ACQUISITIONS, DIVESTITURES AND OTHER ARRANGEMENTS DIVESTITURES (Tables)

9 Months Ended

Sep. 30, 2020

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

Dollars in Millions	Amounts Recognized as of Acquisition Date (as previously reported)		Measurement Period Adjustments		Amounts Recognized as of Acquisition Date (as adjusted)
Cash and cash equivalents	$	11,179	$	—	$	11,179
Receivables	2,652		—		2,652
Inventories	4,511		—		4,511
Property, plant and equipment	1,342		(277)		1,065
Intangible assets	64,027		(100)		63,927
Otezla* assets held-for-sale	13,400		—		13,400
Other assets	3,408		45		3,453
Accounts payable	(363)		—		(363)
Income taxes payable	(2,718)		(47)		(2,765)
Deferred income tax liabilities	(7,339)		2,350		(4,989)
Debt	(21,782)		—		(21,782)
Other liabilities	(4,017)		15		(4,002)
Identifiable net assets acquired	64,300		1,986		66,286
Goodwill	15,969		(1,986)		13,983
Total consideration transferred	$	80,269	$	—	$	80,269

Disposal Groups, Including Discontinued Operations

The following table summarizes the financial impact of divestitures including royalties, which are included in Other (income)/expense, net. Revenue and pretax earnings related to all divestitures and assets held-for-sale were not material in all periods presented (excluding divestiture gains or losses).

	Three Months Ended September 30,
	Net Proceeds(a)				Divestiture (Gains)/Losses				Royalty and Milestone Income
Dollars in Millions	2020		2019		2020		2019		2020		2019
UPSA Business	$	—	$	1,510	$	—	$	(1,176)	$	—	$	—
Diabetes Business	129		163		—		—		(148)		(171)
Erbitux*	3		3		—		—		—		—
Manufacturing Operations	—		—		—		1		—		—
Mature Brands and Other	41		7		1		(4)		(44)		(6)
Total	$	173	$	1,683	$	1	$	(1,179)	$	(192)	$	(177)

	Nine Months Ended September 30,
	Net Proceeds(a)				Divestiture (Gains)/Losses				Royalty and Milestone Income
Dollars in Millions	2020		2019		2020		2019		2020		2019
UPSA Business	$	—	$	1,510	$	—	$	(1,160)	$	—	$	—
Diabetes Business	409		491		—		—		(404)		(497)
Erbitux*	10		11		—		—		—		—
Manufacturing Operations	10		3		(1)		1		—		—
Plavix* and Avapro*/Avalide*	7		—		(12)		—		—		—
Mature Brands and Other	73		9		7		(12)		(76)		(8)
Total	$	509	$	2,024	$	(6)	$	(1,171)	$	(480)	$	(505)

(a)    Includes royalties received subsequent to the related sale of the asset or business.

Licensing and Other Arrangements

The following table summarizes the financial impact of Keytruda* royalties, up-front and milestone licensing fees for products that have not obtained commercial approval, which are included in Other (income)/expense, net.

	Three Months Ended September 30,				Nine Months Ended September 30,
Dollars in Millions	2020		2019		2020		2019
Keytruda* royalties	$	(176)	$	(132)	$	(492)	$	(373)
Up-front licensing fees	—		(24)		(30)		(24)
Contingent milestone income	(16)		(6)		(62)		(15)
Amortization of deferred income	(14)		(14)		(44)		(44)
Other royalties	(5)		(3)		(16)		(6)
Total	$	(211)	$	(179)	$	(644)	$	(462)