Other (Income)/Deductions - Net

3 Months Ended

Apr. 04, 2021

Other Income and Expenses [Abstract]

Other (Income)/Deductions—Net


Components of Other (income)/deductions––net include:
	Three Months Ended
(MILLIONS)		April 4, 2021		March 29, 2020
Interest income		$	—	$	(34)
Interest expense		336		390
Net interest expense		336		356
Royalty-related income		(176)		(119)
Net (gains)/losses on asset disposals		(39)		1
Net (gains)/losses recognized during the period on equity securities(a)		(401)		255
Income from collaborations, out-licensing arrangements and sales of compound/product rights(b)		(231)		(115)
Net periodic benefit costs/(credits) other than service costs(c)		(266)		(103)
Certain legal matters, net		51		9


Consumer Healthcare JV equity method (income)/loss(d)		(62)		33
Other, net		(216)		(126)
Other (income)/deductions––net		$	(1,004)	$	190

(a)The gains in the first quarter of 2021 include, among other things, unrealized gains of $409 million related to investments in Allogene and BioNTech. The losses in the first quarter of 2020 include, among other things, unrealized losses of $134 million related to our investment in Allogene.

(b)The first quarter of 2021 includes, among other things, $188 million of net collaboration income from BioNTech related to the COVID-19 vaccine. 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.

(c)Amounts include the impact of a change in accounting principle. See Notes 1C and 10.

(d)See Note 2B.