Other Consolidated Financial Statement Detail

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Other Consolidated Financial Statement Detail

Other (Income) Expense, Net

Components of other (income) expense, net, are summarized as follows:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
(In millions)	2023		2022		2023		2022
Gain on sale of equity interest in Samsung Bioepis(1)	$	—	$	(1,505.4)	$	—	$	(1,505.4)
Litigation settlement agreement	—		900.0		—		900.0
Interest income	(75.9)		(12.6)		(156.8)		(15.5)
Interest expense	49.1		65.8		111.6		131.9
(Gains) losses on investments, net	(105.4)		78.2		(27.7)		269.3
Foreign exchange (gains) losses, net	8.7		19.2		19.4		27.5
Other, net	2.3		26.2		1.7		26.9
Total other (income) expense, net	$	(121.2)	$	(428.6)	$	(51.8)	$	(165.3)

(1) Reflects the pre-tax gain, net of transaction costs, recognized from the sale of our 49.9% equity interest in Samsung Bioepis to Samsung BioLogics in April 2022. For additional information on the sale of our equity interest in Samsung Bioepis, please read Note 2, Dispositions, to these condensed consolidated financial statements.

The (gains) losses on investments, net, as reflected in the table above, relate to debt securities, equity securities of certain biotechnology companies, venture capital funds where the underlying investments are in equity securities of certain biotechnology companies and non-marketable equity securities.

During the second quarter of 2022 we recorded a pre-tax charge of $900.0 million, plus settlement fees and expenses, related to a litigation settlement agreement to resolve a qui tam litigation relating to conduct prior to 2015. This charge is included within other (income) expense, net in our condensed consolidated statements of income for the three and six months ended June 30, 2022.

The following table summarizes our (gains) losses on investments, net that relate to our equity securities held during the following periods:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
(In millions)	2023		2022		2023		2022
Net (gains) losses recognized on equity securities	$	(106.5)	$	77.2	$	(28.4)	$	267.9
Less: Net (gains) losses realized on equity securities	(0.7)		0.7		0.9		0.5
Net unrealized (gains) losses recognized on equity securities	$	(105.8)	$	76.5	$	(29.3)	$	267.4

The net unrealized gains recognized during the three months ended June 30, 2023, primarily reflect an increase in the aggregate fair value of our investments in Denali and Sage common stock of approximately $117.7 million, partially offset by a decrease in the fair value of Sangamo common stock of approximately $10.9 million.

The net unrealized losses recognized during the three months ended June 30, 2022, primarily reflect a decrease in the aggregate fair value of our investments in Sangamo, Denali and Ionis common stock of approximately $75.3 million, partially offset by an increase in the fair value of Sage common stock of approximately $3.4 million.

The net unrealized gains recognized during the six months ended June 30, 2023, primarily reflect an increase in the aggregate fair value of our investments in Denali and Sage common stock of approximately $78.0 million, partially offset by a decrease in the fair value of Sangamo and Ionis common stock of approximately $47.4 million.

The net unrealized losses recognized during the six months ended June 30, 2022, primarily reflect a decrease in the aggregate fair value of our investments in Denali, Sangamo and Sage common stock of approximately $277.1 million, partially offset by an increase in the fair value of Ionis common stock of approximately $19.0 million.

Accrued Expense and Other

Accrued expense and other consists of the following:

(In millions)	As of June 30, 2023		As of December 31, 2022
Revenue-related reserves for discounts and allowances	$	964.7	$	891.6
Employee compensation and benefits	253.3		395.6
Collaboration expense	332.5		277.9
Royalties and licensing fees	205.0		209.4
Other	725.6		746.9
Total accrued expense and other	$	2,481.1	$	2,521.4

Other Long-term Liabilities

Other long-term liabilities were $776.9 million and $944.2 million as of June 30, 2023 and December 31, 2022, respectively, and included accrued income taxes totaling $383.3 million and $541.7 million, respectively.