v3.20.4
Acquisitions, Divestitures, Equity-Method Investments, Licensing Arrangements and Collaborative Arrangements (Tables)
 12 Months Ended
Dec. 31, 2020
Business Combinations, Discontinued Operations And Disposal Groups, Collaborative Arrangements And Equity Method Investments [Abstract]  
Summarized Financial Information of Discontinued Operations
Components of Income from discontinued operations––net of tax:
Year Ended December 31,(a)
(MILLIONS OF DOLLARS)202020192018
Revenues$7,314 $10,578 $12,822 
Costs and expenses:
Cost of sales1,899 1,976 2,261 
Selling, informational and administrative expenses1,665 1,599 1,842 
Research and development expenses212 255 246 
Amortization of intangible assets 136 148 157 
Restructuring charges and certain acquisition-related costs7 146 (14)
Other (income)/deductions––net400 253 30 
Pre-tax income from discontinued operations2,995 6,201 8,300 
Provision for taxes on income364 766 973 
Income from discontinued operations––net of tax$2,631 $5,435 $7,328 
(a) Virtually all Income from discontinued operations––net of tax relates to the Upjohn Business and the Mylan-Japan collaboration in all periods presented.
Components of assets and liabilities of discontinued operations and other assets held for sale:
As of December 31,(a)
(MILLIONS OF DOLLARS)20202019
Cash and cash equivalents$— $184 
Trade accounts receivable, less allowance for doubtful accounts— 1,952 
Inventories86 1,215 
Other current assets— 852 
Other assets held for sale82 21 
Current assets of discontinued operations and other assets held for sale$167 $4,224 
Property, plant and equipment$— $998 
Identifiable intangible assets— 1,434 
Goodwill— 10,451 
Other noncurrent assets— 544 
Noncurrent assets of discontinued operations$— $13,427 
Trade accounts payable$— $334 
Accrued compensation and related items— 330 
Other current liabilities— 1,749 
Current liabilities of discontinued operations$— $2,413 
Pension and postretirement benefit obligations$— $545 
Other noncurrent liabilities— 403 
Noncurrent liabilities of discontinued operations(b)
$— $948 
(a) Amounts relate to discontinued operations of the Upjohn Business and the Mylan-Japan collaboration, except for amounts in Other assets held for sale, which represent unrelated property, plant and equipment held for sale.
(b) Included in Other noncurrent liabilities.
Summarized Financial Information of Equity Method Investments
Summarized financial information for our equity method investee, the Consumer Healthcare JV, as of and for the twelve months ending September 30, 2020, the most recent period available, and as of and for the two months ending September 30, 2019 is as follows:
(MILLIONS OF DOLLARS)September 30, 2020September 30, 2019
Current assets$6,614 $7,505 
Noncurrent assets38,361 38,575 
Total assets
$44,975 $46,081 
Current liabilities$5,246 $5,241 
Noncurrent liabilities5,330 5,536 
Total liabilities
$10,576 $10,776 
Equity attributable to shareholders$34,154 $35,199 
Equity attributable to noncontrolling interests245 105 
Total net equity$34,400 $35,304 
For the Twelve Months EndingFor the Two Months
Ending
(MILLIONS OF DOLLARS)September 30, 2020September 30, 2019
Net sales$12,720 $2,161 
Cost of sales(5,439)(803)
Gross profit$7,281 $1,358 
Income from continuing operations1,350 152 
Net income1,350 152 
Income attributable to shareholders1,307 148 
Summarized financial information for our equity method investee, ViiV, as of December 31, 2020 and 2019 and for the years ending December 31, 2020, 2019, and 2018 is as follows:
As of December 31,
(MILLIONS OF DOLLARS)20202019
Current assets$3,283 $3,839 
Noncurrent assets3,381 3,437 
Total assets
$6,664 $7,276 
Current liabilities$3,028 $2,904 
Noncurrent liabilities6,370 5,860 
Total liabilities
$9,398 $8,765 
Total net equity/(deficit) attributable to shareholders$(2,734)$(1,489)
Year Ended December 31,
(MILLIONS OF DOLLARS)202020192018
Net sales$6,224 $6,139 $6,219 
Cost of sales(574)(516)(462)
Gross profit$5,650 $5,623 $5,757 
Income from continuing operations2,012 3,398 2,154 
Net income2,012 3,398 2,154 
Income attributable to shareholders2,012 3,398 2,154 
Schedule of Collaborative Arrangements and Non-collaborative Arrangement Transactions
The following provides the amounts and classification of payments (income/(expense)) between us and our collaboration partners:
Year Ended December 31,
(MILLIONS OF DOLLARS)202020192018
Revenues—Revenues(a)
$284 $305 $268 
Revenues—Alliance revenues(b)
5,418 4,648 3,838 
Total revenues from collaborative arrangements$5,703 $4,953 $4,107 
Cost of sales(c)
$(61)$(52)$(34)
Selling, informational and administrative expenses(d)
(194)(176)(92)
Research and development expenses(e)
(192)104 162 
Other income/(deductions)—net(f)
567 362 281 
(a)Represents sales to our partners of products manufactured by us.
(b)Substantially all relates to amounts earned from our partners under co-promotion agreements. The increases in each of the periods presented reflect increases in alliance revenues from Eliquis and Xtandi.
(c)Primarily relates to amounts paid to collaboration partners for their share of net sales or profits earned in collaboration arrangements where we are the principal in the transaction, and cost of sales for inventory purchased from our partners.
(d)Represents net reimbursements to our partners for selling, informational and administrative expenses incurred.
(e)Primarily relates to upfront payments and pre-approval milestone payments earned by our partners as well as net reimbursements.
(f)Primarily relates to royalties from our collaboration partners.