XML 69 R40.htm IDEA: XBRL DOCUMENT v3.20.4
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables)
 12 Months Ended
Dec. 31, 2020
Financial Instruments [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:
December 31, 2020December 31, 2019
Dollars in MillionsLevel 1Level 2Level 3Level 1Level 2Level 3
Cash and cash equivalents - money market and other securities$— $12,361 $— $— $10,448 $— 
Marketable debt securities:
Certificates of deposit— 1,020 — — 1,227 — 
Commercial paper— — — — 1,093 — 
Corporate debt securities— 698 — — 1,494 — 
Derivative assets— 42 27 — 140 — 
Equity investments3,314 138 — 2,020 175 — 
Derivative liabilities— (270)— — (40)— 
Contingent consideration liability:
Contingent value rights530 — — 2,275 — — 
Other acquisition related contingent consideration— — 78 — — 106 
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block]
Ranges (weighted average) utilized as of:
InputsDecember 31, 2020December 31, 2019
Discount rate
0.2% to 0.8% (0.5%)
2.2% to 3.2% (2.6%)
Probability of payment
0% to 80% (2.7%)
0% to 68% (4.1%)
Projected year of payment for development and regulatory milestones
2021 to 2025
2020 to 2029
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]
Year Ended December 31, 2020Year Ended December 31, 2019
Dollars in MillionsAssetLiabilityAssetLiability
Fair value as of January 1$— $106 $— $— 
Changes in estimated fair value— (33)— — 
Acquisitions27 — — 106 
Foreign exchange— 5 — — 
Fair value as of December 31$27 $78 $— $106 
Available-for-sale Securities [Table Text Block]
December 31, 2020December 31, 2019
Dollars in MillionsAmortized
Cost		Gross UnrealizedFair ValueAmortized
Cost		Gross UnrealizedFair Value
GainsLossesGainsLosses
Certificates of deposit$1,020 $— $— $1,020 $1,227 $— $— $1,227 
Commercial paper— — — — 1,093 — — 1,093 
Corporate debt securities684 14 — 698 1,487 8 (1)1,494 
Total available-for-sale debt securities(a)
$1,704 $14 $— 1,718 $3,807 $8 $(1)3,814 
(a)    All marketable debt securities mature within five years as of December 31, 2020 and 2019.
Debt Securities, Trading, and Equity Securities, FV-NI [Table Text Block]
Dollars in Millions20202019
Equity investments with readily determinable fair values$3,452 $2,195 
Equity investments without readily determinable fair values694 781 
Equity method and other investment549 429 
Total equity investments$4,695 $3,405 
Schedule of Equity Investments
Dollars in Millions202020192018
Net gain/(loss) recognized on equity investments with readily determinable fair values(a)
$1,169 $170 $(530)
Realized (loss)/gain recognized on equity investments with readily determinable fair value sold(12)14 7 
Upward adjustments on equity investments without readily determinable fair value183 58 19 
Impairments and downward adjustments on equity investments without readily determinable fair value(204)(27)— 
Cumulative upward adjustments on equity investments without readily determinable fair value192 
Cumulative impairments and downward adjustments on equity investments without readily determinable fair value(193)
(a)    Net unrealized net gains on equity investments still held were $1.2 billion in 2020 and $156 million in 2019. Unrealized net losses on equity investments still held were $537 million in 2018.
Schedule of Derivatives and Fair Value [Table Text Block]
The following summarizes the fair value of outstanding derivatives:
 December 31, 2020December 31, 2019
Asset(a)
Liability(b)
Asset(a)
Liability(b)
Dollars in MillionsNotionalFair ValueNotionalFair ValueNotionalFair ValueNotionalFair Value
Derivatives designated as hedging instruments:
Interest rate swap contracts$255 $24 $— $— $255 $6 $— $— 
Cross-currency interest rate swap contracts— — 400 (10)175 2 125 (1)
Foreign currency forward contracts231 1 5,813 (259)766 27 980 (20)
Derivatives not designated as hedging instruments:
Foreign currency forward contracts1,104 17 336 (1)2,342 91 1,173 (10)
Foreign currency zero-cost collar contracts— — — — 2,482 14 2,235 (9)
Other— 27 — — — — — — 
(a)    Included in Other current assets and Other non-current assets.
(b)    Included in Other current liabilities and Other non-current liabilities.
Derivative Instruments, Gain (Loss) [Table Text Block]
The following table summarizes the financial statement classification and amount of (gain)/loss recognized on hedging instruments:
Year Ended December 31,
202020192018
Dollars in MillionsCost of products soldOther (income)/expense, netCost of products soldOther (income)/expense, netCost of products soldOther (income)/expense, net
Interest rate swap contracts$— $(29)$— $(24)$— $(23)
Cross-currency interest rate swap contracts— (10)— (9)— (8)
Foreign currency forward contracts(18)(23)(103)11 (4)(14)
Forward starting interest rate swap option contracts— — — 35 — — 
Deal contingent forward starting interest rate swap contracts— — — 240 — — 
Foreign currency zero-cost collar contracts— — — 2 — — 
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:
Year Ended December 31,
Dollars in Millions202020192018
Derivatives qualifying as cash flow hedges
Foreign currency forward contracts gain/(loss):
Recognized in Other Comprehensive (Loss)/Income(a)
$(267)$65 $86 
Reclassified to Cost of products sold(54)(103)(4)
Treasury lock hedge contracts gain:
Recognized in Other Comprehensive (Loss)/Income51 — — 
Derivatives qualifying as net investment hedges
Cross-currency interest rate swap contracts gain/(loss):
Recognized in Other Comprehensive (Loss)/Income(11)6 (5)
Non-derivatives qualifying as net investment hedges
Non U.S. dollar borrowings gain/(loss):
Recognized in Other Comprehensive (Loss)/Income(105)29 45 
(a)    The majority 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:
December 31,
Dollars in Millions20202019
Non-U.S. short-term borrowings$176 $351 
Current portion of long-term debt2,000 2,763 
Other164 232 
Total$2,340 $3,346 
Schedule of Long-term Debt Instruments [Table Text Block]
Long-term debt and the current portion of long-term debt includes:
 December 31,
Dollars in Millions20202019
Principal Value:
Floating Rate Notes due 2020$— $750 
2.875% Notes due 2020— 1,500 
3.950% Notes due 2020— 500 
2.250% Notes due 2021500 500 
2.550% Notes due 20211,000 1,000 
2.875% Notes due 2021500 500 
Floating Rate Notes due 2022500 500 
2.000% Notes due 2022750 750 
2.600% Notes due 20221,500 1,500 
3.250% Notes due 20221,000 1,000 
3.550% Notes due 20221,000 1,000 
0.537% Notes due 20231,500 — 
2.750% Notes due 2023750 750 
3.250% Notes due 2023500 500 
3.250% Notes due 20231,000 1,000 
4.000% Notes due 2023700 700 
7.150% Notes due 2023302 302 
2.900% Notes due 20243,250 3,250 
3.625% Notes due 20241,000 1,000 
0.750% Notes due 20251,000 — 
1.000% Euro Notes due 2025701 638 
3.875% Notes due 20252,500 2,500 
3.200% Notes due 20262,250 2,250 
6.800% Notes due 2026256 256 
1.125% Notes due 20271,000 — 
3.250% Notes due 2027750 750 
3.450% Notes due 20271,000 1,000 
3.900% Notes due 20281,500 1,500 
3.400% Notes due 20294,000 4,000 
1.450% Notes due 20301,250 — 
1.750% Euro Notes due 2035701 638 
5.875% Notes due 2036287 287 
6.125% Notes due 2038226 226 
4.125% Notes due 20392,000 2,000 
2.350% Notes due 2040750 — 
5.700% Notes due 2040250 250 
3.250% Notes due 2042500 500 
5.250% Notes due 2043400 400 
4.500% Notes due 2044500 500 
4.625% Notes due 20441,000 1,000 
5.000% Notes due 20452,000 2,000 
4.350% Notes due 20471,250 1,250 
4.550% Notes due 20481,500 1,500 
4.250% Notes due 20493,750 3,750 
2.550% Notes due 20501,500 — 
6.875% Notes due 209787 87 
0.13% - 5.75% Other - maturing through 202451 51 
Total$48,711 $44,335 
 December 31,
Dollars in Millions20202019
Principal Value$48,711 $44,335 
Adjustments to Principal Value:
Fair value of interest rate swap contracts24 6 
Unamortized basis adjustment from swap terminations149 175 
Unamortized bond discounts and issuance costs(303)(280)
Unamortized purchase price adjustments of Celgene debt1,755 1,914 
Total$50,336 $46,150 
Current portion of long-term debt2,000 2,763 
Long-term debt48,336 43,387 
Total$50,336 $46,150