Cover page
Cover page - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 09, 2024 | Jun. 30, 2023 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-37702 | ||
Entity Registrant Name | Amgen Inc. | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 118,556,278,405 | ||
Entity Common Stock, Shares Outstanding | 535,918,901 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Specified portions of the registrant’s Proxy Statement with respect to the 2024 Annual Meeting of Stockholders to be held on May 31, 2024, are incorporated by reference into Part III of this annual report. | ||
Entity Central Index Key | 0000318154 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Common Stock | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Common stock, $0.0001 par value | ||
Trading Symbol | AMGN | ||
Security Exchange Name | NASDAQ | ||
2.00% Senior Notes Due 2026 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 2.00% Senior Notes due 2026 | ||
Trading Symbol | AMGN26 | ||
Security Exchange Name | NASDAQ |
Audit information
Audit information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | Los Angeles, California |
Auditor Firm ID | 42 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues: | |||
Total revenues | $ 28,190 | $ 26,323 | $ 25,979 |
Operating expenses: | |||
Cost of sales | 8,451 | 6,406 | 6,454 |
Research and development | 4,784 | 4,434 | 4,819 |
Acquired in-process research and development | 0 | 0 | 1,505 |
Selling, general and administrative | 6,179 | 5,414 | 5,368 |
Other | 879 | 503 | 194 |
Total operating expenses | 20,293 | 16,757 | 18,340 |
Operating income | 7,897 | 9,566 | 7,639 |
Other income (expense): | |||
Interest expense, net | (2,875) | (1,406) | (1,197) |
Other income (expense), net | 2,833 | (814) | 259 |
Income before income taxes | 7,855 | 7,346 | 6,701 |
Provision for income taxes | 1,138 | 794 | 808 |
Net income | $ 6,717 | $ 6,552 | $ 5,893 |
Earnings per share: | |||
Basic (in usd per share) | $ 12.56 | $ 12.18 | $ 10.34 |
Diluted (in usd per share) | $ 12.49 | $ 12.11 | $ 10.28 |
Shares used in the calculation of earnings per share: | |||
Basic (in shares) | 535 | 538 | 570 |
Diluted (in shares) | 538 | 541 | 573 |
Product sales | |||
Revenues: | |||
Total revenues | $ 26,910 | $ 24,801 | $ 24,297 |
Other revenues | |||
Revenues: | |||
Total revenues | $ 1,280 | $ 1,522 | $ 1,682 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 6,717 | $ 6,552 | $ 5,893 |
Other comprehensive (loss) income, net of reclassification adjustments and taxes: | |||
Gains (losses) on foreign currency translation | 50 | 496 | (135) |
(Losses) gains on cash flow hedges | (150) | 67 | 324 |
Losses on available-for-sale securities | 0 | 0 | (1) |
Other | 42 | 2 | 1 |
Other comprehensive (loss) income, net of taxes | (58) | 565 | 189 |
Comprehensive income | $ 6,659 | $ 7,117 | $ 6,082 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 10,944 | $ 7,629 |
Marketable securities | 0 | 1,676 |
Trade receivables, net | 7,268 | 5,563 |
Inventories | 9,518 | 4,930 |
Other current assets | 2,602 | 2,388 |
Total current assets | 30,332 | 22,186 |
Property, plant and equipment, net | 5,941 | 5,427 |
Intangible assets, net | 32,641 | 16,080 |
Goodwill | 18,629 | 15,529 |
Other noncurrent assets | 9,611 | 5,899 |
Total assets | 97,154 | 65,121 |
Current liabilities: | ||
Accounts payable | 1,590 | 1,572 |
Accrued liabilities | 15,359 | 12,524 |
Current portion of long-term debt | 1,443 | 1,591 |
Total current liabilities | 18,392 | 15,687 |
Long-term debt | 63,170 | 37,354 |
Long-term deferred tax liabilities | 2,354 | 11 |
Long-term tax liabilities | 4,680 | 5,757 |
Other noncurrent liabilities | 2,326 | 2,651 |
Contingencies and commitments | ||
Stockholders’ equity: | ||
Common stock and additional paid-in capital; $0.0001 par value per share; 2,750.0 shares authorized; outstanding—535.4 shares in 2023 and 534.0 shares in 2022 | 33,070 | 32,514 |
Accumulated deficit | (26,549) | (28,622) |
Accumulated other comprehensive loss | (289) | (231) |
Total stockholders’ equity | 6,232 | 3,661 |
Total liabilities and stockholders’ equity | $ 97,154 | $ 65,121 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
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 (in shares) | 2,750 | 2,750 |
Common stock and additional paid-in capital, shares outstanding (in shares) | 535.4 | 534 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions | Total | Number of shares of common stock | Common stock and additional paid-in capital | Accumulated deficit | Accumulated other comprehensive (loss) income |
Beginning balance (in shares) at Dec. 31, 2020 | 578.3 | ||||
Beginning balance at Dec. 31, 2020 | $ 9,409 | $ 31,802 | $ (21,408) | $ (985) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 5,893 | 5,893 | |||
Other comprehensive income, net of taxes | 189 | 189 | |||
Dividends declared on common stock | (4,098) | (4,098) | |||
Issuance of common stock in connection with the Company’s equity award programs (in shares) | 1.7 | ||||
Issuance of common stock in connection with the Company’s equity award programs | 82 | 82 | |||
Stock-based compensation expense | 361 | 361 | |||
Tax impact related to employee stock-based compensation expense | (149) | (149) | |||
Repurchases of common stock (in shares) | (21.7) | ||||
Repurchases of common stock | (4,987) | (4,987) | |||
Ending balance (in shares) at Dec. 31, 2021 | 558.3 | ||||
Ending balance at Dec. 31, 2021 | 6,700 | 32,096 | (24,600) | (796) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 6,552 | 6,552 | |||
Other comprehensive income, net of taxes | 565 | 565 | |||
Dividends declared on common stock | (4,264) | (4,264) | |||
Issuance of common stock in connection with the Company’s equity award programs (in shares) | 1.8 | ||||
Issuance of common stock in connection with the Company’s equity award programs | 138 | 138 | |||
Stock-based compensation expense | 419 | 419 | |||
Tax impact related to employee stock-based compensation expense | (139) | (139) | |||
Repurchases of common stock (in shares) | (26.1) | ||||
Repurchases of common stock | $ (6,310) | (6,310) | |||
Ending balance (in shares) at Dec. 31, 2022 | 534 | 534 | |||
Ending balance at Dec. 31, 2022 | $ 3,661 | 32,514 | (28,622) | (231) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 6,717 | 6,717 | |||
Other comprehensive income, net of taxes | (58) | (58) | |||
Dividends declared on common stock | (4,644) | (4,644) | |||
Issuance of common stock in connection with the Company’s equity award programs (in shares) | 1.4 | ||||
Issuance of common stock in connection with the Company’s equity award programs | 95 | 95 | |||
Stock-based compensation expense | 454 | 454 | |||
Equity awards issued for Horizon acquisition, net | 141 | 141 | |||
Tax impact related to employee stock-based compensation expense | (134) | (134) | |||
Repurchases of common stock (in shares) | 0 | ||||
Repurchases of common stock | $ 0 | 0 | 0 | ||
Ending balance (in shares) at Dec. 31, 2023 | 535.4 | 535.4 | |||
Ending balance at Dec. 31, 2023 | $ 6,232 | $ 33,070 | $ (26,549) | $ (289) |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 1 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 12, 2023 | Oct. 31, 2023 | Jul. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Oct. 31, 2022 | Jul. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Oct. 31, 2021 | Jul. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||||||||||||||
Common stock, dividends declared per share (in usd per share) | $ 2.25 | $ 2.13 | $ 2.13 | $ 2.13 | $ 2.13 | $ 1.94 | $ 1.94 | $ 1.94 | $ 1.94 | $ 1.76 | $ 1.76 | $ 1.76 | $ 1.76 | $ 8.64 | $ 7.95 | $ 7.22 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net income | $ 6,717 | $ 6,552 | $ 5,893 |
Depreciation, amortization and other | 4,071 | 3,417 | 3,398 |
Stock-based compensation expense | 431 | 401 | 341 |
Deferred income taxes | (1,273) | (1,198) | (453) |
Acquired in-process research and development | 0 | 0 | 1,505 |
Adjustments for equity method investments | 11 | 891 | 33 |
Loss on divestiture | 0 | 567 | 0 |
(Gains) losses on equity securities | (1,565) | 127 | 0 |
Other items, net | 563 | (303) | (262) |
Changes in operating assets and liabilities, net of acquisitions: | |||
Trade receivables, net | (1,015) | (746) | (429) |
Inventories | 491 | (742) | (165) |
Other assets | (564) | 258 | (237) |
Accounts payable | (402) | 154 | (69) |
Accrued income taxes, net | (1,031) | (647) | (854) |
Long-term tax liabilities | 371 | 229 | 204 |
Accrued sales incentives and allowance | 935 | 846 | 404 |
Other liabilities | 731 | (85) | (48) |
Net cash provided by operating activities | 8,471 | 9,721 | 9,261 |
Cash flows from investing activities: | |||
Cash paid for acquisitions, net of cash acquired | (26,989) | (3,839) | (2,529) |
Purchases of marketable securities | (1) | (2,587) | (8,900) |
Proceeds from sales of marketable securities | 1,123 | 98 | 4,403 |
Proceeds from maturities of marketable securities | 550 | 1,120 | 8,831 |
Purchases of property, plant and equipment | (1,112) | (936) | (880) |
Other | 225 | 100 | (192) |
Net cash (used in) provided by investing activities | (26,204) | (6,044) | 733 |
Cash flows from financing activities: | |||
Net proceeds from issuance of debt | 27,777 | 6,919 | 4,945 |
Extinguishment of debt | (647) | (297) | 0 |
Repayment of debt | (1,454) | 0 | (4,150) |
Repurchases of common stock | 0 | (6,360) | (4,975) |
Dividends paid | (4,556) | (4,196) | (4,013) |
Other | (72) | (103) | (78) |
Net cash provided by (used in) financing activities | 21,048 | (4,037) | (8,271) |
Increase (decrease) in cash and cash equivalents | 3,315 | (360) | 1,723 |
Cash and cash equivalents at beginning of year | 7,629 | 7,989 | 6,266 |
Cash and cash equivalents at end of year | $ 10,944 | $ 7,629 | $ 7,989 |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2023 | |
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. Principles of consolidation The 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. Certain reclassifications have been made to prior periods in the consolidated financial statements and accompanying notes to conform with the current presentation. On October 6, 2023, Amgen completed its acquisition of Horizon, and its operations became included in our consolidated financial statements commencing on the acquisition date. See Note 3, Acquisitions and divestitures, for additional information regarding this acquisition. Use of estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results may differ from those estimates. Revenues Product sales and sales deductions Revenue from product sales is recognized upon transfer of control of a product to a customer, generally upon delivery, based on an amount that reflects the consideration to which we expect to be entitled, net of accruals for estimated rebates, wholesaler chargebacks, discounts and other deductions (collectively, sales deductions) and returns established at the time of sale. We analyze the adequacy of our accruals for sales deductions quarterly. Amounts accrued for sales deductions are adjusted when trends or significant events indicate that an adjustment is appropriate. Accruals are also adjusted to reflect actual results. Accruals for sales deductions are based primarily on estimates of the amounts earned or to be claimed on the related sales. These estimates take into consideration current contractual and statutory requirements, specific known market events and trends, internal and external historical data and forecasted customer buying patterns. Sales deductions are substantially product specific and therefore, for any given period, can be affected by the mix of products sold. Included in sales deductions are immaterial net adjustments related to prior-period sales due to changes in estimates. Returns are estimated through comparison of historical return data with their related sales on a production lot basis. Historical rates of return are determined for each product and are adjusted for known or expected changes in the marketplace specific to each product, when appropriate. Historically, sales return provisions have amounted to less than 1% of gross product sales. Changes in estimates for prior-period sales return provisions have historically been immaterial. Our payment terms vary by types and locations of customers and by products or services offered. Payment terms differ by jurisdiction and customer, but payment is generally required in a term ranging from 30 to 120 days from date of shipment or satisfaction of the performance obligation. For certain products or services and certain customer types, we may require payment before products are delivered or services are rendered to customers. Indirect taxes collected from customers and remitted to government authorities that are related to sales of the Company’s products, primarily in Europe, are excluded from revenues. As a practical expedient, sales commissions are expensed when incurred because the amortization period would have been one year or less. These costs are recorded in SG&A expense in the Consolidated Statements of Income. Other revenues Other revenues consist primarily of royalty income and corporate partner revenues. Royalties from licensees are based on third-party sales of licensed products and are recorded when the related third-party product sale occurs. Royalty income is estimated based on historical and forecasted sales trends. Corporate partner revenues are composed mainly of license fees and milestones earned and our share of commercial profits generated from collaborations. See Arrangements with multiple-performance obligations, discussed below. Arrangements with multiple-performance obligations From time to time, we enter into arrangements for the R&D, manufacture and/or commercialization of products and product candidates. Such arrangements may require us to deliver various rights, services and/or goods, including intellectual property rights/licenses, R&D services, manufacturing services and/or commercialization services. The underlying terms of these arrangements generally provide for consideration to Amgen in the form of nonrefundable, upfront license fees; development and commercial-performance milestone payments; royalty payments; and/or profit sharing. In arrangements involving more than one performance obligation, each required performance obligation is evaluated to determine whether it qualifies as a distinct performance obligation based on whether (i) the customer can benefit from the good or service either on its own or together with other resources that are readily available and (ii) the good or service is separately identifiable from other promises in the contract. The consideration under the arrangement is then allocated to each separate distinct performance obligation based on its respective relative stand-alone selling price. The estimated selling price of each deliverable reflects our best estimate of what the selling price would be if the deliverable was regularly sold by us on a stand-alone basis or by using an adjusted market assessment approach if selling price on a stand-alone basis is not available. The consideration allocated to each distinct performance obligation is recognized as revenue when control of the related goods or services is transferred. Consideration associated with at-risk substantive performance milestones is recognized as revenue when it is probable that a significant reversal of the cumulative revenue recognized will not occur. We utilize the sales- and usage-based royalty exception in arrangements that resulted from the license of intellectual property, recognizing revenues generated from royalties or profit sharing as the underlying sales occur. Research and development costs R&D costs are expensed as incurred and primarily include salaries, benefits and other staff-related costs; facilities and overhead costs; clinical trial and related clinical manufacturing costs; contract services and other outside costs; information systems’ costs; and amortization of acquired technology used in R&D with alternative future uses. R&D expenses also include costs and cost recoveries associated with third-party R&D arrangements, including upfront fees and milestones paid to third parties in connection with technologies that had not reached technological feasibility and did not have an alternative future use. Net payment or reimbursement of R&D costs is recognized when the obligations are incurred or as we become entitled to the cost recovery. See Note 9, Collaborations. Selling, general and administrative costs SG&A costs are primarily composed of salaries, benefits and other staff-related costs associated with sales and marketing, finance, legal and other administrative personnel; facilities and overhead costs; outside marketing, advertising and legal expenses; the U.S. healthcare reform federal excise fee on Branded Prescription Pharmaceutical Manufacturers and Importers; and other general and administrative costs. Advertising costs are expensed as incurred and were $647 million, $841 million and $843 million during the years ended December 31, 2023, 2022 and 2021, respectively. SG&A expenses also include costs and cost recoveries associated with marketing and promotion efforts under certain collaborative arrangements. Net payment or reimbursement of SG&A costs is recognized when the obligations are incurred or we become entitled to the cost recovery. See Note 9, Collaborations. Leases At inception of a contract, we determine whether an arrangement is or contains a lease. For all leases, we determine the classification as either operating or financing. Operating leases are included in Other noncurrent assets, Accrued liabilities and Other noncurrent liabilities in our Consolidated Balance Sheets. ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments under the lease. Lease recognition occurs at the commencement date, and lease liability amounts are based on the present value of lease payments made during the lease term. Our lease terms may include options to extend or terminate a lease when it is reasonably certain that we will exercise that option. Because most of our leases do not provide information to determine an implicit interest rate, we use our incremental borrowing rate in determining the present value of lease payments. ROU assets also include any lease payments made prior to the commencement date less lease incentives received. Operating lease expense is recognized on a straight-line basis over the lease term. We have lease agreements with both lease and nonlease components, which are generally accounted for together as a single lease component. In addition, for certain vehicle and equipment leases, we apply a portfolio approach to determine the lease term and discount rate. Stock-based compensation We have stock-based compensation plans under which various types of equity-based awards are granted, including RSUs, performance units and stock options. The fair values of RSUs and stock option awards, which are subject only to service conditions with graded vesting, are recognized as compensation expense, generally on a straight-line basis over the service period, net of estimated forfeitures. The fair values of performance unit awards are recognized as compensation expense, generally on a straight-line basis from the grant date to the end of the performance period. See Note 5, Stock-based compensation. Income taxes We provide for income taxes based on pretax income and applicable tax rates in the various jurisdictions in which we operate. Significant judgment is required in determining our provision for income taxes and income tax assets and liabilities, including evaluating uncertainties in the application of accounting principles and complex tax laws. Deferred income taxes are recorded for the expected tax consequences of temporary differences between the bases of assets and liabilities, as well as for loss and tax credit carryforwards for financial reporting purposes and amounts recognized for income tax purposes. We record a valuation allowance to reduce our deferred tax assets to the amount of future tax benefit that is more likely than not to be realized. We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by tax authorities based on the technical merits of the position. The tax benefit recognized in the consolidated financial statements for a particular tax position is based on the largest benefit that is more likely than not to be realized. The amount of UTBs is adjusted as appropriate for changes in facts and circumstances, such as significant amendments to existing tax law, new regulations or interpretations by tax authorities, new information obtained during a tax examination or resolution of an examination. We recognize both accrued interest and penalties, when appropriate, related to UTBs in income tax expense. See Note 7, Income taxes. Acquisitions We first determine whether a set of assets acquired constitute a business and should be accounted for as a business combination. If the assets acquired do not constitute a business, we account for the transaction as an asset acquisition. Business combinations are accounted for by means of the acquisition method of accounting. Under the acquisition method, assets acquired, including IPR&D projects, and liabilities assumed are recorded at their respective fair values as of the acquisition date in our consolidated financial statements. The excess of the fair value of consideration transferred over the fair value of the net assets acquired is recorded as goodwill. Contingent consideration obligations incurred in connection with a business combination (including the assumption of an acquiree’s liability arising from an acquisition it consummated prior to our acquisition) are recorded at their fair values on the acquisition date and remeasured at their fair values each subsequent reporting period until the related contingencies have been resolved. The resulting changes in fair values are recorded in earnings. In contrast, asset acquisitions are accounted for by using a cost accumulation and allocation model. Under this model, the cost of the acquisition is allocated to the assets acquired and liabilities assumed. IPR&D projects with no alternative future use are recorded in R&D expense upon acquisition, and contingent consideration obligations incurred in connection with an asset acquisition are recorded when it is probable that they will occur and they can be reasonably estimated. See Note 3, Acquisitions and divestitures, and Note 18, Fair value measurement. Cash equivalents We consider cash equivalents to be only those investments that are highly liquid, that are readily convertible to cash and that mature within three months from the date of purchase. Interest-bearing securities We consider our interest-bearing securities investment portfolio as available-for-sale, and accordingly, these investments are recorded at fair value, with unrealized gains and losses recorded in AOCI. Investments with maturities beyond one year may be classified as short-term marketable securities in the Consolidated Balance Sheets due to their highly liquid nature and because they represent the Company’s investments that are available for current operations. See Note 10, Investments, and Note 18, Fair value measurement. Inventories Inventories are stated at the lower of cost or net realizable value. Cost, which includes amounts related to materials, labor and overhead, is determined in a manner that approximates the first-in, first-out method. Net realizable value is the estimated selling price in the ordinary course of business less reasonably predictable costs of completion, disposal and transportation. See Note 11, Inventories. Derivatives We recognize all of our derivative instruments as either assets or liabilities at fair value in the Consolidated Balance Sheets. The accounting for changes in the fair value of a derivative instrument depends on whether the derivative has been formally designated and qualifies as part of a hedging relationship under the applicable accounting standards and, further, on the type of hedging relationship. For derivatives formally designated as hedges, we assess both at inception and quarterly thereafter whether the hedging derivatives are highly effective in offsetting changes in either the fair value or cash flows of the hedged item. Our derivatives that are not designated and do not qualify as hedges are adjusted to fair value through current earnings. See Note 18, Fair value measurement, and Note 19, Derivative instruments. Property, plant and equipment, net Property, plant and equipment is recorded at historical cost, net of accumulated depreciation, amortization and, if applicable, impairment charges. We review our property, plant and equipment assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Depreciation is recorded over the assets’ useful lives on a straight-line basis. Leasehold improvements are amortized on a straight-line basis over the shorter of their estimated useful lives or lease terms. See Note 12, Property, plant and equipment. Goodwill and other intangible assets Finite-lived intangible assets are recorded at cost, net of accumulated amortization, and, if applicable, impairment charges. Amortization of finite-lived intangible assets is recorded over the assets’ estimated useful lives on a straight-line basis or based on the pattern in which economic benefits are consumed, if reliably determinable. We review our finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. See Note 13, Goodwill and other intangible assets. The fair values of IPR&D projects acquired in a business combination that are not complete are capitalized and accounted for as indefinite-lived intangible assets until completion or abandonment of the related R&D efforts. Upon successful completion of the project, the capitalized amount is amortized over its estimated useful life. If a project is abandoned, all remaining capitalized amounts are written off immediately. Major risks and uncertainties are often associated with IPR&D projects because we are required to obtain regulatory approvals before marketing the resulting products. Such approvals require completing clinical trials that demonstrate a product candidate is safe and effective. Consequently, the eventual realized value of the acquired IPR&D project may vary from its fair value at the date of acquisition, and IPR&D impairment charges may occur in future periods. Capitalized IPR&D projects are tested for impairment annually and whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. We consider various factors for potential impairment, including the current legal and regulatory environment and the competitive landscape. Adverse clinical trial results, significant delays in obtaining marketing approval, the inability to bring a product to market and the introduction or advancement of competitors’ products could result in partial or full impairment of the related intangible assets. We perform an impairment test of goodwill annually and whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. To date, an impairment of goodwill has not been recorded. See Note 13, Goodwill and other intangible assets. 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. Certain of these proceedings are discussed in Note 20, Contingencies and commitments. 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. Foreign currency translation The net assets of international subsidiaries whose functional currencies are not in U.S. dollars are translated into U.S. dollars using current exchange rates. The U.S. dollar effects that arise from translation of the net assets of these subsidiaries at changing rates are recognized in AOCI. The subsidiaries’ earnings are translated into U.S. dollars by using average exchange rates. Equity investments Marketable and nonmarketable equity securities Investments in publicly traded equity securities with readily determinable fair values are recorded at quoted market prices for identical securities, with changes in fair value recorded in Other income (expense), net, in the Consolidated Statements of Income. Investments in equity securities without readily determinable fair values are recorded at cost minus impairment, if any, adjusted for changes resulting from observable price changes in orderly transactions for identical or similar securities. Such adjustments are recorded in Other income (expense), net, in the Consolidated Statements of Income. Equity method investments Equity investments that give us the ability to exert significant influence, but not control, over an investee for which we have not elected the fair value option are accounted for under the equity method of accounting. In concluding whether we have the ability to exercise significant influence over an investee, we consider factors such as our ownership percentage, voting and other shareholder rights, board of directors representation and the existence of other collaborative or business relationships. The equity method of accounting requires us to allocate the difference between the fair value of securities acquired and our proportionate share of the carrying value of the underlying assets (the basis difference) to various items and amortize such differences over their useful lives. Our share of investees’ earnings or losses and amortization of basis differences, if any, are recorded one quarter in arrears in Other income (expense), net, in the Consolidated Statements of Income. We record impairment losses on our equity method investments if we deem the impairment to be other-than-temporary. We deem an impairment to be other-than-temporary based on various factors, including but not limited to, the length of time the fair value is below the carrying value, volatility of the security price and our intent and ability to retain the investment to allow for a recovery in fair value. For equity method investments for which we have elected the fair value option, changes in fair value are recorded in Other income (expense), net, in the Consolidated Statements of Income. Additionally, we hold investments in limited partnerships, which primarily invest in early-stage biotechnology companies. As a practical expedient, such limited partnership investments are measured by using our proportionate share of the net asset values of the underlying investments held by the limited partnerships, with such changes included in Other income (expense), net, in the Consolidated Statements of Income. Recent accounting pronouncements In November 2023, the FASB issued a new accounting standard which improves reportable segment disclosure requirements. The new standard will require enhanced disclosures about a public company’s significant segment expenses and more timely and detailed segment information reporting throughout the fiscal period, including for companies with a single reportable segment. The standard is effective for annual periods beginning after December 15, 2023 and interim periods beginning after December 15, 2024, and early adoption is permitted. We are currently evaluating the impact of this new standard on our consolidated financial statements and related disclosures. In December 2023, the FASB issued a new accounting standard which improves income tax disclosure requirements. The new standard will require more detailed information on several income tax disclosures, such as income taxes paid and the income tax rate reconciliation table. The standard is effective for public business entities such as Amgen with annual periods beginning after December 15, 2024, and early adoption is permitted. We are currently evaluating the impact of this new standard on our consolidated financial statements and related disclosures. |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring In the first quarter of 2023, we initiated a restructuring plan to enhance continued innovation, including investments in first-in-class medicines, while improving our cost structure. As part of the plan, we are reallocating resources to the areas of the business that will enable long-term growth. We completed substantially all the activities associated with this restructuring plan in 2023. The following table summarizes recorded charges related to the restructuring plan by type of activity and the locations recognized within the Consolidated Statements of Income (in millions): Year ended December 31, 2023 Separation costs Asset impairments and other charges Total Cost of sales $ — $ 36 $ 36 Research and development — 29 29 Selling, general and administrative — 13 13 Other 186 3 189 Total $ 186 $ 81 $ 267 As of December 31, 2023, total restructuring liability decreased to $45 million primarily due to payments related to separation costs. The total restructuring liability was included in Accrued liabilities in the Consolidated Balance Sheets. |
Acquisitions and divestitures
Acquisitions and divestitures | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and divestitures | Acquisitions and divestitures Acquisition of Horizon Therapeutics plc On October 6, 2023, Amgen completed its acquisition of Horizon for $116.50 per share in cash, representing a total consideration of approximately $27.8 billion. The acquisition was funded primarily through our March 2023 debt issuance and borrowings from our term loan credit agreement. See Note 16, Financing arrangements. Horizon is a global biotechnology company focused on the discovery, development and commercialization of medicines that address critical needs of patients impacted by rare, autoimmune and severe inflammatory diseases. The acquisition, which was accounted for as a business combination, aligns with Amgen’s core strategy of delivering innovative medicines that make a significant difference for patients suffering from serious diseases and strengthens Amgen’s leading rare disease portfolio by adding first-in-class, early-in-lifecycle medicines, including TEPEZZA for thyroid eye disease, KRYSTEXXA for chronic refractory gout and UPLIZNA for neuromyelitis optica spectrum disorder. Upon its acquisition, Horizon became a wholly owned subsidiary of Amgen, and its operations have been included in our consolidated financial statements commencing on the acquisition date. During the three months ended December 31, 2023, the Company incurred approximately $487 million of acquisition costs related to the closing of our Horizon acquisition, consisting of $167 million for share-based payments to settle non-vested equity awards attributable to post-combination services, severance and other employee-related expenses, and $320 million of transaction costs. These costs were included primarily in SG&A expense in the Consolidated Statements of Income. The following table summarizes the total consideration and allocated acquisition date fair values of assets acquired and liabilities assumed (in millions): Amounts Cash and cash equivalents $ 681 Inventories 5,025 Property, plant and equipment, net 318 Finite-lived intangible assets – developed-product-technology rights 19,590 IPR&D 1,060 Goodwill 3,111 Deferred tax asset 834 Deferred tax liability (2,492) Other assets and liabilities, net (294) Total assets acquired, net $ 27,833 The $27.8 billion total consideration for this transaction consisted of (i) cash consideration transferred to common shareholders of $26.7 billion; (ii) cash consideration transferred to vested and outstanding options, outstanding RSU awards, and outstanding PSU awards of $523 million; (iii) fair value of Amgen replacement awards (based on conversion of outstanding employee RSU awards) of $180 million representing non-cash consideration; and (iv) a portion of Horizon’s debt, settled by Amgen on the closing date, of $382 million. Amgen issued 1.7 million replacement equity awards with the original vesting conditions, and fair value was determined based on acquisition date fair value based on the conversion calculation. See Note 5, Stock-based compensation. The estimated fair values of $20.7 billion for the developed-product-technology rights and IPR&D 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. The developed-product-technology rights are being amortized on a straight-line basis over a weighted-average period of approximately 10 years using the straight-line methodology. The estimated fair value of the acquired inventory of $5.0 billion was determined using the comparative sales method, which uses actual or expected selling prices of inventory as the base amount to which adjustments for selling effort and a profit on the buyer’s effort are applied. The inventory fair value adjustment is being amortized using a weighted-average inventory turnover, which we estimate to approximate 27 months. A deferred tax liability of $2.5 billion 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, as well as associated deferred tax asset for anticipatory foreign tax credits of $834 million. The excess of the acquisition date consideration over the fair values assigned to the assets acquired and the liabilities assumed of $3.1 billion was recorded as goodwill, which is not deductible for tax purposes. The goodwill value represents expected synergies from the marketed products acquired and other benefits. 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. Following the acquisition date of October 6, 2023, the operating results of Horizon have been included in our consolidated financial statements. For the period from the acquisition date through December 31, 2023, total revenues and net losses attributable to Horizon were $955 million and $1.2 billion, respectively, inclusive of $633 million of inventory fair value step-up amortization and $479 million of intangible asset amortization recorded in Cost of sales in the Consolidated Statements of Income. Supplemental Pro Forma Financial Information The following table presents the unaudited supplemental pro forma results of a hypothetical combined Amgen and Horizon for the years ended December 31, 2023 and 2022, as if the acquisition of Horizon had occurred on January 1, 2022 (in millions): Years ended December 31, 2023 2022 Total revenue $ 30,969 $ 29,964 Net income $ 5,383 $ 2,381 The unaudited supplemental pro forma combined financial information was prepared using the acquisition method of accounting and was based on the historical financial information of Amgen and Horizon. In order to reflect the occurrence of the acquisition on January 1, 2022, the unaudited supplemental pro forma financial information includes adjustments to reflect the following: (i) incremental amortization expense based on the current preliminary fair values of the identifiable intangible assets and inventory step-up; (ii) the additional interest expense associated with the issuance of debt to finance the acquisition; (iii) the reclassification of transaction and other acquisition-related costs incurred during the three months ended December 31, 2023, to the year ended December 31, 2022; and (iv) the income tax impact using an estimated effective tax rate applied to the combined entity. The unaudited supplemental pro forma financial information is not necessarily indicative of what the consolidated results of operations would have been had the acquisition been completed on January 1, 2022. In addition, the unaudited pro forma financial information is not a projection of future results of operations of the combined company, nor does it reflect the expected realization of any synergies or cost savings associated with the acquisition. Acquisition of ChemoCentryx, Inc. On October 20, 2022, we acquired all of the outstanding stock of ChemoCentryx, a publicly traded biotechnology company focused on orally administered therapeutics to treat autoimmune diseases, inflammatory disorders and cancer, for $52.00 per share in cash, representing a total consideration of $3.9 billion. The acquisition, which was accounted for as a business combination, includes TAVNEOS, an orally administered selective complement 5a receptor inhibitor that was approved by the FDA in October 2021 as an adjunctive therapy for adults with severe active antineutrophil cytoplasmic autoantibody-associated vasculitis (ANCA-associated vasculitis). TAVNEOS is commercialized by us in the United States; for markets outside the United States, TAVNEOS is commercialized by a collaboration partner, and Amgen is entitled to royalties and milestones based on future sales of the product. Upon its acquisition, ChemoCentryx became a wholly owned subsidiary of Amgen, and its operations became included in our consolidated financial statements commencing on the acquisition date. Measurement period adjustments during the year ended December 31, 2023, included changes in the purchase price allocation and total consideration, resulting in a net decrease of approximately $18 million to goodwill. The measurement period adjustments resulted primarily from valuation inputs pertaining to the TAVNEOS intangible assets, adjustments to vendor payables and deferred tax attributes based on facts and circumstances that existed as of the acquisition date and did not result from events subsequent to the acquisition date. The adjustments did not have a significant impact on Amgen’s results of operations during the year ended December 31, 2023, and would not have had a significant impact on prior-period results if the adjustments had been made as of the acquisition date. The following table summarizes the final total consideration and allocated acquisition date fair values of assets acquired and liabilities assumed, inclusive of measurement period adjustments (in millions): Amounts Cash and cash equivalents $ 86 Marketable securities 235 Inventories 41 Finite-lived intangible assets – developed-product-technology rights 3,499 Goodwill 649 Other liabilities, net (83) Deferred tax liability, net (502) Total assets acquired, net $ 3,925 The $3.9 billion total consideration consisted of (i) a $3.7 billion cash payment to outstanding common stockholders of ChemoCentryx and (ii) a $181 million cash payment to equity award holders of ChemoCentryx for services rendered prior to the acquisition date of October 20, 2022, under the ChemoCentryx equity award plans. The developed-product-technology rights acquired relates to TAVNEOS, which is approved in the United States and the EU for ANCA-associated vasculitis. The estimated fair values of $3.5 billion were determined by 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 developed-product-technology rights are being amortized on a straight-line basis over a weighted-average period of approximately 11 years using the straight-line method. The estimated fair value of the acquired inventory of $41 million was determined using the comparative sales method, which uses actual or expected selling prices of inventory as the base amount to which adjustments for selling effort and a profit on the buyer’s effort are applied. The inventory fair value adjustment was amortized as inventory turned over, which we estimated to be approximately 13 months. A net deferred tax liability of $502 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 $649 million was recorded as goodwill, which is not deductible for tax purposes. The goodwill value is primarily attributable to the expected synergies from the TAVNEOS asset. Acquisition of 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 bispecific T-cell engager 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 consolidated financial statements commencing on the acquisition date. Measurement period adjustments for the year ended December 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 during the year ended December 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 final 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 Consideration for this transaction comprised of (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 pretax cost of debt. See Note 18, Fair value measurement, for information regarding the estimated fair value of these obligations as of December 31, 2023. The estimated fair values of acquired IPR&D assets totaled $991 million, of which $784 million related to AMG 340, and the balance related to four separate preclinical oncology programs. See Note 13, Goodwill and other intangible assets, for information regarding the acquired IPR&D assets as of December 31, 2023. The R&D technology rights of $115 million related to Teneobio’s proprietary bispecific and multispecific antibody technologies; the amount is being amortized over 10 years by 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 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 represented expected synergies from both AMG 340 and the technologies acquired. During the third quarter of 2023, the development of AMG 340 acquired in connection with our Teneobio acquisition was terminated. See Note 13, Goodwill and other intangible assets, and Note 18, Fair value measurement, for additional information. Acquisition of Five Prime Therapeutics, Inc. On April 16, 2021, Amgen completed its acquisition of Five Prime for a total cash consideration of $1.6 billion, net of cash acquired. The purchase price was funded with cash on hand. This transaction was accounted for as an asset acquisition because substantially all the value of the assets acquired was concentrated in the intellectual property rights of bemarituzumab, a Phase 3 first-in-class program for gastric cancer. Five Prime’s operations have been included in our consolidated financial statements commencing after the acquisition date. We allocated the consideration to acquire Five Prime to the bemarituzumab IPR&D program of $1.5 billion, which was expensed immediately in Acquired IPR&D expense in the Consolidated Statements of Income; deferred tax assets of $177 million; and other net liabilities of $47 million. The acquired IPR&D expense was not tax deductible. Divestiture of Gensenta İlaç Sanayi ve Ticaret A.Ş. On November 2, 2022, we sold our shares in Gensenta, a subsidiary in Turkey, to Eczacıbaşı for net cash proceeds of approximately $130 million. The transaction was accounted for as a sale of a business and did not meet the criteria to be classified as discontinued operations. Upon closing of this transaction, net assets related to Gensenta of $86 million were divested, and during the year ended December 31, 2022, we recognized a loss on divestiture of $567 million recorded in Other operating expenses in the Consolidated Statements of Income, primarily due to the reclassification of $615 million of cumulative foreign currency translation losses from AOCI into earnings. See Note 17, Stockholders’ equity. |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2023 | |
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): Year ended December 31, 2023 Year ended December 31, 2022 Year ended December 31, 2021 U.S. ROW Total U.S. ROW Total U.S. ROW Total Prolia $ 2,733 $ 1,315 $ 4,048 $ 2,465 $ 1,163 $ 3,628 $ 2,150 $ 1,098 $ 3,248 ENBREL 3,650 47 3,697 4,044 73 4,117 4,352 113 4,465 Otezla 1,777 411 2,188 1,886 402 2,288 1,804 445 2,249 XGEVA 1,527 585 2,112 1,480 534 2,014 1,434 584 2,018 Repatha 793 842 1,635 608 688 1,296 557 560 1,117 Nplate 996 481 1,477 848 459 1,307 566 461 1,027 KYPROLIS 921 482 1,403 850 397 1,247 736 372 1,108 Aranesp 452 910 1,362 521 900 1,421 537 943 1,480 EVENITY 809 351 1,160 533 254 787 331 199 530 Vectibix 461 523 984 396 497 893 347 526 873 BLINCYTO 566 295 861 336 247 583 278 194 472 TEPEZZA (1) 441 7 448 — — — — — — KRYSTEXXA (1) 272 — 272 — — — — — — Other products (2) 3,874 1,389 5,263 3,776 1,444 5,220 4,194 1,516 5,710 Total product sales (3) 19,272 7,638 26,910 17,743 7,058 24,801 17,286 7,011 24,297 Other revenues 534 746 1,280 852 670 1,522 908 774 1,682 Total revenues $ 19,806 $ 8,384 $ 28,190 $ 18,595 $ 7,728 $ 26,323 $ 18,194 $ 7,785 $ 25,979 ____________ (1) TEPEZZA and KRYSTEXXA were acquired from the acquisition of Horizon on October 6, 2023, and includes product sales from the acquisition date through December 31, 2023. (2) Consists of product sales of our non-principal products, as well as sales prior to the divestiture of our Bergamo and Gensenta subsidiaries in the second quarter of 2023 and fourth quarter of 2022, respectively. (3) Hedging gains and losses, which are included in product sales, were not material for the years ended December 31, 2023, 2022 and 2021. In the United States, we sell primarily to pharmaceutical wholesale distributors that we use as the principal means of distributing our products to healthcare providers. Outside the United States, we sell principally to healthcare providers and/or pharmaceutical wholesale distributors depending on the distribution practice in each country. We monitor the financial condition of our larger customers and limit our credit exposure by setting credit limits and, in certain circumstances, by requiring letters of credit or obtaining credit insurance. We had product sales to three customers that individually accounted for more than 10% of total revenues for each of the years ended December 31, 2023, 2022 and 2021. For the year ended December 31, 2023, on a combined basis, these customers accounted for 79% of total gross revenues as shown in the following table. Certain information with respect to these customers was as follows (dollar amounts in millions): Years ended December 31, 2023 2022 2021 McKesson Corporation: Gross product sales $ 19,035 $ 17,305 $ 15,187 % of total gross revenues 33 % 35 % 33 % Cencora, Inc. (formerly AmerisourceBergen Corporation): Gross product sales $ 16,625 $ 15,443 $ 14,783 % of total gross revenues 29 % 31 % 32 % Cardinal Health, Inc.: Gross product sales $ 9,775 $ 8,319 $ 7,681 % of total gross revenues 17 % 16 % 17 % As of both December 31, 2023 and 2022, amounts due from these three customers each exceeded 10% of gross trade receivables and accounted for 75% of net trade receivables on a combined basis. As of December 31, 2023 and 2022, 22% and 26%, respectively, of net trade receivables were due from customers located outside the United States, the majority of which were from Europe. Our total allowance for doubtful accounts as of December 31, 2023 and 2022, was not material. |
Stock-based compensation
Stock-based compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based compensation | Stock-based compensation Our Amended 2009 Plan authorizes for issuance to employees of Amgen and nonemployee members of our Board of Directors shares of our common stock pursuant to grants of equity-based awards, including RSUs, stock options and performance units. The pool of shares available under the Amended 2009 Plan is reduced by one share for each stock option granted and by 1.9 shares for other types of awards granted, including full-value awards. In general, if any shares subject to an award granted under the Amended 2009 Plan expire or become forfeited, terminated or canceled without the issuance of shares, the shares subject to such awards are added back into the authorized pool on the same basis that they were removed. In addition, under the Amended 2009 Plan, shares withheld to pay for minimum statutory tax obligations with respect to full-value awards are added back into the authorized pool on the basis of 1.9 shares. As of December 31, 2023, the Amended 2009 Plan provides for future grants and/or issuances of up to approximately 12 million shares of our common stock. Stock-based awards under our employee compensation plans are made with newly issued shares reserved for this purpose. The following table reflects the components of stock-based compensation expense recognized in our Consolidated Statements of Income (in millions): Years ended December 31, 2023 2022 2021 RSUs $ 309 $ 227 $ 183 Performance units 121 132 121 Stock options 43 42 37 Total stock-based compensation expense, pretax 473 401 341 Tax benefit from stock-based compensation expense (102) (86) (74) Total stock-based compensation expense, net of tax $ 371 $ 315 $ 267 Restricted stock units and stock options Eligible employees generally receive an annual grant of RSUs and, for certain executive-level employees, stock options, with the size and type of award generally determined by the employee’s salary grade and performance level. Certain management and professional-level employees typically receive RSU grants upon commencement of employment. Nonemployee members of our Board of Directors also receive an annual grant of RSUs. Our RSU and stock option grants provide for accelerated or continued vesting in certain circumstances as defined in the plans and related grant agreements, including upon death, disability, termination in connection with a change in control and the retirement of employees who meet certain service and/or age requirements. RSUs and stock options generally vest in equal amounts on the second, third and fourth anniversaries of the grant date. RSUs accrue dividend equivalents, which are typically payable in shares only when and to the extent the underlying RSUs vest and are issued to the recipient. Restricted stock units The grant date fair value of an RSU equals the closing price of our common stock on the grant date, as RSUs accrue dividend equivalents during their vesting period, except with respect to Horizon replacement RSUs, discussed below. The weighted-average grant date fair values per unit of RSUs granted (excluding replacement awards granted to Horizon RSU holders) during the years ended December 31, 2023, 2022 and 2021, were $237.70, $234.47 and $233.10, respectively. The following table summarizes information regarding our RSUs: Year ended December 31, 2023 Units Weighted-average Balance nonvested as of December 31, 2022 2.8 $ 228.71 Granted 1.0 $ 237.70 Replacement awards granted - Horizon acquisition 1.7 $ 267.47 Vested (1.3) $ 231.81 Forfeited (0.3) $ 234.35 Balance nonvested as of December 31, 2023 3.9 $ 246.43 Holders of Horizon unvested RSUs were granted replacement Amgen RSUs under the original terms of the awards in connection with the Horizon acquisition based on the terms of the transaction. See Note 3, Acquisitions and divestitures. Subsequent to the acquisition, $42 million of the RSUs were accelerated and cash settled. The total grant date fair values of RSUs that vested during the years ended December 31, 2023, 2022 and 2021, were $309 million, $192 million and $166 million, respectively. Stock options The exercise price of stock options is set as the closing price of our common stock on the grant date, and the related number of shares granted is fixed at that point in time. Awards expire 10 years from the date of grant. We use the Black–Scholes option valuation model to estimate the grant date fair value of stock options. The weighted-average assumptions used in the option valuation model and the resulting weighted-average grant date fair values of stock options granted were as follows: Years ended December 31, 2023 2022 2021 Closing price of our common stock on grant date $ 235.97 $ 230.92 $ 237.17 Expected volatility (average of implied and historical volatility) 23.3 % 24.5 % 25.6 % Expected life (in years) 5.7 5.7 5.7 Risk-free interest rate 3.4 % 2.8 % 1.0 % Expected dividend yield 3.5 % 3.3 % 2.9 % Fair value of stock options granted $ 41.86 $ 42.43 $ 40.43 The following table summarizes information regarding our stock options: Year ended December 31, 2023 Options Weighted- Weighted- Aggregate Balance unexercised as of December 31, 2022 5.3 $ 207.29 Granted 1.1 $ 235.97 Exercised (0.4) $ 182.33 Expired/forfeited (0.1) $ 234.10 Balance unexercised as of December 31, 2023 5.9 $ 213.90 6.7 $ 438 Vested or expected to vest as of December 31, 2023 5.7 $ 213.15 6.7 $ 427 Exercisable as of December 31, 2023 2.8 $ 190.59 5.0 $ 271 The total intrinsic values of options exercised during the years ended December 31, 2023, 2022 and 2021, were $33 million, $67 million and $56 million, respectively. The actual tax benefits realized from tax deductions from option exercises during the years ended December 31, 2023, 2022 and 2021, were $7 million, $14 million and $12 million, respectively. As of December 31, 2023, $498 million of unrecognized compensation cost was related to nonvested RSUs and unvested stock options, which is expected to be recognized over a weighted-average period of 1.6 years. Performance units Certain management-level employees also receive annual grants of performance units, which give the recipient the right to receive common stock that is contingent upon achievement of specified preestablished goals over the performance period, which is generally three years. The performance goals for the units granted during the years ended December 31, 2023, 2022 and 2021, which are accounted for as equity awards, are based on (i) Amgen’s stockholder return compared with a comparator group of companies, which are considered market conditions and are therefore reflected in the grant date fair values of the units, and (ii) Amgen’s stand-alone financial performance measures, which are considered performance conditions. The expense recognized for awards is based on the grant date fair value of a unit multiplied by the number of units expected to be earned with respect to the related performance conditions, net of estimated forfeitures. Depending on the outcome of these performance goals, a recipient may ultimately earn a number of units greater or less than the number of units granted. Shares of our common stock are issued on a one-for-one basis for each performance unit earned. In general, performance unit awards vest at the end of the performance period. The performance award program provides for accelerated or continued vesting in certain circumstances as defined in the plan, including upon death, disability, a change in control and retirement of employees who meet certain service and/or age requirements. Performance units accrue dividend equivalents that are typically payable in shares only when and to the extent the underlying performance units vest and are issued to the recipient, including with respect to market and performance conditions that affect the number of performance units earned. We use a payout simulation model to estimate the grant date fair value of performance units. The weighted-average assumptions used in the payout simulation model and the resulting weighted-average grant date fair values of performance units granted were as follows: Years ended December 31, 2023 2022 2021 Closing price of our common stock on grant date $ 235.97 $ 230.92 $ 239.64 Volatility 21.6 % 28.1 % 29.3 % Risk-free interest rate 3.7 % 0.3 % 0.3 % Fair value of units granted $ 252.49 $ 247.48 $ 254.68 The payout simulation model assumes correlations of returns of the stock prices of our common stock and the common stocks of the comparator groups of companies and stock price volatilities of the comparator groups of companies to simulate stockholder returns over the performance periods and their resulting impact on the payout percentages based on the contractual terms of the performance units. As of December 31, 2023 and 2022, 1.7 million and 1.6 million performance units were outstanding, respectively, with weighted-average grant date fair values per unit of $251.41 and $250.27 per unit, respectively. During the year ended December 31, 2023, 0.7 million performance units with a weighted-average grant date fair value per unit of $252.49 were granted, and 0.2 million performance units with a weighted-average grant date fair value per unit of $251.38 were forfeited. The total fair values of performance units paid during the years ended December 31, 2023, 2022 and 2021, were $109 million, $150 million and $149 million, respectively, based on the number of performance units earned multiplied by the closing stock price of our common stock on the last day of the performance period. As of December 31, 2023, $146 million of unrecognized compensation cost was related to nonvested performance units, which is expected to be recognized over a weighted-average period of one year. |
Defined contribution plan
Defined contribution plan | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Defined contribution plan | Defined contribution plan The Company has defined contribution plans to which certain employees of the Company and participating subsidiaries may defer compensation for income tax purposes. Participants are eligible to receive matching contributions based on their contributions, in addition to other Company contributions. Defined contribution plan expenses were $311 million, $243 million and $279 million for the years ended December 31, 2023, 2022 and 2021, respectively. |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes Income before income taxes included the following (in millions): Years ended December 31, 2023 2022 2021 Domestic $ 4,047 $ 3,026 $ 1,850 Foreign 3,808 4,320 4,851 Total income before income taxes $ 7,855 $ 7,346 $ 6,701 The provision for income taxes included the following (in millions): Years ended December 31, 2023 2022 2021 Current provision: Federal $ 1,524 $ 1,721 $ 865 State 43 44 18 Foreign 786 304 359 Total current provision 2,353 2,069 1,242 Deferred benefit: Federal (1,124) (1,185) (308) State (25) (27) (9) Foreign (66) (63) (117) Total deferred benefit (1,215) (1,275) (434) Total provision for income taxes $ 1,138 $ 794 $ 808 Deferred income taxes reflect the tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, tax credit carryforwards and the tax effects of NOL carryforwards. As of December 31, 2022, we elected to establish deferred taxes with respect to the U.S. minimum tax on the earnings of our foreign subsidiaries for the reversal of temporary items in future years. Significant components of our deferred tax assets and liabilities were as follows (in millions): December 31, 2023 2022 Deferred income tax assets: NOL and credit carryforwards $ 1,465 $ 1,344 Accrued expenses 668 584 Capitalized research and development expenses 1,333 515 Investments — 270 Expenses capitalized for tax 210 211 Earnings of foreign subsidiaries 1,260 192 Stock-based compensation 159 104 Other 416 317 Total deferred income tax assets 5,511 3,537 Valuation allowance (957) (718) Net deferred income tax assets 4,554 2,819 Deferred income tax liabilities: Acquired intangible assets (3,028) (1,238) Debt (268) (272) Fixed assets (140) (112) Fair value of acquired inventory (349) (5) Investments (99) — Other (224) (249) Total deferred income tax liabilities (4,108) (1,876) Total deferred income taxes, net $ 446 $ 943 The Company has determined that unremitted foreign earnings are not considered indefinitely reinvested to the extent foreign earnings can be distributed without a significant tax cost. For the amount considered to be indefinitely reinvested, it is not practicable to determine the amount of the related deferred income tax liability due to the complexities of the tax laws and assumptions we would have to make. Valuation allowances are provided to reduce the amounts of our deferred tax assets to an amount that is more likely than not to be realized based on an assessment of positive and negative evidence, including estimates of future taxable income necessary to realize future deductible amounts. The valuation allowance increased in 2023, primarily driven by the Company’s expectation that certain state R&D credits will expire unused as well as acquired state credits and state NOLs not expected to be realized. As of December 31, 2023, we had $201 million of federal tax credit carryforwards available to reduce future federal income taxes and have provided a valuation allowance for $19 million of those federal tax credit carryforwards. The federal tax credit carryforwards expire between 2024 and 2044. We had $1.1 billion of state tax credit carryforwards available to reduce future state income taxes and have provided a valuation allowance for $971 million of those state tax credit carryforwards. We had $84 million of tax credit carryforwards related to our foreign jurisdictions available to offset future foreign income taxes for which we have provided $59 million valuation allowance. As of December 31, 2023, we had $869 million of federal NOL carryforwards available to reduce future federal income taxes and have provided no valuation allowance on those federal NOL carryforwards. Additionally, $691 million of those federal NOL carryforwards have no expiration; the remainder begin to expire between 2025 and 2037. We had $872 million of state NOL carryforwards available to reduce future state income taxes and have provided a valuation allowance for $738 million of those state NOL carryforwards. We had $1.3 billion of foreign NOL carryforwards available to reduce future foreign income taxes and have provided a valuation allowance for $238 million of those foreign NOL carryforwards. For the foreign NOLs with no valuation allowance provided, $243 million have no expiration; and the remainder will expire between 2024 and 2033. The reconciliations of the total gross amounts of UTBs were as follows (in millions): Years ended December 31, 2023 2022 2021 Beginning balance $ 3,770 $ 3,546 $ 3,352 Additions based on tax positions related to the current year 196 151 171 Additions based on tax positions related to prior years 56 90 35 Reductions for tax positions of prior years — (14) (4) Reductions for expiration of statute of limitations (4) (3) — Settlements (6) — (8) Ending balance $ 4,012 $ 3,770 $ 3,546 Substantially all of the UTBs as of December 31, 2023, if recognized, would affect our effective tax rate . As a result, we remeasured our UTBs accordingly. Interest and penalties related to UTBs are included in our provision for income taxes. During the years ended December 31, 2023, 2022 and 2021, we recognized $287 million, $189 million and $98 million, respectively, of interest and penalties through the income tax provision in the Consolidated Statements of Income. The increase in interest expense for the year ended December 31, 2023, was primarily due to higher interest rates during 2023 and acquired positions. As of December 31, 2023 and 2022, accrued interest and penalties associated with UTBs were $1.4 billion and $1.1 billion, respectively. The reconciliations between the federal statutory tax rate applied to income before income taxes and our effective tax rate were as follows: Years ended December 31, 2023 2022 2021 Federal statutory tax rate 21.0 % 21.0 % 21.0 % Foreign earnings (5.1) % (5.6) % (7.8) % Foreign-derived intangible income (1.3) % (1.3) % (1.0) % Credits, Puerto Rico excise tax 0.3 % (2.8) % (3.4) % Interest on uncertain tax positions 2.6 % 1.9 % 1.1 % Credits, primarily federal R&D (3.5) % (2.0) % (2.1) % Acquisition IPR&D — % — % 4.9 % Other, net 0.5 % (0.4) % (0.6) % Effective tax rate 14.5 % 10.8 % 12.1 % The effective tax rates for the years ended December 31, 2023, 2022 and 2021, differ from the federal statutory rate primarily due to impacts of the jurisdictional mix of income and expenses. Substantially all of the benefit to our effective tax rate from foreign earnings results from locations where the Company has significant manufacturing operations, including Singapore, Ireland and Puerto Rico, a territory of the United States that is treated as a foreign jurisdiction for U.S. tax purposes. Our operations in Puerto Rico are subject to tax incentive grants through 2050. Additionally, the Company’s operations conducted in Singapore are subject to a tax incentive grant through 2036. Our foreign earnings are also subject to U.S. tax at a reduced rate of 10.5%. We are no longer subject to a 4% excise tax in the U.S. territory of Puerto Rico on the gross intercompany purchase price of goods and services from our manufacturer in Puerto Rico. As of January 1, 2023, we qualify for and are subject to the alternative income tax rate on industrial development income of our Puerto Rico affiliate. In the United States, this income tax qualifies for foreign tax credits. Both this income tax and the associated foreign tax credits are generally recognized in our provision for income taxes. We accounted for the 2022 excise tax that was capitalized in Inventories as an expense in Cost of sales when the related products were sold in 2023, and a foreign tax credit was not recognized in 2023 with respect to the excise tax. Income taxes paid during the years ended December 31, 2023, 2022 and 2021, were $3.4 billion, $2.4 billion and $1.9 billion, respectively. 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 2010–2012, 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 the years 2010–2012 that we received in May and July 2021, which seek to increase our U.S. taxable income for the years 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 the years 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 2013–2015, 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 2010–2012. We disagreed with the proposed adjustments and calculations and pursued resolution with the IRS appeals office but were unable to reach resolution. In July 2022, we filed a petition in the U.S. Tax Court to contest a Notice for the years 2013–2015 that we previously reported receiving in April 2022 that seeks to increase our U.S. taxable income for the years 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 the years 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 and 2013–2015 Notices through the judicial process. The two cases were consolidated in the U.S. Tax Court on December 19, 2022. On February 10, 2023, the U.S. Tax Court entered an order setting a trial date of November 4, 2024. We are currently under examination by the IRS for the years 2016–2018 with respect to issues similar to those for the 2010 through 2015 period. In addition, we are under examination by a number of state and foreign tax jurisdictions. Final resolution of these complex matters is not likely within the next 12 months. We continue to 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 consolidated financial statements. We are no longer subject to U.S. federal income tax examinations for years ended on or before December 31, 2009. |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2023 | |
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): Years ended December 31, 2023 2022 2021 Income (Numerator): Net income for basic and diluted EPS $ 6,717 $ 6,552 $ 5,893 Shares (Denominator): Weighted-average shares for basic EPS 535 538 570 Effect of dilutive securities 3 3 3 Weighted-average shares for diluted EPS 538 541 573 Basic EPS $ 12.56 $ 12.18 $ 10.34 Diluted EPS $ 12.49 $ 12.11 $ 10.28 For each of the three years ended December 31, 2023, the number of antidilutive employee stock-based awards excluded from the computation of diluted EPS was not significant. |
Collaborations
Collaborations | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Collaborations | Collaborations A collaborative arrangement is a contractual arrangement that involves a joint operating activity. Such arrangements involve two or more parties that are both (i) active participants in the activity and (ii) exposed to significant risks and rewards dependent on the commercial success of the activity. From time to time, we enter into collaborative arrangements for the R&D, manufacture and/or commercialization of products and/or product candidates. These collaborations generally provide for nonrefundable upfront license fees, development and commercial-performance milestone payments, cost sharing, royalties and/or profit sharing. Our collaboration arrangements are performed with no guarantee of either technological or commercial success, and each arrangement is unique in nature. See Note 1, Summary of significant accounting policies, for additional discussion of revenues recognized under these types of arrangements. Operating expenses for costs incurred pursuant to these arrangements are reported in their respective expense line items in the Consolidated Statements of Income, net of any payments due to or reimbursements due from our collaboration partners, with such reimbursements being recognized at the time the party becomes obligated to pay. Our significant arrangements are discussed below. BeiGene, Ltd. In January 2020, we acquired an equity stake in BeiGene for approximately $2.8 billion in cash as part of a collaboration to expand our oncology presence in China. For additional information regarding our equity investment in BeiGene, see Note 10, Investments. Under the collaboration, BeiGene began selling XGEVA in 2020, BLINCYTO in 2021 and KYPROLIS in 2022 in China, and Amgen shares profits and losses equally during the initial product-specific commercialization periods; thereafter, product rights may revert to Amgen, and Amgen will pay royalties to BeiGene on sales in China of such products for a specified period. Amgen manufactures and supplies the collaboration products to BeiGene. In addition, we jointly develop a portion of our oncology portfolio with BeiGene, which shares in global R&D costs by providing cash and development services of up to $1.25 billion. Upon regulatory approval, BeiGene will assume commercialization rights in China for a specified period, and Amgen and BeiGene will share profits equally until certain of these product rights revert to Amgen. Upon return of the product rights, Amgen will pay royalties to BeiGene on sales in China for a specified period. For product sales outside China, Amgen will also pay royalties to BeiGene. During the years ended December 31, 2023, 2022 and 2021, net costs recovered from BeiGene for oncology product candidates were $109 million, $199 million and $220 million, respectively, and were recorded as an offset to R&D expense in the Consolidated Statements of Income. During the years ended December 31, 2023, 2022 and 2021, product sales from Amgen to BeiGene under the collaboration were $125 million, $64 million and $72 million, respectively, and were recorded in Product sales in the Consolidated Statements of Income. During the years ended December 31, 2023, 2022 and 2021, profit and loss share expenses related to the initial product-specific commercialization period were $40 million, $53 million and $64 million, respectively, and were recorded in SG&A expense in the Consolidated Statements of Income. Amounts owed from BeiGene for product sales were $16 million and $6 million as of December 31, 2023 and 2022, respectively, which are included in Trade receivables, net, in the Consolidated Balance Sheets. Net amounts owed from BeiGene for cost recoveries and profit and loss share payments were $44 million and $47 million as of December 31, 2023 and 2022, respectively, which are included in Other current assets in the Consolidated Balance Sheets. AstraZeneca plc We are in a collaboration with AstraZeneca for the development and commercialization of TEZSPIRE. Under our collaboration, both companies share global costs, profits and losses equally after payment by AstraZeneca of a mid-single-digit royalty to Amgen. AstraZeneca leads global development, and both Amgen and AstraZeneca jointly commercialize TEZSPIRE in North America. In North America, Amgen, as the principal, recognizes product sales of TEZSPIRE in the United States, and AstraZeneca, as the principal, recognizes product sales of TEZSPIRE in Canada. AstraZeneca leads commercialization for TEZSPIRE outside North America. Amgen manufactures and supplies TEZSPIRE worldwide. During the years ended December 31, 2023, 2022 and 2021, net costs due to AstraZeneca for global development were $77 million, $74 million and $49 million, respectively, and were recorded in R&D expense in the Consolidated Statements of Income. During the years ended December 31, 2023, 2022 and 2021, net costs due to AstraZeneca for global commercialization were $73 million, $60 million and $39 million, respectively, and were recorded in SG&A expense in the Consolidated Statements of Income. During the years ended December 31, 2023 and 2022, global profit and loss share expenses were $310 million and $119 million, respectively, and were recorded primarily in Cost of sales in the Consolidated Statements of Income. TEZSPIRE launched in the United States in January 2022. UCB We are in a collaboration with UCB for the development and commercialization of EVENITY. Under our collaboration, UCB has rights to lead commercialization for EVENITY in most countries in Europe. Amgen, as the principal, leads commercialization for EVENITY and recognizes product sales in all other territories, including the United States. Global development costs and commercialization profits and losses related to the collaboration are shared equally. Amgen manufactures and supplies EVENITY worldwide. During the years ended December 31, 2023, 2022 and 2021, global profit and loss share expenses were $396 million, $255 million and $186 million, respectively, and were recorded in Cost of sales in the Consolidated Statements of Income. Net costs recovered from and due to UCB during the years ended December 31, 2023, 2022 and 2021, were not material. Novartis Pharma AG We are in a collaboration with Novartis to jointly develop and commercialize Aimovig. On January 31, 2022, we modified the terms of the collaboration. Effective January 1, 2022, in the United States, Novartis no longer collaborates with Amgen, shares Aimovig commercialization costs or is required to pay milestones, and Amgen no longer pays royalties to Novartis on U.S. sales of Aimovig. Novartis continues to hold global co-development rights and exclusive commercial rights outside the United States and Japan for Aimovig. Amgen and Novartis share global development expenses, and Novartis pays Amgen double-digit royalties on net sales of the product outside the United States and Japan. Amgen manufactures and supplies Aimovig worldwide. During the years ended December 31, 2023 and 2022, net costs recovered from Novartis for migraine products were $42 million and $53 million, respectively, and were recorded in R&D expense in the Consolidated Statements of Income. During the year ended December 31, 2021, net costs recovered from Novartis for migraine products were $160 million and were recorded primarily in SG&A expense in the Consolidated Statements of Income. During the year ended December 31, 2021, royalties due to Novartis for Aimovig were $116 million and were recorded in Cost of sales in the Consolidated Statements of Income. During the years ended December 31, 2023, 2022 and 2021, royalties due from Novartis for Aimovig were not material. Kyowa Kirin Co., Ltd. We are in a collaboration and licensing agreement with Kyowa Kirin to jointly develop and commercialize rocatinlimab, an anti-OX40 fully human monoclonal antibody, worldwide, except in Japan. Rocatinlimab is for the treatment of atopic dermatitis, with potential for treatment of other autoimmune diseases. Under the terms of the agreement, we lead the global development, manufacture and commercialization of rocatinlimab, except in Japan. Kyowa Kirin will co-promote rocatinlimab with Amgen in the United States and have opt in rights to co-promote rocatinlimab in various other markets outside the United States, including in Europe and Asia. We made an upfront payment of $400 million to Kyowa Kirin that was recognized in R&D expense in the third quarter of 2021. Amgen and Kyowa Kirin share equally the global development costs, except in Japan, and the U.S. commercialization costs. Outside the United States and Japan, any commercialization costs incurred by Kyowa Kirin will be reimbursed by Amgen. We may also be required to make milestone payments of up to $850 million contingent upon the achievement of certain regulatory events and commercial thresholds. We will also pay Kyowa Kirin significant double-digit royalties on global sales, except in Japan. During the year ended December 31, 2023, net costs recovered from Kyowa Kirin were $93 million and were recorded in R&D expense in the Consolidated Statements of Income. Net costs due to or recovered from Kyowa Kirin during the years ended December 31, 2022 and 2021, were not material. Other In addition to the collaborations discussed above, we have various other collaborations that are not individually significant to our business at this time. Pursuant to the terms of those agreements, we may be required to pay additional amounts, or we may receive additional amounts upon the achievement of various development and commercial milestones that in the aggregate could be significant. We may also incur or have reimbursed to us significant R&D costs if a related product candidate were to advance to late-stage clinical trials. In addition, if any products related to these collaborations are approved for sale, we may be required to pay significant royalties, or we may receive significant royalties on future sales. The payments of these amounts, however, are contingent upon the occurrence of various future events that have high degrees of uncertainty of occurrence. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Available-for-sale investments The amortized cost, gross unrealized gains, gross unrealized losses and fair values of interest-bearing securities, which are considered available-for-sale, by type of security were as follows (in millions): Types of securities as of December 31, 2023 Amortized Gross Gross Fair U.S. Treasury bills $ — $ — $ — $ — Money market mutual funds 10,266 — — 10,266 Other short-term interest-bearing securities 138 — — 138 Total available-for-sale investments $ 10,404 $ — $ — $ 10,404 Types of securities as of December 31, 2022 Amortized Gross Gross Fair U.S. Treasury bills $ 1,676 $ — $ — $ 1,676 Money market mutual funds 2,659 — — 2,659 Other short-term interest-bearing securities — — — — Total available-for-sale investments $ 4,335 $ — $ — $ 4,335 The fair values of available-for-sale investments by location in the Consolidated Balance Sheets were as follows (in millions): December 31, Consolidated Balance Sheets locations 2023 2022 Cash and cash equivalents $ 10,404 $ 2,659 Marketable securities — 1,676 Total available-for-sale investments $ 10,404 $ 4,335 Cash and cash equivalents in the above table excludes bank account cash of $540 million and $4,970 million as of December 31, 2023 and 2022, respectively. All interest-bearing securities as of December 31, 2023 and 2022, mature in one year or less. For the years ended December 31, 2023, 2022 and 2021, interest income on these investments were $1.2 billion, $127 million and $11 million, respectively. For the years ended December 31, 2023, 2022 and 2021, realized gains and losses on interest-bearing securities were not material. Realized gains and losses on interest-bearing securities are recorded in Other income (expense), net, in the Consolidated Statements of Income. The cost of securities sold is based on the specific-identification method. The primary objective of our investment portfolio is to maintain safety of principal, prudent levels of liquidity and acceptable levels of risk. Our investment policy limits interest-bearing security investments to certain types of debt and money market instruments issued by institutions with investment-grade credit ratings, and it places restrictions on maturities and concentration by asset class and issuer. Equity securities BeiGene, Ltd. On January 2, 2020, we acquired a 20.5% ownership interest in BeiGene for $2.8 billion, of which $2.6 billion was attributed to the fair value of equity securities upon closing, with the remainder attributed to prepaid R&D. Our equity investment in BeiGene is included in Other noncurrent assets in the Consolidated Balance Sheets. The fair value of equity securities acquired exceeded our proportionate share of the carrying value of BeiGene’s underlying net assets by $2.4 billion, and we began amortizing the intangible assets that gave rise to this basis difference over their useful lives. Effective January 30, 2023, we relinquished our right to appoint a director to BeiGene’s Board of Directors. We no longer have the ability to exert significant influence over BeiGene. As a result, in the first quarter of 2023, we began to account for our ownership interest as an equity security with a readily determinable fair value, with changes in fair value recorded in Other income (expense), net, in the Consolidated Statements of Income. See Note 18, Fair value measurement. During the year ended December 31, 2023, we recognized an unrealized gain of $1.2 billion recorded in Other income (expense), net, in the Consolidated Statements of Income. As of December 31, 2023, the carrying and fair value of our investment in BeiGene was $3.4 billion and was included in Other noncurrent assets in the Consolidated Balance Sheets. During the years ended December 31, 2022 and 2021, under the equity method of accounting, the carrying value of the investment was reduced by our share of BeiGene’s net losses of $394 million and $265 million, respectively, and amortization of the basis difference of $190 million and $172 million, respectively. During the year ended December 31, 2021, we increased the carrying value by $50 million as a result of our purchase of additional shares of BeiGene; we did not purchase additional shares of BeiGene during the years ended December 31, 2023 and 2022 . In addition, during the years ended December 31, 2022 and 2021 , the carrying value increased by $11 million and $265 million, respectively, from the impact of other BeiGene ownership transactions. As of December 31, 2022, the carrying and fair values of our investment in BeiGene were $2.2 billion and $4.2 billion, respectively, and our ownership percentage was 18.2%. For information on a collaboration agreement we entered into with BeiGene in connection with this investment, see Note 9, Collaborations. Other equity securities Excluding our equity investments in BeiGene and Neumora (discussed below), we held investments in other equity securities with readily determinable fair values (publicly traded securities) of $494 million and $480 million as of December 31, 2023 and 2022, respectively, which are included in Other noncurrent assets in the Consolidated Balance Sheets. For the years ended December 31, 2023, 2022 and 2021, net unrealized gains and losses on publicly traded securities were a net gain of $98 million, a net loss of $165 million and a net gain of $161 million, respectively. Realized gains and losses on publicly traded securities for the years ended December 31, 2023, 2022 and 2021, were not material. We held investments of $309 million and $233 million in equity securities without readily determinable fair values as of December 31, 2023 and 2022, respectively, which are included in Other noncurrent ass ets in the Consolidated Balance Sheets. For the years ended December 31, 2023 and 2022 , gains due to upward adjustments and gains realized upon dispositions of these securities were not material. For the year ended December 31, 2021 , gains due to upward adjustments were $152 million, and gains realized on the dispositions of these securities were $41 million. For the years ended December 31, 2023 and 2021 , downward adjustments were not material. For the year ended December 31, 2022, downward adjustments to the carrying values of these securities were $67 million. Adjustments were based on observable price transactions. Equity Method Investments Neumora Therapeutics, Inc. On September 30, 2021, we acquired an approximately 25.9% ownership interest in Neumora, a then privately held company, for $257 million, which is included in Other noncurrent assets in the Consolidated Balance Sheets, in exchange for a $100 million cash payment and $157 million in noncash consideration primarily related to future services. During the third quarter of 2023, we made an additional $30 million equity investment in Neumora in connection with their initial public stock offering, and consequently, our investment now has a readily determinable fair value. Although our equity investment provides us with the ability to exercise significant influence over Neumora and therefore qualifies us for the equity method of accounting, we have elected the fair value option to account for our investment. Under the fair value option, changes in the fair value of the investment are recognized through earnings in Other income (expense), net, in the Consolidated Statements of Income each reporting period. We believe the fair value option best reflects the economics of the underlying transaction. As of December 31, 2023 and 2022, our ownership interests in Neumora were approximately 23.2% and 24.9%, respectively, and the fair values of our investment were $603 million and $335 million, respectively. During the years ended December 31, 2023, 2022 and 2021 , we recognized gains of $238 million and $105 million and a loss of $37 million, respectively, for the change in fair values in Other income (expense), net, in the Consolidated Statements of Income. For information on determination of fair values, see Note 18, Fair value measurement. Limited partnerships We held limited partnership investments |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following (in millions): December 31, 2023 2022 Raw materials $ 993 $ 828 Work in process 5,747 3,098 Finished goods 2,778 1,004 Total inventories (1) $ 9,518 $ 4,930 ____________ (1) The increase to Inventories was primarily due to the estimated fair value of the acquired inventory from the Horizon acquisition. See Note 3, Acquisitions and divestitures. |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, plant and equipment | Property, plant and equipment Property, plant and equipment consisted of the following (dollar amounts in millions): December 31, Useful life (in years) 2023 2022 Land — $ 339 $ 292 Buildings and improvements 10-40 4,507 4,201 Manufacturing equipment 8-12 3,220 3,105 Laboratory equipment 8-12 1,346 1,277 Fixed equipment 12 2,526 2,478 Capitalized software 3-5 1,320 1,215 Other 5-10 941 929 Construction in progress — 1,550 1,213 Property, plant and equipment, gross 15,749 14,710 Less accumulated depreciation and amortization (9,808) (9,283) Property, plant and equipment, net $ 5,941 $ 5,427 During the years ended December 31, 2023, 2022 and 2021, we recognized depreciation and amortization expense associated with our property, plant and equipment of $685 million, $661 million and $644 million, respectively. Geographic information Certain geographic information with respect to property, plant and equipment, net (long-lived assets), was as follows (in millions): December 31, 2023 2022 U.S. $ 3,658 $ 3,154 Puerto Rico 1,148 1,247 ROW 1,135 1,026 Total property, plant and equipment, net $ 5,941 $ 5,427 |
Goodwill and intangible assets
Goodwill and intangible assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and other intangible assets | Goodwill and other intangible assets Goodwill The changes in the carrying amounts of goodwill were as follows (in millions): December 31, 2023 2022 Beginning balance $ 15,529 $ 14,890 Changes to goodwill resulting from acquisitions and divestitures, net (1) 3,089 651 Currency translation adjustments 11 (12) Ending balance $ 18,629 $ 15,529 ____________ (1) For 2023, the increase to Goodwill was primarily due to goodwill resulting from the acquisition of Horizon. For 2022, the increase to goodwill was due to goodwill resulting from the acquisition of ChemoCentryx, changes to the acquisition date fair values of net assets acquired in the acquisition of Teneobio and the nonstrategic Gensenta divestiture. See Note 3, Acquisitions and divestitures. Other intangible assets Other intangible assets consisted of the following (in millions): December 31, 2023 2022 Gross Accumulated Other intangible Gross Accumulated Other intangible Finite-lived intangible assets: Developed-product-technology rights $ 48,631 $ (18,049) $ 30,582 $ 29,028 $ (15,045) $ 13,983 Licensing rights 3,865 (3,265) 600 3,864 (3,123) 741 Marketing-related rights 1,339 (1,264) 75 1,326 (1,167) 159 R&D technology rights 1,394 (1,228) 166 1,378 (1,190) 188 Total finite-lived intangible assets 55,229 (23,806) 31,423 35,596 (20,525) 15,071 Indefinite-lived intangible assets: IPR&D 1,218 — 1,218 1,009 — 1,009 Total other intangible assets $ 56,447 $ (23,806) $ 32,641 $ 36,605 $ (20,525) $ 16,080 Developed-product-technology rights consists of rights related to marketed products acquired in acquisitions. Licensing rights consists primarily of contractual rights acquired in acquisitions to receive future milestone, royalty and profit-sharing payments; capitalized payments to third parties for milestones related to regulatory approvals to commercialize products; and up-front payments associated with royalty obligations for marketed products. Marketing-related rights consists primarily of rights related to the sale and distribution of marketed products. R&D technology rights pertains to technologies used in R&D that have alternative future uses. Developed-product-technology rights include assets acquired with the Horizon and ChemoCentryx acquisitions. IPR&D includes assets acquired with the Horizon and Teneobio acquisitions. R&D technology rights and licensing rights includes assets acquired with the Teneobio acquisition. See Note 3, Acquisitions and divestitures. 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. All IPR&D projects have major risks and uncertainties associated with the timely and successful completion of the development and commercialization of product candidates, including our ability to confirm safety and efficacy based on data from clinical trials, our ability to obtain necessary regulatory approvals and our ability to successfully complete these tasks within budgeted costs. We are not permitted to market a human therapeutic without obtaining regulatory approvals, and such approvals require the completion of clinical trials that demonstrate that a product candidate is safe and effective. In addition, the availability and extent of coverage and reimbursement from third-party payers, including government healthcare programs and private insurance plans as well as competitive product launches, affect the revenues a product can generate. Consequently, the eventual realized values, if any, of acquired IPR&D projects may vary from their estimated fair values. We review IPR&D projects for impairment annually, whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable and upon the establishment of technological feasibility or regulatory approval. During the third quarter of 2023, the development of AMG 340 acquired in connection with our Teneobio acquisition was terminated, resulting in an impairment charge of $783 million, which was recognized in Other operating expenses During the years ended December 31, 2023, 2022 and 2021, we recognized amortization associated with our finite-lived intangible assets of $3.2 billion, $2.6 billion and $2.6 billion, respectively. Amortization of intangible assets is included primarily in Cost of sales in the Consolidated Statements of Income. The total estimated amortization for our finite-lived intangible assets for the years ending December 31, 2024, 2025, 2026, 2027 and 2028, are $4.8 billion, $4.5 billion, $3.9 billion, $3.9 billion and $2.9 billion, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases We lease certain facilities and equipment related primarily to R&D, administrative and commercial activities. Leases with terms of 12 months or less are expensed as incurred and are not recorded in the Consolidated Balance Sheets. Most leases include one or more options to renew, with renewal terms that may extend the lease term up to seven years. The exercise of lease renewal options is at our sole discretion. In addition, some of our lease agreements include rental payments adjusted periodically for inflation. Our lease agreements neither contain residual value guarantees nor impose significant restrictions or covenants. We sublease certain real estate to third parties. Our sublease portfolio consists of operating leases from former R&D and administrative space. The following table summarizes information related to our leases, all of which are classified as operating, included in our Consolidated Balance Sheets (in millions): December 31, Consolidated Balance Sheets locations 2023 2022 Assets: Other noncurrent assets $ 651 $ 579 Liabilities: Accrued liabilities $ 119 $ 156 Other noncurrent liabilities 691 539 Total lease liabilities $ 810 $ 695 The components of net lease costs were as follows (in millions): Years ended December 31, Lease costs 2023 2022 2021 Operating (1) $ 208 $ 218 $ 237 Sublease income (28) (32) (38) Total net lease costs $ 180 $ 186 $ 199 ____________ (1) Includes short-term leases and variable lease costs, which were not material for the years ended December 31, 2023, 2022 and 2021. Maturities of lease liabilities as of December 31, 2023, were as follows (in millions): Maturity dates Amounts 2024 $ 138 2025 121 2026 109 2027 95 2028 74 Thereafter 440 Total lease payments (1) 977 Less imputed interest (167) Present value of lease liabilities $ 810 ____________ (1) Includes future rental commitments for abandoned leases of $67 million. We expect to receive total future rental income of $70 million related to noncancellable subleases for abandoned facilities. The weighted-average remaining lease terms and weighted-average discount rates were as follows: December 31, 2023 2022 Weighted-average remaining lease term (in years) 9.7 8.2 Weighted-average discount rate 3.6 % 2.7 % Cash and noncash information related to our leases was as follows (in millions): Years ended December 31, 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 182 $ 171 $ 190 ROU assets obtained in exchange for lease obligations: Operating leases $ 245 $ 191 $ 340 As of December 31, 2023, there were no future lease payments for leases that have not yet commenced. |
Other current assets and accrue
Other current assets and accrued liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Other current assets and accrued liabilities | Other current assets and accrued liabilities Other current assets consisted of the following (in millions): December 31, 2023 2022 Prepaid expenses $ 1,647 $ 1,204 Corporate partner receivables 502 700 Tax receivables 172 129 Other 281 355 Total other current assets $ 2,602 $ 2,388 Accrued liabilities consisted of the following (in millions): December 31, 2023 2022 Sales deductions $ 7,271 $ 5,986 Income taxes payable 1,664 1,195 Employee compensation and benefits 1,381 1,099 Dividends payable 1,205 1,137 Accrued interest payable 936 470 Other 2,902 2,637 Total accrued liabilities $ 15,359 $ 12,524 |
Financing arrangements
Financing arrangements | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Financing arrangements | Financing arrangements Our borrowings consisted of the following (in millions): December 31, 2023 2022 0.41% CHF700 million bonds due 2023 (0.41% 2023 Swiss franc Bonds) $ — $ 757 2.25% notes due 2023 (2.25% 2023 Notes) — 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 5.25% notes due 2025 (5.25% 2025 Notes) 2,000 — Term loan due April 2025 2,000 — 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) 828 803 5.507% notes due 2026 (5.507% 2026 Notes) 1,500 — 2.60% notes due 2026 (2.60% 2026 Notes) 1,250 1,250 Term loan due October 2026 2,000 — 5.50% £475 million notes due 2026 (5.50% 2026 pound sterling Notes) 605 574 2.20% notes due 2027 (2.20% 2027 Notes) 1,724 1,724 3.20% notes due 2027 (3.20% 2027 Notes) 1,000 1,000 5.15% notes due 2028 (5.15% 2028 Notes) 3,750 — 1.65% notes due in 2028 (1.65% 2028 Notes) 1,234 1,234 3.00% notes due 2029 (3.00% 2029 Notes) 750 750 4.05% notes due 2029 (4.05% 2029 Notes) 1,250 1,250 4.00% £700 million notes due 2029 (4.00% 2029 pound sterling Notes) 892 846 2.45% notes due 2030 (2.45% 2030 Notes) 1,250 1,250 5.25% notes due 2030 (5.25% 2030 Notes) 2,750 — 2.30% notes due 2031 (2.30% 2031 Notes) 1,250 1,250 2.00% notes due 2032 (2.00% 2032 Notes) 1,001 1,051 3.35% notes due 2032 (3.35% 2032 Notes) 1,000 1,000 4.20% notes due 2033 (4.20% 2033 Notes) 750 750 5.25% notes due 2033 (5.25% 2033 Notes) 4,250 — 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) 1,803 2,000 5.75% notes due 2040 (5.75% 2040 Notes) 373 373 2.80% notes due 2041 (2.80% 2041 Notes) 949 1,110 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 5.60% notes due 2043 (5.60% 2043 Notes) 2,750 — 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) 2,132 2,250 4.663% notes due 2051 (4.663% 2051 Notes) 3,541 3,541 3.00% notes due 2052 (3.00% 2052 Notes) 999 1,254 4.20% notes due 2052 (4.20% 2052 Notes) 950 1,000 4.875% notes due 2053 (4.875% 2053 Notes) 1,000 1,000 December 31, 2023 2022 5.65% notes due 2053 (5.65% 2053 Notes) 4,250 — 2.77% notes due 2053 (2.77% 2053 Notes) 940 940 4.40% notes due 2062 (4.40% 2062 Notes) 1,200 1,250 5.75% notes due 2063 (5.75% 2063 Notes) 2,750 — Other notes due 2097 100 100 Unamortized bond discounts, premiums and issuance costs, net (1,420) (1,246) Fair value adjustments (314) (437) Other 17 12 Total carrying value of debt 64,613 38,945 Less current portion (1,443) (1,591) Total long-term debt $ 63,170 $ 37,354 There are no material differences between the effective interest rates and the 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. Under the terms of all of our outstanding notes, except our Other notes due 2097, in the event of a change-in-control triggering event we may be required to purchase all or a portion of these debt securities at prices equal to 101% of the principal amounts of the notes plus accrued and unpaid interest. In addition, all of our outstanding notes—except our Other notes due 2097—may be redeemed at any time at our option—in whole or in part—at the principal amounts of the notes being redeemed plus accrued and unpaid interest and make-whole amounts, which are defined by the terms of the notes. Certain of the redeemable notes do not require the payment of make-whole amounts if redeemed during a specified period of time immediately prior to the maturity of the notes. Such time periods range from one month to six months prior to maturity, except for the 5.507% 2026 Notes, which may be redeemed without payment of the make-whole amount if redemption occurs after two years prior to maturity. Debt issuances and acquisition-related financing In March 2023, in connection with the acquisition of Horizon (see Note 3, Acquisitions and divestitures —Acquisition of Horizon Therapeutics plc ), we issued the following series of notes (in millions): Principal Amount 5.25% 2025 Notes $ 2,000 5.507% 2026 Notes 1,500 5.15% 2028 Notes 3,750 5.25% 2030 Notes 2,750 5.25% 2033 Notes 4,250 5.60% 2043 Notes 2,750 5.65% 2053 Notes 4,250 5.75% 2063 Notes 2,750 Total $ 24,000 In December 2022, in connection with the acquisition of Horizon, we entered into a bridge credit agreement, which provided for borrowings with an aggregate principal amount of $24.5 billion as of December 31, 2022. Subsequent to our March 2023 debt issuance described above, we terminated the bridge credit agreement. Accordingly, during the first quarter of 2023, we recognized $98 million of financing cost associated with the bridge credit agreement, primarily in Other income (expense), net, in the Consolidated Statements of Income. Also in connection with the acquisition of Horizon, we entered into a $4.0 billion term loan credit agreement in December 2022. In October 2023, in connection with the completion of the acquisition of Horizon, we borrowed $4.0 billion under the term loan credit agreement with an interest rate of three-month SOFR plus 1.225%, of which $2.0 billion is due in April 2025 and $2.0 billion is due in October 2026. No amounts under this agreement were outstanding as of December 31, 2022. During the years ended December 31, 2022 and 2021, we issued debt securities in the following offerings: • In 2022, we issued $7.0 billion of debt consisting of $750 million of the 3.00% 2029 Notes, $1.25 billion of the 4.05% 2029 Notes, $1.0 billion of the 3.35% 2032 Notes, $750 million of the 4.20% 2033 Notes, $1.0 billion of the 4.20% 2052 Notes, $1.0 billion of the 4.875% 2053 Notes and $1.25 billion of the 4.40% 2062 Notes. The 3.00% 2029 Notes were issued and used to finance eligible projects that met specified criteria to reduce our impact on the environment. • In 2021, we issued $5.0 billion of debt consisting of $1.25 billion of the 1.65% 2028 Notes, $1.25 billion of the 2.00% 2032 Notes, $1.15 billion of the 2.80% 2041 Notes and $1.35 billion of the 3.00% 2052 Notes. Debt extinguishment In 2023, we repurchased portions of the 2.00% 2032 Notes, 3.15% 2040 Notes, 2.80% 2041 Notes, 3.375% 2050 Notes, 3.00% 2052 Notes, 4.20% 2052 Notes and 4.40% 2062 Notes for an aggregate cost of $647 million, which resulted in the recognition of a $225 million gain on extinguishment of debt recorded in Other income (expense), net, in the Consolidated Statements of Income. In 2022, we repurchased portions of the 2.20% 2027 Notes, the 1.65% 2028 Notes, the 2.00% 2032 Notes, the 2.80% 2041 Notes and the 3.00% 2052 Notes for an aggregate cost of $297 million, which resulted in the recognition of a $78 million gain on extinguishment of debt recorded in Other income (expense), net, in the Consolidated Statements of Income. Debt repayments/redemptions We made debt repayments/redemptions during the years ended December 31, 2023, 2022 and 2021, as follows: • In 2023, we repaid $750 million aggregate principal amount of the 2.25% 2023 Notes as well as the CHF700 million aggregate principal amount ($704 million upon settlement of the related cross-currency swap) of the 0.41% 2023 Swiss franc Bonds. • In 2022, no debt was repaid/redeemed. • In 2021, we redeemed $4.2 billion of debt, including the €1.25 billion aggregate principal amount ($1.4 billion upon settlement of the related cross-currency swap) of the 1.25% 2022 euro Notes, the $500 million aggregate principal amount of the 2.70% 2022 Notes, the $1.5 billion aggregate principal amount of the 2.65% 2022 Notes and the $750 million aggregate principal amount of the 3.625% 2022 Notes. In connection with the redemption of these notes, we paid a total of $24 million in make-whole amounts plus associated accrued and unpaid interest, all of which was recognized in Interest expense, net, in the Consolidated Statements of Income. Interest rate swaps To achieve a desired mix of fixed-rate and floating-rate debt, we entered into interest rate swap contracts that effectively converted fixed-rate interest coupons for certain of our debt issuances to floating SOFR-based coupons over the lives of the respective notes. These interest rate swap contracts qualified and are designated as fair value hedges. During the year ended December 31, 2021, we entered into interest rate swap contracts with an aggregate notional amount of $1.0 billion with respect to the 2.45% 2030 Notes and an aggregate notional amount of $500 million with respect to the 2.30% 2031 Notes. In connection with the redemption of the 3.625% 2022 Notes, discussed above, associated interest rate swap contracts with an aggregate notional amount of $750 million were terminated. As of December 31, 2023 and 2022, the effective interest rates on notes for which we have entered into interest rate swap contracts and the related notional amounts of these contracts were as follows (dollar amounts in millions): Notes Notional amounts Effective interest rates 3.625% 2024 Notes $ 1,400 SOFR + 3.4% 3.125% 2025 Notes 1,000 SOFR + 2.1% 2.60% 2026 Notes 1,250 SOFR + 2.1% 2.45% 2030 Notes 1,000 SOFR + 1.3% 2.30% 2031 Notes 500 SOFR + 1.1% 4.663% 2051 Notes 1,500 SOFR + 4.3% Total notional amounts $ 6,650 Cross-currency swaps To hedge our exposure to foreign currency exchange rate risk associated with certain of our long-term notes denominated in foreign currencies, we entered into cross-currency swap contracts. The terms of these contracts outstanding as of December 31, 2023, effectively convert the interest payments and principal repayments on our 2.00% 2026 euro Notes, 5.50% 2026 pound sterling Notes and 4.00% 2029 pound sterling Notes from euros and pounds sterling to U.S. dollars. These cross-currency swap contracts have been designated as cash flow hedges. For information regarding the terms of these contracts, see Note 19, Derivative instruments. Cross-currency swap contracts associated with other foreign denominated debt previously outstanding were settled in connection with the repayment/redemption of such debt, as discussed above. Shelf registration statement and other facilities As of December 31, 2023, we have a commercial paper program that allows us to issue up to $2.5 billion of unsecured commercial paper to fund our working-capital needs. As of December 31, 2023 and 2022, we had no amounts outstanding under our commercial paper program. In the first quarter of 2023, we amended and restated our syndicated, unsecured, revolving credit agreement, under which we may borrow up to $4.0 billion (increased from $2.5 billion prior to the amendment) for general corporate purposes, including as a liquidity backstop for our commercial paper program. The commitments under the revolving credit agreement may be increased by up to $1.25 billion with the agreement of the banks (increased from $750 million prior to the amendment). Each bank that is a party to the agreement has an initial commitment term of five years. This term may be extended for up to two additional one-year periods with the agreement of the banks. Annual commitment fees for this agreement are 0.09% of the unused portion of the facility based on our current credit rating. Generally, we would be charged interest for any amounts borrowed under this facility, based on our current credit rating, at (i) SOFR plus 1.01% or (ii) the highest of (A) the administrative agent bank base commercial lending rate, (B) the overnight federal funds rate plus 0.50% or (C) one-month SOFR plus 1.1%. As of December 31, 2023 and 2022, no amounts were outstanding under this facility. In February 2023, we filed a shelf registration statement with the SEC that allows us to issue unspecified amounts of debt securities; common stock; preferred stock; warrants to purchase debt securities, common stock, preferred stock or depositary shares; rights to purchase common stock or preferred stock; securities purchase contracts; securities purchase units; and depositary shares. Under this shelf registration statement, all of the securities available for issuance may be offered from time to time, with terms to be determined at the time of issuance. This shelf registration statement expires in February 2026. Certain of our financing arrangements contain nonfinancial covenants. In addition, our revolving credit agreement and term loan agreement include a financial covenant, which requires us to maintain a specified minimum interest coverage ratio of (i) the sum of consolidated net income, interest expense, provision for income taxes, depreciation expense, amortization expense, unusual or nonrecurring charges and other noncash items (Consolidated EBITDA) to (ii) Consolidated Interest Expense, each as defined and described in the respective agreements. We were in compliance with all applicable covenants under these arrangements as of December 31, 2023. Contractual maturities of debt obligations The aggregate contractual maturities of all borrowings due subsequent to December 31, 2023, are as follows (in millions): Maturity dates Amounts 2024 $ 1,403 2025 5,500 2026 6,183 2027 2,724 2028 4,984 Thereafter 45,553 Total $ 66,347 Interest costs Interest costs are expensed as incurred except to the extent such interest is related to construction in progress, in which case interest is capitalized. Interest costs capitalized for the years ended December 31, 2023, 2022 and 2021, were not material. Interest paid, including the ongoing impact of interest rate and cross-currency swap contracts, during the year ended December 31, 2023 was $2.4 billion, and for each of the years ended December 31, 2022 and 2021 was $1.2 billion. |
Stockholders' equity
Stockholders' equity | 12 Months Ended |
Dec. 31, 2023 | |
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): Years ended December 31, 2023 2022 2021 Shares Dollars Shares Dollars Shares Dollars First quarter — $ — 24.6 $ 5,410 3.7 $ 865 Second quarter — — — — 6.5 1,592 Third quarter — — 1.5 900 4.6 1,069 Fourth quarter — — — — 6.9 1,461 Total stock repurchases — $ — 26.1 $ 6,310 21.7 $ 4,987 During the year ended December 31, 2023, we did not repurchase shares of our common stock. During the first quarter of 2022, the Company entered into ASR agreements with third-party financial institutions (Dealers) whereby the Company made payments in an aggregate amount of $6.0 billion to the Dealers and received and retired an initial 23.3 million shares of the Company’s common stock from the Dealers; during the third quarter of 2023, the ASR agreements were settled. In total, we repurchased 26.1 million shares of common stock during the year ended December 31, 2022, consisting primarily of the 24.8 million shares received under the ASR agreements. As of December 31, 2023, $7.0 billion remained available under our stock repurchase program. Dividends Our Board of Directors declared quarterly dividends per share of $2.13, $1.94 and $1.76, which were paid in each of the four quarters of 2023, 2022 and 2021, respectively. Historically, we have declared dividends in December of each year, which were paid in the first quarter of the following fiscal year and in March, July and October, which were paid in the second, third and fourth quarters, respectively, of the same fiscal year. Additionally, on December 12, 2023, the Board of Directors declared a quarterly cash dividend of $2.25 per share of common stock, which will be paid in March 2024, to all stockholders of record as of the close of business on February 16, 2024. Accumulated other comprehensive loss The components of AOCI were as follows (in millions): Foreign Cash flow Available-for-sale Other AOCI Balance as of December 31, 2020 $ (709) $ (263) $ 1 $ (14) $ (985) Foreign currency translation adjustments (135) — — — (135) Unrealized gains (losses) — 159 (1) — 158 Reclassification adjustments to income — 253 — — 253 Other gains — — — 1 1 Income taxes — (88) — — (88) Balance as of December 31, 2021 (844) 61 — (13) (796) Foreign currency translation adjustments 496 — — — 496 Unrealized gains — 84 — — 84 Reclassification adjustments to income — 2 — — 2 Other gains — — — 2 2 Income taxes — (19) — — (19) Balance as of December 31, 2022 (348) 128 — (11) (231) Foreign currency translation adjustments 50 — — — 50 Unrealized gains — 28 — — 28 Reclassification adjustments to income — (222) — — (222) Other gains — — — 42 42 Income taxes — 44 — — 44 Balance as of December 31, 2023 $ (298) $ (22) $ — $ 31 $ (289) With respect to the table above, income tax expenses or benefits for unrealized gains and losses and the related reclassification adjustments to income for cash flow hedges were a $6 million expense and a $50 million benefit in 2023, a $19 million expense and a $0 million expense in 2022 and a $33 million expense and a $55 million expense in 2021, respectively. Reclassifications out of AOCI and into earnings were as follows (in millions): Years ended December 31, Components of AOCI 2023 2022 2021 Consolidated Statements of Income locations Cash flow hedges: Foreign currency contract gains (losses) $ 180 $ 231 $ (8) Product sales Cross-currency swap contract gains (losses) 42 (233) (245) Other income (expense), net 222 (2) (253) Income before income taxes (50) — 55 Provision for income taxes $ 172 $ (2) $ (198) Net income Other In addition to common stock, our authorized capital includes 5 million shares of preferred stock, $0.0001 par value. As of December 31, 2023 and 2022, no shares of preferred stock were issued or outstanding. |
Fair value measurement
Fair value measurement | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair value measurement | Fair value measurement To estimate the fair value of our financial assets and liabilities, we use valuation approaches within a hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing an asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the inputs that market participants would use in pricing an asset or liability and are developed based on the best information available in the circumstances. The fair value hierarchy is divided into three levels based on the source of inputs as follows: Level 1 — Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access Level 2 — Valuations for which all significant inputs are observable either directly or indirectly—other than Level 1 inputs Level 3 — Valuations based on inputs that are unobservable and significant to the overall fair value measurement The availability of observable inputs can vary among the various types of financial assets and liabilities. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. In certain cases, the inputs used for measuring fair value may fall into different levels of the fair value hierarchy. In such cases, for financial statement disclosure purposes, the level in the fair value hierarchy within which the fair value measurement is categorized is based on the lowest level of input used that is significant to the overall fair value measurement. The fair values of each major class of the Company’s financial assets and liabilities measured at fair value on a recurring basis were as follows (in millions): Fair value measurement as of December 31, 2023, using: Quoted prices in Significant other Significant Total Assets: Available-for-sale securities: U.S. Treasury bills $ — $ — $ — $ — Money market mutual funds 10,266 — — 10,266 Other short-term interest-bearing securities — 138 — 138 Other investments — — — — Equity securities 4,514 — — 4,514 Derivatives: Foreign currency forward contracts — 145 — 145 Cross-currency swap contracts — — — — Interest rate swap contracts — — — — Total assets $ 14,780 $ 283 $ — $ 15,063 Liabilities: Derivatives: Foreign currency forward contracts $ — $ 116 $ — $ 116 Cross-currency swap contracts — 405 — 405 Interest rate swap contracts — 571 — 571 Forward interest rate contracts — — — — Contingent consideration obligations — — 96 96 Total liabilities $ — $ 1,092 $ 96 $ 1,188 Fair value measurement as of December 31, 2022, using: Quoted prices in Significant other Significant Total Assets: Available-for-sale securities: U.S. Treasury bills $ 1,676 $ — $ — $ 1,676 Money market mutual funds 2,659 — — 2,659 Other short-term interest-bearing securities — — — — Other investments — 130 — 130 Equity securities 480 — 335 815 Derivatives: Foreign currency forward contracts — 287 — 287 Cross-currency swap contracts — 54 — 54 Total assets $ 4,815 $ 471 $ 335 $ 5,621 Liabilities: Derivatives: Foreign currency forward contracts $ — $ 76 $ — $ 76 Cross-currency swap contracts — 541 — 541 Interest rate swap contracts — 776 — 776 Forward interest rate contracts — 5 — 5 Contingent consideration obligations — — 270 270 Total liabilities $ — $ 1,398 $ 270 $ 1,668 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, including our equity investments in BeiGene and Neumora, as of December 31, 2023, are based on quoted market prices in active markets, with no valuation adjustment. Previously, the fair value of our equity investment in Neumora did not have a readily determinable fair value and was initially valued at the acquisition price and subsequently valued based on a combination of observable price transactions when available, market performance and publicly available market information for similar companies that have actively traded equity securities. During the third quarter of 2023, Neumora became a publicly traded company, and its equity securities now have a readily determinable fair value. Accordingly, the fair value inputs of our equity investment in Neumora changed from using Level 3 inputs as of December 31, 2022, to using a Level 1 input as of December 31, 2023. See Note 10, Investments— Neumora Therapeutics, Inc. As of the first quarter of 2023, we no longer account for our equity investment in BeiGene under the equity method of accounting. As of December 31, 2022, the fair value and carrying value were $4.2 billion and $2.2 billion, respectively, with the fair value estimated by using a Level 1 input. See Note 10, Investments— BeiGene, Ltd. Derivatives Our foreign currency forward contracts, cross-currency swap contracts and 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 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, as applicable, include foreign currency exchange rates, LIBOR, SOFR, swap rates, obligor credit default swap rates and cross-currency basis swap spreads. Certain inputs, when applicable, are at commonly quoted intervals. Starting in the third quarter of 2023, terms under our existing derivative contracts reference the SOFR benchmark consistent with the ISDA protocol. See Note 19, 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 Consolidated Statements of Income. Changes in the carrying amounts of contingent consideration obligations were as follows (in millions): Years ended December 31, 2023 2022 2021 Beginning balance $ 270 $ 342 $ 33 Additions — — 309 Payments (9) (7) (7) Net changes in valuations (165) (65) 7 Ending balance $ 96 $ 270 $ 342 As of December 31, 2023 and 2022, our contingent consideration obligations are primarily the result of our acquisition of Teneobio in October 2021, which obligated 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 3, Acquisitions and divestitures. During the third quarter of 2023, the development of AMG 340 was terminated, resulting in a decrease of the related contingent consideration liability. The remeasurement of this liability of $165 million was recognized in Other operating expenses in the Consolidated Statements of Income and included in Other items, net, in the Consolidated Statements of Cash Flows. See Note 13, Goodwill and other intangible assets, for the impact on the related IPR&D asset. The remaining contingent consideration liability as of December 31, 2023, primarily relates to potential development and regulatory milestones for R&D programs acquired via the Teneobio acquisition that we continue to pursue. 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 December 31, 2023 and 2022, the aggregate fair values of our borrowings were $59.2 billion and $35.0 billion, respectively, and the carrying values were $64.6 billion and $38.9 billion, respectively. During the years ended December 31, 2023 and 2022, there were no transfers of assets or liabilities between fair value measurement levels, and except with respect to the impairment of AMG 340 disclosed in Note 13, Goodwill and other intangible assets, 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 | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative instruments | Derivative instruments The Company is exposed to foreign currency exchange rate and interest rate risks related to its business operations. To reduce our risks related to such exposures, we use or have used certain derivative instruments, including foreign currency forward, foreign currency option, cross-currency swap, forward interest rate and interest rate swap contracts. We have designated certain of our derivatives as cash flow and fair value hedges; we also have derivatives not designated as hedges. 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. The foreign currency exchange rate fluctuation exposure associated with cash inflows from our international product sales is partially offset by corresponding cash outflows from our international operating expenses. To further reduce this exposure, 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 is being hedged than in successive periods. As of December 31, 2023, 2022 and 2021, we had outstanding foreign currency forward contracts with aggregate notional amounts of $6.6 billion, $6.0 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 unrealized gains and losses on these contracts in AOCI in the Consolidated Balance Sheets, and we reclassify them to Product sales in the 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 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 Consolidated Balance Sheets and reclassified to Other income (expense), net, in the 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 December 31, 2023, were as follows (notional amounts in millions): Foreign currency U.S. dollars Hedged notes Notional amounts Interest rates Notional amounts Interest rates 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 4.6 % During the first quarter of 2023, our 0.41% 2023 Swiss franc Bonds matured, and the related cross-currency swaps were settled. 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 in the Consolidated Balance Sheets and are amortized into Interest expense, net, in the Consolidated Statements of Income over the lives of the associated debt issuances. Amounts expected to be recognized during the subsequent 12 months on forward interest rate contracts 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): Years ended December 31, Derivatives in cash flow hedging relationships 2023 2022 2021 Foreign currency forward contracts $ (14) $ 308 $ 373 Cross-currency swap contracts 73 (219) (214) Forward interest rate contracts (31) (5) — Total unrealized gains $ 28 $ 84 $ 159 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 SOFR-based coupons over the terms of the related hedge contracts. As of both December 31, 2023 and 2022, we had interest rate swap contracts with aggregate notional amounts of $6.7 billion that hedge certain portions of our long-term debt issuances. See Note 16, Financing arrangements, for information on our interest rate swaps. For interest rate swap contracts that qualify for and are designated as fair value hedges, we recognize in Interest expense, net, in the 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 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) December 31, December 31, Consolidated Balance Sheets locations 2023 2022 2023 2022 Current portion of long-term debt $ 1,441 $ 82 $ 41 $ 82 Long-term debt $ 4,788 $ 6,017 $ (355) $ (519) ____________ (1) Current portion of long-term debt includes $69 million and $82 million of carrying value with discontinued hedging relationships as of December 31, 2023 and 2022, respectively. Long-term debt includes $288 million and $357 million of carrying value with discontinued hedging relationships as of December 31, 2023 and 2022, respectively. (2) Current portion of long-term debt includes $69 million and $82 million of hedging adjustments on discontinued hedging relationships as of December 31, 2023 and 2022, respectively. Long-term debt includes $188 million and $257 million of hedging adjustments on discontinued hedging relationships as of December 31, 2023 and 2022, 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): Year ended December 31, 2023 Product sales Other income (expense), net Interest expense, net Total amounts recorded in income and (expense) line items presented in the Consolidated Statements of Income $ 26,910 $ 2,833 $ (2,875) The effects of cash flow and fair value hedging: Gains on cash flow hedging relationships reclassified out of AOCI: Foreign currency forward contracts $ 180 $ — $ — Cross-currency swap contracts $ — $ 42 $ — (Losses) gains on fair value hedging relationships—interest rate swap agreements: Hedged items (1) $ — $ — $ (118) Derivatives designated as hedging instruments $ — $ — $ 205 Year ended December 31, 2022 Product sales Other income (expense), net Interest expense, net Total amounts recorded in income and (expense) line items presented in the Consolidated Statements of Income $ 24,801 $ (814) $ (1,406) The effects of cash flow and fair value hedging: Gains (losses) on cash flow hedging relationships reclassified out of AOCI: Foreign currency forward contracts $ 231 $ — $ — Cross-currency swap contracts $ — $ (233) $ — Gains (losses) on fair value hedging relationships—interest rate swap agreements: Hedged items (1) $ — $ — $ 716 Derivatives designated as hedging instruments $ — $ — $ (636) Year ended December 31, 2021 Product sales Other income (expense), net Interest expense, net Total amounts recorded in income and (expense) line items presented in the Consolidated Statements of Income $ 24,297 $ 259 $ (1,197) The effects of cash flow and fair value hedging: Losses on cash flow hedging relationships reclassified out of AOCI: Foreign currency forward contracts $ (8) $ — $ — Cross-currency swap contracts $ — $ (245) $ — Gains (losses) on fair value hedging relationships—interest rate swap agreements: Hedged items (1) $ — $ — $ 281 Derivatives designated as hedging instruments $ — $ — $ (192) __________ (1) Gains on hedged items do not completely 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 December 31, 2023, we expected to reclassify $35 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 December 31, 2023, 2022 and 2021, the total notional amounts of these foreign currency forward contracts were $457 million, $517 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 years ended December 31, 2023, 2022 and 2021. Fair values of derivatives The fair values of derivatives included in the Consolidated Balance Sheets were as follows (in millions): Derivative assets Derivative liabilities December 31, 2023 Consolidated Balance Sheets locations Fair values Consolidated Balance Sheets locations Fair values Derivatives designated as hedging instruments: Foreign currency forward contracts Other current assets/ Other noncurrent assets $ 145 Accrued liabilities/ Other noncurrent liabilities $ 116 Cross-currency swap contracts Other current assets/ Other noncurrent assets — Accrued liabilities/ Other noncurrent liabilities 405 Interest rate swap contracts Other current assets/ Other noncurrent assets — Accrued liabilities/ Other noncurrent liabilities 571 Forward interest rate contracts Other current assets/ Other noncurrent assets — Accrued liabilities/ Other noncurrent liabilities — Total derivatives designated as hedging instruments 145 1,092 Total derivatives $ 145 $ 1,092 Derivative assets Derivative liabilities December 31, 2022 Consolidated Balance Sheets locations Fair values Consolidated Balance Sheets locations Fair values Derivatives designated as hedging instruments: Foreign currency forward contracts Other current assets/ Other noncurrent assets $ 287 Accrued liabilities/ Other noncurrent liabilities $ 76 Cross-currency swap contracts Other current assets/ Other noncurrent assets 54 Accrued liabilities/ Other noncurrent liabilities 541 Interest rate swap contracts Other current assets/ Other noncurrent assets — Accrued liabilities/ Other noncurrent liabilities 776 Forward interest rate contracts Other current assets/ Other noncurrent assets — Accrued liabilities/ Other noncurrent liabilities 5 Total derivatives designated as hedging instruments 341 1,398 Total derivatives $ 341 $ 1,398 For additional information, see Note 18, Fair value measurement. Our derivative contracts that were in liability positions as of December 31, 2023, 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 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 | 12 Months Ended |
Dec. 31, 2023 | |
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 Part I, Item 1A. Risk Factors— Our business may be affected by litigation and government investigations. We describe our legal proceedings and other matters that are significant or that we believe could become significant in this footnote. We record accruals for loss contingencies to the extent that we conclude it is probable that a liability has been incurred and the amount of the related loss can be reasonably estimated. We evaluate, on a quarterly basis, developments in legal proceedings and other matters that could cause an increase or decrease in the amount of the liability that has been accrued previously. Our legal proceedings involve various aspects of our business and a variety of claims, some of which present novel factual allegations and/or unique legal theories. In each of the matters described in this filing, 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, 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 Patent Disputes in the International Region We are involved in and expect future involvement in additional disputes regarding our PCSK9 patents in other jurisdictions and regions. This includes matters filed against us and that we have filed in Germany and Japan. Germany In February 2016, the European Patent Office (EPO) granted European Patent No. 2,215,124 (the EP’124 Patent) to Amgen. This patent describes and claims monoclonal antibodies to PCSK9 and methods of treatment and Sanofi filed an opposition to the patent in the EPO seeking to invalidate it. In November 2016, Sanofi-Aventis Deutschland GmbH, Sanofi-Aventis Groupe S.A. and Sanofi Winthrop Industrie S.A. filed a joint opposition against Amgen’s patent, and each of Lilly, Regeneron Pharmaceuticals, Inc. (Regeneron) and Strawman Ltd. also filed oppositions to Amgen’s patent. In November 2018, the EPO confirmed the validity of Amgen’s EP’124 Patent, which was appealed to the Technical Board of Appeal (TBA). On October 29, 2020, the TBA upheld the validity of certain claims, including claims that protect Repatha, but ruled that broader claims encompassing PRALUENT were invalid. As a result of the TBA’s decision, national litigations regarding PRALUENT in Germany are in the process of being resolved. In Germany, Sanofi-Aventis Deutschland GmbH and Regeneron filed actions seeking damages arising from the provisional enforcement of an injunction against PRALUENT that was lifted after the TBA’s October 2020 ruling. Amgen filed counterclaims alleging that PRALUENT infringes Amgen’s European Patent No. 2,641,917 (the EP’917 Patent). On November 29, 2023, the Regional Court of Munich ruled that PRALUENT does not infringe the EP’917 Patent. A hearing has been scheduled for February 28, 2024 in the Munich Regional Court on Sanofi-Aventis Deutschland GmbH’s and Regeneron’s action for damages. On July 21, 2022, Sanofi Biotechnology SAS filed an action against Amgen GmbH and Amgen (Europe) B.V. before the Regional Court of Dusseldorf alleging that the marketing and sale of Repatha infringes European Patent No. 2,756,004 (the EP’004 Patent), which Sanofi Biotechnology SAS licensed from Regeneron. Sanofi Biotechnology SAS is seeking infringement damages and injunctive relief. The court scheduled a hearing on this infringement action for May 28, 2024. On August 3, 2023, Amgen GmbH filed a Nullity Action before the German Federal Patent Court seeking invalidation of Regeneron’s EP’004 Patent. Regeneron filed a Statement of Defense on November 20, 2023. On January 22, 2024, Amgen filed its brief in reply. Amgen and an anonymous third party opposed the EP’004 Patent in the EPO, but on December 6, 2023 the patent was finally upheld by the TBA as granted. Unified Patent Court of the European Union On June 1, 2023, Amgen filed an action before the Local Division of the Unified Patent Court in Munich against Sanofi-Aventis Deutschland GmbH, Sanofi-Aventis Groupe S.A., Sanofi Winthrop Industrie S.A. (collectively, Sanofi-Aventis), and Regeneron alleging that the importation, marketing, sale and use of PRALUENT infringes European Patent 3,666,797 (the EP’797 Patent) seeking an injunction and damages for past infringement. Regeneron filed counterclaims for revocation, but on February 5, 2024, the court transferred the counterclaims to the Central Division of the Unified Patent Court that is presiding over Sanofi’s revocation action. The Local Division scheduled the hearing on our EP’797 Patent infringement action to begin on October 16, 2024. On June 29, 2023, the Central Division of the Unified Patent Court in Munich served Amgen with an action that was filed by Sanofi-Aventis that seeks revocation of the EP’797 Patent. The Central Division scheduled a hearing on the revocation action to begin on June 4, 2024. On January 10, 2024, Sanofi Biotechnologies SAS and Regeneron filed an action against Amgen Inc., Amgen Europe B.V., Amgen N.V., Amgen GmbH, Amgen B.V., Amgen SAS, and Amgen S.R.L before the Unified Patent Court, alleging infringement of EP 3,536,712, which Sanofi Biotechnology SAS licensed from Regeneron. Sanofi and Regeneron are seeking an injunction against the sale, marketing, use, importation, or storage of Repatha for certain specified uses in Belgium, France, Germany, Italy and the Netherlands. Japan On April 24, 2020, the Supreme Court of Japan declined to hear Sanofi K.K.’s appeals making final the Japanese High Court’s decisions that PRALUENT infringes Amgen’s valid patent rights in Japan. On June 24, 2020, Amgen filed written answers to the invalidity trials initiated by Regeneron on February 12, 2020 before the Japan Patent Office seeking to invalidate Amgen’s Japanese patents that were previously held infringed by PRALUENT and valid over challenges filed by Sanofi K.K. On April 15, 2021, the Japanese Patent Office dismissed Regeneron’s invalidity trials, and in August 2021 Regeneron appealed the decisions to the Japanese High Court. On January 26, 2023, the Japanese High Court found Amgen’s patent claims invalid for lacking adequate support. On March 13, 2023, Amgen appealed to the Japanese Supreme Court the High Court’s decision that Amgen’s Japanese patent claims relating to PCSK9 were invalid for lacking adequate support. On September 15, 2023, the Japanese Supreme Court declined to hear Amgen’s appeal. The case will be remanded to the Japan Patent Office for further proceedings. Damages proceedings against Sanofi K.K. are ongoing before the Tokyo District Court, where Sanofi K.K. has initiated new validity challenges to Amgen patents in Japan. On September 27, 2023, the Tokyo District Court found Amgen’s patent claims invalid and dismissed Amgen’s lawsuit for damages. Amgen appealed the District Court’s decision to the IP High Court on December 28, 2023. Prolia/XGEVA Biologics Price Competition and Innovation Act (BPCIA) Litigation Amgen Inc. et al. v. Sandoz Inc., et al. On May 1, 2023, Amgen Inc. and Amgen Manufacturing Limited filed a lawsuit in the U.S. District Court for the District of New Jersey (New Jersey District Court) against Sandoz Inc., Sandoz GmbH, Lek Pharmaceuticals d.d., Novartis Pharmaceutical Productions d.o.o., and Novartis AG (collectively, Defendants) based on the submission to the FDA of a BLA seeking approval to market and sell a biosimilar version of Amgen’s Prolia and XGEVA products. The complaint asserts infringement of the following 21 patents, which are listed in the FDA’s Purple Book for Amgen’s Prolia and XGEVA products: U.S. Patent Nos. 7,364,736; 7,928,205; 8,058,418; 9,012,178; 9,133,493; 9,228,168; 9,320,816; 9,328,134; 9,359,435; 9,481,901; 10,167,492; 10,513,723; 10,583,397; 10,822,630; 10,894,972; 11,077,404; 11,098,079; 11,130,980; 11,254,963; 11,299,760; and 11,434,514 (collectively, the Asserted Patents). Amgen seeks a judgment from the New Jersey District Court that Defendants have infringed or will infringe one or more claims of each of the Asserted Patents and based on that judgment, a permanent injunction prohibiting the commercial manufacture, use, offer to sell, or sale within the United States or importation into the United States of Defendants’ proposed denosumab biosimilar before expiration of each of the Asserted Patents found to infringe. Amgen also seeks monetary remedies for any past acts of infringement. On June 16, 2023, Amgen filed an amended and supplemental complaint to include additional information regarding the completion of the BPCIA information exchange after the filing of the original complaint. Sandoz Inc. (Sandoz) responded to the amended and supplemental complaint on July 7, 2023, denying infringement and asserting counterclaims seeking a declaratory judgment that asserted patents are invalid and/or unenforceable. On July 28, 2023, Amgen responded, seeking a denial and dismissal of Sandoz’s counterclaims. On August 23, 2023, the New Jersey District Court entered a stipulation and order dismissing without prejudice Sandoz GmbH, Lek Pharmaceuticals d.d., Novartis Pharmaceutical Productions d.o.o., and Novartis AG (collectively, Foreign Defendants) from the action. Pursuant to the stipulation entered by the New Jersey District Court, the Foreign Defendants agreed to be bound by any judgment order or decision in the matter (including appeals) as if the Foreign Defendants were named as defendants and parties to the judgment order or decision. Sandoz is now the sole named Defendant in the action. On October 30, 2023, the New Jersey District Court commenced a hearing on Amgen’s motion for a preliminary injunction to prohibit Sandoz from engaging in the commercial manufacture, use, offer for sell or sale within the United States, or importation into the United States of its proposed denosumab biosimilar until judgment is entered after trial on the merits. Closing arguments on Amgen’s motion for the preliminary injunction were held on December 21, 2023. ABP 938 (aflibercept) Patent Litigation On January 10, 2024, Regeneron filed a lawsuit in the U.S. District Court for the Central District of California (the California Central District Court) against Amgen alleging infringement of 32 patents listed by Regeneron in the BPCIA exchange. The lawsuit stems from Amgen’s submission of an application under the BPCIA for FDA licensure of ABP 938 as biosimilar to Regeneron’s EYLEA. By its complaint, Regeneron seeks, among other remedies, an injunction prohibiting the commercial manufacture, use, offer for sale or sale in the United States or import into the United States of ABP 938 before the expiration of each of the patents found to be infringed. On January 11, 2024, Regeneron filed a motion with the Judicial Panel on Multidistrict Litigation to transfer this case from the California Central District Court to the U.S. District Court for the Northern District of West Virginia for coordinated pretrial proceedings with the five other cases involving EYLEA biosimilars pending in that district. A hearing on Regeneron’s motion to transfer has been scheduled for March 28, 2024. Amgen responded to Regeneron’s complaint on February 2, 2024, denying infringement and asserting counterclaims seeking a declaratory judgment that the asserted patents are not infringed, invalid, and/or unenforceable. Antitrust Class Action Sensipar Antitrust Class Actions From February to April 2019, four plaintiffs filed putative class action lawsuits against Amgen and various entities affiliated with Teva Pharmaceuticals USA, Inc. (Teva) alleging anticompetitive conduct in connection with settlements between Amgen and manufacturers of generic cinacalcet product. Two of those actions were brought in the U.S. District Court for the District of Delaware (the Delaware District Court), captioned UFCW Local 1500 Welfare Fund v. Amgen Inc., et al. (February 21, 2019) (Local 1500) and Cesar Castillo, Inc. v. Amgen Inc., et al. (February 26, 2019) (Castillo). The third action was brought in the New Jersey District Court, captioned Teamsters Local 237 Welfare Fund, et al. v. Amgen Inc., et al. (March 14, 2019) (Local 237) and the fourth action was brought in the U.S. District Court for the Eastern District of Pennsylvania (the Eastern Pennsylvania District Court), captioned KPH Healthcare Services, Inc. a/k/a Kinney Drugs, Inc. v. Amgen Inc., et al (April 10, 2019) (KPH). Each of the lawsuits is brought on behalf of a putative class of direct or indirect purchasers of Sensipar and alleges that the plaintiffs have overpaid for Sensipar as a result of Amgen’s conduct that allegedly improperly delayed market entry by manufacturers of generic cinacalcet products. The lawsuits focus predominantly on the settlement among Amgen, Watson Laboratories, Inc. (Watson) and Teva of the parties’ patent infringement litigation. Each of the lawsuits seeks, among other things, treble damages, equitable relief and attorneys’ fees and costs. On April 10, 2019, the plaintiff in the KPH lawsuit filed a motion seeking to have the four lawsuits consolidated and designated as a multidistrict litigation (MDL) in the Eastern Pennsylvania District Court, and the plaintiff in the Local 1500 lawsuit filed a motion seeking to have the four lawsuits, along with Cipla Ltd. v. Amgen Inc. , consolidated and designated as an MDL in the Delaware District Court. On July 31, 2019, the MDL panel entered an order consolidating in the Delaware District Court the four class action lawsuits. On September 13, 2019, the plaintiffs filed amended complaints, and on October 15, 2019, Amgen filed its motion to dismiss both the direct purchaser plaintiffs’ consolidated class action complaint and the indirect purchaser end payer plaintiffs’ complaint. On December 6, 2019, the plaintiffs responded to Amgen’s motion to dismiss and, on January 10, 2020, Amgen filed its response. On February 6, 2020, the motions in the class action lawsuits were transferred to the U.S. Magistrate Judge for the District of Delaware (Magistrate Judge) for a recommendation. The MDL panel certified its conditional transfer order on February 6, 2020 transferring the additional class action lawsuit brought in the U.S. District Court for the Southern District of Florida, captioned MSP Recovery Claims v. Amgen Inc., et al. , to the Delaware District Court. On July 22, 2020, the Magistrate Judge issued a recommendation to the Delaware District Court that the claims against Amgen be dismissed but leave be given to plaintiffs to amend their complaints. On August 5, 2020, the plaintiffs filed objections to the Magistrate Judge’s report and recommendation. On August 19, 2020, Amgen filed a response to the plaintiffs’ objections. On November 30, 2020, the Delaware District Court adopted the Magistrate Judge’s recommendation in part and denied it in part, denying Amgen’s motion to dismiss on the grounds that plaintiffs adequately alleged reverse payment claims but granted Amgen’s motion to dismiss with respect to the other Federal antitrust claims. On December 23, 2020, Teva, Watson and Actavis filed a motion for interlocutory appeal and for a stay pending appeal and Amgen filed its joinder (the 1292 Motion). On January 5, 2021, a joint status report was filed advising the Delaware District Court that the defendants are still considering whether to withdraw the 1292 Motion and plaintiffs’ offer to stay discovery, pending further rulings on motions to dismiss the amended complaints. On January 19, 2021, a joint status report was filed pursuant to the Delaware District Court’s January 6, 2021 order along with a stipulation to defer the 1292 Motion until after rulings on the amended complaints. On February 16, 2021, the plaintiffs in the antitrust class action lawsuit brought on behalf of putative classes of direct or indirect purchasers of Sensipar filed their amended complaints. On March 4, 2021, a stipulation and order regarding the filing of a second amended complaint were filed to add another plaintiff: Teamsters Western Region & Local 177 Health Care Fund. On March 17, 2021, a defendant, MSP Recovery Claims, Series LLC, filed its notice of voluntary dismissal. On March 30, 2021, the remaining defendants, including Amgen, filed their motions to dismiss the second amended complaint. On April 27, 2021, plaintiffs filed their oppositions to defendants’ (including Amgen’s) motion to dismiss, and defendants’ reply was filed on May 25, 2021. A hearing on defendants’ motion to dismiss was held in the Delaware District Court on July 13, 2021. 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. On May 11, 2022, the parties filed motions asking permission to seek interlocutory appeal. The plaintiffs did not oppose Amgen’s motion and instead argued all issues should be appealed at this time. Amgen filed its opposition to plaintiffs’ motion on June 10, 2022, and reply briefs were filed on June 24, 2022. On February 16, 2023, the Delaware District Court denied Amgen’s motion for interlocutory appeal. On March 2, 2023, Amgen filed a motion for reargument, which the Delaware District Court denied while also certifying a question regarding whether the current judge has the authority to certify a question decided by a predecessor judge. On April 17, 2023, Amgen filed a petition with the U.S. Court of Appeals for the Third Circuit (the Third Circuit Court), seeking a grant of our request for interlocutory appeal of the certified question as well as the Delaware District Court’s denial of our motion to dismiss the reverse payment claim. Amgen’s response to the class action complaints is due 30 days after resolution or denial of the interlocutory appeal. On June 26, 2023, the Third Circuit Court entered an order granting defendants’ (including Amgen’s) petition for interlocutory appeal and denying plaintiffs’ cross-petition. The questions certified are whether (1) the statute for interlocutory decisions authorizes a district court judge to certify for interlocutory appeal an order issued in the same case by a predecessor district court judge; and (2) the settlement of a patent infringement claim that involves the forgiveness of damages associated with that patent’s alleged infringement, on its own or combined with an acceleration clause, constitutes a reverse payment. On July 3, 2023, Amgen and Teva Pharmaceuticals USA, Inc. filed a notice of appeal, and on October 17, 2023, Amgen submitted its initial brief in its appeal before the Third Circuit Court. On January 12, 2024, Amgen reached an agreement in principle to settle with the putative class of indirect purchasers of Sensipar. The action with respect to the putative class of direct purchasers of Sensipar will proceed with the pending appeal before the Third Circuit Court. Regeneron Pharmaceuticals, Inc. Antitrust Action On May 27, 2022, Regeneron filed suit against Amgen in the Delaware District Court for federal and state antitrust and unfair competition violations and tortious interference with prospective business relations. Regeneron alleges that Amgen’s sales contracting practices for Repatha, ENBREL and Otezla with key insurers, third-party payers and PBMs have harmed the sales of its product PRALUENT and focuses on two primary arguments: that Amgen improperly bundled sales of Repatha with ENBREL, Otezla and potentially other products and sought exclusive or de facto exclusive formulary positioning for Repatha. Amgen’s initial responsive pleading, a motion to dismiss, was filed on August 1, 2022. On August 11, 2022, Amgen moved to stay the case pending the ultimate decision on the merits of the ongoing patent litigation between Amgen and Regeneron in Amgen Inc., et al. v. Sanofi, et al. On January 6, 2023, the Delaware District Court heard oral argument on the motion to stay and the motion to dismiss. On February 10, 2023, the Delaware District Court denied Amgen’s motion to stay this action, and on March 21, 2023, the Delaware District Court denied Amgen’s motion to dismiss the complaint. On August 28, 2023, Regeneron filed its amended complaint, and on September 20, 2023, Amgen filed a counterclaim, alleging Regeneron’s own anticompetitive conduct with respect to formulary position for Regeneron’s drug, PRALUENT, at CVS. Trial is scheduled to begin on November 12, 2024. U.S. Tax Litigation and Related Matters Amgen Inc. & Subsidiaries v. Commissioner of Internal Revenue See Note 7, Income taxes, for discussion of the IRS tax dispute and the Company’s petitions in the U.S. Tax Court. Securities Class Action Litigation On March 13, 2023, Roofers Local No. 149 Pension Fund filed a purported class action against Amgen, Robert Bradway and Peter Griffith. The action was brought on behalf of an alleged class of Amgen shareholders who owned stock between July 29, 2020 and April 27, 2022 (the alleged class period). Plaintiffs allege that the defendants made a series of materially false and misleading statements and omissions during the alleged class period regarding the failure to timely disclose the potential tax liability claimed by the IRS. Plaintiffs further allege that they and other purported class members suffered losses and damages resulting from declines in the market value of Amgen’s common stock after the potential tax liability claimed by the IRS was disclosed. On August 31, 2023, plaintiff filed an amended complaint and Amgen filed its motion to dismiss on November 6, 2023. Plaintiff’s response was filed on January 12, 2024 and Amgen’s reply is due February 26, 2024. Shareholder Derivative Litigation (Martin) On August 2, 2023, Leon Martin filed a derivative action (the Martin Derivative Action) captioned Leon Martin v. Robert A. Bradway, et al., No. 1:23-cv-06754 (S.D.N.Y. Aug. 2, 2023), purportedly on behalf of Amgen, against Amgen, Robert Bradway, Peter Griffith and Amgen’s independent Board members. The action was filed in the U.S. District Court for the Southern District of New York (Southern District Court of New York) as related to the pending federal securities class action filed by Roofers Local No. 149 Pension Fund on March 13, 2023 (the Roofers securities class action). The complaint in this matter alleges claims for violations of the Securities Exchange Act of 1934, breach of fiduciary duty, aiding and abetting breach of fiduciary duty, unjust enrichment and waste of corporate assets. The factual allegations that form the basis for these claims are essentially the same as the allegations asserted in the Roofers securities class action regarding purportedly false and misleading statements and omissions made from July 29, 2020 through April 27, 2022 relating to Amgen’s tax liabilities, business and finances, and the adequacy and maintenance of its internal controls. On October 2, 2023, the Southern District Court of New York granted a stay of the matter pending an outcome on the motion to dismiss in the federal securities class action filed by plaintiff. On December 7, 2023, Plaintiff filed a Notice of Voluntary Dismissal as to Board member Michael Drake. Shareholder Derivative Litigation (Clearwater) On December 1, 2023, a second derivative action (the Clearwater Derivative Action) was filed, captioned Cheri Clearwater v. Robert A. Bradway, et al., No. 1:23-cv-10538 (S.D.N.Y. Dec. 1, 2023), in the same court as the earlier-filed Martin Derivative Action. The second action is largely duplicative of the Martin Derivative Action, asserting the same claims purportedly on behalf of the Company against the individual directors that sat on Amgen’s Board during the relevant time period (July 29, 2020 through April 27, 2022). The complaint asserts claims for breach of fiduciary duty, unjust enrichment, waste of corporate assets, abuse of control, gross mismanagement, and violations of Section 10(b) of the Exchange Act arising out of Amgen’s disclosures with respect to its transfer pricing dispute with the IRS. However, the Clearwater Derivative Action complaint adds (1) two additional claims for violations of Sections 14(a) and 20(a) of the Exchange Act; (2) allegations that Amgen repurchased its own stock at artificially inflated prices during the relevant period; and (3) more detailed allegations as to why first making a demand on the Board would have been futile. On January 16, 2024, the Southern District Court of New York consolidated the Martin Derivative Action and Clearwater Derivative Action (the Consolidated Action). The stay entered in the Martin Derivative Action also applies to the Consolidated Action. ChemoCentryx, Inc. Securities Matters On May 5 and June 8 of 2021, ChemoCentryx and its Chief Executive Officer were named as defendants in two putative shareholder class actions filed in the U.S. District Court for the Northern District of California (Northern District Court of California). These cases were consolidated into Homyk v. ChemoCentryx, Inc. in which the plaintiffs allege violations of Sections 10(b) and 20(a) of the Securities Exchange Act in connection with statements regarding the New Drug Application for TAVNEOS and the underlying Phase 3 clinical trial, seeking an award of damages, interest and attorneys’ fees. On March 28, 2022, the plaintiffs filed their consolidated amended complaint, and on May 19, 2022, ChemoCentryx moved to dismiss these claims. On February 23, 2023, the Northern District Court of California substantially denied ChemoCentryx’s motion to dismiss the matter in its entirety, while granting the motion to dismiss with respect to certain allegations of the plaintiffs. On April 4, 2023, the parties submitted a case management statement to the Northern District Court of California, and on April 10, 2023, the Northern District Court of California entered an order setting dates for amendment of pleadings and briefing on class certification. On April 27, 2023, ChemoCentryx submitted its answer to the complaint. On August 25, 2023, the lead plaintiff moved to certify a class composed of all purchasers of ChemoCentryx stock between November 25, 2019 and May 6, 2021. ChemoCentryx filed its opposition on November 22, 2023. Lead plaintiff filed its reply brief in support of class certification on January 23, 2024. A hearing on class certification is set for February 15, 2024. Commitments – U.S. repatriation tax Under the 2017 Tax Act, we elected to pay in eight annual installments the repatriation tax related primarily to prior indefinitely invested earnings of our foreign operations. The following table summarizes the remaining scheduled repatriation tax payments as of December 31, 2023 (in millions): Amounts 2024 $ 1,467 2025 1,834 Total remaining U.S. repatriation tax commitments $ 3,301 |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II AMGEN INC. VALUATION AND QUALIFYING ACCOUNTS Years ended December 31, 2023, 2022 and 2021 (In millions) Allowance for doubtful accounts Balance Additions Other Deductions Balance Year ended December 31, 2023 $ 22 $ 6 $ — $ — $ 28 Year ended December 31, 2022 $ 26 $ — $ — $ (4) $ 22 Year ended December 31, 2021 $ 32 $ — $ — $ (6) $ 26 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net income | $ 6,717 | $ 6,552 | $ 5,893 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
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. |
Principles of consolidation | Principles of consolidation The 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. Certain reclassifications have been made to prior periods in the consolidated financial statements and accompanying notes to conform with the current presentation. On October 6, 2023, Amgen completed its acquisition of Horizon, and its operations became included in our consolidated financial statements commencing on the acquisition date. See Note 3, Acquisitions and divestitures, for additional information regarding this acquisition. |
Use of estimates | Use of estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results may differ from those estimates. |
Revenues | Revenues Product sales and sales deductions Revenue from product sales is recognized upon transfer of control of a product to a customer, generally upon delivery, based on an amount that reflects the consideration to which we expect to be entitled, net of accruals for estimated rebates, wholesaler chargebacks, discounts and other deductions (collectively, sales deductions) and returns established at the time of sale. We analyze the adequacy of our accruals for sales deductions quarterly. Amounts accrued for sales deductions are adjusted when trends or significant events indicate that an adjustment is appropriate. Accruals are also adjusted to reflect actual results. Accruals for sales deductions are based primarily on estimates of the amounts earned or to be claimed on the related sales. These estimates take into consideration current contractual and statutory requirements, specific known market events and trends, internal and external historical data and forecasted customer buying patterns. Sales deductions are substantially product specific and therefore, for any given period, can be affected by the mix of products sold. Included in sales deductions are immaterial net adjustments related to prior-period sales due to changes in estimates. Returns are estimated through comparison of historical return data with their related sales on a production lot basis. Historical rates of return are determined for each product and are adjusted for known or expected changes in the marketplace specific to each product, when appropriate. Historically, sales return provisions have amounted to less than 1% of gross product sales. Changes in estimates for prior-period sales return provisions have historically been immaterial. Our payment terms vary by types and locations of customers and by products or services offered. Payment terms differ by jurisdiction and customer, but payment is generally required in a term ranging from 30 to 120 days from date of shipment or satisfaction of the performance obligation. For certain products or services and certain customer types, we may require payment before products are delivered or services are rendered to customers. Indirect taxes collected from customers and remitted to government authorities that are related to sales of the Company’s products, primarily in Europe, are excluded from revenues. As a practical expedient, sales commissions are expensed when incurred because the amortization period would have been one year or less. These costs are recorded in SG&A expense in the Consolidated Statements of Income. Other revenues Other revenues consist primarily of royalty income and corporate partner revenues. Royalties from licensees are based on third-party sales of licensed products and are recorded when the related third-party product sale occurs. Royalty income is estimated based on historical and forecasted sales trends. Corporate partner revenues are composed mainly of license fees and milestones earned and our share of commercial profits generated from collaborations. See Arrangements with multiple-performance obligations, discussed below. Arrangements with multiple-performance obligations From time to time, we enter into arrangements for the R&D, manufacture and/or commercialization of products and product candidates. Such arrangements may require us to deliver various rights, services and/or goods, including intellectual property rights/licenses, R&D services, manufacturing services and/or commercialization services. The underlying terms of these arrangements generally provide for consideration to Amgen in the form of nonrefundable, upfront license fees; development and commercial-performance milestone payments; royalty payments; and/or profit sharing. In arrangements involving more than one performance obligation, each required performance obligation is evaluated to determine whether it qualifies as a distinct performance obligation based on whether (i) the customer can benefit from the good or service either on its own or together with other resources that are readily available and (ii) the good or service is separately identifiable from other promises in the contract. The consideration under the arrangement is then allocated to each separate distinct performance obligation based on its respective relative stand-alone selling price. The estimated selling price of each deliverable reflects our best estimate of what the selling price would be if the deliverable was regularly sold by us on a stand-alone basis or by using an adjusted market assessment approach if selling price on a stand-alone basis is not available. The consideration allocated to each distinct performance obligation is recognized as revenue when control of the related goods or services is transferred. Consideration associated with at-risk substantive performance milestones is recognized as revenue when it is probable that a significant reversal of the cumulative revenue recognized will not occur. We utilize the sales- and usage-based royalty exception in arrangements that resulted from the license of intellectual property, recognizing revenues generated from royalties or profit sharing as the underlying sales occur. |
Research and development costs | Research and development costs R&D costs are expensed as incurred and primarily include salaries, benefits and other staff-related costs; facilities and overhead costs; clinical trial and related clinical manufacturing costs; contract services and other outside costs; information systems’ costs; and amortization of acquired technology used in R&D with alternative future uses. R&D expenses also include costs and cost recoveries associated with third-party R&D arrangements, including upfront fees and milestones paid to third parties in connection with technologies that had not reached technological feasibility and did not have an alternative future use. Net payment or reimbursement of R&D costs is recognized when the obligations are incurred or as we become entitled to the cost recovery. See Note 9, Collaborations. |
Selling, general and administrative costs | Selling, general and administrative costs SG&A costs are primarily composed of salaries, benefits and other staff-related costs associated with sales and marketing, finance, legal and other administrative personnel; facilities and overhead costs; outside marketing, advertising and legal expenses; the U.S. healthcare reform federal excise fee on Branded Prescription Pharmaceutical Manufacturers and Importers; and other general and administrative costs. Advertising costs are expensed as incurred and were $647 million, $841 million and $843 million during the years ended December 31, 2023, 2022 and 2021, respectively. SG&A expenses also include costs and cost recoveries associated with marketing and promotion efforts under certain collaborative arrangements. Net payment or reimbursement of SG&A costs is recognized when the obligations are incurred or we become entitled to the cost recovery. See Note 9, Collaborations. |
Leases | Leases At inception of a contract, we determine whether an arrangement is or contains a lease. For all leases, we determine the classification as either operating or financing. Operating leases are included in Other noncurrent assets, Accrued liabilities and Other noncurrent liabilities in our Consolidated Balance Sheets. ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments under the lease. Lease recognition occurs at the commencement date, and lease liability amounts are based on the present value of lease payments made during the lease term. Our lease terms may include options to extend or terminate a lease when it is reasonably certain that we will exercise that option. Because most of our leases do not provide information to determine an implicit interest rate, we use our incremental borrowing rate in determining the present value of lease payments. ROU assets also include any lease payments made prior to the commencement date less lease incentives received. Operating lease expense is recognized on a straight-line basis over the lease term. We have lease agreements with both lease and nonlease components, which are generally accounted for together as a single lease component. In addition, for certain vehicle and equipment leases, we apply a portfolio approach to determine the lease term and discount rate. |
Stock-based compensation | Stock-based compensation We have stock-based compensation plans under which various types of equity-based awards are granted, including RSUs, performance units and stock options. The fair values of RSUs and stock option awards, which are subject only to service conditions with graded vesting, are recognized as compensation expense, generally on a straight-line basis over the service period, net of estimated forfeitures. The fair values of performance unit awards are recognized as compensation expense, generally on a straight-line basis from the grant date to the end of the performance period. See Note 5, Stock-based compensation. |
Income taxes | Income taxes We provide for income taxes based on pretax income and applicable tax rates in the various jurisdictions in which we operate. Significant judgment is required in determining our provision for income taxes and income tax assets and liabilities, including evaluating uncertainties in the application of accounting principles and complex tax laws. Deferred income taxes are recorded for the expected tax consequences of temporary differences between the bases of assets and liabilities, as well as for loss and tax credit carryforwards for financial reporting purposes and amounts recognized for income tax purposes. We record a valuation allowance to reduce our deferred tax assets to the amount of future tax benefit that is more likely than not to be realized. |
Acquisitions | Acquisitions We first determine whether a set of assets acquired constitute a business and should be accounted for as a business combination. If the assets acquired do not constitute a business, we account for the transaction as an asset acquisition. Business combinations are accounted for by means of the acquisition method of accounting. Under the acquisition method, assets acquired, including IPR&D projects, and liabilities assumed are recorded at their respective fair values as of the acquisition date in our consolidated financial statements. The excess of the fair value of consideration transferred over the fair value of the net assets acquired is recorded as goodwill. Contingent consideration obligations incurred in connection with a business combination (including the assumption of an acquiree’s liability arising from an acquisition it consummated prior to our acquisition) are recorded at their fair values on the acquisition date and remeasured at their fair values each subsequent reporting period until the related contingencies have been resolved. The resulting changes in fair values are recorded in earnings. In contrast, asset acquisitions are accounted for by using a cost accumulation and allocation model. Under this model, the cost of the acquisition is allocated to the assets acquired and liabilities assumed. IPR&D projects with no alternative future use are recorded in R&D expense upon acquisition, and contingent consideration obligations incurred in connection with an asset acquisition are recorded when it is probable that they will occur and they can be reasonably estimated. See Note 3, Acquisitions and divestitures, and Note 18, Fair value measurement. |
Cash equivalents | Cash equivalents We consider cash equivalents to be only those investments that are highly liquid, that are readily convertible to cash and that mature within three months from the date of purchase. |
Interest-bearing securities | Interest-bearing securities We consider our interest-bearing securities investment portfolio as available-for-sale, and accordingly, these investments are recorded at fair value, with unrealized gains and losses recorded in AOCI. Investments with maturities beyond one year may be classified as short-term marketable securities in the Consolidated Balance Sheets due to their highly liquid nature and because they represent the Company’s investments that are available for current operations. See Note 10, Investments, and Note 18, Fair value measurement. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. Cost, which includes amounts related to materials, labor and overhead, is determined in a manner that approximates the first-in, first-out method. Net realizable value is the estimated selling price in the ordinary course of business less reasonably predictable costs of completion, disposal and transportation. See Note 11, Inventories. |
Derivatives | Derivatives We recognize all of our derivative instruments as either assets or liabilities at fair value in the Consolidated Balance Sheets. The accounting for changes in the fair value of a derivative instrument depends on whether the derivative has been formally designated and qualifies as part of a hedging relationship under the applicable accounting standards and, further, on the type of hedging relationship. For derivatives formally designated as hedges, we assess both at inception and quarterly thereafter whether the hedging derivatives are highly effective in offsetting changes in either the fair value or cash flows of the hedged item. Our derivatives that are not designated and do not qualify as hedges are adjusted to fair value through current earnings. See Note 18, Fair value measurement, and Note 19, Derivative instruments. |
Property, plant and equipment, net | Property, plant and equipment, net Property, plant and equipment is recorded at historical cost, net of accumulated depreciation, amortization and, if applicable, impairment charges. We review our property, plant and equipment assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Depreciation is recorded over the assets’ useful lives on a straight-line basis. Leasehold improvements are amortized on a straight-line basis over the shorter of their estimated useful lives or lease terms. See Note 12, Property, plant and equipment. |
Goodwill and other intangible assets | Goodwill and other intangible assets Finite-lived intangible assets are recorded at cost, net of accumulated amortization, and, if applicable, impairment charges. Amortization of finite-lived intangible assets is recorded over the assets’ estimated useful lives on a straight-line basis or based on the pattern in which economic benefits are consumed, if reliably determinable. We review our finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. See Note 13, Goodwill and other intangible assets. The fair values of IPR&D projects acquired in a business combination that are not complete are capitalized and accounted for as indefinite-lived intangible assets until completion or abandonment of the related R&D efforts. Upon successful completion of the project, the capitalized amount is amortized over its estimated useful life. If a project is abandoned, all remaining capitalized amounts are written off immediately. Major risks and uncertainties are often associated with IPR&D projects because we are required to obtain regulatory approvals before marketing the resulting products. Such approvals require completing clinical trials that demonstrate a product candidate is safe and effective. Consequently, the eventual realized value of the acquired IPR&D project may vary from its fair value at the date of acquisition, and IPR&D impairment charges may occur in future periods. Capitalized IPR&D projects are tested for impairment annually and whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. We consider various factors for potential impairment, including the current legal and regulatory environment and the competitive landscape. Adverse clinical trial results, significant delays in obtaining marketing approval, the inability to bring a product to market and the introduction or advancement of competitors’ products could result in partial or full impairment of the related intangible assets. We perform an impairment test of goodwill annually and whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. To date, an impairment of goodwill has not been recorded. See Note 13, Goodwill and other intangible assets. |
Contingencies | 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. Certain of these proceedings are discussed in Note 20, Contingencies and commitments. 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. |
Foreign currency translation | Foreign currency translation The net assets of international subsidiaries whose functional currencies are not in U.S. dollars are translated into U.S. dollars using current exchange rates. The U.S. dollar effects that arise from translation of the net assets of these subsidiaries at changing rates are recognized in AOCI. The subsidiaries’ earnings are translated into U.S. dollars by using average exchange rates. |
Equity investments | Equity investments Marketable and nonmarketable equity securities Investments in publicly traded equity securities with readily determinable fair values are recorded at quoted market prices for identical securities, with changes in fair value recorded in Other income (expense), net, in the Consolidated Statements of Income. Investments in equity securities without readily determinable fair values are recorded at cost minus impairment, if any, adjusted for changes resulting from observable price changes in orderly transactions for identical or similar securities. Such adjustments are recorded in Other income (expense), net, in the Consolidated Statements of Income. |
Equity method investments | Equity method investments Equity investments that give us the ability to exert significant influence, but not control, over an investee for which we have not elected the fair value option are accounted for under the equity method of accounting. In concluding whether we have the ability to exercise significant influence over an investee, we consider factors such as our ownership percentage, voting and other shareholder rights, board of directors representation and the existence of other collaborative or business relationships. The equity method of accounting requires us to allocate the difference between the fair value of securities acquired and our proportionate share of the carrying value of the underlying assets (the basis difference) to various items and amortize such differences over their useful lives. Our share of investees’ earnings or losses and amortization of basis differences, if any, are recorded one quarter in arrears in Other income (expense), net, in the Consolidated Statements of Income. We record impairment losses on our equity method investments if we deem the impairment to be other-than-temporary. We deem an impairment to be other-than-temporary based on various factors, including but not limited to, the length of time the fair value is below the carrying value, volatility of the security price and our intent and ability to retain the investment to allow for a recovery in fair value. For equity method investments for which we have elected the fair value option, changes in fair value are recorded in Other income (expense), net, in the Consolidated Statements of Income. Additionally, we hold investments in limited partnerships, which primarily invest in early-stage biotechnology companies. As a practical expedient, such limited partnership investments are measured by using our proportionate share of the net asset values of the underlying investments held by the limited partnerships, with such changes included in Other income (expense), net, in the Consolidated Statements of Income. |
Recent accounting pronouncements | Recent accounting pronouncements In November 2023, the FASB issued a new accounting standard which improves reportable segment disclosure requirements. The new standard will require enhanced disclosures about a public company’s significant segment expenses and more timely and detailed segment information reporting throughout the fiscal period, including for companies with a single reportable segment. The standard is effective for annual periods beginning after December 15, 2023 and interim periods beginning after December 15, 2024, and early adoption is permitted. We are currently evaluating the impact of this new standard on our consolidated financial statements and related disclosures. In December 2023, the FASB issued a new accounting standard which improves income tax disclosure requirements. The new standard will require more detailed information on several income tax disclosures, such as income taxes paid and the income tax rate reconciliation table. The standard is effective for public business entities such as Amgen with annual periods beginning after December 15, 2024, and early adoption is permitted. We are currently evaluating the impact of this new standard on our consolidated financial statements and related disclosures. |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Summary of Restructuring Charges by Type of Activity | The following table summarizes recorded charges related to the restructuring plan by type of activity and the locations recognized within the Consolidated Statements of Income (in millions): Year ended December 31, 2023 Separation costs Asset impairments and other charges Total Cost of sales $ — $ 36 $ 36 Research and development — 29 29 Selling, general and administrative — 13 13 Other 186 3 189 Total $ 186 $ 81 $ 267 |
Acquisitions and divestitures (
Acquisitions and divestitures (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 (in millions): Amounts Cash and cash equivalents $ 681 Inventories 5,025 Property, plant and equipment, net 318 Finite-lived intangible assets – developed-product-technology rights 19,590 IPR&D 1,060 Goodwill 3,111 Deferred tax asset 834 Deferred tax liability (2,492) Other assets and liabilities, net (294) Total assets acquired, net $ 27,833 The following table summarizes the final total consideration and allocated acquisition date fair values of assets acquired and liabilities assumed, inclusive of measurement period adjustments (in millions): Amounts Cash and cash equivalents $ 86 Marketable securities 235 Inventories 41 Finite-lived intangible assets – developed-product-technology rights 3,499 Goodwill 649 Other liabilities, net (83) Deferred tax liability, net (502) Total assets acquired, net $ 3,925 The following table summarizes the final 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 |
Business Acquisition, Pro Forma Information | The following table presents the unaudited supplemental pro forma results of a hypothetical combined Amgen and Horizon for the years ended December 31, 2023 and 2022, as if the acquisition of Horizon had occurred on January 1, 2022 (in millions): Years ended December 31, 2023 2022 Total revenue $ 30,969 $ 29,964 Net income $ 5,383 $ 2,381 |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue by Product and by Geographic Area | Revenues were as follows (in millions): Year ended December 31, 2023 Year ended December 31, 2022 Year ended December 31, 2021 U.S. ROW Total U.S. ROW Total U.S. ROW Total Prolia $ 2,733 $ 1,315 $ 4,048 $ 2,465 $ 1,163 $ 3,628 $ 2,150 $ 1,098 $ 3,248 ENBREL 3,650 47 3,697 4,044 73 4,117 4,352 113 4,465 Otezla 1,777 411 2,188 1,886 402 2,288 1,804 445 2,249 XGEVA 1,527 585 2,112 1,480 534 2,014 1,434 584 2,018 Repatha 793 842 1,635 608 688 1,296 557 560 1,117 Nplate 996 481 1,477 848 459 1,307 566 461 1,027 KYPROLIS 921 482 1,403 850 397 1,247 736 372 1,108 Aranesp 452 910 1,362 521 900 1,421 537 943 1,480 EVENITY 809 351 1,160 533 254 787 331 199 530 Vectibix 461 523 984 396 497 893 347 526 873 BLINCYTO 566 295 861 336 247 583 278 194 472 TEPEZZA (1) 441 7 448 — — — — — — KRYSTEXXA (1) 272 — 272 — — — — — — Other products (2) 3,874 1,389 5,263 3,776 1,444 5,220 4,194 1,516 5,710 Total product sales (3) 19,272 7,638 26,910 17,743 7,058 24,801 17,286 7,011 24,297 Other revenues 534 746 1,280 852 670 1,522 908 774 1,682 Total revenues $ 19,806 $ 8,384 $ 28,190 $ 18,595 $ 7,728 $ 26,323 $ 18,194 $ 7,785 $ 25,979 ____________ (1) TEPEZZA and KRYSTEXXA were acquired from the acquisition of Horizon on October 6, 2023, and includes product sales from the acquisition date through December 31, 2023. (2) Consists of product sales of our non-principal products, as well as sales prior to the divestiture of our Bergamo and Gensenta subsidiaries in the second quarter of 2023 and fourth quarter of 2022, respectively. (3) Hedging gains and losses, which are included in product sales, were not material for the years ended December 31, 2023, 2022 and 2021. |
Revenues Earned from Major Customers | For the year ended December 31, 2023, on a combined basis, these customers accounted for 79% of total gross revenues as shown in the following table. Certain information with respect to these customers was as follows (dollar amounts in millions): Years ended December 31, 2023 2022 2021 McKesson Corporation: Gross product sales $ 19,035 $ 17,305 $ 15,187 % of total gross revenues 33 % 35 % 33 % Cencora, Inc. (formerly AmerisourceBergen Corporation): Gross product sales $ 16,625 $ 15,443 $ 14,783 % of total gross revenues 29 % 31 % 32 % Cardinal Health, Inc.: Gross product sales $ 9,775 $ 8,319 $ 7,681 % of total gross revenues 17 % 16 % 17 % |
Stock-based compensation (Table
Stock-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Components of Stock-based Compensation Expense | The following table reflects the components of stock-based compensation expense recognized in our Consolidated Statements of Income (in millions): Years ended December 31, 2023 2022 2021 RSUs $ 309 $ 227 $ 183 Performance units 121 132 121 Stock options 43 42 37 Total stock-based compensation expense, pretax 473 401 341 Tax benefit from stock-based compensation expense (102) (86) (74) Total stock-based compensation expense, net of tax $ 371 $ 315 $ 267 |
Summary of RSUs | The following table summarizes information regarding our RSUs: Year ended December 31, 2023 Units Weighted-average Balance nonvested as of December 31, 2022 2.8 $ 228.71 Granted 1.0 $ 237.70 Replacement awards granted - Horizon acquisition 1.7 $ 267.47 Vested (1.3) $ 231.81 Forfeited (0.3) $ 234.35 Balance nonvested as of December 31, 2023 3.9 $ 246.43 |
Summary of Stock Option Assumptions | The weighted-average assumptions used in the option valuation model and the resulting weighted-average grant date fair values of stock options granted were as follows: Years ended December 31, 2023 2022 2021 Closing price of our common stock on grant date $ 235.97 $ 230.92 $ 237.17 Expected volatility (average of implied and historical volatility) 23.3 % 24.5 % 25.6 % Expected life (in years) 5.7 5.7 5.7 Risk-free interest rate 3.4 % 2.8 % 1.0 % Expected dividend yield 3.5 % 3.3 % 2.9 % Fair value of stock options granted $ 41.86 $ 42.43 $ 40.43 |
Summary of Stock Options | The following table summarizes information regarding our stock options: Year ended December 31, 2023 Options Weighted- Weighted- Aggregate Balance unexercised as of December 31, 2022 5.3 $ 207.29 Granted 1.1 $ 235.97 Exercised (0.4) $ 182.33 Expired/forfeited (0.1) $ 234.10 Balance unexercised as of December 31, 2023 5.9 $ 213.90 6.7 $ 438 Vested or expected to vest as of December 31, 2023 5.7 $ 213.15 6.7 $ 427 Exercisable as of December 31, 2023 2.8 $ 190.59 5.0 $ 271 |
Weighted-Average Assumptions | The weighted-average assumptions used in the payout simulation model and the resulting weighted-average grant date fair values of performance units granted were as follows: Years ended December 31, 2023 2022 2021 Closing price of our common stock on grant date $ 235.97 $ 230.92 $ 239.64 Volatility 21.6 % 28.1 % 29.3 % Risk-free interest rate 3.7 % 0.3 % 0.3 % Fair value of units granted $ 252.49 $ 247.48 $ 254.68 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | Income before income taxes included the following (in millions): Years ended December 31, 2023 2022 2021 Domestic $ 4,047 $ 3,026 $ 1,850 Foreign 3,808 4,320 4,851 Total income before income taxes $ 7,855 $ 7,346 $ 6,701 |
Provision for Income Taxes | The provision for income taxes included the following (in millions): Years ended December 31, 2023 2022 2021 Current provision: Federal $ 1,524 $ 1,721 $ 865 State 43 44 18 Foreign 786 304 359 Total current provision 2,353 2,069 1,242 Deferred benefit: Federal (1,124) (1,185) (308) State (25) (27) (9) Foreign (66) (63) (117) Total deferred benefit (1,215) (1,275) (434) Total provision for income taxes $ 1,138 $ 794 $ 808 |
Components of Deferred Tax Assets and Liabilities | Significant components of our deferred tax assets and liabilities were as follows (in millions): December 31, 2023 2022 Deferred income tax assets: NOL and credit carryforwards $ 1,465 $ 1,344 Accrued expenses 668 584 Capitalized research and development expenses 1,333 515 Investments — 270 Expenses capitalized for tax 210 211 Earnings of foreign subsidiaries 1,260 192 Stock-based compensation 159 104 Other 416 317 Total deferred income tax assets 5,511 3,537 Valuation allowance (957) (718) Net deferred income tax assets 4,554 2,819 Deferred income tax liabilities: Acquired intangible assets (3,028) (1,238) Debt (268) (272) Fixed assets (140) (112) Fair value of acquired inventory (349) (5) Investments (99) — Other (224) (249) Total deferred income tax liabilities (4,108) (1,876) Total deferred income taxes, net $ 446 $ 943 |
Reconciliation of Total Gross Amounts of UTBs | The reconciliations of the total gross amounts of UTBs were as follows (in millions): Years ended December 31, 2023 2022 2021 Beginning balance $ 3,770 $ 3,546 $ 3,352 Additions based on tax positions related to the current year 196 151 171 Additions based on tax positions related to prior years 56 90 35 Reductions for tax positions of prior years — (14) (4) Reductions for expiration of statute of limitations (4) (3) — Settlements (6) — (8) Ending balance $ 4,012 $ 3,770 $ 3,546 |
Reconciliation of Federal Statutory Tax Rate | The reconciliations between the federal statutory tax rate applied to income before income taxes and our effective tax rate were as follows: Years ended December 31, 2023 2022 2021 Federal statutory tax rate 21.0 % 21.0 % 21.0 % Foreign earnings (5.1) % (5.6) % (7.8) % Foreign-derived intangible income (1.3) % (1.3) % (1.0) % Credits, Puerto Rico excise tax 0.3 % (2.8) % (3.4) % Interest on uncertain tax positions 2.6 % 1.9 % 1.1 % Credits, primarily federal R&D (3.5) % (2.0) % (2.1) % Acquisition IPR&D — % — % 4.9 % Other, net 0.5 % (0.4) % (0.6) % Effective tax rate 14.5 % 10.8 % 12.1 % |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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): Years ended December 31, 2023 2022 2021 Income (Numerator): Net income for basic and diluted EPS $ 6,717 $ 6,552 $ 5,893 Shares (Denominator): Weighted-average shares for basic EPS 535 538 570 Effect of dilutive securities 3 3 3 Weighted-average shares for diluted EPS 538 541 573 Basic EPS $ 12.56 $ 12.18 $ 10.34 Diluted EPS $ 12.49 $ 12.11 $ 10.28 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-For-Sale Investments | The amortized cost, gross unrealized gains, gross unrealized losses and fair values of interest-bearing securities, which are considered available-for-sale, by type of security were as follows (in millions): Types of securities as of December 31, 2023 Amortized Gross Gross Fair U.S. Treasury bills $ — $ — $ — $ — Money market mutual funds 10,266 — — 10,266 Other short-term interest-bearing securities 138 — — 138 Total available-for-sale investments $ 10,404 $ — $ — $ 10,404 Types of securities as of December 31, 2022 Amortized Gross Gross Fair U.S. Treasury bills $ 1,676 $ — $ — $ 1,676 Money market mutual funds 2,659 — — 2,659 Other short-term interest-bearing securities — — — — Total available-for-sale investments $ 4,335 $ — $ — $ 4,335 |
Schedule of Fair Values by Classification | The fair values of available-for-sale investments by location in the Consolidated Balance Sheets were as follows (in millions): December 31, Consolidated Balance Sheets locations 2023 2022 Cash and cash equivalents $ 10,404 $ 2,659 Marketable securities — 1,676 Total available-for-sale investments $ 10,404 $ 4,335 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following (in millions): December 31, 2023 2022 Raw materials $ 993 $ 828 Work in process 5,747 3,098 Finished goods 2,778 1,004 Total inventories (1) $ 9,518 $ 4,930 ____________ (1) The increase to Inventories was primarily due to the estimated fair value of the acquired inventory from the Horizon acquisition. See Note 3, Acquisitions and divestitures. |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Components of Property, Plant and Equipment | Property, plant and equipment consisted of the following (dollar amounts in millions): December 31, Useful life (in years) 2023 2022 Land — $ 339 $ 292 Buildings and improvements 10-40 4,507 4,201 Manufacturing equipment 8-12 3,220 3,105 Laboratory equipment 8-12 1,346 1,277 Fixed equipment 12 2,526 2,478 Capitalized software 3-5 1,320 1,215 Other 5-10 941 929 Construction in progress — 1,550 1,213 Property, plant and equipment, gross 15,749 14,710 Less accumulated depreciation and amortization (9,808) (9,283) Property, plant and equipment, net $ 5,941 $ 5,427 |
Property, Plant and Equipment by Geographic Area | Certain geographic information with respect to property, plant and equipment, net (long-lived assets), was as follows (in millions): December 31, 2023 2022 U.S. $ 3,658 $ 3,154 Puerto Rico 1,148 1,247 ROW 1,135 1,026 Total property, plant and equipment, net $ 5,941 $ 5,427 |
Goodwill and other intangible a
Goodwill and other intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amounts of goodwill were as follows (in millions): December 31, 2023 2022 Beginning balance $ 15,529 $ 14,890 Changes to goodwill resulting from acquisitions and divestitures, net (1) 3,089 651 Currency translation adjustments 11 (12) Ending balance $ 18,629 $ 15,529 ____________ (1) For 2023, the increase to Goodwill was primarily due to goodwill resulting from the acquisition of Horizon. For 2022, the increase to goodwill was due to goodwill resulting from the acquisition of ChemoCentryx, changes to the acquisition date fair values of net assets acquired in the acquisition of Teneobio and the nonstrategic Gensenta divestiture. See Note 3, Acquisitions and divestitures. |
Schedule of Identifiable Intangible Assets | Other intangible assets consisted of the following (in millions): December 31, 2023 2022 Gross Accumulated Other intangible Gross Accumulated Other intangible Finite-lived intangible assets: Developed-product-technology rights $ 48,631 $ (18,049) $ 30,582 $ 29,028 $ (15,045) $ 13,983 Licensing rights 3,865 (3,265) 600 3,864 (3,123) 741 Marketing-related rights 1,339 (1,264) 75 1,326 (1,167) 159 R&D technology rights 1,394 (1,228) 166 1,378 (1,190) 188 Total finite-lived intangible assets 55,229 (23,806) 31,423 35,596 (20,525) 15,071 Indefinite-lived intangible assets: IPR&D 1,218 — 1,218 1,009 — 1,009 Total other intangible assets $ 56,447 $ (23,806) $ 32,641 $ 36,605 $ (20,525) $ 16,080 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Summary of Operating Leases | The following table summarizes information related to our leases, all of which are classified as operating, included in our Consolidated Balance Sheets (in millions): December 31, Consolidated Balance Sheets locations 2023 2022 Assets: Other noncurrent assets $ 651 $ 579 Liabilities: Accrued liabilities $ 119 $ 156 Other noncurrent liabilities 691 539 Total lease liabilities $ 810 $ 695 The components of net lease costs were as follows (in millions): Years ended December 31, Lease costs 2023 2022 2021 Operating (1) $ 208 $ 218 $ 237 Sublease income (28) (32) (38) Total net lease costs $ 180 $ 186 $ 199 ____________ (1) Includes short-term leases and variable lease costs, which were not material for the years ended December 31, 2023, 2022 and 2021. The weighted-average remaining lease terms and weighted-average discount rates were as follows: December 31, 2023 2022 Weighted-average remaining lease term (in years) 9.7 8.2 Weighted-average discount rate 3.6 % 2.7 % Cash and noncash information related to our leases was as follows (in millions): Years ended December 31, 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 182 $ 171 $ 190 ROU assets obtained in exchange for lease obligations: Operating leases $ 245 $ 191 $ 340 |
Maturities of Lease Liabilities | Maturities of lease liabilities as of December 31, 2023, were as follows (in millions): Maturity dates Amounts 2024 $ 138 2025 121 2026 109 2027 95 2028 74 Thereafter 440 Total lease payments (1) 977 Less imputed interest (167) Present value of lease liabilities $ 810 ____________ (1) Includes future rental commitments for abandoned leases of $67 million. We expect to receive total future rental income of $70 million related to noncancellable subleases for abandoned facilities. |
Other current assets and accr_2
Other current assets and accrued liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Other Current Assets | Other current assets consisted of the following (in millions): December 31, 2023 2022 Prepaid expenses $ 1,647 $ 1,204 Corporate partner receivables 502 700 Tax receivables 172 129 Other 281 355 Total other current assets $ 2,602 $ 2,388 |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following (in millions): December 31, 2023 2022 Sales deductions $ 7,271 $ 5,986 Income taxes payable 1,664 1,195 Employee compensation and benefits 1,381 1,099 Dividends payable 1,205 1,137 Accrued interest payable 936 470 Other 2,902 2,637 Total accrued liabilities $ 15,359 $ 12,524 |
Financing arrangements (Tables)
Financing arrangements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowings | Our borrowings consisted of the following (in millions): December 31, 2023 2022 0.41% CHF700 million bonds due 2023 (0.41% 2023 Swiss franc Bonds) $ — $ 757 2.25% notes due 2023 (2.25% 2023 Notes) — 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 5.25% notes due 2025 (5.25% 2025 Notes) 2,000 — Term loan due April 2025 2,000 — 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) 828 803 5.507% notes due 2026 (5.507% 2026 Notes) 1,500 — 2.60% notes due 2026 (2.60% 2026 Notes) 1,250 1,250 Term loan due October 2026 2,000 — 5.50% £475 million notes due 2026 (5.50% 2026 pound sterling Notes) 605 574 2.20% notes due 2027 (2.20% 2027 Notes) 1,724 1,724 3.20% notes due 2027 (3.20% 2027 Notes) 1,000 1,000 5.15% notes due 2028 (5.15% 2028 Notes) 3,750 — 1.65% notes due in 2028 (1.65% 2028 Notes) 1,234 1,234 3.00% notes due 2029 (3.00% 2029 Notes) 750 750 4.05% notes due 2029 (4.05% 2029 Notes) 1,250 1,250 4.00% £700 million notes due 2029 (4.00% 2029 pound sterling Notes) 892 846 2.45% notes due 2030 (2.45% 2030 Notes) 1,250 1,250 5.25% notes due 2030 (5.25% 2030 Notes) 2,750 — 2.30% notes due 2031 (2.30% 2031 Notes) 1,250 1,250 2.00% notes due 2032 (2.00% 2032 Notes) 1,001 1,051 3.35% notes due 2032 (3.35% 2032 Notes) 1,000 1,000 4.20% notes due 2033 (4.20% 2033 Notes) 750 750 5.25% notes due 2033 (5.25% 2033 Notes) 4,250 — 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) 1,803 2,000 5.75% notes due 2040 (5.75% 2040 Notes) 373 373 2.80% notes due 2041 (2.80% 2041 Notes) 949 1,110 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 5.60% notes due 2043 (5.60% 2043 Notes) 2,750 — 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) 2,132 2,250 4.663% notes due 2051 (4.663% 2051 Notes) 3,541 3,541 3.00% notes due 2052 (3.00% 2052 Notes) 999 1,254 4.20% notes due 2052 (4.20% 2052 Notes) 950 1,000 4.875% notes due 2053 (4.875% 2053 Notes) 1,000 1,000 December 31, 2023 2022 5.65% notes due 2053 (5.65% 2053 Notes) 4,250 — 2.77% notes due 2053 (2.77% 2053 Notes) 940 940 4.40% notes due 2062 (4.40% 2062 Notes) 1,200 1,250 5.75% notes due 2063 (5.75% 2063 Notes) 2,750 — Other notes due 2097 100 100 Unamortized bond discounts, premiums and issuance costs, net (1,420) (1,246) Fair value adjustments (314) (437) Other 17 12 Total carrying value of debt 64,613 38,945 Less current portion (1,443) (1,591) Total long-term debt $ 63,170 $ 37,354 In March 2023, in connection with the acquisition of Horizon (see Note 3, Acquisitions and divestitures —Acquisition of Horizon Therapeutics plc ), we issued the following series of notes (in millions): Principal Amount 5.25% 2025 Notes $ 2,000 5.507% 2026 Notes 1,500 5.15% 2028 Notes 3,750 5.25% 2030 Notes 2,750 5.25% 2033 Notes 4,250 5.60% 2043 Notes 2,750 5.65% 2053 Notes 4,250 5.75% 2063 Notes 2,750 Total $ 24,000 |
Schedule of Interest Rate Derivatives | As of December 31, 2023 and 2022, the effective interest rates on notes for which we have entered into interest rate swap contracts and the related notional amounts of these contracts were as follows (dollar amounts in millions): Notes Notional amounts Effective interest rates 3.625% 2024 Notes $ 1,400 SOFR + 3.4% 3.125% 2025 Notes 1,000 SOFR + 2.1% 2.60% 2026 Notes 1,250 SOFR + 2.1% 2.45% 2030 Notes 1,000 SOFR + 1.3% 2.30% 2031 Notes 500 SOFR + 1.1% 4.663% 2051 Notes 1,500 SOFR + 4.3% Total notional amounts $ 6,650 |
Aggregate Contractual Maturities of Long-Term Debt Obligations | The aggregate contractual maturities of all borrowings due subsequent to December 31, 2023, are as follows (in millions): Maturity dates Amounts 2024 $ 1,403 2025 5,500 2026 6,183 2027 2,724 2028 4,984 Thereafter 45,553 Total $ 66,347 |
Stockholders' equity (Tables)
Stockholders' equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Summary of Stock Repurchase Program Activity | Activity under our stock repurchase program, on a trade date basis, was as follows (in millions): Years ended December 31, 2023 2022 2021 Shares Dollars Shares Dollars Shares Dollars First quarter — $ — 24.6 $ 5,410 3.7 $ 865 Second quarter — — — — 6.5 1,592 Third quarter — — 1.5 900 4.6 1,069 Fourth quarter — — — — 6.9 1,461 Total stock repurchases — $ — 26.1 $ 6,310 21.7 $ 4,987 |
Components of AOCI | The components of AOCI were as follows (in millions): Foreign Cash flow Available-for-sale Other AOCI Balance as of December 31, 2020 $ (709) $ (263) $ 1 $ (14) $ (985) Foreign currency translation adjustments (135) — — — (135) Unrealized gains (losses) — 159 (1) — 158 Reclassification adjustments to income — 253 — — 253 Other gains — — — 1 1 Income taxes — (88) — — (88) Balance as of December 31, 2021 (844) 61 — (13) (796) Foreign currency translation adjustments 496 — — — 496 Unrealized gains — 84 — — 84 Reclassification adjustments to income — 2 — — 2 Other gains — — — 2 2 Income taxes — (19) — — (19) Balance as of December 31, 2022 (348) 128 — (11) (231) Foreign currency translation adjustments 50 — — — 50 Unrealized gains — 28 — — 28 Reclassification adjustments to income — (222) — — (222) Other gains — — — 42 42 Income taxes — 44 — — 44 Balance as of December 31, 2023 $ (298) $ (22) $ — $ 31 $ (289) |
Reclassifications Out of AOCI | Reclassifications out of AOCI and into earnings were as follows (in millions): Years ended December 31, Components of AOCI 2023 2022 2021 Consolidated Statements of Income locations Cash flow hedges: Foreign currency contract gains (losses) $ 180 $ 231 $ (8) Product sales Cross-currency swap contract gains (losses) 42 (233) (245) Other income (expense), net 222 (2) (253) Income before income taxes (50) — 55 Provision for income taxes $ 172 $ (2) $ (198) Net income |
Fair value measurement (Tables)
Fair value measurement (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets and Liabilities on 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): Fair value measurement as of December 31, 2023, using: Quoted prices in Significant other Significant Total Assets: Available-for-sale securities: U.S. Treasury bills $ — $ — $ — $ — Money market mutual funds 10,266 — — 10,266 Other short-term interest-bearing securities — 138 — 138 Other investments — — — — Equity securities 4,514 — — 4,514 Derivatives: Foreign currency forward contracts — 145 — 145 Cross-currency swap contracts — — — — Interest rate swap contracts — — — — Total assets $ 14,780 $ 283 $ — $ 15,063 Liabilities: Derivatives: Foreign currency forward contracts $ — $ 116 $ — $ 116 Cross-currency swap contracts — 405 — 405 Interest rate swap contracts — 571 — 571 Forward interest rate contracts — — — — Contingent consideration obligations — — 96 96 Total liabilities $ — $ 1,092 $ 96 $ 1,188 Fair value measurement as of December 31, 2022, using: Quoted prices in Significant other Significant Total Assets: Available-for-sale securities: U.S. Treasury bills $ 1,676 $ — $ — $ 1,676 Money market mutual funds 2,659 — — 2,659 Other short-term interest-bearing securities — — — — Other investments — 130 — 130 Equity securities 480 — 335 815 Derivatives: Foreign currency forward contracts — 287 — 287 Cross-currency swap contracts — 54 — 54 Total assets $ 4,815 $ 471 $ 335 $ 5,621 Liabilities: Derivatives: Foreign currency forward contracts $ — $ 76 $ — $ 76 Cross-currency swap contracts — 541 — 541 Interest rate swap contracts — 776 — 776 Forward interest rate contracts — 5 — 5 Contingent consideration obligations — — 270 270 Total liabilities $ — $ 1,398 $ 270 $ 1,668 |
Contingent Consideration Obligations | Changes in the carrying amounts of contingent consideration obligations were as follows (in millions): Years ended December 31, 2023 2022 2021 Beginning balance $ 270 $ 342 $ 33 Additions — — 309 Payments (9) (7) (7) Net changes in valuations (165) (65) 7 Ending balance $ 96 $ 270 $ 342 |
Derivative instruments (Tables)
Derivative instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Cross-Currency Swaps | The notional amounts and interest rates of our cross-currency swaps as of December 31, 2023, were as follows (notional amounts in millions): Foreign currency U.S. dollars Hedged notes Notional amounts Interest rates Notional amounts Interest rates 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 4.6 % |
Summary of Unrealized Gains and Losses Recognized in AOCI | The unrealized gains and losses recognized in AOCI for our derivative instruments designated as cash flow hedges were as follows (in millions): Years ended December 31, Derivatives in cash flow hedging relationships 2023 2022 2021 Foreign currency forward contracts $ (14) $ 308 $ 373 Cross-currency swap contracts 73 (219) (214) Forward interest rate contracts (31) (5) — Total unrealized gains $ 28 $ 84 $ 159 |
Hedged Liabilities and Cumulative Amount | The hedged liabilities and related cumulative-basis adjustments for fair value hedges of those liabilities were recorded in the 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) December 31, December 31, Consolidated Balance Sheets locations 2023 2022 2023 2022 Current portion of long-term debt $ 1,441 $ 82 $ 41 $ 82 Long-term debt $ 4,788 $ 6,017 $ (355) $ (519) ____________ (1) Current portion of long-term debt includes $69 million and $82 million of carrying value with discontinued hedging relationships as of December 31, 2023 and 2022, respectively. Long-term debt includes $288 million and $357 million of carrying value with discontinued hedging relationships as of December 31, 2023 and 2022, respectively. (2) Current portion of long-term debt includes $69 million and $82 million of hedging adjustments on discontinued hedging relationships as of December 31, 2023 and 2022, respectively. Long-term debt includes $188 million and $257 million of hedging adjustments on discontinued hedging relationships as of December 31, 2023 and 2022, respectively. |
Summary 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): Year ended December 31, 2023 Product sales Other income (expense), net Interest expense, net Total amounts recorded in income and (expense) line items presented in the Consolidated Statements of Income $ 26,910 $ 2,833 $ (2,875) The effects of cash flow and fair value hedging: Gains on cash flow hedging relationships reclassified out of AOCI: Foreign currency forward contracts $ 180 $ — $ — Cross-currency swap contracts $ — $ 42 $ — (Losses) gains on fair value hedging relationships—interest rate swap agreements: Hedged items (1) $ — $ — $ (118) Derivatives designated as hedging instruments $ — $ — $ 205 Year ended December 31, 2022 Product sales Other income (expense), net Interest expense, net Total amounts recorded in income and (expense) line items presented in the Consolidated Statements of Income $ 24,801 $ (814) $ (1,406) The effects of cash flow and fair value hedging: Gains (losses) on cash flow hedging relationships reclassified out of AOCI: Foreign currency forward contracts $ 231 $ — $ — Cross-currency swap contracts $ — $ (233) $ — Gains (losses) on fair value hedging relationships—interest rate swap agreements: Hedged items (1) $ — $ — $ 716 Derivatives designated as hedging instruments $ — $ — $ (636) Year ended December 31, 2021 Product sales Other income (expense), net Interest expense, net Total amounts recorded in income and (expense) line items presented in the Consolidated Statements of Income $ 24,297 $ 259 $ (1,197) The effects of cash flow and fair value hedging: Losses on cash flow hedging relationships reclassified out of AOCI: Foreign currency forward contracts $ (8) $ — $ — Cross-currency swap contracts $ — $ (245) $ — Gains (losses) on fair value hedging relationships—interest rate swap agreements: Hedged items (1) $ — $ — $ 281 Derivatives designated as hedging instruments $ — $ — $ (192) __________ (1) |
Fair Value of Derivatives | The fair values of derivatives included in the Consolidated Balance Sheets were as follows (in millions): Derivative assets Derivative liabilities December 31, 2023 Consolidated Balance Sheets locations Fair values Consolidated Balance Sheets locations Fair values Derivatives designated as hedging instruments: Foreign currency forward contracts Other current assets/ Other noncurrent assets $ 145 Accrued liabilities/ Other noncurrent liabilities $ 116 Cross-currency swap contracts Other current assets/ Other noncurrent assets — Accrued liabilities/ Other noncurrent liabilities 405 Interest rate swap contracts Other current assets/ Other noncurrent assets — Accrued liabilities/ Other noncurrent liabilities 571 Forward interest rate contracts Other current assets/ Other noncurrent assets — Accrued liabilities/ Other noncurrent liabilities — Total derivatives designated as hedging instruments 145 1,092 Total derivatives $ 145 $ 1,092 Derivative assets Derivative liabilities December 31, 2022 Consolidated Balance Sheets locations Fair values Consolidated Balance Sheets locations Fair values Derivatives designated as hedging instruments: Foreign currency forward contracts Other current assets/ Other noncurrent assets $ 287 Accrued liabilities/ Other noncurrent liabilities $ 76 Cross-currency swap contracts Other current assets/ Other noncurrent assets 54 Accrued liabilities/ Other noncurrent liabilities 541 Interest rate swap contracts Other current assets/ Other noncurrent assets — Accrued liabilities/ Other noncurrent liabilities 776 Forward interest rate contracts Other current assets/ Other noncurrent assets — Accrued liabilities/ Other noncurrent liabilities 5 Total derivatives designated as hedging instruments 341 1,398 Total derivatives $ 341 $ 1,398 For additional information, see Note 18, Fair value measurement. |
Contingencies and commitments (
Contingencies and commitments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
U.S. Repatriation Tax Commitments | The following table summarizes the remaining scheduled repatriation tax payments as of December 31, 2023 (in millions): Amounts 2024 $ 1,467 2025 1,834 Total remaining U.S. repatriation tax commitments $ 3,301 |
Summary of significant accoun_3
Summary of significant accounting policies - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) operating_segment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Number of business segment | operating_segment | 1 | ||
Sales return provisions as a percentage of gross product sales (less than) | 1% | ||
Advertising cost | $ | $ 647 | $ 841 | $ 843 |
Minimum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Revenue payment term | 30 days | ||
Maximum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Revenue payment term | 120 days |
Restructuring - Summary of Rest
Restructuring - Summary of Restructuring Charges by Type of Activity (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | $ 267 |
Separation costs | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 186 |
Asset impairments and other charges | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 81 |
Cost of sales | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 36 |
Cost of sales | Separation costs | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 0 |
Cost of sales | Asset impairments and other charges | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 36 |
Research and development | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 29 |
Research and development | Separation costs | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 0 |
Research and development | Asset impairments and other charges | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 29 |
Selling, general and administrative | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 13 |
Selling, general and administrative | Separation costs | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 0 |
Selling, general and administrative | Asset impairments and other charges | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 13 |
Other | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 189 |
Other | Separation costs | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 186 |
Other | Asset impairments and other charges | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | $ 3 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Accrued liabilities | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring liability | $ 45 |
Acquisitions and divestitures -
Acquisitions and divestitures - Acquisition of Horizon Therapeutics plc (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Oct. 06, 2023 | Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 18,629 | $ 18,629 | $ 18,629 | $ 15,529 | $ 14,890 | |
Horizon Therapeutics | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition price per share (in usd per share) | $ 116.50 | |||||
Consideration transferred | $ 27,800 | |||||
Acquisition related costs | 487 | |||||
Integration related costs | 167 | |||||
Acquisition related transaction costs | 320 | |||||
Cash purchase price | 26,700 | |||||
Consideration transferred for vested and outstanding awards | 523 | |||||
Consideration transferred for replacement awards | 180 | |||||
Liabilities incurred | $ 382 | |||||
Replacement equity awards issued (in shares) | 1.7 | |||||
Inventories | $ 5,025 | 5,000 | $ 5,000 | $ 5,000 | ||
Business combination, turnover period of inventory acquired | 27 months | |||||
Deferred tax liabilities | 2,492 | |||||
Deferred tax asset | 834 | |||||
Goodwill | 3,111 | |||||
Revenue of acquiree | 955 | |||||
Net losses of acquiree | $ 1,200 | |||||
Horizon Therapeutics | Fair Value Adjustment to Inventory | ||||||
Business Acquisition [Line Items] | ||||||
Net losses of acquiree | $ 633 | |||||
Horizon Therapeutics | Amortization Of Intangibles Assets | ||||||
Business Acquisition [Line Items] | ||||||
Net losses of acquiree | $ 479 | |||||
Horizon Therapeutics | Developed-product-technology rights | ||||||
Business Acquisition [Line Items] | ||||||
Estimated fair value | $ 20,700 | |||||
Weighted average period of amortization | 10 years |
Acquisitions and divestitures_2
Acquisitions and divestitures - Summary of Total Consideration for Horizon Therapeutics plc (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Oct. 06, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 18,629 | $ 15,529 | $ 14,890 | |
Horizon Therapeutics | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 681 | |||
Inventories | $ 5,000 | 5,025 | ||
Property, plant and equipment, net | 318 | |||
Acquired in-process research and development | 1,060 | |||
Goodwill | 3,111 | |||
Deferred tax asset | 834 | |||
Deferred tax liability, net | (2,492) | |||
Other liabilities, net | (294) | |||
Total assets acquired, net | 27,833 | |||
Horizon Therapeutics | Developed-product-technology rights | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible assets – developed-product-technology rights | $ 19,590 |
Acquisitions and divestitures_3
Acquisitions and divestitures - Summary of Pro Forma Revenue for Horizon Therapeutics (Details) - Horizon Therapeutics - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | ||
Total revenue | $ 30,969 | $ 29,964 |
Net income | $ 5,383 | $ 2,381 |
Acquisitions and divestitures_4
Acquisitions and divestitures - ChemoCentryx Inc. Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Oct. 20, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 18,629 | $ 15,529 | $ 14,890 | |
ChemoCentryx, Inc. | ||||
Business Acquisition [Line Items] | ||||
Acquisition price per share (in usd per share) | $ 52 | |||
Total consideration | $ 3,900 | |||
Goodwill, net decrease | $ 18 | |||
Cash purchase price | 3,700 | |||
Business acquisition, cash consideration paid to equity holders for pre-acquisition services | 181 | |||
Inventories | $ 41 | |||
Business combination, turnover period of inventory acquired | 13 months | |||
Deferred tax liability, net | $ (502) | |||
Goodwill | 649 | |||
ChemoCentryx, Inc. | Developed-product-technology rights | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible assets | $ 3,499 | |||
Weighted average period of amortization | 11 years |
Acquisitions and divestitures_5
Acquisitions and divestitures - Summary of Total Consideration for ChemoCentryx Inc (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Oct. 20, 2022 | Dec. 31, 2021 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 18,629 | $ 15,529 | $ 14,890 | |
ChemoCentryx, Inc. | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 86 | |||
Marketable securities | 235 | |||
Inventories | 41 | |||
Goodwill | 649 | |||
Other liabilities, net | (83) | |||
Deferred tax liability, net | (502) | |||
Total assets acquired, net | 3,925 | |||
ChemoCentryx, Inc. | Developed-product-technology rights | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible assets – developed-product-technology rights | $ 3,499 |
Acquisitions and divestitures_6
Acquisitions and divestitures - Teneobio Inc. (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) program | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Business Acquisition [Line Items] | ||||
Goodwill, adjustment | $ 3,089 | $ 651 | ||
Additions | 0 | 0 | $ 309 | |
Goodwill | $ 15,529 | 18,629 | 15,529 | $ 14,890 |
Teneobio | ||||
Business Acquisition [Line Items] | ||||
Goodwill, adjustment | $ 22 | |||
Cash purchase price | 993 | |||
Maximum additional consideration due contingent on certain milestones | 1,600 | 1,600 | ||
Additions | 299 | |||
Deferred tax liabilities | 244 | 244 | ||
Goodwill | 273 | 273 | ||
Teneobio | R & D Technology rights | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible assets acquired | $ 115 | |||
Weighted average period of amortization | 10 years | |||
Teneobio | Licensing rights | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible assets acquired | $ 41 | |||
Teneobio | IPR&D | ||||
Business Acquisition [Line Items] | ||||
Acquired in-process research and development | 991 | 991 | ||
Number of oncology programs comprising remaining IPR&D | program | 4 | |||
Teneobio | IPR&D | AMG 340 | ||||
Business Acquisition [Line Items] | ||||
Acquired in-process research and development | $ 784 | $ 784 |
Acquisitions and divestitures_7
Acquisitions and divestitures - Summary of Total Consideration for Teneobio Inc (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | ||||
Contingent consideration | $ 0 | $ 0 | $ 309 | |
Goodwill | $ 15,529 | $ 18,629 | 15,529 | $ 14,890 |
Teneobio | ||||
Business Acquisition [Line Items] | ||||
Cash purchase price | 993 | |||
Contingent consideration | 299 | |||
Total consideration | 1,292 | |||
Cash and cash equivalents | 100 | 100 | ||
Goodwill | 273 | 273 | ||
Other assets, net | 16 | 16 | ||
Deferred tax liability | (244) | (244) | ||
Total assets acquired, net | 1,292 | 1,292 | ||
Teneobio | R & D Technology rights | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible assets | 115 | 115 | ||
Teneobio | Licensing rights | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible assets | 41 | 41 | ||
Teneobio | IPR&D | ||||
Business Acquisition [Line Items] | ||||
IPR&D | $ 991 | $ 991 |
Acquisitions and divestitures_8
Acquisitions and divestitures - Five Prime Therapeutics Inc. (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Apr. 16, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | ||||
Total cash consideration | $ 26,989 | $ 3,839 | $ 2,529 | |
Acquired in-process research and development | $ 0 | $ 0 | $ 1,505 | |
Five Prime Therapeutics, Inc. | ||||
Business Acquisition [Line Items] | ||||
Total cash consideration | $ 1,600 | |||
Acquired in-process research and development | 1,500 | |||
Deferred tax asset | 177 | |||
Other liabilities | $ 47 |
Acquisitions and divestitures_9
Acquisitions and divestitures - Divestiture of Gensenta (Details) - USD ($) $ in Millions | 12 Months Ended | |
Nov. 02, 2022 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | ||
Proceeds from divestiture of businesses | $ 130 | |
Divested assets | $ 86 | |
Foreign currency translation, loss on divestiture of a business | $ 615 | |
Other general expense | ||
Business Acquisition [Line Items] | ||
Loss on divestiture | $ 567 |
Revenues - Narrative (Details)
Revenues - Narrative (Details) - operating_segment | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Concentration Risk [Line Items] | ||
Number of operating segments | 1 | |
Percentage of net trade receivables due from customers located outside the United States, primarily in Europe | 22% | 26% |
Three Customers | Accounts Receivable | Customer Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 75% | 75% |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenue by Product and by Geographic Area (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 28,190 | $ 26,323 | $ 25,979 |
U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 19,806 | 18,595 | 18,194 |
ROW | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 8,384 | 7,728 | 7,785 |
Prolia | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 4,048 | 3,628 | 3,248 |
Prolia | U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 2,733 | 2,465 | 2,150 |
Prolia | ROW | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 1,315 | 1,163 | 1,098 |
ENBREL | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 3,697 | 4,117 | 4,465 |
ENBREL | U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 3,650 | 4,044 | 4,352 |
ENBREL | ROW | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 47 | 73 | 113 |
Otezla | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 2,188 | 2,288 | 2,249 |
Otezla | U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 1,777 | 1,886 | 1,804 |
Otezla | ROW | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 411 | 402 | 445 |
XGEVA | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 2,112 | 2,014 | 2,018 |
XGEVA | U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 1,527 | 1,480 | 1,434 |
XGEVA | ROW | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 585 | 534 | 584 |
Repatha | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 1,635 | 1,296 | 1,117 |
Repatha | U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 793 | 608 | 557 |
Repatha | ROW | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 842 | 688 | 560 |
Nplate | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 1,477 | 1,307 | 1,027 |
Nplate | U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 996 | 848 | 566 |
Nplate | ROW | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 481 | 459 | 461 |
KYPROLIS | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 1,403 | 1,247 | 1,108 |
KYPROLIS | U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 921 | 850 | 736 |
KYPROLIS | ROW | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 482 | 397 | 372 |
Aranesp | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 1,362 | 1,421 | 1,480 |
Aranesp | U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 452 | 521 | 537 |
Aranesp | ROW | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 910 | 900 | 943 |
EVENITY | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 1,160 | 787 | 530 |
EVENITY | U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 809 | 533 | 331 |
EVENITY | ROW | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 351 | 254 | 199 |
Vectibix | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 984 | 893 | 873 |
Vectibix | U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 461 | 396 | 347 |
Vectibix | ROW | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 523 | 497 | 526 |
BLINCYTO | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 861 | 583 | 472 |
BLINCYTO | U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 566 | 336 | 278 |
BLINCYTO | ROW | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 295 | 247 | 194 |
TEPEZZA | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 448 | 0 | 0 |
TEPEZZA | U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 441 | 0 | 0 |
TEPEZZA | ROW | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 7 | 0 | 0 |
KRYSTEXXA | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 272 | 0 | 0 |
KRYSTEXXA | U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 272 | 0 | 0 |
KRYSTEXXA | ROW | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Other products | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 5,263 | 5,220 | 5,710 |
Other products | U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 3,874 | 3,776 | 4,194 |
Other products | ROW | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 1,389 | 1,444 | 1,516 |
Total product sales | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 26,910 | 24,801 | 24,297 |
Total product sales | U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 19,272 | 17,743 | 17,286 |
Total product sales | ROW | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 7,638 | 7,058 | 7,011 |
Other revenues | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 1,280 | 1,522 | 1,682 |
Other revenues | U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 534 | 852 | 908 |
Other revenues | ROW | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 746 | $ 670 | $ 774 |
Revenues - Revenues Earned from
Revenues - Revenues Earned from Major Customers (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue, Major Customer [Line Items] | |||
Gross product sales | $ 28,190 | $ 26,323 | $ 25,979 |
Total product sales | |||
Revenue, Major Customer [Line Items] | |||
Gross product sales | $ 26,910 | 24,801 | 24,297 |
Three Customers | Revenue Benchmark | Customer Concentration Risk | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk, percentage | 79% | ||
McKesson Corporation | Total product sales | |||
Revenue, Major Customer [Line Items] | |||
Gross product sales | $ 19,035 | $ 17,305 | $ 15,187 |
McKesson Corporation | Total product sales | Revenue Benchmark | Customer Concentration Risk | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk, percentage | 33% | 35% | 33% |
Cencora, Inc. | Total product sales | |||
Revenue, Major Customer [Line Items] | |||
Gross product sales | $ 16,625 | $ 15,443 | $ 14,783 |
Cencora, Inc. | Total product sales | Revenue Benchmark | Customer Concentration Risk | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk, percentage | 29% | 31% | 32% |
Cardinal Health, Inc. | Total product sales | |||
Revenue, Major Customer [Line Items] | |||
Gross product sales | $ 9,775 | $ 8,319 | $ 7,681 |
Cardinal Health, Inc. | Total product sales | Revenue Benchmark | Customer Concentration Risk | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk, percentage | 17% | 16% | 17% |
Stock-based compensation - Narr
Stock-based compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 4 Months Ended | 12 Months Ended | ||
Feb. 14, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Amount by which the pool of available shares will be reduced for each stock option granted (in shares) | 1 | |||
The amount of common stock available under the plan for future grants and/or issuances (in shares) | 12,000,000 | |||
Total unrecognized compensation cost related to nonvested awards | $ 498 | |||
Weighted average number of years over which compensation cost related to nonvested awards is expected to be recognized | 1 year 7 months 6 days | |||
Period over which the grants of equity instruments vest | 3 years | |||
Number of common shares issued for each performance unit earned (in shares) | 1 | 1 | 1 | |
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
The number of shares by which the pool of available shares will be reduced for other types of awards granted (in shares) | 1.9 | |||
Number of shares added back for tax withholding on full value awards (in shares) | 1.9 | |||
Weighted average grant date fair value, granted (in usd per share) | $ 237.70 | $ 234.47 | $ 233.10 | |
Total fair value of units that vested during the year | $ 309 | $ 192 | $ 166 | |
Units outstanding (in shares) | 3,900,000 | 2,800,000 | ||
Weighted-average grant date fair value (in usd per share) | $ 246.43 | $ 228.71 | ||
Units granted (in shares) | 1,000,000 | |||
Units, forfeited (in shares) | 300,000 | |||
Weighted average grant date fair value, forfeited (in usd per share) | $ 234.35 | |||
RSUs | Subsequent Event | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards accelerated and settled | $ 42 | |||
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expiration period of stock options from date of grant | 10 years | |||
Total intrinsic value of stock options exercised during the year | $ 33 | $ 67 | 56 | |
Actual tax benefits realized from tax deductions from option exercises | $ 7 | $ 14 | $ 12 | |
Performance units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
The number of shares by which the pool of available shares will be reduced for other types of awards granted (in shares) | 1.9 | |||
Number of shares added back for tax withholding on full value awards (in shares) | 1.9 | |||
Weighted average grant date fair value, granted (in usd per share) | $ 252.49 | $ 247.48 | $ 254.68 | |
Total fair value of units that vested during the year | $ 109 | $ 150 | $ 149 | |
Total unrecognized compensation cost related to nonvested awards | $ 146 | |||
Weighted average number of years over which compensation cost related to nonvested awards is expected to be recognized | 1 year | |||
Units outstanding (in shares) | 1,700,000 | 1,600,000 | ||
Weighted-average grant date fair value (in usd per share) | $ 251.41 | $ 250.27 | ||
Units granted (in shares) | 700,000 | |||
Units, forfeited (in shares) | 200,000 | |||
Weighted average grant date fair value, forfeited (in usd per share) | $ 251.38 |
Stock-based compensation - Comp
Stock-based compensation - Components of Stock-based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Components of stock-based compensation expense [Abstract] | |||
Total stock-based compensation expense, pretax | $ 473 | $ 401 | $ 341 |
Tax benefit from stock-based compensation expense | (102) | (86) | (74) |
Total stock-based compensation expense, net of tax | 371 | 315 | 267 |
RSUs | |||
Components of stock-based compensation expense [Abstract] | |||
Total stock-based compensation expense, pretax | 309 | 227 | 183 |
Performance units | |||
Components of stock-based compensation expense [Abstract] | |||
Total stock-based compensation expense, pretax | 121 | 132 | 121 |
Stock options | |||
Components of stock-based compensation expense [Abstract] | |||
Total stock-based compensation expense, pretax | $ 43 | $ 42 | $ 37 |
Stock-based compensation - Summ
Stock-based compensation - Summary of RSUs (Details) - RSUs - $ / shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Units | |||
Balance nonvested at beginning of period (in shares) | 2.8 | ||
Granted (in shares) | 1 | ||
Replacement awards granted - Horizon acquisition (in shares) | 1.7 | ||
Vested (in shares) | (1.3) | ||
Forfeited (in shares) | (0.3) | ||
Balance nonvested at end of period (in shares) | 3.9 | 2.8 | |
Weighted-average grant date fair value | |||
Balance nonvested at beginning of period (in usd per share) | $ 228.71 | ||
Granted (in usd per share) | 237.70 | $ 234.47 | $ 233.10 |
Replacement awards granted - Horizon acquisition (in usd per share) | 267.47 | ||
Vested (in usd per share) | 231.81 | ||
Forfeited (in usd per share) | 234.35 | ||
Balance nonvested at end of period (in usd per share) | $ 246.43 | $ 228.71 |
Stock-based compensation - Su_2
Stock-based compensation - Summary of Stock Option Assumptions (Details) - Stock options - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Closing price of our common stock on grant date (in usd per share) | $ 235.97 | $ 230.92 | $ 237.17 |
Volatility | 23.30% | 24.50% | 25.60% |
Expected life (in years) | 5 years 8 months 12 days | 5 years 8 months 12 days | 5 years 8 months 12 days |
Risk-free interest rate | 3.40% | 2.80% | 1% |
Expected dividend yield | 3.50% | 3.30% | 2.90% |
Granted (in usd per share) | $ 41.86 | $ 42.43 | $ 40.43 |
Stock-based compensation - Su_3
Stock-based compensation - Summary of Stock Options (Details) - Stock options $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) $ / shares shares | |
Options | |
Balance unexercised at beginning of period (in shares) | shares | 5.3 |
Granted (in shares) | shares | 1.1 |
Exercised (in shares) | shares | (0.4) |
Expired/forfeited (in shares) | shares | (0.1) |
Balance unexercised at end of period (in shares) | shares | 5.9 |
Vested or expected to vest (in shares) | shares | 5.7 |
Exercisable (in shares) | shares | 2.8 |
Weighted- average exercise price | |
Balance unexercised at beginning of period (in usd per share) | $ / shares | $ 207.29 |
Granted (in usd per share) | $ / shares | 235.97 |
Exercised (in usd per share) | $ / shares | 182.33 |
Expired/forfeited (in usd per share) | $ / shares | 234.10 |
Balance unexercised at end of period (in shares) | $ / shares | 213.90 |
Weighted-average exercise price, vested or expected to vest (in usd per share) | $ / shares | 213.15 |
Weighted-average exercise price, exercisable (in usd per share) | $ / shares | $ 190.59 |
Stock options information [Abstract] | |
Weighted-average remaining contractual life (years), unexercised | 6 years 8 months 12 days |
Weighted-average remaining contractual life (years), vested or expected to vest | 6 years 8 months 12 days |
Weighted-average remaining contractual life (years), exercisable | 5 years |
Aggregate intrinsic value, unexercised | $ | $ 438 |
Aggregate intrinsic value, vested or expected to vest | $ | 427 |
Aggregate intrinsic value, exercisable | $ | $ 271 |
Stock-based compensation - Weig
Stock-based compensation - Weighted-Average Assumptions (Details) - Performance units - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Weighted-average assumptions and resulting weighted-average grant date fair values [Abstract] | |||
Closing price of our common stock on grant date (in usd per share) | $ 235.97 | $ 230.92 | $ 239.64 |
Volatility | 21.60% | 28.10% | 29.30% |
Risk-free interest rate | 3.70% | 0.30% | 0.30% |
Fair value of unit (in usd per share) | $ 252.49 | $ 247.48 | $ 254.68 |
Defined contribution plan - Nar
Defined contribution plan - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |||
Expense attributed to retirement and savings Plan | $ 311 | $ 243 | $ 279 |
Income taxes - Schedule of Inco
Income taxes - Schedule of Income before Income Tax, Domestic and Foreign (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 4,047 | $ 3,026 | $ 1,850 |
Foreign | 3,808 | 4,320 | 4,851 |
Total income before income taxes | $ 7,855 | $ 7,346 | $ 6,701 |
Income taxes - Provision for In
Income taxes - Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current provision: | |||
Federal | $ 1,524 | $ 1,721 | $ 865 |
State | 43 | 44 | 18 |
Foreign | 786 | 304 | 359 |
Total current provision | 2,353 | 2,069 | 1,242 |
Deferred benefit: | |||
Federal | (1,124) | (1,185) | (308) |
State | (25) | (27) | (9) |
Foreign | (66) | (63) | (117) |
Total deferred benefit | (1,215) | (1,275) | (434) |
Total provision for income taxes | $ 1,138 | $ 794 | $ 808 |
Income taxes - Components of De
Income taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred income tax assets: | ||
NOL and credit carryforwards | $ 1,465 | $ 1,344 |
Accrued expenses | 668 | 584 |
Capitalized research and development expenses | 1,333 | 515 |
Investments | 0 | 270 |
Expenses capitalized for tax | 210 | 211 |
Earnings of foreign subsidiaries | 1,260 | 192 |
Stock-based compensation | 159 | 104 |
Other | 416 | 317 |
Total deferred income tax assets | 5,511 | 3,537 |
Valuation allowance | (957) | (718) |
Net deferred income tax assets | 4,554 | 2,819 |
Deferred income tax liabilities: | ||
Acquired intangible assets | (3,028) | (1,238) |
Debt | (268) | (272) |
Fixed assets | (140) | (112) |
Fair value of acquired inventory | (349) | (5) |
Investments | (99) | 0 |
Other | (224) | (249) |
Total deferred income tax liabilities | (4,108) | (1,876) |
Total deferred income taxes, net | $ 446 | $ 943 |
Income taxes - Narrative (Detai
Income taxes - Narrative (Details) | 12 Months Ended | |||||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 19, 2022 case | Apr. 28, 2022 USD ($) | May 31, 2021 USD ($) notice | |
Tax Credit Carryforward [Line Items] | ||||||
Interest and penalties related to unrecognized tax benefits recognized in income tax provision | $ 287,000,000 | $ 189,000,000 | $ 98,000,000 | |||
Accrued interest and penalties associated with unrecognized tax benefits | 1,400,000,000 | 1,100,000,000 | ||||
Income taxes paid | 3,400,000,000 | $ 2,400,000,000 | $ 1,900,000,000 | |||
Federal | ||||||
Tax Credit Carryforward [Line Items] | ||||||
Tax credit carryforwards available to reduce income taxes | 201,000,000 | |||||
NOL carryforwards available to reduce income taxes | 869,000,000 | |||||
NOL carryforwards, valuation allowance | 0 | |||||
NOLs with no valuation allowance and no expiration | 691,000,000 | |||||
Number of notices on proposed additional tax | notice | 2 | |||||
Proposed additional income tax | $ 3,600,000,000 | |||||
Repatriation tax on proposed additional tax | $ 900,000,000 | |||||
Proposed additional income tax 2013-2015 | $ 5,100,000,000 | |||||
Penalties on proposed additional income tax 2013-2105 | 2,000,000,000 | |||||
Repatriation tax on proposed additional tax 2013-2015 | $ 2,200,000,000 | |||||
Number of notices consolidated in court | case | 2 | |||||
Federal | Expiration in tax years between 2023 and 2043 | ||||||
Tax Credit Carryforward [Line Items] | ||||||
Tax credit carryforwards, valuation allowance | 19,000,000 | |||||
State | ||||||
Tax Credit Carryforward [Line Items] | ||||||
Tax credit carryforwards available to reduce income taxes | 1,100,000,000 | |||||
Tax credit carryforwards, valuation allowance | 971,000,000 | |||||
NOL carryforwards available to reduce income taxes | 872,000,000 | |||||
NOL carryforwards, valuation allowance | 738,000,000 | |||||
Foreign | ||||||
Tax Credit Carryforward [Line Items] | ||||||
Tax credit carryforwards available to reduce income taxes | 84,000,000 | |||||
Tax credit carryforwards, valuation allowance | 59,000,000 | |||||
NOL carryforwards available to reduce income taxes | 1,300,000,000 | |||||
NOL carryforwards, valuation allowance | 238,000,000 | |||||
NOLs with no valuation allowance and no expiration | 243,000,000 | |||||
Foreign | Operating Losses That Expire Between 2022 and 2031 | ||||||
Tax Credit Carryforward [Line Items] | ||||||
NOL carryforwards, valuation allowance | $ 0 |
Income taxes - Reconciliation o
Income taxes - Reconciliation of Total Gross Amounts of UTBs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of total gross amounts of unrecognized tax benefits (excluding interest, penalties, foreign tax credits and the federal tax benefit of state taxes related to unrecognized tax benefits) | |||
Beginning balance | $ 3,770 | $ 3,546 | $ 3,352 |
Additions based on tax positions related to the current year | 196 | 151 | 171 |
Additions based on tax positions related to prior years | 56 | 90 | 35 |
Reductions for tax positions of prior years | 0 | (14) | (4) |
Reductions for expiration of statute of limitations | (4) | (3) | 0 |
Settlements | (6) | 0 | (8) |
Ending balance | $ 4,012 | $ 3,770 | $ 3,546 |
Income taxes - Reconciliation_2
Income taxes - Reconciliation of Federal Statutory Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory tax rate | 21% | 21% | 21% |
Foreign earnings | (5.10%) | (5.60%) | (7.80%) |
Foreign-derived intangible income | (1.30%) | (1.30%) | (1.00%) |
Credits, Puerto Rico excise tax | 0.30% | (2.80%) | (3.40%) |
Interest on uncertain tax positions | 2.60% | 1.90% | 1.10% |
Credits, primarily federal R&D | (3.50%) | (2.00%) | (2.10%) |
Acquisition IPR&D | 0% | 0% | 4.90% |
Other, net | 0.50% | (0.40%) | (0.60%) |
Effective tax rate | 14.50% | 10.80% | 12.10% |
Earnings per share - Computatio
Earnings per share - Computation for Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income (Numerator): | |||
Net income for basic and diluted EPS | $ 6,717 | $ 6,552 | $ 5,893 |
Shares (Denominator): | |||
Weighted-average shares for basic EPS (in shares) | 535 | 538 | 570 |
Effect of dilutive securities (in shares) | 3 | 3 | 3 |
Weighted-average shares for diluted EPS (in shares) | 538 | 541 | 573 |
Basic EPS (in usd per share) | $ 12.56 | $ 12.18 | $ 10.34 |
Diluted EPS (in usd per share) | $ 12.49 | $ 12.11 | $ 10.28 |
Collaborations - BeiGene (Detai
Collaborations - BeiGene (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 02, 2020 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Total revenues | $ 28,190 | $ 26,323 | $ 25,979 | |
Due from related party | 7,268 | 5,563 | ||
Due from related party | 2,602 | 2,388 | ||
BeiGene | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Research and development arrangement, contract to provide cash and development services, maximum amount | $ 1,250 | |||
BeiGene | Related Party | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Due from related party | 16 | 6 | ||
Due from related party | 44 | 47 | ||
BeiGene | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Equity method investment, aggregate cost | $ 2,800 | |||
Research and development | BeiGene | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Cost recoveries | 109 | 199 | 220 | |
Selling, general and administrative | BeiGene | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Profit and loss share of expenses | 40 | 53 | 64 | |
BeiGene | BeiGene | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Total revenues | $ 125 | $ 64 | $ 72 |
Collaborations - AstraZeneca PL
Collaborations - AstraZeneca PLC (Details) - AstraZeneca PLC - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Research and development | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Development costs due to collaboration partner | $ 77 | $ 74 | $ 49 |
Selling, general and administrative | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Cost recoveries | 73 | 60 | $ 39 |
Cost of sales | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Profit and loss share of expenses | $ 310 | $ 119 |
Collaborations - UCB (Details)
Collaborations - UCB (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
UCB | Cost of sales | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Profit and loss share of expenses | $ 396 | $ 255 | $ 186 |
Collaborations - Novartis AG (D
Collaborations - Novartis AG (Details) - Novartis Pharma AG - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Research and development | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Cost recoveries | $ 42 | $ 53 | |
Selling, general and administrative | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Cost recoveries | $ 160 | ||
Cost of sales | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Royalties due | $ 116 |
Collaborations - Kyowa Kirin (D
Collaborations - Kyowa Kirin (Details) - Kyowa Kirin Co. Ltd. - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Up-front payment | $ 400 | |||
Contingent future milestone payments | $ 850 | |||
Research and development | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Cost recoveries | $ 93 | $ 0 | $ 0 |
Investments - Schedule of Avail
Investments - Schedule of Available-For-Sale Investments (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Debt securities | ||
Amortized cost | $ 10,404 | $ 4,335 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Fair values | 10,404 | 4,335 |
U.S. Treasury bills | ||
Debt securities | ||
Amortized cost | 0 | 1,676 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Fair values | 0 | 1,676 |
Money market mutual funds | ||
Debt securities | ||
Amortized cost | 10,266 | 2,659 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Fair values | 10,266 | 2,659 |
Other short-term interest-bearing securities | ||
Debt securities | ||
Amortized cost | 138 | 0 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Fair values | $ 138 | $ 0 |
Investments - Schedule of Fair
Investments - Schedule of Fair Values by Classification (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Consolidated Balance Sheets locations | ||
Marketable securities | $ 0 | $ 1,676 |
Total available-for-sale investments | 10,404 | 4,335 |
Available-for-sale investments | ||
Consolidated Balance Sheets locations | ||
Cash and cash equivalents | 10,404 | 2,659 |
Marketable securities | 0 | 1,676 |
Total available-for-sale investments | $ 10,404 | $ 4,335 |
Investments - Available-For-Sal
Investments - Available-For-Sale (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |||
Cash | $ 540 | $ 4,970 | |
Interest income | $ 1,200 | $ 127 | $ 11 |
Investments - BeiGene (Details)
Investments - BeiGene (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Jan. 02, 2020 | |
Net Investment Income [Line Items] | ||||
Unrealized gain on equity method investment | $ 98 | $ (165) | $ 161 | |
Company's share of profits (losses) of related party | (11) | $ (891) | $ (33) | |
BeiGene | ||||
Net Investment Income [Line Items] | ||||
Ownership percentage | 18.20% | 20.50% | ||
Equity method investment, difference between carrying amount and underlying equity | $ 2,400 | |||
BeiGene | ||||
Net Investment Income [Line Items] | ||||
Equity method investment, aggregate cost | 2,800 | |||
Equity method investment, quoted market value | $ 2,600 | |||
Unrealized gain on equity method investment | 1,200 | |||
Company's share of profits (losses) of related party | (394) | $ (265) | ||
Amortization of the basis difference | 190 | 172 | ||
Payments to acquire equity method investments, cash | 50 | |||
Increase in carrying value of equity method investment | 11 | 265 | ||
BeiGene | Other Noncurrent Assets | ||||
Net Investment Income [Line Items] | ||||
Approximate carrying value of the company's equity method investment | 2,200 | |||
Carrying and fair value of investment | $ 4,200 | |||
BeiGene | BeiGene | Other Noncurrent Assets | ||||
Net Investment Income [Line Items] | ||||
Carrying and fair value of investment | $ 3,400 |
Investments - Other Equity Secu
Investments - Other Equity Securities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Equity securities | $ 4,514 | $ 815 | |
Unrealized gain (loss) on equity method investment | 98 | (165) | $ 161 |
Equity securities without readily determinable fair value, gains due to upward adjustments | 152 | ||
Equity securities, gains realized on disposition | $ 41 | ||
Equity securities without readily determinable fair value, downward adjustments to carrying value | 67 | ||
Other Noncurrent Assets | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Equity securities | 494 | 480 | |
Equity securities without readily determinable fair value | $ 309 | $ 233 |
Investments - Neumora Therapeut
Investments - Neumora Therapeutics, Inc. (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Equity Method Investments [Line Items] | |||||
Unrealized gain (loss) on equity method investment | $ 98 | $ (165) | $ 161 | ||
Neumora Therapeutics, Inc. | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 25.90% | 23.20% | 24.90% | ||
Payments to acquire equity method investments, cash | $ 30 | ||||
Carrying and fair value of investment | $ 603 | $ 335 | |||
Unrealized gain (loss) on equity method investment | $ 238 | $ 105 | $ (37) | ||
Neumora Therapeutics, Inc. | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investment, aggregate cost | $ 257 | ||||
Payments to acquire equity method investments, cash | 100 | ||||
Payments to acquire equity method investments, noncash | $ 157 |
Investments - Limited Partnersh
Investments - Limited Partnership Investments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Net Investment Income [Line Items] | |||
Investment, Type [Extensible Enumeration] | Partnership Interest [Member] | Partnership Interest [Member] | |
Investments, unfunded additional commitments | $ 159 | ||
Fair Value Measured at Net Asset Value Per Share | |||
Net Investment Income [Line Items] | |||
Investments | 251 | $ 249 | |
Investment, (losses) gains recognized | $ (14) | $ (284) | $ 143 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 993 | $ 828 |
Work in process | 5,747 | 3,098 |
Finished goods | 2,778 | 1,004 |
Total inventories | $ 9,518 | $ 4,930 |
Property, plant and equipment -
Property, plant and equipment - Components of Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 15,749 | $ 14,710 | |
Less accumulated depreciation and amortization | (9,808) | (9,283) | |
Property, plant and equipment, net | 5,941 | 5,427 | |
Depreciation and amortization charges associated with property, plant and equipment | 685 | 661 | $ 644 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 339 | 292 | |
Buildings and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 4,507 | 4,201 | |
Buildings and improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life (in years) | 10 years | ||
Buildings and improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life (in years) | 40 years | ||
Manufacturing equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 3,220 | 3,105 | |
Manufacturing equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life (in years) | 8 years | ||
Manufacturing equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life (in years) | 12 years | ||
Laboratory equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 1,346 | 1,277 | |
Laboratory equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life (in years) | 8 years | ||
Laboratory equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life (in years) | 12 years | ||
Fixed equipment | |||
Property, Plant and Equipment [Line Items] | |||
Useful life (in years) | 12 years | ||
Property, plant and equipment, gross | $ 2,526 | 2,478 | |
Capitalized software | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 1,320 | 1,215 | |
Capitalized software | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life (in years) | 3 years | ||
Capitalized software | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life (in years) | 5 years | ||
Other | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 941 | 929 | |
Other | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life (in years) | 5 years | ||
Other | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life (in years) | 10 years | ||
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 1,550 | $ 1,213 |
Property, plant and equipment_2
Property, plant and equipment - Property, Plant and Equipment by Geographic Area (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, net | $ 5,941 | $ 5,427 |
U.S. | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, net | 3,658 | 3,154 |
Puerto Rico | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, net | 1,148 | 1,247 |
ROW | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, net | $ 1,135 | $ 1,026 |
Goodwill and other intangible_2
Goodwill and other intangible assets - Schedule of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 15,529 | $ 14,890 |
Goodwill, adjustment | 3,089 | 651 |
Currency translation adjustments | 11 | (12) |
Ending balance | $ 18,629 | $ 15,529 |
Goodwill and other intangible_3
Goodwill and other intangible assets - Schedule of Identifiable Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-lived intangible assets: | ||
Gross carrying amounts | $ 55,229 | $ 35,596 |
Accumulated amortization | (23,806) | (20,525) |
Other intangible assets, net | 31,423 | 15,071 |
Indefinite-lived intangible assets: | ||
Identifiable intangible assets | 56,447 | 36,605 |
Accumulated amortization | (23,806) | (20,525) |
Identifiable intangible assets, net | 32,641 | 16,080 |
IPR&D | ||
Indefinite-lived intangible assets: | ||
Indefinite-lived intangible assets | 1,218 | 1,009 |
Developed-product-technology rights | ||
Finite-lived intangible assets: | ||
Gross carrying amounts | 48,631 | 29,028 |
Accumulated amortization | (18,049) | (15,045) |
Other intangible assets, net | 30,582 | 13,983 |
Licensing rights | ||
Finite-lived intangible assets: | ||
Gross carrying amounts | 3,865 | 3,864 |
Accumulated amortization | (3,265) | (3,123) |
Other intangible assets, net | 600 | 741 |
Marketing-related rights | ||
Finite-lived intangible assets: | ||
Gross carrying amounts | 1,339 | 1,326 |
Accumulated amortization | (1,264) | (1,167) |
Other intangible assets, net | 75 | 159 |
R&D technology rights | ||
Finite-lived intangible assets: | ||
Gross carrying amounts | 1,394 | 1,378 |
Accumulated amortization | (1,228) | (1,190) |
Other intangible assets, net | $ 166 | $ 188 |
Goodwill and other intangible_4
Goodwill and other intangible assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Indefinite-Lived Intangible Assets [Line Items] | ||||
Impairment, Intangible Asset, Indefinite-Lived (Excluding Goodwill), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other General Expense | |||
Amortization charges associated with finite-lived intangible assets | $ 3,200 | $ 2,600 | $ 2,600 | |
Total estimated amortization of finite-lived intangible assets for 2024 | 4,800 | |||
Total estimated amortization of finite-lived intangible assets for 2025 | 4,500 | |||
Total estimated amortization of finite-lived intangible assets for 2026 | 3,900 | |||
Total estimated amortization of finite-lived intangible assets for 2027 | 3,900 | |||
Total estimated amortization of finite-lived intangible assets for 2028 | $ 2,900 | |||
IPR&D | ||||
Indefinite-Lived Intangible Assets [Line Items] | ||||
IPR&D impairment charge | $ 783 |
Leases - Narrative (Details)
Leases - Narrative (Details) | Dec. 31, 2023 |
Leases [Abstract] | |
Renewal term | 7 years |
Leases - Summary of Operating L
Leases - Summary of Operating Leases (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Assets: | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets, Noncurrent | Other Assets, Noncurrent |
Other assets | $ 651 | $ 579 |
Liabilities: | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued Liabilities, Current | Accrued Liabilities, Current |
Accrued liabilities | $ 119 | $ 156 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent |
Other noncurrent liabilities | $ 691 | $ 539 |
Total lease liabilities | $ 810 | $ 695 |
Leases - Components of Lease Co
Leases - Components of Lease Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Operating | $ 208 | $ 218 | $ 237 |
Sublease income | (28) | (32) | (38) |
Total net lease costs | $ 180 | $ 186 | $ 199 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Lessee, Lease, Description [Line Items] | ||
2024 | $ 138 | |
2025 | 121 | |
2026 | 109 | |
2027 | 95 | |
2028 | 74 | |
Thereafter | 440 | |
Total lease payments | 977 | |
Less imputed interest | (167) | |
Present value of lease liabilities | 810 | $ 695 |
Abandoned Leases | ||
Lessee, Lease, Description [Line Items] | ||
Future rental commitments for abandoned leases | 67 | |
Expected total future rental income to be received | $ 70 |
Leases - Weighted Average Remai
Leases - Weighted Average Remaining Lease Terms & Discount Rates (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Weighted-average remaining lease term (in years) | 9 years 8 months 12 days | 8 years 2 months 12 days |
Weighted-average discount rate | 3.60% | 2.70% |
Leases - Cash and Noncash Infor
Leases - Cash and Noncash Information of Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Cash paid for amounts included in the measurement of lease liabilities | $ 182 | $ 171 | $ 190 |
ROU assets obtained in exchange for lease obligations | $ 245 | $ 191 | $ 340 |
Other current assets and accr_3
Other current assets and accrued liabilities - Schedule of Other Current Assets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Prepaid expenses | $ 1,647 | $ 1,204 |
Corporate partner receivables | 502 | 700 |
Tax receivables | 172 | 129 |
Other | 281 | 355 |
Total other current assets | $ 2,602 | $ 2,388 |
Other current assets and accr_4
Other current assets and accrued liabilities - Schedule of Accrued Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Sales deductions | $ 7,271 | $ 5,986 |
Income taxes payable | 1,664 | 1,195 |
Employee compensation and benefits | 1,381 | 1,099 |
Dividends payable | 1,205 | 1,137 |
Accrued interest payable | 936 | 470 |
Other | 2,902 | 2,637 |
Total accrued liabilities | $ 15,359 | $ 12,524 |
Financing arrangements - Princi
Financing arrangements - Principal Amounts and Carrying Value of Long-term Borrowings (Details) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 EUR (€) | Dec. 31, 2023 GBP (£) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 CHF (SFr) | Dec. 31, 2021 USD ($) |
Debt Instrument [Line Items] | |||||||
Unamortized bond discounts, premiums and issuance costs, net | $ (1,420,000,000) | $ (1,246,000,000) | |||||
Fair value adjustments | (314,000,000) | (437,000,000) | |||||
Other | 17,000,000 | 12,000,000 | |||||
Total carrying value of debt | 64,613,000,000 | 38,945,000,000 | |||||
Less current portion | (1,443,000,000) | (1,591,000,000) | |||||
Total long-term debt | $ 63,170,000,000 | 37,354,000,000 | |||||
Notes | |||||||
Debt Instrument [Line Items] | |||||||
Face amount | $ 24,000,000,000 | $ 7,000,000,000 | $ 5,000,000,000 | ||||
0.41% CHF700 million bonds due 2023 (0.41% 2023 Swiss franc Bonds) | Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, stated percentage | 0.41% | 0.41% | 0.41% | 0.41% | 0.41% | 0.41% | |
Face amount | SFr | SFr 700,000,000 | ||||||
Long-term debt, gross | $ 757,000,000 | ||||||
2.25% notes due 2023 (2.25% 2023 Notes) | Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, stated percentage | 2.25% | 2.25% | |||||
Face amount | $ 750,000,000 | ||||||
Long-term debt, gross | $ 750,000,000 | ||||||
3.625% notes due 2024 (3.625% 2024 Notes) | Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, stated percentage | 3.625% | 3.625% | 3.625% | ||||
Long-term debt, gross | $ 1,400,000,000 | 1,400,000,000 | |||||
1.90% notes due 2025 (1.90% 2025 Notes) | Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, stated percentage | 1.90% | 1.90% | 1.90% | ||||
Long-term debt, gross | $ 500,000,000 | 500,000,000 | |||||
5.25% 2025 Notes | Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, stated percentage | 5.25% | 5.25% | 5.25% | ||||
Face amount | $ 2,000,000,000 | ||||||
5.25% notes due 2025 (5.25% 2025 Notes) | Notes | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt, gross | $ 2,000,000,000 | ||||||
Term loan due April 2025 | Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt, gross | $ 2,000,000,000 | ||||||
3.125% notes due 2025 (3.125% 2025 Notes) | Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, stated percentage | 3.125% | 3.125% | 3.125% | ||||
Long-term debt, gross | $ 1,000,000,000 | 1,000,000,000 | |||||
2.00% €750 million notes due 2026 (2.00% 2026 euro Notes) | Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, stated percentage | 2% | 2% | 2% | ||||
Face amount | € | € 750,000,000 | ||||||
Long-term debt, gross | $ 828,000,000 | 803,000,000 | |||||
5.507% notes due 2026 (5.507% 2026 Notes) | Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, stated percentage | 5.507% | 5.507% | 5.507% | ||||
Face amount | 1,500,000,000 | ||||||
Long-term debt, gross | $ 1,500,000,000 | ||||||
2.60% notes due 2026 (2.60% 2026 Notes) | Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, stated percentage | 2.60% | 2.60% | 2.60% | ||||
Long-term debt, gross | $ 1,250,000,000 | 1,250,000,000 | |||||
Term loan due October 2026 | Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt, gross | $ 2,000,000,000 | ||||||
5.50% £475 million notes due 2026 (5.50% 2026 pound sterling Notes) | Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, stated percentage | 5.50% | 5.50% | 5.50% | ||||
Face amount | £ | £ 475,000,000 | ||||||
Long-term debt, gross | $ 605,000,000 | $ 574,000,000 | |||||
2.20% notes due 2027 (2.20% 2027 Notes) | Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, stated percentage | 2.20% | 2.20% | 2.20% | 2.20% | 2.20% | ||
Long-term debt, gross | $ 1,724,000,000 | $ 1,724,000,000 | |||||
3.20% notes due 2027 (3.20% 2027 Notes) | Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, stated percentage | 3.20% | 3.20% | 3.20% | ||||
Long-term debt, gross | $ 1,000,000,000 | $ 1,000,000,000 | |||||
5.15% notes due 2028 (5.15% 2028 Notes) | Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, stated percentage | 5.15% | 5.15% | 5.15% | ||||
Face amount | 3,750,000,000 | ||||||
Long-term debt, gross | $ 3,750,000,000 | ||||||
1.65% notes due in 2028 (1.65% 2028 Notes) | Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, stated percentage | 1.65% | 1.65% | 1.65% | 1.65% | 1.65% | 1.65% | |
Face amount | $ 1,250,000,000 | ||||||
Long-term debt, gross | $ 1,234,000,000 | $ 1,234,000,000 | |||||
3.00% notes due 2029 (3.00% 2029 Notes) | Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, stated percentage | 3% | 3% | 3% | 3% | 3% | ||
Face amount | $ 750,000,000 | ||||||
Long-term debt, gross | $ 750,000,000 | $ 750,000,000 | |||||
4.05% notes due 2029 (4.05% 2029 Notes) | Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, stated percentage | 4.05% | 4.05% | 4.05% | 4.05% | 4.05% | ||
Face amount | $ 1,250,000,000 | ||||||
Long-term debt, gross | $ 1,250,000,000 | 1,250,000,000 | |||||
4.00% £700 million notes due 2029 (4.00% 2029 pound sterling Notes) | Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, stated percentage | 4% | 4% | 4% | ||||
Face amount | £ | £ 700,000,000 | ||||||
Long-term debt, gross | $ 892,000,000 | 846,000,000 | |||||
2.45% notes due 2030 (2.45% 2030 Notes) | Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, stated percentage | 2.45% | 2.45% | 2.45% | 2.45% | |||
Long-term debt, gross | $ 1,250,000,000 | 1,250,000,000 | |||||
5.25% notes due 2030 (5.25% 2030 Notes) | Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, stated percentage | 5.25% | 5.25% | 5.25% | ||||
Face amount | 2,750,000,000 | ||||||
Long-term debt, gross | $ 2,750,000,000 | ||||||
2.30% notes due 2031 (2.30% 2031 Notes) | Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, stated percentage | 2.30% | 2.30% | 2.30% | 2.30% | |||
Long-term debt, gross | $ 1,250,000,000 | $ 1,250,000,000 | |||||
2.00% notes due 2032 (2.00% 2032 Notes) | Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, stated percentage | 2% | 2% | 2% | 2% | 2% | ||
Long-term debt, gross | $ 1,001,000,000 | $ 1,051,000,000 | |||||
3.35% notes due 2032 (3.35% 2032 Notes) | Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, stated percentage | 3.35% | 3.35% | 3.35% | 3.35% | 3.35% | ||
Face amount | $ 1,000,000,000 | ||||||
Long-term debt, gross | $ 1,000,000,000 | $ 1,000,000,000 | |||||
4.20% notes due 2033 (4.20% 2033 Notes) | Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, stated percentage | 4.20% | 4.20% | 4.20% | 4.20% | 4.20% | ||
Face amount | $ 750,000,000 | ||||||
Long-term debt, gross | $ 750,000,000 | 750,000,000 | |||||
5.25% notes due 2033 (5.25% 2033 Notes) | Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, stated percentage | 5.25% | 5.25% | 5.25% | ||||
Face amount | 4,250,000,000 | ||||||
Long-term debt, gross | $ 4,250,000,000 | ||||||
6.375% notes due 2037 (6.375% 2037 Notes) | Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, stated percentage | 6.375% | 6.375% | 6.375% | ||||
Long-term debt, gross | $ 478,000,000 | 478,000,000 | |||||
6.90% notes due 2038 (6.90% 2038 Notes) | Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, stated percentage | 6.90% | 6.90% | 6.90% | ||||
Long-term debt, gross | $ 254,000,000 | 254,000,000 | |||||
6.40% notes due 2039 (6.40% 2039 Notes) | Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, stated percentage | 6.40% | 6.40% | 6.40% | ||||
Long-term debt, gross | $ 333,000,000 | 333,000,000 | |||||
3.15% notes due 2040 (3.15% 2040 Notes) | Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, stated percentage | 3.15% | 3.15% | 3.15% | ||||
Long-term debt, gross | $ 1,803,000,000 | 2,000,000,000 | |||||
5.75% notes due 2040 (5.75% 2040 Notes) | Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, stated percentage | 5.75% | 5.75% | 5.75% | ||||
Long-term debt, gross | $ 373,000,000 | $ 373,000,000 | |||||
2.80% notes due 2041 (2.80% 2041 Notes) | Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, stated percentage | 2.80% | 2.80% | 2.80% | 2.80% | 2.80% | ||
Long-term debt, gross | $ 949,000,000 | $ 1,110,000,000 | |||||
Four Point Nine Five Percent Notes Due 2041 [Member] | Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, stated percentage | 4.95% | 4.95% | 4.95% | ||||
Long-term debt, gross | $ 600,000,000 | 600,000,000 | |||||
5.15% notes due 2041 (5.15% 2041 Notes) | Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, stated percentage | 5.15% | 5.15% | 5.15% | ||||
Long-term debt, gross | $ 729,000,000 | 729,000,000 | |||||
5.65% notes due 2042 (5.65% 2042 Notes) | Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, stated percentage | 5.65% | 5.65% | 5.65% | ||||
Long-term debt, gross | $ 415,000,000 | 415,000,000 | |||||
5.60% notes due 2043 (5.60% 2043 Notes) | Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, stated percentage | 5.60% | 5.60% | 5.60% | ||||
Face amount | 2,750,000,000 | ||||||
Long-term debt, gross | $ 2,750,000,000 | 0 | |||||
5.375% notes due 2043 (5.375% 2043 Notes) | Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, stated percentage | 5.375% | 5.375% | 5.375% | ||||
Long-term debt, gross | $ 185,000,000 | 185,000,000 | |||||
4.40% notes due 2045 (4.40% 2045 Notes) | Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, stated percentage | 4.40% | 4.40% | 4.40% | ||||
Long-term debt, gross | $ 2,250,000,000 | 2,250,000,000 | |||||
4.563% notes due 2048 (4.563% 2048 Notes) | Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, stated percentage | 4.563% | 4.563% | 4.563% | ||||
Long-term debt, gross | $ 1,415,000,000 | 1,415,000,000 | |||||
3.375% notes due 2050 (3.375% 2050 Notes) | Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, stated percentage | 3.375% | 3.375% | 3.375% | ||||
Long-term debt, gross | $ 2,132,000,000 | 2,250,000,000 | |||||
4.663% notes due 2051 (4.663% 2051 Notes) | Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, stated percentage | 4.663% | 4.663% | 4.663% | ||||
Long-term debt, gross | $ 3,541,000,000 | $ 3,541,000,000 | |||||
3.00% notes due 2052 (3.00% 2052 Notes) | Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, stated percentage | 3% | 3% | 3% | 3% | 3% | 3% | |
Face amount | $ 1,350,000,000 | ||||||
Long-term debt, gross | $ 999,000,000 | $ 1,254,000,000 | |||||
4.20% notes due 2052 (4.20% 2052 Notes) | Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, stated percentage | 4.20% | 4.20% | 4.20% | 4.20% | 4.20% | ||
Face amount | $ 1,000,000,000 | ||||||
Long-term debt, gross | $ 950,000,000 | $ 1,000,000,000 | |||||
4.875% notes due 2053 (4.875% 2053 Notes) | Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, stated percentage | 4.875% | 4.875% | 4.875% | 4.875% | 4.875% | ||
Face amount | $ 1,000,000,000 | ||||||
Long-term debt, gross | $ 1,000,000,000 | 1,000,000,000 | |||||
5.65% notes due 2053 (5.65% 2053 Notes) | Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, stated percentage | 5.65% | 5.65% | 5.65% | ||||
Face amount | 4,250,000,000 | ||||||
Long-term debt, gross | $ 4,250,000,000 | 0 | |||||
2.77% notes due 2053 (2.77% 2053 Notes) | Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, stated percentage | 2.77% | 2.77% | 2.77% | ||||
Long-term debt, gross | $ 940,000,000 | $ 940,000,000 | |||||
4.40% notes due 2062 (4.40% 2062 Notes) | Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, stated percentage | 4.40% | 4.40% | 4.40% | 4.40% | 4.40% | ||
Face amount | $ 1,250,000,000 | ||||||
Long-term debt, gross | $ 1,200,000,000 | 1,250,000,000 | |||||
5.75% notes due 2063 (5.75% 2063 Notes) | Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, stated percentage | 5.75% | 5.75% | 5.75% | ||||
Face amount | $ 2,750,000,000 | ||||||
Long-term debt, gross | $ 2,750,000,000 | 0 | |||||
Other notes due 2097 | Notes | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt, gross | $ 100,000,000 | $ 100,000,000 |
Financing arrangements - Miscel
Financing arrangements - Miscellaneous (Details) | 12 Months Ended | |||
Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt securities payable | Minimum | ||||
Debt Instrument [Line Items] | ||||
Redemption period without payment of make whole amount | 1 month | |||
Debt securities payable | Maximum | ||||
Debt Instrument [Line Items] | ||||
Redemption period without payment of make whole amount | 6 months | |||
4.563% notes due 2048 (4.563% 2048 Notes) | Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 4.563% | |||
Effective interest rate on note | 6.30% | |||
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event | 101% | |||
4.663% notes due 2051 (4.663% 2051 Notes) | Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 4.663% | |||
Effective interest rate on note | 5.60% | |||
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event | 101% | |||
2.77% notes due 2053 (2.77% 2053 Notes) | Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 2.77% | |||
Effective interest rate on note | 5.20% | |||
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event | 101% | |||
3.15% notes due 2040 (3.15% 2040 Notes) | Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 3.15% | |||
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event | 101% | |||
6.40% notes due 2039 (6.40% 2039 Notes) | Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 6.40% | |||
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event | 101% | |||
2.00% €750 million notes due 2026 (2.00% 2026 euro Notes) | Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 2% | |||
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event | 101% | |||
4.40% notes due 2045 (4.40% 2045 Notes) | Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 4.40% | |||
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event | 101% | |||
3.625% notes due 2024 (3.625% 2024 Notes) | Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 3.625% | |||
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event | 101% | |||
Four Point Nine Five Percent Notes Due 2041 [Member] | Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 4.95% | |||
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event | 101% | |||
3.35% notes due 2032 (3.35% 2032 Notes) | Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 3.35% | 3.35% | ||
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event | 101% | |||
3.00% notes due 2052 (3.00% 2052 Notes) | Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 3% | 3% | 3% | |
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event | 101% | |||
2.00% notes due 2032 (2.00% 2032 Notes) | Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 2% | |||
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event | 101% | |||
3.00% notes due 2029 (3.00% 2029 Notes) | Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 3% | 3% | ||
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event | 101% | |||
4.00% £700 million notes due 2029 (4.00% 2029 pound sterling Notes) | Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 4% | |||
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event | 101% | |||
3.375% notes due 2050 (3.375% 2050 Notes) | Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 3.375% | |||
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event | 101% | |||
2.80% notes due 2041 (2.80% 2041 Notes) | Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 2.80% | |||
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event | 101% | |||
5.375% notes due 2043 (5.375% 2043 Notes) | Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 5.375% | |||
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event | 101% | |||
4.40% notes due 2062 (4.40% 2062 Notes) | Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 4.40% | 4.40% | ||
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event | 101% | |||
5.15% notes due 2041 (5.15% 2041 Notes) | Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 5.15% | |||
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event | 101% | |||
4.875% notes due 2053 (4.875% 2053 Notes) | Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 4.875% | 4.875% | ||
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event | 101% | |||
3.125% notes due 2025 (3.125% 2025 Notes) | Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 3.125% | |||
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event | 101% | |||
5.75% notes due 2040 (5.75% 2040 Notes) | Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 5.75% | |||
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event | 101% | |||
2.30% notes due 2031 (2.30% 2031 Notes) | Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 2.30% | 2.30% | ||
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event | 101% | |||
5.50% £475 million notes due 2026 (5.50% 2026 pound sterling Notes) | Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 5.50% | |||
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event | 101% | |||
2.25% notes due 2023 (2.25% 2023 Notes) | Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 2.25% | |||
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event | 101% | |||
6.375% notes due 2037 (6.375% 2037 Notes) | Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 6.375% | |||
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event | 101% | |||
2.60% notes due 2026 (2.60% 2026 Notes) | Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 2.60% | |||
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event | 101% | |||
1.65% notes due in 2028 (1.65% 2028 Notes) | Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 1.65% | 1.65% | 1.65% | |
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event | 101% | |||
1.90% notes due 2025 (1.90% 2025 Notes) | Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 1.90% | |||
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event | 101% | |||
3.20% notes due 2027 (3.20% 2027 Notes) | Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 3.20% | |||
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event | 101% | |||
5.65% notes due 2042 (5.65% 2042 Notes) | Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 5.65% | |||
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event | 101% | |||
2.20% notes due 2027 (2.20% 2027 Notes) | Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 2.20% | 2.20% | ||
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event | 101% | |||
2.45% notes due 2030 (2.45% 2030 Notes) | Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 2.45% | 2.45% | ||
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event | 101% | |||
4.05% notes due 2029 (4.05% 2029 Notes) | Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 4.05% | 4.05% | ||
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event | 101% | |||
6.90% notes due 2038 (6.90% 2038 Notes) | Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 6.90% | |||
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event | 101% | |||
4.20% notes due 2052 (4.20% 2052 Notes) | Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 4.20% | 4.20% | ||
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event | 101% | |||
0.41% CHF700 million bonds due 2023 (0.41% 2023 Swiss franc Bonds) | Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 0.41% | 0.41% | 0.41% | |
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event | 101% | |||
4.20% notes due 2033 (4.20% 2033 Notes) | Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 4.20% | 4.20% | ||
Percentage of principal amount of notes that may be paid upon occurrence of change in control triggering event | 101% | |||
5.507% Notes Due 2026 | Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 5.507% | |||
5.507% Notes Due 2026 | Debt securities payable | ||||
Debt Instrument [Line Items] | ||||
Redemption period without payment of make whole amount | 2 years |
Financing arrangements - Debt I
Financing arrangements - Debt Issuances (Details) - Notes - USD ($) $ in Millions | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||||
Face amount | $ 24,000 | $ 7,000 | $ 5,000 | |
5.25% 2025 Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 5.25% | |||
Face amount | 2,000 | |||
5.507% notes due 2026 (5.507% 2026 Notes) | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 5.507% | |||
Face amount | 1,500 | |||
5.15% notes due 2028 (5.15% 2028 Notes) | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 5.15% | |||
Face amount | 3,750 | |||
5.25% notes due 2030 (5.25% 2030 Notes) | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 5.25% | |||
Face amount | 2,750 | |||
5.25% notes due 2033 (5.25% 2033 Notes) | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 5.25% | |||
Face amount | 4,250 | |||
5.60% notes due 2043 (5.60% 2043 Notes) | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 5.60% | |||
Face amount | 2,750 | |||
5.65% notes due 2053 (5.65% 2053 Notes) | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 5.65% | |||
Face amount | 4,250 | |||
5.75% notes due 2063 (5.75% 2063 Notes) | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 5.75% | |||
Face amount | $ 2,750 |
Financing arrangements - Debt_2
Financing arrangements - Debt Issuances and Acquisition-Related Financing (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||||
Oct. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2023 | Oct. 06, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Notes | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | $ 24,000,000,000 | $ 7,000,000,000 | $ 5,000,000,000 | |||
Notes | 3.00% notes due 2029 (3.00% 2029 Notes) | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | $ 750,000,000 | |||||
Interest rate, stated percentage | 3% | 3% | ||||
Notes | 4.05% notes due 2029 (4.05% 2029 Notes) | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | $ 1,250,000,000 | |||||
Interest rate, stated percentage | 4.05% | 4.05% | ||||
Notes | 3.35% notes due 2032 (3.35% 2032 Notes) | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | $ 1,000,000,000 | |||||
Interest rate, stated percentage | 3.35% | 3.35% | ||||
Notes | 4.20% notes due 2033 (4.20% 2033 Notes) | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | $ 750,000,000 | |||||
Interest rate, stated percentage | 4.20% | 4.20% | ||||
Notes | 4.20% notes due 2052 (4.20% 2052 Notes) | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | $ 1,000,000,000 | |||||
Interest rate, stated percentage | 4.20% | 4.20% | ||||
Notes | 4.875% notes due 2053 (4.875% 2053 Notes) | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | $ 1,000,000,000 | |||||
Interest rate, stated percentage | 4.875% | 4.875% | ||||
Notes | 4.40% notes due 2062 (4.40% 2062 Notes) | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | $ 1,250,000,000 | |||||
Interest rate, stated percentage | 4.40% | 4.40% | ||||
Notes | 1.65% notes due in 2028 (1.65% 2028 Notes) | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | $ 1,250,000,000 | |||||
Interest rate, stated percentage | 1.65% | 1.65% | 1.65% | |||
Notes | 2.00% notes due 2032 (2.00% 2032 Notes) | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | $ 1,250,000,000 | |||||
Interest rate, stated percentage | 2% | |||||
Notes | 2.80% notes due 2041 (2.80% 2041 Notes) | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | $ 1,150,000,000 | |||||
Interest rate, stated percentage | 2.80% | |||||
Notes | 3.00% notes due 2052 (3.00% 2052 Notes) | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | $ 1,350,000,000 | |||||
Interest rate, stated percentage | 3% | 3% | 3% | |||
Variable Rate Component Three | term loan credit agreement | Secured Overnight Financing Rate (SOFR) | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.225% | |||||
Horizon Therapeutics | ||||||
Debt Instrument [Line Items] | ||||||
Bridge credit reduced amount | $ 24,500,000,000 | |||||
Term loan credit agreement, total amount | 4,000,000,000 | |||||
Term loan credit agreement, total borrowed | $ 4,000,000,000 | |||||
Term loan credit agreement, due in April 2025 | 2,000,000,000 | |||||
Term loan credit agreement, due in October 2026 | $ 2,000,000,000 | |||||
Term loan, outstanding | $ 0 | |||||
Horizon Therapeutics | Other Nonoperating Income (Expense) | ||||||
Debt Instrument [Line Items] | ||||||
Amortization of other deferred charges | $ 98,000,000 |
Financing arrangements - Debt E
Financing arrangements - Debt Extinguishment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||
Extinguishment of debt, amount | $ 647 | $ 297 | |
Gain (loss) on extinguishment of debt | $ 225 | $ 78 | |
2.00% notes due 2032 (2.00% 2032 Notes) | Notes | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 2% | 2% | |
3.15% notes due 2040 (3.15% 2040 Notes) | Notes | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 3.15% | ||
2.80% notes due 2041 (2.80% 2041 Notes) | Notes | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 2.80% | 2.80% | |
3.375% notes due 2050 (3.375% 2050 Notes) | Notes | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 3.375% | ||
3.00% notes due 2052 (3.00% 2052 Notes) | Notes | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 3% | 3% | 3% |
4.20% 2052 Notes | Notes | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 4.20% | ||
4.40% 2062 Notes | Notes | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 4.40% | ||
2.20% notes due 2027 (2.20% 2027 Notes) | Notes | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 2.20% | 2.20% | |
1.65% notes due in 2028 (1.65% 2028 Notes) | Notes | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 1.65% | 1.65% | 1.65% |
Financing arrangements - Debt R
Financing arrangements - Debt Repayments and Redemptions (Details) € in Millions | 12 Months Ended | |||||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 EUR (€) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 CHF (SFr) | |
Debt Instrument [Line Items] | ||||||
Repayments of debt | $ 1,454,000,000 | $ 0 | $ 4,150,000,000 | |||
Interest expense, net | 2,875,000,000 | 1,406,000,000 | 1,197,000,000 | |||
Notes | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | 7,000,000,000 | 5,000,000,000 | $ 24,000,000,000 | |||
Repayments of debt | $ 0 | 4,200,000,000 | ||||
Interest expense, net | $ 24,000,000 | |||||
2.25% notes due 2023 (2.25% 2023 Notes) | Notes | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | 750,000,000 | |||||
Interest rate, stated percentage | 2.25% | 2.25% | ||||
0.41% CHF700 million bonds due 2023 (0.41% 2023 Swiss franc Bonds) | Cross-currency swap contract gains (losses) | Cash flow hedge | ||||||
Debt Instrument [Line Items] | ||||||
Notional amount | $ 704,000,000 | |||||
0.41% CHF700 million bonds due 2023 (0.41% 2023 Swiss franc Bonds) | Notes | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | SFr | SFr 700,000,000 | |||||
Interest rate, stated percentage | 0.41% | 0.41% | 0.41% | 0.41% | ||
1.25% notes due 2022 (1.25% 2022 Notes) | Notes | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, stated percentage | 1.25% | |||||
Repayments of debt | $ 1,400,000,000 | € 1,250 | ||||
2.70% notes due 2022 (2.70% 2022 Notes) | Notes | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, stated percentage | 2.70% | |||||
Repayments of debt | $ 500,000,000 | |||||
2.65% notes due 2022 (2.65% 2022 Notes) | Notes | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, stated percentage | 2.65% | |||||
Repayments of debt | $ 1,500,000,000 | |||||
3.625% Notes Due 2022 | Notes | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, stated percentage | 3.625% | |||||
Repayments of debt | $ 750,000,000 |
Financing arrangements - Intere
Financing arrangements - Interest Rate Swaps (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Interest rate swap contracts | Designated as Hedging Instrument | |||
Debt Instrument [Line Items] | |||
Notional amount | $ 6,700 | $ 6,700 | |
Derivative, amount terminated | $ 750 | ||
2.45% notes due 2030 (2.45% 2030 Notes) | Notes | |||
Debt Instrument [Line Items] | |||
Notional amount | $ 1,000 | ||
Interest rate, stated percentage | 2.45% | 2.45% | |
2.30% notes due 2031 (2.30% 2031 Notes) | Notes | |||
Debt Instrument [Line Items] | |||
Notional amount | $ 500 | ||
Interest rate, stated percentage | 2.30% | 2.30% | |
3.625% Notes Due 2022 | Notes | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 3.625% |
Financing arrangements - Inte_2
Financing arrangements - Interest Rate and Cross-Currency Swaps (Details) - Notes payable - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Notional amount | $ 6,650 | $ 6,650 |
3.625% notes due 2024 (3.625% 2024 Notes) | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 3.625% | |
Notional amount | $ 1,400 | $ 1,400 |
3.625% notes due 2024 (3.625% 2024 Notes) | Secured Overnight Financing Rate (SOFR) | ||
Debt Instrument [Line Items] | ||
Derivative, effective interest rate | 3.40% | 3.40% |
3.125% notes due 2025 (3.125% 2025 Notes) | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 3.125% | |
Notional amount | $ 1,000 | $ 1,000 |
3.125% notes due 2025 (3.125% 2025 Notes) | Secured Overnight Financing Rate (SOFR) | ||
Debt Instrument [Line Items] | ||
Derivative, effective interest rate | 2.10% | 2.10% |
2.60% notes due 2026 (2.60% 2026 Notes) | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 2.60% | |
Notional amount | $ 1,250 | $ 1,250 |
2.60% notes due 2026 (2.60% 2026 Notes) | Secured Overnight Financing Rate (SOFR) | ||
Debt Instrument [Line Items] | ||
Derivative, effective interest rate | 2.10% | 2.10% |
2.45% notes due 2030 (2.45% 2030 Notes) | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 2.45% | |
Notional amount | $ 1,000 | $ 1,000 |
2.45% notes due 2030 (2.45% 2030 Notes) | Secured Overnight Financing Rate (SOFR) | ||
Debt Instrument [Line Items] | ||
Derivative, effective interest rate | 1.30% | 1.30% |
2.30% notes due 2031 (2.30% 2031 Notes) | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 2.30% | |
Notional amount | $ 500 | $ 500 |
2.30% notes due 2031 (2.30% 2031 Notes) | Secured Overnight Financing Rate (SOFR) | ||
Debt Instrument [Line Items] | ||
Derivative, effective interest rate | 1.10% | 1.10% |
4.663% notes due 2051 (4.663% 2051 Notes) | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 4.663% | |
Notional amount | $ 1,500 | $ 1,500 |
4.663% notes due 2051 (4.663% 2051 Notes) | Secured Overnight Financing Rate (SOFR) | ||
Debt Instrument [Line Items] | ||
Derivative, effective interest rate | 4.30% | 4.30% |
Financing arrangements - Contra
Financing arrangements - Contractual Maturities of Long-term Debt (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Maturities of Long-term Debt [Abstract] | |
2024 | $ 1,403 |
2025 | 5,500 |
2026 | 6,183 |
2027 | 2,724 |
2028 | 4,984 |
Thereafter | 45,553 |
Total | $ 66,347 |
Financing arrangements - Cross-
Financing arrangements - Cross-Currency Swaps (Details) | Dec. 31, 2023 |
2.00% €750 million notes due 2026 (2.00% 2026 euro Notes) | Notes payable | |
Debt Instrument [Line Items] | |
Interest rate, stated percentage | 2% |
2.00% €750 million notes due 2026 (2.00% 2026 euro Notes) | Notes | |
Debt Instrument [Line Items] | |
Interest rate, stated percentage | 2% |
5.50% £475 million notes due 2026 (5.50% 2026 pound sterling Notes) | Notes | |
Debt Instrument [Line Items] | |
Interest rate, stated percentage | 5.50% |
4.00% £700 million notes due 2029 (4.00% 2029 pound sterling Notes) | Notes | |
Debt Instrument [Line Items] | |
Interest rate, stated percentage | 4% |
Financing arrangements - Shelf
Financing arrangements - Shelf Registration Statement and Other Facilities (Details) | 3 Months Ended | ||
Mar. 31, 2023 USD ($) renewal_options | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Debt Instrument [Line Items] | |||
Commercial paper, maximum borrowing capacity | $ 2,500,000,000 | ||
Commercial paper | 0 | $ 0 | |
Annual commitment fees for syndicated, unsecured, revolving credit agreement | 0.09% | ||
Line of credit | |||
Debt Instrument [Line Items] | |||
Maximum current borrowing capacity under a syndicated, unsecured, revolving credit agreement | $ 4,000,000,000 | ||
Amount by which borrowing capacity under a syndicated unsecured revolving credit agreement may be increased upon our request at discretion of banks | $ 1,250,000,000 | ||
Initial commitment term of each bank which is a party to the agreement | 5 years | ||
Number of additional term extension options | renewal_options | 2 | ||
Additional period for extension of commitment term | 1 year | ||
Amount outstanding under syndicated, unsecured, revolving credit facility | $ 0 | 0 | |
Line of credit | Federal Funds Purchased | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.50% | ||
Line of credit | Variable Rate Component One | Secured Overnight Financing Rate (SOFR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.01% | ||
Line of credit | Variable Rate Component Two | Secured Overnight Financing Rate (SOFR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.10% | ||
prior line of credit | |||
Debt Instrument [Line Items] | |||
Maximum current borrowing capacity under a syndicated, unsecured, revolving credit agreement | $ 2,500,000,000 | ||
Amount by which borrowing capacity under a syndicated unsecured revolving credit agreement may be increased upon our request at discretion of banks | $ 750,000,000 |
Financing arrangements - Inte_3
Financing arrangements - Interest Costs (Details) - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |||
Interest paid, net of interest rate and cross currency swaps | $ 2.4 | $ 1.2 | $ 1.2 |
Stockholders' equity - Summary
Stockholders' equity - Summary of Stock Repurchase Program Activity (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Equity [Abstract] | |||||||||||||||
Stock repurchases (in shares) | 0 | 0 | 0 | 0 | 0 | 1.5 | 0 | 24.6 | 6.9 | 4.6 | 6.5 | 3.7 | 0 | 26.1 | 21.7 |
Stock repurchases | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 900 | $ 0 | $ 5,410 | $ 1,461 | $ 1,069 | $ 1,592 | $ 865 | $ 0 | $ 6,310 | $ 4,987 |
Stockholders' equity - Narrativ
Stockholders' equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 12, 2023 | Mar. 31, 2024 | Oct. 31, 2023 | Jul. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Oct. 31, 2022 | Jul. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Oct. 31, 2021 | Jul. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Class of Stock [Line Items] | |||||||||||||||||||||||||||||
Stock repurchases | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 900 | $ 0 | $ 5,410 | $ 1,461 | $ 1,069 | $ 1,592 | $ 865 | $ 0 | $ 6,310 | $ 4,987 | ||||||||||||||
Stock repurchases (in shares) | 0 | 0 | 0 | 0 | 0 | 1,500,000 | 0 | 24,600,000 | 6,900,000 | 4,600,000 | 6,500,000 | 3,700,000 | 0 | 26,100,000 | 21,700,000 | ||||||||||||||
Amount available for stock repurchases under a board approved stock repurchase plan | $ 7,000 | $ 7,000 | |||||||||||||||||||||||||||
Common stock, dividends declared per share (in usd per share) | $ 2.25 | $ 2.13 | $ 2.13 | $ 2.13 | $ 2.13 | $ 1.94 | $ 1.94 | $ 1.94 | $ 1.94 | $ 1.76 | $ 1.76 | $ 1.76 | $ 1.76 | $ 8.64 | $ 7.95 | $ 7.22 | |||||||||||||
Common stock, dividends paid per share (in usd per share) | $ 2.13 | $ 2.13 | $ 2.13 | $ 2.13 | $ 1.94 | $ 1.94 | $ 1.94 | $ 1.94 | $ 1.76 | $ 1.76 | $ 1.76 | $ 1.76 | |||||||||||||||||
Income taxes expense or (benefit) for unrealized gains and losses for cash flow hedges | $ 6 | $ (19) | $ (33) | ||||||||||||||||||||||||||
Income taxes expense or (benefit) for unrealized gains and losses for cash flow hedges and related reclassifications | $ 50 | $ 0 | $ (55) | ||||||||||||||||||||||||||
Preferred stock shares authorized (in shares) | 5,000,000 | 5,000,000 | |||||||||||||||||||||||||||
Preferred stock, par value (in usd per share) | $ 0.0001 | $ 0.0001 | |||||||||||||||||||||||||||
Preferred stock, shares outstanding (in shares) | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Preferred stock, shares issued (in shares) | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Forecast | |||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||
Common stock, dividends paid per share (in usd per share) | $ 2.25 | ||||||||||||||||||||||||||||
Accelerated stock repurchase agreement | |||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||
Stock repurchases | $ 6,000 | ||||||||||||||||||||||||||||
Stock repurchases (in shares) | 23,300,000 | 24,800,000 |
Stockholders' equity - Componen
Stockholders' equity - Components of AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | $ 3,661 | $ 6,700 | $ 9,409 |
Foreign currency translation adjustments | 50 | 496 | (135) |
Unrealized gains (losses) | 28 | 84 | 158 |
Reclassification adjustments to income | (222) | 2 | 253 |
Other gains (losses) | 42 | 2 | 1 |
Income taxes | 44 | (19) | (88) |
Ending balance | 6,232 | 3,661 | 6,700 |
AOCI | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | (231) | (796) | (985) |
Ending balance | (289) | (231) | (796) |
Foreign currency translation | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | (348) | (844) | (709) |
Foreign currency translation adjustments | 50 | 496 | (135) |
Unrealized gains (losses) | 0 | 0 | 0 |
Reclassification adjustments to income | 0 | 0 | 0 |
Other gains (losses) | 0 | 0 | 0 |
Income taxes | 0 | 0 | 0 |
Ending balance | (298) | (348) | (844) |
Cash flow hedges | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | 128 | 61 | (263) |
Foreign currency translation adjustments | 0 | 0 | 0 |
Unrealized gains (losses) | 28 | 84 | 159 |
Reclassification adjustments to income | (222) | 2 | 253 |
Other gains (losses) | 0 | 0 | 0 |
Income taxes | 44 | (19) | (88) |
Ending balance | (22) | 128 | 61 |
Available-for-sale securities | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | 0 | 0 | 1 |
Foreign currency translation adjustments | 0 | 0 | 0 |
Unrealized gains (losses) | 0 | 0 | (1) |
Reclassification adjustments to income | 0 | 0 | 0 |
Other gains (losses) | 0 | 0 | 0 |
Income taxes | 0 | 0 | 0 |
Ending balance | 0 | 0 | 0 |
Other | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | (11) | (13) | (14) |
Foreign currency translation adjustments | 0 | 0 | 0 |
Unrealized gains (losses) | 0 | 0 | 0 |
Reclassification adjustments to income | 0 | 0 | 0 |
Other gains (losses) | 42 | 2 | 1 |
Income taxes | 0 | 0 | 0 |
Ending balance | $ 31 | $ (11) | $ (13) |
Stockholders' equity - Reclassi
Stockholders' equity - Reclassifications Out of AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Gross product sales | $ 28,190 | $ 26,323 | $ 25,979 |
Other income (expense), net | 2,833 | (814) | 259 |
Income before income taxes | 7,855 | 7,346 | 6,701 |
Provision for income taxes | (1,138) | (794) | (808) |
Net income | 6,717 | 6,552 | 5,893 |
Product sales | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Gross product sales | 26,910 | 24,801 | 24,297 |
Reclassification out of AOCI | Cash flow hedges | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Income before income taxes | 222 | (2) | (253) |
Provision for income taxes | (50) | 0 | 55 |
Net income | 172 | (2) | (198) |
Reclassification out of AOCI | Foreign currency contract gains (losses) | Product sales | Cash flow hedges | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Gross product sales | 180 | 231 | (8) |
Reclassification out of AOCI | Cross-currency swap contract gains (losses) | Cash flow hedges | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other income (expense), net | $ 42 | $ (233) | $ (245) |
Fair value measurement - Fair V
Fair value measurement - Fair Value of Financial Assets and Liabilities on Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Assets: | ||||
Available-for-sale securities: | $ 10,404 | $ 4,335 | ||
Other investments | 0 | 130 | ||
Equity securities | 4,514 | 815 | ||
Derivatives: | ||||
Total assets | 15,063 | 5,621 | ||
Derivatives: | ||||
Contingent consideration obligations | 96 | 270 | $ 342 | $ 33 |
Total liabilities | 1,188 | 1,668 | ||
Foreign currency forward contracts | ||||
Derivatives: | ||||
Derivative assets | 145 | 287 | ||
Derivatives: | ||||
Derivative liabilities | 116 | 76 | ||
Cross-currency swap contracts | ||||
Derivatives: | ||||
Derivative assets | 0 | 54 | ||
Derivatives: | ||||
Derivative liabilities | 405 | 541 | ||
Interest rate swap contracts | ||||
Derivatives: | ||||
Derivative assets | 0 | |||
Derivatives: | ||||
Derivative liabilities | 571 | 776 | ||
Forward interest rate contracts | ||||
Derivatives: | ||||
Derivative liabilities | 0 | 5 | ||
U.S. Treasury bills | ||||
Assets: | ||||
Available-for-sale securities: | 0 | 1,676 | ||
Money market mutual funds | ||||
Assets: | ||||
Available-for-sale securities: | 10,266 | 2,659 | ||
Other short-term interest-bearing securities | ||||
Assets: | ||||
Available-for-sale securities: | 138 | 0 | ||
Quoted prices in active markets for identical assets (Level 1) | ||||
Assets: | ||||
Other investments | 0 | 0 | ||
Equity securities | 4,514 | 480 | ||
Derivatives: | ||||
Total assets | 14,780 | 4,815 | ||
Derivatives: | ||||
Contingent consideration obligations | 0 | 0 | ||
Total liabilities | 0 | 0 | ||
Quoted prices in active markets for identical assets (Level 1) | Foreign currency forward contracts | ||||
Derivatives: | ||||
Derivative assets | 0 | 0 | ||
Derivatives: | ||||
Derivative liabilities | 0 | 0 | ||
Quoted prices in active markets for identical assets (Level 1) | Cross-currency swap contracts | ||||
Derivatives: | ||||
Derivative assets | 0 | 0 | ||
Derivatives: | ||||
Derivative liabilities | 0 | 0 | ||
Quoted prices in active markets for identical assets (Level 1) | Interest rate swap contracts | ||||
Derivatives: | ||||
Derivative assets | 0 | |||
Derivatives: | ||||
Derivative liabilities | 0 | 0 | ||
Quoted prices in active markets for identical assets (Level 1) | Forward interest rate contracts | ||||
Derivatives: | ||||
Derivative liabilities | 0 | 0 | ||
Quoted prices in active markets for identical assets (Level 1) | U.S. Treasury bills | ||||
Assets: | ||||
Available-for-sale securities: | 0 | 1,676 | ||
Quoted prices in active markets for identical assets (Level 1) | Money market mutual funds | ||||
Assets: | ||||
Available-for-sale securities: | 10,266 | 2,659 | ||
Quoted prices in active markets for identical assets (Level 1) | Other short-term interest-bearing securities | ||||
Assets: | ||||
Available-for-sale securities: | 0 | 0 | ||
Significant other observable inputs (Level 2) | ||||
Assets: | ||||
Other investments | 0 | 130 | ||
Equity securities | 0 | 0 | ||
Derivatives: | ||||
Total assets | 283 | 471 | ||
Derivatives: | ||||
Contingent consideration obligations | 0 | 0 | ||
Total liabilities | 1,092 | 1,398 | ||
Significant other observable inputs (Level 2) | Foreign currency forward contracts | ||||
Derivatives: | ||||
Derivative assets | 145 | 287 | ||
Derivatives: | ||||
Derivative liabilities | 116 | 76 | ||
Significant other observable inputs (Level 2) | Cross-currency swap contracts | ||||
Derivatives: | ||||
Derivative assets | 0 | 54 | ||
Derivatives: | ||||
Derivative liabilities | 405 | 541 | ||
Significant other observable inputs (Level 2) | Interest rate swap contracts | ||||
Derivatives: | ||||
Derivative assets | 0 | |||
Derivatives: | ||||
Derivative liabilities | 571 | 776 | ||
Significant other observable inputs (Level 2) | Forward interest rate contracts | ||||
Derivatives: | ||||
Derivative liabilities | 0 | 5 | ||
Significant other observable inputs (Level 2) | U.S. Treasury bills | ||||
Assets: | ||||
Available-for-sale securities: | 0 | 0 | ||
Significant other observable inputs (Level 2) | Money market mutual funds | ||||
Assets: | ||||
Available-for-sale securities: | 0 | 0 | ||
Significant other observable inputs (Level 2) | Other short-term interest-bearing securities | ||||
Assets: | ||||
Available-for-sale securities: | 138 | 0 | ||
Significant unobservable inputs (Level 3) | ||||
Assets: | ||||
Other investments | 0 | 0 | ||
Equity securities | 0 | 335 | ||
Derivatives: | ||||
Total assets | 0 | 335 | ||
Derivatives: | ||||
Contingent consideration obligations | 96 | 270 | ||
Total liabilities | 96 | 270 | ||
Significant unobservable inputs (Level 3) | Foreign currency forward contracts | ||||
Derivatives: | ||||
Derivative assets | 0 | 0 | ||
Derivatives: | ||||
Derivative liabilities | 0 | 0 | ||
Significant unobservable inputs (Level 3) | Cross-currency swap contracts | ||||
Derivatives: | ||||
Derivative assets | 0 | 0 | ||
Derivatives: | ||||
Derivative liabilities | 0 | 0 | ||
Significant unobservable inputs (Level 3) | Interest rate swap contracts | ||||
Derivatives: | ||||
Derivative assets | 0 | |||
Derivatives: | ||||
Derivative liabilities | 0 | 0 | ||
Significant unobservable inputs (Level 3) | Forward interest rate contracts | ||||
Derivatives: | ||||
Derivative liabilities | 0 | 0 | ||
Significant unobservable inputs (Level 3) | U.S. Treasury bills | ||||
Assets: | ||||
Available-for-sale securities: | 0 | 0 | ||
Significant unobservable inputs (Level 3) | Money market mutual funds | ||||
Assets: | ||||
Available-for-sale securities: | 0 | 0 | ||
Significant unobservable inputs (Level 3) | Other short-term interest-bearing securities | ||||
Assets: | ||||
Available-for-sale securities: | $ 0 | $ 0 |
Fair value measurement - Narrat
Fair value measurement - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Oct. 19, 2021 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Net changes in valuations | $ 165 | $ 65 | $ (7) | ||
Aggregate fair value of long-term debt, including current portion | $ 59,200 | 59,200 | 35,000 | ||
Carrying value of long-term debt, including current portion | 64,613 | $ 64,613 | 38,945 | ||
Teneobio, Inc. | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Maximum additional consideration due contingent on certain milestones | $ 1,600 | ||||
Teneobio, Inc. | AMG 340 development program liability | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Net changes in valuations | $ 165 | ||||
Other Noncurrent Assets | BeiGene | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Carrying and fair value of investment | 4,200 | ||||
Approximate carrying value of the company's equity method investment | $ 2,200 |
Fair value measurement - Contin
Fair value measurement - Contingent Consideration Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Business Combination, Contingent Consideration [Roll Forward] | |||
Beginning balance | $ 270 | $ 342 | $ 33 |
Additions | 0 | 0 | 309 |
Payments | (9) | (7) | (7) |
Net changes in valuations | (165) | (65) | 7 |
Ending balance | $ 96 | $ 270 | $ 342 |
Derivative instruments - Narrat
Derivative instruments - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative Instruments Gain Loss [Line Items] | ||||
Length of time hedged in foreign currency contracts | 3 years | |||
0.41% CHF700 million bonds due 2023 (0.41% 2023 Swiss franc Bonds) | Notes | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Interest rate, stated percentage | 0.41% | 0.41% | 0.41% | |
Foreign currency and cross currency swap contracts | ||||
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 | $ 35 | |||
Designated as Hedging Instrument | Foreign currency forward contracts | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Notional amount | 6,600 | $ 6,000 | $ 5,700 | |
Designated as Hedging Instrument | Interest rate swap contracts | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Notional amount | 6,700 | 6,700 | ||
Not Designated as Hedging Instrument | Foreign currency forward contracts | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Notional amount | $ 457 | $ 517 | $ 680 |
Derivative instruments - Schedu
Derivative instruments - Schedule of Cross-Currency Swaps (Details) € in Millions, £ in Millions, $ in Millions | Dec. 31, 2023 USD ($) | Dec. 31, 2023 EUR (€) | Dec. 31, 2023 GBP (£) |
2.00% 2026 euro Notes | Notes | |||
Derivative [Line Items] | |||
Interest rate, stated percentage | 2% | 2% | 2% |
5.50% 2026 pound sterling Notes | Notes | |||
Derivative [Line Items] | |||
Interest rate, stated percentage | 5.50% | 5.50% | 5.50% |
4.00% 2029 pound sterling Notes | Notes | |||
Derivative [Line Items] | |||
Interest rate, stated percentage | 4% | 4% | 4% |
Cash flow hedge | Cross-currency swap contracts | 2.00% 2026 euro Notes | |||
Derivative [Line Items] | |||
Notional amount | $ 833 | € 750 | |
Cash flow hedge | Cross-currency swap contracts | 5.50% 2026 pound sterling Notes | |||
Derivative [Line Items] | |||
Notional amount | 747 | £ 475 | |
Cash flow hedge | Cross-currency swap contracts | 4.00% 2029 pound sterling Notes | |||
Derivative [Line Items] | |||
Notional amount | $ 1,111 | £ 700 | |
Cash flow hedge | Cross-currency swap contracts | Euro Member Countries, Euro | 2.00% 2026 euro Notes | |||
Derivative [Line Items] | |||
Interest rates | 2% | 2% | 2% |
Cash flow hedge | Cross-currency swap contracts | United Kingdom, Pounds | 5.50% 2026 pound sterling Notes | |||
Derivative [Line Items] | |||
Interest rates | 5.50% | 5.50% | 5.50% |
Cash flow hedge | Cross-currency swap contracts | United Kingdom, Pounds | 4.00% 2029 pound sterling Notes | |||
Derivative [Line Items] | |||
Interest rates | 4% | 4% | 4% |
Cash flow hedge | Cross-currency swap contracts | United States of America, Dollars | 2.00% 2026 euro Notes | |||
Derivative [Line Items] | |||
Interest rates | 3.90% | 3.90% | 3.90% |
Cash flow hedge | Cross-currency swap contracts | United States of America, Dollars | 5.50% 2026 pound sterling Notes | |||
Derivative [Line Items] | |||
Interest rates | 6% | 6% | 6% |
Cash flow hedge | Cross-currency swap contracts | United States of America, Dollars | 4.00% 2029 pound sterling Notes | |||
Derivative [Line Items] | |||
Interest rates | 4.60% | 4.60% | 4.60% |
Derivative instruments - Effect
Derivative instruments - Effective Portion of Unrealized Gain (Loss) Recognized in AOCI (Details) - Cash flow hedge - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative Instruments Gain Loss [Line Items] | |||
Total unrealized gains | $ 28 | $ 84 | $ 159 |
Foreign currency forward contracts | |||
Derivative Instruments Gain Loss [Line Items] | |||
Total unrealized gains | (14) | 308 | 373 |
Cross-currency swap contracts | |||
Derivative Instruments Gain Loss [Line Items] | |||
Total unrealized gains | 73 | (219) | (214) |
Forward interest rate contracts | |||
Derivative Instruments Gain Loss [Line Items] | |||
Total unrealized gains | $ (31) | $ (5) | $ 0 |
Derivative instruments - Hedged
Derivative instruments - Hedged Liabilities and Cumulative Amount (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Derivative [Line Items] | ||
Cumulative amounts of fair value hedging adjustments related to the carrying amounts of the hedged liabilities | $ (314) | $ (437) |
Current portion of long-term debt | ||
Derivative [Line Items] | ||
Carrying amounts of hedged liabilities | 1,441 | 82 |
Cumulative amounts of fair value hedging adjustments related to the carrying amounts of the hedged liabilities | 41 | 82 |
Carrying value with discontinued hedging relationships | 69 | 82 |
Hedging adjustments on discontinued hedging relationships | 69 | 82 |
Long-term debt | ||
Derivative [Line Items] | ||
Carrying amounts of hedged liabilities | 4,788 | 6,017 |
Cumulative amounts of fair value hedging adjustments related to the carrying amounts of the hedged liabilities | (355) | (519) |
Carrying value with discontinued hedging relationships | 288 | 357 |
Hedging adjustments on discontinued hedging relationships | $ 188 | $ 257 |
Derivative instruments - Summar
Derivative instruments - Summary of Income and Expense Line Items (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative [Line Items] | |||
Total revenues | $ 28,190 | $ 26,323 | $ 25,979 |
Other income (expense), net | 2,833 | (814) | 259 |
Interest expense, net | (2,875) | (1,406) | (1,197) |
Cross-currency swap contract gains (losses) | Reclassification out of Accumulated Other Comprehensive Income | Cash flow hedges | |||
Derivative [Line Items] | |||
Other income (expense), net | 42 | (233) | (245) |
Interest rate swap contracts | |||
Derivative [Line Items] | |||
Gains (losses) on fair value hedging relationships, Hedged Items | (118) | 716 | 281 |
Gains (losses) on fair value hedging relationships, Derivatives designated as hedging instruments | 205 | (636) | (192) |
Total product sales | |||
Derivative [Line Items] | |||
Total revenues | 26,910 | 24,801 | 24,297 |
Total product sales | Foreign currency forward contracts | Reclassification out of Accumulated Other Comprehensive Income | Cash flow hedges | |||
Derivative [Line Items] | |||
Total revenues | $ 180 | $ 231 | $ (8) |
Derivative instruments - Fair V
Derivative instruments - Fair Value of Derivatives (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Total derivative assets, fair value | $ 145 | $ 341 |
Liabilities | ||
Total derivative liabilities, fair value | 1,092 | 1,398 |
Designated as Hedging Instrument | ||
Assets | ||
Total derivative assets, fair value | 145 | 341 |
Liabilities | ||
Total derivative liabilities, fair value | 1,092 | 1,398 |
Designated as Hedging Instrument | Foreign currency forward contracts | Other current assets/ Other noncurrent assets | ||
Assets | ||
Total derivative assets, fair value | 145 | 287 |
Designated as Hedging Instrument | Foreign currency forward contracts | Accrued liabilities/ Other noncurrent liabilities | ||
Liabilities | ||
Total derivative liabilities, fair value | 116 | 76 |
Designated as Hedging Instrument | Cross-currency swap contracts | Other current assets/ Other noncurrent assets | ||
Assets | ||
Total derivative assets, fair value | 0 | 54 |
Designated as Hedging Instrument | Cross-currency swap contracts | Accrued liabilities/ Other noncurrent liabilities | ||
Liabilities | ||
Total derivative liabilities, fair value | 405 | 541 |
Designated as Hedging Instrument | Interest rate swap contracts | Other current assets/ Other noncurrent assets | ||
Assets | ||
Total derivative assets, fair value | 0 | 0 |
Designated as Hedging Instrument | Interest rate swap contracts | Accrued liabilities/ Other noncurrent liabilities | ||
Liabilities | ||
Total derivative liabilities, fair value | 571 | 776 |
Designated as Hedging Instrument | Forward interest rate contracts | Other current assets/ Other noncurrent assets | ||
Assets | ||
Total derivative assets, fair value | 0 | 0 |
Designated as Hedging Instrument | Forward interest rate contracts | Accrued liabilities/ Other noncurrent liabilities | ||
Liabilities | ||
Total derivative liabilities, fair value | $ 0 | $ 5 |
Contingencies and commitments -
Contingencies and commitments - Narrative (Details) | 1 Months Ended | 3 Months Ended | ||||
Jun. 08, 2021 lawsuit | Apr. 30, 2019 lawsuit claim plaintiff | Jan. 10, 2024 patent | Dec. 31, 2023 installment | May 01, 2023 patent | Mar. 11, 2022 state | |
Loss Contingencies [Line Items] | ||||||
U.S. repatriation tax commitments, number of annual installments | installment | 8 | |||||
Prolia/XGEVA Biologics Price Competition And Innovation Act | Pending Litigation | ||||||
Loss Contingencies [Line Items] | ||||||
Potential number of patents infringed upon | patent | 21 | |||||
Sensipar Antitrust Class Actions | Pending Litigation | ||||||
Loss Contingencies [Line Items] | ||||||
Loss contingency, number of plaintiffs | plaintiff | 4 | |||||
Number of lawsuits | claim | 2 | |||||
Loss contingency, number of lawsuits filed | lawsuit | 4 | |||||
Number of states in which plaintiffs reside | state | 10 | |||||
ChemoCentryx, Inc. Securities Matters | ||||||
Loss Contingencies [Line Items] | ||||||
Number of class action law suits | lawsuit | 2 | |||||
ABP 938 Patent Litigation | Pending Litigation | Subsequent Event | ||||||
Loss Contingencies [Line Items] | ||||||
Potential number of patents infringed upon | patent | 32 |
Contingencies and commitments_2
Contingencies and commitments - U.S. Repatriation Tax Commitments (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2024 | $ 1,467 |
2025 | 1,834 |
Total remaining U.S. repatriation tax commitments | $ 3,301 |
SCHEDULE II - VALUATION AND Q_2
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Allowance for doubtful accounts [Roll Forward] | |||
Balance at beginning of period | $ 22 | $ 26 | $ 32 |
Additions charged to costs and expenses | 6 | 0 | 0 |
Other additions | 0 | 0 | 0 |
Deductions | 0 | (4) | (6) |
Balance at end of period | $ 28 | $ 22 | $ 26 |