Discontinued Operations, Equity-Method Investment and Collaborative Arrangement (Tables)

9 Months Ended

Oct. 03, 2021

Business Combinations, Disposal Groups, Including Discontinued Operations, Equity Method Investments And Research And Development Arrangement [Abstract]

Summarized Financial Information of Discontinued Operations

Components of Income/(loss) from discontinued operations––net of tax:
	Three Months Ended(a)				Nine Months Ended(a)
(MILLIONS)	October 3, 2021		September 27, 2020		October 3, 2021		September 27, 2020
Revenues	$	—	$	1,854	$	27	$	5,737
Costs and expenses:
Cost of sales	4		526		18		1,425
Selling, informational and administrative expenses	2		359		(1)		1,061
Research and development expenses	—		60		1		165
Amortization of intangible assets	—		37		—		109
Restructuring charges and certain acquisition-related costs	—		1		—		18
Other (income)/deductions––net	5		233		6		304
Pre-tax income/(loss) from discontinued operations	(10)		639		3		2,654
Provision/(benefit) for taxes on income	(2)		79		(21)		320
Income/(loss) from discontinued operations––net of tax	$	(9)	$	560	$	24	$	2,334

(a)In the third quarter of 2021, Income/(loss) from discontinued operations—net of tax reflects post-closing adjustments directly related to our discontinued operations, including adjustments for legal and tax related matters. In the first nine months of 2021, Income/(loss) from discontinued operations—net of tax includes the operations of the Mylan-Japan collaboration, which terminated during Pfizer’s international first quarter of 2021, and post-closing adjustments directly related to our discontinued operations, including adjustments for tax, benefits and legal related matters. In the three and nine months ended September 27, 2020, Income/(loss) from discontinued operations—net of tax relates to the Upjohn Business and the Mylan-Japan collaboration and includes the change in accounting principle in the first quarter of 2021 to MTM Accounting, which has been applied on a retrospective basis for all prior periods presented. See Note 1C. In the three and nine months ended September 27, 2020, Income/(loss) from discontinued operations—net of tax includes interest expense of $76 million associated with the U.S. dollar and Euro denominated senior unsecured notes issued by Upjohn Inc. and Upjohn Finance B.V. in the second quarter of 2020 and charges of $144 million related to the remeasurement of Euro debt issued by Upjohn Finance B.V. in the second quarter of 2020.

Equity Method Investment

Summarized financial information for our equity method investee, the Consumer Healthcare JV, for the three and nine months ending June 30, 2021, the most recent period available, and for the three and nine months ending June 30, 2020, is as follows:
	Three Months Ended				Nine Months Ended
(MILLIONS)	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
Net sales	$	3,152	$	2,927	$	9,428	$	9,618
Cost of sales	(1,180)		(1,061)		(3,536)		(4,266)
Gross profit	$	1,972	$	1,866	$	5,892	$	5,352
Income from continuing operations	348		524		1,064		995
Net income	348		524		1,064		995
Income attributable to shareholders	330		518		1,012		959