XML 35 R13.htm IDEA: XBRL DOCUMENT v3.20.1
Other (Income)/Deductions - Net
 3 Months Ended
Mar. 29, 2020
Other Income and Expenses [Abstract]  
Other (Income)/Deductions - Net Other (Income)/Deductions—Net
The following table provides components of Other (income)/deductions––net:
 
 
Three Months Ended
(MILLIONS OF DOLLARS)
 
March 29,
2020


March 31,
2019

Interest income(a)
 
$
(34
)
 
$
(66
)
Interest expense(a)
 
390

 
361

Net interest expense
 
356

 
295

Royalty-related income
 
(119
)
 
(89
)
Net (gains)/losses on asset disposals
 
1

 
(1
)
Net (gains)/losses recognized during the period on equity securities(b)
 
255


(111
)
Income from collaborations, out-licensing arrangements and sales of compound/product rights(c)
 
(115
)
 
(82
)
Net periodic benefit credits other than service costs(d)
 
(67
)
 
(40
)
Certain legal matters, net
 
10

 
4

Certain asset impairments(e)
 
—

 
150

Business and legal entity alignment costs(f)
 
—

 
119

Net losses on early retirement of debt
 
—

 
138

GSK Consumer Healthcare JV equity method (income)/loss(g)
 
33

 
—

Other, net(h)
 
(132
)

(291
)
Other (income)/deductions––net
 
$
221

 
$
92


(a) 
Interest income decreased in the first quarter of 2020, primarily driven by a lower investment balance and lower short-term interest rates. Interest expense increased in the first quarter of 2020, mainly as a result of an increased commercial paper balance due to the acquisition of Array.
(b) 
The losses in the first quarter of 2020, include, among other things, unrealized losses of $134 million related to our investment in Allogene. The gains in the first quarter of 2019 included, among other things, unrealized gains of $43 million related to our investment in Allogene. For additional information on investments, see Note 7B.
(c) 
Includes income from upfront and milestone payments from our collaboration partners and income from out-licensing arrangements and sales of compound/product rights. In the first quarter of 2020, mainly includes, among other things, an upfront payment to us of $75 million from our sale of our CK1 assets to Biogen, Inc. In the first quarter of 2019, primarily included $60 million in milestone income from Mylan Pharmaceuticals Inc. related to the FDA’s approval and launch of Wixela Inhub®, a generic of Advair Diskus®.
(d) 
For additional information, see Note 10.
(e) 
In the first quarter of 2019, primarily included intangible asset impairment charges of $130 million composed of: (i) $90 million related to WRDM IPR&D, for a pre-clinical stage asset from our acquisition of Bamboo for gene therapies for the potential treatment of patients with certain rare diseases, which was the result of a determination to not use certain Bamboo IPR&D acquired in future rare disease development and (ii) $40 million related to a Biopharma developed technology right, acquired in connection with our acquisition of King, for government defense products and reflects, among other things, updated commercial forecasts including manufacturing cost assumptions. In addition, the first quarter of 2019 included other asset impairments of $20 million.
(f) 
In the first quarter of 2019, represents incremental costs associated with the design, planning and implementation of our new organizational structure, effective in the beginning of 2019, and primarily includes consulting, legal, tax and advisory services.
(g) 
See Note 2B for additional information.
(h) 
The first quarter of 2020 includes, among other things, dividend income of $77 million from our investment in ViiV. The first quarter of 2019 included, among other things, credits of $72 million, reflecting the change in the fair value of contingent consideration, and dividend income of $64 million from our investment in ViiV.