XML 21 R10.htm IDEA: XBRL DOCUMENT v3.25.3
Segment and other information
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
Segment and other information Segment and other information
We operate our business in one operating segment, which also represents one reportable segment: human therapeutics. Therefore, results of our operations are reported on a consolidated basis for purposes of segment reporting, consistent with internal management reporting.
The human therapeutics segment is engaged in the discovery, development, manufacturing and delivery of innovative medicines to fight some of the world’s toughest diseases. The Company’s Chief Executive Officer has been identified as the chief operating decision maker (CODM). The CODM manages and allocates resources on a consolidated basis. The determination of a single segment is consistent with the financial information regularly reviewed by the CODM for purposes of evaluating performance and allocating resources, which is reviewed on a consolidated basis.
As the Company’s CODM evaluates the financial performance of the Company’s human therapeutics segment on a consolidated basis, the measure of segment performance is net income, as reflected in the Condensed Consolidated Statements of Income. The CODM uses net income to allocate resources on a consolidated basis, which enables the CODM to both assess the overall level of resources available and optimize the distribution of resources across functions, therapeutic areas, regions and R&D programs in line with our long-term corporate-wide strategic goals. In addition, the CODM may also evaluate financial performance based on net income adjusted for certain items that are unusual and non-recurring. As the Company manages its assets on a consolidated basis, the measure of segment assets is total assets, as reflected in the Condensed Consolidated Balance Sheets. See Note 6, Investments, for further information regarding equity method investments, and Net cash used in investing activities in the Condensed Consolidated Statements of Cash Flows for further information regarding capital expenditures.
The following table provides segment revenues, significant segment expenses, other segment items and reported segment net income for the Company’s one reportable segment, as well as a reconciliation of segment net income to the Company’s total consolidated net income for the three and nine months ended September 30, 2025 and 2024 (in millions):
Three months ended
September 30,		Nine months ended
September 30,
2025202420252024
Revenues:
Product sales$9,137 $8,151 $25,781 $23,310 
Other revenues420 352 1,104 1,028 
Total revenues9,557 8,503 26,885 24,338 
Less:
Manufacturing cost of sales(1)(2)
2,508 2,852 7,520 8,491 
Profit share and royalties in cost of sales(1)
574 458 1,541 1,255 
Research and development(1)
1,900 1,450 5,130 4,240 
Sales and marketing(1)
1,097 1,117 3,300 3,532 
General and administrative(1)
623 508 1,798 1,686 
Other segment items(3)
(1,642)(1,661)(1,676)(696)
Equity in (income) loss of equity method investments(10)28 19 (11)
Interest income
(99)(126)(311)(394)
Interest expense, net685 776 2,102 2,408 
Provision for income taxes
705 271 1,084 364 
Segment net income3,216 2,830 6,378 3,463 
Reconciliation of profit or loss:
Adjustments and reconciling items— — — — 
Consolidated net income$3,216 $2,830 $6,378 $3,463 
____________
(1)    During the three months ended September 30, 2025 and 2024, amortization of our finite-lived intangible assets was $1.1 billion and $1.2 billion, respectively. During the nine months ended September 30, 2025 and 2024, amortization of our finite-lived intangible assets was $3.4 billion and $3.6 billion, respectively. Amortization of intangible assets is primarily included in Cost of sales in the Condensed Consolidated Statements of Income. In addition, during the three months ended September 30, 2025 and 2024, we recognized depreciation and right-of-use asset amortization of $232 million and $198 million, respectively. During the nine months ended September 30, 2025 and 2024, we recognized depreciation and right-of-use asset amortization of $661 million and $601 million, respectively.
(2)    During the three months ended September 30, 2025 and 2024, manufacturing cost of sales included amortization of step-up to fair value of inventory acquired in business combinations of $338 million and $661 million, respectively. During the nine months ended September 30, 2025 and 2024, manufacturing cost of sales included amortization of step-up to fair value of inventory acquired in business combinations of $1.0 billion and $2.0 billion, respectively.
(3)    Other segment items included in Segment net income primarily consisted of fair value adjustments on equity securities (see Note 6, Investments) and net impairment charges on intangible assets (see Note 8, Goodwill and other intangible assets).