v3.25.4
OTHER FINANCIAL INFORMATION
 12 Months Ended
Dec. 31, 2025
Other Financial Information [Abstract]  
OTHER FINANCIAL INFORMATION OTHER FINANCIAL INFORMATION
Accounts Receivable, Net
The following table summarizes our Accounts receivable, net:
December 31,
(in millions)20252024
Accounts receivable(1)
$5,895 $5,319 
Less: allowances for chargebacks843 759 
Less: allowances for cash discounts and other97 89 
Less: allowances for credit losses41 52 
Accounts receivable, net$4,913 $4,420 
_______________________________
(1)     As of December 31, 2025, the majority of our Accounts receivable balance arises from product sales in the U.S. and Europe and approximately 60% relates to three wholesalers—Cardinal Health, Cencora and McKesson—and their specialty distributor affiliates.
Inventories
The following table summarizes our Inventories:
December 31,
(in millions)20252024
Raw materials$1,414 $1,295 
Work in process1,306 847 
Finished goods1,647 1,447 
Total$4,368 $3,589 
Reported as:
Inventories$1,774 $1,710 
Other long-term assets(1)
2,594 1,879 
Total$4,368 $3,589 
_______________________________
(1)     As of December 31, 2025, this amount primarily consists of raw materials and work in process.
As of December 31, 2025, we held approximately $613 million of pre-commercial Trodelvy inventory for which the manufacturing process has not yet been approved by FDA.
Prepaid and Other Current Assets
The following table summarizes the components of Prepaid and other current assets:
December 31,
(in millions)20252024
Prepaid taxes$899 $480 
Equity securities1,981 1,577 
Other1,144 995 
Prepaid and other current assets$4,024 $3,052 
Property, Plant and Equipment, Net
The following table summarizes our Property, plant and equipment, net by asset type:
December 31,
(in millions)20252024
Land and land improvements$561 $561 
Buildings and improvements (including leasehold improvements)4,622 4,539 
Laboratory and manufacturing equipment1,241 1,192 
Internal-use software666 692 
Other466 397 
Construction in progress745 501 
Subtotal8,302 7,884 
Less: accumulated depreciation2,696 2,470 
Total$5,606 $5,414 
The following table summarizes our Property, plant and equipment, net by geography:
December 31,
(in millions)20252024
U.S.$4,975 4,787 
International(1)
631 627 
Total$5,606 $5,414 
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(1)    All individual international locations accounted for less than 10% of the total balances.
The following table summarizes Depreciation expense:
Year Ended December 31,
(in millions)202520242023
Depreciation expense$370 $381 $354 
Other Current Liabilities
The following table summarizes the components of Other current liabilities:
December 31,
(in millions)20252024
Compensation and employee benefits$1,298 $1,228 
Income taxes payable92 1,646 
Allowance for sales returns321 321 
Other2,243 2,269 
Other current liabilities$3,953 $5,464 
Accumulated Other Comprehensive Income
The following table summarizes the changes in Accumulated other comprehensive income by component, net of tax:
(in millions)Foreign Currency TranslationAvailable-for-Sale Debt SecuritiesCash Flow HedgesTotal
Balance as of December 31, 2022$2 $(33)$33 $2 
Net unrealized gain (loss), net of income tax benefit of $0, $0, and $(2), respectively
$60 $26 $(12)$75 
Loss (gain) reclassified to net income, net of income tax expense of $0, $0, and $7, respectively
— 2 (51)(49)
Other comprehensive income (loss), net60 28 (62)26 
Balance as of December 31, 2023$62 $(5)$(29)$28 
Net unrealized (loss) gain, net of income tax expense of $0, $0, and $21, respectively
$(26)$— $149 $124 
Loss (gain) reclassified to net income, net of income tax expense of $0, $0, and $3, respectively
— 5 (24)(19)
Other comprehensive (loss) income, net(26)5 125 104 
Balance as of December 31, 2024$36 $— $96 $132 
Net unrealized gain (loss), net of income tax expense (benefit) of $0, $3, and $(20), respectively
$38 $9 $(143)$(97)
(Gain) loss reclassified to net income, net of income tax expense (benefit) of $0, $0, and $(1), respectively
— — 5 4 
Other comprehensive income (loss), net38 8 (139)(93)
Balance as of December 31, 2025$74 $8 $(43)$39 
The following table summarizes the reclassifications out of Accumulated other comprehensive income and into Net income, including the affected line items from our Consolidated Statements of Operations:
Year Ended December 31,
(in millions)202520242023Line Item Affected
Net (loss) gain related to cash flow hedges$(5)$27 $58 Product sales
Net (gain) loss related to available-for-sale debt securities$(1)$5 $2 Other (income) expense, net
Income tax (benefit) expense$(1)$3 $7 Income tax (benefit) expense
Restructuring
In 2025 and 2024, we incurred restructuring charges primarily related to reductions in our workforce. In 2023, we incurred restructuring charges primarily related to changes in our manufacturing strategy which included a decision to no longer utilize certain facilities. As a result of this decision, we determined that the related assets were fully impaired based on the difference between fair value and the carrying amount. The total charges in 2023 consisted of write-offs of manufacturing assets of $381 million, write-offs of inventory of $89 million and other costs of $57 million.
The following table summarizes the affected line items from our Consolidated Statements of Operations:
Year Ended December 31,
(in millions)202520242023
Cost of goods sold$4 $— $479 
Research and development expenses68 98 20 
Selling, general and administrative expenses66 91 28 
Restructuring charges$138 $188 $527 
As of December 31, 2025, we had a remaining liability of $61 million on our Consolidated Balance Sheets associated with restructuring charges, a majority of which we anticipate will be paid in the next 12 months.
Other (Income) Expense, Net
The following table summarizes the components of Other (income) expense, net:
Year Ended December 31,
(in millions)202520242023
(Gain) loss from equity securities, net$(451)$274 $167 
Interest income(349)(281)(376)
Other, net1 2 11 
Other (income) expense, net$(798)$(6)$(198)