Cover
Cover - shares | 9 Months Ended | |
Oct. 03, 2021 | Oct. 22, 2021 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 3, 2021 | |
Document Transition Report | false | |
Entity File Number | 1-3215 | |
Entity Registrant Name | Johnson & Johnson | |
Entity Incorporation, State or Country Code | NJ | |
Entity Tax Identification Number | 22-1024240 | |
Entity Address, Address Line One | One Johnson & Johnson Plaza | |
Entity Address, City or Town | New Brunswick | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 08933 | |
City Area Code | 732 | |
Local Phone Number | 524-0400 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 2,632,596,969 | |
Entity Central Index Key | 0000200406 | |
Current Fiscal Year End Date | --01-02 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Common Stock, Par Value $1.00 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock, Par Value $1.00 | |
Trading Symbol | JNJ | |
Security Exchange Name | NYSE | |
0.250% Notes Due January 2022 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 0.250% Notes Due January 2022 | |
Trading Symbol | JNJ22 | |
Security Exchange Name | NYSE | |
0.650% Notes Due May 2024 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 0.650% Notes Due May 2024 | |
Trading Symbol | JNJ24C | |
Security Exchange Name | NYSE | |
5.50% Notes Due November 2024 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 5.50% Notes Due November 2024 | |
Trading Symbol | JNJ24BP | |
Security Exchange Name | NYSE | |
1.150% Notes Due November 2028 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.150% Notes Due November 2028 | |
Trading Symbol | JNJ28 | |
Security Exchange Name | NYSE | |
1.650% Notes Due May 2035 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.650% Notes Due May 2035 | |
Trading Symbol | JNJ35 | |
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Oct. 03, 2021 | Jan. 03, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 17,604 | $ 13,985 |
Marketable securities | 13,397 | 11,200 |
Accounts receivable, trade, less allowances for doubtful accounts and credit losses $223 (2020, $293) | 14,911 | 13,576 |
Inventories (Note 2) | 10,387 | 9,344 |
Prepaid expenses and other | 3,590 | 3,132 |
Total current assets | 59,889 | 51,237 |
Property, plant and equipment at cost | 47,347 | 46,804 |
Less: accumulated depreciation | (28,869) | (28,038) |
Property, plant and equipment, net | 18,478 | 18,766 |
Intangible assets, net (Note 3) | 47,776 | 53,402 |
Goodwill (Note 3) | 35,569 | 36,393 |
Deferred taxes on income (Note 5) | 10,646 | 8,534 |
Other assets | 6,870 | 6,562 |
Total assets | 179,228 | 174,894 |
Current liabilities: | ||
Loans and notes payable | 3,798 | 2,631 |
Accounts payable | 8,961 | 9,505 |
Accrued liabilities | 13,812 | 13,968 |
Accrued rebates, returns and promotions | 12,683 | 11,513 |
Accrued compensation and employee related obligations | 3,146 | 3,484 |
Accrued taxes on income (Note 5) | 2,161 | 1,392 |
Total current liabilities | 44,561 | 42,493 |
Long-term debt (Note 4) | 30,130 | 32,635 |
Deferred taxes on income (Note 5) | 7,147 | 7,214 |
Employee related obligations (Note 6) | 10,171 | 10,771 |
Long-term taxes payable (Note 5) | 5,770 | 6,559 |
Other liabilities | 11,177 | 11,944 |
Total liabilities | 108,956 | 111,616 |
Commitments and Contingencies (Note 11) | ||
Shareholders’ equity: | ||
Common stock — par value $1.00 per share (authorized 4,320,000,000 shares; issued 3,119,843,000 shares) | 3,120 | 3,120 |
Accumulated other comprehensive income (loss) (Note 7) | (15,415) | (15,242) |
Retained earnings | 121,092 | 113,890 |
Less: common stock held in treasury, at cost (487,358,000 and 487,331,000 shares) | 38,525 | 38,490 |
Total shareholders’ equity | 70,272 | 63,278 |
Total liabilities and shareholders' equity | $ 179,228 | $ 174,894 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Oct. 03, 2021 | Jan. 03, 2021 |
Current assets: | ||
Allowances for doubtful accounts | $ 223 | $ 293 |
Shareholders' equity: | ||
Common stock, par value per share (per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 4,320,000,000 | 4,320,000,000 |
Common stock, shares issued (in shares) | 3,119,843,000 | 3,119,843,000 |
Treasury stock, shares (in shares) | 487,358,000 | 487,331,000 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Income Statement [Abstract] | ||||
Sales to customers | $ 23,338 | $ 21,082 | $ 68,971 | $ 60,109 |
Sales to customers percent to sales | 100.00% | 100.00% | 100.00% | 100.00% |
Cost of products sold | $ 7,250 | $ 6,972 | $ 21,900 | $ 20,613 |
Cost of products sold percent to sales | 31.10% | 33.10% | 31.80% | 34.30% |
Gross profit | $ 16,088 | $ 14,110 | $ 47,071 | $ 39,496 |
Gross Profit Percent To Sales | 68.90% | 66.90% | 68.20% | 65.70% |
Selling, marketing and administrative expenses | $ 6,000 | $ 5,431 | $ 17,505 | $ 15,627 |
Selling marketing and administrative expenses percent to sales | 25.70% | 25.80% | 25.40% | 26.00% |
Research and development expense | $ 3,422 | $ 2,840 | $ 9,994 | $ 8,127 |
Research and development expense percent to sales | 14.70% | 13.50% | 14.50% | 13.50% |
In-process research and development | $ 900 | $ 138 | $ 900 | $ 144 |
In-process research and development percent to sales | 3.90% | 0.60% | 1.30% | 0.30% |
Interest income | $ (13) | $ (12) | $ (40) | $ (98) |
Interest income percent to sales | (0.10%) | (0.10%) | (0.10%) | (0.20%) |
Interest expense, net of portion capitalized | $ 20 | $ 44 | $ 123 | $ 114 |
Interest expense, net of portion capitalized percent to sales | 0.10% | 0.20% | 0.20% | 0.20% |
Other (income) expense, net | $ 1,850 | $ 1,200 | $ 480 | $ 545 |
Other (income) expense, net percent to sales | 7.90% | 5.70% | 0.70% | 0.90% |
Restructuring (Note 12) | $ 60 | $ 68 | $ 169 | $ 187 |
Restructuring charge percent to sales | 0.20% | 0.30% | 0.20% | 0.30% |
Earnings before provision for taxes on income | $ 3,849 | $ 4,401 | $ 17,940 | $ 14,850 |
Earnings before provision for taxes on income percent to sales | 16.50% | 20.90% | 26.00% | 24.70% |
Provision for taxes on income (Note 5) | $ 182 | $ 847 | $ 1,798 | $ 1,874 |
Provision for taxes on income percent to sales | 0.80% | 4.00% | 2.60% | 3.10% |
Net earnings | $ 3,667 | $ 3,554 | $ 16,142 | $ 12,976 |
Net earnings percent to sales | 15.70% | 16.90% | 23.40% | 21.60% |
NET EARNINGS PER SHARE | ||||
Basic (per share) | $ 1.39 | $ 1.35 | $ 6.13 | $ 4.93 |
Diluted (per share) | $ 1.37 | $ 1.33 | $ 6.04 | $ 4.86 |
AVG. SHARES OUTSTANDING | ||||
Basic (shares) | 2,632.6 | 2,632.5 | 2,632.2 | 2,633 |
Diluted (shares) | 2,674.9 | 2,669.3 | 2,674.6 | 2,670.8 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 3,667 | $ 3,554 | $ 16,142 | $ 12,976 |
Other comprehensive income (loss), net of tax | ||||
Foreign currency translation | (382) | 222 | (241) | (741) |
Securities: | ||||
Unrealized holding gain (loss) arising during period | 0 | 1 | (1) | 1 |
Reclassifications to earnings | 0 | 0 | 0 | 0 |
Net change | 0 | 1 | (1) | 1 |
Employee benefit plans: | ||||
Prior service cost amortization during period | (40) | (6) | (122) | (17) |
Gain (loss) amortization during period | 273 | 203 | 822 | 604 |
Net change | 233 | 197 | 700 | 587 |
Derivatives & hedges: | ||||
Unrealized gain (loss) arising during period | 67 | 199 | (55) | 1,052 |
Reclassifications to earnings | (233) | (24) | (576) | 54 |
Net change | (166) | 175 | (631) | 1,106 |
Other comprehensive income (loss) | (315) | 595 | (173) | 953 |
Comprehensive income | $ 3,352 | $ 4,149 | $ 15,969 | $ 13,929 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Foreign Currency Translation | $ (86) | $ 139 | $ (315) | $ (207) |
Employee Benefit Plans | 65 | 56 | 197 | 167 |
Derivatives & Hedges | $ (43) | $ 47 | $ (167) | $ 293 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Retained Earnings | Accumulated Other Comprehensive Income | Common Stock Issued Amount | Treasury Stock Amount |
Beginning Balance at Dec. 29, 2019 | $ 59,471 | $ 110,659 | $ (15,891) | $ 3,120 | $ (38,417) |
Net earnings | 12,976 | 12,976 | |||
Cash dividends paid | (7,823) | (7,823) | |||
Employee compensation and stock option plans | 1,866 | (911) | 2,777 | ||
Repurchase of common stock | (2,900) | (2,900) | |||
Other | (70) | (70) | |||
Other comprehensive income (loss), net of tax | 953 | 953 | |||
Ending Balance at Sep. 27, 2020 | 64,473 | 114,831 | (14,938) | 3,120 | (38,540) |
Beginning Balance at Jun. 28, 2020 | 62,978 | 113,898 | (15,533) | 3,120 | (38,507) |
Net earnings | 3,554 | 3,554 | |||
Cash dividends paid | (2,659) | (2,659) | |||
Employee compensation and stock option plans | 559 | 109 | 450 | ||
Repurchase of common stock | (483) | (483) | |||
Other | (71) | (71) | |||
Other comprehensive income (loss), net of tax | 595 | 595 | |||
Ending Balance at Sep. 27, 2020 | 64,473 | 114,831 | (14,938) | 3,120 | (38,540) |
Beginning Balance at Jan. 03, 2021 | 63,278 | 113,890 | (15,242) | 3,120 | (38,490) |
Net earnings | 16,142 | 16,142 | |||
Cash dividends paid | (8,241) | (8,241) | |||
Employee compensation and stock option plans | 1,726 | (699) | 2,425 | ||
Repurchase of common stock | (2,460) | (2,460) | |||
Other comprehensive income (loss), net of tax | (173) | (173) | |||
Ending Balance at Oct. 03, 2021 | 70,272 | 121,092 | (15,415) | 3,120 | (38,525) |
Beginning Balance at Jul. 04, 2021 | 69,580 | 120,154 | (15,100) | 3,120 | (38,594) |
Net earnings | 3,667 | 3,667 | |||
Cash dividends paid | (2,791) | (2,791) | |||
Employee compensation and stock option plans | 522 | 62 | 460 | ||
Repurchase of common stock | (391) | (391) | |||
Other comprehensive income (loss), net of tax | (315) | (315) | |||
Ending Balance at Oct. 03, 2021 | $ 70,272 | $ 121,092 | $ (15,415) | $ 3,120 | $ (38,525) |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends paid (in dollars per share) | $ 1.06 | $ 1.01 | $ 3.13 | $ 2.97 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | Jan. 03, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||||
Net earnings | $ 3,667 | $ 3,554 | $ 16,142 | $ 12,976 | |
Adjustments to reconcile net earnings to cash flows from operating activities: | |||||
Depreciation and amortization of property and intangibles | 5,547 | 5,291 | |||
Stock based compensation | 920 | 845 | |||
Asset write-downs | 964 | 198 | |||
Contingent consideration reversal | 0 | (1,148) | |||
Net gain on sale of assets/businesses | (601) | (60) | |||
Deferred tax provision | (2,564) | (238) | |||
Credit losses and accounts receivable allowances | (60) | 74 | |||
Changes in assets and liabilities, net of effects from acquisitions and divestitures: | |||||
Increase in accounts receivable | (1,818) | (440) | |||
Increase in inventories | (1,178) | (784) | |||
Increase/(Decrease) in accounts payable and accrued liabilities | 182 | (119) | |||
Decrease/(Increase) in other current and non-current assets | 2,082 | (1,983) | |||
(Decrease)/Increase in other current and non-current liabilities | (1,938) | 581 | |||
NET CASH FLOWS FROM OPERATING ACTIVITIES | 17,678 | 15,193 | |||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||
Additions to property, plant and equipment | (2,237) | (2,024) | |||
Proceeds from the disposal of assets/businesses, net (Note 10) | 666 | 100 | |||
Acquisitions, net of cash acquired (Note 10) | 0 | (949) | |||
Purchases of investments | (18,843) | (16,243) | |||
Sales of investments | 16,809 | 6,585 | |||
Credit support agreements activity, net | 696 | 125 | |||
Other (primarily licenses and milestones) | (414) | (516) | |||
NET CASH USED BY INVESTING ACTIVITIES | (3,323) | (12,922) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||
Dividends to shareholders | (8,241) | (7,823) | |||
Repurchase of common stock | (2,460) | (2,900) | |||
Proceeds from short-term debt | 1,283 | 3,335 | |||
Repayment of short-term debt | (821) | (310) | |||
Proceeds from long-term debt, net of issuance costs | 3 | 7,431 | |||
Repayment of long-term debt | (1,452) | (562) | |||
Proceeds from the exercise of stock options/employee withholding tax on stock awards, net | 808 | 922 | |||
Credit support agreements activity, net | 168 | 0 | |||
Other | 101 | (569) | |||
NET CASH USED BY FINANCING ACTIVITIES | (10,611) | (476) | |||
Effect of exchange rate changes on cash and cash equivalents | (125) | (135) | |||
Increase in cash and cash equivalents | 3,619 | 1,660 | |||
Cash and Cash equivalents, beginning of period | 13,985 | 17,305 | $ 17,305 | ||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 17,604 | $ 18,965 | 17,604 | 18,965 | $ 13,985 |
Acquisitions | |||||
Fair value of assets acquired | 0 | 1,173 | |||
Fair value of liabilities assumed and noncontrolling interests | 0 | (224) | |||
Net cash paid for acquisitions | $ 0 | $ 949 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Oct. 03, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | The accompanying unaudited interim consolidated financial statements and related notes should be read in conjunction with the audited Consolidated Financial Statements of Johnson & Johnson and its subsidiaries (the Company) and related notes as contained in the Company’s Annual Report on Form 10-K for the fiscal year ended January 3, 2021. The unaudited interim financial statements include all adjustments (consisting only of normal recurring adjustments) and accruals necessary in the judgment of management for a fair statement of the results for the periods presented. Columns and rows within tables may not add due to rounding. Percentages have been calculated using actual, non-rounded figures. Use of Estimates The extent to which COVID-19 impacts the Company’s business and financial results will depend on numerous evolving factors including, but not limited to: the magnitude and duration of COVID-19, the extent to which it will impact worldwide macroeconomic conditions including interest rates, employment rates and health insurance coverage, the speed of the anticipated recovery, and governmental and business reactions to the pandemic. The Company assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to the Company and the unknown future impacts COVID-19 as of October 3, 2021 and through the date of this report. The accounting matters assessed included, but were not limited to, the Company’s allowance for doubtful accounts and credit losses, inventory and related reserves, accrued rebates and associated reserves, and the carrying value of the goodwill and other long-lived assets along with the Company’s on-going vaccine development and distribution efforts. While there was not a material impact to the Company’s consolidated financial statements as of and for the quarter ended October 3, 2021, the Company’s future assessment of the magnitude and duration of COVID-19, as well as other factors, could result in material impacts to the Company’s consolidated financial statements in future reporting periods. New Accounting Standards The Company assesses the adoption impacts of recently issued accounting standards by the Financial Accounting Standards Board on the Company's financial statements as well as material updates to previous assessments, if any, from the Company’s Annual Report on Form 10-K for the fiscal year ended January 3, 2021. There were no new material accounting standards issued in the fiscal nine months of 2021 that impacted the Company. Recently Adopted Accounting Standards There were no new material accounting standards adopted in the fiscal nine months of 2021. Reclassification Certain prior period amounts have been reclassified to conform to current year presentation. |
Inventories
Inventories | 9 Months Ended |
Oct. 03, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES (Dollars in Millions) October 3, 2021 January 3, 2021 Raw materials and supplies $ 1,587 1,410 Goods in process 2,164 2,040 Finished goods 6,636 5,894 Total inventories $ 10,387 9,344 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 9 Months Ended |
Oct. 03, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | INTANGIBLE ASSETS AND GOODWILL Intangible assets that have finite useful lives are amortized over their estimated useful lives. The latest annual impairment assessment of goodwill and indefinite lived intangible assets was completed in the fiscal fourth quarter of 2020. Future impairment tests for goodwill and indefinite lived intangible assets will be performed annually in the fiscal fourth quarter, or sooner, if warranted. (Dollars in Millions) October 3, 2021 January 3, 2021 Intangible assets with definite lives: Patents and trademarks — gross $ 39,176 39,990 Less accumulated amortization (19,569) (17,618) Patents and trademarks — net 19,607 22,372 Customer relationships and other intangibles — gross 22,950 22,898 Less accumulated amortization (11,637) (10,912) Customer relationships and other intangibles — net* 11,313 11,986 Intangible assets with indefinite lives: Trademarks 7,013 7,195 Purchased in-process research and development (1) 9,843 11,849 Total intangible assets with indefinite lives 16,856 19,044 Total intangible assets — net $ 47,776 53,402 *The majority is comprised of customer relationships (1) In the fiscal third quarter of 2021, the Company recorded a partial IPR&D impairment charge of $0.9 billion primarily related to expected development delays in the general surgery digital robotics platform (Ottava) acquired with the Auris Health acquisition in 2019. The impairment charge was calculated based on revisions to the discounted cash flow valuation model reflecting a delay of first in human procedures of approximately two years from the initial acquisition model assumption of the second half of 2022. The remaining reduction was driven by assets that reached commercialization and are now classified as having definite lives. Goodwill as of October 3, 2021 was allocated by segment of business as follows: (Dollars in Millions) Consumer Health Pharmaceutical Medical Devices Total Goodwill at January 3, 2021 $ 10,336 11,009 15,048 36,393 Goodwill, related to acquisitions — — — — Goodwill, related to divestitures (7) — — (7) Currency translation/Other (347) (283) (187) (817) Goodwill at October 3, 2021 $ 9,982 10,726 14,861 35,569 The weighted average amortization period for patents and trademarks is 12 years. The weighted average amortization period for customer relationships and other intangible assets is 21 years. The amortization expense of amortizable intangible assets included in cost of products sold was $1.1 billion and $1.2 billion for the fiscal third quarters ended October 3, 2021 and September 27, 2020, respectively. The amortization expense of amortizable intangible assets included in cost of products sold was $3.6 billion and $3.4 billion for the fiscal nine months ended October 3, 2021 and September 27, 2020, respectively. Intangible asset write-downs are included in Other (income) expense, net. The estimated amortization expense for approved products, before tax, for the five succeeding years is approximately: (Dollars in Millions) 2021 2022 2023 2024 2025 $4,700 4,500 4,500 4,300 3,600 See Note 10 to the Consolidated Financial Statements for additional details related to acquisitions and divestitures. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Oct. 03, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS The Company uses forward foreign exchange contracts to manage its exposure to the variability of cash flows, primarily related to the foreign exchange rate changes of future intercompany product and third-party purchases of materials denominated in a foreign currency. The Company uses cross currency interest rate swaps to manage currency risk primarily related to borrowings. Both types of derivatives are designated as cash flow hedges. Additionally, the Company uses interest rate swaps as an instrument to manage interest rate risk related to fixed rate borrowings. These derivatives are designated as fair value hedges. The Company uses cross currency interest rate swaps and forward foreign exchange contracts designated as net investment hedges. Additionally, the Company uses forward foreign exchange contracts to offset its exposure to certain foreign currency assets and liabilities. These forward foreign exchange contracts are not designated as hedges, and therefore, changes in the fair values of these derivatives are recognized in earnings, thereby offsetting the current earnings effect of the related foreign currency assets and liabilities. The Company does not enter into derivative financial instruments for trading or speculative purposes, or that contain credit risk related contingent features. The Company maintains credit support agreements (CSA) with certain derivative counterparties establishing collateral thresholds based on respective credit ratings and netting agreements. As of October 3, 2021, the cumulative amount of cash collateral paid by the Company under the CSA amounted to $202 million net, related to net investment and cash flow hedges. On an ongoing basis, the Company monitors counter-party credit ratings. The Company considers credit non-performance risk to be low, because the Company primarily enters into agreements with commercial institutions that have at least an investment grade credit rating. Refer to the table on significant financial assets and liabilities measured at fair value contained in this footnote for receivables and payables with these commercial institutions. As of October 3, 2021, the Company had notional amounts outstanding for forward foreign exchange contracts, cross currency interest rate swaps and interest rate swaps of $45.8 billion, $35.1 billion and $10.0 billion, respectively. As of January 3, 2021, the Company had notional amounts outstanding for forward foreign exchange contracts and cross currency interest rate swaps of $37.8 billion and $30.6 billion, respectively. All derivative instruments are recorded on the balance sheet at fair value. Changes in the fair value of derivatives are recorded each period in current earnings or other comprehensive income, depending on whether the derivative is designated as part of a hedge transaction, and if so, the type of hedge transaction. The designation as a cash flow hedge is made at the entrance date of the derivative contract. At inception, all derivatives are expected to be highly effective. Foreign exchange contracts designated as cash flow hedges are accounted for under the forward method and all gains/losses associated with these contracts will be recognized in the income statement when the hedged item impacts earnings. Changes in the fair value of these derivatives are recorded in accumulated other comprehensive income until the underlying transaction affects earnings and are then reclassified to earnings in the same account as the hedged transaction. Gains and losses associated with interest rate swaps and changes in fair value of hedged debt attributable to changes in interest rates are recorded to interest expense in the period in which they occur. Gains and losses on net investment hedges are accounted for through the currency translation account within accumulated other comprehensive income. The portion excluded from effectiveness testing is recorded through interest (income) expense using the spot method. On an ongoing basis, the Company assesses whether each derivative continues to be highly effective in offsetting changes of hedged items. If and when a derivative is no longer expected to be highly effective, hedge accounting is discontinued. The Company designated its Euro denominated notes issued in May 2016 with due dates ranging from 2022 to 2035 as a net investment hedge of the Company's investments in certain of its international subsidiaries that use the Euro as their functional currency in order to reduce the volatility caused by changes in exchange rates. As of October 3, 2021, the balance of deferred net gain on derivatives included in accumulated other comprehensive income was $21 million after-tax. For additional information, see the Consolidated Statements of Comprehensive Income and Note 7. The Company expects that substantially all of the amounts related to forward foreign exchange contracts will be reclassified into earnings over the next 12 months as a result of transactions that are expected to occur over that period. The maximum length of time over which the Company is hedging transaction exposure is 18 months, excluding interest rate contracts and net investment hedge contracts. The amount ultimately realized in earnings may differ as foreign exchange rates change. Realized gains and losses are ultimately determined by actual exchange rates at maturity of the derivative. The following table is a summary of the activity related to derivatives and hedges for the fiscal third quarters ended in 2021 and 2020, net of tax: October 3, 2021 September 27, 2020 (Dollars in Millions) Sales Cost of Products Sold R&D Expense Interest (Income) Expense Other (Income) Expense Sales Cost of Products Sold R&D Expense Interest (Income) Expense Other (Income) Expense The effects of fair value, net investment and cash flow hedging: Gain (Loss) on fair value hedging relationship: Interest rate swaps contracts: Hedged items $ — — — (62) — — — — — Derivatives designated as hedging instruments — — — 62 — — — — — Gain (Loss) on net investment hedging relationship: Cross currency interest rate swaps contracts: Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing — — — 34 — — — — 39 — Amount of gain or (loss) recognized in AOCI — — — 34 — — — — 39 — Gain (Loss) on cash flow hedging relationship: Forward foreign exchange contracts: Amount of gain or (loss) reclassified from AOCI into income (3) 58 8 — 19 3 (81) (13) — (8) Amount of gain or (loss) recognized in AOCI (35) (155) 37 — 42 16 156 (36) — (41) Cross currency interest rate swaps contracts: Amount of gain or (loss) reclassified from AOCI into income — — — 117 — — — 84 — Amount of gain or (loss) recognized in AOCI $ — — — 144 — — — — 65 — The following table is a summary of the activity related to derivatives and hedges for the fiscal nine months ended in 2021 and 2020, net of tax: October 3, 2021 September 27, 2020 (Dollars in Millions) Sales Cost of Products Sold R&D Expense Interest (Income) Expense Other (Income) Expense Sales Cost of Products Sold R&D Expense Interest (Income) Expense Other (Income) Expense The effects of fair value, net investment and cash flow hedging: Gain (Loss) on fair value hedging relationship: Interest rate swaps contracts: Hedged items $ — — — (56) — — — — — Derivatives designated as hedging instruments — — — 56 — — — — — Gain (Loss) on net investment hedging relationship: Cross currency interest rate swaps contracts: Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing — — — 115 — — — — 118 — Amount of gain or (loss) recognized in AOCI — — — 115 — — — — 118 — Gain (Loss) on cash flow hedging relationship: Forward foreign exchange contracts: Amount of gain or (loss) reclassified from AOCI into income 25 106 (1) — 24 10 (316) (121) — (10) Amount of gain or (loss) recognized in AOCI (41) (398) 80 — 67 25 330 (156) — (55) Cross currency interest rate swaps contracts: Amount of gain or (loss) reclassified from AOCI into income — — — 307 — — — — 265 — Amount of gain or (loss) recognized in AOCI $ — — — 122 — — — — 790 — As of October 3, 2021, and January 3, 2021, the following amounts were recorded on the Consolidated Balance Sheet related to cumulative basis adjustment for fair value hedges Line item in the Consolidated Balance Sheet in which the hedged item is included Carrying Amount of the Hedged Liability Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liability (Dollars in Millions) October 3, 2021 January 3, 2021 October 3, 2021 January 3, 2021 Long-term Debt 9,851 — (73) — The following table is the effect of derivatives not designated as hedging instruments for the fiscal third quarters and fiscal nine months in 2021 and 2020: Gain/(Loss) Gain/(Loss) (Dollars in Millions) Location of Gain /(Loss) Recognized in Income on Derivative Fiscal Third Quarter Ended Fiscal Nine Months Ended Derivatives Not Designated as Hedging Instruments October 3, 2021 September 27, 2020 October 3, 2021 September 27, 2020 Foreign Exchange Contracts Other (income) expense $ (13) 1 (50) 66 The following table is the effect of net investment hedges for the fiscal third quarters ended in 2021 and 2020: Gain/(Loss) Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income Into Income Gain/(Loss) Reclassified From (Dollars in Millions) October 3, 2021 September 27, 2020 October 3, 2021 September 27, 2020 Debt $ 115 (169) Interest (income) expense — — Cross Currency interest rate swaps $ 141 (234) Interest (income) expense — — The following table is the effect of net investment hedges for the fiscal nine months ended in 2021 and 2020: Gain/(Loss) Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income Into Income Gain/(Loss) Reclassified From (Dollars in Millions) October 3, 2021 September 27, 2020 October 3, 2021 September 27, 2020 Debt $ 279 (217) Interest (income) expense — — Cross Currency interest rate swaps $ 432 407 Interest (income) expense — — The Company holds equity investments with readily determinable fair values and equity investments without readily determinable fair values. The Company has elected to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The following table is a summary of the activity related to equity investments: (Dollars in Millions) January 3, 2021 October 3, 2021 Carrying Value Changes in Fair Value Reflected in Net Income (1) Sales/ Purchases/Other (2) Carrying Value Non Current Other Assets Equity Investments with readily determinable value $ 1,481 (83) 469 1,867 1,867 Equity Investments without readily determinable value $ 738 392 (545) 585 585 (1) Recorded in Other Income/Expense (2) Other includes impact of currency For equity investments without readily determinable market values, there was a decrease of $25 million in the fair value reflected in net income as a result of impairments. There was an offsetting increase of $417 million in the fair value reflected in net income due to changes in observable prices and gains on the disposal of the Grail investment. Fair value is the exit price that would be received to sell an asset or paid to transfer a liability. Fair value is a market-based measurement determined using assumptions that market participants would use in pricing an asset or liability. In accordance with ASC 820, a three-level hierarchy was established to prioritize the inputs used in measuring fair value. The levels within the hierarchy are described below with Level 1 inputs having the highest priority and Level 3 inputs having the lowest. The fair value of a derivative financial instrument (i.e., forward foreign exchange contracts, interest rate contracts) is the aggregation by currency of all future cash flows discounted to its present value at the prevailing market interest rates and subsequently converted to the U.S. Dollar at the current spot foreign exchange rate. The Company does not believe that fair values of these derivative instruments materially differ from the amounts that could be realized upon settlement or maturity, or that the changes in fair value will have a material effect on the Company’s results of operations, cash flows or financial position. The Company also holds equity investments which are classified as Level 1 and debt securities which are classified as Level 2. The Company holds acquisition related contingent liabilities based upon certain regulatory and commercial events, which are classified as Level 3, whose values are determined using discounted cash flow methodologies or similar techniques for which the determination of fair value requires significant judgment or estimations. The following three levels of inputs are used to measure fair value: Level 1 — Quoted prices in active markets for identical assets and liabilities. Level 2 — Significant other observable inputs. Level 3 — Significant unobservable inputs. The Company’s significant financial assets and liabilities measured at fair value as of October 3, 2021 and January 3, 2021 were as follows: October 3, 2021 January 3, 2021 (Dollars in Millions) Level 1 Level 2 Level 3 Total Total (1) Derivatives designated as hedging instruments: Assets: Forward foreign exchange contracts $ — 459 — 459 849 Interest rate contracts (2) — 707 — 707 240 Total — 1,166 — 1,166 1,089 Liabilities: Forward foreign exchange contracts — 768 — 768 702 Interest rate contracts (2) — 468 — 468 1,569 Total — 1,236 — 1,236 2,271 Derivatives not designated as hedging instruments: Assets: Forward foreign exchange contracts — 51 — 51 49 Liabilities: Forward foreign exchange contracts — 48 — 48 38 Other Investments: Equity investments (3) 1,867 — — 1,867 1,481 Debt securities (4) — 18,911 — 18,911 14,042 Other Liabilities Contingent consideration (5) $ — — 613 613 633 Gross to Net Derivative Reconciliation October 3, 2021 January 3, 2021 (Dollars in Millions) Total Gross Assets $ 1,217 1,138 Credit Support Agreement (CSA) (1,058) (1,107) Total Net Asset 159 31 Total Gross Liabilities 1,284 2,309 Credit Support Agreement (CSA) (1,260) (2,172) Total Net Liabilities $ 24 137 Summarized information about changes in liabilities for contingent consideration is as follows: October 3, 2021 September 27, 2020 (Dollars in Millions) Beginning Balance $ 633 $ 1,715 Changes in estimated fair value (6) 28 (1,088) Additions — 107 Payments (48) (98) Ending Balance $ 613 $ 636 (1) 2020 assets and liabilities are all classified as Level 2 with the exception of equity investments of $1,481 million, which are classified as Level 1 and contingent consideration of $633 million, classified as Level 3. (2) Includes cross currency interest rate swaps and interest rate swaps as of October 3, 2021. Includes cross currency interest rate swaps as of January 3, 2021. (3) Classified as non-current other assets. (4) Classified within cash equivalents and current marketable securities. (5) Includes $595 million and $594 million, classified as non-current other liabilities as of October 3, 2021 and January 3, 2021, respectively. Includes $18 million and $39 million classified as current liabilities as of October 3, 2021 and January 3, 2021, respectively. (6) Ongoing fair value adjustment amounts are primarily recorded in Research and Development expense. The Company recorded a contingent consideration reversal of $1,148 million in 2020 related to the timing of certain developmental milestones associated with the Auris Health acquisition. The reversal of the contingent consideration was recorded in Other income and expense, net. The Company's cash, cash equivalents and current marketable securities as of October 3, 2021 comprised: (Dollars in Millions) Carrying Amount Unrecognized Gain Unrecognized Loss Estimated Fair Value Cash & Cash Equivalents Current Marketable Securities Cash $ 2,607 — — 2,607 2,607 — Non-U.S. sovereign securities (1) 870 — — 870 — 870 U.S. reverse repurchase agreements 1,715 — — 1,715 1,715 — Corporate debt securities (1) 3,604 — — 3,604 274 3,330 Money market funds 2,120 — — 2,120 2,120 — Time deposits (1) 1,174 — — 1,174 1,174 — Subtotal 12,090 — — 12,090 7,890 4,200 Unrealized Gain Unrealized Loss U.S. Gov't securities 18,657 — — 18,657 9,697 8,960 Other sovereign securities 3 — — 3 2 1 Corporate debt securities 251 — — 251 15 236 Subtotal available for sale debt (2) $ 18,911 — — 18,911 9,714 9,197 Total cash, cash equivalents and current marketable securities $ 31,001 — — 31,001 17,604 13,397 (1) Held to maturity investments are reported at amortized cost and gains or losses are reported in earnings. (2) Available for sale debt securities are reported at fair value with unrealized gains and losses reported net of taxes in other comprehensive income. As of the fiscal year ended January 3, 2021 the carrying amount was approximately the same as the estimated fair value. Fair value of government securities and obligations and corporate debt securities was estimated using quoted broker prices and significant other observable inputs. The Company classifies all highly liquid investments with stated maturities of three months or less from date of purchase as cash equivalents and all highly liquid investments with stated maturities of greater than three months from the date of purchase as current marketable securities. Available for sale securities with stated maturities of greater than one year from the date of purchase are available to fund current operations and are classified as cash equivalents and current marketable securities. The contractual maturities of the available for sale securities as of October 3, 2021 are as follows: (Dollars in Millions) Cost Basis Fair Value Due within one year $ 18,895 18,895 Due after one year through five years 16 16 Due after five years through ten years — — Total debt securities $ 18,911 18,911 Financial Instruments not measured at Fair Value: The following financial liabilities are held at carrying amount on the consolidated balance sheet as of October 3, 2021: (Dollars in Millions) Carrying Amount Estimated Fair Value Financial Liabilities Current Debt $ 3,798 3,808 Non-Current Debt 6.73% Debentures due 2023 250 285 3.375% Notes due 2023 802 857 2.05% Notes due 2023 499 511 0.650% Notes due 2024 (750MM Euro 1.1581) 867 889 5.50% Notes due 2024 (500 MM GBP 1.3465) 671 769 2.625% Notes due 2025 749 794 0.55% Notes due 2025 993 982 2.45% Notes due 2026 1,995 2,119 2.95% Notes due 2027 989 1,078 0.95% Notes due 2027 1,489 1,464 2.90% Notes due 2028 1,495 1,622 1.150% Notes due 2028 (750MM Euro 1.1581) 863 932 6.95% Notes due 2029 297 414 1.30% Notes due 2030 1,733 1,678 4.95% Debentures due 2033 498 647 4.375% Notes due 2033 855 1,059 1.650% Notes due 2035 (1.5B Euro 1.1581) 1,723 1,963 3.55% Notes due 2036 980 1,134 5.95% Notes due 2037 993 1,439 3.625% Notes due 2037 1,481 1,721 3.40% Notes due 2038 992 1,122 5.85% Debentures due 2038 696 1,013 4.50% Debentures due 2040 540 693 2.10% Notes due 2040 979 933 4.85% Notes due 2041 297 393 4.50% Notes due 2043 496 640 3.70% Notes due 2046 1,975 2,319 3.75% Notes due 2047 974 1,157 3.50% Notes due 2048 743 860 2.25% Notes due 2050 986 928 2.45% Notes due 2060 1,225 1,150 Other 5 6 Total Non-Current Debt $ 30,130 33,571 The weighted average effective interest rate on non-current debt is 2.98%. The excess of the estimated fair value over the carrying value of debt was $5.4 billion at January 3, 2021. The current debt balance as of October 3, 2021 includes $1.3 billion of commercial paper which has a weighted average interest rate of 0.08% and a weighted average maturity of approximately three months. Fair value of the non-current debt was estimated using market prices, which were corroborated by quoted broker prices and significant other observable inputs. |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 03, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The worldwide effective income tax rates for the fiscal nine months of 2021 and 2020 were 10.0% an d 12.6%, respectively. In the second fiscal quarter of 2021, the Company reorganized the ownership structure of certain wholly-owned international subsidiaries. As part of this reorganization, the Company increased the tax basis of certain assets to fair value in accordance with applicable local regulations. Accordingly, the Company recorded a local deferred tax benefit of approximately $2.3 billion, which was partially offset by a related increase in the U.S. GILTI deferred tax liability of approximately $1.7 billion. The net impact of this restructuring was approximately $0.6 billion net benefit or 3.4% decrease to the 2021 year-to-date effective tax rate. In 2019, Switzerland enacted the Federal Act on Tax Reform and AHV Financing (TRAF), which became effective on January 1, 2020. More information on the provisions of TRAF can be found in the Company’s Annual Report on Form 10-K for the year ended January 3, 2021. During the first fiscal quarter of 2020, the final canton where the Company maintains significant operations enacted TRAF legislation and, accordingly, the Company recorded a deferred tax benefit of approximately $0.3 billion for the remeasurement of existing deferred tax liabilities offset by a related $0.2 billion increase in U.S. GILTI deferred taxes. During the second fiscal quarter of 2020, the Company received rulings from the Swiss Federal and cantonal tax authorities in the remaining jurisdictions where it has significant operations. These rulings resulted in the Company increasing the tax basis of certain assets to fair value. As a result, the Company recorded additional deferred tax benefits in the second fiscal quarter of 2020 to recognize this step-up. The total benefit recorded related to Swiss Tax reform in the fiscal nine months of 2020 was approximately $0.4 billion, or 2.7% net benefit to the Company’s year-to-date effective tax rate, inclusive of the impact of U.S. GILTI deferred taxes. Additionally the following items impacted the Company’s effective tax rate as compared to the same period in the prior fiscal year: • as a result of the recent filing of the 2020 U.S. tax return, as well as the impact of non-recurring favorable tax items, the Company recorded a 1.0% net benefit to the effective tax rate for the fiscal nine months of 2021. • in the third quarter of 2021 the Company accrued additional legal expenses, $1.4 billion for the Talc related litigation at an effective tax rate of 23.5% and $0.8 billion for the Risperdal settlement at an effective tax rate of 16.4% (See note 11 to the Consolidated Financial Statements for more details). • in the third quarter of 2021 the Company recorded a partial IPR&D charge of $0.9 billion for the Ottava intangible asset (acquired with the Auris Health acquisition in 2019) at an effective rate of 22.4% (See Notes 3 and 9 to the Consolidated Financial Statements for more details). • in the fiscal nine months of 2020, the Company reduced a contingent consideration liability related to the 2019 Auris Health acquisition that benefited the fiscal nine months of 2020 tax rate by approximately 1.0% (see Note 4 to the Consolidated Financial Statements for more details). • the Company had lower income in higher tax jurisdictions relative to lower tax jurisdictions as compared to the same period in the prior year. The Company also generated additional tax benefits from stock-based compensation that were either exercised or vested during the first three fiscal quarters of 2021 and 2020. Additionally the company has reversed unrecognized tax benefit liabilities in 2021 as a result of the completion of tax examinations in certain international jurisdictions. As of October 3, 2021, the Company had approximately $3.3 billion of liabilities from unrecognized tax benefits. The Company conducts business and files tax returns in numerous countries and currently has tax audits in progress in a number of jurisdictions. With respect to the United States, the IRS has completed its audit for the tax years through 2012 and is currently auditing tax years 2013 through 2016. In other major jurisdictions where the Company conducts business, the years that remain open to tax audit or are under appeal go back to the year 2008. The Company believes it is possible that tax audits may be completed over the next twelve months by taxing authorities in some jurisdictions outside of the United States. However, the Company is not able to provide a reasonably reliable estimate of the timing of any other future tax payments relating to uncertain tax positions. |
Pensions and Other Benefit Plan
Pensions and Other Benefit Plans | 9 Months Ended |
Oct. 03, 2021 | |
Retirement Benefits [Abstract] | |
Pensions and Other Benefit Plans | PENSIONS AND OTHER BENEFIT PLANS Components of Net Periodic Benefit Cost Net periodic benefit costs for the Company’s defined benefit retirement plans and other benefit plans include the following components: Fiscal Third Quarter Ended Fiscal Nine Months Ended Retirement Plans Other Benefit Plans Retirement Plans Other Benefit Plans (Dollars in Millions) October 3, 2021 September 27, 2020 October 3, 2021 September 27, 2020 October 3, 2021 September 27, 2020 October 3, 2021 September 27, 2020 Service cost $ 339 330 78 72 1,019 979 232 216 Interest cost 192 238 20 33 578 715 61 99 Expected return on plan assets (661) (617) (1) (2) (1,988) (1,839) (5) (5) Amortization of prior service cost/(credit) (46) — (8) (7) (136) 1 (23) (23) Recognized actuarial losses 314 224 38 36 944 669 113 107 Curtailments and settlements — — — — 1 19 — — Net periodic benefit cost $ 138 175 127 132 418 544 378 394 The service cost component of net periodic benefit cost is presented in the same line items on the Consolidated Statement of Earnings where other employee compensation costs are reported. All other components of net periodic benefit cost are presented as part of Other (income) expense, net on the Consolidated Statement of Earnings. Company Contributions For the fiscal nine months ended October 3, 2021, the Company contributed $71 million and $232 million to its U.S. and international retirement plans, respectively. The Company plans to continue to fund its U.S. defined benefit plans to comply with the Pension Protection Act of 2006. International plans are funded in accordance with local regulations. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Oct. 03, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | ACCUMULATED OTHER COMPREHENSIVE INCOME Components of other comprehensive income (loss) consist of the following: Foreign Gain/(Loss) Employee Gain/(Loss) Total Accumulated Currency On Benefit On Derivatives Other Comprehensive (Dollars in Millions) Translation Securities Plans & Hedges Income (Loss) January 3, 2021 $ (8,938) 1 (6,957) 652 (15,242) Net change (241) (1) 700 (631) (173) October 3, 2021 $ (9,179) — (6,257) 21 (15,415) Amounts in accumulated other comprehensive income are presented net of the related tax impact. Foreign currency translation is not adjusted for income taxes where it relates to permanent investments in international subsidiaries. For additional details on comprehensive income see the Consolidated Statements of Comprehensive Income. Details on reclassifications out of Accumulated Other Comprehensive Income: Gain/(Loss) On Securities - reclassifications released to Other (income) expense, net. Employee Benefit Plans - reclassifications are included in net periodic benefit cost. See Note 6 for additional details. Gain/(Loss) On Derivatives & Hedges - reclassifications to earnings are recorded in the same account as the underlying transaction. See Note 4 for additional details. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Oct. 03, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The following is a reconciliation of basic net earnings per share to diluted net earnings per share: Fiscal Third Quarter Ended Fiscal Nine Months Ended (Shares in Millions) October 3, 2021 September 27, 2020 October 3, 2021 September 27, 2020 Basic net earnings per share $ 1.39 1.35 6.13 4.93 Average shares outstanding — basic 2,632.6 2,632.5 2,632.2 2,633.0 Potential shares exercisable under stock option plans 138.3 115.7 139.1 120.2 Less: shares which could be repurchased under treasury stock method (96.0) (78.9) (96.7) (82.4) Average shares outstanding — diluted 2,674.9 2,669.3 2,674.6 2,670.8 Diluted net earnings per share $ 1.37 1.33 6.04 4.86 The diluted net earnings per share calculation for the fiscal third quarter ended October 3, 2021 included all shares related to stock options, as the exercise price of all options was less than the average market value of the Company’s stock. The diluted net earnings per share calculation for the fiscal third quarter ended September 27, 2020 excluded 20 million shares related to stock options, as the exercise price of these options was greater than their average market value. The diluted net earnings per share calculation for the fiscal nine months ended October 3, 2021 included all shares related to stock options, as the exercise price of all options was less than the average market value of the Company's stock. The diluted net earnings per share calculation for the fiscal nine months ended September 27, 2020 excluded 17 million shares related to stock options, as the exercise price of these options was greater than their average market value. |
Segments of Business and Geogra
Segments of Business and Geographic Areas | 9 Months Ended |
Oct. 03, 2021 | |
Segment Reporting [Abstract] | |
Segments of Business and Geographic Areas | SEGMENTS OF BUSINESS AND GEOGRAPHIC AREAS SALES BY SEGMENT OF BUSINESS Fiscal Third Quarter Ended Fiscal Nine Months Ended (Dollars in Millions) October 3, September 27, Percent October 3, September 27, Percent Change Consumer Health OTC U.S. $ 686 601 14.0 % $ 1,960 1,917 2.2 % International 686 541 26.9 1,894 1,722 10.0 Worldwide 1,372 1,142 20.1 3,854 3,639 5.9 Skin Health/Beauty U.S. 569 572 (0.5) 1,862 1,767 5.4 International 555 577 (3.8) 1,595 1,506 5.9 Worldwide 1,124 1,149 (2.2) 3,457 3,273 5.6 Oral Care U.S. 150 164 (8.4) 478 510 (6.2) International 248 248 0.1 762 694 9.9 Worldwide 398 412 (3.3) 1,240 1,204 3.0 Baby Care U.S. 95 91 5.2 288 279 3.3 International 296 302 (2.0) 879 831 5.8 Worldwide 391 393 (0.3) 1,167 1,110 5.2 Women's Health U.S. 3 3 20.1 9 10 (5.7) International 229 227 0.5 675 654 3.1 Worldwide 232 230 0.8 684 664 3.0 Wound Care/Other U.S. 122 125 (2.6) 390 370 5.3 International 61 64 (5.2) 186 175 5.8 Worldwide 182 189 (3.5) 575 545 5.4 TOTAL Consumer Health U.S. 1,625 1,556 4.5 4,987 4,853 2.8 International 2,075 1,958 5.9 5,991 5,582 7.3 Worldwide 3,700 3,514 5.3 10,978 10,435 5.2 PHARMACEUTICAL Immunology U.S. 2,771 2,558 8.3 7,932 7,330 8.2 International 1,480 1,230 20.3 4,464 3,619 23.3 Worldwide 4,250 3,789 12.2 12,395 10,950 13.2 REMICADE ® U.S. 480 634 (24.3) 1,508 1,852 (18.6) U.S. Exports 47 78 (40.2) 197 321 (38.7) International 234 209 12.2 721 673 7.1 Worldwide 761 921 (17.4) 2,426 2,846 (14.8) SIMPONI / SIMPONI ARIA ® U.S. 295 312 (5.3) 840 840 0.0 International 276 280 (1.1) 877 827 6.1 Worldwide 571 592 (3.3) 1,717 1,667 3.0 STELARA ® U.S. 1,569 1,313 19.5 4,396 3,668 19.9 International 809 634 27.7 2,404 1,795 33.9 Worldwide 2,378 1,947 22.2 6,800 5,463 24.5 TREMFYA ® U.S. 376 222 69.7 975 650 50.1 International 161 105 52.5 459 316 45.4 Worldwide 537 327 64.1 1,434 965 48.5 OTHER IMMUNOLOGY U.S. 3 — * 15 — * International 0 3 * 3 9 (68.6) Worldwide 3 3 (26.4) 18 9 91.6 Infectious Diseases U.S. 679 413 64.3 1,635 1,265 29.2 International 709 451 57.2 1,788 1,397 28.0 Worldwide 1,389 864 60.6 3,424 2,662 28.6 COVID-19 VACCINE U.S. 270 — * 421 — * International 233 — * 346 — * Worldwide 502 — * 766 — * EDURANT ® / rilpivirine U.S. 12 11 8.4 31 33 (4.8) International 247 226 9.7 733 684 7.2 Worldwide 259 236 9.6 764 716 6.7 PREZISTA ® / PREZCOBIX ® / REZOLSTA ® / SYMTUZA ® U.S. 380 379 0.4 1,128 1,154 (2.2) International 137 147 (7.1) 440 461 (4.6) Worldwide 517 526 (1.7) 1,568 1,615 (2.9) OTHER INFECTIOUS DISEASES U.S. 18 24 (26.0) 55 79 (29.6) International 93 78 18.3 270 252 6.9 Worldwide 110 102 7.8 325 331 (1.8) Neuroscience U.S. 835 759 10.2 2,448 2,285 7.2 International 854 846 0.8 2,770 2,565 8.0 Worldwide 1,689 1,605 5.3 5,218 4,850 7.6 CONCERTA ® / methylphenidate U.S. 35 43 (19.5) 117 150 (22.1) International 122 107 14.2 372 319 16.4 Worldwide 157 149 4.5 489 469 4.1 INVEGA SUSTENNA ® / XEPLION ® / INVEGA TRINZA ® / TREVICTA ® U.S. 648 585 11.0 1,882 1,704 10.4 International 355 341 4.3 1,111 983 13.0 Worldwide 1,004 926 8.5 2,994 2,688 11.4 RISPERDAL CONSTA ® U.S. 71 70 1.3 210 220 (4.7) International 69 81 (16.7) 242 254 (5.1) Worldwide 140 152 (8.4) 452 475 (4.9) OTHER NEUROSCIENCE U.S. 81 60 34.7 239 210 13.9 International 307 317 (2.9) 1,045 1,008 3.7 Worldwide 388 377 3.1 1,284 1,218 5.5 Oncology U.S. 1,525 1,267 20.3 4,364 3,623 20.4 International 2,140 1,862 14.9 6,406 5,310 20.6 Worldwide 3,665 3,129 17.1 10,770 8,933 20.6 DARZALEX ® U.S. 841 585 43.7 2,302 1,540 49.5 International 739 514 43.7 2,076 1,397 48.6 Worldwide 1,580 1,099 43.7 4,378 2,937 49.1 ERLEADA ® U.S. 214 152 40.5 578 407 41.8 International 130 55 * 329 112 * Worldwide 344 206 66.7 907 519 74.7 IMBRUVICA ® U.S. 413 450 (8.3) 1,311 1,329 (1.3) International 654 581 12.6 1,996 1,682 18.7 Worldwide 1,066 1,031 3.5 3,307 3,011 9.9 ZYTIGA ® / abiraterone acetate U.S. 25 58 (57.0) 96 284 (66.2) International 523 532 (1.8) 1,653 1,564 5.7 Worldwide 548 590 (7.2) 1,749 1,848 (5.4) OTHER ONCOLOGY (1) U.S. 32 21 49.6 76 63 21.0 International 94 181 (48.0) 352 556 (36.6) Worldwide 126 203 (37.6) 428 619 (30.7) Pulmonary Hypertension U.S. 610 510 19.7 1,778 1,541 15.4 International 258 239 7.9 821 742 10.7 Worldwide 868 749 15.9 2,599 2,283 13.9 OPSUMIT ® U.S. 299 244 22.8 861 729 18.2 International 159 148 7.4 510 458 11.3 Worldwide 458 392 17.0 1,371 1,187 15.5 UPTRAVI ® U.S. 265 226 17.3 792 692 14.6 International 44 34 30.4 135 100 34.6 Worldwide 309 260 19.0 927 792 17.1 OTHER PULMONARY HYPERTENSION U.S. 47 40 14.4 125 121 2.8 International 54 57 (4.4) 176 183 (3.7) Worldwide 101 97 3.4 301 304 (1.1) Cardiovascular / Metabolism / Other U.S. 800 931 (14.0) 2,379 2,574 (7.6) International 333 351 (5.1) 1,007 1,052 (4.2) Worldwide 1,133 1,281 (11.5) 3,386 3,625 (6.6) XARELTO ® U.S. 636 630 0.8 1,794 1,716 4.5 International — — — — — — Worldwide 636 630 0.8 1,794 1,716 4.5 INVOKANA ® / INVOKAMET ® U.S. 66 156 (57.4) 249 405 (38.4) International 67 68 (1.0) 194 173 11.9 Worldwide 133 224 (40.3) 443 578 (23.4) PROCRIT ® / EPREX ® U.S. 47 69 (30.9) 168 215 (21.7) International 65 63 3.1 198 208 (4.7) Worldwide 112 132 (14.6) 366 423 (13.4) OTHER U.S. 51 75 (32.6) 168 238 (29.3) International 200 219 (8.7) 615 670 (8.3) Worldwide 251 294 (14.8) 783 908 (13.8) TOTAL PHARMACEUTICAL U.S. 7,221 6,438 12.2 20,536 18,619 10.3 International 5,773 4,980 15.9 17,256 14,685 17.5 Worldwide 12,994 11,418 13.8 37,792 33,304 13.5 MEDICAL DEVICES Interventional Solutions U.S. 444 399 11.1 1,353 1,019 32.7 International 513 437 17.7 1,599 1,134 41.1 Worldwide 957 836 14.5 2,952 2,153 37.1 Orthopaedics U.S. 1,249 1,308 (4.5) 3,821 3,427 11.5 International 843 774 8.8 2,611 2,145 21.7 Worldwide 2,093 2,083 0.5 6,433 5,572 15.4 HIPS U.S. 210 221 (5.3) 654 564 15.9 International 146 124 18.8 451 344 31.3 Worldwide 356 345 3.3 1,105 908 21.8 KNEES U.S. 184 205 (9.8) 579 527 10.0 International 131 102 28.1 403 298 35.4 Worldwide 316 308 2.8 983 825 19.2 TRAUMA U.S. 455 433 5.3 1,352 1,194 13.3 International 260 253 2.4 805 698 15.2 Worldwide 715 685 4.2 2,157 1,892 14.0 SPINE, SPORTS & OTHER U.S. 400 449 (11.1) 1,236 1,142 8.2 International 306 295 3.5 952 805 18.2 Worldwide 705 745 (5.3) 2,187 1,947 12.3 Surgery U.S. 948 913 3.9 2,881 2,247 28.2 International 1,457 1,239 17.6 4,418 3,556 24.2 Worldwide 2,405 2,152 11.8 7,299 5,803 25.8 ADVANCED U.S. 440 421 4.6 1,304 1,079 20.9 International 705 579 21.8 2,126 1,644 29.3 Worldwide 1,144 1,000 14.6 3,430 2,723 26.0 GENERAL U.S. 508 492 3.3 1,577 1,168 35.0 International 752 660 13.9 2,292 1,912 19.9 Worldwide 1,261 1,152 9.4 3,869 3,080 25.6 Vision U.S. 475 473 0.6 1,414 1,160 21.9 International 714 608 17.4 2,103 1,683 25.0 Worldwide 1,189 1,081 10.1 3,517 2,843 23.7 CONTACT LENSES / OTHER U.S. 359 375 (4.3) 1,082 924 17.0 International 522 455 14.9 1,525 1,274 19.8 Worldwide 882 830 6.2 2,607 2,198 18.6 SURGICAL U.S. 117 98 19.6 333 236 41.1 International 191 153 24.7 577 409 41.1 Worldwide 308 251 22.7 910 645 41.1 TOTAL MEDICAL DEVICES U.S. 3,117 3,092 0.8 9,470 7,852 20.6 International 3,527 3,058 15.4 10,731 8,518 26.0 Worldwide 6,644 6,150 8.0 20,201 16,370 23.4 WORLDWIDE U.S. 11,963 11,086 7.9 34,993 31,324 11.7 International 11,375 9,996 13.8 33,978 28,785 18.0 Worldwide $ 23,338 21,082 10.7 % $ 68,971 60,109 14.7 % *Percentage greater than 100% or not meaningful (1) Inclusive of VELCADE ® which was previously disclosed separately EARNINGS BEFORE PROVISION FOR TAXES BY SEGMENT Fiscal Third Quarter Ended Fiscal Nine Months Ended (Dollars in Millions) October 3, September 27, Percent October 3, September 27, Percent Consumer Health (1) $ (636) 191 * $ 956 993 (3.7)% Pharmaceutical (2) 4,259 3,439 23.8 13,838 11,787 17.4 Medical Devices (3) 423 1,010 (58.1) 3,798 2,681 41.7 Segment earnings before provision for taxes 4,046 4,640 (12.8) 18,592 15,461 20.3 Less: Expense not allocated to segments (4) 197 239 652 611 Worldwide income before tax $ 3,849 4,401 (12.5)% $ 17,940 14,850 20.8% *Percentage greater than 100% or not meaningful (1) Consumer Health • Includes intangible amortization expense of $0.1 billion in both the fiscal third quarter of 2021 and 2020 and $0.3 billion in both the fiscal nine months of 2021 and 2020. • Includes litigation expense of $1.4 billion and $0.5 billion in the fiscal third quarter of 2021 and 2020, respectively. Includes litigation expense of $1.5 billion and $1.2 billion in the fiscal nine months of 2021 and 2020, respectively. Litigation expense in both periods is primarily related to talc. • Includes a restructuring related charge of $0.1 billion in both the fiscal nine months of 2021 and 2020. (2) Pharmaceutical • Includes divestiture gains of $0.6 billion in the fiscal nine months of 2021 related to two brands outside the U.S. • Includes intangible amortization expense of $0.8 billion in both the fiscal third quarter of 2021 and 2020. Includes intangible amortization expense of $2.5 billion and $2.4 billion in the fiscal nine months of 2021 and 2020, respectively. • Includes net litigation expense of $0.8 billion and $1.0 billion in the fiscal third quarter of 2021 and 2020, respectively. Includes net litigation expense of $0.7 billion and $1.0 billion in the fiscal nine months of 2021 and 2020, respectively. Litigation expense in 2021 is primarily related to Risperdal. Litigation expense in 2020 is related to the opioid settlement. • Includes a gain on securities of $0.1 billion in the fiscal third quarter of 2021 and $0.2 billion in both the fiscal nine months of 2021 and 2020, respectively. • Includes a restructuring related charge of $0.1 billion in both the fiscal nine months of 2021 and 2020, respectively. In fiscal 2020 and 2021, the Company entered into a series of contract manufacturing arrangements for vaccine production with third party contract manufacturing organizations. These arrangements provide the Company with future supplemental commercial capacity for vaccine production and potentially transferable rights to such production if capacity is not required. Amounts paid for services to be delivered and contractually obligated to be paid to these contract manufacturing organizations of approximately $1.2 billion are reflected in the prepaid expenses and other, other assets, accrued liabilities and other liabilities accounts in the Company's consolidated balance sheet upon execution of each agreement. Additionally, the Company has entered into certain vaccine development cost sharing arrangements with government related organizations. (3) Medical Devices • Includes a contingent consideration reversal of $0.2 billion in the fiscal third quarter of 2020 and $1.1 billion in the fiscal nine months of 2020 related to the timing of certain developmental milestones associated with the Auris Health acquisition. • Includes a restructuring related charge of $0.1 billion in both the fiscal third quarter of 2021 and 2020, respectively. Includes a restructuring related charge of $0.2 billion in both the fiscal nine months of 2021 and 2020, respectively. • Includes intangible amortization expense of $0.3 billion and $0.2 billion in the fiscal third quarter of 2021 and 2020, respectively. Includes intangible amortization expense of $0.8 billion and $0.7 billion in the fiscal nine months of 2021 and 2020, respectively. • Includes a gain on securities of $0.1 billion in the fiscal nine months of 2021. • Includes an in-process research and development expense of $0.9 billion related to the general surgery offering in digital robotics (Ottava) acquired with the Auris Health acquisition in 2019 in both the fiscal third quarter and fiscal nine months of 2021. See Note 3 to the Consolidated Financial Statements for more details. (4) Amounts not allocated to segments include interest income/expense and general corporate income/expense. SALES BY GEOGRAPHIC AREA Fiscal Third Quarter Ended Fiscal Nine Months Ended (Dollars in Millions) October 3, 2021 September 27, 2020 Percent October 3, 2021 September 27, 2020 Percent Change United States $ 11,963 11,086 7.9 % $ 34,993 31,324 11.7 % Europe 5,587 4,819 15.9 16,669 13,709 21.6 Western Hemisphere, excluding U.S. 1,500 1,296 15.7 4,291 3,931 9.2 Asia-Pacific, Africa 4,288 3,881 10.5 13,018 11,145 16.8 Total $ 23,338 21,082 10.7 % $ 68,971 60,109 14.7 % |
Acquisitions and Divestitures
Acquisitions and Divestitures | 9 Months Ended |
Oct. 03, 2021 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | ACQUISITIONS AND DIVESTITURESDuring the first fiscal quarter of 2021, in separate transactions, the Company divested two brands outside the U.S. within the Pharmaceutical segment. The Company recognized a pre-tax gain recorded in Other (income) expense, net, of approximately $0.6 billion. During the fiscal first quarter of 2020, the Company completed the acquisition of all rights to the investigational compound bermekimab, which has multiple dermatological indications, along with certain employees from XBiotech Inc., for a purchase price of $0.8 billion. The fair value of the acquisition was allocated primarily to non-amortizable intangible assets, primarily IPR&D, for $0.8 billion. XBiotech may be eligible to receive additional payments upon the receipt of certain commercialization authorizations. The transaction was accounted for as a business combination and included in the Pharmaceutical segment. Additionally, the Company completed the acquisition of all outstanding shares in Verb Surgical Inc., a company with world-class robotics and data science capabilities, including those shares previously held by Verily. The transaction was accounted for as a business combination and included in the Medical Devices segment. The fair value of the acquisition was allocated primarily to non-amortizable intangible assets, primarily IPR&D, for $0.4 billion, goodwill for $0.2 billion, other assets of $0.2 billion and liabilities assumed of $0.3 billion. The fair value of the Company's previously held equity investment in Verb Surgical Inc. was $0.4 billion. |
Legal Proceedings
Legal Proceedings | 9 Months Ended |
Oct. 03, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings | LEGAL PROCEEDINGS Johnson & Johnson and certain of its subsidiaries are involved in various lawsuits and claims regarding product liability; intellectual property; commercial; supplier indemnification and other matters; governmental investigations; and other legal proceedings that arise from time to time in the ordinary course of their business. Due to the ongoing impacts of the COVID-19 pandemic, certain trials have been rescheduled or delayed. The Company continues to monitor its legal proceedings as the situation evolves and in person trials resume. The Company records accruals for loss contingencies associated with these legal matters when it is probable that a liability will be incurred, and the amount of the loss can be reasonably estimated. As of October 3, 2021, the Company has determined that the liabilities associated with certain litigation matters are probable and can be reasonably estimated. The Company has accrued for these matters and will continue to monitor each related legal issue and adjust accruals as might be warranted based on new information and further developments in accordance with ASC 450-20-25. For these and other litigation and regulatory matters discussed below for which a loss is probable or reasonably possible, the Company is unable to estimate the possible loss or range of loss beyond the amounts accrued. Amounts accrued for legal contingencies often result from a complex series of judgments about future events and uncertainties that rely heavily on estimates and assumptions including timing of related payments. The ability to make such estimates and judgments can be affected by various factors including, among other things, whether damages sought in the proceedings are unsubstantiated or indeterminate; scientific and legal discovery has not commenced or is not complete; proceedings are in early stages; matters present legal uncertainties; there are significant facts in dispute; procedural or jurisdictional issues; the uncertainty and unpredictability of the number of potential claims; ability to achieve comprehensive multi-party settlements; complexity of related cross-claims and counterclaims; and/or there are numerous parties involved. To the extent adverse awards, judgments or verdicts have been rendered against the Company, the Company does not record an accrual until a loss is determined to be probable and can be reasonably estimated. In the Company's opinion, based on its examination of these matters, its experience to date and discussions with counsel, the ultimate outcome of legal proceedings, net of liabilities accrued in the Company's balance sheet, is not expected to have a material adverse effect on the Company's financial position. However, the resolution of, or increase in accruals for, one or more of these matters in any reporting period may have a material adverse effect on the Company's results of operations and cash flows for that period. PRODUCT LIABILITY Johnson & Johnson and certain of its subsidiaries are involved in numerous product liability claims and lawsuits involving multiple products. Claimants in these cases seek substantial compensatory and, where available, punitive damages. While the Company believes it has substantial defenses, it is not feasible to predict the ultimate outcome of litigation. From time to time, even if it has substantial defenses, the Company considers isolated settlements based on a variety of circumstances. The Company has established accruals for product liability claims and lawsuits in compliance with ASC 450-20 based on currently available information, which in some cases may be limited. The Company accrues an estimate of the legal defense costs needed to defend each matter when those costs are probable and can be reasonably estimated. For certain of these matters, the Company has accrued additional amounts such as estimated costs associated with settlements, damages and other losses. Product liability accruals can represent projected product liability for thousands of claims around the world, each in different litigation environments and with different fact patterns. Changes to the accruals may be required in the future as additional information becomes available. The most significant of these cases include: the DePuy ASR™ XL Acetabular System and DePuy ASR™ Hip Resurfacing System; the PINNACLE ® Acetabular Cup System; pelvic meshes; RISPERDAL ® ; XARELTO ® ; body powders containing talc, primarily JOHNSONS ® Baby Powder; INVOKANA ® ; and ETHICON PHYSIOMESH ® Flexible Composite Mesh. As of October 3, 2021, in the United States there were approximately 300 plaintiffs with direct claims in pending lawsuits regarding injuries allegedly due to the DePuy ASR™ XL Acetabular System and DePuy ASR™ Hip Resurfacing System; 5,400 with respect to the PINNACLE ® Acetabular Cup System; 10,700 with respect to pelvic meshes; 9,000 with respect to RISPERDAL ® ; 6,600 with respect to XARELTO ® ; 38,200 with respect to body powders containing talc; 100 with respect to INVOKANA ® ; and 4,700 with respect to ETHICON PHYSIOMESH ® Flexible Composite Mesh. In August 2010, DePuy Orthopaedics, Inc. (DePuy) announced a worldwide voluntary recall of its ASR ™ XL Acetabular System and DePuy ASR ™ Hip Resurfacing System used in hip replacement surgery. Claims for personal injury have been made against DePuy and Johnson & Johnson. The number of pending lawsuits is expected to fluctuate as certain lawsuits are settled or dismissed and additional lawsuits are filed. Cases filed in federal courts in the United States have been organized as a multi-district litigation in the United States District Court for the Northern District of Ohio. Litigation has also been filed in countries outside of the United States, primarily in the United Kingdom, Canada, Australia, Ireland, Germany, India and Italy. In November 2013, DePuy reached an agreement with a Court-appointed committee of lawyers representing ASR Hip System plaintiffs to establish a program to settle claims with eligible ASR Hip patients in the United States who had surgery to replace their ASR Hips, known as revision surgery, as of August 31, 2013. DePuy reached additional agreements in February 2015 and March 2017, which further extended the settlement program to include ASR Hip patients who had revision surgeries after August 31, 2013 and prior to February 15, 2017. This settlement program has resolved more than 10,000 claims, thereby bringing to resolution significant ASR Hip litigation activity in the United States. However, lawsuits in the United States remain, and the settlement program does not address litigation outside of the United States. In Australia, a class action settlement was reached that resolved the claims of the majority of ASR Hip patients in that country. In Canada, the Company has reached agreements to settle the class actions filed in that country . The Company continues to receive information with respect to potential additional costs associated with this recall on a worldwide basis. The Company has established accruals for the costs associated with the United States settlement program and DePuy ASR ™ Hip-related product liability litigation. Claims for personal injury have also been made against DePuy Orthopaedics, Inc. and Johnson & Johnson (collectively, DePuy) relating to the PINNACLE ® Acetabular Cup System used in hip replacement surgery. Product liability lawsuits continue to be filed, and the Company continues to receive information with respect to potential costs and the anticipated number of cases. Cases filed in federal courts in the United States have been organized as a multi-district litigation in the United States District Court for the Northern District of Texas. Litigation also has been filed in some state courts and in countries outside of the United States. Several adverse verdicts have been rendered against DePuy, one of which was reversed on appeal and remanded for retrial. During the first quarter of 2019, DePuy established a United States settlement program to resolve these cases. As part of the settlement program, adverse verdicts have been settled. The Company has established an accrual for product liability litigation associated with the PINNACLE ® Acetabular Cup System and the related settlement program. Claims for personal injury have been made against Ethicon, Inc. (Ethicon) and Johnson & Johnson arising out of Ethicon's pelvic mesh devices used to treat stress urinary incontinence and pelvic organ prolapse. The Company continues to receive information with respect to potential costs and additional cases. Cases filed in federal courts in the United States had been organized as a multi-district litigation (MDL) in the United States District Court for the Southern District of West Virginia. In March 2021, the MDL Court entered an order closing the MDL. The MDL Court has remanded cases for trial to the jurisdictions where the case was originally filed and additional pelvic mesh lawsuits have been filed, and remain, outside of the MDL. The Company has settled or otherwise resolved a majority of the United States cases and the estimated costs associated with these settlements and the remaining cases are reflected in the Company's accruals. In addition, class actions and individual personal injury cases or claims seeking damages for alleged injury resulting from Ethicon's pelvic mesh devices have been commenced in various countries outside of the United States, including claims and cases in the United Kingdom, the Netherlands and class actions in Israel, Australia and Canada. In November 2019, the Federal Court of Australia issued a judgment regarding its findings with respect to liability in relation to the three Lead Applicants and generally in relation to the design, manufacture, pre and post-market assessments and testing, and supply and promotion of the devices in Australia used to treat stress urinary incontinence and pelvic organ prolapse. In March 2020, the Court issued a decision and entered damages awards to the three Lead Applicants. The Company appealed the decision to the intermediate appellate court, the Full Court. The appeal was heard in February 2021 and, in March 2021, the Full Court entered a judgment dismissing the appeal. An application for special leave to the High Court of Australia was filed in April 2021, and in July 2021, the High Court agreed to hear oral argument on the application, which is scheduled to occur in November 2021. With respect to class members other than the Lead Applicants, the Federal Court will conduct an individual case assessment process that will require proof of use and causally related loss, although the form of that process has not yet been decided. The class actions in Canada were discontinued in 2020 as a result of a settlement of a group of cases and an agreement to resolve the Israeli class action was reached in May 2021, which is subject to court approval. The Company has established accruals with respect to product liability litigation associated with Ethicon's pelvic mesh products. Following a June 2016 worldwide market withdrawal of ETHICON PHYSIOMESH ® Flexible Composite Mesh, claims for personal injury have been made against Ethicon, Inc. (Ethicon) and Johnson & Johnson alleging personal injury arising out of the use of this hernia mesh device. Cases filed in federal courts in the United States have been organized as a multi-district litigation (MDL) in the United States District Court for the Northern District of Georgia. A multi-county litigation (MCL) also has been formed in New Jersey state court and assigned to Atlantic County for cases pending in New Jersey. In addition to the matters in the MDL and MCL, there are additional lawsuits pending in the United States District Court for the Southern District of Ohio, which are part of the MDL for polypropylene mesh devices manufactured by C.R. Bard, Inc., one multi-plaintiff lawsuit pending in Oklahoma state court and lawsuits pending outside the United States. In May 2021, Ethicon and lead counsel for the plaintiffs entered into a term sheet to resolve approximately 3,600 Physiomesh cases (covering approximately 4,300 plaintiffs) pending in the MDL and MCL at that time. A master settlement agreement was entered into in September 2021. All deadlines and trial settings in those proceedings are currently stayed pending the completion of the settlement agreement. The costs associated with this proposed settlement are reflected in the Company’s accruals. Claims have also been filed against Ethicon and Johnson & Johnson alleging personal injuries arising from the PROCEED ® Mesh and PROCEED ® Ventral Patch hernia mesh products. In March 2019, the New Jersey Supreme Court entered an order consolidating these cases pending in New Jersey as an MCL in Atlantic County Superior Court. Additional cases have been filed in various federal and state courts in the US, and in jurisdictions outside the US. Discovery is underway in the MCL proceedings. Ethicon and Johnson & Johnson also have been subject to claims for personal injuries arising from the PROLENE™ Polypropylene Hernia System (PHS). In January 2020, New Jersey Supreme Court created an MCL in Atlantic County Superior Court to handle such cases. Cases involving this product have also been filed in other federal and state courts in the United States. The Company has established accruals with respect to product liability litigation associated with ETHICON PHYSIOMESH ® Flexible Composite Mesh, PROCEED ® Mesh and PROCEED ® Ventral Patch, and PROLENE™ Polypropylene Hernia System products. Claims for personal injury have been made against Janssen Pharmaceuticals, Inc. and Johnson & Johnson arising out of the use of RISPERDAL ® , and related compounds, indicated for the treatment of schizophrenia, acute manic or mixed episodes associated with bipolar I disorder and irritability associated with autism. Lawsuits primarily have been filed in state courts in Pennsylvania, California, and Missouri. Other actions are pending in various courts in the United States and Canada. Product liability lawsuits continue to be filed, and the Company continues to receive information with respect to potential costs and the anticipated number of cases. The Company has successfully defended a number of these cases but there have been verdicts against the Company, including a verdict in October 2019 of $8.0 billion of punitive damages related to one plaintiff, which the trial judge reduced to $6.8 million in January 2020. In September 2021, the Company entered into a settlement in principle with the counsel representing plaintiffs in this matter and in substantially all of the outstanding cases in the United States. The costs associated with this and other settlements are reflected in the Company's accruals. Claims for personal injury arising out of the use of XARELTO ® , an oral anticoagulant, have been made against Janssen Pharmaceuticals, Inc. (JPI); Johnson & Johnson; and JPI’s collaboration partner for XARELTO ® , Bayer AG and certain of its affiliates. Cases filed in federal courts in the United States have been organized as a multi-district litigation in the United States District Court for the Eastern District of Louisiana. In addition, cases have been filed in state courts across the United States. Many of these cases were consolidated into a state mass tort litigation in Philadelphia, Pennsylvania and in a coordinated proceeding in Los Angeles, California. Class action lawsuits also have been filed in Canada. In March 2019, JPI and Johnson & Johnson announced an agreement in principle to settle the XARELTO ® cases in the United States; the settlement agreement was executed in May 2019, the settlement became final in December 2019, and the settlement was funded in January 2020. This resolved the majority of cases pending in the United States. The Company has established accruals for its costs associated with the United States settlement program and XARELTO ® related product liability litigation. A significant number of personal injury claims alleging that talc causes cancer were made against Johnson & Johnson Consumer Inc. and Johnson & Johnson arising out of the use of body powders containing talc, primarily JOHNSON’S ® Baby Powder. The number of these personal injury lawsuits, filed in state and federal courts in the United States as well as outside of the United States, continued to increase through, and including, October 2021. In talc cases that previously have gone to trial, the Company has obtained a number of defense verdicts, but there also have been verdicts against the Company, many of which have been reversed on appeal. In June 2020, the Missouri Court of Appeals reversed in part and affirmed in part a July 2018 verdict of $4.7 billion in Ingham v. Johnson & Johnson, et al., No. ED 207476 (Mo. App.), reducing the overall award to $2.1 billion. An application for transfer of the case to the Missouri Supreme Court was subsequently denied and in June 2021, a petition for certiorari, seeking a review of the Ingham decision by the United States Supreme Court was denied. In June 2021, the Company paid the award, which, including interest, totaled approximately $2.5 billion. The facts and circumstances, including the terms of the award, were unique to the Ingham decision and not representative of other claims brought against the Company. The Company continues to believe that it has strong legal grounds to contest the other talc verdicts that it has appealed. Notwithstanding the Company’s confidence in the safety of its talc products, in certain circumstances the Company has and may settle cases. In October 2021, Johnson & Johnson Consumer Inc. (Old JJCI) implemented a corporate restructuring (the 2021 Corporate Restructuring). As a result of that restructuring, Old JJCI ceased to exist and three new entities were created: (a) LTL Management LLC, a North Carolina limited liability company (LTL or Debtor), (b) Royalty A&M LLC, a North Carolina limited liability company and a direct subsidiary of LTL (RAM); and (c) the Debtor's direct parent, Johnson & Johnson Consumer Inc., a New Jersey company (New JJCI). The Debtor received certain of Old JJCI's assets and became solely responsible for the talc-related liabilities of Old JJCI, including all liabilities related in any way to injury or damage, or alleged injury or damage, sustained or incurred in the purchase or use of, or exposure to, talc, including talc contained in any product, or to the risk of, or responsibility for, any such damage or injury, except for any liabilities for which the exclusive remedy is provided under a workers’ compensation statute or act (the Talc-Related Liabilities). In October 2021, notwithstanding the Company’s confidence in the safety of its talc products, the Debtor filed a voluntary petition with the United States Bankruptcy Court for the Western District of North Carolina, Charlotte Division, seeking relief under chapter 11 of the Bankruptcy Code (the LTL Bankruptcy Filing). As a result of the LTL Bankruptcy Filing, the Court entered a temporary restraining order staying all litigation against LTL and Old JJCI. Further hearings on whether a permanent restraining order staying all litigation against those entities, as well other entities, such as Johnson & Johnson, its affiliates, and certain other third parties, are scheduled in November 2021. The Company has agreed to provide funding to LTL for the payment of amounts the Bankruptcy Court determines are owed by LTL through the establishment of a $2 billion trust in furtherance of this purpose. The Company has established a reserve for approximately $2 billion in connection with the aforementioned trust, resulting in an incremental $1.4 billion litigation charge. Subsequent to the fiscal third quarter, the Company has de-consolidated LTL as a result of the bankruptcy filing. The impact of the de-consolidation is not material to the Company. In February 2019, the Company’s talc supplier, Imerys Talc America, Inc. and two of its affiliates, Imerys Talc Vermont, Inc. and Imerys Talc Canada, Inc. (collectively, Imerys) filed a voluntary chapter 11 petition under chapter 11 of title 11 of the United States Code (the Bankruptcy Code) in the United States Bankruptcy Court for the District of Delaware (Imerys Bankruptcy). The Imerys Bankruptcy relates to Imerys’s potential liability for personal injury from exposure to talcum powder sold by Imerys (Talc Claims). In its bankruptcy, Imerys alleges it has claims against the Company for indemnification and rights to joint insurance proceeds. During the bankruptcy, the Company proposed to resolve Imerys's (and the Company’s) obligations arising out of Talc Claims involving the Company’s products by agreeing to assume the defense of litigation of all such Talc Claims, waiving the Company’s indemnification claims against Imerys, and lifting the automatic stay to enable the Talc Claims to proceed outside the bankruptcy forum with the Company agreeing to settle or pay any judgment against Imerys. Imerys rejected that proposal. In May 2020, Imerys, its parent Imerys S.A., the Tort Claimants’ Committee (TCC), and the Future Claimants’ Representative (FCR) (collectively, the Plan Proponents) filed their Plan of Reorganization (the Plan) and the Disclosure Statement related thereto. The Plan Proponents have since filed numerous amendments to the Plan and Disclosure Statement. A hearing on the Plan Proponent’s Disclosure Statement was held in January 2021, and the Court entered an order approving the Disclosure Statement, allowing Imerys to proceed with soliciting votes on the Plan. In March 2021, the Company voted to reject the Plan and opted out of the consensual releases in the Plan. In April 2021, the Plan Proponents announced the Plan had received the requisite number of accepting votes to confirm the Plan. In October 2021, the Bankruptcy Court issued a ruling deeming almost 16,000 votes in favor of the Plan as withdrawn, based upon evidence that no due diligence had been done by the plaintiff’s counsel to ascertain whether the votes were cast on behalf of individuals who used the Company’s products. The Bankruptcy Court also ruled that more than 1,500 votes cast by another firm should count as rejecting instead of accepting. In October 2021, Imerys filed a notice on the docket cancelling the confirmation hearing on its Plan that was scheduled to begin in November 2021. In July 2021, Imerys commenced an adversary proceeding against the Company in the Imerys Bankruptcy (the Imerys adversary proceeding). The Imerys adversary proceeding sought, among other things, certain declarations with respect to the indemnification obligations allegedly owed by the Company to Imerys. The TCC and FCR simultaneously filed a motion for temporary restraining order and preliminary injunction seeking to enjoin the Company from undergoing a corporate restructuring that would separate the Company’s talc liabilities from its other assets. The bankruptcy court denied the motion. The Company thereafter filed a motion to dismiss the adversary proceeding. The Bankruptcy Court has not yet decided the motion to dismiss. In October 2021, the Company filed a Notice of Bankruptcy Filing and Stay of Proceedings clarifying that the automatic stay arising upon the LTL Bankruptcy Filing should apply to the Imerys adversary proceeding . In June 2020, Cyprus Mines Corporation and its parent (together, Cyprus), which had owned certain Imerys talc mines, filed an adversary proceeding against the Company and Imerys in the Imerys Bankruptcy seeking a declaration of indemnity rights under certain contractual agreements (the Cyprus adversary proceeding). The Company denies such indemnification is owed, and filed a motion to dismiss the adversary complaint. In February 2021, Cyprus filed a voluntary petition for relief under chapter 11 of the Bankruptcy Code and filed its Disclosure Statement and Plan. The Plan contemplates a settlement with Imerys and talc claimants where Cyprus would make a monetary contribution to a trust established under the Imerys Plan in exchange for an injunction against Talc Claims asserted against it. Cyprus has not yet sought approval of its Disclosure Statement and Plan. In October 2021, the Company filed a Notice of Bankruptcy Filing and Stay of Proceedings clarifying that the automatic stay arising upon the LTL Bankruptcy Filing should apply to the Cyprus adversary proceeding. In February 2021, several of the Company’s insurers involved in coverage litigation in New Jersey State Court (the Coverage Action) filed a motion in the Imerys Bankruptcy Court proceeding seeking a determination that the automatic stay does not apply to the Coverage Action and, in the alternative, seeking relief from the automatic stay to allow them to continue to litigate their claims in the Coverage Action. In March 2021, the Company filed a limited response and reservation of rights with respect to the motion. The Court entered an agreed order modifying the stay to allow the litigation in the Coverage Action to continue. In October 2021, LTL filed a Notice of Bankruptcy Filing and Stay of Proceedings clarifying that the automatic stay arising upon the LTL Bankruptcy Filing should apply to the Coverage Action. In February 2018, a securities class action lawsuit was filed against Johnson & Johnson and certain named officers in the United States District Court for the District of New Jersey, alleging that Johnson & Johnson violated the federal securities laws by failing to disclose alleged asbestos contamination in body powders containing talc, primarily JOHNSON'S ® Baby Powder, and that purchasers of Johnson & Johnson’s shares suffered losses as a result. Plaintiff is seeking damages. In April 2019, the Company moved to dismiss the complaint and briefing on the motion was complete as of August 2019. In December 2019, the Court denied, in part, the motion to dismiss. In March 2020, Defendants answered the complaint. In April 2021 briefing on Plaintiffs’ motion for class certification was completed. Discovery is ongoing. In June 2019, a shareholder filed a complaint initiating a summary proceeding in New Jersey state court for a books and records inspection. In August 2019, Johnson & Johnson responded to the books and records complaint and filed a cross motion to dismiss. In September 2019, Plaintiff replied and the Court heard oral argument. The Court has not yet ruled in the books and records action. In October 2019, December 2019, and January 2020, four shareholders filed four separate derivative lawsuits against Johnson & Johnson as the nominal defendant and its current directors and certain officers as defendants in the United States District Court for the District of New Jersey, alleging a breach of fiduciary duties related to the alleged asbestos contamination in body powders containing talc, primarily JOHNSON’S ® Baby Powder, and that Johnson & Johnson has suffered damages as a result of those alleged breaches. In February 2020, the four cases were consolidated into a single action under the caption In re Johnson & Johnson Talc Stockholder Derivative Litigation . In July 2020, a report was delivered to the Company’s Board of Directors by independent counsel retained by the Board to investigate the allegations in the derivative lawsuits and in a series of shareholder letters that the Board received raising similar issues and demanding that suit be brought against certain Directors. Four of the shareholders who sent demands are plaintiffs in th e In re Johnson & Johnson Talc Stockholder Derivative Litigation . The independent counsel recommended that the Company reject the shareholder demands and take the steps that are necessary or appropriate to secure dismissal of the derivative lawsuits. The Board unanimously adopted the recommendations of the independent counsel’s report. In October 2020, the shareholders filed a consolidated complaint, and in January 2021, Johnson & Johnson moved to dismiss the consolidated complaint. In March 2021, Plaintiffs filed a motion for discovery. The Court temporarily terminated Johnson & Johnson’s motion to dismiss pending a decision on Plaintiff’s motion for discovery. In October 2021, the Court requested supplemental briefing on Plaintiff’s motion for discovery. In January 2019, two ERISA class action lawsuits were filed by participants in the Johnson & Johnson Savings Plan against Johnson & Johnson, its Pension and Benefits Committee, and certain named officers in the United States District Court for the District of New Jersey, alleging that the defendants breached their fiduciary duties by offering Johnson & Johnson stock as a Johnson & Johnson Savings Plan investment option when it was imprudent to do so because of failures to disclose alleged asbestos contamination in body powders containing talc, primarily JOHNSON’S ® Baby Powder. Plaintiffs are seeking damages and injunctive relief. In September 2019, Defendants filed a motion to dismiss. In April 2020, the Court granted Defendants’ motion but granted leave to amend. In June 2020, Plaintiffs filed an amended complaint, and in July 2020, Defendants moved to dismiss the amended complaint. As of October 2020, briefing on Defendants’ motion was complete. In February 2021, the Court granted Defendants’ motion, and granted Plaintiffs leave to amend. In April 2021, Plaintiffs informed the Court that they did not intend to file an amended complaint, and the Court dismissed the case with prejudice. In May 2021, Plaintiffs filed a notice of appeal with the Third Circuit. In July 2021, Plaintiffs filed their opening brief in the Third Circuit and in September 2021, Defendants filed their response brief. In October 2021, Plaintiffs filed their reply brief. A lawsuit was brought against the Company in the Superior Court of California for the County of San Diego alleging violations of California’s Consumer Legal Remedies Act (CLRA) relating to JOHNSON’S ® Baby Powder. In that lawsuit, the plaintiffs allege that Johnson & Johnson violated the CLRA by failing to provide required Proposition 65 warnings. In July 2019, the Company filed a notice of removal to the United States District Court for the Southern District of California and plaintiffs filed a second amended complaint shortly thereafter. In October 2019, the Company moved to dismiss the second amended complaint for failure to state a claim upon which relief may be granted. In response to those motions, plaintiffs filed a third amended complaint. In December 2019, the Company moved to dismiss the third amended complaint for failure to state a claim upon which relief may be granted. In April 2020, the Court granted the motion to dismiss but granted leave to amend. In May 2020, plaintiffs filed a Fourth Amended Complaint but indicated that they would be filing a motion for leave to file a fifth amended complaint. Plaintiffs filed a Fifth Amended Complaint in August 2020. The Company moved to dismiss the Fifth Amended Complaint for failure to state a claim upon which relief may be granted. In January 2021, the Court issued an Order and opinion ruling in the Company’s favor and granting the motion to dismiss with prejudice. In February 2021, Plaintiffs filed a Notice of Appeal with the Ninth Circuit. In October 2021, a Notice of Suggestion of Bankruptcy was filed with the Ninth Circuit. In addition, the Company has received preliminary inquiries and subpoenas to produce documents regarding talc matters from Senator Murray, a member of the Senate Committee on Health, Education, Labor and Pensions, the Department of Justice and the U.S. Congressional Subcommittee on Economic and Consumer Policy. The Company produced documents as required in response and will continue to cooperate with government inquiries. Claims for personal injury have been made against a number of Johnson & Johnson companies, including Janssen Pharmaceuticals, Inc. and Johnson & Johnson, arising out of the use of INVOKANA ® , a prescription medication indicated to improve glycemic control in adults with Type 2 diabetes. In December 2016, lawsuits filed in federal courts in the United States were organized as a multi-district litigation in the United States District Court for the District of New Jersey. Cases have also been filed in state courts. Class action lawsuits have been filed in Canada. Product liability lawsuits continue to be filed, and the Company continues to receive information with respect to potential costs and the anticipated number of cases. The Company has settled or otherwise resolved many of the |
Restructuring
Restructuring | 9 Months Ended |
Oct. 03, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | RESTRUCTURING In the fiscal second quarter of 2018 the Company announced plans to implement a series of actions across its Global Supply Chain that are intended to focus resources and increase investments in the critical capabilities, technologies and solutions necessary to manufacture and supply its product portfolio, enhance agility and drive growth. The Global Supply Chain actions will include expanding the use of strategic collaborations and bolstering initiatives to reduce complexity, improve cost-competitiveness, enhance capabilities and optimize the Supply Chain network. In the fiscal third quarter of 2021, the Company recorded a pre-tax charge of $121 million, which is included on the following lines of the Consolidated Statement of Earnings, $60 million in restructuring, $18 million in cost of products sold and $43 million in other (income) expense, net. In the fiscal nine months of 2021, the Company recorded a pre-tax charge of $333 million, which is included on the following lines of the Consolidated Statement of Earnings, $169 million in restructuring, $65 million in cost of products sold and $99 million in other (income) expense, net. Total project costs of approximately $1.6 billion have been recorded since the restructuring was announced. See the following table for additional details on the restructuring program. In total, the Company expects the Global Supply Chain actions to generate approximately $0.6 billion to $0.8 billion in annual pre-tax cost savings that will be substantially delivered by 2022. The Company expects to record pre-tax restructuring charges of approximately $1.9 billion to $2.3 billion, over the 4 to 5 year period of this activity. These costs are associated with network optimizations, exit costs and accelerated depreciation and amortization. The following table summarizes the severance related reserves and the associated restructuring expenses through the fiscal third quarter of 2021: (Dollars in Millions) Severance Asset Write-offs Other (2) Total Reserve balance, January 3, 2021 $ 135 — 9 144 Current year activity: Charges — 38 295 333 Cash payments (17) — (270) (287) Settled non cash — (38) (38) Reserve balance, October 3, 2021 (1) $ 118 — 34 152 (1) Cash outlays for severance are expected to be substantially paid out over the next 18 months in accordance with the Company's plans and local laws. (2) Other includes project expense such as salaries for employees supporting these initiatives and consulting expenses. The Company continuously reevaluates its severance reserves related to restructuring and the timing of payments due to the planned release of associates regarding several longer-term projects. The Company believes that the existing severance reserves are sufficient to cover the Global Supply Chain plans given the period over which the actions will take place. The Company will continue to assess and make adjustments as necessary if additional amounts become probable and estimable. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Oct. 03, 2021 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The extent to which COVID-19 impacts the Company’s business and financial results will depend on numerous evolving factors including, but not limited to: the magnitude and duration of COVID-19, the extent to which it will impact worldwide macroeconomic conditions including interest rates, employment rates and health insurance coverage, the speed of the anticipated recovery, and governmental and business reactions to the pandemic. The Company assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to the Company and the unknown future impacts COVID-19 as of October 3, 2021 and through the date of this report. The accounting matters assessed included, but were not limited to, the Company’s allowance for doubtful accounts and credit losses, inventory and related reserves, accrued rebates and associated reserves, and the carrying value of the goodwill and other long-lived assets along with the Company’s on-going vaccine development and distribution efforts. While there was not a material impact to the Company’s consolidated financial statements as of and for the quarter ended October 3, 2021, the Company’s future assessment of the magnitude and duration of COVID-19, as well as other factors, could result in material impacts to the Company’s consolidated financial statements in future reporting periods. |
New and Recently Adopted Accounting Standards | New Accounting Standards The Company assesses the adoption impacts of recently issued accounting standards by the Financial Accounting Standards Board on the Company's financial statements as well as material updates to previous assessments, if any, from the Company’s Annual Report on Form 10-K for the fiscal year ended January 3, 2021. There were no new material accounting standards issued in the fiscal nine months of 2021 that impacted the Company. Recently Adopted Accounting Standards There were no new material accounting standards adopted in the fiscal nine months of 2021. |
Reclassification | Reclassification Certain prior period amounts have been reclassified to conform to current year presentation. |
Cash and Cash Equivalents, Policy | The Company classifies all highly liquid investments with stated maturities of three months or less from date of purchase as cash equivalents and all highly liquid investments with stated maturities of greater than three months from the date of purchase as current marketable securities. Available for sale securities with stated maturities of greater than one year from the date of purchase are available to fund current operations and are classified as cash equivalents and current marketable securities. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Oct. 03, 2021 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | (Dollars in Millions) October 3, 2021 January 3, 2021 Raw materials and supplies $ 1,587 1,410 Goods in process 2,164 2,040 Finished goods 6,636 5,894 Total inventories $ 10,387 9,344 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 9 Months Ended |
Oct. 03, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | (Dollars in Millions) October 3, 2021 January 3, 2021 Intangible assets with definite lives: Patents and trademarks — gross $ 39,176 39,990 Less accumulated amortization (19,569) (17,618) Patents and trademarks — net 19,607 22,372 Customer relationships and other intangibles — gross 22,950 22,898 Less accumulated amortization (11,637) (10,912) Customer relationships and other intangibles — net* 11,313 11,986 Intangible assets with indefinite lives: Trademarks 7,013 7,195 Purchased in-process research and development (1) 9,843 11,849 Total intangible assets with indefinite lives 16,856 19,044 Total intangible assets — net $ 47,776 53,402 *The majority is comprised of customer relationships (1) In the fiscal third quarter of 2021, the Company recorded a partial IPR&D impairment charge of $0.9 billion primarily related to expected development delays in the general surgery digital robotics platform (Ottava) acquired with the Auris Health acquisition in 2019. The impairment charge was calculated based on revisions to the discounted cash flow valuation model reflecting a delay of first in human procedures of approximately two years from the initial acquisition model assumption of the second half of 2022. The remaining reduction was driven by assets that reached commercialization and are now classified as having definite lives. |
Goodwill | Goodwill as of October 3, 2021 was allocated by segment of business as follows: (Dollars in Millions) Consumer Health Pharmaceutical Medical Devices Total Goodwill at January 3, 2021 $ 10,336 11,009 15,048 36,393 Goodwill, related to acquisitions — — — — Goodwill, related to divestitures (7) — — (7) Currency translation/Other (347) (283) (187) (817) Goodwill at October 3, 2021 $ 9,982 10,726 14,861 35,569 |
Intangible Asset Amortization Expense | The estimated amortization expense for approved products, before tax, for the five succeeding years is approximately: (Dollars in Millions) 2021 2022 2023 2024 2025 $4,700 4,500 4,500 4,300 3,600 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Oct. 03, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of Derivative Activity | The following table is a summary of the activity related to derivatives and hedges for the fiscal third quarters ended in 2021 and 2020, net of tax: October 3, 2021 September 27, 2020 (Dollars in Millions) Sales Cost of Products Sold R&D Expense Interest (Income) Expense Other (Income) Expense Sales Cost of Products Sold R&D Expense Interest (Income) Expense Other (Income) Expense The effects of fair value, net investment and cash flow hedging: Gain (Loss) on fair value hedging relationship: Interest rate swaps contracts: Hedged items $ — — — (62) — — — — — Derivatives designated as hedging instruments — — — 62 — — — — — Gain (Loss) on net investment hedging relationship: Cross currency interest rate swaps contracts: Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing — — — 34 — — — — 39 — Amount of gain or (loss) recognized in AOCI — — — 34 — — — — 39 — Gain (Loss) on cash flow hedging relationship: Forward foreign exchange contracts: Amount of gain or (loss) reclassified from AOCI into income (3) 58 8 — 19 3 (81) (13) — (8) Amount of gain or (loss) recognized in AOCI (35) (155) 37 — 42 16 156 (36) — (41) Cross currency interest rate swaps contracts: Amount of gain or (loss) reclassified from AOCI into income — — — 117 — — — 84 — Amount of gain or (loss) recognized in AOCI $ — — — 144 — — — — 65 — The following table is a summary of the activity related to derivatives and hedges for the fiscal nine months ended in 2021 and 2020, net of tax: October 3, 2021 September 27, 2020 (Dollars in Millions) Sales Cost of Products Sold R&D Expense Interest (Income) Expense Other (Income) Expense Sales Cost of Products Sold R&D Expense Interest (Income) Expense Other (Income) Expense The effects of fair value, net investment and cash flow hedging: Gain (Loss) on fair value hedging relationship: Interest rate swaps contracts: Hedged items $ — — — (56) — — — — — Derivatives designated as hedging instruments — — — 56 — — — — — Gain (Loss) on net investment hedging relationship: Cross currency interest rate swaps contracts: Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing — — — 115 — — — — 118 — Amount of gain or (loss) recognized in AOCI — — — 115 — — — — 118 — Gain (Loss) on cash flow hedging relationship: Forward foreign exchange contracts: Amount of gain or (loss) reclassified from AOCI into income 25 106 (1) — 24 10 (316) (121) — (10) Amount of gain or (loss) recognized in AOCI (41) (398) 80 — 67 25 330 (156) — (55) Cross currency interest rate swaps contracts: Amount of gain or (loss) reclassified from AOCI into income — — — 307 — — — — 265 — Amount of gain or (loss) recognized in AOCI $ — — — 122 — — — — 790 — The following table is the effect of net investment hedges for the fiscal third quarters ended in 2021 and 2020: Gain/(Loss) Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income Into Income Gain/(Loss) Reclassified From (Dollars in Millions) October 3, 2021 September 27, 2020 October 3, 2021 September 27, 2020 Debt $ 115 (169) Interest (income) expense — — Cross Currency interest rate swaps $ 141 (234) Interest (income) expense — — The following table is the effect of net investment hedges for the fiscal nine months ended in 2021 and 2020: Gain/(Loss) Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income Into Income Gain/(Loss) Reclassified From (Dollars in Millions) October 3, 2021 September 27, 2020 October 3, 2021 September 27, 2020 Debt $ 279 (217) Interest (income) expense — — Cross Currency interest rate swaps $ 432 407 Interest (income) expense — — |
Schedule of Derivative Financial Instruments and Classification on Consolidated Balance Sheet | As of October 3, 2021, and January 3, 2021, the following amounts were recorded on the Consolidated Balance Sheet related to cumulative basis adjustment for fair value hedges Line item in the Consolidated Balance Sheet in which the hedged item is included Carrying Amount of the Hedged Liability Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liability (Dollars in Millions) October 3, 2021 January 3, 2021 October 3, 2021 January 3, 2021 Long-term Debt 9,851 — (73) — |
Schedule of Effect of Derivatives not Designated as Hedging Instruments | The following table is the effect of derivatives not designated as hedging instruments for the fiscal third quarters and fiscal nine months in 2021 and 2020: Gain/(Loss) Gain/(Loss) (Dollars in Millions) Location of Gain /(Loss) Recognized in Income on Derivative Fiscal Third Quarter Ended Fiscal Nine Months Ended Derivatives Not Designated as Hedging Instruments October 3, 2021 September 27, 2020 October 3, 2021 September 27, 2020 Foreign Exchange Contracts Other (income) expense $ (13) 1 (50) 66 |
Summary of Activity Related to Equity Investments | The following table is a summary of the activity related to equity investments: (Dollars in Millions) January 3, 2021 October 3, 2021 Carrying Value Changes in Fair Value Reflected in Net Income (1) Sales/ Purchases/Other (2) Carrying Value Non Current Other Assets Equity Investments with readily determinable value $ 1,481 (83) 469 1,867 1,867 Equity Investments without readily determinable value $ 738 392 (545) 585 585 (1) Recorded in Other Income/Expense (2) Other includes impact of currency |
Financial Assets and Liabilities at Fair Value | The Company’s significant financial assets and liabilities measured at fair value as of October 3, 2021 and January 3, 2021 were as follows: October 3, 2021 January 3, 2021 (Dollars in Millions) Level 1 Level 2 Level 3 Total Total (1) Derivatives designated as hedging instruments: Assets: Forward foreign exchange contracts $ — 459 — 459 849 Interest rate contracts (2) — 707 — 707 240 Total — 1,166 — 1,166 1,089 Liabilities: Forward foreign exchange contracts — 768 — 768 702 Interest rate contracts (2) — 468 — 468 1,569 Total — 1,236 — 1,236 2,271 Derivatives not designated as hedging instruments: Assets: Forward foreign exchange contracts — 51 — 51 49 Liabilities: Forward foreign exchange contracts — 48 — 48 38 Other Investments: Equity investments (3) 1,867 — — 1,867 1,481 Debt securities (4) — 18,911 — 18,911 14,042 Other Liabilities Contingent consideration (5) $ — — 613 613 633 Gross to Net Derivative Reconciliation October 3, 2021 January 3, 2021 (Dollars in Millions) Total Gross Assets $ 1,217 1,138 Credit Support Agreement (CSA) (1,058) (1,107) Total Net Asset 159 31 Total Gross Liabilities 1,284 2,309 Credit Support Agreement (CSA) (1,260) (2,172) Total Net Liabilities $ 24 137 Summarized information about changes in liabilities for contingent consideration is as follows: October 3, 2021 September 27, 2020 (Dollars in Millions) Beginning Balance $ 633 $ 1,715 Changes in estimated fair value (6) 28 (1,088) Additions — 107 Payments (48) (98) Ending Balance $ 613 $ 636 (1) 2020 assets and liabilities are all classified as Level 2 with the exception of equity investments of $1,481 million, which are classified as Level 1 and contingent consideration of $633 million, classified as Level 3. (2) Includes cross currency interest rate swaps and interest rate swaps as of October 3, 2021. Includes cross currency interest rate swaps as of January 3, 2021. (3) Classified as non-current other assets. (4) Classified within cash equivalents and current marketable securities. (5) Includes $595 million and $594 million, classified as non-current other liabilities as of October 3, 2021 and January 3, 2021, respectively. Includes $18 million and $39 million classified as current liabilities as of October 3, 2021 and January 3, 2021, respectively. (6) Ongoing fair value adjustment amounts are primarily recorded in Research and Development expense. |
Marketable Securities | The Company's cash, cash equivalents and current marketable securities as of October 3, 2021 comprised: (Dollars in Millions) Carrying Amount Unrecognized Gain Unrecognized Loss Estimated Fair Value Cash & Cash Equivalents Current Marketable Securities Cash $ 2,607 — — 2,607 2,607 — Non-U.S. sovereign securities (1) 870 — — 870 — 870 U.S. reverse repurchase agreements 1,715 — — 1,715 1,715 — Corporate debt securities (1) 3,604 — — 3,604 274 3,330 Money market funds 2,120 — — 2,120 2,120 — Time deposits (1) 1,174 — — 1,174 1,174 — Subtotal 12,090 — — 12,090 7,890 4,200 Unrealized Gain Unrealized Loss U.S. Gov't securities 18,657 — — 18,657 9,697 8,960 Other sovereign securities 3 — — 3 2 1 Corporate debt securities 251 — — 251 15 236 Subtotal available for sale debt (2) $ 18,911 — — 18,911 9,714 9,197 Total cash, cash equivalents and current marketable securities $ 31,001 — — 31,001 17,604 13,397 (1) Held to maturity investments are reported at amortized cost and gains or losses are reported in earnings. (2) Available for sale debt securities are reported at fair value with unrealized gains and losses reported net of taxes in other comprehensive income. |
Schedule of Available for Sale Securities Maturities | The contractual maturities of the available for sale securities as of October 3, 2021 are as follows: (Dollars in Millions) Cost Basis Fair Value Due within one year $ 18,895 18,895 Due after one year through five years 16 16 Due after five years through ten years — — Total debt securities $ 18,911 18,911 |
Financial Liabilities not Measured at Fair Value | Financial Instruments not measured at Fair Value: The following financial liabilities are held at carrying amount on the consolidated balance sheet as of October 3, 2021: (Dollars in Millions) Carrying Amount Estimated Fair Value Financial Liabilities Current Debt $ 3,798 3,808 Non-Current Debt 6.73% Debentures due 2023 250 285 3.375% Notes due 2023 802 857 2.05% Notes due 2023 499 511 0.650% Notes due 2024 (750MM Euro 1.1581) 867 889 5.50% Notes due 2024 (500 MM GBP 1.3465) 671 769 2.625% Notes due 2025 749 794 0.55% Notes due 2025 993 982 2.45% Notes due 2026 1,995 2,119 2.95% Notes due 2027 989 1,078 0.95% Notes due 2027 1,489 1,464 2.90% Notes due 2028 1,495 1,622 1.150% Notes due 2028 (750MM Euro 1.1581) 863 932 6.95% Notes due 2029 297 414 1.30% Notes due 2030 1,733 1,678 4.95% Debentures due 2033 498 647 4.375% Notes due 2033 855 1,059 1.650% Notes due 2035 (1.5B Euro 1.1581) 1,723 1,963 3.55% Notes due 2036 980 1,134 5.95% Notes due 2037 993 1,439 3.625% Notes due 2037 1,481 1,721 3.40% Notes due 2038 992 1,122 5.85% Debentures due 2038 696 1,013 4.50% Debentures due 2040 540 693 2.10% Notes due 2040 979 933 4.85% Notes due 2041 297 393 4.50% Notes due 2043 496 640 3.70% Notes due 2046 1,975 2,319 3.75% Notes due 2047 974 1,157 3.50% Notes due 2048 743 860 2.25% Notes due 2050 986 928 2.45% Notes due 2060 1,225 1,150 Other 5 6 Total Non-Current Debt $ 30,130 33,571 |
Pensions and Other Benefit Pl_2
Pensions and Other Benefit Plans (Tables) | 9 Months Ended |
Oct. 03, 2021 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost | Net periodic benefit costs for the Company’s defined benefit retirement plans and other benefit plans include the following components: Fiscal Third Quarter Ended Fiscal Nine Months Ended Retirement Plans Other Benefit Plans Retirement Plans Other Benefit Plans (Dollars in Millions) October 3, 2021 September 27, 2020 October 3, 2021 September 27, 2020 October 3, 2021 September 27, 2020 October 3, 2021 September 27, 2020 Service cost $ 339 330 78 72 1,019 979 232 216 Interest cost 192 238 20 33 578 715 61 99 Expected return on plan assets (661) (617) (1) (2) (1,988) (1,839) (5) (5) Amortization of prior service cost/(credit) (46) — (8) (7) (136) 1 (23) (23) Recognized actuarial losses 314 224 38 36 944 669 113 107 Curtailments and settlements — — — — 1 19 — — Net periodic benefit cost $ 138 175 127 132 418 544 378 394 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Oct. 03, 2021 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Income | Components of other comprehensive income (loss) consist of the following: Foreign Gain/(Loss) Employee Gain/(Loss) Total Accumulated Currency On Benefit On Derivatives Other Comprehensive (Dollars in Millions) Translation Securities Plans & Hedges Income (Loss) January 3, 2021 $ (8,938) 1 (6,957) 652 (15,242) Net change (241) (1) 700 (631) (173) October 3, 2021 $ (9,179) — (6,257) 21 (15,415) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Oct. 03, 2021 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic Net Earnings per Share to Diluted Net Earnings per Share | The following is a reconciliation of basic net earnings per share to diluted net earnings per share: Fiscal Third Quarter Ended Fiscal Nine Months Ended (Shares in Millions) October 3, 2021 September 27, 2020 October 3, 2021 September 27, 2020 Basic net earnings per share $ 1.39 1.35 6.13 4.93 Average shares outstanding — basic 2,632.6 2,632.5 2,632.2 2,633.0 Potential shares exercisable under stock option plans 138.3 115.7 139.1 120.2 Less: shares which could be repurchased under treasury stock method (96.0) (78.9) (96.7) (82.4) Average shares outstanding — diluted 2,674.9 2,669.3 2,674.6 2,670.8 Diluted net earnings per share $ 1.37 1.33 6.04 4.86 |
Segments of Business and Geog_2
Segments of Business and Geographic Areas (Tables) | 3 Months Ended | 9 Months Ended |
Oct. 03, 2021 | Oct. 03, 2021 | |
Segment Reporting [Abstract] | ||
Sales By Segment Of Business | SALES BY SEGMENT OF BUSINESS Fiscal Third Quarter Ended Fiscal Nine Months Ended (Dollars in Millions) October 3, September 27, Percent October 3, September 27, Percent Change Consumer Health OTC U.S. $ 686 601 14.0 % $ 1,960 1,917 2.2 % International 686 541 26.9 1,894 1,722 10.0 Worldwide 1,372 1,142 20.1 3,854 3,639 5.9 Skin Health/Beauty U.S. 569 572 (0.5) 1,862 1,767 5.4 International 555 577 (3.8) 1,595 1,506 5.9 Worldwide 1,124 1,149 (2.2) 3,457 3,273 5.6 Oral Care U.S. 150 164 (8.4) 478 510 (6.2) International 248 248 0.1 762 694 9.9 Worldwide 398 412 (3.3) 1,240 1,204 3.0 Baby Care U.S. 95 91 5.2 288 279 3.3 International 296 302 (2.0) 879 831 5.8 Worldwide 391 393 (0.3) 1,167 1,110 5.2 Women's Health U.S. 3 3 20.1 9 10 (5.7) International 229 227 0.5 675 654 3.1 Worldwide 232 230 0.8 684 664 3.0 Wound Care/Other U.S. 122 125 (2.6) 390 370 5.3 International 61 64 (5.2) 186 175 5.8 Worldwide 182 189 (3.5) 575 545 5.4 TOTAL Consumer Health U.S. 1,625 1,556 4.5 4,987 4,853 2.8 International 2,075 1,958 5.9 5,991 5,582 7.3 Worldwide 3,700 3,514 5.3 10,978 10,435 5.2 PHARMACEUTICAL Immunology U.S. 2,771 2,558 8.3 7,932 7,330 8.2 International 1,480 1,230 20.3 4,464 3,619 23.3 Worldwide 4,250 3,789 12.2 12,395 10,950 13.2 REMICADE ® U.S. 480 634 (24.3) 1,508 1,852 (18.6) U.S. Exports 47 78 (40.2) 197 321 (38.7) International 234 209 12.2 721 673 7.1 Worldwide 761 921 (17.4) 2,426 2,846 (14.8) SIMPONI / SIMPONI ARIA ® U.S. 295 312 (5.3) 840 840 0.0 International 276 280 (1.1) 877 827 6.1 Worldwide 571 592 (3.3) 1,717 1,667 3.0 STELARA ® U.S. 1,569 1,313 19.5 4,396 3,668 19.9 International 809 634 27.7 2,404 1,795 33.9 Worldwide 2,378 1,947 22.2 6,800 5,463 24.5 TREMFYA ® U.S. 376 222 69.7 975 650 50.1 International 161 105 52.5 459 316 45.4 Worldwide 537 327 64.1 1,434 965 48.5 OTHER IMMUNOLOGY U.S. 3 — * 15 — * International 0 3 * 3 9 (68.6) Worldwide 3 3 (26.4) 18 9 91.6 Infectious Diseases U.S. 679 413 64.3 1,635 1,265 29.2 International 709 451 57.2 1,788 1,397 28.0 Worldwide 1,389 864 60.6 3,424 2,662 28.6 COVID-19 VACCINE U.S. 270 — * 421 — * International 233 — * 346 — * Worldwide 502 — * 766 — * EDURANT ® / rilpivirine U.S. 12 11 8.4 31 33 (4.8) International 247 226 9.7 733 684 7.2 Worldwide 259 236 9.6 764 716 6.7 PREZISTA ® / PREZCOBIX ® / REZOLSTA ® / SYMTUZA ® U.S. 380 379 0.4 1,128 1,154 (2.2) International 137 147 (7.1) 440 461 (4.6) Worldwide 517 526 (1.7) 1,568 1,615 (2.9) OTHER INFECTIOUS DISEASES U.S. 18 24 (26.0) 55 79 (29.6) International 93 78 18.3 270 252 6.9 Worldwide 110 102 7.8 325 331 (1.8) Neuroscience U.S. 835 759 10.2 2,448 2,285 7.2 International 854 846 0.8 2,770 2,565 8.0 Worldwide 1,689 1,605 5.3 5,218 4,850 7.6 CONCERTA ® / methylphenidate U.S. 35 43 (19.5) 117 150 (22.1) International 122 107 14.2 372 319 16.4 Worldwide 157 149 4.5 489 469 4.1 INVEGA SUSTENNA ® / XEPLION ® / INVEGA TRINZA ® / TREVICTA ® U.S. 648 585 11.0 1,882 1,704 10.4 International 355 341 4.3 1,111 983 13.0 Worldwide 1,004 926 8.5 2,994 2,688 11.4 RISPERDAL CONSTA ® U.S. 71 70 1.3 210 220 (4.7) International 69 81 (16.7) 242 254 (5.1) Worldwide 140 152 (8.4) 452 475 (4.9) OTHER NEUROSCIENCE U.S. 81 60 34.7 239 210 13.9 International 307 317 (2.9) 1,045 1,008 3.7 Worldwide 388 377 3.1 1,284 1,218 5.5 Oncology U.S. 1,525 1,267 20.3 4,364 3,623 20.4 International 2,140 1,862 14.9 6,406 5,310 20.6 Worldwide 3,665 3,129 17.1 10,770 8,933 20.6 DARZALEX ® U.S. 841 585 43.7 2,302 1,540 49.5 International 739 514 43.7 2,076 1,397 48.6 Worldwide 1,580 1,099 43.7 4,378 2,937 49.1 ERLEADA ® U.S. 214 152 40.5 578 407 41.8 International 130 55 * 329 112 * Worldwide 344 206 66.7 907 519 74.7 IMBRUVICA ® U.S. 413 450 (8.3) 1,311 1,329 (1.3) International 654 581 12.6 1,996 1,682 18.7 Worldwide 1,066 1,031 3.5 3,307 3,011 9.9 ZYTIGA ® / abiraterone acetate U.S. 25 58 (57.0) 96 284 (66.2) International 523 532 (1.8) 1,653 1,564 5.7 Worldwide 548 590 (7.2) 1,749 1,848 (5.4) OTHER ONCOLOGY (1) U.S. 32 21 49.6 76 63 21.0 International 94 181 (48.0) 352 556 (36.6) Worldwide 126 203 (37.6) 428 619 (30.7) Pulmonary Hypertension U.S. 610 510 19.7 1,778 1,541 15.4 International 258 239 7.9 821 742 10.7 Worldwide 868 749 15.9 2,599 2,283 13.9 OPSUMIT ® U.S. 299 244 22.8 861 729 18.2 International 159 148 7.4 510 458 11.3 Worldwide 458 392 17.0 1,371 1,187 15.5 UPTRAVI ® U.S. 265 226 17.3 792 692 14.6 International 44 34 30.4 135 100 34.6 Worldwide 309 260 19.0 927 792 17.1 OTHER PULMONARY HYPERTENSION U.S. 47 40 14.4 125 121 2.8 International 54 57 (4.4) 176 183 (3.7) Worldwide 101 97 3.4 301 304 (1.1) Cardiovascular / Metabolism / Other U.S. 800 931 (14.0) 2,379 2,574 (7.6) International 333 351 (5.1) 1,007 1,052 (4.2) Worldwide 1,133 1,281 (11.5) 3,386 3,625 (6.6) XARELTO ® U.S. 636 630 0.8 1,794 1,716 4.5 International — — — — — — Worldwide 636 630 0.8 1,794 1,716 4.5 INVOKANA ® / INVOKAMET ® U.S. 66 156 (57.4) 249 405 (38.4) International 67 68 (1.0) 194 173 11.9 Worldwide 133 224 (40.3) 443 578 (23.4) PROCRIT ® / EPREX ® U.S. 47 69 (30.9) 168 215 (21.7) International 65 63 3.1 198 208 (4.7) Worldwide 112 132 (14.6) 366 423 (13.4) OTHER U.S. 51 75 (32.6) 168 238 (29.3) International 200 219 (8.7) 615 670 (8.3) Worldwide 251 294 (14.8) 783 908 (13.8) TOTAL PHARMACEUTICAL U.S. 7,221 6,438 12.2 20,536 18,619 10.3 International 5,773 4,980 15.9 17,256 14,685 17.5 Worldwide 12,994 11,418 13.8 37,792 33,304 13.5 MEDICAL DEVICES Interventional Solutions U.S. 444 399 11.1 1,353 1,019 32.7 International 513 437 17.7 1,599 1,134 41.1 Worldwide 957 836 14.5 2,952 2,153 37.1 Orthopaedics U.S. 1,249 1,308 (4.5) 3,821 3,427 11.5 International 843 774 8.8 2,611 2,145 21.7 Worldwide 2,093 2,083 0.5 6,433 5,572 15.4 HIPS U.S. 210 221 (5.3) 654 564 15.9 International 146 124 18.8 451 344 31.3 Worldwide 356 345 3.3 1,105 908 21.8 KNEES U.S. 184 205 (9.8) 579 527 10.0 International 131 102 28.1 403 298 35.4 Worldwide 316 308 2.8 983 825 19.2 TRAUMA U.S. 455 433 5.3 1,352 1,194 13.3 International 260 253 2.4 805 698 15.2 Worldwide 715 685 4.2 2,157 1,892 14.0 SPINE, SPORTS & OTHER U.S. 400 449 (11.1) 1,236 1,142 8.2 International 306 295 3.5 952 805 18.2 Worldwide 705 745 (5.3) 2,187 1,947 12.3 Surgery U.S. 948 913 3.9 2,881 2,247 28.2 International 1,457 1,239 17.6 4,418 3,556 24.2 Worldwide 2,405 2,152 11.8 7,299 5,803 25.8 ADVANCED U.S. 440 421 4.6 1,304 1,079 20.9 International 705 579 21.8 2,126 1,644 29.3 Worldwide 1,144 1,000 14.6 3,430 2,723 26.0 GENERAL U.S. 508 492 3.3 1,577 1,168 35.0 International 752 660 13.9 2,292 1,912 19.9 Worldwide 1,261 1,152 9.4 3,869 3,080 25.6 Vision U.S. 475 473 0.6 1,414 1,160 21.9 International 714 608 17.4 2,103 1,683 25.0 Worldwide 1,189 1,081 10.1 3,517 2,843 23.7 CONTACT LENSES / OTHER U.S. 359 375 (4.3) 1,082 924 17.0 International 522 455 14.9 1,525 1,274 19.8 Worldwide 882 830 6.2 2,607 2,198 18.6 SURGICAL U.S. 117 98 19.6 333 236 41.1 International 191 153 24.7 577 409 41.1 Worldwide 308 251 22.7 910 645 41.1 TOTAL MEDICAL DEVICES U.S. 3,117 3,092 0.8 9,470 7,852 20.6 International 3,527 3,058 15.4 10,731 8,518 26.0 Worldwide 6,644 6,150 8.0 20,201 16,370 23.4 WORLDWIDE U.S. 11,963 11,086 7.9 34,993 31,324 11.7 International 11,375 9,996 13.8 33,978 28,785 18.0 Worldwide $ 23,338 21,082 10.7 % $ 68,971 60,109 14.7 % *Percentage greater than 100% or not meaningful (1) Inclusive of VELCADE ® which was previously disclosed separately | |
Operating Profit by Segment of Business | EARNINGS BEFORE PROVISION FOR TAXES BY SEGMENT Fiscal Third Quarter Ended Fiscal Nine Months Ended (Dollars in Millions) October 3, September 27, Percent October 3, September 27, Percent Consumer Health (1) $ (636) 191 * $ 956 993 (3.7)% Pharmaceutical (2) 4,259 3,439 23.8 13,838 11,787 17.4 Medical Devices (3) 423 1,010 (58.1) 3,798 2,681 41.7 Segment earnings before provision for taxes 4,046 4,640 (12.8) 18,592 15,461 20.3 Less: Expense not allocated to segments (4) 197 239 652 611 Worldwide income before tax $ 3,849 4,401 (12.5)% $ 17,940 14,850 20.8% *Percentage greater than 100% or not meaningful (1) Consumer Health • Includes intangible amortization expense of $0.1 billion in both the fiscal third quarter of 2021 and 2020 and $0.3 billion in both the fiscal nine months of 2021 and 2020. • Includes litigation expense of $1.4 billion and $0.5 billion in the fiscal third quarter of 2021 and 2020, respectively. Includes litigation expense of $1.5 billion and $1.2 billion in the fiscal nine months of 2021 and 2020, respectively. Litigation expense in both periods is primarily related to talc. • Includes a restructuring related charge of $0.1 billion in both the fiscal nine months of 2021 and 2020. (2) Pharmaceutical • Includes divestiture gains of $0.6 billion in the fiscal nine months of 2021 related to two brands outside the U.S. • Includes intangible amortization expense of $0.8 billion in both the fiscal third quarter of 2021 and 2020. Includes intangible amortization expense of $2.5 billion and $2.4 billion in the fiscal nine months of 2021 and 2020, respectively. • Includes net litigation expense of $0.8 billion and $1.0 billion in the fiscal third quarter of 2021 and 2020, respectively. Includes net litigation expense of $0.7 billion and $1.0 billion in the fiscal nine months of 2021 and 2020, respectively. Litigation expense in 2021 is primarily related to Risperdal. Litigation expense in 2020 is related to the opioid settlement. • Includes a gain on securities of $0.1 billion in the fiscal third quarter of 2021 and $0.2 billion in both the fiscal nine months of 2021 and 2020, respectively. • Includes a restructuring related charge of $0.1 billion in both the fiscal nine months of 2021 and 2020, respectively. In fiscal 2020 and 2021, the Company entered into a series of contract manufacturing arrangements for vaccine production with third party contract manufacturing organizations. These arrangements provide the Company with future supplemental commercial capacity for vaccine production and potentially transferable rights to such production if capacity is not required. Amounts paid for services to be delivered and contractually obligated to be paid to these contract manufacturing organizations of approximately $1.2 billion are reflected in the prepaid expenses and other, other assets, accrued liabilities and other liabilities accounts in the Company's consolidated balance sheet upon execution of each agreement. Additionally, the Company has entered into certain vaccine development cost sharing arrangements with government related organizations. (3) Medical Devices • Includes a contingent consideration reversal of $0.2 billion in the fiscal third quarter of 2020 and $1.1 billion in the fiscal nine months of 2020 related to the timing of certain developmental milestones associated with the Auris Health acquisition. • Includes a restructuring related charge of $0.1 billion in both the fiscal third quarter of 2021 and 2020, respectively. Includes a restructuring related charge of $0.2 billion in both the fiscal nine months of 2021 and 2020, respectively. • Includes intangible amortization expense of $0.3 billion and $0.2 billion in the fiscal third quarter of 2021 and 2020, respectively. Includes intangible amortization expense of $0.8 billion and $0.7 billion in the fiscal nine months of 2021 and 2020, respectively. • Includes a gain on securities of $0.1 billion in the fiscal nine months of 2021. • Includes an in-process research and development expense of $0.9 billion related to the general surgery offering in digital robotics (Ottava) acquired with the Auris Health acquisition in 2019 in both the fiscal third quarter and fiscal nine months of 2021. See Note 3 to the Consolidated Financial Statements for more details. | EARNINGS BEFORE PROVISION FOR TAXES BY SEGMENT Fiscal Third Quarter Ended Fiscal Nine Months Ended (Dollars in Millions) October 3, September 27, Percent October 3, September 27, Percent Consumer Health (1) $ (636) 191 * $ 956 993 (3.7)% Pharmaceutical (2) 4,259 3,439 23.8 13,838 11,787 17.4 Medical Devices (3) 423 1,010 (58.1) 3,798 2,681 41.7 Segment earnings before provision for taxes 4,046 4,640 (12.8) 18,592 15,461 20.3 Less: Expense not allocated to segments (4) 197 239 652 611 Worldwide income before tax $ 3,849 4,401 (12.5)% $ 17,940 14,850 20.8% *Percentage greater than 100% or not meaningful (1) Consumer Health • Includes intangible amortization expense of $0.1 billion in both the fiscal third quarter of 2021 and 2020 and $0.3 billion in both the fiscal nine months of 2021 and 2020. • Includes litigation expense of $1.4 billion and $0.5 billion in the fiscal third quarter of 2021 and 2020, respectively. Includes litigation expense of $1.5 billion and $1.2 billion in the fiscal nine months of 2021 and 2020, respectively. Litigation expense in both periods is primarily related to talc. • Includes a restructuring related charge of $0.1 billion in both the fiscal nine months of 2021 and 2020. (2) Pharmaceutical • Includes divestiture gains of $0.6 billion in the fiscal nine months of 2021 related to two brands outside the U.S. • Includes intangible amortization expense of $0.8 billion in both the fiscal third quarter of 2021 and 2020. Includes intangible amortization expense of $2.5 billion and $2.4 billion in the fiscal nine months of 2021 and 2020, respectively. • Includes net litigation expense of $0.8 billion and $1.0 billion in the fiscal third quarter of 2021 and 2020, respectively. Includes net litigation expense of $0.7 billion and $1.0 billion in the fiscal nine months of 2021 and 2020, respectively. Litigation expense in 2021 is primarily related to Risperdal. Litigation expense in 2020 is related to the opioid settlement. • Includes a gain on securities of $0.1 billion in the fiscal third quarter of 2021 and $0.2 billion in both the fiscal nine months of 2021 and 2020, respectively. • Includes a restructuring related charge of $0.1 billion in both the fiscal nine months of 2021 and 2020, respectively. In fiscal 2020 and 2021, the Company entered into a series of contract manufacturing arrangements for vaccine production with third party contract manufacturing organizations. These arrangements provide the Company with future supplemental commercial capacity for vaccine production and potentially transferable rights to such production if capacity is not required. Amounts paid for services to be delivered and contractually obligated to be paid to these contract manufacturing organizations of approximately $1.2 billion are reflected in the prepaid expenses and other, other assets, accrued liabilities and other liabilities accounts in the Company's consolidated balance sheet upon execution of each agreement. Additionally, the Company has entered into certain vaccine development cost sharing arrangements with government related organizations. (3) Medical Devices • Includes a contingent consideration reversal of $0.2 billion in the fiscal third quarter of 2020 and $1.1 billion in the fiscal nine months of 2020 related to the timing of certain developmental milestones associated with the Auris Health acquisition. • Includes a restructuring related charge of $0.1 billion in both the fiscal third quarter of 2021 and 2020, respectively. Includes a restructuring related charge of $0.2 billion in both the fiscal nine months of 2021 and 2020, respectively. • Includes intangible amortization expense of $0.3 billion and $0.2 billion in the fiscal third quarter of 2021 and 2020, respectively. Includes intangible amortization expense of $0.8 billion and $0.7 billion in the fiscal nine months of 2021 and 2020, respectively. • Includes a gain on securities of $0.1 billion in the fiscal nine months of 2021. • Includes an in-process research and development expense of $0.9 billion related to the general surgery offering in digital robotics (Ottava) acquired with the Auris Health acquisition in 2019 in both the fiscal third quarter and fiscal nine months of 2021. See Note 3 to the Consolidated Financial Statements for more details. |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | SALES BY GEOGRAPHIC AREA Fiscal Third Quarter Ended Fiscal Nine Months Ended (Dollars in Millions) October 3, 2021 September 27, 2020 Percent October 3, 2021 September 27, 2020 Percent Change United States $ 11,963 11,086 7.9 % $ 34,993 31,324 11.7 % Europe 5,587 4,819 15.9 16,669 13,709 21.6 Western Hemisphere, excluding U.S. 1,500 1,296 15.7 4,291 3,931 9.2 Asia-Pacific, Africa 4,288 3,881 10.5 13,018 11,145 16.8 Total $ 23,338 21,082 10.7 % $ 68,971 60,109 14.7 % |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Oct. 03, 2021 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve | The following table summarizes the severance related reserves and the associated restructuring expenses through the fiscal third quarter of 2021: (Dollars in Millions) Severance Asset Write-offs Other (2) Total Reserve balance, January 3, 2021 $ 135 — 9 144 Current year activity: Charges — 38 295 333 Cash payments (17) — (270) (287) Settled non cash — (38) (38) Reserve balance, October 3, 2021 (1) $ 118 — 34 152 (1) Cash outlays for severance are expected to be substantially paid out over the next 18 months in accordance with the Company's plans and local laws. (2) Other includes project expense such as salaries for employees supporting these initiatives and consulting expenses. |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Oct. 03, 2021 | Jan. 03, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 1,587 | $ 1,410 |
Goods in process | 2,164 | 2,040 |
Finished goods | 6,636 | 5,894 |
Total inventories | $ 10,387 | $ 9,344 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | |
Oct. 03, 2021 | Jan. 03, 2021 | |
Intangible assets with indefinite lives: | ||
Indefinite-Lived Intangible Assets | $ 16,856 | $ 19,044 |
Total intangible assets - net | 47,776 | 53,402 |
Trademarks | ||
Intangible assets with indefinite lives: | ||
Indefinite-Lived Intangible Assets | 7,013 | 7,195 |
Purchased In-Process Research And Development | ||
Intangible assets with indefinite lives: | ||
Indefinite-Lived Intangible Assets | 9,843 | 11,849 |
Patents And Trademarks | ||
Intangible assets with definite lives: | ||
Finite-Lived Intangible Assets, Gross | 39,176 | 39,990 |
Less accumulated amortization | (19,569) | (17,618) |
Finite-Lived Intangible Assets, Net | 19,607 | 22,372 |
Customer relationships and other intangible assets | ||
Intangible assets with definite lives: | ||
Finite-Lived Intangible Assets, Gross | 22,950 | 22,898 |
Less accumulated amortization | (11,637) | (10,912) |
Finite-Lived Intangible Assets, Net | 11,313 | $ 11,986 |
In-process research and development | Auris Health | ||
Intangible assets with indefinite lives: | ||
Impairment of intangible assets | $ 900 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill - Goodwill By Segment (Details) $ in Millions | 9 Months Ended |
Oct. 03, 2021USD ($) | |
Goodwill [Roll Forward] | |
Goodwill Beginning of Period | $ 36,393 |
Goodwill, related to acquisitions | 0 |
Goodwill, related to divestitures | (7) |
Currency translation/Other | (817) |
Goodwill End of Period | 35,569 |
Consumer Health | |
Goodwill [Roll Forward] | |
Goodwill Beginning of Period | 10,336 |
Goodwill, related to acquisitions | 0 |
Goodwill, related to divestitures | (7) |
Currency translation/Other | (347) |
Goodwill End of Period | 9,982 |
PHARMACEUTICAL | |
Goodwill [Roll Forward] | |
Goodwill Beginning of Period | 11,009 |
Goodwill, related to acquisitions | 0 |
Goodwill, related to divestitures | 0 |
Currency translation/Other | (283) |
Goodwill End of Period | 10,726 |
Medical Devices | |
Goodwill [Roll Forward] | |
Goodwill Beginning of Period | 15,048 |
Goodwill, related to acquisitions | 0 |
Goodwill, related to divestitures | 0 |
Currency translation/Other | (187) |
Goodwill End of Period | $ 14,861 |
Intangible Assets and Goodwil_4
Intangible Assets and Goodwill - Narrative (Details) - USD ($) $ in Billions | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense of amortizable intangible assets | $ 1.1 | $ 1.2 | $ 3.6 | $ 3.4 |
Patents And Trademarks | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Weighted-Average Useful Life | 12 years | |||
Customer relationships and other intangible assets | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Weighted-Average Useful Life | 21 years |
Intangible Assets and Goodwil_5
Intangible Assets and Goodwill - Intangible Asset Amortization Expense (Details) $ in Millions | Oct. 03, 2021USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2021 | $ 4,700 |
2022 | 4,500 |
2023 | 4,500 |
2024 | 4,300 |
2025 | $ 3,600 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Oct. 03, 2021 | Jan. 03, 2021 | |
Derivative [Line Items] | ||
Accumulated other comprehensive income on derivatives, after tax | $ 21 | |
Reclassification of foreign exchange contracts into earnings, period | next 12 months | |
Maximum length of time for hedge exposure | 18 months | |
Weighted average interest rate on non-current debt | 2.98% | |
Excess of the estimated fair value over the carrying value of debt | $ 5,400 | |
Current Debt | $ 3,798 | 2,631 |
Commercial Paper | ||
Derivative [Line Items] | ||
Current Debt | $ 1,300 | |
Weighted average interest rate | 0.08% | |
Term | 3 months | |
Forward foreign exchange contracts | ||
Derivative [Line Items] | ||
Collateral already posted, aggregate fair value | $ 202 | |
Derivative, notional amount | 45,800 | 37,800 |
Cross currency interest rate swaps | ||
Derivative [Line Items] | ||
Derivative, notional amount | 35,100 | $ 30,600 |
Interest Rate Swap | ||
Derivative [Line Items] | ||
Derivative, notional amount | 10,000 | |
Equity Securities | ||
Derivative [Line Items] | ||
Changes in Fair Value Reflected in Net Income | 417 | |
Equity Investments without readily determinable value | Equity Securities | ||
Derivative [Line Items] | ||
Equity, fair value adjustment, impairment loss | (25) | |
Changes in Fair Value Reflected in Net Income | $ 392 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Derivative Activity (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Other (income) expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) reclassified from AOCI into income | $ 0 | $ 0 | $ 0 | $ 0 |
Cross currency interest rate swaps | Other (income) expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) reclassified from AOCI into income | 0 | 0 | 0 | 0 |
Fair Value Hedging | Cross currency interest rate swaps | Sales to customers | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing | 0 | 0 | ||
Amount of gain or (loss) recognized in AOCI | 0 | 0 | ||
Fair Value Hedging | Cross currency interest rate swaps | Cost of products sold | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing | 0 | 0 | ||
Amount of gain or (loss) recognized in AOCI | 0 | 0 | ||
Fair Value Hedging | Cross currency interest rate swaps | Research and Development Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing | 0 | 0 | ||
Amount of gain or (loss) recognized in AOCI | 0 | 0 | ||
Fair Value Hedging | Cross currency interest rate swaps | Other (income) expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing | 0 | 0 | ||
Amount of gain or (loss) recognized in AOCI | 0 | 0 | ||
Fair Value Hedging | Cross currency interest rate swaps | Interest (income)/Interest expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing | 115 | 118 | ||
Amount of gain or (loss) recognized in AOCI | 115 | 118 | ||
Fair Value Hedging | Interest Rate Swap | Sales to customers | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing | 0 | 0 | 0 | 0 |
Amount of gain or (loss) recognized in AOCI | 0 | 0 | 0 | 0 |
Fair Value Hedging | Interest Rate Swap | Cost of products sold | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing | 0 | 0 | 0 | 0 |
Amount of gain or (loss) recognized in AOCI | 0 | 0 | 0 | 0 |
Fair Value Hedging | Interest Rate Swap | Research and Development Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing | 0 | 0 | 0 | 0 |
Amount of gain or (loss) recognized in AOCI | 0 | 0 | 0 | 0 |
Fair Value Hedging | Interest Rate Swap | Other (income) expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing | 0 | 0 | 0 | 0 |
Amount of gain or (loss) recognized in AOCI | 0 | 0 | 0 | 0 |
Fair Value Hedging | Interest Rate Swap | Interest (income)/Interest expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing | (62) | (56) | ||
Amount of gain or (loss) recognized in AOCI | 62 | 56 | ||
Net Investment Hedging [Member] | Net Investment Hedging [Member] | Sales to customers | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing | 0 | 0 | ||
Amount of gain or (loss) recognized in AOCI | 0 | 0 | ||
Net Investment Hedging [Member] | Net Investment Hedging [Member] | Cost of products sold | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing | 0 | 0 | ||
Amount of gain or (loss) recognized in AOCI | 0 | 0 | ||
Net Investment Hedging [Member] | Net Investment Hedging [Member] | Research and Development Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing | 0 | 0 | ||
Amount of gain or (loss) recognized in AOCI | 0 | 0 | ||
Net Investment Hedging [Member] | Net Investment Hedging [Member] | Other (income) expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing | 0 | 0 | ||
Amount of gain or (loss) recognized in AOCI | 0 | 0 | ||
Net Investment Hedging [Member] | Net Investment Hedging [Member] | Interest (income)/Interest expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing | 34 | 39 | ||
Amount of gain or (loss) recognized in AOCI | 34 | 39 | ||
Cash Flow Hedging | Forward foreign exchange contracts | Sales to customers | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in AOCI | (35) | 16 | (41) | 25 |
Amount of gain or (loss) reclassified from AOCI into income | (3) | 3 | 25 | 10 |
Cash Flow Hedging | Forward foreign exchange contracts | Cost of products sold | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in AOCI | (155) | 156 | (398) | 330 |
Amount of gain or (loss) reclassified from AOCI into income | 58 | (81) | 106 | (316) |
Cash Flow Hedging | Forward foreign exchange contracts | Research and Development Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in AOCI | 37 | (36) | 80 | (156) |
Amount of gain or (loss) reclassified from AOCI into income | 8 | (13) | (1) | (121) |
Cash Flow Hedging | Forward foreign exchange contracts | Other (income) expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in AOCI | 42 | (41) | 67 | (55) |
Amount of gain or (loss) reclassified from AOCI into income | 19 | (8) | 24 | (10) |
Cash Flow Hedging | Forward foreign exchange contracts | Interest (income)/Interest expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in AOCI | 0 | 0 | 0 | 0 |
Amount of gain or (loss) reclassified from AOCI into income | 0 | 0 | 0 | 0 |
Cash Flow Hedging | Cross currency interest rate swaps | Sales to customers | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in AOCI | 0 | 0 | 0 | 0 |
Amount of gain or (loss) reclassified from AOCI into income | 0 | 0 | 0 | 0 |
Cash Flow Hedging | Cross currency interest rate swaps | Cost of products sold | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in AOCI | 0 | 0 | 0 | 0 |
Amount of gain or (loss) reclassified from AOCI into income | 0 | 0 | 0 | |
Cash Flow Hedging | Cross currency interest rate swaps | Research and Development Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in AOCI | 0 | 0 | 0 | 0 |
Amount of gain or (loss) reclassified from AOCI into income | 0 | 0 | 0 | 0 |
Cash Flow Hedging | Cross currency interest rate swaps | Other (income) expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in AOCI | 0 | 0 | 0 | 0 |
Amount of gain or (loss) reclassified from AOCI into income | 0 | 0 | 0 | 0 |
Cash Flow Hedging | Cross currency interest rate swaps | Interest (income)/Interest expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in AOCI | 144 | 65 | 122 | 790 |
Amount of gain or (loss) reclassified from AOCI into income | $ 117 | $ 84 | $ 307 | $ 265 |
Fair Value Measurements - Deriv
Fair Value Measurements - Derivatives, Balance Sheet Location (Details) - USD ($) $ in Millions | Oct. 03, 2021 | Jan. 03, 2021 |
Derivative [Line Items] | ||
Carrying Amount of the Hedged Liability | $ 1,284 | $ 2,309 |
Long-term Debt | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Carrying Amount of the Hedged Liability | 9,851 | 0 |
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liability | $ (73) | $ 0 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Effect of Derivatives not Designated as Hedging Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Not Designated as Hedging Instrument | Forward foreign exchange contracts | Other (income) expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain/(Loss) Recognized In Income on Derivative | $ (13) | $ 1 | $ (50) | $ 66 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Effect of Net Investment Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain/(Loss) Recognized In Accumulated OCI | $ 115 | $ (169) | $ 279 | $ (217) |
Other Income Expense Net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) reclassified from AOCI into income | 0 | 0 | 0 | 0 |
Cross Currency Interest Rate Contract | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain/(Loss) Recognized In Accumulated OCI | 141 | (234) | 432 | 407 |
Cross Currency Interest Rate Contract | Other Income Expense Net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) reclassified from AOCI into income | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Activity Related to Equity Investments (Details) - USD ($) $ in Millions | 9 Months Ended | |
Oct. 03, 2021 | Jan. 03, 2021 | |
Equity Investment [Roll Forward] | ||
Non Current Other Assets | $ 6,870 | $ 6,562 |
Equity Securities | ||
Equity Investment [Roll Forward] | ||
Changes in Fair Value Reflected in Net Income | 417 | |
Equity Securities | Equity Investments with readily determinable value | ||
Equity Investment [Roll Forward] | ||
Carrying value, beginning of period | 1,481 | |
Changes in Fair Value Reflected in Net Income | (83) | |
Sales/ Purchases/Other | 469 | |
Carrying value, end of period | 1,867 | |
Non Current Other Assets | 1,867 | |
Equity Securities | Equity Investments without readily determinable value | ||
Equity Investment [Roll Forward] | ||
Carrying value, beginning of period | 738 | |
Changes in Fair Value Reflected in Net Income | 392 | |
Sales/ Purchases/Other | (545) | |
Carrying value, end of period | 585 | |
Non Current Other Assets | $ 585 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities at Fair Value (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Oct. 03, 2021 | Sep. 27, 2020 | Jan. 03, 2021 | |
Financial assets and liabilities at fair value | |||
Derivatives designated as hedging instruments : Assets | $ 1,166 | ||
Derivatives designated as hedging instruments : Liabilities | 1,236 | ||
Available-for-sale Securities, Equity Securities | 1,867 | $ 1,481 | |
Available-for-sale Securities | 18,911 | 14,042 | |
Contingent consideration | 613 | 633 | |
Total Gross Assets | 1,217 | 1,138 | |
Credit Support Agreement (CSA) | (1,058) | (1,107) | |
Total Net Asset | 159 | 31 | |
Total Gross Liabilities | 1,284 | 2,309 | |
Credit Support Agreement (CSA) | (1,260) | (2,172) | |
Total Net Liabilities | 24 | 137 | |
Beginning Balance | 633 | $ 1,715 | 1,715 |
Changes in estimated fair value (6) | 28 | (1,088) | |
Additions | 0 | 107 | |
Payments | (48) | (98) | |
Ending Balance | 613 | 636 | 633 |
Contingent consideration reversal | 0 | $ (1,148) | |
Quoted prices in active markets for identical assets and liabilities Level 1 | |||
Financial assets and liabilities at fair value | |||
Derivatives designated as hedging instruments : Assets | 0 | ||
Derivatives designated as hedging instruments : Liabilities | 0 | ||
Available-for-sale Securities, Equity Securities | 1,867 | 1,481 | |
Available-for-sale Securities | 0 | ||
Contingent consideration | 0 | ||
Significant other observable inputs Level 2 | |||
Financial assets and liabilities at fair value | |||
Derivatives designated as hedging instruments : Assets | 1,166 | 1,089 | |
Derivatives designated as hedging instruments : Liabilities | 1,236 | 2,271 | |
Available-for-sale Securities, Equity Securities | 0 | ||
Available-for-sale Securities | 18,911 | ||
Contingent consideration | 0 | ||
Significant unobservable inputs Level 3 | |||
Financial assets and liabilities at fair value | |||
Derivatives designated as hedging instruments : Assets | 0 | ||
Derivatives designated as hedging instruments : Liabilities | 0 | ||
Available-for-sale Securities, Equity Securities | 0 | ||
Available-for-sale Securities | 0 | ||
Contingent consideration | 613 | 633 | |
Interest Rate Contract | |||
Financial assets and liabilities at fair value | |||
Derivatives designated as hedging instruments : Assets | 707 | ||
Derivatives designated as hedging instruments : Liabilities | 468 | ||
Interest Rate Contract | Quoted prices in active markets for identical assets and liabilities Level 1 | |||
Financial assets and liabilities at fair value | |||
Derivatives designated as hedging instruments : Assets | 0 | ||
Derivatives designated as hedging instruments : Liabilities | 0 | ||
Interest Rate Contract | Significant other observable inputs Level 2 | |||
Financial assets and liabilities at fair value | |||
Derivatives designated as hedging instruments : Assets | 707 | 240 | |
Derivatives designated as hedging instruments : Liabilities | 468 | 1,569 | |
Interest Rate Contract | Significant unobservable inputs Level 3 | |||
Financial assets and liabilities at fair value | |||
Derivatives designated as hedging instruments : Assets | 0 | ||
Derivatives designated as hedging instruments : Liabilities | 0 | ||
Forward foreign exchange contracts | |||
Financial assets and liabilities at fair value | |||
Derivatives designated as hedging instruments : Assets | 459 | ||
Derivatives designated as hedging instruments : Liabilities | 768 | ||
Derivatives not designated as hedging instruments : Assets | 51 | ||
Derivatives not designated as hedging instruments : Liabilities | 48 | ||
Forward foreign exchange contracts | Quoted prices in active markets for identical assets and liabilities Level 1 | |||
Financial assets and liabilities at fair value | |||
Derivatives designated as hedging instruments : Assets | 0 | ||
Derivatives designated as hedging instruments : Liabilities | 0 | ||
Derivatives not designated as hedging instruments : Assets | 0 | ||
Derivatives not designated as hedging instruments : Liabilities | 0 | ||
Forward foreign exchange contracts | Significant other observable inputs Level 2 | |||
Financial assets and liabilities at fair value | |||
Derivatives designated as hedging instruments : Assets | 459 | 849 | |
Derivatives designated as hedging instruments : Liabilities | 768 | 702 | |
Derivatives not designated as hedging instruments : Assets | 51 | 49 | |
Derivatives not designated as hedging instruments : Liabilities | 48 | 38 | |
Forward foreign exchange contracts | Significant unobservable inputs Level 3 | |||
Financial assets and liabilities at fair value | |||
Derivatives designated as hedging instruments : Assets | 0 | ||
Derivatives designated as hedging instruments : Liabilities | 0 | ||
Derivatives not designated as hedging instruments : Assets | 0 | ||
Derivatives not designated as hedging instruments : Liabilities | 0 | ||
Auris Health | |||
Financial assets and liabilities at fair value | |||
Contingent consideration reversal | (1,148) | ||
Other Noncurrent Liabilities | Auris Health | |||
Financial assets and liabilities at fair value | |||
Contingent consideration | 595 | 594 | |
Other Current Liabilities | |||
Financial assets and liabilities at fair value | |||
Contingent consideration | $ 18 | $ 39 |
Fair Value Measurements - Cash,
Fair Value Measurements - Cash, Cash Equivalents and Marketable Securities (Details) - USD ($) $ in Millions | Oct. 03, 2021 | Jan. 03, 2021 |
Debt Securities, Available-for-sale [Abstract] | ||
Available-for-sale Securities - Estimated Fair Value | $ 18,911 | $ 14,042 |
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Cash and Cash Equivalents | 17,604 | 13,985 |
Marketable securities | 13,397 | $ 11,200 |
Total cash, cash equivalents and current marketable securities, Carrying Amount | 31,001 | |
Total cash, cash equivalents and current marketable securities, Unrecognized Gain | 0 | |
Total cash, cash equivalents and current marketable securities, Unrecognized Loss | 0 | |
Total cash, cash equivalents and current marketable securities, Estimated Fair Value | 31,001 | |
Held-to-maturity Securities | ||
Debt Securities, Held-to-maturity [Abstract] | ||
Held-to-maturity Securities - Carrying Amount | 12,090 | |
Held-to-maturity Securities, Unrecognized Gain | 0 | |
Held-to-maturity Securities, Unrecognized Loss | 0 | |
Held-to-maturity Securities - Estimated Fair Value | 12,090 | |
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Cash and Cash Equivalents | 7,890 | |
Marketable securities | 4,200 | |
Held-to-maturity Securities | Cash | ||
Debt Securities, Held-to-maturity [Abstract] | ||
Held-to-maturity Securities - Carrying Amount | 2,607 | |
Held-to-maturity Securities, Unrecognized Gain | 0 | |
Held-to-maturity Securities, Unrecognized Loss | 0 | |
Held-to-maturity Securities - Estimated Fair Value | 2,607 | |
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Cash and Cash Equivalents | 2,607 | |
Marketable securities | 0 | |
Held-to-maturity Securities | Non-U.S. sovereign securities(1) | ||
Debt Securities, Held-to-maturity [Abstract] | ||
Held-to-maturity Securities - Carrying Amount | 870 | |
Held-to-maturity Securities, Unrecognized Gain | 0 | |
Held-to-maturity Securities, Unrecognized Loss | 0 | |
Held-to-maturity Securities - Estimated Fair Value | 870 | |
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Cash and Cash Equivalents | 0 | |
Marketable securities | 870 | |
Held-to-maturity Securities | U.S. reverse repurchase agreements | ||
Debt Securities, Held-to-maturity [Abstract] | ||
Held-to-maturity Securities - Carrying Amount | 1,715 | |
Held-to-maturity Securities, Unrecognized Gain | 0 | |
Held-to-maturity Securities, Unrecognized Loss | 0 | |
Held-to-maturity Securities - Estimated Fair Value | 1,715 | |
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Cash and Cash Equivalents | 1,715 | |
Marketable securities | 0 | |
Held-to-maturity Securities | Corporate debt securities(1) | ||
Debt Securities, Held-to-maturity [Abstract] | ||
Held-to-maturity Securities - Carrying Amount | 3,604 | |
Held-to-maturity Securities, Unrecognized Gain | 0 | |
Held-to-maturity Securities, Unrecognized Loss | 0 | |
Held-to-maturity Securities - Estimated Fair Value | 3,604 | |
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Cash and Cash Equivalents | 274 | |
Marketable securities | 3,330 | |
Held-to-maturity Securities | Money market funds | ||
Debt Securities, Held-to-maturity [Abstract] | ||
Held-to-maturity Securities - Carrying Amount | 2,120 | |
Held-to-maturity Securities, Unrecognized Gain | 0 | |
Held-to-maturity Securities, Unrecognized Loss | 0 | |
Held-to-maturity Securities - Estimated Fair Value | 2,120 | |
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Cash and Cash Equivalents | 2,120 | |
Marketable securities | 0 | |
Held-to-maturity Securities | Time deposits(1) | ||
Debt Securities, Held-to-maturity [Abstract] | ||
Held-to-maturity Securities - Carrying Amount | 1,174 | |
Held-to-maturity Securities, Unrecognized Gain | 0 | |
Held-to-maturity Securities, Unrecognized Loss | 0 | |
Held-to-maturity Securities - Estimated Fair Value | 1,174 | |
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Cash and Cash Equivalents | 1,174 | |
Marketable securities | 0 | |
Available-for-sale Securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Available-for-sale Securities - Carrying Amount | 18,911 | |
Available-for-sale Securities, Unrecognized Gain | 0 | |
Available-for-sale Securities, Unrecognized Loss | 0 | |
Available-for-sale Securities - Estimated Fair Value | 18,911 | |
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Cash and Cash Equivalents | 9,714 | |
Marketable securities | 9,197 | |
Available-for-sale Securities | Non-U.S. sovereign securities(1) | ||
Debt Securities, Available-for-sale [Abstract] | ||
Available-for-sale Securities - Carrying Amount | 3 | |
Available-for-sale Securities, Unrecognized Gain | 0 | |
Available-for-sale Securities, Unrecognized Loss | 0 | |
Available-for-sale Securities - Estimated Fair Value | 3 | |
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Cash and Cash Equivalents | 2 | |
Marketable securities | 1 | |
Available-for-sale Securities | Corporate debt securities(1) | ||
Debt Securities, Available-for-sale [Abstract] | ||
Available-for-sale Securities - Carrying Amount | 251 | |
Available-for-sale Securities, Unrecognized Gain | 0 | |
Available-for-sale Securities, Unrecognized Loss | 0 | |
Available-for-sale Securities - Estimated Fair Value | 251 | |
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Cash and Cash Equivalents | 15 | |
Marketable securities | 236 | |
Available-for-sale Securities | U.S. Gov't securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Available-for-sale Securities - Carrying Amount | 18,657 | |
Available-for-sale Securities, Unrecognized Gain | 0 | |
Available-for-sale Securities, Unrecognized Loss | 0 | |
Available-for-sale Securities - Estimated Fair Value | 18,657 | |
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Cash and Cash Equivalents | 9,697 | |
Marketable securities | $ 8,960 |
Fair Value Measurements - Sch_3
Fair Value Measurements - Schedule of Available for Sale Securities Maturities (Details) $ in Millions | Oct. 03, 2021USD ($) |
Cost Basis | |
Due within one year | $ 18,895 |
Due after one year through five years | 16 |
Due after five years through ten years | 0 |
Total debt securities | 18,911 |
Fair Value | |
Due within one year | 18,895 |
Due after one year through five years | 16 |
Due after five years through ten years | 0 |
Total debt securities | $ 18,911 |
Fair Value Measurements - Fin_2
Fair Value Measurements - Financial Liabilities not Measured at Fair Value (Details) - USD ($) $ in Millions | Oct. 03, 2021 | Jan. 03, 2021 |
Financial Liabilities | ||
Current Debt | $ 3,798 | $ 2,631 |
Non-Current Debt | ||
Non-Current Debt | 30,130 | $ 32,635 |
Carrying Amount | ||
Financial Liabilities | ||
Current Debt | 3,798 | |
Non-Current Debt | ||
Non-Current Debt | 30,130 | |
Estimated Fair Value | ||
Financial Liabilities | ||
Current Debt | 3,808 | |
Non-Current Debt | ||
Non-Current Debt | $ 33,571 | |
6.73% Debentures due 2023 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 6.73% | |
6.73% Debentures due 2023 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 250 | |
6.73% Debentures due 2023 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 285 | |
3.375% Notes due 2023 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 3.375% | |
3.375% Notes due 2023 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 802 | |
3.375% Notes due 2023 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 857 | |
2.05% Notes due 2023 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 2.05% | |
2.05% Notes due 2023 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 499 | |
2.05% Notes due 2023 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 511 | |
0.650% Notes due 2024 (750MM Euro 1.1581) | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 0.65% | |
0.650% Notes due 2024 (750MM Euro 1.1581) | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 867 | |
0.650% Notes due 2024 (750MM Euro 1.1581) | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 889 | |
5.50% Notes due 2024 (500 MM GBP 1.3465) | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 5.50% | |
5.50% Notes due 2024 (500 MM GBP 1.3465) | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 671 | |
5.50% Notes due 2024 (500 MM GBP 1.3465) | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 769 | |
2.625% Notes due 2025 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 2.625% | |
2.625% Notes due 2025 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 749 | |
2.625% Notes due 2025 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 794 | |
0.55% Notes due 2025 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 0.55% | |
0.55% Notes due 2025 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 993 | |
0.55% Notes due 2025 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 982 | |
2.45% Notes due 2026 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 2.45% | |
2.45% Notes due 2026 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 1,995 | |
2.45% Notes due 2026 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 2,119 | |
2.95% Notes due 2027 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 2.95% | |
2.95% Notes due 2027 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 989 | |
2.95% Notes due 2027 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 1,078 | |
0.95% Notes due 2027 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 0.95% | |
0.95% Notes due 2027 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 1,489 | |
0.95% Notes due 2027 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 1,464 | |
2.90% Notes due 2028 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 2.90% | |
2.90% Notes due 2028 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 1,495 | |
2.90% Notes due 2028 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 1,622 | |
1.150% Notes due 2028 (750MM Euro 1.1581) | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 1.15% | |
1.150% Notes due 2028 (750MM Euro 1.1581) | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 863 | |
1.150% Notes due 2028 (750MM Euro 1.1581) | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 932 | |
6.95% Notes due 2029 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 6.95% | |
6.95% Notes due 2029 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 297 | |
6.95% Notes due 2029 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 414 | |
1.30% Notes due 2030 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 1.30% | |
1.30% Notes due 2030 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 1,733 | |
1.30% Notes due 2030 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 1,678 | |
4.95% Debentures due 2033 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 4.95% | |
4.95% Debentures due 2033 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 498 | |
4.95% Debentures due 2033 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 647 | |
4.375% Notes due 2033 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 4.375% | |
4.375% Notes due 2033 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 855 | |
4.375% Notes due 2033 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 1,059 | |
1.650% Notes due 2035 (1.5B Euro 1.1581) | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 1.65% | |
1.650% Notes due 2035 (1.5B Euro 1.1581) | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 1,723 | |
1.650% Notes due 2035 (1.5B Euro 1.1581) | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 1,963 | |
3.55% Notes due 2036 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 3.55% | |
3.55% Notes due 2036 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 980 | |
3.55% Notes due 2036 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 1,134 | |
5.95% Notes due 2037 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 5.95% | |
5.95% Notes due 2037 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 993 | |
5.95% Notes due 2037 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 1,439 | |
3.625% Notes due 2037 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 3.625% | |
3.625% Notes due 2037 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 1,481 | |
3.625% Notes due 2037 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 1,721 | |
3.40% Notes due 2038 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 3.40% | |
3.40% Notes due 2038 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 992 | |
3.40% Notes due 2038 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 1,122 | |
5.85% Debentures due 2038 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 5.85% | |
5.85% Debentures due 2038 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 696 | |
5.85% Debentures due 2038 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 1,013 | |
4.50% Debentures due 2040 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 4.50% | |
4.50% Debentures due 2040 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 540 | |
4.50% Debentures due 2040 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 693 | |
2.10% Notes due 2040 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 2.10% | |
2.10% Notes due 2040 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 979 | |
2.10% Notes due 2040 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 933 | |
4.85% Notes due 2041 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 4.85% | |
4.85% Notes due 2041 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 297 | |
4.85% Notes due 2041 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 393 | |
4.50% Notes due 2043 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 4.50% | |
4.50% Notes due 2043 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 496 | |
4.50% Notes due 2043 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 640 | |
3.70% Notes due 2046 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 3.70% | |
3.70% Notes due 2046 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 1,975 | |
3.70% Notes due 2046 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 2,319 | |
3.75% Notes due 2047 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 3.75% | |
3.75% Notes due 2047 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 974 | |
3.75% Notes due 2047 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 1,157 | |
3.50% Notes due 2048 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 3.50% | |
3.50% Notes due 2048 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 743 | |
3.50% Notes due 2048 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 860 | |
2.25% Notes due 2050 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 2.25% | |
2.25% Notes due 2050 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 986 | |
2.25% Notes due 2050 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 928 | |
2.45% Notes due 2060 | ||
Non-Current Debt | ||
Stated interest rate (as a percent) | 2.45% | |
2.45% Notes due 2060 | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | $ 1,225 | |
2.45% Notes due 2060 | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | 1,150 | |
Other | Carrying Amount | ||
Non-Current Debt | ||
Non-Current Debt | 5 | |
Other | Estimated Fair Value | ||
Non-Current Debt | ||
Non-Current Debt | $ 6 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Billions | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Mar. 29, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Income Tax (Textuals) | ||||
Worldwide effective income tax rate (as a percent) | 10.00% | 12.60% | ||
Deferred tax benefits related to tax basis increase of certain assets due to reorganization | $ 2.3 | $ 2.3 | ||
Deferred tax benefit, net | 0.6 | $ 0.6 | ||
Increase (decrease) in effective income tax rate, percent | (3.40%) | |||
Increase in U.S. GILTI deferred tax liability | 1.7 | $ 0.2 | ||
Deferred tax benefit related to TRAF | $ 0.3 | $ 0.4 | ||
Deferred tax benefit related to TRAF, percent | 2.70% | |||
Effective income tax rate, prior year income taxes, percent | 1.00% | |||
Unrecognized tax benefits | 3.3 | $ 3.3 | ||
In-process research and development | ||||
Income Tax (Textuals) | ||||
Effective income tax rate, impairment losses, amount | $ 0.9 | |||
Effective income tax rate, impairment losses, percent | 22.40% | |||
Baby Powder | ||||
Income Tax (Textuals) | ||||
Effective income tax rate, accrued legal expenses, amount | $ 1.4 | |||
Effective income tax rate, accrued legal expenses, percent | 23.50% | |||
Risperdal | ||||
Income Tax (Textuals) | ||||
Effective income tax rate, accrued legal expenses, amount | $ 0.8 | |||
Effective income tax rate, accrued legal expenses, percent | 16.40% | |||
Auris Health | ||||
Income Tax (Textuals) | ||||
Increase (decrease) in effective income tax rate, percent | 1.00% |
Pensions and Other Benefit Pl_3
Pensions and Other Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Retirement Plans | ||||
Components of net periodic benefit cost | ||||
Service cost | $ 339 | $ 330 | $ 1,019 | $ 979 |
Interest cost | 192 | 238 | 578 | 715 |
Expected return on plan assets | (661) | (617) | (1,988) | (1,839) |
Amortization of prior service cost/(credit) | (46) | 0 | (136) | 1 |
Recognized actuarial losses | 314 | 224 | 944 | 669 |
Curtailments and settlements | 0 | 0 | 1 | 19 |
Net periodic benefit cost | 138 | 175 | 418 | 544 |
Other Benefit Plans | ||||
Components of net periodic benefit cost | ||||
Service cost | 78 | 72 | 232 | 216 |
Interest cost | 20 | 33 | 61 | 99 |
Expected return on plan assets | (1) | (2) | (5) | (5) |
Amortization of prior service cost/(credit) | (8) | (7) | (23) | (23) |
Recognized actuarial losses | 38 | 36 | 113 | 107 |
Curtailments and settlements | 0 | 0 | 0 | 0 |
Net periodic benefit cost | $ 127 | $ 132 | $ 378 | $ 394 |
Pensions and Other Benefit Pl_4
Pensions and Other Benefit Plans (Details) $ in Millions | 9 Months Ended |
Oct. 03, 2021USD ($) | |
U.S. | |
Defined Benefit Plan Disclosure [Line Items] | |
Contribution to pension plans | $ 71 |
International retirement plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Contribution to pension plans | $ 232 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | $ 69,580 | $ 62,978 | $ 63,278 | $ 59,471 |
Net change | (315) | 595 | (173) | 953 |
Ending Balance | 70,272 | 64,473 | 70,272 | 64,473 |
Accumulated Foreign Currency Adjustment Attributable to Parent | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | (8,938) | |||
Net change | (241) | |||
Ending Balance | (9,179) | (9,179) | ||
Accumulated Net Investment Gain (Loss) Attributable to Parent | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | 1 | |||
Net change | (1) | |||
Ending Balance | 0 | 0 | ||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | (6,957) | |||
Net change | 700 | |||
Ending Balance | (6,257) | (6,257) | ||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | 652 | |||
Net change | (631) | |||
Ending Balance | 21 | 21 | ||
AOCI Attributable to Parent | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | (15,100) | (15,533) | (15,242) | (15,891) |
Net change | (315) | 595 | (173) | 953 |
Ending Balance | $ (15,415) | $ (14,938) | $ (15,415) | $ (14,938) |
Earnings Per Share (Details)
Earnings Per Share (Details) - $ / shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Reconciliation of basic net earnings per share to diluted net earnings per share | ||||
Basic net earnings per share | $ 1.39 | $ 1.35 | $ 6.13 | $ 4.93 |
Average shares outstanding — basic | 2,632.6 | 2,632.5 | 2,632.2 | 2,633 |
Potential shares exercisable under stock option plans | 138.3 | 115.7 | 139.1 | 120.2 |
Less: shares which could be repurchased under treasury stock method | (96) | (78.9) | (96.7) | (82.4) |
Average shares outstanding — diluted | 2,674.9 | 2,669.3 | 2,674.6 | 2,670.8 |
Diluted net earnings per share | $ 1.37 | $ 1.33 | $ 6.04 | $ 4.86 |
Antidilutive securities excluded from computation of earnings per share, amount | 20 | 17 |
Segments of Business and Geog_3
Segments of Business and Geographic Areas - Sales By Segment Of Business (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Sales by segment of business | ||||
Sales to customers | $ 23,338 | $ 21,082 | $ 68,971 | $ 60,109 |
Percent Change (as a percent) | 10.70% | 14.70% | ||
U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 11,963 | 11,086 | $ 34,993 | 31,324 |
Percent Change (as a percent) | 7.90% | 11.70% | ||
International | ||||
Sales by segment of business | ||||
Sales to customers | $ 11,375 | 9,996 | $ 33,978 | 28,785 |
Percent Change (as a percent) | 13.80% | 18.00% | ||
Consumer Health | ||||
Sales by segment of business | ||||
Sales to customers | $ 3,700 | 3,514 | $ 10,978 | 10,435 |
Percent Change (as a percent) | 5.30% | 5.20% | ||
Consumer Health | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 1,625 | 1,556 | $ 4,987 | 4,853 |
Percent Change (as a percent) | 4.50% | 2.80% | ||
Consumer Health | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 2,075 | 1,958 | $ 5,991 | 5,582 |
Percent Change (as a percent) | 5.90% | 7.30% | ||
Consumer Health | OTC | ||||
Sales by segment of business | ||||
Sales to customers | $ 1,372 | 1,142 | $ 3,854 | 3,639 |
Percent Change (as a percent) | 20.10% | 5.90% | ||
Consumer Health | OTC | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 686 | 601 | $ 1,960 | 1,917 |
Percent Change (as a percent) | 14.00% | 2.20% | ||
Consumer Health | OTC | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 686 | 541 | $ 1,894 | 1,722 |
Percent Change (as a percent) | 26.90% | 10.00% | ||
Consumer Health | Skin Health/Beauty | ||||
Sales by segment of business | ||||
Sales to customers | $ 1,124 | 1,149 | $ 3,457 | 3,273 |
Percent Change (as a percent) | (2.20%) | 5.60% | ||
Consumer Health | Skin Health/Beauty | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 569 | 572 | $ 1,862 | 1,767 |
Percent Change (as a percent) | (0.50%) | 5.40% | ||
Consumer Health | Skin Health/Beauty | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 555 | 577 | $ 1,595 | 1,506 |
Percent Change (as a percent) | (3.80%) | 5.90% | ||
Consumer Health | Oral Care | ||||
Sales by segment of business | ||||
Sales to customers | $ 398 | 412 | $ 1,240 | 1,204 |
Percent Change (as a percent) | (3.30%) | 3.00% | ||
Consumer Health | Oral Care | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 150 | 164 | $ 478 | 510 |
Percent Change (as a percent) | (8.40%) | (6.20%) | ||
Consumer Health | Oral Care | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 248 | 248 | $ 762 | 694 |
Percent Change (as a percent) | 0.10% | 9.90% | ||
Consumer Health | Baby Care | ||||
Sales by segment of business | ||||
Sales to customers | $ 391 | 393 | $ 1,167 | 1,110 |
Percent Change (as a percent) | (0.30%) | 5.20% | ||
Consumer Health | Baby Care | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 95 | 91 | $ 288 | 279 |
Percent Change (as a percent) | 5.20% | 3.30% | ||
Consumer Health | Baby Care | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 296 | 302 | $ 879 | 831 |
Percent Change (as a percent) | (2.00%) | 5.80% | ||
Consumer Health | Women's Health | ||||
Sales by segment of business | ||||
Sales to customers | $ 232 | 230 | $ 684 | 664 |
Percent Change (as a percent) | 0.80% | 3.00% | ||
Consumer Health | Women's Health | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 3 | 3 | $ 9 | 10 |
Percent Change (as a percent) | 20.10% | (5.70%) | ||
Consumer Health | Women's Health | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 229 | 227 | $ 675 | 654 |
Percent Change (as a percent) | 0.50% | 3.10% | ||
Consumer Health | Wound Care/Other | ||||
Sales by segment of business | ||||
Sales to customers | $ 182 | 189 | $ 575 | 545 |
Percent Change (as a percent) | (3.50%) | 5.40% | ||
Consumer Health | Wound Care/Other | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 122 | 125 | $ 390 | 370 |
Percent Change (as a percent) | (2.60%) | 5.30% | ||
Consumer Health | Wound Care/Other | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 61 | 64 | $ 186 | 175 |
Percent Change (as a percent) | (5.20%) | 5.80% | ||
PHARMACEUTICAL | ||||
Sales by segment of business | ||||
Sales to customers | $ 12,994 | 11,418 | $ 37,792 | 33,304 |
Percent Change (as a percent) | 13.80% | 13.50% | ||
PHARMACEUTICAL | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 7,221 | 6,438 | $ 20,536 | 18,619 |
Percent Change (as a percent) | 12.20% | 10.30% | ||
PHARMACEUTICAL | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 5,773 | 4,980 | $ 17,256 | 14,685 |
Percent Change (as a percent) | 15.90% | 17.50% | ||
PHARMACEUTICAL | Immunology | ||||
Sales by segment of business | ||||
Sales to customers | $ 4,250 | 3,789 | $ 12,395 | 10,950 |
Percent Change (as a percent) | 12.20% | 13.20% | ||
PHARMACEUTICAL | Immunology | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 2,771 | 2,558 | $ 7,932 | 7,330 |
Percent Change (as a percent) | 8.30% | 8.20% | ||
PHARMACEUTICAL | Immunology | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 1,480 | 1,230 | $ 4,464 | 3,619 |
Percent Change (as a percent) | 20.30% | 23.30% | ||
PHARMACEUTICAL | Immunology | REMICADE® | ||||
Sales by segment of business | ||||
Sales to customers | $ 761 | 921 | $ 2,426 | 2,846 |
Percent Change (as a percent) | (17.40%) | (14.80%) | ||
PHARMACEUTICAL | Immunology | REMICADE® | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 480 | 634 | $ 1,508 | 1,852 |
Percent Change (as a percent) | (24.30%) | (18.60%) | ||
PHARMACEUTICAL | Immunology | REMICADE® | U.S. Exports | ||||
Sales by segment of business | ||||
Sales to customers | $ 47 | 78 | $ 197 | 321 |
Percent Change (as a percent) | (40.20%) | (38.70%) | ||
PHARMACEUTICAL | Immunology | REMICADE® | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 234 | 209 | $ 721 | 673 |
Percent Change (as a percent) | 12.20% | 7.10% | ||
PHARMACEUTICAL | Immunology | SIMPONI / SIMPONI ARIA® | ||||
Sales by segment of business | ||||
Sales to customers | $ 571 | 592 | $ 1,717 | 1,667 |
Percent Change (as a percent) | (3.30%) | 3.00% | ||
PHARMACEUTICAL | Immunology | SIMPONI / SIMPONI ARIA® | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 295 | 312 | $ 840 | 840 |
Percent Change (as a percent) | (5.30%) | 0.00% | ||
PHARMACEUTICAL | Immunology | SIMPONI / SIMPONI ARIA® | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 276 | 280 | $ 877 | 827 |
Percent Change (as a percent) | (1.10%) | 6.10% | ||
PHARMACEUTICAL | Immunology | STELARA® | ||||
Sales by segment of business | ||||
Sales to customers | $ 2,378 | 1,947 | $ 6,800 | 5,463 |
Percent Change (as a percent) | 22.20% | 24.50% | ||
PHARMACEUTICAL | Immunology | STELARA® | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 1,569 | 1,313 | $ 4,396 | 3,668 |
Percent Change (as a percent) | 19.50% | 19.90% | ||
PHARMACEUTICAL | Immunology | STELARA® | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 809 | 634 | $ 2,404 | 1,795 |
Percent Change (as a percent) | 27.70% | 33.90% | ||
PHARMACEUTICAL | Immunology | TREMFYA® | ||||
Sales by segment of business | ||||
Sales to customers | $ 537 | 327 | $ 1,434 | 965 |
Percent Change (as a percent) | 64.10% | 48.50% | ||
PHARMACEUTICAL | Immunology | TREMFYA® | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 376 | 222 | $ 975 | 650 |
Percent Change (as a percent) | 69.70% | 50.10% | ||
PHARMACEUTICAL | Immunology | TREMFYA® | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 161 | 105 | $ 459 | 316 |
Percent Change (as a percent) | 52.50% | 45.40% | ||
PHARMACEUTICAL | Immunology | OTHER IMMUNOLOGY | ||||
Sales by segment of business | ||||
Sales to customers | $ 3 | 3 | $ 18 | 9 |
Percent Change (as a percent) | (26.40%) | 91.60% | ||
PHARMACEUTICAL | Immunology | OTHER IMMUNOLOGY | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 3 | 0 | $ 15 | 0 |
PHARMACEUTICAL | Immunology | OTHER IMMUNOLOGY | International | ||||
Sales by segment of business | ||||
Sales to customers | 0 | 3 | $ 3 | 9 |
Percent Change (as a percent) | (68.60%) | |||
PHARMACEUTICAL | Infectious Diseases | ||||
Sales by segment of business | ||||
Sales to customers | $ 1,389 | 864 | $ 3,424 | 2,662 |
Percent Change (as a percent) | 60.60% | 28.60% | ||
PHARMACEUTICAL | Infectious Diseases | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 679 | 413 | $ 1,635 | 1,265 |
Percent Change (as a percent) | 64.30% | 29.20% | ||
PHARMACEUTICAL | Infectious Diseases | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 709 | 451 | $ 1,788 | 1,397 |
Percent Change (as a percent) | 57.20% | 28.00% | ||
PHARMACEUTICAL | Infectious Diseases | COVID-19 | ||||
Sales by segment of business | ||||
Sales to customers | $ 502 | 0 | $ 766 | 0 |
PHARMACEUTICAL | Infectious Diseases | COVID-19 | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | 270 | 0 | 421 | 0 |
PHARMACEUTICAL | Infectious Diseases | COVID-19 | International | ||||
Sales by segment of business | ||||
Sales to customers | 233 | 0 | 346 | 0 |
PHARMACEUTICAL | Infectious Diseases | EDURANT® / rilpivirine | ||||
Sales by segment of business | ||||
Sales to customers | $ 259 | 236 | $ 764 | 716 |
Percent Change (as a percent) | 9.60% | 6.70% | ||
PHARMACEUTICAL | Infectious Diseases | EDURANT® / rilpivirine | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 12 | 11 | $ 31 | 33 |
Percent Change (as a percent) | 8.40% | (4.80%) | ||
PHARMACEUTICAL | Infectious Diseases | EDURANT® / rilpivirine | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 247 | 226 | $ 733 | 684 |
Percent Change (as a percent) | 9.70% | 7.20% | ||
PHARMACEUTICAL | Infectious Diseases | PREZISTA® / PREZCOBIX® / REZOLSTA® / SYMTUZA® | ||||
Sales by segment of business | ||||
Sales to customers | $ 517 | 526 | $ 1,568 | 1,615 |
Percent Change (as a percent) | (1.70%) | (2.90%) | ||
PHARMACEUTICAL | Infectious Diseases | PREZISTA® / PREZCOBIX® / REZOLSTA® / SYMTUZA® | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 380 | 379 | $ 1,128 | 1,154 |
Percent Change (as a percent) | 0.40% | (2.20%) | ||
PHARMACEUTICAL | Infectious Diseases | PREZISTA® / PREZCOBIX® / REZOLSTA® / SYMTUZA® | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 137 | 147 | $ 440 | 461 |
Percent Change (as a percent) | (7.10%) | (4.60%) | ||
PHARMACEUTICAL | Infectious Diseases | OTHER INFECTIOUS DISEASES | ||||
Sales by segment of business | ||||
Sales to customers | $ 110 | 102 | $ 325 | 331 |
Percent Change (as a percent) | 7.80% | (1.80%) | ||
PHARMACEUTICAL | Infectious Diseases | OTHER INFECTIOUS DISEASES | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 18 | 24 | $ 55 | 79 |
Percent Change (as a percent) | (26.00%) | (29.60%) | ||
PHARMACEUTICAL | Infectious Diseases | OTHER INFECTIOUS DISEASES | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 93 | 78 | $ 270 | 252 |
Percent Change (as a percent) | 18.30% | 6.90% | ||
PHARMACEUTICAL | Neuroscience | ||||
Sales by segment of business | ||||
Sales to customers | $ 1,689 | 1,605 | $ 5,218 | 4,850 |
Percent Change (as a percent) | 5.30% | 7.60% | ||
PHARMACEUTICAL | Neuroscience | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 835 | 759 | $ 2,448 | 2,285 |
Percent Change (as a percent) | 10.20% | 7.20% | ||
PHARMACEUTICAL | Neuroscience | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 854 | 846 | $ 2,770 | 2,565 |
Percent Change (as a percent) | 0.80% | 8.00% | ||
PHARMACEUTICAL | Neuroscience | CONCERTA® / methylphenidate | ||||
Sales by segment of business | ||||
Sales to customers | $ 157 | 149 | $ 489 | 469 |
Percent Change (as a percent) | 4.50% | 4.10% | ||
PHARMACEUTICAL | Neuroscience | CONCERTA® / methylphenidate | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 35 | 43 | $ 117 | 150 |
Percent Change (as a percent) | (19.50%) | (22.10%) | ||
PHARMACEUTICAL | Neuroscience | CONCERTA® / methylphenidate | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 122 | 107 | $ 372 | 319 |
Percent Change (as a percent) | 14.20% | 16.40% | ||
PHARMACEUTICAL | Neuroscience | INVEGA SUSTENNA® / XEPLION® / INVEGA TRINZA® / TREVICTA® | ||||
Sales by segment of business | ||||
Sales to customers | $ 1,004 | 926 | $ 2,994 | 2,688 |
Percent Change (as a percent) | 8.50% | 11.40% | ||
PHARMACEUTICAL | Neuroscience | INVEGA SUSTENNA® / XEPLION® / INVEGA TRINZA® / TREVICTA® | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 648 | 585 | $ 1,882 | 1,704 |
Percent Change (as a percent) | 11.00% | 10.40% | ||
PHARMACEUTICAL | Neuroscience | INVEGA SUSTENNA® / XEPLION® / INVEGA TRINZA® / TREVICTA® | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 355 | 341 | $ 1,111 | 983 |
Percent Change (as a percent) | 4.30% | 13.00% | ||
PHARMACEUTICAL | Neuroscience | RISPERDAL CONSTA® | ||||
Sales by segment of business | ||||
Sales to customers | $ 140 | 152 | $ 452 | 475 |
Percent Change (as a percent) | (8.40%) | (4.90%) | ||
PHARMACEUTICAL | Neuroscience | RISPERDAL CONSTA® | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 71 | 70 | $ 210 | 220 |
Percent Change (as a percent) | 1.30% | (4.70%) | ||
PHARMACEUTICAL | Neuroscience | RISPERDAL CONSTA® | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 69 | 81 | $ 242 | 254 |
Percent Change (as a percent) | (16.70%) | (5.10%) | ||
PHARMACEUTICAL | Neuroscience | OTHER NEUROSCIENCE | ||||
Sales by segment of business | ||||
Sales to customers | $ 388 | 377 | $ 1,284 | 1,218 |
Percent Change (as a percent) | 3.10% | 5.50% | ||
PHARMACEUTICAL | Neuroscience | OTHER NEUROSCIENCE | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 81 | 60 | $ 239 | 210 |
Percent Change (as a percent) | 34.70% | 13.90% | ||
PHARMACEUTICAL | Neuroscience | OTHER NEUROSCIENCE | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 307 | 317 | $ 1,045 | 1,008 |
Percent Change (as a percent) | (2.90%) | 3.70% | ||
PHARMACEUTICAL | Oncology | ||||
Sales by segment of business | ||||
Sales to customers | $ 3,665 | 3,129 | $ 10,770 | 8,933 |
Percent Change (as a percent) | 17.10% | 20.60% | ||
PHARMACEUTICAL | Oncology | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 1,525 | 1,267 | $ 4,364 | 3,623 |
Percent Change (as a percent) | 20.30% | 20.40% | ||
PHARMACEUTICAL | Oncology | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 2,140 | 1,862 | $ 6,406 | 5,310 |
Percent Change (as a percent) | 14.90% | 20.60% | ||
PHARMACEUTICAL | Oncology | DARZALEX® | ||||
Sales by segment of business | ||||
Sales to customers | $ 1,580 | 1,099 | $ 4,378 | 2,937 |
Percent Change (as a percent) | 43.70% | 49.10% | ||
PHARMACEUTICAL | Oncology | DARZALEX® | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 841 | 585 | $ 2,302 | 1,540 |
Percent Change (as a percent) | 43.70% | 49.50% | ||
PHARMACEUTICAL | Oncology | DARZALEX® | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 739 | 514 | $ 2,076 | 1,397 |
Percent Change (as a percent) | 43.70% | 48.60% | ||
PHARMACEUTICAL | Oncology | ERLEADA | ||||
Sales by segment of business | ||||
Sales to customers | $ 344 | 206 | $ 907 | 519 |
Percent Change (as a percent) | 66.70% | 74.70% | ||
PHARMACEUTICAL | Oncology | ERLEADA | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 214 | 152 | $ 578 | 407 |
Percent Change (as a percent) | 40.50% | 41.80% | ||
PHARMACEUTICAL | Oncology | ERLEADA | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 130 | 55 | $ 329 | 112 |
PHARMACEUTICAL | Oncology | IMBRUVICA® | ||||
Sales by segment of business | ||||
Sales to customers | $ 1,066 | 1,031 | $ 3,307 | 3,011 |
Percent Change (as a percent) | 3.50% | 9.90% | ||
PHARMACEUTICAL | Oncology | IMBRUVICA® | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 413 | 450 | $ 1,311 | 1,329 |
Percent Change (as a percent) | (8.30%) | (1.30%) | ||
PHARMACEUTICAL | Oncology | IMBRUVICA® | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 654 | 581 | $ 1,996 | 1,682 |
Percent Change (as a percent) | 12.60% | 18.70% | ||
PHARMACEUTICAL | Oncology | ZYTIGA® / abiraterone acetate | ||||
Sales by segment of business | ||||
Sales to customers | $ 548 | 590 | $ 1,749 | 1,848 |
Percent Change (as a percent) | (7.20%) | (5.40%) | ||
PHARMACEUTICAL | Oncology | ZYTIGA® / abiraterone acetate | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 25 | 58 | $ 96 | 284 |
Percent Change (as a percent) | (57.00%) | (66.20%) | ||
PHARMACEUTICAL | Oncology | ZYTIGA® / abiraterone acetate | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 523 | 532 | $ 1,653 | 1,564 |
Percent Change (as a percent) | (1.80%) | 5.70% | ||
PHARMACEUTICAL | Oncology | OTHER ONCOLOGY(1) | ||||
Sales by segment of business | ||||
Sales to customers | $ 126 | 203 | $ 428 | 619 |
Percent Change (as a percent) | (37.60%) | (30.70%) | ||
PHARMACEUTICAL | Oncology | OTHER ONCOLOGY(1) | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 32 | 21 | $ 76 | 63 |
Percent Change (as a percent) | 49.60% | 21.00% | ||
PHARMACEUTICAL | Oncology | OTHER ONCOLOGY(1) | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 94 | 181 | $ 352 | 556 |
Percent Change (as a percent) | (48.00%) | (36.60%) | ||
PHARMACEUTICAL | Pulmonary Hypertension | ||||
Sales by segment of business | ||||
Sales to customers | $ 868 | 749 | $ 2,599 | 2,283 |
Percent Change (as a percent) | 15.90% | 13.90% | ||
PHARMACEUTICAL | Pulmonary Hypertension | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 610 | 510 | $ 1,778 | 1,541 |
Percent Change (as a percent) | 19.70% | 15.40% | ||
PHARMACEUTICAL | Pulmonary Hypertension | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 258 | 239 | $ 821 | 742 |
Percent Change (as a percent) | 7.90% | 10.70% | ||
PHARMACEUTICAL | Pulmonary Hypertension | OPSUMIT® | ||||
Sales by segment of business | ||||
Sales to customers | $ 458 | 392 | $ 1,371 | 1,187 |
Percent Change (as a percent) | 17.00% | 15.50% | ||
PHARMACEUTICAL | Pulmonary Hypertension | OPSUMIT® | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 299 | 244 | $ 861 | 729 |
Percent Change (as a percent) | 22.80% | 18.20% | ||
PHARMACEUTICAL | Pulmonary Hypertension | OPSUMIT® | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 159 | 148 | $ 510 | 458 |
Percent Change (as a percent) | 7.40% | 11.30% | ||
PHARMACEUTICAL | Pulmonary Hypertension | UPTRAVI® | ||||
Sales by segment of business | ||||
Sales to customers | $ 309 | 260 | $ 927 | 792 |
Percent Change (as a percent) | 19.00% | 17.10% | ||
PHARMACEUTICAL | Pulmonary Hypertension | UPTRAVI® | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 265 | 226 | $ 792 | 692 |
Percent Change (as a percent) | 17.30% | 14.60% | ||
PHARMACEUTICAL | Pulmonary Hypertension | UPTRAVI® | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 44 | 34 | $ 135 | 100 |
Percent Change (as a percent) | 30.40% | 34.60% | ||
PHARMACEUTICAL | Pulmonary Hypertension | Other | ||||
Sales by segment of business | ||||
Sales to customers | $ 101 | 97 | $ 301 | 304 |
Percent Change (as a percent) | 3.40% | (1.10%) | ||
PHARMACEUTICAL | Pulmonary Hypertension | Other | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 47 | 40 | $ 125 | 121 |
Percent Change (as a percent) | 14.40% | 2.80% | ||
PHARMACEUTICAL | Pulmonary Hypertension | Other | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 54 | 57 | $ 176 | 183 |
Percent Change (as a percent) | (4.40%) | (3.70%) | ||
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | ||||
Sales by segment of business | ||||
Sales to customers | $ 1,133 | 1,281 | $ 3,386 | 3,625 |
Percent Change (as a percent) | (11.50%) | (6.60%) | ||
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 800 | 931 | $ 2,379 | 2,574 |
Percent Change (as a percent) | (14.00%) | (7.60%) | ||
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 333 | 351 | $ 1,007 | 1,052 |
Percent Change (as a percent) | (5.10%) | (4.20%) | ||
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | XARELTO® | ||||
Sales by segment of business | ||||
Sales to customers | $ 636 | 630 | $ 1,794 | 1,716 |
Percent Change (as a percent) | 0.80% | 4.50% | ||
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | XARELTO® | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 636 | 630 | $ 1,794 | 1,716 |
Percent Change (as a percent) | 0.80% | 4.50% | ||
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | XARELTO® | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 0 | 0 | $ 0 | 0 |
Percent Change (as a percent) | 0.00% | 0.00% | ||
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | INVOKANA® / INVOKAMET® | ||||
Sales by segment of business | ||||
Sales to customers | $ 133 | 224 | $ 443 | 578 |
Percent Change (as a percent) | (40.30%) | (23.40%) | ||
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | INVOKANA® / INVOKAMET® | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 66 | 156 | $ 249 | 405 |
Percent Change (as a percent) | (57.40%) | (38.40%) | ||
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | INVOKANA® / INVOKAMET® | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 67 | 68 | $ 194 | 173 |
Percent Change (as a percent) | (1.00%) | 11.90% | ||
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | PROCRIT® / EPREX® | ||||
Sales by segment of business | ||||
Sales to customers | $ 112 | 132 | $ 366 | 423 |
Percent Change (as a percent) | (14.60%) | (13.40%) | ||
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | PROCRIT® / EPREX® | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 47 | 69 | $ 168 | 215 |
Percent Change (as a percent) | (30.90%) | (21.70%) | ||
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | PROCRIT® / EPREX® | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 65 | 63 | $ 198 | 208 |
Percent Change (as a percent) | 3.10% | (4.70%) | ||
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | Other | ||||
Sales by segment of business | ||||
Sales to customers | $ 251 | 294 | $ 783 | 908 |
Percent Change (as a percent) | (14.80%) | (13.80%) | ||
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | Other | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 51 | 75 | $ 168 | 238 |
Percent Change (as a percent) | (32.60%) | (29.30%) | ||
PHARMACEUTICAL | Cardiovascular / Metabolism / Other | Other | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 200 | 219 | $ 615 | 670 |
Percent Change (as a percent) | (8.70%) | (8.30%) | ||
MEDICAL DEVICES | ||||
Sales by segment of business | ||||
Sales to customers | $ 6,644 | 6,150 | $ 20,201 | 16,370 |
Percent Change (as a percent) | 8.00% | 23.40% | ||
MEDICAL DEVICES | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 3,117 | 3,092 | $ 9,470 | 7,852 |
Percent Change (as a percent) | 0.80% | 20.60% | ||
MEDICAL DEVICES | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 3,527 | 3,058 | $ 10,731 | 8,518 |
Percent Change (as a percent) | 15.40% | 26.00% | ||
MEDICAL DEVICES | Interventional Solutions | ||||
Sales by segment of business | ||||
Sales to customers | $ 957 | 836 | $ 2,952 | 2,153 |
Percent Change (as a percent) | 14.50% | 37.10% | ||
MEDICAL DEVICES | Interventional Solutions | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 444 | 399 | $ 1,353 | 1,019 |
Percent Change (as a percent) | 11.10% | 32.70% | ||
MEDICAL DEVICES | Interventional Solutions | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 513 | 437 | $ 1,599 | 1,134 |
Percent Change (as a percent) | 17.70% | 41.10% | ||
MEDICAL DEVICES | Orthopaedics | ||||
Sales by segment of business | ||||
Sales to customers | $ 2,093 | 2,083 | $ 6,433 | 5,572 |
Percent Change (as a percent) | 0.50% | 15.40% | ||
MEDICAL DEVICES | Orthopaedics | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 1,249 | 1,308 | $ 3,821 | 3,427 |
Percent Change (as a percent) | (4.50%) | 11.50% | ||
MEDICAL DEVICES | Orthopaedics | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 843 | 774 | $ 2,611 | 2,145 |
Percent Change (as a percent) | 8.80% | 21.70% | ||
MEDICAL DEVICES | Orthopaedics | HIPS | ||||
Sales by segment of business | ||||
Sales to customers | $ 356 | 345 | $ 1,105 | 908 |
Percent Change (as a percent) | 3.30% | 21.80% | ||
MEDICAL DEVICES | Orthopaedics | HIPS | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 210 | 221 | $ 654 | 564 |
Percent Change (as a percent) | (5.30%) | 15.90% | ||
MEDICAL DEVICES | Orthopaedics | HIPS | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 146 | 124 | $ 451 | 344 |
Percent Change (as a percent) | 18.80% | 31.30% | ||
MEDICAL DEVICES | Orthopaedics | KNEES | ||||
Sales by segment of business | ||||
Sales to customers | $ 316 | 308 | $ 983 | 825 |
Percent Change (as a percent) | 2.80% | 19.20% | ||
MEDICAL DEVICES | Orthopaedics | KNEES | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 184 | 205 | $ 579 | 527 |
Percent Change (as a percent) | (9.80%) | 10.00% | ||
MEDICAL DEVICES | Orthopaedics | KNEES | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 131 | 102 | $ 403 | 298 |
Percent Change (as a percent) | 28.10% | 35.40% | ||
MEDICAL DEVICES | Orthopaedics | TRAUMA | ||||
Sales by segment of business | ||||
Sales to customers | $ 715 | 685 | $ 2,157 | 1,892 |
Percent Change (as a percent) | 4.20% | 14.00% | ||
MEDICAL DEVICES | Orthopaedics | TRAUMA | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 455 | 433 | $ 1,352 | 1,194 |
Percent Change (as a percent) | 5.30% | 13.30% | ||
MEDICAL DEVICES | Orthopaedics | TRAUMA | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 260 | 253 | $ 805 | 698 |
Percent Change (as a percent) | 2.40% | 15.20% | ||
MEDICAL DEVICES | Orthopaedics | SPINE, SPORTS & OTHER | ||||
Sales by segment of business | ||||
Sales to customers | $ 705 | 745 | $ 2,187 | 1,947 |
Percent Change (as a percent) | (5.30%) | 12.30% | ||
MEDICAL DEVICES | Orthopaedics | SPINE, SPORTS & OTHER | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 400 | 449 | $ 1,236 | 1,142 |
Percent Change (as a percent) | (11.10%) | 8.20% | ||
MEDICAL DEVICES | Orthopaedics | SPINE, SPORTS & OTHER | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 306 | 295 | $ 952 | 805 |
Percent Change (as a percent) | 3.50% | 18.20% | ||
MEDICAL DEVICES | Surgery | ||||
Sales by segment of business | ||||
Sales to customers | $ 2,405 | 2,152 | $ 7,299 | 5,803 |
Percent Change (as a percent) | 11.80% | 25.80% | ||
MEDICAL DEVICES | Surgery | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 948 | 913 | $ 2,881 | 2,247 |
Percent Change (as a percent) | 3.90% | 28.20% | ||
MEDICAL DEVICES | Surgery | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 1,457 | 1,239 | $ 4,418 | 3,556 |
Percent Change (as a percent) | 17.60% | 24.20% | ||
MEDICAL DEVICES | Surgery | ADVANCED | ||||
Sales by segment of business | ||||
Sales to customers | $ 1,144 | 1,000 | $ 3,430 | 2,723 |
Percent Change (as a percent) | 14.60% | 26.00% | ||
MEDICAL DEVICES | Surgery | ADVANCED | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 440 | 421 | $ 1,304 | 1,079 |
Percent Change (as a percent) | 4.60% | 20.90% | ||
MEDICAL DEVICES | Surgery | ADVANCED | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 705 | 579 | $ 2,126 | 1,644 |
Percent Change (as a percent) | 21.80% | 29.30% | ||
MEDICAL DEVICES | Surgery | GENERAL | ||||
Sales by segment of business | ||||
Sales to customers | $ 1,261 | 1,152 | $ 3,869 | 3,080 |
Percent Change (as a percent) | 9.40% | 25.60% | ||
MEDICAL DEVICES | Surgery | GENERAL | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 508 | 492 | $ 1,577 | 1,168 |
Percent Change (as a percent) | 3.30% | 35.00% | ||
MEDICAL DEVICES | Surgery | GENERAL | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 752 | 660 | $ 2,292 | 1,912 |
Percent Change (as a percent) | 13.90% | 19.90% | ||
MEDICAL DEVICES | Vision | ||||
Sales by segment of business | ||||
Sales to customers | $ 1,189 | 1,081 | $ 3,517 | 2,843 |
Percent Change (as a percent) | 10.10% | 23.70% | ||
MEDICAL DEVICES | Vision | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 475 | 473 | $ 1,414 | 1,160 |
Percent Change (as a percent) | 0.60% | 21.90% | ||
MEDICAL DEVICES | Vision | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 714 | 608 | $ 2,103 | 1,683 |
Percent Change (as a percent) | 17.40% | 25.00% | ||
MEDICAL DEVICES | Vision | CONTACT LENSES / OTHER | ||||
Sales by segment of business | ||||
Sales to customers | $ 882 | 830 | $ 2,607 | 2,198 |
Percent Change (as a percent) | 6.20% | 18.60% | ||
MEDICAL DEVICES | Vision | CONTACT LENSES / OTHER | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 359 | 375 | $ 1,082 | 924 |
Percent Change (as a percent) | (4.30%) | 17.00% | ||
MEDICAL DEVICES | Vision | CONTACT LENSES / OTHER | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 522 | 455 | $ 1,525 | 1,274 |
Percent Change (as a percent) | 14.90% | 19.80% | ||
MEDICAL DEVICES | Vision | SURGICAL | ||||
Sales by segment of business | ||||
Sales to customers | $ 308 | 251 | $ 910 | 645 |
Percent Change (as a percent) | 22.70% | 41.10% | ||
MEDICAL DEVICES | Vision | SURGICAL | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 117 | 98 | $ 333 | 236 |
Percent Change (as a percent) | 19.60% | 41.10% | ||
MEDICAL DEVICES | Vision | SURGICAL | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 191 | $ 153 | $ 577 | $ 409 |
Percent Change (as a percent) | 24.70% | 41.10% |
Segments of Business and Geog_4
Segments of Business and Geographic Areas - Operating Profit by Segment of Business (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | Jan. 03, 2021 | |
Segment Reporting Information [Line Items] | |||||
Percentage Change in Operating Income Loss | (12.50%) | 20.80% | |||
Worldwide income before tax | $ 3,849 | $ 4,401 | $ 17,940 | $ 14,850 | |
Amount prepaid and due to manufacturers | 1,200 | ||||
Reversal of contingent consideration | 0 | 1,148 | |||
Restructuring charges | 60 | 68 | 169 | 187 | |
Consumer Health | |||||
Segment Reporting Information [Line Items] | |||||
Litigation expense | 1,400 | 500 | 1,500 | 1,200 | |
Restructuring charges | 100 | 100 | |||
PHARMACEUTICAL | |||||
Segment Reporting Information [Line Items] | |||||
Litigation expense | 800 | 1,000 | 700 | 1,000 | |
Restructuring charges | 100 | 100 | |||
Medical Devices | |||||
Segment Reporting Information [Line Items] | |||||
Restructuring charges | 100 | 100 | 200 | 200 | |
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Total Segment Operating Income | $ 4,046 | 4,640 | $ 18,592 | 15,461 | |
Percentage Change in Operating Income Loss | (12.80%) | 20.30% | |||
Operating Segments | Consumer Health | |||||
Segment Reporting Information [Line Items] | |||||
Total Segment Operating Income | $ (636) | 191 | $ 956 | 993 | |
Percentage Change in Operating Income Loss | (3.70%) | ||||
Amortization | 100 | 100 | $ 300 | 300 | |
Operating Segments | PHARMACEUTICAL | |||||
Segment Reporting Information [Line Items] | |||||
Total Segment Operating Income | $ 4,259 | 3,439 | $ 13,838 | 11,787 | |
Percentage Change in Operating Income Loss | 23.80% | 17.40% | |||
Amortization | $ 800 | 800 | $ 2,500 | 2,400 | |
Gain (loss) on disposition of assets | 600 | ||||
Unrealized gain (loss) on securities | 100 | 200 | 200 | ||
Operating Segments | Medical Devices | |||||
Segment Reporting Information [Line Items] | |||||
Total Segment Operating Income | $ 423 | 1,010 | $ 3,798 | 2,681 | |
Percentage Change in Operating Income Loss | (58.10%) | 41.70% | |||
Amortization | $ 300 | 200 | $ 800 | 700 | |
Unrealized gain (loss) on securities | 100 | 100 | |||
In-process research and development expense | 900 | 900 | |||
Corporate, Non-Segment | |||||
Segment Reporting Information [Line Items] | |||||
Total Segment Operating Income | $ 197 | 239 | $ 652 | 611 | |
Auris Health | |||||
Segment Reporting Information [Line Items] | |||||
Reversal of contingent consideration | $ 1,148 | ||||
Other Income | Auris Health | Medical Devices | |||||
Segment Reporting Information [Line Items] | |||||
Reversal of contingent consideration | $ 200 | $ 1,100 |
Segments of Business and Geog_5
Segments of Business and Geographic Areas - Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Sales by geographic area | ||||
Sales | $ 23,338 | $ 21,082 | $ 68,971 | $ 60,109 |
Percentage Change In Sales By Geographic Area | 10.70% | 14.70% | ||
United States | ||||
Sales by geographic area | ||||
Sales | $ 11,963 | 11,086 | $ 34,993 | 31,324 |
Percentage Change In Sales By Geographic Area | 7.90% | 11.70% | ||
Europe | ||||
Sales by geographic area | ||||
Sales | $ 5,587 | 4,819 | $ 16,669 | 13,709 |
Percentage Change In Sales By Geographic Area | 15.90% | 21.60% | ||
Western Hemisphere, excluding U.S. | ||||
Sales by geographic area | ||||
Sales | $ 1,500 | 1,296 | $ 4,291 | 3,931 |
Percentage Change In Sales By Geographic Area | 15.70% | 9.20% | ||
Asia-Pacific, Africa | ||||
Sales by geographic area | ||||
Sales | $ 4,288 | $ 3,881 | $ 13,018 | $ 11,145 |
Percentage Change In Sales By Geographic Area | 10.50% | 16.80% |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Apr. 04, 2021 | Mar. 29, 2020 | Oct. 03, 2021 | Jan. 03, 2021 | |
Business Acquisition [Line Items] | ||||
Goodwill (Note 3) | $ 35,569 | $ 36,393 | ||
bermekimab | ||||
Business Acquisition [Line Items] | ||||
Business acquisition cost | $ 800 | |||
Intangible assets | 800 | |||
Verb Surgical Inc. | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | 400 | |||
Goodwill (Note 3) | 200 | |||
Other assets | 200 | |||
Liabilities assumed | 300 | |||
Fair value of previously held equity investment | $ 400 | |||
Evra and Doxil | ||||
Business Acquisition [Line Items] | ||||
Gain (loss) on disposition of assets | $ 600 |
Legal Proceedings (Details)
Legal Proceedings (Details) $ in Millions | Jan. 20, 2020USD ($) | Oct. 31, 2021USD ($)vote | Jun. 30, 2021USD ($) | Jun. 28, 2020USD ($) | Jan. 31, 2020USD ($) | Oct. 31, 2019USD ($) | Jul. 31, 2018USD ($) | Oct. 03, 2021USD ($)claimantpatient | May 31, 2021claimant | Oct. 31, 2020USD ($) | Apr. 30, 2015claim |
ASR | |||||||||||
Legal Proceeding (Textuals) | |||||||||||
Product liability contingency, number of claimants | claimant | 300 | ||||||||||
Pinnacle Acetabular Cup System | |||||||||||
Legal Proceeding (Textuals) | |||||||||||
Product liability contingency, number of claimants | claimant | 5,400 | ||||||||||
Pelvic Meshes | |||||||||||
Legal Proceeding (Textuals) | |||||||||||
Product liability contingency, number of claimants | claimant | 10,700 | ||||||||||
Risperdal | |||||||||||
Legal Proceeding (Textuals) | |||||||||||
Product liability contingency, number of claimants | claimant | 9,000 | ||||||||||
XARELTO® | |||||||||||
Legal Proceeding (Textuals) | |||||||||||
Product liability contingency, number of claimants | claimant | 6,600 | ||||||||||
Talc | |||||||||||
Legal Proceeding (Textuals) | |||||||||||
Product liability contingency, number of claimants | claimant | 38,200 | ||||||||||
Invokana | |||||||||||
Legal Proceeding (Textuals) | |||||||||||
Product liability contingency, number of claimants | claimant | 100 | ||||||||||
Physiomesh | |||||||||||
Legal Proceeding (Textuals) | |||||||||||
Product liability contingency, number of claimants | claimant | 4,700 | ||||||||||
Opioid | |||||||||||
Legal Proceeding (Textuals) | |||||||||||
Product liability contingency, number of claimants | claimant | 3,300 | ||||||||||
Contact Lenses | |||||||||||
Legal Proceeding (Textuals) | |||||||||||
Number of pending claims | claim | 30 | ||||||||||
Settled Litigation | Opioid | |||||||||||
Legal Proceeding (Textuals) | |||||||||||
Damages awarded | $ 5,000 | ||||||||||
Damages awarded, including settlement for related issues, reimbursement for legal fees, and removal from related claims | 263 | ||||||||||
Settled Litigation | Opioid | Subsequent Event | |||||||||||
Legal Proceeding (Textuals) | |||||||||||
Damages awarded | $ 5,000 | ||||||||||
Damages awarded, including settlement for related issues, reimbursement for legal fees, and removal from related claims | 297 | ||||||||||
Judicial Ruling | |||||||||||
Legal Proceeding (Textuals) | |||||||||||
Damages awarded | $ 6.8 | $ 8,000 | |||||||||
Pending Litigation | |||||||||||
Legal Proceeding (Textuals) | |||||||||||
Loss contingency, estimate of possible loss | $ 4,000 | $ 5,000 | |||||||||
Loss contingency, estimate of additional possible loss | $ 1,000 | ||||||||||
Pending Litigation | Physiomesh | |||||||||||
Legal Proceeding (Textuals) | |||||||||||
Product liability contingency, number of claimants | claimant | 3,600 | ||||||||||
Pending Litigation | Opioid | State Level Jurisdiction | |||||||||||
Legal Proceeding (Textuals) | |||||||||||
Product liability contingency, number of claimants | claimant | 390 | ||||||||||
Pending Litigation | Opioid | Federal Level Jurisdiction | |||||||||||
Legal Proceeding (Textuals) | |||||||||||
Product liability contingency, number of claimants | claimant | 2,900 | ||||||||||
DePuy ASR U.S. | Settled Litigation | |||||||||||
Legal Proceeding (Textuals) | |||||||||||
Number of patients in settlement | patient | 10,000 | ||||||||||
Baby Powder | Talc | Subsequent Event | |||||||||||
Legal Proceeding (Textuals) | |||||||||||
Reserve established | 2,000 | ||||||||||
Litigation charge | $ 1,400 | ||||||||||
Number of votes in favor | vote | 16,000 | ||||||||||
Number of votes rejected | vote | 1,500 | ||||||||||
Baby Powder | Judicial Ruling | Damages from Product Defects | |||||||||||
Legal Proceeding (Textuals) | |||||||||||
Litigation contingency | $ 2,100 | $ 4,700 | |||||||||
Payments for legal settlements | $ 2,500 | ||||||||||
Oklahoma Attorney General vs. Johnson & Johnson and JPI | Settled Litigation | |||||||||||
Legal Proceeding (Textuals) | |||||||||||
Damages awarded | $ 465 | ||||||||||
Surgical Mesh Products Marketing | Judicial Ruling | |||||||||||
Legal Proceeding (Textuals) | |||||||||||
Damages awarded | $ 344 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 60 | $ 68 | $ 169 | $ 187 |
Supply Chain | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 121 | 333 | ||
Restructuring charges recorded to date | 1,600 | 1,600 | ||
Supply Chain | Restructuring Charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 60 | 169 | ||
Supply Chain | Cost of products sold | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 18 | 65 | ||
Supply Chain | Other (income) expense | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 43 | 99 | ||
Supply Chain | Minimum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cost savings expected | 600 | 600 | ||
Restructuring estimated cost | 1,900 | 1,900 | ||
Supply Chain | Maximum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cost savings expected | 800 | 800 | ||
Restructuring estimated cost | 2,300 | 2,300 | ||
Medical Devices | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 100 | $ 100 | $ 200 | $ 200 |
Medical Devices | Supply Chain | Minimum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Period for activity | 4 years | |||
Medical Devices | Supply Chain | Maximum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Period for activity | 5 years |
Restructuring - Schedule of Res
Restructuring - Schedule of Restructuring Reserve (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges | $ 60 | $ 68 | $ 169 | $ 187 |
Medical Devices | ||||
Restructuring Reserve [Roll Forward] | ||||
Reserve balance beginning | 144 | |||
Restructuring charges | 333 | |||
Payments for Restructuring | (287) | |||
Restructuring Reserve, Settled without Cash | (38) | |||
Reserve balance ending | 152 | $ 152 | ||
Period of cash outlays for severance expected to be paid out | 18 months | |||
Medical Devices | Employee Severance | ||||
Restructuring Reserve [Roll Forward] | ||||
Reserve balance beginning | $ 135 | |||
Restructuring charges | 0 | |||
Payments for Restructuring | (17) | |||
Restructuring Reserve, Settled without Cash | 0 | |||
Reserve balance ending | 118 | 118 | ||
Medical Devices | Asset Write-off | ||||
Restructuring Reserve [Roll Forward] | ||||
Reserve balance beginning | 0 | |||
Restructuring charges | 38 | |||
Payments for Restructuring | 0 | |||
Restructuring Reserve, Settled without Cash | (38) | |||
Reserve balance ending | 0 | 0 | ||
Medical Devices | Other Restructuring | ||||
Restructuring Reserve [Roll Forward] | ||||
Reserve balance beginning | 9 | |||
Restructuring charges | 295 | |||
Payments for Restructuring | (270) | |||
Restructuring Reserve, Settled without Cash | ||||
Reserve balance ending | $ 34 | $ 34 |