Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 25, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | JOHNSON & JOHNSON | |
Entity Central Index Key | 0000200406 | |
Current Fiscal Year End Date | --12-29 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 2,655,055,987 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 30, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 14,734 | $ 18,107 |
Marketable securities | 602 | 1,580 |
Accounts receivable, trade, less allowances for doubtful accounts $244 (2018, $248) | 14,115 | 14,098 |
Inventories (Note 2) | 9,086 | 8,599 |
Prepaid expenses and other | 2,599 | 2,699 |
Assets held for sale (Note 10) | 851 | 950 |
Total current assets | 41,987 | 46,033 |
Property, plant and equipment at cost | 42,262 | 41,851 |
Less: accumulated depreciation | (25,262) | (24,816) |
Property, plant and equipment, net | 17,000 | 17,035 |
Intangible assets, net (Note 3) | 46,898 | 47,611 |
Goodwill (Note 3) | 31,450 | 30,453 |
Deferred taxes on income | 7,533 | 7,640 |
Other assets | 5,159 | 4,182 |
Total assets | 150,027 | 152,954 |
Current liabilities: | ||
Loans and notes payable | 1,708 | 2,796 |
Accounts payable | 6,923 | 7,537 |
Accrued liabilities | 7,946 | 7,601 |
Accrued rebates, returns and promotions | 9,523 | 9,380 |
Accrued compensation and employee related obligations | 1,986 | 3,098 |
Accrued taxes on income | 1,025 | 818 |
Total current liabilities | 29,111 | 31,230 |
Long-term debt (Note 4) | 27,660 | 27,684 |
Deferred taxes on income | 7,394 | 7,506 |
Employee related obligations | 9,905 | 9,951 |
Long-term taxes payable | 8,074 | 8,242 |
Other liabilities | 8,928 | 8,589 |
Total liabilities | 91,072 | 93,202 |
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) | (15,517) | (15,222) |
Retained earnings | 106,650 | 106,216 |
Less: common stock held in treasury, at cost (464,207,000 and 457,519,000 shares) | 35,298 | 34,362 |
Total shareholders’ equity | 58,955 | 59,752 |
Total liabilities and shareholders' equity | $ 150,027 | $ 152,954 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 30, 2018 |
Current assets: | ||
Allowances for doubtful accounts | $ 244 | $ 248 |
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 | 464,207,000 | 457,519,000 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Income Statement [Abstract] | ||
Sales to customers (Note 9) | $ 20,021 | $ 20,009 |
Sales to customers percent to sales | 100.00% | 100.00% |
Cost of products sold | $ 6,615 | $ 6,614 |
Cost of products sold percent to sales | 33.00% | 33.10% |
Gross profit | $ 13,406 | $ 13,395 |
Gross profit percent to sales | 67.00% | 66.90% |
Selling, marketing and administrative expenses | $ 5,219 | $ 5,263 |
Selling marketing and administrative expenses percent to sales | 26.10% | 26.30% |
Research and development expense | $ 2,858 | $ 2,404 |
Research and development expense percent to sales | 14.30% | 12.00% |
In-process research and development | $ 890 | $ 0 |
In-process research and development percent to sales | 4.40% | 0.00% |
Interest income | $ (99) | $ (114) |
Interest income percent to sales | (0.50%) | (0.60%) |
Interest expense, net of portion capitalized | $ 102 | $ 259 |
Interest expense, net of portion capitalized percent to sales | 0.50% | 1.30% |
Other (income) expense, net | $ (22) | $ 60 |
Other (income) expense, net percent to sales | (0.10%) | 0.30% |
Restructuring (Note 12) | $ 36 | $ 42 |
Restructuring charge percent to sales | 0.20% | 0.20% |
Earnings before provision for taxes on income | $ 4,422 | $ 5,481 |
Earnings before provision for taxes on income percent to sales | 22.10% | 27.40% |
Provision for taxes on income (Note 5) | $ 673 | $ 1,114 |
Provision for taxes on income perent to sales | 3.40% | 5.60% |
NET EARNINGS | $ 3,749 | $ 4,367 |
Net earnings percent to sales | 18.70% | 21.80% |
NET EARNINGS PER SHARE (Note 8) | ||
Basic (per share) | $ 1.41 | $ 1.63 |
Diluted (per share) | $ 1.39 | $ 1.60 |
AVG. SHARES OUTSTANDING | ||
Basic (shares) | 2,660.8 | 2,682.2 |
Diluted (shares) | 2,698.8 | 2,731.9 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $ 3,749 | $ 4,367 |
Other comprehensive income (loss), net of tax | ||
Foreign currency translation | (258) | 623 |
Securities: | ||
Unrealized holding gain (loss) arising during period | 0 | 0 |
Reclassifications to earnings | 0 | 0 |
Net change | 0 | 0 |
Employee benefit plans: | ||
Prior service cost amortization during period | (7) | (6) |
Gain (loss) amortization during period | 176 | 192 |
Net change | 169 | 186 |
Derivatives & hedges: | ||
Unrealized gain (loss) arising during period | (302) | (164) |
Reclassifications to earnings | 96 | 178 |
Net change | (206) | 14 |
Other comprehensive income (loss) | (295) | 823 |
Comprehensive income | $ 3,454 | $ 5,190 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Retained Earnings | Accumulated Other Comprehensive Income | Common Stock Issued Amount | Treasury Stock Amount |
Beginning Balance at Dec. 31, 2017 | $ 60,160 | $ 101,793 | $ (13,199) | $ 3,120 | $ (31,554) |
Cumulative Adjustment to retained earnings | 1,264 | 1,496 | (232) | ||
Net earnings | 4,367 | 4,367 | |||
Cash dividends paid | (2,253) | (2,253) | |||
Employee compensation and stock option plans | 351 | (1,051) | 1,402 | ||
Repurchase of common stock | (1,444) | (1,444) | |||
Other | (13) | (13) | |||
Other comprehensive income (loss), net of tax | 823 | 823 | |||
Ending Balance at Apr. 01, 2018 | 63,255 | 104,339 | (12,608) | 3,120 | (31,596) |
Beginning Balance at Dec. 30, 2018 | 59,752 | 106,216 | (15,222) | 3,120 | (34,362) |
Net earnings | 3,749 | 3,749 | |||
Cash dividends paid | (2,396) | (2,396) | |||
Employee compensation and stock option plans | 351 | (919) | 1,270 | ||
Repurchase of common stock | (2,206) | (2,206) | |||
Other | 0 | ||||
Other comprehensive income (loss), net of tax | (295) | (295) | |||
Ending Balance at Mar. 31, 2019 | $ 58,955 | $ 106,650 | $ (15,517) | $ 3,120 | $ (35,298) |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Consolidated Statement of Comprehensive Income [Abstract] | ||
Foreign Currency Translation Expense (Benefit) | $ (61) | $ 163 |
Employee Benefits | (1) | (52) |
Derivatives & Hedges Expense (Benefit) | $ (55) | $ 4 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends paid (in dollars per share) | $ 0.90 | $ 0.84 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net earnings | $ 3,749 | $ 4,367 |
Adjustments to reconcile net earnings to cash flows from operating activities: | ||
Depreciation and amortization of property and intangibles | 1,761 | 1,746 |
Stock based compensation | 258 | 268 |
Asset write-downs | 913 | 0 |
Net gain on sale of assets | (72) | 0 |
Deferred tax provision | (362) | 44 |
Accounts receivable allowances | (3) | (20) |
Changes in assets and liabilities, net of effects from acquisitions and divestitures: | ||
Decrease/(Increase) in accounts receivable | 157 | (479) |
Increase in inventories | (369) | (322) |
Decrease in accounts payable and accrued liabilities | (1,833) | (1,686) |
Increase in other current and non-current assets | (488) | (907) |
(Decrease)/Increase in other current and non-current liabilities | (168) | 595 |
NET CASH FLOWS FROM OPERATING ACTIVITIES | 3,543 | 3,606 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Additions to property, plant and equipment | (656) | (658) |
Proceeds from the disposal of assets/businesses, net | 253 | 20 |
Acquisitions, net of cash acquired | (1,683) | (82) |
Purchases of investments | (730) | (548) |
Sales of investments | 1,495 | 341 |
Other | (96) | 2 |
NET CASH USED BY INVESTING ACTIVITIES | (1,417) | (925) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Dividends to shareholders | (2,396) | (2,253) |
Repurchase of common stock | (2,206) | (1,444) |
Proceeds from short-term debt | 13 | 26 |
Retirement of short-term debt | (16) | (2,484) |
Proceeds from long-term debt, net of issuance costs | 0 | 2 |
Retirement of long-term debt | (1,002) | (8) |
Proceeds from the exercise of stock options/employee withholding tax on stock awards, net | 94 | 66 |
Other | (3) | 125 |
NET CASH USED BY FINANCING ACTIVITIES | (5,516) | (5,970) |
Effect of exchange rate changes on cash and cash equivalents | 17 | 104 |
Decrease in cash and cash equivalents | (3,373) | (3,185) |
Cash and Cash equivalents, beginning of period | 18,107 | 17,824 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 14,734 | 14,639 |
Acquisitions | ||
Fair value of assets acquired | 2,154 | 119 |
Fair value of liabilities assumed and noncontrolling interests | (471) | (37) |
Net cash paid for acquisitions | $ 1,683 | $ 82 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
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 30, 2018 . 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. Columns and rows within tables may not add due to rounding. Percentages have been calculated using actual, non-rounded figures. New Accounting Standards Recently Adopted Accounting Standards ASU 2016-02 : Leases The Company adopted this standard as of the beginning of fiscal year 2019, on a prospective basis. 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 arrangements that are classified as operating leases. The Company’s operating leases resulted in the recognition of additional assets and the corresponding liabilities on its Consolidated Balance Sheet, however it did not have a material impact on the consolidated financial statements. The Company determines whether an arrangement is a lease at contract inception by establishing if the contract conveys the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. Right of Use (ROU) Assets and Lease Liabilities for operating leases are included in Other assets, Accrued liabilities, and Other liabilities on the consolidated balance sheet. The ROU Assets represent the right to use an underlying asset for the lease term and lease liabilities represent an obligation to make lease payments arising from the lease. Commitments under finance leases are not significant, and are included in Property, plant and equipment, Loans and notes payable, and Long-term debt on the consolidated balance sheet. ROU Assets and Lease Liabilities are recognized at the lease commencement date based on the present value of all minimum lease payments over the lease term. The Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments, when the implicit rate is not readily determinable. Lease terms may include options to extend or terminate the lease. These options are included in the lease term when it is reasonably certain that the Company will exercise that option. Operating lease expense is recognized on a straight-line basis over the lease term. The Company has elected the following policy elections on adoption: use of portfolio approach on leases of assets under master service agreements, exclusion of short term leases on the balance sheet, and not separating lease and non-lease components. The Company primarily has operating leases for space, vehicles, manufacturing equipment, and data processing equipment. Leases have remaining lease terms ranging from 1 year to 37 years , some of which could include options to extend the leases when they are reasonably certain. As noted in the Company’s 2018 10-K, the approximate minimum rental payments required under operating leases that had initial or remaining non-cancelable lease terms in excess of one year at December 30, 2018 were: (Dollars in Millions) 2019 2020 2021 2022 2023 After 2023 Total $223 188 154 116 76 139 896 Commitments under finance leases are not significant. Maturity of Lease Liabilities related to Operating Lease The minimum rental payments required under operating leases that have initial or remaining non-cancellable lease terms in excess of one year as of March 31, 2019 are: (Dollars in Millions) Operating Leases 2019 (excluding the fiscal first quarter ended March 31, 2019) $ 198 2020 222 2021 177 2022 126 2023 81 After 2023 194 Total lease payments 998 Less: Interest 93 Present Value of lease liabilities $ 905 The Weighted Average Remaining Lease Term and discount rate: Operating leases 5.8 years Weighted Average Discount Rate 3% For the fiscal quarter ended March 31, 2019, the operating lease costs were $74 million . Cash paid for amounts included in the measurement of lease liabilities were $71 million . Other supplemental information related to these leases are as follows: Supplemental balance sheet information (for the fiscal first quarter ended March 31, 2019) : (Dollars in Millions) Non-current operating lease right-of-use assets $ 879 Current operating lease liabilities 249 Non-current Operating lease liabilities 656 Total operating lease liabilities $ 905 ASU 2018-02 : Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income This update allows a Company to elect to reclassify stranded tax effects resulting from the Tax Cuts and Job Act enacted in December 2017 from accumulated other comprehensive income to retained earnings. The Company has elected not to reclassify the income tax effects of this standard and therefore this standard will not impact the Company's consolidated financial statements. ASU 2018-16 : Derivatives and Hedging (Topic ASC 815) This update adds the Overnight Index Swap (OIS) rate based on the Secured Overnight Financing Rate (SOFR) as an eligible benchmark interest rate permitted in the application of hedge accounting. The guidance was effective for the Company as of the fiscal fourth quarter of 2018, due to the previous adoption of ASU 2017-12. The impact of the adoption of this guidance did not have a material impact on the Company’s consolidated financial statements and related disclosures. The standard may have an impact in the future as the market for SOFR derivatives develops over time and if SOFR is used to hedge the Company’s financial instruments. Recently Issued Accounting Standards Not Adopted as of March 31, 2019 ASU 2018-18 : Collaborative Arrangements This update clarifies the interaction between ASC 808, Collaborative Arrangements and ASC 606, Revenue from Contracts with Customers. The update clarifies that certain transactions between participants in a collaborative arrangement should be accounted for under ASC 606 when the counterparty is a customer. In addition, the update precludes an entity from presenting consideration from a transaction in a collaborative arrangement as revenue if the counterparty is not a customer for that transaction. This update will be effective for the Company for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. ASU 2018-18 should be applied retrospectively to the date of initial application of ASC 606 and early adoption is permitted. The Company is currently assessing the impact of this update on the Company’s consolidated financial statements and related disclosures. ASU 2016-13 : Financial Instruments - Credit Losses This update introduces the current expected credit loss (CECL) model, which will require an entity to measure credit losses for certain financial instruments and financial assets, including trade receivables. Under this update, on initial recognition and at each reporting period, an entity will be required to recognize an allowance that reflects the entity’s current estimate of credit losses expected to be incurred over the life of the financial instrument. This update will be effective for the Company for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the impact of this update on the Company’s consolidated financial statements and related disclosures. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES (Dollars in Millions) March 31, 2019 December 30, 2018 Raw materials and supplies $ 1,177 1,114 Goods in process 2,081 2,109 Finished goods 5,828 5,376 Total inventories (1) $ 9,086 8,599 (1) Net of assets held for sale on the Consolidated Balance Sheet for approximately $0.2 billion related to the divestiture of the Advanced Sterilization Products business and $0.2 billion related to the strategic collaboration with Jabil Inc., both of which were pending as of March 31, 2019. Net of assets held for sale of approximately $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., both of which were pending as of December 30, 2018. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 3 Months Ended |
Mar. 31, 2019 | |
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 2018 . 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) March 31, 2019 December 30, 2018 Intangible assets with definite lives: Patents and trademarks — gross $ 35,963 35,194 Less accumulated amortization 10,548 9,784 Patents and trademarks — net 25,415 25,410 Customer relationships and other intangibles — gross 21,766 21,334 Less accumulated amortization 8,586 8,323 Customer relationships and other intangibles — net 13,180 13,011 Intangible assets with indefinite lives: Trademarks 6,912 6,937 Purchased in-process research and development (1) 1,391 2,253 Total intangible assets with indefinite lives 8,303 9,190 Total intangible assets — net $ 46,898 47,611 (1) In the fiscal first quarter of 2019, the Company recorded an IPR&D impairment charge of $0.9 billion for the remaining intangible asset value 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 Biopharma Inc. The impairment charge was based on additional information, including clinical data, which became available and led to the Company's decision to abandon the development of AL-8176. A partial impairment charge of $0.8 billion was previously recorded in the fiscal third quarter of 2018 related to the development program of AL-8176. Goodwill as of March 31, 2019 was allocated by segment of business as follows: (Dollars in Millions) Consumer Pharm Med Devices Total Goodwill, net at December 30, 2018 $ 8,670 9,063 12,720 30,453 Goodwill, related to acquisitions 1,176 — 23 1,199 Goodwill, related to divestitures — — — — Currency translation/Other (116 ) (75 ) (11 ) (202 ) Goodwill, net at March 31, 2019 $ 9,730 8,988 12,732 31,450 Goodwill is net of approximately $0.3 billion related to the divestiture of the Advanced Sterilization Products business, which was pending and classified as assets held for sale on the Consolidated Balance Sheet as of March 31, 2019. The weighted average amortization period for patents and trademarks is 12 years. The weighted average amortization period for customer relationships and other intangible assets is 21 years. The amortization expense of amortizable intangible assets included in cost of products sold was $1.1 billion and $1.1 billion for the fiscal first quarters ended ended March 31, 2019 and April 1, 2018 , 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 | 3 Months Ended |
Mar. 31, 2019 | |
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. Both types of derivatives are designated as cash flow hedges. Additionally, 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. The Company maintains credit support agreements (CSA) with certain derivative counterparties establishing collateral thresholds based on respective credit ratings and netting agreements. As of March 31, 2019 , the total amount of collateral paid under the credit support agreements (CSA) amounted to $60 million , net. 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 March 31, 2019 , the Company had notional amounts outstanding for forward foreign exchange contracts, cross currency interest rate swaps and interest rate swaps of $44.0 billion , $11.3 billion and $0.5 billion , respectively. As of December 30, 2018 , the Company had notional amounts outstanding for forward foreign exchange contracts, cross currency interest rate swaps and interest rate swaps of $41.1 billion , $7.3 billion and $0.5 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. Foreign exchange contracts designated as cash flow hedges are accounted for under the forward method and all gains/losses associated with these contracts will be recognized in the income statement when the hedged item impacts earnings. Changes in the fair value of these derivatives 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 within accumulated other comprehensive income. The portion excluded from effectiveness testing is recorded through interest (income) expense using the spot method. On an ongoing basis, the Company assesses whether each derivative continues to be highly effective in offsetting changes of hedged items. If and when a derivative is no longer expected to be highly effective, hedge accounting is discontinued. 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 March 31, 2019 , the balance of deferred net loss on derivatives included in accumulated other comprehensive income was $401 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 first quarters ended in 2019 and 2018 : March 31, 2019 April 1, 2018 (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 $ — — — 1 — — — — 5 — Derivatives designated as hedging instruments — — — (1 ) — — — — (5 ) — 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 — — — 38 — — — — — — Amount of gain or (loss) recognized in AOCI — — — 38 — — — — — — Gain (Loss) on cash flow hedging relationship: Forward foreign exchange contracts: Amount of gain or (loss) reclassified from AOCI into income (21 ) (35 ) (139 ) — 6 29 2 (238 ) — (11 ) Amount of gain or (loss) recognized in AOCI (6 ) (296 ) (110 ) — 13 31 3 (237 ) — (18 ) Cross currency interest rate swaps contracts: Amount of gain or (loss) reclassified from AOCI into income — — — 55 — — — — 40 — Amount of gain or (loss) recognized in AOCI $ — — — 59 — — — — 57 — As of March 31, 2019 and December 30, 2018 , 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) March 31, 2019 December 30, 2018 March 31, 2019 December 30, 2018 Current Portion of Long-term Debt $ 499 494 1 5 Long-term Debt — — — — The following table is the effect of derivatives not designated as hedging instrument for the fiscal first quarters in 2019 and 2018: Gain/(Loss) Recognized In Income on Derivative (Dollars in Millions) Location of Gain /(Loss) Recognized in Income on Derivative Fiscal First Quarters Ended Derivatives Not Designated as Hedging Instruments March 31, 2019 April 1, 2018 Foreign Exchange Contracts Other (income) expense (38 ) (19 ) The following table is the effect of net investment hedges for the fiscal first quarters ended in 2019 and 2018 : 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) March 31, 2019 April 1, 2018 March 31, 2019 April 1, 2018 Debt $ 71 (150 ) Other (income) expense — — Cross Currency interest rate swaps $ 370 — Other (income) expense — — 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: (Dollars in Millions) December 30, 2018 March 31, 2019 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 $ 511 143 176 830 830 Equity Investments without readily determinable value $ 681 4 13 698 698 (1) Recorded in Other Income/Expense (2) Other includes impact of currency For equity investments without readily determinable market values, $11 million of the decreases in fair value reflected in net income were the result of impairments. There were $15 million of increases in fair value reflected in net income due to changes in observable prices. 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. In accordance with ASC 820, a three-level hierarchy was established 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 March 31, 2019 and December 30, 2018 were as follows: March 31, 2019 December 30, 2018 (Dollars in Millions) Level 1 Level 2 Level 3 Total Total (1) Derivatives designated as hedging instruments: Assets: Forward foreign exchange contracts $ — 280 — 280 501 Interest rate contracts (2)(4) — 383 — 383 161 Total — 663 — 663 662 Liabilities: Forward foreign exchange contracts — 571 — 571 548 Interest rate contracts (3)(4) — 295 — 295 292 Total — 866 — 866 840 Derivatives not designated as hedging instruments: Assets: Forward foreign exchange contracts — 33 — 33 32 Liabilities: Forward foreign exchange contracts — 26 — 26 32 Other Investments: Equity investments (5) 830 — — 830 511 Debt securities (6) $ — 4,673 — 4,673 9,734 Gross to Net Derivative Reconciliation March 31, 2019 December 30, 2018 (Dollars in Millions) Total Gross Assets $ 696 694 Credit Support Agreement (CSA) (592 ) (423 ) Total Net Asset 104 271 Total Gross Liabilities 892 872 Credit Support Agreement (CSA) (652 ) (605 ) Total Net Liabilities $ 240 267 (1) December 30, 2018 assets and liabilities are all classified as Level 2 with the exception of equity investments of $511 million , which are classified as Level 1. (2) Includes $6 million of non-current other assets for December 30, 2018 . (3) Includes $2 million and $3 million of non-current other liabilities for March 31, 2019 and December 30, 2018 , 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 $830 million and $511 million as of March 31, 2019 and December 30, 2018 , respectively. (6) Classified within cash equivalents and current marketable securities. The Company's cash, cash equivalents and current marketable securities as of March 31, 2019 comprised: March 31, 2019 (Dollars in Millions) Carrying Amount Estimated Fair Value Cash & Cash Equivalents Current Marketable Securities Cash $ 2,778 2,778 2,778 Other sovereign securities (1) 190 190 190 U.S. reverse repurchase agreements 2,068 2,068 2,068 Other reverse repurchase agreements 350 350 350 Corporate debt securities (1) 549 549 449 100 Money market funds 4,195 4,195 4,195 Time deposits (1) 533 533 533 Subtotal 10,663 10,663 10,563 100 Government securities 4,412 4,412 4,143 269 Other sovereign securities — — — — Corporate debt securities 261 261 28 233 Subtotal available for sale debt (2) $ 4,673 4,673 4,171 502 Total cash, cash equivalents and current marketable securities 14,734 602 (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. In the fiscal first quarter ended March 31, 2019 and the fiscal year ended December 30, 2018 the carrying amount was the same as the estimated fair value. 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 March 31, 2019 are as follows: (Dollars in Millions) Cost Basis Fair Value Due within one year $ 4,613 4,613 Due after one year through five years 60 60 Due after five years through ten years — — Total debt securities $ 4,673 4,673 Financial Instruments not measured at Fair Value: The following financial liabilities are held at carrying amount on the consolidated balance sheet as of March 31, 2019 : (Dollars in Millions) Carrying Amount Estimated Fair Value Financial Liabilities Current Debt $ 1,708 1,708 Non-Current Debt 3% Zero Coupon Convertible Subordinated Debentures due in 2020 51 98 1.950% Notes due 2020 499 496 2.95% Debentures due 2020 548 553 3.55% Notes due 2021 449 460 2.45% Notes due 2021 349 350 1.65% Notes due 2021 999 985 0.250% Notes due 2022 (1B Euro 1.1222) 1,120 1,135 2.25% Notes due 2022 997 993 6.73% Debentures due 2023 250 298 3.375% Notes due 2023 805 838 2.05% Notes due 2023 498 492 0.650% Notes due 2024 (750MM Euro 1.1222) 838 866 5.50% Notes due 2024 (500 MM GBP 1.3114) 651 795 2.625% Notes due 2025 748 748 2.45% Notes due 2026 1,992 1,947 2.95% Notes due 2027 996 1,001 2.90% Notes due 2028 1,493 1,485 1.150% Notes due 2028 (750MM Euro 1.1222) 834 885 6.95% Notes due 2029 297 397 4.95% Debentures due 2033 498 587 4.375% Notes due 2033 856 961 1.650% Notes due 2035 (1.5B Euro 1.1222) 1,667 1,809 3.55% Notes due 2036 988 996 5.95% Notes due 2037 991 1,294 3.625% Notes due 2037 1,486 1,510 3.40% Notes due 2038 990 978 5.85% Debentures due 2038 696 908 4.50% Debentures due 2040 538 605 4.85% Notes due 2041 297 351 4.50% Notes due 2043 495 563 3.70% Notes due 2046 1,972 2,005 3.75% Notes due 2047 991 1,017 3.50% Notes due 2048 742 731 Other 39 39 Total Non-Current Debt $ 27,660 29,176 The weighted average effective interest rate on non-current debt is 3.19% . The excess of the estimated fair value over the carrying value of debt was $0.3 billion at December 30, 2018. 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 | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The worldwide effective income tax rates for the fiscal first quarters of 2019 and 2018 were 15.2% and 20.3% , respectively. The U.S. Tax Cuts and Jobs Act (TCJA) was enacted into law on December 22, 2017 with a January 1, 2018 effective date for most provisions. This law reduced the U.S. statutory corporate tax rate from 35% to 21%, eliminated or reduced certain corporate income tax deductions and introduced a tax on global intangible low-taxed income (GILTI) and a Base Erosion and Anti Abuse Tax (BEAT). During the first fiscal quarter of 2018, the Company estimated the impact of the tax law change based on the best information and guidance available at that time. Subsequent U.S. Treasury guidance on the application of these provisions allowed the Company to better refine these calculations for fiscal year 2018 and when combined with the election to account for GILTI under the deferred method reduced the first fiscal quarter of 2019 effective income tax rate by approximately 4.0% versus the first fiscal quarter of 2018. Additionally, in the fiscal first quarter of 2019, the Company had less income in higher tax jurisdictions relative to lower tax jurisdictions, driven primarily by the one-time charges in the U.S. related to the impairment of the Alios in-process research and development intangible asset and litigation expense as compared to the same period in 2018. As of March 31, 2019 , the Company had approximately $3.4 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. With respect to the United States, 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 substantial completion of this audit within the next 12 months. The outcome from this tax audit may result in adjustments to the Company’s current estimates that may have a material impact on the Company’s current and future operating results or cash flows in the period that the audit is substantially completed. |
Pensions and Other Benefit Plan
Pensions and Other Benefit Plans | 3 Months Ended |
Mar. 31, 2019 | |
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 first quarters of 2019 and 2018 include the following components: Retirement Plans Other Benefit Plans (Dollars in Millions) March 31, 2019 April 1, 2018 March 31, 2019 April 1, 2018 Service cost 276 309 68 67 Interest cost 275 252 46 37 Expected return on plan assets (583 ) (560 ) (2 ) (2 ) Amortization of prior service cost/(credit) 1 1 (8 ) (8 ) Recognized actuarial losses 144 215 32 30 Curtailments and settlements (1 ) (2 ) — — Net periodic benefit cost 112 215 136 124 The service cost component of net periodic benefit cost is 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 first quarter ended March 31, 2019 , the Company contributed $21 million and $79 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 | 3 Months Ended |
Mar. 31, 2019 | |
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 30, 2018 $ (8,869 ) — (6,158 ) (195 ) (15,222 ) Net change (258 ) — 169 (206 ) (295 ) March 31, 2019 $ (9,127 ) — (5,989 ) (401 ) (15,517 ) 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 | 3 Months Ended |
Mar. 31, 2019 | |
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 first quarters ended March 31, 2019 and April 1, 2018 : (Shares in Millions) March 31, 2019 April 1, 2018 Basic net earnings per share 1.41 1.63 Average shares outstanding — basic 2,660.8 2,682.2 Potential shares exercisable under stock option plans 136.7 139.5 Less: shares which could be repurchased under treasury stock method (99.4 ) (90.6 ) Convertible debt shares 0.7 0.8 Average shares outstanding — diluted 2,698.8 2,731.9 Diluted net earnings per share 1.39 1.60 The diluted net earnings per share calculation for both the fiscal first quarters ended March 31, 2019 and April 1, 2018 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 first quarters ended March 31, 2019 and April 1, 2018 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 | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segments of Business and Geographic Areas | SEGMENTS OF BUSINESS AND GEOGRAPHIC AREAS SALES BY SEGMENT OF BUSINESS Fiscal First Quarters Ended (Dollars in Millions) March 31, April 1, Percent Change CONSUMER Baby Care U.S. $ 87 97 (10.9 )% International 307 360 (14.8 ) Worldwide 394 457 (14.0 ) Beauty U.S. 588 611 (3.8 ) International 502 473 6.2 Worldwide 1,090 1,084 0.6 Oral Care U.S. 151 157 (3.5 ) International 216 222 (2.8 ) Worldwide 367 379 (3.1 ) OTC U.S. 507 465 9.1 International 580 607 (4.6 ) Worldwide 1,087 1,072 1.3 Women's Health U.S. 3 3 4.2 International 222 240 (7.5 ) Worldwide 225 243 (7.3 ) Wound Care/Other U.S. 102 103 (0.9 ) International 53 60 (11.6 ) Worldwide 155 163 (4.8 ) TOTAL CONSUMER U.S. 1,438 1,436 0.2 International 1,880 1,962 (4.2 ) Worldwide 3,318 3,398 (2.4 ) PHARMACEUTICAL Immunology U.S. 2,163 2,000 8.1 International 1,088 1,042 4.5 Worldwide 3,251 3,042 6.9 REMICADE ® U.S. 774 916 (15.5 ) U.S. Exports 76 142 (46.4 ) International 252 331 (23.6 ) Worldwide 1,102 1,389 (20.6 ) SIMPONI / SIMPONI ARIA ® U.S. 263 224 17.0 International 261 294 (11.1 ) Worldwide 524 518 1.0 STELARA ® U.S. 882 652 35.2 International 523 409 27.9 Worldwide 1,405 1,061 32.4 TREMFYA ® U.S. 168 66 * International 49 6 * Worldwide 217 72 * OTHER IMMUNOLOGY U.S. — — — International 3 2 19.5 Worldwide 3 2 19.5 Infectious Diseases U.S. 357 333 7.3 International 489 497 (1.7 ) Worldwide 846 830 1.9 EDURANT ® / rilpivirine U.S. 12 14 (18.8 ) International 199 196 2.2 Worldwide 211 210 0.8 PREZISTA ® / PREZCOBIX ® / REZOLSTA ® / SYMTUZA ® U.S. 315 273 15.5 International 208 205 1.5 Worldwide 523 478 9.5 OTHER INFECTIOUS DISEASES U.S. 30 46 (33.8 ) International 82 96 (16.0 ) Worldwide 112 142 (21.7 ) Neuroscience U.S. 723 624 16.0 International 905 935 (3.2 ) Worldwide 1,629 1,559 4.5 CONCERTA ® / Methylphenidate U.S. 97 66 47.7 International 116 107 8.5 Worldwide 214 173 23.4 INVEGA SUSTENNA ® / XEPLION ® / INVEGA TRINZA ® / TREVICTA ® U.S. 483 400 20.7 International 307 296 3.8 Worldwide 790 696 13.5 RISPERDAL CONSTA ® U.S. 77 82 (6.8 ) International 102 114 (10.3 ) Worldwide 179 196 (8.8 ) OTHER NEUROSCIENCE U.S. 66 76 (12.0 ) International 379 418 (9.2 ) Worldwide 446 494 (9.6 ) Oncology U.S. 962 933 3.1 International 1,556 1,378 13.0 Worldwide 2,518 2,311 9.0 DARZALEX ® U.S. 352 264 33.0 International 277 168 65.1 Worldwide 629 432 45.5 IMBRUVICA ® U.S. 349 227 53.7 International 435 360 20.8 Worldwide 784 587 33.5 VELCADE ® U.S. — — — International 263 313 (16.0 ) Worldwide 263 313 (16.0 ) ZYTIGA ® / abiraterone acetate U.S. 185 407 (54.5 ) International 494 438 12.9 Worldwide 679 845 (19.6 ) OTHER ONCOLOGY U.S. 76 35 * International 87 99 (12.2 ) Worldwide 163 134 21.7 Pulmonary Hypertension U.S. 430 361 19.2 International 226 224 0.7 Worldwide 656 585 12.1 OPSUMIT ® U.S. 172 149 15.9 International 133 122 8.9 Worldwide 306 271 12.7 TRACLEER ® U.S. 61 68 (10.1 ) International 56 72 (22.9 ) Worldwide 117 140 (16.7 ) UPTRAVI ® U.S. 176 124 41.4 International 22 16 42.8 Worldwide 198 140 41.6 OTHER U.S. 21 20 3.6 International 15 14 4.6 Worldwide 35 34 4.0 Cardiovascular / Metabolism / Other U.S. 947 1,103 (14.1 ) International 398 414 (3.9 ) Worldwide 1,345 1,517 (11.3 ) XARELTO ® U.S. 542 578 (6.3 ) International — — — Worldwide 542 578 (6.3 ) INVOKANA ® / INVOKAMET ® U.S. 154 204 (24.8 ) International 49 44 11.6 Worldwide 202 248 (18.4 ) PROCRIT ® / EPREX ® U.S. 148 189 (21.6 ) International 78 87 (10.2 ) Worldwide 226 276 (18.0 ) OTHER U.S. 104 132 (21.3 ) International 271 283 (4.4 ) Worldwide 374 415 (9.7 ) TOTAL PHARMACEUTICAL U.S. 5,582 5,354 4.3 International 4,662 4,490 3.9 Worldwide 10,244 9,844 4.1 MEDICAL DEVICES Diabetes Care U.S. — 117 * International — 222 * Worldwide — 339 * Interventional Solutions U.S. 343 304 12.6 International 389 336 15.8 Worldwide 732 640 14.3 Orthopaedics U.S. 1,318 1,307 0.9 International 885 943 (6.2 ) Worldwide 2,204 2,250 (2.1 ) HIPS U.S. 213 209 2.1 International 148 154 (3.8 ) Worldwide 361 363 (0.4 ) KNEES U.S. 223 228 (2.2 ) International 146 159 (8.2 ) Worldwide 369 387 (4.7 ) TRAUMA U.S. 417 407 2.5 International 268 289 (7.0 ) Worldwide 685 696 (1.4 ) SPINE & OTHER U.S. 465 463 0.3 International 323 341 (5.5 ) Worldwide 788 804 (2.2 ) Surgery U.S. 1,001 993 0.8 International 1,394 1,430 (2.6 ) Worldwide 2,395 2,423 (1.2 ) ADVANCED U.S. 404 393 2.9 International 576 573 0.5 Worldwide 980 966 1.5 GENERAL U.S. 425 423 0.3 International 665 704 (5.6 ) Worldwide 1,089 1,127 (3.4 ) SPECIALTY U.S. 172 177 (2.5 ) International 153 153 (0.2 ) Worldwide 325 330 (1.4 ) Vision U.S. 446 440 1.5 International 682 675 1.1 Worldwide 1,129 1,115 1.2 CONTACT LENSES / OTHER U.S. 321 309 4.1 International 502 498 1.0 Worldwide 824 807 2.1 SURGICAL U.S. 125 131 (4.5 ) International 180 177 1.3 Worldwide 305 308 (1.1 ) TOTAL MEDICAL DEVICES U.S. 3,109 3,161 (1.6 ) International 3,350 3,606 (7.1 ) Worldwide 6,459 6,767 (4.6 ) WORLDWIDE U.S. 10,129 9,951 1.8 International 9,892 10,058 (1.7 ) Worldwide $ 20,021 20,009 0.1 % *Percentage greater than 100% or not meaningful EARNINGS BEFORE PROVISION FOR TAXES BY SEGMENT Fiscal First Quarters Ended (Dollars in Millions) March 31, April 1, Percent Change Consumer (1) $ 741 548 35.2 % Pharmaceutical (2) 2,331 3,666 (36.4 ) Medical Devices (3) 1,497 1,579 (5.2 ) Segment earnings before provision for taxes 4,569 5,793 (21.1 ) Less: Expense not allocated to segments (4) 147 312 Worldwide income before tax $ 4,422 5,481 (19.3 )% (1) Includes a gain of $0.3 billion related to the Company's previously held equity investment in Ci:z Holdings Co., Ltd. (Dr. Ci: Labo) Includes amortization expense of $0.1 billion and $0.1 billion in the fiscal first quarters of 2019 and 2018, respectively. (2) Includes an in-process research and development expense of $0.9 billion related to the Alios asset, litigation expense of $0.3 billion and an unrealized gain on securities of $0.1 billion in the fiscal first quarter of 2019. Additionally, the fiscal first quarter of 2019 includes increased research and development expense primarily $0.3 billion related to an upfront payment to argenx and increased investment to advance the pipeline. Includes Actelion acquisition related costs of $0.1 billion in the fiscal first quarter of 2018. Includes amortization expense of $0.8 billion and $0.8 billion in the fiscal first quarters of 2019 and 2018, respectively. (3) Includes a restructuring related charge of $0.1 billion and $0.1 billion in the fiscal first quarters of 2019 and 2018, respectively. Includes litigation expense of $0.1 billion in the fiscal first quarter of 2019. Includes amortization expense of $0.2 billion and $0.3 billion in the fiscal first quarters of 2019 and 2018, respectively. (4) Amounts not allocated to segments include interest income/expense and general corporate income/expense. SALES BY GEOGRAPHIC AREA Fiscal First Quarters Ended (Dollars in Millions) March 31, 2019 April 1, 2018 Percent Change United States $ 10,129 9,951 1.8 % Europe 4,609 4,797 (3.9 ) Western Hemisphere, excluding U.S. 1,503 1,567 (4.1 ) Asia-Pacific, Africa 3,780 3,694 2.3 Total $ 20,021 20,009 0.1 % |
Business Combinations and Dives
Business Combinations and Divestitures | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Business Combinations and Divestitures | BUSINESS COMBINATIONS AND DIVESTITURES Subsequent to the fiscal first quarter of 2019, the Company completed the acquisition of Auris Health, Inc. for approximately $3.4 billion , net of cash acquired. Additional contingent payments of up to $2.35 billion , in the aggregate, may be payable upon reaching certain predetermined milestones. Auris Health is a privately held developer of robotic technologies, initially focused in lung cancer, with an FDA-cleared platform currently used in bronchoscopic diagnostic and therapeutic procedures. The Company expects to treat this transaction as a business combination and will include it in the Medical Devices segment. Subsequent to the fiscal first quarter of 2019, the Company completed the divestiture of its Advanced Sterilization Products (ASP) business to Fortive Corporation for an aggregate value of approximately $2.8 billion , consisting of $2.7 billion of cash proceeds and $0.1 billion of retained net receivables. As of March 31, 2019, 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 $0.3 billion of goodwill. On October 23, 2018, the Company entered into an agreement to acquire Ci:z Holdings Co., Ltd., (DR.CI:LABO) a Japanese company focused on the marketing, development and distribution of a broad range of dermocosmetic, cosmetic and skincare products for a total purchase price of approximately ¥230 billion , which equates to approximately $2.1 billion , using the exchange rate of 109.06 Japanese Yen to each U.S. Dollar on January 16, 2019. The acquisition was completed on January 17, 2019, through a series of transactions that included an all-cash tender offer to acquire the publicly held shares not already held by the Company for ¥5,900 per share. The Company previously held a 20% ownership in Ci:z Holdings Co., Ltd. Upon completion of the tender offer and the related transactions, the Company acquired 89% of the outstanding shares. As of March 31, 2019, the Company paid approximately $1.6 billion , net of cash acquired, representing 69% of the shares to which the offer was extended. As of March 31, 2019, the Company also reflected a current liability of $0.3 billion on its consolidated balance sheet for the remaining 11% of the untendered shares, which the Company subsequently acquired in April 2019, through a share consolidation under Japanese law. The acquired company was then delisted from the Tokyo Stock Exchange. The Company expects to settle the outstanding liability in 2019. Additionally, in the fiscal first quarter of 2019, the Company recognized a pre-tax gain recorded in Other (income) expense, net, of approximately $0.3 billion related to the Company's previously held equity investment in Ci:z Holdings Co., Ltd. The Company treated this transaction as a business combination and included it in the Consumer segment. The fair value of the acquisition including the previously held equity interest and share consolidation liability was allocated primarily to amortizable intangible assets for $1.6 billion , goodwill for $1.2 billion and liabilities assumed of $0.6 billion subject to any subsequent valuation adjustments within the measurement period. The amortizable intangible assets were comprised of brand/trademarks and customer relationships with a weighted average life of 15.3 years . The goodwill is primarily attributable to synergies expected to arise from the business acquisition and is not expected to be deductible for tax purposes. During the fiscal third quarter of 2018, 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 transaction includes the transfer of employees and manufacturing sites. Certain manufacturing sites were transferred to Jabil in the fiscal first quarter of 2019 and additional sites are expected to transfer in the remainder of 2019. As of March 31, 2019, the assets held for sale on the Consolidated Balance Sheet were $0.2 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. |
Legal Proceedings
Legal Proceedings | 3 Months Ended |
Mar. 31, 2019 | |
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; supplier indemnification 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 March 31, 2019 , 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. From time to time, even if it has substantial defenses, the Company considers isolated settlements based on a variety of circumstances. 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 March 31, 2019 , in the United States there were approximately 1,700 plaintiffs with direct claims in pending lawsuits regarding injuries allegedly due to the DePuy ASR™ XL Acetabular System and DePuy ASR™ Hip Resurfacing System; 10,500 with respect to the PINNACLE ® Acetabular Cup System; 29,500 with respect to pelvic meshes; 13,100 with respect to RISPERDAL ® ; 27,300 with respect to XARELTO ® ; 14,200 with respect to body powders containing talc; 1,000 with respect to INVOKANA ® ; and 2,500 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. 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. 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, one of which was reversed on appeal and remanded for retrial. During the first quarter of 2019, Depuy established a United States settlement program to resolve these cases. As part of the settlement program, adverse verdicts have been settled. The Company has established an accrual for product liability litigation associated with the PINNACLE ® Acetabular Cup System and the related settlement program. 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 the parties are awaiting a decision. 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. In March 2019, the Company announced an agreement in principle to the settle the XARELTO ® cases in the United States. The Company has established accruals for the costs associated with the United States settlement program and XARELTO ® related product liability litigation. 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 JOHNSON’S ® 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, as well as outside the United States. 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 verdict in July 2018 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. In February 2019, the Company’s talc supplier, Imerys Talc America, Inc. and two of its affiliates, Imerys Talc Vermont, Inc. and Imerys Talc Canada, Inc. (collectively, “Imerys”) filed a voluntary chapter 11 petition commencing a reorganization under the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware ("Imerys Bankruptcy"). The Imerys Bankruptcy relates to potential liability on account of Imerys’s sales of talc, including to the Company for the Company’s body powders. In its bankruptcy filing, Imerys noted certain claims it alleged it had against the Company for indemnification and rights to joint insurance proceeds. Based on such claims as well as indemnity and insurance claims the Company has against Imerys, the Company has petitioned the United States District Court for the District of Delaware to establish federal jurisdiction of the state court talc lawsuits under the “related to” jurisdictional provisions of the Bankruptcy Code. In February 2018, a securities class action lawsuit was filed against Johnson & Johnson and certain named officers in the United States District Court for the District of New Jersey, alleging that Johnson & Johnson violated the federal securities laws by failing to adequately disclose the alleged asbestos contamination in body powders containing talc, primarily JOHNSON'S ® Baby Powder, and that purchasers of Johnson & Johnson’s shares suffered losses as a result. Plaintiffs are seeking damages. In October 2018, a shareholder derivative lawsuit was filed against Johnson & Johnson as the nominal defendant and its current directors as defendants in the United States District Court for the District of New Jersey, alleging a breach of fiduciary duties related to the alleged asbestos contamination in body powders containing talc, primarily JOHNSON’S ® Baby Powder, and that Johnson & Johnson has suffered damages as a result of those alleged breaches. Plaintiff is seeking damages and an order for the Company to reform its internal policies and procedures. In January 2019, two ERISA class action lawsuits were filed by participants in the Johnson & Johnson Savings Plan against Johnson & Johnson, its Pension and Benefits Committee, and certain named officers in the United States District Court for the District of New Jersey, alleging that the defendants breached their fiduciary duties by offering Johnson & Johnson stock as a Johnson & Johnson Savings Plan investment option when it was imprudent to do so because of failures to disclose alleged asbestos contamination in body powders containing talc, primarily JOHNSON’S ® Baby Powder. Plaintiffs are seeking damages and injunctive relief. A lawsuit is pending in the United States District Court for the Central District of California alleging violations of Proposition 65, California’s Unfair Competition Law and False Advertising Law. In addition, the Company has received preliminary inquiries and subpoenas to produce documents regarding these matters from Senator Murray, a member of the Senate Committee on Health, Education, Labor and Pensions, the Department of Justice, the Securities and Exchange Commission and the U.S. Congressional Subcommittee on Economic and Consumer Policy. The Company is cooperating with these government inquiries and will be producing documents in response. 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 various state courts including Pennsylvania, Kentucky, Louisiana 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 (CAFC). In February 2019, the CAFC affirmed the judgment in favor of JJVCI. 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. In March 2019, the district court denied Medinol’s motion for a new trial. 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 (’132); 8,721,730 (’730) and 9,492,280 (’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, and a claim construction order was issued in November 2018. In December 2018, MedIdea stipulated to non-infringement of the ’132, ’730 and ’280 patents, based on the district court’s claim construction and reserving its right to appeal that construction, leaving only the ’426 patent at issue before the district court. In January 2019, the district court stayed the case pending a decision in the Inter Partes Review proceeding on the ’426 patent (see below). 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 two claims of the ’426 patent asserted in the district court litigation, and in June 2018, the USPTO instituted review of those claims. A hearing was held in March 2019, an d in April 2019, the USPTO issued its decision upholding the validity 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 ’735 patent, the ’310 patent and the ’759 patent remain in dispute. Trial is scheduled to begin in September 2019. In December 2016, Dr. Ford Albritton sued Acclarent, Inc. (“Acclarent”) in United States District Court for the Northern District of Texas alleging that Acclarent’s RELIEVA ® Spin and RELIEVEA SpinPlus ® products infringe U.S. Patent No. 9,011,412 (the ’412 patent). Dr. Albritton also alleges breach of contract, fraud and that he is the true owner of Acclarent’s U.S. Patent No. 8,414,473. In December 2016, Acclarent filed a petition for Inter Partes Review (IPR) with the United States Patent and Trademark Office (USPTO) challenging the validity of the ’412 patent. The USPTO instituted the IPR in July 2017. In July 2018, the USPTO ruled in favor of Albritton in the IPR, finding that Acclarent had not met its burden of proof that the challenged claims were invalid. Acclarent appealed the IPR decision in September 2018. A second IPR petition was not instituted. Trial is scheduled for October 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. In December 2018, Ethicon filed petitions with the USPTO, seeking Inter Partes Review (IPR) of both asserted patents. Those petitions have been stayed by the USPTO pending a decision by the U.S. Court of Appeals for the Federal Circuit in an unrelated case. Pharmaceutical 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 is 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. In April 2018, Acerta Pharma B.V., AstraZeneca UK Ltd and AstraZeneca Pharmaceuticals LP filed a patent infringement lawsuit in the United States District Court for the District of Delaware against Pharmacyclics LLC and Abbvie Inc. (collectively, Abbvie), alleging that the manufacture and sale of IMBRUVICA ® infringes U.S. Patent No. 7,459,554. Janssen Biotech, Inc., which commercializes IMBRUVICA ® jointly with Abbvie, intervened in the action in November 2018. A trial is scheduled to begin in January 2021. 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. In July 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 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 and invalidity of the applicable patents. In the event the subsidiaries are not successful in an action, or the automatic statutory stay of the ANDAs expires before the United States District Court rulings are obtained, the third-party companies involved would have the ability, upon approval of the FDA, to introduce generic versions of their products to the market, resulting in the potential for substantial market share and revenue losses for the applicable 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 types of 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 at times by generic companies in conjunction with ANDAs and lawsuits, to challenge the applicable patents. 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 (the main action) 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 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); 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 201 |
Restructuring
Restructuring | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | RESTRUCTURING 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 first quarter of 2019, the Company recorded a pre-tax charge of $90 million , of which $23 million was included in cost of products sold and $31 million was included in other (income) expense. Total project costs of $0.3 billion have been recorded since the restructuring was announced. See the following table for additional details on the restructuring program. 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. 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 through the fiscal first quarter of 2019: (Dollars in Millions) Severance Asset Write-offs Other** Total Reserve balance, December 30, 2018 $ 194 — 48 242 Current year activity: Charges — 23 67 90 Cash payments (1 ) — (108 ) (109 ) Settled non cash — (23 ) — (23 ) Reserve balance, March 31, 2019* $ 193 — 7 200 *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. |
Fair Value Measurements (Polici
Fair Value Measurements (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
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) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | As noted in the Company’s 2018 10-K, the approximate minimum rental payments required under operating leases that had initial or remaining non-cancelable lease terms in excess of one year at December 30, 2018 were: (Dollars in Millions) 2019 2020 2021 2022 2023 After 2023 Total $223 188 154 116 76 139 896 |
Schedule of Maturities of Lease Liabilities Related to Operating Leases | The minimum rental payments required under operating leases that have initial or remaining non-cancellable lease terms in excess of one year as of March 31, 2019 are: (Dollars in Millions) Operating Leases 2019 (excluding the fiscal first quarter ended March 31, 2019) $ 198 2020 222 2021 177 2022 126 2023 81 After 2023 194 Total lease payments 998 Less: Interest 93 Present Value of lease liabilities $ 905 |
Schedule of Supplemental Balance Sheet Information | Supplemental balance sheet information (for the fiscal first quarter ended March 31, 2019) : (Dollars in Millions) Non-current operating lease right-of-use assets $ 879 Current operating lease liabilities 249 Non-current Operating lease liabilities 656 Total operating lease liabilities $ 905 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | (Dollars in Millions) March 31, 2019 December 30, 2018 Raw materials and supplies $ 1,177 1,114 Goods in process 2,081 2,109 Finished goods 5,828 5,376 Total inventories (1) $ 9,086 8,599 (1) Net of assets held for sale on the Consolidated Balance Sheet for approximately $0.2 billion related to the divestiture of the Advanced Sterilization Products business and $0.2 billion related to the strategic collaboration with Jabil Inc., both of which were pending as of March 31, 2019. Net of assets held for sale of approximately $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., both of which were pending as of December 30, 2018. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | (Dollars in Millions) March 31, 2019 December 30, 2018 Intangible assets with definite lives: Patents and trademarks — gross $ 35,963 35,194 Less accumulated amortization 10,548 9,784 Patents and trademarks — net 25,415 25,410 Customer relationships and other intangibles — gross 21,766 21,334 Less accumulated amortization 8,586 8,323 Customer relationships and other intangibles — net 13,180 13,011 Intangible assets with indefinite lives: Trademarks 6,912 6,937 Purchased in-process research and development (1) 1,391 2,253 Total intangible assets with indefinite lives 8,303 9,190 Total intangible assets — net $ 46,898 47,611 (1) In the fiscal first quarter of 2019, the Company recorded an IPR&D impairment charge of $0.9 billion for the remaining intangible asset value 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 Biopharma Inc. The impairment charge was based on additional information, including clinical data, which became available and led to the Company's decision to abandon the development of AL-8176. A partial impairment charge of $0.8 billion was previously recorded in the fiscal third quarter of 2018 related to the development program of AL-8176. |
Goodwill | Goodwill as of March 31, 2019 was allocated by segment of business as follows: (Dollars in Millions) Consumer Pharm Med Devices Total Goodwill, net at December 30, 2018 $ 8,670 9,063 12,720 30,453 Goodwill, related to acquisitions 1,176 — 23 1,199 Goodwill, related to divestitures — — — — Currency translation/Other (116 ) (75 ) (11 ) (202 ) Goodwill, net at March 31, 2019 $ 9,730 8,988 12,732 31,450 Goodwill is net of approximately $0.3 billion related to the divestiture of the Advanced Sterilization Products business, which was pending and classified as assets held for sale on the Consolidated Balance Sheet as of March 31, 2019. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of Derivative Activity | The following table is the effect of net investment hedges for the fiscal first quarters ended in 2019 and 2018 : 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) March 31, 2019 April 1, 2018 March 31, 2019 April 1, 2018 Debt $ 71 (150 ) Other (income) expense — — Cross Currency interest rate swaps $ 370 — Other (income) expense — — The following table is a summary of the activity related to derivatives and hedges for the fiscal first quarters ended in 2019 and 2018 : March 31, 2019 April 1, 2018 (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 $ — — — 1 — — — — 5 — Derivatives designated as hedging instruments — — — (1 ) — — — — (5 ) — 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 — — — 38 — — — — — — Amount of gain or (loss) recognized in AOCI — — — 38 — — — — — — Gain (Loss) on cash flow hedging relationship: Forward foreign exchange contracts: Amount of gain or (loss) reclassified from AOCI into income (21 ) (35 ) (139 ) — 6 29 2 (238 ) — (11 ) Amount of gain or (loss) recognized in AOCI (6 ) (296 ) (110 ) — 13 31 3 (237 ) — (18 ) Cross currency interest rate swaps contracts: Amount of gain or (loss) reclassified from AOCI into income — — — 55 — — — — 40 — Amount of gain or (loss) recognized in AOCI $ — — — 59 — — — — 57 — |
Schedule of Derivatives Recorded in Consolidated Balance Sheet | As of March 31, 2019 and December 30, 2018 , 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) March 31, 2019 December 30, 2018 March 31, 2019 December 30, 2018 Current Portion of Long-term Debt $ 499 494 1 5 Long-term Debt — — — — |
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 first quarters in 2019 and 2018: Gain/(Loss) Recognized In Income on Derivative (Dollars in Millions) Location of Gain /(Loss) Recognized in Income on Derivative Fiscal First Quarters Ended Derivatives Not Designated as Hedging Instruments March 31, 2019 April 1, 2018 Foreign Exchange Contracts Other (income) expense (38 ) (19 ) |
Summary of Activity Related to Equity Investments | The following table is a summary of the activity related to equity investments: (Dollars in Millions) December 30, 2018 March 31, 2019 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 $ 511 143 176 830 830 Equity Investments without readily determinable value $ 681 4 13 698 698 (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 March 31, 2019 and December 30, 2018 were as follows: March 31, 2019 December 30, 2018 (Dollars in Millions) Level 1 Level 2 Level 3 Total Total (1) Derivatives designated as hedging instruments: Assets: Forward foreign exchange contracts $ — 280 — 280 501 Interest rate contracts (2)(4) — 383 — 383 161 Total — 663 — 663 662 Liabilities: Forward foreign exchange contracts — 571 — 571 548 Interest rate contracts (3)(4) — 295 — 295 292 Total — 866 — 866 840 Derivatives not designated as hedging instruments: Assets: Forward foreign exchange contracts — 33 — 33 32 Liabilities: Forward foreign exchange contracts — 26 — 26 32 Other Investments: Equity investments (5) 830 — — 830 511 Debt securities (6) $ — 4,673 — 4,673 9,734 Gross to Net Derivative Reconciliation March 31, 2019 December 30, 2018 (Dollars in Millions) Total Gross Assets $ 696 694 Credit Support Agreement (CSA) (592 ) (423 ) Total Net Asset 104 271 Total Gross Liabilities 892 872 Credit Support Agreement (CSA) (652 ) (605 ) Total Net Liabilities $ 240 267 (1) December 30, 2018 assets and liabilities are all classified as Level 2 with the exception of equity investments of $511 million , which are classified as Level 1. (2) Includes $6 million of non-current other assets for December 30, 2018 . (3) Includes $2 million and $3 million of non-current other liabilities for March 31, 2019 and December 30, 2018 , 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 $830 million and $511 million as of March 31, 2019 and December 30, 2018 , respectively. (6) Classified within cash equivalents and current marketable securities. |
Marketable Securities | The Company's cash, cash equivalents and current marketable securities as of March 31, 2019 comprised: March 31, 2019 (Dollars in Millions) Carrying Amount Estimated Fair Value Cash & Cash Equivalents Current Marketable Securities Cash $ 2,778 2,778 2,778 Other sovereign securities (1) 190 190 190 U.S. reverse repurchase agreements 2,068 2,068 2,068 Other reverse repurchase agreements 350 350 350 Corporate debt securities (1) 549 549 449 100 Money market funds 4,195 4,195 4,195 Time deposits (1) 533 533 533 Subtotal 10,663 10,663 10,563 100 Government securities 4,412 4,412 4,143 269 Other sovereign securities — — — — Corporate debt securities 261 261 28 233 Subtotal available for sale debt (2) $ 4,673 4,673 4,171 502 Total cash, cash equivalents and current marketable securities 14,734 602 (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 March 31, 2019 are as follows: (Dollars in Millions) Cost Basis Fair Value Due within one year $ 4,613 4,613 Due after one year through five years 60 60 Due after five years through ten years — — Total debt securities $ 4,673 4,673 |
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 March 31, 2019 : (Dollars in Millions) Carrying Amount Estimated Fair Value Financial Liabilities Current Debt $ 1,708 1,708 Non-Current Debt 3% Zero Coupon Convertible Subordinated Debentures due in 2020 51 98 1.950% Notes due 2020 499 496 2.95% Debentures due 2020 548 553 3.55% Notes due 2021 449 460 2.45% Notes due 2021 349 350 1.65% Notes due 2021 999 985 0.250% Notes due 2022 (1B Euro 1.1222) 1,120 1,135 2.25% Notes due 2022 997 993 6.73% Debentures due 2023 250 298 3.375% Notes due 2023 805 838 2.05% Notes due 2023 498 492 0.650% Notes due 2024 (750MM Euro 1.1222) 838 866 5.50% Notes due 2024 (500 MM GBP 1.3114) 651 795 2.625% Notes due 2025 748 748 2.45% Notes due 2026 1,992 1,947 2.95% Notes due 2027 996 1,001 2.90% Notes due 2028 1,493 1,485 1.150% Notes due 2028 (750MM Euro 1.1222) 834 885 6.95% Notes due 2029 297 397 4.95% Debentures due 2033 498 587 4.375% Notes due 2033 856 961 1.650% Notes due 2035 (1.5B Euro 1.1222) 1,667 1,809 3.55% Notes due 2036 988 996 5.95% Notes due 2037 991 1,294 3.625% Notes due 2037 1,486 1,510 3.40% Notes due 2038 990 978 5.85% Debentures due 2038 696 908 4.50% Debentures due 2040 538 605 4.85% Notes due 2041 297 351 4.50% Notes due 2043 495 563 3.70% Notes due 2046 1,972 2,005 3.75% Notes due 2047 991 1,017 3.50% Notes due 2048 742 731 Other 39 39 Total Non-Current Debt $ 27,660 29,176 |
Pensions and Other Benefit Pl_2
Pensions and Other Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 first quarters of 2019 and 2018 include the following components: Retirement Plans Other Benefit Plans (Dollars in Millions) March 31, 2019 April 1, 2018 March 31, 2019 April 1, 2018 Service cost 276 309 68 67 Interest cost 275 252 46 37 Expected return on plan assets (583 ) (560 ) (2 ) (2 ) Amortization of prior service cost/(credit) 1 1 (8 ) (8 ) Recognized actuarial losses 144 215 32 30 Curtailments and settlements (1 ) (2 ) — — Net periodic benefit cost 112 215 136 124 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 30, 2018 $ (8,869 ) — (6,158 ) (195 ) (15,222 ) Net change (258 ) — 169 (206 ) (295 ) March 31, 2019 $ (9,127 ) — (5,989 ) (401 ) (15,517 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 first quarters ended March 31, 2019 and April 1, 2018 : (Shares in Millions) March 31, 2019 April 1, 2018 Basic net earnings per share 1.41 1.63 Average shares outstanding — basic 2,660.8 2,682.2 Potential shares exercisable under stock option plans 136.7 139.5 Less: shares which could be repurchased under treasury stock method (99.4 ) (90.6 ) Convertible debt shares 0.7 0.8 Average shares outstanding — diluted 2,698.8 2,731.9 Diluted net earnings per share 1.39 1.60 |
Segments of Business and Geog_2
Segments of Business and Geographic Areas (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Sales By Segment Of Business | SALES BY SEGMENT OF BUSINESS Fiscal First Quarters Ended (Dollars in Millions) March 31, April 1, Percent Change CONSUMER Baby Care U.S. $ 87 97 (10.9 )% International 307 360 (14.8 ) Worldwide 394 457 (14.0 ) Beauty U.S. 588 611 (3.8 ) International 502 473 6.2 Worldwide 1,090 1,084 0.6 Oral Care U.S. 151 157 (3.5 ) International 216 222 (2.8 ) Worldwide 367 379 (3.1 ) OTC U.S. 507 465 9.1 International 580 607 (4.6 ) Worldwide 1,087 1,072 1.3 Women's Health U.S. 3 3 4.2 International 222 240 (7.5 ) Worldwide 225 243 (7.3 ) Wound Care/Other U.S. 102 103 (0.9 ) International 53 60 (11.6 ) Worldwide 155 163 (4.8 ) TOTAL CONSUMER U.S. 1,438 1,436 0.2 International 1,880 1,962 (4.2 ) Worldwide 3,318 3,398 (2.4 ) PHARMACEUTICAL Immunology U.S. 2,163 2,000 8.1 International 1,088 1,042 4.5 Worldwide 3,251 3,042 6.9 REMICADE ® U.S. 774 916 (15.5 ) U.S. Exports 76 142 (46.4 ) International 252 331 (23.6 ) Worldwide 1,102 1,389 (20.6 ) SIMPONI / SIMPONI ARIA ® U.S. 263 224 17.0 International 261 294 (11.1 ) Worldwide 524 518 1.0 STELARA ® U.S. 882 652 35.2 International 523 409 27.9 Worldwide 1,405 1,061 32.4 TREMFYA ® U.S. 168 66 * International 49 6 * Worldwide 217 72 * OTHER IMMUNOLOGY U.S. — — — International 3 2 19.5 Worldwide 3 2 19.5 Infectious Diseases U.S. 357 333 7.3 International 489 497 (1.7 ) Worldwide 846 830 1.9 EDURANT ® / rilpivirine U.S. 12 14 (18.8 ) International 199 196 2.2 Worldwide 211 210 0.8 PREZISTA ® / PREZCOBIX ® / REZOLSTA ® / SYMTUZA ® U.S. 315 273 15.5 International 208 205 1.5 Worldwide 523 478 9.5 OTHER INFECTIOUS DISEASES U.S. 30 46 (33.8 ) International 82 96 (16.0 ) Worldwide 112 142 (21.7 ) Neuroscience U.S. 723 624 16.0 International 905 935 (3.2 ) Worldwide 1,629 1,559 4.5 CONCERTA ® / Methylphenidate U.S. 97 66 47.7 International 116 107 8.5 Worldwide 214 173 23.4 INVEGA SUSTENNA ® / XEPLION ® / INVEGA TRINZA ® / TREVICTA ® U.S. 483 400 20.7 International 307 296 3.8 Worldwide 790 696 13.5 RISPERDAL CONSTA ® U.S. 77 82 (6.8 ) International 102 114 (10.3 ) Worldwide 179 196 (8.8 ) OTHER NEUROSCIENCE U.S. 66 76 (12.0 ) International 379 418 (9.2 ) Worldwide 446 494 (9.6 ) Oncology U.S. 962 933 3.1 International 1,556 1,378 13.0 Worldwide 2,518 2,311 9.0 DARZALEX ® U.S. 352 264 33.0 International 277 168 65.1 Worldwide 629 432 45.5 IMBRUVICA ® U.S. 349 227 53.7 International 435 360 20.8 Worldwide 784 587 33.5 VELCADE ® U.S. — — — International 263 313 (16.0 ) Worldwide 263 313 (16.0 ) ZYTIGA ® / abiraterone acetate U.S. 185 407 (54.5 ) International 494 438 12.9 Worldwide 679 845 (19.6 ) OTHER ONCOLOGY U.S. 76 35 * International 87 99 (12.2 ) Worldwide 163 134 21.7 Pulmonary Hypertension U.S. 430 361 19.2 International 226 224 0.7 Worldwide 656 585 12.1 OPSUMIT ® U.S. 172 149 15.9 International 133 122 8.9 Worldwide 306 271 12.7 TRACLEER ® U.S. 61 68 (10.1 ) International 56 72 (22.9 ) Worldwide 117 140 (16.7 ) UPTRAVI ® U.S. 176 124 41.4 International 22 16 42.8 Worldwide 198 140 41.6 OTHER U.S. 21 20 3.6 International 15 14 4.6 Worldwide 35 34 4.0 Cardiovascular / Metabolism / Other U.S. 947 1,103 (14.1 ) International 398 414 (3.9 ) Worldwide 1,345 1,517 (11.3 ) XARELTO ® U.S. 542 578 (6.3 ) International — — — Worldwide 542 578 (6.3 ) INVOKANA ® / INVOKAMET ® U.S. 154 204 (24.8 ) International 49 44 11.6 Worldwide 202 248 (18.4 ) PROCRIT ® / EPREX ® U.S. 148 189 (21.6 ) International 78 87 (10.2 ) Worldwide 226 276 (18.0 ) OTHER U.S. 104 132 (21.3 ) International 271 283 (4.4 ) Worldwide 374 415 (9.7 ) TOTAL PHARMACEUTICAL U.S. 5,582 5,354 4.3 International 4,662 4,490 3.9 Worldwide 10,244 9,844 4.1 MEDICAL DEVICES Diabetes Care U.S. — 117 * International — 222 * Worldwide — 339 * Interventional Solutions U.S. 343 304 12.6 International 389 336 15.8 Worldwide 732 640 14.3 Orthopaedics U.S. 1,318 1,307 0.9 International 885 943 (6.2 ) Worldwide 2,204 2,250 (2.1 ) HIPS U.S. 213 209 2.1 International 148 154 (3.8 ) Worldwide 361 363 (0.4 ) KNEES U.S. 223 228 (2.2 ) International 146 159 (8.2 ) Worldwide 369 387 (4.7 ) TRAUMA U.S. 417 407 2.5 International 268 289 (7.0 ) Worldwide 685 696 (1.4 ) SPINE & OTHER U.S. 465 463 0.3 International 323 341 (5.5 ) Worldwide 788 804 (2.2 ) Surgery U.S. 1,001 993 0.8 International 1,394 1,430 (2.6 ) Worldwide 2,395 2,423 (1.2 ) ADVANCED U.S. 404 393 2.9 International 576 573 0.5 Worldwide 980 966 1.5 GENERAL U.S. 425 423 0.3 International 665 704 (5.6 ) Worldwide 1,089 1,127 (3.4 ) SPECIALTY U.S. 172 177 (2.5 ) International 153 153 (0.2 ) Worldwide 325 330 (1.4 ) Vision U.S. 446 440 1.5 International 682 675 1.1 Worldwide 1,129 1,115 1.2 CONTACT LENSES / OTHER U.S. 321 309 4.1 International 502 498 1.0 Worldwide 824 807 2.1 SURGICAL U.S. 125 131 (4.5 ) International 180 177 1.3 Worldwide 305 308 (1.1 ) TOTAL MEDICAL DEVICES U.S. 3,109 3,161 (1.6 ) International 3,350 3,606 (7.1 ) Worldwide 6,459 6,767 (4.6 ) WORLDWIDE U.S. 10,129 9,951 1.8 International 9,892 10,058 (1.7 ) Worldwide $ 20,021 20,009 0.1 % *Percentage greater than 100% or not meaningful |
Operating Profit by Segment of Business | EARNINGS BEFORE PROVISION FOR TAXES BY SEGMENT Fiscal First Quarters Ended (Dollars in Millions) March 31, April 1, Percent Change Consumer (1) $ 741 548 35.2 % Pharmaceutical (2) 2,331 3,666 (36.4 ) Medical Devices (3) 1,497 1,579 (5.2 ) Segment earnings before provision for taxes 4,569 5,793 (21.1 ) Less: Expense not allocated to segments (4) 147 312 Worldwide income before tax $ 4,422 5,481 (19.3 )% (1) Includes a gain of $0.3 billion related to the Company's previously held equity investment in Ci:z Holdings Co., Ltd. (Dr. Ci: Labo) Includes amortization expense of $0.1 billion and $0.1 billion in the fiscal first quarters of 2019 and 2018, respectively. (2) Includes an in-process research and development expense of $0.9 billion related to the Alios asset, litigation expense of $0.3 billion and an unrealized gain on securities of $0.1 billion in the fiscal first quarter of 2019. Additionally, the fiscal first quarter of 2019 includes increased research and development expense primarily $0.3 billion related to an upfront payment to argenx and increased investment to advance the pipeline. Includes Actelion acquisition related costs of $0.1 billion in the fiscal first quarter of 2018. Includes amortization expense of $0.8 billion and $0.8 billion in the fiscal first quarters of 2019 and 2018, respectively. (3) Includes a restructuring related charge of $0.1 billion and $0.1 billion in the fiscal first quarters of 2019 and 2018, respectively. Includes litigation expense of $0.1 billion in the fiscal first quarter of 2019. Includes amortization expense of $0.2 billion and $0.3 billion in the fiscal first quarters of 2019 and 2018, 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 First Quarters Ended (Dollars in Millions) March 31, 2019 April 1, 2018 Percent Change United States $ 10,129 9,951 1.8 % Europe 4,609 4,797 (3.9 ) Western Hemisphere, excluding U.S. 1,503 1,567 (4.1 ) Asia-Pacific, Africa 3,780 3,694 2.3 Total $ 20,021 20,009 0.1 % |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve | The following table summarizes the severance related reserves and the associated spending through the fiscal first quarter of 2019: (Dollars in Millions) Severance Asset Write-offs Other** Total Reserve balance, December 30, 2018 $ 194 — 48 242 Current year activity: Charges — 23 67 90 Cash payments (1 ) — (108 ) (109 ) Settled non cash — (23 ) — (23 ) Reserve balance, March 31, 2019* $ 193 — 7 200 *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) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Weighted average remaining lease term | 5 years 9 months 18 days |
Weighted average discount rate | 3.00% |
Operating lease costs | $ 74 |
Operating lease payments | $ 71 |
Minimum | Accounting Standards Update 2016-02 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Operating lease, term of contract | 1 year |
Maximum | Accounting Standards Update 2016-02 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Operating lease, term of contract | 37 years |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Schedule of Future Minimum Rental Payments for Operating Leases (Details) $ in Millions | Dec. 30, 2018USD ($) |
Accounting Policies [Abstract] | |
2019 | $ 223 |
2020 | 188 |
2021 | 154 |
2022 | 116 |
2023 | 76 |
After 2023 | 139 |
Total | $ 896 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Maturities of Lease Liabilities Related to Operating Leases (Details) $ in Millions | Mar. 31, 2019USD ($) |
Accounting Policies [Abstract] | |
2019 (excluding the fiscal first quarter ended March 31, 2019) | $ 198 |
2020 | 222 |
2021 | 177 |
2022 | 126 |
2023 | 81 |
After 2023 | 194 |
Total lease payments | 998 |
Less: Interest | 93 |
Present Value of lease liabilities | $ 905 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Supplemental Balance Sheet Information (Details) $ in Millions | Mar. 31, 2019USD ($) |
Accounting Policies [Abstract] | |
Non-current operating lease right-of-use assets | $ 879 |
Current operating lease liabilities | 249 |
Non-current Operating lease liabilities | 656 |
Total operating lease liabilities | $ 905 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 30, 2018 |
Summary of Inventories | ||
Raw materials and supplies | $ 1,177 | $ 1,114 |
Goods in process | 2,081 | 2,109 |
Finished goods | 5,828 | 5,376 |
Total inventories | 9,086 | 8,599 |
AdvancedSterilizationProducts | Discontinued Operations, Held-for-sale or Disposed of by Sale | ||
Summary of Inventories | ||
Disposal group inventory | 200 | |
Assets held for sale, current | 200 | 200 |
Supply Chain | Discontinued Operations, Held-for-sale or Disposed of by Sale | ||
Summary of Inventories | ||
Assets held for sale, current | $ 200 | $ 300 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Sep. 30, 2018 | Dec. 30, 2018 | |
Intangible assets with indefinite lives: | |||
Indefinite-Lived Intangible Assets | $ 8,303 | $ 9,190 | |
Total intangible assets - net | 46,898 | 47,611 | |
Trademarks | |||
Intangible assets with indefinite lives: | |||
Indefinite-Lived Intangible Assets | 6,912 | 6,937 | |
Purchased In-Process Research And Development | |||
Intangible assets with indefinite lives: | |||
Indefinite-Lived Intangible Assets | 1,391 | 2,253 | |
Patents And Trademarks | |||
Intangible assets with definite lives: | |||
Finite-Lived Intangible Assets, Gross | 35,963 | 35,194 | |
Less accumulated amortization | 10,548 | 9,784 | |
Finite-Lived Intangible Assets, Net | 25,415 | 25,410 | |
Customer relationships and other intangible assets | |||
Intangible assets with definite lives: | |||
Finite-Lived Intangible Assets, Gross | 21,766 | 21,334 | |
Less accumulated amortization | 8,586 | 8,323 | |
Finite-Lived Intangible Assets, Net | 13,180 | $ 13,011 | |
Alios Biopharma Inc | Purchased In-Process Research And Development | |||
Intangible assets with indefinite lives: | |||
Impairment charge | $ 900 | $ 800 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill - Goodwill By Segment (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Goodwill [Roll Forward] | |
Goodwill Beginning of Period | $ 30,453 |
Goodwill, related to acquisitions | 1,199 |
Goodwill, related to divestitures | 0 |
Currency translation/Other | (202) |
Goodwill End of Period | 31,450 |
CONSUMER | |
Goodwill [Roll Forward] | |
Goodwill Beginning of Period | 8,670 |
Goodwill, related to acquisitions | 1,176 |
Goodwill, related to divestitures | 0 |
Currency translation/Other | (116) |
Goodwill End of Period | 9,730 |
PHARMACEUTICAL | |
Goodwill [Roll Forward] | |
Goodwill Beginning of Period | 9,063 |
Goodwill, related to acquisitions | 0 |
Goodwill, related to divestitures | 0 |
Currency translation/Other | (75) |
Goodwill End of Period | 8,988 |
Medical Devices | |
Goodwill [Roll Forward] | |
Goodwill Beginning of Period | 12,720 |
Goodwill, related to acquisitions | 23 |
Goodwill, related to divestitures | 0 |
Currency translation/Other | (11) |
Goodwill End of Period | $ 12,732 |
Intangible Assets and Goodwil_4
Intangible Assets and Goodwill - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2019 | Sep. 30, 2018 | Apr. 01, 2018 | Dec. 30, 2018 | |
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 | 1,100 | $ 1,100 | ||
Goodwill | 31,450 | $ 30,453 | ||
Patents And Trademarks | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Net | $ 25,415 | 25,410 | ||
Intangible Assets and Goodwill (Textuals) | ||||
Finite-Lived Intangible Assets, Weighted-Average Useful Life | 12 years | |||
Customer relationships and other intangible assets | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Net | $ 13,180 | 13,011 | ||
Intangible Assets and Goodwill (Textuals) | ||||
Finite-Lived Intangible Assets, Weighted-Average Useful Life | 21 years | |||
Consumer | ||||
Intangible Assets and Goodwill (Textuals) | ||||
Goodwill | $ 9,730 | 8,670 | ||
PHARMACEUTICAL | ||||
Intangible Assets and Goodwill (Textuals) | ||||
Goodwill | 8,988 | 9,063 | ||
Medical Devices | ||||
Intangible Assets and Goodwill (Textuals) | ||||
Goodwill | 12,732 | $ 12,720 | ||
Goodwill | AdvancedSterilizationProducts | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Disposal Group, Including Discontinued Operation, Other Assets, Noncurrent | 300 | |||
Alios Biopharma Inc | Purchased In-Process Research And Development | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment charge | $ 900 | $ 800 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | Dec. 30, 2018 | |
Derivative [Line Items] | |||
Available-for-sale Securities, Equity Securities | $ 830 | $ 511 | |
Accumulated other comprehensive income on derivatives, after tax | $ (401) | ||
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 | $ 0 | |
Weighted average interest rate on non-current debt | 3.19% | ||
Excess of the estimated fair value over the carrying value of debt | 300 | ||
Foreign exchange contracts | |||
Derivative [Line Items] | |||
Collateral Already Posted, Aggregate Fair Value | $ 60 | ||
Derivative notional amounts outstanding | 44,000 | 41,100 | |
Cross currency interest rate swaps | |||
Derivative [Line Items] | |||
Derivative notional amounts outstanding | 11,300 | 7,300 | |
Interest Rate Contract | |||
Derivative [Line Items] | |||
Derivative Liability, Noncurrent | 2 | 3 | |
Derivative notional amounts outstanding | 500 | 500 | |
Equity Securities | |||
Derivative [Line Items] | |||
Available-for-sale Securities, Equity Securities | 830 | $ 511 | |
Equity Investments without readily determinable value | Equity Securities | |||
Derivative [Line Items] | |||
Equity, Fair Value Adjustment, Impairment Loss | (11) | ||
Changes in fair value, changes in observable prices | $ 15 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Derivative Activity (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Apr. 01, 2018 | Dec. 30, 2018 | |
Summary of designated derivatives | |||
Gain/ (Loss) reclassified from Accumulated OCI into income | $ (96) | $ (178) | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, after Tax | (302) | (164) | |
Interest Rate Contract | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Notional Amount | 500 | $ 500 | |
Foreign exchange contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Collateral Already Posted, Aggregate Fair Value | 60 | ||
Derivative, Notional Amount | 44,000 | 41,100 | |
Cross currency interest rate swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Notional Amount | 11,300 | $ 7,300 | |
Fair Value Hedging | Interest Rate Contract | Sales to customers | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | 0 | 0 | |
Fair Value Hedging | Interest Rate Contract | Cost of products sold | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | 0 | 0 | |
Fair Value Hedging | Interest Rate Contract | Research and Development Expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | 0 | 0 | |
Fair Value Hedging | Interest Rate Contract | Other (income) expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | 0 | 0 | |
Fair Value Hedging | Interest Rate Contract | Interest (income)/Interest expense, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | 1 | 5 | |
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 | |
Unrealized gain (loss) arising during period | 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 | |
Unrealized gain (loss) arising during period | 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 | |
Unrealized gain (loss) arising during period | 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 | |
Unrealized gain (loss) arising during period | 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 | 38 | 0 | |
Unrealized gain (loss) arising during period | 38 | 0 | |
Fair Value Hedging | Designated as Hedging Instrument | Interest Rate Contract | Sales to customers | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | 0 | 0 | |
Fair Value Hedging | Designated as Hedging Instrument | Interest Rate Contract | Cost of products sold | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | 0 | 0 | |
Fair Value Hedging | Designated as Hedging Instrument | Interest Rate Contract | Research and Development Expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | 0 | 0 | |
Fair Value Hedging | Designated as Hedging Instrument | Interest Rate Contract | Other (income) expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | 0 | 0 | |
Fair Value Hedging | Designated as Hedging Instrument | Interest Rate Contract | Interest (income)/Interest expense, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | (1) | (5) | |
Cash Flow Hedging | Foreign exchange contracts | Sales to customers | |||
Summary of designated derivatives | |||
Gain/ (Loss) reclassified from Accumulated OCI into income | (21) | 29 | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, after Tax | (6) | 31 | |
Cash Flow Hedging | Foreign exchange contracts | Cost of products sold | |||
Summary of designated derivatives | |||
Gain/ (Loss) reclassified from Accumulated OCI into income | (35) | 2 | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, after Tax | (296) | 3 | |
Cash Flow Hedging | Foreign exchange contracts | Research and Development Expense | |||
Summary of designated derivatives | |||
Gain/ (Loss) reclassified from Accumulated OCI into income | (139) | (238) | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, after Tax | (110) | (237) | |
Cash Flow Hedging | Foreign exchange contracts | Other (income) expense | |||
Summary of designated derivatives | |||
Gain/ (Loss) reclassified from Accumulated OCI into income | 6 | (11) | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, after Tax | 13 | (18) | |
Cash Flow Hedging | Foreign exchange contracts | Interest (income)/Interest expense, net | |||
Summary of designated derivatives | |||
Gain/ (Loss) reclassified from Accumulated OCI into income | 0 | 0 | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, after Tax | 0 | 0 | |
Cash Flow Hedging | Cross currency interest rate swaps | Sales to customers | |||
Summary of designated derivatives | |||
Gain/ (Loss) reclassified from Accumulated OCI into income | 0 | 0 | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, after Tax | 0 | 0 | |
Cash Flow Hedging | Cross currency interest rate swaps | Cost of products sold | |||
Summary of designated derivatives | |||
Gain/ (Loss) reclassified from Accumulated OCI into income | 0 | 0 | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, after Tax | 0 | 0 | |
Cash Flow Hedging | Cross currency interest rate swaps | Research and Development Expense | |||
Summary of designated derivatives | |||
Gain/ (Loss) reclassified from Accumulated OCI into income | 0 | 0 | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, after Tax | 0 | 0 | |
Cash Flow Hedging | Cross currency interest rate swaps | Other (income) expense | |||
Summary of designated derivatives | |||
Gain/ (Loss) reclassified from Accumulated OCI into income | 0 | 0 | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, after Tax | 0 | 0 | |
Cash Flow Hedging | Cross currency interest rate swaps | Interest (income)/Interest expense, net | |||
Summary of designated derivatives | |||
Gain/ (Loss) reclassified from Accumulated OCI into income | 55 | 40 | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, after Tax | $ 59 | $ 57 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Derivatives Recorded in Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 30, 2018 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Carrying Amount of the Hedged Liability | $ 240 | $ 267 |
Current Portion of Long-term Debt | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Carrying Amount of the Hedged Liability | 499 | 494 |
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liability | 1 | 5 |
Long-term Debt | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Carrying Amount of the Hedged Liability | 0 | 0 |
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liability | $ 0 | $ 0 |
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 | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Not Designated as Hedging Instrument | Foreign exchange contracts | Other (income) expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain/(Loss) Recognized In Income on Derivative | $ (38) | $ (19) |
Fair Value Measurements - Sch_3
Fair Value Measurements - Schedule of Effect of Net Investment Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain/(Loss) Recognized In Accumulated OCI | $ 71 | $ (150) |
Sale of Subsidiary Gain (Loss) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain/(Loss) Reclassified From Accumulated OCI Into Income | 0 | 0 |
Other Income Expense Net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain/(Loss) Reclassified From Accumulated OCI Into Income | 0 | 0 |
Cross Currency Interest Rate Contract | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain/(Loss) Recognized In Accumulated OCI | $ 370 | $ 0 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Activity Related to Equity Investments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Dec. 30, 2018 | |
Equity Investment [Roll Forward] | ||
Non Current Other Assets | $ 5,159 | $ 4,182 |
Equity Securities | Equity Investments with readily determinable value | ||
Equity Investment [Roll Forward] | ||
Carrying value, beginning of period | 511 | |
Changes in Fair Value Reflected in Net Income | 143 | |
Sales/ Purchases/Other | 176 | |
Carrying value, end of period | 830 | |
Non Current Other Assets | 830 | |
Equity Securities | Equity Investments without readily determinable value | ||
Equity Investment [Roll Forward] | ||
Carrying value, beginning of period | 681 | |
Changes in Fair Value Reflected in Net Income | 4 | |
Sales/ Purchases/Other | 13 | |
Carrying value, end of period | 698 | |
Non Current Other Assets | $ 698 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities at Fair Value (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 30, 2018 |
Financial assets and liabilities at fair value | ||
Derivatives designated as hedging instruments : Assets | $ 663 | |
Derivatives designated as hedging instruments : Liabilities | 866 | |
Available-for-sale Securities, Equity Securities | 830 | $ 511 |
Available-for-sale Securities | 4,673 | 9,734 |
Total Gross Assets | 696 | 694 |
Credit Support Agreement (CSA) | (592) | (423) |
Total Net Asset | 104 | 271 |
Total Gross Liabilities | 892 | 872 |
Credit Support Agreement (CSA) | (652) | (605) |
Total Net Liabilities | 240 | 267 |
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 | 830 | 511 |
Available-for-sale Securities | 0 | |
Significant other observable inputs Level 2 | ||
Financial assets and liabilities at fair value | ||
Derivatives designated as hedging instruments : Assets | 663 | 662 |
Derivatives designated as hedging instruments : Liabilities | 866 | 840 |
Available-for-sale Securities, Equity Securities | 0 | |
Available-for-sale Securities | 4,673 | |
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 | ||
Financial assets and liabilities at fair value | ||
Derivative, Notional Amount | 500 | 500 |
Derivatives designated as hedging instruments : Assets | 383 | |
Derivatives designated as hedging instruments : Liabilities | 295 | |
Derivative Assets, Noncurrent | 6 | |
Derivative Liabilities, Noncurrent - interest swap | 2 | 3 |
Interest Rate Contract | 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 | Significant other observable inputs Level 2 | ||
Financial assets and liabilities at fair value | ||
Derivatives designated as hedging instruments : Assets | 383 | 161 |
Derivatives designated as hedging instruments : Liabilities | 295 | 292 |
Interest Rate Contract | 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 | 44,000 | 41,100 |
Derivatives designated as hedging instruments : Assets | 280 | |
Derivatives designated as hedging instruments : Liabilities | 571 | |
Derivatives not designated as hedging instruments : Assets | 33 | |
Derivatives not designated as hedging instruments : Liabilities | 26 | |
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 | 280 | 501 |
Derivatives designated as hedging instruments : Liabilities | 571 | 548 |
Derivatives not designated as hedging instruments : Assets | 33 | 32 |
Derivatives not designated as hedging instruments : Liabilities | 26 | 32 |
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 | 11,300 | 7,300 |
Equity Securities | ||
Financial assets and liabilities at fair value | ||
Available-for-sale Securities, Equity Securities | $ 830 | $ 511 |
Fair Value Measurements - Cash,
Fair Value Measurements - Cash, Cash Equivalents and Marketable Securities (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 30, 2018 | Apr. 01, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Abstract] | ||||
Available-for-sale Securities - Estimated Fair Value | $ 4,673 | $ 9,734 | ||
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||||
Cash and Cash Equivalents | 14,734 | 18,107 | $ 14,639 | $ 17,824 |
Marketable securities | 602 | $ 1,580 | ||
Held-to-maturity Securities | ||||
Debt Securities, Held-to-maturity [Abstract] | ||||
Held-to-maturity Securities - Carrying Amount | 10,663 | |||
Held-to-maturity Securities - Estimated Fair Value | 10,663 | |||
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||||
Cash and Cash Equivalents | 10,563 | |||
Marketable securities | 100 | |||
Held-to-maturity Securities | Cash | ||||
Debt Securities, Held-to-maturity [Abstract] | ||||
Held-to-maturity Securities - Carrying Amount | 2,778 | |||
Held-to-maturity Securities - Estimated Fair Value | 2,778 | |||
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||||
Cash and Cash Equivalents | 2,778 | |||
Held-to-maturity Securities | Other sovereign securities(1) | ||||
Debt Securities, Held-to-maturity [Abstract] | ||||
Held-to-maturity Securities - Carrying Amount | 190 | |||
Held-to-maturity Securities - Estimated Fair Value | 190 | |||
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||||
Cash and Cash Equivalents | 190 | |||
Marketable securities | ||||
Held-to-maturity Securities | U.S. reverse repurchase agreements | ||||
Debt Securities, Held-to-maturity [Abstract] | ||||
Held-to-maturity Securities - Carrying Amount | 2,068 | |||
Held-to-maturity Securities - Estimated Fair Value | 2,068 | |||
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||||
Cash and Cash Equivalents | 2,068 | |||
Marketable securities | ||||
Held-to-maturity Securities | Other reverse repurchase agreements | ||||
Debt Securities, Held-to-maturity [Abstract] | ||||
Held-to-maturity Securities - Carrying Amount | 350 | |||
Held-to-maturity Securities - Estimated Fair Value | 350 | |||
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||||
Cash and Cash Equivalents | 350 | |||
Held-to-maturity Securities | Corporate debt securities(1) | ||||
Debt Securities, Held-to-maturity [Abstract] | ||||
Held-to-maturity Securities - Carrying Amount | 549 | |||
Held-to-maturity Securities - Estimated Fair Value | 549 | |||
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||||
Cash and Cash Equivalents | 449 | |||
Marketable securities | 100 | |||
Held-to-maturity Securities | Money market funds | ||||
Debt Securities, Held-to-maturity [Abstract] | ||||
Held-to-maturity Securities - Carrying Amount | 4,195 | |||
Held-to-maturity Securities - Estimated Fair Value | 4,195 | |||
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||||
Cash and Cash Equivalents | 4,195 | |||
Held-to-maturity Securities | Time deposits(1) | ||||
Debt Securities, Held-to-maturity [Abstract] | ||||
Held-to-maturity Securities - Carrying Amount | 533 | |||
Held-to-maturity Securities - Estimated Fair Value | 533 | |||
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||||
Cash and Cash Equivalents | 533 | |||
Available-for-sale Securities | ||||
Debt Securities, Available-for-sale [Abstract] | ||||
Available-for-sale Securities - Carrying Amount | 4,673 | |||
Available-for-sale Securities - Estimated Fair Value | 4,673 | |||
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||||
Cash and Cash Equivalents | 4,171 | |||
Marketable securities | 502 | |||
Available-for-sale Securities | Other sovereign securities(1) | ||||
Debt Securities, Available-for-sale [Abstract] | ||||
Available-for-sale Securities - Carrying Amount | 0 | |||
Available-for-sale Securities - Estimated Fair Value | 0 | |||
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||||
Cash and Cash Equivalents | 0 | |||
Marketable securities | 0 | |||
Available-for-sale Securities | Corporate debt securities(1) | ||||
Debt Securities, Available-for-sale [Abstract] | ||||
Available-for-sale Securities - Carrying Amount | 261 | |||
Available-for-sale Securities - Estimated Fair Value | 261 | |||
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||||
Cash and Cash Equivalents | 28 | |||
Marketable securities | 233 | |||
Available-for-sale Securities | US Treasury and Government [Member] | ||||
Debt Securities, Available-for-sale [Abstract] | ||||
Available-for-sale Securities - Carrying Amount | 4,412 | |||
Available-for-sale Securities - Estimated Fair Value | 4,412 | |||
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||||
Cash and Cash Equivalents | 4,143 | |||
Marketable securities | $ 269 |
Fair Value Measurements - Sch_4
Fair Value Measurements - Schedule of Available for Sale Securities Maturities (Details) $ in Millions | Mar. 31, 2019USD ($) |
Cost Basis | |
Due within one year | $ 4,613 |
Due after one year through five years | 60 |
Due after five years through ten years | 0 |
Total debt securities | 4,673 |
Fair Value | |
Due within one year | 4,613 |
Due after one year through five years | 60 |
Due after five years through ten years | 0 |
Total debt securities | $ 4,673 |
Fair Value Measurements - Fin_2
Fair Value Measurements - Financial Liabilities not Measured at Fair Value (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 30, 2018 |
Financial Liabilities | ||
Current Debt | $ 1,708 | $ 2,796 |
Non-Current Debt | ||
Non-Current Debt | 27,660 | $ 27,684 |
Carrying Amount | ||
Financial Liabilities | ||
Current Debt | 1,708 | |
Non-Current Debt | ||
Non-Current Debt | 27,660 | |
Estimated Fair Value | ||
Financial Liabilities | ||
Current Debt | 1,708 | |
Non-Current Debt | ||
Non-Current Debt | $ 29,176 | |
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 | $ 51 | |
3% Zero Coupon Convertible Subordinated Debentures due in 2020 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 98 | |
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 | $ 496 | |
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 | $ 553 | |
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 | $ 449 | |
3.55% Notes due 2021 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 460 | |
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 | $ 350 | |
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 | $ 999 | |
1.65% Notes due 2021 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 985 | |
0.250% Notes due 2022 (1B Euro 1.1222) | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 0.25% | |
0.250% Notes due 2022 (1B Euro 1.1222) | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 1,120 | |
0.250% Notes due 2022 (1B Euro 1.1222) | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 1,135 | |
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 | $ 997 | |
2.25% Notes due 2022 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 993 | |
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 | $ 298 | |
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 | $ 838 | |
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 | $ 492 | |
0.650% Notes due 2024 (750MM Euro 1.1222) | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 0.65% | |
0.650% Notes due 2024 (750MM Euro 1.1222) | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 838 | |
0.650% Notes due 2024 (750MM Euro 1.1222) | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 866 | |
5.50% Notes due 2024 (500 MM GBP 1.3114) | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 5.50% | |
5.50% Notes due 2024 (500 MM GBP 1.3114) | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 651 | |
5.50% Notes due 2024 (500 MM GBP 1.3114) | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 795 | |
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 | $ 748 | |
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 | $ 1,992 | |
2.45% Notes due 2026 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 1,947 | |
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 | $ 1,001 | |
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 | $ 1,485 | |
1.150% Notes due 2028 (750MM Euro 1.1222) | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 1.15% | |
1.150% Notes due 2028 (750MM Euro 1.1222) | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 834 | |
1.150% Notes due 2028 (750MM Euro 1.1222) | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 885 | |
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 | $ 297 | |
6.95% Notes due 2029 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 397 | |
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 | $ 587 | |
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 | $ 961 | |
1.650% Notes due 2035 (1.5B Euro 1.1222) | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 1.65% | |
1.650% Notes due 2035 (1.5B Euro 1.1222) | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 1,667 | |
1.650% Notes due 2035 (1.5B Euro 1.1222) | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 1,809 | |
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 | $ 996 | |
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 | $ 1,294 | |
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 | $ 1,510 | |
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 | $ 978 | |
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 | $ 908 | |
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 | $ 605 | |
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 | $ 351 | |
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 | $ 563 | |
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 | $ 1,972 | |
3.70% Notes due 2046 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 2,005 | |
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 | $ 1,017 | |
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 | 731 | |
Other | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | 39 | |
Other | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 39 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Billions | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Income Tax (Textuals) | ||
Worldwide effective income tax rate (as a percent) | 15.20% | 20.30% |
Effective Income Tax Rate Reconciliation,Other Reconciling Items, Percent | 4.00% | |
Unrecognized tax benefits | $ 3.4 |
Pensions and Other Benefit Pl_3
Pensions and Other Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Retirement Plans | ||
Components of net periodic benefit cost | ||
Service cost | $ 276 | $ 309 |
Interest cost | 275 | 252 |
Expected return on plan assets | (583) | (560) |
Amortization of prior service cost/(credit) | 1 | 1 |
Recognized actuarial losses | 144 | 215 |
Curtailments and settlements | (1) | (2) |
Net periodic benefit cost | 112 | 215 |
Other Benefit Plans | ||
Components of net periodic benefit cost | ||
Service cost | 68 | 67 |
Interest cost | 46 | 37 |
Expected return on plan assets | (2) | (2) |
Amortization of prior service cost/(credit) | (8) | (8) |
Recognized actuarial losses | 32 | 30 |
Curtailments and settlements | 0 | 0 |
Net periodic benefit cost | $ 136 | $ 124 |
Pensions and Other Benefit Pl_4
Pensions and Other Benefit Plans (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
U.S. | |
Defined Benefit Plan Disclosure [Line Items] | |
Contribution to pension plans | $ 21 |
International retirement plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Contribution to pension plans | $ 79 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning Balance | $ 59,752 | $ 60,160 |
Net change | (295) | 823 |
Ending Balance | 58,955 | 63,255 |
Accumulated Foreign Currency Adjustment Attributable to Parent | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning Balance | (8,869) | |
Net change | (258) | |
Ending Balance | (9,127) | |
Accumulated Net Investment Gain (Loss) Attributable to Parent | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning Balance | 0 | |
Net change | 0 | |
Ending Balance | 0 | |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning Balance | (6,158) | |
Net change | 169 | |
Ending Balance | (5,989) | |
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 | (195) | |
Net change | (206) | |
Ending Balance | (401) | |
AOCI Attributable to Parent | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning Balance | (15,222) | (13,199) |
Net change | (295) | 823 |
Ending Balance | $ (15,517) | $ (12,608) |
Earnings Per Share (Details)
Earnings Per Share (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Reconciliation of basic net earnings per share to diluted net earnings per share | ||
Basic net earnings per share | $ 1.41 | $ 1.63 |
Average shares outstanding — basic | 2,660,800,000 | 2,682,200,000 |
Potential shares exercisable under stock option plans | 136,700,000 | 139,500,000 |
Less: shares which could be repurchased under treasury stock method | (99,400,000) | (90,600,000) |
Convertible debt shares | 700,000 | 800,000 |
Average shares outstanding — diluted | 2,698,800,000 | 2,731,900,000 |
Diluted net earnings per share | $ 1.39 | $ 1.60 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 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 | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Sales by segment of business | ||
Sales to customers | $ 20,021 | $ 20,009 |
Percent Change (as a percent) | 0.10% | |
U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 10,129 | 9,951 |
Percent Change (as a percent) | 1.80% | |
International | ||
Sales by segment of business | ||
Sales to customers | $ 9,892 | 10,058 |
Percent Change (as a percent) | (1.70%) | |
CONSUMER | ||
Sales by segment of business | ||
Sales to customers | $ 3,318 | 3,398 |
Percent Change (as a percent) | (2.40%) | |
CONSUMER | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 1,438 | 1,436 |
Percent Change (as a percent) | 0.20% | |
CONSUMER | International | ||
Sales by segment of business | ||
Sales to customers | $ 1,880 | 1,962 |
Percent Change (as a percent) | (4.20%) | |
CONSUMER | Baby Care | ||
Sales by segment of business | ||
Sales to customers | $ 394 | 457 |
Percent Change (as a percent) | (14.00%) | |
CONSUMER | Baby Care | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 87 | 97 |
Percent Change (as a percent) | (10.90%) | |
CONSUMER | Baby Care | International | ||
Sales by segment of business | ||
Sales to customers | $ 307 | 360 |
Percent Change (as a percent) | (14.80%) | |
CONSUMER | Beauty | ||
Sales by segment of business | ||
Sales to customers | $ 1,090 | 1,084 |
Percent Change (as a percent) | 0.60% | |
CONSUMER | Beauty | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 588 | 611 |
Percent Change (as a percent) | (3.80%) | |
CONSUMER | Beauty | International | ||
Sales by segment of business | ||
Sales to customers | $ 502 | 473 |
Percent Change (as a percent) | 6.20% | |
CONSUMER | Oral Care | ||
Sales by segment of business | ||
Sales to customers | $ 367 | 379 |
Percent Change (as a percent) | (3.10%) | |
CONSUMER | Oral Care | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 151 | 157 |
Percent Change (as a percent) | (3.50%) | |
CONSUMER | Oral Care | International | ||
Sales by segment of business | ||
Sales to customers | $ 216 | 222 |
Percent Change (as a percent) | (2.80%) | |
CONSUMER | OTC | ||
Sales by segment of business | ||
Sales to customers | $ 1,087 | 1,072 |
Percent Change (as a percent) | 1.30% | |
CONSUMER | OTC | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 507 | 465 |
Percent Change (as a percent) | 9.10% | |
CONSUMER | OTC | International | ||
Sales by segment of business | ||
Sales to customers | $ 580 | 607 |
Percent Change (as a percent) | (4.60%) | |
CONSUMER | Women's Health | ||
Sales by segment of business | ||
Sales to customers | $ 225 | 243 |
Percent Change (as a percent) | (7.30%) | |
CONSUMER | Women's Health | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 3 | 3 |
Percent Change (as a percent) | 4.20% | |
CONSUMER | Women's Health | International | ||
Sales by segment of business | ||
Sales to customers | $ 222 | 240 |
Percent Change (as a percent) | (7.50%) | |
CONSUMER | Wound Care/Other | ||
Sales by segment of business | ||
Sales to customers | $ 155 | 163 |
Percent Change (as a percent) | (4.80%) | |
CONSUMER | Wound Care/Other | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 102 | 103 |
Percent Change (as a percent) | (0.90%) | |
CONSUMER | Wound Care/Other | International | ||
Sales by segment of business | ||
Sales to customers | $ 53 | 60 |
Percent Change (as a percent) | (11.60%) | |
PHARMACEUTICAL | ||
Sales by segment of business | ||
Sales to customers | $ 10,244 | 9,844 |
Percent Change (as a percent) | 4.10% | |
PHARMACEUTICAL | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 5,582 | 5,354 |
Percent Change (as a percent) | 4.30% | |
PHARMACEUTICAL | International | ||
Sales by segment of business | ||
Sales to customers | $ 4,662 | 4,490 |
Percent Change (as a percent) | 3.90% | |
PHARMACEUTICAL | Immunology | ||
Sales by segment of business | ||
Sales to customers | $ 3,251 | 3,042 |
Percent Change (as a percent) | 6.90% | |
PHARMACEUTICAL | Immunology | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 2,163 | 2,000 |
Percent Change (as a percent) | 8.10% | |
PHARMACEUTICAL | Immunology | International | ||
Sales by segment of business | ||
Sales to customers | $ 1,088 | 1,042 |
Percent Change (as a percent) | 4.50% | |
PHARMACEUTICAL | Immunology | REMICADE® | ||
Sales by segment of business | ||
Sales to customers | $ 1,102 | 1,389 |
Percent Change (as a percent) | (20.60%) | |
PHARMACEUTICAL | Immunology | REMICADE® | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 774 | 916 |
Percent Change (as a percent) | (15.50%) | |
PHARMACEUTICAL | Immunology | REMICADE® | U.S. Exports | ||
Sales by segment of business | ||
Sales to customers | $ 76 | 142 |
Percent Change (as a percent) | (46.40%) | |
PHARMACEUTICAL | Immunology | REMICADE® | International | ||
Sales by segment of business | ||
Sales to customers | $ 252 | 331 |
Percent Change (as a percent) | (23.60%) | |
PHARMACEUTICAL | Immunology | SIMPONI / SIMPONI ARIA® | ||
Sales by segment of business | ||
Sales to customers | $ 524 | 518 |
Percent Change (as a percent) | 1.00% | |
PHARMACEUTICAL | Immunology | SIMPONI / SIMPONI ARIA® | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 263 | 224 |
Percent Change (as a percent) | 17.00% | |
PHARMACEUTICAL | Immunology | SIMPONI / SIMPONI ARIA® | International | ||
Sales by segment of business | ||
Sales to customers | $ 261 | 294 |
Percent Change (as a percent) | (11.10%) | |
PHARMACEUTICAL | Immunology | STELARA® | ||
Sales by segment of business | ||
Sales to customers | $ 1,405 | 1,061 |
Percent Change (as a percent) | 32.40% | |
PHARMACEUTICAL | Immunology | STELARA® | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 882 | 652 |
Percent Change (as a percent) | 35.20% | |
PHARMACEUTICAL | Immunology | STELARA® | International | ||
Sales by segment of business | ||
Sales to customers | $ 523 | 409 |
Percent Change (as a percent) | 27.90% | |
PHARMACEUTICAL | Immunology | TREMFYA® | ||
Sales by segment of business | ||
Sales to customers | $ 217 | 72 |
PHARMACEUTICAL | Immunology | TREMFYA® | U.S. | ||
Sales by segment of business | ||
Sales to customers | 168 | 66 |
PHARMACEUTICAL | Immunology | TREMFYA® | International | ||
Sales by segment of business | ||
Sales to customers | 49 | 6 |
PHARMACEUTICAL | Immunology | OTHER IMMUNOLOGY | ||
Sales by segment of business | ||
Sales to customers | $ 3 | 2 |
Percent Change (as a percent) | 19.50% | |
PHARMACEUTICAL | Immunology | OTHER IMMUNOLOGY | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 0 | 0 |
Percent Change (as a percent) | 0.00% | |
PHARMACEUTICAL | Immunology | OTHER IMMUNOLOGY | International | ||
Sales by segment of business | ||
Sales to customers | $ 3 | 2 |
Percent Change (as a percent) | 19.50% | |
PHARMACEUTICAL | Infectious Diseases | ||
Sales by segment of business | ||
Sales to customers | $ 846 | 830 |
Percent Change (as a percent) | 1.90% | |
PHARMACEUTICAL | Infectious Diseases | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 357 | 333 |
Percent Change (as a percent) | 7.30% | |
PHARMACEUTICAL | Infectious Diseases | International | ||
Sales by segment of business | ||
Sales to customers | $ 489 | 497 |
Percent Change (as a percent) | (1.70%) | |
PHARMACEUTICAL | Infectious Diseases | EDURANT® / rilpivirine | ||
Sales by segment of business | ||
Sales to customers | $ 211 | 210 |
Percent Change (as a percent) | 0.80% | |
PHARMACEUTICAL | Infectious Diseases | EDURANT® / rilpivirine | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 12 | 14 |
Percent Change (as a percent) | (18.80%) | |
PHARMACEUTICAL | Infectious Diseases | EDURANT® / rilpivirine | International | ||
Sales by segment of business | ||
Sales to customers | $ 199 | 196 |
Percent Change (as a percent) | 2.20% | |
PHARMACEUTICAL | Infectious Diseases | PREZISTA® / PREZCOBIX® / REZOLSTA® / SYMTUZA® | ||
Sales by segment of business | ||
Sales to customers | $ 523 | 478 |
Percent Change (as a percent) | 9.50% | |
PHARMACEUTICAL | Infectious Diseases | PREZISTA® / PREZCOBIX® / REZOLSTA® / SYMTUZA® | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 315 | 273 |
Percent Change (as a percent) | 15.50% | |
PHARMACEUTICAL | Infectious Diseases | PREZISTA® / PREZCOBIX® / REZOLSTA® / SYMTUZA® | International | ||
Sales by segment of business | ||
Sales to customers | $ 208 | 205 |
Percent Change (as a percent) | 1.50% | |
PHARMACEUTICAL | Infectious Diseases | OTHER INFECTIOUS DISEASES | ||
Sales by segment of business | ||
Sales to customers | $ 112 | 142 |
Percent Change (as a percent) | (21.70%) | |
PHARMACEUTICAL | Infectious Diseases | OTHER INFECTIOUS DISEASES | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 30 | 46 |
Percent Change (as a percent) | (33.80%) | |
PHARMACEUTICAL | Infectious Diseases | OTHER INFECTIOUS DISEASES | International | ||
Sales by segment of business | ||
Sales to customers | $ 82 | 96 |
Percent Change (as a percent) | (16.00%) | |
PHARMACEUTICAL | Neuroscience | ||
Sales by segment of business | ||
Sales to customers | $ 1,629 | 1,559 |
Percent Change (as a percent) | 4.50% | |
PHARMACEUTICAL | Neuroscience | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 723 | 624 |
Percent Change (as a percent) | 16.00% | |
PHARMACEUTICAL | Neuroscience | International | ||
Sales by segment of business | ||
Sales to customers | $ 905 | 935 |
Percent Change (as a percent) | (3.20%) | |
PHARMACEUTICAL | Neuroscience | CONCERTA® / Methylphenidate | ||
Sales by segment of business | ||
Sales to customers | $ 214 | 173 |
Percent Change (as a percent) | 23.40% | |
PHARMACEUTICAL | Neuroscience | CONCERTA® / Methylphenidate | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 97 | 66 |
Percent Change (as a percent) | 47.70% | |
PHARMACEUTICAL | Neuroscience | CONCERTA® / Methylphenidate | International | ||
Sales by segment of business | ||
Sales to customers | $ 116 | 107 |
Percent Change (as a percent) | 8.50% | |
PHARMACEUTICAL | Neuroscience | INVEGA SUSTENNA® / XEPLION® / INVEGA TRINZA® / TREVICTA® | ||
Sales by segment of business | ||
Sales to customers | $ 790 | 696 |
Percent Change (as a percent) | 13.50% | |
PHARMACEUTICAL | Neuroscience | INVEGA SUSTENNA® / XEPLION® / INVEGA TRINZA® / TREVICTA® | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 483 | 400 |
Percent Change (as a percent) | 20.70% | |
PHARMACEUTICAL | Neuroscience | INVEGA SUSTENNA® / XEPLION® / INVEGA TRINZA® / TREVICTA® | International | ||
Sales by segment of business | ||
Sales to customers | $ 307 | 296 |
Percent Change (as a percent) | 3.80% | |
PHARMACEUTICAL | Neuroscience | RISPERDAL CONSTA® | ||
Sales by segment of business | ||
Sales to customers | $ 179 | 196 |
Percent Change (as a percent) | (8.80%) | |
PHARMACEUTICAL | Neuroscience | RISPERDAL CONSTA® | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 77 | 82 |
Percent Change (as a percent) | (6.80%) | |
PHARMACEUTICAL | Neuroscience | RISPERDAL CONSTA® | International | ||
Sales by segment of business | ||
Sales to customers | $ 102 | 114 |
Percent Change (as a percent) | (10.30%) | |
PHARMACEUTICAL | Neuroscience | OTHER NEUROSCIENCE | ||
Sales by segment of business | ||
Sales to customers | $ 446 | 494 |
Percent Change (as a percent) | (9.60%) | |
PHARMACEUTICAL | Neuroscience | OTHER NEUROSCIENCE | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 66 | 76 |
Percent Change (as a percent) | (12.00%) | |
PHARMACEUTICAL | Neuroscience | OTHER NEUROSCIENCE | International | ||
Sales by segment of business | ||
Sales to customers | $ 379 | 418 |
Percent Change (as a percent) | (9.20%) | |
PHARMACEUTICAL | Oncology | ||
Sales by segment of business | ||
Sales to customers | $ 2,518 | 2,311 |
Percent Change (as a percent) | 9.00% | |
PHARMACEUTICAL | Oncology | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 962 | 933 |
Percent Change (as a percent) | 3.10% | |
PHARMACEUTICAL | Oncology | International | ||
Sales by segment of business | ||
Sales to customers | $ 1,556 | 1,378 |
Percent Change (as a percent) | 13.00% | |
PHARMACEUTICAL | Oncology | DARZALEX® | ||
Sales by segment of business | ||
Sales to customers | $ 629 | 432 |
Percent Change (as a percent) | 45.50% | |
PHARMACEUTICAL | Oncology | DARZALEX® | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 352 | 264 |
Percent Change (as a percent) | 33.00% | |
PHARMACEUTICAL | Oncology | DARZALEX® | International | ||
Sales by segment of business | ||
Sales to customers | $ 277 | 168 |
Percent Change (as a percent) | 65.10% | |
PHARMACEUTICAL | Oncology | IMBRUVICA® | ||
Sales by segment of business | ||
Sales to customers | $ 784 | 587 |
Percent Change (as a percent) | 33.50% | |
PHARMACEUTICAL | Oncology | IMBRUVICA® | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 349 | 227 |
Percent Change (as a percent) | 53.70% | |
PHARMACEUTICAL | Oncology | IMBRUVICA® | International | ||
Sales by segment of business | ||
Sales to customers | $ 435 | 360 |
Percent Change (as a percent) | 20.80% | |
PHARMACEUTICAL | Oncology | VELCADE® | ||
Sales by segment of business | ||
Sales to customers | $ 263 | 313 |
Percent Change (as a percent) | (16.00%) | |
PHARMACEUTICAL | Oncology | VELCADE® | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 0 | 0 |
Percent Change (as a percent) | 0.00% | |
PHARMACEUTICAL | Oncology | VELCADE® | International | ||
Sales by segment of business | ||
Sales to customers | $ 263 | 313 |
Percent Change (as a percent) | (16.00%) | |
PHARMACEUTICAL | Oncology | ZYTIGA® / abiraterone acetate | ||
Sales by segment of business | ||
Sales to customers | $ 679 | 845 |
Percent Change (as a percent) | (19.60%) | |
PHARMACEUTICAL | Oncology | ZYTIGA® / abiraterone acetate | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 185 | 407 |
Percent Change (as a percent) | (54.50%) | |
PHARMACEUTICAL | Oncology | ZYTIGA® / abiraterone acetate | International | ||
Sales by segment of business | ||
Sales to customers | $ 494 | 438 |
Percent Change (as a percent) | 12.90% | |
PHARMACEUTICAL | Oncology | OTHER ONCOLOGY | ||
Sales by segment of business | ||
Sales to customers | $ 163 | 134 |
Percent Change (as a percent) | 21.70% | |
PHARMACEUTICAL | Oncology | OTHER ONCOLOGY | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 76 | 35 |
PHARMACEUTICAL | Oncology | OTHER ONCOLOGY | International | ||
Sales by segment of business | ||
Sales to customers | $ 87 | 99 |
Percent Change (as a percent) | (12.20%) | |
PHARMACEUTICAL | Pulmonary Hypertension | ||
Sales by segment of business | ||
Sales to customers | $ 656 | 585 |
Percent Change (as a percent) | 12.10% | |
PHARMACEUTICAL | Pulmonary Hypertension | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 430 | 361 |
Percent Change (as a percent) | 19.20% | |
PHARMACEUTICAL | Pulmonary Hypertension | International | ||
Sales by segment of business | ||
Sales to customers | $ 226 | 224 |
Percent Change (as a percent) | 0.70% | |
PHARMACEUTICAL | Pulmonary Hypertension | OPSUMIT® | ||
Sales by segment of business | ||
Sales to customers | $ 306 | 271 |
Percent Change (as a percent) | 12.70% | |
PHARMACEUTICAL | Pulmonary Hypertension | OPSUMIT® | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 172 | 149 |
Percent Change (as a percent) | 15.90% | |
PHARMACEUTICAL | Pulmonary Hypertension | OPSUMIT® | International | ||
Sales by segment of business | ||
Sales to customers | $ 133 | 122 |
Percent Change (as a percent) | 8.90% | |
PHARMACEUTICAL | Pulmonary Hypertension | TRACLEER® | ||
Sales by segment of business | ||
Sales to customers | $ 117 | 140 |
Percent Change (as a percent) | (16.70%) | |
PHARMACEUTICAL | Pulmonary Hypertension | TRACLEER® | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 61 | 68 |
Percent Change (as a percent) | (10.10%) | |
PHARMACEUTICAL | Pulmonary Hypertension | TRACLEER® | International | ||
Sales by segment of business | ||
Sales to customers | $ 56 | 72 |
Percent Change (as a percent) | (22.90%) | |
PHARMACEUTICAL | Pulmonary Hypertension | UPTRAVI® | ||
Sales by segment of business | ||
Sales to customers | $ 198 | 140 |
Percent Change (as a percent) | 41.60% | |
PHARMACEUTICAL | Pulmonary Hypertension | UPTRAVI® | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 176 | 124 |
Percent Change (as a percent) | 41.40% | |
PHARMACEUTICAL | Pulmonary Hypertension | UPTRAVI® | International | ||
Sales by segment of business | ||
Sales to customers | $ 22 | 16 |
Percent Change (as a percent) | 42.80% | |
PHARMACEUTICAL | Pulmonary Hypertension | OTHER | ||
Sales by segment of business | ||
Sales to customers | $ 35 | 34 |
Percent Change (as a percent) | 4.00% | |
PHARMACEUTICAL | Pulmonary Hypertension | OTHER | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 21 | 20 |
Percent Change (as a percent) | 3.60% | |
PHARMACEUTICAL | Pulmonary Hypertension | OTHER | International | ||
Sales by segment of business | ||
Sales to customers | $ 15 | 14 |
Percent Change (as a percent) | 4.60% | |
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | ||
Sales by segment of business | ||
Sales to customers | $ 1,345 | 1,517 |
Percent Change (as a percent) | (11.30%) | |
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 947 | 1,103 |
Percent Change (as a percent) | (14.10%) | |
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | International | ||
Sales by segment of business | ||
Sales to customers | $ 398 | 414 |
Percent Change (as a percent) | (3.90%) | |
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | XARELTO® | ||
Sales by segment of business | ||
Sales to customers | $ 542 | 578 |
Percent Change (as a percent) | (6.30%) | |
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | XARELTO® | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 542 | 578 |
Percent Change (as a percent) | (6.30%) | |
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | XARELTO® | International | ||
Sales by segment of business | ||
Sales to customers | $ 0 | 0 |
Percent Change (as a percent) | 0.00% | |
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | INVOKANA® / INVOKAMET® | ||
Sales by segment of business | ||
Sales to customers | $ 202 | 248 |
Percent Change (as a percent) | (18.40%) | |
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | INVOKANA® / INVOKAMET® | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 154 | 204 |
Percent Change (as a percent) | (24.80%) | |
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | INVOKANA® / INVOKAMET® | International | ||
Sales by segment of business | ||
Sales to customers | $ 49 | 44 |
Percent Change (as a percent) | 11.60% | |
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | PROCRIT® / EPREX® | ||
Sales by segment of business | ||
Sales to customers | $ 226 | 276 |
Percent Change (as a percent) | (18.00%) | |
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | PROCRIT® / EPREX® | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 148 | 189 |
Percent Change (as a percent) | (21.60%) | |
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | PROCRIT® / EPREX® | International | ||
Sales by segment of business | ||
Sales to customers | $ 78 | 87 |
Percent Change (as a percent) | (10.20%) | |
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | OTHER | ||
Sales by segment of business | ||
Sales to customers | $ 374 | 415 |
Percent Change (as a percent) | (9.70%) | |
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | OTHER | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 104 | 132 |
Percent Change (as a percent) | (21.30%) | |
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | OTHER | International | ||
Sales by segment of business | ||
Sales to customers | $ 271 | 283 |
Percent Change (as a percent) | (4.40%) | |
MEDICAL DEVICES | ||
Sales by segment of business | ||
Sales to customers | $ 6,459 | 6,767 |
Percent Change (as a percent) | (4.60%) | |
MEDICAL DEVICES | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 3,109 | 3,161 |
Percent Change (as a percent) | (1.60%) | |
MEDICAL DEVICES | International | ||
Sales by segment of business | ||
Sales to customers | $ 3,350 | 3,606 |
Percent Change (as a percent) | (7.10%) | |
MEDICAL DEVICES | Diabetes Care | ||
Sales by segment of business | ||
Sales to customers | $ 0 | 339 |
MEDICAL DEVICES | Diabetes Care | U.S. | ||
Sales by segment of business | ||
Sales to customers | 0 | 117 |
MEDICAL DEVICES | Diabetes Care | International | ||
Sales by segment of business | ||
Sales to customers | 0 | 222 |
MEDICAL DEVICES | Interventional Solutions | ||
Sales by segment of business | ||
Sales to customers | $ 732 | 640 |
Percent Change (as a percent) | 14.30% | |
MEDICAL DEVICES | Interventional Solutions | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 343 | 304 |
Percent Change (as a percent) | 12.60% | |
MEDICAL DEVICES | Interventional Solutions | International | ||
Sales by segment of business | ||
Sales to customers | $ 389 | 336 |
Percent Change (as a percent) | 15.80% | |
MEDICAL DEVICES | Orthopaedics | ||
Sales by segment of business | ||
Sales to customers | $ 2,204 | 2,250 |
Percent Change (as a percent) | (2.10%) | |
MEDICAL DEVICES | Orthopaedics | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 1,318 | 1,307 |
Percent Change (as a percent) | 0.90% | |
MEDICAL DEVICES | Orthopaedics | International | ||
Sales by segment of business | ||
Sales to customers | $ 885 | 943 |
Percent Change (as a percent) | (6.20%) | |
MEDICAL DEVICES | Orthopaedics | HIPS | ||
Sales by segment of business | ||
Sales to customers | $ 361 | 363 |
Percent Change (as a percent) | (0.40%) | |
MEDICAL DEVICES | Orthopaedics | HIPS | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 213 | 209 |
Percent Change (as a percent) | 2.10% | |
MEDICAL DEVICES | Orthopaedics | HIPS | International | ||
Sales by segment of business | ||
Sales to customers | $ 148 | 154 |
Percent Change (as a percent) | (3.80%) | |
MEDICAL DEVICES | Orthopaedics | KNEES | ||
Sales by segment of business | ||
Sales to customers | $ 369 | 387 |
Percent Change (as a percent) | (4.70%) | |
MEDICAL DEVICES | Orthopaedics | KNEES | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 223 | 228 |
Percent Change (as a percent) | (2.20%) | |
MEDICAL DEVICES | Orthopaedics | KNEES | International | ||
Sales by segment of business | ||
Sales to customers | $ 146 | 159 |
Percent Change (as a percent) | (8.20%) | |
MEDICAL DEVICES | Orthopaedics | TRAUMA | ||
Sales by segment of business | ||
Sales to customers | $ 685 | 696 |
Percent Change (as a percent) | (1.40%) | |
MEDICAL DEVICES | Orthopaedics | TRAUMA | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 417 | 407 |
Percent Change (as a percent) | 2.50% | |
MEDICAL DEVICES | Orthopaedics | TRAUMA | International | ||
Sales by segment of business | ||
Sales to customers | $ 268 | 289 |
Percent Change (as a percent) | (7.00%) | |
MEDICAL DEVICES | Orthopaedics | SPINE & OTHER | ||
Sales by segment of business | ||
Sales to customers | $ 788 | 804 |
Percent Change (as a percent) | (2.20%) | |
MEDICAL DEVICES | Orthopaedics | SPINE & OTHER | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 465 | 463 |
Percent Change (as a percent) | 0.30% | |
MEDICAL DEVICES | Orthopaedics | SPINE & OTHER | International | ||
Sales by segment of business | ||
Sales to customers | $ 323 | 341 |
Percent Change (as a percent) | (5.50%) | |
MEDICAL DEVICES | Surgery | ||
Sales by segment of business | ||
Sales to customers | $ 2,395 | 2,423 |
Percent Change (as a percent) | (1.20%) | |
MEDICAL DEVICES | Surgery | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 1,001 | 993 |
Percent Change (as a percent) | 0.80% | |
MEDICAL DEVICES | Surgery | International | ||
Sales by segment of business | ||
Sales to customers | $ 1,394 | 1,430 |
Percent Change (as a percent) | (2.60%) | |
MEDICAL DEVICES | Surgery | ADVANCED | ||
Sales by segment of business | ||
Sales to customers | $ 980 | 966 |
Percent Change (as a percent) | 1.50% | |
MEDICAL DEVICES | Surgery | ADVANCED | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 404 | 393 |
Percent Change (as a percent) | 2.90% | |
MEDICAL DEVICES | Surgery | ADVANCED | International | ||
Sales by segment of business | ||
Sales to customers | $ 576 | 573 |
Percent Change (as a percent) | 0.50% | |
MEDICAL DEVICES | Surgery | GENERAL | ||
Sales by segment of business | ||
Sales to customers | $ 1,089 | 1,127 |
Percent Change (as a percent) | (3.40%) | |
MEDICAL DEVICES | Surgery | GENERAL | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 425 | 423 |
Percent Change (as a percent) | 0.30% | |
MEDICAL DEVICES | Surgery | GENERAL | International | ||
Sales by segment of business | ||
Sales to customers | $ 665 | 704 |
Percent Change (as a percent) | (5.60%) | |
MEDICAL DEVICES | Surgery | SPECIALTY | ||
Sales by segment of business | ||
Sales to customers | $ 325 | 330 |
Percent Change (as a percent) | (1.40%) | |
MEDICAL DEVICES | Surgery | SPECIALTY | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 172 | 177 |
Percent Change (as a percent) | (2.50%) | |
MEDICAL DEVICES | Surgery | SPECIALTY | International | ||
Sales by segment of business | ||
Sales to customers | $ 153 | 153 |
Percent Change (as a percent) | (0.20%) | |
MEDICAL DEVICES | Vision | ||
Sales by segment of business | ||
Sales to customers | $ 1,129 | 1,115 |
Percent Change (as a percent) | 1.20% | |
MEDICAL DEVICES | Vision | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 446 | 440 |
Percent Change (as a percent) | 1.50% | |
MEDICAL DEVICES | Vision | International | ||
Sales by segment of business | ||
Sales to customers | $ 682 | 675 |
Percent Change (as a percent) | 1.10% | |
MEDICAL DEVICES | Vision | CONTACT LENSES / OTHER | ||
Sales by segment of business | ||
Sales to customers | $ 824 | 807 |
Percent Change (as a percent) | 2.10% | |
MEDICAL DEVICES | Vision | CONTACT LENSES / OTHER | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 321 | 309 |
Percent Change (as a percent) | 4.10% | |
MEDICAL DEVICES | Vision | CONTACT LENSES / OTHER | International | ||
Sales by segment of business | ||
Sales to customers | $ 502 | 498 |
Percent Change (as a percent) | 1.00% | |
MEDICAL DEVICES | Vision | SURGICAL | ||
Sales by segment of business | ||
Sales to customers | $ 305 | 308 |
Percent Change (as a percent) | (1.10%) | |
MEDICAL DEVICES | Vision | SURGICAL | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 125 | 131 |
Percent Change (as a percent) | (4.50%) | |
MEDICAL DEVICES | Vision | SURGICAL | International | ||
Sales by segment of business | ||
Sales to customers | $ 180 | $ 177 |
Percent Change (as a percent) | 1.30% |
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 | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Segment Reporting Information [Line Items] | ||
Percentage Change In Sales By Geographic Area | 0.10% | |
Sales to customers (Note 9) | $ 20,021 | $ 20,009 |
Percentage Change in Operating Income Loss | (19.30%) | |
Earnings before provision for taxes on income | $ 4,422 | 5,481 |
In-process research and development | 890 | 0 |
Restructuring charges | 36 | 42 |
Unrealized Gain (Loss) on Securities | 100 | |
CONSUMER | ||
Segment Reporting Information [Line Items] | ||
Sales to customers (Note 9) | 3,318 | 3,398 |
PHARMACEUTICAL | ||
Segment Reporting Information [Line Items] | ||
Sales to customers (Note 9) | 10,244 | 9,844 |
Litigation expense | 300 | |
Research and Development Expense | 300 | |
Medical Devices | ||
Segment Reporting Information [Line Items] | ||
Sales to customers (Note 9) | 6,459 | 6,767 |
Restructuring charges | 100 | 100 |
Litigation expense | 100 | |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total Segment Operating Income | $ 4,569 | 5,793 |
Percentage Change in Operating Income Loss | (21.10%) | |
Operating Segments | CONSUMER | ||
Segment Reporting Information [Line Items] | ||
Total Segment Operating Income | $ 741 | 548 |
Percentage Change in Operating Income Loss | 35.20% | |
Amortization | $ 100 | 100 |
Operating Segments | PHARMACEUTICAL | ||
Segment Reporting Information [Line Items] | ||
Total Segment Operating Income | $ 2,331 | 3,666 |
Percentage Change in Operating Income Loss | (36.40%) | |
Amortization | $ 800 | 800 |
Operating Segments | Medical Devices | ||
Segment Reporting Information [Line Items] | ||
Total Segment Operating Income | $ 1,497 | 1,579 |
Percentage Change in Operating Income Loss | (5.20%) | |
Amortization | $ 200 | 300 |
Corporate, Non-Segment | ||
Segment Reporting Information [Line Items] | ||
Total Segment Operating Income | 147 | 312 |
Ci:z Holdings Co. Ltd. | ||
Segment Reporting Information [Line Items] | ||
Gain on sale of equity investments | $ 300 | |
Actelion | PHARMACEUTICAL | ||
Segment Reporting Information [Line Items] | ||
Acquisition related costs | 100 | |
United States | ||
Segment Reporting Information [Line Items] | ||
Percentage Change In Sales By Geographic Area | 1.80% | |
Sales to customers (Note 9) | $ 10,129 | 9,951 |
United States | CONSUMER | ||
Segment Reporting Information [Line Items] | ||
Sales to customers (Note 9) | 1,438 | 1,436 |
United States | PHARMACEUTICAL | ||
Segment Reporting Information [Line Items] | ||
Sales to customers (Note 9) | 5,582 | 5,354 |
United States | Medical Devices | ||
Segment Reporting Information [Line Items] | ||
Sales to customers (Note 9) | $ 3,109 | 3,161 |
Europe | ||
Segment Reporting Information [Line Items] | ||
Percentage Change In Sales By Geographic Area | (3.90%) | |
Sales to customers (Note 9) | $ 4,609 | 4,797 |
Western Hemisphere, excluding U.S. | ||
Segment Reporting Information [Line Items] | ||
Percentage Change In Sales By Geographic Area | (4.10%) | |
Sales to customers (Note 9) | $ 1,503 | 1,567 |
Asia-Pacific, Africa | ||
Segment Reporting Information [Line Items] | ||
Percentage Change In Sales By Geographic Area | 2.30% | |
Sales to customers (Note 9) | $ 3,780 | $ 3,694 |
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 | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Sales by geographic area | ||
Sales | $ 20,021 | $ 20,009 |
Percentage Change In Sales By Geographic Area | 0.10% | |
United States | ||
Sales by geographic area | ||
Sales | $ 10,129 | 9,951 |
Percentage Change In Sales By Geographic Area | 1.80% | |
Europe | ||
Sales by geographic area | ||
Sales | $ 4,609 | 4,797 |
Percentage Change In Sales By Geographic Area | (3.90%) | |
Western Hemisphere, excluding U.S. | ||
Sales by geographic area | ||
Sales | $ 1,503 | 1,567 |
Percentage Change In Sales By Geographic Area | (4.10%) | |
Asia-Pacific, Africa | ||
Sales by geographic area | ||
Sales | $ 3,780 | $ 3,694 |
Percentage Change In Sales By Geographic Area | 2.30% |
Business Combinations and Div_2
Business Combinations and Divestitures - Narrative (Details) ¥ / shares in Units, $ in Millions, ¥ in Billions | Oct. 23, 2018USD ($) | Oct. 23, 2018JPY (¥) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Apr. 01, 2018USD ($) | Apr. 01, 2019USD ($) | Jan. 17, 2019¥ / shares | Jan. 16, 2019 | Dec. 30, 2018USD ($) | Oct. 22, 2018 |
Business Acquisition [Line Items] | ||||||||||
Payments to acquire businesses | $ 1,683 | $ 82 | ||||||||
Other (income) expense, net | 22 | $ (60) | ||||||||
Goodwill | $ 31,450 | $ 30,453 | ||||||||
Weighted average useful life | 15 years 3 months 18 days | |||||||||
Ci:z Holdings Co. Ltd. | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Payments to acquire businesses | $ 1,600 | |||||||||
Business acquisition cost | $ 2,100 | ¥ 230 | ||||||||
Foreign exchange rate | 109.06 | |||||||||
Share price (in dollars per share) | ¥ / shares | ¥ 5,900 | |||||||||
Percentage of voting interests acquired | 89.00% | 89.00% | 69.00% | 20.00% | ||||||
Current liability, contingent consideration | $ 300 | |||||||||
Other (income) expense, net | 300 | |||||||||
Intangible assets | 1,600 | |||||||||
Goodwill | 1,200 | |||||||||
Current liabilities | 600 | |||||||||
Subsequent Event | Auris Health | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Payments to acquire businesses | $ 3,400 | |||||||||
Contingent consideration | $ 2,350 | |||||||||
Discontinued Operations, Held-for-sale or Disposed of by Sale | AdvancedSterilizationProducts | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Disposal group inventory | 200 | |||||||||
Disposal group property, plant and equipment | 100 | |||||||||
Disposal group goodwill | 300 | |||||||||
Assets held for sale, current | 200 | 200 | ||||||||
Discontinued Operations, Held-for-sale or Disposed of by Sale | AdvancedSterilizationProducts | Subsequent Event | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Disposal group consideration | 2,800 | |||||||||
Disposal group consideration, cash | 2,700 | |||||||||
Receivables retained | $ 100 | |||||||||
Discontinued Operations, Held-for-sale or Disposed of by Sale | Supply Chain | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Disposal group property, plant and equipment | 100 | |||||||||
Assets held for sale, current | $ 200 | $ 300 | ||||||||
Scenario, Forecast | Ci:z Holdings Co. Ltd. | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Percentage of voting interests acquired | 11.00% |
Legal Proceedings (Details)
Legal Proceedings (Details) $ in Billions | 3 Months Ended |
Mar. 31, 2019USD ($)patientclaimant | |
ASR | |
Legal Proceeding (Textuals) | |
Product Liability Contingency Number Of Claimants | 1,700 |
Pinnacle Acetabular Cup System | |
Legal Proceeding (Textuals) | |
Product Liability Contingency Number Of Claimants | 10,500 |
Pelvic Meshes | |
Legal Proceeding (Textuals) | |
Product Liability Contingency Number Of Claimants | 29,500 |
Risperdal | |
Legal Proceeding (Textuals) | |
Product Liability Contingency Number Of Claimants | 13,100 |
XARELTO® | |
Legal Proceeding (Textuals) | |
Product Liability Contingency Number Of Claimants | 27,300 |
Talc | |
Legal Proceeding (Textuals) | |
Product Liability Contingency Number Of Claimants | 14,200 |
Invokana | |
Legal Proceeding (Textuals) | |
Product Liability Contingency Number Of Claimants | 1,000 |
Physiomesh [Member] | |
Legal Proceeding (Textuals) | |
Product Liability Contingency Number Of Claimants | 2,500 |
Opiods | |
Legal Proceeding (Textuals) | |
Product Liability Contingency Number Of Claimants | 2,000 |
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) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 36 | $ 42 |
Supply Chain | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 90 | |
Restructuring charges recorded to date | 300 | |
Supply Chain | Cost of products sold | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 23 | |
Supply Chain | Other (income) expense | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 31 | |
Supply Chain | Minimum | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring estimated cost | 1,900 | |
Cost savings expected | 600 | |
Supply Chain | Maximum | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring estimated cost | 2,300 | |
Cost savings expected | 800 | |
Medical Devices | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 90 | |
Medical Devices | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 100 | $ 100 |
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 | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring charges | $ 36 | $ 42 |
Medical Devices | ||
Restructuring Reserve [Roll Forward] | ||
Reserve balance beginning | 242 | |
Restructuring charges | 90 | |
Payments for Restructuring | (109) | |
Restructuring Reserve, Settled without Cash | (23) | |
Reserve balance ending | 200 | |
Medical Devices | Employee Severance | ||
Restructuring Reserve [Roll Forward] | ||
Reserve balance beginning | 194 | |
Restructuring charges | 0 | |
Payments for Restructuring | (1) | |
Restructuring Reserve, Settled without Cash | 0 | |
Reserve balance ending | 193 | |
Medical Devices | Asset Write-off | ||
Restructuring Reserve [Roll Forward] | ||
Reserve balance beginning | 0 | |
Restructuring charges | 23 | |
Payments for Restructuring | 0 | |
Restructuring Reserve, Settled without Cash | (23) | |
Reserve balance ending | 0 | |
Medical Devices | Other Restructuring | ||
Restructuring Reserve [Roll Forward] | ||
Reserve balance beginning | 48 | |
Restructuring charges | 67 | |
Payments for Restructuring | (108) | |
Restructuring Reserve, Settled without Cash | 0 | |
Reserve balance ending | $ 7 |