Other Financial Information (Tables)

9 Months Ended

Oct. 01, 2023

Other Financial Information [Abstract]

Schedule of Components of Inventories, Current

The following summarizes the components of Inventories:
(MILLIONS)	October 1, 2023		December 31, 2022
Finished goods	$	2,892	$	2,603
Work-in-process	6,515		5,519
Raw materials and supplies	797		859
Inventories(a)	$	10,204	$	8,981
Noncurrent inventories not included above(b)	$	1,416	$	5,827

(a)The increase from December 31, 2022 of $1.2 billion reflects higher inventory levels for certain products due to supply recovery, new product launches and changes in net market demand, partially offset by $0.7 billion in inventory write-offs for Paxlovid and Comirnaty.

(b)Included in Other noncurrent assets. The decrease from December 31, 2022 of $4.4 billion is primarily driven by inventory write-offs for Paxlovid of $4.2 billion and, to a lesser extent, inventory write-offs for Comirnaty of $0.7 billion, partially offset by increases due to inventory build. The charges and

corresponding inventory write-offs were based on our analysis of Paxlovid and Comirnaty inventory levels as of October 1, 2023 in relation to our commercial outlook for both products. Based on our current estimates and assumptions, there are no recoverability issues for the remaining amounts.

Schedule of Components of Inventories, Noncurrent

The following summarizes the components of Inventories:
(MILLIONS)	October 1, 2023		December 31, 2022
Finished goods	$	2,892	$	2,603
Work-in-process	6,515		5,519
Raw materials and supplies	797		859
Inventories(a)	$	10,204	$	8,981
Noncurrent inventories not included above(b)	$	1,416	$	5,827

(a)The increase from December 31, 2022 of $1.2 billion reflects higher inventory levels for certain products due to supply recovery, new product launches and changes in net market demand, partially offset by $0.7 billion in inventory write-offs for Paxlovid and Comirnaty.

(b)Included in Other noncurrent assets. The decrease from December 31, 2022 of $4.4 billion is primarily driven by inventory write-offs for Paxlovid of $4.2 billion and, to a lesser extent, inventory write-offs for Comirnaty of $0.7 billion, partially offset by increases due to inventory build. The charges and

corresponding inventory write-offs were based on our analysis of Paxlovid and Comirnaty inventory levels as of October 1, 2023 in relation to our commercial outlook for both products. Based on our current estimates and assumptions, there are no recoverability issues for the remaining amounts.