Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 30, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2023 | |
Entity File Number | 001-6351 | |
Entity Registrant Name | ELI LILLY AND COMPANY | |
Entity Incorporation, State or Country Code | IN | |
Entity Tax Identification Number | 35-0470950 | |
Entity Address, Address Line One | Lilly Corporate Center | |
Entity Address, City or Town | Indianapolis | |
Entity Address, State or Province | IN | |
Entity Address, Postal Zip Code | 46285 | |
City Area Code | 317 | |
Local Phone Number | 276-2000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 949,307,237 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000059478 | |
Current Fiscal Year End Date | --12-31 | |
Quarterly Report | true | |
Transition Report | false | |
Common Stock (no par value) | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Stock (no par value) | |
Trading Symbol | LLY | |
Security Exchange Name | NYSE | |
7 1/8% Notes due 2025 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 7 1/8% Notes due 2025 | |
Trading Symbol | LLY25 | |
Security Exchange Name | NYSE | |
1.625% Notes due 2026 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 1.625% Notes due 2026 | |
Trading Symbol | LLY26 | |
Security Exchange Name | NYSE | |
2.125% Notes due 2030 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 2.125% Notes due 2030 | |
Trading Symbol | LLY30 | |
Security Exchange Name | NYSE | |
0.625% Notes due 2031 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 0.625% Notes due 2031 | |
Trading Symbol | LLY31 | |
Security Exchange Name | NYSE | |
0.500% Notes due 2033 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 0.500% Notes due 2033 | |
Trading Symbol | LLY33 | |
Security Exchange Name | NYSE | |
6.77% Notes due 2036 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 6.77% Notes due 2036 | |
Trading Symbol | LLY36 | |
Security Exchange Name | NYSE | |
1.625% Notes due 2043 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 1.625% Notes due 2043 | |
Trading Symbol | LLY43 | |
Security Exchange Name | NYSE | |
1.700% Notes due 2049 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 1.700% Notes due 2049 | |
Trading Symbol | LLY49A | |
Security Exchange Name | NYSE | |
1.125% Notes due 2051 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 1.125% Notes due 2051 | |
Trading Symbol | LLY51 | |
Security Exchange Name | NYSE | |
1.375% Notes due 2061 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 1.375% Notes due 2061 | |
Trading Symbol | LLY61 | |
Security Exchange Name | NYSE |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Operations (Unaudited) - USD ($) shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Revenue (Note 2) | $ 9,498,600,000 | $ 6,941,600,000 | $ 24,770,700,000 | $ 21,239,600,000 |
Costs, expenses, and other: | ||||
Cost of sales | 1,860,100,000 | 1,579,100,000 | 5,294,200,000 | 5,081,700,000 |
Research and development | 2,409,100,000 | 1,802,900,000 | 6,750,700,000 | 5,194,900,000 |
Marketing, selling, and administrative | 1,803,900,000 | 1,614,200,000 | 5,478,500,000 | 4,797,200,000 |
Acquired in-process research and development (Note 3) | 2,975,100,000 | 62,400,000 | 3,177,200,000 | 668,400,000 |
Asset impairment, restructuring, and other special charges (Note 5) | 0 | 206,500,000 | 0 | 206,500,000 |
Other–net, (income) expense (Note 11) | 23,200,000 | 111,000,000 | 24,300,000 | 580,900,000 |
Costs, expenses, and other | 9,071,400,000 | 5,376,100,000 | 20,724,900,000 | 16,529,600,000 |
Income before income taxes | 427,200,000 | 1,565,500,000 | 4,045,800,000 | 4,710,000,000 |
Income taxes (Note 7) | 484,600,000 | 113,800,000 | 995,100,000 | 402,900,000 |
Net income (loss) | $ (57,400,000) | $ 1,451,700,000 | $ 3,050,700,000 | $ 4,307,100,000 |
Earnings (loss) per share: | ||||
Basic (in dollars per share) | $ (0.06) | $ 1.61 | $ 3.39 | $ 4.78 |
Diluted (in dollars per share) | $ (0.06) | $ 1.61 | $ 3.38 | $ 4.76 |
Shares used in calculation of earnings (loss) per share: | ||||
Basic (in shares) | 899.8 | 900.7 | 900.2 | 901.8 |
Diluted (in shares) | 899.8 | 903.8 | 903.1 | 904.5 |
Consolidated Condensed Statem_2
Consolidated Condensed Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (57.4) | $ 1,451.7 | $ 3,050.7 | $ 4,307.1 |
Other comprehensive income (loss), net of tax (Note 10) | 3.8 | (8.1) | 59.7 | 47.3 |
Comprehensive income (loss) | $ (53.6) | $ 1,443.6 | $ 3,110.4 | $ 4,354.4 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Current Assets | ||
Cash and cash equivalents (Note 6) | $ 2,380.8 | $ 2,067 |
Short-term investments (Note 6) | 113.1 | 144.8 |
Accounts receivable, net of allowances of $13.4 (2023) and $16.0 (2022) | 8,167.1 | 6,896 |
Other receivables | 2,196.7 | 1,662.9 |
Inventories | 4,901.4 | 4,309.7 |
Prepaid expenses and other current assets | 5,247.9 | 2,954.1 |
Total current assets | 23,007 | 18,034.5 |
Investments (Note 6) | 2,691.7 | 2,901.8 |
Goodwill | 4,085.2 | 4,073 |
Other intangibles, net | 6,781.7 | 7,206.6 |
Deferred tax assets | 4,574.8 | 2,792.9 |
Property and equipment, net of accumulated depreciation of $10,767.8 (2023) and $10,233.4 (2022) | 11,863.2 | 10,144 |
Other noncurrent assets | 4,911.9 | 4,337 |
Total assets | 57,915.5 | 49,489.8 |
Current Liabilities | ||
Short-term borrowings and current maturities of long-term debt | 2,244.7 | 1,501.1 |
Accounts payable | 2,435.1 | 1,930.6 |
Employee compensation | 1,233.2 | 1,059.8 |
Sales rebates and discounts | 11,522.3 | 8,784.1 |
Dividends payable | 0 | 1,017.2 |
Income taxes payable | 1,977.5 | 475.1 |
Other current liabilities | 2,585.4 | 2,370.3 |
Total current liabilities | 21,998.2 | 17,138.2 |
Other Liabilities | ||
Long-term debt | 17,923.6 | 14,737.5 |
Accrued retirement benefits (Note 8) | 1,311.9 | 1,305.1 |
Long-term income taxes payable | 3,468.3 | 3,709.6 |
Other noncurrent liabilities | 1,906.1 | 1,824 |
Total other liabilities | 24,609.9 | 21,576.2 |
Commitments and Contingencies (Note 9) | ||
Eli Lilly and Company Shareholders' Equity | ||
Common stock | 593.6 | 594.1 |
Additional paid-in capital | 7,160 | 6,921.4 |
Retained earnings | 10,309.9 | 10,042.6 |
Employee benefit trust | (3,013.2) | (3,013.2) |
Accumulated other comprehensive loss (Note 10) | (3,784.9) | (3,844.6) |
Cost of common stock in treasury | (45) | (50.5) |
Total Eli Lilly and Company shareholders' equity | 11,220.4 | 10,649.8 |
Noncontrolling interests | 87 | 125.6 |
Total equity | 11,307.4 | 10,775.4 |
Total liabilities and equity | $ 57,915.5 | $ 49,489.8 |
Consolidated Condensed Balanc_2
Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Receivables, Net, Current [Abstract] | ||
Accounts receivable, allowances | $ 13.4 | $ 16 |
Property and equipment, accumulated depreciation | $ 10,767.8 | $ 10,233.4 |
Consolidated Condensed Statem_3
Consolidated Condensed Statements of Equity - USD ($) shares in Thousands, $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Employee Benefit Trust | Accumulated Other Comprehensive Loss | Common Stock in Treasury | Noncontrolling Interests | ||
Beginning balance (in shares) at Dec. 31, 2021 | 954,116 | |||||||||
Beginning balance (in shares) at Dec. 31, 2021 | [1] | 463 | ||||||||
Beginning balance at Dec. 31, 2021 | $ 596.3 | $ 6,833.4 | $ 8,958.5 | $ (3,013.2) | $ (4,343.1) | $ (52.7) | [1] | $ 175.6 | ||
Increase (Decrease) in Shareholders' Equity [Roll Forward] | ||||||||||
Net income (loss) | 4,307.1 | (63.7) | ||||||||
Other comprehensive (loss) income, net of tax | $ 47.3 | 47.3 | ||||||||
Cash dividends declared | (1,765.9) | |||||||||
Retirement of treasury shares (in shares) | (5,607) | (5,607) | [1] | |||||||
Retirement of treasury shares | $ (3.5) | (1,496.5) | $ 1,500 | [1] | ||||||
Purchase of treasury shares (in shares) | [1] | 5,607 | ||||||||
Purchase of treasury shares | [1] | $ (1,500) | ||||||||
Issuance of stock under employee stock plans, net (in shares) | 2,118 | (13) | [1] | |||||||
Issuance of stock under employee stock plans, net | $ 1.3 | (282.6) | $ 2.2 | [1] | ||||||
Stock-based compensation | 278.2 | |||||||||
Other | 3.3 | (16.1) | ||||||||
Ending balance (in shares) at Sep. 30, 2022 | 950,627 | |||||||||
Ending balance (in shares) at Sep. 30, 2022 | [2] | 450 | ||||||||
Ending balance at Sep. 30, 2022 | $ 594.1 | 6,829 | 10,006.5 | (3,013.2) | (4,295.8) | $ (50.5) | [1] | 95.8 | ||
Beginning balance (in shares) at Jun. 30, 2022 | 950,619 | |||||||||
Beginning balance (in shares) at Jun. 30, 2022 | [2] | 450 | ||||||||
Beginning balance at Jun. 30, 2022 | $ 594.1 | 6,746 | 8,556 | (3,013.2) | (4,287.7) | $ (50.5) | [2] | 114.5 | ||
Increase (Decrease) in Shareholders' Equity [Roll Forward] | ||||||||||
Net income (loss) | 1,451.7 | (15.7) | ||||||||
Other comprehensive (loss) income, net of tax | (8.1) | (8.1) | ||||||||
Issuance of stock under employee stock plans, net (in shares) | 8 | |||||||||
Issuance of stock under employee stock plans, net | (2.1) | |||||||||
Stock-based compensation | 85.1 | |||||||||
Other | (1.2) | (3) | ||||||||
Ending balance (in shares) at Sep. 30, 2022 | 950,627 | |||||||||
Ending balance (in shares) at Sep. 30, 2022 | [2] | 450 | ||||||||
Ending balance at Sep. 30, 2022 | $ 594.1 | 6,829 | 10,006.5 | (3,013.2) | (4,295.8) | $ (50.5) | [1] | 95.8 | ||
Beginning balance (in shares) at Dec. 31, 2022 | 950,632 | |||||||||
Beginning balance (in shares) at Dec. 31, 2022 | [1] | 450 | ||||||||
Beginning balance at Dec. 31, 2022 | 10,775.4 | $ 594.1 | 6,921.4 | 10,042.6 | (3,013.2) | (3,844.6) | $ (50.5) | [1] | 125.6 | |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | ||||||||||
Net income (loss) | 3,050.7 | 4.6 | ||||||||
Other comprehensive (loss) income, net of tax | 59.7 | 59.7 | ||||||||
Cash dividends declared | (2,034) | |||||||||
Retirement of treasury shares (in shares) | (2,299) | (2,299) | ||||||||
Retirement of treasury shares | $ (1.4) | (748.6) | $ 750 | |||||||
Purchase of treasury shares (in shares) | 2,299 | |||||||||
Purchase of treasury shares | $ (750) | |||||||||
Issuance of stock under employee stock plans, net (in shares) | 1,372 | (48) | ||||||||
Issuance of stock under employee stock plans, net | $ 0.9 | (269.7) | $ 8.8 | |||||||
Stock-based compensation | 508.3 | |||||||||
Other | (0.8) | $ (3.3) | (43.2) | |||||||
Ending balance (in shares) at Sep. 30, 2023 | 949,705 | |||||||||
Ending balance (in shares) at Sep. 30, 2023 | [2] | 402 | ||||||||
Ending balance at Sep. 30, 2023 | 11,307.4 | $ 593.6 | 7,160 | 10,309.9 | (3,013.2) | (3,784.9) | $ (45) | [1] | 87 | |
Beginning balance (in shares) at Jun. 30, 2023 | 949,688 | |||||||||
Beginning balance (in shares) at Jun. 30, 2023 | [2] | 402 | ||||||||
Beginning balance at Jun. 30, 2023 | $ 593.6 | 6,948.6 | 10,368.5 | (3,013.2) | (3,788.7) | $ (45) | [2] | 85.5 | ||
Increase (Decrease) in Shareholders' Equity [Roll Forward] | ||||||||||
Net income (loss) | (57.4) | 4.1 | ||||||||
Other comprehensive (loss) income, net of tax | 3.8 | 3.8 | ||||||||
Issuance of stock under employee stock plans, net (in shares) | 17 | |||||||||
Issuance of stock under employee stock plans, net | (4.2) | |||||||||
Stock-based compensation | 215.6 | |||||||||
Other | (1.2) | (2.6) | ||||||||
Ending balance (in shares) at Sep. 30, 2023 | 949,705 | |||||||||
Ending balance (in shares) at Sep. 30, 2023 | [2] | 402 | ||||||||
Ending balance at Sep. 30, 2023 | $ 11,307.4 | $ 593.6 | $ 7,160 | $ 10,309.9 | $ (3,013.2) | $ (3,784.9) | $ (45) | [1] | $ 87 | |
[1]As of September 30, 2023, there was $2.50 billion remaining under our $5.00 billion share repurchase program authorized in May 2021.[2]As of September 30, 2023, there was $2.50 billion remaining under our $5.00 billion share repurchase program authorized in May 2021. |
Consolidated Condensed Statem_4
Consolidated Condensed Statements of Equity (Parenthetical) - USD ($) | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | May 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividend declared per share (in dollars per share) | $ 2.26 | $ 1.96 | |
Stock repurchase program, remaining authorized amount | $ 2,500,000,000 | ||
Stock repurchase program, authorized amount | $ 5,000,000,000 |
Consolidated Condensed Statem_5
Consolidated Condensed Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash Flows from Operating Activities | ||
Net income | $ 3,050.7 | $ 4,307.1 |
Adjustments to Reconcile Net Income to Cash Flows from Operating Activities: | ||
Depreciation and amortization | 1,139.6 | 1,147.5 |
Change in deferred income taxes | (1,834.8) | (2,195.6) |
Stock-based compensation expense | 508.3 | 278.2 |
Net investment losses | 144.5 | 676.4 |
Gains on sale of product rights | (1,853.9) | (94.5) |
Acquired in-process research and development | 3,177.2 | 668.4 |
Other changes in operating assets and liabilities, net of acquisitions and divestitures | 117.2 | 823.4 |
Other operating activities, net | 103.2 | 312.1 |
Net Cash Provided by Operating Activities | 4,552 | 5,923 |
Cash Flows from Investing Activities | ||
Purchases of property and equipment | (2,377) | (1,353.6) |
Proceeds from sales and maturities of short-term investments | 155.2 | 83.1 |
Purchases of short-term investments | (79.2) | (65) |
Proceeds from sales of and distributions from noncurrent investments | 476.2 | 251.6 |
Purchases of noncurrent investments | (474.8) | (474.1) |
Proceeds from sale of product rights | 1,604.3 | 65.8 |
Purchases of in-process research and development | (3,364) | (993.1) |
Other investing activities, net | (169.1) | (334.1) |
Net Cash Used for Investing Activities | (4,228.4) | (2,819.4) |
Cash Flows from Financing Activities | ||
Dividends paid | (3,051.2) | (2,651.4) |
Net change in short-term borrowings | 97 | 1,741.3 |
Proceeds from issuance of long-term debt | 3,958.5 | 0 |
Repayments of long-term debt | 0 | (1,560) |
Purchases of common stock | (750) | (1,500) |
Other financing activities, net | (303.4) | (295.2) |
Net Cash Used for Financing Activities | (49.1) | (4,265.3) |
Effect of exchange rate changes on cash and cash equivalents | 39.3 | (39.4) |
Net increase (decrease) in cash and cash equivalents | 313.8 | (1,201.1) |
Cash and cash equivalents at January 1 | 2,067 | 3,818.5 |
Cash and Cash Equivalents at September 30 | $ 2,380.8 | $ 2,617.4 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation We have prepared the accompanying unaudited consolidated condensed financial statements in accordance with the requirements of Form 10-Q and, therefore, they do not include all information and footnotes necessary for a fair presentation of financial position, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States (GAAP). In our opinion, the consolidated condensed financial statements reflect all adjustments (including those that are normal and recurring) that are necessary for a fair presentation of the results of operations for the periods shown. In preparing financial statements in conformity with GAAP, we must make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, expenses, and related disclosures at the date of the financial statements and during the reporting period. Actual results could differ from those estimates. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with our consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2022. We issued our financial statements by filing them with the Securities and Exchange Commission and have evaluated subsequent events up to the time of the filing of this Quarterly Report on Form 10-Q. All per-share amounts, unless otherwise noted in the footnotes, are presented on a diluted basis; that is, based on the weighted-average number of common shares outstanding plus the effect of incremental shares from our stock-based compensation programs, if dilutive. We operate as a single operating segment engaged in the discovery, development, manufacturing, marketing, and sales of pharmaceutical products worldwide. A global research and development organization and a supply chain organization are responsible for the discovery, development, manufacturing, and supply of our products. Regional commercial organizations market, distribute, and sell the products. The business is also supported by global corporate staff functions. Our determination that we operate as a single segment is consistent with the financial information regularly reviewed by the chief operating decision maker for purposes of evaluating performance, allocating resources, setting incentive compensation targets, and planning and forecasting for future periods. Research and Development Expenses and Acquired In-Process Research and Development (IPR&D) Research and development costs are expensed as incurred. Research and development costs consist of expenses incurred in performing research and development activities, including but not limited to, compensation and benefits, facilities and overhead expense, clinical trial expense, and fees paid to contract research organizations. Acquired IPR&D includes the initial costs and development milestones incurred related to externally developed IPR&D projects, acquired directly in a transaction other than a business combination, that do not have an alternative future use. Development milestones are milestone payment obligations that are incurred prior to regulatory approval of the compound and are expensed when the event triggering an obligation to pay the milestone occurs. Reclassifications Certain reclassifications have been made to prior periods in the consolidated condensed financial statements and accompanying notes to conform with the current presentation. Development milestone payments related to externally developed IPR&D projects, acquired directly in a transaction other than a business combination, were previously included in cash flows from operating activities in the consolidated condensed statements of cash flows and are now included in purchases of IPR&D in cash flows from investing activities. The reclassification resulted in an increase to net cash provided by operating activities and net cash used in investing activities of $418.3 million for the nine |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The following table summarizes our revenue recognized in our consolidated condensed statements of operations: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Net product revenue $ 7,306.2 $ 6,119.2 $ 20,524.2 $ 19,123.0 Collaboration and other revenue (1) 2,192.4 822.4 4,246.5 2,116.6 Revenue $ 9,498.6 $ 6,941.6 $ 24,770.7 $ 21,239.6 (1) Collaboration and other revenue associated with prior period transfers of intellectual property was $31.3 million and $86.8 million during the three and nine months ended September 30, 2023, respectively, and $43.3 million and $130.9 million during the three and nine months ended September 30, 2022, respectively. We recognize revenue primarily from two different types of contracts, product sales to customers (net product revenue) and collaborations and other arrangements. Revenue recognized from collaborations and other arrangements includes our share of profits from the collaborations, as well as royalties, upfront and milestone payments we receive under these types of contracts. See Note 4 for additional information related to our collaborations and other arrangements. Collaboration and other revenue disclosed above includes the revenue from the Jardiance ® and Trajenta ® families of products resulting from our collaboration with Boehringer Ingelheim, as well as from the sales of rights for the olanzapine portfolio, including Zyprexa ® , and for Baqsimi ® , all of which are discussed in Note 4. Substantially all of the remainder of collaboration and other revenue is related to contracts accounted for as contracts with customers. Adjustments to Revenue Adjustments to revenue recognized as a result of changes in estimates for our most significant United States (U.S.) sales returns, rebates, and discounts liability balances for products shipped in previous periods were 2 percent and 3 percent of U.S. revenue during the three months ended September 30, 2023 and 2022, respectively, and less than 1 percent of U.S. revenue during the nine months ended September 30, 2023 and 2022. Contract Liabilities Our contract liabilities result from arrangements where we have received payment in advance of performance under the contract and do not include sales returns, rebates, and discounts. Changes in contract liabilities are generally due to either receipt of additional advance payments or our performance under the contract. The following table summarizes contract liability balances: September 30, 2023 December 31, 2022 Contract liabilities $ 200.7 $ 219.2 During the three and nine months ended September 30, 2023 and 2022, revenue recognized from contract liabilities as of the beginning of the respective year was not material. Revenue expected to be recognized in the future from contract liabilities as the related performance obligations are satisfied is not expected to be material in any one year. Disaggregation of Revenue The following table summarizes revenue, including net product revenue and collaboration and other revenue, by product for the three months ended September 30, 2023 and 2022: Three Months Ended September 30, 2023 2022 U.S. Outside U.S. Total U.S. Outside U.S. Total Diabetes: Trulicity ® $ 1,259.0 $ 414.6 $ 1,673.6 $ 1,418.3 $ 432.0 $ 1,850.4 Mounjaro ® 1,277.0 132.4 1,409.3 97.3 90.0 187.3 Jardiance (1) 415.9 284.8 700.8 350.9 222.4 573.3 Humalog ® (2) 194.2 201.2 395.4 248.1 198.8 447.0 Humulin ® 145.5 61.2 206.7 169.5 68.7 238.2 Basaglar ® (3) 111.4 68.2 179.6 124.8 68.1 193.0 Baqsimi 3.8 9.3 13.1 35.2 7.8 43.0 Other diabetes 53.2 88.6 141.9 44.5 86.2 130.4 Total diabetes 3,460.0 1,260.3 4,720.4 2,488.6 1,174.0 3,662.6 Oncology: Verzenio ® 684.6 355.7 1,040.2 414.8 202.9 617.7 Cyramza ® 88.0 136.1 224.1 87.5 144.6 232.1 Erbitux ® 134.0 19.9 153.9 126.3 18.7 144.9 Alimta ® 21.2 32.3 53.5 64.6 54.8 119.4 Other oncology 73.8 201.5 275.4 39.5 139.6 179.2 Total oncology 1,001.6 745.5 1,747.1 732.7 560.6 1,293.3 Immunology: Taltz ® 509.3 234.9 744.2 493.8 186.1 679.9 Olumiant ® (4) 65.7 165.7 231.4 22.9 160.0 182.9 Other immunology — 11.4 11.4 — 3.6 3.6 Total immunology 575.0 412.0 986.9 516.7 349.7 866.4 Neuroscience: Zyprexa (5) 49.9 1,431.5 1,481.4 8.0 73.4 81.4 Emgality ® 126.5 42.1 168.5 114.0 54.6 168.5 Other neuroscience 31.0 87.0 118.2 23.8 99.4 123.3 Total neuroscience 207.4 1,560.6 1,768.1 145.8 227.4 373.2 Other: Forteo ® 101.2 45.2 146.4 112.7 64.4 177.1 Cialis ® 4.9 82.0 86.8 8.1 107.7 115.7 COVID-19 antibodies (6) — — — 386.6 — 386.6 Other 18.0 24.8 42.9 30.9 35.7 66.6 Total other 124.1 152.0 276.1 538.3 207.8 746.0 Revenue $ 5,368.1 $ 4,130.5 $ 9,498.6 $ 4,422.1 $ 2,519.4 $ 6,941.6 Numbers may not add due to rounding. (1) Jardiance revenue includes Glyxambi ® , Synjardy ® , and Trijardy ® XR. (2) Humalog revenue includes insulin lispro. (3) Basaglar revenue includes Rezvoglar ® . (4) Olumiant revenue includes sales for baricitinib that were made pursuant to Emergency Use Authorization (EUA) or similar regulatory authorizations. (5) Zyprexa revenue includes sale of rights for the olanzapine portfolio. (6) COVID-19 antibodies include sales for bamlanivimab administered alone, for bamlanivimab and etesevimab administered together, and for bebtelovimab and were made pursuant to EUAs or similar regulatory authorizations. The following table summarizes revenue, including net product revenue and collaboration and other revenue, by product for the nine months ended September 30, 2023 and 2022: Nine Months Ended September 30, 2023 2022 U.S. Outside U.S. Total U.S. Outside U.S. Total Diabetes: Trulicity $ 4,177.7 $ 1,285.6 $ 5,463.2 $ 4,162.4 $ 1,341.1 $ 5,503.5 Mounjaro 2,729.1 228.4 2,957.5 109.9 93.3 203.2 Jardiance (1) 1,131.5 815.1 1,946.6 831.4 622.4 1,453.7 Humalog (2) 695.6 601.2 1,296.8 855.8 656.4 1,512.3 Humulin 488.6 175.4 664.0 562.3 223.1 785.4 Baqsimi 633.1 25.4 658.4 79.5 21.7 101.2 Basaglar (3) 329.7 213.4 543.1 339.9 218.8 558.7 Other diabetes 131.1 260.7 392.0 116.1 254.8 371.0 Total diabetes 10,316.4 3,605.2 13,921.6 7,057.3 3,431.6 10,489.0 Oncology: Verzenio 1,734.2 983.7 2,717.9 1,100.5 575.1 1,675.6 Cyramza 303.6 417.5 721.1 259.3 434.3 693.6 Erbitux 398.3 48.0 446.3 361.0 47.4 408.3 Alimta 59.2 113.5 172.6 490.5 200.5 691.1 Other oncology 194.7 521.4 716.2 124.1 422.3 546.4 Total oncology 2,690.0 2,084.1 4,774.1 2,335.4 1,679.6 4,015.0 Immunology: Taltz 1,293.8 681.2 1,975.0 1,212.6 561.6 1,774.2 Olumiant (4) 158.8 520.4 679.2 104.6 520.1 624.7 Other immunology — 39.0 39.0 0.1 12.1 12.1 Total immunology 1,452.6 1,240.6 2,693.2 1,317.3 1,093.8 2,411.0 Neuroscience: Zyprexa (5) 69.1 1,581.9 1,651.0 26.2 235.5 261.7 Emgality 354.0 138.2 492.2 330.8 144.4 475.2 Other neuroscience 89.7 282.9 372.6 87.0 337.0 424.0 Total neuroscience 512.8 2,003.0 2,515.8 444.0 716.9 1,160.9 Other: Forteo 269.2 147.6 416.8 261.4 191.7 453.0 Cialis 21.6 281.1 302.7 25.8 454.7 480.4 COVID-19 antibodies (6) — — — 1,970.9 14.7 1,985.5 Other 73.0 73.4 146.5 119.4 125.1 244.8 Total other 363.8 502.1 866.0 2,377.5 786.2 3,163.7 Revenue $ 15,335.6 $ 9,435.0 $ 24,770.7 $ 13,531.5 $ 7,708.1 $ 21,239.6 Numbers may not add due to rounding. (1) Jardiance revenue includes Glyxambi, Synjardy, and Trijardy XR. (2) Humalog revenue includes insulin lispro. (3) Basaglar revenue includes Rezvoglar. (4) Olumiant revenue includes sales for baricitinib that were made pursuant to EUA or similar regulatory authorizations. (5) Zyprexa revenue includes sale of rights for the olanzapine portfolio. (6) COVID-19 antibodies include sales for bamlanivimab administered alone, for bamlanivimab and etesevimab administered together, and for bebtelovimab and were made pursuant to EUAs or similar regulatory authorizations. The following table summarizes revenue by geographical area: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Revenue (1) : U.S. $ 5,368.1 $ 4,422.1 $ 15,335.6 $ 13,531.5 Europe 2,568.6 1,056.4 4,837.1 3,224.8 Japan 390.8 487.7 1,233.6 1,352.3 China 390.8 343.4 1,162.6 1,102.0 Other foreign countries 780.3 632.0 2,201.8 2,029.1 Revenue $ 9,498.6 $ 6,941.6 $ 24,770.7 $ 21,239.6 Numbers may not add due to rounding. (1) Revenue is attributed to the countries based on the location of the customer or other party. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions We engage in various forms of business development activities to enhance our product pipeline, including acquisitions, collaborations, investments, and licensing arrangements. In connection with these arrangements, our partners may be entitled to future royalties and/or commercial milestones based on sales should products be approved for commercialization and/or milestones based on the successful progress of compounds through the development process. In December 2022, we completed the acquisition of Akouos, Inc. (Akouos). This transaction, as further discussed below in Acquisition of a Business, was accounted for as a business combination under the acquisition method of accounting. Under this method, the assets acquired and liabilities assumed were recorded at their respective fair values as of the acquisition date in our consolidated condensed financial statements. The determination of estimated fair value required management to make significant estimates and assumptions. The excess of the purchase price over the fair value of the acquired net assets, where applicable, has been recorded as goodwill. The results of operations of this acquisition is included in our consolidated condensed financial statements from the date of acquisition. We also acquired assets in development which are further discussed below in Asset Acquisitions. Upon each acquisition, the cost allocated to acquired IPR&D was immediately expensed if the compound has no alternative future use. Milestone payment obligations incurred prior to regulatory approval of the compound are expensed as acquired IPR&D when the event triggering an obligation to pay the milestone occurs. We recognized acquired IPR&D charges of $2.98 billion and $3.18 billion for the three and nine months ended September 30, 2023, respectively, and $62.4 million and $668.4 million for the three and nine months ended September 30, 2022, respectively. Acquisition of a Business Akouos Acquisition Overview of Transaction In December 2022, we acquired all shares of Akouos for a purchase price that included $12.50 per share in cash (or an aggregate of $327.2 million, net of cash acquired) plus one non-tradable contingent value right (CVR) per share. The CVR entitles the Akouos shareholders up to an additional $3.00 per share in cash (or an aggregate of approximately $122 million) payable, subject to certain terms and conditions, upon the achievement of certain specified milestones. Under the terms of the agreement, we acquired potential gene therapy treatments for hearing loss and other inner ear conditions. The lead gene therapies in clinical development that we acquired included GJB2 (which encodes connexin 26) for a common form of monogenic deafness and hearing loss; AK-OTOF for hearing loss due to mutations in the otoferlin gene; AK-CLRN1 for Usher Type 3A, an autosomal recessive disorder characterized by progressive loss of both hearing and vision; and AK-antiVEGF for vestibular schwannoma. Assets Acquired and Liabilities Assumed Our access to Akouos information was limited prior to the acquisition. As a consequence, we are in the process of determining fair values and tax bases of a significant portion of the assets acquired and liabilities assumed, including the identification and valuation of intangible assets and tax exposures. The final determination of these amounts will be completed as soon as possible but no later than one year from the acquisition date. The final determination may result in asset and liability fair values and tax bases that differ from the preliminary estimates and require changes to the preliminary amounts recognized. The following table summarizes the preliminary amounts recognized for assets acquired and liabilities assumed as of the acquisition date: Estimated Fair Value at December 1, 2022 Cash $ 153.2 Acquired IPR&D (1) 184.0 Goodwill (2) 187.1 Other assets and liabilities, net 23.0 Acquisition date fair value of consideration transferred 547.3 Less: Cash acquired (153.2) Fair value of CVR liability (3) (66.9) Cash paid, net of cash acquired $ 327.2 (1) Acquired IPR&D intangibles primarily relate to GJB2. (2) The goodwill recognized from this acquisition is attributable primarily to future unidentified projects and products and the assembled workforce for Akouos and is not deductible for tax purposes. (3) See Note 6 for a discussion on the estimation of the CVR liability. The results of operations attributable to Akouos for the three and nine months ended September 30, 2023 were immaterial. Pro forma information has not been included as this acquisition did not have a material impact on our consolidated condensed statements of operations for the three and nine months ended September 30, 2022. Asset Acquisitions The following table summarizes our significant asset acquisitions during the nine months ended September 30, 2023 and 2022: Counterparty Compound(s), Therapy or Asset Acquisition Month Phase of Development (1) Acquired IPR&D Expense DICE Therapeutics, Inc. DC-806, an oral IL-17 inhibitor for the treatment of chronic diseases in immunology August 2023 Phase II $ 1,915.5 Versanis Bio, Inc. Bimagrumab, a monoclonal antibody for the treatment of people living with obesity and obesity-related complications August 2023 Phase II 604.1 Emergence Therapeutics AG ETx-22, a Nectin-4 antibody-drug conjugate for the treatment of urothelial cancer August 2023 Pre-clinical 406.5 BioMarin Pharmaceutical Inc. Priority Review Voucher February 2022 Not applicable 110.0 (1) The phase of development presented is as of the date of the arrangement and represents the phase of development of the most advanced asset acquired, where applicable. In connection with our acquisition of Petra Pharma Corporation (Petra), we were required to make milestone payments to Petra shareholders contingent upon the occurrence of certain future events linked to the success of the mutant-selective PI3K α inhibitor. In the second quarter of 2022, we entered into agreements with substantially all Petra shareholders to acquire their rights to receive any future milestone payments in exchange for a one-time payment. As a result of these agreements, we recognized a charge of $333.8 million as acquired IPR&D during the nine months ended September 30, 2022. Any remaining contingent milestones payments linked to the success of the mutant-selective PI3Kα inhibitor are not expected to be material. We recognized no other significant acquired IPR&D charges during the three and nine months ended September 30, 2023 and 2022. Subsequent Events In October 2023, we announced an agreement to acquire POINT Biopharma Global Inc. (POINT) for a purchase price of $12.50 per share in cash (an aggregate of approximately $1.4 billion) payable at closing. The proposed acquisition is subject to customary closing conditions, including the tender of a majority of the outstanding shares of POINT's common stock, the receipt of required antitrust clearance, and license transfer approval from the U.S. Nuclear Regulatory Commission. |
Acquisitions | Acquisitions We engage in various forms of business development activities to enhance our product pipeline, including acquisitions, collaborations, investments, and licensing arrangements. In connection with these arrangements, our partners may be entitled to future royalties and/or commercial milestones based on sales should products be approved for commercialization and/or milestones based on the successful progress of compounds through the development process. In December 2022, we completed the acquisition of Akouos, Inc. (Akouos). This transaction, as further discussed below in Acquisition of a Business, was accounted for as a business combination under the acquisition method of accounting. Under this method, the assets acquired and liabilities assumed were recorded at their respective fair values as of the acquisition date in our consolidated condensed financial statements. The determination of estimated fair value required management to make significant estimates and assumptions. The excess of the purchase price over the fair value of the acquired net assets, where applicable, has been recorded as goodwill. The results of operations of this acquisition is included in our consolidated condensed financial statements from the date of acquisition. We also acquired assets in development which are further discussed below in Asset Acquisitions. Upon each acquisition, the cost allocated to acquired IPR&D was immediately expensed if the compound has no alternative future use. Milestone payment obligations incurred prior to regulatory approval of the compound are expensed as acquired IPR&D when the event triggering an obligation to pay the milestone occurs. We recognized acquired IPR&D charges of $2.98 billion and $3.18 billion for the three and nine months ended September 30, 2023, respectively, and $62.4 million and $668.4 million for the three and nine months ended September 30, 2022, respectively. Acquisition of a Business Akouos Acquisition Overview of Transaction In December 2022, we acquired all shares of Akouos for a purchase price that included $12.50 per share in cash (or an aggregate of $327.2 million, net of cash acquired) plus one non-tradable contingent value right (CVR) per share. The CVR entitles the Akouos shareholders up to an additional $3.00 per share in cash (or an aggregate of approximately $122 million) payable, subject to certain terms and conditions, upon the achievement of certain specified milestones. Under the terms of the agreement, we acquired potential gene therapy treatments for hearing loss and other inner ear conditions. The lead gene therapies in clinical development that we acquired included GJB2 (which encodes connexin 26) for a common form of monogenic deafness and hearing loss; AK-OTOF for hearing loss due to mutations in the otoferlin gene; AK-CLRN1 for Usher Type 3A, an autosomal recessive disorder characterized by progressive loss of both hearing and vision; and AK-antiVEGF for vestibular schwannoma. Assets Acquired and Liabilities Assumed Our access to Akouos information was limited prior to the acquisition. As a consequence, we are in the process of determining fair values and tax bases of a significant portion of the assets acquired and liabilities assumed, including the identification and valuation of intangible assets and tax exposures. The final determination of these amounts will be completed as soon as possible but no later than one year from the acquisition date. The final determination may result in asset and liability fair values and tax bases that differ from the preliminary estimates and require changes to the preliminary amounts recognized. The following table summarizes the preliminary amounts recognized for assets acquired and liabilities assumed as of the acquisition date: Estimated Fair Value at December 1, 2022 Cash $ 153.2 Acquired IPR&D (1) 184.0 Goodwill (2) 187.1 Other assets and liabilities, net 23.0 Acquisition date fair value of consideration transferred 547.3 Less: Cash acquired (153.2) Fair value of CVR liability (3) (66.9) Cash paid, net of cash acquired $ 327.2 (1) Acquired IPR&D intangibles primarily relate to GJB2. (2) The goodwill recognized from this acquisition is attributable primarily to future unidentified projects and products and the assembled workforce for Akouos and is not deductible for tax purposes. (3) See Note 6 for a discussion on the estimation of the CVR liability. The results of operations attributable to Akouos for the three and nine months ended September 30, 2023 were immaterial. Pro forma information has not been included as this acquisition did not have a material impact on our consolidated condensed statements of operations for the three and nine months ended September 30, 2022. Asset Acquisitions The following table summarizes our significant asset acquisitions during the nine months ended September 30, 2023 and 2022: Counterparty Compound(s), Therapy or Asset Acquisition Month Phase of Development (1) Acquired IPR&D Expense DICE Therapeutics, Inc. DC-806, an oral IL-17 inhibitor for the treatment of chronic diseases in immunology August 2023 Phase II $ 1,915.5 Versanis Bio, Inc. Bimagrumab, a monoclonal antibody for the treatment of people living with obesity and obesity-related complications August 2023 Phase II 604.1 Emergence Therapeutics AG ETx-22, a Nectin-4 antibody-drug conjugate for the treatment of urothelial cancer August 2023 Pre-clinical 406.5 BioMarin Pharmaceutical Inc. Priority Review Voucher February 2022 Not applicable 110.0 (1) The phase of development presented is as of the date of the arrangement and represents the phase of development of the most advanced asset acquired, where applicable. In connection with our acquisition of Petra Pharma Corporation (Petra), we were required to make milestone payments to Petra shareholders contingent upon the occurrence of certain future events linked to the success of the mutant-selective PI3K α inhibitor. In the second quarter of 2022, we entered into agreements with substantially all Petra shareholders to acquire their rights to receive any future milestone payments in exchange for a one-time payment. As a result of these agreements, we recognized a charge of $333.8 million as acquired IPR&D during the nine months ended September 30, 2022. Any remaining contingent milestones payments linked to the success of the mutant-selective PI3Kα inhibitor are not expected to be material. We recognized no other significant acquired IPR&D charges during the three and nine months ended September 30, 2023 and 2022. Subsequent Events In October 2023, we announced an agreement to acquire POINT Biopharma Global Inc. (POINT) for a purchase price of $12.50 per share in cash (an aggregate of approximately $1.4 billion) payable at closing. The proposed acquisition is subject to customary closing conditions, including the tender of a majority of the outstanding shares of POINT's common stock, the receipt of required antitrust clearance, and license transfer approval from the U.S. Nuclear Regulatory Commission. |
Collaborations and Other Arrang
Collaborations and Other Arrangements | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Collaborations and Other Arrangements | Collaborations and Other Arrangements Collaborations and Other Similar Arrangements We often enter into collaborative and other similar arrangements to develop and commercialize drug candidates. Collaborative activities may include research and development, marketing and selling (including promotional activities and physician detailing), manufacturing, and distribution. These arrangements often require milestone as well as royalty or profit-share payments, contingent upon the occurrence of certain future events linked to the success of the asset in development, as well as expense reimbursements from or payments to the collaboration partner. Operating expenses for costs incurred pursuant to these arrangements are reported in their respective expense line item, net of any payments due to or reimbursements due from our collaboration partners, with such reimbursements being recognized at the time the party becomes obligated to pay. Each arrangement is unique in nature, and our more significant arrangements are discussed below. Boehringer Ingelheim Diabetes Collaboration We and Boehringer Ingelheim have a global agreement to jointly develop and commercialize a portfolio of diabetes compounds. Currently included in the collaboration are Boehringer Ingelheim's oral diabetes products: Jardiance, Glyxambi, Synjardy, Trijardy XR, Trajenta, and Jentadueto ® as well as our basal insulins, Basaglar and Rezvoglar. Glyxambi, Synjardy, and Trijardy XR are included in the Jardiance product family. Jentadueto is included in the Trajenta product family. Rezvoglar is included in the Basaglar product family. In connection with the regulatory approvals of Jardiance, Trajenta, and Basaglar in the U.S., Europe, and Japan, milestone payments made for Jardiance and Trajenta were capitalized as intangible assets and are being amortized to cost of sales, and milestone payments received for Basaglar were recorded as contract liabilities and are being amortized to collaboration and other revenue. The milestones pertaining to Jardiance and Trajenta are being amortized through their respective term under the collaboration, which, depending on country or region, is determined based on the latest to occur of (a) a defined number of years following launch date, (b) the expiration of the compound patent, or (c) the expiration of marketing authorization exclusivity. The milestones pertaining to Basaglar are being amortized through 2029. The table below summarizes the net milestones capitalized with respect to the Jardiance and Trajenta families of products and the net milestones deferred with respect to the Basaglar product family as of September 30, 2023 and December 31, 2022: Net Milestones Capitalized (Deferred) (1) September 30, 2023 December 31, 2022 Jardiance $ 101.3 $ 116.2 Trajenta 45.0 63.5 Basaglar (116.6) (130.6) (1) This represents the amounts that have been capitalized (deferred) from the start of this collaboration through the end of the reporting period, net of amount amortized. For the Jardiance product family, we and Boehringer Ingelheim generally share equally the ongoing development and commercialization costs in the most significant markets, and we record our portion of the development and commercialization costs as research and development expense and marketing, selling, and administrative expense, respectively. We receive a royalty on net sales of Boehringer Ingelheim's products in the most significant markets and recognize the royalty as collaboration and other revenue. Boehringer Ingelheim is entitled to potential performance payments depending on the net sales of the Jardiance product family; therefore, our reported revenue for Jardiance may be reduced by any potential performance payments we make related to this product family. The royalty received by us related to the Jardiance product family may also be increased or decreased depending on whether net sales for this product family exceed or fall below certain thresholds. We pay to Boehringer Ingelheim a royalty on net sales for the Basaglar product family in the U.S. We record our sales of the Basaglar product family to third parties as net product revenue with the royalty payments made to Boehringer Ingelheim recorded as cost of sales. The following table summarizes our collaboration and other revenue recognized with respect to the Jardiance and Trajenta families of products and net product revenue recognized with respect to the Basaglar product family: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Jardiance $ 700.8 $ 573.3 $ 1,946.6 $ 1,453.7 Basaglar 179.6 193.0 543.1 558.7 Trajenta 95.2 103.8 284.7 293.0 Olumiant We have a worldwide license and collaboration agreement with Incyte Corporation (Incyte), which provides us the development and commercialization rights to baricitinib, which is branded and trademarked as Olumiant, and certain follow-on compounds, for the treatment of inflammatory and autoimmune diseases and COVID-19. Incyte has the right to receive tiered, double digit royalty payments on worldwide net sales with rates ranging up to 20 percent. Incyte has the right to receive an additional royalty ranging up to the low teens on worldwide net sales for the treatment of COVID-19 that exceed a specified aggregate worldwide net sales threshold. The agreement calls for payments by us to Incyte associated with certain development, success-based regulatory, and sales-based milestones. In connection with the regulatory approvals of Olumiant in the U.S., Europe, and Japan, as well as achievement of a sales-based milestone, milestone payments of $330.0 million were capitalized as intangible assets as of September 30, 2023 and December 31, 2022 and are being amortized to cost of sales through the term of the collaboration. This represents the cumulative amounts that have been capitalized from the start of this collaboration through the end of each reporting period. As of September 30, 2023, Incyte is eligible to receive up to $100.0 million of additional payments from us in potential sales-based milestones. We record our sales of Olumiant, including sales of baricitinib that were made pursuant to EUA or similar regulatory authorizations, to third parties as net product revenue with the royalty payments made to Incyte recorded as cost of sales. The following table summarizes our net product revenue recognized with respect to Olumiant: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Olumiant $ 231.4 $ 182.9 $ 679.2 $ 624.7 COVID-19 Antibodies We have a worldwide license and collaboration agreement with AbCellera Biologics Inc. (AbCellera) to co-develop therapeutic antibodies for the potential prevention and treatment of COVID-19, including bamlanivimab and bebtelovimab, for which we hold development and commercialization rights. AbCellera has the right to receive tiered royalty payments on worldwide net sales of bamlanivimab and bebtelovimab with percentages ranging in the mid-teens to mid-twenties. Royalty payments made to AbCellera were recorded as cost of sales. Pursuant to EUAs or similar regulatory authorizations, we recognized net product revenue associated with our sales of our COVID-19 antibodies of $386.6 million and $1.99 billion, primarily related to bebtelovimab, for the three and nine months ended September 30, 2022, respectively. We did not have sales of our COVID-19 antibodies during the three and nine months ended September 30, 2023. Lebrikizumab We have a worldwide license agreement with F. Hoffmann-La Roche Ltd and Genentech, Inc. (collectively, Roche), which provides us the worldwide development and commercialization rights to lebrikizumab. Roche has the right to receive tiered royalty payments on future worldwide net sales ranging in percentages from high single digits to high teens if the product is successfully commercialized. As of September 30, 2023, Roche is eligible to receive up to $160.0 million of payments from us contingent upon the achievement of success-based regulatory milestones and up to $1.03 billion in a series of sales-based milestones, contingent upon the commercial success of lebrikizumab. We have a license agreement with Almirall, S.A. (Almirall), under which Almirall licensed the rights to develop and commercialize lebrikizumab for the treatment or prevention of dermatology indications, including, but not limited to, atopic dermatitis in Europe. We have the right to receive tiered royalty payments on future net sales in Europe ranging in percentages from low double digits to low twenties if the product is successfully commercialized. As of September 30, 2023, we are eligible to receive payments of $65.0 million from Almirall contingent upon the achievement of success-based regulatory milestones and up to $1.25 billion in a series of sales-based milestones, contingent upon the commercial success of lebrikizumab. During the three and nine months ended September 30, 2023 and 2022, collaboration and other revenue recognized under this license agreement was not material. Divestitures We periodically enter into arrangements to sell the rights of a product. We recognize the net gain or loss associated with the sale of rights of a product as collaboration and other revenue when control of the asset transfers to the other party. We may be eligible to receive milestone payments contingent upon the occurrence of certain future events linked to the success of the divested product. Milestones are included in the transaction price only to the extent a significant reversal in the amount of revenue recognized is not probable of occurring when the uncertainties associated with the milestones are subsequently resolved. We may enter into a supply arrangement as part of a divestiture of product rights. Our sale of product inventory under the supply agreement is recognized as net product revenue at the earlier of when control of the asset transfers to the other party or when the product has no alternative use to us and we have right to payment. Olanzapine Portfolio (including Zyprexa) In July 2023, we sold the rights for the olanzapine portfolio, including Zyprexa, to Cheplapharm Arzneimittel GmbH (Cheplapharm), a European company. Under the terms of the agreement, we received $1.05 billion in cash and will receive an additional $305.0 million in cash upon the one year anniversary of closing. We included both in the transaction price as of September 30, 2023. We are eligible to receive milestone payments of up to $50.0 million, that have not been included in the transaction price as of September 30, 2023. We entered into a supply agreement with Cheplapharm that obligates Cheplapharm to purchase Zyprexa product we are manufacturing at an amount which represents a standalone selling price. As the product we are manufacturing under this supply agreement has no alternative use to us and we have right to payment, we will recognize net product revenue over time as we manufacture the product. During the three and nine months ended September 30, 2023, we recognized $1.42 billion in revenue primarily related to the net gain on the sale of rights for the olanzapine portfolio. Baqsimi In June 2023, we sold the rights for Baqsimi to Amphastar Pharmaceuticals, Inc. (Amphastar). Under the terms of the agreement, we received $500.0 million in cash and will receive an additional $125.0 million in cash upon the one year anniversary of closing. We included both in the transaction price as of September 30, 2023. We are eligible to receive payments of up to $450.0 million in a series of sales-based milestones, that have not been included in the transaction price as of September 30, 2023. We entered into a supply agreement with Amphastar that obligates Amphastar to purchase Baqsimi product we are manufacturing at an amount which represents a standalone selling price. As the product we are manufacturing under this supply agreement has no alternative use to us and we have right to payment, we will recognize net product revenue over time as we manufacture the product. |
Asset Impairment, Restructuring
Asset Impairment, Restructuring, and Other Special Charges | 9 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Asset Impairment, Restructuring, and Other Special Charges | Asset Impairment, Restructuring, and Other Special Charges There were no asset impairment, restructuring, and other special charges recognized during the three and nine months ended September 30, 2023. We recognized $206.5 million of asset impairment, restructuring, and other special charges during the three and nine months ended September 30, 2022, primarily related to an intangible asset impairment for GBA1 Gene Therapy, acquired in the acquisition of Prevail Therapeutics Inc., as a result of changes in key assumptions used in the valuation due to delays in estimated launch timing. |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | Financial Instruments Investments in Equity and Debt Securities Our equity investments are accounted for using three different methods depending on the type of equity investment: • Investments in companies over which we have significant influence but not a controlling interest are accounted for using the equity method, with our share of earnings or losses reported in other-net, (income) expense. • For equity investments that do not have readily determinable fair values, we measure these investments at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer. Any change in recorded value is recorded in other-net, (income) expense. • Our public equity investments are measured and carried at fair value. Any change in fair value is recognized in other-net, (income) expense. We adjust our equity investments without readily determinable fair values based upon changes in the equity instruments' values resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. Downward adjustments resulting from an impairment are recorded based upon impairment considerations, including the financial condition and near-term prospects of the issuer, general market conditions, and industry specific factors. Adjustments recorded for the three and nine months ended September 30, 2023 and 2022 were not material. The net losses recognized in our consolidated condensed statements of operations for equity securities were $62.9 million and $141.5 million for the three and nine months ended September 30, 2023, respectively, and $123.3 million and $667.6 million for the three and nine months ended September 30, 2022, respectively. The net gains (losses) recognized for the three and nine months ended September 30, 2023 and 2022 on equity securities sold during the respective periods were not material. As of September 30, 2023, we had approximately $915 million of unfunded commitments to invest in venture capital funds, which we anticipate will be paid over a period of up to 10 years. We record our available-for-sale debt securities at fair value, with changes in fair value reported as a component of accumulated other comprehensive income (loss). We periodically assess our investment in available-for-sale securities for impairment losses and credit losses. The amount of credit losses are determined by comparing the difference between the present value of future cash flows expected to be collected on these securities and the amortized cost. Factors considered in assessing credit losses include the position in the capital structure, vintage and amount of collateral, delinquency rates, current credit support, and geographic concentration. Impairment and credit losses related to available-for-sale securities were not material for the three and nine months ended September 30, 2023 and 2022. The table below summarizes the contractual maturities of our investments in debt securities measured at fair value as of September 30, 2023: Maturities by Period Total Less Than 1-5 6-10 More Than Fair value of debt securities $ 628.3 $ 88.2 $ 201.6 $ 109.4 $ 229.1 A summary of the amount of unrealized gains and losses in accumulated other comprehensive loss and the fair value of available-for-sale securities in an unrealized gain or loss position follows: September 30, 2023 December 31, 2022 Unrealized gross gains $ 0.1 $ 0.6 Unrealized gross losses 59.7 49.2 Fair value of securities in an unrealized gain position 30.4 46.8 Fair value of securities in an unrealized loss position 559.6 568.7 As of September 30, 2023, the available-for-sale securities in an unrealized loss position include primarily fixed-rate debt securities of varying maturities, which are sensitive to changes in the yield curve and other market conditions. Approximately 99 percent of the fixed-rate debt securities in a loss position are investment-grade debt securities. As of September 30, 2023, we do not intend to sell, and it is not more likely than not that we will be required to sell, the securities in a loss position before the market values recover or the underlying cash flows have been received, and there is no indication of a material default on interest or principal payments for our debt securities. Activity related to our available-for-sale securities was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Proceeds from sales $ 60.0 $ 50.5 $ 121.8 $ 115.6 Realized gross gains on sales 0.3 — 0.6 0.2 Realized gross losses on sales 1.9 7.5 3.6 9.0 Realized gains and losses on sales of available-for-sale investments are computed based upon specific identification of the initial cost adjusted for any other-than-temporary declines in fair value that were recorded in earnings. Fair Value of Investments The following table summarizes certain fair value information at September 30, 2023 and December 31, 2022 for investment assets measured at fair value on a recurring basis, as well as the carrying amount and amortized cost of certain other investments: Fair Value Measurements Using Carrying Cost (1) Quoted Prices in Active Markets for Identical Assets Significant Other Significant Fair September 30, 2023 Cash equivalents (2) $ 1,201.4 $ 1,201.4 $ 1,196.5 $ 4.9 $ — $ 1,201.4 Short-term investments: U.S. government and agency securities $ 30.2 $ 30.6 $ 30.2 $ — $ — $ 30.2 Corporate debt securities 57.4 57.7 — 57.4 — 57.4 Asset-backed securities 0.6 0.6 — 0.6 — 0.6 Other securities 24.9 24.9 — 11.0 13.9 24.9 Short-term investments $ 113.1 Noncurrent investments: U.S. government and agency securities $ 139.3 $ 160.0 $ 139.3 $ — $ — $ 139.3 Corporate debt securities 198.6 222.3 — 198.6 — 198.6 Mortgage-backed securities 144.9 161.9 — 144.9 — 144.9 Asset-backed securities 57.2 59.5 — 57.2 — 57.2 Other securities 171.1 77.0 — 6.2 164.9 171.1 Marketable equity securities 532.0 443.2 532.0 — — 532.0 Equity investments without readily determinable fair values (3) 531.4 Equity method investments (3) 917.2 Noncurrent investments $ 2,691.7 December 31, 2022 Cash equivalents (2) $ 657.4 $ 657.4 $ 650.4 $ 7.0 $ — $ 657.4 Short-term investments: U.S. government and agency securities $ 30.8 $ 31.1 $ 30.8 $ — $ — $ 30.8 Corporate debt securities 53.4 53.5 — 53.4 — 53.4 Asset-backed securities 2.0 2.0 — 2.0 — 2.0 Other securities 58.6 58.6 — 39.1 19.5 58.6 Short-term investments $ 144.8 Noncurrent investments: U.S. government and agency securities $ 146.4 $ 163.2 $ 146.4 $ — $ — $ 146.4 Corporate debt securities 213.9 235.8 — 213.9 — 213.9 Mortgage-backed securities 149.2 161.5 — 149.2 — 149.2 Asset-backed securities 50.6 52.5 — 50.6 — 50.6 Other securities 398.6 34.5 — 311.0 87.6 398.6 Marketable equity securities 683.6 484.7 683.6 — — 683.6 Equity investments without readily determinable fair values (3) 478.4 Equity method investments (3) 781.1 Noncurrent investments $ 2,901.8 (1) For available-for-sale debt securities, amounts disclosed represent the securities' amortized cost. (2) We consider all highly liquid investments with a maturity of three months or less from the date of purchase to be cash equivalents. The cost of these investments approximates fair value. (3) Fair value disclosures are not applicable for equity method investments and investments accounted for under the measurement alternative for equity investments. We determine our Level 1 and Level 2 fair value measurements based on a market approach using quoted market values, significant other observable inputs for identical or comparable assets or liabilities, or discounted cash flow analyses. Level 3 fair value measurements for other investment securities are determined using unobservable inputs, including the investments' cost adjusted for impairments and price changes from orderly transactions. Fair values are not readily available for certain equity investments measured under the measurement alternative. Debt In February 2023, we issued $750.0 million of 5.000 percent fixed-rate notes due in 2026, which are callable at par after one year, $1.00 billion of 4.700 percent fixed-rate notes due in 2033, $1.25 billion of 4.875 percent fixed-rate notes due in 2053, and $1.00 billion of 4.950 percent fixed-rate notes due in 2063, all with interest to be paid semi-annually. We used the net cash proceeds from the offering of $3.96 billion for general business purposes, including the repayment of outstanding commercial paper. In September 2023, we renewed our $4.00 billion 364-day credit facility, which will expire in September 2024 and is available to support our commercial paper program. We have not drawn against the $4.00 billion 364-day facility as of September 30, 2023. Fair Value of Debt The following table summarizes certain fair value information at September 30, 2023 and December 31, 2022 for our short-term and long-term debt: Fair Value Measurements Using Carrying Quoted Prices in Active Markets for Identical Assets Significant Significant Fair Short-term commercial paper borrowings September 30, 2023 $ (1,594.9) $ — $ (1,592.5) $ — $ (1,592.5) December 31, 2022 (1,498.0) — (1,492.0) — (1,492.0) Long-term debt, including current portion September 30, 2023 $ (18,573.4) $ — $ (15,412.6) $ — $ (15,412.6) December 31, 2022 (14,740.6) — (12,329.3) — (12,329.3) Risk Management and Related Financial Instruments Financial instruments that potentially subject us to credit risk consist principally of trade receivables and interest-bearing investments. Wholesale distributors of life science products account for a substantial portion of our trade receivables; collateral is generally not required. We seek to mitigate the risk associated with this concentration through our ongoing credit-review procedures and insurance. The majority of our cash is held by a few major financial institutions that have been identified as Global Systemically Important Banks (G-SIBs) by the Financial Stability Board. G-SIBs are subject to rigorous regulatory testing and oversight and must meet certain capital requirements. We monitor our exposures with these institutions and do not expect any of these institutions to fail to meet their obligations. In accordance with documented corporate risk-management policies, we monitor the amount of credit exposure to any one financial institution or corporate issuer based on credit rating of our counterparty. We are exposed to credit-related losses in the event of nonperformance by counterparties to risk-management instruments but do not expect significant counterparties to fail to meet their obligations given their investment grade credit ratings. We have entered into accounts receivable factoring agreements with financial institutions to sell certain of our non-U.S. accounts receivable. These transactions are accounted for as sales and result in a reduction in accounts receivable because the agreements transfer effective control over, and risk related to, the receivables to the buyers. Our factoring agreements do not allow for recourse in the event of uncollectibility, and we do not retain any interest in the underlying accounts receivable once sold. We derecognized $403.8 million and $422.1 million of accounts receivable as of September 30, 2023 and December 31, 2022, respectively, under these factoring arrangements. The costs of factoring such accounts receivable were not material for the three and nine months ended September 30, 2023 and 2022. Our derivative activities are initiated within the guidelines of documented corporate risk-management policies and are intended to offset losses and gains on the assets, liabilities, and transactions being hedged. Management reviews the correlation and effectiveness of our derivatives on a quarterly basis. For derivative instruments that are designated and qualify as fair value hedges, the derivative instrument is marked to market, with gains and losses recognized currently in income to offset the respective losses and gains recognized on the underlying exposure. For derivative instruments that are designated and qualify as cash flow hedges, gains and losses are reported as a component of accumulated other comprehensive income (loss) (see Note 10) and reclassified into earnings in the same period the hedged transaction affects earnings. For derivative and non-derivative instruments that are designated and qualify as net investment hedges, the foreign currency translation gains or losses due to spot rate fluctuations are reported as a component of accumulated other comprehensive income (loss) (see Note 10). Derivative contracts that are not designated as hedging instruments are recorded at fair value with the gain or loss recognized in earnings during the period of change. We may enter into foreign currency forward or option contracts to reduce the effect of fluctuating currency exchange rates (principally the euro, British pound, Chinese yuan, Japanese yen, and Swiss franc). Foreign currency derivatives used for hedging are put in place using the same or like currencies and duration as the underlying exposures. Forward and option contracts are principally used to manage exposures arising from subsidiary trade and loan payables and receivables denominated in foreign currencies. These contracts are recorded at fair value with the gain or loss recognized in other–net, (income) expense. Forward contracts generally have maturities not exceeding 12 months. At September 30, 2023, we had outstanding foreign currency forward commitments as follows, all of which have settlement dates within 180 days: September 30, 2023 Purchase Sell Currency Amount Currency Amount Euro 5,774.2 U.S. dollars 6,170.9 U.S. dollars 3,420.4 Euro 3,224.2 U.S. dollars 240.0 Chinese yuan 1,736.5 British pounds 185.7 U.S. dollars 229.7 U.S. dollars 200.2 Japanese yen 29,626.8 Foreign currency exchange risk is also managed through the use of foreign currency debt, cross-currency interest rate swaps, and foreign currency forward contracts. Our foreign currency-denominated notes had carrying amounts of $6.74 billion and $6.83 billion as of September 30, 2023 and December 31, 2022, respectively, of which $5.38 billion and $5.45 billion have been designated as, and are effective as, economic hedges of net investments in certain of our foreign operations as of September 30, 2023 and December 31, 2022, respectively. At September 30, 2023, we had outstanding cross-currency swaps with notional amounts of $1.01 billion swapping U.S. dollars to euro and $1.00 billion swapping Swiss francs to U.S. dollars which have settlement dates ranging through 2028. Our cross-currency interest rate swaps, for which a majority convert a portion of our U.S. dollar-denominated fixed-rate debt to foreign-denominated fixed-rate debt, have also been designated as, and are effective as, economic hedges of net investments. At September 30, 2023, we had outstanding foreign currency forward contracts to sell 5.23 billion euro and to sell 1.80 billion Chinese yuan with settlement dates ranging through 2024, which have been designated as, and are effective as, economic hedges of net investments. In the normal course of business, our operations are exposed to fluctuations in interest rates which can vary the costs of financing, investing, and operating. We seek to address a portion of these risks through a controlled program of risk management that includes the use of derivative financial instruments. The objective of controlling these risks is to limit the impact of fluctuations in interest rates on earnings. Our primary interest-rate risk exposure results from changes in short-term U.S. dollar interest rates. In an effort to manage interest-rate exposures, we strive to achieve an acceptable balance between fixed- and floating-rate debt and investment positions and may enter into interest rate swaps or collars to help maintain that balance. Interest rate swaps or collars that convert our fixed-rate debt to a floating rate are designated as fair value hedges of the underlying instruments. Interest rate swaps or collars that convert floating-rate debt to a fixed rate are designated as cash flow hedges. Interest expense on the debt is adjusted to include the payments made or received under the swap agreements. Cash proceeds from or payments to counterparties resulting from the termination of interest rate swaps are classified as operating activities in our consolidated condensed statements of cash flows. At September 30, 2023, all of our total long-term debt is at a fixed rate. We have converted approximately 12 percent of our long-term fixed-rate notes to floating rates through the use of interest rate swaps. We also may enter into forward-starting interest rate swaps, which we designate as cash flow hedges, as part of any anticipated future debt issuances in order to reduce the risk of cash flow volatility from future changes in interest rates. The change in fair value of these instruments is recorded as part of other comprehensive income (loss) (see Note 10) and, upon completion of a debt issuance and termination of the swap, is amortized to interest expense over the life of the underlying debt. As of September 30, 2023, the total notional amounts of forward-starting interest rate contracts in designated cash flow hedging instruments were $1.00 billion, which have settlement dates ranging through 2025. The Effect of Risk-Management Instruments on the Consolidated Condensed Statements of Operations The following effects of risk-management instruments were recognized in other–net, (income) expense: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Fair value hedges: Effect from hedged fixed-rate debt $ (29.9) $ (62.9) $ (29.0) $ (215.7) Effect from interest rate contracts 29.9 62.9 29.0 215.7 Cash flow hedges: Effective portion of losses on interest rate contracts reclassified from accumulated other comprehensive loss 3.2 4.1 10.3 12.3 Cross-currency interest rate swaps 24.7 33.1 (5.3) 75.0 Net losses on foreign currency exchange contracts not designated as hedging instruments 201.0 129.6 177.8 280.7 Total $ 228.9 $ 166.8 $ 182.8 $ 368.0 During the three and nine months ended September 30, 2023 and 2022, the amortization of losses related to the portion of our risk management hedging instruments, fair value hedges, and cash flow hedges that was excluded from the assessment of effectiveness was not material. The Effect of Risk-Management Instruments on Other Comprehensive Income (Loss) The effective portion of risk-management instruments that was recognized in other comprehensive income (loss) is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Net investment hedges: Foreign currency-denominated notes $ 183.5 $ 435.1 $ 62.3 $ 822.8 Cross-currency interest rate swaps 28.6 92.1 9.0 171.4 Foreign currency forward contracts 217.7 107.8 199.3 121.4 Cash flow hedges: Forward-starting interest rate swaps 84.3 57.5 141.4 337.7 Cross-currency interest rate swaps 16.4 19.9 30.5 38.4 During the next 12 months, we expect to reclassify $13.1 million of pretax net losses on cash flow hedges from accumulated other comprehensive loss to other–net, (income) expense. During the three and nine months ended September 30, 2023 and 2022, the amounts excluded from the assessment of hedge effectiveness recognized in other comprehensive income (loss) were not material. Fair Value of Risk-Management Instruments The following table summarizes certain fair value information at September 30, 2023 and December 31, 2022 for risk management assets and liabilities measured at fair value on a recurring basis: Fair Value Measurements Using Carrying Quoted Prices in Active Markets for Identical Assets Significant Significant Fair September 30, 2023 Risk-management instruments: Interest rate contracts designated as fair value hedges: Other current liabilities $ (5.6) $ — $ (5.6) $ — $ (5.6) Other noncurrent liabilities (157.7) — (157.7) — (157.7) Interest rate contracts designated as cash flow hedges: Other noncurrent assets 346.2 — 346.2 — 346.2 Cross-currency interest rate contracts designated as net investment hedges: Other receivables 71.3 — 71.3 — 71.3 Cross-currency interest rate contracts designated as cash flow hedges: Other receivables 58.3 — 58.3 — 58.3 Other noncurrent assets 30.7 — 30.7 — 30.7 Foreign exchange contracts designated as net investment hedges: Other receivables 106.0 — 106.0 — 106.0 Foreign exchange contracts not designated as hedging instruments: Other receivables 32.9 — 32.9 — 32.9 Other current liabilities (100.5) — (100.5) — (100.5) Contingent consideration liabilities: Other current liabilities (39.0) — — (39.0) (39.0) Other noncurrent liabilities (63.9) — — (63.9) (63.9) Fair Value Measurements Using Carrying Quoted Prices in Active Markets for Identical Assets Significant Significant Fair December 31, 2022 Risk-management instruments: Interest rate contracts designated as fair value hedges: Other noncurrent liabilities $ (134.3) $ — $ (134.3) $ — $ (134.3) Interest rate contracts designated as cash flow hedges: Other receivables 162.9 — 162.9 — 162.9 Other noncurrent assets 246.0 — 246.0 — 246.0 Cross-currency interest rate contracts designated as net investment hedges: Other receivables 67.6 — 67.6 — 67.6 Cross-currency interest rate contracts designated as cash flow hedges: Other noncurrent assets 53.1 — 53.1 — 53.1 Foreign exchange contracts designated as hedging instruments: Other current liabilities (38.3) — (38.3) — (38.3) Foreign exchange contracts not designated as hedging instruments: Other receivables 26.6 — 26.6 — 26.6 Other current liabilities (21.5) — (21.5) — (21.5) Contingent consideration liabilities: Other current liabilities (39.5) — — (39.5) (39.5) Other noncurrent liabilities (70.6) — — (70.6) (70.6) Risk-management instruments above are disclosed on a gross basis. There are various rights of setoff associated with certain of the risk-management instruments above that are subject to enforceable master netting arrangements or similar agreements. Although various rights of setoff and master netting arrangements or similar agreements may exist with the individual counterparties to the risk-management instruments above, individually, these financial rights are not material. Contingent consideration liabilities relate to our liabilities arising in connection with the CVRs issued as a result of acquisitions of businesses. The fair values of the CVR liabilities were estimated using a discounted cash flow analysis and Level 3 inputs, including projections representative of a market participant's view of the expected cash payments associated with the agreed upon regulatory milestones based on probabilities of technical success, timing of the potential milestone events for the compounds, and estimated discount rates. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rates were 113.4 percent and 24.6 percent for the three and nine months ended September 30, 2023, respectively, primarily driven by the non-deductible acquired IPR&D charges in the third quarter of 2023. The effective tax rates were 7.3 percent and 8.6 percent for the three and nine months ended September 30, 2022, respectively, reflecting the favorable tax impacts of net investment losses on equity securities and an intangible asset impairment charge. At September 30, 2023 and December 31, 2022, prepaid expenses and other current assets included prepaid taxes of $4.08 billion and $2.37 billion, respectively. The U.S. examination of tax years 2016-2018 began in 2019 and remains ongoing. While it is reasonably possible that the Internal Revenue Service (IRS) examination of these tax years could conclude within the next 12 months, final resolution of certain matters is dependent upon several factors, including the potential for formal administrative proceedings. As a result, an estimate of the range of reasonably possible changes in unrecognized tax benefits cannot be made. The IRS commenced its examination of tax years 2019-2021 during the third quarter of 2023. |
Retirement Benefits
Retirement Benefits | 9 Months Ended |
Sep. 30, 2023 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Retirement Benefits | Retirement Benefits Net pension and retiree health (benefit) cost included the following components: Defined Benefit Pension Plans Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Components of net periodic cost: Service cost $ 72.5 $ 87.1 $ 217.8 $ 264.4 Interest cost 162.3 98.9 486.0 299.0 Expected return on plan assets (264.0) (235.1) (791.5) (711.6) Amortization of prior service cost 0.6 0.6 1.8 1.9 Recognized actuarial loss 30.6 85.3 91.5 256.8 Net periodic cost $ 2.0 $ 36.8 $ 5.6 $ 110.5 Retiree Health Benefit Plans Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Components of net periodic benefit: Service cost $ 7.9 $ 11.7 $ 23.8 $ 35.0 Interest cost 15.3 9.4 46.0 28.4 Expected return on plan assets (45.5) (38.0) (136.6) (114.1) Amortization of prior service benefit (13.3) (13.7) (39.7) (41.1) Recognized actuarial (gain) loss (1.5) 0.2 (4.4) 0.7 Net periodic benefit $ (37.1) $ (30.4) $ (110.9) $ (91.1) |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies We are involved in various lawsuits, claims, government investigations and other legal proceedings that arise in the ordinary course of business. These claims or proceedings can involve various types of parties, including governments, competitors, customers, suppliers, service providers, licensees, employees, or shareholders, among others. These matters may involve patent infringement, antitrust, securities, pricing, sales and marketing practices, environmental, commercial, contractual rights, licensing obligations, health and safety matters, consumer fraud, employment matters, product liability and insurance coverage, among others. The resolution of these matters often develops over a long period of time and expectations can change as a result of new findings, rulings, appeals or settlement arrangements. Legal proceedings that are significant or that we believe could become significant or material are described below. We are defending against the legal proceedings in which we are named as defendants vigorously. It is not possible to determine the final outcome of these matters, and we cannot reasonably estimate the maximum potential exposure or the range of possible loss in excess of amounts accrued for any of these matters; however, we believe that the resolution of all such matters will not have a material adverse effect on our consolidated financial position or liquidity, but could possibly be material to our consolidated results of operations in any one accounting period. Litigation accruals, environmental liabilities, and the related estimated insurance recoverables are reflected on a gross basis as liabilities and assets, respectively, on our consolidated balance sheets. With respect to the product liability claims currently asserted against us, we have accrued for our estimated exposures to the extent they are both probable and reasonably estimable based on the information available to us. We accrue for certain product liability claims incurred but not filed to the extent we can formulate a reasonable estimate of their costs. We estimate these expenses based primarily on historical claims experience and data regarding product usage. Legal defense costs expected to be incurred in connection with significant product liability loss contingencies are accrued when both probable and reasonably estimable. Because of the nature of pharmaceutical products, it is possible that we could become subject to large numbers of additional product liability and related claims in the future. Due to a very restrictive market for litigation liability insurance, we are self-insured for litigation liability losses for all our currently and previously marketed products. Patent Litigation Alimta European Patent Litigation In Europe, Alimta (pemetrexed) was protected by a patent through June 2021. A number of legal proceedings that were initiated prior to patent expiration are ongoing . Emgality Patent Litigation We are a named defendant in litigation filed by Teva Pharmaceuticals International GMBH and Teva Pharmaceuticals USA , Inc. (collectively, Teva) in the U.S. District Court for the District of Massachusetts seeking a ruling that various claims in three different Teva patents would be infringed by our launch and continued sales of Emgality for the prevention of migraine in adults. Following a trial, in November 2022, a jury returned a verdict in favor of Teva. In September 2023, the court granted our motion to overrule the jury verdict and found all asserted claims of the three patents invalid. Teva has appealed the decision. This matter is ongoing. In June 2021, we were named as a defendant in a second litigation filed by Teva in the U.S. District Court for the District of Massachusetts seeking a ruling that two of Teva's patents, which are directed toward use of the active ingredient in Emgality to treat migraine, would be infringed by our continued sales of Emgality. We challenged these two patents by filing requests for Inter Partes Review with the Patent Trial and Appeal Board (PTAB) and in October 2022, the PTAB granted our requests. In September 2023, the PTAB issued decisions finding all claims of both patents invalid. Teva may appeal the decision. The corresponding district court litigation is stayed while this PTAB proceeding is ongoing. Jardiance Patent Litigation In November 2018, Boehringer Ingelheim, our partner in marketing and development of Jardiance, initiated U.S. patent litigation in the U.S. District Court for the District of Delaware alleging infringement arising from submissions of Abbreviated New Drug Applications (ANDA) by a number of generic companies seeking approval to market generic versions of Jardiance, Glyxambi, and Synjardy in accordance with the procedures set out in the Drug Price Competition and Patent Term Restoration Act of 1984 (the Hatch-Waxman Act). Particularly with respect to Jardiance, the generic companies' ANDAs seek approval to market generic versions of Jardiance prior to the expiration of the relevant patents, and allege that certain patents are invalid or would not be infringed. We are not a party to this litigation. This matter is ongoing. Environmental Proceedings Under the Comprehensive Environmental Response, Compensation, and Liability Act, commonly known as "Superfund," we have been designated as one of several potentially responsible parties with respect to the cleanup of fewer than 10 sites. Under Superfund, each responsible party may be jointly and severally liable for the entire amount of the cleanup. Other Matters Actos ® Litigation We are named along with Takeda Chemical Industries, Ltd. and Takeda affiliates (collectively, Takeda) in a third party payor class action in the U.S. District Court for the Central District of California ( Painters et al. v. Takeda et al. ). Plaintiffs claim that they and similarly situated class members are entitled to recover money paid for or to reimburse Actos prescriptions because of alleged concealment of bladder cancer risk. Our agreement with Takeda calls for Takeda to defend and indemnify us against our losses and expenses with respect to U.S. litigation arising out of the manufacture, use, or sale of Actos and other related expenses in accordance with the terms of the agreement. In August 2023, the Ninth Circuit granted our and Takeda's petition for permission to appeal the class certification order. This matter is ongoing. Actos is a registered trademark of Takeda Pharmaceutical Company Limited. 340B Litigation and Investigations We are the plaintiff in a lawsuit filed in January 2021 in the U.S. District Court for the Southern District of Indiana against the U.S. Department of Health and Human Services (HHS), the Secretary of HHS, the Health Resources and Services Administration (HRSA), and the Administrator of HRSA. The lawsuit challenges HHS's December 30, 2020 advisory opinion stating that drug manufacturers are required to deliver discounts under the 340B program to all contract pharmacies and HHS's Administrative Dispute Resolution regulations. We seek a declaratory judgment that the defendants violated the Administrative Procedure Act and the U.S. Constitution, a preliminary injunction enjoining implementation of the administrative dispute resolution process created by defendants and, with it, their application of the advisory opinion, and other related relief. In March 2021, the court entered an order preliminarily enjoining the government's enforcement of the administrative dispute resolution process against us. In May 2021, HRSA sent us an enforcement letter notifying us that it determined that our policy was contrary to the 340B statute. In response, in May 2021, we amended our complaint to bring claims related to HRSA's determination and filed a motion for preliminary injunction and temporary restraining order requesting that the U.S. District Court for the Southern District of Indiana enjoin defendants from taking any action against us relating to the 340B drug pricing program until after the court issues a final judgment on the aforementioned litigation. In May 2021, the court denied our motion for a temporary restraining order but deferred resolution of our motion for preliminary injunction. In June 2021, the defendants withdrew the HHS December 30, 2020 advisory opinion. In July 2021, the court held oral argument on the parties' cross motions for summary judgment, the defendants' motion to dismiss, and our motion for preliminary injunction related to HRSA's May 2021 enforcement letter. In October 2021, the court denied the defendants' motion to dismiss, and granted in part and denied in part the parties' cross motions for summary judgment. Both parties filed notices of appeal related to the court's summary judgment order. In October 2022, the U.S. Court of Appeals for the Seventh Circuit held oral argument. This matter is ongoing. We, along with other pharmaceutical manufacturers, have been named as a defendant in petitions filed in 2021 and 2023 and currently pending before the HHS Administrative Dispute Resolution Panel. Petitioners seek declaratory, injunctive, and/or monetary relief related to the 340B program. As described above, the U.S. District Court for the Southern District of Indiana has entered a preliminary injunction enjoining the government's enforcement of this administrative dispute resolution process against us. In July 2021, we, along with Sanofi-Aventis U.S., LLC (Sanofi), Novo Nordisk Inc. (Novo Nordisk), and AstraZeneca Pharmaceuticals LP (AstraZeneca), were named as a defendant in a purported class action lawsuit filed in the U.S. District Court for the Western District of New York by Mosaic Health, Inc. alleging antitrust and unjust enrichment claims related to the defendants' 340B distribution programs. We, with Sanofi, Novo Nordisk, and AstraZeneca, filed a motion to dismiss the lawsuit, which was granted in September 2022. In October 2022, the plaintiffs filed a motion for leave to amend their complaint. This matter is ongoing. We received a civil investigative subpoena in February 2021 from the Office of the Attorney General for the State of Vermont relating to the sale of pharmaceutical products to Vermont covered entities under the 340B program. We are cooperating with this subpoena. Branchburg Manufacturing Facility In May 2021, we received a subpoena from the U.S. Department of Justice requesting the production of certain documents relating to our manufacturing site in Branchburg, New Jersey. We are cooperating with the subpoena. Brazil Litigation – Cosmopolis Facility Labor Attorney Litigation First initiated in 2008, our subsidiary in Brazil, Eli Lilly do Brasil Limitada (Lilly Brasil), is named in a Public Civil Action brought by the Labor Public Attorney (LPA) for the 15th Region in the Labor Court of Paulinia, State of Sao Paulo, Brazil, (the Labor Court) alleging possible harm to employees and former employees caused by alleged exposure to soil and groundwater contaminants at a former Lilly Brasil manufacturing facility in Cosmopolis, Brazil, operated by the company between 1977 and 2003. In May 2014, the Labor Court judge ruled against Lilly Brasil, ordering it to undertake several remedial and compensatory actions including health coverage for a class of individuals and certain of their children. In July 2018, the appeals court (TRT) generally affirmed our appeal of the Labor Court's ruling, which included a liquidated award of 300 million Brazilian reais, which, when adjusted for inflation and the addition of pre and post judgment interest using the current Central Bank of Brazil's special system of clearance and custody rate, is approximately 1.24 billion Brazilian reais (approximately $247 million as of September 30, 2023). In August 2019, Lilly Brasil filed an appeal to the superior labor court (TST) and in June 2021, the TRT published its decision on the admissibility of Lilly Brasil's appeal, allowing the majority of the elements, which were allowed to proceed in June 2021; elements not proceeding are subject to an interlocutory appeal to the TST that was filed in June 2021. In September 2019, the TRT stayed a number of elements of its trial court decision pending the determination of Lilly Brasil's appeal to the TST. A mediation hearing is scheduled for November 2023. In June 2019 and September 2020, the LPA filed applications in the Labor Court for enforcement of certain remedies granted by the TRT in its July 2018 decision, requested restrictions on Lilly Brasil’s assets in Brazil, and required Lilly Brasil and Antibióticos do Brasil Ltda. (ABL) to submit a list of potential beneficiaries of the Public Civil Action. In July 2019, the Labor Court issued a ruling requiring a freeze of Lilly Brasil’s immovable property or, alternatively, a security deposit or lien of 500 million Brazilian reais, which ruling in June 2021 was limited in scope and the security was reduced to 100 million Brazilian reais (approximately $20 million as of September 30, 2023). ABL and LPA appealed the June 2021 Labor Court ruling to the TST, which appeal is under review. The Labor Court is currently assessing the status of Lilly Brasil’s and ABL’s compliance with such portion of the July 2018 TRT decision and an inspection in the industrial plant occurred in October 2023. These matters are ongoing. Individual Former Employee Litigation Lilly Brasil is also named in various pending lawsuits filed in the Labor Court by individual former employees making related claims. These individual lawsuits are at various stages in the litigation process. Puerto Rico Tax Matter In May 2013, the Municipality of Carolina in Puerto Rico (Municipality) filed a lawsuit against us alleging noncompliance with respect to a contract with the Municipality and seeking a declaratory judgment. In December 2020, the Puerto Rico Appellate Court (AP) reversed the summary judgment previously granted by the Court of First Instance (CFI) in our favor, dismissing the Municipality's complaint in its entirety. The AP remanded the case to the CFI for trial on the merits. The trial began in May 2022; however, the Municipality filed a new motion requesting the CFI to execute an alleged judgment. The request was denied by the CFI in our favor and the Municipality filed for revision at the AP, which we opposed, staying the case. The AP denied the Municipality's motion for revision. This matter is ongoing and trial is expected to resume in mid-2024. Average Manufacturer Price Litigation In November 2014, we, along with another pharmaceutical manufacturer, were named as co-defendants in United States et al. ex rel. Streck v. Takeda Pharm. Am., Inc., et al. , which was filed in November 2014 and unsealed in the U.S. District Court for the Northern District of Illinois. The complaint alleges that the defendants should have treated certain credits from distributors as retroactive price increases and included such increases in calculating average manufacturer prices. Following a trial in August 2022, the jury returned a verdict in favor of the plaintiff. Lilly filed its notice of appeal to the Seventh Circuit in June 2023. This matter is ongoing. Health Choice Alliance We are named as a defendant in two lawsuits filed in Texas and New Jersey state courts in October 2019 seeking damages under the Texas Medicaid Fraud Prevention Act and New Jersey Medicaid False Claims Act, respectively, for certain patient support programs related to our products Humalog, Humulin, and Forteo. The Texas state court action has been stayed. The New Jersey state court action was dismissed with prejudice pending an ongoing appeal before the Appellate Division of the New Jersey Superior Court. Oral argument before the Appellate Division in the New Jersey state court action is scheduled to take place in November 2023. This matter is ongoing. Pricing Litigation We, along with Sanofi, Novo Nordisk, and, in some matters, certain pharmacy benefit managers, have been named in numerous lawsuits, including putative class actions, by states and state attorneys general, counties, municipalities, third-party payers, consumers, and other parties related to insulin pricing and rebates paid by manufacturers to pharmacy benefit managers. These lawsuits assert various theories, including consumer protection and deceptive trade practice, fraud, false advertising, unjust enrichment, civil conspiracy, federal and state RICO statutes, antitrust, and unfair competition claims. These lawsuits have been brought in various state and federal courts from 2017 through 2023 and are at various stages in the litigation process. Starting in August 2023 after a ruling by the Judicial Panel for Multi-District Litigation, several of these cases were transferred to or filed in the District of New Jersey for coordinated or consolidated pre-trial proceedings. Investigations, Subpoenas, and Inquiries In connection with the pricing and sale of our insulin and other products, we have been subject to various investigations and received subpoenas, civil investigative demand requests, information requests, interrogatories, and other inquiries from various governmental entities. These include subpoenas from the New York and Vermont Attorney General Offices, civil investigative demands from the Washington, New Mexico, Colorado, Louisiana, Texas and Ohio Attorney General Offices, the U.S. Department of Justice, and the U.S. Federal Trade Commission, as well as information requests from the Mississippi, Washington D.C., California, Florida, Hawaii, and Nevada Attorney General Offices. In May 2023, Lilly entered into a non-monetary settlement agreement with the New York Attorney General's office that resolved all matters related to New York's insulin pricing subpoena. In January 2022, the Michigan Attorney General filed a petition in Michigan state court seeking authorization to investigate Lilly for potential violations of the Michigan Consumer Protection Act (MCPA), and a complaint seeking a declaratory judgment that the Attorney General has authority to investigate Lilly's sale of insulin under the MCPA. The court authorized the proposed investigation and the issuance of civil investigative subpoenas. In April 2022, the parties entered into a stipulation providing that the State of Michigan will not issue any civil investigative subpoena to us under the MCPA until the declaratory judgment action is resolved. In July 2022, the court dismissed the case in its entirety. In June 2023, the Michigan Court of Appeals affirmed the judgment in our favor. In August 2023, the Michigan Attorney General filed an application for leave to appeal to the Michigan Supreme Court, which we opposed in September 2023. We received a request in January 2019 from the House of Representatives' Committee on Oversight and Reform seeking commercial information and business records related to the pricing of insulin products, among other issues. We also received similar requests from the Senate Finance Committee and the Senate Committee on Health, Education, Labor, and Pensions, and separate requests from the House Committee on Energy and Commerce majority and minority members. In January 2021, the Senate Finance Committee released a report summarizing the findings of its investigation. In December 2021, the House of Representatives' Committee on Oversight and Reform majority and minority staffs released separate reports with findings from their investigations into drug pricing, including of insulin products. We are cooperating with all of the aforementioned investigations, subpoenas, and inquiries. Research Corporation Technologies, Inc. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) The following tables summarize the activity related to each component of other comprehensive income (loss) during the three months ended September 30, 2023 and 2022: (Amounts presented net of taxes) Foreign Currency Translation Gains (Losses) Net Unrealized Gains (Losses) on Available-For-Sale Securities Defined Benefit Pension and Retiree Health Benefit Plans Net Unrealized Gains (Losses) on Cash Flow Hedges Accumulated Other Comprehensive Loss Balance at July 1, 2023 $ (1,885.3) $ (33.5) $ (2,058.8) $ 188.9 $ (3,788.7) Other comprehensive income (loss) before reclassifications (88.7) (13.5) 10.5 79.6 (12.1) Net amount reclassified from accumulated other comprehensive loss — 1.4 13.0 1.5 15.9 Net other comprehensive income (loss) (88.7) (12.1) 23.5 81.1 3.8 Balance at September 30, 2023 $ (1,974.0) $ (45.6) $ (2,035.3) $ 270.0 $ (3,784.9) (Amounts presented net of taxes) Foreign Currency Translation Gains (Losses) Net Unrealized Gains (Losses) on Available-For-Sale Securities Defined Benefit Pension and Retiree Health Benefit Plans Net Unrealized Gains (Losses) on Cash Flow Hedges Accumulated Other Comprehensive Loss Balance at July 1, 2022 $ (1,844.2) $ (27.9) $ (2,443.2) $ 27.6 $ (4,287.7) Other comprehensive income (loss) before reclassifications (165.1) (24.9) 47.8 63.0 (79.2) Net amount reclassified from accumulated other comprehensive loss — 13.5 57.2 0.4 71.1 Net other comprehensive income (loss) (165.1) (11.4) 105.0 63.4 (8.1) Balance at September 30, 2022 $ (2,009.3) $ (39.3) $ (2,338.2) $ 91.0 $ (4,295.8) The following tables summarize the activity related to each component of other comprehensive income (loss) during the nine months ended September 30, 2023 and 2022: (Amounts presented net of taxes) Foreign Currency Translation Gains (Losses) Net Unrealized Gains (Losses) on Available-For-Sale Securities Defined Benefit Pension and Retiree Health Benefit Plans Net Unrealized Gains (Losses) on Cash Flow Hedges Accumulated Other Comprehensive Loss Balance at January 1, 2023 $ (1,874.2) $ (37.1) $ (2,062.3) $ 129.0 $ (3,844.6) Other comprehensive income (loss) before reclassifications (74.6) (11.3) (11.9) 135.8 38.0 Net amount reclassified from accumulated other comprehensive loss (25.2) 2.8 38.9 5.2 21.7 Net other comprehensive income (loss) (99.8) (8.5) 27.0 141.0 59.7 Balance at September 30, 2023 $ (1,974.0) $ (45.6) $ (2,035.3) $ 270.0 $ (3,784.9) (Amounts presented net of taxes) Foreign Currency Translation Gains (Losses) Net Unrealized Gains (Losses) on Available-For-Sale Securities Defined Benefit Pension and Retiree Health Benefit Plans Net Unrealized Gains (Losses) on Cash Flow Hedges Accumulated Other Comprehensive Loss Balance at January 1, 2022 $ (1,550.2) $ 3.7 $ (2,583.6) $ (213.0) $ (4,343.1) Other comprehensive income (loss) before reclassifications (459.7) (55.5) 72.9 297.2 (145.1) Net amount reclassified from accumulated other comprehensive loss 0.6 12.5 172.5 6.8 192.4 Net other comprehensive income (loss) (459.1) (43.0) 245.4 304.0 47.3 Balance at September 30, 2022 $ (2,009.3) $ (39.3) $ (2,338.2) $ 91.0 $ (4,295.8) The tax effects on the net activity related to each component of other comprehensive income (loss) were as follows: Three Months Ended September 30, Nine Months Ended September 30, Tax benefit (expense) 2023 2022 2023 2022 Foreign currency translation gains/losses $ (90.3) $ (133.3) $ (50.2) $ (234.2) Net unrealized gains/losses on available-for-sale securities 3.5 3.4 2.5 13.1 Defined benefit pension and retiree health benefit plans (6.9) (22.4) (13.9) (73.2) Net unrealized gains/losses on cash flow hedges (21.6) (16.9) (37.5) (80.8) Benefit (expense) for income taxes allocated to other comprehensive income (loss) items $ (115.3) $ (169.2) $ (99.1) $ (375.1) Except for the tax effects of foreign currency translation gains and losses related to our foreign currency-denominated notes, cross-currency interest rate swaps, and other foreign currency exchange contracts designated as net investment hedges (see Note 6), income taxes were not provided for foreign currency translation. Generally, the assets and liabilities of foreign operations are translated into U.S. dollars using the current exchange rate. For those operations, changes in exchange rates generally do not affect cash flows; therefore, resulting translation adjustments are made in shareholders' equity rather than in the consolidated condensed statements of operations. Reclassifications out of accumulated other comprehensive loss were as follows: Details about Accumulated Other Comprehensive Loss Components Three Months Ended September 30, Nine Months Ended September 30, Affected Line Item in the Consolidated Condensed Statements of Operations 2023 2022 2023 2022 Amortization of retirement benefit items: Prior service benefits, net $ (12.7) $ (13.1) $ (37.9) $ (39.2) Other–net, (income) expense Actuarial losses, net 29.1 85.5 87.1 257.5 Other–net, (income) expense Total before tax 16.4 72.4 49.2 218.3 Tax benefit (3.4) (15.2) (10.3) (45.8) Income taxes Net of tax 13.0 57.2 38.9 172.5 Other, net of tax 2.9 13.9 (17.2) 19.9 Other–net, (income) expense Total reclassifications, net of tax $ 15.9 $ 71.1 $ 21.7 $ 192.4 |
Other_Net, (Income) Expense
Other–Net, (Income) Expense | 9 Months Ended |
Sep. 30, 2023 | |
Nonoperating Income (Expense) [Abstract] | |
Other–Net, (Income) Expense | Other–Net, (Income) Expense Other–net, (income) expense consisted of the following: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Interest expense $ 124.6 $ 81.5 $ 347.7 $ 247.6 Interest income (48.9) (20.1) (129.1) (37.3) Net investment losses on equity securities (Note 6) 62.9 123.3 141.5 667.6 Retirement benefit plans (115.5) (92.4) (346.9) (280.0) Other (income) expense 0.1 18.7 11.1 (17.0) Other–net, (income) expense $ 23.2 $ 111.0 $ 24.3 $ 580.9 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net income (loss) | $ (57.4) | $ 1,451.7 | $ 3,050.7 | $ 4,307.1 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Research and Development Expenses | Research and development costs are expensed as incurred. Research and development costs consist of expenses incurred in performing research and development activities, including but not limited to, compensation and benefits, facilities and overhead expense, clinical trial expense, and fees paid to contract research organizations. |
Acquired In-Process Research and Development (IPR&D) | Acquired IPR&D includes the initial costs and development milestones incurred related to externally developed IPR&D projects, acquired directly in a transaction other than a business combination, that do not have an alternative future use. Development milestones are milestone payment obligations that are incurred prior to regulatory approval of the compound and are expensed when the event triggering an obligation to pay the milestone occurs. |
Reclassifications | ReclassificationsCertain reclassifications have been made to prior periods in the consolidated condensed financial statements and accompanying notes to conform with the current presentation. Development milestone payments related to externally developed IPR&D projects, acquired directly in a transaction other than a business combination, were previously included in cash flows from operating activities in the consolidated condensed statements of cash flows and are now included in purchases of IPR&D in cash flows from investing activities. |
Business Combinations | Under this method, the assets acquired and liabilities assumed were recorded at their respective fair values as of the acquisition date in our consolidated condensed financial statements. The determination of estimated fair value required management to make significant estimates and assumptions. The excess of the purchase price over the fair value of the acquired net assets, where applicable, has been recorded as goodwill. The results of operations of this acquisition is included in our consolidated condensed financial statements from the date of acquisition.Upon each acquisition, the cost allocated to acquired IPR&D was immediately expensed if the compound has no alternative future use. Milestone payment obligations incurred prior to regulatory approval of the compound are expensed as acquired IPR&D when the event triggering an obligation to pay the milestone occurs. |
Investments in Equity and Debt Securities | Our equity investments are accounted for using three different methods depending on the type of equity investment: • Investments in companies over which we have significant influence but not a controlling interest are accounted for using the equity method, with our share of earnings or losses reported in other-net, (income) expense. • For equity investments that do not have readily determinable fair values, we measure these investments at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer. Any change in recorded value is recorded in other-net, (income) expense. • Our public equity investments are measured and carried at fair value. Any change in fair value is recognized in other-net, (income) expense. |
Description of Derivative Risk Management | For derivative instruments that are designated and qualify as fair value hedges, the derivative instrument is marked to market, with gains and losses recognized currently in income to offset the respective losses and gains recognized on the underlying exposure. For derivative instruments that are designated and qualify as cash flow hedges, gains and losses are reported as a component of accumulated other comprehensive income (loss) (see Note 10) and reclassified into earnings in the same period the hedged transaction affects earnings. For derivative and non-derivative instruments that are designated and qualify as net investment hedges, the foreign currency translation gains or losses due to spot rate fluctuations are reported as a component of accumulated other comprehensive income (loss) (see Note 10). Derivative contracts that are not designated as hedging instruments are recorded at fair value with the gain or loss recognized in earnings during the period of change.We may enter into foreign currency forward or option contracts to reduce the effect of fluctuating currency exchange rates (principally the euro, British pound, Chinese yuan, Japanese yen, and Swiss franc). Foreign currency derivatives used for hedging are put in place using the same or like currencies and duration as the underlying exposures. Forward and option contracts are principally used to manage exposures arising from subsidiary trade and loan payables and receivables denominated in foreign currencies. These contracts are recorded at fair value with the gain or loss recognized in other–net, (income) expense. In the normal course of business, our operations are exposed to fluctuations in interest rates which can vary the costs of financing, investing, and operating. We seek to address a portion of these risks through a controlled program of risk management that includes the use of derivative financial instruments. The objective of controlling these risks is to limit the impact of fluctuations in interest rates on earnings. Our primary interest-rate risk exposure results from changes in short-term U.S. dollar interest rates. In an effort to manage interest-rate exposures, we strive to achieve an acceptable balance between fixed- and floating-rate debt and investment positions and may enter into interest rate swaps or collars to help maintain that balance.Interest rate swaps or collars that convert our fixed-rate debt to a floating rate are designated as fair value hedges of the underlying instruments. Interest rate swaps or collars that convert floating-rate debt to a fixed rate are designated as cash flow hedges. Interest expense on the debt is adjusted to include the payments made or received under the swap agreements. Cash proceeds from or payments to counterparties resulting from the termination of interest rate swaps are classified as operating activities in our consolidated condensed statements of cash flows.We also may enter into forward-starting interest rate swaps, which we designate as cash flow hedges, as part of any anticipated future debt issuances in order to reduce the risk of cash flow volatility from future changes in interest rates. The change in fair value of these instruments is recorded as part of other comprehensive income (loss) (see Note 10) and, upon completion of a debt issuance and termination of the swap, is amortized to interest expense over the life of the underlying debt. |
Contingencies | Litigation accruals, environmental liabilities, and the related estimated insurance recoverables are reflected on a gross basis as liabilities and assets, respectively, on our consolidated balance sheets. With respect to the product liability claims currently asserted against us, we have accrued for our estimated exposures to the extent they are both probable and reasonably estimable based on the information available to us. We accrue for certain product liability claims incurred but not filed to the extent we can formulate a reasonable estimate of their costs. We estimate these expenses based primarily on historical claims experience and data regarding product usage. Legal defense costs expected to be incurred in connection with significant product liability loss contingencies are accrued when both probable and reasonably estimable.Because of the nature of pharmaceutical products, it is possible that we could become subject to large numbers of additional product liability and related claims in the future. Due to a very restrictive market for litigation liability insurance, we are self-insured for litigation liability losses for all our currently and previously marketed products. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregation of revenue | The following table summarizes our revenue recognized in our consolidated condensed statements of operations: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Net product revenue $ 7,306.2 $ 6,119.2 $ 20,524.2 $ 19,123.0 Collaboration and other revenue (1) 2,192.4 822.4 4,246.5 2,116.6 Revenue $ 9,498.6 $ 6,941.6 $ 24,770.7 $ 21,239.6 (1) Collaboration and other revenue associated with prior period transfers of intellectual property was $31.3 million and $86.8 million during the three and nine months ended September 30, 2023, respectively, and $43.3 million and $130.9 million during the three and nine months ended September 30, 2022, respectively. The following table summarizes revenue, including net product revenue and collaboration and other revenue, by product for the three months ended September 30, 2023 and 2022: Three Months Ended September 30, 2023 2022 U.S. Outside U.S. Total U.S. Outside U.S. Total Diabetes: Trulicity ® $ 1,259.0 $ 414.6 $ 1,673.6 $ 1,418.3 $ 432.0 $ 1,850.4 Mounjaro ® 1,277.0 132.4 1,409.3 97.3 90.0 187.3 Jardiance (1) 415.9 284.8 700.8 350.9 222.4 573.3 Humalog ® (2) 194.2 201.2 395.4 248.1 198.8 447.0 Humulin ® 145.5 61.2 206.7 169.5 68.7 238.2 Basaglar ® (3) 111.4 68.2 179.6 124.8 68.1 193.0 Baqsimi 3.8 9.3 13.1 35.2 7.8 43.0 Other diabetes 53.2 88.6 141.9 44.5 86.2 130.4 Total diabetes 3,460.0 1,260.3 4,720.4 2,488.6 1,174.0 3,662.6 Oncology: Verzenio ® 684.6 355.7 1,040.2 414.8 202.9 617.7 Cyramza ® 88.0 136.1 224.1 87.5 144.6 232.1 Erbitux ® 134.0 19.9 153.9 126.3 18.7 144.9 Alimta ® 21.2 32.3 53.5 64.6 54.8 119.4 Other oncology 73.8 201.5 275.4 39.5 139.6 179.2 Total oncology 1,001.6 745.5 1,747.1 732.7 560.6 1,293.3 Immunology: Taltz ® 509.3 234.9 744.2 493.8 186.1 679.9 Olumiant ® (4) 65.7 165.7 231.4 22.9 160.0 182.9 Other immunology — 11.4 11.4 — 3.6 3.6 Total immunology 575.0 412.0 986.9 516.7 349.7 866.4 Neuroscience: Zyprexa (5) 49.9 1,431.5 1,481.4 8.0 73.4 81.4 Emgality ® 126.5 42.1 168.5 114.0 54.6 168.5 Other neuroscience 31.0 87.0 118.2 23.8 99.4 123.3 Total neuroscience 207.4 1,560.6 1,768.1 145.8 227.4 373.2 Other: Forteo ® 101.2 45.2 146.4 112.7 64.4 177.1 Cialis ® 4.9 82.0 86.8 8.1 107.7 115.7 COVID-19 antibodies (6) — — — 386.6 — 386.6 Other 18.0 24.8 42.9 30.9 35.7 66.6 Total other 124.1 152.0 276.1 538.3 207.8 746.0 Revenue $ 5,368.1 $ 4,130.5 $ 9,498.6 $ 4,422.1 $ 2,519.4 $ 6,941.6 Numbers may not add due to rounding. (1) Jardiance revenue includes Glyxambi ® , Synjardy ® , and Trijardy ® XR. (2) Humalog revenue includes insulin lispro. (3) Basaglar revenue includes Rezvoglar ® . (4) Olumiant revenue includes sales for baricitinib that were made pursuant to Emergency Use Authorization (EUA) or similar regulatory authorizations. (5) Zyprexa revenue includes sale of rights for the olanzapine portfolio. (6) COVID-19 antibodies include sales for bamlanivimab administered alone, for bamlanivimab and etesevimab administered together, and for bebtelovimab and were made pursuant to EUAs or similar regulatory authorizations. The following table summarizes revenue, including net product revenue and collaboration and other revenue, by product for the nine months ended September 30, 2023 and 2022: Nine Months Ended September 30, 2023 2022 U.S. Outside U.S. Total U.S. Outside U.S. Total Diabetes: Trulicity $ 4,177.7 $ 1,285.6 $ 5,463.2 $ 4,162.4 $ 1,341.1 $ 5,503.5 Mounjaro 2,729.1 228.4 2,957.5 109.9 93.3 203.2 Jardiance (1) 1,131.5 815.1 1,946.6 831.4 622.4 1,453.7 Humalog (2) 695.6 601.2 1,296.8 855.8 656.4 1,512.3 Humulin 488.6 175.4 664.0 562.3 223.1 785.4 Baqsimi 633.1 25.4 658.4 79.5 21.7 101.2 Basaglar (3) 329.7 213.4 543.1 339.9 218.8 558.7 Other diabetes 131.1 260.7 392.0 116.1 254.8 371.0 Total diabetes 10,316.4 3,605.2 13,921.6 7,057.3 3,431.6 10,489.0 Oncology: Verzenio 1,734.2 983.7 2,717.9 1,100.5 575.1 1,675.6 Cyramza 303.6 417.5 721.1 259.3 434.3 693.6 Erbitux 398.3 48.0 446.3 361.0 47.4 408.3 Alimta 59.2 113.5 172.6 490.5 200.5 691.1 Other oncology 194.7 521.4 716.2 124.1 422.3 546.4 Total oncology 2,690.0 2,084.1 4,774.1 2,335.4 1,679.6 4,015.0 Immunology: Taltz 1,293.8 681.2 1,975.0 1,212.6 561.6 1,774.2 Olumiant (4) 158.8 520.4 679.2 104.6 520.1 624.7 Other immunology — 39.0 39.0 0.1 12.1 12.1 Total immunology 1,452.6 1,240.6 2,693.2 1,317.3 1,093.8 2,411.0 Neuroscience: Zyprexa (5) 69.1 1,581.9 1,651.0 26.2 235.5 261.7 Emgality 354.0 138.2 492.2 330.8 144.4 475.2 Other neuroscience 89.7 282.9 372.6 87.0 337.0 424.0 Total neuroscience 512.8 2,003.0 2,515.8 444.0 716.9 1,160.9 Other: Forteo 269.2 147.6 416.8 261.4 191.7 453.0 Cialis 21.6 281.1 302.7 25.8 454.7 480.4 COVID-19 antibodies (6) — — — 1,970.9 14.7 1,985.5 Other 73.0 73.4 146.5 119.4 125.1 244.8 Total other 363.8 502.1 866.0 2,377.5 786.2 3,163.7 Revenue $ 15,335.6 $ 9,435.0 $ 24,770.7 $ 13,531.5 $ 7,708.1 $ 21,239.6 Numbers may not add due to rounding. (1) Jardiance revenue includes Glyxambi, Synjardy, and Trijardy XR. (2) Humalog revenue includes insulin lispro. (3) Basaglar revenue includes Rezvoglar. (4) Olumiant revenue includes sales for baricitinib that were made pursuant to EUA or similar regulatory authorizations. (5) Zyprexa revenue includes sale of rights for the olanzapine portfolio. (6) COVID-19 antibodies include sales for bamlanivimab administered alone, for bamlanivimab and etesevimab administered together, and for bebtelovimab and were made pursuant to EUAs or similar regulatory authorizations. The following table summarizes revenue by geographical area: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Revenue (1) : U.S. $ 5,368.1 $ 4,422.1 $ 15,335.6 $ 13,531.5 Europe 2,568.6 1,056.4 4,837.1 3,224.8 Japan 390.8 487.7 1,233.6 1,352.3 China 390.8 343.4 1,162.6 1,102.0 Other foreign countries 780.3 632.0 2,201.8 2,029.1 Revenue $ 9,498.6 $ 6,941.6 $ 24,770.7 $ 21,239.6 Numbers may not add due to rounding. (1) Revenue is attributed to the countries based on the location of the customer or other party. |
Schedule of amounts recorded for contract liabilities | The following table summarizes contract liability balances: September 30, 2023 December 31, 2022 Contract liabilities $ 200.7 $ 219.2 |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of the amounts recognized for assets acquired and liabilities assumed | The following table summarizes the preliminary amounts recognized for assets acquired and liabilities assumed as of the acquisition date: Estimated Fair Value at December 1, 2022 Cash $ 153.2 Acquired IPR&D (1) 184.0 Goodwill (2) 187.1 Other assets and liabilities, net 23.0 Acquisition date fair value of consideration transferred 547.3 Less: Cash acquired (153.2) Fair value of CVR liability (3) (66.9) Cash paid, net of cash acquired $ 327.2 (1) Acquired IPR&D intangibles primarily relate to GJB2. (2) The goodwill recognized from this acquisition is attributable primarily to future unidentified projects and products and the assembled workforce for Akouos and is not deductible for tax purposes. |
Schedule of research and development assets acquired other than through business combination | The following table summarizes our significant asset acquisitions during the nine months ended September 30, 2023 and 2022: Counterparty Compound(s), Therapy or Asset Acquisition Month Phase of Development (1) Acquired IPR&D Expense DICE Therapeutics, Inc. DC-806, an oral IL-17 inhibitor for the treatment of chronic diseases in immunology August 2023 Phase II $ 1,915.5 Versanis Bio, Inc. Bimagrumab, a monoclonal antibody for the treatment of people living with obesity and obesity-related complications August 2023 Phase II 604.1 Emergence Therapeutics AG ETx-22, a Nectin-4 antibody-drug conjugate for the treatment of urothelial cancer August 2023 Pre-clinical 406.5 BioMarin Pharmaceutical Inc. Priority Review Voucher February 2022 Not applicable 110.0 (1) |
Collaborations and Other Arra_2
Collaborations and Other Arrangements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of significant milestones and revenue recognized | The table below summarizes the net milestones capitalized with respect to the Jardiance and Trajenta families of products and the net milestones deferred with respect to the Basaglar product family as of September 30, 2023 and December 31, 2022: Net Milestones Capitalized (Deferred) (1) September 30, 2023 December 31, 2022 Jardiance $ 101.3 $ 116.2 Trajenta 45.0 63.5 Basaglar (116.6) (130.6) (1) This represents the amounts that have been capitalized (deferred) from the start of this collaboration through the end of the reporting period, net of amount amortized. The following table summarizes our collaboration and other revenue recognized with respect to the Jardiance and Trajenta families of products and net product revenue recognized with respect to the Basaglar product family: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Jardiance $ 700.8 $ 573.3 $ 1,946.6 $ 1,453.7 Basaglar 179.6 193.0 543.1 558.7 Trajenta 95.2 103.8 284.7 293.0 Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Olumiant $ 231.4 $ 182.9 $ 679.2 $ 624.7 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of the contractual maturities of our investments in debt securities measured at fair value | The table below summarizes the contractual maturities of our investments in debt securities measured at fair value as of September 30, 2023: Maturities by Period Total Less Than 1-5 6-10 More Than Fair value of debt securities $ 628.3 $ 88.2 $ 201.6 $ 109.4 $ 229.1 |
Schedule of the fair value of available-for-sale securities in an unrealized gain or loss position | A summary of the amount of unrealized gains and losses in accumulated other comprehensive loss and the fair value of available-for-sale securities in an unrealized gain or loss position follows: September 30, 2023 December 31, 2022 Unrealized gross gains $ 0.1 $ 0.6 Unrealized gross losses 59.7 49.2 Fair value of securities in an unrealized gain position 30.4 46.8 Fair value of securities in an unrealized loss position 559.6 568.7 |
Schedule of activity related to our available-for-sale securities | Activity related to our available-for-sale securities was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Proceeds from sales $ 60.0 $ 50.5 $ 121.8 $ 115.6 Realized gross gains on sales 0.3 — 0.6 0.2 Realized gross losses on sales 1.9 7.5 3.6 9.0 |
Schedule of fair value information, assets | The following table summarizes certain fair value information at September 30, 2023 and December 31, 2022 for investment assets measured at fair value on a recurring basis, as well as the carrying amount and amortized cost of certain other investments: Fair Value Measurements Using Carrying Cost (1) Quoted Prices in Active Markets for Identical Assets Significant Other Significant Fair September 30, 2023 Cash equivalents (2) $ 1,201.4 $ 1,201.4 $ 1,196.5 $ 4.9 $ — $ 1,201.4 Short-term investments: U.S. government and agency securities $ 30.2 $ 30.6 $ 30.2 $ — $ — $ 30.2 Corporate debt securities 57.4 57.7 — 57.4 — 57.4 Asset-backed securities 0.6 0.6 — 0.6 — 0.6 Other securities 24.9 24.9 — 11.0 13.9 24.9 Short-term investments $ 113.1 Noncurrent investments: U.S. government and agency securities $ 139.3 $ 160.0 $ 139.3 $ — $ — $ 139.3 Corporate debt securities 198.6 222.3 — 198.6 — 198.6 Mortgage-backed securities 144.9 161.9 — 144.9 — 144.9 Asset-backed securities 57.2 59.5 — 57.2 — 57.2 Other securities 171.1 77.0 — 6.2 164.9 171.1 Marketable equity securities 532.0 443.2 532.0 — — 532.0 Equity investments without readily determinable fair values (3) 531.4 Equity method investments (3) 917.2 Noncurrent investments $ 2,691.7 December 31, 2022 Cash equivalents (2) $ 657.4 $ 657.4 $ 650.4 $ 7.0 $ — $ 657.4 Short-term investments: U.S. government and agency securities $ 30.8 $ 31.1 $ 30.8 $ — $ — $ 30.8 Corporate debt securities 53.4 53.5 — 53.4 — 53.4 Asset-backed securities 2.0 2.0 — 2.0 — 2.0 Other securities 58.6 58.6 — 39.1 19.5 58.6 Short-term investments $ 144.8 Noncurrent investments: U.S. government and agency securities $ 146.4 $ 163.2 $ 146.4 $ — $ — $ 146.4 Corporate debt securities 213.9 235.8 — 213.9 — 213.9 Mortgage-backed securities 149.2 161.5 — 149.2 — 149.2 Asset-backed securities 50.6 52.5 — 50.6 — 50.6 Other securities 398.6 34.5 — 311.0 87.6 398.6 Marketable equity securities 683.6 484.7 683.6 — — 683.6 Equity investments without readily determinable fair values (3) 478.4 Equity method investments (3) 781.1 Noncurrent investments $ 2,901.8 (1) For available-for-sale debt securities, amounts disclosed represent the securities' amortized cost. (2) We consider all highly liquid investments with a maturity of three months or less from the date of purchase to be cash equivalents. The cost of these investments approximates fair value. (3) Fair value disclosures are not applicable for equity method investments and investments accounted for under the measurement alternative for equity investments. |
Schedule of fair value information, liabilities | The following table summarizes certain fair value information at September 30, 2023 and December 31, 2022 for our short-term and long-term debt: Fair Value Measurements Using Carrying Quoted Prices in Active Markets for Identical Assets Significant Significant Fair Short-term commercial paper borrowings September 30, 2023 $ (1,594.9) $ — $ (1,592.5) $ — $ (1,592.5) December 31, 2022 (1,498.0) — (1,492.0) — (1,492.0) Long-term debt, including current portion September 30, 2023 $ (18,573.4) $ — $ (15,412.6) $ — $ (15,412.6) December 31, 2022 (14,740.6) — (12,329.3) — (12,329.3) The following table summarizes certain fair value information at September 30, 2023 and December 31, 2022 for risk management assets and liabilities measured at fair value on a recurring basis: Fair Value Measurements Using Carrying Quoted Prices in Active Markets for Identical Assets Significant Significant Fair September 30, 2023 Risk-management instruments: Interest rate contracts designated as fair value hedges: Other current liabilities $ (5.6) $ — $ (5.6) $ — $ (5.6) Other noncurrent liabilities (157.7) — (157.7) — (157.7) Interest rate contracts designated as cash flow hedges: Other noncurrent assets 346.2 — 346.2 — 346.2 Cross-currency interest rate contracts designated as net investment hedges: Other receivables 71.3 — 71.3 — 71.3 Cross-currency interest rate contracts designated as cash flow hedges: Other receivables 58.3 — 58.3 — 58.3 Other noncurrent assets 30.7 — 30.7 — 30.7 Foreign exchange contracts designated as net investment hedges: Other receivables 106.0 — 106.0 — 106.0 Foreign exchange contracts not designated as hedging instruments: Other receivables 32.9 — 32.9 — 32.9 Other current liabilities (100.5) — (100.5) — (100.5) Contingent consideration liabilities: Other current liabilities (39.0) — — (39.0) (39.0) Other noncurrent liabilities (63.9) — — (63.9) (63.9) Fair Value Measurements Using Carrying Quoted Prices in Active Markets for Identical Assets Significant Significant Fair December 31, 2022 Risk-management instruments: Interest rate contracts designated as fair value hedges: Other noncurrent liabilities $ (134.3) $ — $ (134.3) $ — $ (134.3) Interest rate contracts designated as cash flow hedges: Other receivables 162.9 — 162.9 — 162.9 Other noncurrent assets 246.0 — 246.0 — 246.0 Cross-currency interest rate contracts designated as net investment hedges: Other receivables 67.6 — 67.6 — 67.6 Cross-currency interest rate contracts designated as cash flow hedges: Other noncurrent assets 53.1 — 53.1 — 53.1 Foreign exchange contracts designated as hedging instruments: Other current liabilities (38.3) — (38.3) — (38.3) Foreign exchange contracts not designated as hedging instruments: Other receivables 26.6 — 26.6 — 26.6 Other current liabilities (21.5) — (21.5) — (21.5) Contingent consideration liabilities: Other current liabilities (39.5) — — (39.5) (39.5) Other noncurrent liabilities (70.6) — — (70.6) (70.6) |
Schedule of derivative instruments | At September 30, 2023, we had outstanding foreign currency forward commitments as follows, all of which have settlement dates within 180 days: September 30, 2023 Purchase Sell Currency Amount Currency Amount Euro 5,774.2 U.S. dollars 6,170.9 U.S. dollars 3,420.4 Euro 3,224.2 U.S. dollars 240.0 Chinese yuan 1,736.5 British pounds 185.7 U.S. dollars 229.7 U.S. dollars 200.2 Japanese yen 29,626.8 |
Schedule of effects of risk-management instruments were recognized in other–net, (income) expense | The following effects of risk-management instruments were recognized in other–net, (income) expense: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Fair value hedges: Effect from hedged fixed-rate debt $ (29.9) $ (62.9) $ (29.0) $ (215.7) Effect from interest rate contracts 29.9 62.9 29.0 215.7 Cash flow hedges: Effective portion of losses on interest rate contracts reclassified from accumulated other comprehensive loss 3.2 4.1 10.3 12.3 Cross-currency interest rate swaps 24.7 33.1 (5.3) 75.0 Net losses on foreign currency exchange contracts not designated as hedging instruments 201.0 129.6 177.8 280.7 Total $ 228.9 $ 166.8 $ 182.8 $ 368.0 |
Schedule of effective portion of risk-management instruments that was recognized in other comprehensive income (loss), net investment hedges | The effective portion of risk-management instruments that was recognized in other comprehensive income (loss) is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Net investment hedges: Foreign currency-denominated notes $ 183.5 $ 435.1 $ 62.3 $ 822.8 Cross-currency interest rate swaps 28.6 92.1 9.0 171.4 Foreign currency forward contracts 217.7 107.8 199.3 121.4 Cash flow hedges: Forward-starting interest rate swaps 84.3 57.5 141.4 337.7 Cross-currency interest rate swaps 16.4 19.9 30.5 38.4 |
Schedule of effective portion of risk-management instruments that was recognized in other comprehensive income (loss), cash flow hedges | The effective portion of risk-management instruments that was recognized in other comprehensive income (loss) is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Net investment hedges: Foreign currency-denominated notes $ 183.5 $ 435.1 $ 62.3 $ 822.8 Cross-currency interest rate swaps 28.6 92.1 9.0 171.4 Foreign currency forward contracts 217.7 107.8 199.3 121.4 Cash flow hedges: Forward-starting interest rate swaps 84.3 57.5 141.4 337.7 Cross-currency interest rate swaps 16.4 19.9 30.5 38.4 |
Schedule of fair value, by balance sheet grouping | The following table summarizes certain fair value information at September 30, 2023 and December 31, 2022 for risk management assets and liabilities measured at fair value on a recurring basis: Fair Value Measurements Using Carrying Quoted Prices in Active Markets for Identical Assets Significant Significant Fair September 30, 2023 Risk-management instruments: Interest rate contracts designated as fair value hedges: Other current liabilities $ (5.6) $ — $ (5.6) $ — $ (5.6) Other noncurrent liabilities (157.7) — (157.7) — (157.7) Interest rate contracts designated as cash flow hedges: Other noncurrent assets 346.2 — 346.2 — 346.2 Cross-currency interest rate contracts designated as net investment hedges: Other receivables 71.3 — 71.3 — 71.3 Cross-currency interest rate contracts designated as cash flow hedges: Other receivables 58.3 — 58.3 — 58.3 Other noncurrent assets 30.7 — 30.7 — 30.7 Foreign exchange contracts designated as net investment hedges: Other receivables 106.0 — 106.0 — 106.0 Foreign exchange contracts not designated as hedging instruments: Other receivables 32.9 — 32.9 — 32.9 Other current liabilities (100.5) — (100.5) — (100.5) Contingent consideration liabilities: Other current liabilities (39.0) — — (39.0) (39.0) Other noncurrent liabilities (63.9) — — (63.9) (63.9) Fair Value Measurements Using Carrying Quoted Prices in Active Markets for Identical Assets Significant Significant Fair December 31, 2022 Risk-management instruments: Interest rate contracts designated as fair value hedges: Other noncurrent liabilities $ (134.3) $ — $ (134.3) $ — $ (134.3) Interest rate contracts designated as cash flow hedges: Other receivables 162.9 — 162.9 — 162.9 Other noncurrent assets 246.0 — 246.0 — 246.0 Cross-currency interest rate contracts designated as net investment hedges: Other receivables 67.6 — 67.6 — 67.6 Cross-currency interest rate contracts designated as cash flow hedges: Other noncurrent assets 53.1 — 53.1 — 53.1 Foreign exchange contracts designated as hedging instruments: Other current liabilities (38.3) — (38.3) — (38.3) Foreign exchange contracts not designated as hedging instruments: Other receivables 26.6 — 26.6 — 26.6 Other current liabilities (21.5) — (21.5) — (21.5) Contingent consideration liabilities: Other current liabilities (39.5) — — (39.5) (39.5) Other noncurrent liabilities (70.6) — — (70.6) (70.6) |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Schedule of net pension and retiree health (benefit) cost | Net pension and retiree health (benefit) cost included the following components: Defined Benefit Pension Plans Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Components of net periodic cost: Service cost $ 72.5 $ 87.1 $ 217.8 $ 264.4 Interest cost 162.3 98.9 486.0 299.0 Expected return on plan assets (264.0) (235.1) (791.5) (711.6) Amortization of prior service cost 0.6 0.6 1.8 1.9 Recognized actuarial loss 30.6 85.3 91.5 256.8 Net periodic cost $ 2.0 $ 36.8 $ 5.6 $ 110.5 Retiree Health Benefit Plans Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Components of net periodic benefit: Service cost $ 7.9 $ 11.7 $ 23.8 $ 35.0 Interest cost 15.3 9.4 46.0 28.4 Expected return on plan assets (45.5) (38.0) (136.6) (114.1) Amortization of prior service benefit (13.3) (13.7) (39.7) (41.1) Recognized actuarial (gain) loss (1.5) 0.2 (4.4) 0.7 Net periodic benefit $ (37.1) $ (30.4) $ (110.9) $ (91.1) |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | |
Schedule of components of other comprehensive income (loss) | The following tables summarize the activity related to each component of other comprehensive income (loss) during the three months ended September 30, 2023 and 2022: (Amounts presented net of taxes) Foreign Currency Translation Gains (Losses) Net Unrealized Gains (Losses) on Available-For-Sale Securities Defined Benefit Pension and Retiree Health Benefit Plans Net Unrealized Gains (Losses) on Cash Flow Hedges Accumulated Other Comprehensive Loss Balance at July 1, 2023 $ (1,885.3) $ (33.5) $ (2,058.8) $ 188.9 $ (3,788.7) Other comprehensive income (loss) before reclassifications (88.7) (13.5) 10.5 79.6 (12.1) Net amount reclassified from accumulated other comprehensive loss — 1.4 13.0 1.5 15.9 Net other comprehensive income (loss) (88.7) (12.1) 23.5 81.1 3.8 Balance at September 30, 2023 $ (1,974.0) $ (45.6) $ (2,035.3) $ 270.0 $ (3,784.9) (Amounts presented net of taxes) Foreign Currency Translation Gains (Losses) Net Unrealized Gains (Losses) on Available-For-Sale Securities Defined Benefit Pension and Retiree Health Benefit Plans Net Unrealized Gains (Losses) on Cash Flow Hedges Accumulated Other Comprehensive Loss Balance at July 1, 2022 $ (1,844.2) $ (27.9) $ (2,443.2) $ 27.6 $ (4,287.7) Other comprehensive income (loss) before reclassifications (165.1) (24.9) 47.8 63.0 (79.2) Net amount reclassified from accumulated other comprehensive loss — 13.5 57.2 0.4 71.1 Net other comprehensive income (loss) (165.1) (11.4) 105.0 63.4 (8.1) Balance at September 30, 2022 $ (2,009.3) $ (39.3) $ (2,338.2) $ 91.0 $ (4,295.8) The following tables summarize the activity related to each component of other comprehensive income (loss) during the nine months ended September 30, 2023 and 2022: (Amounts presented net of taxes) Foreign Currency Translation Gains (Losses) Net Unrealized Gains (Losses) on Available-For-Sale Securities Defined Benefit Pension and Retiree Health Benefit Plans Net Unrealized Gains (Losses) on Cash Flow Hedges Accumulated Other Comprehensive Loss Balance at January 1, 2023 $ (1,874.2) $ (37.1) $ (2,062.3) $ 129.0 $ (3,844.6) Other comprehensive income (loss) before reclassifications (74.6) (11.3) (11.9) 135.8 38.0 Net amount reclassified from accumulated other comprehensive loss (25.2) 2.8 38.9 5.2 21.7 Net other comprehensive income (loss) (99.8) (8.5) 27.0 141.0 59.7 Balance at September 30, 2023 $ (1,974.0) $ (45.6) $ (2,035.3) $ 270.0 $ (3,784.9) (Amounts presented net of taxes) Foreign Currency Translation Gains (Losses) Net Unrealized Gains (Losses) on Available-For-Sale Securities Defined Benefit Pension and Retiree Health Benefit Plans Net Unrealized Gains (Losses) on Cash Flow Hedges Accumulated Other Comprehensive Loss Balance at January 1, 2022 $ (1,550.2) $ 3.7 $ (2,583.6) $ (213.0) $ (4,343.1) Other comprehensive income (loss) before reclassifications (459.7) (55.5) 72.9 297.2 (145.1) Net amount reclassified from accumulated other comprehensive loss 0.6 12.5 172.5 6.8 192.4 Net other comprehensive income (loss) (459.1) (43.0) 245.4 304.0 47.3 Balance at September 30, 2022 $ (2,009.3) $ (39.3) $ (2,338.2) $ 91.0 $ (4,295.8) The tax effects on the net activity related to each component of other comprehensive income (loss) were as follows: Three Months Ended September 30, Nine Months Ended September 30, Tax benefit (expense) 2023 2022 2023 2022 Foreign currency translation gains/losses $ (90.3) $ (133.3) $ (50.2) $ (234.2) Net unrealized gains/losses on available-for-sale securities 3.5 3.4 2.5 13.1 Defined benefit pension and retiree health benefit plans (6.9) (22.4) (13.9) (73.2) Net unrealized gains/losses on cash flow hedges (21.6) (16.9) (37.5) (80.8) Benefit (expense) for income taxes allocated to other comprehensive income (loss) items $ (115.3) $ (169.2) $ (99.1) $ (375.1) |
Schedule of reclassifications out of accumulated other comprehensive loss | Reclassifications out of accumulated other comprehensive loss were as follows: Details about Accumulated Other Comprehensive Loss Components Three Months Ended September 30, Nine Months Ended September 30, Affected Line Item in the Consolidated Condensed Statements of Operations 2023 2022 2023 2022 Amortization of retirement benefit items: Prior service benefits, net $ (12.7) $ (13.1) $ (37.9) $ (39.2) Other–net, (income) expense Actuarial losses, net 29.1 85.5 87.1 257.5 Other–net, (income) expense Total before tax 16.4 72.4 49.2 218.3 Tax benefit (3.4) (15.2) (10.3) (45.8) Income taxes Net of tax 13.0 57.2 38.9 172.5 Other, net of tax 2.9 13.9 (17.2) 19.9 Other–net, (income) expense Total reclassifications, net of tax $ 15.9 $ 71.1 $ 21.7 $ 192.4 |
Other_Net, (Income) Expense (Ta
Other–Net, (Income) Expense (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Nonoperating Income (Expense) [Abstract] | |
Schedule of other–net, (income) expense | Other–net, (income) expense consisted of the following: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Interest expense $ 124.6 $ 81.5 $ 347.7 $ 247.6 Interest income (48.9) (20.1) (129.1) (37.3) Net investment losses on equity securities (Note 6) 62.9 123.3 141.5 667.6 Retirement benefit plans (115.5) (92.4) (346.9) (280.0) Other (income) expense 0.1 18.7 11.1 (17.0) Other–net, (income) expense $ 23.2 $ 111.0 $ 24.3 $ 580.9 |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Reclassification [Line Items] | ||
Increase in net cash provided by operating activities | $ 4,552 | $ 5,923 |
Increase in net cash used in investing activities | $ (4,228.4) | (2,819.4) |
Revision of Prior Period, Reclassification, Adjustment | ||
Reclassification [Line Items] | ||
Increase in net cash provided by operating activities | 418.3 | |
Increase in net cash used in investing activities | $ 418.3 |
Revenue (Schedule of Revenue Re
Revenue (Schedule of Revenue Recognized) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 9,498.6 | $ 6,941.6 | $ 24,770.7 | $ 21,239.6 |
Net product revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 7,306.2 | 6,119.2 | 20,524.2 | 19,123 |
Collaboration and other revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,192.4 | 822.4 | 4,246.5 | 2,116.6 |
Collaboration and other revenue associated with prior period transfers of intellectual property | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 31.3 | $ 43.3 | $ 86.8 | $ 130.9 |
Revenue (Adjustments to Revenue
Revenue (Adjustments to Revenue) (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
U.S. | Sales returns, rebates, and discounts | ||||
Change in Accounting Estimate [Line Items] | ||||
Revenue, information used to determine revenue recognized, change in accounting estimate, percent (less than) | 2% | 3% | 1% | 1% |
Revenue (Contract Liabilities)
Revenue (Contract Liabilities) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Contract liabilities | $ 200.7 | $ 219.2 |
Revenue (Disaggregation of Reve
Revenue (Disaggregation of Revenue by Product) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 9,498,600,000 | $ 6,941,600,000 | $ 24,770,700,000 | $ 21,239,600,000 |
U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 5,368,100,000 | 4,422,100,000 | 15,335,600,000 | 13,531,500,000 |
Outside U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 4,130,500,000 | 2,519,400,000 | 9,435,000,000 | 7,708,100,000 |
Diabetes | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 4,720,400,000 | 3,662,600,000 | 13,921,600,000 | 10,489,000,000 |
Diabetes | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 3,460,000,000 | 2,488,600,000 | 10,316,400,000 | 7,057,300,000 |
Diabetes | Outside U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,260,300,000 | 1,174,000,000 | 3,605,200,000 | 3,431,600,000 |
Trulicity® | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,673,600,000 | 1,850,400,000 | 5,463,200,000 | 5,503,500,000 |
Trulicity® | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,259,000,000 | 1,418,300,000 | 4,177,700,000 | 4,162,400,000 |
Trulicity® | Outside U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 414,600,000 | 432,000,000 | 1,285,600,000 | 1,341,100,000 |
Mounjaro® | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,409,300,000 | 187,300,000 | 2,957,500,000 | 203,200,000 |
Mounjaro® | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,277,000,000 | 97,300,000 | 2,729,100,000 | 109,900,000 |
Mounjaro® | Outside U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 132,400,000 | 90,000,000 | 228,400,000 | 93,300,000 |
Jardiance | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 700,800,000 | 573,300,000 | 1,946,600,000 | 1,453,700,000 |
Jardiance | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 415,900,000 | 350,900,000 | 1,131,500,000 | 831,400,000 |
Jardiance | Outside U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 284,800,000 | 222,400,000 | 815,100,000 | 622,400,000 |
Humalog® | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 395,400,000 | 447,000,000 | 1,296,800,000 | 1,512,300,000 |
Humalog® | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 194,200,000 | 248,100,000 | 695,600,000 | 855,800,000 |
Humalog® | Outside U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 201,200,000 | 198,800,000 | 601,200,000 | 656,400,000 |
Humulin® | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 206,700,000 | 238,200,000 | 664,000,000 | 785,400,000 |
Humulin® | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 145,500,000 | 169,500,000 | 488,600,000 | 562,300,000 |
Humulin® | Outside U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 61,200,000 | 68,700,000 | 175,400,000 | 223,100,000 |
Basaglar® | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 179,600,000 | 193,000,000 | 543,100,000 | 558,700,000 |
Basaglar® | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 111,400,000 | 124,800,000 | 329,700,000 | 339,900,000 |
Basaglar® | Outside U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 68,200,000 | 68,100,000 | 213,400,000 | 218,800,000 |
Baqsimi | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 13,100,000 | 43,000,000 | 658,400,000 | 101,200,000 |
Baqsimi | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 3,800,000 | 35,200,000 | 633,100,000 | 79,500,000 |
Baqsimi | Outside U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 9,300,000 | 7,800,000 | 25,400,000 | 21,700,000 |
Other diabetes | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 141,900,000 | 130,400,000 | 392,000,000 | 371,000,000 |
Other diabetes | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 53,200,000 | 44,500,000 | 131,100,000 | 116,100,000 |
Other diabetes | Outside U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 88,600,000 | 86,200,000 | 260,700,000 | 254,800,000 |
Oncology | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,747,100,000 | 1,293,300,000 | 4,774,100,000 | 4,015,000,000 |
Oncology | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,001,600,000 | 732,700,000 | 2,690,000,000 | 2,335,400,000 |
Oncology | Outside U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 745,500,000 | 560,600,000 | 2,084,100,000 | 1,679,600,000 |
Verzenio® | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,040,200,000 | 617,700,000 | 2,717,900,000 | 1,675,600,000 |
Verzenio® | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 684,600,000 | 414,800,000 | 1,734,200,000 | 1,100,500,000 |
Verzenio® | Outside U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 355,700,000 | 202,900,000 | 983,700,000 | 575,100,000 |
Cyramza® | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 224,100,000 | 232,100,000 | 721,100,000 | 693,600,000 |
Cyramza® | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 88,000,000 | 87,500,000 | 303,600,000 | 259,300,000 |
Cyramza® | Outside U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 136,100,000 | 144,600,000 | 417,500,000 | 434,300,000 |
Erbitux® | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 153,900,000 | 144,900,000 | 446,300,000 | 408,300,000 |
Erbitux® | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 134,000,000 | 126,300,000 | 398,300,000 | 361,000,000 |
Erbitux® | Outside U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 19,900,000 | 18,700,000 | 48,000,000 | 47,400,000 |
Alimta® | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 53,500,000 | 119,400,000 | 172,600,000 | 691,100,000 |
Alimta® | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 21,200,000 | 64,600,000 | 59,200,000 | 490,500,000 |
Alimta® | Outside U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 32,300,000 | 54,800,000 | 113,500,000 | 200,500,000 |
Other oncology | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 275,400,000 | 179,200,000 | 716,200,000 | 546,400,000 |
Other oncology | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 73,800,000 | 39,500,000 | 194,700,000 | 124,100,000 |
Other oncology | Outside U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 201,500,000 | 139,600,000 | 521,400,000 | 422,300,000 |
Immunology | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 986,900,000 | 866,400,000 | 2,693,200,000 | 2,411,000,000 |
Immunology | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 575,000,000 | 516,700,000 | 1,452,600,000 | 1,317,300,000 |
Immunology | Outside U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 412,000,000 | 349,700,000 | 1,240,600,000 | 1,093,800,000 |
Taltz® | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 744,200,000 | 679,900,000 | 1,975,000,000 | 1,774,200,000 |
Taltz® | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 509,300,000 | 493,800,000 | 1,293,800,000 | 1,212,600,000 |
Taltz® | Outside U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 234,900,000 | 186,100,000 | 681,200,000 | 561,600,000 |
Olumiant® | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 231,400,000 | 182,900,000 | 679,200,000 | 624,700,000 |
Olumiant® | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 65,700,000 | 22,900,000 | 158,800,000 | 104,600,000 |
Olumiant® | Outside U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 165,700,000 | 160,000,000 | 520,400,000 | 520,100,000 |
Other immunology | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 11,400,000 | 3,600,000 | 39,000,000 | 12,100,000 |
Other immunology | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 100,000 |
Other immunology | Outside U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 11,400,000 | 3,600,000 | 39,000,000 | 12,100,000 |
Neuroscience | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,768,100,000 | 373,200,000 | 2,515,800,000 | 1,160,900,000 |
Neuroscience | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 207,400,000 | 145,800,000 | 512,800,000 | 444,000,000 |
Neuroscience | Outside U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,560,600,000 | 227,400,000 | 2,003,000,000 | 716,900,000 |
Zyprexa | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,481,400,000 | 81,400,000 | 1,651,000,000 | 261,700,000 |
Zyprexa | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 49,900,000 | 8,000,000 | 69,100,000 | 26,200,000 |
Zyprexa | Outside U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,431,500,000 | 73,400,000 | 1,581,900,000 | 235,500,000 |
Emgality® | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 168,500,000 | 168,500,000 | 492,200,000 | 475,200,000 |
Emgality® | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 126,500,000 | 114,000,000 | 354,000,000 | 330,800,000 |
Emgality® | Outside U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 42,100,000 | 54,600,000 | 138,200,000 | 144,400,000 |
Other neuroscience | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 118,200,000 | 123,300,000 | 372,600,000 | 424,000,000 |
Other neuroscience | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 31,000,000 | 23,800,000 | 89,700,000 | 87,000,000 |
Other neuroscience | Outside U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 87,000,000 | 99,400,000 | 282,900,000 | 337,000,000 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 276,100,000 | 746,000,000 | 866,000,000 | 3,163,700,000 |
Other | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 124,100,000 | 538,300,000 | 363,800,000 | 2,377,500,000 |
Other | Outside U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 152,000,000 | 207,800,000 | 502,100,000 | 786,200,000 |
Forteo® | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 146,400,000 | 177,100,000 | 416,800,000 | 453,000,000 |
Forteo® | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 101,200,000 | 112,700,000 | 269,200,000 | 261,400,000 |
Forteo® | Outside U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 45,200,000 | 64,400,000 | 147,600,000 | 191,700,000 |
Cialis® | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 86,800,000 | 115,700,000 | 302,700,000 | 480,400,000 |
Cialis® | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 4,900,000 | 8,100,000 | 21,600,000 | 25,800,000 |
Cialis® | Outside U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 82,000,000 | 107,700,000 | 281,100,000 | 454,700,000 |
COVID-19 antibodies | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 386,600,000 | 0 | 1,985,500,000 |
COVID-19 antibodies | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 386,600,000 | 0 | 1,970,900,000 |
COVID-19 antibodies | Outside U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 14,700,000 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 42,900,000 | 66,600,000 | 146,500,000 | 244,800,000 |
Other | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 18,000,000 | 30,900,000 | 73,000,000 | 119,400,000 |
Other | Outside U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 24,800,000 | $ 35,700,000 | $ 73,400,000 | $ 125,100,000 |
Revenue (Disaggregation of Re_2
Revenue (Disaggregation of Revenue by Geographical Area) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 9,498.6 | $ 6,941.6 | $ 24,770.7 | $ 21,239.6 |
U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 5,368.1 | 4,422.1 | 15,335.6 | 13,531.5 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,568.6 | 1,056.4 | 4,837.1 | 3,224.8 |
Japan | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 390.8 | 487.7 | 1,233.6 | 1,352.3 |
China | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 390.8 | 343.4 | 1,162.6 | 1,102 |
Other foreign countries | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 780.3 | $ 632 | $ 2,201.8 | $ 2,029.1 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Dec. 01, 2022 USD ($) | Oct. 31, 2023 USD ($) $ / shares | Dec. 31, 2022 USD ($) right $ / shares | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | |
Business Acquisition [Line Items] | |||||||
Acquired in-process research and development (Note 3) | $ 2,975.1 | $ 62.4 | $ 3,177.2 | $ 668.4 | |||
Acquired IPR&D Expense | $ 333.8 | ||||||
Akouos Acquisition | |||||||
Business Acquisition [Line Items] | |||||||
Business acquisition, share price (in dollars per share) | $ / shares | $ 12.50 | ||||||
Cash paid, net of cash acquired | $ 327.2 | $ 327.2 | |||||
Consideration transferred, number of contingent value rights | right | 1 | ||||||
Contingent value right, additional price per share (up to) (in dollars per share) | $ / shares | $ 3 | ||||||
Contingent value right, additional price per share, aggregate amount | $ 122 | ||||||
Biopharma Global Inc | Subsequent Event | |||||||
Business Acquisition [Line Items] | |||||||
Business acquisition, share price (in dollars per share) | $ / shares | $ 12.50 | ||||||
Payments to acquire businesses | $ 1,400 |
Acquisitions (Assets Acquired a
Acquisitions (Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Millions | 1 Months Ended | ||
Dec. 01, 2022 | Dec. 31, 2022 | Sep. 30, 2023 | |
Business Acquisition [Line Items] | |||
Goodwill | $ 4,073 | $ 4,085.2 | |
Akouos Acquisition | |||
Business Acquisition [Line Items] | |||
Cash | $ 153.2 | ||
Acquired IPR&D | 184 | ||
Goodwill | 187.1 | ||
Other assets and liabilities, net | 23 | ||
Acquisition date fair value of consideration transferred | 547.3 | ||
Cash acquired | (153.2) | ||
Fair value of CVR liability | (66.9) | ||
Cash paid, net of cash acquired | $ 327.2 | $ 327.2 |
Acquisitions (Asset Acquisition
Acquisitions (Asset Acquisitions) (Details) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended | |
Aug. 31, 2023 | Feb. 28, 2022 | Sep. 30, 2022 | |
Business Acquisition [Line Items] | |||
Acquired IPR&D Expense | $ 333.8 | ||
DICE Therapeutics, Inc. | |||
Business Acquisition [Line Items] | |||
Acquired IPR&D Expense | $ 1,915.5 | ||
Versanis Bio, Inc. | |||
Business Acquisition [Line Items] | |||
Acquired IPR&D Expense | 604.1 | ||
Emergence Therapeutics AG | |||
Business Acquisition [Line Items] | |||
Acquired IPR&D Expense | $ 406.5 | ||
BioMarin Pharmaceutical Inc. | |||
Business Acquisition [Line Items] | |||
Acquired IPR&D Expense | $ 110 |
Collaborations and Other Arra_3
Collaborations and Other Arrangements (Milestones (Deferred) Capitalized) (Details) - Milestone Payments, Development and Regulatory, Capitalized (Deferred), Cumulative - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Jardiance | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Potential achievements | $ 101.3 | $ 116.2 |
Trajenta | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Potential achievements | 45 | 63.5 |
Basaglar | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Potential achievements | $ (116.6) | $ (130.6) |
Collaborations and Other Arra_4
Collaborations and Other Arrangements (Net Product Revenue) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Revenue | $ 9,498.6 | $ 6,941.6 | $ 24,770.7 | $ 21,239.6 |
Jardiance | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Revenue | 700.8 | 573.3 | 1,946.6 | 1,453.7 |
Basaglar | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Revenue | 179.6 | 193 | 543.1 | 558.7 |
Trajenta | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Revenue | 95.2 | 103.8 | 284.7 | 293 |
Olumiant | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Revenue | $ 231.4 | $ 182.9 | $ 679.2 | $ 624.7 |
Collaborations and Other Arra_5
Collaborations and Other Arrangements (Narrative) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Jul. 31, 2023 | Jun. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Revenue | $ 9,498,600,000 | $ 6,941,600,000 | $ 24,770,700,000 | $ 21,239,600,000 | |||
Proceeds from sale of product rights | 1,604,300,000 | 65,800,000 | |||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Olanzapine Portfolio | |||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Proceeds from sale of product rights | $ 1,050,000,000 | ||||||
Additional cash proceeds | 305,000,000 | ||||||
Milestone payment received | $ 50,000,000 | ||||||
Revenue recognized | 1,420,000,000 | 1,420,000,000 | |||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Baqsimi | |||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Proceeds from sale of product rights | $ 500,000,000 | ||||||
Additional cash proceeds | 125,000,000 | ||||||
Milestone payment received | $ 450,000,000 | ||||||
Revenue recognized | 579,000,000 | ||||||
Olumiant® | |||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Revenue | 231,400,000 | 182,900,000 | 679,200,000 | 624,700,000 | |||
COVID-19 antibodies | |||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Revenue | 0 | $ 386,600,000 | $ 0 | $ 1,985,500,000 | |||
Royalty Agreement Terms | Olumiant® | |||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Collaborative arrangement, rights and obligations percent (up to) | 20% | ||||||
Milestone Payments, Capitalized as Intangible Assets | Olumiant® | |||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Potential achievements | 330,000,000 | $ 330,000,000 | $ 330,000,000 | ||||
Milestone Payments, Sales-based | Olumiant® | |||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Potential achievements | 100,000,000 | 100,000,000 | |||||
Milestone Payments, Sales-based | Lebrikizumab | |||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Potential achievements | 1,250,000,000 | 1,250,000,000 | |||||
Milestone Payments, Sales-based | Lebrikizumab | Roche | |||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Potential achievements | 1,030,000,000 | 1,030,000,000 | |||||
Milestone Payments, Development and Regulatory | Lebrikizumab | |||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Potential achievements | 65,000,000 | 65,000,000 | |||||
Milestone Payments, Development and Regulatory | Lebrikizumab | Roche | |||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Potential achievements | $ 160,000,000 | $ 160,000,000 |
Asset Impairment, Restructuri_2
Asset Impairment, Restructuring, and Other Special Charges (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Restructuring and Related Activities [Abstract] | ||||
Asset impairment, restructuring, and other special charges (Note 5) | $ 0 | $ 206,500,000 | $ 0 | $ 206,500,000 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) € in Millions, ¥ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 USD ($) | Feb. 28, 2023 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 EUR (€) | Sep. 30, 2023 CNY (¥) | Dec. 31, 2022 USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Net investment losses on equity securities | $ 62,900,000 | $ 123,300,000 | $ 141,500,000 | $ 667,600,000 | |||||
Unfunded commitments to invest in venture capital funds | $ 915,000,000 | 915,000,000 | $ 915,000,000 | ||||||
Unfunded commitments to invest in venture capital funds, anticipated payment period | 10 years | ||||||||
Percentage of nonperforming assets | 99% | ||||||||
Accounts receivable derecognized | 403,800,000 | 403,800,000 | $ 403,800,000 | $ 422,100,000 | |||||
Average remaining maturity of foreign currency derivatives | 12 months | ||||||||
Maximum remaining maturity of foreign currency derivatives | 180 days | ||||||||
Foreign currency-denominated notes, designated as hedge | $ 5,380,000,000 | $ 5,380,000,000 | $ 5,380,000,000 | 5,450,000,000 | |||||
Variable rate | 12% | 12% | 12% | 12% | 12% | ||||
Losses expected to be reclassified in the next 12 months | $ 13,100,000 | $ 13,100,000 | $ 13,100,000 | ||||||
Swap U.S. Dollars to Euro | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Derivative liability, notional amount | 1,010,000,000 | 1,010,000,000 | 1,010,000,000 | ||||||
Swap Swiss Francs to U.S. Dollars | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Derivative liability, notional amount | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | ||||||
Sell Euro | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Derivative asset, notional amount | € | € 5,230 | ||||||||
Sell Chinese Yuan | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Derivative asset, notional amount | ¥ | ¥ 1,800 | ||||||||
Forward-starting interest rate swaps | Cash Flow Hedging | Designated as Hedging Instrument | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Derivative, notional amount | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | ||||||
Foreign Currency Denominated Debt | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Long-term debt | 6,740,000,000 | 6,740,000,000 | 6,740,000,000 | $ 6,830,000,000 | |||||
5.0% Notes Due 2026 | Senior Notes | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Debt instrument, face amount | $ 750,000,000 | ||||||||
Stated interest rate | 5% | ||||||||
4.7% Notes Due 2033 | Senior Notes | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Debt instrument, face amount | $ 1,000,000,000 | ||||||||
Stated interest rate | 4.70% | ||||||||
4.875% Notes Due 2053 | Senior Notes | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Debt instrument, face amount | $ 1,250,000,000 | ||||||||
Stated interest rate | 4.875% | ||||||||
4.95% Notes Due 2063 | Senior Notes | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Debt instrument, face amount | $ 1,000,000,000 | ||||||||
Stated interest rate | 4.95% | ||||||||
Senior Notes Due 2026, 2033, 2053 And 2063 | Senior Notes | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Proceeds from issuance of debt | $ 3,960,000,000 | ||||||||
Credit Facility 2024 | Maturity Date 2024 | Line of Credit | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | $ 4,000,000,000 | $ 4,000,000,000 | $ 4,000,000,000 | ||||||
Debt instrument, term | 364 days |
Financial Instruments (Schedule
Financial Instruments (Schedule of Contractual Maturities) (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Total | $ 628.3 |
Less Than 1 Year | 88.2 |
1-5 Years | 201.6 |
6-10 Years | 109.4 |
More Than 10 Years | $ 229.1 |
Financial Instruments (Unrealiz
Financial Instruments (Unrealized Gains and Losses) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Unrealized gross gains | $ 0.1 | $ 0.6 |
Unrealized gross losses | 59.7 | 49.2 |
Fair value of securities in an unrealized gain position | 30.4 | 46.8 |
Fair value of securities in an unrealized loss position | $ 559.6 | $ 568.7 |
Financial Instruments (Realized
Financial Instruments (Realized Gains and Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Proceeds from sales | $ 60 | $ 50.5 | $ 121.8 | $ 115.6 |
Realized gross gains on sales | 0.3 | 0 | 0.6 | 0.2 |
Realized gross losses on sales | $ 1.9 | $ 7.5 | $ 3.6 | $ 9 |
Financial Instruments (Schedu_2
Financial Instruments (Schedule of Fair Value Measurement) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Noncurrent investments | $ 2,691.7 | $ 2,901.8 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,201.4 | 657.4 |
Short-term investments | 113.1 | 144.8 |
Equity investments without readily determinable fair values | 531.4 | 478.4 |
Equity method investments | 917.2 | 781.1 |
Noncurrent investments | 2,691.7 | 2,901.8 |
Carrying Amount | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 30.2 | 30.8 |
Noncurrent investments | 139.3 | 146.4 |
Carrying Amount | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 57.4 | 53.4 |
Noncurrent investments | 198.6 | 213.9 |
Carrying Amount | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Noncurrent investments | 144.9 | 149.2 |
Carrying Amount | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0.6 | 2 |
Noncurrent investments | 57.2 | 50.6 |
Carrying Amount | Other securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 24.9 | 58.6 |
Carrying Amount | Other securities, noncurrent investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 171.1 | 398.6 |
Carrying Amount | Marketable equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 532 | 683.6 |
Cost | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,201.4 | 657.4 |
Cost | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 30.6 | 31.1 |
Noncurrent investments | 160 | 163.2 |
Cost | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 57.7 | 53.5 |
Noncurrent investments | 222.3 | 235.8 |
Cost | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Noncurrent investments | 161.9 | 161.5 |
Cost | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0.6 | 2 |
Noncurrent investments | 59.5 | 52.5 |
Cost | Other securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 24.9 | 58.6 |
Cost | Other securities, noncurrent investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 77 | 34.5 |
Cost | Marketable equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 443.2 | 484.7 |
Estimate of Fair Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,201.4 | 657.4 |
Estimate of Fair Value Measurement | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 30.2 | 30.8 |
Noncurrent investments | 139.3 | 146.4 |
Estimate of Fair Value Measurement | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 57.4 | 53.4 |
Noncurrent investments | 198.6 | 213.9 |
Estimate of Fair Value Measurement | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Noncurrent investments | 144.9 | 149.2 |
Estimate of Fair Value Measurement | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0.6 | 2 |
Noncurrent investments | 57.2 | 50.6 |
Estimate of Fair Value Measurement | Other securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 24.9 | 58.6 |
Estimate of Fair Value Measurement | Other securities, noncurrent investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 171.1 | 398.6 |
Estimate of Fair Value Measurement | Marketable equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 532 | 683.6 |
Estimate of Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,196.5 | 650.4 |
Estimate of Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 30.2 | 30.8 |
Noncurrent investments | 139.3 | 146.4 |
Estimate of Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Noncurrent investments | 0 | 0 |
Estimate of Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Noncurrent investments | 0 | 0 |
Estimate of Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1) | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Noncurrent investments | 0 | 0 |
Estimate of Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Estimate of Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other securities, noncurrent investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Estimate of Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1) | Marketable equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 532 | 683.6 |
Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 4.9 | 7 |
Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Noncurrent investments | 0 | 0 |
Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 57.4 | 53.4 |
Noncurrent investments | 198.6 | 213.9 |
Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Noncurrent investments | 144.9 | 149.2 |
Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0.6 | 2 |
Noncurrent investments | 57.2 | 50.6 |
Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | Other securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 11 | 39.1 |
Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | Other securities, noncurrent investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 6.2 | 311 |
Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | Marketable equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Estimate of Fair Value Measurement | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Estimate of Fair Value Measurement | Significant Unobservable Inputs (Level 3) | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Noncurrent investments | 0 | 0 |
Estimate of Fair Value Measurement | Significant Unobservable Inputs (Level 3) | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Noncurrent investments | 0 | 0 |
Estimate of Fair Value Measurement | Significant Unobservable Inputs (Level 3) | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Noncurrent investments | 0 | 0 |
Estimate of Fair Value Measurement | Significant Unobservable Inputs (Level 3) | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Noncurrent investments | 0 | 0 |
Estimate of Fair Value Measurement | Significant Unobservable Inputs (Level 3) | Other securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 13.9 | 19.5 |
Estimate of Fair Value Measurement | Significant Unobservable Inputs (Level 3) | Other securities, noncurrent investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 164.9 | 87.6 |
Estimate of Fair Value Measurement | Significant Unobservable Inputs (Level 3) | Marketable equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | $ 0 | $ 0 |
Financial Instruments (Schedu_3
Financial Instruments (Schedule of Short-term and Long-term Classification) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Carrying Amount | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Long-Term Debt | $ (18,573.4) | $ (14,740.6) |
Carrying Amount | Commercial Paper | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Short-term commercial paper borrowings | (1,594.9) | (1,498) |
Estimate of Fair Value Measurement | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Long-Term Debt | (15,412.6) | (12,329.3) |
Estimate of Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Long-Term Debt | 0 | 0 |
Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Long-Term Debt | (15,412.6) | (12,329.3) |
Estimate of Fair Value Measurement | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Long-Term Debt | 0 | 0 |
Estimate of Fair Value Measurement | Commercial Paper | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Short-term commercial paper borrowings | (1,592.5) | (1,492) |
Estimate of Fair Value Measurement | Commercial Paper | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Short-term commercial paper borrowings | 0 | 0 |
Estimate of Fair Value Measurement | Commercial Paper | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Short-term commercial paper borrowings | (1,592.5) | (1,492) |
Estimate of Fair Value Measurement | Commercial Paper | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Short-term commercial paper borrowings | $ 0 | $ 0 |
Financial Instruments (Schedu_4
Financial Instruments (Schedule of Foreign Currency Forward Commitments) (Details) - Sep. 30, 2023 € in Millions, ¥ in Millions, ¥ in Millions, £ in Millions, $ in Millions | EUR (€) | USD ($) | CNY (¥) | GBP (£) | JPY (¥) |
Buy Euros Sell U.S. Dollars | |||||
Offsetting Assets [Line Items] | |||||
Derivative liability, notional amount | € | € 5,774.2 | ||||
Derivative asset, notional amount | $ 6,170.9 | ||||
Buy USD Sell Euro | |||||
Offsetting Assets [Line Items] | |||||
Derivative liability, notional amount | 3,420.4 | ||||
Derivative asset, notional amount | € | € 3,224.2 | ||||
Buy US Dollar Sell Chinese Yuan | |||||
Offsetting Assets [Line Items] | |||||
Derivative liability, notional amount | 240 | ||||
Derivative asset, notional amount | ¥ | ¥ 1,736.5 | ||||
Buy GBP Sell USD | |||||
Offsetting Assets [Line Items] | |||||
Derivative liability, notional amount | £ | £ 185.7 | ||||
Derivative asset, notional amount | 229.7 | ||||
Buy U.S. Dollars Sell Japanese Yen | |||||
Offsetting Assets [Line Items] | |||||
Derivative liability, notional amount | $ 200.2 | ||||
Derivative asset, notional amount | ¥ | ¥ 29,626.8 |
Financial Instruments (Schedu_5
Financial Instruments (Schedule of Effect of Risk Management) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flow hedges: | ||||
Total | $ 228.9 | $ 166.8 | $ 182.8 | $ 368 |
Hedged Fixed Rate Debt | ||||
Cash flow hedges: | ||||
Effective portion of risk-management instruments that was recognized in other comprehensive income (loss) | 183.5 | 435.1 | 62.3 | 822.8 |
Cross-currency interest rate swaps | ||||
Cash flow hedges: | ||||
Effective portion of risk-management instruments that was recognized in other comprehensive income (loss) | 28.6 | 92.1 | 9 | 171.4 |
Effective portion of risk-management instruments that was recognized in other comprehensive income (loss) | 16.4 | 19.9 | 30.5 | 38.4 |
Foreign Exchange Contract | ||||
Cash flow hedges: | ||||
Effective portion of risk-management instruments that was recognized in other comprehensive income (loss) | 217.7 | 107.8 | 199.3 | 121.4 |
Forward-starting interest rate swaps | ||||
Cash flow hedges: | ||||
Effective portion of risk-management instruments that was recognized in other comprehensive income (loss) | 84.3 | 57.5 | 141.4 | 337.7 |
Designated as Hedging Instrument | Hedged Fixed Rate Debt | ||||
Fair value hedges: | ||||
Effect from hedged fixed-rate debt | (29.9) | (62.9) | (29) | (215.7) |
Designated as Hedging Instrument | Interest Rate Contracts | ||||
Fair value hedges: | ||||
Effect from interest rate contracts | 29.9 | 62.9 | 29 | 215.7 |
Cash flow hedges: | ||||
Effective portion of losses on interest rate contracts reclassified from accumulated other comprehensive loss | 3.2 | 4.1 | 10.3 | 12.3 |
Designated as Hedging Instrument | Cross-currency interest rate swaps | ||||
Cash flow hedges: | ||||
Effective portion of losses on interest rate contracts reclassified from accumulated other comprehensive loss | 24.7 | 33.1 | (5.3) | 75 |
Not Designated as Hedging Instrument | Foreign Exchange Contract | ||||
Cash flow hedges: | ||||
Net losses on foreign currency exchange contracts not designated as hedging instruments | $ 201 | $ 129.6 | $ 177.8 | $ 280.7 |
Financial Instruments (Schedu_6
Financial Instruments (Schedule of Risk Management Instruments) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current liabilities | $ (39) | $ (39.5) |
Other noncurrent liabilities | (63.9) | (70.6) |
Carrying Amount | Foreign Exchange Contract | Not Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current liabilities | (100.5) | (21.5) |
Other receivables | 32.9 | 26.6 |
Estimate of Fair Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current liabilities | (39) | (39.5) |
Other noncurrent liabilities | (63.9) | (70.6) |
Estimate of Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current liabilities | 0 | 0 |
Other noncurrent liabilities | 0 | 0 |
Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current liabilities | 0 | 0 |
Other noncurrent liabilities | 0 | 0 |
Estimate of Fair Value Measurement | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current liabilities | (39) | (39.5) |
Other noncurrent liabilities | (63.9) | (70.6) |
Estimate of Fair Value Measurement | Foreign Exchange Contract | Not Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current liabilities | (100.5) | (21.5) |
Other receivables | 32.9 | 26.6 |
Estimate of Fair Value Measurement | Foreign Exchange Contract | Not Designated as Hedging Instrument | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current liabilities | 0 | 0 |
Other receivables | 0 | 0 |
Estimate of Fair Value Measurement | Foreign Exchange Contract | Not Designated as Hedging Instrument | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current liabilities | (100.5) | (21.5) |
Other receivables | 32.9 | 26.6 |
Estimate of Fair Value Measurement | Foreign Exchange Contract | Not Designated as Hedging Instrument | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current liabilities | 0 | 0 |
Other receivables | 0 | 0 |
Fair Value Hedging | Carrying Amount | Interest Rate Contracts | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current liabilities | (5.6) | |
Other noncurrent liabilities | (157.7) | (134.3) |
Fair Value Hedging | Estimate of Fair Value Measurement | Interest Rate Contracts | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current liabilities | (5.6) | |
Other noncurrent liabilities | (157.7) | (134.3) |
Fair Value Hedging | Estimate of Fair Value Measurement | Interest Rate Contracts | Designated as Hedging Instrument | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current liabilities | 0 | |
Other noncurrent liabilities | 0 | 0 |
Fair Value Hedging | Estimate of Fair Value Measurement | Interest Rate Contracts | Designated as Hedging Instrument | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current liabilities | (5.6) | |
Other noncurrent liabilities | (157.7) | (134.3) |
Fair Value Hedging | Estimate of Fair Value Measurement | Interest Rate Contracts | Designated as Hedging Instrument | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current liabilities | 0 | |
Other noncurrent liabilities | 0 | 0 |
Cash Flow Hedging | Carrying Amount | Interest Rate Contracts | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other noncurrent assets | 346.2 | 246 |
Other receivables | 162.9 | |
Cash Flow Hedging | Carrying Amount | Cross-currency interest rate swaps | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other noncurrent assets | 30.7 | 53.1 |
Other receivables | 58.3 | |
Cash Flow Hedging | Estimate of Fair Value Measurement | Interest Rate Contracts | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other noncurrent assets | 346.2 | 246 |
Other receivables | 162.9 | |
Cash Flow Hedging | Estimate of Fair Value Measurement | Interest Rate Contracts | Designated as Hedging Instrument | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other noncurrent assets | 0 | 0 |
Other receivables | 0 | |
Cash Flow Hedging | Estimate of Fair Value Measurement | Interest Rate Contracts | Designated as Hedging Instrument | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other noncurrent assets | 346.2 | 246 |
Other receivables | 162.9 | |
Cash Flow Hedging | Estimate of Fair Value Measurement | Interest Rate Contracts | Designated as Hedging Instrument | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other noncurrent assets | 0 | 0 |
Other receivables | 0 | |
Cash Flow Hedging | Estimate of Fair Value Measurement | Cross-currency interest rate swaps | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other noncurrent assets | 30.7 | 53.1 |
Other receivables | 58.3 | |
Cash Flow Hedging | Estimate of Fair Value Measurement | Cross-currency interest rate swaps | Designated as Hedging Instrument | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other noncurrent assets | 0 | 0 |
Other receivables | 0 | |
Cash Flow Hedging | Estimate of Fair Value Measurement | Cross-currency interest rate swaps | Designated as Hedging Instrument | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other noncurrent assets | 30.7 | 53.1 |
Other receivables | 58.3 | |
Cash Flow Hedging | Estimate of Fair Value Measurement | Cross-currency interest rate swaps | Designated as Hedging Instrument | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other noncurrent assets | 0 | 0 |
Other receivables | 0 | |
Net Investment Hedges | Carrying Amount | Cross-currency interest rate swaps | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other receivables | 71.3 | 67.6 |
Net Investment Hedges | Carrying Amount | Foreign Exchange Contract | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current liabilities | (38.3) | |
Other receivables | 106 | |
Net Investment Hedges | Estimate of Fair Value Measurement | Cross-currency interest rate swaps | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other receivables | 71.3 | 67.6 |
Net Investment Hedges | Estimate of Fair Value Measurement | Cross-currency interest rate swaps | Designated as Hedging Instrument | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other receivables | 0 | 0 |
Net Investment Hedges | Estimate of Fair Value Measurement | Cross-currency interest rate swaps | Designated as Hedging Instrument | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other receivables | 71.3 | 67.6 |
Net Investment Hedges | Estimate of Fair Value Measurement | Cross-currency interest rate swaps | Designated as Hedging Instrument | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other receivables | 0 | 0 |
Net Investment Hedges | Estimate of Fair Value Measurement | Foreign Exchange Contract | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current liabilities | (38.3) | |
Other receivables | 106 | |
Net Investment Hedges | Estimate of Fair Value Measurement | Foreign Exchange Contract | Designated as Hedging Instrument | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current liabilities | 0 | |
Other receivables | 0 | |
Net Investment Hedges | Estimate of Fair Value Measurement | Foreign Exchange Contract | Designated as Hedging Instrument | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current liabilities | (38.3) | |
Other receivables | 106 | |
Net Investment Hedges | Estimate of Fair Value Measurement | Foreign Exchange Contract | Designated as Hedging Instrument | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current liabilities | $ 0 | |
Other receivables | $ 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |||||
Effective income tax rates, percentage | 113.40% | 7.30% | 24.60% | 8.60% | |
Prepaid taxes | $ 4,080 | $ 4,080 | $ 2,370 |
Retirement Benefits (Components
Retirement Benefits (Components of Net Periodic (Benefit) Cost) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Defined Benefit Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 72.5 | $ 87.1 | $ 217.8 | $ 264.4 |
Interest cost | 162.3 | 98.9 | 486 | 299 |
Expected return on plan assets | (264) | (235.1) | (791.5) | (711.6) |
Amortization of prior service cost | 0.6 | 0.6 | 1.8 | 1.9 |
Recognized actuarial (gain) loss | 30.6 | 85.3 | 91.5 | 256.8 |
Net periodic cost | 2 | 36.8 | 5.6 | 110.5 |
Retiree Health Benefit Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 7.9 | 11.7 | 23.8 | 35 |
Interest cost | 15.3 | 9.4 | 46 | 28.4 |
Expected return on plan assets | (45.5) | (38) | (136.6) | (114.1) |
Amortization of prior service cost | (13.3) | (13.7) | (39.7) | (41.1) |
Recognized actuarial (gain) loss | (1.5) | 0.2 | (4.4) | 0.7 |
Net periodic cost | $ (37.1) | $ (30.4) | $ (110.9) | $ (91.1) |
Contingencies (Details)
Contingencies (Details) R$ in Millions, $ in Millions | 1 Months Ended | 9 Months Ended | ||||
Jun. 30, 2021 BRL (R$) patent | Jul. 31, 2019 BRL (R$) | Jul. 31, 2018 BRL (R$) | Sep. 30, 2023 BRL (R$) patent site | Sep. 30, 2023 USD ($) patent site | Oct. 31, 2019 lawsuit | |
Unfavorable Regulatory Action | ||||||
Loss Contingencies [Line Items] | ||||||
Number of sites jointly and severally liable for cleanup (fewer than) | site | 10 | 10 | ||||
Humalog, Humulin and Forteo | ||||||
Loss Contingencies [Line Items] | ||||||
Number of pending lawsuits | lawsuit | 2 | |||||
Emgality Patent Litigation | ||||||
Loss Contingencies [Line Items] | ||||||
Number of patents | patent | 2 | 3 | 3 | |||
Employee Litigation, July 2018 Ruling | Brazil | ||||||
Loss Contingencies [Line Items] | ||||||
Damages awarded, value | R$ 300 | R$ 1240 | $ 247 | |||
Employee Litigation, July 2019 Ruling | Brazil | ||||||
Loss Contingencies [Line Items] | ||||||
Damages awarded, value | R$ 100 | R$ 500 | $ 20 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) (AOCI) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 10,775.4 | |||
Other comprehensive income (loss) before reclassifications | $ (12.1) | $ (79.2) | 38 | $ (145.1) |
Net amount reclassified from accumulated other comprehensive loss | 15.9 | 71.1 | 21.7 | 192.4 |
Net other comprehensive income (loss) | 3.8 | (8.1) | 59.7 | 47.3 |
Ending balance | 11,307.4 | 11,307.4 | ||
Accumulated Other Comprehensive Loss | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (3,788.7) | (4,287.7) | (3,844.6) | (4,343.1) |
Ending balance | (3,784.9) | (4,295.8) | (3,784.9) | (4,295.8) |
Foreign Currency Translation Gains (Losses) | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (1,885.3) | (1,844.2) | (1,874.2) | (1,550.2) |
Other comprehensive income (loss) before reclassifications | (88.7) | (165.1) | (74.6) | (459.7) |
Net amount reclassified from accumulated other comprehensive loss | 0 | 0 | (25.2) | 0.6 |
Net other comprehensive income (loss) | (88.7) | (165.1) | (99.8) | (459.1) |
Ending balance | (1,974) | (2,009.3) | (1,974) | (2,009.3) |
Net Unrealized Gains (Losses) on Available-For-Sale Securities | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (33.5) | (27.9) | (37.1) | 3.7 |
Other comprehensive income (loss) before reclassifications | (13.5) | (24.9) | (11.3) | (55.5) |
Net amount reclassified from accumulated other comprehensive loss | 1.4 | 13.5 | 2.8 | 12.5 |
Net other comprehensive income (loss) | (12.1) | (11.4) | (8.5) | (43) |
Ending balance | (45.6) | (39.3) | (45.6) | (39.3) |
Defined Benefit Pension and Retiree Health Benefit Plans | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (2,058.8) | (2,443.2) | (2,062.3) | (2,583.6) |
Other comprehensive income (loss) before reclassifications | 10.5 | 47.8 | (11.9) | 72.9 |
Net amount reclassified from accumulated other comprehensive loss | 13 | 57.2 | 38.9 | 172.5 |
Net other comprehensive income (loss) | 23.5 | 105 | 27 | 245.4 |
Ending balance | (2,035.3) | (2,338.2) | (2,035.3) | (2,338.2) |
Net unrealized gains/losses on cash flow hedges | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | 188.9 | 27.6 | 129 | (213) |
Other comprehensive income (loss) before reclassifications | 79.6 | 63 | 135.8 | 297.2 |
Net amount reclassified from accumulated other comprehensive loss | 1.5 | 0.4 | 5.2 | 6.8 |
Net other comprehensive income (loss) | 81.1 | 63.4 | 141 | 304 |
Ending balance | $ 270 | $ 91 | $ 270 | $ 91 |
Other Comprehensive Income (L_4
Other Comprehensive Income (Loss) (Tax Effect) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Benefit (expense) for income taxes allocated to other comprehensive income (loss) items | $ (115.3) | $ (169.2) | $ (99.1) | $ (375.1) |
Foreign Currency Translation Gains (Losses) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Benefit (expense) for income taxes allocated to other comprehensive income (loss) items | (90.3) | (133.3) | (50.2) | (234.2) |
Net unrealized gains/losses on available-for-sale securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Benefit (expense) for income taxes allocated to other comprehensive income (loss) items | 3.5 | 3.4 | 2.5 | 13.1 |
Defined Benefit Pension and Retiree Health Benefit Plans | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Benefit (expense) for income taxes allocated to other comprehensive income (loss) items | (6.9) | (22.4) | (13.9) | (73.2) |
Net unrealized gains/losses on cash flow hedges | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Benefit (expense) for income taxes allocated to other comprehensive income (loss) items | $ (21.6) | $ (16.9) | $ (37.5) | $ (80.8) |
Other Comprehensive Income (L_5
Other Comprehensive Income (Loss) (Reclassification) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other–net, (income) expense | $ (0.1) | $ (18.7) | $ (11.1) | $ 17 |
Total before tax | 427.2 | 1,565.5 | 4,045.8 | 4,710 |
Tax benefit | (484.6) | (113.8) | (995.1) | (402.9) |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassifications, net of tax | 15.9 | 71.1 | 21.7 | 192.4 |
Amortization of retirement benefit items | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total before tax | 16.4 | 72.4 | 49.2 | 218.3 |
Tax benefit | (3.4) | (15.2) | (10.3) | (45.8) |
Total reclassifications, net of tax | 13 | 57.2 | 38.9 | 172.5 |
Prior service benefits, net | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other–net, (income) expense | (12.7) | (13.1) | (37.9) | (39.2) |
Actuarial losses, net | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other–net, (income) expense | 29.1 | 85.5 | 87.1 | 257.5 |
Other, net of tax | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other–net, (income) expense | $ 2.9 | $ 13.9 | $ (17.2) | $ 19.9 |
Other_Net, (Income) Expense (De
Other–Net, (Income) Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Nonoperating Income (Expense) [Abstract] | ||||
Interest expense | $ 124.6 | $ 81.5 | $ 347.7 | $ 247.6 |
Interest income | (48.9) | (20.1) | (129.1) | (37.3) |
Net investment losses on equity securities (Note 6) | 62.9 | 123.3 | 141.5 | 667.6 |
Retirement benefit plans | (115.5) | (92.4) | (346.9) | (280) |
Other (income) expense | 0.1 | 18.7 | 11.1 | (17) |
Other–net, (income) expense | $ 23.2 | $ 111 | $ 24.3 | $ 580.9 |