ACQUISITIONS, DIVESTITURES, LICENSING AND OTHER ARRANGEMENTS (Tables)

9 Months Ended

Sep. 30, 2023

Acquisitions, Divestitures and Other Arrangements [Abstract]

Divestitures

The following table summarizes the financial impact of divestitures including royalties, which are included in Other (income)/expense, net. Revenue and pretax earnings related to all divestitures were not material in all periods presented (excluding divestiture gains or losses).

	Three Months Ended September 30,
	Net Proceeds				Divestiture (Gains)/Losses				Royalty Income
Dollars in millions	2023		2022		2023		2022		2023		2022
Diabetes business - royalties	$	220	$	205	$	—	$	—	$	(217)	$	(205)
Mature products and other	3		1		—		—		—		—
Total	$	223	$	206	—		$	—	$	(217)	(205)
	Nine Months Ended September 30,
	Net Proceeds				Divestiture (Gains)/Losses				Royalty Income
Dollars in Millions	2023		2022		2023		2022		2023		2022
Diabetes business - royalties	$	621	$	562	$	—	$	—	$	(623)	$	(595)
Mature products and other (a)	10		229		—		(211)		—		(2)
Total	$	631	$	791	$	—	$	(211)	$	(623)	$	(597)

(a)    Includes cash proceeds of $221 million and a divestiture gain of $211 million related to the sale of several mature products to Cheplapharm in the first quarter of 2022.

Licensing and Other Arrangements

The following table summarizes the financial impact of Keytruda* royalties, Tecentriq* royalties, upfront licensing fees and milestones for products that have not obtained commercial approval, which are included in Other (income)/expense, net.

	Three Months Ended September 30,				Nine Months Ended September 30,
Dollars in millions	2023		2022		2023		2022
Keytruda* royalties	$	(315)	$	(268)	$	(878)	$	(732)
Tecentriq* royalties	(24)		(24)		(78)		(68)
Contingent milestone income	—		—		(36)		(46)
Amortization of deferred income	(12)		(18)		(39)		(41)
Biohaven sublicense income	—		(55)		—		(55)
Other royalties and licensing income	(14)		(9)		(37)		(25)
Total	$	(365)	$	(374)	$	(1,068)	$	(967)