | (58) | (235) | (131) | (57) | |
Pension Plan [Member] | International [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 21 | 29 | 65 | 89 | |
Interest cost | 73 | 38 | 216 | 121 | |
Expected return on plan assets | (77) | (72) | (229) | (229) | |
Amortization of prior service cost/(credit) | 0 | 0 | 0 | (1) | |
Actuarial (gains)/losses | [1] | 0 | 0 | 3 | 0 |
Curtailments | 0 | 0 | (1) | 0 | |
Special termination benefits | 0 | 0 | 0 | 0 | |
Net periodic benefit cost/(credit) reported in income | 17 | (6) | 53 | (20) | |
Postretirement Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 3 | 7 | 9 | 22 | |
Interest cost | 5 | 7 | 16 | 21 | |
Expected return on plan assets | (11) | (12) | (33) | (35) | |
Amortization of prior service cost/(credit) | (29) | (31) | (90) | (99) | |
Actuarial (gains)/losses | [1] | 0 | 0 | 0 | 0 |
Curtailments | 0 | (1) | (12) | (14) | |
Special termination benefits | 0 | 0 | 0 | 1 | |
Net periodic benefit cost/(credit) reported in income | $ (32) | $ (30) | $ (109) | $ (106) | |
[1]The third quarter of 2022 mainly reflected interim actuarial remeasurement gains, primarily driven by an increase in the discount rate, partially offset by unfavorable plan asset performance. The first nine months of 2022 mainly reflected interim actuarial remeasurement losses, primarily driven by unfavorable plan asset performance, partially offset by gains due to an increase in the discount rate. |
Pension and Postretirement Be_4
Pension and Postretirement Benefit Plans - Narrative (Detail) $ in Millions | 9 Months Ended |
Oct. 01, 2023 USD ($) | |
Pension Plan [Member] | U.S. [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Contributions by employer | $ 125 |
Pension Plan [Member] | International [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Contributions by employer | 128 |
Postretirement Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Contributions by employer | $ 28 |
Earnings_(Loss) Per Common Sh_3
Earnings/(Loss) Per Common Share Attributable to Pfizer Inc. Common Shareholders (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 01, 2023 | Oct. 02, 2022 | Oct. 01, 2023 | Oct. 02, 2022 | ||
EPS/(LPS) Numerator | |||||
Income/(loss) from continuing operations attributable to Pfizer Inc. common shareholders | $ (2,394) | $ 8,630 | $ 5,477 | $ 26,373 | |
Discontinued operations––net of tax | 12 | (21) | 11 | 4 | |
Net income/(loss) attributable to Pfizer Inc. common shareholders | (2,382) | 8,608 | 5,488 | 26,378 | |
EPS/(LPS) Numerator––Diluted | |||||
Income/(loss) from continuing operations attributable to Pfizer Inc. common shareholders and assumed conversions | (2,394) | 8,630 | 5,477 | 26,373 | |
Net income/(loss) attributable to Pfizer Inc. common shareholders and assumed conversions | $ (2,382) | $ 8,608 | $ 5,488 | $ 26,378 | |
EPS/(LPS) Denominator | |||||
Weighted-average common shares outstanding––Basic | 5,646 | 5,607 | 5,642 | 5,606 | |
Common-share equivalents (in shares) | [1] | 0 | 111 | 72 | 124 |
Weighted-average common shares outstanding––Diluted | 5,646 | 5,718 | 5,714 | 5,729 | |
[1] For the three months ended October 1, 2023, due to the net loss attributable to Pfizer Inc. common shareholders, weighted average common-share equivalents of 56 million shares were not included in the computation of diluted LPS because their inclusion would have had an anti-dilutive effect. |
Earnings_(Loss) Per Common Sh_4
Earnings/(Loss) Per Common Share Attributable to Pfizer Inc. Common Shareholders - Footnote (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 01, 2023 | Oct. 02, 2022 | Oct. 01, 2023 | Oct. 02, 2022 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Anti-dilutive common stock equivalents (in shares) | [1] | 58 | 3 | 2 | 1 |
Common-Share Equivalents [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Anti-dilutive common stock equivalents (in shares) | 56 | ||||
[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) $ in Millions | 1 Months Ended | |||||||||
Nov. 08, 2023 patent | Aug. 31, 2023 patent | Jun. 30, 2023 patent | May 31, 2023 patent | Apr. 30, 2023 patent | Sep. 30, 2022 patent | Aug. 31, 2022 patent | Jul. 31, 2022 patent | Sep. 30, 2021 patent | Oct. 01, 2023 USD ($) | |
Gain Contingencies [Line Items] | ||||||||||
Threshold for disclosure of proceedings under environmental laws | $ | $ 1 | |||||||||
Subsequent Event [Member] | ||||||||||
Gain Contingencies [Line Items] | ||||||||||
Loss contingency, patents allegedly infringed and subsequently revoked | 1 | |||||||||
Eucrisa [Member] | Pfizer Versus Several Generic Manufacturers [Member] | Patent Infringement [Member] | Pending Litigation [Member] | ||||||||||
Gain Contingencies [Line Items] | ||||||||||
Gain contingency, number of patents allegedly infringed upon | 2 | |||||||||
Mektovi [Member] | Pfizer Versus Several Generic Manufacturers [Member] | Patent Infringement [Member] | Pending Litigation [Member] | ||||||||||
Gain Contingencies [Line Items] | ||||||||||
Gain contingency, number of patents allegedly infringed upon | 6 | |||||||||
Mektovi [Member] | Pfizer Versus Several Generic Manufacturers [Member] | Patent Infringement [Member] | Pending Litigation [Member] | Expiring 2030 [Member] | ||||||||||
Gain Contingencies [Line Items] | ||||||||||
Gain contingency, number of patents allegedly infringed upon | 2 | |||||||||
Mektovi [Member] | Pfizer Versus Several Generic Manufacturers [Member] | Patent Infringement [Member] | Pending Litigation [Member] | Expiring 2033 [Member] | ||||||||||
Gain Contingencies [Line Items] | ||||||||||
Gain contingency, number of patents allegedly infringed upon | 2 | |||||||||
Mektovi [Member] | Pfizer Versus Teva Pharmaceuticals, Inc. [Member] | Patent Infringement [Member] | Pending Litigation [Member] | ||||||||||
Gain Contingencies [Line Items] | ||||||||||
Gain contingency, number of patents allegedly infringed upon | 3 | |||||||||
Mektovi [Member] | Pfizer Versus Teva Pharmaceuticals, Inc. [Member] | Patent Non-Infringement [Member] | Pending Litigation [Member] | Teva Pharmaceuticals, Inc [Member] | ||||||||||
Gain Contingencies [Line Items] | ||||||||||
Gain contingency, number of patents allegedly infringed upon | 2 | |||||||||
Comirnaty [Member] | Alnylam Patent Infringement Case [Member] | ||||||||||
Gain Contingencies [Line Items] | ||||||||||
Loss contingency, number of patents allegedly infringed upon | 4 | |||||||||
Comirnaty [Member] | ModernaTX U.S. Patent Infringement Case [Member] | ||||||||||
Gain Contingencies [Line Items] | ||||||||||
Loss contingency, number of patents allegedly infringed upon | 3 | |||||||||
Comirnaty [Member] | ModernaTX European Patent Infringement Case [Member] | ||||||||||
Gain Contingencies [Line Items] | ||||||||||
Loss contingency, number of patents allegedly infringed upon | 2 | 2 | ||||||||
Comirnaty [Member] | Arbutus and Genevant U.S. Patent Infringement Case [Member] | ||||||||||
Gain Contingencies [Line Items] | ||||||||||
Loss contingency, number of patents allegedly infringed upon | 5 | |||||||||
Comirnaty [Member] | Pfizer, BioNTech and BioNTech Manufacturing GmbH Versus CureVac, Judgment of Non-Infringement [Member] | ||||||||||
Gain Contingencies [Line Items] | ||||||||||
Loss contingency, number of patents not infringed | 3 | |||||||||
Loss contingency, number of patents found infringed | 3 | |||||||||
Comirnaty [Member] | Pfizer, BioNTech and BioNTech Manufacturing GmbH Versus CureVac, Additional Patent Infringement Assertion [Member] | ||||||||||
Gain Contingencies [Line Items] | ||||||||||
Loss contingency, number of patents found infringed | 6 | |||||||||
Abrysvo [Member] | GlaxoSmithKline Biologics SA and GlaxoSmithKline LLC US Patent Infringement Case [Member] | ||||||||||
Gain Contingencies [Line Items] | ||||||||||
Loss contingency, number of patents allegedly infringed upon | 4 |
Contingencies and Certain Com_3
Contingencies and Certain Commitments - Product Litigation, Commercial and Other Matters, Legal Proceedings (Details) | 12 Months Ended |
Dec. 31, 2018 manufacturer | |
Pfizer and Hospira and Various Other Manufacturers Versus Mississippi Attorney General [Member] | Docetaxel [Member] | Pending Litigation [Member] | |
Loss Contingencies [Line Items] | |
Number of defendants other than main defendant | 8 |
Segment, Geographic and Other_3
Segment, Geographic and Other Revenue Information - Narrative (Detail) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Oct. 01, 2023 USD ($) | Oct. 02, 2022 | Oct. 01, 2023 USD ($) operatingSegment | Oct. 02, 2022 | Dec. 31, 2022 USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of segments | operatingSegment | 2 | ||||
Total assets | $ 215,021 | $ 215,021 | $ 197,205 | ||
Remaining performance obligation | 9,000 | 9,000 | |||
Deferred revenues, current | 2,204 | 2,204 | 2,520 | ||
U.S. Government [Member] | Comirnaty [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Deferred revenues | 3,200 | 3,200 | 2,500 | ||
Deferred revenues, current | 2,100 | 2,100 | 2,400 | ||
Deferred revenues, noncurrent | 1,000 | 1,000 | $ 77 | ||
Deferred revenue recognized | $ 140 | $ 2,100 | |||
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | U.S. Government [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk | 38% | 7% | 27% | ||
Credit Concentration Risk [Member] | Trade Accounts Receivable [Member] | U.S. Government [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk | 4% |
Segment, Geographic and Other_4
Segment, Geographic and Other Revenue Information - Schedule of Segment Reporting Information by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 01, 2023 | Oct. 02, 2022 | Oct. 01, 2023 | Oct. 02, 2022 | ||
Segment Reporting Information [Line Items] | |||||
Revenues | $ 13,232 | $ 22,638 | $ 44,247 | $ 76,040 | |
Income/(loss) from continuing operations before provision/(benefit) for taxes on income/(loss) | [1] | (3,352) | 9,001 | 5,187 | 29,498 |
Write-offs | [2] | 5,847 | 476 | ||
Net gains/(losses) recognized during the period on equity securities | [3],[4] | (393) | (112) | (709) | (1,353) |
Restructuring charges | 701 | ||||
Selling, informational and administrative expenses [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Restructuring charges | 344 | ||||
ViiV [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Dividend income | 30 | 112 | 213 | 237 | |
Other Business Activities [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | [5] | 302 | 319 | 928 | 974 |
Income/(loss) from continuing operations before provision/(benefit) for taxes on income/(loss) | [1],[5] | (8,782) | (4,007) | (14,387) | (9,820) |
Write-offs | 5,600 | 5,800 | 500 | ||
Adjustment to cost of sales | 900 | ||||
Other Business Activities [Member] | Paxlovid | |||||
Segment Reporting Information [Line Items] | |||||
Charges to cost of sales related to raw materials | 400 | 400 | |||
Reconciling Items [Member] | Amortization of Intangible Assets [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Income/(loss) from continuing operations before provision/(benefit) for taxes on income/(loss) | [1] | (1,179) | (822) | (3,466) | (2,478) |
Reconciling Items [Member] | Acquisition-Related Items [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Income/(loss) from continuing operations before provision/(benefit) for taxes on income/(loss) | [1] | (227) | (62) | (778) | (331) |
Reconciling Items [Member] | Certain Significant Items [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Income/(loss) from continuing operations before provision/(benefit) for taxes on income/(loss) | [1],[6] | (708) | (773) | (1,666) | (3,095) |
Net gains/(losses) recognized during the period on equity securities | (711) | (1,300) | |||
Biopharma [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 12,930 | 22,319 | 43,320 | 75,066 | |
Biopharma [Member] | Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 12,930 | 22,319 | 43,320 | 75,066 | |
Income/(loss) from continuing operations before provision/(benefit) for taxes on income/(loss) | [1] | $ 7,545 | $ 14,665 | $ 25,484 | $ 45,222 |
[1] I ncome/(loss) from continuing operations before provision/(benefit) for taxes on income/(loss). Biopharma’s earnings include dividend income from our investment in ViiV of $30 million in the third quarter of 2023 and $112 million in the third quarter of 2022, and $213 million in the first nine months of 2023 and $237 million in the first nine months of 2022. Notes 8 and 13 . Reported in Other (income)/deductions –– net. See Note 4 . Other business activities include revenues and costs associated with Business Innovation and costs that we do not allocate to our operating segments, per above, including acquired IPR&D expenses in the periods presented. Earnings in the third quarter and first nine months of 2023 include approximately $5.6 billion and $5.8 billion, respectively, of inventory write-offs and related charges to Cost of sales mainly due to lower-than-expected demand for our COVID-19 products. Earnings in the first nine months of 2022 included COVID-19-related charges of approximately $0.9 billion to Cost of sales , composed of (i) inventory write-offs of approximately $0.5 billion related to COVID-19 products that exceeded or were expected to exceed their approved shelf-lives prior to being used and (ii) charges of approximately $0.4 billion, primarily related to excess raw materials for Paxlovid recorded in the third quarter of 2022. Certain significant items are substantive and/or unusual, and in some cases recurring, items (as noted above). Earnings in the first nine months of 2023 include, among other items, net losses on equity securities of $711 million recorded in Other (income)/deductions––net . Earnings in the first nine months of 2022 included, among other items: (i) net losses on equity securities of $1.3 billion recorded in Other (income)/deductions––net and (ii) restructuring charges/(credits) and implementation costs and additional depreciation—asset restructuring of $701 million ($344 million recorded in Selling, informational and administrative expense s and the remaining amount primarily recorded in Restructuring charges and certain acquisition-related costs ). See Note 4 . |
Segment, Geographic and Other_5
Segment, Geographic and Other Revenue Information - Revenues by Geographic Area (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2023 | Oct. 02, 2022 | Oct. 01, 2023 | Oct. 02, 2022 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 13,232 | $ 22,638 | $ 44,247 | $ 76,040 |
Percentage change in revenue | (42.00%) | (42.00%) | ||
U.S. [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 7,804 | 13,851 | $ 22,497 | 33,991 |
Percentage change in revenue | (44.00%) | (34.00%) | ||
Developed Europe [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 1,981 | 3,136 | $ 7,217 | 14,705 |
Percentage change in revenue | (37.00%) | (51.00%) | ||
Developed Rest of World [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 1,073 | 2,351 | $ 4,852 | 10,671 |
Percentage change in revenue | (54.00%) | (55.00%) | ||
Emerging Markets [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 2,373 | $ 3,300 | $ 9,681 | $ 16,673 |
Percentage change in revenue | (28.00%) | (42.00%) |
Segment, Geographic and Other_6
Segment, Geographic and Other Revenue Information - Revenues by Products (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 01, 2023 | Oct. 02, 2022 | Oct. 01, 2023 | Oct. 02, 2022 | ||
Revenue from External Customer [Line Items] | |||||
Revenues | $ 13,232 | $ 22,638 | $ 44,247 | $ 76,040 | |
Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 12,930 | 22,319 | 43,320 | 75,066 | |
Business Innovation Segment [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [1] | 302 | 319 | 928 | 974 |
Pfizer CentreOne [Member] | Business Innovation Segment [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [2] | 291 | 318 | 903 | 972 |
Pfizer Ignite [Member] | Business Innovation Segment [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 10 | 1 | 25 | 1 | |
Total Alliance revenues [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenue - Alliance revenues | 1,645 | 1,689 | 5,672 | 6,320 | |
Primary Care [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 6,287 | 15,846 | 23,602 | 55,676 | |
Primary Care [Member] | Comirnaty direct sales and alliance revenues [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [3] | 1,307 | 4,402 | 5,859 | 26,477 |
Primary Care [Member] | Eliquis alliance revenues and direct sales [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 1,498 | 1,464 | 5,135 | 5,001 | |
Primary Care [Member] | Prevnar Family [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 1,854 | 1,607 | 4,835 | 4,601 | |
Primary Care [Member] | Paxlovid [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 202 | 7,514 | 4,414 | 17,099 | |
Primary Care [Member] | Nurtec ODT/Vydura [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 233 | 0 | 646 | 1 | |
Primary Care [Member] | Abrysvo [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 375 | 0 | 375 | 0 | |
Primary Care [Member] | Premarin family [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 92 | 110 | 299 | 327 | |
Primary Care [Member] | BMP2 [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 82 | 58 | 252 | 201 | |
Primary Care [Member] | FSME-IMMUN/TicoVac [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 91 | 67 | 237 | 177 | |
Primary Care [Member] | Nimenrix [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 43 | 79 | 121 | 221 | |
Primary Care [Member] | Trumenba [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 58 | 60 | 108 | 108 | |
Primary Care [Member] | All other Primary Care [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 452 | 485 | 1,321 | 1,463 | |
Specialty Care [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 3,757 | 3,404 | 11,021 | 10,267 | |
Specialty Care [Member] | Vyndaqel family [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 892 | 602 | 2,360 | 1,766 | |
Specialty Care [Member] | Xeljanz [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 503 | 502 | 1,210 | 1,304 | |
Specialty Care [Member] | Enbrel (Outside the U.S. and Canada) [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 208 | 230 | 627 | 767 | |
Specialty Care [Member] | Sulperazon [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 122 | 178 | 619 | 598 | |
Specialty Care [Member] | Ig Portfolio [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [4] | 140 | 124 | 428 | 356 |
Specialty Care [Member] | Genotropin [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 158 | 90 | 379 | 261 | |
Specialty Care [Member] | Zavicefta [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 130 | 98 | 378 | 302 | |
Specialty Care [Member] | Inflectra [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 121 | 131 | 373 | 403 | |
Specialty Care [Member] | BeneFIX [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 107 | 99 | 321 | 325 | |
Specialty Care [Member] | Medrol [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 89 | 79 | 263 | 235 | |
Specialty Care [Member] | Zithromax [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 60 | 71 | 254 | 250 | |
Specialty Care [Member] | Oxbryta [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 85 | 0 | 232 | 0 | |
Specialty Care [Member] | Somavert [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 69 | 70 | 200 | 202 | |
Specialty Care [Member] | Refacto AF/Xyntha [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 61 | 58 | 177 | 188 | |
Specialty Care [Member] | Fragmin [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 57 | 60 | 175 | 202 | |
Specialty Care [Member] | Vfend [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 46 | 51 | 153 | 171 | |
Specialty Care [Member] | Cresemba [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 40 | 41 | 141 | 114 | |
Specialty Care [Member] | Bicillin [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 37 | 36 | 134 | 108 | |
Specialty Care [Member] | Cibinqo [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 37 | 11 | 91 | 17 | |
Specialty Care [Member] | All other Anti-infectives [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 270 | 298 | 820 | 900 | |
Specialty Care [Member] | All other Specialty Care [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 527 | 575 | 1,687 | 1,799 | |
Oncology [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 2,885 | 3,070 | 8,696 | 9,124 | |
Oncology [Member] | Ibrance [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 1,244 | 1,283 | 3,635 | 3,841 | |
Oncology [Member] | Xtandi alliance revenues [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 313 | 320 | 877 | 878 | |
Oncology [Member] | Inlyta [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 252 | 252 | 773 | 760 | |
Oncology [Member] | Bosulif [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 160 | 141 | 463 | 425 | |
Oncology [Member] | Lorbrena [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 159 | 99 | 393 | 247 | |
Oncology [Member] | Zirabev [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 100 | 146 | 335 | 432 | |
Oncology [Member] | Ruxience [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 88 | 120 | 302 | 357 | |
Oncology [Member] | Xalkori [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 86 | 118 | 283 | 362 | |
Oncology [Member] | Retacrit [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 82 | 87 | 262 | 308 | |
Oncology [Member] | Aromasin [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 76 | 66 | 225 | 187 | |
Oncology [Member] | Bavencio alliance revenues [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [5] | 18 | 73 | 186 | 198 |
Oncology [Member] | Besponsa [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 54 | 55 | 171 | 164 | |
Oncology [Member] | Braftovi [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [6] | 56 | 58 | 156 | 156 |
Oncology [Member] | Sutent [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 42 | 75 | 136 | 287 | |
Oncology [Member] | Mektovi [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 45 | 45 | 127 | 129 | |
Oncology [Member] | Trazimera [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 0 | 51 | 67 | 149 | |
Oncology [Member] | All other Oncology [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | $ 110 | $ 80 | $ 304 | $ 243 | |
[1] See Note 13A above for information about Business Innovation. Prior-period financial information has been revised to reflect the current period presentation. Immunoglobulin (Ig) portfolio includes the revenues from Panzyga, Octagam and Cutaquig. In March 2023, it was announced that our alliance with Merck KGaA to co-develop and co-commercialize Bavencio (avelumab) would terminate. Effective June 30, 2023, Merck KGaA took full control of the global commercialization of Bavencio. Beginning in the third quarter of 2023, the related profit share was replaced by a 15% royalty to Pfizer on net sales of Bavencio, which is recorded in Other (income)/deductions––net . We and Merck KGaA will continue to operationalize our respective ongoing clinical trials for Bavencio; and Merck KGaA will control all future R&D activities. Erbitux ® is a registered trademark of ImClone LLC. |
Segment, Geographic and Other_7
Segment, Geographic and Other Revenue Information - Revenues by Products - Footnotes (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 01, 2023 USD ($) | Oct. 02, 2022 USD ($) | Oct. 01, 2023 USD ($) | Oct. 02, 2022 USD ($) | ||
Revenue from External Customer [Line Items] | |||||
Revenues | $ 13,232 | $ 22,638 | $ 44,247 | $ 76,040 | |
Business Innovation Segment [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [1] | 302 | 319 | 928 | 974 |
Business Innovation Segment [Member] | Pfizer CentreOne [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [2] | 291 | 318 | 903 | 972 |
Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 12,930 | 22,319 | 43,320 | 75,066 | |
Biopharma [Member] | Oncology [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | $ 2,885 | 3,070 | 8,696 | 9,124 | |
Biopharma [Member] | Bavencio alliance revenues [Member] | Oncology [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Royalty on net sales, percentage | 0.15 | ||||
Revenues | [3] | $ 18 | $ 73 | 186 | 198 |
BioNTech [Member] | Business Innovation Segment [Member] | Pfizer CentreOne [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | $ 11 | $ 108 | |||
[1] See Note 13A above for information about Business Innovation. Prior-period financial information has been revised to reflect the current period presentation. In March 2023, it was announced that our alliance with Merck KGaA to co-develop and co-commercialize Bavencio (avelumab) would terminate. Effective June 30, 2023, Merck KGaA took full control of the global commercialization of Bavencio. Beginning in the third quarter of 2023, the related profit share was replaced by a 15% royalty to Pfizer on net sales of Bavencio, which is recorded in Other (income)/deductions––net . We and Merck KGaA will continue to operationalize our respective ongoing clinical trials for Bavencio; and Merck KGaA will control all future R&D activities. |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event [Member] treatmentCourse in Millions, $ in Millions | Oct. 13, 2023 USD ($) treatmentCourse |
Paxlovid, EUA-Labeled [Member] | |
Subsequent Event [Line Items] | |
Estimated government emergency use authorization inventory to be returned to company, number of treatment courses | 7.9 |
Reversal of revenue | $ | $ 4,200 |
Paxlovid, NDA-Labeled [Member] | |
Subsequent Event [Line Items] | |
Supply commitment, minimum amount committed, number of treatment courses | 8.9 |
Paxlovid, NDA-Labeled, Commercial Supply [Member] | |
Subsequent Event [Line Items] | |
Supply commitment, minimum amount committed, number of treatment courses | 7.9 |
Paxlovid, NDA-Labeled, U.S. Strategic National Stockpile [Member] | |
Subsequent Event [Line Items] | |
Supply commitment, minimum amount committed, number of treatment courses | 1 |