Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 27, 2020 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-37702 | |
Entity Registrant Name | Amgen Inc. | |
Entity Central Index Key | 0000318154 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 95-3540776 | |
Entity Address, Address Line One | One Amgen Center Drive | |
Entity Address, City or Town | Thousand Oaks | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 91320-1799 | |
City Area Code | 805 | |
Local Phone Number | 447-1000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 588,247,399 | |
The NASDAQ Global Select Market [Member] | Common Stock [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common stock, $0.0001 par value | |
Trading Symbol | AMGN | |
Security Exchange Name | NASDAQ | |
New York Stock Exchange [Member] | 1.250% Senior Notes Due 2022 [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.250% Senior Notes Due 2022 | |
Trading Symbol | AMGN22 | |
Security Exchange Name | NYSE | |
New York Stock Exchange [Member] | 2.00% Senior Notes Due 2026 [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 2.00% Senior Notes Due 2026 | |
Trading Symbol | AMGN26 | |
Security Exchange Name | NYSE |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 1,825 | $ 1,992 |
Other comprehensive (loss) income, net of reclassification adjustments and taxes: | ||
Losses on foreign currency translation | (52) | (13) |
(Losses) gains on cash flow hedges | (61) | 45 |
(Losses) gains on available-for-sale securities | (19) | 221 |
Other | (2) | 0 |
Other comprehensive (loss) income, net of taxes | (134) | 253 |
Comprehensive income | $ 1,691 | $ 2,245 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues: | ||
Total revenues | $ 6,161 | $ 5,557 |
Operating expenses: | ||
Cost of sales | 1,513 | 1,055 |
Research and development | 952 | 879 |
Selling, general and administrative | 1,316 | 1,154 |
Other | 25 | (3) |
Total operating expenses | 3,806 | 3,085 |
Operating income | 2,355 | 2,472 |
Interest expense, net | 346 | 343 |
Interest and other income, net | 11 | 185 |
Income before income taxes | 2,020 | 2,314 |
Provision for income taxes | 195 | 322 |
Net income | $ 1,825 | $ 1,992 |
Earnings per share: | ||
Basic (in usd per share) | $ 3.09 | $ 3.20 |
Diluted (in usd per share) | $ 3.07 | $ 3.18 |
Shares used in calculation of earnings per share: | ||
Basic (in shares) | 590 | 622 |
Diluted (in shares) | 594 | 626 |
Product sales [Member] | ||
Revenues: | ||
Product sales | $ 5,894 | $ 5,286 |
Other revenues [Member] | ||
Revenues: | ||
Total revenues | $ 267 | $ 271 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 7,687 | $ 6,037 |
Marketable securities | 325 | 2,874 |
Trade receivables, net | 5,009 | 4,057 |
Inventories | 3,682 | 3,584 |
Other current assets | 2,110 | 1,888 |
Total current assets | 18,813 | 18,440 |
Property, plant and equipment, net | 4,879 | 4,928 |
Intangible assets, net | 18,653 | 19,413 |
Goodwill | 14,683 | 14,703 |
Other assets | 4,641 | 2,223 |
Total assets | 61,669 | 59,707 |
Current liabilities: | ||
Accounts payable | 1,338 | 1,371 |
Accrued liabilities | 8,649 | 8,511 |
Current portion of long-term debt | 1,840 | 2,953 |
Total current liabilities | 11,827 | 12,835 |
Long-term debt | 30,008 | 26,950 |
Long-term deferred tax liabilities | 427 | 606 |
Long-term tax liabilities | 8,111 | 8,037 |
Other noncurrent liabilities | 1,811 | 1,606 |
Contingencies and commitments | ||
Stockholders’ equity: | ||
Common stock and additional paid-in capital; $0.0001 par value; 2,750.0 shares authorized; outstanding — 588.0 shares in 2020 and 591.4 shares in 2019 | 31,525 | 31,531 |
Accumulated deficit | (21,378) | (21,330) |
Accumulated other comprehensive loss | (662) | (528) |
Total stockholders’ equity | 9,485 | 9,673 |
Total liabilities and stockholders’ equity | $ 61,669 | $ 59,707 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock and additional paid-in capital, par value (in usd per share) | $ 0.0001 | $ 0.0001 |
Common stock and additional paid-in capital, shares authorized | 2,750 | 2,750 |
Common stock and additional paid-in capital, shares outstanding | 588 | 591.4 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Number of shares of common stock [Member] | Common stock and additional paid-in capital [Member] | Accumulated deficit [Member] | Accumulated other comprehensive loss [Member] |
Beginning Balance, Shares at Dec. 31, 2018 | 629.6 | ||||
Balance as of beginning of period at Dec. 31, 2018 | $ 12,500 | $ 31,246 | $ (17,977) | $ (769) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income for basic and diluted EPS | 1,992 | 1,992 | |||
Other comprehensive income (loss), net of taxes | 253 | 253 | |||
Dividends declared on common stock | (879) | (879) | |||
Issuance of common stock in connection with the Company’s equity award programs, Shares | 0.7 | ||||
Issuance of common stock in connection with the Company’s equity award programs | 6 | 6 | |||
Stock-based compensation expense | 64 | 64 | |||
Tax impact related to employee stock-based compensation expense | (73) | (73) | |||
Repurchases of common stock, Shares | (15.9) | ||||
Repurchases of common stock | (3,031) | (3,031) | |||
Ending Balance, Shares at Mar. 31, 2019 | 614.4 | ||||
Balance as of end of period at Mar. 31, 2019 | $ 10,832 | 31,243 | (19,895) | (516) | |
Beginning Balance, Shares at Dec. 31, 2019 | 591.4 | 591.4 | |||
Balance as of beginning of period at Dec. 31, 2019 | $ 9,673 | 31,531 | (21,330) | (528) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income for basic and diluted EPS | 1,825 | 1,825 | |||
Other comprehensive income (loss), net of taxes | (134) | (134) | |||
Dividends declared on common stock | (938) | (938) | |||
Issuance of common stock in connection with the Company’s equity award programs, Shares | 0.9 | ||||
Issuance of common stock in connection with the Company’s equity award programs | 10 | 10 | |||
Stock-based compensation expense | 52 | 52 | |||
Tax impact related to employee stock-based compensation expense | (68) | (68) | |||
Repurchases of common stock, Shares | (4.3) | ||||
Repurchases of common stock | $ (933) | (933) | |||
Ending Balance, Shares at Mar. 31, 2020 | 588 | 588 | |||
Balance as of end of period at Mar. 31, 2020 | $ 9,485 | $ 31,525 | $ (21,378) | $ (662) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 1 Months Ended | 3 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||
Common stock, dividends declared per share (in usd per share) | $ 1.60 | $ 1.60 | $ 1.60 | $ 1.45 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 1,825 | $ 1,992 |
Depreciation, amortization and other | 897 | 495 |
Deferred income taxes | (84) | (50) |
Other items, net | 107 | 24 |
Changes in operating assets and liabilities, net of acquisition: | ||
Trade receivables, net | (955) | (207) |
Inventories | (113) | (28) |
Other assets | 319 | (249) |
Accounts payable | (25) | (112) |
Accrued income taxes, net | 137 | 277 |
Long-term tax liabilities | 74 | 100 |
Other liabilities | (48) | (397) |
Net cash provided by operating activities | 2,134 | 1,845 |
Cash flows from investing activities: | ||
Purchases of marketable securities | (129) | (6,898) |
Proceeds from sales of marketable securities | 2,574 | 125 |
Proceeds from maturities of marketable securities | 113 | 10,455 |
Purchases of property, plant and equipment | (142) | (116) |
Purchases of equity method investments | (2,645) | (5) |
Other | (1) | (6) |
Net cash (used in) provided by investing activities | (230) | 3,555 |
Cash flows from financing activities: | ||
Proceeds from Issuance of Long-term Debt | 4,963 | 0 |
Repayment of debt | (3,250) | (1,000) |
Repurchases of common stock | (961) | (3,032) |
Dividends paid | (945) | (901) |
Other | (61) | (54) |
Net cash used in financing activities | (254) | (4,987) |
Increase in cash and cash equivalents | 1,650 | 413 |
Cash and cash equivalents at beginning of period | 6,037 | 6,945 |
Cash and cash equivalents at end of period | $ 7,687 | $ 7,358 |
Summary of significant accounti
Summary of significant accounting policies | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 and 2019 , 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, 2019 . 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 U.S. generally accepted accounting principles (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 $8.5 billion and $8.4 billion as of March 31, 2020 and December 31, 2019 , respectively. Equity method investments The equity method of accounting is used for equity investments that give us the ability to exert significant influence, but not control, over an investee based on such factors as our ownership percentage, voting and other shareholder rights, board of director representation and the existence of other collaborative or business relationships. The equity method of accounting requires us to allocate the difference between the fair value of securities acquired and our proportionate share of the carrying value of the underlying assets (the basis difference) to various items and amortize such differences over their useful lives. Our share of the investees’ earnings or losses and amortization of basis differences, if any, are recorded one quarter in arrears in Interest and other income, net, in the Condensed Consolidated Statements of Income. We record impairment losses on our equity method investments if we deem the impairment to be other-than-temporary. We deem an impairment to be other-than-temporary based on various factors including, but not limited to, the length of time the fair value is below the carrying value, volatility of the security price and our intent and ability to retain the investment to allow for a recovery in fair value. Recent accounting pronouncements In June 2016, the Financial Accounting Standards Board (FASB) issued a new accounting standard that amends the guidance for measuring and recording credit losses on financial assets measured at amortized cost by replacing the incurred-loss model with an expected-loss model. Accordingly, these financial assets will be presented at the net amount expected to be collected. This new standard also requires that credit losses related to available-for-sale debt securities be recorded as an allowance through net income rather than reducing the carrying amount under the current, other-than-temporary-impairment model. We adopted this standard as of January 1, 2020, using a modified-retrospective approach. Adoption of the standard did not have a material impact on our condensed consolidated financial statements. In March 2020, the FASB issued a new accounting standard to ease the financial reporting burdens of the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates, commonly referred to as reference rate reform. The new standard provides temporary optional expedients and exceptions to current GAAP guidance on contract modifications and hedge accounting. Specifically, a modification to transition to an alternative reference rate is treated as an event that does not require contract remeasurement or reassessment of a previous accounting treatment. Moreover, for all types of hedging relationships, an entity may change the reference rate without having to dedesignate the hedging relationship. The standard is generally effective for all contract modifications made and hedging relationships evaluated through December 31, 2022, as a result of reference rate reform. We are currently evaluating the impact that this new standard will have on our condensed consolidated financial statements. |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues We operate in one business segment: human therapeutics. Therefore, results of our operations are reported on a consolidated basis for purposes of segment reporting, consistent with internal management reporting. Revenues by product and by geographic area, based on customers’ locations, are presented below. Rest-of-world (ROW) revenues relate to products that are sold primarily in Europe. Revenues were as follows (in millions): Three months ended March 31, 2020 2019 US ROW Total US ROW Total Enbrel ® (etanercept) $ 1,117 $ 36 $ 1,153 $ 1,106 $ 45 $ 1,151 Prolia ® (denosumab) 422 232 654 390 202 592 Neulasta ® (pegfilgrastim) 534 75 609 893 128 1,021 XGEVA ® (denosumab) 355 126 481 356 115 471 Otezla ® (apremilast) 377 102 479 — — — Aranesp ® (darbepoetin alfa) 175 247 422 182 232 414 KYPROLIS ® (carfilzomib) 187 93 280 154 91 245 Repatha ® (evolocumab) 124 105 229 83 58 141 Other products 988 599 1,587 827 424 1,251 Total product sales (1) $ 4,279 $ 1,615 5,894 $ 3,991 $ 1,295 5,286 Other revenues 267 271 Total revenues $ 6,161 $ 5,557 ____________ (1) Hedging gains and losses, which are included in product sales, were not material for the three months ended March 31, 2020 and 2019 |
Income taxes
Income taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes The effective tax rates for the three months ended March 31, 2020 and 2019, were 9.7% and 13.9% , respectively. The decrease in our effective tax rate for the three months ended March 31, 2020 , was due primarily to amortization related to the Otezla ® acquisition, changes in jurisdictional mix of earnings and certain favorable items in the quarter. The effective tax rates differ from the federal statutory rate primarily as a result of foreign earnings from the Company’s operations conducted in Puerto Rico, a territory of the United States that is treated as a foreign jurisdiction for U.S. tax purposes and are subject to tax incentive grants through 2035. In addition, the Company’s operations conducted in Singapore are subject to a tax incentive grant through 2034. These earnings are also subject to U.S. tax at a reduced rate of 10.5%. The U.S. territory of Puerto Rico imposes an excise tax on the gross intercompany purchase price of goods and services from our manufacturer in Puerto Rico. The rate of 4% is effective through December 31, 2027. 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. 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 examined by tax authorities in those jurisdictions. Significant disputes may arise with tax authorities involving issues regarding the timing and amount of deductions, the use of tax credits and allocations of income and expenses among various tax jurisdictions because of differing interpretations of tax laws, regulations and relevant facts. As previously disclosed, we received a Revenue Agent Report (RAR) from the Internal Revenue Service (IRS) for the years 2010, 2011 and 2012. The RAR proposes to make significant adjustments that relate primarily to the allocation of profits between certain of our entities in the United States and the U.S. territory of Puerto Rico. In November 2017, we received a modified RAR that revised the IRS’s calculations but continued to propose substantial adjustments. We disagree with the proposed adjustments and calculations and are pursuing resolution with the IRS administrative appeals office, which currently has jurisdiction over the matter. If we deem necessary, we will vigorously contest the proposed adjustments through the judicial process. In addition, in April, we received draft notice of proposed adjustments (NOPAs) from the IRS for the years 2013, 2014 and 2015, which are similar to the proposed adjustments for the years 2010, 2011 and 2012 that relate primarily to the allocation of profits between certain of our entities in the United States and the U.S. territory of Puerto Rico. We disagree with the proposed adjustments and calculations and intend to contest them. We are also currently under examination by a number of other state and foreign tax jurisdictions. Final resolution of these complex matters is not likely within the next 12 months and could have a material impact on our condensed consolidated financial statements. We believe our accrual for income tax liabilities is appropriate based on past experience, interpretations of tax law and judgments about potential actions by tax authorities; however, due to the complexity of the provision for income taxes, the ultimate resolution of any tax matters may result in payments substantially greater or less than amounts accrued. We are no longer subject to U.S. federal income tax examinations for years ended on or before December 31, 2009. During the three months ended March 31, 2020 , the gross amounts of our unrecognized tax benefits (UTBs) increased $50 million as a result of tax positions taken during the current year. Substantially all of the UTBs as of March 31, 2020 , if recognized, would affect our effective tax rate. |
Earnings per share
Earnings per share | 3 Months Ended |
Mar. 31, 2020 | |
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 primarily shares that may be issued under our stock option, restricted stock and performance unit award programs (collectively, dilutive securities), as determined by using the treasury stock method. The computations for basic and diluted EPS were as follows (in millions, except per-share data): Three months ended 2020 2019 Income (Numerator): Net income for basic and diluted EPS $ 1,825 $ 1,992 Shares (Denominator): Weighted-average shares for basic EPS 590 622 Effect of dilutive securities 4 4 Weighted-average shares for diluted EPS 594 626 Basic EPS $ 3.09 $ 3.20 Diluted EPS $ 3.07 $ 3.18 For the three months ended March 31, 2020 and 2019 , the number of antidilutive employee stock-based awards excluded from the computation of diluted EPS was not significant. |
Collaborations
Collaborations | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Collaborations | Collaborations On January 2, 2020, we closed our strategic collaboration with BeiGene, Ltd. (BeiGene) to expand our oncology presence in China. Under the collaboration, BeiGene will commercialize XGEVA ® , KYPROLIS ® and BLINCYTO ® (blinatumomab) in China, and Amgen will share profits and losses equally during the initial product-specific commercialization periods; thereafter, product rights may revert to Amgen, and Amgen will pay royalties to BeiGene on sales in China. In addition, we will jointly develop a portion of our oncology portfolio with BeiGene sharing in global research and development (R&D) costs by providing cash and development services up to $1.25 billion . Upon regulatory approval, BeiGene will assume commercialization rights in China for a specified period, and Amgen and BeiGene will share profits equally until certain of these product rights revert to Amgen. Upon return of the product rights, Amgen will pay royalties to BeiGene on sales in China for a specified period. For product sales outside of China, Amgen will also pay BeiGene royalties. For the three months ended March 31, 2020 , costs recovered from BeiGene for oncology product candidates were $57 million and were recorded in R&D expense in the Condensed Consolidated Statements of Income. For the three months ended March 31, 2020 , no profit share payments or product sales were recorded between Amgen and BeiGene. In connection with this collaboration, we acquired an ownership interest in BeiGene. See Note 6, Investments. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Available-for-sale investments The amortized cost, gross unrealized gains, gross unrealized losses and fair values of interest-bearing securities, which are considered available-for-sale, by type of security were as follows (in millions): Types of securities as of March 31, 2020 Amortized cost Gross unrealized gains Gross unrealized losses Fair values U.S. Treasury notes $ 173 $ 3 $ — $ 176 U.S. Treasury bills 900 — — 900 Corporate debt securities: Financial 12 — — 12 Industrial 12 — — 12 Other — — — — Residential-mortgage-backed securities — — — — Money market mutual funds 5,762 — — 5,762 Other short-term interest-bearing securities 432 — — 432 Total interest-bearing securities $ 7,291 $ 3 $ — $ 7,294 Types of securities as of December 31, 2019 Amortized cost Gross unrealized gains Gross unrealized losses Fair values U.S. Treasury notes $ 359 $ 1 $ — $ 360 U.S. Treasury bills — — — — Corporate debt securities: Financial 1,108 13 — 1,121 Industrial 824 10 — 834 Other 195 3 — 198 Residential-mortgage-backed securities 181 1 — 182 Money market mutual funds 5,250 — — 5,250 Other short-term interest-bearing securities 289 — — 289 Total interest-bearing securities $ 8,206 $ 28 $ — $ 8,234 The fair values of interest-bearing securities by location in the Condensed Consolidated Balance Sheets were as follows (in millions): Condensed Consolidated Balance Sheets locations March 31, December 31, Cash and cash equivalents $ 6,969 $ 5,360 Marketable securities 325 2,874 Total interest-bearing securities $ 7,294 $ 8,234 Cash and cash equivalents in the above table excludes bank account cash of $718 million and $677 million as of March 31, 2020 and December 31, 2019 , respectively. The fair values of interest-bearing securities by contractual maturity, except for residential-mortgage-backed securities that do not have a single maturity date, were as follows (in millions): Contractual maturities March 31, December 31, Maturing in one year or less $ 7,165 $ 5,629 Maturing after one year through three years 129 2,304 Maturing after three years through five years — 119 Residential mortgage-backed securities — 182 Total interest-bearing securities $ 7,294 $ 8,234 For the three months ended March 31, 2020 and 2019 , realized gains on interest-bearing securities were $37 million and $1 million , respectively, and realized losses on interest-bearing securities were $4 million and $5 million , respectively. Realized gains and losses on interest-bearing securities are recorded in Interest and other income, net, in the Condensed Consolidated Statements of Income. The cost of securities sold is based on the specific-identification method. The primary objective of our investment portfolio is to maintain 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 it places restrictions on maturities and concentration by asset class and issuer. As of March 31, 2020 and December 31, 2019, aggregated gross unrealized losses of available-for-sale investments were not material, and accordingly, no allowance for credit losses was recorded as of March 31, 2020. Equity securities We held investments in equity securities with readily determinable fair values of $220 million and $303 million as of March 31, 2020 and December 31, 2019 , respectively, which are included in Other assets in the Condensed Consolidated Balance Sheets. Gains and losses recognized on equity securities with readily determinable fair values, including gains and losses recognized on sales, were not material for the three months ended March 31, 2020 and 2019 . We held investments of $183 million and $176 million in equity securities without readily determinable fair values as of March 31, 2020 and December 31, 2019 , respectively, which are included in Other assets in the Condensed Consolidated Balance Sheets. Adjustments to the carrying values of these securities were not material for the three months ended March 31, 2020 and 2019 . Equity method investments Limited partnerships We held limited partnership investments of $331 million and $320 million as of March 31, 2020 and December 31, 2019 , respectively, which are included in Other assets in the Condensed Consolidated Balance Sheets. These investments, primarily investment funds of early-stage biotechnology companies, are accounted for by using the equity method of accounting and measured by using our proportionate share of the net asset values of the underlying investments held by the limited partnerships as a practical expedient. These investments are typically redeemable only through distributions upon liquidation of the underlying assets. As of March 31, 2020 , unfunded additional commitments to be made for these investments during the next several years were not material. Gains and losses recognized on our limited partnership investments were not material for the three months ended March 31, 2020 and 2019 . BeiGene On January 2, 2020, we acquired a 20.5% ownership interest in BeiGene for $2.8 billion , of which $2.6 billion was attributed to the fair value of equity securities upon closing, with the remainder attributed to prepaid R&D. Our equity investment in BeiGene is included in Other assets in the Condensed Consolidated Balance Sheets. The fair value of equity securities acquired exceeded our proportionate share of the carrying value of the underlying net assets of BeiGene by approximately $2.4 billion . This investment is accounted for by using the equity method of accounting, which requires us to identify and allocate amounts to the items that give rise to the basis difference and to amortize these items over their useful lives. This amortization, along with our share of the results of operations of BeiGene, will be recognized in Interest and other income, net, in our Condensed Consolidated Statements of Income. Recognition will occur one quarter in arrears, beginning in the second quarter of 2020. The basis difference was allocated to finite-lived intangible assets, indefinite-lived intangible assets, equity-method goodwill and related deferred taxes. The finite-lived intangible assets will be amortized over a period ranging from 8 to 15 years . As of March 31, 2020 , the carrying and fair values of our approximately 20.5% ownership interest in BeiGene totaled $2.6 billion and $2.0 billion , respectively. As of March 31, 2020 , we believe the carrying value of our equity investment in BeiGene is fully recoverable. See Note 1, Summary of significant accounting policies, for factors considered in determining our conclusion. For information on a collaboration agreement we entered into with BeiGene in connection with this investment, see Note 5, Collaborations. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following (in millions): March 31, December 31, Raw materials $ 446 $ 358 Work in process 2,192 2,227 Finished goods 1,044 999 Total inventories $ 3,682 $ 3,584 |
Goodwill and other intangible a
Goodwill and other intangible assets | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and other intangible assets | Goodwill and other intangible assets Goodwill The change in the carrying amount of goodwill was as follows (in millions): Three months ended Beginning balance $ 14,703 Currency translation adjustment (20 ) Ending balance $ 14,683 Other intangible assets Other intangible assets consisted of the following (in millions): March 31, 2020 December 31, 2019 Gross carrying amounts Accumulated amortization Other intangible assets, net Gross carrying amounts Accumulated amortization Other intangible assets, net Finite-lived intangible assets: Developed-product-technology rights $ 25,549 $ (8,876 ) $ 16,673 $ 25,575 $ (8,322 ) $ 17,253 Licensing rights 3,746 (2,494 ) 1,252 3,761 (2,398 ) 1,363 Marketing-related rights 1,375 (979 ) 396 1,382 (965 ) 417 Research and development technology rights 1,269 (967 ) 302 1,273 (947 ) 326 Total finite-lived intangible assets 31,939 (13,316 ) 18,623 31,991 (12,632 ) 19,359 Indefinite-lived intangible assets: In-process research and development 30 — 30 54 — 54 Total other intangible assets $ 31,969 $ (13,316 ) $ 18,653 $ 32,045 $ (12,632 ) $ 19,413 Developed-product-technology rights consists of rights related to marketed products. Licensing rights consists primarily of contractual rights to receive future milestone, royalty and profit-sharing payments; 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. Marketing-related rights consists primarily of rights related to the sale and distribution of marketed products. R&D technology rights pertains to technologies used in R&D that have alternative future uses. In-process research and development (IPR&D) consists of R&D projects acquired in a business combination that are not complete at the time of acquisition due to remaining technological risks and/or lack of receipt of required regulatory approvals. We review IPR&D projects for impairment annually, whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable and upon the establishment of technological feasibility or regulatory approval. During the three months ended March 31, 2020 and 2019 , we recognized amortization associated with our finite-lived intangible assets of $709 million and $315 million , respectively. Amortization of intangible assets is included primarily in Cost of sales in the Condensed Consolidated Statements of Income. The total estimated amortization for our finite-lived intangible assets for the remaining nine months ending December 31, 2020 , and the years ending December 31, 2021 , 2022 , 2023 , 2024 and 2025 , are $2.1 billion , $2.6 billion , $2.5 billion , $2.4 billion , $2.4 billion and $2.2 billion , respectively. |
Financing arrangements
Financing arrangements | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Financing arrangements | Financing arrangements Our borrowings consisted of the following (in millions): March 31, December 31, 4.50% notes due 2020 (4.50% 2020 Notes) $ — $ 300 2.125% notes due 2020 (2.125% 2020 Notes) 750 750 Floating Rate Notes due 2020 300 300 2.20% notes due 2020 (2.20% 2020 Notes) 700 700 3.45% notes due 2020 (3.45% 2020 Notes) — 900 4.10% notes due 2021 (4.10% 2021 Notes) — 1,000 1.85% notes due 2021 (1.85% 2021 Notes) — 750 3.875% notes due 2021 (3.875% 2021 Notes) 1,450 1,750 1.25% €1,250 million notes due 2022 (1.25% 2022 euro Notes) 1,379 1,402 2.70% notes due 2022 (2.70% 2022 Notes) 500 500 2.65% notes due 2022 (2.65% 2022 Notes) 1,500 1,500 3.625% notes due 2022 (3.625% 2022 Notes) 750 750 0.41% CHF700 million bonds due 2023 (0.41% 2023 Swiss franc Bonds) 728 725 2.25% notes due 2023 (2.25% 2023 Notes) 750 750 3.625% notes due 2024 (3.625% 2024 Notes) 1,400 1,400 1.90% notes due 2025 (1.90% 2025 Notes) 500 — 3.125% notes due 2025 (3.125% 2025 Notes) 1,000 1,000 2.00% €750 million notes due 2026 (2.00% 2026 euro Notes) 827 841 2.60% notes due 2026 (2.60% 2026 Notes) 1,250 1,250 5.50% £475 million notes due 2026 (5.50% 2026 pound sterling Notes) 590 630 2.20% notes due 2027 (2.20% 2027 Notes) 750 — 3.20% notes due 2027 (3.20% 2027 Notes) 1,000 1,000 4.00% £700 million notes due 2029 (4.00% 2029 pound sterling Notes) 869 928 2.45% notes due 2030 (2.45% 2030 Notes) 1,250 — 6.375% notes due 2037 (6.375% 2037 Notes) 552 552 6.90% notes due 2038 (6.90% 2038 Notes) 291 291 6.40% notes due 2039 (6.40% 2039 Notes) 466 466 3.15% notes due 2040 (3.15% 2040 Notes) 1,250 — 5.75% notes due 2040 (5.75% 2040 Notes) 412 412 4.95% notes due 2041 (4.95% 2041 Notes) 600 600 5.15% notes due 2041 (5.15% 2041 Notes) 974 974 5.65% notes due 2042 (5.65% 2042 Notes) 487 487 5.375% notes due 2043 (5.375% 2043 Notes) 261 261 4.40% notes due 2045 (4.40% 2045 Notes) 2,250 2,250 4.563% notes due 2048 (4.563% 2048 Notes) 1,415 1,415 3.375% notes due 2050 (3.375% 2050 Notes) 1,250 — 4.663% notes due 2051 (4.663% 2051 Notes) 3,541 3,541 Other notes due 2097 100 100 Unamortized bond discounts, premiums and issuance costs, net (892 ) (868 ) Fair value adjustments 648 296 Total carrying value of debt 31,848 29,903 Less current portion (1,840 ) (2,953 ) Total long-term debt $ 30,008 $ 26,950 There are no material differences between the effective interest rates and coupon rates of any of our borrowings, except for the 4.563% 2048 Notes and the 4.663% 2051 Notes, which have effective interest rates of 6.3% and 5.6% , respectively. Debt issuances and repayments During the three months ended March 31, 2020, we issued $5.0 billion of debt, consisting of the 1.90% 2025 Notes, the 2.20% 2027 Notes, the 2.45% 2030 Notes, the 3.15% 2040 Notes and the 3.375% 2050 Notes. In the event of a change-in-control triggering event, as defined in the terms of the notes, we may be required to purchase all or a portion of these notes at a price equal to 101% of the principal amount of the notes plus accrued and unpaid interest. In addition, these notes may be redeemed at any time at our option, in whole or in part, at the principal amount of the notes being redeemed plus accrued and unpaid interest and a “make-whole” amount, which are defined by the terms of the notes. The notes may be redeemed without payment of make-whole amounts if redemption occurs during specified periods of time immediately prior to the maturity of the notes. Such time periods range from one month to six months prior to maturity. A portion of the proceeds from the issuance of these notes were used to redeem the 3.45% 2020 Notes, the 4.10% 2021 Notes, the 1.85% 2021 Notes and $300 million aggregate principal amount of our 3.875% 2021 Notes. In connection with the redemption of these notes, we paid a total of $50 million in make-whole amounts plus associated accrued and unpaid interest, all of which was recognized in Interest expense, net, in the Condensed Consolidated Statements of Income during the three months ended March 31, 2020. In addition to these redemptions, the 4.50% 2020 Notes matured and were repaid during the three months ended March 31, 2020. Interest rate swaps In connection with the redemption of certain of the notes discussed above, associated interest rate swap contracts with an aggregate notional value of $2.2 billion were terminated. Additionally, due to historically low interest rates, during the three months ended March 31, 2020, we terminated interest rate swaps with an aggregate notional amount of $5.2 billion that hedged the 3.625% 2024 Notes, 2.60% 2026 Notes, 4.663% 2051 Notes and portions of our 3.625% 2022 Notes and 3.125% 2025 Notes, which resulted in the receipt of $576 million of cash and reduced counterparty credit risk. Immediately following termination of these contracts, we entered into new interest rate swap agreements at then-current interest rates on the same $5.2 billion principal amount of notes. See Note 12, Derivative instruments. The effective interest rates on notes for which we have entered into interest rate swap contracts and the related notional amounts of these contracts were as follows (dollar amounts in millions): March 31, 2020 December 31, 2019 Notes Notional amounts Effective interest rates Notional amounts Effective interest rates 3.45% 2020 Notes $ — LIBOR + 1.1% $ 900 LIBOR + 1.1% 4.10% 2021 Notes — LIBOR + 1.7% 1,000 LIBOR + 1.7% 3.875% 2021 Notes 1,450 LIBOR + 2.0% 1,750 LIBOR + 2.0% 3.625% 2022 Notes 750 LIBOR + 2.7% 750 LIBOR + 1.6% 3.625% 2024 Notes 1,400 LIBOR + 3.2% 1,400 LIBOR + 1.4% 3.125% 2025 Notes 1,000 LIBOR + 1.8% 1,000 LIBOR + 0.9% 2.60% 2026 Notes 1,250 LIBOR + 1.8% 1,250 LIBOR + 0.3% 4.663% 2051 Notes (1) 1,500 LIBOR + 2.6% 1,500 LIBOR + 0.0% Total notional amounts $ 7,350 $ 9,550 ____________ (1) Excludes an additional 1.5% of interest for the difference between the coupon rate paid to note holders and the fixed rate received under the interest rate swap contracts. |
Stockholders' equity
Stockholders' equity | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Stockholders' equity | Stockholders’ equity Stock repurchase program Activity under our stock repurchase program, on a trade date basis, was as follows (in millions): 2020 2019 Shares Dollars Shares Dollars First quarter 4.3 $ 933 15.9 $ 3,031 In December 2019, our Board of Directors increased the amount authorized under our stock repurchase program by an additional $4.0 billion . As of March 31, 2020 , $5.5 billion of authorization remained available under our stock repurchase program. Dividends In March 2020, the Board of Directors declared a quarterly cash dividend of $1.60 per share, which will be paid in June 2020. In December 2019, the Board of Directors declared a quarterly cash dividend of $1.60 per share, which was paid in March 2020. Accumulated other comprehensive income (loss) The components of Accumulated other comprehensive income (loss) (AOCI) were as follows (in millions): Foreign currency translation Cash flow hedges Available-for-sale securities Other AOCI Balance as of December 31, 2019 $ (718 ) $ 175 $ 22 $ (7 ) $ (528 ) Foreign currency translation adjustments (52 ) — — — (52 ) Unrealized (losses) gains — (162 ) 8 — (154 ) Reclassification adjustments to income — 84 (33 ) — 51 Other — — — (2 ) (2 ) Income taxes — 17 6 — 23 Balance as of March 31, 2020 $ (770 ) $ 114 $ 3 $ (9 ) $ (662 ) Reclassifications out of AOCI and into earnings were as follows (in millions): Three months ended March 31, Components of AOCI 2020 2019 Condensed Consolidated Statements of Income locations Cash flow hedges: Foreign currency contract gains $ 49 $ 14 Product sales Cross-currency swap contract losses (133 ) (42 ) Interest and other income, net (84 ) (28 ) Income before income taxes 18 6 Provision for income taxes $ (66 ) $ (22 ) Net income Available-for-sale securities: Net realized gains (losses) $ 33 $ (4 ) Interest and other income, net (7 ) — Provision for income taxes $ 26 $ (4 ) Net income Three months ended March 31, |
Fair value measurement
Fair value measurement | 3 Months Ended |
Mar. 31, 2020 | |
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 an 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 an 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 values of each major class of the Company’s financial assets and liabilities measured at fair value on a recurring basis were as follows (in millions): Quoted prices in Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Fair value measurement as of March 31, 2020, using: Total Assets: Available-for-sale securities: U.S. Treasury notes $ 176 $ — $ — $ 176 U.S. Treasury bills 900 — — 900 Corporate debt securities: Financial — 12 — 12 Industrial — 12 — 12 Other — — — — Residential-mortgage-backed securities — — — — Money market mutual funds 5,762 — — 5,762 Other short-term interest-bearing securities — 432 — 432 Equity securities 220 — — 220 Derivatives: Foreign currency contracts — 375 — 375 Cross-currency swap contracts — 10 — 10 Interest rate swap contracts — 89 — 89 Total assets $ 7,058 $ 930 $ — $ 7,988 Liabilities: Derivatives: Foreign currency contracts $ — $ 5 $ — $ 5 Cross-currency swap contracts — 657 — 657 Interest rate swap contracts — 23 — 23 Contingent consideration obligations — — 60 60 Total liabilities $ — $ 685 $ 60 $ 745 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Fair value measurement as of December 31, 2019, using: Total Assets: Available-for-sale securities: U.S. Treasury notes $ 360 $ — $ — $ 360 U.S. Treasury bills — — — — Corporate debt securities: Financial — 1,121 — 1,121 Industrial — 834 — 834 Other — 198 — 198 Residential-mortgage-backed securities — 182 — 182 Money market mutual funds 5,250 — — 5,250 Other short-term interest-bearing securities — 289 — 289 Equity securities 303 — — 303 Derivatives: Foreign currency contracts — 224 — 224 Cross-currency swap contracts — 66 — 66 Interest rate swap contracts — 259 — 259 Total assets $ 5,913 $ 3,173 $ — $ 9,086 Liabilities: Derivatives: Foreign currency contracts $ — $ 31 $ — $ 31 Cross-currency swap contracts — 315 — 315 Interest rate swap contracts — — — — Contingent consideration obligations — — 61 61 Total liabilities $ — $ 346 $ 61 $ 407 Interest-bearing and equity securities 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. As of March 31, 2020, our corporate debt securities are investment grade and have maturity dates of three years or less from the balance sheet date. Our corporate debt securities portfolio has weighted-average credit ratings of BBB or equivalent by Standard & Poor’s Financial Services LLC (S&P), BBB+ by Moody’s Investors Service, Inc. (Moody’s) and A– by Fitch Ratings, Inc. (Fitch). We estimate the fair values of these securities by taking into consideration valuations obtained from third-party pricing services. The pricing services use 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. The inputs include reported trades of and broker-dealer quotes on the same or similar securities; issuer credit spreads; benchmark securities; 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. Derivatives All of our foreign currency forward derivative 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 estimate the fair values of these contracts by taking into consideration valuations obtained from a third-party valuation service that uses 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 and obligor credit default swap rates. In addition, inputs for our foreign currency option contracts include implied volatility measures. These inputs, when applicable, are at commonly quoted intervals. See Note 12, 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 estimate the fair values of these contracts by taking into consideration valuations obtained from a third-party valuation service that uses 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 12, 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 estimate the fair values of these contracts by using an income-based industry-standard valuation model for which all significant inputs are observable either directly or indirectly. These inputs include LIBOR, swap rates and obligor credit default swap rates. See Note 12, Derivative instruments. During the three months ended March 31, 2020 and 2019 , there were no material remeasurements to the fair values of assets and liabilities that are not measured at fair value on a recurring basis. Summary of the fair values of other financial instruments Cash equivalents The fair values of cash equivalents approximate their carrying values due to the short-term nature of such financial instruments. Borrowings We estimated the fair values of our borrowings by using Level 2 inputs. As of March 31, 2020 and December 31, 2019 , the aggregate fair values of our borrowings were $35.8 billion and $33.7 billion , respectively, and the carrying values were $31.8 billion and $29.9 billion , respectively. |
Derivative instruments
Derivative instruments | 3 Months Ended |
Mar. 31, 2020 | |
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 such exposures, we use or have used 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 corresponding increases and decreases in the cash flows from our international operating expenses resulting from these foreign currency exchange rate movements. To further reduce our exposure to foreign currency exchange rate fluctuations with regard to our international product sales, we enter into foreign currency forward 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, 2020 and December 31, 2019 , we had outstanding foreign currency forward contracts with aggregate notional amounts of $4.9 billion and $5.0 billion , respectively. We have designated these foreign currency forward contracts, which are primarily euro based, as cash flow hedges. Accordingly, we report the unrealized gains and losses on these contracts in AOCI in the Condensed Consolidated Balance Sheets, and we reclassify them to Product sales in the Condensed Consolidated Statements of Income 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 debt denominated in foreign currencies, we enter into cross-currency swap contracts. Under the terms of such contracts, we paid euros, pounds sterling and Swiss francs and received U.S. dollars for the notional amounts at the inception of the contracts; and based on these notional amounts, we exchange interest payments at fixed rates over the lives of the contracts by paying U.S. dollars and receiving euros, pounds sterling and Swiss francs. In addition, we will pay U.S. dollars to and receive euros, pounds sterling and Swiss francs from the counterparties at the maturities of the contracts for these same notional amounts. The terms of these contracts correspond to the related hedged debt, thereby effectively converting the interest payments and principal repayment on the debt from euros, pounds sterling and Swiss francs to U.S. dollars. We have designated these cross-currency swap contracts as cash flow hedges. Accordingly, the unrealized gains and losses on these contracts are reported in AOCI in the Condensed Consolidated Balance Sheets and reclassified to Interest and other income, net, in the Condensed Consolidated Statements of Income in the same periods during which the hedged debt affects earnings. The notional amounts and interest rates of our cross-currency swaps as of March 31, 2020 , were as follows (notional amounts in millions): Foreign currency U.S. dollars Hedged notes Notional amounts Interest rates Notional amounts Interest rates 1.25% 2022 euro Notes € 1,250 1.3 % $ 1,388 3.2 % 0.41% 2023 Swiss franc Bonds CHF 700 0.4 % $ 704 3.4 % 2.00% 2026 euro Notes € 750 2.0 % $ 833 3.9 % 5.50% 2026 pound sterling Notes £ 475 5.5 % $ 747 6.0 % 4.00% 2029 pound sterling Notes £ 700 4.0 % $ 1,111 4.5 % In connection with the anticipated issuance of long-term fixed-rate debt, we occasionally enter into forward interest rate contracts in order to hedge the variability in cash flows due to changes in the applicable U.S. Treasury rate between the time we enter into these contracts and the time the related debt is issued. Gains and losses on forward interest rate contracts, which are designated as cash flow hedges, are recognized in AOCI i n the Condensed Consolidated Balance Sheets and are amortized into Interest expense, net, in the Condensed Consolidated Statements of Income over the lives of the associated debt issuances. Amounts recognized in connection with forward interest rate swaps during the three months ended March 31, 2020 , and amounts expected to be recognized during the subsequent 12 months are not material. The unrealized gains and losses recognized in AOCI for our derivative instruments designated as cash flow hedges were as follows (in millions): Three months ended Derivatives in cash flow hedging relationships 2020 2019 Foreign currency contracts $ 239 $ 85 Cross-currency swap contracts (401 ) (55 ) Total unrealized (losses) gains $ (162 ) $ 30 Fair value hedges To achieve a desired mix of fixed-rate and floating-rate debt, we entered into interest rate swap contracts that qualified for and were designated as fair value hedges. These interest rate swap contracts effectively convert fixed-rate coupons to floating-rate LIBOR-based coupons over the terms of the related hedge contracts. As of March 31, 2020 and December 31, 2019 , we had interest rate swap contracts with aggregate notional amounts of $7.4 billion and $9.6 billion , respectively, that hedge certain portions of our long-term debt issuances. Interest rate swaps with an aggregate notional value of $2.2 billion were terminated during the three months ended March 31, 2020, in connection with the redemption of certain of our notes. The termination of these interest rate swaps resulted in a gain of $17 million recognized in Interest expense, net, in the Condensed Consolidated Statements of Income. Additionally, we terminated $5.2 billion aggregate notional amount of interest rate swaps, which resulted in the receipt of $576 million from the counterparties that was included in Net cash provided by operating activities in the Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2020. This amount will be recognized in Interest expense, net, in the Condensed Consolidated Statements of Income over the remaining life of the underlying notes. Immediately following the termination of these interest rate swap contracts, we entered into new interest rate swap agreements at then-current interest rates on the same $5.2 billion principal amount of notes. See Note 9, Financing arrangements, for information on our interest rate swaps. For interest rate swap contracts that qualify for and are designated as fair value hedges, we recognize in Interest expense, net, in the Condensed Consolidated Statements of Income 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. If a hedging relationship involving an interest rate swap contract is terminated, the gain or loss realized on contract termination is recorded as an adjustment to the carrying value of the debt and amortized into Interest expense, net, over the remaining life of the previously hedged debt. The hedged liabilities and related cumulative-basis adjustments for fair value hedges of those liabilities were recorded in the Condensed Consolidated Balance Sheets as follows (in millions): Carrying amounts of hedged liabilities (1) Cumulative amounts of fair value hedging adjustments related to the carrying amounts of the hedged liabilities (2) Condensed Consolidated Balance Sheets locations March 31, 2020 December 31, 2019 March 31, 2020 December 31, 2019 Current portion of long-term debt $ 90 $ 903 $ 90 $ 4 Long-term debt $ 7,784 $ 8,814 $ 558 $ 292 ____________ (1) Current portion of long-term debt includes $90 million of carrying value with discontinued hedging relationships as of March 31, 2020 . Long-term debt includes $592 million and $136 million of carrying value with discontinued hedging relationships as of March 31, 2020 and December 31, 2019 , respectively. (2) Current portion of long-term debt includes $90 million of hedging adjustments on discontinued hedging relationships as of March 31, 2020 . Long-term debt includes $492 million and $36 million of hedging adjustments on discontinued hedging relationships as of March 31, 2020 and December 31, 2019 , respectively. Impact of hedging transactions The following tables summarize the amounts recorded in income and expense line items and the effects thereon from fair value and cash flow hedging, including discontinued hedging relationships (in millions): Three months ended March 31, 2020 Product sales Interest and other income, net Interest (expense), net Total amounts recorded in income and (expense) line items presented in the Condensed Consolidated Statements of Income $ 5,894 $ 11 $ (346 ) The effects of cash flow and fair value hedging: Gains (losses) on cash flow hedging relationships reclassified out of AOCI: Foreign currency contracts $ 49 $ — $ — Cross-currency swap contracts $ — $ (133 ) $ — Gains (losses) on fair value hedging relationships—interest rate swap agreements: Hedged items (1) $ — $ — $ 210 Derivatives designated as hedging instruments $ — $ — $ (190 ) Three months ended March 31, 2019 Product sales Interest and other income, net Interest (expense), net Total amounts recorded in income and (expense) line items presented in the Condensed Consolidated Statements of Income $ 5,286 $ 185 $ (343 ) The effects of cash flow and fair value hedging: Gains (losses) on cash flow hedging relationships reclassified out of AOCI: Foreign currency contracts $ 14 $ — $ — Cross-currency swap contracts $ — $ (42 ) $ — (Losses) gains on fair value hedging relationships—interest rate swap agreements: Hedged items (1) $ — $ — $ (130 ) Derivatives designated as hedging instruments $ — $ — $ 133 __________ (1) Gains (losses) on hedged items do not completely offset gains (losses) on the related designated hedging instruments due to amortization of the cumulative amounts of fair value hedging adjustments included in the carrying amount of the hedged debt for discontinued hedging relationships and the recognition of gains on terminated hedges where the corresponding hedged item was paid down in the period. No portions of our cash flow hedge contracts were excluded from the assessment of hedge effectiveness. As of March 31, 2020 , we expected to reclassify $162 million of net gains on our foreign currency and cross-currency swap contracts out of AOCI and into earnings during the next 12 months. Derivatives not designated as hedges To reduce our exposure to foreign currency fluctuations in certain assets and liabilities denominated in foreign currencies, we enter into foreign currency forward contracts that are not designated as hedging transactions. Most of these exposures are hedged on a month-to-month basis. As of March 31, 2020 and December 31, 2019 , the total notional amounts of these foreign currency forward contracts were $0.8 billion and $1.2 billion , respectively. Gains and losses recognized in earnings for our derivative instruments not designated as hedging instruments were not material for the three months ended March 31, 2020 and 2019 . The fair values of derivatives included in the Condensed Consolidated Balance Sheets were as follows (in millions): Derivative assets Derivative liabilities March 31, 2020 Condensed Consolidated Balance Sheets locations Fair values Condensed Consolidated Fair values Derivatives designated as hedging instruments: Foreign currency contracts Other current assets/ Other assets $ 375 Accrued liabilities/ Other noncurrent liabilities $ 5 Cross-currency swap contracts Other current assets/ Other assets 10 Accrued liabilities/ Other noncurrent liabilities 657 Interest rate swap contracts Other current assets/ Other assets 89 Accrued liabilities/ Other noncurrent liabilities 23 Total derivatives designated as hedging instruments 474 685 Derivatives not designated as hedging instruments: Foreign currency contracts Other current assets — Accrued liabilities — Total derivatives not designated as hedging instruments — — Total derivatives $ 474 $ 685 Derivative assets Derivative liabilities December 31, 2019 Condensed Consolidated Balance Sheets locations Fair values Condensed Consolidated Fair values Derivatives designated as hedging instruments: Foreign currency contracts Other current assets/ Other assets $ 223 Accrued liabilities/ Other noncurrent liabilities $ 31 Cross-currency swap contracts Other current assets/ Other assets 66 Accrued liabilities/ Other noncurrent liabilities 315 Interest rate swap contracts Other current assets/ Other assets 259 Accrued liabilities/ Other noncurrent liabilities — Total derivatives designated as hedging instruments 548 346 Derivatives not designated as hedging instruments: Foreign currency contracts Other current assets 1 Accrued liabilities — Total derivatives not designated as hedging instruments 1 — Total derivatives $ 549 $ 346 Our derivative contracts that were in liability positions as of March 31, 2020 , 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 either to or from a counterparty under the contracts may be offset against other amounts due either to or from the same counterparty only if an event of default or termination, as defined, were to occur. The cash flow effects of our derivative contracts in the Condensed Consolidated Statements of Cash Flows are included in Net cash provided by operating activities, except for the settlement of notional amounts of cross-currency swaps, which are included in Net cash used in financing activities. |
Contingencies and commitments
Contingencies and commitments | 3 Months Ended |
Mar. 31, 2020 | |
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, government investigations and other matters that are complex in nature and have outcomes that are difficult to predict. See our Annual Report on Form 10-K for the year ended December 31, 2019, Part I, Item 1A. Risk Factors— Our business may be affected by litigation and government investigations. We describe our legal proceedings and other matters that are significant or that we believe could become significant in this footnote. We record accruals for loss contingencies to the extent that we conclude 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 involve various aspects of our business and a variety of claims, some of which present novel factual allegations and/or unique legal theories. In each of the matters described in this filing, or in Note 19, Contingencies and commitments, to the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2019, in which we could incur a liability, our opponents 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 we face often extend for several years. As a result, none of the matters described in this filing, or in Note 19, Contingencies and commitments, to the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2019, in which we could incur a liability, have progressed sufficiently through discovery and/or the 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 matters, an adverse determination in one or more of these matters 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: Abbreviated New Drug Application (ANDA) Patent Litigation KYPROLIS ® (carfilzomib) ANDA Patent Litigation Onyx Therapeutics, Inc. v. Cipla Limited, et al . On March 30, 2020, the U.S. District Court for the District of Delaware (the Delaware District Court) issued an order advising the parties in the litigation that, due to the recent and current challenges, the court does not anticipate issuing its post-trial opinion until approximately on or before May 8, 2020. Otezla ® (apremilast) ANDA Patent Litigation Amgen Inc. v. Sandoz Inc., et al. On February 14, 2020, the U.S. District Court for the District of New Jersey (the New Jersey District Court) granted the motion by Amgen and Celgene Corp. (Celgene) and issued an order substituting Amgen for Celgene as plaintiff in the consolidated action and all related actions, terminating Celgene as plaintiff in the consolidated action and all related actions, and amending the case caption in the consolidated action and all related actions to reflect Amgen as the sole plaintiff. On March 25, 2020, based on a joint request by Amgen and Unichem Laboratories, Ltd. (Unichem), the New Jersey District Court entered a consent judgment and injunction prohibiting the making, using, selling, offering to sell, or importing of Unichem’s apremilast product during the term of the U.S. Patent Nos. 6,962,940 (the ’940 Patent); 7,427,638 (the ’638 Patent); 7,659,302 (the ’302 Patent); 7,893,101 (the ’101 Patent); 8,455,536 (the ’536 Patent); 9,018,243 (the ’243 Patent); 9,724,330 (the ’330 Patent); and 10,092,541 (the ’541 Patent), unless authorized pursuant to a confidential settlement agreement. On April 3, 2020, based on a joint request by Amgen and Annora Pharma Private Ltd. and Hetero USA Inc. (collectively, Hetero), the New Jersey District Court entered a consent judgment and injunction prohibiting the making, using, selling, offering to sell, or importing of Hetero’s apremilast product during the term of the ’940 Patent; U.S. Patent No. 7,208,516; the ’638 Patent; the ’302 Patent; the ’101 Patent; the ’536 Patent; U.S. Patent No. 8,802,717; the ’243 Patent; the ’330 Patent; U.S. Patent No. 9,872,854 and the ’541 Patent, unless authorized pursuant to a confidential settlement agreement. Trial in the consolidated action is scheduled to commence in May 2021. Sensipar ® (cinacalcet) ANDA Patent Litigation Amgen Inc. v. Amneal Pharmaceuticals LLC, et al. (formerly, Amgen Inc. v. Aurobindo Pharma Ltd. et al.) Consolidated Case On February 13, 2020, Amgen petitioned the U.S. Court of Appeals for the Federal Circuit (the Federal Circuit Court) to rehear Amgen’s appeal of the judgment of noninfringement with respect to Piramal Healthcare UK Limited, and Amneal Pharmaceuticals LLC and Amneal Pharmaceuticals of New York, LLC (collectively, Amneal) petitioned the Federal Circuit Court for panel rehearing of the court’s opinion vacating and remanding the judgment of noninfringement with respect to Amneal. On April 15, 2020, the Federal Circuit Court denied each of Amgen’s and Amneal’s petitions. On April 22, 2020, the Federal Circuit Court issued a mandate returning the case to the Delaware District Court. ENBREL (etanercept) Patent Litigation Immunex Corporation, et al. v. Sandoz Inc., et al. On March 4, 2020, the Federal Circuit Court heard oral argument on the appeal by Sandoz Inc., Sandoz International GmbH and Sandoz GmbH from final judgment upholding the validity of U.S. Patent Nos. 8,063,182 and 8,163,522. Repatha ® (evolocumab) Patent Litigation Patent Disputes in the International Region A two-day hearing before the Technical Board of Appeal of the European Patent Office, which was scheduled to begin on March 24, 2020, has been rescheduled to begin on October 28, 2020. As previously disclosed, we are also involved in and expect future involvement in additional disputes regarding our proprotein convertase subtilisin/kexin type 9 (PCSK9) patents in other jurisdictions and regions, including matters filed against us and that we have filed in the United Kingdom, Germany, France and Japan. On April 24, 2020, the Supreme Court of Japan declined to hear Sanofi K.K.’s appeals making final the Japanese High Court’s decisions that PRALUENT ® infringes Amgen’s valid patent rights in Japan. NEUPOGEN ® (filgrastim)/Neulasta ® (pegfilgrastim) Patent Litigation Apotex PTAB Challenge On March 24, 2020, the Federal Circuit Court vacated the decision by the Patent Trial and Appeal Board (PTAB) of the U.S. Patent and Trademark Office and remanded the case to the PTAB for proceeding consistent with the Federal Circuit Court’s decision in Arthrex Inc. v. Smith & Nephew, Inc ., 941 F.3d 1320 (Fed. Cir. 2019). Amgen Inc., et al. v. Pfizer Inc. et al. On February 18, 2020, the Delaware District Court entered an amended scheduling order moving the trial on the infringement of our U.S. Patent No. 9,643,997 to May 17, 2021, to enable Amgen Inc. and its wholly owned subsidiary, Amgen Manufacturing, Limited (collectively Amgen), to seek additional discovery into the defenses of Pfizer Inc. (Pfizer) and Hospira Inc. (Hospira). On April 24, 2020, Amgen filed a separate lawsuit in the Delaware District Court against Hospira and Pfizer for infringement of U.S. Patent No. 10,577,392 (the ’392 Patent) and seeks, among other remedies, damages and injunctive relief to prohibit Hospira and Pfizer from infringing the ’392 Patent by the manufacture, import and sale of Pfizer’s NIVESTYM TM biosimilar filgrastim product, which was launched in the U.S. in October 2018. Amgen Inc., et al. v. Hospira Inc. et al. On March 4, 2020, Hospira and Pfizer filed a motion requesting the Delaware District Court to dismiss the complaint by Amgen Inc. and its wholly owned subsidiary, Amgen Manufacturing, Limited, alleging non-infringement of U.S. Patent No. 8,273,707. The motion has been fully briefed. Fresenius PTAB Challenge On March 30, 2020, Amgen filed its preliminary response to a petition to institute inter partes review before the PTAB to challenge the patentability of U.S. Patent No. 9,856,287 filed by Fresenius Kabi USA, LLC and Fresenius Kabi SwissBioSim GmbH, and the PTAB will have 3 months to render a decision on whether to institute trial proceedings. EPOGEN ® (epoetin alfa) Patent Litigation Amgen Inc., et al. v. Hospira, Inc. The Federal Circuit Court denied petition for rehearing en banc by Hospira and issued the mandate on March 23, 2020 affirming the final judgment of the Delaware District Court that Amgen’s U.S. Patent No. 5,856,298 is valid and infringed by Hospira, that Amgen’s U.S. Patent No. 5,756,349 is not infringed by Hospira, and awarding Amgen $70 million in damages for Hospira’s infringement. On April 17, 2020, Amgen acknowledged satisfaction of judgment upon receipt of $83 million in damages, interest and cost. Litigation relating to our Biosimilar Products KANJINTI ® (trastuzumab-anns) Patent Litigation Genentech, Inc. v. Amgen Inc. On March 6, 2020, the Federal Circuit Court affirmed the District Court’s denial of Genentech Inc.’s (Genentech) motion for a preliminary injunction. On March 9, 2020, the Delaware District Court entered a Markman order construing a term of U.S. Patent No. 8,574,869 (the ’869 Patent). On March 16, 2020, the Delaware District Court signed a joint stipulation and order vacating the April 20, 2020 trial date. On April 17, 2020, the Delaware District Court rescheduled the jury trial to begin on February 22, 2021. MVASI ® (bevacizumab-awwb) Patent Litigation Genentech, Inc. and City of Hope v. Amgen Inc. On February 19, 2020, Genentech filed its second amended complaint in the Delaware District Court, adding additional claims for legal and declaratory relief with respect to patents already in suit. On March 4, 2020, Amgen filed its second amended affirmative answer and counterclaims, adding affirmative defenses and counterclaims that the ’869 Patent is unenforceable for inequitable conduct and unclean hands. On March 9, 2020, the Delaware District Court entered a Markman order construing a term of the ’869 Patent. Genentech, Inc. and City of Hope v. Immunex Rhode Island Corp. and Amgen Inc. Argument before the Federal Circuit Court on Genentech’s appeal of the Delaware District Court’s denial of Genentech’s motions for injunctive relief has been scheduled for June 3, 2020. Breach of Contract Action Cipla Ltd. et al. v. Amgen Inc. On February 6, 2020, Amgen’s motion was transferred to the U.S. Magistrate Judge for the District of Delaware for a recommendation. A hearing on the motion was held on April 28, 2020. Novartis Pharma AG v. Amgen Inc. On February 18, 2020, Novartis Pharma AG filed in the U.S. District Court for the Southern District of New York its answer and affirmative defenses to Amgen’s second amended counterclaims. Antitrust Class Action Sensipar ® Antitrust Class Actions On February 6, 2020, the motions in the class action lawsuits against Amgen and various entities affiliated with Teva Pharmaceutical Industries Limited were transferred to the U.S. Magistrate Judge for the District of Delaware for a recommendation. A hearing on the motions was held on April 28, 2020. The multidistrict litigation panel certified its conditional transfer order on February 6, 2020 transferring the additional class action lawsuit brought in the U.S. District Court for the Southern District of Florida, captioned MSP Recovery Claims v. Amgen Inc., et al. , to the Delaware District Court. |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 and 2019 , 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, 2019 . |
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 U.S. generally accepted accounting principles (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 $8.5 billion and $8.4 billion as of March 31, 2020 and December 31, 2019 , respectively. |
Equity method investments | Equity method investments The equity method of accounting is used for equity investments that give us the ability to exert significant influence, but not control, over an investee based on such factors as our ownership percentage, voting and other shareholder rights, board of director representation and the existence of other collaborative or business relationships. The equity method of accounting requires us to allocate the difference between the fair value of securities acquired and our proportionate share of the carrying value of the underlying assets (the basis difference) to various items and amortize such differences over their useful lives. Our share of the investees’ earnings or losses and amortization of basis differences, if any, are recorded one quarter in arrears in Interest and other income, net, in the Condensed Consolidated Statements of Income. |
Other recent accounting pronouncements | Recent accounting pronouncements In June 2016, the Financial Accounting Standards Board (FASB) issued a new accounting standard that amends the guidance for measuring and recording credit losses on financial assets measured at amortized cost by replacing the incurred-loss model with an expected-loss model. Accordingly, these financial assets will be presented at the net amount expected to be collected. This new standard also requires that credit losses related to available-for-sale debt securities be recorded as an allowance through net income rather than reducing the carrying amount under the current, other-than-temporary-impairment model. We adopted this standard as of January 1, 2020, using a modified-retrospective approach. Adoption of the standard did not have a material impact on our condensed consolidated financial statements. |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue by product and by geographic area | Revenues were as follows (in millions): Three months ended March 31, 2020 2019 US ROW Total US ROW Total Enbrel ® (etanercept) $ 1,117 $ 36 $ 1,153 $ 1,106 $ 45 $ 1,151 Prolia ® (denosumab) 422 232 654 390 202 592 Neulasta ® (pegfilgrastim) 534 75 609 893 128 1,021 XGEVA ® (denosumab) 355 126 481 356 115 471 Otezla ® (apremilast) 377 102 479 — — — Aranesp ® (darbepoetin alfa) 175 247 422 182 232 414 KYPROLIS ® (carfilzomib) 187 93 280 154 91 245 Repatha ® (evolocumab) 124 105 229 83 58 141 Other products 988 599 1,587 827 424 1,251 Total product sales (1) $ 4,279 $ 1,615 5,894 $ 3,991 $ 1,295 5,286 Other revenues 267 271 Total revenues $ 6,161 $ 5,557 ____________ (1) Hedging gains and losses, which are included in product sales, were not material for the three months ended March 31, 2020 and 2019 |
Earnings per share (Tables)
Earnings per share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Computation for basic and diluted earnings per share | The computations for basic and diluted EPS were as follows (in millions, except per-share data): Three months ended 2020 2019 Income (Numerator): Net income for basic and diluted EPS $ 1,825 $ 1,992 Shares (Denominator): Weighted-average shares for basic EPS 590 622 Effect of dilutive securities 4 4 Weighted-average shares for diluted EPS 594 626 Basic EPS $ 3.09 $ 3.20 Diluted EPS $ 3.07 $ 3.18 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 fair values of interest-bearing securities, which are considered available-for-sale, by type of security were as follows (in millions): Types of securities as of March 31, 2020 Amortized cost Gross unrealized gains Gross unrealized losses Fair values U.S. Treasury notes $ 173 $ 3 $ — $ 176 U.S. Treasury bills 900 — — 900 Corporate debt securities: Financial 12 — — 12 Industrial 12 — — 12 Other — — — — Residential-mortgage-backed securities — — — — Money market mutual funds 5,762 — — 5,762 Other short-term interest-bearing securities 432 — — 432 Total interest-bearing securities $ 7,291 $ 3 $ — $ 7,294 Types of securities as of December 31, 2019 Amortized cost Gross unrealized gains Gross unrealized losses Fair values U.S. Treasury notes $ 359 $ 1 $ — $ 360 U.S. Treasury bills — — — — Corporate debt securities: Financial 1,108 13 — 1,121 Industrial 824 10 — 834 Other 195 3 — 198 Residential-mortgage-backed securities 181 1 — 182 Money market mutual funds 5,250 — — 5,250 Other short-term interest-bearing securities 289 — — 289 Total interest-bearing securities $ 8,206 $ 28 $ — $ 8,234 |
Fair values of available-for-sale investments by classification in the Consolidated Balance Sheets | The fair values of interest-bearing securities by location in the Condensed Consolidated Balance Sheets were as follows (in millions): Condensed Consolidated Balance Sheets locations March 31, December 31, Cash and cash equivalents $ 6,969 $ 5,360 Marketable securities 325 2,874 Total interest-bearing securities $ 7,294 $ 8,234 |
Fair values of available-for-sale interest-bearing security investments by contractual maturity | The fair values of interest-bearing securities by contractual maturity, except for residential-mortgage-backed securities that do not have a single maturity date, were as follows (in millions): Contractual maturities March 31, December 31, Maturing in one year or less $ 7,165 $ 5,629 Maturing after one year through three years 129 2,304 Maturing after three years through five years — 119 Residential mortgage-backed securities — 182 Total interest-bearing securities $ 7,294 $ 8,234 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following (in millions): March 31, December 31, Raw materials $ 446 $ 358 Work in process 2,192 2,227 Finished goods 1,044 999 Total inventories $ 3,682 $ 3,584 |
Goodwill and other intangible_2
Goodwill and other intangible assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | The change in the carrying amount of goodwill was as follows (in millions): Three months ended Beginning balance $ 14,703 Currency translation adjustment (20 ) Ending balance $ 14,683 |
Schedule of identifiable intangible assets | Other intangible assets consisted of the following (in millions): March 31, 2020 December 31, 2019 Gross carrying amounts Accumulated amortization Other intangible assets, net Gross carrying amounts Accumulated amortization Other intangible assets, net Finite-lived intangible assets: Developed-product-technology rights $ 25,549 $ (8,876 ) $ 16,673 $ 25,575 $ (8,322 ) $ 17,253 Licensing rights 3,746 (2,494 ) 1,252 3,761 (2,398 ) 1,363 Marketing-related rights 1,375 (979 ) 396 1,382 (965 ) 417 Research and development technology rights 1,269 (967 ) 302 1,273 (947 ) 326 Total finite-lived intangible assets 31,939 (13,316 ) 18,623 31,991 (12,632 ) 19,359 Indefinite-lived intangible assets: In-process research and development 30 — 30 54 — 54 Total other intangible assets $ 31,969 $ (13,316 ) $ 18,653 $ 32,045 $ (12,632 ) $ 19,413 |
Financing arrangements (Tables)
Financing arrangements (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Debt Disclosure [Abstract] | ||
Schedule of borrowings | Our borrowings consisted of the following (in millions): March 31, December 31, 4.50% notes due 2020 (4.50% 2020 Notes) $ — $ 300 2.125% notes due 2020 (2.125% 2020 Notes) 750 750 Floating Rate Notes due 2020 300 300 2.20% notes due 2020 (2.20% 2020 Notes) 700 700 3.45% notes due 2020 (3.45% 2020 Notes) — 900 4.10% notes due 2021 (4.10% 2021 Notes) — 1,000 1.85% notes due 2021 (1.85% 2021 Notes) — 750 3.875% notes due 2021 (3.875% 2021 Notes) 1,450 1,750 1.25% €1,250 million notes due 2022 (1.25% 2022 euro Notes) 1,379 1,402 2.70% notes due 2022 (2.70% 2022 Notes) 500 500 2.65% notes due 2022 (2.65% 2022 Notes) 1,500 1,500 3.625% notes due 2022 (3.625% 2022 Notes) 750 750 0.41% CHF700 million bonds due 2023 (0.41% 2023 Swiss franc Bonds) 728 725 2.25% notes due 2023 (2.25% 2023 Notes) 750 750 3.625% notes due 2024 (3.625% 2024 Notes) 1,400 1,400 1.90% notes due 2025 (1.90% 2025 Notes) 500 — 3.125% notes due 2025 (3.125% 2025 Notes) 1,000 1,000 2.00% €750 million notes due 2026 (2.00% 2026 euro Notes) 827 841 2.60% notes due 2026 (2.60% 2026 Notes) 1,250 1,250 5.50% £475 million notes due 2026 (5.50% 2026 pound sterling Notes) 590 630 2.20% notes due 2027 (2.20% 2027 Notes) 750 — 3.20% notes due 2027 (3.20% 2027 Notes) 1,000 1,000 4.00% £700 million notes due 2029 (4.00% 2029 pound sterling Notes) 869 928 2.45% notes due 2030 (2.45% 2030 Notes) 1,250 — 6.375% notes due 2037 (6.375% 2037 Notes) 552 552 6.90% notes due 2038 (6.90% 2038 Notes) 291 291 6.40% notes due 2039 (6.40% 2039 Notes) 466 466 3.15% notes due 2040 (3.15% 2040 Notes) 1,250 — 5.75% notes due 2040 (5.75% 2040 Notes) 412 412 4.95% notes due 2041 (4.95% 2041 Notes) 600 600 5.15% notes due 2041 (5.15% 2041 Notes) 974 974 5.65% notes due 2042 (5.65% 2042 Notes) 487 487 5.375% notes due 2043 (5.375% 2043 Notes) 261 261 4.40% notes due 2045 (4.40% 2045 Notes) 2,250 2,250 4.563% notes due 2048 (4.563% 2048 Notes) 1,415 1,415 3.375% notes due 2050 (3.375% 2050 Notes) 1,250 — 4.663% notes due 2051 (4.663% 2051 Notes) 3,541 3,541 Other notes due 2097 100 100 Unamortized bond discounts, premiums and issuance costs, net (892 ) (868 ) Fair value adjustments 648 296 Total carrying value of debt 31,848 29,903 Less current portion (1,840 ) (2,953 ) Total long-term debt $ 30,008 $ 26,950 | |
Schedule of interest rate swaps | The effective interest rates on notes for which we have entered into interest rate swap contracts and the related notional amounts of these contracts were as follows (dollar amounts in millions): March 31, 2020 December 31, 2019 Notes Notional amounts Effective interest rates Notional amounts Effective interest rates 3.45% 2020 Notes $ — LIBOR + 1.1% $ 900 LIBOR + 1.1% 4.10% 2021 Notes — LIBOR + 1.7% 1,000 LIBOR + 1.7% 3.875% 2021 Notes 1,450 LIBOR + 2.0% 1,750 LIBOR + 2.0% 3.625% 2022 Notes 750 LIBOR + 2.7% 750 LIBOR + 1.6% 3.625% 2024 Notes 1,400 LIBOR + 3.2% 1,400 LIBOR + 1.4% 3.125% 2025 Notes 1,000 LIBOR + 1.8% 1,000 LIBOR + 0.9% 2.60% 2026 Notes 1,250 LIBOR + 1.8% 1,250 LIBOR + 0.3% 4.663% 2051 Notes (1) 1,500 LIBOR + 2.6% 1,500 LIBOR + 0.0% Total notional amounts $ 7,350 $ 9,550 ____________ (1) Excludes an additional 1.5% of interest for the difference between the coupon rate paid to note holders and the fixed rate received under the interest rate swap contracts. |
Stockholders' equity (Tables)
Stockholders' equity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Summary of activity under our stock repurchase program | Activity under our stock repurchase program, on a trade date basis, was as follows (in millions): 2020 2019 Shares Dollars Shares Dollars First quarter 4.3 $ 933 15.9 $ 3,031 |
Components of accumulated other comprehensive income | The components of Accumulated other comprehensive income (loss) (AOCI) were as follows (in millions): Foreign currency translation Cash flow hedges Available-for-sale securities Other AOCI Balance as of December 31, 2019 $ (718 ) $ 175 $ 22 $ (7 ) $ (528 ) Foreign currency translation adjustments (52 ) — — — (52 ) Unrealized (losses) gains — (162 ) 8 — (154 ) Reclassification adjustments to income — 84 (33 ) — 51 Other — — — (2 ) (2 ) Income taxes — 17 6 — 23 Balance as of March 31, 2020 $ (770 ) $ 114 $ 3 $ (9 ) $ (662 ) |
Reclassifications out of accumulated other comprehensive income | Reclassifications out of AOCI and into earnings were as follows (in millions): Three months ended March 31, Components of AOCI 2020 2019 Condensed Consolidated Statements of Income locations Cash flow hedges: Foreign currency contract gains $ 49 $ 14 Product sales Cross-currency swap contract losses (133 ) (42 ) Interest and other income, net (84 ) (28 ) Income before income taxes 18 6 Provision for income taxes $ (66 ) $ (22 ) Net income Available-for-sale securities: Net realized gains (losses) $ 33 $ (4 ) Interest and other income, net (7 ) — Provision for income taxes $ 26 $ (4 ) Net income |
Fair value measurement (Tables)
Fair value measurement (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair value of each major class of financial assets and liabilities measured at fair value on a recurring basis | The fair values of each major class of the Company’s financial assets and liabilities measured at fair value on a recurring basis were as follows (in millions): Quoted prices in Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Fair value measurement as of March 31, 2020, using: Total Assets: Available-for-sale securities: U.S. Treasury notes $ 176 $ — $ — $ 176 U.S. Treasury bills 900 — — 900 Corporate debt securities: Financial — 12 — 12 Industrial — 12 — 12 Other — — — — Residential-mortgage-backed securities — — — — Money market mutual funds 5,762 — — 5,762 Other short-term interest-bearing securities — 432 — 432 Equity securities 220 — — 220 Derivatives: Foreign currency contracts — 375 — 375 Cross-currency swap contracts — 10 — 10 Interest rate swap contracts — 89 — 89 Total assets $ 7,058 $ 930 $ — $ 7,988 Liabilities: Derivatives: Foreign currency contracts $ — $ 5 $ — $ 5 Cross-currency swap contracts — 657 — 657 Interest rate swap contracts — 23 — 23 Contingent consideration obligations — — 60 60 Total liabilities $ — $ 685 $ 60 $ 745 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Fair value measurement as of December 31, 2019, using: Total Assets: Available-for-sale securities: U.S. Treasury notes $ 360 $ — $ — $ 360 U.S. Treasury bills — — — — Corporate debt securities: Financial — 1,121 — 1,121 Industrial — 834 — 834 Other — 198 — 198 Residential-mortgage-backed securities — 182 — 182 Money market mutual funds 5,250 — — 5,250 Other short-term interest-bearing securities — 289 — 289 Equity securities 303 — — 303 Derivatives: Foreign currency contracts — 224 — 224 Cross-currency swap contracts — 66 — 66 Interest rate swap contracts — 259 — 259 Total assets $ 5,913 $ 3,173 $ — $ 9,086 Liabilities: Derivatives: Foreign currency contracts $ — $ 31 $ — $ 31 Cross-currency swap contracts — 315 — 315 Interest rate swap contracts — — — — Contingent consideration obligations — — 61 61 Total liabilities $ — $ 346 $ 61 $ 407 |
Derivative instruments (Tables)
Derivative instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 as of March 31, 2020 , were as follows (notional amounts in millions): Foreign currency U.S. dollars Hedged notes Notional amounts Interest rates Notional amounts Interest rates 1.25% 2022 euro Notes € 1,250 1.3 % $ 1,388 3.2 % 0.41% 2023 Swiss franc Bonds CHF 700 0.4 % $ 704 3.4 % 2.00% 2026 euro Notes € 750 2.0 % $ 833 3.9 % 5.50% 2026 pound sterling Notes £ 475 5.5 % $ 747 6.0 % 4.00% 2029 pound sterling Notes £ 700 4.0 % $ 1,111 4.5 % |
Unrealized gain (loss) recognized in Other Comprehensive Income for our derivative instruments designated as cash flow hedges | The unrealized gains and losses recognized in AOCI for our derivative instruments designated as cash flow hedges were as follows (in millions): Three months ended Derivatives in cash flow hedging relationships 2020 2019 Foreign currency contracts $ 239 $ 85 Cross-currency swap contracts (401 ) (55 ) Total unrealized (losses) gains $ (162 ) $ 30 |
Derivatives in fair value hedging relationships | The hedged liabilities and related cumulative-basis adjustments for fair value hedges of those liabilities were recorded in the Condensed Consolidated Balance Sheets as follows (in millions): Carrying amounts of hedged liabilities (1) Cumulative amounts of fair value hedging adjustments related to the carrying amounts of the hedged liabilities (2) Condensed Consolidated Balance Sheets locations March 31, 2020 December 31, 2019 March 31, 2020 December 31, 2019 Current portion of long-term debt $ 90 $ 903 $ 90 $ 4 Long-term debt $ 7,784 $ 8,814 $ 558 $ 292 ____________ (1) Current portion of long-term debt includes $90 million of carrying value with discontinued hedging relationships as of March 31, 2020 . Long-term debt includes $592 million and $136 million of carrying value with discontinued hedging relationships as of March 31, 2020 and December 31, 2019 , respectively. (2) Current portion of long-term debt includes $90 million of hedging adjustments on discontinued hedging relationships as of March 31, 2020 . Long-term debt includes $492 million and $36 million of hedging adjustments on discontinued hedging relationships as of March 31, 2020 and December 31, 2019 , respectively. |
Summary of amounts of income and expense line items | The following tables summarize the amounts recorded in income and expense line items and the effects thereon from fair value and cash flow hedging, including discontinued hedging relationships (in millions): Three months ended March 31, 2020 Product sales Interest and other income, net Interest (expense), net Total amounts recorded in income and (expense) line items presented in the Condensed Consolidated Statements of Income $ 5,894 $ 11 $ (346 ) The effects of cash flow and fair value hedging: Gains (losses) on cash flow hedging relationships reclassified out of AOCI: Foreign currency contracts $ 49 $ — $ — Cross-currency swap contracts $ — $ (133 ) $ — Gains (losses) on fair value hedging relationships—interest rate swap agreements: Hedged items (1) $ — $ — $ 210 Derivatives designated as hedging instruments $ — $ — $ (190 ) Three months ended March 31, 2019 Product sales Interest and other income, net Interest (expense), net Total amounts recorded in income and (expense) line items presented in the Condensed Consolidated Statements of Income $ 5,286 $ 185 $ (343 ) The effects of cash flow and fair value hedging: Gains (losses) on cash flow hedging relationships reclassified out of AOCI: Foreign currency contracts $ 14 $ — $ — Cross-currency swap contracts $ — $ (42 ) $ — (Losses) gains on fair value hedging relationships—interest rate swap agreements: Hedged items (1) $ — $ — $ (130 ) Derivatives designated as hedging instruments $ — $ — $ 133 __________ (1) Gains (losses) on hedged items do not completely offset gains (losses) on the related designated hedging instruments due to amortization of the cumulative amounts of fair value hedging adjustments included in the carrying amount of the hedged debt for discontinued hedging relationships and the recognition of gains on terminated hedges where the corresponding hedged item was paid down in the period. |
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 March 31, 2020 Condensed Consolidated Balance Sheets locations Fair values Condensed Consolidated Fair values Derivatives designated as hedging instruments: Foreign currency contracts Other current assets/ Other assets $ 375 Accrued liabilities/ Other noncurrent liabilities $ 5 Cross-currency swap contracts Other current assets/ Other assets 10 Accrued liabilities/ Other noncurrent liabilities 657 Interest rate swap contracts Other current assets/ Other assets 89 Accrued liabilities/ Other noncurrent liabilities 23 Total derivatives designated as hedging instruments 474 685 Derivatives not designated as hedging instruments: Foreign currency contracts Other current assets — Accrued liabilities — Total derivatives not designated as hedging instruments — — Total derivatives $ 474 $ 685 Derivative assets Derivative liabilities December 31, 2019 Condensed Consolidated Balance Sheets locations Fair values Condensed Consolidated Fair values Derivatives designated as hedging instruments: Foreign currency contracts Other current assets/ Other assets $ 223 Accrued liabilities/ Other noncurrent liabilities $ 31 Cross-currency swap contracts Other current assets/ Other assets 66 Accrued liabilities/ Other noncurrent liabilities 315 Interest rate swap contracts Other current assets/ Other assets 259 Accrued liabilities/ Other noncurrent liabilities — Total derivatives designated as hedging instruments 548 346 Derivatives not designated as hedging instruments: Foreign currency contracts Other current assets 1 Accrued liabilities — Total derivatives not designated as hedging instruments 1 — Total derivatives $ 549 $ 346 |
Summary of significant accoun_3
Summary of significant accounting policies (Details) $ in Billions | 3 Months Ended | |
Mar. 31, 2020USD ($)segment | Dec. 31, 2019USD ($) | |
Accounting Policies [Abstract] | ||
Number of operating segments | segment | 1 | |
Accumulated depreciation and amortization on property, plant and equipment | $ | $ 8.5 | $ 8.4 |
Revenues (Details)
Revenues (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2020USD ($)segment | Mar. 31, 2019USD ($) | |
Revenue from Contract with Customer [Abstract] | ||
Number of operating segments | segment | 1 | |
Revenue from External Customer [Line Items] | ||
Total revenues | $ 6,161 | $ 5,557 |
Product sales [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 5,894 | 5,286 |
Product sales [Member] | US [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 4,279 | 3,991 |
Product sales [Member] | ROW [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 1,615 | 1,295 |
Enbrel® (etanercept) [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 1,153 | 1,151 |
Enbrel® (etanercept) [Member] | US [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 1,117 | 1,106 |
Enbrel® (etanercept) [Member] | ROW [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 36 | 45 |
Prolia® (denosumab) [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 654 | 592 |
Prolia® (denosumab) [Member] | US [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 422 | 390 |
Prolia® (denosumab) [Member] | ROW [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 232 | 202 |
Neulasta® (pegfilgrastim) [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 609 | 1,021 |
Neulasta® (pegfilgrastim) [Member] | US [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 534 | 893 |
Neulasta® (pegfilgrastim) [Member] | ROW [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 75 | 128 |
XGEVA® (denosumab) [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 481 | 471 |
XGEVA® (denosumab) [Member] | US [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 355 | 356 |
XGEVA® (denosumab) [Member] | ROW [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 126 | 115 |
Otezla (apremilast) [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 479 | 0 |
Otezla (apremilast) [Member] | US [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 377 | 0 |
Otezla (apremilast) [Member] | ROW [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 102 | 0 |
Aranesp® (darbepoetin alfa) [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 422 | 414 |
Aranesp® (darbepoetin alfa) [Member] | US [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 175 | 182 |
Aranesp® (darbepoetin alfa) [Member] | ROW [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 247 | 232 |
KYPROLIS® (carfilzomib) [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 280 | 245 |
KYPROLIS® (carfilzomib) [Member] | US [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 187 | 154 |
KYPROLIS® (carfilzomib) [Member] | ROW [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 93 | 91 |
Repatha (evolocumab) [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 229 | 141 |
Repatha (evolocumab) [Member] | US [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 124 | 83 |
Repatha (evolocumab) [Member] | ROW [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 105 | 58 |
Other products [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 1,587 | 1,251 |
Other products [Member] | US [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 988 | 827 |
Other products [Member] | ROW [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 599 | 424 |
Other revenues [Member] | ||
Revenue from External Customer [Line Items] | ||
Total revenues | $ 267 | $ 271 |
Income taxes (Details)
Income taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 9.70% | 13.90% |
Increase in unrecognized tax benefits resulting from tax positions taken during the current period | $ 50 |
Earnings per share (Details)
Earnings per share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income (Numerator): | ||
Net income for basic and diluted EPS | $ 1,825 | $ 1,992 |
Shares (Denominator): | ||
Weighted-average shares for basic EPS (in shares) | 590 | 622 |
Effect of dilutive securities (in shares) | 4 | 4 |
Weighted-average shares for diluted EPS (in shares) | 594 | 626 |
Basic EPS (in usd per share) | $ 3.09 | $ 3.20 |
Diluted EPS (in usd per share) | $ 3.07 | $ 3.18 |
Collaborations (Details)
Collaborations (Details) - Collaborative arrangement with BeiGene, Ltd. [Member] - USD ($) | Jan. 02, 2020 | Mar. 31, 2020 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Global research and development costs (up to) | $ 1,250,000,000 | |
Research and development expense | $ 57,000,000 |
Investments (Details)
Investments (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | $ 7,291,000,000 | $ 8,206,000,000 |
Gross unrealized gains | 3,000,000 | 28,000,000 |
Gross unrealized losses | 0 | 0 |
Fair values | 7,294,000,000 | 8,234,000,000 |
U.S. Treasury notes [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 173,000,000 | 359,000,000 |
Gross unrealized gains | 3,000,000 | 1,000,000 |
Gross unrealized losses | 0 | 0 |
Fair values | 176,000,000 | 360,000,000 |
U.S. Treasury bills [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 900,000,000 | 0 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Fair values | 900,000,000 | 0 |
Corporate debt securities - Financial [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 12,000,000 | 1,108,000,000 |
Gross unrealized gains | 0 | 13,000,000 |
Gross unrealized losses | 0 | 0 |
Fair values | 12,000,000 | 1,121,000,000 |
Corporate debt securities - Industrial [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 12,000,000 | 824,000,000 |
Gross unrealized gains | 0 | 10,000,000 |
Gross unrealized losses | 0 | 0 |
Fair values | 12,000,000 | 834,000,000 |
Corporate debt securities - Other [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 0 | 195,000,000 |
Gross unrealized gains | 0 | 3,000,000 |
Gross unrealized losses | 0 | 0 |
Fair values | 0 | 198,000,000 |
Residential mortgage-backed securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 0 | 181,000,000 |
Gross unrealized gains | 0 | 1,000,000 |
Gross unrealized losses | 0 | 0 |
Fair values | 0 | 182,000,000 |
Money market mutual funds [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 5,762,000,000 | 5,250,000,000 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Fair values | 5,762,000,000 | 5,250,000,000 |
Other short-term interest-bearing securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 432,000,000 | 289,000,000 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Fair values | $ 432,000,000 | $ 289,000,000 |
Investments (Fair Values by Cla
Investments (Fair Values by Classification) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Fair values of available-for-sale investments by classification in the Consolidated Balance Sheets | ||
Cash and cash equivalents | $ 7,687 | $ 6,037 |
Marketable securities | 325 | 2,874 |
Total interest-bearing securities | 7,294 | 8,234 |
Available-for-sale investments [Member] | ||
Fair values of available-for-sale investments by classification in the Consolidated Balance Sheets | ||
Cash and cash equivalents | 6,969 | 5,360 |
Marketable securities | 325 | 2,874 |
Total interest-bearing securities | $ 7,294 | $ 8,234 |
Investments (Available-for-sale
Investments (Available-for-sale Investments) (Details Textual) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |||
Cash and cash equivalents | $ 718 | $ 677 | |
Total realized gains | 37 | $ 1 | |
Total realized losses | $ 4 | $ 5 |
Investments (Fair Values by Con
Investments (Fair Values by Contractual Maturity) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Investments, Debt and Equity Securities [Abstract] | ||
Maturing in one year or less | $ 7,165 | $ 5,629 |
Maturing after one year through three years | 129 | 2,304 |
Maturing after three years through five years | 0 | 119 |
Residential mortgage-backed securities | 0 | 182 |
Total interest-bearing securities | $ 7,294 | $ 8,234 |
Investments (Equity Securities)
Investments (Equity Securities) (Details Textual) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Investments, Debt and Equity Securities [Abstract] | ||
Equity securities | $ 220 | $ 303 |
Equity securities without readily determinable fair value | $ 183 | $ 176 |
Investments Investments (Limite
Investments Investments (Limited Partnership Investments) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Jan. 02, 2020 | Dec. 31, 2019 | |
Limited Partnership [Member] | Fair Value Measured at Net Asset Value Per Share [Member] | |||
Net Investment Income [Line Items] | |||
Investments | $ 331 | $ 320 | |
BeiGene [Member] | |||
Net Investment Income [Line Items] | |||
Carrying value of equity method investment | $ 2,600 | ||
Equity Method Investment, Aggregate Cost | $ 2,800 | ||
Ownership percentage | 20.50% | 20.50% | |
Equity Method Investments,Quoted Market Price | $ 2,600 | ||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity | $ 2,400 | ||
Equity Method Investments, Fair Value Disclosure | $ 2,000 | ||
Minimum [Member] | BeiGene [Member] | |||
Net Investment Income [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 8 years | ||
Maximum [Member] | BeiGene [Member] | |||
Net Investment Income [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 15 years |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 446 | $ 358 |
Work in process | 2,192 | 2,227 |
Finished goods | 1,044 | 999 |
Total inventories | $ 3,682 | $ 3,584 |
Goodwill and other intangible_3
Goodwill and other intangible assets (Goodwill Roll Forward) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 14,703 |
Currency translation adjustment | (20) |
Ending balance | $ 14,683 |
Goodwill and other intangible_4
Goodwill and other intangible assets (Identifiable Intangible Assets) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amounts | $ 31,939 | $ 31,991 |
Accumulated amortization | (13,316) | (12,632) |
Other intangible assets, net | 18,623 | 19,359 |
Gross carrying amount | 31,969 | 32,045 |
Accumulated amortization | (13,316) | (12,632) |
Intangible assets, net | 18,653 | 19,413 |
In-process Research and Development [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 30 | 54 |
Developed-Product-Technology Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amounts | 25,549 | 25,575 |
Accumulated amortization | (8,876) | (8,322) |
Other intangible assets, net | 16,673 | 17,253 |
Licensing Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amounts | 3,746 | 3,761 |
Accumulated amortization | (2,494) | (2,398) |
Other intangible assets, net | 1,252 | 1,363 |
Marketing-Related Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amounts | 1,375 | 1,382 |
Accumulated amortization | (979) | (965) |
Other intangible assets, net | 396 | 417 |
Research and Development Technology Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amounts | 1,269 | 1,273 |
Accumulated amortization | (967) | (947) |
Other intangible assets, net | $ 302 | $ 326 |
Goodwill and other intangible_5
Goodwill and other intangible assets (Details Textual) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization charges associated with finite-lived intangible assets | $ 709 | $ 315 |
Total estimated amortization of finite-lived intangible assets for the six months ending December 31, 2019 | 2,100 | |
Total estimated amortization of finite-lived intangible assets for 2020 | 2,600 | |
Total estimated amortization of finite-lived intangible assets for 2021 | 2,500 | |
Total estimated amortization of finite-lived intangible assets for 2022 | 2,400 | |
Total estimated amortization of finite-lived intangible assets for 2023 | 2,400 | |
Total estimated amortization of finite-lived intangible assets for 2024 | $ 2,200 |
Financing arrangements (Princip
Financing arrangements (Principal Amounts and Carrying Value of Long-term Borrowings) (Details) $ in Millions | 3 Months Ended | ||||
Mar. 31, 2020GBP (£) | Mar. 31, 2020USD ($) | Mar. 31, 2020CHF (SFr) | Mar. 31, 2020EUR (€) | Dec. 31, 2019USD ($) | |
Debt Instrument [Line Items] | |||||
Unamortized bond discounts, premiums and issuance costs, net | $ (892) | $ (868) | |||
Fair value adjustments | 648 | 296 | |||
Total carrying value of debt | 31,848 | 29,903 | |||
Less current portion | (1,840) | (2,953) | |||
Total long-term debt | 30,008 | 26,950 | |||
Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 5,000 | ||||
Notes [Member] | 4.50% notes due 2020 (4.50% 2020 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 4.50% | 4.50% | 4.50% | 4.50% | |
Long-term debt, gross | 300 | ||||
Percentage of Principal Amount of Notes that may be Paid Upon Occurrence of Change in Control Triggering Event | 101.00% | ||||
Notes [Member] | 2.125% notes due 2020 (2.125% 2020 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 2.125% | 2.125% | 2.125% | 2.125% | |
Long-term debt, gross | $ 750 | 750 | |||
Percentage of Principal Amount of Notes that may be Paid Upon Occurrence of Change in Control Triggering Event | 101.00% | ||||
Notes [Member] | Floating Rate Notes Due 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 300 | 300 | |||
Percentage of Principal Amount of Notes that may be Paid Upon Occurrence of Change in Control Triggering Event | 101.00% | ||||
Notes [Member] | 2.20% notes due 2020 (2.20% 2020 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 2.20% | 2.20% | 2.20% | 2.20% | |
Long-term debt, gross | $ 700 | 700 | |||
Percentage of Principal Amount of Notes that may be Paid Upon Occurrence of Change in Control Triggering Event | 101.00% | ||||
Notes [Member] | 3.45% notes due 2020 (3.45% 2020 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 3.45% | 3.45% | 3.45% | 3.45% | |
Long-term debt, gross | 900 | ||||
Percentage of Principal Amount of Notes that may be Paid Upon Occurrence of Change in Control Triggering Event | 101.00% | ||||
Notes [Member] | 4.10% notes due 2021 (4.10% 2021 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 4.10% | 4.10% | 4.10% | 4.10% | |
Long-term debt, gross | 1,000 | ||||
Percentage of Principal Amount of Notes that may be Paid Upon Occurrence of Change in Control Triggering Event | 101.00% | ||||
Notes [Member] | 1.85% notes due 2021 (1.85% 2021 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 1.85% | 1.85% | 1.85% | 1.85% | |
Long-term debt, gross | $ 0 | 750 | |||
Percentage of Principal Amount of Notes that may be Paid Upon Occurrence of Change in Control Triggering Event | 101.00% | ||||
Notes [Member] | 3.875% notes due 2021 (3.875% 2021 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 3.875% | 3.875% | 3.875% | 3.875% | |
Long-term debt, gross | $ 1,450 | 1,750 | |||
Percentage of Principal Amount of Notes that may be Paid Upon Occurrence of Change in Control Triggering Event | 101.00% | ||||
Notes [Member] | 1.25% €1,250 million notes due 2022 (1.25% 2022 euro Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 1.25% | 1.25% | 1.25% | 1.25% | |
Long-term debt, gross | $ 1,379 | 1,402 | |||
Face amount | € | € 1,250,000,000 | ||||
Percentage of Principal Amount of Notes that may be Paid Upon Occurrence of Change in Control Triggering Event | 101.00% | ||||
Notes [Member] | 2.70% notes due 2022 (2.70% 2022 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 2.70% | 2.70% | 2.70% | 2.70% | |
Long-term debt, gross | $ 500 | 500 | |||
Percentage of Principal Amount of Notes that may be Paid Upon Occurrence of Change in Control Triggering Event | 101.00% | ||||
Notes [Member] | 2.65% notes due 2022 (2.65% 2022 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 2.65% | 2.65% | 2.65% | 2.65% | |
Long-term debt, gross | $ 1,500 | 1,500 | |||
Percentage of Principal Amount of Notes that may be Paid Upon Occurrence of Change in Control Triggering Event | 101.00% | ||||
Notes [Member] | 3.625% notes due 2022 (3.625% 2022 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 3.625% | 3.625% | 3.625% | 3.625% | |
Long-term debt, gross | $ 750 | 750 | |||
Percentage of Principal Amount of Notes that may be Paid Upon Occurrence of Change in Control Triggering Event | 101.00% | ||||
Notes [Member] | 0.41% CHF700 million bonds due 2023 (0.41% 2023 Swiss franc Bonds) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 0.41% | 0.41% | 0.41% | 0.41% | |
Long-term debt, gross | $ 728 | 725 | |||
Face amount | SFr | SFr 700,000,000 | ||||
Percentage of Principal Amount of Notes that may be Paid Upon Occurrence of Change in Control Triggering Event | 101.00% | ||||
Notes [Member] | 2.25% notes due 2023 (2.25% 2023 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 2.25% | 2.25% | 2.25% | 2.25% | |
Long-term debt, gross | $ 750 | 750 | |||
Percentage of Principal Amount of Notes that may be Paid Upon Occurrence of Change in Control Triggering Event | 101.00% | ||||
Notes [Member] | 3.625% notes due 2024 (3.625% 2024 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 3.625% | 3.625% | 3.625% | 3.625% | |
Long-term debt, gross | $ 1,400 | 1,400 | |||
Percentage of Principal Amount of Notes that may be Paid Upon Occurrence of Change in Control Triggering Event | 101.00% | ||||
Notes [Member] | 1.90% notes due 2025 (1.90% 2025 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 1.90% | 1.90% | 1.90% | 1.90% | |
Long-term debt, gross | $ 500 | ||||
Percentage of Principal Amount of Notes that may be Paid Upon Occurrence of Change in Control Triggering Event | 101.00% | ||||
Notes [Member] | 3.125% notes due 2025 (3.125% 2025 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 3.125% | 3.125% | 3.125% | 3.125% | |
Long-term debt, gross | $ 1,000 | 1,000 | |||
Percentage of Principal Amount of Notes that may be Paid Upon Occurrence of Change in Control Triggering Event | 101.00% | ||||
Notes [Member] | 2.00% €750 million notes due 2026 (2.00% 2026 euro Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 2.00% | 2.00% | 2.00% | 2.00% | |
Long-term debt, gross | $ 827 | 841 | |||
Face amount | € | € 750,000,000 | ||||
Percentage of Principal Amount of Notes that may be Paid Upon Occurrence of Change in Control Triggering Event | 101.00% | ||||
Notes [Member] | 2.60% notes due 2026 (2.60% 2026 notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 2.60% | 2.60% | 2.60% | 2.60% | |
Long-term debt, gross | $ 1,250 | 1,250 | |||
Percentage of Principal Amount of Notes that may be Paid Upon Occurrence of Change in Control Triggering Event | 101.00% | ||||
Notes [Member] | 5.50% £475 million notes due 2026 (5.50% 2026 pound sterling Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 5.50% | 5.50% | 5.50% | 5.50% | |
Long-term debt, gross | $ 590 | 630 | |||
Face amount | £ | £ 475,000,000 | ||||
Percentage of Principal Amount of Notes that may be Paid Upon Occurrence of Change in Control Triggering Event | 101.00% | ||||
Notes [Member] | 2.20% notes due 2027 (2.20% 2027 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 2.20% | 2.20% | 2.20% | 2.20% | |
Long-term debt, gross | $ 750 | ||||
Percentage of Principal Amount of Notes that may be Paid Upon Occurrence of Change in Control Triggering Event | 101.00% | ||||
Notes [Member] | 3.20% notes due 2027 (3.20% 2027 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 3.20% | 3.20% | 3.20% | 3.20% | |
Long-term debt, gross | $ 1,000 | 1,000 | |||
Percentage of Principal Amount of Notes that may be Paid Upon Occurrence of Change in Control Triggering Event | 101.00% | ||||
Notes [Member] | 4.00% £700 million notes due 2029 (4.00% 2029 pound sterling Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 4.00% | 4.00% | 4.00% | 4.00% | |
Long-term debt, gross | $ 869 | 928 | |||
Face amount | £ | £ 700,000,000 | ||||
Percentage of Principal Amount of Notes that may be Paid Upon Occurrence of Change in Control Triggering Event | 101.00% | ||||
Notes [Member] | 2.45% notes due 2030 (2.45% 2030 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 2.45% | 2.45% | 2.45% | 2.45% | |
Long-term debt, gross | $ 1,250 | ||||
Percentage of Principal Amount of Notes that may be Paid Upon Occurrence of Change in Control Triggering Event | 101.00% | ||||
Notes [Member] | 6.375% notes due 2037 (6.375% 2037 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 6.375% | 6.375% | 6.375% | 6.375% | |
Long-term debt, gross | $ 552 | 552 | |||
Percentage of Principal Amount of Notes that may be Paid Upon Occurrence of Change in Control Triggering Event | 101.00% | ||||
Notes [Member] | 6.90% notes due 2038 (6.90% 2038 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 6.90% | 6.90% | 6.90% | 6.90% | |
Long-term debt, gross | $ 291 | 291 | |||
Percentage of Principal Amount of Notes that may be Paid Upon Occurrence of Change in Control Triggering Event | 101.00% | ||||
Notes [Member] | 6.40% notes due 2039 (6.40% 2039 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 6.40% | 6.40% | 6.40% | 6.40% | |
Long-term debt, gross | $ 466 | 466 | |||
Percentage of Principal Amount of Notes that may be Paid Upon Occurrence of Change in Control Triggering Event | 101.00% | ||||
Notes [Member] | 3.15% notes due 2040 (3.15% 2040 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 3.15% | 3.15% | 3.15% | 3.15% | |
Long-term debt, gross | $ 1,250 | ||||
Percentage of Principal Amount of Notes that may be Paid Upon Occurrence of Change in Control Triggering Event | 101.00% | ||||
Notes [Member] | 5.75% notes due 2040 (5.75% 2040 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 5.75% | 5.75% | 5.75% | 5.75% | |
Long-term debt, gross | $ 412 | 412 | |||
Percentage of Principal Amount of Notes that may be Paid Upon Occurrence of Change in Control Triggering Event | 101.00% | ||||
Notes [Member] | 4.95% notes due 2041 (4.95% 2041 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 4.95% | 4.95% | 4.95% | 4.95% | |
Long-term debt, gross | $ 600 | 600 | |||
Percentage of Principal Amount of Notes that may be Paid Upon Occurrence of Change in Control Triggering Event | 101.00% | ||||
Notes [Member] | 5.15% notes due 2041 (5.15% 2041 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 5.15% | 5.15% | 5.15% | 5.15% | |
Long-term debt, gross | $ 974 | 974 | |||
Percentage of Principal Amount of Notes that may be Paid Upon Occurrence of Change in Control Triggering Event | 101.00% | ||||
Notes [Member] | 5.65% notes due 2042 (5.65% 2042 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 5.65% | 5.65% | 5.65% | 5.65% | |
Long-term debt, gross | $ 487 | 487 | |||
Percentage of Principal Amount of Notes that may be Paid Upon Occurrence of Change in Control Triggering Event | 101.00% | ||||
Notes [Member] | 5.375% notes due 2043 (5.375% 2043 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 5.375% | 5.375% | 5.375% | 5.375% | |
Long-term debt, gross | $ 261 | 261 | |||
Percentage of Principal Amount of Notes that may be Paid Upon Occurrence of Change in Control Triggering Event | 101.00% | ||||
Notes [Member] | 4.40% notes due 2045 (4.40% 2045 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 4.40% | 4.40% | 4.40% | 4.40% | |
Long-term debt, gross | $ 2,250 | 2,250 | |||
Percentage of Principal Amount of Notes that may be Paid Upon Occurrence of Change in Control Triggering Event | 101.00% | ||||
Notes [Member] | 4.563% notes due 2048 (4.563% 2048 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 4.563% | 4.563% | 4.563% | 4.563% | |
Long-term debt, gross | $ 1,415 | 1,415 | |||
Percentage of Principal Amount of Notes that may be Paid Upon Occurrence of Change in Control Triggering Event | 101.00% | ||||
Notes [Member] | 3.375% notes due 2050 (3.375% 2050 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 3.375% | 3.375% | 3.375% | 3.375% | |
Long-term debt, gross | $ 1,250 | ||||
Percentage of Principal Amount of Notes that may be Paid Upon Occurrence of Change in Control Triggering Event | 101.00% | ||||
Notes [Member] | 4.663% notes due 2051 (4.663% 2051 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 4.663% | 4.663% | 4.663% | 4.663% | |
Long-term debt, gross | $ 3,541 | 3,541 | |||
Percentage of Principal Amount of Notes that may be Paid Upon Occurrence of Change in Control Triggering Event | 101.00% | ||||
Notes [Member] | Other notes due 2097 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 100 | $ 100 |
Financing arrangements (Details
Financing arrangements (Details Textual) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Debt Instrument [Line Items] | ||
Repayments of Long-term Debt | $ 3,250 | $ 1,000 |
Notes [Member] | ||
Debt Instrument [Line Items] | ||
Face amount | $ 5,000 | |
Notes [Member] | 4.563% notes due 2048 (4.563% 2048 Notes) [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 4.563% | |
Effective interest rate | 6.30% | |
Notes [Member] | 4.663% notes due 2051 (4.663% 2051 Notes) [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 4.663% | |
Effective interest rate | 5.60% | |
Notes [Member] | Interest Expense [Member] | ||
Debt Instrument [Line Items] | ||
MakeWholePayments | $ 50 | |
Notes [Member] | 1.90% notes due 2025 (1.90% 2025 Notes) [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 1.90% | |
Notes [Member] | 2.20% notes due 2027 (2.20% 2027 Notes) [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 2.20% | |
Notes [Member] | 2.45% notes due 2030 (2.45% 2030 Notes) [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 2.45% | |
Notes [Member] | 3.15% notes due 2040 (3.15% 2040 Notes) [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 3.15% | |
Notes [Member] | 3.375% notes due 2050 (3.375% 2050 Notes) [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 3.375% | |
Notes [Member] | 3.45% notes due 2020 (3.45% 2020 Notes) [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 3.45% | |
Notes [Member] | 4.10% notes due 2021 (4.10% 2021 Notes) [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 4.10% | |
Notes [Member] | 1.85% notes due 2021 (1.85% 2021 Notes) [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 1.85% | |
Notes [Member] | 3.875% notes due 2021 (3.875% 2021 Notes) [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 3.875% | |
Repayments of Long-term Debt | $ 300 | |
Notes [Member] | 4.50% notes due 2020 (4.50% 2020 Notes) [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 4.50% | |
Minimum [Member] | Debt Securities Payable [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Redemption Period without Payment of Make Whole Amount | 1 month | |
Maximum [Member] | Debt Securities Payable [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Redemption Period without Payment of Make Whole Amount | 6 months |
Financing arrangements (Schedul
Financing arrangements (Schedule Interest Rate Swaps) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
4.663% notes due 2051 (4.663% 2051 Notes) [Member] | ||
Debt Instrument [Line Items] | ||
Rate difference in an interest rate swap relationship | 1.50% | |
Notes Payable, Other Payables [Member] | ||
Debt Instrument [Line Items] | ||
Notional amounts | $ 7,350 | $ 9,550 |
Notes Payable, Other Payables [Member] | 3.45% notes due 2020 (3.45% 2020 Notes) [Member] | ||
Debt Instrument [Line Items] | ||
Notional amounts | $ 0 | $ 900 |
Interest rate, stated percentage | 3.45% | |
Notes Payable, Other Payables [Member] | 3.45% notes due 2020 (3.45% 2020 Notes) [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument [Line Items] | ||
Derivative, Basis Spread on Variable Rate | 1.10% | 1.10% |
Notes Payable, Other Payables [Member] | 4.10% notes due 2021 (4.10% 2021 Notes) [Member] | ||
Debt Instrument [Line Items] | ||
Notional amounts | $ 0 | $ 1,000 |
Interest rate, stated percentage | 4.10% | |
Notes Payable, Other Payables [Member] | 4.10% notes due 2021 (4.10% 2021 Notes) [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument [Line Items] | ||
Derivative, Basis Spread on Variable Rate | 1.70% | 1.70% |
Notes Payable, Other Payables [Member] | 3.875% notes due 2021 (3.875% 2021 Notes) [Member] | ||
Debt Instrument [Line Items] | ||
Notional amounts | $ 1,450 | $ 1,750 |
Interest rate, stated percentage | 3.875% | |
Notes Payable, Other Payables [Member] | 3.875% notes due 2021 (3.875% 2021 Notes) [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument [Line Items] | ||
Derivative, Basis Spread on Variable Rate | 2.00% | 2.00% |
Notes Payable, Other Payables [Member] | 3.625% notes due 2022 (3.625% 2022 Notes) [Member] | ||
Debt Instrument [Line Items] | ||
Notional amounts | $ 750 | $ 750 |
Interest rate, stated percentage | 3.625% | |
Notes Payable, Other Payables [Member] | 3.625% notes due 2022 (3.625% 2022 Notes) [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument [Line Items] | ||
Derivative, Basis Spread on Variable Rate | 2.70% | 1.60% |
Notes Payable, Other Payables [Member] | 3.625% notes due 2024 (3.625% 2024 Notes) [Member] | ||
Debt Instrument [Line Items] | ||
Notional amounts | $ 1,400 | $ 1,400 |
Interest rate, stated percentage | 3.625% | |
Notes Payable, Other Payables [Member] | 3.625% notes due 2024 (3.625% 2024 Notes) [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument [Line Items] | ||
Derivative, Basis Spread on Variable Rate | 3.20% | 1.40% |
Notes Payable, Other Payables [Member] | 3.125% notes due 2025 (3.125% 2025 Notes) [Member] | ||
Debt Instrument [Line Items] | ||
Notional amounts | $ 1,000 | $ 1,000 |
Interest rate, stated percentage | 3.125% | |
Notes Payable, Other Payables [Member] | 3.125% notes due 2025 (3.125% 2025 Notes) [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument [Line Items] | ||
Derivative, Basis Spread on Variable Rate | 1.80% | 0.90% |
Notes Payable, Other Payables [Member] | 2.60% notes due 2026 (2.60% 2026 notes) [Member] | ||
Debt Instrument [Line Items] | ||
Notional amounts | $ 1,250 | $ 1,250 |
Interest rate, stated percentage | 2.60% | |
Notes Payable, Other Payables [Member] | 2.60% notes due 2026 (2.60% 2026 notes) [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument [Line Items] | ||
Derivative, Basis Spread on Variable Rate | 1.80% | 0.30% |
Notes Payable, Other Payables [Member] | 4.663% notes due 2051 (4.663% 2051 Notes) [Member] | ||
Debt Instrument [Line Items] | ||
Notional amounts | $ 1,500 | $ 1,500 |
Interest rate, stated percentage | 4.663% | |
Notes Payable, Other Payables [Member] | 4.663% notes due 2051 (4.663% 2051 Notes) [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument [Line Items] | ||
Derivative, Basis Spread on Variable Rate | 2.60% | 0.00% |
Financing arrangements (Interes
Financing arrangements (Interest Rate Swaps Textual) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Net cash provided by operating activities | $ 2,134 | $ 1,845 | |
Repayments of Long-term Debt | $ 3,250 | $ 1,000 | |
4.663% notes due 2051 (4.663% 2051 Notes) [Member] | |||
Debt Instrument [Line Items] | |||
Rate difference in an interest rate swap relationship | 1.50% | ||
Notes [Member] | |||
Debt Instrument [Line Items] | |||
Face amount | $ 5,000 | ||
Notes [Member] | 3.625% notes due 2024 (3.625% 2024 Notes) [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 3.625% | ||
Notes [Member] | 2.60% notes due 2026 (2.60% 2026 notes) [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 2.60% | ||
Notes [Member] | 4.663% notes due 2051 (4.663% 2051 Notes) [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 4.663% | ||
Notes [Member] | 3.625% notes due 2022 (3.625% 2022 Notes) [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 3.625% | ||
Notes [Member] | 3.125% notes due 2025 (3.125% 2025 Notes) [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 3.125% | ||
Forward Contracts [Member] | Designated as Hedging Instrument [Member] | |||
Debt Instrument [Line Items] | |||
Notional amounts | $ 4,900 | $ 5,000 | |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | |||
Debt Instrument [Line Items] | |||
Notional amounts | 7,400 | $ 9,600 | |
Value of derivative contracts terminated | 2,200 | ||
Net cash provided by operating activities | 576 | ||
$2.2 Billion Notional Value Interest Rate Swap [Member] | Forward Contracts [Member] | Designated as Hedging Instrument [Member] | |||
Debt Instrument [Line Items] | |||
Value of derivative contracts terminated | 2,200 | ||
$5.2 Billion Notional Value Interest Rate Swap, Original [Member] | Forward Contracts [Member] | Designated as Hedging Instrument [Member] | |||
Debt Instrument [Line Items] | |||
Value of derivative contracts terminated | 5,200 | ||
$5.2 Billion Notional Value Interest Rate Swap [Member] | Forward Contracts [Member] | Designated as Hedging Instrument [Member] | |||
Debt Instrument [Line Items] | |||
Notional amounts | $ 5,200 |
Stockholders' equity (Share Rep
Stockholders' equity (Share Repurchase Program) (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Equity [Abstract] | ||
Stock repurchased, Shares | 4.3 | 15.9 |
Stock repurchased | $ 933 | $ 3,031 |
Stockholders' equity (Details T
Stockholders' equity (Details Textual) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |||
Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Class of Stock [Line Items] | |||||
Stock repurchase program, additional authorized amount | $ 4,000,000,000 | ||||
Amount available for stock repurchases under a board approved stock repurchase plan | $ 5,500,000,000 | $ 5,500,000,000 | |||
Dividends declared per share (in usd per share) | $ 1.60 | $ 1.60 | $ 1.60 | $ 1.45 | |
Dividends paid per share (in usd per share) | $ 1.60 | ||||
Forecast [Member] | |||||
Class of Stock [Line Items] | |||||
Dividends paid per share (in usd per share) | $ 1.60 |
Stockholders' equity (Component
Stockholders' equity (Components of AOCI) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Increase (Decrease) in AOCI [Roll Forward] | ||
Balance as of beginning of period | $ 9,673 | $ 12,500 |
Foreign currency translation adjustments | (52) | (13) |
Balance as of end of period | 9,485 | 10,832 |
Foreign currency translation [Member] | ||
Increase (Decrease) in AOCI [Roll Forward] | ||
Balance as of beginning of period | (718) | |
Foreign currency translation adjustments | (52) | |
Income taxes | 0 | |
Balance as of end of period | (770) | |
Cash flow hedges [Member] | ||
Increase (Decrease) in AOCI [Roll Forward] | ||
Balance as of beginning of period | 175 | |
Unrealized (losses) gains | (162) | |
Reclassification adjustments to income | 84 | |
Income taxes | (17) | |
Balance as of end of period | 114 | |
Available-for-sale securities [Member] | ||
Increase (Decrease) in AOCI [Roll Forward] | ||
Balance as of beginning of period | 22 | |
Unrealized (losses) gains | 8 | |
Reclassification adjustments to income | (33) | |
Income taxes | (6) | |
Balance as of end of period | 3 | |
Other [Member] | ||
Increase (Decrease) in AOCI [Roll Forward] | ||
Balance as of beginning of period | (7) | |
Unrealized (losses) gains | 0 | |
Other | (2) | |
Balance as of end of period | (9) | |
AOCI [Member] | ||
Increase (Decrease) in AOCI [Roll Forward] | ||
Balance as of beginning of period | (528) | (769) |
Foreign currency translation adjustments | (52) | |
Unrealized (losses) gains | (154) | |
Reclassification adjustments to income | 51 | |
Other | (2) | |
Income taxes | 23 | |
Balance as of end of period | $ (662) | $ (516) |
Stockholders' equity (Reclassif
Stockholders' equity (Reclassifications out of AOCI) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest and other income, net | $ 11 | $ 185 |
Income before income taxes | 2,020 | 2,314 |
Provision for income taxes | (195) | (322) |
Net income | 1,825 | 1,992 |
Product sales [Member] | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
Product sales | 5,894 | 5,286 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Cash flow hedges [Member] | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
Income before income taxes | (84) | (28) |
Provision for income taxes | 18 | 6 |
Net income | (66) | (22) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Available-for-sale securities [Member] | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest and other income, net | 33 | (4) |
Provision for income taxes | (7) | 0 |
Net income | 26 | (4) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Foreign currency contract [Member] | Cash flow hedges [Member] | Product sales [Member] | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
Product sales | 49 | 14 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Cross-currency swap contract [Member] | Cash flow hedges [Member] | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest and other income, net | (133) | (42) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Cash flow hedges [Member] | Foreign currency contract [Member] | Cash flow hedges [Member] | Product sales [Member] | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
Product sales | 49 | 14 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Cash flow hedges [Member] | Cross-currency swap contract [Member] | Cash flow hedges [Member] | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest and other income, net | $ (133) | $ (42) |
Fair value measurement (Details
Fair value measurement (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Interest-bearing securities | $ 7,294 | $ 8,234 |
Equity securities | 220 | 303 |
Derivatives: | ||
Total assets | 7,988 | 9,086 |
Derivatives: | ||
Contingent consideration obligations | 60 | 61 |
Total liabilities | 745 | 407 |
Foreign currency contracts [Member] | ||
Derivatives: | ||
Foreign currency and cross-currency swap contracts | 375 | 224 |
Derivatives: | ||
Foreign currency and cross-currency swap contracts | 5 | 31 |
Cross-currency swap contracts [Member] | ||
Derivatives: | ||
Foreign currency and cross-currency swap contracts | 10 | 66 |
Derivatives: | ||
Foreign currency and cross-currency swap contracts | 657 | 315 |
Interest rate swap contracts [Member] | ||
Derivatives: | ||
Interest rate swap contracts | 89 | 259 |
Derivatives: | ||
Interest rate swap contracts | 23 | 0 |
Quoted prices in active markets for identical assets (Level 1) [Member] | ||
Assets: | ||
Equity securities | 220 | 303 |
Derivatives: | ||
Total assets | 7,058 | 5,913 |
Derivatives: | ||
Contingent consideration obligations | 0 | 0 |
Total liabilities | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) [Member] | Foreign currency contracts [Member] | ||
Derivatives: | ||
Foreign currency and cross-currency swap contracts | 0 | 0 |
Derivatives: | ||
Foreign currency and cross-currency swap contracts | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) [Member] | Cross-currency swap contracts [Member] | ||
Derivatives: | ||
Foreign currency and cross-currency swap contracts | 0 | 0 |
Derivatives: | ||
Foreign currency and cross-currency swap contracts | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) [Member] | Interest rate swap contracts [Member] | ||
Derivatives: | ||
Interest rate swap contracts | 0 | 0 |
Derivatives: | ||
Interest rate swap contracts | 0 | 0 |
Significant other observable inputs (Level 2) [Member] | ||
Assets: | ||
Equity securities | 0 | 0 |
Derivatives: | ||
Total assets | 930 | 3,173 |
Derivatives: | ||
Contingent consideration obligations | 0 | 0 |
Total liabilities | 685 | 346 |
Significant other observable inputs (Level 2) [Member] | Foreign currency contracts [Member] | ||
Derivatives: | ||
Foreign currency and cross-currency swap contracts | 375 | 224 |
Derivatives: | ||
Foreign currency and cross-currency swap contracts | 5 | 31 |
Significant other observable inputs (Level 2) [Member] | Cross-currency swap contracts [Member] | ||
Derivatives: | ||
Foreign currency and cross-currency swap contracts | 10 | 66 |
Derivatives: | ||
Foreign currency and cross-currency swap contracts | 657 | 315 |
Significant other observable inputs (Level 2) [Member] | Interest rate swap contracts [Member] | ||
Derivatives: | ||
Interest rate swap contracts | 89 | 259 |
Derivatives: | ||
Interest rate swap contracts | 23 | 0 |
Significant unobservable inputs (Level 3) [Member] | ||
Assets: | ||
Equity securities | 0 | 0 |
Derivatives: | ||
Total assets | 0 | 0 |
Derivatives: | ||
Contingent consideration obligations | 60 | 61 |
Total liabilities | 60 | 61 |
Significant unobservable inputs (Level 3) [Member] | Foreign currency contracts [Member] | ||
Derivatives: | ||
Foreign currency and cross-currency swap contracts | 0 | 0 |
Derivatives: | ||
Foreign currency and cross-currency swap contracts | 0 | 0 |
Significant unobservable inputs (Level 3) [Member] | Cross-currency swap contracts [Member] | ||
Derivatives: | ||
Foreign currency and cross-currency swap contracts | 0 | 0 |
Derivatives: | ||
Foreign currency and cross-currency swap contracts | 0 | 0 |
Significant unobservable inputs (Level 3) [Member] | Interest rate swap contracts [Member] | ||
Derivatives: | ||
Interest rate swap contracts | 0 | 0 |
Derivatives: | ||
Interest rate swap contracts | 0 | 0 |
U.S. Treasury notes [Member] | ||
Assets: | ||
Interest-bearing securities | 176 | 360 |
U.S. Treasury notes [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | ||
Assets: | ||
Interest-bearing securities | 176 | 360 |
U.S. Treasury notes [Member] | Significant other observable inputs (Level 2) [Member] | ||
Assets: | ||
Interest-bearing securities | 0 | 0 |
U.S. Treasury notes [Member] | Significant unobservable inputs (Level 3) [Member] | ||
Assets: | ||
Interest-bearing securities | 0 | 0 |
U.S. Treasury bills [Member] | ||
Assets: | ||
Interest-bearing securities | 900 | 0 |
U.S. Treasury bills [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | ||
Assets: | ||
Interest-bearing securities | 900 | 0 |
U.S. Treasury bills [Member] | Significant other observable inputs (Level 2) [Member] | ||
Assets: | ||
Interest-bearing securities | 0 | 0 |
U.S. Treasury bills [Member] | Significant unobservable inputs (Level 3) [Member] | ||
Assets: | ||
Interest-bearing securities | 0 | 0 |
Corporate debt securities - Financial [Member] | ||
Assets: | ||
Interest-bearing securities | 12 | 1,121 |
Corporate debt securities - Financial [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | ||
Assets: | ||
Interest-bearing securities | 0 | 0 |
Corporate debt securities - Financial [Member] | Significant other observable inputs (Level 2) [Member] | ||
Assets: | ||
Interest-bearing securities | 12 | 1,121 |
Corporate debt securities - Financial [Member] | Significant unobservable inputs (Level 3) [Member] | ||
Assets: | ||
Interest-bearing securities | 0 | 0 |
Corporate debt securities - Industrial [Member] | ||
Assets: | ||
Interest-bearing securities | 12 | 834 |
Corporate debt securities - Industrial [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | ||
Assets: | ||
Interest-bearing securities | 0 | 0 |
Corporate debt securities - Industrial [Member] | Significant other observable inputs (Level 2) [Member] | ||
Assets: | ||
Interest-bearing securities | 12 | 834 |
Corporate debt securities - Industrial [Member] | Significant unobservable inputs (Level 3) [Member] | ||
Assets: | ||
Interest-bearing securities | 0 | 0 |
Corporate debt securities - Other [Member] | ||
Assets: | ||
Interest-bearing securities | 0 | 198 |
Corporate debt securities - Other [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | ||
Assets: | ||
Interest-bearing securities | 0 | 0 |
Corporate debt securities - Other [Member] | Significant other observable inputs (Level 2) [Member] | ||
Assets: | ||
Interest-bearing securities | 0 | 198 |
Corporate debt securities - Other [Member] | Significant unobservable inputs (Level 3) [Member] | ||
Assets: | ||
Interest-bearing securities | 0 | 0 |
Residential mortgage-backed securities [Member] | ||
Assets: | ||
Interest-bearing securities | 0 | 182 |
Residential mortgage-backed securities [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | ||
Assets: | ||
Interest-bearing securities | 0 | 0 |
Residential mortgage-backed securities [Member] | Significant other observable inputs (Level 2) [Member] | ||
Assets: | ||
Interest-bearing securities | 0 | 182 |
Residential mortgage-backed securities [Member] | Significant unobservable inputs (Level 3) [Member] | ||
Assets: | ||
Interest-bearing securities | 0 | 0 |
Money market mutual funds [Member] | ||
Assets: | ||
Interest-bearing securities | 5,762 | 5,250 |
Money market mutual funds [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | ||
Assets: | ||
Interest-bearing securities | 5,762 | 5,250 |
Money market mutual funds [Member] | Significant other observable inputs (Level 2) [Member] | ||
Assets: | ||
Interest-bearing securities | 0 | 0 |
Money market mutual funds [Member] | Significant unobservable inputs (Level 3) [Member] | ||
Assets: | ||
Interest-bearing securities | 0 | 0 |
Other short-term interest-bearing securities [Member] | ||
Assets: | ||
Interest-bearing securities | 432 | 289 |
Other short-term interest-bearing securities [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | ||
Assets: | ||
Interest-bearing securities | 0 | 0 |
Other short-term interest-bearing securities [Member] | Significant other observable inputs (Level 2) [Member] | ||
Assets: | ||
Interest-bearing securities | 432 | 289 |
Other short-term interest-bearing securities [Member] | Significant unobservable inputs (Level 3) [Member] | ||
Assets: | ||
Interest-bearing securities | $ 0 | $ 0 |
Fair value measurement (Detai_2
Fair value measurement (Details Textual) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Business Acquisition [Line Items] | ||
Length of time hedged in foreign currency contracts (or less) | 3 years | |
Long-term debt, fair value | $ 35,800 | $ 33,700 |
Carrying value of debt | $ 31,848 | $ 29,903 |
Other Government-related and Corporate Debt Securities [Member] | ||
Business Acquisition [Line Items] | ||
Investment maturity period | 3 years |
Derivative instruments (Details
Derivative instruments (Details Textual) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net cash provided by operating activities | $ 2,134 | $ 1,845 | |
Foreign currency and cross currency swap contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amounts expected to be reclassified from AOCI into earnings over the next 12 months, foreign currency and cross-currency swaps | (162) | ||
Derivatives designated as hedging instrument [Member] | Foreign currency forward contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, notional amount | 4,900 | $ 5,000 | |
Derivatives designated as hedging instrument [Member] | Interest Rate Swap [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, notional amount | 7,400 | 9,600 | |
Value of derivative contracts terminated | 2,200 | ||
Value of derivative contracts terminated resulting in net cash provided by operating activities | 5,200 | ||
Net cash provided by operating activities | 576 | ||
Derivatives not designated as hedging instrument [Member] | Foreign currency forward contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, notional amount | 800 | 1,200 | |
Interest Expense, Net [Member] | Interest Rate Swap [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain recognized from termination of contracts | 17 | ||
Long-term debt [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Hedged Liability, Fair Value Hedge | 7,784 | $ 8,814 | |
Long-term debt [Member] | Interest Rate Swap, At-Then Current Interest Rates [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Hedged Liability, Fair Value Hedge | $ 5,200 |
Derivative instruments (Cross-c
Derivative instruments (Cross-currency Swaps) (Details) - Cash flow hedge [Member] - Cross-currency swap contracts [Member] € in Millions, £ in Millions, SFr in Millions, $ in Millions | Mar. 31, 2020GBP (£) | Mar. 31, 2020USD ($) | Mar. 31, 2020CHF (SFr) | Mar. 31, 2020EUR (€) |
1.25% 2022 euro Notes [Member] | ||||
Derivative [Line Items] | ||||
Notional amounts | $ 1,388 | € 1,250 | ||
0.41% 2023 Swiss franc Bonds [Member] | ||||
Derivative [Line Items] | ||||
Notional amounts | 704 | SFr 700 | ||
2.00% 2026 euro Notes [Member] | ||||
Derivative [Line Items] | ||||
Notional amounts | 833 | € 750 | ||
5.50% 2026 pound sterling Notes [Member] | ||||
Derivative [Line Items] | ||||
Notional amounts | £ 475 | 747 | ||
4.00% 2029 pound sterling Notes [Member] | ||||
Derivative [Line Items] | ||||
Notional amounts | £ 700 | $ 1,111 | ||
Euro Member Countries, Euro | 1.25% 2022 euro Notes [Member] | ||||
Derivative [Line Items] | ||||
Interest rates | 1.30% | 1.30% | 1.30% | 1.30% |
Euro Member Countries, Euro | 2.00% 2026 euro Notes [Member] | ||||
Derivative [Line Items] | ||||
Interest rates | 2.00% | 2.00% | 2.00% | 2.00% |
Switzerland, Francs | 0.41% 2023 Swiss franc Bonds [Member] | ||||
Derivative [Line Items] | ||||
Interest rates | 0.40% | 0.40% | 0.40% | 0.40% |
United Kingdom, Pounds | 5.50% 2026 pound sterling Notes [Member] | ||||
Derivative [Line Items] | ||||
Interest rates | 5.50% | 5.50% | 5.50% | 5.50% |
United Kingdom, Pounds | 4.00% 2029 pound sterling Notes [Member] | ||||
Derivative [Line Items] | ||||
Interest rates | 4.00% | 4.00% | 4.00% | 4.00% |
United States of America, Dollars | 1.25% 2022 euro Notes [Member] | ||||
Derivative [Line Items] | ||||
Interest rates | 3.20% | 3.20% | 3.20% | 3.20% |
United States of America, Dollars | 0.41% 2023 Swiss franc Bonds [Member] | ||||
Derivative [Line Items] | ||||
Interest rates | 3.40% | 3.40% | 3.40% | 3.40% |
United States of America, Dollars | 2.00% 2026 euro Notes [Member] | ||||
Derivative [Line Items] | ||||
Interest rates | 3.90% | 3.90% | 3.90% | 3.90% |
United States of America, Dollars | 5.50% 2026 pound sterling Notes [Member] | ||||
Derivative [Line Items] | ||||
Interest rates | 6.00% | 6.00% | 6.00% | 6.00% |
United States of America, Dollars | 4.00% 2029 pound sterling Notes [Member] | ||||
Derivative [Line Items] | ||||
Interest rates | 4.50% | 4.50% | 4.50% | 4.50% |
Derivative instruments (Effecti
Derivative instruments (Effective Portion of Unrealized Gain (Loss)) (Details) - Cash flow hedge [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total unrealized (losses) gains | $ (162) | $ 30 |
Foreign currency contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total unrealized (losses) gains | 239 | 85 |
Cross-currency swap contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total unrealized (losses) gains | $ (401) | $ (55) |
Derivative instruments (Hedged
Derivative instruments (Hedged Liabilities and Cumulative Amount) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Cumulative amounts of fair value hedging adjustments related to the carrying amounts of the hedged liabilities | $ 648 | $ 296 |
Current portion of long-term debt [Member] | ||
Derivative [Line Items] | ||
Hedged Liability, Fair Value Hedge | 90 | 903 |
Cumulative amounts of fair value hedging adjustments related to the carrying amounts of the hedged liabilities | 90 | 4 |
Carrying value with discontinued hedging relationships | 90 | |
Hedging adjustments on discontinued hedging relationships | 90 | |
Long-term debt [Member] | ||
Derivative [Line Items] | ||
Hedged Liability, Fair Value Hedge | 7,784 | 8,814 |
Cumulative amounts of fair value hedging adjustments related to the carrying amounts of the hedged liabilities | 558 | 292 |
Carrying value with discontinued hedging relationships | 592 | 136 |
Hedging adjustments on discontinued hedging relationships | $ 492 | $ 36 |
Derivative instruments (Summary
Derivative instruments (Summary of Income and Expense Line Items) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Interest and other income, net | $ 11 | $ 185 |
Interest expense, net | (346) | (343) |
Interest rate swap agreements [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) on fair value hedging relationships, Hedged items | 210 | (130) |
Gains (losses) on fair value hedging relationships, Derivatives designated as hedging instruments | (190) | 133 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Cash flow hedges [Member] | Cross-currency swap contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Interest and other income, net | (133) | (42) |
Product sales [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Product sales | 5,894 | 5,286 |
Product sales [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Cash flow hedges [Member] | Foreign currency contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Product sales | $ 49 | $ 14 |
Derivative instruments (Fair Va
Derivative instruments (Fair Value of Derivatives) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Total derivative assets, fair value | $ 474 | $ 549 |
Liabilities | ||
Total derivative liabilities, fair value | 685 | 346 |
Derivatives designated as hedging instrument [Member] | ||
Assets | ||
Total derivative assets, fair value | 474 | 548 |
Liabilities | ||
Total derivative liabilities, fair value | 685 | 346 |
Derivatives designated as hedging instrument [Member] | Foreign currency contracts [Member] | Other current assets/Other assets [Member] | ||
Assets | ||
Total derivative assets, fair value | 375 | 223 |
Derivatives designated as hedging instrument [Member] | Foreign currency contracts [Member] | Accrued liabilities/Other noncurrent liabilities [Member] | ||
Liabilities | ||
Total derivative liabilities, fair value | 5 | 31 |
Derivatives designated as hedging instrument [Member] | Cross-currency swap contracts [Member] | Other current assets/Other assets [Member] | ||
Assets | ||
Total derivative assets, fair value | 10 | 66 |
Derivatives designated as hedging instrument [Member] | Cross-currency swap contracts [Member] | Accrued liabilities/Other noncurrent liabilities [Member] | ||
Liabilities | ||
Total derivative liabilities, fair value | 657 | 315 |
Derivatives designated as hedging instrument [Member] | Interest rate swap contracts [Member] | Other current assets/Other assets [Member] | ||
Assets | ||
Total derivative assets, fair value | 89 | 259 |
Derivatives designated as hedging instrument [Member] | Interest rate swap contracts [Member] | Accrued liabilities/Other noncurrent liabilities [Member] | ||
Liabilities | ||
Total derivative liabilities, fair value | 23 | 0 |
Derivatives not designated as hedging instrument [Member] | ||
Assets | ||
Total derivative assets, fair value | 0 | 1 |
Liabilities | ||
Total derivative liabilities, fair value | 0 | 0 |
Derivatives not designated as hedging instrument [Member] | Foreign currency contracts [Member] | Other current assets [Member] | ||
Assets | ||
Total derivative assets, fair value | 0 | 1 |
Derivatives not designated as hedging instrument [Member] | Foreign currency contracts [Member] | Accrued liabilities [Member] | ||
Liabilities | ||
Total derivative liabilities, fair value | $ 0 | $ 0 |
Contingencies and commitments (
Contingencies and commitments (Details) - Hospira, Inc. [Member] - USD ($) $ in Millions | Apr. 17, 2020 | Mar. 23, 2020 |
Loss Contingencies [Line Items] | ||
Amount awarded from settlement | $ 70 | |
Subsequent Event [Member] | ||
Loss Contingencies [Line Items] | ||
Amount received from settlement | $ 83 |
Uncategorized Items - amgn-2020
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (2,000,000) |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (2,000,000) |