Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Apr. 22, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'Amgen Inc. | ' |
Entity Central Index Key | '0000318154 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 757,021,648 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (Unaudited) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Revenues: | ' | ' |
Product sales | $4,356 | $4,151 |
Other revenues | 165 | 87 |
Total revenues | 4,521 | 4,238 |
Operating expenses: | ' | ' |
Cost of sales | 1,090 | 744 |
Research and development | 1,027 | 878 |
Selling, general and administrative | 1,023 | 1,158 |
Other | 17 | 16 |
Total operating expenses | 3,157 | 2,796 |
Operating income | 1,364 | 1,442 |
Interest expense, net | 259 | 263 |
Interest and other income, net | 99 | 164 |
Income before income taxes | 1,204 | 1,343 |
Provision (benefit) for income taxes | 131 | -91 |
Net income | $1,073 | $1,434 |
Earnings per share: | ' | ' |
Basic (in usd per share) | $1.42 | $1.91 |
Diluted (in usd per share) | $1.40 | $1.88 |
Shares used in calculation of earnings per share: | ' | ' |
Basic (in shares) | 757 | 751 |
Diluted (in shares) | 768 | 764 |
Dividends paid per share (in usd per share) | $0.61 | $0.47 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' |
Net income | $1,073 | $1,434 |
Other comprehensive income (loss), net of reclassification adjustments and taxes: | ' | ' |
Foreign currency translation losses | -8 | -23 |
Effective portion of cash flow hedges | 2 | 75 |
Net unrealized gains (losses) on available-for-sale securities | 40 | -62 |
Other | 1 | 1 |
Other comprehensive income (loss), net of tax | 35 | -9 |
Comprehensive income | $1,108 | $1,425 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $3,687 | $3,805 |
Marketable securities | 16,115 | 15,596 |
Trade receivables, net | 2,514 | 2,697 |
Inventories | 2,966 | 3,019 |
Other current assets | 3,020 | 2,250 |
Total current assets | 28,302 | 27,367 |
Property, plant and equipment, net | 5,365 | 5,349 |
Intangible assets, net | 13,566 | 13,262 |
Goodwill | 14,832 | 14,968 |
Restricted investments | 3,414 | 3,412 |
Other assets | 1,525 | 1,767 |
Total assets | 67,004 | 66,125 |
Current liabilities: | ' | ' |
Accounts payable | 949 | 787 |
Accrued liabilities | 4,749 | 4,655 |
Current portion of long-term debt | 2,505 | 2,505 |
Total current liabilities | 8,203 | 7,947 |
Long-term debt | 29,519 | 29,623 |
Other noncurrent liabilities | 6,541 | 6,459 |
Contingencies and commitments | ' | ' |
Stockholders’ equity: | ' | ' |
Common stock and additional paid-in capital; $0.0001 par value; 2,750.0 shares authorized; outstanding - 756.9 shares in 2014 and 754.6 shares in 2013 | 29,890 | 29,891 |
Accumulated deficit | -7,023 | -7,634 |
Accumulated other comprehensive loss | -126 | -161 |
Total stockholders’ equity | 22,741 | 22,096 |
Total liabilities and stockholders’ equity | $67,004 | $66,125 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Common stock and additional paid-in capital, par value (in usd per share) | $0.00 | $0.00 |
Common stock and additional paid-in capital, shares authorized | 2,750,000,000 | 2,750,000,000 |
Common stock and additional paid-in capital, shares outstanding | 756,900,000 | 754,600,000 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from operating activities: | ' | ' |
Net income | $1,073 | $1,434 |
Depreciation and amortization | 518 | 277 |
Stock-based compensation expense | 87 | 92 |
Other items, net | -8 | -38 |
Changes in operating assets and liabilities, net of acquisitions: | ' | ' |
Trade receivables, net | 180 | 19 |
Inventories | -3 | -12 |
Other assets | -181 | -10 |
Accounts payable | 92 | 35 |
Accrued income taxes | -48 | -406 |
Other liabilities | -568 | -342 |
Net cash provided by operating activities | 1,142 | 1,049 |
Cash flows from investing activities: | ' | ' |
Purchases of property, plant and equipment | -172 | -158 |
Cash paid for acquisitions, net of cash acquired | -104 | 0 |
Purchases of marketable securities | -2,884 | -6,964 |
Proceeds from sales of marketable securities | 1,811 | 6,013 |
Proceeds from maturities of marketable securities | 957 | 2,924 |
Increase (Decrease) of Restricted Investments | 329 | 0 |
Other | -44 | -6 |
Net cash (used in) provided by investing activities | -765 | 1,809 |
Cash flows from financing activities: | ' | ' |
Repayment of debt | -125 | -2,500 |
Repurchases of common stock | 0 | -832 |
Dividends paid | -460 | -353 |
Net proceeds from issuance of common stock in connection with the Company’s equity award programs | 38 | 93 |
Other | 52 | 7 |
Net cash used in financing activities | -495 | -3,585 |
Decrease in cash and cash equivalents | -118 | -727 |
Cash and cash equivalents at beginning of period | 3,805 | 3,257 |
Cash and cash equivalents at end of period | $3,687 | $2,530 |
Summary_of_significant_account
Summary of significant accounting policies | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Summary of significant accounting policies | ' |
Summary of significant accounting policies | |
Business | |
Amgen Inc. (including its subsidiaries, referred to as “Amgen,” “the Company,” “we,” “our” or “us”) is a global biotechnology pioneer that discovers, develops, manufactures and delivers innovative human therapeutics. We operate in one business segment: human therapeutics. | |
Basis of presentation | |
The financial information for the three months ended March 31, 2014 and 2013, is unaudited but includes all adjustments (consisting of only normal recurring adjustments, unless otherwise indicated), which Amgen considers necessary for a fair presentation of its condensed consolidated results of operations for those periods. Interim results are not necessarily indicative of results for the full fiscal year. | |
The condensed consolidated financial statements should be read in conjunction with our consolidated financial statements and the notes thereto contained in our Annual Report on Form 10-K for the year ended December 31, 2013. | |
Principles of consolidation | |
The condensed consolidated financial statements include the accounts of Amgen as well as its majority-owned subsidiaries. We do not have any significant interests in any variable interest entities. All material intercompany transactions and balances have been eliminated in consolidation. | |
Use of estimates | |
The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States (GAAP) requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results may differ from those estimates. | |
Property, plant and equipment, net | |
Property, plant and equipment is recorded at historical cost, net of accumulated depreciation and amortization of $7.1 billion and $6.9 billion as of March 31, 2014, and December 31, 2013, respectively. | |
Restricted investments | |
We have restricted investments on our Condensed Consolidated Balance Sheets that are owned by ATL Holdings Limited (ATL Holdings), a wholly-owned subsidiary. ATL Holdings is an entity distinct from the Company and its other subsidiaries, with separate assets and liabilities. Because certain third parties own Class A preferred shares of ATL Holdings, this entity is required to hold restricted investments, which were composed of interest-bearing securities, cash and related interest receivable as of March 31, 2014 and December 31, 2013. |
Business_combinations
Business combinations | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Business Combinations [Abstract] | ' | |||
Business combinations | ' | |||
Business combinations | ||||
Onyx Pharmaceuticals | ||||
On October 1, 2013, we acquired all of the outstanding stock of Onyx Pharmaceuticals, Inc. (Onyx), a global biopharmaceutical company engaged in the development and commercialization of innovative therapies for improving the lives of people afflicted with cancer. Onyx has a multiple myeloma franchise, with Kyprolis® (carfilzomib) for Injection already approved in the United States, and with oprozomib being evaluated in clinical trials for patients with hematologic malignancies. In addition, Onyx has three partnered oncology assets: Nexavar® (sorafenib) tablets (an Onyx and Bayer compound), Stivarga® (regorafenib) tablets (a Bayer compound), and palbociclib (a Pfizer, Inc. compound). This transaction, which was accounted for as a business combination, provides us with an opportunity to expand our oncology franchise. Onyx’s operations have been included in our condensed consolidated financial statements commencing on the acquisition date. | ||||
The aggregate consideration to acquire Onyx was paid in cash and consisted of (in millions): | ||||
Total consideration transferred | $ | 9,517 | ||
Compensation expense | 197 | |||
Total cash paid | $ | 9,714 | ||
The $9,517 million cash payment consisted of a $9,186 million cash payment to the outstanding common stockholders and a $331 million cash payment to the Onyx equity award holders for services rendered prior to October 1, 2013 under the Onyx equity award plans. The remaining $197 million of cash, which related to the accelerated vesting of the remaining Onyx equity awards, was recognized as compensation expense during the three months ended December 31, 2013. This amount was included primarily in Selling, general and administrative (SG&A) expense in the Consolidated Statement of Income. | ||||
The consideration to acquire Onyx was allocated preliminarily to the acquisition date fair values of assets acquired and liabilities assumed as follows (in millions): | ||||
Cash and cash equivalents | $ | 319 | ||
Marketable securities | 337 | |||
Inventories | 170 | |||
Indefinite-lived intangible assets - In-process research and development (IPR&D) | 1,170 | |||
Finite-lived intangible assets - Developed product technology rights | 6,190 | |||
Finite-lived intangible assets - Licensing rights | 2,792 | |||
Goodwill | 2,393 | |||
Convertible debt | (742 | ) | ||
Assumed contingent consideration | (261 | ) | ||
Deferred income taxes, net | (2,993 | ) | ||
Other assets (liabilities), net | 142 | |||
Total consideration | $ | 9,517 | ||
Onyx’s preliminary goodwill at December 31, 2013 has been revised. Goodwill was reduced by $133 million due primarily to revisions which increased the acquisition date fair values of developed product technology rights by $280 million and deferred income taxes by $75 million, and decreased inventory by $80 million. The adjustments did not have a material effect on our current or prior period financial statements. | ||||
The developed product technology rights acquired relate to Kyprolis® which is approved in the United States. This product technology is being amortized on a straight-line basis over the estimated useful life of 12 years. | ||||
Licensing rights acquired represent the aggregate estimated fair values of receiving future milestone, royalty and/or profit sharing payments associated with various contract agreements that were entered into by Onyx prior to the acquisition. The weighted-average useful life of these finite-lived intangible assets is ten years, and they are being amortized primarily on a straight-line basis. | ||||
Our accounting for this acquisition is preliminary. The fair value estimates for the assets acquired and liabilities assumed were based upon preliminary calculations and valuations, and our estimates and assumptions are subject to change as we obtain additional information for our estimates during the measurement period (up to one year from the acquisition date). The primary areas of those preliminary estimates that are not yet finalized relate to certain identifiable intangible assets and tax related items. | ||||
Filgrastim and pegfilgrastim rights acquisition | ||||
In October 2013, we entered into an agreement to acquire the licenses to filgrastim and pegfilgrastim effective January 1, 2014 (acquisition date), that were held by F. Hoffmann-La Roche Ltd. (Roche) in approximately 100 markets in Eastern Europe, Latin America, Asia, the Middle East and Africa, (Product Rights), and to settle our preexisting relationship related to the Product Rights for total consideration of $497 million. The acquisition of the Product Rights was accounted for as a business combination as the acquired rights and processes are capable of producing an immediate return to us, and the settlement of the preexisting relationship was accounted for separately from the business combination. | ||||
This transaction provides us with an opportunity to expand our geographic presence and reach more patients in more countries that could benefit from our therapies. The operations of the acquired set of activities have been included in our financial statements commencing on the acquisition date. Pro forma results of operations for this acquisition have not been presented because this acquisition is not material to our consolidated results of operations. | ||||
The aggregate consideration transferred consisted of (in millions): | ||||
Total consideration transferred or to be transferred | $ | 497 | ||
Settlement of preexisting relationship at fair value | (99 | ) | ||
Total consideration transferred to acquire the Product Rights | $ | 398 | ||
The settlement of the preexisting relationship relates to a supply contract between Amgen and Roche that was terminated as a result of the acquisition of the Product Rights. The fair value of the contract of $99 million was recognized in Cost of sales in the Condensed Consolidated Statement of Income for the three months ended March 31, 2014. | ||||
The consideration to acquire the Product Rights was allocated to the acquisition date fair values of assets acquired as follows (in millions): | ||||
Finite-lived intangible assets - Marketing-related rights | $ | 363 | ||
Finite-lived intangible assets - Developed product technology rights | 11 | |||
Goodwill | 3 | |||
Other assets | 21 | |||
Total consideration | $ | 398 | ||
The marketing-related and developed product technology rights acquired relate to the Product Rights and are being amortized on a straight-line basis over their estimated useful lives of five years and three and one-half years, respectively. | ||||
Our accounting for this acquisition is preliminary. The fair value estimates for the assets acquired and liabilities incurred were based upon preliminary calculations and valuations, and our estimates and assumptions are subject to change as we obtain additional information for our estimates during the measurement period (up to one year from the acquisition date). The primary areas of those preliminary estimates that are not yet finalized relate to certain tangible assets and liabilities incurred, and identifiable intangible assets. |
Income_taxes
Income taxes | 3 Months Ended |
Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income taxes | ' |
Income taxes | |
The effective tax rate for the three months ended March 31, 2014 was 10.9% compared with (6.8)% for the corresponding period of the prior year. The effective rates are different from the federal statutory rates primarily as a result of indefinitely invested earnings of our foreign operations. We do not provide for U.S. income taxes on undistributed earnings of our foreign operations that are intended to be invested indefinitely outside of the United States. The effective tax rate for the three months ended March 31, 2014, increased due primarily to two significant events that occurred during the three months ended March 31, 2013. First, we settled our federal income tax examination for the years ended December 31, 2007, 2008 and 2009, in which we agreed to certain adjustments and remeasured our unrecognized tax benefits (UTBs) accordingly. Second, the American Taxpayer Relief Act of 2012, enacted during the first quarter of 2013, reinstated the federal research and development (R&D) tax credit for 2012 and 2013. Therefore, our effective tax rate for the three months ended March 31, 2013, included a benefit for the full-year 2012 federal R&D tax credit, recorded as a discrete item in the first quarter of 2013. The federal R&D tax credit expired as of December 31, 2013 and was not reinstated as of March 31, 2014. Therefore, our effective tax rate for the three months ended March 31, 2014, does not include a benefit for the federal R&D tax credit. In addition, the effective tax rates for both periods were reduced by foreign tax credits associated with the Puerto Rico excise tax described below. | |
Puerto Rico imposes an excise tax on the gross intercompany purchase price of goods and services from our manufacturing subsidiary in Puerto Rico. The rate was 2.75% in the first half of 2013 and 4.0% effective July 1, 2013 through December 31, 2017. We account for the excise tax as a manufacturing cost that is capitalized in inventory and expensed in cost of sales when the related products are sold. For U.S. income tax purposes, the excise tax results in foreign tax credits that are generally recognized in our provision for income taxes when the excise tax is incurred. Excluding the impact of the Puerto Rico excise tax, our effective tax rates for the three months ended March 31, 2014, would have been 15.4%, compared with (0.8)% for the corresponding period of the prior year. | |
One or more of our legal entities file income tax returns in the U.S. federal jurisdiction, various U.S. state jurisdictions and certain foreign jurisdictions. Our income tax returns are routinely audited by the tax authorities in those jurisdictions. Significant disputes may arise with these tax authorities involving issues of the timing and amount of income and deductions, the use of tax credits and allocations of income among various tax jurisdictions because of differing interpretations of tax laws and regulations. We are no longer subject to U.S. federal income tax examinations for years ending on or before December 31, 2009, or to California state income tax examinations for years ending on or before December 31, 2005. | |
During the three months ended March 31, 2014, the gross amount of our UTBs increased by approximately $65 million as a result of tax positions taken during the current year. Substantially all of the UTBs as of March 31, 2014, if recognized, would affect our effective tax rate. As of March 31, 2014, we believe it is reasonably possible that our gross liabilities for UTBs may decrease by approximately $70 million within the succeeding 12 months due to the resolution of state audits. |
Earnings_per_share
Earnings per share | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Earnings per share | ' | ||||||||
Earnings per share | |||||||||
The computation of basic earnings per share (EPS) is based on the weighted-average number of our common shares outstanding. The computation of diluted EPS is based on the weighted-average number of our common shares outstanding and dilutive potential common shares, which include principally shares that may be issued under our stock option awards and restricted stock and performance unit awards, determined using the treasury stock method (collectively “dilutive securities”). | |||||||||
The computation for basic and diluted EPS was as follows (in millions, except per share data): | |||||||||
Three months ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Income (Numerator): | |||||||||
Net income for basic and diluted EPS | $ | 1,073 | $ | 1,434 | |||||
Shares (Denominator): | |||||||||
Weighted-average shares for basic EPS | 757 | 751 | |||||||
Effect of dilutive securities | 11 | 13 | |||||||
Weighted-average shares for diluted EPS | 768 | 764 | |||||||
Basic EPS | $ | 1.42 | $ | 1.91 | |||||
Diluted EPS | $ | 1.4 | $ | 1.88 | |||||
For the three months ended March 31, 2014 and 2013, the number of anti-dilutive employee stock-based awards excluded from the computation of diluted EPS was not significant. |
Availableforsale_investments
Available-for-sale investments | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||
Available-for-sale investments | ' | ||||||||||||||||
Available-for-sale investments | |||||||||||||||||
The amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of available-for-sale investments by type of security were as follows (in millions): | |||||||||||||||||
Type of security as of March 31, 2014 | Amortized | Gross | Gross | Estimated | |||||||||||||
cost | unrealized | unrealized | fair | ||||||||||||||
gains | losses | value | |||||||||||||||
U.S. Treasury securities | $ | 4,802 | $ | 4 | $ | (7 | ) | $ | 4,799 | ||||||||
Other government-related debt securities: | |||||||||||||||||
U.S. | 1,005 | — | (6 | ) | 999 | ||||||||||||
Foreign and other | 1,547 | 18 | (23 | ) | 1,542 | ||||||||||||
Corporate debt securities: | |||||||||||||||||
Financial | 3,700 | 29 | (10 | ) | 3,719 | ||||||||||||
Industrial | 3,739 | 42 | (11 | ) | 3,770 | ||||||||||||
Other | 410 | 4 | (1 | ) | 413 | ||||||||||||
Residential mortgage-backed securities | 1,449 | 3 | (16 | ) | 1,436 | ||||||||||||
Other mortgage- and asset-backed securities | 1,519 | — | (48 | ) | 1,471 | ||||||||||||
Money market mutual funds | 3,434 | — | — | 3,434 | |||||||||||||
Other short-term interest-bearing securities | 1,306 | — | — | 1,306 | |||||||||||||
Total interest-bearing securities | 22,911 | 100 | (122 | ) | 22,889 | ||||||||||||
Equity securities | 91 | 17 | — | 108 | |||||||||||||
Total available-for-sale investments | $ | 23,002 | $ | 117 | $ | (122 | ) | $ | 22,997 | ||||||||
Type of security as of December 31, 2013 | Amortized | Gross | Gross | Estimated | |||||||||||||
cost | unrealized | unrealized | fair | ||||||||||||||
gains | losses | value | |||||||||||||||
U.S. Treasury securities | $ | 4,737 | $ | 2 | $ | (9 | ) | $ | 4,730 | ||||||||
Other government-related debt securities: | |||||||||||||||||
U.S. | 1,087 | — | (8 | ) | 1,079 | ||||||||||||
Foreign and other | 1,574 | 13 | (41 | ) | 1,546 | ||||||||||||
Corporate debt securities: | |||||||||||||||||
Financial | 3,667 | 28 | (19 | ) | 3,676 | ||||||||||||
Industrial | 3,745 | 36 | (21 | ) | 3,760 | ||||||||||||
Other | 388 | 4 | (2 | ) | 390 | ||||||||||||
Residential mortgage-backed securities | 1,478 | 3 | (21 | ) | 1,460 | ||||||||||||
Other mortgage- and asset-backed securities | 1,555 | 1 | (45 | ) | 1,511 | ||||||||||||
Money market mutual funds | 3,366 | — | — | 3,366 | |||||||||||||
Other short-term interest-bearing securities | 750 | — | — | 750 | |||||||||||||
Total interest-bearing securities | 22,347 | 87 | (166 | ) | 22,268 | ||||||||||||
Equity securities | 85 | 10 | — | 95 | |||||||||||||
Total available-for-sale investments | $ | 22,432 | $ | 97 | $ | (166 | ) | $ | 22,363 | ||||||||
The fair values of available-for-sale investments by classification in the Condensed Consolidated Balance Sheets were as follows (in millions): | |||||||||||||||||
Classification in the Condensed Consolidated Balance Sheets | March 31, | December 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||||
Cash and cash equivalents | $ | 3,366 | $ | 3,266 | |||||||||||||
Marketable securities | 16,115 | 15,596 | |||||||||||||||
Other assets — noncurrent | 108 | 95 | |||||||||||||||
Restricted investments | 3,408 | 3,406 | |||||||||||||||
Total available-for-sale investments | $ | 22,997 | $ | 22,363 | |||||||||||||
Cash and cash equivalents in the table above excludes cash of $321 million and $539 million as of March 31, 2014, and December 31, 2013, respectively. Restricted investments in the table above excludes $6 million of interest receivable as of both March 31, 2014 and December 31, 2013. | |||||||||||||||||
The fair values of available-for-sale interest-bearing security investments by contractual maturity, except for mortgage- and asset- backed securities that do not have a single maturity date, were as follows (in millions): | |||||||||||||||||
Contractual maturity | March 31, | December 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||||
Maturing in one year or less | $ | 7,107 | $ | 6,799 | |||||||||||||
Maturing after one year through three years | 5,261 | 4,785 | |||||||||||||||
Maturing after three years through five years | 5,947 | 6,057 | |||||||||||||||
Maturing after five years through ten years | 1,667 | 1,656 | |||||||||||||||
Mortgage- and asset-backed securities | 2,907 | 2,971 | |||||||||||||||
Total interest-bearing securities | $ | 22,889 | $ | 22,268 | |||||||||||||
For the three months ended March 31, 2014 and 2013, realized gains totaled $28 million and $85 million, respectively, and realized losses totaled $26 million and $18 million, respectively. The cost of securities sold is based on the specific identification method. Most of our available-for-sale investments that were in an unrealized loss position, which totaled $122 million as of March 31, 2014, have been in a continuous unrealized loss position for less than 12 months. These investments had an aggregate fair value of $8.9 billion as of March 31, 2014. | |||||||||||||||||
The primary objective of our investment portfolio is to enhance overall returns in an efficient manner while maintaining safety of principal, prudent levels of liquidity and acceptable levels of risk. Our investment policy limits interest-bearing security investments to certain types of debt and money market instruments issued by institutions with primarily investment grade credit ratings and places restrictions on maturities and concentration by asset class and issuer. | |||||||||||||||||
We review our available-for-sale investments for other-than-temporary declines in fair value below our cost basis each quarter and whenever events or changes in circumstances indicate that the cost basis of an asset may not be recoverable. This evaluation is based on a number of factors, including the length of time and the extent to which the fair value has been below our cost basis and adverse conditions related specifically to the security, including any changes to the credit rating of the security. As of March 31, 2014, and December 31, 2013, we believe the cost bases for our available-for-sale investments were recoverable in all material respects. |
Inventories
Inventories | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
Inventories | ||||||||
Inventories consisted of the following (in millions): | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Raw materials | $ | 212 | $ | 217 | ||||
Work in process | 1,885 | 2,064 | ||||||
Finished goods | 869 | 738 | ||||||
Total inventories | $ | 2,966 | $ | 3,019 | ||||
Goodwill_and_other_intangible_
Goodwill and other intangible assets | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | ' | |||||||||||||||||||||||
Goodwill and other intangible assets | ||||||||||||||||||||||||
Goodwill | ||||||||||||||||||||||||
The changes in the carrying amounts of goodwill were as follows (in millions): | ||||||||||||||||||||||||
Three months ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Beginning balance | $ | 14,968 | $ | 12,662 | ||||||||||||||||||||
Goodwill related to acquisitions of businesses(1) | (130 | ) | (48 | ) | ||||||||||||||||||||
Currency translation adjustments | (6 | ) | (10 | ) | ||||||||||||||||||||
Ending balance | $ | 14,832 | $ | 12,604 | ||||||||||||||||||||
(1) | Composed primarily of adjustments to goodwill resulting from changes to the acquisition date fair values of net assets acquired in business combinations recorded during their respective measurement periods. | |||||||||||||||||||||||
Identifiable intangible assets | ||||||||||||||||||||||||
Identifiable intangible assets consisted of the following (in millions): | ||||||||||||||||||||||||
March 31, 2014 | 31-Dec-13 | |||||||||||||||||||||||
Gross | Accumulated | Intangible | Gross | Accumulated | Intangible | |||||||||||||||||||
carrying | amortization | assets, net | carrying | amortization | assets, net | |||||||||||||||||||
amount | amount | |||||||||||||||||||||||
Finite-lived intangible assets: | ||||||||||||||||||||||||
Developed product technology rights | $ | 10,421 | $ | (3,553 | ) | $ | 6,868 | $ | 10,130 | $ | (3,347 | ) | $ | 6,783 | ||||||||||
Licensing rights | 3,241 | (463 | ) | 2,778 | 3,241 | (366 | ) | 2,875 | ||||||||||||||||
R&D technology rights | 1,210 | (518 | ) | 692 | 1,207 | (496 | ) | 711 | ||||||||||||||||
Marketing-related rights | 972 | (398 | ) | 574 | 619 | (366 | ) | 253 | ||||||||||||||||
Total finite-lived intangible assets | 15,844 | (4,932 | ) | 10,912 | 15,197 | (4,575 | ) | 10,622 | ||||||||||||||||
Indefinite-lived intangible assets: | ||||||||||||||||||||||||
IPR&D | 2,654 | — | 2,654 | 2,640 | — | 2,640 | ||||||||||||||||||
Total identifiable intangible assets | $ | 18,498 | $ | (4,932 | ) | $ | 13,566 | $ | 17,837 | $ | (4,575 | ) | $ | 13,262 | ||||||||||
Developed product technology rights consist of rights related to marketed products acquired in business combinations. Licensing rights are composed primarily of intangible assets acquired as part of the acquisition of Onyx, capitalized payments to third parties for milestones related to regulatory approvals to commercialize products and up-front payments associated with royalty obligations for marketed products. R&D technology rights consist of technology used in R&D with alternative future uses. Marketing-related intangible assets are composed primarily of rights related to the sale and distribution of marketed products. For information related to the acquisition of certain of these intangible assets, see Note 2, Business combinations. | ||||||||||||||||||||||||
IPR&D consists of R&D projects acquired in a business combination which are not complete due to remaining technological risks and/or lack of receipt of the required regulatory approvals. These projects include Kyprolis®, a treatment for multiple myeloma being developed for use outside the United States (excluding Japan) acquired in the Onyx transaction (see Note 2, Business combinations); velcalcetide, a treatment for secondary hyperparathyroidism in patients with chronic kidney disease who are on dialysis; blinatumomab, a treatment for acute lymphoblastic leukemia (ALL), and talimogene laherparepvec, a treatment for melanoma. | ||||||||||||||||||||||||
For all IPR&D projects, there are major risks and uncertainties associated with the timely and successful completion of development and commercialization of these product candidates, including our ability to confirm their safety and efficacy based on data from clinical trials, our ability to obtain necessary regulatory approvals and our ability to successfully complete these tasks within budgeted costs. We are not able to market a human therapeutic without obtaining regulatory approvals, and such approvals require completing clinical trials that demonstrate a product candidate is safe and effective. In addition, the availability and extent of coverage and reimbursement from third-party payers, including government healthcare programs and private insurance plans, impact the revenues a product can generate. Consequently, the eventual realized value, if any, of these acquired IPR&D projects may vary from their estimated fair values. | ||||||||||||||||||||||||
During the three months ended March 31, 2014 and 2013, we recognized amortization charges associated with our finite-lived intangible assets of $357 million and $117 million, respectively. The total estimated amortization charges for our finite-lived intangible assets for the nine months ended December 31, 2014, and the years ended December 31, 2015, 2016, 2017, 2018 and 2019, are $951 million, $1.3 billion, $1.3 billion, $1.1 billion, $967 million and $894 million, respectively. |
Financing_arrangements
Financing arrangements | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Financing arrangements | ' | |||||||
Financing arrangements | ||||||||
The carrying values and the fixed contractual coupon rates, as applicable, of our long-term borrowings were as follows (in millions): | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
1.875% notes due 2014 (1.875% 2014 Notes) | $ | 1,000 | $ | 1,000 | ||||
4.85% notes due 2014 (4.85% 2014 Notes) | 1,000 | 1,000 | ||||||
2.30% notes due 2016 (2.30% 2016 Notes) | 749 | 749 | ||||||
2.50% notes due 2016 (2.50% 2016 Notes) | 999 | 999 | ||||||
2.125% notes due 2017 (2.125% 2017 Notes) | 1,249 | 1,248 | ||||||
5.85% notes due 2017 (5.85% 2017 Notes) | 1,099 | 1,099 | ||||||
6.15% notes due 2018 (6.15% 2018 Notes) | 500 | 500 | ||||||
Master Repurchase Agreement obligation due 2018 | 3,100 | 3,100 | ||||||
Term Loan due 2018 | 4,750 | 4,875 | ||||||
4.375% euro-denominated notes due 2018 (4.375% 2018 euro Notes) | 757 | 751 | ||||||
5.70% notes due 2019 (5.70% 2019 Notes) | 999 | 999 | ||||||
2.125% euro-denominated notes due 2019 (2.125% 2019 euro Notes) | 927 | 925 | ||||||
4.50% notes due 2020 (4.50% 2020 Notes) | 300 | 300 | ||||||
3.45% notes due 2020 (3.45% 2020 Notes) | 898 | 898 | ||||||
4.10% notes due 2021 (4.10% 2021 Notes) | 998 | 998 | ||||||
3.875% notes due 2021 (3.875% 2021 Notes) | 1,746 | 1,746 | ||||||
3.625% notes due 2022 (3.625% 2022 Notes) | 747 | 747 | ||||||
5.50% pound-sterling-denominated notes due 2026 (5.50% 2026 pound sterling Notes) | 786 | 781 | ||||||
4.00% pound-sterling-denominated notes due 2029 (4.00% 2029 pound sterling Notes) | 1,151 | 1,144 | ||||||
6.375% notes due 2037 (6.375% 2037 Notes) | 899 | 899 | ||||||
6.90% notes due 2038 (6.90% 2038 Notes) | 499 | 499 | ||||||
6.40% notes due 2039 (6.40% 2039 Notes) | 996 | 996 | ||||||
5.75% notes due 2040 (5.75% 2040 Notes) | 697 | 697 | ||||||
4.95% notes due 2041 (4.95% 2041 Notes) | 596 | 596 | ||||||
5.15% notes due 2041 (5.15% 2041 Notes) | 2,233 | 2,233 | ||||||
5.65% notes due 2042 (5.65% 2042 Notes) | 1,244 | 1,244 | ||||||
5.375% notes due 2043 (5.375% 2043 Notes) | 1,000 | 1,000 | ||||||
Other notes | 105 | 105 | ||||||
Total debt | 32,024 | 32,128 | ||||||
Less current portion | (2,505 | ) | (2,505 | ) | ||||
Total noncurrent debt | $ | 29,519 | $ | 29,623 | ||||
Debt repayments | ||||||||
During the three months ended March 31, 2014, we repaid $125 million of principal on our Term Loan Credit Facility. |
Stockholders_equity
Stockholders' equity | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||||
Stockholders' equity | ' | |||||||||||||||||||
Stockholders’ equity | ||||||||||||||||||||
Stock repurchase program | ||||||||||||||||||||
We had no repurchases under our stock repurchase program during the three months ended March 31, 2014. As of March 31, 2014, $1.6 billion remained available under our Board of Directors-approved stock repurchase program. | ||||||||||||||||||||
Dividends | ||||||||||||||||||||
On December 13, 2013, the Board of Directors declared a quarterly cash dividend of $0.61 per share of common stock, which was paid on March 7, 2014. On March 5, 2014, the Board of Directors declared a quarterly cash dividend of $0.61 per share of common stock, which will be paid on June 6, 2014, to all stockholders of record as of the close of business on May 15, 2014. | ||||||||||||||||||||
Accumulated other comprehensive income | ||||||||||||||||||||
The components of accumulated other comprehensive income (AOCI) were as follows (in millions): | ||||||||||||||||||||
Foreign | Cash flow | Available-for-sale | Other | AOCI | ||||||||||||||||
currency | hedges | securities | ||||||||||||||||||
translation | ||||||||||||||||||||
Balance as of December 31, 2013 | $ | (68 | ) | $ | (33 | ) | $ | (43 | ) | $ | (17 | ) | $ | (161 | ) | |||||
Foreign currency translation adjustments | (12 | ) | — | — | — | (12 | ) | |||||||||||||
Unrealized gains | — | 17 | 66 | 1 | 84 | |||||||||||||||
Reclassification adjustments to income | — | (14 | ) | (2 | ) | — | (16 | ) | ||||||||||||
Income taxes | 4 | (1 | ) | (24 | ) | — | (21 | ) | ||||||||||||
Balance as of March 31, 2014 | $ | (76 | ) | $ | (31 | ) | $ | (3 | ) | $ | (16 | ) | $ | (126 | ) | |||||
The reclassifications out of AOCI to Net income were as follows (in millions): | ||||||||||||||||||||
Amounts reclassified out of AOCI | ||||||||||||||||||||
March 31, | ||||||||||||||||||||
Components of AOCI | 2014 | 2013 | Line item affected in the Statements of Income | |||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||
Foreign currency contract losses | $ | — | $ | (4 | ) | Product sales | ||||||||||||||
Cross-currency swap contract gains (losses) | 14 | (140 | ) | Interest and other income, net | ||||||||||||||||
14 | (144 | ) | Total before income tax | |||||||||||||||||
(5 | ) | 53 | Tax (expense)/benefit | |||||||||||||||||
$ | 9 | $ | (91 | ) | Net of taxes | |||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||
Net realized gains | $ | 2 | $ | 67 | Interest and other income, net | |||||||||||||||
(1 | ) | (25 | ) | Tax expense | ||||||||||||||||
$ | 1 | $ | 42 | Net of taxes | ||||||||||||||||
Fair_value_measurement
Fair value measurement | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair value measurement | ' | ||||||||||||||||
Fair value measurement | |||||||||||||||||
To estimate the fair value of our financial assets and liabilities we use valuation approaches within a hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the inputs that market participants would use in pricing the asset or liability and are developed based on the best information available in the circumstances. The fair value hierarchy is divided into three levels based on the source of inputs as follows: | |||||||||||||||||
Level 1 | — | Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access | |||||||||||||||
Level 2 | — | Valuations for which all significant inputs are observable, either directly or indirectly, other than level 1 inputs | |||||||||||||||
Level 3 | — | Valuations based on inputs that are unobservable and significant to the overall fair value measurement | |||||||||||||||
The availability of observable inputs can vary among the various types of financial assets and liabilities. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. In certain cases, the inputs used for measuring fair value may fall into different levels of the fair value hierarchy. In such cases, for financial statement disclosure purposes, the level in the fair value hierarchy within which the fair value measurement is categorized is based on the lowest level of input used that is significant to the overall fair value measurement. | |||||||||||||||||
The fair value of each major class of the Company’s financial assets and liabilities measured at fair value on a recurring basis was as follows (in millions): | |||||||||||||||||
Quoted prices in | Significant | Significant | |||||||||||||||
active markets for | other observable | unobservable | |||||||||||||||
Fair value measurement | identical assets | inputs | inputs | ||||||||||||||
as of March 31, 2014, using: | (Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||
Assets: | |||||||||||||||||
Available-for-sale investments: | |||||||||||||||||
U.S. Treasury securities | $ | 4,799 | $ | — | $ | — | $ | 4,799 | |||||||||
Other government-related debt securities: | |||||||||||||||||
U.S. | — | 999 | — | 999 | |||||||||||||
Foreign and other | — | 1,542 | — | 1,542 | |||||||||||||
Corporate debt securities: | |||||||||||||||||
Financial | — | 3,719 | — | 3,719 | |||||||||||||
Industrial | — | 3,770 | — | 3,770 | |||||||||||||
Other | — | 413 | — | 413 | |||||||||||||
Residential mortgage-backed securities | — | 1,436 | — | 1,436 | |||||||||||||
Other mortgage- and asset-backed securities | — | 1,471 | — | 1,471 | |||||||||||||
Money market mutual funds | 3,434 | — | — | 3,434 | |||||||||||||
Other short-term interest-bearing securities | — | 1,306 | — | 1,306 | |||||||||||||
Equity securities | 108 | — | — | 108 | |||||||||||||
Derivatives: | |||||||||||||||||
Foreign currency contracts | — | 62 | — | 62 | |||||||||||||
Cross-currency swap contracts | — | 195 | — | 195 | |||||||||||||
Interest rate swap contracts | — | 4 | — | 4 | |||||||||||||
Total assets | $ | 8,341 | $ | 14,917 | $ | — | $ | 23,258 | |||||||||
Liabilities: | |||||||||||||||||
Derivatives: | |||||||||||||||||
Foreign currency contracts | $ | — | $ | 101 | $ | — | $ | 101 | |||||||||
Cross-currency swap contracts | — | 2 | — | 2 | |||||||||||||
Interest rate swap contracts | — | 103 | — | 103 | |||||||||||||
Contingent consideration obligations in connection with business combinations | — | — | 596 | 596 | |||||||||||||
Total liabilities | $ | — | $ | 206 | $ | 596 | $ | 802 | |||||||||
Quoted prices in | Significant | Significant | |||||||||||||||
active markets for | other observable | unobservable | |||||||||||||||
Fair value measurement | identical assets | inputs | inputs | ||||||||||||||
as of December 31, 2013, using: | (Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||
Assets: | |||||||||||||||||
Available-for-sale investments: | |||||||||||||||||
U.S. Treasury securities | $ | 4,730 | $ | — | $ | — | $ | 4,730 | |||||||||
Other government-related debt securities: | |||||||||||||||||
U.S. | — | 1,079 | — | 1,079 | |||||||||||||
Foreign and other | — | 1,546 | — | 1,546 | |||||||||||||
Corporate debt securities: | |||||||||||||||||
Financial | — | 3,676 | — | 3,676 | |||||||||||||
Industrial | — | 3,760 | — | 3,760 | |||||||||||||
Other | — | 390 | — | 390 | |||||||||||||
Residential mortgage-backed securities | — | 1,460 | — | 1,460 | |||||||||||||
Other mortgage- and asset-backed securities | — | 1,511 | — | 1,511 | |||||||||||||
Money market mutual funds | 3,366 | — | — | 3,366 | |||||||||||||
Other short-term interest-bearing securities | — | 750 | — | 750 | |||||||||||||
Equity securities | 95 | — | — | 95 | |||||||||||||
Derivatives: | |||||||||||||||||
Foreign currency contracts | — | 53 | — | 53 | |||||||||||||
Cross-currency swap contracts | — | 193 | — | 193 | |||||||||||||
Total assets | $ | 8,191 | $ | 14,418 | $ | — | $ | 22,609 | |||||||||
Liabilities: | |||||||||||||||||
Derivatives: | |||||||||||||||||
Foreign currency contracts | $ | — | $ | 107 | $ | — | $ | 107 | |||||||||
Cross-currency swap contracts | — | 4 | — | 4 | |||||||||||||
Interest rate swap contracts | — | 161 | — | 161 | |||||||||||||
Contingent consideration obligations in connection with business combinations | — | — | 595 | 595 | |||||||||||||
Total liabilities | $ | — | $ | 272 | $ | 595 | $ | 867 | |||||||||
The fair values of our U.S. Treasury securities, money market mutual funds and equity securities are based on quoted market prices in active markets with no valuation adjustment. | |||||||||||||||||
Most of our other government-related and corporate debt securities are investment grade with maturity dates of five years or less from the balance sheet date. Our other government-related debt securities portfolio is composed of securities with weighted-average credit ratings of A by Standard & Poor's Financial Services LLC (S&P), A+ by Moody's Investor Service, Inc. (Moody's) or Fitch, Inc. (Fitch); and our corporate debt securities portfolio has a weighted-average credit rating of A- by S&P, BBB+ by Moody's, and A by Fitch. We estimate the fair values of these securities by taking into consideration valuations obtained from third-party pricing services. The pricing services utilize industry standard valuation models, including both income- and market-based approaches, for which all significant inputs are observable, either directly or indirectly, to estimate fair value. These inputs include reported trades of and broker/dealer quotes on the same or similar securities; issuer credit spreads; benchmark securities; and other observable inputs. | |||||||||||||||||
Our residential mortgage-, other mortgage- and asset-backed securities portfolio is composed entirely of senior tranches, with credit ratings of AAA by S&P, Moody's or Fitch. We estimate the fair values of these securities by taking into consideration valuations obtained from third-party pricing services. The pricing services utilize industry standard valuation models, including both income- and market-based approaches, for which all significant inputs are observable, either directly or indirectly, to estimate fair value. These inputs include reported trades of and broker/dealer quotes on the same or similar securities; issuer credit spreads; benchmark securities; prepayment/default projections based on historical data; and other observable inputs. | |||||||||||||||||
We value our other short-term interest-bearing securities at amortized cost, which approximates fair value given their near term maturity dates. | |||||||||||||||||
All of our foreign currency forward and option derivatives contracts have maturities of three years or less and all are with counterparties that have minimum credit ratings of A- or equivalent by S&P, Moody’s or Fitch. We estimated the fair values of these contracts by taking into consideration valuations obtained from a third-party valuation service that utilizes an income-based industry standard valuation model for which all significant inputs are observable, either directly or indirectly. These inputs include foreign currency rates, London Interbank Offered Rates (LIBOR) cash and swap rates and obligor credit default swap rates. In addition, inputs for our foreign currency option contracts also include implied volatility measures. These inputs, where applicable, are at commonly quoted intervals. See Note 11, Derivative instruments. | |||||||||||||||||
Our cross-currency swap contracts are with counterparties that have minimum credit ratings of A- or equivalent by S&P, Moody’s or Fitch. We estimated the fair values of these contracts by taking into consideration valuations obtained from a third-party valuation service that utilizes an income-based industry standard valuation model for which all significant inputs are observable either directly or indirectly. These inputs include foreign currency exchange rates, LIBOR, swap rates, obligor credit default swap rates and cross-currency basis swap spreads. See Note 11, Derivative instruments. | |||||||||||||||||
Our interest rate swap contracts are with counterparties that have minimum credit ratings of A- or equivalent by S&P, Moody’s or Fitch. We estimated the fair values of these contracts by using an income-based industry standard valuation model for which all significant inputs were observable either directly or indirectly. These inputs included LIBOR, swap rates and obligor credit default swap rates. | |||||||||||||||||
Contingent consideration obligations | |||||||||||||||||
We have incurred contingent consideration obligations as the result of our acquisition of a business and upon the assumption of contingent consideration obligations incurred by an acquired company discussed below. These contingent consideration obligations are recorded at their estimated fair values, and we revalue these obligations each reporting period until the related contingencies are resolved. Changes in fair values of contingent consideration obligations are recognized in Other operating expenses in the Condensed Consolidated Statements of Income. | |||||||||||||||||
The changes in carrying amounts of contingent consideration obligations were as follows (in millions): | |||||||||||||||||
Three months ended | |||||||||||||||||
March 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Beginning balance | $ | 595 | $ | 221 | |||||||||||||
Net changes in valuation | 1 | 1 | |||||||||||||||
Ending balance | $ | 596 | $ | 222 | |||||||||||||
As a result of our acquisition of BioVex Group, Inc. (BioVex) in March 2011, we are obligated to pay its former shareholders up to $575 million of additional consideration contingent upon achieving up to eight separate regulatory and sales-related milestones with regard to talimogene laherparepvec, which was acquired in the acquisition and is currently in phase 3 clinical development for the treatment of melanoma. The three largest of these potential payments are $125 million each, including the amount due if a Biologics License Application is filed with the U.S. Food and Drug Administration (FDA). Potential payments are also due upon the first commercial sale in each of the United States and the European Union (EU) following receipt of marketing approval which includes use of the product in specified patient populations and upon achievement of specified levels of sales within specified periods of time. The fair value measurements of these obligations are based on significant unobservable inputs, including the estimated probabilities and timing of achieving the related regulatory and commercial events in connection with these milestones and, as applicable, estimated annual sales. Significant changes which increase or decrease the probabilities of achieving the related regulatory and commercial events, shorten or lengthen the time required to achieve such events, or increase of decrease estimated annual sales would result in corresponding increases or decreases in the fair values of these obligations, as applicable. | |||||||||||||||||
We estimate the fair values of the obligations to the former shareholders of BioVex by using a combination of probability-adjusted discounted cash flows, option pricing techniques and a simulation model of expected annual sales. Quarterly, management in our R&D and commercial sales organizations review key assumptions used in the fair value measurements of these obligations. In April 2014, we announced top-line results from the primary overall survival (OS) analysis of a phase 3 trial in melanoma. We are currently reviewing the results from this study with clinicians, regulators and payers to determine the best course forward. However, during the quarter ended March 31, 2014, there were no significant changes in underlying key assumptions, and there was no change in the estimated aggregate fair value of these contingent consideration obligations of $334 million. | |||||||||||||||||
We assumed contingent consideration obligations of $261 million upon the acquisition of Onyx arising from Onyx's 2009 acquisition of Proteolix, Inc. As of March 31, 2014, there are two separate milestone payments of $150 million each which would be triggered if Kyprolis® receives specified marketing approvals for relapsed multiple myeloma on or before March 31, 2016, by each of the FDA and the European Medicines Agency. The fair value measurements of these obligations are based on significant unobservable inputs, including the estimated probabilities and timing of achieving the related regulatory approvals, which are reviewed quarterly. Significant changes which increase or decrease the probabilities of receiving regulatory approvals or shorten or lengthen the time required to achieve such approvals would result in corresponding increases or decreases in the fair values of these obligations. We estimate the fair values of contingent obligations to the former shareholders of Proteolix, Inc. by using probability-adjusted discounted cash flows. The estimated aggregate fair value of the contingent consideration obligations increased by $1 million during the three months ended March 31, 2014. | |||||||||||||||||
There have been no transfers of assets or liabilities between the fair value measurement levels, and there were no material remeasurements to fair value during the three months ended March 31, 2014 and 2013, of assets and liabilities that are not measured at fair value on a recurring basis. | |||||||||||||||||
Summary of the fair value of other financial instruments | |||||||||||||||||
Cash equivalents | |||||||||||||||||
The estimated fair values of cash equivalents approximate their carrying values due to the short-term nature of these financial instruments. | |||||||||||||||||
Borrowings | |||||||||||||||||
We estimated the fair value of our long-term debt (Level 2) by taking into consideration indicative prices obtained from a third-party financial institution that utilizes industry standard valuation models, including both income- and market-based approaches, for which all significant inputs are observable either directly or indirectly. These inputs include reported trades of and broker/dealer quotes on the same or similar securities; credit spreads; benchmark yields; foreign currency exchange rates, as applicable; and other observable inputs. As of March 31, 2014, and December 31, 2013, the aggregate fair values of our long-term debt were $33.8 billion and $33.5 billion, respectively, and the carrying values were $32.0 billion and $32.1 billion, respectively. |
Derivative_instruments
Derivative instruments | 3 Months Ended | ||||||||||||||
Mar. 31, 2014 | |||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||
Derivative instruments | ' | ||||||||||||||
Derivative instruments | |||||||||||||||
The Company is exposed to foreign currency exchange rate and interest rate risks related to its business operations. To reduce our risks related to these exposures, we utilize or have utilized certain derivative instruments, including foreign currency forward, foreign currency option, cross-currency swap, forward interest rate and interest rate swap contracts. We do not use derivatives for speculative trading purposes. | |||||||||||||||
Cash flow hedges | |||||||||||||||
We are exposed to possible changes in the values of certain anticipated foreign currency cash flows resulting from changes in foreign currency exchange rates, associated primarily with our euro-denominated international product sales. Increases and decreases in the cash flows associated with our international product sales due to movements in foreign currency exchange rates are offset partially by the corresponding increases and decreases in our international operating expenses resulting from these foreign currency exchange rate movements. To further reduce our exposure to foreign currency exchange rate fluctuations on our international product sales, we enter into foreign currency forward and option contracts to hedge a portion of our projected international product sales primarily over a three-year time horizon, with, at any given point in time, a higher percentage of nearer-term projected product sales being hedged than in successive periods. As of March 31, 2014, and December 31, 2013, we had open foreign currency forward contracts with notional amounts of $3.9 billion and $4.0 billion, respectively, and open foreign currency option contracts with notional amounts of $366 million and $516 million, respectively. These foreign currency forward and option contracts, primarily euro based, have been designated as cash flow hedges, and accordingly, the effective portions of the unrealized gains and losses on these contracts are reported in AOCI in the Condensed Consolidated Balance Sheets and reclassified to earnings in the same periods during which the hedged transactions affect earnings. | |||||||||||||||
To hedge our exposure to foreign currency exchange rate risk associated with certain of our long-term notes denominated in foreign currencies, we entered into cross-currency swap contracts. Under the terms of these contracts, we paid euros/pounds sterling and received U.S. dollars for the notional amounts at the inception of the contracts, and we exchange interest payments based on these notional amounts at fixed rates over the lives of the contracts in which we pay U.S. dollars and receive euros/pounds sterling. In addition, we will pay U.S. dollars to and receive euros/pounds sterling from the counterparties at the maturities of the contracts for these same notional amounts. The terms of these contracts correspond to the related hedged notes, effectively converting the interest payments and principal repayment on these notes from euros/pounds sterling to U.S. dollars. These cross-currency swap contracts have been designated as cash flow hedges, and accordingly, the effective portions of the unrealized gains and losses on these contracts are reported in AOCI and reclassified to earnings in the same periods during which the hedged debt affects earnings. The notional amounts and interest rates of our cross-currency swaps are as follows (notional amounts in millions): | |||||||||||||||
Foreign currency | U.S. dollars | ||||||||||||||
Hedged notes | Notional Amount | Interest rate | Notional Amount | Interest rate | |||||||||||
2.125% 2019 euro Notes | € | 675 | 2.125 | % | $ | 864 | 2.6 | % | |||||||
5.50% 2026 pound sterling Notes | £ | 475 | 5.5 | % | $ | 748 | 5.8 | % | |||||||
4.00% 2029 pound sterling Notes | £ | 700 | 4 | % | $ | 1,122 | 4.3 | % | |||||||
The effective portions of the unrealized gain/(loss) recognized in other comprehensive income for our derivative instruments designated as cash flow hedges were as follows (in millions): | |||||||||||||||
Three months ended | |||||||||||||||
March 31, | |||||||||||||||
Derivatives in cash flow hedging relationships | 2014 | 2013 | |||||||||||||
Foreign currency contracts | $ | 13 | $ | 100 | |||||||||||
Cross-currency swap contracts | 4 | (125 | ) | ||||||||||||
Total | $ | 17 | $ | (25 | ) | ||||||||||
The locations in the Condensed Consolidated Statements of Income and the effective portions of the gain/(loss) reclassified out of AOCI into earnings for our derivative instruments designated as cash flow hedges were as follows (in millions): | |||||||||||||||
Three months ended | |||||||||||||||
March 31, | |||||||||||||||
Derivatives in cash flow hedging relationships | Statements of Income location | 2014 | 2013 | ||||||||||||
Foreign currency contracts | Product sales | $ | — | $ | (4 | ) | |||||||||
Cross-currency swap contracts | Interest and other income, net | 14 | (140 | ) | |||||||||||
Total | $ | 14 | $ | (144 | ) | ||||||||||
No portions of our cash flow hedge contracts are excluded from the assessment of hedge effectiveness, and the gains and losses of the ineffective portions of these hedging instruments were not material for the three months ended March 31, 2014 and 2013. As of March 31, 2014, the amounts expected to be reclassified out of AOCI into earnings over the next 12 months are approximately $39 million of net losses on our foreign currency and cross-currency swap contracts and approximately $1 million of losses on forward interest rate contracts. | |||||||||||||||
Fair value hedges | |||||||||||||||
To achieve a desired mix of fixed and floating interest rates on our long-term debt, we entered into interest rate swap contracts, which qualified and are designated as fair value hedges. The terms of these interest rate swap contracts correspond to the related hedged debt instruments and effectively converted a fixed interest rate coupon to a floating LIBOR-based coupon over the lives of the respective notes. During the year ended December 31, 2013, we entered into interest rate swap contracts with an aggregate notional amount of $4.4 billion with respect to our 3.45% 2020 Notes, 4.10% 2021 Notes, 3.875% 2021 Notes and 3.625% 2022 Notes. The contracts have rates that range from three-month LIBOR plus 1.1% to three-month LIBOR plus 2.0%. | |||||||||||||||
For derivative instruments that are designated and qualify as fair value hedges, the unrealized gain or loss on the derivative resulting from the change in fair value during the period as well as the offsetting unrealized loss or gain of the hedged item resulting from the change in fair value during the period attributable to the hedged risk is recognized in current earnings. For the three months ended March 31, 2014 and 2013, we included the unrealized losses on the hedged debt of $62 million and $22 million, respectively, in the same line item, Interest expense, net, in the Condensed Consolidated Statements of Income, as the offsetting unrealized gains of $62 million and $22 million, respectively, on the related interest rate swap agreements. | |||||||||||||||
Derivatives not designated as hedges | |||||||||||||||
We enter into foreign currency forward contracts that are not designated as hedging transactions to reduce our exposure to foreign currency fluctuations of certain assets and liabilities denominated in foreign currencies. These exposures are hedged on a month-to-month basis. As of March 31, 2014, and December 31, 2013, the total notional amounts of these foreign currency forward contracts were $977 million and $999 million, respectively. | |||||||||||||||
The location in the Condensed Consolidated Statements of Income and the amount of gain/(loss) recognized in earnings for our derivative instruments not designated as hedging instruments were as follows (in millions): | |||||||||||||||
Three months ended | |||||||||||||||
March 31, | |||||||||||||||
Derivatives not designated as hedging instruments | Statements of Income location | 2014 | 2013 | ||||||||||||
Foreign currency contracts | Interest and other income, net | $ | 2 | $ | (16 | ) | |||||||||
The fair values of derivatives included in the Condensed Consolidated Balance Sheets were as follows (in millions): | |||||||||||||||
Derivative assets | Derivative liabilities | ||||||||||||||
31-Mar-14 | Balance Sheet location | Fair value | Balance Sheet location | Fair value | |||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||
Cross-currency swap contracts | Other current assets/ Other noncurrent assets | $ | 195 | Accrued liabilities/ Other noncurrent liabilities | $ | 2 | |||||||||
Foreign currency contracts | Other current assets/ Other noncurrent assets | 60 | Accrued liabilities/ Other noncurrent liabilities | 99 | |||||||||||
Interest rate swap contracts | Other current assets/ Other noncurrent assets | 4 | Accrued liabilities/ Other noncurrent liabilities | 103 | |||||||||||
Total derivatives designated as hedging instruments | 259 | 204 | |||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||
Foreign currency contracts | Other current assets | 2 | Accrued liabilities | 2 | |||||||||||
Total derivatives not designated as hedging instruments | 2 | 2 | |||||||||||||
Total derivatives | $ | 261 | $ | 206 | |||||||||||
Derivative assets | Derivative liabilities | ||||||||||||||
31-Dec-13 | Balance Sheet location | Fair value | Balance Sheet location | Fair value | |||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||
Cross-currency swap contracts | Other current assets/ Other noncurrent assets | $ | 193 | Accrued liabilities/ Other noncurrent liabilities | $ | 4 | |||||||||
Foreign currency contracts | Other current assets/ Other noncurrent assets | 53 | Accrued liabilities/ Other noncurrent liabilities | 104 | |||||||||||
Interest rate swap contracts | Other current assets/ Other noncurrent assets | — | Accrued liabilities/ Other noncurrent liabilities | 161 | |||||||||||
Total derivatives designated as hedging instruments | 246 | 269 | |||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||
Foreign currency contracts | Other current assets | — | Accrued liabilities | 3 | |||||||||||
Total derivatives not designated as hedging instruments | — | 3 | |||||||||||||
Total derivatives | $ | 246 | $ | 272 | |||||||||||
Our derivative contracts that were in liability positions as of March 31, 2014, contain certain credit-risk-related contingent provisions that would be triggered if: (i) we were to undergo a change in control and (ii) our or the surviving entity’s creditworthiness deteriorates, which is generally defined as having either a credit rating that is below investment grade or a materially weaker creditworthiness after the change in control. If these events were to occur, the counterparties would have the right, but not the obligation, to close the contracts under early-termination provisions. In such circumstances, the counterparties could request immediate settlement of these contracts for amounts that approximate the then current fair values of the contracts. In addition, our derivative contracts are not subject to any type of master netting arrangement, and amounts due to or from a counterparty under these contracts may only be offset against other amounts due to or from the same counterparty if an event of default or termination, as defined, were to occur. | |||||||||||||||
The cash flow effects of our derivatives contracts for the three months ended March 31, 2014 and 2013, are included within Net cash provided by operating activities in the Condensed Consolidated Statements of Cash Flows. |
Contingencies_and_commitments
Contingencies and commitments | 3 Months Ended |
Mar. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Contingencies and commitments | ' |
Contingencies and commitments | |
Contingencies | |
In the ordinary course of business, we are involved in various legal proceedings and other matters, including those discussed in this Note, that are complex in nature and have outcomes that are difficult to predict. See Note 18, Contingencies and commitments to our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2013, for further discussion of certain of our legal proceedings and other matters. | |
We record accruals for loss contingencies to the extent that we conclude that it is probable that a liability has been incurred and the amount of the related loss can be reasonably estimated. We evaluate, on a quarterly basis, developments in legal proceedings and other matters that could cause an increase or decrease in the amount of the liability that has been accrued previously. | |
Our legal proceedings range from cases brought by a single plaintiff to class actions with thousands of putative class members. These legal proceedings, as well as other matters, involve various aspects of our business and a variety of claims (including but not limited to patent infringement, marketing, pricing and trade practices and securities law), some of which present novel factual allegations and/or unique legal theories. In each of the matters described in this filing or in Note 18, Contingencies and commitments to our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2013, plaintiffs seek an award of a not-yet-quantified amount of damages or an amount that is not material. In addition, a number of the matters pending against us are at very early stages of the legal process (which in complex proceedings of the sort faced by us often extend for several years). As a result, none of the matters described in this filing have progressed sufficiently through discovery and/or development of important factual information and legal issues to enable us to estimate a range of possible loss, if any, or such amounts are not material. While it is not possible to accurately predict or determine the eventual outcomes of these items, an adverse determination in one or more of these items currently pending could have a material adverse effect on our consolidated results of operations, financial position or cash flows. | |
Certain recent developments concerning our legal proceedings and other matters are discussed below: | |
Onyx Litigation | |
On March 21, 2014, plaintiff Phil Rosen filed a motion seeking to certify a class and to be designated class representative in this consolidated class action matter pending against the former members of the board of directors of Onyx in which the plaintiffs allege, among other things, that the Onyx director defendants breached their fiduciary duties to Onyx shareholders in connection with the sale of Onyx to Amgen. | |
Federal Securities Litigation - In re Amgen Inc. Securities Litigation | |
On April 14, 2014, the U.S. District Court for the Central District of California entered an order allowing plaintiffs leave to file a second consolidated amended class action complaint in this securities class action lawsuit. While the new complaint was filed under seal, like the first consolidated class action complaint the new complaint alleges that Amgen and certain of its officers and directors (the Federal Defendants) made false statements that resulted in: (i) deceiving the investing public regarding Amgen's prospects and business; (ii) artificially inflating the prices of Amgen's publicly traded securities and (iii) causing plaintiff and other members of the class to purchase Amgen publicly traded securities at inflated prices. In addition, like the first consolidated class action complaint, the new complaint makes off-label marketing allegations that, throughout the class period, the Federal Defendants improperly marketed Aranesp® (darbepoetin alfa) and EPOGEN® (epoetin alfa) for off-label uses while aware that there were alleged safety signals with these products. The named defendants have not changed and the alleged class period remains the same. Plaintiffs continue to seek compensatory damages, legal fees and other relief deemed proper. |
Subsequent_event
Subsequent event | 3 Months Ended |
Mar. 31, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent event | ' |
Subsequent event | |
On April 1, 2014, we entered into a Termination and Transition Agreement (the Transition Agreement) with Glaxo Group Limited (Glaxo) which terminated, in part, and amended, in part, our agreement with Glaxo (the Collaboration Agreement) for the commercialization of denosumab for osteoporosis indications in certain geographic territories, including the EU, Switzerland, Australia, Norway, Russia and Mexico. The Transition Agreement terminates the Collaboration Agreement for all countries and regions, except for Australia. All commercial activities assigned to Glaxo under the Collaboration Agreement other than those in Australia will be transitioned back to us no later than December 31, 2014. In exchange for the early termination (except Australia) of the Collaboration Agreement, we will make payments to Glaxo totaling $275 million. | |
The Transition Agreement does not change the terms of the related Expansion Agreement under which Glaxo will commercialize denosumab for all indications in certain other geographic territories. | |
We evaluated whether the Transition Agreement should be accounted for as a business combination and concluded that the agreement represents the reacquisition of a previously shared economic interest, which qualifies as an asset acquisition. |
Summary_of_significant_account1
Summary of significant accounting policies (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Business | ' |
Business | |
Amgen Inc. (including its subsidiaries, referred to as “Amgen,” “the Company,” “we,” “our” or “us”) is a global biotechnology pioneer that discovers, develops, manufactures and delivers innovative human therapeutics. We operate in one business segment: human therapeutics. | |
Basis of presentation | ' |
Basis of presentation | |
The financial information for the three months ended March 31, 2014 and 2013, is unaudited but includes all adjustments (consisting of only normal recurring adjustments, unless otherwise indicated), which Amgen considers necessary for a fair presentation of its condensed consolidated results of operations for those periods. Interim results are not necessarily indicative of results for the full fiscal year. | |
The condensed consolidated financial statements should be read in conjunction with our consolidated financial statements and the notes thereto contained in our Annual Report on Form 10-K for the year ended December 31, 2013 | |
Principles of consolidation | ' |
Principles of consolidation | |
The condensed consolidated financial statements include the accounts of Amgen as well as its majority-owned subsidiaries. We do not have any significant interests in any variable interest entities. All material intercompany transactions and balances have been eliminated in consolidation. | |
Use of estimates | ' |
Use of estimates | |
The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States (GAAP) requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results may differ from those estimates. | |
Property, plant and equipment, net | ' |
Property, plant and equipment, net | |
Property, plant and equipment is recorded at historical cost, net of accumulated depreciation and amortization of $7.1 billion and $6.9 billion as of March 31, 2014, and December 31, 2013, respectively. | |
Restricted investments | ' |
Restricted investments | |
We have restricted investments on our Condensed Consolidated Balance Sheets that are owned by ATL Holdings Limited (ATL Holdings), a wholly-owned subsidiary. ATL Holdings is an entity distinct from the Company and its other subsidiaries, with separate assets and liabilities. Because certain third parties own Class A preferred shares of ATL Holdings, this entity is required to hold restricted investments, which were composed of interest-bearing securities, cash and related interest receivable as of March 31, 2014 and December 31, 2013. |
Business_combinations_Tables
Business combinations (Tables) | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Onyx Pharmaceuticals, Inc. [Member] | ' | |||
Business Acquisition [Line Items] | ' | |||
Aggregate acquisition date consideration to acquire an entity | ' | |||
The aggregate consideration to acquire Onyx was paid in cash and consisted of (in millions): | ||||
Total consideration transferred | $ | 9,517 | ||
Compensation expense | 197 | |||
Total cash paid | $ | 9,714 | ||
Schedule of recognized identified assets acquired and liabilities assumed | ' | |||
The consideration to acquire Onyx was allocated preliminarily to the acquisition date fair values of assets acquired and liabilities assumed as follows (in millions): | ||||
Cash and cash equivalents | $ | 319 | ||
Marketable securities | 337 | |||
Inventories | 170 | |||
Indefinite-lived intangible assets - In-process research and development (IPR&D) | 1,170 | |||
Finite-lived intangible assets - Developed product technology rights | 6,190 | |||
Finite-lived intangible assets - Licensing rights | 2,792 | |||
Goodwill | 2,393 | |||
Convertible debt | (742 | ) | ||
Assumed contingent consideration | (261 | ) | ||
Deferred income taxes, net | (2,993 | ) | ||
Other assets (liabilities), net | 142 | |||
Total consideration | $ | 9,517 | ||
Product Rights [Member] | ' | |||
Business Acquisition [Line Items] | ' | |||
Aggregate acquisition date consideration to acquire an entity | ' | |||
The aggregate consideration transferred consisted of (in millions): | ||||
Total consideration transferred or to be transferred | $ | 497 | ||
Settlement of preexisting relationship at fair value | (99 | ) | ||
Total consideration transferred to acquire the Product Rights | $ | 398 | ||
Schedule of recognized identified assets acquired and liabilities assumed | ' | |||
The consideration to acquire the Product Rights was allocated to the acquisition date fair values of assets acquired as follows (in millions): | ||||
Finite-lived intangible assets - Marketing-related rights | $ | 363 | ||
Finite-lived intangible assets - Developed product technology rights | 11 | |||
Goodwill | 3 | |||
Other assets | 21 | |||
Total consideration | $ | 398 | ||
Earnings_per_share_Tables
Earnings per share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Computation for basic and diluted earnings per share | ' | ||||||||
The computation for basic and diluted EPS was as follows (in millions, except per share data): | |||||||||
Three months ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Income (Numerator): | |||||||||
Net income for basic and diluted EPS | $ | 1,073 | $ | 1,434 | |||||
Shares (Denominator): | |||||||||
Weighted-average shares for basic EPS | 757 | 751 | |||||||
Effect of dilutive securities | 11 | 13 | |||||||
Weighted-average shares for diluted EPS | 768 | 764 | |||||||
Basic EPS | $ | 1.42 | $ | 1.91 | |||||
Diluted EPS | $ | 1.4 | $ | 1.88 | |||||
Availableforsale_investments_T
Available-for-sale investments (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||
Amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of available-for-sale investments by type of security | ' | ||||||||||||||||
The amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of available-for-sale investments by type of security were as follows (in millions): | |||||||||||||||||
Type of security as of March 31, 2014 | Amortized | Gross | Gross | Estimated | |||||||||||||
cost | unrealized | unrealized | fair | ||||||||||||||
gains | losses | value | |||||||||||||||
U.S. Treasury securities | $ | 4,802 | $ | 4 | $ | (7 | ) | $ | 4,799 | ||||||||
Other government-related debt securities: | |||||||||||||||||
U.S. | 1,005 | — | (6 | ) | 999 | ||||||||||||
Foreign and other | 1,547 | 18 | (23 | ) | 1,542 | ||||||||||||
Corporate debt securities: | |||||||||||||||||
Financial | 3,700 | 29 | (10 | ) | 3,719 | ||||||||||||
Industrial | 3,739 | 42 | (11 | ) | 3,770 | ||||||||||||
Other | 410 | 4 | (1 | ) | 413 | ||||||||||||
Residential mortgage-backed securities | 1,449 | 3 | (16 | ) | 1,436 | ||||||||||||
Other mortgage- and asset-backed securities | 1,519 | — | (48 | ) | 1,471 | ||||||||||||
Money market mutual funds | 3,434 | — | — | 3,434 | |||||||||||||
Other short-term interest-bearing securities | 1,306 | — | — | 1,306 | |||||||||||||
Total interest-bearing securities | 22,911 | 100 | (122 | ) | 22,889 | ||||||||||||
Equity securities | 91 | 17 | — | 108 | |||||||||||||
Total available-for-sale investments | $ | 23,002 | $ | 117 | $ | (122 | ) | $ | 22,997 | ||||||||
Type of security as of December 31, 2013 | Amortized | Gross | Gross | Estimated | |||||||||||||
cost | unrealized | unrealized | fair | ||||||||||||||
gains | losses | value | |||||||||||||||
U.S. Treasury securities | $ | 4,737 | $ | 2 | $ | (9 | ) | $ | 4,730 | ||||||||
Other government-related debt securities: | |||||||||||||||||
U.S. | 1,087 | — | (8 | ) | 1,079 | ||||||||||||
Foreign and other | 1,574 | 13 | (41 | ) | 1,546 | ||||||||||||
Corporate debt securities: | |||||||||||||||||
Financial | 3,667 | 28 | (19 | ) | 3,676 | ||||||||||||
Industrial | 3,745 | 36 | (21 | ) | 3,760 | ||||||||||||
Other | 388 | 4 | (2 | ) | 390 | ||||||||||||
Residential mortgage-backed securities | 1,478 | 3 | (21 | ) | 1,460 | ||||||||||||
Other mortgage- and asset-backed securities | 1,555 | 1 | (45 | ) | 1,511 | ||||||||||||
Money market mutual funds | 3,366 | — | — | 3,366 | |||||||||||||
Other short-term interest-bearing securities | 750 | — | — | 750 | |||||||||||||
Total interest-bearing securities | 22,347 | 87 | (166 | ) | 22,268 | ||||||||||||
Equity securities | 85 | 10 | — | 95 | |||||||||||||
Total available-for-sale investments | $ | 22,432 | $ | 97 | $ | (166 | ) | $ | 22,363 | ||||||||
Fair values of available-for-sale investments by classification in the Consolidated Balance Sheets | ' | ||||||||||||||||
The fair values of available-for-sale investments by classification in the Condensed Consolidated Balance Sheets were as follows (in millions): | |||||||||||||||||
Classification in the Condensed Consolidated Balance Sheets | March 31, | December 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||||
Cash and cash equivalents | $ | 3,366 | $ | 3,266 | |||||||||||||
Marketable securities | 16,115 | 15,596 | |||||||||||||||
Other assets — noncurrent | 108 | 95 | |||||||||||||||
Restricted investments | 3,408 | 3,406 | |||||||||||||||
Total available-for-sale investments | $ | 22,997 | $ | 22,363 | |||||||||||||
Fair values of available-for-sale interest-bearing security investments by contractual maturity | ' | ||||||||||||||||
The fair values of available-for-sale interest-bearing security investments by contractual maturity, except for mortgage- and asset- backed securities that do not have a single maturity date, were as follows (in millions): | |||||||||||||||||
Contractual maturity | March 31, | December 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||||
Maturing in one year or less | $ | 7,107 | $ | 6,799 | |||||||||||||
Maturing after one year through three years | 5,261 | 4,785 | |||||||||||||||
Maturing after three years through five years | 5,947 | 6,057 | |||||||||||||||
Maturing after five years through ten years | 1,667 | 1,656 | |||||||||||||||
Mortgage- and asset-backed securities | 2,907 | 2,971 | |||||||||||||||
Total interest-bearing securities | $ | 22,889 | $ | 22,268 | |||||||||||||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
Inventories consisted of the following (in millions): | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Raw materials | $ | 212 | $ | 217 | ||||
Work in process | 1,885 | 2,064 | ||||||
Finished goods | 869 | 738 | ||||||
Total inventories | $ | 2,966 | $ | 3,019 | ||||
Goodwill_and_other_intangible_1
Goodwill and other intangible assets (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||
Schedule of goodwill | ' | |||||||||||||||||||||||
The changes in the carrying amounts of goodwill were as follows (in millions): | ||||||||||||||||||||||||
Three months ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Beginning balance | $ | 14,968 | $ | 12,662 | ||||||||||||||||||||
Goodwill related to acquisitions of businesses(1) | (130 | ) | (48 | ) | ||||||||||||||||||||
Currency translation adjustments | (6 | ) | (10 | ) | ||||||||||||||||||||
Ending balance | $ | 14,832 | $ | 12,604 | ||||||||||||||||||||
Schedule of identifiable intangible assets | ' | |||||||||||||||||||||||
Identifiable intangible assets consisted of the following (in millions): | ||||||||||||||||||||||||
March 31, 2014 | 31-Dec-13 | |||||||||||||||||||||||
Gross | Accumulated | Intangible | Gross | Accumulated | Intangible | |||||||||||||||||||
carrying | amortization | assets, net | carrying | amortization | assets, net | |||||||||||||||||||
amount | amount | |||||||||||||||||||||||
Finite-lived intangible assets: | ||||||||||||||||||||||||
Developed product technology rights | $ | 10,421 | $ | (3,553 | ) | $ | 6,868 | $ | 10,130 | $ | (3,347 | ) | $ | 6,783 | ||||||||||
Licensing rights | 3,241 | (463 | ) | 2,778 | 3,241 | (366 | ) | 2,875 | ||||||||||||||||
R&D technology rights | 1,210 | (518 | ) | 692 | 1,207 | (496 | ) | 711 | ||||||||||||||||
Marketing-related rights | 972 | (398 | ) | 574 | 619 | (366 | ) | 253 | ||||||||||||||||
Total finite-lived intangible assets | 15,844 | (4,932 | ) | 10,912 | 15,197 | (4,575 | ) | 10,622 | ||||||||||||||||
Indefinite-lived intangible assets: | ||||||||||||||||||||||||
IPR&D | 2,654 | — | 2,654 | 2,640 | — | 2,640 | ||||||||||||||||||
Total identifiable intangible assets | $ | 18,498 | $ | (4,932 | ) | $ | 13,566 | $ | 17,837 | $ | (4,575 | ) | $ | 13,262 | ||||||||||
Financing_arrangements_Tables
Financing arrangements (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Carrying values and the fixed contractual coupon rates of long-term borrowings | ' | |||||||
The carrying values and the fixed contractual coupon rates, as applicable, of our long-term borrowings were as follows (in millions): | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
1.875% notes due 2014 (1.875% 2014 Notes) | $ | 1,000 | $ | 1,000 | ||||
4.85% notes due 2014 (4.85% 2014 Notes) | 1,000 | 1,000 | ||||||
2.30% notes due 2016 (2.30% 2016 Notes) | 749 | 749 | ||||||
2.50% notes due 2016 (2.50% 2016 Notes) | 999 | 999 | ||||||
2.125% notes due 2017 (2.125% 2017 Notes) | 1,249 | 1,248 | ||||||
5.85% notes due 2017 (5.85% 2017 Notes) | 1,099 | 1,099 | ||||||
6.15% notes due 2018 (6.15% 2018 Notes) | 500 | 500 | ||||||
Master Repurchase Agreement obligation due 2018 | 3,100 | 3,100 | ||||||
Term Loan due 2018 | 4,750 | 4,875 | ||||||
4.375% euro-denominated notes due 2018 (4.375% 2018 euro Notes) | 757 | 751 | ||||||
5.70% notes due 2019 (5.70% 2019 Notes) | 999 | 999 | ||||||
2.125% euro-denominated notes due 2019 (2.125% 2019 euro Notes) | 927 | 925 | ||||||
4.50% notes due 2020 (4.50% 2020 Notes) | 300 | 300 | ||||||
3.45% notes due 2020 (3.45% 2020 Notes) | 898 | 898 | ||||||
4.10% notes due 2021 (4.10% 2021 Notes) | 998 | 998 | ||||||
3.875% notes due 2021 (3.875% 2021 Notes) | 1,746 | 1,746 | ||||||
3.625% notes due 2022 (3.625% 2022 Notes) | 747 | 747 | ||||||
5.50% pound-sterling-denominated notes due 2026 (5.50% 2026 pound sterling Notes) | 786 | 781 | ||||||
4.00% pound-sterling-denominated notes due 2029 (4.00% 2029 pound sterling Notes) | 1,151 | 1,144 | ||||||
6.375% notes due 2037 (6.375% 2037 Notes) | 899 | 899 | ||||||
6.90% notes due 2038 (6.90% 2038 Notes) | 499 | 499 | ||||||
6.40% notes due 2039 (6.40% 2039 Notes) | 996 | 996 | ||||||
5.75% notes due 2040 (5.75% 2040 Notes) | 697 | 697 | ||||||
4.95% notes due 2041 (4.95% 2041 Notes) | 596 | 596 | ||||||
5.15% notes due 2041 (5.15% 2041 Notes) | 2,233 | 2,233 | ||||||
5.65% notes due 2042 (5.65% 2042 Notes) | 1,244 | 1,244 | ||||||
5.375% notes due 2043 (5.375% 2043 Notes) | 1,000 | 1,000 | ||||||
Other notes | 105 | 105 | ||||||
Total debt | 32,024 | 32,128 | ||||||
Less current portion | (2,505 | ) | (2,505 | ) | ||||
Total noncurrent debt | $ | 29,519 | $ | 29,623 | ||||
Stockholders_equity_Tables
Stockholders' equity (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||||
Components of Accumulated Other Comprehensive Income | ' | |||||||||||||||||||
The components of accumulated other comprehensive income (AOCI) were as follows (in millions): | ||||||||||||||||||||
Foreign | Cash flow | Available-for-sale | Other | AOCI | ||||||||||||||||
currency | hedges | securities | ||||||||||||||||||
translation | ||||||||||||||||||||
Balance as of December 31, 2013 | $ | (68 | ) | $ | (33 | ) | $ | (43 | ) | $ | (17 | ) | $ | (161 | ) | |||||
Foreign currency translation adjustments | (12 | ) | — | — | — | (12 | ) | |||||||||||||
Unrealized gains | — | 17 | 66 | 1 | 84 | |||||||||||||||
Reclassification adjustments to income | — | (14 | ) | (2 | ) | — | (16 | ) | ||||||||||||
Income taxes | 4 | (1 | ) | (24 | ) | — | (21 | ) | ||||||||||||
Balance as of March 31, 2014 | $ | (76 | ) | $ | (31 | ) | $ | (3 | ) | $ | (16 | ) | $ | (126 | ) | |||||
Reclassifications out of Accumulated Other Comprehensive Income | ' | |||||||||||||||||||
The reclassifications out of AOCI to Net income were as follows (in millions): | ||||||||||||||||||||
Amounts reclassified out of AOCI | ||||||||||||||||||||
March 31, | ||||||||||||||||||||
Components of AOCI | 2014 | 2013 | Line item affected in the Statements of Income | |||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||
Foreign currency contract losses | $ | — | $ | (4 | ) | Product sales | ||||||||||||||
Cross-currency swap contract gains (losses) | 14 | (140 | ) | Interest and other income, net | ||||||||||||||||
14 | (144 | ) | Total before income tax | |||||||||||||||||
(5 | ) | 53 | Tax (expense)/benefit | |||||||||||||||||
$ | 9 | $ | (91 | ) | Net of taxes | |||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||
Net realized gains | $ | 2 | $ | 67 | Interest and other income, net | |||||||||||||||
(1 | ) | (25 | ) | Tax expense | ||||||||||||||||
$ | 1 | $ | 42 | Net of taxes | ||||||||||||||||
Fair_value_measurement_Tables
Fair value measurement (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Schedule of Business Acquisitions by Acquisition, Contingent Consideration [Table Text Block] | ' | ||||||||||||||||
The changes in carrying amounts of contingent consideration obligations were as follows (in millions): | |||||||||||||||||
Three months ended | |||||||||||||||||
March 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Beginning balance | $ | 595 | $ | 221 | |||||||||||||
Net changes in valuation | 1 | 1 | |||||||||||||||
Ending balance | $ | 596 | $ | 222 | |||||||||||||
Fair value of each major class of financial assets and liabilities measured at fair value on a recurring basis | ' | ||||||||||||||||
The fair value of each major class of the Company’s financial assets and liabilities measured at fair value on a recurring basis was as follows (in millions): | |||||||||||||||||
Quoted prices in | Significant | Significant | |||||||||||||||
active markets for | other observable | unobservable | |||||||||||||||
Fair value measurement | identical assets | inputs | inputs | ||||||||||||||
as of March 31, 2014, using: | (Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||
Assets: | |||||||||||||||||
Available-for-sale investments: | |||||||||||||||||
U.S. Treasury securities | $ | 4,799 | $ | — | $ | — | $ | 4,799 | |||||||||
Other government-related debt securities: | |||||||||||||||||
U.S. | — | 999 | — | 999 | |||||||||||||
Foreign and other | — | 1,542 | — | 1,542 | |||||||||||||
Corporate debt securities: | |||||||||||||||||
Financial | — | 3,719 | — | 3,719 | |||||||||||||
Industrial | — | 3,770 | — | 3,770 | |||||||||||||
Other | — | 413 | — | 413 | |||||||||||||
Residential mortgage-backed securities | — | 1,436 | — | 1,436 | |||||||||||||
Other mortgage- and asset-backed securities | — | 1,471 | — | 1,471 | |||||||||||||
Money market mutual funds | 3,434 | — | — | 3,434 | |||||||||||||
Other short-term interest-bearing securities | — | 1,306 | — | 1,306 | |||||||||||||
Equity securities | 108 | — | — | 108 | |||||||||||||
Derivatives: | |||||||||||||||||
Foreign currency contracts | — | 62 | — | 62 | |||||||||||||
Cross-currency swap contracts | — | 195 | — | 195 | |||||||||||||
Interest rate swap contracts | — | 4 | — | 4 | |||||||||||||
Total assets | $ | 8,341 | $ | 14,917 | $ | — | $ | 23,258 | |||||||||
Liabilities: | |||||||||||||||||
Derivatives: | |||||||||||||||||
Foreign currency contracts | $ | — | $ | 101 | $ | — | $ | 101 | |||||||||
Cross-currency swap contracts | — | 2 | — | 2 | |||||||||||||
Interest rate swap contracts | — | 103 | — | 103 | |||||||||||||
Contingent consideration obligations in connection with business combinations | — | — | 596 | 596 | |||||||||||||
Total liabilities | $ | — | $ | 206 | $ | 596 | $ | 802 | |||||||||
Quoted prices in | Significant | Significant | |||||||||||||||
active markets for | other observable | unobservable | |||||||||||||||
Fair value measurement | identical assets | inputs | inputs | ||||||||||||||
as of December 31, 2013, using: | (Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||
Assets: | |||||||||||||||||
Available-for-sale investments: | |||||||||||||||||
U.S. Treasury securities | $ | 4,730 | $ | — | $ | — | $ | 4,730 | |||||||||
Other government-related debt securities: | |||||||||||||||||
U.S. | — | 1,079 | — | 1,079 | |||||||||||||
Foreign and other | — | 1,546 | — | 1,546 | |||||||||||||
Corporate debt securities: | |||||||||||||||||
Financial | — | 3,676 | — | 3,676 | |||||||||||||
Industrial | — | 3,760 | — | 3,760 | |||||||||||||
Other | — | 390 | — | 390 | |||||||||||||
Residential mortgage-backed securities | — | 1,460 | — | 1,460 | |||||||||||||
Other mortgage- and asset-backed securities | — | 1,511 | — | 1,511 | |||||||||||||
Money market mutual funds | 3,366 | — | — | 3,366 | |||||||||||||
Other short-term interest-bearing securities | — | 750 | — | 750 | |||||||||||||
Equity securities | 95 | — | — | 95 | |||||||||||||
Derivatives: | |||||||||||||||||
Foreign currency contracts | — | 53 | — | 53 | |||||||||||||
Cross-currency swap contracts | — | 193 | — | 193 | |||||||||||||
Total assets | $ | 8,191 | $ | 14,418 | $ | — | $ | 22,609 | |||||||||
Liabilities: | |||||||||||||||||
Derivatives: | |||||||||||||||||
Foreign currency contracts | $ | — | $ | 107 | $ | — | $ | 107 | |||||||||
Cross-currency swap contracts | — | 4 | — | 4 | |||||||||||||
Interest rate swap contracts | — | 161 | — | 161 | |||||||||||||
Contingent consideration obligations in connection with business combinations | — | — | 595 | 595 | |||||||||||||
Total liabilities | $ | — | $ | 272 | $ | 595 | $ | 867 | |||||||||
Derivative_instruments_Tables
Derivative instruments (Tables) | 3 Months Ended | ||||||||||||||
Mar. 31, 2014 | |||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||
Schedule of notional amounts and interest rates for cross-currency swaps | ' | ||||||||||||||
The notional amounts and interest rates of our cross-currency swaps are as follows (notional amounts in millions): | |||||||||||||||
Foreign currency | U.S. dollars | ||||||||||||||
Hedged notes | Notional Amount | Interest rate | Notional Amount | Interest rate | |||||||||||
2.125% 2019 euro Notes | € | 675 | 2.125 | % | $ | 864 | 2.6 | % | |||||||
5.50% 2026 pound sterling Notes | £ | 475 | 5.5 | % | $ | 748 | 5.8 | % | |||||||
4.00% 2029 pound sterling Notes | £ | 700 | 4 | % | $ | 1,122 | 4.3 | % | |||||||
Effective portion of the unrealized gain (loss) recognized in Other Comprehensive Income for our derivative instruments designated as cash flow hedges | ' | ||||||||||||||
The effective portions of the unrealized gain/(loss) recognized in other comprehensive income for our derivative instruments designated as cash flow hedges were as follows (in millions): | |||||||||||||||
Three months ended | |||||||||||||||
March 31, | |||||||||||||||
Derivatives in cash flow hedging relationships | 2014 | 2013 | |||||||||||||
Foreign currency contracts | $ | 13 | $ | 100 | |||||||||||
Cross-currency swap contracts | 4 | (125 | ) | ||||||||||||
Total | $ | 17 | $ | (25 | ) | ||||||||||
Location in the Condensed Consolidated Statements of Income and the effective portion of gain (loss) reclassified from Accumulated Other Comprehensive Income into earnings for our derivative instruments designated as cash flow hedges | ' | ||||||||||||||
The locations in the Condensed Consolidated Statements of Income and the effective portions of the gain/(loss) reclassified out of AOCI into earnings for our derivative instruments designated as cash flow hedges were as follows (in millions): | |||||||||||||||
Three months ended | |||||||||||||||
March 31, | |||||||||||||||
Derivatives in cash flow hedging relationships | Statements of Income location | 2014 | 2013 | ||||||||||||
Foreign currency contracts | Product sales | $ | — | $ | (4 | ) | |||||||||
Cross-currency swap contracts | Interest and other income, net | 14 | (140 | ) | |||||||||||
Total | $ | 14 | $ | (144 | ) | ||||||||||
Location in the Condensed Consolidated Statements of Income and the amount of gain (loss) recognized in earnings for the derivative instruments not designated as hedging instruments | ' | ||||||||||||||
The location in the Condensed Consolidated Statements of Income and the amount of gain/(loss) recognized in earnings for our derivative instruments not designated as hedging instruments were as follows (in millions): | |||||||||||||||
Three months ended | |||||||||||||||
March 31, | |||||||||||||||
Derivatives not designated as hedging instruments | Statements of Income location | 2014 | 2013 | ||||||||||||
Foreign currency contracts | Interest and other income, net | $ | 2 | $ | (16 | ) | |||||||||
Fair values of derivatives included in the Condensed Consolidated Balance Sheets | ' | ||||||||||||||
The fair values of derivatives included in the Condensed Consolidated Balance Sheets were as follows (in millions): | |||||||||||||||
Derivative assets | Derivative liabilities | ||||||||||||||
31-Mar-14 | Balance Sheet location | Fair value | Balance Sheet location | Fair value | |||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||
Cross-currency swap contracts | Other current assets/ Other noncurrent assets | $ | 195 | Accrued liabilities/ Other noncurrent liabilities | $ | 2 | |||||||||
Foreign currency contracts | Other current assets/ Other noncurrent assets | 60 | Accrued liabilities/ Other noncurrent liabilities | 99 | |||||||||||
Interest rate swap contracts | Other current assets/ Other noncurrent assets | 4 | Accrued liabilities/ Other noncurrent liabilities | 103 | |||||||||||
Total derivatives designated as hedging instruments | 259 | 204 | |||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||
Foreign currency contracts | Other current assets | 2 | Accrued liabilities | 2 | |||||||||||
Total derivatives not designated as hedging instruments | 2 | 2 | |||||||||||||
Total derivatives | $ | 261 | $ | 206 | |||||||||||
Derivative assets | Derivative liabilities | ||||||||||||||
31-Dec-13 | Balance Sheet location | Fair value | Balance Sheet location | Fair value | |||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||
Cross-currency swap contracts | Other current assets/ Other noncurrent assets | $ | 193 | Accrued liabilities/ Other noncurrent liabilities | $ | 4 | |||||||||
Foreign currency contracts | Other current assets/ Other noncurrent assets | 53 | Accrued liabilities/ Other noncurrent liabilities | 104 | |||||||||||
Interest rate swap contracts | Other current assets/ Other noncurrent assets | — | Accrued liabilities/ Other noncurrent liabilities | 161 | |||||||||||
Total derivatives designated as hedging instruments | 246 | 269 | |||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||
Foreign currency contracts | Other current assets | — | Accrued liabilities | 3 | |||||||||||
Total derivatives not designated as hedging instruments | — | 3 | |||||||||||||
Total derivatives | $ | 246 | $ | 272 | |||||||||||
Summary_of_significant_account2
Summary of significant accounting policies (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Billions, unless otherwise specified | ||
Accounting Policies [Abstract] | ' | ' |
Accumulated depreciation and amortization on property, plant and equipment | $7.10 | $6.90 |
Business_combinations_Details
Business combinations (Details) (Onyx Pharmaceuticals, Inc. [Member], USD $) | 0 Months Ended | 1 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
Onyx Pharmaceuticals, Inc. [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Total consideration transferred | $9,517 | $9,517 |
Compensation expense | 197 | ' |
Total cash paid | $9,714 | ' |
Business_combinations_Details_
Business combinations (Details 1) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 |
In Millions, unless otherwise specified | Onyx Pharmaceuticals, Inc. [Member] | Product Rights [Member] | Developed Product Technology Rights [Member] | Developed Product Technology Rights [Member] | Licensing Rights [Member] | Marketing-Related Rights [Member] | ||||
Onyx Pharmaceuticals, Inc. [Member] | Product Rights [Member] | Onyx Pharmaceuticals, Inc. [Member] | Product Rights [Member] | |||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | ' | ' | ' | ' | $319 | ' | ' | ' | ' | ' |
Marketable securities | ' | ' | ' | ' | 337 | ' | ' | ' | ' | ' |
Inventories | ' | ' | ' | ' | 170 | ' | ' | ' | ' | ' |
Indefinite-lived intangible assets - In-process research and development (IPR&D) | ' | ' | ' | ' | 1,170 | ' | ' | ' | ' | ' |
Finite-lived intangible assets | ' | ' | ' | ' | ' | ' | 6,190 | 11 | 2,792 | 363 |
Goodwill | 14,832 | 14,968 | 12,604 | 12,662 | 2,393 | 3 | ' | ' | ' | ' |
Convertible debt | ' | ' | ' | ' | -742 | ' | ' | ' | ' | ' |
Assumed contingent consideration | ' | ' | ' | ' | -261 | ' | ' | ' | ' | ' |
Deferred income taxes, net | ' | ' | ' | ' | -2,993 | ' | ' | ' | ' | ' |
Other assets (liabilities), net | ' | ' | ' | ' | 142 | ' | ' | ' | ' | ' |
Total consideration | ' | ' | ' | ' | 9,517 | 398 | ' | ' | ' | ' |
Other assets | ' | ' | ' | ' | ' | $21 | ' | ' | ' | ' |
Business_combinations_Details_1
Business combinations (Details 2) (Product Rights [Member], USD $) | 1 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Product Rights [Member] | ' |
Business Acquisition [Line Items] | ' |
Total consideration transferred or to be transferred | $497 |
Settlement of preexisting relationship at fair value | -99 |
Total consideration transferred to acquire the Product Rights | $398 |
Business_combinations_Details_2
Business combinations (Details Textual) (USD $) | 3 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 1 Months Ended | |||||||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Mar. 31, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | ||
Onyx Pharmaceuticals, Inc. [Member] | Onyx Pharmaceuticals, Inc. [Member] | Onyx Pharmaceuticals, Inc. [Member] | Onyx Pharmaceuticals, Inc. [Member] | Onyx Pharmaceuticals, Inc. [Member] | Onyx Pharmaceuticals, Inc. [Member] | Onyx Pharmaceuticals, Inc. [Member] | Onyx Pharmaceuticals, Inc. [Member] | Onyx Pharmaceuticals, Inc. [Member] | Product Rights [Member] | Product Rights [Member] | Product Rights [Member] | Product Rights [Member] | |||||
oncology_assets | oncology_assets | Selling, General and Administrative Expenses [Member] | Developed Product Technology Rights [Member] | Developed Product Technology Rights [Member] | Licensing Rights [Member] | Common Stockholders [Member] | Equity Award Holders for Services Rendered Prior to Date of Acquisition [Member] | market | Cost of Sales [Member] | Developed Product Technology Rights [Member] | Marketing-Related Rights [Member] | ||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Number of partnered oncology assets | ' | ' | 3 | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Cash payments | ' | ' | $9,517 | $9,517 | ' | ' | ' | ' | ' | $9,186 | $331 | ' | ' | ' | ' | ||
Total consideration transferred or to be transferred | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 497 | ' | ' | ' | ||
Share-based compensation expense | ' | ' | ' | ' | ' | 197 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Reduction in goodwill | 130 | [1] | 48 | [1] | ' | ' | 133 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in developed product technology rights | ' | ' | ' | ' | ' | ' | ' | 280 | ' | ' | ' | ' | ' | ' | ' | ||
Increase in deferred income taxes | ' | ' | ' | ' | 75 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Decrease in inventory | ' | ' | ' | ' | 80 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Finite-lived intangible assets, estimated useful life (in years) | ' | ' | ' | ' | ' | ' | '12 years | ' | '10 years | ' | ' | ' | ' | '3 years 6 months | '5 years | ||
Number of markets holding acquired licenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100 | ' | ' | ' | ||
Fair value of contract terminated | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $99 | ' | ' | ||
[1] | Composed primarily of adjustments to goodwill resulting from changes to the acquisition date fair values of net assets acquired in business combinations recorded during their respective measurement periods. |
Income_taxes_Details
Income taxes (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Income taxes (Textual) [Abstract] | ' | ' |
Effective income tax rate | 10.90% | -6.80% |
Effective tax rate for the period excluding the impact of the tax credits associated with the new Pr excise tax | 15.40% | -0.80% |
Increase in gross amount of unrecognized tax benefits for period | $65 | ' |
Decrease in unrecognized tax benefits that is reasonably possible within the succeeding 12 months due to resolution of federal and state audits | $70 | ' |
Puerto Rico Excise Tax [Member] | ' | ' |
Puerto Rico Excise Tax Rate [Line Items] | ' | ' |
Effective excise tax rate for first half of 2013 | 2.75% | ' |
Excise tax rate effective July 1, 2013 through 2017 | 4.00% | ' |
Earnings_per_share_Details
Earnings per share (Details) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Income (Numerator): | ' | ' |
Net income for basic and diluted EPS | $1,073 | $1,434 |
Shares (Denominator): | ' | ' |
Weighted-average shares for basic EPS | 757 | 751 |
Effect of dilutive securities | 11 | 13 |
Weighted-average shares for diluted EPS | 768 | 764 |
Basic EPS (in usd per share) | $1.42 | $1.91 |
Diluted EPS (in usd per share) | $1.40 | $1.88 |
Availableforsale_investments_D
Available-for-sale investments (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of available-for-sale investments by type of security | ' | ' |
Amortized cost | $23,002 | $22,432 |
Gross unrealized gains | 117 | 97 |
Gross unrealized losses | -122 | -166 |
Total available-for-sale investments | 22,997 | 22,363 |
U.S. Treasury securities [Member] | ' | ' |
Amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of available-for-sale investments by type of security | ' | ' |
Amortized cost | 4,802 | 4,737 |
Gross unrealized gains | 4 | 2 |
Gross unrealized losses | -7 | -9 |
Total available-for-sale investments | 4,799 | 4,730 |
Other government-related debt securities - U.S. [Member] | ' | ' |
Amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of available-for-sale investments by type of security | ' | ' |
Amortized cost | 1,005 | 1,087 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | -6 | -8 |
Total available-for-sale investments | 999 | 1,079 |
Other government-related debt securities - Foreign and other [Member] | ' | ' |
Amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of available-for-sale investments by type of security | ' | ' |
Amortized cost | 1,547 | 1,574 |
Gross unrealized gains | 18 | 13 |
Gross unrealized losses | -23 | -41 |
Total available-for-sale investments | 1,542 | 1,546 |
Corporate debt securities - Financial [Member] | ' | ' |
Amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of available-for-sale investments by type of security | ' | ' |
Amortized cost | 3,700 | 3,667 |
Gross unrealized gains | 29 | 28 |
Gross unrealized losses | -10 | -19 |
Total available-for-sale investments | 3,719 | 3,676 |
Corporate debt securities - Industrial [Member] | ' | ' |
Amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of available-for-sale investments by type of security | ' | ' |
Amortized cost | 3,739 | 3,745 |
Gross unrealized gains | 42 | 36 |
Gross unrealized losses | -11 | -21 |
Total available-for-sale investments | 3,770 | 3,760 |
Corporate debt securities - Other [Member] | ' | ' |
Amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of available-for-sale investments by type of security | ' | ' |
Amortized cost | 410 | 388 |
Gross unrealized gains | 4 | 4 |
Gross unrealized losses | -1 | -2 |
Total available-for-sale investments | 413 | 390 |
Residential mortgage-backed securities [Member] | ' | ' |
Amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of available-for-sale investments by type of security | ' | ' |
Amortized cost | 1,449 | 1,478 |
Gross unrealized gains | 3 | 3 |
Gross unrealized losses | -16 | -21 |
Total available-for-sale investments | 1,436 | 1,460 |
Other mortgage- and asset-backed securities [Member] | ' | ' |
Amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of available-for-sale investments by type of security | ' | ' |
Amortized cost | 1,519 | 1,555 |
Gross unrealized gains | 0 | 1 |
Gross unrealized losses | -48 | -45 |
Total available-for-sale investments | 1,471 | 1,511 |
Money market mutual funds [Member] | ' | ' |
Amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of available-for-sale investments by type of security | ' | ' |
Amortized cost | 3,434 | 3,366 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Total available-for-sale investments | 3,434 | 3,366 |
Other short-term interest-bearing securities [Member] | ' | ' |
Amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of available-for-sale investments by type of security | ' | ' |
Amortized cost | 1,306 | 750 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Total available-for-sale investments | 1,306 | 750 |
Total interest-bearing securities [Member] | ' | ' |
Amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of available-for-sale investments by type of security | ' | ' |
Amortized cost | 22,911 | 22,347 |
Gross unrealized gains | 100 | 87 |
Gross unrealized losses | -122 | -166 |
Total available-for-sale investments | 22,889 | 22,268 |
Equity securities [Member] | ' | ' |
Amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of available-for-sale investments by type of security | ' | ' |
Amortized cost | 91 | 85 |
Gross unrealized gains | 17 | 10 |
Gross unrealized losses | 0 | 0 |
Total available-for-sale investments | $108 | $95 |
Availableforsale_investments_D1
Available-for-sale investments (Details 1) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||||
Fair values of available-for-sale investments by classification in the Consolidated Balance Sheets | ' | ' | ' | ' |
Cash and cash equivalents | $3,687 | $3,805 | $2,530 | $3,257 |
Marketable securities | 16,115 | 15,596 | ' | ' |
Other assets — noncurrent | 1,525 | 1,767 | ' | ' |
Restricted investments | 3,414 | 3,412 | ' | ' |
Total available-for-sale investments | 22,997 | 22,363 | ' | ' |
Available-for-sale investments [Member] | ' | ' | ' | ' |
Fair values of available-for-sale investments by classification in the Consolidated Balance Sheets | ' | ' | ' | ' |
Cash and cash equivalents | 3,366 | 3,266 | ' | ' |
Other assets — noncurrent | 108 | 95 | ' | ' |
ATL Holdings [Member] | Available-for-sale investments [Member] | ' | ' | ' | ' |
Fair values of available-for-sale investments by classification in the Consolidated Balance Sheets | ' | ' | ' | ' |
Restricted investments | $3,408 | $3,406 | ' | ' |
Availableforsale_investments_D2
Available-for-sale investments (Details 2) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair values of available-for-sale debt security investments by contractual maturity | ' | ' |
Maturing in one year or less | $7,107 | $6,799 |
Maturing after one year through three years | 5,261 | 4,785 |
Maturing after three years through five years | 5,947 | 6,057 |
Maturing after five years through ten years | 1,667 | 1,656 |
Mortgage- and asset-backed securities | 2,907 | 2,971 |
Total available-for-sale investments | 22,997 | 22,363 |
Total interest-bearing securities [Member] | ' | ' |
Fair values of available-for-sale debt security investments by contractual maturity | ' | ' |
Total available-for-sale investments | $22,889 | $22,268 |
Availableforsale_investments_D3
Available-for-sale investments (Details Textual) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Available-for-sale investments (Textual) [Abstract] | ' | ' | ' |
Cash | $321,000,000 | ' | $539,000,000 |
Total realized gains | 28,000,000 | 85,000,000 | ' |
Total realized losses | 26,000,000 | 18,000,000 | ' |
Available for sale securities gross unrealized loss accumulated in investments | 122,000,000 | ' | 166,000,000 |
Continuous unrealized loss position, less than 12 months | 8,900,000,000 | ' | ' |
ATL Holdings [Member] | ' | ' | ' |
Investments [Line Items] | ' | ' | ' |
Interest receivable | $6,000,000 | ' | $6,000,000 |
Inventories_Details
Inventories (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventories | ' | ' |
Raw materials | $212 | $217 |
Work in process | 1,885 | 2,064 |
Finished goods | 869 | 738 |
Total inventories | $2,966 | $3,019 |
Goodwill_and_other_intangible_2
Goodwill and other intangible assets (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Goodwill [Roll Forward] | ' | ' | ||
Beginning balance | $14,968 | $12,662 | ||
Goodwill related acquisitions of businesses | -130 | [1] | -48 | [1] |
Currency translation adjustments | -6 | -10 | ||
Ending balance | $14,832 | $12,604 | ||
[1] | Composed primarily of adjustments to goodwill resulting from changes to the acquisition date fair values of net assets acquired in business combinations recorded during their respective measurement periods. |
Goodwill_and_other_intangible_3
Goodwill and other intangible assets (Details 1) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Finite-lived intangible assets: | ' | ' |
Gross carrying amount | $15,844 | $15,197 |
Accumulated amortization | -4,932 | -4,575 |
Intangible assets, net | 10,912 | 10,622 |
Indefinite-lived intangible assets: | ' | ' |
Total gross carrying amount | 18,498 | 17,837 |
Total accumulated amortization | -4,932 | -4,575 |
Total intangible assets, net | 13,566 | 13,262 |
IPR&D [Member] | ' | ' |
Indefinite-lived intangible assets: | ' | ' |
Indefinite-lived intangible assets | 2,654 | 2,640 |
Developed Product Technology Rights [Member] | ' | ' |
Finite-lived intangible assets: | ' | ' |
Gross carrying amount | 10,421 | 10,130 |
Accumulated amortization | -3,553 | -3,347 |
Intangible assets, net | 6,868 | 6,783 |
Licensing Rights [Member] | ' | ' |
Finite-lived intangible assets: | ' | ' |
Gross carrying amount | 3,241 | 3,241 |
Accumulated amortization | -463 | -366 |
Intangible assets, net | 2,778 | 2,875 |
R&D Technology Rights [Member] | ' | ' |
Finite-lived intangible assets: | ' | ' |
Gross carrying amount | 1,210 | 1,207 |
Accumulated amortization | -518 | -496 |
Intangible assets, net | 692 | 711 |
Marketing-related Rights [Member] | ' | ' |
Finite-lived intangible assets: | ' | ' |
Gross carrying amount | 972 | 619 |
Accumulated amortization | -398 | -366 |
Intangible assets, net | $574 | $253 |
Goodwill_and_other_intangible_4
Goodwill and other intangible assets (Details Textual) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' |
Amortization charges associated with finite-lived intangible assets | $357,000,000 | $117,000,000 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ' | ' |
Total estimated amortization of finite- lived intangible assets for the nine months ended 2014 | 951,000,000 | ' |
Total estimated amortization of finite- lived intangible assets for 2015 | 1,300,000,000 | ' |
Total estimated amortization of finite- lived intangible assets for 2016 | 1,300,000,000 | ' |
Total estimated amortization of finite- lived intangible assets for 2017 | 1,100,000,000 | ' |
Total estimated amortization of finite- lived intangible assets for 2018 | 967,000,000 | ' |
Total estimated amortization of finite- lived intangible assets for 2019 | $894,000,000 | ' |
Financing_arrangements_Details
Financing arrangements (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Carrying values of long-term borrowings | ' | ' |
Other notes | $105 | $105 |
Total debt | 32,024 | 32,128 |
Less current portion | -2,505 | -2,505 |
Total noncurrent debt | 29,519 | 29,623 |
1.875% notes due 2014 (1.875% 2014 Notes) [Member] | ' | ' |
Carrying values of long-term borrowings | ' | ' |
Less current portion | -1,000 | -1,000 |
Interest rate, stated percentage | 1.88% | 1.88% |
4.85% notes due 2014 (4.85% 2014 Notes) [Member] | ' | ' |
Carrying values of long-term borrowings | ' | ' |
Less current portion | -1,000 | -1,000 |
Interest rate, stated percentage | 4.85% | 4.85% |
2.30% notes due 2016 (2.30% 2016 Notes) [Member] | ' | ' |
Carrying values of long-term borrowings | ' | ' |
Total noncurrent debt | 749 | 749 |
Interest rate, stated percentage | 2.30% | 2.30% |
2.50% notes due 2016 (2.50% 2016 Notes) [Member] | ' | ' |
Carrying values of long-term borrowings | ' | ' |
Total noncurrent debt | 999 | 999 |
Interest rate, stated percentage | 2.50% | 2.50% |
2.125% notes due 2017 (2.125% 2017 Notes) [Member] | ' | ' |
Carrying values of long-term borrowings | ' | ' |
Total noncurrent debt | 1,249 | 1,248 |
Interest rate, stated percentage | 2.13% | 2.13% |
5.85% notes due 2017 (5.85% 2017 Notes) [Member] | ' | ' |
Carrying values of long-term borrowings | ' | ' |
Total noncurrent debt | 1,099 | 1,099 |
Interest rate, stated percentage | 5.85% | 5.85% |
6.15% notes due 2018 (6.15% 2018 Notes) [Member] | ' | ' |
Carrying values of long-term borrowings | ' | ' |
Total noncurrent debt | 500 | 500 |
Interest rate, stated percentage | 6.15% | 6.15% |
Master Repurchase Agreement Obligation due 2018 [Member] | ' | ' |
Carrying values of long-term borrowings | ' | ' |
Loans payable to bank, noncurrent | 3,100 | 3,100 |
Term Loan Due 2018 [Member] | ' | ' |
Carrying values of long-term borrowings | ' | ' |
Loans payable to bank | 4,750 | 4,875 |
Term Loan Credit Facility, repayment of principal | 125 | ' |
4.375% euro denominated notes due 2018 (4.375% 2018 euro Notes) [Member] | ' | ' |
Carrying values of long-term borrowings | ' | ' |
Total noncurrent debt | 757 | 751 |
Interest rate, stated percentage | 4.38% | 4.38% |
5.70% notes due 2019 (5.70% 2019 Notes) [Member] | ' | ' |
Carrying values of long-term borrowings | ' | ' |
Total noncurrent debt | 999 | 999 |
Interest rate, stated percentage | 5.70% | 5.70% |
2.125% euro denominated notes due 2019 (2.125% 2019 euro Notes) [Member] | ' | ' |
Carrying values of long-term borrowings | ' | ' |
Total noncurrent debt | 927 | 925 |
Interest rate, stated percentage | 2.13% | 2.13% |
4.50% notes due 2020 (4.50% 2020 Notes) [Member] | ' | ' |
Carrying values of long-term borrowings | ' | ' |
Total noncurrent debt | 300 | 300 |
Interest rate, stated percentage | 4.50% | 4.50% |
3.45% notes due 2020 (3.45% 2020 Notes) [Member] | ' | ' |
Carrying values of long-term borrowings | ' | ' |
Total noncurrent debt | 898 | 898 |
Interest rate, stated percentage | 3.45% | 3.45% |
4.10% notes due 2021 (4.10% 2021 Notes) [Member] | ' | ' |
Carrying values of long-term borrowings | ' | ' |
Total noncurrent debt | 998 | 998 |
Interest rate, stated percentage | 4.10% | 4.10% |
Notes Due Two Thousand Two One [Member] | ' | ' |
Carrying values of long-term borrowings | ' | ' |
Total noncurrent debt | 1,746 | 1,746 |
Interest rate, stated percentage | 3.88% | 3.88% |
3.625% notes due 2022 (3.625% 2022 Notes) [Member] | ' | ' |
Carrying values of long-term borrowings | ' | ' |
Total noncurrent debt | 747 | 747 |
Interest rate, stated percentage | 3.63% | 3.63% |
5.50% pound sterling denominated notes due 2026 (5.50% 2026 pound sterling Notes) [Member] | ' | ' |
Carrying values of long-term borrowings | ' | ' |
Total noncurrent debt | 786 | 781 |
Interest rate, stated percentage | 5.50% | 5.50% |
4.00% pound sterling denominated notes due 2029 (4.00% 2029 pound sterling Notes) [Member] | ' | ' |
Carrying values of long-term borrowings | ' | ' |
Total noncurrent debt | 1,151 | 1,144 |
Interest rate, stated percentage | 4.00% | 4.00% |
6.375% notes due 2037 (6.375% 2037 Notes) [Member] | ' | ' |
Carrying values of long-term borrowings | ' | ' |
Total noncurrent debt | 899 | 899 |
Interest rate, stated percentage | 6.38% | 6.38% |
6.90% notes due 2038 (6.90% 2038 Notes) [Member] | ' | ' |
Carrying values of long-term borrowings | ' | ' |
Total noncurrent debt | 499 | 499 |
Interest rate, stated percentage | 6.90% | 6.90% |
6.40% notes due 2039 (6.40% 2039 Notes) [Member] | ' | ' |
Carrying values of long-term borrowings | ' | ' |
Total noncurrent debt | 996 | 996 |
Interest rate, stated percentage | 6.40% | 6.40% |
5.75% notes due 2040 (5.75% 2040 Notes) [Member] | ' | ' |
Carrying values of long-term borrowings | ' | ' |
Total noncurrent debt | 697 | 697 |
Interest rate, stated percentage | 5.75% | 5.75% |
4.95% notes due 2041 (4.95% 2041 Notes) [Member] | ' | ' |
Carrying values of long-term borrowings | ' | ' |
Total noncurrent debt | 596 | 596 |
Interest rate, stated percentage | 4.95% | 4.95% |
5.15% notes due 2041 (5.15% 2041 Notes) [Member] | ' | ' |
Carrying values of long-term borrowings | ' | ' |
Total noncurrent debt | 2,233 | 2,233 |
Interest rate, stated percentage | 5.15% | 5.15% |
5.65% notes due 2042 (5.65% 2042 Notes) [Member] | ' | ' |
Carrying values of long-term borrowings | ' | ' |
Total noncurrent debt | 1,244 | 1,244 |
Interest rate, stated percentage | 5.65% | 5.65% |
5.375% notes due 2043 (5.375% 2043 Notes) [Member] | ' | ' |
Carrying values of long-term borrowings | ' | ' |
Total noncurrent debt | $1,000 | $1,000 |
Interest rate, stated percentage | 5.38% | 5.38% |
Stockholders_equity_Details_Te
Stockholders' equity (Details Textual) (USD $) | 1 Months Ended | 3 Months Ended | |||
In Billions, except Per Share data, unless otherwise specified | Mar. 07, 2014 | Mar. 05, 2014 | Dec. 13, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Equity [Abstract] | ' | ' | ' | ' | ' |
Amount available for stock repurchases under a board approved stock repurchase plan | ' | ' | ' | $1.60 | ' |
Common stock, dividends declared per share (in usd per share) | ' | $0.61 | $0.61 | ' | ' |
Dividends paid per share (in usd per share) | $0.61 | ' | ' | $0.61 | $0.47 |
Stockholders_equity_Details_1
Stockholders' equity (Details 1) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ' |
Beginning balance, Foreign currency translation | ($68) |
Beginning balance, Cash flow hedges | -33 |
Beginning balance, Available-for-sale securities | -43 |
Beginning balance, Other | -17 |
Beginning balance, AOCI | -161 |
Other Comprehensive Income (Loss), before Tax [Abstract] | ' |
Foreign currency translation adjustments | -12 |
Unrealized gains (losses), Cash flow hedges | 17 |
Unrealized gains (losses), Available-for-sale securities | 66 |
Unrealized gains (losses), Other | 1 |
Unrealized gains (losses), AOCI | 84 |
Reclassification adjustments to income, Foreign currency translation | 0 |
Reclassification adjustments to income, Cash flow hedges | -14 |
Reclassification adjustments to income, Available-for-sale securities | -2 |
Reclassification adjustments to income, AOCI | -16 |
Income taxes, Foreign currency translation | 4 |
Income taxes, Cash flow hedges | -1 |
Income taxes, Available-for-sale securities | -24 |
Income taxes, Other | 0 |
Income taxes, AOCI | -21 |
Ending balance, Foreign currency translation | -76 |
Ending balance, Cash flow hedges | -31 |
Ending balance, Available-for-sale securities | -3 |
Ending balance, Other | -16 |
Ending balance, AOCI | ($126) |
Stockholders_equity_Details_2
Stockholders' equity (Details 2) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ' | ' |
Product sales | $4,356 | $4,151 |
Interest and other income, net | 99 | 164 |
Income before income taxes | 1,204 | 1,343 |
Tax expense | -131 | 91 |
Net income | 1,073 | 1,434 |
Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' |
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ' | ' |
Product sales | 0 | -4 |
Interest and other income, net | 14 | -140 |
Income before income taxes | 14 | -144 |
Tax expense | -5 | 53 |
Net income | 9 | -91 |
Realized Gains and Losses on Available-for-sale Securities [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' |
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ' | ' |
Interest and other income, net | 2 | 67 |
Tax expense | -1 | -25 |
Net income | $1 | $42 |
Fair_value_measurement_Details
Fair value measurement (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||||
Assets: | ' | ' | ' | ' |
Total available-for-sale investments | $22,997 | $22,363 | ' | ' |
Fair Value, Measurements, Recurring [Member] | ' | ' | ' | ' |
Derivative Assets: | ' | ' | ' | ' |
Interest rate swap contracts | 4 | ' | ' | ' |
Total assets | 23,258 | 22,609 | ' | ' |
Derivative Liabilities: | ' | ' | ' | ' |
Interest rate swap contracts | 103 | 161 | ' | ' |
Contingent consideration obligations in connection with business combinations | 596 | 595 | ' | ' |
Total liabilities | 802 | 867 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Foreign currency contracts [Member] | ' | ' | ' | ' |
Derivative Assets: | ' | ' | ' | ' |
Foreign currency contracts | 62 | 53 | ' | ' |
Derivative Liabilities: | ' | ' | ' | ' |
Foreign currency contracts | 101 | 107 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Cross currency swap contracts [Member] | ' | ' | ' | ' |
Derivative Assets: | ' | ' | ' | ' |
Foreign currency contracts | 195 | 193 | ' | ' |
Derivative Liabilities: | ' | ' | ' | ' |
Foreign currency contracts | 2 | 4 | ' | ' |
Fair Value, Measurements, Recurring [Member] | U.S. Treasury securities [Member] | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Total available-for-sale investments | 4,799 | 4,730 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Other government-related debt securities - U.S. [Member] | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Total available-for-sale investments | 999 | 1,079 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Other government-related debt securities - Foreign and other [Member] | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Total available-for-sale investments | 1,542 | 1,546 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Corporate debt securities - Financial [Member] | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Total available-for-sale investments | 3,719 | 3,676 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Corporate debt securities - Industrial [Member] | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Total available-for-sale investments | 3,770 | 3,760 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Corporate debt securities - Other [Member] | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Total available-for-sale investments | 413 | 390 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Residential mortgage-backed securities [Member] | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Total available-for-sale investments | 1,436 | 1,460 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Other mortgage- and asset-backed securities [Member] | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Total available-for-sale investments | 1,471 | 1,511 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Money market mutual funds [Member] | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Total available-for-sale investments | 3,434 | 3,366 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Other short-term interest-bearing securities [Member] | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Total available-for-sale investments | 1,306 | 750 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Equity securities [Member] | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Total available-for-sale investments | 108 | 95 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | ' | ' | ' | ' |
Derivative Assets: | ' | ' | ' | ' |
Interest rate swap contracts | 0 | ' | ' | ' |
Total assets | 8,341 | 8,191 | ' | ' |
Derivative Liabilities: | ' | ' | ' | ' |
Interest rate swap contracts | 0 | 0 | ' | ' |
Contingent consideration obligations in connection with business combinations | 0 | 0 | ' | ' |
Total liabilities | 0 | 0 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Foreign currency contracts [Member] | ' | ' | ' | ' |
Derivative Assets: | ' | ' | ' | ' |
Foreign currency contracts | 0 | 0 | ' | ' |
Derivative Liabilities: | ' | ' | ' | ' |
Foreign currency contracts | 0 | 0 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Cross currency swap contracts [Member] | ' | ' | ' | ' |
Derivative Assets: | ' | ' | ' | ' |
Foreign currency contracts | 0 | 0 | ' | ' |
Derivative Liabilities: | ' | ' | ' | ' |
Foreign currency contracts | 0 | 0 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | U.S. Treasury securities [Member] | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Total available-for-sale investments | 4,799 | 4,730 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Other government-related debt securities - U.S. [Member] | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Total available-for-sale investments | 0 | 0 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Other government-related debt securities - Foreign and other [Member] | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Total available-for-sale investments | 0 | 0 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Corporate debt securities - Financial [Member] | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Total available-for-sale investments | 0 | 0 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Corporate debt securities - Industrial [Member] | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Total available-for-sale investments | 0 | 0 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Corporate debt securities - Other [Member] | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Total available-for-sale investments | 0 | 0 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Residential mortgage-backed securities [Member] | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Total available-for-sale investments | 0 | 0 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Other mortgage- and asset-backed securities [Member] | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Total available-for-sale investments | 0 | 0 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Money market mutual funds [Member] | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Total available-for-sale investments | 3,434 | 3,366 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Other short-term interest-bearing securities [Member] | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Total available-for-sale investments | 0 | 0 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Equity securities [Member] | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Total available-for-sale investments | 108 | 95 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Significant other observable inputs (Level 2) [Member] | ' | ' | ' | ' |
Derivative Assets: | ' | ' | ' | ' |
Interest rate swap contracts | 4 | ' | ' | ' |
Total assets | 14,917 | 14,418 | ' | ' |
Derivative Liabilities: | ' | ' | ' | ' |
Interest rate swap contracts | 103 | 161 | ' | ' |
Contingent consideration obligations in connection with business combinations | 0 | 0 | ' | ' |
Total liabilities | 206 | 272 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Foreign currency contracts [Member] | ' | ' | ' | ' |
Derivative Assets: | ' | ' | ' | ' |
Foreign currency contracts | 62 | 53 | ' | ' |
Derivative Liabilities: | ' | ' | ' | ' |
Foreign currency contracts | 101 | 107 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Cross currency swap contracts [Member] | ' | ' | ' | ' |
Derivative Assets: | ' | ' | ' | ' |
Foreign currency contracts | 195 | 193 | ' | ' |
Derivative Liabilities: | ' | ' | ' | ' |
Foreign currency contracts | 2 | 4 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Significant other observable inputs (Level 2) [Member] | U.S. Treasury securities [Member] | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Total available-for-sale investments | 0 | 0 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Other government-related debt securities - U.S. [Member] | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Total available-for-sale investments | 999 | 1,079 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Other government-related debt securities - Foreign and other [Member] | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Total available-for-sale investments | 1,542 | 1,546 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Corporate debt securities - Financial [Member] | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Total available-for-sale investments | 3,719 | 3,676 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Corporate debt securities - Industrial [Member] | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Total available-for-sale investments | 3,770 | 3,760 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Corporate debt securities - Other [Member] | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Total available-for-sale investments | 413 | 390 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Residential mortgage-backed securities [Member] | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Total available-for-sale investments | 1,436 | 1,460 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Other mortgage- and asset-backed securities [Member] | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Total available-for-sale investments | 1,471 | 1,511 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Money market mutual funds [Member] | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Total available-for-sale investments | 0 | 0 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Other short-term interest-bearing securities [Member] | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Total available-for-sale investments | 1,306 | 750 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Equity securities [Member] | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Total available-for-sale investments | 0 | 0 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' | ' | ' |
Derivative Assets: | ' | ' | ' | ' |
Interest rate swap contracts | 0 | ' | ' | ' |
Total assets | 0 | 0 | ' | ' |
Derivative Liabilities: | ' | ' | ' | ' |
Interest rate swap contracts | 0 | 0 | ' | ' |
Contingent consideration obligations in connection with business combinations | 596 | 595 | 222 | 221 |
Total liabilities | 596 | 595 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Foreign currency contracts [Member] | ' | ' | ' | ' |
Derivative Assets: | ' | ' | ' | ' |
Foreign currency contracts | 0 | 0 | ' | ' |
Derivative Liabilities: | ' | ' | ' | ' |
Foreign currency contracts | 0 | 0 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Cross currency swap contracts [Member] | ' | ' | ' | ' |
Derivative Assets: | ' | ' | ' | ' |
Foreign currency contracts | 0 | 0 | ' | ' |
Derivative Liabilities: | ' | ' | ' | ' |
Foreign currency contracts | 0 | 0 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | U.S. Treasury securities [Member] | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Total available-for-sale investments | 0 | 0 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Other government-related debt securities - U.S. [Member] | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Total available-for-sale investments | 0 | 0 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Other government-related debt securities - Foreign and other [Member] | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Total available-for-sale investments | 0 | 0 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Corporate debt securities - Financial [Member] | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Total available-for-sale investments | 0 | 0 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Corporate debt securities - Industrial [Member] | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Total available-for-sale investments | 0 | 0 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Corporate debt securities - Other [Member] | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Total available-for-sale investments | 0 | 0 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Residential mortgage-backed securities [Member] | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Total available-for-sale investments | 0 | 0 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Other mortgage- and asset-backed securities [Member] | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Total available-for-sale investments | 0 | 0 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Money market mutual funds [Member] | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Total available-for-sale investments | 0 | 0 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Other short-term interest-bearing securities [Member] | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Total available-for-sale investments | 0 | 0 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Equity securities [Member] | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Total available-for-sale investments | $0 | $0 | ' | ' |
Fair_value_measurement_Fair_va
Fair value measurement Fair value measurement (Details 1) (Fair Value, Measurements, Recurring [Member], USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
In Millions, unless otherwise specified | Significant unobservable inputs (Level 3) [Member] | Significant unobservable inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Beginning balance | $596 | $595 | $595 | $221 |
Net changes in valuation | ' | ' | 1 | 1 |
Ending balance | $596 | $595 | $596 | $222 |
Fair_value_measurements_Detail
Fair value measurements (Details Textual) (USD $) | 3 Months Ended | 1 Months Ended | 3 Months Ended | 3 Months Ended | |||
Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2011 | Mar. 31, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Mar. 31, 2014 | |
BioVex Group Inc [Member] | BioVex Group Inc [Member] | Onyx Pharmaceuticals, Inc. [Member] | Onyx Pharmaceuticals, Inc. [Member] | Other Government-related and Corporate Debt Securities [Member] | |||
ContingentConsideration | payment | ||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Investment maturity period | ' | ' | ' | ' | ' | ' | '5 years |
Length of time hedged in foreign currency contracts | '3 years | ' | ' | ' | ' | ' | ' |
Maximum additional consideration due contingent on milestones | ' | ' | $575,000,000 | ' | ' | ' | ' |
Maximum number of contingent consideration payments for achieving regulatory and sales related milestones | ' | ' | 8 | ' | ' | ' | ' |
The number of payments that will potentially be made that each equal the largest potential contingent consideration payment | ' | ' | 3 | ' | ' | ' | ' |
Largest potential contingent consideration payments | ' | ' | 125,000,000 | ' | ' | ' | ' |
Change in fair values of contingent consideration obligations | ' | ' | ' | 0 | 1,000,000 | ' | ' |
Assumed contingent consideration obligation | ' | ' | ' | 334,000,000 | ' | 261,000,000 | ' |
Number of milestone payments | ' | ' | ' | ' | 2 | ' | ' |
Contingent consideration arrangements, milestone payments | ' | ' | ' | ' | 150,000,000 | ' | ' |
Fair Value Measurement (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Aggregate fair value of long-term debt, including current portion | 33,800,000,000 | 33,500,000,000 | ' | ' | ' | ' | ' |
Carrying value of long-term debt, including current portion | $32,024,000,000 | $32,128,000,000 | ' | ' | ' | ' | ' |
Derivative_Instruments_Details
Derivative Instruments (Details) (Cash flow hedge [Member], Cross currency swap contracts [Member]) | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
In Millions, unless otherwise specified | 2.125% euro denominated notes due 2019 (2.125% 2019 euro Notes) [Member] | 2.125% euro denominated notes due 2019 (2.125% 2019 euro Notes) [Member] | 5.50% pound sterling denominated notes due 2026 (5.50% 2026 pound sterling Notes) [Member] | 5.50% pound sterling denominated notes due 2026 (5.50% 2026 pound sterling Notes) [Member] | 4.00% pound sterling denominated notes due 2029 (4.00% 2029 pound sterling Notes) [Member] | 4.00% pound sterling denominated notes due 2029 (4.00% 2029 pound sterling Notes) [Member] | Interest rate received [Member] | Interest rate received [Member] | Interest rate received [Member] | Interest rate paid [Member] | Interest rate paid [Member] | Interest rate paid [Member] |
USD ($) | EUR (€) | USD ($) | GBP (£) | USD ($) | GBP (£) | 2.125% euro denominated notes due 2019 (2.125% 2019 euro Notes) [Member] | 5.50% pound sterling denominated notes due 2026 (5.50% 2026 pound sterling Notes) [Member] | 4.00% pound sterling denominated notes due 2029 (4.00% 2029 pound sterling Notes) [Member] | 2.125% euro denominated notes due 2019 (2.125% 2019 euro Notes) [Member] | 5.50% pound sterling denominated notes due 2026 (5.50% 2026 pound sterling Notes) [Member] | 4.00% pound sterling denominated notes due 2029 (4.00% 2029 pound sterling Notes) [Member] | |
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional Amount | $864 | € 675 | $748 | £ 475 | $1,122 | £ 700 | ' | ' | ' | ' | ' | ' |
Fixed Interest Rate | ' | ' | ' | ' | ' | ' | 2.13% | 5.50% | 4.00% | 2.60% | 5.80% | 4.30% |
Recovered_Sheet1
Derivative instruments (Details 1) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Effective portion of the unrealized gain (loss) recognized in Other Comprehensive Income for our derivative instruments designated as cash flow hedges | ' | ' |
Unrealized gain (loss) on derivative instruments recognized in Other Comprehensive Income, effective portion, net | $17 | ($25) |
Foreign currency contracts [Member] | ' | ' |
Effective portion of the unrealized gain (loss) recognized in Other Comprehensive Income for our derivative instruments designated as cash flow hedges | ' | ' |
Unrealized gain (loss) on derivative instruments recognized in Other Comprehensive Income, effective portion, net | 13 | 100 |
Cross currency swap contracts [Member] | ' | ' |
Effective portion of the unrealized gain (loss) recognized in Other Comprehensive Income for our derivative instruments designated as cash flow hedges | ' | ' |
Unrealized gain (loss) on derivative instruments recognized in Other Comprehensive Income, effective portion, net | $4 | ($125) |
Derivative_instruments_Details1
Derivative instruments (Details 2) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Derivative Instruments Gain Loss [Line Items] | ' | ' |
Product sales | $4,356 | $4,151 |
Interest and other income, net | 99 | 164 |
Income before income taxes | 1,204 | 1,343 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' |
Derivative Instruments Gain Loss [Line Items] | ' | ' |
Product sales | 0 | -4 |
Interest and other income, net | 14 | -140 |
Income before income taxes | 14 | -144 |
Cash flow hedge [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' |
Derivative Instruments Gain Loss [Line Items] | ' | ' |
Income before income taxes | 14 | -144 |
Cash flow hedge [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Foreign currency contracts [Member] | ' | ' |
Derivative Instruments Gain Loss [Line Items] | ' | ' |
Product sales | 0 | -4 |
Cash flow hedge [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Cross currency swap contracts [Member] | ' | ' |
Derivative Instruments Gain Loss [Line Items] | ' | ' |
Interest and other income, net | $14 | ($140) |
Derivative_instruments_Details2
Derivative instruments (Details 3) (Foreign currency contracts [Member], Interest and other income, net [Member], USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Foreign currency contracts [Member] | Interest and other income, net [Member] | ' | ' |
Location in the Condensed Consolidated Statements of Income and the amount of gain (loss) recognized in earnings for our derivative instruments not designated as hedging instruments | ' | ' |
Amount of gain (loss) recognized in interest and other income, net | $2 | ($16) |
Derivative_instruments_Details3
Derivative instruments (Details 4) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets | ' | ' |
Total derivative assets, fair value | $261 | $246 |
Liabilities | ' | ' |
Total derivative liabilities, fair value | 206 | 272 |
Derivatives designated as hedging instrument [Member] | ' | ' |
Assets | ' | ' |
Total derivative assets, fair value | 259 | 246 |
Liabilities | ' | ' |
Total derivative liabilities, fair value | 204 | 269 |
Derivatives not designated as hedging instrument [Member] | ' | ' |
Assets | ' | ' |
Total derivative assets, fair value | 2 | 0 |
Liabilities | ' | ' |
Total derivative liabilities, fair value | 2 | 3 |
Cross currency swap contracts [Member] | Other current assets/Other noncurrent assets [Member] | Derivatives designated as hedging instrument [Member] | ' | ' |
Assets | ' | ' |
Total derivative assets, fair value | 195 | 193 |
Cross currency swap contracts [Member] | Accrued liabilities/Other noncurrent liabilities [Member] | Derivatives designated as hedging instrument [Member] | ' | ' |
Liabilities | ' | ' |
Total derivative liabilities, fair value | 2 | 4 |
Foreign currency contracts [Member] | Other current assets/Other noncurrent assets [Member] | Derivatives designated as hedging instrument [Member] | ' | ' |
Assets | ' | ' |
Total derivative assets, fair value | 60 | 53 |
Foreign currency contracts [Member] | Other current assets [Member] | Derivatives not designated as hedging instrument [Member] | ' | ' |
Assets | ' | ' |
Total derivative assets, fair value | 2 | 0 |
Foreign currency contracts [Member] | Accrued liabilities/Other noncurrent liabilities [Member] | Derivatives designated as hedging instrument [Member] | ' | ' |
Liabilities | ' | ' |
Total derivative liabilities, fair value | 99 | 104 |
Foreign currency contracts [Member] | Accrued liabilities [Member] | Derivatives not designated as hedging instrument [Member] | ' | ' |
Liabilities | ' | ' |
Total derivative liabilities, fair value | 2 | 3 |
Interest rate swap contracts [Member] | Other current assets/Other noncurrent assets [Member] | Derivatives designated as hedging instrument [Member] | ' | ' |
Assets | ' | ' |
Total derivative assets, fair value | 4 | 0 |
Interest rate swap contracts [Member] | Accrued liabilities/Other noncurrent liabilities [Member] | Derivatives designated as hedging instrument [Member] | ' | ' |
Liabilities | ' | ' |
Total derivative liabilities, fair value | $103 | $161 |
Derivative_instruments_Details4
Derivative instruments (Details Textual) (USD $) | 3 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 |
Interest expense, net [Member] | Interest expense, net [Member] | Foreign currency and cross currency swap contracts [Member] | Forward interest rate contracts [Member] | Rate adjustment to LIBOR on interest rate swap agreements [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | ||
Foreign currency forward contracts [Member] | Foreign currency forward contracts [Member] | Foreign currency option contracts [Member] | Foreign currency option contracts [Member] | Interest rate swap [Member] | Foreign currency forward contracts [Member] | Foreign currency forward contracts [Member] | |||||||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Length of time hedged in foreign currency contracts | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative, notional amount | ' | ' | ' | ' | ' | ' | $3,900 | $4,000 | $366 | $516 | $4,400 | $977 | $999 |
Amounts expected to be reclassified from AOCI into earnings over the next 12 months - losses | ' | ' | ' | 39 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amounts expected to be reclassified from AOCI into earnings over the next 12 months - losses | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative lower range variable interest rate | ' | ' | ' | ' | ' | 1.10% | ' | ' | ' | ' | ' | ' | ' |
Derivative higher range variable interest rate | ' | ' | ' | ' | ' | 2.00% | ' | ' | ' | ' | ' | ' | ' |
Unrealized gain (loss) on the hedged debt | ' | -62 | -22 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrealized gain (loss) on interest rate swaps | ' | $62 | $22 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Subsequent_event_Details
Subsequent event (Details) (Glaxo [Member], USD $) | Mar. 31, 2014 |
In Millions, unless otherwise specified | |
Glaxo [Member] | ' |
Subsequent Event [Line Items] | ' |
Amount of payments to be made in exchange for the early termination of the Collaboration Agreement | $275 |