v3.25.4
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives (Tables)
 12 Months Ended
Dec. 31, 2025
Restructuring and Related Activities [Abstract]  
Schedule Providing Components of Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives
The following summarizes costs and credits for acquisitions and cost-reduction/productivity initiatives:
Year Ended December 31,
(MILLIONS)202520242023
Restructuring charges/(credits):
Employee terminations$684 $1,152 $1,622 
Asset impairments349 432 227 
Exit costs
59 403 119 
Restructuring charges/(credits)(a)
1,092 1,987 1,968 
Transaction costs(b)
118 5 190 
Integration costs and other(c)
340 427 785 
Restructuring charges and certain acquisition-related costs
1,550 2,419 2,943 
Net periodic benefit costs/(credits) recorded in Other (income)/deductions––net
(78)7 (7)
Inventory write-offs––recorded in Cost of sales
33 — — 
Additional depreciation––asset restructuring recorded in our consolidated statements of operations as follows(d):
Cost of sales38 14 31 
Selling, informational and administrative expenses— 5 1 
Research and development expenses1 — — 
Total additional depreciation––asset restructuring
38 19 32 
Implementation costs recorded in our consolidated statements of operations as follows(e):
Cost of sales116 120 67 
Selling, informational and administrative expenses116 90 289 
Research and development expenses189 84 101 
Total implementation costs
421 294 457 
Total costs associated with acquisitions and cost-reduction/productivity initiatives$1,965 $2,738 $3,426 
(a)Primarily represents cost-reduction initiatives. Amounts associated with our Biopharma segment: (i) charges of $691 million for 2025 (including charges of $920 million for our Realigning our Cost Base Program and credits of $288 million for our Manufacturing Optimization Program), (ii) charges of $1.8 billion for 2024 (including charges of $1.2 billion our Manufacturing Optimization Program and charges of $571 million for our Realigning our Cost Base Program) and (iii) charges of $1.5 billion for 2023 (including charges of $1.4 billion for our Realigning our Cost Base Program and charges of $3 million for our Transforming to a More Focused Company program, that we have substantially completed). For 2025 and 2024, Employee terminations include revisions of estimates of previously recorded accruals for severance benefits, driven in large part by higher-than-expected voluntary attrition.
(b)Represents external costs for banking, legal, accounting and other similar services.
(c)Represents external, incremental costs directly related to integrating acquired businesses, such as expenditures for consulting and the integration of systems and processes, and certain other qualifying costs. 2023 costs mostly relate to our acquisition of Seagen, including $476 million that was recognized as a post-closing compensation expense for payments to Seagen employees in the fourth quarter of 2023 for the fair value of long-term incentive awards that vested upon closing and the expense for employee incentive awards issued in contemplation of the merger. See Note 2A.
(d)Represents the impact of changes in the estimated useful lives of assets involved in restructuring actions.
(e)Represents incremental costs directly related to implementing our non-acquisition-related cost-reduction/productivity initiatives.
Schedule of Restructuring Reserve by Type of Cost
The following summarizes the components and changes in restructuring accruals:
(MILLIONS)Employee
Termination
Costs		Asset
Impairment
Charges		Exit CostsAccrual
Balance, January 1, 2024
$1,978 $— $11 $1,988 
Provision1,152 432 403 1,987 
Utilization and other(a)
(1,083)(432)(341)(1,856)
Balance, December 31, 2024(b)
2,046 — 74 2,120 
Provision684 349 59 1,092 
Utilization and other(a)
(947)(349)(6)(1,302)
Balance, December 31, 2025(c)
$1,783 $— $127 $1,910 
(a)Other activity includes adjustments for foreign currency translation that are not material to our consolidated financial statements.
(b)Included in Other current liabilities ($1.7 billion) and Other noncurrent liabilities ($437 million).
(c)Included in Other current liabilities ($1.4 billion) and Other noncurrent liabilities ($466 million).