Other (Income)/Deductions - Net (Tables)

9 Months Ended

Oct. 03, 2021

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 3, 2021		September 27, 2020		October 3, 2021		September 27, 2020
Interest income	$	(10)	$	(15)	$	(21)	$	(68)
Interest expense	325		345		975		1,102
Net interest expense	315		330		954		1,034
Royalty-related income	(261)		(214)		(649)		(524)
Net (gains)/losses on asset disposals	(1)		(2)		(99)		—
Net (gains)/losses recognized during the period on equity securities(a)	(400)		70		(1,601)		(408)
Income from collaborations, out-licensing arrangements and sales of compound/product rights(b)	(65)		(30)		(317)		(245)
Net periodic benefit costs/(credits) other than service costs(c)	(1,132)		1,043		(1,635)		749
Certain legal matters, net(d)	38		(17)		458		5
Certain asset impairments(e)	—		900		—		900
Consumer Healthcare JV equity method (income)/loss(f)	(105)		(103)		(307)		(196)
Other, net	(84)		(99)		(501)		(202)
Other (income)/deductions––net	$	(1,696)	$	1,878	$	(3,697)	$	1,114

(a)The gains in the third quarter and first nine months of 2021 include, among other things, unrealized gains of $420 million and $1.5 billion, respectively, related to investments in BioNTech and Cerevel Therapeutics, LLC. The losses in the third quarter of 2020 included, among other things, unrealized losses of $131 million related to our investment in Allogene. The gains in the first nine months of 2020 included, among other things, unrealized gains of $397 million related to our investments in Allogene and BioNTech.

(b)The first nine months of 2021 includes, among other things, $188 million of net collaboration income from BioNTech in the first quarter of 2021 related to the COVID-19 vaccine. The first nine months of 2020 mainly included, among other things, (i) an upfront payment to us of $75 million from our sale of our CK1 assets to Biogen, Inc., (ii) $40 million of milestone income from Puma Biotechnology, Inc. related to Neratinib regulatory approvals in the EU and (iii) $30 million of milestone income from Lilly related to the first commercial sale in the U.S. of LOXO-292 for the treatment of RET fusion-positive NSCLC.

(c)Amounts include the impact of a change in accounting principle. See Notes 1C and 10.

(d)The first nine months of 2021 primarily includes an amount to resolve a Multi-District Litigation relating to EpiPen pending against the Company in the U.S. District Court for the District of Kansas for $345 million, which remains subject to court approval. See Note 12A5.

(e)The third quarter and first nine months of 2020 included intangible asset impairment charges of $900 million related to IPR&D assets for unapproved indications of certain cancer medicines, acquired in our Array acquisition, and reflected, among other things, updated commercial forecasts.

(f)See Note 2B.