
Components of Other (income)/deductions––net include:
	Three Months Ended				Nine Months Ended
(MILLIONS)	September 27, 2026		September 28, 2025		September 27, 2026		September 28, 2025
Interest income	$	(108)	$	(138)	$	(336)	$	(437)
Interest expense	662		652		1,998		1,960
Net interest expense	554		514		1,662		1,523
Net (gains)/losses on asset disposals	(132)		(2)		(150)		(91)
Net (gains)/losses recognized during the period on equity securities	75		(201)		121		94
Income from collaborations, out-licensing arrangements and sales of compound/product rights	(111)		(45)		(165)		(82)
Net periodic benefit costs/(credits) other than service costs	(103)		(73)		(258)		(333)
Certain legal matters, net(a)	13		191		1,047		755
Certain asset impairments(b)	—		260		4,325		577
Net gain from the sale of investment in ViiV(c)	—		—		(1,870)		—
Changes in fair value of contingent consideration liabilities(d)	159		15		709		57
Other, net(e)	(167)		(141)		(556)		(291)
Other (income)/deductions––net	$	288	$	517	$	4,866	$	2,210

(a)The amount for the first nine months of 2026 primarily includes certain product liability and other legal expenses. The amount for the third quarter of 2025 primarily included certain product liability expenses. The amount for the first nine months of 2025 primarily included certain product liability and other legal expenses.

(b)The amount for the first nine months of 2026 represents 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 amounts for the third quarter and first nine months of 2025 included an intangible asset impairment charge associated with our Biopharma segment of $260 million related to IPR&D associated with a Phase 3 study for inclacumab for the treatment of SCD, which reflected unfavorable clinical trial results. The amount for the first nine months of 2025 also 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.

(e)The amounts for the third quarter and first nine months of 2026 include, among other things, dividend income of $58 million and $239 million, respectively, from our previous investment in ViiV. The amounts for the third quarter and first nine months of 2025 included, among other things, dividend income of $72 million and $184 million, respectively, from our previous investment in ViiV.


Additional information about the intangible assets that were impaired during 2026 follows:
									Nine Months Ended
	Fair Value(a)								September 27, 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

(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.