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FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables)
9 Months Ended
Sep. 30, 2021
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:
September 30, 2021December 31, 2020
Dollars in MillionsLevel 1Level 2Level 3Level 1Level 2Level 3
Cash and cash equivalents - money market and other securities$— $11,660 $— $— $12,361 $— 
Marketable debt securities:
Certificates of deposit— 1,688 — — 1,020 — 
Commercial paper— 10 — — — — 
Corporate debt securities— 471 — — 698 — 
Derivative assets— 193 19 — 42 27 
Equity investments3,733 145 — 3,314 138 — 
Derivative liabilities— 12 — — 270 — 
Contingent consideration liability:
Contingent value rights— — 530 — — 
Other acquisition related contingent consideration— — 67 — — 78 
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block] The fair value of other acquisition related contingent consideration as of September 30, 2021 was calculated using the following significant unobservable inputs:
Ranges (weighted average) utilized as of:
InputsSeptember 30, 2021
Discount rate
0.3% to 1.3% (0.6%)
Probability of payment
0% to 80% (2.4%)
Projected year of payment for development and regulatory milestones
2022 to 2028
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:
Nine Months Ended September 30, 2021Nine Months Ended September 30, 2020
Dollars in MillionsAssetLiabilityAssetLiability
Fair value as of January 1$27 $78 $— $106 
Changes in estimated fair value(8)— (35)
Payments— (12)— — 
Foreign exchange— (2)— 
Fair value as of September 30$19 $67 $— $73 
Schedule of Equity Investments [Table Text Block]
The following summarizes the carrying amount of equity investments:
Dollars in MillionsSeptember 30,
2021
December 31,
2020
Equity investments with readily determinable fair values$3,878 $3,452 
Equity investments without readily determinable fair values399 694 
Equity method investments621 549 
Total equity investments$4,898 $4,695 
Debt Securities, Trading, and Equity Securities, FV-NI [Table Text Block]
The following summarizes the activity related to equity investments. Changes in fair value of equity investments are included in Other (income)/expense, net.
Three Months Ended September 30,Nine Months Ended September 30,
Dollars in Millions2021202020212020
Net loss/(gain) recognized on equity investments with readily determinable fair values$22 $(170)$(93)$(577)
Net loss/(gain) recognized on equity investments with readily determinable fair value sold— (91)— 
Net unrealized loss/(gain) recognized on equity investments with readily determinable fair value still held19 (170)(2)(577)
Upward adjustments on equity investments without readily determinable fair value(447)(46)(908)(319)
Impairments and downward adjustments on equity investments without readily determinable fair value— 204 
Cumulative upward adjustments on equity investments without readily determinable fair value(207)
Cumulative impairments and downward adjustments on equity investments without readily determinable fair value80 
Equity in net (income)/loss of affiliates(40)(30)(214)(30)
Schedule of Derivatives and Fair Value [Table Text Block]
The following table summarizes the fair value of outstanding derivatives:
 September 30, 2021December 31, 2020
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 $14 $— $— $255 $24 $— $— 
Cross-currency interest rate swap contracts600 16 — — — — 400 (10)
Foreign currency forward contracts4,643 149 229 (6)231 5,813 (259)
Derivatives not designated as hedging instruments:
Foreign currency forward contracts704 14 526 (6)1,104 17 336 (1)
Other— 19 — — — 27 — — 
(a)    Included in Other current assets and Other non-current assets.
(b)    Included in Other current liabilities and Other non-current liabilities.
Derivative Instruments, Gain (Loss) [Table Text Block]
The following table summarizes the financial statement classification and amount of (gain)/loss recognized on hedging instruments:
Three Months Ended September 30, 2021Nine Months Ended September 30, 2021
Dollars in MillionsCost of products soldOther (income)/expense, netCost of products soldOther (income)/expense, net
Interest rate swap contracts$— $(7)$— $(22)
Cross-currency interest rate swap contracts— (2)— (8)
Foreign currency forward contracts19 145 (14)
Three Months Ended September 30, 2020Nine Months Ended September 30, 2020
Dollars in MillionsCost of products soldOther (income)/expense, netCost of products soldOther (income)/expense, net
Interest rate swap contracts$— $(7)$— $(21)
Cross-currency interest rate swap contracts— (3)— (8)
Foreign currency forward contracts(5)14 (63)(41)
Foreign currency zero-cost collar contracts— — — 
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 Income/(Loss):
Three Months Ended September 30,Nine Months Ended September 30,
Dollars in Millions2021202020212020
Derivatives qualifying as cash flow hedges
Foreign currency forward contracts gain/(loss):
Recognized in Other Comprehensive Income/(Loss)(a)
$93 $(128)$314 $(65)
Reclassified to Cost of products sold37 (17)126 (69)
Derivatives qualifying as net investment hedges
Cross-currency interest rate swap contracts gain:
Recognized in Other Comprehensive Income/(Loss)— (11)26 (1)
Non-derivatives qualifying as net investment hedges
Non-U.S. dollar borrowings gain:
Recognized in Other Comprehensive Income/(Loss)20 (39)45 (51)
(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:
Dollars in MillionsSeptember 30,
2021
December 31,
2020
Non-U.S. short-term borrowings$81 $176 
Current portion of long-term debt4,769 2,000 
Other215 164 
Total$5,065 $2,340 
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 MillionsSeptember 30,
2021
December 31,
2020
Principal Value$43,141 $48,711 
Adjustments to Principal Value:
Fair value of interest rate swap contracts14 24 
Unamortized basis adjustment from swap terminations124 149 
Unamortized bond discounts and issuance costs(270)(303)
Unamortized purchase price adjustments of Celgene debt1,437 1,755 
Total$44,446 $50,336 
Current portion of long-term debt$4,769 $2,000 
Long-term debt39,677 48,336 
Total$44,446 $50,336 
Marketable Securities
The following table summarizes available-for-sale debt securities:
September 30, 2021December 31, 2020
Dollars in MillionsAmortized CostGross UnrealizedAmortized CostGross Unrealized
GainsLossesFair ValueGainsLossesFair Value
Certificates of deposit$1,688 $— $— $1,688 $1,020 $— $— $1,020 
Commercial paper10 — — 10 — — — — 
Corporate debt securities466 — 471 684 14 — 698 
Total available-for-sale debt securities(a)
$2,164 $$— $2,169 $1,704 $14 $— $1,718 
(a)    All marketable debt securities mature within two years as of September 30, 2021 and December 31, 2020.