FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 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:

	June 30, 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	$	—	$	17,680	$	—	$	—	$	10,448	$	—
Marketable debt securities:
Certificates of deposit	—		1,222		—		—		1,227		—
Commercial paper	—		100		—		—		1,093		—
Corporate debt securities	—		925		—		—		1,494		—
Derivative assets	—		121		—		—		140		—
Equity investments	2,665		187		—		2,020		175		—
Derivative liabilities	—		(25)		—		—		(40)		—
Contingent consideration liability:
Contingent value rights	2,692		—		—		2,275		—		—
Other acquisition related contingent consideration	—		—		71		—		—		106

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

The fair value of our contingent consideration as of June 30, 2020 was calculated using the following significant unobservable inputs:

	Ranges (weighted average) utilized as of:
Inputs	June 30, 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 2025 (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	Six Months Ended June 30, 2020
Fair value as of January 1	$	106
Changes in estimated fair value	(36)
Foreign exchange	1
Fair value as of June 30	$	71

Available-for-sale Securities [Table Text Block]

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

	June 30, 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	$	1,222	$	—	$	—	$	1,222	$	1,227	$	—	$	—	$	1,227
Commercial paper	100		—		—		100		1,093		—		—		1,093
Corporate debt securities	905		20		—		925		1,487		8		(1)		1,494
Total available-for-sale debt securities(a)	$	2,227	$	20	$	—	2,247		$	3,807	$	8	$	(1)	3,814
Equity investments							2,852								2,195
Total							$	5,099							$	6,009

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

The following table summarizes the net gain recorded for equity investments with readily determinable fair values held as of June 30, 2020 and 2019:

	Three Months Ended June 30,				Six Months Ended June 30,
Dollars in Millions	2020		2019		2020		2019
Net gain recognized	$	635	$	59	$	407	$	154
Less: Net gain recognized for equity investments sold	—		—		—		14
Net unrealized gain on equity investments held	$	635	$	59	$	407	$	140

Schedule of Derivatives and Fair Value [Table Text Block]

The following table summarizes the fair value of outstanding derivatives:

	June 30, 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	$	28	$	—	$	—	$	255	$	6	$	—	$	—
Cross-currency interest rate swap contracts	400		11		—		—		175		2		125		(1)
Foreign currency forward contracts	2,038		44		1,652		(22)		766		27		980		(20)
Derivatives not designated as hedging instruments:
Foreign currency forward contracts	1,170		37		284		(2)		2,342		91		1,173		(10)
Foreign currency zero-cost collar contracts	228		1		147		(1)		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 June 30, 2020				Six Months Ended June 30, 2020
Dollars in Millions	Cost of products sold		Other (income)/expense, net		Cost of products sold		Other (income)/expense, net
Interest rate swap contracts	$	—	$	(7)	$	—	$	(14)
Cross-currency interest rate swap contracts	—		(3)		—		(5)
Foreign currency forward contracts	(35)		21		(58)		(55)
Foreign currency zero-cost collar contracts	—		10		—		1

	Three Months Ended June 30, 2019				Six Months Ended June 30, 2019
Dollars in Millions	Cost of products sold		Other (income)/expense, net		Cost of products sold		Other (income)/expense, net
Interest rate swap contracts	$	—	$	(7)	$	—	$	(12)
Cross-currency interest rate swap contracts	—		(2)		—		(4)
Foreign currency forward contracts	(26)		(11)		(56)		(2)
Forward starting interest rate swap options	—		—		—		35
Deal contingent forward starting interest rate swap	—		240		—		240

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 June 30,				Six Months Ended June 30,
Dollars in Millions	2020		2019		2020		2019
Derivatives qualifying as cash flow hedges
Foreign currency forward contracts gain/(loss):
Recognized in Other Comprehensive (Loss)/Income(a)	$	(34)	$	(6)	$	63	$	39
Reclassified to Cost of products sold	(32)		(26)		(52)		(56)
Derivatives qualifying as net investment hedges
Cross-currency interest rate swap contracts gain:
Recognized in Other Comprehensive (Loss)/Income	4		(4)		10		2
Non-derivatives qualifying as net investment hedges
Non-U.S. dollar borrowings gain:
Recognized in Other Comprehensive (Loss)/Income	(32)		(6)		(12)		2

(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	June 30, 2020		December 31, 2019
Non-U.S. short-term borrowings	$	473	$	351
Current portion of long-term debt	4,253		2,763
Other	93		232
Total	$	4,819	$	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	June 30, 2020		December 31, 2019
Principal Value	$	44,348	$	44,335
Adjustments to Principal Value:
Fair value of interest rate swap contracts	28		6
Unamortized basis adjustment from swap terminations	162		175
Unamortized bond discounts and issuance costs	(264)		(280)
Unamortized purchase price adjustments of Celgene debt	1,832		1,914
Total	$	46,106	$	46,150
Current portion of long-term debt	$	4,253	$	2,763
Long-term debt	41,853		43,387
Total	$	46,106	$	46,150