Cover
Cover - shares | 3 Months Ended | |
Apr. 03, 2022 | Apr. 22, 2022 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Apr. 3, 2022 | |
Document Transition Report | false | |
Entity File Number | 1-3215 | |
Entity Registrant Name | Johnson & Johnson | |
Entity Incorporation, State or Country Code | NJ | |
Entity Tax Identification Number | 22-1024240 | |
Entity Address, Address Line One | One Johnson & Johnson Plaza | |
Entity Address, City or Town | New Brunswick | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 08933 | |
City Area Code | 732 | |
Local Phone Number | 524-0400 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 2,631,401,804 | |
Entity Central Index Key | 0000200406 | |
Current Fiscal Year End Date | --01-01 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Common Stock, Par Value $1.00 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock, Par Value $1.00 | |
Trading Symbol | JNJ | |
Security Exchange Name | NYSE | |
0.650% Notes Due May 2024 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 0.650% Notes Due May 2024 | |
Trading Symbol | JNJ24C | |
Security Exchange Name | NYSE | |
5.50% Notes Due November 2024 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 5.50% Notes Due November 2024 | |
Trading Symbol | JNJ24BP | |
Security Exchange Name | NYSE | |
1.150% Notes Due November 2028 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.150% Notes Due November 2028 | |
Trading Symbol | JNJ28 | |
Security Exchange Name | NYSE | |
1.650% Notes Due May 2035 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.650% Notes Due May 2035 | |
Trading Symbol | JNJ35 | |
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Apr. 03, 2022 | Jan. 02, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 10,463 | $ 14,487 |
Marketable securities | 19,925 | 17,121 |
Accounts receivable, trade, less allowances for doubtful accounts and credit losses $234 (2021, $230) | 15,594 | 15,283 |
Inventories (Note 2) | 10,990 | 10,387 |
Prepaid expenses and other | 3,452 | 3,701 |
Total current assets | 60,424 | 60,979 |
Property, plant and equipment at cost | 47,702 | 47,679 |
Less: accumulated depreciation | (29,001) | (28,717) |
Property, plant and equipment, net | 18,701 | 18,962 |
Intangible assets, net (Note 3) | 44,420 | 46,392 |
Goodwill (Note 3) | 34,935 | 35,246 |
Deferred taxes on income (Note 5) | 9,936 | 10,223 |
Other assets | 9,939 | 10,216 |
Total assets | 178,355 | 182,018 |
Current liabilities: | ||
Loans and notes payable | 4,297 | 3,766 |
Accounts payable | 9,309 | 11,055 |
Accrued liabilities | 13,006 | 13,612 |
Accrued rebates, returns and promotions | 12,972 | 12,095 |
Accrued compensation and employee related obligations | 2,098 | 3,586 |
Accrued taxes on income (Note 5) | 1,708 | 1,112 |
Total current liabilities | 43,390 | 45,226 |
Long-term debt (Note 4) | 28,851 | 29,985 |
Deferred taxes on income (Note 5) | 6,424 | 7,487 |
Employee related obligations (Note 6) | 8,739 | 8,898 |
Long-term taxes payable (Note 5) | 5,745 | 5,713 |
Other liabilities | 10,497 | 10,686 |
Total liabilities | 103,646 | 107,995 |
Commitments and Contingencies (Note 11) | ||
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) | (13,757) | (13,058) |
Retained earnings | 124,380 | 123,060 |
Less: common stock held in treasury, at cost (490,459,000 and 490,878,000 shares) | 39,034 | 39,099 |
Total shareholders’ equity | 74,709 | 74,023 |
Total liabilities and shareholders' equity | $ 178,355 | $ 182,018 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Apr. 03, 2022 | Jan. 02, 2022 |
Current assets: | ||
Allowances for doubtful accounts | $ 234 | $ 230 |
Shareholders' equity: | ||
Common stock, par value per share (per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 4,320,000,000 | 4,320,000,000 |
Common stock, shares issued (in shares) | 3,119,843,000 | 3,119,843,000 |
Treasury stock, shares (in shares) | 490,459,000 | 490,878,000 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Income Statement [Abstract] | ||
Sales to customers | $ 23,426 | $ 22,321 |
Sales to customers percent to sales | 100.00% | 100.00% |
Cost of products sold | $ 7,598 | $ 7,063 |
Cost of products sold percent to sales | 32.40% | 31.70% |
Gross profit | $ 15,828 | $ 15,258 |
Gross Profit Percent To Sales | 67.60% | 68.30% |
Selling, marketing and administrative expenses | $ 5,938 | $ 5,432 |
Selling marketing and administrative expenses percent to sales | 25.40% | 24.30% |
Research and development expense | $ 3,462 | $ 3,178 |
Research and development expense percent to sales | 14.80% | 14.20% |
In-process research and development | $ 610 | $ 0 |
In-process research and development percent to sales | 2.60% | 0.00% |
Interest income | $ (22) | $ (15) |
Interest income percent to sales | (0.10%) | (0.10%) |
Interest expense, net of portion capitalized | $ 10 | $ 63 |
Interest expense, net of portion capitalized percent to sales | 0.00% | 0.30% |
Other (income) expense, net | $ (102) | $ (882) |
Other (income) expense, net percent to sales | (0.40%) | (3.90%) |
Restructuring (Note 12) | $ 70 | $ 53 |
Restructuring charge percent to sales | 0.30% | 0.20% |
Earnings before provision for taxes on income | $ 5,862 | $ 7,429 |
Earnings before provision for taxes on income percent to sales | 25.00% | 33.30% |
Provision for taxes on income (Note 5) | $ 713 | $ 1,232 |
Provision for taxes on income percent to sales | 3.00% | 5.50% |
Net earnings | $ 5,149 | $ 6,197 |
Net earnings percent to sales | 22.00% | 27.80% |
NET EARNINGS PER SHARE | ||
Basic (per share) | $ 1.96 | $ 2.35 |
Diluted (per share) | $ 1.93 | $ 2.32 |
AVG. SHARES OUTSTANDING | ||
Basic (shares) | 2,629.2 | 2,631.6 |
Diluted (shares) | 2,666.5 | 2,672.7 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $ 5,149 | $ 6,197 |
Other comprehensive income (loss), net of tax | ||
Foreign currency translation | (554) | 276 |
Securities: | ||
Unrealized holding gain (loss) arising during period | (13) | 0 |
Reclassifications to earnings | 0 | 0 |
Net change | (13) | 0 |
Employee benefit plans: | ||
Prior service cost amortization during period | (53) | (41) |
Gain (loss) amortization during period | 217 | 274 |
Net change | 164 | 233 |
Derivatives & hedges: | ||
Unrealized gain (loss) arising during period | (195) | (522) |
Reclassifications to earnings | (101) | (73) |
Net change | (296) | (595) |
Other comprehensive income (loss) | (699) | (86) |
Comprehensive income | $ 4,450 | $ 6,111 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Foreign Currency Translation | $ (145) | $ (319) |
Securities | (3) | |
Employee Benefit Plans | 19 | (66) |
Derivatives & Hedges | $ (78) | $ (157) |
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 Jan. 03, 2021 | $ 63,278 | $ 113,890 | $ (15,242) | $ 3,120 | $ (38,490) |
Net earnings | 6,197 | 6,197 | |||
Cash dividends paid | (2,659) | (2,659) | |||
Employee compensation and stock option plans | 542 | (920) | 1,462 | ||
Repurchase of common stock | (1,438) | (1,438) | |||
Other comprehensive income (loss), net of tax | (86) | (86) | |||
Ending Balance at Apr. 04, 2021 | 65,834 | 116,508 | (15,328) | 3,120 | (38,466) |
Beginning Balance at Jan. 02, 2022 | 74,023 | 123,060 | (13,058) | 3,120 | (39,099) |
Net earnings | 5,149 | 5,149 | |||
Cash dividends paid | (2,787) | (2,787) | |||
Employee compensation and stock option plans | 600 | (1,042) | 1,642 | ||
Repurchase of common stock | (1,577) | (1,577) | |||
Other comprehensive income (loss), net of tax | (699) | (699) | |||
Ending Balance at Apr. 03, 2022 | $ 74,709 | $ 124,380 | $ (13,757) | $ 3,120 | $ (39,034) |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends paid (in dollars per share) | $ 1.06 | $ 1.01 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net earnings | $ 5,149 | $ 6,197 |
Adjustments to reconcile net earnings to cash flows from operating activities: | ||
Depreciation and amortization of property and intangibles | 1,769 | 1,894 |
Stock based compensation | 278 | 307 |
Asset write-downs | 610 | 14 |
Net gain on sale of assets/businesses | (168) | (580) |
Deferred tax provision | (926) | (730) |
Credit losses and accounts receivable allowances | 6 | (13) |
Changes in assets and liabilities, net of effects from acquisitions and divestitures: | ||
Increase in accounts receivable | (427) | (1,604) |
Increase in inventories | (600) | (695) |
Decrease in accounts payable and accrued liabilities | (2,817) | (2,336) |
Decrease in other current and non-current assets | 995 | 2,522 |
Increase/(Decrease) in other current and non-current liabilities | 110 | (902) |
NET CASH FLOWS FROM OPERATING ACTIVITIES | 3,979 | 4,074 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Additions to property, plant and equipment | (607) | (677) |
Proceeds from the disposal of assets/businesses, net (Note 10) | 248 | 603 |
Acquisitions, net of cash acquired (Note 10) | (252) | 0 |
Purchases of investments | (9,018) | (5,994) |
Sales of investments | 6,303 | 5,233 |
Credit support agreements activity, net | (249) | 751 |
Other (primarily licenses and milestones) | (59) | (101) |
NET CASH USED BY INVESTING ACTIVITIES | (3,634) | (185) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Dividends to shareholders | (2,787) | (2,659) |
Repurchase of common stock | (1,577) | (1,438) |
Proceeds from short-term debt | 3,019 | 23 |
Repayment of short-term debt | (856) | (475) |
Proceeds from long-term debt, net of issuance costs | 0 | 1 |
Repayment of long-term debt | (2,132) | (1,001) |
Proceeds from the exercise of stock options/employee withholding tax on stock awards, net | 321 | 236 |
Credit support agreements activity, net | (235) | 212 |
Other | (138) | (24) |
NET CASH USED BY FINANCING ACTIVITIES | (4,385) | (5,125) |
Effect of exchange rate changes on cash and cash equivalents | 16 | (78) |
Decrease in cash and cash equivalents | (4,024) | (1,314) |
Cash and Cash equivalents, beginning of period | 14,487 | 13,985 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 10,463 | 12,671 |
Acquisitions | ||
Fair value of assets acquired | 255 | 0 |
Fair value of liabilities assumed and noncontrolling interests | (3) | 0 |
Net cash paid for acquisitions | $ 252 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Apr. 03, 2022 | |
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 January 2, 2022. 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. Use of Estimates The extent to which COVID-19 impacts the Company’s business and financial results will depend on numerous evolving factors including, but not limited to: the magnitude and duration of COVID-19, the extent to which it will impact worldwide macroeconomic conditions including interest rates, inflation, employment rates and health insurance coverage, the speed of the anticipated recovery, and governmental and business reactions to the pandemic. The Company assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to the Company and the unknown future impacts COVID-19 as of April 3, 2022 and through the date of this report. The accounting matters assessed included, but were not limited to, the Company’s allowance for doubtful accounts and credit losses, inventory and related reserves, accrued rebates and associated reserves, and the carrying value of the goodwill and other long-lived assets along with the Company’s on-going vaccine development and distribution efforts. While there was not a material impact to the Company’s consolidated financial statements as of and for the quarter ended April 3, 2022, the Company’s future assessment of the magnitude and duration of COVID-19, as well as other factors, could result in material impacts to the Company’s consolidated financial statements in future reporting periods. New Accounting Standards The Company assesses the adoption impacts of recently issued accounting standards by the Financial Accounting Standards Board on the Company's financial statements as well as material updates to previous assessments, if any, from the Company’s Annual Report on Form 10-K for the fiscal year ended January 2, 2022. There were no new material accounting standards issued in the fiscal first quarter of 2022 that impacted the Company. Recently Adopted Accounting Standards There were no new material accounting standards adopted in the fiscal first quarter of 2022. Reclassification Certain prior period amounts have been reclassified to conform to current year presentation. |
Inventories
Inventories | 3 Months Ended |
Apr. 03, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES (Dollars in Millions) April 3, 2022 January 2, 2022 Raw materials and supplies $ 1,679 1,592 Goods in process 2,629 2,287 Finished goods 6,682 6,508 Total inventories $ 10,990 10,387 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 3 Months Ended |
Apr. 03, 2022 | |
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 2021. 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) April 3, 2022 January 2, 2022 Intangible assets with definite lives: Patents and trademarks — gross $ 37,960 38,572 Less accumulated amortization (20,492) (20,088) Patents and trademarks — net 17,468 18,484 Customer relationships and other intangibles — gross 22,910 23,011 Less accumulated amortization (12,147) (11,925) Customer relationships and other intangibles — net (1) 10,763 11,086 Intangible assets with indefinite lives: Trademarks 6,947 6,985 Purchased in-process research and development (2) 9,242 9,837 Total intangible assets with indefinite lives 16,189 16,822 Total intangible assets — net $ 44,420 46,392 (1) The majority is comprised of customer relationships (2) In the fiscal first quarter of 2022, the Company recorded an intangible asset impairment charge of approximately $0.6 billion related to an in-process research and development asset, bermekimab (JnJ-77474462), an investigational drug for the treatment of Atopic Dermatitis (AD) and Hidradenitis Suppurativa (HS). Additional information regarding efficacy of the AD indication became available which led the Company to the decision to terminate the development of bermekimab for AD. The Company acquired all rights to bermekimab from XBiotech, Inc.in the fiscal year 2020. Goodwill as of April 3, 2022 was allocated by segment of business as follows: (Dollars in Millions) Consumer Health Pharmaceutical MedTech Total Goodwill at January 2, 2022 $ 9,810 10,580 14,856 35,246 Goodwill, related to acquisitions — — 73 73 Currency translation/Other (195) (170) (19) (384) Goodwill at April 3, 2022 $ 9,615 10,410 14,910 34,935 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 $1.2 billion for the fiscal first quarters ended April 3, 2022 and April 4, 2021, respectively. Intangible asset write-downs are included in Other (income) expense, net. The estimated amortization expense for approved products, before tax, for the five succeeding years is approximately: (Dollars in Millions) 2022 2023 2024 2025 2026 $4,600 4,600 4,400 3,600 3,000 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 |
Apr. 03, 2022 | |
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 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 April 3, 2022, the cumulative amount of cash collateral paid by the Company under the CSA amounted to $1.1 billion net, related to net investment and cash flow hedges. 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 April 3, 2022, the Company had notional amounts outstanding for forward foreign exchange contracts, cross currency interest rate swaps and interest rate swaps of $42.5 billion, $37.4 billion and $10.0 billion, respectively. As of January 2, 2022, the Company had notional amounts outstanding for forward foreign exchange contracts, cross currency interest rate swaps and interest rate swaps of $45.8 billion, $37.4 billion and $10.0 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 April 3, 2022, the balance of deferred net loss on derivatives included in accumulated other comprehensive income was $632 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 and net investment hedge 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 2022 and 2021, net of tax: April 3, 2022 April 4, 2021 (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 $ — — — (531) — — — — — — Derivatives designated as hedging instruments — — — 531 — — — — — — 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 — — — 45 — — — — 40 — Amount of gain or (loss) recognized in AOCI — — — 45 — — — — 40 — Gain (Loss) on cash flow hedging relationship: Forward foreign exchange contracts: Amount of gain or (loss) reclassified from AOCI into income (17) (52) 23 — (18) 17 34 (113) — 3 Amount of gain or (loss) recognized in AOCI 22 (94) 33 — (73) (3) (193) (76) — 17 Cross currency interest rate swaps contracts: Amount of gain or (loss) reclassified from AOCI into income — — — 120 — — — 92 — Amount of gain or (loss) recognized in AOCI $ — — — (128) — — — — (307) — As of April 3, 2022, and January 2, 2022, 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 Gain/ (Loss) Included in the Carrying Amount of the Hedged Liability (Dollars in Millions) April 3, 2022 January 2, 2022 April 3, 2022 January 2, 2022 Long-term Debt 9,313 9,793 (694) (142) The following table is the effect of derivatives not designated as hedging instruments for the fiscal first quarters ended 2022 and 2021: Gain/(Loss) (Dollars in Millions) Location of Gain /(Loss) Recognized in Income on Derivative Fiscal First Quarter Ended Derivatives Not Designated as Hedging Instruments April 3, 2022 April 4, 2021 Foreign Exchange Contracts Other (income) expense $ 29 (16) The following table is the effect of net investment hedges for the fiscal first quarters ended in 2022 and 2021: Gain/(Loss) Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income Into Income Gain/(Loss) Reclassified From (Dollars in Millions) April 3, 2022 April 4, 2021 April 3, 2022 April 4, 2021 Debt $ 68 209 Interest (income) expense — — Cross Currency interest rate swaps $ 560 361 Interest (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) January 2, 2022 April 3, 2022 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 $ 1,884 (402) (30) 1,452 1,452 Equity Investments without readily determinable value $ 500 (5) 10 505 505 (1) Recorded in Other Income/Expense (2) Other includes impact of currency For equity investments without readily determinable market values, there was a decrease of $5 million in the fair value reflected in net income as a result of impairments. 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 holds acquisition related contingent liabilities based upon certain regulatory and commercial events, which are classified as Level 3, whose values are determined using discounted cash flow methodologies or similar techniques for which the determination of fair value requires significant judgment or estimations. 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 April 3, 2022 and January 2, 2022 were as follows: April 3, 2022 January 2, 2022 (Dollars in Millions) Level 1 Level 2 Level 3 Total Total (1) Derivatives designated as hedging instruments: Assets: Forward foreign exchange contracts $ — 742 — 742 540 Interest rate contracts (2) — 975 — 975 796 Total — 1,717 — 1,717 1,336 Liabilities: Forward foreign exchange contracts — 1,058 — 1,058 881 Interest rate contracts (2) — 1,652 — 1,652 979 Total — 2,710 — 2,710 1,860 Derivatives not designated as hedging instruments: Assets: Forward foreign exchange contracts — 36 — 36 24 Liabilities: Forward foreign exchange contracts — 68 — 68 28 Other Investments: Equity investments (3) 1,452 — — 1,452 1,884 Debt securities (4) — 19,583 — 19,583 19,727 Other Liabilities Contingent consideration (5) $ — — 486 486 533 Gross to Net Derivative Reconciliation April 3, 2022 January 2, 2022 (Dollars in Millions) Total Gross Assets $ 1,753 1,360 Credit Support Agreement (CSA) (1,655) (1,285) Total Net Asset 98 75 Total Gross Liabilities 2,778 1,888 Credit Support Agreement (CSA) (2,709) (1,855) Total Net Liabilities $ 69 33 Summarized information about changes in liabilities for contingent consideration is as follows: April 3, 2022 April 4, 2021 (Dollars in Millions) Beginning Balance $ 533 $ 633 Changes in estimated fair value (6) (47) 15 Additions — — Payments — (48) Ending Balance $ 486 $ 600 (1) 2021 assets and liabilities are all classified as Level 2 with the exception of equity investments of $1,884 million, which are classified as Level 1 and contingent consideration of $533 million, classified as Level 3. (2) Includes cross currency interest rate swaps and interest rate swaps. (3) Classified as non-current other assets. (4) Classified within cash equivalents and current marketable securities. (5) Includes $469 million and $520 million, classified as non-current other liabilities as of April 3, 2022 and January 2, 2022, respectively. Includes $17 million and $13 million classified as current liabilities as of April 3, 2022 and January 2, 2022, respectively. (6) Ongoing fair value adjustment amounts are primarily recorded in Research and Development expense. The Company's cash, cash equivalents and current marketable securities as of April 3, 2022 comprised: (Dollars in Millions) Carrying Amount Gain/( Loss) Estimated Fair Value Cash & Cash Equivalents Current Marketable Securities Cash $ 3,128 — 3,128 3,128 — Non-U.S. sovereign securities (1) 329 — 329 — 329 U.S. reverse repurchase agreements 1,449 — 1,449 1,449 — Corporate debt securities (1) 3,557 (6) 3,551 540 3,017 Money market funds 1,579 — 1,579 1,579 — Time deposits (1) 763 — 763 763 — Subtotal 10,805 (6) 10,799 7,459 3,346 Unrealized Loss U.S. Gov't securities 19,354 (19) 19,335 2,968 16,367 Other sovereign securities 3 — 3 — 3 Corporate debt securities 246 (1) 245 36 209 Subtotal available for sale debt (2) $ 19,603 (20) 19,583 3,004 16,579 Total cash, cash equivalents and current marketable securities $ 30,408 (26) 30,382 10,463 19,925 (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. As of the fiscal year ended January 2, 2022 the carrying amount was approximately 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 to fund current operations and are classified as cash equivalents and current marketable securities. The contractual maturities of the available for sale securities as of April 3, 2022 are as follows: (Dollars in Millions) Cost Basis Fair Value Due within one year $ 19,585 19,564 Due after one year through five years 19 19 Due after five years through ten years — — Total debt securities $ 19,604 19,583 Financial Instruments not measured at Fair Value: The following financial liabilities are held at carrying amount on the consolidated balance sheet as of April 3, 2022: (Dollars in Millions) Carrying Amount Estimated Fair Value Financial Liabilities Current Debt $ 4,297 4,298 Non-Current Debt 6.73% Debentures due 2023 250 266 3.375% Notes due 2023 802 820 0.650% Notes due 2024 (750MM Euro 1.1311) 824 829 5.50% Notes due 2024 (500 MM GBP 1.3485) 654 713 2.625% Notes due 2025 749 762 0.55% Notes due 2025 950 886 2.45% Notes due 2026 1,995 1,981 2.95% Notes due 2027 930 934 0.95% Notes due 2027 1,436 1,307 2.90% Notes due 2028 1,496 1,489 1.150% Notes due 2028 (750MM Euro 1.1311) 826 829 6.95% Notes due 2029 298 379 1.30% Notes due 2030 1,672 1,486 4.95% Debentures due 2033 498 590 4.375% Notes due 2033 855 959 1.650% Notes due 2035 (1.5B Euro 1.1311) 1,654 1,687 3.55% Notes due 2036 917 947 5.95% Notes due 2037 993 1,288 3.625% Notes due 2037 1,416 1,463 3.40% Notes due 2038 992 999 5.85% Debentures due 2038 697 901 4.50% Debentures due 2040 540 617 2.10% Notes due 2040 914 777 4.85% Notes due 2041 297 342 4.50% Notes due 2043 496 565 3.70% Notes due 2046 1,975 2,097 3.75% Notes due 2047 906 969 3.50% Notes due 2048 743 766 2.25% Notes due 2050 914 759 2.45% Notes due 2060 1,155 942 Other 7 7 Total Non-Current Debt $ 28,851 29,356 The weighted average effective interest rate on non-current debt is 3.04%. The excess of the estimated fair value over the carrying value of debt was $3.2 billion at January 2, 2022. The current debt balance as of April 3, 2022 includes $3.8 billion of commercial paper which has a weighted average interest rate of 0.37% and a weighted average maturity of approximately three months. |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 03, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The worldwide effective income tax rates for the fiscal first quarters of 2022 and 2021 were 12.2% and 16.6%, respectively. This decrease in the consolidated tax rate is primarily due to lower income in higher tax jurisdictions, primarily in the U.S., compared to the same period in the prior year. This lower income in the first fiscal quarter of 2022 was caused by a mark to market adjustment to the Company’s investment portfolio and the impairment of the bermekimab AD IPR&D (for further information see Note 3 of the Consolidated Financial Statements), both at the U.S. statutory rate. The impact of the income mix was partially offset by incremental tax costs directly related to the planned separation of the Company’s Consumer Health business. The Company also had tax benefits received from stock-based compensation that were either exercised or vested during each of the fiscal first quarters. Additionally, the Company’s effective tax rate benefited from the impact of certain provisions of the Tax Cuts and Jobs Act of 2017 that became effective in fiscal year 2022. As of April 3, 2022, the Company had approximately $3.3 billion of liabilities from unrecognized tax benefits. The Company conducts business and files tax returns in numerous countries and currently has tax audits in progress in a number of jurisdictions. With respect to the United States, the IRS has completed its audit for the tax years through 2012 and is currently auditing tax years 2013 through 2016. In other major jurisdictions where the Company conducts business, the years that remain open to tax audit go back to the year 2008. The Company believes it is possible that tax audits may be completed over the next twelve months by taxing authorities in some jurisdictions outside of the United States. However, the Company is not able to provide a reasonably reliable estimate of the timing of any other future tax payments relating to uncertain tax positions. |
Pensions and Other Benefit Plan
Pensions and Other Benefit Plans | 3 Months Ended |
Apr. 03, 2022 | |
Retirement Benefits [Abstract] | |
Pensions and Other Benefit Plans | PENSIONS AND OTHER BENEFIT PLANS Components of Net Periodic Benefit Cost Net periodic benefit costs for the Company’s defined benefit retirement plans and other benefit plans include the following components: Fiscal First Quarter Ended Retirement Plans Other Benefit Plans (Dollars in Millions) April 3, 2022 April 4, 2021 April 3, 2022 April 4, 2021 Service cost $ 321 353 80 77 Interest cost 230 193 26 20 Expected return on plan assets (699) (680) (2) (2) Amortization of prior service cost/(credit) (46) (45) (1) (8) Recognized actuarial losses 162 314 30 38 Curtailments and settlements 1 1 — — Net periodic benefit cost/(credit) $ (31) 136 133 125 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, including Cost of products sold, Research and development expense, and Selling, marketing and administrative expenses. 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 three months ended April 3, 2022, the Company contributed $29 million and $5 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 |
Apr. 03, 2022 | |
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) January 2, 2022 $ (10,017) (3) (2,702) (336) (13,058) Net change (554) (13) 164 (296) (699) April 3, 2022 $ (10,571) (16) (2,538) (632) (13,757) 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 |
Apr. 03, 2022 | |
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: Fiscal First Quarter Ended (Shares in Millions) April 3, 2022 April 4, 2021 Basic net earnings per share $ 1.96 2.35 Average shares outstanding — basic 2,629.2 2,631.6 Potential shares exercisable under stock option plans 140.1 128.4 Less: shares which could be repurchased under treasury stock method (102.8) (87.3) Average shares outstanding — diluted 2,666.5 2,672.7 Diluted net earnings per share $ 1.93 2.32 The diluted net earnings per share calculation for the fiscal first quarter ended April 3, 2022 included all shares related to stock options, as the exercise price of all options was less than the average market value of the Company’s stock. |
Segments of Business and Geogra
Segments of Business and Geographic Areas | 3 Months Ended |
Apr. 03, 2022 | |
Segment Reporting [Abstract] | |
Segments of Business and Geographic Areas | SEGMENTS OF BUSINESS AND GEOGRAPHIC AREAS SALES BY SEGMENT OF BUSINESS Fiscal First Quarter Ended (Dollars in Millions) April 3, April 4, Percent CONSUMER HEALTH OTC (1) U.S. $ 670 599 11.8 % International 791 673 17.5 Worldwide 1,461 1,273 14.8 Skin Health/Beauty U.S. 544 634 (14.2) International 468 529 (11.6) Worldwide 1,012 1,163 (13.0) Oral Care U.S. 143 163 (12.6) International 223 254 (12.0) Worldwide 366 417 (12.2) Baby Care U.S. 85 96 (11.5) International 270 293 (7.7) Worldwide 355 389 (8.6) Women's Health U.S. 3 3 7.2 International 224 219 2.5 Worldwide 228 222 2.6 Wound Care/Other U.S. 112 115 (3.3) International 52 61 (15.3) Worldwide 164 177 (7.4) TOTAL CONSUMER HEALTH U.S. 1,557 1,611 (3.4) International 2,029 2,030 0.0 Worldwide 3,586 3,641 (1.5) PHARMACEUTICAL Immunology U.S. 2,501 2,413 3.7 International 1,617 1,501 7.7 Worldwide 4,119 3,914 5.2 REMICADE U.S. 358 489 (26.8) U.S. Exports 80 57 40.5 International 225 232 (2.6) Worldwide 663 777 (14.7) SIMPONI / SIMPONI ARIA U.S. 287 255 12.5 International 283 307 (7.6) Worldwide 571 562 1.5 STELARA U.S. 1,379 1,331 3.6 International 909 817 11.2 Worldwide 2,288 2,148 6.5 TREMFYA U.S. 391 274 42.7 International 199 143 38.8 Worldwide 590 418 41.3 OTHER IMMUNOLOGY U.S. 6 7 (3.2) International 0 2 * Worldwide 6 8 (22.0) Infectious Diseases U.S. 461 512 (10.0) International 836 485 72.3 Worldwide 1,297 998 30.0 COVID-19 VACCINE U.S. 75 100 (24.9) International 382 0 * Worldwide 457 100 * EDURANT / rilpivirine U.S. 9 10 (12.6) International 239 233 2.5 Worldwide 248 243 1.8 PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA U.S. 369 380 (3.1) International 132 166 (20.3) Worldwide 501 546 (8.3) OTHER INFECTIOUS DISEASES (1) U.S. 8 21 (62.5) International 83 87 (3.8) Worldwide 91 108 (15.3) Neuroscience U.S. 843 771 9.3 International 898 943 (4.8) Worldwide 1,741 1,715 1.5 CONCERTA / methylphenidate U.S. 35 47 (26.5) International 122 123 (1.3) Worldwide 157 171 (8.3) INVEGA SUSTENNA / XEPLION / INVEGA TRINZA / TREVICTA U.S. 661 589 12.2 International 387 376 3.0 Worldwide 1,048 965 8.6 RISPERDAL CONSTA U.S. 63 67 (6.4) International 66 89 (26.1) Worldwide 129 157 (17.6) OTHER NEUROSCIENCE (1) U.S. 84 67 25.5 International 323 355 (8.9) Worldwide 408 422 (3.5) Oncology U.S. 1,582 1,377 14.9 International 2,369 2,193 8.0 Worldwide 3,950 3,570 10.6 DARZALEX U.S. 953 691 37.9 International 903 674 34.0 Worldwide 1,856 1,365 36.0 ERLEADA U.S. 206 171 20.3 International 194 90 * Worldwide 400 261 53.0 IMBRUVICA U.S. 370 444 (16.7) International 668 680 (1.8) Worldwide 1,038 1,125 (7.7) ZYTIGA / abiraterone acetate U.S. 19 50 (62.1) International 520 588 (11.6) Worldwide 539 638 (15.6) OTHER ONCOLOGY U.S. 34 21 63.1 International 84 161 (47.7) Worldwide 118 182 (35.1) Pulmonary Hypertension U.S. 572 573 (0.2) International 279 288 (2.9) Worldwide 852 861 (1.1) OPSUMIT U.S. 273 272 0.5 International 170 179 (4.8) Worldwide 443 450 (1.6) UPTRAVI U.S. 269 259 3.9 International 56 46 20.9 Worldwide 325 305 6.5 OTHER PULMONARY HYPERTENSION U.S. 30 42 (29.0) International 53 63 (15.2) Worldwide 83 105 (20.8) Cardiovascular / Metabolism / Other U.S. 672 799 (15.8) International 238 245 (3.0) Worldwide 910 1,044 (12.8) XARELTO U.S. 508 589 (13.8) International — — — Worldwide 508 589 (13.8) INVOKANA / INVOKAMET U.S. 60 87 (30.7) International 68 63 7.5 Worldwide 128 150 (14.6) OTHER (1,2) U.S. 104 122 (14.9) International 170 182 (6.6) Worldwide 274 305 (10.0) TOTAL PHARMACEUTICAL U.S. 6,632 6,446 2.9 International 6,237 5,655 10.3 Worldwide 12,869 12,101 6.3 MEDTECH (3) Interventional Solutions U.S. 494 434 13.8 International 597 514 16.2 Worldwide 1,092 949 15.1 Orthopaedics U.S. 1,289 1,249 3.2 International 899 864 4.1 Worldwide 2,188 2,113 3.5 HIPS U.S. 225 209 7.3 International 164 146 12.2 Worldwide 389 356 9.3 KNEES U.S. 201 185 8.6 International 138 132 4.1 Worldwide 339 317 6.7 TRAUMA U.S. 475 450 5.5 International 273 282 (3.3) Worldwide 748 733 2.1 SPINE, SPORTS & OTHER U.S. 387 404 (4.1) International 324 303 7.0 Worldwide 712 707 0.6 Surgery U.S. 921 898 2.5 International 1,513 1,474 2.7 Worldwide 2,434 2,372 2.6 ADVANCED U.S. 417 405 3.0 International 729 713 2.2 Worldwide 1,146 1,118 2.5 GENERAL U.S. 504 493 2.1 International 784 761 3.1 Worldwide 1,288 1,254 2.7 Vision U.S. 521 472 10.4 International 736 673 9.4 Worldwide 1,257 1,145 9.8 CONTACT LENSES / OTHER U.S. 400 371 7.7 International 511 486 5.1 Worldwide 910 857 6.2 SURGICAL U.S. 121 101 20.2 International 226 187 20.5 Worldwide 347 288 20.4 TOTAL MEDTECH U.S. 3,225 3,054 5.6 International 3,746 3,525 6.3 Worldwide 6,971 6,579 5.9 WORLDWIDE U.S. 11,414 11,111 2.7 International 12,012 11,210 7.2 Worldwide $ 23,426 22,321 5.0 % *Percentage greater than 100% or not meaningful (1) In the fiscal first quarter of 2021, approximately $0.1 billion of certain international OTC products, primarily in China, were reclassified from the Pharmaceutical segment to the Consumer Health segment based on operational changes (2) Inclusive of PROCRIT / EPREX which was previously disclosed separately (3) Previously referred to as Medical Devices EARNINGS BEFORE PROVISION FOR TAXES BY SEGMENT* Fiscal First Quarter Ended (Dollars in Millions) April 3, April 4, Percent Consumer Health (1) $ 686 842 (18.5)% Pharmaceutical (2) 3,924 5,169 (24.1) MedTech (3) 1,477 1,629 (9.3) Segment earnings before provision for taxes 6,087 7,640 (20.3) Less: Expense not allocated to segments (4) 123 211 Less: Consumer Health separation costs 102 — Worldwide income before tax $ 5,862 7,429 (21.1)% *Fiscal first quarter 2021 earnings before provision for taxes has been reclassified as certain international OTC products, primarily in China, were reclassified from the Pharmaceutical segment to the Consumer Health segment based on operational changes (1) Consumer Health includes: • Intangible amortization expense of $0.1 billion in both the fiscal first quarter of 2022 and 2021 (2) Pharmaceutical includes: • Divestiture gains of $0.6 billion in the fiscal first quarter of 2021 related to two brands outside the U.S. • Intangible amortization expense of $0.8 billion and $0.9 billion in the fiscal first quarter of 2022 and 2021, respectively • In the fiscal first quarter of 2022, the Company recorded an intangible asset impairment charge of approximately $0.6 billion related to an in-process research and development asset, bermekimab (JnJ-77474462), an investigational drug for the treatment of Atopic Dermatitis (AD) and Hidradenitis Suppurativa (HS). Additional information regarding efficacy of the AD indication became available which led the Company to the decision to terminate the development of bermekimab for AD. • A loss of $0.4 billion related to the change in the fair value of securities in the fiscal first quarter of 2022 In fiscal 2021 and 2020, the Company entered into a series of contract manufacturing arrangements for vaccine production with third party contract manufacturing organizations. These arrangements provide the Company with future supplemental commercial capacity for vaccine production and potentially transferable rights to such production if capacity is not required. Amounts paid for services to be delivered and contractually obligated to be paid to these contract manufacturing organizations of approximately $0.9 billion are reflected in the prepaid expenses and other, other assets, accrued liabilities and other liabilities accounts in the Company's consolidated balance sheet upon execution of each agreement. Additionally, the Company has entered into certain vaccine development cost sharing arrangements with government related organizations. The Company continues to evaluate the global demand for the COVID-19 vaccine and its related supply. (3) MedTech includes: • A restructuring related charge of $0.1 billion in both the fiscal first quarter of 2022 and 2021 • Intangible amortization expense of $0.3 billion in both the fiscal first quarter of 2022 and 2021 (4) Amounts not allocated to segments include interest income/expense and general corporate income/expense. SALES BY GEOGRAPHIC AREA Fiscal First Quarter Ended (Dollars in Millions) April 3, 2022 April 4, 2021 Percent United States $ 11,414 11,111 2.7 % Europe 6,024 5,414 11.3 Western Hemisphere, excluding U.S. 1,482 1,424 4.1 Asia-Pacific, Africa 4,506 4,372 3.1 Total $ 23,426 22,321 5.0 % |
Acquisitions and Divestitures
Acquisitions and Divestitures | 3 Months Ended |
Apr. 03, 2022 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | ACQUISITIONS AND DIVESTITURESThere were no material acquisitions in the fiscal first quarter of 2022. During the first fiscal quarter of 2021, in separate transactions, the Company divested two brands outside the U.S. within the Pharmaceutical segment. The Company recognized a pre-tax gain recorded in Other (income) expense, net, of approximately $0.6 billion. |
Legal Proceedings
Legal Proceedings | 3 Months Ended |
Apr. 03, 2022 | |
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; 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 April 3, 2022, 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 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 including timing of related payments. The ability to make such estimates and judgments can be affected by various factors including, among other things, 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; procedural or jurisdictional issues; the uncertainty and unpredictability of the number of potential claims; ability to achieve comprehensive multi-party settlements; complexity of related cross-claims and counterclaims; and/or there are numerous parties involved. To the extent adverse awards, judgments or 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. 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. 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 JOHNSON’S Baby Powder; INVOKANA; and ETHICON PHYSIOMESH Flexible Composite Mesh. As of April 3, 2022, in the United States there were approximately 230 plaintiffs with direct claims in pending lawsuits regarding injuries allegedly due to the DePuy ASR XL Acetabular System and DePuy ASR Hip Resurfacing System; 3,900 with respect to the PINNACLE Acetabular Cup System; 9,800 with respect to pelvic meshes; 8,600 with respect to RISPERDAL; 4,300 with respect to XARELTO; 40,400 with respect to body powders containing talc; 80 with respect to INVOKANA; and 4,800 with respect to ETHICON PHYSIOMESH Flexible Composite Mesh. The number of pending lawsuits is expected to fluctuate as certain lawsuits are settled or dismissed and additional lawsuits are filed. In August 2010, DePuy Orthopaedics, Inc. (DePuy) announced a worldwide voluntary recall of its ASR XL Acetabular System and DePuy ASR Hip Resurfacing System (ASR Hip) used in hip replacement surgery. Claims for personal injury have been made against DePuy and Johnson & Johnson. 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, India and Italy. In November 2013, DePuy reached an agreement with a Court-appointed committee of lawyers representing ASR Hip 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 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 2013 and prior to February 15, 2017. This settlement program has resolved more than 10,000 claims, thereby 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 the class actions filed in that country. 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 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 also has 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 had been organized as a multi-district litigation (MDL) in the United States District Court for the Southern District of West Virginia. In March 2021, the MDL Court entered an order closing the MDL. The MDL Court has remanded cases for trial to the jurisdictions where the case was originally filed and additional pelvic mesh lawsuits have been filed, and remain, outside of the MDL. The Company has settled or otherwise resolved the majority of the United States cases and the estimated costs associated with these settlements and the remaining cases are reflected in the Company’s accruals. In addition, class actions and individual personal injury cases or claims seeking damages for alleged injury resulting from Ethicon’s pelvic mesh devices have been commenced in various countries outside of the United States, including claims and cases in the United Kingdom, the Netherlands and class actions in Israel, Australia and Canada. In November 2019, the Federal Court of Australia issued a judgment regarding its findings with respect to liability in relation to the three Lead Applicants and generally in relation to the design, manufacture, pre and post-market assessments and testing, and supply and promotion of the devices in Australia used to treat stress urinary incontinence and pelvic organ prolapse. In March 2020, the Court issued a decision and entered damages awards to the three Lead Applicants. The Company appealed the decision to the intermediate appellate court, the Full Court. The appeal was heard in February 2021 and, in March 2021, the Full Court entered a judgment dismissing the appeal. An application for special leave to the High Court of Australia was filed in April 2021, and the High Court heard oral argument on the application in November 2021. Special leave was refused. While this brings an end to the appellate process, there will now be an individual case assessment process for the remaining group member claims. In March 2022, the Court appointed a barrister to prepare a written report and recommendation on the form and mechanism of the individual case assessment process, due by August 2022, with a court hearing on those findings later that month. The class actions in Canada were discontinued in 2020 as a result of a settlement of a group of cases and an agreement to resolve the Israeli class action was reached in May 2021. The parties in the Israeli class action are currently finalizing the terms of the settlement. A motion to approve the settlement is expected to be filed with the Court by May 2022. 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 (Physiomesh), claims for personal injury have been made against Ethicon, Inc. (Ethicon) 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) also has been formed in New Jersey state court and assigned to Atlantic County for cases pending in New Jersey. In addition to the matters in the MDL and MCL, there are additional lawsuits pending in the United States District Court for the Southern District of Ohio, which are part of the MDL for polypropylene mesh devices manufactured by C.R. Bard, Inc., one multi-plaintiff lawsuit pending in Oklahoma state court and lawsuits pending outside the United States. In May 2021, Ethicon and lead counsel for the plaintiffs entered into a term sheet to resolve approximately 3,600 Physiomesh cases (covering approximately 4,300 plaintiffs) pending in the MDL and MCL at that time. A master settlement agreement (MSA) was entered into in September 2021 and includes 3,729 cases in the MDL and MCL. All deadlines and trial settings in those proceedings are currently stayed pending the completion of the settlement agreement. The deadline for issuance of Individual Allocation amounts by the Special Master was March 2022. Plaintiffs requested an extension of the deadline. Post-settlement cases in the Physiomesh MDL and MCL are subject to docket control orders requiring early expert reports and discovery requirements. As of April 2022, there are approximately 105 active cases subject to these orders which are being reviewed and evaluated. Claims have also been filed against Ethicon and Johnson & Johnson alleging personal injuries arising from the PROCEED Mesh and PROCEED Ventral Patch hernia mesh products. In March 2019, the New Jersey Supreme Court entered an order consolidating these cases pending in New Jersey as an MCL in Atlantic County Superior Court. Additional cases have been filed in various federal and state courts in the United States, and in jurisdictions outside the United States. Discovery is underway in the MCL proceedings. Ethicon and Johnson & Johnson also have been subject to claims for personal injuries arising from the PROLENE Polypropylene Hernia System. In January 2020, the New Jersey Supreme Court created an MCL in Atlantic County Superior Court to handle such cases. Cases involving this product have also been filed in other federal and state courts in the United States. The Company has established accruals with respect to product liability litigation associated with ETHICON PHYSIOMESH Flexible Composite Mesh, PROCEED Mesh and PROCEED Ventral Patch, and PROLENE Polypropylene Hernia System products. Claims for personal injury have been made against Janssen Pharmaceuticals, Inc. and Johnson & Johnson arising out of the use of RISPERDAL, and related compounds, indicated for the treatment of schizophrenia, acute manic or mixed episodes associated with bipolar I disorder and irritability associated with autism. Lawsuits primarily have been 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 successfully defended a number of these cases but there have been verdicts against the Company, including a verdict in October 2019 of $8.0 billion of punitive damages related to one plaintiff, which the trial judge reduced to $6.8 million in January 2020. In September 2021, the Company entered into a settlement in principle with the counsel representing plaintiffs in this matter and in substantially all of the outstanding cases in the United States. The costs associated with this and other 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 Healthcare AG, and certain of its affiliates. 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 were filed in state courts across the United States. Many of these cases were consolidated into a state mass tort litigation in Philadelphia, Pennsylvania and in a coordinated proceeding in Los Angeles, California. Class action lawsuits also have been filed in Canada. In March 2019, JPI and Johnson & Johnson announced an agreement in principle to settle the XARELTO cases in the United States; the settlement agreement was executed in May 2019, the settlement became final in December 2019, and the settlement was funded in January 2020. This resolved the majority of cases pending in the United States. The Company has established accruals for its costs associated with the United States settlement program and XARELTO related product liability litigation. A significant number of personal injury claims alleging that talc causes cancer were 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 these personal injury lawsuits, filed in state and federal courts in the United States as well as outside of the United States, continued to increase. In talc cases that previously have gone to trial, the Company has obtained a number of defense verdicts, but there also have been verdicts against the Company, many of which have been reversed on appeal. In June 2020, the Missouri Court of Appeals reversed in part and affirmed in part a July 2018 verdict of $4.7 billion in Ingham v. Johnson & Johnson, et al., No. ED 207476 (Mo. App.), reducing the overall award to $2.1 billion. An application for transfer of the case to the Missouri Supreme Court was subsequently denied and in June 2021, a petition for certiorari, seeking a review of the Ingham decision by the United States Supreme Court, was denied. In June 2021, the Company paid the award, which, including interest, totaled approximately $2.5 billion. The facts and circumstances, including the terms of the award, were unique to the Ingham decision and not representative of other claims brought against the Company. The Company continues to believe that it has strong legal grounds to contest the other talc verdicts that it has appealed. Notwithstanding the Company’s confidence in the safety of its talc products, in certain circumstances the Company has settled cases. In October 2021, Johnson & Johnson Consumer Inc. (Old JJCI) implemented a corporate restructuring (the 2021 Corporate Restructuring). As a result of that restructuring, Old JJCI ceased to exist and three new entities were created: (a) LTL Management LLC, a North Carolina limited liability company (LTL or Debtor); (b) Royalty A&M LLC, a North Carolina limited liability company and a direct subsidiary of LTL (RAM); and (c) the Debtor’s direct parent, Johnson & Johnson Consumer Inc., a New Jersey company (New JJCI). The Debtor received certain of Old JJCI’s assets and became solely responsible for the talc-related liabilities of Old JJCI, including all liabilities related in any way to injury or damage, or alleged injury or damage, sustained or incurred in the purchase or use of, or exposure to, talc, including talc contained in any product, or to the risk of, or responsibility for, any such damage or injury, except for any liabilities for which the exclusive remedy is provided under a workers’ compensation statute or act (the Talc-Related Liabilities). In October 2021, notwithstanding the Company’s confidence in the safety of its talc products, the Debtor filed a voluntary petition with the United States Bankruptcy Court for the Western District of North Carolina, Charlotte Division, seeking relief under chapter 11 of the Bankruptcy Code (the LTL Bankruptcy Case). As a result of the LTL Bankruptcy Case, the North Carolina Bankruptcy Court entered a temporary restraining order staying all litigation against LTL and Old JJCI. On November 15, 2021, the North Carolina Bankruptcy Court confirmed the scope of the stay, issuing a Preliminary Injunction (PI) prohibiting and enjoining the commencement and prosecution of talc-related claims against LTL, Old JJCI, New JJCI, Johnson & Johnson, other of their corporate affiliates, identified retailers, insurance companies, and certain other parties (the Protected Parties). The LTL Bankruptcy Case was transferred to the United States Bankruptcy Court for the District of New Jersey in November 2021, and that court extended the PI through the end of February 2022. Claimants filed motions to dismiss the LTL Bankruptcy Case and, following a multiple day hearing, the New Jersey Bankruptcy Court denied those motions by order issued in March 2022. The New Jersey Bankruptcy Court simultaneously issued another order extending the stay as to the Protected Parties. The claimants subsequently filed notices of appeal as to the denial of the motions to dismiss and the extension of the stay, and also asked the New Jersey Bankruptcy Court for leave to pursue direct appeals to the Third Circuit Court of Appeals, which was granted. In April 2022, claimants filed a request with Third Circuit Court of Appeals to hear the case, and LTL filed its opposition to the request. While the New Jersey Bankruptcy Court’s order effectively stays all of the Company’s talc-related personal injury litigation, LTL has agreed to lift the stay on a small number of appeals where appeal bonds have been filed. The Company has agreed to provide funding to LTL for the payment of amounts the New Jersey Bankruptcy Court determines are owed by LTL and the establishment of a $2 billion trust in furtherance of this purpose. The Company has established a reserve for approximately $2 billion in connection with the aforementioned trust. After and as a result of the filing of the LTL Bankruptcy Case, the Company de-consolidated LTL, which is a related party. The impact of the de-consolidation is not material to the Company. The parties have not yet reached a resolution of all talc matters in the LTL Bankruptcy Case, and the Company is unable to estimate the possible loss or range of loss beyond the amount accrued. 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 petition under chapter 11 of the United States Code (the Bankruptcy Code) in the United States Bankruptcy Court for the District of Delaware (Imerys Bankruptcy). The Imerys Bankruptcy relates to Imerys’s potential liability for personal injury from exposure to talcum powder sold by Imerys. In its bankruptcy, Imerys alleges it has claims against the Company for indemnification and rights to joint insurance proceeds. In May 2020, Imerys, its parent Imerys S.A., the Tort Claimants’ Committee (TCC), and the Future Claimants’ Representative (FCR) (collectively, the Plan Proponents) filed their Plan of Reorganization (the Plan) and the Disclosure Statement related thereto. The Plan Proponents have since filed numerous amendments to the Plan and Disclosure Statement. A hearing on the Plan Proponent’s Disclosure Statement was held in January 2021, and the Court entered an order approving the Disclosure Statement, allowing Imerys to proceed with soliciting votes on the Plan. In March 2021, the Company voted to reject the Plan and opted out of the consensual releases in the Plan. In April 2021, the Plan Proponents announced the Plan had received the requisite number of accepting votes to confirm the Plan. The Company challenged certain improprieties with respect to portions of the vote and sought to disqualify those votes. In October 2021, the Bankruptcy Court issued a ruling deeming thousands of votes as withdrawn as improperly voted. In October 2021, Imerys cancelled the confirmation hearing on the Plan. Imerys, the TCC, the FCR, and certain of Imerys’s insurers (the Mediation Parties) have since agreed to engage in mediation. In July 2021, Imerys commenced an adversary proceeding against the Company in the Imerys Bankruptcy (the Imerys adversary proceeding). The Imerys adversary proceeding sought, among other things, certain declarations with respect to the indemnification obligations allegedly owed by the Company to Imerys. The TCC and FCR simultaneously filed a motion for temporary restraining order and preliminary injunction seeking to enjoin the Company from undergoing a corporate restructuring that would separate the Company’s talc liabilities from its other assets. The Bankruptcy Court denied the motion. The Company thereafter filed a motion to dismiss the adversary proceeding. The Bankruptcy Court has not yet decided the motion to dismiss. In October 2021, the Company filed a Notice of Bankruptcy Filing and Stay of Proceedings clarifying that the automatic stay arising upon the filing of the LTL Bankruptcy Case should apply to the Imerys adversary proceeding. In June 2020, Cyprus Mines Corporation and its parent (together, Cyprus), which had owned certain Imerys talc mines, filed an adversary proceeding against the Company and Imerys in the Imerys Bankruptcy seeking a declaration of indemnity rights under certain contractual agreements (the Cyprus adversary proceeding). The Company denies such indemnification is owed, and filed a motion to dismiss the adversary complaint. In February 2021, Cyprus filed a voluntary petition for relief under chapter 11 of the Bankruptcy Code and filed its Disclosure Statement and Plan. The Plan contemplates a settlement with Imerys and talc claimants where Cyprus would make a monetary contribution to a trust established under the Imerys Plan in exchange for an injunction against Talc Claims asserted against it. Cyprus has not yet sought approval of its Disclosure Statement and Plan. Cyprus, along with the TCC and FCR appointed in the Cyprus chapter 11 case, have agreed to participate in the mediation with the Mediation Parties. In October 2021, the Company filed a Notice of Bankruptcy Filing and Stay of Proceedings clarifying that the automatic stay arising upon the filing of the LTL Bankruptcy Case should apply to the Cyprus adversary proceeding. In February 2021, several of the Company’s insurers involved in coverage litigation in New Jersey State Court (the Coverage Action) filed a motion in the Imerys Bankruptcy Court proceeding seeking a determination that the automatic stay does not apply to the Coverage Action and, in the alternative, seeking relief from the automatic stay to allow them to continue to litigate their claims in the Coverage Action. In March 2021, the Company filed a limited response and reservation of rights with respect to the motion. The Court entered an agreed order modifying the stay to allow the litigation in the Coverage Action to continue. In October 2021, LTL filed a Notice of Bankruptcy Filing and Stay of Proceedings clarifying that the automatic stay arising upon the filing of the LTL Bankruptcy Case should apply to the Coverage Action. In March 2022, the New Jersey Bankruptcy Court ruled that the stay applied to the Coverage Action. 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 disclose 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. Plaintiff is seeking damages. In April 2019, the Company moved to dismiss the complaint and briefing on the motion was complete as of August 2019. In December 2019, the Court denied, in part, the motion to dismiss. In March 2020, the Company answered the complaint. In April 2021, briefing on Plaintiffs’ motion for class certification was completed. In July 2021, the Company filed a notice of supplemental authority in opposition to Plaintiff’s motion for class certification, and Plaintiff filed a response. In December 2021, the Company filed a motion to supplement the class certification record, and in January 2022, Plaintiff responded. In March 2022, LTL asked the New Jersey Bankruptcy Court to stay the securities class action. In June 2019, a shareholder filed a complaint initiating a summary proceeding in New Jersey state court for a books and records inspection. In August 2019, Johnson & Johnson responded to the books and records complaint and filed a cross motion to dismiss. In September 2019, Plaintiff replied and the Court heard oral argument. In February 2022, the Court granted Johnson & Johnson’s cross motion to dismiss. In October 2019, December 2019, and January 2020, four shareholders filed four separate derivative lawsuits against Johnson & Johnson as the nominal defendant and its current directors and certain officers 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. In February 2020, the four cases were consolidated into a single action under the caption In re Johnson & Johnson Talc Stockholder Derivative Litigation . In July 2020, a report was delivered to the Company’s Board of Directors by independent counsel retained by the Board to investigate the allegations in the derivative lawsuits and in a series of shareholder letters that the Board received raising similar issues and demanding that suit be brought against certain Directors. Four of the shareholders who sent demands are plaintiffs in th e In re Johnson & Johnson Talc Stockholder Derivative Litigation . The independent counsel recommended that the Company reject the shareholder demands and take the steps that are necessary or appropriate to secure dismissal of the derivative lawsuits. The Board unanimously adopted the recommendations of the independent counsel’s report. In October 2020, the shareholders filed a consolidated complaint, and in January 2021, Johnson & Johnson moved to dismiss the consolidated complaint. In March 2021, Plaintiffs filed a motion for discovery. The Court temporarily terminated Johnson & Johnson’s motion to dismiss pending a decision on Plaintiff’s motion for discovery. In November 2021, at the Court’s request, the parties submitted supplemental briefing on Plaintiff’s motion for discovery. 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. In September 2019, Defendants filed a motion to dismiss. In April 2020, the Court granted Defendants’ motion but granted leave to amend. In June 2020, Plaintiffs filed an amended complaint, and in July 2020, Defendants moved to dismiss the amended complaint. As of October 2020, briefing on Defendants’ motion was complete. In February 2021, the Court granted Defendants’ motion, and granted Plaintiffs leave to amend. In April 2021, Plaintiffs informed the Court that they did not intend to file an amended complaint, and the Court dismissed the case with prejudice. In May 2021, Plaintiffs filed a notice of appeal with the Third Circuit. In July 2021, Plaintiffs filed their opening brief in the Third Circuit and in September 2021, Defendants filed their response brief, and in October 2021, Plaintiffs filed their reply brief. In January 2022, the Third Circuit heard oral argument. A lawsuit was brought against the Company in the Superior Court of California for the County of San Diego alleging violations of California’s Consumer Legal Remedies Act (CLRA) relating to JOHNSON’S Baby Powder. In that lawsuit, the plaintiffs allege that Johnson & Johnson violated the CLRA by failing to provide required Proposition 65 warnings. In July 2019, the Company filed a notice of removal to the United States District Court for the Southern District of California and plaintiffs filed a second amended complaint shortly thereafter. In October 2019, the Company moved to dismiss the second amended complaint for failure to state a claim upon which relief may be granted. In response to those motions, plaintiffs filed a third amended complaint. In December 2019, the Company moved to dismiss the third amended complaint for failure to state a claim upon which relief may be granted. In April 2020, the Court granted the motion to dismiss but granted leave to amend. |
Restructuring
Restructuring | 3 Months Ended |
Apr. 03, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | RESTRUCTURING In the fiscal second quarter of 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. In the fiscal first quarter of 2022, the Company recorded a net pre-tax charge of $72 million, which is included on the following lines of the Consolidated Statement of Earnings, $70 million in restructuring, $16 million in cost of products sold and income of $14 million (from property sales) in other (income) expense, net. Total project costs of approximately $1.8 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 the Global Supply Chain actions to generate approximately $0.6 billion to $0.8 billion in annual pre-tax cost savings that will be substantially delivered by the end of 2022. The Company expects to record pre-tax restructuring charges of approximately $2.1 billion to $2.3 billion by the completion of the program in December 2022. 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 restructuring expenses through the fiscal first quarter of 2022: (Dollars in Millions) Severance Asset Write-offs/Sales Other (2) Total Reserve balance, January 2, 2022 $ 112 — 25 137 Current year activity: Charges — (23) 95 72 Cash settlements (10) 35 (3) (107) (82) Settled non cash — (12) — (12) Reserve balance, April 3, 2022 (1) $ 102 — 13 115 (1) Cash outlays for severance are expected to be substantially paid out by the completion of the program in December 2022. (2) Other includes project expense such as salaries for employees supporting these initiatives and consulting expenses. (3) Represents gain on sale of assets The Company continuously reevaluates its severance reserves related to restructuring and the timing of payments due to the planned release of associates regarding several longer-term projects. The Company believes that the existing severance reserves are sufficient to cover the Global Supply Chain plans given the period over which the actions will take place. The Company will continue to assess and make adjustments as necessary if additional amounts become probable and estimable. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Apr. 03, 2022 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The extent to which COVID-19 impacts the Company’s business and financial results will depend on numerous evolving factors including, but not limited to: the magnitude and duration of COVID-19, the extent to which it will impact worldwide macroeconomic conditions including interest rates, inflation, employment rates and health insurance coverage, the speed of the anticipated recovery, and governmental and business reactions to the pandemic. The Company assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to the Company and the unknown future impacts COVID-19 as of April 3, 2022 and through the date of this report. The accounting matters assessed included, but were not limited to, the Company’s allowance for doubtful accounts and credit losses, inventory and related reserves, accrued rebates and associated reserves, and the carrying value of the goodwill and other long-lived assets along with the Company’s on-going vaccine development and distribution efforts. While there was not a material impact to the Company’s consolidated financial statements as of and for the quarter ended April 3, 2022, the Company’s future assessment of the magnitude and duration of COVID-19, as well as other factors, could result in material impacts to the Company’s consolidated financial statements in future reporting periods. |
New and Recently Adopted Accounting Standards | New Accounting Standards The Company assesses the adoption impacts of recently issued accounting standards by the Financial Accounting Standards Board on the Company's financial statements as well as material updates to previous assessments, if any, from the Company’s Annual Report on Form 10-K for the fiscal year ended January 2, 2022. There were no new material accounting standards issued in the fiscal first quarter of 2022 that impacted the Company. Recently Adopted Accounting Standards There were no new material accounting standards adopted in the fiscal first quarter of 2022. |
Reclassification | Reclassification Certain prior period amounts have been reclassified to conform to current year presentation. |
Cash and Cash Equivalents | 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 to fund current operations and are classified as cash equivalents and current marketable securities. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Apr. 03, 2022 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | (Dollars in Millions) April 3, 2022 January 2, 2022 Raw materials and supplies $ 1,679 1,592 Goods in process 2,629 2,287 Finished goods 6,682 6,508 Total inventories $ 10,990 10,387 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 3 Months Ended |
Apr. 03, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | (Dollars in Millions) April 3, 2022 January 2, 2022 Intangible assets with definite lives: Patents and trademarks — gross $ 37,960 38,572 Less accumulated amortization (20,492) (20,088) Patents and trademarks — net 17,468 18,484 Customer relationships and other intangibles — gross 22,910 23,011 Less accumulated amortization (12,147) (11,925) Customer relationships and other intangibles — net (1) 10,763 11,086 Intangible assets with indefinite lives: Trademarks 6,947 6,985 Purchased in-process research and development (2) 9,242 9,837 Total intangible assets with indefinite lives 16,189 16,822 Total intangible assets — net $ 44,420 46,392 (1) The majority is comprised of customer relationships (2) In the fiscal first quarter of 2022, the Company recorded an intangible asset impairment charge of approximately $0.6 billion related to an in-process research and development asset, bermekimab (JnJ-77474462), an investigational drug for the treatment of Atopic Dermatitis (AD) and Hidradenitis Suppurativa (HS). Additional information regarding efficacy of the AD indication became available which led the Company to the decision to terminate the development of bermekimab for AD. The Company acquired all rights to bermekimab from XBiotech, Inc.in the fiscal year 2020. |
Goodwill | Goodwill as of April 3, 2022 was allocated by segment of business as follows: (Dollars in Millions) Consumer Health Pharmaceutical MedTech Total Goodwill at January 2, 2022 $ 9,810 10,580 14,856 35,246 Goodwill, related to acquisitions — — 73 73 Currency translation/Other (195) (170) (19) (384) Goodwill at April 3, 2022 $ 9,615 10,410 14,910 34,935 |
Intangible Asset Amortization Expense | The estimated amortization expense for approved products, before tax, for the five succeeding years is approximately: (Dollars in Millions) 2022 2023 2024 2025 2026 $4,600 4,600 4,400 3,600 3,000 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Apr. 03, 2022 | |
Fair Value Disclosures [Abstract] | |
Summary of Derivative Activity | The following table is a summary of the activity related to derivatives and hedges for the fiscal first quarters ended in 2022 and 2021, net of tax: April 3, 2022 April 4, 2021 (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 $ — — — (531) — — — — — — Derivatives designated as hedging instruments — — — 531 — — — — — — 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 — — — 45 — — — — 40 — Amount of gain or (loss) recognized in AOCI — — — 45 — — — — 40 — Gain (Loss) on cash flow hedging relationship: Forward foreign exchange contracts: Amount of gain or (loss) reclassified from AOCI into income (17) (52) 23 — (18) 17 34 (113) — 3 Amount of gain or (loss) recognized in AOCI 22 (94) 33 — (73) (3) (193) (76) — 17 Cross currency interest rate swaps contracts: Amount of gain or (loss) reclassified from AOCI into income — — — 120 — — — 92 — Amount of gain or (loss) recognized in AOCI $ — — — (128) — — — — (307) — The following table is the effect of net investment hedges for the fiscal first quarters ended in 2022 and 2021: Gain/(Loss) Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income Into Income Gain/(Loss) Reclassified From (Dollars in Millions) April 3, 2022 April 4, 2021 April 3, 2022 April 4, 2021 Debt $ 68 209 Interest (income) expense — — Cross Currency interest rate swaps $ 560 361 Interest (income) expense — — |
Schedule of Derivative Financial Instruments and Classification on Consolidated Balance Sheet | As of April 3, 2022, and January 2, 2022, 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 Gain/ (Loss) Included in the Carrying Amount of the Hedged Liability (Dollars in Millions) April 3, 2022 January 2, 2022 April 3, 2022 January 2, 2022 Long-term Debt 9,313 9,793 (694) (142) |
Schedule of Effect of Derivatives not Designated as Hedging Instruments | The following table is the effect of derivatives not designated as hedging instruments for the fiscal first quarters ended 2022 and 2021: Gain/(Loss) (Dollars in Millions) Location of Gain /(Loss) Recognized in Income on Derivative Fiscal First Quarter Ended Derivatives Not Designated as Hedging Instruments April 3, 2022 April 4, 2021 Foreign Exchange Contracts Other (income) expense $ 29 (16) |
Summary of Activity Related to Equity Investments | The following table is a summary of the activity related to equity investments: (Dollars in Millions) January 2, 2022 April 3, 2022 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 $ 1,884 (402) (30) 1,452 1,452 Equity Investments without readily determinable value $ 500 (5) 10 505 505 (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 April 3, 2022 and January 2, 2022 were as follows: April 3, 2022 January 2, 2022 (Dollars in Millions) Level 1 Level 2 Level 3 Total Total (1) Derivatives designated as hedging instruments: Assets: Forward foreign exchange contracts $ — 742 — 742 540 Interest rate contracts (2) — 975 — 975 796 Total — 1,717 — 1,717 1,336 Liabilities: Forward foreign exchange contracts — 1,058 — 1,058 881 Interest rate contracts (2) — 1,652 — 1,652 979 Total — 2,710 — 2,710 1,860 Derivatives not designated as hedging instruments: Assets: Forward foreign exchange contracts — 36 — 36 24 Liabilities: Forward foreign exchange contracts — 68 — 68 28 Other Investments: Equity investments (3) 1,452 — — 1,452 1,884 Debt securities (4) — 19,583 — 19,583 19,727 Other Liabilities Contingent consideration (5) $ — — 486 486 533 Gross to Net Derivative Reconciliation April 3, 2022 January 2, 2022 (Dollars in Millions) Total Gross Assets $ 1,753 1,360 Credit Support Agreement (CSA) (1,655) (1,285) Total Net Asset 98 75 Total Gross Liabilities 2,778 1,888 Credit Support Agreement (CSA) (2,709) (1,855) Total Net Liabilities $ 69 33 Summarized information about changes in liabilities for contingent consideration is as follows: April 3, 2022 April 4, 2021 (Dollars in Millions) Beginning Balance $ 533 $ 633 Changes in estimated fair value (6) (47) 15 Additions — — Payments — (48) Ending Balance $ 486 $ 600 (1) 2021 assets and liabilities are all classified as Level 2 with the exception of equity investments of $1,884 million, which are classified as Level 1 and contingent consideration of $533 million, classified as Level 3. (2) Includes cross currency interest rate swaps and interest rate swaps. (3) Classified as non-current other assets. (4) Classified within cash equivalents and current marketable securities. (5) Includes $469 million and $520 million, classified as non-current other liabilities as of April 3, 2022 and January 2, 2022, respectively. Includes $17 million and $13 million classified as current liabilities as of April 3, 2022 and January 2, 2022, respectively. |
Marketable Securities | The Company's cash, cash equivalents and current marketable securities as of April 3, 2022 comprised: (Dollars in Millions) Carrying Amount Gain/( Loss) Estimated Fair Value Cash & Cash Equivalents Current Marketable Securities Cash $ 3,128 — 3,128 3,128 — Non-U.S. sovereign securities (1) 329 — 329 — 329 U.S. reverse repurchase agreements 1,449 — 1,449 1,449 — Corporate debt securities (1) 3,557 (6) 3,551 540 3,017 Money market funds 1,579 — 1,579 1,579 — Time deposits (1) 763 — 763 763 — Subtotal 10,805 (6) 10,799 7,459 3,346 Unrealized Loss U.S. Gov't securities 19,354 (19) 19,335 2,968 16,367 Other sovereign securities 3 — 3 — 3 Corporate debt securities 246 (1) 245 36 209 Subtotal available for sale debt (2) $ 19,603 (20) 19,583 3,004 16,579 Total cash, cash equivalents and current marketable securities $ 30,408 (26) 30,382 10,463 19,925 (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 as of April 3, 2022 are as follows: (Dollars in Millions) Cost Basis Fair Value Due within one year $ 19,585 19,564 Due after one year through five years 19 19 Due after five years through ten years — — Total debt securities $ 19,604 19,583 |
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 April 3, 2022: (Dollars in Millions) Carrying Amount Estimated Fair Value Financial Liabilities Current Debt $ 4,297 4,298 Non-Current Debt 6.73% Debentures due 2023 250 266 3.375% Notes due 2023 802 820 0.650% Notes due 2024 (750MM Euro 1.1311) 824 829 5.50% Notes due 2024 (500 MM GBP 1.3485) 654 713 2.625% Notes due 2025 749 762 0.55% Notes due 2025 950 886 2.45% Notes due 2026 1,995 1,981 2.95% Notes due 2027 930 934 0.95% Notes due 2027 1,436 1,307 2.90% Notes due 2028 1,496 1,489 1.150% Notes due 2028 (750MM Euro 1.1311) 826 829 6.95% Notes due 2029 298 379 1.30% Notes due 2030 1,672 1,486 4.95% Debentures due 2033 498 590 4.375% Notes due 2033 855 959 1.650% Notes due 2035 (1.5B Euro 1.1311) 1,654 1,687 3.55% Notes due 2036 917 947 5.95% Notes due 2037 993 1,288 3.625% Notes due 2037 1,416 1,463 3.40% Notes due 2038 992 999 5.85% Debentures due 2038 697 901 4.50% Debentures due 2040 540 617 2.10% Notes due 2040 914 777 4.85% Notes due 2041 297 342 4.50% Notes due 2043 496 565 3.70% Notes due 2046 1,975 2,097 3.75% Notes due 2047 906 969 3.50% Notes due 2048 743 766 2.25% Notes due 2050 914 759 2.45% Notes due 2060 1,155 942 Other 7 7 Total Non-Current Debt $ 28,851 29,356 |
Pensions and Other Benefit Pl_2
Pensions and Other Benefit Plans (Tables) | 3 Months Ended |
Apr. 03, 2022 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost | Net periodic benefit costs for the Company’s defined benefit retirement plans and other benefit plans include the following components: Fiscal First Quarter Ended Retirement Plans Other Benefit Plans (Dollars in Millions) April 3, 2022 April 4, 2021 April 3, 2022 April 4, 2021 Service cost $ 321 353 80 77 Interest cost 230 193 26 20 Expected return on plan assets (699) (680) (2) (2) Amortization of prior service cost/(credit) (46) (45) (1) (8) Recognized actuarial losses 162 314 30 38 Curtailments and settlements 1 1 — — Net periodic benefit cost/(credit) $ (31) 136 133 125 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Apr. 03, 2022 | |
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) January 2, 2022 $ (10,017) (3) (2,702) (336) (13,058) Net change (554) (13) 164 (296) (699) April 3, 2022 $ (10,571) (16) (2,538) (632) (13,757) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Apr. 03, 2022 | |
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: Fiscal First Quarter Ended (Shares in Millions) April 3, 2022 April 4, 2021 Basic net earnings per share $ 1.96 2.35 Average shares outstanding — basic 2,629.2 2,631.6 Potential shares exercisable under stock option plans 140.1 128.4 Less: shares which could be repurchased under treasury stock method (102.8) (87.3) Average shares outstanding — diluted 2,666.5 2,672.7 Diluted net earnings per share $ 1.93 2.32 |
Segments of Business and Geog_2
Segments of Business and Geographic Areas (Tables) | 3 Months Ended |
Apr. 03, 2022 | |
Segment Reporting [Abstract] | |
Sales By Segment Of Business | SALES BY SEGMENT OF BUSINESS Fiscal First Quarter Ended (Dollars in Millions) April 3, April 4, Percent CONSUMER HEALTH OTC (1) U.S. $ 670 599 11.8 % International 791 673 17.5 Worldwide 1,461 1,273 14.8 Skin Health/Beauty U.S. 544 634 (14.2) International 468 529 (11.6) Worldwide 1,012 1,163 (13.0) Oral Care U.S. 143 163 (12.6) International 223 254 (12.0) Worldwide 366 417 (12.2) Baby Care U.S. 85 96 (11.5) International 270 293 (7.7) Worldwide 355 389 (8.6) Women's Health U.S. 3 3 7.2 International 224 219 2.5 Worldwide 228 222 2.6 Wound Care/Other U.S. 112 115 (3.3) International 52 61 (15.3) Worldwide 164 177 (7.4) TOTAL CONSUMER HEALTH U.S. 1,557 1,611 (3.4) International 2,029 2,030 0.0 Worldwide 3,586 3,641 (1.5) PHARMACEUTICAL Immunology U.S. 2,501 2,413 3.7 International 1,617 1,501 7.7 Worldwide 4,119 3,914 5.2 REMICADE U.S. 358 489 (26.8) U.S. Exports 80 57 40.5 International 225 232 (2.6) Worldwide 663 777 (14.7) SIMPONI / SIMPONI ARIA U.S. 287 255 12.5 International 283 307 (7.6) Worldwide 571 562 1.5 STELARA U.S. 1,379 1,331 3.6 International 909 817 11.2 Worldwide 2,288 2,148 6.5 TREMFYA U.S. 391 274 42.7 International 199 143 38.8 Worldwide 590 418 41.3 OTHER IMMUNOLOGY U.S. 6 7 (3.2) International 0 2 * Worldwide 6 8 (22.0) Infectious Diseases U.S. 461 512 (10.0) International 836 485 72.3 Worldwide 1,297 998 30.0 COVID-19 VACCINE U.S. 75 100 (24.9) International 382 0 * Worldwide 457 100 * EDURANT / rilpivirine U.S. 9 10 (12.6) International 239 233 2.5 Worldwide 248 243 1.8 PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA U.S. 369 380 (3.1) International 132 166 (20.3) Worldwide 501 546 (8.3) OTHER INFECTIOUS DISEASES (1) U.S. 8 21 (62.5) International 83 87 (3.8) Worldwide 91 108 (15.3) Neuroscience U.S. 843 771 9.3 International 898 943 (4.8) Worldwide 1,741 1,715 1.5 CONCERTA / methylphenidate U.S. 35 47 (26.5) International 122 123 (1.3) Worldwide 157 171 (8.3) INVEGA SUSTENNA / XEPLION / INVEGA TRINZA / TREVICTA U.S. 661 589 12.2 International 387 376 3.0 Worldwide 1,048 965 8.6 RISPERDAL CONSTA U.S. 63 67 (6.4) International 66 89 (26.1) Worldwide 129 157 (17.6) OTHER NEUROSCIENCE (1) U.S. 84 67 25.5 International 323 355 (8.9) Worldwide 408 422 (3.5) Oncology U.S. 1,582 1,377 14.9 International 2,369 2,193 8.0 Worldwide 3,950 3,570 10.6 DARZALEX U.S. 953 691 37.9 International 903 674 34.0 Worldwide 1,856 1,365 36.0 ERLEADA U.S. 206 171 20.3 International 194 90 * Worldwide 400 261 53.0 IMBRUVICA U.S. 370 444 (16.7) International 668 680 (1.8) Worldwide 1,038 1,125 (7.7) ZYTIGA / abiraterone acetate U.S. 19 50 (62.1) International 520 588 (11.6) Worldwide 539 638 (15.6) OTHER ONCOLOGY U.S. 34 21 63.1 International 84 161 (47.7) Worldwide 118 182 (35.1) Pulmonary Hypertension U.S. 572 573 (0.2) International 279 288 (2.9) Worldwide 852 861 (1.1) OPSUMIT U.S. 273 272 0.5 International 170 179 (4.8) Worldwide 443 450 (1.6) UPTRAVI U.S. 269 259 3.9 International 56 46 20.9 Worldwide 325 305 6.5 OTHER PULMONARY HYPERTENSION U.S. 30 42 (29.0) International 53 63 (15.2) Worldwide 83 105 (20.8) Cardiovascular / Metabolism / Other U.S. 672 799 (15.8) International 238 245 (3.0) Worldwide 910 1,044 (12.8) XARELTO U.S. 508 589 (13.8) International — — — Worldwide 508 589 (13.8) INVOKANA / INVOKAMET U.S. 60 87 (30.7) International 68 63 7.5 Worldwide 128 150 (14.6) OTHER (1,2) U.S. 104 122 (14.9) International 170 182 (6.6) Worldwide 274 305 (10.0) TOTAL PHARMACEUTICAL U.S. 6,632 6,446 2.9 International 6,237 5,655 10.3 Worldwide 12,869 12,101 6.3 MEDTECH (3) Interventional Solutions U.S. 494 434 13.8 International 597 514 16.2 Worldwide 1,092 949 15.1 Orthopaedics U.S. 1,289 1,249 3.2 International 899 864 4.1 Worldwide 2,188 2,113 3.5 HIPS U.S. 225 209 7.3 International 164 146 12.2 Worldwide 389 356 9.3 KNEES U.S. 201 185 8.6 International 138 132 4.1 Worldwide 339 317 6.7 TRAUMA U.S. 475 450 5.5 International 273 282 (3.3) Worldwide 748 733 2.1 SPINE, SPORTS & OTHER U.S. 387 404 (4.1) International 324 303 7.0 Worldwide 712 707 0.6 Surgery U.S. 921 898 2.5 International 1,513 1,474 2.7 Worldwide 2,434 2,372 2.6 ADVANCED U.S. 417 405 3.0 International 729 713 2.2 Worldwide 1,146 1,118 2.5 GENERAL U.S. 504 493 2.1 International 784 761 3.1 Worldwide 1,288 1,254 2.7 Vision U.S. 521 472 10.4 International 736 673 9.4 Worldwide 1,257 1,145 9.8 CONTACT LENSES / OTHER U.S. 400 371 7.7 International 511 486 5.1 Worldwide 910 857 6.2 SURGICAL U.S. 121 101 20.2 International 226 187 20.5 Worldwide 347 288 20.4 TOTAL MEDTECH U.S. 3,225 3,054 5.6 International 3,746 3,525 6.3 Worldwide 6,971 6,579 5.9 WORLDWIDE U.S. 11,414 11,111 2.7 International 12,012 11,210 7.2 Worldwide $ 23,426 22,321 5.0 % *Percentage greater than 100% or not meaningful (1) In the fiscal first quarter of 2021, approximately $0.1 billion of certain international OTC products, primarily in China, were reclassified from the Pharmaceutical segment to the Consumer Health segment based on operational changes (2) Inclusive of PROCRIT / EPREX which was previously disclosed separately (3) Previously referred to as Medical Devices |
Operating Profit by Segment of Business | EARNINGS BEFORE PROVISION FOR TAXES BY SEGMENT* Fiscal First Quarter Ended (Dollars in Millions) April 3, April 4, Percent Consumer Health (1) $ 686 842 (18.5)% Pharmaceutical (2) 3,924 5,169 (24.1) MedTech (3) 1,477 1,629 (9.3) Segment earnings before provision for taxes 6,087 7,640 (20.3) Less: Expense not allocated to segments (4) 123 211 Less: Consumer Health separation costs 102 — Worldwide income before tax $ 5,862 7,429 (21.1)% *Fiscal first quarter 2021 earnings before provision for taxes has been reclassified as certain international OTC products, primarily in China, were reclassified from the Pharmaceutical segment to the Consumer Health segment based on operational changes (1) Consumer Health includes: • Intangible amortization expense of $0.1 billion in both the fiscal first quarter of 2022 and 2021 (2) Pharmaceutical includes: • Divestiture gains of $0.6 billion in the fiscal first quarter of 2021 related to two brands outside the U.S. • Intangible amortization expense of $0.8 billion and $0.9 billion in the fiscal first quarter of 2022 and 2021, respectively • In the fiscal first quarter of 2022, the Company recorded an intangible asset impairment charge of approximately $0.6 billion related to an in-process research and development asset, bermekimab (JnJ-77474462), an investigational drug for the treatment of Atopic Dermatitis (AD) and Hidradenitis Suppurativa (HS). Additional information regarding efficacy of the AD indication became available which led the Company to the decision to terminate the development of bermekimab for AD. • A loss of $0.4 billion related to the change in the fair value of securities in the fiscal first quarter of 2022 In fiscal 2021 and 2020, the Company entered into a series of contract manufacturing arrangements for vaccine production with third party contract manufacturing organizations. These arrangements provide the Company with future supplemental commercial capacity for vaccine production and potentially transferable rights to such production if capacity is not required. Amounts paid for services to be delivered and contractually obligated to be paid to these contract manufacturing organizations of approximately $0.9 billion are reflected in the prepaid expenses and other, other assets, accrued liabilities and other liabilities accounts in the Company's consolidated balance sheet upon execution of each agreement. Additionally, the Company has entered into certain vaccine development cost sharing arrangements with government related organizations. The Company continues to evaluate the global demand for the COVID-19 vaccine and its related supply. (3) MedTech includes: • A restructuring related charge of $0.1 billion in both the fiscal first quarter of 2022 and 2021 • Intangible amortization expense of $0.3 billion in both the fiscal first quarter of 2022 and 2021 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | SALES BY GEOGRAPHIC AREA Fiscal First Quarter Ended (Dollars in Millions) April 3, 2022 April 4, 2021 Percent United States $ 11,414 11,111 2.7 % Europe 6,024 5,414 11.3 Western Hemisphere, excluding U.S. 1,482 1,424 4.1 Asia-Pacific, Africa 4,506 4,372 3.1 Total $ 23,426 22,321 5.0 % |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Apr. 03, 2022 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve | The following table summarizes the severance related reserves and the associated restructuring expenses through the fiscal first quarter of 2022: (Dollars in Millions) Severance Asset Write-offs/Sales Other (2) Total Reserve balance, January 2, 2022 $ 112 — 25 137 Current year activity: Charges — (23) 95 72 Cash settlements (10) 35 (3) (107) (82) Settled non cash — (12) — (12) Reserve balance, April 3, 2022 (1) $ 102 — 13 115 (1) Cash outlays for severance are expected to be substantially paid out by the completion of the program in December 2022. (2) Other includes project expense such as salaries for employees supporting these initiatives and consulting expenses. (3) Represents gain on sale of assets |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Apr. 03, 2022 | Jan. 02, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 1,679 | $ 1,592 |
Goods in process | 2,629 | 2,287 |
Finished goods | 6,682 | 6,508 |
Total inventories | $ 10,990 | $ 10,387 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Jan. 02, 2022 | |
Intangible assets with indefinite lives: | ||
Indefinite-Lived Intangible Assets | $ 16,189 | $ 16,822 |
Total intangible assets - net | 44,420 | 46,392 |
Trademarks | ||
Intangible assets with indefinite lives: | ||
Indefinite-Lived Intangible Assets | 6,947 | 6,985 |
Purchased In-Process Research And Development | ||
Intangible assets with indefinite lives: | ||
Indefinite-Lived Intangible Assets | 9,242 | 9,837 |
Patents And Trademarks | ||
Intangible assets with definite lives: | ||
Finite-Lived Intangible Assets, Gross | 37,960 | 38,572 |
Less accumulated amortization | (20,492) | (20,088) |
Finite-Lived Intangible Assets, Net | 17,468 | 18,484 |
Customer relationships and other intangible assets | ||
Intangible assets with definite lives: | ||
Finite-Lived Intangible Assets, Gross | 22,910 | 23,011 |
Less accumulated amortization | (12,147) | (11,925) |
Finite-Lived Intangible Assets, Net | 10,763 | $ 11,086 |
In-process research and development | bermekimab | ||
Intangible assets with indefinite lives: | ||
Impairment of intangible assets | $ 600 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill - Goodwill By Segment (Details) $ in Millions | 3 Months Ended |
Apr. 03, 2022USD ($) | |
Goodwill [Roll Forward] | |
Goodwill Beginning of Period | $ 35,246 |
Goodwill, related to acquisitions | 73 |
Currency translation/Other | (384) |
Goodwill End of Period | 34,935 |
CONSUMER HEALTH | |
Goodwill [Roll Forward] | |
Goodwill Beginning of Period | 9,810 |
Goodwill, related to acquisitions | 0 |
Currency translation/Other | (195) |
Goodwill End of Period | 9,615 |
PHARMACEUTICAL | |
Goodwill [Roll Forward] | |
Goodwill Beginning of Period | 10,580 |
Goodwill, related to acquisitions | 0 |
Currency translation/Other | (170) |
Goodwill End of Period | 10,410 |
MedTech | |
Goodwill [Roll Forward] | |
Goodwill Beginning of Period | 14,856 |
Goodwill, related to acquisitions | 73 |
Currency translation/Other | (19) |
Goodwill End of Period | $ 14,910 |
Intangible Assets and Goodwil_4
Intangible Assets and Goodwill - Narrative (Details) - USD ($) $ in Billions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization expense of amortizable intangible assets | $ 1.1 | $ 1.2 |
Patents And Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
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, Weighted-Average Useful Life | 21 years |
Intangible Assets and Goodwil_5
Intangible Assets and Goodwill - Intangible Asset Amortization Expense (Details) $ in Millions | Apr. 03, 2022USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2022 | $ 4,600 |
2023 | 4,600 |
2024 | 4,400 |
2025 | 3,600 |
2026 | $ 3,000 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Apr. 03, 2022 | Jan. 02, 2022 | |
Derivative [Line Items] | ||
Accumulated other comprehensive income on derivatives, after tax | $ (632) | |
Reclassification of foreign exchange contracts into earnings, period | next 12 months | |
Maximum length of time for hedge exposure | 18 months | |
Weighted average interest rate on non-current debt | 3.04% | |
Excess of the estimated fair value over the carrying value of debt | $ 3,200 | |
Current Debt | $ 4,297 | 3,766 |
Commercial Paper | ||
Derivative [Line Items] | ||
Current Debt | $ 3,800 | |
Weighted average interest rate | 0.37% | |
Term | 3 months | |
Forward foreign exchange contracts | ||
Derivative [Line Items] | ||
Collateral already posted, aggregate fair value | $ 1,100 | |
Derivative, notional amount | 42,500 | 45,800 |
Cross currency interest rate swaps | ||
Derivative [Line Items] | ||
Derivative, notional amount | 37,400 | 37,400 |
Interest Rate Swap | ||
Derivative [Line Items] | ||
Derivative, notional amount | 10,000 | $ 10,000 |
Equity Investments without readily determinable value | Equity Securities | ||
Derivative [Line Items] | ||
Equity, fair value adjustment, impairment loss | (5) | |
Changes in Fair Value Reflected in Net Income | $ (5) |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Derivative Activity (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Other (income) expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) reclassified from AOCI into income | $ 0 | $ 0 |
Cross currency interest rate swaps | Other (income) expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) reclassified from AOCI into income | 0 | 0 |
Fair Value Hedging | Interest Rate Swap | Sales to customers | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing | 0 | 0 |
Amount of gain or (loss) recognized in AOCI | 0 | 0 |
Fair Value Hedging | Interest Rate Swap | Cost of products sold | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing | 0 | 0 |
Amount of gain or (loss) recognized in AOCI | 0 | 0 |
Fair Value Hedging | Interest Rate Swap | Research and Development Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing | 0 | 0 |
Amount of gain or (loss) recognized in AOCI | 0 | 0 |
Fair Value Hedging | Interest Rate Swap | Other (income) expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing | 0 | 0 |
Amount of gain or (loss) recognized in AOCI | 0 | 0 |
Fair Value Hedging | Interest Rate Swap | Interest (income)/Interest expense, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing | (531) | 0 |
Amount of gain or (loss) recognized in AOCI | 531 | 0 |
Net Investment Hedging [Member] | Net Investment Hedging [Member] | Sales to customers | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing | 0 | 0 |
Amount of gain or (loss) recognized in AOCI | 0 | 0 |
Net Investment Hedging [Member] | Net Investment Hedging [Member] | Cost of products sold | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing | 0 | 0 |
Amount of gain or (loss) recognized in AOCI | 0 | 0 |
Net Investment Hedging [Member] | Net Investment Hedging [Member] | Research and Development Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing | 0 | 0 |
Amount of gain or (loss) recognized in AOCI | 0 | 0 |
Net Investment Hedging [Member] | Net Investment Hedging [Member] | Other (income) expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing | 0 | 0 |
Amount of gain or (loss) recognized in AOCI | 0 | 0 |
Net Investment Hedging [Member] | Net Investment Hedging [Member] | Interest (income)/Interest expense, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing | 45 | 40 |
Amount of gain or (loss) recognized in AOCI | 45 | 40 |
Cash Flow Hedging | Forward foreign exchange contracts | Sales to customers | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) recognized in AOCI | 22 | (3) |
Amount of gain or (loss) reclassified from AOCI into income | (17) | 17 |
Cash Flow Hedging | Forward foreign exchange contracts | Cost of products sold | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) recognized in AOCI | (94) | (193) |
Amount of gain or (loss) reclassified from AOCI into income | (52) | 34 |
Cash Flow Hedging | Forward foreign exchange contracts | Research and Development Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) recognized in AOCI | 33 | (76) |
Amount of gain or (loss) reclassified from AOCI into income | 23 | (113) |
Cash Flow Hedging | Forward foreign exchange contracts | Other (income) expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) recognized in AOCI | (73) | 17 |
Amount of gain or (loss) reclassified from AOCI into income | (18) | 3 |
Cash Flow Hedging | Forward foreign exchange contracts | Interest (income)/Interest expense, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) recognized in AOCI | 0 | 0 |
Amount of gain or (loss) reclassified from AOCI into income | 0 | 0 |
Cash Flow Hedging | Cross currency interest rate swaps | Sales to customers | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) recognized in AOCI | 0 | 0 |
Amount of gain or (loss) reclassified from AOCI into income | 0 | 0 |
Cash Flow Hedging | Cross currency interest rate swaps | Cost of products sold | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) recognized in AOCI | 0 | 0 |
Amount of gain or (loss) reclassified from AOCI into income | 0 | |
Cash Flow Hedging | Cross currency interest rate swaps | Research and Development Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) recognized in AOCI | 0 | 0 |
Amount of gain or (loss) reclassified from AOCI into income | 0 | 0 |
Cash Flow Hedging | Cross currency interest rate swaps | Other (income) expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) recognized in AOCI | 0 | 0 |
Amount of gain or (loss) reclassified from AOCI into income | 0 | 0 |
Cash Flow Hedging | Cross currency interest rate swaps | Interest (income)/Interest expense, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) recognized in AOCI | (128) | (307) |
Amount of gain or (loss) reclassified from AOCI into income | $ 120 | $ 92 |
Fair Value Measurements - Deriv
Fair Value Measurements - Derivatives, Balance Sheet Location (Details) - USD ($) $ in Millions | Apr. 03, 2022 | Jan. 02, 2022 |
Derivative [Line Items] | ||
Carrying Amount of the Hedged Liability | $ 2,778 | $ 1,888 |
Long-term Debt | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Carrying Amount of the Hedged Liability | 9,313 | 9,793 |
Cumulative Amount of Fair Value Hedging Gain/ (Loss) Included in the Carrying Amount of the Hedged Liability | $ (694) | $ (142) |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Effect of Derivatives not Designated as Hedging Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Not Designated as Hedging Instrument | Forward foreign exchange contracts | Other (income) expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain/(Loss) Recognized In Income on Derivative | $ 29 | $ (16) |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Effect of Net Investment Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain/(Loss) Recognized In Accumulated OCI | $ 68 | $ 209 |
Other Income Expense Net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) reclassified from AOCI into income | 0 | 0 |
Cross Currency Interest Rate Contract | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain/(Loss) Recognized In Accumulated OCI | 560 | 361 |
Cross Currency Interest Rate Contract | Other Income Expense Net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) reclassified from AOCI into income | $ 0 | $ 0 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Activity Related to Equity Investments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Jan. 02, 2022 | |
Equity Investment [Roll Forward] | ||
Non Current Other Assets | $ 9,939 | $ 10,216 |
Equity Securities | Equity Investments with readily determinable value | ||
Equity Investment [Roll Forward] | ||
Carrying value, beginning of period | 1,884 | |
Changes in Fair Value Reflected in Net Income | (402) | |
Sales/ Purchases/Other | (30) | |
Carrying value, end of period | 1,452 | |
Non Current Other Assets | 1,452 | |
Equity Securities | Equity Investments without readily determinable value | ||
Equity Investment [Roll Forward] | ||
Carrying value, beginning of period | 500 | |
Changes in Fair Value Reflected in Net Income | (5) | |
Sales/ Purchases/Other | 10 | |
Carrying value, end of period | 505 | |
Non Current Other Assets | $ 505 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities at Fair Value (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 03, 2022 | Apr. 04, 2021 | Jan. 02, 2022 | |
Financial assets and liabilities at fair value | |||
Derivatives designated as hedging instruments : Assets | $ 1,717 | ||
Derivatives designated as hedging instruments : Liabilities | 2,710 | ||
Available-for-sale Securities, Equity Securities | 1,452 | $ 1,884 | |
Available-for-sale Securities | 19,583 | 19,727 | |
Contingent consideration | 486 | 533 | |
Total Gross Assets | 1,753 | 1,360 | |
Credit Support Agreement (CSA) | (1,655) | (1,285) | |
Total Net Asset | 98 | 75 | |
Total Gross Liabilities | 2,778 | 1,888 | |
Credit Support Agreement (CSA) | (2,709) | (1,855) | |
Total Net Liabilities | 69 | 33 | |
Beginning Balance | 533 | $ 633 | |
Changes in estimated fair value (6) | (47) | 15 | |
Additions | 0 | 0 | |
Payments | 0 | (48) | |
Ending Balance | 486 | $ 600 | |
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 | 1,452 | 1,884 | |
Available-for-sale Securities | 0 | ||
Contingent consideration | 0 | ||
Significant other observable inputs Level 2 | |||
Financial assets and liabilities at fair value | |||
Derivatives designated as hedging instruments : Assets | 1,717 | 1,336 | |
Derivatives designated as hedging instruments : Liabilities | 2,710 | 1,860 | |
Available-for-sale Securities, Equity Securities | 0 | ||
Available-for-sale Securities | 19,583 | ||
Contingent consideration | 0 | ||
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 | ||
Contingent consideration | 486 | 533 | |
Interest Rate Contract | |||
Financial assets and liabilities at fair value | |||
Derivatives designated as hedging instruments : Assets | 975 | ||
Derivatives designated as hedging instruments : Liabilities | 1,652 | ||
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 | 975 | 796 | |
Derivatives designated as hedging instruments : Liabilities | 1,652 | 979 | |
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 | ||
Forward foreign exchange contracts | |||
Financial assets and liabilities at fair value | |||
Derivatives designated as hedging instruments : Assets | 742 | ||
Derivatives designated as hedging instruments : Liabilities | 1,058 | ||
Derivatives not designated as hedging instruments : Assets | 36 | ||
Derivatives not designated as hedging instruments : Liabilities | 68 | ||
Forward 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 | ||
Forward foreign exchange contracts | Significant other observable inputs Level 2 | |||
Financial assets and liabilities at fair value | |||
Derivatives designated as hedging instruments : Assets | 742 | 540 | |
Derivatives designated as hedging instruments : Liabilities | 1,058 | 881 | |
Derivatives not designated as hedging instruments : Assets | 36 | 24 | |
Derivatives not designated as hedging instruments : Liabilities | 68 | 28 | |
Forward 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 | ||
Other Noncurrent Liabilities | Auris Health | |||
Financial assets and liabilities at fair value | |||
Contingent consideration | 469 | 520 | |
Other Current Liabilities | |||
Financial assets and liabilities at fair value | |||
Contingent consideration | $ 17 | $ 13 |
Fair Value Measurements - Cash,
Fair Value Measurements - Cash, Cash Equivalents and Marketable Securities (Details) - USD ($) $ in Millions | Apr. 03, 2022 | Jan. 02, 2022 |
Debt Securities, Available-for-sale [Abstract] | ||
Available-for-sale Securities - Estimated Fair Value | $ 19,583 | $ 19,727 |
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Cash and Cash Equivalents | 10,463 | 14,487 |
Marketable securities | 19,925 | $ 17,121 |
Total cash, cash equivalents and current marketable securities, Carrying Amount | 30,408 | |
Total cash, cash equivalents and current marketable securities, Unrecognized Loss | (26) | |
Total cash, cash equivalents and current marketable securities, Estimated Fair Value | 30,382 | |
Held-to-maturity Securities | ||
Debt Securities, Held-to-maturity [Abstract] | ||
Held-to-maturity Securities - Carrying Amount | 10,805 | |
Held-to-maturity Securities, Unrecognized Loss | (6) | |
Held-to-maturity Securities - Estimated Fair Value | 10,799 | |
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Cash and Cash Equivalents | 7,459 | |
Marketable securities | 3,346 | |
Held-to-maturity Securities | Cash | ||
Debt Securities, Held-to-maturity [Abstract] | ||
Held-to-maturity Securities - Carrying Amount | 3,128 | |
Held-to-maturity Securities, Unrecognized Loss | 0 | |
Held-to-maturity Securities - Estimated Fair Value | 3,128 | |
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Cash and Cash Equivalents | 3,128 | |
Marketable securities | 0 | |
Held-to-maturity Securities | Non-U.S. sovereign securities(1) | ||
Debt Securities, Held-to-maturity [Abstract] | ||
Held-to-maturity Securities - Carrying Amount | 329 | |
Held-to-maturity Securities, Unrecognized Loss | 0 | |
Held-to-maturity Securities - Estimated Fair Value | 329 | |
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Cash and Cash Equivalents | 0 | |
Marketable securities | 329 | |
Held-to-maturity Securities | U.S. reverse repurchase agreements | ||
Debt Securities, Held-to-maturity [Abstract] | ||
Held-to-maturity Securities - Carrying Amount | 1,449 | |
Held-to-maturity Securities, Unrecognized Loss | 0 | |
Held-to-maturity Securities - Estimated Fair Value | 1,449 | |
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Cash and Cash Equivalents | 1,449 | |
Marketable securities | 0 | |
Held-to-maturity Securities | Corporate debt securities(1) | ||
Debt Securities, Held-to-maturity [Abstract] | ||
Held-to-maturity Securities - Carrying Amount | 3,557 | |
Held-to-maturity Securities, Unrecognized Loss | (6) | |
Held-to-maturity Securities - Estimated Fair Value | 3,551 | |
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Cash and Cash Equivalents | 540 | |
Marketable securities | 3,017 | |
Held-to-maturity Securities | Money market funds | ||
Debt Securities, Held-to-maturity [Abstract] | ||
Held-to-maturity Securities - Carrying Amount | 1,579 | |
Held-to-maturity Securities, Unrecognized Loss | 0 | |
Held-to-maturity Securities - Estimated Fair Value | 1,579 | |
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Cash and Cash Equivalents | 1,579 | |
Marketable securities | 0 | |
Held-to-maturity Securities | Time deposits(1) | ||
Debt Securities, Held-to-maturity [Abstract] | ||
Held-to-maturity Securities - Carrying Amount | 763 | |
Held-to-maturity Securities, Unrecognized Loss | 0 | |
Held-to-maturity Securities - Estimated Fair Value | 763 | |
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Cash and Cash Equivalents | 763 | |
Marketable securities | 0 | |
Available-for-sale Securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Available-for-sale Securities - Carrying Amount | 19,603 | |
Available-for-sale Securities, Unrecognized Loss | (20) | |
Available-for-sale Securities - Estimated Fair Value | 19,583 | |
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Cash and Cash Equivalents | 3,004 | |
Marketable securities | 16,579 | |
Available-for-sale Securities | Non-U.S. sovereign securities(1) | ||
Debt Securities, Available-for-sale [Abstract] | ||
Available-for-sale Securities - Carrying Amount | 3 | |
Available-for-sale Securities, Unrecognized Loss | 0 | |
Available-for-sale Securities - Estimated Fair Value | 3 | |
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Cash and Cash Equivalents | 0 | |
Marketable securities | 3 | |
Available-for-sale Securities | Corporate debt securities(1) | ||
Debt Securities, Available-for-sale [Abstract] | ||
Available-for-sale Securities - Carrying Amount | 246 | |
Available-for-sale Securities, Unrecognized Loss | (1) | |
Available-for-sale Securities - Estimated Fair Value | 245 | |
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Cash and Cash Equivalents | 36 | |
Marketable securities | 209 | |
Available-for-sale Securities | U.S. Gov't securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Available-for-sale Securities - Carrying Amount | 19,354 | |
Available-for-sale Securities, Unrecognized Loss | (19) | |
Available-for-sale Securities - Estimated Fair Value | 19,335 | |
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Cash and Cash Equivalents | 2,968 | |
Marketable securities | $ 16,367 |
Fair Value Measurements - Sch_3
Fair Value Measurements - Schedule of Available for Sale Securities Maturities (Details) $ in Millions | Apr. 03, 2022USD ($) |
Cost Basis | |
Due within one year | $ 19,585 |
Due after one year through five years | 19 |
Due after five years through ten years | 0 |
Total debt securities | 19,604 |
Fair Value | |
Due within one year | 19,564 |
Due after one year through five years | 19 |
Due after five years through ten years | 0 |
Total debt securities | $ 19,583 |
Fair Value Measurements - Fin_2
Fair Value Measurements - Financial Liabilities not Measured at Fair Value (Details) - USD ($) $ in Millions | Apr. 03, 2022 | Jan. 02, 2022 |
Financial Liabilities | ||
Current Debt | $ 4,297 | $ 3,766 |
Non-Current Debt | ||
Non-Current Debt | 28,851 | $ 29,985 |
Carrying Amount | ||
Financial Liabilities | ||
Current Debt | 4,297 | |
Non-Current Debt | ||
Non-Current Debt | 28,851 | |
Estimated Fair Value | ||
Financial Liabilities | ||
Current Debt | 4,298 | |
Non-Current Debt | ||
Non-Current Debt | $ 29,356 | |
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 | $ 266 | |
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 | $ 802 | |
3.375% Notes due 2023 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 820 | |
0.650% Notes due 2024 (750MM Euro 1.1311) | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 0.65% | |
0.650% Notes due 2024 (750MM Euro 1.1311) | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 824 | |
0.650% Notes due 2024 (750MM Euro 1.1311) | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 829 | |
5.50% Notes due 2024 (500 MM GBP 1.3485) | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 5.50% | |
5.50% Notes due 2024 (500 MM GBP 1.3485) | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 654 | |
5.50% Notes due 2024 (500 MM GBP 1.3485) | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 713 | |
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 | $ 749 | |
2.625% Notes due 2025 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 762 | |
0.55% Notes due 2025 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 0.55% | |
0.55% Notes due 2025 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 950 | |
0.55% Notes due 2025 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 886 | |
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 | $ 1,995 | |
2.45% Notes due 2026 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 1,981 | |
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 | $ 930 | |
2.95% Notes due 2027 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 934 | |
0.95% Notes due 2027 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 0.95% | |
0.95% Notes due 2027 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 1,436 | |
0.95% Notes due 2027 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 1,307 | |
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 | $ 1,496 | |
2.90% Notes due 2028 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 1,489 | |
1.150% Notes due 2028 (750MM Euro 1.1311) | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 1.15% | |
1.150% Notes due 2028 (750MM Euro 1.1311) | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 826 | |
1.150% Notes due 2028 (750MM Euro 1.1311) | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 829 | |
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 | $ 298 | |
6.95% Notes due 2029 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 379 | |
1.30% Notes due 2030 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 1.30% | |
1.30% Notes due 2030 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 1,672 | |
1.30% Notes due 2030 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 1,486 | |
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 | $ 590 | |
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 | $ 855 | |
4.375% Notes due 2033 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 959 | |
1.650% Notes due 2035 (1.5B Euro 1.1311) | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 1.65% | |
1.650% Notes due 2035 (1.5B Euro 1.1311) | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 1,654 | |
1.650% Notes due 2035 (1.5B Euro 1.1311) | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 1,687 | |
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 | $ 917 | |
3.55% Notes due 2036 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 947 | |
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 | $ 993 | |
5.95% Notes due 2037 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 1,288 | |
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 | $ 1,416 | |
3.625% Notes due 2037 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 1,463 | |
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 | $ 992 | |
3.40% Notes due 2038 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 999 | |
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 | $ 697 | |
5.85% Debentures due 2038 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 901 | |
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 | $ 540 | |
4.50% Debentures due 2040 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 617 | |
2.10% Notes due 2040 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 2.10% | |
2.10% Notes due 2040 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 914 | |
2.10% Notes due 2040 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 777 | |
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 | $ 342 | |
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 | $ 496 | |
4.50% Notes due 2043 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 565 | |
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 | $ 1,975 | |
3.70% Notes due 2046 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 2,097 | |
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 | $ 906 | |
3.75% Notes due 2047 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 969 | |
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 | $ 743 | |
3.50% Notes due 2048 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 766 | |
2.25% Notes due 2050 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 2.25% | |
2.25% Notes due 2050 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 914 | |
2.25% Notes due 2050 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 759 | |
2.45% Notes due 2060 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 2.45% | |
2.45% Notes due 2060 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 1,155 | |
2.45% Notes due 2060 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | 942 | |
Other | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | 7 | |
Other | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 7 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Billions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Income Tax Disclosure [Abstract] | ||
Worldwide effective income tax rate (as a percent) | 12.20% | 16.60% |
Unrecognized tax benefits | $ 3.3 |
Pensions and Other Benefit Pl_3
Pensions and Other Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Retirement Plans | ||
Components of net periodic benefit cost | ||
Service cost | $ 321 | $ 353 |
Interest cost | 230 | 193 |
Expected return on plan assets | (699) | (680) |
Amortization of prior service cost/(credit) | (46) | (45) |
Recognized actuarial losses | 162 | 314 |
Curtailments and settlements | 1 | 1 |
Net periodic benefit cost | (31) | 136 |
Other Benefit Plans | ||
Components of net periodic benefit cost | ||
Service cost | 80 | 77 |
Interest cost | 26 | 20 |
Expected return on plan assets | (2) | (2) |
Amortization of prior service cost/(credit) | (1) | (8) |
Recognized actuarial losses | 30 | 38 |
Curtailments and settlements | 0 | 0 |
Net periodic benefit cost | $ 133 | $ 125 |
Pensions and Other Benefit Pl_4
Pensions and Other Benefit Plans (Details) $ in Millions | 3 Months Ended |
Apr. 03, 2022USD ($) | |
U.S. | |
Defined Benefit Plan Disclosure [Line Items] | |
Contribution to pension plans | $ 29 |
International retirement plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Contribution to pension plans | $ 5 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning Balance | $ 74,023 | $ 63,278 |
Net change | (699) | (86) |
Ending Balance | 74,709 | 65,834 |
Accumulated Foreign Currency Adjustment Attributable to Parent | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning Balance | (10,017) | |
Net change | (554) | |
Ending Balance | (10,571) | |
Accumulated Net Investment Gain (Loss) Attributable to Parent | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning Balance | (3) | |
Net change | (13) | |
Ending Balance | (16) | |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning Balance | (2,702) | |
Net change | 164 | |
Ending Balance | (2,538) | |
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 | (336) | |
Net change | (296) | |
Ending Balance | (632) | |
AOCI Attributable to Parent | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning Balance | (13,058) | (15,242) |
Net change | (699) | (86) |
Ending Balance | $ (13,757) | $ (15,328) |
Earnings Per Share (Details)
Earnings Per Share (Details) - $ / shares shares in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Reconciliation of basic net earnings per share to diluted net earnings per share | ||
Basic net earnings per share | $ 1.96 | $ 2.35 |
Average shares outstanding — basic | 2,629.2 | 2,631.6 |
Potential shares exercisable under stock option plans | 140.1 | 128.4 |
Less: shares which could be repurchased under treasury stock method | (102.8) | (87.3) |
Average shares outstanding — diluted | 2,666.5 | 2,672.7 |
Diluted net earnings per share | $ 1.93 | $ 2.32 |
Antidilutive securities excluded from computation of earnings per share, amount | 9 |
Segments of Business and Geog_3
Segments of Business and Geographic Areas - Sales By Segment Of Business (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Sales by segment of business | ||
Sales to customers | $ 23,426 | $ 22,321 |
Percent Change (as a percent) | 5.00% | |
U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 11,414 | 11,111 |
Percent Change (as a percent) | 2.70% | |
International | ||
Sales by segment of business | ||
Sales to customers | $ 12,012 | 11,210 |
Percent Change (as a percent) | 7.20% | |
CONSUMER HEALTH | ||
Sales by segment of business | ||
Sales to customers | $ 3,586 | 3,641 |
Percent Change (as a percent) | (1.50%) | |
CONSUMER HEALTH | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 1,557 | 1,611 |
Percent Change (as a percent) | (3.40%) | |
CONSUMER HEALTH | International | ||
Sales by segment of business | ||
Sales to customers | $ 2,029 | 2,030 |
Percent Change (as a percent) | 0.00% | |
CONSUMER HEALTH | OTC [Member] | ||
Sales by segment of business | ||
Sales to customers | $ 1,461 | 1,273 |
Percent Change (as a percent) | 14.80% | |
CONSUMER HEALTH | OTC [Member] | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 670 | 599 |
Percent Change (as a percent) | 11.80% | |
CONSUMER HEALTH | OTC [Member] | International | ||
Sales by segment of business | ||
Sales to customers | $ 791 | 673 |
Percent Change (as a percent) | 17.50% | |
CONSUMER HEALTH | Skin Health/Beauty | ||
Sales by segment of business | ||
Sales to customers | $ 1,012 | 1,163 |
Percent Change (as a percent) | (13.00%) | |
CONSUMER HEALTH | Skin Health/Beauty | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 544 | 634 |
Percent Change (as a percent) | (14.20%) | |
CONSUMER HEALTH | Skin Health/Beauty | International | ||
Sales by segment of business | ||
Sales to customers | $ 468 | 529 |
Percent Change (as a percent) | (11.60%) | |
CONSUMER HEALTH | Oral Care | ||
Sales by segment of business | ||
Sales to customers | $ 366 | 417 |
Percent Change (as a percent) | (12.20%) | |
CONSUMER HEALTH | Oral Care | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 143 | 163 |
Percent Change (as a percent) | (12.60%) | |
CONSUMER HEALTH | Oral Care | International | ||
Sales by segment of business | ||
Sales to customers | $ 223 | 254 |
Percent Change (as a percent) | (12.00%) | |
CONSUMER HEALTH | Baby Care | ||
Sales by segment of business | ||
Sales to customers | $ 355 | 389 |
Percent Change (as a percent) | (8.60%) | |
CONSUMER HEALTH | Baby Care | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 85 | 96 |
Percent Change (as a percent) | (11.50%) | |
CONSUMER HEALTH | Baby Care | International | ||
Sales by segment of business | ||
Sales to customers | $ 270 | 293 |
Percent Change (as a percent) | (7.70%) | |
CONSUMER HEALTH | Women's Health | ||
Sales by segment of business | ||
Sales to customers | $ 228 | 222 |
Percent Change (as a percent) | 2.60% | |
CONSUMER HEALTH | Women's Health | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 3 | 3 |
Percent Change (as a percent) | 7.20% | |
CONSUMER HEALTH | Women's Health | International | ||
Sales by segment of business | ||
Sales to customers | $ 224 | 219 |
Percent Change (as a percent) | 2.50% | |
CONSUMER HEALTH | Wound Care/Other | ||
Sales by segment of business | ||
Sales to customers | $ 164 | 177 |
Percent Change (as a percent) | (7.40%) | |
CONSUMER HEALTH | Wound Care/Other | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 112 | 115 |
Percent Change (as a percent) | (3.30%) | |
CONSUMER HEALTH | Wound Care/Other | International | ||
Sales by segment of business | ||
Sales to customers | $ 52 | 61 |
Percent Change (as a percent) | (15.30%) | |
PHARMACEUTICAL | ||
Sales by segment of business | ||
Sales to customers | $ 12,869 | 12,101 |
Percent Change (as a percent) | 6.30% | |
PHARMACEUTICAL | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 6,632 | 6,446 |
Percent Change (as a percent) | 2.90% | |
PHARMACEUTICAL | International | ||
Sales by segment of business | ||
Sales to customers | $ 6,237 | 5,655 |
Percent Change (as a percent) | 10.30% | |
PHARMACEUTICAL | Immunology | ||
Sales by segment of business | ||
Sales to customers | $ 4,119 | 3,914 |
Percent Change (as a percent) | 5.20% | |
PHARMACEUTICAL | Immunology | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 2,501 | 2,413 |
Percent Change (as a percent) | 3.70% | |
PHARMACEUTICAL | Immunology | International | ||
Sales by segment of business | ||
Sales to customers | $ 1,617 | 1,501 |
Percent Change (as a percent) | 7.70% | |
PHARMACEUTICAL | Immunology | REMICADE | ||
Sales by segment of business | ||
Sales to customers | $ 663 | 777 |
Percent Change (as a percent) | (14.70%) | |
PHARMACEUTICAL | Immunology | REMICADE | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 358 | 489 |
Percent Change (as a percent) | (26.80%) | |
PHARMACEUTICAL | Immunology | REMICADE | U.S. Exports | ||
Sales by segment of business | ||
Sales to customers | $ 80 | 57 |
Percent Change (as a percent) | 40.50% | |
PHARMACEUTICAL | Immunology | REMICADE | International | ||
Sales by segment of business | ||
Sales to customers | $ 225 | 232 |
Percent Change (as a percent) | (2.60%) | |
PHARMACEUTICAL | Immunology | SIMPONI / SIMPONI ARIA | ||
Sales by segment of business | ||
Sales to customers | $ 571 | 562 |
Percent Change (as a percent) | 1.50% | |
PHARMACEUTICAL | Immunology | SIMPONI / SIMPONI ARIA | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 287 | 255 |
Percent Change (as a percent) | 12.50% | |
PHARMACEUTICAL | Immunology | SIMPONI / SIMPONI ARIA | International | ||
Sales by segment of business | ||
Sales to customers | $ 283 | 307 |
Percent Change (as a percent) | (7.60%) | |
PHARMACEUTICAL | Immunology | STELARA | ||
Sales by segment of business | ||
Sales to customers | $ 2,288 | 2,148 |
Percent Change (as a percent) | 6.50% | |
PHARMACEUTICAL | Immunology | STELARA | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 1,379 | 1,331 |
Percent Change (as a percent) | 3.60% | |
PHARMACEUTICAL | Immunology | STELARA | International | ||
Sales by segment of business | ||
Sales to customers | $ 909 | 817 |
Percent Change (as a percent) | 11.20% | |
PHARMACEUTICAL | Immunology | TREMFYA | ||
Sales by segment of business | ||
Sales to customers | $ 590 | 418 |
Percent Change (as a percent) | 41.30% | |
PHARMACEUTICAL | Immunology | TREMFYA | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 391 | 274 |
Percent Change (as a percent) | 42.70% | |
PHARMACEUTICAL | Immunology | TREMFYA | International | ||
Sales by segment of business | ||
Sales to customers | $ 199 | 143 |
Percent Change (as a percent) | 38.80% | |
PHARMACEUTICAL | Immunology | OTHER IMMUNOLOGY | ||
Sales by segment of business | ||
Sales to customers | $ 6 | 8 |
Percent Change (as a percent) | (22.00%) | |
PHARMACEUTICAL | Immunology | OTHER IMMUNOLOGY | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 6 | 7 |
Percent Change (as a percent) | (3.20%) | |
PHARMACEUTICAL | Immunology | OTHER IMMUNOLOGY | International | ||
Sales by segment of business | ||
Sales to customers | $ 0 | 2 |
PHARMACEUTICAL | Infectious Diseases | ||
Sales by segment of business | ||
Sales to customers | $ 1,297 | 998 |
Percent Change (as a percent) | 30.00% | |
PHARMACEUTICAL | Infectious Diseases | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 461 | 512 |
Percent Change (as a percent) | (10.00%) | |
PHARMACEUTICAL | Infectious Diseases | International | ||
Sales by segment of business | ||
Sales to customers | $ 836 | 485 |
Percent Change (as a percent) | 72.30% | |
PHARMACEUTICAL | Infectious Diseases | COVID-19 | ||
Sales by segment of business | ||
Sales to customers | $ 457 | 100 |
PHARMACEUTICAL | Infectious Diseases | COVID-19 | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 75 | 100 |
Percent Change (as a percent) | (24.90%) | |
PHARMACEUTICAL | Infectious Diseases | COVID-19 | International | ||
Sales by segment of business | ||
Sales to customers | $ 382 | 0 |
PHARMACEUTICAL | Infectious Diseases | EDURANT / rilpivirine | ||
Sales by segment of business | ||
Sales to customers | $ 248 | 243 |
Percent Change (as a percent) | 1.80% | |
PHARMACEUTICAL | Infectious Diseases | EDURANT / rilpivirine | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 9 | 10 |
Percent Change (as a percent) | (12.60%) | |
PHARMACEUTICAL | Infectious Diseases | EDURANT / rilpivirine | International | ||
Sales by segment of business | ||
Sales to customers | $ 239 | 233 |
Percent Change (as a percent) | 2.50% | |
PHARMACEUTICAL | Infectious Diseases | PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA | ||
Sales by segment of business | ||
Sales to customers | $ 501 | 546 |
Percent Change (as a percent) | (8.30%) | |
PHARMACEUTICAL | Infectious Diseases | PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 369 | 380 |
Percent Change (as a percent) | (3.10%) | |
PHARMACEUTICAL | Infectious Diseases | PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA | International | ||
Sales by segment of business | ||
Sales to customers | $ 132 | 166 |
Percent Change (as a percent) | (20.30%) | |
PHARMACEUTICAL | Infectious Diseases | OTHER INFECTIOUS DISEASES( | ||
Sales by segment of business | ||
Sales to customers | $ 91 | 108 |
Percent Change (as a percent) | (15.30%) | |
PHARMACEUTICAL | Infectious Diseases | OTHER INFECTIOUS DISEASES( | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 8 | 21 |
Percent Change (as a percent) | (62.50%) | |
PHARMACEUTICAL | Infectious Diseases | OTHER INFECTIOUS DISEASES( | International | ||
Sales by segment of business | ||
Sales to customers | $ 83 | 87 |
Percent Change (as a percent) | (3.80%) | |
PHARMACEUTICAL | Neuroscience | ||
Sales by segment of business | ||
Sales to customers | $ 1,741 | 1,715 |
Percent Change (as a percent) | 1.50% | |
PHARMACEUTICAL | Neuroscience | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 843 | 771 |
Percent Change (as a percent) | 9.30% | |
PHARMACEUTICAL | Neuroscience | International | ||
Sales by segment of business | ||
Sales to customers | $ 898 | 943 |
Percent Change (as a percent) | (4.80%) | |
PHARMACEUTICAL | Neuroscience | CONCERTA / methylphenidate | ||
Sales by segment of business | ||
Sales to customers | $ 157 | 171 |
Percent Change (as a percent) | (8.30%) | |
PHARMACEUTICAL | Neuroscience | CONCERTA / methylphenidate | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 35 | 47 |
Percent Change (as a percent) | (26.50%) | |
PHARMACEUTICAL | Neuroscience | CONCERTA / methylphenidate | International | ||
Sales by segment of business | ||
Sales to customers | $ 122 | 123 |
Percent Change (as a percent) | (1.30%) | |
PHARMACEUTICAL | Neuroscience | INVEGA SUSTENNA / XEPLION / INVEGA TRINZA / TREVICTA | ||
Sales by segment of business | ||
Sales to customers | $ 1,048 | 965 |
Percent Change (as a percent) | 8.60% | |
PHARMACEUTICAL | Neuroscience | INVEGA SUSTENNA / XEPLION / INVEGA TRINZA / TREVICTA | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 661 | 589 |
Percent Change (as a percent) | 12.20% | |
PHARMACEUTICAL | Neuroscience | INVEGA SUSTENNA / XEPLION / INVEGA TRINZA / TREVICTA | International | ||
Sales by segment of business | ||
Sales to customers | $ 387 | 376 |
Percent Change (as a percent) | 3.00% | |
PHARMACEUTICAL | Neuroscience | RISPERDAL CONSTA | ||
Sales by segment of business | ||
Sales to customers | $ 129 | 157 |
Percent Change (as a percent) | (17.60%) | |
PHARMACEUTICAL | Neuroscience | RISPERDAL CONSTA | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 63 | 67 |
Percent Change (as a percent) | (6.40%) | |
PHARMACEUTICAL | Neuroscience | RISPERDAL CONSTA | International | ||
Sales by segment of business | ||
Sales to customers | $ 66 | 89 |
Percent Change (as a percent) | (26.10%) | |
PHARMACEUTICAL | Neuroscience | OTHER NEUROSCIENCE | ||
Sales by segment of business | ||
Sales to customers | $ 408 | 422 |
Percent Change (as a percent) | (3.50%) | |
PHARMACEUTICAL | Neuroscience | OTHER NEUROSCIENCE | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 84 | 67 |
Percent Change (as a percent) | 25.50% | |
PHARMACEUTICAL | Neuroscience | OTHER NEUROSCIENCE | International | ||
Sales by segment of business | ||
Sales to customers | $ 323 | 355 |
Percent Change (as a percent) | (8.90%) | |
PHARMACEUTICAL | Oncology | ||
Sales by segment of business | ||
Sales to customers | $ 3,950 | 3,570 |
Percent Change (as a percent) | 10.60% | |
PHARMACEUTICAL | Oncology | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 1,582 | 1,377 |
Percent Change (as a percent) | 14.90% | |
PHARMACEUTICAL | Oncology | International | ||
Sales by segment of business | ||
Sales to customers | $ 2,369 | 2,193 |
Percent Change (as a percent) | 8.00% | |
PHARMACEUTICAL | Oncology | DARZALEX | ||
Sales by segment of business | ||
Sales to customers | $ 1,856 | 1,365 |
Percent Change (as a percent) | 36.00% | |
PHARMACEUTICAL | Oncology | DARZALEX | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 953 | 691 |
Percent Change (as a percent) | 37.90% | |
PHARMACEUTICAL | Oncology | DARZALEX | International | ||
Sales by segment of business | ||
Sales to customers | $ 903 | 674 |
Percent Change (as a percent) | 34.00% | |
PHARMACEUTICAL | Oncology | ERLEADA | ||
Sales by segment of business | ||
Sales to customers | $ 400 | 261 |
Percent Change (as a percent) | 53.00% | |
PHARMACEUTICAL | Oncology | ERLEADA | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 206 | 171 |
Percent Change (as a percent) | 20.30% | |
PHARMACEUTICAL | Oncology | ERLEADA | International | ||
Sales by segment of business | ||
Sales to customers | $ 194 | 90 |
PHARMACEUTICAL | Oncology | IMBRUVICA | ||
Sales by segment of business | ||
Sales to customers | $ 1,038 | 1,125 |
Percent Change (as a percent) | (7.70%) | |
PHARMACEUTICAL | Oncology | IMBRUVICA | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 370 | 444 |
Percent Change (as a percent) | (16.70%) | |
PHARMACEUTICAL | Oncology | IMBRUVICA | International | ||
Sales by segment of business | ||
Sales to customers | $ 668 | 680 |
Percent Change (as a percent) | (1.80%) | |
PHARMACEUTICAL | Oncology | ZYTIGA / abiraterone acetate | ||
Sales by segment of business | ||
Sales to customers | $ 539 | 638 |
Percent Change (as a percent) | (15.60%) | |
PHARMACEUTICAL | Oncology | ZYTIGA / abiraterone acetate | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 19 | 50 |
Percent Change (as a percent) | (62.10%) | |
PHARMACEUTICAL | Oncology | ZYTIGA / abiraterone acetate | International | ||
Sales by segment of business | ||
Sales to customers | $ 520 | 588 |
Percent Change (as a percent) | (11.60%) | |
PHARMACEUTICAL | Oncology | OTHER ONCOLOGY | ||
Sales by segment of business | ||
Sales to customers | $ 118 | 182 |
Percent Change (as a percent) | (35.10%) | |
PHARMACEUTICAL | Oncology | OTHER ONCOLOGY | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 34 | 21 |
Percent Change (as a percent) | 63.10% | |
PHARMACEUTICAL | Oncology | OTHER ONCOLOGY | International | ||
Sales by segment of business | ||
Sales to customers | $ 84 | 161 |
Percent Change (as a percent) | (47.70%) | |
PHARMACEUTICAL | Pulmonary Hypertension | ||
Sales by segment of business | ||
Sales to customers | $ 852 | 861 |
Percent Change (as a percent) | (1.10%) | |
PHARMACEUTICAL | Pulmonary Hypertension | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 572 | 573 |
Percent Change (as a percent) | (0.20%) | |
PHARMACEUTICAL | Pulmonary Hypertension | International | ||
Sales by segment of business | ||
Sales to customers | $ 279 | 288 |
Percent Change (as a percent) | (2.90%) | |
PHARMACEUTICAL | Pulmonary Hypertension | OPSUMIT | ||
Sales by segment of business | ||
Sales to customers | $ 443 | 450 |
Percent Change (as a percent) | (1.60%) | |
PHARMACEUTICAL | Pulmonary Hypertension | OPSUMIT | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 273 | 272 |
Percent Change (as a percent) | 0.50% | |
PHARMACEUTICAL | Pulmonary Hypertension | OPSUMIT | International | ||
Sales by segment of business | ||
Sales to customers | $ 170 | 179 |
Percent Change (as a percent) | (4.80%) | |
PHARMACEUTICAL | Pulmonary Hypertension | UPTRAVI | ||
Sales by segment of business | ||
Sales to customers | $ 325 | 305 |
Percent Change (as a percent) | 6.50% | |
PHARMACEUTICAL | Pulmonary Hypertension | UPTRAVI | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 269 | 259 |
Percent Change (as a percent) | 3.90% | |
PHARMACEUTICAL | Pulmonary Hypertension | UPTRAVI | International | ||
Sales by segment of business | ||
Sales to customers | $ 56 | 46 |
Percent Change (as a percent) | 20.90% | |
PHARMACEUTICAL | Pulmonary Hypertension | Other | ||
Sales by segment of business | ||
Sales to customers | $ 83 | 105 |
Percent Change (as a percent) | (20.80%) | |
PHARMACEUTICAL | Pulmonary Hypertension | Other | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 30 | 42 |
Percent Change (as a percent) | (29.00%) | |
PHARMACEUTICAL | Pulmonary Hypertension | Other | International | ||
Sales by segment of business | ||
Sales to customers | $ 53 | 63 |
Percent Change (as a percent) | (15.20%) | |
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | ||
Sales by segment of business | ||
Sales to customers | $ 910 | 1,044 |
Percent Change (as a percent) | (12.80%) | |
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 672 | 799 |
Percent Change (as a percent) | (15.80%) | |
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | International | ||
Sales by segment of business | ||
Sales to customers | $ 238 | 245 |
Percent Change (as a percent) | (3.00%) | |
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | XARELTO | ||
Sales by segment of business | ||
Sales to customers | $ 508 | 589 |
Percent Change (as a percent) | (13.80%) | |
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | XARELTO | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 508 | 589 |
Percent Change (as a percent) | (13.80%) | |
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 | $ 128 | 150 |
Percent Change (as a percent) | (14.60%) | |
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | INVOKANA / INVOKAMET | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 60 | 87 |
Percent Change (as a percent) | (30.70%) | |
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | INVOKANA / INVOKAMET | International | ||
Sales by segment of business | ||
Sales to customers | $ 68 | 63 |
Percent Change (as a percent) | 7.50% | |
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | Other | ||
Sales by segment of business | ||
Sales to customers | $ 274 | 305 |
Percent Change (as a percent) | (10.00%) | |
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | Other | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 104 | 122 |
Percent Change (as a percent) | (14.90%) | |
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | Other | International | ||
Sales by segment of business | ||
Sales to customers | $ 170 | 182 |
Percent Change (as a percent) | (6.60%) | |
MEDTECH(3) | ||
Sales by segment of business | ||
Sales to customers | $ 6,971 | 6,579 |
Percent Change (as a percent) | 5.90% | |
MEDTECH(3) | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 3,225 | 3,054 |
Percent Change (as a percent) | 5.60% | |
MEDTECH(3) | International | ||
Sales by segment of business | ||
Sales to customers | $ 3,746 | 3,525 |
Percent Change (as a percent) | 6.30% | |
MEDTECH(3) | Interventional Solutions | ||
Sales by segment of business | ||
Sales to customers | $ 1,092 | 949 |
Percent Change (as a percent) | 15.10% | |
MEDTECH(3) | Interventional Solutions | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 494 | 434 |
Percent Change (as a percent) | 13.80% | |
MEDTECH(3) | Interventional Solutions | International | ||
Sales by segment of business | ||
Sales to customers | $ 597 | 514 |
Percent Change (as a percent) | 16.20% | |
MEDTECH(3) | Orthopaedics | ||
Sales by segment of business | ||
Sales to customers | $ 2,188 | 2,113 |
Percent Change (as a percent) | 3.50% | |
MEDTECH(3) | Orthopaedics | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 1,289 | 1,249 |
Percent Change (as a percent) | 3.20% | |
MEDTECH(3) | Orthopaedics | International | ||
Sales by segment of business | ||
Sales to customers | $ 899 | 864 |
Percent Change (as a percent) | 4.10% | |
MEDTECH(3) | Orthopaedics | HIPS | ||
Sales by segment of business | ||
Sales to customers | $ 389 | 356 |
Percent Change (as a percent) | 9.30% | |
MEDTECH(3) | Orthopaedics | HIPS | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 225 | 209 |
Percent Change (as a percent) | 7.30% | |
MEDTECH(3) | Orthopaedics | HIPS | International | ||
Sales by segment of business | ||
Sales to customers | $ 164 | 146 |
Percent Change (as a percent) | 12.20% | |
MEDTECH(3) | Orthopaedics | KNEES | ||
Sales by segment of business | ||
Sales to customers | $ 339 | 317 |
Percent Change (as a percent) | 6.70% | |
MEDTECH(3) | Orthopaedics | KNEES | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 201 | 185 |
Percent Change (as a percent) | 8.60% | |
MEDTECH(3) | Orthopaedics | KNEES | International | ||
Sales by segment of business | ||
Sales to customers | $ 138 | 132 |
Percent Change (as a percent) | 4.10% | |
MEDTECH(3) | Orthopaedics | TRAUMA | ||
Sales by segment of business | ||
Sales to customers | $ 748 | 733 |
Percent Change (as a percent) | 2.10% | |
MEDTECH(3) | Orthopaedics | TRAUMA | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 475 | 450 |
Percent Change (as a percent) | 5.50% | |
MEDTECH(3) | Orthopaedics | TRAUMA | International | ||
Sales by segment of business | ||
Sales to customers | $ 273 | 282 |
Percent Change (as a percent) | (3.30%) | |
MEDTECH(3) | Orthopaedics | SPINE, SPORTS & OTHER | ||
Sales by segment of business | ||
Sales to customers | $ 712 | 707 |
Percent Change (as a percent) | 0.60% | |
MEDTECH(3) | Orthopaedics | SPINE, SPORTS & OTHER | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 387 | 404 |
Percent Change (as a percent) | (4.10%) | |
MEDTECH(3) | Orthopaedics | SPINE, SPORTS & OTHER | International | ||
Sales by segment of business | ||
Sales to customers | $ 324 | 303 |
Percent Change (as a percent) | 7.00% | |
MEDTECH(3) | Surgery | ||
Sales by segment of business | ||
Sales to customers | $ 2,434 | 2,372 |
Percent Change (as a percent) | 2.60% | |
MEDTECH(3) | Surgery | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 921 | 898 |
Percent Change (as a percent) | 2.50% | |
MEDTECH(3) | Surgery | International | ||
Sales by segment of business | ||
Sales to customers | $ 1,513 | 1,474 |
Percent Change (as a percent) | 2.70% | |
MEDTECH(3) | Surgery | ADVANCED | ||
Sales by segment of business | ||
Sales to customers | $ 1,146 | 1,118 |
Percent Change (as a percent) | 2.50% | |
MEDTECH(3) | Surgery | ADVANCED | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 417 | 405 |
Percent Change (as a percent) | 3.00% | |
MEDTECH(3) | Surgery | ADVANCED | International | ||
Sales by segment of business | ||
Sales to customers | $ 729 | 713 |
Percent Change (as a percent) | 2.20% | |
MEDTECH(3) | Surgery | GENERAL | ||
Sales by segment of business | ||
Sales to customers | $ 1,288 | 1,254 |
Percent Change (as a percent) | 2.70% | |
MEDTECH(3) | Surgery | GENERAL | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 504 | 493 |
Percent Change (as a percent) | 2.10% | |
MEDTECH(3) | Surgery | GENERAL | International | ||
Sales by segment of business | ||
Sales to customers | $ 784 | 761 |
Percent Change (as a percent) | 3.10% | |
MEDTECH(3) | Vision | ||
Sales by segment of business | ||
Sales to customers | $ 1,257 | 1,145 |
Percent Change (as a percent) | 9.80% | |
MEDTECH(3) | Vision | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 521 | 472 |
Percent Change (as a percent) | 10.40% | |
MEDTECH(3) | Vision | International | ||
Sales by segment of business | ||
Sales to customers | $ 736 | 673 |
Percent Change (as a percent) | 9.40% | |
MEDTECH(3) | Vision | CONTACT LENSES / OTHER | ||
Sales by segment of business | ||
Sales to customers | $ 910 | 857 |
Percent Change (as a percent) | 6.20% | |
MEDTECH(3) | Vision | CONTACT LENSES / OTHER | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 400 | 371 |
Percent Change (as a percent) | 7.70% | |
MEDTECH(3) | Vision | CONTACT LENSES / OTHER | International | ||
Sales by segment of business | ||
Sales to customers | $ 511 | 486 |
Percent Change (as a percent) | 5.10% | |
MEDTECH(3) | Vision | SURGICAL | ||
Sales by segment of business | ||
Sales to customers | $ 347 | 288 |
Percent Change (as a percent) | 20.40% | |
MEDTECH(3) | Vision | SURGICAL | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 121 | 101 |
Percent Change (as a percent) | 20.20% | |
MEDTECH(3) | Vision | SURGICAL | International | ||
Sales by segment of business | ||
Sales to customers | $ 226 | 187 |
Percent Change (as a percent) | 20.50% | |
CONSUMER HEALTH and PHARMACEUTICAL [Member] | OTC [Member] | CHINA | ||
Sales by segment of business | ||
Sales to customers | $ 100 |
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 | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Segment Reporting Information [Line Items] | ||
Worldwide income before tax | $ 5,862 | $ 7,429 |
Percentage Change in Operating Income Loss | (21.10%) | |
Amount prepaid and due to manufacturers | $ 900 | |
Restructuring charges | 70 | 53 |
PHARMACEUTICAL | bermekimab | ||
Segment Reporting Information [Line Items] | ||
In-process research and development expense | 600 | |
MedTech | ||
Segment Reporting Information [Line Items] | ||
Restructuring charges | 100 | 100 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total Segment Operating Income | $ 6,087 | 7,640 |
Percentage Change in Operating Income Loss | (20.30%) | |
Operating Segments | CONSUMER HEALTH | ||
Segment Reporting Information [Line Items] | ||
Total Segment Operating Income | $ 686 | 842 |
Business Exit Costs | $ 102 | 0 |
Percentage Change in Operating Income Loss | (18.50%) | |
Amortization | $ 100 | 100 |
Operating Segments | PHARMACEUTICAL | ||
Segment Reporting Information [Line Items] | ||
Total Segment Operating Income | $ 3,924 | 5,169 |
Percentage Change in Operating Income Loss | (24.10%) | |
Amortization | $ 800 | 900 |
Gain (loss) on disposition of assets | 600 | |
Unrealized gain (loss) on securities | 400 | |
Operating Segments | MedTech | ||
Segment Reporting Information [Line Items] | ||
Total Segment Operating Income | $ 1,477 | 1,629 |
Percentage Change in Operating Income Loss | (9.30%) | |
Amortization | $ 300 | 300 |
Corporate, Non-Segment | ||
Segment Reporting Information [Line Items] | ||
Total Segment Operating Income | $ 123 | $ 211 |
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 | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Sales by geographic area | ||
Sales | $ 23,426 | $ 22,321 |
Percentage Change In Sales By Geographic Area | 5.00% | |
United States | ||
Sales by geographic area | ||
Sales | $ 11,414 | 11,111 |
Percentage Change In Sales By Geographic Area | 2.70% | |
Europe | ||
Sales by geographic area | ||
Sales | $ 6,024 | 5,414 |
Percentage Change In Sales By Geographic Area | 11.30% | |
Western Hemisphere, excluding U.S. | ||
Sales by geographic area | ||
Sales | $ 1,482 | 1,424 |
Percentage Change In Sales By Geographic Area | 4.10% | |
Asia-Pacific, Africa | ||
Sales by geographic area | ||
Sales | $ 4,506 | $ 4,372 |
Percentage Change In Sales By Geographic Area | 3.10% |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Narrative (Details) $ in Billions | 3 Months Ended |
Apr. 04, 2021USD ($) | |
Evra and Doxil | |
Business Acquisition [Line Items] | |
Gain (loss) on disposition of assets | $ 0.6 |
Legal Proceedings (Details)
Legal Proceedings (Details) $ in Millions | 1 Months Ended | 12 Months Ended | |||||||||||
Apr. 30, 2022USD ($) | Oct. 31, 2021USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jan. 31, 2020USD ($) | Oct. 31, 2019USD ($) | Jul. 31, 2018USD ($) | Dec. 29, 2019USD ($) | Apr. 03, 2022claimantclaimpatientcases | Sep. 30, 2021cases | May 31, 2021casesclaimant | Oct. 31, 2020USD ($) | Apr. 30, 2015claim | |
Legal Proceeding (Textuals) | |||||||||||||
Number of pending claims | claim | 100 | ||||||||||||
ASR | |||||||||||||
Legal Proceeding (Textuals) | |||||||||||||
Product liability contingency, number of claimants | 230 | ||||||||||||
Pinnacle Acetabular Cup System | |||||||||||||
Legal Proceeding (Textuals) | |||||||||||||
Product liability contingency, number of claimants | 3,900 | ||||||||||||
Pelvic Meshes | |||||||||||||
Legal Proceeding (Textuals) | |||||||||||||
Product liability contingency, number of claimants | 9,800 | ||||||||||||
Risperdal | |||||||||||||
Legal Proceeding (Textuals) | |||||||||||||
Product liability contingency, number of claimants | 8,600 | ||||||||||||
XARELTO | |||||||||||||
Legal Proceeding (Textuals) | |||||||||||||
Product liability contingency, number of claimants | 4,300 | ||||||||||||
Talc | |||||||||||||
Legal Proceeding (Textuals) | |||||||||||||
Product liability contingency, number of claimants | 40,400 | ||||||||||||
Invokana | |||||||||||||
Legal Proceeding (Textuals) | |||||||||||||
Product liability contingency, number of claimants | 80 | ||||||||||||
Physiomesh | |||||||||||||
Legal Proceeding (Textuals) | |||||||||||||
Product liability contingency, number of claimants | 4,800 | ||||||||||||
Opioid | |||||||||||||
Legal Proceeding (Textuals) | |||||||||||||
Product liability contingency, number of claimants | 3,500 | ||||||||||||
Contact Lenses | |||||||||||||
Legal Proceeding (Textuals) | |||||||||||||
Number of pending claims | claim | 30 | ||||||||||||
Judicial Ruling | |||||||||||||
Legal Proceeding (Textuals) | |||||||||||||
Damages awarded | $ | $ 6.8 | $ 8,000 | |||||||||||
Pending Litigation | |||||||||||||
Legal Proceeding (Textuals) | |||||||||||||
Number of pending claims | claim | 1,000 | ||||||||||||
Loss contingency, estimate of possible loss | $ | $ 4,000 | $ 5,000 | |||||||||||
Loss contingency, estimate of additional possible loss | $ | $ 1,000 | ||||||||||||
Pending Litigation | Physiomesh | |||||||||||||
Legal Proceeding (Textuals) | |||||||||||||
Product liability contingency, number of claimants | 4,300 | ||||||||||||
Number of claims within settlement agreement | cases | 3,729 | ||||||||||||
Number of pending claims | cases | 105 | 3,600 | |||||||||||
DePuy ASR U.S. | Settled Litigation | |||||||||||||
Legal Proceeding (Textuals) | |||||||||||||
Number of patients in settlement | patient | 10,000 | ||||||||||||
Baby Powder | Talc | |||||||||||||
Legal Proceeding (Textuals) | |||||||||||||
Reserve established | $ | $ 2,000 | ||||||||||||
Baby Powder | Judicial Ruling | Damages from Product Defects | |||||||||||||
Legal Proceeding (Textuals) | |||||||||||||
Litigation contingency | $ | $ 2,100 | $ 4,700 | |||||||||||
Payments for legal settlements | $ | $ 2,500 | ||||||||||||
Oklahoma Attorney General vs. Johnson & Johnson and JPI | Settled Litigation | |||||||||||||
Legal Proceeding (Textuals) | |||||||||||||
Damages awarded | $ | $ 465 | ||||||||||||
Surgical Mesh Products Marketing | Judicial Ruling | |||||||||||||
Legal Proceeding (Textuals) | |||||||||||||
Damages awarded | $ | $ 344 | ||||||||||||
Surgical Mesh Products Marketing | Judicial Ruling | Subsequent Event | |||||||||||||
Legal Proceeding (Textuals) | |||||||||||||
Damages awarded | $ | $ 302 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 70 | $ 53 |
Supply Chain | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 72 | |
Restructuring charges recorded to date | 1,800 | |
Supply Chain | Maximum | ||
Restructuring Cost and Reserve [Line Items] | ||
Cost savings expected | 800 | |
Restructuring estimated cost | 2,300 | |
Supply Chain | Minimum | ||
Restructuring Cost and Reserve [Line Items] | ||
Cost savings expected | 600 | |
Restructuring estimated cost | 2,100 | |
Supply Chain | Restructuring Charges | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 70 | |
Supply Chain | Cost of products sold | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 16 | |
Supply Chain | Other (income) expense | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | (14) | |
MedTech | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 100 | $ 100 |
Restructuring - Schedule of Res
Restructuring - Schedule of Restructuring Reserve (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring charges | $ 70 | $ 53 |
MedTech | ||
Restructuring Reserve [Roll Forward] | ||
Reserve balance beginning | 137 | |
Restructuring charges | 72 | |
Cash settlements | (82) | |
Settled non cash | (12) | |
Reserve balance ending | 115 | |
MedTech | Severance | ||
Restructuring Reserve [Roll Forward] | ||
Reserve balance beginning | 112 | |
Restructuring charges | 0 | |
Cash settlements | (10) | |
Settled non cash | 0 | |
Reserve balance ending | 102 | |
MedTech | Asset Write-offs/Sales | ||
Restructuring Reserve [Roll Forward] | ||
Reserve balance beginning | 0 | |
Restructuring charges | (23) | |
Cash settlements | 35 | |
Settled non cash | (12) | |
Reserve balance ending | 0 | |
MedTech | Other | ||
Restructuring Reserve [Roll Forward] | ||
Reserve balance beginning | 25 | |
Restructuring charges | 95 | |
Cash settlements | (107) | |
Settled non cash | 0 | |
Reserve balance ending | $ 13 |