Other (Income)/Deductions—Net

9 Months Ended

Sep. 28, 2025

Other Income and Expenses [Abstract]


Components of Other (income)/deductions––net include:
	Three Months Ended				Nine Months Ended
(MILLIONS)	September 28, 2025		September 29, 2024		September 28, 2025		September 29, 2024
Interest income	$	(138)	$	(116)	$	(437)	$	(374)
Interest expense	652		783		1,960		2,352
Net interest expense(a)	514		668		1,523		1,977

Net (gains)/losses recognized during the period on equity securities(b)	(201)		(446)		94		(129)

Net periodic benefit costs/(credits) other than service costs	(73)		(102)		(333)		(311)
Certain legal matters, net(c)	191		45		755		422
Certain asset impairments(d)	260		—		577		349
Haleon equity method (income)/loss	—		(150)		—		(102)
Other, net(e)	(174)		227		(406)		(177)
Other (income)/deductions––net	$	517	$	243	$	2,210	$	2,030

(a)The decrease in net interest expense in the third quarter and first nine months of 2025 reflects (i) a decrease in interest expense primarily driven by a reduction in commercial paper outstanding and (ii) an increase in interest income due to a higher total average investment asset balance compared to 2024.

(b)The net losses in the first nine months of 2025 include, among other things, a net loss of $144 million related to our previous investment in Haleon, composed of unrealized losses of $1.0 billion, partially offset by $900 million in realized gains on the sales of our remaining investment in the first quarter of 2025.

(c)The third quarter of 2025 primarily includes certain product liability expenses. The first nine months of 2025 primarily include certain product liability and other legal expenses. The third quarter and first nine months of 2024 primarily included certain product liability expenses related to products discontinued and/or divested by Pfizer.

(d)The third quarter and first nine months of 2025 include 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 reflects unfavorable clinical trial results. The first nine months of 2025 also include an intangible asset impairment charge of $210 million associated with our Biopharma segment for KRAS G12D, a Phase 2 indefinite-lived out-licensed asset that was discontinued by our out-licensing partner. The first nine months of 2024 included a $240 million intangible asset impairment charge, associated with our Biopharma segment that represented IPR&D related to a Phase 3 study for the treatment of DMD, which reflected unfavorable clinical trial results.

(e)The first nine months of 2025 include, among other things, dividend income of $184 million from our investment in ViiV. The third quarter and first nine months of 2024 primarily included, among other things, a charge of $420 million related to the expected sale of one of our facilities resulting from the discontinuation of our DMD program. The first nine months of 2024 also included, among other things, dividend income of $183 million from our investment in ViiV and a $150 million realized gain on the partial sale of our previous investment in Haleon in the first quarter of 2024.


Additional information about the intangible assets that were impaired during 2025 follows:
									Nine Months Ended
	Fair Value(a)								September 28, 2025
(MILLIONS)	Amount		Level 1		Level 2		Level 3		Impairment


IPR&D(b), (c)	$	590	$	—	$	—	$	590	$	353
Indefinite-lived licensing agreement(b)	—		—		—		—		210
Developed technology rights(b)	—		—		—		—		14
Total	$	590	$	—	$	—	$	590	$	577

(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 Note 1E in our 2024 Form 10-K.

(b)Reflects intangible assets written down to fair value in 2025. 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; 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.

(c)See Note 9.