Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives (Tables)


The following summarizes costs and credits for acquisitions and cost-reduction/productivity initiatives:
	Three Months Ended				Nine Months Ended
(MILLIONS)	September 27, 2026		September 28, 2025		September 27, 2026		September 28, 2025
Restructuring charges/(credits):
Employee terminations	$	702	$	124	$	1,071	$	360
Asset impairments	30		111		112		328
Exit costs	21		2		38		96
Restructuring charges/(credits)(a)	753		237		1,221		784
Transaction costs	2		—		2		—
Integration costs and other(b)	35		49		124		162
Restructuring charges and certain acquisition-related costs	791		286		1,347		945
Net periodic benefit costs/(credits) recorded in Other (income)/deductions––net	(1)		(6)		(3)		(74)
Inventory write-offs––recorded in Cost of sales	6		33		52		33
Additional depreciation––asset restructuring recorded in our condensed consolidated statements of operations as follows(c):
Cost of sales	14		3		27		10

Research and development expenses	—		1		—		1
Total additional depreciation––asset restructuring	14		4		28		11
Implementation costs recorded in our condensed consolidated statements of operations as follows(d):
Cost of sales	21		26		61		72
Selling, informational and administrative expenses	50		26		142		46
Research and development expenses	60		53		162		116

Total implementation costs	131		105		364		234
Total costs associated with acquisitions and cost-reduction/productivity initiatives	$	940	$	423	$	1,788	$	1,150

(a)Primarily represents cost-reduction initiatives. Amounts associated with our Biopharma segment: (i) charges of $461 million for the three months ended September 27, 2026 (including charges of $385 million for our Realigning our Cost Base Program and charges of $65 million for our Manufacturing Optimization Program), (ii) charges of $882 million for the nine months ended September 27, 2026 (including charges of $849 million for our Realigning our Cost Base Program and charges of $14 million for our Manufacturing Optimization Program), (iii) charges of $240 million for the three months ended September 28, 2025 (including charges of $117 million for our Manufacturing Optimization Program and charges of $107 million for our Realigning our Cost Base Program) and (iv) charges of $451 million for the nine months ended September 28, 2025 (including charges of $669 million for our Realigning our Cost Base Program and credits of $295 million for our Manufacturing Optimization Program). For the nine months ended September 28, 2025, Employee terminations included revisions of estimates of previously recorded accruals for severance benefits, driven in large part by higher-than-expected voluntary attrition.

(b)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.

(c)Represents the impact of changes in the estimated useful lives of assets involved in restructuring actions.

(d)Represents 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 Termination Costs		Asset Impairment Charges		Exit Costs		Accrual
Balance, December 31, 2025(a)	$	1,783	$	—	$	127	$	1,910
Provision	1,071		112		38		1,221
Utilization and other(b)	(758)		(112)		(63)		(934)
Balance, September 27, 2026(c)	$	2,096	$	—	$	101	$	2,197

(a)Included in Other current liabilities ($1.4 billion) and Other noncurrent liabilities ($466 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 ($1.2 billion) and Other noncurrent liabilities ($972 million).