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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 EndedSix Months Ended
(MILLIONS)June 30,
2024		July 2,
2023		June 30,
2024		July 2,
2023
Interest income$(130)$(316)$(259)$(493)
Interest expense778 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)AmountLevel 1Level 2Level 3Impairment
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.