Pharmaceuticals & Biotech: Supplier finance programs (ASU 2022-04)

The Company has agreements for supplier finance programs with third-party financial institutions. These programs provide participating suppliers the ability to finance payment obligations from the Company with the third-party financial institutions. The Company is not a party to the arrangements between the suppliers and the third-party financial institutions. The Company’s obligations to its suppliers, including amounts due, and scheduled payment dates (which have general payment terms of 90 days), are not affected by a participating supplier’s decision to participate in the program.

Confirmed obligations under the program as of December 28, 2025, and December 29, 2024, were $ 0.8 billion and $ 0.8 billion, respectively. The obligations are presented as Accounts payable on the Consolidated Balance Sheets.

The rollforward of the Company's valid obligations under the program were as follows:

2025	2024
(Dollars in Millions)
Confirmed obligations - beginning of the year	$ 788	704
Invoices confirmed during the year	2,997	3,048
Confirmed invoices paid during the year	3,016	2,964
Effect of exchange rates	15	—
Confirmed obligations - end of the year	$ 784	788

Kenvue IPO/separation and discontinued operations

On May 8, 2023, Kenvue, completed an initial public offering (the IPO) resulting in the issuance of 198,734,444 shares of its common stock, par value $ 0.01 per share (the Kenvue Common Stock), at an initial public offering of $ 22.00 per share for net proceeds of $ 4.2 billion. The excess of the net proceeds from the IPO over the net book value of the Johnson & Johnson divested interest was $ 2.5 billion and was recorded to additional paid-in capital. As of the closing of the IPO, Johnson & Johnson owned approximately 89.6 % of the total outstanding shares of Kenvue Common Stock.

We maintain voluntary supply chain finance agreements with several participating financial institutions. Under these agreements, participating suppliers may voluntarily elect to sell their accounts receivable with Pfizer to these financial institutions. Our suppliers negotiate their financing agreements directly with the respective financial institutions and we are not a party to these agreements. We have no economic interest in our suppliers’ decision to participate and we pay the financial institutions the stated amount of confirmed invoices on the original maturity dates, which is generally within 90 to 120 days of the invoice date. The agreements with the financial institutions do not require Pfizer to provide assets pledged as security or other forms of guarantees for the supplier finance program. All outstanding amounts related to suppliers participating in such financing arrangements are recorded within trade payables in our consolidated balance sheet.

Pfizer Inc.

2025 Form 10-K

82

Notes to Consolidated Financial Statements

Pfizer Inc. and Subsidiary Companies