Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 19, 2024 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 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 | 2,407,243,667 | |
Entity Central Index Key | 0000200406 | |
Current Fiscal Year End Date | --12-29 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Common Stock, Par Value $1.00 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock, Par Value $1.00 | |
Trading Symbol | JNJ | |
Security Exchange Name | NYSE | |
1.150% Notes Due November 2028 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 5.50% Notes Due November 2024 | |
Trading Symbol | JNJ24BP | |
Security Exchange Name | NYSE | |
1.150% Notes Due November 2028 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.150% Notes Due November 2028 | |
Trading Symbol | JNJ28 | |
Security Exchange Name | NYSE | |
3.20% Notes Due November 2032 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 3.20% Notes Due November 2032 | |
Trading Symbol | JNJ32 | |
Security Exchange Name | NYSE | |
1.650% Notes Due May 2035 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.650% Notes Due May 2035 | |
Trading Symbol | JNJ35 | |
Security Exchange Name | NYSE | |
3.350% Notes Due November 2036 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 3.350% Notes Due November 2036 | |
Trading Symbol | JNJ36A | |
Security Exchange Name | NYSE | |
3.550% Notes Due November 2044 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 3.550% Notes Due November 2044 | |
Trading Symbol | JNJ44 | |
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents (Note 4) | $ 24,878 | $ 21,859 |
Marketable securities | 597 | 1,068 |
Accounts receivable, trade, less allowances $161 (2023, $166) | 15,794 | 14,873 |
Inventories (Note 2) | 12,169 | 11,181 |
Prepaid expenses and other | 4,379 | 4,514 |
Total current assets | 57,817 | 53,495 |
Property, plant and equipment at cost | 48,035 | 47,776 |
Less: accumulated depreciation | (28,287) | (27,878) |
Property, plant and equipment, net | 19,748 | 19,898 |
Intangible assets, net (Note 3) | 39,725 | 34,175 |
Goodwill (Note 3) | 44,250 | 36,558 |
Deferred taxes on income (Note 5) | 9,004 | 9,279 |
Other assets | 10,544 | 14,153 |
Total assets | 181,088 | 167,558 |
Current liabilities: | ||
Loans and notes payable | 9,855 | 3,451 |
Accounts payable | 8,848 | 9,632 |
Accrued liabilities | 10,539 | 10,212 |
Accrued rebates, returns and promotions | 17,539 | 16,001 |
Accrued compensation and employee related obligations | 2,843 | 3,993 |
Accrued taxes on income (Note 5) | 4,309 | 2,993 |
Total current liabilities | 53,933 | 46,282 |
Long-term debt (Note 4) | 31,636 | 25,881 |
Deferred taxes on income (Note 5) | 2,635 | 3,193 |
Employee related obligations (Note 6) | 6,919 | 7,149 |
Long-term taxes payable (Note 5) | 341 | 2,881 |
Other liabilities | 14,086 | 13,398 |
Total liabilities | 109,550 | 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) | (11,253) | (12,527) |
Retained earnings and Additional paid-in capital | 155,360 | 153,843 |
Less: common stock held in treasury, at cost (712,997,000 and 712,765,000 shares) | 75,689 | 75,662 |
Total shareholders’ equity | 71,538 | 68,774 |
Total shareholders’ equity | 71,538 | 68,774 |
Total liabilities and shareholders’ equity | $ 181,088 | $ 167,558 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets: | ||
Allowances for doubtful accounts | $ 161 | $ 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) | 712,997,000 | 712,765,000 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | |
Income Statement [Abstract] | ||||
Sales to customers (Note 9) | $ 22,447 | $ 21,519 | $ 43,830 | $ 42,413 |
Sales to customers percent to sales | 100% | 100% | 100% | 100% |
Cost of products sold | $ 6,869 | $ 6,462 | $ 13,380 | $ 13,149 |
Cost of products sold percent to sales | 30.60% | 30% | 30.50% | 31% |
Gross profit | $ 15,578 | $ 15,057 | $ 30,450 | $ 29,264 |
Gross Profit Percent To Sales | 69.40% | 70% | 69.50% | 69% |
Selling, marketing and administrative expenses | $ 5,681 | $ 5,396 | $ 10,938 | $ 10,302 |
Selling marketing and administrative expenses percent to sales | 25.30% | 25.10% | 25% | 24.30% |
Research and development expense | $ 3,440 | $ 3,703 | $ 6,982 | $ 7,158 |
Research and development expense percent to sales | 15.30% | 17.20% | 16% | 16.90% |
In-process research and development impairments | $ 194 | $ 0 | $ 194 | $ 49 |
In-process research and development percent to sales | 0.90% | 0% | 0.40% | 0.10% |
Interest income | $ (395) | $ (326) | $ (759) | $ (524) |
Interest income percent to sales | (1.80%) | (1.50%) | (1.80%) | (1.20%) |
Interest expense, net of portion capitalized | $ 270 | $ 217 | $ 425 | $ 429 |
Interest expense, net of portion capitalized percent to sales | 1.20% | 1% | 1% | 1% |
Other (income) expense, net | $ 653 | $ (384) | $ 3,057 | $ 6,556 |
Other (income) expense, net percent to sales | 2.90% | (1.80%) | 7% | 15.50% |
Restructuring (Note 12) | $ (13) | $ 145 | $ 151 | $ 275 |
Restructuring charge percent to sales | 0% | 0.70% | 0.30% | 0.60% |
Earnings before provision for taxes on income | $ 5,748 | $ 6,306 | $ 9,462 | $ 5,019 |
Earnings before provision for taxes on income percent to sales | 25.60% | 29.30% | 21.60% | 11.80% |
Provision for taxes on income (Note 5) | $ 1,062 | $ 930 | $ 1,521 | $ 134 |
Provision for taxes on income percent to sales | 4.70% | 4.30% | 3.50% | 0.30% |
Net earnings from continuing operations | $ 4,686 | $ 5,376 | $ 7,941 | $ 4,885 |
Net earnings from continuing operations percent of sales | 20.90% | 25% | 18.10% | 11.50% |
Net earnings (loss) from discontinued operations, net of tax (Note 13) | $ 0 | $ (232) | $ 0 | $ 191 |
Net earnings | $ 4,686 | $ 5,144 | $ 7,941 | $ 5,076 |
NET EARNINGS PER SHARE | ||||
Continuing operations - basic (in dollars per share) | $ 1.95 | $ 2.07 | $ 3.30 | $ 1.88 |
Discontinued operations - basic (in dollars per share) | 0 | (0.09) | 0 | 0.07 |
Total net earnings per share - basic (in dollars per share) | 1.95 | 1.98 | 3.30 | 1.95 |
Continuing operations - diluted (in dollars per share) | 1.93 | 2.05 | 3.27 | 1.86 |
Discontinued operations - diluted (in dollars per share) | 0 | (0.09) | 0 | 0.07 |
Total net earnings per share - diluted (in dollars per share) | $ 1.93 | $ 1.96 | $ 3.27 | $ 1.93 |
Avg. shares outstanding | ||||
Basic (shares) | 2,406.8 | 2,598.4 | 2,407.5 | 2,601.9 |
Diluted (shares) | 2,422 | 2,625.7 | 2,428.5 | 2,630.7 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 4,686 | $ 5,144 | $ 7,941 | $ 5,076 |
Other comprehensive income (loss), net of tax | ||||
Foreign currency translation | (389) | (715) | 1,734 | (896) |
Securities: | ||||
Unrealized holding gain (loss) arising during period | (1) | 4 | 1 | 21 |
Reclassifications to earnings | 0 | 0 | 0 | 0 |
Net change | (1) | 4 | 1 | 21 |
Employee benefit plans: | ||||
Prior service cost amortization during period | (34) | (36) | (272) | (71) |
Gain (loss) amortization during period | 43 | (34) | 333 | (67) |
Net change | 9 | (70) | 61 | (138) |
Derivatives & hedges: | ||||
Unrealized gain (loss) arising during period | 75 | (137) | (92) | 433 |
Reclassifications to earnings | (179) | (139) | (430) | (136) |
Net change | (104) | (276) | (522) | 297 |
Other comprehensive income (loss) | (485) | (1,057) | 1,274 | (716) |
Comprehensive income | $ 4,201 | $ 4,087 | $ 9,215 | $ 4,360 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation adjustment income (loss) | $ 65 | $ (32) | $ 684 | $ (266) |
Securities income (loss) | 1 | 1 | 6 | |
Employee benefit plans income (loss) | (1) | 21 | 41 | 43 |
Derivatives & hedges income (loss) | $ (28) | $ (74) | $ (139) | $ 80 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Retained Earnings and Additional Paid-in Capital | Accumulated Other Comprehensive Income (AOCI) | Common Stock Issued Amount | Treasury Stock Amount | Non-Controlling interest (NCI) |
Beginning balance at Jan. 01, 2023 | $ 76,804 | $ 128,345 | $ (12,967) | $ 3,120 | $ (41,694) | $ 0 |
Net earnings | 5,076 | 5,076 | ||||
Cash dividends paid | (6,034) | (6,034) | ||||
Employee compensation and stock option plans | 944 | (476) | 1,420 | |||
Repurchase of common stock | (3,918) | (3,918) | ||||
Other | (25) | (25) | ||||
Kenvue IPO | 4,278 | 2,470 | 548 | 1,260 | ||
Other comprehensive income (loss), net of tax | (716) | (716) | ||||
Ending balance at Jul. 02, 2023 | 76,409 | 129,381 | (13,135) | 3,120 | (44,217) | 1,260 |
Beginning balance at Apr. 02, 2023 | 70,869 | 124,558 | (12,626) | 3,120 | (44,183) | 0 |
Net earnings | 5,144 | 5,144 | ||||
Cash dividends paid | (3,092) | (3,092) | ||||
Employee compensation and stock option plans | 649 | 301 | 348 | |||
Repurchase of common stock | (381) | (381) | ||||
Other | (1) | 0 | (1) | |||
Kenvue IPO | 4,278 | 2,470 | 548 | 1,260 | ||
Other comprehensive income (loss), net of tax | (1,057) | (1,057) | ||||
Ending balance at Jul. 02, 2023 | 76,409 | 129,381 | (13,135) | 3,120 | (44,217) | $ 1,260 |
Beginning balance at Dec. 31, 2023 | 68,774 | 153,843 | (12,527) | 3,120 | (75,662) | |
Net earnings | 7,941 | 7,941 | ||||
Cash dividends paid | (5,854) | (5,854) | ||||
Employee compensation and stock option plans | 1,015 | (570) | 1,585 | |||
Repurchase of common stock | (1,611) | (1,611) | ||||
Other | (1) | (1) | ||||
Other comprehensive income (loss), net of tax | 1,274 | 1,274 | ||||
Ending balance at Jun. 30, 2024 | 71,538 | 155,360 | (11,253) | 3,120 | (75,689) | |
Beginning balance at Mar. 31, 2024 | 70,020 | 153,378 | (10,768) | 3,120 | (75,710) | |
Net earnings | 4,686 | 4,686 | ||||
Cash dividends paid | (2,985) | (2,985) | ||||
Employee compensation and stock option plans | 438 | 281 | 157 | |||
Repurchase of common stock | (136) | (136) | ||||
Other comprehensive income (loss), net of tax | (485) | (485) | ||||
Ending balance at Jun. 30, 2024 | $ 71,538 | $ 155,360 | $ (11,253) | $ 3,120 | $ (75,689) |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends paid (in dollars per share) | $ 1.24 | $ 1.19 | $ 2.43 | $ 2.32 |
Noncontrolling interest, ownership percentage | 10.40% | |||
Net earnings attributable to noncontrolling interest | $ 37 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jul. 02, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net earnings | $ 7,941 | $ 5,076 |
Adjustments to reconcile net earnings to cash flows from operating activities: | ||
Depreciation and amortization of property and intangibles | 3,597 | 3,814 |
Stock based compensation | 643 | 688 |
Asset write-downs | 379 | 388 |
Net gain on sale of assets/businesses | (223) | (47) |
Deferred tax provision | (2,257) | (2,342) |
Credit losses and accounts receivable allowances | 0 | 0 |
Changes in assets and liabilities, net of effects from acquisitions and divestitures: | ||
Increase in accounts receivable | (1,163) | (599) |
Increase in inventories | (739) | (741) |
Increase/(Decrease) in accounts payable and accrued liabilities | 449 | (1,061) |
Decrease/(Increase) in other current and non-current assets | 3,731 | (1,144) |
(Decrease)/Increase in other current and non-current liabilities | (3,068) | 3,407 |
Net cash flows from operating activities | 9,290 | 7,439 |
Cash flows from investing activities | ||
Additions to property, plant and equipment | (1,783) | (1,987) |
Proceeds from the disposal of assets/businesses, net (Note 10) | 573 | 116 |
Acquisitions, net of cash acquired (Note 10) | (14,807) | 0 |
Purchases of investments | (1,184) | (9,688) |
Sales of investments | 1,706 | 11,877 |
Credit support agreements activity, net | 1,430 | (798) |
Other (including capitalized licenses and milestones) | (86) | 19 |
Net cash used by investing activities | (14,151) | (461) |
Cash flows from financing activities | ||
Dividends to shareholders | (5,854) | (6,034) |
Repurchase of common stock | (1,611) | (3,918) |
Proceeds from short-term debt | 13,976 | 12,221 |
Repayment of short-term debt | (3,915) | (13,611) |
Proceeds from long-term debt, net of issuance costs | 6,659 | 7,674 |
Repayment of long-term debt | (803) | (501) |
Proceeds from the exercise of stock options/employee withholding tax on stock awards, net | 290 | 254 |
Credit support agreements activity, net | 281 | (126) |
Settlement of convertible debt acquired from Shockwave | (970) | 0 |
Proceeds from Kenvue initial public offering | 0 | 4,241 |
Other | 37 | (53) |
Net cash flows from financing activities | 8,090 | 147 |
Effect of exchange rate changes on cash and cash equivalents | (210) | (69) |
Increase in cash and cash equivalents | 3,019 | 7,056 |
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 | 24,878 | 19,958 |
Cash and cash equivalents from discontinued operations, end of period | 0 | 1,225 |
Cash and cash equivalents, end of period | 24,878 | 21,183 |
Acquisitions (Note 10) | ||
Fair value of assets acquired | 15,748 | 0 |
Fair value of liabilities assumed | (1,629) | 0 |
Net cash paid for acquisitions | $ 14,119 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 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 six months in 2024. Recently issued accounting standards Not adopted as of June 30, 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. While this accounting standard will increase disclosures, it will not have a material impact on the Company’s Consolidated Financial Statement results. 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. While this accounting standard will increase disclosures, it will not have a material impact on the Company’s Consolidated Financial Statement results. There were no new material accounting standards issued in the fiscal second 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 | 6 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories (Dollars in Millions) June 30, 2024 December 31, 2023 Raw materials and supplies $2,407 2,355 Goods in process 2,556 1,952 Finished goods 7,206 6,874 Total inventories $12,169 11,181 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 6 Months Ended |
Jun. 30, 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) June 30, 2024 December 31, 2023 Intangible assets with definite lives: Patents and trademarks — gross $43,438 40,417 Less accumulated amortization (24,835) (24,808) Patents and trademarks — net 18,603 15,609 Customer relationships and other intangibles — gross 20,176 20,322 Less accumulated amortization (13,018) (12,685) Customer relationships and other intangibles — net (1) 7,158 7,637 Intangible assets with indefinite lives: Trademarks 1,655 1,714 Purchased in-process research and development 12,309 9,215 Total intangible assets with indefinite lives 13,964 10,929 Total intangible assets — net $39,725 34,175 (1) The majority is comprised of customer relationships Goodwill as of June 30, 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 563 7,494 8,057 Goodwill, related to divestitures — (56) (56) Currency translation/Other (202) (107) (309) Goodwill at June 30, 2024 $10,768 33,482 44,250 The weighted average amortization period for patents and trademarks is approximately 12 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 second quarters ended June 30, 2024 and July 2, 2023, respectively. The amortization expense of amortizable intangible assets included in the cost of products sold was $2.2 billion and $2.2 billion for the fiscal six months ended June 30, 2024 and July 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 $4,500 3,900 3,300 2,700 2,000 See Note 10 to the Consolidated Financial Statements for additional details related to acquisitions and divestitures. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 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 June 30, 2024, the cumulative amount of cash collateral paid by the Company under the CSA amounted to $2.3 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 June 30, 2024, the Company had notional amounts outstanding for forward foreign exchange contracts, cross currency interest rate swaps and interest rate swaps of $44.5 billion, $41.0 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 2044 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 June 30, 2024, the balance of deferred net loss on derivatives included in accumulated other comprehensive income was $899 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 second quarters ended June 30, 2024 and July 2, 2023, net of tax: June 30, 2024 July 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 $— — — (53) — — — — (175) — Derivatives designated as hedging instruments — — — 53 — — — — 175 — 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 — — — 33 — — — — 33 — Amount of gain or (loss) recognized in AOCI — — — 33 — — — — 33 — Gain (Loss) on cash flow hedging relationship: Forward foreign exchange contracts: Amount of gain or (loss) reclassified from AOCI into income (1) 94 8 — 3 (15) 56 (12) — 3 Amount of gain or (loss) recognized in AOCI 2 66 11 — 1 (14) 251 7 — 18 Cross currency interest rate swaps contracts: Amount of gain or (loss) reclassified from AOCI into income — — — 42 — — — — 74 — Amount of gain or (loss) recognized in AOCI $— — — (38) — — — — (432) — The following table is a summary of the activity related to derivatives and hedges for the fiscal six months ended June 30, 2024 and July 2, 2023, net of tax: June 30, 2024 July 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 $— — — (45) — — — — (6) — Derivatives designated as hedging instruments — — — 45 — — — — 6 — 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 — — — 67 — — — — 67 — Amount of gain or (loss) recognized in AOCI — — — 67 — — — — 67 — Gain (Loss) on cash flow hedging relationship: Forward foreign exchange contracts: Amount of gain or (loss) reclassified from AOCI into income — 259 12 — 1 (3) (90) (25) — 5 Amount of gain or (loss) recognized in AOCI (1) 47 33 — 5 10 396 (29) — 4 Cross currency interest rate swaps contracts: Amount of gain or (loss) reclassified from AOCI into income — — — 91 — — — — 182 — Amount of gain or (loss) recognized in AOCI $— — — (243) — — — — (15) — As of June 30, 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) June 30, 2024 December 31, 2023 June 30, 2024 December 31, 2023 Long-term Debt $8,812 8,862 (1,274) (1,216) The following table is the effect of derivatives not designated as hedging instruments for the fiscal second quarters ended 2024 and 2023: Gain/(Loss) Gain/(Loss) (Dollars in Millions) Location of Gain /(Loss) Recognized in Income on Derivative Fiscal Second Quarter Ended Fiscal Six Months Ended Derivatives Not Designated as Hedging Instruments June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 Foreign Exchange Contracts Other (income) expense $20 33 45 2 The following table is the effect of net investment hedges for the fiscal second quarters ended in 2024 and 2023: Gain/(Loss) Recognized In Accumulated OCI Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income Into Income Gain/(Loss) Reclassified From (Dollars in Millions) June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 Debt $46 11 Interest (income) expense — — Cross Currency interest rate swaps $92 (24) Interest (income) expense — — The following table is the effect of net investment hedges for the fiscal six months 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) June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 Debt $130 (66) Interest (income) expense — — Cross Currency interest rate swaps $820 666 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 June 30, 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 (4) (3,999) 470 470 Equity Investments without readily determinable value $696 (15) (8) 673 673 (1) Recorded in Other (income)/expense, net (2) Other includes impact of currency * The December 31, 2023 balance includes the 9.5% remaining stake in Kenvue. A debt to equity exchange was completed in the fiscal second quarter of 2024. On May 15, 2024, the Company issued $3.6 billion aggregate principal amount of commercial paper and received $3.6 billion of net cash proceeds to be used for general corporate purposes. On May 17, 2024, the Company completed a Debt-for-Equity Exchange of its remaining 182,329,550 shares of Kenvue Common Stock for the outstanding Commercial Paper. Upon completion of the Debt-for-Equity Exchange, the Commercial Paper was satisfied and discharged and the Company no longer owns any shares of Kenvue Common Stock. This exchange resulted in a loss of approximately $0.4 billion recorded in Other (income) expense. 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 June 30, 2024 and December 31, 2023 were as follows: June 30, 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 $— 523 — 523 539 Interest rate contracts (2) — 1,392 — 1,392 988 Total — 1,915 — 1,915 1,527 Liabilities: Forward foreign exchange contracts — 512 — 512 624 Interest rate contracts (2) — 3,874 — 3,874 5,338 Total — 4,386 — 4,386 5,962 Derivatives not designated as hedging instruments: Assets: Forward foreign exchange contracts — 27 — 27 64 Liabilities: Forward foreign exchange contracts — 19 — 19 75 Other Investments: Equity investments (3) 470 — — 470 4,473 Debt securities (4) — 6,840 — 6,840 8,874 Other Liabilities Contingent consideration (5) $— — 1,248 1,248 1,092 Gross to Net Derivative Reconciliation June 30, 2024 December 31, 2023 (Dollars in Millions) Total Gross Assets $1,942 1,591 Credit Support Agreement (CSA) (1,911) (1,575) Total Net Asset 31 16 Total Gross Liabilities 4,405 6,037 Credit Support Agreement (CSA) (4,229) (5,604) Total Net Liabilities $176 433 Summarized information about changes in liabilities for contingent consideration for the fiscal second quarters ended June 30, 2024 and July 2, 2023 is as follows: June 30, 2024 July 2, 2023 (Dollars in Millions) Beginning Balance $1,092 1,120 Changes in estimated fair value (6) 44 25 Additions 112 — Payments — (3) Ending Balance $1,248 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 June 30, 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 June 30, 2024 comprised: (Dollars in Millions) Carrying Amount Unrealized Gain Estimated Fair Value Cash & Cash Equivalents Current Marketable Securities Cash $4,247 — 4,247 4,247 — U.S. Gov't securities — — — — — Non-U.S. sovereign securities 150 — 150 150 — U.S. reverse repurchase agreements 8,496 — 8,496 8,496 — Corporate debt securities (1) — — — — — Money market funds 4,883 — 4,883 4,883 — Time deposits (1) 859 — 859 859 — Subtotal 18,635 — 18,635 18,635 — U.S. Gov’t securities 6,585 — 6,585 6,182 403 U.S. Gov’t Agencies 11 — 11 — 11 Other sovereign securities 2 — 2 — 2 Corporate debt securities 242 — 242 61 181 Subtotal available for sale debt (2) $6,840 — 6,840 6,243 597 Total cash, cash equivalents and current marketable securities $25,475 — 25,475 24,878 597 (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 June 30, 2024 are as follows: (Dollars in Millions) Cost Basis Fair Value Due within one year $6,821 6,821 Due after one year through five years 19 19 Due after five years through ten years — — Total debt securities $6,840 6,840 Financial instruments not measured at fair value The following financial liabilities are held at carrying amount on the consolidated balance sheet as of June 30, 2024: (Dollars in Millions) Carrying Amount Estimated Fair Value Financial Liabilities Current Debt $9,855 9,835 Non-Current Debt 0.55% Notes due 2025 973 950 2.46% Notes due 2026 1,998 1,921 2.95% Notes due 2027 902 955 0.95% Notes due 2027 1,430 1,334 2.90% Notes due 2028 1,497 1,418 1.150% Notes due 2028 (750MM Euro 1.0721) 801 744 4.80% Notes due 2029 (1) 1,145 1,161 6.95% Notes due 2029 298 332 1.30% Notes due 2030 1,626 1,445 4.90% Notes due 2031 (1) 1,145 1,161 3.20% Notes due 2032 (700MM Euro 1.0721) (1) 747 750 4.95% Notes due 2033 499 513 4.375% Notes due 2033 854 835 4.95% Notes due 2034 (1) 846 860 1.650% Notes due 2035 (1.5B Euro 1.0721) 1,597 1,384 3.35% Notes due 2036 (800MM Euro 1.0721) (1) 852 853 3.587% Notes due 2036 855 876 5.95% Notes due 2037 994 1,089 3.625% Notes due 2037 1,346 1,310 3.40% Notes due 2038 993 839 5.85% Notes due 2038 697 756 4.50% Notes due 2040 541 521 2.10% Notes due 2040 836 670 4.85% Notes due 2041 297 293 4.50% Notes due 2043 496 470 3.55% Notes due 2044 (1.0B Euro 1.0721) (1) 1,062 1,062 3.73% Notes due 2046 1,978 1,609 3.75% Notes due 2047 816 805 3.50% Notes due 2048 743 579 2.25% Notes due 2050 807 593 5.25% Notes due 2054 (1) 843 854 2.45% Notes due 2060 1,055 707 Other 67 67 Total Non-Current Debt $31,636 29,716 (1) In the fiscal second quarter of 2024, the Company issued senior unsecured notes for a total of $6.7 billion. The net proceeds from this offering were used to fund the Shockwave acquisition which closed on May 31, 2024, and for general corporate purposes. The weighted average effective interest rate on non-current debt is 3.28%. 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 | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income taxes The worldwide effective income tax rates for the fiscal six months of 2024 and 2023 were 16.1% and 2.7%, respectively. The change in the consolidated tax rate as compared to the prior year is primarily due to a charge of $7.0 billion in the fiscal six months of 2023 and a charge of $3.0 billion in the fiscal six months of 2024, both related to talc matters. 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 six months of 2024, the effective tax rate was unfavorably impacted by legislative changes that went into effect for Pillar Two in some of the Company's foreign jurisdictions as well as tax audit expenses incurred in the fiscal second quarter of 2024 related to multi-year transfer pricing agreements with the IRS and certain other foreign jurisdictions. As of June 30, 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 (IRS) 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. The Company currently expects completion of multi-year transfer pricing agreements with the IRS and certain other foreign jurisdictions in the next 12 months. As a result, the Company has classified approximately $0.4 billion of unrecognized tax benefits and associated interest as a current liability on the “Accrued taxes on Income” line of the Consolidated Balance Sheet as of the end of the second fiscal quarter of 2024 in anticipation of final settlement. 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 | 6 Months Ended |
Jun. 30, 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 Second Quarter Ended Fiscal Six Months Ended Retirement Plans Other Benefit Plans Retirement Plans Other Benefit Plans (Dollars in Millions) June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 Service cost $222 215 69 69 446 425 138 137 Interest cost 351 371 52 55 703 723 104 109 Expected return on plan assets (639) (694) (1) (2) (1,281) (1,362) (3) (3) Amortization of prior service cost/(credit) (46) (46) (1) (1) (92) (92) (1) (1) Recognized actuarial (gains)/losses 44 (50) 13 7 87 (100) 26 13 Curtailments and settlements (8) — — — (8) — — — Net periodic benefit cost/(credit) $(76) (204) 132 128 (145) (406) 264 255 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 second quarter and fiscal six months 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 six months ended June 30, 2024, the Company contributed $61 million and $7 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 | 6 Months Ended |
Jun. 30, 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 1,734 1 61 (522) 1,274 June 30, 2024 (8,415) 0 (1,939) (899) (11,253) 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 | 6 Months Ended |
Jun. 30, 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 Second Quarter Ended Fiscal Six Months Ended (Shares in Millions) June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 Basic net earnings per share from continuing operations $1.95 2.07 3.30 1.88 Basic net earnings (loss) per share from discontinued operations — (0.09) — 0.07 Total net earnings per share - basic 1.95 1.98 3.30 1.95 Average shares outstanding — basic 2,406.8 2,598.4 2,407.5 2,601.9 Potential shares exercisable under stock option plans 62.6 95.2 79.3 96.9 Less: shares which could be repurchased under treasury stock method (47.4) (67.9) (58.3) (68.1) Average shares outstanding — diluted 2,422.0 2,625.7 2,428.5 2,630.7 Diluted net earnings per share from continuing operations 1.93 2.05 3.27 1.86 Diluted net earnings (loss) per share from discontinuing operations — (0.09) — 0.07 Total net earnings per share - diluted $1.93 1.96 3.27 1.93 (Shares in Millions) The diluted net earnings per share calculation excluded the following number of shares related to stock options, as the exercise price of these options was greater than the average market value of the Company’s stock. 72.2 50.8 53.8 46.8 |
Segments of Business and Geogra
Segments of Business and Geographic Areas | 6 Months Ended |
Jun. 30, 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 Second Quarter Ended Fiscal Six Months Ended (Dollars in Millions) June 30, July 2, Percent June 30, July 2, Percent Change INNOVATIVE MEDICINE Immunology U.S. $2,978 2,865 4.0 % $5,431 5,313 2.2 % International 1,744 1,631 6.9 3,538 3,295 7.4 Worldwide 4,722 4,496 5.0 8,969 8,608 4.2 REMICADE U.S. 231 277 (16.7) 497 553 (10.1) U.S. Exports 35 33 7.9 62 74 (15.4) International 127 152 (16.6) 268 322 (16.9) Worldwide 393 462 (14.9) 827 949 (12.9) SIMPONI / SIMPONI ARIA U.S. 267 285 (6.3) 521 556 (6.2) International 270 244 10.9 569 510 11.7 Worldwide 537 529 1.6 1,091 1,066 2.3 STELARA U.S. 1,855 1,817 2.1 3,251 3,268 (0.5) International 1,030 981 5.0 2,085 1,974 5.6 Worldwide 2,885 2,797 3.1 5,336 5,241 1.8 TREMFYA U.S. 589 450 30.8 1,098 856 28.2 International 317 255 23.9 616 489 25.8 Worldwide 906 706 28.3 1,714 1,346 27.3 OTHER IMMUNOLOGY U.S. 2 4 (51.5) 2 7 (75.4) International 0 0 — 0 0 — Worldwide 2 4 (51.5) 2 7 (75.4) Infectious Diseases U.S. 334 395 (15.4) 658 787 (16.4) International 631 727 (13.1) 1,128 1,920 (41.3) Worldwide 965 1,121 (13.9) 1,786 2,707 (34.0) COVID-19 VACCINE U.S. 0 0 — 0 0 — International 172 285 (39.7) 197 1,032 (80.9) Worldwide 172 285 (39.7) 197 1,032 (80.9) Fiscal Second Quarter Ended Fiscal Six Months Ended (Dollars in Millions) June 30, July 2, Percent June 30, July 2, Percent Change EDURANT / rilpivirine U.S. 8 8 (2.8) 16 17 (7.0) International 288 258 11.5 603 529 14.1 Worldwide 297 266 11.0 620 546 13.4 PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA U.S. 321 382 (16.0) 635 760 (16.5) International 117 109 6.5 221 208 6.0 Worldwide 438 491 (11.0) 856 968 (11.6) OTHER INFECTIOUS DISEASES U.S. 5 5 18.5 7 10 (29.4) International 55 74 (25.6) 107 151 (29.3) Worldwide 61 79 (23.1) 114 161 (29.3) Neuroscience U.S. 1,102 1,029 7.1 2,156 2,007 7.4 International 679 764 (11.1) 1,428 1,590 (10.2) Worldwide 1,782 1,793 (0.6) 3,585 3,597 (0.3) CONCERTA / methylphenidate U.S. 34 64 (47.7) 75 134 (44.3) International 129 143 (9.8) 265 279 (5.1) Worldwide 163 208 (21.5) 340 414 (17.8) INVEGA SUSTENNA / XEPLION / INVEGA TRINZA / TREVICTA U.S. 784 721 8.8 1,549 1,434 8.0 International 269 310 (13.1) 561 641 (12.4) Worldwide 1,054 1,031 2.2 2,110 2,075 1.7 SPRAVATO U.S. 226 144 57.9 417 255 63.9 International 44 25 73.5 78 45 74.6 Worldwide 271 169 60.2 496 300 65.5 OTHER NEUROSCIENCE U.S. 57 100 (42.5) 115 184 (37.3) International 237 286 (17.0) 524 625 (16.2) Fiscal Second Quarter Ended Fiscal Six Months Ended (Dollars in Millions) June 30, July 2, Percent June 30, July 2, Percent Change Worldwide 294 386 (23.7) 639 809 (21.0) Oncology U.S. 2,636 2,069 27.4 5,019 3,958 26.8 International 2,455 2,329 5.4 4,885 4,552 7.3 Worldwide 5,090 4,398 15.7 9,904 8,510 16.4 CARVYKTI U.S. 167 114 46.5 307 184 66.8 International 20 3 * 36 5 * Worldwide 186 117 59.8 343 189 81.5 DARZALEX U.S. 1,641 1,322 24.2 3,105 2,513 23.6 International 1,237 1,110 11.5 2,465 2,182 12.9 Worldwide 2,878 2,431 18.4 5,570 4,695 18.6 ERLEADA U.S. 318 241 32.2 603 490 23.0 International 418 326 28.0 822 619 32.8 Worldwide 736 567 29.8 1,425 1,109 28.4 IMBRUVICA U.S. 246 262 (6.4) 511 532 (3.9) International 525 579 (9.4) 1,043 1,136 (8.3) Worldwide 770 841 (8.5) 1,554 1,668 (6.9) TECVAYLI U.S. 104 82 27.5 205 139 47.7 International 30 12 * 63 18 * Worldwide 135 94 42.9 268 157 70.2 ZYTIGA / abiraterone acetate U.S. 11 9 21.6 20 25 (19.7) International 154 218 (29.6) 326 447 (27.2) Worldwide 165 227 (27.7) 346 472 (26.8) OTHER ONCOLOGY U.S. 148 40 * 267 75 * International 71 80 (10.4) 131 144 (8.5) Worldwide 221 120 84.2 399 219 82.4 Pulmonary Hypertension U.S. 743 684 8.7 1,509 1,284 17.5 International 296 289 2.6 579 561 3.4 Worldwide 1,039 972 6.9 2,088 1,844 13.2 OPSUMIT U.S. 373 328 13.7 729 601 21.3 International 170 179 (5.0) 339 346 (2.2) Worldwide 544 507 7.1 1,068 947 12.7 UPTRAVI Fiscal Second Quarter Ended Fiscal Six Months Ended (Dollars in Millions) June 30, July 2, Percent June 30, July 2, Percent Change U.S. 349 338 3.3 741 642 15.5 International 76 61 24.6 152 119 27.6 Worldwide 426 399 6.6 894 761 17.4 OTHER PULMONARY HYPERTENSION U.S. 20 18 18.8 38 41 (6.1) International 50 48 3.1 89 95 (6.7) Worldwide 71 66 7.2 127 136 (6.5) Cardiovascular / Metabolism / Other U.S. 717 776 (7.7) 1,348 1,491 (9.6) International 176 174 0.6 373 386 (3.6) Worldwide 892 950 (6.2) 1,721 1,877 (8.3) XARELTO U.S. 587 637 (7.9) 1,105 1,215 (9.1) International — — — — — — Worldwide 587 637 (7.9) 1,105 1,215 (9.1) OTHER U.S. 129 138 (6.4) 243 275 (11.8) International 176 174 0.6 373 386 (3.6) Worldwide 305 313 (2.5) 616 662 (7.0) TOTAL INNOVATIVE MEDICINE U.S. 8,510 7,818 8.9 16,122 14,841 8.6 International 5,980 5,913 1.1 11,930 12,303 (3.0) Worldwide 14,490 13,731 5.5 28,052 27,144 3.3 MEDTECH Cardiovascular (1) U.S. 1,119 908 23.3 2,144 1,771 21.1 International 753 712 5.7 1,534 1,352 13.4 Worldwide 1,873 1,620 15.6 3,679 3,123 17.8 ELECTROPHYSIOLOGY U.S. 705 609 15.7 1,397 1,180 18.4 International 618 587 5.4 1,270 1,109 14.6 Worldwide 1,323 1,196 10.6 2,667 2,288 16.5 ABIOMED U.S. 309 272 13.2 612 536 14.1 International 72 59 20.7 139 119 16.5 Worldwide 379 331 14.5 750 655 14.5 SHOCKWAVE (2) U.S. 77 — * 77 — * International 0 — — 0 — — Worldwide 77 — * 77 — * OTHER CARDIOVASCULAR (1) U.S. 29 27 12.5 59 55 7.7 Fiscal Second Quarter Ended Fiscal Six Months Ended (Dollars in Millions) June 30, July 2, Percent June 30, July 2, Percent Change International 64 67 (4.5) 126 125 0.8 Worldwide 93 93 0.3 185 180 2.9 Orthopaedics U.S. 1,422 1,388 2.5 2,870 2,751 4.3 International 890 878 1.4 1,782 1,759 1.3 Worldwide 2,312 2,265 2.1 4,652 4,510 3.2 HIPS U.S. 265 250 5.8 535 491 8.9 International 152 147 3.4 304 296 2.6 Worldwide 417 397 4.9 839 787 6.5 KNEES U.S. 230 221 4.2 472 447 5.5 International 163 142 14.9 323 284 13.6 Worldwide 394 363 8.4 795 731 8.7 TRAUMA U.S. 498 483 3.0 1,002 974 2.9 International 260 255 2.4 521 522 0.0 Worldwide 759 739 2.8 1,524 1,496 1.9 SPINE, SPORTS & OTHER U.S. 430 433 (0.8) 862 839 2.7 International 314 334 (6.1) 634 657 (3.5) Worldwide 743 766 (3.1) 1,495 1,495 0.0 Surgery U.S. 995 1,015 (2.0) 1,982 1,990 (0.4) International 1,493 1,580 (5.5) 2,922 3,039 (3.8) Worldwide 2,488 2,594 (4.1) 4,904 5,028 (2.5) ADVANCED U.S. 466 466 0.1 912 910 0.2 International 675 757 (10.8) 1,316 1,430 (8.0) Worldwide 1,141 1,222 (6.7) 2,228 2,340 (4.8) GENERAL U.S. 528 548 (3.7) 1,070 1,079 (0.9) International 818 823 (0.7) 1,606 1,608 (0.2) Worldwide 1,346 1,372 (1.9) 2,676 2,688 (0.5) Vision U.S. 523 529 (1.2) 1,070 1,087 (1.5) International 763 778 (2.0) 1,473 1,521 (3.2) Worldwide 1,285 1,308 (1.7) 2,543 2,608 (2.5) CONTACT LENSES / OTHER U.S. 409 409 0.2 847 853 (0.6) Fiscal Second Quarter Ended Fiscal Six Months Ended (Dollars in Millions) June 30, July 2, Percent June 30, July 2, Percent Change International 509 530 (4.0) 981 1,039 (5.6) Worldwide 918 939 (2.2) 1,828 1,892 (3.4) SURGICAL U.S. 113 120 (5.8) 223 234 (4.8) International 254 249 2.1 492 482 2.1 Worldwide 367 369 (0.5) 715 716 (0.1) TOTAL MEDTECH U.S. 4,059 3,839 5.7 8,067 7,598 6.2 International 3,898 3,949 (1.3) 7,711 7,671 0.5 Worldwide 7,957 7,788 2.2 15,778 15,269 3.3 WORLDWIDE U.S. 12,569 11,657 7.8 24,189 22,439 7.8 International 9,878 9,862 0.2 19,641 19,974 (1.7) Worldwide $22,447 21,519 4.3 % $43,830 42,413 3.3 % * Percentage greater than 100% or not meaningful (1) Previously referred to as Interventional (2) Acquired on May 31, 2024 Earnings before provision for taxes by segment Fiscal Second Quarter Ended Fiscal Six Months Ended (Dollars in Millions) June 30, July 2, Percent June 30, July 2, Percent Innovative Medicine (1) $5,459 4,812 13.4 % $10,428 9,214 13.2 % MedTech (2) 1,089 1,671 (34.8) 2,609 3,080 (15.3) Segment earnings before provision for taxes 6,548 6,483 1.0 13,037 12,294 6.0 Less: Expense not allocated to segments (3) 800 177 3,575 7,275 Worldwide income (loss) before tax $5,748 6,306 (8.8) % $9,462 5,019 88.5 % (1) Innovative Medicine includes: • Intangible amortization expense of $0.7 billion in both the fiscal second quarter of 2024 and 2023. Intangible amortization expense of $1.4 billion and $1.5 billion in the fiscal six months of 2024 and 2023, respectively. • One-time COVID-19 Vaccine related exit costs of $0.1 billion in both the fiscal second quarter and fiscal six months of 2024. One-time COVID-19 Vaccine related exit costs of $0.2 billion and $0.6 billion in the fiscal second quarter and fiscal six months of 2023, respectively. • Restructuring income of $0.1 billion in the fiscal second quarter of 2024 and a restructuring related charge of $0.1 billion in the fiscal six months of 2024. A restructuring related charge of $0.1 billion and $0.3 billion in the fiscal second quarter and fiscal six months of 2023, respectively. Refer to Note 12 for additional details. • An In-process research and development impairment of $0.2 billion in the fiscal second quarter and fiscal six months of 2024 associated with the M710 (biosimilar) asset acquired from Momenta in 2020. (2) MedTech includes: • Intangible amortization expense of $0.4 billion in both the fiscal second quarter of 2024 and 2023. Intangible amortization expense of $0.8 billion in both the fiscal six months of 2024 and 2023. • Favorable intellectual property litigation settlements of $0.3 billion in both the fiscal second quarter and fiscal six months of 2023 • Acquisition and integration related expense of $0.6 billion and $0.6 billion, primarily driven by the Shockwave acquisition, in the fiscal second quarter and fiscal six months of 2024, respectively. Acquisition and integration related expense of $0.1 billion in the fiscal six months of 2023. • A gain of $0.2 billion related to the Acclarent divestiture recorded in Other (income) expense in the fiscal second quarter and fiscal six months of 2024 • Restructuring related charge of $0.1 billion in the fiscal second quarter and fiscal six months of 2024 (3 ) Amounts not allocated to segments include interest (income)/expense and general corporate (income)/expense. The fiscal second quarters of 2024 and 2023 include charges for talc matters of $0.3 billion and $0.2 billion, respectively. The fiscal six months of 2024 and 2023 include charges for talc matters of $3.0 billion and $7.1 billion, respectively (See Note 11, Legal Proceedings, for additional details). The fiscal second quarter and six months of 2024 includes a loss of approximately $0.4 billion related to the debt to equity exchange of the Company's remaining shares of Kenvue Common Stock Sales by geographic area Fiscal Second Quarter Ended Fiscal Six Months Ended (Dollars in Millions) June 30, 2024 July 2, 2023 Percent June 30, 2024 July 2, 2023 Percent Change United States $12,569 11,657 7.8 % $24,189 22,439 7.8 % Europe 5,214 5,131 1.6 10,377 10,721 (3.2) Western Hemisphere, excluding U.S. 1,212 1,136 6.7 2,406 2,212 8.8 Asia-Pacific, Africa 3,452 3,595 (4.0) 6,858 7,041 (2.6) Total $22,447 21,519 4.3 % $43,830 42,413 3.3 % |
Acquisitions and Divestitures
Acquisitions and Divestitures | 6 Months Ended |
Jun. 30, 2024 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | Acquisitions and divestitures Subsequent to the quarter, on July 11, 2024, the Company completed the acquisition of Yellow Jersey Therapeutics (Yellow Jersey), a demerged subsidiary of Numab Therapeutics, to secure the global rights to NM26, a novel, investigational first-in-class bispecific antibody targeting two clinically proven pathways in atopic dermatitis (AD), in an all-cash transaction for approximately $1.25 billion. The transaction is being accounted for as an asset acquisition, resulting in an in-process research and development (IPR&D) charge of approximately $1.25 billion recorded as part of research and development expense and the results of operations will be included in the Innovative Medicine segment as of the acquisition date. The acquisition is not expected to be deductible for tax purposes. On June 20, 2024, the Company completed the acquisition of Proteologix, Inc., a privately held biotechnology company focused on bispecific antibodies for immune-mediated diseases, for approximately $0.8 billion net of cash acquired, with potential for an additional milestone payment. 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 $1.2 billion, primarily non-amortizable intangible assets, inclusive of purchased IPR&D, for $0.9 billion, goodwill for $0.3 billion, and $0.3 billion of liabilities acquired which included $0.1 billion related to a contingent consideration. The preliminary purchase price allocation is subject to any subsequent valuation adjustments within the measurement period. A probability of success factor ranging from 30% to 45% was used in the fair value calculation to reflect inherent regulatory and commercial risk of the IPR&D. The discount rate applied was approximately 16%. 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 second quarter of 2024 were not material. On May 31, 2024, the Company completed the acquisition of Shockwave Medical Inc. (SWAV)(Shockwave), 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) in an all-cash merger transaction. The Company acquired all the outstanding shares of Shockwave’s common stock for $335.00 per share through a merger of Shockwave with a subsidiary of the Company. The transaction was accounted for as a business combination and the results of operations were included in the MedTech segment as of the acquisition date. Details of the fair value amounts recognized for assets acquired and liabilities assumed as of the acquisition date: (Dollars in Billions) Assets acquired: Cash $1.1 Goodwill 7.5 Amortizable intangibles 5.3 IPR&D 0.6 Inventory 0.5 Other assets 0.5 Total assets acquired $15.5 Liabilities assumed: Deferred taxes $1.5 Notes payable* 1.0 Accrued liabilities** 0.4 Total liabilities assumed $2.9 Net assets acquired $12.6 Net assets acquired as of May 31, 2024 $12.6 Less: Cash acquired 1.1 Equity awards settled 0.6 Settlement of Note payable* 1.0 Total enterprise value as of June 30, 2024 $13.1 • Represents the convertible debt which was subsequently paid in the fiscal second quarter of 2024. ** Includes $0.2 billion of equity awards The preliminary purchase price allocation is subject to any subsequent valuation adjustments within the measurement period. 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 second quarter were $0.5 billion of which $0.4 billion related to equity awards and was recorded in Other (income) expense. The amortizable intangible assets were primarily comprised of already in-market CAD and PAD IVL products with the average weighted lives of 14 years. The IPR&D assets were valued for technology programs for unapproved products. The value of the IPR&D was calculated using a probability-adjusted cash flow projection discounted for the risk inherent in such projects with the weighted average probability of success factors of approximately 50%. The discount rate applied was 9.0%. During the fiscal first quarter of 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 six months of 2024 were not material. Divestitures In the fiscal second quarter of 2024, the Company completed the divestiture of Acclarent resulting in approximately $0.3 billion in proceeds. In the fiscal first quarter of 2024, the Company completed the divestiture of Ponvory outside of the U.S. resulting in approximately $0.2 billion in proceeds. There were no material acquisitions or divestitures in the fiscal first quarter or fiscal second quarter of 2023. |
Legal Proceedings
Legal Proceedings | 6 Months Ended |
Jun. 30, 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 June 30, 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 LLT Management LLC (previously known as LTL 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 June 2014, the Mississippi Attorney General filed a complaint against the Company alleging violation of 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). 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. The Company has reached an agreement to resolve this matter. Forty-two states and the District of Columbia commenced a joint investigation into the Company’s marketing of its talcum powder products. 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. In June 2024, the settlements were finalized. 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 and a trial is scheduled to occur in December 2024. In March 2024, the court granted the Company's motion for a renewed Daubert hearing prior to the trial. 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 $8.0 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 resolved 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 $3.0 billion, through the second fiscal quarter 2024. As of June 30, 2024, the total present value of the reserve is approximately $10.6 billion (or nominal value of approximately $12.8 billion), net of payments made in fiscal 2024. 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. 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. The parties have finalized the agreement, which will be submitted to the Bankruptcy Court for approval on August 15, 2024. Imerys and Cyprus have adjourned the hearing on their respective disclosure statements pending submission of the agreement to the court. 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. In February 2024, fact discovery closed, the Court ordered the parties to mediate, and stayed the case pending mediation. In May 2024, the parties participated in an unsuccessful mediation. In June 2024, the parties requested that the case remain stayed, except for certain limited discovery, pending a decision from the Third Circuit on the 23(f) petition. 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. The Company removed the lawsuit to the United States District Court for the Southern District of California. In January 2021, the court granted the Company's motion to dismiss plaintiffs' Fifth Amended Complaint with prejudice. On April 29, 2024, the Ninth Circuit affirmed the District Court's order dismissing the case with prejudice. 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 70% of the all-in settlement was paid by the end of fiscal second quarter 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, and health insurers/payors. Counting the private litigant cases, there are approximately 20 remaining opioid cases against the Company and JPI in various state courts, 420 remaining cases in the Ohio MDL, and 3 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. The proposed class action in Quebec on behalf of residents diagnosed with opioid use disorder was authorized to proceed against Janssen Inc. and other industry members in April 2024; leave to appeal has been sought. 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. In May 2024, briefing on the shareholder's petition for certification concluded. 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 June 30, 2024: Product or product category Number of plaintiffs Body powders containing talc, primarily JOHNSON’S Baby Powder 62,370 DePuy ASR XL Acetabular System and DePuy ASR Hip Resurfacing System 160 PINNACLE Acetabular Cup System 910 Pelvic meshes 6,230 ETHICON PHYSIOMESH Flexible Composite Mesh 170 RISPERDAL 20 ELMIRON 2,170 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, and Ireland, and class actions in Israel, Australia, Canada and South Africa. The vast majority of these actions are now resolved. The Company has established accruals with respect to product liability litigation associated with Ethicon’s pelvic mesh products. Ethicon Physiomesh Following a June 2016 worldwide market withdrawal of Ethicon Physiomesh Flexible Composite Mesh (Physiomesh), claims for personal injury have been made against Ethicon, Inc. (Ethicon) and the Company alleging personal injury arising out of the use of this hernia mesh device. Cases filed in federal courts in the United States have been organized as a multi-district litigation (MDL) in the United States District Court for the Northern District of Georgia. A multi-county litigation (MCL) also has been formed in New Jersey state court and assigned to Atlantic County for cases pending in New Jersey. In addition to the matters in the MDL and MCL, there are additional lawsuits pending in the United States District Court for the Southern District of Ohio, which are part of the MDL for polypropylene mesh devices manufactured by C.R. Bard, Inc., and lawsuits pending in two New Jersey MCLs formed for Proceed/Proceed Ventral Patch and Prolene Hernia systems, and lawsuits pending outside the United States. In May 2021, Ethicon and lead counsel for the plaintiffs entered into a term sheet to resolve approximately 3,600 Physiomesh cases (covering approximately 4,300 plaintiffs) pending in the MDL and MCL at that time. A master settlement agreement (MSA) was entered into in September 2021 and includes 3,729 cases in the MDL and MCL. Other than a small number of cases still pending in the MDL, all Physiomesh matters in the United States have been resolved or are undergoing formal review for purposes of settlement. Claims have also been filed against Ethicon and the Company alleging personal injuries arising from the PROCEED Mesh and PROCEED Ventral Patch hernia mesh products. In March 2019, the New Jersey Supreme Court entered an order consolidating these cases pending in New Jersey as an MCL in Atlantic County Superior Court. Additional cases have been filed in various federal and state courts in the United States, and in jurisdictions outside the United States. Ethicon and the Company also have been subject to claims for personal injuries arising from the PROLENE Polypropylene Hernia System. In January 2020, the New Jersey Supreme Court created an MCL in Atlantic County Superior Court to handle such cases. Cases involving this product have also been filed in other federal and state courts in the United States. In October 2022, an agreement in principle, subject to various conditions, was reached to settle the majority of the pending cases involving Proceed, Proceed Ventral Patch, Prolene Hernia System and related multi-layered mesh products, as well as a number of unfiled claims. All litigation activities in the two New Jersey MCLs are stayed pending effectuation of the proposed settlement. Future cases that are filed in the New Jersey MCLs will be subject to docket control orders requiring early expert reports and discovery requirements. The Company has established accruals with respect to product liability litigation associated with Ethicon Physiomesh Flexible Composite Mesh, PROCEED Mesh and PROCEED Ventral Patch, and PROLENE Polypropylene Hernia System products. Innovative Medicine RISPERDAL Claims for personal injury have been made against Janssen Pharmaceuticals, Inc. and the Company arising out of the use of RISPERDAL, and related compounds, indicated for the treatment of schizophrenia, acute manic or mixed episodes associated with bipolar I disorder and irritability associated with autism. Lawsuits primarily have been filed in state courts in Pennsylvania, California, and Missouri. Other actions are pending in various courts in the United States and Canada. The Company continues to defend RISPERDAL product liability lawsuits, and continues to evaluate potential costs related to those claims. The Company has successfully defended a number of these cases but there have been verdicts against the Company, including a verdict in October 2019 of $8.0 billion of punitive damages related to one plaintiff, which the trial judge reduced to $6.8 million in January 2020. In September 2021, the Company entered into a settlement in principle with the counsel representing plaintiffs in this matter and in substantially all of the outstanding cases in the United States. The costs associated with this and other settlements are reflected in the Company’s accruals. ELMIRON Claims for personal injury have be |
Kenvue Separation
Kenvue Separation | 6 Months Ended |
Jun. 30, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Kenvue Separation | 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 Second Quarter Ended Fiscal Six Months Ended (Dollars in Millions) July 2, 2023 July 2, 2023 Sales to customers $4,011 $7,863 Cost of products sold 1,750 3,458 Gross profit 2,261 4,405 Selling, marketing and administrative expenses 1,269 2,501 Research and development expense 126 234 Interest Income (42) (79) Interest expense, net of portion capitalized 128 131 Other (income) expense, net 324 612 Earnings from Discontinued Operations Before Provision for Taxes on Income 456 1,006 Provision for taxes on income 688 815 Net (loss)/earnings from Discontinued Operations $(232) $191 The following table presents depreciation, amortization and capital expenditures of the discontinued operations related to Kenvue: Fiscal Second Quarter Ended Fiscal Six Months Ended (Dollars in Millions) July 2, 2023 July 2, 2023 Depreciation and Amortization $149 $302 Capital expenditures $92 $139 |
Restructuring
Restructuring | 6 Months Ended |
Jun. 30, 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 income of $0.1 billion in the fiscal second quarter of 2024 and $0.1 billion of expense in the fiscal six months of 2024, included asset divestments, the termination of partnered and non-partnered development program costs and asset impairments. The pre-tax restructuring charge of approximately $0.1 billion and $0.3 billion in the fiscal second quarter and fiscal six months of 2023, respectively, 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 this restructuring program 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 $0.1 billion and $0.1 billion in the fiscal second quarter and fiscal six months of 2024, respectively, primarily included costs related to market and product exits. Total project costs of approximately $0.4 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 (income) expenses for 2024: (Pre-tax Dollars in Millions) Fiscal Second Quarter Ended Fiscal Six Months Ended Innovative Medicine Segment (1) $(63) 81 MedTech Segment (2) 52 79 Total Programs $(11) 160 (1) Included in Restructuring on the Consolidated Statement of Earnings (2) The fiscal second quarter of 2024 included $50 million in Restructuring and $2 million in Cost of products sold on the Consolidated Statement of Earnings. The fiscal six months of 2024 included $70 million in Restructuring and $9 million in Cost of products sold on the Consolidated Statement of Earnings. Restructuring reserves as of June 30, 2024 and December 31, 2023 were insignificant. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | |
Pay vs Performance Disclosure | ||||
Net earnings | $ 4,686 | $ 5,144 | $ 7,941 | $ 5,076 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 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) | 6 Months Ended |
Jun. 30, 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 six months in 2024. Recently issued accounting standards Not adopted as of June 30, 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. While this accounting standard will increase disclosures, it will not have a material impact on the Company’s Consolidated Financial Statement results. 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. While this accounting standard will increase disclosures, it will not have a material impact on the Company’s Consolidated Financial Statement results. There were no new material accounting standards issued in the fiscal second 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) | 6 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | (Dollars in Millions) June 30, 2024 December 31, 2023 Raw materials and supplies $2,407 2,355 Goods in process 2,556 1,952 Finished goods 7,206 6,874 Total inventories $12,169 11,181 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | (Dollars in Millions) June 30, 2024 December 31, 2023 Intangible assets with definite lives: Patents and trademarks — gross $43,438 40,417 Less accumulated amortization (24,835) (24,808) Patents and trademarks — net 18,603 15,609 Customer relationships and other intangibles — gross 20,176 20,322 Less accumulated amortization (13,018) (12,685) Customer relationships and other intangibles — net (1) 7,158 7,637 Intangible assets with indefinite lives: Trademarks 1,655 1,714 Purchased in-process research and development 12,309 9,215 Total intangible assets with indefinite lives 13,964 10,929 Total intangible assets — net $39,725 34,175 (1) The majority is comprised of customer relationships |
Goodwill | Goodwill as of June 30, 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 563 7,494 8,057 Goodwill, related to divestitures — (56) (56) Currency translation/Other (202) (107) (309) Goodwill at June 30, 2024 $10,768 33,482 44,250 |
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 $4,500 3,900 3,300 2,700 2,000 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 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 second quarters ended June 30, 2024 and July 2, 2023, net of tax: June 30, 2024 July 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 $— — — (53) — — — — (175) — Derivatives designated as hedging instruments — — — 53 — — — — 175 — 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 — — — 33 — — — — 33 — Amount of gain or (loss) recognized in AOCI — — — 33 — — — — 33 — Gain (Loss) on cash flow hedging relationship: Forward foreign exchange contracts: Amount of gain or (loss) reclassified from AOCI into income (1) 94 8 — 3 (15) 56 (12) — 3 Amount of gain or (loss) recognized in AOCI 2 66 11 — 1 (14) 251 7 — 18 Cross currency interest rate swaps contracts: Amount of gain or (loss) reclassified from AOCI into income — — — 42 — — — — 74 — Amount of gain or (loss) recognized in AOCI $— — — (38) — — — — (432) — The following table is a summary of the activity related to derivatives and hedges for the fiscal six months ended June 30, 2024 and July 2, 2023, net of tax: June 30, 2024 July 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 $— — — (45) — — — — (6) — Derivatives designated as hedging instruments — — — 45 — — — — 6 — 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 — — — 67 — — — — 67 — Amount of gain or (loss) recognized in AOCI — — — 67 — — — — 67 — Gain (Loss) on cash flow hedging relationship: Forward foreign exchange contracts: Amount of gain or (loss) reclassified from AOCI into income — 259 12 — 1 (3) (90) (25) — 5 Amount of gain or (loss) recognized in AOCI (1) 47 33 — 5 10 396 (29) — 4 Cross currency interest rate swaps contracts: Amount of gain or (loss) reclassified from AOCI into income — — — 91 — — — — 182 — Amount of gain or (loss) recognized in AOCI $— — — (243) — — — — (15) — The following table is the effect of net investment hedges for the fiscal second quarters ended in 2024 and 2023: Gain/(Loss) Recognized In Accumulated OCI Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income Into Income Gain/(Loss) Reclassified From (Dollars in Millions) June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 Debt $46 11 Interest (income) expense — — Cross Currency interest rate swaps $92 (24) Interest (income) expense — — The following table is the effect of net investment hedges for the fiscal six months 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) June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 Debt $130 (66) Interest (income) expense — — Cross Currency interest rate swaps $820 666 Interest (income) expense — — |
Schedule of Derivative Financial Instruments and Classification on Consolidated Balance Sheet | As of June 30, 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) June 30, 2024 December 31, 2023 June 30, 2024 December 31, 2023 Long-term Debt $8,812 8,862 (1,274) (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 second quarters ended 2024 and 2023: Gain/(Loss) Gain/(Loss) (Dollars in Millions) Location of Gain /(Loss) Recognized in Income on Derivative Fiscal Second Quarter Ended Fiscal Six Months Ended Derivatives Not Designated as Hedging Instruments June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 Foreign Exchange Contracts Other (income) expense $20 33 45 2 |
Summary of Activity Related to Equity Investments | The following table is a summary of the activity related to equity investments: December 31, 2023 June 30, 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 (4) (3,999) 470 470 Equity Investments without readily determinable value $696 (15) (8) 673 673 (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 June 30, 2024 and December 31, 2023 were as follows: June 30, 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 $— 523 — 523 539 Interest rate contracts (2) — 1,392 — 1,392 988 Total — 1,915 — 1,915 1,527 Liabilities: Forward foreign exchange contracts — 512 — 512 624 Interest rate contracts (2) — 3,874 — 3,874 5,338 Total — 4,386 — 4,386 5,962 Derivatives not designated as hedging instruments: Assets: Forward foreign exchange contracts — 27 — 27 64 Liabilities: Forward foreign exchange contracts — 19 — 19 75 Other Investments: Equity investments (3) 470 — — 470 4,473 Debt securities (4) — 6,840 — 6,840 8,874 Other Liabilities Contingent consideration (5) $— — 1,248 1,248 1,092 Gross to Net Derivative Reconciliation June 30, 2024 December 31, 2023 (Dollars in Millions) Total Gross Assets $1,942 1,591 Credit Support Agreement (CSA) (1,911) (1,575) Total Net Asset 31 16 Total Gross Liabilities 4,405 6,037 Credit Support Agreement (CSA) (4,229) (5,604) Total Net Liabilities $176 433 Summarized information about changes in liabilities for contingent consideration for the fiscal second quarters ended June 30, 2024 and July 2, 2023 is as follows: June 30, 2024 July 2, 2023 (Dollars in Millions) Beginning Balance $1,092 1,120 Changes in estimated fair value (6) 44 25 Additions 112 — Payments — (3) Ending Balance $1,248 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 June 30, 2024 and December 31, 2023, respectively. (6) |
Marketable Securities | The Company's cash, cash equivalents and current marketable securities as of June 30, 2024 comprised: (Dollars in Millions) Carrying Amount Unrealized Gain Estimated Fair Value Cash & Cash Equivalents Current Marketable Securities Cash $4,247 — 4,247 4,247 — U.S. Gov't securities — — — — — Non-U.S. sovereign securities 150 — 150 150 — U.S. reverse repurchase agreements 8,496 — 8,496 8,496 — Corporate debt securities (1) — — — — — Money market funds 4,883 — 4,883 4,883 — Time deposits (1) 859 — 859 859 — Subtotal 18,635 — 18,635 18,635 — U.S. Gov’t securities 6,585 — 6,585 6,182 403 U.S. Gov’t Agencies 11 — 11 — 11 Other sovereign securities 2 — 2 — 2 Corporate debt securities 242 — 242 61 181 Subtotal available for sale debt (2) $6,840 — 6,840 6,243 597 Total cash, cash equivalents and current marketable securities $25,475 — 25,475 24,878 597 (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 June 30, 2024 are as follows: (Dollars in Millions) Cost Basis Fair Value Due within one year $6,821 6,821 Due after one year through five years 19 19 Due after five years through ten years — — Total debt securities $6,840 6,840 |
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 June 30, 2024: (Dollars in Millions) Carrying Amount Estimated Fair Value Financial Liabilities Current Debt $9,855 9,835 Non-Current Debt 0.55% Notes due 2025 973 950 2.46% Notes due 2026 1,998 1,921 2.95% Notes due 2027 902 955 0.95% Notes due 2027 1,430 1,334 2.90% Notes due 2028 1,497 1,418 1.150% Notes due 2028 (750MM Euro 1.0721) 801 744 4.80% Notes due 2029 (1) 1,145 1,161 6.95% Notes due 2029 298 332 1.30% Notes due 2030 1,626 1,445 4.90% Notes due 2031 (1) 1,145 1,161 3.20% Notes due 2032 (700MM Euro 1.0721) (1) 747 750 4.95% Notes due 2033 499 513 4.375% Notes due 2033 854 835 4.95% Notes due 2034 (1) 846 860 1.650% Notes due 2035 (1.5B Euro 1.0721) 1,597 1,384 3.35% Notes due 2036 (800MM Euro 1.0721) (1) 852 853 3.587% Notes due 2036 855 876 5.95% Notes due 2037 994 1,089 3.625% Notes due 2037 1,346 1,310 3.40% Notes due 2038 993 839 5.85% Notes due 2038 697 756 4.50% Notes due 2040 541 521 2.10% Notes due 2040 836 670 4.85% Notes due 2041 297 293 4.50% Notes due 2043 496 470 3.55% Notes due 2044 (1.0B Euro 1.0721) (1) 1,062 1,062 3.73% Notes due 2046 1,978 1,609 3.75% Notes due 2047 816 805 3.50% Notes due 2048 743 579 2.25% Notes due 2050 807 593 5.25% Notes due 2054 (1) 843 854 2.45% Notes due 2060 1,055 707 Other 67 67 Total Non-Current Debt $31,636 29,716 (1) |
Pensions and Other Benefit Pl_2
Pensions and Other Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 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 Second Quarter Ended Fiscal Six Months Ended Retirement Plans Other Benefit Plans Retirement Plans Other Benefit Plans (Dollars in Millions) June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 Service cost $222 215 69 69 446 425 138 137 Interest cost 351 371 52 55 703 723 104 109 Expected return on plan assets (639) (694) (1) (2) (1,281) (1,362) (3) (3) Amortization of prior service cost/(credit) (46) (46) (1) (1) (92) (92) (1) (1) Recognized actuarial (gains)/losses 44 (50) 13 7 87 (100) 26 13 Curtailments and settlements (8) — — — (8) — — — Net periodic benefit cost/(credit) $(76) (204) 132 128 (145) (406) 264 255 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 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 1,734 1 61 (522) 1,274 June 30, 2024 (8,415) 0 (1,939) (899) (11,253) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 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 Second Quarter Ended Fiscal Six Months Ended (Shares in Millions) June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 Basic net earnings per share from continuing operations $1.95 2.07 3.30 1.88 Basic net earnings (loss) per share from discontinued operations — (0.09) — 0.07 Total net earnings per share - basic 1.95 1.98 3.30 1.95 Average shares outstanding — basic 2,406.8 2,598.4 2,407.5 2,601.9 Potential shares exercisable under stock option plans 62.6 95.2 79.3 96.9 Less: shares which could be repurchased under treasury stock method (47.4) (67.9) (58.3) (68.1) Average shares outstanding — diluted 2,422.0 2,625.7 2,428.5 2,630.7 Diluted net earnings per share from continuing operations 1.93 2.05 3.27 1.86 Diluted net earnings (loss) per share from discontinuing operations — (0.09) — 0.07 Total net earnings per share - diluted $1.93 1.96 3.27 1.93 (Shares in Millions) The diluted net earnings per share calculation excluded the following number of shares related to stock options, as the exercise price of these options was greater than the average market value of the Company’s stock. 72.2 50.8 53.8 46.8 |
Segments of Business and Geog_2
Segments of Business and Geographic Areas (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Sales By Segment Of Business | Fiscal Second Quarter Ended Fiscal Six Months Ended (Dollars in Millions) June 30, July 2, Percent June 30, July 2, Percent Change INNOVATIVE MEDICINE Immunology U.S. $2,978 2,865 4.0 % $5,431 5,313 2.2 % International 1,744 1,631 6.9 3,538 3,295 7.4 Worldwide 4,722 4,496 5.0 8,969 8,608 4.2 REMICADE U.S. 231 277 (16.7) 497 553 (10.1) U.S. Exports 35 33 7.9 62 74 (15.4) International 127 152 (16.6) 268 322 (16.9) Worldwide 393 462 (14.9) 827 949 (12.9) SIMPONI / SIMPONI ARIA U.S. 267 285 (6.3) 521 556 (6.2) International 270 244 10.9 569 510 11.7 Worldwide 537 529 1.6 1,091 1,066 2.3 STELARA U.S. 1,855 1,817 2.1 3,251 3,268 (0.5) International 1,030 981 5.0 2,085 1,974 5.6 Worldwide 2,885 2,797 3.1 5,336 5,241 1.8 TREMFYA U.S. 589 450 30.8 1,098 856 28.2 International 317 255 23.9 616 489 25.8 Worldwide 906 706 28.3 1,714 1,346 27.3 OTHER IMMUNOLOGY U.S. 2 4 (51.5) 2 7 (75.4) International 0 0 — 0 0 — Worldwide 2 4 (51.5) 2 7 (75.4) Infectious Diseases U.S. 334 395 (15.4) 658 787 (16.4) International 631 727 (13.1) 1,128 1,920 (41.3) Worldwide 965 1,121 (13.9) 1,786 2,707 (34.0) COVID-19 VACCINE U.S. 0 0 — 0 0 — International 172 285 (39.7) 197 1,032 (80.9) Worldwide 172 285 (39.7) 197 1,032 (80.9) Fiscal Second Quarter Ended Fiscal Six Months Ended (Dollars in Millions) June 30, July 2, Percent June 30, July 2, Percent Change EDURANT / rilpivirine U.S. 8 8 (2.8) 16 17 (7.0) International 288 258 11.5 603 529 14.1 Worldwide 297 266 11.0 620 546 13.4 PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA U.S. 321 382 (16.0) 635 760 (16.5) International 117 109 6.5 221 208 6.0 Worldwide 438 491 (11.0) 856 968 (11.6) OTHER INFECTIOUS DISEASES U.S. 5 5 18.5 7 10 (29.4) International 55 74 (25.6) 107 151 (29.3) Worldwide 61 79 (23.1) 114 161 (29.3) Neuroscience U.S. 1,102 1,029 7.1 2,156 2,007 7.4 International 679 764 (11.1) 1,428 1,590 (10.2) Worldwide 1,782 1,793 (0.6) 3,585 3,597 (0.3) CONCERTA / methylphenidate U.S. 34 64 (47.7) 75 134 (44.3) International 129 143 (9.8) 265 279 (5.1) Worldwide 163 208 (21.5) 340 414 (17.8) INVEGA SUSTENNA / XEPLION / INVEGA TRINZA / TREVICTA U.S. 784 721 8.8 1,549 1,434 8.0 International 269 310 (13.1) 561 641 (12.4) Worldwide 1,054 1,031 2.2 2,110 2,075 1.7 SPRAVATO U.S. 226 144 57.9 417 255 63.9 International 44 25 73.5 78 45 74.6 Worldwide 271 169 60.2 496 300 65.5 OTHER NEUROSCIENCE U.S. 57 100 (42.5) 115 184 (37.3) International 237 286 (17.0) 524 625 (16.2) Fiscal Second Quarter Ended Fiscal Six Months Ended (Dollars in Millions) June 30, July 2, Percent June 30, July 2, Percent Change Worldwide 294 386 (23.7) 639 809 (21.0) Oncology U.S. 2,636 2,069 27.4 5,019 3,958 26.8 International 2,455 2,329 5.4 4,885 4,552 7.3 Worldwide 5,090 4,398 15.7 9,904 8,510 16.4 CARVYKTI U.S. 167 114 46.5 307 184 66.8 International 20 3 * 36 5 * Worldwide 186 117 59.8 343 189 81.5 DARZALEX U.S. 1,641 1,322 24.2 3,105 2,513 23.6 International 1,237 1,110 11.5 2,465 2,182 12.9 Worldwide 2,878 2,431 18.4 5,570 4,695 18.6 ERLEADA U.S. 318 241 32.2 603 490 23.0 International 418 326 28.0 822 619 32.8 Worldwide 736 567 29.8 1,425 1,109 28.4 IMBRUVICA U.S. 246 262 (6.4) 511 532 (3.9) International 525 579 (9.4) 1,043 1,136 (8.3) Worldwide 770 841 (8.5) 1,554 1,668 (6.9) TECVAYLI U.S. 104 82 27.5 205 139 47.7 International 30 12 * 63 18 * Worldwide 135 94 42.9 268 157 70.2 ZYTIGA / abiraterone acetate U.S. 11 9 21.6 20 25 (19.7) International 154 218 (29.6) 326 447 (27.2) Worldwide 165 227 (27.7) 346 472 (26.8) OTHER ONCOLOGY U.S. 148 40 * 267 75 * International 71 80 (10.4) 131 144 (8.5) Worldwide 221 120 84.2 399 219 82.4 Pulmonary Hypertension U.S. 743 684 8.7 1,509 1,284 17.5 International 296 289 2.6 579 561 3.4 Worldwide 1,039 972 6.9 2,088 1,844 13.2 OPSUMIT U.S. 373 328 13.7 729 601 21.3 International 170 179 (5.0) 339 346 (2.2) Worldwide 544 507 7.1 1,068 947 12.7 UPTRAVI Fiscal Second Quarter Ended Fiscal Six Months Ended (Dollars in Millions) June 30, July 2, Percent June 30, July 2, Percent Change U.S. 349 338 3.3 741 642 15.5 International 76 61 24.6 152 119 27.6 Worldwide 426 399 6.6 894 761 17.4 OTHER PULMONARY HYPERTENSION U.S. 20 18 18.8 38 41 (6.1) International 50 48 3.1 89 95 (6.7) Worldwide 71 66 7.2 127 136 (6.5) Cardiovascular / Metabolism / Other U.S. 717 776 (7.7) 1,348 1,491 (9.6) International 176 174 0.6 373 386 (3.6) Worldwide 892 950 (6.2) 1,721 1,877 (8.3) XARELTO U.S. 587 637 (7.9) 1,105 1,215 (9.1) International — — — — — — Worldwide 587 637 (7.9) 1,105 1,215 (9.1) OTHER U.S. 129 138 (6.4) 243 275 (11.8) International 176 174 0.6 373 386 (3.6) Worldwide 305 313 (2.5) 616 662 (7.0) TOTAL INNOVATIVE MEDICINE U.S. 8,510 7,818 8.9 16,122 14,841 8.6 International 5,980 5,913 1.1 11,930 12,303 (3.0) Worldwide 14,490 13,731 5.5 28,052 27,144 3.3 MEDTECH Cardiovascular (1) U.S. 1,119 908 23.3 2,144 1,771 21.1 International 753 712 5.7 1,534 1,352 13.4 Worldwide 1,873 1,620 15.6 3,679 3,123 17.8 ELECTROPHYSIOLOGY U.S. 705 609 15.7 1,397 1,180 18.4 International 618 587 5.4 1,270 1,109 14.6 Worldwide 1,323 1,196 10.6 2,667 2,288 16.5 ABIOMED U.S. 309 272 13.2 612 536 14.1 International 72 59 20.7 139 119 16.5 Worldwide 379 331 14.5 750 655 14.5 SHOCKWAVE (2) U.S. 77 — * 77 — * International 0 — — 0 — — Worldwide 77 — * 77 — * OTHER CARDIOVASCULAR (1) U.S. 29 27 12.5 59 55 7.7 Fiscal Second Quarter Ended Fiscal Six Months Ended (Dollars in Millions) June 30, July 2, Percent June 30, July 2, Percent Change International 64 67 (4.5) 126 125 0.8 Worldwide 93 93 0.3 185 180 2.9 Orthopaedics U.S. 1,422 1,388 2.5 2,870 2,751 4.3 International 890 878 1.4 1,782 1,759 1.3 Worldwide 2,312 2,265 2.1 4,652 4,510 3.2 HIPS U.S. 265 250 5.8 535 491 8.9 International 152 147 3.4 304 296 2.6 Worldwide 417 397 4.9 839 787 6.5 KNEES U.S. 230 221 4.2 472 447 5.5 International 163 142 14.9 323 284 13.6 Worldwide 394 363 8.4 795 731 8.7 TRAUMA U.S. 498 483 3.0 1,002 974 2.9 International 260 255 2.4 521 522 0.0 Worldwide 759 739 2.8 1,524 1,496 1.9 SPINE, SPORTS & OTHER U.S. 430 433 (0.8) 862 839 2.7 International 314 334 (6.1) 634 657 (3.5) Worldwide 743 766 (3.1) 1,495 1,495 0.0 Surgery U.S. 995 1,015 (2.0) 1,982 1,990 (0.4) International 1,493 1,580 (5.5) 2,922 3,039 (3.8) Worldwide 2,488 2,594 (4.1) 4,904 5,028 (2.5) ADVANCED U.S. 466 466 0.1 912 910 0.2 International 675 757 (10.8) 1,316 1,430 (8.0) Worldwide 1,141 1,222 (6.7) 2,228 2,340 (4.8) GENERAL U.S. 528 548 (3.7) 1,070 1,079 (0.9) International 818 823 (0.7) 1,606 1,608 (0.2) Worldwide 1,346 1,372 (1.9) 2,676 2,688 (0.5) Vision U.S. 523 529 (1.2) 1,070 1,087 (1.5) International 763 778 (2.0) 1,473 1,521 (3.2) Worldwide 1,285 1,308 (1.7) 2,543 2,608 (2.5) CONTACT LENSES / OTHER U.S. 409 409 0.2 847 853 (0.6) Fiscal Second Quarter Ended Fiscal Six Months Ended (Dollars in Millions) June 30, July 2, Percent June 30, July 2, Percent Change International 509 530 (4.0) 981 1,039 (5.6) Worldwide 918 939 (2.2) 1,828 1,892 (3.4) SURGICAL U.S. 113 120 (5.8) 223 234 (4.8) International 254 249 2.1 492 482 2.1 Worldwide 367 369 (0.5) 715 716 (0.1) TOTAL MEDTECH U.S. 4,059 3,839 5.7 8,067 7,598 6.2 International 3,898 3,949 (1.3) 7,711 7,671 0.5 Worldwide 7,957 7,788 2.2 15,778 15,269 3.3 WORLDWIDE U.S. 12,569 11,657 7.8 24,189 22,439 7.8 International 9,878 9,862 0.2 19,641 19,974 (1.7) Worldwide $22,447 21,519 4.3 % $43,830 42,413 3.3 % * Percentage greater than 100% or not meaningful (1) Previously referred to as Interventional (2) Acquired on May 31, 2024 |
Operating Profit by Segment of Business | Fiscal Second Quarter Ended Fiscal Six Months Ended (Dollars in Millions) June 30, July 2, Percent June 30, July 2, Percent Innovative Medicine (1) $5,459 4,812 13.4 % $10,428 9,214 13.2 % MedTech (2) 1,089 1,671 (34.8) 2,609 3,080 (15.3) Segment earnings before provision for taxes 6,548 6,483 1.0 13,037 12,294 6.0 Less: Expense not allocated to segments (3) 800 177 3,575 7,275 Worldwide income (loss) before tax $5,748 6,306 (8.8) % $9,462 5,019 88.5 % (1) Innovative Medicine includes: • Intangible amortization expense of $0.7 billion in both the fiscal second quarter of 2024 and 2023. Intangible amortization expense of $1.4 billion and $1.5 billion in the fiscal six months of 2024 and 2023, respectively. • One-time COVID-19 Vaccine related exit costs of $0.1 billion in both the fiscal second quarter and fiscal six months of 2024. One-time COVID-19 Vaccine related exit costs of $0.2 billion and $0.6 billion in the fiscal second quarter and fiscal six months of 2023, respectively. • Restructuring income of $0.1 billion in the fiscal second quarter of 2024 and a restructuring related charge of $0.1 billion in the fiscal six months of 2024. A restructuring related charge of $0.1 billion and $0.3 billion in the fiscal second quarter and fiscal six months of 2023, respectively. Refer to Note 12 for additional details. • An In-process research and development impairment of $0.2 billion in the fiscal second quarter and fiscal six months of 2024 associated with the M710 (biosimilar) asset acquired from Momenta in 2020. (2) MedTech includes: • Intangible amortization expense of $0.4 billion in both the fiscal second quarter of 2024 and 2023. Intangible amortization expense of $0.8 billion in both the fiscal six months of 2024 and 2023. • Favorable intellectual property litigation settlements of $0.3 billion in both the fiscal second quarter and fiscal six months of 2023 • Acquisition and integration related expense of $0.6 billion and $0.6 billion, primarily driven by the Shockwave acquisition, in the fiscal second quarter and fiscal six months of 2024, respectively. Acquisition and integration related expense of $0.1 billion in the fiscal six months of 2023. • A gain of $0.2 billion related to the Acclarent divestiture recorded in Other (income) expense in the fiscal second quarter and fiscal six months of 2024 • Restructuring related charge of $0.1 billion in the fiscal second quarter and fiscal six months of 2024 (3 ) Amounts not allocated to segments include interest (income)/expense and general corporate (income)/expense. The fiscal second quarters of 2024 and 2023 include charges for talc matters of $0.3 billion and $0.2 billion, respectively. The fiscal six months of 2024 and 2023 include charges for talc matters of $3.0 billion and $7.1 billion, respectively (See Note 11, Legal Proceedings, for additional details). The fiscal second quarter and six months of 2024 includes a loss of approximately $0.4 billion related to the debt to equity exchange of the Company's remaining shares of Kenvue Common Stock |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | Fiscal Second Quarter Ended Fiscal Six Months Ended (Dollars in Millions) June 30, 2024 July 2, 2023 Percent June 30, 2024 July 2, 2023 Percent Change United States $12,569 11,657 7.8 % $24,189 22,439 7.8 % Europe 5,214 5,131 1.6 10,377 10,721 (3.2) Western Hemisphere, excluding U.S. 1,212 1,136 6.7 2,406 2,212 8.8 Asia-Pacific, Africa 3,452 3,595 (4.0) 6,858 7,041 (2.6) Total $22,447 21,519 4.3 % $43,830 42,413 3.3 % |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Business Combinations [Abstract] | |
Schedule of Preliminary Amounts Recognized for Assets Acquired and Liabilities Assumed | Details of the fair value amounts recognized for assets acquired and liabilities assumed as of the acquisition date: (Dollars in Billions) Assets acquired: Cash $1.1 Goodwill 7.5 Amortizable intangibles 5.3 IPR&D 0.6 Inventory 0.5 Other assets 0.5 Total assets acquired $15.5 Liabilities assumed: Deferred taxes $1.5 Notes payable* 1.0 Accrued liabilities** 0.4 Total liabilities assumed $2.9 Net assets acquired $12.6 Net assets acquired as of May 31, 2024 $12.6 Less: Cash acquired 1.1 Equity awards settled 0.6 Settlement of Note payable* 1.0 Total enterprise value as of June 30, 2024 $13.1 • Represents the convertible debt which was subsequently paid in the fiscal second quarter of 2024. ** Includes $0.2 billion of equity awards |
Legal Proceedings (Tables)
Legal Proceedings (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2024: Product or product category Number of plaintiffs Body powders containing talc, primarily JOHNSON’S Baby Powder 62,370 DePuy ASR XL Acetabular System and DePuy ASR Hip Resurfacing System 160 PINNACLE Acetabular Cup System 910 Pelvic meshes 6,230 ETHICON PHYSIOMESH Flexible Composite Mesh 170 RISPERDAL 20 ELMIRON 2,170 |
Kenvue Separation (Tables)
Kenvue Separation (Tables) | 6 Months Ended |
Jun. 30, 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 Second Quarter Ended Fiscal Six Months Ended (Dollars in Millions) July 2, 2023 July 2, 2023 Sales to customers $4,011 $7,863 Cost of products sold 1,750 3,458 Gross profit 2,261 4,405 Selling, marketing and administrative expenses 1,269 2,501 Research and development expense 126 234 Interest Income (42) (79) Interest expense, net of portion capitalized 128 131 Other (income) expense, net 324 612 Earnings from Discontinued Operations Before Provision for Taxes on Income 456 1,006 Provision for taxes on income 688 815 Net (loss)/earnings from Discontinued Operations $(232) $191 The following table presents depreciation, amortization and capital expenditures of the discontinued operations related to Kenvue: Fiscal Second Quarter Ended Fiscal Six Months Ended (Dollars in Millions) July 2, 2023 July 2, 2023 Depreciation and Amortization $149 $302 Capital expenditures $92 $139 |
Restructuring (Tables)
Restructuring (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve | The following table summarizes the restructuring (income) expenses for 2024: (Pre-tax Dollars in Millions) Fiscal Second Quarter Ended Fiscal Six Months Ended Innovative Medicine Segment (1) $(63) 81 MedTech Segment (2) 52 79 Total Programs $(11) 160 (1) Included in Restructuring on the Consolidated Statement of Earnings (2) The fiscal second quarter of 2024 included $50 million in Restructuring and $2 million in Cost of products sold on the Consolidated Statement of Earnings. The fiscal six months of 2024 included $70 million in Restructuring and $9 million in Cost of products sold on the Consolidated Statement of Earnings. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | Jun. 30, 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 | Jun. 30, 2024 | Dec. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 2,407 | $ 2,355 |
Goods in process | 2,556 | 1,952 |
Finished goods | 7,206 | 6,874 |
Total inventories | $ 12,169 | $ 11,181 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Intangible assets with indefinite lives: | ||
Total intangible assets with indefinite lives | $ 13,964 | $ 10,929 |
Total intangible assets — net | 39,725 | 34,175 |
Trademarks | ||
Intangible assets with indefinite lives: | ||
Total intangible assets with indefinite lives | 1,655 | 1,714 |
Purchased In-Process Research And Development | ||
Intangible assets with indefinite lives: | ||
Total intangible assets with indefinite lives | 12,309 | 9,215 |
Patents And Trademarks | ||
Intangible assets with definite lives: | ||
Finite-lived intangible assets, gross | 43,438 | 40,417 |
Less accumulated amortization | (24,835) | (24,808) |
Finite-lived intangible assets, net | 18,603 | 15,609 |
Customer relationships and other intangible assets | ||
Intangible assets with definite lives: | ||
Finite-lived intangible assets, gross | 20,176 | 20,322 |
Less accumulated amortization | (13,018) | (12,685) |
Finite-lived intangible assets, net | $ 7,158 | $ 7,637 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill - Goodwill By Segment (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Goodwill [Roll Forward] | |
Goodwill Beginning of Period | $ 36,558 |
Goodwill, related to acquisitions | 8,057 |
Goodwill, related to divestitures | (56) |
Currency translation/Other | (309) |
Goodwill End of Period | 44,250 |
Innovative Medicine | |
Goodwill [Roll Forward] | |
Goodwill Beginning of Period | 10,407 |
Goodwill, related to acquisitions | 563 |
Goodwill, related to divestitures | 0 |
Currency translation/Other | (202) |
Goodwill End of Period | 10,768 |
MedTech | |
Goodwill [Roll Forward] | |
Goodwill Beginning of Period | 26,151 |
Goodwill, related to acquisitions | 7,494 |
Goodwill, related to divestitures | (56) |
Currency translation/Other | (107) |
Goodwill End of Period | $ 33,482 |
Intangible Assets and Goodwil_4
Intangible Assets and Goodwill - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense of amortizable intangible assets | $ 1,100 | $ 1,100 | $ 2,200 | $ 2,200 |
Patents And Trademarks | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Useful life (in years) | 12 years | 12 years | ||
Customer relationships and other intangible assets | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Useful life (in years) | 18 years | 18 years |
Intangible Assets and Goodwil_5
Intangible Assets and Goodwill - Intangible Asset Amortization Expense (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2024 | $ 4,500 |
2025 | 3,900 |
2026 | 3,300 |
2027 | 2,700 |
2028 | $ 2,000 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||
May 17, 2024 | May 15, 2024 | Jun. 30, 2024 | Dec. 31, 2023 | |
Derivative [Line Items] | ||||
Accumulated other comprehensive income on derivatives, after tax | $ 899 | |||
Hedging exposure | 18 months | |||
Commercial paper | $ 3,600 | |||
Proceeds from issuance of commercial paper | $ 3,600 | |||
Debt for equity exchange, shares exchanged (in shares) | 182,329,550 | |||
Debt for equity exchange, loss on shares exchanged | $ 400 | |||
Weighted average interest rate on non-current debt | 3.28% | |||
Excess of carrying value over fair value of debt | $ 1,000 | |||
Current Debt | $ 9,855 | 3,451 | ||
Commercial Paper | ||||
Derivative [Line Items] | ||||
Current Debt | $ 8,500 | |||
Weighted average interest rate | 5.28% | |||
Term | 1 month | |||
Forward foreign exchange contracts | ||||
Derivative [Line Items] | ||||
Collateral already posted, aggregate fair value | $ 2,300 | |||
Derivative, notional amount | 44,500 | 42,900 | ||
Cross currency interest rate swaps | ||||
Derivative [Line Items] | ||||
Derivative, notional amount | 41,000 | 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 | 6 Months Ended | ||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | |
Other (income) expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) reclassified from AOCI into income | $ 0 | $ 0 | $ 0 | $ 0 |
Cross currency interest rate swaps | Other (income) expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) reclassified from AOCI into income | 0 | 0 | 0 | 0 |
Fair Value Hedging | Interest Rate Swap | Sales to customers | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing | 0 | 0 | 0 | 0 |
Amount of gain or (loss) recognized in AOCI | 0 | 0 | 0 | 0 |
Fair Value Hedging | Interest Rate Swap | Cost of products sold | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing | 0 | 0 | 0 | 0 |
Amount of gain or (loss) recognized in AOCI | 0 | 0 | 0 | 0 |
Fair Value Hedging | Interest Rate Swap | Research and Development Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing | 0 | 0 | 0 | 0 |
Amount of gain or (loss) recognized in AOCI | 0 | 0 | 0 | 0 |
Fair Value Hedging | Interest Rate Swap | 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 | (53) | (175) | (45) | (6) |
Amount of gain or (loss) recognized in AOCI | 53 | 175 | 45 | 6 |
Fair Value Hedging | Interest Rate Swap | Other (income) expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing | 0 | 0 | 0 | 0 |
Amount of gain or (loss) recognized in AOCI | 0 | 0 | 0 | 0 |
Fair Value Hedging | 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 | 67 | 67 | ||
Amount of gain or (loss) recognized in AOCI | 67 | 67 | ||
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 | ||
Net Investment Hedging | Net Investment Hedging | Sales to customers | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing | 0 | 0 | ||
Amount of gain or (loss) recognized in AOCI | 0 | 0 | ||
Net Investment Hedging | Net Investment Hedging | Cost of products sold | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing | 0 | 0 | ||
Amount of gain or (loss) recognized in AOCI | 0 | 0 | ||
Net Investment Hedging | Net Investment Hedging | Research and Development Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in income on derivative amount excluded from effectiveness testing | 0 | 0 | ||
Amount of gain or (loss) recognized in AOCI | 0 | 0 | ||
Net Investment Hedging | Net Investment Hedging | 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 | 33 | 33 | ||
Amount of gain or (loss) recognized in AOCI | 33 | 33 | ||
Net Investment Hedging | Net Investment Hedging | 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 | 2 | (14) | (1) | 10 |
Amount of gain or (loss) reclassified from AOCI into income | (1) | (15) | 0 | (3) |
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 | 66 | 251 | 47 | 396 |
Amount of gain or (loss) reclassified from AOCI into income | 94 | 56 | 259 | (90) |
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 | 11 | 7 | 33 | (29) |
Amount of gain or (loss) reclassified from AOCI into income | 8 | (12) | 12 | (25) |
Cash Flow Hedging | Forward foreign exchange contracts | Interest (income)/Interest expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in AOCI | 0 | 0 | 0 | 0 |
Amount of gain or (loss) reclassified from AOCI into income | 0 | 0 | 0 | 0 |
Cash Flow Hedging | Forward foreign exchange contracts | Other (income) expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in AOCI | 1 | 18 | 5 | 4 |
Amount of gain or (loss) reclassified from AOCI into income | 3 | 3 | 1 | 5 |
Cash Flow Hedging | Cross currency interest rate swaps | Sales to customers | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in AOCI | 0 | 0 | 0 | 0 |
Amount of gain or (loss) reclassified from AOCI into income | 0 | 0 | 0 | 0 |
Cash Flow Hedging | Cross currency interest rate swaps | Cost of products sold | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in AOCI | 0 | 0 | 0 | 0 |
Amount of gain or (loss) reclassified from AOCI into income | 0 | 0 | 0 | 0 |
Cash Flow Hedging | Cross currency interest rate swaps | Research and Development Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in AOCI | 0 | 0 | 0 | 0 |
Amount of gain or (loss) reclassified from AOCI into income | 0 | 0 | 0 | 0 |
Cash Flow Hedging | Cross currency interest rate swaps | Interest (income)/Interest expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in AOCI | (38) | (432) | (243) | (15) |
Amount of gain or (loss) reclassified from AOCI into income | 42 | 74 | 91 | 182 |
Cash Flow Hedging | Cross currency interest rate swaps | Other (income) expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in AOCI | 0 | 0 | 0 | 0 |
Amount of gain or (loss) reclassified from AOCI into income | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value Measurements - Deriv
Fair Value Measurements - Derivatives, Balance Sheet Location (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Derivative [Line Items] | ||
Carrying Amount of the Hedged Liability | $ 4,405 | $ 6,037 |
Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Carrying Amount of the Hedged Liability | 8,812 | 8,862 |
Cumulative Amount of Fair Value Hedging Gain/ (Loss) Included in the Carrying Amount of the Hedged Liability | $ (1,274) | $ (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 | 6 Months Ended | ||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | |
Not Designated as Hedging Instrument | Forward foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain/(Loss) Recognized In Income on Derivative | $ 20 | $ 33 | $ 45 | $ 2 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Effect of Net Investment Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain/(Loss) Recognized In Accumulated OCI | $ 46 | $ 11 | $ 130 | $ (66) |
Other Income Expense Net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) reclassified from AOCI into income | 0 | 0 | 0 | 0 |
Cross Currency Interest Rate Contract | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain/(Loss) Recognized In Accumulated OCI | 92 | (24) | 820 | 666 |
Cross Currency Interest Rate Contract | Other Income Expense Net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) reclassified from AOCI into income | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Activity Related to Equity Investments (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Aug. 23, 2023 | Jun. 30, 2024 | Dec. 31, 2023 | |
Equity Investment [Roll Forward] | |||
Non Current Other Assets | $ 10,544 | $ 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 | (4) | ||
Sales/ Purchases/Other | (3,999) | ||
Carrying value, end of period | 470 | ||
Non Current Other Assets | 470 | ||
Equity Securities | Equity Investments without readily determinable value | |||
Equity Investment [Roll Forward] | |||
Carrying value, beginning of period | 696 | ||
Equity, Fair Value Adjustment | (15) | ||
Sales/ Purchases/Other | (8) | ||
Carrying value, end of period | 673 | ||
Non Current Other Assets | $ 673 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities at Fair Value (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2024 | Jul. 02, 2023 | Dec. 31, 2023 | |
Financial assets and liabilities at fair value | |||
Derivatives designated as hedging instruments : Assets | $ 1,915 | ||
Derivatives designated as hedging instruments : Liabilities | 4,386 | ||
Available-for-sale Securities, Equity Securities | 470 | $ 4,473 | |
Available-for-sale Securities | 6,840 | 8,874 | |
Contingent consideration | 1,248 | 1,092 | |
Total Gross Assets | 1,942 | 1,591 | |
Credit Support Agreement (CSA) | (1,911) | (1,575) | |
Total Net Asset | 31 | 16 | |
Total Gross Liabilities | 4,405 | 6,037 | |
Credit Support Agreement (CSA) | (4,229) | (5,604) | |
Total Net Liabilities | 176 | 433 | |
Beginning Balance | 1,092 | $ 1,120 | |
Changes in estimated fair value(6) | 44 | 25 | |
Additions | 112 | 0 | |
Payments | 0 | (3) | |
Ending Balance | 1,248 | $ 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 | 470 | 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 | 1,915 | 1,527 | |
Derivatives designated as hedging instruments : Liabilities | 4,386 | 5,962 | |
Available-for-sale Securities, Equity Securities | 0 | ||
Available-for-sale Securities | 6,840 | ||
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 | 1,248 | 1,092 | |
Interest Rate Contract | |||
Financial assets and liabilities at fair value | |||
Derivatives designated as hedging instruments : Assets | 1,392 | ||
Derivatives designated as hedging instruments : Liabilities | 3,874 | ||
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 | 1,392 | 988 | |
Derivatives designated as hedging instruments : Liabilities | 3,874 | 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 | 523 | ||
Derivatives designated as hedging instruments : Liabilities | 512 | ||
Derivatives not designated as hedging instruments : Assets | 27 | ||
Derivatives not designated as hedging instruments : Liabilities | 19 | ||
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 | 523 | 539 | |
Derivatives designated as hedging instruments : Liabilities | 512 | 624 | |
Derivatives not designated as hedging instruments : Assets | 27 | 64 | |
Derivatives not designated as hedging instruments : Liabilities | 19 | $ 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 | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Securities, Available-for-sale [Abstract] | ||
Available-for-sale Securities - Estimated Fair Value | $ 6,840 | $ 8,874 |
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Cash and Cash Equivalents | 24,878 | 21,859 |
Marketable securities | 597 | $ 1,068 |
Total cash, cash equivalents and current marketable securities, Carrying Amount | 25,475 | |
Total cash, cash equivalents and current marketable securities, Unrealized Gain | 0 | |
Total cash, cash equivalents and current marketable securities, Estimated Fair Value | 25,475 | |
Held-to-maturity Securities | ||
Debt Securities, Held-to-maturity [Abstract] | ||
Held-to-maturity Securities - Carrying Amount | 18,635 | |
Held-to-maturity Securities, Unrecognized Gain | 0 | |
Held-to-maturity Securities - Estimated Fair Value | 18,635 | |
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Cash and Cash Equivalents | 18,635 | |
Marketable securities | 0 | |
Held-to-maturity Securities | Cash | ||
Debt Securities, Held-to-maturity [Abstract] | ||
Held-to-maturity Securities - Carrying Amount | 4,247 | |
Held-to-maturity Securities, Unrecognized Gain | 0 | |
Held-to-maturity Securities - Estimated Fair Value | 4,247 | |
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Cash and Cash Equivalents | 4,247 | |
Marketable securities | 0 | |
Held-to-maturity Securities | U.S. Gov't securities | ||
Debt Securities, Held-to-maturity [Abstract] | ||
Held-to-maturity Securities - Carrying Amount | 0 | |
Held-to-maturity Securities, Unrecognized Gain | 0 | |
Held-to-maturity Securities - Estimated Fair Value | 0 | |
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Cash and Cash Equivalents | 0 | |
Marketable securities | 0 | |
Held-to-maturity Securities | Non-U.S. sovereign securities | ||
Debt Securities, Held-to-maturity [Abstract] | ||
Held-to-maturity Securities - Carrying Amount | 150 | |
Held-to-maturity Securities, Unrecognized Gain | 0 | |
Held-to-maturity Securities - Estimated Fair Value | 150 | |
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Cash and Cash Equivalents | 150 | |
Marketable securities | 0 | |
Held-to-maturity Securities | U.S. reverse repurchase agreements | ||
Debt Securities, Held-to-maturity [Abstract] | ||
Held-to-maturity Securities - Carrying Amount | 8,496 | |
Held-to-maturity Securities, Unrecognized Gain | 0 | |
Held-to-maturity Securities - Estimated Fair Value | 8,496 | |
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Cash and Cash Equivalents | 8,496 | |
Marketable securities | 0 | |
Held-to-maturity Securities | Corporate debt securities(1) | ||
Debt Securities, Held-to-maturity [Abstract] | ||
Held-to-maturity Securities - Carrying Amount | 0 | |
Held-to-maturity Securities, Unrecognized Gain | 0 | |
Held-to-maturity Securities - Estimated Fair Value | 0 | |
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Cash and Cash Equivalents | 0 | |
Marketable securities | 0 | |
Held-to-maturity Securities | Money market funds | ||
Debt Securities, Held-to-maturity [Abstract] | ||
Held-to-maturity Securities - Carrying Amount | 4,883 | |
Held-to-maturity Securities, Unrecognized Gain | 0 | |
Held-to-maturity Securities - Estimated Fair Value | 4,883 | |
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Cash and Cash Equivalents | 4,883 | |
Marketable securities | 0 | |
Held-to-maturity Securities | Time deposits(1) | ||
Debt Securities, Held-to-maturity [Abstract] | ||
Held-to-maturity Securities - Carrying Amount | 859 | |
Held-to-maturity Securities, Unrecognized Gain | 0 | |
Held-to-maturity Securities - Estimated Fair Value | 859 | |
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Cash and Cash Equivalents | 859 | |
Marketable securities | 0 | |
Available-for-sale Securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Available-for-sale Securities - Carrying Amount | 6,840 | |
Available-for-sale Securities, Unrecognized Gain | 0 | |
Available-for-sale Securities - Estimated Fair Value | 6,840 | |
Debt Securities, Available-for-sale and Held-to-maturity [Abstract] | ||
Cash and Cash Equivalents | 6,243 | |
Marketable securities | 597 | |
Available-for-sale Securities | U.S. Gov’t securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Available-for-sale Securities - Carrying Amount | 6,585 | |
Available-for-sale Securities - Estimated Fair Value | 6,585 | |
Available-for-sale Securities | U.S. Gov’t Agencies | ||
Debt Securities, Available-for-sale [Abstract] | ||
Available-for-sale Securities - Carrying Amount | 11 | |
Available-for-sale Securities - Estimated Fair Value | 11 | |
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 | 242 | |
Available-for-sale Securities - Estimated Fair Value | 242 | |
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 | 61 | |
Marketable securities | 181 | |
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 | 6,182 | |
Marketable securities | 403 | |
Available-for-sale Securities | U.S. Gov’t Agencies | ||
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 | $ 11 |
Fair Value Measurements - Sch_3
Fair Value Measurements - Schedule of Available for Sale Securities Maturities (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Cost Basis | |
Due within one year | $ 6,821 |
Due after one year through five years | 19 |
Due after five years through ten years | 0 |
Total debt securities | 6,840 |
Fair Value | |
Due within one year | 6,821 |
Due after one year through five years | 19 |
Due after five years through ten years | 0 |
Total debt securities | $ 6,840 |
Fair Value Measurements - Fin_2
Fair Value Measurements - Financial Liabilities not Measured at Fair Value (Details) | Jun. 30, 2024 USD ($) | Jun. 30, 2024 EUR (€) | Dec. 31, 2023 USD ($) |
Financial Liabilities | |||
Current Debt | $ 9,855,000,000 | $ 3,451,000,000 | |
Non-Current Debt | |||
Non-Current Debt | 31,636,000,000 | $ 25,881,000,000 | |
Unsecured Notes | |||
Non-Current Debt | |||
Debt instrument, face amount | 6,700,000,000 | ||
Carrying Amount | |||
Financial Liabilities | |||
Current Debt | 9,855,000,000 | ||
Non-Current Debt | |||
Non-Current Debt | 31,636,000,000 | ||
Estimated Fair Value | |||
Financial Liabilities | |||
Current Debt | 9,835,000,000 | ||
Non-Current Debt | |||
Non-Current Debt | $ 29,716,000,000 | ||
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 | $ 973,000,000 | ||
0.55% Notes due 2025 | Estimated Fair Value | |||
Non-Current Debt | |||
Non-Current Debt | $ 950,000,000 | ||
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 | $ 1,921,000,000 | ||
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 | $ 902,000,000 | ||
2.95% Notes due 2027 | Estimated Fair Value | |||
Non-Current Debt | |||
Non-Current Debt | $ 955,000,000 | ||
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 | $ 1,430,000,000 | ||
0.95% Notes due 2027 | Estimated Fair Value | |||
Non-Current Debt | |||
Non-Current Debt | $ 1,334,000,000 | ||
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 | $ 1,418,000,000 | ||
1.150% Notes due 2028 (750MM Euro 1.0721) | |||
Non-Current Debt | |||
Stated interest rate (as a percent) | 1.15% | 1.15% | |
Debt instrument, face amount | € | € 750,000,000 | ||
Foreign exchange rate | 1.0721 | 1.0721 | |
1.150% Notes due 2028 (750MM Euro 1.0721) | Carrying Amount | |||
Non-Current Debt | |||
Non-Current Debt | $ 801,000,000 | ||
1.150% Notes due 2028 (750MM Euro 1.0721) | Estimated Fair Value | |||
Non-Current Debt | |||
Non-Current Debt | $ 744,000,000 | ||
4.80% Notes due 2029 | |||
Non-Current Debt | |||
Stated interest rate (as a percent) | 4.80% | 4.80% | |
4.80% Notes due 2029 | Carrying Amount | |||
Non-Current Debt | |||
Non-Current Debt | $ 1,145,000,000 | ||
4.80% Notes due 2029 | Estimated Fair Value | |||
Non-Current Debt | |||
Non-Current Debt | $ 1,161,000,000 | ||
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 | $ 332,000,000 | ||
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 | $ 1,626,000,000 | ||
1.30% Notes due 2030 | Estimated Fair Value | |||
Non-Current Debt | |||
Non-Current Debt | $ 1,445,000,000 | ||
4.90% Notes due 2031 | |||
Non-Current Debt | |||
Stated interest rate (as a percent) | 4.90% | 4.90% | |
4.90% Notes due 2031 | Carrying Amount | |||
Non-Current Debt | |||
Non-Current Debt | $ 1,145,000,000 | ||
4.90% Notes due 2031 | Estimated Fair Value | |||
Non-Current Debt | |||
Non-Current Debt | $ 1,161,000,000 | ||
3.20% Notes due 2032 (700MM Euro 1.0721) | |||
Non-Current Debt | |||
Stated interest rate (as a percent) | 3.20% | 3.20% | |
Debt instrument, face amount | $ 700,000,000 | ||
Foreign exchange rate | 1.0721 | 1.0721 | |
3.20% Notes due 2032 (700MM Euro 1.0721) | Carrying Amount | |||
Non-Current Debt | |||
Non-Current Debt | $ 747,000,000 | ||
3.20% Notes due 2032 (700MM Euro 1.0721) | Estimated Fair Value | |||
Non-Current Debt | |||
Non-Current Debt | $ 750,000,000 | ||
4.95% Notes due 2033 | |||
Non-Current Debt | |||
Stated interest rate (as a percent) | 4.95% | 4.95% | |
4.95% Notes due 2033 | Carrying Amount | |||
Non-Current Debt | |||
Non-Current Debt | $ 499,000,000 | ||
4.95% Notes due 2033 | Estimated Fair Value | |||
Non-Current Debt | |||
Non-Current Debt | $ 513,000,000 | ||
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 | $ 835,000,000 | ||
4.95% Notes due 2034 | |||
Non-Current Debt | |||
Stated interest rate (as a percent) | 4.95% | 4.95% | |
4.95% Notes due 2034 | Carrying Amount | |||
Non-Current Debt | |||
Non-Current Debt | $ 846,000,000 | ||
4.95% Notes due 2034 | Estimated Fair Value | |||
Non-Current Debt | |||
Non-Current Debt | 860,000,000 | ||
1.650% Notes due 2035 (1.5B Euro 1.0721) | Carrying Amount | |||
Non-Current Debt | |||
Non-Current Debt | $ 1,597,000,000 | ||
Stated interest rate (as a percent) | 1.65% | 1.65% | |
Debt instrument, face amount | $ 1,500,000,000 | ||
Foreign exchange rate | 1.0721 | 1.0721 | |
1.650% Notes due 2035 (1.5B Euro 1.0721) | Estimated Fair Value | |||
Non-Current Debt | |||
Non-Current Debt | $ 1,384,000,000 | ||
3.35% Notes Due 2036 (800MM Euro 1.0721) | |||
Non-Current Debt | |||
Stated interest rate (as a percent) | 3.35% | 3.35% | |
Debt instrument, face amount | $ 800,000,000 | ||
Foreign exchange rate | 1.0721 | 1.0721 | |
3.35% Notes Due 2036 (800MM Euro 1.0721) | Carrying Amount | |||
Non-Current Debt | |||
Non-Current Debt | $ 852,000,000 | ||
3.35% Notes Due 2036 (800MM Euro 1.0721) | Estimated Fair Value | |||
Non-Current Debt | |||
Non-Current Debt | $ 853,000,000 | ||
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 | $ 855,000,000 | ||
3.587% Notes due 2036 | Estimated Fair Value | |||
Non-Current Debt | |||
Non-Current Debt | $ 876,000,000 | ||
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 | $ 1,089,000,000 | ||
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 | $ 1,346,000,000 | ||
3.625% Notes due 2037 | Estimated Fair Value | |||
Non-Current Debt | |||
Non-Current Debt | $ 1,310,000,000 | ||
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 | $ 839,000,000 | ||
5.85% Notes due 2038 | |||
Non-Current Debt | |||
Stated interest rate (as a percent) | 5.85% | 5.85% | |
5.85% Notes due 2038 | Carrying Amount | |||
Non-Current Debt | |||
Non-Current Debt | $ 697,000,000 | ||
5.85% Notes due 2038 | Estimated Fair Value | |||
Non-Current Debt | |||
Non-Current Debt | $ 756,000,000 | ||
4.50% Notes due 2040 | |||
Non-Current Debt | |||
Stated interest rate (as a percent) | 4.50% | 4.50% | |
4.50% Notes due 2040 | Carrying Amount | |||
Non-Current Debt | |||
Non-Current Debt | $ 541,000,000 | ||
4.50% Notes due 2040 | Estimated Fair Value | |||
Non-Current Debt | |||
Non-Current Debt | $ 521,000,000 | ||
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 | $ 836,000,000 | ||
2.10% Notes due 2040 | Estimated Fair Value | |||
Non-Current Debt | |||
Non-Current Debt | $ 670,000,000 | ||
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 | $ 293,000,000 | ||
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 | $ 470,000,000 | ||
3.55% Notes Due 2044 (1.0B Euro 1.0721) | |||
Non-Current Debt | |||
Stated interest rate (as a percent) | 3.55% | 3.55% | |
Debt instrument, face amount | $ 1,000,000,000 | ||
Foreign exchange rate | 1.0721 | 1.0721 | |
3.55% Notes Due 2044 (1.0B Euro 1.0721) | Carrying Amount | |||
Non-Current Debt | |||
Non-Current Debt | $ 1,062,000,000 | ||
3.55% Notes Due 2044 (1.0B Euro 1.0721) | Estimated Fair Value | |||
Non-Current Debt | |||
Non-Current Debt | $ 1,062,000,000 | ||
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 | $ 1,609,000,000 | ||
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 | $ 816,000,000 | ||
3.75% Notes due 2047 | Estimated Fair Value | |||
Non-Current Debt | |||
Non-Current Debt | $ 805,000,000 | ||
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 | $ 579,000,000 | ||
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 | $ 807,000,000 | ||
2.25% Notes due 2050 | Estimated Fair Value | |||
Non-Current Debt | |||
Non-Current Debt | $ 593,000,000 | ||
5.25% Notes due 2054 | |||
Non-Current Debt | |||
Stated interest rate (as a percent) | 5.25% | 5.25% | |
5.25% Notes due 2054 | Carrying Amount | |||
Non-Current Debt | |||
Non-Current Debt | $ 843,000,000 | ||
5.25% Notes due 2054 | Estimated Fair Value | |||
Non-Current Debt | |||
Non-Current Debt | $ 854,000,000 | ||
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 | $ 1,055,000,000 | ||
2.45% Notes due 2060 | Estimated Fair Value | |||
Non-Current Debt | |||
Non-Current Debt | 707,000,000 | ||
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 Billions | 6 Months Ended | |
Jun. 30, 2024 | Jul. 02, 2023 | |
Income Tax Contingency | ||
Worldwide effective income tax rate (as a percent) | 16.10% | 2.70% |
Effective income tax rate reconciliation, tax settlement, percent | 23% | 23% |
Unrecognized tax benefits | $ 2.5 | |
Current unrecognized tax benefits and interest | 0.4 | |
Talc | Consumer | ||
Income Tax Contingency | ||
Litigation expense | $ 3 | $ 7 |
Pensions and Other Benefit Pl_3
Pensions and Other Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | |
Retirement Plans | ||||
Components of net periodic benefit cost | ||||
Service cost | $ 222 | $ 215 | $ 446 | $ 425 |
Interest cost | 351 | 371 | 703 | 723 |
Expected return on plan assets | (639) | (694) | (1,281) | (1,362) |
Amortization of prior service cost/(credit) | (46) | (46) | (92) | (92) |
Recognized actuarial (gains)/losses | 44 | (50) | 87 | (100) |
Curtailments and settlements | (8) | 0 | (8) | 0 |
Net periodic benefit cost/(credit) | (76) | (204) | (145) | (406) |
Other Benefit Plans | ||||
Components of net periodic benefit cost | ||||
Service cost | 69 | 69 | 138 | 137 |
Interest cost | 52 | 55 | 104 | 109 |
Expected return on plan assets | (1) | (2) | (3) | (3) |
Amortization of prior service cost/(credit) | (1) | (1) | (1) | (1) |
Recognized actuarial (gains)/losses | 13 | 7 | 26 | 13 |
Curtailments and settlements | 0 | 0 | 0 | 0 |
Net periodic benefit cost/(credit) | $ 132 | $ 128 | $ 264 | $ 255 |
Pensions and Other Benefit Pl_4
Pensions and Other Benefit Plans (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
U.S. | |
Defined Benefit Plan Disclosure [Line Items] | |
Contribution to pension plans | $ 61 |
Foreign Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Contribution to pension plans | $ 7 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Beginning balance | $ 68,774 |
Net change | 1,274 |
Ending balance | 71,538 |
Foreign Currency Translation | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Beginning balance | (10,149) |
Net change | 1,734 |
Ending balance | (8,415) |
Gain/ (Loss) On Securities | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Beginning balance | (1) |
Net change | 1 |
Ending balance | 0 |
Employee Benefit Plans | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Beginning balance | (2,000) |
Net change | 61 |
Ending balance | (1,939) |
Gain/ (Loss) On Derivatives & Hedges | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Beginning balance | (377) |
Net change | (522) |
Ending balance | (899) |
Total Accumulated Other Comprehensive Income/(Loss) | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Beginning balance | (12,527) |
Ending balance | $ (11,253) |
Earnings Per Share (Details)
Earnings Per Share (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | |
Reconciliation of basic net earnings per share to diluted net earnings per share | ||||
Continuing operations - basic (in dollars per share) | $ 1.95 | $ 2.07 | $ 3.30 | $ 1.88 |
Discontinued operations - basic (in dollars per share) | 0 | (0.09) | 0 | 0.07 |
Total net earnings per share - basic (in dollars per share) | $ 1.95 | $ 1.98 | $ 3.30 | $ 1.95 |
Average shares outstanding — basic | 2,406,800,000 | 2,598,400,000 | 2,407,500,000 | 2,601,900,000 |
Potential shares exercisable under stock option plans | 62,600,000 | 95,200,000 | 79,300,000 | 96,900,000 |
Less: shares which could be repurchased under treasury stock method | (47,400,000) | (67,900,000) | (58,300,000) | (68,100,000) |
Average shares outstanding — diluted | 2,422,000,000 | 2,625,700,000 | 2,428,500,000 | 2,630,700,000 |
Continuing operations - diluted (in dollars per share) | $ 1.93 | $ 2.05 | $ 3.27 | $ 1.86 |
Discontinued operations - diluted (in dollars per share) | 0 | (0.09) | 0 | 0.07 |
Total net earnings per share - diluted (in dollars per share) | $ 1.93 | $ 1.96 | $ 3.27 | $ 1.93 |
Antidilutive securities excluded from computation of earnings per share, amount | 72.2 | 50.8 | 53.8 | 46.8 |
Segments of Business and Geog_3
Segments of Business and Geographic Areas - Narrative (Details) | 6 Months Ended |
Jun. 30, 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 | 6 Months Ended | ||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | |
Sales by segment of business | ||||
Sales to customers | $ 22,447 | $ 21,519 | $ 43,830 | $ 42,413 |
Percent Change (as a percent) | 4.30% | 3.30% | ||
U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 12,569 | 11,657 | $ 24,189 | 22,439 |
Percent Change (as a percent) | 7.80% | 7.80% | ||
International | ||||
Sales by segment of business | ||||
Sales to customers | $ 9,878 | 9,862 | $ 19,641 | 19,974 |
Percent Change (as a percent) | 0.20% | (1.70%) | ||
MEDTECH | ||||
Sales by segment of business | ||||
Sales to customers | $ 7,957 | 7,788 | $ 15,778 | 15,269 |
Percent Change (as a percent) | 2.20% | 3.30% | ||
MEDTECH | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 4,059 | 3,839 | $ 8,067 | 7,598 |
Percent Change (as a percent) | 5.70% | 6.20% | ||
MEDTECH | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 3,898 | 3,949 | $ 7,711 | 7,671 |
Percent Change (as a percent) | (1.30%) | 0.50% | ||
MEDTECH | Cardiovascular(1) | ||||
Sales by segment of business | ||||
Sales to customers | $ 1,873 | 1,620 | $ 3,679 | 3,123 |
Percent Change (as a percent) | 15.60% | 17.80% | ||
MEDTECH | Cardiovascular(1) | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 1,119 | 908 | $ 2,144 | 1,771 |
Percent Change (as a percent) | 23.30% | 21.10% | ||
MEDTECH | Cardiovascular(1) | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 753 | 712 | $ 1,534 | 1,352 |
Percent Change (as a percent) | 5.70% | 13.40% | ||
MEDTECH | ELECTROPHYSIOLOGY | ||||
Sales by segment of business | ||||
Sales to customers | $ 1,323 | 1,196 | $ 2,667 | 2,288 |
Percent Change (as a percent) | 10.60% | 16.50% | ||
MEDTECH | ELECTROPHYSIOLOGY | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 705 | 609 | $ 1,397 | 1,180 |
Percent Change (as a percent) | 15.70% | 18.40% | ||
MEDTECH | ELECTROPHYSIOLOGY | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 618 | 587 | $ 1,270 | 1,109 |
Percent Change (as a percent) | 5.40% | 14.60% | ||
MEDTECH | ABIOMED | ||||
Sales by segment of business | ||||
Sales to customers | $ 379 | 331 | $ 750 | 655 |
Percent Change (as a percent) | 14.50% | 14.50% | ||
MEDTECH | ABIOMED | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 309 | 272 | $ 612 | 536 |
Percent Change (as a percent) | 13.20% | 14.10% | ||
MEDTECH | ABIOMED | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 72 | 59 | $ 139 | 119 |
Percent Change (as a percent) | 20.70% | 16.50% | ||
MEDTECH | Shockwave | ||||
Sales by segment of business | ||||
Sales to customers | $ 77 | 0 | $ 77 | 0 |
MEDTECH | Shockwave | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | 77 | 0 | 77 | 0 |
MEDTECH | Shockwave | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 0 | 0 | $ 0 | 0 |
Percent Change (as a percent) | 0% | 0% | ||
MEDTECH | OTHER CARDIOVASCULAR(1) | ||||
Sales by segment of business | ||||
Sales to customers | $ 93 | 93 | $ 185 | 180 |
Percent Change (as a percent) | 0.30% | 2.90% | ||
MEDTECH | OTHER CARDIOVASCULAR(1) | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 29 | 27 | $ 59 | 55 |
Percent Change (as a percent) | 12.50% | 7.70% | ||
MEDTECH | OTHER CARDIOVASCULAR(1) | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 64 | 67 | $ 126 | 125 |
Percent Change (as a percent) | (4.50%) | 0.80% | ||
MEDTECH | Orthopaedics | ||||
Sales by segment of business | ||||
Sales to customers | $ 2,312 | 2,265 | $ 4,652 | 4,510 |
Percent Change (as a percent) | 2.10% | 3.20% | ||
MEDTECH | Orthopaedics | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 1,422 | 1,388 | $ 2,870 | 2,751 |
Percent Change (as a percent) | 2.50% | 4.30% | ||
MEDTECH | Orthopaedics | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 890 | 878 | $ 1,782 | 1,759 |
Percent Change (as a percent) | 1.40% | 1.30% | ||
MEDTECH | Orthopaedics | HIPS | ||||
Sales by segment of business | ||||
Sales to customers | $ 417 | 397 | $ 839 | 787 |
Percent Change (as a percent) | 4.90% | 6.50% | ||
MEDTECH | Orthopaedics | HIPS | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 265 | 250 | $ 535 | 491 |
Percent Change (as a percent) | 5.80% | 8.90% | ||
MEDTECH | Orthopaedics | HIPS | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 152 | 147 | $ 304 | 296 |
Percent Change (as a percent) | 3.40% | 2.60% | ||
MEDTECH | Orthopaedics | KNEES | ||||
Sales by segment of business | ||||
Sales to customers | $ 394 | 363 | $ 795 | 731 |
Percent Change (as a percent) | 8.40% | 8.70% | ||
MEDTECH | Orthopaedics | KNEES | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 230 | 221 | $ 472 | 447 |
Percent Change (as a percent) | 4.20% | 5.50% | ||
MEDTECH | Orthopaedics | KNEES | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 163 | 142 | $ 323 | 284 |
Percent Change (as a percent) | 14.90% | 13.60% | ||
MEDTECH | Orthopaedics | TRAUMA | ||||
Sales by segment of business | ||||
Sales to customers | $ 759 | 739 | $ 1,524 | 1,496 |
Percent Change (as a percent) | 2.80% | 1.90% | ||
MEDTECH | Orthopaedics | TRAUMA | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 498 | 483 | $ 1,002 | 974 |
Percent Change (as a percent) | 3% | 2.90% | ||
MEDTECH | Orthopaedics | TRAUMA | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 260 | 255 | $ 521 | 522 |
Percent Change (as a percent) | 2.40% | 0% | ||
MEDTECH | Orthopaedics | SPINE, SPORTS & OTHER | ||||
Sales by segment of business | ||||
Sales to customers | $ 743 | 766 | $ 1,495 | 1,495 |
Percent Change (as a percent) | (3.10%) | 0% | ||
MEDTECH | Orthopaedics | SPINE, SPORTS & OTHER | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 430 | 433 | $ 862 | 839 |
Percent Change (as a percent) | (0.80%) | 2.70% | ||
MEDTECH | Orthopaedics | SPINE, SPORTS & OTHER | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 314 | 334 | $ 634 | 657 |
Percent Change (as a percent) | (6.10%) | (3.50%) | ||
MEDTECH | Surgery | ||||
Sales by segment of business | ||||
Sales to customers | $ 2,488 | 2,594 | $ 4,904 | 5,028 |
Percent Change (as a percent) | (4.10%) | (2.50%) | ||
MEDTECH | Surgery | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 995 | 1,015 | $ 1,982 | 1,990 |
Percent Change (as a percent) | (2.00%) | (0.40%) | ||
MEDTECH | Surgery | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 1,493 | 1,580 | $ 2,922 | 3,039 |
Percent Change (as a percent) | (5.50%) | (3.80%) | ||
MEDTECH | Surgery | ADVANCED | ||||
Sales by segment of business | ||||
Sales to customers | $ 1,141 | 1,222 | $ 2,228 | 2,340 |
Percent Change (as a percent) | (6.70%) | (4.80%) | ||
MEDTECH | Surgery | ADVANCED | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 466 | 466 | $ 912 | 910 |
Percent Change (as a percent) | 0.10% | 0.20% | ||
MEDTECH | Surgery | ADVANCED | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 675 | 757 | $ 1,316 | 1,430 |
Percent Change (as a percent) | (10.80%) | (8.00%) | ||
MEDTECH | Surgery | GENERAL | ||||
Sales by segment of business | ||||
Sales to customers | $ 1,346 | 1,372 | $ 2,676 | 2,688 |
Percent Change (as a percent) | (1.90%) | (0.50%) | ||
MEDTECH | Surgery | GENERAL | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 528 | 548 | $ 1,070 | 1,079 |
Percent Change (as a percent) | (3.70%) | (0.90%) | ||
MEDTECH | Surgery | GENERAL | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 818 | 823 | $ 1,606 | 1,608 |
Percent Change (as a percent) | (0.70%) | (0.20%) | ||
MEDTECH | Vision | ||||
Sales by segment of business | ||||
Sales to customers | $ 1,285 | 1,308 | $ 2,543 | 2,608 |
Percent Change (as a percent) | (1.70%) | (2.50%) | ||
MEDTECH | Vision | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 523 | 529 | $ 1,070 | 1,087 |
Percent Change (as a percent) | (1.20%) | (1.50%) | ||
MEDTECH | Vision | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 763 | 778 | $ 1,473 | 1,521 |
Percent Change (as a percent) | (2.00%) | (3.20%) | ||
MEDTECH | Vision | CONTACT LENSES / OTHER | ||||
Sales by segment of business | ||||
Sales to customers | $ 918 | 939 | $ 1,828 | 1,892 |
Percent Change (as a percent) | (2.20%) | (3.40%) | ||
MEDTECH | Vision | CONTACT LENSES / OTHER | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 409 | 409 | $ 847 | 853 |
Percent Change (as a percent) | 0.20% | (0.60%) | ||
MEDTECH | Vision | CONTACT LENSES / OTHER | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 509 | 530 | $ 981 | 1,039 |
Percent Change (as a percent) | (4.00%) | (5.60%) | ||
MEDTECH | Vision | SURGICAL | ||||
Sales by segment of business | ||||
Sales to customers | $ 367 | 369 | $ 715 | 716 |
Percent Change (as a percent) | (0.50%) | (0.10%) | ||
MEDTECH | Vision | SURGICAL | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 113 | 120 | $ 223 | 234 |
Percent Change (as a percent) | (5.80%) | (4.80%) | ||
MEDTECH | Vision | SURGICAL | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 254 | 249 | $ 492 | 482 |
Percent Change (as a percent) | 2.10% | 2.10% | ||
Innovative Medicine | ||||
Sales by segment of business | ||||
Sales to customers | $ 14,490 | 13,731 | $ 28,052 | 27,144 |
Percent Change (as a percent) | 5.50% | 3.30% | ||
Innovative Medicine | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 8,510 | 7,818 | $ 16,122 | 14,841 |
Percent Change (as a percent) | 8.90% | 8.60% | ||
Innovative Medicine | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 5,980 | 5,913 | $ 11,930 | 12,303 |
Percent Change (as a percent) | 1.10% | (3.00%) | ||
Innovative Medicine | Immunology | ||||
Sales by segment of business | ||||
Sales to customers | $ 4,722 | 4,496 | $ 8,969 | 8,608 |
Percent Change (as a percent) | 5% | 4.20% | ||
Innovative Medicine | Immunology | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 2,978 | 2,865 | $ 5,431 | 5,313 |
Percent Change (as a percent) | 4% | 2.20% | ||
Innovative Medicine | Immunology | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 1,744 | 1,631 | $ 3,538 | 3,295 |
Percent Change (as a percent) | 6.90% | 7.40% | ||
Innovative Medicine | Immunology | REMICADE | ||||
Sales by segment of business | ||||
Sales to customers | $ 393 | 462 | $ 827 | 949 |
Percent Change (as a percent) | (14.90%) | (12.90%) | ||
Innovative Medicine | Immunology | REMICADE | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 231 | 277 | $ 497 | 553 |
Percent Change (as a percent) | (16.70%) | (10.10%) | ||
Innovative Medicine | Immunology | REMICADE | U.S. Exports | ||||
Sales by segment of business | ||||
Sales to customers | $ 35 | 33 | $ 62 | 74 |
Percent Change (as a percent) | 7.90% | (15.40%) | ||
Innovative Medicine | Immunology | REMICADE | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 127 | 152 | $ 268 | 322 |
Percent Change (as a percent) | (16.60%) | (16.90%) | ||
Innovative Medicine | Immunology | SIMPONI / SIMPONI ARIA | ||||
Sales by segment of business | ||||
Sales to customers | $ 537 | 529 | $ 1,091 | 1,066 |
Percent Change (as a percent) | 1.60% | 2.30% | ||
Innovative Medicine | Immunology | SIMPONI / SIMPONI ARIA | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 267 | 285 | $ 521 | 556 |
Percent Change (as a percent) | (6.30%) | (6.20%) | ||
Innovative Medicine | Immunology | SIMPONI / SIMPONI ARIA | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 270 | 244 | $ 569 | 510 |
Percent Change (as a percent) | 10.90% | 11.70% | ||
Innovative Medicine | Immunology | STELARA | ||||
Sales by segment of business | ||||
Sales to customers | $ 2,885 | 2,797 | $ 5,336 | 5,241 |
Percent Change (as a percent) | 3.10% | 1.80% | ||
Innovative Medicine | Immunology | STELARA | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 1,855 | 1,817 | $ 3,251 | 3,268 |
Percent Change (as a percent) | 2.10% | (0.50%) | ||
Innovative Medicine | Immunology | STELARA | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 1,030 | 981 | $ 2,085 | 1,974 |
Percent Change (as a percent) | 5% | 5.60% | ||
Innovative Medicine | Immunology | TREMFYA | ||||
Sales by segment of business | ||||
Sales to customers | $ 906 | 706 | $ 1,714 | 1,346 |
Percent Change (as a percent) | 28.30% | 27.30% | ||
Innovative Medicine | Immunology | TREMFYA | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 589 | 450 | $ 1,098 | 856 |
Percent Change (as a percent) | 30.80% | 28.20% | ||
Innovative Medicine | Immunology | TREMFYA | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 317 | 255 | $ 616 | 489 |
Percent Change (as a percent) | 23.90% | 25.80% | ||
Innovative Medicine | Immunology | OTHER IMMUNOLOGY | ||||
Sales by segment of business | ||||
Sales to customers | $ 2 | 4 | $ 2 | 7 |
Percent Change (as a percent) | (51.50%) | (75.40%) | ||
Innovative Medicine | Immunology | OTHER IMMUNOLOGY | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 2 | 4 | $ 2 | 7 |
Percent Change (as a percent) | (51.50%) | (75.40%) | ||
Innovative Medicine | Immunology | OTHER IMMUNOLOGY | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 0 | 0 | $ 0 | 0 |
Percent Change (as a percent) | 0% | 0% | ||
Innovative Medicine | Infectious Diseases | ||||
Sales by segment of business | ||||
Sales to customers | $ 965 | 1,121 | $ 1,786 | 2,707 |
Percent Change (as a percent) | (13.90%) | (34.00%) | ||
Innovative Medicine | Infectious Diseases | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 334 | 395 | $ 658 | 787 |
Percent Change (as a percent) | (15.40%) | (16.40%) | ||
Innovative Medicine | Infectious Diseases | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 631 | 727 | $ 1,128 | 1,920 |
Percent Change (as a percent) | (13.10%) | (41.30%) | ||
Innovative Medicine | Infectious Diseases | COVID-19 | ||||
Sales by segment of business | ||||
Sales to customers | $ 172 | 285 | $ 197 | 1,032 |
Percent Change (as a percent) | (39.70%) | (80.90%) | ||
Innovative Medicine | Infectious Diseases | COVID-19 | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 0 | 0 | $ 0 | 0 |
Percent Change (as a percent) | 0% | 0% | ||
Innovative Medicine | Infectious Diseases | COVID-19 | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 172 | 285 | $ 197 | 1,032 |
Percent Change (as a percent) | (39.70%) | (80.90%) | ||
Innovative Medicine | Infectious Diseases | EDURANT / rilpivirine | ||||
Sales by segment of business | ||||
Sales to customers | $ 297 | 266 | $ 620 | 546 |
Percent Change (as a percent) | 11% | 13.40% | ||
Innovative Medicine | Infectious Diseases | EDURANT / rilpivirine | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 8 | 8 | $ 16 | 17 |
Percent Change (as a percent) | (2.80%) | (7.00%) | ||
Innovative Medicine | Infectious Diseases | EDURANT / rilpivirine | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 288 | 258 | $ 603 | 529 |
Percent Change (as a percent) | 11.50% | 14.10% | ||
Innovative Medicine | Infectious Diseases | PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA | ||||
Sales by segment of business | ||||
Sales to customers | $ 438 | 491 | $ 856 | 968 |
Percent Change (as a percent) | (11.00%) | (11.60%) | ||
Innovative Medicine | Infectious Diseases | PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 321 | 382 | $ 635 | 760 |
Percent Change (as a percent) | (16.00%) | (16.50%) | ||
Innovative Medicine | Infectious Diseases | PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 117 | 109 | $ 221 | 208 |
Percent Change (as a percent) | 6.50% | 6% | ||
Innovative Medicine | Infectious Diseases | OTHER INFECTIOUS DISEASES( | ||||
Sales by segment of business | ||||
Sales to customers | $ 61 | 79 | $ 114 | 161 |
Percent Change (as a percent) | (23.10%) | (29.30%) | ||
Innovative Medicine | Infectious Diseases | OTHER INFECTIOUS DISEASES( | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 5 | 5 | $ 7 | 10 |
Percent Change (as a percent) | 18.50% | (29.40%) | ||
Innovative Medicine | Infectious Diseases | OTHER INFECTIOUS DISEASES( | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 55 | 74 | $ 107 | 151 |
Percent Change (as a percent) | (25.60%) | (29.30%) | ||
Innovative Medicine | Neuroscience | ||||
Sales by segment of business | ||||
Sales to customers | $ 1,782 | 1,793 | $ 3,585 | 3,597 |
Percent Change (as a percent) | (0.60%) | (0.30%) | ||
Innovative Medicine | Neuroscience | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 1,102 | 1,029 | $ 2,156 | 2,007 |
Percent Change (as a percent) | 7.10% | 7.40% | ||
Innovative Medicine | Neuroscience | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 679 | 764 | $ 1,428 | 1,590 |
Percent Change (as a percent) | (11.10%) | (10.20%) | ||
Innovative Medicine | Neuroscience | CONCERTA / methylphenidate | ||||
Sales by segment of business | ||||
Sales to customers | $ 163 | 208 | $ 340 | 414 |
Percent Change (as a percent) | (21.50%) | (17.80%) | ||
Innovative Medicine | Neuroscience | CONCERTA / methylphenidate | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 34 | 64 | $ 75 | 134 |
Percent Change (as a percent) | (47.70%) | (44.30%) | ||
Innovative Medicine | Neuroscience | CONCERTA / methylphenidate | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 129 | 143 | $ 265 | 279 |
Percent Change (as a percent) | (9.80%) | (5.10%) | ||
Innovative Medicine | Neuroscience | INVEGA SUSTENNA / XEPLION / INVEGA TRINZA / TREVICTA | ||||
Sales by segment of business | ||||
Sales to customers | $ 1,054 | 1,031 | $ 2,110 | 2,075 |
Percent Change (as a percent) | 2.20% | 1.70% | ||
Innovative Medicine | Neuroscience | INVEGA SUSTENNA / XEPLION / INVEGA TRINZA / TREVICTA | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 784 | 721 | $ 1,549 | 1,434 |
Percent Change (as a percent) | 8.80% | 8% | ||
Innovative Medicine | Neuroscience | INVEGA SUSTENNA / XEPLION / INVEGA TRINZA / TREVICTA | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 269 | 310 | $ 561 | 641 |
Percent Change (as a percent) | (13.10%) | (12.40%) | ||
Innovative Medicine | Neuroscience | SPRAVATO | ||||
Sales by segment of business | ||||
Sales to customers | $ 271 | 169 | $ 496 | 300 |
Percent Change (as a percent) | 60.20% | 65.50% | ||
Innovative Medicine | Neuroscience | SPRAVATO | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 226 | 144 | $ 417 | 255 |
Percent Change (as a percent) | 57.90% | 63.90% | ||
Innovative Medicine | Neuroscience | SPRAVATO | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 44 | 25 | $ 78 | 45 |
Percent Change (as a percent) | 73.50% | 74.60% | ||
Innovative Medicine | Neuroscience | OTHER NEUROSCIENCE | ||||
Sales by segment of business | ||||
Sales to customers | $ 294 | 386 | $ 639 | 809 |
Percent Change (as a percent) | (23.70%) | (21.00%) | ||
Innovative Medicine | Neuroscience | OTHER NEUROSCIENCE | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 57 | 100 | $ 115 | 184 |
Percent Change (as a percent) | (42.50%) | (37.30%) | ||
Innovative Medicine | Neuroscience | OTHER NEUROSCIENCE | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 237 | 286 | $ 524 | 625 |
Percent Change (as a percent) | (17.00%) | (16.20%) | ||
Innovative Medicine | Oncology | ||||
Sales by segment of business | ||||
Sales to customers | $ 5,090 | 4,398 | $ 9,904 | 8,510 |
Percent Change (as a percent) | 15.70% | 16.40% | ||
Innovative Medicine | Oncology | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 2,636 | 2,069 | $ 5,019 | 3,958 |
Percent Change (as a percent) | 27.40% | 26.80% | ||
Innovative Medicine | Oncology | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 2,455 | 2,329 | $ 4,885 | 4,552 |
Percent Change (as a percent) | 5.40% | 7.30% | ||
Innovative Medicine | Oncology | CARVYKTI | ||||
Sales by segment of business | ||||
Sales to customers | $ 186 | 117 | $ 343 | 189 |
Percent Change (as a percent) | 59.80% | 81.50% | ||
Innovative Medicine | Oncology | CARVYKTI | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 167 | 114 | $ 307 | 184 |
Percent Change (as a percent) | 46.50% | 66.80% | ||
Innovative Medicine | Oncology | CARVYKTI | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 20 | 3 | $ 36 | 5 |
Innovative Medicine | Oncology | DARZALEX | ||||
Sales by segment of business | ||||
Sales to customers | $ 2,878 | 2,431 | $ 5,570 | 4,695 |
Percent Change (as a percent) | 18.40% | 18.60% | ||
Innovative Medicine | Oncology | DARZALEX | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 1,641 | 1,322 | $ 3,105 | 2,513 |
Percent Change (as a percent) | 24.20% | 23.60% | ||
Innovative Medicine | Oncology | DARZALEX | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 1,237 | 1,110 | $ 2,465 | 2,182 |
Percent Change (as a percent) | 11.50% | 12.90% | ||
Innovative Medicine | Oncology | ERLEADA | ||||
Sales by segment of business | ||||
Sales to customers | $ 736 | 567 | $ 1,425 | 1,109 |
Percent Change (as a percent) | 29.80% | 28.40% | ||
Innovative Medicine | Oncology | ERLEADA | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 318 | 241 | $ 603 | 490 |
Percent Change (as a percent) | 32.20% | 23% | ||
Innovative Medicine | Oncology | ERLEADA | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 418 | 326 | $ 822 | 619 |
Percent Change (as a percent) | 28% | 32.80% | ||
Innovative Medicine | Oncology | IMBRUVICA | ||||
Sales by segment of business | ||||
Sales to customers | $ 770 | 841 | $ 1,554 | 1,668 |
Percent Change (as a percent) | (8.50%) | (6.90%) | ||
Innovative Medicine | Oncology | IMBRUVICA | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 246 | 262 | $ 511 | 532 |
Percent Change (as a percent) | (6.40%) | (3.90%) | ||
Innovative Medicine | Oncology | IMBRUVICA | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 525 | 579 | $ 1,043 | 1,136 |
Percent Change (as a percent) | (9.40%) | (8.30%) | ||
Innovative Medicine | Oncology | ZYTIGA / abiraterone acetate | ||||
Sales by segment of business | ||||
Sales to customers | $ 165 | 227 | $ 346 | 472 |
Percent Change (as a percent) | (27.70%) | (26.80%) | ||
Innovative Medicine | Oncology | ZYTIGA / abiraterone acetate | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 11 | 9 | $ 20 | 25 |
Percent Change (as a percent) | 21.60% | (19.70%) | ||
Innovative Medicine | Oncology | ZYTIGA / abiraterone acetate | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 154 | 218 | $ 326 | 447 |
Percent Change (as a percent) | (29.60%) | (27.20%) | ||
Innovative Medicine | Oncology | OTHER ONCOLOGY | ||||
Sales by segment of business | ||||
Sales to customers | $ 221 | 120 | $ 399 | 219 |
Percent Change (as a percent) | 84.20% | 82.40% | ||
Innovative Medicine | Oncology | OTHER ONCOLOGY | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 148 | 40 | $ 267 | 75 |
Innovative Medicine | Oncology | OTHER ONCOLOGY | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 71 | 80 | $ 131 | 144 |
Percent Change (as a percent) | (10.40%) | (8.50%) | ||
Innovative Medicine | Oncology | Tecvayli | ||||
Sales by segment of business | ||||
Sales to customers | $ 135 | 94 | $ 268 | 157 |
Percent Change (as a percent) | 42.90% | 70.20% | ||
Innovative Medicine | Oncology | Tecvayli | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 104 | 82 | $ 205 | 139 |
Percent Change (as a percent) | 27.50% | 47.70% | ||
Innovative Medicine | Oncology | Tecvayli | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 30 | 12 | $ 63 | 18 |
Innovative Medicine | Pulmonary Hypertension | ||||
Sales by segment of business | ||||
Sales to customers | $ 1,039 | 972 | $ 2,088 | 1,844 |
Percent Change (as a percent) | 6.90% | 13.20% | ||
Innovative Medicine | Pulmonary Hypertension | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 743 | 684 | $ 1,509 | 1,284 |
Percent Change (as a percent) | 8.70% | 17.50% | ||
Innovative Medicine | Pulmonary Hypertension | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 296 | 289 | $ 579 | 561 |
Percent Change (as a percent) | 2.60% | 3.40% | ||
Innovative Medicine | Pulmonary Hypertension | OPSUMIT | ||||
Sales by segment of business | ||||
Sales to customers | $ 544 | 507 | $ 1,068 | 947 |
Percent Change (as a percent) | 7.10% | 12.70% | ||
Innovative Medicine | Pulmonary Hypertension | OPSUMIT | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 373 | 328 | $ 729 | 601 |
Percent Change (as a percent) | 13.70% | 21.30% | ||
Innovative Medicine | Pulmonary Hypertension | OPSUMIT | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 170 | 179 | $ 339 | 346 |
Percent Change (as a percent) | (5.00%) | (2.20%) | ||
Innovative Medicine | Pulmonary Hypertension | UPTRAVI | ||||
Sales by segment of business | ||||
Sales to customers | $ 426 | 399 | $ 894 | 761 |
Percent Change (as a percent) | 6.60% | 17.40% | ||
Innovative Medicine | Pulmonary Hypertension | UPTRAVI | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 349 | 338 | $ 741 | 642 |
Percent Change (as a percent) | 3.30% | 15.50% | ||
Innovative Medicine | Pulmonary Hypertension | UPTRAVI | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 76 | 61 | $ 152 | 119 |
Percent Change (as a percent) | 24.60% | 27.60% | ||
Innovative Medicine | Pulmonary Hypertension | Other | ||||
Sales by segment of business | ||||
Sales to customers | $ 71 | 66 | $ 127 | 136 |
Percent Change (as a percent) | 7.20% | (6.50%) | ||
Innovative Medicine | Pulmonary Hypertension | Other | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 20 | 18 | $ 38 | 41 |
Percent Change (as a percent) | 18.80% | (6.10%) | ||
Innovative Medicine | Pulmonary Hypertension | Other | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 50 | 48 | $ 89 | 95 |
Percent Change (as a percent) | 3.10% | (6.70%) | ||
Innovative Medicine | Cardiovascular / Metabolism / Other | ||||
Sales by segment of business | ||||
Sales to customers | $ 892 | 950 | $ 1,721 | 1,877 |
Percent Change (as a percent) | (6.20%) | (8.30%) | ||
Innovative Medicine | Cardiovascular / Metabolism / Other | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 717 | 776 | $ 1,348 | 1,491 |
Percent Change (as a percent) | (7.70%) | (9.60%) | ||
Innovative Medicine | Cardiovascular / Metabolism / Other | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 176 | 174 | $ 373 | 386 |
Percent Change (as a percent) | 0.60% | (3.60%) | ||
Innovative Medicine | Cardiovascular / Metabolism / Other | Other | ||||
Sales by segment of business | ||||
Sales to customers | $ 305 | 313 | $ 616 | 662 |
Percent Change (as a percent) | (2.50%) | (7.00%) | ||
Innovative Medicine | Cardiovascular / Metabolism / Other | Other | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 129 | 138 | $ 243 | 275 |
Percent Change (as a percent) | (6.40%) | (11.80%) | ||
Innovative Medicine | Cardiovascular / Metabolism / Other | Other | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 176 | 174 | $ 373 | 386 |
Percent Change (as a percent) | 0.60% | (3.60%) | ||
Innovative Medicine | Cardiovascular / Metabolism / Other | XARELTO | ||||
Sales by segment of business | ||||
Sales to customers | $ 587 | 637 | $ 1,105 | 1,215 |
Percent Change (as a percent) | (7.90%) | (9.10%) | ||
Innovative Medicine | Cardiovascular / Metabolism / Other | XARELTO | U.S. | ||||
Sales by segment of business | ||||
Sales to customers | $ 587 | 637 | $ 1,105 | 1,215 |
Percent Change (as a percent) | (7.90%) | (9.10%) | ||
Innovative Medicine | Cardiovascular / Metabolism / Other | XARELTO | International | ||||
Sales by segment of business | ||||
Sales to customers | $ 0 | $ 0 | $ 0 | $ 0 |
Percent Change (as a percent) | 0% | 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 | 6 Months Ended | ||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | |
Segment Reporting Information [Line Items] | ||||
Worldwide income (loss) before tax | $ 5,748 | $ 6,306 | $ 9,462 | $ 5,019 |
Percent Change | (8.80%) | 88.50% | ||
Restructuring charges | $ (13) | 145 | $ 151 | 275 |
Loss on shares outstanding | 400 | 400 | ||
Baby Powder | Talc | ||||
Segment Reporting Information [Line Items] | ||||
Loss contingency, loss in period | 300 | 200 | 3,000 | 7,100 |
Innovative Medicine | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring charges | 100 | 100 | 300 | |
Restructuring income | 100 | |||
Impairment of intangible assets | 200 | 200 | ||
MedTech | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring charges | 100 | 100 | ||
Litigation settlement, gain | 300 | 300 | ||
Acquisition related costs | 600 | 600 | 100 | |
Gain from divestiture of business | 200 | 200 | ||
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total segment operating income | $ 6,548 | 6,483 | $ 13,037 | 12,294 |
Percent Change | 1% | 6% | ||
Restructuring charges | $ (11) | $ 160 | ||
Operating Segments | Innovative Medicine | ||||
Segment Reporting Information [Line Items] | ||||
Total segment operating income | $ 5,459 | 4,812 | $ 10,428 | 9,214 |
Percent Change | 13.40% | 13.20% | ||
Amortization | $ 700 | 700 | $ 1,400 | 1,500 |
Restructuring charges | (63) | 81 | ||
Other cost of operating revenue | 100 | 200 | 100 | 600 |
Operating Segments | MedTech | ||||
Segment Reporting Information [Line Items] | ||||
Total segment operating income | $ 1,089 | 1,671 | $ 2,609 | 3,080 |
Percent Change | (34.80%) | (15.30%) | ||
Amortization | $ 400 | 400 | $ 800 | 800 |
Restructuring charges | 52 | 79 | ||
Corporate, Non-Segment | ||||
Segment Reporting Information [Line Items] | ||||
Total segment operating income | $ 800 | $ 177 | $ 3,575 | $ 7,275 |
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 | 6 Months Ended | ||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | |
Sales by geographic area | ||||
Sales | $ 22,447 | $ 21,519 | $ 43,830 | $ 42,413 |
Percent Change | 4.30% | 3.30% | ||
United States | ||||
Sales by geographic area | ||||
Sales | $ 12,569 | 11,657 | $ 24,189 | 22,439 |
Percent Change | 7.80% | 7.80% | ||
Europe | ||||
Sales by geographic area | ||||
Sales | $ 5,214 | 5,131 | $ 10,377 | 10,721 |
Percent Change | 1.60% | (3.20%) | ||
Western Hemisphere, excluding U.S. | ||||
Sales by geographic area | ||||
Sales | $ 1,212 | 1,136 | $ 2,406 | 2,212 |
Percent Change | 6.70% | 8.80% | ||
Asia-Pacific, Africa | ||||
Sales by geographic area | ||||
Sales | $ 3,452 | $ 3,595 | $ 6,858 | $ 7,041 |
Percent Change | (4.00%) | (2.60%) |
Acquisitions and Divestitures_2
Acquisitions and Divestitures (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jul. 11, 2024 | Jun. 20, 2024 | May 31, 2024 | Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2024 | Jul. 02, 2023 | Dec. 31, 2023 | |
Business Acquisition [Line Items] | ||||||||
Payments to acquire businesses | $ 14,807 | $ 0 | ||||||
Goodwill, related to acquisitions | 8,057 | |||||||
Contingent consideration | $ 1,248 | 1,248 | $ 1,092 | |||||
Proceeds from sale of business | 300 | $ 200 | ||||||
Subsequent Event | Yellow Jersey Therapeutics | ||||||||
Business Acquisition [Line Items] | ||||||||
Asset acquisition, consideration transferred | $ 1,250 | |||||||
Acquired in-process research and development | $ 1,250 | |||||||
Proteologix | ||||||||
Business Acquisition [Line Items] | ||||||||
Payments to acquire businesses | $ 800 | |||||||
Assets acquired | 1,200 | |||||||
IPR&D | 900 | |||||||
Goodwill, related to acquisitions | 300 | |||||||
Liabilities assumed | 300 | |||||||
Contingent consideration | $ 100 | |||||||
Discount rate | 16% | |||||||
Acquisition related costs | 0 | |||||||
Proteologix | Minimum | ||||||||
Business Acquisition [Line Items] | ||||||||
Probability of success factor | 30% | |||||||
Proteologix | Maximum | ||||||||
Business Acquisition [Line Items] | ||||||||
Probability of success factor | 45% | |||||||
Shockwave Medical, Inc. | ||||||||
Business Acquisition [Line Items] | ||||||||
Assets acquired | $ 15,500 | |||||||
IPR&D | 600 | |||||||
Liabilities assumed | $ 2,900 | |||||||
Discount rate | 9% | |||||||
Acquisition related costs | 500 | |||||||
Acquisition related costs, equity awards | 400 | |||||||
Share price (in dollars per share) | $ 335 | |||||||
Consideration transferred | $ 200 | |||||||
Weighted average useful life | 14 years | |||||||
Deferred taxes | $ 1,500 | |||||||
Shockwave Medical, Inc. | Minimum | ||||||||
Business Acquisition [Line Items] | ||||||||
Probability of success factor | 50% | |||||||
Ambrx | ||||||||
Business Acquisition [Line Items] | ||||||||
Payments to acquire businesses | 1,800 | |||||||
Assets acquired | 2,300 | 2,300 | ||||||
IPR&D | 1,900 | 1,900 | ||||||
Goodwill, related to acquisitions | 300 | |||||||
Liabilities assumed | $ 500 | $ 500 | ||||||
Discount rate | 17% | 17% | ||||||
Share price (in dollars per share) | $ 28 | $ 28 | ||||||
Consideration transferred | $ 2,000 | |||||||
Deferred taxes | $ 400 | $ 400 | ||||||
Ambrx | Minimum | ||||||||
Business Acquisition [Line Items] | ||||||||
Probability of success factor | 40% | 40% | ||||||
Ambrx | Maximum | ||||||||
Business Acquisition [Line Items] | ||||||||
Probability of success factor | 70% | 70% |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Schedule of Preliminary Amounts Recognized for Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2024 | May 31, 2024 | Dec. 31, 2023 | |
Assets acquired: | |||
Goodwill (Note 3) | $ 44,250 | $ 36,558 | |
Shockwave Medical, Inc. | |||
Assets acquired: | |||
Cash | $ 1,100 | ||
Goodwill (Note 3) | 7,500 | ||
Amortizable intangibles | 5,300 | ||
IPR&D | 600 | ||
Inventory | 500 | ||
Other assets | 500 | ||
Total assets acquired | 15,500 | ||
Liabilities assumed: | |||
Deferred taxes | 1,500 | ||
Notes payable assumed | 1,000 | ||
Accrued liabilities assumed | 400 | ||
Total liabilities assumed | 2,900 | ||
Net assets acquired | 13,100 | $ 12,600 | |
Equity awards settled | 600 | ||
Settlement of notes payable | $ 1,000 |
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 ($) | Jul. 31, 2018 USD ($) | Jun. 30, 2024 USD ($) claimant claim | Apr. 03, 2022 USD ($) | 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 | 20 | ||||||||||
Product liability contingency, number of claimants | claimant | 3,500 | ||||||||||
Loss contingency accrual, payment percentage | 70% | ||||||||||
Pending claims, number, remaining | claim | 420 | ||||||||||
Loss contingency pending claims, number, additional | claim | 3 | ||||||||||
Physiomesh | |||||||||||
Legal Proceeding (Textuals) | |||||||||||
Product liability contingency, number of claimants | claimant | 170 | ||||||||||
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) | |||||||||||
Litigation contingency | $ 6,475 | ||||||||||
Payment period | 25 years | ||||||||||
Damages sought, nominal value | $ 8,000 | ||||||||||
Bankruptcy loss contingency, discount rate | 4.40% | ||||||||||
Total claims against company, percent | 99.75% | ||||||||||
Incremental charges | $ 3,000 | ||||||||||
Loss contingency accrual | 10,600 | ||||||||||
Loss contingency accrual, nominal value | $ 12,800 | ||||||||||
Mesothelioma and State Claims | |||||||||||
Legal Proceeding (Textuals) | |||||||||||
Claims settled, percent | 95% |
Legal Proceedings - Product Lia
Legal Proceedings - Product Liability (Details) | Jun. 30, 2024 claimant |
Talc | |
Loss Contingencies [Line Items] | |
Product liability contingency, number of claimants | 62,370 |
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 | 910 |
Pelvic Meshes | |
Loss Contingencies [Line Items] | |
Product liability contingency, number of claimants | 6,230 |
Physiomesh | |
Loss Contingencies [Line Items] | |
Product liability contingency, number of claimants | 170 |
Risperdal | |
Loss Contingencies [Line Items] | |
Product liability contingency, number of claimants | 20 |
Elmiron | |
Loss Contingencies [Line Items] | |
Product liability contingency, number of claimants | 2,170 |
Kenvue Separation - Net Earning
Kenvue Separation - Net Earnings from Discontinued Operation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jul. 02, 2023 | Jul. 02, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | ||
Sales to customers | $ 4,011 | $ 7,863 |
Cost of products sold | 1,750 | 3,458 |
Gross profit | 2,261 | 4,405 |
Selling, marketing and administrative expenses | 1,269 | 2,501 |
Research and development expense | 126 | 234 |
Interest Income | (42) | (79) |
Interest expense, net of portion capitalized | 128 | 131 |
Other (income) expense, net | 324 | 612 |
Earnings from Discontinued Operations Before Provision for Taxes on Income | 456 | 1,006 |
Provision for taxes on income | 688 | 815 |
Net (loss)/earnings from Discontinued Operations | $ (232) | $ 191 |
Kenvue Separation - Depreciatio
Kenvue Separation - Depreciation and Amortization of Discontinued Operation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jul. 02, 2023 | Jul. 02, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | ||
Depreciation and Amortization | $ 149 | $ 302 |
Capital expenditures | $ 92 | $ 139 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ (13) | $ 145 | $ 151 | $ 275 |
R&D Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring income | 100 | |||
Restructuring charges | $ 100 | 100 | $ 300 | |
Restructuring charges recorded to date | 600 | 600 | ||
Orthopedics Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 100 | 100 | ||
Restructuring charges recorded to date | 400 | 400 | ||
Orthopedics Restructuring Plan | Minimum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring estimated cost | 700 | 700 | ||
Orthopedics Restructuring Plan | Maximum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring estimated cost | $ 800 | $ 800 |
Restructuring - Schedule of Res
Restructuring - Schedule of Restructuring Reserve (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jul. 02, 2023 | Jun. 30, 2024 | Jul. 02, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ (13) | $ 145 | $ 151 | $ 275 |
Operating Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | (11) | 160 | ||
Innovative Medicine | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 100 | 100 | $ 300 | |
Innovative Medicine | Operating Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | (63) | 81 | ||
MEDTECH | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 100 | 100 | ||
MEDTECH | Operating Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 52 | 79 | ||
MEDTECH | Restructuring Charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 50 | 70 | ||
MEDTECH | Costs of Goods and Services Sold | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 2 | $ 9 |