Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 25, 2024 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
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 | 2,406,679,183 | |
Entity Central Index Key | 0000200406 | |
Current Fiscal Year End Date | --12-29 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Common Stock, Par Value $1.00 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock, Par Value $1.00 | |
Trading Symbol | JNJ | |
Security Exchange Name | NYSE | |
0.650% Notes Due May 2024 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 0.650% Notes Due May 2024 | |
Trading Symbol | JNJ24C | |
Security Exchange Name | NYSE | |
5.50% Notes Due November 2024 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 5.50% Notes Due November 2024 | |
Trading Symbol | JNJ24BP | |
Security Exchange Name | NYSE | |
1.150% Notes Due November 2028 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.150% Notes Due November 2028 | |
Trading Symbol | JNJ28 | |
Security Exchange Name | NYSE | |
1.650% Notes Due May 2035 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.650% Notes Due May 2035 | |
Trading Symbol | JNJ35 | |
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents (Note 4) | $ 25,473 | $ 21,859 |
Marketable securities | 745 | 1,068 |
Accounts receivable, trade, less allowances $162 (2023, $166) | 14,946 | 14,873 |
Inventories (Note 2) | 11,383 | 11,181 |
Prepaid expenses and other | 4,455 | 4,514 |
Total current assets | 57,002 | 53,495 |
Property, plant and equipment at cost | 47,585 | 47,776 |
Less: accumulated depreciation | (27,953) | (27,878) |
Property, plant and equipment, net | 19,632 | 19,898 |
Intangible assets, net (Note 3) | 34,286 | 34,175 |
Goodwill (Note 3) | 36,616 | 36,558 |
Deferred taxes on income (Note 5) | 10,305 | 9,279 |
Other assets | 14,125 | 14,153 |
Total assets | 171,966 | 167,558 |
Current liabilities: | ||
Loans and notes payable | 8,550 | 3,451 |
Accounts payable | 8,174 | 9,632 |
Accrued liabilities | 10,323 | 10,212 |
Accrued rebates, returns and promotions | 16,182 | 16,001 |
Accrued compensation and employee related obligations | 2,178 | 3,993 |
Accrued taxes on income (Note 5) | 3,318 | 2,993 |
Total current liabilities | 48,725 | 46,282 |
Long-term debt (Note 4) | 25,082 | 25,881 |
Deferred taxes on income (Note 5) | 3,172 | 3,193 |
Employee related obligations (Note 6) | 7,019 | 7,149 |
Long-term taxes payable (Note 5) | 2,881 | 2,881 |
Other liabilities | 15,067 | 13,398 |
Total liabilities | 101,946 | 98,784 |
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) | (10,768) | (12,527) |
Retained earnings and Additional paid-in capital | 153,378 | 153,843 |
Less: common stock held in treasury, at cost (713,120,000 and 712,765,000 shares) | 75,710 | 75,662 |
Total shareholders’ equity | 70,020 | 68,774 |
Total shareholders’ equity | 70,020 | 68,774 |
Total liabilities and shareholders’ equity | $ 171,966 | $ 167,558 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Allowances for doubtful accounts | $ 162 | $ 166 |
Shareholders' equity: | ||
Common stock, par value per share (in usd 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 (in shares) | 713,120,000 | 712,765,000 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Apr. 02, 2023 | |
Income Statement [Abstract] | ||
Sales to customers (Note 9) | $ 21,383 | $ 20,894 |
Sales to customers percent to sales | 100% | 100% |
Cost of products sold | $ 6,511 | $ 6,687 |
Cost of products sold percent to sales | 30.40% | 32% |
Gross profit | $ 14,872 | $ 14,207 |
Gross Profit Percent To Sales | 69.60% | 68% |
Selling, marketing and administrative expenses | $ 5,257 | $ 4,906 |
Selling marketing and administrative expenses percent to sales | 24.60% | 23.50% |
Research and development expense | $ 3,542 | $ 3,455 |
Research and development expense percent to sales | 16.60% | 16.60% |
In-process research and development impairments | $ 0 | $ 49 |
In-process research and development percent to sales | 0% | 0.20% |
Interest income | $ (364) | $ (198) |
Interest income percent to sales | (1.70%) | (0.90%) |
Interest expense, net of portion capitalized | $ 155 | $ 212 |
Interest expense, net of portion capitalized percent to sales | 0.70% | 1% |
Other (income) expense, net | $ 2,404 | $ 6,940 |
Other (income) expense, net percent to sales | 11.20% | 33.20% |
Restructuring (Note 12) | $ 164 | $ 130 |
Restructuring charge percent to sales | 0.80% | 0.60% |
Earnings (loss) before provision for taxes on income | $ 3,714 | $ (1,287) |
Earnings before provision for taxes on income percent to sales | 17.40% | (6.20%) |
Provision for (benefit from) taxes on income (Note 5) | $ 459 | $ (796) |
Provision for taxes on income percent to sales | 2.20% | (3.90%) |
Net earnings (loss) from continuing operations | $ 3,255 | $ (491) |
Net earnings from continuing operations percent of sales | 15.20% | (2.30%) |
Net earnings from discontinued operations, net of tax | $ 0 | $ 423 |
Net earnings | $ 3,255 | $ (68) |
NET EARNINGS PER SHARE | ||
Continuing operations - basic (in dollars per share) | $ 1.35 | $ (0.19) |
Discontinued operations - basic (in dollars per share) | 0 | 0.16 |
Total net earnings per share - basic (in dollars per share) | 1.35 | (0.03) |
Continuing operations - diluted (in dollars per share) | 1.34 | (0.19) |
Discontinued operations - diluted (in dollars per share) | 0 | 0.16 |
Total net earnings per share - diluted (in dollars per share) | $ 1.34 | $ (0.03) |
Avg. shares outstanding | ||
Basic (shares) | 2,408.2 | 2,605.5 |
Diluted (shares) | 2,430.1 | 2,605.5 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Apr. 02, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings / (Loss) | $ 3,255 | $ (68) |
Other comprehensive income (loss), net of tax | ||
Foreign currency translation | 2,123 | (181) |
Securities: | ||
Unrealized holding gain (loss) arising during period | 2 | 17 |
Reclassifications to earnings | 0 | 0 |
Net change | 2 | 17 |
Employee benefit plans: | ||
Prior service cost amortization during period | (238) | (35) |
Gain (loss) amortization during period | 290 | (33) |
Net change | 52 | (68) |
Derivatives & hedges: | ||
Unrealized gain (loss) arising during period | (167) | 570 |
Reclassifications to earnings | (251) | 3 |
Net change | (418) | 573 |
Other comprehensive income (loss) | 1,759 | 341 |
Comprehensive income | $ 5,014 | $ 273 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Apr. 02, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Foreign currency translation adjustment income (loss) | $ 619 | $ (234) |
Securities income (loss) | (1) | (5) |
Employee benefit plans income (loss) | 42 | 22 |
Derivatives & hedges income (loss) | $ 111 | $ (154) |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Retained Earnings and Additional Paid-in Capital | Accumulated Other Comprehensive Income | Common Stock Issued Amount | Treasury Stock Amount |
Beginning balance at Jan. 01, 2023 | $ 76,804 | $ 128,345 | $ (12,967) | $ 3,120 | $ (41,694) |
Net earnings | (68) | (68) | |||
Cash dividends paid | (2,942) | (2,942) | |||
Employee compensation and stock option plans | 295 | (777) | 1,072 | ||
Repurchase of common stock | (3,537) | (3,537) | |||
Other | (24) | (24) | |||
Other comprehensive income (loss), net of tax | 341 | 341 | |||
Ending balance at Apr. 02, 2023 | 70,869 | 124,558 | (12,626) | 3,120 | (44,183) |
Beginning balance at Dec. 31, 2023 | 68,774 | 153,843 | (12,527) | 3,120 | (75,662) |
Net earnings | 3,255 | 3,255 | |||
Cash dividends paid | (2,869) | (2,869) | |||
Employee compensation and stock option plans | 577 | (851) | 1,428 | ||
Repurchase of common stock | (1,475) | (1,475) | |||
Other | (1) | (1) | |||
Other comprehensive income (loss), net of tax | 1,759 | 1,759 | |||
Ending balance at Mar. 31, 2024 | $ 70,020 | $ 153,378 | $ (10,768) | $ 3,120 | $ (75,710) |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 02, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends paid (in dollars per share) | $ 1.19 | $ 1.13 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Apr. 02, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net earnings | $ 3,255 | $ (68) |
Adjustments to reconcile net earnings to cash flows from operating activities: | ||
Depreciation and amortization of property and intangibles | 1,815 | 1,880 |
Stock based compensation | 302 | 306 |
Asset write-downs | 185 | 426 |
Net gain on sale of assets/businesses | 0 | (8) |
Deferred tax provision | (1,562) | (1,543) |
Credit losses and accounts receivable allowances | 0 | 1 |
Changes in assets and liabilities, net of effects from acquisitions and divestitures: | ||
Increase in accounts receivable | (279) | (54) |
Increase in inventories | (348) | (524) |
Decrease in accounts payable and accrued liabilities | (2,483) | (2,572) |
Decrease/(Increase) in other current and non-current assets | 3,199 | (915) |
(Decrease)/Increase in other current and non-current liabilities | (427) | 6,328 |
Net cash flows from operating activities | 3,657 | 3,257 |
Cash flows from investing activities | ||
Additions to property, plant and equipment | (807) | (863) |
Proceeds from the disposal of assets/businesses, net (Note 10) | 210 | 40 |
Acquisitions, net of cash acquired (Note 10) | (1,811) | 0 |
Purchases of investments | (630) | (3,774) |
Sales of investments | 979 | 7,766 |
Credit support agreements activity, net | 1,600 | 158 |
Other (including capitalized licenses and milestones) | (5) | (12) |
Net cash (used by)/ from investing activities | (464) | 3,315 |
Cash flows from financing activities | ||
Dividends to shareholders | (2,869) | (2,942) |
Repurchase of common stock | (1,475) | (3,537) |
Proceeds from short-term debt | 5,263 | 11,094 |
Repayment of short-term debt | (890) | (5,388) |
Proceeds from long-term debt, net of issuance costs | 2 | 7,674 |
Repayment of long-term debt | (1) | (500) |
Proceeds from the exercise of stock options/employee withholding tax on stock awards, net | 195 | (11) |
Credit support agreements activity, net | 228 | (13) |
Other | 93 | (239) |
Net cash flows from financing activities | 546 | 6,138 |
Effect of exchange rate changes on cash and cash equivalents | (125) | 28 |
Increase in cash, cash equivalents and restricted cash | 3,614 | 12,738 |
Cash and cash equivalents from continuing operations, beginning of period | 21,859 | 12,889 |
Cash and cash equivalents from discontinued operations, beginning of period | 0 | 1,238 |
Cash and Cash equivalents beginning of period | 21,859 | 14,127 |
Cash and cash equivalents from continuing operations, end of period | 25,473 | 25,188 |
Cash and cash equivalents from discontinued operations, end of period | 0 | 1,677 |
Cash, cash equivalents and restricted cash, end of period | 25,473 | 26,865 |
Acquisitions | ||
Fair value of assets acquired | 1,899 | 0 |
Fair value of liabilities assumed | (88) | 0 |
Net cash paid for acquisitions | $ 1,811 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
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 December 31, 2023. 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. 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 December 31, 2023. Recently adopted accounting standards There were no new material accounting standards adopted in the fiscal first quarter of 2024. Recently issued accounting standards Not adopted as of March 31, 2024 ASU 2023-07: Segment Reporting (Topic 280) – Improvements to Reportable Segment Disclosures This update requires expanded annual and interim disclosures for significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss. This update will be effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. This standard is to be applied retrospectively to all periods presented in the financial statements. Early adoption is permitted. As this accounting standard only impacts disclosures, it will not have a material impact on the Company’s Consolidated Financial Statements. ASU 2023-09: Income Taxes (Topic 740) - Improvements to Income Tax Disclosures This update standardizes categories for the effective tax rate reconciliation, requires disaggregation of income taxes and additional income tax-related disclosures. This update is required to be effective for the Company for fiscal periods beginning after December 15, 2024. As this accounting standard only impacts disclosures, it will not have a material impact on the Company’s Consolidated Financial Statements. There were no new material accounting standards issued in the fiscal first quarter of 2024. Supplier finance program obligations The Company has agreements for supplier finance programs with third-party financial institutions. These programs provide participating suppliers the ability to finance payment obligations from the Company with the third-party financial institutions. The Company is not a party to the arrangements between the suppliers and the third-party financial institutions. The Company’s obligations to its suppliers, including amounts due, and scheduled payment dates (which have general payment terms of 90 days), are not affected by a participating supplier’s decision to participate in the program. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories (Dollars in Millions) March 31, 2024 December 31, 2023 Raw materials and supplies $2,331 2,355 Goods in process 2,172 1,952 Finished goods 6,880 6,874 Total inventories $11,383 11,181 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 3 Months Ended |
Mar. 31, 2024 | |
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 2023. 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) March 31, 2024 December 31, 2023 Intangible assets with definite lives: Patents and trademarks — gross $39,198 40,417 Less accumulated amortization (24,826) (24,808) Patents and trademarks — net 14,372 15,609 Customer relationships and other intangibles — gross 19,930 20,322 Less accumulated amortization (12,742) (12,685) Customer relationships and other intangibles — net (1) 7,188 7,637 Intangible assets with indefinite lives: Trademarks 1,649 1,714 Purchased in-process research and development 11,077 9,215 Total intangible assets with indefinite lives 12,726 10,929 Total intangible assets — net $34,286 34,175 (1) The majority is comprised of customer relationships Goodwill as of March 31, 2024 was allocated by segment of business as follows: (Dollars in Millions) Innovative Medicine MedTech Total Goodwill at December 31, 2023 $10,407 26,151 36,558 Goodwill, related to acquisitions 290 — 290 Goodwill, related to divestitures — — — Currency translation/Other (145) (87) (232) Goodwill at March 31, 2024 $10,552 26,064 36,616 The weighted average amortization period for patents and trademarks is approximately 11 years. The weighted average amortization period for customer relationships and other intangible assets is approximately 18 years. The amortization expense of amortizable intangible assets included in the cost of products sold was $1.1 billion and $1.1 billion for the fiscal first quarters ended March 31, 2024 and April 2, 2023, 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) 2024 2025 2026 2027 2028 $4,300 3,500 2,900 2,300 1,600 See Note 10 to the Consolidated Financial Statements for additional details related to acquisitions and divestitures. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024, the cumulative amount of cash collateral paid by the Company under the CSA amounted to $2.2 billion 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 March 31, 2024, the Company had notional amounts outstanding for forward foreign exchange contracts, cross currency interest rate swaps and interest rate swaps of $43.2 billion, $39.6 billion and $10.0 billion, respectively. As of December 31, 2023, the Company had notional amounts outstanding for forward foreign exchange contracts, cross currency interest rate swaps and interest rate swaps of $42.9 billion, $39.7 billion and $10.0 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 with due dates ranging from 2024 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 March 31, 2024, the balance of deferred net loss on derivatives included in accumulated other comprehensive income was $795 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 first quarters ended March 31, 2024 and April 2, 2023, net of tax: March 31, 2024 April 2, 2023 (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 $— — — 8 — — — — 169 — Derivatives designated as hedging instruments — — — (8) — — — — (169) — 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 — — — — 34 — Amount of gain or (loss) recognized in AOCI — — — 34 — — — — 34 — Gain (Loss) on cash flow hedging relationship: Forward foreign exchange contracts: Amount of gain or (loss) reclassified from AOCI into income 1 165 4 — (2) 12 (146) (13) — 2 Amount of gain or (loss) recognized in AOCI (3) (19) 22 — 4 24 145 (36) — (14) Cross currency interest rate swaps contracts: Amount of gain or (loss) reclassified from AOCI into income — — — 49 — — — — 108 — Amount of gain or (loss) recognized in AOCI $— — — (205) — — — — 417 — As of March 31, 2024, and December 31, 2023, 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 Gain/ (Loss) Included in the Carrying Amount of the Hedged Liability (Dollars in Millions) March 31, 2024 December 31, 2023 March 31, 2024 December 31, 2023 Long-term Debt $8,871 8,862 (1,205) (1,216) The following table is the effect of derivatives not designated as hedging instruments for the fiscal first quarters ended 2024 and 2023: Gain/(Loss) (Dollars in Millions) Location of Gain /(Loss) Recognized in Income on Derivative Fiscal First Quarter Ended Derivatives Not Designated as Hedging Instruments March 31, 2024 April 2, 2023 Foreign Exchange Contracts Other (income) expense 25 (31) The following table is the effect of net investment hedges for the fiscal first quarters ended in 2024 and 2023: Gain/(Loss) Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income Into Income Gain/(Loss) Reclassified From (Dollars in Millions) March 31, 2024 April 2, 2023 March 31, 2024 April 2, 2023 Debt $84 (77) Interest (income) expense — — Cross Currency interest rate swaps $728 690 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: December 31, 2023 March 31, 2024 (Dollars in Millions) 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* $4,473 30 (17) 4,486 4,486 Equity Investments without readily determinable value $696 23 (12) 707 707 (1) Recorded in Other (income)/expense, net (2) Other includes impact of currency * Includes the 9.5% remaining stake in Kenvue and the unfavorable change in the fair value of the 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 March 31, 2024 and December 31, 2023 were as follows: March 31, 2024 December 31, 2023 (Dollars in Millions) Level 1 Level 2 Level 3 Total Total (1) Derivatives designated as hedging instruments: Assets: Forward foreign exchange contracts $— 499 — 499 539 Interest rate contracts (2) — 1,202 — 1,202 988 Total — 1,701 — 1,701 1,527 Liabilities: Forward foreign exchange contracts — 401 — 401 624 Interest rate contracts (2) — 3,543 — 3,543 5,338 Total — 3,944 — 3,944 5,962 Derivatives not designated as hedging instruments: Assets: Forward foreign exchange contracts — 21 — 21 64 Liabilities: Forward foreign exchange contracts — 36 — 36 75 Other Investments: Equity investments (3) 4,486 — — 4,486 4,473 Debt securities (4) — 9,346 — 9,346 8,874 Other Liabilities Contingent consideration (5) $— — 1,114 1,114 1,092 Gross to Net Derivative Reconciliation March 31, 2024 December 31, 2023 (Dollars in Millions) Total Gross Assets $1,722 1,591 Credit Support Agreement (CSA) (1,681) (1,575) Total Net Asset 41 16 Total Gross Liabilities 3,980 6,037 Credit Support Agreement (CSA) (3,882) (5,604) Total Net Liabilities $98 433 Summarized information about changes in liabilities for contingent consideration for the fiscal first quarters ended March 31, 2024 and April 2, 2023 is as follows: March 31, 2024 April 2, 2023 (Dollars in Millions) Beginning Balance $1,092 1,120 Changes in estimated fair value (6) 22 23 Additions — — Payments — (1) Ending Balance $1,114 1,142 (1) 2023 assets and liabilities are all classified as Level 2 with the exception of equity investments of $4,473 million, which are classified as Level 1 and contingent consideration of $1,092 million, classified as Level 3. (2) Includes cross currency interest rate swaps and interest rate swaps. (3) Classified as non-current other assets. (4) Classified within cash equivalents and current marketable securities. (5) Classified as non-current other liabilities as of March 31, 2024 and December 31, 2023, respectively. (6) Ongoing fair value adjustment amounts are primarily recorded in Research and Development expense. The Company's cash, cash equivalents and current marketable securities as of March 31, 2024 comprised: (Dollars in Millions) Carrying Amount Unrealized Gain Estimated Fair Value Cash & Cash Equivalents Current Marketable Securities Cash $3,410 — 3,410 3,410 — U.S. Gov't securities 96 — 96 96 — Non-U.S. sovereign securities 324 — 324 324 — U.S. reverse repurchase agreements 7,892 — 7,892 7,892 — Corporate debt securities (1) 702 — 702 588 114 Money market funds 3,822 — 3,822 3,822 — Time deposits (1) 626 — 626 626 — Subtotal 16,872 — 16,872 16,758 114 U.S. Gov’t securities 9,064 — 9,064 8,665 399 U.S. Gov’t Agencies 41 2 43 — 43 Other sovereign securities 2 — 2 — 2 Corporate debt securities 237 — 237 50 187 Subtotal available for sale debt (2) $9,344 2 9,346 8,715 631 Total cash, cash equivalents and current marketable securities $26,216 2 26,218 25,473 745 (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 December 31, 2023, 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 either cash equivalents or current marketable securities. The contractual maturities of the available for sale securities as of March 31, 2024 are as follows: (Dollars in Millions) Cost Basis Fair Value Due within one year $9,331 9,333 Due after one year through five years 13 13 Due after five years through ten years — — Total debt securities $9,344 9,346 Financial instruments not measured at fair value The following financial liabilities are held at carrying amount on the consolidated balance sheet as of March 31, 2024: (Dollars in Millions) Carrying Amount Estimated Fair Value Financial Liabilities Current Debt $8,550 8,533 Non-Current Debt 0.55% Notes due 2025 974 940 2.46% Notes due 2026 1,998 1,917 2.95% Notes due 2027 907 958 0.95% Notes due 2027 1,434 1,337 2.90% Notes due 2028 1,497 1,422 1.150% Notes due 2028 (750MM Euro 1.0809) 807 751 6.95% Notes due 2029 298 339 1.30% Notes due 2030 1,633 1,466 4.95% Debentures due 2033 499 523 4.375% Notes due 2033 854 848 1.650% Notes due 2035 (1.5B Euro 1.0809) 1,610 1,430 3.587% Notes due 2036 862 893 5.95% Notes due 2037 994 1,110 3.625% Notes due 2037 1,354 1,333 3.40% Notes due 2038 993 858 5.85% Debentures due 2038 697 772 4.50% Debentures due 2040 541 530 2.10% Notes due 2040 844 688 4.85% Notes due 2041 297 301 4.50% Notes due 2043 496 481 3.73% Notes due 2046 1,978 1,675 3.75% Notes due 2047 825 829 3.50% Notes due 2048 743 598 2.25% Notes due 2050 816 629 2.45% Notes due 2060 1,064 743 Other 67 67 Total Non-Current Debt $25,082 23,438 The weighted average effective interest rate on non-current debt is 2.99%. The excess of the carrying value over the estimated fair value of debt was $1.0 billion at December 31, 2023. 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 | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income taxes The worldwide effective income tax rates for the fiscal first quarters of 2024 and 2023 were 12.4% and 61.8%, respectively. The change in the consolidated tax rate as compared to the prior year fiscal first quarter is primarily due to a charge of $6.9 billion in the fiscal first quarter of 2023 and a charge of $2.7 billion in the fiscal first quarter of 2024, both for the talc settlement proposal. Both charges were recorded at an effective U.S. federal and state tax rate of approximately 23% (for further information see Note 11 to the Consolidated Financial Statements). Additionally in the fiscal first quarter of 2024, the effective tax rate was impacted by legislative changes that went into effect for Pillar Two in some of the Company's foreign jurisdictions. The Company also had tax benefits received from stock-based compensation that were either exercised or vested during each of the fiscal first quarters, as well as a capital loss tax benefit in the fiscal first quarter of 2024. As of March 31, 2024, the Company had approximately $2.5 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 Internal Revenue Service has completed its audit for the tax years through 2016 and in the fiscal first quarter of 2024 has commenced the audit for tax years 2017 through 2020. In other major jurisdictions where the Company conducts business, the years that remain open to tax audit go back to the year 2013. 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 | 3 Months Ended |
Mar. 31, 2024 | |
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 First Quarter Ended Retirement Plans Other Benefit Plans (Dollars in Millions) March 31, 2024 April 2, 2023 March 31, 2024 April 2, 2023 Service cost $224 210 69 68 Interest cost 352 352 52 54 Expected return on plan assets (642) (668) (2) (1) Amortization of prior service cost/ (credit) (46) (46) — — Recognized actuarial (gains)/losses 43 (50) 13 6 Curtailments and settlements — — — — Net periodic benefit cost/(credit) $(69) (202) 132 127 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, including Cost of products sold, Research and development expense, Selling, marketing and administrative expenses, and in the fiscal first quarter of 2023, Net earnings from discontinued operations, net of taxes if related to the separation of Kenvue. 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 three months ended March 31, 2024, the Company contributed $29 million and $3 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 | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated other comprehensive income Components of other comprehensive income/(loss) consist of the following: (Dollars in Millions) Foreign Currency Translation Gain/ (Loss) On Securities Employee Benefit Plans Gain/ (Loss) On Derivatives & Hedges Total Accumulated Other Comprehensive Income/(Loss) December 31, 2023 $(10,149) (1) (2,000) (377) (12,527) Net change 2,123 2 52 (418) 1,759 March 31, 2024 (8,026) 1 (1,948) (795) (10,768) 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. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2024 | |
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 First Quarter Ended (Shares in Millions) March 31, 2024 April 2, 2023 Basic net earnings (loss) per share from continuing operations $1.35 (0.19) Basic net earnings per share from discontinued operations — 0.16 Total net earnings (loss) per share - basic 1.35 (0.03) Average shares outstanding — basic 2,408.2 2,605.5 Potential shares exercisable under stock option plans 87.6 — Less: shares which could be repurchased under treasury stock method (65.7) — Average shares outstanding — diluted/basic* 2,430.1 2,605.5 Diluted net earnings (loss) per share from continuing operations 1.34 (0.19) Diluted net earnings per share from discontinuing operations — 0.16 Total net earnings (loss) per share - diluted $1.34 (0.03) The diluted net earnings per share calculation for the fiscal first quarter ended March 31, 2024 excluded 44.2 million shares related to stock options, as the exercise price of these options was greater than the average market value of the Company’s stock. * Basic shares are used to calculate loss per share as use of diluted shares when in a loss position would be anti-dilutive. |
Segments of Business and Geogra
Segments of Business and Geographic Areas | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Segments of Business and Geographic Areas | Segments of business and geographic areas Following the separation of the Consumer Health business in the fiscal third quarter of 2023, the Company is now organized into two business segments: Innovative Medicine and MedTech. The segment results have been recast for all periods to reflect the continuing operations of the Company. Sales by segment of business Fiscal First Quarter Ended (Dollars in Millions) March 31, April 2, Percent INNOVATIVE MEDICINE Immunology U.S. $2,453 2,448 0.2 % International 1,794 1,664 7.9 Worldwide 4,247 4,112 3.3 REMICADE U.S. 266 276 (3.9) U.S. Exports 27 41 (32.7) International 141 170 (17.2) Worldwide 434 487 (10.9) SIMPONI / SIMPONI ARIA U.S. 254 271 (6.2) International 299 266 12.4 Worldwide 554 537 3.0 STELARA U.S. 1,396 1,451 (3.8) International 1,055 993 6.2 Worldwide 2,451 2,444 0.3 TREMFYA U.S. 509 406 25.4 International 299 234 27.9 Worldwide 808 640 26.3 OTHER IMMUNOLOGY U.S. 0 3 * International 0 0 — Worldwide 0 3 * Infectious Diseases U.S. 324 392 (17.4) International 497 1,193 (58.4) Worldwide 821 1,586 (48.3) COVID-19 VACCINE U.S. 0 0 — International 25 747 (96.6) Worldwide 25 747 (96.6) EDURANT / rilpivirine U.S. 8 9 (10.9) Fiscal First Quarter Ended (Dollars in Millions) March 31, April 2, Percent International 315 271 16.6 Worldwide 323 280 15.7 PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA U.S. 314 378 (16.9) International 104 99 5.5 Worldwide 418 477 (12.3) OTHER INFECTIOUS DISEASES U.S. 2 5 (68.8) International 52 77 (32.8) Worldwide 53 82 (35.1) Neuroscience U.S. 1,054 978 7.8 International 749 826 (9.3) Worldwide 1,803 1,804 0.0 CONCERTA / methylphenidate U.S. 41 70 (41.2) International 136 136 (0.1) Worldwide 177 206 (14.1) INVEGA SUSTENNA / XEPLION / INVEGA TRINZA / TREVICTA U.S. 765 713 7.2 International 292 331 (11.8) Worldwide 1,056 1,044 1.2 SPRAVATO U.S. 191 111 71.5 International 34 20 76.1 Worldwide 225 131 72.2 OTHER NEUROSCIENCE U.S. 58 84 (31.1) International 287 339 (15.5) Worldwide 345 423 (18.5) Oncology U.S. 2,383 1,889 26.2 International 2,430 2,223 9.3 Worldwide 4,814 4,112 17.1 CARVYKTI U.S. 140 70 99.8 International 16 2 * Worldwide 157 72 * DARZALEX U.S. 1,464 1,191 22.9 Fiscal First Quarter Ended (Dollars in Millions) March 31, April 2, Percent International 1,228 1,072 14.5 Worldwide 2,692 2,264 18.9 ERLEADA U.S. 285 249 14.1 International 404 293 38.0 Worldwide 689 542 27.0 IMBRUVICA U.S. 265 270 (1.5) International 518 557 (7.0) Worldwide 784 827 (5.2) TECVAYLI (1) U.S. 101 57 76.7 International 33 6 * Worldwide 133 63 * ZYTIGA / abiraterone acetate U.S. 9 16 (41.3) International 172 229 (24.8) Worldwide 181 245 (25.9) OTHER ONCOLOGY U.S. 119 35 * International 60 64 (6.1) Worldwide 178 99 80.2 Pulmonary Hypertension U.S. 766 600 27.5 International 283 272 4.1 Worldwide 1,049 872 20.2 OPSUMIT U.S. 356 273 30.4 International 169 167 0.8 Worldwide 524 440 19.1 UPTRAVI U.S. 392 304 29.0 International 76 58 30.7 Worldwide 468 362 29.2 OTHER PULMONARY HYPERTENSION U.S. 18 23 (24.6) International 39 47 (16.9) Worldwide 56 70 (19.5) Cardiovascular / Metabolism / Other U.S. 631 715 (11.7) International 197 212 (7.0) Worldwide 829 927 (10.6) Fiscal First Quarter Ended (Dollars in Millions) March 31, April 2, Percent XARELTO U.S. 518 578 (10.4) International — — — Worldwide 518 578 (10.4) OTHER U.S. 114 137 (17.1) International 197 212 (7.0) Worldwide 311 349 (11.0) TOTAL INNOVATIVE MEDICINE U.S. 7,612 7,023 8.4 International 5,950 6,390 (6.9) Worldwide 13,562 13,413 1.1 MEDTECH Cardiovascular (2) U.S. 1,025 863 18.8 International 781 640 22.1 Worldwide 1,806 1,503 20.2 ELECTROPHYSIOLOGY U.S. 692 571 21.3 International 652 522 24.9 Worldwide 1,344 1,092 23.0 ABIOMED U.S. 303 264 15.0 International 67 60 12.4 Worldwide 371 324 14.5 OTHER CARDIOVASCULAR (2) U.S. 30 28 3.3 International 62 58 6.9 Worldwide 92 87 5.7 Orthopaedics U.S. 1,448 1,363 6.2 International 892 881 1.3 Worldwide 2,340 2,245 4.3 HIPS U.S. 270 241 12.1 International 152 149 1.7 Worldwide 422 390 8.1 KNEES U.S. 242 226 6.9 International 160 142 12.3 Worldwide 401 368 9.0 Fiscal First Quarter Ended (Dollars in Millions) March 31, April 2, Percent TRAUMA U.S. 504 491 2.8 International 261 267 (2.3) Worldwide 765 757 1.0 SPINE, SPORTS & OTHER U.S. 432 406 6.5 International 320 323 (0.9) Worldwide 752 729 3.2 Surgery U.S. 987 975 1.2 International 1,429 1,459 (2.0) Worldwide 2,416 2,434 (0.7) ADVANCED U.S. 446 444 0.2 International 641 673 (4.7) Worldwide 1,087 1,118 (2.8) GENERAL U.S. 542 531 2.1 International 788 785 0.3 Worldwide 1,330 1,316 1.0 Vision U.S. 547 558 (1.8) International 710 743 (4.4) Worldwide 1,258 1,300 (3.3) CONTACT LENSES / OTHER U.S. 438 444 (1.4) International 472 509 (7.4) Worldwide 910 953 (4.6) SURGICAL U.S. 110 114 (3.7) International 238 233 2.2 Worldwide 348 347 0.3 TOTAL MEDTECH U.S. 4,008 3,759 6.6 International 3,813 3,722 2.4 Worldwide 7,821 7,481 4.5 WORLDWIDE U.S. 11,620 10,782 7.8 International 9,763 10,112 (3.4) Worldwide $21,383 20,894 2.3 % * Percentage greater than 100% or not meaningful (1) Previously included in Other Oncology (2) Previously referred to as Interventional Solutions Earnings before provision for taxes by segment Fiscal First Quarter Ended (Dollars in Millions) March 31, April 2, Percent Innovative Medicine (1) $4,969 4,402 12.9 % MedTech (2) 1,520 1,409 7.9 Segment earnings before provision for taxes 6,489 5,811 11.7 Less: Expense not allocated to segments (3) 2,775 7,098 Worldwide income (loss) before tax $3,714 (1,287) (1) Innovative Medicine includes: • Intangible amortization expense of $0.7 billion in both the fiscal first quarter of 2024 and 2023. • One-time COVID-19 Vaccine related exit costs of $0.4 billion in the fiscal first quarter of 2023. • A restructuring related charge of $0.1 billion in both the fiscal first quarter of 2024 and 2023. (2) MedTech includes: • Intangible amortization expense of $0.4 billion in both the fiscal first quarter of 2024 and 2023. (3 ) Amounts not allocated to segments include interest (income)/expense and general corporate (income)/expense. The fiscal first quarters of 2024 and 2023 include charges for talc matters of $2.7 billion and $6.9 billion, respectively (See Note 11, Legal Proceedings, for additional details). Sales by geographic area Fiscal First Quarter Ended (Dollars in Millions) March 31, 2024 April 2, 2023 Percent United States $11,620 10,782 7.8 % Europe 5,163 5,590 (7.6) Western Hemisphere, excluding U.S. 1,194 1,076 11.0 Asia-Pacific, Africa 3,406 3,446 (1.1) Total $21,383 20,894 2.3 % |
Acquisitions and Divestitures
Acquisitions and Divestitures | 3 Months Ended |
Mar. 31, 2024 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | Acquisitions and divestitures Subsequent to the fiscal first quarter of 2024, the Company announced that it has entered into a definitive agreement to acquire all outstanding shares of Shockwave Medical, Inc. (Shockwave) (Nasdaq: SWAV), a leading, first-to-market provider of innovative intravascular lithotripsy (IVL) technology for the treatment of calcified coronary artery disease (CAD) and peripheral artery disease (PAD), for $335.00 per share in cash, corresponding to an enterprise value of approximately $13.1 billion including cash acquired. The results of operations will be included in the MedTech segment as of the acquisition date. The closing of the transaction is expected to occur by mid–year 2024. On March 7, 2024, the Company completed the acquisition of Ambrx Biopharma, Inc., (Ambrx), a clinical-stage biopharmaceutical company with a proprietary synthetic biology technology platform to design and develop next-generation antibody drug conjugates (ADCs), in an all-cash merger transaction for a total equity value of approximately $2.0 billion, or $1.8 billion net of cash acquired. The Company acquired all of the outstanding shares of Ambrx’s common stock for $28.00 per share through a merger of Ambrx with a subsidiary of the Company. The transaction was accounted for as a business combination and the results of operations were included in the Innovative Medicine segment as of the acquisition date. The fair value of the acquisition was allocated to assets acquired of $2.3 billion, primarily non-amortizable intangible assets, inclusive of purchased IPR&D, for $1.9 billion, goodwill for $0.3 billion and liabilities assumed of $0.5 billion, which includes deferred taxes of $0.4 billion. The preliminary purchase price allocation is subject to any subsequent valuation adjustments within the measurement period. A probability of success factor ranging from 40% to 70% was used in the fair value calculation to reflect inherent regulatory and commercial risk of the IPR&D. The discount rate applied was approximately 17%. The goodwill is primarily attributable to synergies expected to arise from the business acquisition and is not expected to be deductible for tax purposes. Acquisition related costs before tax for the fiscal first quarter of 2024 were not material. Divestitures In the fiscal first quarter of 2024, the Company completed the divestiture of Ponvory resulting in approximately $0.2 billion in proceeds. There were no material acquisitions or divestitures in the fiscal first quarter of 2023. |
Legal Proceedings
Legal Proceedings | 3 Months Ended |
Mar. 31, 2024 | |
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; indemnification and other matters; governmental investigations; and other legal proceedings that arise from time to time in the ordinary course of their business. 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 March 31, 2024, 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. Matters concerning talc A significant number of personal injury claims alleging that talc causes cancer have been asserted against Johnson & Johnson Consumer Inc., its successor LTL Management LLC (now known as LLT Management LLC) and the Company arising out of the use of body powders containing talc, primarily JOHNSON’S Baby Powder. In talc cases that 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 settled 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 Case). All litigation against LTL, Old JJCI, New JJCI, the Company, other of their corporate affiliates, identified retailers, insurance companies, and certain other parties (the Protected Parties) was stayed. The LTL Bankruptcy Case was transferred to the United States Bankruptcy Court for the District of New Jersey. Claimants filed motions to dismiss the LTL Bankruptcy Case and, following a multiple day hearing, the New Jersey Bankruptcy Court denied those motions in March 2022. The claimants subsequently filed notices of appeal as to the denial of the motions to dismiss the LTL Bankruptcy Case and the extension of the stay to the Protected Parties. On January 30, 2023, the Third Circuit reversed the Bankruptcy Court’s ruling and remanded to the Bankruptcy Court to dismiss the LTL bankruptcy. In April 2023, the New Jersey Bankruptcy Court dismissed the LTL Bankruptcy Case, effectively lifting the stay as to all parties and returning the talc litigation to the tort system. LTL re-filed in the United States Bankruptcy Court for the District of New Jersey seeking relief under chapter 11 of the Bankruptcy Code (the LTL 2 Bankruptcy Case). As a result of the new filing, all talc claims against LTL were again automatically stayed pursuant to section 362 of the Bankruptcy Code. Additionally, the New Jersey Bankruptcy Court issued a temporary restraining order staying all litigation as to LTL, Old JJCI, New JJCI, the Company, identified retailers, and certain other parties (the New Protected Parties). Also in April 2023, the New Jersey Bankruptcy Court issued a decision that granted limited injunctive relief to the Company and the New Protected Parties (the LTL 2 Preliminary Injunction). The LTL 2 Preliminary Injunction remained in force until late August 2023, following the Bankruptcy Court’s extension of the initial LTL 2 Preliminary Injunction in June 2023. Under the LTL 2 Preliminary Injunction, except for in those cases filed in the federal court ovarian cancer multi-district litigation, discovery in all personal injury and wrongful death matters was permitted to proceed. Furthermore, in April 2023, the Talc Claimants' Committee filed a motion to dismiss the LTL 2 Bankruptcy followed by similar motions from other claimants. Hearings on the motions to dismiss occurred in June 2023. In July 2023, the court dismissed the LTL 2 Bankruptcy case and, the same day, the Company stated its intent to appeal the decision and to continue its efforts to obtain a resolution of the talc claims. In September 2023, the Bankruptcy Court entered an order granting LTL leave to seek a direct appeal to the Third Circuit Court of Appeals. In October 2023, the Third Circuit granted LTL’s petition for a direct appeal. Briefing is ongoing. In October 2023, the Company stated that it was pursuing the following four parallel and alternative pathways to achieve a comprehensive and final resolution of the talc claims: (i) the appeal of the LTL 2 dismissal decision; (ii) pursuing a consensual “prepackaged” bankruptcy case, as “strongly encouraged” by the Bankruptcy Court in its dismissal decision; (iii) aggressively litigating the talc claims in the tort system; and (iv) pursuing affirmative claims against experts for false and defamatory narratives regarding the Company’s talc powder products. Following the dismissal of LTL 2, new lawsuits were filed, cases across the country that had been stayed were reactivated, and trials have commenced. The majority of the cases are pending in federal court, organized in a multi-district litigation (MDL) in the United States District Court for the District of New Jersey. In the MDL, case-specific discovery is proceeding with an expectation that a trial will occur in early 2025. In March 2024, the court granted the Company's motion for a renewed Daubert hearing and set a briefing schedule. On May 1, 2024, the Company commenced a three-month solicitation period of its proposed consensual “prepackaged” chapter 11 bankruptcy plan (the “Proposed Plan”) for the comprehensive and final resolution of all current and future claims related to cosmetic talc in the United States, excluding claims related to mesothelioma or State consumer protection claims, in exchange for the payment by the Company of present value of approximately $6.475 billion payable over 25 years (nominal value of approximately $8.4 billion, discounted at a rate of 4.4%). The claims encompassed by the Proposed Plan constitute 99.75% of pending lawsuits against the Company relating to its talc powder products. Mesothelioma and State consumer protection claims are being addressed outside the Proposed Plan. The Company separately has resolved 95% of the mesothelioma lawsuits filed to date, and has agreements in principle to resolve the State claims. To account for these settlements and the contemplated comprehensive resolution through the Proposed Plan, the Company recorded an incremental charge of approximately $2.7 billion, for a total reserve as of the first fiscal quarter 2024 at a present value of approximately $11 billion (or nominal value of approximately $13.7 billion). Approximately one-third of the reserve is recorded as a current liability. The recorded amount remains the Company's best estimate of probable loss. During the pendency of the solicitation period, the Company will continue to pursue in parallel the other three previously-announced pathways to resolve the talc claims, including proceeding with the Daubert motions in the MDL. 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 petition for relief under chapter 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. In its bankruptcy, Imerys alleges it has claims against the Company for indemnification and rights to joint insurance proceeds. In its bankruptcy, Imerys proposed a chapter 11 plan (the Imerys Plan) that contemplated all talc-related claims against it being channeled to a trust along with its alleged indemnification rights against the Company. Following confirmation and consummation of the plan, the trust would pay talc claims pursuant to proposed trust distribution procedures (the TDP) and then seek indemnification from the Company. In February 2021, Cyprus Mines Corporation (Cyprus), which had owned certain Imerys talc mines, filed a voluntary petition for relief under chapter 11 of the Bankruptcy Code and filed its Disclosure Statement and Plan (the Cyprus Plan). The Cyprus 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 and certain affiliated parties. The Imerys Plan proceeded to solicitation in early 2021. However, the Imerys Plan did not receive the requisite number of votes to be confirmed after the Bankruptcy Court ruled certain votes cast in favor of the Imerys Plan should be disregarded. Imerys subsequently canceled its confirmation hearing. After the confirmation hearing was canceled, Imerys, the Imerys Tort Claimants’ Committee, and the Imerys Future Claimants’ Representative, along with Cyprus, the Cyprus Tort Claimants’ Committee, and the Cyprus Future Claimants’ Representative engaged in mediation. The Bankruptcy Court also authorized Imerys and Cyprus to proceed with mediation with certain of their insurers. In September 2023, Imerys and Cyprus filed amended plans of reorganization. The amended plans contemplate a similar construct as the prior Imerys and Cyprus Plans, including all talc claims against Imerys and Cyprus (and certain other protected parties) being channeled to a trust along with Imerys’s and Cyprus’s alleged indemnification rights against the Company. In January 2024, Imerys and Cyprus each filed a disclosure statement for its respective Chapter 11 plans. On April 29, 2024, the Company, Imerys and Cyprus reached an agreement in principle on monetary and non-monetary terms to resolve their ongoing disputes, including disputes raised in the Imerys and Cyprus bankruptcies. In February 2018, a securities class action lawsuit was filed against the Company and certain named officers in the United States District Court for the District of New Jersey, alleging that the Company 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 the Company’s shares suffered losses as a result. In April 2019, the Company moved to dismiss the complaint. In December 2019, the Court denied, in part, the motion to dismiss. In April 2021, briefing on Plaintiff’s motion for class certification was completed. The case was stayed in May 2022 pursuant to the LTL Bankruptcy Case and was reopened in May 2023. In December 2023, the Court granted Plaintiff’s motion for class certification. In January 2024, Defendants filed a petition with the Third Circuit under Federal Rule of Civil Procedure 23(f) for permission to appeal the Court’s order granting class certification, and in February 2024, the Third Circuit granted Defendants' petition. Fact discovery closed in February 2024 and the Court ordered the parties to mediate. The Court stayed the case pending the mediation, which is scheduled for May 2024. 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 the Company 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. Plaintiffs filed their opening brief in July 2021. The company filed its responsive brief in October 2021. After the Notice of Suggestion of Bankruptcy was filed with the Ninth Circuit, a stay was imposed, and the Court held the reply deadline in abeyance. In September 2023, the stay lifted. On April 29, 2024, the Ninth Circuit affirmed the District Court's order dismissing the case with prejudice. In June 2014, the Mississippi Attorney General filed a complaint in Chancery Court of The First Judicial District of Hinds County, Mississippi against the Company and Johnson & Johnson Consumer Companies, Inc. (now known as Johnson & Johnson Consumer Inc.) (collectively, JJCI). The complaint alleges that JJCI violated the Mississippi Consumer Protection Act by failing to disclose alleged health risks associated with female consumers’ use of talc contained in JOHNSON’S Baby Powder and JOHNSON’S Shower to Shower (a product divested in 2012) and seeks injunctive and monetary relief. In February 2022, the trial court set the case for trial to begin in February 2023. However, in October 2022, the LTL bankruptcy court issued an order staying the case. In March 2023, the Third Circuit issued the mandate to dismiss the LTL Bankruptcy Case and in April 2023, the New Jersey Bankruptcy Court dismissed the LTL Bankruptcy Case, effectively lifting the stay as to this matter. The State requested a new trial setting. Later in April 2023, the trial court set a new trial date for April 2024. The Company filed summary judgment and Daubert motions. The State filed a limited Daubert motion. The parties agreed to the Court's request for mediation. The Company has reached an agreement to resolve this matter. In January 2020, the State of New Mexico filed a consumer protection case alleging that the Company deceptively marketed and sold its talcum powder products by making misrepresentations about the safety of the products and the presence of carcinogens, including asbestos. In March 2022, the New Mexico court denied the Company’s motion to compel the State of New Mexico to engage in discovery of state agencies and denied the Company’s request for interlocutory appeal of that decision. The Company then filed a Petition for Writ of Superintending Control and a Request for a Stay to the New Mexico Supreme Court on the issue of the State of New Mexico’s discovery obligations. In April 2022, in view of the efforts to resolve talc-related claims in the LTL Bankruptcy Case, the Company and the State agreed to a 60-day stay of all matters except for the pending writ before the New Mexico Supreme Court, which expired in June 2022. Thereafter, the Company moved to enjoin prosecution of the case in the LTL Bankruptcy Case. In October 2022, the bankruptcy court issued an order staying the case. In December 2022, the State filed an appeal to the Third Circuit concerning the stay order. Separately, in September 2022, the New Mexico Supreme Court granted the Company's request for a stay pending further briefing on the scope of the State of New Mexico’s discovery obligations. In March 2023, the Third Circuit issued the mandate to dismiss the LTL Bankruptcy Case and in April 2023, the New Jersey Bankruptcy Court dismissed the LTL Bankruptcy Case, effectively lifting the stay as to this matter. While the State notified the New Mexico Supreme Court of the lifted stay of litigation in April 2023, the Court has not taken any action since being notified of the lifting of the stay and it remains in effect. The Company has reached an agreement to resolve this matter. Forty-two states and the District of Columbia (including Mississippi and New Mexico) have commenced a joint investigation into the Company’s marketing of its talcum powder products. At this time, the multi-state group has not asserted any claims against the Company. Five states have issued Civil Investigative Demands seeking documents and other information. The Company has produced documents to Arizona, North Carolina, Texas, and Washington and entered into confidentiality agreements. The Company has not received any follow up requests from those states. In March 2022, each of the forty-two states agreed to mediation of their claims in the LTL Bankruptcy Case. In July 2022, New Mexico and Mississippi indicated they would no longer voluntarily submit to further mediation in the LTL Bankruptcy and would proceed with their respective cases in state court. In March 2023, the mediation was terminated. In January 2024, the Company reached an agreement in principle with the multi-state group of state Attorneys General, subject to ongoing negotiation of non-monetary terms. The unique procedural history and status of the New Mexico and Mississippi matters specifically have been discussed above. In addition, the Company has received inquiries, subpoenas, and requests to produce documents regarding talc matters and the LTL Bankruptcy Case from various governmental authorities. The Company has produced documents and responded to inquiries, and will continue to cooperate with government inquiries. Matters concerning opioids Beginning in 2014 and continuing to the present, the Company and Janssen Pharmaceuticals, Inc. (JPI), along with other pharmaceutical companies, have been named in close to 3,500 lawsuits related to the marketing of opioids, including DURAGESIC, NUCYNTA and NUCYNTA ER. The majority of the cases were filed by state and local governments, which were subject to a final settlement in 2021. As of January 2024, the Company and JPI have settled or otherwise resolved the opioid claims advanced by all government entity claimants except the City of Baltimore, a number of school districts, and other claimants. Similar lawsuits have also been filed by private plaintiffs and organizations, including but not limited to the following: individual plaintiffs on behalf of children born with Neonatal Abstinence Syndrome (NAS); hospitals; and health insurers/payors. To date, the Company and JPI have litigated two of the cases to judgment and have prevailed in both, either at trial or on appeal. In July 2021, the Company announced finalization of an agreement to settle all remaining state and subdivision claims for up to $5.0 billion. Approximately 60% of the all-in settlement was paid by the end of fiscal first quarter 2024, and will increase to approximately 75% by fiscal year end 2024. The Company and JPI continue to defend the cases brought by the remaining government entity litigants as well as the cases brought by private litigants, including NAS claimants, hospitals, and health insurers/payors. Counting the private litigant cases, there are approximately 35 remaining opioid cases against the Company and JPI in various state courts, 435 remaining cases in the Ohio MDL, and 4 additional cases in other federal courts. Some of these cases have been dismissed and are being appealed by the plaintiffs and certain others are scheduled for trial in 2024, 2025, or 2026. In addition, the Province of British Columbia filed suit against the Company and its Canadian affiliate Janssen Inc., and many other industry members, in Canada, and is seeking to have that action certified as an opt in class action on behalf of other provincial/territorial and the federal governments in Canada. Additional proposed class actions have been filed in Canada against the Company and Janssen Inc., and many other industry members, by and on behalf of people who used opioids (for personal injuries), municipalities and First Nations bands. These actions allege a variety of claims related to opioid marketing practices, including false advertising, unfair competition, public nuisance, consumer fraud violations, deceptive acts and practices, false claims and unjust enrichment. An adverse judgment in any of these lawsuits could result in the imposition of large monetary penalties and significant damages including, punitive damages, cost of abatement, substantial fines, equitable remedies and other sanctions. In November 2019, a shareholder filed a derivative complaint against the Company as the nominal defendant and certain current and former directors and officers as defendants in the Superior Court of New Jersey. The complaint alleges breaches of fiduciary duties related to the marketing of opioids, and that the Company has suffered damages as a result of those alleged breaches. A series of additional derivative complaints making similar allegations against the same and similar defendants were filed in New Jersey state and federal courts in 2019 and 2020. By 2022, all but two state court cases had been voluntarily dismissed. In February 2022, the state court granted the Company’s motion to dismiss one of the two cases, and the shareholder that brought the second case filed a notice of dismissal. The shareholder whose complaint was dismissed appealed the state court’s dismissal order, and briefing on the appeal concluded in October 2022. In February 2024, the appellate court affirmed the dismissal of the shareholder's amended complaint. In March 2024, the shareholder filed a notice of petition for certification with the Supreme Court of New Jersey seeking review of the appellate court's decision. Product liability The Company 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 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, Contingencies. 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 table below contains the most significant of these cases and provides the approximate number of plaintiffs in the United States with direct claims in pending lawsuits regarding injuries allegedly due to the relevant product or product category as of March 31, 2024: Product or product category Number of plaintiffs Body powders containing talc, primarily JOHNSON’S Baby Powder 61,490 DePuy ASR XL Acetabular System and DePuy ASR Hip Resurfacing System 160 PINNACLE Acetabular Cup System 920 Pelvic meshes 6,440 ETHICON PHYSIOMESH Flexible Composite Mesh 230 RISPERDAL 50 ELMIRON 2,150 The number of pending lawsuits is expected to fluctuate as certain lawsuits are settled or dismissed and additional lawsuits are filed. There may be additional claims that have not yet been filed. MedTech DePuy ASR XL acetabular system and ASR Hip resurfacing system In August 2010, DePuy Orthopaedics, Inc. (DePuy) announced a worldwide voluntary recall of its ASR XL Acetabular System and DePuy ASR Hip Resurfacing System (ASR Hip) used in hip replacement surgery. Claims for personal injury have been made against DePuy and the Company. 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 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 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 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 ASR Hip-related product liability litigation. DePuy PINNACLE Acetabular Cup System Claims for personal injury have also been made against DePuy Orthopaedics, Inc. and the Company (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. Most 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 (Texas MDL). Beginning on June 1, 2022, the Judicial Panel on Multidistrict Litigation ceased transfer of new cases into the Texas MDL, and there are now cases pending in federal court outside the Texas MDL. Litigation also has been filed in state courts and in countries outside of the United States. 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. Ethicon Pelvic Mesh Claims for personal injury have been made against Ethicon, Inc. (Ethicon) and the Company 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 the 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, Belgium, France, Ireland, Italy, Spain and Slovenia and class actions in Israel, Australia, Canada and South Africa. Th |
Kenvue Separation
Kenvue Separation | 3 Months Ended |
Mar. 31, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Kenvue Separation | Note 13— Kenvue separation The results of the Consumer Health business (previously reported as a separate business segment) have been reflected as discontinued operations in the Company’s consolidated statements of earnings as Net earnings from discontinued operations, net of taxes through August 23, 2023, the date of the exchange offer. Prior periods have been recast to reflect this presentation. Details of Net Earnings from Discontinued Operations, net of taxes are as follows: Fiscal First Quarter Ended (Dollars in Millions) April 2, 2023 Sales to customers $3,852 Cost of products sold 1,708 Gross profit 2,144 Selling, marketing and administrative expenses 1,232 Research and development expense 108 Interest Income (37) Interest expense, net of portion capitalized 3 Other (income) expense, net 288 Earnings from Discontinued Operations Before Provision for Taxes on Income 550 Provision for taxes on income 127 Net earnings from Discontinued Operations $423 The following table presents depreciation, amortization and capital expenditures of the discontinued operations related to Kenvue: Fiscal First Quarter Ended (Dollars in Millions) April 2, 2023 Depreciation and Amortization $153 Capital expenditures $47 |
Restructuring
Restructuring | 3 Months Ended |
Mar. 31, 2024 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring In fiscal 2023, the Company completed a prioritization of its research and development (R&D) investment within its Innovative Medicine segment to focus on the most promising medicines with the greatest benefit to patients. This resulted in the exit of certain programs within certain therapeutic areas. The R&D program exits are primarily in infectious diseases and vaccines including the discontinuation of its respiratory syncytial virus (RSV) adult vaccine program, hepatitis and HIV development. Pre-tax Restructuring expenses of $144 million in the fiscal first quarter of 2024, included the termination of partnered and non-partnered development program costs and asset impairments. The pre-tax restructuring charge of approximately $0.1 billion in the fiscal first quarter of 2023 included the termination of partnered and non-partnered program costs and asset impairments. Total project costs of approximately $0.6 billion have been recorded since the restructuring was announced. The majority of the restructuring is completed, with minor charges expected in the remainder of year. In fiscal 2023, the Company initiated a restructuring program of its Orthopaedics franchise within its MedTech segment to streamline operations by exiting certain markets, product lines and distribution network arrangements. The pre-tax restructuring expense of $27 million in the fiscal first quarter of 2024, primarily included costs related to market and product exits. Total project costs of approximately $0.3 billion have been recorded since the restructuring was announced. The estimated costs of the total program are between $0.7 billion - $0.8 billion and is expected to be completed by the end of fiscal year 2025. The following table summarizes the restructuring expenses for 2024: (Pre-tax Dollars in Millions) Fiscal First Quarter Ended Innovative Medicine Segment (1) $144 MedTech Segment (2) 27 Total Programs $171 (1) Included in Restructuring on the Consolidated Statement of Earnings (2) Included $20 million in Restructuring and $7 million in Cost of products sold on the Consolidated Statement of Earnings Restructuring reserves as of March 31, 2024 and December 31, 2023 were insignificant. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Apr. 02, 2023 | |
Pay vs Performance Disclosure | ||
Net earnings | $ 3,255 | $ (68) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
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 December 31, 2023. Recently adopted accounting standards There were no new material accounting standards adopted in the fiscal first quarter of 2024. Recently issued accounting standards Not adopted as of March 31, 2024 ASU 2023-07: Segment Reporting (Topic 280) – Improvements to Reportable Segment Disclosures This update requires expanded annual and interim disclosures for significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss. This update will be effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. This standard is to be applied retrospectively to all periods presented in the financial statements. Early adoption is permitted. As this accounting standard only impacts disclosures, it will not have a material impact on the Company’s Consolidated Financial Statements. ASU 2023-09: Income Taxes (Topic 740) - Improvements to Income Tax Disclosures This update standardizes categories for the effective tax rate reconciliation, requires disaggregation of income taxes and additional income tax-related disclosures. This update is required to be effective for the Company for fiscal periods beginning after December 15, 2024. As this accounting standard only impacts disclosures, it will not have a material impact on the Company’s Consolidated Financial Statements. There were no new material accounting standards issued in the fiscal first quarter of 2024. |
Cash and Cash Equivalents | 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 either cash equivalents or current marketable securities. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | (Dollars in Millions) March 31, 2024 December 31, 2023 Raw materials and supplies $2,331 2,355 Goods in process 2,172 1,952 Finished goods 6,880 6,874 Total inventories $11,383 11,181 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | (Dollars in Millions) March 31, 2024 December 31, 2023 Intangible assets with definite lives: Patents and trademarks — gross $39,198 40,417 Less accumulated amortization (24,826) (24,808) Patents and trademarks — net 14,372 15,609 Customer relationships and other intangibles — gross 19,930 20,322 Less accumulated amortization (12,742) (12,685) Customer relationships and other intangibles — net (1) 7,188 7,637 Intangible assets with indefinite lives: Trademarks 1,649 1,714 Purchased in-process research and development 11,077 9,215 Total intangible assets with indefinite lives 12,726 10,929 Total intangible assets — net $34,286 34,175 (1) The majority is comprised of customer relationships |
Goodwill | Goodwill as of March 31, 2024 was allocated by segment of business as follows: (Dollars in Millions) Innovative Medicine MedTech Total Goodwill at December 31, 2023 $10,407 26,151 36,558 Goodwill, related to acquisitions 290 — 290 Goodwill, related to divestitures — — — Currency translation/Other (145) (87) (232) Goodwill at March 31, 2024 $10,552 26,064 36,616 |
Intangible Asset Amortization Expense | The estimated amortization expense for approved products, before tax, for the five succeeding years is approximately: (Dollars in Millions) 2024 2025 2026 2027 2028 $4,300 3,500 2,900 2,300 1,600 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 first quarters ended March 31, 2024 and April 2, 2023, net of tax: March 31, 2024 April 2, 2023 (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 $— — — 8 — — — — 169 — Derivatives designated as hedging instruments — — — (8) — — — — (169) — 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 — — — — 34 — Amount of gain or (loss) recognized in AOCI — — — 34 — — — — 34 — Gain (Loss) on cash flow hedging relationship: Forward foreign exchange contracts: Amount of gain or (loss) reclassified from AOCI into income 1 165 4 — (2) 12 (146) (13) — 2 Amount of gain or (loss) recognized in AOCI (3) (19) 22 — 4 24 145 (36) — (14) Cross currency interest rate swaps contracts: Amount of gain or (loss) reclassified from AOCI into income — — — 49 — — — — 108 — Amount of gain or (loss) recognized in AOCI $— — — (205) — — — — 417 — The following table is the effect of net investment hedges for the fiscal first quarters ended in 2024 and 2023: Gain/(Loss) Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income Into Income Gain/(Loss) Reclassified From (Dollars in Millions) March 31, 2024 April 2, 2023 March 31, 2024 April 2, 2023 Debt $84 (77) Interest (income) expense — — Cross Currency interest rate swaps $728 690 Interest (income) expense — — |
Schedule of Derivative Financial Instruments and Classification on Consolidated Balance Sheet | As of March 31, 2024, and December 31, 2023, 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 Gain/ (Loss) Included in the Carrying Amount of the Hedged Liability (Dollars in Millions) March 31, 2024 December 31, 2023 March 31, 2024 December 31, 2023 Long-term Debt $8,871 8,862 (1,205) (1,216) |
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 first quarters ended 2024 and 2023: Gain/(Loss) (Dollars in Millions) Location of Gain /(Loss) Recognized in Income on Derivative Fiscal First Quarter Ended Derivatives Not Designated as Hedging Instruments March 31, 2024 April 2, 2023 Foreign Exchange Contracts Other (income) expense 25 (31) |
Summary of Activity Related to Equity Investments | The following table is a summary of the activity related to equity investments: December 31, 2023 March 31, 2024 (Dollars in Millions) 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* $4,473 30 (17) 4,486 4,486 Equity Investments without readily determinable value $696 23 (12) 707 707 (1) Recorded in Other (income)/expense, net (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 March 31, 2024 and December 31, 2023 were as follows: March 31, 2024 December 31, 2023 (Dollars in Millions) Level 1 Level 2 Level 3 Total Total (1) Derivatives designated as hedging instruments: Assets: Forward foreign exchange contracts $— 499 — 499 539 Interest rate contracts (2) — 1,202 — 1,202 988 Total — 1,701 — 1,701 1,527 Liabilities: Forward foreign exchange contracts — 401 — 401 624 Interest rate contracts (2) — 3,543 — 3,543 5,338 Total — 3,944 — 3,944 5,962 Derivatives not designated as hedging instruments: Assets: Forward foreign exchange contracts — 21 — 21 64 Liabilities: Forward foreign exchange contracts — 36 — 36 75 Other Investments: Equity investments (3) 4,486 — — 4,486 4,473 Debt securities (4) — 9,346 — 9,346 8,874 Other Liabilities Contingent consideration (5) $— — 1,114 1,114 1,092 Gross to Net Derivative Reconciliation March 31, 2024 December 31, 2023 (Dollars in Millions) Total Gross Assets $1,722 1,591 Credit Support Agreement (CSA) (1,681) (1,575) Total Net Asset 41 16 Total Gross Liabilities 3,980 6,037 Credit Support Agreement (CSA) (3,882) (5,604) Total Net Liabilities $98 433 Summarized information about changes in liabilities for contingent consideration for the fiscal first quarters ended March 31, 2024 and April 2, 2023 is as follows: March 31, 2024 April 2, 2023 (Dollars in Millions) Beginning Balance $1,092 1,120 Changes in estimated fair value (6) 22 23 Additions — — Payments — (1) Ending Balance $1,114 1,142 (1) 2023 assets and liabilities are all classified as Level 2 with the exception of equity investments of $4,473 million, which are classified as Level 1 and contingent consideration of $1,092 million, classified as Level 3. (2) Includes cross currency interest rate swaps and interest rate swaps. (3) Classified as non-current other assets. (4) Classified within cash equivalents and current marketable securities. (5) Classified as non-current other liabilities as of March 31, 2024 and December 31, 2023, respectively. (6) |
Marketable Securities | The Company's cash, cash equivalents and current marketable securities as of March 31, 2024 comprised: (Dollars in Millions) Carrying Amount Unrealized Gain Estimated Fair Value Cash & Cash Equivalents Current Marketable Securities Cash $3,410 — 3,410 3,410 — U.S. Gov't securities 96 — 96 96 — Non-U.S. sovereign securities 324 — 324 324 — U.S. reverse repurchase agreements 7,892 — 7,892 7,892 — Corporate debt securities (1) 702 — 702 588 114 Money market funds 3,822 — 3,822 3,822 — Time deposits (1) 626 — 626 626 — Subtotal 16,872 — 16,872 16,758 114 U.S. Gov’t securities 9,064 — 9,064 8,665 399 U.S. Gov’t Agencies 41 2 43 — 43 Other sovereign securities 2 — 2 — 2 Corporate debt securities 237 — 237 50 187 Subtotal available for sale debt (2) $9,344 2 9,346 8,715 631 Total cash, cash equivalents and current marketable securities $26,216 2 26,218 25,473 745 (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 March 31, 2024 are as follows: (Dollars in Millions) Cost Basis Fair Value Due within one year $9,331 9,333 Due after one year through five years 13 13 Due after five years through ten years — — Total debt securities $9,344 9,346 |
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 March 31, 2024: (Dollars in Millions) Carrying Amount Estimated Fair Value Financial Liabilities Current Debt $8,550 8,533 Non-Current Debt 0.55% Notes due 2025 974 940 2.46% Notes due 2026 1,998 1,917 2.95% Notes due 2027 907 958 0.95% Notes due 2027 1,434 1,337 2.90% Notes due 2028 1,497 1,422 1.150% Notes due 2028 (750MM Euro 1.0809) 807 751 6.95% Notes due 2029 298 339 1.30% Notes due 2030 1,633 1,466 4.95% Debentures due 2033 499 523 4.375% Notes due 2033 854 848 1.650% Notes due 2035 (1.5B Euro 1.0809) 1,610 1,430 3.587% Notes due 2036 862 893 5.95% Notes due 2037 994 1,110 3.625% Notes due 2037 1,354 1,333 3.40% Notes due 2038 993 858 5.85% Debentures due 2038 697 772 4.50% Debentures due 2040 541 530 2.10% Notes due 2040 844 688 4.85% Notes due 2041 297 301 4.50% Notes due 2043 496 481 3.73% Notes due 2046 1,978 1,675 3.75% Notes due 2047 825 829 3.50% Notes due 2048 743 598 2.25% Notes due 2050 816 629 2.45% Notes due 2060 1,064 743 Other 67 67 Total Non-Current Debt $25,082 23,438 |
Pensions and Other Benefit Pl_2
Pensions and Other Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost | 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 First Quarter Ended Retirement Plans Other Benefit Plans (Dollars in Millions) March 31, 2024 April 2, 2023 March 31, 2024 April 2, 2023 Service cost $224 210 69 68 Interest cost 352 352 52 54 Expected return on plan assets (642) (668) (2) (1) Amortization of prior service cost/ (credit) (46) (46) — — Recognized actuarial (gains)/losses 43 (50) 13 6 Curtailments and settlements — — — — Net periodic benefit cost/(credit) $(69) (202) 132 127 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Income | Components of other comprehensive income/(loss) consist of the following: (Dollars in Millions) Foreign Currency Translation Gain/ (Loss) On Securities Employee Benefit Plans Gain/ (Loss) On Derivatives & Hedges Total Accumulated Other Comprehensive Income/(Loss) December 31, 2023 $(10,149) (1) (2,000) (377) (12,527) Net change 2,123 2 52 (418) 1,759 March 31, 2024 (8,026) 1 (1,948) (795) (10,768) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 First Quarter Ended (Shares in Millions) March 31, 2024 April 2, 2023 Basic net earnings (loss) per share from continuing operations $1.35 (0.19) Basic net earnings per share from discontinued operations — 0.16 Total net earnings (loss) per share - basic 1.35 (0.03) Average shares outstanding — basic 2,408.2 2,605.5 Potential shares exercisable under stock option plans 87.6 — Less: shares which could be repurchased under treasury stock method (65.7) — Average shares outstanding — diluted/basic* 2,430.1 2,605.5 Diluted net earnings (loss) per share from continuing operations 1.34 (0.19) Diluted net earnings per share from discontinuing operations — 0.16 Total net earnings (loss) per share - diluted $1.34 (0.03) |
Segments of Business and Geog_2
Segments of Business and Geographic Areas (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Sales By Segment Of Business | Fiscal First Quarter Ended (Dollars in Millions) March 31, April 2, Percent INNOVATIVE MEDICINE Immunology U.S. $2,453 2,448 0.2 % International 1,794 1,664 7.9 Worldwide 4,247 4,112 3.3 REMICADE U.S. 266 276 (3.9) U.S. Exports 27 41 (32.7) International 141 170 (17.2) Worldwide 434 487 (10.9) SIMPONI / SIMPONI ARIA U.S. 254 271 (6.2) International 299 266 12.4 Worldwide 554 537 3.0 STELARA U.S. 1,396 1,451 (3.8) International 1,055 993 6.2 Worldwide 2,451 2,444 0.3 TREMFYA U.S. 509 406 25.4 International 299 234 27.9 Worldwide 808 640 26.3 OTHER IMMUNOLOGY U.S. 0 3 * International 0 0 — Worldwide 0 3 * Infectious Diseases U.S. 324 392 (17.4) International 497 1,193 (58.4) Worldwide 821 1,586 (48.3) COVID-19 VACCINE U.S. 0 0 — International 25 747 (96.6) Worldwide 25 747 (96.6) EDURANT / rilpivirine U.S. 8 9 (10.9) Fiscal First Quarter Ended (Dollars in Millions) March 31, April 2, Percent International 315 271 16.6 Worldwide 323 280 15.7 PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA U.S. 314 378 (16.9) International 104 99 5.5 Worldwide 418 477 (12.3) OTHER INFECTIOUS DISEASES U.S. 2 5 (68.8) International 52 77 (32.8) Worldwide 53 82 (35.1) Neuroscience U.S. 1,054 978 7.8 International 749 826 (9.3) Worldwide 1,803 1,804 0.0 CONCERTA / methylphenidate U.S. 41 70 (41.2) International 136 136 (0.1) Worldwide 177 206 (14.1) INVEGA SUSTENNA / XEPLION / INVEGA TRINZA / TREVICTA U.S. 765 713 7.2 International 292 331 (11.8) Worldwide 1,056 1,044 1.2 SPRAVATO U.S. 191 111 71.5 International 34 20 76.1 Worldwide 225 131 72.2 OTHER NEUROSCIENCE U.S. 58 84 (31.1) International 287 339 (15.5) Worldwide 345 423 (18.5) Oncology U.S. 2,383 1,889 26.2 International 2,430 2,223 9.3 Worldwide 4,814 4,112 17.1 CARVYKTI U.S. 140 70 99.8 International 16 2 * Worldwide 157 72 * DARZALEX U.S. 1,464 1,191 22.9 Fiscal First Quarter Ended (Dollars in Millions) March 31, April 2, Percent International 1,228 1,072 14.5 Worldwide 2,692 2,264 18.9 ERLEADA U.S. 285 249 14.1 International 404 293 38.0 Worldwide 689 542 27.0 IMBRUVICA U.S. 265 270 (1.5) International 518 557 (7.0) Worldwide 784 827 (5.2) TECVAYLI (1) U.S. 101 57 76.7 International 33 6 * Worldwide 133 63 * ZYTIGA / abiraterone acetate U.S. 9 16 (41.3) International 172 229 (24.8) Worldwide 181 245 (25.9) OTHER ONCOLOGY U.S. 119 35 * International 60 64 (6.1) Worldwide 178 99 80.2 Pulmonary Hypertension U.S. 766 600 27.5 International 283 272 4.1 Worldwide 1,049 872 20.2 OPSUMIT U.S. 356 273 30.4 International 169 167 0.8 Worldwide 524 440 19.1 UPTRAVI U.S. 392 304 29.0 International 76 58 30.7 Worldwide 468 362 29.2 OTHER PULMONARY HYPERTENSION U.S. 18 23 (24.6) International 39 47 (16.9) Worldwide 56 70 (19.5) Cardiovascular / Metabolism / Other U.S. 631 715 (11.7) International 197 212 (7.0) Worldwide 829 927 (10.6) Fiscal First Quarter Ended (Dollars in Millions) March 31, April 2, Percent XARELTO U.S. 518 578 (10.4) International — — — Worldwide 518 578 (10.4) OTHER U.S. 114 137 (17.1) International 197 212 (7.0) Worldwide 311 349 (11.0) TOTAL INNOVATIVE MEDICINE U.S. 7,612 7,023 8.4 International 5,950 6,390 (6.9) Worldwide 13,562 13,413 1.1 MEDTECH Cardiovascular (2) U.S. 1,025 863 18.8 International 781 640 22.1 Worldwide 1,806 1,503 20.2 ELECTROPHYSIOLOGY U.S. 692 571 21.3 International 652 522 24.9 Worldwide 1,344 1,092 23.0 ABIOMED U.S. 303 264 15.0 International 67 60 12.4 Worldwide 371 324 14.5 OTHER CARDIOVASCULAR (2) U.S. 30 28 3.3 International 62 58 6.9 Worldwide 92 87 5.7 Orthopaedics U.S. 1,448 1,363 6.2 International 892 881 1.3 Worldwide 2,340 2,245 4.3 HIPS U.S. 270 241 12.1 International 152 149 1.7 Worldwide 422 390 8.1 KNEES U.S. 242 226 6.9 International 160 142 12.3 Worldwide 401 368 9.0 Fiscal First Quarter Ended (Dollars in Millions) March 31, April 2, Percent TRAUMA U.S. 504 491 2.8 International 261 267 (2.3) Worldwide 765 757 1.0 SPINE, SPORTS & OTHER U.S. 432 406 6.5 International 320 323 (0.9) Worldwide 752 729 3.2 Surgery U.S. 987 975 1.2 International 1,429 1,459 (2.0) Worldwide 2,416 2,434 (0.7) ADVANCED U.S. 446 444 0.2 International 641 673 (4.7) Worldwide 1,087 1,118 (2.8) GENERAL U.S. 542 531 2.1 International 788 785 0.3 Worldwide 1,330 1,316 1.0 Vision U.S. 547 558 (1.8) International 710 743 (4.4) Worldwide 1,258 1,300 (3.3) CONTACT LENSES / OTHER U.S. 438 444 (1.4) International 472 509 (7.4) Worldwide 910 953 (4.6) SURGICAL U.S. 110 114 (3.7) International 238 233 2.2 Worldwide 348 347 0.3 TOTAL MEDTECH U.S. 4,008 3,759 6.6 International 3,813 3,722 2.4 Worldwide 7,821 7,481 4.5 WORLDWIDE U.S. 11,620 10,782 7.8 International 9,763 10,112 (3.4) Worldwide $21,383 20,894 2.3 % * Percentage greater than 100% or not meaningful (1) Previously included in Other Oncology (2) Previously referred to as Interventional Solutions |
Operating Profit by Segment of Business | Fiscal First Quarter Ended (Dollars in Millions) March 31, April 2, Percent Innovative Medicine (1) $4,969 4,402 12.9 % MedTech (2) 1,520 1,409 7.9 Segment earnings before provision for taxes 6,489 5,811 11.7 Less: Expense not allocated to segments (3) 2,775 7,098 Worldwide income (loss) before tax $3,714 (1,287) (1) Innovative Medicine includes: • Intangible amortization expense of $0.7 billion in both the fiscal first quarter of 2024 and 2023. • One-time COVID-19 Vaccine related exit costs of $0.4 billion in the fiscal first quarter of 2023. • A restructuring related charge of $0.1 billion in both the fiscal first quarter of 2024 and 2023. (2) MedTech includes: • Intangible amortization expense of $0.4 billion in both the fiscal first quarter of 2024 and 2023. (3 ) Amounts not allocated to segments include interest (income)/expense and general corporate (income)/expense. The fiscal first quarters of 2024 and 2023 include charges for talc matters of $2.7 billion and $6.9 billion, respectively (See Note 11, Legal Proceedings, for additional details). |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | Fiscal First Quarter Ended (Dollars in Millions) March 31, 2024 April 2, 2023 Percent United States $11,620 10,782 7.8 % Europe 5,163 5,590 (7.6) Western Hemisphere, excluding U.S. 1,194 1,076 11.0 Asia-Pacific, Africa 3,406 3,446 (1.1) Total $21,383 20,894 2.3 % |
Legal Proceedings (Tables)
Legal Proceedings (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary Of Claims In Pending Lawsuits | The table below contains the most significant of these cases and provides the approximate number of plaintiffs in the United States with direct claims in pending lawsuits regarding injuries allegedly due to the relevant product or product category as of March 31, 2024: Product or product category Number of plaintiffs Body powders containing talc, primarily JOHNSON’S Baby Powder 61,490 DePuy ASR XL Acetabular System and DePuy ASR Hip Resurfacing System 160 PINNACLE Acetabular Cup System 920 Pelvic meshes 6,440 ETHICON PHYSIOMESH Flexible Composite Mesh 230 RISPERDAL 50 ELMIRON 2,150 |
Kenvue Separation (Tables)
Kenvue Separation (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | Details of Net Earnings from Discontinued Operations, net of taxes are as follows: Fiscal First Quarter Ended (Dollars in Millions) April 2, 2023 Sales to customers $3,852 Cost of products sold 1,708 Gross profit 2,144 Selling, marketing and administrative expenses 1,232 Research and development expense 108 Interest Income (37) Interest expense, net of portion capitalized 3 Other (income) expense, net 288 Earnings from Discontinued Operations Before Provision for Taxes on Income 550 Provision for taxes on income 127 Net earnings from Discontinued Operations $423 The following table presents depreciation, amortization and capital expenditures of the discontinued operations related to Kenvue: Fiscal First Quarter Ended (Dollars in Millions) April 2, 2023 Depreciation and Amortization $153 Capital expenditures $47 |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve | The following table summarizes the restructuring expenses for 2024: (Pre-tax Dollars in Millions) Fiscal First Quarter Ended Innovative Medicine Segment (1) $144 MedTech Segment (2) 27 Total Programs $171 (1) Included in Restructuring on the Consolidated Statement of Earnings (2) Included $20 million in Restructuring and $7 million in Cost of products sold on the Consolidated Statement of Earnings |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Accounting Policies [Abstract] | ||
Supplier finance program, payment timing, period | 90 days | |
Supplier finance program, obligation | $ 600 | $ 700 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 2,331 | $ 2,355 |
Goods in process | 2,172 | 1,952 |
Finished goods | 6,880 | 6,874 |
Total inventories | $ 11,383 | $ 11,181 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Intangible assets with indefinite lives: | ||
Total intangible assets with indefinite lives | $ 12,726 | $ 10,929 |
Total intangible assets — net | 34,286 | 34,175 |
Trademarks | ||
Intangible assets with indefinite lives: | ||
Total intangible assets with indefinite lives | 1,649 | 1,714 |
Purchased In-Process Research And Development | ||
Intangible assets with indefinite lives: | ||
Total intangible assets with indefinite lives | 11,077 | 9,215 |
Patents And Trademarks | ||
Intangible assets with definite lives: | ||
Finite-lived intangible assets, gross | 39,198 | 40,417 |
Less accumulated amortization | (24,826) | (24,808) |
Finite-lived intangible assets, net | 14,372 | 15,609 |
Customer relationships and other intangible assets | ||
Intangible assets with definite lives: | ||
Finite-lived intangible assets, gross | 19,930 | 20,322 |
Less accumulated amortization | (12,742) | (12,685) |
Finite-lived intangible assets, net | $ 7,188 | $ 7,637 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill - Goodwill By Segment (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Goodwill [Roll Forward] | |
Goodwill Beginning of Period | $ 36,558 |
Goodwill, related to acquisitions | 290 |
Goodwill, related to divestitures | 0 |
Currency translation/Other | (232) |
Goodwill End of Period | 36,616 |
Innovative Medicine | |
Goodwill [Roll Forward] | |
Goodwill Beginning of Period | 10,407 |
Goodwill, related to acquisitions | 290 |
Goodwill, related to divestitures | 0 |
Currency translation/Other | (145) |
Goodwill End of Period | 10,552 |
MedTech | |
Goodwill [Roll Forward] | |
Goodwill Beginning of Period | 26,151 |
Goodwill, related to acquisitions | 0 |
Goodwill, related to divestitures | 0 |
Currency translation/Other | (87) |
Goodwill End of Period | $ 26,064 |
Intangible Assets and Goodwil_4
Intangible Assets and Goodwill - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Apr. 02, 2023 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization expense of amortizable intangible assets | $ 1,100 | $ 1,100 |
Patents And Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life (in years) | 11 years | |
Customer relationships and other intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life (in years) | 18 years |
Intangible Assets and Goodwil_5
Intangible Assets and Goodwill - Intangible Asset Amortization Expense (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2024 | $ 4,300 |
2025 | 3,500 |
2026 | 2,900 |
2027 | 2,300 |
2028 | $ 1,600 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2024 | Oct. 01, 2023 | Dec. 31, 2023 | |
Derivative [Line Items] | |||
Accumulated other comprehensive income on derivatives, after tax | $ 795 | ||
Hedging exposure | 18 months | ||
Weighted average interest rate on non-current debt | 2.99% | ||
Excess of carrying value over fair value of debt | $ 1,000 | ||
Current Debt | $ 8,550 | $ 3,451 | |
Commercial Paper | |||
Derivative [Line Items] | |||
Current Debt | $ 6,300 | ||
Weighted average interest rate | 5.25% | ||
Term | 3 months | ||
Forward foreign exchange contracts | |||
Derivative [Line Items] | |||
Collateral already posted, aggregate fair value | $ 2,200 | ||
Derivative, notional amount | 43,200 | 42,900 | |
Cross currency interest rate swaps | |||
Derivative [Line Items] | |||
Derivative, notional amount | 39,600 | 39,700 | |
Interest Rate Swap | |||
Derivative [Line Items] | |||
Derivative, notional amount | $ 10,000 | $ 10,000 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Derivative Activity (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Apr. 02, 2023 | |
Other (income) expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) reclassified from AOCI into income | $ 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 |
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 |
Amount of gain or (loss) recognized in AOCI | 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 |
Amount of gain or (loss) recognized in AOCI | 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 |
Amount of gain or (loss) recognized in AOCI | 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 | 8 | 169 |
Amount of gain or (loss) recognized in AOCI | (8) | (169) |
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 |
Amount of gain or (loss) recognized in AOCI | 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 | 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 | 34 |
Amount of gain or (loss) recognized in AOCI | 34 | 34 |
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 |
Cash Flow Hedging | Forward foreign exchange contracts | Sales to customers | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) recognized in AOCI | (3) | 24 |
Amount of gain or (loss) reclassified from AOCI into income | 1 | 12 |
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 | (19) | 145 |
Amount of gain or (loss) reclassified from AOCI into income | 165 | (146) |
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 | 22 | (36) |
Amount of gain or (loss) reclassified from AOCI into income | 4 | (13) |
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 |
Amount of gain or (loss) reclassified from AOCI into income | 0 | 0 |
Cash Flow Hedging | Forward foreign exchange contracts | Other (income) expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) recognized in AOCI | 4 | (14) |
Amount of gain or (loss) reclassified from AOCI into income | (2) | 2 |
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 |
Amount of gain or (loss) reclassified from AOCI into income | 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 |
Amount of gain or (loss) reclassified from AOCI into income | 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 |
Amount of gain or (loss) reclassified from AOCI into income | 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 | (205) | 417 |
Amount of gain or (loss) reclassified from AOCI into income | 49 | 108 |
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 |
Amount of gain or (loss) reclassified from AOCI into income | $ 0 | $ 0 |
Fair Value Measurements - Deriv
Fair Value Measurements - Derivatives, Balance Sheet Location (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Derivative [Line Items] | ||
Carrying Amount of the Hedged Liability | $ 3,980 | $ 6,037 |
Long-term Debt | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Carrying Amount of the Hedged Liability | 8,871 | 8,862 |
Cumulative Amount of Fair Value Hedging Gain/ (Loss) Included in the Carrying Amount of the Hedged Liability | $ (1,205) | $ (1,216) |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Effect of Derivatives not Designated as Hedging Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Apr. 02, 2023 | |
Not Designated as Hedging Instrument | Forward foreign exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain/(Loss) Recognized In Income on Derivative | $ 25 | $ (31) |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Effect of Net Investment Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Apr. 02, 2023 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain/(Loss) Recognized In Accumulated OCI | $ 84 | $ (77) |
Other Income Expense Net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) reclassified from AOCI into income | 0 | 0 |
Cross Currency Interest Rate Contract | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain/(Loss) Recognized In Accumulated OCI | 728 | 690 |
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 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Activity Related to Equity Investments (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Aug. 23, 2023 | Mar. 31, 2024 | Dec. 31, 2023 | |
Equity Investment [Roll Forward] | |||
Non Current Other Assets | $ 14,125 | $ 14,153 | |
Kenvue Inc. | Johnson & Johnson | |||
Equity Investment [Roll Forward] | |||
Percentage ownership after transaction | 9.50% | ||
Equity Securities | Equity Investments with readily determinable value* | |||
Equity Investment [Roll Forward] | |||
Carrying value, beginning of period | 4,473 | ||
Equity, Fair Value Adjustment | 30 | ||
Sales/ Purchases/Other | (17) | ||
Carrying value, end of period | 4,486 | ||
Non Current Other Assets | 4,486 | ||
Equity Securities | Equity Investments without readily determinable value | |||
Equity Investment [Roll Forward] | |||
Carrying value, beginning of period | 696 | ||
Equity, Fair Value Adjustment | 23 | ||
Sales/ Purchases/Other | (12) | ||
Carrying value, end of period | 707 | ||
Non Current Other Assets | $ 707 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities at Fair Value (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Apr. 02, 2023 | Dec. 31, 2023 | |
Financial assets and liabilities at fair value | |||
Derivatives designated as hedging instruments : Assets | $ 1,701 | ||
Derivatives designated as hedging instruments : Liabilities | 3,944 | ||
Available-for-sale Securities, Equity Securities | 4,486 | $ 4,473 | |
Available-for-sale Securities | 9,346 | 8,874 | |
Contingent consideration | 1,114 | 1,092 | |
Total Gross Assets | 1,722 | 1,591 | |
Credit Support Agreement (CSA) | (1,681) | (1,575) | |
Total Net Asset | 41 | 16 | |
Total Gross Liabilities | 3,980 | 6,037 | |
Credit Support Agreement (CSA) | (3,882) | (5,604) | |
Total Net Liabilities | 98 | 433 | |
Beginning Balance | 1,092 | $ 1,120 | |
Changes in estimated fair value(6) | 22 | 23 | |
Additions | 0 | 0 | |
Payments | 0 | (1) | |
Ending Balance | 1,114 | $ 1,142 | |
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 | 4,486 | 4,473 | |
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 | 1,701 | 1,527 | |
Derivatives designated as hedging instruments : Liabilities | 3,944 | 5,962 | |
Available-for-sale Securities, Equity Securities | 0 | ||
Available-for-sale Securities | 9,346 | ||
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 | 1,114 | 1,092 | |
Interest Rate Contract | |||
Financial assets and liabilities at fair value | |||
Derivatives designated as hedging instruments : Assets | 1,202 | ||
Derivatives designated as hedging instruments : Liabilities | 3,543 | ||
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 | 1,202 | 988 | |
Derivatives designated as hedging instruments : Liabilities | 3,543 | 5,338 | |
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 | 499 | ||
Derivatives designated as hedging instruments : Liabilities | 401 | ||
Derivatives not designated as hedging instruments : Assets | 21 | ||
Derivatives not designated as hedging instruments : Liabilities | 36 | ||
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 | 499 | 539 | |
Derivatives designated as hedging instruments : Liabilities | 401 | 624 | |
Derivatives not designated as hedging instruments : Assets | 21 | 64 | |
Derivatives not designated as hedging instruments : Liabilities | 36 | $ 75 | |
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 |
Fair Value Measurements - Cash,
Fair Value Measurements - Cash, Cash Equivalents and Marketable Securities (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Securities, Available-for-sale [Abstract] | ||
Available-for-sale Securities - Estimated Fair Value | $ 9,346 | $ 8,874 |
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Cash and Cash Equivalents | 25,473 | 21,859 |
Marketable securities | 745 | $ 1,068 |
Total cash, cash equivalents and current marketable securities, Carrying Amount | 26,216 | |
Total cash, cash equivalents and current marketable securities, Unrealized Gain | 2 | |
Total cash, cash equivalents and current marketable securities, Estimated Fair Value | 26,218 | |
Held-to-maturity Securities | ||
Debt Securities, Held-to-maturity [Abstract] | ||
Held-to-maturity Securities - Carrying Amount | 16,872 | |
Held-to-maturity Securities, Unrecognized Gain | 0 | |
Held-to-maturity Securities - Estimated Fair Value | 16,872 | |
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Cash and Cash Equivalents | 16,758 | |
Marketable securities | 114 | |
Held-to-maturity Securities | Cash | ||
Debt Securities, Held-to-maturity [Abstract] | ||
Held-to-maturity Securities - Carrying Amount | 3,410 | |
Held-to-maturity Securities, Unrecognized Gain | 0 | |
Held-to-maturity Securities - Estimated Fair Value | 3,410 | |
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Cash and Cash Equivalents | 3,410 | |
Marketable securities | 0 | |
Held-to-maturity Securities | U.S. Gov't securities | ||
Debt Securities, Held-to-maturity [Abstract] | ||
Held-to-maturity Securities - Carrying Amount | 96 | |
Held-to-maturity Securities, Unrecognized Gain | 0 | |
Held-to-maturity Securities - Estimated Fair Value | 96 | |
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Cash and Cash Equivalents | 96 | |
Marketable securities | 0 | |
Held-to-maturity Securities | Non-U.S. sovereign securities | ||
Debt Securities, Held-to-maturity [Abstract] | ||
Held-to-maturity Securities - Carrying Amount | 324 | |
Held-to-maturity Securities, Unrecognized Gain | 0 | |
Held-to-maturity Securities - Estimated Fair Value | 324 | |
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Cash and Cash Equivalents | 324 | |
Marketable securities | 0 | |
Held-to-maturity Securities | U.S. reverse repurchase agreements | ||
Debt Securities, Held-to-maturity [Abstract] | ||
Held-to-maturity Securities - Carrying Amount | 7,892 | |
Held-to-maturity Securities, Unrecognized Gain | 0 | |
Held-to-maturity Securities - Estimated Fair Value | 7,892 | |
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Cash and Cash Equivalents | 7,892 | |
Marketable securities | 0 | |
Held-to-maturity Securities | Corporate debt securities(1) | ||
Debt Securities, Held-to-maturity [Abstract] | ||
Held-to-maturity Securities - Carrying Amount | 702 | |
Held-to-maturity Securities, Unrecognized Gain | 0 | |
Held-to-maturity Securities - Estimated Fair Value | 702 | |
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Cash and Cash Equivalents | 588 | |
Marketable securities | 114 | |
Held-to-maturity Securities | Money market funds | ||
Debt Securities, Held-to-maturity [Abstract] | ||
Held-to-maturity Securities - Carrying Amount | 3,822 | |
Held-to-maturity Securities, Unrecognized Gain | 0 | |
Held-to-maturity Securities - Estimated Fair Value | 3,822 | |
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Cash and Cash Equivalents | 3,822 | |
Marketable securities | 0 | |
Held-to-maturity Securities | Time deposits(1) | ||
Debt Securities, Held-to-maturity [Abstract] | ||
Held-to-maturity Securities - Carrying Amount | 626 | |
Held-to-maturity Securities, Unrecognized Gain | 0 | |
Held-to-maturity Securities - Estimated Fair Value | 626 | |
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Cash and Cash Equivalents | 626 | |
Marketable securities | 0 | |
Available-for-sale Securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Available-for-sale Securities - Carrying Amount | 9,344 | |
Available-for-sale Securities, Unrecognized Gain | 2 | |
Available-for-sale Securities - Estimated Fair Value | 9,346 | |
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Cash and Cash Equivalents | 8,715 | |
Marketable securities | 631 | |
Available-for-sale Securities | U.S. Gov’t securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Available-for-sale Securities - Carrying Amount | 9,064 | |
Available-for-sale Securities - Estimated Fair Value | 9,064 | |
Available-for-sale Securities | U.S. Gov’t Agencies | ||
Debt Securities, Available-for-sale [Abstract] | ||
Available-for-sale Securities - Carrying Amount | 41 | |
Available-for-sale Securities - Estimated Fair Value | 43 | |
Available-for-sale Securities | Non-U.S. sovereign securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Available-for-sale Securities - Carrying Amount | 2 | |
Available-for-sale Securities - Estimated Fair Value | 2 | |
Available-for-sale Securities | Corporate debt securities(1) | ||
Debt Securities, Available-for-sale [Abstract] | ||
Available-for-sale Securities - Carrying Amount | 237 | |
Available-for-sale Securities - Estimated Fair Value | 237 | |
Available-for-sale Securities | Non-U.S. sovereign securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Available-for-sale Securities, Unrecognized Gain | 0 | |
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Cash and Cash Equivalents | 0 | |
Marketable securities | 2 | |
Available-for-sale Securities | Corporate debt securities(1) | ||
Debt Securities, Available-for-sale [Abstract] | ||
Available-for-sale Securities, Unrecognized Gain | 0 | |
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Cash and Cash Equivalents | 50 | |
Marketable securities | 187 | |
Available-for-sale Securities | U.S. Gov’t securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Available-for-sale Securities, Unrecognized Gain | 0 | |
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Cash and Cash Equivalents | 8,665 | |
Marketable securities | 399 | |
Available-for-sale Securities | U.S. Gov’t Agencies | ||
Debt Securities, Available-for-sale [Abstract] | ||
Available-for-sale Securities, Unrecognized Gain | 2 | |
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Cash and Cash Equivalents | 0 | |
Marketable securities | $ 43 |
Fair Value Measurements - Sch_3
Fair Value Measurements - Schedule of Available for Sale Securities Maturities (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Cost Basis | |
Due within one year | $ 9,331 |
Due after one year through five years | 13 |
Due after five years through ten years | 0 |
Total debt securities | 9,344 |
Fair Value | |
Due within one year | 9,333 |
Due after one year through five years | 13 |
Due after five years through ten years | 0 |
Total debt securities | $ 9,346 |
Fair Value Measurements - Fin_2
Fair Value Measurements - Financial Liabilities not Measured at Fair Value (Details) | Mar. 31, 2024 USD ($) | Mar. 31, 2024 EUR (€) | Dec. 31, 2023 USD ($) |
Financial Liabilities | |||
Current Debt | $ 8,550,000,000 | $ 3,451,000,000 | |
Non-Current Debt | |||
Non-Current Debt | 25,082,000,000 | $ 25,881,000,000 | |
Carrying Amount | |||
Financial Liabilities | |||
Current Debt | 8,550,000,000 | ||
Non-Current Debt | |||
Non-Current Debt | 25,082,000,000 | ||
Estimated Fair Value | |||
Financial Liabilities | |||
Current Debt | 8,533,000,000 | ||
Non-Current Debt | |||
Non-Current Debt | $ 23,438,000,000 | ||
0.55% Notes due 2025 | |||
Non-Current Debt | |||
Stated interest rate (as a percent) | 0.55% | 0.55% | |
0.55% Notes due 2025 | Carrying Amount | |||
Non-Current Debt | |||
Non-Current Debt | $ 974,000,000 | ||
0.55% Notes due 2025 | Estimated Fair Value | |||
Non-Current Debt | |||
Non-Current Debt | $ 940,000,000 | ||
2.46% Notes due 2026 | |||
Non-Current Debt | |||
Stated interest rate (as a percent) | 2.46% | 2.46% | |
2.46% Notes due 2026 | Carrying Amount | |||
Non-Current Debt | |||
Non-Current Debt | $ 1,998,000,000 | ||
2.46% Notes due 2026 | Estimated Fair Value | |||
Non-Current Debt | |||
Non-Current Debt | $ 1,917,000,000 | ||
2.95% Notes due 2027 | |||
Non-Current Debt | |||
Stated interest rate (as a percent) | 2.95% | 2.95% | |
2.95% Notes due 2027 | Carrying Amount | |||
Non-Current Debt | |||
Non-Current Debt | $ 907,000,000 | ||
2.95% Notes due 2027 | Estimated Fair Value | |||
Non-Current Debt | |||
Non-Current Debt | $ 958,000,000 | ||
0.95% Notes due 2027 | |||
Non-Current Debt | |||
Stated interest rate (as a percent) | 0.95% | 0.95% | |
0.95% Notes due 2027 | Carrying Amount | |||
Non-Current Debt | |||
Non-Current Debt | $ 1,434,000,000 | ||
0.95% Notes due 2027 | Estimated Fair Value | |||
Non-Current Debt | |||
Non-Current Debt | $ 1,337,000,000 | ||
2.90% Notes due 2028 | |||
Non-Current Debt | |||
Stated interest rate (as a percent) | 2.90% | 2.90% | |
2.90% Notes due 2028 | Carrying Amount | |||
Non-Current Debt | |||
Non-Current Debt | $ 1,497,000,000 | ||
2.90% Notes due 2028 | Estimated Fair Value | |||
Non-Current Debt | |||
Non-Current Debt | $ 1,422,000,000 | ||
1.150% Notes due 2028 (750MM Euro 1.0809) | |||
Non-Current Debt | |||
Stated interest rate (as a percent) | 1.15% | 1.15% | |
Debt instrument, face amount | € | € 750,000,000 | ||
Foreign exchange rate | 1.0809 | 1.0809 | |
1.150% Notes due 2028 (750MM Euro 1.0809) | Carrying Amount | |||
Non-Current Debt | |||
Non-Current Debt | $ 807,000,000 | ||
1.150% Notes due 2028 (750MM Euro 1.0809) | Estimated Fair Value | |||
Non-Current Debt | |||
Non-Current Debt | $ 751,000,000 | ||
6.95% Notes due 2029 | |||
Non-Current Debt | |||
Stated interest rate (as a percent) | 6.95% | 6.95% | |
6.95% Notes due 2029 | Carrying Amount | |||
Non-Current Debt | |||
Non-Current Debt | $ 298,000,000 | ||
6.95% Notes due 2029 | Estimated Fair Value | |||
Non-Current Debt | |||
Non-Current Debt | $ 339,000,000 | ||
1.30% Notes due 2030 | |||
Non-Current Debt | |||
Stated interest rate (as a percent) | 1.30% | 1.30% | |
1.30% Notes due 2030 | Carrying Amount | |||
Non-Current Debt | |||
Non-Current Debt | $ 1,633,000,000 | ||
1.30% Notes due 2030 | Estimated Fair Value | |||
Non-Current Debt | |||
Non-Current Debt | $ 1,466,000,000 | ||
4.95% Debentures due 2033 | |||
Non-Current Debt | |||
Stated interest rate (as a percent) | 4.95% | 4.95% | |
4.95% Debentures due 2033 | Carrying Amount | |||
Non-Current Debt | |||
Non-Current Debt | $ 499,000,000 | ||
4.95% Debentures due 2033 | Estimated Fair Value | |||
Non-Current Debt | |||
Non-Current Debt | $ 523,000,000 | ||
4.375% Notes due 2033 | |||
Non-Current Debt | |||
Stated interest rate (as a percent) | 4.375% | 4.375% | |
4.375% Notes due 2033 | Carrying Amount | |||
Non-Current Debt | |||
Non-Current Debt | $ 854,000,000 | ||
4.375% Notes due 2033 | Estimated Fair Value | |||
Non-Current Debt | |||
Non-Current Debt | 848,000,000 | ||
1.650% Notes due 2035 (1.5B Euro 1.0809) | Carrying Amount | |||
Non-Current Debt | |||
Non-Current Debt | $ 1,610,000,000 | ||
Stated interest rate (as a percent) | 1.65% | 1.65% | |
Debt instrument, face amount | $ 1,500,000,000 | ||
Foreign exchange rate | 1.0809 | 1.0809 | |
1.650% Notes due 2035 (1.5B Euro 1.0809) | Estimated Fair Value | |||
Non-Current Debt | |||
Non-Current Debt | $ 1,430,000,000 | ||
3.587% Notes due 2036 | |||
Non-Current Debt | |||
Stated interest rate (as a percent) | 3.587% | 3.587% | |
3.587% Notes due 2036 | Carrying Amount | |||
Non-Current Debt | |||
Non-Current Debt | $ 862,000,000 | ||
3.587% Notes due 2036 | Estimated Fair Value | |||
Non-Current Debt | |||
Non-Current Debt | $ 893,000,000 | ||
5.95% Notes due 2037 | |||
Non-Current Debt | |||
Stated interest rate (as a percent) | 5.95% | 5.95% | |
5.95% Notes due 2037 | Carrying Amount | |||
Non-Current Debt | |||
Non-Current Debt | $ 994,000,000 | ||
5.95% Notes due 2037 | Estimated Fair Value | |||
Non-Current Debt | |||
Non-Current Debt | $ 1,110,000,000 | ||
3.625% Notes due 2037 | |||
Non-Current Debt | |||
Stated interest rate (as a percent) | 3.625% | 3.625% | |
3.625% Notes due 2037 | Carrying Amount | |||
Non-Current Debt | |||
Non-Current Debt | $ 1,354,000,000 | ||
3.625% Notes due 2037 | Estimated Fair Value | |||
Non-Current Debt | |||
Non-Current Debt | $ 1,333,000,000 | ||
3.40% Notes due 2038 | |||
Non-Current Debt | |||
Stated interest rate (as a percent) | 3.40% | 3.40% | |
3.40% Notes due 2038 | Carrying Amount | |||
Non-Current Debt | |||
Non-Current Debt | $ 993,000,000 | ||
3.40% Notes due 2038 | Estimated Fair Value | |||
Non-Current Debt | |||
Non-Current Debt | $ 858,000,000 | ||
5.85% Debentures due 2038 | |||
Non-Current Debt | |||
Stated interest rate (as a percent) | 5.85% | 5.85% | |
5.85% Debentures due 2038 | Carrying Amount | |||
Non-Current Debt | |||
Non-Current Debt | $ 697,000,000 | ||
5.85% Debentures due 2038 | Estimated Fair Value | |||
Non-Current Debt | |||
Non-Current Debt | $ 772,000,000 | ||
4.50% Debentures due 2040 | |||
Non-Current Debt | |||
Stated interest rate (as a percent) | 4.50% | 4.50% | |
4.50% Debentures due 2040 | Carrying Amount | |||
Non-Current Debt | |||
Non-Current Debt | $ 541,000,000 | ||
4.50% Debentures due 2040 | Estimated Fair Value | |||
Non-Current Debt | |||
Non-Current Debt | $ 530,000,000 | ||
2.10% Notes due 2040 | |||
Non-Current Debt | |||
Stated interest rate (as a percent) | 2.10% | 2.10% | |
2.10% Notes due 2040 | Carrying Amount | |||
Non-Current Debt | |||
Non-Current Debt | $ 844,000,000 | ||
2.10% Notes due 2040 | Estimated Fair Value | |||
Non-Current Debt | |||
Non-Current Debt | $ 688,000,000 | ||
4.85% Notes due 2041 | |||
Non-Current Debt | |||
Stated interest rate (as a percent) | 4.85% | 4.85% | |
4.85% Notes due 2041 | Carrying Amount | |||
Non-Current Debt | |||
Non-Current Debt | $ 297,000,000 | ||
4.85% Notes due 2041 | Estimated Fair Value | |||
Non-Current Debt | |||
Non-Current Debt | $ 301,000,000 | ||
4.50% Notes due 2043 | |||
Non-Current Debt | |||
Stated interest rate (as a percent) | 4.50% | 4.50% | |
4.50% Notes due 2043 | Carrying Amount | |||
Non-Current Debt | |||
Non-Current Debt | $ 496,000,000 | ||
4.50% Notes due 2043 | Estimated Fair Value | |||
Non-Current Debt | |||
Non-Current Debt | $ 481,000,000 | ||
3.73% Notes due 2046 | |||
Non-Current Debt | |||
Stated interest rate (as a percent) | 3.73% | 3.73% | |
3.73% Notes due 2046 | Carrying Amount | |||
Non-Current Debt | |||
Non-Current Debt | $ 1,978,000,000 | ||
3.73% Notes due 2046 | Estimated Fair Value | |||
Non-Current Debt | |||
Non-Current Debt | $ 1,675,000,000 | ||
3.75% Notes due 2047 | |||
Non-Current Debt | |||
Stated interest rate (as a percent) | 3.75% | 3.75% | |
3.75% Notes due 2047 | Carrying Amount | |||
Non-Current Debt | |||
Non-Current Debt | $ 825,000,000 | ||
3.75% Notes due 2047 | Estimated Fair Value | |||
Non-Current Debt | |||
Non-Current Debt | $ 829,000,000 | ||
3.50% Notes due 2048 | |||
Non-Current Debt | |||
Stated interest rate (as a percent) | 3.50% | 3.50% | |
3.50% Notes due 2048 | Carrying Amount | |||
Non-Current Debt | |||
Non-Current Debt | $ 743,000,000 | ||
3.50% Notes due 2048 | Estimated Fair Value | |||
Non-Current Debt | |||
Non-Current Debt | $ 598,000,000 | ||
2.25% Notes due 2050 | |||
Non-Current Debt | |||
Stated interest rate (as a percent) | 2.25% | 2.25% | |
2.25% Notes due 2050 | Carrying Amount | |||
Non-Current Debt | |||
Non-Current Debt | $ 816,000,000 | ||
2.25% Notes due 2050 | Estimated Fair Value | |||
Non-Current Debt | |||
Non-Current Debt | $ 629,000,000 | ||
2.45% Notes due 2060 | |||
Non-Current Debt | |||
Stated interest rate (as a percent) | 2.45% | 2.45% | |
2.45% Notes due 2060 | Carrying Amount | |||
Non-Current Debt | |||
Non-Current Debt | $ 1,064,000,000 | ||
2.45% Notes due 2060 | Estimated Fair Value | |||
Non-Current Debt | |||
Non-Current Debt | 743,000,000 | ||
Other | Carrying Amount | |||
Non-Current Debt | |||
Non-Current Debt | 67,000,000 | ||
Other | Estimated Fair Value | |||
Non-Current Debt | |||
Non-Current Debt | $ 67,000,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Apr. 02, 2023 | |
Income Tax Contingency | ||
Worldwide effective income tax rate (as a percent) | 12.40% | 61.80% |
Effective income tax rate reconciliation, tax settlement, percent | 23% | 23% |
Unrecognized tax benefits | $ 2,500 | |
Talc | CONSUMER HEALTH | ||
Income Tax Contingency | ||
Litigation expense | $ 2,700 | $ 6,900 |
Pensions and Other Benefit Pl_3
Pensions and Other Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Apr. 02, 2023 | |
Retirement Plans | ||
Components of net periodic benefit cost | ||
Service cost | $ 224 | $ 210 |
Interest cost | 352 | 352 |
Expected return on plan assets | (642) | (668) |
Amortization of prior service cost/(credit) | (46) | (46) |
Recognized actuarial (gains)/losses | 43 | (50) |
Curtailments and settlements | 0 | 0 |
Net periodic benefit cost/(credit) | (69) | (202) |
Other Benefit Plans | ||
Components of net periodic benefit cost | ||
Service cost | 69 | 68 |
Interest cost | 52 | 54 |
Expected return on plan assets | (2) | (1) |
Amortization of prior service cost/(credit) | 0 | 0 |
Recognized actuarial (gains)/losses | 13 | 6 |
Curtailments and settlements | 0 | 0 |
Net periodic benefit cost/(credit) | $ 132 | $ 127 |
Pensions and Other Benefit Pl_4
Pensions and Other Benefit Plans (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
U.S. | |
Defined Benefit Plan Disclosure [Line Items] | |
Contribution to pension plans | $ 29 |
Foreign Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Contribution to pension plans | $ 3 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Beginning balance | $ 68,774 |
Net change | 1,759 |
Ending balance | 70,020 |
Foreign Currency Translation | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Beginning balance | (10,149) |
Net change | 2,123 |
Ending balance | (8,026) |
Gain/ (Loss) On Securities | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Beginning balance | (1) |
Net change | 2 |
Ending balance | 1 |
Employee Benefit Plans | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Beginning balance | (2,000) |
Net change | 52 |
Ending balance | (1,948) |
Gain/ (Loss) On Derivatives & Hedges | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Beginning balance | (377) |
Net change | (418) |
Ending balance | (795) |
Total Accumulated Other Comprehensive Income/(Loss) | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Beginning balance | (12,527) |
Ending balance | $ (10,768) |
Earnings Per Share (Details)
Earnings Per Share (Details) - $ / shares shares in Millions | 3 Months Ended | |
Mar. 31, 2024 | Apr. 02, 2023 | |
Reconciliation of basic net earnings per share to diluted net earnings per share | ||
Continuing operations - basic (in dollars per share) | $ 1.35 | $ (0.19) |
Discontinued operations - basic (in dollars per share) | 0 | 0.16 |
Total net earnings per share - basic (in dollars per share) | $ 1.35 | $ (0.03) |
Average shares outstanding — basic | 2,408.2 | 2,605.5 |
Potential shares exercisable under stock option plans | 87.6 | 0 |
Less: shares which could be repurchased under treasury stock method | (65.7) | 0 |
Average shares outstanding — diluted/basic* | 2,430.1 | 2,605.5 |
Continuing operations - diluted (in dollars per share) | $ 1.34 | $ (0.19) |
Discontinued operations - diluted (in dollars per share) | 0 | 0.16 |
Total net earnings per share - diluted (in dollars per share) | $ 1.34 | $ (0.03) |
Antidilutive securities excluded from computation of earnings per share, amount | 44.2 |
Segments of Business and Geog_3
Segments of Business and Geographic Areas - Narrative (Details) | 3 Months Ended |
Mar. 31, 2024 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Segments of Business and Geog_4
Segments of Business and Geographic Areas - Sales By Segment Of Business (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Apr. 02, 2023 | |
Sales by segment of business | ||
Sales to customers | $ 21,383 | $ 20,894 |
Percent Change (as a percent) | 2.30% | |
U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 11,620 | 10,782 |
Percent Change (as a percent) | 7.80% | |
International | ||
Sales by segment of business | ||
Sales to customers | $ 9,763 | 10,112 |
Percent Change (as a percent) | (3.40%) | |
MEDTECH | ||
Sales by segment of business | ||
Sales to customers | $ 7,821 | 7,481 |
Percent Change (as a percent) | 4.50% | |
MEDTECH | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 4,008 | 3,759 |
Percent Change (as a percent) | 6.60% | |
MEDTECH | International | ||
Sales by segment of business | ||
Sales to customers | $ 3,813 | 3,722 |
Percent Change (as a percent) | 2.40% | |
MEDTECH | Cardiovascular(2) | ||
Sales by segment of business | ||
Sales to customers | $ 1,806 | 1,503 |
Percent Change (as a percent) | 20.20% | |
MEDTECH | Cardiovascular(2) | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 1,025 | 863 |
Percent Change (as a percent) | 18.80% | |
MEDTECH | Cardiovascular(2) | International | ||
Sales by segment of business | ||
Sales to customers | $ 781 | 640 |
Percent Change (as a percent) | 22.10% | |
MEDTECH | ELECTROPHYSIOLOGY | ||
Sales by segment of business | ||
Sales to customers | $ 1,344 | 1,092 |
Percent Change (as a percent) | 23% | |
MEDTECH | ELECTROPHYSIOLOGY | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 692 | 571 |
Percent Change (as a percent) | 21.30% | |
MEDTECH | ELECTROPHYSIOLOGY | International | ||
Sales by segment of business | ||
Sales to customers | $ 652 | 522 |
Percent Change (as a percent) | 24.90% | |
MEDTECH | ABIOMED | ||
Sales by segment of business | ||
Sales to customers | $ 371 | 324 |
Percent Change (as a percent) | 14.50% | |
MEDTECH | ABIOMED | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 303 | 264 |
Percent Change (as a percent) | 15% | |
MEDTECH | ABIOMED | International | ||
Sales by segment of business | ||
Sales to customers | $ 67 | 60 |
Percent Change (as a percent) | 12.40% | |
MEDTECH | OTHER CARDIOVASCULAR(2) | ||
Sales by segment of business | ||
Sales to customers | $ 92 | 87 |
Percent Change (as a percent) | 5.70% | |
MEDTECH | OTHER CARDIOVASCULAR(2) | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 30 | 28 |
Percent Change (as a percent) | 3.30% | |
MEDTECH | OTHER CARDIOVASCULAR(2) | International | ||
Sales by segment of business | ||
Sales to customers | $ 62 | 58 |
Percent Change (as a percent) | 6.90% | |
MEDTECH | Orthopaedics | ||
Sales by segment of business | ||
Sales to customers | $ 2,340 | 2,245 |
Percent Change (as a percent) | 4.30% | |
MEDTECH | Orthopaedics | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 1,448 | 1,363 |
Percent Change (as a percent) | 6.20% | |
MEDTECH | Orthopaedics | International | ||
Sales by segment of business | ||
Sales to customers | $ 892 | 881 |
Percent Change (as a percent) | 1.30% | |
MEDTECH | Orthopaedics | HIPS | ||
Sales by segment of business | ||
Sales to customers | $ 422 | 390 |
Percent Change (as a percent) | 8.10% | |
MEDTECH | Orthopaedics | HIPS | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 270 | 241 |
Percent Change (as a percent) | 12.10% | |
MEDTECH | Orthopaedics | HIPS | International | ||
Sales by segment of business | ||
Sales to customers | $ 152 | 149 |
Percent Change (as a percent) | 1.70% | |
MEDTECH | Orthopaedics | KNEES | ||
Sales by segment of business | ||
Sales to customers | $ 401 | 368 |
Percent Change (as a percent) | 9% | |
MEDTECH | Orthopaedics | KNEES | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 242 | 226 |
Percent Change (as a percent) | 6.90% | |
MEDTECH | Orthopaedics | KNEES | International | ||
Sales by segment of business | ||
Sales to customers | $ 160 | 142 |
Percent Change (as a percent) | 12.30% | |
MEDTECH | Orthopaedics | TRAUMA | ||
Sales by segment of business | ||
Sales to customers | $ 765 | 757 |
Percent Change (as a percent) | 1% | |
MEDTECH | Orthopaedics | TRAUMA | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 504 | 491 |
Percent Change (as a percent) | 2.80% | |
MEDTECH | Orthopaedics | TRAUMA | International | ||
Sales by segment of business | ||
Sales to customers | $ 261 | 267 |
Percent Change (as a percent) | (2.30%) | |
MEDTECH | Orthopaedics | SPINE, SPORTS & OTHER | ||
Sales by segment of business | ||
Sales to customers | $ 752 | 729 |
Percent Change (as a percent) | 3.20% | |
MEDTECH | Orthopaedics | SPINE, SPORTS & OTHER | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 432 | 406 |
Percent Change (as a percent) | 6.50% | |
MEDTECH | Orthopaedics | SPINE, SPORTS & OTHER | International | ||
Sales by segment of business | ||
Sales to customers | $ 320 | 323 |
Percent Change (as a percent) | (0.90%) | |
MEDTECH | Surgery | ||
Sales by segment of business | ||
Sales to customers | $ 2,416 | 2,434 |
Percent Change (as a percent) | (0.70%) | |
MEDTECH | Surgery | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 987 | 975 |
Percent Change (as a percent) | 1.20% | |
MEDTECH | Surgery | International | ||
Sales by segment of business | ||
Sales to customers | $ 1,429 | 1,459 |
Percent Change (as a percent) | (2.00%) | |
MEDTECH | Surgery | ADVANCED | ||
Sales by segment of business | ||
Sales to customers | $ 1,087 | 1,118 |
Percent Change (as a percent) | (2.80%) | |
MEDTECH | Surgery | ADVANCED | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 446 | 444 |
Percent Change (as a percent) | 0.20% | |
MEDTECH | Surgery | ADVANCED | International | ||
Sales by segment of business | ||
Sales to customers | $ 641 | 673 |
Percent Change (as a percent) | (4.70%) | |
MEDTECH | Surgery | GENERAL | ||
Sales by segment of business | ||
Sales to customers | $ 1,330 | 1,316 |
Percent Change (as a percent) | 1% | |
MEDTECH | Surgery | GENERAL | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 542 | 531 |
Percent Change (as a percent) | 2.10% | |
MEDTECH | Surgery | GENERAL | International | ||
Sales by segment of business | ||
Sales to customers | $ 788 | 785 |
Percent Change (as a percent) | 0.30% | |
MEDTECH | Vision | ||
Sales by segment of business | ||
Sales to customers | $ 1,258 | 1,300 |
Percent Change (as a percent) | (3.30%) | |
MEDTECH | Vision | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 547 | 558 |
Percent Change (as a percent) | (1.80%) | |
MEDTECH | Vision | International | ||
Sales by segment of business | ||
Sales to customers | $ 710 | 743 |
Percent Change (as a percent) | (4.40%) | |
MEDTECH | Vision | CONTACT LENSES / OTHER | ||
Sales by segment of business | ||
Sales to customers | $ 910 | 953 |
Percent Change (as a percent) | (4.60%) | |
MEDTECH | Vision | CONTACT LENSES / OTHER | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 438 | 444 |
Percent Change (as a percent) | (1.40%) | |
MEDTECH | Vision | CONTACT LENSES / OTHER | International | ||
Sales by segment of business | ||
Sales to customers | $ 472 | 509 |
Percent Change (as a percent) | (7.40%) | |
MEDTECH | Vision | SURGICAL | ||
Sales by segment of business | ||
Sales to customers | $ 348 | 347 |
Percent Change (as a percent) | 0.30% | |
MEDTECH | Vision | SURGICAL | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 110 | 114 |
Percent Change (as a percent) | (3.70%) | |
MEDTECH | Vision | SURGICAL | International | ||
Sales by segment of business | ||
Sales to customers | $ 238 | 233 |
Percent Change (as a percent) | 2.20% | |
Innovative Medicine | ||
Sales by segment of business | ||
Sales to customers | $ 13,562 | 13,413 |
Percent Change (as a percent) | 1.10% | |
Innovative Medicine | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 7,612 | 7,023 |
Percent Change (as a percent) | 8.40% | |
Innovative Medicine | International | ||
Sales by segment of business | ||
Sales to customers | $ 5,950 | 6,390 |
Percent Change (as a percent) | (6.90%) | |
Innovative Medicine | Immunology | ||
Sales by segment of business | ||
Sales to customers | $ 4,247 | 4,112 |
Percent Change (as a percent) | 3.30% | |
Innovative Medicine | Immunology | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 2,453 | 2,448 |
Percent Change (as a percent) | 0.20% | |
Innovative Medicine | Immunology | International | ||
Sales by segment of business | ||
Sales to customers | $ 1,794 | 1,664 |
Percent Change (as a percent) | 7.90% | |
Innovative Medicine | Immunology | REMICADE | ||
Sales by segment of business | ||
Sales to customers | $ 434 | 487 |
Percent Change (as a percent) | (10.90%) | |
Innovative Medicine | Immunology | REMICADE | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 266 | 276 |
Percent Change (as a percent) | (3.90%) | |
Innovative Medicine | Immunology | REMICADE | U.S. Exports | ||
Sales by segment of business | ||
Sales to customers | $ 27 | 41 |
Percent Change (as a percent) | (32.70%) | |
Innovative Medicine | Immunology | REMICADE | International | ||
Sales by segment of business | ||
Sales to customers | $ 141 | 170 |
Percent Change (as a percent) | (17.20%) | |
Innovative Medicine | Immunology | SIMPONI / SIMPONI ARIA | ||
Sales by segment of business | ||
Sales to customers | $ 554 | 537 |
Percent Change (as a percent) | 3% | |
Innovative Medicine | Immunology | SIMPONI / SIMPONI ARIA | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 254 | 271 |
Percent Change (as a percent) | (6.20%) | |
Innovative Medicine | Immunology | SIMPONI / SIMPONI ARIA | International | ||
Sales by segment of business | ||
Sales to customers | $ 299 | 266 |
Percent Change (as a percent) | 12.40% | |
Innovative Medicine | Immunology | STELARA | ||
Sales by segment of business | ||
Sales to customers | $ 2,451 | 2,444 |
Percent Change (as a percent) | 0.30% | |
Innovative Medicine | Immunology | STELARA | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 1,396 | 1,451 |
Percent Change (as a percent) | (3.80%) | |
Innovative Medicine | Immunology | STELARA | International | ||
Sales by segment of business | ||
Sales to customers | $ 1,055 | 993 |
Percent Change (as a percent) | 6.20% | |
Innovative Medicine | Immunology | TREMFYA | ||
Sales by segment of business | ||
Sales to customers | $ 808 | 640 |
Percent Change (as a percent) | 26.30% | |
Innovative Medicine | Immunology | TREMFYA | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 509 | 406 |
Percent Change (as a percent) | 25.40% | |
Innovative Medicine | Immunology | TREMFYA | International | ||
Sales by segment of business | ||
Sales to customers | $ 299 | 234 |
Percent Change (as a percent) | 27.90% | |
Innovative Medicine | Immunology | OTHER IMMUNOLOGY | ||
Sales by segment of business | ||
Sales to customers | $ 0 | 3 |
Innovative Medicine | Immunology | OTHER IMMUNOLOGY | U.S. | ||
Sales by segment of business | ||
Sales to customers | 0 | 3 |
Innovative Medicine | Immunology | OTHER IMMUNOLOGY | International | ||
Sales by segment of business | ||
Sales to customers | $ 0 | 0 |
Percent Change (as a percent) | 0% | |
Innovative Medicine | Infectious Diseases | ||
Sales by segment of business | ||
Sales to customers | $ 821 | 1,586 |
Percent Change (as a percent) | (48.30%) | |
Innovative Medicine | Infectious Diseases | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 324 | 392 |
Percent Change (as a percent) | (17.40%) | |
Innovative Medicine | Infectious Diseases | International | ||
Sales by segment of business | ||
Sales to customers | $ 497 | 1,193 |
Percent Change (as a percent) | (58.40%) | |
Innovative Medicine | Infectious Diseases | COVID-19 | ||
Sales by segment of business | ||
Sales to customers | $ 25 | 747 |
Percent Change (as a percent) | (96.60%) | |
Innovative Medicine | Infectious Diseases | COVID-19 | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 0 | $ 0 |
Percent Change (as a percent) | 0% | |
Innovative Medicine | Infectious Diseases | COVID-19 | International | ||
Sales by segment of business | ||
Sales to customers | $ 25 | $ 747 |
Percent Change (as a percent) | (96.60%) | |
Innovative Medicine | Infectious Diseases | EDURANT / rilpivirine | ||
Sales by segment of business | ||
Sales to customers | $ 323 | 280 |
Percent Change (as a percent) | 15.70% | |
Innovative Medicine | Infectious Diseases | EDURANT / rilpivirine | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 8 | 9 |
Percent Change (as a percent) | (10.90%) | |
Innovative Medicine | Infectious Diseases | EDURANT / rilpivirine | International | ||
Sales by segment of business | ||
Sales to customers | $ 315 | 271 |
Percent Change (as a percent) | 16.60% | |
Innovative Medicine | Infectious Diseases | PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA | ||
Sales by segment of business | ||
Sales to customers | $ 418 | 477 |
Percent Change (as a percent) | (12.30%) | |
Innovative Medicine | Infectious Diseases | PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 314 | 378 |
Percent Change (as a percent) | (16.90%) | |
Innovative Medicine | Infectious Diseases | PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA | International | ||
Sales by segment of business | ||
Sales to customers | $ 104 | 99 |
Percent Change (as a percent) | 5.50% | |
Innovative Medicine | Infectious Diseases | OTHER INFECTIOUS DISEASES( | ||
Sales by segment of business | ||
Sales to customers | $ 53 | 82 |
Percent Change (as a percent) | (35.10%) | |
Innovative Medicine | Infectious Diseases | OTHER INFECTIOUS DISEASES( | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 2 | 5 |
Percent Change (as a percent) | (68.80%) | |
Innovative Medicine | Infectious Diseases | OTHER INFECTIOUS DISEASES( | International | ||
Sales by segment of business | ||
Sales to customers | $ 52 | 77 |
Percent Change (as a percent) | (32.80%) | |
Innovative Medicine | Neuroscience | ||
Sales by segment of business | ||
Sales to customers | $ 1,803 | 1,804 |
Percent Change (as a percent) | 0% | |
Innovative Medicine | Neuroscience | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 1,054 | 978 |
Percent Change (as a percent) | 7.80% | |
Innovative Medicine | Neuroscience | International | ||
Sales by segment of business | ||
Sales to customers | $ 749 | 826 |
Percent Change (as a percent) | (9.30%) | |
Innovative Medicine | Neuroscience | CONCERTA / methylphenidate | ||
Sales by segment of business | ||
Sales to customers | $ 177 | 206 |
Percent Change (as a percent) | (14.10%) | |
Innovative Medicine | Neuroscience | CONCERTA / methylphenidate | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 41 | 70 |
Percent Change (as a percent) | (41.20%) | |
Innovative Medicine | Neuroscience | CONCERTA / methylphenidate | International | ||
Sales by segment of business | ||
Sales to customers | $ 136 | 136 |
Percent Change (as a percent) | (0.10%) | |
Innovative Medicine | Neuroscience | INVEGA SUSTENNA / XEPLION / INVEGA TRINZA / TREVICTA | ||
Sales by segment of business | ||
Sales to customers | $ 1,056 | 1,044 |
Percent Change (as a percent) | 1.20% | |
Innovative Medicine | Neuroscience | INVEGA SUSTENNA / XEPLION / INVEGA TRINZA / TREVICTA | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 765 | 713 |
Percent Change (as a percent) | 7.20% | |
Innovative Medicine | Neuroscience | INVEGA SUSTENNA / XEPLION / INVEGA TRINZA / TREVICTA | International | ||
Sales by segment of business | ||
Sales to customers | $ 292 | 331 |
Percent Change (as a percent) | (11.80%) | |
Innovative Medicine | Neuroscience | SPRAVATO | ||
Sales by segment of business | ||
Sales to customers | $ 225 | 131 |
Percent Change (as a percent) | 72.20% | |
Innovative Medicine | Neuroscience | SPRAVATO | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 191 | 111 |
Percent Change (as a percent) | 71.50% | |
Innovative Medicine | Neuroscience | SPRAVATO | International | ||
Sales by segment of business | ||
Sales to customers | $ 34 | 20 |
Percent Change (as a percent) | 76.10% | |
Innovative Medicine | Neuroscience | OTHER NEUROSCIENCE | ||
Sales by segment of business | ||
Sales to customers | $ 345 | 423 |
Percent Change (as a percent) | (18.50%) | |
Innovative Medicine | Neuroscience | OTHER NEUROSCIENCE | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 58 | 84 |
Percent Change (as a percent) | (31.10%) | |
Innovative Medicine | Neuroscience | OTHER NEUROSCIENCE | International | ||
Sales by segment of business | ||
Sales to customers | $ 287 | 339 |
Percent Change (as a percent) | (15.50%) | |
Innovative Medicine | Oncology | ||
Sales by segment of business | ||
Sales to customers | $ 4,814 | 4,112 |
Percent Change (as a percent) | 17.10% | |
Innovative Medicine | Oncology | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 2,383 | 1,889 |
Percent Change (as a percent) | 26.20% | |
Innovative Medicine | Oncology | International | ||
Sales by segment of business | ||
Sales to customers | $ 2,430 | 2,223 |
Percent Change (as a percent) | 9.30% | |
Innovative Medicine | Oncology | CARVYKTI | ||
Sales by segment of business | ||
Sales to customers | $ 157 | 72 |
Innovative Medicine | Oncology | CARVYKTI | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 140 | 70 |
Percent Change (as a percent) | 99.80% | |
Innovative Medicine | Oncology | CARVYKTI | International | ||
Sales by segment of business | ||
Sales to customers | $ 16 | 2 |
Innovative Medicine | Oncology | DARZALEX | ||
Sales by segment of business | ||
Sales to customers | $ 2,692 | 2,264 |
Percent Change (as a percent) | 18.90% | |
Innovative Medicine | Oncology | DARZALEX | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 1,464 | 1,191 |
Percent Change (as a percent) | 22.90% | |
Innovative Medicine | Oncology | DARZALEX | International | ||
Sales by segment of business | ||
Sales to customers | $ 1,228 | 1,072 |
Percent Change (as a percent) | 14.50% | |
Innovative Medicine | Oncology | ERLEADA | ||
Sales by segment of business | ||
Sales to customers | $ 689 | 542 |
Percent Change (as a percent) | 27% | |
Innovative Medicine | Oncology | ERLEADA | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 285 | 249 |
Percent Change (as a percent) | 14.10% | |
Innovative Medicine | Oncology | ERLEADA | International | ||
Sales by segment of business | ||
Sales to customers | $ 404 | 293 |
Percent Change (as a percent) | 38% | |
Innovative Medicine | Oncology | IMBRUVICA | ||
Sales by segment of business | ||
Sales to customers | $ 784 | 827 |
Percent Change (as a percent) | (5.20%) | |
Innovative Medicine | Oncology | IMBRUVICA | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 265 | 270 |
Percent Change (as a percent) | (1.50%) | |
Innovative Medicine | Oncology | IMBRUVICA | International | ||
Sales by segment of business | ||
Sales to customers | $ 518 | 557 |
Percent Change (as a percent) | (7.00%) | |
Innovative Medicine | Oncology | ZYTIGA / abiraterone acetate | ||
Sales by segment of business | ||
Sales to customers | $ 181 | 245 |
Percent Change (as a percent) | (25.90%) | |
Innovative Medicine | Oncology | ZYTIGA / abiraterone acetate | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 9 | 16 |
Percent Change (as a percent) | (41.30%) | |
Innovative Medicine | Oncology | ZYTIGA / abiraterone acetate | International | ||
Sales by segment of business | ||
Sales to customers | $ 172 | 229 |
Percent Change (as a percent) | (24.80%) | |
Innovative Medicine | Oncology | OTHER ONCOLOGY | ||
Sales by segment of business | ||
Sales to customers | $ 178 | 99 |
Percent Change (as a percent) | 80.20% | |
Innovative Medicine | Oncology | OTHER ONCOLOGY | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 119 | 35 |
Innovative Medicine | Oncology | OTHER ONCOLOGY | International | ||
Sales by segment of business | ||
Sales to customers | $ 60 | 64 |
Percent Change (as a percent) | (6.10%) | |
Innovative Medicine | Oncology | Tecvayli | ||
Sales by segment of business | ||
Sales to customers | $ 133 | 63 |
Innovative Medicine | Oncology | Tecvayli | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 101 | 57 |
Percent Change (as a percent) | 76.70% | |
Innovative Medicine | Oncology | Tecvayli | International | ||
Sales by segment of business | ||
Sales to customers | $ 33 | 6 |
Innovative Medicine | Pulmonary Hypertension | ||
Sales by segment of business | ||
Sales to customers | $ 1,049 | 872 |
Percent Change (as a percent) | 20.20% | |
Innovative Medicine | Pulmonary Hypertension | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 766 | 600 |
Percent Change (as a percent) | 27.50% | |
Innovative Medicine | Pulmonary Hypertension | International | ||
Sales by segment of business | ||
Sales to customers | $ 283 | 272 |
Percent Change (as a percent) | 4.10% | |
Innovative Medicine | Pulmonary Hypertension | OPSUMIT | ||
Sales by segment of business | ||
Sales to customers | $ 524 | 440 |
Percent Change (as a percent) | 19.10% | |
Innovative Medicine | Pulmonary Hypertension | OPSUMIT | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 356 | 273 |
Percent Change (as a percent) | 30.40% | |
Innovative Medicine | Pulmonary Hypertension | OPSUMIT | International | ||
Sales by segment of business | ||
Sales to customers | $ 169 | 167 |
Percent Change (as a percent) | 0.80% | |
Innovative Medicine | Pulmonary Hypertension | UPTRAVI | ||
Sales by segment of business | ||
Sales to customers | $ 468 | 362 |
Percent Change (as a percent) | 29.20% | |
Innovative Medicine | Pulmonary Hypertension | UPTRAVI | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 392 | 304 |
Percent Change (as a percent) | 29% | |
Innovative Medicine | Pulmonary Hypertension | UPTRAVI | International | ||
Sales by segment of business | ||
Sales to customers | $ 76 | 58 |
Percent Change (as a percent) | 30.70% | |
Innovative Medicine | Pulmonary Hypertension | Other | ||
Sales by segment of business | ||
Sales to customers | $ 56 | 70 |
Percent Change (as a percent) | (19.50%) | |
Innovative Medicine | Pulmonary Hypertension | Other | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 18 | 23 |
Percent Change (as a percent) | (24.60%) | |
Innovative Medicine | Pulmonary Hypertension | Other | International | ||
Sales by segment of business | ||
Sales to customers | $ 39 | 47 |
Percent Change (as a percent) | (16.90%) | |
Innovative Medicine | Cardiovascular / Metabolism / Other | ||
Sales by segment of business | ||
Sales to customers | $ 829 | 927 |
Percent Change (as a percent) | (10.60%) | |
Innovative Medicine | Cardiovascular / Metabolism / Other | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 631 | 715 |
Percent Change (as a percent) | (11.70%) | |
Innovative Medicine | Cardiovascular / Metabolism / Other | International | ||
Sales by segment of business | ||
Sales to customers | $ 197 | 212 |
Percent Change (as a percent) | (7.00%) | |
Innovative Medicine | Cardiovascular / Metabolism / Other | Other | ||
Sales by segment of business | ||
Sales to customers | $ 311 | 349 |
Percent Change (as a percent) | (11.00%) | |
Innovative Medicine | Cardiovascular / Metabolism / Other | Other | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 114 | 137 |
Percent Change (as a percent) | (17.10%) | |
Innovative Medicine | Cardiovascular / Metabolism / Other | Other | International | ||
Sales by segment of business | ||
Sales to customers | $ 197 | 212 |
Percent Change (as a percent) | (7.00%) | |
Innovative Medicine | Cardiovascular / Metabolism / Other | XARELTO | ||
Sales by segment of business | ||
Sales to customers | $ 518 | 578 |
Percent Change (as a percent) | (10.40%) | |
Innovative Medicine | Cardiovascular / Metabolism / Other | XARELTO | U.S. | ||
Sales by segment of business | ||
Sales to customers | $ 518 | 578 |
Percent Change (as a percent) | (10.40%) | |
Innovative Medicine | Cardiovascular / Metabolism / Other | XARELTO | International | ||
Sales by segment of business | ||
Sales to customers | $ 0 | $ 0 |
Percent Change (as a percent) | 0% |
Segments of Business and Geog_5
Segments of Business and Geographic Areas - Operating Profit by Segment of Business (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Apr. 02, 2023 | |
Segment Reporting Information [Line Items] | ||
Worldwide income (loss) before tax | $ 3,714 | $ (1,287) |
Percent Change | ||
Restructuring charges | $ 164 | 130 |
Baby Powder | Talc | ||
Segment Reporting Information [Line Items] | ||
Loss contingency, loss in period | 2,700 | 6,900 |
Innovative Medicine | ||
Segment Reporting Information [Line Items] | ||
Restructuring charges | 100 | 100 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total segment operating income | $ 6,489 | 5,811 |
Percent Change | 11.70% | |
Restructuring charges | $ 171 | |
Operating Segments | Innovative Medicine | ||
Segment Reporting Information [Line Items] | ||
Total segment operating income | $ 4,969 | 4,402 |
Percent Change | 12.90% | |
Amortization | $ 700 | 700 |
Restructuring charges | 144 | |
Other cost of operating revenue | 400 | |
Operating Segments | MedTech | ||
Segment Reporting Information [Line Items] | ||
Total segment operating income | $ 1,520 | 1,409 |
Percent Change | 7.90% | |
Amortization | $ 400 | 400 |
Restructuring charges | 27 | |
Corporate, Non-Segment | ||
Segment Reporting Information [Line Items] | ||
Total segment operating income | $ 2,775 | $ 7,098 |
Segments of Business and Geog_6
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 | |
Mar. 31, 2024 | Apr. 02, 2023 | |
Sales by geographic area | ||
Sales | $ 21,383 | $ 20,894 |
Percent Change | 2.30% | |
United States | ||
Sales by geographic area | ||
Sales | $ 11,620 | 10,782 |
Percent Change | 7.80% | |
Europe | ||
Sales by geographic area | ||
Sales | $ 5,163 | 5,590 |
Percent Change | (7.60%) | |
Western Hemisphere, excluding U.S. | ||
Sales by geographic area | ||
Sales | $ 1,194 | 1,076 |
Percent Change | 11% | |
Asia-Pacific, Africa | ||
Sales by geographic area | ||
Sales | $ 3,406 | $ 3,446 |
Percent Change | (1.10%) |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | |
Apr. 26, 2024 | Mar. 31, 2024 | Apr. 02, 2023 | |
Business Acquisition [Line Items] | |||
Payments to acquire businesses | $ 1,811 | $ 0 | |
Goodwill, related to acquisitions | 290 | ||
Proceeds from sale of business | $ 200 | ||
Shockwave Medical, Inc. | Scenario, Forecast | |||
Business Acquisition [Line Items] | |||
Share price (in dollars per share) | $ 335 | ||
Price of acquisition, expected | $ 13,100 | ||
Ambrx | |||
Business Acquisition [Line Items] | |||
Share price (in dollars per share) | $ 28 | ||
Consideration transferred | $ 2,000 | ||
Payments to acquire businesses | 1,800 | ||
Assets acquired | 2,300 | ||
Intangible assets | 1,900 | ||
Goodwill, related to acquisitions | 300 | ||
Liabilities assumed | 500 | ||
Deferred tax liabilities | $ 400 | ||
Discount rate | 17% | ||
Ambrx | Minimum | |||
Business Acquisition [Line Items] | |||
Probability of success factor | 40% | ||
Ambrx | Maximum | |||
Business Acquisition [Line Items] | |||
Probability of success factor | 70% |
Legal Proceedings (Details)
Legal Proceedings (Details) $ in Millions | 1 Months Ended | 3 Months Ended | ||||||||||
May 01, 2024 USD ($) | Oct. 31, 2021 entity | Jun. 30, 2021 USD ($) | Jun. 30, 2020 USD ($) | Jan. 31, 2020 USD ($) | Oct. 31, 2019 USD ($) | Jul. 31, 2018 USD ($) | Mar. 31, 2024 USD ($) claim claimant | Dec. 29, 2024 | Jan. 02, 2022 USD ($) | Sep. 30, 2021 cases | May 31, 2021 cases claimant | |
Legal Proceeding (Textuals) | ||||||||||||
Number of new entities created | entity | 3 | |||||||||||
Judicial Ruling | ||||||||||||
Legal Proceeding (Textuals) | ||||||||||||
Damages awarded | $ 6.8 | $ 8,000 | ||||||||||
Opioid | ||||||||||||
Legal Proceeding (Textuals) | ||||||||||||
Loss contingency accrual | $ 5,000 | |||||||||||
Number of pending claims | claim | 35 | |||||||||||
Product liability contingency, number of claimants | claimant | 3,500 | |||||||||||
Loss contingency accrual, payment percentage | 60% | |||||||||||
Pending claims, number, remaining | claim | 435 | |||||||||||
Loss contingency pending claims, number, additional | claim | 4 | |||||||||||
Opioid | Scenario, Forecast | ||||||||||||
Legal Proceeding (Textuals) | ||||||||||||
Loss contingency accrual, payment percentage | 75% | |||||||||||
Physiomesh | ||||||||||||
Legal Proceeding (Textuals) | ||||||||||||
Product liability contingency, number of claimants | claimant | 230 | |||||||||||
Physiomesh | Pending Litigation | ||||||||||||
Legal Proceeding (Textuals) | ||||||||||||
Number of pending claims | cases | 3,600 | |||||||||||
Product liability contingency, number of claimants | claimant | 4,300 | |||||||||||
Number of claims within settlement agreement | cases | 3,729 | |||||||||||
Ingham v. Johnson & Johnson | ||||||||||||
Legal Proceeding (Textuals) | ||||||||||||
Damages awarded | $ 2,100 | $ 4,700 | ||||||||||
Damages paid | $ 2,500 | |||||||||||
DePuy ASR U.S. | Settled Litigation | ||||||||||||
Legal Proceeding (Textuals) | ||||||||||||
Number of patients in settlement | claimant | 10,000 | |||||||||||
Talc | ||||||||||||
Legal Proceeding (Textuals) | ||||||||||||
Incremental charges | $ 2,700 | |||||||||||
Loss contingency accrual | 11,000 | |||||||||||
Loss contingency accrual, nominal value | $ 13,700 | |||||||||||
Talc | Subsequent Event | ||||||||||||
Legal Proceeding (Textuals) | ||||||||||||
Litigation contingency | $ 6,475 | |||||||||||
Payment period | 25 years | |||||||||||
Damages sought, nominal value | $ 8,400 | |||||||||||
Bankruptcy loss contingency, discount rate | 4.40% | |||||||||||
Total claims against company, percent | 99.75% | |||||||||||
Mesothelioma and State Claims | Subsequent Event | ||||||||||||
Legal Proceeding (Textuals) | ||||||||||||
Claims settled, percent | 95% |
Legal Proceedings - Product Lia
Legal Proceedings - Product Liability (Details) | Mar. 31, 2024 claimant |
Talc | |
Loss Contingencies [Line Items] | |
Product liability contingency, number of claimants | 61,490 |
ASR | |
Loss Contingencies [Line Items] | |
Product liability contingency, number of claimants | 160 |
Pinnacle Acetabular Cup System | |
Loss Contingencies [Line Items] | |
Product liability contingency, number of claimants | 920 |
Pelvic Meshes | |
Loss Contingencies [Line Items] | |
Product liability contingency, number of claimants | 6,440 |
Physiomesh | |
Loss Contingencies [Line Items] | |
Product liability contingency, number of claimants | 230 |
Risperdal | |
Loss Contingencies [Line Items] | |
Product liability contingency, number of claimants | 50 |
Elmiron | |
Loss Contingencies [Line Items] | |
Product liability contingency, number of claimants | 2,150 |
Kenvue Separation - Net Earning
Kenvue Separation - Net Earnings from Discontinued Operation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Apr. 02, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | ||
Sales to customers | $ 3,852 | |
Cost of products sold | $ 1,708 | |
Gross profit | 2,144 | |
Selling, marketing and administrative expenses | 1,232 | |
Research and development expense | 108 | |
Interest Income | (37) | |
Interest expense, net of portion capitalized | 3 | |
Other (income) expense, net | 288 | |
Earnings from Discontinued Operations Before Provision for Taxes on Income | 550 | |
Provision for taxes on income | 127 | |
Net earnings from Discontinued Operations | $ 423 |
Kenvue Separation - Depreciatio
Kenvue Separation - Depreciation and Amortization of Discontinued Operation (Details) $ in Millions | 3 Months Ended |
Apr. 02, 2023 USD ($) | |
Discontinued Operations and Disposal Groups [Abstract] | |
Depreciation and Amortization | $ 153 |
Capital expenditures | $ 47 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Apr. 02, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 164 | $ 130 |
R&D Restructuring Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 144 | $ 100 |
Restructuring charges recorded to date | 600 | |
Orthopedics Restructuring Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 27 | |
Restructuring charges recorded to date | 300 | |
Orthopedics Restructuring Plan | Minimum | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring estimated cost | 700 | |
Orthopedics Restructuring Plan | Maximum | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring estimated cost | $ 800 |
Restructuring - Schedule of Res
Restructuring - Schedule of Restructuring Reserve (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Apr. 02, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 164 | $ 130 |
Operating Segments | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 171 | |
Innovative Medicine | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 100 | $ 100 |
Innovative Medicine | Operating Segments | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 144 | |
MEDTECH | Operating Segments | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 27 | |
MEDTECH | Restructuring Charges | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 20 | |
MEDTECH | Costs of Goods and Services Sold | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 7 |