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Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives - Restructuring Accruals (Detail) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Oct. 02, 2016
Sep. 27, 2015
Oct. 02, 2016
Sep. 27, 2015
Restructuring Reserve [Roll Forward]        
Balance, December 31, 2015 [1]     $ 1,157  
Provision [2] $ 404 $ 469 574 $ 555
Utilization and other [3]     (455)  
Balance, October 2, 2016 [4] 1,275   1,275  
Employee Termination Costs [Member]        
Restructuring Reserve [Roll Forward]        
Balance, December 31, 2015 [1]     1,109  
Provision     464  
Utilization and other [3]     (360)  
Balance, October 2, 2016 [4] 1,213   1,213  
Asset Impairment Charges [Member]        
Restructuring Reserve [Roll Forward]        
Balance, December 31, 2015 [1]     0  
Provision     45  
Utilization and other [3]     (45)  
Balance, October 2, 2016 [4] 0   0  
Exit Costs [Member]        
Restructuring Reserve [Roll Forward]        
Balance, December 31, 2015 [1]     48  
Provision     64  
Utilization and other [3]     (50)  
Balance, October 2, 2016 [4] $ 62   $ 62  
[1] Included in Other current liabilities ($776 million) and Other noncurrent liabilities ($381 million).
[2] In the nine months ended October 2, 2016, Employee terminations represent the expected reduction of the workforce by approximately 2,100 employees, mainly in manufacturing, sales, research and corporate. Employee termination costs are generally recorded when the actions are probable and estimable and include accrued severance benefits, pension and postretirement benefits, many of which may be paid out during periods after termination.The restructuring charges for 2016 are associated with the following:•For the third quarter of 2016, the IH segment ($148 million); the EH segment ($28 million); WRD, GPD and Medical (M) (WRD/GPD/M) ($52 million); manufacturing operations ($108 million); and Corporate ($67 million).•For the first nine months of 2016, IH ($162 million); EH ($19 million); WRD/GPD/M ($104 million); manufacturing operations ($181 million); and Corporate ($107 million).The restructuring charges for 2015 are associated with the following:•For the third quarter of 2015, IH ($9 million); EH ($280 million); WRD/GPD/M ($50 million); manufacturing operations ($26 million); and Corporate ($104 million).•For the first nine months of 2015, IH ($55 million); EH ($288 million); WRD/GPD/M ($66 million); manufacturing operations ($18 million); and Corporate ($127 million).In September 2015, in order to eliminate certain redundancies in Pfizer’s biosimilar drug products pipeline created as a result of the acquisition of Hospira, Pfizer opted to return rights to Celltrion that Hospira had previously acquired to potential biosimilars to Rituxan® (rituximab) and Herceptin® (trastuzumab). As such, upon return of the acquired rights, in the third quarter and first nine months of 2015, we incurred charges of $205 million, which are comprised of (i) a write-off of the applicable IPR&D assets, totaling $160 million, which is included in Asset impairments; (ii) a write-off of amounts prepaid to Celltrion in the amount of $25 million, which is included in Asset impairments; and (iii) a payment to Celltrion of $20 million, which is included in Exit costs.
[3] Includes adjustments for foreign currency translation.
[4] Included in Other current liabilities ($714 million) and Other noncurrent liabilities ($561 million).