FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

Financial assets and liabilities measured at fair value on a recurring basis are summarized below:

	March 31, 2020							December 31, 2019
Dollars in Millions	Level 1		Level 2			Level 3		Level 1		Level 2			Level 3
Cash and cash equivalents - money market and other securities	$	—	$	13,528		$	—	$	—	$	10,448		$	—
Marketable debt securities:
Certificates of deposit	—		1,062			—		—		1,227			—
Commercial paper	—		869			—		—		1,093			—
Corporate debt securities	—		1,225			—		—		1,494			—
Derivative assets			202					—		140			—
Equity investments	1,822		145			—		2,020		175			—
Derivative liabilities	—		(29		)	—		—		(40		)	—
Contingent consideration liability:
Contingent value rights	2,862		—			—		2,275		—			—
Other acquisition related contingent consideration	—		—			69		—		—			106

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block]

The fair value of our contingent consideration as of March 31, 2020 was calculated using the following significant unobservable inputs:

	Ranges (weighted average) utilized as of:
Inputs	March 31, 2020
Discount rate	2.2% to 2.7% (2.4%)
Probability of payment	0% to 80% (2.6%)
Projected year of payment for development and regulatory milestones	2020 to 2029 (2022)
Projected year of payment for sales-based milestones and other amounts calculated as a percentage of annual sales	N/A

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

The following table represents a roll-forward of the fair value of level 3 instruments:

Dollars in Millions	Three Months Ended March 31, 2020
Fair value as of January 1	$	106
Changes in estimated fair value	(36		)
Foreign exchange	(1		)
Fair value as of March 31	$	69

Available-for-sale Securities [Table Text Block]

Changes in fair value of equity investments are included in Other expense/(income), net. The following table summarizes available-for-sale debt securities and equity investments:

	March 31, 2020									December 31, 2019
Dollars in Millions	Amortized Cost		Gross Unrealized							Amortized Cost		Gross Unrealized
			Gains		Losses			Fair Value				Gains		Losses			Fair Value
Certificates of deposit	$	1,062	$	—	$	—		$	1,062	$	1,227	$	—	$	—		$	1,227
Commercial paper	869		—		—			869		1,093		—		—			1,093
Corporate debt securities	1,216		11		(2		)	1,225		1,487		8		(1		)	1,494
	$	3,147	$	11	$	(2	)	3,156		$	3,807	$	8	$	(1	)	3,814
Equity investments								1,967									2,195
Total								$	5,123								$	6,009

Dollars in Millions	March 31, 2020		December 31, 2019
Marketable debt securities - current	$	2,505	$	3,047
Marketable debt securities - non-current(a)	651		767
Other non-current assets	1,967		2,195
Total	$	5,123	$	6,009

(a) All non-current marketable debt securities mature within five years as of March 31, 2020 and December 31, 2019.

Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Table Text Block]

The following table summarizes the net (loss)/gain recorded for equity investments with readily determinable fair values held as of March 31, 2020 and 2019:

	Three Months Ended March 31,
Dollars in Millions	2020			2019
Net (loss)/gain recognized	$	(228	)	$	95
Less: Net gain recognized for equity investments sold	—			14
Net unrealized (loss)/gain on equity investments held	$	(228	)	$	81

Schedule of Derivatives and Fair Value [Table Text Block]

The following table summarizes the fair value of outstanding derivatives:

	March 31, 2020									December 31, 2019
	Asset(a)				Liability(b)					Asset(a)				Liability(b)
Dollars in Millions	Notional		Fair Value		Notional		Fair Value			Notional		Fair Value		Notional		Fair Value
Derivatives designated as hedging instruments:
Interest rate swap contracts	$	255	$	25	$	—	$	—		$	255	$	6	$	—	$	—
Cross-currency interest rate swap contracts	400		7		—		—			175		2		125		(1		)
Foreign currency forward contracts	2,383		75		301		(2		)	766		27		980		(20		)
Derivatives not designated as hedging instruments:
Foreign currency forward contracts	1,177		73		772		(19		)	2,342		91		1,173		(10		)
Foreign currency zero-cost collar contracts	1,522		22		1,597		(8		)	2,482		14		2,235		(9		)

(a) Included in Other current assets and Other non-current assets.

(b)

Included in Other current liabilities and Other non-current liabilities.

Derivative Instruments, Gain (Loss) [Table Text Block]

The following table summarizes the financial statement classification and amount of (gain)/loss recognized on hedging instruments:

	Three Months Ended March 31, 2020
Dollars in Millions	Cost of products sold			Other expense/(income), net
Interest rate swap contracts	$	—		$	(7	)
Cross-currency interest rate swap contracts	—			(2		)
Foreign currency forward contracts	(23		)	(76		)
Foreign currency zero-cost collar contracts	—			(9		)

	Three Months Ended March 31, 2019
Dollars in Millions	Cost of products sold			Other expense/(income), net
Interest rate swap contracts	$	—		$	(5	)
Cross-currency interest rate swap contracts	—			(2		)
Foreign currency forward contracts	(30		)	9
Forward starting interest rate swap options	—			35

Gain/(Loss) on Hedging Activity [Table Text Block]

The following table summarizes the effect of derivative and non-derivative instruments designated as hedging instruments in Other Comprehensive (Loss)/Income:

	Three Months Ended March 31,
Dollars in Millions	2020			2019
Derivatives qualifying as cash flow hedges
Foreign currency forward contracts gain/(loss):
Recognized in Other Comprehensive (Loss)/Income(a)	$	97		$	45
Reclassified to Cost of products sold	(20		)	(30		)
Derivatives qualifying as net investment hedges
Cross-currency interest rate swap contracts gain:
Recognized in Other Comprehensive (Loss)/Income	6			6
Non-derivatives qualifying as net investment hedges
Non-U.S. dollar borrowings gain:
Recognized in Other Comprehensive (Loss)/Income	20			8

(a)

The amount is expected to be reclassified into earnings in the next 12 months.

Schedule of Short-term Debt [Table Text Block]

Short-term debt obligations include:

Dollars in Millions	March 31, 2020		December 31, 2019
Non-U.S. short-term borrowings	$	345	$	351
Current portion of long-term debt	3,261		2,763
Other	256		232
Total	$	3,862	$	3,346

Schedule of Fair Value and Other Adjustments to Long Term Debt [Table Text Block]

Long-term debt and the current portion of long-term debt include:

Dollars in Millions	March 31, 2020			December 31, 2019
Principal Value	$	44,310		$	44,335
Adjustments to Principal Value:
Fair value of interest rate swap contracts	25			6
Unamortized basis adjustment from swap terminations	168			175
Unamortized bond discounts and issuance costs	(271		)	(280		)
Unamortized purchase price adjustments of Celgene debt	1,873			1,914
Total	$	46,105		$	46,150
Current portion of long-term debt	$	3,261		$	2,763
Long-term debt	42,844			43,387
Total	$	46,105		$	46,150