XML 27 R42.htm IDEA: XBRL DOCUMENT v2.4.0.8
Other (Income)/Deductions - Net (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 29, 2014
Jun. 30, 2013
Jun. 29, 2014
Jun. 30, 2013
Other Income and Expenses [Abstract]        
Interest income $ (104) $ (102) $ (196) $ (197)
Interest expense(a) 343 [1] 356 [1] 664 [1] 727 [1]
Net interest expense 239 254 468 530
Royalty-related income(b) (239) [2] (120) [2] (487) [2] (183) [2]
Patent litigation settlement income(c) 0 [3] (1,351) [3] 0 [3] (1,351) [3]
Other legal matters, net(d) (2) [4] (12) [4] 692 [4] (95) [4]
(Gain) loss associated with the transfer of certain product rights to an equity-method investment 0 [5] 31 [5] 0 [5] (459) [5]
Net gains on asset disposals(f) (33) [6] (28) [6] (214) [6] (54) [6]
Certain asset impairments and related charges(g) 0 [7] 127 [7] 115 [7] 525 [7]
Costs associated with the Zoetis IPO(h) 0 [8] 0 [8] 0 [8] 18 [8]
Other, net (18) 29 (4) 144
Other (income)/deductions––net $ (53) $ (1,070) $ 570 $ (925)
[1] Interest expense decreased in the second quarter and first six months of 2014 primarily due to the benefit of the effective conversion of some fixed-rate liabilities to floating-rate liabilities.
[2] Royalty-related income increased in the second quarter and first six months of 2014 primarily due to royalties earned on sales of Enbrel in the U.S. and Canada after October 31, 2013. On that date, the co-promotion term of the collaboration agreement for Enbrel in the U.S. and Canada expired, and Pfizer became entitled to royalties for a 36-month period.
[3] In 2013, reflects income from a litigation settlement with Teva Pharmaceuticals Industries Ltd. (Teva) and Sun Pharmaceutical Industries Ltd. (Sun) for patent-infringement damages resulting from their "at-risk" launches of generic Protonix in the U.S. As of June 29, 2014, approximately $256 million is not yet due and is included in Other current assets.
[4] In the first six months of 2014, primarily includes approximately $620 million for Neurontin-related matters (including off-label promotion actions and antitrust actions) and approximately $55 million for an Effexor-related matter. In the first six months of 2013, primarily includes an $80 million insurance recovery related to a certain litigation matter. For additional information, see Note 12A. Commitments and Contingencies: Legal Proceedings.
[5] In the first six months of 2013, represents the gain associated with the transfer of certain product rights to Hisun Pfizer, our 49%-owned equity-method investment in China. For additional information, see Note 2D. Acquisition, Divestiture, Collaborative Arrangement and Equity-Method Investments: Equity-Method Investments.
[6] In the first six months of 2014, primarily includes gains on sales of product rights (approximately $96 million) and gains on sales of investments in equity securities (approximately $98 million).
[7] In the first six months of 2014, includes intangible asset impairment charges of $114 million, virtually all of which relates to an in-process research and development (IPR&D) compound for the treatment of skin fibrosis. The intangible asset impairment charge for the first six months of 2014 is associated with Worldwide Research and Development and reflects, among other things, the impact of changes to the development program. In the first six months of 2013, includes intangible asset impairment charges of $489 million, primarily reflecting (i) $394 million of developed technology rights (for use in the development of bone and cartilage) acquired in connection with our acquisition of Wyeth, and (ii) $81 million related to two IPR&D compounds. The intangible asset impairment charges for 2013 reflect, among other things, updated commercial forecasts. The impairment charges for the first six months of 2013 are associated with the following: Global Innovative Pharmaceutical segment ($432 million), Worldwide Research and Development ($43 million) and Consumer Healthcare ($14 million). In addition, the first six months of 2013 also includes charges of approximately $36 million for certain private equity securities.
[8] Represents costs incurred in connection with the IPO of an approximate 19.8% ownership interest in Zoetis. Includes expenditures for banking, legal, accounting and similar services. For additional information, see Note 2B. Acquisition, Divestiture, Collaborative Arrangement and Equity-Method Investments: Divestiture.