Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 22, 2013 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Amgen Inc. | |
Entity Central Index Key | 318154 | |
Document Type | 10-Q | |
Document Period End Date | 30-Sep-13 | |
Amendment Flag | FALSE | |
Document Fiscal Year Focus | 2013 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 754,126,197 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues: | ||||
Product sales | $4,647 | $4,201 | $13,393 | $12,302 |
Other revenues | 101 | 118 | 272 | 542 |
Total revenues | 4,748 | 4,319 | 13,665 | 12,844 |
Operating expenses: | ||||
Cost of sales | 788 | 775 | 2,317 | 2,277 |
Research and development | 989 | 880 | 2,834 | 2,442 |
Selling, general and administrative | 1,249 | 1,131 | 3,663 | 3,441 |
Other | 34 | 110 | 171 | 195 |
Total operating expenses | 3,060 | 2,896 | 8,985 | 8,355 |
Operating income | 1,688 | 1,423 | 4,680 | 4,489 |
Interest expense, net | 257 | 271 | 761 | 762 |
Interest and other income, net | 72 | 111 | 332 | 359 |
Income before income taxes | 1,503 | 1,263 | 4,251 | 4,086 |
Provision for income taxes | 135 | 156 | 191 | 529 |
Net income | $1,368 | $1,107 | $4,060 | $3,557 |
Earnings per share: | ||||
Basic (in usd per share) | $1.81 | $1.44 | $5.40 | $4.57 |
Diluted (in usd per share) | $1.79 | $1.41 | $5.31 | $4.51 |
Shares used in calculation of earnings per share: | ||||
Basic (in shares) | 754 | 771 | 752 | 779 |
Diluted (in shares) | 766 | 783 | 764 | 789 |
Dividends paid per share (in usd per share) | $0.47 | $0.36 | $1.41 | $1.08 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $1,368 | $1,107 | $4,060 | $3,557 |
Other comprehensive income (loss), net of reclassification adjustments and taxes: | ||||
Foreign currency translation gains (losses) | 12 | 22 | -36 | -20 |
Effective portion of cash flow hedges | -84 | -117 | 13 | -92 |
Net unrealized gains (losses) on available-for-sale securities | 48 | 88 | -219 | 85 |
Other | -2 | 3 | -1 | 3 |
Other comprehensive loss, net of tax | -26 | -4 | -243 | -24 |
Comprehensive income | $1,342 | $1,103 | $3,817 | $3,533 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $8,281 | $3,257 |
Marketable securities | 14,277 | 20,804 |
Receivable from sale of investments | 560 | 0 |
Trade receivables, net | 2,670 | 2,518 |
Inventories | 2,838 | 2,744 |
Other current assets | 2,049 | 1,886 |
Total current assets | 30,675 | 31,209 |
Property, plant and equipment, net | 5,283 | 5,326 |
Intangible assets, net | 3,682 | 3,968 |
Goodwill | 12,572 | 12,662 |
Restricted investments | 3,411 | 0 |
Other assets | 1,450 | 1,133 |
Total assets | 57,073 | 54,298 |
Current liabilities: | ||
Accounts payable | 895 | 905 |
Accrued liabilities | 3,937 | 4,791 |
Current portion of long-term debt | 11 | 2,495 |
Total current liabilities | 4,843 | 8,191 |
Long-term debt | 27,178 | 24,034 |
Other noncurrent liabilities | 3,324 | 3,013 |
Contingencies and commitments | ||
Stockholders’ equity: | ||
Common stock and additional paid-in capital; $0.0001 par value; 2,750.0 shares authorized; outstanding - 754.1 shares in 2013 and 756.3 shares in 2012 | 29,665 | 29,337 |
Accumulated deficit | -7,840 | -10,423 |
Accumulated other comprehensive (loss) income | -97 | 146 |
Total stockholders’ equity | 21,728 | 19,060 |
Total liabilities and stockholders’ equity | $57,073 | $54,298 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, except Per Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Common stock and additional paid-in capital, par value (in usd per share) | $0.00 | $0.00 |
Common stock and additional paid-in capital, shares authorized | 2,750 | 2,750 |
Common stock and additional paid-in capital, shares outstanding | 754.1 | 756.3 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ||
Net income | $4,060 | $3,557 |
Depreciation and amortization | 842 | 815 |
Stock-based compensation expense | 304 | 271 |
Other items, net | 119 | -72 |
Changes in operating assets and liabilities, net of acquisitions: | ||
Trade receivables, net | -132 | 198 |
Inventories | -71 | -175 |
Other assets | -174 | 213 |
Accounts payable | 6 | 189 |
Accrued income taxes | -483 | -85 |
Other liabilities | -15 | 159 |
Net cash provided by operating activities | 4,456 | 5,070 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | -492 | -489 |
Cash paid for acquisitions, net of cash acquired | 0 | -1,990 |
Purchases of marketable securities | -17,878 | -18,864 |
Proceeds from sales of marketable securities | 15,743 | 12,544 |
Proceeds from maturities of marketable securities | 4,846 | 878 |
Restriction of investments | -526 | 0 |
Other | -44 | -38 |
Net cash provided by (used in) investing activities | 1,649 | -7,959 |
Cash flows from financing activities: | ||
Repayment of debt | -2,500 | -102 |
Net proceeds from issuance of debt | 3,074 | 4,933 |
Repurchases of common stock | -832 | -3,390 |
Dividends paid | -1,061 | -844 |
Net proceeds from issuance of common stock in connection with the Company’s equity award programs | 268 | 1,129 |
Other | -30 | 40 |
Net cash (used in) provided by financing activities | -1,081 | 1,766 |
Increase (decrease) in cash and cash equivalents | 5,024 | -1,123 |
Cash and cash equivalents at beginning of period | 3,257 | 6,946 |
Cash and cash equivalents at end of period | $8,281 | $5,823 |
Summary_of_significant_account
Summary of significant accounting policies | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | Summary of significant accounting policies |
Business | |
Amgen Inc. (including its subsidiaries, referred to as “Amgen,” “the Company,” “we,” “our” or “us”) is a global biotechnology pioneer that discovers, develops, manufactures and delivers innovative human therapeutics. We operate in one business segment: human therapeutics. | |
Basis of presentation | |
The financial information for the three and nine months ended September 30, 2013 and 2012, is unaudited but includes all adjustments (consisting of only normal recurring adjustments, unless otherwise indicated), which Amgen considers necessary for a fair presentation of its condensed consolidated results of operations for those periods. Interim results are not necessarily indicative of results for the full fiscal year. | |
Prior-period amounts for amortization of certain acquired intangible assets have been reclassified within Operating expenses in our Condensed Consolidated Statements of Income to conform to the current-period presentation. | |
The condensed consolidated financial statements should be read in conjunction with our consolidated financial statements and the notes thereto contained in our Annual Report on Form 10-K for the year ended December 31, 2012 and in our Quarterly Reports on Form 10-Q for the periods ended March 31, 2013, and June 30, 2013. | |
Principles of consolidation | |
The condensed consolidated financial statements include the accounts of Amgen as well as its majority-owned subsidiaries. We do not have any significant interests in any variable interest entities. All material intercompany transactions and balances have been eliminated in consolidation. | |
Use of estimates | |
The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States (GAAP) requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results may differ from those estimates. | |
Product sales for U.S. federal government stockpiles | |
Amgen recognizes revenue from the sales of product to the U.S. federal government for stockpile in accordance with Securities and Exchange Commission (SEC) Interpretation, Commission Guidance Regarding Accounting for Sales of Vaccines and Bioterror Countermeasures to the Federal Government for Placement into the Pediatric Vaccine Stockpile or the Strategic National Stockpile (SNS). We recognized $155 million of revenue for NEUPOGEN® (filgrastim) during the three months ended September 30, 2013, for purchases by the government for the SNS. We are contracted to manage this inventory of product until the government requests shipment. | |
Property, plant and equipment, net | |
Property, plant and equipment is recorded at historical cost, net of accumulated depreciation and amortization of $6.8 billion and $6.6 billion as of September 30, 2013, and December 31, 2012, respectively. | |
Restricted investments | |
We have restricted investments on our Condensed Consolidated Balance Sheet that are owned by ATL Holdings Limited (ATL Holdings), a wholly-owned subsidiary. ATL Holdings is an entity distinct from the Company and its other subsidiaries, with separate assets and liabilities. Because a third party owns Class A preferred shares of ATL Holdings, this entity is required to hold restricted cash or investments. See Note 7, Financing arrangements. On September 30, 2013, $2,881 million of marketable securities, $526 million of cash and cash equivalents and $4 million of related interest receivable were reclassified to Restricted investments on our Condensed Consolidated Balance Sheet. | |
Comprehensive income | |
In January 2013, we adopted a new accounting standard that requires additional disclosures regarding amounts that are reclassified out of accumulated other comprehensive income (AOCI). In accordance with the requirements of the standard, the effects of significant reclassifications out of AOCI, by component, on the respective lines in the Condensed Consolidated Statements of Income are presented in Note 8, Stockholders' equity. The standard was required to be applied prospectively beginning January 1, 2013. | |
Cost savings initiatives | |
Included in Other operating expenses for the three and nine months ended September 30, 2013, are charges for certain costs savings initiatives of $35 million and $46 million, respectively, compared with $36 million and $106 million for the corresponding periods of the prior year. |
Business_combinations
Business combinations | 9 Months Ended |
Sep. 30, 2013 | |
Business Combinations [Abstract] | |
Business combinations | Business combinations |
deCODE Genetics | |
On December 10, 2012, we acquired all of the outstanding stock of deCODE Genetics (deCODE), a privately held company that is a global leader in human genetics, for total consideration of $401 million in cash. The transaction, which was accounted for as a business combination, provides us with an opportunity to enhance our efforts to identify and validate human disease targets. deCODE's operations, which are not material, have been included in our consolidated financial statements commencing on the acquisition date. | |
We allocated the consideration to acquire deCODE to finite-lived intangible assets of $465 million comprised of discovery capacity in the genetics of human diseases with an estimated useful life of 10 years, $47 million to goodwill which is not deductible for tax purposes, deferred tax liabilities of $93 million and other net liabilities of $18 million. These amounts reflect adjustments recognized during the nine months ended September 30, 2013, to the acquisition date fair values of assets acquired and liabilities assumed in this acquisition which did not have a material effect on our current or prior period financial statements. These adjustments reduced goodwill by $46 million due primarily to a revision which increased the acquisition date fair value of finite-lived intangible assets by $64 million. | |
Our accounting for the acquisition is preliminary and will be finalized upon completion of our analysis to determine the acquisition date fair values of certain tax-related items and residual impact on goodwill. |
Income_taxes
Income taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes |
The effective tax rates for the three and nine months ended September 30, 2013 were 9.0% and 4.5%, respectively, compared with 12.4% and 12.9% for the corresponding periods of the prior year. The effective rates are different from the federal statutory rates primarily as a result of indefinitely invested earnings of our foreign operations. We do not provide for U.S. income taxes on undistributed earnings of our foreign operations that are intended to be invested indefinitely outside of the United States. In addition, the effective tax rates were reduced by foreign tax credits associated with the Puerto Rico excise tax described below. The effective tax rate for the nine months ended September 30, 2013, was further reduced by two significant events that occurred during the three months ended March 31, 2013. First, we settled our examination with the Internal Revenue Service (IRS) for the years ended December 31, 2007, 2008 and 2009 in which we agreed to certain adjustments proposed by the IRS and remeasured our unrecognized tax benefits (UTBs) accordingly. Second, the American Taxpayer Relief Act of 2012, enacted during the first quarter of 2013, reinstated the federal research and development (R&D) tax credit for 2012 and 2013. Therefore, our effective tax rate for the nine months ended September 30, 2013, includes a benefit for the full-year 2012 R&D tax credit, recorded as a discrete item in the first quarter. | |
As of January 1, 2011, Puerto Rico began imposing a temporary excise tax on the purchase of goods and services from a related manufacturer in Puerto Rico. The excise tax is imposed on the gross intercompany purchase price of the goods and services and was initially effective for a six-year period beginning in 2011, with the excise tax rate declining in each year (from 4% in 2011 to 1% in 2016). During the three months ended March 31, 2013, the Puerto Rico government enacted an amendment to the excise tax legislation which increased the excise tax rate to a flat 4% effective July 1, 2013 through December 31, 2017. We account for the excise tax as a manufacturing cost that is capitalized in inventory and expensed in cost of sales when the related products are sold. For U.S. income tax purposes, the excise tax results in foreign tax credits that are generally recognized in our provision for income taxes when the excise tax is incurred. Excluding the impact of the Puerto Rico excise tax, our effective tax rates for the three and nine months ended September 30, 2013, would have been 13.8% and 9.8%, respectively, compared with 17.7% and 18.3% for the corresponding periods of the prior year. | |
Several of our legal entities file income tax returns in the U.S. federal jurisdiction, various U.S. state jurisdictions and certain foreign jurisdictions. Our income tax returns are routinely audited by the tax authorities in those jurisdictions. Significant disputes may arise with these tax authorities involving issues of the timing and amount of deductions, the use of tax credits and allocations of income among various tax jurisdictions because of differing interpretations of tax laws and regulations. The U.S. federal income tax examinations for years ended on or before December 31, 2009, and the California state income tax examinations for years ended on or before December 31, 2005, have been completed. | |
During the three and nine months ended September 30, 2013, the gross amount of our UTBs increased by approximately $85 million and $240 million, respectively, as a result of tax positions taken during the current year. Also, our UTBs decreased by approximately $200 million in the nine months ended September 30, 2013, due to settlement of federal and state tax matters in the first and second quarter. The settlements resulted in recognition of net tax benefits of approximately $195 million for the nine months ended September 30, 2013 including interest, penalties and the federal benefit of state taxes. Substantially all of the UTBs as of September 30, 2013, if recognized, would affect our effective tax rate. As of September 30, 2013, we believe it is reasonably possible that our gross liabilities for UTBs may decrease by approximately $70 million within the succeeding 12 months due to the resolution of state audits. |
Earnings_per_share
Earnings per share | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||
Earnings per share | Earnings per share | |||||||||||||||
The computation of basic earnings per share (EPS) is based on the weighted-average number of our common shares outstanding. The computation of diluted EPS is based on the weighted-average number of our common shares outstanding and dilutive potential common shares, which include principally shares that may be issued under: our stock option, restricted stock and performance unit awards, determined using the treasury stock method; and our convertible notes and warrants while outstanding, as discussed below (collectively, “dilutive securities”). The convertible note hedges purchased in connection with the issuance of our convertible notes, which terminated in February 2013, are excluded from the calculation of diluted EPS because their impact is always anti-dilutive. | ||||||||||||||||
Prior to the conversion/maturity of our 0.375% 2013 Convertible Notes in February 2013 which were cash settled, the excess of the notes' conversion value, as defined, over their principal amount were considered dilutive potential common shares for purposes of calculating diluted EPS. Warrants sold concurrent with the issuance of our 0.375% 2013 Convertible Notes were cash settled in May 2013. While outstanding, the 0.375% 2013 Convertible Notes and warrants did not have a significant impact on the number of shares used for purposes of computing diluted EPS for any periods presented. See Note 7, Financing arrangements. | ||||||||||||||||
The computation for basic and diluted EPS was as follows (in millions, except per share data): | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Income (Numerator): | ||||||||||||||||
Net income for basic and diluted EPS | $ | 1,368 | $ | 1,107 | $ | 4,060 | $ | 3,557 | ||||||||
Shares (Denominator): | ||||||||||||||||
Weighted-average shares for basic EPS | 754 | 771 | 752 | 779 | ||||||||||||
Effect of dilutive securities | 12 | 12 | 12 | 10 | ||||||||||||
Weighted-average shares for diluted EPS | 766 | 783 | 764 | 789 | ||||||||||||
Basic EPS | $ | 1.81 | $ | 1.44 | $ | 5.4 | $ | 4.57 | ||||||||
Diluted EPS | $ | 1.79 | $ | 1.41 | $ | 5.31 | $ | 4.51 | ||||||||
For the three and nine months ended September 30, 2013, the number of anti-dilutive shares of our common stock excluded from the computation of diluted EPS were not material. For the three and nine months ended September 30, 2012, there were employee stock-based awards, calculated on a weighted-average basis, to acquire 1 million and 8 million shares of our common stock, respectively, that are not included in the computation of diluted EPS because their impact would have been anti-dilutive. |
Availableforsale_investments
Available-for-sale investments | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||
Available-for-sale investments | Available-for-sale investments | ||||||||||||||||
The amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of available-for-sale investments by type of security were as follows (in millions): | |||||||||||||||||
Type of security as of September 30, 2013 | Amortized | Gross | Gross | Estimated | |||||||||||||
cost | unrealized | unrealized | fair | ||||||||||||||
gains | losses | value | |||||||||||||||
U.S. Treasury securities | $ | 6,172 | $ | 5 | $ | (4 | ) | $ | 6,173 | ||||||||
Other government-related debt securities: | |||||||||||||||||
U.S. | 1,130 | — | (8 | ) | 1,122 | ||||||||||||
Foreign and other | 1,234 | 12 | (38 | ) | 1,208 | ||||||||||||
Corporate debt securities: | |||||||||||||||||
Financial | 3,455 | 30 | (25 | ) | 3,460 | ||||||||||||
Industrial | 3,457 | 29 | (28 | ) | 3,458 | ||||||||||||
Other | 335 | 4 | (2 | ) | 337 | ||||||||||||
Residential mortgage-backed securities | 1,410 | 3 | (16 | ) | 1,397 | ||||||||||||
Other mortgage- and asset-backed securities | 1,491 | — | (39 | ) | 1,452 | ||||||||||||
Money market mutual funds | 6,907 | — | — | 6,907 | |||||||||||||
Total interest-bearing securities | 25,591 | 83 | (160 | ) | 25,514 | ||||||||||||
Equity securities | 72 | 19 | — | 91 | |||||||||||||
Total available-for-sale investments | $ | 25,663 | $ | 102 | $ | (160 | ) | $ | 25,605 | ||||||||
Type of security as of December 31, 2012 | Amortized | Gross | Gross | Estimated | |||||||||||||
cost | unrealized | unrealized | fair | ||||||||||||||
gains | losses | value | |||||||||||||||
U.S. Treasury securities | $ | 4,443 | $ | 15 | $ | — | $ | 4,458 | |||||||||
Other government-related debt securities: | |||||||||||||||||
U.S. | 1,018 | 12 | — | 1,030 | |||||||||||||
Foreign and other | 1,549 | 60 | (1 | ) | 1,608 | ||||||||||||
Corporate debt securities: | |||||||||||||||||
Financial | 3,266 | 96 | (1 | ) | 3,361 | ||||||||||||
Industrial | 4,283 | 100 | (3 | ) | 4,380 | ||||||||||||
Other | 441 | 11 | — | 452 | |||||||||||||
Residential mortgage-backed securities | 1,828 | 9 | (8 | ) | 1,829 | ||||||||||||
Other mortgage- and asset-backed securities | 1,769 | 7 | (9 | ) | 1,767 | ||||||||||||
Money market mutual funds | 2,620 | — | — | 2,620 | |||||||||||||
Other short-term interest-bearing securities | 2,186 | — | — | 2,186 | |||||||||||||
Total interest-bearing securities | 23,403 | 310 | (22 | ) | 23,691 | ||||||||||||
Equity securities | 52 | 2 | — | 54 | |||||||||||||
Total available-for-sale investments | $ | 23,455 | $ | 312 | $ | (22 | ) | $ | 23,745 | ||||||||
The fair values of available-for-sale investments by classification in the Condensed Consolidated Balance Sheets were as follows (in millions): | |||||||||||||||||
Classification in the Condensed Consolidated Balance Sheets | September 30, | December 31, | |||||||||||||||
2013 | 2012 | ||||||||||||||||
Cash and cash equivalents | $ | 7,830 | $ | 2,887 | |||||||||||||
Marketable securities | 14,277 | 20,804 | |||||||||||||||
Other assets — noncurrent | 91 | 54 | |||||||||||||||
Restricted investments | 3,407 | — | |||||||||||||||
Total available-for-sale investments | $ | 25,605 | $ | 23,745 | |||||||||||||
Cash and cash equivalents in the table above excludes cash of $451 million and $370 million as of September 30, 2013, and December 31, 2012, respectively. Restricted investments in the table above excludes $4 million of interest receivable related to ATL Holdings as of September 30, 2013. | |||||||||||||||||
The fair values of available-for-sale interest-bearing security investments by contractual maturity, except for mortgage- and asset- backed securities that do not have a single maturity date, were as follows (in millions): | |||||||||||||||||
Contractual maturity | September 30, | December 31, | |||||||||||||||
2013 | 2012 | ||||||||||||||||
Maturing in one year or less | $ | 10,820 | $ | 7,175 | |||||||||||||
Maturing after one year through three years | 4,671 | 5,014 | |||||||||||||||
Maturing after three years through five years | 5,742 | 6,286 | |||||||||||||||
Maturing after five years through ten years | 1,432 | 1,620 | |||||||||||||||
Mortgage- and asset-backed securities | 2,849 | 3,596 | |||||||||||||||
Total interest-bearing securities | $ | 25,514 | $ | 23,691 | |||||||||||||
For the three months ended September 30, 2013 and 2012, realized gains totaled $24 million and $31 million, respectively, and realized losses totaled $26 million and $11 million, respectively. For the nine months ended September 30, 2013 and 2012, realized gains totaled $142 million and $147 million, respectively, and realized losses totaled $70 million and $41 million, respectively. The cost of securities sold is based on the specific identification method. Substantially all of our available-for-sale investments that were in an unrealized loss position, which totaled $160 million as of September 30, 2013, have been in a continuous unrealized loss position for less than 12 months. These investments had an aggregate fair value of $8.5 billion as of September 30, 2013. | |||||||||||||||||
The primary objective of our investment portfolio is to enhance overall returns in an efficient manner while maintaining safety of principal, prudent levels of liquidity and acceptable levels of risk. Our investment policy limits interest-bearing security investments to certain types of debt and money market instruments issued by institutions with primarily investment grade credit ratings and places restrictions on maturities and concentration by asset class and issuer. | |||||||||||||||||
We review our available-for-sale investments for other-than-temporary declines in fair value below our cost basis each quarter and whenever events or changes in circumstances indicate that the cost basis of an asset may not be recoverable. This evaluation is based on a number of factors, including the length of time and the extent to which the fair value has been below our cost basis and adverse conditions related specifically to the security, including any changes to the credit rating of the security. As of September 30, 2013, and December 31, 2012, we believe the cost bases for our available-for-sale investments were recoverable in all material respects. |
Inventories
Inventories | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories | Inventories | |||||||
Inventories consisted of the following (in millions): | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Raw materials | $ | 218 | $ | 192 | ||||
Work in process | 1,807 | 1,723 | ||||||
Finished goods | 813 | 829 | ||||||
Total inventories | $ | 2,838 | $ | 2,744 | ||||
Financing_arrangements
Financing arrangements | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Financing arrangements | Financing arrangements | |||||||
The carrying values and the fixed contractual coupon rates of our long-term borrowings were as follows (in millions): | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
0.375% convertible notes due 2013 (0.375% 2013 Convertible Notes) | $ | — | $ | 2,488 | ||||
1.875% notes due 2014 (1.875% 2014 Notes) | 1,000 | 1,000 | ||||||
4.85% notes due 2014 (4.85% 2014 Notes) | 1,000 | 1,000 | ||||||
2.30% notes due 2016 (2.30% 2016 Notes) | 749 | 749 | ||||||
2.50% notes due 2016 (2.50% 2016 Notes) | 999 | 999 | ||||||
2.125% notes due 2017 (2.125% 2017 Notes) | 1,248 | 1,248 | ||||||
5.85% notes due 2017 (5.85% 2017 Notes) | 1,099 | 1,099 | ||||||
6.15% notes due 2018 (6.15% 2018 Notes) | 500 | 499 | ||||||
Master Repurchase Agreement obligation due 2018 | 3,100 | — | ||||||
4.375% euro-denominated notes due 2018 (4.375% 2018 euro Notes) | 741 | 723 | ||||||
5.70% notes due 2019 (5.70% 2019 Notes) | 999 | 999 | ||||||
2.125% euro-denominated notes due 2019 (2.125% 2019 euro Notes) | 910 | 887 | ||||||
4.50% notes due 2020 (4.50% 2020 Notes) | 300 | 300 | ||||||
3.45% notes due 2020 (3.45% 2020 Notes) | 898 | 897 | ||||||
4.10% notes due 2021 (4.10% 2021 Notes) | 998 | 998 | ||||||
3.875% notes due 2021 (3.875% 2021 Notes) | 1,746 | 1,745 | ||||||
3.625% notes due 2022 (3.625% 2022 Notes) | 747 | 747 | ||||||
5.50% pound-sterling-denominated notes due 2026 (5.50% 2026 pound sterling Notes) | 763 | 763 | ||||||
4.00% pound-sterling-denominated notes due 2029 (4.00% 2029 pound sterling Notes) | 1,118 | 1,117 | ||||||
6.375% notes due 2037 (6.375% 2037 Notes) | 899 | 899 | ||||||
6.90% notes due 2038 (6.90% 2038 Notes) | 499 | 499 | ||||||
6.40% notes due 2039 (6.40% 2039 Notes) | 996 | 996 | ||||||
5.75% notes due 2040 (5.75% 2040 Notes) | 697 | 697 | ||||||
4.95% notes due 2041 (4.95% 2041 Notes) | 596 | 595 | ||||||
5.15% notes due 2041 (5.15% 2041 Notes) | 2,232 | 2,232 | ||||||
5.65% notes due 2042 (5.65% 2042 Notes) | 1,244 | 1,244 | ||||||
5.375% notes due 2043 (5.375% 2043 Notes) | 1,000 | 1,000 | ||||||
Other notes | 111 | 109 | ||||||
Total debt | 27,189 | 26,529 | ||||||
Less current portion | (11 | ) | (2,495 | ) | ||||
Total noncurrent debt | $ | 27,178 | $ | 24,034 | ||||
In connection with the acquisition of Onyx Pharmaceuticals, Inc. (Onyx), we entered into a Master Repurchase Agreement and a Term Loan Credit Facility described below. See Note 12, Subsequent event. | ||||||||
Master Repurchase Agreement | ||||||||
We entered into a Master Repurchase Agreement (Repurchase Agreement) pursuant to which Amgen sold 34,097 Class A preferred shares of one of its wholly-owned subsidiaries, ATL Holdings, to the counterparty on September 30, 2013. The Class A preferred shares have a liquidation preference of $100,000 per share. Pursuant to the Repurchase Agreement, we are obligated to repurchase the Class A preferred shares from the counterparty for the aggregate sale price of $3.1 billion, plus any accrued and unpaid payment obligations described below, on September 28, 2018. The $3.1 billion obligation to repurchase the preferred shares is accounted for as long-term debt on our Condensed Consolidated Balance Sheet. Debt issuance costs of $26 million incurred with respect to this transaction will be amortized over the life of the Repurchase Agreement. | ||||||||
Under the Repurchase Agreement, we are obligated to make payments to the counterparty based on the sale price of the outstanding preferred shares at a floating interest rate based on the London Interbank Offered Rate (LIBOR) plus 1.1%. The Repurchase Agreement contains customary events of default, and we have the right to repurchase all or a portion of the Class A preferred shares at any time prior to September 28, 2018, the required repurchase date for the Class A preferred shares. | ||||||||
Term Loan Credit Facility | ||||||||
On October 1, 2013, we borrowed $5.0 billion under a Term Loan Credit Facility which bears interest at a floating rate based on LIBOR plus additional interest, initially 1%, which can vary based on the credit ratings assigned to our long-term debt by Standard & Poor’s Financial Services LLC (S&P) and Moody’s Investor Service, Inc. (Moody’s). A portion of the principal amount of this debt is to be repaid at the end of each quarter equal to 2.5% of the original amount of the loan, or $125 million, with the balance due on October 1, 2018. The outstanding balance of this loan may be prepaid in whole or in part at any time without penalty. This credit facility includes the same financial covenant as our revolving credit facility with respect to our level of borrowings in relation to our equity, as defined. | ||||||||
Convertible notes | ||||||||
In February 2013, our 0.375% 2013 Convertible Notes matured/converted, and accordingly, the $2.5 billion principal amount was settled in cash. We also elected to pay the note holders who converted their notes $99 million of cash for the conversion value that exceeded the principal amount of the notes, as allowed under the original terms of the notes. As a result of this conversion, we received $99 million of cash from the counterparty to the related convertible note hedge to offset the corresponding payment to the convertible note holders. In addition, on May 1, 2013, warrants to acquire 32 million shares of our common stock at an exercise price of $104.80 originally sold in connection with the issuance of the 0.375% 2013 Convertible Notes were exercised, resulting in a net cash payment of $100 million. |
Stockholders_equity
Stockholders' equity | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||
Stockholders' equity | Stockholders’ equity | |||||||||||||||||||
Stock repurchase program | ||||||||||||||||||||
Activity under our stock repurchase program was as follows (in millions): | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Shares | Dollars | Shares | Dollars | |||||||||||||||||
First quarter | 9.1 | $ | 771 | 21 | $ | 1,429 | ||||||||||||||
Second quarter | — | — | 17.4 | 1,203 | ||||||||||||||||
Third quarter | — | — | 9.7 | 797 | ||||||||||||||||
Total stock repurchases | 9.1 | $ | 771 | 48.1 | $ | 3,429 | ||||||||||||||
As of September 30, 2013, $1.6 billion remained available under our Board of Directors-approved stock repurchase program. | ||||||||||||||||||||
Dividends | ||||||||||||||||||||
On December 13, 2012, the Board of Directors declared a quarterly cash dividend of $0.47 per share of common stock, which was paid on March 7, 2013. On March 6, 2013, the Board of Directors declared a quarterly cash dividend of $0.47 per share of common stock, which was paid on June 7, 2013. On July 26, 2013, the Board of Directors declared a quarterly cash dividend of $0.47 per share of common stock, which was paid on September 6, 2013. On October 16, 2013, the Board of Directors declared a quarterly cash dividend of $0.47 per share of common stock, which will be paid on December 6, 2013 to all stockholders of record as of the close of business on November 14, 2013. | ||||||||||||||||||||
Accumulated other comprehensive income | ||||||||||||||||||||
The components of AOCI were as follows (in millions): | ||||||||||||||||||||
Foreign | Cash flow | Available-for-sale | Other | AOCI | ||||||||||||||||
currency | hedges | securities | ||||||||||||||||||
translation | ||||||||||||||||||||
Balance as of December 31, 2012 | $ | 12 | $ | (35 | ) | $ | 183 | $ | (14 | ) | $ | 146 | ||||||||
Foreign currency translation adjustments | (36 | ) | — | — | — | (36 | ) | |||||||||||||
Unrealized gains (losses) | — | (25 | ) | (32 | ) | 1 | (56 | ) | ||||||||||||
Reclassification adjustments to income | — | 144 | (67 | ) | — | 77 | ||||||||||||||
Income taxes | 13 | (44 | ) | 37 | — | 6 | ||||||||||||||
Balance as of March 31, 2013 | (11 | ) | 40 | 121 | (13 | ) | 137 | |||||||||||||
Foreign currency translation adjustments | (39 | ) | — | — | — | (39 | ) | |||||||||||||
Unrealized gains (losses) | — | 53 | (318 | ) | — | (265 | ) | |||||||||||||
Reclassification adjustments to income | — | (18 | ) | (7 | ) | — | (25 | ) | ||||||||||||
Income taxes | 14 | (13 | ) | 120 | — | 121 | ||||||||||||||
Balance as of June 30, 2013 | (36 | ) | 62 | (84 | ) | (13 | ) | (71 | ) | |||||||||||
Foreign currency translation adjustments | 18 | — | — | — | 18 | |||||||||||||||
Unrealized gains (losses) | — | 26 | 74 | (2 | ) | 98 | ||||||||||||||
Reclassification adjustments to income | — | (159 | ) | 2 | — | (157 | ) | |||||||||||||
Income taxes | (6 | ) | 49 | (28 | ) | — | 15 | |||||||||||||
Balance as of September 30, 2013 | $ | (24 | ) | $ | (22 | ) | $ | (36 | ) | $ | (15 | ) | $ | (97 | ) | |||||
The reclassifications out of AOCI to Net income were as follows (in millions): | ||||||||||||||||||||
Amounts reclassified out of AOCI | ||||||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||||||
Components of AOCI | 30-Sep-13 | 30-Sep-13 | Line item affected in the Statements of Income | |||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||
Foreign currency contract gains | $ | 6 | $ | 9 | Product sales | |||||||||||||||
Cross-currency swap contract gains | 153 | 25 | Interest and other income, net | |||||||||||||||||
Forward interest rate contract losses | — | (1 | ) | Interest expense, net | ||||||||||||||||
159 | 33 | Total before income tax | ||||||||||||||||||
(59 | ) | (13 | ) | Tax (expense)/benefit | ||||||||||||||||
$ | 100 | $ | 20 | Net of taxes | ||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||
Net realized gains (losses) | $ | (2 | ) | $ | 72 | Interest and other income, net | ||||||||||||||
1 | (27 | ) | Tax (expense)/benefit | |||||||||||||||||
$ | (1 | ) | $ | 45 | Net of taxes | |||||||||||||||
Fair_value_measurement
Fair value measurement | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair value measurement | Fair value measurement | ||||||||||||||||
To estimate the fair value of our financial assets and liabilities we use valuation approaches within a hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the inputs that market participants would use in pricing the asset or liability and are developed based on the best information available in the circumstances. The fair value hierarchy is divided into three levels based on the source of inputs as follows: | |||||||||||||||||
Level 1 | — | Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access | |||||||||||||||
Level 2 | — | Valuations for which all significant inputs are observable, either directly or indirectly, other than level 1 inputs | |||||||||||||||
Level 3 | — | Valuations based on inputs that are unobservable and significant to the overall fair value measurement | |||||||||||||||
The availability of observable inputs can vary among the various types of financial assets and liabilities. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. In certain cases, the inputs used for measuring fair value may fall into different levels of the fair value hierarchy. In such cases, for financial statement disclosure purposes, the level in the fair value hierarchy within which the fair value measurement is categorized is based on the lowest level of input used that is significant to the overall fair value measurement. | |||||||||||||||||
The fair value of each major class of the Company’s financial assets and liabilities measured at fair value on a recurring basis was as follows (in millions): | |||||||||||||||||
Quoted prices in | Significant | Significant | |||||||||||||||
active markets for | other observable | unobservable | |||||||||||||||
Fair value measurement | identical assets | inputs | inputs | ||||||||||||||
as of September 30, 2013, using: | (Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||
Assets: | |||||||||||||||||
Available-for-sale investments: | |||||||||||||||||
U.S. Treasury securities | $ | 6,173 | $ | — | $ | — | $ | 6,173 | |||||||||
Other government-related debt securities: | |||||||||||||||||
U.S. | — | 1,122 | — | 1,122 | |||||||||||||
Foreign and other | — | 1,208 | — | 1,208 | |||||||||||||
Corporate debt securities: | |||||||||||||||||
Financial | — | 3,460 | — | 3,460 | |||||||||||||
Industrial | — | 3,458 | — | 3,458 | |||||||||||||
Other | — | 337 | — | 337 | |||||||||||||
Residential mortgage-backed securities | — | 1,397 | — | 1,397 | |||||||||||||
Other mortgage- and asset-backed securities | — | 1,452 | — | 1,452 | |||||||||||||
Money market mutual funds | 6,907 | — | — | 6,907 | |||||||||||||
Equity securities | 91 | — | — | 91 | |||||||||||||
Derivatives: | |||||||||||||||||
Foreign currency contracts | — | 36 | — | 36 | |||||||||||||
Cross-currency swap contracts | — | 133 | — | 133 | |||||||||||||
Interest rate swap contracts | — | 13 | — | 13 | |||||||||||||
Total assets | $ | 13,171 | $ | 12,616 | $ | — | $ | 25,787 | |||||||||
Liabilities: | |||||||||||||||||
Derivatives: | |||||||||||||||||
Foreign currency contracts | $ | — | $ | 71 | $ | — | $ | 71 | |||||||||
Cross-currency swap contracts | — | 7 | — | 7 | |||||||||||||
Interest rate swap contracts | — | 97 | — | 97 | |||||||||||||
Contingent consideration obligations in connection with a business combination | — | — | 332 | 332 | |||||||||||||
Total liabilities | $ | — | $ | 175 | $ | 332 | $ | 507 | |||||||||
Quoted prices in | Significant | Significant | |||||||||||||||
active markets for | other observable | unobservable | |||||||||||||||
Fair value measurement | identical assets | inputs | inputs | ||||||||||||||
as of December 31, 2012, using: | (Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||
Assets: | |||||||||||||||||
Available-for-sale investments: | |||||||||||||||||
U.S. Treasury securities | $ | 4,458 | $ | — | $ | — | $ | 4,458 | |||||||||
Other government-related debt securities: | |||||||||||||||||
U.S. | — | 1,030 | — | 1,030 | |||||||||||||
Foreign and other | — | 1,608 | — | 1,608 | |||||||||||||
Corporate debt securities: | |||||||||||||||||
Financial | — | 3,361 | — | 3,361 | |||||||||||||
Industrial | — | 4,380 | — | 4,380 | |||||||||||||
Other | — | 452 | — | 452 | |||||||||||||
Residential mortgage-backed securities | — | 1,829 | — | 1,829 | |||||||||||||
Other mortgage- and asset-backed securities | — | 1,767 | — | 1,767 | |||||||||||||
Money market mutual funds | 2,620 | — | — | 2,620 | |||||||||||||
Other short-term interest-bearing securities | — | 2,186 | — | 2,186 | |||||||||||||
Equity securities | 54 | — | — | 54 | |||||||||||||
Derivatives: | |||||||||||||||||
Foreign currency contracts | — | 46 | — | 46 | |||||||||||||
Cross-currency swap contracts | — | 65 | — | 65 | |||||||||||||
Total assets | $ | 7,132 | $ | 16,724 | $ | — | $ | 23,856 | |||||||||
Liabilities: | |||||||||||||||||
Derivatives: | |||||||||||||||||
Foreign currency contracts | $ | — | $ | 59 | $ | — | $ | 59 | |||||||||
Cross-currency swap contracts | — | 6 | — | 6 | |||||||||||||
Contingent consideration obligations in connection with a business combination | — | — | 221 | 221 | |||||||||||||
Total liabilities | $ | — | $ | 65 | $ | 221 | $ | 286 | |||||||||
The fair values of our U.S. Treasury securities, money market mutual funds and equity securities are based on quoted market prices in active markets with no valuation adjustment. | |||||||||||||||||
Most of our other government-related and corporate debt securities are investment grade with maturity dates of five years or less from the balance sheet date. Our other government-related debt securities portfolio is composed of securities with weighted-average credit ratings of A+ by S&P, AA- or equivalent by Moody's or Fitch, Inc. (Fitch); and our corporate debt securities portfolio has a weighted-average credit rating of A- or equivalent by S&P, BBB+ by Moody's or Fitch. We estimate the fair values of these securities by taking into consideration valuations obtained from third-party pricing services. The pricing services utilize industry standard valuation models, including both income- and market-based approaches, for which all significant inputs are observable, either directly or indirectly, to estimate fair value. These inputs include reported trades of and broker/dealer quotes on the same or similar securities; issuer credit spreads; benchmark securities; and other observable inputs. | |||||||||||||||||
Our residential mortgage-, other mortgage- and asset-backed securities portfolio is composed entirely of senior tranches, with credit ratings of AAA by S&P, Moody's or Fitch. We estimate the fair values of these securities by taking into consideration valuations obtained from third-party pricing services. The pricing services utilize industry standard valuation models, including both income- and market-based approaches, for which all significant inputs are observable, either directly or indirectly, to estimate fair value. These inputs include reported trades of and broker/dealer quotes on the same or similar securities; issuer credit spreads; benchmark securities; prepayment/default projections based on historical data; and other observable inputs. | |||||||||||||||||
We value our other short-term interest-bearing securities at amortized cost, which approximates fair value given their near term maturity dates. | |||||||||||||||||
All of our foreign currency forward and option derivatives contracts have maturities of three years or less and all are with counterparties that have minimum credit ratings of A- or equivalent by S&P, Moody’s or Fitch. We estimated the fair values of these contracts by taking into consideration valuations obtained from a third-party valuation service that utilizes an income-based industry standard valuation model for which all significant inputs are observable, either directly or indirectly. These inputs include foreign currency rates, LIBOR cash and swap rates and obligor credit default swap rates. In addition, inputs for our foreign currency option contracts also include implied volatility measures. These inputs, where applicable, are at commonly quoted intervals. See Note 10, Derivative instruments. | |||||||||||||||||
Our cross-currency swap contracts are with counterparties that have minimum credit ratings of A- or equivalent by S&P, Moody’s or Fitch. We estimated the fair values of these contracts by taking into consideration valuations obtained from a third-party valuation service that utilizes an income-based industry standard valuation model for which all significant inputs are observable either directly or indirectly. These inputs include foreign currency exchange rates, LIBOR, swap rates, obligor credit default swap rates and cross-currency basis swap spreads. See Note 10, Derivative instruments. | |||||||||||||||||
Our interest rate swap contracts are with counterparties that have minimum credit ratings of A- or equivalent by S&P, Moody’s or Fitch. We estimated the fair values of these contracts by using an income-based industry standard valuation model for which all significant inputs were observable either directly or indirectly. These inputs included LIBOR, swap rates and obligor credit default swap rates. See Note 10, Derivative instruments. | |||||||||||||||||
As a result of our acquisition of BioVex Group, Inc. in March 2011, we are obligated to pay its former shareholders up to $575 million of additional consideration contingent upon achieving up to eight separate regulatory and sales-related milestones with regard to talimogene laherparepvec, which was acquired in the acquisition and is currently in phase 3 clinical development for the treatment of melanoma. The three largest of these potential payments are $125 million each, including the amount due if a Biologics License Application (BLA) is filed with the U.S. Food and Drug Administration (FDA). Potential payments are also due upon the first commercial sale in each of the United States and the European Union (EU) following receipt of marketing approval which includes use of the product in specified patient populations and upon achievement of specified levels of sales within specified periods of time. | |||||||||||||||||
These contingent consideration obligations are recorded at their estimated fair values with any changes in fair value recognized in earnings. The fair value measurements of these obligations are based on significant unobservable inputs, including the estimated probabilities and timing of achieving the related regulatory and commercial events in connection with these milestones and, as applicable, estimated annual sales. Significant changes (increases or decreases) in these inputs would result in corresponding changes in the fair values of the contingent consideration obligations. | |||||||||||||||||
We revalue these contingent consideration obligations each reporting period until the related contingencies are resolved. We estimate the fair values of these obligations by using a combination of probability-adjusted discounted cash flows, option pricing techniques and a simulation model of expected annual sales. Quarterly, management in our R&D and commercial sales organizations review key assumptions used in the fair value measurements of these obligations. In the absence of any significant changes in key assumptions, the changes in fair values of these contingent consideration obligations reflect the passage of time and changes in our credit risk adjusted rate used to discount obligations to present value. During the three months ended June 30, 2013, there were increases in management's estimates of the probabilities of completing the BLA filing and receiving approval to market talimogene laherparepvec in specified patient populations in the United States and EU. Due primarily to these changes in key assumptions, the estimated aggregate fair value of the contingent consideration obligations increased $111 million during the nine months ended September 30, 2013. There was no change in the estimated aggregate fair value of the contingent consideration obligations during the three months ended September 30, 2013. During the three and nine months ended September 30, 2012, the estimated aggregate fair value of the contingent consideration obligations increased $2 million and $5 million, respectively. Changes in contingent consideration obligations were recorded in Other operating expenses in the Condensed Consolidated Statements of Income. | |||||||||||||||||
There have been no transfers of assets or liabilities between the fair value measurement levels, and there were no material remeasurements to fair value during the nine months ended September 30, 2013 and 2012, of assets and liabilities that are not measured at fair value on a recurring basis. | |||||||||||||||||
Summary of the fair value of other financial instruments | |||||||||||||||||
Cash equivalents | |||||||||||||||||
The estimated fair values of cash equivalents approximate their carrying values due to the short-term nature of these financial instruments. | |||||||||||||||||
Borrowings | |||||||||||||||||
We estimated the fair values of our long-term notes (Level 2) by taking into consideration indicative prices obtained from a third-party financial institution that utilizes industry standard valuation models, including both income- and market-based approaches, for which all significant inputs are observable either directly or indirectly. These inputs include reported trades of and broker/dealer quotes on the same or similar securities; credit spreads; benchmark yields; foreign currency exchange rates, as applicable; and other observable inputs. As of September 30, 2013, and December 31, 2012, the aggregate fair values of our long-term debt were $28.3 billion and $29.9 billion, respectively, and the carrying values were $27.2 billion and $26.5 billion, respectively. |
Derivative_instruments
Derivative instruments | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||
Derivative instruments | Derivative instruments | ||||||||||||||||||
The Company is exposed to foreign currency exchange rate and interest rate risks related to its business operations. To reduce our risks related to these exposures, we utilize or have utilized certain derivative instruments, including foreign currency forward, foreign currency option, cross-currency swap, forward interest rate and interest rate swap contracts. We do not use derivatives for speculative trading purposes. | |||||||||||||||||||
Cash flow hedges | |||||||||||||||||||
We are exposed to possible changes in the values of certain anticipated foreign currency cash flows resulting from changes in foreign currency exchange rates, associated primarily with our euro-denominated international product sales. Increases and decreases in the cash flows associated with our international product sales due to movements in foreign currency exchange rates are offset partially by the corresponding increases and decreases in our international operating expenses resulting from these foreign currency exchange rate movements. To further reduce our exposure to foreign currency exchange rate fluctuations on our international product sales, we enter into foreign currency forward and option contracts to hedge a portion of our projected international product sales primarily over a three-year time horizon, with, at any given point in time, a higher percentage of nearer-term projected product sales being hedged than in successive periods. As of September 30, 2013, and December 31, 2012, we had open foreign currency forward contracts with notional amounts of $3.8 billion and $3.7 billion, respectively, and open foreign currency option contracts with notional amounts of $210 million and $200 million, respectively. These foreign currency forward and option contracts, primarily euro based, have been designated as cash flow hedges, and accordingly, the effective portions of the unrealized gains and losses on these contracts are reported in AOCI in the Condensed Consolidated Balance Sheets and reclassified to earnings in the same periods during which the hedged transactions affect earnings. | |||||||||||||||||||
To hedge our exposure to foreign currency exchange rate risk associated with certain of our long-term notes denominated in foreign currencies, we entered into cross-currency swap contracts. Under the terms of these contracts, we paid euros/pounds sterling and received U.S. dollars for the notional amounts at the inception of the contracts, and we exchange interest payments based on these notional amounts at fixed rates over the lives of the contracts in which we pay U.S. dollars and receive euros/pounds sterling. In addition, we will pay U.S. dollars to and receive euros/pounds sterling from the counterparties at the maturities of the contracts for these same notional amounts. The terms of these contracts correspond to the related hedged notes, effectively converting the interest payments and principal repayment on these notes from euros/pounds sterling to U.S. dollars. These cross-currency swap contracts have been designated as cash flow hedges, and accordingly, the effective portions of the unrealized gains and losses on these contracts are reported in AOCI and reclassified to earnings in the same periods during which the hedged debt affects earnings. The notional amounts and interest rates of our cross-currency swaps are as follows (notional amounts in millions): | |||||||||||||||||||
Foreign currency | U.S. dollars | ||||||||||||||||||
Hedged notes | Notional Amount | Interest rate | Notional Amount | Interest rate | |||||||||||||||
2.125% 2019 euro Notes | € | 675 | 2.125 | % | $ | 864 | 2.6 | % | |||||||||||
5.50% 2026 pound sterling Notes | £ | 475 | 5.5 | % | $ | 748 | 5.8 | % | |||||||||||
4.00% 2029 pound sterling Notes | £ | 700 | 4 | % | $ | 1,122 | 4.3 | % | |||||||||||
In connection with the anticipated issuance of long-term fixed-rate debt, we occasionally enter into forward interest rate contracts in order to hedge the variability in cash flows due to changes in the applicable Treasury rate between the time we enter into these contracts and the time the related debt is issued. Gains and losses on such contracts, which are designated as cash flow hedges, are reported in AOCI and amortized into earnings over the lives of the associated debt issuances. | |||||||||||||||||||
The effective portion of the unrealized gain/(loss) recognized in other comprehensive income for our derivative instruments designated as cash flow hedges was as follows (in millions): | |||||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||
Derivatives in cash flow hedging relationships | 2013 | 2012 | 2013 | 2012 | |||||||||||||||
Foreign currency contracts | $ | (137 | ) | $ | (127 | ) | $ | (16 | ) | $ | (25 | ) | |||||||
Cross-currency swap contracts | 163 | 38 | 70 | 11 | |||||||||||||||
Forward interest rate contracts | — | — | — | (7 | ) | ||||||||||||||
Total | $ | 26 | $ | (89 | ) | $ | 54 | $ | (21 | ) | |||||||||
The location in the Condensed Consolidated Statements of Income and the effective portion of the gain/(loss) reclassified out of AOCI into earnings for our derivative instruments designated as cash flow hedges were as follows (in millions): | |||||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||
Derivatives in cash flow hedging relationships | Statements of Income location | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Foreign currency contracts | Product sales | $ | 6 | $ | 38 | $ | 9 | $ | 67 | ||||||||||
Cross-currency swap contracts | Interest and other income, net | 153 | 58 | 25 | 54 | ||||||||||||||
Forward interest rate contracts | Interest expense, net | — | — | (1 | ) | (1 | ) | ||||||||||||
Total | $ | 159 | $ | 96 | $ | 33 | $ | 120 | |||||||||||
No portions of our cash flow hedge contracts are excluded from the assessment of hedge effectiveness, and the gains and losses on the ineffective portions of these hedging instruments were not material for the three and nine months ended September 30, 2013 and 2012. As of September 30, 2013, the amounts expected to be reclassified out of AOCI into earnings over the next 12 months are approximately $20 million of net losses on our foreign currency and cross-currency swap contracts and approximately $1 million of losses on forward interest rate contracts. | |||||||||||||||||||
Fair value hedges | |||||||||||||||||||
To achieve a desired mix of fixed and floating interest rates on our long-term debt, we entered into interest rate swap contracts, which qualified and were designated as fair value hedges. The terms of these interest rate swap contracts corresponded to the related hedged debt instruments and effectively converted a fixed interest rate coupon to a floating LIBOR-based coupon over the lives of the respective notes. Due to historically low interest rates, during the three months ended June 30, 2012, we terminated our interest rate swap contracts with an aggregate notional amount of $3.6 billion with respect to our 4.85% 2014 Notes, 5.85% 2017 Notes, 6.15% 2018 Notes and 5.70% 2019 Notes with rates that ranged from LIBOR plus 0.3% to LIBOR plus 2.6%. | |||||||||||||||||||
During the three months ended March 31, 2013, we entered into interest rate swap contracts with an aggregate notional amount of $2.5 billion with respect to our 3.875% 2021 Notes and our 3.625% 2022 Notes. During the three months ended June 30, 2013, we entered into interest rate swap contracts with an aggregate notional amount of $1.9 billion with respect to our 3.45% 2020 Notes and our 4.10% 2021 Notes. The contracts have rates that range from three-month LIBOR plus 1.1% to three-month LIBOR plus 2.0%. | |||||||||||||||||||
For derivative instruments that are designated and qualify as fair value hedges, the unrealized gain or loss on the derivative resulting from the change in fair value during the period as well as the offsetting unrealized loss or gain of the hedged item resulting from the change in fair value during the period attributable to the hedged risk is recognized in current earnings. For the three and nine months ended September 30, 2013, we included the unrealized losses on the hedged debt of $7 million and gains of $84 million, respectively, in the same line item, Interest expense, net, in the Condensed Consolidated Statements of Income, as the offsetting unrealized gains of $7 million and losses of $84 million, respectively, on the related interest rate swap contracts. For the nine months ended September 30, 2012, we included the unrealized losses on the hedged debt of $20 million in the same line item, Interest expense, net, in the Condensed Consolidated Statements of Income, as the offsetting unrealized gains of $20 million on the related interest rate swap contracts. | |||||||||||||||||||
Derivatives not designated as hedges | |||||||||||||||||||
We enter into foreign currency forward contracts that are not designated as hedging transactions to reduce our exposure to foreign currency fluctuations of certain assets and liabilities denominated in foreign currencies. These exposures are hedged on a month-to-month basis. As of September 30, 2013, and December 31, 2012, the total notional amounts of these foreign currency forward contracts were $694 million and $629 million, respectively. | |||||||||||||||||||
The location in the Condensed Consolidated Statements of Income and the amount of gain/(loss) recognized in earnings for our derivative instruments not designated as hedging instruments were as follows (in millions): | |||||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||
Derivatives not designated as hedging instruments | Statements of Income location | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Foreign currency contracts | Interest and other income, net | $ | 15 | $ | 3 | $ | 10 | $ | 13 | ||||||||||
The fair values of derivatives included in the Condensed Consolidated Balance Sheets were as follows (in millions): | |||||||||||||||||||
Derivative assets | Derivative liabilities | ||||||||||||||||||
30-Sep-13 | Balance Sheet location | Fair value | Balance Sheet location | Fair value | |||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||
Cross-currency swap contracts | Other current assets/ Other noncurrent assets | $ | 133 | Accrued liabilities/ Other noncurrent liabilities | $ | 7 | |||||||||||||
Foreign currency contracts | Other current assets/ Other noncurrent assets | 36 | Accrued liabilities/ Other noncurrent liabilities | 71 | |||||||||||||||
Interest rate swap contracts | Other current assets/ Other noncurrent assets | 13 | Accrued liabilities/ Other noncurrent liabilities | 97 | |||||||||||||||
Total derivatives designated as hedging instruments | 182 | 175 | |||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||
Foreign currency contracts | Other current assets | — | Accrued liabilities | — | |||||||||||||||
Total derivatives not designated as hedging instruments | — | — | |||||||||||||||||
Total derivatives | $ | 182 | $ | 175 | |||||||||||||||
Derivative assets | Derivative liabilities | ||||||||||||||||||
31-Dec-12 | Balance Sheet | Fair value | Balance Sheet | Fair value | |||||||||||||||
location | location | ||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||
Cross-currency swap contracts | Other current assets/ Other noncurrent assets | $ | 65 | Accrued liabilities/ Other noncurrent liabilities | $ | 6 | |||||||||||||
Foreign currency contracts | Other current assets/ Other noncurrent assets | 45 | Accrued liabilities/ Other noncurrent liabilities | 58 | |||||||||||||||
Total derivatives designated as hedging instruments | 110 | 64 | |||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||
Foreign currency contracts | Other current assets | 1 | Accrued liabilities | 1 | |||||||||||||||
Total derivatives not designated as hedging instruments | 1 | 1 | |||||||||||||||||
Total derivatives | $ | 111 | $ | 65 | |||||||||||||||
Our derivative contracts that were in liability positions as of September 30, 2013, contain certain credit-risk-related contingent provisions that would be triggered if: (i) we were to undergo a change in control and (ii) our or the surviving entity’s creditworthiness deteriorates, which is generally defined as having either a credit rating that is below investment grade or a materially weaker creditworthiness after the change in control. If these events were to occur, the counterparties would have the right, but not the obligation, to close the contracts under early-termination provisions. In such circumstances, the counterparties could request immediate settlement of these contracts for amounts that approximate the then current fair values of the contracts. In addition, our derivative contracts are not subject to any type of master netting arrangement, and amounts due to or from a counterparty under these contracts may only be offset against other amounts due to or from the same counterparty if an event of default or termination, as defined, were to occur. | |||||||||||||||||||
The cash flow effects of our derivatives contracts for the nine months ended September 30, 2013 and 2012, are included within Net cash provided by operating activities in the Condensed Consolidated Statements of Cash Flows. |
Contingencies_and_commitments
Contingencies and commitments | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and commitments | Contingencies and commitments |
Contingencies | |
In the ordinary course of business, we are involved in various legal proceedings and other matters, including those discussed in this Note, that are complex in nature and have outcomes that are difficult to predict. See Note 18, Contingencies and commitments to our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2012, and Note 11, Contingencies and commitments to our condensed consolidated financial statements in our Quarterly Reports on Form 10-Q for the periods ended March 31, 2013 and June 30, 2013 for further discussion of certain of our legal proceedings and other matters. | |
We record accruals for loss contingencies to the extent that we conclude that it is probable that a liability has been incurred and the amount of the related loss can be reasonably estimated. We evaluate, on a quarterly basis, developments in legal proceedings and other matters that could cause an increase or decrease in the amount of the liability that has been accrued previously. | |
Our legal proceedings range from cases brought by a single plaintiff to class actions with thousands of putative class members. These legal proceedings, as well as other matters, involve various aspects of our business and a variety of claims (including but not limited to patent infringement, marketing, pricing and trade practices and securities law), some of which present novel factual allegations and/or unique legal theories. In each of the matters described in this filing, in Note 18 to our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2012, or in Note 11 to our condensed consolidated financial statements in our Quarterly Reports on Form 10-Q for the periods ended March 31, 2013, and June 30, 2013, plaintiffs seek an award of a not-yet-quantified amount of damages or an amount that is not material. In addition, a number of the matters pending against us are at very early stages of the legal process (which in complex proceedings of the sort faced by us often extend for several years). As a result, none of the matters described in these filings have progressed sufficiently through discovery and/or development of important factual information and legal issues to enable us to estimate a range of possible loss, if any, or such amounts are not material. While it is not possible to accurately predict or determine the eventual outcomes of these items, an adverse determination in one or more of these items currently pending could have a material adverse effect on our consolidated results of operations, financial position or cash flows. | |
Certain recent developments concerning our legal proceedings and other matters are discussed below: | |
Sandoz Patent Litigation | |
As previously disclosed, Sandoz, Inc. filed a complaint against Amgen and Hoffman-La Roche, Inc. (Roche) alleging that U.S. Patent Nos. 8,063,182 and 8,163,522 are invalid and seeking a declaratory judgment of non-infringement, invalidity and unenforceability of the '182 and '522 patents. On August 16, 2013, Amgen and Roche filed a motion to dismiss Sandoz’s complaint for lack of subject matter jurisdiction. A hearing on the motion to dismiss is set for November 15, 2013. | |
Onyx Litigation | |
Between August 28, 2013 and September 16, 2013, nine plaintiffs filed purported class action lawsuits against Onyx, its directors, Amgen and Arena Acquisition Company, and unnamed “John Doe” defendants in connection with Amgen’s acquisition of Onyx. Seven of those purported class actions were brought in the Superior Court of the State of California for the County of San Mateo, captioned Lawrence I. Silverstein and Phil Rosen v. Onyx Pharmaceuticals, Inc., et al. (August 28, 2013) (“Silverstein”), Laura Robinson v. Onyx Pharmaceuticals, Inc., et al. (originally filed in the Superior Court for the County of San Francisco on August 28, 2013, and re-filed in the Superior Court for the County of San Mateo on August 29, 2013) (“Robinson”), John Solak v. Onyx Pharmaceuticals, Inc., et al. (August 30, 2013), Louisiana Municipal Police Employees’ Retirement System and Hubert Chow v. Onyx Pharmaceuticals, Inc., et al. (September 3, 2013) (“Louisiana Municipal”), Laurine Jonopulos v. Onyx Pharmaceuticals, Inc., et al. (September 4, 2013) (“Jonopulos”), Clifford G. Martin v. Onyx Pharmaceuticals, Inc., et al. (September 9, 2013) (“Martin”) and Merrill L. Magowan v. Onyx Pharmaceuticals, Inc. et al. (September 9, 2013) (“Magowan”). The eighth and ninth purported class actions were brought in the Court of Chancery of the State of Delaware, captioned Mark D. Smilow, IRA v. Onyx Pharmaceuticals Inc., et al. (August 29, 2013) and William L. Fitzpatric v. Onyx Pharmaceuticals, Inc., et al. (September 16, 2013) (“Fitzpatric”). On September 5, 2013, the plaintiff in the John Solak case filed a request for dismissal of the case without prejudice. On September 10, 2013, the plaintiff in the Mark D. Smilow, IRA case filed a notice and proposed order of voluntary dismissal of the case without prejudice. On September 10, 2013, plaintiffs in the Silverstein and Louisiana Municipal cases filed an amended complaint alleging substantially the same claims and seeking substantially the same relief as in their individual purported class action lawsuits. Each of the lawsuits alleges that the Onyx director defendants breached their fiduciary duties to Onyx shareholders, and that the other defendants aided and abetted such breaches, by seeking to sell Onyx through an allegedly unfair process and for an unfair price and on unfair terms. The Magowan and Fitzpatric complaints and the amended complaint filed in the Silverstein and Louisiana Municipal cases also allege that the individual defendants breached their fiduciary duties with respect to the contents of the tender offer solicitation material. Each of the lawsuits seeks, among other things, equitable relief that would enjoin the consummation of the proposed merger, rescission of the merger agreement (to the extent it has already been implemented), and attorneys’ fees and costs, and certain of the lawsuits seek other relief. The Silverstein, Robinson, Louisiana Municipal and Jonopulos cases were designated as “complex” and assigned to the Honorable Marie S. Weiner, who subsequently entered an order consolidating the Silverstein, Robinson, Louisiana Municipal, Jonopulos, Martin and Magowan cases. | |
Federal Securities Litigation - In re Amgen Inc. Securities Litigation | |
The trial date for this securities class action lawsuit pending against Amgen has been set by the U.S. District Court for the Central District of California for June 1, 2015. | |
Government Investigations and Qui Tam Actions | |
As previously disclosed, Amgen accrued an immaterial amount to resolve the last remaining Original Qui Tam Action (as defined in Note 18, Contingencies and commitments to our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2012). In September 2013, the U.S. District Court for the Eastern District of New York granted the government’s motion to dismiss the complaint of the relator plaintiffs based on prosecutorial discretion. |
Subsequent_event_Subsequent_ev
Subsequent event Subsequent event | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | |
Subsequent event | Subsequent event |
On October 1, 2013, we completed our acquisition of Onyx, a publicly held biopharmaceutical company engaged in the development and commercialization of innovative therapies for improving the lives of people with cancer, which became a wholly owned subsidiary of Amgen. This transaction, which was accounted for as a business combination, provides us with an important and growing multiple myeloma franchise, with Kyprolis® (carfilzomib) for Injection already approved in the United States, and with oprozomib being evaluated in clinical trials for patients with hematologic malignancies. In addition, Onyx has collaborations with Bayer HealthCare Pharmaceuticals, Inc., for two of Bayer’s marketed oncology products: Nexavar® (sorafenib) tablets, for which Onyx and Bayer have a profit-sharing relationship, and Stivarga® (regorafenib) tablets, for which Onyx receives sales-based royalties from Bayer. Onyx also has a collaboration with Pfizer related to palbociclib, an oncology product being developed by Pfizer for which Onyx will receive sales-based royalties. | |
The net cash consideration to acquire Onyx totaled approximately $9.7 billion which equals a price of $125 per share of common stock. | |
Given the timing of the closing of this transaction, we are currently in the process of valuing the assets acquired and liabilities assumed in the business combination. As a result, we are not yet able to provide the amounts to be recognized as of the acquisition date for the major classes of assets acquired and liabilities assumed and other related disclosures. We will include this and other related information in our 2013 Annual Report on Form 10-K. | |
We financed the transaction with approximately $1.6 billion cash on hand, $3.1 billion in bank debt issued on September 30, 2013, and $5.0 billion in bank debt issued on October 1, 2013. See Note 7, Financing arrangements. |
Summary_of_significant_account1
Summary of significant accounting policies (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | |
Business | Business |
Amgen Inc. (including its subsidiaries, referred to as “Amgen,” “the Company,” “we,” “our” or “us”) is a global biotechnology pioneer that discovers, develops, manufactures and delivers innovative human therapeutics. We operate in one business segment: human therapeutics. | |
Basis of presentation | Basis of presentation |
The financial information for the three and nine months ended September 30, 2013 and 2012, is unaudited but includes all adjustments (consisting of only normal recurring adjustments, unless otherwise indicated), which Amgen considers necessary for a fair presentation of its condensed consolidated results of operations for those periods. Interim results are not necessarily indicative of results for the full fiscal year. | |
Prior-period amounts for amortization of certain acquired intangible assets have been reclassified within Operating expenses in our Condensed Consolidated Statements of Income to conform to the current-period presentation. | |
The condensed consolidated financial statements should be read in conjunction with our consolidated financial statements and the notes thereto contained in our Annual Report on Form 10-K for the year ended December 31, 2012 and in our Quarterly Reports on Form 10-Q for the periods ended March 31, 2013, and June 30, 2013. | |
Principles of consolidation | Principles of consolidation |
The condensed consolidated financial statements include the accounts of Amgen as well as its majority-owned subsidiaries. We do not have any significant interests in any variable interest entities. All material intercompany transactions and balances have been eliminated in consolidation. | |
Use of estimates | Use of estimates |
The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States (GAAP) requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results may differ from those estimates. | |
Product sales for U.S. Federal government stockpiles | Product sales for U.S. federal government stockpiles |
Amgen recognizes revenue from the sales of product to the U.S. federal government for stockpile in accordance with Securities and Exchange Commission (SEC) Interpretation, Commission Guidance Regarding Accounting for Sales of Vaccines and Bioterror Countermeasures to the Federal Government for Placement into the Pediatric Vaccine Stockpile or the Strategic National Stockpile (SNS). We recognized $155 million of revenue for NEUPOGEN® (filgrastim) during the three months ended September 30, 2013, for purchases by the government for the SNS. We are contracted to manage this inventory of product until the government requests shipment. | |
Property, plant and equipment, net | Property, plant and equipment, net |
Property, plant and equipment is recorded at historical cost, net of accumulated depreciation and amortization of $6.8 billion and $6.6 billion as of September 30, 2013, and December 31, 2012, respectively. | |
Restricted investments | Restricted investments |
We have restricted investments on our Condensed Consolidated Balance Sheet that are owned by ATL Holdings Limited (ATL Holdings), a wholly-owned subsidiary. ATL Holdings is an entity distinct from the Company and its other subsidiaries, with separate assets and liabilities. Because a third party owns Class A preferred shares of ATL Holdings, this entity is required to hold restricted cash or investments. See Note 7, Financing arrangements. On September 30, 2013, $2,881 million of marketable securities, $526 million of cash and cash equivalents and $4 million of related interest receivable were reclassified to Restricted investments on our Condensed Consolidated Balance Sheet. | |
Comprehensive income | Comprehensive income |
In January 2013, we adopted a new accounting standard that requires additional disclosures regarding amounts that are reclassified out of accumulated other comprehensive income (AOCI). In accordance with the requirements of the standard, the effects of significant reclassifications out of AOCI, by component, on the respective lines in the Condensed Consolidated Statements of Income are presented in Note 8, Stockholders' equity. The standard was required to be applied prospectively beginning January 1, 2013. |
Earnings_per_share_Tables
Earnings per share (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||
Computation for basic and diluted earnings per share | The computation for basic and diluted EPS was as follows (in millions, except per share data): | |||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Income (Numerator): | ||||||||||||||||
Net income for basic and diluted EPS | $ | 1,368 | $ | 1,107 | $ | 4,060 | $ | 3,557 | ||||||||
Shares (Denominator): | ||||||||||||||||
Weighted-average shares for basic EPS | 754 | 771 | 752 | 779 | ||||||||||||
Effect of dilutive securities | 12 | 12 | 12 | 10 | ||||||||||||
Weighted-average shares for diluted EPS | 766 | 783 | 764 | 789 | ||||||||||||
Basic EPS | $ | 1.81 | $ | 1.44 | $ | 5.4 | $ | 4.57 | ||||||||
Diluted EPS | $ | 1.79 | $ | 1.41 | $ | 5.31 | $ | 4.51 | ||||||||
Availableforsale_investments_T
Available-for-sale investments (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||
Amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of available-for-sale investments by type of security | The amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of available-for-sale investments by type of security were as follows (in millions): | ||||||||||||||||
Type of security as of September 30, 2013 | Amortized | Gross | Gross | Estimated | |||||||||||||
cost | unrealized | unrealized | fair | ||||||||||||||
gains | losses | value | |||||||||||||||
U.S. Treasury securities | $ | 6,172 | $ | 5 | $ | (4 | ) | $ | 6,173 | ||||||||
Other government-related debt securities: | |||||||||||||||||
U.S. | 1,130 | — | (8 | ) | 1,122 | ||||||||||||
Foreign and other | 1,234 | 12 | (38 | ) | 1,208 | ||||||||||||
Corporate debt securities: | |||||||||||||||||
Financial | 3,455 | 30 | (25 | ) | 3,460 | ||||||||||||
Industrial | 3,457 | 29 | (28 | ) | 3,458 | ||||||||||||
Other | 335 | 4 | (2 | ) | 337 | ||||||||||||
Residential mortgage-backed securities | 1,410 | 3 | (16 | ) | 1,397 | ||||||||||||
Other mortgage- and asset-backed securities | 1,491 | — | (39 | ) | 1,452 | ||||||||||||
Money market mutual funds | 6,907 | — | — | 6,907 | |||||||||||||
Total interest-bearing securities | 25,591 | 83 | (160 | ) | 25,514 | ||||||||||||
Equity securities | 72 | 19 | — | 91 | |||||||||||||
Total available-for-sale investments | $ | 25,663 | $ | 102 | $ | (160 | ) | $ | 25,605 | ||||||||
Type of security as of December 31, 2012 | Amortized | Gross | Gross | Estimated | |||||||||||||
cost | unrealized | unrealized | fair | ||||||||||||||
gains | losses | value | |||||||||||||||
U.S. Treasury securities | $ | 4,443 | $ | 15 | $ | — | $ | 4,458 | |||||||||
Other government-related debt securities: | |||||||||||||||||
U.S. | 1,018 | 12 | — | 1,030 | |||||||||||||
Foreign and other | 1,549 | 60 | (1 | ) | 1,608 | ||||||||||||
Corporate debt securities: | |||||||||||||||||
Financial | 3,266 | 96 | (1 | ) | 3,361 | ||||||||||||
Industrial | 4,283 | 100 | (3 | ) | 4,380 | ||||||||||||
Other | 441 | 11 | — | 452 | |||||||||||||
Residential mortgage-backed securities | 1,828 | 9 | (8 | ) | 1,829 | ||||||||||||
Other mortgage- and asset-backed securities | 1,769 | 7 | (9 | ) | 1,767 | ||||||||||||
Money market mutual funds | 2,620 | — | — | 2,620 | |||||||||||||
Other short-term interest-bearing securities | 2,186 | — | — | 2,186 | |||||||||||||
Total interest-bearing securities | 23,403 | 310 | (22 | ) | 23,691 | ||||||||||||
Equity securities | 52 | 2 | — | 54 | |||||||||||||
Total available-for-sale investments | $ | 23,455 | $ | 312 | $ | (22 | ) | $ | 23,745 | ||||||||
Fair values of available-for-sale investments by classification in the Consolidated Balance Sheets | The fair values of available-for-sale investments by classification in the Condensed Consolidated Balance Sheets were as follows (in millions): | ||||||||||||||||
Classification in the Condensed Consolidated Balance Sheets | September 30, | December 31, | |||||||||||||||
2013 | 2012 | ||||||||||||||||
Cash and cash equivalents | $ | 7,830 | $ | 2,887 | |||||||||||||
Marketable securities | 14,277 | 20,804 | |||||||||||||||
Other assets — noncurrent | 91 | 54 | |||||||||||||||
Restricted investments | 3,407 | — | |||||||||||||||
Total available-for-sale investments | $ | 25,605 | $ | 23,745 | |||||||||||||
Fair values of available-for-sale interest-bearing security investments by contractual maturity | The fair values of available-for-sale interest-bearing security investments by contractual maturity, except for mortgage- and asset- backed securities that do not have a single maturity date, were as follows (in millions): | ||||||||||||||||
Contractual maturity | September 30, | December 31, | |||||||||||||||
2013 | 2012 | ||||||||||||||||
Maturing in one year or less | $ | 10,820 | $ | 7,175 | |||||||||||||
Maturing after one year through three years | 4,671 | 5,014 | |||||||||||||||
Maturing after three years through five years | 5,742 | 6,286 | |||||||||||||||
Maturing after five years through ten years | 1,432 | 1,620 | |||||||||||||||
Mortgage- and asset-backed securities | 2,849 | 3,596 | |||||||||||||||
Total interest-bearing securities | $ | 25,514 | $ | 23,691 | |||||||||||||
Inventories_Tables
Inventories (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories | Inventories consisted of the following (in millions): | |||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Raw materials | $ | 218 | $ | 192 | ||||
Work in process | 1,807 | 1,723 | ||||||
Finished goods | 813 | 829 | ||||||
Total inventories | $ | 2,838 | $ | 2,744 | ||||
Financing_arrangements_Tables
Financing arrangements (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Carrying values and the fixed contractual coupon rates of long-term borrowings | The carrying values and the fixed contractual coupon rates of our long-term borrowings were as follows (in millions): | |||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
0.375% convertible notes due 2013 (0.375% 2013 Convertible Notes) | $ | — | $ | 2,488 | ||||
1.875% notes due 2014 (1.875% 2014 Notes) | 1,000 | 1,000 | ||||||
4.85% notes due 2014 (4.85% 2014 Notes) | 1,000 | 1,000 | ||||||
2.30% notes due 2016 (2.30% 2016 Notes) | 749 | 749 | ||||||
2.50% notes due 2016 (2.50% 2016 Notes) | 999 | 999 | ||||||
2.125% notes due 2017 (2.125% 2017 Notes) | 1,248 | 1,248 | ||||||
5.85% notes due 2017 (5.85% 2017 Notes) | 1,099 | 1,099 | ||||||
6.15% notes due 2018 (6.15% 2018 Notes) | 500 | 499 | ||||||
Master Repurchase Agreement obligation due 2018 | 3,100 | — | ||||||
4.375% euro-denominated notes due 2018 (4.375% 2018 euro Notes) | 741 | 723 | ||||||
5.70% notes due 2019 (5.70% 2019 Notes) | 999 | 999 | ||||||
2.125% euro-denominated notes due 2019 (2.125% 2019 euro Notes) | 910 | 887 | ||||||
4.50% notes due 2020 (4.50% 2020 Notes) | 300 | 300 | ||||||
3.45% notes due 2020 (3.45% 2020 Notes) | 898 | 897 | ||||||
4.10% notes due 2021 (4.10% 2021 Notes) | 998 | 998 | ||||||
3.875% notes due 2021 (3.875% 2021 Notes) | 1,746 | 1,745 | ||||||
3.625% notes due 2022 (3.625% 2022 Notes) | 747 | 747 | ||||||
5.50% pound-sterling-denominated notes due 2026 (5.50% 2026 pound sterling Notes) | 763 | 763 | ||||||
4.00% pound-sterling-denominated notes due 2029 (4.00% 2029 pound sterling Notes) | 1,118 | 1,117 | ||||||
6.375% notes due 2037 (6.375% 2037 Notes) | 899 | 899 | ||||||
6.90% notes due 2038 (6.90% 2038 Notes) | 499 | 499 | ||||||
6.40% notes due 2039 (6.40% 2039 Notes) | 996 | 996 | ||||||
5.75% notes due 2040 (5.75% 2040 Notes) | 697 | 697 | ||||||
4.95% notes due 2041 (4.95% 2041 Notes) | 596 | 595 | ||||||
5.15% notes due 2041 (5.15% 2041 Notes) | 2,232 | 2,232 | ||||||
5.65% notes due 2042 (5.65% 2042 Notes) | 1,244 | 1,244 | ||||||
5.375% notes due 2043 (5.375% 2043 Notes) | 1,000 | 1,000 | ||||||
Other notes | 111 | 109 | ||||||
Total debt | 27,189 | 26,529 | ||||||
Less current portion | (11 | ) | (2,495 | ) | ||||
Total noncurrent debt | $ | 27,178 | $ | 24,034 | ||||
Stockholders_equity_Tables
Stockholders' equity (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||
Summary of activity under our stock repurchase program | Activity under our stock repurchase program was as follows (in millions): | |||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Shares | Dollars | Shares | Dollars | |||||||||||||||||
First quarter | 9.1 | $ | 771 | 21 | $ | 1,429 | ||||||||||||||
Second quarter | — | — | 17.4 | 1,203 | ||||||||||||||||
Third quarter | — | — | 9.7 | 797 | ||||||||||||||||
Total stock repurchases | 9.1 | $ | 771 | 48.1 | $ | 3,429 | ||||||||||||||
Components of Accumulated Other Comprehensive Income | The components of AOCI were as follows (in millions): | |||||||||||||||||||
Foreign | Cash flow | Available-for-sale | Other | AOCI | ||||||||||||||||
currency | hedges | securities | ||||||||||||||||||
translation | ||||||||||||||||||||
Balance as of December 31, 2012 | $ | 12 | $ | (35 | ) | $ | 183 | $ | (14 | ) | $ | 146 | ||||||||
Foreign currency translation adjustments | (36 | ) | — | — | — | (36 | ) | |||||||||||||
Unrealized gains (losses) | — | (25 | ) | (32 | ) | 1 | (56 | ) | ||||||||||||
Reclassification adjustments to income | — | 144 | (67 | ) | — | 77 | ||||||||||||||
Income taxes | 13 | (44 | ) | 37 | — | 6 | ||||||||||||||
Balance as of March 31, 2013 | (11 | ) | 40 | 121 | (13 | ) | 137 | |||||||||||||
Foreign currency translation adjustments | (39 | ) | — | — | — | (39 | ) | |||||||||||||
Unrealized gains (losses) | — | 53 | (318 | ) | — | (265 | ) | |||||||||||||
Reclassification adjustments to income | — | (18 | ) | (7 | ) | — | (25 | ) | ||||||||||||
Income taxes | 14 | (13 | ) | 120 | — | 121 | ||||||||||||||
Balance as of June 30, 2013 | (36 | ) | 62 | (84 | ) | (13 | ) | (71 | ) | |||||||||||
Foreign currency translation adjustments | 18 | — | — | — | 18 | |||||||||||||||
Unrealized gains (losses) | — | 26 | 74 | (2 | ) | 98 | ||||||||||||||
Reclassification adjustments to income | — | (159 | ) | 2 | — | (157 | ) | |||||||||||||
Income taxes | (6 | ) | 49 | (28 | ) | — | 15 | |||||||||||||
Balance as of September 30, 2013 | $ | (24 | ) | $ | (22 | ) | $ | (36 | ) | $ | (15 | ) | $ | (97 | ) | |||||
Reclassifications out of Accumulated Other Comprehensive Income | The reclassifications out of AOCI to Net income were as follows (in millions): | |||||||||||||||||||
Amounts reclassified out of AOCI | ||||||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||||||
Components of AOCI | 30-Sep-13 | 30-Sep-13 | Line item affected in the Statements of Income | |||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||
Foreign currency contract gains | $ | 6 | $ | 9 | Product sales | |||||||||||||||
Cross-currency swap contract gains | 153 | 25 | Interest and other income, net | |||||||||||||||||
Forward interest rate contract losses | — | (1 | ) | Interest expense, net | ||||||||||||||||
159 | 33 | Total before income tax | ||||||||||||||||||
(59 | ) | (13 | ) | Tax (expense)/benefit | ||||||||||||||||
$ | 100 | $ | 20 | Net of taxes | ||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||
Net realized gains (losses) | $ | (2 | ) | $ | 72 | Interest and other income, net | ||||||||||||||
1 | (27 | ) | Tax (expense)/benefit | |||||||||||||||||
$ | (1 | ) | $ | 45 | Net of taxes | |||||||||||||||
Fair_value_measurement_Tables
Fair value measurement (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair value of each major class of financial assets and liabilities measured at fair value on a recurring basis | The fair value of each major class of the Company’s financial assets and liabilities measured at fair value on a recurring basis was as follows (in millions): | ||||||||||||||||
Quoted prices in | Significant | Significant | |||||||||||||||
active markets for | other observable | unobservable | |||||||||||||||
Fair value measurement | identical assets | inputs | inputs | ||||||||||||||
as of September 30, 2013, using: | (Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||
Assets: | |||||||||||||||||
Available-for-sale investments: | |||||||||||||||||
U.S. Treasury securities | $ | 6,173 | $ | — | $ | — | $ | 6,173 | |||||||||
Other government-related debt securities: | |||||||||||||||||
U.S. | — | 1,122 | — | 1,122 | |||||||||||||
Foreign and other | — | 1,208 | — | 1,208 | |||||||||||||
Corporate debt securities: | |||||||||||||||||
Financial | — | 3,460 | — | 3,460 | |||||||||||||
Industrial | — | 3,458 | — | 3,458 | |||||||||||||
Other | — | 337 | — | 337 | |||||||||||||
Residential mortgage-backed securities | — | 1,397 | — | 1,397 | |||||||||||||
Other mortgage- and asset-backed securities | — | 1,452 | — | 1,452 | |||||||||||||
Money market mutual funds | 6,907 | — | — | 6,907 | |||||||||||||
Equity securities | 91 | — | — | 91 | |||||||||||||
Derivatives: | |||||||||||||||||
Foreign currency contracts | — | 36 | — | 36 | |||||||||||||
Cross-currency swap contracts | — | 133 | — | 133 | |||||||||||||
Interest rate swap contracts | — | 13 | — | 13 | |||||||||||||
Total assets | $ | 13,171 | $ | 12,616 | $ | — | $ | 25,787 | |||||||||
Liabilities: | |||||||||||||||||
Derivatives: | |||||||||||||||||
Foreign currency contracts | $ | — | $ | 71 | $ | — | $ | 71 | |||||||||
Cross-currency swap contracts | — | 7 | — | 7 | |||||||||||||
Interest rate swap contracts | — | 97 | — | 97 | |||||||||||||
Contingent consideration obligations in connection with a business combination | — | — | 332 | 332 | |||||||||||||
Total liabilities | $ | — | $ | 175 | $ | 332 | $ | 507 | |||||||||
Quoted prices in | Significant | Significant | |||||||||||||||
active markets for | other observable | unobservable | |||||||||||||||
Fair value measurement | identical assets | inputs | inputs | ||||||||||||||
as of December 31, 2012, using: | (Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||
Assets: | |||||||||||||||||
Available-for-sale investments: | |||||||||||||||||
U.S. Treasury securities | $ | 4,458 | $ | — | $ | — | $ | 4,458 | |||||||||
Other government-related debt securities: | |||||||||||||||||
U.S. | — | 1,030 | — | 1,030 | |||||||||||||
Foreign and other | — | 1,608 | — | 1,608 | |||||||||||||
Corporate debt securities: | |||||||||||||||||
Financial | — | 3,361 | — | 3,361 | |||||||||||||
Industrial | — | 4,380 | — | 4,380 | |||||||||||||
Other | — | 452 | — | 452 | |||||||||||||
Residential mortgage-backed securities | — | 1,829 | — | 1,829 | |||||||||||||
Other mortgage- and asset-backed securities | — | 1,767 | — | 1,767 | |||||||||||||
Money market mutual funds | 2,620 | — | — | 2,620 | |||||||||||||
Other short-term interest-bearing securities | — | 2,186 | — | 2,186 | |||||||||||||
Equity securities | 54 | — | — | 54 | |||||||||||||
Derivatives: | |||||||||||||||||
Foreign currency contracts | — | 46 | — | 46 | |||||||||||||
Cross-currency swap contracts | — | 65 | — | 65 | |||||||||||||
Total assets | $ | 7,132 | $ | 16,724 | $ | — | $ | 23,856 | |||||||||
Liabilities: | |||||||||||||||||
Derivatives: | |||||||||||||||||
Foreign currency contracts | $ | — | $ | 59 | $ | — | $ | 59 | |||||||||
Cross-currency swap contracts | — | 6 | — | 6 | |||||||||||||
Contingent consideration obligations in connection with a business combination | — | — | 221 | 221 | |||||||||||||
Total liabilities | $ | — | $ | 65 | $ | 221 | $ | 286 | |||||||||
Derivative_instruments_Tables
Derivative instruments (Tables) | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||
Schedule of notional amounts and interest rates for cross-currency swaps | The notional amounts and interest rates of our cross-currency swaps are as follows (notional amounts in millions): | ||||||||||||||||||
Foreign currency | U.S. dollars | ||||||||||||||||||
Hedged notes | Notional Amount | Interest rate | Notional Amount | Interest rate | |||||||||||||||
2.125% 2019 euro Notes | € | 675 | 2.125 | % | $ | 864 | 2.6 | % | |||||||||||
5.50% 2026 pound sterling Notes | £ | 475 | 5.5 | % | $ | 748 | 5.8 | % | |||||||||||
4.00% 2029 pound sterling Notes | £ | 700 | 4 | % | $ | 1,122 | 4.3 | % | |||||||||||
Effective portion of the unrealized gain (loss) recognized in Other Comprehensive Income for our derivative instruments designated as cash flow hedges | The effective portion of the unrealized gain/(loss) recognized in other comprehensive income for our derivative instruments designated as cash flow hedges was as follows (in millions): | ||||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||
Derivatives in cash flow hedging relationships | 2013 | 2012 | 2013 | 2012 | |||||||||||||||
Foreign currency contracts | $ | (137 | ) | $ | (127 | ) | $ | (16 | ) | $ | (25 | ) | |||||||
Cross-currency swap contracts | 163 | 38 | 70 | 11 | |||||||||||||||
Forward interest rate contracts | — | — | — | (7 | ) | ||||||||||||||
Total | $ | 26 | $ | (89 | ) | $ | 54 | $ | (21 | ) | |||||||||
Location in the Condensed Consolidated Statements of Income and the effective portion of gain (loss) reclassified from Accumulated Other Comprehensive Income into earnings for our derivative instruments designated as cash flow hedges | The location in the Condensed Consolidated Statements of Income and the effective portion of the gain/(loss) reclassified out of AOCI into earnings for our derivative instruments designated as cash flow hedges were as follows (in millions): | ||||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||
Derivatives in cash flow hedging relationships | Statements of Income location | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Foreign currency contracts | Product sales | $ | 6 | $ | 38 | $ | 9 | $ | 67 | ||||||||||
Cross-currency swap contracts | Interest and other income, net | 153 | 58 | 25 | 54 | ||||||||||||||
Forward interest rate contracts | Interest expense, net | — | — | (1 | ) | (1 | ) | ||||||||||||
Total | $ | 159 | $ | 96 | $ | 33 | $ | 120 | |||||||||||
Location in the Condensed Consolidated Statements of Income and the amount of gain (loss) recognized in earnings for the derivative instruments not designated as hedging instruments | The location in the Condensed Consolidated Statements of Income and the amount of gain/(loss) recognized in earnings for our derivative instruments not designated as hedging instruments were as follows (in millions): | ||||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||
Derivatives not designated as hedging instruments | Statements of Income location | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Foreign currency contracts | Interest and other income, net | $ | 15 | $ | 3 | $ | 10 | $ | 13 | ||||||||||
Fair values of derivatives included in the Condensed Consolidated Balance Sheets | The fair values of derivatives included in the Condensed Consolidated Balance Sheets were as follows (in millions): | ||||||||||||||||||
Derivative assets | Derivative liabilities | ||||||||||||||||||
30-Sep-13 | Balance Sheet location | Fair value | Balance Sheet location | Fair value | |||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||
Cross-currency swap contracts | Other current assets/ Other noncurrent assets | $ | 133 | Accrued liabilities/ Other noncurrent liabilities | $ | 7 | |||||||||||||
Foreign currency contracts | Other current assets/ Other noncurrent assets | 36 | Accrued liabilities/ Other noncurrent liabilities | 71 | |||||||||||||||
Interest rate swap contracts | Other current assets/ Other noncurrent assets | 13 | Accrued liabilities/ Other noncurrent liabilities | 97 | |||||||||||||||
Total derivatives designated as hedging instruments | 182 | 175 | |||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||
Foreign currency contracts | Other current assets | — | Accrued liabilities | — | |||||||||||||||
Total derivatives not designated as hedging instruments | — | — | |||||||||||||||||
Total derivatives | $ | 182 | $ | 175 | |||||||||||||||
Derivative assets | Derivative liabilities | ||||||||||||||||||
31-Dec-12 | Balance Sheet | Fair value | Balance Sheet | Fair value | |||||||||||||||
location | location | ||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||
Cross-currency swap contracts | Other current assets/ Other noncurrent assets | $ | 65 | Accrued liabilities/ Other noncurrent liabilities | $ | 6 | |||||||||||||
Foreign currency contracts | Other current assets/ Other noncurrent assets | 45 | Accrued liabilities/ Other noncurrent liabilities | 58 | |||||||||||||||
Total derivatives designated as hedging instruments | 110 | 64 | |||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||
Foreign currency contracts | Other current assets | 1 | Accrued liabilities | 1 | |||||||||||||||
Total derivatives not designated as hedging instruments | 1 | 1 | |||||||||||||||||
Total derivatives | $ | 111 | $ | 65 | |||||||||||||||
Summary_of_significant_account2
Summary of significant accounting policies (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | |||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
Other Operating Expenses [Member] | Other Operating Expenses [Member] | Other Operating Expenses [Member] | Other Operating Expenses [Member] | ATL Holdings [Member] | ATL Holdings [Member] | ATL Holdings [Member] | NEUPOGEN [Member] | ||||||
Marketable Securities [Member] | Interest Receivable [Member] | U.S. federal government stockpiles [Member] | |||||||||||
Accounting Policies [Abstract] | |||||||||||||
Accumulated depreciation and amortization on property, plant and equipment | $6,800,000,000 | $6,800,000,000 | $6,600,000,000 | ||||||||||
Revenue from External Customer [Line Items] | |||||||||||||
Product sales | 4,647,000,000 | 4,201,000,000 | 13,393,000,000 | 12,302,000,000 | 155,000,000 | ||||||||
Restricted investments | |||||||||||||
Increase in restricted cash and cash equivalents | 526,000,000 | 0 | 526,000,000 | ||||||||||
Transfer from investments | 2,881,000,000 | 4,000,000 | |||||||||||
Cost savings initiatives | |||||||||||||
Charges for cost savings initiatives | $35,000,000 | $36,000,000 | $46,000,000 | $106,000,000 |
Business_combinations_Details
Business combinations (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 10, 2012 | Sep. 30, 2013 |
In Millions, unless otherwise specified | de CODE Genetics [Member] | de CODE Genetics [Member] | ||
Business Combinations (Textual) [Abstract] | ||||
Total consideration | $401 | |||
Finite-lived intangible assets comprised of databases and other proprietary information | 465 | |||
Finite-lived intangible assets, estimated useful life (in years) | 10 years | |||
Goodwill arising from business combinations | 12,572 | 12,662 | 47 | |
Deferred tax liabiities | 93 | |||
Other assets and liabilities, net | 18 | |||
Reduction in acquisition date fair value of goodwill | 46 | |||
Increase in acquisition date fair value of finite-lived intangible assets | $64 |
Income_taxes_Details
Income taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income taxes (Textual) [Abstract] | ||||
Effective income tax rate | 9.00% | 12.40% | 4.50% | 12.90% |
Effective tax rate for the period excluding the impact of the tax credits associated with the new Pr excise tax | 13.80% | 17.70% | 9.80% | 18.30% |
Increase in gross amount of unrecognized tax benefits for period | $85 | $240 | ||
Decrease in unrecognized tax benefits resulting from settlement with taxing authorities | 200 | |||
Net tax benefit from settlement with taxing authorities | 195 | |||
Decrease in unrecognized tax benefits that is reasonably possible within the succeeding 12 months due to resolution of federal and state audits | $70 | $70 | ||
Puerto Rico Excise Tax [Member] | ||||
Puerto Rico Excise Tax Rate [Line Items] | ||||
Period that excise tax is imposed | 6 years | |||
Effective excise tax rate for 2011 | 4.00% | |||
Effective excise tax rate for 2016 | 1.00% | |||
Excise excise tax rate for July 2013 through December 31, 2017 | 4.00% |
Earnings_per_share_Details
Earnings per share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income (Numerator): | ||||
Net income for basic and diluted EPS | $1,368 | $1,107 | $4,060 | $3,557 |
Shares (Denominator): | ||||
Weighted-average shares for basic EPS | 754 | 771 | 752 | 779 |
Effect of dilutive securities | 12 | 12 | 12 | 10 |
Weighted-average shares for diluted EPS | 766 | 783 | 764 | 789 |
Basic EPS (in usd per share) | $1.81 | $1.44 | $5.40 | $4.57 |
Diluted EPS (in usd per share) | $1.79 | $1.41 | $5.31 | $4.51 |
Earnings_per_share_Details_Tex
Earnings per share (Details Textual) | 3 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2012 | Sep. 30, 2012 |
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded from computation of diluted earnings per share, amount | 1 | 8 |
Availableforsale_investments_D
Available-for-sale investments (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of available-for-sale investments by type of security | ||
Amortized cost | $25,663 | $23,455 |
Gross unrealized gains | 102 | 312 |
Gross unrealized losses | -160 | -22 |
Total available-for-sale investments | 25,605 | 23,745 |
U.S. Treasury securities [Member] | ||
Amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of available-for-sale investments by type of security | ||
Amortized cost | 6,172 | 4,443 |
Gross unrealized gains | 5 | 15 |
Gross unrealized losses | -4 | 0 |
Total available-for-sale investments | 6,173 | 4,458 |
Other government-related debt securities - U.S. [Member] | ||
Amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of available-for-sale investments by type of security | ||
Amortized cost | 1,130 | 1,018 |
Gross unrealized gains | 0 | 12 |
Gross unrealized losses | -8 | 0 |
Total available-for-sale investments | 1,122 | 1,030 |
Other government-related debt securities - Foreign and other [Member] | ||
Amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of available-for-sale investments by type of security | ||
Amortized cost | 1,234 | 1,549 |
Gross unrealized gains | 12 | 60 |
Gross unrealized losses | -38 | -1 |
Total available-for-sale investments | 1,208 | 1,608 |
Corporate debt securities - Financial [Member] | ||
Amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of available-for-sale investments by type of security | ||
Amortized cost | 3,455 | 3,266 |
Gross unrealized gains | 30 | 96 |
Gross unrealized losses | -25 | -1 |
Total available-for-sale investments | 3,460 | 3,361 |
Corporate debt securities - Industrial [Member] | ||
Amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of available-for-sale investments by type of security | ||
Amortized cost | 3,457 | 4,283 |
Gross unrealized gains | 29 | 100 |
Gross unrealized losses | -28 | -3 |
Total available-for-sale investments | 3,458 | 4,380 |
Corporate debt securities - Other [Member] | ||
Amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of available-for-sale investments by type of security | ||
Amortized cost | 335 | 441 |
Gross unrealized gains | 4 | 11 |
Gross unrealized losses | -2 | 0 |
Total available-for-sale investments | 337 | 452 |
Residential mortgage-backed securities [Member] | ||
Amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of available-for-sale investments by type of security | ||
Amortized cost | 1,410 | 1,828 |
Gross unrealized gains | 3 | 9 |
Gross unrealized losses | -16 | -8 |
Total available-for-sale investments | 1,397 | 1,829 |
Other mortgage- and asset-backed securities [Member] | ||
Amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of available-for-sale investments by type of security | ||
Amortized cost | 1,491 | 1,769 |
Gross unrealized gains | 0 | 7 |
Gross unrealized losses | -39 | -9 |
Total available-for-sale investments | 1,452 | 1,767 |
Money market mutual funds [Member] | ||
Amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of available-for-sale investments by type of security | ||
Amortized cost | 6,907 | 2,620 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Total available-for-sale investments | 6,907 | 2,620 |
Other short-term interest-bearing securities [Member] | ||
Amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of available-for-sale investments by type of security | ||
Amortized cost | 2,186 | |
Gross unrealized gains | 0 | |
Gross unrealized losses | 0 | |
Total available-for-sale investments | 2,186 | |
Total interest-bearing securities [Member] | ||
Amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of available-for-sale investments by type of security | ||
Amortized cost | 25,591 | 23,403 |
Gross unrealized gains | 83 | 310 |
Gross unrealized losses | -160 | -22 |
Total available-for-sale investments | 25,514 | 23,691 |
Equity securities [Member] | ||
Amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of available-for-sale investments by type of security | ||
Amortized cost | 72 | 52 |
Gross unrealized gains | 19 | 2 |
Gross unrealized losses | 0 | 0 |
Total available-for-sale investments | $91 | $54 |
Availableforsale_investments_D1
Available-for-sale investments (Details 1) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Fair values of available-for-sale investments by classification in the Consolidated Balance Sheets | ||||
Cash and cash equivalents | $8,281 | $3,257 | $5,823 | $6,946 |
Marketable securities | 14,277 | 20,804 | ||
Other assets — noncurrent | 1,450 | 1,133 | ||
Restricted investments | 3,411 | 0 | ||
Total available-for-sale investments | 25,605 | 23,745 | ||
Available-for-sale investments [Member] | ||||
Fair values of available-for-sale investments by classification in the Consolidated Balance Sheets | ||||
Cash and cash equivalents | 7,830 | 2,887 | ||
Other assets — noncurrent | 91 | 54 | ||
Restricted investments | 0 | |||
ATL Holdings [Member] | Available-for-sale investments [Member] | ||||
Fair values of available-for-sale investments by classification in the Consolidated Balance Sheets | ||||
Restricted investments | $3,407 |
Availableforsale_investments_D2
Available-for-sale investments (Details 2) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair values of available-for-sale debt security investments by contractual maturity | ||
Maturing in one year or less | $10,820 | $7,175 |
Maturing after one year through three years | 4,671 | 5,014 |
Maturing after three years through five years | 5,742 | 6,286 |
Maturing after five years through ten years | 1,432 | 1,620 |
Mortgage- and asset-backed securities | 2,849 | 3,596 |
Total available-for-sale investments | 25,605 | 23,745 |
Total interest-bearing securities [Member] | ||
Fair values of available-for-sale debt security investments by contractual maturity | ||
Total available-for-sale investments | $25,514 | $23,691 |
Availableforsale_investments_D3
Available-for-sale investments (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Available-for-sale investments (Textual) [Abstract] | |||||
Cash | $451,000,000 | $451,000,000 | $370,000,000 | ||
Total realized gains | 24,000,000 | 31,000,000 | 142,000,000 | 147,000,000 | |
Total realized losses | 26,000,000 | 11,000,000 | 70,000,000 | 41,000,000 | |
Available for sale securities gross unrealized loss accumulated in investments | 160,000,000 | 160,000,000 | 22,000,000 | ||
Continuous unrealized loss position, less than 12 months | 8,500,000,000 | 8,500,000,000 | |||
ATL Holdings [Member] | |||||
Investments [Line Items] | |||||
Interest receivable | $4,000,000 | $4,000,000 |
Inventories_Details
Inventories (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Inventories | ||
Raw materials | $218 | $192 |
Work in process | 1,807 | 1,723 |
Finished goods | 813 | 829 |
Total inventories | $2,838 | $2,744 |
Financing_arrangements_Details
Financing arrangements (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Carrying values of long-term borrowings | ||
Total debt | $27,189 | $26,529 |
Less current portion | -11 | -2,495 |
Total noncurrent debt | 27,178 | 24,034 |
0.375% convertible notes due 2013 (0.375% 2013 Convertible Notes) [Member] | ||
Debt Instruments [Line Items] | ||
Interest rate, stated percentage | 0.38% | 0.38% |
Carrying values of long-term borrowings | ||
Convertible notes, current | 0 | 2,488 |
1.875% notes due 2014 (1.875% 2014 Notes) [Member] | ||
Debt Instruments [Line Items] | ||
Interest rate, stated percentage | 1.88% | 1.88% |
Carrying values of long-term borrowings | ||
Total noncurrent debt | 1,000 | 1,000 |
4.85% notes due 2014 (4.85% 2014 Notes) [Member] | ||
Debt Instruments [Line Items] | ||
Interest rate, stated percentage | 4.85% | 4.85% |
Carrying values of long-term borrowings | ||
Total noncurrent debt | 1,000 | 1,000 |
2.30% notes due 2016 (2.30% 2016 Notes) [Member] | ||
Debt Instruments [Line Items] | ||
Interest rate, stated percentage | 2.30% | 2.30% |
Carrying values of long-term borrowings | ||
Total noncurrent debt | 749 | 749 |
2.50% notes due 2016 (2.50% 2016 Notes) [Member] | ||
Debt Instruments [Line Items] | ||
Interest rate, stated percentage | 2.50% | 2.50% |
Carrying values of long-term borrowings | ||
Total noncurrent debt | 999 | 999 |
2.125% notes due 2017 (2.125% 2017 Notes) [Member] | ||
Debt Instruments [Line Items] | ||
Interest rate, stated percentage | 2.13% | 2.13% |
Carrying values of long-term borrowings | ||
Total noncurrent debt | 1,248 | 1,248 |
5.85% notes due 2017 (5.85% 2017 Notes) [Member] | ||
Debt Instruments [Line Items] | ||
Interest rate, stated percentage | 5.85% | 5.85% |
Carrying values of long-term borrowings | ||
Total noncurrent debt | 1,099 | 1,099 |
6.15% notes due 2018 (6.15% 2018 Notes) [Member] | ||
Debt Instruments [Line Items] | ||
Interest rate, stated percentage | 6.15% | 6.15% |
Carrying values of long-term borrowings | ||
Total noncurrent debt | 500 | 499 |
Master Repurchase Agreement Obligation due 2018 [Member] | ||
Carrying values of long-term borrowings | ||
Loans payable to bank, noncurrent | 3,100 | |
4.375% euro denominated notes due 2018 (4.375% 2018 euro Notes) [Member] | ||
Debt Instruments [Line Items] | ||
Interest rate, stated percentage | 4.38% | 4.38% |
Carrying values of long-term borrowings | ||
Total noncurrent debt | 741 | 723 |
5.70% notes due 2019 (5.70% 2019 Notes) [Member] | ||
Debt Instruments [Line Items] | ||
Interest rate, stated percentage | 5.70% | 5.70% |
Carrying values of long-term borrowings | ||
Total noncurrent debt | 999 | 999 |
2.125% euro denominated notes due 2019 (2.125% 2019 euro Notes) [Member] | ||
Debt Instruments [Line Items] | ||
Interest rate, stated percentage | 2.13% | 2.13% |
Carrying values of long-term borrowings | ||
Total noncurrent debt | 910 | 887 |
4.50% notes due 2020 (4.50% 2020 Notes) [Member] | ||
Debt Instruments [Line Items] | ||
Interest rate, stated percentage | 4.50% | 4.50% |
Carrying values of long-term borrowings | ||
Total noncurrent debt | 300 | 300 |
3.45% notes due 2020 (3.45% 2020 Notes) [Member] | ||
Debt Instruments [Line Items] | ||
Interest rate, stated percentage | 3.45% | 3.45% |
Carrying values of long-term borrowings | ||
Total noncurrent debt | 898 | 897 |
4.10% notes due 2021 (4.10% 2021 Notes) [Member] | ||
Debt Instruments [Line Items] | ||
Interest rate, stated percentage | 4.10% | 4.10% |
Carrying values of long-term borrowings | ||
Total noncurrent debt | 998 | 998 |
3.875% notes due 2021 (3.875% 2021 Notes) [Member] | ||
Debt Instruments [Line Items] | ||
Interest rate, stated percentage | 3.88% | 3.88% |
Carrying values of long-term borrowings | ||
Total noncurrent debt | 1,746 | 1,745 |
3.625% notes due 2022 (3.625% 2022 Notes) [Member] | ||
Debt Instruments [Line Items] | ||
Interest rate, stated percentage | 3.63% | 3.63% |
Carrying values of long-term borrowings | ||
Total noncurrent debt | 747 | 747 |
5.50% pound sterling denominated notes due 2026 (5.50% 2026 pound sterling Notes) [Member] | ||
Debt Instruments [Line Items] | ||
Interest rate, stated percentage | 5.50% | 5.50% |
Carrying values of long-term borrowings | ||
Total noncurrent debt | 763 | 763 |
4.00% pound sterling denominated notes due 2029 (4.00% 2029 pound sterling Notes) [Member] | ||
Debt Instruments [Line Items] | ||
Interest rate, stated percentage | 4.00% | 4.00% |
Carrying values of long-term borrowings | ||
Total noncurrent debt | 1,118 | 1,117 |
6.375% notes due 2037 (6.375% 2037 Notes) [Member] | ||
Debt Instruments [Line Items] | ||
Interest rate, stated percentage | 6.38% | 6.38% |
Carrying values of long-term borrowings | ||
Total noncurrent debt | 899 | 899 |
6.90% notes due 2038 (6.90% 2038 Notes) [Member] | ||
Debt Instruments [Line Items] | ||
Interest rate, stated percentage | 6.90% | 6.90% |
Carrying values of long-term borrowings | ||
Total noncurrent debt | 499 | 499 |
6.40% notes due 2039 (6.40% 2039 Notes) [Member] | ||
Debt Instruments [Line Items] | ||
Interest rate, stated percentage | 6.40% | 6.40% |
Carrying values of long-term borrowings | ||
Total noncurrent debt | 996 | 996 |
5.75% notes due 2040 (5.75% 2040 Notes) [Member] | ||
Debt Instruments [Line Items] | ||
Interest rate, stated percentage | 5.75% | 5.75% |
Carrying values of long-term borrowings | ||
Total noncurrent debt | 697 | 697 |
4.95% notes due 2041 (4.95% 2041 Notes) [Member] | ||
Debt Instruments [Line Items] | ||
Interest rate, stated percentage | 4.95% | 4.95% |
Carrying values of long-term borrowings | ||
Total noncurrent debt | 596 | 595 |
5.15% notes due 2041 (5.15% 2041 Notes) [Member] | ||
Debt Instruments [Line Items] | ||
Interest rate, stated percentage | 5.15% | 5.15% |
Carrying values of long-term borrowings | ||
Total noncurrent debt | 2,232 | 2,232 |
5.65% notes due 2042 (5.65% 2042 Notes) [Member] | ||
Debt Instruments [Line Items] | ||
Interest rate, stated percentage | 5.65% | 5.65% |
Carrying values of long-term borrowings | ||
Total noncurrent debt | 1,244 | 1,244 |
5.375% notes due 2043 (5.375% 2043 Notes) [Member] | ||
Debt Instruments [Line Items] | ||
Interest rate, stated percentage | 5.38% | 5.38% |
Carrying values of long-term borrowings | ||
Total noncurrent debt | 1,000 | 1,000 |
Other notes [Member] | ||
Carrying values of long-term borrowings | ||
Total noncurrent debt | $111 | $109 |
Financing_arrangements_Details1
Financing arrangements (Details Textual) (USD $) | 9 Months Ended | 0 Months Ended | 1 Months Ended | 9 Months Ended | 0 Months Ended | |||||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | Oct. 01, 2013 | 1-May-13 | Feb. 28, 2013 | Feb. 28, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Oct. 01, 2013 |
Master Repurchase Agreement Obligation due 2018 [Member] | Master Repurchase Agreement Obligation due 2018 [Member] | Term Loan Credit Facility [Member] | 0.375% convertible notes due 2013 (0.375% 2013 Convertible Notes) [Member] | 0.375% convertible notes due 2013 (0.375% 2013 Convertible Notes) [Member] | 0.375% convertible notes due 2013 (0.375% 2013 Convertible Notes) [Member] | ATL Holdings [Member] | Class A Preferred Shares [Member] | London Interbank Offered Rate (LIBOR) [Member] | London Interbank Offered Rate (LIBOR) [Member] | |
Subsequent Event [Member] | Value in Excess of Principal [Member] | Master Repurchase Agreement Obligation due 2018 [Member] | ATL Holdings [Member] | Master Repurchase Agreement Obligation due 2018 [Member] | Term Loan Credit Facility [Member] | |||||
subsidiary | Master Repurchase Agreement Obligation due 2018 [Member] | Subsequent Event [Member] | ||||||||
Debt Instruments [Line Items] | ||||||||||
Preferred shares sold | 34,097 | |||||||||
Sale of stock, number of wholly-owned subsidiaries | 1 | |||||||||
Liquidation preference per share (in usd per share) | $100,000 | |||||||||
Debt issuance cost | $26 | |||||||||
Debt instrument, description of variable rate basis | London Interbank Offered Rate (LIBOR) | LIBOR | ||||||||
Debt instrument, basis spread on variable rate | 1.10% | 1.00% | ||||||||
Quarterly principal payment in percent | 2.50% | |||||||||
Quarterly principal payment, amount | 125 | |||||||||
Loans payable to bank, noncurrent | 3,100 | 5,000 | ||||||||
Repayment of convertible notes | 2,500 | 99 | ||||||||
Cash settlement of convertible bond hedge | 99 | |||||||||
Number of shares acquired by warrants issued in connection with debt | 32,000,000 | |||||||||
Exercise price of warrants (in usd per warrant) | 104.8 | |||||||||
Net cash settlement of warrants | $100 |
Stockholders_equity_Details
Stockholders' equity (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Stock repurchase program | ||||||||
Stock repurchases, in shares | 0 | 0 | 9.1 | 9.7 | 17.4 | 21 | 9.1 | 48.1 |
Stock repurchases, in dollars | $0 | $0 | $771 | $797 | $1,203 | $1,429 | $771 | $3,429 |
Stockholders_equity_Details_1
Stockholders' equity (Details 1) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 |
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning balance, Foreign currency translation | ($36) | ($11) | $12 |
Beginning balance, Cash flow hedges | 62 | 40 | -35 |
Beginning balance, Available-for-sale securities | -84 | 121 | 183 |
Beginning balance, Other | -13 | -13 | -14 |
Beginning balance, AOCI | -71 | 137 | 146 |
Other Comprehensive Income (Loss), before Tax [Abstract] | |||
Foreign currency translation adjustments | 18 | -39 | -36 |
Unrealized gains (losses), Cash flow hedges | 26 | 53 | -25 |
Unrealized gains (losses), Available-for-sale securities | 74 | -318 | -32 |
Unrealized gains (losses), Other | -2 | 0 | 1 |
Unrealized gains (losses), AOCI | 98 | -265 | -56 |
Reclassification adjustments to income, Foreign currency translation | 0 | 0 | 0 |
Reclassification adjustments to income, Cash flow hedges | -159 | -18 | 144 |
Reclassification adjustments to income, Available-for-sale securities | 2 | -7 | -67 |
Reclassification adjustments to income, AOCI | -157 | -25 | 77 |
Income taxes, Foreign currency translation | -6 | 14 | 13 |
Income taxes, Cash flow hedges | 49 | -13 | -44 |
Income taxes, Available-for-sale securities | -28 | 120 | 37 |
Income taxes, Other | 0 | 0 | 0 |
Income taxes, AOCI | 15 | 121 | 6 |
Ending balance, Foreign currency translation | -24 | -36 | -11 |
Ending balance, Cash flow hedges | -22 | 62 | 40 |
Ending balance, Available-for-sale securities | -36 | -84 | 121 |
Ending balance, Other | -15 | -13 | -13 |
Ending balance, AOCI | ($97) | ($71) | $137 |
Stockholders_equity_Details_2
Stockholders' equity (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Product sales | $4,647 | $4,201 | $13,393 | $12,302 |
Interest and other income, net | 72 | 111 | 332 | 359 |
Interest expense, net | -257 | -271 | -761 | -762 |
Income before income taxes | 1,503 | 1,263 | 4,251 | 4,086 |
Tax (expense)/benefit | -135 | -156 | -191 | -529 |
Net income | 1,368 | 1,107 | 4,060 | 3,557 |
Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Product sales | 6 | 9 | ||
Interest and other income, net | 153 | 25 | ||
Interest expense, net | 0 | -1 | ||
Income before income taxes | 159 | 96 | 33 | 120 |
Tax (expense)/benefit | -59 | -13 | ||
Net income | 100 | 20 | ||
Realized Gains and Losses on Available-for-sale Securities [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest and other income, net | -2 | 72 | ||
Tax (expense)/benefit | 1 | -27 | ||
Net income | ($1) | $45 |
Stockholders_equity_Details_Te
Stockholders' equity (Details Textual) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | |||||||
In Billions, except Per Share data, unless otherwise specified | Sep. 06, 2013 | Jul. 26, 2013 | Jun. 07, 2013 | Mar. 07, 2013 | Mar. 06, 2013 | Dec. 13, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Oct. 16, 2013 |
Subsequent Event [Member] | |||||||||||
Equity [Abstract] | |||||||||||
Amount available for stock repurchases under a board approved stock repurchase plan | $1.60 | ||||||||||
Dividends Payable [Line Items] | |||||||||||
Common stock, dividends declared per share (in usd per share) | $0.47 | $0.47 | $0.47 | $0.47 | |||||||
Dividends paid per share (in usd per share) | $0.47 | $0.47 | $0.47 | $0.47 | $0.36 | $1.41 | $1.08 |
Fair_value_measurement_Details
Fair value measurement (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Assets: | ||
Total available-for-sale investments | $25,605 | $23,745 |
Fair Value, Measurements, Recurring [Member] | ||
Derivative Assets: | ||
Interest rate swap contracts | 13 | |
Total assets | 25,787 | 23,856 |
Derivative Liabilities: | ||
Interest rate swap contracts | 97 | |
Contingent consideration obligations in connection with a business combination | 332 | 221 |
Total liabilities | 507 | 286 |
Fair Value, Measurements, Recurring [Member] | Foreign currency contracts [Member] | ||
Derivative Assets: | ||
Foreign currency contracts | 36 | 46 |
Derivative Liabilities: | ||
Foreign currency contracts | 71 | 59 |
Fair Value, Measurements, Recurring [Member] | Cross currency swap contracts [Member] | ||
Derivative Assets: | ||
Foreign currency contracts | 133 | 65 |
Derivative Liabilities: | ||
Foreign currency contracts | 7 | 6 |
Fair Value, Measurements, Recurring [Member] | U.S. Treasury securities [Member] | ||
Assets: | ||
Total available-for-sale investments | 6,173 | 4,458 |
Fair Value, Measurements, Recurring [Member] | Other government-related debt securities - U.S. [Member] | ||
Assets: | ||
Total available-for-sale investments | 1,122 | 1,030 |
Fair Value, Measurements, Recurring [Member] | Other government-related debt securities - Foreign and other [Member] | ||
Assets: | ||
Total available-for-sale investments | 1,208 | 1,608 |
Fair Value, Measurements, Recurring [Member] | Corporate debt securities - Financial [Member] | ||
Assets: | ||
Total available-for-sale investments | 3,460 | 3,361 |
Fair Value, Measurements, Recurring [Member] | Corporate debt securities - Industrial [Member] | ||
Assets: | ||
Total available-for-sale investments | 3,458 | 4,380 |
Fair Value, Measurements, Recurring [Member] | Corporate debt securities - Other [Member] | ||
Assets: | ||
Total available-for-sale investments | 337 | 452 |
Fair Value, Measurements, Recurring [Member] | Residential mortgage-backed securities [Member] | ||
Assets: | ||
Total available-for-sale investments | 1,397 | 1,829 |
Fair Value, Measurements, Recurring [Member] | Other mortgage- and asset-backed securities [Member] | ||
Assets: | ||
Total available-for-sale investments | 1,452 | 1,767 |
Fair Value, Measurements, Recurring [Member] | Money market mutual funds [Member] | ||
Assets: | ||
Total available-for-sale investments | 6,907 | 2,620 |
Fair Value, Measurements, Recurring [Member] | Other short-term interest-bearing securities [Member] | ||
Assets: | ||
Total available-for-sale investments | 2,186 | |
Fair Value, Measurements, Recurring [Member] | Equity securities [Member] | ||
Assets: | ||
Total available-for-sale investments | 91 | 54 |
Fair Value, Measurements, Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | ||
Derivative Assets: | ||
Interest rate swap contracts | 0 | |
Total assets | 13,171 | 7,132 |
Derivative Liabilities: | ||
Interest rate swap contracts | 0 | |
Contingent consideration obligations in connection with a business combination | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Foreign currency contracts [Member] | ||
Derivative Assets: | ||
Foreign currency contracts | 0 | 0 |
Derivative Liabilities: | ||
Foreign currency contracts | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Cross currency swap contracts [Member] | ||
Derivative Assets: | ||
Foreign currency contracts | 0 | 0 |
Derivative Liabilities: | ||
Foreign currency contracts | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | U.S. Treasury securities [Member] | ||
Assets: | ||
Total available-for-sale investments | 6,173 | 4,458 |
Fair Value, Measurements, Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Other government-related debt securities - U.S. [Member] | ||
Assets: | ||
Total available-for-sale investments | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Other government-related debt securities - Foreign and other [Member] | ||
Assets: | ||
Total available-for-sale investments | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Corporate debt securities - Financial [Member] | ||
Assets: | ||
Total available-for-sale investments | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Corporate debt securities - Industrial [Member] | ||
Assets: | ||
Total available-for-sale investments | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Corporate debt securities - Other [Member] | ||
Assets: | ||
Total available-for-sale investments | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Residential mortgage-backed securities [Member] | ||
Assets: | ||
Total available-for-sale investments | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Other mortgage- and asset-backed securities [Member] | ||
Assets: | ||
Total available-for-sale investments | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Money market mutual funds [Member] | ||
Assets: | ||
Total available-for-sale investments | 6,907 | 2,620 |
Fair Value, Measurements, Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Other short-term interest-bearing securities [Member] | ||
Assets: | ||
Total available-for-sale investments | 0 | |
Fair Value, Measurements, Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Equity securities [Member] | ||
Assets: | ||
Total available-for-sale investments | 91 | 54 |
Fair Value, Measurements, Recurring [Member] | Significant other observable inputs (Level 2) [Member] | ||
Derivative Assets: | ||
Interest rate swap contracts | 13 | |
Total assets | 12,616 | 16,724 |
Derivative Liabilities: | ||
Interest rate swap contracts | 97 | |
Contingent consideration obligations in connection with a business combination | 0 | 0 |
Total liabilities | 175 | 65 |
Fair Value, Measurements, Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Foreign currency contracts [Member] | ||
Derivative Assets: | ||
Foreign currency contracts | 36 | 46 |
Derivative Liabilities: | ||
Foreign currency contracts | 71 | 59 |
Fair Value, Measurements, Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Cross currency swap contracts [Member] | ||
Derivative Assets: | ||
Foreign currency contracts | 133 | 65 |
Derivative Liabilities: | ||
Foreign currency contracts | 7 | 6 |
Fair Value, Measurements, Recurring [Member] | Significant other observable inputs (Level 2) [Member] | U.S. Treasury securities [Member] | ||
Assets: | ||
Total available-for-sale investments | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Other government-related debt securities - U.S. [Member] | ||
Assets: | ||
Total available-for-sale investments | 1,122 | 1,030 |
Fair Value, Measurements, Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Other government-related debt securities - Foreign and other [Member] | ||
Assets: | ||
Total available-for-sale investments | 1,208 | 1,608 |
Fair Value, Measurements, Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Corporate debt securities - Financial [Member] | ||
Assets: | ||
Total available-for-sale investments | 3,460 | 3,361 |
Fair Value, Measurements, Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Corporate debt securities - Industrial [Member] | ||
Assets: | ||
Total available-for-sale investments | 3,458 | 4,380 |
Fair Value, Measurements, Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Corporate debt securities - Other [Member] | ||
Assets: | ||
Total available-for-sale investments | 337 | 452 |
Fair Value, Measurements, Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Residential mortgage-backed securities [Member] | ||
Assets: | ||
Total available-for-sale investments | 1,397 | 1,829 |
Fair Value, Measurements, Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Other mortgage- and asset-backed securities [Member] | ||
Assets: | ||
Total available-for-sale investments | 1,452 | 1,767 |
Fair Value, Measurements, Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Money market mutual funds [Member] | ||
Assets: | ||
Total available-for-sale investments | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Other short-term interest-bearing securities [Member] | ||
Assets: | ||
Total available-for-sale investments | 2,186 | |
Fair Value, Measurements, Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Equity securities [Member] | ||
Assets: | ||
Total available-for-sale investments | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | ||
Derivative Assets: | ||
Interest rate swap contracts | 0 | |
Total assets | 0 | 0 |
Derivative Liabilities: | ||
Interest rate swap contracts | 0 | |
Contingent consideration obligations in connection with a business combination | 332 | 221 |
Total liabilities | 332 | 221 |
Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Foreign currency contracts [Member] | ||
Derivative Assets: | ||
Foreign currency contracts | 0 | 0 |
Derivative Liabilities: | ||
Foreign currency contracts | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Cross currency swap contracts [Member] | ||
Derivative Assets: | ||
Foreign currency contracts | 0 | 0 |
Derivative Liabilities: | ||
Foreign currency contracts | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | U.S. Treasury securities [Member] | ||
Assets: | ||
Total available-for-sale investments | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Other government-related debt securities - U.S. [Member] | ||
Assets: | ||
Total available-for-sale investments | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Other government-related debt securities - Foreign and other [Member] | ||
Assets: | ||
Total available-for-sale investments | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Corporate debt securities - Financial [Member] | ||
Assets: | ||
Total available-for-sale investments | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Corporate debt securities - Industrial [Member] | ||
Assets: | ||
Total available-for-sale investments | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Corporate debt securities - Other [Member] | ||
Assets: | ||
Total available-for-sale investments | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Residential mortgage-backed securities [Member] | ||
Assets: | ||
Total available-for-sale investments | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Other mortgage- and asset-backed securities [Member] | ||
Assets: | ||
Total available-for-sale investments | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Money market mutual funds [Member] | ||
Assets: | ||
Total available-for-sale investments | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Other short-term interest-bearing securities [Member] | ||
Assets: | ||
Total available-for-sale investments | 0 | |
Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Equity securities [Member] | ||
Assets: | ||
Total available-for-sale investments | $0 | $0 |
Fair_value_measurements_Detail
Fair value measurements (Details Textual) (USD $) | 9 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | |
BioVex Group Inc [Member] | BioVex Group Inc [Member] | BioVex Group Inc [Member] | BioVex Group Inc [Member] | BioVex Group Inc [Member] | Other Government-related and Corporate Debt Securities [Member] | |||
ContingentConsideration | Other Operating Expenses [Member] | Other Operating Expenses [Member] | Other Operating Expenses [Member] | Other Operating Expenses [Member] | ||||
Business Combinations [Line Items] | ||||||||
Investment maturity period | 5 years | |||||||
Length of time hedged in foreign currency contracts | 3 years | |||||||
Maximum additional consideration due contingent on milestones | $575,000,000 | |||||||
Maximum number of contingent consideration payments for achieving regulatory and sales related milestones | 8 | |||||||
The number of payments that will potentially be made that each equal the largest potential contingent consideration payment | 3 | |||||||
Largest potential contingent consideration payments | 125,000,000 | |||||||
Change in fair values of contingent consideration obligations | 0 | 2,000,000 | 111,000,000 | 5,000,000 | ||||
Fair Value Measurement (Textual) [Abstract] | ||||||||
Aggregate fair value of long-term debt, including current portion | 28,300,000,000 | 29,900,000,000 | ||||||
Carrying value of long-term debt, including current portion | $27,189,000,000 | $26,529,000,000 |
Derivative_Instruments_Details
Derivative Instruments (Details) (Cash flow hedge [Member], Cross currency swap contracts [Member]) | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
In Millions, unless otherwise specified | 2.125% euro denominated notes due 2019 (2.125% 2019 euro Notes) [Member] | 2.125% euro denominated notes due 2019 (2.125% 2019 euro Notes) [Member] | 5.50% pound sterling denominated notes due 2026 (5.50% 2026 pound sterling Notes) [Member] | 5.50% pound sterling denominated notes due 2026 (5.50% 2026 pound sterling Notes) [Member] | 4.00% pound sterling denominated notes due 2029 (4.00% 2029 pound sterling Notes) [Member] | 4.00% pound sterling denominated notes due 2029 (4.00% 2029 pound sterling Notes) [Member] | Interest rate received [Member] | Interest rate received [Member] | Interest rate received [Member] | Interest rate paid [Member] | Interest rate paid [Member] | Interest rate paid [Member] |
USD ($) | EUR (€) | USD ($) | GBP (£) | USD ($) | GBP (£) | 2.125% euro denominated notes due 2019 (2.125% 2019 euro Notes) [Member] | 5.50% pound sterling denominated notes due 2026 (5.50% 2026 pound sterling Notes) [Member] | 4.00% pound sterling denominated notes due 2029 (4.00% 2029 pound sterling Notes) [Member] | 2.125% euro denominated notes due 2019 (2.125% 2019 euro Notes) [Member] | 5.50% pound sterling denominated notes due 2026 (5.50% 2026 pound sterling Notes) [Member] | 4.00% pound sterling denominated notes due 2029 (4.00% 2029 pound sterling Notes) [Member] | |
Derivative [Line Items] | ||||||||||||
Notional Amount | $864 | € 675 | $748 | £ 475 | $1,122 | £ 700 | ||||||
Fixed Interest Rate | 2.13% | 5.50% | 4.00% | 2.60% | 5.80% | 4.30% |
Recovered_Sheet1
Derivative instruments (Details 1) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Effective portion of the unrealized gain (loss) recognized in Other Comprehensive Income for our derivative instruments designated as cash flow hedges | ||||
Unrealized gain (loss) on derivative instruments recognized in Other Comprehensive Income, effective portion, net | $26 | ($89) | $54 | ($21) |
Foreign currency contracts [Member] | ||||
Effective portion of the unrealized gain (loss) recognized in Other Comprehensive Income for our derivative instruments designated as cash flow hedges | ||||
Unrealized gain (loss) on derivative instruments recognized in Other Comprehensive Income, effective portion, net | -137 | -127 | -16 | -25 |
Cross currency swap contracts [Member] | ||||
Effective portion of the unrealized gain (loss) recognized in Other Comprehensive Income for our derivative instruments designated as cash flow hedges | ||||
Unrealized gain (loss) on derivative instruments recognized in Other Comprehensive Income, effective portion, net | 163 | 38 | 70 | 11 |
Forward interest rate contracts [Member] | ||||
Effective portion of the unrealized gain (loss) recognized in Other Comprehensive Income for our derivative instruments designated as cash flow hedges | ||||
Unrealized gain (loss) on derivative instruments recognized in Other Comprehensive Income, effective portion, net | $0 | $0 | $0 | ($7) |
Derivative_instruments_Details1
Derivative instruments (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Derivative Instruments Gain Loss [Line Items] | ||||
Product sales | $4,647 | $4,201 | $13,393 | $12,302 |
Interest and other income, net | 72 | 111 | 332 | 359 |
Interest expense, net | -257 | -271 | -761 | -762 |
Income before income taxes | 1,503 | 1,263 | 4,251 | 4,086 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Product sales | 6 | 9 | ||
Interest and other income, net | 153 | 25 | ||
Interest expense, net | 0 | -1 | ||
Income before income taxes | 159 | 96 | 33 | 120 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Foreign currency contracts [Member] | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Product sales | 6 | 38 | 9 | 67 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Cross currency swap contracts [Member] | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Interest and other income, net | 153 | 58 | 25 | 54 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Forward interest rate contracts [Member] | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Interest expense, net | $0 | $0 | ($1) | ($1) |
Derivative_instruments_Details2
Derivative instruments (Details 3) (Foreign currency contracts [Member], Interest and other income, net [Member], USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Foreign currency contracts [Member] | Interest and other income, net [Member] | ||||
Location in the Condensed Consolidated Statements of Income and the amount of gain (loss) recognized in earnings for our derivative instruments not designated as hedging instruments | ||||
Amount of gain (loss) recognized in interest and other income, net | $15 | $3 | $10 | $13 |
Derivative_instruments_Details3
Derivative instruments (Details 4) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Assets | ||
Total derivative assets, fair value | $182 | $111 |
Liabilities | ||
Total derivative liabilities, fair value | 175 | 65 |
Derivatives designated as hedging instrument [Member] | ||
Assets | ||
Total derivative assets, fair value | 182 | 110 |
Liabilities | ||
Total derivative liabilities, fair value | 175 | 64 |
Derivatives not designated as hedging instrument [Member] | ||
Assets | ||
Total derivative assets, fair value | 0 | 1 |
Liabilities | ||
Total derivative liabilities, fair value | 0 | 1 |
Cross currency swap contracts [Member] | Other current assets/Other noncurrent assets [Member] | Derivatives designated as hedging instrument [Member] | ||
Assets | ||
Total derivative assets, fair value | 133 | 65 |
Cross currency swap contracts [Member] | Accrued liabilities/Other noncurrent liabilities [Member] | Derivatives designated as hedging instrument [Member] | ||
Liabilities | ||
Total derivative liabilities, fair value | 7 | 6 |
Foreign currency contracts [Member] | Other current assets/Other noncurrent assets [Member] | Derivatives designated as hedging instrument [Member] | ||
Assets | ||
Total derivative assets, fair value | 36 | 45 |
Foreign currency contracts [Member] | Other current assets [Member] | Derivatives not designated as hedging instrument [Member] | ||
Assets | ||
Total derivative assets, fair value | 0 | 1 |
Foreign currency contracts [Member] | Accrued liabilities/Other noncurrent liabilities [Member] | Derivatives designated as hedging instrument [Member] | ||
Liabilities | ||
Total derivative liabilities, fair value | 71 | 58 |
Foreign currency contracts [Member] | Accrued liabilities [Member] | Derivatives not designated as hedging instrument [Member] | ||
Liabilities | ||
Total derivative liabilities, fair value | 0 | 1 |
Interest rate swap contracts [Member] | Other current assets/Other noncurrent assets [Member] | Derivatives designated as hedging instrument [Member] | ||
Assets | ||
Total derivative assets, fair value | 13 | |
Interest rate swap contracts [Member] | Accrued liabilities/Other noncurrent liabilities [Member] | Derivatives designated as hedging instrument [Member] | ||
Liabilities | ||
Total derivative liabilities, fair value | $97 |
Derivative_instruments_Details4
Derivative instruments (Details Textual) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
Interest expense, net [Member] | Interest expense, net [Member] | Interest expense, net [Member] | Foreign currency and cross currency swap contracts [Member] | Forward interest rate contracts [Member] | Rate adjustment to LIBOR on interest rate swap agreements [Member] | Rate adjustment to LIBOR on interest rate swap agreements [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | ||
Foreign currency forward contracts [Member] | Foreign currency forward contracts [Member] | Foreign currency option contracts [Member] | Foreign currency option contracts [Member] | Interest rate swap [Member] | Interest rate swap [Member] | Interest rate swap [Member] | Foreign currency forward contracts [Member] | Foreign currency forward contracts [Member] | |||||||||
Derivative Instruments Gain Loss [Line Items] | |||||||||||||||||
Length of time hedged in foreign currency contracts | 3 years | ||||||||||||||||
Derivative, notional amount | $3,800 | $3,700 | $210 | $200 | $1,900 | $2,500 | $3,600 | $694 | $629 | ||||||||
Amounts expected to be reclassified from Accumulated Other Comprehensive Income into earnings over the next 12 months - gains (losses) | -20 | ||||||||||||||||
Amounts expected to be reclassified from Accumulated Other Comprehensive Income into earnings over the next 12 months - gain (loss) | -1 | ||||||||||||||||
Derivative lower range variable interest rate | 1.10% | 0.30% | |||||||||||||||
Derivative higher range variable interest rate | 2.00% | 2.60% | |||||||||||||||
Unrealized gain (loss) on the hedged debt | -7 | 84 | -20 | ||||||||||||||
Unrealized gain (loss) on interest rate swaps | $7 | ($84) | $20 |
Contingencies_and_commitments_
Contingencies and commitments (Details) (Onyx [Member]) | 1 Months Ended |
Sep. 16, 2013 | |
plaintiffs | |
Loss Contingencies [Line Items] | |
Number of plaintiffs | 9 |
Superior Court State of California [Member] | |
Loss Contingencies [Line Items] | |
Number of plaintiffs | 7 |
Subsequent_event_Details
Subsequent event (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Oct. 01, 2013 | Oct. 01, 2013 | Oct. 01, 2013 | Oct. 01, 2013 |
Master Repurchase Agreement Obligation due 2018 [Member] | Master Repurchase Agreement Obligation due 2018 [Member] | Onyx [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | |
Master Repurchase Agreement Obligation due 2018 [Member] | Term Loan Credit Facility [Member] | Onyx [Member] | Onyx [Member] | Onyx [Member] | |||
Term Loan Credit Facility [Member] | Bayer HealthCare Pharmaceuticals, Inc. [Member] | ||||||
product | |||||||
Subsequent Event [Line Items] | |||||||
Number of products in collaboration | 2 | ||||||
Net cash consideration | $9,700,000,000 | ||||||
Purchase price per share of common stock (in usd per share) | $125 | ||||||
Business combination, cash on hand used in acquisition | 1,600,000,000 | ||||||
Loans payable to bank, noncurrent | $3,100,000,000 | $3,100,000,000 | $5,000,000,000 | $5,000,000,000 |