Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 22, 2022 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
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 | 2022 | |
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 | 534,199,933 | |
The NASDAQ Global Select Market [Member] | Common Stock [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common stock, $0.0001 par value | |
Trading Symbol | AMGN | |
Security Exchange Name | NASDAQ | |
The NASDAQ Global Select Market [Member] | 2.00% Senior Notes Due 2026 [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 2.00% Senior Notes due 2026 | |
Trading Symbol | AMGN26 | |
Security Exchange Name | NASDAQ |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 1,476 | $ 1,646 |
Other comprehensive income, net of reclassification adjustments and taxes: | ||
Foreign currency translation | (51) | (39) |
Cash flow hedges | 84 | 190 |
Other | 0 | 1 |
Other comprehensive income, net of reclassification adjustments and taxes | 33 | 152 |
Comprehensive income | $ 1,509 | $ 1,798 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenues: | ||
Total revenues | $ 6,238 | $ 5,901 |
Operating expenses: | ||
Cost of sales | 1,561 | 1,490 |
Research and development | 959 | 967 |
Selling, general and administrative | 1,228 | 1,254 |
Other | (10) | 61 |
Total operating expenses | 3,738 | 3,772 |
Operating income | 2,500 | 2,129 |
Interest expense, net | (295) | (285) |
Other (expense) income, net | (530) | 13 |
Income before income taxes | 1,675 | 1,857 |
Provision for income taxes | 199 | 211 |
Net income | $ 1,476 | $ 1,646 |
Earnings per share: | ||
Basic (in usd per share) | $ 2.69 | $ 2.85 |
Diluted (in usd per share) | $ 2.68 | $ 2.83 |
Shares used in calculation of earnings per share: | ||
Basic (in shares) | 548 | 577 |
Diluted (in shares) | 551 | 581 |
Product sales [Member] | ||
Revenues: | ||
Total revenues | $ 5,731 | $ 5,592 |
Other revenues [Member] | ||
Revenues: | ||
Total revenues | $ 507 | $ 309 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 6,528 | $ 7,989 |
Marketable securities | 16 | 48 |
Trade receivables, net | 5,077 | 4,895 |
Inventories | 4,411 | 4,086 |
Other current assets | 2,488 | 2,367 |
Total current assets | 18,520 | 19,385 |
Property, plant and equipment, net | 5,142 | 5,184 |
Intangible assets, net | 14,567 | 15,182 |
Goodwill | 14,897 | 14,890 |
Other noncurrent assets | 6,070 | 6,524 |
Total assets | 59,196 | 61,165 |
Current liabilities: | ||
Accounts payable | 1,403 | 1,366 |
Accrued liabilities | 10,639 | 10,731 |
Current portion of long-term debt | 844 | 87 |
Total current liabilities | 12,886 | 12,184 |
Long-term debt | 36,010 | 33,222 |
Long-term tax liabilities | 6,652 | 6,594 |
Other noncurrent liabilities | 2,732 | 2,465 |
Contingencies and commitments | ||
Stockholders’ equity: | ||
Common stock and additional paid-in capital; $0.0001 par value; 2,750.0 shares authorized; outstanding—534.2 shares in 2022 and 558.3 shares in 2021 | 31,247 | 32,096 |
Accumulated deficit | (29,568) | (24,600) |
Accumulated other comprehensive loss | (763) | (796) |
Total stockholders’ equity | 916 | 6,700 |
Total liabilities and stockholders’ equity | $ 59,196 | $ 61,165 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
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 | 534.2 | 558.3 |
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, 2020 | 578.3 | ||||
Balance as of beginning of period at Dec. 31, 2020 | $ 9,409 | $ 31,802 | $ (21,408) | $ (985) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income for basic and diluted EPS | 1,646 | 1,646 | |||
Other comprehensive income (loss), net of taxes | 152 | 152 | |||
Dividends declared on common stock | (1,012) | (1,012) | |||
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 | 57 | 57 | |||
Tax impact related to employee stock-based compensation expense | (59) | (59) | |||
Repurchases of common stock, Shares | (3.7) | ||||
Repurchases of common stock | (865) | (865) | |||
Ending Balance, Shares at Mar. 31, 2021 | 575.3 | ||||
Balance as of end of period at Mar. 31, 2021 | $ 9,334 | 31,806 | (21,639) | (833) | |
Beginning Balance, Shares at Dec. 31, 2021 | 558.3 | 558.3 | |||
Balance as of beginning of period at Dec. 31, 2021 | $ 6,700 | 32,096 | (24,600) | (796) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income for basic and diluted EPS | 1,476 | 1,476 | |||
Other comprehensive income (loss), net of taxes | 33 | 33 | |||
Dividends declared on common stock | (1,034) | (1,034) | |||
Issuance of common stock in connection with the Company’s equity award programs, Shares | 0.5 | ||||
Issuance of common stock in connection with the Company’s equity award programs | 18 | 18 | |||
Stock-based compensation expense | 78 | 78 | |||
Tax impact related to employee stock-based compensation expense | (45) | (45) | |||
Repurchases of common stock, Shares | (24.6) | ||||
Repurchases of common stock | $ (6,310) | (900) | (5,410) | ||
Ending Balance, Shares at Mar. 31, 2022 | 534.2 | 534.2 | |||
Balance as of end of period at Mar. 31, 2022 | $ 916 | $ 31,247 | $ (29,568) | $ (763) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 1 Months Ended | 3 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||
Common stock, dividends declared per share (in usd per share) | $ 1.94 | $ 1.94 | $ 1.94 | $ 1.76 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 1,476 | $ 1,646 |
Depreciation, amortization and other | 841 | 841 |
Deferred income taxes | (251) | (91) |
Adjustments for equity method investments | (305) | 85 |
Other items, net | 240 | 164 |
Changes in operating assets and liabilities, net of acquisitions: | ||
Trade receivables, net | (195) | 91 |
Inventories | (230) | (126) |
Other assets | (43) | (146) |
Accounts payable | 42 | (29) |
Accrued income taxes, net | 318 | 52 |
Long-term tax liabilities | 57 | 69 |
Other liabilities | (396) | (282) |
Net cash provided by operating activities | 2,164 | 2,104 |
Cash flows from investing activities: | ||
Purchases of marketable securities | 0 | (7,597) |
Proceeds from sales of marketable securities | 0 | 3,999 |
Proceeds from maturities of marketable securities | 32 | 3,524 |
Purchases of property, plant and equipment | (190) | (166) |
Other | 47 | (79) |
Net cash used in investing activities | (111) | (319) |
Cash flows from financing activities: | ||
Net proceeds from issuance of debt | 3,952 | 0 |
Repurchases of common stock (Note 10) | (6,360) | (871) |
Dividends paid | (1,080) | (1,016) |
Other | (26) | (52) |
Net cash used in financing activities | (3,514) | (1,939) |
Decrease in cash and cash equivalents | (1,461) | (154) |
Cash and cash equivalents at beginning of period | 7,989 | 6,266 |
Cash and cash equivalents at end of period | $ 6,528 | $ 6,112 |
Summary of significant accounti
Summary of significant accounting policies | 3 Months Ended |
Mar. 31, 2022 | |
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, 2022 and 2021, 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, 2021. Principles of consolidation The condensed consolidated financial statements include the accounts of Amgen as well as its majority-owned subsidiaries. In determining whether we are the primary beneficiary of a variable interest entity, we consider whether we have both the power to direct activities of the entity that most significantly impact the entity’s economic performance and the obligation to absorb losses of or the right to receive benefits from the entity that could potentially be significant to that entity. We do not have any significant interests in any variable interest entities of which we are the primary beneficiary. All material intercompany transactions and balances have been eliminated in consolidation. Use of estimates The preparation of condensed consolidated financial statements in conformity with 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 $8.9 billion and $8.8 billion as of March 31, 2022 and December 31, 2021, respectively. Recent accounting pronouncements In March 2020, the FASB issued a new accounting standard to ease the financial reporting burdens caused by the expected market transition from 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 is permitted to 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. In January 2021, the FASB issued a new accounting standard that expanded the scope of the original March 2020 standard to include derivative instruments on discounting transactions. We do not expect the two standards to have a material impact on our condensed consolidated financial statements. In November 2021, the FASB issued a new accounting standard around the recognition and measurement of contract assets and contract liabilities from revenue contracts with customers acquired in a business combination. The new standard clarifies that contract assets and contract liabilities acquired in a business combination from an acquiree should initially be recognized by applying revenue recognition principles and not at fair value. The standard is effective for interim and annual periods beginning on January 1, 2023, and early adoption is permitted. The impact of this standard will depend on the facts and circumstances of future transactions. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions Teneobio, Inc. On October 19, 2021, we acquired all of the outstanding stock of Teneobio, a privately held, clinical-stage biotechnology company developing a new class of biologics called human heavy-chain antibodies, which are single-chain antibodies composed of the human heavy-chain domain. The transaction, which was accounted for as a business combination, includes Teneobio’s proprietary bispecific and multispecific antibody technologies, which complement Amgen’s existing antibody capabilities and BiTE ® platform and will enable significant acceleration and efficiency in the discovery and development of new molecules to treat diseases across Amgen’s core therapeutic areas. Upon its acquisition, Teneobio became a wholly owned subsidiary of Amgen, and its operations have been included in our condensed consolidated financial statements commencing on the acquisition date. Measurement period adjustments for the three months ended March 31, 2022, included changes to the purchase price allocation and total consideration, resulting in a net increase of $22 million to goodwill. The measurement period adjustments resulted primarily from valuation inputs pertaining to certain acquired assets based on facts and circumstances that existed as of the acquisition date and did not result from events subsequent to the acquisition date. These adjustments did not have a significant impact on Amgen’s results of operations for the three months ended March 31, 2022, and would not have had a significant impact on prior-period results if these adjustments had been made as of the acquisition date. The following table summarizes the total consideration and allocated acquisition date fair values of assets acquired and liabilities assumed, inclusive of measurement period adjustments (in millions): Amounts Cash purchase price $ 993 Contingent consideration 299 Total consideration $ 1,292 Cash and cash equivalents $ 100 IPR&D 991 Finite-lived intangible asset – R&D technology rights 115 Finite-lived intangible assets – licensing rights 41 Goodwill 273 Other assets, net 16 Deferred tax liability (244) Total assets acquired, net $ 1,292 The consideration for this transaction comprised (i) an upfront cash payment of $993 million, which included a working-capital adjustment, and (ii) future contingent milestone payments to Teneobio’s former equity holders of up to $1.6 billion in cash, based on the achievement of various development and regulatory milestones with regard to the leading asset (AMG 340, formerly TNB-585) and to various development milestones for other drug candidates. The estimated fair values of the contingent consideration obligations aggregated $299 million as of the acquisition date and were determined using a probability-weighted expected return methodology. The assumptions in this method include the probability of achieving the milestones and the expected payment dates, with such amounts discounted to present value based on our pre-tax cost of debt. See Note 11, Fair value measurement, for information regarding the estimated fair value of these obligations as of March 31, 2022. The estimated fair values of acquired IPR&D assets totaled $991 million, of which $784 million relates to AMG 340, that is in a phase 1 clinical trial for the treatment of mCRPC, and the balance relates to four separate preclinical oncology programs. The R&D technology rights of $115 million relate to Teneobio’s proprietary bispecific and multispecific antibody technologies and will be amortized over 10 years using the straight-line method. Teneobio has also licensed its technology and certain identified targets to various third parties, representing contractual agreements valued at $41 million. The estimated fair values for these intangible assets were determined using a multi-period excess earnings income approach that discounts expected future cash flows to present value by applying a discount rate that represents the estimated rate that market participants would use to value the intangible assets. The projected cash flows were based on certain assumptions attributable to the respective intangible asset, including estimates of future revenues and expenses, the time and resources needed to complete development and the probabilities of obtaining marketing approval from the FDA and other regulatory agencies. A deferred tax liability of $244 million was recognized on the temporary differences related to the book bases and tax bases of the acquired identifiable assets and assumed liabilities, primarily driven by the intangible assets acquired. The excess of the acquisition date consideration over the fair values assigned to the assets acquired and the liabilities assumed of $273 million was recorded as goodwill, which is not deductible for tax purposes. The goodwill value represents expected synergies from both AMG 340 and the technologies acquired. Our accounting for this acquisition is preliminary and will be finalized upon completion of our analysis to determine the acquisition date fair values of certain assets acquired, liabilities assumed and tax-related items as we obtain additional information during the measurement period of up to one year from the acquisition date. |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2022 | |
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. The majority of ROW revenues relates to products sold in Europe. Revenues were as follows (in millions): Three months ended March 31, 2022 2021 U.S. ROW Total U.S. ROW Total Enbrel $ 843 $ 19 $ 862 $ 894 $ 30 $ 924 Prolia 582 270 852 501 257 758 XGEVA 368 134 502 334 134 468 Otezla 350 101 451 366 110 476 Aranesp 137 221 358 125 230 355 Neulasta 304 44 348 421 61 482 Repatha 165 164 329 139 147 286 KYPROLIS 196 91 287 159 92 251 Nplate 156 110 266 112 115 227 Other products 936 540 1,476 852 513 1,365 Total product sales (1) $ 4,037 $ 1,694 5,731 $ 3,903 $ 1,689 5,592 Other revenues 507 309 Total revenues $ 6,238 $ 5,901 ____________ |
Income taxes
Income taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes The effective tax rates for the three months ended March 31, 2022 and 2021, were 11.9% and 11.4%, respectively. The increase in our effective tax rate for the three months ended March 31, 2022, was primarily due to current year net unfavorable items compared to last year, offset by changes in earnings mix. 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 treated as a foreign jurisdiction for U.S. tax purposes, that are subject to a tax incentive grant through 2035. In addition, the Company’s operations conducted in Singapore are subject to a tax incentive grant through 2034. These foreign 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, in 2022 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 can and have arisen 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. Tax authorities (including the IRS) are becoming more aggressive and are particularly focused on such matters. In 2017, we received an RAR and a modified RAR from the IRS for the years 2010, 2011 and 2012 proposing significant adjustments that primarily relate to the allocation of profits between certain of our entities in the United States and the U.S. territory of Puerto Rico. We disagreed with the proposed adjustments and calculations and pursued resolution with the IRS appeals office but were unable to reach resolution. In July 2021, we filed a petition in the U.S. Tax Court to contest two duplicate Statutory Notices of Deficiency (Notices) for 2010, 2011 and 2012 that we received in May and July 2021, which seek to increase our U.S. taxable income for 2010-2012 by an amount that would result in additional federal tax of approximately $3.6 billion plus interest. Any additional tax that could be imposed for 2010-2012 would be reduced by up to approximately $900 million of repatriation tax previously accrued on our foreign earnings. In 2020, we received an RAR and a modified RAR from the IRS for the years 2013, 2014 and 2015, also proposing significant adjustments that primarily relate to the allocation of profits between certain of our entities in the United States and the U.S. territory of Puerto Rico similar to those proposed for the years 2010, 2011 and 2012. We disagreed with the proposed adjustments and calculations and pursued resolution with the IRS appeals office but were unable to reach resolution. In April 2022, we received a Notice that seeks to increase our U.S. taxable income for 2013-2015 by an amount that would result in additional federal tax of approximately $5.1 billion, plus interest. In addition, the Notice asserts penalties of approximately $2.0 billion. Any additional tax that could be imposed for 2013-2015 would be reduced by up to approximately $2.2 billion of repatriation tax previously accrued on our foreign earnings. We firmly believe that the IRS positions set forth in the 2010-2012 and 2013-2015 Notices are without merit. We are contesting the 2010-2012 Notices through the judicial process, and we expect to file a Petition in the U.S. Tax Court to contest the 2013-2015 Notice through the judicial process. We will seek consolidation of the two periods into one case in Tax Court. We are also currently under examination by the IRS for the years 2016, 2017 and 2018 and by a number of state and foreign tax jurisdictions. Final resolution of these complex matters is not likely within the next 12 months. We believe our accrual for income tax liabilities is appropriate based on past experience, interpretations of tax law, application of the tax law to our facts and judgments about potential actions by tax authorities; however, due to the complexity of the provision for income taxes and uncertain resolution of these matters, the ultimate outcome of any tax matters may result in payments substantially greater than amounts accrued and could have a material adverse impact on our condensed consolidated financial statements. We are no longer subject to U.S. federal income tax examinations for years ended on or before December 31, 2009. See Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations, Income Taxes for further discussion and Part II, Item 1A, Risk Factors— The adoption and interpretation of new tax legislation or exposure to additional tax liabilities could affect our profitability . |
Earnings per share
Earnings per share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings per share | Earnings per share The computation of basic 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 primarily include 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 2022 2021 Income (Numerator): Net income for basic and diluted EPS $ 1,476 $ 1,646 Shares (Denominator): Weighted-average shares for basic EPS 548 577 Effect of dilutive securities 3 4 Weighted-average shares for diluted EPS 551 581 Basic EPS $ 2.69 $ 2.85 Diluted EPS $ 2.68 $ 2.83 For the three months ended March 31, 2022 and 2021, the number of antidilutive employee stock-based awards excluded from the computation of diluted EPS was not significant. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following (in millions): March 31, 2022 December 31, 2021 Raw materials $ 750 $ 647 Work in process 2,582 2,367 Finished goods 1,079 1,072 Total inventories $ 4,411 $ 4,086 |
Goodwill and other intangible a
Goodwill and other intangible assets | 3 Months Ended |
Mar. 31, 2021 | |
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 $ 14,890 Goodwill resulting from acquisition of a business (1) 22 Currency translation adjustment (15) Ending balance $ 14,897 ____________ (1) Composed of adjustments to goodwill resulting from changes to the acquisition date fair values of net assets acquired in the acquisition of Teneobio (see Note 2, Acquisitions). Other intangible assets Other intangible assets consisted of the following (in millions): March 31, 2022 December 31, 2021 Gross Accumulated Other intangible Gross Accumulated Other intangible Finite-lived intangible assets: Developed-product-technology rights $ 25,550 $ (13,316) $ 12,234 $ 25,561 $ (12,769) $ 12,792 Licensing rights 3,864 (3,013) 851 3,807 (2,973) 834 Marketing-related rights 1,350 (1,129) 221 1,354 (1,112) 242 Research and development technology rights 1,386 (1,146) 240 1,377 (1,133) 244 Total finite-lived intangible assets 32,150 (18,604) 13,546 32,099 (17,987) 14,112 Indefinite-lived intangible assets: In-process research and development 1,021 — 1,021 1,070 — 1,070 Total other intangible assets $ 33,171 $ (18,604) $ 14,567 $ 33,169 $ (17,987) $ 15,182 Developed-product-technology rights consists of rights related to marketed products. Licensing rights primarily consists 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 upfront payments associated with royalty obligations for marketed products. Marketing-related rights primarily consists 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. 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. |
Financing arrangements
Financing arrangements | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Financing arrangements | Our borrowings consisted of the following (in millions): March 31, 2022 December 31, 2021 0.41% CHF700 million bonds due 2023 (0.41% 2023 Swiss franc Bonds) $ 759 $ 767 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) 500 500 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) 830 853 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) 624 643 2.20% notes due 2027 (2.20% 2027 Notes) 1,750 1,750 3.20% notes due 2027 (3.20% 2027 Notes) 1,000 1,000 1.65% notes due 2028 (1.65% 2028 Notes) 1,250 1,250 3.00% notes due 2029 (3.00% 2029 Notes) 750 — 4.00% £700 million notes due 2029 (4.00% 2029 pound sterling Notes) 920 947 2.45% notes due 2030 (2.45% 2030 Notes) 1,250 1,250 2.30% notes due 2031 (2.30% 2031 Notes) 1,250 1,250 2.00% notes due 2032 (2.00% 2032 Notes) 1,250 1,250 3.35% notes due 2032 (3.35% 2032 Notes) 1,000 — 6.375% notes due 2037 (6.375% 2037 Notes) 478 478 6.90% notes due 2038 (6.90% 2038 Notes) 254 254 6.40% notes due 2039 (6.40% 2039 Notes) 333 333 3.15% notes due 2040 (3.15% 2040 Notes) 2,000 2,000 5.75% notes due 2040 (5.75% 2040 Notes) 373 373 2.80% notes due 2041 (2.80% 2041 Notes) 1,150 1,150 4.95% notes due 2041 (4.95% 2041 Notes) 600 600 5.15% notes due 2041 (5.15% 2041 Notes) 729 729 5.65% notes due 2042 (5.65% 2042 Notes) 415 415 5.375% notes due 2043 (5.375% 2043 Notes) 185 185 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) 2,250 2,250 4.663% notes due 2051 (4.663% 2051 Notes) 3,541 3,541 3.00% notes due 2052 (3.00% 2052 Notes) 1,350 1,350 4.20% notes due 2052 (4.20% 2052 Notes) 1,000 — 2.77% notes due 2053 (2.77% 2053 Notes) 940 940 4.40% notes due 2062 (4.40% 2062 Notes) 1,250 — Other notes due 2097 100 100 Unamortized bond discounts, premiums and issuance costs, net (1,253) (1,213) Fair value adjustments (53) 284 Other 14 15 Total carrying value of debt 36,854 33,309 Less current portion (844) (87) Total long-term debt $ 36,010 $ 33,222 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, the 4.663% 2051 Notes and the 2.77% 2053 Notes, which have effective interest rates of 6.3%, 5.6% and 5.2%, respectively. |
Stockholders' equity
Stockholders' equity | 3 Months Ended |
Mar. 31, 2022 | |
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): 2022 2021 Shares Dollars Shares Dollars First quarter 24.6 $ 5,410 3.7 $ 865 On February 24, 2022, the Company entered into ASR agreements with three third-party financial institutions (Dealers). Under the ASR agreements, the Company made payments in an aggregate amount of $6.0 billion on February 25, 2022, to the Dealers and received and retired an initial 23.3 million shares of the Company’s common stock from the Dealers. The payments were recorded as reductions to shareholders’ equity, consisting of a $5.1 billion increase to accumulated deficit, which reflects the value of the initial shares received, and a $0.9 billion decrease in additional paid-in capital, which reflects the value of the stock that remains to be delivered by the Dealers pending final settlement. The final number of shares to be repurchased by the Company will be based on the daily volume-weighted average stock price of the Company’s common stock during the terms of the ASR agreements, less a discount and subject to adjustments pursuant to the terms and conditions of the ASR agreements. At settlement, under certain circumstances, one or more of the Dealers may be required to deliver additional shares of common stock to the Company, or under certain circumstances, the Company may be required to deliver shares of common stock or to make a cash payment, at its election, to a Dealer. The final settlement under the ASR agreements is scheduled to occur in the third quarter of 2022, subject to an earlier termination under certain limited circumstances, as set forth in the ASR agreements. In total, we repurchased 24.6 million shares of common stock in the first quarter of 2022, including shares received under the ASR agreements. As of March 31, 2022, $4.6 billion of authorization remained available under our stock repurchase program. Dividends In March 2022, the Board of Directors declared a quarterly cash dividend of $1.94 per share, which will be paid in June 2022. In December 2021, the Board of Directors declared a quarterly cash dividend of $1.94 per share, which was paid in March 2022. Accumulated other comprehensive income (loss) The components of AOCI were as follows (in millions): Foreign Cash flow Available-for-sale Other AOCI Balance as of December 31, 2021 $ (844) $ 61 $ — $ (13) $ (796) Foreign currency translation adjustments (51) — — — (51) Unrealized gains — 56 — — 56 Reclassification adjustments to income — 51 — — 51 Income taxes — (23) — — (23) Balance as of March 31, 2022 $ (895) $ 145 $ — $ (13) $ (763) Reclassifications out of AOCI and into earnings, including related income tax expenses, were as follows (in millions): Three months ended March 31, Components of AOCI 2022 2021 Condensed Consolidated Cash flow hedges: Foreign currency contract gains (losses) $ 27 $ (1) Product sales Cross-currency swap contract losses (78) (132) Other (expense) income, net (51) (133) Income before income taxes 11 28 Provision for income taxes $ (40) $ (105) Net income |
Fair value measurement
Fair value measurement | 3 Months Ended |
Mar. 31, 2022 | |
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 different 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 Significant Fair value measurement as of March 31, 2022, using: Total Assets: Available-for-sale securities: U.S. Treasury notes $ 16 $ — $ — $ 16 U.S. Treasury bills — — — — Money market mutual funds 5,837 — — 5,837 Other short-term interest-bearing securities — — — — Equity securities 473 — 170 643 Derivatives: Foreign currency contracts — 235 — 235 Cross-currency swap contracts — 65 — 65 Interest rate swap contracts — — — — Total assets $ 6,326 $ 300 $ 170 $ 6,796 Liabilities: Derivatives: Foreign currency contracts $ — $ 51 $ — $ 51 Cross-currency swap contracts — 358 — 358 Interest rate swap contracts — 456 — 456 Contingent consideration obligations — — 330 330 Total liabilities $ — $ 865 $ 330 $ 1,195 Quoted prices in Significant Significant Fair value measurement as of December 31, 2021, using: Total Assets: Available-for-sale securities: U.S. Treasury notes $ 47 $ — $ — $ 47 U.S. Treasury bills 1,400 — — 1,400 Money market mutual funds 5,856 — — 5,856 Other short-term interest-bearing securities — 1 — 1 Equity securities 611 — 220 831 Derivatives: Foreign currency contracts — 183 — 183 Cross-currency swap contracts — 66 — 66 Interest rate swap contracts — 16 — 16 Total assets $ 7,914 $ 266 $ 220 $ 8,400 Liabilities: Derivatives: Foreign currency contracts $ — $ 39 $ — $ 39 Cross-currency swap contracts — 339 — 339 Interest rate swap contracts — 156 — 156 Contingent consideration obligations — — 342 342 Total liabilities $ — $ 534 $ 342 $ 876 Interest-bearing and equity securities The fair values of our U.S. Treasury securities, money market mutual funds and equity investments in publicly traded securities are based on quoted market prices in active markets, with no valuation adjustment. The fair value of equity securities without readily determinable fair values are initially valued at the transaction price and subsequently valued based upon a combination of market performance and publicly available market information for similar companies that have actively traded equity securities. 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. Contingent consideration obligations As a result of our business acquisitions, we have incurred contingent consideration obligations as discussed below. The contingent consideration obligations are recorded at their fair values by using probability-adjusted discounted cash flows, and we revalue these obligations each reporting period until the related contingencies have been resolved. The fair value measurements of these obligations are based on significant unobservable inputs related to licensing rights and product candidates acquired in business combinations, and they are reviewed quarterly by management in our R&D and commercial sales organizations. The inputs include, as applicable, estimated probabilities and the timing of achieving specified development, regulatory and commercial milestones as well as estimated annual sales. Significant changes that increase or decrease the probabilities of achieving the related development, regulatory and commercial events or that shorten or lengthen the time required to achieve such events or that increase or decrease estimated annual sales would result in corresponding increases or decreases in the fair values of the obligations, as applicable. Changes in the fair values of contingent consideration obligations are recognized in Other operating expenses in the Condensed Consolidated Statements of Income. Changes in the carrying amounts of contingent consideration obligations were as follows (in millions): Three Months Ended 2022 2021 Beginning balance $ 342 $ 33 Payments (2) (1) Net changes in valuations (10) 7 Ending balance $ 330 $ 39 As of March 31, 2022 and December 31, 2021, our contingent consideration obligations are primarily the result of our acquisition of Teneobio in October 2021, which obligates us to pay the former shareholders up to $1.6 billion upon achieving separate development and regulatory milestones with regard to various R&D programs. See Note 2, Acquisitions. 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, 2022 and December 31, 2021, the aggregate fair values of our borrowings were $38.4 billion and $37.9 billion, respectively, and the carrying values were $36.9 billion and $33.3 billion, respectively. During the three months ended March 31, 2022 and 2021, there were no material remeasurements to the fair values of assets and liabilities that are not measured at fair value on a recurring basis. Investment in BeiGene We estimated the fair value of our investment in BeiGene by using Level 1 inputs. As of March 31, 2022 and December 31, 2021, the fair values were $3.6 billion and $5.1 billion, and the carrying values were $2.6 billion and $2.8 billion, respectively. During the three months ended March 31, 2022 and 2021, there were no transfers of assets or liabilities between fair value measurement levels, and there were no material remeasurements to the fair values of assets and liabilities that are not measured at fair value on a recurring basis. |
Derivative instruments
Derivative instruments | 3 Months Ended |
Mar. 31, 2022 | |
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, 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 primarily associated 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 partially offset 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 up to a maximum of three years into the future; and at any given point in time, a higher percentage of nearer-term projected product sales are being hedged than in successive periods. As of March 31, 2022 and December 31, 2021, we had outstanding foreign currency forward contracts with aggregate notional amounts of $5.6 billion and $5.7 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 Other (expense) 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, 2022, were as follows (notional amounts in millions): Foreign currency U.S. dollars Hedged notes Notional amounts Interest rates Notional amounts Interest rates 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, 2022, 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 2022 2021 Foreign currency contracts $ 78 $ 183 Cross-currency swap contracts (22) (75) Total unrealized gains $ 56 $ 108 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 both March 31, 2022 and December 31, 2021, we had interest rate swap contracts with aggregate notional amounts of $6.7 billion that hedge certain portions of our long-term debt issuances. 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, 2022 December 31, 2021 March 31, 2022 December 31, 2021 Current portion of long-term debt $ 83 $ 85 $ 83 $ 85 Long-term debt $ 6,395 $ 6,729 $ (136) $ 199 ____________ (1) Current portion of long-term debt includes $83 million and $85 million of carrying value with discontinued hedging relationships as of March 31, 2022 and December 31, 2021, respectively. Long-term debt includes $419 million and $440 million of carrying value with discontinued hedging relationships as of March 31, 2022 and December 31, 2021, respectively. (2) Current portion of long-term debt includes $83 million and $85 million of hedging adjustments on discontinued hedging relationships as of March 31, 2022 and December 31, 2021, respectively. Long-term debt includes $319 million and $340 million of hedging adjustments on discontinued hedging relationships as of March 31, 2022 and December 31, 2021, 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, 2022 Product sales Other (expense) income, net Interest expense, net Total amounts recorded in income and (expense) line items presented in the Condensed Consolidated Statements of Income $ 5,731 $ (530) $ (295) The effects of cash flow and fair value hedging: Gains (losses) on cash flow hedging relationships reclassified out of AOCI: Foreign currency contracts $ 27 $ — $ — Cross-currency swap contracts $ — $ (78) $ — Gains (losses) on fair value hedging relationships—interest rate swap agreements: Hedged items (1) $ — $ — $ 337 Derivatives designated as hedging instruments $ — $ — $ (315) Three months ended March 31, 2021 Product sales Other (expense) income, net Interest expense, net Total amounts recorded in income and (expense) line items presented in the Condensed Consolidated Statements of Income $ 5,592 $ 13 $ (285) The effects of cash flow and fair value hedging: Losses on cash flow hedging relationships reclassified out of AOCI: Foreign currency contracts $ (1) $ — $ — Cross-currency swap contracts $ — $ (132) $ — Gains (losses) on fair value hedging relationships—interest rate swap agreements: Hedged items (1) $ — $ — $ 175 Derivatives designated as hedging instruments $ — $ — $ (152) __________ (1) Gains on hedged items do not exactly offset 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 when 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, 2022, we expected to reclassify $120 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, 2022 and December 31, 2021, the total notional amounts of these foreign currency forward contracts were $655 million and $680 million, 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, 2022 and 2021. The fair values of derivatives included in the Condensed Consolidated Balance Sheets were as follows (in millions): Derivative assets Derivative liabilities March 31, 2022 Condensed Consolidated Fair values Condensed Consolidated Fair values Derivatives designated as hedging instruments: Foreign currency contracts Other current assets/ Other noncurrent assets $ 235 Accrued liabilities/ Other noncurrent liabilities $ 51 Cross-currency swap contracts Other current assets/ Other noncurrent assets 65 Accrued liabilities/ Other noncurrent liabilities 358 Interest rate swap contracts Other current assets/ Other noncurrent assets — Accrued liabilities/ Other noncurrent liabilities 456 Total derivatives designated as hedging instruments $ 300 $ 865 Derivative assets Derivative liabilities December 31, 2021 Condensed Consolidated Fair values Condensed Consolidated Fair values Derivatives designated as hedging instruments: Foreign currency contracts Other current assets/ Other noncurrent assets $ 183 Accrued liabilities/ Other noncurrent liabilities $ 39 Cross-currency swap contracts Other current assets/ Other noncurrent assets 66 Accrued liabilities/ Other noncurrent liabilities 339 Interest rate swap contracts Other current assets/ Other noncurrent assets 16 Accrued liabilities/ Other noncurrent liabilities 156 Total derivatives designated as hedging instruments $ 265 $ 534 Our derivative contracts that were in liability positions as of March 31, 2022, 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, 2022 | |
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, 2021, 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; and 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, 2021. 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; and 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, 2021, 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; and 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, 2021, 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: Repatha Patent Litigation Amgen Inc., et al. v. Sanofi, et al. On March 28, 2022, Amgen filed a reply brief in support of its petition for certiorari to the U.S. Supreme Court. On April 18, 2022, the Supreme Court requested that the Office of the Solicitor General of the United States submit a brief providing the government’s view on the issues raised by Amgen’s petition. Patent Disputes in the International Region On March 23, 2022, Amgen filed counterclaims alleging that PRALUENT ® infringes Amgen’s European Patent 2,641,917 (the ‘917 Patent). A European Patent Office (EPO) opposition to the ‘917 Patent, filed by Sanofi on February 5, 2021, is pending, and the hearing before the EPO’s Opposition Division is scheduled for February 21, 2023. NEUPOGEN (filgrastim)/Neulasta Patent Litigation Amgen Inc., et al. v. Hospira Inc. et al. On March 18, 2022, the parties filed a stipulation of dismissal, and the U.S. District Court for the District of Delaware (the Delaware District Court) dismissed the case on March 21, 2022. Patent Trial and Appeal Board (PTAB) Challenge Apotex PTAB Challenge On April 4, 2022, Amgen’s appeal of the PTAB’s decision, holding all claims of Amgen’s U.S. Patent No. 8,952,138 (the ‘138 Patent) unpatentable, was submitted to the U.S. Court of Appeals for the Federal Circuit (the Federal Circuit Court) for determination on the briefs without oral argument. On April 14, 2022, the Federal Circuit Court held that the PTAB misconstrued the patent claims and reversed the PTAB’s decision because Apotex failed to prove the invention of the ‘138 Patent unpatentable. P fizer PTAB Challenge O n March 18, 2022, the parties filed a joint motion to terminate the inter partes review proceeding at the U.S. Patent and Trademark Office of U.S. Patent No. 8,273,707. On April 20, 2022, the PTAB granted the motion and terminated the proceeding. Antitrust Class Action Sensipar Antitrust Class Actions On March 11, 2022, the Delaware District Court granted defendants’ (including Amgen’s) motion to dismiss except as to the reverse payment claim and various state law claims from ten of the states in which plaintiffs reside. U.S. Tax Litigation Amgen Inc. & Subsidiaries v. Commissioner of Internal Revenue See Note 4, Income taxes, for discussion of the IRS tax dispute and the Company’s petition in the U.S. Tax Court. |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
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, 2022 and 2021, 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, 2021. |
Principles of consolidation | Principles of consolidation The condensed consolidated financial statements include the accounts of Amgen as well as its majority-owned subsidiaries. In determining whether we are the primary beneficiary of a variable interest entity, we consider whether we have both the power to direct activities of the entity that most significantly impact the entity’s economic performance and the obligation to absorb losses of or the right to receive benefits from the entity that could potentially be significant to that entity. We do not have any significant interests in any variable interest entities of which we are the primary beneficiary. 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 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 $8.9 billion and $8.8 billion as of March 31, 2022 and December 31, 2021, respectively. |
Other recent accounting pronouncements | Recent accounting pronouncements In March 2020, the FASB issued a new accounting standard to ease the financial reporting burdens caused by the expected market transition from 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 is permitted to 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. In January 2021, the FASB issued a new accounting standard that expanded the scope of the original March 2020 standard to include derivative instruments on discounting transactions. We do not expect the two standards to have a material impact on our condensed consolidated financial statements. In November 2021, the FASB issued a new accounting standard around the recognition and measurement of contract assets and contract liabilities from revenue contracts with customers acquired in a business combination. The new standard clarifies that contract assets and contract liabilities acquired in a business combination from an acquiree should initially be recognized by applying revenue recognition principles and not at fair value. The standard is effective for interim and annual periods beginning on January 1, 2023, and early adoption is permitted. The impact of this standard will depend on the facts and circumstances of future transactions. |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The following table summarizes the total consideration and allocated acquisition date fair values of assets acquired and liabilities assumed, inclusive of measurement period adjustments (in millions): Amounts Cash purchase price $ 993 Contingent consideration 299 Total consideration $ 1,292 Cash and cash equivalents $ 100 IPR&D 991 Finite-lived intangible asset – R&D technology rights 115 Finite-lived intangible assets – licensing rights 41 Goodwill 273 Other assets, net 16 Deferred tax liability (244) Total assets acquired, net $ 1,292 |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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, 2022 2021 U.S. ROW Total U.S. ROW Total Enbrel $ 843 $ 19 $ 862 $ 894 $ 30 $ 924 Prolia 582 270 852 501 257 758 XGEVA 368 134 502 334 134 468 Otezla 350 101 451 366 110 476 Aranesp 137 221 358 125 230 355 Neulasta 304 44 348 421 61 482 Repatha 165 164 329 139 147 286 KYPROLIS 196 91 287 159 92 251 Nplate 156 110 266 112 115 227 Other products 936 540 1,476 852 513 1,365 Total product sales (1) $ 4,037 $ 1,694 5,731 $ 3,903 $ 1,689 5,592 Other revenues 507 309 Total revenues $ 6,238 $ 5,901 ____________ |
Earnings per share (Tables)
Earnings per share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 2022 2021 Income (Numerator): Net income for basic and diluted EPS $ 1,476 $ 1,646 Shares (Denominator): Weighted-average shares for basic EPS 548 577 Effect of dilutive securities 3 4 Weighted-average shares for diluted EPS 551 581 Basic EPS $ 2.69 $ 2.85 Diluted EPS $ 2.68 $ 2.83 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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, 2022 Amortized Gross Gross Fair U.S. Treasury notes $ 16 $ — $ — $ 16 U.S. Treasury bills — — — — Money market mutual funds 5,837 — — 5,837 Other short-term interest-bearing securities — — — — Total interest-bearing securities $ 5,853 $ — $ — $ 5,853 Types of securities as of December 31, 2021 Amortized Gross Gross Fair U.S. Treasury notes $ 47 $ — $ — $ 47 U.S. Treasury bills 1,400 — — 1,400 Money market mutual funds 5,856 — — 5,856 Other short-term interest-bearing securities 1 — — 1 Total interest-bearing securities $ 7,304 $ — $ — $ 7,304 |
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, 2022 December 31, 2021 Cash and cash equivalents $ 5,837 $ 7,256 Marketable securities 16 48 Total interest-bearing securities $ 5,853 $ 7,304 |
Fair values of available-for-sale interest-bearing security investments by contractual maturity | The fair values of available-for-sale investments by contractual maturity were as follows (in millions): Contractual maturities March 31, 2022 December 31, 2021 Maturing in one year or less $ 5,853 $ 7,304 Total available-for-sale investments $ 5,853 $ 7,304 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following (in millions): March 31, 2022 December 31, 2021 Raw materials $ 750 $ 647 Work in process 2,582 2,367 Finished goods 1,079 1,072 Total inventories $ 4,411 $ 4,086 |
Goodwill and other intangible_2
Goodwill and other intangible assets (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 $ 14,890 Goodwill resulting from acquisition of a business (1) 22 Currency translation adjustment (15) Ending balance $ 14,897 ____________ (1) Composed of adjustments to goodwill resulting from changes to the acquisition date fair values of net assets acquired in the acquisition of Teneobio (see Note 2, Acquisitions). |
Schedule of identifiable intangible assets | Other intangible assets consisted of the following (in millions): March 31, 2022 December 31, 2021 Gross Accumulated Other intangible Gross Accumulated Other intangible Finite-lived intangible assets: Developed-product-technology rights $ 25,550 $ (13,316) $ 12,234 $ 25,561 $ (12,769) $ 12,792 Licensing rights 3,864 (3,013) 851 3,807 (2,973) 834 Marketing-related rights 1,350 (1,129) 221 1,354 (1,112) 242 Research and development technology rights 1,386 (1,146) 240 1,377 (1,133) 244 Total finite-lived intangible assets 32,150 (18,604) 13,546 32,099 (17,987) 14,112 Indefinite-lived intangible assets: In-process research and development 1,021 — 1,021 1,070 — 1,070 Total other intangible assets $ 33,171 $ (18,604) $ 14,567 $ 33,169 $ (17,987) $ 15,182 |
Financing arrangements (Tables)
Financing arrangements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of borrowings | Our borrowings consisted of the following (in millions): March 31, 2022 December 31, 2021 0.41% CHF700 million bonds due 2023 (0.41% 2023 Swiss franc Bonds) $ 759 $ 767 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) 500 500 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) 830 853 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) 624 643 2.20% notes due 2027 (2.20% 2027 Notes) 1,750 1,750 3.20% notes due 2027 (3.20% 2027 Notes) 1,000 1,000 1.65% notes due 2028 (1.65% 2028 Notes) 1,250 1,250 3.00% notes due 2029 (3.00% 2029 Notes) 750 — 4.00% £700 million notes due 2029 (4.00% 2029 pound sterling Notes) 920 947 2.45% notes due 2030 (2.45% 2030 Notes) 1,250 1,250 2.30% notes due 2031 (2.30% 2031 Notes) 1,250 1,250 2.00% notes due 2032 (2.00% 2032 Notes) 1,250 1,250 3.35% notes due 2032 (3.35% 2032 Notes) 1,000 — 6.375% notes due 2037 (6.375% 2037 Notes) 478 478 6.90% notes due 2038 (6.90% 2038 Notes) 254 254 6.40% notes due 2039 (6.40% 2039 Notes) 333 333 3.15% notes due 2040 (3.15% 2040 Notes) 2,000 2,000 5.75% notes due 2040 (5.75% 2040 Notes) 373 373 2.80% notes due 2041 (2.80% 2041 Notes) 1,150 1,150 4.95% notes due 2041 (4.95% 2041 Notes) 600 600 5.15% notes due 2041 (5.15% 2041 Notes) 729 729 5.65% notes due 2042 (5.65% 2042 Notes) 415 415 5.375% notes due 2043 (5.375% 2043 Notes) 185 185 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) 2,250 2,250 4.663% notes due 2051 (4.663% 2051 Notes) 3,541 3,541 3.00% notes due 2052 (3.00% 2052 Notes) 1,350 1,350 4.20% notes due 2052 (4.20% 2052 Notes) 1,000 — 2.77% notes due 2053 (2.77% 2053 Notes) 940 940 4.40% notes due 2062 (4.40% 2062 Notes) 1,250 — Other notes due 2097 100 100 Unamortized bond discounts, premiums and issuance costs, net (1,253) (1,213) Fair value adjustments (53) 284 Other 14 15 Total carrying value of debt 36,854 33,309 Less current portion (844) (87) Total long-term debt $ 36,010 $ 33,222 |
Stockholders' equity (Tables)
Stockholders' equity (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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): 2022 2021 Shares Dollars Shares Dollars First quarter 24.6 $ 5,410 3.7 $ 865 |
Components of accumulated other comprehensive income | The components of AOCI were as follows (in millions): Foreign Cash flow Available-for-sale Other AOCI Balance as of December 31, 2021 $ (844) $ 61 $ — $ (13) $ (796) Foreign currency translation adjustments (51) — — — (51) Unrealized gains — 56 — — 56 Reclassification adjustments to income — 51 — — 51 Income taxes — (23) — — (23) Balance as of March 31, 2022 $ (895) $ 145 $ — $ (13) $ (763) |
Reclassifications out of accumulated other comprehensive income | Reclassifications out of AOCI and into earnings, including related income tax expenses, were as follows (in millions): Three months ended March 31, Components of AOCI 2022 2021 Condensed Consolidated Cash flow hedges: Foreign currency contract gains (losses) $ 27 $ (1) Product sales Cross-currency swap contract losses (78) (132) Other (expense) income, net (51) (133) Income before income taxes 11 28 Provision for income taxes $ (40) $ (105) Net income |
Fair value measurement (Tables)
Fair value measurement (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 Significant Fair value measurement as of March 31, 2022, using: Total Assets: Available-for-sale securities: U.S. Treasury notes $ 16 $ — $ — $ 16 U.S. Treasury bills — — — — Money market mutual funds 5,837 — — 5,837 Other short-term interest-bearing securities — — — — Equity securities 473 — 170 643 Derivatives: Foreign currency contracts — 235 — 235 Cross-currency swap contracts — 65 — 65 Interest rate swap contracts — — — — Total assets $ 6,326 $ 300 $ 170 $ 6,796 Liabilities: Derivatives: Foreign currency contracts $ — $ 51 $ — $ 51 Cross-currency swap contracts — 358 — 358 Interest rate swap contracts — 456 — 456 Contingent consideration obligations — — 330 330 Total liabilities $ — $ 865 $ 330 $ 1,195 Quoted prices in Significant Significant Fair value measurement as of December 31, 2021, using: Total Assets: Available-for-sale securities: U.S. Treasury notes $ 47 $ — $ — $ 47 U.S. Treasury bills 1,400 — — 1,400 Money market mutual funds 5,856 — — 5,856 Other short-term interest-bearing securities — 1 — 1 Equity securities 611 — 220 831 Derivatives: Foreign currency contracts — 183 — 183 Cross-currency swap contracts — 66 — 66 Interest rate swap contracts — 16 — 16 Total assets $ 7,914 $ 266 $ 220 $ 8,400 Liabilities: Derivatives: Foreign currency contracts $ — $ 39 $ — $ 39 Cross-currency swap contracts — 339 — 339 Interest rate swap contracts — 156 — 156 Contingent consideration obligations — — 342 342 Total liabilities $ — $ 534 $ 342 $ 876 |
Schedule of Business Acquisitions by Acquisition, Contingent Consideration | Changes in the carrying amounts of contingent consideration obligations were as follows (in millions): Three Months Ended 2022 2021 Beginning balance $ 342 $ 33 Payments (2) (1) Net changes in valuations (10) 7 Ending balance $ 330 $ 39 |
Derivative instruments (Tables)
Derivative instruments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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, 2022, were as follows (notional amounts in millions): Foreign currency U.S. dollars Hedged notes Notional amounts Interest rates Notional amounts Interest rates 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 2022 2021 Foreign currency contracts $ 78 $ 183 Cross-currency swap contracts (22) (75) Total unrealized gains $ 56 $ 108 |
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, 2022 December 31, 2021 March 31, 2022 December 31, 2021 Current portion of long-term debt $ 83 $ 85 $ 83 $ 85 Long-term debt $ 6,395 $ 6,729 $ (136) $ 199 ____________ (1) Current portion of long-term debt includes $83 million and $85 million of carrying value with discontinued hedging relationships as of March 31, 2022 and December 31, 2021, respectively. Long-term debt includes $419 million and $440 million of carrying value with discontinued hedging relationships as of March 31, 2022 and December 31, 2021, respectively. (2) Current portion of long-term debt includes $83 million and $85 million of hedging adjustments on discontinued hedging relationships as of March 31, 2022 and December 31, 2021, respectively. Long-term debt includes $319 million and $340 million of hedging adjustments on discontinued hedging relationships as of March 31, 2022 and December 31, 2021, 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, 2022 Product sales Other (expense) income, net Interest expense, net Total amounts recorded in income and (expense) line items presented in the Condensed Consolidated Statements of Income $ 5,731 $ (530) $ (295) The effects of cash flow and fair value hedging: Gains (losses) on cash flow hedging relationships reclassified out of AOCI: Foreign currency contracts $ 27 $ — $ — Cross-currency swap contracts $ — $ (78) $ — Gains (losses) on fair value hedging relationships—interest rate swap agreements: Hedged items (1) $ — $ — $ 337 Derivatives designated as hedging instruments $ — $ — $ (315) Three months ended March 31, 2021 Product sales Other (expense) income, net Interest expense, net Total amounts recorded in income and (expense) line items presented in the Condensed Consolidated Statements of Income $ 5,592 $ 13 $ (285) The effects of cash flow and fair value hedging: Losses on cash flow hedging relationships reclassified out of AOCI: Foreign currency contracts $ (1) $ — $ — Cross-currency swap contracts $ — $ (132) $ — Gains (losses) on fair value hedging relationships—interest rate swap agreements: Hedged items (1) $ — $ — $ 175 Derivatives designated as hedging instruments $ — $ — $ (152) __________ (1) Gains on hedged items do not exactly offset 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 when 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, 2022 Condensed Consolidated Fair values Condensed Consolidated Fair values Derivatives designated as hedging instruments: Foreign currency contracts Other current assets/ Other noncurrent assets $ 235 Accrued liabilities/ Other noncurrent liabilities $ 51 Cross-currency swap contracts Other current assets/ Other noncurrent assets 65 Accrued liabilities/ Other noncurrent liabilities 358 Interest rate swap contracts Other current assets/ Other noncurrent assets — Accrued liabilities/ Other noncurrent liabilities 456 Total derivatives designated as hedging instruments $ 300 $ 865 Derivative assets Derivative liabilities December 31, 2021 Condensed Consolidated Fair values Condensed Consolidated Fair values Derivatives designated as hedging instruments: Foreign currency contracts Other current assets/ Other noncurrent assets $ 183 Accrued liabilities/ Other noncurrent liabilities $ 39 Cross-currency swap contracts Other current assets/ Other noncurrent assets 66 Accrued liabilities/ Other noncurrent liabilities 339 Interest rate swap contracts Other current assets/ Other noncurrent assets 16 Accrued liabilities/ Other noncurrent liabilities 156 Total derivatives designated as hedging instruments $ 265 $ 534 |
Summary of significant accoun_3
Summary of significant accounting policies (Details) $ in Billions | 3 Months Ended | |
Mar. 31, 2022USD ($)segment | Dec. 31, 2021USD ($) | |
Accounting Policies [Abstract] | ||
Number of operating segments | segment | 1 | |
Accumulated depreciation and amortization on property, plant and equipment | $ | $ 8.9 | $ 8.8 |
Acquisitions - Aggregate Consid
Acquisitions - Aggregate Consideration Paid (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | ||
Goodwill | $ 14,897 | $ 14,890 |
Teneobio | ||
Business Acquisition [Line Items] | ||
Cash paid | 993 | |
Contingent consideration obligation for acquisition | 299 | |
Total consideration | 1,292 | |
Fair value of assets acquired, cash | 100 | |
Goodwill | 273 | |
Other assets, net | 16 | |
Deferred tax liability | (244) | |
Total assets acquired, net | 1,292 | |
Teneobio | R & D Technology rights | ||
Business Acquisition [Line Items] | ||
Fair value of assets acquired, licensing rights | 115 | |
Teneobio | Licensing rights | ||
Business Acquisition [Line Items] | ||
Fair value of assets acquired, licensing rights | 41 | |
Teneobio | In-process Research and Development | ||
Business Acquisition [Line Items] | ||
IPR&D | $ 991 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | ||
Net increase in goodwill | $ 22 | |
Goodwill | 14,897 | $ 14,890 |
Teneobio | ||
Business Acquisition [Line Items] | ||
Net increase in goodwill | 22 | |
Cash paid | 993 | |
Maximum additional consideration due contingent on certain milestones | 1,600 | |
Contingent consideration obligation for acquisition | 299 | |
Deferred tax liability | 244 | |
Goodwill | 273 | |
Teneobio | R & D Technology rights | ||
Business Acquisition [Line Items] | ||
Value of intangible assets acquired | $ 115 | |
Weighted average period of amortization | 10 years | |
Teneobio | Licensing rights | ||
Business Acquisition [Line Items] | ||
Value of intangible assets acquired | $ 41 | |
Teneobio | In-process Research and Development | ||
Business Acquisition [Line Items] | ||
Acquired in-process research and development | 991 | |
Teneobio | In-process Research and Development | AMG 340 | ||
Business Acquisition [Line Items] | ||
Acquired in-process research and development | $ 784 |
Revenues (Details)
Revenues (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2022USD ($)segment | Mar. 31, 2021USD ($) | |
Revenue from Contract with Customer [Abstract] | ||
Number of operating segments | segment | 1 | |
Revenue from External Customer [Line Items] | ||
Total revenues | $ 6,238 | $ 5,901 |
Product sales [Member] | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 5,731 | 5,592 |
Product sales [Member] | US [Member] | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 4,037 | 3,903 |
Product sales [Member] | ROW [Member] | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 1,694 | 1,689 |
Enbrel® (etanercept) [Member] | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 862 | 924 |
Enbrel® (etanercept) [Member] | US [Member] | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 843 | 894 |
Enbrel® (etanercept) [Member] | ROW [Member] | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 19 | 30 |
Prolia® (denosumab) [Member] | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 852 | 758 |
Prolia® (denosumab) [Member] | US [Member] | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 582 | 501 |
Prolia® (denosumab) [Member] | ROW [Member] | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 270 | 257 |
XGEVA® (denosumab) [Member] | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 502 | 468 |
XGEVA® (denosumab) [Member] | US [Member] | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 368 | 334 |
XGEVA® (denosumab) [Member] | ROW [Member] | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 134 | 134 |
Otezla (apremilast) [Member] | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 451 | 476 |
Otezla (apremilast) [Member] | US [Member] | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 350 | 366 |
Otezla (apremilast) [Member] | ROW [Member] | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 101 | 110 |
Aranesp® (darbepoetin alfa) [Member] | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 358 | 355 |
Aranesp® (darbepoetin alfa) [Member] | US [Member] | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 137 | 125 |
Aranesp® (darbepoetin alfa) [Member] | ROW [Member] | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 221 | 230 |
Neulasta® (pegfilgrastim) [Member] | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 348 | 482 |
Neulasta® (pegfilgrastim) [Member] | US [Member] | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 304 | 421 |
Neulasta® (pegfilgrastim) [Member] | ROW [Member] | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 44 | 61 |
Repatha (evolocumab) [Member] | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 329 | 286 |
Repatha (evolocumab) [Member] | US [Member] | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 165 | 139 |
Repatha (evolocumab) [Member] | ROW [Member] | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 164 | 147 |
KYPROLIS® (carfilzomib) [Member] | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 287 | 251 |
KYPROLIS® (carfilzomib) [Member] | US [Member] | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 196 | 159 |
KYPROLIS® (carfilzomib) [Member] | ROW [Member] | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 91 | 92 |
Nplate [Member] | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 266 | 227 |
Nplate [Member] | US [Member] | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 156 | 112 |
Nplate [Member] | ROW [Member] | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 110 | 115 |
Other products [Member] | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 1,476 | 1,365 |
Other products [Member] | US [Member] | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 936 | 852 |
Other products [Member] | ROW [Member] | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 540 | 513 |
Other revenues [Member] | ||
Revenue from External Customer [Line Items] | ||
Total revenues | $ 507 | $ 309 |
Income taxes (Details)
Income taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Apr. 28, 2022 | May 31, 2021 | |
Income Tax Examination [Line Items] | ||||
Effective income tax rate | 11.90% | 11.40% | ||
Increase in unrecognized tax benefits resulting from tax positions taken during the current period | $ 45 | |||
Domestic Tax Authority | ||||
Income Tax Examination [Line Items] | ||||
Proposed additional income tax | $ 3,600 | |||
Repatriation tax on proposed additional tax | $ 900 | |||
Domestic Tax Authority | Subsequent Event [Member] | ||||
Income Tax Examination [Line Items] | ||||
Proposed additional income tax 2013-2015 | $ 5,100 | |||
Penalties on proposed additional income tax 2013-2015 | 2,000 | |||
Repatriation tax on proposed additional tax 2013-2015 | $ 2,200 |
Earnings per share (Details)
Earnings per share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income (Numerator): | ||
Net income for basic and diluted EPS | $ 1,476 | $ 1,646 |
Shares (Denominator): | ||
Weighted-average shares for basic EPS (in shares) | 548 | 577 |
Effect of dilutive securities (in shares) | 3 | 4 |
Weighted-average shares for diluted EPS (in shares) | 551 | 581 |
Basic EPS (in usd per share) | $ 2.69 | $ 2.85 |
Diluted EPS (in usd per share) | $ 2.68 | $ 2.83 |
Investments (Details)
Investments (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | $ 5,853 | $ 7,304 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Fair values | 5,853 | 7,304 |
U.S. Treasury notes [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 16 | 47 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Fair values | 16 | 47 |
U.S. Treasury bills [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 0 | 1,400 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Fair values | 0 | 1,400 |
Money market mutual funds [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 5,837 | 5,856 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Fair values | 5,837 | 5,856 |
Other short-term interest-bearing securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 0 | 1 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Fair values | $ 0 | $ 1 |
Investments (Fair Values by Cla
Investments (Fair Values by Classification) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Fair values of available-for-sale investments by classification in the Consolidated Balance Sheets | ||
Marketable securities | $ 16 | $ 48 |
Total interest-bearing securities | 5,853 | 7,304 |
Available-for-sale investments [Member] | ||
Fair values of available-for-sale investments by classification in the Consolidated Balance Sheets | ||
Cash and cash equivalents | 5,837 | 7,256 |
Marketable securities | 16 | 48 |
Total interest-bearing securities | $ 5,853 | $ 7,304 |
Investments (Available-for-sale
Investments (Available-for-sale Investments) (Details Textual) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Investments, Debt and Equity Securities [Abstract] | ||
Cash | $ 691 | $ 733 |
Investments (Fair Values by Con
Investments (Fair Values by Contractual Maturity) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Investments, Debt and Equity Securities [Abstract] | ||
Maturing in one year or less | $ 5,853 | $ 7,304 |
Total interest-bearing securities | $ 5,853 | $ 7,304 |
Investments (Equity Securities)
Investments (Equity Securities) (Details Textual) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Debt Securities, Available-for-sale [Line Items] | |||
Equity securities | $ 643 | $ 831 | |
Equity Securities, FV-NI, Unrealized Gain (Loss) | (170) | $ (56) | |
Equity securities without readily determinable fair value | 261 | 262 | |
Income (Loss) from Equity Method Investments | (305) | $ 85 | |
Fair Value, Inputs, Level 1 [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Equity securities | $ 473 | $ 611 |
Investments Investments (Limite
Investments Investments (Limited Partnership Investments) (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 |
Net Investment Income [Line Items] | ||||
Adjustments for equity method investments | $ (305) | $ 85 | ||
Investment Company, Financial Support to Investee Contractually Required, Amount | 182 | |||
Limited Partnership [Member] | Fair Value Measured at Net Asset Value Per Share [Member] | ||||
Net Investment Income [Line Items] | ||||
Alternative investments | 403 | $ 573 | ||
Net gains (losses) from limited partnership investments | (160) | 208 | ||
BeiGene [Member] | ||||
Net Investment Income [Line Items] | ||||
Carrying value of equity method investment | $ 2,600 | $ 2,800 | ||
Ownership percentage | 18.40% | 18.40% | ||
Equity Method Investments,Quoted Market Price | $ 3,600 | $ 5,100 | ||
Adjustments for equity method investments | (108) | (97) | ||
Equity Method Investment, Amortization of Difference Between Carrying Amount and Underlying Equity | $ 47 | $ 42 | ||
Neumora Therapeutics, Inc. [Member] | ||||
Net Investment Income [Line Items] | ||||
Equity Method Investment, Aggregate Cost | $ 257 | |||
Ownership percentage | 25.90% | 25.80% | 25.90% | |
Equity Method Investments, Fair Value Disclosure | $ 170 | $ 220 | ||
Equity method investment, change in carrying value | $ 50 | |||
Payments to Acquire Equity Method Investments | $ 100 | |||
Noncash or Part Noncash Acquisition, Investments Acquired | $ 157 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 750 | $ 647 |
Work in process | 2,582 | 2,367 |
Finished goods | 1,079 | 1,072 |
Total inventories | $ 4,411 | $ 4,086 |
Goodwill and other intangible_3
Goodwill and other intangible assets (Goodwill Roll Forward) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 14,890 |
Net increase in goodwill | 22 |
Currency translation adjustment | (15) |
Ending balance | $ 14,897 |
Goodwill and other intangible_4
Goodwill and other intangible assets (Identifiable Intangible Assets) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amounts | $ 32,150 | $ 32,099 |
Accumulated amortization | (18,604) | (17,987) |
Other intangible assets, net | 13,546 | 14,112 |
Gross carrying amount | 33,171 | 33,169 |
Accumulated amortization | (18,604) | (17,987) |
Intangible assets, net | 14,567 | 15,182 |
In-process Research and Development | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 1,021 | 1,070 |
Developed-Product-Technology Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amounts | 25,550 | 25,561 |
Accumulated amortization | (13,316) | (12,769) |
Other intangible assets, net | 12,234 | 12,792 |
Licensing rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amounts | 3,864 | 3,807 |
Accumulated amortization | (3,013) | (2,973) |
Other intangible assets, net | 851 | 834 |
Marketing-Related Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amounts | 1,350 | 1,354 |
Accumulated amortization | (1,129) | (1,112) |
Other intangible assets, net | 221 | 242 |
Research and Development Technology Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amounts | 1,386 | 1,377 |
Accumulated amortization | (1,146) | (1,133) |
Other intangible assets, net | $ 240 | $ 244 |
Goodwill and other intangible_5
Goodwill and other intangible assets (Details Textual) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization charges associated with finite-lived intangible assets | $ 637 | $ 654 |
Total estimated amortization of finite-lived intangible assets for the nine months ending December 31, 2022 | 1,900 | |
Total estimated amortization of finite-lived intangible assets for 2023 | 2,500 | |
Total estimated amortization of finite-lived intangible assets for 2024 | 2,500 | |
Total estimated amortization of finite-lived intangible assets for 2025 | 2,400 | |
Total estimated amortization of finite-lived intangible assets for 2026 | 1,700 | |
Total estimated amortization of finite-lived intangible assets for 2027 | $ 1,800 |
Financing arrangements (Princip
Financing arrangements (Principal Amounts and Carrying Value of Long-term Borrowings) (Details) $ in Millions | 3 Months Ended | ||||
Mar. 31, 2022USD ($) | Mar. 31, 2022CHF (SFr) | Mar. 31, 2022EUR (€) | Mar. 31, 2022GBP (£) | Dec. 31, 2021USD ($) | |
Debt Instrument [Line Items] | |||||
Unamortized bond discounts, premiums and issuance costs, net | $ (1,253) | $ (1,213) | |||
Fair value adjustments | (53) | 284 | |||
Other | 14 | 15 | |||
Total carrying value of debt | 36,854 | 33,309 | |||
Less current portion | (844) | (87) | |||
Total long-term debt | 36,010 | 33,222 | |||
Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 4,000 | ||||
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 | $ 759 | 767 | |||
Face amount | SFr | SFr 700,000,000 | ||||
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 | |||
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 | |||
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 | 500 | |||
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 | |||
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 | $ 830 | 853 | |||
Face amount | € | € 750,000,000 | ||||
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 | |||
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 | $ 624 | 643 | |||
Face amount | £ | £ 475,000,000 | ||||
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 | $ 1,750 | 1,750 | |||
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 | |||
Notes [Member] | 1.65% notes due 2028 (1.65% 2028 Notes) [Member} | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 1.65% | 1.65% | 1.65% | 1.65% | |
Long-term debt, gross | $ 1,250 | 1,250 | |||
Notes [Member] | 3.00% 2029 Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 3.00% | 3.00% | 3.00% | 3.00% | |
Long-term debt, gross | $ 750 | 0 | |||
Face amount | $ 750 | ||||
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 | $ 920 | 947 | |||
Face amount | £ | £ 700,000,000 | ||||
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 | 1,250 | |||
Notes [Member] | 2.30% notes due 2031 (2.30% 2031 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 2.30% | 2.30% | 2.30% | 2.30% | |
Long-term debt, gross | $ 1,250 | 1,250 | |||
Notes [Member] | 2.00% notes due 2032 (2.00% 2032 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 2.00% | 2.00% | 2.00% | 2.00% | |
Long-term debt, gross | $ 1,250 | 1,250 | |||
Notes [Member] | 3.35% 2032 Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 3.35% | 3.35% | 3.35% | 3.35% | |
Long-term debt, gross | $ 1,000 | ||||
Face amount | $ 1,000 | ||||
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 | $ 478 | 478 | |||
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 | $ 254 | 254 | |||
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 | $ 333 | 333 | |||
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 | $ 2,000 | 2,000 | |||
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 | $ 373 | 373 | |||
Notes [Member] | 2.80% notes due 2041 (2.80% 2041 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 1,150 | 1,150 | |||
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 | |||
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 | $ 729 | 729 | |||
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 | $ 415 | 415 | |||
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 | $ 185 | 185 | |||
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 | |||
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 | |||
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 | $ 2,250 | 2,250 | |||
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 | |||
Notes [Member] | 3.00% notes due 2052 (3.00% 2052 Notes) | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 3.00% | 3.00% | 3.00% | 3.00% | |
Long-term debt, gross | $ 1,350 | 1,350 | |||
Notes [Member] | 4.20% 2052 Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 4.20% | 4.20% | 4.20% | 4.20% | |
Long-term debt, gross | $ 1,000 | 0 | |||
Face amount | $ 1,000 | ||||
Percentage of Principal Amount of Notes that may be Paid Upon Occurrence of Change in Control Triggering Event | 101.00% | ||||
Notes [Member] | Two Point Seven Seven Percent Notes Due Two Zero Five Three | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 2.77% | 2.77% | 2.77% | 2.77% | |
Long-term debt, gross | $ 940 | 940 | |||
Notes [Member] | 4.40% 2062 Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 4.40% | 4.40% | 4.40% | 4.40% | |
Long-term debt, gross | $ 1,250 | 0 | |||
Face amount | $ 1,250 | ||||
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 | |||
Notes [Member] | 2.80% 2041 Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 2.80% | 2.80% | 2.80% | 2.80% |
Financing arrangements (Details
Financing arrangements (Details Textual) $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Notes [Member] | |
Debt Instrument [Line Items] | |
Face amount | $ 4,000 |
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] | Two Point Seven Seven Percent Notes Due Two Zero Five Three | |
Debt Instrument [Line Items] | |
Interest rate, stated percentage | 2.77% |
Effective interest rate | 5.20% |
Notes [Member] | 3.00% 2029 Notes [Member] | |
Debt Instrument [Line Items] | |
Interest rate, stated percentage | 3.00% |
Face amount | $ 750 |
Percentage of Principal Amount of Notes that may be Paid Upon Occurrence of Change in Control Triggering Event | 101.00% |
Notes [Member] | 3.35% 2032 Notes [Member] | |
Debt Instrument [Line Items] | |
Interest rate, stated percentage | 3.35% |
Face amount | $ 1,000 |
Percentage of Principal Amount of Notes that may be Paid Upon Occurrence of Change in Control Triggering Event | 101.00% |
Notes [Member] | 4.20% 2052 Notes [Member] | |
Debt Instrument [Line Items] | |
Interest rate, stated percentage | 4.20% |
Face amount | $ 1,000 |
Percentage of Principal Amount of Notes that may be Paid Upon Occurrence of Change in Control Triggering Event | 101.00% |
Notes [Member] | 4.40% 2062 Notes [Member] | |
Debt Instrument [Line Items] | |
Interest rate, stated percentage | 4.40% |
Face amount | $ 1,250 |
Percentage of Principal Amount of Notes that may be Paid Upon Occurrence of Change in Control Triggering Event | 101.00% |
Minimum [Member] | Debt Securities Payable [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Redemption Period without Payment of Make Whole Amount | 2 months |
Maximum [Member] | Debt Securities Payable [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Redemption Period without Payment of Make Whole Amount | 6 months |
Stockholders' equity (Share Rep
Stockholders' equity (Share Repurchase Program) (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Equity [Abstract] | ||
Stock repurchased, Shares | 24.6 | 3.7 |
Stock repurchased | $ 5,410 | $ 865 |
Stockholders' equity (Details T
Stockholders' equity (Details Textual) (Details) $ / shares in Units, shares in Millions, $ in Millions | Feb. 25, 2022USD ($)shares | Jun. 30, 2022$ / shares | Mar. 31, 2022USD ($)$ / shares | Dec. 31, 2021$ / shares | Mar. 31, 2022USD ($)$ / shares | Mar. 31, 2021USD ($)$ / sharesshares | Mar. 31, 2020USD ($)shares | Feb. 24, 2022financial_institution |
Class of Stock [Line Items] | ||||||||
Stock repurchased, Shares | shares | 24.6 | 3.7 | ||||||
Stock repurchased | $ 5,410 | $ 865 | ||||||
Repurchases of common stock | $ 6,310 | $ 865 | ||||||
Amount available for stock repurchases under a board approved stock repurchase plan | $ 4,600 | $ 4,600 | ||||||
Dividends declared per share (in usd per share) | $ / shares | $ 1.94 | $ 1.94 | $ 1.94 | $ 1.76 | ||||
Dividends paid per share (in usd per share) | $ / shares | $ 1.94 | |||||||
Accumulated deficit [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Repurchases of common stock | $ 5,410 | $ 865 | ||||||
Common stock and additional paid-in capital [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Repurchases of common stock | $ 900 | |||||||
Accelerated stock repurchase agreement | ||||||||
Class of Stock [Line Items] | ||||||||
Stock repurchased, Shares | shares | 23.3 | |||||||
Stock repurchased | $ 6,000 | |||||||
Number of Third-Party Financial Institutions | financial_institution | 3 | |||||||
Accelerated stock repurchase agreement | Accumulated deficit [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Repurchases of common stock | 5,100 | |||||||
Accelerated stock repurchase agreement | Common stock and additional paid-in capital [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Repurchases of common stock | $ 900 | |||||||
Forecast [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Dividends paid per share (in usd per share) | $ / shares | $ 1.94 |
Stockholders' equity (Component
Stockholders' equity (Components of AOCI) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Increase (Decrease) in AOCI [Roll Forward] | ||
Balance as of beginning of period | $ 6,700 | $ 9,409 |
Foreign currency translation adjustments | (51) | (39) |
Balance as of end of period | 916 | 9,334 |
Foreign currency translation [Member] | ||
Increase (Decrease) in AOCI [Roll Forward] | ||
Balance as of beginning of period | (844) | |
Foreign currency translation adjustments | (51) | |
Income taxes | 0 | |
Balance as of end of period | (895) | |
Cash flow hedges [Member] | ||
Increase (Decrease) in AOCI [Roll Forward] | ||
Balance as of beginning of period | 61 | |
Unrealized gains | 56 | |
Reclassification adjustments to income | 51 | |
Income taxes | (23) | |
Balance as of end of period | 145 | |
Available-for-sale securities [Member] | ||
Increase (Decrease) in AOCI [Roll Forward] | ||
Balance as of beginning of period | 0 | |
Unrealized gains | 0 | |
Reclassification adjustments to income | 0 | |
Income taxes | 0 | |
Balance as of end of period | 0 | |
Other [Member] | ||
Increase (Decrease) in AOCI [Roll Forward] | ||
Balance as of beginning of period | (13) | |
Unrealized gains | 0 | |
Balance as of end of period | (13) | |
AOCI [Member] | ||
Increase (Decrease) in AOCI [Roll Forward] | ||
Balance as of beginning of period | (796) | (985) |
Foreign currency translation adjustments | (51) | |
Unrealized gains | 56 | |
Reclassification adjustments to income | 51 | |
Income taxes | (23) | |
Balance as of end of period | $ (763) | $ (833) |
Stockholders' equity (Reclassif
Stockholders' equity (Reclassifications out of AOCI) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
Total revenues | $ 6,238 | $ 5,901 |
Other (expense) income, net | (530) | 13 |
Income before income taxes | 1,675 | 1,857 |
Provision for income taxes | (199) | (211) |
Net income | 1,476 | 1,646 |
Product sales [Member] | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
Total revenues | 5,731 | 5,592 |
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 | (51) | (133) |
Provision for income taxes | 11 | 28 |
Net income | (40) | (105) |
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] | ||
Total revenues | 27 | (1) |
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] | ||
Other (expense) income, net | (78) | (132) |
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] | ||
Total revenues | 27 | (1) |
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] | ||
Other (expense) income, net | $ (78) | $ (132) |
Fair value measurement (Details
Fair value measurement (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Assets: | ||||
Interest-bearing securities | $ 5,853 | $ 7,304 | ||
Equity securities | 643 | 831 | ||
Derivatives: | ||||
Total assets | 6,796 | 8,400 | ||
Derivatives: | ||||
Contingent consideration obligations | 330 | 342 | $ 39 | $ 33 |
Total liabilities | 1,195 | 876 | ||
Foreign currency contracts [Member] | ||||
Derivatives: | ||||
Foreign currency and cross-currency swap contracts | 235 | 183 | ||
Derivatives: | ||||
Foreign currency and cross-currency swap contracts | 51 | 39 | ||
Cross-currency swap contracts [Member] | ||||
Derivatives: | ||||
Foreign currency and cross-currency swap contracts | 65 | 66 | ||
Derivatives: | ||||
Foreign currency and cross-currency swap contracts | 358 | 339 | ||
Interest rate swap contracts [Member] | ||||
Derivatives: | ||||
Interest rate swap contracts | 0 | 16 | ||
Derivatives: | ||||
Interest rate swap contracts | 456 | 156 | ||
Quoted prices in active markets for identical assets (Level 1) [Member] | ||||
Assets: | ||||
Equity securities | 473 | 611 | ||
Derivatives: | ||||
Total assets | 6,326 | 7,914 | ||
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 | 300 | 266 | ||
Derivatives: | ||||
Contingent consideration obligations | 0 | 0 | ||
Total liabilities | 865 | 534 | ||
Significant other observable inputs (Level 2) [Member] | Foreign currency contracts [Member] | ||||
Derivatives: | ||||
Foreign currency and cross-currency swap contracts | 235 | 183 | ||
Derivatives: | ||||
Foreign currency and cross-currency swap contracts | 51 | 39 | ||
Significant other observable inputs (Level 2) [Member] | Cross-currency swap contracts [Member] | ||||
Derivatives: | ||||
Foreign currency and cross-currency swap contracts | 65 | 66 | ||
Derivatives: | ||||
Foreign currency and cross-currency swap contracts | 358 | 339 | ||
Significant other observable inputs (Level 2) [Member] | Interest rate swap contracts [Member] | ||||
Derivatives: | ||||
Interest rate swap contracts | 0 | 16 | ||
Derivatives: | ||||
Interest rate swap contracts | 456 | 156 | ||
Significant unobservable inputs (Level 3) [Member] | ||||
Assets: | ||||
Equity securities | 170 | 220 | ||
Derivatives: | ||||
Total assets | 170 | 220 | ||
Derivatives: | ||||
Contingent consideration obligations | 330 | 342 | ||
Total liabilities | 330 | 342 | ||
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 | 16 | 47 | ||
U.S. Treasury notes [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | ||||
Assets: | ||||
Interest-bearing securities | 16 | 47 | ||
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 | 0 | 1,400 | ||
U.S. Treasury bills [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | ||||
Assets: | ||||
Interest-bearing securities | 0 | 1,400 | ||
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 | ||
Money market mutual funds [Member] | ||||
Assets: | ||||
Interest-bearing securities | 5,837 | 5,856 | ||
Money market mutual funds [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | ||||
Assets: | ||||
Interest-bearing securities | 5,837 | 5,856 | ||
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 | 0 | 1 | ||
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 | 0 | 1 | ||
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, 2022 | Dec. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Length of time hedged in foreign currency contracts (or less) | 3 years | |
Long-term debt, fair value | $ 38,400 | $ 37,900 |
Carrying value of debt | 36,854 | 33,309 |
Collaborative arrangement with BeiGene, Ltd. [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Method Investments,Quoted Market Price | 3,600 | 5,100 |
Carrying value of equity method investment | 2,600 | 2,800 |
Teneobio Inc. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Maximum additional consideration due contingent on certain milestones | $ 1,600 | $ 1,600 |
Fair value measurement - Contin
Fair value measurement - Contingent Consideration Obligations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | ||
Beginning balance | $ 342 | $ 33 |
Payments | (2) | (1) |
Net changes in valuations | (10) | 7 |
Ending balance | $ 330 | $ 39 |
Derivative instruments (Details
Derivative instruments (Details Textual) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
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 | $ 120 | |
Forward Contracts [Member] | Designated as Hedging Instrument [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amounts | 5,600 | $ 5,700 |
Forward Contracts [Member] | Derivatives not designated as hedging instrument [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amounts | 655 | 680 |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amounts | $ 6,700 | $ 6,700 |
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, 2022USD ($) | Mar. 31, 2022CHF (SFr) | Mar. 31, 2022EUR (€) | Mar. 31, 2022GBP (£) |
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 | 747 | £ 475 | ||
4.00% 2029 pound sterling Notes [Member] | ||||
Derivative [Line Items] | ||||
Notional amounts | $ 1,111 | £ 700 | ||
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 | 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, 2022 | Mar. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total unrealized gains (losses) | $ 56 | $ 108 |
Foreign currency contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total unrealized gains (losses) | 78 | 183 |
Cross-currency swap contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total unrealized gains (losses) | $ (22) | $ (75) |
Derivative instruments (Hedged
Derivative instruments (Hedged Liabilities and Cumulative Amount) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Cumulative amounts of fair value hedging adjustments related to the carrying amounts of the hedged liabilities | $ (53) | $ 284 |
Current portion of long-term debt [Member] | ||
Derivative [Line Items] | ||
Hedged Liability, Fair Value Hedge | 83 | 85 |
Cumulative amounts of fair value hedging adjustments related to the carrying amounts of the hedged liabilities | 83 | 85 |
Carrying value with discontinued hedging relationships | 83 | 85 |
Hedging adjustments on discontinued hedging relationships | 83 | 85 |
Long-term debt [Member] | ||
Derivative [Line Items] | ||
Hedged Liability, Fair Value Hedge | 6,395 | 6,729 |
Cumulative amounts of fair value hedging adjustments related to the carrying amounts of the hedged liabilities | (136) | 199 |
Carrying value with discontinued hedging relationships | 419 | 440 |
Hedging adjustments on discontinued hedging relationships | $ 319 | $ 340 |
Derivative instruments (Summary
Derivative instruments (Summary of Income and Expense Line Items) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total revenues | $ 6,238 | $ 5,901 |
Other (expense) income, net | (530) | 13 |
Interest expense, net | (295) | (285) |
Interest rate swap agreements [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) on fair value hedging relationships, Hedged items | 337 | 175 |
Gains (losses) on fair value hedging relationships, Derivatives designated as hedging instruments | (315) | (152) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Cash flow hedges [Member] | Cross-currency swap contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Other (expense) income, net | (78) | (132) |
Product sales [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total revenues | 5,731 | 5,592 |
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] | ||
Total revenues | $ 27 | $ (1) |
Derivative instruments (Fair Va
Derivative instruments (Fair Value of Derivatives) (Details) - Derivatives designated as hedging instrument [Member] - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Total derivative assets, fair value | $ 300 | $ 265 |
Liabilities | ||
Total derivative liabilities, fair value | 865 | 534 |
Foreign currency contracts [Member] | Other current assets/Other assets [Member] | ||
Assets | ||
Total derivative assets, fair value | 235 | 183 |
Foreign currency contracts [Member] | Accrued liabilities/Other noncurrent liabilities [Member] | ||
Liabilities | ||
Total derivative liabilities, fair value | 51 | 39 |
Cross-currency swap contracts [Member] | Other current assets/Other assets [Member] | ||
Assets | ||
Total derivative assets, fair value | 65 | 66 |
Cross-currency swap contracts [Member] | Accrued liabilities/Other noncurrent liabilities [Member] | ||
Liabilities | ||
Total derivative liabilities, fair value | 358 | 339 |
Interest rate swap contracts [Member] | Other current assets/Other assets [Member] | ||
Assets | ||
Total derivative assets, fair value | 0 | 16 |
Interest rate swap contracts [Member] | Accrued liabilities/Other noncurrent liabilities [Member] | ||
Liabilities | ||
Total derivative liabilities, fair value | $ 456 | $ 156 |
Contingencies and commitments (
Contingencies and commitments (Details) | Mar. 11, 2022claim |
Sensipar Antitrust Class Actions [Member] | |
Loss Contingencies [Line Items] | |
Loss Contingency, New Claims Filed, Number | 10 |