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Other Consolidated Financial Statement Detail
 9 Months Ended
Sep. 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 September 30,For the Nine Months Ended September 30,
(In millions)2023202220232022
Gain on sale of equity interest in Samsung Bioepis(1)
$— $— $— $(1,505.4)
Litigation settlement agreement— — — 900.0 
Interest income(95.9)(23.9)(252.7)(39.4)
Interest expense63.8 59.9 175.4 191.8 
(Gains) losses on investments, net317.3 (101.8)289.6 167.5 
Foreign exchange (gains) losses, net11.4 11.5 30.8 39.0 
Other, net3.4 (1.7)5.1 25.2 
Total other (income) expense, net$300.0 $(56.0)$248.2 $(221.3)
(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 3, 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 nine months ended September 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 September 30,For the Nine Months Ended September 30,
(In millions)2023202220232022
Net (gains) losses recognized on equity securities$302.0 $(109.8)$273.6 $158.1 
Less: Net (gains) losses realized on equity securities4.4 (0.5)5.3 — 
Net unrealized (gains) losses recognized on equity securities$297.6 $(109.3)$268.3 $158.1 
The net unrealized losses recognized during the three months ended September 30, 2023, primarily reflect a decrease in the aggregate fair value of our investments in Sage, Denali and Sangamo common stock of approximately $295.6 million.
The net unrealized gains recognized during the three months ended September 30, 2022, primarily reflect an increase in the aggregate fair value of our investments in Sage, Ionis, Sangamo and Denali common stock of approximately $112.5 million.
The net unrealized losses recognized during the nine months ended September 30, 2023, primarily reflect a decrease in the aggregate fair value of our investments in Sage, Denali, Sangamo and Ionis common stock of approximately $265.0 million.
The net unrealized losses recognized during the nine months ended September 30, 2022, primarily reflect a decrease in the aggregate fair value of our investments in Denali and Sangamo common stock of approximately $198.0 million, partially offset by an increase in the fair value of Ionis and Sage common stock of approximately $52.2 million.
Accrued Expense and Other
Accrued expense and other consists of the following:
(In millions)As of September 30, 2023As of December 31, 2022
Reata acquisition-related accrued expense
$1,407.0 $— 
Revenue-related reserves for discounts and allowances940.9 891.6 
Employee compensation and benefits276.7 395.6 
Collaboration expense298.3 277.9 
Royalties and licensing fees202.8 209.4 
Other712.7 746.9 
Total accrued expense and other$3,838.4 $2,521.4 
Reata Acquisition-Related Accrued Expense
In connection with our acquisition of Reata we accrued approximately $983.9 million related to Reata's outstanding equity awards, inclusive of employer taxes, of which approximately $980.0 million was subsequently paid in October 2023. As of September 30, 2023, this amount was included within accrued expense and other within our condensed consolidated balance sheets. Additionally, we assumed a payable to Blackstone of approximately $300.0 million related to a one-time contract termination fee to eliminate potential future royalty obligations related to SKYCLARYS, which was triggered as part of the change in control provision under Reata's funding agreement with Blackstone. Payment to Blackstone is expected to be made in November 2023. For additional information on our acquisition of Reata, please read Note 2, Acquisitions, to these condensed consolidated financial statements.
Other Long-term Liabilities
Other long-term liabilities were $747.9 million and $944.2 million as of September 30, 2023 and December 31, 2022, respectively, and included accrued income taxes totaling $393.8 million and $541.7 million, respectively.