XML 38 R27.htm IDEA: XBRL DOCUMENT

Description of the Company and Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 29, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Trade Receivable and Allowance for Credit Losses

A summary of the change in the allowance for credit losses during the fiscal nine months ended September 29, 2024 and October 1, 2023 is presented below:


	Fiscal Nine Months Ended
(Dollars in Millions)	September 29, 2024		October 1, 2023
Allowance for credit losses, beginning of period	$	(25)	$	(35)
Provision	(3)		(8)
Utilization	2		15
Currency translation adjustment	—		1
Allowance for credit losses, end of period	$	(26)	$	(27)

Assets And Liabilities, Lessee, Operating

Right of Use (“ROU”) assets and lease liabilities associated with the Company’s operating leases are included on the Condensed Consolidated Balance Sheets as of September 29, 2024 and December 31, 2023 as follows:


	Operating Leases
(Dollars in Millions)	September 29, 2024(1)		December 31, 2023(2)
ROU assets included in:
Other assets	$	122	$	139
Total ROU assets	122		139
Lease liabilities included in:
Accrued liabilities	40		44
Other liabilities	86		97
Total lease liabilities	$	126	$	141

(1) Includes leases with J&J of $40 million of ROU assets, $12 million of current lease liabilities, and $28 million of non-current lease liabilities.

(2) Includes leases with J&J of $52 million of ROU assets, $13 million of current lease liabilities, and $39 million of non-current lease liabilities.

Assets And Liabilities, Lessee, Finance

ROU assets and lease liabilities associated with the Corporate Office Lease and the State-of-the-Art Lab Facility Lease are included on the Condensed Consolidated Balance Sheet as of September 29, 2024 as follows:


(Dollars in Millions)	September 29, 2024
ROU assets included in:
Property, plant, and equipment, net	$	106
Lease liabilities included in:
Long-term debt	$	112

Lease, Cost

Other information related to the Corporate Office Lease and State-of-the-Art Lab Facility Lease for the fiscal nine months ended September 29, 2024 were as follows:

Fiscal Nine Months Ended

(Dollars in Millions)

September 29, 2024

ROU assets obtained in exchange for the new finance lease liabilities

109

Details of Impairment of Long-Lived Assets Held and Used by Asset

Impairment charges for the fiscal nine months ended September 29, 2024 consisted of:


	Fiscal Nine Months Ended
(Dollars in Millions)		September 29, 2024
Dr.Ci:Labo® asset impairment(1)		$	488
Skillman fixed asset impairment(2)		68
Other asset impairment(3)		22
Impairment charges		$	578

(1) Represents the impairment charge recognized during the fiscal three months ended June 30, 2024 in relation to Dr.Ci:Labo® long-lived assets. See “—Dr.Ci:Labo® Asset Impairment” below and Note 3, “Intangible Assets and Goodwill,” for more information.

(2) Represents the impairment charge recorded during the fiscal three months ended March 31, 2024 on the held for sale asset associated with the Company’s interim corporate headquarters in Skillman, New Jersey. See “—Assets Held for Sale” below.

(3) Represents the impairment charge recognized during the fiscal three months ended June 30, 2024 related to certain software development assets.

Schedule of Variable Interest Entities

All Deferred Legal Entities are exposed to similar operational risks and are therefore monitored and evaluated on a similar basis by management. Accordingly, the financial information for Deferred Legal Entities has been aggregated and the following table summarizes the consolidated assets and liabilities of these entities, on the Condensed Consolidated Balance Sheets. The amounts represented in this table are only those assets of the VIEs that can be used to settle only the VIE’s obligations and the VIE’s creditors (or beneficial interest holders) have no recourse against the general credit of the primary beneficiary.


(Dollars in Millions)	September 29, 2024
Assets
Current assets
Cash and cash equivalents	$	107
Trade receivables, less allowances for credit losses	60
Inventories	25
Prepaid expenses and other receivables	3

Total current assets	195
Property, plant, and equipment, net	2
Deferred taxes on income	2
Other assets	1
Total assets	$	200
Liabilities
Current liabilities
Accounts payable	$	1
Accrued liabilities	11
Accrued rebates, returns, and promotions	15

Total current liabilities	27
Total liabilities	$	27

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details