Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 26, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | JOHNSON & JOHNSON | |
Entity Central Index Key | 200,406 | |
Current Fiscal Year End Date | --12-30 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 2,681,977,969 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 16,056 | $ 17,824 |
Marketable securities | 3,308 | 472 |
Accounts receivable, trade, less allowances for doubtful accounts $281 (2017, $291) | 14,048 | 13,490 |
Inventories (Note 2) | 8,678 | 8,765 |
Prepaid expenses and other | 2,896 | 2,537 |
Assets held for sale (Note 10) | 2,208 | 0 |
Total current assets | 47,194 | 43,088 |
Property, plant and equipment at cost | 41,520 | 41,466 |
Less: accumulated depreciation | (24,891) | (24,461) |
Property, plant and equipment, net | 16,629 | 17,005 |
Intangible assets, net (Note 3) | 48,637 | 53,228 |
Goodwill (Note 3) | 30,702 | 31,906 |
Deferred taxes on income | 8,076 | 7,105 |
Other assets | 4,465 | 4,971 |
Total assets | 155,703 | 157,303 |
Current liabilities: | ||
Loans and notes payable | 1,773 | 3,906 |
Accounts payable | 7,000 | 7,310 |
Accrued liabilities | 6,044 | 7,304 |
Accrued rebates, returns and promotions | 8,684 | 7,210 |
Accrued compensation and employee related obligations | 2,840 | 2,953 |
Accrued taxes on income | 1,096 | 1,854 |
Total current liabilities | 27,437 | 30,537 |
Long-term debt (Note 4) | 29,480 | 30,675 |
Deferred taxes on income | 7,711 | 8,368 |
Employee related obligations | 9,374 | 10,074 |
Long-term taxes payable | 8,537 | 8,472 |
Other liabilities | 8,538 | 9,017 |
Total liabilities | 91,077 | 97,143 |
Shareholders’ equity: | ||
Common stock — par value $1.00 per share (authorized 4,320,000,000 shares; issued 3,119,843,000 shares) | 3,120 | 3,120 |
Accumulated other comprehensive income (loss) (Note 7) | (14,647) | (13,199) |
Retained earnings | 107,617 | 101,793 |
Less: common stock held in treasury, at cost (436,688,000 and 437,318,000 shares) | 31,464 | 31,554 |
Total shareholders’ equity | 64,626 | 60,160 |
Total liabilities and shareholders' equity | $ 155,703 | $ 157,303 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Allowances for doubtful accounts | $ 281 | $ 291 |
Shareholders' equity: | ||
Common stock, par value per share | $ 1 | $ 1 |
Common stock, shares authorized | 4,320,000,000 | 4,320,000,000 |
Common stock, shares issued | 3,119,843,000 | 3,119,843,000 |
Treasury stock, shares | 436,688,000 | 437,318,000 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Oct. 01, 2017 | Sep. 30, 2018 | Oct. 01, 2017 | |
Income Statement [Abstract] | ||||
Sales to customers (Note 9) | $ 20,348 | $ 19,650 | $ 61,187 | $ 56,255 |
Sales to customers percent to sales | 100.00% | 100.00% | 100.00% | 100.00% |
Cost of products sold | $ 6,589 | $ 6,925 | $ 20,130 | $ 18,180 |
Cost of products sold percent to sales | 32.40% | 35.20% | 32.90% | 32.30% |
Gross profit | $ 13,759 | $ 12,725 | $ 41,057 | $ 38,075 |
Gross profit percent to sales | 67.60% | 64.80% | 67.10% | 67.70% |
Selling, marketing and administrative expenses | $ 5,543 | $ 5,423 | $ 16,549 | $ 15,475 |
Selling marketing and administrative expenses percent to sales | 27.30% | 27.60% | 27.10% | 27.50% |
Research and development expense | $ 2,508 | $ 2,585 | $ 7,551 | $ 6,951 |
Research and development expense percent to sales | 12.30% | 13.20% | 12.30% | 12.40% |
In-process research and development | $ 1,126 | $ 0 | $ 1,126 | $ 0 |
In-process research and development percent to sales | 5.60% | 0.00% | 1.80% | 0.00% |
Interest income | $ (175) | $ (74) | $ (415) | $ (300) |
Interest income percent to sales | (0.90%) | (0.40%) | (0.60%) | (0.50%) |
Interest expense, net of portion capitalized | $ 243 | $ 229 | $ 755 | $ 660 |
Interest expense, net of portion capitalized percent to sales | 1.20% | 1.20% | 1.20% | 1.10% |
Other (income) expense, net | $ 3 | $ (297) | $ 427 | $ 11 |
Other (income) expense, net percent to sales | 0.00% | (1.50%) | 0.70% | 0.00% |
Restructuring (Note 12) | $ 88 | $ 69 | $ 187 | $ 165 |
Restructuring charge percent to sales | 0.40% | 0.30% | 0.30% | 0.30% |
Earnings before provision for taxes on income | $ 4,423 | $ 4,790 | $ 14,877 | $ 15,113 |
Earnings before provision for taxes on income percent to sales | 21.70% | 24.40% | 24.30% | 26.90% |
Provision for taxes on income (Note 5) | $ 489 | $ 1,026 | $ 2,622 | $ 3,100 |
Provision for taxes on income perent to sales | 2.40% | 5.20% | 4.30% | 5.50% |
NET EARNINGS | $ 3,934 | $ 3,764 | $ 12,255 | $ 12,013 |
Net earnings percent to sales | 19.30% | 19.20% | 20.00% | 21.40% |
NET EARNINGS PER SHARE (Note 8) | ||||
Basic (per share) | $ 1.47 | $ 1.40 | $ 4.57 | $ 4.46 |
Diluted (per share) | 1.44 | 1.37 | 4.49 | 4.37 |
CASH DIVIDENDS PER SHARE | $ 0.90 | $ 0.84 | $ 2.64 | $ 2.48 |
AVG. SHARES OUTSTANDING | ||||
Basic (shares) | 2,683.2 | 2,684.6 | 2,682.6 | 2,694.4 |
Diluted (shares) | 2,727.6 | 2,737.7 | 2,729.6 | 2,746.4 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Oct. 01, 2017 | Sep. 30, 2018 | Oct. 01, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 3,934 | $ 3,764 | $ 12,255 | $ 12,013 |
Other comprehensive income (loss), net of tax | ||||
Foreign currency translation | (151) | 359 | (1,718) | 1,597 |
Securities:(1) | ||||
Unrealized holding gain (loss) arising during period | 0 | 14 | 0 | 150 |
Reclassifications to earnings | (1) | (99) | (1) | (292) |
Net change | (1) | (85) | (1) | (142) |
Employee benefit plans: | ||||
Prior service cost amortization during period | (6) | (4) | (17) | (13) |
Gain (loss) amortization during period | 192 | 124 | 574 | 370 |
Net change | 186 | 120 | 557 | 357 |
Derivatives & hedges: | ||||
Unrealized gain (loss) arising during period | 262 | 62 | 37 | (8) |
Reclassifications to earnings | (166) | 31 | (91) | 350 |
Net change | 96 | 93 | (54) | 342 |
Other comprehensive income (loss) | 130 | 487 | (1,216) | 2,154 |
Comprehensive income | $ 4,064 | $ 4,251 | $ 11,039 | $ 14,167 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Oct. 01, 2017 | Sep. 30, 2018 | Oct. 01, 2017 | |
Consolidated Statement of Comprehensive Income [Abstract] | ||||
Foreign Currency Translation | $ 104 | $ (79) | ||
Securities | 0 | $ (45) | 0 | $ (76) |
Employee Benefits | (52) | (61) | (155) | (181) |
Derivatives & Hedges | $ 26 | $ 50 | $ (14) | $ 184 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Oct. 01, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net earnings | $ 12,255 | $ 12,013 |
Adjustments to reconcile net earnings to cash flows from operating activities: | ||
Depreciation and amortization of property and intangibles | 5,194 | 3,773 |
Stock based compensation | 822 | 758 |
Asset write-downs | 1,226 | 309 |
Net gain on sale of assets/businesses | (443) | (527) |
Deferred tax provision | 53 | (407) |
Accounts receivable allowances | (3) | 59 |
Changes in assets and liabilities, net of effects from acquisitions and divestitures: | ||
Increase in accounts receivable | (1,040) | (300) |
Increase in inventories | (777) | (193) |
Increase in accounts payable and accrued liabilities | 731 | 339 |
Increase in other current and non-current assets | (904) | (555) |
Decrease in other current and non-current liabilities | (1,157) | (318) |
NET CASH FLOWS FROM OPERATING ACTIVITIES | 15,957 | 14,951 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Additions to property, plant and equipment | (2,352) | (2,039) |
Proceeds from the disposal of assets/businesses, net | 895 | 726 |
Acquisitions, net of cash acquired | (897) | (34,646) |
Purchases of investments | (4,155) | (5,798) |
Sales of investments | 1,162 | 27,511 |
Other | (48) | (117) |
NET CASH USED BY INVESTING ACTIVITIES | (5,395) | (14,363) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Dividends to shareholders | (7,083) | (6,687) |
Repurchase of common stock | (2,060) | (5,543) |
Proceeds from short-term debt | 40 | 4,760 |
Retirement of short-term debt | (2,365) | (936) |
Proceeds from long-term debt, net of issuance costs | 6 | 4,465 |
Retirement of long-term debt | (910) | (1,024) |
Proceeds from the exercise of stock options/employee withholding tax on stock awards, net | 480 | 854 |
Other | (229) | (25) |
NET CASH USED BY FINANCING ACTIVITIES | (12,121) | (4,136) |
Effect of exchange rate changes on cash and cash equivalents | (209) | 297 |
Decrease in cash and cash equivalents | (1,768) | (3,251) |
Cash and Cash equivalents, beginning of period | 17,824 | 18,972 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 16,056 | 15,721 |
Acquisitions | ||
Fair value of assets acquired | 1,046 | 36,494 |
Fair value of liabilities assumed and noncontrolling interests | (149) | (1,848) |
Net cash paid for acquisitions | $ 897 | $ 34,646 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | The accompanying unaudited interim consolidated financial statements and related notes should be read in conjunction with the audited Consolidated Financial Statements of Johnson & Johnson and its subsidiaries (the Company) and related notes as contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017 . The unaudited interim financial statements include all adjustments (consisting only of normal recurring adjustments) and accruals necessary in the judgment of management for a fair statement of the results for the periods presented. New Accounting Standards Recently Adopted Accounting Standards ASU 2017-12 : Targeted Improvements to Accounting for Hedging Activities The Company elected to early adopt this standard as of the beginning of the fiscal second quarter of 2018. This update makes more financial and nonfinancial hedging strategies eligible for hedge accounting. It also amends the presentation and disclosure requirements and changes how companies assess effectiveness. The adoption of this standard did not have a material impact on the Company's consolidated financial statements. For additional required disclosures see Note 4 to the Consolidated Financial Statements. ASU 2014-09 : Revenue from Contracts with Customers On January 1, 2018, the Company adopted the new accounting standard, ASC 606, Revenue from Contracts with Customers and all the related amendments (new revenue standard) to all contracts using the modified retrospective method. The cumulative effect of initially applying the new standard was recognized as an adjustment to the opening balance of retained earnings. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The adoption of the new revenue standard has not had a material impact to either reported Sales to customers or Net earnings. Additionally, the Company will continue to recognize revenue from product sales as goods are shipped or delivered to the customer, as control of goods transfers at the same time. In accordance with the new standard requirements, the disclosure of the impact of adoption on the Company's Consolidated Statement of Earnings and Balance Sheet was as follows: Statement of Earnings - For the fiscal nine months ended September 30, 2018 (Dollars in millions) As Reported Effect of change Balance without adoption of ASC 606 Sales to customers $ 61,187 (18 ) 61,169 Net earnings 12,255 (14 ) 12,241 Statement of Earnings - For the fiscal third quarter ended September 30, 2018 (Dollars in millions) As Reported Effect of change Balance without adoption of ASC 606 Sales to customers $ 20,348 22 20,370 Net earnings 3,934 19 3,953 Balance Sheet - As of September 30, 2018 As Reported Effect of change Balance without adoption of ASC 606 Assets 155,703 24 155,727 Liabilities 91,077 (7 ) 91,070 Equity $ 64,626 31 64,657 The Company made a cumulative effect adjustment to the 2018 opening balance of retained earnings upon adoption of ASU 2014-09, which decreased beginning retained earnings by $47 million . As part of the adoption of ASC 606 see Note 9 to the Consolidated Financial Statements for further disaggregation of revenue. The Company recognizes revenue from product sales when obligations under the terms of a contract with the customer are satisfied; generally, this occurs with the transfer of control of the goods to customers. The Company's global payment terms are typically between 30 to 90 days. Provisions for certain rebates, sales incentives, trade promotions, coupons, product returns and discounts to customers are accounted as variable consideration and recorded as a reduction in sales. Product discounts granted are based on the terms of arrangements with direct, indirect and other market participants, as well as market conditions, including prices charged by competitors. Rebates are estimated based on contractual terms, historical experience, patient outcomes, trend analysis and projected market conditions in the various markets served. The Company evaluates market conditions for products or groups of products primarily through the analysis of wholesaler and other third-party sell-through and market research data, as well as internally generated information. Sales returns are estimated and recorded based on historical sales and returns information. Products that exhibit unusual sales or return patterns due to dating, competition or other marketing matters are specifically investigated and analyzed as part of the accounting for sales return accruals. Sales returns allowances represent a reserve for products that may be returned due to expiration, destruction in the field, or in specific areas, product recall. The sales returns reserve is based on historical return trends by product and by market as a percent to gross sales. In accordance with the Company’s accounting policies, the Company generally issues credit to customers for returned goods. The Company’s sales returns reserves are accounted for in accordance with the U.S. GAAP guidance for revenue recognition when right of return exists. Sales returns reserves are recorded at full sales value. Sales returns in the Consumer and Pharmaceutical segments are almost exclusively not resalable. Sales returns for certain franchises in the Medical Devices segment are typically resalable but are not material. The Company infrequently exchanges products from inventory for returned products. The sales returns reserve for the total Company has been approximately 1.0% of annual net trade sales during the fiscal reporting years 2017, 2016 and 2015. Promotional programs, such as product listing allowances and cooperative advertising arrangements, are recorded in the same period as related sales. Continuing promotional programs include coupons and volume-based sales incentive programs. The redemption cost of consumer coupons is based on historical redemption experience by product and value. Volume-based incentive programs are based on the estimated sales volumes for the incentive period and are recorded as products are sold. These arrangements are evaluated to determine the appropriate amounts to be deferred or recorded as a reduction of revenue. The Company also earns service revenue for co-promotion of certain products, which is included in sales to customers. ASU 2016-01 : Financial Instruments: Recognition and Measurement of Financial Assets and Financial Liabilities The Company adopted this standard as of the beginning of the fiscal year 2018 on a modified retrospective basis. The amendments in this update supersede the guidance to classify equity securities with readily determinable fair values into different categories (that is, trading or available-for-sale) and require equity securities to be measured at fair value with changes in the fair value recognized through net earnings. The standard amends financial reporting by providing relevant information about an entity’s equity investments and reducing the number of items that are recognized in other comprehensive income. The Company made a cumulative effect adjustment to the opening balance of retained earnings upon adoption of ASU 2016-01 that increased retained earnings by $232 million net of tax and decreased accumulated other comprehensive income for previously unrealized gains from equity investments. For additional details see Note 4 to the Consolidated Financial Statements. ASU 2016-16 : Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory The Company adopted this standard as of the beginning of the fiscal year 2018. This update removes the current exception in U.S. GAAP prohibiting entities from recognizing current and deferred income tax expenses or benefits related to transfer of assets, other than inventory, within the consolidated entity. The current exception to defer the recognition of any tax impact on the transfer of inventory within the consolidated entity until it is sold to a third party remains unaffected. The Company recorded net adjustments to deferred taxes of approximately $2.0 billion , a decrease to Other Assets of approximately $0.7 billion and an increase to retained earnings of approximately $1.3 billion . The adoption of this standard did not have a material impact on the Company's consolidated financial statements. ASU 2017-01 : Clarifying the Definition of a Business The Company adopted this standard as of the beginning of the fiscal year 2018. This update narrows the definition of a business by providing a screen to determine when an integrated set of assets and activities is not a business. The screen specifies that an integrated set of assets and activities is not a business if substantially all of the fair value of the gross assets acquired or disposed of is concentrated in a single or a group of similar identifiable assets. This update was applied prospectively. The adoption of this standard did not have a material impact on the Company's consolidated financial statements. ASU 2017-07 : Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost The Company adopted this standard as of the beginning of the fiscal year 2018. This update requires that an employer disaggregate the service cost component from the other components of net periodic benefit cost (NPBC). In addition, only the service cost component will be eligible for capitalization. The amendments in this update are required to be applied retrospectively for the presentation of the service cost component and the other components of NPBC in the Consolidated Statement of Earnings and prospectively, on and after the adoption date, for the capitalization of the service cost component of NPBC in assets. As required by the transition provisions of this update, the Company made the following reclassifications to the 2017 fiscal third quarter and fiscal nine months Consolidated Statement of Earnings to retroactively apply classification of the service cost component and the other components of NPBC: (Dollars In millions) Increase (Decrease) to Net Expense Fiscal Third Quarter Ended Fiscal Nine Months Ended Cost of products sold $ 23 69 Selling, marketing and administrative expenses 27 80 Research and development expense 11 32 Other (income) expense, net (61 ) (181 ) Earnings before provision for taxes on income $ — — The following table summarizes the cumulative effect adjustments made to the 2018 opening balance of retained earnings upon adoption of the new accounting standards mentioned above: (Dollars in Millions) Cumulative Effect Adjustment Increase (Decrease) to Retained Earnings ASU 2014-09 - Revenue from Contracts with Customers $ (47 ) ASU 2016-01 - Financial Instruments 232 ASU 2016-16 - Income Taxes: Intra-Entity Transfers 1,311 Total $ 1,496 Recently Issued Accounting Standards Not Adopted as of September 30, 2018 ASU 2018-02 : Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income This update allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Job Act enacted in December 2017. This update will be effective for the Company for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted. The Company does not expect this standard to have a material impact on the Company's consolidated financial statements. ASU 2016-02 : Leases This update requires the recognition of lease assets and lease liabilities on the balance sheet for all lease obligations and disclosing key information about leasing arrangements. This update requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under current generally accepted accounting principles. This update will be effective for the Company for all annual periods beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. The Company will apply the new standard at its adoption date rather than at the earliest comparative period presented in the financial statements. The Company anticipates that most of its operating leases will result in the recognition of additional assets and the corresponding liabilities on its Consolidated Balance Sheets, however it does not expect the standard to have a material impact on the financial position. The actual impact will depend on the Company's lease portfolio at the time of adoption. The Company continues to assess all implications of the standard and related financial disclosures. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES (Dollars in Millions) September 30, 2018 December 31, 2017 Raw materials and supplies $ 1,202 1,140 Goods in process 1,986 2,317 Finished goods 5,490 5,308 Total inventories (1) $ 8,678 8,765 (1) Net of assets held for sale on the Consolidated Balance Sheet for approximately $0.1 billion related to the divestiture of the LifeScan business, $0.2 billion related to the divestiture of the Advanced Sterilization Products business and $0.3 billion related to the strategic collaboration with Jabil Inc., all of which were pending as of September 30, 2018. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | INTANGIBLE ASSETS AND GOODWILL Intangible assets that have finite useful lives are amortized over their estimated useful lives. The latest annual impairment assessment of goodwill and indefinite lived intangible assets was completed in the fiscal fourth quarter of 2017 . Future impairment tests for goodwill and indefinite lived intangible assets will be performed annually in the fiscal fourth quarter, or sooner, if warranted. (Dollars in Millions) September 30, 2018 December 31, 2017 Intangible assets with definite lives: Patents and trademarks — gross $ 35,478 36,427 Less accumulated amortization 9,077 7,223 Patents and trademarks — net (1) 26,401 29,204 Customer relationships and other intangibles — gross 21,176 20,204 Less accumulated amortization 8,168 7,463 Customer relationships and other intangibles — net 13,008 12,741 Intangible assets with indefinite lives: Trademarks 7,002 7,082 Purchased in-process research and development (2) 2,226 4,201 Total intangible assets with indefinite lives 9,228 11,283 Total intangible assets — net $ 48,637 53,228 (1) Net of approximately $0.1 billion classified as assets held for sale on the Consolidated Balance Sheet related to the divestiture of the LifeScan business, which was pending as of September 30, 2018. See Note 10 to the Consolidated Financial Statements for additional details (2) The decrease was primarily attributable to the write-down of $1.1 billion related to the assets acquired in the acquisitions of Alios Biopharma Inc. (Alios) and XO1 Limited (XO1). Of the $1.1 billion , the Company recorded a partial impairment charge of $0.8 billion related to the development program of AL-8176, an investigational drug for the treatment of Respiratory Syncytial Virus (RSV) and human metapneumovirus (hMPV) acquired with the 2014 acquisition of Alios. The impairment charge was calculated based on updated cash flow projections discounted for the inherent risk in the asset development and reflects the impact of recent phase 2b clinical trial suspension, a decrease in the probability of success factors and the ongoing analysis of asset development activities. In addition, an impairment charge of $0.3 billion was recorded for the discontinuation of the development project for an anti-thrombin antibody associated with the 2015 acquisition of XO1. Goodwill as of September 30, 2018 was allocated by segment of business as follows: (Dollars in Millions) Consumer Pharm Med Devices Total Goodwill, net at December 31, 2017 $ 8,875 9,109 13,922 31,906 Goodwill, related to acquisitions 169 51 208 428 Goodwill, related to divestitures — — (1,246 ) (1) (1,246 ) Currency translation/Other (304 ) (48 ) (34 ) (386 ) Goodwill, net at September 30, 2018 $ 8,740 9,112 12,850 30,702 (1) Goodwill of $1.0 billion is related to the divestiture of the LifeScan business and $0.2 billion is related to the divestiture of the Advanced Sterilization Products business, both of which were pending and classified as assets held for sale on the Consolidated Balance Sheet as of September 30, 2018. The weighted average amortization periods for patents and trademarks and customer relationships and other intangible assets are 11 years and 22 years, respectively. The amortization expense of amortizable intangible assets included in cost of products sold was $3.3 billion and $1.9 billion for the fiscal nine months ended September 30, 2018 and October 1, 2017 , respectively. The estimated amortization expense for the five succeeding years approximates $4.4 billion , before tax, per year. Intangible asset write-downs, other than in-process research and development are included in Other (income) expense, net. See Note 10 to the Consolidated Financial Statements for additional details related to acquisitions and divestitures. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS The Company uses forward foreign exchange contracts to manage its exposure to the variability of cash flows, primarily related to the foreign exchange rate changes of future intercompany product and third-party purchases of materials denominated in a foreign currency. The Company uses cross currency interest rate swaps to manage currency risk primarily related to borrowings. The Company also uses equity collar contracts to manage exposure to market risk associated with certain equity investments. All three types of derivatives are designated as cash flow hedges. The Company uses interest rate swaps as an instrument to manage interest rate risk related to fixed rate borrowings. These derivatives are designated as fair value hedges. The Company uses cross currency interest rate swaps and forward foreign exchange contracts designated as net investment hedges. Additionally, the Company uses forward foreign exchange contracts to offset its exposure to certain foreign currency assets and liabilities. These forward foreign exchange contracts are not designated as hedges, and therefore, changes in the fair values of these derivatives are recognized in earnings, thereby offsetting the current earnings effect of the related foreign currency assets and liabilities. The Company early adopted ASU 2017-12: Targeted Improvements to Accounting for Hedge Activities effective as of the beginning of fiscal second quarter of 2018. The Company does not enter into derivative financial instruments for trading or speculative purposes, or that contain credit risk related contingent features. During the fiscal second quarter of 2017, the Company entered into credit support agreements (CSA) with certain derivative counterparties establishing collateral thresholds based on respective credit ratings and netting agreements. As of September 30, 2018 , the total amount of collateral paid under the credit support agreements amounted to $153 million , net. For equity collar contracts, the Company pledged the underlying hedged marketable equity securities to the counter-party as collateral. On an ongoing basis, the Company monitors counter-party credit ratings. The Company considers credit non-performance risk to be low, because the Company primarily enters into agreements with commercial institutions that have at least an investment grade credit rating. Refer to the table on significant financial assets and liabilities measured at fair value contained in this footnote for receivables and payables with these commercial institutions. As of September 30, 2018 , the Company had notional amounts outstanding for forward foreign exchange contracts, cross currency interest rate swaps and interest rate swaps of $38.8 billion , $7.3 billion and $1.1 billion , respectively. As of December 31, 2017, the Company had notional amounts outstanding for forward foreign exchange contracts, cross currency interest rate swaps and interest rate swaps of $34.5 billion , $2.3 billion and $1.1 billion , respectively. All derivative instruments are recorded on the balance sheet at fair value. Changes in the fair value of derivatives are recorded each period in current earnings or other comprehensive income, depending on whether the derivative is designated as part of a hedge transaction, and if so, the type of hedge transaction. The designation as a cash flow hedge is made at the entrance date of the derivative contract. At inception, all derivatives are expected to be highly effective. Changes in the fair value of a derivative that is designated as a cash flow hedge and is highly effective are recorded in accumulated other comprehensive income until the underlying transaction affects earnings and are then reclassified to earnings in the same account as the hedged transaction. Gains and losses associated with interest rate swaps and changes in fair value of hedged debt attributable to changes in interest rates are recorded to interest expense in the period in which they occur. Gains and losses on net investment hedges are accounted for through the currency translation account. On an ongoing basis, the Company assesses whether each derivative continues to be highly effective in offsetting changes of hedged items. If a derivative is no longer expected to be highly effective, hedge accounting is discontinued. During the fiscal second quarter of 2016, the Company designated its Euro denominated notes issued in May 2016 with due dates ranging from 2022 to 2035 as a net investment hedge of the Company's investments in certain of its international subsidiaries that use the Euro as their functional currency in order to reduce the volatility caused by changes in exchange rates. As of September 30, 2018 , the balance of deferred net gain on derivatives included in accumulated other comprehensive income was $16 million after-tax. For additional information, see the Consolidated Statements of Comprehensive Income and Note 7. The Company expects that substantially all of the amounts related to forward foreign exchange contracts will be reclassified into earnings over the next 12 months as a result of transactions that are expected to occur over that period. The maximum length of time over which the Company is hedging transaction exposure is 18 months , excluding interest rate contracts, net investment hedges and equity collar contracts. The amount ultimately realized in earnings may differ as foreign exchange rates change. Realized gains and losses are ultimately determined by actual exchange rates at maturity of the derivative. The following table is a summary of the activity related to derivatives and hedges for the fiscal third quarters in 2018 and 2017 : September 30, 2018 October 1, 2017 (Dollars in Millions) Sales Cost of Products Sold R&D Expense Interest (Income) Expense Other (Income) Expense Sales Cost of Products Sold R&D Expense Interest (Income) Expense Other (Income) Expense The effects of fair value, net investment and cash flow hedging: Gain (Loss) on fair value hedging relationship: Interest rate swaps contracts: Hedged items $ — — — (7 ) — — — — (4 ) — Derivatives designated as hedging instruments — — — 7 — — — — 4 — Gain (Loss) on net investment hedging relationship: Cross currency interest rate swaps contracts: Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing — — — 25 — — — — — — Amount of gain or (loss) recognized in AOCI — — — 25 — — — — — — Gain (Loss) on cash flow hedging relationship: Forward foreign exchange contracts: Amount of gain or (loss) reclassified from AOCI into income (1) 4 97 10 — (3 ) 5 (63 ) (30 ) — (49 ) Amount of gain or (loss) recognized in AOCI (1) 15 192 (4 ) — (1 ) 18 (16 ) (39 ) — (15 ) Cross currency interest rate swaps contracts: Amount of gain or (loss) reclassified from AOCI into income — — — 34 — — — 106 — Amount of gain or (loss) recognized in AOCI $ — — — 35 — — — — 114 — The following table is a summary of the activity related to derivatives and hedges for the fiscal nine months in 2018 and 2017 : September 30, 2018 October 1, 2017 (Dollars in Millions) Sales Cost of Products Sold R&D Expense Interest (Income) Expense Other (Income) Expense Sales Cost of Products Sold R&D Expense Interest (Income) Expense Other (Income) Expense The effects of fair value, net investment and cash flow hedging: Gain (Loss) on fair value hedging relationship: Interest rate swaps contracts: Hedged items $ — — — 3 — — — — (6 ) — Derivatives designated as hedging instruments — — — (3 ) — — — — 6 — Gain (Loss) on net investment hedging relationship: Cross currency interest rate swaps contracts: Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing — — — 27 — — — — — — Amount of gain or (loss) recognized in AOCI — — — 27 — — — — — — Gain (Loss) on cash flow hedging relationship: Forward foreign exchange contracts: Amount of gain or (loss) reclassified from AOCI into income (1) 50 175 (242 ) — (24 ) (34 ) (162 ) (131 ) — (86 ) Amount of gain or (loss) recognized in AOCI (1) (3 ) 138 (220 ) — (16 ) 40 105 (167 ) — (59 ) Cross currency interest rate swaps contracts: Amount of gain or (loss) reclassified from AOCI into income — — — 106 — — — — 63 — Amount of gain or (loss) recognized in AOCI $ — — — 111 — — — — 73 — (1) Includes equity collar contracts. The equity collar contracts expired in December of 2017. As of September 30, 2018 and December 31, 2017, the following amounts were recorded on the Consolidated Balance Sheet related to cumulative basis adjustment for fair value hedges: Line item in the Consolidated Balance Sheet in which the hedged item is included Carrying Amount of the Hedged Liability Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liability (Dollars in Millions) September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 Current Portion of Long-term Debt $ 601 597 1 2 Long-term Debt 495 496 (4 ) 3 The following table is the effect of derivatives not designated as hedging instrument for the fiscal third quarters and fiscal nine months in 2018 and 2017: Gain/(Loss) Recognized In Income on Derivative Gain/(Loss) Recognized In Income on Derivative (Dollars in Millions) Location of Gain /(Loss) Recognized in Income on Derivative Fiscal Third Quarters Ended Fiscal Nine Months Ended Derivatives Not Designated as Hedging Instruments September 30, 2018 October 1, 2017 September 30, 2018 October 1, 2017 Foreign Exchange Contracts Other (income) expense $ 49 (12 ) (23 ) 22 The following table is the effect of net investment hedges for the fiscal third quarters in 2018 and 2017: Gain/(Loss) Recognized In Accumulated OCI Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income Into Income Gain/(Loss) Reclassified From Accumulated OCI Into Income (Dollars in Millions) Fiscal Third Quarters Ended September 30, 2018 October 1, 2017 September 30, 2018 October 1, 2017 Debt $ (50 ) (151 ) Other (income) expense — — Cross Currency interest rate swaps $ (75 ) — Other (income) expense — — The following table is the effect of net investment hedges for the fiscal nine months in 2018 and 2017: Gain/(Loss) Recognized In Accumulated OCI Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income Into Income Gain/(Loss) Reclassified From Accumulated OCI Into Income (Dollars in Millions) Fiscal Nine Months Ended September 30, 2018 October 1, 2017 September 30, 2018 October 1, 2017 Debt $ 106 (529 ) Other (income) expense — — Cross Currency interest rate swaps $ (37 ) — Other (income) expense — — The Company adopted ASU 2016-01: Financial Instruments: Recognition and Measurement of Financial Assets and Financial Liabilities as of the beginning of the fiscal year 2018. This ASU amends prior guidance to classify equity investments with readily determinable market values into different categories (that is, trading or available-for-sale) and require equity investments to be measured at fair value with changes in fair value recognized through net earnings. The Company made a cumulative effect adjustment to the opening balance of retained earnings upon adoption of ASU 2016-01 which increased retained earnings by $232 million , net of tax, and decreased accumulated other comprehensive income for previously net unrealized gains from equity investments. The Company holds equity investments with readily determinable fair values and equity investments without readily determinable fair values. The Company has elected to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The following table is a summary of the activity related to equity investments as of September 30, 2018 : (Dollars in Millions) December 31, 2017 September 30, 2018 Carrying Value Changes in Fair Value Reflected in Net Income (1) Sales/ Purchases/Other (2) Carrying Value Non Current Other Assets Equity Investments with readily determinable value $ 751 (35 ) (19 ) 697 697 Equity Investments without readily determinable value $ 510 7 122 639 639 (1) Recorded in Other Income/Expense (2) Other includes impact of currency For equity investments without readily determinable market values, $31 million of the changes in fair value reflected in net income were the result of impairments. There were $38 million of changes in fair value reflected in net income due to changes in observable prices. For the fiscal nine months ended October 1, 2017 , changes in fair value reflected within other comprehensive income due to previously unrealized gains on equity investments with readily determinable fair values net of tax was a net gain of $269 million . Fair value is the exit price that would be received to sell an asset or paid to transfer a liability. Fair value is a market-based measurement determined using assumptions that market participants would use in pricing an asset or liability. The authoritative literature establishes a three-level hierarchy to prioritize the inputs used in measuring fair value. The levels within the hierarchy are described below with Level 1 inputs having the highest priority and Level 3 inputs having the lowest. The fair value of a derivative financial instrument (i.e., forward foreign exchange contracts, interest rate contracts) is the aggregation by currency of all future cash flows discounted to its present value at the prevailing market interest rates and subsequently converted to the U.S. Dollar at the current spot foreign exchange rate. The Company does not believe that fair values of these derivative instruments materially differ from the amounts that could be realized upon settlement or maturity, or that the changes in fair value will have a material effect on the Company’s results of operations, cash flows or financial position. The Company also holds equity investments which are classified as Level 1 and debt securities which are classified as Level 2. The Company did not have any other significant financial assets or liabilities which would require revised valuations under this standard that are recognized at fair value. The following three levels of inputs are used to measure fair value: Level 1 — Quoted prices in active markets for identical assets and liabilities. Level 2 — Significant other observable inputs. Level 3 — Significant unobservable inputs. The Company’s significant financial assets and liabilities measured at fair value as of September 30, 2018 and December 31, 2017 were as follows: September 30, 2018 December 31, 2017 (Dollars in Millions) Level 1 Level 2 Level 3 Total Total (1) Derivatives designated as hedging instruments: Assets: Forward foreign exchange contracts $ — 551 — 551 418 Interest rate contracts (2)(4) — 19 — 19 7 Total — 570 — 570 425 Liabilities: Forward foreign exchange contracts — 401 — 401 402 Interest rate contracts (3)(4) — 269 — 269 165 Total — 670 — 670 567 Derivatives not designated as hedging instruments: Assets: Forward foreign exchange contracts — 28 — 28 38 Liabilities: Forward foreign exchange contracts — 45 — 45 38 Other Investments: Equity investments (5) 697 — — 697 751 Debt securities (6) $ — 11,155 — 11,155 5,310 Gross to Net Derivative Reconciliation September 30, 2018 December 31, 2017 (Dollars in Millions) Total Gross Assets $ 598 463 Credit Support Agreement (CSA) (290 ) (76 ) Total Net Asset 308 387 Total Gross Liabilities 715 605 Credit Support Agreement (CSA) (443 ) (238 ) Total Net Liabilities $ 272 367 (1) 2017 assets and liabilities are all classified as Level 2 with the exception of equity investments of $751 million , which are classified as Level 1. (2) Includes $4 million and $7 million of non-current other assets for September 30, 2018 and December 31, 2017 , respectively. (3) Includes $6 million and $9 million of non-current other liabilities for September 30, 2018 and December 31, 2017 , respectively. (4) Includes cross currency interest rate swaps and interest rate swaps. (5) Classified as non-current other assets. The carrying amount of the equity investments were $697 million and $751 million as of September 30, 2018 and December 31, 2017 , respectively. (6) Classified as cash equivalents and current marketable securities. The Company's cash, cash equivalents and current marketable securities as of September 30, 2018 comprised: September 30, 2018 (Dollars in Millions) Carrying Amount Unrecognized Gain Unrecognized Loss Estimated Fair Value Cash & Cash Equivalents Current Marketable Securities Cash $ 2,575 — — 2,575 2,575 Other sovereign securities (1) — — — — — U.S. reverse repurchase agreements 2,260 — — 2,260 2,260 Other reverse repurchase agreements 479 — — 479 479 Corporate debt securities (1) 200 — — 200 200 — Money market funds 1,763 — — 1,763 1,763 Time deposits (1) 932 — — 932 932 Subtotal 8,209 — — 8,209 8,209 — Unrealized Gain Unrealized Loss Government securities 10,885 — (1 ) 10,884 7,835 3,049 Other sovereign securities — — — — — — Corporate debt securities 271 — — 271 12 259 Subtotal available for sale debt (2) $ 11,156 — (1 ) 11,155 7,847 3,308 Total cash, cash equivalents and current marketable securities 16,056 3,308 (1) Held to maturity investments are reported at amortized cost and gains or losses are reported in earnings. (2) Available for sale debt securities are reported at fair value with unrealized gains and losses reported net of taxes in other comprehensive income. Fair value of government securities and obligations and corporate debt securities was estimated using quoted broker prices and significant other observable inputs. The Company classifies all highly liquid investments with stated maturities of three months or less from date of purchase as cash equivalents and all highly liquid investments with stated maturities of greater than three months from the date of purchase as current marketable securities. Available for sale securities with stated maturities of greater than one year from the date of purchase are available for current operations and are classified as cash equivalents and current marketable securities. The contractual maturities of the available for sale securities at September 30, 2018 are as follows: (Dollars in Millions) Cost Basis Fair Value Due within one year $ 11,079 11,078 Due after one year through five years 77 77 Due after five years through ten years — — Total debt securities $ 11,156 11,155 Financial Instruments not measured at Fair Value: The following financial liabilities are held at carrying amount on the consolidated balance sheet as of September 30, 2018 : (Dollars in Millions) Carrying Amount Estimated Fair Value Financial Liabilities Current Debt $ 1,773 1,773 Non-Current Debt 4.75% Notes due 2019 (1B Euro 1.1681) 1,166 1,231 1.875% Notes due 2019 495 490 3% Zero Coupon Convertible Subordinated Debentures due in 2020 52 100 1.950% Notes due 2020 499 490 2.95% Debentures due 2020 548 551 3.55% Notes due 2021 448 454 2.45% Notes due 2021 349 345 1.65% Notes due 2021 998 967 0.250% Notes due 2022 (1B Euro 1.1681) 1,165 1,172 2.25% Notes due 2022 996 973 6.73% Debentures due 2023 250 291 3.375% Notes due 2023 805 829 2.05% Notes due 2023 498 477 0.650% Notes due 2024 (750MM Euro 1.1681) 872 881 5.50% Notes due 2024 (500 MM GBP 1.3123) 651 793 2.625% Notes due 2025 748 719 2.45% Notes due 2026 1,991 1,884 2.95% Notes due 2027 996 956 2.90% Notes due 2028 1,493 1,420 1.150% Notes due 2028 (750MM Euro 1.1681) 868 874 6.95% Notes due 2029 296 385 4.95% Debentures due 2033 498 559 4.375% Notes due 2033 856 912 1.650% Notes due 2035 (1.5B Euro 1.1681) 1,735 1,774 3.55% Notes due 2036 988 945 5.95% Notes due 2037 991 1,252 3.625% Notes due 2037 1,486 1,433 3.40% Notes due 2038 990 926 5.85% Debentures due 2038 696 874 4.50% Debentures due 2040 538 573 4.85% Notes due 2041 297 330 4.50% Notes due 2043 495 532 3.70% Notes due 2046 1,971 1,884 3.75% Notes due 2047 991 951 3.50% Notes due 2048 742 689 Other 22 22 Total Non-Current Debt $ 29,480 29,938 The weighted average effective interest rate on non-current debt is 3.20% . The excess of the estimated fair value over the carrying value of debt was $2.0 billion at December 31, 2017. Fair value of the non-current debt was estimated using market prices, which were corroborated by quoted broker prices and significant other observable inputs. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The worldwide effective income tax rates for the fiscal nine months of 2018 and 2017 were 17.6% and 20.5% , respectively. The U.S. Tax Cuts and Jobs Act (TCJA) was enacted into law effective January 1, 2018. This law reduces the U.S. statutory corporate tax rate from 35% to 21%, eliminates or reduces certain corporate income tax deductions and introduces a tax on global intangible low-taxed income (GILTI). In December 2017, the Company recorded a provisional tax cost of $13.0 billion related to the enactment of the TCJA. Under the guidance in SEC Staff Accounting Bulletin 118 (SAB 118), the provisional amount was a reasonable estimate based on the most recent information and guidance available related to the calculation of the tax liability and the impact to its deferred tax assets and liabilities, including those recorded for foreign local and withholding taxes as of the 2017 assessment date of January 18, 2018. As noted below, the Company has made adjustments through the third quarter of 2018. All amounts recorded remain provisional and may require further adjustments and changes to the Company’s estimates as new guidance is made available. The estimate is subject to the finalization of management’s analysis related to certain matters, such as developing interpretations of the provisions of the TCJA, changes to certain estimates and amounts related to the earnings and profits of certain subsidiaries and the filing of tax returns. Revisions to the provisional charge may be material to the Company's future financial results. See Note 8 to the Consolidated Financial Statements in the Annual Report on Form 10-K for the fiscal year ended December 31, 2017 for further details on the TCJA and SAB 118. The Company completed its acquisition of AMO in the first fiscal quarter of 2017, and incurred incremental tax costs that were discretely recorded in the first quarter of 2017, which had increased the effective tax rate by 1.4% for the first nine months of 2017 compared to the same period in 2018. Additionally, in 2018 the Company had more income in higher tax jurisdictions relative to lower tax jurisdictions as compared to 2017. Tax benefits received from stock-based compensation during the fiscal nine months of 2018 and 2017, reduced the effective tax rate by 1.2% and 2.1% , respectively. The reduction of the U.S. statutory corporate tax rate including the effects of tax elections which resulted in the acceleration of certain deductions into the 2017 tax return (1) , offset by the elimination of the corporate income tax deductions, measurement period adjustments (2) and the GILTI tax (3) , decreased the Company’s worldwide effective rate as compared to the same period of the prior year. As previously disclosed, the Company has elected to provisionally treat the GILTI tax as a period expense, pending further analysis by management of this new tax provision which will be completed in the fourth quarter of 2018. (1) The impact of the accelerations of these deductions on the effective tax rate through the fiscal nine months of 2018 was a decrease of approximately 2.0% . (2) The following adjustments were made to the provisional tax amounts through the fiscal third quarter of 2018 due to issued Treasury guidance and revisions to the Company’s estimates since the assessment date: • $0.1 billion increase to the transition tax on previously undistributed foreign earnings as of December 31, 2017 due to U.S. Treasury Department’s issuance of Notice 2018-13 on January 19, 2018, Notice 2018-26 on April 2, 2018, Notice 2018-78 on October 1, 2018 and updates to prior estimates • $0.3 billion decrease to the deferred tax liability for foreign withholding and local taxes, partially offset by a decrease of $0.2 billion in deferred tax assets for U.S. foreign tax credits due to updated estimates from the amounts recorded in 2017. These measurement period adjustments decreased the Company’s effective tax rate by approximately 0.4% through the first fiscal nine months of 2018 as compared to the same period of the prior year. (3) The impact of GILTI on the effective tax rate through the first fiscal nine months of 2018 was an increase of 2.5% . In 2017, the Company provisionally recorded the TCJA transition tax and foreign local and withholding taxes on substantially all of the Company’s foreign earnings. The Company has currently designated a portion of its 2018 foreign earnings as indefinitely reinvested in certain foreign jurisdictions and, as such, has not accrued for the impact of foreign local and withholding taxes in its financial results related to these earnings. The estimated impact of these taxes would have been an increase of approximately 2.5% to the year-to-date effective tax rate. As of September 30, 2018, the Company has no plans or intention to repatriate these designated earnings to the United States. However, the Company is continuing to evaluate its reinvestment plans based on the enacted provisions of the TCJA and related guidance issued to-date in 2018 by the U.S. Department of Treasury, specifically related to the eligibility of these earnings to utilize foreign tax credits. As further Treasury guidance is provided, the Company may re-evaluate its reinvestment plans and strategies for all of its foreign earnings. As of September 30, 2018 , the Company had approximately $3.2 billion of liabilities from unrecognized tax benefits. The Company believes it is possible that audits may be completed by tax authorities in some jurisdictions over the next twelve months. The Company is not able to provide a reasonably reliable estimate of the timing of any future tax payments relating to uncertain tax positions. The IRS has completed its audit for the tax years through 2009 and is currently auditing the tax years 2010 through 2012. The Company currently expects completion of this audit during 2019. Final conclusion of the tax audit may result in an outcome that is different than the Company’s estimates and may result in a material impact on the Company’s current and future operating results or cash flows in the period that the audit is concluded. |
Pensions and Other Benefit Plan
Pensions and Other Benefit Plans | 9 Months Ended |
Sep. 30, 2018 | |
Retirement Benefits [Abstract] | |
Pensions and Other Benefit Plans | PENSIONS AND OTHER BENEFIT PLANS Components of Net Periodic Benefit Cost Net periodic benefit cost for the Company’s defined benefit retirement plans and other benefit plans for the fiscal third quarters and fiscal nine months of 2018 and 2017 include the following components: Fiscal Third Quarters Ended Fiscal Nine Months Ended Retirement Plans Other Benefit Plans Retirement Plans Other Benefit Plans (Dollars in Millions) September 30, 2018 October 1, 2017 September 30, 2018 October 1, 2017 September 30, 2018 October 1, 2017 September 30, 2018 October 1, 2017 Service cost $ 307 266 67 62 925 772 202 185 Interest cost 247 232 37 40 748 693 112 119 Expected return on plan assets (550 ) (514 ) (1 ) (2 ) (1,664 ) (1,528 ) (5 ) (5 ) Amortization of prior service cost/(credit) 1 1 (7 ) (8 ) 2 2 (23 ) (23 ) Recognized actuarial losses 213 154 31 34 641 456 92 103 Curtailments and settlements — 2 — — (2 ) 1 — — Net periodic benefit cost $ 218 141 127 126 650 396 378 379 As per the adoption of ASU 2017-07, the service cost component of net periodic benefit cost was presented in the same line items on the Consolidated Statement of Earnings where other employee compensation costs are reported. All other components of net periodic benefit cost are presented as part of Other (income) expense, net on the Consolidated Statement of Earnings. Company Contributions For the fiscal nine months ended September 30, 2018 , the Company contributed $656 million and $28 million to its U.S. and international retirement plans, respectively. The Company plans to continue to fund its U.S. defined benefit plans to comply with the Pension Protection Act of 2006. International plans are funded in accordance with local regulations. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | ACCUMULATED OTHER COMPREHENSIVE INCOME Components of other comprehensive income (loss) consist of the following: Foreign Gain/(Loss) Employee Gain/(Loss) Total Accumulated Currency On Benefit On Derivatives Other Comprehensive (Dollars in Millions) Translation Securities Plans & Hedges Income (Loss) December 31, 2017 $ (7,351 ) 232 (6,150 ) 70 (13,199 ) Net change (1,718 ) (1 ) 557 (54 ) (1,216 ) Cumulative adjustment to retained earnings (232 ) (1) (232 ) September 30, 2018 $ (9,069 ) (1 ) (5,593 ) 16 (14,647 ) (1) See Note 1 to the Consolidated Financial Statements for additional details on the adoption of ASU 2016-01 Amounts in accumulated other comprehensive income are presented net of the related tax impact. Foreign currency translation is not adjusted for income taxes where it relates to permanent investments in international subsidiaries. For additional details on comprehensive income see the Consolidated Statements of Comprehensive Income. Details on reclassifications out of Accumulated Other Comprehensive Income: Gain/(Loss) On Securities - reclassifications released to Other (income) expense, net. Employee Benefit Plans - reclassifications are included in net periodic benefit cost. See Note 6 for additional details. Gain/(Loss) On Derivatives & Hedges - reclassifications to earnings are recorded in the same account as the underlying transaction. See Note 4 for additional details. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The following is a reconciliation of basic net earnings per share to diluted net earnings per share for the fiscal third quarters and fiscal nine months ended September 30, 2018 and October 1, 2017 : Fiscal Third Quarters Ended Fiscal Nine Months Ended (Shares in Millions) September 30, 2018 October 1, 2017 September 30, 2018 October 1, 2017 Basic net earnings per share $ 1.47 1.40 4.57 4.46 Average shares outstanding — basic 2,683.2 2,684.6 2,682.6 2,694.4 Potential shares exercisable under stock option plans 140.3 139.3 140.9 141.2 Less: shares which could be repurchased under treasury stock method (96.7 ) (87.2 ) (94.7 ) (90.2 ) Convertible debt shares 0.8 1.0 0.8 1.0 Average shares outstanding — diluted 2,727.6 2,737.7 2,729.6 2,746.4 Diluted net earnings per share $ 1.44 1.37 4.49 4.37 The diluted net earnings per share calculation for both the fiscal third quarters ended September 30, 2018 and October 1, 2017 included the dilutive effect of convertible debt that was offset by the related reduction in interest expense. The diluted net earnings per share calculation for the both the fiscal third quarters ended September 30, 2018 and October 1, 2017 included all shares related to stock options, as there were no options or other instruments which were anti-dilutive. The diluted net earnings per share calculation for both the fiscal nine months ended September 30, 2018 and October 1, 2017 included the dilutive effect of convertible debt that was offset by the related reduction in interest expense. The diluted net earnings per share calculation for both the fiscal nine months ended September 30, 2018 and October 1, 2017 included all shares related to stock options, as there were no options or other instruments which were anti-dilutive. |
Segments of Business and Geogra
Segments of Business and Geographic Areas | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segments of Business and Geographic Areas | SEGMENTS OF BUSINESS AND GEOGRAPHIC AREAS SALES BY SEGMENT OF BUSINESS Fiscal Third Quarters Ended Fiscal Nine Months Ended (Dollars in Millions) September 30, October 1, Percent Change September 30, October 1, Percent Change CONSUMER Baby Care U.S. $ 120 100 20.0 % $ 306 326 (6.1 )% International 352 377 (6.6 ) 1,079 1,100 (1.9 ) Worldwide 472 477 (1.0 ) 1,385 1,426 (2.9 ) Beauty U.S. 543 523 3.8 1,791 1,739 3.0 International 535 510 4.9 1,480 1,351 9.5 Worldwide 1,078 1,033 4.4 3,271 3,090 5.9 Oral Care U.S. 158 154 2.6 472 460 2.6 International 226 228 (0.9 ) 684 678 0.9 Worldwide 384 382 0.5 1,156 1,138 1.6 OTC U.S. 440 401 9.7 1,359 1,310 3.7 International 608 601 1.2 1,827 1,711 6.8 Worldwide 1,048 1,002 4.6 3,186 3,021 5.5 Women's Health U.S. 3 3 0.0 10 9 11.1 International 266 267 (0.4 ) 782 779 0.4 Worldwide 269 270 (0.4 ) 792 788 0.5 Wound Care/Other U.S. 106 104 1.9 344 342 0.6 International 58 88 (34.1 ) 183 257 (28.8 ) Worldwide 164 192 (14.6 ) 527 599 (12.0 ) TOTAL CONSUMER U.S. 1,370 1,285 6.6 4,282 4,186 2.3 International 2,045 2,071 (1.3 ) 6,035 5,876 2.7 Worldwide 3,415 3,356 1.8 10,317 10,062 2.5 PHARMACEUTICAL Immunology U.S. 2,400 2,420 (0.8 ) 6,717 6,644 1.1 International 998 849 17.6 3,061 2,514 21.8 Worldwide 3,398 3,269 3.9 9,778 9,158 6.8 REMICADE ® U.S. 987 1,206 (18.2 ) 2,821 3,452 (18.3 ) U.S. Exports 100 156 (35.9 ) 346 448 (22.8 ) International 292 285 2.5 921 949 (3.0 ) Worldwide 1,379 1,647 (16.3 ) 4,088 4,849 (15.7 ) SIMPONI / SIMPONI ARIA ® U.S. 281 242 16.1 779 701 11.1 International 255 234 9.0 823 642 28.2 Worldwide 536 476 12.6 1,602 1,343 19.3 STELARA ® U.S. 889 800 11.1 2,460 2,027 21.4 International 421 324 29.9 1,252 903 38.6 Worldwide 1,310 1,124 16.5 3,712 2,930 26.7 OTHER IMMUNOLOGY U.S. 143 16 * 311 16 * International 30 6 * 65 20 * Worldwide 173 22 * 376 36 * Infectious Diseases U.S. 345 353 (2.3 ) 1,006 1,020 (1.4 ) International 478 460 3.9 1,496 1,334 12.1 Worldwide 823 813 1.2 2,502 2,354 6.3 EDURANT ® / rilpivirine U.S. 13 15 (13.3 ) 42 44 (4.5 ) International 189 179 5.6 581 478 21.5 Worldwide 202 194 4.1 623 522 19.3 PREZISTA ® / PREZCOBIX ® / REZOLSTA ® / SYMTUZA ® U.S. 297 287 3.5 847 824 2.8 International 193 180 7.2 613 527 16.3 Worldwide 490 467 4.9 1,460 1,351 8.1 OTHER INFECTIOUS DISEASES U.S. 35 51 (31.4 ) 117 152 (23.0 ) International 96 101 (5.0 ) 302 329 (8.2 ) Worldwide 131 152 (13.8 ) 419 481 (12.9 ) Neuroscience U.S. 651 647 0.6 1,914 1,931 (0.9 ) International 839 851 (1.4 ) 2,663 2,531 5.2 Worldwide 1,490 1,498 (0.5 ) 4,577 4,462 2.6 CONCERTA ® / Methylphenidate U.S. 57 100 (43.0 ) 191 284 (32.7 ) International 100 98 2.0 322 304 5.9 Worldwide 157 198 (20.7 ) 513 588 (12.8 ) INVEGA SUSTENNA ® / XEPLION ® / TRINZA ® / TREVICTA ® U.S. 468 395 18.5 1,306 1,154 13.2 International 281 248 13.3 859 722 19.0 Worldwide 749 643 16.5 2,165 1,876 15.4 RISPERDAL CONSTA ® U.S. 76 87 (12.6 ) 238 273 (12.8 ) International 99 107 (7.5 ) 321 335 (4.2 ) Worldwide 175 194 (9.8 ) 559 608 (8.1 ) OTHER NEUROSCIENCE U.S. 50 65 (23.1 ) 179 220 (18.6 ) International 359 398 (9.8 ) 1,161 1,170 (0.8 ) Worldwide 409 463 (11.7 ) 1,340 1,390 (3.6 ) Oncology U.S. 1,250 846 47.8 3,268 2,207 48.1 International 1,338 1,052 27.2 4,087 3,012 35.7 Worldwide 2,588 1,898 36.4 7,355 5,219 40.9 DARZALEX ® U.S. 318 230 38.3 880 643 36.9 International 180 87 * 561 228 * Worldwide 498 317 57.1 1,441 871 65.4 IMBRUVICA ® U.S. 334 230 45.2 811 622 30.4 International 371 282 31.6 1,101 749 47.0 Worldwide 705 512 37.7 1,912 1,371 39.5 VELCADE ® U.S. — — — — — — International 271 273 (0.7 ) 864 843 2.5 Worldwide 271 273 (0.7 ) 864 843 2.5 ZYTIGA ® U.S. 527 352 49.7 1,420 826 71.9 International 431 317 36.0 1,292 924 39.8 Worldwide 958 669 43.2 2,712 1,750 55.0 OTHER ONCOLOGY U.S. 71 34 * 157 116 35.3 International 85 93 (8.6 ) 269 268 0.4 Worldwide 156 127 22.8 426 384 10.9 Pulmonary Hypertension U.S. 425 371 14.6 1,215 408 * International 231 261 (11.5) 691 309 * Worldwide 656 632 3.8 1,906 717 * OPSUMIT ® U.S. 182 150 21.3 511 174 * International 128 109 17.4 381 130 * Worldwide 310 259 19.7 892 304 * TRACLEER ® U.S. 69 83 (16.9) 208 85 * International 70 127 (44.9) 214 151 * Worldwide 139 210 (33.8) 422 236 * UPTRAVI ® U.S. 154 113 36.3 433 121 * International 17 11 54.5 49 12 * Worldwide 171 124 37.9 482 133 * OTHER U.S. 20 25 (20.0) 63 28 * International 16 14 14.3 47 16 * Worldwide 36 39 (7.7) 110 44 * Cardiovascular / Metabolism / Other U.S. 1,026 1,179 (13.0 ) 3,230 3,488 (7.4 ) International 365 406 (10.1 ) 1,196 1,177 1.6 Worldwide 1,391 1,585 (12.2 ) 4,426 4,665 (5.1 ) XARELTO ® U.S. 612 635 (3.6 ) 1,869 1,790 4.4 International — — — — — — Worldwide 612 635 (3.6 ) 1,869 1,790 4.4 INVOKANA ® / INVOKAMET ® U.S. 150 220 (31.8 ) 523 723 (27.7 ) International 40 45 (11.1 ) 130 121 7.4 Worldwide 190 265 (28.3 ) 653 844 (22.6 ) PROCRIT ® / EPREX ® U.S. 178 168 6.0 523 511 2.3 International 77 70 10.0 244 229 6.6 Worldwide 255 238 7.1 767 740 3.6 OTHER U.S. 86 156 (44.9 ) 315 464 (32.1 ) International 248 291 (14.8 ) 822 827 (0.6 ) Worldwide 334 447 (25.3 ) 1,137 1,291 (11.9 ) TOTAL PHARMACEUTICAL U.S. 6,097 5,816 4.8 17,350 15,698 10.5 International 4,249 3,879 9.5 13,194 10,877 21.3 Worldwide 10,346 9,695 6.7 30,544 26,575 14.9 MEDICAL DEVICES Diabetes Care U.S. 125 168 (25.6 ) 371 482 (23.0 ) International 190 237 (19.8 ) 638 743 (14.1 ) Worldwide 315 405 (22.2 ) 1,009 1,225 (17.6 ) Diagnostics U.S. — — — — — — International — — — — 1 * Worldwide — — — — 1 * Interventional Solutions U.S. 320 279 14.7 947 843 12.3 International 333 274 21.5 1,013 832 21.8 Worldwide 653 553 18.1 1,960 1,675 17.0 Orthopaedics U.S. 1,284 1,308 (1.8 ) 3,923 4,034 (2.8 ) International 827 896 (7.7 ) 2,700 2,738 (1.4 ) Worldwide 2,111 2,204 (4.2 ) 6,623 6,772 (2.2 ) HIPS U.S. 201 195 3.1 621 612 1.5 International 129 133 (3.0 ) 432 418 3.3 Worldwide 330 328 0.6 1,053 1,030 2.2 KNEES U.S. 215 220 (2.3 ) 672 702 (4.3 ) International 126 123 2.4 438 424 3.3 Worldwide 341 343 (0.6 ) 1,110 1,126 (1.4 ) TRAUMA U.S. 395 398 (0.8 ) 1,196 1,179 1.4 International 259 264 (1.9 ) 829 768 7.9 Worldwide 654 662 (1.2 ) 2,025 1,947 4.0 SPINE & OTHER U.S. 473 495 (4.4 ) 1,434 1,541 (6.9 ) International 313 376 (16.8 ) 1,001 1,128 (11.3 ) Worldwide 786 871 (9.8 ) 2,435 2,669 (8.8 ) Surgery U.S. 1,016 1,002 1.4 3,031 3,009 0.7 International 1,360 1,344 1.2 4,283 3,992 7.3 Worldwide 2,376 2,346 1.3 7,314 7,001 4.5 ADVANCED U.S. 421 398 5.8 1,216 1,190 2.2 International 555 525 5.7 1,731 1,543 12.2 Worldwide 976 923 5.7 2,947 2,733 7.8 GENERAL U.S. 423 430 (1.6 ) 1,282 1,276 0.5 International 657 675 (2.7 ) 2,094 2,017 3.8 Worldwide 1,080 1,105 (2.3 ) 3,376 3,293 2.5 SPECIALTY U.S. 172 174 (1.1 ) 533 543 (1.8 ) International 148 144 2.8 458 432 6.0 Worldwide 320 318 0.6 991 975 1.6 Vision U.S. 452 432 4.6 1,351 1,142 18.3 International 680 659 3.2 2,069 1,802 14.8 Worldwide 1,132 1,091 3.8 3,420 2,944 16.2 CONTACT LENSES / OTHER U.S. 319 302 5.6 948 832 13.9 International 516 498 3.6 1,538 1,404 9.5 Worldwide 835 800 4.4 2,486 2,236 11.2 SURGICAL U.S. 133 130 2.3 403 310 30.0 International 164 161 1.9 531 398 33.4 Worldwide 297 291 2.1 934 708 31.9 TOTAL MEDICAL DEVICES U.S. 3,197 3,189 0.3 9,623 9,510 1.2 International 3,390 3,410 (0.6 ) 10,703 10,108 5.9 Worldwide 6,587 6,599 (0.2 ) 20,326 19,618 3.6 WORLDWIDE U.S. 10,664 10,290 3.6 31,255 29,394 6.3 International 9,684 9,360 3.5 29,932 26,861 11.4 Worldwide $ 20,348 19,650 3.6 % $ 61,187 56,255 8.8 % *Percentage greater than 100% or not meaningful EARNINGS BEFORE PROVISION FOR TAXES BY SEGMENT Fiscal Third Quarters Ended Fiscal Nine Months Ended (Dollars in Millions) September 30, October 1, Percent Change September 30, October 1, Percent Change Consumer (1) $ 510 878 (41.9 )% $ 1,887 2,132 (11.5 )% Pharmaceutical (2) 2,876 2,857 0.7 10,193 9,934 2.6 Medical Devices (3) 1,267 1,383 (8.4 ) 3,642 3,938 (7.5 ) Segment earnings before provision for taxes 4,653 5,118 (9.1 ) 15,722 16,004 (1.8 ) Less: Expense not allocated to segments (4) 230 328 845 891 Worldwide income before tax $ 4,423 4,790 (7.7 )% $ 14,877 15,113 (1.6 )% (1) Includes a gain of $0.3 billion from the divestiture of NIZORAL ® in the fiscal nine months of 2018. Includes a gain of $0.4 billion from the divestiture of COMPEED ® in the fiscal third quarter and fiscal nine months of 2017. Includes amortization expense of $0.1 billion in the fiscal third quarters and $0.2 billion in fiscal nine months of 2018 and 2017. (2) Includes an in-process research and development charge of $1.1 billion related to the Alios and XO1 assets and the corresponding XO1 contingent liability reversal of $0.2 billion in the fiscal third quarter and fiscal nine months of 2018. Includes Actelion acquisition related costs of $0.4 billion in the fiscal third quarter of 2017. Includes Actelion acquisition related costs of $0.2 billion and $0.6 billion in the fiscal nine months of 2018 and 2017, respectively. Includes a gain of $0.1 billion from the divestiture of PANCREASE ® in the fiscal nine months of 2018. Includes a gain of $0.2 billion related to monetization of future royalty receivables in the fiscal nine months of 2017. Includes a gain of $0.3 billion in the fiscal nine months of 2017 related to the sale of certain investments in equity securities held by Johnson & Johnson Innovation - JJDC, Inc. Includes litigation expense of $0.1 billion in the fiscal nine months of 2017. Includes amortization expense of $0.7 billion in the fiscal third quarters of 2018 and 2017. Includes amortization expense of $2.3 billion and $0.9 billion in the fiscal nine months of 2018 and 2017, respectively. (3) Includes a restructuring related charge of $0.2 billion and $0.2 billion in the fiscal third quarters of 2018 and 2017, respectively. Includes a restructuring related charge of $0.4 billion and $0.5 billion in the fiscal nine months of 2018 and 2017, respectively. Includes litigation expense of $0.1 billion in the fiscal third quarter of 2017. Includes litigation expense of $0.7 billion and $0.5 billion in the fiscal nine months of 2018 and 2017, respectively. Includes an asset impairment of $0.2 billion primarily related to the insulin pump business in the fiscal nine months of 2017. Includes amortization expense of $0.3 billion and $0.3 billion in the fiscal third quarters of 2018 and 2017, respectively. Includes amortization expense of $0.8 billion and $0.8 billion in the fiscal nine months of 2018 and 2017, respectively. (4) Amounts not allocated to segments include interest income/expense and general corporate income/expense. SALES BY GEOGRAPHIC AREA Fiscal Third Quarters Ended Fiscal Nine Months Ended (Dollars in Millions) September 30, 2018 October 1, 2017 Percent Change September 30, 2018 October 1, 2017 Percent Change United States $ 10,664 10,290 3.6 % $ 31,255 29,394 6.3 % Europe 4,416 4,308 2.5 14,023 12,398 13.1 Western Hemisphere, excluding U.S. 1,550 1,569 (1.2 ) 4,657 4,522 3.0 Asia-Pacific, Africa 3,718 3,483 6.7 11,252 9,941 13.2 Total $ 20,348 19,650 3.6 % $ 61,187 56,255 8.8 % |
Business Combinations and Dives
Business Combinations and Divestitures | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Business Combinations and Divestitures | BUSINESS COMBINATIONS AND DIVESTITURES Subsequent to the third quarter of 2018, the Company announced an agreement with Ci:z Holdings Co., Ltd., a Japanese company focused on the marketing, development and distribution of a broad range of dermocosmetic, cosmetic and skincare products, to launch an all-cash offer (the “tender offer”) to acquire all of the outstanding shares of Ci:z Holdings Co., Ltd. not already held by the Company and its affiliates for ¥5,900 per share, which equates to approximately ¥230 billion (approximately $2 billion , using the exchange rate of 112.82 Japanese Yen to each U.S. Dollar as of 5 p.m., New York City time, on October 22, 2018). The tender offer is expected to close in the first quarter of 2019. Upon completion of the tender offer, the Company intends to conduct a squeeze-out procedure to purchase the remaining shares that were not tendered in the tender offer, which the Company expects to complete in the first half of 2019. The acquisition will include the range of brands comprising DR.CI:LABO, LABO LABO and GENOMER line of skincare products. Subsequent to the third quarter of 2018, the Company completed the divestiture of its LifeScan business for approximately $2.1 billion . As of September 30, 2018, the assets held for sale on the Consolidated Balance Sheet were $0.1 billion of inventory, $0.1 billion of property, plant and equipment, $0.1 billion of intangible assets, net and $1.0 billion of goodwill. The Company will retain certain net liabilities of approximately $0.4 billion associated with the LifeScan business. During the fiscal third quarter of 2018, the Company accepted the binding offer from Fortive Corporation to acquire its Advanced Sterilization Products (ASP) business for approximately $2.7 billion , subject to customary adjustments. The transaction is expected to close in 2019. As of September 30, 2018, the assets held for sale on the Consolidated Balance Sheet were $0.2 billion of inventory, $0.1 billion of property, plant and equipment and $0.2 billion of goodwill. The Company will retain certain net receivables of approximately $0.1 billion associated with the ASP business. During the fiscal third quarter, the Company accepted a binding offer to form a strategic collaboration with Jabil Inc., one of the world’s leading manufacturing services providers for health care products and technology products. The Company is expanding a 12-year relationship with Jabil to produce a range of products within the Ethicon Endo-Surgery and DePuy Synthes businesses. This strategic collaboration has been accepted with respect to the North American sites and is pending applicable consultative processes in other jurisdictions. As of September 30, 2018, the assets held for sale on the Consolidated Balance Sheet were $0.3 billion of inventory and $0.1 billion of property, plant and equipment, net. For additional details on the global supply chain restructuring see Note 12 to the Consolidated Financial Statements. During the fiscal third quarter of 2018, the Company completed the acquisitions of Zarbee’s, Inc., a privately held company that is a leader in naturally-based consumer healthcare products and Medical Enterprises Distribution, a healthcare technology firm focused on surgical procedure innovation. During the fiscal second quarter of 2018, the Company completed the acquisition of BeneVir Biopharm, Inc. (BeneVir), a privately-held, biopharmaceutical company specializing in the development of oncolytic immunotherapies. Additionally, during the fiscal second quarter of 2018, the Company completed the divestitures of NIZORAL ® , PANCREASE ® and VALCHLOR ® products. During the fiscal first quarter of 2018, the Company completed the acquisition of Orthotaxy, a privately-held developer of software-enabled surgery technologies, including a differentiated robotic-assisted surgery solution. During the fiscal third quarter of 2017, the Company completed the acquisitions of TearScience Inc., a manufacturer of products dedicated to treating meibomian gland dysfunction and Sightbox, Inc., a privately-held company that developed a subscription vision care service that connects consumers with eye care professionals and a supply of contact lenses. Additionally, during the fiscal third quarter of 2017, the Company completed the divestiture of COMPEED ® to HRA Pharma. On June 16, 2017, the Company completed the acquisition of Actelion Ltd through an all cash tender offer in Switzerland for $280 per share, amounting to $29.6 billion , net of cash acquired. As part of the transaction, immediately prior to the completion of the acquisition, Actelion spun out its drug discovery operations and early-stage clinical development assets into a newly created Swiss biopharmaceutical company, Idorsia Ltd. The shares of Idorsia are listed on the SIX Swiss Exchange (SIX). The Company currently holds 9.9% of the shares of Idorsia and has rights to an additional 22.1% of Idorsia equity through a convertible loan with a principal amount of approximately $0.5 billion . The convertible loan may be converted into Idorsia shares as follows: (i) up to an aggregate shareholding of 16% of Idorsia shares as a result of certain shareholders holding more than 20% of the issued Idorsia shares, and (ii) up to the balance of the remaining amount within 20 business days of the maturity date of the convertible loan, which has a ten -year term, or if Idorsia undergoes a change of control transaction. The investment in Idorsia was recorded as a cost method investment in Other assets in the Company's consolidated Balance Sheet. The Company also exercised the option acquired on ACT-132577, a product within Idorsia being developed for resistant hypertension currently in phase 2 of clinical development. The Company has also entered into an agreement to provide Idorsia with a Swiss franc denominated credit facility of approximately $250 million . As of September 30, 2018, Idorsia has not made any draw-downs under the credit facility. Actelion has entered into a transitional services agreement with Idorsia. Actelion has established a leading franchise of differentiated, innovative products for pulmonary arterial hypertension (PAH) that are highly complementary to the existing portfolio of the Company. The addition of Actelion’s specialty in-market medicines and late-stage products is consistent with the Company's efforts to grow in attractive and complementary therapeutic areas and serve patients with serious illnesses and significant unmet medical need. During the fiscal second quarter of 2018, the Company finalized the purchase price allocation to the individual assets acquired and liabilities assumed using the acquisition method. The following table presents the amounts recognized for assets acquired and liabilities assumed as of the acquisition date with adjustments made through the second quarter of 2018: (Dollars in Millions) Cash & Cash equivalents 469 Inventory (1) 759 Accounts Receivable 485 Other current assets 93 Property, plant and equipment 104 Goodwill 6,161 Intangible assets 25,010 Deferred Taxes 99 Other non-current assets 19 Total Assets Acquired 33,199 Current liabilities 956 Deferred Taxes 1,776 Other non-current liabilities 413 Total Liabilities Assumed 3,145 Net Assets Acquired 30,054 (1) Includes adjustment of $642 million to write-up the acquired inventory to its estimated fair value. The adjustments made since the date of acquisition were $0.2 billion to the deferred taxes and $0.4 billion to the current liabilities with the offset to goodwill. The assets acquired are recorded in the Pharmaceutical segment. The acquisition of Actelion resulted in approximately $6.2 billion of goodwill. The goodwill is primarily attributable to synergies expected to arise from the acquisition. The goodwill is not expected to be deductible for tax purposes. The purchase price allocation to the identifiable intangible assets is as follows: (Dollars in Millions) Intangible assets with definite lives: Patents and trademarks* $ 24,230 Total amortizable intangibles 24,230 In-process research and development 780 Total intangible assets $ 25,010 *Includes $0.4 billion related to VALCHLOR ® , one of the acquired products, which was divested in the fiscal second quarter of 2018. The patents and trademarks acquired are comprised of developed technology with a weighted average life of 9 years and was primarily based on the patent life of the marketed products. The intangible assets with definite lives were assigned asset lives ranging from 4 to 10 years . The in-process research and development intangible assets were valued for technology programs for unapproved products. The value of the IPR&D was calculated using probability adjusted cash flow projections discounted for the risk inherent in such projects. The discount rate applied was 9% . The acquisition was accounted for using the acquisition method and, accordingly, the results of operations of Actelion were reported in the Company's financial statements beginning on June 16, 2017, the date of acquisition. The following table provides pro forma results of operations for the fiscal nine months ended October 1, 2017 as if Actelion had been acquired as of January 4, 2016. The pro forma results include the effect of certain purchase accounting adjustments such as the estimated changes in depreciation and amortization expense on the acquired tangible and intangible assets. However, pro forma results do not include any anticipated cost savings or other effects of the planned integration of Actelion. Accordingly, such amounts are not necessarily indicative of the results if the acquisition had occurred on the dates indicated or which may occur in the future. Unaudited Pro forma Consolidated Results (Dollars in Millions Except Per Share Data) Fiscal Nine Months Ended October 1, 2017 Net Sales $ 57,486 Net Earnings 11,909 Diluted Net Earnings per Common Share $ 4.34 In the fiscal nine months of 2018, the Company recorded acquisition related costs, of approximately $0.2 billion before tax, which was recorded in Other (income)/expense and Cost of products sold. Additionally, during the fiscal second quarter of 2017, the Company completed the acquisition of Neuravi Limited, a privately-held medical device company that develops and markets medical devices for neurointerventional therapy. During the fiscal first quarter of 2017, the Company acquired Abbott Medical Optics (AMO), a wholly-owned subsidiary of Abbott Laboratories, for $4.3 billion , net of cash acquired. The acquisition included ophthalmic products related to: cataract surgery, laser refractive surgery and consumer eye health. The net purchase price was primarily recorded as amortizable intangible assets for $2.3 billion and goodwill for $1.7 billion . The weighted average life of total amortizable intangibles, the majority being customer relationships, is approximately 14.4 years . The goodwill is primarily attributable to synergies expected to arise from the business acquisition and is not deductible for tax purposes. The intangible assets and goodwill amounts are based on the final purchase price allocation. The assets acquired were recorded in the Medical Devices segment. Additionally, during the fiscal first quarter of 2017, the Company completed the acquisitions of Torax Medical, Inc., a privately-held medical device company that manufactures and markets the LINX™ Reflux Management System for the surgical treatment of gastroesophageal reflux disease and Megadyne Medical Products, Inc., a privately-held medical device company that develops, manufactures and markets electrosurgical tools. |
Legal Proceedings
Legal Proceedings | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings | LEGAL PROCEEDINGS Johnson & Johnson and certain of its subsidiaries are involved in various lawsuits and claims regarding product liability; intellectual property; commercial and other matters; governmental investigations; and other legal proceedings that arise from time to time in the ordinary course of their business. The Company records accruals for loss contingencies associated with these legal matters when it is probable that a liability will be incurred, and the amount of the loss can be reasonably estimated. As of September 30, 2018 , the Company has determined that the liabilities associated with certain litigation matters are probable and can be reasonably estimated. The Company has accrued for these matters and will continue to monitor each related legal issue and adjust accruals as might be warranted based on new information and further developments in accordance with ASC 450-20-25. For these and other litigation and regulatory matters discussed below for which a loss is probable or reasonably possible, the Company is unable to estimate the possible loss or range of loss beyond the amounts already accrued. Amounts accrued for legal contingencies often result from a complex series of judgments about future events and uncertainties that rely heavily on estimates and assumptions. The ability to make such estimates and judgments can be affected by various factors, including whether damages sought in the proceedings are unsubstantiated or indeterminate; scientific and legal discovery has not commenced or is not complete; proceedings are in early stages; matters present legal uncertainties; there are significant facts in dispute; or there are numerous parties involved. In the Company's opinion, based on its examination of these matters, its experience to date and discussions with counsel, the ultimate outcome of legal proceedings, net of liabilities accrued in the Company's balance sheet, is not expected to have a material adverse effect on the Company's financial position. However, the resolution of, or increase in accruals for, one or more of these matters in any reporting period may have a material adverse effect on the Company's results of operations and cash flows for that period. PRODUCT LIABILITY Johnson & Johnson and certain of its subsidiaries are involved in numerous product liability claims and lawsuits involving multiple products. Claimants in these cases seek substantial compensatory and, where available, punitive damages. While the Company believes it has substantial defenses, it is not feasible to predict the ultimate outcome of litigation. The Company has established accruals for product liability claims and lawsuits in compliance with ASC 450-20 based on currently available information, which in some cases may be limited. The Company accrues an estimate of the legal defense costs needed to defend each matter when those costs are probable and can be reasonably estimated. For certain of these matters, the Company has accrued additional amounts such as estimated costs associated with settlements, damages and other losses. To the extent adverse verdicts have been rendered against the Company, the Company does not record an accrual until a loss is determined to be probable and can be reasonably estimated. Product liability accruals can represent projected product liability for thousands of claims around the world, each in different litigation environments and with different fact patterns. Changes to the accruals may be required in the future as additional information becomes available. The most significant of these cases include: the DePuy ASR™ XL Acetabular System and DePuy ASR™ Hip Resurfacing System; the PINNACLE ® Acetabular Cup System; pelvic meshes; RISPERDAL ® ; XARELTO ® ; body powders containing talc, primarily JOHNSONS ® Baby Powder; INVOKANA ® ; and ETHICON PHYSIOMESH ® Flexible Composite Mesh. As of September 30, 2018 , in the United States there were approximately 2,000 plaintiffs with direct claims in pending lawsuits regarding injuries allegedly due to the DePuy ASR™ XL Acetabular System and DePuy ASR™ Hip Resurfacing System; 10,400 with respect to the PINNACLE ® Acetabular Cup System; 37,400 with respect to pelvic meshes; 13,000 with respect to RISPERDAL ® ; 25,500 with respect to XARELTO ® ; 11,700 with respect to body powders containing talc; 1,100 with respect to INVOKANA ® ; and 1,500 with respect to ETHICON PHYSIOMESH ® Flexible Composite Mesh. In August 2010, DePuy Orthopaedics, Inc. (DePuy) announced a worldwide voluntary recall of its ASR ™ XL Acetabular System and DePuy ASR ™ Hip Resurfacing System used in hip replacement surgery. Claims for personal injury have been made against DePuy and Johnson & Johnson. The number of pending lawsuits is expected to fluctuate as certain lawsuits are settled or dismissed and additional lawsuits are filed. Cases filed in federal courts in the United States have been organized as a multi-district litigation in the United States District Court for the Northern District of Ohio. Litigation has also been filed in countries outside of the United States, primarily in the United Kingdom, Canada, Australia, Ireland, Germany and Italy. In November 2013, DePuy reached an agreement with a Court-appointed committee of lawyers representing ASR Hip System plaintiffs to establish a program to settle claims with eligible ASR Hip patients in the United States who had surgery to replace their ASR Hips, known as revision surgery, as of August 31, 2013. DePuy reached additional agreements in February 2015 and March 2017, which further extended the settlement program to include ASR Hip patients who had revision surgeries after August 31, 2013 and prior to February 15, 2017. This settlement program has resolved more than 10,000 claims, therefore bringing to resolution significant ASR Hip litigation activity in the United States. However, lawsuits in the United States remain, and the settlement program does not address litigation outside of the United States. In Australia, a class action settlement was reached that resolved the claims of the majority of ASR Hip patients in that country. In Canada, the Company has reached agreements to settle two pending class actions which have been approved by the Québec Superior Court and the Supreme Court of British Columbia. The British Columbia order is currently the subject of an appeal. The Company continues to receive information with respect to potential additional costs associated with this recall on a worldwide basis. The Company has established accruals for the costs associated with the United States settlement program and DePuy ASR ™ Hip-related product liability litigation. Claims for personal injury have also been made against DePuy Orthopaedics, Inc. and Johnson & Johnson (collectively, DePuy) relating to the PINNACLE ® Acetabular Cup System used in hip replacement surgery. The number of pending product liability lawsuits continues to increase, and the Company continues to receive information with respect to potential costs and the anticipated number of cases. Cases filed in federal courts in the United States have been organized as a multi-district litigation in the United States District Court for the Northern District of Texas. Litigation has also been filed in some state courts and in countries outside of the United States. Several adverse verdicts have been rendered against DePuy, which are currently being appealed. The Company has established an accrual for defense costs only in connection with product liability litigation associated with the PINNACLE ® Acetabular Cup System. Claims for personal injury have been made against Ethicon, Inc. (Ethicon) and Johnson & Johnson arising out of Ethicon's pelvic mesh devices used to treat stress urinary incontinence and pelvic organ prolapse. The Company continues to receive information with respect to potential costs and additional cases. Cases filed in federal courts in the United States have been organized as a multi-district litigation in the United States District Court for the Southern District of West Virginia. The Company has settled or otherwise resolved a majority of the United States cases and the costs associated with these settlements are reflected in the Company's accruals. In addition, class actions and individual personal injury cases or claims have been commenced in various countries outside of the United States, including claims and cases in the United Kingdom, the Netherlands and Belgium, and class actions in Israel, Australia and Canada, seeking damages for alleged injury resulting from Ethicon's pelvic mesh devices. In Australia, a trial of class action issues has been completed and a decision is expected in 2018. The Company has established accruals with respect to product liability litigation associated with Ethicon's pelvic mesh products. Following a June 2016 worldwide market withdrawal of ETHICON PHYSIOMESH ® Flexible Composite Mesh, claims for personal injury have been made against Ethicon, Inc. and Johnson & Johnson alleging personal injury arising out of the use of this hernia mesh device. Cases filed in federal courts in the United States have been organized as a multi-district litigation (MDL) in the United States District Court for the Northern District of Georgia. A multi county litigation (MCL) has also been formed in New Jersey state court and assigned to Atlantic County for cases pending in New Jersey. Product liability lawsuits continue to be filed, and the Company continues to receive information with respect to potential costs and the anticipated number of cases. The Company has established accruals with respect to product liability litigation associated with ETHICON PHYSIOMESH ® Flexible Composite Mesh. Claims for personal injury have been made against Janssen Pharmaceuticals, Inc. and Johnson & Johnson arising out of the use of RISPERDAL ® , indicated for the treatment of schizophrenia, acute manic or mixed episodes associated with bipolar I disorder and irritability associated with autism, and related compounds. Lawsuits have been primarily filed in state courts in Pennsylvania, California, and Missouri. Other actions are pending in various courts in the United States and Canada. Product liability lawsuits continue to be filed, and the Company continues to receive information with respect to potential costs and the anticipated number of cases. The Company has settled or otherwise resolved many of the United States cases and the costs associated with these settlements are reflected in the Company's accruals. Claims for personal injury arising out of the use of XARELTO ® , an oral anticoagulant, have been made against Janssen Pharmaceuticals, Inc. (JPI); Johnson & Johnson; and JPI's collaboration partner for XARELTO ® Bayer AG and certain of its affiliates. The number of pending product liability lawsuits continues to increase, and the Company continues to receive information with respect to potential costs and the anticipated number of cases. Cases filed in federal courts in the United States have been organized as a multi-district litigation in the United States District Court for the Eastern District of Louisiana. In addition, cases have been filed in state courts across the United States. Many of these cases have been consolidated into a state mass tort litigation in Philadelphia, Pennsylvania; and there are coordinated proceedings in Delaware, California and Missouri. Class action lawsuits also have been filed in Canada. The Company has established an accrual for defense costs only in connection with product liability litigation associated with XARELTO ® . Personal injury claims alleging that talc causes cancer have been made against Johnson & Johnson Consumer Inc. and Johnson & Johnson arising out of the use of body powders containing talc, primarily JOHNSONS ® Baby Powder. The number of pending product liability lawsuits continues to increase, and the Company continues to receive information with respect to potential costs and the anticipated number of cases. Lawsuits have been primarily filed in state courts in Missouri, New Jersey and California. Cases filed in federal courts in the United States have been organized as a multi-district litigation in the United States District Court for the District of New Jersey. The Company has successfully defended a number of these cases but there have been verdicts against the Company, including a recent jury verdict of $4.7 billion . The Company believes that it has strong grounds on appeal to overturn these verdicts. The Company has established an accrual for defense costs only in connection with product liability litigation associated with body powders containing talc. Claims for personal injury have been made against a number of Johnson & Johnson companies, including Janssen Pharmaceuticals, Inc. and Johnson & Johnson, arising out of the use of INVOKANA ® , a prescription medication indicated to improve glycemic control in adults with Type 2 diabetes. Lawsuits filed in federal courts in the United States have been organized as a multi-district litigation in the United States District Court for the District of New Jersey. Cases have also been filed in state courts in Pennsylvania, California and New Jersey. Class action lawsuits have been filed in Canada. Product liability lawsuits continue to be filed, and the Company continues to receive information with respect to potential costs and the anticipated number of cases. The Company has settled or otherwise resolved many of the cases and claims in the United States and the costs associated with these settlements are reflected in the Company's accruals. INTELLECTUAL PROPERTY Certain subsidiaries of Johnson & Johnson are subject, from time to time, to legal proceedings and claims related to patent, trademark and other intellectual property matters arising out of their businesses. Many of these matters involve challenges to the coverage and/or validity of the patents on various products and allegations that certain of the Company’s products infringe the patents of third parties. Although these subsidiaries believe that they have substantial defenses to these challenges and allegations with respect to all significant patents, there can be no assurance as to the outcome of these matters. A loss in any of these cases could adversely affect the ability of these subsidiaries to sell their products, result in loss of sales due to loss of market exclusivity, require the payment of past damages and future royalties, and may result in a non-cash impairment charge for any associated intangible asset. The most significant of these matters are described below. Medical Devices In June 2009, Rembrandt Vision Technologies, L.P. (Rembrandt) filed a patent infringement lawsuit against Johnson & Johnson Vision Care, Inc. (JJVCI) in the United States District Court for the Eastern District of Texas alleging that JJVCI's manufacture and sale of its ACUVUE ® ADVANCE and ACUVUE OASYS ® Hydrogel Contact Lenses infringed Rembrandt’s United States Patent No. 5,712,327 and seeking monetary relief. The case was transferred to the United States District Court for the Middle District of Florida, where a trial in May 2012 resulted in a verdict of non-infringement that was subsequently upheld on appeal. In July 2014, Rembrandt sought a new trial based on alleged new evidence, which the District Court denied. In April 2016, the Court of Appeals overturned that ruling and remanded the case to the District Court for a new trial. A new trial was held in August 2017, and the jury returned a verdict of non-infringement in favor of JJVCI. Rembrandt has appealed the verdict to the United States Court of Appeals for the Federal Circuit. In March 2013, Medinol Ltd. (Medinol) filed a patent infringement lawsuit against Cordis Corporation (Cordis) and Johnson & Johnson in the United States District Court for the Southern District of New York alleging that Cordis’s sales of the CYPHER ™ and CYPHER SELECT ™ stents made in the United States since 2005 willfully infringed four of Medinol's patents directed to the geometry of articulated stents. Medinol is seeking damages and attorneys’ fees. Although Johnson & Johnson has since sold Cordis, it has retained liability for this case. After trial in January 2014, the District Court dismissed the case, finding Medinol unreasonably delayed bringing its claims (the laches defense). In September 2014, the District Court denied a motion by Medinol to vacate the judgment and grant it a new trial. Medinol appealed the decision to the United States Court of Appeals for the Federal Circuit. In March 2017, the United States Supreme Court held that the laches defense is not available in patent cases. In April 2018, the United States Court of Appeals for the Federal Circuit remanded the case back to the District Court to reconsider Medinol's motion for a new trial, and briefing in the District Court was completed in June 2018. In November 2016, MedIdea, L.L.C. (MedIdea) filed a patent infringement lawsuit against DePuy Orthopaedics, Inc. in the United States District Court for the Northern District of Illinois alleging infringement by the ATTUNE ® Knee System. In April 2017, MedIdea filed an amended complaint adding DePuy Synthes Products, Inc. and DePuy Synthes Sales, Inc. as named defendants. MedIdea alleges infringement of United States Patent Nos. 6,558,426 (’426); 8,273,132; 8,721,730 and 9,492,280 relating to posterior stabilized knee systems. Specifically, MedIdea alleges that the SOFCAM TM Contact feature of the ATTUNE ® posterior stabilized knee products infringes the patents-in-suit. MedIdea is seeking monetary damages and injunctive relief. In June 2017, the case was transferred to the United States District Court for the District of Massachusetts. A claim construction hearing was held in October 2018. In December 2017, DePuy Synthes Products, Inc. filed a Petition for Inter Partes Review with the United States Patent and Trademark Office (USPTO), seeking to invalidate the ’426 patent, and in June 2018, the USPTO instituted review of the patent. In December 2016, Ethicon Endo-Surgery, Inc. and Ethicon Endo-Surgery, LLC (now known as Ethicon LLC) sued Covidien, Inc. in the United States District Court for the District of Massachusetts seeking a declaration that United States Patent Nos. 6,585,735 (the ’735 patent); 7,118,587; 7,473,253; 8,070,748 and 8,241,284 (the ’284 patent), are either invalid or not infringed by Ethicon’s ENSEAL ® X1 Large Jaw Tissue Sealer product. In April 2017, Covidien LP, Covidien Sales LLC, and Covidien AG (collectively, Covidien) answered and counterclaimed, denying the allegations, asserting willful infringement of the ’735 patent, the ’284 patent and United States Patent Nos. 8,323,310 (the ’310 patent); 9,084,608; 9,241,759 (the ’759 patent) and 9,113,882, and seeking damages and an injunction. Covidien filed a motion for preliminary injunction, which was denied in October 2017. The parties have entered joint stipulations such that only the ’284 patent, the ’735 patent, the ’310 patent and the ’759 patent remain in dispute. Trial is scheduled to begin in September 2019. In November 2017, Board of Regents, The University of Texas System and Tissuegen, Inc. (collectively, UT) filed a lawsuit in the United States District Court for the Western District of Texas against Ethicon, Inc. and Ethicon US, LLC alleging the manufacture and sale of VICRYL ® Plus Antibacterial Sutures, MONOCRYL ® Plus Antibacterial Sutures, PDS ® Plus Antibacterial Sutures, STRATAFIX ® POS ® Antibacterial Sutures and STRATAFIX ® MONOCRYL ® Plus Antibacterial Sutures infringe plaintiffs’ United States Patent Nos. 6,596,296 and 7,033,603 directed to implantable polymer drug releasing biodegradable fibers containing a therapeutic agent. UT is seeking damages and an injunction. A claim construction hearing was held in October 2018, and the parties await a decision. Pharmaceutical In April 2016, MorphoSys AG, a German biotech company, filed a patent infringement lawsuit against Janssen Biotech, Inc. (JBI), Genmab U.S. Inc. and Genmab A/S (collectively, Genmab) in the United States District Court for the District of Delaware. MorphoSys alleges that JBI’s manufacture and sale of DARZALEX ® (daratumumab) willfully infringes MorphoSys’ United States Patent Nos. 8,263,746, 9,200,061 and 9,785,590. MorphoSys is seeking money damages. JBI licenses patents and the commercial rights to DARZALEX ® from Genmab. Trial on liability and damages is scheduled to commence in February 2019. In August 2016, Sandoz Ltd and Hexal AG (collectively, Sandoz) filed a lawsuit in the English High Court against G.D. Searle LLC, a Pfizer company (Searle) and Janssen Sciences Ireland UC (JSI) alleging that Searle’s supplementary protection certificate SPC/GB07/038 (SPC), which is exclusively licensed to JSI, is invalid and should be revoked. Janssen-Cilag Limited sells PREZISTA ® (darunavir) in the United Kingdom pursuant to this license. In October 2016, Searle and JSI counterclaimed against Sandoz for threatened infringement of the SPC based on statements of its plans to launch generic darunavir in the United Kingdom. Sandoz admitted that its generic darunavir product would infringe the SPC if it is found valid. Searle and JSI are seeking an order enjoining Sandoz from marketing its generic darunavir before the expiration of the SPC. Following a trial in April 2017, the Court entered a decision holding that the SPC is valid and granting a final injunction. Sandoz has appealed the Court’s decision and the injunction will be stayed pending the appeal. In January 2018, the Court referred the issue on appeal to the Court of Justice for the European Union (CJEU) and stayed the proceedings pending the CJEU’s ruling on the issue. REMICADE ® Related Cases In August 2014, Celltrion Healthcare Co. Ltd. and Celltrion Inc. (collectively, Celltrion) filed an application with the United States Food and Drug Administration (FDA) for approval to make and sell its own infliximab biosimilar. In March 2015, Janssen Biotech, Inc. (JBI) filed a lawsuit in the United States District Court for the District of Massachusetts against Celltrion and Hospira Healthcare Corporation (Hospira), which has exclusive marketing rights for Celltrion's infliximab biosimilar in the United States, seeking, among other things, a declaratory judgment that their biosimilar product infringes or potentially infringes several JBI patents, including United States Patent No. 6,284,471 relating to REMICADE ® (infliximab) (the ’471 patent) and United States Patent No. 7,598,083 (the ’083 patent) directed to the cell culture media used to make Celltrion’s biosimilar. In August 2016, the District Court granted both Celltrion's and Hospira's motions for summary judgment of invalidity of the ’471 patent. JBI appealed those decisions to the United States Court of Appeals for the Federal Circuit. In January 2018, the Federal Circuit dismissed the appeal as moot based on its affirmance of a decision by the USPTO’s Patent Trial and Appeal Board affirming invalidity of the ’471 patent. In June 2016, JBI filed two additional patent infringement lawsuits asserting the ’083 patent, one against Celltrion and Hospira in the United States District Court for the District of Massachusetts and the other against HyClone Laboratories, Inc., the manufacturer of the cell culture media that Celltrion uses to make its biosimilar product, in the United States District Court for the District of Utah. On July 30, 2018 the District Court granted Celltrion’s motion for summary judgment of non-infringement and entered an order dismissing the ’083 lawsuit against Celltrion and Hospira. JBI appealed to the United States District Court of Appeals for the Federal Circuit. The litigation against HyClone in Utah is stayed pending the outcome of the Massachusetts actions. The FDA approved the first infliximab biosimilar for sale in the United States in 2016, and a number of such products have been launched. Litigation Against Filers of Abbreviated New Drug Applications (ANDAs) The following summarizes lawsuits pending against generic companies that have filed Abbreviated New Drug Applications (ANDAs) with the FDA or undertaken similar regulatory processes outside of the United States, seeking to market generic forms of products sold by various subsidiaries of Johnson & Johnson prior to expiration of the applicable patents covering those products. These ANDAs typically include allegations of non-infringement, invalidity and unenforceability of the applicable patents. In the event the subsidiaries are not successful in these actions, or the statutory 30-month stays of the ANDAs expire before the United States District Court rulings are obtained, the third-party companies involved will have the ability, upon approval of the FDA, to introduce generic versions of the products at issue to the market, resulting in the potential for substantial market share and revenue losses for those products, and which may result in a non-cash impairment charge in any associated intangible asset. In addition, from time to time, subsidiaries may settle these actions and such settlements can involve the introduction of generic versions of the products at issue to the market prior to the expiration of the relevant patents. The Inter Partes Review (IPR) process with the United States Patent and Trademark Office (USPTO), created under the 2011 America Invents Act, is also being used by generic companies in conjunction with these ANDAs and lawsuits to challenge patents held by the Company’s subsidiaries. ZYTIGA ® In July 2015, Janssen Biotech, Inc., Janssen Oncology, Inc. and Janssen Research & Development, LLC (collectively, Janssen) and BTG International Ltd. (BTG) initiated a patent infringement lawsuit in the United States District Court for the District of New Jersey against a number of generic companies (and certain of their affiliates and/or suppliers) who filed ANDAs seeking approval to market a generic version of ZYTIGA ® 250mg before the expiration of United States Patent No. 8,822,438 (the ’438 patent). The generic companies currently include Amneal Pharmaceuticals, LLC and Amneal Pharmaceuticals of New York, LLC (collectively, Amneal); Apotex Inc. and Apotex Corp. (collectively, Apotex); Citron Pharma LLC (Citron); Dr. Reddy’s Laboratories, Ltd. and Dr. Reddy’s Laboratories, Inc. (collectively, Dr. Reddy’s); Mylan Pharmaceuticals Inc. and Mylan Inc. (collectively, Mylan); Par Pharmaceuticals, Inc. and Par Pharmaceutical Companies, Inc. (collectively, Par); Sun Pharmaceutical Industries Ltd. and Sun Pharmaceuticals Industries, Inc. (collectively, Sun); Teva Pharmaceuticals USA, Inc. (Teva); Wockhardt Bio A.G.; Wockhardt USA LLC and Wockhardt Ltd. (collectively, Wockhardt); West-Ward Pharmaceutical Corp. (West-Ward) and Hikma Pharmaceuticals, LLC (Hikma). Janssen and BTG also initiated patent infringement lawsuits in the United States District Court for the District of New Jersey against Amerigen Pharmaceuticals Limited (Amerigen) in May 2016, and Glenmark Pharmaceuticals, Inc. (Glenmark) in June 2016, each of whom filed an ANDA seeking approval to market its generic version of ZYTIGA ® before the expiration of the ’438 patent. These lawsuits have been consolidated with the lawsuit filed in July 2015. In August 2015, Janssen and BTG filed an additional jurisdictional protective lawsuit against the Mylan defendants in the United States District Court for the Northern District of West Virginia, which has been stayed. In August 2017, Janssen and BTG initiated a patent infringement lawsuit in the United States District Court for the District of New Jersey against Teva, who filed an ANDA seeking approval to market a generic version of ZYTIGA ® 500mg before the expiration of the ’438 patent. This lawsuit has been consolidated with the lawsuit filed in July 2015. In February 2018, Janssen and BTG filed a patent infringement lawsuit against MSN Pharmaceuticals, Inc. and MSN Laboratories Private Limited (collectively, MSN) based on its ANDA seeking approval for a generic version of ZYTIGA ® prior to the expiration of the ‘438 patent. In February 2018, the court heard oral arguments on a motion for summary judgment of non-infringement filed by certain defendants and, in May 2018, administratively terminated the motion without prejudice to reassertion following trial. In October 2018, the Court issued a ruling invalidating all asserted claims of the ‘438 patent. The Court held that the patent claims would be infringed if the patent were valid. Janssen plans to appeal the Court’s decision. The Court extended an injunction prohibiting generics from launching until the earlier of November 9, 2018, or until the Federal Circuit renders a decision on a stay pending appeal. If the Federal Circuit Court of Appeals declines to extend the injunction, the Company expects that a generic version of ZYTIGA ® will enter the market and will result in a significant decline in sales of ZYTIGA ® . In December 2017, Janssen and BTG entered into a settlement agreement with Glenmark. In January 2018, Janssen dismissed its lawsuit against Sun after it withdrew its ANDA. In April 2018, Janssen and BTG entered into a settlement agreement with Apotex. In each of the above lawsuits, Janssen is seeking an order enjoining the defendants from marketing their generic versions of ZYTIGA ® before the expiration of the ’438 patent. Several generic companies including Amerigen, Argentum Pharmaceuticals LLC (Argentum), Mylan, Wockhardt, Actavis, Amneal, Dr. Reddy’s, Sun, Teva, West-Ward and Hikma filed Petitions for Inter Partes Review (IPR) with the USPTO, seeking to invalidate the ’438 patent. In January 2018, the USPTO issued decisions finding the '438 patent claims unpatentable, and Janssen has requested rehearing. The IPR decisions are not binding on the district court in the pending litigation. In October 2017, Janssen Inc. and Janssen Oncology, Inc. (collectively, Janssen) initiated two Notices of Application under Section 6 of the Patented Medicines (Notice of Compliance) Regulations against Teva Canada Limited (Teva) and the Minister of Health in Canada in response to Teva's filing Abbreviated New Drug Submissions (ANDS) and seeking approval to market generic versions of ZYTIGA ® 250mg and ZYTIGA ® 500mg before the expiration of Canadian Patent No. 2,661,422. In June 2018, the parties entered into a settlement agreement. In November 2017, Janssen initiated a Notice of Application under Section 6 of the Patented Medicines (Notice of Compliance) Regulations against Apotex Inc. (Apotex) and the Minister of Health in Canada in response to Apotex’s filing of an Abbreviated New Drug Submission (ANDS) seeking approval to market a generic version of ZYTIGA ® before the expiration of Canadian Patent No. 2,661,422. The federal court of Canada scheduled the Final Hearing for April 2019. Janssen is seeking an order prohibiting the Minister of Health from issuing a Notice of Compliance with respect to Apotex's ANDS before the expiration of Janssen's patent. XARELTO ® B eginning in October 2015, Janssen Pharmaceuticals, Inc. (JPI) and Bayer Pharma AG and Bayer Intellectual Property GmbH (collectively, Bayer) filed patent infringement lawsuits in the United States District Court for the District of Delaware against a number of generic companies who filed ANDAs seeking approval to market generic versions of XARELTO ® before expiration of Bayer’s United States Patent Nos. 7,157,456, 7,585,860 and 7,592,339 relating to XARELTO ® . JPI is the exclusive sublicensee of the asserted patents. The following generic companies are named defendants: Aurobindo Pharma Limited and Aurobindo Pharma USA, Inc. (collectively, Aurobindo); Breckenridge Pharmaceutical, Inc. (Breckenridge); InvaGen Pharmaceuticals Inc. (InvaGen); Micro Labs USA Inc. and Micro Labs Ltd (collectively, Micro); Mylan Pharmaceuticals Inc. (Mylan); Prinston Pharmaceuticals, Inc.; Sigmapharm Laboratories, LLC (Sigmapharm); Torrent Pharmaceuticals, Limited and Torrent Pharma Inc. (collectively, Torrent). Trial concluded in April 2018. In July 2018 the court entered judgment against Mylan and Sigmapharm, holding that the asserted compound patent is valid and infringed. In September 2018, the court entered judgment against the remaining defendants. Beginning in April 2017, JPI and Bayer Intellectual Property GmbH and Bayer AG (collectively, Bayer AG) filed patent infringement lawsuits in the United States District Court for the District of Delaware against a number of generic companies |
Restructuring
Restructuring | 9 Months Ended |
Sep. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | RESTRUCTURING In the first quarter of 2016, the Company announced restructuring actions in its Medical Devices segment to better serve the needs of patients and customers in today’s evolving healthcare marketplace. The Company is undertaking actions to strengthen its go-to-market model, accelerate the pace of innovation, further prioritize key platforms and geographies, and streamline operations while maintaining high quality standards. The Company estimates that, in connection with its plans, it will record pre-tax restructuring related charges of approximately $2.4 billion . In the fiscal third quarter of 2018, the Company recorded a pre-tax charge of $101 million , of which $9 million was included in cost of products sold and $45 million was included in other (income) expense. See the following table for additional details on the restructuring programs. Total project costs of approximately $2.4 billion have been recorded since the restructuring was announced. Additionally, as part of the plan, the Company expects that the restructuring actions will result in position eliminations of approximately 5 percent of the Medical Devices segment’s global workforce. Approximately 2,650 positions have been eliminated of which 1,950 received separation payments since the restructuring announcement. On April 17, 2018, the Company announced plans to implement a series of actions across its Global Supply Chain that are intended to focus resources and increase investments in the critical capabilities, technologies and solutions necessary to manufacture and supply its product portfolio, enhance agility and drive growth. The Global Supply Chain actions will include expanding the use of strategic collaborations and bolstering initiatives to reduce complexity, improve cost-competitiveness, enhance capabilities and optimize the Supply Chain network. For additional details on the global supply chain restructuring strategic collaborations see Note 10 to the Consolidated Financial Statements. In the fiscal third quarter of 2018, the Company recorded a pre-tax charge of $89 million , of which $14 million was included in cost of products sold and $34 million was included in other (income) expense. Total project costs of $0.1 billion have been recorded since the restructuring was announced. See the following table for additional details on the restructuring programs. In total, the Company expects these actions to generate approximately $0.6 billion to $0.8 billion in annual pre-tax cost savings that will be substantially delivered by 2022. The Company expects to record pre-tax restructuring charges of approximately $1.9 billion to $2.3 billion , over the 4 to 5 year period of this activity. The Company estimates that approximately 70% of the cumulative pre-tax costs will result in cash outlays. These costs are associated with network optimizations, exit costs and accelerated depreciation and amortization. The following table summarizes the severance related reserves and the associated spending under these restructuring programs through the fiscal nine months of 2018: (Dollars in Millions) Severance Asset Write-offs Other** Total Reserve balance, December 31, 2017 $ 229 — 38 267 Current year activity: Charges — 100 373 473 Cash payments (29 ) — (388 ) (417 ) Settled non cash — (100 ) — (100 ) Reserve balance, September 30, 2018* $ 200 — 23 223 *Cash outlays for severance are expected to be substantially paid out over the next 2 years in accordance with the Company's plans and local laws. **Other includes project expense such as salaries for employees supporting the initiative and consulting expenses. The Company expects that the Medical Devices restructuring program will be completed by the end of fiscal year 2018 with certain projects and severance charges continuing beyond that date. The Company continuously reevaluates its severance reserves related to restructuring and the timing of payments has extended due to the planned release of associates regarding several longer-term projects. The Company believes that the existing severance reserves are sufficient to cover the Global Supply Chain plans given the period over which the actions will take place. The Company will continue to assess and make adjustments as necessary if additional amounts become probable and estimable. |
Fair Value Measurements (Polici
Fair Value Measurements (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Cash and Cash Equivalents, Policy | The Company classifies all highly liquid investments with stated maturities of three months or less from date of purchase as cash equivalents and all highly liquid investments with stated maturities of greater than three months from the date of purchase as current marketable securities. Available for sale securities with stated maturities of greater than one year from the date of purchase are available for current operations and are classified as cash equivalents and current marketable securities. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements | As required by the transition provisions of this update, the Company made the following reclassifications to the 2017 fiscal third quarter and fiscal nine months Consolidated Statement of Earnings to retroactively apply classification of the service cost component and the other components of NPBC: (Dollars In millions) Increase (Decrease) to Net Expense Fiscal Third Quarter Ended Fiscal Nine Months Ended Cost of products sold $ 23 69 Selling, marketing and administrative expenses 27 80 Research and development expense 11 32 Other (income) expense, net (61 ) (181 ) Earnings before provision for taxes on income $ — — The following table summarizes the cumulative effect adjustments made to the 2018 opening balance of retained earnings upon adoption of the new accounting standards mentioned above: (Dollars in Millions) Cumulative Effect Adjustment Increase (Decrease) to Retained Earnings ASU 2014-09 - Revenue from Contracts with Customers $ (47 ) ASU 2016-01 - Financial Instruments 232 ASU 2016-16 - Income Taxes: Intra-Entity Transfers 1,311 Total $ 1,496 In accordance with the new standard requirements, the disclosure of the impact of adoption on the Company's Consolidated Statement of Earnings and Balance Sheet was as follows: Statement of Earnings - For the fiscal nine months ended September 30, 2018 (Dollars in millions) As Reported Effect of change Balance without adoption of ASC 606 Sales to customers $ 61,187 (18 ) 61,169 Net earnings 12,255 (14 ) 12,241 Statement of Earnings - For the fiscal third quarter ended September 30, 2018 (Dollars in millions) As Reported Effect of change Balance without adoption of ASC 606 Sales to customers $ 20,348 22 20,370 Net earnings 3,934 19 3,953 Balance Sheet - As of September 30, 2018 As Reported Effect of change Balance without adoption of ASC 606 Assets 155,703 24 155,727 Liabilities 91,077 (7 ) 91,070 Equity $ 64,626 31 64,657 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | (Dollars in Millions) September 30, 2018 December 31, 2017 Raw materials and supplies $ 1,202 1,140 Goods in process 1,986 2,317 Finished goods 5,490 5,308 Total inventories (1) $ 8,678 8,765 (1) Net of assets held for sale on the Consolidated Balance Sheet for approximately $0.1 billion related to the divestiture of the LifeScan business, $0.2 billion related to the divestiture of the Advanced Sterilization Products business and $0.3 billion related to the strategic collaboration with Jabil Inc., all of which were pending as of September 30, 2018. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | (Dollars in Millions) September 30, 2018 December 31, 2017 Intangible assets with definite lives: Patents and trademarks — gross $ 35,478 36,427 Less accumulated amortization 9,077 7,223 Patents and trademarks — net (1) 26,401 29,204 Customer relationships and other intangibles — gross 21,176 20,204 Less accumulated amortization 8,168 7,463 Customer relationships and other intangibles — net 13,008 12,741 Intangible assets with indefinite lives: Trademarks 7,002 7,082 Purchased in-process research and development (2) 2,226 4,201 Total intangible assets with indefinite lives 9,228 11,283 Total intangible assets — net $ 48,637 53,228 (1) Net of approximately $0.1 billion classified as assets held for sale on the Consolidated Balance Sheet related to the divestiture of the LifeScan business, which was pending as of September 30, 2018. See Note 10 to the Consolidated Financial Statements for additional details (2) The decrease was primarily attributable to the write-down of $1.1 billion related to the assets acquired in the acquisitions of Alios Biopharma Inc. (Alios) and XO1 Limited (XO1). Of the $1.1 billion , the Company recorded a partial impairment charge of $0.8 billion related to the development program of AL-8176, an investigational drug for the treatment of Respiratory Syncytial Virus (RSV) and human metapneumovirus (hMPV) acquired with the 2014 acquisition of Alios. The impairment charge was calculated based on updated cash flow projections discounted for the inherent risk in the asset development and reflects the impact of recent phase 2b clinical trial suspension, a decrease in the probability of success factors and the ongoing analysis of asset development activities. In addition, an impairment charge of $0.3 billion was recorded for the discontinuation of the development project for an anti-thrombin antibody associated with the 2015 acquisition of XO1. |
Goodwill | Goodwill as of September 30, 2018 was allocated by segment of business as follows: (Dollars in Millions) Consumer Pharm Med Devices Total Goodwill, net at December 31, 2017 $ 8,875 9,109 13,922 31,906 Goodwill, related to acquisitions 169 51 208 428 Goodwill, related to divestitures — — (1,246 ) (1) (1,246 ) Currency translation/Other (304 ) (48 ) (34 ) (386 ) Goodwill, net at September 30, 2018 $ 8,740 9,112 12,850 30,702 (1) Goodwill of $1.0 billion is related to the divestiture of the LifeScan business and $0.2 billion is related to the divestiture of the Advanced Sterilization Products business, both of which were pending and classified as assets held for sale on the Consolidated Balance Sheet as of September 30, 2018. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of Derivative Activity | The following table is a summary of the activity related to derivatives and hedges for the fiscal third quarters in 2018 and 2017 : September 30, 2018 October 1, 2017 (Dollars in Millions) Sales Cost of Products Sold R&D Expense Interest (Income) Expense Other (Income) Expense Sales Cost of Products Sold R&D Expense Interest (Income) Expense Other (Income) Expense The effects of fair value, net investment and cash flow hedging: Gain (Loss) on fair value hedging relationship: Interest rate swaps contracts: Hedged items $ — — — (7 ) — — — — (4 ) — Derivatives designated as hedging instruments — — — 7 — — — — 4 — Gain (Loss) on net investment hedging relationship: Cross currency interest rate swaps contracts: Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing — — — 25 — — — — — — Amount of gain or (loss) recognized in AOCI — — — 25 — — — — — — Gain (Loss) on cash flow hedging relationship: Forward foreign exchange contracts: Amount of gain or (loss) reclassified from AOCI into income (1) 4 97 10 — (3 ) 5 (63 ) (30 ) — (49 ) Amount of gain or (loss) recognized in AOCI (1) 15 192 (4 ) — (1 ) 18 (16 ) (39 ) — (15 ) Cross currency interest rate swaps contracts: Amount of gain or (loss) reclassified from AOCI into income — — — 34 — — — 106 — Amount of gain or (loss) recognized in AOCI $ — — — 35 — — — — 114 — The following table is a summary of the activity related to derivatives and hedges for the fiscal nine months in 2018 and 2017 : September 30, 2018 October 1, 2017 (Dollars in Millions) Sales Cost of Products Sold R&D Expense Interest (Income) Expense Other (Income) Expense Sales Cost of Products Sold R&D Expense Interest (Income) Expense Other (Income) Expense The effects of fair value, net investment and cash flow hedging: Gain (Loss) on fair value hedging relationship: Interest rate swaps contracts: Hedged items $ — — — 3 — — — — (6 ) — Derivatives designated as hedging instruments — — — (3 ) — — — — 6 — Gain (Loss) on net investment hedging relationship: Cross currency interest rate swaps contracts: Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing — — — 27 — — — — — — Amount of gain or (loss) recognized in AOCI — — — 27 — — — — — — Gain (Loss) on cash flow hedging relationship: Forward foreign exchange contracts: Amount of gain or (loss) reclassified from AOCI into income (1) 50 175 (242 ) — (24 ) (34 ) (162 ) (131 ) — (86 ) Amount of gain or (loss) recognized in AOCI (1) (3 ) 138 (220 ) — (16 ) 40 105 (167 ) — (59 ) Cross currency interest rate swaps contracts: Amount of gain or (loss) reclassified from AOCI into income — — — 106 — — — — 63 — Amount of gain or (loss) recognized in AOCI $ — — — 111 — — — — 73 — (1) Includes equity collar contracts. The equity collar contracts expired in December of 2017 |
Schedule of Derivatives Recorded in Consolidated Balance Sheet | As of September 30, 2018 and December 31, 2017, the following amounts were recorded on the Consolidated Balance Sheet related to cumulative basis adjustment for fair value hedges: Line item in the Consolidated Balance Sheet in which the hedged item is included Carrying Amount of the Hedged Liability Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liability (Dollars in Millions) September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 Current Portion of Long-term Debt $ 601 597 1 2 Long-term Debt 495 496 (4 ) 3 |
Schedule of Effect of Derivatives not Designated as Hedging Instruments | The following table is the effect of derivatives not designated as hedging instrument for the fiscal third quarters and fiscal nine months in 2018 and 2017: Gain/(Loss) Recognized In Income on Derivative Gain/(Loss) Recognized In Income on Derivative (Dollars in Millions) Location of Gain /(Loss) Recognized in Income on Derivative Fiscal Third Quarters Ended Fiscal Nine Months Ended Derivatives Not Designated as Hedging Instruments September 30, 2018 October 1, 2017 September 30, 2018 October 1, 2017 Foreign Exchange Contracts Other (income) expense $ 49 (12 ) (23 ) 22 |
Schedule of Effect of Net Investment Hedges | The following table is the effect of net investment hedges for the fiscal third quarters in 2018 and 2017: Gain/(Loss) Recognized In Accumulated OCI Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income Into Income Gain/(Loss) Reclassified From Accumulated OCI Into Income (Dollars in Millions) Fiscal Third Quarters Ended September 30, 2018 October 1, 2017 September 30, 2018 October 1, 2017 Debt $ (50 ) (151 ) Other (income) expense — — Cross Currency interest rate swaps $ (75 ) — Other (income) expense — — The following table is the effect of net investment hedges for the fiscal nine months in 2018 and 2017: Gain/(Loss) Recognized In Accumulated OCI Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income Into Income Gain/(Loss) Reclassified From Accumulated OCI Into Income (Dollars in Millions) Fiscal Nine Months Ended September 30, 2018 October 1, 2017 September 30, 2018 October 1, 2017 Debt $ 106 (529 ) Other (income) expense — — Cross Currency interest rate swaps $ (37 ) — Other (income) expense — — |
Summary of Activity Related to Equity Investments | The following table is a summary of the activity related to equity investments as of September 30, 2018 : (Dollars in Millions) December 31, 2017 September 30, 2018 Carrying Value Changes in Fair Value Reflected in Net Income (1) Sales/ Purchases/Other (2) Carrying Value Non Current Other Assets Equity Investments with readily determinable value $ 751 (35 ) (19 ) 697 697 Equity Investments without readily determinable value $ 510 7 122 639 639 (1) Recorded in Other Income/Expense (2) Other includes impact of currency |
Financial Assets and Liabilities at Fair Value | The Company’s significant financial assets and liabilities measured at fair value as of September 30, 2018 and December 31, 2017 were as follows: September 30, 2018 December 31, 2017 (Dollars in Millions) Level 1 Level 2 Level 3 Total Total (1) Derivatives designated as hedging instruments: Assets: Forward foreign exchange contracts $ — 551 — 551 418 Interest rate contracts (2)(4) — 19 — 19 7 Total — 570 — 570 425 Liabilities: Forward foreign exchange contracts — 401 — 401 402 Interest rate contracts (3)(4) — 269 — 269 165 Total — 670 — 670 567 Derivatives not designated as hedging instruments: Assets: Forward foreign exchange contracts — 28 — 28 38 Liabilities: Forward foreign exchange contracts — 45 — 45 38 Other Investments: Equity investments (5) 697 — — 697 751 Debt securities (6) $ — 11,155 — 11,155 5,310 Gross to Net Derivative Reconciliation September 30, 2018 December 31, 2017 (Dollars in Millions) Total Gross Assets $ 598 463 Credit Support Agreement (CSA) (290 ) (76 ) Total Net Asset 308 387 Total Gross Liabilities 715 605 Credit Support Agreement (CSA) (443 ) (238 ) Total Net Liabilities $ 272 367 (1) 2017 assets and liabilities are all classified as Level 2 with the exception of equity investments of $751 million , which are classified as Level 1. (2) Includes $4 million and $7 million of non-current other assets for September 30, 2018 and December 31, 2017 , respectively. (3) Includes $6 million and $9 million of non-current other liabilities for September 30, 2018 and December 31, 2017 , respectively. (4) Includes cross currency interest rate swaps and interest rate swaps. (5) Classified as non-current other assets. The carrying amount of the equity investments were $697 million and $751 million as of September 30, 2018 and December 31, 2017 , respectively. (6) Classified as cash equivalents and current marketable securities. |
Marketable Securities | The Company's cash, cash equivalents and current marketable securities as of September 30, 2018 comprised: September 30, 2018 (Dollars in Millions) Carrying Amount Unrecognized Gain Unrecognized Loss Estimated Fair Value Cash & Cash Equivalents Current Marketable Securities Cash $ 2,575 — — 2,575 2,575 Other sovereign securities (1) — — — — — U.S. reverse repurchase agreements 2,260 — — 2,260 2,260 Other reverse repurchase agreements 479 — — 479 479 Corporate debt securities (1) 200 — — 200 200 — Money market funds 1,763 — — 1,763 1,763 Time deposits (1) 932 — — 932 932 Subtotal 8,209 — — 8,209 8,209 — Unrealized Gain Unrealized Loss Government securities 10,885 — (1 ) 10,884 7,835 3,049 Other sovereign securities — — — — — — Corporate debt securities 271 — — 271 12 259 Subtotal available for sale debt (2) $ 11,156 — (1 ) 11,155 7,847 3,308 Total cash, cash equivalents and current marketable securities 16,056 3,308 (1) Held to maturity investments are reported at amortized cost and gains or losses are reported in earnings. (2) Available for sale debt securities are reported at fair value with unrealized gains and losses reported net of taxes in other comprehensive income. |
Schedule of Available for Sale Securities Maturities | The contractual maturities of the available for sale securities at September 30, 2018 are as follows: (Dollars in Millions) Cost Basis Fair Value Due within one year $ 11,079 11,078 Due after one year through five years 77 77 Due after five years through ten years — — Total debt securities $ 11,156 11,155 |
Financial Liabilities not Measured at Fair Value | Financial Instruments not measured at Fair Value: The following financial liabilities are held at carrying amount on the consolidated balance sheet as of September 30, 2018 : (Dollars in Millions) Carrying Amount Estimated Fair Value Financial Liabilities Current Debt $ 1,773 1,773 Non-Current Debt 4.75% Notes due 2019 (1B Euro 1.1681) 1,166 1,231 1.875% Notes due 2019 495 490 3% Zero Coupon Convertible Subordinated Debentures due in 2020 52 100 1.950% Notes due 2020 499 490 2.95% Debentures due 2020 548 551 3.55% Notes due 2021 448 454 2.45% Notes due 2021 349 345 1.65% Notes due 2021 998 967 0.250% Notes due 2022 (1B Euro 1.1681) 1,165 1,172 2.25% Notes due 2022 996 973 6.73% Debentures due 2023 250 291 3.375% Notes due 2023 805 829 2.05% Notes due 2023 498 477 0.650% Notes due 2024 (750MM Euro 1.1681) 872 881 5.50% Notes due 2024 (500 MM GBP 1.3123) 651 793 2.625% Notes due 2025 748 719 2.45% Notes due 2026 1,991 1,884 2.95% Notes due 2027 996 956 2.90% Notes due 2028 1,493 1,420 1.150% Notes due 2028 (750MM Euro 1.1681) 868 874 6.95% Notes due 2029 296 385 4.95% Debentures due 2033 498 559 4.375% Notes due 2033 856 912 1.650% Notes due 2035 (1.5B Euro 1.1681) 1,735 1,774 3.55% Notes due 2036 988 945 5.95% Notes due 2037 991 1,252 3.625% Notes due 2037 1,486 1,433 3.40% Notes due 2038 990 926 5.85% Debentures due 2038 696 874 4.50% Debentures due 2040 538 573 4.85% Notes due 2041 297 330 4.50% Notes due 2043 495 532 3.70% Notes due 2046 1,971 1,884 3.75% Notes due 2047 991 951 3.50% Notes due 2048 742 689 Other 22 22 Total Non-Current Debt $ 29,480 29,938 |
Pensions and Other Benefit Pl_2
Pensions and Other Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost | Net periodic benefit cost for the Company’s defined benefit retirement plans and other benefit plans for the fiscal third quarters and fiscal nine months of 2018 and 2017 include the following components: Fiscal Third Quarters Ended Fiscal Nine Months Ended Retirement Plans Other Benefit Plans Retirement Plans Other Benefit Plans (Dollars in Millions) September 30, 2018 October 1, 2017 September 30, 2018 October 1, 2017 September 30, 2018 October 1, 2017 September 30, 2018 October 1, 2017 Service cost $ 307 266 67 62 925 772 202 185 Interest cost 247 232 37 40 748 693 112 119 Expected return on plan assets (550 ) (514 ) (1 ) (2 ) (1,664 ) (1,528 ) (5 ) (5 ) Amortization of prior service cost/(credit) 1 1 (7 ) (8 ) 2 2 (23 ) (23 ) Recognized actuarial losses 213 154 31 34 641 456 92 103 Curtailments and settlements — 2 — — (2 ) 1 — — Net periodic benefit cost $ 218 141 127 126 650 396 378 379 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Income | Components of other comprehensive income (loss) consist of the following: Foreign Gain/(Loss) Employee Gain/(Loss) Total Accumulated Currency On Benefit On Derivatives Other Comprehensive (Dollars in Millions) Translation Securities Plans & Hedges Income (Loss) December 31, 2017 $ (7,351 ) 232 (6,150 ) 70 (13,199 ) Net change (1,718 ) (1 ) 557 (54 ) (1,216 ) Cumulative adjustment to retained earnings (232 ) (1) (232 ) September 30, 2018 $ (9,069 ) (1 ) (5,593 ) 16 (14,647 ) (1) See Note 1 to the Consolidated Financial Statements for additional details on the adoption of ASU 2016-01 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic Net Earnings per Share to Diluted Net Earnings per Share | The following is a reconciliation of basic net earnings per share to diluted net earnings per share for the fiscal third quarters and fiscal nine months ended September 30, 2018 and October 1, 2017 : Fiscal Third Quarters Ended Fiscal Nine Months Ended (Shares in Millions) September 30, 2018 October 1, 2017 September 30, 2018 October 1, 2017 Basic net earnings per share $ 1.47 1.40 4.57 4.46 Average shares outstanding — basic 2,683.2 2,684.6 2,682.6 2,694.4 Potential shares exercisable under stock option plans 140.3 139.3 140.9 141.2 Less: shares which could be repurchased under treasury stock method (96.7 ) (87.2 ) (94.7 ) (90.2 ) Convertible debt shares 0.8 1.0 0.8 1.0 Average shares outstanding — diluted 2,727.6 2,737.7 2,729.6 2,746.4 Diluted net earnings per share $ 1.44 1.37 4.49 4.37 |
Segments of Business and Geog_2
Segments of Business and Geographic Areas (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Sales By Segment Of Business | SALES BY SEGMENT OF BUSINESS Fiscal Third Quarters Ended Fiscal Nine Months Ended (Dollars in Millions) September 30, October 1, Percent Change September 30, October 1, Percent Change CONSUMER Baby Care U.S. $ 120 100 20.0 % $ 306 326 (6.1 )% International 352 377 (6.6 ) 1,079 1,100 (1.9 ) Worldwide 472 477 (1.0 ) 1,385 1,426 (2.9 ) Beauty U.S. 543 523 3.8 1,791 1,739 3.0 International 535 510 4.9 1,480 1,351 9.5 Worldwide 1,078 1,033 4.4 3,271 3,090 5.9 Oral Care U.S. 158 154 2.6 472 460 2.6 International 226 228 (0.9 ) 684 678 0.9 Worldwide 384 382 0.5 1,156 1,138 1.6 OTC U.S. 440 401 9.7 1,359 1,310 3.7 International 608 601 1.2 1,827 1,711 6.8 Worldwide 1,048 1,002 4.6 3,186 3,021 5.5 Women's Health U.S. 3 3 0.0 10 9 11.1 International 266 267 (0.4 ) 782 779 0.4 Worldwide 269 270 (0.4 ) 792 788 0.5 Wound Care/Other U.S. 106 104 1.9 344 342 0.6 International 58 88 (34.1 ) 183 257 (28.8 ) Worldwide 164 192 (14.6 ) 527 599 (12.0 ) TOTAL CONSUMER U.S. 1,370 1,285 6.6 4,282 4,186 2.3 International 2,045 2,071 (1.3 ) 6,035 5,876 2.7 Worldwide 3,415 3,356 1.8 10,317 10,062 2.5 PHARMACEUTICAL Immunology U.S. 2,400 2,420 (0.8 ) 6,717 6,644 1.1 International 998 849 17.6 3,061 2,514 21.8 Worldwide 3,398 3,269 3.9 9,778 9,158 6.8 REMICADE ® U.S. 987 1,206 (18.2 ) 2,821 3,452 (18.3 ) U.S. Exports 100 156 (35.9 ) 346 448 (22.8 ) International 292 285 2.5 921 949 (3.0 ) Worldwide 1,379 1,647 (16.3 ) 4,088 4,849 (15.7 ) SIMPONI / SIMPONI ARIA ® U.S. 281 242 16.1 779 701 11.1 International 255 234 9.0 823 642 28.2 Worldwide 536 476 12.6 1,602 1,343 19.3 STELARA ® U.S. 889 800 11.1 2,460 2,027 21.4 International 421 324 29.9 1,252 903 38.6 Worldwide 1,310 1,124 16.5 3,712 2,930 26.7 OTHER IMMUNOLOGY U.S. 143 16 * 311 16 * International 30 6 * 65 20 * Worldwide 173 22 * 376 36 * Infectious Diseases U.S. 345 353 (2.3 ) 1,006 1,020 (1.4 ) International 478 460 3.9 1,496 1,334 12.1 Worldwide 823 813 1.2 2,502 2,354 6.3 EDURANT ® / rilpivirine U.S. 13 15 (13.3 ) 42 44 (4.5 ) International 189 179 5.6 581 478 21.5 Worldwide 202 194 4.1 623 522 19.3 PREZISTA ® / PREZCOBIX ® / REZOLSTA ® / SYMTUZA ® U.S. 297 287 3.5 847 824 2.8 International 193 180 7.2 613 527 16.3 Worldwide 490 467 4.9 1,460 1,351 8.1 OTHER INFECTIOUS DISEASES U.S. 35 51 (31.4 ) 117 152 (23.0 ) International 96 101 (5.0 ) 302 329 (8.2 ) Worldwide 131 152 (13.8 ) 419 481 (12.9 ) Neuroscience U.S. 651 647 0.6 1,914 1,931 (0.9 ) International 839 851 (1.4 ) 2,663 2,531 5.2 Worldwide 1,490 1,498 (0.5 ) 4,577 4,462 2.6 CONCERTA ® / Methylphenidate U.S. 57 100 (43.0 ) 191 284 (32.7 ) International 100 98 2.0 322 304 5.9 Worldwide 157 198 (20.7 ) 513 588 (12.8 ) INVEGA SUSTENNA ® / XEPLION ® / TRINZA ® / TREVICTA ® U.S. 468 395 18.5 1,306 1,154 13.2 International 281 248 13.3 859 722 19.0 Worldwide 749 643 16.5 2,165 1,876 15.4 RISPERDAL CONSTA ® U.S. 76 87 (12.6 ) 238 273 (12.8 ) International 99 107 (7.5 ) 321 335 (4.2 ) Worldwide 175 194 (9.8 ) 559 608 (8.1 ) OTHER NEUROSCIENCE U.S. 50 65 (23.1 ) 179 220 (18.6 ) International 359 398 (9.8 ) 1,161 1,170 (0.8 ) Worldwide 409 463 (11.7 ) 1,340 1,390 (3.6 ) Oncology U.S. 1,250 846 47.8 3,268 2,207 48.1 International 1,338 1,052 27.2 4,087 3,012 35.7 Worldwide 2,588 1,898 36.4 7,355 5,219 40.9 DARZALEX ® U.S. 318 230 38.3 880 643 36.9 International 180 87 * 561 228 * Worldwide 498 317 57.1 1,441 871 65.4 IMBRUVICA ® U.S. 334 230 45.2 811 622 30.4 International 371 282 31.6 1,101 749 47.0 Worldwide 705 512 37.7 1,912 1,371 39.5 VELCADE ® U.S. — — — — — — International 271 273 (0.7 ) 864 843 2.5 Worldwide 271 273 (0.7 ) 864 843 2.5 ZYTIGA ® U.S. 527 352 49.7 1,420 826 71.9 International 431 317 36.0 1,292 924 39.8 Worldwide 958 669 43.2 2,712 1,750 55.0 OTHER ONCOLOGY U.S. 71 34 * 157 116 35.3 International 85 93 (8.6 ) 269 268 0.4 Worldwide 156 127 22.8 426 384 10.9 Pulmonary Hypertension U.S. 425 371 14.6 1,215 408 * International 231 261 (11.5) 691 309 * Worldwide 656 632 3.8 1,906 717 * OPSUMIT ® U.S. 182 150 21.3 511 174 * International 128 109 17.4 381 130 * Worldwide 310 259 19.7 892 304 * TRACLEER ® U.S. 69 83 (16.9) 208 85 * International 70 127 (44.9) 214 151 * Worldwide 139 210 (33.8) 422 236 * UPTRAVI ® U.S. 154 113 36.3 433 121 * International 17 11 54.5 49 12 * Worldwide 171 124 37.9 482 133 * OTHER U.S. 20 25 (20.0) 63 28 * International 16 14 14.3 47 16 * Worldwide 36 39 (7.7) 110 44 * Cardiovascular / Metabolism / Other U.S. 1,026 1,179 (13.0 ) 3,230 3,488 (7.4 ) International 365 406 (10.1 ) 1,196 1,177 1.6 Worldwide 1,391 1,585 (12.2 ) 4,426 4,665 (5.1 ) XARELTO ® U.S. 612 635 (3.6 ) 1,869 1,790 4.4 International — — — — — — Worldwide 612 635 (3.6 ) 1,869 1,790 4.4 INVOKANA ® / INVOKAMET ® U.S. 150 220 (31.8 ) 523 723 (27.7 ) International 40 45 (11.1 ) 130 121 7.4 Worldwide 190 265 (28.3 ) 653 844 (22.6 ) PROCRIT ® / EPREX ® U.S. 178 168 6.0 523 511 2.3 International 77 70 10.0 244 229 6.6 Worldwide 255 238 7.1 767 740 3.6 OTHER U.S. 86 156 (44.9 ) 315 464 (32.1 ) International 248 291 (14.8 ) 822 827 (0.6 ) Worldwide 334 447 (25.3 ) 1,137 1,291 (11.9 ) TOTAL PHARMACEUTICAL U.S. 6,097 5,816 4.8 17,350 15,698 10.5 International 4,249 3,879 9.5 13,194 10,877 21.3 Worldwide 10,346 9,695 6.7 30,544 26,575 14.9 MEDICAL DEVICES Diabetes Care U.S. 125 168 (25.6 ) 371 482 (23.0 ) International 190 237 (19.8 ) 638 743 (14.1 ) Worldwide 315 405 (22.2 ) 1,009 1,225 (17.6 ) Diagnostics U.S. — — — — — — International — — — — 1 * Worldwide — — — — 1 * Interventional Solutions U.S. 320 279 14.7 947 843 12.3 International 333 274 21.5 1,013 832 21.8 Worldwide 653 553 18.1 1,960 1,675 17.0 Orthopaedics U.S. 1,284 1,308 (1.8 ) 3,923 4,034 (2.8 ) International 827 896 (7.7 ) 2,700 2,738 (1.4 ) Worldwide 2,111 2,204 (4.2 ) 6,623 6,772 (2.2 ) HIPS U.S. 201 195 3.1 621 612 1.5 International 129 133 (3.0 ) 432 418 3.3 Worldwide 330 328 0.6 1,053 1,030 2.2 KNEES U.S. 215 220 (2.3 ) 672 702 (4.3 ) International 126 123 2.4 438 424 3.3 Worldwide 341 343 (0.6 ) 1,110 1,126 (1.4 ) TRAUMA U.S. 395 398 (0.8 ) 1,196 1,179 1.4 International 259 264 (1.9 ) 829 768 7.9 Worldwide 654 662 (1.2 ) 2,025 1,947 4.0 SPINE & OTHER U.S. 473 495 (4.4 ) 1,434 1,541 (6.9 ) International 313 376 (16.8 ) 1,001 1,128 (11.3 ) Worldwide 786 871 (9.8 ) 2,435 2,669 (8.8 ) Surgery U.S. 1,016 1,002 1.4 3,031 3,009 0.7 International 1,360 1,344 1.2 4,283 3,992 7.3 Worldwide 2,376 2,346 1.3 7,314 7,001 4.5 ADVANCED U.S. 421 398 5.8 1,216 1,190 2.2 International 555 525 5.7 1,731 1,543 12.2 Worldwide 976 923 5.7 2,947 2,733 7.8 GENERAL U.S. 423 430 (1.6 ) 1,282 1,276 0.5 International 657 675 (2.7 ) 2,094 2,017 3.8 Worldwide 1,080 1,105 (2.3 ) 3,376 3,293 2.5 SPECIALTY U.S. 172 174 (1.1 ) 533 543 (1.8 ) International 148 144 2.8 458 432 6.0 Worldwide 320 318 0.6 991 975 1.6 Vision U.S. 452 432 4.6 1,351 1,142 18.3 International 680 659 3.2 2,069 1,802 14.8 Worldwide 1,132 1,091 3.8 3,420 2,944 16.2 CONTACT LENSES / OTHER U.S. 319 302 5.6 948 832 13.9 International 516 498 3.6 1,538 1,404 9.5 Worldwide 835 800 4.4 2,486 2,236 11.2 SURGICAL U.S. 133 130 2.3 403 310 30.0 International 164 161 1.9 531 398 33.4 Worldwide 297 291 2.1 934 708 31.9 TOTAL MEDICAL DEVICES U.S. 3,197 3,189 0.3 9,623 9,510 1.2 International 3,390 3,410 (0.6 ) 10,703 10,108 5.9 Worldwide 6,587 6,599 (0.2 ) 20,326 19,618 3.6 WORLDWIDE U.S. 10,664 10,290 3.6 31,255 29,394 6.3 International 9,684 9,360 3.5 29,932 26,861 11.4 Worldwide $ 20,348 19,650 3.6 % $ 61,187 56,255 8.8 % *Percentage greater than 100% or not meaningful |
Operating Profit by Segment of Business | EARNINGS BEFORE PROVISION FOR TAXES BY SEGMENT Fiscal Third Quarters Ended Fiscal Nine Months Ended (Dollars in Millions) September 30, October 1, Percent Change September 30, October 1, Percent Change Consumer (1) $ 510 878 (41.9 )% $ 1,887 2,132 (11.5 )% Pharmaceutical (2) 2,876 2,857 0.7 10,193 9,934 2.6 Medical Devices (3) 1,267 1,383 (8.4 ) 3,642 3,938 (7.5 ) Segment earnings before provision for taxes 4,653 5,118 (9.1 ) 15,722 16,004 (1.8 ) Less: Expense not allocated to segments (4) 230 328 845 891 Worldwide income before tax $ 4,423 4,790 (7.7 )% $ 14,877 15,113 (1.6 )% (1) Includes a gain of $0.3 billion from the divestiture of NIZORAL ® in the fiscal nine months of 2018. Includes a gain of $0.4 billion from the divestiture of COMPEED ® in the fiscal third quarter and fiscal nine months of 2017. Includes amortization expense of $0.1 billion in the fiscal third quarters and $0.2 billion in fiscal nine months of 2018 and 2017. (2) Includes an in-process research and development charge of $1.1 billion related to the Alios and XO1 assets and the corresponding XO1 contingent liability reversal of $0.2 billion in the fiscal third quarter and fiscal nine months of 2018. Includes Actelion acquisition related costs of $0.4 billion in the fiscal third quarter of 2017. Includes Actelion acquisition related costs of $0.2 billion and $0.6 billion in the fiscal nine months of 2018 and 2017, respectively. Includes a gain of $0.1 billion from the divestiture of PANCREASE ® in the fiscal nine months of 2018. Includes a gain of $0.2 billion related to monetization of future royalty receivables in the fiscal nine months of 2017. Includes a gain of $0.3 billion in the fiscal nine months of 2017 related to the sale of certain investments in equity securities held by Johnson & Johnson Innovation - JJDC, Inc. Includes litigation expense of $0.1 billion in the fiscal nine months of 2017. Includes amortization expense of $0.7 billion in the fiscal third quarters of 2018 and 2017. Includes amortization expense of $2.3 billion and $0.9 billion in the fiscal nine months of 2018 and 2017, respectively. (3) Includes a restructuring related charge of $0.2 billion and $0.2 billion in the fiscal third quarters of 2018 and 2017, respectively. Includes a restructuring related charge of $0.4 billion and $0.5 billion in the fiscal nine months of 2018 and 2017, respectively. Includes litigation expense of $0.1 billion in the fiscal third quarter of 2017. Includes litigation expense of $0.7 billion and $0.5 billion in the fiscal nine months of 2018 and 2017, respectively. Includes an asset impairment of $0.2 billion primarily related to the insulin pump business in the fiscal nine months of 2017. Includes amortization expense of $0.3 billion and $0.3 billion in the fiscal third quarters of 2018 and 2017, respectively. Includes amortization expense of $0.8 billion and $0.8 billion in the fiscal nine months of 2018 and 2017, respectively. (4) Amounts not allocated to segments include interest income/expense and general corporate income/expense. |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | SALES BY GEOGRAPHIC AREA Fiscal Third Quarters Ended Fiscal Nine Months Ended (Dollars in Millions) September 30, 2018 October 1, 2017 Percent Change September 30, 2018 October 1, 2017 Percent Change United States $ 10,664 10,290 3.6 % $ 31,255 29,394 6.3 % Europe 4,416 4,308 2.5 14,023 12,398 13.1 Western Hemisphere, excluding U.S. 1,550 1,569 (1.2 ) 4,657 4,522 3.0 Asia-Pacific, Africa 3,718 3,483 6.7 11,252 9,941 13.2 Total $ 20,348 19,650 3.6 % $ 61,187 56,255 8.8 % |
Business Combinations and Div_2
Business Combinations and Divestitures (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Schedule of Preliminary Amounts Recognized for Assets Acquired and Liabilities Assumed | The following table presents the amounts recognized for assets acquired and liabilities assumed as of the acquisition date with adjustments made through the second quarter of 2018: (Dollars in Millions) Cash & Cash equivalents 469 Inventory (1) 759 Accounts Receivable 485 Other current assets 93 Property, plant and equipment 104 Goodwill 6,161 Intangible assets 25,010 Deferred Taxes 99 Other non-current assets 19 Total Assets Acquired 33,199 Current liabilities 956 Deferred Taxes 1,776 Other non-current liabilities 413 Total Liabilities Assumed 3,145 Net Assets Acquired 30,054 (1) Includes adjustment of $642 million to write-up the acquired inventory to its estimated fair value. |
Purchase Price Allocation of Identifiable Intangible Assets | The purchase price allocation to the identifiable intangible assets is as follows: (Dollars in Millions) Intangible assets with definite lives: Patents and trademarks* $ 24,230 Total amortizable intangibles 24,230 In-process research and development 780 Total intangible assets $ 25,010 *Includes $0.4 billion related to VALCHLOR ® , one of the acquired products, which was divested in the fiscal second quarter of 2018. |
Schedule of Pro Forma Results | The following table provides pro forma results of operations for the fiscal nine months ended October 1, 2017 as if Actelion had been acquired as of January 4, 2016. The pro forma results include the effect of certain purchase accounting adjustments such as the estimated changes in depreciation and amortization expense on the acquired tangible and intangible assets. However, pro forma results do not include any anticipated cost savings or other effects of the planned integration of Actelion. Accordingly, such amounts are not necessarily indicative of the results if the acquisition had occurred on the dates indicated or which may occur in the future. Unaudited Pro forma Consolidated Results (Dollars in Millions Except Per Share Data) Fiscal Nine Months Ended October 1, 2017 Net Sales $ 57,486 Net Earnings 11,909 Diluted Net Earnings per Common Share $ 4.34 |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve | The following table summarizes the severance related reserves and the associated spending under these restructuring programs through the fiscal nine months of 2018: (Dollars in Millions) Severance Asset Write-offs Other** Total Reserve balance, December 31, 2017 $ 229 — 38 267 Current year activity: Charges — 100 373 473 Cash payments (29 ) — (388 ) (417 ) Settled non cash — (100 ) — (100 ) Reserve balance, September 30, 2018* $ 200 — 23 223 *Cash outlays for severance are expected to be substantially paid out over the next 2 years in accordance with the Company's plans and local laws. **Other includes project expense such as salaries for employees supporting the initiative and consulting expenses. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | Sep. 30, 2018 | Jan. 01, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Assets | $ 157,303 | $ 155,703 | |||
Sales return reserve (as a percent) | 1.00% | 1.00% | 1.00% | ||
Other assets | $ 4,971 | 4,465 | |||
Retained earnings | $ 101,793 | $ 107,617 | |||
ASU 2016-16 - Income Taxes: Intra-Entity Transfers | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred taxes | $ 2,000 | ||||
Other assets | (700) | ||||
Retained earnings | 1,300 | ||||
AOCI Attributable to Parent | ASU 2016-01 - Financial Instruments | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative effect adjustment | (232) | ||||
Retained Earnings | Accounting Standards Update 2014-09 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative effect adjustment | (47) | ||||
Retained Earnings | ASU 2016-01 - Financial Instruments | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative effect adjustment | 232 | ||||
Retained Earnings | ASU 2016-16 - Income Taxes: Intra-Entity Transfers | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative effect adjustment | $ 1,311 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Schedule of Impact of Adoption (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Oct. 01, 2017 | Sep. 30, 2018 | Oct. 01, 2017 | Dec. 31, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Net earnings | $ 3,934 | $ 3,764 | $ 12,255 | $ 12,013 | |
Sales to customers | 20,348 | $ 19,650 | 61,187 | $ 56,255 | |
Assets | 155,703 | 155,703 | $ 157,303 | ||
Liabilities | 91,077 | 91,077 | 97,143 | ||
Equity | 64,626 | 64,626 | $ 60,160 | ||
Balance without adoption of ASC 606 | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Net earnings | 3,953 | 12,241 | |||
Sales to customers | 20,370 | 61,169 | |||
Assets | 155,727 | 155,727 | |||
Liabilities | 91,070 | 91,070 | |||
Equity | 64,657 | 64,657 | |||
Accounting Standards Update 2014-09 | Effect of change | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Net earnings | 19 | (14) | |||
Sales to customers | 22 | (18) | |||
Assets | 24 | 24 | |||
Liabilities | (7) | (7) | |||
Equity | $ 31 | $ 31 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Adjustments for Accounting Standards Update 2017-07 (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Oct. 01, 2017 | Sep. 30, 2018 | Oct. 01, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cost of products sold | $ 6,589 | $ 6,925 | $ 20,130 | $ 18,180 |
Selling, marketing and administrative expenses | 5,543 | 5,423 | 16,549 | 15,475 |
Research and development expense | 2,508 | 2,585 | 7,551 | 6,951 |
Other (income) expense, net | 3 | (297) | 427 | 11 |
Earnings before provision for taxes on income | $ 4,423 | 4,790 | $ 14,877 | 15,113 |
Accounting Standards Update 2017-07 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cost of products sold | 23 | 69 | ||
Selling, marketing and administrative expenses | 27 | 80 | ||
Research and development expense | 11 | 32 | ||
Other (income) expense, net | (61) | (181) | ||
Earnings before provision for taxes on income | $ 0 | $ 0 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Cumulative Effect Adjustments (Details) - Retained Earnings $ in Millions | Jan. 01, 2018USD ($) |
Adjustments for New Accounting Pronouncement | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect adjustment | $ 1,496 |
ASU 2014-09 - Revenue from Contracts with Customers | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect adjustment | (47) |
ASU 2016-01 - Financial Instruments | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect adjustment | 232 |
ASU 2016-16 - Income Taxes: Intra-Entity Transfers | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect adjustment | $ 1,311 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Summary of Inventories | ||
Raw materials and supplies | $ 1,202 | $ 1,140 |
Goods in process | 1,986 | 2,317 |
Finished goods | 5,490 | 5,308 |
Total inventories | 8,678 | $ 8,765 |
LifeScan | Discontinued Operations, Held-for-sale or Disposed of by Sale | ||
Summary of Inventories | ||
Disposal group inventory | 100 | |
AdvancedSterilizationProducts | Discontinued Operations, Held-for-sale or Disposed of by Sale | ||
Summary of Inventories | ||
Disposal group inventory | 200 | |
Assets held for sale, current | 200 | |
Supply Chain | Discontinued Operations, Held-for-sale or Disposed of by Sale | ||
Summary of Inventories | ||
Assets held for sale, current | $ 300 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Intangible assets with indefinite lives: | ||
Indefinite-Lived Intangible Assets | $ 9,228 | $ 11,283 |
Total intangible assets - net | 48,637 | 53,228 |
Trademarks | ||
Intangible assets with indefinite lives: | ||
Indefinite-Lived Intangible Assets | 7,002 | 7,082 |
Purchased In-Process Research And Development | ||
Intangible assets with indefinite lives: | ||
Indefinite-Lived Intangible Assets | 2,226 | 4,201 |
Patents And Trademarks | ||
Intangible assets with definite lives: | ||
Finite-Lived Intangible Assets, Gross | 35,478 | 36,427 |
Less accumulated amortization | 9,077 | 7,223 |
Finite-Lived Intangible Assets, Net | 26,401 | 29,204 |
Customer relationships and other intangible assets | ||
Intangible assets with definite lives: | ||
Finite-Lived Intangible Assets, Gross | 21,176 | 20,204 |
Less accumulated amortization | 8,168 | 7,463 |
Finite-Lived Intangible Assets, Net | 13,008 | $ 12,741 |
Alios Biopharma Inc and XO1 Limited | Purchased In-Process Research And Development | ||
Intangible assets with indefinite lives: | ||
Indefinite-Lived Intangible Assets | 1,100 | |
Impairment charge | 800 | |
XO1 | Purchased In-Process Research And Development | ||
Intangible assets with indefinite lives: | ||
Impairment charge | $ 300 |
Goodwill By Segment (Details)
Goodwill By Segment (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Goodwill [Roll Forward] | |
Goodwill Beginning of Period | $ 31,906 |
Goodwill, related to acquisitions | 428 |
Goodwill, related to divestitures | (1,246) |
Currency translation/Other | (386) |
Goodwill End of Period | 30,702 |
CONSUMER | |
Goodwill [Roll Forward] | |
Goodwill Beginning of Period | 8,875 |
Goodwill, related to acquisitions | 169 |
Goodwill, related to divestitures | 0 |
Currency translation/Other | (304) |
Goodwill End of Period | 8,740 |
PHARMACEUTICAL | |
Goodwill [Roll Forward] | |
Goodwill Beginning of Period | 9,109 |
Goodwill, related to acquisitions | 51 |
Goodwill, related to divestitures | 0 |
Currency translation/Other | (48) |
Goodwill End of Period | 9,112 |
Medical Devices | |
Goodwill [Roll Forward] | |
Goodwill Beginning of Period | 13,922 |
Goodwill, related to acquisitions | 208 |
Goodwill, related to divestitures | (1,246) |
Currency translation/Other | (34) |
Goodwill End of Period | $ 12,850 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2018 | Oct. 01, 2017 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 4,400 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 4,400 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 4,400 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 4,400 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 4,400 | ||
Intangible Assets and Goodwill (Textuals) | |||
Amortization expense of amortizable intangible assets | 3,300 | $ 1,900 | |
Goodwill | 30,702 | $ 31,906 | |
Patents And Trademarks | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Net | $ 26,401 | 29,204 | |
Intangible Assets and Goodwill (Textuals) | |||
Finite-Lived Intangible Assets, Weighted-Average Useful Life | 11 years | ||
Customer relationships and other intangible assets | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Net | $ 13,008 | 12,741 | |
Intangible Assets and Goodwill (Textuals) | |||
Finite-Lived Intangible Assets, Weighted-Average Useful Life | 22 years | ||
PHARMACEUTICAL | |||
Intangible Assets and Goodwill (Textuals) | |||
Goodwill | $ 9,112 | 9,109 | |
Medical Devices | |||
Intangible Assets and Goodwill (Textuals) | |||
Goodwill | 12,850 | $ 13,922 | |
Patents And Trademarks | LifeScan | |||
Finite-Lived Intangible Assets [Line Items] | |||
Disposal Group, Including Discontinued Operation, Other Assets, Noncurrent | 100 | ||
Goodwill | LifeScan | |||
Finite-Lived Intangible Assets [Line Items] | |||
Disposal Group, Including Discontinued Operation, Other Assets, Noncurrent | 1,000 | ||
Goodwill | AdvancedSterilizationProducts | |||
Finite-Lived Intangible Assets [Line Items] | |||
Disposal Group, Including Discontinued Operation, Other Assets, Noncurrent | $ 200 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Oct. 01, 2017 | Sep. 30, 2018 | Oct. 01, 2017 | Dec. 31, 2017 | Jan. 01, 2018 | |
Derivative [Line Items] | ||||||
Available-for-sale Securities, Equity Securities | $ 697 | $ 697 | $ 751 | |||
Accumulated other comprehensive income on derivatives, after tax | 16 | $ 16 | ||||
Reclassification of foreign exchange contracts into earnings, period | next 12 months | |||||
Maximum length of time for hedge exposure | 18 months | |||||
Unrealized gains on equity investments | $ 0 | $ 14 | $ 0 | $ 150 | ||
Weighted average interest rate on non-current debt | 3.20% | 3.20% | ||||
Excess of the estimated fair value over the carrying value of debt | 2,000 | |||||
Foreign exchange contracts | ||||||
Derivative [Line Items] | ||||||
Collateral Already Posted, Aggregate Fair Value | $ 153 | $ 153 | ||||
Derivative notional amounts outstanding | 38,800 | 38,800 | 34,500 | |||
Cross currency interest rate swaps | ||||||
Derivative [Line Items] | ||||||
Derivative notional amounts outstanding | 7,300 | 7,300 | 2,300 | |||
Interest Rate Contract [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative Liability, Noncurrent | 6 | 6 | 9 | |||
Derivative notional amounts outstanding | 1,100 | 1,100 | 1,100 | |||
Equity Securities | ||||||
Derivative [Line Items] | ||||||
Available-for-sale Securities, Equity Securities | $ 697 | 697 | $ 751 | |||
Equity Investments without readily determinable value | Equity Securities | ||||||
Derivative [Line Items] | ||||||
Equity, Fair Value Adjustment, Impairment Loss | (31) | |||||
Changes in fair value, changes in observable prices | $ 38 | |||||
Equity Investments with readily determinable value | Equity Securities | ||||||
Derivative [Line Items] | ||||||
Unrealized gains on equity investments | $ 269 | |||||
Retained Earnings | ASU 2016-01 - Financial Instruments | ||||||
Derivative [Line Items] | ||||||
Cumulative effect adjustment | $ 232 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Derivative Activity (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Oct. 01, 2017 | Sep. 30, 2018 | Oct. 01, 2017 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Unrealized gain (loss) arising during period | $ 262 | $ 62 | $ 37 | $ (8) | |
Other (income) expense | |||||
Summary of designated derivatives | |||||
Gain/ (Loss) reclassified from Accumulated OCI into income | 0 | 0 | 0 | 0 | |
Interest Rate Contract [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, Notional Amount | 1,100 | 1,100 | $ 1,100 | ||
Foreign exchange contracts | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Collateral Already Posted, Aggregate Fair Value | 153 | 153 | |||
Derivative, Notional Amount | 38,800 | 38,800 | 34,500 | ||
Cross currency interest rate swaps | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, Notional Amount | 7,300 | 7,300 | $ 2,300 | ||
Fair Value Hedging | Interest Rate Contract [Member] | Sales to customers | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | 0 | 0 | 0 | 0 | |
Fair Value Hedging | Interest Rate Contract [Member] | Cost of products sold | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | 0 | 0 | 0 | 0 | |
Fair Value Hedging | Interest Rate Contract [Member] | Research and Development Expense | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | 0 | 0 | 0 | 0 | |
Fair Value Hedging | Interest Rate Contract [Member] | Investment Income (Expense) | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | (6) | ||||
Fair Value Hedging | Interest Rate Contract [Member] | Other (income) expense | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | 0 | 0 | 0 | 0 | |
Fair Value Hedging | Interest Rate Contract [Member] | Interest (income)/Interest expense, net | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | (7) | (4) | 3 | ||
Fair Value Hedging | Cross currency interest rate swaps | Sales to customers | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | 0 | 0 | 0 | 0 | |
Unrealized gain (loss) arising during period | 0 | 0 | 0 | 0 | |
Fair Value Hedging | Cross currency interest rate swaps | Cost of products sold | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | 0 | 0 | 0 | 0 | |
Unrealized gain (loss) arising during period | 0 | 0 | 0 | 0 | |
Fair Value Hedging | Cross currency interest rate swaps | Research and Development Expense | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | 0 | 0 | 0 | 0 | |
Unrealized gain (loss) arising during period | 0 | 0 | 0 | 0 | |
Fair Value Hedging | Cross currency interest rate swaps | Other (income) expense | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | 0 | 0 | 0 | 0 | |
Unrealized gain (loss) arising during period | 0 | 0 | 0 | 0 | |
Fair Value Hedging | Cross currency interest rate swaps | Interest (income)/Interest expense, net | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | 25 | 0 | 27 | 0 | |
Unrealized gain (loss) arising during period | 25 | 0 | 27 | 0 | |
Fair Value Hedging | Designated as Hedging Instrument | Interest Rate Contract [Member] | Sales to customers | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | 0 | 0 | 0 | 0 | |
Fair Value Hedging | Designated as Hedging Instrument | Interest Rate Contract [Member] | Cost of products sold | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | 0 | 0 | 0 | 0 | |
Fair Value Hedging | Designated as Hedging Instrument | Interest Rate Contract [Member] | Research and Development Expense | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | 0 | 0 | 0 | 0 | |
Fair Value Hedging | Designated as Hedging Instrument | Interest Rate Contract [Member] | Investment Income (Expense) | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | 6 | ||||
Fair Value Hedging | Designated as Hedging Instrument | Interest Rate Contract [Member] | Other (income) expense | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | 0 | 0 | 0 | 0 | |
Fair Value Hedging | Designated as Hedging Instrument | Interest Rate Contract [Member] | Interest (income)/Interest expense, net | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | 7 | 4 | (3) | ||
Cash Flow Hedging | Foreign exchange contracts | Sales to customers | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Unrealized gain (loss) arising during period | 15 | 18 | (3) | 40 | |
Summary of designated derivatives | |||||
Gain/ (Loss) reclassified from Accumulated OCI into income | 4 | 5 | 50 | (34) | |
Cash Flow Hedging | Foreign exchange contracts | Cost of products sold | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Unrealized gain (loss) arising during period | 192 | (16) | 138 | 105 | |
Summary of designated derivatives | |||||
Gain/ (Loss) reclassified from Accumulated OCI into income | 97 | (63) | 175 | (162) | |
Cash Flow Hedging | Foreign exchange contracts | Research and Development Expense | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Unrealized gain (loss) arising during period | (4) | (39) | (220) | (167) | |
Summary of designated derivatives | |||||
Gain/ (Loss) reclassified from Accumulated OCI into income | 10 | (30) | (242) | (131) | |
Cash Flow Hedging | Foreign exchange contracts | Other (income) expense | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Unrealized gain (loss) arising during period | (1) | (15) | (16) | (59) | |
Summary of designated derivatives | |||||
Gain/ (Loss) reclassified from Accumulated OCI into income | (3) | (49) | (24) | (86) | |
Cash Flow Hedging | Foreign exchange contracts | Interest (income)/Interest expense, net | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Unrealized gain (loss) arising during period | 0 | 0 | 0 | 0 | |
Summary of designated derivatives | |||||
Gain/ (Loss) reclassified from Accumulated OCI into income | 0 | 0 | 0 | 0 | |
Cash Flow Hedging | Cross currency interest rate swaps | Sales to customers | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Unrealized gain (loss) arising during period | 0 | 0 | 0 | 0 | |
Summary of designated derivatives | |||||
Gain/ (Loss) reclassified from Accumulated OCI into income | 0 | 0 | 0 | 0 | |
Cash Flow Hedging | Cross currency interest rate swaps | Cost of products sold | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Unrealized gain (loss) arising during period | 0 | 0 | 0 | 0 | |
Summary of designated derivatives | |||||
Gain/ (Loss) reclassified from Accumulated OCI into income | 0 | 0 | 0 | ||
Cash Flow Hedging | Cross currency interest rate swaps | Research and Development Expense | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Unrealized gain (loss) arising during period | 0 | 0 | 0 | 0 | |
Summary of designated derivatives | |||||
Gain/ (Loss) reclassified from Accumulated OCI into income | 0 | 0 | 0 | 0 | |
Cash Flow Hedging | Cross currency interest rate swaps | Other (income) expense | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Unrealized gain (loss) arising during period | 0 | 0 | 0 | 0 | |
Summary of designated derivatives | |||||
Gain/ (Loss) reclassified from Accumulated OCI into income | 0 | 0 | 0 | 0 | |
Cash Flow Hedging | Cross currency interest rate swaps | Interest (income)/Interest expense, net | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Unrealized gain (loss) arising during period | 35 | 114 | 111 | 73 | |
Summary of designated derivatives | |||||
Gain/ (Loss) reclassified from Accumulated OCI into income | $ 34 | $ 106 | $ 106 | $ 63 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Derivatives Recorded in Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Carrying Amount of the Hedged Liability | $ 272 | $ 367 |
Current Portion of Long-term Debt | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Carrying Amount of the Hedged Liability | 601 | 597 |
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liability | 1 | 2 |
Long-term Debt [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Carrying Amount of the Hedged Liability | 495 | 496 |
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liability | $ (4) | $ 3 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Activity Related to Equity Investments (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Equity Investment [Roll Forward] | ||
Non Current Other Assets | $ 4,465 | $ 4,971 |
Equity Securities | Equity Investments with readily determinable value | ||
Equity Investment [Roll Forward] | ||
Carrying value, beginning of period | 751 | |
Changes in Fair Value Reflected in Net Income | (35) | |
Sales/ Purchases/Other | (19) | |
Carrying value, end of period | 697 | |
Non Current Other Assets | 697 | |
Equity Securities | Equity Investments without readily determinable value | ||
Equity Investment [Roll Forward] | ||
Carrying value, beginning of period | 510 | |
Changes in Fair Value Reflected in Net Income | 7 | |
Sales/ Purchases/Other | 122 | |
Carrying value, end of period | 639 | |
Non Current Other Assets | $ 639 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities at Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Financial assets and liabilities at fair value | ||
Derivatives designated as hedging instruments : Assets | $ 570 | |
Derivatives designated as hedging instruments : Liabilities | 670 | |
Available-for-sale Securities, Equity Securities | 697 | $ 751 |
Available-for-sale Securities | 11,155 | 5,310 |
Total Gross Assets | 598 | 463 |
Credit Support Agreement (CSA) | (290) | (76) |
Total Net Asset | 308 | 387 |
Total Gross Liabilities | 715 | 605 |
Credit Support Agreement (CSA) | (443) | (238) |
Total Net Liabilities | 272 | 367 |
Quoted prices in active markets for identical assets and liabilities Level 1 | ||
Financial assets and liabilities at fair value | ||
Derivatives designated as hedging instruments : Assets | 0 | |
Derivatives designated as hedging instruments : Liabilities | 0 | |
Available-for-sale Securities, Equity Securities | 697 | 751 |
Available-for-sale Securities | 0 | |
Significant other observable inputs Level 2 | ||
Financial assets and liabilities at fair value | ||
Derivatives designated as hedging instruments : Assets | 570 | 425 |
Derivatives designated as hedging instruments : Liabilities | 670 | 567 |
Available-for-sale Securities, Equity Securities | 0 | |
Available-for-sale Securities | 11,155 | |
Significant unobservable inputs Level 3 | ||
Financial assets and liabilities at fair value | ||
Derivatives designated as hedging instruments : Assets | 0 | |
Derivatives designated as hedging instruments : Liabilities | 0 | |
Available-for-sale Securities, Equity Securities | 0 | |
Available-for-sale Securities | 0 | |
Interest Rate Contract [Member] | ||
Financial assets and liabilities at fair value | ||
Derivative, Notional Amount | 1,100 | 1,100 |
Derivatives designated as hedging instruments : Assets | 19 | |
Derivatives designated as hedging instruments : Liabilities | 269 | |
Derivative Assets, Noncurrent | 4 | 7 |
Derivative Liabilities, Noncurrent - interest swap | 6 | 9 |
Interest Rate Contract [Member] | Quoted prices in active markets for identical assets and liabilities Level 1 | ||
Financial assets and liabilities at fair value | ||
Derivatives designated as hedging instruments : Assets | 0 | |
Derivatives designated as hedging instruments : Liabilities | 0 | |
Interest Rate Contract [Member] | Significant other observable inputs Level 2 | ||
Financial assets and liabilities at fair value | ||
Derivatives designated as hedging instruments : Assets | 19 | 7 |
Derivatives designated as hedging instruments : Liabilities | 269 | 165 |
Interest Rate Contract [Member] | Significant unobservable inputs Level 3 | ||
Financial assets and liabilities at fair value | ||
Derivatives designated as hedging instruments : Assets | 0 | |
Derivatives designated as hedging instruments : Liabilities | 0 | |
Foreign exchange contracts | ||
Financial assets and liabilities at fair value | ||
Derivative, Notional Amount | 38,800 | 34,500 |
Derivatives designated as hedging instruments : Assets | 551 | |
Derivatives designated as hedging instruments : Liabilities | 401 | |
Derivatives not designated as hedging instruments : Assets | 28 | |
Derivatives not designated as hedging instruments : Liabilities | 45 | |
Foreign exchange contracts | Quoted prices in active markets for identical assets and liabilities Level 1 | ||
Financial assets and liabilities at fair value | ||
Derivatives designated as hedging instruments : Assets | 0 | |
Derivatives designated as hedging instruments : Liabilities | 0 | |
Derivatives not designated as hedging instruments : Assets | 0 | |
Derivatives not designated as hedging instruments : Liabilities | 0 | |
Foreign exchange contracts | Significant other observable inputs Level 2 | ||
Financial assets and liabilities at fair value | ||
Derivatives designated as hedging instruments : Assets | 551 | 418 |
Derivatives designated as hedging instruments : Liabilities | 401 | 402 |
Derivatives not designated as hedging instruments : Assets | 28 | 38 |
Derivatives not designated as hedging instruments : Liabilities | 45 | 38 |
Foreign exchange contracts | Significant unobservable inputs Level 3 | ||
Financial assets and liabilities at fair value | ||
Derivatives designated as hedging instruments : Assets | 0 | |
Derivatives designated as hedging instruments : Liabilities | 0 | |
Derivatives not designated as hedging instruments : Assets | 0 | |
Derivatives not designated as hedging instruments : Liabilities | 0 | |
Cross currency interest rate swaps | ||
Financial assets and liabilities at fair value | ||
Derivative, Notional Amount | 7,300 | 2,300 |
Equity Securities | ||
Financial assets and liabilities at fair value | ||
Available-for-sale Securities, Equity Securities | $ 697 | $ 751 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Effect of Derivatives not Designated as Hedging Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Oct. 01, 2017 | Sep. 30, 2018 | Oct. 01, 2017 | |
Not Designated as Hedging Instrument | Foreign exchange contracts | Other (income) expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain/(Loss) Recognized In Income on Derivative | $ 49 | $ (12) | $ (23) | $ 22 |
Fair Value Measurements - Sch_3
Fair Value Measurements - Schedule of Effect of Net Investment Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Oct. 01, 2017 | Sep. 30, 2018 | Oct. 01, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain/(Loss) Recognized In Accumulated OCI | $ (50) | $ (151) | $ 106 | $ (529) |
Sale of Subsidiary Gain (Loss) [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain/(Loss) Reclassified From Accumulated OCI Into Income | 0 | 0 | 0 | 0 |
Other Income Expense Net [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain/(Loss) Reclassified From Accumulated OCI Into Income | 0 | 0 | 0 | 0 |
Cross Currency Interest Rate Contract [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain/(Loss) Recognized In Accumulated OCI | $ (75) | $ 0 | $ (37) | $ 0 |
Fair Value Measurements - Cash,
Fair Value Measurements - Cash, Cash Equivalents and Marketable Securities (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | Oct. 01, 2017 | Jan. 01, 2017 |
Available-for-sale Securities [Abstract] | ||||
Available-for-sale Securities - Estimated Fair Value | $ 11,155 | $ 5,310 | ||
Available-for-sale Securities and Held-to-maturity Securities [Abstract] | ||||
Cash and Cash Equivalents | 16,056 | 17,824 | $ 15,721 | $ 18,972 |
Marketable securities | 3,308 | $ 472 | ||
Held-to-maturity Securities | ||||
Held-to-maturity Securities [Abstract] | ||||
Held-to-maturity Securities - Carrying Amount | 8,209 | |||
Held-to-maturity Securities - Estimated Fair Value | 8,209 | |||
Available-for-sale Securities and Held-to-maturity Securities [Abstract] | ||||
Cash and Cash Equivalents | 8,209 | |||
Marketable securities | 0 | |||
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | 0 | |||
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | 0 | |||
Held-to-maturity Securities | Cash | ||||
Held-to-maturity Securities [Abstract] | ||||
Held-to-maturity Securities - Carrying Amount | 2,575 | |||
Held-to-maturity Securities - Estimated Fair Value | 2,575 | |||
Available-for-sale Securities and Held-to-maturity Securities [Abstract] | ||||
Cash and Cash Equivalents | 2,575 | |||
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | 0 | |||
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | 0 | |||
Held-to-maturity Securities | Other sovereign securities(1) | ||||
Held-to-maturity Securities [Abstract] | ||||
Held-to-maturity Securities - Carrying Amount | 0 | |||
Held-to-maturity Securities - Estimated Fair Value | 0 | |||
Available-for-sale Securities and Held-to-maturity Securities [Abstract] | ||||
Cash and Cash Equivalents | 0 | |||
Marketable securities | ||||
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | 0 | |||
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | 0 | |||
Held-to-maturity Securities | U.S. reverse repurchase agreements | ||||
Held-to-maturity Securities [Abstract] | ||||
Held-to-maturity Securities - Carrying Amount | 2,260 | |||
Held-to-maturity Securities - Estimated Fair Value | 2,260 | |||
Available-for-sale Securities and Held-to-maturity Securities [Abstract] | ||||
Cash and Cash Equivalents | 2,260 | |||
Marketable securities | ||||
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | 0 | |||
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | 0 | |||
Held-to-maturity Securities | Other reverse repurchase agreements | ||||
Held-to-maturity Securities [Abstract] | ||||
Held-to-maturity Securities - Carrying Amount | 479 | |||
Held-to-maturity Securities - Estimated Fair Value | 479 | |||
Available-for-sale Securities and Held-to-maturity Securities [Abstract] | ||||
Cash and Cash Equivalents | 479 | |||
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | 0 | |||
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | 0 | |||
Held-to-maturity Securities | Corporate debt securities(1) | ||||
Held-to-maturity Securities [Abstract] | ||||
Held-to-maturity Securities - Carrying Amount | 200 | |||
Held-to-maturity Securities - Estimated Fair Value | 200 | |||
Available-for-sale Securities and Held-to-maturity Securities [Abstract] | ||||
Cash and Cash Equivalents | 200 | |||
Marketable securities | 0 | |||
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | 0 | |||
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | 0 | |||
Held-to-maturity Securities | Money market funds | ||||
Held-to-maturity Securities [Abstract] | ||||
Held-to-maturity Securities - Carrying Amount | 1,763 | |||
Held-to-maturity Securities - Estimated Fair Value | 1,763 | |||
Available-for-sale Securities and Held-to-maturity Securities [Abstract] | ||||
Cash and Cash Equivalents | 1,763 | |||
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | 0 | |||
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | 0 | |||
Held-to-maturity Securities | Time deposits(1) | ||||
Held-to-maturity Securities [Abstract] | ||||
Held-to-maturity Securities - Carrying Amount | 932 | |||
Held-to-maturity Securities - Estimated Fair Value | 932 | |||
Available-for-sale Securities and Held-to-maturity Securities [Abstract] | ||||
Cash and Cash Equivalents | 932 | |||
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | 0 | |||
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | 0 | |||
Available-for-sale Securities | ||||
Available-for-sale Securities [Abstract] | ||||
Available-for-sale Securities - Carrying Amount | 11,156 | |||
Available-for-sale Securities - Estimated Fair Value | 11,155 | |||
Available-for-sale Securities and Held-to-maturity Securities [Abstract] | ||||
Cash and Cash Equivalents | 7,847 | |||
Marketable securities | 3,308 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 1 | |||
Available-for-sale Securities | Other sovereign securities(1) | ||||
Available-for-sale Securities [Abstract] | ||||
Available-for-sale Securities - Carrying Amount | 0 | |||
Available-for-sale Securities - Estimated Fair Value | 0 | |||
Available-for-sale Securities and Held-to-maturity Securities [Abstract] | ||||
Cash and Cash Equivalents | 0 | |||
Marketable securities | 0 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | |||
Available-for-sale Securities | Corporate debt securities(1) | ||||
Available-for-sale Securities [Abstract] | ||||
Available-for-sale Securities - Carrying Amount | 271 | |||
Available-for-sale Securities - Estimated Fair Value | 271 | |||
Available-for-sale Securities and Held-to-maturity Securities [Abstract] | ||||
Cash and Cash Equivalents | 12 | |||
Marketable securities | 259 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | |||
Available-for-sale Securities | US Treasury and Government [Member] | ||||
Available-for-sale Securities [Abstract] | ||||
Available-for-sale Securities - Carrying Amount | 10,885 | |||
Available-for-sale Securities - Estimated Fair Value | 10,884 | |||
Available-for-sale Securities and Held-to-maturity Securities [Abstract] | ||||
Cash and Cash Equivalents | 7,835 | |||
Marketable securities | 3,049 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | $ 1 |
Fair Value Measurements - Sch_4
Fair Value Measurements - Schedule of Available for Sale Securities Maturities (Details) $ in Millions | Sep. 30, 2018USD ($) |
Cost Basis | |
Due within one year | $ 11,079 |
Due after one year through five years | 77 |
Due after five years through ten years | 0 |
Total debt securities | 11,156 |
Fair Value | |
Due within one year | 11,078 |
Due after one year through five years | 77 |
Due after five years through ten years | 0 |
Total debt securities | $ 11,155 |
Fair Value Measurements - Fin_2
Fair Value Measurements - Financial Liabilities not Measured at Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Financial Liabilities | ||
Current Debt | $ 1,773 | $ 3,906 |
Non-Current Debt | ||
Non-Current Debt | 29,480 | $ 30,675 |
Carrying Amount | ||
Financial Liabilities | ||
Current Debt | 1,773 | |
Non-Current Debt | ||
Non-Current Debt | 29,480 | |
Estimated Fair Value | ||
Financial Liabilities | ||
Current Debt | 1,773 | |
Non-Current Debt | ||
Non-Current Debt | $ 29,938 | |
4.75% Notes due 2019 (1B Euro 1.1681) | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 4.75% | |
4.75% Notes due 2019 (1B Euro 1.1681) | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 1,166 | |
4.75% Notes due 2019 (1B Euro 1.1681) | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 1,231 | |
1.875% Notes due 2019 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 1.875% | |
1.875% Notes due 2019 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 495 | |
1.875% Notes due 2019 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 490 | |
3% Zero Coupon Convertible Subordinated Debentures due in 2020 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 3.00% | |
3% Zero Coupon Convertible Subordinated Debentures due in 2020 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 52 | |
3% Zero Coupon Convertible Subordinated Debentures due in 2020 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 100 | |
1.950% Notes due 2020 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 1.95% | |
1.950% Notes due 2020 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 499 | |
1.950% Notes due 2020 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 490 | |
2.95% Debentures due 2020 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 2.95% | |
2.95% Debentures due 2020 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 548 | |
2.95% Debentures due 2020 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 551 | |
3.55% Notes due 2021 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 3.55% | |
3.55% Notes due 2021 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 448 | |
3.55% Notes due 2021 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 454 | |
2.45% Notes due 2021 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 2.45% | |
2.45% Notes due 2021 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 349 | |
2.45% Notes due 2021 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 345 | |
1.65% Notes due 2021 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 1.65% | |
1.65% Notes due 2021 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 998 | |
1.65% Notes due 2021 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 967 | |
0.250% Notes due 2022 (1B Euro 1.1681) | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 0.25% | |
0.250% Notes due 2022 (1B Euro 1.1681) | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 1,165 | |
0.250% Notes due 2022 (1B Euro 1.1681) | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 1,172 | |
2.25% Notes due 2022 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 2.25% | |
2.25% Notes due 2022 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 996 | |
2.25% Notes due 2022 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 973 | |
6.73% Debentures due 2023 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 6.73% | |
6.73% Debentures due 2023 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 250 | |
6.73% Debentures due 2023 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 291 | |
3.375% Notes due 2023 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 3.375% | |
3.375% Notes due 2023 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 805 | |
3.375% Notes due 2023 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 829 | |
2.05% Notes due 2023 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 2.05% | |
2.05% Notes due 2023 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 498 | |
2.05% Notes due 2023 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 477 | |
0.650% Notes due 2024 (750MM Euro 1.1681) | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 0.65% | |
0.650% Notes due 2024 (750MM Euro 1.1681) | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 872 | |
0.650% Notes due 2024 (750MM Euro 1.1681) | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 881 | |
5.50% Notes due 2024 (500 MM GBP 1.3123) | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 5.50% | |
5.50% Notes due 2024 (500 MM GBP 1.3123) | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 651 | |
5.50% Notes due 2024 (500 MM GBP 1.3123) | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 793 | |
2.625% Notes due 2025 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 2.625% | |
2.625% Notes due 2025 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 748 | |
2.625% Notes due 2025 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 719 | |
2.45% Notes due 2026 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 2.45% | |
2.45% Notes due 2026 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 1,991 | |
2.45% Notes due 2026 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 1,884 | |
2.95% Notes due 2027 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 2.95% | |
2.95% Notes due 2027 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 996 | |
2.95% Notes due 2027 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 956 | |
2.90% Notes due 2028 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 2.90% | |
2.90% Notes due 2028 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 1,493 | |
2.90% Notes due 2028 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 1,420 | |
1.150% Notes due 2028 (750MM Euro 1.1681) | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 1.15% | |
1.150% Notes due 2028 (750MM Euro 1.1681) | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 868 | |
1.150% Notes due 2028 (750MM Euro 1.1681) | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 874 | |
6.95% Notes due 2029 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 6.95% | |
6.95% Notes due 2029 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 296 | |
6.95% Notes due 2029 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 385 | |
4.95% Debentures due 2033 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 4.95% | |
4.95% Debentures due 2033 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 498 | |
4.95% Debentures due 2033 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 559 | |
4.375% Notes due 2033 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 4.375% | |
4.375% Notes due 2033 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 856 | |
4.375% Notes due 2033 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 912 | |
1.650% Notes due 2035 (1.5B Euro 1.1681) | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 1.65% | |
1.650% Notes due 2035 (1.5B Euro 1.1681) | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 1,735 | |
1.650% Notes due 2035 (1.5B Euro 1.1681) | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 1,774 | |
3.55% Notes due 2036 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 3.55% | |
3.55% Notes due 2036 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 988 | |
3.55% Notes due 2036 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 945 | |
5.95% Notes due 2037 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 5.95% | |
5.95% Notes due 2037 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 991 | |
5.95% Notes due 2037 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 1,252 | |
3.625% Notes due 2037 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 3.625% | |
3.625% Notes due 2037 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 1,486 | |
3.625% Notes due 2037 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 1,433 | |
3.40% Notes due 2038 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 3.40% | |
3.40% Notes due 2038 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 990 | |
3.40% Notes due 2038 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 926 | |
5.85% Debentures due 2038 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 5.85% | |
5.85% Debentures due 2038 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 696 | |
5.85% Debentures due 2038 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 874 | |
4.50% Debentures due 2040 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 4.50% | |
4.50% Debentures due 2040 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 538 | |
4.50% Debentures due 2040 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 573 | |
4.85% Notes due 2041 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 4.85% | |
4.85% Notes due 2041 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 297 | |
4.85% Notes due 2041 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 330 | |
4.50% Notes due 2043 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 4.50% | |
4.50% Notes due 2043 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 495 | |
4.50% Notes due 2043 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 532 | |
3.70% Notes due 2046 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 3.70% | |
3.70% Notes due 2046 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 1,971 | |
3.70% Notes due 2046 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 1,884 | |
3.75% Notes due 2047 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 3.75% | |
3.75% Notes due 2047 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 991 | |
3.75% Notes due 2047 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 951 | |
3.50% Notes due 2048 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 3.50% | |
3.50% Notes due 2048 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 742 | |
3.50% Notes due 2048 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | 689 | |
Other | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | 22 | |
Other | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 22 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Billions | 1 Months Ended | 9 Months Ended | |
Dec. 31, 2017 | Sep. 30, 2018 | Oct. 01, 2017 | |
Income Tax (Textuals) | |||
Worldwide effective income tax rate (as a percent) | 17.60% | 20.50% | |
Provisional tax cost | $ 13 | ||
Effective income tax rate adjustment business combination (as a percent) | 1.40% | ||
Excess tax benefit from share based compensation | 1.20% | 2.10% | |
Accelerated deduction (as a percent) | 2.00% | ||
Estimated tax impact, foreign taxes (as a percent) | 2.50% | ||
Increase to the transition tax on undistributed foreign earnings | $ 0.1 | ||
Deferred tax liability foreign earnings | 0.3 | ||
Deferred tax assets offset | 0.2 | ||
Unrecognized tax benefits | $ 3.2 | ||
Foreign Tax Authority | |||
Income Tax (Textuals) | |||
Change in enacted rate (as a percent) | 2.50% | ||
Domestic Tax Authority | |||
Income Tax (Textuals) | |||
Change in enacted rate (as a percent) | 0.40% |
Pensions and Other Benefit Pl_3
Pensions and Other Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Oct. 01, 2017 | Sep. 30, 2018 | Oct. 01, 2017 | |
Retirement Plans | ||||
Components of net periodic benefit cost | ||||
Service cost | $ 307 | $ 266 | $ 925 | $ 772 |
Interest cost | 247 | 232 | 748 | 693 |
Expected return on plan assets | (550) | (514) | (1,664) | (1,528) |
Amortization of prior service cost/(credit) | 1 | 1 | 2 | 2 |
Recognized actuarial losses | 213 | 154 | 641 | 456 |
Curtailments and settlements | 0 | 2 | (2) | 1 |
Net periodic benefit cost | 218 | 141 | 650 | 396 |
Other Benefit Plans | ||||
Components of net periodic benefit cost | ||||
Service cost | 67 | 62 | 202 | 185 |
Interest cost | 37 | 40 | 112 | 119 |
Expected return on plan assets | (1) | (2) | (5) | (5) |
Amortization of prior service cost/(credit) | (7) | (8) | (23) | (23) |
Recognized actuarial losses | 31 | 34 | 92 | 103 |
Curtailments and settlements | 0 | 0 | 0 | 0 |
Net periodic benefit cost | $ 127 | $ 126 | $ 378 | $ 379 |
Pensions and Other Benefit Pl_4
Pensions and Other Benefit Plans (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2018USD ($) | |
U.S. retirement plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Contribution to pension plans | $ 656 |
International retirement plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Contribution to pension plans | $ 28 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Oct. 01, 2017 | Sep. 30, 2018 | Oct. 01, 2017 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 60,160 | |||
Net change | $ 130 | $ 487 | (1,216) | $ 2,154 |
Ending balance | 64,626 | 64,626 | ||
Accumulated Foreign Currency Adjustment Attributable to Parent | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (7,351) | |||
Net change | (1,718) | |||
Ending balance | (9,069) | (9,069) | ||
Accumulated Net Investment Gain (Loss) Attributable to Parent | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | 232 | |||
Net change | (1) | |||
Cumulative adjustment to retained earnings | (232) | |||
Ending balance | (1) | (1) | ||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (6,150) | |||
Net change | 557 | |||
Ending balance | (5,593) | (5,593) | ||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | 70 | |||
Net change | (54) | |||
Ending balance | 16 | 16 | ||
AOCI Attributable to Parent | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (13,199) | |||
Net change | (1,216) | |||
Cumulative adjustment to retained earnings | (232) | |||
Ending balance | $ (14,647) | $ (14,647) |
Earnings Per Share (Details)
Earnings Per Share (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Oct. 01, 2017 | Sep. 30, 2018 | Oct. 01, 2017 | |
Reconciliation of basic net earnings per share to diluted net earnings per share | ||||
Basic net earnings per share | $ 1.47 | $ 1.40 | $ 4.57 | $ 4.46 |
Average shares outstanding — basic | 2,683,200,000 | 2,684,600,000 | 2,682,600,000 | 2,694,400,000 |
Potential shares exercisable under stock option plans | 140,300,000 | 139,300,000 | 140,900,000 | 141,200,000 |
Less: shares which could be repurchased under treasury stock method | (96,700,000) | (87,200,000) | (94,700,000) | (90,200,000) |
Convertible debt shares | 800,000 | 1,000,000 | 800,000 | 1,000,000 |
Average shares outstanding — diluted | 2,727,600,000 | 2,737,700,000 | 2,729,600,000 | 2,746,400,000 |
Diluted net earnings per share | $ 1.44 | $ 1.37 | $ 4.49 | $ 4.37 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 | 0 | 0 |
Segments of Business and Geog_3
Segments of Business and Geographic Areas - Sales By Segment Of Business (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Oct. 01, 2017 | Sep. 30, 2018 | Oct. 01, 2017 | |
Sales by segment of business | ||||
Sales to customers | $ 20,348 | $ 19,650 | $ 61,187 | $ 56,255 |
Percent Change (as a percent) | 3.60% | 8.80% | ||
U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 10,664 | 10,290 | $ 31,255 | 29,394 |
Percent Change (as a percent) | 3.60% | 6.30% | ||
International | ||||
Sales by segment of business | ||||
Sales to customers | $ 9,684 | 9,360 | $ 29,932 | 26,861 |
Percent Change (as a percent) | 3.50% | 11.40% | ||
CONSUMER | ||||
Sales by segment of business | ||||
Sales to customers | $ 3,415 | 3,356 | $ 10,317 | 10,062 |
Percent Change (as a percent) | 1.80% | 2.50% | ||
CONSUMER | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 1,370 | 1,285 | $ 4,282 | 4,186 |
Percent Change (as a percent) | 6.60% | 2.30% | ||
CONSUMER | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 2,045 | 2,071 | $ 6,035 | 5,876 |
Percent Change (as a percent) | (1.30%) | 2.70% | ||
CONSUMER | Baby Care | ||||
Sales by segment of business | ||||
Sales to customers | $ 472 | 477 | $ 1,385 | 1,426 |
Percent Change (as a percent) | (1.00%) | (2.90%) | ||
CONSUMER | Baby Care | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 120 | 100 | $ 306 | 326 |
Percent Change (as a percent) | 20.00% | (6.10%) | ||
CONSUMER | Baby Care | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 352 | 377 | $ 1,079 | 1,100 |
Percent Change (as a percent) | (6.60%) | (1.90%) | ||
CONSUMER | Beauty | ||||
Sales by segment of business | ||||
Sales to customers | $ 1,078 | 1,033 | $ 3,271 | 3,090 |
Percent Change (as a percent) | 4.40% | 5.90% | ||
CONSUMER | Beauty | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 543 | 523 | $ 1,791 | 1,739 |
Percent Change (as a percent) | 3.80% | 3.00% | ||
CONSUMER | Beauty | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 535 | 510 | $ 1,480 | 1,351 |
Percent Change (as a percent) | 4.90% | 9.50% | ||
CONSUMER | Oral Care | ||||
Sales by segment of business | ||||
Sales to customers | $ 384 | 382 | $ 1,156 | 1,138 |
Percent Change (as a percent) | 0.50% | 1.60% | ||
CONSUMER | Oral Care | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 158 | 154 | $ 472 | 460 |
Percent Change (as a percent) | 2.60% | 2.60% | ||
CONSUMER | Oral Care | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 226 | 228 | $ 684 | 678 |
Percent Change (as a percent) | (0.90%) | 0.90% | ||
CONSUMER | OTC | ||||
Sales by segment of business | ||||
Sales to customers | $ 1,048 | 1,002 | $ 3,186 | 3,021 |
Percent Change (as a percent) | 4.60% | 5.50% | ||
CONSUMER | OTC | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 440 | 401 | $ 1,359 | 1,310 |
Percent Change (as a percent) | 9.70% | 3.70% | ||
CONSUMER | OTC | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 608 | 601 | $ 1,827 | 1,711 |
Percent Change (as a percent) | 1.20% | 6.80% | ||
CONSUMER | Women's Health | ||||
Sales by segment of business | ||||
Sales to customers | $ 269 | 270 | $ 792 | 788 |
Percent Change (as a percent) | (0.40%) | 0.50% | ||
CONSUMER | Women's Health | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 3 | 3 | $ 10 | 9 |
Percent Change (as a percent) | 0.00% | 11.10% | ||
CONSUMER | Women's Health | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 266 | 267 | $ 782 | 779 |
Percent Change (as a percent) | (0.40%) | 0.40% | ||
CONSUMER | Wound Care/Other | ||||
Sales by segment of business | ||||
Sales to customers | $ 164 | 192 | $ 527 | 599 |
Percent Change (as a percent) | (14.60%) | (12.00%) | ||
CONSUMER | Wound Care/Other | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 106 | 104 | $ 344 | 342 |
Percent Change (as a percent) | 1.90% | 0.60% | ||
CONSUMER | Wound Care/Other | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 58 | 88 | $ 183 | 257 |
Percent Change (as a percent) | (34.10%) | (28.80%) | ||
PHARMACEUTICAL | ||||
Sales by segment of business | ||||
Sales to customers | $ 10,346 | 9,695 | $ 30,544 | 26,575 |
Percent Change (as a percent) | 6.70% | 14.90% | ||
PHARMACEUTICAL | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 6,097 | 5,816 | $ 17,350 | 15,698 |
Percent Change (as a percent) | 4.80% | 10.50% | ||
PHARMACEUTICAL | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 4,249 | 3,879 | $ 13,194 | 10,877 |
Percent Change (as a percent) | 9.50% | 21.30% | ||
PHARMACEUTICAL | Immunology | ||||
Sales by segment of business | ||||
Sales to customers | $ 3,398 | 3,269 | $ 9,778 | 9,158 |
Percent Change (as a percent) | 3.90% | 6.80% | ||
PHARMACEUTICAL | Immunology | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 2,400 | 2,420 | $ 6,717 | 6,644 |
Percent Change (as a percent) | (0.80%) | 1.10% | ||
PHARMACEUTICAL | Immunology | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 998 | 849 | $ 3,061 | 2,514 |
Percent Change (as a percent) | 17.60% | 21.80% | ||
PHARMACEUTICAL | Immunology | REMICADE® | ||||
Sales by segment of business | ||||
Sales to customers | $ 1,379 | 1,647 | $ 4,088 | 4,849 |
Percent Change (as a percent) | (16.30%) | (15.70%) | ||
PHARMACEUTICAL | Immunology | REMICADE® | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 987 | 1,206 | $ 2,821 | 3,452 |
Percent Change (as a percent) | (18.20%) | (18.30%) | ||
PHARMACEUTICAL | Immunology | REMICADE® | U.S. Exports | ||||
Sales by segment of business | ||||
Sales to customers | $ 100 | 156 | $ 346 | 448 |
Percent Change (as a percent) | (35.90%) | (22.80%) | ||
PHARMACEUTICAL | Immunology | REMICADE® | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 292 | 285 | $ 921 | 949 |
Percent Change (as a percent) | 2.50% | (3.00%) | ||
PHARMACEUTICAL | Immunology | SIMPONI / SIMPONI ARIA® | ||||
Sales by segment of business | ||||
Sales to customers | $ 536 | 476 | $ 1,602 | 1,343 |
Percent Change (as a percent) | 12.60% | 19.30% | ||
PHARMACEUTICAL | Immunology | SIMPONI / SIMPONI ARIA® | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 281 | 242 | $ 779 | 701 |
Percent Change (as a percent) | 16.10% | 11.10% | ||
PHARMACEUTICAL | Immunology | SIMPONI / SIMPONI ARIA® | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 255 | 234 | $ 823 | 642 |
Percent Change (as a percent) | 9.00% | 28.20% | ||
PHARMACEUTICAL | Immunology | STELARA® | ||||
Sales by segment of business | ||||
Sales to customers | $ 1,310 | 1,124 | $ 3,712 | 2,930 |
Percent Change (as a percent) | 16.50% | 26.70% | ||
PHARMACEUTICAL | Immunology | STELARA® | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 889 | 800 | $ 2,460 | 2,027 |
Percent Change (as a percent) | 11.10% | 21.40% | ||
PHARMACEUTICAL | Immunology | STELARA® | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 421 | 324 | $ 1,252 | 903 |
Percent Change (as a percent) | 29.90% | 38.60% | ||
PHARMACEUTICAL | Immunology | OTHER IMMUNOLOGY | ||||
Sales by segment of business | ||||
Sales to customers | $ 173 | 22 | $ 376 | 36 |
PHARMACEUTICAL | Immunology | OTHER IMMUNOLOGY | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | 143 | 16 | 311 | 16 |
PHARMACEUTICAL | Immunology | OTHER IMMUNOLOGY | International | ||||
Sales by segment of business | ||||
Sales to customers | 30 | 6 | 65 | 20 |
PHARMACEUTICAL | Infectious Diseases | ||||
Sales by segment of business | ||||
Sales to customers | $ 823 | 813 | $ 2,502 | 2,354 |
Percent Change (as a percent) | 1.20% | 6.30% | ||
PHARMACEUTICAL | Infectious Diseases | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 345 | 353 | $ 1,006 | 1,020 |
Percent Change (as a percent) | (2.30%) | (1.40%) | ||
PHARMACEUTICAL | Infectious Diseases | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 478 | 460 | $ 1,496 | 1,334 |
Percent Change (as a percent) | 3.90% | 12.10% | ||
PHARMACEUTICAL | Infectious Diseases | EDURANT® / rilpivirine | ||||
Sales by segment of business | ||||
Sales to customers | $ 202 | 194 | $ 623 | 522 |
Percent Change (as a percent) | 4.10% | 19.30% | ||
PHARMACEUTICAL | Infectious Diseases | EDURANT® / rilpivirine | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 13 | 15 | $ 42 | 44 |
Percent Change (as a percent) | (13.30%) | (4.50%) | ||
PHARMACEUTICAL | Infectious Diseases | EDURANT® / rilpivirine | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 189 | 179 | $ 581 | 478 |
Percent Change (as a percent) | 5.60% | 21.50% | ||
PHARMACEUTICAL | Infectious Diseases | PREZISTA® / PREZCOBIX® / REZOLSTA® / SYMTUZA® | ||||
Sales by segment of business | ||||
Sales to customers | $ 490 | 467 | $ 1,460 | 1,351 |
Percent Change (as a percent) | 4.90% | 8.10% | ||
PHARMACEUTICAL | Infectious Diseases | PREZISTA® / PREZCOBIX® / REZOLSTA® / SYMTUZA® | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 297 | 287 | $ 847 | 824 |
Percent Change (as a percent) | 3.50% | 2.80% | ||
PHARMACEUTICAL | Infectious Diseases | PREZISTA® / PREZCOBIX® / REZOLSTA® / SYMTUZA® | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 193 | 180 | $ 613 | 527 |
Percent Change (as a percent) | 7.20% | 16.30% | ||
PHARMACEUTICAL | Infectious Diseases | OTHER INFECTIOUS DISEASES | ||||
Sales by segment of business | ||||
Sales to customers | $ 131 | 152 | $ 419 | 481 |
Percent Change (as a percent) | (13.80%) | (12.90%) | ||
PHARMACEUTICAL | Infectious Diseases | OTHER INFECTIOUS DISEASES | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 35 | 51 | $ 117 | 152 |
Percent Change (as a percent) | (31.40%) | (23.00%) | ||
PHARMACEUTICAL | Infectious Diseases | OTHER INFECTIOUS DISEASES | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 96 | 101 | $ 302 | 329 |
Percent Change (as a percent) | (5.00%) | (8.20%) | ||
PHARMACEUTICAL | Neuroscience | ||||
Sales by segment of business | ||||
Sales to customers | $ 1,490 | 1,498 | $ 4,577 | 4,462 |
Percent Change (as a percent) | (0.50%) | 2.60% | ||
PHARMACEUTICAL | Neuroscience | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 651 | 647 | $ 1,914 | 1,931 |
Percent Change (as a percent) | 0.60% | (0.90%) | ||
PHARMACEUTICAL | Neuroscience | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 839 | 851 | $ 2,663 | 2,531 |
Percent Change (as a percent) | (1.40%) | 5.20% | ||
PHARMACEUTICAL | Neuroscience | CONCERTA® / Methylphenidate | ||||
Sales by segment of business | ||||
Sales to customers | $ 157 | 198 | $ 513 | 588 |
Percent Change (as a percent) | (20.70%) | (12.80%) | ||
PHARMACEUTICAL | Neuroscience | CONCERTA® / Methylphenidate | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 57 | 100 | $ 191 | 284 |
Percent Change (as a percent) | (43.00%) | (32.70%) | ||
PHARMACEUTICAL | Neuroscience | CONCERTA® / Methylphenidate | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 100 | 98 | $ 322 | 304 |
Percent Change (as a percent) | 2.00% | 5.90% | ||
PHARMACEUTICAL | Neuroscience | INVEGA SUSTENNA® / XEPLION® / TRINZA® / TREVICTA® | ||||
Sales by segment of business | ||||
Sales to customers | $ 749 | 643 | $ 2,165 | 1,876 |
Percent Change (as a percent) | 16.50% | 15.40% | ||
PHARMACEUTICAL | Neuroscience | INVEGA SUSTENNA® / XEPLION® / TRINZA® / TREVICTA® | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 468 | 395 | $ 1,306 | 1,154 |
Percent Change (as a percent) | 18.50% | 13.20% | ||
PHARMACEUTICAL | Neuroscience | INVEGA SUSTENNA® / XEPLION® / TRINZA® / TREVICTA® | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 281 | 248 | $ 859 | 722 |
Percent Change (as a percent) | 13.30% | 19.00% | ||
PHARMACEUTICAL | Neuroscience | RISPERDAL CONSTA® | ||||
Sales by segment of business | ||||
Sales to customers | $ 175 | 194 | $ 559 | 608 |
Percent Change (as a percent) | (9.80%) | (8.10%) | ||
PHARMACEUTICAL | Neuroscience | RISPERDAL CONSTA® | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 76 | 87 | $ 238 | 273 |
Percent Change (as a percent) | (12.60%) | (12.80%) | ||
PHARMACEUTICAL | Neuroscience | RISPERDAL CONSTA® | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 99 | 107 | $ 321 | 335 |
Percent Change (as a percent) | (7.50%) | (4.20%) | ||
PHARMACEUTICAL | Neuroscience | OTHER NEUROSCIENCE | ||||
Sales by segment of business | ||||
Sales to customers | $ 409 | 463 | $ 1,340 | 1,390 |
Percent Change (as a percent) | (11.70%) | (3.60%) | ||
PHARMACEUTICAL | Neuroscience | OTHER NEUROSCIENCE | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 50 | 65 | $ 179 | 220 |
Percent Change (as a percent) | (23.10%) | (18.60%) | ||
PHARMACEUTICAL | Neuroscience | OTHER NEUROSCIENCE | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 359 | 398 | $ 1,161 | 1,170 |
Percent Change (as a percent) | (9.80%) | (0.80%) | ||
PHARMACEUTICAL | Oncology | ||||
Sales by segment of business | ||||
Sales to customers | $ 2,588 | 1,898 | $ 7,355 | 5,219 |
Percent Change (as a percent) | 36.40% | 40.90% | ||
PHARMACEUTICAL | Oncology | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 1,250 | 846 | $ 3,268 | 2,207 |
Percent Change (as a percent) | 47.80% | 48.10% | ||
PHARMACEUTICAL | Oncology | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 1,338 | 1,052 | $ 4,087 | 3,012 |
Percent Change (as a percent) | 27.20% | 35.70% | ||
PHARMACEUTICAL | Oncology | DARZALEX® | ||||
Sales by segment of business | ||||
Sales to customers | $ 498 | 317 | $ 1,441 | 871 |
Percent Change (as a percent) | 57.10% | 65.40% | ||
PHARMACEUTICAL | Oncology | DARZALEX® | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 318 | 230 | $ 880 | 643 |
Percent Change (as a percent) | 38.30% | 36.90% | ||
PHARMACEUTICAL | Oncology | DARZALEX® | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 180 | 87 | $ 561 | 228 |
PHARMACEUTICAL | Oncology | IMBRUVICA® | ||||
Sales by segment of business | ||||
Sales to customers | $ 705 | 512 | $ 1,912 | 1,371 |
Percent Change (as a percent) | 37.70% | 39.50% | ||
PHARMACEUTICAL | Oncology | IMBRUVICA® | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 334 | 230 | $ 811 | 622 |
Percent Change (as a percent) | 45.20% | 30.40% | ||
PHARMACEUTICAL | Oncology | IMBRUVICA® | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 371 | 282 | $ 1,101 | 749 |
Percent Change (as a percent) | 31.60% | 47.00% | ||
PHARMACEUTICAL | Oncology | VELCADE® | ||||
Sales by segment of business | ||||
Sales to customers | $ 271 | 273 | $ 864 | 843 |
Percent Change (as a percent) | (0.70%) | 2.50% | ||
PHARMACEUTICAL | Oncology | VELCADE® | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 0 | 0 | $ 0 | 0 |
Percent Change (as a percent) | 0.00% | 0.00% | ||
PHARMACEUTICAL | Oncology | VELCADE® | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 271 | 273 | $ 864 | 843 |
Percent Change (as a percent) | (0.70%) | 2.50% | ||
PHARMACEUTICAL | Oncology | ZYTIGA® | ||||
Sales by segment of business | ||||
Sales to customers | $ 958 | 669 | $ 2,712 | 1,750 |
Percent Change (as a percent) | 43.20% | 55.00% | ||
PHARMACEUTICAL | Oncology | ZYTIGA® | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 527 | 352 | $ 1,420 | 826 |
Percent Change (as a percent) | 49.70% | 71.90% | ||
PHARMACEUTICAL | Oncology | ZYTIGA® | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 431 | 317 | $ 1,292 | 924 |
Percent Change (as a percent) | 36.00% | 39.80% | ||
PHARMACEUTICAL | Oncology | OTHER ONCOLOGY | ||||
Sales by segment of business | ||||
Sales to customers | $ 156 | 127 | $ 426 | 384 |
Percent Change (as a percent) | 22.80% | 10.90% | ||
PHARMACEUTICAL | Oncology | OTHER ONCOLOGY | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 71 | 34 | $ 157 | 116 |
Percent Change (as a percent) | 35.30% | |||
PHARMACEUTICAL | Oncology | OTHER ONCOLOGY | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 85 | 93 | $ 269 | 268 |
Percent Change (as a percent) | (8.60%) | 0.40% | ||
PHARMACEUTICAL | Pulmonary Hypertension | ||||
Sales by segment of business | ||||
Sales to customers | $ 656 | 632 | $ 1,906 | 717 |
Percent Change (as a percent) | 3.80% | |||
PHARMACEUTICAL | Pulmonary Hypertension | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 425 | 371 | 1,215 | 408 |
Percent Change (as a percent) | 14.60% | |||
PHARMACEUTICAL | Pulmonary Hypertension | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 231 | 261 | 691 | 309 |
Percent Change (as a percent) | (11.50%) | |||
PHARMACEUTICAL | Pulmonary Hypertension | OPSUMIT® | ||||
Sales by segment of business | ||||
Sales to customers | $ 310 | 259 | 892 | 304 |
Percent Change (as a percent) | 19.70% | |||
PHARMACEUTICAL | Pulmonary Hypertension | OPSUMIT® | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 182 | 150 | 511 | 174 |
Percent Change (as a percent) | 21.30% | |||
PHARMACEUTICAL | Pulmonary Hypertension | OPSUMIT® | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 128 | 109 | 381 | 130 |
Percent Change (as a percent) | 17.40% | |||
PHARMACEUTICAL | Pulmonary Hypertension | TRACLEER® | ||||
Sales by segment of business | ||||
Sales to customers | $ 139 | 210 | 422 | 236 |
Percent Change (as a percent) | (33.80%) | |||
PHARMACEUTICAL | Pulmonary Hypertension | TRACLEER® | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 69 | 83 | 208 | 85 |
Percent Change (as a percent) | (16.90%) | |||
PHARMACEUTICAL | Pulmonary Hypertension | TRACLEER® | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 70 | 127 | 214 | 151 |
Percent Change (as a percent) | (44.90%) | |||
PHARMACEUTICAL | Pulmonary Hypertension | UPTRAVI® | ||||
Sales by segment of business | ||||
Sales to customers | $ 171 | 124 | 482 | 133 |
Percent Change (as a percent) | 37.90% | |||
PHARMACEUTICAL | Pulmonary Hypertension | UPTRAVI® | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 154 | 113 | 433 | 121 |
Percent Change (as a percent) | 36.30% | |||
PHARMACEUTICAL | Pulmonary Hypertension | UPTRAVI® | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 17 | 11 | 49 | 12 |
Percent Change (as a percent) | 54.50% | |||
PHARMACEUTICAL | Pulmonary Hypertension | OTHER | ||||
Sales by segment of business | ||||
Sales to customers | $ 36 | 39 | 110 | 44 |
Percent Change (as a percent) | (7.70%) | |||
PHARMACEUTICAL | Pulmonary Hypertension | OTHER | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 20 | 25 | 63 | 28 |
Percent Change (as a percent) | (20.00%) | |||
PHARMACEUTICAL | Pulmonary Hypertension | OTHER | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 16 | 14 | 47 | 16 |
Percent Change (as a percent) | 14.30% | |||
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | ||||
Sales by segment of business | ||||
Sales to customers | $ 1,391 | 1,585 | $ 4,426 | 4,665 |
Percent Change (as a percent) | (12.20%) | (5.10%) | ||
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 1,026 | 1,179 | $ 3,230 | 3,488 |
Percent Change (as a percent) | (13.00%) | (7.40%) | ||
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 365 | 406 | $ 1,196 | 1,177 |
Percent Change (as a percent) | (10.10%) | 1.60% | ||
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | OTHER | ||||
Sales by segment of business | ||||
Sales to customers | $ 334 | 447 | $ 1,137 | 1,291 |
Percent Change (as a percent) | (25.30%) | (11.90%) | ||
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | OTHER | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 86 | 156 | $ 315 | 464 |
Percent Change (as a percent) | (44.90%) | (32.10%) | ||
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | OTHER | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 248 | 291 | $ 822 | 827 |
Percent Change (as a percent) | (14.80%) | (0.60%) | ||
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | XARELTO® | ||||
Sales by segment of business | ||||
Sales to customers | $ 612 | 635 | $ 1,869 | 1,790 |
Percent Change (as a percent) | (3.60%) | 4.40% | ||
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | XARELTO® | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 612 | 635 | $ 1,869 | 1,790 |
Percent Change (as a percent) | (3.60%) | 4.40% | ||
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | XARELTO® | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 0 | 0 | $ 0 | 0 |
Percent Change (as a percent) | 0.00% | 0.00% | ||
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | INVOKANA® / INVOKAMET® | ||||
Sales by segment of business | ||||
Sales to customers | $ 190 | 265 | $ 653 | 844 |
Percent Change (as a percent) | (28.30%) | (22.60%) | ||
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | INVOKANA® / INVOKAMET® | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 150 | 220 | $ 523 | 723 |
Percent Change (as a percent) | (31.80%) | (27.70%) | ||
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | INVOKANA® / INVOKAMET® | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 40 | 45 | $ 130 | 121 |
Percent Change (as a percent) | (11.10%) | 7.40% | ||
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | PROCRIT® / EPREX® | ||||
Sales by segment of business | ||||
Sales to customers | $ 255 | 238 | $ 767 | 740 |
Percent Change (as a percent) | 7.10% | 3.60% | ||
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | PROCRIT® / EPREX® | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 178 | 168 | $ 523 | 511 |
Percent Change (as a percent) | 6.00% | 2.30% | ||
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | PROCRIT® / EPREX® | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 77 | 70 | $ 244 | 229 |
Percent Change (as a percent) | 10.00% | 6.60% | ||
MEDICAL DEVICES | ||||
Sales by segment of business | ||||
Sales to customers | $ 6,587 | 6,599 | $ 20,326 | 19,618 |
Percent Change (as a percent) | (0.20%) | 3.60% | ||
MEDICAL DEVICES | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 3,197 | 3,189 | $ 9,623 | 9,510 |
Percent Change (as a percent) | 0.30% | 1.20% | ||
MEDICAL DEVICES | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 3,390 | 3,410 | $ 10,703 | 10,108 |
Percent Change (as a percent) | (0.60%) | 5.90% | ||
MEDICAL DEVICES | Diabetes Care | ||||
Sales by segment of business | ||||
Sales to customers | $ 315 | 405 | $ 1,009 | 1,225 |
Percent Change (as a percent) | (22.20%) | (17.60%) | ||
MEDICAL DEVICES | Diabetes Care | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 125 | 168 | $ 371 | 482 |
Percent Change (as a percent) | (25.60%) | (23.00%) | ||
MEDICAL DEVICES | Diabetes Care | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 190 | 237 | $ 638 | 743 |
Percent Change (as a percent) | (19.80%) | (14.10%) | ||
MEDICAL DEVICES | Diagnostics | ||||
Sales by segment of business | ||||
Sales to customers | $ 0 | 0 | $ 0 | 1 |
MEDICAL DEVICES | Diagnostics | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | 0 | 0 | 0 | 0 |
MEDICAL DEVICES | Diagnostics | International | ||||
Sales by segment of business | ||||
Sales to customers | 0 | 0 | 0 | 1 |
MEDICAL DEVICES | Interventional Solutions | ||||
Sales by segment of business | ||||
Sales to customers | $ 653 | 553 | $ 1,960 | 1,675 |
Percent Change (as a percent) | 18.10% | 17.00% | ||
MEDICAL DEVICES | Interventional Solutions | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 320 | 279 | $ 947 | 843 |
Percent Change (as a percent) | 14.70% | 12.30% | ||
MEDICAL DEVICES | Interventional Solutions | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 333 | 274 | $ 1,013 | 832 |
Percent Change (as a percent) | 21.50% | 21.80% | ||
MEDICAL DEVICES | Orthopaedics | ||||
Sales by segment of business | ||||
Sales to customers | $ 2,111 | 2,204 | $ 6,623 | 6,772 |
Percent Change (as a percent) | (4.20%) | (2.20%) | ||
MEDICAL DEVICES | Orthopaedics | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 1,284 | 1,308 | $ 3,923 | 4,034 |
Percent Change (as a percent) | (1.80%) | (2.80%) | ||
MEDICAL DEVICES | Orthopaedics | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 827 | 896 | $ 2,700 | 2,738 |
Percent Change (as a percent) | (7.70%) | (1.40%) | ||
MEDICAL DEVICES | Orthopaedics | HIPS | ||||
Sales by segment of business | ||||
Sales to customers | $ 330 | 328 | $ 1,053 | 1,030 |
Percent Change (as a percent) | 0.60% | 2.20% | ||
MEDICAL DEVICES | Orthopaedics | HIPS | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 201 | 195 | $ 621 | 612 |
Percent Change (as a percent) | 3.10% | 1.50% | ||
MEDICAL DEVICES | Orthopaedics | HIPS | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 129 | 133 | $ 432 | 418 |
Percent Change (as a percent) | (3.00%) | 3.30% | ||
MEDICAL DEVICES | Orthopaedics | KNEES | ||||
Sales by segment of business | ||||
Sales to customers | $ 341 | 343 | $ 1,110 | 1,126 |
Percent Change (as a percent) | (0.60%) | (1.40%) | ||
MEDICAL DEVICES | Orthopaedics | KNEES | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 215 | 220 | $ 672 | 702 |
Percent Change (as a percent) | (2.30%) | (4.30%) | ||
MEDICAL DEVICES | Orthopaedics | KNEES | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 126 | 123 | $ 438 | 424 |
Percent Change (as a percent) | 2.40% | 3.30% | ||
MEDICAL DEVICES | Orthopaedics | TRAUMA | ||||
Sales by segment of business | ||||
Sales to customers | $ 654 | 662 | $ 2,025 | 1,947 |
Percent Change (as a percent) | (1.20%) | 4.00% | ||
MEDICAL DEVICES | Orthopaedics | TRAUMA | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 395 | 398 | $ 1,196 | 1,179 |
Percent Change (as a percent) | (0.80%) | 1.40% | ||
MEDICAL DEVICES | Orthopaedics | TRAUMA | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 259 | 264 | $ 829 | 768 |
Percent Change (as a percent) | (1.90%) | 7.90% | ||
MEDICAL DEVICES | Orthopaedics | SPINE & OTHER | ||||
Sales by segment of business | ||||
Sales to customers | $ 786 | 871 | $ 2,435 | 2,669 |
Percent Change (as a percent) | (9.80%) | (8.80%) | ||
MEDICAL DEVICES | Orthopaedics | SPINE & OTHER | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 473 | 495 | $ 1,434 | 1,541 |
Percent Change (as a percent) | (4.40%) | (6.90%) | ||
MEDICAL DEVICES | Orthopaedics | SPINE & OTHER | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 313 | 376 | $ 1,001 | 1,128 |
Percent Change (as a percent) | (16.80%) | (11.30%) | ||
MEDICAL DEVICES | Surgery | ||||
Sales by segment of business | ||||
Sales to customers | $ 2,376 | 2,346 | $ 7,314 | 7,001 |
Percent Change (as a percent) | 1.30% | 4.50% | ||
MEDICAL DEVICES | Surgery | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 1,016 | 1,002 | $ 3,031 | 3,009 |
Percent Change (as a percent) | 1.40% | 0.70% | ||
MEDICAL DEVICES | Surgery | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 1,360 | 1,344 | $ 4,283 | 3,992 |
Percent Change (as a percent) | 1.20% | 7.30% | ||
MEDICAL DEVICES | Surgery | ADVANCED | ||||
Sales by segment of business | ||||
Sales to customers | $ 976 | 923 | $ 2,947 | 2,733 |
Percent Change (as a percent) | 5.70% | 7.80% | ||
MEDICAL DEVICES | Surgery | ADVANCED | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 421 | 398 | $ 1,216 | 1,190 |
Percent Change (as a percent) | 5.80% | 2.20% | ||
MEDICAL DEVICES | Surgery | ADVANCED | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 555 | 525 | $ 1,731 | 1,543 |
Percent Change (as a percent) | 5.70% | 12.20% | ||
MEDICAL DEVICES | Surgery | GENERAL | ||||
Sales by segment of business | ||||
Sales to customers | $ 1,080 | 1,105 | $ 3,376 | 3,293 |
Percent Change (as a percent) | (2.30%) | 2.50% | ||
MEDICAL DEVICES | Surgery | GENERAL | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 423 | 430 | $ 1,282 | 1,276 |
Percent Change (as a percent) | (1.60%) | 0.50% | ||
MEDICAL DEVICES | Surgery | GENERAL | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 657 | 675 | $ 2,094 | 2,017 |
Percent Change (as a percent) | (2.70%) | 3.80% | ||
MEDICAL DEVICES | Surgery | SPECIALTY | ||||
Sales by segment of business | ||||
Sales to customers | $ 320 | 318 | $ 991 | 975 |
Percent Change (as a percent) | 0.60% | 1.60% | ||
MEDICAL DEVICES | Surgery | SPECIALTY | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 172 | 174 | $ 533 | 543 |
Percent Change (as a percent) | (1.10%) | (1.80%) | ||
MEDICAL DEVICES | Surgery | SPECIALTY | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 148 | 144 | $ 458 | 432 |
Percent Change (as a percent) | 2.80% | 6.00% | ||
MEDICAL DEVICES | Vision | ||||
Sales by segment of business | ||||
Sales to customers | $ 1,132 | 1,091 | $ 3,420 | 2,944 |
Percent Change (as a percent) | 3.80% | 16.20% | ||
MEDICAL DEVICES | Vision | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 452 | 432 | $ 1,351 | 1,142 |
Percent Change (as a percent) | 4.60% | 18.30% | ||
MEDICAL DEVICES | Vision | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 680 | 659 | $ 2,069 | 1,802 |
Percent Change (as a percent) | 3.20% | 14.80% | ||
MEDICAL DEVICES | Vision | CONTACT LENSES / OTHER | ||||
Sales by segment of business | ||||
Sales to customers | $ 835 | 800 | $ 2,486 | 2,236 |
Percent Change (as a percent) | 4.40% | 11.20% | ||
MEDICAL DEVICES | Vision | CONTACT LENSES / OTHER | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 319 | 302 | $ 948 | 832 |
Percent Change (as a percent) | 5.60% | 13.90% | ||
MEDICAL DEVICES | Vision | CONTACT LENSES / OTHER | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 516 | 498 | $ 1,538 | 1,404 |
Percent Change (as a percent) | 3.60% | 9.50% | ||
MEDICAL DEVICES | Vision | SURGICAL | ||||
Sales by segment of business | ||||
Sales to customers | $ 297 | 291 | $ 934 | 708 |
Percent Change (as a percent) | 2.10% | 31.90% | ||
MEDICAL DEVICES | Vision | SURGICAL | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 133 | 130 | $ 403 | 310 |
Percent Change (as a percent) | 2.30% | 30.00% | ||
MEDICAL DEVICES | Vision | SURGICAL | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 164 | $ 161 | $ 531 | $ 398 |
Percent Change (as a percent) | 1.90% | 33.40% |
Segments of Business and Geog_4
Segments of Business and Geographic Areas - Operating Profit by Segment of Business (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Oct. 01, 2017 | Sep. 30, 2018 | Oct. 01, 2017 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||
Percentage Change in Operating Income Loss | (7.70%) | (1.60%) | |||
In process research and development charge | $ 9,228 | $ 9,228 | $ 11,283 | ||
Earnings before provision for taxes on income | 4,423 | $ 4,790 | 14,877 | $ 15,113 | |
Restructuring charges | 88 | 69 | 187 | 165 | |
Asset Impairment Charges | 1,226 | 309 | |||
PHARMACEUTICAL | |||||
Segment Reporting Information [Line Items] | |||||
Royalty monetization | 200 | ||||
Litigation expense | 100 | ||||
Medical Devices | |||||
Segment Reporting Information [Line Items] | |||||
Restructuring charges | 200 | 200 | 400 | 500 | |
Litigation expense | 100 | 700 | 500 | ||
Asset Impairment Charges | 200 | ||||
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Total Segment Operating Income | $ 4,653 | 5,118 | $ 15,722 | 16,004 | |
Percentage Change in Operating Income Loss | (9.10%) | (1.80%) | |||
Operating Segments | CONSUMER | |||||
Segment Reporting Information [Line Items] | |||||
Total Segment Operating Income | $ 510 | 878 | $ 1,887 | 2,132 | |
Percentage Change in Operating Income Loss | (41.90%) | (11.50%) | |||
Amortization | $ 100 | 100 | $ 200 | 200 | |
Operating Segments | PHARMACEUTICAL | |||||
Segment Reporting Information [Line Items] | |||||
Total Segment Operating Income | $ 2,876 | 2,857 | $ 10,193 | 9,934 | |
Percentage Change in Operating Income Loss | 0.70% | 2.60% | |||
Amortization | $ 700 | 700 | $ 2,300 | 900 | |
Acquisition related costs | 400 | ||||
Gain on sale of equity investments | 300 | ||||
Operating Segments | Medical Devices | |||||
Segment Reporting Information [Line Items] | |||||
Total Segment Operating Income | $ 1,267 | 1,383 | $ 3,642 | 3,938 | |
Percentage Change in Operating Income Loss | (8.40%) | (7.50%) | |||
Amortization | $ 300 | 300 | $ 800 | 800 | |
Corporate, Non-Segment | |||||
Segment Reporting Information [Line Items] | |||||
Total Segment Operating Income | 230 | 328 | 845 | 891 | |
XO1 | |||||
Segment Reporting Information [Line Items] | |||||
Contingent liability reversal | (200) | (200) | |||
Actelion | |||||
Segment Reporting Information [Line Items] | |||||
Acquisition related costs | 200 | ||||
Actelion | PHARMACEUTICAL | |||||
Segment Reporting Information [Line Items] | |||||
Acquisition related costs | 200 | 600 | |||
NIZORAL | Operating Segments | CONSUMER | |||||
Segment Reporting Information [Line Items] | |||||
Gain from divestiture | 300 | 300 | |||
Compeed | Operating Segments | CONSUMER | |||||
Segment Reporting Information [Line Items] | |||||
Gain from divestiture | $ 400 | $ 400 | |||
PANCREASE | Operating Segments | PHARMACEUTICAL | |||||
Segment Reporting Information [Line Items] | |||||
Gain from divestiture | 100 | 100 | |||
Purchased In-Process Research And Development | |||||
Segment Reporting Information [Line Items] | |||||
In process research and development charge | 2,226 | 2,226 | $ 4,201 | ||
Purchased In-Process Research And Development | Alios Biopharma Inc and XO1 Limited | |||||
Segment Reporting Information [Line Items] | |||||
In process research and development charge | $ 1,100 | $ 1,100 |
Segments of Business and Geog_5
Segments of Business and Geographic Areas - Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Oct. 01, 2017 | Sep. 30, 2018 | Oct. 01, 2017 | |
Sales by geographic area | ||||
Sales | $ 20,348 | $ 19,650 | $ 61,187 | $ 56,255 |
Percentage Change In Sales By Geographic Area | 3.60% | 8.80% | ||
United States | ||||
Sales by geographic area | ||||
Sales | $ 10,664 | 10,290 | $ 31,255 | 29,394 |
Percentage Change In Sales By Geographic Area | 3.60% | 6.30% | ||
Europe | ||||
Sales by geographic area | ||||
Sales | $ 4,416 | 4,308 | $ 14,023 | 12,398 |
Percentage Change In Sales By Geographic Area | 2.50% | 13.10% | ||
Western Hemisphere, excluding U.S. | ||||
Sales by geographic area | ||||
Sales | $ 1,550 | 1,569 | $ 4,657 | 4,522 |
Percentage Change In Sales By Geographic Area | (1.20%) | 3.00% | ||
Asia-Pacific, Africa | ||||
Sales by geographic area | ||||
Sales | $ 3,718 | $ 3,483 | $ 11,252 | $ 9,941 |
Percentage Change In Sales By Geographic Area | 6.70% | 13.20% |
Business Combinations and Div_3
Business Combinations and Divestitures (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Billions | Jun. 16, 2017USD ($)$ / shares | Oct. 30, 2018USD ($) | Oct. 30, 2018JPY (¥)¥ / shares | Apr. 02, 2017USD ($) | Oct. 01, 2017USD ($) | Sep. 30, 2018USD ($) | Oct. 01, 2017USD ($) | Dec. 31, 2017USD ($) |
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 30,702,000,000 | $ 31,906,000,000 | ||||||
Payments to acquire businesses | 897,000,000 | $ 34,646,000,000 | ||||||
Medical Devices | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | 12,850,000,000 | $ 13,922,000,000 | ||||||
Actelion | ||||||||
Business Acquisition [Line Items] | ||||||||
Share price | $ / shares | $ 280 | |||||||
Goodwill, Subsequent Recognition of Deferred Tax Asset | $ 200,000,000 | |||||||
Business Combination, Initial Accounting Incomplete, Adjustment, Current Liabilities | $ 400,000,000 | |||||||
Goodwill | 6,161,000,000 | |||||||
Payments to acquire businesses | $ 29,600,000,000 | |||||||
Weighted average useful life | 9 years | |||||||
Acquisition related costs | 200,000,000 | |||||||
Actelion | Minimum | ||||||||
Business Acquisition [Line Items] | ||||||||
Finite-Lived Intangible Asset, Useful Life | 4 years | |||||||
Actelion | Maximum | ||||||||
Business Acquisition [Line Items] | ||||||||
Finite-Lived Intangible Asset, Useful Life | 10 years | |||||||
Idorsia | ||||||||
Business Acquisition [Line Items] | ||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 9.90% | |||||||
Convertible Note, Equity Interest, Percentage | 22.10% | |||||||
Idorsia | Convertible Debt | ||||||||
Business Acquisition [Line Items] | ||||||||
Long-term Debt | $ 500,000,000 | |||||||
Debt Instrument, Term | 10 years | |||||||
Idorsia | Line of Credit | ||||||||
Business Acquisition [Line Items] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 250,000,000 | |||||||
Idorsia | Debt Instrument, Redemption, Period One | Convertible Debt | ||||||||
Business Acquisition [Line Items] | ||||||||
Convertible Note, Equity Interest, Percentage | 16.00% | |||||||
Debt Instrument, Restrictive Covenants, Shareholder Ownership Threshold, Percent | 20.00% | |||||||
AMO | ||||||||
Business Acquisition [Line Items] | ||||||||
Weighted average useful life | 14 years 4 months 24 days | |||||||
AMO | Medical Devices | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 1,700,000,000 | |||||||
Payments to acquire businesses | 4,300,000,000 | |||||||
Total amortizable intangibles | $ 2,300,000,000 | |||||||
Discontinued Operations, Held-for-sale or Disposed of by Sale | LifeScan | ||||||||
Business Acquisition [Line Items] | ||||||||
Disposal group consideration | 2,100,000,000 | |||||||
Disposal group inventory | 100,000,000 | |||||||
Disposal group property, plant and equipment | 100,000,000 | |||||||
Disposal group intangible assets | 100,000,000 | |||||||
Disposal group goodwill | 1,000,000,000 | |||||||
Liabilities retained | 400,000,000 | |||||||
Discontinued Operations, Held-for-sale or Disposed of by Sale | AdvancedSterilizationProducts | ||||||||
Business Acquisition [Line Items] | ||||||||
Disposal group consideration | 2,700,000,000 | |||||||
Disposal group inventory | 200,000,000 | |||||||
Disposal group property, plant and equipment | 100,000,000 | |||||||
Disposal group goodwill | 200,000,000 | |||||||
Receivables retained | 100,000,000 | |||||||
Assets held for sale, current | 200,000,000 | |||||||
Discontinued Operations, Held-for-sale or Disposed of by Sale | Supply Chain | ||||||||
Business Acquisition [Line Items] | ||||||||
Disposal group property, plant and equipment | 100,000,000 | |||||||
Assets held for sale, current | $ 300,000,000 | |||||||
Measurement Input, Discount Rate [Member] | Actelion | In-process research and development | ||||||||
Business Acquisition [Line Items] | ||||||||
Fair Value Inputs, Discount Rate | 0.09 | |||||||
Subsequent Event | Ci:z Holdings Co. Ltd. [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Share price | ¥ / shares | ¥ 5,900 | |||||||
Business acquisition cost | $ 2,000,000,000 | ¥ 230 | ||||||
Foreign exchange rate | 112.82 |
Business Combinations and Div_4
Business Combinations and Divestitures - Schedule of Preliminary Amounts Recognized for Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Jun. 16, 2017 | Sep. 30, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||
Goodwill | $ 30,702 | $ 31,906 | |
Actelion | |||
Business Acquisition [Line Items] | |||
Cash & Cash equivalents | 469 | ||
Inventory | 759 | ||
Accounts Receivable | 485 | ||
Other current assets | 93 | ||
Property, plant and equipment | 104 | ||
Goodwill | 6,161 | ||
Intangible assets | 25,010 | ||
Deferred Taxes | 99 | ||
Other non-current assets | 19 | ||
Total Assets Acquired | 33,199 | ||
Current liabilities | 956 | ||
Deferred Taxes | 1,776 | ||
Other non-current liabilities | 413 | ||
Total Liabilities Assumed | 3,145 | ||
Net Assets Acquired | $ 30,054 | ||
Inventory write up | $ 642 |
Business Combinations and Div_5
Business Combinations and Divestitures - Purchase Price Allocation of Identifiable Intangible Assets (Details) - USD ($) $ in Millions | Jun. 16, 2017 | Sep. 30, 2018 |
Actelion | ||
Business Acquisition [Line Items] | ||
Total intangible assets | $ 25,010 | |
Actelion | In-process research and development | ||
Business Acquisition [Line Items] | ||
Indefinite-lived Intangible Assets Acquired | 780 | |
Actelion | Patents and trademarks | ||
Business Acquisition [Line Items] | ||
Total amortizable intangibles | $ 24,230 | |
Valchlor | Patents and trademarks | ||
Business Acquisition [Line Items] | ||
Total amortizable intangibles | $ 400 |
Business Combinations and Div_6
Business Combinations and Divestitures - Schedule of Pro Forma Results (Details) - Actelion $ / shares in Units, $ in Millions | 9 Months Ended |
Oct. 01, 2017USD ($)$ / shares | |
Business Acquisition [Line Items] | |
Net Sales | $ 57,486 |
Net Earnings | $ 11,909 |
Diluted Net Earnings per Common Share | $ / shares | $ 4.34 |
Legal Proceedings (Details)
Legal Proceedings (Details) $ in Billions | 9 Months Ended |
Sep. 30, 2018USD ($)patientclaimant | |
ASR | |
Legal Proceeding (Textuals) | |
Product Liability Contingency Number Of Claimants | 2,000 |
Pinnacle Acetabular Cup System | |
Legal Proceeding (Textuals) | |
Product Liability Contingency Number Of Claimants | 10,400 |
Pelvic Meshes | |
Legal Proceeding (Textuals) | |
Product Liability Contingency Number Of Claimants | 37,400 |
Risperdal | |
Legal Proceeding (Textuals) | |
Product Liability Contingency Number Of Claimants | 13,000 |
XARELTO® | |
Legal Proceeding (Textuals) | |
Product Liability Contingency Number Of Claimants | 25,500 |
Talc | |
Legal Proceeding (Textuals) | |
Product Liability Contingency Number Of Claimants | 11,700 |
Invokana | |
Legal Proceeding (Textuals) | |
Product Liability Contingency Number Of Claimants | 1,100 |
Physiomesh [Member] | |
Legal Proceeding (Textuals) | |
Product Liability Contingency Number Of Claimants | 1,500 |
DePuy ASR U.S. | settled litigation | |
Legal Proceeding (Textuals) | |
Number of patients in settlement | patient | 10,000 |
Damages from Product Defects | Baby Powder | Judicial Ruling | |
Legal Proceeding (Textuals) | |
Litigation contingency | $ | $ 4.7 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018USD ($) | Oct. 01, 2017USD ($) | Sep. 30, 2018USD ($)Employee | Oct. 01, 2017USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 88 | $ 69 | $ 187 | $ 165 |
Supply Chain | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 89 | |||
Restructuring charges recorded to date | 100 | 100 | ||
Supply Chain | Cost of products sold | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 14 | |||
Supply Chain | Other (income) expense | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 34 | |||
Supply Chain | Minimum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring estimated cost | 1,900 | 1,900 | ||
Cost savings expected | 600 | 600 | ||
Supply Chain | Maximum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring estimated cost | 2,300 | 2,300 | ||
Cost savings expected | 800 | $ 800 | ||
Estimated cost settled with cash (as a percent) | 70.00% | |||
Medical Devices | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 101 | $ 473 | ||
Restructuring charges recorded to date | 2,400 | $ 2,400 | ||
Number of positions eliminated | Employee | 2,650 | |||
Number of positions eliminated and receiving severance | Employee | 1,950 | |||
Medical Devices | Cost of products sold | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 9 | |||
Medical Devices | Other (income) expense | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 45 | |||
Medical Devices | Minimum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Positions eliminated (as a percent) | 5.00% | |||
Medical Devices | Maximum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring estimated cost | 2,400 | $ 2,400 | ||
Medical Devices | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 200 | $ 200 | $ 400 | $ 500 |
Medical Devices | Supply Chain | Minimum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Period for activity | 4 years | |||
Medical Devices | Supply Chain | Maximum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Period for activity | 5 years |
Restructuring - Schedule of Res
Restructuring - Schedule of Restructuring Reserve (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Oct. 01, 2017 | Sep. 30, 2018 | Oct. 01, 2017 | |
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges | $ 88 | $ 69 | $ 187 | $ 165 |
Medical Devices | ||||
Restructuring Reserve [Roll Forward] | ||||
Reserve balance beginning | 267 | |||
Restructuring charges | 101 | 473 | ||
Payments for Restructuring | (417) | |||
Restructuring Reserve, Settled without Cash | (100) | |||
Reserve balance ending | 223 | 223 | ||
Medical Devices | Employee Severance | ||||
Restructuring Reserve [Roll Forward] | ||||
Reserve balance beginning | 229 | |||
Restructuring charges | 0 | |||
Payments for Restructuring | (29) | |||
Restructuring Reserve, Settled without Cash | 0 | |||
Reserve balance ending | 200 | 200 | ||
Medical Devices | Asset Write-off | ||||
Restructuring Reserve [Roll Forward] | ||||
Reserve balance beginning | 0 | |||
Restructuring charges | 100 | |||
Payments for Restructuring | 0 | |||
Restructuring Reserve, Settled without Cash | (100) | |||
Reserve balance ending | 0 | 0 | ||
Medical Devices | Other Restructuring | ||||
Restructuring Reserve [Roll Forward] | ||||
Reserve balance beginning | 38 | |||
Restructuring charges | 373 | |||
Payments for Restructuring | (388) | |||
Restructuring Reserve, Settled without Cash | 0 | |||
Reserve balance ending | $ 23 | $ 23 |