Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 31, 2024 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 1-3619 | |
Entity Registrant Name | PFIZER INC | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 13-5315170 | |
Entity Address, Address Line One | 66 Hudson Boulevard East | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10001-2192 | |
City Area Code | 212 | |
Local Phone Number | 733-2323 | |
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 | 5,666,695,064 | |
Entity Central Index Key | 0000078003 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Common Stock, $.05 par value [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock, $0.05 par value | |
Trading Symbol | PFE | |
Security Exchange Name | NYSE | |
1.000% Notes due 2027 [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.000% Notes due 2027 | |
Trading Symbol | PFE27 | |
Security Exchange Name | NYSE |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | ||
Alliance revenues | [1] | $ 2,067 | $ 1,967 | $ 4,240 | $ 4,028 |
Total revenues | 13,283 | 13,007 | 28,162 | 31,492 | |
Costs and expenses: | |||||
Cost of sales | [2] | 3,300 | 3,237 | 6,679 | 8,122 |
Selling, informational and administrative expenses | [2] | 3,717 | 3,497 | 7,212 | 6,914 |
Research and development expenses | [2] | 2,696 | 2,648 | 5,189 | 5,153 |
Acquired in-process research and development expenses | 6 | 33 | 6 | 55 | |
Amortization of intangible assets | 1,307 | 1,184 | 2,615 | 2,287 | |
Restructuring charges and certain acquisition-related costs | 1,254 | 214 | 1,356 | 222 | |
Other (income)/deductions––net | 1,107 | (75) | 1,787 | 200 | |
Income/(loss) from continuing operations before provision/(benefit) for taxes on income/(loss) | [3] | (103) | 2,269 | 3,318 | 8,539 |
Provision/(benefit) for taxes on income/(loss) | (134) | (71) | 159 | 644 | |
Income from continuing operations | 31 | 2,340 | 3,159 | 7,895 | |
Discontinued operations––net of tax | 17 | (2) | 12 | (1) | |
Net income before allocation to noncontrolling interests | 48 | 2,338 | 3,171 | 7,894 | |
Less: Net income attributable to noncontrolling interests | 7 | 11 | 15 | 24 | |
Net income attributable to Pfizer Inc. common shareholders | $ 41 | $ 2,327 | $ 3,156 | $ 7,870 | |
Earnings per common share––basic: | |||||
Income from continuing operations attributable to Pfizer Inc. common shareholders (in dollars per share) | $ 0.01 | $ 0.41 | $ 0.56 | $ 1.40 | |
Discontinued operations––net of tax (in dollars per share) | 0 | 0 | 0 | 0 | |
Net income attributable to Pfizer Inc. common shareholders (in dollars per share) | 0.01 | 0.41 | 0.56 | 1.40 | |
Earnings per common share––diluted: | |||||
Income from continuing operations attributable to Pfizer Inc. common shareholders (in dollars per share) | 0.01 | 0.41 | 0.55 | 1.38 | |
Discontinued operations––net of tax (in dollars per share) | 0 | 0 | 0 | 0 | |
Net income attributable to Pfizer Inc. common shareholders (in dollars per share) | $ 0.01 | $ 0.41 | $ 0.55 | $ 1.38 | |
Weighted-average shares--basic (in shares) | 5,666 | 5,646 | 5,662 | 5,640 | |
Weighted-average shares--diluted (in shares) | 5,696 | 5,713 | 5,696 | 5,720 | |
Product revenues | |||||
Revenues | [1] | $ 10,871 | $ 10,766 | $ 23,314 | $ 26,988 |
Royalty revenues | |||||
Revenues | [1] | $ 345 | $ 273 | $ 608 | $ 477 |
[1] See Note 1A . Exclusive of amortization of intangible assets. Income/(loss) from continuing operations before provision/(benefit) for taxes on income/(loss). As described above, in connection with the organizational changes effective in the first quarter of 2024, costs associated with R&D and medical and safety activities managed by our global ORD and PRD organizations and overhead costs associated with our manufacturing operations are now included in Biopharma’s earnings. We have reclassified $2.0 billion and $3.4 billion of net costs in the second quarter and first six months of 2023, respectively, from Other business activities to Biopharma to conform to the current period presentation. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income before allocation to noncontrolling interests | $ 48 | $ 2,338 | $ 3,171 | $ 7,894 | |
Foreign currency translation adjustments, net | (70) | 242 | 70 | 343 | |
Unrealized holding gains/(losses) on derivative financial instruments, net | 127 | 109 | 343 | 112 | |
Reclassification adjustments for (gains)/losses included in net income | [1] | (147) | (163) | (159) | 140 |
Other comprehensive income, cash flow hedge, gain (loss), before tax, total | (21) | (54) | 184 | 251 | |
Unrealized holding gains/(losses) on available-for-sale securities, net | (25) | 26 | (77) | 113 | |
Reclassification adjustments for (gains)/losses included in net income/(loss) | [2] | 100 | 16 | 86 | (493) |
Other comprehensive income (loss), available-for-sale securities, before tax, total | 74 | 42 | 9 | (379) | |
Reclassification adjustments related to amortization of prior service costs and other, net | (28) | (30) | (56) | (59) | |
Reclassification adjustments related to curtailments of prior service costs and other, net | 0 | (7) | 0 | (12) | |
Defined benefit plan, amounts recognized in other comprehensive income (loss), net prior service costs and other, before tax | (28) | (37) | (56) | (72) | |
Other comprehensive income/(loss), before tax | (44) | 193 | 207 | 143 | |
Tax provision/(benefit) on other comprehensive income/(loss) | 22 | 9 | 76 | (53) | |
Other comprehensive income/(loss) before allocation to noncontrolling interests | (67) | 184 | 131 | 196 | |
Comprehensive income/(loss) before allocation to noncontrolling interests | (19) | 2,522 | 3,302 | 8,091 | |
Less: Comprehensive income/(loss) attributable to noncontrolling interests | (2) | 8 | 1 | 18 | |
Comprehensive income/(loss) attributable to Pfizer Inc. | $ (17) | $ 2,514 | $ 3,302 | $ 8,072 | |
[1] Reclassified into Other (income)/deductions—net and Cost of sales. See Note 7E . Reclassified into Other (income)/deductions—net. |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | |
Assets | |||
Cash and cash equivalents | $ 1,052 | $ 2,853 | |
Short-term investments | 6,048 | 9,837 | |
Trade accounts receivable, less allowance for doubtful accounts: 2024—$468; 2023—$470 | 11,393 | 11,566 | |
Inventories | [1] | 11,447 | 10,189 |
Current tax assets | 3,694 | 3,978 | |
Other current assets | 4,190 | 4,911 | |
Total current assets | 37,825 | 43,333 | |
Equity-method investments | 8,029 | 11,637 | |
Long-term investments | 3,119 | 3,731 | |
Property, plant and equipment, less accumulated depreciation: 2024—$16,572; 2023—$16,045 | 18,957 | 18,940 | |
Identifiable intangible assets | [2] | 61,240 | 64,900 |
Goodwill | [3] | 68,445 | 67,783 |
Noncurrent deferred tax assets and other noncurrent tax assets | 7,867 | 3,706 | |
Other noncurrent assets | 10,710 | 12,471 | |
Total assets | 216,193 | 226,501 | |
Liabilities and Equity | |||
Short-term borrowings, including current portion of long-term debt: 2024—$3,745; 2023—$2,254 | 11,944 | 10,350 | |
Trade accounts payable | 5,106 | 6,710 | |
Dividends payable | 2,380 | 2,372 | |
Income taxes payable | 2,884 | 2,349 | |
Accrued compensation and related items | 2,566 | 2,776 | |
Deferred revenues | 2,528 | 2,700 | |
Other current liabilities | 16,410 | 20,537 | |
Total current liabilities | 43,819 | 47,794 | |
Long-term debt | 57,506 | 61,538 | |
Pension and postretirement benefit obligations | 2,040 | 2,167 | |
Noncurrent deferred tax liabilities | 2,227 | 640 | |
Other taxes payable | 6,532 | 8,534 | |
Other noncurrent liabilities | 16,095 | 16,539 | |
Total liabilities | 128,218 | 137,213 | |
Commitments and Contingencies | |||
Common stock | 480 | 478 | |
Additional paid-in capital | 93,197 | 92,631 | |
Treasury stock | (114,757) | (114,487) | |
Retained earnings | 116,596 | 118,353 | |
Accumulated other comprehensive loss | (7,816) | (7,961) | |
Total Pfizer Inc. shareholders’ equity | 87,700 | 89,014 | |
Equity attributable to noncontrolling interests | 275 | 274 | |
Total equity | 87,975 | 89,288 | |
Total liabilities and equity | $ 216,193 | $ 226,501 | |
[1] The increase from December 31, 2023 reflects higher inventory levels for certain products mainly for supply recovery and network strategy. The decrease is primarily due to amortization expense of $2.6 billion, measurement period adjustments related to our acquisition of Seagen of $625 million (see Note 2A ) and impairments of $349 million (see Note 4 ). All goodwill is assigned within the Biopharma reportable segment. As a result of the organizational changes to the commercial structure within the Biopharma operating segment effective in the first quarter of 2024 (see Note 13A ), our goodwill is required to be reallocated amongst impacted reporting units. The allocation of goodwill is a complex process that requires, among other things, that we determine the fair value of each reporting unit under our old and new organizational structure and the portions being transferred. Therefore, we have not yet completed the allocation, but it will be completed in the current year. |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 468 | $ 470 |
Property, plant and equipment, accumulated depreciation | 16,572 | 16,045 |
Current portion of long-term debt | $ 3,745 | $ 2,254 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED) - USD ($) shares in Millions, $ in Millions | Total | Shareholders' Equity [Member] | Common Stock [Member] | Add'l Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Accum. Other Comp. Loss [Member] | Noncontrolling Interests [Member] | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning balance (in shares) | 9,519 | ||||||||
Beginning balance at Dec. 31, 2022 | $ 95,916 | $ 95,661 | $ 476 | $ 91,802 | $ (113,969) | $ 125,656 | $ (8,304) | $ 256 | |
Beginning balance (in shares) at Dec. 31, 2022 | (3,903) | ||||||||
Ending balance (in shares) at Apr. 02, 2023 | 9,560 | ||||||||
Ending balance at Apr. 02, 2023 | 101,236 | 100,970 | $ 478 | 92,153 | $ (114,473) | 131,101 | (8,289) | 266 | |
Ending balance (in shares) at Apr. 02, 2023 | (3,915) | ||||||||
Beginning balance at Dec. 31, 2022 | 95,916 | 95,661 | $ 476 | 91,802 | $ (113,969) | 125,656 | (8,304) | 256 | |
Beginning balance (in shares) at Dec. 31, 2022 | (3,903) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income/(loss) | 7,894 | 7,870 | 7,870 | 24 | |||||
Other comprehensive income/(loss), net of tax | 196 | 202 | 202 | (6) | |||||
Common stock | (4,630) | (4,630) | (4,630) | ||||||
Share-based payment transactions (in shares) | 42 | (12) | |||||||
Share-based payment transactions | (85) | (85) | $ 2 | 527 | $ (512) | (101) | |||
Other | 0 | 0 | 0 | 0 | 0 | ||||
Ending balance (in shares) at Jul. 02, 2023 | 9,561 | ||||||||
Ending balance at Jul. 02, 2023 | 99,293 | 99,019 | $ 478 | 92,329 | $ (114,482) | 128,796 | (8,102) | 274 | |
Ending balance (in shares) at Jul. 02, 2023 | (3,916) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning balance (in shares) | 9,560 | ||||||||
Beginning balance at Apr. 02, 2023 | 101,236 | 100,970 | $ 478 | 92,153 | $ (114,473) | 131,101 | (8,289) | 266 | |
Beginning balance (in shares) at Apr. 02, 2023 | (3,915) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income/(loss) | 2,338 | 2,327 | 2,327 | 11 | |||||
Other comprehensive income/(loss), net of tax | 184 | 187 | 187 | (3) | |||||
Common stock | (4,630) | (4,630) | (4,630) | ||||||
Share-based payment transactions (in shares) | 1 | 0 | |||||||
Share-based payment transactions | 164 | 164 | $ 0 | 176 | $ (8) | (4) | |||
Other | 0 | 0 | 0 | 0 | 0 | ||||
Ending balance (in shares) at Jul. 02, 2023 | 9,561 | ||||||||
Ending balance at Jul. 02, 2023 | 99,293 | 99,019 | $ 478 | 92,329 | $ (114,482) | 128,796 | (8,102) | 274 | |
Ending balance (in shares) at Jul. 02, 2023 | (3,916) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning balance (in shares) | 9,561 | ||||||||
Beginning balance (in shares) | 9,562 | ||||||||
Beginning balance at Dec. 31, 2023 | 89,288 | 89,014 | $ 478 | 92,631 | $ (114,487) | 118,353 | (7,961) | 274 | |
Beginning balance (in shares) at Dec. 31, 2023 | (3,916) | ||||||||
Ending balance (in shares) at Mar. 31, 2024 | 9,592 | ||||||||
Ending balance at Mar. 31, 2024 | 92,558 | 92,282 | $ 480 | 92,997 | $ (114,755) | 121,318 | (7,758) | 276 | |
Ending balance (in shares) at Mar. 31, 2024 | (3,925) | ||||||||
Beginning balance at Dec. 31, 2023 | 89,288 | 89,014 | $ 478 | 92,631 | $ (114,487) | 118,353 | (7,961) | 274 | |
Beginning balance (in shares) at Dec. 31, 2023 | (3,916) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income/(loss) | 3,171 | 3,156 | 3,156 | 15 | |||||
Other comprehensive income/(loss), net of tax | 131 | 145 | 145 | [1] | (14) | ||||
Common stock | (4,760) | (4,760) | (4,760) | ||||||
Share-based payment transactions (in shares) | 30 | (10) | |||||||
Share-based payment transactions | 144 | 144 | $ 1 | 566 | $ (270) | (153) | |||
Other | 0 | 0 | |||||||
Ending balance (in shares) at Jun. 30, 2024 | 9,592 | ||||||||
Ending balance at Jun. 30, 2024 | 87,975 | 87,700 | $ 480 | 93,197 | $ (114,757) | 116,596 | (7,816) | 275 | |
Ending balance (in shares) at Jun. 30, 2024 | (3,925) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning balance (in shares) | 9,592 | ||||||||
Beginning balance at Mar. 31, 2024 | 92,558 | 92,282 | $ 480 | 92,997 | $ (114,755) | 121,318 | (7,758) | 276 | |
Beginning balance (in shares) at Mar. 31, 2024 | (3,925) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income/(loss) | 48 | 41 | 41 | 7 | |||||
Other comprehensive income/(loss), net of tax | (67) | (58) | (58) | (9) | |||||
Common stock | (4,760) | (4,760) | (4,760) | ||||||
Share-based payment transactions (in shares) | 0 | 0 | |||||||
Share-based payment transactions | 196 | 196 | $ 0 | 200 | $ (2) | (2) | |||
Other | 0 | 0 | 0 | 0 | |||||
Ending balance (in shares) at Jun. 30, 2024 | 9,592 | ||||||||
Ending balance at Jun. 30, 2024 | $ 87,975 | $ 87,700 | $ 480 | $ 93,197 | $ (114,757) | $ 116,596 | $ (7,816) | $ 275 | |
Ending balance (in shares) at Jun. 30, 2024 | (3,925) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning balance (in shares) | 9,592 | ||||||||
[1] Foreign currency translation adjustments include net gains related to the impact of our net investment hedging program and net losses related to our equity-method investment in Haleon (see Note 2B ). |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED) (PARENTHETICAL) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends declared per share (in dollars per share) | $ 0.84 | $ 0.82 | $ 0.84 | $ 0.82 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | Dec. 31, 2023 | ||
Operating Activities | ||||||
Net income before allocation to noncontrolling interests | $ 48 | $ 2,338 | $ 3,171 | $ 7,894 | ||
Discontinued operations––net of tax | 17 | (2) | 12 | (1) | ||
Net income from continuing operations before allocation to noncontrolling interests | 31 | 2,340 | 3,159 | 7,895 | ||
Adjustments to reconcile net income from continuing operations before allocation to noncontrolling interests to net cash provided by/(used in) operating activities: | ||||||
Depreciation and amortization | 3,467 | 3,060 | ||||
Asset write-offs and impairments | 431 | 327 | ||||
Deferred taxes | (1,224) | (1,471) | ||||
Share-based compensation expense | 426 | 253 | ||||
Benefit plan contributions in excess of expense/income | (338) | (322) | ||||
Other adjustments, net | 260 | (317) | ||||
Other changes in assets and liabilities, net of acquisitions and divestitures | (6,871) | (9,423) | ||||
Net cash provided by/(used in) operating activities | (691) | 4 | ||||
Investing Activities | ||||||
Purchases of property, plant and equipment | (1,341) | (2,053) | ||||
Purchases of short-term investments | (1,254) | (21,006) | ||||
Proceeds from redemptions/sales of short-term investments | 1,712 | 12,594 | ||||
Net (purchases of)/proceeds from redemptions/sales of short-term investments with original maturities of three months or less | 3,538 | (11,217) | ||||
Purchases of long-term investments | (108) | (92) | ||||
Proceeds from redemptions/sales of long-term investments | 312 | 172 | ||||
Proceeds from partial sale of investment in Haleon | [1] | 3,491 | 0 | |||
Acquisition of business, net of cash acquired | 0 | (25) | ||||
Other investing activities, net | (18) | (543) | ||||
Net cash provided by/(used in) investing activities | 6,332 | (22,170) | ||||
Financing Activities | ||||||
Proceeds from short-term borrowings | 6,014 | 14 | ||||
Payments on short-term borrowings | (4,852) | 0 | ||||
Net (payments on)/proceeds from short-term borrowings with original maturities of three months or less | (1,101) | 22 | ||||
Proceeds from issuance of long-term debt | 0 | 30,831 | ||||
Payments on long-term debt | (2,250) | (1,269) | ||||
Cash dividends paid | (4,752) | (4,618) | ||||
Other financing activities, net | (449) | (576) | ||||
Net cash provided by/(used in) financing activities | (7,390) | 24,403 | ||||
Effect of exchange-rate changes on cash and cash equivalents and restricted cash and cash equivalents | (46) | (7) | ||||
Net increase/(decrease) in cash and cash equivalents and restricted cash and cash equivalents | (1,794) | 2,229 | ||||
Cash and cash equivalents and restricted cash and cash equivalents, at beginning of period | 2,917 | 468 | $ 468 | |||
Cash and cash equivalents and restricted cash and cash equivalents, at end of period | $ 1,123 | $ 2,698 | 1,123 | 2,698 | 2,917 | |
Cash paid/(received) during the period for: | ||||||
Income taxes | 2,686 | 2,025 | $ 3,100 | |||
Interest paid | 1,553 | 821 | ||||
Interest rate hedges | $ (2) | $ 31 | ||||
[1]See Note 2B . |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies A. Basis of Presentation We prepared these condensed consolidated financial statements in conformity with U.S. GAAP, consistent in all material respects with those applied in our 2023 Form 10-K. As permitted under the SEC requirements for interim reporting, certain footnotes or other financial information have been condensed or omitted. These financial statements include all normal and recurring adjustments that are considered necessary for the fair statement of results for the interim periods presented. The information included in this Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in our 2023 Form 10-K . Revenues, expenses, assets and liabilities can vary during each quarter of the year. Therefore, the results and trends in these interim financial statements may not be representative of those for the full year. Pfizer’s fiscal quarter-end for subsidiaries operating outside the U.S. is as of and for the three and six months ended May 26, 2024 and May 28, 2023, and for U.S. subsidiaries is as of and for the three and six months ended June 30, 2024 and July 2, 2023. We manage our commercial operations through three operating segments, each led by a single manager: Biopharma, PC1 and Pfizer Ignite. Biopharma is the only reportable segment. See Note 13A . We have made certain reclassification adjustments to conform prior-period amounts to the current presentation for: • in the first quarter of 2024, we reclassified royalty income (substantially all of which is related to Biopharma) from Other (income)/deductions––net and began presenting Royalty revenues as a separate line item within Total revenues in our consolidated statements of operations, and reclassified the associated royalty receivables from Other current assets to Trade accounts receivable, less allowance for doubtful accounts in our consolidated balance sheet; • in the fourth quarter of 2023, we began presenting Product revenues and Alliance revenues as separate line items within Total revenues in our consolidated statements of operations; and • segment reporting and geographic information in connection with the commercial reorganization that went into effect on January 1, 2024 (see Note 13 ). Business development activities, including the December 2023 acquisition of Seagen, impacted financial results in the periods presented. See Note 2 below, as well as Notes 1A and 2 in our 2023 Form 10-K. B. New Accounting Standard Adopted in 2024 On January 1, 2024, we adopted a new accounting standard which clarifies that contractual sale restrictions are not considered in measuring equity securities at fair value. The new guidance is consistent with our existing policy; therefore, it had no impact on our consolidated financial statements. C. Revenues and Trade Accounts Receivable Customers–– Our prescription biopharmaceutical products, with the exception of Paxlovid in 2023, are sold principally to wholesalers, but we also sell directly to retailers, hospitals, clinics, government agencies and pharmacies. We principally sold Paxlovid globally to government agencies in 2023. Our vaccines in the U.S. are primarily sold directly to the federal government (including the CDC), wholesalers, individual provider offices, retail pharmacies and integrated delivery systems. Our vaccines outside the U.S. are primarily sold to government and non-government institutions. Certain products in our portfolio are subject to seasonality of demand and Paxlovid revenues trend with infection rates. Deductions from Revenues–– Our accruals for Medicare, Medicaid and related state program and performance-based contract rebates, chargebacks, sales allowances and sales returns and cash discounts are as follows: (MILLIONS) June 30, December 31, 2023 Reserve against Trade accounts receivable, less allowance for doubtful accounts $ 1,578 $ 1,770 Other current liabilities : Accrued rebates 6,726 5,546 Other accruals 529 902 Other noncurrent liabilities 569 796 Total accrued rebates and other sales-related accruals $ 9,401 $ 9,014 Trade Accounts Receivable–– Trade accounts receivable are stated at their net realizable value. The allowance for credit losses reflects our best estimate of expected credit losses of the receivables portfolio determined on the basis of historical experience, current information, and forecasts of future economic conditions. In developing the estimate for expected credit losses, trade accounts receivables are segmented into pools of assets depending on market (U.S. versus international), delinquency status, and customer type (high risk versus low risk and government versus non-government), and fixed reserve percentages are established for each pool of trade accounts receivables. In determining the reserve percentages for each pool of trade accounts receivables, we considered our historical experience with certain customers and customer types, regulatory and legal environments, country and political risk, and other relevant current and future forecasted macroeconomic factors. When management becomes aware of certain customer-specific factors that impact credit risk, specific allowances for these known troubled accounts are recorded. During the three and six months ended June 30, 2024 and July 2, 2023, additions to the allowance for credit losses, write-offs and recoveries of customer receivables were not material to our condensed consolidated financial statements. For additional information on our trade accounts receivable, see Note 1G in our 2023 Form 10-K. |
Acquisition and Equity-Method I
Acquisition and Equity-Method Investment | 6 Months Ended |
Jun. 30, 2024 | |
Business Combinations and Equity Method Investments [Abstract] | |
Acquisition and Equity-Method Investment | Acquisition and Equity-Method Investment A. Acquisition Seagen–– On December 14, 2023 (the acquisition date), we acquired Seagen, a global biotechnology company that discovers, develops and commercializes transformative cancer medicines, for $229 per share in cash. The total fair value of the consideration transferred was $44.2 billion ($43.4 billion, net of cash acquired). The combination of certain Pfizer and Seagen entities may be pending in various jurisdictions and integration is subject to completion of various local legal and regulatory steps. The following table summarizes the provisional amounts recognized for assets acquired and liabilities assumed as of the acquisition date, including adjustments made in the first six months of 2024 (measurement period adjustments) with a corresponding change to goodwill. The estimated values are not yet finalized (see below) and are subject to change, which could be significant. We will finalize the amounts recognized as soon as possible but no later than one year from the acquisition date. (MILLIONS) Amounts Recognized as of Acquisition Date (as previously reported as of December 31, 2023) Measurement Period Adjustments (a) Amounts Recognized as of Acquisition Date (as adjusted) Working capital, excluding inventories $ 736 $ (184) $ 552 Inventories (b) 4,195 (891) 3,304 Property, plant and equipment 524 (233) 291 Identifiable intangible assets, excluding in-process research and development (c) 7,970 (575) 7,395 In-process research and development 20,800 (50) 20,750 Other noncurrent assets 174 (106) 67 Net income tax accounts (6,123) 1,313 (4,810) Other noncurrent liabilities (167) 50 (117) Total identifiable net assets 28,108 (677) 27,431 Goodwill 16,126 677 16,803 Net assets acquired/total consideration transferred $ 44,234 $ — $ 44,234 (a) The changes in the estimated fair values are primarily to better reflect market participant assumptions about facts and circumstances existing as of the acquisition date. The measurement period adjustments did not result from intervening events subsequent to the acquisition date. (b) As adjusted, comprised of $1.2 billion current inventories and $2.1 billion noncurrent inventories. (c) As adjusted, comprised mainly of $6.9 billion of finite-lived developed technology rights with an estimated weighted-average life of approximately 18 years. The measurement period adjustments did not have a material impact on our earnings. The following items are subject to change: • Amounts for certain balances included in working capital (excluding inventories), and certain legal contingencies, pending receipt of certain information that could affect provisional amounts recorded. We do not believe any adjustments for legal contingencies will have a material impact on our consolidated financial statements. • Amounts for identifiable intangible assets, inventories, contractual commitments, PP&E, and operating lease right-of-use assets and liabilities, pending finalization of valuation efforts and the completion of certain physical inventory counts. • Amounts for income tax assets, receivables and liabilities, pending the filing of Seagen’s pre-acquisition tax returns and the receipt of information, including but not limited to that from taxing authorities, which may change certain estimates and assumptions used. The following table provides unaudited U.S. GAAP supplemental pro forma information as if the acquisition of Seagen had occurred on January 1, 2022: Unaudited Supplemental Pro Forma Consolidated Results Three Months Ended Six Months Ended (MILLIONS, EXCEPT PER SHARE DATA) July 2, July 2, Revenues $ 13,611 $ 32,616 Net income attributable to Pfizer Inc. common shareholders 1,389 6,040 Diluted earnings per share attributable to Pfizer Inc. common shareholders 0.24 1.06 The unaudited supplemental pro forma consolidated results do not purport to reflect what the combined company’s results of operations would have been had the acquisition occurred on January 1, 2022, nor do they project the future results of operations of the combined company or reflect the expected realization of any cost savings associated with the acquisition. The actual results of operations of the combined company may differ significantly from the pro forma adjustments reflected here due to many factors. The unaudited supplemental pro forma financial information includes various assumptions, including those related to the preliminary purchase price allocation of the assets acquired and the liabilities assumed from Seagen. The historical U.S. GAAP financial information of Pfizer and Seagen was adjusted, primarily for the following pre-tax adjustments for the three and six months ended July 2, 2023: • Additional amortization expense of approximately $143 million and $285 million, respectively, related to the preliminary estimate of the fair value of identifiable intangible assets acquired. • Additional expense related to the preliminary estimate of the fair value adjustment to acquisition-date inventory estimated to have been sold of approximately $224 million and $449 million, respectively. • Additional estimated interest expense of approximately $303 million and $791 million, respectively, related to the debt issued by Pfizer and the commercial paper borrowings to partially finance the acquisition. • Elimination of interest income of approximately $263 million and $330 million, respectively, associated with money market funds under the assumption that a portion of these funds would have been liquidated to partially fund the acquisition. The above adjustments were then adjusted for the applicable tax impact using an estimated weighted-average statutory tax rate applied to the applicable pro forma adjustments. B. Equity-Method Investment Haleon–– We owned 32% of Haleon as of December 31, 2023. In March 2024, we sold approximately 30% of our investment in Haleon through the sale of 791 million ordinary shares in a global public offering, and the sale of 102 million ordinary shares directly to Haleon for total consideration of $3.5 billion. We recognized a gain on the sale of our Haleon shares of $150 million during the first quarter of 2024 in Other (income)/deductions––net (see Note 4 ). After the share sale, we owned approximately 23% of the outstanding voting shares of Haleon as of June 30, 2024. The fair value of our investment in Haleon as of June 30, 2024, based on quoted market prices of Haleon stock, was $8.4 billion. Haleon is a foreign investee whose reporting currency is the U.K. pound, and therefore we translate its financial statements into U.S. dollars and recognize the impact of foreign currency translation adjustments in the carrying value of our investment and in other comprehensive income. We record our share of earnings from Haleon on a quarterly basis on a one-quarter lag in Other (income)/deductions––net . The following table summarizes the change in the carrying value of our investment in Haleon: Three Months Ended Six Months Ended (MILLIONS) June 30, July 2, June 30, July 2, Beginning carrying value reported in Equity-method investments $ 7,922 $ 10,980 $ 11,451 $ 10,824 Carrying value of shares sold — — (3,312) — Dividends (157) (88) (157) (88) Currency translation adjustments and other (a) 1 185 (130) 274 Basis difference adjustments and amortization (b), (c) (1) — (101) (1) Pfizer share of Haleon investee capital transaction (b), (d) (91) — (91) — Pfizer share of Haleon earnings (b) 121 151 136 219 Ending carrying value reported in Equity-method investments $ 7,796 $ 11,228 $ 7,796 $ 11,228 (a) See Note 6 . (b) Included in Other (income)/deductions –– net . (c) Adjustments in the six months ended June 30, 2024 are associated with (i) the impact of Haleon’s brand divestitures and impairments of intangible assets and (ii) changes in Haleon’s tax rates on intangible asset-related deferred tax liabilities. See Note 4 . (d) Amounts for the three and six months ended June 30, 2024 relate to Pfizer’s share of an investee capital transaction recognized by Haleon for treasury stock Haleon purchased in the first quarter of 2024. Summarized financial information for Haleon for the three and six months ending March 31, 2024, the most recent period available, and for the three and six months ending March 31, 2023, is as follows: Three Months Ended Six Months Ended (MILLIONS) March 31, March 31, March 31, March 31, Net sales $ 3,699 $ 3,627 $ 7,133 $ 6,889 Cost of sales (1,370) (1,392) (2,966) (2,888) Gross profit $ 2,329 $ 2,235 $ 4,167 $ 4,001 Income from continuing operations 559 504 618 730 Net income 559 504 618 730 Income attributable to shareholders 536 473 583 684 |
Restructuring Charges and Other
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives | 6 Months Ended |
Jun. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives | Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives A. Realigning our Cost Base Program In the fourth quarter of 2023, we announced that we launched a multi-year, enterprise-wide cost realignment program that aims to realign our costs with our longer-term revenue expectations. We expect costs associated with this multi-year effort to continue primarily through 2024 and to total approximately $2.3 billion, primarily representing cash expenditures for severance and implementation costs, of which $1.7 billion is associated with our Biopharma segment. From the start of this program through June 30, 2024, we incurred costs under this program of $1.5 billion, of which $1.2 billion is associated with our Biopharma segment (substantially all of which represents restructuring charges). B. Manufacturing Optimization Program In the second quarter of 2024, we announced that we launched a multi-year, multi-phased program to reduce our costs of goods sold, which is expected to include operational efficiencies, network structure changes, and product portfolio enhancements. The first phase of this program is focused on operational efficiencies and we expect costs for this first phase to total approximately $1.7 billion, primarily representing cash expenditures for severance and implementation costs, all of which is associated with our Biopharma segment. These costs will be recorded primarily in 2024, with cash outlays expected primarily in 2025 and 2026. From the start of this program through June 30, 2024, we incurred costs under this program of $1.3 billion, all of which is associated with our Biopharma segment and substantially all of which represents restructuring charges. C. Key Activities The following summarizes costs and credits for acquisitions and cost-reduction/productivity initiatives: Three Months Ended Six Months Ended (MILLIONS) June 30, July 2, June 30, July 2, Restructuring charges/(credits): Employee terminations $ 1,014 $ 96 $ 984 $ 61 Asset impairments 41 15 66 4 Exit costs 49 27 63 29 Restructuring charges/(credits) (a) 1,104 138 1,114 94 Transaction costs (b) — 8 5 8 Integration costs and other (c) 150 68 237 120 Restructuring charges and certain acquisition-related costs 1,254 214 1,356 222 Net periodic benefit costs/(credits) recorded in Other (income)/deductions––net 2 (2) 5 (7) Additional depreciation––asset restructuring recorded in our condensed consolidated statements of operations as follows (d): Cost of sales 1 4 5 22 Selling, informational and administrative expenses 3 — 3 — Total additional depreciation––asset restructuring 4 4 8 23 Implementation costs recorded in our condensed consolidated statements of operations as follows (e) : Cost of sales 49 13 65 27 Selling, informational and administrative expenses 36 67 65 126 Research and development expenses 20 19 33 30 Total implementation costs 105 98 163 183 Total costs associated with acquisitions and cost-reduction/productivity initiatives $ 1,364 $ 313 $ 1,532 $ 420 (a) Primarily represents cost-reduction initiatives. Amounts associated with our Biopharma segment: charges of $1.1 billion for both the three and six months ended June 30, 2024 (including charges of $1.3 billion for our Manufacturing Optimization Program for both periods presented and credits of $113 million for the three months and $199 million for the six months ended June 30, 2024 for our Realigning our Cost Base Program). Amounts associated with our Biopharma segment for the three and six months ended July 2, 2023 were not material. (b) Represents external costs for banking, legal, accounting and other similar services. (c) Represents external, incremental costs directly related to integrating acquired businesses, such as expenditures for consulting and the integration of systems and processes, and certain other qualifying costs. (d) Represents the impact of changes in the estimated useful lives of assets involved in restructuring actions. (e) Represents external, incremental costs directly related to implementing our non-acquisition-related cost-reduction/productivity initiatives. The following summarizes the components and changes in restructuring accruals: (MILLIONS) Employee Asset Exit Costs Accrual Balance, December 31, 2023 (a) $ 1,978 $ — $ 11 $ 1,988 Provision/(credit) 984 66 63 1,114 Utilization and other (b) (592) (66) (45) (703) Balance, June 30, 2024 (c) $ 2,370 $ — $ 29 $ 2,399 (a) Included in Other current liabilities ($1.3 billion) and Other noncurrent liabilities ($663 million). (b) Other activity includes adjustments for foreign currency translation that are not material to our condensed consolidated financial statements. (c) Included in Other current liabilities ($1.0 billion) and Other noncurrent liabilities ($1.4 billion). |
Other (Income)_Deductions_Net
Other (Income)/Deductions—Net | 6 Months Ended |
Jun. 30, 2024 | |
Other Income and Expenses [Abstract] | |
Other (Income)/Deductions—Net | Other (Income)/Deductions—Net Components of Other (income)/deductions––net include: Three Months Ended Six Months Ended (MILLIONS) June 30, July 2, June 30, July 2, Interest income $ (130) $ (316) $ (259) $ (493) Interest expense 778 508 1,568 826 Net interest expense (a) 648 192 1,310 333 Net (gains)/losses recognized during the period on equity securities 342 (135) 317 316 Income from collaborations, out-licensing arrangements and sales of compound/product rights (22) (7) (24) (74) Net periodic benefit costs/(credits) other than service costs (106) (88) (209) (168) Certain legal matters, net (b) 169 139 377 175 Certain asset impairments (c) 240 — 349 264 Haleon equity method (income)/loss (d) (40) (156) 48 (224) Other, net (e) (124) (20) (381) (423) Other (income)/deductions––net $ 1,107 $ (75) $ 1,787 $ 200 (a) The increase in net interest expense in the second quarter and first six months of 2024 reflects (i) higher interest expense driven by our $31 billion aggregate principal amount of senior unsecured notes issued in May 2023, as well as $8 billion of commercial paper issued in the fourth quarter of 2023 as part of the financing for our acquisition of Seagen and (ii) a decrease in interest income due to lower investment balances after completion of our $43.4 billion Seagen acquisition in December 2023. (b) The second quarter and first six months of 2024 primarily include certain product liability expenses related to products discontinued and/or divested by Pfizer. The second quarter and first six months of 2023 primarily included certain product liability and other legal expenses related to products discontinued and/or divested by Pfizer. (c) The second quarter and first six months of 2024 include a $240 million intangible asset impairment charge, associated with our Biopharma segment that represents IPR&D related to a Phase 3 study for the treatment of DMD, which reflects unfavorable clinical trial results. The first six months of 2023 primarily represented intangible asset impairment charges, including (i) $128 million associated with Other business activities, related to IPR&D and developed technology rights for acquired software assets and reflected unfavorable pivotal trial results and updated commercial forecasts, and (ii) $120 million associated with our Biopharma segment resulting from the discontinuation of a study related to an out-licensed IPR&D asset for the treatment of prostate cancer. (d) See Note 2B . (e) The second quarter of 2024 primarily includes, among other things, dividend income of $74 million from our investment in ViiV. The first six months of 2024 includes, among other things, a $150 million gain on the partial sale of our investment in Haleon and dividend income of $135 million from our investment in ViiV. The first six months of 2023 primarily included, among other things, dividend income of $211 million from our investment in Nimbus resulting from Takeda’s acquisition of Nimbus’s oral, selective allosteric tyrosine kinase 2 (TYK2) inhibitor program subsidiary, and $183 million from our investment in ViiV. Additional information about the intangible assets that were impaired during 2024 follows: Six Months Ended Fair Value (a) June 30, 2024 (MILLIONS) Amount Level 1 Level 2 Level 3 Impairment Intangible assets–– IPR&D (b) $ — $ — — $ — $ 240 Intangible assets––Developed technology rights (b) 102 — — 102 109 Total $ 102 $ — $ — $ 102 $ 349 (a) The fair value amount is presented as of the date of impairment, as this asset is not measured at fair value on a recurring basis. See also Note 1E in our 2023 Form 10-K . (b) Reflects intangible assets written down to fair value in 2024. Fair value was determined using the income approach, specifically the multi-period excess earnings method, also known as the discounted cash flow method. We started with a forecast of all the expected net cash flows for the asset and then applied an asset-specific discount rate to arrive at a net present value amount. Some of the more significant estimates and assumptions inherent in this approach include: the amount and timing of the projected net cash flows, which includes the expected impact of competitive, legal and/or regulatory forces on the product; the discount rate, which seeks to reflect the various risks inherent in the projected cash flows; and the tax rate, which seeks to incorporate the geographic diversity of the projected cash flows. |
Tax Matters
Tax Matters | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Tax Matters | Tax Matters A. Taxes on Income from Continuing Operations Our effective tax rate for continuing operations was 130.2% for the second quarter of 2024, compared to (3.1)% for the second quarter of 2023, and was 4.8% for the first six months of 2024, compared to 7.5% for the first six months of 2023. The increase in the effective tax rate for the second quarter of 2024, compared to the second quarter of 2023, was primarily due to the non-recurrence of tax benefits related to global income tax resolutions in multiple tax jurisdictions spanning multiple tax years in the second quarter of 2023, partially offset by a favorable change in the jurisdictional mix of earnings in the second quarter of 2024. We elected, with the filing of our 2018 U.S. Federal Consolidated Income Tax Return, to pay our initial estimated $15 billion repatriation tax liability on accumulated post-1986 foreign earnings over eight years through 2026. The sixth annual installment was paid by its April 15, 2024 due date. The seventh annual installment is due April 15, 2025 and is reported in current Income taxes payable as of June 30, 2024. The remaining liability is reported in noncurrent Other taxes payable. Our obligations may vary as a result of changes in our uncertain tax positions and/or availability of attributes such as foreign tax and other credit carryforwards. For the year ended December 31, 2023, our cash paid for income taxes, net of refunds, was $3.1 billion, of which $1.9 billion was paid in the U.S. B. Tax Contingencies We are subject to income tax in many jurisdictions, and a certain degree of estimation is required in recording the assets and liabilities related to income taxes. All of our tax positions are subject to audit by the local taxing authorities in each tax jurisdiction. These tax audits can involve complex issues, interpretations and judgments and the resolution of matters may span multiple years, particularly if subject to negotiation or litigation. The U.S. is one of our major tax jurisdictions, and we are regularly audited by the IRS. With respect to Pfizer, tax years 2016-2018 are under audit. Tax years 2019-2024 are open but not under audit. All other tax years are closed. In addition to the open audit years in the U.S., we have open audit years and certain related audits, appeals and investigations in certain major international tax jurisdictions dating back to 2012. See Note 5D in our 2023 Form 10-K. C. Tax Provision/(Benefit) on Other Comprehensive Income/(Loss) Components of Tax provision/(benefit) on other comprehensive income/(loss) include: Three Months Ended Six Months Ended (MILLIONS) June 30, July 2, June 30, July 2, Foreign currency translation adjustments, net (a) $ 18 $ 20 $ 42 $ (5) Unrealized holding gains/(losses) on derivative financial instruments, net 26 25 70 28 Reclassification adjustments for (gains)/losses included in net income (23) (33) (26) (12) 3 (8) 44 16 Unrealized holding gains/(losses) on available-for-sale securities, net (3) 3 (9) 14 Reclassification adjustments for (gains)/losses included in net income 12 2 11 (62) 9 5 1 (47) Reclassification adjustments related to amortization of prior service costs and other, net (9) (7) (13) (14) Reclassification adjustments related to curtailments of prior service costs and other, net 1 (1) 1 (3) (7) (8) (12) (17) Tax provision/(benefit) on other comprehensive income/(loss) $ 22 $ 9 $ 76 $ (53) (a) Taxes are not provided for foreign currency translation adjustments relating to investments in international subsidiaries that we intend to hold indefinitely. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss, Excluding Noncontrolling Interests | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss, Excluding Noncontrolling Interests | Accumulated Other Comprehensive Loss, Excluding Noncontrolling Interests The following summarizes the changes, net of tax, in Accumulated other comprehensive loss : Net Unrealized Gains/(Losses) Benefit Plans (MILLIONS) Foreign Currency Translation Adjustments (a) Derivative Financial Instruments Available-For-Sale Securities Prior Service (Costs)/Credits and Other Accumulated Other Comprehensive Income/(Loss) Balance, December 31, 2023 $ (7,863) $ (217) $ (9) $ 128 $ (7,961) Other comprehensive income/(loss) (b) 41 140 8 (44) 145 Balance, June 30, 2024 $ (7,822) $ (77) $ (1) $ 84 $ (7,816) (a) Amounts do not include foreign currency translation adjustments attributable to noncontrolling interests. (b) Foreign currency translation adjustments include net gains related to the impact of our net investment hedging program and net losses related to our equity-method investment in Haleon (see Note 2B ). |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | Financial Instruments A. Fair Value Measurements Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis and Fair Value Hierarchy, using a Market Approach: June 30, 2024 December 31, 2023 (MILLIONS) Total Level 1 Level 2 Total Level 1 Level 2 Financial assets: Short-term investments Equity securities with readily determinable fair values: Money market funds $ 975 $ — $ 975 $ 5,124 $ — $ 5,124 Available-for-sale debt securities: Government and agency—non-U.S. 1,120 — 1,120 817 — 817 Government and agency—U.S. 2,073 — 2,073 2,601 — 2,601 Corporate and other 1,208 — 1,208 982 — 982 4,401 — 4,401 4,400 — 4,400 Total short-term investments 5,376 — 5,376 9,524 — 9,524 Other current assets Derivative assets: Foreign exchange contracts 421 — 421 298 — 298 Total other current assets 421 — 421 298 — 298 Long-term investments Equity securities with readily determinable fair values (a) 2,210 2,210 — 2,779 2,772 7 Available-for-sale debt securities: Government and agency—non-U.S. 63 — 63 124 — 124 Corporate and other 6 — 6 26 — 26 69 — 69 150 — 150 Total long-term investments 2,280 2,210 70 2,929 2,772 156 Other noncurrent assets Derivative assets: Interest rate contracts 19 — 19 144 — 144 Foreign exchange contracts 354 — 354 258 — 258 Total derivative assets 374 — 374 402 — 402 Insurance contracts (b) 872 — 872 790 — 790 Total other noncurrent assets 1,246 — 1,246 1,191 — 1,191 Total assets $ 9,322 $ 2,210 $ 7,112 $ 13,943 $ 2,772 $ 11,170 Financial liabilities: Other current liabilities Derivative liabilities: Interest rate contracts $ 33 $ — $ 33 $ 16 $ — $ 16 Foreign exchange contracts 139 — 139 404 — 404 Total other current liabilities 172 — 172 420 — 420 Other noncurrent liabilities Derivative liabilities: Interest rate contracts 375 — 375 275 — 275 Foreign exchange contracts 682 — 682 725 — 725 Total other noncurrent liabilities 1,056 — 1,056 1,000 — 1,000 Total liabilities $ 1,228 $ — $ 1,228 $ 1,420 $ — $ 1,420 (a) Long-term equity securities of $119 million as of June 30, 2024 and $130 million as of December 31, 2023 were held in restricted trusts for U.S. non-qualified employee benefit plans. (b) Includes life insurance policies held in restricted trusts for U.S. non-qualified employee benefit plans. The underlying invested assets in these contracts are marketable securities, which are carried at fair value, with changes in fair value recognized in Other (income)/deductions—net (see Note 4 ). Financial Assets and Liabilities Not Measured at Fair Value on a Recurring Basis–– The carrying value of Long-term debt, excluding the current portion, was $58 billion as of June 30, 2024 and $62 billion as of December 31, 2023. The estimated fair value of such debt, using a market approach and Level 2 inputs, was $54 billion as of June 30, 2024 and $61 billion as of December 31, 2023. The differences between the estimated fair values and carrying values of held-to-maturity debt securities, private equity securities, long-term receivables and short-term borrowings not measured at fair value on a recurring basis were not significant as of June 30, 2024 and December 31, 2023. The fair value measurements of our held-to-maturity debt securities and short-term borrowings are based on Level 2 inputs. The fair value measurements of our long-term receivables and private equity securities are based on Level 3 inputs. B. Investments Total Short-Term, Long-Term and Equity-Method Investments The following summarizes our investments by classification type: (MILLIONS) June 30, December 31, 2023 Short-term investments Equity securities with readily determinable fair values (a) $ 975 $ 5,124 Available-for-sale debt securities 4,401 4,400 Held-to-maturity debt securities 673 313 Total Short-term investments $ 6,048 $ 9,837 Long-term investments Equity securities with readily determinable fair values (b) $ 2,210 $ 2,779 Available-for-sale debt securities 69 150 Held-to-maturity debt securities 54 47 Private equity securities at cost (b) 786 755 Total Long-term investments $ 3,119 $ 3,731 Equity-method investments 8,029 11,637 Total long-term investments and equity-method investments $ 11,149 $ 15,368 Held-to-maturity cash equivalents $ 317 $ 207 (a) Represent money market funds primarily invested in U.S. Treasury and government debt. (b) Represent investments in the life sciences sector. Debt Securities Our investment portfolio consists of investment-grade debt securities issued across diverse governments, corporate and financial institutions: June 30, 2024 December 31, 2023 Gross Unrealized Contractual or Estimated Maturities (in Years) Gross Unrealized (MILLIONS) Amortized Cost Gains Losses Fair Value Within 1 Over 1 Over 5 Amortized Cost Gains Losses Fair Value Available-for-sale debt securities Government and agency –– non-U.S. $ 1,184 $ 4 $ (6) $ 1,183 $ 1,120 $ 63 $ — $ 953 $ 2 $ (14) $ 941 Government and agency––U.S. 2,073 — — 2,073 2,073 — — 2,601 — — 2,601 Corporate and other 1,213 2 (2) 1,214 1,208 6 — 1,006 4 (2) 1,007 Held-to-maturity debt securities Time deposits and other 942 — — 942 892 28 21 561 — — 561 Government and agency –– non-U.S. 102 — — 102 98 4 1 4 — — 4 Total debt securities $ 5,515 $ 6 $ (7) $ 5,514 $ 5,391 $ 101 $ 22 $ 5,126 $ 6 $ (16) $ 5,115 Any expected credit losses to these portfolios would be immaterial to our financial statements. Equity Securities The following presents the calculation of the portion of unrealized (gains)/losses that relates to equity securities, excluding equity-method investments, held at the reporting date: Three Months Ended Six Months Ended (MILLIONS) June 30, July 2, June 30, July 2, Net (gains)/losses recognized during the period on equity securities (a) $ 342 $ (135) $ 317 $ 316 Less: Net (gains)/losses recognized during the period on equity securities sold during the period (2) (14) (216) (47) Net unrealized (gains)/losses during the reporting period on equity securities still held at the reporting date (b) $ 344 $ (121) $ 533 $ 363 (a) Reported in Other (income)/deductions –– net. See Note 4 . (b) Included in net unrealized (gains)/losses are observable price changes on equity securities without readily determinable fair values. As of June 30, 2024, there were cumulative impairments and downward adjustments of $306 million and upward adjustments of $214 million. Impairments, downward and upward adjustments were not material to our operations in the second quarters and first six months of 2024 and 2023. C. Short-Term Borrowings Short-term borrowings include: (MILLIONS) June 30, December 31, 2023 Commercial paper, principal amount $ 7,964 $ 7,965 Current portion of long-term debt, principal amount 3,750 2,250 Other short-term borrowings, principal amount (a) 320 252 Total short-term borrowings, principal amount 12,034 10,467 Net fair value adjustments related to hedging and purchase accounting — 5 Net unamortized discounts, premiums and debt issuance costs (90) (121) Total Short-term borrowings, including current portion of long-term debt , carried at historical proceeds, as adjusted $ 11,944 $ 10,350 (a) Primarily includes cash collateral. See Note 7F . D. Long-Term Debt The following summarizes the aggregate principal amount of our senior unsecured long-term debt, and adjustments to report our aggregate long-term debt: (MILLIONS) June 30, December 31, 2023 Total long-term debt, principal amount $ 57,193 $ 60,982 Net fair value adjustments related to hedging and purchase accounting 773 1,039 Net unamortized discounts, premiums and debt issuance costs (460) (483) Total long-term debt, carried at historical proceeds, as adjusted $ 57,506 $ 61,538 E. Derivative Financial Instruments and Hedging Activities Foreign Exchange Risk–– A significant portion of our revenues, earnings and net investments in foreign affiliates is exposed to changes in foreign exchange rates. Where foreign exchange risk is not offset by other exposures, we manage our foreign exchange risk principally through the use of derivative financial instruments and foreign currency debt. These financial instruments serve to mitigate the impact on net income as a result of remeasurement into another currency, or against the impact of translation into U.S. dollars of certain foreign exchange-denominated transactions. The derivative financial instruments primarily hedge or offset exposures in the euro, U.K. pound, Chinese renminbi, Japanese yen and Swedish krona, and include a portion of our forecasted foreign exchange-denominated intercompany inventory sales hedged up to two years. We may seek to protect against possible declines in the reported net investments of our foreign business entities. Interest Rate Risk–– Our interest-bearing investments and borrowings are subject to interest rate risk. Depending on market conditions, we may change the profile of our outstanding debt or investments by entering into derivative financial instruments like interest rate swaps, either to hedge or offset the exposure to changes in the fair value of hedged items with fixed interest rates, or to convert variable rate debt or investments to fixed rates. The derivative financial instruments primarily hedge U.S. dollar fixed-rate debt. The following summarizes the fair value of the derivative financial instruments and notional amounts: June 30, 2024 December 31, 2023 Fair Value Fair Value (MILLIONS) Notional Asset Liability Notional Asset Liability Derivatives designated as hedging instruments : Foreign exchange contracts (a) $ 22,740 $ 678 $ 704 $ 18,750 $ 403 $ 916 Interest rate contracts 6,750 19 408 6,750 144 290 698 1,112 546 1,206 Derivatives not designated as hedging instruments : Foreign exchange contracts $ 22,055 97 116 $ 25,609 154 214 Total $ 795 $ 1,228 $ 700 $ 1,420 (a) The notional amount of outstanding foreign exchange contracts hedging our intercompany forecasted inventory sales was $5.6 billion as of June 30, 2024 and $4.9 billion as of December 31, 2023. The following summarizes information about the gains/(losses) incurred to hedge or offset operational foreign exchange or interest rate risk exposures: Gains/(Losses) (a) Gains/(Losses) (a) Gains/(Losses) Reclassified from OCI into OID and COS (a) Three Months Ended (MILLIONS) June 30, July 2, June 30, July 2, June 30, July 2, Derivative Financial Instruments in Cash Flow Hedge Relationships: Interest rate contracts $ — $ — $ — $ 68 $ — $ — Foreign exchange contracts (b) — — 117 6 137 126 Amount excluded from effectiveness testing and amortized into earnings (c) — — 10 34 10 37 Derivative Financial Instruments in Fair Value Hedge Relationships: Interest rate contracts (36) (45) — — — — Hedged item 36 45 — — — — Derivative Financial Instruments in Net Investment Hedge Relationships: Foreign exchange contracts — — 81 (70) — — Amount excluded from effectiveness testing and amortized into earnings (c) — — 31 9 40 33 Non-Derivative Financial Instruments in Net Investment Hedge Relationships (d) : Foreign currency long-term debt — — 8 (1) — — Derivative Financial Instruments Not Designated as Hedges: Foreign exchange contracts (13) 99 — — — — $ (13) $ 99 $ 247 $ 47 $ 187 $ 196 Gains/(Losses) (a) Gains/(Losses) (a) Gains/(Losses) Reclassified from OCI into OID and COS (a) Six Months Ended (MILLIONS) June 30, July 2, June 30, July 2, June 30, July 2, Derivative Financial Instruments in Cash Flow Hedge Relationships: Interest rate contracts $ — $ — $ — $ 68 $ — $ — Foreign exchange contracts (b) — — 327 (47) 142 (230) Amount excluded from effectiveness testing and amortized into earnings (c) — — 17 90 17 90 Derivative Financial Instruments in Fair Value Hedge Relationships: Interest rate contracts (224) 3 — — — — Hedged item 224 (3) — — — — Derivative Financial Instruments in Net Investment Hedge Relationships: Foreign exchange contracts — — 315 (283) — — Amount excluded from effectiveness testing and amortized into earnings (c) — — 52 76 76 67 Non-Derivative Financial Instruments in Net Investment Hedge Relationships (d) : Foreign currency long-term debt — — 26 (17) — — Derivative Financial Instruments Not Designated as Hedges: Foreign exchange contracts 42 116 — — — — $ 42 $ 116 $ 737 $ (113) $ 235 $ (73) (a) OID = Other (income)/deductions—net, included in Other (income)/deductions—net in the condensed consolidated statements of operations . COS = Cost of Sales, included in Cost of sales in the condensed consolidated statements of operations. OCI = Other comprehensive income/(loss), included in the condensed consolidated statements of comprehensive income/(loss) . (b) The amounts reclassified from OCI into COS were: • a net gain of $38 million in the second quarter of 2024; • a net gain of $70 million in the first six months of 2024; • a net gain of $55 million in the second quarter of 2023; and • a net gain of $146 million in the first six months of 2023. The remaining amounts were reclassified from OCI into OID. Based on quarter-end foreign exchange rates that are subject to change, we expect to reclassify a pre-tax gain of $157 million within the next 12 months into income . The maximum length of time over which we are hedging our exposure to the variability in future foreign exchange cash flows is approximately 19 years and relates to foreign currency debt. (c) The amounts reclassified from OCI were reclassified into OID. (d) Long-term debt includes foreign currency borrowings, which are used in net investment hedges; the related carrying values as of June 30, 2024 and December 31, 2023 were $799 million and $824 million, respectively. The following summarizes cumulative basis adjustments to our long-term debt in fair value hedges: June 30, 2024 December 31, 2023 Cumulative Amount of Fair Value Hedging Adjustment Increase/(Decrease) to Cumulative Amount of Fair Value Hedging Adjustment Increase/(Decrease) to (MILLIONS) Carrying Amount of Hedged Assets/Liabilities (a) Active Hedging Relationships Discontinued Hedging Relationships Carrying Amount of Hedged Assets/Liabilities (a) Active Hedging Relationships Discontinued Hedging Relationships Long-term debt $ 7,175 $ (355) $ 924 $ 7,196 $ (131) $ 957 (a) Carrying amounts exclude the cumulative amount of fair value hedging adjustments. F. Credit Risk A significant portion of our trade accounts receivable balances are due from wholesalers and governments. For additional information on our trade accounts receivables with significant customers, see Note 13C below and Note 17C in our 2023 Form 10-K. As of June 30, 2024, the largest investment exposures in our portfolio consisted primarily of U.S. government money market funds, as well as sovereign debt instruments issued by the U.S. With respect to our derivative financial instrument agreements with financial institutions, we do not expect to incur a significant loss from failure of any counterparty. Derivative financial instruments are executed under International Swaps and Derivatives Association master agreements with credit-support annexes that contain zero threshold provisions requiring collateral to be exchanged daily depending on levels of exposure. As a result, there are no significant concentrations of credit risk with any individual financial institution. As of June 30, 2024, the aggregate fair value of these derivative financial instruments that are in a net payable position was $775 million, for which we have posted collateral of $764 million with a corresponding amount reported in Short-term investments . As of June 30, 2024, the aggregate fair value of our derivative financial instruments that are in a net receivable position was $281 million, for which we have received collateral of $288 million with a corresponding amount reported in Short-term borrowings, including current portion of long-term debt. |
Other Financial Information
Other Financial Information | 6 Months Ended |
Jun. 30, 2024 | |
Other Financial Information [Abstract] | |
Other Financial Information | Other Financial Information A. Inventories The following summarizes the components of Inventories : (MILLIONS) June 30, December 31, 2023 Finished goods $ 3,220 $ 3,495 Work-in-process 7,072 5,688 Raw materials and supplies 1,156 1,007 Inventories (a) $ 11,447 $ 10,189 Noncurrent inventories not included above (b) $ 2,918 $ 4,568 (a) The increase from December 31, 2023 reflects higher inventory levels for certain products mainly for supply recovery and network strategy. (b) Included in Other noncurrent assets . The decrease from December 31, 2023 is primarily driven by an adjustment to the fair value step-up of acquired Seagen inventory. Based on our current estimates and assumptions, there are no recoverability issues for these amounts. B. Comirnaty Gross Profit Split Amounts due from BioNTech for the Comirnaty gross profit split totaled $275 million in Other current assets as of June 30, 2024, and amounts payable to BioNTech for the Comirnaty gross profit split totaled $2.0 billion in Other current liabilities as of December 31, 2023. The change in the first six months of 2024 is primarily due to a decline in Comirnaty sales and the timing of gross profit split settlements with BioNTech. C. Supplier Finance Program Obligation We maintain voluntary supply chain finance agreements with several participating financial institutions. Under these agreements, participating suppliers may voluntarily elect to sell their accounts receivable with Pfizer to these financial institutions. As of June 30, 2024 and December 31, 2023, respectively, $593 million and $791 million of our trade payables to suppliers who participate in these financing arrangements were outstanding. |
Identifiable Intangible Assets
Identifiable Intangible Assets and Goodwill | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Identifiable Intangible Assets and Goodwill | Identifiable Intangible Assets and Goodwill A. Identifiable Intangible Assets The following summarizes the components of Identifiable intangible assets : June 30, 2024 December 31, 2023 (MILLIONS) Gross Accumulated Identifiable Gross Accumulated Identifiable Finite-lived intangible assets Developed technology rights (a) $ 99,449 $ (62,905) $ 36,543 $ 99,267 $ (60,493) $ 38,773 Brands (b) 1,749 (933) 816 922 (877) 45 Licensing agreements and other 2,761 (1,527) 1,234 2,756 (1,458) 1,297 103,959 (65,365) 38,594 102,944 (62,828) 40,116 Indefinite-lived intangible assets Brands (b) — — 827 827 IPR&D (c) 21,976 21,976 23,193 23,193 Licensing agreements and other 670 670 763 763 22,646 22,646 24,784 24,784 Identifiable intangible assets (d) $ 126,605 $ (65,365) $ 61,240 $ 127,728 $ (62,828) $ 64,900 (a) The increase in the gross carrying amount includes the transfer of IPR&D to developed technology rights of $727 million for talazoparib (Talzenna), partially offset by $385 million of measurement period adjustments related to our acquisition of Seagen (see Note 2A ) and impairments of $109 million (see Note 4 ). (b) The changes in the gross carrying amounts reflect the transfer of $827 million from indefinite-lived brands to finite-lived brands for Depo-Medrol. (c) The decrease in the gross carrying amount reflects the transfer of IPR&D to developed technology rights of $727 million for talazoparib (Talzenna), $250 million of measurement period adjustments related to our acquisition of Seagen (see Note 2A ) and impairments of $240 million (see Note 4 ) . (d) The decrease is primarily due to amortization expense of $2.6 billion, measurement period adjustments related to our acquisition of Seagen of $625 million (see Note 2A ) and impairments of $349 million (see Note 4 ). B. Goodwill The following summarizes the changes in the carrying amount of Goodwill : (MILLIONS) Total (a) Balance, January 1, 2024 $ 67,783 Additions (b) 677 Impact of foreign exchange (16) Balance, June 30, 2024 $ 68,445 (a) All goodwill is assigned within the Biopharma reportable segment. As a result of the organizational changes to the commercial structure within the Biopharma operating segment effective in the first quarter of 2024 (see Note 13A ), our goodwill is required to be reallocated amongst impacted reporting units. The allocation of goodwill is a complex process that requires, among other things, that we determine the fair value of each reporting unit under our old and new organizational structure and the portions being transferred. Therefore, we have not yet completed the allocation, but it will be completed in the current year. (b) Additions primarily represent measurement period adjustments related to our acquisition of Seagen (see Note 2A ). |
Pension and Postretirement Bene
Pension and Postretirement Benefit Plans | 6 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
Pension and Postretirement Benefit Plans | Pension and Postretirement Benefit Plans The following summarizes the components of net periodic benefit cost/(credit): Pension Plans U.S. International Postretirement Three Months Ended (MILLIONS) June 30, July 2, June 30, July 2, June 30, July 2, Service cost $ — $ — $ 23 $ 22 $ 4 $ 3 Interest cost 139 147 77 72 6 5 Expected return on plan assets (208) (194) (80) (76) (13) (11) Amortization of prior service cost/(credit) — — 1 — (29) (30) Actuarial (gains)/losses — 5 — — — — Curtailments — — — — — (7) Special termination benefits — 5 2 — — — Net periodic benefit cost/(credit) reported in income $ (69) $ (37) $ 23 $ 18 $ (33) $ (39) Pension Plans U.S. International Postretirement Six Months Ended (MILLIONS) June 30, July 2, June 30, July 2, June 30, July 2, Service cost $ — $ — $ 44 $ 43 $ 7 $ 6 Interest cost 277 295 155 143 12 11 Expected return on plan assets (416) (389) (160) (152) (25) (22) Amortization of prior service cost/(credit) 1 1 2 — (59) (60) Actuarial (gains)/losses — 14 — 3 — — Curtailments — — (2) (1) — (12) Special termination benefits — 6 6 — — — Net periodic benefit cost/(credit) reported in income $ (139) $ (73) $ 46 $ 36 $ (65) $ (77) The components of net periodic benefit cost/(credit) other than the service cost component are primarily included in Other (income)/deductions––net (see Note 4 ). |
Earnings Per Common Share Attri
Earnings Per Common Share Attributable to Pfizer Inc. Common Shareholders | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share Attributable to Pfizer Inc. Common Shareholders | Earnings Per Common Share Attributable to Pfizer Inc. Common Shareholders The following presents the detailed calculation of EPS : Three Months Ended Six Months Ended (MILLIONS) June 30, July 2, June 30, July 2, EPS Numerator Income from continuing operations attributable to Pfizer Inc. common shareholders $ 24 $ 2,329 $ 3,144 $ 7,871 Discontinued operations––net of tax 17 (2) 12 (1) Net income attributable to Pfizer Inc. common shareholders $ 41 $ 2,327 $ 3,156 $ 7,870 EPS Denominator Weighted-average number of common shares outstanding––Basic 5,666 5,646 5,662 5,640 Common-share equivalents 29 67 35 80 Weighted-average number of common shares outstanding––Diluted 5,696 5,713 5,696 5,720 Anti-dilutive common stock equivalents (a) 23 3 24 2 (a) These common stock equivalents were outstanding for the periods presented, but were not included in the computation of diluted EPS for those periods because their inclusion would have had an anti-dilutive effect. |
Contingencies and Certain Commi
Contingencies and Certain Commitments | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Certain Commitments | Contingencies and Certain Commitments We and certain of our subsidiaries are subject to numerous contingencies arising in the ordinary course of business, including tax and legal contingencies, guarantees and indemnifications. The following outlines our legal contingencies, guarantees and indemnifications. For a discussion of our tax contingencies, see Note 5B . A. Legal Proceedings Our legal contingencies include, but are not limited to, the following: • Patent litigation, which typically involves challenges to the coverage and/or validity of patents on various products, processes or dosage forms. An adverse outcome could result in loss of patent protection for a product, a significant loss of revenues from a product or impairment of the value of associated assets. We are the plaintiff in the majority of these actions. • Product liability and other product-related litigation related to current or former products, which can include personal injury, consumer, off-label promotion, securities, antitrust and breach of contract claims, among others, and often involves highly complex issues relating to medical causation, label warnings and reliance on those warnings, scientific evidence and findings, actual, provable injury and other matters. • Commercial and other asserted or unasserted matters, which can include acquisition-, licensing-, intellectual property-, collaboration- or co-promotion-related and product-pricing claims and environmental claims and proceedings, and can involve complexities that will vary from matter to matter. • Government investigations, which often are related to the extensive regulation of pharmaceutical companies by national, state and local government agencies in the U.S. and in other jurisdictions. Certain of these contingencies could result in increased expenses and/or losses, including damages, royalty payments, fines and/or civil penalties, which could be substantial, and/or criminal charges. We believe that our claims and defenses in matters in which we are a defendant are substantial, but litigation is inherently unpredictable and excessive verdicts do occur. We do not believe that any of these matters will have a material adverse effect on our financial position. However, we could incur judgments, enter into settlements or revise our expectations regarding the outcome of matters, which could have a material adverse effect on our results of operations and/or our cash flows in the period in which the amounts are accrued or paid. We have accrued for losses that are both probable and reasonably estimable. Substantially all of our contingencies are subject to significant uncertainties and, therefore, determining the likelihood of a loss and/or the measurement of any loss can be complex. Consequently, we are unable to estimate the range of reasonably possible loss in excess of amounts accrued. Our assessments, which result from a complex series of judgments about future events and uncertainties, are based on estimates and assumptions that have been deemed reasonable by management, but that may prove to be incomplete or inaccurate, and unanticipated events and circumstances may occur that might cause us to change those estimates and assumptions. Amounts recorded for legal and environmental contingencies can result from a complex series of judgments about future events and uncertainties and can rely heavily on estimates and assumptions. For proceedings under environmental laws to which a governmental authority is a party, we have adopted a disclosure threshold of $1 million in potential or actual governmental monetary sanctions. The principal pending matters to which we are a party are discussed below. In determining whether a pending matter is a principal matter, we consider both quantitative and qualitative factors to assess materiality, such as, among others, the amount of damages and the nature of other relief sought, if specified; our view of the merits of the claims and of the strength of our defenses; whether the action purports to be, or is, a class action and, if not certified, our view of the likelihood that a class will be certified by the court; the jurisdiction in which the proceeding is pending; whether related actions have been transferred to multidistrict litigation; any experience that we or, to our knowledge, other companies have had in similar proceedings; whether disclosure of the action would be important to a reader of our financial statements, including whether disclosure might change a reader’s judgment about our financial statements in light of all of the information that is available to the reader; the potential impact of the proceeding on our reputation; and the extent of public interest in the matter. In addition, with respect to patent matters in which we are the plaintiff, we consider, among other things, the financial significance of the product protected by the patent(s) at issue. Some of the matters discussed below include those which management believes that the likelihood of possible loss in excess of amounts accrued is remote. A1. Legal Proceedings––Patent Litigation We are involved in suits relating to our patents (or those of our collaboration/licensing partners to which we have licenses or co-promotion rights), including but not limited to, those discussed below. We face claims by generic drug manufacturers that patents covering our products (or those of our collaboration/licensing partners to which we have licenses or co-promotion rights and to which we may or may not be a party), processes or dosage forms are invalid and/or do not cover the product of the generic drug manufacturer. Also, counterclaims, as well as various independent actions, have been filed alleging that our assertions of, or attempts to enforce, patent rights with respect to certain products constitute unfair competition and/or violations of antitrust laws. In addition to the challenges to the U.S. patents that are discussed below, patent rights to certain of our products or those of our collaboration/licensing partners are being challenged in various other jurisdictions. Some of our collaboration or licensing partners face challenges to the validity of their patent rights in non-U.S. jurisdictions. For example, in April 2022, the U.K. High Court issued a judgment finding invalid a BMS patent related to Eliquis due to expire in 2026. In May 2023, the Court of Appeal dismissed BMS’s appeal and in October 2023, the Supreme Court refused BMS’s permission to appeal. Additional challenges are pending in other jurisdictions. Also, in July 2022, CureVac AG (CureVac) brought a patent infringement action against BioNTech and certain of its subsidiaries in the German Regional Court alleging that Comirnaty infringes certain German utility model patents and certain expired and unexpired European patents. Additional challenges involving Comirnaty patents may be filed against us and/or BioNTech in other jurisdictions in the future. Adverse decisions in these matters could have a material adverse effect on our results of operations. We are also party to patent damages suits in various jurisdictions pursuant to which generic drug manufacturers, payors, governments or other parties are seeking damages from us for allegedly causing delay of generic entry. We also are often involved in other proceedings, such as inter partes review, post-grant review, re-examination or opposition proceedings, before the U.S. Patent and Trademark Office, the European Patent Office, or other foreign counterparts, as well as court proceedings relating to our intellectual property or the intellectual property rights of others, including challenges to such rights initiated by us. Also, if one of our patents (or one of our collaboration/licensing partner’s patents) is found to be invalid by such proceedings, generic or competitive products could be introduced into the market resulting in the erosion of sales of our existing products. For example, several of the patents in our pneumococcal vaccine portfolio have been challenged in inter partes review and post-grant review proceedings in the U.S. Patent and Trademark Office, as well as outside the U.S. The invalidation of any of the patents in our pneumococcal portfolio could potentially allow additional competitor vaccines, if approved, to enter the marketplace earlier than anticipated. In the event that any of the patents are found valid and infringed, a competitor’s vaccine, if approved, might be prohibited from entering the market or a competitor might be required to pay us a royalty. We are also subject to patent litigation pursuant to which one or more third parties seek damages and/or injunctive relief to compensate for alleged infringement of its patents by our commercial or other activities. If one of our marketed products (or a product of our collaboration/licensing partners to which we have licenses or co-promotion rights) is found to infringe valid patent rights of a third party, such third party may be awarded significant damages or royalty payments, or we may be prevented from further sales of that product. Such damages may be enhanced as much as three-fold if we or one of our subsidiaries is found to have willfully infringed valid patent rights of a third party. Actions In Which We Are The Plaintiff Xeljanz (tofacitinib) Beginning in 2017, we brought patent-infringement actions against several generic manufacturers that filed separate abbreviated new drug applications (ANDAs) with the FDA seeking approval to market their generic versions of tofacitinib tablets in one or both of 5 mg and 10 mg dosage strengths, and in both immediate and extended release forms. To date, we have settled actions with several manufacturers on terms not material to us. The remaining actions continue in the U.S. District Court for the District of Delaware as described below. In October 2021, we brought a separate patent-infringement action against Sinotherapeutics Inc. (Sinotherapeutics) asserting the infringement and validity of our patent covering extended release formulations of tofacitinib that was challenged by Sinotherapeutics in its ANDA seeking approval to market a generic version of tofacitinib 11 mg extended release tablets. In November 2022, we filed an additional patent-infringement action against Sinotherapeutics relating to its challenge of our extended release formulation and method of treatment patents in its ANDA seeking approval to market a generic version of tofacitinib 22 mg extended release tablets. In June 2024, we brought a separate patent-infringement action against Biocon Limited, Biocon Pharma Limited and Biocon Pharma, Inc. (collectively, Biocon) asserting the infringement and validity of our patent covering the composition of matter patent that was challenged by Biocon in its ANDA seeking approval to market a generic version of tofacitinib 11 mg and 22 mg extended-release tablets. Mektovi (binimetinib) Beginning in August 2022, several generic companies notified us that they had filed ANDAs with the FDA seeking approval to market generic versions of Mektovi. The companies assert the invalidity and non-infringement of two method of use patents expiring in 2030, a method of use patent expiring in 2031, two method of use patents expiring in 2033, and a product by process patent expiring in 2033. Beginning in September 2022, we brought patent infringement actions against the generic filers in the U.S. District Court for the District of Delaware, asserting the validity and infringement of all six patents. In August 2022 we received notice from Teva Pharmaceuticals, Inc. (Teva) that it had filed an ANDA seeking approval to market a generic version of Mektovi. Teva asserts the invalidity and non-infringement of two method of use patents expiring in 2033 and a product by process patent expiring in 2033. In June 2023, we brought a patent infringement action against Teva in the U.S. District Court for the District of Delaware, asserting the validity and infringement of the three patents. Vyndaqel-Vyndamax (tafamidis/tafamidis meglumine) Beginning in June 2023, several generic companies notified us that they had filed ANDAs with the FDA seeking approval to market generic versions of tafamidis capsules (61 mg) or tafamidis meglumine capsules (20 mg), challenging some or all of the patents listed in the FDA’s Orange Book for Vyndamax (tafamidis) and Vyndaqel (tafamidis meglumine). Scripps Research Institute (Scripps) owns the composition of matter patent and the method of treatment patents covering the products, and Pfizer is the exclusive licensee. Pfizer separately owns the crystalline form patent. Beginning in August 2023, we and Scripps brought patent infringement actions against the generic filers in the U.S. District Court for the District of Delaware, asserting the validity and infringement of the patents in suit. Pfizer is the sole plaintiff in actions that assert only the infringement and validity of the crystalline form patent. Oxbryta (voxelotor) In January 2024, Zydus Pharmaceuticals (USA) Inc., Zydus Lifesciences Limited, and Zydus Worldwide DMCC (collectively, Zydus) and MSN Pharmaceuticals Inc. and MSN Laboratories Private Ltd. (collectively, MSN) separately notified us that they had filed ANDAs with the FDA seeking approval to market generic versions of voxelotor tablets, challenging some of the patents listed in the FDA’s Orange Book for Oxbryta (voxelotor tablets in 300 mg and 500 mg strengths and/or for oral suspension) on non-infringement grounds. In March 2024, we filed patent infringement actions against both generic filers in the U.S. District Court for the District of Delaware, asserting the validity and infringement of the challenged patents. Zydus and MSN have not challenged our composition of matter patents or method of treatment patents for Oxbryta. Nurtec (rimegepant) In April 2024, Rubicon Research Private Limited, Teva Pharmaceuticals, Inc., Changzhou Pharmaceutical Factory, Natco Pharma Limited and Natco Pharma, Inc., MSN, Aurobindo Pharma Limited, Apitoria Pharma Private Limited and Aurobindo Pharma U.S.A. Inc. (collectively, Aurobindo) and Apotex Inc. and Apotex Corp. (collectively, Apotex) notified us that they had filed ANDAs with the FDA seeking approval to market generic versions of rimegepant orally disintegrating tablets, claiming noninfringement and/or challenging the validity of some or all of the patents listed in the FDA’s Orange Book for Nurtec (rimegepant orally disintegrating tablets Eq 75 mg base). In May 2024, we filed patent infringement actions against all the generic filers in the U.S. District Court for the District of Delaware. Actions in Which We are the Defendant Comirnaty In March 2022, Alnylam Pharmaceuticals, Inc. (Alnylam) filed a complaint in the U.S. District Court for the District of Delaware against Pfizer and Pharmacia & Upjohn Company LLC, our wholly owned subsidiary, alleging that Comirnaty infringes a U.S. patent issued in February 2022, and seeking unspecified monetary damages. In July 2022, Alnylam filed a second complaint in the U.S. District Court for the District of Delaware against Pfizer, Pharmacia & Upjohn Company LLC, BioNTech and BioNTech Manufacturing GmbH, alleging that Comirnaty infringes a U.S. patent issued in July 2022, and seeking unspecified monetary damages. In May 2023, Alnylam filed a separate complaint in the U.S. District Court for the District of Delaware against Pfizer and Pharmacia & Upjohn Company LLC alleging that Comirnaty infringes four additional U.S. patents issued on various dates in 2023 and seeking unspecified monetary damages. In August 2022, ModernaTX, Inc. (ModernaTX) and Moderna US, Inc. (Moderna) sued Pfizer, BioNTech, BioNTech Manufacturing GmbH and BioNTech US Inc. in the U.S. District Court for the District of Massachusetts, alleging that Comirnaty infringes three U.S. patents. In its complaint, Moderna stated that it is seeking damages for alleged infringement occurring after March 7, 2022. In March 2024, the U.S. Patent Office Patent Trial & Appeal Board instituted a review of two of the three patents in suit. In August 2022, ModernaTX filed a patent infringement action in Germany against Pfizer and certain subsidiary companies, as well as BioNTech and certain subsidiary companies, alleging that Comirnaty infringes two European patents. In September 2022, ModernaTX filed patent infringement actions in the U.K. and in the Netherlands against Pfizer and certain subsidiary companies, as well as BioNTech and certain subsidiary companies, on the same two European patents. In its complaints, ModernaTX stated that it is seeking damages for alleged infringement occurring after March 7, 2022. In November 2023, one of the European patents was revoked by the European Patent Office. In December 2023, the other European patent was declared invalid by a court in the Netherlands (the invalidity decision is limited to the Netherlands). In July 2024, the U.K. court revoked one patent, ruling that it is invalid, and held that the other patent was valid and infringed. ModernaTX has also filed additional patent infringement actions against Pfizer and BioNTech in certain other ex-U.S. jurisdictions. In April 2023, Arbutus Biopharma Corporation (Arbutus) and Genevant Sciences GmbH (Genevant) filed a complaint in the U.S. District Court for the District of New Jersey against Pfizer and BioNTech alleging that Comirnaty and its manufacture infringe five U.S. patents, and seeking unspecified monetary damages. In April 2024, GlaxoSmithKline Biologicals SA and GlaxoSmithKline LLC sued Pfizer and Pharmacia & Upjohn Company LLC, BioNTech, BioNTech Manufacturing GmbH and BioNTech US Inc. in the U.S. District Court for the District of Delaware, alleging that Comirnaty infringes five U.S. patents and seeking unspecified money damages. Paxlovid In June 2022, Enanta Pharmaceuticals, Inc. filed a complaint in the U.S. District Court for the District of Massachusetts against Pfizer alleging that the active ingredient in Paxlovid, nirmatrelvir, infringes a U.S. patent issued in June 2022, and seeking unspecified monetary damages. Abrysvo In August 2023, GlaxoSmithKline Biologics SA and GlaxoSmithKline LLC (collectively, GSK Group) filed a complaint in the U.S. District Court for the District of Delaware against Pfizer alleging that the active ingredient in Abrysvo infringes four U.S. patents. The complaint seeks unspecified monetary damages and a permanent injunction against sales of Abrysvo for use in adults over 60 years of age. In November 2023, GSK Group amended its complaint to assert infringement of two additional patents. In addition, we have challenged certain of GSK’s RSV vaccine patents in certain ex-U.S. jurisdictions, including the U.K., the Netherlands and Belgium, and GSK has asserted that Abrysvo infringes these patents. Matters Involving Pfizer and its Collaboration/Licensing Partners Comirnaty In July 2022, Pfizer, BioNTech and BioNTech Manufacturing GmbH filed a declaratory judgment complaint against CureVac in the U.S. District Court for the District of Massachusetts seeking a judgment of non-infringement for three U.S. patents relating to Comirnaty. In May 2023, the case was transferred to the U.S. District Court for the Eastern District of Virginia. Also in May 2023, CureVac asserted that Comirnaty infringes the three patents that were the subject of our declaratory judgment complaint, and in May and July 2023, CureVac asserted that Comirnaty infringes a number of additional U.S. patents. In the U.K., Pfizer and BioNTech have sued CureVac seeking a judgment of invalidity of several patents and CureVac has made certain infringement counterclaims. A2. Legal Proceedings––Product Litigation We are defendants in numerous cases, including but not limited to those discussed below, related to our pharmaceutical and other products. Plaintiffs in these cases seek damages and other relief on various grounds for alleged personal injury and economic loss. Asbestos Between 1967 and 1982, Warner-Lambert owned American Optical Corporation (American Optical), which manufactured and sold respiratory protective devices and asbestos safety clothing. In connection with the sale of American Optical in 1982, Warner-Lambert agreed to indemnify the purchaser for certain liabilities, including certain asbestos-related and other claims. Warner-Lambert was acquired by Pfizer in 2000 and is a wholly owned subsidiary of Pfizer. Warner-Lambert is actively engaged in the defense of, and will continue to explore various means of resolving, these claims. Numerous lawsuits against American Optical, Pfizer and certain of its previously owned subsidiaries are pending in various federal and state courts seeking damages for alleged personal injury from exposure to products allegedly containing asbestos and other allegedly hazardous materials sold by Pfizer and certain of its previously owned subsidiaries. There also are a small number of lawsuits pending in various federal and state courts seeking damages for alleged exposure to asbestos in facilities owned or formerly owned by Pfizer or its subsidiaries. Effexor Beginning in 2011, actions, including purported class actions, were filed in various federal courts against Wyeth and, in certain of the actions, affiliates of Wyeth and certain other defendants relating to Effexor XR, which is the extended-release formulation of Effexor. The plaintiffs in each of the class actions seek to represent a class consisting of all persons in the U.S. and its territories who directly purchased, indirectly purchased or reimbursed patients for the purchase of Effexor XR or generic Effexor XR from any of the defendants from June 14, 2008 until the time the defendants’ allegedly unlawful conduct ceased. The plaintiffs in all of the actions allege delay in the launch of generic Effexor XR in the U.S. and its territories, in violation of federal antitrust laws and, in certain of the actions, the antitrust, consumer protection and various other laws of certain states, as the result of Wyeth fraudulently obtaining and improperly listing certain patents for Effexor XR in the Orange Book, enforcing certain patents for Effexor XR and entering into a litigation settlement agreement with a generic drug manufacturer with respect to Effexor XR. Each of the plaintiffs seeks treble damages (for itself in the individual actions or on behalf of the putative class in the purported class actions) for alleged price overcharges for Effexor XR or generic Effexor XR in the U.S. and its territories since June 14, 2008. All of these actions have been consolidated in the U.S. District Court for the District of New Jersey. In 2014, the District Court dismissed the direct purchaser plaintiffs’ claims based on the litigation settlement agreement, but declined to dismiss the other direct purchaser plaintiff claims. In 2015, the District Court entered partial final judgments as to all settlement agreement claims, including those asserted by direct purchasers and end-payor plaintiffs, which plaintiffs appealed to the U.S. Court of Appeals for the Third Circuit. In 2017, the U.S. Court of Appeals for the Third Circuit reversed the District Court’s decisions and remanded the claims to the District Court. In April 2024, the parties reached agreements to settle the litigation. Certain of the settlements are subject to court approval. Lipitor Beginning in 2011, purported class actions relating to Lipitor were filed in various federal courts against, among others, Pfizer, certain Pfizer affiliates, and, in most of the actions, Ranbaxy Laboratories Limited (Ranbaxy) and certain Ranbaxy affiliates. The plaintiffs in these various actions seek to represent nationwide, multi-state or statewide classes consisting of persons or entities who directly purchased, indirectly purchased or reimbursed patients for the purchase of Lipitor (or, in certain of the actions, generic Lipitor) from any of the defendants from March 2010 until the cessation of the defendants’ allegedly unlawful conduct (the Class Period). The plaintiffs allege delay in the launch of generic Lipitor, in violation of federal antitrust laws and/or state antitrust, consumer protection and various other laws, resulting from (i) the 2008 agreement pursuant to which Pfizer and Ranbaxy settled certain patent litigation involving Lipitor and Pfizer granted Ranbaxy a license to sell a generic version of Lipitor in various markets beginning on varying dates, and (ii) in certain of the actions, the procurement and/or enforcement of certain patents for Lipitor. Each of the actions seeks, among other things, treble damages on behalf of the putative class for alleged price overcharges for Lipitor (or, in certain of the actions, generic Lipitor) during the Class Period. In addition, individual actions have been filed against Pfizer, Ranbaxy and certain of their affiliates, among others, that assert claims and seek relief for the plaintiffs that are substantially similar to the claims asserted and the relief sought in the purported class actions described above. These various actions have been consolidated for pre-trial proceedings in a MDL in the U.S. District Court for the District of New Jersey. In September 2013 and 2014, the District Court dismissed with prejudice the claims of the direct purchasers. In October and November 2014, the District Court dismissed with prejudice the claims of all other MDL plaintiffs. All plaintiffs appealed the District Court’s orders dismissing their claims with prejudice to the U.S. Court of Appeals for the Third Circuit. In addition, the direct purchaser class plaintiffs appealed the order denying their motion to amend the judgment and for leave to amend their complaint to the Court of Appeals. In 2017, the Court of Appeals reversed the District Court’s decisions and remanded the claims to the District Court. In April 2024, the parties reached agreements to settle the litigation. Certain of the settlements are subject to court approval. Also, in 2013, the State of West Virginia filed an action in West Virginia state court against Pfizer and Ranbaxy, among others, that asserts claims and seeks relief on behalf of the State of West Virginia and residents of that state that are substantially similar to the claims asserted and the relief sought in the purported class actions described above. EpiPen (Direct Purchaser) In February 2020, a lawsuit was filed in the U.S. District Court for the District of Kansas against Pfizer, its current and former affiliates King and Meridian, and various Mylan entities, on behalf of a purported U.S. nationwide class of direct purchaser plaintiffs who purchased EpiPen devices directly from the defendants. Plaintiffs in this action generally allege that Pfizer and Mylan conspired to delay market entry of generic EpiPen through the settlement of patent litigation regarding EpiPen, and thereby delayed market entry of generic EpiPen in violation of federal antitrust law. Plaintiffs seek treble damages for alleged overcharges for EpiPen since 2011. In July 2021, the District Court granted defendants’ motion to dismiss the direct purchaser complaint, without prejudice. In September 2021, plaintiffs filed an amended complaint. In August 2022, the District Court granted Pfizer’s motion to dismiss the complaint, and plaintiffs appealed to the U.S. Court of Appeals for the Tenth Circuit. In October 2023, the parties reached an agreement to settle the litigation on terms not material to Pfizer, which was approved by the court in July 2024. Docetaxel • Personal Injury Actions A number of lawsuits have been filed against Hospira and Pfizer in various federal and state courts alleging that plaintiffs who were treated with Docetaxel developed permanent hair loss. Hospira is a wholly-owned subsidiary that we acquired in September 2015. The significant majority of the cases also name other defendants, including the manufacturer of the branded product, Taxotere. Plaintiffs seek compensatory and punitive damages. Additional lawsuits have been filed in which plaintiffs allege they developed blocked tear ducts following their treatment with Docetaxel. In 2016, the federal cases were transferred for coordinated pre-trial proceedings to a MDL in the U.S. District Court for the Eastern District of Louisiana. In 2022, the eye injury cases were transferred for coordinated pre-trial proceedings to a MDL in the U.S. District Court for the Eastern District of Louisiana. • Mississippi Attorney General Government Action In 2018, the Attorney General of Mississippi filed a complaint in Mississippi state court against the manufacturer of the branded product and eight other manufacturers including Pfizer and Hospira, alleging, with respect to Pfizer and Hospira, a failure to warn about a risk of permanent hair loss in violation of the Mississippi Consumer Protection Act. The action sought civil penalties and injunctive relief. In June 2024, the Attorney General of Mississippi voluntarily dismissed the case. Zantac A number of lawsuits have been filed against Pfizer in various federal and state courts alleging that plaintiffs developed various types of cancer, or face an increased risk of developing cancer, purportedly as a result of the ingestion of Zantac. The significant majority of these cases also name other defendants that have historically manufactured and/or sold Zantac. Pfizer has not sold Zantac since 2006, and only sold an OTC version of the product. In 2006, Pfizer sold the consumer business that included its Zantac OTC rights to Johnson & Johnson and transferred the assets and liabilities related to Zantac OTC to Johnson & Johnson in connection with the sale. Plaintiffs in these cases seek compensatory and punitive damages. In February 2020, the federal actions were transferred for coordinated pre-trial proceedings to a MDL in the U.S. District Court for the Southern District of Florida (the Federal MDL Court). Plaintiffs in the MDL filed against Pfizer and many other defendants a master personal injury complaint, a consolidated consumer class action complaint alleging, among other things, claims under consumer protection statutes of all 50 states, and a medical monitoring complaint seeking to certify medical monitoring classes under the laws of 13 states. In December 2022, the Federal MDL Court granted defendants’ Daubert motions to exclude plaintiffs’ expert testimony and motion for summary judgment on general causation, which has resulted in the dismissal of all complaints in the litigation. Plaintiffs have appealed the Federal MDL Court’s rulings. In addition, (i) Pfizer has received service of Canadian class action complaints naming Pfizer and other defendants, and seeking compensatory and punitive damages for personal injury and economic loss, allegedly arising from the defendants’ sale of Zantac in Canada; and (ii) the State of New Mexico and the Mayor and City Council of Baltimore separately filed civil actions against Pfizer and many other defendants in state courts, alleging various state statutory and common law claims in connection with the defendants’ alleged sale of Zantac in those jurisdictions. In April 2021, a Judicial Council Coordinated Proceeding was created in the Superior Court of California in Alameda County to coordinate personal injury actions against Pfizer and other defendants filed in California state court. Coordinated proceedings have also been created in other state courts. The large majority of the state court cases have been filed in the Superior Court of Delaware in New Castle County. Many of these Zantac-related cases have been outstanding for a number of years and could take many more years to resolve. From time to time, Pfizer has explored and will continue to explore opportunistic settlements of these matters. As of July 2024, Pfizer had settled, or entered into definitive agreements or agreements-in-principle to settle, subject to certain conditions, a substantial majority of the cases filed in state courts in which the plaintiff alleges use of a Pfizer product. The remaining unresolved state court cases continue in various state courts. Chantix Beginning in August 2021, a number of putative class actions have been filed against Pfizer in various U.S. federal courts following Pfizer’s voluntary recall of Chantix due to the presence of a nitrosamine, N-nitroso-varenicline. Plaintiffs assert that they suffered economic harm purportedly as a result of purchasing Chantix or generic varenicline medicines sold by Pfizer. Plaintiffs seek to represent nationwide and state-specific classes and seek various remedies, in |
Segment, Geographic and Other R
Segment, Geographic and Other Revenue Information | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Segment, Geographic and Other Revenue Information | Segment, Geographic and Other Revenue Information A. Segment Information We manage our commercial operations through three operating segments, each led by a single manager: Biopharma, PC1 and Pfizer Ignite. Biopharma is engaged in the discovery, development, manufacture, marketing, sale and distribution of biopharmaceutical products worldwide. PC1 is our contract development and manufacturing organization and a leading supplier of specialty active pharmaceutical ingredients. Pfizer Ignite is an offering that provides strategic guidance and end-to-end R&D services to select innovative biotech companies that align with Pfizer’s R&D focus areas. Prior to June 2024, PC1 and Pfizer Ignite were managed together by a single manager as part of the former Business Innovation operating segment. Biopharma is the only reportable segment. Our commercial divisions market, distribute and sell our products and global operating functions are responsible for the research, development, manufacturing and supply of our products. Each operating segment is supported by our global corporate enabling functions. Our chief operating decision maker uses the revenues and earnings of the operating segments, among other factors, for performance evaluation and resource allocation. We regularly review our segments and the approach used by management to evaluate performance and allocate resources. At the beginning of 2024, we made changes in our commercial organization to incorporate Seagen and improve focus, speed and execution. Specifically, within our Biopharma reportable segment we created the Pfizer Oncology Division, the Pfizer U.S. Commercial Division, and the Pfizer International Commercial Division: • Pfizer Oncology Division combines the U.S. Oncology commercial organizations, global Oncology marketing organizations and global and U.S. Oncology medical affairs from both Pfizer and Seagen. • Pfizer U.S. Commercial Division includes the U.S. Primary Care and U.S. Specialty Care customer groups, the Chief Marketing Office, the Global Chief Medical Affairs Office and Global Access & Value. • Pfizer International Commercial Division includes the ex-U.S. commercial and medical affairs organizations covering Pfizer’s entire product portfolio in all international markets. Beginning January 1, 2024, Biopharma’s earnings include costs related to R&D, medical and safety, manufacturing and supply, and sales and marketing activities that are associated with products in our Biopharma segment. Prior to 2024, costs associated with R&D and medical and safety activities managed by our global ORD and PRD organizations and overhead costs associated with our manufacturing operations were presented as part of Other business activities. We have reclassified our prior period segment information to conform to the current period presentation. Other Business Activities and Reconciling Items–– Other business activities include the operating results of PC1 and Pfizer Ignite as well as certain pre-tax costs not allocated to our operating segment results, such as costs associated with corporate enabling functions and other corporate costs as well as our share of earnings from Haleon. Reconciling items include the following items, transactions and events that are not allocated to our operating segments: (i) all amortization of intangible assets; (ii) acquisition-related items; and (iii) certain significant items, representing substantive and/or unusual, and in some cases recurring, items that are evaluated on an individual basis by management and that, either as a result of their nature or size, would not be expected to occur as part of our normal business on a regular basis. Segment Assets–– We manage our assets on a total company basis, not by operating segment, as our operating assets are shared or commingled. Therefore, our chief operating decision maker does not regularly review any asset information by operating segment and, accordingly, we do not report asset information by operating segment. Total assets were $216 billion as of June 30, 2024 and $227 billion as of December 31, 2023. Selected Statement of Operations Information The following provides selected information by reportable segment: Three Months Ended Six Months Ended Total Revenues Earnings (a) Total Revenues Earnings (a) (MILLIONS) June 30, July 2, June 30, July 2, June 30, July 2, June 30, July 2, Reportable Segment: Biopharma (b) $ 12,991 $ 12,690 $ 5,897 $ 5,042 $ 27,595 $ 30,863 $ 13,519 $ 14,559 Other business activities (c) 292 317 (1,985) (910) 567 630 (3,992) (2,225) Reconciling Items: Amortization of intangible assets (1,307) (1,184) (2,615) (2,287) Acquisition-related items (617) (387) (1,125) (550) Certain significant items (d) (2,091) (293) (2,469) (958) $ 13,283 $ 13,007 $ (103) $ 2,269 $ 28,162 $ 31,492 $ 3,318 $ 8,539 (a) Income/(loss) from continuing operations before provision/(benefit) for taxes on income/(loss). As described above, in connection with the organizational changes effective in the first quarter of 2024, costs associated with R&D and medical and safety activities managed by our global ORD and PRD organizations and overhead costs associated with our manufacturing operations are now included in Biopharma’s earnings. We have reclassified $2.0 billion and $3.4 billion of net costs in the second quarter and first six months of 2023, respectively, from Other business activities to Biopharma to conform to the current period presentation. (b) Biopharma’s revenues and earnings in the first six months of 2024 reflect a non-cash favorable product return adjustment of $771 million recorded in the first quarter of 2024 (see Note 13C ). Biopharma’s earnings also include dividend income from our investment in ViiV of $74 million in the second quarter of 2024 and $91 million in the second quarter of 2023, and $135 million in the first six months of 2024 and $183 million in the first six months of 2023. (c) Other business activities include revenues and costs associated with PC1 and Pfizer Ignite as well as costs that we do not allocate to our operating segments, per above. (d) Certain significant items are substantive and/or unusual, and in some cases recurring, items (as noted above). Earnings in the second quarter and first six months of 2024 includes, among other items, restructuring charges/(credits) and implementation costs and additional depreciation—asset restructuring of $1.2 billion (primarily recorded in Restructuring charges and certain acquisition-related costs ). See Note 3 . B. Geographic Information The following summarizes revenues by geographic area: Three Months Ended Six Months Ended (MILLIONS) June 30, July 2, % June 30, July 2, % United States $ 7,892 $ 6,458 22 $ 17,406 $ 15,169 15 International: Developed Markets 3,164 4,125 (23) 6,362 9,759 (35) Emerging Markets 2,227 2,423 (8) 4,394 6,564 (33) Total revenues $ 13,283 $ 13,007 2 $ 28,162 $ 31,492 (11) C. Other Revenue Information Significant Customers In October 2023, we announced an amended agreement with the U.S. government, which facilitated the transition of Paxlovid to traditional commercial markets in the U.S. starting in November 2023. In connection with this agreement, we recorded a non-cash revenue reversal of $3.5 billion in the fourth quarter of 2023 related to the expected return of an estimated 6.5 million treatment courses of EUA-labeled U.S. government inventory. In the first quarter of 2024, we recorded a non-cash favorable final adjustment of $771 million to reflect 5.1 million EUA-labeled treatment courses returned through February 29, 2024, which were converted to a volume-based credit that will support continued access to Paxlovid through a U.S. government patient assistance program operated by Pfizer. We also agreed to create, in 2024, a U.S. Strategic National Stockpile of 1.0 million treatment courses to enable future pandemic preparedness through 2028, which will be managed and supplied by Pfizer at no cost to the U.S. government or taxpayers. While we are recognizing revenue as the estimated 6.1 million treatment courses are delivered, there is no remaining cash consideration for these treatment courses. Revenues from the U.S. government comprised 7% and 9% of total revenues for the six months ended June 30, 2024 and July 2, 2023, respectively. Revenues from the U.S. government as a percentage of total revenues for the three months ended June 30, 2024 and July 2, 2023 were not material. For information on our significant wholesale customers, see Note 17C in our 2023 Form 10-K. Significant Revenues by Product The following provides detailed revenue information for several of our major products: (MILLIONS) Three Months Ended Six Months Ended PRODUCT PRIMARY INDICATION OR CLASS June 30, July 2, June 30, July 2, TOTAL REVENUES $ 13,283 $ 13,007 $ 28,162 $ 31,492 GLOBAL BIOPHARMACEUTICALS BUSINESS (BIOPHARMA) $ 12,991 $ 12,690 $ 27,595 $ 30,863 Primary Care $ 4,952 $ 5,884 $ 12,163 $ 17,444 Eliquis (a) Nonvalvular atrial fibrillation, deep vein thrombosis, pulmonary embolism 1,877 1,762 3,917 3,636 Prevnar family Active immunization to prevent pneumonia, invasive disease and otitis media caused by Streptococcus pneumoniae 1,359 1,431 3,050 3,033 Paxlovid (b) COVID-19 in certain high-risk patients 251 143 2,286 4,212 Comirnaty Active immunization to prevent COVID-19 195 1,488 548 4,552 Nurtec ODT/Vydura Acute treatment of migraine and prevention of episodic migraine 356 247 533 414 Abrysvo Active immunization to prevent RSV infection 56 — 201 — Premarin family Symptoms of menopause 108 95 193 207 FSME-IMMUN/TicoVac Active immunization to prevent tick-borne encephalitis disease 100 101 165 146 All other Primary Care Various 651 616 1,269 1,244 Specialty Care $ 4,083 $ 3,656 $ 7,926 $ 7,272 Vyndaqel family ATTR-CM and polyneuropathy 1,323 782 2,460 1,468 Xeljanz RA, PsA, UC, active polyarticular course juvenile idiopathic arthritis, ankylosing spondylitis 303 469 497 706 Enbrel (Outside the U.S. and Canada) RA, juvenile idiopathic arthritis, PsA, plaque psoriasis, pediatric plaque psoriasis, ankylosing spondylitis and nonradiographic axial spondyloarthritis 179 219 338 419 Sulperazon Bacterial infections 144 177 311 497 Zavicefta Bacterial infections 150 132 275 248 (MILLIONS) Three Months Ended Six Months Ended PRODUCT PRIMARY INDICATION OR CLASS June 30, July 2, June 30, July 2, Zithromax Bacterial infections 74 44 274 194 Inflectra Crohn’s disease, pediatric Crohn’s disease, UC, pediatric UC, RA in combination with methotrexate, ankylosing spondylitis, PsA and plaque psoriasis 97 74 255 252 Genotropin Replacement of human growth hormone 119 74 239 222 BeneFIX Hemophilia B 103 106 206 215 Octagam Primary humoral immunodeficiency, chronic immune thrombocytopenic purpura in adults, and dermatomyositis in adults 104 66 179 111 Oxbryta Sickle cell disease 92 77 176 148 Cibinqo Atopic dermatitis 47 38 89 54 All other Hospital (c) Various 1,114 1,213 2,188 2,365 All other Specialty Care Various 234 185 440 373 Oncology $ 3,956 $ 3,149 $ 7,505 $ 6,146 Ibrance HR-positive/HER2-negative metastatic breast cancer 1,130 1,247 2,184 2,391 Xtandi (d) mCRPC, nmCRPC, mCSPC, nmCSPC 495 423 913 763 Padcev Locally advanced or metastatic urothelial cancer 394 — 735 — Oncology biosimilars (e) Various 279 363 543 775 Adcetris Hodgkin lymphoma and certain T-cell lymphomas 279 — 536 — Inlyta Advanced RCC 252 262 489 521 Lorbrena ALK-positive metastatic NSCLC 169 121 332 234 Bosulif Philadelphia chromosome–positive chronic myelogenous leukemia 167 154 313 304 Braftovi/Mektovi Metastatic melanoma in patients with a BRAF V600E/K mutation and for metastatic NSCLC in patients with a BRAF V600E mutation; and, for Braftovi, in combination with Erbitux (cetuximab) (f) for the treatment of BRAF V600E -mutant mCRC after prior therapy 148 113 264 215 Tukysa Unresectable or metastatic HER2-positive breast cancer; RAS wild-type, HER2-positive unresectable or metastatic colorectal cancer 121 — 227 — Tivdak Recurrent or metastatic cervical cancer 33 — 60 — Talzenna In combination with Xtandi (enzalutamide) for adult patients with HRR gene-mutated mCRPC; treatment of BRCA gene-mutated, HER2-negative, inoperable or recurrent breast cancer 32 12 55 22 All other Oncology Various 457 455 853 923 PFIZER CENTREONE (g) $ 278 $ 307 $ 535 $ 615 PFIZER IGNITE $ 15 $ 10 $ 32 $ 14 BIOPHARMA $ 12,991 $ 12,690 $ 27,595 $ 30,863 PFIZER U.S. COMMERCIAL DIVISION (U.S. Primary Care and U.S. Specialty Care) 4,911 4,200 11,764 10,815 PFIZER ONCOLOGY DIVISION 2,918 2,167 5,490 4,150 PFIZER INTERNATIONAL COMMERCIAL DIVISION 5,163 6,323 10,341 15,898 Total Alliance revenues included above $ 2,067 $ 1,967 $ 4,240 $ 4,028 Total Royalty revenues included above $ 345 $ 273 $ 608 $ 477 (a) Primarily reflects Alliance revenues and product revenues. (b) The first six months of 2024 includes a $771 million favorable final adjustment recorded in the first quarter of 2024 to the estimated non-cash revenue reversal of $3.5 billion recorded in the fourth quarter of 2023, reflecting 5.1 million EUA-labeled treatment courses returned by the U.S. government through February 29, 2024 versus the estimated 6.5 million treatment courses that were expected to be returned as of December 31, 2023. (c) Includes, among other Hospital products, amounts previously presented as All other Anti-infectives and Ig Portfolio. (d) Primarily reflects Alliance revenues and royalty revenues. (e) Biosimilars are highly similar versions of approved and authorized biological medicines. Oncology biosimilars primarily include Retacrit, Ruxience, Zirabev, Trazimera and Nivestym. (f) Erbitux is a registered trademark of ImClone LLC. (g) PC1 includes revenues from our contract manufacturing and our active pharmaceutical ingredient sales operation, as well as revenues related to our manufacturing and supply agreements with legacy Pfizer businesses/partnerships. Remaining Performance Obligations–– Contracted revenue expected to be recognized from remaining performance obligations for firm orders in long-term contracts to supply Comirnaty and Paxlovid to our customers totaled approximately $6 billion and $2 billion, respectively, as of June 30, 2024, which includes amounts received in advance and deferred, as well as amounts that will be invoiced as we deliver these products to our customers in future periods. Of these amounts, current contract terms provide for expected delivery of product with contracted revenue from 2024 through 2028. Remaining performance obligations are based on foreign exchange rates as of the end of our fiscal second quarter of 2024 and exclude arrangements with an original expected contract duration of less than one year. Remaining performance obligations associated with contracts for other products and services were not significant as of June 30, 2024 or December 31, 2023. Deferred Revenues–– Our deferred revenues primarily relate to advance payments received or receivable from various government or government sponsored customers for supply of Paxlovid and Comirnaty. The deferred revenues related to Paxlovid and Comirnaty totaled $4.3 billion as of June 30, 2024, with $2.5 billion and $1.8 billion recorded in current liabilities and noncurrent liabilities, respectively. The deferred revenues related to Paxlovid and Comirnaty totaled $5.1 billion as of December 31, 2023, with $2.6 billion and $2.5 billion recorded in current liabilities and noncurrent liabilities, respectively. The decrease in Paxlovid and Comirnaty deferred revenues during the first six months of 2024 was primarily driven by a $771 million favorable final adjustment recorded in the first quarter of 2024 to the estimated non-cash Paxlovid revenue reversal recorded in the fourth quarter of 2023, as well as amounts recognized in Product revenues as we delivered the products to our customers, partially offset by additional advance payments received in the first six months of 2024 as we entered into amended contracts. During the second quarter and first six months of 2024, we recognized revenue of approximately $200 million and $1.2 billion, respectively, that was included in the balance of Paxlovid and Comirnaty deferred revenues as of December 31, 2023, including the aforementioned $771 million non-cash Paxlovid adjustment. The Paxlovid and Comirnaty deferred revenues as of June 30, 2024 will be recognized in Product revenues proportionately as we transfer control of the products to our customers and satisfy our performance obligations under the contracts, with the amounts included in current liabilities expected to be recognized in Product revenues within the next 12 months, and the amounts included in noncurrent liabilities expected to be recognized in Product revenues from 2025 through 2028. Deferred revenues associated with contracts for other products were not significant as of June 30, 2024 or December 31, 2023. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | |
Pay vs Performance Disclosure | ||||
Income attributable to shareholders | $ 41 | $ 2,327 | $ 3,156 | $ 7,870 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
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 and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation We prepared these condensed consolidated financial statements in conformity with U.S. GAAP, consistent in all material respects with those applied in our 2023 Form 10-K. As permitted under the SEC requirements for interim reporting, certain footnotes or other financial information have been condensed or omitted. These financial statements include all normal and recurring adjustments that are considered necessary for the fair statement of results for the interim periods presented. The information included in this Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in our 2023 Form 10-K . Revenues, expenses, assets and liabilities can vary during each quarter of the year. Therefore, the results and trends in these interim financial statements may not be representative of those for the full year. Pfizer’s fiscal quarter-end for subsidiaries operating outside the U.S. is as of and for the three and six months ended May 26, 2024 and May 28, 2023, and for U.S. subsidiaries is as of and for the three and six months ended June 30, 2024 and July 2, 2023. We manage our commercial operations through three operating segments, each led by a single manager: Biopharma, PC1 and Pfizer Ignite. Biopharma is the only reportable segment. See Note 13A |
Reclassification Adjustments | We have made certain reclassification adjustments to conform prior-period amounts to the current presentation for: • in the first quarter of 2024, we reclassified royalty income (substantially all of which is related to Biopharma) from Other (income)/deductions––net and began presenting Royalty revenues as a separate line item within Total revenues in our consolidated statements of operations, and reclassified the associated royalty receivables from Other current assets to Trade accounts receivable, less allowance for doubtful accounts in our consolidated balance sheet; • in the fourth quarter of 2023, we began presenting Product revenues and Alliance revenues as separate line items within Total revenues in our consolidated statements of operations; and • segment reporting and geographic information in connection with the commercial reorganization that went into effect on January 1, 2024 (see Note 13 ). Business development activities, including the December 2023 acquisition of Seagen, impacted financial results in the periods presented. See Note 2 below, as well as Notes 1A and 2 in our 2023 Form 10-K. |
New Accounting Standard Adopted in 2024 | New Accounting Standard Adopted in 2024 On January 1, 2024, we adopted a new accounting standard which clarifies that contractual sale restrictions are not considered in measuring equity securities at fair value. The new guidance is consistent with our existing policy; therefore, it had no impact on our consolidated financial statements. |
Revenues and Trade Accounts Receivable | Revenues and Trade Accounts Receivable Customers–– Our prescription biopharmaceutical products, with the exception of Paxlovid in 2023, are sold principally to wholesalers, but we also sell directly to retailers, hospitals, clinics, government agencies and pharmacies. We principally sold Paxlovid globally to government agencies in 2023. Our vaccines in the U.S. are primarily sold directly to the federal government (including the CDC), wholesalers, individual provider offices, retail pharmacies and integrated delivery systems. Our vaccines outside the U.S. are primarily sold to government and non-government institutions. Certain products in our portfolio are subject to seasonality of demand and Paxlovid revenues trend with infection rates. Deductions from Revenues–– Our accruals for Medicare, Medicaid and related state program and performance-based contract rebates, chargebacks, sales allowances and sales returns and cash discounts are as follows: (MILLIONS) June 30, December 31, 2023 Reserve against Trade accounts receivable, less allowance for doubtful accounts $ 1,578 $ 1,770 Other current liabilities : Accrued rebates 6,726 5,546 Other accruals 529 902 Other noncurrent liabilities 569 796 Total accrued rebates and other sales-related accruals $ 9,401 $ 9,014 Trade Accounts Receivable–– Trade accounts receivable are stated at their net realizable value. The allowance for credit losses reflects our best estimate of expected credit losses of the receivables portfolio determined on the basis of historical experience, current information, and forecasts of future economic conditions. In developing the estimate for expected credit losses, trade accounts receivables are segmented into pools of assets depending on market (U.S. versus international), delinquency status, and customer type (high risk versus low risk and government versus non-government), and fixed reserve percentages are established for each pool of trade accounts receivables. In determining the reserve percentages for each pool of trade accounts receivables, we considered our historical experience with certain customers and customer types, regulatory and legal environments, country and political risk, and other relevant current and future forecasted macroeconomic factors. When management becomes aware of certain customer-specific factors that impact credit risk, specific allowances for these known troubled accounts are recorded. During the three and six months ended June 30, 2024 and July 2, 2023, additions to the allowance for credit losses, write-offs and recoveries of customer receivables were not material to our condensed consolidated financial statements. For additional information on our trade accounts receivable, see Note 1G in our 2023 Form 10-K. |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Balance Sheet Classification of Accruals | Our accruals for Medicare, Medicaid and related state program and performance-based contract rebates, chargebacks, sales allowances and sales returns and cash discounts are as follows: (MILLIONS) June 30, December 31, 2023 Reserve against Trade accounts receivable, less allowance for doubtful accounts $ 1,578 $ 1,770 Other current liabilities : Accrued rebates 6,726 5,546 Other accruals 529 902 Other noncurrent liabilities 569 796 Total accrued rebates and other sales-related accruals $ 9,401 $ 9,014 |
Acquisition and Equity-Method_2
Acquisition and Equity-Method Investment (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Business Combinations and Equity Method Investments [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the provisional amounts recognized for assets acquired and liabilities assumed as of the acquisition date, including adjustments made in the first six months of 2024 (measurement period adjustments) with a corresponding change to goodwill. The estimated values are not yet finalized (see below) and are subject to change, which could be significant. We will finalize the amounts recognized as soon as possible but no later than one year from the acquisition date. (MILLIONS) Amounts Recognized as of Acquisition Date (as previously reported as of December 31, 2023) Measurement Period Adjustments (a) Amounts Recognized as of Acquisition Date (as adjusted) Working capital, excluding inventories $ 736 $ (184) $ 552 Inventories (b) 4,195 (891) 3,304 Property, plant and equipment 524 (233) 291 Identifiable intangible assets, excluding in-process research and development (c) 7,970 (575) 7,395 In-process research and development 20,800 (50) 20,750 Other noncurrent assets 174 (106) 67 Net income tax accounts (6,123) 1,313 (4,810) Other noncurrent liabilities (167) 50 (117) Total identifiable net assets 28,108 (677) 27,431 Goodwill 16,126 677 16,803 Net assets acquired/total consideration transferred $ 44,234 $ — $ 44,234 (a) The changes in the estimated fair values are primarily to better reflect market participant assumptions about facts and circumstances existing as of the acquisition date. The measurement period adjustments did not result from intervening events subsequent to the acquisition date. (b) As adjusted, comprised of $1.2 billion current inventories and $2.1 billion noncurrent inventories. (c) As adjusted, comprised mainly of $6.9 billion of finite-lived developed technology rights with an estimated weighted-average life of approximately 18 years. |
Schedule of Pro Forma Information | The following table provides unaudited U.S. GAAP supplemental pro forma information as if the acquisition of Seagen had occurred on January 1, 2022: Unaudited Supplemental Pro Forma Consolidated Results Three Months Ended Six Months Ended (MILLIONS, EXCEPT PER SHARE DATA) July 2, July 2, Revenues $ 13,611 $ 32,616 Net income attributable to Pfizer Inc. common shareholders 1,389 6,040 Diluted earnings per share attributable to Pfizer Inc. common shareholders 0.24 1.06 |
Equity Method Investment | The following table summarizes the change in the carrying value of our investment in Haleon: Three Months Ended Six Months Ended (MILLIONS) June 30, July 2, June 30, July 2, Beginning carrying value reported in Equity-method investments $ 7,922 $ 10,980 $ 11,451 $ 10,824 Carrying value of shares sold — — (3,312) — Dividends (157) (88) (157) (88) Currency translation adjustments and other (a) 1 185 (130) 274 Basis difference adjustments and amortization (b), (c) (1) — (101) (1) Pfizer share of Haleon investee capital transaction (b), (d) (91) — (91) — Pfizer share of Haleon earnings (b) 121 151 136 219 Ending carrying value reported in Equity-method investments $ 7,796 $ 11,228 $ 7,796 $ 11,228 (a) See Note 6 . (b) Included in Other (income)/deductions –– net . (c) Adjustments in the six months ended June 30, 2024 are associated with (i) the impact of Haleon’s brand divestitures and impairments of intangible assets and (ii) changes in Haleon’s tax rates on intangible asset-related deferred tax liabilities. See Note 4 . (d) Amounts for the three and six months ended June 30, 2024 relate to Pfizer’s share of an investee capital transaction recognized by Haleon for treasury stock Haleon purchased in the first quarter of 2024. Summarized financial information for Haleon for the three and six months ending March 31, 2024, the most recent period available, and for the three and six months ending March 31, 2023, is as follows: Three Months Ended Six Months Ended (MILLIONS) March 31, March 31, March 31, March 31, Net sales $ 3,699 $ 3,627 $ 7,133 $ 6,889 Cost of sales (1,370) (1,392) (2,966) (2,888) Gross profit $ 2,329 $ 2,235 $ 4,167 $ 4,001 Income from continuing operations 559 504 618 730 Net income 559 504 618 730 Income attributable to shareholders 536 473 583 684 |
Restructuring Charges and Oth_2
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Acquisitions and Cost-Reduction/Productivity Initiatives | The following summarizes costs and credits for acquisitions and cost-reduction/productivity initiatives: Three Months Ended Six Months Ended (MILLIONS) June 30, July 2, June 30, July 2, Restructuring charges/(credits): Employee terminations $ 1,014 $ 96 $ 984 $ 61 Asset impairments 41 15 66 4 Exit costs 49 27 63 29 Restructuring charges/(credits) (a) 1,104 138 1,114 94 Transaction costs (b) — 8 5 8 Integration costs and other (c) 150 68 237 120 Restructuring charges and certain acquisition-related costs 1,254 214 1,356 222 Net periodic benefit costs/(credits) recorded in Other (income)/deductions––net 2 (2) 5 (7) Additional depreciation––asset restructuring recorded in our condensed consolidated statements of operations as follows (d): Cost of sales 1 4 5 22 Selling, informational and administrative expenses 3 — 3 — Total additional depreciation––asset restructuring 4 4 8 23 Implementation costs recorded in our condensed consolidated statements of operations as follows (e) : Cost of sales 49 13 65 27 Selling, informational and administrative expenses 36 67 65 126 Research and development expenses 20 19 33 30 Total implementation costs 105 98 163 183 Total costs associated with acquisitions and cost-reduction/productivity initiatives $ 1,364 $ 313 $ 1,532 $ 420 (a) Primarily represents cost-reduction initiatives. Amounts associated with our Biopharma segment: charges of $1.1 billion for both the three and six months ended June 30, 2024 (including charges of $1.3 billion for our Manufacturing Optimization Program for both periods presented and credits of $113 million for the three months and $199 million for the six months ended June 30, 2024 for our Realigning our Cost Base Program). Amounts associated with our Biopharma segment for the three and six months ended July 2, 2023 were not material. (b) Represents external costs for banking, legal, accounting and other similar services. (c) Represents external, incremental costs directly related to integrating acquired businesses, such as expenditures for consulting and the integration of systems and processes, and certain other qualifying costs. (d) Represents the impact of changes in the estimated useful lives of assets involved in restructuring actions. (e) Represents external, incremental costs directly related to implementing our non-acquisition-related cost-reduction/productivity initiatives. |
Schedule of Components and Changes in Restructuring Accruals | The following summarizes the components and changes in restructuring accruals: (MILLIONS) Employee Asset Exit Costs Accrual Balance, December 31, 2023 (a) $ 1,978 $ — $ 11 $ 1,988 Provision/(credit) 984 66 63 1,114 Utilization and other (b) (592) (66) (45) (703) Balance, June 30, 2024 (c) $ 2,370 $ — $ 29 $ 2,399 (a) Included in Other current liabilities ($1.3 billion) and Other noncurrent liabilities ($663 million). (b) Other activity includes adjustments for foreign currency translation that are not material to our condensed consolidated financial statements. (c) Included in Other current liabilities ($1.0 billion) and Other noncurrent liabilities ($1.4 billion). |
Other (Income)_Deductions_Net (
Other (Income)/Deductions—Net (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Other Income and Expenses [Abstract] | |
Schedule of Other (Income)/Deductions - Net | Components of Other (income)/deductions––net include: Three Months Ended Six Months Ended (MILLIONS) June 30, July 2, June 30, July 2, Interest income $ (130) $ (316) $ (259) $ (493) Interest expense 778 508 1,568 826 Net interest expense (a) 648 192 1,310 333 Net (gains)/losses recognized during the period on equity securities 342 (135) 317 316 Income from collaborations, out-licensing arrangements and sales of compound/product rights (22) (7) (24) (74) Net periodic benefit costs/(credits) other than service costs (106) (88) (209) (168) Certain legal matters, net (b) 169 139 377 175 Certain asset impairments (c) 240 — 349 264 Haleon equity method (income)/loss (d) (40) (156) 48 (224) Other, net (e) (124) (20) (381) (423) Other (income)/deductions––net $ 1,107 $ (75) $ 1,787 $ 200 (a) The increase in net interest expense in the second quarter and first six months of 2024 reflects (i) higher interest expense driven by our $31 billion aggregate principal amount of senior unsecured notes issued in May 2023, as well as $8 billion of commercial paper issued in the fourth quarter of 2023 as part of the financing for our acquisition of Seagen and (ii) a decrease in interest income due to lower investment balances after completion of our $43.4 billion Seagen acquisition in December 2023. (b) The second quarter and first six months of 2024 primarily include certain product liability expenses related to products discontinued and/or divested by Pfizer. The second quarter and first six months of 2023 primarily included certain product liability and other legal expenses related to products discontinued and/or divested by Pfizer. (c) The second quarter and first six months of 2024 include a $240 million intangible asset impairment charge, associated with our Biopharma segment that represents IPR&D related to a Phase 3 study for the treatment of DMD, which reflects unfavorable clinical trial results. The first six months of 2023 primarily represented intangible asset impairment charges, including (i) $128 million associated with Other business activities, related to IPR&D and developed technology rights for acquired software assets and reflected unfavorable pivotal trial results and updated commercial forecasts, and (ii) $120 million associated with our Biopharma segment resulting from the discontinuation of a study related to an out-licensed IPR&D asset for the treatment of prostate cancer. (d) See Note 2B . (e) The second quarter of 2024 primarily includes, among other things, dividend income of $74 million from our investment in ViiV. The first six months of 2024 includes, among other things, a $150 million gain on the partial sale of our investment in Haleon and dividend income of $135 million from our investment in ViiV. The first six months of 2023 primarily included, among other things, dividend income of $211 million from our investment in Nimbus resulting from Takeda’s acquisition of Nimbus’s oral, selective allosteric tyrosine kinase 2 (TYK2) inhibitor program subsidiary, and $183 million from our investment in ViiV. |
Schedule of Impaired Intangible Assets | Additional information about the intangible assets that were impaired during 2024 follows: Six Months Ended Fair Value (a) June 30, 2024 (MILLIONS) Amount Level 1 Level 2 Level 3 Impairment Intangible assets–– IPR&D (b) $ — $ — — $ — $ 240 Intangible assets––Developed technology rights (b) 102 — — 102 109 Total $ 102 $ — $ — $ 102 $ 349 (a) The fair value amount is presented as of the date of impairment, as this asset is not measured at fair value on a recurring basis. See also Note 1E in our 2023 Form 10-K . (b) Reflects intangible assets written down to fair value in 2024. Fair value was determined using the income approach, specifically the multi-period excess earnings method, also known as the discounted cash flow method. We started with a forecast of all the expected net cash flows for the asset and then applied an asset-specific discount rate to arrive at a net present value amount. Some of the more significant estimates and assumptions inherent in this approach include: the amount and timing of the projected net cash flows, which includes the expected impact of competitive, legal and/or regulatory forces on the product; the discount rate, which seeks to reflect the various risks inherent in the projected cash flows; and the tax rate, which seeks to incorporate the geographic diversity of the projected cash flows. |
Tax Matters (Tables)
Tax Matters (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Schedule of Tax Provision/(Benefit) on Other Comprehensive Income (Loss) | Components of Tax provision/(benefit) on other comprehensive income/(loss) include: Three Months Ended Six Months Ended (MILLIONS) June 30, July 2, June 30, July 2, Foreign currency translation adjustments, net (a) $ 18 $ 20 $ 42 $ (5) Unrealized holding gains/(losses) on derivative financial instruments, net 26 25 70 28 Reclassification adjustments for (gains)/losses included in net income (23) (33) (26) (12) 3 (8) 44 16 Unrealized holding gains/(losses) on available-for-sale securities, net (3) 3 (9) 14 Reclassification adjustments for (gains)/losses included in net income 12 2 11 (62) 9 5 1 (47) Reclassification adjustments related to amortization of prior service costs and other, net (9) (7) (13) (14) Reclassification adjustments related to curtailments of prior service costs and other, net 1 (1) 1 (3) (7) (8) (12) (17) Tax provision/(benefit) on other comprehensive income/(loss) $ 22 $ 9 $ 76 $ (53) (a) Taxes are not provided for foreign currency translation adjustments relating to investments in international subsidiaries that we intend to hold indefinitely. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss, Excluding Noncontrolling Interests (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Loss | The following summarizes the changes, net of tax, in Accumulated other comprehensive loss : Net Unrealized Gains/(Losses) Benefit Plans (MILLIONS) Foreign Currency Translation Adjustments (a) Derivative Financial Instruments Available-For-Sale Securities Prior Service (Costs)/Credits and Other Accumulated Other Comprehensive Income/(Loss) Balance, December 31, 2023 $ (7,863) $ (217) $ (9) $ 128 $ (7,961) Other comprehensive income/(loss) (b) 41 140 8 (44) 145 Balance, June 30, 2024 $ (7,822) $ (77) $ (1) $ 84 $ (7,816) (a) Amounts do not include foreign currency translation adjustments attributable to noncontrolling interests. (b) Foreign currency translation adjustments include net gains related to the impact of our net investment hedging program and net losses related to our equity-method investment in Haleon (see Note 2B ). |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Measured At Fair Value On a Recurring Basis | Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis and Fair Value Hierarchy, using a Market Approach: June 30, 2024 December 31, 2023 (MILLIONS) Total Level 1 Level 2 Total Level 1 Level 2 Financial assets: Short-term investments Equity securities with readily determinable fair values: Money market funds $ 975 $ — $ 975 $ 5,124 $ — $ 5,124 Available-for-sale debt securities: Government and agency—non-U.S. 1,120 — 1,120 817 — 817 Government and agency—U.S. 2,073 — 2,073 2,601 — 2,601 Corporate and other 1,208 — 1,208 982 — 982 4,401 — 4,401 4,400 — 4,400 Total short-term investments 5,376 — 5,376 9,524 — 9,524 Other current assets Derivative assets: Foreign exchange contracts 421 — 421 298 — 298 Total other current assets 421 — 421 298 — 298 Long-term investments Equity securities with readily determinable fair values (a) 2,210 2,210 — 2,779 2,772 7 Available-for-sale debt securities: Government and agency—non-U.S. 63 — 63 124 — 124 Corporate and other 6 — 6 26 — 26 69 — 69 150 — 150 Total long-term investments 2,280 2,210 70 2,929 2,772 156 Other noncurrent assets Derivative assets: Interest rate contracts 19 — 19 144 — 144 Foreign exchange contracts 354 — 354 258 — 258 Total derivative assets 374 — 374 402 — 402 Insurance contracts (b) 872 — 872 790 — 790 Total other noncurrent assets 1,246 — 1,246 1,191 — 1,191 Total assets $ 9,322 $ 2,210 $ 7,112 $ 13,943 $ 2,772 $ 11,170 Financial liabilities: Other current liabilities Derivative liabilities: Interest rate contracts $ 33 $ — $ 33 $ 16 $ — $ 16 Foreign exchange contracts 139 — 139 404 — 404 Total other current liabilities 172 — 172 420 — 420 Other noncurrent liabilities Derivative liabilities: Interest rate contracts 375 — 375 275 — 275 Foreign exchange contracts 682 — 682 725 — 725 Total other noncurrent liabilities 1,056 — 1,056 1,000 — 1,000 Total liabilities $ 1,228 $ — $ 1,228 $ 1,420 $ — $ 1,420 (a) Long-term equity securities of $119 million as of June 30, 2024 and $130 million as of December 31, 2023 were held in restricted trusts for U.S. non-qualified employee benefit plans. (b) Includes life insurance policies held in restricted trusts for U.S. non-qualified employee benefit plans. The underlying invested assets in these contracts are marketable securities, which are carried at fair value, with changes in fair value recognized in Other (income)/deductions—net (see Note 4 ). |
Investments by Classification Type | The following summarizes our investments by classification type: (MILLIONS) June 30, December 31, 2023 Short-term investments Equity securities with readily determinable fair values (a) $ 975 $ 5,124 Available-for-sale debt securities 4,401 4,400 Held-to-maturity debt securities 673 313 Total Short-term investments $ 6,048 $ 9,837 Long-term investments Equity securities with readily determinable fair values (b) $ 2,210 $ 2,779 Available-for-sale debt securities 69 150 Held-to-maturity debt securities 54 47 Private equity securities at cost (b) 786 755 Total Long-term investments $ 3,119 $ 3,731 Equity-method investments 8,029 11,637 Total long-term investments and equity-method investments $ 11,149 $ 15,368 Held-to-maturity cash equivalents $ 317 $ 207 (a) Represent money market funds primarily invested in U.S. Treasury and government debt. (b) Represent investments in the life sciences sector. |
Schedule of Held-to-maturity Securities | Our investment portfolio consists of investment-grade debt securities issued across diverse governments, corporate and financial institutions: June 30, 2024 December 31, 2023 Gross Unrealized Contractual or Estimated Maturities (in Years) Gross Unrealized (MILLIONS) Amortized Cost Gains Losses Fair Value Within 1 Over 1 Over 5 Amortized Cost Gains Losses Fair Value Available-for-sale debt securities Government and agency –– non-U.S. $ 1,184 $ 4 $ (6) $ 1,183 $ 1,120 $ 63 $ — $ 953 $ 2 $ (14) $ 941 Government and agency––U.S. 2,073 — — 2,073 2,073 — — 2,601 — — 2,601 Corporate and other 1,213 2 (2) 1,214 1,208 6 — 1,006 4 (2) 1,007 Held-to-maturity debt securities Time deposits and other 942 — — 942 892 28 21 561 — — 561 Government and agency –– non-U.S. 102 — — 102 98 4 1 4 — — 4 Total debt securities $ 5,515 $ 6 $ (7) $ 5,514 $ 5,391 $ 101 $ 22 $ 5,126 $ 6 $ (16) $ 5,115 |
Schedule of Available-for-sale Securities | Our investment portfolio consists of investment-grade debt securities issued across diverse governments, corporate and financial institutions: June 30, 2024 December 31, 2023 Gross Unrealized Contractual or Estimated Maturities (in Years) Gross Unrealized (MILLIONS) Amortized Cost Gains Losses Fair Value Within 1 Over 1 Over 5 Amortized Cost Gains Losses Fair Value Available-for-sale debt securities Government and agency –– non-U.S. $ 1,184 $ 4 $ (6) $ 1,183 $ 1,120 $ 63 $ — $ 953 $ 2 $ (14) $ 941 Government and agency––U.S. 2,073 — — 2,073 2,073 — — 2,601 — — 2,601 Corporate and other 1,213 2 (2) 1,214 1,208 6 — 1,006 4 (2) 1,007 Held-to-maturity debt securities Time deposits and other 942 — — 942 892 28 21 561 — — 561 Government and agency –– non-U.S. 102 — — 102 98 4 1 4 — — 4 Total debt securities $ 5,515 $ 6 $ (7) $ 5,514 $ 5,391 $ 101 $ 22 $ 5,126 $ 6 $ (16) $ 5,115 |
Contractual Maturities of Available-for-sale and Held-to-maturity Debt Securities | Our investment portfolio consists of investment-grade debt securities issued across diverse governments, corporate and financial institutions: June 30, 2024 December 31, 2023 Gross Unrealized Contractual or Estimated Maturities (in Years) Gross Unrealized (MILLIONS) Amortized Cost Gains Losses Fair Value Within 1 Over 1 Over 5 Amortized Cost Gains Losses Fair Value Available-for-sale debt securities Government and agency –– non-U.S. $ 1,184 $ 4 $ (6) $ 1,183 $ 1,120 $ 63 $ — $ 953 $ 2 $ (14) $ 941 Government and agency––U.S. 2,073 — — 2,073 2,073 — — 2,601 — — 2,601 Corporate and other 1,213 2 (2) 1,214 1,208 6 — 1,006 4 (2) 1,007 Held-to-maturity debt securities Time deposits and other 942 — — 942 892 28 21 561 — — 561 Government and agency –– non-U.S. 102 — — 102 98 4 1 4 — — 4 Total debt securities $ 5,515 $ 6 $ (7) $ 5,514 $ 5,391 $ 101 $ 22 $ 5,126 $ 6 $ (16) $ 5,115 |
Schedule of Gains and Losses on Investment Securities | The following presents the calculation of the portion of unrealized (gains)/losses that relates to equity securities, excluding equity-method investments, held at the reporting date: Three Months Ended Six Months Ended (MILLIONS) June 30, July 2, June 30, July 2, Net (gains)/losses recognized during the period on equity securities (a) $ 342 $ (135) $ 317 $ 316 Less: Net (gains)/losses recognized during the period on equity securities sold during the period (2) (14) (216) (47) Net unrealized (gains)/losses during the reporting period on equity securities still held at the reporting date (b) $ 344 $ (121) $ 533 $ 363 (a) Reported in Other (income)/deductions –– net. See Note 4 . (b) Included in net unrealized (gains)/losses are observable price changes on equity securities without readily determinable fair values. As of June 30, 2024, there were cumulative impairments and downward adjustments of $306 million and upward adjustments of $214 million. Impairments, downward and upward adjustments were not material to our operations in the second quarters and first six months of 2024 and 2023. |
Schedule of Short-term Borrowings | Short-term borrowings include: (MILLIONS) June 30, December 31, 2023 Commercial paper, principal amount $ 7,964 $ 7,965 Current portion of long-term debt, principal amount 3,750 2,250 Other short-term borrowings, principal amount (a) 320 252 Total short-term borrowings, principal amount 12,034 10,467 Net fair value adjustments related to hedging and purchase accounting — 5 Net unamortized discounts, premiums and debt issuance costs (90) (121) Total Short-term borrowings, including current portion of long-term debt , carried at historical proceeds, as adjusted $ 11,944 $ 10,350 (a) Primarily includes cash collateral. See Note 7F . |
Schedule of Principal Amounts of Senior Unsecured Long-Term Debt and Adjustments | The following summarizes the aggregate principal amount of our senior unsecured long-term debt, and adjustments to report our aggregate long-term debt: (MILLIONS) June 30, December 31, 2023 Total long-term debt, principal amount $ 57,193 $ 60,982 Net fair value adjustments related to hedging and purchase accounting 773 1,039 Net unamortized discounts, premiums and debt issuance costs (460) (483) Total long-term debt, carried at historical proceeds, as adjusted $ 57,506 $ 61,538 |
Schedule of Derivative Instruments | The following summarizes the fair value of the derivative financial instruments and notional amounts: June 30, 2024 December 31, 2023 Fair Value Fair Value (MILLIONS) Notional Asset Liability Notional Asset Liability Derivatives designated as hedging instruments : Foreign exchange contracts (a) $ 22,740 $ 678 $ 704 $ 18,750 $ 403 $ 916 Interest rate contracts 6,750 19 408 6,750 144 290 698 1,112 546 1,206 Derivatives not designated as hedging instruments : Foreign exchange contracts $ 22,055 97 116 $ 25,609 154 214 Total $ 795 $ 1,228 $ 700 $ 1,420 (a) The notional amount of outstanding foreign exchange contracts hedging our intercompany forecasted inventory sales was $5.6 billion as of June 30, 2024 and $4.9 billion as of December 31, 2023. |
Schedule of Derivative Assets | The following summarizes the fair value of the derivative financial instruments and notional amounts: June 30, 2024 December 31, 2023 Fair Value Fair Value (MILLIONS) Notional Asset Liability Notional Asset Liability Derivatives designated as hedging instruments : Foreign exchange contracts (a) $ 22,740 $ 678 $ 704 $ 18,750 $ 403 $ 916 Interest rate contracts 6,750 19 408 6,750 144 290 698 1,112 546 1,206 Derivatives not designated as hedging instruments : Foreign exchange contracts $ 22,055 97 116 $ 25,609 154 214 Total $ 795 $ 1,228 $ 700 $ 1,420 (a) The notional amount of outstanding foreign exchange contracts hedging our intercompany forecasted inventory sales was $5.6 billion as of June 30, 2024 and $4.9 billion as of December 31, 2023. |
Schedule of Derivative Liabilities | The following summarizes the fair value of the derivative financial instruments and notional amounts: June 30, 2024 December 31, 2023 Fair Value Fair Value (MILLIONS) Notional Asset Liability Notional Asset Liability Derivatives designated as hedging instruments : Foreign exchange contracts (a) $ 22,740 $ 678 $ 704 $ 18,750 $ 403 $ 916 Interest rate contracts 6,750 19 408 6,750 144 290 698 1,112 546 1,206 Derivatives not designated as hedging instruments : Foreign exchange contracts $ 22,055 97 116 $ 25,609 154 214 Total $ 795 $ 1,228 $ 700 $ 1,420 (a) The notional amount of outstanding foreign exchange contracts hedging our intercompany forecasted inventory sales was $5.6 billion as of June 30, 2024 and $4.9 billion as of December 31, 2023. |
Information about Gains/(Losses) Incurred to Hedge or Offset Operational Foreign Exchange or Interest Rate Risk | The following summarizes information about the gains/(losses) incurred to hedge or offset operational foreign exchange or interest rate risk exposures: Gains/(Losses) (a) Gains/(Losses) (a) Gains/(Losses) Reclassified from OCI into OID and COS (a) Three Months Ended (MILLIONS) June 30, July 2, June 30, July 2, June 30, July 2, Derivative Financial Instruments in Cash Flow Hedge Relationships: Interest rate contracts $ — $ — $ — $ 68 $ — $ — Foreign exchange contracts (b) — — 117 6 137 126 Amount excluded from effectiveness testing and amortized into earnings (c) — — 10 34 10 37 Derivative Financial Instruments in Fair Value Hedge Relationships: Interest rate contracts (36) (45) — — — — Hedged item 36 45 — — — — Derivative Financial Instruments in Net Investment Hedge Relationships: Foreign exchange contracts — — 81 (70) — — Amount excluded from effectiveness testing and amortized into earnings (c) — — 31 9 40 33 Non-Derivative Financial Instruments in Net Investment Hedge Relationships (d) : Foreign currency long-term debt — — 8 (1) — — Derivative Financial Instruments Not Designated as Hedges: Foreign exchange contracts (13) 99 — — — — $ (13) $ 99 $ 247 $ 47 $ 187 $ 196 Gains/(Losses) (a) Gains/(Losses) (a) Gains/(Losses) Reclassified from OCI into OID and COS (a) Six Months Ended (MILLIONS) June 30, July 2, June 30, July 2, June 30, July 2, Derivative Financial Instruments in Cash Flow Hedge Relationships: Interest rate contracts $ — $ — $ — $ 68 $ — $ — Foreign exchange contracts (b) — — 327 (47) 142 (230) Amount excluded from effectiveness testing and amortized into earnings (c) — — 17 90 17 90 Derivative Financial Instruments in Fair Value Hedge Relationships: Interest rate contracts (224) 3 — — — — Hedged item 224 (3) — — — — Derivative Financial Instruments in Net Investment Hedge Relationships: Foreign exchange contracts — — 315 (283) — — Amount excluded from effectiveness testing and amortized into earnings (c) — — 52 76 76 67 Non-Derivative Financial Instruments in Net Investment Hedge Relationships (d) : Foreign currency long-term debt — — 26 (17) — — Derivative Financial Instruments Not Designated as Hedges: Foreign exchange contracts 42 116 — — — — $ 42 $ 116 $ 737 $ (113) $ 235 $ (73) (a) OID = Other (income)/deductions—net, included in Other (income)/deductions—net in the condensed consolidated statements of operations . COS = Cost of Sales, included in Cost of sales in the condensed consolidated statements of operations. OCI = Other comprehensive income/(loss), included in the condensed consolidated statements of comprehensive income/(loss) . (b) The amounts reclassified from OCI into COS were: • a net gain of $38 million in the second quarter of 2024; • a net gain of $70 million in the first six months of 2024; • a net gain of $55 million in the second quarter of 2023; and • a net gain of $146 million in the first six months of 2023. The remaining amounts were reclassified from OCI into OID. Based on quarter-end foreign exchange rates that are subject to change, we expect to reclassify a pre-tax gain of $157 million within the next 12 months into income . The maximum length of time over which we are hedging our exposure to the variability in future foreign exchange cash flows is approximately 19 years and relates to foreign currency debt. (c) The amounts reclassified from OCI were reclassified into OID. (d) Long-term debt includes foreign currency borrowings, which are used in net investment hedges; the related carrying values as of June 30, 2024 and December 31, 2023 were $799 million and $824 million, respectively. |
Schedule of Total Amount of Each Income and Expense Line in which Results of Fair Value Hedges are Recorded | The following summarizes cumulative basis adjustments to our long-term debt in fair value hedges: June 30, 2024 December 31, 2023 Cumulative Amount of Fair Value Hedging Adjustment Increase/(Decrease) to Cumulative Amount of Fair Value Hedging Adjustment Increase/(Decrease) to (MILLIONS) Carrying Amount of Hedged Assets/Liabilities (a) Active Hedging Relationships Discontinued Hedging Relationships Carrying Amount of Hedged Assets/Liabilities (a) Active Hedging Relationships Discontinued Hedging Relationships Long-term debt $ 7,175 $ (355) $ 924 $ 7,196 $ (131) $ 957 (a) Carrying amounts exclude the cumulative amount of fair value hedging adjustments. |
Other Financial Information (Ta
Other Financial Information (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Other Financial Information [Abstract] | |
Schedule of Components of Inventories, Current | The following summarizes the components of Inventories : (MILLIONS) June 30, December 31, 2023 Finished goods $ 3,220 $ 3,495 Work-in-process 7,072 5,688 Raw materials and supplies 1,156 1,007 Inventories (a) $ 11,447 $ 10,189 Noncurrent inventories not included above (b) $ 2,918 $ 4,568 (a) The increase from December 31, 2023 reflects higher inventory levels for certain products mainly for supply recovery and network strategy. (b) Included in Other noncurrent assets . The decrease from December 31, 2023 is primarily driven by an adjustment to the fair value step-up of acquired Seagen inventory. Based on our current estimates and assumptions, there are no recoverability issues for these amounts. |
Schedule of Components of Inventories, Noncurrent | The following summarizes the components of Inventories : (MILLIONS) June 30, December 31, 2023 Finished goods $ 3,220 $ 3,495 Work-in-process 7,072 5,688 Raw materials and supplies 1,156 1,007 Inventories (a) $ 11,447 $ 10,189 Noncurrent inventories not included above (b) $ 2,918 $ 4,568 (a) The increase from December 31, 2023 reflects higher inventory levels for certain products mainly for supply recovery and network strategy. (b) Included in Other noncurrent assets . The decrease from December 31, 2023 is primarily driven by an adjustment to the fair value step-up of acquired Seagen inventory. Based on our current estimates and assumptions, there are no recoverability issues for these amounts. |
Identifiable Intangible Asset_2
Identifiable Intangible Assets and Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The following summarizes the components of Identifiable intangible assets : June 30, 2024 December 31, 2023 (MILLIONS) Gross Accumulated Identifiable Gross Accumulated Identifiable Finite-lived intangible assets Developed technology rights (a) $ 99,449 $ (62,905) $ 36,543 $ 99,267 $ (60,493) $ 38,773 Brands (b) 1,749 (933) 816 922 (877) 45 Licensing agreements and other 2,761 (1,527) 1,234 2,756 (1,458) 1,297 103,959 (65,365) 38,594 102,944 (62,828) 40,116 Indefinite-lived intangible assets Brands (b) — — 827 827 IPR&D (c) 21,976 21,976 23,193 23,193 Licensing agreements and other 670 670 763 763 22,646 22,646 24,784 24,784 Identifiable intangible assets (d) $ 126,605 $ (65,365) $ 61,240 $ 127,728 $ (62,828) $ 64,900 (a) The increase in the gross carrying amount includes the transfer of IPR&D to developed technology rights of $727 million for talazoparib (Talzenna), partially offset by $385 million of measurement period adjustments related to our acquisition of Seagen (see Note 2A ) and impairments of $109 million (see Note 4 ). (b) The changes in the gross carrying amounts reflect the transfer of $827 million from indefinite-lived brands to finite-lived brands for Depo-Medrol. (c) The decrease in the gross carrying amount reflects the transfer of IPR&D to developed technology rights of $727 million for talazoparib (Talzenna), $250 million of measurement period adjustments related to our acquisition of Seagen (see Note 2A ) and impairments of $240 million (see Note 4 ) . (d) The decrease is primarily due to amortization expense of $2.6 billion, measurement period adjustments related to our acquisition of Seagen of $625 million (see Note 2A ) and impairments of $349 million (see Note 4 ). |
Schedule of Indefinite Lived Intangible Assets | The following summarizes the components of Identifiable intangible assets : June 30, 2024 December 31, 2023 (MILLIONS) Gross Accumulated Identifiable Gross Accumulated Identifiable Finite-lived intangible assets Developed technology rights (a) $ 99,449 $ (62,905) $ 36,543 $ 99,267 $ (60,493) $ 38,773 Brands (b) 1,749 (933) 816 922 (877) 45 Licensing agreements and other 2,761 (1,527) 1,234 2,756 (1,458) 1,297 103,959 (65,365) 38,594 102,944 (62,828) 40,116 Indefinite-lived intangible assets Brands (b) — — 827 827 IPR&D (c) 21,976 21,976 23,193 23,193 Licensing agreements and other 670 670 763 763 22,646 22,646 24,784 24,784 Identifiable intangible assets (d) $ 126,605 $ (65,365) $ 61,240 $ 127,728 $ (62,828) $ 64,900 (a) The increase in the gross carrying amount includes the transfer of IPR&D to developed technology rights of $727 million for talazoparib (Talzenna), partially offset by $385 million of measurement period adjustments related to our acquisition of Seagen (see Note 2A ) and impairments of $109 million (see Note 4 ). (b) The changes in the gross carrying amounts reflect the transfer of $827 million from indefinite-lived brands to finite-lived brands for Depo-Medrol. (c) The decrease in the gross carrying amount reflects the transfer of IPR&D to developed technology rights of $727 million for talazoparib (Talzenna), $250 million of measurement period adjustments related to our acquisition of Seagen (see Note 2A ) and impairments of $240 million (see Note 4 ) . (d) The decrease is primarily due to amortization expense of $2.6 billion, measurement period adjustments related to our acquisition of Seagen of $625 million (see Note 2A ) and impairments of $349 million (see Note 4 ). |
Schedule of Goodwill | The following summarizes the changes in the carrying amount of Goodwill : (MILLIONS) Total (a) Balance, January 1, 2024 $ 67,783 Additions (b) 677 Impact of foreign exchange (16) Balance, June 30, 2024 $ 68,445 (a) All goodwill is assigned within the Biopharma reportable segment. As a result of the organizational changes to the commercial structure within the Biopharma operating segment effective in the first quarter of 2024 (see Note 13A ), our goodwill is required to be reallocated amongst impacted reporting units. The allocation of goodwill is a complex process that requires, among other things, that we determine the fair value of each reporting unit under our old and new organizational structure and the portions being transferred. Therefore, we have not yet completed the allocation, but it will be completed in the current year. (b) Additions primarily represent measurement period adjustments related to our acquisition of Seagen (see Note 2A ). |
Pension and Postretirement Be_2
Pension and Postretirement Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Benefit Costs | The following summarizes the components of net periodic benefit cost/(credit): Pension Plans U.S. International Postretirement Three Months Ended (MILLIONS) June 30, July 2, June 30, July 2, June 30, July 2, Service cost $ — $ — $ 23 $ 22 $ 4 $ 3 Interest cost 139 147 77 72 6 5 Expected return on plan assets (208) (194) (80) (76) (13) (11) Amortization of prior service cost/(credit) — — 1 — (29) (30) Actuarial (gains)/losses — 5 — — — — Curtailments — — — — — (7) Special termination benefits — 5 2 — — — Net periodic benefit cost/(credit) reported in income $ (69) $ (37) $ 23 $ 18 $ (33) $ (39) Pension Plans U.S. International Postretirement Six Months Ended (MILLIONS) June 30, July 2, June 30, July 2, June 30, July 2, Service cost $ — $ — $ 44 $ 43 $ 7 $ 6 Interest cost 277 295 155 143 12 11 Expected return on plan assets (416) (389) (160) (152) (25) (22) Amortization of prior service cost/(credit) 1 1 2 — (59) (60) Actuarial (gains)/losses — 14 — 3 — — Curtailments — — (2) (1) — (12) Special termination benefits — 6 6 — — — Net periodic benefit cost/(credit) reported in income $ (139) $ (73) $ 46 $ 36 $ (65) $ (77) |
Earnings Per Common Share Att_2
Earnings Per Common Share Attributable to Pfizer Inc. Common Shareholders (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Share | The following presents the detailed calculation of EPS : Three Months Ended Six Months Ended (MILLIONS) June 30, July 2, June 30, July 2, EPS Numerator Income from continuing operations attributable to Pfizer Inc. common shareholders $ 24 $ 2,329 $ 3,144 $ 7,871 Discontinued operations––net of tax 17 (2) 12 (1) Net income attributable to Pfizer Inc. common shareholders $ 41 $ 2,327 $ 3,156 $ 7,870 EPS Denominator Weighted-average number of common shares outstanding––Basic 5,666 5,646 5,662 5,640 Common-share equivalents 29 67 35 80 Weighted-average number of common shares outstanding––Diluted 5,696 5,713 5,696 5,720 Anti-dilutive common stock equivalents (a) 23 3 24 2 (a) These common stock equivalents were outstanding for the periods presented, but were not included in the computation of diluted EPS for those periods because their inclusion would have had an anti-dilutive effect. |
Segment, Geographic and Other_2
Segment, Geographic and Other Revenue Information (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information by Segment | The following provides selected information by reportable segment: Three Months Ended Six Months Ended Total Revenues Earnings (a) Total Revenues Earnings (a) (MILLIONS) June 30, July 2, June 30, July 2, June 30, July 2, June 30, July 2, Reportable Segment: Biopharma (b) $ 12,991 $ 12,690 $ 5,897 $ 5,042 $ 27,595 $ 30,863 $ 13,519 $ 14,559 Other business activities (c) 292 317 (1,985) (910) 567 630 (3,992) (2,225) Reconciling Items: Amortization of intangible assets (1,307) (1,184) (2,615) (2,287) Acquisition-related items (617) (387) (1,125) (550) Certain significant items (d) (2,091) (293) (2,469) (958) $ 13,283 $ 13,007 $ (103) $ 2,269 $ 28,162 $ 31,492 $ 3,318 $ 8,539 (a) Income/(loss) from continuing operations before provision/(benefit) for taxes on income/(loss). As described above, in connection with the organizational changes effective in the first quarter of 2024, costs associated with R&D and medical and safety activities managed by our global ORD and PRD organizations and overhead costs associated with our manufacturing operations are now included in Biopharma’s earnings. We have reclassified $2.0 billion and $3.4 billion of net costs in the second quarter and first six months of 2023, respectively, from Other business activities to Biopharma to conform to the current period presentation. (b) Biopharma’s revenues and earnings in the first six months of 2024 reflect a non-cash favorable product return adjustment of $771 million recorded in the first quarter of 2024 (see Note 13C ). Biopharma’s earnings also include dividend income from our investment in ViiV of $74 million in the second quarter of 2024 and $91 million in the second quarter of 2023, and $135 million in the first six months of 2024 and $183 million in the first six months of 2023. (c) Other business activities include revenues and costs associated with PC1 and Pfizer Ignite as well as costs that we do not allocate to our operating segments, per above. (d) Certain significant items are substantive and/or unusual, and in some cases recurring, items (as noted above). Earnings in the second quarter and first six months of 2024 includes, among other items, restructuring charges/(credits) and implementation costs and additional depreciation—asset restructuring of $1.2 billion (primarily recorded in Restructuring charges and certain acquisition-related costs ). See Note 3 . |
Schedule of Revenues by Geographic Region | The following summarizes revenues by geographic area: Three Months Ended Six Months Ended (MILLIONS) June 30, July 2, % June 30, July 2, % United States $ 7,892 $ 6,458 22 $ 17,406 $ 15,169 15 International: Developed Markets 3,164 4,125 (23) 6,362 9,759 (35) Emerging Markets 2,227 2,423 (8) 4,394 6,564 (33) Total revenues $ 13,283 $ 13,007 2 $ 28,162 $ 31,492 (11) |
Schedule of Significant Product Revenues | The following provides detailed revenue information for several of our major products: (MILLIONS) Three Months Ended Six Months Ended PRODUCT PRIMARY INDICATION OR CLASS June 30, July 2, June 30, July 2, TOTAL REVENUES $ 13,283 $ 13,007 $ 28,162 $ 31,492 GLOBAL BIOPHARMACEUTICALS BUSINESS (BIOPHARMA) $ 12,991 $ 12,690 $ 27,595 $ 30,863 Primary Care $ 4,952 $ 5,884 $ 12,163 $ 17,444 Eliquis (a) Nonvalvular atrial fibrillation, deep vein thrombosis, pulmonary embolism 1,877 1,762 3,917 3,636 Prevnar family Active immunization to prevent pneumonia, invasive disease and otitis media caused by Streptococcus pneumoniae 1,359 1,431 3,050 3,033 Paxlovid (b) COVID-19 in certain high-risk patients 251 143 2,286 4,212 Comirnaty Active immunization to prevent COVID-19 195 1,488 548 4,552 Nurtec ODT/Vydura Acute treatment of migraine and prevention of episodic migraine 356 247 533 414 Abrysvo Active immunization to prevent RSV infection 56 — 201 — Premarin family Symptoms of menopause 108 95 193 207 FSME-IMMUN/TicoVac Active immunization to prevent tick-borne encephalitis disease 100 101 165 146 All other Primary Care Various 651 616 1,269 1,244 Specialty Care $ 4,083 $ 3,656 $ 7,926 $ 7,272 Vyndaqel family ATTR-CM and polyneuropathy 1,323 782 2,460 1,468 Xeljanz RA, PsA, UC, active polyarticular course juvenile idiopathic arthritis, ankylosing spondylitis 303 469 497 706 Enbrel (Outside the U.S. and Canada) RA, juvenile idiopathic arthritis, PsA, plaque psoriasis, pediatric plaque psoriasis, ankylosing spondylitis and nonradiographic axial spondyloarthritis 179 219 338 419 Sulperazon Bacterial infections 144 177 311 497 Zavicefta Bacterial infections 150 132 275 248 (MILLIONS) Three Months Ended Six Months Ended PRODUCT PRIMARY INDICATION OR CLASS June 30, July 2, June 30, July 2, Zithromax Bacterial infections 74 44 274 194 Inflectra Crohn’s disease, pediatric Crohn’s disease, UC, pediatric UC, RA in combination with methotrexate, ankylosing spondylitis, PsA and plaque psoriasis 97 74 255 252 Genotropin Replacement of human growth hormone 119 74 239 222 BeneFIX Hemophilia B 103 106 206 215 Octagam Primary humoral immunodeficiency, chronic immune thrombocytopenic purpura in adults, and dermatomyositis in adults 104 66 179 111 Oxbryta Sickle cell disease 92 77 176 148 Cibinqo Atopic dermatitis 47 38 89 54 All other Hospital (c) Various 1,114 1,213 2,188 2,365 All other Specialty Care Various 234 185 440 373 Oncology $ 3,956 $ 3,149 $ 7,505 $ 6,146 Ibrance HR-positive/HER2-negative metastatic breast cancer 1,130 1,247 2,184 2,391 Xtandi (d) mCRPC, nmCRPC, mCSPC, nmCSPC 495 423 913 763 Padcev Locally advanced or metastatic urothelial cancer 394 — 735 — Oncology biosimilars (e) Various 279 363 543 775 Adcetris Hodgkin lymphoma and certain T-cell lymphomas 279 — 536 — Inlyta Advanced RCC 252 262 489 521 Lorbrena ALK-positive metastatic NSCLC 169 121 332 234 Bosulif Philadelphia chromosome–positive chronic myelogenous leukemia 167 154 313 304 Braftovi/Mektovi Metastatic melanoma in patients with a BRAF V600E/K mutation and for metastatic NSCLC in patients with a BRAF V600E mutation; and, for Braftovi, in combination with Erbitux (cetuximab) (f) for the treatment of BRAF V600E -mutant mCRC after prior therapy 148 113 264 215 Tukysa Unresectable or metastatic HER2-positive breast cancer; RAS wild-type, HER2-positive unresectable or metastatic colorectal cancer 121 — 227 — Tivdak Recurrent or metastatic cervical cancer 33 — 60 — Talzenna In combination with Xtandi (enzalutamide) for adult patients with HRR gene-mutated mCRPC; treatment of BRCA gene-mutated, HER2-negative, inoperable or recurrent breast cancer 32 12 55 22 All other Oncology Various 457 455 853 923 PFIZER CENTREONE (g) $ 278 $ 307 $ 535 $ 615 PFIZER IGNITE $ 15 $ 10 $ 32 $ 14 BIOPHARMA $ 12,991 $ 12,690 $ 27,595 $ 30,863 PFIZER U.S. COMMERCIAL DIVISION (U.S. Primary Care and U.S. Specialty Care) 4,911 4,200 11,764 10,815 PFIZER ONCOLOGY DIVISION 2,918 2,167 5,490 4,150 PFIZER INTERNATIONAL COMMERCIAL DIVISION 5,163 6,323 10,341 15,898 Total Alliance revenues included above $ 2,067 $ 1,967 $ 4,240 $ 4,028 Total Royalty revenues included above $ 345 $ 273 $ 608 $ 477 (a) Primarily reflects Alliance revenues and product revenues. (b) The first six months of 2024 includes a $771 million favorable final adjustment recorded in the first quarter of 2024 to the estimated non-cash revenue reversal of $3.5 billion recorded in the fourth quarter of 2023, reflecting 5.1 million EUA-labeled treatment courses returned by the U.S. government through February 29, 2024 versus the estimated 6.5 million treatment courses that were expected to be returned as of December 31, 2023. (c) Includes, among other Hospital products, amounts previously presented as All other Anti-infectives and Ig Portfolio. (d) Primarily reflects Alliance revenues and royalty revenues. (e) Biosimilars are highly similar versions of approved and authorized biological medicines. Oncology biosimilars primarily include Retacrit, Ruxience, Zirabev, Trazimera and Nivestym. (f) Erbitux is a registered trademark of ImClone LLC. (g) PC1 includes revenues from our contract manufacturing and our active pharmaceutical ingredient sales operation, as well as revenues related to our manufacturing and supply agreements with legacy Pfizer businesses/partnerships. |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies - Narrative (Details) | 6 Months Ended |
Jun. 30, 2024 operatingSegment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of segments | 3 |
Basis of Presentation and Sig_5
Basis of Presentation and Significant Accounting Policies - Schedule of Balance Sheet Classification of Accruals (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Schedule Of Accrued Liabilities [Line Items] | ||
Total accrued rebates and other sales-related accruals | $ 9,401 | $ 9,014 |
Trade accounts receivable, less allowance for doubtful accounts [Member] | ||
Schedule Of Accrued Liabilities [Line Items] | ||
Total accrued rebates and other sales-related accruals | 1,578 | 1,770 |
Other current liabilities [Member] | ||
Schedule Of Accrued Liabilities [Line Items] | ||
Accrued rebates | 6,726 | 5,546 |
Other accruals | 529 | 902 |
Other noncurrent liabilities [Member] | ||
Schedule Of Accrued Liabilities [Line Items] | ||
Total accrued rebates and other sales-related accruals | $ 569 | $ 796 |
Acquisition and Equity-Method_3
Acquisition and Equity-Method Investment - Acquisitions Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 14, 2023 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | |
Business Acquisition [Line Items] | ||||
Acquisitions of businesses, net of cash acquired | $ 0 | $ 25 | ||
Seagen [Member] | ||||
Business Acquisition [Line Items] | ||||
Business acquisition, per share in cash (in dollars per share) | $ 229 | |||
Payments to acquire business, gross | $ 44,200 | |||
Acquisitions of businesses, net of cash acquired | $ 43,400 | |||
Pro Forma net loss attributable to Pfizer Inc. common shareholders | $ (1,389) | (6,040) | ||
Seagen [Member] | Amortization Expense [Member] | ||||
Business Acquisition [Line Items] | ||||
Pro Forma net loss attributable to Pfizer Inc. common shareholders | 143 | 285 | ||
Seagen [Member] | Fair Value Adjustment to Inventory [Member] | ||||
Business Acquisition [Line Items] | ||||
Pro Forma net loss attributable to Pfizer Inc. common shareholders | 224 | 449 | ||
Seagen [Member] | Interest Expense [Member] | ||||
Business Acquisition [Line Items] | ||||
Pro Forma net loss attributable to Pfizer Inc. common shareholders | 303 | 791 | ||
Seagen [Member] | Interest Income [Member] | ||||
Business Acquisition [Line Items] | ||||
Pro Forma net loss attributable to Pfizer Inc. common shareholders | $ 263 | $ 330 |
Acquisition and Equity-Method_4
Acquisition and Equity-Method Investment - Purchase Price Allocation (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2024 | Dec. 31, 2023 | Dec. 14, 2023 | ||
Business Acquisition [Line Items] | ||||
Goodwill | [1] | $ 68,445 | $ 67,783 | |
Seagen [Member] | ||||
Business Acquisition [Line Items] | ||||
Working capital, excluding inventories | 552 | $ 736 | ||
Inventories | [2] | 3,304 | 4,195 | |
Property, plant and equipment | 291 | 524 | ||
Other noncurrent assets | 67 | 174 | ||
Net income tax accounts | (4,810) | (6,123) | ||
Other noncurrent liabilities | (117) | (167) | ||
Total identifiable net assets | 27,431 | 28,108 | ||
Goodwill | 16,803 | 16,126 | ||
Net assets acquired/total consideration transferred | 44,234 | 44,234 | ||
Measurement Period Adjustments | ||||
Working capital, excluding inventories | [3] | (184) | ||
Inventories | [2],[3] | (891) | ||
Property, plant and equipment | [3] | (233) | ||
Other noncurrent assets | [3] | (106) | ||
Net income tax accounts | [3] | 1,313 | ||
Other noncurrent liabilities | [3] | 50 | ||
Total identifiable net assets | [3] | (677) | ||
Goodwill | [3] | 677 | ||
Net assets acquired/total consideration transferred | [3] | 0 | ||
Current inventories | 1,200 | |||
Noncurrent inventories | 2,100 | |||
Seagen [Member] | IPR&D [Member] | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets | 20,750 | 20,800 | ||
Measurement Period Adjustments | ||||
Identifiable intangible assets | [3] | (50) | ||
Seagen [Member] | Developed Technology Rights and Other Intangible Assets [Member] | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets | [4] | 7,395 | $ 7,970 | |
Measurement Period Adjustments | ||||
Identifiable intangible assets | [3],[4] | (575) | ||
Seagen [Member] | Developed technology rights [Member] | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets | $ 6,900 | |||
Measurement Period Adjustments | ||||
Acquired intangible assets, useful life | 18 years | |||
[1] All goodwill is assigned within the Biopharma reportable segment. As a result of the organizational changes to the commercial structure within the Biopharma operating segment effective in the first quarter of 2024 (see Note 13A ), our goodwill is required to be reallocated amongst impacted reporting units. The allocation of goodwill is a complex process that requires, among other things, that we determine the fair value of each reporting unit under our old and new organizational structure and the portions being transferred. Therefore, we have not yet completed the allocation, but it will be completed in the current year. As adjusted, comprised of $1.2 billion current inventories and $2.1 billion noncurrent inventories. |
Acquisition and Equity-Method_5
Acquisition and Equity-Method Investment - Pro Forma Information (Details) - Seagen [Member] - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended |
Jul. 02, 2023 | Jul. 02, 2023 | |
Business Acquisition [Line Items] | ||
Revenues | $ 13,611 | $ 32,616 |
Net income attributable to Pfizer Inc. common shareholders | $ 1,389 | $ 6,040 |
Diluted earnings per share attributable to Pfizer Inc. common shareholders | $ 0.24 | $ 1.06 |
Acquisition and Equity-Method_6
Acquisition and Equity-Method Investment - Equity Method Investment Narrative (Details) - USD ($) shares in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2024 | Jun. 30, 2024 | Jul. 02, 2023 | Dec. 31, 2023 | ||
Schedule of Equity Method Investments [Line Items] | ||||||
Proceeds from partial sale of investment in Haleon | [1] | $ 3,491 | $ 0 | |||
Haleon [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment, ownership percentage | 23% | 32% | ||||
Equity method investment, ownership percentage sold | 30% | |||||
Proceeds from partial sale of investment in Haleon | $ 3,500 | |||||
Gain on sale of equity method investment | $ 150 | $ 150 | ||||
Equity-method investment, quoted market value | $ 8,400 | |||||
Haleon [Member] | Sale of Equity-Method Investment in Public Stock Offering [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Number of shares sold in transaction (in shares) | 791 | |||||
Haleon [Member] | Sale of Equity-Method Investment in Private Placement [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Number of shares sold in transaction (in shares) | 102 | |||||
[1]See Note 2B . |
Acquisition and Equity-Method_7
Acquisition and Equity-Method Investment - Change in the Carrying Value of Equity Method Investment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | ||
Schedule of Changes in Carrying Value of Investments [Roll Forward] | |||||
Beginning carrying value reported in Equity-method investments | $ 11,637 | ||||
Ending carrying value reported in Equity-method investments | $ 8,029 | 8,029 | |||
Haleon [Member] | |||||
Schedule of Changes in Carrying Value of Investments [Roll Forward] | |||||
Beginning carrying value reported in Equity-method investments | 7,922 | $ 10,980 | 11,451 | $ 10,824 | |
Carrying value of shares sold | 0 | 0 | (3,312) | 0 | |
Dividends | (157) | (88) | (157) | (88) | |
Currency translation adjustments and other | [1] | 1 | 185 | (130) | 274 |
Basis difference adjustments and amortization | [2],[3] | (1) | 0 | (101) | (1) |
Pfizer share of Haleon investee capital transaction | [2],[4] | (91) | 0 | (91) | 0 |
Pfizer share of Haleon earnings | [2] | 121 | 151 | 136 | 219 |
Ending carrying value reported in Equity-method investments | $ 7,796 | $ 11,228 | $ 7,796 | $ 11,228 | |
[1] See Note 6 . Included in Other (income)/deductions –– net . Adjustments in the six months ended June 30, 2024 are associated with (i) the impact of Haleon’s brand divestitures and impairments of intangible assets and (ii) changes in Haleon’s tax rates on intangible asset-related deferred tax liabilities. See Note 4 . Amounts for the three and six months ended June 30, 2024 relate to Pfizer’s share of an investee capital transaction recognized by Haleon for treasury stock Haleon purchased in the first quarter of 2024. |
Acquisition and Equity-Method_8
Acquisition and Equity-Method Investment - Schedule of Equity-Method Investment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2024 | Mar. 31, 2024 | Jul. 02, 2023 | Apr. 02, 2023 | Jun. 30, 2024 | Mar. 31, 2024 | Jul. 02, 2023 | Mar. 31, 2023 | |
Schedule of Equity Method Investments [Line Items] | ||||||||
Net sales | $ 13,283 | $ 13,007 | $ 28,162 | $ 31,492 | ||||
Income from continuing operations | 31 | 2,340 | 3,159 | 7,895 | ||||
Net income/(loss) | 48 | 2,338 | 3,171 | 7,894 | ||||
Income attributable to shareholders | $ 41 | $ 2,327 | $ 3,156 | $ 7,870 | ||||
Haleon [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Net sales | $ 3,699 | $ 7,133 | ||||||
Cost of sales | (1,370) | (2,966) | ||||||
Gross profit | 2,329 | 4,167 | ||||||
Income from continuing operations | 559 | 618 | ||||||
Net income/(loss) | 559 | 618 | ||||||
Income attributable to shareholders | $ 536 | $ 583 | ||||||
Haleon / Consumer Healthcare JV [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Net sales | $ 3,627 | $ 6,889 | ||||||
Cost of sales | (1,392) | (2,888) | ||||||
Gross profit | 2,235 | 4,001 | ||||||
Income from continuing operations | 504 | 730 | ||||||
Net income/(loss) | 504 | 730 | ||||||
Income attributable to shareholders | $ 473 | $ 684 |
Restructuring Charges and Oth_3
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives - Narrative (Details) $ in Billions | Jun. 30, 2024 USD ($) |
Realigning Our Cost Base Program [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Expected restructuring cost | $ 2.3 |
Restructuring cost incurred to date | 1.5 |
Realigning Our Cost Base Program [Member] | Biopharma [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Expected restructuring cost | 1.7 |
Restructuring cost incurred to date | 1.2 |
Manufacturing Optimization Program [Member] | Biopharma [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring cost incurred to date | 1.3 |
Manufacturing Optimization Program - Phase One | Biopharma [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Expected restructuring cost | $ 1.7 |
Restructuring Charges and Oth_4
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives - Schedule of Acquisitions and Cost-Reduction/Productivity Initiatives (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | ||
Restructuring charges/(credits): | |||||
Employee terminations | $ 1,014 | $ 96 | $ 984 | $ 61 | |
Asset impairments | 41 | 15 | 66 | 4 | |
Exit costs | 49 | 27 | 63 | 29 | |
Restructuring charges/(credits) | [1] | 1,104 | 138 | 1,114 | 94 |
Transaction costs | [2] | 0 | 8 | 5 | 8 |
Integration costs and other | [3] | 150 | 68 | 237 | 120 |
Restructuring charges and certain acquisition-related costs | 1,254 | 214 | 1,356 | 222 | |
Additional depreciation––asset restructuring | [4] | 4 | 4 | 8 | 23 |
Implementation costs | [5] | 105 | 98 | 163 | 183 |
Total costs associated with acquisitions and cost-reduction/productivity initiatives | 1,364 | 313 | 1,532 | 420 | |
Biopharma [Member] | |||||
Restructuring charges/(credits): | |||||
Restructuring charges/(credits) | 1,100 | 1,100 | |||
Biopharma [Member] | Manufacturing Optimization Program [Member] | |||||
Restructuring charges/(credits): | |||||
Restructuring charges/(credits) | 1,300 | 1,300 | |||
Biopharma [Member] | Realigning Our Cost Base Program [Member] | |||||
Restructuring charges/(credits): | |||||
Restructuring charges/(credits) | (113) | (199) | |||
Other (income)/deductions––net [Member] | |||||
Restructuring charges/(credits): | |||||
Net periodic benefit costs/(credits) recorded in Other (income)/deductions––net | 2 | (2) | 5 | (7) | |
Cost of sales [Member] | |||||
Restructuring charges/(credits): | |||||
Additional depreciation––asset restructuring | [4] | 1 | 4 | 5 | 22 |
Implementation costs | [5] | 49 | 13 | 65 | 27 |
Selling, informational and administrative expenses [Member] | |||||
Restructuring charges/(credits): | |||||
Additional depreciation––asset restructuring | [4] | 3 | 0 | 3 | 0 |
Implementation costs | [5] | 36 | 67 | 65 | 126 |
Research and development expense [Member] | |||||
Restructuring charges/(credits): | |||||
Implementation costs | [5] | $ 20 | $ 19 | $ 33 | $ 30 |
[1] Primarily represents cost-reduction initiatives. Amounts associated with our Biopharma segment: charges of $1.1 billion for both the three and six months ended June 30, 2024 (including charges of $1.3 billion for our Manufacturing Optimization Program for both periods presented and credits of $113 million for the three months and $199 million for the six months ended June 30, 2024 for our Realigning our Cost Base Program). Amounts associated with our Biopharma segment for the three and six months ended July 2, 2023 were not material. Represents external costs for banking, legal, accounting and other similar services. Represents external, incremental costs directly related to integrating acquired businesses, such as expenditures for consulting and the integration of systems and processes, and certain other qualifying costs. Represents the impact of changes in the estimated useful lives of assets involved in restructuring actions. Represents external, incremental costs directly related to implementing our non-acquisition-related cost-reduction/productivity initiatives. |
Restructuring Charges and Oth_5
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives - Schedule of Components and Changes in Restructuring Accruals (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | ||
Restructuring Reserve [Roll Forward] | |||||
Balance, beginning | [1] | $ 1,988 | |||
Provision/(credit) | [2] | $ 1,104 | $ 138 | 1,114 | $ 94 |
Utilization and other | [3] | (703) | |||
Balance, ending | [4] | 2,399 | 2,399 | ||
Other Current Liabilities [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Balance, beginning | 1,300 | ||||
Balance, ending | 1,000 | 1,000 | |||
Other Noncurrent Liabilities [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Balance, beginning | 663 | ||||
Balance, ending | 1,400 | 1,400 | |||
Employee Termination Costs [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Balance, beginning | [1] | 1,978 | |||
Provision/(credit) | 984 | ||||
Utilization and other | [3] | (592) | |||
Balance, ending | [4] | 2,370 | 2,370 | ||
Asset Impairment Charges [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Balance, beginning | [1] | 0 | |||
Provision/(credit) | 66 | ||||
Utilization and other | [3] | (66) | |||
Balance, ending | [4] | 0 | 0 | ||
Exit Costs [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Balance, beginning | [1] | 11 | |||
Provision/(credit) | 63 | ||||
Utilization and other | [3] | (45) | |||
Balance, ending | [4] | $ 29 | $ 29 | ||
[1] Included in Other current liabilities ($1.3 billion) and Other noncurrent liabilities ($663 million). Primarily represents cost-reduction initiatives. Amounts associated with our Biopharma segment: charges of $1.1 billion for both the three and six months ended June 30, 2024 (including charges of $1.3 billion for our Manufacturing Optimization Program for both periods presented and credits of $113 million for the three months and $199 million for the six months ended June 30, 2024 for our Realigning our Cost Base Program). Amounts associated with our Biopharma segment for the three and six months ended July 2, 2023 were not material. Other activity includes adjustments for foreign currency translation that are not material to our condensed consolidated financial statements. Included in Other current liabilities ($1.0 billion) and Other noncurrent liabilities ($1.4 billion). |
Other (Income)_Deductions_Net -
Other (Income)/Deductions—Net - Schedule of Other (Income)/Deductions—Net (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | ||
Other Income and Expenses [Abstract] | |||||
Interest income | $ (130) | $ (316) | $ (259) | $ (493) | |
Interest expense | 778 | 508 | 1,568 | 826 | |
Net interest expense | [1] | 648 | 192 | 1,310 | 333 |
Net (gains) losses recognized during the period on equity securities | [2] | 342 | (135) | 317 | 316 |
Income from collaborations, out-licensing arrangements and sales of compound/product rights | (22) | (7) | (24) | (74) | |
Net periodic benefit costs/(credits) other than service costs | (106) | (88) | (209) | (168) | |
Certain legal matters, net | [3] | 169 | 139 | 377 | 175 |
Certain asset impairments | [4] | 240 | 0 | 349 | 264 |
Haleon equity method (income)/loss | [5] | (40) | (156) | 48 | (224) |
Other, net | [6] | (124) | (20) | (381) | (423) |
Other (income)/deductions––net | $ 1,107 | $ (75) | $ 1,787 | $ 200 | |
[1] The increase in net interest expense in the second quarter and first six months of 2024 reflects (i) higher interest expense driven by our $31 billion aggregate principal amount of senior unsecured notes issued in May 2023, as well as $8 billion of commercial paper issued in the fourth quarter of 2023 as part of the financing for our acquisition of Seagen and (ii) a decrease in interest income due to lower investment balances after completion of our $43.4 billion Seagen acquisition in December 2023. Reported in Other (income)/deductions –– net. See Note 4 . The second quarter and first six months of 2024 primarily include certain product liability expenses related to products discontinued and/or divested by Pfizer. The second quarter and first six months of 2023 primarily included certain product liability and other legal expenses related to products discontinued and/or divested by Pfizer. The second quarter and first six months of 2024 include a $240 million intangible asset impairment charge, associated with our Biopharma segment that represents IPR&D related to a Phase 3 study for the treatment of DMD, which reflects unfavorable clinical trial results. The first six months of 2023 primarily represented intangible asset impairment charges, including (i) $128 million associated with Other business activities, related to IPR&D and developed technology rights for acquired software assets and reflected unfavorable pivotal trial results and updated commercial forecasts, and (ii) $120 million associated with our Biopharma segment resulting from the discontinuation of a study related to an out-licensed IPR&D asset for the treatment of prostate cancer. See Note 2B . The second quarter of 2024 primarily includes, among other things, dividend income of $74 million from our investment in ViiV. The first six months of 2024 includes, among other things, a $150 million gain on the partial sale of our investment in Haleon and dividend income of $135 million from our investment in ViiV. The first six months of 2023 primarily included, among other things, dividend income of $211 million from our investment in Nimbus resulting from Takeda’s acquisition of Nimbus’s oral, selective allosteric tyrosine kinase 2 (TYK2) inhibitor program subsidiary, and $183 million from our investment in ViiV. |
Other (Income)_Deductions_Net_2
Other (Income)/Deductions—Net - Footnotes (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||||
Dec. 14, 2023 | Jun. 30, 2024 | Mar. 31, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | Dec. 31, 2023 | May 31, 2023 | |||
Loss Contingencies [Line Items] | ||||||||||
Commercial paper, principal amount | $ 7,964,000,000 | $ 7,964,000,000 | $ 7,965,000,000 | |||||||
Acquisitions of businesses, net of cash acquired | 0 | $ 25,000,000 | ||||||||
Net unrealized (gains)/losses during the reporting period on equity securities still held at the reporting date | [1] | 344,000,000 | $ (121,000,000) | 533,000,000 | 363,000,000 | |||||
Intangible asset impairment charge | 349,000,000 | |||||||||
Seagen [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Commercial paper, principal amount | $ 8,000,000,000 | |||||||||
Acquisitions of businesses, net of cash acquired | $ 43,400,000,000 | |||||||||
Unsecured Debt [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Face amount of debt issued | $ 31,000,000,000 | |||||||||
IPR&D [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Intangible asset impairment charge | [2] | 240,000,000 | ||||||||
IPR&D [Member] | Biopharma [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Intangible asset impairment charge | 240,000,000 | 240,000,000 | 128,000,000 | [2] | ||||||
License Agreements and Other [Member] | Biopharma [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Intangible asset impairment charge | 120,000,000 | |||||||||
Haleon [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Gain on sale of equity method investment | $ 150,000,000 | 150,000,000 | ||||||||
ViiV [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Dividend income | 135,000,000 | 183,000,000 | ||||||||
ViiV [Member] | Biopharma [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Dividend income | $ 74,000,000 | $ 91,000,000 | $ 135,000,000 | 183,000,000 | ||||||
Nimbus [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Dividend income | $ 211,000,000 | |||||||||
[1] Included in net unrealized (gains)/losses are observable price changes on equity securities without readily determinable fair values. As of June 30, 2024, there were cumulative impairments and downward adjustments of $306 million and upward adjustments of $214 million. Impairments, downward and upward adjustments were not material to our operations in the second quarters and first six months of 2024 and 2023. Reflects intangible assets written down to fair value in 2024. Fair value was determined using the income approach, specifically the multi-period excess earnings method, also known as the discounted cash flow method. We started with a forecast of all the expected net cash flows for the asset and then applied an asset-specific discount rate to arrive at a net present value amount. Some of the more significant estimates and assumptions inherent in this approach include: the amount and timing of the projected net cash flows, which includes the expected impact of competitive, legal and/or regulatory forces on the product; the discount rate, which seeks to reflect the various risks inherent in the projected cash flows; and the tax rate, which seeks to incorporate the geographic diversity of the projected cash flows. |
Other (Income)_Deductions_Net_3
Other (Income)/Deductions—Net - Schedule of Impaired Intangible Assets (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 USD ($) | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total | $ 102 | [1] |
Impairment | 349 | |
IPR&D [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets-IPR&D | 0 | [1],[2] |
Impairment | 240 | [2] |
Developed technology rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets-Developed technology right | 102 | [1],[2] |
Impairment | 109 | [2] |
Level 1 [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total | 0 | [1] |
Level 1 [Member] | IPR&D [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets-IPR&D | 0 | [1],[2] |
Level 1 [Member] | Developed technology rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets-Developed technology right | 0 | [1],[2] |
Level 2 [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total | 0 | [1] |
Level 2 [Member] | IPR&D [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets-IPR&D | 0 | [1],[2] |
Level 2 [Member] | Developed technology rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets-Developed technology right | 0 | [1],[2] |
Level 3 [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total | 102 | [1] |
Level 3 [Member] | IPR&D [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets-IPR&D | 0 | [1],[2] |
Level 3 [Member] | Developed technology rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets-Developed technology right | $ 102 | [1],[2] |
[1] The fair value amount is presented as of the date of impairment, as this asset is not measured at fair value on a recurring basis. See also Note 1E in our 2023 Form 10-K . Reflects intangible assets written down to fair value in 2024. Fair value was determined using the income approach, specifically the multi-period excess earnings method, also known as the discounted cash flow method. We started with a forecast of all the expected net cash flows for the asset and then applied an asset-specific discount rate to arrive at a net present value amount. Some of the more significant estimates and assumptions inherent in this approach include: the amount and timing of the projected net cash flows, which includes the expected impact of competitive, legal and/or regulatory forces on the product; the discount rate, which seeks to reflect the various risks inherent in the projected cash flows; and the tax rate, which seeks to incorporate the geographic diversity of the projected cash flows. |
Tax Matters - Narrative (Detail
Tax Matters - Narrative (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | Dec. 31, 2023 | |
Income Tax Contingency [Line Items] | |||||
Effective tax rate for income from continuing operations | 130.20% | (3.10%) | 4.80% | 7.50% | |
Repatriation tax liability | $ 15,000 | $ 15,000 | |||
Income taxes | $ 2,686 | $ 2,025 | $ 3,100 | ||
Domestic Tax Authority | |||||
Income Tax Contingency [Line Items] | |||||
Income taxes | $ 1,900 |
Tax Matters - Schedule of Tax P
Tax Matters - Schedule of Tax Provision/(Benefit) on Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | ||
Income Tax Disclosure [Abstract] | |||||
Foreign currency translation adjustments, net | [1] | $ 18 | $ 20 | $ 42 | $ (5) |
Unrealized holding gains/(losses) on derivative financial instruments, net | 26 | 25 | 70 | 28 | |
Reclassification adjustments for (gains)/losses included in net income | (23) | (33) | (26) | (12) | |
Derivatives qualifying as hedges, tax, total | 3 | (8) | 44 | 16 | |
Unrealized holding gains/(losses) on available-for-sale securities, net | (3) | 3 | (9) | 14 | |
Reclassification adjustments for (gains)/losses included in net income | 12 | 2 | 11 | (62) | |
Available-for-sale securities, tax, total | 9 | 5 | 1 | (47) | |
Reclassification adjustments related to amortization of prior service costs and other, net | (9) | (7) | (13) | (14) | |
Reclassification adjustments related to curtailments of prior service costs and other, net | 1 | (1) | 1 | (3) | |
Pension and other postretirement benefit plans, net prior service cost (credit), tax | (7) | (8) | (12) | (17) | |
Tax provision/(benefit) on other comprehensive income/(loss) | $ 22 | $ 9 | $ 76 | $ (53) | |
[1] Taxes are not provided for foreign currency translation adjustments relating to investments in international subsidiaries that we intend to hold indefinitely. |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss, Excluding Noncontrolling Interests (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | $ 92,558 | $ 101,236 | $ 89,288 | $ 95,916 | ||
Other comprehensive income/(loss), net of tax | (67) | 184 | 131 | 196 | ||
Ending balance | 87,975 | 99,293 | 87,975 | 99,293 | ||
Accumulated Other Comprehensive Income (Loss) [Member] | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | (7,758) | (8,289) | (7,961) | (8,304) | ||
Other comprehensive income/(loss), net of tax | (58) | 187 | 145 | [1] | 202 | |
Ending balance | (7,816) | $ (8,102) | (7,816) | $ (8,102) | ||
Foreign Currency Translation Adjustment [Member] | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | [2] | (7,863) | ||||
Other comprehensive income/(loss), net of tax | [1],[2] | 41 | ||||
Ending balance | [2] | (7,822) | (7,822) | |||
Derivative Financial Instruments [Member] | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | (217) | |||||
Other comprehensive income/(loss), net of tax | [1] | 140 | ||||
Ending balance | (77) | (77) | ||||
Available-For-Sale Securities [Member] | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | (9) | |||||
Other comprehensive income/(loss), net of tax | [1] | 8 | ||||
Ending balance | (1) | (1) | ||||
Prior Service (Costs)/Credits and Other [Member] | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | 128 | |||||
Other comprehensive income/(loss), net of tax | [1] | (44) | ||||
Ending balance | $ 84 | $ 84 | ||||
[1] Foreign currency translation adjustments include net gains related to the impact of our net investment hedging program and net losses related to our equity-method investment in Haleon (see Note 2B ). Amounts do not include foreign currency translation adjustments attributable to noncontrolling interests. |
Financial Instruments - Financi
Financial Instruments - Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities with readily determinable fair values | [1] | $ 975 | $ 5,124 |
Total other noncurrent assets | 10,710 | 12,471 | |
Total assets | 216,193 | 226,501 | |
Total liabilities | 1,228 | 1,420 | |
Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current derivative assets | 421 | 298 | |
Noncurrent derivative assets | 374 | 402 | |
Insurance contracts | [2] | 872 | 790 |
Total other noncurrent assets | 1,246 | 1,191 | |
Total assets | 9,322 | 13,943 | |
Current derivative liabilities | 172 | 420 | |
Noncurrent derivative liabilities | 1,056 | 1,000 | |
Total liabilities | 1,228 | 1,420 | |
Long-term equity securities held in trust | 119 | 130 | |
Recurring [Member] | Interest rate contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Noncurrent derivative assets | 19 | 144 | |
Current derivative liabilities | 33 | 16 | |
Noncurrent derivative liabilities | 375 | 275 | |
Recurring [Member] | Foreign exchange contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current derivative assets | 421 | 298 | |
Noncurrent derivative assets | 354 | 258 | |
Current derivative liabilities | 139 | 404 | |
Noncurrent derivative liabilities | 682 | 725 | |
Short-term investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 4,401 | 4,400 | |
Total short-term investments | 5,376 | 9,524 | |
Long-term Investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities with readily determinable fair values | [3] | 2,210 | 2,779 |
Available-for-sale debt securities | 69 | 150 | |
Total long-term investments | 2,280 | 2,929 | |
Level 1 [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current derivative assets | 0 | 0 | |
Noncurrent derivative assets | 0 | 0 | |
Insurance contracts | [2] | 0 | 0 |
Total other noncurrent assets | 0 | 0 | |
Total assets | 2,210 | 2,772 | |
Current derivative liabilities | 0 | 0 | |
Noncurrent derivative liabilities | 0 | 0 | |
Total liabilities | 0 | 0 | |
Level 1 [Member] | Recurring [Member] | Interest rate contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Noncurrent derivative assets | 0 | 0 | |
Current derivative liabilities | 0 | 0 | |
Noncurrent derivative liabilities | 0 | 0 | |
Level 1 [Member] | Recurring [Member] | Foreign exchange contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current derivative assets | 0 | 0 | |
Noncurrent derivative assets | 0 | 0 | |
Current derivative liabilities | 0 | 0 | |
Noncurrent derivative liabilities | 0 | 0 | |
Level 1 [Member] | Short-term investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Total short-term investments | 0 | 0 | |
Level 1 [Member] | Long-term Investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities with readily determinable fair values | [3] | 2,210 | 2,772 |
Available-for-sale debt securities | 0 | 0 | |
Total long-term investments | 2,210 | 2,772 | |
Level 2 [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current derivative assets | 421 | 298 | |
Noncurrent derivative assets | 374 | 402 | |
Insurance contracts | [2] | 872 | 790 |
Total other noncurrent assets | 1,246 | 1,191 | |
Total assets | 7,112 | 11,170 | |
Current derivative liabilities | 172 | 420 | |
Noncurrent derivative liabilities | 1,056 | 1,000 | |
Total liabilities | 1,228 | 1,420 | |
Level 2 [Member] | Recurring [Member] | Interest rate contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Noncurrent derivative assets | 19 | 144 | |
Current derivative liabilities | 33 | 16 | |
Noncurrent derivative liabilities | 375 | 275 | |
Level 2 [Member] | Recurring [Member] | Foreign exchange contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current derivative assets | 421 | 298 | |
Noncurrent derivative assets | 354 | 258 | |
Current derivative liabilities | 139 | 404 | |
Noncurrent derivative liabilities | 682 | 725 | |
Level 2 [Member] | Short-term investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 4,401 | 4,400 | |
Total short-term investments | 5,376 | 9,524 | |
Level 2 [Member] | Long-term Investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities with readily determinable fair values | [3] | 0 | 7 |
Available-for-sale debt securities | 69 | 150 | |
Total long-term investments | 70 | 156 | |
Money market funds [Member] | Short-term investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities with readily determinable fair values | 975 | 5,124 | |
Money market funds [Member] | Level 1 [Member] | Short-term investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities with readily determinable fair values | 0 | 0 | |
Money market funds [Member] | Level 2 [Member] | Short-term investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities with readily determinable fair values | 975 | 5,124 | |
Government and agency—non-U.S. [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 1,183 | 941 | |
Government and agency—non-U.S. [Member] | Short-term investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 1,120 | 817 | |
Government and agency—non-U.S. [Member] | Long-term Investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 63 | 124 | |
Government and agency—non-U.S. [Member] | Level 1 [Member] | Short-term investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Government and agency—non-U.S. [Member] | Level 1 [Member] | Long-term Investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Government and agency—non-U.S. [Member] | Level 2 [Member] | Short-term investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 1,120 | 817 | |
Government and agency—non-U.S. [Member] | Level 2 [Member] | Long-term Investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 63 | 124 | |
Government and agency—U.S. [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 2,073 | 2,601 | |
Government and agency—U.S. [Member] | Short-term investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 2,073 | 2,601 | |
Government and agency—U.S. [Member] | Level 1 [Member] | Short-term investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Government and agency—U.S. [Member] | Level 2 [Member] | Short-term investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 2,073 | 2,601 | |
Corporate and other [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 1,214 | 1,007 | |
Corporate and other [Member] | Short-term investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 1,208 | 982 | |
Corporate and other [Member] | Long-term Investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 6 | 26 | |
Corporate and other [Member] | Level 1 [Member] | Short-term investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Corporate and other [Member] | Level 1 [Member] | Long-term Investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Corporate and other [Member] | Level 2 [Member] | Short-term investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 1,208 | 982 | |
Corporate and other [Member] | Level 2 [Member] | Long-term Investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | $ 6 | $ 26 | |
[1]Represent money market funds primarily invested in U.S. Treasury and government debt.[2] Includes life insurance policies held in restricted trusts for U.S. non-qualified employee benefit plans. The underlying invested assets in these contracts are marketable securities, which are carried at fair value, with changes in fair value recognized in Other (income)/deductions—net (see Note 4 ). Long-term equity securities of $119 million as of June 30, 2024 and $130 million as of December 31, 2023 were held in restricted trusts for U.S. non-qualified employee benefit plans. |
Financial Instruments - Finan_2
Financial Instruments - Financial Liabilities Not Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Billions | Jun. 30, 2024 | Dec. 31, 2023 |
Carrying Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value | $ 58 | $ 62 |
Estimated Fair Value [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value | $ 54 | $ 61 |
Financial Instruments - Investm
Financial Instruments - Investments by Classification Type (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | |
Short-term investments | |||
Equity securities with readily determinable fair values | [1] | $ 975 | $ 5,124 |
Available-for-sale debt securities | 4,401 | 4,400 | |
Held-to-maturity debt securities | 673 | 313 | |
Total Short-term investments | 6,048 | 9,837 | |
Long-term investments | |||
Equity securities with readily determinable fair values | [2] | 2,210 | 2,779 |
Available-for-sale debt securities | 69 | 150 | |
Held-to-maturity debt securities | 54 | 47 | |
Private equity securities at cost | [2] | 786 | 755 |
Total Long-term investments | 3,119 | 3,731 | |
Equity-method investments | 8,029 | 11,637 | |
Total long-term investments and equity-method investments | 11,149 | 15,368 | |
Held-to-maturity cash equivalents | $ 317 | $ 207 | |
[1]Represent money market funds primarily invested in U.S. Treasury and government debt.[2]Represent investments in the life sciences sector |
Financial Instruments - Schedul
Financial Instruments - Schedule of Investment Securities (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Securities, Held-to-maturity, Maturity, Fair Value [Abstract] | ||
Debt securities, amortized cost | $ 5,515 | $ 5,126 |
Debt securities, gross unrealized gains | 6 | 6 |
Debt securities, gross unrealized losses | (7) | (16) |
Debt securities, fair value | 5,514 | 5,115 |
Debt securities maturities, within 1 year, fair value | 5,391 | |
Debt securities maturities, over 1 to 5 years, fair value | 101 | |
Debt securities maturities, over 5 years, fair value | 22 | |
Time deposits and other [Member] | ||
Debt Securities, Held-to-maturity, Maturity [Abstract] | ||
Held-to-maturity securities, amortized cost | 942 | 561 |
Held-to-maturity securities, gross unrealized gains | 0 | 0 |
Held-to-maturity securities, gross unrealized losses | 0 | 0 |
Held-to-maturity securities, fair value | 942 | 561 |
Debt Securities, Held-to-maturity, Maturity, Fair Value [Abstract] | ||
Held-to-maturity securities, debt maturities, within 1 year, fair value | 892 | |
Held-to-maturity securities, debt maturities, over 1 to 5 years, fair value | 28 | |
Held-to-maturity securities, debt maturities, over 5 years, fair value | 21 | |
Government and agency—non-U.S. [Member] | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Available-for-sale debt securities, amortized cost | 1,184 | 953 |
Available-for-sale debt securities, gross unrealized gains | 4 | 2 |
Available-for-sale debt securities, gross unrealized losses | (6) | (14) |
Available-for-sale debt securities, fair value | 1,183 | 941 |
Available-for-sale Securities, Debt Maturities [Abstract] | ||
Available-for-sale securities, debt maturities, within 1 year, fair value | 1,120 | |
Available-for-sale securities, debt maturities, over 1 to 5 years, fair value | 63 | |
Available-for-sale securities, debt maturities, over 5 years, fair value | 0 | |
Debt Securities, Held-to-maturity, Maturity [Abstract] | ||
Held-to-maturity securities, amortized cost | 102 | 4 |
Held-to-maturity securities, gross unrealized gains | 0 | 0 |
Held-to-maturity securities, gross unrealized losses | 0 | 0 |
Held-to-maturity securities, fair value | 102 | 4 |
Debt Securities, Held-to-maturity, Maturity, Fair Value [Abstract] | ||
Held-to-maturity securities, debt maturities, within 1 year, fair value | 98 | |
Held-to-maturity securities, debt maturities, over 1 to 5 years, fair value | 4 | |
Held-to-maturity securities, debt maturities, over 5 years, fair value | 1 | |
Government and agency—U.S. [Member] | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Available-for-sale debt securities, amortized cost | 2,073 | 2,601 |
Available-for-sale debt securities, gross unrealized gains | 0 | 0 |
Available-for-sale debt securities, gross unrealized losses | 0 | 0 |
Available-for-sale debt securities, fair value | 2,073 | 2,601 |
Available-for-sale Securities, Debt Maturities [Abstract] | ||
Available-for-sale securities, debt maturities, within 1 year, fair value | 2,073 | |
Available-for-sale securities, debt maturities, over 1 to 5 years, fair value | 0 | |
Available-for-sale securities, debt maturities, over 5 years, fair value | 0 | |
Corporate and other [Member] | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Available-for-sale debt securities, amortized cost | 1,213 | 1,006 |
Available-for-sale debt securities, gross unrealized gains | 2 | 4 |
Available-for-sale debt securities, gross unrealized losses | (2) | (2) |
Available-for-sale debt securities, fair value | 1,214 | $ 1,007 |
Available-for-sale Securities, Debt Maturities [Abstract] | ||
Available-for-sale securities, debt maturities, within 1 year, fair value | 1,208 | |
Available-for-sale securities, debt maturities, over 1 to 5 years, fair value | 6 | |
Available-for-sale securities, debt maturities, over 5 years, fair value | $ 0 |
Financial Instruments - Inves_2
Financial Instruments - Investments - Unrealized Gains and Losses Related to Equity Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | ||
Fair Value Disclosures [Abstract] | |||||
Net (gains)/losses recognized during the period on equity securities | [1] | $ 342 | $ (135) | $ 317 | $ 316 |
Less: Net (gains)/losses recognized during the period on equity securities sold during the period | (2) | (14) | (216) | (47) | |
Net unrealized (gains)/losses during the reporting period on equity securities still held at the reporting date | [2] | $ 344 | $ (121) | $ 533 | $ 363 |
[1] Reported in Other (income)/deductions –– net. See Note 4 . Included in net unrealized (gains)/losses are observable price changes on equity securities without readily determinable fair values. As of June 30, 2024, there were cumulative impairments and downward adjustments of $306 million and upward adjustments of $214 million. Impairments, downward and upward adjustments were not material to our operations in the second quarters and first six months of 2024 and 2023. |
Financial Instruments - Inves_3
Financial Instruments - Investments - Unrealized Gains and Losses Related to Equity Securities - Footnotes (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Fair Value Disclosures [Abstract] | |
Cumulative impairment losses and downward price adjustments on equity securities | $ 306 |
Cumulative upward price adjustments on equity securities | $ 214 |
Financial Instruments - Short-t
Financial Instruments - Short-term Borrowings (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |||
Commercial paper, principal amount | $ 7,964 | $ 7,965 | |
Current portion of long-term debt, principal amount | 3,750 | 2,250 | |
Other short-term borrowings, principal amount | [1] | 320 | 252 |
Total short-term borrowings, principal amount | 12,034 | 10,467 | |
Net fair value adjustments related to hedging and purchase accounting | 0 | 5 | |
Net unamortized discounts, premiums and debt issuance costs | (90) | (121) | |
Total Short-term borrowings, including current portion of long-term debt, carried at historical proceeds, as adjusted | $ 11,944 | $ 10,350 | |
[1] Primarily includes cash collateral. See Note 7F . |
Financial Instruments - Long-Te
Financial Instruments - Long-Term Debt (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Net unamortized discounts, premiums and debt issuance costs | $ (90) | $ (121) |
Total long-term debt, carried at historical proceeds, as adjusted | 57,506 | 61,538 |
Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt, principal amount | 57,193 | 60,982 |
Net fair value adjustments related to hedging and purchase accounting | 773 | 1,039 |
Net unamortized discounts, premiums and debt issuance costs | (460) | (483) |
Total long-term debt, carried at historical proceeds, as adjusted | $ 57,506 | $ 61,538 |
Financial Instruments - Derivat
Financial Instruments - Derivative Narrative (Details) | 6 Months Ended |
Jun. 30, 2024 | |
Foreign exchange contracts [Member] | |
Derivative [Line Items] | |
Derivative term of contract | 2 years |
Financial Instruments - Fair Va
Financial Instruments - Fair Value of Derivative Financial Instruments and Related Notional Amounts (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | |
Derivative [Line Items] | |||
Asset | $ 795 | $ 700 | |
Liability | 1,228 | 1,420 | |
Derivatives designated as hedging instruments [Member] | |||
Derivative [Line Items] | |||
Asset | 698 | 546 | |
Liability | 1,112 | 1,206 | |
Derivatives designated as hedging instruments [Member] | Foreign exchange contracts [Member] | |||
Derivative [Line Items] | |||
Notional | [1] | 22,740 | 18,750 |
Asset | [1] | 678 | 403 |
Liability | [1] | 704 | 916 |
Derivatives designated as hedging instruments [Member] | Interest rate contracts [Member] | |||
Derivative [Line Items] | |||
Notional | 6,750 | 6,750 | |
Asset | 19 | 144 | |
Liability | 408 | 290 | |
Derivatives not designated as hedging instruments [Member] | Foreign exchange contracts [Member] | |||
Derivative [Line Items] | |||
Notional | 22,055 | 25,609 | |
Asset | 97 | 154 | |
Liability | 116 | 214 | |
Inventory sales [Member] | Derivatives designated as hedging instruments [Member] | Foreign exchange contracts [Member] | |||
Derivative [Line Items] | |||
Notional | $ 5,600 | $ 4,900 | |
[1] The notional amount of outstanding foreign exchange contracts hedging our intercompany forecasted inventory sales was $5.6 billion as of June 30, 2024 and $4.9 billion as of December 31, 2023. |
Financial Instruments - Deriv_2
Financial Instruments - Derivative Financial Instruments and Hedging Activities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
Amount of Gains/(Losses) Recognized in OID | [1] | $ (13) | $ 99 | $ 42 | $ 116 | ||
Derivative, Amount of Gains/(Losses), Cash Flow Hedge, Recognized in OCI | 127 | 109 | 343 | 112 | |||
Amount of Gains/(Losses) Recognized in OCI | [1] | 247 | 47 | 737 | (113) | ||
Derivative, Amount of Gains/(Losses) Reclassified from OCI into OID and COS | [2] | 147 | 163 | 159 | (140) | ||
Amount of Gains/(Losses) Reclassified from OCI into OID and COS | [1] | 187 | 196 | 235 | (73) | ||
Designated as Hedging Instrument [Member] | Foreign currency long-term debt [Member] | |||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
Non-Derivative, Amount of Gains/(Losses) Recognized in OCI | [1],[3] | 8 | (1) | 26 | (17) | ||
Non-Derivative, Amount of Gains/(Losses) Reclassified from OCI into OID and COS | [1],[3] | 0 | 0 | 0 | 0 | ||
Derivative Financial Instruments Not Designated as Hedges [Member] | Foreign exchange contracts [Member] | |||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
Derivative, Amount of Gains/(Losses) Recognized in OID | [1] | (13) | 99 | 42 | 116 | ||
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Interest rate contracts [Member] | |||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
Derivative, Amount of Gains/(Losses), Cash Flow Hedge, Recognized in OCI | 0 | [1] | 68 | [1] | 0 | 68 | |
Derivative, Amount of Gains/(Losses) Reclassified from OCI into OID and COS | 0 | [1] | 0 | [1] | 0 | 0 | |
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Foreign exchange contracts [Member] | |||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
Derivative, Amount of Gains/(Losses), Cash Flow Hedge, Recognized in OCI | [1],[4] | 117 | 6 | 327 | (47) | ||
Derivative, Amount of Gains/(Losses) Recognized in OCI, excluded from effectiveness testing and amortized into earnings | [1],[5] | 10 | 34 | 17 | 90 | ||
Derivative, Amount of Gains/(Losses) Reclassified from OCI into OID and COS | [1],[4] | 137 | 126 | 142 | (230) | ||
Derivative, Amount of Gains/(Losses) Reclassified from OCI into OID and COS, excluded from effectiveness testing | [1],[5] | 10 | 37 | 17 | 90 | ||
Fair Value Hedging [Member] | Designated as Hedging Instrument [Member] | Interest rate contracts [Member] | |||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
Derivative, Amount of Gains/(Losses), Fair Value Hedge, Recognized in OID | [1] | (36) | (45) | (224) | 3 | ||
Derivative, Amount of Gains/(Losses), Hedged Item, Recognized in OID | [1] | 36 | 45 | 224 | (3) | ||
Net Investment Hedging [Member] | Designated as Hedging Instrument [Member] | Foreign exchange contracts [Member] | |||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
Derivative, Amount of Gains/(Losses) Recognized in OCI, excluded from effectiveness testing and amortized into earnings | [1],[5] | 31 | 9 | 52 | 76 | ||
Derivative, Amount of Gains/(Losses), Net Investment Hedge, Recognized in OCI | [1] | 81 | (70) | 315 | (283) | ||
Derivative, Amount of Gains/(Losses) Reclassified from OCI into OID and COS, excluded from effectiveness testing | [1],[5] | 40 | 33 | 76 | 67 | ||
Derivative, Amount of Gains/(Losses) Reclassified from OCI into OID and COS | [1] | $ 0 | $ 0 | $ 0 | $ 0 | ||
[1] OID = Other (income)/deductions—net, included in Other (income)/deductions—net in the condensed consolidated statements of operations . COS = Cost of Sales, included in Cost of sales in the condensed consolidated statements of operations. OCI = Other comprehensive income/(loss), included in the condensed consolidated statements of comprehensive income/(loss) . Reclassified into Other (income)/deductions—net and Cost of sales. See Note 7E . Long-term debt includes foreign currency borrowings, which are used in net investment hedges; the related carrying values as of June 30, 2024 and December 31, 2023 were $799 million and $824 million, respectively. The amounts reclassified from OCI into COS were: • a net gain of $38 million in the second quarter of 2024; • a net gain of $70 million in the first six months of 2024; • a net gain of $55 million in the second quarter of 2023; and • a net gain of $146 million in the first six months of 2023. The remaining amounts were reclassified from OCI into OID. Based on quarter-end foreign exchange rates that are subject to change, we expect to reclassify a pre-tax gain of $157 million within the next 12 months into income . The maximum length of time over which we are hedging our exposure to the variability in future foreign exchange cash flows is approximately 19 years and relates to foreign currency debt. The amounts reclassified from OCI were reclassified into OID. |
Financial Instruments - Deriv_3
Financial Instruments - Derivative Financial Instruments and Hedging Activities - Footnotes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | Dec. 31, 2023 | ||
Derivative [Line Items] | ||||||
Gain reclassified from OCI into COS | [1] | $ 147 | $ 163 | $ 159 | $ (140) | |
Foreign currency long-term debt [Member] | ||||||
Derivative [Line Items] | ||||||
Long-term debt | 799 | 799 | $ 824 | |||
Designated as Hedging Instrument [Member] | Foreign exchange contracts [Member] | ||||||
Derivative [Line Items] | ||||||
Pre-tax gain expected to be reclassified within the next 12 months | $ 157 | $ 157 | ||||
Remaining period of hedging exposure | 19 years | 19 years | ||||
Designated as Hedging Instrument [Member] | Cost of sales [Member] | Foreign exchange contracts [Member] | ||||||
Derivative [Line Items] | ||||||
Gain reclassified from OCI into COS | $ 38 | $ 55 | $ 70 | $ 146 | ||
[1] Reclassified into Other (income)/deductions—net and Cost of sales. See Note 7E . |
Financial Instruments - Cumulat
Financial Instruments - Cumulative Basis Adjustments for Fair Value Hedges (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |||
Carrying Amount of Actively Hedged Liabilities | [1] | $ 7,175 | $ 7,196 |
Cumulative Amount of Fair Value Hedging Adjustment Increase/(Decrease) to Carrying Amount, Active Hedging Relationships, Liability | (355) | (131) | |
Cumulative Amount of Fair Value Hedging Adjustment Increase/(Decrease) to Carrying Amount, Discontinued Hedging Relationships, Liability | $ 924 | $ 957 | |
[1] Carrying amounts exclude the cumulative amount of fair value hedging adjustments. |
Financial Instruments - Credit
Financial Instruments - Credit Risk (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Fair Value Disclosures [Abstract] | |
Derivatives in a net payable position | $ 775 |
Collateral posted | 764 |
Derivatives in a net receivable position | 281 |
Collateral received | $ 288 |
Other Financial Information - I
Other Financial Information - Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | |
Other Financial Information [Abstract] | |||
Finished goods | $ 3,220 | $ 3,495 | |
Work-in-process | 7,072 | 5,688 | |
Raw materials and supplies | 1,156 | 1,007 | |
Inventories | [1] | 11,447 | 10,189 |
Noncurrent inventories not included above | [2] | $ 2,918 | $ 4,568 |
[1] The increase from December 31, 2023 reflects higher inventory levels for certain products mainly for supply recovery and network strategy. Included in Other noncurrent assets . The decrease from December 31, 2023 is primarily driven by an adjustment to the fair value step-up of acquired Seagen inventory. Based on our current estimates and assumptions, there are no recoverability issues for these amounts. |
Other Financial Information - C
Other Financial Information - Comirnaty Gross Profit Split (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Other current assets | $ 4,190 | $ 4,911 |
Other current liabilities | 16,410 | 20,537 |
BioNTech [Member] | Comirnaty [Member] | Collaborative Arrangement [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Other current assets | $ 275 | |
Other current liabilities | $ 2,000 |
Other Financial Information - S
Other Financial Information - Supplier Finance Program Obligation (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Other Financial Information [Abstract] | ||
Supplier finance program payable | $ 593 | $ 791 |
Identifiable Intangible Asset_3
Identifiable Intangible Assets and Goodwill - Schedule of Finite-lived and Indefinite-lived Intangible Assets (Detail) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | |
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, gross carrying amount | $ 103,959 | $ 102,944 | |
Finite-lived intangible assets, accumulated amortization | [1] | (65,365) | (62,828) |
Finite-lived intangible assets, net | 38,594 | 40,116 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | 22,646 | 24,784 | |
Intangible assets, gross carrying amount | [1] | 126,605 | 127,728 |
Finite-lived intangible assets, accumulated amortization | [1] | (65,365) | (62,828) |
Identifiable Intangible Assets, less Accumulated Amortization | [1] | 61,240 | 64,900 |
Brands [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | [2] | 0 | 827 |
IPR&D [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | [3] | 21,976 | 23,193 |
License Agreements and Other [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | 670 | 763 | |
Developed technology rights [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, gross carrying amount | [4] | 99,449 | 99,267 |
Finite-lived intangible assets, accumulated amortization | [4] | (62,905) | (60,493) |
Finite-lived intangible assets, net | [4] | 36,543 | 38,773 |
Indefinite-lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, accumulated amortization | [4] | (62,905) | (60,493) |
Brands [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, gross carrying amount | [2] | 1,749 | 922 |
Finite-lived intangible assets, accumulated amortization | [2] | (933) | (877) |
Finite-lived intangible assets, net | [2] | 816 | 45 |
Indefinite-lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, accumulated amortization | [2] | (933) | (877) |
License Agreements and Other [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, gross carrying amount | 2,761 | 2,756 | |
Finite-lived intangible assets, accumulated amortization | (1,527) | (1,458) | |
Finite-lived intangible assets, net | 1,234 | 1,297 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, accumulated amortization | $ (1,527) | $ (1,458) | |
[1] The decrease is primarily due to amortization expense of $2.6 billion, measurement period adjustments related to our acquisition of Seagen of $625 million (see Note 2A ) and impairments of $349 million (see Note 4 ). The changes in the gross carrying amounts reflect the transfer of $827 million from indefinite-lived brands to finite-lived brands for Depo-Medrol. The decrease in the gross carrying amount reflects the transfer of IPR&D to developed technology rights of $727 million for talazoparib (Talzenna), $250 million of measurement period adjustments related to our acquisition of Seagen (see Note 2A ) and impairments of $240 million (see Note 4 ) . The increase in the gross carrying amount includes the transfer of IPR&D to developed technology rights of $727 million for talazoparib (Talzenna), partially offset by $385 million of measurement period adjustments related to our acquisition of Seagen (see Note 2A ) and impairments of $109 million (see Note 4 ). |
Identifiable Intangible Asset_4
Identifiable Intangible Assets and Goodwill - Footnotes (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 USD ($) | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset impairment charge | $ 349 | |
Amortization expense for finite-lived intangible assets | 2,600 | |
Seagen [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangibles, measurement period adjustments | 385 | |
In-process research and development, measurement period adjustments | 250 | |
Identifiable intangible assets, net of adjustments | 625 | |
IPR&D [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset impairment charge | 240 | [1] |
talazoparib (Talzenna) [Member] | IPR&D [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets, period increase (decrease) | (727) | |
Depo-Medrol [Member] | Brands [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets, period increase (decrease) | (827) | |
Developed technology rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset impairment charge | 109 | [1] |
Developed technology rights [Member] | talazoparib (Talzenna) [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, period increase | 727 | |
Brands [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, period increase | $ 827 | |
[1] Reflects intangible assets written down to fair value in 2024. Fair value was determined using the income approach, specifically the multi-period excess earnings method, also known as the discounted cash flow method. We started with a forecast of all the expected net cash flows for the asset and then applied an asset-specific discount rate to arrive at a net present value amount. Some of the more significant estimates and assumptions inherent in this approach include: the amount and timing of the projected net cash flows, which includes the expected impact of competitive, legal and/or regulatory forces on the product; the discount rate, which seeks to reflect the various risks inherent in the projected cash flows; and the tax rate, which seeks to incorporate the geographic diversity of the projected cash flows. |
Identifiable Intangible Asset_5
Identifiable Intangible Assets and Goodwill - Goodwill (Detail) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 USD ($) | [1] | |
Goodwill [Roll Forward] | ||
Balance, January 1, 2024 | $ 67,783 | |
Additions | 677 | [2] |
Impact of foreign exchange | (16) | |
Balance, June 30, 2024 | $ 68,445 | |
[1] All goodwill is assigned within the Biopharma reportable segment. As a result of the organizational changes to the commercial structure within the Biopharma operating segment effective in the first quarter of 2024 (see Note 13A ), our goodwill is required to be reallocated amongst impacted reporting units. The allocation of goodwill is a complex process that requires, among other things, that we determine the fair value of each reporting unit under our old and new organizational structure and the portions being transferred. Therefore, we have not yet completed the allocation, but it will be completed in the current year. Additions primarily represent measurement period adjustments related to our acquisition of Seagen (see Note 2A ). |
Pension and Postretirement Be_3
Pension and Postretirement Benefit Plans - Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | |
Pension Plan [Member] | U.S. [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 0 | $ 0 | $ 0 | $ 0 |
Interest cost | 139 | 147 | 277 | 295 |
Expected return on plan assets | (208) | (194) | (416) | (389) |
Amortization of prior service cost/(credit) | 0 | 0 | 1 | 1 |
Actuarial (gains)/losses | 0 | 5 | 0 | 14 |
Curtailments | 0 | 0 | 0 | 0 |
Special termination benefits | 0 | 5 | 0 | 6 |
Net periodic benefit cost/(credit) reported in income | (69) | (37) | (139) | (73) |
Pension Plan [Member] | International [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 23 | 22 | 44 | 43 |
Interest cost | 77 | 72 | 155 | 143 |
Expected return on plan assets | (80) | (76) | (160) | (152) |
Amortization of prior service cost/(credit) | 1 | 0 | 2 | 0 |
Actuarial (gains)/losses | 0 | 0 | 0 | 3 |
Curtailments | 0 | 0 | (2) | (1) |
Special termination benefits | 2 | 0 | 6 | 0 |
Net periodic benefit cost/(credit) reported in income | 23 | 18 | 46 | 36 |
Postretirement Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 4 | 3 | 7 | 6 |
Interest cost | 6 | 5 | 12 | 11 |
Expected return on plan assets | (13) | (11) | (25) | (22) |
Amortization of prior service cost/(credit) | (29) | (30) | (59) | (60) |
Actuarial (gains)/losses | 0 | 0 | 0 | 0 |
Curtailments | 0 | (7) | 0 | (12) |
Special termination benefits | 0 | 0 | 0 | 0 |
Net periodic benefit cost/(credit) reported in income | $ (33) | $ (39) | $ (65) | $ (77) |
Pension and Postretirement Be_4
Pension and Postretirement Benefit Plans - Narrative (Detail) - Pension Plan [Member] $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
U.S. [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Contributions by employer | $ 83 |
International [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Contributions by employer | $ 98 |
Earnings Per Common Share Att_3
Earnings Per Common Share Attributable to Pfizer Inc. Common Shareholders (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | ||||
EPS Numerator | |||||||
Income from continuing operations attributable to Pfizer Inc. common shareholders | $ 24 | $ 2,329 | $ 3,144 | $ 7,871 | |||
Discontinued operations––net of tax | 17 | (2) | 12 | (1) | |||
Net income attributable to Pfizer Inc. common shareholders | 41 | 2,327 | 3,156 | 7,870 | |||
EPS Numerator––Diluted | |||||||
Income from continuing operations attributable to Pfizer Inc. common shareholders and assumed conversions | 24 | 2,329 | 3,144 | 7,871 | |||
Discontinued operations––net of tax | 17 | (2) | 12 | (1) | |||
Net income attributable to Pfizer Inc. common shareholders and assumed conversions | $ 41 | $ 2,327 | $ 3,156 | $ 7,870 | |||
EPS Denominator | |||||||
Weighted-average number of common shares outstanding––Basic (in shares) | 5,666 | 5,646 | 5,662 | 5,640 | |||
Common-share equivalents (in shares) | 29 | 67 | 35 | 80 | |||
Weighted-average number of common shares outstanding––Diluted (in shares) | 5,696 | 5,713 | 5,696 | 5,720 | |||
Anti-dilutive common stock equivalents (in shares) | 23 | 3 | [1] | 24 | [1] | 2 | [1] |
[1] These common stock equivalents were outstanding for the periods presented, but were not included in the computation of diluted EPS for those periods because their inclusion would have had an anti-dilutive effect. |
Contingencies and Certain Com_2
Contingencies and Certain Commitments - Patent Litigation (Details) $ in Millions | 1 Months Ended | |||||||||||
Jul. 31, 2024 patent | Apr. 30, 2024 patent | Mar. 31, 2024 patent | Nov. 30, 2023 patent | Aug. 31, 2023 patent | Jun. 30, 2023 patent | May 31, 2023 patent | Apr. 30, 2023 patent | Sep. 30, 2022 patent | Aug. 31, 2022 patent | Jul. 31, 2022 patent | Jun. 30, 2024 USD ($) | |
Gain Contingencies [Line Items] | ||||||||||||
Threshold for disclosure of proceedings under environmental laws | $ | $ 1 | |||||||||||
Mektovi [Member] | Pfizer Versus Several Generic Manufacturers [Member] | Patent Infringement [Member] | Pending Litigation [Member] | ||||||||||||
Gain Contingencies [Line Items] | ||||||||||||
Gain contingency, number of patents allegedly infringed upon | 6 | |||||||||||
Mektovi [Member] | Pfizer Versus Several Generic Manufacturers [Member] | Patent Infringement [Member] | Pending Litigation [Member] | Expiring 2030 [Member] | ||||||||||||
Gain Contingencies [Line Items] | ||||||||||||
Gain contingency, number of patents allegedly infringed upon | 2 | |||||||||||
Mektovi [Member] | Pfizer Versus Several Generic Manufacturers [Member] | Patent Infringement [Member] | Pending Litigation [Member] | Expiring 2033 [Member] | ||||||||||||
Gain Contingencies [Line Items] | ||||||||||||
Gain contingency, number of patents allegedly infringed upon | 2 | |||||||||||
Mektovi [Member] | Pfizer Versus Teva Pharmaceuticals, Inc. [Member] | Patent Infringement [Member] | Pending Litigation [Member] | ||||||||||||
Gain Contingencies [Line Items] | ||||||||||||
Gain contingency, number of patents allegedly infringed upon | 3 | |||||||||||
Mektovi [Member] | Pfizer Versus Teva Pharmaceuticals, Inc. [Member] | Patent Non-Infringement [Member] | Pending Litigation [Member] | Teva Pharmaceuticals, Inc [Member] | ||||||||||||
Gain Contingencies [Line Items] | ||||||||||||
Gain contingency, number of patents allegedly infringed upon | 2 | |||||||||||
Comirnaty [Member] | Alnylam Patent Infringement Case [Member] | ||||||||||||
Gain Contingencies [Line Items] | ||||||||||||
Loss contingency, number of patents allegedly infringed upon | 4 | |||||||||||
Comirnaty [Member] | ModernaTX U.S. Patent Infringement Case [Member] | ||||||||||||
Gain Contingencies [Line Items] | ||||||||||||
Loss contingency, number of patents allegedly infringed upon | 3 | |||||||||||
Loss contingency, patents under review | 2 | |||||||||||
Comirnaty [Member] | ModernaTX European Patent Infringement Case [Member] | ||||||||||||
Gain Contingencies [Line Items] | ||||||||||||
Loss contingency, number of patents allegedly infringed upon | 2 | 2 | ||||||||||
Loss contingency, patents allegedly infringed and subsequently revoked | 1 | |||||||||||
Comirnaty [Member] | ModernaTX European Patent Infringement Case [Member] | Subsequent Event [Member] | ||||||||||||
Gain Contingencies [Line Items] | ||||||||||||
Loss contingency, patents ruled invalid and subsequently revoked | 1 | |||||||||||
Comirnaty [Member] | Arbutus and Genevant U.S. Patent Infringement Case [Member] | ||||||||||||
Gain Contingencies [Line Items] | ||||||||||||
Loss contingency, number of patents allegedly infringed upon | 5 | |||||||||||
Comirnaty [Member] | GlaxoSmithKline Biologics SA and GlaxoSmithKline LLC US Patent Infringement Case [Member] | ||||||||||||
Gain Contingencies [Line Items] | ||||||||||||
Loss contingency, number of patents allegedly infringed upon | 5 | |||||||||||
Comirnaty [Member] | Pfizer, BioNTech and BioNTech Manufacturing GmbH Versus CureVac, Judgment of Non-Infringement [Member] | ||||||||||||
Gain Contingencies [Line Items] | ||||||||||||
Loss contingency, number of patents not infringed | 3 | |||||||||||
Loss contingency, number of patents found infringed | 3 | |||||||||||
Abrysvo [Member] | GlaxoSmithKline Biologics SA and GlaxoSmithKline LLC US Patent Infringement Case [Member] | ||||||||||||
Gain Contingencies [Line Items] | ||||||||||||
Loss contingency, number of patents allegedly infringed upon | 2 | 4 |
Contingencies and Certain Com_3
Contingencies and Certain Commitments - Product Litigation, Commercial and Other Matters, Legal Proceedings (Details) | 12 Months Ended |
Dec. 31, 2018 manufacturer | |
Pfizer and Hospira and Various Other Manufacturers Versus Mississippi Attorney General [Member] | Docetaxel [Member] | Pending Litigation [Member] | |
Loss Contingencies [Line Items] | |
Number of defendants other than main defendant | 8 |
Segment, Geographic and Other_3
Segment, Geographic and Other Revenue Information - Narrative (Detail) treatmentCourse in Millions, $ in Millions | 2 Months Ended | 3 Months Ended | 6 Months Ended | |||
Feb. 29, 2024 treatmentCourse | Jun. 30, 2024 USD ($) treatmentCourse | Mar. 31, 2024 USD ($) | Jun. 30, 2024 USD ($) treatmentCourse operatingSegment | Jul. 02, 2023 | Dec. 31, 2023 USD ($) treatmentCourse | |
Segment Reporting Information [Line Items] | ||||||
Number of segments | operatingSegment | 3 | |||||
Total assets | $ 216,193 | $ 216,193 | $ 226,501 | |||
Deferred revenues, current | 2,528 | 2,528 | 2,700 | |||
Comirnaty [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Remaining performance obligation | $ 6,000 | 6,000 | ||||
Paxlovid [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Reversal of revenue | $ 3,500 | |||||
Estimated government emergency use authorization inventory to be returned to company, number of treatment courses | treatmentCourse | 6.5 | |||||
Favorable adjustment for government emergency use authorization inventory returned to the company during the period | $ 771 | $ 771 | ||||
Government emergency use authorization inventory returned to the company during the period, number of treatment courses | treatmentCourse | 5.1 | |||||
Paxlovid, NDA-Labeled, U.S. Strategic National Stockpile [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Supply commitment, minimum amount committed, number of treatment courses | treatmentCourse | 1 | 1 | ||||
Paxlovid, NDA-Labeled [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Supply commitment, minimum amount committed, number of treatment courses | treatmentCourse | 6.1 | 6.1 | ||||
Paxlovid | ||||||
Segment Reporting Information [Line Items] | ||||||
Remaining performance obligation | $ 2,000 | $ 2,000 | ||||
Government and Government Sponsored [Member] | Paxlovid and Comirnaty | ||||||
Segment Reporting Information [Line Items] | ||||||
Deferred revenues | 4,300 | 4,300 | $ 5,100 | |||
Deferred revenues, current | 2,500 | 2,500 | 2,600 | |||
Deferred revenues, noncurrent | 1,800 | 1,800 | $ 2,500 | |||
Deferred revenue recognized | $ 200 | $ 1,200 | ||||
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | US Government [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Concentration risk | 7% | 9% |
Segment, Geographic and Other_4
Segment, Geographic and Other Revenue Information - Schedule of Segment Reporting Information by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | ||
Segment Reporting Information [Line Items] | |||||
Revenues: | $ 13,283 | $ 13,007 | $ 28,162 | $ 31,492 | |
Income/(loss) from continuing operations before provision/(benefit) for taxes on income/(loss) | [1] | (103) | 2,269 | 3,318 | 8,539 |
Other Business Activities [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues: | [2] | 292 | 317 | 567 | 630 |
Income/(loss) from continuing operations before provision/(benefit) for taxes on income/(loss) | [1],[2] | (1,985) | (910) | (3,992) | (2,225) |
Reconciling Items [Member] | Amortization of Intangible Assets [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Income/(loss) from continuing operations before provision/(benefit) for taxes on income/(loss) | [1] | (1,307) | (1,184) | (2,615) | (2,287) |
Reconciling Items [Member] | Acquisition-Related Items [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Income/(loss) from continuing operations before provision/(benefit) for taxes on income/(loss) | [1] | (617) | (387) | (1,125) | (550) |
Reconciling Items [Member] | Certain Significant Items [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Income/(loss) from continuing operations before provision/(benefit) for taxes on income/(loss) | [1],[3] | (2,091) | (293) | (2,469) | (958) |
Biopharma [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues: | 12,991 | 12,690 | 27,595 | 30,863 | |
Biopharma [Member] | Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues: | [4] | 12,991 | 12,690 | 27,595 | 30,863 |
Income/(loss) from continuing operations before provision/(benefit) for taxes on income/(loss) | [1],[4] | $ 5,897 | $ 5,042 | $ 13,519 | $ 14,559 |
[1] Income/(loss) from continuing operations before provision/(benefit) for taxes on income/(loss). As described above, in connection with the organizational changes effective in the first quarter of 2024, costs associated with R&D and medical and safety activities managed by our global ORD and PRD organizations and overhead costs associated with our manufacturing operations are now included in Biopharma’s earnings. We have reclassified $2.0 billion and $3.4 billion of net costs in the second quarter and first six months of 2023, respectively, from Other business activities to Biopharma to conform to the current period presentation. Other business activities include revenues and costs associated with PC1 and Pfizer Ignite as well as costs that we do not allocate to our operating segments, per above. Certain significant items are substantive and/or unusual, and in some cases recurring, items (as noted above). Earnings in the second quarter and first six months of 2024 includes, among other items, restructuring charges/(credits) and implementation costs and additional depreciation—asset restructuring of $1.2 billion (primarily recorded in Restructuring charges and certain acquisition-related costs ). See Note 3 . Biopharma’s revenues and earnings in the first six months of 2024 reflect a non-cash favorable product return adjustment of $771 million recorded in the first quarter of 2024 (see Note 13C ). Biopharma’s earnings also include dividend income from our investment in ViiV of $74 million in the second quarter of 2024 and $91 million in the second quarter of 2023, and $135 million in the first six months of 2024 and $183 million in the first six months of 2023. |
Segment, Geographic and Other_5
Segment, Geographic and Other Revenue Information - Schedule of Segment Reporting Information by Segment - Footnotes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | ||
Segment Reporting Information [Line Items] | ||||||
Income from continuing operations before provision/(benefit) for taxes on income (loss) | [1] | $ 103 | $ (2,269) | $ (3,318) | $ (8,539) | |
Restructuring charges and certain acquisition-related costs | 1,254 | 214 | 1,356 | 222 | ||
ViiV [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Dividend income | (135) | (183) | ||||
Biopharma [Member] | ViiV [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Dividend income | (74) | (91) | (135) | (183) | ||
Paxlovid [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Favorable adjustment for government emergency use authorization inventory returned to the company during the period | $ 771 | 771 | ||||
Paxlovid [Member] | Biopharma [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Favorable adjustment for government emergency use authorization inventory returned to the company during the period | 771 | 771 | ||||
Other Business Activities [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Income from continuing operations before provision/(benefit) for taxes on income (loss) | [1],[2] | 1,985 | 910 | 3,992 | 2,225 | |
Reconciling Items [Member] | Certain Significant Items [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Income from continuing operations before provision/(benefit) for taxes on income (loss) | [1],[3] | 2,091 | $ 293 | 2,469 | $ 958 | |
Restructuring charges and certain acquisition-related costs | 1,200 | 1,200 | ||||
Reclassification Other [Member] | Other Business Activities [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Income from continuing operations before provision/(benefit) for taxes on income (loss) | $ (2,000) | $ (3,400) | ||||
[1] Income/(loss) from continuing operations before provision/(benefit) for taxes on income/(loss). As described above, in connection with the organizational changes effective in the first quarter of 2024, costs associated with R&D and medical and safety activities managed by our global ORD and PRD organizations and overhead costs associated with our manufacturing operations are now included in Biopharma’s earnings. We have reclassified $2.0 billion and $3.4 billion of net costs in the second quarter and first six months of 2023, respectively, from Other business activities to Biopharma to conform to the current period presentation. Other business activities include revenues and costs associated with PC1 and Pfizer Ignite as well as costs that we do not allocate to our operating segments, per above. Certain significant items are substantive and/or unusual, and in some cases recurring, items (as noted above). Earnings in the second quarter and first six months of 2024 includes, among other items, restructuring charges/(credits) and implementation costs and additional depreciation—asset restructuring of $1.2 billion (primarily recorded in Restructuring charges and certain acquisition-related costs ). See Note 3 . |
Segment, Geographic and Other_6
Segment, Geographic and Other Revenue Information - Revenues by Geographic Area (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues: | $ 13,283 | $ 13,007 | $ 28,162 | $ 31,492 |
Percentage change in revenue | 2% | (11.00%) | ||
U.S. [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues: | $ 7,892 | 6,458 | $ 17,406 | 15,169 |
Percentage change in revenue | 22% | 15% | ||
International Developed Markets [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues: | $ 3,164 | 4,125 | $ 6,362 | 9,759 |
Percentage change in revenue | (23.00%) | (35.00%) | ||
International Emerging Markets [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues: | $ 2,227 | $ 2,423 | $ 4,394 | $ 6,564 |
Percentage change in revenue | (8.00%) | (33.00%) |
Segment, Geographic and Other_7
Segment, Geographic and Other Revenue Information - Revenues by Products (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | ||
Revenue from External Customer [Line Items] | |||||
Revenues: | $ 13,283 | $ 13,007 | $ 28,162 | $ 31,492 | |
Alliance revenues | [1] | 2,067 | 1,967 | 4,240 | 4,028 |
Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues: | 12,991 | 12,690 | 27,595 | 30,863 | |
Biopharma [Member] | U.S. Commercial Division [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues: | 4,911 | 4,200 | 11,764 | 10,815 | |
Biopharma [Member] | Oncology Division [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues: | 2,918 | 2,167 | 5,490 | 4,150 | |
Biopharma [Member] | International Commercial Division [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues: | 5,163 | 6,323 | 10,341 | 15,898 | |
Pfizer CentreOne [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues: | [2] | 278 | 307 | 535 | 615 |
Pfizer Ignite [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues: | 15 | 10 | 32 | 14 | |
Total Alliance revenues [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Alliance revenues | 2,067 | 1,967 | 4,240 | 4,028 | |
Royalty revenues | |||||
Revenue from External Customer [Line Items] | |||||
Royalty revenue | [1] | 345 | 273 | 608 | 477 |
Primary Care [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues: | 4,952 | 5,884 | 12,163 | 17,444 | |
Primary Care [Member] | Eliquis [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues: | [3] | 1,877 | 1,762 | 3,917 | 3,636 |
Primary Care [Member] | Prevnar Family [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues: | 1,359 | 1,431 | 3,050 | 3,033 | |
Primary Care [Member] | Paxlovid [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues: | [4] | 251 | 143 | 2,286 | 4,212 |
Primary Care [Member] | Comirnaty [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues: | 195 | 1,488 | 548 | 4,552 | |
Primary Care [Member] | Nurtec ODT/Vydura [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues: | 356 | 247 | 533 | 414 | |
Primary Care [Member] | Abrysvo [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues: | 56 | 0 | 201 | 0 | |
Primary Care [Member] | Premarin family [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues: | 108 | 95 | 193 | 207 | |
Primary Care [Member] | FSME-IMMUN/TicoVac [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues: | 100 | 101 | 165 | 146 | |
Primary Care [Member] | All other Primary Care [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues: | 651 | 616 | 1,269 | 1,244 | |
Specialty Care [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues: | 4,083 | 3,656 | 7,926 | 7,272 | |
Specialty Care [Member] | Vyndaqel family [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues: | 1,323 | 782 | 2,460 | 1,468 | |
Specialty Care [Member] | Xeljanz [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues: | 303 | 469 | 497 | 706 | |
Specialty Care [Member] | Enbrel (Outside the U.S. and Canada) [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues: | 179 | 219 | 338 | 419 | |
Specialty Care [Member] | Sulperazon [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues: | 144 | 177 | 311 | 497 | |
Specialty Care [Member] | Zavicefta [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues: | 150 | 132 | 275 | 248 | |
Specialty Care [Member] | Zithromax [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues: | 74 | 44 | 274 | 194 | |
Specialty Care [Member] | Inflectra [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues: | 97 | 74 | 255 | 252 | |
Specialty Care [Member] | Genotropin [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues: | 119 | 74 | 239 | 222 | |
Specialty Care [Member] | BeneFIX [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues: | 103 | 106 | 206 | 215 | |
Specialty Care [Member] | Octagam [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues: | 104 | 66 | 179 | 111 | |
Specialty Care [Member] | Oxbryta [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues: | 92 | 77 | 176 | 148 | |
Specialty Care [Member] | Cibinqo [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues: | 47 | 38 | 89 | 54 | |
Specialty Care [Member] | All other Hospital [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues: | [5] | 1,114 | 1,213 | 2,188 | 2,365 |
Specialty Care [Member] | All other Specialty Care [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues: | 234 | 185 | 440 | 373 | |
Oncology [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues: | 3,956 | 3,149 | 7,505 | 6,146 | |
Oncology [Member] | Ibrance [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues: | 1,130 | 1,247 | 2,184 | 2,391 | |
Oncology [Member] | Xtandi [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues: | [6] | 495 | 423 | 913 | 763 |
Oncology [Member] | Padcev [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues: | 394 | 0 | 735 | 0 | |
Oncology [Member] | Oncology Biosimilars [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues: | [7] | 279 | 363 | 543 | 775 |
Oncology [Member] | Adcetris [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues: | 279 | 0 | 536 | 0 | |
Oncology [Member] | Inlyta [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues: | 252 | 262 | 489 | 521 | |
Oncology [Member] | Lorbrena [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues: | 169 | 121 | 332 | 234 | |
Oncology [Member] | Bosulif [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues: | 167 | 154 | 313 | 304 | |
Oncology [Member] | Braftovi/Mektovi [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues: | [8] | 148 | 113 | 264 | 215 |
Oncology [Member] | Tukysa [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues: | 121 | 0 | 227 | 0 | |
Oncology [Member] | Tivdak [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues: | 33 | 0 | 60 | 0 | |
Oncology [Member] | Talzenna [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues: | 32 | 12 | 55 | 22 | |
Oncology [Member] | All other Oncology [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues: | $ 457 | $ 455 | $ 853 | $ 923 | |
[1] See Note 1A . PC1 includes revenues from our contract manufacturing and our active pharmaceutical ingredient sales operation, as well as revenues related to our manufacturing and supply agreements with legacy Pfizer businesses/partnerships. Primarily reflects Alliance revenues and product revenues. The first six months of 2024 includes a $771 million favorable final adjustment recorded in the first quarter of 2024 to the estimated non-cash revenue reversal of $3.5 billion recorded in the fourth quarter of 2023, reflecting 5.1 million EUA-labeled treatment courses returned by the U.S. government through February 29, 2024 versus the estimated 6.5 million treatment courses that were expected to be returned as of December 31, 2023. Includes, among other Hospital products, amounts previously presented as All other Anti-infectives and Ig Portfolio. Primarily reflects Alliance revenues and royalty revenues. Biosimilars are highly similar versions of approved and authorized biological medicines. Oncology biosimilars primarily include Retacrit, Ruxience, Zirabev, Trazimera and Nivestym. Erbitux is a registered trademark of ImClone LLC. |
Segment, Geographic and Other_8
Segment, Geographic and Other Revenue Information - Revenues by Products - Footnotes (Details) - Paxlovid [Member] treatmentCourse in Millions, $ in Millions | 2 Months Ended | 3 Months Ended | 6 Months Ended | |
Feb. 29, 2024 treatmentCourse | Mar. 31, 2024 USD ($) | Jun. 30, 2024 USD ($) | Dec. 31, 2023 USD ($) treatmentCourse | |
Revenue from External Customer [Line Items] | ||||
Favorable adjustment for government emergency use authorization inventory returned to the company during the period | $ | $ 771 | $ 771 | ||
Reversal of revenue | $ | $ 3,500 | |||
Government emergency use authorization inventory returned to the company during the period, number of treatment courses | treatmentCourse | 5.1 | |||
Estimated government emergency use authorization inventory to be returned to company, number of treatment courses | treatmentCourse | 6.5 |