Other Financial Information (Tables)

12 Months Ended

Dec. 31, 2023

Other Financial Information [Abstract]

Schedule of Components of Inventories, Current

The following summarizes the components of Inventories:
	As of December 31,
(MILLIONS)	2023		2022
Finished goods	$	3,495	$	2,603
Work-in-process	5,688		5,519
Raw materials and supplies	1,007		859
Inventories(a)	$	10,189	$	8,981
Noncurrent inventories not included above(b)	$	4,568	$	5,827

(a)The increase from December 31, 2022 of $1.2 billion reflects an increase of approximately $1.0 billion representing acquired Seagen inventory, inclusive of the fair value step-up (see Note 2A), and increases for certain products due to new product launches, supply recovery and changes in net market demand. These increases were offset to a large extent by $1.0 billion in inventory write-offs for Paxlovid and Comirnaty.

(b)Included in Other noncurrent assets. The decrease from December 31, 2022 of $1.3 billion is primarily driven by inventory write-offs for Paxlovid of $4.2 billion and, to a lesser extent, inventory write-offs for Comirnaty of $0.7 billion, offset to a large extent by an increase of approximately $3.1 billion representing acquired Seagen inventory, inclusive of the fair value step-up (see Note 2A). The charges and corresponding inventory write-offs were based on our analysis of Paxlovid and Comirnaty inventory levels as of December 31, 2023 in relation to our commercial outlook for both products. Based on current estimates and assumptions, there are no recoverability issues for these amounts.

Schedule of Components of Inventories, Noncurrent

The following summarizes the components of Inventories:
	As of December 31,
(MILLIONS)	2023		2022
Finished goods	$	3,495	$	2,603
Work-in-process	5,688		5,519
Raw materials and supplies	1,007		859
Inventories(a)	$	10,189	$	8,981
Noncurrent inventories not included above(b)	$	4,568	$	5,827

(a)The increase from December 31, 2022 of $1.2 billion reflects an increase of approximately $1.0 billion representing acquired Seagen inventory, inclusive of the fair value step-up (see Note 2A), and increases for certain products due to new product launches, supply recovery and changes in net market demand. These increases were offset to a large extent by $1.0 billion in inventory write-offs for Paxlovid and Comirnaty.

(b)Included in Other noncurrent assets. The decrease from December 31, 2022 of $1.3 billion is primarily driven by inventory write-offs for Paxlovid of $4.2 billion and, to a lesser extent, inventory write-offs for Comirnaty of $0.7 billion, offset to a large extent by an increase of approximately $3.1 billion representing acquired Seagen inventory, inclusive of the fair value step-up (see Note 2A). The charges and corresponding inventory write-offs were based on our analysis of Paxlovid and Comirnaty inventory levels as of December 31, 2023 in relation to our commercial outlook for both products. Based on current estimates and assumptions, there are no recoverability issues for these amounts.