Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives (Tables)

6 Months Ended

Jun. 29, 2025

Restructuring and Related Activities [Abstract]

Schedule of Acquisitions and Cost-Reduction/Productivity Initiatives

The following summarizes costs and credits for acquisitions and cost-reduction/productivity initiatives:
	Three Months Ended				Six Months Ended
(MILLIONS)	June 29, 2025		June 30, 2024		June 29, 2025		June 30, 2024
Restructuring charges/(credits):
Employee terminations	$	(148)	$	1,014	$	236	$	984
Asset impairments	44		41		217		66
Exit costs	30		49		94		63
Restructuring charges/(credits)(a)	(74)		1,104		547		1,114
Transaction costs(b)	—		—		—		5
Integration costs and other(c)	56		150		113		237
Restructuring charges and certain acquisition-related costs	(18)		1,254		660		1,356
Net periodic benefit costs/(credits) recorded in Other (income)/deductions––net	(9)		2		(68)		5
Additional depreciation––asset restructuring recorded in our condensed consolidated statements of operations as follows(d):
Cost of sales	3		1		7		5
Selling, informational and administrative expenses	—		3		—		3
Total additional depreciation––asset restructuring	4		4		7		8
Implementation costs recorded in our condensed consolidated statements of operations as follows(e):
Cost of sales	26		49		46		65
Selling, informational and administrative expenses	14		36		20		65
Research and development expenses	39		20		62		33
Total implementation costs	78		105		128		163
Total costs associated with acquisitions and cost-reduction/productivity initiatives	$	54	$	1,364	$	727	$	1,532

(a)Primarily represents cost-reduction initiatives. Amounts associated with our Biopharma segment: (i) credits of $406 million for the three months ended June 29, 2025 (including credits of $408 million for our Manufacturing Optimization Program and $25 million for our Realigning our Cost Base Program), (ii) charges of $211 million for the six months ended June 29, 2025 (including charges of $562 million for our Realigning our Cost Base Program and credits of $412 million for our Manufacturing Optimization Program) and (iii) charges of $1.1 billion for both the three and six months ended June 30, 2024 (including charges of $1.3 billion for our Manufacturing Optimization Program for both periods presented and credits of $113 million for the three months and $199 million for the six months ended June 30, 2024 for our Realigning our Cost Base Program). For all periods presented, Employee terminations include revisions of estimates of previously recorded accruals for severance benefits, driven in large part by higher-than-expected voluntary attrition.

(b)Represents external costs for banking, legal, accounting and other similar services.

(c)Represents external, incremental costs directly related to integrating acquired businesses, such as expenditures for consulting and the integration of systems and processes, and certain other qualifying costs.

(d)Represents the impact of changes in the estimated useful lives of assets involved in restructuring actions.

(e)Represents incremental costs directly related to implementing our non-acquisition-related cost-reduction/productivity initiatives.

Schedule of Components and Changes in Restructuring Accruals

The following summarizes the components and changes in restructuring accruals:
(MILLIONS)	Employee Termination Costs		Asset Impairment Charges		Exit Costs		Accrual
Balance, December 31, 2024(a)	$	2,046	$	—	$	74	$	2,120
Provision	236		217		94		547
Utilization and other(b)	(494)		(217)		30		(681)
Balance, June 29, 2025(c)	$	1,788	$	—	$	198	$	1,986

(a)Included in Other current liabilities ($1.7 billion) and Other noncurrent liabilities ($437 million).

(b)Other activity includes adjustments for foreign currency translation that are not material to our condensed consolidated financial statements.

(c)Included in Other current liabilities ($1.3 billion) and Other noncurrent liabilities ($685 million).