Other (Income)/Deductions—Net (Tables)

6 Months Ended

Jun. 28, 2026

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 28, 2026		June 29, 2025		June 28, 2026		June 29, 2025
Interest income	$	(113)	$	(156)	$	(228)	$	(299)
Interest expense	667		654		1,336		1,308
Net interest expense	554		498		1,108		1,009
Net (gains)/losses recognized during the period on equity securities	37		(75)		46		295

Net periodic benefit costs/(credits) other than service costs	(83)		(101)		(155)		(260)
Certain legal matters, net(a)	842		422		1,033		564
Certain asset impairments(b)	4,325		93		4,325		317
Net gain from the sale of investment in ViiV(c)	(1,870)		—		(1,870)		—
Changes in fair value of contingent consideration liabilities(d)	255		34		550		42
Other, net(e)	(344)		(131)		(460)		(275)
Other (income)/deductions––net	$	3,716	$	739	$	4,577	$	1,692

(a)The amounts for the second quarter and first six months of 2026 and 2025 primarily include certain product liability and other legal expenses.

(b)The amounts for the second quarter and first six months of 2026 represent intangible asset impairment charges associated with our Biopharma segment, composed of: (i) $3.8 billion in impairments of IPR&D assets, associated with a Phase 3 study for sigvotatug vedotin for the second line treatment of metastatic non-squamous NSCLC, reflecting unfavorable clinical trial results, and (ii) $525 million for Oxbryta (voxelotor) developed technology rights, after engaging with the FDA in July 2026 to discuss their assessment of data and analyses, and it was determined there was no viable pathway to return Oxbryta to the market in the U.S. The amount for the first six months of 2025 primarily included an intangible asset impairment charge associated with our Biopharma segment of $210 million for a Phase 2 indefinite-lived out-licensed asset that was discontinued by our out-licensing partner.

(c)See Note 2C.

(d)See Notes 1D and 16D in our 2025 Form 10-K and Note 7A.

(e)The amounts for the second quarter and first six months of 2026 include, among other things, dividend income of $98 million and $180 million, respectively, from our previous investment in ViiV. The amounts for the second quarter and first six months of 2025 included, among other things, dividend income of $73 million and $111 million, respectively, from our previous investment in ViiV.

Schedule of Additional Information About Intangible Assets Impaired


Additional information about the intangible assets that were impaired during 2026 follows:
									Six Months Ended
	Fair Value(a)								June 28, 2026
(MILLIONS)	Amount		Level 1		Level 2		Level 3		Impairment


IPR&D(b)	$	5,600	$	—	$	—	$	5,600	$	3,800

Developed technology rights(b)	—		—		—		—		525
Total	$	5,600	$	—	$	—	$	5,600	$	4,325

(a)The fair value amount reflects the remaining fair value for the asset that has been impaired as of the date of impairment, as this asset is not measured at fair value on a recurring basis. See Note 1E in our 2025 Form 10-K.

(b)Reflects intangible assets written down to fair value in 2026. 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 factors on the product; and assumptions about the probability of technical and regulatory success (PTRS) of ongoing clinical trials, 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.