PFIZER INC, 10-K filed on 2/23/2023
Annual Report
v3.22.4
Cover Page - USD ($)
$ in Billions
 12 Months Ended
Dec. 31, 2022
Feb. 21, 2023
Jul. 03, 2022
Entity Information [Line Items]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2022    
Current Fiscal Year End Date --12-31    
Document Transition Report false    
Entity File Number 1-3619    
Entity Registrant Name PFIZER INC    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 13-5315170    
Entity Address, Address Line One 66 Hudson Boulevard East    
Entity Address, City or Town New York    
Entity Address, State or Province NY    
Entity Address, Postal Zip Code 10001-2192    
City Area Code 212    
Local Phone Number 733-2323    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Entity Shell Company false    
Entity Public Float     $ 294
Entity Common Stock, Shares Outstanding   5,619,074,621  
Entity Central Index Key 0000078003    
Document Fiscal Year Focus 2022    
Document Fiscal Period Focus FY    
Amendment Flag false    
Documents Incorporated by Reference
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the Proxy Statement for the 2023 Annual Meeting of ShareholdersPart III
    
Common Stock [Member]      
Entity Information [Line Items]      
Title of 12(b) Security Common Stock, $.05 par value    
Trading Symbol PFE    
Security Exchange Name NYSE    
Notes Due 2027, 1.000% [Member]      
Entity Information [Line Items]      
Title of 12(b) Security 1.000% Notes due 2027    
Trading Symbol PFE27    
Security Exchange Name NYSE    
v3.22.4
Audit Information
 12 Months Ended
Dec. 31, 2022
Audit Information [Abstract]  
Auditor name KPMG LLP
Auditor location New York, NY
Auditor firm ID 185
v3.22.4
Consolidated Statements of Income - USD ($)
shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Income Statement [Abstract]      
Revenues $ 100,330 $ 81,288 $ 41,651
Costs and expenses:      
Cost of sales [1] 34,344 30,821 8,484
Selling, informational and administrative expenses [1] 13,677 12,703 11,597
Research and development expenses [1] 11,428 10,360 8,709
Acquired in-process research and development expenses [2] 953 3,469 684
Amortization of intangible assets 3,609 3,700 3,348
Restructuring charges and certain acquisition-related costs 1,375 802 579
Other (income)/deductions––net 217 (4,878) 1,213
Income from continuing operations before provision/(benefit) for taxes on income [3],[4],[5] 34,729 24,311 7,036
Provision/(benefit) for taxes on income 3,328 1,852 370
Income from continuing operations 31,401 22,459 6,666
Discontinued operations––net of tax 6 (434) 2,529
Net income before allocation to noncontrolling interests 31,407 22,025 9,195
Less: Net income attributable to noncontrolling interests 35 45 36
Net income attributable to Pfizer Inc. common shareholders $ 31,372 $ 21,979 $ 9,159
Earnings per common share––basic:      
Income from continuing operations attributable to Pfizer Inc. common shareholders (in dollars per share) $ 5.59 $ 4.00 $ 1.19
Discontinued operations––net of tax (in dollars per share) 0 (0.08) 0.46
Net income attributable to Pfizer Inc. common shareholders (in dollars per share) 5.59 3.92 1.65
Earnings per common share––diluted:      
Income from continuing operations attributable to Pfizer Inc. common shareholders (in dollars per share) 5.47 3.93 1.18
Discontinued operations––net of tax (in dollars per share) 0 (0.08) 0.45
Net income attributable to Pfizer Inc. common shareholders (in dollars per share) $ 5.47 $ 3.85 $ 1.63
Weighted-average shares––basic 5,608 5,601 5,555
Weighted-average shares––diluted 5,733 5,708 5,632
[1] Exclusive of amortization of intangible assets.
[2] See Note 1L.
[3] Income from continuing operations before provision/(benefit) for taxes on income. Biopharma’s earnings include dividend income from our investment in ViiV of $314 million in 2022, $166 million in 2021 and $278 million in 2020. In connection with the organizational changes effective in the third quarter of 2022, certain functions transferred between Biopharma and corporate enabling functions and certain activities were realigned within the GPD organization. We have reclassified $231 million of costs in 2021 and $222 million of costs in 2020 from corporate enabling functions, which are included in Other business activities, to Biopharma to conform to the current period presentation. Amortization of intangible assets is not allocated to our operating segments for all periods presented.
[4] 2021 v. 2020––The domestic income in 2021 versus domestic loss in 2020 was mainly related to Comirnaty income, lower asset impairment charges, net periodic benefit credits in 2021 versus net periodic benefit costs in 2020 and higher net gains from equity securities, partially offset by higher R&D expenses. The increase in the international income was primarily related to Comirnaty income, net periodic benefit credits in 2021 versus net periodic benefit costs in 2020 and lower asset impairment charges.
[5] 2022 v. 2021––The decrease in domestic income is primarily related to net losses on equity securities in 2022 versus net gains on equity securities in 2021, lower net periodic benefit credits and higher restructuring charges and certain acquisition-related costs, partially offset by Paxlovid income and lower acquired IPR&D expenses. The increase in the international income is primarily related to Paxlovid and Comirnaty income partially offset by lower net periodic benefit credits.
v3.22.4
Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Statement of Comprehensive Income [Abstract]      
Net income before allocation to noncontrolling interests $ 31,407 $ 22,025 $ 9,195
Foreign currency translation adjustments, net (2,328) (682) 772
Reclassification adjustments 0 0 (17)
Other comprehensive income (loss), foreign currency transaction and translation adjustment, before tax, total (2,328) (682) 755
Unrealized holding gains/(losses) on derivative financial instruments, net 1,444 526 (582)
Reclassification adjustments for (gains)/losses included in net income [1] (2,062) 134 21
Other comprehensive income (loss), derivatives qualifying as hedges, before tax, total (618) 660 (561)
Unrealized holding gains/(losses) on available-for-sale securities, net (1,306) (355) 361
Reclassification adjustments for (gains)/losses included in net income [2] 1,809 (30) (188)
Other comprehensive income (loss), available-for-sale securities adjustment, before tax, total 502 (384) 173
Benefit plans: prior service (costs)/credits and other, net (24) 116 52
Reclassification adjustments related to amortization of prior service costs and other, net (129) (154) (176)
Reclassification adjustments related to curtailments of prior service costs and other, net (12) (75) 0
Other comprehensive income (loss), benefit plans, prior service (costs)/credits, before tax, total (166) (113) (124)
Other comprehensive income/(loss), before tax (2,609) (519) 243
Tax provision/(benefit) on other comprehensive income/(loss) (187) 71 (227)
Other comprehensive income/(loss), net of tax (2,422) (589) 471
Comprehensive income/(loss) before allocation to noncontrolling interests 28,985 21,435 9,666
Less: Comprehensive income/(loss) attributable to noncontrolling interests 20 43 27
Comprehensive income/(loss) attributable to Pfizer Inc. $ 28,965 $ 21,393 $ 9,639
[1] Reclassified into Other (income)/deductions—net and Cost of sales. See Note 7E.
[2] Reclassified into Other (income)/deductions—net.
v3.22.4
Consolidated Balance Sheets - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Assets    
Cash and cash equivalents $ 416 $ 1,944
Short-term investments 22,316 29,125
Trade accounts receivable, less allowance for doubtful accounts: 2022—$449; 2021—$492 10,952 11,479
Inventories [1] 8,981 9,059
Current tax assets 3,577 4,266
Other current assets 5,017 3,820
Total current assets 51,259 59,693
Equity-method investments 11,033 16,472
Long-term investments 4,036 5,054
Property, plant and equipment 16,274 14,882
Identifiable intangible assets [2] 43,370 25,146
Goodwill [3] 51,375 49,208
Noncurrent deferred tax assets and other noncurrent tax assets 6,693 3,341
Other noncurrent assets 13,163 7,679
Total assets 197,205 181,476
Liabilities and Equity    
Short-term borrowings, including current portion of long-term debt: 2022—$2,560; 2021—$1,636 2,945 2,241
Trade accounts payable 6,809 5,578
Dividends payable 2,303 2,249
Income taxes payable 1,587 1,266
Accrued compensation and related items 3,407 3,332
Deferred revenues 2,520 3,067
Other current liabilities 22,568 24,939
Total current liabilities 42,138 42,671
Long-term debt 32,884 36,195
Pension and postretirement benefit obligations 2,250 3,724
Noncurrent deferred tax liabilities 1,023 349
Other taxes payable 9,812 11,331
Other noncurrent liabilities 13,180 9,743
Total liabilities 101,288 104,013
Commitments and Contingencies
Preferred stock, no par value, at stated value; 27 shares authorized; no shares issued or outstanding at December 31, 2022 and December 31, 2021 0 0
Common stock, $0.05 par value; 12,000 shares authorized; issued: 2022—9,519; 2021—9,471 476 473
Additional paid-in capital 91,802 90,591
Treasury stock, shares at cost: 2022—3,903; 2021—3,851 (113,969) (111,361)
Retained earnings 125,656 103,394
Accumulated other comprehensive loss (8,304) (5,897)
Total Pfizer Inc. shareholders’ equity 95,661 77,201
Equity attributable to noncontrolling interests 256 262
Total equity 95,916 77,462
Total liabilities and equity $ 197,205 $ 181,476
[1] The decrease from December 31, 2021 reflects lower levels of Comirnaty, partially offset by new products acquired through recent acquisitions and higher Paxlovid inventory levels.
[2] The increase is primarily due to acquisitions (see Note 2A), partially offset by amortization expense.
[3] As a result of the organizational changes to the commercial structure within the Biopharma operating segment effective in the third quarter of 2022 (see Note 1A), our goodwill was required to be reallocated amongst impacted reporting units. The allocation of goodwill is a complex process that requires, among other things, that we determine the fair value of each reporting unit under our old and new organizational structure and the portions being transferred. We completed this re-allocation during the fourth quarter 2022 and concluded that none of our goodwill was impaired. Our goodwill balance continues to be assigned within the Biopharma reportable segment.
v3.22.4
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Statement of Financial Position [Abstract]    
Allowance for doubtful accounts $ 449 $ 492
Current portion of long-term debt $ 2,560 $ 1,636
Preferred stock, shares authorized 27,000,000 27,000,000
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
Common stock, par value (in dollars per share) $ 0.05 $ 0.05
Common stock, shares authorized 12,000,000,000 12,000,000,000
Common stock, shares, issued 9,519,000,000 9,471,000,000
Treasury stock (in shares) 3,903,000,000 3,851,000,000
v3.22.4
Consolidated Statements of Equity - USD ($)
$ in Millions
Total
Shareholders’ Equity [Member]
Preferred Stock [Member]
Common Stock [Member]
Add’l Paid-In Capital [Member]
Treasury Stock [Member]
Retained Earnings [Member]
Accum. Other Comp. Loss [Member]
Non-controlling Interests [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Beginning balance, treasury (in shares)           (3,835,000,000)      
Beginning balance, preferred (in shares) at Dec. 31, 2019     431            
Beginning balance, common (in shares) at Dec. 31, 2019       9,369,000,000          
Beginning balance at Dec. 31, 2019 $ 63,447 $ 63,143 $ 17 $ 468 $ 87,428 $ (110,801) $ 91,397 $ (5,367) $ 303
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Net income 9,195 9,159         9,159   36
Other comprehensive income/(loss), net of tax 471 480           480 [1] (9)
Cash dividends declared:                  
Common stock (8,571) (8,571)         (8,571)    
Preferred stock 0                
Noncontrolling interests (91)               (91)
Share-based payment transactions (in shares)       37,000,000   (6,000,000)      
Share-based payment transactions 1,044 1,044   $ 2 1,261 $ (218)      
Preferred stock conversions and redemptions (in shares) [2]     (431)     1,000,000      
Preferred stock conversions and redemptions [2] (1) (1) $ (17)   (15) $ 31      
Distribution of Upjohn business [3] (2,018) (2,015)         (1,592) (423) [4] (3)
Other (1)               (1)
Ending balance, preferred (in shares) at Dec. 31, 2020     0            
Ending balance, common (in shares) at Dec. 31, 2020       9,407,000,000          
Ending balance, treasury (in shares) at Dec. 31, 2020           (3,840,000,000)      
Ending balance at Dec. 31, 2020 $ 63,473 63,238 $ 0 $ 470 88,674 $ (110,988) 90,392 (5,310) 235
Cash dividends declared:                  
Cash dividends declared per share (in dollars per share) $ 1.53                
Beginning balance, treasury (in shares)           (3,840,000,000)      
Net income $ 22,025 21,979         21,979   45
Other comprehensive income/(loss), net of tax (589) (587)           (587) [1] (3)
Common stock (8,816) (8,816)         (8,816)    
Noncontrolling interests (8)               (8)
Share-based payment transactions (in shares)       64,000,000   (11,000,000)      
Share-based payment transactions 1,470 1,470   $ 3 1,917 $ (373) (77)    
Other $ (92) (85)         (85)   (7)
Ending balance, preferred (in shares) at Dec. 31, 2021 0   0            
Ending balance, common (in shares) at Dec. 31, 2021 9,471,000,000     9,471,000,000          
Ending balance, treasury (in shares) at Dec. 31, 2021 (3,851,000,000)         (3,851,000,000)      
Ending balance at Dec. 31, 2021 $ 77,462 77,201 $ 0 $ 473 90,591 $ (111,361) 103,394 (5,897) 262
Cash dividends declared:                  
Cash dividends declared per share (in dollars per share) $ 1.57                
Beginning balance, treasury (in shares) (3,851,000,000)         (3,851,000,000)      
Net income $ 31,407 31,372         31,372   35
Other comprehensive income/(loss), net of tax (2,422) (2,407)           (2,407) [1] (15)
Common stock (9,037) (9,037)         (9,037)    
Noncontrolling interests (13)               (13)
Share-based payment transactions (in shares)       48,000,000   (13,000,000)      
Share-based payment transactions $ 513 513   $ 2 1,192 $ (608) (73)    
Purchases of common stock (in shares) (39,000,000)         (39,000,000)      
Purchases of common stock $ (2,000) (2,000)       $ (2,000)      
Other $ 6 19     19       (13)
Ending balance, preferred (in shares) at Dec. 31, 2022 0   0            
Ending balance, common (in shares) at Dec. 31, 2022 9,519,000,000     9,519,000,000          
Ending balance, treasury (in shares) at Dec. 31, 2022 (3,903,000,000)         (3,903,000,000)      
Ending balance at Dec. 31, 2022 $ 95,916 $ 95,661 $ 0 $ 476 $ 91,802 $ (113,969) $ 125,656 $ (8,304) $ 256
Cash dividends declared:                  
Cash dividends declared per share (in dollars per share) $ 1.61                
Beginning balance, treasury (in shares) (3,903,000,000)         (3,903,000,000)      
[1] Amounts do not include foreign currency translation adjustments attributable to noncontrolling interests. Foreign currency translation adjustments include net losses in 2022 and 2021 and net gains in 2020 related to our equity-method investment in Haleon/the Consumer Healthcare JV (see Note 2C), and the impact of our net investment hedging program.
[2] See Note 12.
[3] See Note 2B.
[4] For more information, see Note 2B.
v3.22.4
Consolidated Statements of Equity (Parenthetical) - $ / shares
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Statement of Stockholders' Equity [Abstract]      
Cash dividends declared per share (in dollars per share) $ 1.61 $ 1.57 $ 1.53
v3.22.4
Consolidated Statements of Cash Flows - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Operating Activities      
Net income before allocation to noncontrolling interests $ 31,407 $ 22,025 $ 9,195
Discontinued operations––net of tax 6 (434) 2,529
Net income from continuing operations before allocation to noncontrolling interests 31,401 22,459 6,666
Adjustments to reconcile net income before allocation to noncontrolling interests to net cash provided by operating activities:      
Depreciation and amortization 5,064 5,191 4,681
Asset write-offs and impairments 550 276 2,049
Deferred taxes from continuing operations (3,764) (4,293) (1,575)
Share-based compensation expense 872 1,182 755
Benefit plan contributions in excess of expense/income (1,158) (3,123) (1,242)
Other adjustments, net 758 (1,573) (485)
Other changes in assets and liabilities, net of acquisitions and divestitures:      
Trade accounts receivable 261 (3,811) (1,275)
Inventories 592 (1,125) (778)
Other assets [1] (4,506) (1,057) (137)
Trade accounts payable 1,191 1,242 355
Other liabilities (1,449) 18,721 2,768
Other tax accounts, net (545) (1,166) (1,240)
Net cash provided by operating activities from continuing operations 29,267 32,922 10,540
Net cash provided by/(used in) operating activities from discontinued operations 0 (343) 3,863
Net cash provided by operating activities 29,267 32,580 14,403
Investing Activities      
Purchases of property, plant and equipment (3,236) (2,711) (2,226)
Purchases of short-term investments (36,384) (38,457) (13,805)
Proceeds from redemptions/sales of short-term investments 44,821 27,447 11,087
Net (purchases of)/proceeds from redemptions/sales of short-term investments with original maturities of three months or less (483) (8,088) 920
Purchases of long-term investments (1,913) (1,068) (597)
Proceeds from redemptions/sales of long-term investments 641 649 723
Acquisitions of businesses, net of cash acquired (22,997) 0 0
Dividend received from the Consumer Healthcare JV [2] 3,960 0 0
Other investing activities, net (192) (305) (265)
Net cash provided by/(used in) investing activities from continuing operations (15,783) (22,534) (4,162)
Net cash provided by/(used in) investing activities from discontinued operations 0 (12) (109)
Net cash provided by/(used in) investing activities (15,783) (22,546) (4,271)
Financing Activities      
Proceeds from short-term borrowings 3,891 0 12,352
Payments on short-term borrowings (3,887) 0 (22,197)
Net (payments on)/proceeds from short-term borrowings with original maturities of three months or less (222) (96) (4,129)
Proceeds from issuances of long-term debt 0 997 5,222
Payments on long-term debt (3,298) (2,004) (4,003)
Purchases of common stock (2,000) 0 0
Cash dividends paid (8,983) (8,729) (8,440)
Other financing activities, net (335) 16 (444)
Net cash provided by/(used in) financing activities from continuing operations (14,834) (9,816) (21,640)
Net cash provided by/(used in) financing activities from discontinued operations 0 0 11,991
Net cash provided by/(used in) financing activities (14,834) (9,816) (9,649)
Effect of exchange-rate changes on cash and cash equivalents and restricted cash and cash equivalents (165) (59) (8)
Net increase/(decrease) in cash and cash equivalents and restricted cash and cash equivalents (1,515) 159 475
Cash and cash equivalents and restricted cash and cash equivalents, at beginning of period 1,983 1,825 1,350
Cash and cash equivalents and restricted cash and cash equivalents, at end of period 468 1,983 1,825
Cash paid/(received) during the period for:      
Income taxes 7,867 7,427 3,153
Interest paid 1,442 1,467 1,641
Interest rate hedges 54 (2) (20)
Non-cash transaction:      
Right-of-use assets obtained in exchange for lease liabilities $ 752 $ 1,943 $ 410
[1] See Note 8A.
[2] See Note 2C.
v3.22.4
Basis of Presentation and Significant Accounting Policies
 12 Months Ended
Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation and Significant Accounting Policies Basis of Presentation and Significant Accounting Policies
A. Basis of Presentation
The consolidated financial statements include the accounts of our parent company and all subsidiaries and are prepared in accordance with U.S. GAAP. The decision of whether or not to consolidate an entity for financial reporting purposes requires consideration of majority voting interests, as well as effective economic or other control over the entity. Typically, we do not seek control by means other than voting interests. For subsidiaries operating outside the U.S., the financial information is included as of and for the year ended November 30 for each year presented. Pfizer's fiscal year-end for U.S. subsidiaries is as of and for the year ended December 31 for each year presented. Substantially all unremitted earnings of international subsidiaries are free of legal and contractual restrictions. All significant transactions among our subsidiaries have been eliminated.
Beginning in the fourth quarter of 2021, we reorganized our commercial operations and began to manage our commercial operations through a global structure consisting of two operating segments, each led by a single manager: Biopharma, our innovative science-based biopharmaceutical business, and PC1, our global contract development and manufacturing organization and a leading supplier of specialty active pharmaceutical ingredients. Beginning in the third quarter of 2022, we made several additional organizational changes to further transform our operations to better leverage our expertise in certain areas and in anticipation of potential future new product or indication launches. These changes include establishing a new commercial structure within Biopharma, optimizing our end-to-end R&D operations and further prioritizing our internal R&D portfolio, as well as realigning certain enabling and platform functions across the organization to ensure alignment with this new operating structure. Biopharma is the only reportable segment. See Note 17.
On December 31, 2021, we completed the sale of our Meridian subsidiary, the manufacturer of EpiPen and other auto-injector products. Prior to its sale, Meridian was managed within the former Hospital product portfolio. Beginning in the fourth quarter of 2021, the financial results of Meridian were reflected as discontinued operations for all periods presented. On December 21, 2020, Pfizer and Viatris completed the termination of a pre-existing strategic collaboration between Pfizer and Mylan for generic drugs in Japan (the Mylan-Japan collaboration) pursuant to an agreement dated November 13, 2020, and we transferred related inventories and operations that were part of the Mylan-Japan collaboration to Viatris. On November 16, 2020, we completed the spin-off and the combination of our Upjohn Business with Mylan to form Viatris. Beginning in the fourth quarter of 2020, the financial results of the Upjohn Business and the Mylan-Japan collaboration were reflected as discontinued operations for all periods presented. Upon completion of the spin-off of the Upjohn Business on November 16, 2020, the Upjohn assets and liabilities were derecognized from our consolidated balance sheet and are reflected in Retained Earnings–Distribution of Upjohn Business in the consolidated statement of equity. Prior to the spin-off of the Upjohn Business in November 2020, the Upjohn Business, the Mylan-Japan collaboration and Meridian were managed as part of our former Upjohn operating segment. With the separation of the Upjohn Business, the Mylan-Japan collaboration and Meridian, as well as the formation of the Consumer Healthcare JV in 2019, Pfizer transformed into a more focused, global leader in science-based innovative medicines and vaccines. In addition, other acquisitions and business development activities completed in 2022, 2021 and 2020 impacted financial results in the periods presented. See Note 2.
We have made certain reclassification adjustments to conform prior-period amounts to the current presentation, mainly for acquired IPR&D expenses (see Note 1L). Certain amounts in the consolidated financial statements and associated notes may not add due to rounding. All percentages have been calculated using unrounded amounts.
B. New Accounting Standard Adopted in 2022
On January 1, 2022, we early adopted a new accounting standard for contract assets and contract liabilities acquired in a business combination. Under the new standard, acquired contract assets and contract liabilities are required to be recognized and measured by the acquirer on the acquisition date in accordance with Accounting Standards Codification 606. This new guidance generally results in the acquirer recognizing contract assets and contract liabilities at the same amounts that were recorded by the acquiree. Previously, these amounts were recognized by the acquirer at fair value as of the acquisition date. We adopted this new standard on a prospective basis and there was no impact to our consolidated financial statements.
C. Estimates and Assumptions
In preparing these financial statements, we use certain estimates and assumptions that affect reported amounts and disclosures. These estimates and assumptions can impact all elements of our financial statements. For example, in the consolidated statements of income, estimates are used when accounting for deductions from revenues, determining the cost of inventory that is sold, allocating cost in the form of depreciation and amortization, and estimating restructuring charges and the impact of contingencies, as well as determining provisions for taxes on income. On the consolidated balance sheets, estimates are used in determining the valuation and recoverability of assets, and in determining the reported amounts of liabilities, all of which also impact the consolidated statements of income. Certain estimates of fair value and amounts recorded in connection with acquisitions, revenue deductions, impairment reviews, restructuring-associated charges, investments and financial instruments, valuation allowances, pension and postretirement benefit plans, contingencies, share-based compensation, and other calculations can result from a complex series of judgments about future events and uncertainties and can rely heavily on estimates and assumptions.
Our estimates are often based on complex judgments and assumptions that we believe to be reasonable, but that can be inherently uncertain and unpredictable. If our estimates and assumptions are not representative of actual outcomes, our results could be materially impacted. As future events and their effects cannot be determined with precision, our estimates and assumptions may prove to be incomplete or inaccurate, or unanticipated events and circumstances may occur that might cause us to change those estimates and assumptions. We are subject to risks and uncertainties that may cause actual results to differ from estimated amounts, such as changes in the healthcare environment, competition, litigation, legislation and regulations. We regularly evaluate our estimates and assumptions using historical experience and expectations about the future. We adjust our estimates and assumptions when facts and circumstances indicate the need for change.
D. Acquisitions
Our consolidated financial statements include the operations of acquired businesses after the completion of the acquisitions. We account for acquired businesses using the acquisition method of accounting, which requires, among other things, that most assets acquired and liabilities assumed be recognized at their estimated fair values as of the acquisition date and that the fair value of acquired IPR&D be recorded on the balance sheet. Transaction costs are expensed as incurred. Any excess of the consideration transferred over the assigned values of the net assets acquired is recorded as goodwill. When we acquire net assets that do not constitute a business, as defined in U.S. GAAP, no goodwill is recognized and acquired IPR&D is expensed in Acquired in-process research and development expenses.
Contingent consideration in a business combination is included as part of the acquisition cost and is recognized at fair value as of the acquisition date. Fair value is generally estimated by using a probability-weighted discounted cash flow approach. See Note 16D. Any liability resulting from contingent consideration is remeasured to fair value at each reporting date until the contingency is resolved. These changes in fair value are recognized in earnings in Other (income)/deductions––net.
E. Fair Value
We measure certain assets and liabilities at fair value, either upon initial recognition or for subsequent accounting or reporting. We estimate fair value using an exit price approach, which requires, among other things, that we determine the price that would be received to sell an asset or paid to transfer a liability in an orderly market. The determination of an exit price is considered from the perspective of market participants, considering the highest and best use of non-financial assets and, for liabilities, assuming that the risk of non-performance will be the same before and after the transfer.
When estimating fair value, depending on the nature and complexity of the asset or liability, we may use one or all of the following techniques:
•Income approach, which is based on the present value of a future stream of net cash flows.
•Market approach, which is based on market prices and other information from market transactions involving identical or comparable assets or liabilities.
•Cost approach, which is based on the cost to acquire or construct comparable assets, less an allowance for functional and/or economic obsolescence.
Our fair value methodologies depend on the following types of inputs:
•Quoted prices for identical assets or liabilities in active markets (Level 1 inputs).
•Quoted prices for similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are directly or indirectly observable, or inputs that are derived principally from, or corroborated by, observable market data by correlation or other means (Level 2 inputs).
•Unobservable inputs that reflect estimates and assumptions (Level 3 inputs).
The following inputs and valuation techniques are used to estimate the fair value of our financial assets and liabilities:
•Available-for-sale debt securities—third-party matrix-pricing model that uses significant inputs derived from or corroborated by observable market data and credit-adjusted yield curves.
•Equity securities with readily determinable fair values—quoted market prices and observable NAV prices.
•Derivative assets and liabilities—third-party matrix-pricing model that uses inputs derived from or corroborated by observable market data. Where applicable, these models use market-based observable inputs, including interest rate yield curves to discount future cash flow amounts, and forward and spot prices for currencies. The credit risk impact to our derivative financial instruments was not significant.
•Money market funds—observable NAV prices.
We periodically review the methodologies, inputs and outputs of third-party pricing services for reasonableness. Our procedures can include, for example, referencing other third-party pricing models, monitoring key observable inputs (like benchmark interest rates) and selectively performing test-comparisons of values with actual sales of financial instruments.
F. Foreign Currency Translation
For most of our international operations, local currencies have been determined to be the functional currencies. We translate functional currency assets and liabilities to their U.S. dollar equivalents at exchange rates in effect as of the balance sheet date and income and expense amounts at average exchange rates for the period. The U.S. dollar effects that arise from changing translation rates are recorded in Other comprehensive income/(loss). The effects of converting non-functional currency monetary assets and liabilities into the functional currency are recorded in Other (income)/deductions––net. For operations in highly inflationary economies, we translate monetary items at rates in effect as of the balance sheet date, with translation adjustments recorded in Other (income)/deductions––net, and we translate non-monetary items at historical rates.
G. Revenues and Trade Accounts Receivable
Revenue Recognition––We record revenues from product sales when there is a transfer of control of the product from us to the customer. We typically determine transfer of control based on when the product is shipped or delivered and title passes to the customer. For certain contracts, the finished product may temporarily be stored at our or our third-party subcontractors’ locations under a bill-and-hold arrangement. Revenue is recognized on bill-and-hold arrangements at the point in time when the customer obtains control of the product and all of the following criteria have been met: the arrangement is substantive; the product is identified separately as belonging to the customer; the product is ready for physical transfer to the customer; and we do not have the ability to use the product or direct it to another customer. In determining when the customer obtains control of the product, we consider certain indicators, including whether we have a present right to payment from
the customer, whether title and/or significant risks and rewards of ownership have transferred to the customer and whether customer acceptance has been received.
Our Sales Contracts––Sales on credit are typically under short-term contracts. Collections are based on market payment cycles common in various markets, with shorter cycles in the U.S. Sales are adjusted for sales allowances, chargebacks, rebates and sales returns and cash discounts. Sales returns occur due to LOE, product recalls or a changing competitive environment.
Deductions from Revenues––Our gross product revenues are subject to a variety of deductions, which generally are estimated and recorded in the same period that the revenues are recognized. Such variable consideration represents chargebacks, rebates, sales allowances and sales returns. These deductions represent estimates of the related obligations and, as such, knowledge and judgment is required when estimating the impact of these revenue deductions on gross sales for a reporting period.
Provisions for pharmaceutical sales returns––Provisions are based on a calculation for each market that incorporates the following, as appropriate: local returns policies and practices; historical returns as a percentage of sales; an understanding of the reasons for past returns; estimated shelf life by product; an estimate of the amount of time between shipment and return or lag time; and any other factors that could impact the estimate of future returns, such as LOE, product recalls or a changing competitive environment. Generally, returned products are destroyed, and customers are refunded the sales price in the form of a credit.
We record sales incentives as a reduction of revenues at the time the related revenues are recorded or when the incentive is offered, whichever is later. We estimate the cost of our sales incentives based on our historical experience with similar incentives programs to predict customer behavior.
The following outlines our common sales arrangements:
•Customers––Our prescription biopharmaceutical products, with the exception of Paxlovid, are sold principally to wholesalers, but we also sell directly to retailers, hospitals, clinics, government agencies and pharmacies. In 2022, we principally sold Paxlovid to government agencies. In the U.S., we primarily sell our vaccines directly to the federal government, CDC, wholesalers, individual provider offices, retail pharmacies and integrated delivery systems. Outside the U.S., we primarily sell our vaccines to government and non-government institutions. Prescription pharmaceutical products that ultimately are used by patients are generally covered under governmental programs, managed care programs and insurance programs, including those managed through PBMs, and are subject to sales allowances and/or rebates payable directly to those programs. Those sales allowances and rebates are generally negotiated, but government programs may have legislated amounts by type of product (e.g., patented or unpatented).
Specifically:
•In the U.S., we sell our products principally to distributors and hospitals. We also have contracts with managed care programs or PBMs and legislatively mandated contracts with the federal and state governments under which we provide rebates based on medicines utilized by the lives they cover. We record provisions for Medicare, Medicaid, and performance-based contract pharmaceutical rebates based upon our experience ratio of rebates paid and actual prescriptions written during prior periods. We apply the experience ratio to the respective period’s sales to determine the rebate accrual and related expense. This experience ratio is evaluated regularly to ensure that the historical trends are as current as practicable. We estimate discounts on branded prescription drug sales to Medicare Part D participants in the Medicare “coverage gap,” also known as the “doughnut hole,” based on the historical experience of beneficiary prescriptions and consideration of the utilization that is expected to result from the discount in the coverage gap. We evaluate this estimate regularly to ensure that the historical trends and future expectations are as current as practicable. For performance-based contract rebates, we also consider current contract terms, such as changes in formulary status and rebate rates.
•Outside the U.S., the majority of our pharmaceutical sales allowances are contractual or legislatively mandated and our estimates are based on actual invoiced sales within each period, which reduces the risk of variations in the estimation process. In certain European countries, rebates are calculated on the government’s total unbudgeted pharmaceutical spending or on specific product sales thresholds and we apply an estimated allocation factor against our actual invoiced sales to project the expected level of reimbursement. We obtain third-party information that helps us to monitor the adequacy of these accruals.
•Provisions for pharmaceutical chargebacks (primarily reimbursements to U.S. wholesalers for honoring contracted prices and legislated discounts to third parties) closely approximate actual amounts incurred, as we settle these deductions generally within two to five weeks of incurring the liability.
We recorded direct product sales and/or Alliance revenues of more than $1 billion for each of ten products in 2022, for each of nine products in 2021 and for each of seven products in 2020. In the aggregate, these direct product sales and/or alliance product revenues represented 82% of our revenues in 2022, 75% of our revenues in 2021 and 54% of our revenues in 2020. See Note 17C for additional information. The loss or expiration of intellectual property rights can have a significant adverse effect on our revenues as our contracts with customers will generally be at lower selling prices and lower volumes due to added generic competition. We generally provide for higher sales returns during the period in which individual markets begin to near the loss or expiration of intellectual property rights.
Our accruals for Medicare, Medicaid and related state program and performance-based contract rebates, chargebacks, sales allowances and sales returns and cash discounts are as follows:
  As of December 31,
(MILLIONS)20222021
Reserve against Trade accounts receivable, less allowance for doubtful accounts
$1,200 $1,077 
Other current liabilities:
Accrued rebates4,479 3,811 
Other accruals430 528 
Other noncurrent liabilities
612 433 
Total accrued rebates and other sales-related accruals$6,722 $5,850 
Taxes collected from customers relating to product sales and remitted to governmental authorities are excluded from Revenues.
Trade Accounts Receivable—Trade accounts receivable are stated at their net realizable value. The allowance for credit losses reflects our best estimate of expected credit losses of the receivables portfolio determined on the basis of historical experience, current information, and forecasts of future economic conditions. In developing the estimate for expected credit losses, trade accounts receivables are segmented into pools of assets depending on market (U.S. versus international), delinquency status, and customer type (high risk versus low risk and government versus non-government), and fixed reserve percentages are established for each pool of trade accounts receivables.
In determining the reserve percentages for each pool of trade accounts receivables, we considered our historical experience with certain customers and customer types, regulatory and legal environments, country and political risk, and other relevant current and future forecasted macroeconomic factors. These credit risk indicators are monitored on a quarterly basis to determine whether there have been any changes in the economic environment that would indicate the established reserve percentages should be adjusted, and are considered on a regional basis to reflect more geographic-specific metrics. Additionally, write-offs and recoveries of customer receivables are tracked against collections on a quarterly basis to determine whether the reserve percentages remain appropriate. When management becomes aware of certain customer-specific factors that impact credit risk, specific allowances for these known troubled accounts are recorded. Trade accounts receivable are written off after all reasonable means to collect the full amount (including litigation, where appropriate) have been exhausted.
During 2022 and 2021, additions to the allowance for credit losses, write-offs and recoveries of customer receivables were not material to our consolidated financial statements.

H. Collaborative Arrangements

Payments to and from our collaboration partners are presented in our consolidated statements of income based on the nature of the arrangement (including its contractual terms), the nature of the payments and applicable accounting guidance. Under co-promotion agreements, we record the amounts received for our share of gross profits from our collaboration partners as Alliance revenues, a component of Revenues, when our collaboration partners are the principal in the transaction and we receive a share of their net sales or profits. Alliance revenues are recorded as we perform co-promotion activities for the collaboration and the collaboration partners sell the products to their customers. The related expenses for selling and marketing these products including reimbursements to or from our collaboration partners for these costs are included in Selling, informational and administrative expenses. In collaborative arrangements where we manufacture a product for our collaboration partners, we record revenues when we transfer control of the product to our collaboration partners. In collaboration arrangements where we are the principal in the transaction, we record amounts paid to collaboration partners for their share of net sales or profits earned, and all royalty payments to collaboration partners as Cost of sales. Royalty payments received from collaboration partners are included in Other (income)/deductions—net.
Reimbursements to or from our collaboration partners for development costs are typically recorded in Research and development expenses. Upfront payments and pre-approval milestone payments due from us to our collaboration partners in development stage collaborations are recorded as Acquired in-process research and development expenses. Milestone payments due from us to our collaboration partners after regulatory approval has been attained for a medicine are recorded in Identifiable intangible assets—Developed technology rights. Upfront and pre-approval milestone payments earned from our collaboration partners by us are recognized in Other (income)/deductions—net over the development period for the products, when our performance obligations include providing R&D services to our collaboration partners. Upfront, pre-approval and post-approval milestone payments earned by us may be recognized in Other (income)/deductions—net immediately when earned or over other periods depending upon the nature of our performance obligations in the applicable collaboration. Where the milestone event is regulatory approval for a medicine, we generally recognize milestone payments due to us in the transaction price when regulatory approval in the applicable jurisdiction has been attained. We may recognize milestone payments due to us in the transaction price earlier than the milestone event in certain circumstances when recognition of the income would not be probable of a significant reversal.
I. Cost of Sales and Inventories
Inventories are recorded at the lower of cost or net realizable value. The cost of finished goods, work in process and raw materials is determined using average actual cost. We regularly review our inventories for impairment and reserves are established when necessary. Inventories that are not expected to be sold within 12 months are classified as Other noncurrent assets. See Note 8A.
J. Selling, Informational and Administrative Expenses
Selling, informational and administrative costs are expensed as incurred. Among other things, these expenses include the internal and external costs of marketing, advertising, shipping and handling, IT and legal defense. Advertising expenses totaled approximately $2.8 billion in 2022, $2.0 billion in 2021 and $1.8 billion in 2020. Production costs are expensed as incurred and the costs of TV, radio, and other electronic media and publications are expensed when the related advertising occurs.
K. Research and Development Expenses
R&D costs are expensed as incurred. These expenses include the costs of our proprietary R&D efforts, as well as R&D activities performed in connection with certain licensing arrangements.
L. Acquired In-Process Research and Development Expenses
Before a compound receives regulatory approval, we record upfront and milestone payments we make to third parties under licensing and collaboration arrangements as expense. Upfront payments are recorded when incurred, and milestone payments are recorded when the specific milestone has been achieved. Once a compound receives regulatory approval, we record any milestone payments in Identifiable intangible assets, less accumulated amortization and, unless the asset is determined to have an indefinite life, we typically amortize the payments on a straight-line basis over the remaining agreement term or the expected product life cycle, whichever is shorter. In the first quarter of 2022, we began reporting acquired IPR&D expense as a separate line item in our consolidated statements of income. Acquired in-process research and development expenses includes costs incurred in connection with (a) all upfront and milestone payments on
collaboration and in-license agreements, including premiums on equity securities and (b) asset acquisitions of acquired IPR&D. These costs were previously recorded in Research and development expenses.
M. Amortization of Intangible Assets, Depreciation and Certain Long-Lived Assets
Long-lived assets include:
•Property, plant and equipment, less accumulated depreciation—These assets are recorded at cost, including any significant improvements after purchase, less accumulated depreciation. Property, plant and equipment assets, other than land and construction in progress, are depreciated on a straight-line basis over the estimated useful life of the individual assets. Depreciation begins when the asset is ready for its intended use. For tax purposes, accelerated depreciation methods are used as allowed by tax laws.
•Identifiable intangible assets, less accumulated amortization—These assets are recorded at fair value at acquisition. Intangible assets with finite lives are amortized on a straight-line basis over their estimated useful lives. Intangible assets with indefinite lives are not amortized until a useful life can be determined.
•Goodwill—Goodwill represents the excess of the consideration transferred for an acquired business over the assigned values of its net assets. Goodwill is not amortized.
Amortization of finite-lived acquired intangible assets is included in Amortization of intangible assets.
We review our long-lived assets for impairment indicators throughout the year. We perform impairment testing for indefinite-lived intangible assets and goodwill at least annually and for all other long-lived assets whenever impairment indicators are present. When necessary, we record impairments of long-lived assets for the amount by which the fair value is less than the carrying value of these assets.

Specifically:
•For finite-lived intangible assets, such as developed technology rights, and for other long-lived assets, such as property, plant and equipment, whenever impairment indicators are present, we calculate the undiscounted value of the projected cash flows for the asset, or asset group, and compare this estimated amount to the carrying amount. If the carrying amount is greater, we record an impairment loss for the excess of book value over fair value. In addition, in all cases of an impairment review, we reevaluate the remaining useful lives of the assets and modify them, as appropriate.
•For indefinite-lived intangible assets, such as brands and IPR&D assets, when necessary, we determine the fair value of the asset and record an impairment loss, if any, for the excess of book value over fair value. In addition, in all cases of an impairment review other than for IPR&D assets, we re-evaluate whether continuing to characterize the asset as indefinite-lived is appropriate.
•For goodwill, when necessary, we determine the fair value of each reporting unit and record an impairment loss, if any, for the excess of the book value of the reporting unit over the implied fair value.

N. Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives

We may incur restructuring charges in connection with acquisitions when we implement plans to restructure and integrate the acquired operations or in connection with our cost-reduction and productivity initiatives.
•In connection with acquisition activity, we typically incur costs associated with executing the transactions, integrating the acquired operations (which may include expenditures for consulting and the integration of systems and processes), and restructuring the combined company (which may include charges related to employees, assets and activities that will not continue in the combined company); and
•In connection with our cost-reduction/productivity initiatives, we typically incur costs and charges for site closings and other facility rationalization actions, workforce reductions and the expansion of shared services, including the development of global systems.
Included in Restructuring charges and certain acquisition-related costs are all restructuring charges, as well as certain other costs associated with acquiring and integrating an acquired business. If the restructuring action results in a change in the estimated useful life of an asset, that incremental impact is classified in Cost of sales, Selling, informational and administrative expenses and/or Research and development expenses, as appropriate. Employee termination costs are generally recorded when the actions are probable and estimable and include accrued severance benefits, pension and postretirement benefits, many of which may be paid out during periods after termination. Transaction costs, such as banking, legal, accounting and other similar costs incurred in connection with a business acquisition are expensed as incurred.
Our business and platform functions may be impacted by these actions, including sales and marketing, manufacturing and R&D, as well as our corporate enabling functions (such as digital, global real estate operations, legal, finance, human resources, worldwide public affairs, compliance and worldwide procurement).
O. Cash Equivalents and Statement of Cash Flows
Cash equivalents include items almost as liquid as cash, such as certificates of deposit and time deposits with maturity periods of three months or less when purchased. If items meeting this definition are part of a larger investment pool, we classify them as Short-term investments.
Cash flows for financial instruments designated as fair value or cash flow hedges may be included in operating, investing or financing activities, depending on the classification of the items being hedged. Cash flows for financial instruments designated as net investment hedges are classified according to the nature of the hedging instrument. Cash flows for financial instruments that do not qualify for hedge accounting treatment are classified according to their purpose and accounting nature.
P. Investments and Derivative Financial Instruments
The classification of an investment depends on the nature of the investment, our intent and ability to hold the investment, and the degree to which we may exercise influence. Our investments are primarily comprised of the following:
•Public equity securities with readily determinable fair values, which are carried at fair value, with changes in fair value reported in Other (income)/deductions—net.
•Available-for-sale debt securities, which are carried at fair value, with changes in fair value reported in Other comprehensive income/(loss) until realized.
•Held-to-maturity debt securities, which are carried at amortized cost.
•Private equity securities without readily determinable fair values and where we have no significant influence are measured at cost minus any impairment and plus or minus adjustments resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer.
•For equity investments in common stock or in-substance common stock where we have significant influence over the financial and operating policies of the investee, we use the equity-method of accounting. Under the equity-method, we record our share of the investee’s income and expenses in Other (income)/deductions—net. The excess of the cost of the investment over our share of the underlying equity in the net assets of the investee as of the acquisition date is allocated to the identifiable assets and liabilities of the investee, with any remaining excess amount allocated to goodwill. Such investments are initially recorded at cost, which is the fair value of consideration paid and typically does not include contingent consideration.
Realized gains or losses on sales of investments are determined by using the specific identification cost method.
We regularly evaluate all of our financial assets for impairment. For investments in debt and equity, if and when a decline in fair value is determined, an impairment charge is recorded and a new cost basis in the investment is established. For equity-method investments, an impairment charge is recorded only if and when a decline in fair value is determined to be other-than-temporary.
Derivative financial instruments are carried at fair value in certain balance sheet categories (see Note 7A), with changes in fair value reported in net income or, for certain qualifying hedging relationships, in Other comprehensive income/(loss) (see Note 7E).
Q. Tax Assets and Liabilities and Income Tax Contingencies

Tax Assets and Liabilities––Current tax assets primarily include (i) tax effects for intercompany transfers of inventory within our combined group, which are recognized in the consolidated statements of income when the inventory is sold to a third party and (ii) income tax receivables that are expected to be recovered either via refunds from taxing authorities or reductions to future tax obligations.

Deferred tax assets and liabilities are recognized for the expected future tax consequences of differences between the financial reporting and tax bases of assets and liabilities using enacted tax rates and laws. We provide a valuation allowance when we believe that our deferred tax assets are not recoverable based on an assessment of estimated future taxable income that incorporates ongoing, prudent and feasible tax-planning strategies, that would be implemented, if necessary, to realize the deferred tax assets. Amounts recorded for valuation allowances requires judgments about future income which can depend heavily on estimates and assumptions. All deferred tax assets and liabilities within the same tax jurisdiction are presented as a net amount in the noncurrent section of our consolidated balance sheet.
The TCJA subjects a U.S. shareholder to current tax on global intangible low-taxed income earned by certain foreign subsidiaries. The FASB Staff Q&A, Topic 740, No. 5, Accounting for Global Intangible Low-Taxed Income, states that we are permitted to make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as global intangible low-taxed income in future years or provide for the tax expense related to such income in the year the tax is incurred. We elected to recognize deferred taxes for temporary differences expected to reverse as global intangible low-taxed income in future years.

Other non-current tax assets primarily represent our estimate of the potential tax benefits in one tax jurisdiction that could result from the payment of income taxes in another tax jurisdiction. These potential benefits generally result from cooperative efforts among taxing authorities, as required by tax treaties to minimize double taxation, commonly referred to as the competent authority process. The recoverability of these assets, which we believe to be more likely than not, is dependent upon the actual payment of taxes in one tax jurisdiction and, in some cases, the successful petition for recovery in another tax jurisdiction.
Other taxes payable as of December 31, 2022 and 2021 include liabilities for uncertain tax positions and the noncurrent portion of the repatriation tax liability for which we elected payment over eight years through 2026. For additional information, see Note 5D for uncertain tax positions and Note 5A for the repatriation tax liability and other estimates and assumptions in connection with the TCJA.

Income Tax Contingencies––We account for income tax contingencies using a benefit recognition model. If we consider that a tax position is more likely than not to be sustained upon audit, based solely on the technical merits of the position, we recognize all or a portion of the benefit. We measure the benefit by determining the amount that is greater than 50% likely of being realized upon settlement, presuming that the tax position is examined by the taxing authority with full knowledge of all relevant information.

We regularly monitor our position and subsequently recognize the unrecognized tax benefit: (i) if there are changes in tax law, analogous case law or there is new information that sufficiently raise the likelihood of prevailing on the technical merits of the position to “more likely than not”; (ii) if the statute of limitations expires; or (iii) if there is a completion of an audit resulting in a favorable settlement of that tax year with the appropriate agency. Liabilities for uncertain tax positions are classified as current only when we expect to pay cash within the next 12 months. Interest and penalties, if any, are recorded in Provision/(benefit) for taxes on income and are classified on our consolidated balance sheet with the related tax liability.

Our assessments are based on estimates and assumptions that have been deemed reasonable by management, but our estimates of unrecognized tax benefits and potential tax benefits may not be representative of actual outcomes, and variation from such estimates could
materially affect our financial statements in the period of settlement or when the statutes of limitations expire, as we treat these events as discrete items in the period of resolution.
R. Pension and Postretirement Benefit Plans
The majority of our employees worldwide are covered by defined benefit pension plans, defined contribution plans or both. In the U.S., we have both IRC-qualified and supplemental (non-qualified) defined benefit plans and defined contribution plans, as well as other postretirement benefit plans consisting primarily of medical insurance for retirees and their eligible dependents. Net periodic pension and postretirement benefit costs other than the service costs are recognized in Other (income)/deductions—net. We immediately recognize actuarial gains and losses arising from the remeasurement of our pension and postretirement plans (MTM Accounting). Each time a pension or postretirement plan is remeasured, the actuarial gain or loss is recognized immediately and classified as Other (income)/deductions––net. We recognize the overfunded or underfunded status of each of our defined benefit plans as an asset or liability. The obligations are generally measured at the actuarial present value of all benefits attributable to employee service rendered, as provided by the applicable benefit formula. Our pension and other postretirement obligations may be determined using assumptions such as discount rate, expected annual rate of return on plan assets, expected employee turnover and participant mortality. For our pension plans, the obligation may also include assumptions as to future compensation levels. For our other postretirement benefit plans, the obligation may include assumptions as to the expected cost of providing medical insurance benefits, as well as the extent to which those costs are shared with the employee or others (such as governmental programs). Plan assets are measured at fair value.

S. Legal and Environmental Contingencies
We and certain of our subsidiaries are subject to numerous contingencies arising in the ordinary course of business, such as patent litigation, product liability and other product-related litigation, commercial and other asserted or unasserted matters, environmental claims and proceedings, government investigations and guarantees and indemnifications. In assessing contingencies related to legal and environmental proceedings that are pending against the Company, or unasserted claims that are probable of being asserted, we record accruals for these contingencies to the extent that we conclude that a loss is both probable and reasonably estimable. If some amount within a range of loss appears to be a better estimate than any other amount within the range, we accrue that amount. Alternatively, when no amount within a range of loss appears to be a better estimate than any other amount, we accrue the lowest amount in the range. We record anticipated recoveries under existing insurance contracts when recovery is assured.
T. Share-Based Payments
Our compensation programs can include share-based payments. Generally, grants under share-based payment programs are accounted for at fair value and these fair values are generally amortized on a straight-line basis or on an accelerated attribution approach over the vesting terms with the related costs recorded in Cost of sales, Selling, informational and administrative expenses and/or Research and development expenses, as appropriate.
v3.22.4
Acquisitions, Divestitures, Equity-Method Investments, Licensing Arrangements and Collaborative Arrangements
 12 Months Ended
Dec. 31, 2022
Business Combinations, Discontinued Operations And Disposal Groups, Collaborative Arrangements And Equity Method Investments [Abstract]  
Acquisitions, Divestitures, Equity-Method Investments, Licensing Arrangements and Collaborative Arrangements Acquisitions, Divestitures, Equity-Method Investments, Licensing Arrangements and Collaborative Arrangements
A. Acquisitions

GBT––On October 5, 2022, we acquired GBT, a biopharmaceutical company dedicated to the discovery, development and delivery of life-changing treatments that provide hope to underserved patient communities, starting with sickle cell disease, for $68.50 per share in cash. The total fair value of the consideration transferred was $5.7 billion ($5.2 billion, net of cash acquired). In addition, $136 million in payments to GBT employees for the fair value of previously unvested long-term incentive awards was recognized as post-closing compensation expense and recorded in Restructuring charges and certain acquisition-related costs (see Note 3).
In connection with this business combination, we provisionally recorded: (i) $4.4 billion in Identifiable intangible assets, consisting of $3.0 billion of IPR&D and $1.4 billion of developed technology rights with a useful life of six years, (ii) $1.1 billion of Goodwill, (iii) $681 million of inventories to be sold over approximately three years, (iv) $570 million of net deferred tax liabilities and (v) $331 million of assumed long-term debt that was paid in full in the fourth quarter of 2022. The allocation of the consideration transferred to the assets acquired and liabilities assumed has not yet been finalized.
Biohaven––On October 3, 2022, we acquired Biohaven, the maker of Nurtec ODT/Vydura (rimegepant), an innovative therapy approved for both acute treatment of migraine and prevention of episodic migraine in adults. The transaction includes the acquisition of Biohaven’s CGRP programs, including rimegepant, zavegepant and a portfolio of five pre-clinical CGRP assets. Under the terms of the agreement, we acquired all outstanding common shares of Biohaven not already owned by us for $148.50 per share, in cash, for payments of approximately $11.5 billion, plus repayment of third-party debt of $863 million and redemption of Biohaven’s redeemable preferred stock for $495 million. Effective immediately prior to the closing of the acquisition, Biohaven completed the spin-off of Biohaven Ltd. (NYSE: BHVN), distributing Biohaven Ltd.’s shares to Biohaven shareholders. Biohaven Ltd. is a new publicly traded company that retained Biohaven’s non-CGRP development stage pipeline compounds. Pfizer, a Biohaven shareholder, received a pro rata portion of Biohaven Ltd.’s shares in the distribution and owns approximately 1.5% of Biohaven Ltd. as of December 31, 2022.
This acquisition follows on the November 2021 collaboration for the commercialization of rimegepant and zavegepant outside the U.S., in connection with which Pfizer acquired 2.6% of Biohaven’s common stock (see Note 2E). Biohaven Ltd. will also have the right to receive tiered royalties from Pfizer on any annual net sales of rimegepant and zavegepant in the U.S. in excess of $5.25 billion. This contingent consideration was determined to have no fair value as of the acquisition date. After the acquisition, we remain responsible for payment of high single digit to mid-teen percentage tiered royalties on world-wide net sales excluding China and low to high single digit royalties on net sales in China of rimegepant and zavegepant as well as certain regulatory approval and commercial milestone payments associated with rimegepant and zavegepant of up to $1.1 billion under pre-existing third-party license and other agreements.
The total fair value of the consideration transferred was $11.8 billion, which includes the fair value of Pfizer’s previous investment in Biohaven on the acquisition date of approximately $300 million. In connection with this business combination, we provisionally recorded: (i) $12.1 billion in Identifiable intangible assets, consisting of $11.6 billion of developed technology rights with a useful life of 11 years and $450 million of IPR&D, (ii) $817 million of inventories to be sold over approximately two years, (iii) $797 million of Goodwill, (iv) $398 million of trade accounts receivable, (v) $1.4 billion of assumed long-term debt that was paid in full in the fourth quarter of 2022, (vi) $566 million of net deferred tax liabilities and (vii) $477 million of Other current liabilities. The allocation of the consideration transferred to the assets acquired and liabilities assumed has not yet been finalized.
ReViral––On June 9, 2022, we acquired ReViral, a privately held, clinical-stage biopharmaceutical company focused on discovering, developing and commercializing novel antiviral therapeutics that target respiratory syncytial virus, for a total consideration of up to $536 million, including upfront payments of $436 million upon closing (including a base payment of $425 million plus working capital adjustments) and an additional $100 million contingent upon a future development milestone. It was subsequently determined the applicable milestone was not achieved.
We accounted for the transaction as an asset acquisition since the lead asset, sisunatovir, represented substantially all of the fair value of the gross assets acquired. At the acquisition date, we recorded a $426 million charge representing an acquired IPR&D asset with no alternative use in Acquired in-process research and development expenses, which is presented as a cash outflow from operating activities. Other assets acquired and liabilities assumed were not significant.
Arena––On March 11, 2022, we acquired Arena, a clinical stage company, for $100 per share in cash. The total fair value of the consideration transferred was $6.6 billion ($6.2 billion, net of cash acquired). In addition, $138 million in payments to Arena employees for the fair value of previously unvested long-term incentive awards was recognized as post-closing compensation expense and recorded in Restructuring charges and certain acquisition-related costs (see Note 3).
Arena’s portfolio includes development-stage therapeutic candidates in gastroenterology, dermatology, and cardiology, including etrasimod, an oral, selective sphingosine 1-phosphate (S1P) receptor modulator currently in development for a range of immuno-inflammatory diseases including UC, Crohn’s disease, atopic dermatitis, eosinophilic esophagitis, and alopecia areata. In connection with this business combination, we provisionally recorded: (i) $5.5 billion in Identifiable intangible assets, consisting of $5.0 billion of IPR&D and $460 million of indefinite-lived licensing agreements and other, (ii) $1.0 billion of Goodwill and (iii) $506 million of net deferred tax liabilities. The allocation of the consideration transferred to the assets acquired and the liabilities assumed has not yet been finalized.
Trillium––On November 17, 2021, we acquired all of the issued and outstanding common stock not already owned by Pfizer of Trillium, a clinical stage immuno-oncology company developing therapies targeting cancer immune evasion pathways and specific cell targeting approaches, for $18.50 per share in cash, for total consideration of $2.0 billion, net of cash acquired. As a result, Trillium became our wholly owned subsidiary. We previously held a 2% ownership investment in Trillium. Trillium’s lead program, TTI-622, is an investigational fusion protein that is designed to block the inhibitory activity of CD47, a molecule that is overexpressed by a wide variety of tumors.
We accounted for the transaction as an asset acquisition since the lead asset, TTI-622, represented substantially all of the fair value of the gross assets acquired, which exclude cash acquired. At the acquisition date, we recorded a $2.1 billion charge representing an acquired IPR&D asset with no alternative future use in Acquired in-process research and development expenses, of which the $2.0 billion net cash consideration is presented as a cash outflow from operating activities. In connection with this acquisition, we recorded $256 million of assets acquired primarily consisting of cash and investments. Liabilities assumed were approximately $81 million.
Array––On July 30, 2019, we acquired Array, a commercial stage biopharmaceutical company focused on the discovery, development and commercialization of targeted small molecule medicines to treat cancer and other diseases of high unmet need, for $48 per share in cash. The total fair value of the consideration transferred was $11.2 billion ($10.9 billion, net of cash acquired). In addition, $157 million in payments to Array employees for the fair value of previously unvested stock options was recognized as post-closing compensation expense and recorded in Restructuring charges and certain acquisition-related costs (see Note 3). We financed the majority of the transaction with debt and the balance with existing cash. Array’s portfolio includes Braftovi (encorafenib) and Mektovi (binimetinib), a broad pipeline of targeted cancer medicines in different stages of R&D, as well as a portfolio of out-licensed medicines, which may generate milestones and royalties over time.
The final allocation of the consideration transferred to the assets acquired and the liabilities assumed was completed in 2020. In connection with this business combination, we recorded: (i) $6.3 billion in Identifiable intangible assets, consisting of $2.0 billion of developed technology rights with a useful life of 16 years, $2.8 billion of IPR&D and $1.5 billion of licensing agreements and other ($1.2 billion for technology in development––indefinite-lived licensing agreements and $360 million for developed technology––finite-lived licensing agreements with a useful life of 10 years), (ii) $6.1 billion of Goodwill, (iii) $1.1 billion of net deferred tax liabilities and (iv) $451 million of assumed long-term debt, which was paid in full in 2019.
In 2020, we recorded measurement period adjustments to the estimated fair values initially recorded in 2019, which resulted in a reduction in Identifiable intangible assets of approximately $900 million with a corresponding change to Goodwill and net deferred tax liabilities. The measurement period adjustments were recorded to better reflect market participant assumptions about facts and circumstances existing as of the acquisition date and did not have a material impact on our consolidated statement of income for the year ended December 31, 2020.
Pro forma information for the aforementioned acquisitions has not been presented because these acquisitions were not material to our consolidated financial statements.

B. Divestitures

Meridian––On December 31, 2021, we completed the sale of our Meridian subsidiary for approximately $51 million in cash and recognized a loss of approximately $167 million, net of tax, in Discontinued operations––net of tax. In connection with the sale, Pfizer and the purchaser of Meridian entered into various agreements to provide a framework for our relationship after the sale, including interim TSAs and an MSA. The TSAs primarily involve Pfizer providing services related to IT, among other activities, and are generally expected to be for terms of no more
than 12 to 18 months post sale. The MSA is for a term of three years post sale with a two year extension period. In 2022, the amounts recorded under the interim TSAs and MSA were not material to our consolidated results of operations. No amounts were recorded under these arrangements in 2021.
Upjohn Separation and Combination with Mylan––On November 16, 2020, we completed the spin-off and the combination of the Upjohn Business with Mylan (the Transactions) to form Viatris. The Transactions were structured as an all-stock, Reverse Morris Trust transaction. Specifically, (i) we contributed the Upjohn Business to a wholly owned subsidiary, which was renamed Viatris, so that the Upjohn Business was separated from the remainder of our business (the Separation), (ii) following the Separation, we distributed, on a pro rata basis, all of the shares of Viatris common stock held by Pfizer to Pfizer stockholders as of the November 13, 2020 record date, such that each Pfizer stockholder as of the record date received approximately 0.124079 shares of Viatris common stock per share of Pfizer common stock (the Distribution); and (iii) immediately after the Distribution, the Upjohn Business combined with Mylan in a series of transactions in which Mylan shareholders received one share of Viatris common stock for each Mylan ordinary share held by such shareholder, subject to any applicable withholding taxes (the Combination). Prior to the Distribution, Viatris made a cash payment to Pfizer equal to $12.0 billion as partial consideration for the contribution of the Upjohn Business to Viatris. As of the closing of the Combination, Pfizer stockholders owned approximately 57% of the outstanding shares of Viatris common stock, and Mylan shareholders owned approximately 43% of the outstanding shares of Viatris common stock, in each case on a fully diluted, as-converted and as-exercised basis. The Transactions are generally expected to be tax free to Pfizer and Pfizer stockholders for U.S. tax purposes. Beginning November 16, 2020, Viatris operates both the Upjohn Business and Mylan as an independent publicly traded company, which is traded under the symbol “VTRS” on the NASDAQ.
In connection with the Transactions, in June 2020, Upjohn Inc. and Upjohn Finance B.V. completed privately placed debt offerings of $7.45 billion and €3.60 billion aggregate principal amounts, respectively, (approximately $11.4 billion) of senior unsecured notes and entered into other financing arrangements, including a $600 million delayed draw term loan agreement and a revolving credit facility agreement for up to $4.0 billion. Proceeds from the debt offerings and other financing arrangements were used to fund the $12.0 billion cash distribution Viatris made to Pfizer prior to the Distribution. We used the cash distribution proceeds to pay down commercial paper borrowings and redeem the $1.15 billion aggregate principal amount outstanding of our 1.95% senior unsecured notes that were due in June 2021 and $342 million aggregate principal amount outstanding of our 5.80% senior unsecured notes that were due in August 2023, before the maturity date. Interest expense for the $11.4 billion in debt securities incurred during 2020 is included in Discontinued operations––net of tax. Following the Separation and Combination of the Upjohn Business with Mylan, we are no longer the obligor or guarantor of any Upjohn debt or Upjohn financing arrangements.
As a result of the spin-off of the Upjohn Business, we distributed net assets of $1.6 billion as of November 16, 2020, which was reflected as a reduction to Retained earnings and reflects the 2021 MTM change in accounting principle. Of this amount, $412 million represents cash transferred to the Upjohn Business, with the remainder considered a non-cash activity in the consolidated statement of cash flows for the year ended December 31, 2020. The spin-off also resulted in a net increase to Accumulated other comprehensive loss of $423 million for the derecognition of net gains on foreign currency translation adjustments of $397 million and prior service net credits associated with benefit plans of $26 million, which were reclassified to Retained earnings.
As a result of the separation of Upjohn, we incurred separation-related costs of $434 million in 2020, which are included in Discontinued operations––net of tax. These costs primarily relate to professional fees for regulatory filings and separation activities within finance, tax, legal and information system functions as well as investment banking fees.
In connection with the Transactions, Pfizer and Viatris entered into various agreements to effect the Separation and Combination and to provide a framework for our relationship after the Combination, including a separation and distribution agreement, interim operating models, including agency arrangements, MSAs, TSAs, a tax matters agreement, and an employee matters agreement, among others. The interim agency operating model arrangements primarily include billings, collections and remittance of rebates that we are performing on a transitional basis on behalf of Viatris. Under the MSAs, Pfizer or Viatris, as the case may be, manufactures, labels and packages products for the other party. The terms of the MSAs range in initial duration from four to seven years post-Separation. The TSAs primarily involve Pfizer providing services to Viatris related to finance, IT and human resource infrastructure and are generally expected to be for terms of no more than three years post-Separation. The amounts recorded under the above agreements were not material to our consolidated results of operations in 2022, 2021 and 2020.
Net amounts due to Viatris under the above agreements were $94 million as of December 31, 2022 and net amounts due from Viatris under the above arrangements were $53 million as of December 31, 2021. The cash flows associated with the above agreements are included in Net cash provided by operating activities from continuing operations, except for a $277 million payment to Viatris made in 2021 pursuant to terms of the separation agreement, which is reported in Other financing activities, net.
Components of Discontinued operations––net of tax:
Year Ended December 31,(a)
(MILLIONS)202220212020
Revenues$— $277 $7,572 
Costs and expenses:
Cost of sales— 204 2,106 
Selling, informational and administrative expenses8 26 1,682 
Research and development expenses— 9 224 
Acquired in-process research and development expenses— — — 
Amortization of intangible assets — 45 224 
Restructuring charges and certain acquisition-related costs— 2 29 
Other (income)/deductions––net(20)365 428 
Pre-tax income/(loss) from discontinued operations12 (375)2,879 
Provision/(benefit) for taxes on income13 (107)349 
Income/(loss) from discontinued operations––net of tax(1)(268)2,529 
Pre-tax gain/(loss) on sale of discontinued operations10 (211)— 
Provision/(benefit) for taxes on income2 (44)— 
Gain/(loss) on sale of discontinued operations––net of tax7 (167)— 
Discontinued operations––net of tax$6 $(434)$2,529 
(a)In 2022, Discontinued operations—net of tax relates to post-close adjustments. In 2021, Discontinued operations—net of tax primarily includes (i) the operations of Meridian prior to its sale on December 31, 2021 recognized in Income/(loss) from discontinued operations—net of tax, which includes a pre-tax amount to resolve a MDL relating to EpiPen against the Company in the U.S. District Court for the District of Kansas for $345 million; and (ii) the after tax loss of $167 million related to the sale of Meridian recognized in Gain/(loss) on sale of discontinued operations––net of tax. To a much lesser extent, Discontinued operations—net of tax in 2021 also includes the operations of the Mylan-Japan collaboration prior to its termination on December 21, 2020 and post-close adjustments directly related to our former Upjohn and Nutrition discontinued businesses, including adjustments for tax, benefits and legal-related matters recognized in Income/(loss) from discontinued operations—net of tax. In 2020, Discontinued operations—net of tax relates to the operations of the Upjohn Business, Meridian and the Mylan-Japan collaboration and includes the impact of the 2021 MTM change in accounting principle, pre-tax interest expense of $116 million associated with the U.S. dollar and Euro denominated senior unsecured notes issued by Upjohn Inc. and Upjohn Finance B.V. in the second quarter of 2020 and pre-tax charges of $223 million related to the remeasurement of Euro debt issued by Upjohn Finance B.V. in the second quarter of 2020.
C. Equity-Method Investments
Haleon/Consumer Healthcare JV––On July 31, 2019, we completed a transaction in which we and GSK combined our respective consumer healthcare businesses into a new JV that operated globally under the GSK Consumer Healthcare name. In exchange for the contribution of our consumer healthcare business to the JV, we received a 32% equity stake in the new company and GSK owned the remaining 68%. On July 18, 2022, GSK completed a demerger of the Consumer Healthcare JV which became Haleon, an independent, publicly traded company listed on the London Stock Exchange that holds the joint Consumer Healthcare business of GSK and Pfizer following the demerger. We continue to own 32% of the ordinary shares of Haleon after the demerger, and we account for our interest in Haleon/the Consumer Healthcare JV as an equity-method investment.
The carrying value of our investment in Haleon as of December 31, 2022 and in the Consumer Healthcare JV as of December 31, 2021 is $10.8 billion and $16.3 billion, respectively, and is reported in Equity-method investments. The fair value of our investment in Haleon as of December 31, 2022, based on quoted market prices of Haleon stock, was $11.7 billion. Haleon/the Consumer Healthcare JV is a foreign investee whose reporting currency is the U.K. pound, and therefore we translate its financial statements into U.S. dollars and recognize the impact of foreign currency translation adjustments in the carrying value of our investment and in other comprehensive income. The decrease in the value of our investment from December 31, 2021 to December 31, 2022 is primarily due to dividends totaling approximately $4.5 billion, of which cash flows of $4.0 billion are included in Net cash provided by/(used in) investing activities and $584 million are included in Net cash provided by operating activities, as well as $1.4 billion in pre-tax foreign currency translation adjustments (see Note 6), partially offset by our share of Haleon/the Consumer Healthcare JV’s earnings. We record our share of earnings from Haleon/the Consumer Healthcare JV on a quarterly basis on a one-quarter lag in Other (income)/deductions––net. Our total share of Haleon/the Consumer Healthcare JV’s earnings generated in the fourth quarter of 2021 and the first nine months of 2022, which we recorded in our operating results in 2022, was $536 million. Our total share of the JV’s earnings generated in the fourth quarter of 2020 and the first nine months of 2021, which we recorded in our operating results in 2021, was $495 million. Our total share of the JV’s earnings generated in the fourth quarter of 2019 and the first nine months of 2020, which we recorded in our operating results in 2020, was $417 million. As part of the initial accounting for our investment in the Consumer Healthcare JV in 2019, we determined that the difference between the initial fair value of our investment less our underlying equity in the carrying value of the net assets of the JV resulted in an initial excess basis difference of $4.8 billion. We allocated the difference primarily to inventory, definite-lived intangible assets, indefinite-lived intangible assets, related deferred tax liabilities, and equity-method goodwill. We recognize amortization of these basis differences in Other (income)/deductions––net. Amortization of basis differences on inventory and related deferred tax liabilities was completely recognized by the second quarter of 2020. Basis differences on definite-lived intangible assets and related deferred tax liabilities are being amortized over the lives of the underlying assets, which range from 8 to 20 years. In 2022, our equity-method income included in Other (income)/ deductions––net also includes charges of $100 million, primarily for adjustments to our equity-method basis differences related to the separation of Haleon/the Consumer Healthcare JV from GSK. The total amortization and adjustment of basis differences was not material to our results of operations in 2021 and 2020. See Note 4.
Summarized financial information for our equity-method investee, Haleon/the Consumer Healthcare JV, as of September 30, 2022, the most recent period available, and as of September 30, 2021 and for the periods ending September 30, 2022, 2021, and 2020 is as follows:
(MILLIONS)September 30, 2022September 30, 2021
Current assets$5,932 $6,890 
Noncurrent assets35,204 39,445 
Total assets
$41,137 $46,335 
Current liabilities$5,235 $5,133 
Noncurrent liabilities17,220 5,218 
Total liabilities
$22,455 $10,351 
Equity attributable to shareholders$18,455 $35,705 
Equity attributable to noncontrolling interests227 279 
Total net equity$18,682 $35,984 
For the Twelve Months Ending
(MILLIONS)September 30, 2022September 30, 2021September 30, 2020
Net sales$13,566 $12,836 $12,720 
Cost of sales(5,081)(4,755)(5,439)
Gross profit$8,486 $8,081 $7,281 
Income from continuing operations1,745 1,614 1,350 
Net income1,745 1,614 1,350 
Income attributable to shareholders1,675 1,547 1,307 
In connection with GSK’s previously announced planned demerger of at least 80% of GSK’s 68% equity interest in the Consumer Healthcare JV, in March 2022 the Consumer Healthcare JV completed its offering of a total aggregate principal amount of $8.75 billion in U.S. dollar-denominated senior notes of various maturities, €2.35 billion in euro-denominated senior notes of various maturities and £700 million in U.K. pound-denominated senior notes of various maturities (collectively, the “notes”). The notes were guaranteed by GSK generally up to and excluding the date of the demerger (the “Guarantee Assumption Date”). We agreed to indemnify GSK for 32% (representing our pro rata equity interest in the Consumer Healthcare JV) of any amount payable by GSK pursuant to its guarantee of the notes. Our indemnity was provided solely for the benefit of GSK. Neither we nor any of our subsidiaries were an issuer or guarantor of any of the notes.
Following its issuance of the notes in March 2022, which fell in our international second quarter of 2022, the Consumer Healthcare JV loaned to us and GSK the net proceeds received from the notes on a pro rata equity ownership basis, for which we received a loan of £2.9 billion ($3.7 billion as of the end of our second quarter of 2022), at an interest rate of 1.365% per annum payable semi-annually in arrears. In conjunction with the demerger, we received £3.5 billion ($4.2 billion) in dividends from the JV in July 2022, of which $4.0 billion related to a one-time pre-separation dividend, which decreased the carrying value of our investment (as discussed above). Simultaneous with the receipt of the dividends, we repaid the £2.9 billion loan from the JV. GSK similarly received pro rata dividends and simultaneously repaid its pro rata loan from the JV. In conjunction with these transactions, our indemnification of GSK’s guarantee discussed above was terminated.
Investment in ViiV––In 2009, we and GSK created ViiV, which is focused on research, development and commercialization of human immunodeficiency virus (HIV) medicines. We own approximately 11.7% of ViiV, and prior to 2016 we accounted for our investment under the equity method due to the significant influence that we have over the operations of ViiV through our board representation and minority veto rights. We suspended application of the equity method to our investment in ViiV in 2016 when the carrying value of our investment was reduced to zero due to the recognition of cumulative equity-method losses and dividends, and therefore we no longer record our proportionate share of ViiV’s net income (loss) in our results of operations. Since 2016, we have recognized dividends from ViiV as income in Other (income)/deductions––net when earned, including dividends of $314 million in 2022, $166 million in 2021 and $278 million in 2020 (see Note 4).
Summarized financial information for our equity-method investee, ViiV, as of December 31, 2022 and 2021 and for the years ending December 31, 2022, 2021, and 2020 is as follows:
As of December 31,
(MILLIONS)20222021
Current assets$4,043 $3,608 
Noncurrent assets3,014 3,563 
Total assets
$7,057 $7,171 
Current liabilities$3,780 $3,497 
Noncurrent liabilities5,996 6,536 
Total liabilities
$9,777 $10,033 
Total net equity/(deficit) attributable to shareholders$(2,720)$(2,862)
Year Ended December 31,
(MILLIONS)202220212020
Net sales$6,955 $6,380 $6,224 
Cost of sales(819)(682)(574)
Gross profit$6,135 $5,698 $5,650 
Income from continuing operations3,108 2,040 2,012 
Net income3,108 2,040 2,012 
Income attributable to shareholders3,108 2,040 2,012 
D. Licensing Arrangements
Agreement with Valneva––On April 30, 2020, we signed an agreement to co-develop and commercialize Valneva’s Lyme disease vaccine candidate, VLA15, which covers six serotypes that are prevalent in North America and Europe. Valneva and Pfizer will work closely together throughout the development of VLA15. Valneva is eligible to receive a total of up to $308 million in cash payments from us consisting of a $130 million upfront payment, which was paid and recorded in Acquired in-process research and development expenses in our second quarter of 2020, as well as $35 million in development milestones which were paid and recorded in Acquired in-process research and development expenses in 2021 and 2022, and $143 million in early commercialization milestones which remain unpaid. Under the terms of the agreement, Valneva was to fund 30% of all development costs through completion of the development program, and in return we were to pay Valneva tiered royalties. We will lead late-stage development and have sole control over commercialization.
In June 2022, we entered into an Equity Subscription Agreement, under which we invested €90.5 million ($95 million) in Valneva to further support our strategic Lyme arrangement. In addition, we updated the terms of our existing agreement for VLA15. Valneva will now fund 40% of the remaining shared development costs, and we will pay Valneva tiered royalties ranging from 14% to 22%, compared to royalties starting at 19% in the initial agreement. In addition, the royalties will be complemented by up to $100 million in milestones payable to Valneva based on cumulative sales. Other early commercialization milestones are unchanged. As of December 31, 2022, we held a 6.9% equity stake of Valneva.
E. Collaborative Arrangements
We enter into collaborative arrangements with respect to in-line medicines, as well as medicines in development that require completion of research and regulatory approval. Collaborative arrangements are contractual agreements with third parties that involve a joint operating activity, typically a research and/or commercialization effort, where both we and our partner are active participants in the activity and are exposed to the significant risks and rewards of the activity. Our rights and obligations under our collaborative arrangements vary. For example, we have agreements to co-promote pharmaceutical products discovered by us or other companies, and we have agreements where we partner to co-develop and/or participate together in commercializing, marketing, promoting, manufacturing and/or distributing a drug product.
Collaboration with Biohaven––In November 2021, we entered into a collaboration and license agreement and related sublicense agreement with Biohaven and certain of its subsidiaries to commercialize rimegepant and zavegepant for the treatment and prevention of migraines outside of the U.S., subject to regulatory approval. Under the terms of the agreement, Biohaven would lead R&D globally and we would have the exclusive right to commercialization globally, outside of the U.S. Upon the closing of the transaction on January 4, 2022, we paid Biohaven $500 million, including an upfront payment of $150 million and an equity investment of $350 million. We recognized $263 million for the upfront payment and premium paid on our equity investment in Acquired in-process research and development expenses. In October 2022, we acquired all outstanding common shares of Biohaven not already owned by us for $148.50 per share, in cash, for payments of approximately $11.5 billion. See Note 2A. This acquisition represented a settlement of the pre-existing relationship, and we determined that no gain or loss was required to be recognized.
Collaborations with BioNTech––On December 30, 2021, we entered into a research, development and commercialization agreement to develop a potential first mRNA-based vaccine for the prevention of shingles (herpes zoster virus) based on BioNTech’s proprietary mRNA technology and our antigen technology. Under the terms of the agreement, we agreed to pay BioNTech $225 million, including an upfront cash payment of $75 million and an equity investment of $150 million. BioNTech is eligible to receive future regulatory and sales milestone payments of up to $200 million. In return, BioNTech agreed to pay us $25 million for our proprietary antigen technology. The net upfront payment to BioNTech was recorded to Acquired in-process research and development expenses in our fourth quarter of 2021. We and BioNTech share development costs. We will have commercialization rights to the potential vaccine worldwide, excluding Germany, Turkey and certain developing countries where BioNTech will have commercialization rights. We and BioNTech will share gross profits from commercialization of any product.
On April 9, 2020, we signed a global agreement with BioNTech to co-develop a mRNA-based coronavirus vaccine program aimed at preventing COVID-19 infection, which resulted in the development of Comirnaty. In connection with the April 2020 agreement, we made an upfront cash payment of $72 million and an equity investment in the common stock of BioNTech of $113 million. We recognized $98 million for the upfront payment and a premium paid on the equity investment in Acquired in-process research and development expenses in our second quarter of 2020. BioNTech became eligible to receive potential milestone payments of up to $563 million for a total consideration of $748 million. Under the terms of this agreement, we and BioNTech share gross profits and development costs equally after approval and successful commercialization of the vaccine, and we were responsible for all of the development costs until commercialization of the vaccine. Thereafter, BioNTech was to repay us its 50 percent share of these development costs through reductions in gross profit sharing and milestone payments to BioNTech over time. On January 29, 2021, we and BioNTech signed an amended version of the April 2020 agreement. Under the January 2021 agreement, BioNTech paid us their 50 percent share of prior development costs in a lump sum payment during the first quarter of 2021. Further R&D costs are being shared equally. We have commercialization rights to the vaccine worldwide, excluding Germany and Turkey where BioNTech markets and distributes the vaccine under the agreement with us, and excluding China, Hong Kong, Macau and Taiwan, which are subject to a separate collaboration between BioNTech and Shanghai Fosun Pharmaceutical (Group) Co., Ltd. We recognize
Revenues and Cost of sales on a gross basis in markets where we are commercializing the vaccine and we record our share of gross profits related to sales of the vaccine by BioNTech in Germany and Turkey in Alliance revenues.
We made an additional investment of $50 million in common stock of BioNTech as part of an underwritten equity offering by BioNTech, which closed in July 2020. As of December 31, 2022, we held an equity stake of 2.7% of BioNTech.
Collaboration with Beam––On December 24, 2021, we entered into a multi-year research collaboration with Beam to utilize Beam’s in vivo base editing programs, which use mRNA and lipid nanoparticles, for three targets for rare genetic diseases of the liver, muscle and central nervous system. Under the terms of the agreement, Beam conducts all research activities through development candidate selection for three undisclosed targets, which are not included in Beam’s existing programs, and we may opt in to obtain exclusive licenses to each development candidate. Beam has a right to opt in, at the end of phase 1/2 studies, upon the payment by Beam of an option exercise fee, to a global co-development and co-commercialization agreement with respect to one program licensed under the collaboration pursuant to which we and Beam would share net profits as well as development and commercialization costs in a 65%/35% ratio (Pfizer/Beam). Upon entering into the agreement, we recorded $300 million in Acquired in-process research and development expenses in the fourth quarter of 2021 for an upfront payment due to Beam, and if we exercise our opt in to licenses for all three targets, Beam will be eligible for up to an additional $1.05 billion in development, regulatory and commercial milestone payments for a potential total deal consideration of up to $1.35 billion. Beam is also eligible to receive royalties on global net sales for each licensed program.
Collaboration with Arvinas––On July 21, 2021, we entered into a global collaboration with Arvinas to develop and commercialize ARV-471, an investigational oral PROTAC® (PROteolysis TArgeting Chimera) estrogen receptor protein degrader. The estrogen receptor is a well-known disease driver in most breast cancers. In connection with the agreement, we made an upfront cash payment of $650 million to Arvinas and we made a $350 million equity investment in the common stock of Arvinas. We recognized $706 million for the upfront payment and a premium paid on our equity investment in Acquired in-process research and development expenses in our third quarter of 2021. Arvinas is also eligible to receive up to $400 million in approval milestones and up to $1 billion in commercial milestones. The companies will equally share worldwide development costs, commercialization expenses and profits. As of December 31, 2022, we held a 6.5% equity stake of Arvinas.
Collaboration with Myovant––On December 26, 2020, we entered into a collaboration with Myovant to jointly develop and commercialize Orgovyx (relugolix) in advanced prostate cancer and Myfembree (relugolix 40 mg, estradiol 1.0 mg, and norethindrone acetate 0.5 mg) in women’s health in the U.S. and Canada. We also received an exclusive option to commercialize relugolix in oncology outside the U.S. and Canada, excluding certain Asian countries, which we declined to exercise. Under the terms of the agreement, the companies equally share profits and allowable expenses in the U.S. for Orgovyx, and in the U.S. and Canada for Myfembree, with Myovant bearing our share of allowable expenses up to a maximum of $100 million in 2021 and up to a maximum of $50 million in 2022. Pfizer does not have rights outside of these markets. We record our share of gross profits as Alliance revenue. Myovant remains responsible for regulatory interactions and drug supply and continues to lead clinical development for Myfembree. Myovant is entitled to receive up to $4.35 billion, including an upfront payment of $650 million, which was made in December 2020, $200 million in potential regulatory milestones for FDA approvals for Myfembree in women’s health, all of which has been paid to Myovant as of December 31, 2022 and recognized as Identifiable intangible assets—Developed technology rights, and tiered sales milestones of up to $3.5 billion in total for prostate cancer and for the combined women’s health indications for which commercial sales have commenced. In connection with this transaction, in 2020 we recognized $499 million in Identifiable intangible assets––Developed technology rights and $151 million in Acquired in-process research and development expenses representing the relative fair value of the portion of the upfront payment allocated to the approved indication and unapproved indications of the product, respectively.
Collaboration with CStone––On September 29, 2020, we entered into a strategic collaboration with CStone to address oncological needs in China. The collaboration encompasses our $200 million upfront equity investment in CStone, the development and commercialization of CStone’s sugemalimab (CS1001, PD-L1 antibody) in mainland China, and a framework between the companies to bring additional oncology assets to the Greater China market. The transaction closed on October 9, 2020. As of December 31, 2022, we held a 9.7% equity stake of CStone.
Summarized Financial Information for Collaborative Arrangements
The following provides the amounts and classification of payments (income/(expense)) between us and our collaboration partners:
Year Ended December 31,
(MILLIONS)202220212020
Revenues—Revenues(a)
$437 $590 $284 
Revenues—Alliance revenues(b)
8,537 7,652 5,418 
Total revenues from collaborative arrangements$8,974 $8,241 $5,703 
Cost of sales(c)
$(15,589)$(16,169)$(61)
Selling, informational and administrative expenses(d)
(196)(175)(194)
Research and development expenses(e)
272 314 (14)
Acquired in-process research and development expenses(f)
(339)(1,056)(179)
Other income/(deductions)—net(g)
664 820 567 
(a)Represents sales to our partners of products manufactured by us.
(b)Substantially all relates to amounts earned from our partners under co-promotion agreements. The increase in 2022 reflects increases in Alliance revenues from Eliquis, Comirnaty and Bavencio, while the increase in 2021 reflects increases in Alliance revenues from Comirnaty, Eliquis and Xtandi.
(c)Primarily relates to amounts paid to collaboration partners for their share of net sales or profits earned in collaboration arrangements where we are the principal in the transaction, and cost of sales for inventory purchased from our partners. The decrease in 2022, as well as the increase in 2021, primarily relate to Comirnaty.
(d)Represents net reimbursements to our partners for selling, informational and administrative expenses incurred.
(e)Represents net reimbursements (to)/from our partners for research and development expenses incurred.
(f)Primarily relates to upfront payments to our partners as well as premiums paid on our equity investments in the common stock of our partners.
(g)Primarily relates to royalties from our collaboration partners.
The amounts outlined in the above table do not include transactions with third parties other than our collaboration partners, or other costs for the products under the collaborative arrangements.
v3.22.4
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives
 12 Months Ended
Dec. 31, 2022
Restructuring and Related Activities [Abstract]  
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives
A. Transforming to a More Focused Company Program
With the formation of the Consumer Healthcare JV in 2019 and the spin-off of our former Upjohn Business in the fourth quarter of 2020, Pfizer transformed into a more focused, global leader in science-based innovative medicines and vaccines. We took efforts to ensure our cost base and support model aligned appropriately with our operating structure. While certain direct costs transferred to the Consumer Healthcare JV in 2019, and to the Upjohn Business in connection with the spin-off, there are indirect costs which did not transfer. This program is primarily composed of the following initiatives:
•We took steps to restructure our corporate enabling functions to appropriately support our business, R&D and PGS platform functions. Actions included, among others, changes in location of certain activities, expanded use and co-location of centers of excellence and shared services, and increased use of digital technologies. The associated actions and the specific costs primarily included severance and benefit plan impacts, exit costs as well as associated implementation costs.
•In addition, we transformed our commercial go-to market model in the way we engage patients and physicians. We also made several organizational changes in the third quarter of 2022 to further transform our operations to better leverage our expertise in certain areas and in anticipation of potential future new product or indication launches (see Note 1A). Actions included, among others, centralization of certain activities and enhanced use of digital technologies. The costs for this effort primarily included severance and associated implementation costs.
•We also optimized our manufacturing network under this program and incurred one-time costs for cost-reduction initiatives related to our manufacturing operations. The costs for this effort included, among other things, severance costs, implementation costs, product transfer costs, site exit costs, as well as accelerated depreciation.
•In the fourth quarter of 2022, we began taking steps to optimize our end-to-end R&D operations to reduce costs and cycle times as well as to further prioritize our internal R&D portfolio in areas where our capabilities are differentiated while increasing external innovation efforts to leverage an expanding and productive biotech sector. Actions include leveraging automation and digital capabilities, novel clinical development approaches and capabilities, and externalization of select assets and R&D units. We expect costs for this effort of $500 million to be incurred primarily through 2023, with costs to primarily represent cash expenditures. The costs for this effort primarily include severance costs and associated implementation costs.
From the start of this program in the fourth quarter of 2019 through December 31, 2022, we incurred costs of $3.5 billion, of which $1.4 billion ($1.0 billion of restructuring charges) is associated with Biopharma. We have incurred approximately 85% of total expected costs to date, and we expect the remaining costs to be substantially incurred through 2023.
B. Key Activities
The following summarizes acquisitions and cost-reduction/productivity initiatives costs and credits:
Year Ended December 31,
(MILLIONS)202220212020
Restructuring charges/(credits):
Employee terminations$776 $680 $474 
Asset impairments52 53 66 
Exit costs/(credits)54 8 (6)
Restructuring charges/(credits)(a)
882 741 535 
Transaction costs(b)
144 20 10 
Integration costs and other(c)
348 41 34 
Restructuring charges and certain acquisition-related costs
1,375 802 579 
Net periodic benefit costs/(credits) recorded in Other (income)/deductions––net
(9)(63)3 
Additional depreciation––asset restructuring recorded in our consolidated statements of income as follows(d):
Cost of sales34 63 21 
Selling, informational and administrative expenses2 23 — 
Research and development expenses— — (3)
Total additional depreciation––asset restructuring
36 87 17 
Implementation costs recorded in our consolidated statements of income as follows(e):
Cost of sales54 45 40 
Selling, informational and administrative expenses560 426 197 
Research and development expenses2 1 1 
Total implementation costs
616 472 238 
Total costs associated with acquisitions and cost-reduction/productivity initiatives$2,018 $1,298 $838 
(a)Primarily represents cost reduction initiatives. Restructuring charges/(credits) associated with Biopharma: ($354 million charge in 2022, $610 million charge in 2021, and $71 million charge in 2020).
(b)Represents external costs for banking, legal, accounting and other similar services.
(c)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. 2022 costs mostly related to our acquisitions of Arena and GBT, including $138 million in payments to Arena employees in the first quarter of 2022 and $136 million in payments to GBT employees in the fourth quarter of 2022 for the fair value of previously unvested long-term incentive awards that was recognized as post-closing compensation expense. See Note 2A. 2021 costs primarily related to our acquisition of Trillium. 2020 costs primarily related to our acquisition of Array.
(d)Represents the impact of changes in the estimated useful lives of assets involved in restructuring actions.
(e)Represents external, 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 CostsAccrual
Balance, January 1, 2021
$782 $— $15 $798 
Provision680 53 8 741 
Utilization and other(a)
(449)(53)34 (468)
Balance, December 31, 2021(b)
1,014 — 57 1,071 
Provision776 52 54 882 
Utilization and other(a)
(594)(52)(103)(750)
Balance, December 31, 2022(c)
$1,196 $— $8 $1,204 
(a)Includes adjustments for foreign currency translation.
(b)Included in Other current liabilities ($816 million) and Other noncurrent liabilities ($255 million).
(c)Included in Other current liabilities ($991 million) and Other noncurrent liabilities ($213 million).
v3.22.4
Other (Income)/Deductions - Net
 12 Months Ended
Dec. 31, 2022
Other Income and Expenses [Abstract]  
Other (Income)/Deductions - Net Other (Income)/Deductions—Net
Components of Other (income)/deductions––net include:
Year Ended December 31,
(MILLIONS)202220212020
Interest income$(251)$(36)$(73)
Interest expense(a)
1,238 1,291 1,449 
Net interest expense
987 1,255 1,376 
Royalty-related income(845)(857)(770)
Net (gains)/losses on asset disposals— (99)237 
Net (gains)/losses recognized during the period on equity securities(b)
1,273 (1,344)(540)
Income from collaborations, out-licensing arrangements and sales of compound/product rights(c)
(188)(396)(326)
Net periodic benefit costs/(credits) other than service costs(849)(2,547)311 
Certain legal matters, net(d)
230 182 28 
Certain asset impairments(e)
421 86 1,691 
Haleon/Consumer Healthcare JV equity method (income)/loss(f)
(436)(471)(298)
Other, net(g)
(378)(687)(497)
Other (income)/deductions––net
$217 $(4,878)$1,213 
(a)Capitalized interest totaled $124 million in 2022, $108 million in 2021 and $96 million in 2020.
(b)2022 losses include, among other things, unrealized losses of $986 million related to investments in BioNTech, Allogene Therapeutics, Inc. and Arvinas. 2021 gains included, among other things, unrealized gains of $1.6 billion related to investments in BioNTech and Cerevel Therapeutics Holdings, Inc. 2020 gains included, among other things, unrealized gains of $405 million related to investments in BioNTech and SpringWorks Therapeutics, Inc.
(c)2022 includes, among other things, $94 million of out-licensing income from multiple licensees. 2021 included, among other things, $188 million of net collaboration income from BioNTech related to Comirnaty and $97 million of milestone income from multiple licensees. 2020 included, among other things, (i) $178 million in milestone income from multiple licensees and (ii) a $75 million upfront payment received from our sale of our CK1 assets to Biogen Inc.
(d)2022 primarily includes certain product liability and other expenses related to products discontinued and/or divested by Pfizer. 2021 primarily includes certain product liability expenses related to products discontinued and/or divested by Pfizer, and to a lesser extent, legal obligations related to pre-acquisition commitments.
(e)2022 primarily includes intangible asset impairment charges of: (i) $200 million associated with our Biopharma segment, representing an IPR&D asset for the unapproved indication of symptomatic dilated cardiomyopathy due to a mutation of the gene encoding the lamin A/C protein, acquired in our Array acquisition, and was a result of the Phase 3 trial reaching futility at a pre-planned interim analysis, (ii) $171 million associated with our Biopharma segment, related to developed technology rights acquired in our Hospira acquisition, and reflect updated commercial forecasts mainly reflecting competitive pressures, and (iii) $50 million associated with PC1, related to finite-lived licensing agreements acquired in our Hospira acquisition, and reflects updated contract manufacturing forecasts reflecting changes to market dynamics. 2020 included intangible asset impairment charges associated with our Biopharma segment that reflected, among other things, updated commercial forecasts mainly reflecting competitive pressures: (i) $900 million related to IPR&D assets for unapproved indications of certain cancer medicines, acquired in our Array acquisition; (ii) $528 million related to Eucrisa, a finite-lived developed technology right acquired in our Anacor Pharmaceuticals, LLC acquisition; and (iii) $263 million related to finite-lived developed technology rights for certain generic sterile injectables acquired in our Hospira acquisition.
(f)See Note 2C.
(g)2022 includes, among other things, (i) dividend income of $314 million from our investment in ViiV, (ii) income net of costs associated with TSAs of $142 million and (iii) charges of $77 million, reflecting the change in the fair value of contingent consideration. 2021 included, among other things, (i) income net of costs associated with TSAs of $288 million, (ii) dividend income of $166 million from our investment in ViiV and (iii) charges of $142 million, reflecting the change in the fair value of contingent consideration. 2020 included, among other things, (i) dividend income of $278 million from our investment in ViiV, (ii) income net of costs associated with TSAs of $114 million and (iii) charges of $105 million, reflecting the change in the fair value of contingent consideration.
The asset impairment charges included in Other (income)/deductions––net are based on estimates of fair value.
Additional information about the intangible assets that were impaired during 2022 (impairment recorded in Other (income)/deductions–net) follows:
Year Ended
Fair Value(a)
December 31, 2022
(MILLIONS)AmountLevel 1Level 2Level 3Impairment
Intangible assets––IPR&D(b)
$— $— $— $— $200 
Intangible assets––Developed technology rights(b)
60 — — 60 171 
Intangible assets––Licensing agreements and other(b)
30 — — 30 50 
Total$90 $— $— $90 $421 
(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.
(b)Reflects intangible assets written down to fair value in 2022. 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.
v3.22.4
Tax Matters
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Tax Matters Tax Matters
A. Taxes on Income from Continuing Operations
Components of Income from continuing operations before provision/(benefit) for taxes on income include:
 Year Ended December 31,
(MILLIONS)202220212020
United States$5,032 $6,064 $(2,887)
International29,697 18,247 9,924 
Income from continuing operations before provision/(benefit) for taxes on income(a), (b)
$34,729 $24,311 $7,036 
(a)2022 v. 2021––The decrease in domestic income is primarily related to net losses on equity securities in 2022 versus net gains on equity securities in 2021, lower net periodic benefit credits and higher restructuring charges and certain acquisition-related costs, partially offset by Paxlovid income and lower acquired IPR&D expenses. The increase in the international income is primarily related to Paxlovid and Comirnaty income partially offset by lower net periodic benefit credits.
(b)2021 v. 2020––The domestic income in 2021 versus domestic loss in 2020 was mainly related to Comirnaty income, lower asset impairment charges, net periodic benefit credits in 2021 versus net periodic benefit costs in 2020 and higher net gains from equity securities, partially offset by higher R&D expenses. The increase in the international income was primarily related to Comirnaty income, net periodic benefit credits in 2021 versus net periodic benefit costs in 2020 and lower asset impairment charges.
Components of Provision/(benefit) for taxes on income based on the location of the taxing authorities include:
 Year Ended December 31,
(MILLIONS)202220212020
United States
Current income taxes:
Federal
$2,744 $3,342 $372 
State and local
(20)34 56 
Deferred income taxes:
Federal
(3,271)(3,850)(1,164)
State and local
(310)(491)(131)
Total U.S. tax provision/(benefit)(857)(964)(867)
International
Current income taxes
4,368 2,769 1,517 
Deferred income taxes
(183)48 (279)
Total international tax provision/(benefit)4,185 2,816 1,237 
Provision/(benefit) for taxes on income
$3,328 $1,852 $370 
The changes in Provision/(benefit) for taxes on income impacting the effective tax rate year-over-year are summarized below:
2022 v. 2021
The higher effective tax rate in 2022 was mainly the result of:
•the non-recurrence of certain initiatives executed in 2021 associated with our investment in the Consumer Healthcare JV with GSK based on estimates and assumptions that we believe to be reasonable,
partially offset by:
•tax benefits in 2022 related to global income tax resolutions in multiple tax jurisdictions spanning multiple tax years that included the closing of U.S. IRS audits covering five tax years.
2021 v. 2020
The higher effective tax rate in 2021 was mainly the result of:
•the change in the jurisdictional mix of earnings primarily related to Comirnaty; and
•lower tax benefits related to the impairment of intangible assets,
partially offset by:
•certain initiatives executed in the third quarter of 2021 associated with our investment in the Consumer Healthcare JV with GSK based on estimates and assumptions that we believe to be reasonable.
In all years, federal, state and international net tax liabilities assumed or established as part of a business acquisition are not included in Provision/(benefit) for taxes on income (see Note 2A).
We elected, with the filing of our 2018 U.S. Federal Consolidated Income Tax Return, to pay our initial estimated $15 billion repatriation tax liability on accumulated post-1986 foreign earnings over eight years through 2026. The fourth annual installment of this liability was paid by its April 18, 2022 due date. The fifth annual installment is due April 18, 2023 and is reported in current Income taxes payable as of December 31, 2022. The remaining liability is reported in noncurrent Other taxes payable. Our obligations may vary as a result of changes in our uncertain tax positions and/or availability of attributes such as foreign tax and other credit carryforwards.
B. Tax Rate Reconciliation
The reconciliation of the U.S. statutory income tax rate to our effective tax rate for Income from continuing operations follows:
 Year Ended December 31,
202220212020
U.S. statutory income tax rate21.0 %21.0 %21.0 %
Taxation of non-U.S. operations (a), (b)
(5.0)(4.3)(9.9)
Tax settlements and resolution of certain tax positions(c)
(3.0)(0.4)(2.7)
Foreign-Derived Intangible Income deduction(d)
(1.9)(0.6)— 
Certain Consumer Healthcare JV initiatives(c)
— (6.0)— 
U.S. R&D tax credit(0.6)(0.5)(1.4)
Interest(e)
0.2 0.4 1.1 
All other, net(f)
(1.1)(2.0)(2.8)
Effective tax rate for income from continuing operations
9.6 %7.6 %5.3 %
(a)For taxation of non-U.S. operations, this rate impact reflects the income tax rates and relative earnings in the locations where we do business outside the U.S., together with the U.S. tax cost on our international operations, changes in uncertain tax positions not included in the reconciling item called “Tax settlements and resolution of certain tax positions,” as well as changes in valuation allowances. Specifically: (i) the jurisdictional location of earnings is a significant component of our effective tax rate each year, and the rate impact of this component is influenced by the specific location of non-U.S. earnings and the level of such earnings as compared to our total earnings; (ii) the U.S. tax implications of our foreign operations is a significant component of our effective tax rate each year and generally offsets some of the reduction to our effective tax rate each year resulting from the jurisdictional location of earnings; (iii) the impact of certain tax initiatives; and (iv) the impact of changes in uncertain tax positions not included in the reconciling item called “Tax settlements and resolution of certain tax positions” is a component of our effective tax rate each year that can result in either an increase or decrease to our effective tax rate. The jurisdictional mix of earnings, which includes the impact of the location of earnings as well as the U.S. tax cost on our international operations, can vary as a result of operating fluctuations in the normal course of business and as a result of the extent and location of other income and expense items, such as restructuring charges, asset impairments and gains and losses on strategic business decisions. See also Note 5A for the components of pre-tax income and Provision/(benefit) for taxes on income, which is based on the location of the taxing authorities, and for information about settlements and other items impacting Provision/(benefit) for taxes on income.
(b)In all years, the reduction in our effective tax rate is a result of the jurisdictional location of earnings and is largely due to lower tax rates in certain jurisdictions, as well as manufacturing and other incentives for our subsidiaries in Singapore and, to a lesser extent, in Puerto Rico. We benefit from Puerto Rican tax incentives pursuant to a grant that expires during 2053. Under such grant, we are partially exempt from income, property and municipal taxes. In Singapore, we benefit from incentive tax rates effective through 2048 on income from manufacturing and other operations.
(c)See Note 5A.
(d)The higher rate benefit from the Foreign-Derived Intangible Income deduction in 2022 is mainly the result of the TCJA requirement to capitalize R&D costs for tax years beginning after December 31, 2021.
(e)Includes changes in interest related to our uncertain tax positions not included in the reconciling item called “Tax settlements and resolution of certain tax positions”.
(f)All other, net is primarily due to routine business operations.
C. Deferred Taxes
Components of our deferred tax assets and liabilities, shown before jurisdictional netting, follow:
2022 Deferred Tax*2021 Deferred Tax*
(MILLIONS)Assets(Liabilities)Assets(Liabilities)
Prepaid/deferred items$1,768 $(533)$1,889 $(456)
Accrued/deferred royalties2,127 — 777 — 
Inventories672 (262)408 (56)
Intangible assets(a)
1,445 (6,288)1,542 (4,577)
Property, plant and equipment112 (1,845)117 (1,647)
Employee benefits(b)
1,314 (276)1,594 (178)
Restructurings and other charges302 — 303 — 
Legal and product liability reserves385 — 373 — 
Research and development(c)
4,137 — 1,656 — 
Net operating loss/tax credit carryforwards(d), (e)
2,224 — 1,431 — 
Unremitted earnings— (51)— (45)
State and local tax adjustments151 — 197 — 
Investments(f)
91 (208)70 (689)
All other78 (56)89 (68)
14,806 (9,519)10,446 (7,714)
Valuation allowances(1,541)— (1,462)— 
Total deferred taxes$13,265 $(9,519)$8,983 $(7,714)
Net deferred tax asset/(liability)(g)
$3,746 $1,269 
*The deferred tax assets and liabilities associated with global intangible low-taxed income are included in the relevant categories. See Note 1Q.
(a)The increase in net deferred tax liabilities in 2022 is primarily due to the acquisition of intangible assets related to GBT, Arena and Biohaven, partially offset by the amortization of intangible assets and certain impairment charges.
(b)The decrease in net deferred tax assets in 2022 is primarily due to changes in pension and postretirement benefit obligations, as well as the performance of plan assets reported in the period. See Note 11.
(c)The increase in deferred tax assets in 2022 is related to the TCJA requirement to capitalize R&D costs for tax years beginning after December 31,2021.
(d)The increase in deferred tax assets in 2022 is primarily due to the acquisition of net operating loss carryforwards and credit carryforwards related to Arena, GBT and Biohaven. See Note 2A.
(e)The amounts in 2022 and 2021 are reduced for unrecognized tax benefits of $1.2 billion and $3.0 billion, respectively, where we have net operating loss carryforwards, similar tax losses, and/or tax credit carryforwards that are available, under the tax law of the applicable jurisdiction, to settle any additional income taxes that would result from the disallowance of a tax position.
(f)The decrease in net deferred tax liabilities in 2022 is primarily due to the impact of foreign currency translation adjustments related to our equity-method investment in Haleon/the Consumer Healthcare JV. See Note 2C.
(g)In 2022, Noncurrent deferred tax assets and other noncurrent tax assets ($4.8 billion), and Noncurrent deferred tax liabilities ($1.0 billion). In 2021, Noncurrent deferred tax assets and other noncurrent tax assets ($1.6 billion), and Noncurrent deferred tax liabilities ($0.3 billion).
We have carryforwards, primarily related to net operating and capital losses, general business credits, foreign tax credits and charitable contributions, which are available to reduce future U.S. federal and/or state, as well as international, income taxes payable with either an indefinite life or expiring at various times from 2023 to 2042. Certain of our U.S. net operating losses and general business credits are subject to limitations under IRC Section 382.
As of December 31, 2022, we have not made a U.S. tax provision on $60.0 billion of unremitted earnings of our international subsidiaries. As these earnings are intended to be indefinitely reinvested overseas, the determination of a hypothetical unrecognized deferred tax liability as of December 31, 2022 is not practicable. The amount of indefinitely reinvested earnings is based on estimates and assumptions and subject to management evaluation, and is subject to change in the normal course of business based on operational cash flow, completion of local statutory financial statements and the finalization of tax returns and audits, among other things. Accordingly, we regularly update our earnings and profits analysis for such events.
D. Tax Contingencies
For a description of our accounting policies associated with accounting for income tax contingencies, see Note 1Q.
Uncertain Tax Positions
As tax law is complex and often subject to varied interpretations, it is uncertain whether some of our tax positions will be sustained upon audit. As of December 31, 2022, we had $2.9 billion and as of December 31, 2021, we had $4.5 billion in net unrecognized tax benefits, excluding associated interest.
•Tax assets for uncertain tax positions primarily represent our estimate of the potential tax benefits in one tax jurisdiction that could result from the payment of income taxes in another tax jurisdiction. These potential benefits generally result from cooperative efforts among taxing authorities, as required by tax treaties to minimize double taxation, commonly referred to as the competent authority process. The recoverability of these assets, which we believe to be more likely than not, is dependent upon the actual payment of taxes in one tax jurisdiction and, in some cases, the successful petition for recovery in another tax jurisdiction. As of December 31, 2022, we had $1.5 billion in assets associated with uncertain tax positions. These amounts were included in Noncurrent deferred tax assets and other noncurrent tax assets ($1.5 billion) and Other taxes payable ($45 million). As of December 31, 2021, we had $1.5 billion in assets associated with uncertain
tax positions. These amounts were included in Noncurrent deferred tax assets and other noncurrent tax assets ($1.4 billion) and Other taxes payable ($105 million).
•Substantially all of these unrecognized tax benefits, if recognized, would impact our effective income tax rate.
The reconciliation of the beginning and ending amounts of gross unrecognized tax benefits follows:
(MILLIONS)202220212020
Balance, beginning$(6,068)$(5,595)$(5,381)
Acquisitions(52)— 37 
Divestitures(a)
— — 265 
Increases based on tax positions taken during a prior period(b)
(67)(111)(232)
Decreases based on tax positions taken during a prior period(b), (c)
1,339 103 64 
Decreases based on settlements for a prior period(c),(d)
842 24 15 
Increases based on tax positions taken during the current period(b)
(701)(550)(411)
Impact of foreign exchange90 22 (72)
Other, net(b), (e)
122 40 120 
Balance, ending(f)
$(4,494)$(6,068)$(5,595)
(a)For 2020, related to the separation of Upjohn. See Note 2B.
(b)Primarily included in Provision/(benefit) for taxes on income.
(c)Primarily related to effectively settling certain issues with the U.S. and foreign tax authorities. See Note 5A.
(d)Primarily related to cash payments and reductions of tax attributes.
(e)Primarily related to decreases as a result of a lapse of applicable statutes of limitations.
(f)In 2022, included in Income taxes payable ($40 million), Other current assets ($3 million), Noncurrent deferred tax assets and other noncurrent tax assets ($1.2 billion), Noncurrent deferred tax liabilities ($5 million) and Other taxes payable ($3.2 billion). In 2021, included in Income taxes payable ($19 million), Other current assets ($42 million), Noncurrent deferred tax assets and other noncurrent tax assets ($3.0 billion), Noncurrent deferred tax liabilities ($5 million) and Other taxes payable ($3.0 billion).
•Interest related to our unrecognized tax benefits is recorded in accordance with the laws of each jurisdiction and is recorded primarily in Provision/(benefit) for taxes on income. In 2022, we recorded a net decrease in interest of $17 million. In 2021 and 2020, we recorded net increases in interest of $108 million and $89 million respectively. Gross accrued interest totaled $552 million as of December 31, 2022 (reflecting a decrease of $31 million as a result of cash payments) and gross accrued interest totaled $601 million as of December 31, 2021 (reflecting a decrease of $1 million as a result of cash payments). In 2022 and 2021, these amounts were substantially all included in Other taxes payable. Accrued penalties are not significant. See also Note 5A.
Status of Tax Matters and Potential Impact on Accruals for Uncertain Tax Positions
The U.S. is one of our major tax jurisdictions, and we are regularly audited by the IRS. During the third quarter of 2022, Pfizer reached resolution of disputed issues at the IRS Independent Office of Appeals, thereby settling all issues related to U.S. tax returns of Pfizer for the years 2011-2015. With respect to Pfizer, tax years 2016-2018 are under audit. Tax years 2019-2022 are open but not under audit. All other tax years are closed. In addition to the open audit years in the U.S., we have open audit years and certain related audits, appeals and investigations in certain major international tax jurisdictions such as Canada (2017-2022), Europe (2012-2022, primarily in Ireland, the U.K., France, Italy, Spain and Germany), Asia Pacific (2012-2022, primarily in China, Japan and Singapore) and Latin America (1998-2022, primarily in Brazil).
Any settlements or statutes of limitations expirations could result in a significant decrease in our uncertain tax positions. We estimate that it is reasonably possible that within the next 12 months, our gross unrecognized tax benefits, exclusive of interest, could decrease by as much as $100 million, as a result of settlements with taxing authorities or the expiration of the statutes of limitations. Our assessments are based on estimates and assumptions that have been deemed reasonable by management, but our estimates of unrecognized tax benefits and potential tax benefits may not be representative of actual outcomes, and variation from such estimates could materially affect our financial statements in the period of settlement or when the statutes of limitations expire, as we treat these events as discrete items in the period of resolution. Finalizing audits with the relevant taxing authorities can include formal administrative and legal proceedings, and, as a result, it is difficult to estimate the timing and range of possible changes related to our uncertain tax positions, and such changes could be significant.
E. Tax Provision/(Benefit) on Other Comprehensive Income/(Loss)
Components of the Tax provision/(benefit) on other comprehensive income/(loss) include:
 Year Ended December 31,
(MILLIONS)202220212020
Foreign currency translation adjustments, net(a)
$(126)$43 $(119)
Unrealized holding gains/(losses) on derivative financial instruments, net183 84 (88)
Reclassification adjustments for (gains)/losses included in net income(270)29 (25)
 (87)114 (113)
Unrealized holding gains/(losses) on available-for-sale securities, net(164)(44)45 
Reclassification adjustments for (gains)/losses included in net income226 (4)(24)
 62 (48)22 
Benefit plans: prior service (costs)/credits and other, net(5)27 12 
Reclassification adjustments related to amortization of prior service costs and other, net(29)(47)(31)
Reclassification adjustments related to curtailments of prior service costs and other, net(3)(18)1 
 (37)(38)(17)
Tax provision/(benefit) on other comprehensive income/(loss)$(187)$71 $(227)
(a)Taxes are not provided for foreign currency translation adjustments relating to investments in international subsidiaries that are expected to be held indefinitely.
v3.22.4
Accumulated Other Comprehensive Loss, Excluding Noncontrolling Interests
 12 Months Ended
Dec. 31, 2022
Equity [Abstract]  
Accumulated Other Comprehensive Loss, Excluding Noncontrolling Interests Accumulated Other Comprehensive Loss, Excluding Noncontrolling Interests
The following summarizes the changes, net of tax, in Accumulated other comprehensive loss:
Net Unrealized Gains/(Losses)Benefit Plans
(MILLIONS)
Foreign Currency Translation Adjustments(a)
Derivative Financial InstrumentsAvailable-For-Sale SecuritiesPrior Service (Costs)/ Credits and OtherAccumulated Other Comprehensive Income/(Loss)
Balance, January 1, 2020$(5,936)$20 $(35)$584 $(5,367)
Other comprehensive income/(loss)883 (448)151 (106)480 
Distribution of Upjohn Business(b)
(397)— — (26)(423)
Balance, December 31, 2020(5,450)(428)116 452 (5,310)
Other comprehensive income/(loss)(722)547 (336)(75)(587)
Balance, December 31, 2021(6,172)119 (220)377 (5,897)
Other comprehensive income/(loss)(2,188)(531)440 (129)(2,407)
Balance, December 31, 2022$(8,360)$(412)$220 $248 $(8,304)
(a)Amounts do not include foreign currency translation adjustments attributable to noncontrolling interests. Foreign currency translation adjustments include net losses in 2022 and 2021 and net gains in 2020 related to our equity-method investment in Haleon/the Consumer Healthcare JV (see Note 2C), and the impact of our net investment hedging program.
(b)For more information, see Note 2B.
v3.22.4
Financial Instruments
 12 Months Ended
Dec. 31, 2022
Fair Value Disclosures [Abstract]  
Financial Instruments Financial Instruments
A. Fair Value Measurements
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis and Fair Value Hierarchy, using a Market Approach:
As of December 31, 2022As of December 31, 2021
(MILLIONS)TotalLevel 1Level 2TotalLevel 1Level 2
Financial assets:
Short-term investments
Equity securities with readily determinable fair values:
Money market funds$1,588 $— $1,588 $5,365 $— $5,365 
Available-for-sale debt securities:
Government and agency—non-U.S.15,915 — 15,915 17,318 — 17,318 
Government and agency—U.S.1,313 — 1,313 4,050 — 4,050 
Corporate and other1,514 — 1,514 647 — 647 
18,743 — 18,743 22,014 — 22,014 
Total short-term investments20,331 — 20,331 27,379 — 27,379 
Other current assets
Derivative assets:
Interest rate contracts— — — 4 — 4 
Foreign exchange contracts714 — 714 704 — 704 
Total other current assets714 — 714 709 — 709 
Long-term investments
Equity securities with readily determinable fair values(a)
2,836 2,823 13 3,876 3,849 27 
Available-for-sale debt securities:
Government and agency—non-U.S.280 — 280 465 — 465 
Government and agency—U.S.— — — 6 — 6 
Corporate and other72 — 72 50 — 50 
352 — 352 521 — 521 
Total long-term investments3,188 2,823 365 4,397 3,849 548 
Other noncurrent assets
Derivative assets:
Interest rate contracts— — — 16 — 16 
Foreign exchange contracts364 — 364 242 — 242 
Total derivative assets364 — 364 259 — 259 
Insurance contracts(b)
665 — 665 808 — 808 
Total other noncurrent assets1,028 — 1,028 1,067 — 1,067 
Total assets$25,261 $2,823 $22,439 $33,552 $3,849 $29,703 
Financial liabilities:
Other current liabilities
Derivative liabilities:
Interest rate contracts$10 $— $10 $— $— $— 
Foreign exchange contracts694 — 694 476 — 476 
Total other current liabilities704 — 704 476 — 476 
Other noncurrent liabilities
Derivative liabilities:
Interest rate contracts321 — 321 — — — 
Foreign exchange contracts864 — 864 405 — 405 
Total other noncurrent liabilities1,185 — 1,185 405 — 405 
Total liabilities$1,889 $— $1,889 $881 $— $881 
(a)Long-term equity securities of $143 million as of December 31, 2022 and $194 million as of December 31, 2021 were held in restricted trusts for U.S. non-qualified employee benefit plans.
(b)Includes life insurance policies held in restricted trusts for U.S. non-qualified employee benefit plans. The underlying invested assets in these contracts are marketable securities, which are carried at fair value, with changes in fair value recognized in Other (income)/deductions—net (see Note 4).
Financial Assets and Liabilities Not Measured at Fair Value on a Recurring Basis––The carrying value of Long-term debt, excluding the current portion was $33 billion as of December 31, 2022 and $36 billion as of December 31, 2021. The estimated fair value of such debt, using a market approach and Level 2 inputs, was $30 billion as of December 31, 2022 and $42 billion as of December 31, 2021.
The differences between the estimated fair values and carrying values of held-to-maturity debt securities, private equity securities, long-term receivables and short-term borrowings not measured at fair value on a recurring basis were not significant as of December 31, 2022 and 2021. The fair value measurements of our held-to-maturity debt securities and short-term borrowings are based on Level 2 inputs. The fair value measurements of our long-term receivables and private equity securities are based on Level 3 inputs.
B. Investments
Total Short-Term, Long-Term and Equity-Method Investments
The following summarizes our investments by classification type:
As of December 31,
(MILLIONS)20222021
Short-term investments
Equity securities with readily determinable fair values(a)
$1,588 $5,365 
Available-for-sale debt securities18,743 22,014 
Held-to-maturity debt securities1,985 1,746 
Total Short-term investments$22,316 $29,125 
Long-term investments
Equity securities with readily determinable fair values(b)
$2,836 $3,876 
Available-for-sale debt securities352 521 
Held-to-maturity debt securities48 34 
Private equity securities at cost(b)
800 623 
Total Long-term investments
$4,036 $5,054 
Equity-method investments11,033 16,472 
Total long-term investments and equity-method investments
$15,069 $21,526 
Held-to-maturity cash equivalents$679 $268 
(a)Includes money market funds primarily invested in U.S. Treasury and government debt.
(b)Represent investments in the life sciences sector.
Debt Securities
At December 31, 2022, our investment portfolio consisted of debt securities issued across diverse governments, corporate and financial institutions, which are investment-grade. The contractual or estimated maturities, are as follows:
As of December 31, 2022As of December 31, 2021
Gross UnrealizedMaturities (in Years)Gross Unrealized
(MILLIONS)Amortized CostGainsLossesFair ValueWithin 1Over 1
to 5		Over 5Amortized CostGainsLossesFair Value
Available-for-sale debt securities
Government and agency––non-U.S.
$15,946 $297 $(48)$16,195 $15,915 $280 $— $18,032 $13 $(263)$17,783 
Government and agency––U.S.
1,313 — — 1,313 1,313 — — 4,056 — (1)4,055 
Corporate and other1,584 7 (4)1,586 1,514 72 — 698 — (1)697 
Held-to-maturity debt securities
Time deposits and other
1,171 — — 1,171 1,127 20 24 947 — — 947 
Government and agency––non-U.S.
1,542 — — 1,542 1,538 3 1 1,102 — — 1,102 
Total debt securities$21,556 $304 $(53)$21,807 $21,407 $375 $25 $24,835 $14 $(265)$24,584 
Any expected credit losses to these portfolios would be immaterial to our financial statements.
Equity Securities
The following presents the calculation of the portion of unrealized (gains)/losses that relates to equity securities, excluding equity-method investments, held at the reporting date:
Year Ended December 31,
(MILLIONS)202220212020
Net (gains)/losses recognized during the period on equity securities(a)
$1,273 $(1,344)$(540)
Less: Net (gains)/losses recognized during the period on equity securities sold during the period(126)(80)(24)
Net unrealized (gains)/losses during the reporting period on equity securities still held at the reporting date(b)
$1,400 $(1,264)$(515)
(a)Reported in Other (income)/deductions––net. See Note 4.
(b)Included in net unrealized (gains)/losses are observable price changes on equity securities without readily determinable fair values. As of December 31, 2022, there were cumulative impairments and downward adjustments of $193 million and upward adjustments of $203 million. Impairments, downward and upward adjustments were not significant in 2022, 2021 and 2020.
C. Short-Term Borrowings
Short-term borrowings include:
As of December 31,
(MILLIONS)20222021
Current portion of long-term debt, principal amount$2,550 $1,636 
Other short-term borrowings, principal amount(a)
385 605 
Total short-term borrowings, principal amount
2,935 2,241 
Net fair value adjustments10 — 
Total Short-term borrowings, including current portion of long-term debt, carried at historical proceeds, as adjusted
$2,945 $2,241 
(a)Primarily includes cash collateral. See Note 7F.
As of December 31, 2022, we had access to a $7 billion committed U.S. revolving credit facility, which may be used for general corporate purposes including to support our commercial paper borrowings. Lenders under this facility have approximately $700 million of commitments maturing in November 2026 and $6.3 billion of commitments maturing in November 2027. In addition to the U.S. revolving credit facility, our lenders have provided us an additional $321 million in lines of credit, of which $292 million expire within one year. Essentially all lines of credit were unused as of December 31, 2022.
D. Long-Term Debt
The following outlines our senior unsecured long-term debt* and the weighted-average stated interest rate by maturity:
As of December 31,
(MILLIONS)20222021
Notes due 2023 (3.2% for 2021)(a)
$— $2,550 
Notes due 2024 (3.9% for 2022 and 2021)
2,250 2,250 
Notes due 2025 (0.8% for 2022 and 2021)
750 750 
Notes due 2026 (2.9% for 2022 and 2021)
3,000 3,000 
Notes due 2027 (2.1% for 2022 and 2021)
1,000 1,051 
Notes due 2028 (4.8% for 2022 and 2021)
1,660 1,660 
Notes due 2029-2033 (2.6% for 2022 and 2021)
5,000 5,000 
Notes due 2034-2038 (5.5% for 2022 and 2021)
5,517 5,585 
Notes due 2039-2043 (4.8% for 2022 and 4.7% for 2021)
7,153 7,352 
Notes due 2044-2048 (4.2% for 2022 and 2021)
3,250 3,250 
Notes due 2049-2053 (3.4% for 2022 and 2021)
2,500 2,500 
Total long-term debt, principal amount32,080 34,948 
Net fair value adjustments related to hedging and purchase accounting959 1,438 
Net unamortized discounts, premiums and debt issuance costs(175)(195)
Other long-term debt20 4 
Total long-term debt, carried at historical proceeds, as adjusted$32,884 $36,195 
Current portion of long-term debt, carried at historical proceeds, as adjusted (not included above (3.7% for 2022 and 1.0% for 2021))
$2,560 $1,636 
*Our long-term debt is generally redeemable by us at any time at varying redemption prices plus accrued and unpaid interest.
(a)Reclassified to the current portion of long-term debt.
Issuances—In August 2021, we completed a public offering of $1.0 billion principal amount of senior unsecured notes due 2031 at an effective interest rate of 1.79%. In May 2020, we completed a public offering of $4.0 billion aggregate principal amount of senior unsecured notes with a weighted-average effective interest rate of 2.11% and in March 2020, we completed a public offering of $1.25 billion aggregate principal amount of senior unsecured notes with a weighted-average effective interest rate of 2.67%.
Retirements—In November 2020, we repurchased all $1.15 billion and $342 million principal amount outstanding of the 1.95% senior unsecured notes that were due in June 2021 and 5.80% senior unsecured notes that were due in August 2023 and recorded a total net loss of $36 million in Other (income)/deductions––net. See Note 2B. In March 2020, we repurchased at par all $1.065 billion principal amount outstanding of our senior unsecured notes due in 2047.
E. Derivative Financial Instruments and Hedging Activities
Foreign Exchange Risk––A significant portion of our revenues, earnings and net investments in foreign affiliates is exposed to changes in foreign exchange rates. Where foreign exchange risk is not offset by other exposures, we manage our foreign exchange risk principally through the use of derivative financial instruments and foreign currency debt. These financial instruments serve to mitigate the impact on net income as a result of remeasurement into another currency, or against the impact of translation into U.S. dollars of certain foreign exchange-denominated transactions.
The derivative financial instruments primarily hedge or offset exposures in the euro, U.K. pound, Japanese yen, and Canadian dollar, and include a portion of our forecasted foreign exchange-denominated intercompany inventory sales hedged up to two years. We may seek to protect against possible declines in the reported net investments of our foreign business entities.
Changes in fair value are reported in earnings or in Other comprehensive income/(loss), depending on the nature and purpose of the financial instrument (hedge or offset relationship). For certain foreign exchange contracts, we exclude an amount from the assessment of hedge effectiveness and recognize the excluded amount through an amortization approach in earnings. The hedge relationships are as follows:
•Generally, we recognize the gains and losses on foreign exchange contracts that are designated as fair value hedges in earnings upon the recognition of the change in fair value of the hedged item. We also recognize the offsetting foreign exchange impact attributable to the hedged item in earnings.
•Generally, we record in Other comprehensive income/(loss) gains or losses on foreign exchange contracts that are designated as cash flow hedges and reclassify those amounts into earnings in the same period or periods during which the hedged transaction affects earnings.
•We record in Other comprehensive income/(loss) ––Foreign currency translation adjustments, net the foreign exchange gains and losses related to foreign exchange-denominated debt and foreign exchange contracts designated as a hedge of our net investments in foreign subsidiaries and reclassify those amounts into earnings upon the sale or substantial liquidation of our net investments.
•For foreign exchange contracts not designated as hedging instruments, we recognize the gains and losses immediately into earnings along with the earnings impact of the items they generally offset. These contracts take the opposite currency position of that reflected on the balance sheet to counterbalance the effect of any currency movement.
Interest Rate Risk––Our interest-bearing investments and borrowings are subject to interest rate risk. Depending on market conditions, we may change the profile of our outstanding debt or investments by entering into derivative financial instruments like interest rate swaps, either to hedge or offset the exposure to changes in the fair value of hedged items with fixed interest rates, or to convert variable rate debt or investments to fixed rates. The derivative financial instruments primarily hedge U.S. dollar fixed-rate debt.
We recognize the change in fair value on interest rate contracts that are designated as fair value hedges in earnings, as well as the offsetting earnings impact of the hedged risk attributable to the hedged item.
The following summarizes the fair value of the derivative financial instruments and notional amounts:
(MILLIONS)
As of December 31, 2022
As of December 31, 2021
Fair ValueFair Value
NotionalAssetLiabilityNotionalAssetLiability
Derivatives designated as hedging instruments:
Foreign exchange contracts(a)
$26,603 $838 $1,196 $29,576 $787 $717 
Interest rate contracts
2,250 — 331 2,250 21 — 
838 1,527 808 717 
Derivatives not designated as hedging instruments:
Foreign exchange contracts
$29,814 240 362 $21,419 160 164 
Total$1,078 $1,889 $968 $881 
(a)The notional amount of outstanding foreign exchange contracts hedging our intercompany forecasted inventory sales was $4.4 billion as of December 31, 2022 and $4.8 billion as of December 31, 2021.
The following summarizes information about the gains/(losses) incurred to hedge or offset operational foreign exchange or interest rate risk exposures:
 

Gains/(Losses)
Recognized in OID(a)
Gains/(Losses)
Recognized in OCI(a)
Gains/(Losses)
Reclassified from
OCI into OID and COS(a)
Year Ended December 31,
(MILLIONS)202220212022202120222021
Derivative Financial Instruments in Cash Flow Hedge Relationships:
      
Foreign exchange contracts(b)
$— $— $1,296 $488 $1,916 $(173)
Amount excluded from effectiveness testing and amortized into earnings(c)
— — 148 38 145 38 
Derivative Financial Instruments in Fair Value Hedge Relationships:
Interest rate contracts
(337)(7)— — — — 
Hedged item
337 7 — — — — 
Derivative Financial Instruments in Net Investment Hedge Relationships:
Foreign exchange contracts— — 816 468 — — 
Amount excluded from effectiveness testing and amortized into earnings(c)
— — 73 52 129 109 
Non-Derivative Financial Instruments in Net Investment Hedge Relationships:(d)
Foreign currency short-term borrowings— — 26 78 — — 
Foreign currency long-term debt— — 51 86 — — 
Derivative Financial Instruments Not Designated as Hedges:
Foreign exchange contracts(1,153)(192)— — — — 
All other net(c)
— — — 1 — 1 
$(1,153)$(192)$2,409 $1,210 $2,190 $(25)
(a)OID = Other (income)/deductions—net, included in Other (income)/deductions—net in the consolidated statements of income. COS = Cost of Sales, included in Cost of sales in the consolidated statements of income. OCI = Other comprehensive income/(loss), included in the consolidated statements of comprehensive income.
(b)The amounts reclassified from OCI into COS were a net gain of $375 million in 2022 and a net loss of $89 million in 2021. The remaining amounts were reclassified from OCI into OID. Based on year-end foreign exchange rates that are subject to change, we expect to reclassify a pre-tax loss of $107 million within the next 12 months into income. The maximum length of time over which we are hedging our exposure to the variability in future foreign exchange cash flows is approximately 20 years and relates to foreign currency debt.
(c)The amounts reclassified from OCI were reclassified into OID.
(d)Short-term borrowings and long-term debt include foreign currency borrowings which are used as net investment hedges. The short-term borrowings’ carrying value as of December 31, 2021 was $1.1 billion. The long-term debt carrying values as of December 31, 2022 and December 31, 2021 were $795 million and $844 million, respectively.
The following summarizes cumulative basis adjustments to our long-term debt in fair value hedges:
As of December 31, 2022
As of December 31, 2021
Cumulative Amount of Fair
Value Hedging Adjustment
Increase/(Decrease) to
Carrying Amount		Cumulative Amount of Fair
Value Hedging Adjustment Increase/(Decrease) to
Carrying Amount
(MILLIONS)
Carrying Amount of Hedged Assets/Liabilities(a)
Active
Hedging
Relationships		Discontinued Hedging Relationships
Carrying Amount of Hedged Assets/Liabilities(a)
Active Hedging RelationshipsDiscontinued Hedging Relationships
Short-term borrowings, including current portion of long-term debt$— $— $10 $— $— $— 
Long-term debt$2,235 $(321)$1,042 $2,233 $16 $1,154 
(a)Carrying amounts exclude the cumulative amount of fair value hedging adjustments.
F. Credit Risk
On an ongoing basis, we monitor and review the credit risk of our customers, financial institutions and exposures in our investment portfolio.
With respect to our trade accounts receivable, we monitor the creditworthiness of our customers to which we grant credit in the normal course of business. In general, there is no requirement for collateral from customers. For additional information on our trade accounts receivable and
allowance for credit losses, see Note 1G. A significant portion of our trade accounts receivable balances are due from wholesalers and governments. For additional information on our trade accounts receivables with significant customers, see Note 17C.
With respect to our investments, we monitor concentrations of credit risk associated with government, government agency, and corporate issuers of securities. Investments are placed in instruments that are investment grade and are primarily short in duration. Exposure limits are established to limit a concentration with any single credit counterparty. As of December 31, 2022, the largest investment exposures in our portfolio represent primarily sovereign debt instruments issued by the Netherlands, Canada, Germany, Japan, the U.K., the U.S., and France.
With respect to our derivative financial instrument agreements with financial institutions, we do not expect to incur a significant loss from failure of any counterparty. Derivative financial instruments are executed under International Swaps and Derivatives Association master agreements with credit-support annexes that contain zero threshold provisions requiring collateral to be exchanged daily depending on levels of exposure. As a result, there are no significant concentrations of credit risk with any individual financial institution. As of December 31, 2022, the aggregate fair value of these derivative financial instruments that are in a net payable position was $888 million, for which we have posted collateral of $901 million with a corresponding amount reported in Short-term investments. As of December 31, 2022, the aggregate fair value of our derivative financial instruments that are in a net receivable position was $435 million, for which we have received collateral of $337 million with a corresponding amount reported in Short-term borrowings, including current portion of long-term debt.
v3.22.4
Other Financial Information
 12 Months Ended
Dec. 31, 2022
Other Financial Information [Abstract]  
Other Financial Information Other Financial Information
A. Inventories
The following summarizes the components of Inventories:
As of December 31,
(MILLIONS)20222021
Finished goods$2,603 $3,641 
Work-in-process5,519 4,424 
Raw materials and supplies859 994 
Inventories(a)
$8,981 $9,059 
Noncurrent inventories not included above(b)
$5,827 $939 
(a)The decrease from December 31, 2021 reflects lower levels of Comirnaty, partially offset by new products acquired through recent acquisitions and higher Paxlovid inventory levels.
(b)Included in Other noncurrent assets. The increase from December 31, 2021 is primarily due to strategic inventory build related to Paxlovid. Based on our current estimates and assumptions, there are no recoverability issues for these amounts.
B. Other Current Liabilities
Other current liabilities includes, among other things, amounts payable to BioNTech for the gross profit split for Comirnaty, which totaled $5.2 billion as of December 31, 2022 and $9.7 billion as of December 31, 2021.
v3.22.4
Property, Plant and Equipment (PP&E)
 12 Months Ended
Dec. 31, 2022
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment (PP&E) Property, Plant and Equipment (PP&E)
The following summarizes the components of Property, plant and equipment:
 Useful LivesAs of December 31,
(MILLIONS)(Years)  20222021
Land-$368 $423 
Buildings
33-50
8,832 9,001 
Machinery and equipment
8-20
12,881 12,252 
Furniture, fixtures and other
3-12.5
4,491 4,457 
Construction in progress-4,875 3,822 
31,448 29,955 
Less: Accumulated depreciation15,174 15,074 
Property, plant and equipment$16,274 $14,882 
The following provides long-lived assets by geographic area:
 As of December 31,
(MILLIONS)20222021
United States$9,179 $8,385 
Developed Europe5,389 5,094 
Developed Rest of World293 347 
Emerging Markets1,413 1,056 
Property, plant and equipment$16,274 $14,882 
v3.22.4
Identifiable Intangible Assets and Goodwill
 12 Months Ended
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Identifiable Intangible Assets and Goodwill Identifiable Intangible Assets and Goodwill
A. Identifiable Intangible Assets
The following summarizes the components of Identifiable intangible assets:
 As of December 31, 2022As of December 31, 2021
(MILLIONS)Gross
Carrying
Amount		Accumulated
Amortization		Identifiable
Intangible
Assets, less
Accumulated
Amortization		Gross
Carrying
Amount		Accumulated
Amortization		Identifiable
Intangible
Assets, less
Accumulated
Amortization
Finite-lived intangible assets
Developed technology rights(a)
$85,604 $(56,307)$29,297 $73,346 $(53,732)$19,614 
Brands922 (844)78 922 (807)115 
Licensing agreements and other2,237 (1,397)841 2,284 (1,299)985 
88,763 (58,548)30,215 76,552 (55,838)20,714 
Indefinite-lived intangible assets
Brands827 827 827 827 
IPR&D(b)
11,357 11,357 3,092 3,092 
Licensing agreements and other(b)
971 971 513 513 
13,155 13,155 4,432 4,432 
Identifiable intangible assets(c)
$101,919 $(58,548)$43,370 $80,984 $(55,838)$25,146 
(a)The increase in the gross carrying amounts mainly reflect the impact of the acquisitions of Biohaven and GBT (see Note 2A).
(b)The increase in the gross carrying amounts mainly reflect the impact of the acquisitions of Arena, GBT and Biohaven (see Note 2A), and for IPR&D, is partially offset by an impairment (see Note 4).
(c)The increase is primarily due to acquisitions (see Note 2A), partially offset by amortization expense.
Developed Technology Rights––Developed technology rights represent the cost for developed technology acquired from third parties and can include the right to develop, use, market, sell and/or offer for sale the product, compounds and intellectual property that we have acquired with respect to products, compounds and/or processes that have been completed. We possess a well-diversified portfolio of hundreds of developed technology rights across therapeutic categories, representing our commercialized products. The significant components of developed technology rights are the following: Nurtec ODT/Vydura, Xtandi, Prevnar family, Braftovi/Mektovi, Oxbryta, Premarin, Eucrisa, Orgovyx, Zavicefta, Bavencio and Merrem/Meronem. Also included in this category are the post-approval milestone payments made under our alliance agreements for certain prescription pharmaceutical products.
Brands––Brands represent the cost for tradenames and know-how, as the products themselves do not receive patent protection. Indefinite-lived brands include Medrol and Depo-Medrol, while finite-lived brands include Zavedos and Depo-Provera.
IPR&D––IPR&D assets represent R&D assets acquired through business combinations that have not yet received regulatory approval in a major market. The significant components of IPR&D are etrasimod, GBT601, talazoparib, Braftovi/Mektovi and zavegepant. IPR&D assets are required to be classified as indefinite-lived assets until the successful completion or the abandonment of the associated R&D effort. Accordingly, during the development period after the date of acquisition, these assets are not amortized until approval is obtained in a major market, typically either the U.S. or the EU, or in a series of other countries, subject to certain specified conditions and management judgment. At that time, we will determine the useful life of the asset, reclassify it out of IPR&D and begin amortization. If the associated R&D effort is abandoned, the related IPR&D assets will be written-off, and we will record an impairment charge. IPR&D assets are high-risk assets, given the uncertain nature of R&D. Accordingly, IPR&D assets may become impaired and/or be written-off in the future.
Licensing Agreements––Licensing agreements for developed technology and for technology in development primarily relate to out-licensing arrangements acquired from third parties, including the Array and Arena acquisition. These assets represent the cost for the license, where we acquired the right to future royalties and/or milestones upon development or commercialization by the licensing partner. A significant component of the licensing arrangements are for out-licensing arrangements with a number of partners for oncology technology in varying stages of development that have not yet received regulatory approval in a major market. Accordingly, during the development period after the date of acquisition, each of these assets is classified as indefinite-lived intangible assets and will not be amortized until approval is obtained in a major market. At that time we will determine the useful life of the asset, reclassify the respective licensing arrangement asset to finite-lived intangible asset and begin amortization. If the development effort is abandoned, the related licensing asset will be written-off, and we will record an impairment charge.
Amortization––The weighted-average life for each of our total finite-lived intangible assets is approximately 9 years, and for the largest component, developed technology rights, is approximately 8 years. Total amortization expense for finite-lived intangible assets was $3.6 billion in 2022, $3.7 billion in 2021 and $3.4 billion in 2020.
The following provides the expected annual amortization expense:
(MILLIONS)20232024202520262027
Amortization expense$4,223 $3,981 $3,780 $3,714 $3,503 
B. Goodwill
The following summarizes the changes in the carrying amount of Goodwill:
(MILLIONS)
Total(a)
Balance, January 1, 2021
$49,556 
Additions— 
Impact of foreign exchange(348)
Balance, December 31, 2021
49,208 
Additions(b)
2,917 
Impact of foreign exchange(750)
Balance, December 31, 2022
$51,375 
(a)As a result of the organizational changes to the commercial structure within the Biopharma operating segment effective in the third quarter of 2022 (see Note 1A), our goodwill was required to be reallocated amongst impacted reporting units. The allocation of goodwill is a complex process that requires, among other things, that we determine the fair value of each reporting unit under our old and new organizational structure and the portions being transferred. We completed this re-allocation during the fourth quarter 2022 and concluded that none of our goodwill was impaired. Our goodwill balance continues to be assigned within the Biopharma reportable segment.
(b)Additions relate to our acquisitions of GBT, Arena and Biohaven. See Note 2A.
v3.22.4
Pension and Postretirement Benefit Plans and Defined Contribution Plans
 12 Months Ended
Dec. 31, 2022
Retirement Benefits [Abstract]  
Pension and Postretirement Benefit Plans and Defined Contribution Plans Pension and Postretirement Benefit Plans and Defined Contribution Plans
The majority of our employees worldwide are eligible for retirement benefits provided through defined benefit pension plans, defined contribution plans or both. In the U.S., we sponsor both IRC-qualified and supplemental (non-qualified) defined benefit plans and defined contribution plans. A qualified plan meets the requirements of certain sections of the IRC, and, generally, contributions to qualified plans are tax deductible. A qualified plan typically provides benefits to a broad group of employees with restrictions on discriminating in favor of highly compensated employees with regard to coverage, benefits and contributions. A supplemental (non-qualified) plan provides additional benefits to certain employees. In addition, we provide medical insurance benefits to certain retirees and their eligible dependents through our postretirement plans.
A. Components of Net Periodic Benefit Costs and Changes in Other Comprehensive Income/(Loss)
The following summarizes the components of net periodic benefit cost/(credit), including those reported as part of discontinued operations for 2020, and the changes in Other comprehensive income/(loss) for our benefit plans:
Pension Plans Postretirement Plans
U.S.International
Year Ended December 31,
(MILLIONS)202220212020202220212020202220212020
Service cost$— $— $— $116 $130 $146 $29 $36 $38 
Interest cost534 455 533 157 146 164 27 29 49 
Expected return on plan assets
(862)(1,052)(1,015)(296)(327)(314)(47)(39)(36)
Amortization of prior service cost/(credit)2 (2)(3)(1)(1)(3)(130)(151)(170)
Actuarial (gains)/losses(a)
225 (684)1,152 (11)(690)148 (440)(167)(165)
Curtailments— — — (11)(4)— (18)(82)— 
Special termination benefits
18 17 1 1 — — 1 2 — 
Net periodic benefit cost/(credit) reported in income(84)(1,265)668 (45)(746)141 (578)(372)(282)
Cost/(credit) reported in Other comprehensive income/(loss)
(2)2 5 (1)4 5 169 107 114 
Cost/(credit) recognized in Comprehensive income
$(86)$(1,264)$674 $(46)$(742)$145 $(410)$(265)$(168)
(a)Reflects: (i) actuarial remeasurement net gains in 2022, primarily due to increases in discount rates, partially offset by unfavorable plan asset performance, (ii) actuarial remeasurement gains in 2021, primarily due to favorable plan asset performance and increases in discount rates, and (iii) actuarial remeasurement net losses in 2020, primarily due to decreases in discount rates partially offset by favorable plan asset performance.
The components of net periodic benefit cost/(credit) other than the service cost component are primarily included in Other (income)/deductions––net (see Note 4).
B. Actuarial Assumptions
Pension PlansPostretirement Plans
U.S.International
Year Ended December 31,
(PERCENTAGES)202220212020202220212020202220212020
Weighted-average assumptions used to determine net periodic benefit cost:
Discount rate:
Pension plans/postretirement plans2.9 %2.6 %3.3 %2.9 %2.5 %3.2 %
Interest cost1.5 %1.2 %1.5 %
Service cost1.7 %1.4 %1.6 %
Expected return on plan assets6.3 %6.8 %7.0 %3.1 %3.4 %3.6 %6.3 %6.8 %7.0 %
Rate of compensation increase(a)
2.8 %2.9 %2.9 %
Weighted-average assumptions used to determine benefit obligations at fiscal year-end:
Discount rate5.4 %2.9 %2.6 %3.8 %1.6 %1.5 %5.5 %2.9 %2.5 %
Rate of compensation increase(a)
3.0 %2.8 %2.9 %
(a)The rate of compensation increase is not used to determine the net periodic benefit cost and benefit obligation for the U.S. pension plans as these plans are frozen.
All of the assumptions are reviewed at least annually. We revise these assumptions based on an annual evaluation of long-term trends as well as market conditions that may have an impact on the cost of providing retirement benefits.
The weighted-average discount rate for our U.S. defined benefit plans is set with reference to the prevailing market rate of a portfolio of high-quality fixed income investments, rated AA/Aa or better that reflect the rates at which the pension benefits could be effectively settled. For our international plans, the discount rates are set by benchmarking against investment grade corporate bonds rated AA/Aa or better, including, when there is sufficient data, a yield curve approach. These rate determinations are made consistent with local requirements. Overall, the yield curves used to measure the benefit obligations at year-end 2022 resulted in substantially higher discount rates as compared to the prior year.
The following provides the healthcare cost trend rate assumptions for our U.S. postretirement benefit plans:
As of December 31,
20222021
Healthcare cost trend rate assumed for next year 6.4 %6.0 %
Rate to which the cost trend rate is assumed to decline4.0 %4.0 %
Year that the rate reaches the ultimate trend rate2045 2045 
C. Obligations and Funded Status
The following provides: (i) an analysis of the changes in our benefit obligations, plan assets and funded status of our benefit plans, (ii) the funded status recognized in our consolidated balance sheets and (iii) the pre-tax components of cumulative amounts recognized in Accumulated other comprehensive loss:
 Pension Plans Postretirement Plans
 U.S. International
Year Ended December 31,
(MILLIONS)202220212022202120222021
Change in benefit obligation(a)
Benefit obligation, beginning$17,150 $18,306 $11,657 $12,001 $995 $1,238 
Service cost— — 116 130 29 36 
Interest cost534 455 157 146 27 29 
Employee contributions— — 9 10 75 78 
Plan amendments— — — — 24 (116)
Changes in actuarial assumptions and other(b)
(4,187)(331)(2,931)89 (593)(117)
Foreign exchange impact(1)— (1,065)(298)(5)1 
Upjohn spin-off(c)
— — 37 3 — — 
Acquisitions/divestitures, net61 — (50)— — — 
Curtailments and special termination benefits18 17 (10)(2)(3)(8)
Settlements(d)
(1,698)(785)(64)(47)(39)— 
Benefits paid(457)(512)(359)(374)(101)(147)
Benefit obligation, ending(a)
11,420 17,150 7,497 11,657 410 995 
Change in plan assets
Fair value of plan assets, beginning
16,346 16,094 10,729 9,811 753 588 
Actual return on plan assets(3,550)1,405 (2,624)1,106 (106)89 
Company contributions230 143 156 451 65 145 
Employee contributions— — 9 10 75 78 
Foreign exchange impact— — (1,037)(229)— — 
Upjohn spin-off(c)
— — 45 2 — — 
Acquisitions/divestitures, net1 — 9 — — — 
Settlements(d)
(1,698)(785)(64)(47)(39)— 
Benefits paid(457)(512)(359)(374)(101)(147)
Fair value of plan assets, ending10,871 16,346 6,865 10,729 647 753 
Funded status$(549)$(805)$(632)$(928)$238 $(241)
Amounts recorded in our consolidated balance sheet:
Noncurrent assets$346 $447 $783 $1,480 $322 $— 
Current liabilities(110)(138)(27)(33)(6)(6)
Noncurrent liabilities(785)(1,113)(1,388)(2,376)(78)(235)
Funded status$(549)$(805)$(632)$(928)$238 $(241)
Pre-tax components of cumulative amounts recognized in Accumulated other comprehensive loss:
Prior service (costs)/credits$(4)$(6)$(34)$(35)$413 $581 
Information related to the funded status of pension plans with an ABO in excess of plan assets(e):
Fair value of plan assets
$86 $120 $343 $1,304 
ABO981 1,371 1,600 3,344 
Information related to the funded status of pension plans with a PBO in excess of plan assets(e):
Fair value of plan assets$86 $120 $1,081 $1,381 
PBO981 1,371 2,496 3,789 
(a)For the U.S. pension plans, the benefit obligation is both the PBO and ABO as these plans are frozen and future benefit accruals no longer increase with future compensation increases. For the international pension plans, the benefit obligation is the PBO. The ABO for our international pension plans was $7.2 billion in 2022 and $11.2 billion in 2021. For the postretirement plans, the benefit obligation is the ABO.
(b)For both 2022 and 2021, primarily includes actuarial gains resulting from increases in discount rates, offset by increases in inflation assumptions for the international plan.
(c)For more information, see Note 2B.
(d)As a result of a group annuity contract entered into between Pfizer and a third party insurance company in July 2022, the third party insurance company assumed future benefit obligations and responsibility for the annuity payments of certain retirees in the Pfizer Consolidated Pension Plan. As of December 31, 2022, $586 million of benefit obligations and $588 million of plan assets are associated with this contract. We expect to finalize the remaining regulatory approvals for this transaction in due course.
(e)Our main U.S. qualified plan, U.S. postretirement plan and many of our international plans were overfunded as of December 31, 2022.
D. Plan Assets
The following provides the components of plan assets:
As of December 31, 2022As of December 31, 2021
    Fair ValueFair Value
(MILLIONS EXCEPT TARGET ALLOCATION PERCENTAGE)Target Allocation PercentageTotalLevel 1Level
2		Level 3
Assets Measured at NAV(a)
TotalLevel 1Level
 2		Level 3
Assets Measured at NAV(a)
U.S. pension plans
Cash and cash equivalents0-10%$828 $49 $779 $— $— $1,326 $78 $1,248 $— $— 
Equity securities:20-40%
Global equity securities1,555 1,553 1 1 — 2,273 2,233 38 2 — 
Equity commingled funds165 — 165 — — 1,352 — 1,152 — 200 
Fixed income securities:45-75%
Corporate debt securities3,512 5 3,507 — — 5,566 18 5,548 — — 
Government and agency obligations(b)
1,772 — 1,772 — — 2,533 — 2,533 — — 
Fixed income commingled funds16 — 16 — — 38 — 38 — — 
Other investments:5-20%
Partnership investments(c)
2,152 — — — 2,152 2,079 3 — — 2,076 
Insurance contracts116 — 116 — — 158 — 158 — — 
Other commingled funds(d)
756 — — — 756 1,019 — 10 — 1,009 
Total100 %$10,871 $1,607 $6,355 $1 $2,908 $16,346 $2,332 $10,726 $2 $3,286 
International pension plans
Cash and cash equivalents0-10%$221 $58 $163 $— $— $541 $191 $346 $— $3 
Equity securities:10-20%
Equity commingled funds714 — 672 — 42 1,453 — 1,386 — 67 
Fixed income securities:45-70%
Corporate debt securities569 — 569 — — 1,187 — 1,187 — — 
Government and agency obligations(b)
862 — 862 — — 2,415 — 2,415 — — 
Fixed income commingled funds2,053 — 1,045 — 1,008 2,266 — 1,138 — 1,128 
Other investments:15-35%
Partnership investments(c)
128 — 1 — 126 107 — 2 — 106 
Insurance contracts1,197 — 54 1,143 — 1,329 — 56 1,273 — 
Other(d)
1,122 — 133 312 677 1,431 — 141 404 886 
Total100 %$6,865 $58 $3,498 $1,455 $1,853 $10,729 $191 $6,672 $1,677 $2,189 
U.S. postretirement plans(e)
Cash and cash equivalents0-5%$97 $1 $96 $— $— $85 $3 $82 $— $— 
Insurance contracts95-100%551 — 551 — — 669 — 669 — — 
Total100 %$647 $1 $646 $— $— $753 $3 $750 $— $— 
(a)Certain investments that are measured at NAV per share (or its equivalent) have not been classified in the fair value hierarchy. The NAV amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented for the total pension benefits plan assets.
(b)Government and agency obligations are inclusive of repurchase agreements.
(c)Mainly includes investments in private equity, private debt, public equity limited partnerships, and, to a lesser extent, real estate and venture capital.
(d)Mostly includes investments in hedge funds and real estate.
(e)Reflects postretirement plan assets, which support a portion of our U.S. retiree medical plans.
The following provides an analysis of the changes in our more significant investments valued using significant unobservable inputs:
International Pension Plans
Year Ended December 31,
(MILLIONS)20222021
Fair value, beginning$1,677 $1,362 
Actual return on plan assets:
Assets held, ending(177)23 
Assets sold during the period4 — 
Purchases, sales, and settlements, net
(129)52 
Transfer into/(out of) Level 3241 265 
Exchange rate changes(161)(24)
Fair value, ending$1,455 $1,677 
The following methods and assumptions were used to estimate the fair value of our pension and postretirement plans’ assets:
•Cash and cash equivalents: Level 1 investments may include cash, cash equivalents and foreign currency valued using exchange rates. Level 2 investments may include short-term investment funds which are commingled funds priced at a stable NAV by the administrator of the funds.
•Equity securities: Level 1 investments may include individual securities that are valued at the closing price or last trade reported on the major market on which they are traded. Level 1 and Level 2 investments may include commingled funds that have a readily determinable fair value based on quoted prices on an exchange or a published NAV derived from the quoted prices in active markets of the underlying securities. Level 3 investments may include individual securities that are unlisted, delisted, suspended, or illiquid and are typically valued using their last available price.
•Fixed income securities: Level 1 investments may include individual securities that are valued at the closing price or last trade reported on the major market on which they are traded. Level 2 investments may include commingled funds that have a readily determinable fair value based on observable prices of the underlying securities. Level 2 investments may include corporate bonds, government and government agency obligations and other fixed income securities valued using bid evaluation pricing models or quoted prices of securities with similar characteristics. Level 3 investments may include securities that are valued using alternative pricing sources, such as investment managers or brokers, which use proprietary pricing models that incorporate unobservable inputs.
•Other investments: Level 1 investments may include individual securities that are valued at the closing price or last trade reported on the major market on which they are traded. Level 2 investments may include insurance contracts which invest in interest bearing cash, U.S. government securities and corporate debt instruments. Level 3 investments may include securities or insurance contracts that are valued using alternative pricing sources, such as investment managers or brokers, which use proprietary pricing models that incorporate unobservable inputs.
Equity securities, Fixed income securities and Other investments may each be combined into commingled funds. Most commingled funds are valued to reflect the interest in the fund based on the reported year-end NAV. Partnership and Other investments are valued based on year-end reported NAV (or its equivalent), with adjustments as appropriate for lagged reporting of up to three months.
Certain investments are authorized to include derivatives, such as equity or bond futures, swaps, options and currency futures or forwards for managing risks and exposures.
Global plan assets are managed with the objective of generating returns that will enable the plans to meet their future obligations, while seeking to manage net periodic benefit costs and cash contributions over the long-term. We utilize long-term asset allocation ranges in the management of our plans’ invested assets. Our long-term return expectations are developed based on a diversified, global investment strategy that takes into account historical experience, as well as the impact of portfolio diversification, active portfolio management, and our view of current and future economic and financial market conditions. As market conditions and other factors change, we may adjust our targets accordingly and our asset allocations may vary from the target allocations.
E. Cash Flows
It is our practice to fund amounts for our qualified pension plans that are at least sufficient to meet the minimum requirements set forth in applicable employee benefit laws and local tax laws.
The following provides the expected future cash flow information related to our benefit plans:
  Pension PlansPostretirement Plans
(MILLIONS)U.S.International
Expected employer contributions:
2023(a)
$111 $147 $(53)
Expected benefit payments:
2023$982 $364 $42 
2024947 365 43 
2025920 372 44 
2026901 379 44 
2027885 392 43 
2028–20324,218 2,069 192 
(a)For the U.S. postretirement plan, the IRC 401(h) and voluntary employees’ beneficiary association reimbursements totaling $95 million are expected to exceed expected employer contributions.
The above table reflects the total U.S. and international plan benefits projected to be paid from the plans or from our general assets under the current actuarial assumptions used for the calculation of the benefit obligation.
F. Defined Contribution Plans
We have defined contribution plans in the U.S. and other countries. For the majority of the U.S. defined contribution plans, employees may contribute a portion of their salaries and bonuses to the plans, and we match, in cash, a portion of the employee contributions. We also offer a Retirement Savings Contribution (RSC) which is an annual non-contributory employer contribution in the U.S. and Puerto Rico. We recorded charges related to the employer contributions to global defined contribution plans of $770 million in 2022, $732 million in 2021 and $685 million in 2020.
v3.22.4
Equity
 12 Months Ended
Dec. 31, 2022
Equity [Abstract]  
Equity Equity
A. Common Stock Purchases
We purchase our common stock through privately negotiated transactions or in the open market as circumstances and prices warrant. Purchased shares under a share-purchase plan, which is authorized by our BOD, are available for general corporate purposes. In December 2018, the BOD authorized a $10 billion share repurchase program to be utilized over time and share repurchases commenced thereunder in the first quarter of 2019.
In the first quarter of 2022, we purchased 39 million shares of our common stock at a cost of $2 billion under our publicly announced share purchase plan. Our remaining share-purchase authorization was approximately $3.3 billion at December 31, 2022.
B. Preferred Stock and Employee Stock Ownership Plans
Prior to May 4, 2020, we had outstanding Series A convertible perpetual preferred stock (the Series A Preferred Stock) that was held by an ESOP trust (the Trust). All outstanding shares of Series A Preferred Stock were converted, at the direction of the independent fiduciary under the Trust and in accordance with the certificate of designations for the Series A Preferred Stock, into shares of our common stock on May 4, 2020. The Trust received an aggregate of 1,070,369 shares of our common stock upon conversion, with zero shares of Series A Preferred Stock remaining outstanding as a result of the conversion. In December 2020, we filed a certificate of elimination to our restated certificate of incorporation, as amended and a restated certificate of incorporation with the Delaware Secretary of State, which eliminated the Series A Preferred Stock.
We have one ESOP that holds common stock of the Company (Common ESOP). As of December 31, 2022, all shares of common stock held by the Common ESOP have been allocated to the Pfizer U.S. defined contribution plan participants. The compensation cost related to the Common ESOP was $19 million for each of 2022, 2021 and 2020.
v3.22.4
Share-Based Payments
 12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Share-Based Payments Share-Based Payments
Our compensation programs can include share-based payment awards with value that is determined by reference to the fair value of our shares and that provide for the grant of shares or options to acquire shares or similar arrangements. Our share-based awards are designed based on competitive survey data or industry peer groups used for compensation purposes, and are allocated between different long-term incentive awards, generally in the form of Total Shareholder Return Units (TSRUs), Restricted Stock Units (RSUs), Portfolio Performance Shares (PPSs), Performance Share Awards (PSAs), Breakthrough Performance Awards (BPAs) and stock options, as determined by the Compensation Committee of our BOD.
The 2019 Stock Plan (2019 Plan) replaced and superseded the 2014 Plan. It provides for 400 million shares, in addition to shares remaining under the 2014 Plan, to be authorized for grants. As of December 31, 2022, no shares remain under the 2014 Plan. The 2019 Plan provides that the number of stock options, TSRUs, RSUs, or performance-based awards that may be granted to any one individual during any 36-month period is limited to 20 million shares, and that RSUs count as three shares, PPSs, PSAs and BPAs count as three shares times the maximum potential payout, while TSRUs and stock options count as one share, toward the maximum shares available under the 2019 Plan. As of December 31, 2022, 270 million shares were available for award, including 27 million shares that we assumed from the remaining shares available from the stock plans of GBT, Arena and Biohaven which can be issued to legacy employees of the acquired companies and newly hired employees after the dates of the respective acquisitions. Although not required to do so, we have used authorized and unissued shares and, to a lesser extent, treasury stock to satisfy our obligations under these programs.
A summary of the awards and valuation details:
Awarded toTermsValuationRecognition and Presentation
Total Shareholder Return Units (TSRUs)(a), (b)
Senior and other key management and select employees
•Entitle the holder to receive shares of our common stock with a value equal to the difference between the defined settlement price and the grant price, plus the dividend equivalents accumulated during the five or seven-year term, if and to the extent the total value is positive.
•Settlement price is the average closing price of our common stock during the 20 trading days ending on the fifth or seventh anniversary of the grant, as applicable; the grant price is the closing price of our common stock on the date of the grant.
•Automatically settle on the fifth or seventh anniversary of the grant but vest on the third anniversary of the grant.
As of the grant date using a Monte Carlo simulation model
Amortized on a straight-line basis over the vesting term into Cost of sales, Selling, informational and administrative expenses, and/or Research and development expenses, as appropriate.
Restricted Stock Units (RSUs)
Select employees
•Entitle the holder to receive a specified number of shares of our common stock, including dividend equivalents that are reinvested into additional RSUs.
•For RSUs granted before 2022, generally in all instances, the units vest on the third anniversary of the grant date assuming continuous service from the grant date. Beginning in 2022, generally in all instances, the units vest and distribute one-third per year for three years on each of the three annual anniversaries from the date of grant assuming continuous service from the grant date.
As of the grant date using the closing price of our common stock
Amortized on a straight-line basis for RSUs granted before 2022, and on an accelerated attribution approach for RSUs granted in 2022, over the vesting term into Cost of sales, Selling, informational and administrative expenses, and/or Research and development expenses, as appropriate.
Portfolio Performance Shares (PPSs)
Select employees
•Entitle the holder to receive, at the end of the performance period, shares of our common stock, if any, including shares resulting from dividend equivalents earned on such shares.
•For PPSs granted, the awards vest on the third anniversary of the grant assuming continuous service from the grant date and the number of shares paid, if any, depends on the achievement of predetermined goals related to Pfizer’s long-term product portfolio during a three or five-year performance period from the year of the grant date, as applicable.
•The number of shares that may be earned ranges from 0% to 200% of the initial award depending on goal achievement over the performance period.
As of the grant date using the intrinsic value method using the closing price of our common stock
Amortized on a straight-line basis over the vesting term into Cost of sales, Selling, informational and administrative expenses and/or Research and development expenses, as appropriate, and adjusted each reporting period, as necessary, to reflect changes in the price of our common stock, the number of shares that are probable of being earned, and management’s assessment of the probability that the specified performance criteria will be achieved.
Performance Share Awards (PSAs)
Senior and other key management
•Entitle the holder to receive, at the end of the performance period, shares of our common stock (retirees) earned, if any, or an equal value in cash (active colleagues), including dividend equivalents on shares earned, dependent upon the achievement of predetermined goals related to two measures:
a.Adjusted net income over three one-year periods; and
b.TSR as compared to the NYSE ARCA Pharmaceutical Index (DRG Index) over the three-year performance period.
•PSAs vest on the third anniversary of the grant assuming continuous service from the grant date.
•The award that may be earned ranges from 0% to 200% of the target award depending on goal achievement over the performance period.
As of the grant date using the intrinsic value method using the closing price of our common stock
Amortized on a straight-line basis over the vesting term into Cost of sales, Selling, informational and administrative expenses, and/or Research and development expenses, as appropriate, and adjusted each reporting period, as necessary, to reflect changes in the price of our common stock, the number of shares that are probable of being earned and management’s assessment of the probability that the specified performance criteria will be achieved.
Breakthrough Performance Awards (BPAs)
Select employees identified as instrumental in delivering medicines to patients (excluding executive officers)
•Entitle the holder to receive, at the end of the performance period, shares of our common stock, if any, including shares resulting from dividend equivalents earned on such shares.
•For BPAs granted, the awards, if earned/vested, are settled at the end of the performance period, but no earlier than the one-year anniversary of the date of grant and dependent upon the achievement of the respective predetermined performance goals related to advancing Pfizer’s product pipeline during the performance period.
•The number of shares that may be earned ranges from 0% to 600% of the target award depending on the level and timing of goal achievement over the performance period.
As of the grant date using the intrinsic value method using the closing price of our common stock
Amortized on a straight-line basis over the probable vesting term into Cost of sales, Selling, informational and administrative expenses, and/or Research and development expenses, as appropriate, and adjusted each reporting period, as necessary, to reflect changes in the price of our common stock, the number of shares that are probable of being earned and management’s assessment of the probability that the specified performance criteria will be achieved and/or management’s assessment of the probable vesting term.
Awarded toTermsValuationRecognition and Presentation
Stock Options
Select employees
•Entitle the holder to purchase a specified number of shares of our common stock at a price per share equal to the closing market price of our common stock on the date of grant, for a period of time when vested.
•Since 2016, only a limited set of non-U.S. employees received stock option grants. No stock options were awarded to senior and other key management in any period presented.
•Stock options vest on the third anniversary of the grant assuming continuous service from the grant date and have a contractual term of 10 years.
As of the grant date using the Black-Scholes-Merton option-pricing model
Amortized on a straight-line basis over the vesting term into Cost of sales, Selling, informational and administrative expenses, and/or Research and development expenses, as appropriate.
(a)Retirement-eligible holders, as defined in the grant terms, can convert their TSRUs, when vested, into Profit Units (PTUs) with a conversion ratio based on a calculation used to determine the shares at TSRU settlement. The PTUs are entitled to earn Dividend Equivalent Units (DEUs), and the PTUs and DEUs will be settled in our common stock on the TSRUs’ original settlement date and will be subject to the terms and conditions of the original grant including forfeiture provisions.
(b)In 2017, Performance Total Shareholder Return Units (PTSRUs) were awarded to the Former Chairman and Chief Executive Officer (1,444,395 PTSRUs) and 361,099 PTSRUs were awarded to the Group President, Chief Business Officer (former role Group President Pfizer Innovative Health) at a grant price of $30.31 and at a GDFV of $5.54 per PTSRU. In addition to having the same characteristics and valuation methodology of TSRUs, PTSRU grants require special service and performance conditions. These awards were settled in December 2022 in accordance with the grant provisions.
The following provides data related to all TSRU, RSU, PPS, PSA and stock option activity:
(MILLIONS, EXCEPT FAIR VALUE OF SHARES VESTED PER TSRU AND STOCK OPTION)TSRUsRSUsPPSsPSAsStock Options
Year Ended December 31,202220212020202220212020202220212020202220212020202220212020
Total fair value of shares vested(a)
$11.72$7.26$6.22$345$304$334$145$181$119$57$33$25$9.44$4.86$3.56
Total intrinsic value of options exercised or share units converted$1,131$594$84$280$228$224$247$584$293
Cash received upon exercise$260$795$425
Tax benefits realized from exercise$46$106$55
Compensation cost recognized, pre-tax(b)
$255$259$287$402$281$272$144$535$180$73$76$31$4$5$6
Total compensation cost related to nonvested awards not yet recognized, pre-tax$179$187$224$266$271$228$135$175$104$38$54$32$3$3$4
Weighted-average period over which cost is expected to be recognized (years)1.71.61.61.71.81.71.71.81.81.81.81.91.71.61.7
(a)Weighted-average GDFV per TSRUs and stock options.
(b)In 2020, TSRU includes expense for PTSRUs, which is not significant.
Total share-based payment expense was $872 million, $1.2 billion and $780 million in 2022, 2021 and 2020, respectively, which includes pre-tax share-based payment expense included in Discontinued operations––net of tax of $0 million, $2 million and $25 million in 2022, 2021 and 2020, respectively. Tax benefit for share-based compensation expense was $160 million, $227 million and $141 million in 2022, 2021 and 2020, respectively.
The table above excludes total expense due to the modification for share-based awards in connection with our cost reduction/productivity initiatives, which was not significant for all years presented and is recorded in Restructuring charges and certain acquisition-related costs (see Note 3). Amounts capitalized as part of inventory cost were not significant for any period presented.
Summary of the weighted-average assumptions used in the valuation of TSRUs and stock options:
TSRUsStock Options
Year Ended December 31,202220212020202220212020
Expected dividend yield (based on a constant dividend yield during the expected term)
3.42 %4.51 %4.36 %3.42 %4.51 %4.36 %
Risk-free interest rate (based on interpolated yield on U.S. Treasury zero-coupon issues)
1.87 %0.93 %1.15 %1.93 %1.27 %1.25 %
Expected stock price volatility (based on implied volatility, after consideration of historical volatility)
29.20 %26.53 %20.99 %29.21 %26.54 %20.97 %
TSRUs contractual/stock options expected term, years (based on historical exercise and post-vesting termination patterns for stock options)
5.175.155.126.506.756.75
Summary of all TSRU, RSU, PPS, PSA and BPA activity during 2022 (with the shares granted representing the maximum award that could be achieved for PPSs, PSAs and BPAs):
TSRUsRSUs
PPSs(a)
PSAsBPAs
TSRUs Per TSRU, Weighted AverageShares  Weighted Avg. GDFV per shareShares Weighted Avg. Intrinsic Value per shareShares Weighted Avg. Intrinsic Value per shareShares Weighted Avg. Intrinsic Value per share
(Thousands)GDFVGrant Price(Thousands)(Thousands)(Thousands)(Thousands)
Nonvested,
December 31, 2021
114,599$6.90 $34.12 25,540$35.52 21,480$59.05 5,154$59.05 859$59.05 
Granted22,47911.72 46.02 9,61746.73 7,08945.96 1,50646.38 — — 
Vested(33,066)8.40 38.57 (7,258)41.10 (5,602)46.99 (1,209)46.98 — — 
Reinvested dividend equivalents876 50.30 
Forfeited(2,318)7.76 35.88 (948)39.75 (645)50.52 (433)47.22 (859)47.21 
Nonvested, December 31, 2022
101,693$7.58 $35.26 27,826$38.26 22,322$51.24 5,018$51.24 — $— 
(a)Vested and non-vested shares outstanding, but not paid as of December 31, 2022 were 34.2 million.
Summary of TSRU and PTU information as of December 31, 2022(a), (b):
TSRUs
(Thousands)
PTUs
(Thousands)
Weighted-Average
Grant Price
Per TSRU
Weighted-Average
Remaining Contractual Term (Years)
Aggregate Intrinsic Value (Millions)
TSRUs Outstanding180,182 $34.51 2.0$3,528 
TSRUs Vested78,488 33.54 0.71,637 
TSRUs Expected to vest(c)
99,060 $35.14 3.01,856 
Outstanding PTUs converted from TSRUs exercised2,621 0.6$134 
(a)In 2022, we settled 42,938,701 TSRUs with a weighted-average grant price of $27.32 per unit.
(b)In 2022, 3,097,904 TSRUs with a weighted-average grant price of $28.37 per unit were converted into 1,820,027 PTUs.
(c)The number of TSRUs expected to vest takes into account an estimate of expected forfeitures.
Summary of all stock option activity during 2022:
Shares
(Thousands)
Weighted-Average
Exercise Price
Per Share
Weighted-Average
Remaining Contractual Term
(Years)
Aggregate
Intrinsic Value(a)
(Millions)
Outstanding, December 31, 2021
44,874 $30.20 
Granted429 45.96 
Exercised(9,859)26.44 
Forfeited(26)34.52 
Expired(138)20.80   
Outstanding, December 31, 2022
35,280 31.47 2.1$697 
Vested and expected to vest, December 31, 2022(b)
35,209 31.46 2.1696 
Exercisable, December 31, 2022
32,460 $31.18 1.6$651 
(a)Market price of our underlying common stock less exercise price.
(b)The number of options expected to vest takes into account an estimate of expected forfeitures.
v3.22.4
Earnings Per Common Share Attributable to Pfizer Inc. Common Shareholders
 12 Months Ended
Dec. 31, 2022
Earnings Per Share [Abstract]  
Earnings Per Common Share Attributable to Pfizer Inc. Common Shareholders Earnings Per Common Share Attributable to Pfizer Inc. Common Shareholders
The following presents the detailed calculation of EPS:
 Year Ended December 31,
(IN MILLIONS)202220212020
EPS Numerator––Basic  
Income from continuing operations attributable to Pfizer Inc. common shareholders
$31,366 $22,414 $6,630 
Discontinued operations––net of tax6 (434)2,529 
Net income attributable to Pfizer Inc. common shareholders
$31,372 $21,979 $9,159 
EPS Numerator––Diluted  
Income from continuing operations attributable to Pfizer Inc. common shareholders and assumed conversions
$31,366 $22,414 $6,630 
Discontinued operations––net of tax, attributable to Pfizer Inc. common shareholders and assumed conversions6 (434)2,529 
Net income attributable to Pfizer Inc. common shareholders and assumed conversions
$31,372 $21,979 $9,159 
EPS Denominator  
Weighted-average number of common shares outstanding––Basic5,608 5,601 5,555 
Common-share equivalents: stock options and stock issuable under employee compensation plans125 107 77 
Weighted-average number of common shares outstanding––Diluted
5,733 5,708 5,632 
Anti-dilutive common stock equivalents(a)
1 2 4 
(a)These common stock equivalents were outstanding for the periods presented, but were not included in the computation of diluted EPS for those periods because their inclusion would have had an anti-dilutive effect.
Allocated shares held by the Common ESOP, including reinvested dividends, are considered outstanding for EPS calculations and the eventual conversion of allocated preferred shares held by the Preferred ESOP was assumed in the diluted EPS calculation until the conversion date, which occurred in May 2020. See Note 12.
v3.22.4
Leases
 12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Leases Leases
We lease real estate, fleet, and equipment for use in our operations. Our leases generally have lease terms of 1 to 30 years, some of which include options to terminate or extend leases for up to 5 to 10 years or on a month-to-month basis. We include options that are reasonably certain to be exercised as part of the determination of lease terms. We may negotiate termination clauses in anticipation of any changes in market conditions, but generally these termination options have not been exercised. Residual value guarantees are generally not included within our operating leases with the exception of some fleet leases. In addition to base rent payments, the leases may require us to pay directly for taxes and other non-lease components, such as insurance, maintenance and other operating expenses, which may be dependent on usage or vary month-to-month. Variable lease payments amounted to $536 million in 2022, $381 million in 2021 and $380 million in 2020. We elected the practical expedient to not separate non-lease components from lease components in calculating the amounts of ROU assets and lease liabilities for all underlying asset classes.
We determine if an arrangement is a lease at inception of the contract and we perform the lease classification test as of the lease commencement date. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our estimated incremental borrowing rate based on the information available at commencement date in determining the present value of future payments.
For operating leases, the ROU assets and liabilities in our consolidated balance sheets follows:
As of December 31,
(MILLIONS)Balance Sheet Classification20222021
ROU assetsOther noncurrent assets$3,002 $2,839 
Lease liabilities (short-term)Other current liabilities620 449 
Lease liabilities (long-term)Other noncurrent liabilities2,597 2,510 
Components of total lease cost includes:
Year Ended December 31,
(MILLIONS)202220212020
Operating lease cost$714 $548 $432 
Variable lease cost536 381 380 
Sublease income(32)(41)(40)
Total lease cost$1,218 $888 $772 
Other supplemental information follows:
As of December 31,
(MILLIONS)20222021
Operating leases
Weighted-Average Remaining Contractual Lease Term (Years)1112
Weighted-Average Discount Rate3.0 %2.8 %
Year Ended December 31,
(MILLIONS)202220212020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$617 $387 $333 
(Gains)/losses on sale and leaseback transactions, net11 1 (3)
The following reconciles the undiscounted cash flows for the first five years and total of the remaining years to the operating lease liabilities recorded in the consolidated balance sheet as of December 31, 2022:
(MILLIONS)
PeriodOperating Lease Liabilities
Next one year(a)
$662 
1-2 years489 
2-3 years356 
3-4 years300 
4-5 years246 
Thereafter1,791 
Total undiscounted lease payments3,844 
Less: Imputed interest
627 
Present value of minimum lease payments3,217 
Less: Current portion
620 
Noncurrent portion$2,597 
(a)Reflects lease payments due within 12 months subsequent to the balance sheet date.
v3.22.4
Contingencies and Certain Commitments
 12 Months Ended
Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]  
Contingencies and Certain Commitments Contingencies and Certain Commitments
We and certain of our subsidiaries are subject to numerous contingencies arising in the ordinary course of business, including tax and legal contingencies, guarantees and indemnifications. The following outlines our legal contingencies, guarantees and indemnifications. For a discussion of our tax contingencies, see Note 5D.
A. Legal Proceedings
Our legal contingencies include, but are not limited to, the following:
•Patent litigation, which typically involves challenges to the coverage and/or validity of patents on various products, processes or dosage forms. An adverse outcome could result in loss of patent protection for a product, a significant loss of revenues from a product or impairment of the value of associated assets. We are the plaintiff in the majority of these actions.
•Product liability and other product-related litigation related to current or former products, which can include personal injury, consumer, off-label promotion, securities, antitrust and breach of contract claims, among others, and often involves highly complex issues relating to medical causation, label warnings and reliance on those warnings, scientific evidence and findings, actual, provable injury and other matters.
•Commercial and other asserted or unasserted matters, which can include acquisition-, licensing-, intellectual property-, collaboration- or co-promotion-related and product-pricing claims and environmental claims and proceedings, and can involve complexities that will vary from matter to matter.
•Government investigations, which often are related to the extensive regulation of pharmaceutical companies by national, state and local government agencies in the U.S. and in other jurisdictions.
Certain of these contingencies could result in increased expenses and/or losses, including damages, royalty payments, fines and/or civil penalties, which could be substantial, and/or criminal charges.
We believe that our claims and defenses in matters in which we are a defendant are substantial, but litigation is inherently unpredictable and excessive verdicts do occur. We do not believe that any of these matters will have a material adverse effect on our financial position. However, we could incur judgments, enter into settlements or revise our expectations regarding the outcome of matters, which could have a material adverse effect on our results of operations and/or our cash flows in the period in which the amounts are accrued or paid.
We have accrued for losses that are both probable and reasonably estimable. Substantially all of our contingencies are subject to significant uncertainties and, therefore, determining the likelihood of a loss and/or the measurement of any loss can be complex. Consequently, we are unable to estimate the range of reasonably possible loss in excess of amounts accrued. Our assessments, which result from a complex series of judgments about future events and uncertainties, are based on estimates and assumptions that have been deemed reasonable by
management, but that may prove to be incomplete or inaccurate, and unanticipated events and circumstances may occur that might cause us to change those estimates and assumptions.
Amounts recorded for legal and environmental contingencies can result from a complex series of judgments about future events and uncertainties and can rely heavily on estimates and assumptions. For proceedings under environmental laws to which a governmental authority is a party, we have adopted a disclosure threshold of $1 million in potential or actual governmental monetary sanctions.
The principal pending matters to which we are a party are discussed below. In determining whether a pending matter is a principal matter, we consider both quantitative and qualitative factors to assess materiality, such as, among others, the amount of damages and the nature of other relief sought, if specified; our view of the merits of the claims and of the strength of our defenses; whether the action purports to be, or is, a class action and, if not certified, our view of the likelihood that a class will be certified by the court; the jurisdiction in which the proceeding is pending; whether related actions have been transferred to multidistrict litigation; any experience that we or, to our knowledge, other companies have had in similar proceedings; whether disclosure of the action would be important to a reader of our financial statements, including whether disclosure might change a reader’s judgment about our financial statements in light of all of the information that is available to the reader; the potential impact of the proceeding on our reputation; and the extent of public interest in the matter. In addition, with respect to patent matters in which we are the plaintiff, we consider, among other things, the financial significance of the product protected by the patent(s) at issue. Some of the matters discussed below include those which management believes that the likelihood of possible loss in excess of amounts accrued is remote.
A1. Legal Proceedings––Patent Litigation
We are involved in suits relating to our patents (or those of our collaboration/licensing partners to which we have licenses or co-promotion rights), including but not limited to, those discussed below. We face claims by generic drug manufacturers that patents covering our products (or those of our collaboration/licensing partners to which we have licenses or co-promotion rights and to which we may or may not be a party), processes or dosage forms are invalid and/or do not cover the product of the generic drug manufacturer. Also, counterclaims, as well as various independent actions, have been filed alleging that our assertions of, or attempts to enforce, patent rights with respect to certain products constitute unfair competition and/or violations of antitrust laws. In addition to the challenges to the U.S. patents that are discussed below, patent rights to certain of our products or those of our collaboration/licensing partners are being challenged in various other jurisdictions. Some of our collaboration or licensing partners face challenges to the validity of their patent rights in non-U.S. jurisdictions. For example, in April 2022, the U.K. High Court issued a judgment finding invalid a BMS patent related to Eliquis due to expire in 2026. In November 2022, BMS received permission to appeal the High Court’s decision. Additional challenges are pending in other jurisdictions. Also, in July 2022, CureVac AG (CureVac) brought a patent infringement action against BioNTech and certain of its subsidiaries in the German Regional Court alleging that Comirnaty infringes certain German utility model patents and certain expired and unexpired European patents. Additional challenges involving Comirnaty patents may be filed against us and/or BioNTech in other jurisdictions in the future. Adverse decisions in these matters could have a material adverse effect on our results of operations. We are also party to patent damages suits in various jurisdictions pursuant to which generic drug manufacturers, payers, governments or other parties are seeking damages from us for allegedly causing delay of generic entry.
We also are often involved in other proceedings, such as inter partes review, post-grant review, re-examination or opposition proceedings, before the U.S. Patent and Trademark Office, the European Patent Office, or other foreign counterparts relating to our intellectual property or the intellectual property rights of others. Also, if one of our patents (or one of our collaboration/licensing partners patents) is found to be invalid by such proceedings, generic or competitive products could be introduced into the market resulting in the erosion of sales of our existing products. For example, several of the patents in our pneumococcal vaccine portfolio have been challenged in inter partes review and post-grant review proceedings in the U.S. Patent and Trademark Office, as well as outside the U.S. The invalidation of any of the patents in our pneumococcal portfolio could potentially allow additional competitor vaccines, if approved, to enter the marketplace earlier than anticipated. In the event that any of the patents are found valid and infringed, a competitor’s vaccine, if approved, might be prohibited from entering the market or a competitor might be required to pay us a royalty.
We are also subject to patent litigation pursuant to which one or more third parties seek damages and/or injunctive relief to compensate for alleged infringement of its patents by our commercial or other activities. If one of our marketed products (or a product of our collaboration/licensing partners) is found to infringe valid patent rights of a third party, such third party may be awarded significant damages or royalty payments, or we may be prevented from further sales of that product. Such damages may be enhanced as much as three-fold if we or one of our subsidiaries is found to have willfully infringed valid patent rights of a third party.
Actions In Which We Are The Plaintiff
Xeljanz (tofacitinib)
Beginning in 2017, we brought patent-infringement actions against several generic manufacturers that filed separate abbreviated new drug applications (ANDAs) with the FDA seeking approval to market their generic versions of tofacitinib tablets in one or both of 5 mg and 10 mg dosage strengths, and in both immediate and extended release forms. To date, we have settled actions with several manufacturers on terms not material to us. The remaining action continues in the U.S. District Court for the District of Delaware as described below.
In October 2021, we brought a separate patent-infringement action against Sinotherapeutics Inc. (Sinotherapeutics) asserting the infringement and validity of our patent covering extended release formulations of tofacitinib that was challenged by Sinotherapeutics in its ANDA seeking approval to market a generic version of tofacitinib 11 mg extended release tablets. In November 2022, we filed an additional patent-infringement action against Sinotherapeutics relating to its challenge of our extended release formulation and method of treatment patents in its ANDA seeking approval to market a generic version of tofacitinib 22 mg extended release tablets.
In November 2022, we brought a separate patent-infringement action against Sun Pharmaceutical Industries Limited and Sun Pharmaceutical Industries, Inc. (collectively, Sun) asserting the infringement and validity of our compound patent covering the active ingredient that was challenged by Sun in its ANDAs seeking approval to market generic versions of tofacitinib extended release (11 mg, 22 mg) tablets. In January 2023, we settled our action against Sun on terms not material to us.
Inlyta (axitinib)
In 2019, Glenmark Pharmaceuticals Ltd. (Glenmark) notified us that it had filed an ANDA with the FDA seeking approval to market a generic version of Inlyta. Glenmark asserts the invalidity and non-infringement of the crystalline form patent for Inlyta that expires in 2030. In 2019, we filed suit against Glenmark in the U.S. District Court for the District of Delaware, asserting the validity and infringement of the crystalline form patent for Inlyta. In November 2022, we settled our action against Glenmark on terms not material to us.
Ibrance (palbociclib)
Beginning in January 2021, several generic companies notified us that they had filed ANDAs with the FDA seeking approval to market generic versions of Ibrance tablets. The generic companies are challenging some or all of the following patents: (i) the composition of matter patent expiring in 2027; (ii) the composition of matter patent expiring in 2023; (iii) the method of use patent expiring in 2023; (iv) the crystalline form patent expiring in 2034; and (v) a tablet formulation patent expiring in 2036. We brought patent infringement actions against each of the generic filers in various U.S. federal courts, asserting the validity and infringement of the patents challenged by the generic companies. We have settled with one of these generic companies on terms not material to us, and we dismissed the patent infringement actions relating to the crystalline form of patent, the composition of matter patent expiring in 2023, the method of use patent, and the tablet formulation patent against the generic companies that had challenged these patents. The composition of matter patent expiring in 2027 remains in suit.
Eucrisa
Beginning in September 2021, several generic companies notified us that they had filed ANDAs with the FDA seeking approval to market generic versions of Eucrisa. The companies assert the invalidity and non-infringement of a composition of matter patent expiring in 2026, two method of use patents expiring in 2027, and one other method of use patent expiring in 2030. In September 2021, we brought patent infringement actions against the generic filers in the U.S. District Court for the District of Delaware, asserting the validity and infringement of the patents challenged by the generic companies.
Braftovi (encorafenib)
In August 2022, a generic company notified us that it had filed an ANDA with the FDA seeking approval to market a generic version of Braftovi. The company asserted the invalidity and non-infringement of, among others, a method of use patent expiring in 2033. In September 2022, we brought a patent infringement action against the generic company in the U.S. District Court for the District of Delaware, asserting the validity and infringement of the method of use patent expiring in 2033. In January 2023, the case was dismissed.
Mektovi (binimetinib)
Beginning in August 2022, several generic companies notified us that they had filed ANDAs with the FDA seeking approval to market generic versions of Mektovi. The companies assert the invalidity and non-infringement of two method of use patents expiring in 2030, a method of use patent expiring in 2031, two method of use patents expiring in 2033, and a product by process patent expiring in 2033. Beginning in September 2022, we brought patent infringement actions against the generic filers in the U.S. District Court for the District of Delaware, asserting the validity and infringement of all six patents.
Actions in Which We are the Defendant
Comirnaty
In March 2022, Alnylam Pharmaceuticals, Inc. (Alnylam) filed a complaint in the U.S. District Court for the District of Delaware against Pfizer and Pharmacia & Upjohn Co. LLC, our wholly owned subsidiary, alleging that Comirnaty infringes U.S. Patent No. 11,246,933, which was issued in February 2022, and seeking unspecified monetary damages. In July 2022, Alnylam filed a second complaint in the U.S. District Court for the District of Delaware against Pfizer, Pharmacia & Upjohn Co. LLC, BioNTech and BioNTech Manufacturing GmbH, alleging that Comirnaty infringes U.S. Patent No. 11,382,979, which was issued in July 2022, and seeking unspecified monetary damages.
In August 2022, ModernaTX, Inc. (ModernaTX) and Moderna US, Inc. (Moderna) sued Pfizer, BioNTech, BioNTech Manufacturing GmbH and BioNTech US Inc. in the U.S. District Court for the District of Massachusetts, alleging that Comirnaty infringes three U.S. patents. In its complaint, Moderna stated that it is seeking damages for alleged infringement occurring after March 7, 2022.
In August 2022, ModernaTX filed a patent infringement action in Germany against Pfizer and certain subsidiary companies, as well as BioNTech and certain subsidiary companies, alleging that Comirnaty infringes two European patents. In September 2022, ModernaTX filed patent infringement actions in the U.K and in the Netherlands against Pfizer and certain subsidiary companies, as well as BioNTech and certain subsidiary companies, on the same two patents. In its complaints, ModernaTX stated that it is seeking damages for alleged infringement occurring after March 7, 2022. In the U.K., Pfizer and BioNTech have brought an action against ModernaTX seeking to revoke these European patents, which was consolidated with the September 2022 action filed by ModernaTX.
Paxlovid
In June 2022, Enanta Pharmaceuticals, Inc. filed a complaint in the U.S. District Court for the District of Massachusetts against Pfizer alleging that the active ingredient in Paxlovid, nirmatrelvir, infringes U.S. Patent No. 11,358,953, which was issued in June 2022, and seeking unspecified monetary damages.
Matters Involving Pfizer and its Collaboration/Licensing Partners
Comirnaty
In July 2022, Pfizer, BioNTech and BioNTech Manufacturing GmbH filed a declaratory judgment complaint against CureVac in the U.S. District Court for the District of Massachusetts seeking a judgment of non-infringement for the following three patents relating to Comirnaty: U.S. Patent Nos. 11,135,312, 11,149,278, and 11,241,493. Outside of the U.S., in the U.K., Pfizer and BioNTech have sued CureVac seeking a judgment of invalidity of several patents and CureVac has made certain infringement counterclaims.
Xtandi (enzalutamide)
In July 2022, Medivation and Medivation Prostate Therapeutics, Inc.; Astellas Pharma Inc., Astellas US LLC and Astellas Pharma US, Inc.; and The Regents of the University of California filed a patent-infringement suit in the U.S. District Court for the District of New Jersey against Zydus Pharmaceuticals (USA) Inc. and Zydus Lifesciences Ltd.; and in December 2022, the same entities filed a patent-infringement suit in the U.S. District Court for the District of New Jersey against Sun in connection with those companies’ respective ANDAs seeking approval to market
generic versions of enzalutamide. The generic manufacturers are challenging the composition of matter patent, which expires in 2027, covering enzalutamide and pharmaceutical compositions thereof, for treating prostate cancer.
A2. Legal Proceedings––Product Litigation
We are defendants in numerous cases, including but not limited to those discussed below, related to our pharmaceutical and other products. Plaintiffs in these cases seek damages and other relief on various grounds for alleged personal injury and economic loss.
Asbestos
Between 1967 and 1982, Warner-Lambert owned American Optical Corporation (American Optical), which manufactured and sold respiratory protective devices and asbestos safety clothing. In connection with the sale of American Optical in 1982, Warner-Lambert agreed to indemnify the purchaser for certain liabilities, including certain asbestos-related and other claims. Warner-Lambert was acquired by Pfizer in 2000 and is a wholly owned subsidiary of Pfizer. Warner-Lambert is actively engaged in the defense of, and will continue to explore various means of resolving, these claims.
Numerous lawsuits against American Optical, Pfizer and certain of its previously owned subsidiaries are pending in various federal and state courts seeking damages for alleged personal injury from exposure to products allegedly containing asbestos and other allegedly hazardous materials sold by Pfizer and certain of its previously owned subsidiaries.
There also are a small number of lawsuits pending in various federal and state courts seeking damages for alleged exposure to asbestos in facilities owned or formerly owned by Pfizer or its subsidiaries.
Effexor
Beginning in 2011, actions, including purported class actions, were filed in various federal courts against Wyeth and, in certain of the actions, affiliates of Wyeth and certain other defendants relating to Effexor XR, which is the extended-release formulation of Effexor. The plaintiffs in each of the class actions seek to represent a class consisting of all persons in the U.S. and its territories who directly purchased, indirectly purchased or reimbursed patients for the purchase of Effexor XR or generic Effexor XR from any of the defendants from June 14, 2008 until the time the defendants’ allegedly unlawful conduct ceased. The plaintiffs in all of the actions allege delay in the launch of generic Effexor XR in the U.S. and its territories, in violation of federal antitrust laws and, in certain of the actions, the antitrust, consumer protection and various other laws of certain states, as the result of Wyeth fraudulently obtaining and improperly listing certain patents for Effexor XR in the Orange Book, enforcing certain patents for Effexor XR and entering into a litigation settlement agreement with a generic drug manufacturer with respect to Effexor XR. Each of the plaintiffs seeks treble damages (for itself in the individual actions or on behalf of the putative class in the purported class actions) for alleged price overcharges for Effexor XR or generic Effexor XR in the U.S. and its territories since June 14, 2008. All of these actions have been consolidated in the U.S. District Court for the District of New Jersey.
In 2014, the District Court dismissed the direct purchaser plaintiffs’ claims based on the litigation settlement agreement, but declined to dismiss the other direct purchaser plaintiff claims. In 2015, the District Court entered partial final judgments as to all settlement agreement claims, including those asserted by direct purchasers and end-payer plaintiffs, which plaintiffs appealed to the U.S. Court of Appeals for the Third Circuit. In 2017, the U.S. Court of Appeals for the Third Circuit reversed the District Court’s decisions and remanded the claims to the District Court.
Lipitor
Beginning in 2011, purported class actions relating to Lipitor were filed in various federal courts against, among others, Pfizer, certain Pfizer affiliates, and, in most of the actions, Ranbaxy Laboratories Ltd. (Ranbaxy) and certain Ranbaxy affiliates. The plaintiffs in these various actions seek to represent nationwide, multi-state or statewide classes consisting of persons or entities who directly purchased, indirectly purchased or reimbursed patients for the purchase of Lipitor (or, in certain of the actions, generic Lipitor) from any of the defendants from March 2010 until the cessation of the defendants’ allegedly unlawful conduct (the Class Period). The plaintiffs allege delay in the launch of generic Lipitor, in violation of federal antitrust laws and/or state antitrust, consumer protection and various other laws, resulting from (i) the 2008 agreement pursuant to which Pfizer and Ranbaxy settled certain patent litigation involving Lipitor and Pfizer granted Ranbaxy a license to sell a generic version of Lipitor in various markets beginning on varying dates, and (ii) in certain of the actions, the procurement and/or enforcement of certain patents for Lipitor. Each of the actions seeks, among other things, treble damages on behalf of the putative class for alleged price overcharges for Lipitor (or, in certain of the actions, generic Lipitor) during the Class Period. In addition, individual actions have been filed against Pfizer, Ranbaxy and certain of their affiliates, among others, that assert claims and seek relief for the plaintiffs that are substantially similar to the claims asserted and the relief sought in the purported class actions described above. These various actions have been consolidated for pre-trial proceedings in a MDL in the U.S. District Court for the District of New Jersey.
In September 2013 and 2014, the District Court dismissed with prejudice the claims of the direct purchasers. In October and November 2014, the District Court dismissed with prejudice the claims of all other MDL plaintiffs. All plaintiffs appealed the District Court’s orders dismissing their claims with prejudice to the U.S. Court of Appeals for the Third Circuit. In addition, the direct purchaser class plaintiffs appealed the order denying their motion to amend the judgment and for leave to amend their complaint to the Court of Appeals. In 2017, the Court of Appeals reversed the District Court’s decisions and remanded the claims to the District Court.
Also, in 2013, the State of West Virginia filed an action in West Virginia state court against Pfizer and Ranbaxy, among others, that asserts claims and seeks relief on behalf of the State of West Virginia and residents of that state that are substantially similar to the claims asserted and the relief sought in the purported class actions described above.
EpiPen (Direct Purchaser)
In February 2020, a lawsuit was filed in the U.S. District Court for the District of Kansas against Pfizer, its current and former affiliates King and Meridian, and various Mylan entities, on behalf of a purported U.S. nationwide class of direct purchaser plaintiffs who purchased EpiPen devices directly from the defendants. Plaintiffs in this action generally allege that Pfizer and Mylan conspired to delay market entry of generic EpiPen through the settlement of patent litigation regarding EpiPen, and thereby delayed market entry of generic EpiPen in violation of federal antitrust law. Plaintiffs seek treble damages for alleged overcharges for EpiPen since 2011. In July 2021, the District Court granted defendants’ motion to dismiss the direct purchaser complaint, without prejudice. In September 2021, plaintiffs filed an amended complaint. In August 2022, the District Court granted Pfizer’s motion to dismiss the complaint, and plaintiffs have appealed to the U.S. Court of Appeals for the Tenth Circuit.
Nexium 24HR and Protonix
A number of individual and multi-plaintiff lawsuits have been filed against Pfizer, certain of its subsidiaries and/or other pharmaceutical manufacturers in various federal and state courts alleging that the plaintiffs developed kidney-related injuries purportedly as a result of the ingestion of certain proton pump inhibitors. The cases against Pfizer involve Protonix and/or Nexium 24HR and seek compensatory and punitive damages and, in some cases, treble damages, restitution or disgorgement. In 2017, the federal actions were ordered transferred for coordinated pre-trial proceedings to a MDL in the U.S. District Court for the District of New Jersey. As part of the combination of our and GSK’s consumer healthcare businesses to form Haleon, Haleon assumed, and agreed to indemnify Pfizer for, liabilities arising out of such litigation to the extent related to Nexium 24HR.
Docetaxel
•Personal Injury Actions
A number of lawsuits have been filed against Hospira and Pfizer in various federal and state courts alleging that plaintiffs who were treated with Docetaxel developed permanent hair loss. The significant majority of the cases also name other defendants, including the manufacturer of the branded product, Taxotere. Plaintiffs seek compensatory and punitive damages. Additional lawsuits have been filed in which plaintiffs allege they developed blocked tear ducts following their treatment with Docetaxel.
In 2016, the federal cases were transferred for coordinated pre-trial proceedings to a MDL in the U.S. District Court for the Eastern District of Louisiana. In 2022, the eye injury cases were transferred for coordinated pre-trial proceedings to a MDL in the U.S. District Court for the Eastern District of Louisiana.
•Mississippi Attorney General Government Action
In 2018, the Attorney General of Mississippi filed a complaint in Mississippi state court against the manufacturer of the branded product and eight other manufacturers including Pfizer and Hospira, alleging, with respect to Pfizer and Hospira, a failure to warn about a risk of permanent hair loss in violation of the Mississippi Consumer Protection Act. The action seeks civil penalties and injunctive relief.
Zantac
A number of lawsuits have been filed against Pfizer in various federal and state courts alleging that plaintiffs developed various types of cancer, or face an increased risk of developing cancer, purportedly as a result of the ingestion of Zantac. The significant majority of these cases also name other defendants that have historically manufactured and/or sold Zantac. Pfizer has not sold Zantac since 2006, and only sold an OTC version of the product. In 2006, Pfizer sold the consumer business that included its Zantac OTC rights to Johnson & Johnson and transferred the assets and liabilities related to Zantac OTC to Johnson & Johnson in connection with the sale. Plaintiffs in these cases seek compensatory and punitive damages.
In February 2020, the federal actions were transferred for coordinated pre-trial proceedings to a MDL in the U.S. District Court for the Southern District of Florida (the Federal MDL Court). Plaintiffs in the MDL have filed against Pfizer and many other defendants a master personal injury complaint, asserting a consolidated consumer class action alleging, among other things, claims under consumer protection statutes of all 50 states, and a medical monitoring complaint seeking to certify medical monitoring classes under the laws of 13 states. In addition, (i) Pfizer has received service of Canadian class action complaints naming Pfizer and other defendants, and seeking compensatory and punitive damages for personal injury and economic loss, allegedly arising from the defendants’ sale of Zantac in Canada; and (ii) the State of New Mexico and the Mayor and City Council of Baltimore separately filed civil actions against Pfizer and many other defendants in state courts, alleging various state statutory and common law claims in connection with the defendants’ alleged sale of Zantac in those jurisdictions. In April 2021, a Judicial Council Coordinated Proceeding was created in the Superior Court of California in Alameda County to coordinate personal injury actions against Pfizer and other defendants filed in California state court. Coordinated proceedings have also been created in other state courts. In December 2022, the Federal MDL Court granted defendants’ Daubert motions to exclude plaintiffs’ expert testimony and motion for summary judgment on general causation, and dismissed the litigation.
Chantix
Beginning in August 2021, a number of putative class actions have been filed against Pfizer in various U.S. federal courts following Pfizer’s voluntary recall of Chantix due to the presence of a nitrosamine, N-nitroso-varenicline. Plaintiffs assert that they suffered economic harm purportedly as a result of purchasing Chantix or generic varenicline medicines sold by Pfizer. Plaintiffs seek to represent nationwide and state-specific classes and seek various remedies, including damages and medical monitoring. In December 2022, the federal actions were transferred for coordinated pre-trial proceedings to a MDL in the U.S. District Court for the Southern District of New York. Similar putative class actions have been filed in Canada and Israel, where the product brand is Champix.
A3. Legal Proceedings––Commercial and Other Matters
Monsanto-Related Matters
In 1997, Monsanto Company (Former Monsanto) contributed certain chemical manufacturing operations and facilities to a newly formed corporation, Solutia Inc. (Solutia), and spun off the shares of Solutia. In 2000, Former Monsanto merged with Pharmacia & Upjohn Company to form Pharmacia. Pharmacia then transferred its agricultural operations to a newly created subsidiary, named Monsanto Company (New Monsanto), which it spun off in a two-stage process that was completed in 2002. Pharmacia was acquired by Pfizer in 2003 and is a wholly owned subsidiary of Pfizer.
In connection with its spin-off that was completed in 2002, New Monsanto assumed, and agreed to indemnify Pharmacia for, any liabilities related to Pharmacia’s former agricultural business. New Monsanto has defended and/or is defending Pharmacia in connection with various claims and litigation arising out of, or related to, the agricultural business, and has been indemnifying Pharmacia when liability has been imposed or settlement has been reached regarding such claims and litigation.
In connection with its spin-off in 1997, Solutia assumed, and agreed to indemnify Pharmacia for, liabilities related to Former Monsanto’s chemical businesses. As the result of its reorganization under Chapter 11 of the U.S. Bankruptcy Code, Solutia’s indemnification obligations relating to Former Monsanto’s chemical businesses are primarily limited to sites that Solutia has owned or operated. In addition, in connection with its spin-off that was completed in 2002, New Monsanto assumed, and agreed to indemnify Pharmacia for, any liabilities primarily related to Former Monsanto’s chemical businesses, including, but not limited to, any such liabilities that Solutia assumed. Solutia’s and New Monsanto’s
assumption of, and agreement to indemnify Pharmacia for, these liabilities apply to pending actions and any future actions related to Former Monsanto’s chemical businesses in which Pharmacia is named as a defendant, including, without limitation, actions asserting environmental claims, including alleged exposure to polychlorinated biphenyls. Solutia and/or New Monsanto are defending Pharmacia in connection with various claims and litigation arising out of, or related to, Former Monsanto’s chemical businesses, and have been indemnifying Pharmacia when liability has been imposed or settlement has been reached regarding such claims and litigation.
Environmental Matters
In 2009, as part of our acquisition of Wyeth, we assumed responsibility for environmental remediation at the Wyeth Holdings LLC (formerly known as, Wyeth Holdings Corporation and American Cyanamid Company) discontinued industrial chemical facility in Bound Brook, New Jersey. Since that time, we have executed or have become a party to a number of administrative settlement agreements, orders on consent, and/or judicial consent decrees, with the U.S. Environmental Protection Agency and/or New Jersey Department of Environmental Protection to perform remedial design, removal and remedial actions, and related environmental remediation activities at the Bound Brook facility. We have accrued for the currently estimated costs of these activities.
We are a party to a number of other proceedings brought under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended, and other state, local or foreign laws in which the primary relief sought is the cost of past and/or future remediation.
Contracts with Iraqi Ministry of Health
In 2017, a number of U.S. service members, civilians, and their families brought a complaint in the U.S. District Court for the District of Columbia against a number of pharmaceutical and medical devices companies, including Pfizer and certain of its subsidiaries, alleging that the defendants violated the U.S. Anti-Terrorism Act. The complaint alleges that the defendants provided funding for terrorist organizations through their sales practices pursuant to pharmaceutical and medical device contracts with the Iraqi Ministry of Health, and seeks monetary relief. In July 2020, the District Court granted defendants’ motions to dismiss and dismissed all of plaintiffs’ claims. In January 2022, the Court of Appeals reversed the District Court’s decision. In February 2023, the defendants filed for en banc review of the Court of Appeals’ decision. In February 2023, the Court of Appeals denied defendants’ en banc petitions.
Allergan Complaint for Indemnity
In 2019, Pfizer was named as a defendant in a complaint, along with King, filed by Allergan Finance LLC (Allergan) in the Supreme Court of the State of New York, asserting claims for indemnity related to Kadian, which was owned for a short period by King in 2008, prior to Pfizer's acquisition of King in 2010. This suit was voluntarily discontinued without prejudice in January 2021.
Viatris Securities Litigation
In October 2021, a putative class action was filed in the Court of Common Pleas of Allegheny County, Pennsylvania on behalf of former Mylan N.V. shareholders who received Viatris common stock in exchange for Mylan shares in connection with the spin-off of the Upjohn Business and its combination with Mylan (the Transactions). Viatris, Pfizer, and certain of each company’s current and former officers, directors and employees are named as defendants. An amended complaint was filed in January 2023, and alleges that the defendants violated certain provisions of the Securities Act of 1933 in connection with certain disclosures made in or omitted from the registration statement and related prospectus issued in connection with the Transactions, as well as related communications. Plaintiff seeks damages, costs and expenses and other equitable and injunctive relief.
A4. Legal Proceedings––Government Investigations
We are subject to extensive regulation by government agencies in the U.S., other developed markets and multiple emerging markets in which we operate. Criminal charges, substantial fines and/or civil penalties, limitations on our ability to conduct business in applicable jurisdictions, corporate integrity or deferred prosecution agreements, as well as reputational harm and increased public interest in the matter could result from government investigations in the U.S. and other jurisdictions in which we do business. These matters often involve government requests for information on a voluntary basis or through subpoenas after which the government may seek additional information through follow-up requests or additional subpoenas. In addition, in a qui tam lawsuit in which the government declines to intervene, the relator may still pursue a suit for the recovery of civil damages and penalties on behalf of the government. Among the investigations by government agencies are the matters discussed below.
Greenstone Investigations
•U.S. Department of Justice Antitrust Division Investigation
Since July 2017, the U.S. Department of Justice's Antitrust Division has been investigating our former Greenstone generics business. We believe this is related to an ongoing broader antitrust investigation of the generic pharmaceutical industry. We have produced records relating to this investigation.
•State Attorneys General and Multi-District Generics Antitrust Litigation
In April 2018, Greenstone received requests for information from the Antitrust Department of the Connecticut Office of the Attorney General. In May 2019, Attorneys General of more than 40 states plus the District of Columbia and Puerto Rico filed a complaint against a number of pharmaceutical companies, including Greenstone and Pfizer. The matter has been consolidated with a MDL in the Eastern District of Pennsylvania. As to Greenstone and Pfizer, the complaint alleges anticompetitive conduct in violation of federal and state antitrust laws and state consumer protection laws. In June 2020, the State Attorneys General filed a new complaint against a large number of companies, including Greenstone and Pfizer, making similar allegations, but concerning a new set of drugs. This complaint was transferred to the MDL in July 2020. The MDL also includes civil complaints filed by private plaintiffs and state counties against Pfizer, Greenstone and a significant number of other defendants asserting allegations that generally overlap with those asserted by the State Attorneys General.
Subpoena & Civil Investigative Demand relating to Tris Pharma/Quillivant XR
In October 2018, we received a subpoena from the U.S. Attorney’s Office for the Southern District of New York (SDNY) seeking records relating to our relationship with another drug manufacturer and its production and manufacturing of drugs including, but not limited to, Quillivant XR. We responded to that subpoena in full and have had no communication with the SDNY in connection with the subpoena since June 2019.
Additionally, in September 2020, we received a Civil Investigative Demand (CID) from the Texas Attorney General’s office seeking records of a similar nature to those requested by the SDNY. We are producing records in response to this request.
Government Inquiries relating to Meridian Medical Technologies
In February 2019, we received a CID from the U.S. Attorney’s Office for the SDNY. The CID seeks records and information related to alleged quality issues involving the manufacture of auto-injectors at the Meridian site. In August 2019, we received a HIPAA subpoena issued by the U.S. Attorney’s Office for the Eastern District of Missouri, in coordination with the Department of Justice’s Consumer Protection Branch, seeking similar records and information. We are producing records in response to these and subsequent requests.
U.S. Department of Justice/SEC Inquiry relating to Russian Operations
In June 2019, we received an informal request from the U.S. Department of Justice’s Foreign Corrupt Practices Act (FCPA) Unit seeking documents relating to our operations in Russia. In September 2019, we received a similar request from the SEC’s FCPA Unit. We have produced records pursuant to these requests.
Docetaxel––Mississippi Attorney General Government Investigation
See Legal Proceedings––Product Litigation––Docetaxel––Mississippi Attorney General Government Investigation above for information regarding a government investigation related to Docetaxel marketing practices.
U.S. Department of Justice Inquiries relating to India Operations
In March 2020, we received an informal request from the U.S. Department of Justice's Consumer Protection Branch seeking documents relating to our manufacturing operations in India, including at our former facility located at Irrungattukottai in India. In April 2020, we received a similar request from the U.S. Attorney’s Office for the SDNY regarding a civil investigation concerning operations at our facilities in India. We are producing records pursuant to these requests.
U.S. Department of Justice/SEC Inquiry relating to China Operations
In June 2020, we received an informal request from the U.S. Department of Justice's FCPA Unit seeking documents relating to our operations in China. In August 2020, we received a similar request from the SEC’s FCPA Unit. We have produced records pursuant to these requests.
Zantac––State of New Mexico and Mayor and City Council of Baltimore Civil Actions
See Legal Proceedings––Product Litigation––Zantac above for information regarding civil actions separately filed by the State of New Mexico and the Mayor and City Council of Baltimore alleging various state statutory and common law claims in connection with the defendants’ alleged sale of Zantac in those jurisdictions.
Government Inquiries relating to Biohaven
In June 2022, the U.S. Department of Justice's Commercial Litigation Branch and the U.S. Attorney’s Office for the Western District of New York issued a CID relating to Biohaven. The CID seeks records and information related to, among other things, engagements with health care professionals and co-pay coupons cards. Biohaven is a wholly-owned subsidiary that we acquired in October 2022. We are producing records in response to these requests.
B. Guarantees and Indemnifications
In the ordinary course of business and in connection with the sale of assets and businesses and other transactions, we often indemnify our counterparties against certain liabilities that may arise in connection with the transaction or that are related to events and activities prior to or following a transaction. If the indemnified party were to make a successful claim pursuant to the terms of the indemnification, we may be required to reimburse the loss. These indemnifications are generally subject to various restrictions and limitations. Historically, we have not paid significant amounts under these provisions and, as of December 31, 2022, the estimated fair value of these indemnification obligations is not material to Pfizer. See Note 2C for a description of the March 2022 indemnity provided by Pfizer to GSK in connection with the issuance of notes by the Consumer Healthcare JV. In conjunction with the completion of GSK’s demerger transactions in July 2022, GSK’s guarantee and our related indemnification of GSK’s guarantee were terminated.
In addition, in connection with our entry into certain agreements and other transactions, our counterparties may be obligated to indemnify us. For example, in November 2020, we and Mylan completed the transaction to spin-off our Upjohn Business and combine it with Mylan to form Viatris. As part of the transaction and as previously disclosed, each of Viatris and Pfizer has agreed to assume, and to indemnify the other for, liabilities arising out of certain matters. Also, our global agreement with BioNTech to co-develop a mRNA-based coronavirus vaccine program aimed at preventing COVID-19 infection, includes certain indemnity provisions pursuant to which each of BioNTech and Pfizer has agreed to indemnify the other for certain liabilities that may arise in connection with certain third-party claims relating to Comirnaty.
We have also guaranteed the long-term debt of certain companies that we acquired and that now are subsidiaries of Pfizer. See Note 7D.
C. Certain Commitments
As of December 31, 2022, we had commitments totaling $4.4 billion that are legally binding and enforceable. These commitments include payments relating to potential milestone payments deemed reasonably likely to occur, and purchase obligations for goods and services.
See Note 5A for information on the TCJA repatriation tax liability.
D. Contingent Consideration for Acquisitions
We may be required to make payments to sellers for certain prior business combinations that are contingent upon future events or outcomes. See Note 1D. The estimated fair value of contingent consideration as of December 31, 2022 is $645 million, of which $42 million is recorded in Other current liabilities and $603 million in Other noncurrent liabilities, and as of December 31, 2021 was $697 million, of which $135 million was recorded in Other current liabilities and $563 million in Other noncurrent liabilities. The decrease in the contingent consideration balance
from December 31, 2021 is primarily due to payments made upon the achievement of certain sales-based milestones partially offset by fair value adjustments.
E. Insurance
Our insurance coverage reflects market conditions (including cost and availability) existing at the time it is written, and our decision to obtain insurance coverage or to self-insure varies accordingly. Depending upon the cost and availability of insurance and the nature of the risk involved, the amount of self-insurance may be significant. The cost and availability of coverage have resulted in self-insuring certain exposures, including product liability. If we incur substantial liabilities that are not covered by insurance or substantially exceed insurance coverage and that are in excess of existing accruals, there could be a material adverse effect on our cash flows or results of operations in the period in which the amounts are paid and/or accrued.
v3.22.4
Segment, Geographic and Other Revenue Information
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Segment, Geographic and Other Revenue Information Segment, Geographic and Other Revenue Information
A. Segment Information
We regularly review our operating segments and the approach used by management to evaluate performance and allocate resources. We manage our commercial operations through two operating segments, Biopharma and PC1, which are each led by a single manager. Biopharma is the only reportable segment. Each operating segment has responsibility for its commercial activities. Regional commercial organizations market, distribute and sell our products and are supported by global platform functions that are responsible for the research, development, manufacturing and supply of our products and global corporate enabling functions. Biopharma receives its R&D services from WRDM and GPD. These services include IPR&D projects for new investigational products and additional indications for in-line products. Each operating segment has a geographic footprint across developed and emerging markets. Our chief operating decision maker uses the revenues and earnings of the operating segments, among other factors, for performance evaluation and resource allocation.
After the organizational changes in the third quarter of 2022 (see Note 1A), the new commercial structure within Biopharma is designed to better support and optimize performance across three broad customer groups:
•Primary Care consists of the former Internal Medicine and Vaccines product portfolios, products for COVID-19 prevention and treatment, and potential future mRNA and antiviral products.
•Specialty Care consists of the former Inflammation & Immunology, Rare Disease and Hospital (excluding Paxlovid) product portfolios.
•Oncology consists of the former Oncology product portfolio.
Other Business Activities––Includes the operating results of PC1 as well as certain pre-tax costs not allocated to our operating segment results, such as costs associated with:
•WRDM––the R&D and Medical expenses managed by our WRDM organization, which is generally responsible for research projects for our Biopharma portfolio until proof-of-concept is achieved and then for transitioning those projects to the GPD organization for possible clinical and commercial development. R&D spending may include upfront and milestone payments for intellectual property rights. The WRDM organization also has responsibility for certain science-based and other platform-services organizations, which provide end-to-end technical expertise and other services to the various R&D projects, as well as the Worldwide Medical and Safety group, which ensures that Pfizer provides all stakeholders––including patients, healthcare providers, pharmacists, payers and health authorities––with complete and up-to-date information on the risks and benefits associated with Pfizer products so that they can make appropriate decisions on how and when to use Pfizer’s medicines.
•GPD––the costs associated with our GPD organization, which is generally responsible for clinical trials from WRDM in the Biopharma portfolio, including both early- and late-stage portfolio spend. GPD also provides technical support and other services to Pfizer R&D projects. GPD is responsible for facilitating all regulatory submissions and interactions with regulatory agencies.
•Corporate and other unallocated––the costs associated with (i) corporate enabling functions (such as digital, global real estate operations, legal, finance, human resources, worldwide public affairs, compliance and worldwide procurement, among others) and other corporate costs, including, but not limited to, all strategy, business development, portfolio management and valuation capabilities and certain compensation, as well as interest income and expense, and gains and losses on investments; (ii) overhead costs primarily associated with our manufacturing operations (which include manufacturing variances associated with production) that are not directly assessed to an operating segment, as business unit (segment) management does not manage these costs; and (iii) our share of earnings from Haleon/the Consumer Healthcare JV.
Reconciling Items––The following items, transactions and events are not allocated to our operating segment results: (i) all amortization of intangible assets; (ii) acquisition-related items, where we incur costs for executing the transaction, integrating the acquired operations and restructuring the combined company; and (iii) certain significant items, representing substantive and/or unusual, and in some cases recurring, items that are evaluated on an individual basis by management and that, either as a result of their nature or size, would not be expected to occur as part of our normal business on a regular basis. Such certain significant items can include, but are not limited to, pension and postretirement actuarial remeasurement gains and losses, non-acquisition-related restructuring costs, net gains and losses on investments in equity securities, as well as costs incurred for legal settlements, asset impairments and disposals of assets or businesses, including, as applicable, any associated transition activities. Beginning in the first quarter of 2022, acquisition-related items may now include purchase accounting impacts that previously were included as part of a reconciling item entitled “Purchase accounting adjustments” that we no longer separately present, such as the incremental charge to cost of sales from the sale of acquired inventory that was written up to fair value, depreciation related to the increase/decrease in fair value of acquired fixed assets, amortization related to the increase in fair value of acquired debt, and the fair value changes for contingent consideration.
Segment Assets––We manage our assets on a total company basis, not by operating segment, as our operating assets are shared or commingled. Therefore, our chief operating decision maker does not regularly review any asset information by operating segment and, accordingly, we do not report asset information by operating segment. Total assets were $197 billion as of December 31, 2022 and $181 billion as of December 31, 2021.
Selected Income Statement Information
The following table provides selected income statement information by reportable segment:
 Revenues
Earnings(a)
Depreciation and Amortization(b)
Year Ended December 31,Year Ended December 31,Year Ended December 31,
(MILLIONS OF DOLLARS)20222021 2020 20222021 202020222021 2020
Reportable Segment:
Biopharma$98,988 $79,557 $40,724 $57,148 $40,647 $27,191 $813 $789 $693 
Other business activities(c)
1,342 1,731 926 (14,370)(13,455)(12,583)626 590 592 
Reconciling Items:
Amortization of intangible assets(3,609)(3,746)(3,395)3,609 3,746 3,395 
Acquisition-related items(832)(139)(98)(20)(21)(17)
Certain significant items(d)
(3,608)1,003 (4,079)36 87 18 
$100,330 $81,288 $41,651 $34,729 $24,311 $7,036 $5,064 $5,191 $4,681 
(a)Income from continuing operations before provision/(benefit) for taxes on income. Biopharma’s earnings include dividend income from our investment in ViiV of $314 million in 2022, $166 million in 2021 and $278 million in 2020. In connection with the organizational changes effective in the third quarter of 2022, certain functions transferred between Biopharma and corporate enabling functions and certain activities were realigned within the GPD organization. We have reclassified $231 million of costs in 2021 and $222 million of costs in 2020 from corporate enabling functions, which are included in Other business activities, to Biopharma to conform to the current period presentation. Amortization of intangible assets is not allocated to our operating segments for all periods presented.
(b)Certain production facilities are shared. Depreciation is allocated based on estimates of physical production.
(c)Other business activities include revenues and costs associated with PC1 and costs that we do not allocate to our operating segments, per above, including acquired IPR&D expenses in the periods presented (see Notes 2A, 2D and 2E). In 2022, earnings include (i) write-offs of $1.3 billion to Cost of sales of inventory related to COVID-19 products that have exceeded or are expected to exceed their approved shelf-lives prior to being used and (ii) charges to Cost of sales of approximately $430 million related to excess raw materials for Paxlovid.
(d)Certain significant items are substantive and/or unusual, and in some cases recurring, items (as noted above). Earnings in 2022 includes, among other items: (i) restructuring charges/(credits) and implementation costs and additional depreciation—asset restructuring of $1.4 billion ($562 million recorded in Selling, informational and administrative expenses and the remaining amount primarily recorded in Restructuring charges and certain acquisition-related costs) and (ii) net losses on equity securities of $1.3 billion recorded in Other (income)/deductions––net. Earnings in 2021 included, among other items: (i) actuarial valuation and other pension and postretirement plan gains of $1.6 billion recorded in Other (income)/deductions––net and (ii) net gains on equity securities of $1.3 billion recorded in Other (income)/deductions––net, partially offset by (iii) restructuring charges/(credits) and implementation costs and additional depreciation—asset restructuring of $1.3 billion ($450 million recorded in Selling, informational and administrative expenses and the remaining amount primarily recorded in Restructuring charges and certain acquisition-related costs). Earnings in 2020 included, among other items: (i) charges of $1.7 billion related to certain asset impairments recorded in Other (income)/deductions––net, (ii) actuarial valuation and other pension and postretirement plan losses of $1.1 billion recorded in Other (income)/deductions––net and (iii) restructuring charges/(credits) and implementation costs and additional depreciation—asset restructuring of $791 million ($197 million recorded in Selling, informational and administrative expenses and the remaining amount primarily recorded in Restructuring charges and certain acquisition-related costs). For additional information, see Notes 3 and 4.

B. Geographic Information
The following summarizes revenues by geographic area:
 Year Ended December 31,
(MILLIONS)202220212020
United States$42,473 $29,746 $21,455 
Developed Europe21,982 18,336 7,788 
Developed Rest of World15,778 12,506 4,036 
Emerging Markets20,097 20,701 8,372 
Revenues
$100,330 $81,288 $41,651 
Revenues exceeded $500 million in each of 24, 21 and 8 countries outside the U.S. in 2022, 2021 and 2020, respectively. The U.S. is the only country to contribute more than 10% of total revenue in 2022, 2021 and 2020. As a percentage of revenues, our largest country outside the U.S. was Japan, which contributed 8% of total revenue in 2022, 9% of total revenue in 2021 and 6% of total revenue in 2020.
We and our collaboration partner, BioNTech, have entered into agreements to supply pre-specified doses of Comirnaty and we have entered into agreements to supply pre-specified treatment courses of Paxlovid with multiple developed and emerging nations around the world and are continuing to deliver doses of Comirnaty and treatment courses of Paxlovid under such agreements. In 2021 and 2022, we principally sold the Comirnaty vaccine and the Paxlovid product directly to government and government sponsored customers. This includes supply agreements entered into in November 2020 and February and May 2021 with the EC for Comirnaty on behalf of the different EU member states and certain other countries. Each EU member state submits its own Comirnaty vaccine order to us and is responsible for payment pursuant to terms of the supply agreements negotiated by the EC.
C. Other Revenue Information
Significant Customers
The following summarizes revenue, as a percentage of total revenues, for our three largest U.S. wholesaler customers:
 Year Ended December 31,
202220212020
McKesson, Inc.
8 %9 %16 %
AmerisourceBergen Corporation
5 %7 %14 %
Cardinal Health, Inc.4 %5 %10 %
Collectively, our three largest U.S. wholesaler customers represented 32%, 24% and 30% of total trade accounts receivable as of December 31, 2022, 2021 and 2020.
Additionally, revenues from the U.S. government represented 23% and 13% of total revenues for 2022 and 2021, respectively, and was not significant for 2020. Accounts receivable from the U.S. government represented 4% and 12% of total trade accounts receivable as of December 31, 2022 and December 31, 2021, respectively. Revenues and accounts receivable from the U.S. government primarily represent sales of Paxlovid and Comirnaty in 2022, and sales of Comirnaty in 2021.

Significant Product Revenues
The following provides detailed revenue information for several of our major products:
(MILLIONS)Year Ended December 31,
PRODUCTPRIMARY INDICATION OR CLASS202220212020
TOTAL REVENUES$100,330 $81,288 $41,651 
GLOBAL BIOPHARMACEUTICALS BUSINESS (BIOPHARMA)(a)
$98,988 $79,557 $40,724 
Primary Care$73,023 $52,029 $15,577 
Comirnaty direct sales and alliance revenues(b)
Active immunization to prevent COVID-19
37,806 36,781 154 
Paxlovid
COVID-19 in certain high-risk patients
18,933 76 — 
Eliquis alliance revenues and direct sales
Nonvalvular atrial fibrillation, deep vein thrombosis, pulmonary embolism6,480 5,970 4,949 
Prevnar familyActive immunization to prevent invasive disease caused by Streptococcus pneumoniae serotypes6,337 5,272 5,850 
Premarin family
Symptoms of menopause455 563 680 
BMP2
Development of bone and cartilage277 266 274 
Nimenrix
Active immunization against invasive meningococcal ACWY disease268 193 221 
Nurtec ODT/VyduraAcute treatment of migraine and prevention of episodic migraine213 — — 
FSME-IMMUN/TicoVacActive immunization to prevent tick-borne encephalitis disease200 185 196 
Toviaz
Overactive bladder146 238 252 
TrumenbaActive immunization to prevent invasive disease caused by Neisseria meningitidis group B123 118 112 
Chantix/Champix
An aid to smoking cessation treatment in adults 18 years of age or older
8 398 919 
All other Primary CareVarious1,778 1,967 1,972 
Specialty Care$13,833 $15,194 $14,280 
Vyndaqel familyATTR-CM and polyneuropathy2,447 2,015 1,288 
Xeljanz
RA, PsA, UC, active polyarticular course juvenile idiopathic arthritis, ankylosing spondylitis1,796 2,455 2,437 
Enbrel (Outside the U.S. and Canada)
RA, juvenile idiopathic arthritis, PsA, plaque psoriasis, pediatric plaque psoriasis, ankylosing spondylitis and nonradiographic axial spondyloarthritis
1,003 1,185 1,350 
Sulperazon
Bacterial infections786 683 618 
Inflectra/Remsima
Crohn’s disease, pediatric Crohn’s disease, UC, pediatric UC, RA in combination with methotrexate, ankylosing spondylitis, PsA and plaque psoriasis
532 657 659 
Ig Portfolio(c)
Various491 430 376 
BeneFIXHemophilia B425 438 454 
ZaviceftaBacterial infections412 413 212 
Genotropin
Replacement of human growth hormone360 389 427 
ZithromaxBacterial infections331 278 276 
MedrolAnti-inflammatory glucocorticoid328 432 402 
Fragmin
Treatment/prevention of venous thromboembolism269 305 252 
Somavert
Acromegaly268 277 277 
Refacto AF/Xyntha
Hemophilia A239 304 370 
Vfend
Fungal infections225 267 270 
OxbrytaSickle cell disease73 — — 
(MILLIONS)Year Ended December 31,
PRODUCTPRIMARY INDICATION OR CLASS202220212020
All other Anti-infectives
Various1,471 1,835 1,679 
All other Specialty CareVarious2,377 2,830 2,934 
Oncology$12,132 $12,333 $10,867 
IbranceHR-positive/HER2-negative metastatic breast cancer5,120 5,437 5,392 
Xtandi alliance revenuesmCRPC, nmCRPC, mCSPC1,198 1,185 1,024 
Inlyta
Advanced RCC1,003 1,002 787 
Bosulif
Philadelphia chromosome–positive chronic myelogenous leukemia575 540 450 
ZirabevTreatment of mCRC; unresectable, locally advanced, recurrent or metastatic NSCLC; recurrent glioblastoma; metastatic RCC; and persistent, recurrent or metastatic cervical cancer562 444 143 
Xalkori
ALK-positive and Proto-Oncogene 1, Receptor Tyrosine Kinase-positive advanced NSCLC465 493 544 
RuxienceNon-hodgkin’s lymphoma, chronic lymphocytic leukemia, granulomatosis with polyangiitis (Wegener’s Granulomatosis) and microscopic polyangiitis458 491 170 
RetacritAnemia394 444 386 
Sutent
Advanced and/or metastatic RCC, adjuvant RCC, refractory gastrointestinal stromal tumors (after disease progression on, or intolerance to, imatinib mesylate) and advanced pancreatic neuroendocrine tumor
347 673 819 
Lorbrena
ALK-positive metastatic NSCLC
343 266 204 
Bavencio alliance revenuesLocally advanced or metastatic urothelial carcinoma; metastatic Merkel cell carcinoma; immunotherapy and tyrosine kinase inhibitor combination for patients with advanced RCC271 178 80 
AromasinPost-menopausal early and advanced breast cancer248 211 148 
BesponsaRelapsed or refractory B-cell acute lymphoblastic leukemia 219 192 182 
Trazimera
HER2-positive breast cancer and metastatic stomach cancers
203 197 98 
Braftovi
In combination with Mektovi for metastatic melanoma in patients with a BRAFV600E/K mutation and, in combination with Erbitux® (cetuximab)(d), for the treatment of BRAFV600E-mutant mCRC after prior therapy
194 187 160 
Mektovi
In combination with Braftovi for metastatic melanoma in patients with a BRAFV600E/K mutation
176 155 142 
All other OncologyVarious357 238 137 
PFIZER CENTREONE(a)
$1,342 $1,731 $926 
Total Alliance revenues included above$8,537 $7,652 $5,418 
(a)See Note 1A for information about our recent organizational changes. PC1 includes revenues from our contract manufacturing, including certain Comirnaty-related manufacturing activities performed on behalf of BioNTech ($188 million for 2022, $320 million for 2021, and $0 million for 2020), and revenues from our active pharmaceutical ingredient sales operation, as well as revenues related to our manufacturing and supply agreements with former legacy Pfizer businesses/partnerships, including but not limited to, transitional manufacturing and supply agreements with Viatris following the spin-off of the Upjohn Business.
(b)Excludes revenues for certain Comirnaty-related manufacturing activities performed on behalf of BioNTech, which are included in the PC1 contract development and manufacturing organization.
(c)Immunoglobulin (Ig) portfolio include the revenues from Panzyga, Octagam and Cutaquig.
(d)Erbitux® is a registered trademark of ImClone LLC.
Remaining Performance Obligations––Contracted revenue expected to be recognized from remaining performance obligations for firm orders in long-term contracts to supply Comirnaty to our customers totaled approximately $15 billion as of December 31, 2022, which includes amounts received in advance and deferred, as well as amounts that will be invoiced as we deliver these products to our customers in future periods. Of this amount, current contract terms provide for expected delivery of product with contracted revenue in 2023 and 2024, the timing and terms of which may be renegotiated. Remaining performance obligations are based on foreign exchange rates as of the end of our fiscal fourth quarter of 2022 and exclude arrangements with an original expected contract duration of less than one year.
Deferred Revenues––Our deferred revenues primarily relate to advance payments received or receivable from various government or government sponsored customers in international markets for supply of Comirnaty. The deferred revenues related to Comirnaty total $2.5 billion as of December 31, 2022, with $2.4 billion and $77 million recorded in current liabilities and noncurrent liabilities, respectively. The deferred revenues related to Comirnaty totaled $3.3 billion as of December 31, 2021, with $3.0 billion and $249 million recorded in current liabilities and noncurrent liabilities, respectively. The decrease in Comirnaty deferred revenues during 2022 was primarily the result of amounts recognized in Revenues as we delivered the product to our customers and the impact of foreign exchange, partially offset by additional advance payments received as we entered into new or amended contracts. During 2022, we recognized revenue of $3.1 billion that was included in the balance of Comirnaty deferred revenues as of December 31, 2021. The Comirnaty deferred revenues as of December 31, 2022 will be recognized in Revenues proportionately as we transfer control of the product to our customers and satisfy our performance obligation under the contracts, with the amounts included in current liabilities expected to be recognized in Revenues within the next 12 months, and the amounts included in noncurrent liabilities expected to be recognized in Revenues in 2024. Deferred revenues associated with contracts for other products were not significant as of December 31, 2022 or 2021.
v3.22.4
Basis of Presentation and Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation The consolidated financial statements include the accounts of our parent company and all subsidiaries and are prepared in accordance with U.S. GAAP.
Consolidation The decision of whether or not to consolidate an entity for financial reporting purposes requires consideration of majority voting interests, as well as effective economic or other control over the entity. Typically, we do not seek control by means other than voting interests. For subsidiaries operating outside the U.S., the financial information is included as of and for the year ended November 30 for each year presented. Pfizer's fiscal year-end for U.S. subsidiaries is as of and for the year ended December 31 for each year presented. Substantially all unremitted earnings of international subsidiaries are free of legal and contractual restrictions. All significant transactions among our subsidiaries have been eliminated.
Segment Reporting Beginning in the fourth quarter of 2021, we reorganized our commercial operations and began to manage our commercial operations through a global structure consisting of two operating segments, each led by a single manager: Biopharma, our innovative science-based biopharmaceutical business, and PC1, our global contract development and manufacturing organization and a leading supplier of specialty active pharmaceutical ingredients.
New Accounting Standard Adopted in 2022 New Accounting Standard Adopted in 2022On January 1, 2022, we early adopted a new accounting standard for contract assets and contract liabilities acquired in a business combination. Under the new standard, acquired contract assets and contract liabilities are required to be recognized and measured by the acquirer on the acquisition date in accordance with Accounting Standards Codification 606. This new guidance generally results in the acquirer recognizing contract assets and contract liabilities at the same amounts that were recorded by the acquiree. Previously, these amounts were recognized by the acquirer at fair value as of the acquisition date. We adopted this new standard on a prospective basis and there was no impact to our consolidated financial statements.
Estimates and Assumptions Estimates and Assumptions
In preparing these financial statements, we use certain estimates and assumptions that affect reported amounts and disclosures. These estimates and assumptions can impact all elements of our financial statements. For example, in the consolidated statements of income, estimates are used when accounting for deductions from revenues, determining the cost of inventory that is sold, allocating cost in the form of depreciation and amortization, and estimating restructuring charges and the impact of contingencies, as well as determining provisions for taxes on income. On the consolidated balance sheets, estimates are used in determining the valuation and recoverability of assets, and in determining the reported amounts of liabilities, all of which also impact the consolidated statements of income. Certain estimates of fair value and amounts recorded in connection with acquisitions, revenue deductions, impairment reviews, restructuring-associated charges, investments and financial instruments, valuation allowances, pension and postretirement benefit plans, contingencies, share-based compensation, and other calculations can result from a complex series of judgments about future events and uncertainties and can rely heavily on estimates and assumptions.
Our estimates are often based on complex judgments and assumptions that we believe to be reasonable, but that can be inherently uncertain and unpredictable. If our estimates and assumptions are not representative of actual outcomes, our results could be materially impacted. As future events and their effects cannot be determined with precision, our estimates and assumptions may prove to be incomplete or inaccurate, or unanticipated events and circumstances may occur that might cause us to change those estimates and assumptions. We are subject to risks and uncertainties that may cause actual results to differ from estimated amounts, such as changes in the healthcare environment, competition, litigation, legislation and regulations. We regularly evaluate our estimates and assumptions using historical experience and expectations about the future. We adjust our estimates and assumptions when facts and circumstances indicate the need for change.
Acquisitions Acquisitions
Our consolidated financial statements include the operations of acquired businesses after the completion of the acquisitions. We account for acquired businesses using the acquisition method of accounting, which requires, among other things, that most assets acquired and liabilities assumed be recognized at their estimated fair values as of the acquisition date and that the fair value of acquired IPR&D be recorded on the balance sheet. Transaction costs are expensed as incurred. Any excess of the consideration transferred over the assigned values of the net assets acquired is recorded as goodwill. When we acquire net assets that do not constitute a business, as defined in U.S. GAAP, no goodwill is recognized and acquired IPR&D is expensed in Acquired in-process research and development expenses.
Contingent consideration in a business combination is included as part of the acquisition cost and is recognized at fair value as of the acquisition date. Fair value is generally estimated by using a probability-weighted discounted cash flow approach. See Note 16D. Any liability resulting from contingent consideration is remeasured to fair value at each reporting date until the contingency is resolved. These changes in fair value are recognized in earnings in Other (income)/deductions––net.
Fair Value Fair Value
We measure certain assets and liabilities at fair value, either upon initial recognition or for subsequent accounting or reporting. We estimate fair value using an exit price approach, which requires, among other things, that we determine the price that would be received to sell an asset or paid to transfer a liability in an orderly market. The determination of an exit price is considered from the perspective of market participants, considering the highest and best use of non-financial assets and, for liabilities, assuming that the risk of non-performance will be the same before and after the transfer.
When estimating fair value, depending on the nature and complexity of the asset or liability, we may use one or all of the following techniques:
•Income approach, which is based on the present value of a future stream of net cash flows.
•Market approach, which is based on market prices and other information from market transactions involving identical or comparable assets or liabilities.
•Cost approach, which is based on the cost to acquire or construct comparable assets, less an allowance for functional and/or economic obsolescence.
Our fair value methodologies depend on the following types of inputs:
•Quoted prices for identical assets or liabilities in active markets (Level 1 inputs).
•Quoted prices for similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are directly or indirectly observable, or inputs that are derived principally from, or corroborated by, observable market data by correlation or other means (Level 2 inputs).
•Unobservable inputs that reflect estimates and assumptions (Level 3 inputs).
The following inputs and valuation techniques are used to estimate the fair value of our financial assets and liabilities:
•Available-for-sale debt securities—third-party matrix-pricing model that uses significant inputs derived from or corroborated by observable market data and credit-adjusted yield curves.
•Equity securities with readily determinable fair values—quoted market prices and observable NAV prices.
•Derivative assets and liabilities—third-party matrix-pricing model that uses inputs derived from or corroborated by observable market data. Where applicable, these models use market-based observable inputs, including interest rate yield curves to discount future cash flow amounts, and forward and spot prices for currencies. The credit risk impact to our derivative financial instruments was not significant.
•Money market funds—observable NAV prices.
We periodically review the methodologies, inputs and outputs of third-party pricing services for reasonableness. Our procedures can include, for example, referencing other third-party pricing models, monitoring key observable inputs (like benchmark interest rates) and selectively performing test-comparisons of values with actual sales of financial instruments.
Foreign Currency Translation Foreign Currency TranslationFor most of our international operations, local currencies have been determined to be the functional currencies. We translate functional currency assets and liabilities to their U.S. dollar equivalents at exchange rates in effect as of the balance sheet date and income and expense amounts at average exchange rates for the period. The U.S. dollar effects that arise from changing translation rates are recorded in Other comprehensive income/(loss). The effects of converting non-functional currency monetary assets and liabilities into the functional currency are recorded in Other (income)/deductions––net. For operations in highly inflationary economies, we translate monetary items at rates in effect as of the balance sheet date, with translation adjustments recorded in Other (income)/deductions––net, and we translate non-monetary items at historical rates.
Revenues and Collaborative Arrangements Revenue Recognition––We record revenues from product sales when there is a transfer of control of the product from us to the customer. We typically determine transfer of control based on when the product is shipped or delivered and title passes to the customer. For certain contracts, the finished product may temporarily be stored at our or our third-party subcontractors’ locations under a bill-and-hold arrangement. Revenue is recognized on bill-and-hold arrangements at the point in time when the customer obtains control of the product and all of the following criteria have been met: the arrangement is substantive; the product is identified separately as belonging to the customer; the product is ready for physical transfer to the customer; and we do not have the ability to use the product or direct it to another customer. In determining when the customer obtains control of the product, we consider certain indicators, including whether we have a present right to payment from
the customer, whether title and/or significant risks and rewards of ownership have transferred to the customer and whether customer acceptance has been received.
Our Sales Contracts––Sales on credit are typically under short-term contracts. Collections are based on market payment cycles common in various markets, with shorter cycles in the U.S. Sales are adjusted for sales allowances, chargebacks, rebates and sales returns and cash discounts. Sales returns occur due to LOE, product recalls or a changing competitive environment.
Deductions from Revenues––Our gross product revenues are subject to a variety of deductions, which generally are estimated and recorded in the same period that the revenues are recognized. Such variable consideration represents chargebacks, rebates, sales allowances and sales returns. These deductions represent estimates of the related obligations and, as such, knowledge and judgment is required when estimating the impact of these revenue deductions on gross sales for a reporting period.
Provisions for pharmaceutical sales returns––Provisions are based on a calculation for each market that incorporates the following, as appropriate: local returns policies and practices; historical returns as a percentage of sales; an understanding of the reasons for past returns; estimated shelf life by product; an estimate of the amount of time between shipment and return or lag time; and any other factors that could impact the estimate of future returns, such as LOE, product recalls or a changing competitive environment. Generally, returned products are destroyed, and customers are refunded the sales price in the form of a credit.
We record sales incentives as a reduction of revenues at the time the related revenues are recorded or when the incentive is offered, whichever is later. We estimate the cost of our sales incentives based on our historical experience with similar incentives programs to predict customer behavior.
The following outlines our common sales arrangements:
•Customers––Our prescription biopharmaceutical products, with the exception of Paxlovid, are sold principally to wholesalers, but we also sell directly to retailers, hospitals, clinics, government agencies and pharmacies. In 2022, we principally sold Paxlovid to government agencies. In the U.S., we primarily sell our vaccines directly to the federal government, CDC, wholesalers, individual provider offices, retail pharmacies and integrated delivery systems. Outside the U.S., we primarily sell our vaccines to government and non-government institutions. Prescription pharmaceutical products that ultimately are used by patients are generally covered under governmental programs, managed care programs and insurance programs, including those managed through PBMs, and are subject to sales allowances and/or rebates payable directly to those programs. Those sales allowances and rebates are generally negotiated, but government programs may have legislated amounts by type of product (e.g., patented or unpatented).
Specifically:
•In the U.S., we sell our products principally to distributors and hospitals. We also have contracts with managed care programs or PBMs and legislatively mandated contracts with the federal and state governments under which we provide rebates based on medicines utilized by the lives they cover. We record provisions for Medicare, Medicaid, and performance-based contract pharmaceutical rebates based upon our experience ratio of rebates paid and actual prescriptions written during prior periods. We apply the experience ratio to the respective period’s sales to determine the rebate accrual and related expense. This experience ratio is evaluated regularly to ensure that the historical trends are as current as practicable. We estimate discounts on branded prescription drug sales to Medicare Part D participants in the Medicare “coverage gap,” also known as the “doughnut hole,” based on the historical experience of beneficiary prescriptions and consideration of the utilization that is expected to result from the discount in the coverage gap. We evaluate this estimate regularly to ensure that the historical trends and future expectations are as current as practicable. For performance-based contract rebates, we also consider current contract terms, such as changes in formulary status and rebate rates.
•Outside the U.S., the majority of our pharmaceutical sales allowances are contractual or legislatively mandated and our estimates are based on actual invoiced sales within each period, which reduces the risk of variations in the estimation process. In certain European countries, rebates are calculated on the government’s total unbudgeted pharmaceutical spending or on specific product sales thresholds and we apply an estimated allocation factor against our actual invoiced sales to project the expected level of reimbursement. We obtain third-party information that helps us to monitor the adequacy of these accruals.
•Provisions for pharmaceutical chargebacks (primarily reimbursements to U.S. wholesalers for honoring contracted prices and legislated discounts to third parties) closely approximate actual amounts incurred, as we settle these deductions generally within two to five weeks of incurring the liability.
We recorded direct product sales and/or Alliance revenues of more than $1 billion for each of ten products in 2022, for each of nine products in 2021 and for each of seven products in 2020. In the aggregate, these direct product sales and/or alliance product revenues represented 82% of our revenues in 2022, 75% of our revenues in 2021 and 54% of our revenues in 2020. See Note 17C for additional information. The loss or expiration of intellectual property rights can have a significant adverse effect on our revenues as our contracts with customers will generally be at lower selling prices and lower volumes due to added generic competition. We generally provide for higher sales returns during the period in which individual markets begin to near the loss or expiration of intellectual property rights.
Taxes collected from customers relating to product sales and remitted to governmental authorities are excluded from Revenues.Collaborative Arrangements
Payments to and from our collaboration partners are presented in our consolidated statements of income based on the nature of the arrangement (including its contractual terms), the nature of the payments and applicable accounting guidance. Under co-promotion agreements, we record the amounts received for our share of gross profits from our collaboration partners as Alliance revenues, a component of Revenues, when our collaboration partners are the principal in the transaction and we receive a share of their net sales or profits. Alliance revenues are recorded as we perform co-promotion activities for the collaboration and the collaboration partners sell the products to their customers. The related expenses for selling and marketing these products including reimbursements to or from our collaboration partners for these costs are included in Selling, informational and administrative expenses. In collaborative arrangements where we manufacture a product for our collaboration partners, we record revenues when we transfer control of the product to our collaboration partners. In collaboration arrangements where we are the principal in the transaction, we record amounts paid to collaboration partners for their share of net sales or profits earned, and all royalty payments to collaboration partners as Cost of sales. Royalty payments received from collaboration partners are included in Other (income)/deductions—net.
Reimbursements to or from our collaboration partners for development costs are typically recorded in Research and development expenses. Upfront payments and pre-approval milestone payments due from us to our collaboration partners in development stage collaborations are recorded as Acquired in-process research and development expenses. Milestone payments due from us to our collaboration partners after regulatory approval has been attained for a medicine are recorded in Identifiable intangible assets—Developed technology rights. Upfront and pre-approval milestone payments earned from our collaboration partners by us are recognized in Other (income)/deductions—net over the development period for the products, when our performance obligations include providing R&D services to our collaboration partners. Upfront, pre-approval and post-approval milestone payments earned by us may be recognized in Other (income)/deductions—net immediately when earned or over other periods depending upon the nature of our performance obligations in the applicable collaboration. Where the milestone event is regulatory approval for a medicine, we generally recognize milestone payments due to us in the transaction price when regulatory approval in the applicable jurisdiction has been attained. We may recognize milestone payments due to us in the transaction price earlier than the milestone event in certain circumstances when recognition of the income would not be probable of a significant reversal.
Trade Accounts Receivable
Trade Accounts Receivable—Trade accounts receivable are stated at their net realizable value. The allowance for credit losses reflects our best estimate of expected credit losses of the receivables portfolio determined on the basis of historical experience, current information, and forecasts of future economic conditions. In developing the estimate for expected credit losses, trade accounts receivables are segmented into pools of assets depending on market (U.S. versus international), delinquency status, and customer type (high risk versus low risk and government versus non-government), and fixed reserve percentages are established for each pool of trade accounts receivables.
In determining the reserve percentages for each pool of trade accounts receivables, we considered our historical experience with certain customers and customer types, regulatory and legal environments, country and political risk, and other relevant current and future forecasted macroeconomic factors. These credit risk indicators are monitored on a quarterly basis to determine whether there have been any changes in the economic environment that would indicate the established reserve percentages should be adjusted, and are considered on a regional basis to reflect more geographic-specific metrics. Additionally, write-offs and recoveries of customer receivables are tracked against collections on a quarterly basis to determine whether the reserve percentages remain appropriate. When management becomes aware of certain customer-specific factors that impact credit risk, specific allowances for these known troubled accounts are recorded. Trade accounts receivable are written off after all reasonable means to collect the full amount (including litigation, where appropriate) have been exhausted.
During 2022 and 2021, additions to the allowance for credit losses, write-offs and recoveries of customer receivables were not material to our consolidated financial statements.
Cost of Sales and Inventories Cost of Sales and InventoriesInventories are recorded at the lower of cost or net realizable value. The cost of finished goods, work in process and raw materials is determined using average actual cost. We regularly review our inventories for impairment and reserves are established when necessary. Inventories that are not expected to be sold within 12 months are classified as Other noncurrent assets. See Note 8A.
Selling, Informational and Administrative Expenses Selling, Informational and Administrative ExpensesSelling, informational and administrative costs are expensed as incurred. Among other things, these expenses include the internal and external costs of marketing, advertising, shipping and handling, IT and legal defense.
Research and Development Expenses Research and Development ExpensesR&D costs are expensed as incurred. These expenses include the costs of our proprietary R&D efforts, as well as R&D activities performed in connection with certain licensing arrangements.
Acquired In-Process Research and Development Expenses Acquired In-Process Research and Development ExpensesBefore a compound receives regulatory approval, we record upfront and milestone payments we make to third parties under licensing and collaboration arrangements as expense. Upfront payments are recorded when incurred, and milestone payments are recorded when the specific milestone has been achieved. Once a compound receives regulatory approval, we record any milestone payments in Identifiable intangible assets, less accumulated amortization and, unless the asset is determined to have an indefinite life, we typically amortize the payments on a straight-line basis over the remaining agreement term or the expected product life cycle, whichever is shorter. In the first quarter of 2022, we began reporting acquired IPR&D expense as a separate line item in our consolidated statements of income. Acquired in-process research and development expenses includes costs incurred in connection with (a) all upfront and milestone payments on collaboration and in-license agreements, including premiums on equity securities and (b) asset acquisitions of acquired IPR&D. These costs were previously recorded in Research and development expenses.
Property, Plant and Equipment Property, plant and equipment, less accumulated depreciation—These assets are recorded at cost, including any significant improvements after purchase, less accumulated depreciation. Property, plant and equipment assets, other than land and construction in progress, are depreciated on a straight-line basis over the estimated useful life of the individual assets. Depreciation begins when the asset is ready for its intended use. For tax purposes, accelerated depreciation methods are used as allowed by tax laws.
Intangible Assets and Goodwill Identifiable intangible assets, less accumulated amortization—These assets are recorded at fair value at acquisition. Intangible assets with finite lives are amortized on a straight-line basis over their estimated useful lives. Intangible assets with indefinite lives are not amortized until a useful life can be determined.
•Goodwill—Goodwill represents the excess of the consideration transferred for an acquired business over the assigned values of its net assets. Goodwill is not amortized.
Amortization of finite-lived acquired intangible assets is included in Amortization of intangible assets.
Specifically:
•For finite-lived intangible assets, such as developed technology rights, and for other long-lived assets, such as property, plant and equipment, whenever impairment indicators are present, we calculate the undiscounted value of the projected cash flows for the asset, or asset group, and compare this estimated amount to the carrying amount. If the carrying amount is greater, we record an impairment loss for the excess of book value over fair value. In addition, in all cases of an impairment review, we reevaluate the remaining useful lives of the assets and modify them, as appropriate.
•For indefinite-lived intangible assets, such as brands and IPR&D assets, when necessary, we determine the fair value of the asset and record an impairment loss, if any, for the excess of book value over fair value. In addition, in all cases of an impairment review other than for IPR&D assets, we re-evaluate whether continuing to characterize the asset as indefinite-lived is appropriate.
•For goodwill, when necessary, we determine the fair value of each reporting unit and record an impairment loss, if any, for the excess of the book value of the reporting unit over the implied fair value.
Property, Plant and Equipment, Impairment We review our long-lived assets for impairment indicators throughout the year. We perform impairment testing for indefinite-lived intangible assets and goodwill at least annually and for all other long-lived assets whenever impairment indicators are present. When necessary, we record impairments of long-lived assets for the amount by which the fair value is less than the carrying value of these assets.
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives
We may incur restructuring charges in connection with acquisitions when we implement plans to restructure and integrate the acquired operations or in connection with our cost-reduction and productivity initiatives.
•In connection with acquisition activity, we typically incur costs associated with executing the transactions, integrating the acquired operations (which may include expenditures for consulting and the integration of systems and processes), and restructuring the combined company (which may include charges related to employees, assets and activities that will not continue in the combined company); and
•In connection with our cost-reduction/productivity initiatives, we typically incur costs and charges for site closings and other facility rationalization actions, workforce reductions and the expansion of shared services, including the development of global systems.
Included in Restructuring charges and certain acquisition-related costs are all restructuring charges, as well as certain other costs associated with acquiring and integrating an acquired business. If the restructuring action results in a change in the estimated useful life of an asset, that incremental impact is classified in Cost of sales, Selling, informational and administrative expenses and/or Research and development expenses, as appropriate. Employee termination costs are generally recorded when the actions are probable and estimable and include accrued severance benefits, pension and postretirement benefits, many of which may be paid out during periods after termination. Transaction costs, such as banking, legal, accounting and other similar costs incurred in connection with a business acquisition are expensed as incurred.
Our business and platform functions may be impacted by these actions, including sales and marketing, manufacturing and R&D, as well as our corporate enabling functions (such as digital, global real estate operations, legal, finance, human resources, worldwide public affairs, compliance and worldwide procurement).
Cash Equivalents Cash equivalents include items almost as liquid as cash, such as certificates of deposit and time deposits with maturity periods of three months or less when purchased. If items meeting this definition are part of a larger investment pool, we classify them as Short-term investments.
Statement of Cash Flows Cash flows for financial instruments designated as fair value or cash flow hedges may be included in operating, investing or financing activities, depending on the classification of the items being hedged. Cash flows for financial instruments designated as net investment hedges are classified according to the nature of the hedging instrument. Cash flows for financial instruments that do not qualify for hedge accounting treatment are classified according to their purpose and accounting nature.
Investments Investments and Derivative Financial Instruments
The classification of an investment depends on the nature of the investment, our intent and ability to hold the investment, and the degree to which we may exercise influence. Our investments are primarily comprised of the following:
•Public equity securities with readily determinable fair values, which are carried at fair value, with changes in fair value reported in Other (income)/deductions—net.
•Available-for-sale debt securities, which are carried at fair value, with changes in fair value reported in Other comprehensive income/(loss) until realized.
•Held-to-maturity debt securities, which are carried at amortized cost.
•Private equity securities without readily determinable fair values and where we have no significant influence are measured at cost minus any impairment and plus or minus adjustments resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer.
•For equity investments in common stock or in-substance common stock where we have significant influence over the financial and operating policies of the investee, we use the equity-method of accounting. Under the equity-method, we record our share of the investee’s income and expenses in Other (income)/deductions—net. The excess of the cost of the investment over our share of the underlying equity in the net assets of the investee as of the acquisition date is allocated to the identifiable assets and liabilities of the investee, with any remaining excess amount allocated to goodwill. Such investments are initially recorded at cost, which is the fair value of consideration paid and typically does not include contingent consideration.
Realized gains or losses on sales of investments are determined by using the specific identification cost method.
We regularly evaluate all of our financial assets for impairment. For investments in debt and equity, if and when a decline in fair value is determined, an impairment charge is recorded and a new cost basis in the investment is established. For equity-method investments, an impairment charge is recorded only if and when a decline in fair value is determined to be other-than-temporary.
Derivative Financial Instruments Derivative financial instruments are carried at fair value in certain balance sheet categories (see Note 7A), with changes in fair value reported in net income or, for certain qualifying hedging relationships, in Other comprehensive income/(loss)
Tax Assets and Liabilities and Income Tax Contingencies Tax Assets and Liabilities and Income Tax Contingencies
Tax Assets and Liabilities––Current tax assets primarily include (i) tax effects for intercompany transfers of inventory within our combined group, which are recognized in the consolidated statements of income when the inventory is sold to a third party and (ii) income tax receivables that are expected to be recovered either via refunds from taxing authorities or reductions to future tax obligations.

Deferred tax assets and liabilities are recognized for the expected future tax consequences of differences between the financial reporting and tax bases of assets and liabilities using enacted tax rates and laws. We provide a valuation allowance when we believe that our deferred tax assets are not recoverable based on an assessment of estimated future taxable income that incorporates ongoing, prudent and feasible tax-planning strategies, that would be implemented, if necessary, to realize the deferred tax assets. Amounts recorded for valuation allowances requires judgments about future income which can depend heavily on estimates and assumptions. All deferred tax assets and liabilities within the same tax jurisdiction are presented as a net amount in the noncurrent section of our consolidated balance sheet.
The TCJA subjects a U.S. shareholder to current tax on global intangible low-taxed income earned by certain foreign subsidiaries. The FASB Staff Q&A, Topic 740, No. 5, Accounting for Global Intangible Low-Taxed Income, states that we are permitted to make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as global intangible low-taxed income in future years or provide for the tax expense related to such income in the year the tax is incurred. We elected to recognize deferred taxes for temporary differences expected to reverse as global intangible low-taxed income in future years.

Other non-current tax assets primarily represent our estimate of the potential tax benefits in one tax jurisdiction that could result from the payment of income taxes in another tax jurisdiction. These potential benefits generally result from cooperative efforts among taxing authorities, as required by tax treaties to minimize double taxation, commonly referred to as the competent authority process. The recoverability of these assets, which we believe to be more likely than not, is dependent upon the actual payment of taxes in one tax jurisdiction and, in some cases, the successful petition for recovery in another tax jurisdiction.
Other taxes payable as of December 31, 2022 and 2021 include liabilities for uncertain tax positions and the noncurrent portion of the repatriation tax liability for which we elected payment over eight years through 2026. For additional information, see Note 5D for uncertain tax positions and Note 5A for the repatriation tax liability and other estimates and assumptions in connection with the TCJA.

Income Tax Contingencies––We account for income tax contingencies using a benefit recognition model. If we consider that a tax position is more likely than not to be sustained upon audit, based solely on the technical merits of the position, we recognize all or a portion of the benefit. We measure the benefit by determining the amount that is greater than 50% likely of being realized upon settlement, presuming that the tax position is examined by the taxing authority with full knowledge of all relevant information.

We regularly monitor our position and subsequently recognize the unrecognized tax benefit: (i) if there are changes in tax law, analogous case law or there is new information that sufficiently raise the likelihood of prevailing on the technical merits of the position to “more likely than not”; (ii) if the statute of limitations expires; or (iii) if there is a completion of an audit resulting in a favorable settlement of that tax year with the appropriate agency. Liabilities for uncertain tax positions are classified as current only when we expect to pay cash within the next 12 months. Interest and penalties, if any, are recorded in Provision/(benefit) for taxes on income and are classified on our consolidated balance sheet with the related tax liability.

Our assessments are based on estimates and assumptions that have been deemed reasonable by management, but our estimates of unrecognized tax benefits and potential tax benefits may not be representative of actual outcomes, and variation from such estimates could
materially affect our financial statements in the period of settlement or when the statutes of limitations expire, as we treat these events as discrete items in the period of resolution.
Pension and Postretirement Benefit Plans Pension and Postretirement Benefit PlansThe majority of our employees worldwide are covered by defined benefit pension plans, defined contribution plans or both. In the U.S., we have both IRC-qualified and supplemental (non-qualified) defined benefit plans and defined contribution plans, as well as other postretirement benefit plans consisting primarily of medical insurance for retirees and their eligible dependents. Net periodic pension and postretirement benefit costs other than the service costs are recognized in Other (income)/deductions—net. We immediately recognize actuarial gains and losses arising from the remeasurement of our pension and postretirement plans (MTM Accounting). Each time a pension or postretirement plan is remeasured, the actuarial gain or loss is recognized immediately and classified as Other (income)/deductions––net. We recognize the overfunded or underfunded status of each of our defined benefit plans as an asset or liability. The obligations are generally measured at the actuarial present value of all benefits attributable to employee service rendered, as provided by the applicable benefit formula. Our pension and other postretirement obligations may be determined using assumptions such as discount rate, expected annual rate of return on plan assets, expected employee turnover and participant mortality. For our pension plans, the obligation may also include assumptions as to future compensation levels. For our other postretirement benefit plans, the obligation may include assumptions as to the expected cost of providing medical insurance benefits, as well as the extent to which those costs are shared with the employee or others (such as governmental programs). Plan assets are measured at fair value.
Legal and Environmental Contingencies Legal and Environmental ContingenciesWe and certain of our subsidiaries are subject to numerous contingencies arising in the ordinary course of business, such as patent litigation, product liability and other product-related litigation, commercial and other asserted or unasserted matters, environmental claims and proceedings, government investigations and guarantees and indemnifications. In assessing contingencies related to legal and environmental proceedings that are pending against the Company, or unasserted claims that are probable of being asserted, we record accruals for these contingencies to the extent that we conclude that a loss is both probable and reasonably estimable. If some amount within a range of loss appears to be a better estimate than any other amount within the range, we accrue that amount. Alternatively, when no amount within a range of loss appears to be a better estimate than any other amount, we accrue the lowest amount in the range. We record anticipated recoveries under existing insurance contracts when recovery is assured.
Share-Based Payments Share-Based PaymentsOur compensation programs can include share-based payments. Generally, grants under share-based payment programs are accounted for at fair value and these fair values are generally amortized on a straight-line basis or on an accelerated attribution approach over the vesting terms with the related costs recorded in Cost of sales, Selling, informational and administrative expenses and/or Research and development expenses, as appropriate.
Leases
We lease real estate, fleet, and equipment for use in our operations. Our leases generally have lease terms of 1 to 30 years, some of which include options to terminate or extend leases for up to 5 to 10 years or on a month-to-month basis. We include options that are reasonably certain to be exercised as part of the determination of lease terms. We may negotiate termination clauses in anticipation of any changes in market conditions, but generally these termination options have not been exercised. Residual value guarantees are generally not included within our operating leases with the exception of some fleet leases. In addition to base rent payments, the leases may require us to pay directly for taxes and other non-lease components, such as insurance, maintenance and other operating expenses, which may be dependent on usage or vary month-to-month. Variable lease payments amounted to $536 million in 2022, $381 million in 2021 and $380 million in 2020. We elected the practical expedient to not separate non-lease components from lease components in calculating the amounts of ROU assets and lease liabilities for all underlying asset classes.
We determine if an arrangement is a lease at inception of the contract and we perform the lease classification test as of the lease commencement date. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our estimated incremental borrowing rate based on the information available at commencement date in determining the present value of future payments.
v3.22.4
Basis of Presentation and Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Information About Balance Sheet Classification of Accruals
Our accruals for Medicare, Medicaid and related state program and performance-based contract rebates, chargebacks, sales allowances and sales returns and cash discounts are as follows:
  As of December 31,
(MILLIONS)20222021
Reserve against Trade accounts receivable, less allowance for doubtful accounts
$1,200 $1,077 
Other current liabilities:
Accrued rebates4,479 3,811 
Other accruals430 528 
Other noncurrent liabilities
612 433 
Total accrued rebates and other sales-related accruals$6,722 $5,850 
v3.22.4
Acquisitions, Divestitures, Equity-Method Investments, Licensing Arrangements and Collaborative Arrangements (Tables)
 12 Months Ended
Dec. 31, 2022
Business Combinations, Discontinued Operations And Disposal Groups, Collaborative Arrangements And Equity Method Investments [Abstract]  
Summarized Financial Information of Discontinued Operations
Components of Discontinued operations––net of tax:
Year Ended December 31,(a)
(MILLIONS)202220212020
Revenues$— $277 $7,572 
Costs and expenses:
Cost of sales— 204 2,106 
Selling, informational and administrative expenses8 26 1,682 
Research and development expenses— 9 224 
Acquired in-process research and development expenses— — — 
Amortization of intangible assets — 45 224 
Restructuring charges and certain acquisition-related costs— 2 29 
Other (income)/deductions––net(20)365 428 
Pre-tax income/(loss) from discontinued operations12 (375)2,879 
Provision/(benefit) for taxes on income13 (107)349 
Income/(loss) from discontinued operations––net of tax(1)(268)2,529 
Pre-tax gain/(loss) on sale of discontinued operations10 (211)— 
Provision/(benefit) for taxes on income2 (44)— 
Gain/(loss) on sale of discontinued operations––net of tax7 (167)— 
Discontinued operations––net of tax$6 $(434)$2,529 
(a)In 2022, Discontinued operations—net of tax relates to post-close adjustments. In 2021, Discontinued operations—net of tax primarily includes (i) the operations of Meridian prior to its sale on December 31, 2021 recognized in Income/(loss) from discontinued operations—net of tax, which includes a pre-tax amount to resolve a MDL relating to EpiPen against the Company in the U.S. District Court for the District of Kansas for $345 million; and (ii) the after tax loss of $167 million related to the sale of Meridian recognized in Gain/(loss) on sale of discontinued operations––net of tax. To a much lesser extent, Discontinued operations—net of tax in 2021 also includes the operations of the Mylan-Japan collaboration prior to its termination on December 21, 2020 and post-close adjustments directly related to our former Upjohn and Nutrition discontinued businesses, including adjustments for tax, benefits and legal-related matters recognized in Income/(loss) from discontinued operations—net of tax. In 2020, Discontinued operations—net of tax relates to the operations of the Upjohn Business, Meridian and the Mylan-Japan collaboration and includes the impact of the 2021 MTM change in accounting principle, pre-tax interest expense of $116 million associated with the U.S. dollar and Euro denominated senior unsecured notes issued by Upjohn Inc. and Upjohn Finance B.V. in the second quarter of 2020 and pre-tax charges of $223 million related to the remeasurement of Euro debt issued by Upjohn Finance B.V. in the second quarter of 2020.
Summarized Financial Information of Equity Method Investments
Summarized financial information for our equity-method investee, Haleon/the Consumer Healthcare JV, as of September 30, 2022, the most recent period available, and as of September 30, 2021 and for the periods ending September 30, 2022, 2021, and 2020 is as follows:
(MILLIONS)September 30, 2022September 30, 2021
Current assets$5,932 $6,890 
Noncurrent assets35,204 39,445 
Total assets
$41,137 $46,335 
Current liabilities$5,235 $5,133 
Noncurrent liabilities17,220 5,218 
Total liabilities
$22,455 $10,351 
Equity attributable to shareholders$18,455 $35,705 
Equity attributable to noncontrolling interests227 279 
Total net equity$18,682 $35,984 
For the Twelve Months Ending
(MILLIONS)September 30, 2022September 30, 2021September 30, 2020
Net sales$13,566 $12,836 $12,720 
Cost of sales(5,081)(4,755)(5,439)
Gross profit$8,486 $8,081 $7,281 
Income from continuing operations1,745 1,614 1,350 
Net income1,745 1,614 1,350 
Income attributable to shareholders1,675 1,547 1,307 
Summarized financial information for our equity-method investee, ViiV, as of December 31, 2022 and 2021 and for the years ending December 31, 2022, 2021, and 2020 is as follows:
As of December 31,
(MILLIONS)20222021
Current assets$4,043 $3,608 
Noncurrent assets3,014 3,563 
Total assets
$7,057 $7,171 
Current liabilities$3,780 $3,497 
Noncurrent liabilities5,996 6,536 
Total liabilities
$9,777 $10,033 
Total net equity/(deficit) attributable to shareholders$(2,720)$(2,862)
Year Ended December 31,
(MILLIONS)202220212020
Net sales$6,955 $6,380 $6,224 
Cost of sales(819)(682)(574)
Gross profit$6,135 $5,698 $5,650 
Income from continuing operations3,108 2,040 2,012 
Net income3,108 2,040 2,012 
Income attributable to shareholders3,108 2,040 2,012 
Schedule of Collaborative Arrangements and Non-collaborative Arrangement Transactions
The following provides the amounts and classification of payments (income/(expense)) between us and our collaboration partners:
Year Ended December 31,
(MILLIONS)202220212020
Revenues—Revenues(a)
$437 $590 $284 
Revenues—Alliance revenues(b)
8,537 7,652 5,418 
Total revenues from collaborative arrangements$8,974 $8,241 $5,703 
Cost of sales(c)
$(15,589)$(16,169)$(61)
Selling, informational and administrative expenses(d)
(196)(175)(194)
Research and development expenses(e)
272 314 (14)
Acquired in-process research and development expenses(f)
(339)(1,056)(179)
Other income/(deductions)—net(g)
664 820 567 
(a)Represents sales to our partners of products manufactured by us.
(b)Substantially all relates to amounts earned from our partners under co-promotion agreements. The increase in 2022 reflects increases in Alliance revenues from Eliquis, Comirnaty and Bavencio, while the increase in 2021 reflects increases in Alliance revenues from Comirnaty, Eliquis and Xtandi.
(c)Primarily relates to amounts paid to collaboration partners for their share of net sales or profits earned in collaboration arrangements where we are the principal in the transaction, and cost of sales for inventory purchased from our partners. The decrease in 2022, as well as the increase in 2021, primarily relate to Comirnaty.
(d)Represents net reimbursements to our partners for selling, informational and administrative expenses incurred.
(e)Represents net reimbursements (to)/from our partners for research and development expenses incurred.
(f)Primarily relates to upfront payments to our partners as well as premiums paid on our equity investments in the common stock of our partners.(g)Primarily relates to royalties from our collaboration partners.
v3.22.4
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives (Tables)
 12 Months Ended
Dec. 31, 2022
Restructuring and Related Activities [Abstract]  
Schedule Providing Components of Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives
The following summarizes acquisitions and cost-reduction/productivity initiatives costs and credits:
Year Ended December 31,
(MILLIONS)202220212020
Restructuring charges/(credits):
Employee terminations$776 $680 $474 
Asset impairments52 53 66 
Exit costs/(credits)54 8 (6)
Restructuring charges/(credits)(a)
882 741 535 
Transaction costs(b)
144 20 10 
Integration costs and other(c)
348 41 34 
Restructuring charges and certain acquisition-related costs
1,375 802 579 
Net periodic benefit costs/(credits) recorded in Other (income)/deductions––net
(9)(63)3 
Additional depreciation––asset restructuring recorded in our consolidated statements of income as follows(d):
Cost of sales34 63 21 
Selling, informational and administrative expenses2 23 — 
Research and development expenses— — (3)
Total additional depreciation––asset restructuring
36 87 17 
Implementation costs recorded in our consolidated statements of income as follows(e):
Cost of sales54 45 40 
Selling, informational and administrative expenses560 426 197 
Research and development expenses2 1 1 
Total implementation costs
616 472 238 
Total costs associated with acquisitions and cost-reduction/productivity initiatives$2,018 $1,298 $838 
(a)Primarily represents cost reduction initiatives. Restructuring charges/(credits) associated with Biopharma: ($354 million charge in 2022, $610 million charge in 2021, and $71 million charge in 2020).
(b)Represents external costs for banking, legal, accounting and other similar services.
(c)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. 2022 costs mostly related to our acquisitions of Arena and GBT, including $138 million in payments to Arena employees in the first quarter of 2022 and $136 million in payments to GBT employees in the fourth quarter of 2022 for the fair value of previously unvested long-term incentive awards that was recognized as post-closing compensation expense. See Note 2A. 2021 costs primarily related to our acquisition of Trillium. 2020 costs primarily related to our acquisition of Array.
(d)Represents the impact of changes in the estimated useful lives of assets involved in restructuring actions.
(e)Represents external, incremental costs directly related to implementing our non-acquisition-related cost-reduction/productivity initiatives.
Schedule of Restructuring Reserve by Type of Cost
The following summarizes the components and changes in restructuring accruals:
(MILLIONS)Employee
Termination
Costs		Asset
Impairment
Charges		Exit CostsAccrual
Balance, January 1, 2021
$782 $— $15 $798 
Provision680 53 8 741 
Utilization and other(a)
(449)(53)34 (468)
Balance, December 31, 2021(b)
1,014 — 57 1,071 
Provision776 52 54 882 
Utilization and other(a)
(594)(52)(103)(750)
Balance, December 31, 2022(c)
$1,196 $— $8 $1,204 
(a)Includes adjustments for foreign currency translation.
(b)Included in Other current liabilities ($816 million) and Other noncurrent liabilities ($255 million).
(c)Included in Other current liabilities ($991 million) and Other noncurrent liabilities ($213 million).
v3.22.4
Other (Income)/Deductions - Net (Tables)
 12 Months Ended
Dec. 31, 2022
Other Income and Expenses [Abstract]  
Schedule of Other Nonoperating Income (Expense)
Components of Other (income)/deductions––net include:
Year Ended December 31,
(MILLIONS)202220212020
Interest income$(251)$(36)$(73)
Interest expense(a)
1,238 1,291 1,449 
Net interest expense
987 1,255 1,376 
Royalty-related income(845)(857)(770)
Net (gains)/losses on asset disposals— (99)237 
Net (gains)/losses recognized during the period on equity securities(b)
1,273 (1,344)(540)
Income from collaborations, out-licensing arrangements and sales of compound/product rights(c)
(188)(396)(326)
Net periodic benefit costs/(credits) other than service costs(849)(2,547)311 
Certain legal matters, net(d)
230 182 28 
Certain asset impairments(e)
421 86 1,691 
Haleon/Consumer Healthcare JV equity method (income)/loss(f)
(436)(471)(298)
Other, net(g)
(378)(687)(497)
Other (income)/deductions––net
$217 $(4,878)$1,213 
(a)Capitalized interest totaled $124 million in 2022, $108 million in 2021 and $96 million in 2020.
(b)2022 losses include, among other things, unrealized losses of $986 million related to investments in BioNTech, Allogene Therapeutics, Inc. and Arvinas. 2021 gains included, among other things, unrealized gains of $1.6 billion related to investments in BioNTech and Cerevel Therapeutics Holdings, Inc. 2020 gains included, among other things, unrealized gains of $405 million related to investments in BioNTech and SpringWorks Therapeutics, Inc.
(c)2022 includes, among other things, $94 million of out-licensing income from multiple licensees. 2021 included, among other things, $188 million of net collaboration income from BioNTech related to Comirnaty and $97 million of milestone income from multiple licensees. 2020 included, among other things, (i) $178 million in milestone income from multiple licensees and (ii) a $75 million upfront payment received from our sale of our CK1 assets to Biogen Inc.
(d)2022 primarily includes certain product liability and other expenses related to products discontinued and/or divested by Pfizer. 2021 primarily includes certain product liability expenses related to products discontinued and/or divested by Pfizer, and to a lesser extent, legal obligations related to pre-acquisition commitments.
(e)2022 primarily includes intangible asset impairment charges of: (i) $200 million associated with our Biopharma segment, representing an IPR&D asset for the unapproved indication of symptomatic dilated cardiomyopathy due to a mutation of the gene encoding the lamin A/C protein, acquired in our Array acquisition, and was a result of the Phase 3 trial reaching futility at a pre-planned interim analysis, (ii) $171 million associated with our Biopharma segment, related to developed technology rights acquired in our Hospira acquisition, and reflect updated commercial forecasts mainly reflecting competitive pressures, and (iii) $50 million associated with PC1, related to finite-lived licensing agreements acquired in our Hospira acquisition, and reflects updated contract manufacturing forecasts reflecting changes to market dynamics. 2020 included intangible asset impairment charges associated with our Biopharma segment that reflected, among other things, updated commercial forecasts mainly reflecting competitive pressures: (i) $900 million related to IPR&D assets for unapproved indications of certain cancer medicines, acquired in our Array acquisition; (ii) $528 million related to Eucrisa, a finite-lived developed technology right acquired in our Anacor Pharmaceuticals, LLC acquisition; and (iii) $263 million related to finite-lived developed technology rights for certain generic sterile injectables acquired in our Hospira acquisition.
(f)See Note 2C.
(g)2022 includes, among other things, (i) dividend income of $314 million from our investment in ViiV, (ii) income net of costs associated with TSAs of $142 million and (iii) charges of $77 million, reflecting the change in the fair value of contingent consideration. 2021 included, among other things, (i) income net of costs associated with TSAs of $288 million, (ii) dividend income of $166 million from our investment in ViiV and (iii) charges of $142 million, reflecting the change in the fair value of contingent consideration. 2020 included, among other things, (i) dividend income of $278 million from our investment in ViiV, (ii) income net of costs associated with TSAs of $114 million and (iii) charges of $105 million, reflecting the change in the fair value of contingent consideration.
Schedule of Additional Information About Intangible Assets Impaired
Additional information about the intangible assets that were impaired during 2022 (impairment recorded in Other (income)/deductions–net) follows:
Year Ended
Fair Value(a)
December 31, 2022
(MILLIONS)AmountLevel 1Level 2Level 3Impairment
Intangible assets––IPR&D(b)
$— $— $— $— $200 
Intangible assets––Developed technology rights(b)
60 — — 60 171 
Intangible assets––Licensing agreements and other(b)
30 — — 30 50 
Total$90 $— $— $90 $421 
(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.
(b)Reflects intangible assets written down to fair value in 2022. 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.
v3.22.4
Tax Matters (Tables)
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Schedule of Income before Income Tax, Domestic and Foreign
Components of Income from continuing operations before provision/(benefit) for taxes on income include:
 Year Ended December 31,
(MILLIONS)202220212020
United States$5,032 $6,064 $(2,887)
International29,697 18,247 9,924 
Income from continuing operations before provision/(benefit) for taxes on income(a), (b)
$34,729 $24,311 $7,036 
(a)2022 v. 2021––The decrease in domestic income is primarily related to net losses on equity securities in 2022 versus net gains on equity securities in 2021, lower net periodic benefit credits and higher restructuring charges and certain acquisition-related costs, partially offset by Paxlovid income and lower acquired IPR&D expenses. The increase in the international income is primarily related to Paxlovid and Comirnaty income partially offset by lower net periodic benefit credits.
(b)2021 v. 2020––The domestic income in 2021 versus domestic loss in 2020 was mainly related to Comirnaty income, lower asset impairment charges, net periodic benefit credits in 2021 versus net periodic benefit costs in 2020 and higher net gains from equity securities, partially offset by higher R&D expenses. The increase in the international income was primarily related to Comirnaty income, net periodic benefit credits in 2021 versus net periodic benefit costs in 2020 and lower asset impairment charges.
Schedule of Provision for Taxes on Income
Components of Provision/(benefit) for taxes on income based on the location of the taxing authorities include:
 Year Ended December 31,
(MILLIONS)202220212020
United States
Current income taxes:
Federal
$2,744 $3,342 $372 
State and local
(20)34 56 
Deferred income taxes:
Federal
(3,271)(3,850)(1,164)
State and local
(310)(491)(131)
Total U.S. tax provision/(benefit)(857)(964)(867)
International
Current income taxes
4,368 2,769 1,517 
Deferred income taxes
(183)48 (279)
Total international tax provision/(benefit)4,185 2,816 1,237 
Provision/(benefit) for taxes on income
$3,328 $1,852 $370 
Schedule of Effective Income Tax Rate Reconciliation
The reconciliation of the U.S. statutory income tax rate to our effective tax rate for Income from continuing operations follows:
 Year Ended December 31,
202220212020
U.S. statutory income tax rate21.0 %21.0 %21.0 %
Taxation of non-U.S. operations (a), (b)
(5.0)(4.3)(9.9)
Tax settlements and resolution of certain tax positions(c)
(3.0)(0.4)(2.7)
Foreign-Derived Intangible Income deduction(d)
(1.9)(0.6)— 
Certain Consumer Healthcare JV initiatives(c)
— (6.0)— 
U.S. R&D tax credit(0.6)(0.5)(1.4)
Interest(e)
0.2 0.4 1.1 
All other, net(f)
(1.1)(2.0)(2.8)
Effective tax rate for income from continuing operations
9.6 %7.6 %5.3 %
(a)For taxation of non-U.S. operations, this rate impact reflects the income tax rates and relative earnings in the locations where we do business outside the U.S., together with the U.S. tax cost on our international operations, changes in uncertain tax positions not included in the reconciling item called “Tax settlements and resolution of certain tax positions,” as well as changes in valuation allowances. Specifically: (i) the jurisdictional location of earnings is a significant component of our effective tax rate each year, and the rate impact of this component is influenced by the specific location of non-U.S. earnings and the level of such earnings as compared to our total earnings; (ii) the U.S. tax implications of our foreign operations is a significant component of our effective tax rate each year and generally offsets some of the reduction to our effective tax rate each year resulting from the jurisdictional location of earnings; (iii) the impact of certain tax initiatives; and (iv) the impact of changes in uncertain tax positions not included in the reconciling item called “Tax settlements and resolution of certain tax positions” is a component of our effective tax rate each year that can result in either an increase or decrease to our effective tax rate. The jurisdictional mix of earnings, which includes the impact of the location of earnings as well as the U.S. tax cost on our international operations, can vary as a result of operating fluctuations in the normal course of business and as a result of the extent and location of other income and expense items, such as restructuring charges, asset impairments and gains and losses on strategic business decisions. See also Note 5A for the components of pre-tax income and Provision/(benefit) for taxes on income, which is based on the location of the taxing authorities, and for information about settlements and other items impacting Provision/(benefit) for taxes on income.
(b)In all years, the reduction in our effective tax rate is a result of the jurisdictional location of earnings and is largely due to lower tax rates in certain jurisdictions, as well as manufacturing and other incentives for our subsidiaries in Singapore and, to a lesser extent, in Puerto Rico. We benefit from Puerto Rican tax incentives pursuant to a grant that expires during 2053. Under such grant, we are partially exempt from income, property and municipal taxes. In Singapore, we benefit from incentive tax rates effective through 2048 on income from manufacturing and other operations.
(c)See Note 5A.
(d)The higher rate benefit from the Foreign-Derived Intangible Income deduction in 2022 is mainly the result of the TCJA requirement to capitalize R&D costs for tax years beginning after December 31, 2021.
(e)Includes changes in interest related to our uncertain tax positions not included in the reconciling item called “Tax settlements and resolution of certain tax positions”.
(f)All other, net is primarily due to routine business operations.
Schedule of Deferred Tax Assets and Liabilities
Components of our deferred tax assets and liabilities, shown before jurisdictional netting, follow:
2022 Deferred Tax*2021 Deferred Tax*
(MILLIONS)Assets(Liabilities)Assets(Liabilities)
Prepaid/deferred items$1,768 $(533)$1,889 $(456)
Accrued/deferred royalties2,127 — 777 — 
Inventories672 (262)408 (56)
Intangible assets(a)
1,445 (6,288)1,542 (4,577)
Property, plant and equipment112 (1,845)117 (1,647)
Employee benefits(b)
1,314 (276)1,594 (178)
Restructurings and other charges302 — 303 — 
Legal and product liability reserves385 — 373 — 
Research and development(c)
4,137 — 1,656 — 
Net operating loss/tax credit carryforwards(d), (e)
2,224 — 1,431 — 
Unremitted earnings— (51)— (45)
State and local tax adjustments151 — 197 — 
Investments(f)
91 (208)70 (689)
All other78 (56)89 (68)
14,806 (9,519)10,446 (7,714)
Valuation allowances(1,541)— (1,462)— 
Total deferred taxes$13,265 $(9,519)$8,983 $(7,714)
Net deferred tax asset/(liability)(g)
$3,746 $1,269 
*The deferred tax assets and liabilities associated with global intangible low-taxed income are included in the relevant categories. See Note 1Q.
(a)The increase in net deferred tax liabilities in 2022 is primarily due to the acquisition of intangible assets related to GBT, Arena and Biohaven, partially offset by the amortization of intangible assets and certain impairment charges.
(b)The decrease in net deferred tax assets in 2022 is primarily due to changes in pension and postretirement benefit obligations, as well as the performance of plan assets reported in the period. See Note 11.
(c)The increase in deferred tax assets in 2022 is related to the TCJA requirement to capitalize R&D costs for tax years beginning after December 31,2021.
(d)The increase in deferred tax assets in 2022 is primarily due to the acquisition of net operating loss carryforwards and credit carryforwards related to Arena, GBT and Biohaven. See Note 2A.
(e)The amounts in 2022 and 2021 are reduced for unrecognized tax benefits of $1.2 billion and $3.0 billion, respectively, where we have net operating loss carryforwards, similar tax losses, and/or tax credit carryforwards that are available, under the tax law of the applicable jurisdiction, to settle any additional income taxes that would result from the disallowance of a tax position.
(f)The decrease in net deferred tax liabilities in 2022 is primarily due to the impact of foreign currency translation adjustments related to our equity-method investment in Haleon/the Consumer Healthcare JV. See Note 2C.
(g)In 2022, Noncurrent deferred tax assets and other noncurrent tax assets ($4.8 billion), and Noncurrent deferred tax liabilities ($1.0 billion). In 2021, Noncurrent deferred tax assets and other noncurrent tax assets ($1.6 billion), and Noncurrent deferred tax liabilities ($0.3 billion).
Schedule of Unrecognized Tax Benefits Roll Forward
The reconciliation of the beginning and ending amounts of gross unrecognized tax benefits follows:
(MILLIONS)202220212020
Balance, beginning$(6,068)$(5,595)$(5,381)
Acquisitions(52)— 37 
Divestitures(a)
— — 265 
Increases based on tax positions taken during a prior period(b)
(67)(111)(232)
Decreases based on tax positions taken during a prior period(b), (c)
1,339 103 64 
Decreases based on settlements for a prior period(c),(d)
842 24 15 
Increases based on tax positions taken during the current period(b)
(701)(550)(411)
Impact of foreign exchange90 22 (72)
Other, net(b), (e)
122 40 120 
Balance, ending(f)
$(4,494)$(6,068)$(5,595)
(a)For 2020, related to the separation of Upjohn. See Note 2B.
(b)Primarily included in Provision/(benefit) for taxes on income.
(c)Primarily related to effectively settling certain issues with the U.S. and foreign tax authorities. See Note 5A.
(d)Primarily related to cash payments and reductions of tax attributes.
(e)Primarily related to decreases as a result of a lapse of applicable statutes of limitations.
(f)In 2022, included in Income taxes payable ($40 million), Other current assets ($3 million), Noncurrent deferred tax assets and other noncurrent tax assets ($1.2 billion), Noncurrent deferred tax liabilities ($5 million) and Other taxes payable ($3.2 billion). In 2021, included in Income taxes payable ($19 million), Other current assets ($42 million), Noncurrent deferred tax assets and other noncurrent tax assets ($3.0 billion), Noncurrent deferred tax liabilities ($5 million) and Other taxes payable ($3.0 billion).
Schedule of Other Comprehensive Income (Loss), Components of Income Tax Expense (Benefit)
Components of the Tax provision/(benefit) on other comprehensive income/(loss) include:
 Year Ended December 31,
(MILLIONS)202220212020
Foreign currency translation adjustments, net(a)
$(126)$43 $(119)
Unrealized holding gains/(losses) on derivative financial instruments, net183 84 (88)
Reclassification adjustments for (gains)/losses included in net income(270)29 (25)
 (87)114 (113)
Unrealized holding gains/(losses) on available-for-sale securities, net(164)(44)45 
Reclassification adjustments for (gains)/losses included in net income226 (4)(24)
 62 (48)22 
Benefit plans: prior service (costs)/credits and other, net(5)27 12 
Reclassification adjustments related to amortization of prior service costs and other, net(29)(47)(31)
Reclassification adjustments related to curtailments of prior service costs and other, net(3)(18)1 
 (37)(38)(17)
Tax provision/(benefit) on other comprehensive income/(loss)$(187)$71 $(227)
(a)Taxes are not provided for foreign currency translation adjustments relating to investments in international subsidiaries that are expected to be held indefinitely.
v3.22.4
Accumulated Other Comprehensive Loss, Excluding Noncontrolling Interests (Tables)
 12 Months Ended
Dec. 31, 2022
Equity [Abstract]  
Schedule of Changes in Accumulated Other Comprehensive Loss, Net of Tax
The following summarizes the changes, net of tax, in Accumulated other comprehensive loss:
Net Unrealized Gains/(Losses)Benefit Plans
(MILLIONS)
Foreign Currency Translation Adjustments(a)
Derivative Financial InstrumentsAvailable-For-Sale SecuritiesPrior Service (Costs)/ Credits and OtherAccumulated Other Comprehensive Income/(Loss)
Balance, January 1, 2020$(5,936)$20 $(35)$584 $(5,367)
Other comprehensive income/(loss)883 (448)151 (106)480 
Distribution of Upjohn Business(b)
(397)— — (26)(423)
Balance, December 31, 2020(5,450)(428)116 452 (5,310)
Other comprehensive income/(loss)(722)547 (336)(75)(587)
Balance, December 31, 2021(6,172)119 (220)377 (5,897)
Other comprehensive income/(loss)(2,188)(531)440 (129)(2,407)
Balance, December 31, 2022$(8,360)$(412)$220 $248 $(8,304)
(a)Amounts do not include foreign currency translation adjustments attributable to noncontrolling interests. Foreign currency translation adjustments include net losses in 2022 and 2021 and net gains in 2020 related to our equity-method investment in Haleon/the Consumer Healthcare JV (see Note 2C), and the impact of our net investment hedging program.
(b)For more information, see Note 2B.
v3.22.4
Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2022
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis and Fair Value Hierarchy, using a Market Approach:
As of December 31, 2022As of December 31, 2021
(MILLIONS)TotalLevel 1Level 2TotalLevel 1Level 2
Financial assets:
Short-term investments
Equity securities with readily determinable fair values:
Money market funds$1,588 $— $1,588 $5,365 $— $5,365 
Available-for-sale debt securities:
Government and agency—non-U.S.15,915 — 15,915 17,318 — 17,318 
Government and agency—U.S.1,313 — 1,313 4,050 — 4,050 
Corporate and other1,514 — 1,514 647 — 647 
18,743 — 18,743 22,014 — 22,014 
Total short-term investments20,331 — 20,331 27,379 — 27,379 
Other current assets
Derivative assets:
Interest rate contracts— — — 4 — 4 
Foreign exchange contracts714 — 714 704 — 704 
Total other current assets714 — 714 709 — 709 
Long-term investments
Equity securities with readily determinable fair values(a)
2,836 2,823 13 3,876 3,849 27 
Available-for-sale debt securities:
Government and agency—non-U.S.280 — 280 465 — 465 
Government and agency—U.S.— — — 6 — 6 
Corporate and other72 — 72 50 — 50 
352 — 352 521 — 521 
Total long-term investments3,188 2,823 365 4,397 3,849 548 
Other noncurrent assets
Derivative assets:
Interest rate contracts— — — 16 — 16 
Foreign exchange contracts364 — 364 242 — 242 
Total derivative assets364 — 364 259 — 259 
Insurance contracts(b)
665 — 665 808 — 808 
Total other noncurrent assets1,028 — 1,028 1,067 — 1,067 
Total assets$25,261 $2,823 $22,439 $33,552 $3,849 $29,703 
Financial liabilities:
Other current liabilities
Derivative liabilities:
Interest rate contracts$10 $— $10 $— $— $— 
Foreign exchange contracts694 — 694 476 — 476 
Total other current liabilities704 — 704 476 — 476 
Other noncurrent liabilities
Derivative liabilities:
Interest rate contracts321 — 321 — — — 
Foreign exchange contracts864 — 864 405 — 405 
Total other noncurrent liabilities1,185 — 1,185 405 — 405 
Total liabilities$1,889 $— $1,889 $881 $— $881 
(a)Long-term equity securities of $143 million as of December 31, 2022 and $194 million as of December 31, 2021 were held in restricted trusts for U.S. non-qualified employee benefit plans.
(b)Includes life insurance policies held in restricted trusts for U.S. non-qualified employee benefit plans. The underlying invested assets in these contracts are marketable securities, which are carried at fair value, with changes in fair value recognized in Other (income)/deductions—net (see Note 4).
Summary of Investments
The following summarizes our investments by classification type:
As of December 31,
(MILLIONS)20222021
Short-term investments
Equity securities with readily determinable fair values(a)
$1,588 $5,365 
Available-for-sale debt securities18,743 22,014 
Held-to-maturity debt securities1,985 1,746 
Total Short-term investments$22,316 $29,125 
Long-term investments
Equity securities with readily determinable fair values(b)
$2,836 $3,876 
Available-for-sale debt securities352 521 
Held-to-maturity debt securities48 34 
Private equity securities at cost(b)
800 623 
Total Long-term investments
$4,036 $5,054 
Equity-method investments11,033 16,472 
Total long-term investments and equity-method investments
$15,069 $21,526 
Held-to-maturity cash equivalents$679 $268 
(a)Includes money market funds primarily invested in U.S. Treasury and government debt.
(b)Represent investments in the life sciences sector.
Contractual Maturities of Available-for-sale and Held-to-maturity Securities
At December 31, 2022, our investment portfolio consisted of debt securities issued across diverse governments, corporate and financial institutions, which are investment-grade. The contractual or estimated maturities, are as follows:
As of December 31, 2022As of December 31, 2021
Gross UnrealizedMaturities (in Years)Gross Unrealized
(MILLIONS)Amortized CostGainsLossesFair ValueWithin 1Over 1
to 5		Over 5Amortized CostGainsLossesFair Value
Available-for-sale debt securities
Government and agency––non-U.S.
$15,946 $297 $(48)$16,195 $15,915 $280 $— $18,032 $13 $(263)$17,783 
Government and agency––U.S.
1,313 — — 1,313 1,313 — — 4,056 — (1)4,055 
Corporate and other1,584 7 (4)1,586 1,514 72 — 698 — (1)697 
Held-to-maturity debt securities
Time deposits and other
1,171 — — 1,171 1,127 20 24 947 — — 947 
Government and agency––non-U.S.
1,542 — — 1,542 1,538 3 1 1,102 — — 1,102 
Total debt securities$21,556 $304 $(53)$21,807 $21,407 $375 $25 $24,835 $14 $(265)$24,584 
Schedule of Available-for-sale Securities Reconciliation
At December 31, 2022, our investment portfolio consisted of debt securities issued across diverse governments, corporate and financial institutions, which are investment-grade. The contractual or estimated maturities, are as follows:
As of December 31, 2022As of December 31, 2021
Gross UnrealizedMaturities (in Years)Gross Unrealized
(MILLIONS)Amortized CostGainsLossesFair ValueWithin 1Over 1
to 5		Over 5Amortized CostGainsLossesFair Value
Available-for-sale debt securities
Government and agency––non-U.S.
$15,946 $297 $(48)$16,195 $15,915 $280 $— $18,032 $13 $(263)$17,783 
Government and agency––U.S.
1,313 — — 1,313 1,313 — — 4,056 — (1)4,055 
Corporate and other1,584 7 (4)1,586 1,514 72 — 698 — (1)697 
Held-to-maturity debt securities
Time deposits and other
1,171 — — 1,171 1,127 20 24 947 — — 947 
Government and agency––non-U.S.
1,542 — — 1,542 1,538 3 1 1,102 — — 1,102 
Total debt securities$21,556 $304 $(53)$21,807 $21,407 $375 $25 $24,835 $14 $(265)$24,584 
Held-to-maturity Securities
At December 31, 2022, our investment portfolio consisted of debt securities issued across diverse governments, corporate and financial institutions, which are investment-grade. The contractual or estimated maturities, are as follows:
As of December 31, 2022As of December 31, 2021
Gross UnrealizedMaturities (in Years)Gross Unrealized
(MILLIONS)Amortized CostGainsLossesFair ValueWithin 1Over 1
to 5		Over 5Amortized CostGainsLossesFair Value
Available-for-sale debt securities
Government and agency––non-U.S.
$15,946 $297 $(48)$16,195 $15,915 $280 $— $18,032 $13 $(263)$17,783 
Government and agency––U.S.
1,313 — — 1,313 1,313 — — 4,056 — (1)4,055 
Corporate and other1,584 7 (4)1,586 1,514 72 — 698 — (1)697 
Held-to-maturity debt securities
Time deposits and other
1,171 — — 1,171 1,127 20 24 947 — — 947 
Government and agency––non-U.S.
1,542 — — 1,542 1,538 3 1 1,102 — — 1,102 
Total debt securities$21,556 $304 $(53)$21,807 $21,407 $375 $25 $24,835 $14 $(265)$24,584 
Schedule of Gains and Losses on Investment Securities
The following presents the calculation of the portion of unrealized (gains)/losses that relates to equity securities, excluding equity-method investments, held at the reporting date:
Year Ended December 31,
(MILLIONS)202220212020
Net (gains)/losses recognized during the period on equity securities(a)
$1,273 $(1,344)$(540)
Less: Net (gains)/losses recognized during the period on equity securities sold during the period(126)(80)(24)
Net unrealized (gains)/losses during the reporting period on equity securities still held at the reporting date(b)
$1,400 $(1,264)$(515)
(a)Reported in Other (income)/deductions––net. See Note 4.
(b)Included in net unrealized (gains)/losses are observable price changes on equity securities without readily determinable fair values. As of December 31, 2022, there were cumulative impairments and downward adjustments of $193 million and upward adjustments of $203 million. Impairments, downward and upward adjustments were not significant in 2022, 2021 and 2020.
Schedule of Short-term Borrowings
Short-term borrowings include:
As of December 31,
(MILLIONS)20222021
Current portion of long-term debt, principal amount$2,550 $1,636 
Other short-term borrowings, principal amount(a)
385 605 
Total short-term borrowings, principal amount
2,935 2,241 
Net fair value adjustments10 — 
Total Short-term borrowings, including current portion of long-term debt, carried at historical proceeds, as adjusted
$2,945 $2,241 
(a)Primarily includes cash collateral. See Note 7F.
Schedule of Long-term Debt Instruments
The following outlines our senior unsecured long-term debt* and the weighted-average stated interest rate by maturity:
As of December 31,
(MILLIONS)20222021
Notes due 2023 (3.2% for 2021)(a)
$— $2,550 
Notes due 2024 (3.9% for 2022 and 2021)
2,250 2,250 
Notes due 2025 (0.8% for 2022 and 2021)
750 750 
Notes due 2026 (2.9% for 2022 and 2021)
3,000 3,000 
Notes due 2027 (2.1% for 2022 and 2021)
1,000 1,051 
Notes due 2028 (4.8% for 2022 and 2021)
1,660 1,660 
Notes due 2029-2033 (2.6% for 2022 and 2021)
5,000 5,000 
Notes due 2034-2038 (5.5% for 2022 and 2021)
5,517 5,585 
Notes due 2039-2043 (4.8% for 2022 and 4.7% for 2021)
7,153 7,352 
Notes due 2044-2048 (4.2% for 2022 and 2021)
3,250 3,250 
Notes due 2049-2053 (3.4% for 2022 and 2021)
2,500 2,500 
Total long-term debt, principal amount32,080 34,948 
Net fair value adjustments related to hedging and purchase accounting959 1,438 
Net unamortized discounts, premiums and debt issuance costs(175)(195)
Other long-term debt20 4 
Total long-term debt, carried at historical proceeds, as adjusted$32,884 $36,195 
Current portion of long-term debt, carried at historical proceeds, as adjusted (not included above (3.7% for 2022 and 1.0% for 2021))
$2,560 $1,636 
*Our long-term debt is generally redeemable by us at any time at varying redemption prices plus accrued and unpaid interest.
(a)Reclassified to the current portion of long-term debt.
Schedule of Derivative Financial Instruments
The following summarizes the fair value of the derivative financial instruments and notional amounts:
(MILLIONS)
As of December 31, 2022
As of December 31, 2021
Fair ValueFair Value
NotionalAssetLiabilityNotionalAssetLiability
Derivatives designated as hedging instruments:
Foreign exchange contracts(a)
$26,603 $838 $1,196 $29,576 $787 $717 
Interest rate contracts
2,250 — 331 2,250 21 — 
838 1,527 808 717 
Derivatives not designated as hedging instruments:
Foreign exchange contracts
$29,814 240 362 $21,419 160 164 
Total$1,078 $1,889 $968 $881 
(a)The notional amount of outstanding foreign exchange contracts hedging our intercompany forecasted inventory sales was $4.4 billion as of December 31, 2022 and $4.8 billion as of December 31, 2021.
Schedule of Derivative Assets at Fair Value
The following summarizes the fair value of the derivative financial instruments and notional amounts:
(MILLIONS)
As of December 31, 2022
As of December 31, 2021
Fair ValueFair Value
NotionalAssetLiabilityNotionalAssetLiability
Derivatives designated as hedging instruments:
Foreign exchange contracts(a)
$26,603 $838 $1,196 $29,576 $787 $717 
Interest rate contracts
2,250 — 331 2,250 21 — 
838 1,527 808 717 
Derivatives not designated as hedging instruments:
Foreign exchange contracts
$29,814 240 362 $21,419 160 164 
Total$1,078 $1,889 $968 $881 
(a)The notional amount of outstanding foreign exchange contracts hedging our intercompany forecasted inventory sales was $4.4 billion as of December 31, 2022 and $4.8 billion as of December 31, 2021.
Schedule of Derivative Liabilities at Fair Value
The following summarizes the fair value of the derivative financial instruments and notional amounts:
(MILLIONS)
As of December 31, 2022
As of December 31, 2021
Fair ValueFair Value
NotionalAssetLiabilityNotionalAssetLiability
Derivatives designated as hedging instruments:
Foreign exchange contracts(a)
$26,603 $838 $1,196 $29,576 $787 $717 
Interest rate contracts
2,250 — 331 2,250 21 — 
838 1,527 808 717 
Derivatives not designated as hedging instruments:
Foreign exchange contracts
$29,814 240 362 $21,419 160 164 
Total$1,078 $1,889 $968 $881 
(a)The notional amount of outstanding foreign exchange contracts hedging our intercompany forecasted inventory sales was $4.4 billion as of December 31, 2022 and $4.8 billion as of December 31, 2021.
Schedule of Gains/(Losses) Incurred to Hedge or Offset Operational Foreign Exchange or Interest Rate Risk
The following summarizes information about the gains/(losses) incurred to hedge or offset operational foreign exchange or interest rate risk exposures:
 

Gains/(Losses)
Recognized in OID(a)
Gains/(Losses)
Recognized in OCI(a)
Gains/(Losses)
Reclassified from
OCI into OID and COS(a)
Year Ended December 31,
(MILLIONS)202220212022202120222021
Derivative Financial Instruments in Cash Flow Hedge Relationships:
      
Foreign exchange contracts(b)
$— $— $1,296 $488 $1,916 $(173)
Amount excluded from effectiveness testing and amortized into earnings(c)
— — 148 38 145 38 
Derivative Financial Instruments in Fair Value Hedge Relationships:
Interest rate contracts
(337)(7)— — — — 
Hedged item
337 7 — — — — 
Derivative Financial Instruments in Net Investment Hedge Relationships:
Foreign exchange contracts— — 816 468 — — 
Amount excluded from effectiveness testing and amortized into earnings(c)
— — 73 52 129 109 
Non-Derivative Financial Instruments in Net Investment Hedge Relationships:(d)
Foreign currency short-term borrowings— — 26 78 — — 
Foreign currency long-term debt— — 51 86 — — 
Derivative Financial Instruments Not Designated as Hedges:
Foreign exchange contracts(1,153)(192)— — — — 
All other net(c)
— — — 1 — 1 
$(1,153)$(192)$2,409 $1,210 $2,190 $(25)
(a)OID = Other (income)/deductions—net, included in Other (income)/deductions—net in the consolidated statements of income. COS = Cost of Sales, included in Cost of sales in the consolidated statements of income. OCI = Other comprehensive income/(loss), included in the consolidated statements of comprehensive income.
(b)The amounts reclassified from OCI into COS were a net gain of $375 million in 2022 and a net loss of $89 million in 2021. The remaining amounts were reclassified from OCI into OID. Based on year-end foreign exchange rates that are subject to change, we expect to reclassify a pre-tax loss of $107 million within the next 12 months into income. The maximum length of time over which we are hedging our exposure to the variability in future foreign exchange cash flows is approximately 20 years and relates to foreign currency debt.
(c)The amounts reclassified from OCI were reclassified into OID.
(d)Short-term borrowings and long-term debt include foreign currency borrowings which are used as net investment hedges. The short-term borrowings’ carrying value as of December 31, 2021 was $1.1 billion. The long-term debt carrying values as of December 31, 2022 and December 31, 2021 were $795 million and $844 million, respectively.
Schedule of Amounts Recorded In Balance Sheet Related to Cumulative Adjustments for Fair Value Hedges
The following summarizes cumulative basis adjustments to our long-term debt in fair value hedges:
As of December 31, 2022
As of December 31, 2021
Cumulative Amount of Fair
Value Hedging Adjustment
Increase/(Decrease) to
Carrying Amount		Cumulative Amount of Fair
Value Hedging Adjustment Increase/(Decrease) to
Carrying Amount
(MILLIONS)
Carrying Amount of Hedged Assets/Liabilities(a)
Active
Hedging
Relationships		Discontinued Hedging Relationships
Carrying Amount of Hedged Assets/Liabilities(a)
Active Hedging RelationshipsDiscontinued Hedging Relationships
Short-term borrowings, including current portion of long-term debt$— $— $10 $— $— $— 
Long-term debt$2,235 $(321)$1,042 $2,233 $16 $1,154 
(a)Carrying amounts exclude the cumulative amount of fair value hedging adjustments.
Schedule of Amounts Recorded In Balance Sheet Related to Cumulative Adjustments for Cash Flow Hedges
The following summarizes cumulative basis adjustments to our long-term debt in fair value hedges:
As of December 31, 2022
As of December 31, 2021
Cumulative Amount of Fair
Value Hedging Adjustment
Increase/(Decrease) to
Carrying Amount		Cumulative Amount of Fair
Value Hedging Adjustment Increase/(Decrease) to
Carrying Amount
(MILLIONS)
Carrying Amount of Hedged Assets/Liabilities(a)
Active
Hedging
Relationships		Discontinued Hedging Relationships
Carrying Amount of Hedged Assets/Liabilities(a)
Active Hedging RelationshipsDiscontinued Hedging Relationships
Short-term borrowings, including current portion of long-term debt$— $— $10 $— $— $— 
Long-term debt$2,235 $(321)$1,042 $2,233 $16 $1,154 
(a)Carrying amounts exclude the cumulative amount of fair value hedging adjustments.
v3.22.4
Other Financial Information (Tables)
 12 Months Ended
Dec. 31, 2022
Other Financial Information [Abstract]  
Schedule of Components of Inventories, Current
The following summarizes the components of Inventories:
As of December 31,
(MILLIONS)20222021
Finished goods$2,603 $3,641 
Work-in-process5,519 4,424 
Raw materials and supplies859 994 
Inventories(a)
$8,981 $9,059 
Noncurrent inventories not included above(b)
$5,827 $939 
(a)The decrease from December 31, 2021 reflects lower levels of Comirnaty, partially offset by new products acquired through recent acquisitions and higher Paxlovid inventory levels.
(b)Included in Other noncurrent assets. The increase from December 31, 2021 is primarily due to strategic inventory build related to Paxlovid. Based on our current estimates and assumptions, there are no recoverability issues for these amounts.
Schedule of Component of Inventories, Noncurrent
The following summarizes the components of Inventories:
As of December 31,
(MILLIONS)20222021
Finished goods$2,603 $3,641 
Work-in-process5,519 4,424 
Raw materials and supplies859 994 
Inventories(a)
$8,981 $9,059 
Noncurrent inventories not included above(b)
$5,827 $939 
(a)The decrease from December 31, 2021 reflects lower levels of Comirnaty, partially offset by new products acquired through recent acquisitions and higher Paxlovid inventory levels.
(b)Included in Other noncurrent assets. The increase from December 31, 2021 is primarily due to strategic inventory build related to Paxlovid. Based on our current estimates and assumptions, there are no recoverability issues for these amounts.
v3.22.4
Property, Plant and Equipment (PP&E) (Tables)
 12 Months Ended
Dec. 31, 2022
Property, Plant and Equipment [Abstract]  
Schedule of Components of Property, Plant and Equipment
The following summarizes the components of Property, plant and equipment:
 Useful LivesAs of December 31,
(MILLIONS)(Years)  20222021
Land-$368 $423 
Buildings
33-50
8,832 9,001 
Machinery and equipment
8-20
12,881 12,252 
Furniture, fixtures and other
3-12.5
4,491 4,457 
Construction in progress-4,875 3,822 
31,448 29,955 
Less: Accumulated depreciation15,174 15,074 
Property, plant and equipment$16,274 $14,882 
Long-lived Assets by Geographic Areas
The following provides long-lived assets by geographic area:
 As of December 31,
(MILLIONS)20222021
United States$9,179 $8,385 
Developed Europe5,389 5,094 
Developed Rest of World293 347 
Emerging Markets1,413 1,056 
Property, plant and equipment$16,274 $14,882 
v3.22.4
Identifiable Intangible Assets and Goodwill (Tables)
 12 Months Ended
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Finite-Lived Intangible Assets
The following summarizes the components of Identifiable intangible assets:
 As of December 31, 2022As of December 31, 2021
(MILLIONS)Gross
Carrying
Amount		Accumulated
Amortization		Identifiable
Intangible
Assets, less
Accumulated
Amortization		Gross
Carrying
Amount		Accumulated
Amortization		Identifiable
Intangible
Assets, less
Accumulated
Amortization
Finite-lived intangible assets
Developed technology rights(a)
$85,604 $(56,307)$29,297 $73,346 $(53,732)$19,614 
Brands922 (844)78 922 (807)115 
Licensing agreements and other2,237 (1,397)841 2,284 (1,299)985 
88,763 (58,548)30,215 76,552 (55,838)20,714 
Indefinite-lived intangible assets
Brands827 827 827 827 
IPR&D(b)
11,357 11,357 3,092 3,092 
Licensing agreements and other(b)
971 971 513 513 
13,155 13,155 4,432 4,432 
Identifiable intangible assets(c)
$101,919 $(58,548)$43,370 $80,984 $(55,838)$25,146 
(a)The increase in the gross carrying amounts mainly reflect the impact of the acquisitions of Biohaven and GBT (see Note 2A).
(b)The increase in the gross carrying amounts mainly reflect the impact of the acquisitions of Arena, GBT and Biohaven (see Note 2A), and for IPR&D, is partially offset by an impairment (see Note 4).
(c)The increase is primarily due to acquisitions (see Note 2A), partially offset by amortization expense.
Schedule of Indefinite-Lived Intangible Assets
The following summarizes the components of Identifiable intangible assets:
 As of December 31, 2022As of December 31, 2021
(MILLIONS)Gross
Carrying
Amount		Accumulated
Amortization		Identifiable
Intangible
Assets, less
Accumulated
Amortization		Gross
Carrying
Amount		Accumulated
Amortization		Identifiable
Intangible
Assets, less
Accumulated
Amortization
Finite-lived intangible assets
Developed technology rights(a)
$85,604 $(56,307)$29,297 $73,346 $(53,732)$19,614 
Brands922 (844)78 922 (807)115 
Licensing agreements and other2,237 (1,397)841 2,284 (1,299)985 
88,763 (58,548)30,215 76,552 (55,838)20,714 
Indefinite-lived intangible assets
Brands827 827 827 827 
IPR&D(b)
11,357 11,357 3,092 3,092 
Licensing agreements and other(b)
971 971 513 513 
13,155 13,155 4,432 4,432 
Identifiable intangible assets(c)
$101,919 $(58,548)$43,370 $80,984 $(55,838)$25,146 
(a)The increase in the gross carrying amounts mainly reflect the impact of the acquisitions of Biohaven and GBT (see Note 2A).
(b)The increase in the gross carrying amounts mainly reflect the impact of the acquisitions of Arena, GBT and Biohaven (see Note 2A), and for IPR&D, is partially offset by an impairment (see Note 4).
(c)The increase is primarily due to acquisitions (see Note 2A), partially offset by amortization expense.
Schedule of Expected Amortization Expense
The following provides the expected annual amortization expense:
(MILLIONS)20232024202520262027
Amortization expense$4,223 $3,981 $3,780 $3,714 $3,503 
Schedule of Goodwill
The following summarizes the changes in the carrying amount of Goodwill:
(MILLIONS)
Total(a)
Balance, January 1, 2021
$49,556 
Additions— 
Impact of foreign exchange(348)
Balance, December 31, 2021
49,208 
Additions(b)
2,917 
Impact of foreign exchange(750)
Balance, December 31, 2022
$51,375 
(a)As a result of the organizational changes to the commercial structure within the Biopharma operating segment effective in the third quarter of 2022 (see Note 1A), our goodwill was required to be reallocated amongst impacted reporting units. The allocation of goodwill is a complex process that requires, among other things, that we determine the fair value of each reporting unit under our old and new organizational structure and the portions being transferred. We completed this re-allocation during the fourth quarter 2022 and concluded that none of our goodwill was impaired. Our goodwill balance continues to be assigned within the Biopharma reportable segment.
(b)Additions relate to our acquisitions of GBT, Arena and Biohaven. See Note 2A.
v3.22.4
Pension and Postretirement Benefit Plans and Defined Contribution Plans (Tables)
 12 Months Ended
Dec. 31, 2022
Retirement Benefits [Abstract]  
Schedule of Net Periodic Benefit Costs
The following summarizes the components of net periodic benefit cost/(credit), including those reported as part of discontinued operations for 2020, and the changes in Other comprehensive income/(loss) for our benefit plans:
Pension Plans Postretirement Plans
U.S.International
Year Ended December 31,
(MILLIONS)202220212020202220212020202220212020
Service cost$— $— $— $116 $130 $146 $29 $36 $38 
Interest cost534 455 533 157 146 164 27 29 49 
Expected return on plan assets
(862)(1,052)(1,015)(296)(327)(314)(47)(39)(36)
Amortization of prior service cost/(credit)2 (2)(3)(1)(1)(3)(130)(151)(170)
Actuarial (gains)/losses(a)
225 (684)1,152 (11)(690)148 (440)(167)(165)
Curtailments— — — (11)(4)— (18)(82)— 
Special termination benefits
18 17 1 1 — — 1 2 — 
Net periodic benefit cost/(credit) reported in income(84)(1,265)668 (45)(746)141 (578)(372)(282)
Cost/(credit) reported in Other comprehensive income/(loss)
(2)2 5 (1)4 5 169 107 114 
Cost/(credit) recognized in Comprehensive income
$(86)$(1,264)$674 $(46)$(742)$145 $(410)$(265)$(168)
(a)Reflects: (i) actuarial remeasurement net gains in 2022, primarily due to increases in discount rates, partially offset by unfavorable plan asset performance, (ii) actuarial remeasurement gains in 2021, primarily due to favorable plan asset performance and increases in discount rates, and (iii) actuarial remeasurement net losses in 2020, primarily due to decreases in discount rates partially offset by favorable plan asset performance.
Schedule of Assumptions Used
Pension PlansPostretirement Plans
U.S.International
Year Ended December 31,
(PERCENTAGES)202220212020202220212020202220212020
Weighted-average assumptions used to determine net periodic benefit cost:
Discount rate:
Pension plans/postretirement plans2.9 %2.6 %3.3 %2.9 %2.5 %3.2 %
Interest cost1.5 %1.2 %1.5 %
Service cost1.7 %1.4 %1.6 %
Expected return on plan assets6.3 %6.8 %7.0 %3.1 %3.4 %3.6 %6.3 %6.8 %7.0 %
Rate of compensation increase(a)
2.8 %2.9 %2.9 %
Weighted-average assumptions used to determine benefit obligations at fiscal year-end:
Discount rate5.4 %2.9 %2.6 %3.8 %1.6 %1.5 %5.5 %2.9 %2.5 %
Rate of compensation increase(a)
3.0 %2.8 %2.9 %
(a)The rate of compensation increase is not used to determine the net periodic benefit cost and benefit obligation for the U.S. pension plans as these plans are frozen.
Schedule of Health Care Cost Trend Rates
The following provides the healthcare cost trend rate assumptions for our U.S. postretirement benefit plans:
As of December 31,
20222021
Healthcare cost trend rate assumed for next year 6.4 %6.0 %
Rate to which the cost trend rate is assumed to decline4.0 %4.0 %
Year that the rate reaches the ultimate trend rate2045 2045 
Schedule of Analysis of the Changes in the Benefit Obligations, Plan assets and Accounting Funded Status of Pension and Postretirement Benefit Plans
The following provides: (i) an analysis of the changes in our benefit obligations, plan assets and funded status of our benefit plans, (ii) the funded status recognized in our consolidated balance sheets and (iii) the pre-tax components of cumulative amounts recognized in Accumulated other comprehensive loss:
 Pension Plans Postretirement Plans
 U.S. International
Year Ended December 31,
(MILLIONS)202220212022202120222021
Change in benefit obligation(a)
Benefit obligation, beginning$17,150 $18,306 $11,657 $12,001 $995 $1,238 
Service cost— — 116 130 29 36 
Interest cost534 455 157 146 27 29 
Employee contributions— — 9 10 75 78 
Plan amendments— — — — 24 (116)
Changes in actuarial assumptions and other(b)
(4,187)(331)(2,931)89 (593)(117)
Foreign exchange impact(1)— (1,065)(298)(5)1 
Upjohn spin-off(c)
— — 37 3 — — 
Acquisitions/divestitures, net61 — (50)— — — 
Curtailments and special termination benefits18 17 (10)(2)(3)(8)
Settlements(d)
(1,698)(785)(64)(47)(39)— 
Benefits paid(457)(512)(359)(374)(101)(147)
Benefit obligation, ending(a)
11,420 17,150 7,497 11,657 410 995 
Change in plan assets
Fair value of plan assets, beginning
16,346 16,094 10,729 9,811 753 588 
Actual return on plan assets(3,550)1,405 (2,624)1,106 (106)89 
Company contributions230 143 156 451 65 145 
Employee contributions— — 9 10 75 78 
Foreign exchange impact— — (1,037)(229)— — 
Upjohn spin-off(c)
— — 45 2 — — 
Acquisitions/divestitures, net1 — 9 — — — 
Settlements(d)
(1,698)(785)(64)(47)(39)— 
Benefits paid(457)(512)(359)(374)(101)(147)
Fair value of plan assets, ending10,871 16,346 6,865 10,729 647 753 
Funded status$(549)$(805)$(632)$(928)$238 $(241)
Amounts recorded in our consolidated balance sheet:
Noncurrent assets$346 $447 $783 $1,480 $322 $— 
Current liabilities(110)(138)(27)(33)(6)(6)
Noncurrent liabilities(785)(1,113)(1,388)(2,376)(78)(235)
Funded status$(549)$(805)$(632)$(928)$238 $(241)
Pre-tax components of cumulative amounts recognized in Accumulated other comprehensive loss:
Prior service (costs)/credits$(4)$(6)$(34)$(35)$413 $581 
Information related to the funded status of pension plans with an ABO in excess of plan assets(e):
Fair value of plan assets
$86 $120 $343 $1,304 
ABO981 1,371 1,600 3,344 
Information related to the funded status of pension plans with a PBO in excess of plan assets(e):
Fair value of plan assets$86 $120 $1,081 $1,381 
PBO981 1,371 2,496 3,789 
(a)For the U.S. pension plans, the benefit obligation is both the PBO and ABO as these plans are frozen and future benefit accruals no longer increase with future compensation increases. For the international pension plans, the benefit obligation is the PBO. The ABO for our international pension plans was $7.2 billion in 2022 and $11.2 billion in 2021. For the postretirement plans, the benefit obligation is the ABO.
(b)For both 2022 and 2021, primarily includes actuarial gains resulting from increases in discount rates, offset by increases in inflation assumptions for the international plan.
(c)For more information, see Note 2B.
(d)As a result of a group annuity contract entered into between Pfizer and a third party insurance company in July 2022, the third party insurance company assumed future benefit obligations and responsibility for the annuity payments of certain retirees in the Pfizer Consolidated Pension Plan. As of December 31, 2022, $586 million of benefit obligations and $588 million of plan assets are associated with this contract. We expect to finalize the remaining regulatory approvals for this transaction in due course.
(e)Our main U.S. qualified plan, U.S. postretirement plan and many of our international plans were overfunded as of December 31, 2022.
Schedule of Amounts Recognized in Balance Sheet
The following provides: (i) an analysis of the changes in our benefit obligations, plan assets and funded status of our benefit plans, (ii) the funded status recognized in our consolidated balance sheets and (iii) the pre-tax components of cumulative amounts recognized in Accumulated other comprehensive loss:
 Pension Plans Postretirement Plans
 U.S. International
Year Ended December 31,
(MILLIONS)202220212022202120222021
Change in benefit obligation(a)
Benefit obligation, beginning$17,150 $18,306 $11,657 $12,001 $995 $1,238 
Service cost— — 116 130 29 36 
Interest cost534 455 157 146 27 29 
Employee contributions— — 9 10 75 78 
Plan amendments— — — — 24 (116)
Changes in actuarial assumptions and other(b)
(4,187)(331)(2,931)89 (593)(117)
Foreign exchange impact(1)— (1,065)(298)(5)1 
Upjohn spin-off(c)
— — 37 3 — — 
Acquisitions/divestitures, net61 — (50)— — — 
Curtailments and special termination benefits18 17 (10)(2)(3)(8)
Settlements(d)
(1,698)(785)(64)(47)(39)— 
Benefits paid(457)(512)(359)(374)(101)(147)
Benefit obligation, ending(a)
11,420 17,150 7,497 11,657 410 995 
Change in plan assets
Fair value of plan assets, beginning
16,346 16,094 10,729 9,811 753 588 
Actual return on plan assets(3,550)1,405 (2,624)1,106 (106)89 
Company contributions230 143 156 451 65 145 
Employee contributions— — 9 10 75 78 
Foreign exchange impact— — (1,037)(229)— — 
Upjohn spin-off(c)
— — 45 2 — — 
Acquisitions/divestitures, net1 — 9 — — — 
Settlements(d)
(1,698)(785)(64)(47)(39)— 
Benefits paid(457)(512)(359)(374)(101)(147)
Fair value of plan assets, ending10,871 16,346 6,865 10,729 647 753 
Funded status$(549)$(805)$(632)$(928)$238 $(241)
Amounts recorded in our consolidated balance sheet:
Noncurrent assets$346 $447 $783 $1,480 $322 $— 
Current liabilities(110)(138)(27)(33)(6)(6)
Noncurrent liabilities(785)(1,113)(1,388)(2,376)(78)(235)
Funded status$(549)$(805)$(632)$(928)$238 $(241)
Pre-tax components of cumulative amounts recognized in Accumulated other comprehensive loss:
Prior service (costs)/credits$(4)$(6)$(34)$(35)$413 $581 
Information related to the funded status of pension plans with an ABO in excess of plan assets(e):
Fair value of plan assets
$86 $120 $343 $1,304 
ABO981 1,371 1,600 3,344 
Information related to the funded status of pension plans with a PBO in excess of plan assets(e):
Fair value of plan assets$86 $120 $1,081 $1,381 
PBO981 1,371 2,496 3,789 
(a)For the U.S. pension plans, the benefit obligation is both the PBO and ABO as these plans are frozen and future benefit accruals no longer increase with future compensation increases. For the international pension plans, the benefit obligation is the PBO. The ABO for our international pension plans was $7.2 billion in 2022 and $11.2 billion in 2021. For the postretirement plans, the benefit obligation is the ABO.
(b)For both 2022 and 2021, primarily includes actuarial gains resulting from increases in discount rates, offset by increases in inflation assumptions for the international plan.
(c)For more information, see Note 2B.
(d)As a result of a group annuity contract entered into between Pfizer and a third party insurance company in July 2022, the third party insurance company assumed future benefit obligations and responsibility for the annuity payments of certain retirees in the Pfizer Consolidated Pension Plan. As of December 31, 2022, $586 million of benefit obligations and $588 million of plan assets are associated with this contract. We expect to finalize the remaining regulatory approvals for this transaction in due course.
(e)Our main U.S. qualified plan, U.S. postretirement plan and many of our international plans were overfunded as of December 31, 2022.
Schedule of Amounts Recognized in Accumulated Other Comprehensive Income (Loss)
The following provides: (i) an analysis of the changes in our benefit obligations, plan assets and funded status of our benefit plans, (ii) the funded status recognized in our consolidated balance sheets and (iii) the pre-tax components of cumulative amounts recognized in Accumulated other comprehensive loss:
 Pension Plans Postretirement Plans
 U.S. International
Year Ended December 31,
(MILLIONS)202220212022202120222021
Change in benefit obligation(a)
Benefit obligation, beginning$17,150 $18,306 $11,657 $12,001 $995 $1,238 
Service cost— — 116 130 29 36 
Interest cost534 455 157 146 27 29 
Employee contributions— — 9 10 75 78 
Plan amendments— — — — 24 (116)
Changes in actuarial assumptions and other(b)
(4,187)(331)(2,931)89 (593)(117)
Foreign exchange impact(1)— (1,065)(298)(5)1 
Upjohn spin-off(c)
— — 37 3 — — 
Acquisitions/divestitures, net61 — (50)— — — 
Curtailments and special termination benefits18 17 (10)(2)(3)(8)
Settlements(d)
(1,698)(785)(64)(47)(39)— 
Benefits paid(457)(512)(359)(374)(101)(147)
Benefit obligation, ending(a)
11,420 17,150 7,497 11,657 410 995 
Change in plan assets
Fair value of plan assets, beginning
16,346 16,094 10,729 9,811 753 588 
Actual return on plan assets(3,550)1,405 (2,624)1,106 (106)89 
Company contributions230 143 156 451 65 145 
Employee contributions— — 9 10 75 78 
Foreign exchange impact— — (1,037)(229)— — 
Upjohn spin-off(c)
— — 45 2 — — 
Acquisitions/divestitures, net1 — 9 — — — 
Settlements(d)
(1,698)(785)(64)(47)(39)— 
Benefits paid(457)(512)(359)(374)(101)(147)
Fair value of plan assets, ending10,871 16,346 6,865 10,729 647 753 
Funded status$(549)$(805)$(632)$(928)$238 $(241)
Amounts recorded in our consolidated balance sheet:
Noncurrent assets$346 $447 $783 $1,480 $322 $— 
Current liabilities(110)(138)(27)(33)(6)(6)
Noncurrent liabilities(785)(1,113)(1,388)(2,376)(78)(235)
Funded status$(549)$(805)$(632)$(928)$238 $(241)
Pre-tax components of cumulative amounts recognized in Accumulated other comprehensive loss:
Prior service (costs)/credits$(4)$(6)$(34)$(35)$413 $581 
Information related to the funded status of pension plans with an ABO in excess of plan assets(e):
Fair value of plan assets
$86 $120 $343 $1,304 
ABO981 1,371 1,600 3,344 
Information related to the funded status of pension plans with a PBO in excess of plan assets(e):
Fair value of plan assets$86 $120 $1,081 $1,381 
PBO981 1,371 2,496 3,789 
(a)For the U.S. pension plans, the benefit obligation is both the PBO and ABO as these plans are frozen and future benefit accruals no longer increase with future compensation increases. For the international pension plans, the benefit obligation is the PBO. The ABO for our international pension plans was $7.2 billion in 2022 and $11.2 billion in 2021. For the postretirement plans, the benefit obligation is the ABO.
(b)For both 2022 and 2021, primarily includes actuarial gains resulting from increases in discount rates, offset by increases in inflation assumptions for the international plan.
(c)For more information, see Note 2B.
(d)As a result of a group annuity contract entered into between Pfizer and a third party insurance company in July 2022, the third party insurance company assumed future benefit obligations and responsibility for the annuity payments of certain retirees in the Pfizer Consolidated Pension Plan. As of December 31, 2022, $586 million of benefit obligations and $588 million of plan assets are associated with this contract. We expect to finalize the remaining regulatory approvals for this transaction in due course.
(e)Our main U.S. qualified plan, U.S. postretirement plan and many of our international plans were overfunded as of December 31, 2022.
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets
The following provides: (i) an analysis of the changes in our benefit obligations, plan assets and funded status of our benefit plans, (ii) the funded status recognized in our consolidated balance sheets and (iii) the pre-tax components of cumulative amounts recognized in Accumulated other comprehensive loss:
 Pension Plans Postretirement Plans
 U.S. International
Year Ended December 31,
(MILLIONS)202220212022202120222021
Change in benefit obligation(a)
Benefit obligation, beginning$17,150 $18,306 $11,657 $12,001 $995 $1,238 
Service cost— — 116 130 29 36 
Interest cost534 455 157 146 27 29 
Employee contributions— — 9 10 75 78 
Plan amendments— — — — 24 (116)
Changes in actuarial assumptions and other(b)
(4,187)(331)(2,931)89 (593)(117)
Foreign exchange impact(1)— (1,065)(298)(5)1 
Upjohn spin-off(c)
— — 37 3 — — 
Acquisitions/divestitures, net61 — (50)— — — 
Curtailments and special termination benefits18 17 (10)(2)(3)(8)
Settlements(d)
(1,698)(785)(64)(47)(39)— 
Benefits paid(457)(512)(359)(374)(101)(147)
Benefit obligation, ending(a)
11,420 17,150 7,497 11,657 410 995 
Change in plan assets
Fair value of plan assets, beginning
16,346 16,094 10,729 9,811 753 588 
Actual return on plan assets(3,550)1,405 (2,624)1,106 (106)89 
Company contributions230 143 156 451 65 145 
Employee contributions— — 9 10 75 78 
Foreign exchange impact— — (1,037)(229)— — 
Upjohn spin-off(c)
— — 45 2 — — 
Acquisitions/divestitures, net1 — 9 — — — 
Settlements(d)
(1,698)(785)(64)(47)(39)— 
Benefits paid(457)(512)(359)(374)(101)(147)
Fair value of plan assets, ending10,871 16,346 6,865 10,729 647 753 
Funded status$(549)$(805)$(632)$(928)$238 $(241)
Amounts recorded in our consolidated balance sheet:
Noncurrent assets$346 $447 $783 $1,480 $322 $— 
Current liabilities(110)(138)(27)(33)(6)(6)
Noncurrent liabilities(785)(1,113)(1,388)(2,376)(78)(235)
Funded status$(549)$(805)$(632)$(928)$238 $(241)
Pre-tax components of cumulative amounts recognized in Accumulated other comprehensive loss:
Prior service (costs)/credits$(4)$(6)$(34)$(35)$413 $581 
Information related to the funded status of pension plans with an ABO in excess of plan assets(e):
Fair value of plan assets
$86 $120 $343 $1,304 
ABO981 1,371 1,600 3,344 
Information related to the funded status of pension plans with a PBO in excess of plan assets(e):
Fair value of plan assets$86 $120 $1,081 $1,381 
PBO981 1,371 2,496 3,789 
(a)For the U.S. pension plans, the benefit obligation is both the PBO and ABO as these plans are frozen and future benefit accruals no longer increase with future compensation increases. For the international pension plans, the benefit obligation is the PBO. The ABO for our international pension plans was $7.2 billion in 2022 and $11.2 billion in 2021. For the postretirement plans, the benefit obligation is the ABO.
(b)For both 2022 and 2021, primarily includes actuarial gains resulting from increases in discount rates, offset by increases in inflation assumptions for the international plan.
(c)For more information, see Note 2B.
(d)As a result of a group annuity contract entered into between Pfizer and a third party insurance company in July 2022, the third party insurance company assumed future benefit obligations and responsibility for the annuity payments of certain retirees in the Pfizer Consolidated Pension Plan. As of December 31, 2022, $586 million of benefit obligations and $588 million of plan assets are associated with this contract. We expect to finalize the remaining regulatory approvals for this transaction in due course.
(e)Our main U.S. qualified plan, U.S. postretirement plan and many of our international plans were overfunded as of December 31, 2022.
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets
The following provides: (i) an analysis of the changes in our benefit obligations, plan assets and funded status of our benefit plans, (ii) the funded status recognized in our consolidated balance sheets and (iii) the pre-tax components of cumulative amounts recognized in Accumulated other comprehensive loss:
 Pension Plans Postretirement Plans
 U.S. International
Year Ended December 31,
(MILLIONS)202220212022202120222021
Change in benefit obligation(a)
Benefit obligation, beginning$17,150 $18,306 $11,657 $12,001 $995 $1,238 
Service cost— — 116 130 29 36 
Interest cost534 455 157 146 27 29 
Employee contributions— — 9 10 75 78 
Plan amendments— — — — 24 (116)
Changes in actuarial assumptions and other(b)
(4,187)(331)(2,931)89 (593)(117)
Foreign exchange impact(1)— (1,065)(298)(5)1 
Upjohn spin-off(c)
— — 37 3 — — 
Acquisitions/divestitures, net61 — (50)— — — 
Curtailments and special termination benefits18 17 (10)(2)(3)(8)
Settlements(d)
(1,698)(785)(64)(47)(39)— 
Benefits paid(457)(512)(359)(374)(101)(147)
Benefit obligation, ending(a)
11,420 17,150 7,497 11,657 410 995 
Change in plan assets
Fair value of plan assets, beginning
16,346 16,094 10,729 9,811 753 588 
Actual return on plan assets(3,550)1,405 (2,624)1,106 (106)89 
Company contributions230 143 156 451 65 145 
Employee contributions— — 9 10 75 78 
Foreign exchange impact— — (1,037)(229)— — 
Upjohn spin-off(c)
— — 45 2 — — 
Acquisitions/divestitures, net1 — 9 — — — 
Settlements(d)
(1,698)(785)(64)(47)(39)— 
Benefits paid(457)(512)(359)(374)(101)(147)
Fair value of plan assets, ending10,871 16,346 6,865 10,729 647 753 
Funded status$(549)$(805)$(632)$(928)$238 $(241)
Amounts recorded in our consolidated balance sheet:
Noncurrent assets$346 $447 $783 $1,480 $322 $— 
Current liabilities(110)(138)(27)(33)(6)(6)
Noncurrent liabilities(785)(1,113)(1,388)(2,376)(78)(235)
Funded status$(549)$(805)$(632)$(928)$238 $(241)
Pre-tax components of cumulative amounts recognized in Accumulated other comprehensive loss:
Prior service (costs)/credits$(4)$(6)$(34)$(35)$413 $581 
Information related to the funded status of pension plans with an ABO in excess of plan assets(e):
Fair value of plan assets
$86 $120 $343 $1,304 
ABO981 1,371 1,600 3,344 
Information related to the funded status of pension plans with a PBO in excess of plan assets(e):
Fair value of plan assets$86 $120 $1,081 $1,381 
PBO981 1,371 2,496 3,789 
(a)For the U.S. pension plans, the benefit obligation is both the PBO and ABO as these plans are frozen and future benefit accruals no longer increase with future compensation increases. For the international pension plans, the benefit obligation is the PBO. The ABO for our international pension plans was $7.2 billion in 2022 and $11.2 billion in 2021. For the postretirement plans, the benefit obligation is the ABO.
(b)For both 2022 and 2021, primarily includes actuarial gains resulting from increases in discount rates, offset by increases in inflation assumptions for the international plan.
(c)For more information, see Note 2B.
(d)As a result of a group annuity contract entered into between Pfizer and a third party insurance company in July 2022, the third party insurance company assumed future benefit obligations and responsibility for the annuity payments of certain retirees in the Pfizer Consolidated Pension Plan. As of December 31, 2022, $586 million of benefit obligations and $588 million of plan assets are associated with this contract. We expect to finalize the remaining regulatory approvals for this transaction in due course.
(e)Our main U.S. qualified plan, U.S. postretirement plan and many of our international plans were overfunded as of December 31, 2022.
Schedule of Allocation of Plan Assets
The following provides the components of plan assets:
As of December 31, 2022As of December 31, 2021
    Fair ValueFair Value
(MILLIONS EXCEPT TARGET ALLOCATION PERCENTAGE)Target Allocation PercentageTotalLevel 1Level
2		Level 3
Assets Measured at NAV(a)
TotalLevel 1Level
 2		Level 3
Assets Measured at NAV(a)
U.S. pension plans
Cash and cash equivalents0-10%$828 $49 $779 $— $— $1,326 $78 $1,248 $— $— 
Equity securities:20-40%
Global equity securities1,555 1,553 1 1 — 2,273 2,233 38 2 — 
Equity commingled funds165 — 165 — — 1,352 — 1,152 — 200 
Fixed income securities:45-75%
Corporate debt securities3,512 5 3,507 — — 5,566 18 5,548 — — 
Government and agency obligations(b)
1,772 — 1,772 — — 2,533 — 2,533 — — 
Fixed income commingled funds16 — 16 — — 38 — 38 — — 
Other investments:5-20%
Partnership investments(c)
2,152 — — — 2,152 2,079 3 — — 2,076 
Insurance contracts116 — 116 — — 158 — 158 — — 
Other commingled funds(d)
756 — — — 756 1,019 — 10 — 1,009 
Total100 %$10,871 $1,607 $6,355 $1 $2,908 $16,346 $2,332 $10,726 $2 $3,286 
International pension plans
Cash and cash equivalents0-10%$221 $58 $163 $— $— $541 $191 $346 $— $3 
Equity securities:10-20%
Equity commingled funds714 — 672 — 42 1,453 — 1,386 — 67 
Fixed income securities:45-70%
Corporate debt securities569 — 569 — — 1,187 — 1,187 — — 
Government and agency obligations(b)
862 — 862 — — 2,415 — 2,415 — — 
Fixed income commingled funds2,053 — 1,045 — 1,008 2,266 — 1,138 — 1,128 
Other investments:15-35%
Partnership investments(c)
128 — 1 — 126 107 — 2 — 106 
Insurance contracts1,197 — 54 1,143 — 1,329 — 56 1,273 — 
Other(d)
1,122 — 133 312 677 1,431 — 141 404 886 
Total100 %$6,865 $58 $3,498 $1,455 $1,853 $10,729 $191 $6,672 $1,677 $2,189 
U.S. postretirement plans(e)
Cash and cash equivalents0-5%$97 $1 $96 $— $— $85 $3 $82 $— $— 
Insurance contracts95-100%551 — 551 — — 669 — 669 — — 
Total100 %$647 $1 $646 $— $— $753 $3 $750 $— $— 
(a)Certain investments that are measured at NAV per share (or its equivalent) have not been classified in the fair value hierarchy. The NAV amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented for the total pension benefits plan assets.
(b)Government and agency obligations are inclusive of repurchase agreements.
(c)Mainly includes investments in private equity, private debt, public equity limited partnerships, and, to a lesser extent, real estate and venture capital.
(d)Mostly includes investments in hedge funds and real estate.
(e)Reflects postretirement plan assets, which support a portion of our U.S. retiree medical plans.
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets
The following provides an analysis of the changes in our more significant investments valued using significant unobservable inputs:
International Pension Plans
Year Ended December 31,
(MILLIONS)20222021
Fair value, beginning$1,677 $1,362 
Actual return on plan assets:
Assets held, ending(177)23 
Assets sold during the period4 — 
Purchases, sales, and settlements, net
(129)52 
Transfer into/(out of) Level 3241 265 
Exchange rate changes(161)(24)
Fair value, ending$1,455 $1,677 
Schedule of Expected Future Cash Flow Information
The following provides the expected future cash flow information related to our benefit plans:
  Pension PlansPostretirement Plans
(MILLIONS)U.S.International
Expected employer contributions:
2023(a)
$111 $147 $(53)
Expected benefit payments:
2023$982 $364 $42 
2024947 365 43 
2025920 372 44 
2026901 379 44 
2027885 392 43 
2028–20324,218 2,069 192 
(a)For the U.S. postretirement plan, the IRC 401(h) and voluntary employees’ beneficiary association reimbursements totaling $95 million are expected to exceed expected employer contributions.
v3.22.4
Share-Based Payments (Tables)
 12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Schedule of Share-based Compensation Awards and Valuation Details
A summary of the awards and valuation details:
Awarded toTermsValuationRecognition and Presentation
Total Shareholder Return Units (TSRUs)(a), (b)
Senior and other key management and select employees
•Entitle the holder to receive shares of our common stock with a value equal to the difference between the defined settlement price and the grant price, plus the dividend equivalents accumulated during the five or seven-year term, if and to the extent the total value is positive.
•Settlement price is the average closing price of our common stock during the 20 trading days ending on the fifth or seventh anniversary of the grant, as applicable; the grant price is the closing price of our common stock on the date of the grant.
•Automatically settle on the fifth or seventh anniversary of the grant but vest on the third anniversary of the grant.
As of the grant date using a Monte Carlo simulation model
Amortized on a straight-line basis over the vesting term into Cost of sales, Selling, informational and administrative expenses, and/or Research and development expenses, as appropriate.
Restricted Stock Units (RSUs)
Select employees
•Entitle the holder to receive a specified number of shares of our common stock, including dividend equivalents that are reinvested into additional RSUs.
•For RSUs granted before 2022, generally in all instances, the units vest on the third anniversary of the grant date assuming continuous service from the grant date. Beginning in 2022, generally in all instances, the units vest and distribute one-third per year for three years on each of the three annual anniversaries from the date of grant assuming continuous service from the grant date.
As of the grant date using the closing price of our common stock
Amortized on a straight-line basis for RSUs granted before 2022, and on an accelerated attribution approach for RSUs granted in 2022, over the vesting term into Cost of sales, Selling, informational and administrative expenses, and/or Research and development expenses, as appropriate.
Portfolio Performance Shares (PPSs)
Select employees
•Entitle the holder to receive, at the end of the performance period, shares of our common stock, if any, including shares resulting from dividend equivalents earned on such shares.
•For PPSs granted, the awards vest on the third anniversary of the grant assuming continuous service from the grant date and the number of shares paid, if any, depends on the achievement of predetermined goals related to Pfizer’s long-term product portfolio during a three or five-year performance period from the year of the grant date, as applicable.
•The number of shares that may be earned ranges from 0% to 200% of the initial award depending on goal achievement over the performance period.
As of the grant date using the intrinsic value method using the closing price of our common stock
Amortized on a straight-line basis over the vesting term into Cost of sales, Selling, informational and administrative expenses and/or Research and development expenses, as appropriate, and adjusted each reporting period, as necessary, to reflect changes in the price of our common stock, the number of shares that are probable of being earned, and management’s assessment of the probability that the specified performance criteria will be achieved.
Performance Share Awards (PSAs)
Senior and other key management
•Entitle the holder to receive, at the end of the performance period, shares of our common stock (retirees) earned, if any, or an equal value in cash (active colleagues), including dividend equivalents on shares earned, dependent upon the achievement of predetermined goals related to two measures:
a.Adjusted net income over three one-year periods; and
b.TSR as compared to the NYSE ARCA Pharmaceutical Index (DRG Index) over the three-year performance period.
•PSAs vest on the third anniversary of the grant assuming continuous service from the grant date.
•The award that may be earned ranges from 0% to 200% of the target award depending on goal achievement over the performance period.
As of the grant date using the intrinsic value method using the closing price of our common stock
Amortized on a straight-line basis over the vesting term into Cost of sales, Selling, informational and administrative expenses, and/or Research and development expenses, as appropriate, and adjusted each reporting period, as necessary, to reflect changes in the price of our common stock, the number of shares that are probable of being earned and management’s assessment of the probability that the specified performance criteria will be achieved.
Breakthrough Performance Awards (BPAs)
Select employees identified as instrumental in delivering medicines to patients (excluding executive officers)
•Entitle the holder to receive, at the end of the performance period, shares of our common stock, if any, including shares resulting from dividend equivalents earned on such shares.
•For BPAs granted, the awards, if earned/vested, are settled at the end of the performance period, but no earlier than the one-year anniversary of the date of grant and dependent upon the achievement of the respective predetermined performance goals related to advancing Pfizer’s product pipeline during the performance period.
•The number of shares that may be earned ranges from 0% to 600% of the target award depending on the level and timing of goal achievement over the performance period.
As of the grant date using the intrinsic value method using the closing price of our common stock
Amortized on a straight-line basis over the probable vesting term into Cost of sales, Selling, informational and administrative expenses, and/or Research and development expenses, as appropriate, and adjusted each reporting period, as necessary, to reflect changes in the price of our common stock, the number of shares that are probable of being earned and management’s assessment of the probability that the specified performance criteria will be achieved and/or management’s assessment of the probable vesting term.
Awarded toTermsValuationRecognition and Presentation
Stock Options
Select employees
•Entitle the holder to purchase a specified number of shares of our common stock at a price per share equal to the closing market price of our common stock on the date of grant, for a period of time when vested.
•Since 2016, only a limited set of non-U.S. employees received stock option grants. No stock options were awarded to senior and other key management in any period presented.
•Stock options vest on the third anniversary of the grant assuming continuous service from the grant date and have a contractual term of 10 years.
As of the grant date using the Black-Scholes-Merton option-pricing model
Amortized on a straight-line basis over the vesting term into Cost of sales, Selling, informational and administrative expenses, and/or Research and development expenses, as appropriate.
(a)Retirement-eligible holders, as defined in the grant terms, can convert their TSRUs, when vested, into Profit Units (PTUs) with a conversion ratio based on a calculation used to determine the shares at TSRU settlement. The PTUs are entitled to earn Dividend Equivalent Units (DEUs), and the PTUs and DEUs will be settled in our common stock on the TSRUs’ original settlement date and will be subject to the terms and conditions of the original grant including forfeiture provisions.
(b)In 2017, Performance Total Shareholder Return Units (PTSRUs) were awarded to the Former Chairman and Chief Executive Officer (1,444,395 PTSRUs) and 361,099 PTSRUs were awarded to the Group President, Chief Business Officer (former role Group President Pfizer Innovative Health) at a grant price of $30.31 and at a GDFV of $5.54 per PTSRU. In addition to having the same characteristics and valuation methodology of TSRUs, PTSRU grants require special service and performance conditions. These awards were settled in December 2022 in accordance with the grant provisions.
Schedule of Share-based Payment Arrangement Activity
The following provides data related to all TSRU, RSU, PPS, PSA and stock option activity:
(MILLIONS, EXCEPT FAIR VALUE OF SHARES VESTED PER TSRU AND STOCK OPTION)TSRUsRSUsPPSsPSAsStock Options
Year Ended December 31,202220212020202220212020202220212020202220212020202220212020
Total fair value of shares vested(a)
$11.72$7.26$6.22$345$304$334$145$181$119$57$33$25$9.44$4.86$3.56
Total intrinsic value of options exercised or share units converted$1,131$594$84$280$228$224$247$584$293
Cash received upon exercise$260$795$425
Tax benefits realized from exercise$46$106$55
Compensation cost recognized, pre-tax(b)
$255$259$287$402$281$272$144$535$180$73$76$31$4$5$6
Total compensation cost related to nonvested awards not yet recognized, pre-tax$179$187$224$266$271$228$135$175$104$38$54$32$3$3$4
Weighted-average period over which cost is expected to be recognized (years)1.71.61.61.71.81.71.71.81.81.81.81.91.71.61.7
(a)Weighted-average GDFV per TSRUs and stock options.
(b)In 2020, TSRU includes expense for PTSRUs, which is not significant.
Summary of all TSRU, RSU, PPS, PSA and BPA activity during 2022 (with the shares granted representing the maximum award that could be achieved for PPSs, PSAs and BPAs):
TSRUsRSUs
PPSs(a)
PSAsBPAs
TSRUs Per TSRU, Weighted AverageShares  Weighted Avg. GDFV per shareShares Weighted Avg. Intrinsic Value per shareShares Weighted Avg. Intrinsic Value per shareShares Weighted Avg. Intrinsic Value per share
(Thousands)GDFVGrant Price(Thousands)(Thousands)(Thousands)(Thousands)
Nonvested,
December 31, 2021
114,599$6.90 $34.12 25,540$35.52 21,480$59.05 5,154$59.05 859$59.05 
Granted22,47911.72 46.02 9,61746.73 7,08945.96 1,50646.38 — — 
Vested(33,066)8.40 38.57 (7,258)41.10 (5,602)46.99 (1,209)46.98 — — 
Reinvested dividend equivalents876 50.30 
Forfeited(2,318)7.76 35.88 (948)39.75 (645)50.52 (433)47.22 (859)47.21 
Nonvested, December 31, 2022
101,693$7.58 $35.26 27,826$38.26 22,322$51.24 5,018$51.24 — $— 
(a)Vested and non-vested shares outstanding, but not paid as of December 31, 2022 were 34.2 million.
Summary of TSRU and PTU information as of December 31, 2022(a), (b):
TSRUs
(Thousands)
PTUs
(Thousands)
Weighted-Average
Grant Price
Per TSRU
Weighted-Average
Remaining Contractual Term (Years)
Aggregate Intrinsic Value (Millions)
TSRUs Outstanding180,182 $34.51 2.0$3,528 
TSRUs Vested78,488 33.54 0.71,637 
TSRUs Expected to vest(c)
99,060 $35.14 3.01,856 
Outstanding PTUs converted from TSRUs exercised2,621 0.6$134 
(a)In 2022, we settled 42,938,701 TSRUs with a weighted-average grant price of $27.32 per unit.
(b)In 2022, 3,097,904 TSRUs with a weighted-average grant price of $28.37 per unit were converted into 1,820,027 PTUs.
(c)The number of TSRUs expected to vest takes into account an estimate of expected forfeitures.
Schedule of Valuation Assumptions
Summary of the weighted-average assumptions used in the valuation of TSRUs and stock options:
TSRUsStock Options
Year Ended December 31,202220212020202220212020
Expected dividend yield (based on a constant dividend yield during the expected term)
3.42 %4.51 %4.36 %3.42 %4.51 %4.36 %
Risk-free interest rate (based on interpolated yield on U.S. Treasury zero-coupon issues)
1.87 %0.93 %1.15 %1.93 %1.27 %1.25 %
Expected stock price volatility (based on implied volatility, after consideration of historical volatility)
29.20 %26.53 %20.99 %29.21 %26.54 %20.97 %
TSRUs contractual/stock options expected term, years (based on historical exercise and post-vesting termination patterns for stock options)
5.175.155.126.506.756.75
Schedule of Share-based Compensation, Stock Options, Activity
Summary of all stock option activity during 2022:
Shares
(Thousands)
Weighted-Average
Exercise Price
Per Share
Weighted-Average
Remaining Contractual Term
(Years)
Aggregate
Intrinsic Value(a)
(Millions)
Outstanding, December 31, 2021
44,874 $30.20 
Granted429 45.96 
Exercised(9,859)26.44 
Forfeited(26)34.52 
Expired(138)20.80   
Outstanding, December 31, 2022
35,280 31.47 2.1$697 
Vested and expected to vest, December 31, 2022(b)
35,209 31.46 2.1696 
Exercisable, December 31, 2022
32,460 $31.18 1.6$651 
(a)Market price of our underlying common stock less exercise price.
(b)The number of options expected to vest takes into account an estimate of expected forfeitures.
v3.22.4
Earnings Per Common Share Attributable to Pfizer Inc. Common Shareholders (Tables)
 12 Months Ended
Dec. 31, 2022
Earnings Per Share [Abstract]  
Schedule of Basic and Diluted Earning Per Share
The following presents the detailed calculation of EPS:
 Year Ended December 31,
(IN MILLIONS)202220212020
EPS Numerator––Basic  
Income from continuing operations attributable to Pfizer Inc. common shareholders
$31,366 $22,414 $6,630 
Discontinued operations––net of tax6 (434)2,529 
Net income attributable to Pfizer Inc. common shareholders
$31,372 $21,979 $9,159 
EPS Numerator––Diluted  
Income from continuing operations attributable to Pfizer Inc. common shareholders and assumed conversions
$31,366 $22,414 $6,630 
Discontinued operations––net of tax, attributable to Pfizer Inc. common shareholders and assumed conversions6 (434)2,529 
Net income attributable to Pfizer Inc. common shareholders and assumed conversions
$31,372 $21,979 $9,159 
EPS Denominator  
Weighted-average number of common shares outstanding––Basic5,608 5,601 5,555 
Common-share equivalents: stock options and stock issuable under employee compensation plans125 107 77 
Weighted-average number of common shares outstanding––Diluted
5,733 5,708 5,632 
Anti-dilutive common stock equivalents(a)
1 2 4 
(a)These common stock equivalents were outstanding for the periods presented, but were not included in the computation of diluted EPS for those periods because their inclusion would have had an anti-dilutive effect.
v3.22.4
Leases (Tables)
 12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Schedule of Lease Assets and Liabilities
For operating leases, the ROU assets and liabilities in our consolidated balance sheets follows:
As of December 31,
(MILLIONS)Balance Sheet Classification20222021
ROU assetsOther noncurrent assets$3,002 $2,839 
Lease liabilities (short-term)Other current liabilities620 449 
Lease liabilities (long-term)Other noncurrent liabilities2,597 2,510 
Schedule of Lease Costs and Other Supplemental Information
Components of total lease cost includes:
Year Ended December 31,
(MILLIONS)202220212020
Operating lease cost$714 $548 $432 
Variable lease cost536 381 380 
Sublease income(32)(41)(40)
Total lease cost$1,218 $888 $772 
Other supplemental information follows:
As of December 31,
(MILLIONS)20222021
Operating leases
Weighted-Average Remaining Contractual Lease Term (Years)1112
Weighted-Average Discount Rate3.0 %2.8 %
Year Ended December 31,
(MILLIONS)202220212020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$617 $387 $333 
(Gains)/losses on sale and leaseback transactions, net11 1 (3)
Schedule of Future Minimum Rental Payments for Operating Leases
The following reconciles the undiscounted cash flows for the first five years and total of the remaining years to the operating lease liabilities recorded in the consolidated balance sheet as of December 31, 2022:
(MILLIONS)
PeriodOperating Lease Liabilities
Next one year(a)
$662 
1-2 years489 
2-3 years356 
3-4 years300 
4-5 years246 
Thereafter1,791 
Total undiscounted lease payments3,844 
Less: Imputed interest
627 
Present value of minimum lease payments3,217 
Less: Current portion
620 
Noncurrent portion$2,597 
(a)Reflects lease payments due within 12 months subsequent to the balance sheet date.
v3.22.4
Segment, Geographic and Other Revenue Information (Tables)
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information by Segment
The following table provides selected income statement information by reportable segment:
 Revenues
Earnings(a)
Depreciation and Amortization(b)
Year Ended December 31,Year Ended December 31,Year Ended December 31,
(MILLIONS OF DOLLARS)20222021 2020 20222021 202020222021 2020
Reportable Segment:
Biopharma$98,988 $79,557 $40,724 $57,148 $40,647 $27,191 $813 $789 $693 
Other business activities(c)
1,342 1,731 926 (14,370)(13,455)(12,583)626 590 592 
Reconciling Items:
Amortization of intangible assets(3,609)(3,746)(3,395)3,609 3,746 3,395 
Acquisition-related items(832)(139)(98)(20)(21)(17)
Certain significant items(d)
(3,608)1,003 (4,079)36 87 18 
$100,330 $81,288 $41,651 $34,729 $24,311 $7,036 $5,064 $5,191 $4,681 
(a)Income from continuing operations before provision/(benefit) for taxes on income. Biopharma’s earnings include dividend income from our investment in ViiV of $314 million in 2022, $166 million in 2021 and $278 million in 2020. In connection with the organizational changes effective in the third quarter of 2022, certain functions transferred between Biopharma and corporate enabling functions and certain activities were realigned within the GPD organization. We have reclassified $231 million of costs in 2021 and $222 million of costs in 2020 from corporate enabling functions, which are included in Other business activities, to Biopharma to conform to the current period presentation. Amortization of intangible assets is not allocated to our operating segments for all periods presented.
(b)Certain production facilities are shared. Depreciation is allocated based on estimates of physical production.
(c)Other business activities include revenues and costs associated with PC1 and costs that we do not allocate to our operating segments, per above, including acquired IPR&D expenses in the periods presented (see Notes 2A, 2D and 2E). In 2022, earnings include (i) write-offs of $1.3 billion to Cost of sales of inventory related to COVID-19 products that have exceeded or are expected to exceed their approved shelf-lives prior to being used and (ii) charges to Cost of sales of approximately $430 million related to excess raw materials for Paxlovid.
(d)Certain significant items are substantive and/or unusual, and in some cases recurring, items (as noted above). Earnings in 2022 includes, among other items: (i) restructuring charges/(credits) and implementation costs and additional depreciation—asset restructuring of $1.4 billion ($562 million recorded in Selling, informational and administrative expenses and the remaining amount primarily recorded in Restructuring charges and certain acquisition-related costs) and (ii) net losses on equity securities of $1.3 billion recorded in Other (income)/deductions––net. Earnings in 2021 included, among other items: (i) actuarial valuation and other pension and postretirement plan gains of $1.6 billion recorded in Other (income)/deductions––net and (ii) net gains on equity securities of $1.3 billion recorded in Other (income)/deductions––net, partially offset by (iii) restructuring charges/(credits) and implementation costs and additional depreciation—asset restructuring of $1.3 billion ($450 million recorded in Selling, informational and administrative expenses and the remaining amount primarily recorded in Restructuring charges and certain acquisition-related costs). Earnings in 2020 included, among other items: (i) charges of $1.7 billion related to certain asset impairments recorded in Other (income)/deductions––net, (ii) actuarial valuation and other pension and postretirement plan losses of $1.1 billion recorded in Other (income)/deductions––net and (iii) restructuring charges/(credits) and implementation costs and additional depreciation—asset restructuring of $791 million ($197 million recorded in Selling, informational and administrative expenses and the remaining amount primarily recorded in Restructuring charges and certain acquisition-related costs). For additional information, see Notes 3 and 4.
Revenue from External Customers by Geographic Areas
The following summarizes revenues by geographic area:
 Year Ended December 31,
(MILLIONS)202220212020
United States$42,473 $29,746 $21,455 
Developed Europe21,982 18,336 7,788 
Developed Rest of World15,778 12,506 4,036 
Emerging Markets20,097 20,701 8,372 
Revenues
$100,330 $81,288 $41,651 
Schedules of Concentration of Risk
The following summarizes revenue, as a percentage of total revenues, for our three largest U.S. wholesaler customers:
 Year Ended December 31,
202220212020
McKesson, Inc.
8 %9 %16 %
AmerisourceBergen Corporation
5 %7 %14 %
Cardinal Health, Inc.4 %5 %10 %
Schedule of Significant Product Revenues
The following provides detailed revenue information for several of our major products:
(MILLIONS)Year Ended December 31,
PRODUCTPRIMARY INDICATION OR CLASS202220212020
TOTAL REVENUES$100,330 $81,288 $41,651 
GLOBAL BIOPHARMACEUTICALS BUSINESS (BIOPHARMA)(a)
$98,988 $79,557 $40,724 
Primary Care$73,023 $52,029 $15,577 
Comirnaty direct sales and alliance revenues(b)
Active immunization to prevent COVID-19
37,806 36,781 154 
Paxlovid
COVID-19 in certain high-risk patients
18,933 76 — 
Eliquis alliance revenues and direct sales
Nonvalvular atrial fibrillation, deep vein thrombosis, pulmonary embolism6,480 5,970 4,949 
Prevnar familyActive immunization to prevent invasive disease caused by Streptococcus pneumoniae serotypes6,337 5,272 5,850 
Premarin family
Symptoms of menopause455 563 680 
BMP2
Development of bone and cartilage277 266 274 
Nimenrix
Active immunization against invasive meningococcal ACWY disease268 193 221 
Nurtec ODT/VyduraAcute treatment of migraine and prevention of episodic migraine213 — — 
FSME-IMMUN/TicoVacActive immunization to prevent tick-borne encephalitis disease200 185 196 
Toviaz
Overactive bladder146 238 252 
TrumenbaActive immunization to prevent invasive disease caused by Neisseria meningitidis group B123 118 112 
Chantix/Champix
An aid to smoking cessation treatment in adults 18 years of age or older
8 398 919 
All other Primary CareVarious1,778 1,967 1,972 
Specialty Care$13,833 $15,194 $14,280 
Vyndaqel familyATTR-CM and polyneuropathy2,447 2,015 1,288 
Xeljanz
RA, PsA, UC, active polyarticular course juvenile idiopathic arthritis, ankylosing spondylitis1,796 2,455 2,437 
Enbrel (Outside the U.S. and Canada)
RA, juvenile idiopathic arthritis, PsA, plaque psoriasis, pediatric plaque psoriasis, ankylosing spondylitis and nonradiographic axial spondyloarthritis
1,003 1,185 1,350 
Sulperazon
Bacterial infections786 683 618 
Inflectra/Remsima
Crohn’s disease, pediatric Crohn’s disease, UC, pediatric UC, RA in combination with methotrexate, ankylosing spondylitis, PsA and plaque psoriasis
532 657 659 
Ig Portfolio(c)
Various491 430 376 
BeneFIXHemophilia B425 438 454 
ZaviceftaBacterial infections412 413 212 
Genotropin
Replacement of human growth hormone360 389 427 
ZithromaxBacterial infections331 278 276 
MedrolAnti-inflammatory glucocorticoid328 432 402 
Fragmin
Treatment/prevention of venous thromboembolism269 305 252 
Somavert
Acromegaly268 277 277 
Refacto AF/Xyntha
Hemophilia A239 304 370 
Vfend
Fungal infections225 267 270 
OxbrytaSickle cell disease73 — — 
(MILLIONS)Year Ended December 31,
PRODUCTPRIMARY INDICATION OR CLASS202220212020
All other Anti-infectives
Various1,471 1,835 1,679 
All other Specialty CareVarious2,377 2,830 2,934 
Oncology$12,132 $12,333 $10,867 
IbranceHR-positive/HER2-negative metastatic breast cancer5,120 5,437 5,392 
Xtandi alliance revenuesmCRPC, nmCRPC, mCSPC1,198 1,185 1,024 
Inlyta
Advanced RCC1,003 1,002 787 
Bosulif
Philadelphia chromosome–positive chronic myelogenous leukemia575 540 450 
ZirabevTreatment of mCRC; unresectable, locally advanced, recurrent or metastatic NSCLC; recurrent glioblastoma; metastatic RCC; and persistent, recurrent or metastatic cervical cancer562 444 143 
Xalkori
ALK-positive and Proto-Oncogene 1, Receptor Tyrosine Kinase-positive advanced NSCLC465 493 544 
RuxienceNon-hodgkin’s lymphoma, chronic lymphocytic leukemia, granulomatosis with polyangiitis (Wegener’s Granulomatosis) and microscopic polyangiitis458 491 170 
RetacritAnemia394 444 386 
Sutent
Advanced and/or metastatic RCC, adjuvant RCC, refractory gastrointestinal stromal tumors (after disease progression on, or intolerance to, imatinib mesylate) and advanced pancreatic neuroendocrine tumor
347 673 819 
Lorbrena
ALK-positive metastatic NSCLC
343 266 204 
Bavencio alliance revenuesLocally advanced or metastatic urothelial carcinoma; metastatic Merkel cell carcinoma; immunotherapy and tyrosine kinase inhibitor combination for patients with advanced RCC271 178 80 
AromasinPost-menopausal early and advanced breast cancer248 211 148 
BesponsaRelapsed or refractory B-cell acute lymphoblastic leukemia 219 192 182 
Trazimera
HER2-positive breast cancer and metastatic stomach cancers
203 197 98 
Braftovi
In combination with Mektovi for metastatic melanoma in patients with a BRAFV600E/K mutation and, in combination with Erbitux® (cetuximab)(d), for the treatment of BRAFV600E-mutant mCRC after prior therapy
194 187 160 
Mektovi
In combination with Braftovi for metastatic melanoma in patients with a BRAFV600E/K mutation
176 155 142 
All other OncologyVarious357 238 137 
PFIZER CENTREONE(a)
$1,342 $1,731 $926 
Total Alliance revenues included above$8,537 $7,652 $5,418 
(a)See Note 1A for information about our recent organizational changes. PC1 includes revenues from our contract manufacturing, including certain Comirnaty-related manufacturing activities performed on behalf of BioNTech ($188 million for 2022, $320 million for 2021, and $0 million for 2020), and revenues from our active pharmaceutical ingredient sales operation, as well as revenues related to our manufacturing and supply agreements with former legacy Pfizer businesses/partnerships, including but not limited to, transitional manufacturing and supply agreements with Viatris following the spin-off of the Upjohn Business.
(b)Excludes revenues for certain Comirnaty-related manufacturing activities performed on behalf of BioNTech, which are included in the PC1 contract development and manufacturing organization.
(c)Immunoglobulin (Ig) portfolio include the revenues from Panzyga, Octagam and Cutaquig.
(d)Erbitux® is a registered trademark of ImClone LLC.
v3.22.4
Basis of Presentation and Significant Accounting Policies - Narrative (Details)
$ in Billions
 12 Months Ended
Dec. 31, 2022
USD ($)
operatingSegment
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Number of operating segments | operatingSegment 2    
Advertising expense $ 2.8 $ 2.0 $ 1.8
Revenue [Member] | Top Ten Products [Member] | Product Concentration Risk [Member]      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Concentration risk, amount   $ 1.0  
Concentration risk, percentage 82.00%    
Revenue [Member] | Top Nine Products [Member] | Product Concentration Risk [Member]      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Concentration risk, amount $ 1.0    
Concentration risk, percentage   75.00%  
Revenue [Member] | Top Seven Products [Member] | Product Concentration Risk [Member]      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Concentration risk, amount     $ 1.0
Concentration risk, percentage     54.00%
v3.22.4
Basis of Presentation and Significant Accounting Policies - Accrued Rebates and Other Accruals (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Schedule Of Accrued Liabilities [Line Items]    
Total accrued rebates and other sales-related accruals $ 6,722 $ 5,850
Trade accounts receivable, less allowance for doubtful accounts [Member]    
Schedule Of Accrued Liabilities [Line Items]    
Total accrued rebates and other sales-related accruals 1,200 1,077
Other current liabilities [Member]    
Schedule Of Accrued Liabilities [Line Items]    
Accrued rebates 4,479 3,811
Other accruals 430 528
Other noncurrent liabilities [Member]    
Schedule Of Accrued Liabilities [Line Items]    
Total accrued rebates and other sales-related accruals $ 612 $ 433
v3.22.4
Acquisitions, Divestitures, Equity-Method Investments, Licensing Arrangements and Collaborative Arrangements - Acquisitions (Details) - USD ($)
$ / shares in Units, $ in Millions
 1 Months Ended 3 Months Ended 11 Months Ended 12 Months Ended
Dec. 31, 2022
Oct. 05, 2022
Oct. 03, 2022
Jun. 09, 2022
Mar. 11, 2022
Nov. 17, 2021
Jul. 30, 2019
Nov. 30, 2021
Dec. 31, 2022
Apr. 03, 2022
Nov. 16, 2021
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Business Acquisition [Line Items]                            
Business acquisition, cash payment, net of cash acquired                       $ 22,997 $ 0 $ 0
Goodwill [1] $ 51,375               $ 51,375     51,375 49,208 49,556
Acquired in-process research and development expenses [2]                       $ 953 3,469 684
Finite-lived intangible asset, useful life                       9 years    
Collaborative Arrangement [Member]                            
Business Acquisition [Line Items]                            
Acquired in-process research and development expenses [3]                       $ 339 $ 1,056 179
Biohaven Ltd [Member] | Collaborative Arrangement [Member]                            
Business Acquisition [Line Items]                            
Tiered royalties, annual net sales threshold     $ 5,250                      
Potential milestone payments     $ 1,100                      
Biohaven Ltd [Member]                            
Business Acquisition [Line Items]                            
Ownership percentage 1.50%                          
Biohaven [Member]                            
Business Acquisition [Line Items]                            
Ownership percentage               2.60%            
Trillium [Member]                            
Business Acquisition [Line Items]                            
Ownership percentage                     2.00%      
ReViral [Member]                            
Business Acquisition [Line Items]                            
Asset acquisition, consideration transferred       $ 536                    
Payments to acquire asset       436                    
Payment for asset acquisition, base payment       425                    
Asset acquisition, contingent consideration       100                    
Acquired in-process research and development expenses       $ 426                    
Trillium [Member]                            
Business Acquisition [Line Items]                            
Asset acquisition, consideration transferred           $ 2,000                
Acquired in-process research and development expenses           $ 2,100                
Asset acquisition, share price (in dollars per share)           $ 18.50                
Asset acquisition, assets acquired           $ 256                
Asset acquisition, liabilities assumed           $ 81                
GBT [Member]                            
Business Acquisition [Line Items]                            
Business acquisition, per share in cash (in dollars per share)   $ 68.50                        
Business acquisition, cash payment, gross   $ 5,700                        
Business acquisition, cash payment, net of cash acquired   5,200                        
Intangible assets   4,400                        
Goodwill   1,100                        
Inventory   $ 681                        
Acquired inventory, selling period   3 years                        
Net deferred tax liabilities   $ 570                        
Assumed long-term debt, paid in full   331                        
GBT [Member] | Restructuring Charges And Acquisition-Related Costs [Member]                            
Business Acquisition [Line Items]                            
Post closing compensation expense   136             $ 136          
Biohaven [Member]                            
Business Acquisition [Line Items]                            
Business acquisition, per share in cash (in dollars per share)     $ 148.50                      
Business acquisition, cash payment, gross     $ 11,500                      
Intangible assets     12,100                      
Goodwill     797                      
Inventory     $ 817                      
Acquired inventory, selling period     2 years                      
Net deferred tax liabilities     $ 566                      
Assumed long-term debt, paid in full     1,400                      
Repayment of assumed debt     863                      
Business acquisition, equity consideration     495                      
Consideration transferred, including equity interest held prior to business combination     11,800                      
Fair value of previously held equity interest in acquiree     300                      
Trade accounts receivable     398                      
Other current liabilities     477                      
Arena [Member]                            
Business Acquisition [Line Items]                            
Business acquisition, per share in cash (in dollars per share)         $ 100                  
Business acquisition, cash payment, gross         $ 6,600                  
Business acquisition, cash payment, net of cash acquired         6,200                  
Intangible assets         5,500                  
Goodwill         1,000                  
Net deferred tax liabilities         506                  
Arena [Member] | Restructuring Charges And Acquisition-Related Costs [Member]                            
Business Acquisition [Line Items]                            
Post closing compensation expense         138         $ 138        
Array [Member]                            
Business Acquisition [Line Items]                            
Business acquisition, per share in cash (in dollars per share)             $ 48              
Business acquisition, cash payment, gross             $ 11,200              
Business acquisition, cash payment, net of cash acquired             10,900              
Intangible assets             6,300              
Goodwill             6,100              
Net deferred tax liabilities             1,100              
Assumed long-term debt, paid in full             451              
Array [Member] | Restructuring Charges And Acquisition-Related Costs [Member]                            
Business Acquisition [Line Items]                            
Post closing compensation expense             $ 157              
Developed Technology Rights [Member]                            
Business Acquisition [Line Items]                            
Finite-lived intangible asset, useful life                       8 years    
Developed Technology Rights [Member] | GBT [Member]                            
Business Acquisition [Line Items]                            
Intangible assets   $ 1,400                        
Acquired intangible assets, useful life   6 years                        
Developed Technology Rights [Member] | Biohaven [Member]                            
Business Acquisition [Line Items]                            
Intangible assets     $ 11,600                      
Acquired intangible assets, useful life     11 years                      
Developed Technology Rights [Member] | Array [Member]                            
Business Acquisition [Line Items]                            
Acquired intangible assets, useful life             16 years              
Identifiable intangible assets             $ 2,000              
IPR&D [Member] | GBT [Member]                            
Business Acquisition [Line Items]                            
Intangible assets   $ 3,000                        
IPR&D [Member] | Biohaven [Member]                            
Business Acquisition [Line Items]                            
Intangible assets     $ 450                      
IPR&D [Member] | Arena [Member]                            
Business Acquisition [Line Items]                            
Intangible assets         5,000                  
IPR&D [Member] | Array [Member]                            
Business Acquisition [Line Items]                            
Identifiable intangible assets             2,800              
Reduction in intangible assets due to measurement period adjustments                           $ 900
Licensing Agreements [Member] | Arena [Member]                            
Business Acquisition [Line Items]                            
Intangible assets         $ 460                  
Licensing Agreements [Member] | Array [Member]                            
Business Acquisition [Line Items]                            
Intangible assets             1,500              
Licensing Agreements, Technology In Development [Member] | Array [Member]                            
Business Acquisition [Line Items]                            
Intangible assets             1,200              
Licensing Agreements, Developed Technology [Member] | Array [Member]                            
Business Acquisition [Line Items]                            
Identifiable intangible assets             $ 360              
Finite-lived intangible asset, useful life             10 years              
[1] As a result of the organizational changes to the commercial structure within the Biopharma operating segment effective in the third quarter of 2022 (see Note 1A), our goodwill was required to be reallocated amongst impacted reporting units. The allocation of goodwill is a complex process that requires, among other things, that we determine the fair value of each reporting unit under our old and new organizational structure and the portions being transferred. We completed this re-allocation during the fourth quarter 2022 and concluded that none of our goodwill was impaired. Our goodwill balance continues to be assigned within the Biopharma reportable segment.
[2] See Note 1L.
[3] Primarily relates to upfront payments to our partners as well as premiums paid on our equity investments in the common stock of our partners.
v3.22.4
Acquisitions, Divestitures, Equity-Method Investments, Licensing Arrangements and Collaborative Arrangements - Divestitures (Details)
€ in Millions
 1 Months Ended 12 Months Ended
Dec. 31, 2021
USD ($)
Nov. 16, 2020
USD ($)
Nov. 13, 2020
USD ($)
Jun. 30, 2020
USD ($)
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Jun. 30, 2020
EUR (€)
May 31, 2020
USD ($)
Mar. 31, 2020
USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                    
Proceeds from issuances of long-term debt         $ 0 $ 997,000,000 $ 5,222,000,000      
Reduction in retained earnings $ (103,394,000,000)       (125,656,000,000) (103,394,000,000)        
Line of Credit [Member]                    
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                    
Line of credit facility, maximum borrowing capacity         321,000,000          
Line of Credit [Member] | Commercial Paper [Member]                    
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                    
Line of credit facility, maximum borrowing capacity       $ 4,000,000,000            
Senior Notes [Member]                    
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                    
Debt instrument, face amount                 $ 4,000,000,000 $ 1,250,000,000
Unsecured Debt [Member] | Senior Notes Due 2021 [Member]                    
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                    
Repurchased debt       $ 1,150,000,000            
Stated interest rate       1.95%       1.95%    
Unsecured Debt [Member] | Senior Notes Due 2023 [Member]                    
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                    
Repurchased debt       $ 342,000,000            
Stated interest rate       5.80%       5.80%    
Discontinued Operations, Disposed of by Sale [Member] | Meridian [Member]                    
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                    
Cash received for disposition 51,000,000         51,000,000        
Loss on sale of discontinued operations––net of tax $ 167,000,000                  
Discontinued Operations, Disposed of by Means Other than Sale, Spinoff [Member] | Upjohn Inc [Member]                    
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                    
Reduction in retained earnings   $ 1,600,000,000                
Cash divested   412,000,000                
Net increase to accumulated other comprehensive loss   423,000,000                
Derecognition of net gains on foreign currency translation adjustment   397,000,000                
Derecognition of prior service credits associated with benefit plans   $ 26,000,000                
Separation-related costs             $ 434,000,000      
Purchaser of Meridian [Member] | Manufacturing and Supply Agreement [Member]                    
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                    
Period of continuing involvement after disposal 3 years                  
Period of continuing involvement after disposal, extension period 2 years                  
Purchaser of Meridian [Member] | Minimum [Member] | Transition Service Agreement [Member]                    
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                    
Period of continuing involvement after disposal 12 months                  
Purchaser of Meridian [Member] | Maximum [Member] | Transition Service Agreement [Member]                    
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                    
Period of continuing involvement after disposal 18 months                  
Viatris [Member]                    
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                    
Nontrade receivables $ 53,000,000         53,000,000        
Nontrade payables         $ 94,000,000          
Payment pursuant to terms of the separation agreement           $ 277,000,000        
Viatris [Member] | Minimum [Member] | Manufacturing and Supply Agreement [Member]                    
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                    
Period of continuing involvement after disposal             4 years      
Viatris [Member] | Maximum [Member] | Transition Service Agreement [Member]                    
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                    
Period of continuing involvement after disposal             3 years      
Viatris [Member] | Maximum [Member] | Manufacturing and Supply Agreement [Member]                    
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                    
Period of continuing involvement after disposal             7 years      
Viatris [Member] | Discontinued Operations, Disposed of by Means Other than Sale, Spinoff [Member] | Upjohn Inc [Member]                    
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                    
Cash received for disposition     $ 12,000,000,000              
Upjohn Inc and Upjohn Finance B.V. [Member]                    
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                    
Proceeds from issuances of long-term debt       $ 11,400,000,000            
Upjohn Inc and Upjohn Finance B.V. [Member] | Senior Notes [Member]                    
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                    
Debt instrument, face amount       600,000,000            
Upjohn Inc [Member]                    
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                    
Principal amount       $ 7,450,000,000            
Upjohn Finance B.V. [Member]                    
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                    
Principal amount | €               € 3,600    
Viatris [Member]                    
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                    
Ratio, shares received for each share held     0.124079              
Noncontrolling interest, ownership percentage by parent   57.00%                
Viatris [Member] | Mylan [Member]                    
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                    
Ratio, shares received for each share held     1              
Noncontrolling interest, ownership percentage by noncontrolling owners   43.00%                
v3.22.4
Acquisitions, Divestitures, Equity-Method Investments, Licensing Arrangements and Collaborative Arrangements - Summarized Financial Information of Discontinued Operations (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Costs and expenses:        
Discontinued operations––net of tax   $ 6 $ (434) $ 2,529
Certain legal matters, net [1]   230 182 28
Discontinued Operations [Member]        
Income Statement Disclosures        
Revenues [2]   0 277 7,572
Costs and expenses:        
Cost of sales [2]   0 204 2,106
Selling, informational and administrative expenses [2]   8 26 1,682
Research and development expenses [2]   0 9 224
Acquired in-process research and development expenses [2]   0 0 0
Amortization of intangible assets [2]   0 45 224
Restructuring charges and certain acquisition-related costs [2]   0 2 29
Other income [2]   (20)    
Other expense [2]     365 428
Pre-tax income/(loss) from discontinued operations [2]   12 (375) 2,879
Provision/(benefit) for taxes on income [2]   13 (107) 349
Income/(loss) from discontinued operations––net of tax [2]   (1) (268) 2,529
Pre-tax gain/(loss) on sale of discontinued operations [2]   10 (211) 0
Provision/(benefit) for taxes on income [2]   2 (44) 0
Gain/(loss) on sale of discontinued operations––net of tax [2]   7 (167) 0
Discontinued operations––net of tax [2]   $ 6 (434) 2,529
Discontinued Operations [Member] | Upjohn Inc and Upjohn Finance B.V. [Member]        
Costs and expenses:        
Interest expense       116
Discontinued Operations [Member] | Upjohn Finance B. V.        
Costs and expenses:        
Pre-tax charges related to remeasurement of Euro debt       $ 223
Discontinued Operations, Disposed of by Sale [Member] | Meridian [Member]        
Costs and expenses:        
Gain/(loss) on sale of discontinued operations––net of tax $ (167)      
Discontinued Operations, Disposed of by Sale [Member] | Meridian [Member] | Epi Pen [Member]        
Costs and expenses:        
Certain legal matters, net     $ 345  
[1] 2022 primarily includes certain product liability and other expenses related to products discontinued and/or divested by Pfizer. 2021 primarily includes certain product liability expenses related to products discontinued and/or divested by Pfizer, and to a lesser extent, legal obligations related to pre-acquisition commitments.
[2] In 2022, Discontinued operations—net of tax relates to post-close adjustments. In 2021, Discontinued operations—net of tax primarily includes (i) the operations of Meridian prior to its sale on December 31, 2021 recognized in Income/(loss) from discontinued operations—net of tax, which includes a pre-tax amount to resolve a MDL relating to EpiPen against the Company in the U.S. District Court for the District of Kansas for $345 million; and (ii) the after tax loss of $167 million related to the sale of Meridian recognized in Gain/(loss) on sale of discontinued operations––net of tax. To a much lesser extent, Discontinued operations—net of tax in 2021 also includes the operations of the Mylan-Japan collaboration prior to its termination on December 21, 2020 and post-close adjustments directly related to our former Upjohn and Nutrition discontinued businesses, including adjustments for tax, benefits and legal-related matters recognized in Income/(loss) from discontinued operations—net of tax. In 2020, Discontinued operations—net of tax relates to the operations of the Upjohn Business, Meridian and the Mylan-Japan collaboration and includes the impact of the 2021 MTM change in accounting principle, pre-tax interest expense of $116 million associated with the U.S. dollar and Euro denominated senior unsecured notes issued by Upjohn Inc. and Upjohn Finance B.V. in the second quarter of 2020 and pre-tax charges of $223 million related to the remeasurement of Euro debt issued by Upjohn Finance B.V. in the second quarter of 2020.
v3.22.4
Acquisitions, Divestitures, Equity-Method Investments, Licensing Arrangements and Collaborative Arrangements - Equity Method Investment (Details)
€ in Millions, £ in Millions
 1 Months Ended 12 Months Ended
Jul. 31, 2022
USD ($)
Jul. 31, 2022
GBP (£)
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Jul. 18, 2022
Jul. 03, 2022
USD ($)
Jul. 03, 2022
GBP (£)
Mar. 31, 2022
USD ($)
Mar. 31, 2022
EUR (€)
Mar. 31, 2022
GBP (£)
May 31, 2020
USD ($)
Mar. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Jul. 31, 2019
Dec. 31, 2016
USD ($)
Schedule of Equity Method Investments [Line Items]                                
Equity-method investments     $ 11,033,000,000 $ 16,472,000,000                        
Dividend received, return of capital [1]     3,960,000,000 0 $ 0                      
Other short-term borrowings [2]     385,000,000 605,000,000                        
Senior Notes [Member]                                
Schedule of Equity Method Investments [Line Items]                                
Debt instrument, face amount                       $ 4,000,000,000 $ 1,250,000,000      
1.365% Consumer Healthcare JV Loan [Member] | Loans Payable                                
Schedule of Equity Method Investments [Line Items]                                
Debt instrument, face amount | £               £ 2,900                
Other short-term borrowings             $ 3,700,000,000                  
Stated interest rate             1.365% 1.365%                
Repurchased debt | £   £ 2,900                            
Haleon/Consumer Healthcare JV [Member]                                
Schedule of Equity Method Investments [Line Items]                                
Equity method investment, ownership percentage           32.00%     32.00% 32.00% 32.00%       32.00%  
Equity-method investments     10,800,000,000 16,300,000,000                        
Equity-method investment, quoted market value     11,700,000,000                          
Dividends received, total $ 4,200,000,000 £ 3,500 4,500,000,000                          
Dividend received, return of capital $ 4,000,000,000   4,000,000,000                          
Dividend received, distribution     584,000,000                          
Decrease due to foreign currency translation     1,400,000,000                          
Equity method investment earnings     536,000,000 495,000,000 417,000,000                      
Equity method investment, adjustment of basis differences     $ 100,000,000                          
Consumer Healthcare JV [Member]                                
Schedule of Equity Method Investments [Line Items]                                
Difference between carrying amount and underlying equity                           $ 4,800,000,000    
ViiV [Member]                                
Schedule of Equity Method Investments [Line Items]                                
Equity method investment, ownership percentage     11.70%                          
Equity-method investments                               $ 0
Dividend income     $ 314,000,000 $ 166,000,000 $ 278,000,000                      
GSK [Member] | Haleon/Consumer Healthcare JV [Member]                                
Schedule of Equity Method Investments [Line Items]                                
Equity method investment, ownership percentage                             68.00%  
Haleon/Consumer Healthcare JV [Member] | Senior Notes, USD Denominated [Member] | Senior Notes [Member]                                
Schedule of Equity Method Investments [Line Items]                                
Debt instrument, face amount                 $ 8,750,000,000              
Haleon/Consumer Healthcare JV [Member] | Senior Notes, EUR Denominated [Member] | Senior Notes [Member]                                
Schedule of Equity Method Investments [Line Items]                                
Debt instrument, face amount | €                   € 2,350            
Haleon/Consumer Healthcare JV [Member] | Senior Notes, GBP Denominated [Member] | Senior Notes [Member]                                
Schedule of Equity Method Investments [Line Items]                                
Debt instrument, face amount | £                     £ 700          
Haleon/Consumer Healthcare JV [Member] | Disposed of by Sale, Not Discontinued Operations [Member] | GSK [Member]                                
Schedule of Equity Method Investments [Line Items]                                
Proposed percent of ownership disposal                 80.00% 80.00% 80.00%          
Minimum [Member] | Consumer Healthcare JV [Member]                                
Schedule of Equity Method Investments [Line Items]                                
Excess basis amortization period     8 years                          
Maximum [Member] | Consumer Healthcare JV [Member]                                
Schedule of Equity Method Investments [Line Items]                                
Excess basis amortization period     20 years                          
[1] See Note 2C.
[2] Primarily includes cash collateral. See Note 7F.
v3.22.4
Acquisitions, Divestitures, Equity-Method Investments, Licensing Arrangements and Collaborative Arrangements - Summarized Financial Information of Equity Method Investee (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Oct. 02, 2022
Dec. 31, 2021
Oct. 03, 2021
Dec. 31, 2020
Sep. 27, 2020
Dec. 31, 2019
Equity Method Investment, Summarized Financial Information, Balance Sheet [Abstract]              
Current assets $ 51,259   $ 59,693        
Total assets 197,205   181,476        
Current liabilities 42,138   42,671        
Total liabilities 101,288   104,013        
Total net equity/(deficit) attributable to shareholders 95,661   77,201        
Equity attributable to noncontrolling interests 256   262        
Total equity 95,916   77,462   $ 63,473   $ 63,447
Equity Method Investment, Summarized Financial Information [Abstract]              
Revenues 100,330   81,288   41,651    
Income from continuing operations 31,401   22,459   6,666    
Net income 31,407   22,025   9,195    
Income attributable to shareholders 31,372   21,979   9,159    
Haleon/Consumer Healthcare JV [Member]              
Equity Method Investment, Summarized Financial Information, Balance Sheet [Abstract]              
Current assets   $ 5,932   $ 6,890      
Noncurrent assets   35,204   39,445      
Total assets   41,137   46,335      
Current liabilities   5,235   5,133      
Noncurrent liabilities   17,220   5,218      
Total liabilities   22,455   10,351      
Total net equity/(deficit) attributable to shareholders   18,455   35,705      
Equity attributable to noncontrolling interests   227   279      
Total equity   18,682   35,984      
Equity Method Investment, Summarized Financial Information [Abstract]              
Revenues   13,566   12,836   $ 12,720  
Cost of sales   (5,081)   (4,755)   (5,439)  
Gross profit   8,486   8,081   7,281  
Income from continuing operations   1,745   1,614   1,350  
Net income   1,745   1,614   1,350  
Income attributable to shareholders   $ 1,675   $ 1,547   $ 1,307  
ViiV [Member]              
Equity Method Investment, Summarized Financial Information, Balance Sheet [Abstract]              
Current assets 4,043   3,608        
Noncurrent assets 3,014   3,563        
Total assets 7,057   7,171        
Current liabilities 3,780   3,497        
Noncurrent liabilities 5,996   6,536        
Total liabilities 9,777   10,033        
Total net equity/(deficit) attributable to shareholders (2,720)   (2,862)        
Equity Method Investment, Summarized Financial Information [Abstract]              
Revenues 6,955   6,380   6,224    
Cost of sales (819)   (682)   (574)    
Gross profit 6,135   5,698   5,650    
Income from continuing operations 3,108   2,040   2,012    
Net income 3,108   2,040   2,012    
Income attributable to shareholders $ 3,108   $ 2,040   $ 2,012    
v3.22.4
Acquisitions, Divestitures, Equity-Method Investments, Licensing Arrangements and Collaborative Arrangements - Licensing Arrangements (Details) - Valneva [Member] - Licensing Agreements [Member]
€ in Millions, $ in Millions
 1 Months Ended 3 Months Ended 24 Months Ended
Dec. 31, 2022
Apr. 30, 2020
USD ($)
Jun. 30, 2022
USD ($)
Jun. 28, 2020
USD ($)
Dec. 31, 2022
USD ($)
Jun. 30, 2022
EUR (€)
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]            
Maximum potential consideration   $ 308        
Potential early commercialization milestones   $ 143        
Development cost ownership percentage   30.00% 40.00%      
Investment amount     $ 95     € 90.5
Tiered royalties   19.00%        
Potential cumulative sales milestones     $ 100      
Ownership percentage 6.90%          
Acquired In-Process Research and Development Expense [Member]            
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]            
Payment for licensing arrangement       $ 130 $ 35  
Minimum [Member]            
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]            
Tiered royalties     14.00%      
Maximum [Member]            
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]            
Tiered royalties     22.00%      
v3.22.4
Acquisitions, Divestitures, Equity-Method Investments, Licensing Arrangements and Collaborative Arrangements - Collaborative Arrangements (Detail) - USD ($)
 1 Months Ended 3 Months Ended 12 Months Ended
Dec. 31, 2022
Oct. 03, 2022
Jan. 04, 2022
Dec. 30, 2021
Dec. 24, 2021
Jul. 21, 2021
Dec. 26, 2020
Apr. 09, 2020
Dec. 31, 2020
Apr. 30, 2020
Dec. 31, 2021
Oct. 03, 2021
Jun. 28, 2020
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Sep. 29, 2020
Jul. 31, 2020
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]                                    
Acquired in-process research and development expenses [1]                           $ 953,000,000 $ 3,469,000,000 $ 684,000,000    
Finite-lived intangible assets, gross carrying amount $ 88,763,000,000                   $ 76,552,000,000     88,763,000,000 76,552,000,000      
Research and development expenses [2]                           11,428,000,000 10,360,000,000 8,709,000,000    
Biohaven [Member]                                    
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]                                    
Business acquisition, per share in cash (in dollars per share)   $ 148.50                                
Business acquisition, cash payment   $ 11,500,000,000                                
Developed Technology Rights [Member]                                    
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]                                    
Finite-lived intangible assets, gross carrying amount [3] $ 85,604,000,000                   73,346,000,000     85,604,000,000 73,346,000,000      
Collaborative Arrangement [Member]                                    
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]                                    
Acquired in-process research and development expenses [4]                           339,000,000 1,056,000,000 179,000,000    
Research and development expenses [5]                           $ (272,000,000) (314,000,000) $ 14,000,000    
Collaborative Arrangement [Member] | BioNTech [Member]                                    
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]                                    
Ownership percentage                           2.70%        
Collaborative Arrangement [Member] | Arvinas, Inc [Member]                                    
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]                                    
Ownership percentage 6.50%                                  
Collaborative Arrangement [Member] | CStone [Member]                                    
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]                                    
Committed investment from collaborator                                 $ 200,000,000  
Ownership percentage                           9.70%        
Collaborative Arrangement [Member] | Biohaven [Member]                                    
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]                                    
Cash payment to collaborators     $ 500,000,000                              
Upfront payment to collaborators     150,000,000                              
Committed investment from collaborator     350,000,000                              
Acquired in-process research and development expenses     $ 263,000,000                              
Collaborative Arrangement [Member] | BioNTech [Member]                                    
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]                                    
Committed investment from collaborator                                   $ 50,000,000
Proceeds received from upfront payments and milestone payments                             $ 188,000,000      
Collaborative Arrangement [Member] | BioNTech [Member] | Shingles Vaccine Program, mRNA-Based [Member]                                    
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]                                    
Committed investment from collaborator       $ 150,000,000                            
Payment to collaborators       225,000,000                            
Potential future milestone payments       200,000,000                            
Collaborative Arrangement [Member] | BioNTech [Member] | Shingles Vaccine Program, mRNA-Based [Member] | Acquired In-Process Research and Development Expense [Member]                                    
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]                                    
Cash payment to collaborators       75,000,000                            
Proceeds received from upfront payments and milestone payments       $ 25,000,000                            
Collaborative Arrangement [Member] | BioNTech [Member] | Coronavirus Vaccine Program, mRNA-Based [Member]                                    
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]                                    
Cash payment to collaborators                   $ 72,000,000                
Committed investment from collaborator                   $ 113,000,000                
Potential future milestone payments               $ 563,000,000                    
Acquired in-process research and development expenses                         $ 98,000,000          
Maximum potential consideration               $ 748,000,000                    
Percentage of costs to be reimbursed               50.00%                    
Collaborative Arrangement [Member] | Beam [Member]                                    
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]                                    
Potential future milestone payments         $ 1,050,000,000.00                          
Acquired in-process research and development expenses                     $ 300,000,000              
Maximum potential consideration         $ 1,350,000,000                          
Development cost ownership percentage         65.00%                          
Collaborative Arrangement [Member] | Beam [Member] | Beam [Member]                                    
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]                                    
Development cost ownership percentage         35.00%                          
Collaborative Arrangement [Member] | Arvinas, Inc [Member]                                    
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]                                    
Committed investment from collaborator           $ 350,000,000                        
Acquired in-process research and development expenses                       $ 706,000,000            
Collaborative arrangement, milestone payment upon approval (up to)           400,000,000                        
Collaborative arrangement, milestone payment upon commercializing (up to)           1,000,000,000                        
Collaborative Arrangement [Member] | Arvinas, Inc [Member] | Acquired In-Process Research and Development Expense [Member]                                    
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]                                    
Cash payment to collaborators           $ 650,000,000                        
Collaborative Arrangement [Member] | Myovant [Member]                                    
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]                                    
Payment to collaborators                 $ 650,000,000                  
Acquired in-process research and development expenses             $ 151,000,000                      
Maximum reimbursement due from collaborators, 2021             100,000,000                      
Maximum reimbursement due from collaborators, 2022             50,000,000                      
Potential milestone payments             4,350,000,000                      
Milestone payments             200,000,000                      
Collaborative Arrangement, tiered sales milestone payments             3,500,000,000                      
Collaborative Arrangement [Member] | Myovant [Member] | Developed Technology Rights [Member]                                    
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]                                    
Finite-lived intangible assets, gross carrying amount             $ 499,000,000                      
[1] See Note 1L.
[2] Exclusive of amortization of intangible assets.
[3] The increase in the gross carrying amounts mainly reflect the impact of the acquisitions of Biohaven and GBT (see Note 2A).
[4] Primarily relates to upfront payments to our partners as well as premiums paid on our equity investments in the common stock of our partners.
[5] Represents net reimbursements (to)/from our partners for research and development expenses incurred.
v3.22.4
Acquisitions, Divestitures, Equity-Method Investments, Licensing Arrangements and Collaborative Arrangements - Schedule of Collaborative Arrangements and Non-collaborative Arrangement Transactions (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]      
Total revenue $ 100,330 $ 81,288 $ 41,651
Cost of sales [1] (34,344) (30,821) (8,484)
Selling, informational and administrative expenses [1] (13,677) (12,703) (11,597)
Research and development expenses [1] (11,428) (10,360) (8,709)
Acquired in-process research and development expenses [2] (953) (3,469) (684)
Other income/(deductions)—net (217) 4,878 (1,213)
Collaborative Arrangement [Member]      
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]      
Revenues—Revenues [3] 437 590 284
Revenues—Alliance revenues [4] 8,537 7,652 5,418
Total revenue 8,974 8,241 5,703
Cost of sales [5] (15,589) (16,169) (61)
Selling, informational and administrative expenses [6] (196) (175) (194)
Research and development expenses [7] 272 314 (14)
Acquired in-process research and development expenses [8] (339) (1,056) (179)
Other income/(deductions)—net [9] $ 664 $ 820 $ 567
[1] Exclusive of amortization of intangible assets.
[2] See Note 1L.
[3] Represents sales to our partners of products manufactured by us.
[4] Substantially all relates to amounts earned from our partners under co-promotion agreements. The increase in 2022 reflects increases in Alliance revenues from Eliquis, Comirnaty and Bavencio, while the increase in 2021 reflects increases in Alliance revenues from Comirnaty, Eliquis and Xtandi.
[5] Primarily relates to amounts paid to collaboration partners for their share of net sales or profits earned in collaboration arrangements where we are the principal in the transaction, and cost of sales for inventory purchased from our partners. The decrease in 2022, as well as the increase in 2021, primarily relate to Comirnaty.
[6] Represents net reimbursements to our partners for selling, informational and administrative expenses incurred.
[7] Represents net reimbursements (to)/from our partners for research and development expenses incurred.
[8] Primarily relates to upfront payments to our partners as well as premiums paid on our equity investments in the common stock of our partners.
[9] Primarily relates to royalties from our collaboration partners.
v3.22.4
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives - Narrative (Detail) - Focused Company Plan [Member]
$ in Millions
Dec. 31, 2022
USD ($)
Restructuring Cost and Reserve [Line Items]  
Restructuring costs incurred to date $ 3,500
Restructuring costs incurred, percent of total expected costs 85.00%
Biopharma [Member]  
Restructuring Cost and Reserve [Line Items]  
Restructuring costs incurred to date $ 1,400
Restructuring charges incurred to date 1,000
End-To-End Research And Development Operations Improvements [Member]  
Restructuring Cost and Reserve [Line Items]  
Expected cost $ 500
v3.22.4
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives - Costs (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Restructuring charges:      
Employee terminations $ 776 $ 680 $ 474
Asset impairments 52 53 66
Exit costs/(credits) 54 8 (6)
Total restructuring charges/(credits) [1] 882 741 535
Transaction costs [2] 144 20 10
Integration costs and other [3] 348 41 34
Restructuring charges and certain acquisition-related costs 1,375 802 579
Additional depreciation - asset restructuring, virtually all of which is recorded in Cost of sales [4] 36 87 17
Implementation costs recorded in our consolidated statements of income as follows:      
Implementation costs [5] 616 472 238
Total costs associated with acquisitions and cost-reduction/productivity initiatives 2,018 1,298 838
Other Income (Expense), Net [Member]      
Restructuring charges:      
Net periodic benefit costs recorded in Other (income)/deductions––net (9) (63) 3
Cost of Sales [Member]      
Restructuring charges:      
Additional depreciation - asset restructuring, virtually all of which is recorded in Cost of sales [4] 34 63 21
Implementation costs recorded in our consolidated statements of income as follows:      
Implementation costs [5] 54 45 40
Selling, Informational and Administrative Expenses [Member]      
Restructuring charges:      
Additional depreciation - asset restructuring, virtually all of which is recorded in Cost of sales [4] 2 23 0
Implementation costs recorded in our consolidated statements of income as follows:      
Implementation costs [5] 560 426 197
Research and Development Expense [Member]      
Restructuring charges:      
Additional depreciation - asset restructuring, virtually all of which is recorded in Cost of sales [4] 0 0 (3)
Implementation costs recorded in our consolidated statements of income as follows:      
Implementation costs [5] $ 2 $ 1 $ 1
[1] Primarily represents cost reduction initiatives. Restructuring charges/(credits) associated with Biopharma: ($354 million charge in 2022, $610 million charge in 2021, and $71 million charge in 2020).
[2] Represents external costs for banking, legal, accounting and other similar services.
[3] 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. 2022 costs mostly related to our acquisitions of Arena and GBT, including $138 million in payments to Arena employees in the first quarter of 2022 and $136 million in payments to GBT employees in the fourth quarter of 2022 for the fair value of previously unvested long-term incentive awards that was recognized as post-closing compensation expense. See Note 2A. 2021 costs primarily related to our acquisition of Trillium. 2020 costs primarily related to our acquisition of Array.
[4] Represents the impact of changes in the estimated useful lives of assets involved in restructuring actions.
[5] Represents external, incremental costs directly related to implementing our non-acquisition-related cost-reduction/productivity initiatives.
v3.22.4
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives - Costs - Footnotes (Detail) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Oct. 05, 2022
Mar. 11, 2022
Dec. 31, 2022
Apr. 03, 2022
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Restructuring Cost and Reserve [Line Items]              
Restructuring charge (credit) [1]         $ 882 $ 741 $ 535
Arena [Member] | Restructuring Charges And Acquisition-Related Costs [Member]              
Restructuring Cost and Reserve [Line Items]              
Post closing compensation expense   $ 138   $ 138      
GBT [Member] | Restructuring Charges And Acquisition-Related Costs [Member]              
Restructuring Cost and Reserve [Line Items]              
Post closing compensation expense $ 136   $ 136        
Biopharma [Member]              
Restructuring Cost and Reserve [Line Items]              
Restructuring charge (credit)         $ 354 $ 610 $ 71
[1] Primarily represents cost reduction initiatives. Restructuring charges/(credits) associated with Biopharma: ($354 million charge in 2022, $610 million charge in 2021, and $71 million charge in 2020).
v3.22.4
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives - Restructuring Accruals (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Restructuring Reserve [Roll Forward]      
Beginning balance $ 1,071 [1] $ 798  
Provision [2] 882 741 $ 535
Utilization and other [3] (750) (468)  
Ending balance 1,204 [4] 1,071 [1] 798
Employee Termination Costs [Member]      
Restructuring Reserve [Roll Forward]      
Beginning balance 1,014 [1] 782  
Provision 776 680  
Utilization and other [3] (594) (449)  
Ending balance 1,196 [4] 1,014 [1] 782
Asset Impairment Charges [Member]      
Restructuring Reserve [Roll Forward]      
Beginning balance 0 [1] 0  
Provision 52 53  
Utilization and other [3] (52) (53)  
Ending balance 0 [4] 0 [1] 0
Exit Costs [Member]      
Restructuring Reserve [Roll Forward]      
Beginning balance 57 [1] 15  
Provision 54 8  
Utilization and other [3] (103) 34  
Ending balance $ 8 [4] $ 57 [1] $ 15
[1] Included in Other current liabilities ($816 million) and Other noncurrent liabilities ($255 million).
[2] Primarily represents cost reduction initiatives. Restructuring charges/(credits) associated with Biopharma: ($354 million charge in 2022, $610 million charge in 2021, and $71 million charge in 2020).
[3] Includes adjustments for foreign currency translation.
[4] Included in Other current liabilities ($991 million) and Other noncurrent liabilities ($213 million).
v3.22.4
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives - Restructuring Accruals - Footnotes (Detail) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Restructuring Cost and Reserve [Line Items]      
Restructuring reserve $ 1,204 [1] $ 1,071 [2] $ 798
Other Current Liabilities [Member]      
Restructuring Cost and Reserve [Line Items]      
Restructuring reserve 991 816  
Other Noncurrent Liabilities [Member]      
Restructuring Cost and Reserve [Line Items]      
Restructuring reserve $ 213 $ 255  
[1] Included in Other current liabilities ($991 million) and Other noncurrent liabilities ($213 million).
[2] Included in Other current liabilities ($816 million) and Other noncurrent liabilities ($255 million).
v3.22.4
Other (Income)/Deductions - Net - Schedule of Other Nonoperating Income (Expense) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Other Income and Expenses [Abstract]      
Interest income $ (251) $ (36) $ (73)
Interest expense [1] 1,238 1,291 1,449
Net interest expense 987 1,255 1,376
Royalty-related income (845) (857) (770)
Net (gains)/losses on asset disposals 0 (99) 237
Net (gains)/losses recognized during the period on equity securities [2],[3] 1,273 (1,344) (540)
Income from collaborations, out-licensing arrangements and sales of compound/product rights [4] (188) (396) (326)
Net periodic benefit costs/(credits) other than service costs (849) (2,547) 311
Certain legal matters, net [5] 230 182 28
Certain asset impairments [6] 421 86 1,691
Haleon/Consumer Healthcare JV equity method (income)/loss [7] (436) (471) (298)
Other, net [8] (378) (687) (497)
Other (income)/deductions––net $ 217 $ (4,878) $ 1,213
[1] Capitalized interest totaled $124 million in 2022, $108 million in 2021 and $96 million in 2020.
[2] Reported in Other (income)/deductions––net. See Note 4.
[3] (b)2022 losses include, among other things, unrealized losses of $986 million related to investments in BioNTech, Allogene Therapeutics, Inc. and Arvinas. 2021 gains included, among other things, unrealized gains of $1.6 billion related to investments in BioNTech and Cerevel Therapeutics Holdings, Inc. 2020 gains included, among other things, unrealized gains of $405 million related to investments in BioNTech and SpringWorks Therapeutics, Inc.
[4] 2022 includes, among other things, $94 million of out-licensing income from multiple licensees. 2021 included, among other things, $188 million of net collaboration income from BioNTech related to Comirnaty and $97 million of milestone income from multiple licensees. 2020 included, among other things, (i) $178 million in milestone income from multiple licensees and (ii) a $75 million upfront payment received from our sale of our CK1 assets to Biogen Inc.
[5] 2022 primarily includes certain product liability and other expenses related to products discontinued and/or divested by Pfizer. 2021 primarily includes certain product liability expenses related to products discontinued and/or divested by Pfizer, and to a lesser extent, legal obligations related to pre-acquisition commitments.
[6] 2022 primarily includes intangible asset impairment charges of: (i) $200 million associated with our Biopharma segment, representing an IPR&D asset for the unapproved indication of symptomatic dilated cardiomyopathy due to a mutation of the gene encoding the lamin A/C protein, acquired in our Array acquisition, and was a result of the Phase 3 trial reaching futility at a pre-planned interim analysis, (ii) $171 million associated with our Biopharma segment, related to developed technology rights acquired in our Hospira acquisition, and reflect updated commercial forecasts mainly reflecting competitive pressures, and (iii) $50 million associated with PC1, related to finite-lived licensing agreements acquired in our Hospira acquisition, and reflects updated contract manufacturing forecasts reflecting changes to market dynamics. 2020 included intangible asset impairment charges associated with our Biopharma segment that reflected, among other things, updated commercial forecasts mainly reflecting competitive pressures: (i) $900 million related to IPR&D assets for unapproved indications of certain cancer medicines, acquired in our Array acquisition; (ii) $528 million related to Eucrisa, a finite-lived developed technology right acquired in our Anacor Pharmaceuticals, LLC acquisition; and (iii) $263 million related to finite-lived developed technology rights for certain generic sterile injectables acquired in our Hospira acquisition.
[7] See Note 2C.
[8] 2022 includes, among other things, (i) dividend income of $314 million from our investment in ViiV, (ii) income net of costs associated with TSAs of $142 million and (iii) charges of $77 million, reflecting the change in the fair value of contingent consideration. 2021 included, among other things, (i) income net of costs associated with TSAs of $288 million, (ii) dividend income of $166 million from our investment in ViiV and (iii) charges of $142 million, reflecting the change in the fair value of contingent consideration. 2020 included, among other things, (i) dividend income of $278 million from our investment in ViiV, (ii) income net of costs associated with TSAs of $114 million and (iii) charges of $105 million, reflecting the change in the fair value of contingent consideration.
v3.22.4
Other (Income)/Deductions - Net - Schedule of Other Nonoperating Income (Expense) - Footnotes (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Derivative [Line Items]      
Interest costs capitalized $ 124 $ 108 $ 96
Unrealized gain (loss) on equity securities [1] (1,400) 1,264 515
Intangible asset impairments 421   1,700
Other income, net [2] 378 687 497
Transition Service Agreement [Member]      
Derivative [Line Items]      
Other income, net 142 288 114
IPR&D [Member]      
Derivative [Line Items]      
Intangible asset impairments [3] 200    
IPR&D [Member] | Biopharma [Member]      
Derivative [Line Items]      
Intangible asset impairments [3] 200    
Licensing Agreements [Member] | Other Income (Expense), Net [Member]      
Derivative [Line Items]      
Proceeds received from upfront payments and milestone payments 94 97 178
BioNTech [Member] | Collaborative Arrangement [Member]      
Derivative [Line Items]      
Proceeds received from upfront payments and milestone payments   188  
Disposed of by Sale, Not Discontinued Operations [Member] | CK1 Assets Sold To Biogen, Inc [Member]      
Derivative [Line Items]      
Cash received for disposition     75
BioNTech, Allogene Therapeutics, Inc and Arvinas [Member]      
Derivative [Line Items]      
Unrealized gain (loss) on equity securities (986)    
BioNTech and Cerevel Therapeutics, LLC [Member]      
Derivative [Line Items]      
Unrealized gain (loss) on equity securities   1,600  
BioNTech and SpringWorks [Member]      
Derivative [Line Items]      
Unrealized gain (loss) on equity securities     405
ViiV [Member]      
Derivative [Line Items]      
Dividend income 314 166 278
Developed Technology Rights [Member]      
Derivative [Line Items]      
Intangible asset impairments [3] 171    
Developed Technology Rights [Member] | Biopharma [Member]      
Derivative [Line Items]      
Intangible asset impairments 171    
Array [Member] | IPR&D [Member] | Biopharma [Member]      
Derivative [Line Items]      
Intangible asset impairments     900
Anacor [Member] | Developed Technology Rights [Member] | Eucrisa [Member] | Biopharma [Member]      
Derivative [Line Items]      
Intangible asset impairments     528
Hospira [Member] | Developed Technology Rights [Member] | Generic Sterile Injectable Product [Member] | Biopharma [Member]      
Derivative [Line Items]      
Intangible asset impairments     263
Hospira [Member] | Licensing Agreements and Other [Member] | Generic Sterile Injectable Product [Member]      
Derivative [Line Items]      
Intangible asset impairments 50    
ViiV [Member]      
Derivative [Line Items]      
Change in fair value of fair value contingent consideration liabilities $ 77 $ 142 $ 105
[1] Included in net unrealized (gains)/losses are observable price changes on equity securities without readily determinable fair values. As of December 31, 2022, there were cumulative impairments and downward adjustments of $193 million and upward adjustments of $203 million. Impairments, downward and upward adjustments were not significant in 2022, 2021 and 2020
[2] 2022 includes, among other things, (i) dividend income of $314 million from our investment in ViiV, (ii) income net of costs associated with TSAs of $142 million and (iii) charges of $77 million, reflecting the change in the fair value of contingent consideration. 2021 included, among other things, (i) income net of costs associated with TSAs of $288 million, (ii) dividend income of $166 million from our investment in ViiV and (iii) charges of $142 million, reflecting the change in the fair value of contingent consideration. 2020 included, among other things, (i) dividend income of $278 million from our investment in ViiV, (ii) income net of costs associated with TSAs of $114 million and (iii) charges of $105 million, reflecting the change in the fair value of contingent consideration.
[3] Reflects intangible assets written down to fair value in 2022. Fair value was determined using the income approach, specifically the multi-period excess earnings method, also known as the discounted cash flow method. We started with a forecast of all the expected net cash flows for the asset and then applied an asset-specific discount rate to arrive at a net present value amount. Some of the more significant estimates and assumptions inherent in this approach include: the amount and timing of the projected net cash flows, which includes the expected impact of competitive, legal and/or regulatory forces on the product; the discount rate, which seeks to reflect the various risks inherent in the projected cash flows; and the tax rate, which seeks to incorporate the geographic diversity of the projected cash flows.
v3.22.4
Other (Income)/Deductions - Net - Schedule of Additional Information About Intangible Assets Impaired (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Intangible Assets, Fair Value Disclosure [1] $ 90  
Intangible asset impairments 421 $ 1,700
Developed Technology Rights [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Intangible assets - Finite [1],[2] 60  
Intangible asset impairments [2] 171  
IPR&D [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Intangible assets - Indefinite [1],[2] 0  
Intangible asset impairments [2] 200  
Licensing Agreements and Other [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Intangible assets - Indefinite [1],[2] 30  
Intangible asset impairments [2] 50  
Level 1 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Intangible Assets, Fair Value Disclosure [1] 0  
Level 1 [Member] | Developed Technology Rights [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Intangible assets - Finite [1],[2] 0  
Level 1 [Member] | IPR&D [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Intangible assets - Indefinite [1],[2] 0  
Level 1 [Member] | Licensing Agreements and Other [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Intangible assets - Indefinite [1],[2] 0  
Level 2 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Intangible Assets, Fair Value Disclosure [1] 0  
Level 2 [Member] | Developed Technology Rights [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Intangible assets - Finite [1],[2] 0  
Level 2 [Member] | IPR&D [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Intangible assets - Indefinite [1],[2] 0  
Level 2 [Member] | Licensing Agreements and Other [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Intangible assets - Indefinite [1],[2] 0  
Level 3 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Intangible Assets, Fair Value Disclosure [1] 90  
Level 3 [Member] | Developed Technology Rights [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Intangible assets - Finite [1],[2] 60  
Level 3 [Member] | IPR&D [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Intangible assets - Indefinite [1],[2] 0  
Level 3 [Member] | Licensing Agreements and Other [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Intangible assets - Indefinite [1],[2] $ 30  
[1] 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.
[2] Reflects intangible assets written down to fair value in 2022. 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.
v3.22.4
Tax Matters - Income from Continuing Operations Before Provision for Taxes on Income (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Income Tax Disclosure [Abstract]      
United States $ 5,032 $ 6,064 $ (2,887)
International 29,697 18,247 9,924
Income from continuing operations before provision/(benefit) for taxes on income [1],[2],[3] $ 34,729 $ 24,311 $ 7,036
[1] Income from continuing operations before provision/(benefit) for taxes on income. Biopharma’s earnings include dividend income from our investment in ViiV of $314 million in 2022, $166 million in 2021 and $278 million in 2020. In connection with the organizational changes effective in the third quarter of 2022, certain functions transferred between Biopharma and corporate enabling functions and certain activities were realigned within the GPD organization. We have reclassified $231 million of costs in 2021 and $222 million of costs in 2020 from corporate enabling functions, which are included in Other business activities, to Biopharma to conform to the current period presentation. Amortization of intangible assets is not allocated to our operating segments for all periods presented.
[2] 2021 v. 2020––The domestic income in 2021 versus domestic loss in 2020 was mainly related to Comirnaty income, lower asset impairment charges, net periodic benefit credits in 2021 versus net periodic benefit costs in 2020 and higher net gains from equity securities, partially offset by higher R&D expenses. The increase in the international income was primarily related to Comirnaty income, net periodic benefit credits in 2021 versus net periodic benefit costs in 2020 and lower asset impairment charges.
[3] 2022 v. 2021––The decrease in domestic income is primarily related to net losses on equity securities in 2022 versus net gains on equity securities in 2021, lower net periodic benefit credits and higher restructuring charges and certain acquisition-related costs, partially offset by Paxlovid income and lower acquired IPR&D expenses. The increase in the international income is primarily related to Paxlovid and Comirnaty income partially offset by lower net periodic benefit credits.
v3.22.4
Tax Matters - Provision for Taxes on Income (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Current income taxes:      
Federal $ 2,744 $ 3,342 $ 372
State and local (20) 34 56
Deferred income taxes:      
Federal (3,271) (3,850) (1,164)
State and local (310) (491) (131)
Total U.S. tax provision/(benefit) (857) (964) (867)
International      
Current income taxes 4,368 2,769 1,517
Deferred income taxes (183) 48 (279)
Total international tax provision/(benefit) 4,185 2,816 1,237
Provision/(benefit) for taxes on income $ 3,328 $ 1,852 $ 370
v3.22.4
Tax Matters - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Income Tax Contingency [Line Items]      
Repatriation tax liability $ 15,000    
Unremitted earnings of international subsidiaries 60,000    
Unrecognized tax benefits excluding associated interest 2,900 $ 4,500  
Deferred tax assets associated with unrecognized tax benefits 1,500 1,500  
Increase (decrease) of interest on income taxes expense (17) 108 $ 89
Unrecognized tax benefits, interest on income taxes accrued 552 601  
Unrecognized accrued interest decrease as a result of cash payments 31 1  
Decrease in unrecognized tax benefits is reasonably possible, amount of unrecorded benefit 100    
Noncurrent Deferred Tax Assets And Other Noncurrent Tax Assets [Member]      
Income Tax Contingency [Line Items]      
Deferred tax assets associated with unrecognized tax benefits 1,500 1,400  
Other Taxes Payable [Member]      
Income Tax Contingency [Line Items]      
Deferred tax assets associated with unrecognized tax benefits $ 45 $ 105  
v3.22.4
Tax Matters - Tax Rate Reconciliation (Details)
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Income Tax Disclosure [Abstract]      
U.S. statutory income tax rate 21.00% 21.00% 21.00%
Taxation of non-U.S. operations [1],[2] (5.00%) (4.30%) (9.90%)
Tax settlements and resolution of certain tax positions [3] (3.00%) (0.40%) (2.70%)
Foreign-Derived Intangible Income deduction [4] (1.90%) (0.60%) 0.00%
Certain Consumer Healthcare JV initiatives [3] 0.00% (6.00%)  
U.S. R&D tax credit (0.60%) (0.50%) (1.40%)
Interest [5] 0.20% 0.40% 1.10%
All other, net [6] (1.10%) (2.00%) (2.80%)
Effective tax rate for income from continuing operations 9.60% 7.60% 5.30%
[1] For taxation of non-U.S. operations, this rate impact reflects the income tax rates and relative earnings in the locations where we do business outside the U.S., together with the U.S. tax cost on our international operations, changes in uncertain tax positions not included in the reconciling item called “Tax settlements and resolution of certain tax positions,” as well as changes in valuation allowances. Specifically: (i) the jurisdictional location of earnings is a significant component of our effective tax rate each year, and the rate impact of this component is influenced by the specific location of non-U.S. earnings and the level of such earnings as compared to our total earnings; (ii) the U.S. tax implications of our foreign operations is a significant component of our effective tax rate each year and generally offsets some of the reduction to our effective tax rate each year resulting from the jurisdictional location of earnings; (iii) the impact of certain tax initiatives; and (iv) the impact of changes in uncertain tax positions not included in the reconciling item called “Tax settlements and resolution of certain tax positions” is a component of our effective tax rate each year that can result in either an increase or decrease to our effective tax rate. The jurisdictional mix of earnings, which includes the impact of the location of earnings as well as the U.S. tax cost on our international operations, can vary as a result of operating fluctuations in the normal course of business and as a result of the extent and location of other income and expense items, such as restructuring charges, asset impairments and gains and losses on strategic business decisions. See also Note 5A for the components of pre-tax income and Provision/(benefit) for taxes on income, which is based on the location of the taxing authorities, and for information about settlements and other items impacting Provision/(benefit) for taxes on income.
[2] In all years, the reduction in our effective tax rate is a result of the jurisdictional location of earnings and is largely due to lower tax rates in certain jurisdictions, as well as manufacturing and other incentives for our subsidiaries in Singapore and, to a lesser extent, in Puerto Rico. We benefit from Puerto Rican tax incentives pursuant to a grant that expires during 2053. Under such grant, we are partially exempt from income, property and municipal taxes. In Singapore, we benefit from incentive tax rates effective through 2048 on income from manufacturing and other operations.
[3] See Note 5A.
[4] The higher rate benefit from the Foreign-Derived Intangible Income deduction in 2022 is mainly the result of the TCJA requirement to capitalize R&D costs for tax years beginning after December 31, 2021.
[5] Includes changes in interest related to our uncertain tax positions not included in the reconciling item called “Tax settlements and resolution of certain tax positions”.
[6] All other, net is primarily due to routine business operations.
v3.22.4
Tax Matters - Deferred Taxes (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Deferred Tax Assets    
Prepaid/deferred items - Deferred tax assets [1] $ 1,768 $ 1,889
Accrued/deferred royalties - Deferred tax assets [1] 2,127 777
Inventories - Deferred tax assets [1] 672 408
Intangible assets - Deferred tax assets [1],[2] 1,445 1,542
Property, plant and equipment - Deferred tax assets [1] 112 117
Employee benefits - Deferred tax assets [1],[3] 1,314 1,594
Restructurings and other charges - Deferred tax assets [1] 302 303
Legal and product liability reserves - Deferred tax assets [1] 385 373
Research and development - Deferred tax assets [1],[4] 4,137 1,656
Net operating loss/tax credit carryforwards - Deferred tax assets [1],[5],[6] 2,224 1,431
State and local tax adjustments - Deferred tax assets [1] 151 197
Investments - Deferred tax assets [1],[7] 91 70
All other - Deferred tax assets [1] 78 89
Subtotal - Deferred tax assets [1] 14,806 10,446
Valuation allowance [1] (1,541) (1,462)
Total deferred taxes - Deferred tax assets [1] 13,265 8,983
Deferred Tax Liabilities    
Prepaid/deferred items - Deferred tax liabilities [1] (533) (456)
Inventories - Deferred tax liabilities [1] (262) (56)
Intangible assets - Deferred tax liabilities [1],[2] (6,288) (4,577)
Property, plant and equipment - Deferred tax liabilities [1] (1,845) (1,647)
Employee benefits - Deferred tax liabilities [1],[3] (276) (178)
Unremitted earnings - Deferred tax liabilities [1] (51) (45)
Investments - Deferred tax liabilities [1],[7] (208) (689)
All other - Deferred tax liabilities [1] (56) (68)
Deferred tax liabilities, gross [1] (9,519) (7,714)
Net deferred tax asset [1],[8] $ 3,746 $ 1,269
[1] The deferred tax assets and liabilities associated with global intangible low-taxed income are included in the relevant categories. See Note 1Q.
[2] The increase in net deferred tax liabilities in 2022 is primarily due to the acquisition of intangible assets related to GBT, Arena and Biohaven, partially offset by the amortization of intangible assets and certain impairment charges.
[3] The decrease in net deferred tax assets in 2022 is primarily due to changes in pension and postretirement benefit obligations, as well as the performance of plan assets reported in the period. See Note 11.
[4] The increase in deferred tax assets in 2022 is related to the TCJA requirement to capitalize R&D costs for tax years beginning after December 31,2021.
[5] The increase in deferred tax assets in 2022 is primarily due to the acquisition of net operating loss carryforwards and credit carryforwards related to Arena, GBT and Biohaven. See Note 2A.
[6] The amounts in 2022 and 2021 are reduced for unrecognized tax benefits of $1.2 billion and $3.0 billion, respectively, where we have net operating loss carryforwards, similar tax losses, and/or tax credit carryforwards that are available, under the tax law of the applicable jurisdiction, to settle any additional income taxes that would result from the disallowance of a tax position.
[7] The decrease in net deferred tax liabilities in 2022 is primarily due to the impact of foreign currency translation adjustments related to our equity-method investment in Haleon/the Consumer Healthcare JV. See Note 2C.
[8] In 2022, Noncurrent deferred tax assets and other noncurrent tax assets ($4.8 billion), and Noncurrent deferred tax liabilities ($1.0 billion). In 2021, Noncurrent deferred tax assets and other noncurrent tax assets ($1.6 billion), and Noncurrent deferred tax liabilities ($0.3 billion).
v3.22.4
Tax Matters - Deferred Taxes - Footnotes (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Income Tax Examination [Line Items]    
Reduction for unrecognized tax benefit $ 1,200 $ 3,000
Net deferred tax asset [1],[2] 3,746 1,269
Noncurrent Deferred Tax Assets And Other Noncurrent Tax Assets [Member]    
Income Tax Examination [Line Items]    
Net deferred tax asset 4,800 1,600
Noncurrent Deferred Tax Liabilities [Member]    
Income Tax Examination [Line Items]    
Net deferred tax liability $ 1,000 $ 300
[1] In 2022, Noncurrent deferred tax assets and other noncurrent tax assets ($4.8 billion), and Noncurrent deferred tax liabilities ($1.0 billion). In 2021, Noncurrent deferred tax assets and other noncurrent tax assets ($1.6 billion), and Noncurrent deferred tax liabilities ($0.3 billion).
[2] The deferred tax assets and liabilities associated with global intangible low-taxed income are included in the relevant categories. See Note 1Q.
v3.22.4
Tax Matters - Reconciliation of Gross Unrecognized Tax Benefits (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Balance, beginning $ (6,068) [1] $ (5,595) [1] $ (5,381)
Acquisitions (52) 0 37
Divestitures [2] 0 0 265
Increases based on tax positions taken during a prior period [3] (67) (111) (232)
Decreases based on tax positions taken during a prior period [3],[4] 1,339 103 64
Decreases based on settlements for a prior period [4],[5] 842 24 15
Increases based on tax positions taken during the current period [3] (701) (550) (411)
Impact of foreign exchange 90 22 (72)
Other, net [3],[6] 122 40 120
Balance, ending [1] $ (4,494) $ (6,068) $ (5,595)
[1] In 2022, included in Income taxes payable ($40 million), Other current assets ($3 million), Noncurrent deferred tax assets and other noncurrent tax assets ($1.2 billion), Noncurrent deferred tax liabilities ($5 million) and Other taxes payable ($3.2 billion). In 2021, included in Income taxes payable ($19 million), Other current assets ($42 million), Noncurrent deferred tax assets and other noncurrent tax assets ($3.0 billion), Noncurrent deferred tax liabilities ($5 million) and Other taxes payable ($3.0 billion).
[2] For 2020, related to the separation of Upjohn. See Note 2B.
[3] Primarily included in Provision/(benefit) for taxes on income.
[4] Primarily related to effectively settling certain issues with the U.S. and foreign tax authorities. See Note 5A.
[5] Primarily related to cash payments and reductions of tax attributes.
[6] Primarily related to decreases as a result of a lapse of applicable statutes of limitations.
v3.22.4
Tax Matters - Reconciliation of Gross Unrecognized Tax Benefits - Footnotes (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
 [1]
Dec. 31, 2019
Income Tax Contingency [Line Items]        
Unrecognized tax benefits $ 4,494 [1] $ 6,068 [1] $ 5,595 $ 5,381
Income Taxes Payable [Member]        
Income Tax Contingency [Line Items]        
Unrecognized tax benefits 40 19    
Other Current Tax Assets [Member]        
Income Tax Contingency [Line Items]        
Unrecognized tax benefits 3 42    
Noncurrent Deferred Tax Assets And Other Noncurrent Tax Assets [Member]        
Income Tax Contingency [Line Items]        
Unrecognized tax benefits 1,200 3,000    
Noncurrent Deferred Tax Liabilities [Member]        
Income Tax Contingency [Line Items]        
Unrecognized tax benefits 5 5    
Other Taxes Payable [Member]        
Income Tax Contingency [Line Items]        
Unrecognized tax benefits $ 3,200 $ 3,000    
[1] In 2022, included in Income taxes payable ($40 million), Other current assets ($3 million), Noncurrent deferred tax assets and other noncurrent tax assets ($1.2 billion), Noncurrent deferred tax liabilities ($5 million) and Other taxes payable ($3.2 billion). In 2021, included in Income taxes payable ($19 million), Other current assets ($42 million), Noncurrent deferred tax assets and other noncurrent tax assets ($3.0 billion), Noncurrent deferred tax liabilities ($5 million) and Other taxes payable ($3.0 billion).
v3.22.4
Tax Matters - Taxes on Items of Other Comprehensive Income/(Loss) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Tax Expense/(Benefit) on Other Comprehensive Income/(Loss)      
Foreign currency translation adjustments, net [1] $ (126) $ 43 $ (119)
Unrealized holding gains/(losses) on derivative financial instruments, net 183 84 (88)
Reclassification adjustments for (gains)/losses included in net income (270) 29 (25)
Other comprehensive income (loss), derivatives qualifying as hedges, tax, total (87) 114 (113)
Unrealized holding gains/(losses) on available-for-sale securities, net (164) (44) 45
Reclassification adjustments for (gains)/losses included in net income 226 (4) (24)
Other comprehensive income (loss), available-for-sale securities, tax, total 62 (48) 22
Benefit plans: prior service (costs)/credits and other, net (5) 27 12
Reclassification adjustments related to amortization of prior service costs and other, net (29) (47) (31)
Other Comprehensive (Income) Loss, Curtailment Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Prior Service Cost (Credit), Tax (3) (18) 1
Other comprehensive income (loss), pension and other postretirement benefit plans, net prior service cost (credit), tax (37) (38) (17)
Tax provision/(benefit) on other comprehensive income/(loss) $ (187) $ 71 $ (227)
[1] Taxes are not provided for foreign currency translation adjustments relating to investments in international subsidiaries that are expected to be held indefinitely.
v3.22.4
Accumulated Other Comprehensive Loss, Excluding Noncontrolling Interests (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Accumulated Other Comprehensive Income (Loss) [Roll Forward]      
Beginning balance $ 77,462 $ 63,473 $ 63,447
Other comprehensive income/(loss) (2,422) (589) 471
Distribution of Upjohn Business [1]     (2,018)
Ending balance 95,916 77,462 63,473
Accumulated Other Comprehensive Income/(Loss) [Member]      
Accumulated Other Comprehensive Income (Loss) [Roll Forward]      
Beginning balance (5,897) (5,310) (5,367)
Other comprehensive income/(loss) [2] (2,407) (587) 480
Distribution of Upjohn Business [1],[3]     (423)
Ending balance (8,304) (5,897) (5,310)
Foreign Currency Translation Adjustments [Member]      
Accumulated Other Comprehensive Income (Loss) [Roll Forward]      
Beginning balance (6,172) (5,450) (5,936)
Other comprehensive income/(loss) [2] (2,188) (722) 883
Distribution of Upjohn Business [3]     (397)
Ending balance (8,360) (6,172) (5,450)
Derivative Financial Instruments [Member]      
Accumulated Other Comprehensive Income (Loss) [Roll Forward]      
Beginning balance 119 (428) 20
Other comprehensive income/(loss) [2] (531) 547 (448)
Distribution of Upjohn Business [3]     0
Ending balance (412) 119 (428)
Available-For-Sale Securities [Member]      
Accumulated Other Comprehensive Income (Loss) [Roll Forward]      
Beginning balance (220) 116 (35)
Other comprehensive income/(loss) [2] 440 (336) 151
Distribution of Upjohn Business [3]     0
Ending balance 220 (220) 116
Prior Service (Costs)/Credits and Other [Member]      
Accumulated Other Comprehensive Income (Loss) [Roll Forward]      
Beginning balance 377 452 584
Other comprehensive income/(loss) [2] (129) (75) (106)
Distribution of Upjohn Business [3]     (26)
Ending balance $ 248 $ 377 $ 452
[1] See Note 2B.
[2] Amounts do not include foreign currency translation adjustments attributable to noncontrolling interests. Foreign currency translation adjustments include net losses in 2022 and 2021 and net gains in 2020 related to our equity-method investment in Haleon/the Consumer Healthcare JV (see Note 2C), and the impact of our net investment hedging program.
[3] For more information, see Note 2B.
v3.22.4
Financial Instruments - Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Equity securities [1] $ 1,588 $ 5,365
Total other noncurrent assets 13,163 7,679
Total assets 197,205 181,476
Total liabilities $ 1,889 $ 881
Derivative asset, statement of financial position Other current assets, Total other noncurrent assets Other current assets, Total other noncurrent assets
Derivative liability, statement of financial position Other current liabilities, Other noncurrent liabilities Other current liabilities, Other noncurrent liabilities
Recurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Current derivative assets $ 714 $ 709
Noncurrent derivative assets 364 259
Insurance contracts [2] 665 808
Total other noncurrent assets 1,028 1,067
Total assets 25,261 33,552
Current derivative liabilities 704 476
Noncurrent derivative liabilities 1,185 405
Total liabilities 1,889 881
Recurring [Member] | Interest rate contracts [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Current derivative assets 0 4
Noncurrent derivative assets 0 16
Current derivative liabilities 10 0
Noncurrent derivative liabilities 321 0
Recurring [Member] | Foreign exchange contracts [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Current derivative assets 714 704
Noncurrent derivative assets 364 242
Current derivative liabilities 694 476
Noncurrent derivative liabilities 864 405
Government and agency debt - non-U.S. [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities, debt securities 16,195 17,783
Government and agency - U.S. [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities, debt securities 1,313 4,055
Corporate and Other [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities, debt securities 1,586 697
Level 1 [Member] | Recurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Current derivative assets 0 0
Noncurrent derivative assets 0 0
Insurance contracts [2] 0 0
Total other noncurrent assets 0 0
Total assets 2,823 3,849
Current derivative liabilities 0 0
Noncurrent derivative liabilities 0 0
Total liabilities 0 0
Level 1 [Member] | Recurring [Member] | Interest rate contracts [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Current derivative assets 0 0
Noncurrent derivative assets 0 0
Current derivative liabilities 0 0
Noncurrent derivative liabilities 0 0
Level 1 [Member] | Recurring [Member] | Foreign exchange contracts [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Current derivative assets 0 0
Noncurrent derivative assets 0 0
Current derivative liabilities 0 0
Noncurrent derivative liabilities 0 0
Level 2 [Member] | Recurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Current derivative assets 714 709
Noncurrent derivative assets 364 259
Insurance contracts [2] 665 808
Total other noncurrent assets 1,028 1,067
Total assets 22,439 29,703
Current derivative liabilities 704 476
Noncurrent derivative liabilities 1,185 405
Total liabilities 1,889 881
Level 2 [Member] | Recurring [Member] | Interest rate contracts [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Current derivative assets 0 4
Noncurrent derivative assets 0 16
Current derivative liabilities 10 0
Noncurrent derivative liabilities 321 0
Level 2 [Member] | Recurring [Member] | Foreign exchange contracts [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Current derivative assets 714 704
Noncurrent derivative assets 364 242
Current derivative liabilities 694 476
Noncurrent derivative liabilities 864 405
Short-term Investments [Member] | Recurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities, debt securities 18,743 22,014
Total short-term investments 20,331 27,379
Short-term Investments [Member] | Money market funds [Member] | Recurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Equity securities 1,588 5,365
Short-term Investments [Member] | Government and agency debt - non-U.S. [Member] | Recurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities, debt securities 15,915 17,318
Short-term Investments [Member] | Government and agency - U.S. [Member] | Recurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities, debt securities 1,313 4,050
Short-term Investments [Member] | Corporate and Other [Member] | Recurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities, debt securities 1,514 647
Short-term Investments [Member] | Level 1 [Member] | Recurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities, debt securities 0 0
Total short-term investments 0 0
Short-term Investments [Member] | Level 1 [Member] | Money market funds [Member] | Recurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Equity securities 0 0
Short-term Investments [Member] | Level 1 [Member] | Government and agency debt - non-U.S. [Member] | Recurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities, debt securities 0 0
Short-term Investments [Member] | Level 1 [Member] | Government and agency - U.S. [Member] | Recurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities, debt securities 0 0
Short-term Investments [Member] | Level 1 [Member] | Corporate and Other [Member] | Recurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities, debt securities 0 0
Short-term Investments [Member] | Level 2 [Member] | Recurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities, debt securities 18,743 22,014
Total short-term investments 20,331 27,379
Short-term Investments [Member] | Level 2 [Member] | Money market funds [Member] | Recurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Equity securities 1,588 5,365
Short-term Investments [Member] | Level 2 [Member] | Government and agency debt - non-U.S. [Member] | Recurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities, debt securities 15,915 17,318
Short-term Investments [Member] | Level 2 [Member] | Government and agency - U.S. [Member] | Recurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities, debt securities 1,313 4,050
Short-term Investments [Member] | Level 2 [Member] | Corporate and Other [Member] | Recurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities, debt securities 1,514 647
Long-term Investments [Member] | Recurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Equity securities [3] 2,836 3,876
Available-for-sale securities, debt securities 352 521
Total long-term investments 3,188 4,397
Long-term Investments [Member] | Government and agency debt - non-U.S. [Member] | Recurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities, debt securities 280 465
Long-term Investments [Member] | Government and agency - U.S. [Member] | Recurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities, debt securities 0 6
Long-term Investments [Member] | Corporate and Other [Member] | Recurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities, debt securities 72 50
Long-term Investments [Member] | Level 1 [Member] | Recurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Equity securities [3] 2,823 3,849
Available-for-sale securities, debt securities 0 0
Total long-term investments 2,823 3,849
Long-term Investments [Member] | Level 1 [Member] | Government and agency debt - non-U.S. [Member] | Recurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities, debt securities 0 0
Long-term Investments [Member] | Level 1 [Member] | Government and agency - U.S. [Member] | Recurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities, debt securities 0 0
Long-term Investments [Member] | Level 1 [Member] | Corporate and Other [Member] | Recurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities, debt securities 0 0
Long-term Investments [Member] | Level 2 [Member] | Recurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Equity securities [3] 13 27
Available-for-sale securities, debt securities 352 521
Total long-term investments 365 548
Long-term Investments [Member] | Level 2 [Member] | Government and agency debt - non-U.S. [Member] | Recurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities, debt securities 280 465
Long-term Investments [Member] | Level 2 [Member] | Government and agency - U.S. [Member] | Recurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities, debt securities 0 6
Long-term Investments [Member] | Level 2 [Member] | Corporate and Other [Member] | Recurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities, debt securities $ 72 $ 50
[1] Includes money market funds primarily invested in U.S. Treasury and government debt.
[2] Includes life insurance policies held in restricted trusts for U.S. non-qualified employee benefit plans. The underlying invested assets in these contracts are marketable securities, which are carried at fair value, with changes in fair value recognized in Other (income)/deductions—net (see Note 4).
[3] Long-term equity securities of $143 million as of December 31, 2022 and $194 million as of December 31, 2021 were held in restricted trusts for U.S. non-qualified employee benefit plans.
v3.22.4
Financial Instruments - Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis - Footnotes (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Recurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Long-term equity securities held in trust $ 143 $ 194
v3.22.4
Financial Instruments - Assets and Liabilities Not Measured at Fair Value on a Recurring Basis (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Long-term debt $ 32,884 $ 36,195
Level 2 [Member] | Estimated Fair Value [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Long-term debt, excluding the current portion $ 30,000 $ 42,000
v3.22.4
Financial Instruments - Investments - Short-term, Long-term and Equity Method Investments (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Short-term investments    
Equity securities with readily determinable fair values [1] $ 1,588 $ 5,365
Available-for-sale debt securities 18,743 22,014
Held-to-maturity debt securities 1,985 1,746
Total Short-term investments 22,316 29,125
Long-term investments    
Equity securities with readily determinable fair values [2] 2,836 3,876
Available-for-sale debt securities 352 521
Held-to-maturity debt securities 48 34
Private equity securities at cost [2] 800 623
Long-term investments 4,036 5,054
Equity-method investments 11,033 16,472
Total long-term investments and equity-method investments 15,069 21,526
Held-to-maturity cash equivalents $ 679 $ 268
[1] Includes money market funds primarily invested in U.S. Treasury and government debt.
[2] Represent investments in the life sciences sector.
v3.22.4
Financial Instruments - Investments - Debt Securities (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Debt Securities, Held-to-maturity, Maturity, Fair Value [Abstract]    
Debt securities, amortized cost $ 21,556 $ 24,835
Debt securities, gross unrealized gains 304 14
Debt securities, gross unrealized losses (53) (265)
Debt securities, fair value 21,807 24,584
Debt securities maturities, within 1 year, fair value 21,407  
Debt securities maturities, over 1 to 5 years, fair value 375  
Debt securities maturities, over 5 years, fair value 25  
Government and agency debt - non-U.S. [Member]    
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract]    
Available-for-sale debt securities, amortized cost 15,946 18,032
Available-for-sale debt securities, gross unrealized gain 297 13
Available-for-sale debt securities, gross unrealized loss (48) (263)
Available-for-sale securities, debt maturities 16,195 17,783
Available-for-sale Securities, Debt Maturities [Abstract]    
Available-for-sale securities, debt maturities, within 1 year, fair value 15,915  
Available-for-sale securities, debt maturities, over 1 to 5 years, fair value 280  
Available-for-sale securities, debt maturities, over 5 years, fair value 0  
Available-for-sale securities, debt maturities 16,195 17,783
Debt Securities, Held-to-maturity, Maturity [Abstract]    
Held-to-maturity securities, amortized cost 1,542 1,102
Held-to-maturity securities, gross unrealized gains 0 0
Held-to-maturity securities, gross unrealized losses 0 0
Held-to-maturity securities, fair value 1,542 1,102
Debt Securities, Held-to-maturity, Maturity, Fair Value [Abstract]    
Held-to-maturity securities, debt maturities, within 1 year, fair value 1,538  
Held-to-maturity securities, debt maturities, over 1 to 5 years, fair value 3  
Held-to-maturity securities, debt maturities, over 5 years, fair value 1  
Government and agency - U.S. [Member]    
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract]    
Available-for-sale debt securities, amortized cost 1,313 4,056
Available-for-sale debt securities, gross unrealized gain 0 0
Available-for-sale debt securities, gross unrealized loss 0 (1)
Available-for-sale securities, debt maturities 1,313 4,055
Available-for-sale Securities, Debt Maturities [Abstract]    
Available-for-sale securities, debt maturities, within 1 year, fair value 1,313  
Available-for-sale securities, debt maturities, over 1 to 5 years, fair value 0  
Available-for-sale securities, debt maturities, over 5 years, fair value 0  
Available-for-sale securities, debt maturities 1,313 4,055
Corporate and Other [Member]    
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract]    
Available-for-sale debt securities, amortized cost 1,584 698
Available-for-sale debt securities, gross unrealized gain 7 0
Available-for-sale debt securities, gross unrealized loss (4) (1)
Available-for-sale securities, debt maturities 1,586 697
Available-for-sale Securities, Debt Maturities [Abstract]    
Available-for-sale securities, debt maturities, within 1 year, fair value 1,514  
Available-for-sale securities, debt maturities, over 1 to 5 years, fair value 72  
Available-for-sale securities, debt maturities, over 5 years, fair value 0  
Available-for-sale securities, debt maturities 1,586 697
Time deposits and other [Member]    
Debt Securities, Held-to-maturity, Maturity [Abstract]    
Held-to-maturity securities, amortized cost 1,171 947
Held-to-maturity securities, gross unrealized gains 0 0
Held-to-maturity securities, gross unrealized losses 0 0
Held-to-maturity securities, fair value 1,171 $ 947
Debt Securities, Held-to-maturity, Maturity, Fair Value [Abstract]    
Held-to-maturity securities, debt maturities, within 1 year, fair value 1,127  
Held-to-maturity securities, debt maturities, over 1 to 5 years, fair value 20  
Held-to-maturity securities, debt maturities, over 5 years, fair value $ 24  
v3.22.4
Financial Instruments - Investments - Unrealized Gains and Losses Related to Equity Securities (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Fair Value Disclosures [Abstract]      
Net (gains)/losses recognized during the period on investments in equity securities [1],[2] $ 1,273 $ (1,344) $ (540)
Less: Net (gains)/losses recognized during the period on equity securities sold during the period (126) (80) (24)
Net unrealized (gains)/losses during the reporting period on equity securities still held at the reporting date [3] $ 1,400 $ (1,264) $ (515)
[1] Reported in Other (income)/deductions––net. See Note 4.
[2] (b)2022 losses include, among other things, unrealized losses of $986 million related to investments in BioNTech, Allogene Therapeutics, Inc. and Arvinas. 2021 gains included, among other things, unrealized gains of $1.6 billion related to investments in BioNTech and Cerevel Therapeutics Holdings, Inc. 2020 gains included, among other things, unrealized gains of $405 million related to investments in BioNTech and SpringWorks Therapeutics, Inc.
[3] Included in net unrealized (gains)/losses are observable price changes on equity securities without readily determinable fair values. As of December 31, 2022, there were cumulative impairments and downward adjustments of $193 million and upward adjustments of $203 million. Impairments, downward and upward adjustments were not significant in 2022, 2021 and 2020
v3.22.4
Financial Instruments - Investments - Unrealized Gains and Losses Related to Equity Securities - Footnotes (Details)
$ in Millions
Dec. 31, 2022
USD ($)
Fair Value Disclosures [Abstract]  
Cumulative impairment losses and downward price adjustments on equity securities $ 193
Cumulative upward price adjustments on equity securities $ 203
v3.22.4
Financial Instruments - Short-Term Borrowings (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Short-term Debt [Line Items]    
Current portion of long-term debt, principal amount $ 2,550 $ 1,636
Other short-term borrowings, principal amount [1] 385 605
Total short-term borrowings, principal amount 2,935 2,241
Net fair value adjustments 10 0
Total Short-term borrowings, including current portion of long-term debt, carried at historical proceeds, as adjusted 2,945 $ 2,241
Revolving Credit Facility [Member]    
Short-term Debt [Line Items]    
Line of credit facility, maximum borrowing capacity 7,000  
Line of Credit [Member]    
Short-term Debt [Line Items]    
Line of credit facility, maximum borrowing capacity 321  
Line of credit facility, due to expire within one year 292  
Credit Facility, Maturing November 2026 [Member] | Revolving Credit Facility [Member]    
Short-term Debt [Line Items]    
Line of credit facility, maximum borrowing capacity 700  
Credit Facility, Maturing November 2027 [Member] | Revolving Credit Facility [Member]    
Short-term Debt [Line Items]    
Line of credit facility, maximum borrowing capacity $ 6,300  
[1] Primarily includes cash collateral. See Note 7F.
v3.22.4
Financial Instruments - Long-Term Debt (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Debt Instrument [Line Items]    
Net fair value adjustments $ 10 $ 0
Total long-term debt, carried at historical proceeds, as adjusted 32,884 36,195
Current portion of long-term debt, carried at historical proceeds, as adjusted (not included above (3.7% for 2022 and 1.0% for 2021)) $ 2,560 $ 1,636
Unsecured Debt [Member]    
Debt Instrument [Line Items]    
Interest rate, percentage 3.70% 1.00%
Total principal amount of long-term debt [1] $ 32,080 $ 34,948
Net fair value adjustments 959 [1] 1,438
Net unamortized discounts, premiums and debt issuance costs [1] (175) (195)
Other long-term debt [1] 20 4
Total long-term debt, carried at historical proceeds, as adjusted [1] 32,884 36,195
Current portion of long-term debt, carried at historical proceeds, as adjusted (not included above (3.7% for 2022 and 1.0% for 2021)) [1] 2,560 $ 1,636
Unsecured Debt [Member] | Senior Unsecured Debt, Due 2023 [Member]    
Debt Instrument [Line Items]    
Interest rate, percentage   3.20%
Total principal amount of long-term debt [1],[2] $ 0 $ 2,550
Unsecured Debt [Member] | Senior Unsecured Debt, Due 2024 [Member]    
Debt Instrument [Line Items]    
Interest rate, percentage 3.90% 3.90%
Total principal amount of long-term debt [1] $ 2,250 $ 2,250
Unsecured Debt [Member] | Senior Unsecured Debt, Due 2025 [Member]    
Debt Instrument [Line Items]    
Interest rate, percentage 0.80% 0.80%
Total principal amount of long-term debt [1] $ 750 $ 750
Unsecured Debt [Member] | Senior Unsecured Debt, Due 2026 [Member]    
Debt Instrument [Line Items]    
Interest rate, percentage 2.90% 2.90%
Total principal amount of long-term debt [1] $ 3,000 $ 3,000
Unsecured Debt [Member] | Senior Unsecured Debt, Due 2027 [Member]    
Debt Instrument [Line Items]    
Interest rate, percentage 2.10% 2.10%
Total principal amount of long-term debt [1] $ 1,000 $ 1,051
Unsecured Debt [Member] | Senior Unsecured Debt, Due 2028 [Member]    
Debt Instrument [Line Items]    
Interest rate, percentage 4.80% 4.80%
Total principal amount of long-term debt [1] $ 1,660 $ 1,660
Unsecured Debt [Member] | Senior Unsecured Debt, Due 2029-2033 [Member]    
Debt Instrument [Line Items]    
Interest rate, percentage 2.60% 2.60%
Total principal amount of long-term debt [1] $ 5,000 $ 5,000
Unsecured Debt [Member] | Senior Unsecured Debt, Due 2034-2038 [Member]    
Debt Instrument [Line Items]    
Interest rate, percentage 5.50% 5.50%
Total principal amount of long-term debt [1] $ 5,517 $ 5,585
Unsecured Debt [Member] | Senior Unsecured Debt, Due 2039-2043 [Member]    
Debt Instrument [Line Items]    
Interest rate, percentage 4.80% 4.70%
Total principal amount of long-term debt [1] $ 7,153 $ 7,352
Unsecured Debt [Member] | Senior Unsecured Debt, Due 2044-2048 [Member]    
Debt Instrument [Line Items]    
Interest rate, percentage 4.20% 4.20%
Total principal amount of long-term debt [1] $ 3,250 $ 3,250
Unsecured Debt [Member] | Senior Unsecured Debt, Due 2049-2053 [Member]    
Debt Instrument [Line Items]    
Interest rate, percentage 3.40% 3.40%
Total principal amount of long-term debt [1] $ 2,500 $ 2,500
[1] Our long-term debt is generally redeemable by us at any time at varying redemption prices plus accrued and unpaid interest.
[2] Reclassified to the current portion of long-term debt.
v3.22.4
Financial Instruments - Long-Term Debt, Narrative (Details) - USD ($)
$ in Millions
 1 Months Ended
Nov. 30, 2020
Dec. 31, 2022
Dec. 31, 2021
Aug. 31, 2021
May 31, 2020
Mar. 31, 2020
Senior Notes [Member]            
Debt Instrument [Line Items]            
Debt instrument, face amount         $ 4,000 $ 1,250
Weighted average interest rate         2.11% 2.67%
Loss on early retirement of debt $ 36          
Senior Notes [Member] | Senior Unsecured Debt, One Point Nine Five Percent, Due 2021 [Member]            
Debt Instrument [Line Items]            
Repurchased debt $ 1,150          
Stated interest rate 1.95%          
Senior Notes [Member] | Senior Unsecured Debt, Five Point Eight Zero Percent, Due 2023 [Member]            
Debt Instrument [Line Items]            
Repurchased debt $ 342          
Stated interest rate 5.80%          
Senior Notes [Member] | Senior Unsecured Debt, One Point Seven Nine Percent, Due August 2031 [Member]            
Debt Instrument [Line Items]            
Debt instrument, face amount       $ 1,000    
Effective interest rate       1.79%    
Unsecured Debt [Member]            
Debt Instrument [Line Items]            
Weighted average interest rate   3.70% 1.00%      
Unsecured Debt [Member] | Senior Notes Due 2047 [Member]            
Debt Instrument [Line Items]            
Repurchased debt           $ 1,065
v3.22.4
Financial Instruments - Derivative Financial Instruments and Hedging Activities- Narrative (Details)
 12 Months Ended
Dec. 31, 2022
Foreign Exchange Contract [Member]  
Derivative [Line Items]  
Derivative term of contract 2 years
v3.22.4
Financial Instruments - Fair Value of Derivative Financial Instruments and Related Notional Amounts (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Derivative [Line Items]    
Derivative asset $ 1,078 $ 968
Derivative liability 1,889 881
Designated as Hedging Instrument [Member]    
Derivative [Line Items]    
Derivative asset 838 808
Derivative liability 1,527 717
Foreign exchange contracts [Member] | Designated as Hedging Instrument [Member]    
Derivative [Line Items]    
Derivative, notional amount [1] 26,603 29,576
Derivative asset [1] 838 787
Derivative liability [1] 1,196 717
Foreign exchange contracts [Member] | Not Designated as Hedging Instrument [Member]    
Derivative [Line Items]    
Derivative, notional amount 29,814 21,419
Derivative asset 240 160
Derivative liability 362 164
Interest rate contracts [Member] | Designated as Hedging Instrument [Member]    
Derivative [Line Items]    
Derivative, notional amount 2,250 2,250
Derivative asset 0 21
Derivative liability 331 0
Sales [Member] | Foreign exchange contracts [Member] | Designated as Hedging Instrument [Member]    
Derivative [Line Items]    
Derivative, notional amount $ 4,400 $ 4,800
[1] The notional amount of outstanding foreign exchange contracts hedging our intercompany forecasted inventory sales was $4.4 billion as of December 31, 2022 and $4.8 billion as of December 31, 2021.
v3.22.4
Financial Instruments - Derivative Financial Instruments and Hedging Activities (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosures [Line Items]      
Amount of Gains/(Losses) Recognized in OID [1] $ (1,153) $ (192)  
Derivative, Amount of Gains/(Losses) Recognized in OCI 1,444 526 $ (582)
All other net, Amount of Gains/(Losses) Recognized in OCI [1],[2] 0 1  
Amount of Gains/(Losses) Recognized in OCI [1] 2,409 1,210  
Derivative, Amount of Gains/(Losses) Reclassified from OCI into OID and COS [3] 2,062 (134) $ (21)
All other net, Amount of Gains/(Losses) Reclassified from OCI into OID and COS [1],[2] 0 1  
Amount of Gains/(Losses) Reclassified from OCI into OID and COS [1] $ 2,190 $ (25)  
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Other income/(deductions)—net Other income/(deductions)—net  
Designated as Hedging Instrument [Member] | Foreign currency short-term borrowings [Member]      
Derivative Instruments and Hedging Activities Disclosures [Line Items]      
Non-Derivative, Amount of Gains/(Losses) Recognized in OCI [1],[4] $ 26 $ 78  
Non-Derivative, Amount of Gains/(Losses) Reclassified from OCI into OID and COS [1],[4] 0 0  
Designated as Hedging Instrument [Member] | Foreign Currency Debt [Member]      
Derivative Instruments and Hedging Activities Disclosures [Line Items]      
Non-Derivative, Amount of Gains/(Losses) Recognized in OCI [1],[4] 51 86  
Non-Derivative, Amount of Gains/(Losses) Reclassified from OCI into OID and COS [1],[4] 0 0  
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member]      
Derivative Instruments and Hedging Activities Disclosures [Line Items]      
Derivative, Amount of Gains/(Losses) Recognized in OID [1] (1,153) (192)  
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member]      
Derivative Instruments and Hedging Activities Disclosures [Line Items]      
Derivative, Amount of Gains/(Losses) Recognized in OCI [1],[5] 1,296 488  
Derivative, Amount of Gains/(Losses) Recognized in OCI, excluded from effectiveness testing and amortized into earnings [1],[2] 148 38  
Derivative, Amount of Gains/(Losses) Reclassified from OCI into OID and COS [1],[5] 1,916 (173)  
Derivative, Amount of Gains/(Losses) Reclassified from OCI into OID and COS, excluded from effectiveness testing [1],[2] 145 38  
Fair Value Hedging [Member] | Designated as Hedging Instrument [Member] | Interest rate contracts [Member]      
Derivative Instruments and Hedging Activities Disclosures [Line Items]      
Derivative, Amount of Gains/(Losses) on interest rate contract Recognized in OID [1] (337) (7)  
Derivative, Amount of Gains/(Losses) on hedged item Recognized in OID [1] 337 7  
Net Investment Hedging [Member] | Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member]      
Derivative Instruments and Hedging Activities Disclosures [Line Items]      
Derivative, Amount of Gains/(Losses) Recognized in OCI, excluded from effectiveness testing and amortized into earnings [1],[2] 73 52  
Derivative, Amount of Gains/(Losses) Recognized in OCI [1] 816 468  
Derivative, Amount of Gains/(Losses) Reclassified from OCI into OID and COS, excluded from effectiveness testing [1],[2] 129 109  
Derivative, Amount of Gains/(Losses) Reclassified from OCI into OID and COS [1] $ 0 $ 0  
[1] OID = Other (income)/deductions—net, included in Other (income)/deductions—net in the consolidated statements of income. COS = Cost of Sales, included in Cost of sales in the consolidated statements of income. OCI = Other comprehensive income/(loss), included in the consolidated statements of comprehensive income.
[2] The amounts reclassified from OCI were reclassified into OID.
[3] Reclassified into Other (income)/deductions—net and Cost of sales. See Note 7E.
[4] Short-term borrowings and long-term debt include foreign currency borrowings which are used as net investment hedges. The short-term borrowings’ carrying value as of December 31, 2021 was $1.1 billion. The long-term debt carrying values as of December 31, 2022 and December 31, 2021 were $795 million and $844 million, respectively.
[5] The amounts reclassified from OCI into COS were a net gain of $375 million in 2022 and a net loss of $89 million in 2021. The remaining amounts were reclassified from OCI into OID. Based on year-end foreign exchange rates that are subject to change, we expect to reclassify a pre-tax loss of $107 million within the next 12 months into income. The maximum length of time over which we are hedging our exposure to the variability in future foreign exchange cash flows is approximately 20 years and relates to foreign currency debt.
v3.22.4
Financial Instruments - Derivative Financial Instruments and Hedging Activities - Footnotes (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Derivative [Line Items]      
Derivative, Amount of Gains/(Losses) Reclassified from OCI into OID and COS [1] $ 2,062 $ (134) $ (21)
Short-term borrowings, carrying value 2,945 2,241  
Foreign currency short-term borrowings [Member]      
Derivative [Line Items]      
Short-term borrowings, carrying value   1,100  
Foreign Currency Debt [Member]      
Derivative [Line Items]      
Long-term debt, carrying value 795 844  
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member]      
Derivative [Line Items]      
Pre-tax loss expected to be reclassified within the next 12 months $ 107    
Remaining period of hedging exposure 20 years    
Designated as Hedging Instrument [Member] | Cost of Sales [Member] | Foreign Exchange Contract [Member]      
Derivative [Line Items]      
Derivative, Amount of Gains/(Losses) Reclassified from OCI into OID and COS $ 375 [2] $ (89)  
[1] Reclassified into Other (income)/deductions—net and Cost of sales. See Note 7E.
[2] OID = Other (income)/deductions—net, included in Other (income)/deductions—net in the consolidated statements of income. COS = Cost of Sales, included in Cost of sales in the consolidated statements of income. OCI = Other comprehensive income/(loss), included in the consolidated statements of comprehensive income.
v3.22.4
Financial Instruments - Cumulative Basis Adjustments for Fair Value Hedges (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Short-term borrowings, including current portion of long-term debt [Member]    
Derivative [Line Items]    
Carrying Amount of Hedged Assets/Liabilities [1] $ 0 $ 0
Cumulative Amount of Fair Value Hedging Adjustment Increase/(Decrease) to Carrying Amount, Active Hedging Relationships, Liability 0 0
Cumulative Amount of Fair Value Hedging Adjustment Increase/(Decrease) to Carrying Amount, Discontinued Hedging Relationships, Liability 10 0
Long-term debt [Member]    
Derivative [Line Items]    
Carrying Amount of Hedged Assets/Liabilities [1] 2,235 2,233
Cumulative Amount of Fair Value Hedging Adjustment Increase/(Decrease) to Carrying Amount, Active Hedging Relationships, Liability (321) 16
Cumulative Amount of Fair Value Hedging Adjustment Increase/(Decrease) to Carrying Amount, Discontinued Hedging Relationships, Liability $ 1,042 $ 1,154
[1] Carrying amounts exclude the cumulative amount of fair value hedging adjustments.
v3.22.4
Financial Instruments - Credit Risk (Details)
$ in Millions
Dec. 31, 2022
USD ($)
Financial Instruments [Abstract]  
Derivatives in a net liability position $ 888
Collateral posted 901
Derivatives in a net receivable position 435
Cash collateral received $ 337
v3.22.4
Other Financial Information - Inventories (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Other Financial Information [Abstract]    
Finished goods $ 2,603 $ 3,641
Work-in-process 5,519 4,424
Raw materials and supplies 859 994
Inventories [1] 8,981 9,059
Noncurrent inventories not included above [2] $ 5,827 $ 939
[1] The decrease from December 31, 2021 reflects lower levels of Comirnaty, partially offset by new products acquired through recent acquisitions and higher Paxlovid inventory levels.
[2] Included in Other noncurrent assets. The increase from December 31, 2021 is primarily due to strategic inventory build related to Paxlovid. Based on our current estimates and assumptions, there are no recoverability issues for these amounts.
v3.22.4
Other Financial Information - Other Current Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]    
Other current liabilities $ 22,568 $ 24,939
BioNTech [Member] | Comirnaty [Member] | Collaborative Arrangement [Member]    
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]    
Other current liabilities $ 5,200 $ 9,700
v3.22.4
Property, Plant and Equipment (PP&E) - Components of Property, Plant and Equipment (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Property, Plant and Equipment [Line Items]    
Total property, plant and equipment before accumulated depreciation $ 31,448 $ 29,955
Less: Accumulated depreciation 15,174 15,074
Property, plant and equipment 16,274 14,882
Land [Member]    
Property, Plant and Equipment [Line Items]    
Total property, plant and equipment before accumulated depreciation 368 423
Buildings [Member]    
Property, Plant and Equipment [Line Items]    
Total property, plant and equipment before accumulated depreciation 8,832 9,001
Machinery and equipment [Member]    
Property, Plant and Equipment [Line Items]    
Total property, plant and equipment before accumulated depreciation 12,881 12,252
Furniture, fixtures and other [Member]    
Property, Plant and Equipment [Line Items]    
Total property, plant and equipment before accumulated depreciation 4,491 4,457
Construction in progress [Member]    
Property, Plant and Equipment [Line Items]    
Total property, plant and equipment before accumulated depreciation $ 4,875 $ 3,822
Minimum [Member] | Buildings [Member]    
Property, Plant and Equipment [Line Items]    
Useful lives (years) 33 years  
Minimum [Member] | Machinery and equipment [Member]    
Property, Plant and Equipment [Line Items]    
Useful lives (years) 8 years  
Minimum [Member] | Furniture, fixtures and other [Member]    
Property, Plant and Equipment [Line Items]    
Useful lives (years) 3 years  
Maximum [Member] | Buildings [Member]    
Property, Plant and Equipment [Line Items]    
Useful lives (years) 50 years  
Maximum [Member] | Machinery and equipment [Member]    
Property, Plant and Equipment [Line Items]    
Useful lives (years) 20 years  
Maximum [Member] | Furniture, fixtures and other [Member]    
Property, Plant and Equipment [Line Items]    
Useful lives (years) 12 years 6 months  
v3.22.4
Property, Plant, and Equipment (PP&E) - Long-lived Assets by Geographic Areas (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Property, Plant and Equipment [Line Items]    
Property, plant and equipment, net $ 16,274 $ 14,882
U.S. [Member]    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment, net 9,179 8,385
Developed Europe [Member]    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment, net 5,389 5,094
Developed Rest of World [Member]    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment, net 293 347
Emerging Markets [Member]    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment, net $ 1,413 $ 1,056
v3.22.4
Identifiable Intangible Assets and Goodwill - Finite-lived and Indefinite-lived Intangible Assets (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]    
Finite-lived intangible assets, gross carrying amount $ 88,763 $ 76,552
Finite-lived intangible assets, accumulated amortization [1] (58,548) (55,838)
Finite-lived intangible assets, less accumulated amortization 30,215 20,714
Indefinite-lived Intangible Assets [Line Items]    
Total indefinite-lived intangible assets 13,155 4,432
Intangible assets, gross carrying amount [1] 101,919 80,984
Identifiable Intangible Assets, less Accumulated Amortization [1] 43,370 25,146
Brands [Member]    
Indefinite-lived Intangible Assets [Line Items]    
Total indefinite-lived intangible assets 827 827
IPR&D [Member]    
Indefinite-lived Intangible Assets [Line Items]    
Total indefinite-lived intangible assets [2] 11,357 3,092
Licensing Agreements and Other [Member]    
Indefinite-lived Intangible Assets [Line Items]    
Total indefinite-lived intangible assets [2] 971 513
Developed Technology Rights [Member]    
Finite-Lived Intangible Assets [Line Items]    
Finite-lived intangible assets, gross carrying amount [3] 85,604 73,346
Finite-lived intangible assets, accumulated amortization [3] (56,307) (53,732)
Finite-lived intangible assets, less accumulated amortization [3] 29,297 19,614
Brands [Member]    
Finite-Lived Intangible Assets [Line Items]    
Finite-lived intangible assets, gross carrying amount 922 922
Finite-lived intangible assets, accumulated amortization (844) (807)
Finite-lived intangible assets, less accumulated amortization 78 115
Licensing Agreements and Other [Member]    
Finite-Lived Intangible Assets [Line Items]    
Finite-lived intangible assets, gross carrying amount 2,237 2,284
Finite-lived intangible assets, accumulated amortization (1,397) (1,299)
Finite-lived intangible assets, less accumulated amortization $ 841 $ 985
[1] The increase is primarily due to acquisitions (see Note 2A), partially offset by amortization expense.
[2] The increase in the gross carrying amounts mainly reflect the impact of the acquisitions of Arena, GBT and Biohaven (see Note 2A), and for IPR&D, is partially offset by an impairment (see Note 4).
[3] The increase in the gross carrying amounts mainly reflect the impact of the acquisitions of Biohaven and GBT (see Note 2A).
v3.22.4
Identifiable Intangible Assets and Goodwill - Narrative (Details) - USD ($)
$ in Billions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]      
Finite-lived intangible asset, useful life 9 years    
Amortization expense for finite-lived intangible assets $ 3.6 $ 3.7 $ 3.4
Developed Technology Rights [Member]      
Finite-Lived Intangible Assets [Line Items]      
Finite-lived intangible asset, useful life 8 years    
v3.22.4
Identifiable Intangible Assets and Goodwill - Expected Annual Amortization Expense (Details)
$ in Millions
Dec. 31, 2022
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
2023 $ 4,223
2024 3,981
2025 3,780
2026 3,714
2027 $ 3,503
v3.22.4
Identifiable Intangible Assets and Goodwill - Goodwill (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Goodwill [Roll Forward]    
Beginning balance [1] $ 49,208 $ 49,556
Additions [1] 2,917 [2] 0
Impact of foreign exchange [1] (750) (348)
Ending balance [1] $ 51,375 $ 49,208
[1] As a result of the organizational changes to the commercial structure within the Biopharma operating segment effective in the third quarter of 2022 (see Note 1A), our goodwill was required to be reallocated amongst impacted reporting units. The allocation of goodwill is a complex process that requires, among other things, that we determine the fair value of each reporting unit under our old and new organizational structure and the portions being transferred. We completed this re-allocation during the fourth quarter 2022 and concluded that none of our goodwill was impaired. Our goodwill balance continues to be assigned within the Biopharma reportable segment.
[2] Additions relate to our acquisitions of GBT, Arena and Biohaven. See Note 2A.
v3.22.4
Pension and Postretirement Benefit Plans and Defined Contribution Plans - Schedule of Net Periodic Benefit Costs (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Postretirement Benefits Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Service cost $ 29 $ 36 $ 38
Interest cost 27 29 49
Expected return on plan assets (47) (39) (36)
Amortization of prior service credits/(credits) (130) (151) (170)
Actuarial (gains)/losses [1] (440) (167) (165)
Curtailments (18) (82) 0
Special termination benefits 1 2 0
Net periodic benefit cost/(credit) reported in income (578) (372) (282)
Cost/(credit) reported in Other comprehensive income/(loss) 169 107 114
Cost/(credit) recognized in Comprehensive income (410) (265) (168)
U.S. [Member] | Pension Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Service cost 0 0 0
Interest cost 534 455 533
Expected return on plan assets (862) (1,052) (1,015)
Amortization of prior service credits/(credits) 2 (2) (3)
Actuarial (gains)/losses [1] 225 (684) 1,152
Curtailments 0 0 0
Special termination benefits 18 17 1
Net periodic benefit cost/(credit) reported in income (84) (1,265) 668
Cost/(credit) reported in Other comprehensive income/(loss) (2) 2 5
Cost/(credit) recognized in Comprehensive income (86) (1,264) 674
International [Member] | Pension Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Service cost 116 130 146
Interest cost 157 146 164
Expected return on plan assets (296) (327) (314)
Amortization of prior service credits/(credits) (1) (1) (3)
Actuarial (gains)/losses [1] (11) (690) 148
Curtailments (11) (4) 0
Special termination benefits 1 0 0
Net periodic benefit cost/(credit) reported in income (45) (746) 141
Cost/(credit) reported in Other comprehensive income/(loss) (1) 4 5
Cost/(credit) recognized in Comprehensive income $ (46) $ (742) $ 145
[1] Reflects: (i) actuarial remeasurement net gains in 2022, primarily due to increases in discount rates, partially offset by unfavorable plan asset performance, (ii) actuarial remeasurement gains in 2021, primarily due to favorable plan asset performance and increases in discount rates, and (iii) actuarial remeasurement net losses in 2020, primarily due to decreases in discount rates partially offset by favorable plan asset performance.
v3.22.4
Pension and Postretirement Benefit Plans and Defined Contribution Plans - Weighted-Average Actuarial Assumptions (Details)
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Postretirement Benefits Plan [Member]      
Weighted-average assumptions used to determine net periodic benefit cost:      
Discount rate: Pension plans/postretirement plans 2.90% 2.50% 3.20%
Expected return on plan assets 6.30% 6.80% 7.00%
Weighted-average assumptions used to determine benefit obligations at fiscal year-end:      
Discount rate 5.50% 2.90% 2.50%
U.S. [Member] | Pension Plan [Member]      
Weighted-average assumptions used to determine net periodic benefit cost:      
Discount rate: Pension plans/postretirement plans 2.90% 2.60% 3.30%
Expected return on plan assets 6.30% 6.80% 7.00%
Weighted-average assumptions used to determine benefit obligations at fiscal year-end:      
Discount rate 5.40% 2.90% 2.60%
International [Member] | Pension Plan [Member]      
Weighted-average assumptions used to determine net periodic benefit cost:      
Discount rate: Interest cost 1.50% 1.20% 1.50%
Discount rate: Service cost 1.70% 1.40% 1.60%
Expected return on plan assets 3.10% 3.40% 3.60%
Rate of compensation increase 2.80% 2.90% 2.90%
Weighted-average assumptions used to determine benefit obligations at fiscal year-end:      
Discount rate 3.80% 1.60% 1.50%
Rate of compensation increase [1] 3.00% 2.80% 2.90%
[1] The rate of compensation increase is not used to determine the net periodic benefit cost and benefit obligation for the U.S. pension plans as these plans are frozen.
v3.22.4
Pension and Postretirement Benefit Plans and Defined Contribution Plans - Healthcare Cost Trend Rate Assumptions (Details) - Postretirement Benefits Plan [Member]
Dec. 31, 2022
Dec. 31, 2021
Defined Benefit Plan Disclosure [Line Items]    
Healthcare cost trend rate assumed for next year 6.40% 6.00%
Rate to which the cost trend rate is assumed to decline 4.00% 4.00%
v3.22.4
Pension and Postretirement Benefit Plans and Defined Contribution Plans - Obligations and Funded Status (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Amounts recorded in our consolidated balance sheet:      
Noncurrent liabilities $ (2,250) $ (3,724)  
Pension Plan [Member] | Group Annuity Contract [Member]      
Change in benefit obligation      
Benefit obligation, ending 586    
Change in plan assets      
Fair value, ending 588    
Postretirement Benefits Plan [Member]      
Change in benefit obligation      
Benefit obligation, beginning [1] 995 1,238  
Service cost 29 36 $ 38
Interest cost 27 29 49
Employee contributions 75 78  
Plan amendments 24 (116)  
Changes in actuarial assumptions and other [2] (593) (117)  
Foreign exchange impact (5) 1  
Upjohn spin-off [3] 0 0  
Acquisitions/divestitures, net 0    
Curtailments and special termination benefits (3) (8)  
Settlements [4] (39) 0  
Benefits paid (101) (147)  
Benefit obligation, ending [1] 410 995 1,238
Change in plan assets      
Fair value, beginning 753 588  
Actual return on plan assets (106) 89  
Company contributions 65 145  
Employee contributions 75 78  
Foreign exchange impact 0 0  
Upjohn spin-off [3] 0 0  
Acquisitions/divestitures, net 0 0  
Settlements [4] (39) 0  
Benefits paid (101) (147)  
Fair value, ending 647 753 588
Funded status 238 (241)  
Amounts recorded in our consolidated balance sheet:      
Noncurrent assets 322 0  
Current liabilities (6) (6)  
Noncurrent liabilities (78) (235)  
Funded status 238 (241)  
Pre-tax components of cumulative amounts recognized in Accumulated other comprehensive loss:      
Prior service (costs)/credits 413 581  
U.S. [Member] | Pension Plan [Member]      
Change in benefit obligation      
Benefit obligation, beginning [1] 17,150 18,306  
Service cost 0 0 0
Interest cost 534 455 533
Employee contributions 0 0  
Plan amendments 0 0  
Changes in actuarial assumptions and other [2] (4,187) (331)  
Foreign exchange impact (1) 0  
Upjohn spin-off [3] 0 0  
Acquisitions/divestitures, net 61 0  
Curtailments and special termination benefits 18 17  
Settlements [4] (1,698) (785)  
Benefits paid (457) (512)  
Benefit obligation, ending [1] 11,420 17,150 18,306
Change in plan assets      
Fair value, beginning 16,346 16,094  
Actual return on plan assets (3,550) 1,405  
Company contributions 230 143  
Employee contributions 0 0  
Foreign exchange impact 0 0  
Upjohn spin-off [3] 0 0  
Acquisitions/divestitures, net 1    
Settlements [4] (1,698) (785)  
Benefits paid (457) (512)  
Fair value, ending 10,871 16,346 16,094
Funded status (549) (805)  
Amounts recorded in our consolidated balance sheet:      
Noncurrent assets 346 447  
Current liabilities (110) (138)  
Noncurrent liabilities (785) (1,113)  
Funded status (549) (805)  
Pre-tax components of cumulative amounts recognized in Accumulated other comprehensive loss:      
Prior service (costs)/credits (4) (6)  
Pension plans with an ABO in excess of plan assets:      
Fair value of plan assets [5] 86 120  
ABO [5] 981 1,371  
Pension plans with a PBO in excess of plan assets:      
Fair value of plan assets [5] 86 120  
PBO [5] 981 1,371  
U.S. [Member] | Postretirement Benefits Plan [Member]      
Change in plan assets      
Fair value, beginning [6] 753    
Fair value, ending [6] 647 753  
International [Member] | Pension Plan [Member]      
Change in benefit obligation      
Benefit obligation, beginning [1] 11,657 12,001  
Service cost 116 130 146
Interest cost 157 146 164
Employee contributions 9 10  
Plan amendments 0 0  
Changes in actuarial assumptions and other [2] (2,931) 89  
Foreign exchange impact (1,065) (298)  
Upjohn spin-off [3] 37 3  
Acquisitions/divestitures, net (50) 0  
Curtailments and special termination benefits (10) (2)  
Settlements [4] (64) (47)  
Benefits paid (359) (374)  
Benefit obligation, ending [1] 7,497 11,657 12,001
Change in plan assets      
Fair value, beginning 10,729 9,811  
Actual return on plan assets (2,624) 1,106  
Company contributions 156 451  
Employee contributions 9 10  
Foreign exchange impact (1,037) (229)  
Upjohn spin-off [3] 45 2  
Acquisitions/divestitures, net 9    
Settlements [4] (64) (47)  
Benefits paid (359) (374)  
Fair value, ending 6,865 10,729 $ 9,811
Funded status (632) (928)  
Amounts recorded in our consolidated balance sheet:      
Noncurrent assets 783 1,480  
Current liabilities (27) (33)  
Noncurrent liabilities (1,388) (2,376)  
Funded status (632) (928)  
Pre-tax components of cumulative amounts recognized in Accumulated other comprehensive loss:      
Prior service (costs)/credits (34) (35)  
Pension plans with an ABO in excess of plan assets:      
Fair value of plan assets [5] 343 1,304  
ABO [5] 1,600 3,344  
Pension plans with a PBO in excess of plan assets:      
Fair value of plan assets [5] 1,081 1,381  
PBO [5] 2,496 3,789  
Defined benefit plan, accumulated benefit obligation $ 7,200 $ 11,200  
[1] For the U.S. pension plans, the benefit obligation is both the PBO and ABO as these plans are frozen and future benefit accruals no longer increase with future compensation increases. For the international pension plans, the benefit obligation is the PBO. The ABO for our international pension plans was $7.2 billion in 2022 and $11.2 billion in 2021. For the postretirement plans, the benefit obligation is the ABO.
[2] For both 2022 and 2021, primarily includes actuarial gains resulting from increases in discount rates, offset by increases in inflation assumptions for the international plan.
[3] For more information, see Note 2B.
[4] As a result of a group annuity contract entered into between Pfizer and a third party insurance company in July 2022, the third party insurance company assumed future benefit obligations and responsibility for the annuity payments of certain retirees in the Pfizer Consolidated Pension Plan. As of December 31, 2022, $586 million of benefit obligations and $588 million of plan assets are associated with this contract. We expect to finalize the remaining regulatory approvals for this transaction in due course.
[5] Our main U.S. qualified plan, U.S. postretirement plan and many of our international plans were overfunded as of December 31, 2022.
[6] Reflects postretirement plan assets, which support a portion of our U.S. retiree medical plans.
v3.22.4
Pension and Postretirement Benefit Plans and Defined Contribution Plans - Plan Assets (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Postretirement Benefits Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 647 $ 753 $ 588
U.S. [Member] | Pension Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Equity and debt securities, target allocation percentage 100.00%    
Fair value of plan assets $ 10,871 16,346 16,094
U.S. [Member] | Pension Plan [Member] | Level 1 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 1,607 2,332  
U.S. [Member] | Pension Plan [Member] | Level 2 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 6,355 10,726  
U.S. [Member] | Pension Plan [Member] | Level 3 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 1 2  
U.S. [Member] | Pension Plan [Member] | Assets Measured at NAV [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [1] 2,908 3,286  
U.S. [Member] | Pension Plan [Member] | Cash and cash equivalents [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 828 1,326  
U.S. [Member] | Pension Plan [Member] | Cash and cash equivalents [Member] | Minimum [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Equity and debt securities, target allocation percentage 0.00%    
U.S. [Member] | Pension Plan [Member] | Cash and cash equivalents [Member] | Maximum [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Equity and debt securities, target allocation percentage 10.00%    
U.S. [Member] | Pension Plan [Member] | Cash and cash equivalents [Member] | Level 1 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 49 78  
U.S. [Member] | Pension Plan [Member] | Cash and cash equivalents [Member] | Level 2 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 779 1,248  
U.S. [Member] | Pension Plan [Member] | Cash and cash equivalents [Member] | Level 3 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
U.S. [Member] | Pension Plan [Member] | Cash and cash equivalents [Member] | Assets Measured at NAV [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [1] $ 0 0  
U.S. [Member] | Pension Plan [Member] | Equity securities [Member] | Minimum [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Equity and debt securities, target allocation percentage 20.00%    
U.S. [Member] | Pension Plan [Member] | Equity securities [Member] | Maximum [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Equity and debt securities, target allocation percentage 40.00%    
U.S. [Member] | Pension Plan [Member] | Global Equity Securities [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 1,555 2,273  
U.S. [Member] | Pension Plan [Member] | Global Equity Securities [Member] | Level 1 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 1,553 2,233  
U.S. [Member] | Pension Plan [Member] | Global Equity Securities [Member] | Level 2 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 1 38  
U.S. [Member] | Pension Plan [Member] | Global Equity Securities [Member] | Level 3 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 1 2  
U.S. [Member] | Pension Plan [Member] | Global Equity Securities [Member] | Assets Measured at NAV [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [1] 0 0  
U.S. [Member] | Pension Plan [Member] | Equity commingled funds [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 165 1,352  
U.S. [Member] | Pension Plan [Member] | Equity commingled funds [Member] | Level 1 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
U.S. [Member] | Pension Plan [Member] | Equity commingled funds [Member] | Level 2 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 165 1,152  
U.S. [Member] | Pension Plan [Member] | Equity commingled funds [Member] | Level 3 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
U.S. [Member] | Pension Plan [Member] | Equity commingled funds [Member] | Assets Measured at NAV [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [1] $ 0 200  
U.S. [Member] | Pension Plan [Member] | Fixed income securities [Member] | Minimum [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Equity and debt securities, target allocation percentage 45.00%    
U.S. [Member] | Pension Plan [Member] | Fixed income securities [Member] | Maximum [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Equity and debt securities, target allocation percentage 75.00%    
U.S. [Member] | Pension Plan [Member] | Corporate debt [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 3,512 5,566  
U.S. [Member] | Pension Plan [Member] | Corporate debt [Member] | Level 1 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 5 18  
U.S. [Member] | Pension Plan [Member] | Corporate debt [Member] | Level 2 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 3,507 5,548  
U.S. [Member] | Pension Plan [Member] | Corporate debt [Member] | Level 3 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0    
U.S. [Member] | Pension Plan [Member] | Corporate debt [Member] | Assets Measured at NAV [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [1] 0    
U.S. [Member] | Pension Plan [Member] | Government and Agency Obligations [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [2] 1,772 2,533  
U.S. [Member] | Pension Plan [Member] | Government and Agency Obligations [Member] | Level 1 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [2] 0 0  
U.S. [Member] | Pension Plan [Member] | Government and Agency Obligations [Member] | Level 2 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [2] 1,772 2,533  
U.S. [Member] | Pension Plan [Member] | Government and Agency Obligations [Member] | Level 3 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [2] 0 0  
U.S. [Member] | Pension Plan [Member] | Government and Agency Obligations [Member] | Assets Measured at NAV [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [1],[2] 0 0  
U.S. [Member] | Pension Plan [Member] | Fixed Income Commingled Funds [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 16 38  
U.S. [Member] | Pension Plan [Member] | Fixed Income Commingled Funds [Member] | Level 1 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets   0  
U.S. [Member] | Pension Plan [Member] | Fixed Income Commingled Funds [Member] | Level 2 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 16 38  
U.S. [Member] | Pension Plan [Member] | Fixed Income Commingled Funds [Member] | Level 3 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
U.S. [Member] | Pension Plan [Member] | Fixed Income Commingled Funds [Member] | Assets Measured at NAV [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [1] $ 0 0  
U.S. [Member] | Pension Plan [Member] | Other investments [Member] | Minimum [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Equity and debt securities, target allocation percentage 5.00%    
U.S. [Member] | Pension Plan [Member] | Other investments [Member] | Maximum [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Equity and debt securities, target allocation percentage 20.00%    
U.S. [Member] | Pension Plan [Member] | Partnership Interest [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [3] $ 2,152 2,079  
U.S. [Member] | Pension Plan [Member] | Partnership Interest [Member] | Level 1 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [3] 0 3  
U.S. [Member] | Pension Plan [Member] | Partnership Interest [Member] | Level 2 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [3]   0  
U.S. [Member] | Pension Plan [Member] | Partnership Interest [Member] | Level 3 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [3] 0 0  
U.S. [Member] | Pension Plan [Member] | Partnership Interest [Member] | Assets Measured at NAV [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [1],[3] 2,152 2,076  
U.S. [Member] | Pension Plan [Member] | Insurance Contracts [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 116 158  
U.S. [Member] | Pension Plan [Member] | Insurance Contracts [Member] | Level 1 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
U.S. [Member] | Pension Plan [Member] | Insurance Contracts [Member] | Level 2 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 116 158  
U.S. [Member] | Pension Plan [Member] | Insurance Contracts [Member] | Level 3 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
U.S. [Member] | Pension Plan [Member] | Insurance Contracts [Member] | Assets Measured at NAV [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [1] 0 0  
U.S. [Member] | Pension Plan [Member] | Other Commingled Funds [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [4] 756 1,019  
U.S. [Member] | Pension Plan [Member] | Other Commingled Funds [Member] | Level 1 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [4] 0 0  
U.S. [Member] | Pension Plan [Member] | Other Commingled Funds [Member] | Level 2 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [4]   10  
U.S. [Member] | Pension Plan [Member] | Other Commingled Funds [Member] | Level 3 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [4] 0 0  
U.S. [Member] | Pension Plan [Member] | Other Commingled Funds [Member] | Assets Measured at NAV [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [1],[4] $ 756 1,009  
U.S. [Member] | Postretirement Benefits Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Equity and debt securities, target allocation percentage [5] 100.00%    
Fair value of plan assets [5] $ 647 753  
U.S. [Member] | Postretirement Benefits Plan [Member] | Level 1 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [5] 1 3  
U.S. [Member] | Postretirement Benefits Plan [Member] | Level 2 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [5] 646 750  
U.S. [Member] | Postretirement Benefits Plan [Member] | Level 3 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [5]   0  
U.S. [Member] | Postretirement Benefits Plan [Member] | Assets Measured at NAV [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [1],[5]   0  
U.S. [Member] | Postretirement Benefits Plan [Member] | Cash and cash equivalents [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [5] $ 97 85  
U.S. [Member] | Postretirement Benefits Plan [Member] | Cash and cash equivalents [Member] | Minimum [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Equity and debt securities, target allocation percentage 0.00%    
U.S. [Member] | Postretirement Benefits Plan [Member] | Cash and cash equivalents [Member] | Maximum [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Equity and debt securities, target allocation percentage 5.00%    
U.S. [Member] | Postretirement Benefits Plan [Member] | Cash and cash equivalents [Member] | Level 1 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [5] $ 1 3  
U.S. [Member] | Postretirement Benefits Plan [Member] | Cash and cash equivalents [Member] | Level 2 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [5] 96 82  
U.S. [Member] | Postretirement Benefits Plan [Member] | Cash and cash equivalents [Member] | Level 3 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [5]   0  
U.S. [Member] | Postretirement Benefits Plan [Member] | Cash and cash equivalents [Member] | Assets Measured at NAV [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [1],[5]   0  
U.S. [Member] | Postretirement Benefits Plan [Member] | Insurance Contracts [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [5] $ 551 669  
U.S. [Member] | Postretirement Benefits Plan [Member] | Insurance Contracts [Member] | Minimum [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Equity and debt securities, target allocation percentage 95.00%    
U.S. [Member] | Postretirement Benefits Plan [Member] | Insurance Contracts [Member] | Maximum [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Equity and debt securities, target allocation percentage 100.00%    
U.S. [Member] | Postretirement Benefits Plan [Member] | Insurance Contracts [Member] | Level 1 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [5] $ 0    
U.S. [Member] | Postretirement Benefits Plan [Member] | Insurance Contracts [Member] | Level 2 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [5] $ 551 669  
U.S. [Member] | Postretirement Benefits Plan [Member] | Insurance Contracts [Member] | Level 3 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [5]   0  
U.S. [Member] | Postretirement Benefits Plan [Member] | Insurance Contracts [Member] | Assets Measured at NAV [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [1],[5]   0  
International [Member] | Pension Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Equity and debt securities, target allocation percentage 100.00%    
Fair value of plan assets $ 6,865 10,729 9,811
International [Member] | Pension Plan [Member] | Level 1 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 58 191  
International [Member] | Pension Plan [Member] | Level 2 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 3,498 6,672  
International [Member] | Pension Plan [Member] | Level 3 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 1,455 1,677 $ 1,362
International [Member] | Pension Plan [Member] | Assets Measured at NAV [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [1] 1,853 2,189  
International [Member] | Pension Plan [Member] | Cash and cash equivalents [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 221 541  
International [Member] | Pension Plan [Member] | Cash and cash equivalents [Member] | Minimum [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Equity and debt securities, target allocation percentage 0.00%    
International [Member] | Pension Plan [Member] | Cash and cash equivalents [Member] | Maximum [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Equity and debt securities, target allocation percentage 10.00%    
International [Member] | Pension Plan [Member] | Cash and cash equivalents [Member] | Level 1 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 58 191  
International [Member] | Pension Plan [Member] | Cash and cash equivalents [Member] | Level 2 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 163 346  
International [Member] | Pension Plan [Member] | Cash and cash equivalents [Member] | Level 3 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
International [Member] | Pension Plan [Member] | Cash and cash equivalents [Member] | Assets Measured at NAV [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [1] $ 0 3  
International [Member] | Pension Plan [Member] | Equity securities [Member] | Minimum [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Equity and debt securities, target allocation percentage 10.00%    
International [Member] | Pension Plan [Member] | Equity securities [Member] | Maximum [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Equity and debt securities, target allocation percentage 20.00%    
International [Member] | Pension Plan [Member] | Equity commingled funds [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 714 1,453  
International [Member] | Pension Plan [Member] | Equity commingled funds [Member] | Level 1 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
International [Member] | Pension Plan [Member] | Equity commingled funds [Member] | Level 2 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 672 1,386  
International [Member] | Pension Plan [Member] | Equity commingled funds [Member] | Level 3 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
International [Member] | Pension Plan [Member] | Equity commingled funds [Member] | Assets Measured at NAV [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [1] $ 42 67  
International [Member] | Pension Plan [Member] | Fixed income securities [Member] | Minimum [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Equity and debt securities, target allocation percentage 45.00%    
International [Member] | Pension Plan [Member] | Fixed income securities [Member] | Maximum [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Equity and debt securities, target allocation percentage 70.00%    
International [Member] | Pension Plan [Member] | Corporate debt [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 569 1,187  
International [Member] | Pension Plan [Member] | Corporate debt [Member] | Level 1 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
International [Member] | Pension Plan [Member] | Corporate debt [Member] | Level 2 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 569 1,187  
International [Member] | Pension Plan [Member] | Corporate debt [Member] | Level 3 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
International [Member] | Pension Plan [Member] | Corporate debt [Member] | Assets Measured at NAV [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [1] 0 0  
International [Member] | Pension Plan [Member] | Government and Agency Obligations [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [2] 862 2,415  
International [Member] | Pension Plan [Member] | Government and Agency Obligations [Member] | Level 1 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [2] 0 0  
International [Member] | Pension Plan [Member] | Government and Agency Obligations [Member] | Level 2 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [2] 862 2,415  
International [Member] | Pension Plan [Member] | Government and Agency Obligations [Member] | Level 3 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [2] 0 0  
International [Member] | Pension Plan [Member] | Government and Agency Obligations [Member] | Assets Measured at NAV [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [1],[2] 0 0  
International [Member] | Pension Plan [Member] | Fixed Income Commingled Funds [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 2,053 2,266  
International [Member] | Pension Plan [Member] | Fixed Income Commingled Funds [Member] | Level 1 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
International [Member] | Pension Plan [Member] | Fixed Income Commingled Funds [Member] | Level 2 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 1,045 1,138  
International [Member] | Pension Plan [Member] | Fixed Income Commingled Funds [Member] | Level 3 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
International [Member] | Pension Plan [Member] | Fixed Income Commingled Funds [Member] | Assets Measured at NAV [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [1] $ 1,008 1,128  
International [Member] | Pension Plan [Member] | Other investments [Member] | Minimum [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Equity and debt securities, target allocation percentage 15.00%    
International [Member] | Pension Plan [Member] | Other investments [Member] | Maximum [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Equity and debt securities, target allocation percentage 35.00%    
International [Member] | Pension Plan [Member] | Partnership Interest [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [3] $ 128 107  
International [Member] | Pension Plan [Member] | Partnership Interest [Member] | Level 1 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [3] 0 0  
International [Member] | Pension Plan [Member] | Partnership Interest [Member] | Level 2 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [3] 1 2  
International [Member] | Pension Plan [Member] | Partnership Interest [Member] | Level 3 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [3] 0 0  
International [Member] | Pension Plan [Member] | Partnership Interest [Member] | Assets Measured at NAV [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [1],[3] 126 106  
International [Member] | Pension Plan [Member] | Insurance Contracts [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 1,197 1,329  
International [Member] | Pension Plan [Member] | Insurance Contracts [Member] | Level 1 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
International [Member] | Pension Plan [Member] | Insurance Contracts [Member] | Level 2 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 54 56  
International [Member] | Pension Plan [Member] | Insurance Contracts [Member] | Level 3 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 1,143 1,273  
International [Member] | Pension Plan [Member] | Insurance Contracts [Member] | Assets Measured at NAV [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [1] 0 0  
International [Member] | Pension Plan [Member] | Other [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [4] 1,122 1,431  
International [Member] | Pension Plan [Member] | Other [Member] | Level 1 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [4] 0 0  
International [Member] | Pension Plan [Member] | Other [Member] | Level 2 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [4] 133 141  
International [Member] | Pension Plan [Member] | Other [Member] | Level 3 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [4] 312 404  
International [Member] | Pension Plan [Member] | Other [Member] | Assets Measured at NAV [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets [1],[4] $ 677 $ 886  
[1] Certain investments that are measured at NAV per share (or its equivalent) have not been classified in the fair value hierarchy. The NAV amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented for the total pension benefits plan assets.
[2] Government and agency obligations are inclusive of repurchase agreements
[3] Mainly includes investments in private equity, private debt, public equity limited partnerships, and, to a lesser extent, real estate and venture capital.
[4] Mostly includes investments in hedge funds and real estate.
[5] Reflects postretirement plan assets, which support a portion of our U.S. retiree medical plans.
v3.22.4
Pension and Postretirement Benefit Plans and Defined Contribution Plans - Analysis of Changes in Significant Investments Valued Using Significant Unobservable Inputs (Details) - International [Member] - Pension Plan [Member] - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward]    
Fair value, beginning $ 10,729 $ 9,811
Actual return on plan assets:    
Exchange rate changes (1,037) (229)
Fair value, ending 6,865 10,729
Level 3 [Member]    
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward]    
Fair value, beginning 1,677 1,362
Actual return on plan assets:    
Assets held, ending (177) 23
Assets sold during the period 4 0
Purchases, sales, and settlements, net (129) 52
Transfer into/(out of) Level 3 241 265
Exchange rate changes (161) (24)
Fair value, ending $ 1,455 $ 1,677
v3.22.4
Pension and Postretirement Benefit Plans and Defined Contribution Plans - Expected Future Cash Flow Information (Details)
$ in Millions
Dec. 31, 2022
USD ($)
Postretirement Benefits Plan [Member]  
Defined Benefit Plan Disclosure [Line Items]  
Expected contributions in 2023 $ (53)
Expected benefit payments:  
2023 42
2024 43
2025 44
2026 44
2027 43
2028–2032 192
U.S. [Member] | Pension Plan [Member]  
Defined Benefit Plan Disclosure [Line Items]  
Expected contributions in 2023 111
Expected benefit payments:  
2023 982
2024 947
2025 920
2026 901
2027 885
2028–2032 4,218
Expected future reimbursements 95
International [Member] | Pension Plan [Member]  
Defined Benefit Plan Disclosure [Line Items]  
Expected contributions in 2023 147
Expected benefit payments:  
2023 364
2024 365
2025 372
2026 379
2027 392
2028–2032 $ 2,069
v3.22.4
Pension and Postretirement Benefit Plans and Defined Contribution Plans - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Retirement Benefits [Abstract]      
Defined contribution plan, cost recognized $ 770 $ 732 $ 685
v3.22.4
Equity (Details)
 12 Months Ended
May 04, 2020
shares
Dec. 31, 2022
USD ($)
employeeStockOwnershipPlan
shares
Dec. 31, 2021
USD ($)
shares
Dec. 31, 2020
USD ($)
Dec. 31, 2018
USD ($)
Equity, Class of Treasury Stock [Line Items]          
Shares repurchased (in shares) | shares   39,000,000      
Shares repurchased, cost   $ 2,000,000,000      
Amount of remaining shares authorized in stock purchase plan, value   $ 3,300,000,000      
Preferred stock, shares outstanding | shares 0 0 0    
Number of employee stock ownership plans | employeeStockOwnershipPlan   1      
Common Stock [Member]          
Equity, Class of Treasury Stock [Line Items]          
Shares issued upon conversion of convertible preferred stock (in shares) | shares 1,070,369        
Common ESOP Plan [Member]          
Equity, Class of Treasury Stock [Line Items]          
ESOP compensation expense   $ 19,000,000 $ 19,000,000 $ 19,000,000  
December 2018 Stock Purchase Plan [Member]          
Equity, Class of Treasury Stock [Line Items]          
Amount of shares authorized in stock purchase plan, value         $ 10,000,000,000
v3.22.4
Share-Based Payments - Narrative (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Shares available for award 270,000,000    
Compensation cost recognized, pre-tax $ 872 $ 1,200 $ 780
Tax benefit for share-based compensation expense $ 160 227 141
GBT, Arena And Biohaven Acquisitions [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Shares available for award 27,000,000    
Discontinued Operations [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Compensation cost recognized, pre-tax $ 0 2 25
2019 Stock Plan [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of additional shares authorized 400,000,000    
Award requisite service period 36 months    
Maximum shares available per individual during the plan period 20,000,000    
2014 Stock Plan [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of additional shares authorized 0    
Restricted Stock Units (RSUs) [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Compensation cost recognized, pre-tax [1] $ 402 281 272
Restricted Stock Units (RSUs) [Member] | 2019 Stock Plan [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of shares counted toward maximum 3    
Portfolio Performance Shares [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Compensation cost recognized, pre-tax [1] $ 144 535 180
Portfolio Performance Shares [Member] | 2019 Stock Plan [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of shares counted toward maximum 3    
Performance Share Awards [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award requisite service period 3 years    
Compensation cost recognized, pre-tax [1] $ 73 76 31
Performance Share Awards [Member] | 2019 Stock Plan [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of shares counted toward maximum 3    
Breakthrough Performance Awards (BPAs) [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award requisite service period 1 year    
Breakthrough Performance Awards (BPAs) [Member] | 2019 Stock Plan [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of shares counted toward maximum 3    
Total Shareholder Return Units (TSRUs) [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Compensation cost recognized, pre-tax [1] $ 255 259 287
Total Shareholder Return Units (TSRUs) [Member] | 2019 Stock Plan [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of shares counted toward maximum 1    
Stock Options [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Compensation cost recognized, pre-tax [1] $ 4 $ 5 $ 6
Stock Options [Member] | 2019 Stock Plan [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of shares counted toward maximum 1    
[1] In 2020, TSRU includes expense for PTSRUs, which is not significant
v3.22.4
Share-Based Payments - Schedule of Share-based Compensation Awards and Valuation Details (Details)
 12 Months Ended
Dec. 31, 2022
measure
period
tradingDay
shares
Dec. 31, 2017
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Granted, shares 429,000  
Management [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Granted, shares 0  
Total Shareholder Return Units (TSRUs) [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Trading day average | tradingDay [1],[2] 20  
Total Shareholder Return Units (TSRUs) [Member] | Minimum [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Contractual term (years) [1],[2] 5 years  
Total Shareholder Return Units (TSRUs) [Member] | Maximum [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Contractual term (years) [1],[2] 7 years  
Restricted Stock Units (RSUs) [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Award vesting period 3 years  
Portfolio Performance Shares [Member] | Minimum [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Award requisite service period 3 years  
Number of shares earned as a percentage of initial award 0.00%  
Portfolio Performance Shares [Member] | Maximum [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Award requisite service period 5 years  
Number of shares earned as a percentage of initial award 200.00%  
Performance Share Awards [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Award requisite service period 3 years  
Number of measures used to determine share payout | measure 2  
Share payout measures, adjusted net income, number of periods | period 3  
Share payout measures, adjusted net income, period 1 year  
Performance Share Awards [Member] | Minimum [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Number of shares earned as a percentage of initial award 0.00%  
Performance Share Awards [Member] | Maximum [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Number of shares earned as a percentage of initial award 200.00%  
Breakthrough Performance Awards (BPAs) [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Award requisite service period 1 year  
Breakthrough Performance Awards (BPAs) [Member] | Minimum [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Number of shares earned as a percentage of initial award 0.00%  
Breakthrough Performance Awards (BPAs) [Member] | Maximum [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Number of shares earned as a percentage of initial award 600.00%  
Stock Options [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Contractual term (years) 10 years  
Performance Total Shareholder Return Unit (PTSRUs) [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Grant price (in dollars per share) | $ / shares   $ 30.31
Grant-date fair value (in dollars per share) | $ / shares   $ 5.54
Performance Total Shareholder Return Unit (PTSRUs) [Member] | Board of Directors Chairman [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Deferred compensation arrangement, shares issued   1,444,395
Performance Total Shareholder Return Unit (PTSRUs) [Member] | Group President, Chief Business Officer or Former Group President, Pfizer Innovative Health [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Deferred compensation arrangement, shares issued   361,099
[1] In 2017, Performance Total Shareholder Return Units (PTSRUs) were awarded to the Former Chairman and Chief Executive Officer (1,444,395 PTSRUs) and 361,099 PTSRUs were awarded to the Group President, Chief Business Officer (former role Group President Pfizer Innovative Health) at a grant price of $30.31 and at a GDFV of $5.54 per PTSRU. In addition to having the same characteristics and valuation methodology of TSRUs, PTSRU grants require special service and performance conditions. These awards were settled in December 2022 in accordance with the grant provisions.
[2] Retirement-eligible holders, as defined in the grant terms, can convert their TSRUs, when vested, into Profit Units (PTUs) with a conversion ratio based on a calculation used to determine the shares at TSRU settlement. The PTUs are entitled to earn Dividend Equivalent Units (DEUs), and the PTUs and DEUs will be settled in our common stock on the TSRUs’ original settlement date and will be subject to the terms and conditions of the original grant including forfeiture provisions.
v3.22.4
Share-Based Payments - Summary of Data Related to Share-based Payment Arrangement Activity (Details) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Compensation cost recognized, pre-tax $ 872 $ 1,200 $ 780
Total Shareholder Return Units (TSRUs) [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted, weighted-average grant-date fair value per share (in dollars per share) [1] $ 11.72 $ 7.26 $ 6.22
Units converted, aggregate intrinsic value $ 1,131 $ 594 $ 84
Compensation cost recognized, pre-tax [2] 255 259 287
Total compensation cost related to nonvested awards not yet recognized, pre-tax $ 179 $ 187 $ 224
Weighted-average period over which cost is expected to be recognized (years) 1 year 8 months 12 days 1 year 7 months 6 days 1 year 7 months 6 days
Restricted Stock Units (RSUs) [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted, weighted-average grant-date fair value per share (in dollars per share) $ 46.73    
Total fair value of shares vested [1] $ 345 $ 304 $ 334
Compensation cost recognized, pre-tax [2] 402 281 272
Total compensation cost related to nonvested awards not yet recognized, pre-tax $ 266 $ 271 $ 228
Weighted-average period over which cost is expected to be recognized (years) 1 year 8 months 12 days 1 year 9 months 18 days 1 year 8 months 12 days
Portfolio Performance Shares [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total fair value of shares vested [1] $ 145 $ 181 $ 119
Units converted, aggregate intrinsic value 280 228 224
Compensation cost recognized, pre-tax [2] 144 535 180
Total compensation cost related to nonvested awards not yet recognized, pre-tax $ 135 $ 175 $ 104
Weighted-average period over which cost is expected to be recognized (years) 1 year 8 months 12 days 1 year 9 months 18 days 1 year 9 months 18 days
Performance Share Awards [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total fair value of shares vested [1] $ 57 $ 33 $ 25
Compensation cost recognized, pre-tax [2] 73 76 31
Total compensation cost related to nonvested awards not yet recognized, pre-tax $ 38 $ 54 $ 32
Weighted-average period over which cost is expected to be recognized (years) 1 year 9 months 18 days 1 year 9 months 18 days 1 year 10 months 24 days
Stock Options [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted, weighted-average grant-date fair value per share (in dollars per share) [1] $ 9.44 $ 4.86 $ 3.56
Aggregate intrinsic value on exercise $ 247 $ 584 $ 293
Cash received upon exercise 260 795 425
Tax benefits realized from exercise 46 106 55
Compensation cost recognized, pre-tax [2] 4 5 6
Total compensation cost related to nonvested awards not yet recognized, pre-tax $ 3 $ 3 $ 4
Weighted-average period over which cost is expected to be recognized (years) 1 year 8 months 12 days 1 year 7 months 6 days 1 year 8 months 12 days
[1] Weighted-average GDFV per TSRUs and stock options.
[2] In 2020, TSRU includes expense for PTSRUs, which is not significant
v3.22.4
Share-Based Payments - Schedule of Valuation Assumptions (Detail)
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Total Shareholder Return Units (TSRUs) [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected dividend yield 3.42% 4.51% 4.36%
Risk-free interest rate 1.87% 0.93% 1.15%
Expected stock price volatility 29.20% 26.53% 20.99%
Contractual term/expected term 5 years 2 months 1 day 5 years 1 month 24 days 5 years 1 month 13 days
Stock Options [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected dividend yield 3.42% 4.51% 4.36%
Risk-free interest rate 1.93% 1.27% 1.25%
Expected stock price volatility 29.21% 26.54% 20.97%
Contractual term/expected term 6 years 6 months 6 years 9 months 6 years 9 months
v3.22.4
Share-Based Payments - Schedule of Share-based Payment Arrangement Activity (Detail) - $ / shares
shares in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Total Shareholder Return Units (TSRUs) [Member]      
Number of Shares      
Nonvested, beginning of period, shares 114,599    
Granted, shares 22,479    
Vested, shares (33,066)    
Forfeited, shares (2,318)    
Nonvested, end of period, shares 101,693 114,599  
Weighted Avg. GDFV per share      
Nonvested, beginning of period, weighted-average grant date fair value per share (in dollars per share) $ 6.90    
Granted, weighted-average grant-date fair value per share (in dollars per share) [1] 11.72 $ 7.26 $ 6.22
Vested, weighted-average grant-date fair value per share (in dollars per share) 8.40    
Forfeited, weighted-average grant date fair value per share (in dollars per share) 7.76    
Nonvested, end of period, weighted-average grant date fair value per share (in dollars per share) 7.58 6.90  
Grant Price      
Nonvested, beginning of period, grant price (in dollars per share) 34.12    
Granted, grant price (in dollars per share) 46.02    
Vested, grant price (in dollars per share) 38.57    
Forfeited, grant price (in dollars per share) 35.88    
Nonvested, end of period, grant price (in dollars per share) $ 35.26 $ 34.12  
Restricted Stock Units [Member]      
Number of Shares      
Nonvested, beginning of period, shares 25,540    
Granted, shares 9,617    
Vested, shares (7,258)    
Reinvested dividend equivalents, shares 876    
Forfeited, shares (948)    
Nonvested, end of period, shares 27,826 25,540  
Weighted Avg. GDFV per share      
Nonvested, beginning of period, weighted-average grant date fair value per share (in dollars per share) $ 35.52    
Granted, weighted-average grant-date fair value per share (in dollars per share) 46.73    
Vested, weighted-average grant-date fair value per share (in dollars per share) 41.10    
Reinvested dividend equivalents, weighted-average grant date fair value per share (in dollars per share) 50.30    
Forfeited, weighted-average grant date fair value per share (in dollars per share) 39.75    
Nonvested, end of period, weighted-average grant date fair value per share (in dollars per share) $ 38.26 $ 35.52  
Portfolio Performance Shares [Member]      
Number of Shares      
Nonvested, beginning of period, shares [2] 21,480    
Granted, shares [2] 7,089    
Vested, shares [2] (5,602)    
Forfeited, shares [2] (645)    
Nonvested, end of period, shares [2] 22,322 21,480  
Weighted Avg. Intrinsic Value per share      
Nonvested, beginning of period, weighted-average intrinsic value per share (in dollars per share) [2] $ 59.05    
Granted, weighted-average intrinsic value per share (in dollars per share) [2] 45.96    
Vested, weighted-average intrinsic value per share (in dollars per share) [2] 46.99    
Forfeited, weighted-average intrinsic value per share (in dollars per share) [2] 50.52    
Nonvested, end of period, weighted-average intrinsic value per share (in dollars per share) [2] $ 51.24 $ 59.05  
Vested and expected to vest, end of period, shares 34,200    
Performance Share Awards [Member]      
Number of Shares      
Nonvested, beginning of period, shares 5,154    
Granted, shares 1,506    
Vested, shares (1,209)    
Forfeited, shares (433)    
Nonvested, end of period, shares 5,018 5,154  
Weighted Avg. Intrinsic Value per share      
Nonvested, beginning of period, weighted-average intrinsic value per share (in dollars per share) $ 59.05    
Granted, weighted-average intrinsic value per share (in dollars per share) 46.38    
Vested, weighted-average intrinsic value per share (in dollars per share) 46.98    
Forfeited, weighted-average intrinsic value per share (in dollars per share) 47.22    
Nonvested, end of period, weighted-average intrinsic value per share (in dollars per share) $ 51.24 $ 59.05  
Breakthrough Performance Awards (BPAs) [Member]      
Number of Shares      
Nonvested, beginning of period, shares 859    
Granted, shares 0    
Vested, shares 0    
Forfeited, shares (859)    
Nonvested, end of period, shares 0 859  
Weighted Avg. Intrinsic Value per share      
Nonvested, beginning of period, weighted-average intrinsic value per share (in dollars per share) $ 59.05    
Granted, weighted-average intrinsic value per share (in dollars per share) 0    
Vested, weighted-average intrinsic value per share (in dollars per share) 0    
Forfeited, weighted-average intrinsic value per share (in dollars per share) 47.21    
Nonvested, end of period, weighted-average intrinsic value per share (in dollars per share) $ 0 $ 59.05  
[1] Weighted-average GDFV per TSRUs and stock options.
[2] Vested and non-vested shares outstanding, but not paid as of December 31, 2022 were 34.2 million.
v3.22.4
Share-Based Payments - Summary of TSRU and PTU Activity (Details)
$ / shares in Units, $ in Millions
 12 Months Ended
Dec. 31, 2022
USD ($)
$ / shares
shares
Total Shareholder Return Units (TSRUs) [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Units outstanding, shares 180,182,000 [1],[2]
Units vested, shares 78,488,000 [1],[2]
Units expected to vest, shares 99,060,000 [1],[2],[3]
Units outstanding, weighted average grant price (in dollars per share) | $ / shares $ 34.51 [1],[2]
Units vested, weighted average grant price (in dollars per share) | $ / shares 33.54 [1],[2]
Units expected to vest, weighted average grant price (in dollars per share) | $ / shares $ 35.14 [1],[2],[3]
Units outstanding, weighted average remaining contractual term 2 years [1],[2]
Units vested, weighted average remaining contractual term 8 months 12 days [1],[2]
Units expected to vest, weighted average remaining contractual term 3 years [1],[2],[3]
Units outstanding, aggregate intrinsic value | $ $ 3,528 [1],[2]
Units vested, aggregate intrinsic value | $ 1,637 [1],[2]
Units expected to vest, aggregate intrinsic value | $ $ 1,856 [1],[2],[3]
Units settled, shares 42,938,701
Units settled, weighted average grant price (in dollars per share) | $ / shares $ 27.32
Units exercised, shares 3,097,904
Units exercised, weighted average grant price (in dollars per share) | $ / shares $ 28.37
Profit Units [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Units converted and exercised, shares 2,621,000 [1],[2]
Units exercised and converted, weighted average remaining contractual term 7 months 6 days [1],[2]
Units exercised and converted, aggregate intrinsic value | $ $ 134 [1],[2]
Units granted upon conversion, shares 1,820,027
[1] In 2022, 3,097,904 TSRUs with a weighted-average grant price of $28.37 per unit were converted into 1,820,027 PTUs.
[2] In 2022, we settled 42,938,701 TSRUs with a weighted-average grant price of $27.32 per unit.
[3] The number of TSRUs expected to vest takes into account an estimate of expected forfeitures.
v3.22.4
Share-Based Payments - Schedule of Share-based Compensation, Stock Options, Activity (Detail)
$ / shares in Units, shares in Thousands, $ in Millions
 12 Months Ended
Dec. 31, 2022
USD ($)
$ / shares
shares
Shares (Thousands)  
Outstanding, beginning of period, shares | shares 44,874
Granted, shares | shares 429
Exercised, shares | shares (9,859)
Forfeited, shares | shares (26)
Expired, shares | shares (138)
Outstanding, end of period, shares | shares 35,280
Vested and expected to vest, end of period, shares | shares 35,209 [1]
Exercisable, end of period, shares | shares 32,460
Weighted-Average Exercise Price Per Share  
Outstanding, beginning of period, weighted-average exercise price per share (in dollars per share) | $ / shares $ 30.20
Granted, weighted-average exercise price per share (in dollars per share) | $ / shares 45.96
Exercised, weighted-average exercise price per share (in dollars per share) | $ / shares 26.44
Forfeited, weighted-average exercise price per share (in dollars per share) | $ / shares 34.52
Expired, weighted-average exercise price per share (in dollars per share) | $ / shares 20.80
Outstanding, end of period, weighted-average exercise price per share (in dollars per share) | $ / shares 31.47
Vested and expected to vest, end of period, weighted-average exercise price per share (in dollars per share) | $ / shares 31.46 [1]
Exercisable, end of period, weighted-average exercise price per share (in dollars per share) | $ / shares $ 31.18
Outstanding, end of period, weighted-average remaining contractual term 2 years 1 month 6 days
Vested and expected to vest, end of period, weighted-average remaining contractual term 2 years 1 month 6 days [1]
Exercisable, end of period, weighted-average remaining contractual term 1 year 7 months 6 days
Outstanding, end of period, aggregate intrinsic value | $ $ 697 [2]
Vested and expected to vest, end of period, aggregate intrinsic value | $ 696 [1],[2]
Exercisable, end of period, aggregate intrinsic value | $ $ 651 [2]
[1] The number of options expected to vest takes into account an estimate of expected forfeitures.
[2] Market price of our underlying common stock less exercise price.
v3.22.4
Earnings Per Common Share Attributable to Pfizer Inc. Common Shareholders (Details) - USD ($)
shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
EPS Numerator-Basic      
Income from continuing operations attributable to Pfizer Inc. common shareholders $ 31,366 $ 22,414 $ 6,630
Discontinued operations––net of tax 6 (434) 2,529
Net income attributable to Pfizer Inc. common shareholders 31,372 21,979 9,159
EPS Numerator––Diluted      
Income from continuing operations attributable to Pfizer Inc. common shareholders and assumed conversions 31,366 22,414 6,630
Discontinued operations––net of tax, attributable to Pfizer Inc. common shareholders and assumed conversions 6 (434) 2,529
Net income attributable to Pfizer Inc. common shareholders and assumed conversions $ 31,372 $ 21,979 $ 9,159
EPS Denominator      
Weighted-average number of common shares outstanding––Basic 5,608 5,601 5,555
Common-share equivalents: stock options, and stock issuable under employee compensation plans (in shares) 125 107 77
Weighted-average number of common shares outstanding––Diluted 5,733 5,708 5,632
Anti-dilutive common stock equivalents (in shares) [1] 1 2 4
[1] These common stock equivalents were outstanding for the periods presented, but were not included in the computation of diluted EPS for those periods because their inclusion would have had an anti-dilutive effect.
v3.22.4
Leases - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Lessee, Lease, Description [Line Items]      
Variable lease cost $ 536 $ 381 $ 380
Minimum [Member]      
Lessee, Lease, Description [Line Items]      
Operating lease term 1 year    
Operating lease term, option to extend 5 years    
Maximum [Member]      
Lessee, Lease, Description [Line Items]      
Operating lease term 30 years    
Operating lease term, option to extend 10 years    
v3.22.4
Leases - Schedule of Lease Assets and Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Leases [Abstract]    
ROU assets $ 3,002 $ 2,839
Lease liabilities (short-term) 620 449
Lease liabilities (long-term) $ 2,597 $ 2,510
ROU assets, statement of financial position Other Assets, Noncurrent Other Assets, Noncurrent
Lease liabilities (short-term), statement of financial position Other current liabilities Other current liabilities
Lease liabilities (long-term), statement of financial position Other noncurrent liabilities Other noncurrent liabilities
v3.22.4
Leases - Schedule of Lease Costs and Other Supplemental Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Leases [Abstract]      
Operating lease cost $ 714 $ 548 $ 432
Variable lease cost 536 381 380
Sublease income (32) (41) (40)
Total lease cost $ 1,218 $ 888 772
Weighted-Average Remaining Contractual Lease Term (Years) 11 years 12 years  
Weighted-Average Discount Rate 3.00% 2.80%  
Operating cash flows from operating leases $ 617 $ 387 333
(Gains)/losses on sale and leaseback transactions, net $ 11 $ 1 $ (3)
v3.22.4
Leases - Schedule of Future Minimum Rental Payments for Operating Leases (Detail) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Leases [Abstract]    
Next one year [1] $ 662  
1-2 years 489  
2-3 years 356  
3-4 years 300  
4-5 years 246  
Thereafter 1,791  
Total undiscounted lease payments 3,844  
Less: Imputed interest 627  
Present value of minimum lease payments 3,217  
Less: Current portion 620 $ 449
Noncurrent portion $ 2,597 $ 2,510
[1] Reflects lease payments due within 12 months subsequent to the balance sheet date.
v3.22.4
Contingencies and Certain Commitments (Patent Litigation) (Details)
$ in Millions
 1 Months Ended
Sep. 30, 2022
patent
Aug. 31, 2022
patent
Jul. 31, 2022
patent
Dec. 31, 2022
USD ($)
Gain Contingencies [Line Items]        
Threshold for disclosure of proceedings under environmental laws | $       $ 1
Mektovi [Member] | Pfizer and Versus Several Generic Manufacturers [Member] | Patent Infringement [Member] | Pending Litigation [Member]        
Gain Contingencies [Line Items]        
Number of patents allegedly infringed upon   6    
Mektovi [Member] | Pfizer and Versus Several Generic Manufacturers [Member] | Patent Infringement [Member] | Pending Litigation [Member] | Expiring 2030 [Member]        
Gain Contingencies [Line Items]        
Number of patents allegedly infringed upon   2    
Mektovi [Member] | Pfizer and Versus Several Generic Manufacturers [Member] | Patent Infringement [Member] | Pending Litigation [Member] | Expiring 2033 [Member]        
Gain Contingencies [Line Items]        
Number of patents allegedly infringed upon   2    
Comirnaty [Member] | ModernaTX U.S. Patent Infringement Case [Member]        
Gain Contingencies [Line Items]        
Number of patents allegedly infringed   3    
Comirnaty [Member] | ModernaTX European Patent Infringement Case [Member]        
Gain Contingencies [Line Items]        
Number of patents allegedly infringed 2      
Comirnaty [Member] | Pfizer, BioNTech and BioNTech Manufacturing GmbH Versus CureVac, Judgment Of Non-Infringement [Member]        
Gain Contingencies [Line Items]        
Loss contingency, number of patents found not infringed     3  
v3.22.4
Contingencies and Certain Commitments (Product Litigation, Commercial and Other Matters, Resolved Matters) (Details)
 12 Months Ended
Dec. 31, 2018
manufacturer
Pfizer And Hospira And Various Other Manufacturers Versus Mississippi Attorney General [Member] | Docetaxel [Member] | Pending Litigation [Member]  
Loss Contingencies [Line Items]  
Number of defendants other than main defendant 8
v3.22.4
Contingencies and Certain Commitments (Certain Commitments and Contingent Consideration for Acquisitions) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]    
Long-term purchase commitment, amount $ 4,400  
Fair value of contingent consideration 645 $ 697
Contingent consideration liability, current 42 135
Contingent consideration liability, noncurrent $ 603 $ 563
v3.22.4
Segment, Geographic and Other Revenue Information - Narrative (Detail)
$ in Millions
 12 Months Ended
Dec. 31, 2022
USD ($)
operatingSegment
country
Dec. 31, 2021
USD ($)
country
Dec. 31, 2020
country
Segment Reporting Information [Line Items]      
Number of operating segments | operatingSegment 2    
Total assets $ 197,205 $ 181,476  
Remaining performance obligation 15,000    
Deferred revenues, current 2,520 3,067  
Government and Government Sponsored [Member] | Comirnaty [Member]      
Segment Reporting Information [Line Items]      
Deferred revenues 2,500 3,300  
Deferred revenues, current 2,400 3,000  
Deferred revenues, noncurrent 77 $ 249  
Deferred revenue, revenue recognized $ 3,100    
Geographic Concentration Risk [Member] | Revenue [Member] | Outside United States [Member]      
Segment Reporting Information [Line Items]      
Number of countries with revenue exceeding $500 million | country 24 21 8
Geographic Concentration Risk [Member] | Revenue [Member] | U.S. [Member]      
Segment Reporting Information [Line Items]      
Concentration risk, percentage 10.00% 10.00% 10.00%
Geographic Concentration Risk [Member] | Revenue [Member] | Japan [Member]      
Segment Reporting Information [Line Items]      
Concentration risk, percentage 8.00% 9.00% 6.00%
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Three Largest U.S. Wholesaler Customers [Member]      
Segment Reporting Information [Line Items]      
Concentration risk, percentage 32.00% 24.00% 30.00%
Customer Concentration Risk [Member] | Revenue [Member] | Government and Government Sponsored [Member]      
Segment Reporting Information [Line Items]      
Concentration risk, percentage 23.00% 13.00%  
Credit Concentration Risk [Member] | Accounts Receivable [Member] | Government and Government Sponsored [Member]      
Segment Reporting Information [Line Items]      
Concentration risk, percentage 4.00% 12.00%  
v3.22.4
Segment, Geographic and Other Revenue Information - Schedule of Segment Reporting Information by Segment (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Segment Reporting Information [Line Items]      
Revenues $ 100,330 $ 81,288 $ 41,651
Earnings [1],[2],[3] 34,729 24,311 7,036
Depreciation and Amortization [4] 5,064 5,191 4,681
Restructuring charges/(credits) and implementation costs and additional depreciation, asset restructuring 1,400 1,300 791
Net gains/(losses) recognized during the period on equity securities [5],[6] (1,273) 1,344 540
Net periodic benefit, actuarial valuation and other pension and postretirement plan, gain (loss)   $ 1,600 (1,100)
Intangible asset impairments (421)   (1,700)
Net periodic benefit, actuarial valuation and other pension and postretirement plan gains, statement of income or comprehensive income   Other income/(deductions)—net  
Selling, informational and administrative expenses [Member]      
Segment Reporting Information [Line Items]      
Restructuring charges/(credits) and implementation costs and additional depreciation, asset restructuring 562 $ 450 197
ViiV [Member]      
Segment Reporting Information [Line Items]      
Dividend income 314 166 278
Other Business Activities [Member]      
Segment Reporting Information [Line Items]      
Revenues [7] 1,342 1,731 926
Earnings [1],[7] (14,370) (13,455) (12,583)
Depreciation and Amortization [4],[7] 626 590 592
Inventory write-off 1,300    
Other Business Activities [Member] | Paxlovid [Member]      
Segment Reporting Information [Line Items]      
Cost, excess raw materials 430    
Other Business Activities [Member] | Reclassification Adjustment [Member]      
Segment Reporting Information [Line Items]      
Operating costs   (231) (222)
Reconciling Items [Member] | Amortization of Intangible Assets [Member]      
Segment Reporting Information [Line Items]      
Earnings [1] (3,609) (3,746) (3,395)
Depreciation and Amortization [4] 3,609 3,746 3,395
Reconciling Items [Member] | Acquisition-Related Items [Member]      
Segment Reporting Information [Line Items]      
Earnings [1] (832) (139) (98)
Depreciation and Amortization [4] (20) (21) (17)
Reconciling Items [Member] | Certain Significant Items [Member]      
Segment Reporting Information [Line Items]      
Earnings [1],[8] (3,608) 1,003 (4,079)
Depreciation and Amortization [4],[8] 36 87 18
Biopharma [Member]      
Segment Reporting Information [Line Items]      
Revenues [9] 98,988 79,557 40,724
Biopharma [Member] | Operating Segments [Member]      
Segment Reporting Information [Line Items]      
Revenues 98,988 79,557 40,724
Earnings [1] 57,148 40,647 27,191
Depreciation and Amortization [4] $ 813 789 693
Biopharma [Member] | Operating Segments [Member] | Reclassification Adjustment [Member]      
Segment Reporting Information [Line Items]      
Operating costs   $ 231 $ 222
[1] Income from continuing operations before provision/(benefit) for taxes on income. Biopharma’s earnings include dividend income from our investment in ViiV of $314 million in 2022, $166 million in 2021 and $278 million in 2020. In connection with the organizational changes effective in the third quarter of 2022, certain functions transferred between Biopharma and corporate enabling functions and certain activities were realigned within the GPD organization. We have reclassified $231 million of costs in 2021 and $222 million of costs in 2020 from corporate enabling functions, which are included in Other business activities, to Biopharma to conform to the current period presentation. Amortization of intangible assets is not allocated to our operating segments for all periods presented.
[2] 2021 v. 2020––The domestic income in 2021 versus domestic loss in 2020 was mainly related to Comirnaty income, lower asset impairment charges, net periodic benefit credits in 2021 versus net periodic benefit costs in 2020 and higher net gains from equity securities, partially offset by higher R&D expenses. The increase in the international income was primarily related to Comirnaty income, net periodic benefit credits in 2021 versus net periodic benefit costs in 2020 and lower asset impairment charges.
[3] 2022 v. 2021––The decrease in domestic income is primarily related to net losses on equity securities in 2022 versus net gains on equity securities in 2021, lower net periodic benefit credits and higher restructuring charges and certain acquisition-related costs, partially offset by Paxlovid income and lower acquired IPR&D expenses. The increase in the international income is primarily related to Paxlovid and Comirnaty income partially offset by lower net periodic benefit credits.
[4] Certain production facilities are shared. Depreciation is allocated based on estimates of physical production.
[5] Reported in Other (income)/deductions––net. See Note 4.
[6] (b)2022 losses include, among other things, unrealized losses of $986 million related to investments in BioNTech, Allogene Therapeutics, Inc. and Arvinas. 2021 gains included, among other things, unrealized gains of $1.6 billion related to investments in BioNTech and Cerevel Therapeutics Holdings, Inc. 2020 gains included, among other things, unrealized gains of $405 million related to investments in BioNTech and SpringWorks Therapeutics, Inc.
[7] Other business activities include revenues and costs associated with PC1 and costs that we do not allocate to our operating segments, per above, including acquired IPR&D expenses in the periods presented (see Notes 2A, 2D and 2E). In 2022, earnings include (i) write-offs of $1.3 billion to Cost of sales of inventory related to COVID-19 products that have exceeded or are expected to exceed their approved shelf-lives prior to being used and (ii) charges to Cost of sales of approximately $430 million related to excess raw materials for Paxlovid.
[8] Certain significant items are substantive and/or unusual, and in some cases recurring, items (as noted above). Earnings in 2022 includes, among other items: (i) restructuring charges/(credits) and implementation costs and additional depreciation—asset restructuring of $1.4 billion ($562 million recorded in Selling, informational and administrative expenses and the remaining amount primarily recorded in Restructuring charges and certain acquisition-related costs) and (ii) net losses on equity securities of $1.3 billion recorded in Other (income)/deductions––net. Earnings in 2021 included, among other items: (i) actuarial valuation and other pension and postretirement plan gains of $1.6 billion recorded in Other (income)/deductions––net and (ii) net gains on equity securities of $1.3 billion recorded in Other (income)/deductions––net, partially offset by (iii) restructuring charges/(credits) and implementation costs and additional depreciation—asset restructuring of $1.3 billion ($450 million recorded in Selling, informational and administrative expenses and the remaining amount primarily recorded in Restructuring charges and certain acquisition-related costs). Earnings in 2020 included, among other items: (i) charges of $1.7 billion related to certain asset impairments recorded in Other (income)/deductions––net, (ii) actuarial valuation and other pension and postretirement plan losses of $1.1 billion recorded in Other (income)/deductions––net and (iii) restructuring charges/(credits) and implementation costs and additional depreciation—asset restructuring of $791 million ($197 million recorded in Selling, informational and administrative expenses and the remaining amount primarily recorded in Restructuring charges and certain acquisition-related costs). For additional information, see Notes 3 and 4
[9] See Note 1A for information about our recent organizational changes. PC1 includes revenues from our contract manufacturing, including certain Comirnaty-related manufacturing activities performed on behalf of BioNTech ($188 million for 2022, $320 million for 2021, and $0 million for 2020), and revenues from our active pharmaceutical ingredient sales operation, as well as revenues related to our manufacturing and supply agreements with former legacy Pfizer businesses/partnerships, including but not limited to, transitional manufacturing and supply agreements with Viatris following the spin-off of the Upjohn Business.
v3.22.4
Segment, Geographic and Other Revenue Information - Revenues By Geographic Area (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenues $ 100,330 $ 81,288 $ 41,651
United States [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenues 42,473 29,746 21,455
Developed Europe [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenues 21,982 18,336 7,788
Developed Rest of World [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenues 15,778 12,506 4,036
Emerging Markets [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenues $ 20,097 $ 20,701 $ 8,372
v3.22.4
Segment, Geographic and Other Revenue Information - Schedules of Concentration of Risk (Details) - Revenue [Member] - Customer Concentration Risk [Member]
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
McKesson, Inc. [Member]      
Concentration Risk [Line Items]      
Concentration risk, percentage 8.00% 9.00% 16.00%
AmerisourceBergen Corporation [Member]      
Concentration Risk [Line Items]      
Concentration risk, percentage 5.00% 7.00% 14.00%
Cardinal Health, Inc. [Member]      
Concentration Risk [Line Items]      
Concentration risk, percentage 4.00% 5.00% 10.00%
v3.22.4
Segment, Geographic and Other Revenue Information - Revenues By Products (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Revenue from External Customer [Line Items]      
Revenues $ 100,330 $ 81,288 $ 41,651
Biopharma [Member]      
Revenue from External Customer [Line Items]      
Revenues [1] 98,988 79,557 40,724
PC1 [Member]      
Revenue from External Customer [Line Items]      
Revenues [1] 1,342 1,731 926
Total Alliance revenues [Member]      
Revenue from External Customer [Line Items]      
Revenues—Alliance revenues 8,537 7,652 5,418
Primary Care [Member] | Biopharma [Member]      
Revenue from External Customer [Line Items]      
Revenues 73,023 52,029 15,577
Primary Care [Member] | Comirnaty [Member] | Biopharma [Member]      
Revenue from External Customer [Line Items]      
Revenues [2] 37,806 36,781 154
Primary Care [Member] | Paxlovid [Member] | Biopharma [Member]      
Revenue from External Customer [Line Items]      
Revenues 18,933 76 0
Primary Care [Member] | Eliquis [Member] | Biopharma [Member]      
Revenue from External Customer [Line Items]      
Revenues 6,480 5,970 4,949
Primary Care [Member] | Prevnar Family [Member] | Biopharma [Member]      
Revenue from External Customer [Line Items]      
Revenues 6,337 5,272 5,850
Primary Care [Member] | Premarin family [Member] | Biopharma [Member]      
Revenue from External Customer [Line Items]      
Revenues 455 563 680
Primary Care [Member] | BMP2 [Member] | Biopharma [Member]      
Revenue from External Customer [Line Items]      
Revenues 277 266 274
Primary Care [Member] | Nimenrix [Member] | Biopharma [Member]      
Revenue from External Customer [Line Items]      
Revenues 268 193 221
Primary Care [Member] | Nurtec ODT/Vydura [Member] | Biopharma [Member]      
Revenue from External Customer [Line Items]      
Revenues 213 0 0
Primary Care [Member] | FSME/IMMUN-TicoVac [Member] | Biopharma [Member]      
Revenue from External Customer [Line Items]      
Revenues 200 185 196
Primary Care [Member] | Toviaz [Member] | Biopharma [Member]      
Revenue from External Customer [Line Items]      
Revenues 146 238 252
Primary Care [Member] | Trumenba [Member] | Biopharma [Member]      
Revenue from External Customer [Line Items]      
Revenues 123 118 112
Primary Care [Member] | Chantix / Champix [Member] | Biopharma [Member]      
Revenue from External Customer [Line Items]      
Revenues 8 398 919
Primary Care [Member] | All other Primary Care [Member] | Biopharma [Member]      
Revenue from External Customer [Line Items]      
Revenues 1,778 1,967 1,972
Specialty Care [Member] | Biopharma [Member]      
Revenue from External Customer [Line Items]      
Revenues 13,833 15,194 14,280
Specialty Care [Member] | Vyndaqel family [Member] | Biopharma [Member]      
Revenue from External Customer [Line Items]      
Revenues 2,447 2,015 1,288
Specialty Care [Member] | Xeljanz [Member] | Biopharma [Member]      
Revenue from External Customer [Line Items]      
Revenues 1,796 2,455 2,437
Specialty Care [Member] | Enbrel (Outside the U.S. and Canada) [Member] | Biopharma [Member]      
Revenue from External Customer [Line Items]      
Revenues 1,003 1,185 1,350
Specialty Care [Member] | Sulperazon [Member] | Biopharma [Member]      
Revenue from External Customer [Line Items]      
Revenues 786 683 618
Specialty Care [Member] | Inflectra/Remsima [Member] | Biopharma [Member]      
Revenue from External Customer [Line Items]      
Revenues 532 657 659
Specialty Care [Member] | Ig Portfolio Products [Member] | Biopharma [Member]      
Revenue from External Customer [Line Items]      
Revenues [3] 491 430 376
Specialty Care [Member] | BeneFIX [Member] | Biopharma [Member]      
Revenue from External Customer [Line Items]      
Revenues 425 438 454
Specialty Care [Member] | Zavicefta [Member] | Biopharma [Member]      
Revenue from External Customer [Line Items]      
Revenues 412 413 212
Specialty Care [Member] | Genotropin [Member] | Biopharma [Member]      
Revenue from External Customer [Line Items]      
Revenues 360 389 427
Specialty Care [Member] | Zithromax [Member] | Biopharma [Member]      
Revenue from External Customer [Line Items]      
Revenues 331 278 276
Specialty Care [Member] | Medrol [Member] | Biopharma [Member]      
Revenue from External Customer [Line Items]      
Revenues 328 432 402
Specialty Care [Member] | Fragmin [Member] | Biopharma [Member]      
Revenue from External Customer [Line Items]      
Revenues 269 305 252
Specialty Care [Member] | Somavert [Member] | Biopharma [Member]      
Revenue from External Customer [Line Items]      
Revenues 268 277 277
Specialty Care [Member] | ReFacto AF/Xyntha [Member] | Biopharma [Member]      
Revenue from External Customer [Line Items]      
Revenues 239 304 370
Specialty Care [Member] | Vfend [Member] | Biopharma [Member]      
Revenue from External Customer [Line Items]      
Revenues 225 267 270
Specialty Care [Member] | Oxbryta [Member] | Biopharma [Member]      
Revenue from External Customer [Line Items]      
Revenues 73 0 0
Specialty Care [Member] | All other Anti-infectives [Member] | Biopharma [Member]      
Revenue from External Customer [Line Items]      
Revenues 1,471 1,835 1,679
Specialty Care [Member] | All other Specialty Care [Member] | Biopharma [Member]      
Revenue from External Customer [Line Items]      
Revenues 2,377 2,830 2,934
Oncology [Member] | Biopharma [Member]      
Revenue from External Customer [Line Items]      
Revenues 12,132 12,333 10,867
Oncology [Member] | Ibrance [Member] | Biopharma [Member]      
Revenue from External Customer [Line Items]      
Revenues 5,120 5,437 5,392
Oncology [Member] | Xtandi alliance revenues [Member] | Biopharma [Member]      
Revenue from External Customer [Line Items]      
Revenues 1,198 1,185 1,024
Oncology [Member] | Inlyta [Member] | Biopharma [Member]      
Revenue from External Customer [Line Items]      
Revenues 1,003 1,002 787
Oncology [Member] | Bosulif [Member] | Biopharma [Member]      
Revenue from External Customer [Line Items]      
Revenues 575 540 450
Oncology [Member] | Zirabev [Member] | Biopharma [Member]      
Revenue from External Customer [Line Items]      
Revenues 562 444 143
Oncology [Member] | Xalkori [Member] | Biopharma [Member]      
Revenue from External Customer [Line Items]      
Revenues 465 493 544
Oncology [Member] | Ruxience [Member] | Biopharma [Member]      
Revenue from External Customer [Line Items]      
Revenues 458 491 170
Oncology [Member] | Retacrit [Member] | Biopharma [Member]      
Revenue from External Customer [Line Items]      
Revenues 394 444 386
Oncology [Member] | Sutent [Member] | Biopharma [Member]      
Revenue from External Customer [Line Items]      
Revenues 347 673 819
Oncology [Member] | Lorbrena [Member] | Biopharma [Member]      
Revenue from External Customer [Line Items]      
Revenues 343 266 204
Oncology [Member] | Bavencio Alliance Revenues [Member] | Biopharma [Member]      
Revenue from External Customer [Line Items]      
Revenues 271 178 80
Oncology [Member] | Aromasin [Member] | Biopharma [Member]      
Revenue from External Customer [Line Items]      
Revenues 248 211 148
Oncology [Member] | Besponsa [Member] | Biopharma [Member]      
Revenue from External Customer [Line Items]      
Revenues 219 192 182
Oncology [Member] | Trazimera [Member] | Biopharma [Member]      
Revenue from External Customer [Line Items]      
Revenues 203 197 98
Oncology [Member] | Braftovi [Member] | Biopharma [Member]      
Revenue from External Customer [Line Items]      
Revenues [4] 194 187 160
Oncology [Member] | Mektovi [Member] | Biopharma [Member]      
Revenue from External Customer [Line Items]      
Revenues 176 155 142
Oncology [Member] | All other Oncology [Member] | Biopharma [Member]      
Revenue from External Customer [Line Items]      
Revenues $ 357 $ 238 $ 137
[1] See Note 1A for information about our recent organizational changes. PC1 includes revenues from our contract manufacturing, including certain Comirnaty-related manufacturing activities performed on behalf of BioNTech ($188 million for 2022, $320 million for 2021, and $0 million for 2020), and revenues from our active pharmaceutical ingredient sales operation, as well as revenues related to our manufacturing and supply agreements with former legacy Pfizer businesses/partnerships, including but not limited to, transitional manufacturing and supply agreements with Viatris following the spin-off of the Upjohn Business.
[2] Excludes revenues for certain Comirnaty-related manufacturing activities performed on behalf of BioNTech, which are included in the PC1 contract development and manufacturing organization.
[3] Immunoglobulin (Ig) portfolio include the revenues from Panzyga, Octagam and Cutaquig.
[4] Erbitux® is a registered trademark of ImClone LLC.
v3.22.4
Segment, Geographic and Other Revenue Information - Revenues By Products - Footnotes (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Revenue from External Customer [Line Items]      
Revenues $ 100,330 $ 81,288 $ 41,651
PC1 [Member]      
Revenue from External Customer [Line Items]      
Revenues [1] 1,342 1,731 926
BioNTech [Member] | PC1 [Member]      
Revenue from External Customer [Line Items]      
Revenues $ 188 $ 320 $ 0
[1] See Note 1A for information about our recent organizational changes. PC1 includes revenues from our contract manufacturing, including certain Comirnaty-related manufacturing activities performed on behalf of BioNTech ($188 million for 2022, $320 million for 2021, and $0 million for 2020), and revenues from our active pharmaceutical ingredient sales operation, as well as revenues related to our manufacturing and supply agreements with former legacy Pfizer businesses/partnerships, including but not limited to, transitional manufacturing and supply agreements with Viatris following the spin-off of the Upjohn Business.