Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 12, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | AMGEN INC | ||
Entity Central Index Key | 318154 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $89,797,013,692 | ||
Entity Common Stock, Shares Outstanding | 758,861,306 |
Document_and_Entity_Informatio1
Document and Entity Information - Additional Information | Jun. 30, 2014 |
Document and Entity Information [Abstract] | |
Shares of common stock held by directors and executive officers | 805,131 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues: | |||
Product sales | $19,327 | $18,192 | $16,639 |
Other revenues | 736 | 484 | 626 |
Total revenues | 20,063 | 18,676 | 17,265 |
Operating expenses: | |||
Cost of sales | 4,422 | 3,346 | 3,199 |
Research and development | 4,297 | 4,083 | 3,380 |
Selling, general and administrative | 4,699 | 5,184 | 4,814 |
Other | 454 | 196 | 295 |
Total operating expenses | 13,872 | 12,809 | 11,688 |
Operating income | 6,191 | 5,867 | 5,577 |
Interest expense, net | 1,071 | 1,022 | 1,053 |
Interest and other income, net | 465 | 420 | 485 |
Income before income taxes | 5,585 | 5,265 | 5,009 |
Provision for income taxes | 427 | 184 | 664 |
Net income | $5,158 | $5,081 | $4,345 |
Earnings per share: | |||
Basic (in usd per share) | $6.80 | $6.75 | $5.61 |
Diluted (in usd per share) | $6.70 | $6.64 | $5.52 |
Shares used in the calculation of earnings per share: | |||
Basic (in shares) | 759 | 753 | 775 |
Diluted (in shares) | 770 | 765 | 787 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net income | $5,158 | $5,081 | $4,345 |
Other comprehensive income (loss), net of reclassification adjustments and taxes: | |||
Foreign currency translation losses | -196 | -80 | -9 |
Effective portion of cash flow hedges | 323 | 2 | -78 |
Net unrealized gains (losses) on available-for-sale securities | 24 | -226 | 63 |
Other | 2 | -3 | -1 |
Other comprehensive income (loss), net of tax | 153 | -307 | -25 |
Comprehensive income | $5,311 | $4,774 | $4,320 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $3,731 | $3,805 |
Marketable securities | 23,295 | 15,596 |
Trade receivables, net | 2,546 | 2,697 |
Inventories | 2,647 | 3,019 |
Other current assets | 2,494 | 2,250 |
Total current assets | 34,713 | 27,367 |
Property, plant and equipment, net | 5,223 | 5,349 |
Intangible assets, net | 12,693 | 13,262 |
Goodwill | 14,788 | 14,968 |
Restricted investments | 0 | 3,412 |
Other assets | 1,592 | 1,767 |
Total assets | 69,009 | 66,125 |
Current liabilities: | ||
Accounts payable | 1,212 | 787 |
Accrued liabilities | 5,296 | 4,655 |
Current portion of long-term debt | 500 | 2,505 |
Total current liabilities | 7,008 | 7,947 |
Long-term debt | 30,215 | 29,623 |
Long-term deferred tax liability | 3,461 | 3,498 |
Other noncurrent liabilities | 2,547 | 2,961 |
Contingencies and commitments | ||
Stockholders’ equity: | ||
Common stock and additional paid-in capital; $0.0001 par value; 2,750.0 shares authorized; outstanding — 760.4 shares in 2014 and 754.6 shares in 2013 | 30,410 | 29,891 |
Accumulated deficit | -4,624 | -7,634 |
Accumulated other comprehensive loss | -8 | -161 |
Total stockholders’ equity | 25,778 | 22,096 |
Total liabilities and stockholders’ equity | $69,009 | $66,125 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
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 | 2,750,000,000 | 2,750,000,000 |
Common stock and additional paid-in capital, shares outstanding | 760,400,000 | 754,600,000 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Number of shares of common stock [Member] | Common stock and additional paid-in capital [Member] | Accumulated deficit [Member] | Accumulated other comprehensive income (loss) [Member] |
In Millions, unless otherwise specified | USD ($) | USD ($) | USD ($) | USD ($) | |
Beginning Balance at Dec. 31, 2011 | $19,029 | $27,777 | ($8,919) | $171 | |
Beginning Balance, Shares at Dec. 31, 2011 | 795.6 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 4,345 | 4,345 | |||
Other comprehensive income (loss), net of tax | -25 | -25 | |||
Dividends | -1,187 | -1,187 | |||
Issuance of common stock in connection with the Company’s equity award programs, Shares | 23 | ||||
Issuance of common stock in connection with the Company’s equity award programs | 1,288 | 1,288 | |||
Stock-based compensation | 359 | 359 | |||
Tax impact related to employee stock-based compensation | -87 | -87 | |||
Repurchases of common stock, Shares | -62.3 | ||||
Repurchases of common stock | -4,662 | -4,662 | |||
Ending Balance at Dec. 31, 2012 | 19,060 | 29,337 | -10,423 | 146 | |
Ending Balance, Shares at Dec. 31, 2012 | 756.3 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 5,081 | 5,081 | |||
Other comprehensive income (loss), net of tax | -307 | -307 | |||
Dividends | -1,521 | -1,521 | |||
Issuance of common stock in connection with the Company’s equity award programs, Shares | 7.4 | ||||
Issuance of common stock in connection with the Company’s equity award programs | 296 | 296 | |||
Stock-based compensation | 400 | 400 | |||
Settlement of conversion value of convertible debt in excess of principal | -99 | -99 | |||
Settlement of convertible note hedge | 99 | 99 | |||
Settlement of warrants | -100 | -100 | |||
Tax impact related to employee stock-based compensation | -42 | -42 | |||
Repurchases of common stock, Shares | -9.1 | ||||
Repurchases of common stock | -771 | -771 | |||
Ending Balance at Dec. 31, 2013 | 22,096 | 29,891 | -7,634 | -161 | |
Ending Balance, Shares at Dec. 31, 2013 | 754.6 | 754.6 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 5,158 | 5,158 | |||
Other comprehensive income (loss), net of tax | 153 | 153 | |||
Dividends | -1,995 | -1,995 | |||
Issuance of common stock in connection with the Company’s equity award programs, Shares | 6.7 | ||||
Issuance of common stock in connection with the Company’s equity award programs | 186 | 186 | |||
Stock-based compensation | 404 | 404 | |||
Tax impact related to employee stock-based compensation | -71 | -71 | |||
Repurchases of common stock, Shares | -0.9 | ||||
Repurchases of common stock | -153 | -153 | |||
Ending Balance at Dec. 31, 2014 | $25,778 | $30,410 | ($4,624) | ($8) | |
Ending Balance, Shares at Dec. 31, 2014 | 760.4 | 760.4 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net income | $5,158 | $5,081 | $4,345 |
Depreciation and amortization | 2,092 | 1,286 | 1,088 |
Stock-based compensation expense | 408 | 403 | 362 |
Deferred income taxes | -108 | -189 | 28 |
Property, plant and equipment impairments | 97 | 19 | 178 |
Other items, net | -213 | 84 | -74 |
Changes in operating assets and liabilities, net of acquisitions: | |||
Trade receivables, net | 136 | -38 | 348 |
Inventories | 327 | -7 | -150 |
Other assets | -1 | -59 | 124 |
Accounts payable | 405 | -184 | 161 |
Accrued income taxes | -103 | -326 | 87 |
Legal reserve | 0 | 0 | -780 |
Other liabilities | 357 | 221 | 165 |
Net cash provided by operating activities | 8,555 | 6,291 | 5,882 |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | -718 | -693 | -689 |
Cash paid for acquisitions, net of cash acquired | -165 | -9,434 | -2,390 |
Purchases of intangible assets | -285 | 0 | -25 |
Purchases of marketable securities | -25,878 | -21,965 | -26,241 |
Proceeds from sales of marketable securities | 16,697 | 19,123 | 17,372 |
Proceeds from maturities of marketable securities | 4,199 | 5,090 | 1,994 |
Change in restricted investments, net | 533 | -520 | 0 |
Other | -135 | -70 | -11 |
Net cash used in investing activities | -5,752 | -8,469 | -9,990 |
Cash flows from financing activities: | |||
Net proceeds from issuance of debt | 4,476 | 8,054 | 4,933 |
Repayment of debt | -5,605 | -3,371 | -123 |
Repurchases of common stock | -138 | -832 | -4,607 |
Dividends paid | -1,851 | -1,415 | -1,118 |
Net proceeds from issuance of common stock in connection with the Company's equity award programs | 186 | 296 | 1,288 |
Other | 55 | -6 | 46 |
Net cash (used in) provided by financing activities | -2,877 | 2,726 | 419 |
(Decrease) increase in cash and cash equivalents | -74 | 548 | -3,689 |
Cash and cash equivalents at beginning of period | 3,805 | 3,257 | 6,946 |
Cash and cash equivalents at end of period | $3,731 | $3,805 | $3,257 |
Summary_of_significant_account
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | Summary of significant accounting policies |
Business | |
Amgen Inc. (including its subsidiaries, referred to as “Amgen,” “the Company,” “we,” “our” or “us”) is a global biotechnology pioneer that discovers, develops, manufactures and delivers innovative human therapeutics. We operate in one business segment: human therapeutics. | |
Principles of consolidation | |
The consolidated financial statements include the accounts of Amgen as well as its majority-owned subsidiaries. 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 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 consolidated financial statements and accompanying notes. Actual results may differ from those estimates. | |
Product sales | |
Sales of our products are recognized when shipped and title and risk of loss have passed. Product sales are recorded net of accruals for estimated rebates, wholesaler chargebacks, discounts and other deductions (collectively “sales deductions”) and returns. Taxes collected from customers and remitted to government authorities related to the sales of the Company’s products, primarily in Europe, are excluded from revenues. | |
We recognized revenue from the sale of product to the U.S. federal government for stockpile in accordance with U.S. 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® during the year ended December 31, 2013, for purchases by the federal government for the SNS. There were no purchases by the federal government for the SNS during the years ended December 31, 2014 and 2012. We are contracted to manage this inventory of product until the federal government requests shipment. | |
Other revenues | |
Other revenues consist primarily of royalty income and corporate partner revenues. Royalties from licensees are based on third-party sales of licensed products and are recorded in accordance with contract terms when third-party results are reliably measurable and collectability is reasonably assured. Royalty estimates are made in advance of amounts collected using historical and forecasted trends. Corporate partner revenues are comprised mainly of amounts earned from Kirin-Amgen, Inc. (K-A) and other third parties for certain research and development (R&D) services, which are recognized as the R&D services are performed, as well as our share of the U.S. pre-tax Nexavar® commercial profits generated from our collaboration with Bayer HealthCare Pharmaceuticals, Inc. (Bayer). Corporate partner revenues also include license fees and milestone payments earned from K-A and from other third parties. See Multiple-deliverable revenue arrangements, discussed below, Note 7, Collaborative arrangements, and Note 8, Related party transactions. | |
Multiple-deliverable revenue arrangements | |
From time to time, we enter into arrangements for the R&D, manufacture and/or commercialization of products and product candidates. These arrangements may require us to deliver various rights, services and/or goods across the entire life cycle of a product or product candidate, including (i) intellectual property rights/licenses, (ii) R&D services, (iii) manufacturing services and/or (iv) commercialization services. The underlying terms of these arrangements generally provide for consideration to Amgen in the form of non-refundable upfront license payments, R&D and commercial performance milestone payments, cost sharing and/or royalty payments. | |
In arrangements involving the delivery of more than one element, each required deliverable is evaluated to determine whether it qualifies as a separate unit of accounting. For Amgen, this determination is generally based on whether the deliverable has “stand-alone value” to the customer. The arrangement’s consideration that is fixed and determinable is then allocated to each separate unit of accounting based on the relative selling price of each deliverable. The estimated selling price of each deliverable is determined using the following hierarchy of values: (i) vendor-specific objective evidence of fair value, (ii) third-party evidence of selling price and (iii) best estimate of selling price (BESP). The BESP reflects our best estimate of what the selling price would be if the deliverable was regularly sold by us on a stand-alone basis. In general, the consideration allocated to each unit of accounting is recognized as the related goods or services are delivered, limited to the consideration that is not contingent upon future deliverables. Consideration associated with at-risk substantive performance milestones is recognized as revenue upon the achievement of the related milestone, as defined in the respective contracts. | |
Research and development costs | |
R&D costs are expensed as incurred and include primarily salaries, benefits and other staff-related costs; facilities and overhead costs; clinical trial and related clinical manufacturing costs; contract services and other outside costs; information systems’ costs and amortization of acquired technology used in R&D with alternative future uses. R&D expenses also include costs and cost recoveries associated with third-party R&D arrangements such as with K-A, including upfront fees and milestones paid to third parties in connection with technologies which had not reached technological feasibility and did not have an alternative future use. Net payment or reimbursement of R&D costs is recognized when the obligations are incurred or as we become entitled to the cost recovery. See Note 7, Collaborative arrangements, and Note 8, Related party transactions. | |
Selling, general and administrative costs | |
Selling, general and administrative (SG&A) costs are comprised primarily of salaries, benefits and other staff-related costs associated with sales and marketing, finance, legal and other administrative personnel; facilities and overhead costs; outside marketing, advertising and legal expenses; the U.S. healthcare reform federal excise fee on Branded Prescription Pharmaceutical Manufacturers and Importers; and other general and administrative costs. Advertising costs are expensed as incurred. SG&A expenses also include costs and cost recoveries associated with marketing and promotion efforts under certain collaboration arrangements. Net payment or reimbursement of SG&A costs is recognized when the obligations are incurred or we become entitled to the cost recovery. See Note 7, Collaborative arrangements. | |
Stock-based compensation | |
We have stock-based compensation plans under which various types of equity-based awards are granted, including restricted stock units (RSUs), performance units and stock options. The estimated fair values of RSUs and stock option awards which are subject only to service conditions with graded vesting are generally recognized as compensation expense on a straight-line basis over the service period. The estimated fair values of performance unit awards are generally recognized as compensation expense as the awards vest ratably from the grant date to the end of the performance period. See Note 4, Stock-based compensation. | |
Income taxes | |
We provide for income taxes based on pretax income and applicable tax rates available in the various jurisdictions in which we operate. Deferred income taxes are recorded for the expected tax consequences of temporary differences between the bases of assets and liabilities for financial reporting purposes and amounts recognized for income tax purposes. We record a valuation allowance to reduce our deferred tax assets to the amount of future tax benefit that is more likely than not to be realized. | |
We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities based on the technical merits of the position. The tax benefit recognized in the financial statements for a particular tax position is based on the largest benefit that is more likely than not to be realized. The amount of unrecognized tax benefits (UTBs) is adjusted as appropriate for changes in facts and circumstances, such as significant amendments to existing tax law, new regulations or interpretations by the taxing authorities, new information obtained during a tax examination, or resolution of an examination. We recognize both accrued interest and penalties, where appropriate, related to UTBs in income tax expense. See Note 5, Income taxes. | |
Business combinations | |
Business combinations are accounted for using the acquisition method of accounting. Under the acquisition method, assets acquired, including in-process research and development (IPR&D) projects, and liabilities assumed are recorded at their respective fair values as of the acquisition date in our consolidated financial statements. The excess of the fair value of consideration transferred over the fair value of the net assets acquired is recorded as goodwill. Contingent consideration obligations incurred in connection with a business combination (including the assumption of an acquiree's liability arising from a business combination it consummated prior to our acquisition) are recorded at their fair values on the acquisition date and remeasured at their fair values each subsequent reporting period until the related contingencies are resolved. The resulting changes in fair values are recorded in earnings. See Note 3, Business combinations, and Note 16, Fair value measurement. | |
Cash equivalents | |
We consider cash equivalents to be only those investments which are highly liquid, readily convertible to cash and which mature within three months from the date of purchase. | |
Available-for-sale investments | |
We consider our investment portfolio available-for-sale and, accordingly, these investments are recorded at fair value with unrealized gains and losses generally recorded in other comprehensive income. Investments with maturities beyond one year, other than Restricted investments, may be classified as short-term marketable securities in the Consolidated Balance Sheets due to their highly liquid nature and because they represent the Company's investments that are available for current operations. See Note 9, Available-for-sale investments, and Note 16, Fair value measurement. | |
Inventories | |
Inventories are stated at the lower of cost or market. Cost, which includes amounts related to materials, labor and overhead, is determined in a manner that approximates the first-in, first-out method. See Note 10, Inventories. | |
Derivatives | |
We recognize all of our derivative instruments as either assets or liabilities at fair value in the Consolidated Balance Sheets. The accounting for changes in the fair value of a derivative instrument depends upon whether the derivative has been formally designated and qualifies as part of a hedging relationship under the applicable accounting standards and, further, on the type of hedging relationship. For derivatives formally designated as hedges, we assess both at inception and quarterly thereafter, whether the hedging derivatives are highly effective in offsetting changes in either the fair value or cash flows of the hedged item. Our derivatives that are not designated and do not qualify as hedges are adjusted to fair value through current earnings. See Note 16, Fair value measurement, and Note 17, Derivative instruments. | |
Property, plant and equipment, net | |
Property, plant and equipment is recorded at historical cost, net of accumulated depreciation, amortization and, if applicable, impairment charges. We review our property, plant and equipment assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Depreciation is provided over the assets’ useful lives on a straight-line basis. Leasehold improvements are amortized on a straight-line basis over the shorter of their estimated useful lives or lease terms. See Note 11, Property, plant and equipment. | |
Goodwill and other intangible assets | |
Finite-lived intangible assets are recorded at cost, net of accumulated amortization and, if applicable, impairment charges. Amortization of finite-lived intangible assets is provided over their estimated useful lives on a straight-line basis or the pattern in which economic benefits are consumed, if reliably determinable. We review our finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. See Note 12, Goodwill and other intangible assets. | |
The estimated fair values of IPR&D projects acquired in a business combination which are not complete are capitalized and accounted for as indefinite-lived intangible assets until completion or abandonment of the related R&D efforts. Upon successful completion of the project, the capitalized amount is amortized over its estimated useful life. If a project is abandoned, all remaining capitalized amounts are written-off immediately. There are often major risks and uncertainties associated with IPR&D projects as we are required to obtain regulatory approvals in order to be able to market the resulting products. Such approvals require completing clinical trials that demonstrate a product candidate is safe and effective. Consequently, the eventual realized value of the acquired IPR&D project may vary from its estimated fair value at the date of acquisition, and IPR&D impairment charges may occur in future periods. | |
Capitalized IPR&D projects are tested for impairment annually and whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. We consider various factors for potential impairment, including the current legal and regulatory environment and the competitive landscape. Adverse clinical trial results, significant delays in obtaining marketing approval, the inability to bring a product to market and the introduction or advancement of competitors' products could result in the related intangible assets to be partially or fully impaired. | |
We perform an impairment test of goodwill annually and whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. To date, an impairment of goodwill has not been recorded. See Note 12, Goodwill and other intangible assets. | |
Restricted investments | |
As of December 31, 2013, we had restricted investments on our Consolidated Balance Sheet that were owned by ATL Holdings Limited (ATL Holdings), a wholly-owned subsidiary. ATL Holdings was an entity distinct from the Company and its other subsidiaries, with separate assets and liabilities. Because certain third parties owned Class A preferred shares of ATL Holdings, this entity was required to hold restricted investments, which were composed of interest-bearing securities, cash and related interest receivable as of December 31, 2013. On May 22, 2014, the Company repurchased all of the outstanding Class A preferred shares, and therefore, there were no remaining restricted investments on our Consolidated Balance Sheet as of December 31, 2014. See Note 14, Financing arrangements. | |
Contingencies | |
In the ordinary course of business, we are involved in various legal proceedings and other matters such as intellectual property disputes, contractual disputes, governmental investigations and class action suits which are complex in nature and have outcomes that are difficult to predict. Certain of these proceedings are discussed in Note 18, Contingencies and commitments. 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 consider all relevant factors when making assessments regarding these contingencies. | |
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. | |
Foreign currency translation | |
The net assets of international subsidiaries where the local currencies have been determined to be the functional currencies are translated into U.S. dollars using current exchange rates. The U.S. dollar effects that arise from translating net assets of these subsidiaries at changing rates are recognized in other comprehensive income. The earnings of these subsidiaries are translated into U.S. dollars using average exchange rates. | |
Recent accounting pronouncements | |
In May 2014, a new accounting standard was issued that amends the guidance for the recognition of revenue from contracts with customers to transfer goods and services. This new standard will be effective for interim and annual periods beginning January 1, 2017, is required to be adopted retrospectively and early adoption is not permitted. We are currently evaluating the provisions of this new standard and have not yet determined what impact it will have on our financial statements. |
Restructuring_and_other_cost_s
Restructuring and other cost savings initiatives | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||
Restructuring and other cost savings initiatives | Restructuring and other cost savings initiatives | ||||||||||||||||||||
During the second half of 2014, we initiated a restructuring plan to invest in continuing innovation and the launch of our new pipeline molecules, while improving our cost structure. As part of the plan, we stated that we would reduce our staff by 3,500 to 4,000 by the end of 2015 and close our facilities in Washington state and Colorado and reduce the number of buildings at our headquarters in Thousand Oaks, California. | |||||||||||||||||||||
We currently estimate that $935 million to $1,035 million of pre-tax restructuring charges will be incurred in connection with the implementation of our restructuring plan. Included in these amounts are: (i) separation costs of $535 million to $585 million with respect to the staff reductions, and (ii) asset related charges of $400 million to $450 million consisting primarily of asset impairments, accelerated depreciation and other related costs resulting from the consolidation of our worldwide facilities. | |||||||||||||||||||||
During the year ended December 31, 2014, we initiated the above-noted actions and incurred $558 million of restructuring costs. We expect that substantially all remaining restructuring actions and related estimated costs, as discussed above, will be incurred during 2015. | |||||||||||||||||||||
The following table summarizes the charges recorded related to the restructuring plan by type of activity and the locations recognized within the Consolidated Statement of Income (in millions): | |||||||||||||||||||||
During the year ended December 31, 2014 | |||||||||||||||||||||
Separation Costs | Asset Impairments | Accelerated Depreciation | Other | Total | |||||||||||||||||
Cost of sales | $ | — | $ | 81 | $ | 23 | $ | — | $ | 104 | |||||||||||
Research and development | — | — | 28 | 21 | 49 | ||||||||||||||||
Selling, general and administrative | — | — | 4 | 5 | 9 | ||||||||||||||||
Other | 377 | 6 | — | 13 | 396 | ||||||||||||||||
Total | $ | 377 | $ | 87 | $ | 55 | $ | 39 | $ | 558 | |||||||||||
Asset impairment and accelerated depreciation charges were recognized in connection with our decision to exit Boulder and Longmont, Colorado and Bothell and Seattle, Washington, as well as the consolidation of facilities in Thousand Oaks, California. The decision to accelerate the closure of these manufacturing and R&D facilities was based principally on optimizing the utilization of our sites in the United States, which includes an expansion of our presence in the key U.S. biotechnology hubs of South San Francisco, California, and Cambridge, Massachusetts. | |||||||||||||||||||||
The following table summarizes the expenses (excluding non-cash charges) and payments regarding liabilities related to the restructuring plan (in millions): | |||||||||||||||||||||
During the year ended December 31, 2014 | |||||||||||||||||||||
Separation Costs | Other | Total | |||||||||||||||||||
Restructuring liabilities as of January 1, 2014 | $ | — | $ | — | $ | — | |||||||||||||||
Expense | 353 | 32 | 385 | ||||||||||||||||||
Payments | (132 | ) | (9 | ) | (141 | ) | |||||||||||||||
Restructuring liabilities as of December 31, 2014 | $ | 221 | $ | 23 | $ | 244 | |||||||||||||||
Other cost savings initiatives | |||||||||||||||||||||
In addition to, and separate from, the restructuring plan above, we incurred other charges as part of our efforts to optimize our network of facilities and improve cost efficiencies in our operations: | |||||||||||||||||||||
• | In 2012, we determined that certain manufacturing facilities located in Boulder, Colorado, were no longer needed and accordingly, they were abandoned during the fourth quarter. This resulted in the write-off of the carrying value of the facility, which aggregated $118 million, during the year ended December 31, 2012. The amount is included in Cost of sales in the Consolidated Statement of Income. | ||||||||||||||||||||
• | During the years ended December 31, 2013 and 2012, we recorded certain charges aggregating approximately $71 million and $175 million, respectively, which are included in Other operating expenses in the Consolidated Statements of Income. The expenses are primarily severance-related. The 2012 charges also included expenses associated with abandoning leased facilities. |
Business_combinations
Business combinations | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||
Business combinations | Business combinations | ||||||||||||||||
Onyx Pharmaceuticals | |||||||||||||||||
On October 1, 2013, we acquired all of the outstanding stock of Onyx Pharmaceuticals, Inc. (Onyx), a global biopharmaceutical company engaged in the development and commercialization of innovative therapies for improving the lives of people afflicted with cancer. Onyx has a multiple myeloma franchise, with Kyprolis® for Injection (marketed by Onyx, an Amgen subsidiary) already approved in the United States, and with oprozomib being evaluated in clinical trials for patients with hematologic malignancies. In addition, Onyx has three partnered oncology assets: Nexavar® tablets (an Onyx and Bayer compound), Stivarga® tablets (a Bayer compound), and palbociclib (a Pfizer, Inc. (Pfizer) compound). This transaction, which was accounted for as a business combination, provides us with an opportunity to expand our oncology franchise. Onyx’s operations have been included in our consolidated financial statements commencing on the acquisition date. | |||||||||||||||||
The aggregate consideration to acquire Onyx was paid in cash and consisted of (in millions): | |||||||||||||||||
Total consideration transferred | $ | 9,517 | |||||||||||||||
Compensation expense | 197 | ||||||||||||||||
Total cash paid | $ | 9,714 | |||||||||||||||
The $9,517 million cash payment consisted of a $9,186 million cash payment to the outstanding common stockholders and a $331 million cash payment to the Onyx equity award holders for services rendered prior to October 1, 2013 under the Onyx equity award plans. The remaining $197 million of cash, which related to the accelerated vesting of the remaining Onyx equity awards, was recognized as compensation expense during the three months ended December 31, 2013. This amount was included primarily in Selling, general and administrative expense in the Consolidated Statement of Income. | |||||||||||||||||
The consideration to acquire Onyx was allocated to the acquisition date fair values of assets acquired and liabilities assumed as follows (in millions): | |||||||||||||||||
Cash and cash equivalents | $ | 319 | |||||||||||||||
Marketable securities | 337 | ||||||||||||||||
Inventories | 170 | ||||||||||||||||
Indefinite-lived intangible assets - IPR&D | 1,180 | ||||||||||||||||
Finite-lived intangible assets - Developed product technology rights | 6,190 | ||||||||||||||||
Finite-lived intangible assets - Licensing rights | 2,792 | ||||||||||||||||
Goodwill | 2,402 | ||||||||||||||||
Convertible debt | (742 | ) | |||||||||||||||
Assumed contingent consideration | (261 | ) | |||||||||||||||
Deferred income taxes, net | (3,011 | ) | |||||||||||||||
Other assets (liabilities), net | 141 | ||||||||||||||||
Total consideration | $ | 9,517 | |||||||||||||||
Onyx’s preliminary goodwill at December 31, 2013 was reduced during the year ended December 31, 2014, by $124 million due primarily to revisions which increased the acquisition date fair values of developed product technology rights by $280 million and deferred income taxes by $93 million, and decreased inventory by $80 million. The adjustments did not have a material effect on our current or prior period financial statements. | |||||||||||||||||
The developed product technology rights acquired relate to Kyprolis® which is approved in the United States. This product technology is being amortized on a straight-line basis over the estimated useful life of 12 years. | |||||||||||||||||
Licensing rights acquired represent the aggregate estimated fair values of receiving future milestone, royalty and/or profit sharing payments associated with various contract agreements that were entered into by Onyx prior to the acquisition. The weighted-average useful life of these finite-lived intangible assets is ten years and they are being amortized on a straight-line basis. | |||||||||||||||||
The fair values of the developed product technology rights and licensing rights acquired were determined by estimating the probability-weighted net cash flows attributable to these rights discounted to present value using a discount rate that represents the estimated rate that market participants would use to value these intangible assets. | |||||||||||||||||
The estimated fair values of acquired IPR&D are related to: (i) the development of Kyprolis® in the territories outside the U.S. (excluding Japan), where regulatory approval to market the product has not been received, and (ii) oprozomib. The estimated fair values were determined using a probability-weighted income approach, which discounts expected future cash flows to present value using a discount rate that represents the estimated rate that market participants would use to value the assets. The projected cash flows from these projects were based on certain assumptions, including estimates of future revenues and expenses, the time and resources needed to complete development and the probabilities of obtaining marketing approval from regulatory agencies. In January 2015, we and Onyx announced the submission of a Marketing Authorization Application (MAA) for Kyprolis® in the European Union (EU) for the treatment of patients with relapsed multiple myeloma who have received at least one prior therapy, and the granting of an accelerated assessment by the European Medicines Agency (EMA). | |||||||||||||||||
We assumed contingent consideration obligations upon the acquisition of Onyx arising from Onyx's 2009 acquisition of Proteolix, Inc. There were two separate milestone payments of $150 million each which were to be triggered if Kyprolis® received specified marketing approvals for relapsed multiple myeloma on or before March 31, 2016, by each of the U.S. Food and Drug Administration (FDA) and the EMA. The assumed contingent consideration value was determined by discounting probability-adjusted cash outflows to present value using a discount rate that represents the estimated rate that market participants would use. In December 2014, we renegotiated the terms of these milestones and have settled the contingent consideration obligations with the former shareholders of Proteolix, Inc. by agreeing to make a single payment of $225 million, which is currently expected to occur during the first quarter of 2015. See Note 16, Fair value measurement. | |||||||||||||||||
The excess of the acquisition date consideration over the fair values assigned to the assets acquired and the liabilities assumed of $2.4 billion was recorded as goodwill, which is not deductible for tax purposes and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized and the expected synergies and other benefits that we believe will result from combining the operations of Onyx with our operations. | |||||||||||||||||
We incurred $36 million of transaction-related expense which was recorded in Selling, general, and administrative expenses in the Consolidated Statement of Income for the year ended December 31, 2013. | |||||||||||||||||
The following table presents supplemental pro forma information as if the acquisition of Onyx had occurred on January 1, 2012 (in millions, unaudited): | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Pro forma net revenues | $ | 19,141 | $ | 17,616 | |||||||||||||
Pro forma net income | 4,848 | 3,700 | |||||||||||||||
The unaudited pro forma consolidated results include pro forma adjustments that assume the acquisition occurred on January 1, 2012. The primary adjustments include: (i) the $197 million cash payment that was paid and recognized as compensation expense during the fourth quarter of 2013 related to the accelerated vesting of the remaining Onyx equity awards was included in the net income attributable to Amgen for the year ended December 31, 2012, and (ii) additional intangible amortization expense of $488 million and $412 million was included in the year ended December 31, 2013 and 2012, respectively. The adjustments also include the impact of additional interest expense on debt issued in connection with the acquisition of Onyx assuming the debt was incurred on January 1, 2012. The unaudited pro forma consolidated results are not necessarily indicative of what our consolidated results of operations actually would have been had we completed the acquisition on January 1, 2012. In addition, the unaudited pro forma consolidated results do not purport to project the future results of operations of the combined company nor do they reflect the expected realization of any cost savings associated with the acquisition. | |||||||||||||||||
Filgrastim and pegfilgrastim rights acquisition | |||||||||||||||||
In October 2013, we entered into an agreement to acquire the licenses to filgrastim and pegfilgrastim effective January 1, 2014 (acquisition date), that were held by F. Hoffmann-La Roche Ltd. (Roche) in approximately 100 markets in Eastern Europe, Latin America, Asia, the Middle East and Africa (Product Rights), and to settle our preexisting relationship related to the Product Rights for total consideration of $497 million. The acquisition of the Product Rights was accounted for as a business combination as the acquired rights and processes are capable of producing an immediate return to us, and the settlement of the preexisting relationship was accounted for separately from the business combination. | |||||||||||||||||
This transaction provides us with an opportunity to expand our geographic presence and reach more patients in more countries that could benefit from our therapies. The operations of the acquired set of activities have been included in our financial statements commencing on the acquisition date. Pro forma results of operations for this acquisition have not been presented because this acquisition is not material to our consolidated results of operations. | |||||||||||||||||
The aggregate consideration transferred consisted of (in millions): | |||||||||||||||||
Total consideration transferred | $ | 497 | |||||||||||||||
Settlement of preexisting relationship at fair value | (99 | ) | |||||||||||||||
Total consideration transferred to acquire the Product Rights | $ | 398 | |||||||||||||||
The settlement of the preexisting relationship relates to a supply contract between Amgen and Roche that was terminated as a result of the acquisition of the Product Rights. The fair value of the contract of $99 million was recognized in Cost of sales in the Consolidated Statement of Income for the year ended December 31, 2014. | |||||||||||||||||
The consideration to acquire the Product Rights was allocated to the acquisition date fair values of assets as follows (in millions): | |||||||||||||||||
Finite-lived intangible assets - Marketing-related rights | $ | 363 | |||||||||||||||
Finite-lived intangible assets - Developed product technology rights | 11 | ||||||||||||||||
Goodwill | 3 | ||||||||||||||||
Other assets | 21 | ||||||||||||||||
Total consideration | $ | 398 | |||||||||||||||
The marketing-related and developed product technology rights acquired relate to the Product Rights and are being amortized on a straight-line basis over their estimated useful lives of five years and three and one-half years, respectively. | |||||||||||||||||
deCODE Genetics | |||||||||||||||||
On December 10, 2012, we acquired for cash all of the outstanding stock of deCODE Genetics (deCODE), a privately held company that is a global leader in human genetics. The transaction provides us with an opportunity to enhance our efforts to identify and validate human disease targets. Consideration was allocated primarily to a finite-lived intangible asset of discovery capacity in the genetics of human diseases with an estimated useful life of 10 years. | |||||||||||||||||
KAI Pharmaceuticals | |||||||||||||||||
On July 5, 2012, we acquired for cash all of the outstanding stock of KAI Pharmaceuticals (KAI), a privately held biotechnology company that developed AMG 416, its lead product candidate, which is now in phase 3 clinical development for the treatment of secondary hyperparathyroidism in patients with chronic kidney disease (CKD) who are on dialysis. The transaction provides us with an opportunity to further expand our nephrology pipeline. The acquired IPR&D is related to AMG 416. | |||||||||||||||||
Goodwill is attributable primarily to expected synergies and other benefits from combining KAI with our nephrology development and commercialization activities. | |||||||||||||||||
Mustafa Nevzat Pharmaceuticals | |||||||||||||||||
On June 12, 2012, we acquired for cash substantially all of the outstanding stock of Mustafa Nevzat Pharmaceuticals (MN), a privately held company that is a leading supplier of pharmaceuticals to the hospital sector and a major supplier of injectable medicines in Turkey. The transaction provides us with the opportunity to expand our presence in Turkey and the surrounding region. | |||||||||||||||||
The finite-lived intangible assets acquired are related primarily to the fair values of MN's regulatory approvals and customer relationships with regard to the marketing of pharmaceutical products and are being amortized on a straight-line basis over their estimated useful lives. The weighted-average useful life of these intangible assets is eight years. | |||||||||||||||||
Goodwill is attributable primarily to MN's expected continued commercial presence in Turkey and other benefits. | |||||||||||||||||
Micromet, Inc. | |||||||||||||||||
On March 7, 2012, we acquired for cash consideration Micromet, Inc. (Micromet), a publicly held biotechnology company focused on the discovery, development and commercialization of innovative antibody-based therapies for the treatment of cancer. This transaction provides us with an opportunity to further expand our oncology pipeline. | |||||||||||||||||
The estimated fair value of acquired IPR&D is related to blinatumomab and outlicense agreements entered into by Micromet prior to our acquisition of the company where we continue to play an active role in the development of the respective programs. In December 2014, we announced that the FDA has granted approval of BLINCYTO™ for the treatment of patients with Philadelphia chromosome-negative (Ph-) relapsed or refractory B-cell precursor acute lymphoblastic leukemia (ALL). | |||||||||||||||||
During 2014 and 2012, we wrote-off non-key IPR&D outlicensing programs resulting in impairment charges of $46 million and $19 million, respectively. Both of these charges were included in Other operating expenses in the Consolidated Statements of Income. | |||||||||||||||||
The R&D technology rights acquired relate to Micromet's BiTE® technology platform which has produced various product candidates that are currently being developed as cancer treatments by the Company and others and may lead to the development of additional product candidates. The fair value of this technology is being amortized on a straight-line basis over its estimated useful life of 10 years. | |||||||||||||||||
Goodwill is attributable primarily to expected synergies and other benefits from combining Micromet with our oncology development and commercialization activities. | |||||||||||||||||
The consideration to acquire deCODE, KAI, MN, and Micromet was allocated to the acquisition date fair values of the assets acquired and liabilities assumed as follows (in millions): | |||||||||||||||||
deCODE | KAI | MN | Micromet | ||||||||||||||
IPR&D | $ | — | $ | 240 | $ | — | $ | 570 | |||||||||
Developed product technology rights | — | — | 81 | — | |||||||||||||
R&D technology rights | 465 | — | — | 350 | |||||||||||||
Marketing-related rights | — | — | 82 | — | |||||||||||||
Deferred income taxes, net | (37 | ) | (59 | ) | (45 | ) | (191 | ) | |||||||||
Other assets (liabilities), net | (29 | ) | 26 | 179 | 170 | ||||||||||||
Goodwill | — | 125 | 380 | 247 | |||||||||||||
Total consideration | $ | 399 | $ | 332 | $ | 677 | $ | 1,146 | |||||||||
The estimated fair values of intangible assets were primarily determined using a probability-weighted income approach, which discounts expected future cash flows to present value by using a discount rate that represents the estimated rate that market participants would use to value this intangible asset. The projected cash flows were based on certain assumptions, including estimates of future revenues and expenses, the time and resources needed to complete development and the probabilities of obtaining marketing approval from the FDA and other regulatory agencies. | |||||||||||||||||
For all IPR&D projects in the acquisitions discussed above, including Onyx, there are major risks and uncertainties associated with the timely and successful completion of development and commercialization of these product candidates, including our ability to confirm their safety and efficacy based on data from clinical trials, our ability to obtain necessary regulatory approvals and our ability to successfully complete these tasks within budgeted costs. We are not able to market a human therapeutic without obtaining regulatory approvals, and such approvals require completing clinical trials that demonstrate a product candidate is safe and effective. Consequently, the eventual realized value, if any, of these acquired IPR&D projects may vary from their estimated fair values at the dates of acquisition. |
Stockbased_compensation
Stock-based compensation | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Stock-based compensation | Stock-based compensation | ||||||||||||
On May 22, 2013, our stockholders approved our Amended and Restated 2009 Equity Incentive Plan (the Amended 2009 Plan), which amended and restated our 2009 Equity Incentive Plan (the 2009 Plan) and increased the number of shares of our common stock authorized for issuance pursuant to equity-based awards under the 2009 Plan to approximately 104 million shares (plus any additional shares that are added back into the authorized pool as described below). Like the 2009 Plan, the Amended 2009 Plan provides for grants of equity-based awards, including RSUs, stock options and performance units to employees and consultants of Amgen, its subsidiaries and non-employee members of our Board of Directors. The 2009 Plan replaced our prior equity plans (the Prior Plans), and no further awards may be made under these Prior Plans. Consistent with the 2009 Plan, the pool of shares available under the Amended 2009 Plan is reduced by one share for each stock option granted and by 1.9 shares for other types of awards granted, including RSUs and performance units (full-value awards). Generally, if any shares subject to an award granted under the Amended 2009 Plan expire, or are forfeited, terminated or canceled without the issuance of shares, the shares subject to such awards are added back into the authorized pool on the same basis that they were removed. In addition, under the Amended 2009 Plan, shares withheld to pay for minimum statutory tax obligations with respect to full value awards will be added back into the authorized pool on the basis of 1.9 shares. As of December 31, 2014, the Amended 2009 Plan provides for future grants and/or issuances of up to approximately 52 million shares of our common stock. Stock-based awards under our employee compensation plans are made with newly issued shares reserved for this purpose. | |||||||||||||
The following table reflects the components of stock-based compensation expense recognized in our Consolidated Statements of Income (in millions): | |||||||||||||
Years ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
RSUs | $ | 219 | $ | 206 | $ | 186 | |||||||
Performance units | 171 | 163 | 117 | ||||||||||
Stock options | 18 | 34 | 59 | ||||||||||
Total stock-based compensation expense, pretax | 408 | 403 | 362 | ||||||||||
Tax benefit from stock-based compensation expense | (152 | ) | (149 | ) | (134 | ) | |||||||
Total stock-based compensation expense, net of tax | $ | 256 | $ | 254 | $ | 228 | |||||||
Restricted stock units and stock options | |||||||||||||
Eligible employees generally receive a grant of RSUs annually with the size and type of award generally determined by the employee’s salary grade and performance level. In addition, certain management and professional level employees typically receive RSU grants upon commencement of employment. Prior to 2012, eligible employees also received a grant of stock options annually. Prior to February 2013, non-employee members of our Board of Directors (outside directors) received a grant of RSUs and stock options annually and received a grant of stock options in connection with their appointment to the Board of Directors. Beginning in April 2013, outside directors receive only annual grants of RSUs. | |||||||||||||
Our RSU and stock option grants provide for accelerated or continued vesting in certain circumstances as defined in the plans and related grant agreements, including upon death, disability, a change in control, termination in connection with a change in control and the retirement of employees who meet certain service and/or age requirements. RSUs and stock options granted prior to April 25, 2011, generally vest in equal amounts on each of the first four anniversaries of the grant date. Stock options and RSUs granted on and after April 25, 2011, generally vest in approximately equal amounts on the second, third and fourth anniversaries of the grant date. RSUs granted on and after April 27, 2012, accrue dividend equivalents which are typically payable in shares and only when and to the extent the underlying RSUs vest and are issued to the recipient. | |||||||||||||
Restricted stock units | |||||||||||||
The grant date fair value of an RSU equaled the closing price of our common stock on the grant date for RSUs granted prior to April 25, 2011, and on and after April 27, 2012. Prior to April 2011, we did not have a policy of paying dividends, and beginning April 27, 2012, RSUs granted accrue dividend equivalents during the vesting period. The fair values of RSUs granted on April 25, 2011 through April 26, 2012, are based on the closing price of our common stock on the grant date reduced by the weighted-average expected dividend yield of 2.0% over the weighted-average vesting period, discounted at a weighted-average risk-free interest rate of 1.0%. The weighted-average grant date fair values of RSUs granted in 2014, 2013 and 2012 were $115.63, $107.01 and $72.99, respectively. The following summarizes select information regarding our RSUs: | |||||||||||||
During the year ended December 31, 2014 | |||||||||||||
Units | Weighted-average | ||||||||||||
(in millions) | grant date | ||||||||||||
fair value | |||||||||||||
Balance nonvested at December 31, 2013 | 8.8 | $ | 76.75 | ||||||||||
Granted | 2.3 | $ | 115.63 | ||||||||||
Vested | (3.0 | ) | $ | 63.36 | |||||||||
Forfeited | (1.0 | ) | $ | 90.77 | |||||||||
Balance nonvested at December 31, 2014 | 7.1 | $ | 92.88 | ||||||||||
The total fair values of shares associated with RSUs that vested during the years ended December 31, 2014, 2013 and 2012, were $191 million, $145 million and $139 million, respectively. | |||||||||||||
As of December 31, 2014, there were approximately $357 million of unrecognized compensation costs related to nonvested stock option and RSU awards, which are expected to be recognized over a weighted-average period of 1.7 years. | |||||||||||||
Stock options | |||||||||||||
The exercise price for stock options is set at the closing price of our common stock on the date of grant and the related number of shares granted is fixed at that point in time. Awards granted to employees on and after April 26, 2010, expire 10 years from the date of grant; options granted to employees prior to that date expire seven years from the date of grant. We did not grant stock options during the year ended December 31, 2014, and stock options granted during the years ended December 31, 2013 and 2012, were not significant. | |||||||||||||
The following summarizes select information regarding our stock options: | |||||||||||||
During the year ended December 31, 2014 | |||||||||||||
Options | Weighted- | Weighted- | Aggregate | ||||||||||
(in millions) | average | average | intrinsic | ||||||||||
exercise price | remaining | value | |||||||||||
contractual | (in millions) | ||||||||||||
life (years) | |||||||||||||
Balance unexercised at December 31, 2013 | 7.4 | $ | 54.91 | ||||||||||
Granted | — | $ | — | ||||||||||
Exercised | (3.1 | ) | $ | 55.42 | |||||||||
Expired/forfeited | (0.2 | ) | $ | 56.18 | |||||||||
Balance unexercised at December 31, 2014 | 4.1 | $ | 54.48 | 4.2 | $ | 432 | |||||||
Vested or expected to vest at December 31, 2014 | 4.1 | $ | 54.48 | 4.2 | $ | 432 | |||||||
Exercisable at December 31, 2014 | 3.5 | $ | 54.45 | 3.9 | $ | 371 | |||||||
The total intrinsic values of options exercised during the years ended December 31, 2014, 2013 and 2012, were $228 million, $210 million and $320 million, respectively. The actual tax benefits realized from tax deductions from option exercises during the three years ended December 31, 2014, 2013 and 2012, were $83 million, $77 million and $117 million, respectively. | |||||||||||||
Performance units | |||||||||||||
Certain management-level employees also receive annual grants of performance units, which give the recipient the right to receive common stock that is contingent upon achievement of specified pre-established goals over the performance period, which is generally three years. The performance goals for the units granted in 2014, 2013 and 2012, which are accounted for as equity awards, are based upon Amgen’s stockholder return compared with a comparator group of companies, which are considered market conditions and are reflected in the grant date fair values of the units. The expense recognized for the awards is based on the grant date fair value of a unit multiplied by the number of units granted, net of estimated forfeitures. Depending on the outcome of these performance goals, a recipient may ultimately earn a number of units greater or less than the number of units granted. Shares of our common stock are issued on a one-for-one basis for each performance unit earned. In general, participants vest in their performance unit awards at the end of the performance period. The performance award program provides for accelerated or continued vesting in certain circumstances as defined in the plan, including upon death, disability, a change in control and retirement of employees who meet certain service and/or age requirements. Performance units accrue dividend equivalents which are typically payable in shares and only when and to the extent the underlying performance units vest and are issued to the recipient, including with respect to market conditions that affect the number of performance units earned. | |||||||||||||
We used payout simulation models to estimate the grant date fair value of performance units granted in 2014, 2013 and 2012. The weighted-average assumptions used in these models and the resulting weighted-average grant date fair values of our performance units were as follows: | |||||||||||||
Years ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Closing price of our common stock on grant date | $ | 112.43 | $ | 92.03 | $ | 68.75 | |||||||
Volatility | 23.8 | % | 21 | % | 22.9 | % | |||||||
Risk-free interest rate | 0.8 | % | 0.4 | % | 0.5 | % | |||||||
Fair value of unit | $ | 104.47 | $ | 102.73 | $ | 78.21 | |||||||
The payout simulation models also assumed correlations of returns of the stock prices of our common stock and the common stocks of the comparator groups of companies and stock price volatilities of the comparator groups of companies. | |||||||||||||
As of December 31, 2014 and 2013, a total of 5.8 million and 6.6 million performance units were outstanding with weighted-average grant date fair values of $92.66 and $76.95 per unit, respectively. During the year ended December 31, 2014, 1.7 million performance units with a weighted-average grant date fair value of $104.47 were granted, 3.7 million performance units with a weighted-average grant date fair value of $77.89 vested, and 0.5 million performance units with a weighted-average grant date fair value of $95.01 were forfeited. | |||||||||||||
The total fair values of performance units that vested during 2014, 2013 and 2012 were $587 million, $270 million and $100 million, respectively, based upon the number of performance units earned multiplied by the closing stock price of our common stock on the last day of the performance period. | |||||||||||||
As of December 31, 2014, there was approximately $133 million of unrecognized compensation cost related to the 2014 and 2013 performance unit grants that is expected to be recognized over a weighted-average period of approximately 0.9 years. |
Income_taxes
Income taxes | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income taxes | Income taxes | |||||||||||
The provision for income taxes included the following (in millions): | ||||||||||||
Years ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current provision: | ||||||||||||
Federal | $ | 251 | $ | 54 | $ | 438 | ||||||
State | 58 | 26 | 47 | |||||||||
Foreign | 194 | 191 | 158 | |||||||||
Total current provision | 503 | 271 | 643 | |||||||||
Deferred provision (benefit): | ||||||||||||
Federal | (22 | ) | (86 | ) | 83 | |||||||
State | (4 | ) | 19 | (43 | ) | |||||||
Foreign | (50 | ) | (20 | ) | (19 | ) | ||||||
Total deferred provision (benefit) | (76 | ) | (87 | ) | 21 | |||||||
Total provision | $ | 427 | $ | 184 | $ | 664 | ||||||
Deferred income taxes reflect the tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, tax credit carryforwards and the tax effects of net operating loss (NOL) carryforwards. | ||||||||||||
Significant components of our deferred tax assets and liabilities were as follows (in millions): | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Deferred income tax assets: | ||||||||||||
NOL and credit carryforwards | $ | 588 | $ | 1,017 | ||||||||
Expense accruals | 730 | 697 | ||||||||||
Expenses capitalized for tax | 221 | 196 | ||||||||||
Stock-based compensation | 206 | 211 | ||||||||||
Other | 191 | 144 | ||||||||||
Total deferred income tax assets | 1,936 | 2,265 | ||||||||||
Valuation allowance | (336 | ) | (314 | ) | ||||||||
Net deferred income tax assets | 1,600 | 1,951 | ||||||||||
Deferred income tax liabilities: | ||||||||||||
Acquired intangibles | (4,089 | ) | (4,430 | ) | ||||||||
Other | (232 | ) | (263 | ) | ||||||||
Total deferred income tax liabilities | (4,321 | ) | (4,693 | ) | ||||||||
Total deferred income taxes, net | $ | (2,721 | ) | $ | (2,742 | ) | ||||||
Valuation allowances are provided to reduce the amounts of our deferred tax assets to an amount that is more likely than not to be realized based on an assessment of positive and negative evidence, including estimates of future taxable income necessary to realize future deductible amounts. | ||||||||||||
The valuation allowance for deferred tax assets increased by $22 million and $41 million in 2014 and 2013, respectively, due primarily to valuation allowances established as part of acquisitions and the Company’s expectation that some state NOLs and R&D credits will not be utilized. | ||||||||||||
At December 31, 2014, we had $39 million of federal tax credit carryforwards available to reduce future federal income taxes and have provided a valuation allowance for $21 million of those federal tax credit carryforwards. The federal tax credit carryforwards for which no valuation allowance has been provided expire between 2031 and 2033. We had $341 million of state tax credit carryforwards available to reduce future state income taxes and have provided a valuation allowance for $222 million of those state tax credit carryforwards. The majority of the state tax credit carryforwards have no expiry. | ||||||||||||
At December 31, 2014, we had $97 million of NOL carryforwards available to reduce future federal income taxes and have provided a valuation allowance for $83 million of those federal NOL carryforwards. The federal NOL carryforwards, for which no valuation allowance has been provided, expire between 2020 and 2031. We had $697 million of NOL carryforwards available to reduce future state income taxes and have provided a valuation allowance for $421 million of those state NOL carryforwards. The state NOLs for which no valuation allowance has been provided expire between 2015 and 2031. We had $1.3 billion of NOL carryforwards available to reduce future foreign income taxes and have provided a valuation allowance for $770 million of those foreign NOL carryforwards. The majority of the foreign NOLs have no expiry; the remaining foreign NOLs expire between 2015 and 2024. | ||||||||||||
The reconciliations of the total gross amounts of UTBs (excluding interest, penalties, foreign tax credits and the federal tax benefit of state taxes related to UTBs) were as follows (in millions): | ||||||||||||
During the years ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Balance at beginning of year | $ | 1,415 | $ | 1,200 | $ | 975 | ||||||
Additions based on tax positions related to the current year | 379 | 335 | 300 | |||||||||
Additions based on tax positions related to prior years | 37 | 96 | 5 | |||||||||
Reductions for tax positions of prior years | (45 | ) | (192 | ) | (50 | ) | ||||||
Reductions for expiration of statute of limitations | (12 | ) | — | — | ||||||||
Settlements | (2 | ) | (24 | ) | (30 | ) | ||||||
Balance at end of year | $ | 1,772 | $ | 1,415 | $ | 1,200 | ||||||
Substantially all of the UTBs as of December 31, 2014, if recognized, would affect our effective tax rate. During the year ended December 31, 2013, we settled our examination with the Internal Revenue Service (IRS) for the years ended December 31, 2007, 2008 and 2009. During the year ended December 31, 2012, we settled examinations with various state and foreign tax authorities for prior tax years. As a result of these developments, we remeasured our UTBs accordingly. As of December 31, 2014, we believe it is reasonably possible that our gross liabilities for UTBs may decrease by approximately $70 million within the succeeding twelve months due to the resolution of state audits. | ||||||||||||
Interest and penalties related to UTBs are included in our provision for income taxes. During 2014, 2013 and 2012, we accrued approximately $35 million, $32 million and $30 million, respectively, of interest and penalties through the income tax provision in the Consolidated Statements of Income. At December 31, 2014 and 2013, accrued interest and penalties associated with UTBs totaled approximately $134 million and $99 million, respectively. | ||||||||||||
The reconciliations between the federal statutory tax rate applied to income before income taxes and our effective tax rate were as follows: | ||||||||||||
Years ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Federal statutory tax rate | 35 | % | 35 | % | 35 | % | ||||||
Foreign earnings, including earnings invested indefinitely | (22.4 | )% | (21.3 | )% | (17.8 | )% | ||||||
Credits, Puerto Rico Excise Tax | (4.4 | )% | (4.7 | )% | (5.2 | )% | ||||||
Credits, primarily federal R&D | (1.5 | )% | (3.0 | )% | 0 | % | ||||||
State taxes | 0.7 | % | 0.8 | % | 0.6 | % | ||||||
Audit settlements (federal, state, foreign) | 0 | % | (3.7 | )% | 0.3 | % | ||||||
Other, net | 0.2 | % | 0.4 | % | 0.4 | % | ||||||
Effective tax rate | 7.6 | % | 3.5 | % | 13.3 | % | ||||||
The effective tax rates for the years ended December 31, 2014, 2013 and 2012, 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 the United States. Substantially all of the benefit from foreign earnings on our effective tax rate results from foreign income associated with the Company’s operation conducted in Puerto Rico that is subject to a tax incentive grant that expires in 2020. At December 31, 2014, the cumulative amount of these earnings was approximately $29.3 billion. If these earnings were repatriated to the United States, we would be required to accrue and pay approximately $10.5 billion of additional income taxes based on the current tax rates in effect. | ||||||||||||
Our total foreign income before income taxes was approximately $4.1 billion, $3.7 billion and $3.3 billion for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||
Puerto Rico imposes an excise tax on the gross intercompany purchase price of goods and services from our manufacturer in Puerto Rico. The rate was 3.75% in 2012, 2.75% in the first half of 2013 and 4.0% 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. | ||||||||||||
Because the American Taxpayer Relief Act of 2012 was not enacted until 2013, certain provisions of the Act benefiting the Company's 2012 federal taxes, including the retroactive extension of the R&D tax credit for 2012, were not recognized in the Company's 2012 financial results and instead are reflected in the Company's 2013 financial results. The tax benefit of the retroactive extension of the 2012 R&D tax credit that was recognized in 2013 was $70 million. | ||||||||||||
Income taxes paid during the years ended December 31, 2014, 2013 and 2012, totaled $269 million, $321 million and $502 million, respectively. | ||||||||||||
One or more of our legal entities file income tax returns in the U.S. federal jurisdiction, various U.S. state jurisdictions and certain foreign jurisdictions. Our income tax returns are routinely 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. We are no longer subject to U.S. federal income tax examinations for tax years ended on or before December 31, 2009, or to California state income tax examinations for tax years ended on or before December 31, 2005. We are currently under audit by the IRS for tax years ended December 31, 2010, 2011 and 2012. |
Earnings_per_share
Earnings per share | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
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 (collectively “dilutive securities”). For further information regarding our convertible notes and warrants, see Note 14, Financing arrangements. | ||||||||||||
The computation for basic and diluted EPS was as follows (in millions, except per share data): | ||||||||||||
Years ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Income (Numerator): | ||||||||||||
Net income for basic and diluted EPS | $ | 5,158 | $ | 5,081 | $ | 4,345 | ||||||
Shares (Denominator): | ||||||||||||
Weighted-average shares for basic EPS | 759 | 753 | 775 | |||||||||
Effect of dilutive securities | 11 | 12 | 12 | |||||||||
Weighted-average shares for diluted EPS | 770 | 765 | 787 | |||||||||
Basic EPS | $ | 6.8 | $ | 6.75 | $ | 5.61 | ||||||
Diluted EPS | $ | 6.7 | $ | 6.64 | $ | 5.52 | ||||||
For the years ended December 31, 2014 and 2013, the number of anti-dilutive employee stock-based awards excluded from the computation of diluted EPS was not significant. For the year ended December 31, 2012, there were employee stock-based awards, calculated on a weighted-average basis, to acquire 6 million shares of our common stock that are not included in the computation of diluted EPS because their impact would have been anti-dilutive. |
Collaborative_arrangements
Collaborative arrangements | 12 Months Ended |
Dec. 31, 2014 | |
Collaborative arrangements [Abstract] | |
Collaborative arrangements | Collaborative arrangements |
A collaborative arrangement is a contractual arrangement that involves a joint operating activity. These arrangements involve two or more parties who are both: (i) active participants in the activity; and (ii) exposed to significant risks and rewards dependent on the commercial success of the activity. | |
From time to time, we enter into collaborative arrangements for the R&D, manufacture and/or commercialization of products and/or product candidates. These collaborations generally provide for non-refundable upfront license fees, development and commercial performance milestone payments, cost sharing, royalty payments and/or profit sharing. Our collaboration agreements are performed with no guarantee of either technological or commercial success and each is unique in nature. Our significant arrangements are discussed below. | |
Pfizer Inc. | |
The co-promotion term of our Enbrel® collaboration agreement with Pfizer in the United States and Canada expired on October 31, 2013. Under the collaboration agreement in which we were the principal participant, Amgen and Pfizer shared in the agreed-upon selling and marketing expenses approved by a joint committee. We paid Pfizer a percentage of annual gross profits on our ENBREL sales in the United States and Canada on a scale that increased with gross profits; however, we maintained a majority share of ENBREL profits. Upon expiration of the co-promotion term, we are required to pay Pfizer residual royalties based on a declining percentage of annual net ENBREL sales in the United States and Canada for three years, ranging from 12% to 10%. The amounts of such payments are significantly less than what was owed based on the terms of the previous ENBREL profit share. Effective November 1, 2016, there will be no further royalty payments. | |
The aggregate net amounts due to Pfizer under this arrangement for the ENBREL profit share and the royalties on ENBREL sales after the expiration of the co-promotion term, net of their share of selling and marketing expense was $1.3 billion during each of the years ended December 31, 2013 and 2012. During the year ended December 31, 2014, royalties due to Pfizer on ENBREL sales were $509 million. These amounts are included in Selling, general and administrative expense in the Consolidated Statements of Income. | |
Glaxo Group Limited | |
On April 1, 2014, we entered into a Termination and Transition Agreement (the Transition Agreement) which terminated our collaboration with Glaxo Group Limited (Glaxo), a wholly owned subsidiary of GlaxoSmithKline plc, for the commercialization of denosumab for osteoporosis indications for all countries and regions, except for Australia. Prior to the Transition Agreement, the collaboration included the EU, Switzerland, Australia, Norway, Russia and Mexico. We continue to be in a collaboration for the commercialization of denosumab for osteoporosis indications in Australia. We share equally in the commercialization profits and losses related to the collaboration after accounting for expenses, including an amount payable to us in recognition of our discovery and development of denosumab. Glaxo is also responsible for bearing a portion of the cost of certain specified development activities. | |
Prior to the Transition Agreement, Amgen was the principal participant in the collaboration, and accordingly, we recorded product sales to third parties net of estimated returns, rebates and other deductions. During the years ended December 31, 2014, 2013 and 2012, product sales under the collaboration were $67 million, $219 million and $139 million, respectively. During the years end December 31, 2014, 2013 and 2012, net cost recoveries due to/from Glaxo under the collaboration agreement were not material. | |
AstraZeneca Plc. | |
We are in a collaboration with AstraZeneca Plc. (AstraZeneca) to jointly develop and commercialize certain monoclonal antibodies from Amgen's clinical inflammation portfolio, including brodalumab, AMG 139, AMG 157, AMG 181, AMG 557 and AMG 570. The agreement covers the worldwide development and commercialization of these antibodies, except for certain Asian countries for brodalumab and Japan for AMG 557 and AMG 570, which are licensed to other third parties. | |
Under the terms of the agreement, approximately 65% of related development costs for the 2012-2014 periods were funded by AstraZeneca; now, the companies share costs equally. If approved for sale, Amgen would receive a low-single-digit royalty rate for brodalumab and a mid-single-digit royalty rate for the rest of the portfolio, after which the worldwide commercialization profits and losses related to the collaboration products would be shared equally. In 2012, we received a payment of $50 million, in connection with the transfer of technology rights, which was recognized in Other revenues in the Consolidated Statement of Income. During the years ended December 31, 2014, 2013 and 2012, cost recoveries recognized for development costs were $110 million, $194 million and $28 million, respectively, which are included in Research and development expense in the Consolidated Statements of Income. | |
The collaboration agreement will continue in effect unless terminated in accordance with its terms. | |
Takeda Pharmaceutical Company Limited | |
In 2008, we entered into an arrangement with Takeda Pharmaceutical Company Limited (Takeda), that provided Takeda both: (i) the exclusive rights to develop and commercialize for the Japanese market up to 12 molecules, including Vectibix®, from our portfolio across a range of therapeutic areas, including oncology and inflammation (collectively the “Japanese market products”) and (ii) the right to collaborate with us on the worldwide (outside Japan) development and commercialization of our product candidate, motesanib. In 2011, we announced that the motesanib pivotal phase 3 trial (MONET1) had not met its primary objective of demonstrating an improvement in overall survival in patients with advanced non-squamous non-small cell lung cancer. | |
In June 2012, the parties materially modified this arrangement such that Amgen licensed all of its rights to motesanib to Takeda, which now has control over the worldwide development and commercialization of motesanib. Upon modification, we immediately recognized $230 million of the deferred revenue that related to upfront payments we received in 2008 in Other revenues in the Consolidated Statement of Income. | |
During the years ended December 31, 2013 and 2012, cost recoveries from Takeda were $34 million and $74 million, respectively, and are included in Research and development expense in the Consolidated Statements of Income. There were no significant cost recoveries during the year ended December 31, 2014. In addition, for the years ended December 31, 2014, 2013 and 2012, we recognized royalties on sales of Vectibix® in Japan of $17 million, $18 million and $21 million respectively, in Other revenues in the Consolidated Statements of Income. | |
UCB | |
We are in a collaboration with UCB for the development and commercialization of romosozumab. Under the agreement, we received the rights to commercialize romosozumab for all indications in the United States, Canada, Mexico and Japan. UCB has the rights for all EU members at the time of first regulatory approval, Australia and New Zealand. Prior to commercialization, countries that have not been initially designated will be designated to Amgen or UCB in accordance with the terms of the agreement. | |
Generally, development costs are shared equally and we will share equally in the worldwide commercialization profits and losses related to the collaboration after accounting for expenses. | |
The collaboration agreement will continue in effect unless terminated earlier in accordance with its terms. | |
During the years ended December 31, 2014, 2013 and 2012, the net costs recovered from UCB were $96 million, $66 million, and $71 million, respectively, which are included in Research and development expense in the Consolidated Statements of Income. | |
Bayer HealthCare Pharmaceuticals Inc. | |
As a result of our acquisition of Onyx, we are now party to a collaboration with Bayer to jointly develop and commercialize Nexavar® worldwide, except in Japan. The rights to develop and market Nexavar® in Japan are reserved to Bayer. Bayer has no obligation to pay royalties to Amgen for sales of Nexavar® in Japan. | |
Nexavar® is currently marketed and sold in more than 100 countries around the world for the treatment of unresectable liver cancer and advanced kidney cancer. In the United States, Nexavar® is also approved for the treatment of patients with locally recurrent or metastatic, progressive, differentiated thyroid carcinoma refractory to radioactive iodine treatment. Under the related agreements, we are currently funding 50% of mutually agreed R&D costs worldwide, excluding Japan. In the United States, we co-promote Nexavar® with Bayer and share equally in the profits or losses. We contribute half of the overall number of sales force personnel required to market and promote Nexavar® and half of the medical science liaisons to support Nexavar® in the United States. In the United States, each party bears its own sales force and medical science liaison expenses which are not included in the calculation of the profits or losses of the collaboration. Outside of the United States, excluding Japan, Bayer manages all commercialization activities and incurs all of the sales and marketing expenditures, and we reimburse Bayer for half of those expenditures. In all countries outside of the United States, except Japan, we receive 50% of net profits on sales of Nexavar® after deducting certain Bayer-related costs. | |
The collaboration with Bayer will terminate when patents expire that were issued in connection with product candidates discovered under the agreements, or at the time when neither we nor Bayer are entitled to profit sharing under the agreement, whichever happens last. | |
Amgen is acting as an agent under the collaboration and as such, revenue is derived by calculating net sales of Nexavar® to third-party customers and deducting the cost of goods sold, distribution costs, marketing costs, phase 4 clinical trial costs, allocable overhead costs and certain other costs. During the year ended December 31, 2014 and the three months ended December 31, 2013, Amgen recorded a net Nexavar® collaboration profit of $324 million and $78 million, respectively which were recognized as Other revenues in the Consolidated Statements of Income. In addition, during the year ended December 31, 2014 and the three months ended December 31, 2013, net R&D expenses related to the collaboration of $40 million and $13 million, respectively, were recognized in the Consolidated Statements of Income. | |
Other | |
In addition to the collaborations discussed above, we have various others that are not individually significant to our business at this time. Pursuant to the terms of those agreements, we may be required to pay or we may receive additional amounts upon the achievement of various development and commercial milestones which in the aggregate could be significant. We may also incur or have reimbursed to us significant R&D costs if the related product candidate were to advance to late stage clinical trials. In addition, if any products related to these collaborations are approved for sale, we may be required to pay or we may receive significant royalties on future sales. The payment of these amounts, however, is contingent upon the occurrence of various future events, which have a high degree of uncertainty of occurring. |
Related_party_transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
Related party transactions | Related party transactions |
We own a 50% interest in K-A, a corporation formed in 1984 with Kirin Holdings Company, Limited (Kirin) for the development and commercialization of certain products based on advanced biotechnology. All of our rights to manufacture and market certain products including pegfilgrastim, granulocyte colony-stimulating factor, darbepoetin alfa, recombinant human erythropoietin and romiplostim are pursuant to exclusive licenses from K-A, which we currently market under the brand names Neulasta®, NEUPOGEN®/GRANULOKINE®, Aranesp®, EPOGEN®, and Nplate®, respectively. | |
We account for our interest in K-A using the equity method and include our share of K-A’s profits or losses in Selling, general and administrative expense in the Consolidated Statements of Income. Our share of K-A’s profits and losses was a profit of $30 million and losses of $6 million and $24 million, for the years ended December 31, 2014, 2013 and 2012, respectively. The carrying value of our equity method investment in K-A was approximately $0.4 billion and $0.3 billion, as of December 31, 2014 and 2013, respectively, and is included in noncurrent Other assets in the Consolidated Balance Sheets. | |
K-A’s revenues consist of royalty income related to its licensed technology rights. K-A receives royalty income from us, as well as from Kirin and Johnson & Johnson under separate product license contracts for certain geographic areas outside the United States. During the years ended December 31, 2014, 2013 and 2012, K-A earned royalties from us of $301 million, $272 million and $274 million, respectively. These amounts are included in Cost of sales in the Consolidated Statements of Income. | |
K-A’s expenses consist primarily of costs related to R&D activities conducted on its behalf by Amgen and Kirin. K-A pays Amgen and Kirin for such services at negotiated rates. During the years ended December 31, 2014, 2013 and 2012, we earned revenues from K-A of $119 million, $117 million and $115 million, respectively, for certain R&D activities performed on K-A’s behalf. These amounts are recognized as Other revenues in the Consolidated Statements of Income. We may also receive several individually immaterial milestones aggregating $85 million upon the achievement of various substantive success-based development and regulatory approval milestones contingent upon the occurrence of various future events, nearly half of which have a high degree of uncertainty of occurring. During the years ended December 31, 2014, 2013 and 2012, we recorded cost recoveries from K-A of $108 million, $218 million and $142 million, respectively, related to certain third-party costs. These amounts are included in Research and development expense in the Consolidated Statements of Income. | |
As of December 31, 2014 and 2013, we owed K-A $17 million and K-A owed us $22 million, respectively, which are included in Accrued liabilities and Other current assets, respectively, in the Consolidated Balance Sheets. |
Availableforsale_investments
Available-for-sale investments | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
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 December 31, 2014 | Amortized | Gross | Gross | Estimated | |||||||||||||
cost | unrealized | unrealized | fair value | ||||||||||||||
gains | losses | ||||||||||||||||
U.S. Treasury securities | $ | 3,632 | $ | 22 | $ | (8 | ) | $ | 3,646 | ||||||||
Other government-related debt securities: | |||||||||||||||||
U.S. | 530 | 1 | (3 | ) | 528 | ||||||||||||
Foreign and other | 1,572 | 21 | (24 | ) | 1,569 | ||||||||||||
Corporate debt securities: | |||||||||||||||||
Financial | 6,036 | 21 | (16 | ) | 6,041 | ||||||||||||
Industrial | 6,394 | 23 | (66 | ) | 6,351 | ||||||||||||
Other | 650 | 3 | (4 | ) | 649 | ||||||||||||
Residential mortgage-backed securities | 1,708 | 4 | (10 | ) | 1,702 | ||||||||||||
Other mortgage- and asset-backed securities | 1,837 | — | (41 | ) | 1,796 | ||||||||||||
Money market mutual funds | 3,004 | — | — | 3,004 | |||||||||||||
Other short-term interest-bearing securities | 1,302 | — | — | 1,302 | |||||||||||||
Total interest-bearing securities | 26,665 | 95 | (172 | ) | 26,588 | ||||||||||||
Equity securities | 98 | 48 | (2 | ) | 144 | ||||||||||||
Total available-for-sale investments | $ | 26,763 | $ | 143 | $ | (174 | ) | $ | 26,732 | ||||||||
Type of security as of December 31, 2013 | Amortized | Gross | Gross | Estimated | |||||||||||||
cost | unrealized | unrealized | fair value | ||||||||||||||
gains | losses | ||||||||||||||||
U.S. Treasury securities | $ | 4,737 | $ | 2 | $ | (9 | ) | $ | 4,730 | ||||||||
Other government-related debt securities: | |||||||||||||||||
U.S. | 1,087 | — | (8 | ) | 1,079 | ||||||||||||
Foreign and other | 1,574 | 13 | (41 | ) | 1,546 | ||||||||||||
Corporate debt securities: | |||||||||||||||||
Financial | 3,667 | 28 | (19 | ) | 3,676 | ||||||||||||
Industrial | 3,745 | 36 | (21 | ) | 3,760 | ||||||||||||
Other | 388 | 4 | (2 | ) | 390 | ||||||||||||
Residential mortgage-backed securities | 1,478 | 3 | (21 | ) | 1,460 | ||||||||||||
Other mortgage- and asset-backed securities | 1,555 | 1 | (45 | ) | 1,511 | ||||||||||||
Money market mutual funds | 3,366 | — | — | 3,366 | |||||||||||||
Other short-term interest-bearing securities | 750 | — | — | 750 | |||||||||||||
Total interest-bearing securities | 22,347 | 87 | (166 | ) | 22,268 | ||||||||||||
Equity securities | 85 | 10 | — | 95 | |||||||||||||
Total available-for-sale investments | $ | 22,432 | $ | 97 | $ | (166 | ) | $ | 22,363 | ||||||||
The fair values of available-for-sale investments by classification in the Consolidated Balance Sheets were as follows (in millions): | |||||||||||||||||
December 31, | |||||||||||||||||
Classification in the Consolidated Balance Sheets | 2014 | 2013 | |||||||||||||||
Cash and cash equivalents | $ | 3,293 | $ | 3,266 | |||||||||||||
Marketable securities | 23,295 | 15,596 | |||||||||||||||
Other assets — noncurrent | 144 | 95 | |||||||||||||||
Restricted investments | — | 3,406 | |||||||||||||||
Total available-for-sale investments | $ | 26,732 | $ | 22,363 | |||||||||||||
Cash and cash equivalents in the table above excludes cash of $438 million and $539 million as of December 31, 2014 and 2013, respectively. In 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 Consolidated Balance Sheet. Restricted investments in the table above excludes interest receivable of $6 million as of December 31, 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): | |||||||||||||||||
December 31, | |||||||||||||||||
Contractual maturity | 2014 | 2013 | |||||||||||||||
Maturing in one year or less | $ | 4,936 | $ | 6,799 | |||||||||||||
Maturing after one year through three years | 6,829 | 4,785 | |||||||||||||||
Maturing after three years through five years | 7,840 | 6,057 | |||||||||||||||
Maturing after five years through ten years | 3,267 | 1,656 | |||||||||||||||
Maturing after ten years | 218 | — | |||||||||||||||
Mortgage- and asset-backed securities | 3,498 | 2,971 | |||||||||||||||
Total interest-bearing securities | $ | 26,588 | $ | 22,268 | |||||||||||||
For the years ended December 31, 2014, 2013 and 2012, realized gains totaled $149 million, $158 million and $186 million, respectively, and realized losses totaled $150 million, $83 million and $54 million, respectively. The cost of securities sold is based on the specific identification method. | |||||||||||||||||
The unrealized losses on available-for-sale investments and their related fair values were as follows (in millions): | |||||||||||||||||
Less than 12 months | 12 months or greater | ||||||||||||||||
Type of security as of December 31, 2014 | Fair value | Unrealized losses | Fair value | Unrealized losses | |||||||||||||
U.S. Treasury securities | $ | 1,770 | $ | (7 | ) | $ | 171 | $ | (1 | ) | |||||||
Other government-related debt securities: | |||||||||||||||||
U.S. | 160 | — | 178 | (3 | ) | ||||||||||||
Foreign and other | 514 | (14 | ) | 159 | (10 | ) | |||||||||||
Corporate debt securities: | |||||||||||||||||
Financial | 3,150 | (14 | ) | 158 | (2 | ) | |||||||||||
Industrial | 3,931 | (62 | ) | 222 | (4 | ) | |||||||||||
Other | 354 | (4 | ) | 5 | — | ||||||||||||
Residential mortgage-backed securities | 614 | (4 | ) | 413 | (6 | ) | |||||||||||
Other mortgage- and asset-backed securities | 1,071 | (8 | ) | 561 | (33 | ) | |||||||||||
Equity securities | 78 | (2 | ) | — | — | ||||||||||||
Total | $ | 11,642 | $ | (115 | ) | $ | 1,867 | $ | (59 | ) | |||||||
Less than 12 months | 12 months or greater | ||||||||||||||||
Type of security as of December 31, 2013 | Fair value | Unrealized losses | Fair value | Unrealized losses | |||||||||||||
U.S. Treasury securities | $ | 2,362 | $ | (9 | ) | $ | — | $ | — | ||||||||
Other government-related debt securities: | |||||||||||||||||
U.S. | 789 | (8 | ) | — | — | ||||||||||||
Foreign and other | 986 | (38 | ) | 39 | (3 | ) | |||||||||||
Corporate debt securities: | |||||||||||||||||
Financial | 1,781 | (19 | ) | — | — | ||||||||||||
Industrial | 1,543 | (21 | ) | 1 | — | ||||||||||||
Other | 182 | (2 | ) | — | — | ||||||||||||
Residential mortgage-backed securities | 794 | (14 | ) | 257 | (7 | ) | |||||||||||
Other mortgage- and asset-backed securities | 982 | (29 | ) | 313 | (16 | ) | |||||||||||
Total | $ | 9,419 | $ | (140 | ) | $ | 610 | $ | (26 | ) | |||||||
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, and the intent to sell, or whether we will more likely than not be required to sell, the security before recovery of its amortized cost basis. Our assessment of whether a security is other-than-temporarily impaired could change in the future due to new developments or changes in assumptions related to any particular security. As of December 31, 2014 and 2013, we believe the costs basis for our available-for-sale investments were recoverable in all material aspects. |
Inventories
Inventories | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories | Inventories | |||||||
Inventories consisted of the following (in millions): | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Raw materials | $ | 198 | $ | 217 | ||||
Work in process | 1,551 | 2,064 | ||||||
Finished goods | 898 | 738 | ||||||
Total inventories | $ | 2,647 | $ | 3,019 | ||||
Property_plant_and_equipment
Property, plant and equipment | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||
Property, plant and equipment | Property, plant and equipment | ||||||||||
Property, plant and equipment consisted of the following (dollar amounts in millions): | |||||||||||
December 31, | |||||||||||
Useful life (in years) | 2014 | 2013 | |||||||||
Land | — | $ | 398 | $ | 408 | ||||||
Buildings and improvements | Oct-40 | 3,612 | 3,467 | ||||||||
Manufacturing equipment | 12-Aug | 1,711 | 2,024 | ||||||||
Laboratory equipment | 12-Aug | 1,240 | 1,165 | ||||||||
Other | 15-Mar | 4,112 | 4,107 | ||||||||
Construction in progress | — | 1,183 | 1,120 | ||||||||
Property, plant and equipment, gross | 12,256 | 12,291 | |||||||||
Less accumulated depreciation and amortization | (7,033 | ) | (6,942 | ) | |||||||
Property, plant and equipment, net | $ | 5,223 | $ | 5,349 | |||||||
During the years ended December 31, 2014, 2013 and 2012, we recognized depreciation and amortization charges associated with our property, plant and equipment of $716 million, $644 million and $689 million, respectively. |
Goodwill_and_intangible_assets
Goodwill and intangible assets | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||
Goodwill and other intangible assets | Goodwill and other intangible assets | |||||||||||||||||||||||
Goodwill | ||||||||||||||||||||||||
The changes in the carrying amounts of goodwill were as follows (in millions): | ||||||||||||||||||||||||
During the years ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Beginning balance | $ | 14,968 | $ | 12,662 | ||||||||||||||||||||
Goodwill related to acquisitions of businesses (1) | (114 | ) | 2,397 | |||||||||||||||||||||
Currency translation and other adjustments | (66 | ) | (91 | ) | ||||||||||||||||||||
Ending balance | $ | 14,788 | $ | 14,968 | ||||||||||||||||||||
(1) | Composed of goodwill recognized on the acquisition dates of business combinations and subsequent adjustments to these amounts resulting from changes to the acquisition date fair values of net assets acquired in the business combinations recorded during their respective measurement periods. | |||||||||||||||||||||||
Identifiable intangible assets | ||||||||||||||||||||||||
Identifiable intangible assets consisted of the following (in millions): | ||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Gross | Accumulated | Intangible | Gross | Accumulated | Intangible | |||||||||||||||||||
carrying | amortization | assets, net | carrying | amortization | assets, net | |||||||||||||||||||
amount | amount | |||||||||||||||||||||||
Finite-lived intangible assets: | ||||||||||||||||||||||||
Developed product technology rights | $ | 10,826 | $ | (4,155 | ) | $ | 6,671 | $ | 10,130 | $ | (3,347 | ) | $ | 6,783 | ||||||||||
Licensing rights | 3,236 | (696 | ) | 2,540 | 3,241 | (366 | ) | 2,875 | ||||||||||||||||
R&D technology rights | 1,167 | (569 | ) | 598 | 1,207 | (496 | ) | 711 | ||||||||||||||||
Marketing-related rights | 1,241 | (512 | ) | 729 | 619 | (366 | ) | 253 | ||||||||||||||||
Total finite-lived intangible assets | 16,470 | (5,932 | ) | 10,538 | 15,197 | (4,575 | ) | 10,622 | ||||||||||||||||
Indefinite-lived intangible assets: | ||||||||||||||||||||||||
IPR&D | 2,155 | — | 2,155 | 2,640 | — | 2,640 | ||||||||||||||||||
Total identifiable intangible assets | $ | 18,625 | $ | (5,932 | ) | $ | 12,693 | $ | 17,837 | $ | (4,575 | ) | $ | 13,262 | ||||||||||
Developed product technology rights consist of rights related to marketed products acquired in business combinations. Licensing rights are composed primarily of intangible assets acquired as part of the acquisition of Onyx (see Note 3, Business combinations), capitalized payments to third parties for milestones related to regulatory approvals to commercialize products and upfront payments associated with royalty obligations for marketed products. R&D technology rights consist of technology used in R&D with alternative future uses. Marketing-related intangible assets are composed primarily of rights related to the sale and distribution of marketed products, including licenses to filgrastim and pegfilgrastim acquired from Roche (see Note 3, Business combinations). Marketing-related intangible assets also includes $275 million paid to Glaxo during the year ended December 31, 2014, for the early termination of our agreement with them to commercialize denosumab in certain geographic areas (see Note 7, Collaborative arrangements). This transaction represents the reacquisition of a previously shared economic interest in geographic territories where we were already marketing denosumab and accordingly was accounted for as an acquisition of identifiable intangible assets. | ||||||||||||||||||||||||
IPR&D consists of R&D projects acquired in a business combination which are not complete due to remaining technological risks and/or lack of receipt of the required regulatory approvals. These projects include Kyprolis®, a treatment for multiple myeloma being developed for use outside the U.S. (excluding Japan) acquired in the Onyx transaction (see Note 3, Business combinations); AMG 416, a treatment for secondary hyperparathyroidism in patients with CKD who are on dialysis, and talimogene laherparepvec, a treatment for metastatic melanoma. In December 2014, we announced that the FDA has granted approval of BLINCYTO™ (blinatumomab) for the treatment of patients with Ph- relapsed or refractory B-cell precursor ALL. As a result, the $408 million carrying value of BLINCYTO™, which we acquired in the acquisition of Micromet (see Note 3, Business combinations), was reclassified from IPR&D to Developed product technology rights during the fourth quarter of 2014, and is being amortized over its estimated useful life. In addition, during the year ended December 31, 2014, we recorded an impairment charge of $46 million for an IPR&D outlicensing program acquired in the acquisition of Micromet (see Note 3, Business combinations). | ||||||||||||||||||||||||
For all IPR&D projects, there are major risks and uncertainties associated with the timely and successful completion of development and commercialization of these product candidates, including our ability to confirm their safety and efficacy based on data from clinical trials, our ability to obtain necessary regulatory approvals and our ability to successfully complete these tasks within budgeted costs. We are not able to market a human therapeutic without obtaining regulatory approvals, and such approvals require completing clinical trials that demonstrate a product candidate is safe and effective. In addition, the availability and extent of coverage and reimbursement from third-party payers, including government healthcare programs and private insurance plans, impact the revenues a product can generate. Consequently, the eventual realized value, if any, of these acquired IPR&D projects may vary from their estimated fair values. | ||||||||||||||||||||||||
During the years ended December 31, 2014, 2013 and 2012, we recognized amortization charges associated with our finite-lived intangible assets, included primarily in Cost of sales in the Consolidated Statements of Income, of $1,376 million, $642 million and $397 million, respectively. The total estimated amortization for each of the next five years for our intangible assets is $1.4 billion, $1.3 billion, $1.2 billion, $1.0 billion and $957 million in 2015, 2016, 2017, 2018 and 2019, respectively. |
Accrued_liabilities
Accrued liabilities | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Accrued liabilities | Accrued liabilities | |||||||
Accrued liabilities consisted of the following (in millions): | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Sales deductions | $ | 1,379 | $ | 1,248 | ||||
Employee compensation and benefits | 920 | 1,003 | ||||||
Clinical development costs | 445 | 522 | ||||||
Dividends payable | 601 | 460 | ||||||
Sales returns reserve | 361 | 295 | ||||||
Other | 1,590 | 1,127 | ||||||
Total accrued liabilities | $ | 5,296 | $ | 4,655 | ||||
Financing_arrangements
Financing arrangements | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
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): | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
1.875% notes due 2014 (1.875% 2014 Notes) | $ | — | $ | 1,000 | ||||
4.85% notes due 2014 (4.85% 2014 Notes) | — | 1,000 | ||||||
2.30% notes due 2016 (2.30% 2016 Notes) | 749 | 749 | ||||||
2.50% notes due 2016 (2.50% 2016 Notes) | 1,000 | 999 | ||||||
Floating Rate Notes due 2017 | 600 | — | ||||||
1.25% notes due 2017 (1.25% 2017 Notes) | 849 | — | ||||||
2.125% notes due 2017 (2.125% 2017 Notes) | 1,249 | 1,248 | ||||||
5.85% notes due 2017 (5.85% 2017 Notes) | 1,100 | 1,099 | ||||||
6.15% notes due 2018 (6.15% 2018 Notes) | 500 | 500 | ||||||
Master Repurchase Agreement obligation due 2018 | — | 3,100 | ||||||
Term Loan due 2018 | 4,375 | 4,875 | ||||||
4.375% euro-denominated notes due 2018 (4.375% 2018 euro Notes) | 668 | 751 | ||||||
Floating Rate Notes due 2019 | 250 | — | ||||||
2.20% notes due 2019 (2.20% 2019 Notes) | 1,398 | — | ||||||
5.70% notes due 2019 (5.70% 2019 Notes) | 999 | 999 | ||||||
2.125% euro-denominated notes due 2019 (2.125% 2019 euro Notes) | 814 | 925 | ||||||
4.50% notes due 2020 (4.50% 2020 Notes) | 300 | 300 | ||||||
3.45% notes due 2020 (3.45% 2020 Notes) | 898 | 898 | ||||||
4.10% notes due 2021 (4.10% 2021 Notes) | 998 | 998 | ||||||
3.875% notes due 2021 (3.875% 2021 Notes) | 1,747 | 1,746 | ||||||
3.625% notes due 2022 (3.625% 2022 Notes) | 747 | 747 | ||||||
3.625% notes due 2024 (3.625% 2024 Notes) | 1,398 | — | ||||||
5.50% pound-sterling-denominated notes due 2026 (5.50% 2026 pound sterling Notes) | 735 | 781 | ||||||
4.00% pound-sterling-denominated notes due 2029 (4.00% 2029 pound sterling Notes) | 1,076 | 1,144 | ||||||
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 | 596 | ||||||
5.15% notes due 2041 (5.15% 2041 Notes) | 2,233 | 2,233 | ||||||
5.65% notes due 2042 (5.65% 2042 Notes) | 1,245 | 1,244 | ||||||
5.375% notes due 2043 (5.375% 2043 Notes) | 1,000 | 1,000 | ||||||
Other notes | 100 | 105 | ||||||
Total debt | 30,715 | 32,128 | ||||||
Less current portion | (500 | ) | (2,505 | ) | ||||
Total noncurrent debt | $ | 30,215 | $ | 29,623 | ||||
Debt repayments | ||||||||
During the year ended December 31, 2014, we repaid $5.6 billion of debt, including the Master Repurchase Agreement, the 1.875% 2014 Notes, the 4.85% 2014 Notes, $500 million of principal on our Term Loan Credit Facility and $5 million of Other notes. During the year ended December 31, 2013, our 0.375% 2013 Convertible Notes matured/converted, and the $2.5 billion principal amount was settled in cash. We also repaid $742 million of convertible debt assumed in the acquisition of Onyx, $125 million of principal on our Term Loan Credit Facility and $4 million of Other notes. During the year ended December 31, 2012, we repaid $123 million of Other notes. | ||||||||
Debt issuances | ||||||||
We issued debt and debt securities in various offerings during the three years ended December 31, 2014, including: | ||||||||
• | In 2014, we issued $4.5 billion aggregate principal amount of notes, comprised of the Floating Rate Notes due 2017, the 1.25% 2017 Notes, the Floating Rate Notes due 2019, the 2.20% 2019 Notes and the 3.625% 2024 Notes. The Floating Rate Notes due in 2017 and 2019 bear interest equal to three-month London Interbank Offered Rates (LIBOR) plus 0.38% and three-month LIBOR plus 0.60%, respectively, and are not subject to redemption at our option. The fixed rate notes that were issued may be redeemed at any time at our option, in whole or in part, at the principal amount of the notes being redeemed plus accrued and unpaid interest and, except as discussed below, a make-whole amount, as defined. The 2.20% 2019 Notes and 3.625% 2024 Notes may be redeemed without payment of a make-whole amount if they are redeemed on or after one month or three months, respectively, prior to their maturity dates. In the event of a change-in-control triggering event, as defined, we may be required to purchase all or a portion of the notes at a price equal to 101% of the principal amount of the notes plus accrued and unpaid interest. | |||||||
• | In 2013, we issued $8.1 billion of debt in connection with the acquisition of Onyx, comprised of obligations under a Master Repurchase Agreement and a Term Loan. | |||||||
• | In 2012, we issued $5.0 billion aggregate principal amount of notes, comprised of the 2.125% 2017 Notes, the 2.125% 2019 euro Notes (€675 million aggregate principal amount), the 3.625% 2022 Notes, the 4.00% 2029 pound sterling Notes (£700 million aggregate principal amount) and the 5.375% 2043 Notes. | |||||||
Debt issuance costs incurred in connection with these debt issuances in 2014, 2013 and 2012 totaled $18 million, $46 million and $25 million, respectively. These debt issuance costs are being amortized over the respective lives of the debt, and the related charge is included in Interest expense, net, in the Consolidated Statements of Income. | ||||||||
All of our notes, other than our Floating Rate Notes and Other notes, may be redeemed at any time at our option, in whole or in part, at the principal amount of the notes being redeemed plus accrued interest and, except for specified time periods described above regarding the 2.20% 2019 Notes and 3.625% 2024 Notes, a make-whole amount, as defined. In addition, except with respect to our Other notes, in the event of a change-in-control triggering event, as defined, we may be required to purchase for cash all or a portion of these notes at a price equal to 101% of the principal amount of the notes plus accrued interest. | ||||||||
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, on September 30, 2013. Pursuant to the Repurchase Agreement, we were obligated to repurchase the Class A preferred shares from the counterparties for the aggregate sale price of $3.1 billion, plus any accrued and unpaid payment obligations, no later than September 28, 2018. On May 22, 2014, we repurchased the shares for the aggregate sale price. While outstanding, we were obligated to make payments to the counterparties based on the sale price of the preferred shares at a floating interest rate based on the LIBOR plus 1.1%. The obligation to repurchase the preferred shares was accounted for as Long-term debt on our Consolidated Balance Sheet. | ||||||||
Term Loan | ||||||||
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 total of $125 million of the principal amount of the loan is to be repaid at the end of each quarter, 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 2006, we issued $2.5 billion principal amount of 0.375% 2013 Convertible Notes at par. The conversion value was payable in: (i) cash equal to the lesser of the principal amount of the note or the conversion value, as defined, and (ii) cash, shares of our common stock, or a combination of cash and shares of our common stock, at our option, to the extent the conversion value exceeded the principal amount of the note (the excess conversion value). 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 excess conversion value, as allowed by the original terms of the notes. | ||||||||
Concurrent with the issuance of the 0.375% 2013 Convertible Notes, we purchased a convertible note hedge. The convertible note hedge allowed us to receive shares of our common stock and/or cash from the counterparty to the transaction equal to the amounts of common stock and/or cash related to the excess conversion value that we would issue and/or pay to the holders of the 0.375% 2013 Convertible Notes upon conversion. As a result of the conversion of the 0.375% 2013 Convertible Notes, we received $99 million of cash from the counterparty to offset the corresponding amount paid to the note holders. | ||||||||
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. | ||||||||
Because the convertible note hedges and warrants could have been settled at our option in cash or shares of our common stock, and these contracts met all of the applicable criteria for equity classification under the applicable accounting standards, the cost of the convertible note hedges, the net proceeds from the sale of the warrants and the settlement of these contracts were classified in Stockholders’ equity in the Consolidated Balance Sheets. In addition, because both of these contracts are classified in Stockholders’ equity and were indexed to our common stock, they were not accounted for as derivatives. | ||||||||
Because these convertible notes were cash settleable, their debt and equity components were bifurcated and accounted for separately. The discounted carrying value of the debt component resulting from the bifurcation was accreted back to the principal amount over the period the notes were outstanding, resulting in the recognition of non-cash interest expense. The total aggregate amount repaid, including the amount related to the debt discount, is included in Cash flows from financing activities in the Consolidated Statement of Cash Flows. After giving effect to this bifurcation, the effective interest rate on the 0.375% 2013 Convertible Notes was 6.35%. For the years ended December 31, 2013 and 2012, total interest expenses for the 0.375% 2013 Convertibles Notes were $13 million and $151 million, respectively, including non-cash interest expenses of $12 million and $142 million, respectively. The carrying amount of the equity component of this debt remains at $829 million. | ||||||||
Other notes | ||||||||
Other notes include our notes due in 2097 with a carrying value of $100 million and debt assumed in the acquisition of MN which totaled $5 million at December 31, 2013. | ||||||||
Interest rate swaps | ||||||||
To achieve a desired mix of fixed and floating interest rate debt, we entered into interest rate swap contracts that effectively converted a fixed-rate interest coupon for certain of our debt issuances to a floating LIBOR-based coupon over the life of the respective note. These interest rate swap contracts qualified and are designated as fair value hedges. As of December 31, 2014, we had $6.65 billion notional amount of interest rate swap contracts outstanding, including $2.25 billion and $4.4 billion notional amounts of contracts which were entered into during the years ended December 31, 2014 and 2013, respectively. The effective interest rates on these notes after giving effect to the related interest rate swap contracts and the related notional amounts of the contracts were as follows as of December 31, 2014 (dollar amounts in millions): | ||||||||
Originating during year ended December 31, 2014 | ||||||||
Notes | Effective interest rate | Notional amount | ||||||
1.25% 2017 Notes | LIBOR + 0.4% | $ | 850 | |||||
2.20% 2019 Notes | LIBOR + 0.6% | 1,400 | ||||||
$ | 2,250 | |||||||
Originating during year ended December 31, 2013 | ||||||||
Notes | Effective interest rate | Notional amount | ||||||
3.45% 2020 Notes | LIBOR + 1.1% | $ | 900 | |||||
4.10% 2021 Notes | LIBOR + 1.7% | 1,000 | ||||||
3.875% 2021 Notes | LIBOR + 2.0% | 1,750 | ||||||
3.625% 2022 Notes | LIBOR + 1.6% | 750 | ||||||
$ | 4,400 | |||||||
We previously had interest rate swap contracts with an aggregate notional amount of $3.6 billion outstanding with rates that ranged from LIBOR plus 0.3% to LIBOR plus 2.6%. Due to historically low interest rates, we terminated all of these swap contracts in May 2012. See Note 17, Derivative instruments. | ||||||||
Cross-currency swaps | ||||||||
In order to hedge our exposure to foreign currency exchange rate risk associated with certain of our long-term notes denominated in foreign currencies, we entered into cross-currency swap contracts. The terms of these contracts effectively convert the interest payments and principal repayment on our 2.125% 2019 euro Notes, 5.50% 2026 pound sterling Notes and 4.00% 2029 pound sterling Notes from euros/pounds sterling to U.S. dollars. These cross-currency swap contracts have been designated as cash flow hedges. For information regarding the terms of these contracts, see Note 17, Derivative instruments. | ||||||||
Shelf registration statements and other facilities | ||||||||
As of December 31, 2014, we have a commercial paper program that allows us to issue up to $2.5 billion of unsecured commercial paper to fund our working capital needs. At December 31, 2014 and 2013, we had no amounts outstanding under our commercial paper program. | ||||||||
In July 2014, we entered into a $2.5 billion syndicated, unsecured, revolving credit agreement which is available for general corporate purposes or as a liquidity backstop to our commercial paper program. This agreement amended and restated our previous revolving credit agreement on substantially similar terms. The commitments under the revolving credit agreement may be increased by up to $500 million with the agreement of the banks. Each bank which is a party to the agreement has an initial commitment term of five years. This term may be extended for up to two additional one-year periods with the agreement of the banks. Annual commitment fees for this agreement are 0.1% based on our current credit rating. Generally, we would be charged interest at LIBOR plus 0.9% for any amounts borrowed under this facility. As of December 31, 2014 and 2013, no amounts were outstanding under this facility. | ||||||||
In February 2014, we filed a shelf registration statement with the SEC that allows us to issue unspecified amounts of debt securities; common stock; preferred stock; warrants to purchase debt securities, common stock, preferred stock or depository shares; rights to purchase common stock or preferred stock; securities purchase contracts; securities purchase units; and depository shares. Under this shelf registration statement, all of the securities available for issuance may be offered from time to time with terms to be determined at the time of issuance. This shelf registration statement expires in February 2017. | ||||||||
In 1997, we established a $400 million medium-term note program under which medium-term debt securities may be offered from time to time with terms to be determined at the time of issuance. As of December 31, 2014 and 2013, no securities were outstanding under this medium-term note program. | ||||||||
Certain of our financing arrangements contain non-financial covenants. In addition, our revolving credit agreement and Term Loan Credit Facility each include a financial covenant with respect to the level of our borrowings in relation to our equity, as defined. We were in compliance with all applicable covenants under these arrangements as of December 31, 2014. | ||||||||
Contractual maturities of long-term debt obligations | ||||||||
The aggregate contractual maturities of all long-term debt obligations due subsequent to December 31, 2014, are as follows (in millions): | ||||||||
Maturity date | Amount | |||||||
2015 | $ | 500 | ||||||
2016 | 2,250 | |||||||
2017 | 4,300 | |||||||
2018 | 4,045 | |||||||
2019 | 3,467 | |||||||
Thereafter | 16,230 | |||||||
Total | $ | 30,792 | ||||||
Interest costs | ||||||||
Interest costs are expensed as incurred, except to the extent such interest is related to construction in progress, in which case interest is capitalized. Interest expense, net, for the years ended December 31, 2014, 2013 and 2012, was $1.1 billion, $1.0 billion and $1.1 billion, respectively. Interest costs capitalized for the years ended December 31, 2014, 2013 and 2012, were $18 million, $18 million and $26 million, respectively. Interest paid, including the ongoing impact and settlements of interest rate and cross currency swaps, during the years ended December 31, 2014, 2013 and 2012, totaled $1.1 billion, $1.1 billion and $0.5 billion, respectively. |
Stockholders_equity
Stockholders' equity | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||
Stockholders' equity | Stockholders’ equity | ||||||||||||||||||||
Stock repurchase program | |||||||||||||||||||||
Activity under our stock repurchase program was as follows (in millions): | |||||||||||||||||||||
During the years ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Shares | Dollars | Shares | Dollars | Shares | Dollars | ||||||||||||||||
First quarter | — | $ | — | 9.1 | $ | 771 | 21 | $ | 1,429 | ||||||||||||
Second quarter | — | — | — | — | 17.4 | 1,203 | |||||||||||||||
Third quarter | — | — | — | — | 9.7 | 797 | |||||||||||||||
Fourth quarter | 0.9 | 153 | — | — | 14.2 | 1,233 | |||||||||||||||
Total stock repurchases | 0.9 | $ | 153 | 9.1 | $ | 771 | 62.3 | $ | 4,662 | ||||||||||||
In October 2014, our Board of Directors approved an increase in the stock repurchase authorization that resulted in $4.0 billion available under our stock repurchase program. As of December 31, 2014, $3.8 billion remained available under our stock repurchase program. | |||||||||||||||||||||
Dividends | |||||||||||||||||||||
On each of December 15, 2011, and March 15, July 19 and October 10, 2012, the Board of Directors declared quarterly cash dividends of $0.36 per share of common stock, which were paid on March 7, June 7, September 7 and December 7, 2012, respectively. On each of December 13, 2012, March 6, July 26, and October 16, 2013, the Board of Directors declared quarterly cash dividends of $0.47 per share of common stock, which were paid on March 7, June 7, September 6, and December 6, 2013, respectively. On each of December 13, 2013, March 5, July 25 and October 17, 2014, the Board of Directors declared quarterly cash dividends of $0.61 per share of common stock, which were paid on March 7, June 6, September 5, and December 5, 2014, respectively. | |||||||||||||||||||||
Additionally, on December 17, 2014, the Board of Directors declared a quarterly cash dividend of $0.79 per share of common stock, which will be paid on March 6, 2015, to all stockholders of record as of the close of business on February 12, 2015. | |||||||||||||||||||||
Accumulated other comprehensive income | |||||||||||||||||||||
The components of accumulated other comprehensive income (AOCI) were as follows (in millions): | |||||||||||||||||||||
Foreign | Cash flow | Available-for-sale | Other | AOCI | |||||||||||||||||
currency | hedges | securities | |||||||||||||||||||
translation | |||||||||||||||||||||
Balance as of December 31, 2011 | $ | 21 | $ | 43 | $ | 120 | $ | (13 | ) | $ | 171 | ||||||||||
Foreign currency translation adjustments | (13 | ) | — | — | — | (13 | ) | ||||||||||||||
Unrealized gains (losses) | — | 15 | 233 | (1 | ) | 247 | |||||||||||||||
Reclassification adjustments to income | — | (134 | ) | (132 | ) | — | (266 | ) | |||||||||||||
Income taxes | 4 | 41 | (38 | ) | — | 7 | |||||||||||||||
Balance as of December 31, 2012 | 12 | (35 | ) | 183 | (14 | ) | 146 | ||||||||||||||
Foreign currency translation adjustments | (71 | ) | — | — | — | (71 | ) | ||||||||||||||
Unrealized gains (losses) | — | 88 | (284 | ) | (1 | ) | (197 | ) | |||||||||||||
Reclassification adjustments to income | — | (85 | ) | (75 | ) | — | (160 | ) | |||||||||||||
Other | — | — | — | (2 | ) | (2 | ) | ||||||||||||||
Income taxes | (9 | ) | (1 | ) | 133 | — | 123 | ||||||||||||||
Balance as of December 31, 2013 | (68 | ) | (33 | ) | (43 | ) | (17 | ) | (161 | ) | |||||||||||
Foreign currency translation adjustments | (218 | ) | — | — | — | (218 | ) | ||||||||||||||
Unrealized gains | — | 298 | 37 | 1 | 336 | ||||||||||||||||
Reclassification adjustments to income | — | 203 | 1 | — | 204 | ||||||||||||||||
Other | — | — | — | 1 | 1 | ||||||||||||||||
Income taxes | 22 | (178 | ) | (14 | ) | — | (170 | ) | |||||||||||||
Balance as of December 31, 2014 | $ | (264 | ) | $ | 290 | $ | (19 | ) | $ | (15 | ) | $ | (8 | ) | |||||||
Income tax expenses/benefits for unrealized gains and losses and the related reclassification adjustments to income for cash flow hedges were a $104 million expense and $74 million expense in 2014, a $34 million expense and $33 million benefit in 2013 and a $8 million expense and $49 million benefit in 2012, respectively. Income tax expenses/benefits for unrealized gains and losses and the related reclassification adjustments to income for available-for-sale securities were a $14 million expense and $0 million for 2014, a $105 million benefit and $28 million benefit in 2013 and a $87 million expense and $49 million benefit in 2012, respectively. | |||||||||||||||||||||
The reclassifications out of AOCI to earnings were as follows (in millions): | |||||||||||||||||||||
Amounts reclassified out of AOCI | |||||||||||||||||||||
Components of AOCI | Year ended December 31, 2014 | Year ended December 31, 2013 | Line item affected in the Statements of Income | ||||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||
Foreign currency contract gains | $ | 28 | $ | 4 | Product sales | ||||||||||||||||
Cross-currency swap contract (losses) gains | (230 | ) | 82 | Interest and other income, net | |||||||||||||||||
Forward interest rate contract losses | (1 | ) | (1 | ) | Interest expense, net | ||||||||||||||||
(203 | ) | 85 | Total before income tax | ||||||||||||||||||
74 | (33 | ) | Tax benefit (expense) | ||||||||||||||||||
$ | (129 | ) | $ | 52 | Net of taxes | ||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||
Net realized (losses) gains | $ | (1 | ) | $ | 75 | Interest and other income, net | |||||||||||||||
— | (28 | ) | Tax expense | ||||||||||||||||||
$ | (1 | ) | $ | 47 | Net of taxes | ||||||||||||||||
Other | |||||||||||||||||||||
In addition to common stock, our authorized capital includes 5 million shares of preferred stock, $0.0001 par value. As of December 31, 2014 and 2013, no shares of preferred stock were issued or outstanding. |
Fair_value_measurement
Fair value measurement | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
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): | |||||||||||||||||
Fair value measurement as of December 31, 2014, using: | Quoted prices in | Significant other | Significant | Total | |||||||||||||
active markets for | observable | unobservable | |||||||||||||||
identical assets | inputs | inputs | |||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
Assets: | |||||||||||||||||
Available-for-sale investments: | |||||||||||||||||
U.S. Treasury securities | $ | 3,646 | $ | — | $ | — | $ | 3,646 | |||||||||
Other government-related debt securities: | |||||||||||||||||
U.S. | — | 528 | — | 528 | |||||||||||||
Foreign and other | — | 1,569 | — | 1,569 | |||||||||||||
Corporate debt securities: | |||||||||||||||||
Financial | — | 6,041 | — | 6,041 | |||||||||||||
Industrial | — | 6,351 | — | 6,351 | |||||||||||||
Other | — | 649 | — | 649 | |||||||||||||
Residential mortgage-backed securities | — | 1,702 | — | 1,702 | |||||||||||||
Other mortgage- and asset-backed securities | — | 1,796 | — | 1,796 | |||||||||||||
Money market mutual funds | 3,004 | — | — | 3,004 | |||||||||||||
Other short-term interest bearing securities | — | 1,302 | — | 1,302 | |||||||||||||
Equity securities | 144 | — | — | 144 | |||||||||||||
Derivatives: | |||||||||||||||||
Foreign currency contracts | — | 360 | — | 360 | |||||||||||||
Cross-currency swap contracts | — | 32 | — | 32 | |||||||||||||
Interest rate swap contracts | — | 46 | — | 46 | |||||||||||||
Total assets | $ | 6,794 | $ | 20,376 | $ | — | $ | 27,170 | |||||||||
Liabilities: | |||||||||||||||||
Derivatives: | |||||||||||||||||
Foreign currency contracts | $ | — | $ | 4 | $ | — | $ | 4 | |||||||||
Cross-currency swap contracts | — | 12 | — | 12 | |||||||||||||
Interest rate swap contracts | — | 26 | — | 26 | |||||||||||||
Contingent consideration obligations in connection with a business combination | — | — | 215 | 215 | |||||||||||||
Total liabilities | $ | — | $ | 42 | $ | 215 | $ | 257 | |||||||||
Fair value measurement as of December 31, 2013, using: | Quoted prices in | Significant other | Significant | Total | |||||||||||||
active markets for | observable | unobservable | |||||||||||||||
identical assets | inputs | inputs | |||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
Assets: | |||||||||||||||||
Available-for-sale investments: | |||||||||||||||||
U.S. Treasury securities | $ | 4,730 | $ | — | $ | — | $ | 4,730 | |||||||||
Other government-related debt securities: | |||||||||||||||||
U.S. | — | 1,079 | — | 1,079 | |||||||||||||
Foreign and other | — | 1,546 | — | 1,546 | |||||||||||||
Corporate debt securities: | |||||||||||||||||
Financial | — | 3,676 | — | 3,676 | |||||||||||||
Industrial | — | 3,760 | — | 3,760 | |||||||||||||
Other | — | 390 | — | 390 | |||||||||||||
Residential mortgage-backed securities | — | 1,460 | — | 1,460 | |||||||||||||
Other mortgage- and asset-backed securities | — | 1,511 | — | 1,511 | |||||||||||||
Money market mutual funds | 3,366 | — | — | 3,366 | |||||||||||||
Other short-term interest-bearing securities | — | 750 | — | 750 | |||||||||||||
Equity securities | 95 | — | — | 95 | |||||||||||||
Derivatives: | |||||||||||||||||
Foreign currency contracts | — | 53 | — | 53 | |||||||||||||
Cross-currency swap contracts | — | 193 | — | 193 | |||||||||||||
Total assets | $ | 8,191 | $ | 14,418 | $ | — | $ | 22,609 | |||||||||
Liabilities: | |||||||||||||||||
Derivatives: | |||||||||||||||||
Foreign currency contracts | $ | — | $ | 107 | $ | — | $ | 107 | |||||||||
Cross-currency swap contracts | — | 4 | — | 4 | |||||||||||||
Interest rate swap contracts | — | 161 | — | 161 | |||||||||||||
Contingent consideration obligations in connection with business combinations | — | — | 595 | 595 | |||||||||||||
Total liabilities | $ | — | $ | 272 | $ | 595 | $ | 867 | |||||||||
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 or equivalent by S&P, Moody's or Fitch, Inc. (Fitch); and our corporate debt securities portfolio has a weighted-average credit rating of BBB+ or equivalent by S&P or Moody's and A- by 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 17, 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 17, 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. | |||||||||||||||||
Contingent consideration obligations | |||||||||||||||||
We have incurred contingent consideration obligations as a result of our acquisition of a business and upon the assumption of contingent consideration obligations incurred by an acquired company discussed below. These contingent consideration obligations are recorded at their estimated fair values, and we revalue these obligations each reporting period until the related contingencies are resolved. The fair value measurements of these obligations are based on significant unobservable inputs related to product candidates acquired in the business combinations and are reviewed quarterly by management in our R&D and commercial sales organizations. These inputs include, as applicable, estimated probabilities and timing of achieving specified regulatory and commercial milestones and estimated annual sales. Significant changes which increase or decrease the probabilities of achieving the related regulatory and commercial events, shorten or lengthen the time required to achieve such events, or increase or decrease estimated annual sales would result in corresponding increases or decreases in the fair values of these obligations, as applicable. Changes in fair values of contingent consideration obligations are recognized in Other operating expenses in the Consolidated Statements of Income. | |||||||||||||||||
The changes in carrying amounts of contingent consideration obligations were as follows (in millions): | |||||||||||||||||
During the years ended December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Beginning balance | $ | 595 | $ | 221 | |||||||||||||
Additions from Onyx acquisition | — | 261 | |||||||||||||||
Net changes in valuation | (30 | ) | 113 | ||||||||||||||
Agreement with former Proteolix, Inc. shareholders | (225 | ) | — | ||||||||||||||
Payment to former BioVex Group, Inc. shareholders | (125 | ) | — | ||||||||||||||
Ending balance | $ | 215 | $ | 595 | |||||||||||||
As a result of our acquisition of BioVex Group, Inc. (BioVex) in March 2011, we were obligated to pay its former shareholders up to $575 million of additional consideration contingent upon achieving separate regulatory and sales-related milestones with regard to talimogene laherparepvec, which was acquired in the acquisition. In July 2014, we submitted a Biologics License Application in the United States for regionally and distantly metastatic melanoma. In September 2014, we submitted a MAA to the EMA for the treatment of adults with regionally and distantly metastatic melanoma. As a result of the U.S. filing, we made a milestone payment of $125 million to the former BioVex shareholders during the fourth quarter of 2014. The remaining potential milestone payments include: (i) $125 million upon the first commercial sale in the United States following receipt of marketing approval for use of the product in specified patient populations, (ii) $125 million upon achievement of an agreed level of worldwide sales within a specified period of time and (iii) up to $200 million of additional consideration of varying amounts upon achievement of certain other regulatory and sales-related milestones. | |||||||||||||||||
We estimate the fair values of the obligations to the former shareholders of BioVex by using a combination of probability-adjusted discounted cash flows, option pricing techniques and a simulation model of expected annual sales. As a result of our quarterly review of the key assumptions during the years ended December 31, 2014 and 2013, the estimated aggregate fair value of the contingent consideration obligations increased by $6 million and $113 million in the years ended December 31, 2014 and 2013, respectively. | |||||||||||||||||
We assumed contingent consideration obligations upon the acquisition of Onyx arising from Onyx's 2009 acquisition of Proteolix, Inc. These contingent consideration obligations were comprised of two separate milestone payments of $150 million each payable if Kyprolis® received specified marketing approvals for relapsed multiple myeloma on or before March 31, 2016, by each of the FDA and the EMA. See Note 3, Business combinations. In December 2014, we renegotiated the terms of these milestones and settled the contingent consideration obligations with the former shareholders of Proteolix, Inc. by agreeing to make a single payment of $225 million, which is currently expected to occur during the first quarter of 2015. Accordingly, this amount is shown as a deduction in the table above as there are no longer contingencies regarding the amounts of the obligations. We estimated the fair values of these contingent obligations each quarter by reviewing the key assumptions underlying the probability-adjusted discounted cash flows. During the year ended December 31, 2014, the fair value of these obligations decreased by $36 million. There was no significant change in the fair value of these contingent consideration obligations from the date of our acquisition of Onyx to December 31, 2013. | |||||||||||||||||
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 years ended December 31, 2014 and 2013, of assets and liabilities that are not measured at fair value on a recurring basis, except as discussed in Note 3, Business combinations, regarding the impairments of intangible assets, and Note 2, Restructuring and other cost savings initiatives. | |||||||||||||||||
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 value of our long-term debt (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 December 31, 2014 and 2013, the aggregate fair values of our long-term debt were $33.6 billion and $33.5 billion, respectively, and the carrying values were $30.7 billion and $32.1 billion, respectively. |
Derivative_instruments
Derivative instruments | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
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 December 31, 2014, 2013 and 2012, we had open foreign currency forward contracts with notional amounts of $3.8 billion, $4.0 billion and $3.7 billion, respectively, and open foreign currency option contracts with notional amounts of $271 million, $516 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 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 in the Consolidated Balance Sheets 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 | % | $ | 747 | 6 | % | |||||||
4.00% 2029 pound sterling Notes | £ | 700 | 4 | % | $ | 1,111 | 4.5 | % | |||||||
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 in the Consolidated Balance Sheets and amortized into earnings over the lives of the associated debt issuances. | |||||||||||||||
The effective portions of the unrealized gain/(loss) recognized in other comprehensive income for our derivative instruments designated as cash flow hedges were as follows (in millions): | |||||||||||||||
Years ended December 31, | |||||||||||||||
Derivatives in cash flow hedging relationships | 2014 | 2013 | 2012 | ||||||||||||
Foreign currency contracts | $ | 452 | $ | (44 | ) | $ | (63 | ) | |||||||
Cross-currency swap contracts | (154 | ) | 132 | 85 | |||||||||||
Forward interest rate contracts | — | — | (7 | ) | |||||||||||
Total | $ | 298 | $ | 88 | $ | 15 | |||||||||
The locations in the Consolidated Statements of Income and the effective portions of the gain/(loss) reclassified out of AOCI into earnings for our derivative instruments designated as cash flow hedges were as follows (in millions): | |||||||||||||||
Years ended December 31, | |||||||||||||||
Derivatives in cash flow hedging relationships | Statements of Income location | 2014 | 2013 | 2012 | |||||||||||
Foreign currency contracts | Product sales | $ | 28 | $ | 4 | $ | 74 | ||||||||
Cross-currency swap contracts | Interest and other income, net | (230 | ) | 82 | 61 | ||||||||||
Forward interest rate contracts | Interest expense, net | (1 | ) | (1 | ) | (1 | ) | ||||||||
Total | $ | (203 | ) | $ | 85 | $ | 134 | ||||||||
No portions of our cash flow hedge contracts are excluded from the assessment of hedge effectiveness, and the gains and losses of the ineffective portions of these hedging instruments were not material for the years ended December 31, 2014, 2013 and 2012. As of December 31, 2014, the amounts expected to be reclassified out of AOCI into earnings over the next 12 months are approximately $161 million of net gains 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 are designated as fair value hedges. The terms of these interest rate swap contracts correspond 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. During the year ended December 31, 2014, we entered into interest rate swap contracts with an aggregate notional amount of $2.25 billion with respect to our 1.25% 2017 Notes and our 2.20% 2019 Notes. The contracts have rates that range from three-month LIBOR plus 0.4% to three-month LIBOR plus 0.6%. During the year ended December 31, 2013, we entered into interest rate swap contracts with an aggregate notional amount of $4.4 billion with respect to our 3.45% 2020 Notes, 4.10% 2021 Notes, 3.875% 2021 Notes and 3.625% 2022 Notes. The contracts have rates that range from three-month LIBOR plus 1.1% to three-month LIBOR plus 2.0%. | |||||||||||||||
In addition, we previously had interest rate swap contracts outstanding 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 0.3% to LIBOR plus 2.6%. Due to historically low interest rates, in May 2012 we terminated all of these contracts resulting in the receipt of $397 million from the counterparties, which was included in Net cash provided by operating activities in the Consolidated Statements of Cash Flows. This amount is being recognized in Interest expense, net, in the Consolidated Statements of Income over the remaining lives of the related debt issuances. | |||||||||||||||
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. During the years ended December 31, 2014 and 2012, we included the unrealized losses on the hedged debt of $181 million and $20 million, respectively, in the same line item, Interest expense, net, in the Consolidated Statements of Income, as the offsetting unrealized gains of $181 million and $20 million, respectively, on the related interest rate swap agreements. During the year ended December 31, 2013 we included the unrealized gains on the hedged debt of $161 million in the same line item, Interest expense, net, in the Consolidated Statement of Income, as the offsetting unrealized losses of $161 million on the related interest rate swap agreements. | |||||||||||||||
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 December 31, 2014, 2013 and 2012, the total notional amounts of these foreign currency forward contracts were $875 million, $999 million and $629 million, respectively. | |||||||||||||||
The location in the 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): | |||||||||||||||
Years ended December 31, | |||||||||||||||
Derivatives not designated as hedging instruments | Statements of Income location | 2014 | 2013 | 2012 | |||||||||||
Foreign currency contracts | Interest and other income, net | $ | (10 | ) | $ | 15 | $ | 19 | |||||||
The fair values of derivatives included in the Consolidated Balance Sheets were as follows (in millions): | |||||||||||||||
Derivative assets | Derivative liabilities | ||||||||||||||
31-Dec-14 | 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 | $ | 32 | Accrued liabilities/ Other noncurrent liabilities | $ | 12 | |||||||||
Foreign currency contracts | Other current assets/ Other noncurrent assets | 356 | Accrued liabilities/ Other noncurrent liabilities | — | |||||||||||
Interest rate swap contracts | Other current assets/ Other noncurrent assets | 46 | Accrued liabilities/ Other noncurrent liabilities | 26 | |||||||||||
Total derivatives designated as hedging instruments | 434 | 38 | |||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||
Foreign currency contracts | Other current assets | 4 | Accrued liabilities | 4 | |||||||||||
Total derivatives not designated as hedging instruments | 4 | 4 | |||||||||||||
Total derivatives | $ | 438 | $ | 42 | |||||||||||
Derivative assets | Derivative liabilities | ||||||||||||||
31-Dec-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 | $ | 193 | Accrued liabilities/ Other noncurrent liabilities | $ | 4 | |||||||||
Foreign currency contracts | Other current assets/ Other noncurrent assets | 53 | Accrued liabilities/ Other noncurrent liabilities | 104 | |||||||||||
Interest rate swap contracts | Other current assets/ Other noncurrent assets | — | Accrued liabilities/ Other noncurrent liabilities | 161 | |||||||||||
Total derivatives designated as hedging instruments | 246 | 269 | |||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||
Foreign currency contracts | Other current assets | — | Accrued liabilities | 3 | |||||||||||
Total derivatives not designated as hedging instruments | — | 3 | |||||||||||||
Total derivatives | $ | 246 | $ | 272 | |||||||||||
Our derivative contracts that were in liability positions as of December 31, 2014, 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 derivative contracts for the three years ended December 31, 2014, are included within Net cash provided by operating activities in the Consolidated Statements of Cash Flows. |
Contingencies_and_commitments
Contingencies and commitments | 12 Months Ended | |||
Dec. 31, 2014 | ||||
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. | ||||
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, 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 this filing 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 of our legal proceedings and other matters are discussed below: | ||||
Sandoz Patent Litigation | ||||
On June 24, 2013, Sandoz, Inc. filed suit in the U.S. District Court for the Northern District of California (the California Northern District Court) against Amgen and Roche. Sandoz's complaint alleges that Sandoz has initiated a phase 3 clinical study of an etanercept product in patients with moderate to severe chronic plaque-type psoriasis, and that Sandoz intends to seek FDA regulatory approval to market and sell etanercept in the United States upon completion of the clinical trial. Sandoz seeks a declaratory judgment of non-infringement, invalidity and unenforceability of U.S. Patent Nos. 8,063,182 and 8,163,522. These patents are owned by Roche, and Amgen holds an exclusive license to these patents. The '182 and '522 patents expire in November 2028 and April 2029, respectively. On defendants’ motion, the California Northern District Court entered judgment dismissing the case for lack of subject matter jurisdiction on November 19, 2013. On December 12, 2013, Sandoz appealed the dismissal to the U.S. Court of Appeals for the Federal Circuit. On December 5, 2014, the appellate court affirmed the California Northern District Court’s dismissal of Sandoz’s complaint. | ||||
Sanofi/Regeneron Patent Litigation | ||||
On October 17, 2014, Amgen filed a lawsuit in the U.S. District Court of Delaware (the Delaware District Court) against Sanofi, Aventisub LLC, formerly doing business as Aventis Pharmaceuticals Inc. (collectively Sanofi), and Regeneron Pharmaceuticals, Inc. (Regeneron) for patent infringement of U.S. Patent Nos. 8,563,698, 8,829,165 and 8,859,741. On October 28, 2014, November 11, 2014, and November 17, 2014, Amgen filed related patent infringement lawsuits in the same court against Sanofi and Regeneron on newly issued U.S. Patent Nos. 8,871,913 and 8,871,914, U.S. Patent No. 8,883,983 and U.S. Patent No. 8,889,834, respectively. These seven patents, which are owned by Amgen, describe and claim monoclonal antibodies to proprotein convertase subtilisin/kexin type 9 (PCSK9). By its complaints, Amgen seeks an injunction to prevent the infringing manufacture, use and sale of Sanofi and Regeneron's alirocumab, a monoclonal antibody targeting PCSK9. On December 15, 2014, Sanofi and Regeneron filed their answer and, on that same day, the Delaware District Court consolidated these lawsuits into a single case. | ||||
Sandoz Filgrastim Litigation | ||||
On October 24, 2014, Amgen Inc. and Amgen Manufacturing, Limited (collectively Amgen) filed a lawsuit in the California Northern District Court against Sandoz Inc., Sandoz International GmbH and Sandoz GmbH (collectively Sandoz) for unfair competition under California Business & Professions Code § 17200, conversion under California common law and infringement of U.S. Patent No. 6,162,427. The lawsuit stems from Sandoz filing an application for FDA licensure of a filgrastim product as biosimilar to NEUPOGEN® under the Biologics Price Competition and Innovation Act (BPCIA), while having deliberately failed to comply with the BPCIA’s disclosure requirement to Amgen as the reference product sponsor. By its complaint, Amgen seeks, amongst other remedies, an injunction to cease Sandoz’s unauthorized reliance on Amgen’s biological license for filgrastim, including an order compelling Sandoz to suspend FDA review of their application until there is restitution for its non-compliance with the BPCIA, an injunction to prevent Sandoz from commercially marketing the biosimilar product until Amgen is restored to the position it would have been in had Sandoz met their obligations under the BPCIA and an injunction to prevent Sandoz from infringing, or inducing any infringing use of, filgrastim. On November 20, 2014, Sandoz Inc. filed its answer to the complaint. On January 6, 2015, Amgen filed a motion for partial judgment on the pleadings, and on January 23, 2015, Sandoz filed a cross-motion for judgment on the pleadings. On February 5, 2015, Amgen filed a motion for a preliminary injunction. A hearing on these three motions has been set for March 13, 2015. | ||||
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 (Arena), 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 alleged that the individual defendants breached their fiduciary duties with respect to the contents of the tender offer solicitation material. Each of the lawsuits sought, among other things, rescission of the merger agreement and attorneys’ fees and costs, and certain of the lawsuits sought 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 (the Consolidated Cases). On October 31, 2013, the plaintiffs in the Consolidated Cases filed a consolidated class action complaint seeking certification of a class and alleging breach of fiduciary duties of loyalty and good faith against the Onyx directors and aiding and abetting breach of fiduciary duties against Onyx. The complaint sought certification of a class of all Onyx shareholders, damages (including pre- and post-judgment interest), attorneys’ fees and expenses plus other relief. The plaintiffs in the Consolidated Cases simultaneously filed a notice of dismissal without prejudice of Amgen and Arena. Onyx and the Onyx directors filed demurrers to the consolidated class action complaint on November 22, 2013. Following a January 3, 2014 hearing, on January 9, 2014, the court entered an order overruling the demurrer on the breach of fiduciary duty of loyalty and good faith against the Onyx directors and sustained the demurrer without leave to amend against Onyx. On March 21, 2014, plaintiff Phil Rosen filed a motion seeking to certify a class and to be designated class representative, and on January 30, 2015, the court granted class certification and appointed Mr. Rosen as class representative in the Consolidated Cases. | ||||
Federal Securities Litigation - In re Amgen Inc. Securities Litigation | ||||
The six federal class action stockholder complaints filed against Amgen Inc., Kevin W. Sharer, Richard D. Nanula, Dennis M. Fenton, Roger M. Perlmutter, Brian M. McNamee, George J. Morrow, Edward V. Fritzky, Gilbert S. Omenn and Franklin P. Johnson, Jr., (the Federal Defendants) in the U.S. District Court for the Central District of California (the California Central District Court) on April 17, 2007 (Kairalla v. Amgen Inc., et al.), May 1, 2007 (Mendall v. Amgen Inc., et al., & Jaffe v. Amgen Inc., et al.), May 11, 2007 (Eldon v. Amgen Inc., et al.), May 21, 2007 (Rosenfield v. Amgen Inc., et al.) and June 18, 2007 (Public Employees' Retirement Association of Colorado v. Amgen Inc., et al.) were consolidated by the California Central District Court into one action captioned In re Amgen Inc. Securities Litigation. The consolidated complaint was filed with the California Central District Court on October 2, 2007. The consolidated complaint alleges that Amgen and these officers and directors made false statements that resulted in: (i) deceiving the investing public regarding Amgen's prospects and business; (ii) artificially inflating the prices of Amgen's publicly traded securities and (iii) causing plaintiff and other members of the class to purchase Amgen publicly traded securities at inflated prices. The complaint also makes off-label marketing allegations that, throughout the class period, the Federal Defendants improperly marketed Aranesp® and EPOGEN® for off-label uses while aware that there were alleged safety signals with these products. The plaintiffs seek class certification, compensatory damages, legal fees and other relief deemed proper. The Federal Defendants filed a motion to dismiss on November 8, 2007. On February 4, 2008, the California Central District Court granted in part, and denied in part, the Federal Defendants' motion to dismiss the consolidated amended complaint. Specifically, the California Central District Court granted the Federal Defendants' motion to dismiss as to individual defendants Fritzky, Omenn, Johnson, Fenton and McNamee, but denied the Federal Defendants' motion to dismiss as to individual defendants Sharer, Nanula, Perlmutter and Morrow. | ||||
A class certification hearing before the California Central District Court, was held on July 17, 2009, and on August 12, 2009, the California Central District Court granted plaintiffs' motion for class certification. On August 28, 2009, Amgen filed a petition for permission to appeal with the U.S. Court of Appeals for the Ninth Circuit (the Ninth Circuit Court) under Rule 23(f), regarding the Order on Class Certification and the Ninth Circuit Court granted Amgen's permission to appeal on December 11, 2009. On February 2, 2010, the California Central District Court granted Amgen's motion to stay the underlying action pending the outcome of the Ninth Circuit Court 23(f) appeal. On October 14, 2011, the appeal under Rule 23(f) was argued before the Ninth Circuit Court and on December 28, 2011, the Ninth Circuit Court denied the appeal. Amgen filed a petition for certiorari with the U.S. Supreme Court on March 3, 2012, and on June 11, 2012, the Court granted Amgen's petition. Oral argument occurred on November 5, 2012. On February 27, 2013, the U.S. Supreme Court affirmed the decision of the Ninth Circuit Court and remanded the case back to the California Central District Court for further proceedings. A revised July 28, 2015, trial date has been set by the California Central District Court. | ||||
On April 14, 2014, the California Central District Court entered an order allowing plaintiffs leave to file a second consolidated amended class action complaint in this securities class action lawsuit. While the new complaint was filed under seal, like the first consolidated class action complaint the new complaint alleges that the Federal Defendants made false statements that resulted in: (i) deceiving the investing public regarding Amgen's prospects and business; (ii) artificially inflating the prices of Amgen's publicly traded securities and (iii) causing plaintiff and other members of the class to purchase Amgen publicly traded securities at inflated prices. In addition, like the first consolidated class action complaint, the new complaint makes off-label marketing allegations that, throughout the class period, the Federal Defendants improperly marketed Aranesp® and EPOGEN® for off-label uses while aware that there were alleged safety signals with these products. The named defendants have not changed and the alleged class period remains the same. Plaintiffs continue to seek compensatory damages, legal fees and other relief deemed proper. | ||||
On May 5, 2014, plaintiffs filed an unsealed, redacted version of their second consolidated amended complaint. On May 13, 2014, the Federal Defendants filed a motion to dismiss that complaint. On August 4, 2014, the court issued an order granting the Federal Defendants’ motion to dismiss with respect to certain of the misrepresentations alleged in the complaint and otherwise denying the motion to dismiss. Following the court’s order, the complaint continues to allege that the Federal Defendants made false statements that resulted in: (i) deceiving the investing public regarding Amgen's prospects and business; (ii) artificially inflating the prices of Amgen's publicly traded securities; and (iii) causing plaintiff and other members of the class to purchase Amgen publicly traded securities at inflated prices. The complaint also continues to make off-label marketing allegations that, throughout the class period, the Federal Defendants improperly marketed Aranesp® and EPOGEN® for off-label uses while aware that there were alleged safety signals with these products. The named defendants have not changed and the alleged class period remains the same. | ||||
State Derivative Litigation | ||||
Larson v. Sharer, et al. | ||||
The three state stockholder derivative complaints filed against Amgen Inc., Kevin W. Sharer, George J. Morrow, Dennis M. Fenton, Brian M. McNamee, Roger M. Perlmutter, David Baltimore, Gilbert S. Omenn, Judith C. Pelham, Frederick W. Gluck, Jerry D. Choate, J. Paul Reason, Frank J. Biondi, Jr., Leonard D. Schaeffer, Frank C. Herringer, Richard D. Nanula, Willard H. Dere, Edward V. Fritzky, Franklin P. Johnson, Jr. and Donald B. Rice as defendants (the State Defendants) on May 1, 2007 (Larson v. Sharer, et al., & Anderson v. Sharer, et al.), and August 13, 2007 (Weil v. Sharer, et al.) in the Superior Court of the State of California, Ventura County (the Superior Court) were consolidated by the Superior Court under one action captioned Larson v. Sharer, et al. The consolidated complaint was filed on July 5, 2007. The complaint alleges that the State Defendants breached their fiduciary duties, wasted corporate assets, were unjustly enriched and violated the California Corporations Code. Plaintiffs allege that the State Defendants failed to disclose and/or misrepresented results of Aranesp® clinical studies, marketed both Aranesp® and EPOGEN® for off-label uses and that these actions or inactions caused stockholders to suffer damages. The complaints also allege insider trading by the State Defendants. The plaintiffs seek treble damages based on various causes of action, reformed corporate governance, equitable and/or injunctive relief, restitution, disgorgement of profits, benefits and other compensation, and legal costs. | ||||
An amended consolidated complaint was filed on March 13, 2008, adding Anthony Gringeri as a State Defendant and removing the causes of action for insider selling and misappropriation of information, violation of California Corporations Code Section 25402 and violation of California Corporations Code Section 25403. On July 14, 2008, the Superior Court dismissed without prejudice the consolidated state derivative class action. The judge also ordered a stay of any re-filing of an amended complaint until the federal court has determined in the In re Amgen Inc. Securities Litigation action whether any securities fraud occurred. On July 3, 2013, the parties filed a stipulation to permit the plaintiffs to file an amended complaint asserting additional grounds for the defendants' alleged breaches of fiduciary duty. | ||||
Federal Derivative Litigation | ||||
On May 7, 2007, the stockholder derivative lawsuit of Durgin v. Sharer, et al., was filed in the California Central District Court and named Amgen Inc., Kevin W. Sharer, George J. Morrow, Dennis M. Fenton, Brian M. McNamee, Roger M. Perlmutter, David Baltimore, Gilbert S. Omenn, Judith C. Pelham, Frederick W. Gluck, Jerry D. Choate, J. Paul Reason, Frank J. Biondi, Jr., Leonard D. Schaeffer, Frank C. Herringer, Richard D. Nanula, Edward V. Fritzky and Franklin P. Johnson, Jr. as defendants. The complaint alleges the same claims and requests the same relief as in the three state stockholder derivative complaints now consolidated as Larson v. Sharer, et al. The case has been stayed for all purposes until thirty days after a final ruling on the motion to dismiss by the California Central District Court in the In re Amgen Inc. Securities Litigation action. | ||||
On September 21, 2007, the stockholder derivative lawsuit of Rosenblum v. Sharer, et al., was filed in the California Central District Court. This lawsuit was brought by a stockholder who previously made a demand on the Amgen Board on May 14, 2007. The complaint alleges that the defendants breached their fiduciary duties, wasted corporate assets and were unjustly enriched. Plaintiffs allege that the defendants failed to disclose and/or misrepresented results of Aranesp® clinical studies, marketed both Aranesp® and EPOGEN® for off-label uses and that these actions or inactions as well as the Amgen market strategy caused damage to the Company resulting in several inquiries, investigations and lawsuits that are costly to defend. The complaint also alleges insider trading by the defendants. The plaintiffs seek treble damages based on various causes of action, reformed corporate governance, equitable and/or injunctive relief, restitution, disgorgement of profits, benefits and other compensation, and legal costs. The case was stayed for all purposes until thirty days after a final ruling on the motion to dismiss by the California Central District Court in the In re Amgen Inc. Securities Litigation action. | ||||
Thereafter, on May 1, 2008, plaintiff in Rosenblum v. Sharer, et al., filed an amended complaint which removed Dennis Fenton as a defendant and also eliminated the claims for insider selling by defendants. On July 30, 2008, the California Central District Court granted Amgen and the defendants' motion to dismiss without prejudice and also granted a stay of the case pending resolution of the In re Amgen Inc. Securities Litigation action. | ||||
ERISA Litigation | ||||
On August 20, 2007, the Employee Retirement Income Security Act (ERISA) class action lawsuit of Harris v. Amgen Inc., et al., was filed in the California Central District Court and named Amgen Inc., Kevin W. Sharer, Frank J. Biondi, Jr., Jerry Choate, Frank C. Herringer, Gilbert S. Omenn, David Baltimore, Judith C. Pelham, Frederick W. Gluck, Leonard D. Schaeffer, Jacqueline Allred, Raul Cermeno, Jackie Crouse, Lori Johnston, Michael Kelly and Charles Bell as defendants. Plaintiffs claim that Amgen and the individual defendants breached their fiduciary duties and their duty of loyalty by continuing to offer the Amgen stock fund as an investment option in the Amgen Retirement and Savings Plan and the Retirement and Savings Plan for Amgen Manufacturing Limited (the Plans) despite the alleged off-label promotion of both Aranesp® and EPOGEN® and despite a number of allegedly undisclosed study results that allegedly demonstrated safety concerns in patients using ESAs. Plaintiffs also allege that defendants breached their obligations under ERISA by not disclosing to plan participants the alleged off-label marketing and study results. On February 4, 2008, the California Central District Court dismissed the complaint with prejudice as to plaintiff Harris, who had filed claims against Amgen Inc. The claims alleged by the second plaintiff, Ramos, were also dismissed but the court granted the plaintiff leave to amend his complaint. On February 1, 2008, the plaintiffs appealed the decision by the California Central District Court to dismiss the claims of both plaintiffs Harris and Ramos to the Ninth Circuit Court. On May 19, 2008, plaintiff Ramos in the Harris v. Amgen Inc., et al., action filed another lawsuit captioned Ramos v. Amgen Inc., et al., in the California Central District Court. The lawsuit is another ERISA class action. The Ramos v. Amgen Inc., et al., matter names the same defendants in the Harris v. Amgen Inc., et al., matter plus four new defendants: Amgen Manufacturing Limited, Richard Nanula, Dennis Fenton and the Fiduciary Committee of the Plans. On July 14, 2009, the Ninth Circuit Court reversed the California Central District Court's decision in the Harris matter and remanded the case back to the California Central District Court. In the meantime, a third ERISA class action was filed by Don Hanks on June 2, 2009 in the California Central District Court alleging the same ERISA violations as in the Harris and Ramos lawsuits. | ||||
On August 10, 2009, the Harris, Ramos and Hanks matters were consolidated by the California Central District Court into one action captioned Harris, et. al. v. Amgen Inc. On October 13, 2009, the California Central District Court granted plaintiffs Harris' and Ramos' motion to be appointed interim co-lead counsel. Plaintiffs filed an amended complaint on November 11, 2009 and added two additional plaintiffs, Jorge Torres and Albert Cappa. Amgen filed a motion to dismiss the amended/consolidated complaint, and on March 2, 2010, the California Central District Court dismissed the entire lawsuit without prejudice. Plaintiffs filed an amended complaint on March 23, 2010. Amgen then filed another motion to dismiss on April 20, 2010. On June 16, 2010, the California Central District Court entered an order dismissing the entire lawsuit with prejudice. On June 24, 2010, the plaintiffs filed a notice of appeal with the Ninth Circuit Court. On June 4, 2013, the Ninth Circuit Court reversed the decision of the California Central District Court and remanded the case back to the California Central District Court for further proceedings. On June 18, 2013, Amgen petitioned the Ninth Circuit Court for rehearing and/or rehearing en banc. The Ninth Circuit Court issued an amended opinion and denied Amgen’s petition for rehearing and rehearing en banc on October 23, 2013. Amgen moved for a stay of the mandate which the Ninth Circuit Court granted on November 5, 2013. A petition for certiorari was filed with the U.S. Supreme Court on January 21, 2014. | ||||
On June 30, 2014, the U.S. Supreme Court granted the petition for certiorari filed by Amgen and the other named defendants, vacated the judgment of the Ninth Circuit Court and remanded this case to the Ninth Circuit Court for reconsideration in light of the U.S. Supreme Court’s decision in Fifth Third Bancorp v. Dudenhoeffer, decided June 25, 2014. In Fifth Third, the U.S. Supreme Court held that no presumption of prudence exists for employee stock ownership plan fiduciaries regardless of plan language and the court provided general guidance as to what factors courts should consider when assessing whether plan fiduciaries breached their duty of prudence owed to plan participants. On October 23, 2014, the Ninth Circuit Court reaffirmed its earlier decision of June 4, 2013. On November 13, 2014, Amgen filed a petition for rehearing en banc with the Ninth Circuit Court. | ||||
Commitments | ||||
We lease certain facilities and equipment related primarily to administrative, R&D, sales and marketing activities under non-cancelable operating leases that expire through 2032. The following table summarizes the minimum future rental commitments under non-cancelable operating leases as of December 31, 2014 (in millions): | ||||
2015 | $ | 135 | ||
2016 | 168 | |||
2017 | 155 | |||
2018 | 143 | |||
2019 | 139 | |||
Thereafter | 294 | |||
Total minimum operating lease commitments | $ | 1,034 | ||
Included in the table above are future rental commitments for abandoned leases in the amount of $272 million. There were no material charges for lease abandonments related to the restructuring plan that commenced in 2014 (see Note 2, Restructuring and other cost saving initiatives). Rental expense on operating leases for the years ended December 31, 2014, 2013 and 2012, was $126 million, $125 million and $117 million, respectively. |
Segment_information
Segment information | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Segment information | Segment information | |||||||||||
We operate in one business segment—human therapeutics. Therefore, results of our operations are reported on a consolidated basis for purposes of segment reporting, consistent with internal management reporting. Enterprise-wide disclosures about product sales; revenues and long-lived assets by geographic area; and revenues from major customers are presented below. | ||||||||||||
Revenues | ||||||||||||
Revenues were as follows (in millions): | ||||||||||||
Years ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Product sales: | ||||||||||||
Neulasta® | $ | 4,596 | $ | 4,392 | $ | 4,092 | ||||||
NEUPOGEN® | 1,159 | 1,398 | 1,260 | |||||||||
ENBREL | 4,688 | 4,551 | 4,236 | |||||||||
XGEVA® | 1,221 | 1,019 | 748 | |||||||||
Prolia® | 1,030 | 744 | 472 | |||||||||
EPOGEN® | 2,031 | 1,953 | 1,941 | |||||||||
Aranesp® | 1,930 | 1,911 | 2,040 | |||||||||
Sensipar®/Mimpara® | 1,158 | 1,089 | 950 | |||||||||
Vectibix® | 505 | 389 | 359 | |||||||||
Nplate® | 469 | 427 | 368 | |||||||||
Kyprolis® | 331 | 73 | — | |||||||||
BLINCYTO™ | 3 | — | — | |||||||||
Other | 206 | 246 | 173 | |||||||||
Total product sales | 19,327 | 18,192 | 16,639 | |||||||||
Other revenues | 736 | 484 | 626 | |||||||||
Total revenues | $ | 20,063 | $ | 18,676 | $ | 17,265 | ||||||
Geographic information | ||||||||||||
Outside the United States, we sell products principally in Europe and Canada. The geographic classification of product sales was based on the location of the customer. The geographic classification of all other revenues was based on the domicile of the entity from which the revenues were earned. | ||||||||||||
Certain geographic information with respect to revenues and long-lived assets (consisting of property, plant and equipment) was as follows (in millions): | ||||||||||||
Years ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Revenues: | ||||||||||||
United States | $ | 15,396 | $ | 14,480 | $ | 13,415 | ||||||
Rest of the world (ROW) | 4,667 | 4,196 | 3,850 | |||||||||
Total revenues | $ | 20,063 | $ | 18,676 | $ | 17,265 | ||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Long-lived assets: | ||||||||||||
United States | $ | 2,544 | $ | 2,772 | ||||||||
Puerto Rico | 1,771 | 1,822 | ||||||||||
ROW | 908 | 755 | ||||||||||
Total long-lived assets | $ | 5,223 | $ | 5,349 | ||||||||
Major customers | ||||||||||||
In the United States, we sell primarily to pharmaceutical wholesale distributors. We utilize those wholesale distributors as the principal means of distributing our products to healthcare providers. Outside the United States, we sell principally to healthcare providers and/or pharmaceutical wholesale distributors depending on the distribution practice in each country. We monitor the financial condition of our larger customers, and we limit our credit exposure by setting credit limits and, for certain circumstances, requiring letters of credit. | ||||||||||||
We had product sales to three customers each accounting for more than 10% of total revenues for each of the years ended December 31, 2014, 2013 and 2012. For 2014, on a combined basis, these customers accounted for 77% and 94% of worldwide gross revenues and U.S. gross product sales, respectively, as noted in the following table. Certain information with respect to these customers was as follows (dollar amounts in millions): | ||||||||||||
Years ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
AmerisourceBergen Corporation: | ||||||||||||
Gross product sales | $ | 9,142 | $ | 8,527 | $ | 7,556 | ||||||
% of total gross revenues | 34 | % | 35 | % | 34 | % | ||||||
% of U.S. gross product sales | 43 | % | 44 | % | 43 | % | ||||||
McKesson Corporation: | ||||||||||||
Gross product sales | $ | 8,011 | $ | 6,440 | $ | 5,898 | ||||||
% of total gross revenues | 30 | % | 27 | % | 27 | % | ||||||
% of U.S. gross product sales | 35 | % | 32 | % | 32 | % | ||||||
Cardinal Health, Inc.: | ||||||||||||
Gross product sales | $ | 3,407 | $ | 3,209 | $ | 3,245 | ||||||
% of total gross revenues | 13 | % | 13 | % | 15 | % | ||||||
% of U.S. gross product sales | 16 | % | 17 | % | 19 | % | ||||||
At December 31, 2014 and 2013, amounts due from these three customers each exceeded 10% of gross trade receivables and accounted for 69% and 63%, respectively, of net trade receivables on a combined basis. At December 31, 2014 and 2013, 30% and 35%, respectively, of trade receivables, net were due from customers located outside the United States, primarily in Europe. Our total allowance for doubtful accounts as of December 31, 2014 and 2013, was not material. |
Quarterly_financial_data_unaud
Quarterly financial data (unaudited) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Quarterly financial data (unaudited) | Quarterly financial data (unaudited) | |||||||||||||||
2014 Quarters ended | ||||||||||||||||
(In millions, except per share data) | December 31 | September 30 | June 30 | March 31 | ||||||||||||
Product sales | $ | 5,174 | $ | 4,848 | $ | 4,949 | $ | 4,356 | ||||||||
Gross profit from product sales | 3,991 | 3,780 | 3,868 | 3,266 | ||||||||||||
Net income | 1,294 | 1,244 | 1,547 | 1,073 | ||||||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 1.7 | $ | 1.63 | $ | 2.04 | $ | 1.42 | ||||||||
Diluted | $ | 1.68 | $ | 1.61 | $ | 2.01 | $ | 1.4 | ||||||||
2013 Quarters ended | ||||||||||||||||
(In millions, except per share data) | December 31 | September 30 | June 30 | March 31 | ||||||||||||
Product sales | $ | 4,799 | $ | 4,647 | $ | 4,595 | $ | 4,151 | ||||||||
Gross profit from product sales | 3,770 | 3,859 | 3,810 | 3,407 | ||||||||||||
Net income | 1,021 | 1,368 | 1,258 | 1,434 | ||||||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 1.35 | $ | 1.81 | $ | 1.67 | $ | 1.91 | ||||||||
Diluted | $ | 1.33 | $ | 1.79 | $ | 1.65 | $ | 1.88 | ||||||||
SCHEDULE_II_VALUATION_AND_QUAL
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ||||||||||||||||||||
Schedule of Valuation and Qualifying Accounts Disclosure | SCHEDULE II | |||||||||||||||||||
AMGEN INC. | ||||||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||||||
Years ended December 31, 2014, 2013 and 2012 | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
Allowance for doubtful accounts | Balance at | Additions | Other | Deductions | Balance | |||||||||||||||
beginning | charged to | additions | at end | |||||||||||||||||
of period | costs and | of | ||||||||||||||||||
expenses | period | |||||||||||||||||||
Year ended December 31, 2014 | $ | 59 | $ | 3 | $ | — | $ | 12 | $ | 50 | ||||||||||
Year ended December 31, 2013 | $ | 61 | $ | 5 | $ | — | $ | 7 | $ | 59 | ||||||||||
Year ended December 31, 2012 | $ | 54 | $ | 7 | $ | — | $ | — | $ | 61 | ||||||||||
Summary_of_significant_account1
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Business | Business |
Amgen Inc. (including its subsidiaries, referred to as “Amgen,” “the Company,” “we,” “our” or “us”) is a global biotechnology pioneer that discovers, develops, manufactures and delivers innovative human therapeutics. We operate in one business segment: human therapeutics. | |
Principles of consolidation | Principles of consolidation |
The consolidated financial statements include the accounts of Amgen as well as its majority-owned subsidiaries. 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 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 consolidated financial statements and accompanying notes. Actual results may differ from those estimates. | |
Product sales | Product sales |
Sales of our products are recognized when shipped and title and risk of loss have passed. Product sales are recorded net of accruals for estimated rebates, wholesaler chargebacks, discounts and other deductions (collectively “sales deductions”) and returns. Taxes collected from customers and remitted to government authorities related to the sales of the Company’s products, primarily in Europe, are excluded from revenues. | |
We recognized revenue from the sale of product to the U.S. federal government for stockpile in accordance with U.S. 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® during the year ended December 31, 2013, for purchases by the federal government for the SNS. There were no purchases by the federal government for the SNS during the years ended December 31, 2014 and 2012. We are contracted to manage this inventory of product until the federal government requests shipment. | |
Other revenues | Other revenues |
Other revenues consist primarily of royalty income and corporate partner revenues. Royalties from licensees are based on third-party sales of licensed products and are recorded in accordance with contract terms when third-party results are reliably measurable and collectability is reasonably assured. Royalty estimates are made in advance of amounts collected using historical and forecasted trends. Corporate partner revenues are comprised mainly of amounts earned from Kirin-Amgen, Inc. (K-A) and other third parties for certain research and development (R&D) services, which are recognized as the R&D services are performed, as well as our share of the U.S. pre-tax Nexavar® commercial profits generated from our collaboration with Bayer HealthCare Pharmaceuticals, Inc. (Bayer). Corporate partner revenues also include license fees and milestone payments earned from K-A and from other third parties. See Multiple-deliverable revenue arrangements, discussed below, Note 7, Collaborative arrangements, and Note 8, Related party transactions. | |
Multiple-deliverable revenue arrangements | Multiple-deliverable revenue arrangements |
From time to time, we enter into arrangements for the R&D, manufacture and/or commercialization of products and product candidates. These arrangements may require us to deliver various rights, services and/or goods across the entire life cycle of a product or product candidate, including (i) intellectual property rights/licenses, (ii) R&D services, (iii) manufacturing services and/or (iv) commercialization services. The underlying terms of these arrangements generally provide for consideration to Amgen in the form of non-refundable upfront license payments, R&D and commercial performance milestone payments, cost sharing and/or royalty payments. | |
In arrangements involving the delivery of more than one element, each required deliverable is evaluated to determine whether it qualifies as a separate unit of accounting. For Amgen, this determination is generally based on whether the deliverable has “stand-alone value” to the customer. The arrangement’s consideration that is fixed and determinable is then allocated to each separate unit of accounting based on the relative selling price of each deliverable. The estimated selling price of each deliverable is determined using the following hierarchy of values: (i) vendor-specific objective evidence of fair value, (ii) third-party evidence of selling price and (iii) best estimate of selling price (BESP). The BESP reflects our best estimate of what the selling price would be if the deliverable was regularly sold by us on a stand-alone basis. In general, the consideration allocated to each unit of accounting is recognized as the related goods or services are delivered, limited to the consideration that is not contingent upon future deliverables. Consideration associated with at-risk substantive performance milestones is recognized as revenue upon the achievement of the related milestone, as defined in the respective contracts. | |
Research and development costs | Research and development costs |
R&D costs are expensed as incurred and include primarily salaries, benefits and other staff-related costs; facilities and overhead costs; clinical trial and related clinical manufacturing costs; contract services and other outside costs; information systems’ costs and amortization of acquired technology used in R&D with alternative future uses. R&D expenses also include costs and cost recoveries associated with third-party R&D arrangements such as with K-A, including upfront fees and milestones paid to third parties in connection with technologies which had not reached technological feasibility and did not have an alternative future use. Net payment or reimbursement of R&D costs is recognized when the obligations are incurred or as we become entitled to the cost recovery. See Note 7, Collaborative arrangements, and Note 8, Related party transactions. | |
Selling, general and administrative costs | Selling, general and administrative costs |
Selling, general and administrative (SG&A) costs are comprised primarily of salaries, benefits and other staff-related costs associated with sales and marketing, finance, legal and other administrative personnel; facilities and overhead costs; outside marketing, advertising and legal expenses; the U.S. healthcare reform federal excise fee on Branded Prescription Pharmaceutical Manufacturers and Importers; and other general and administrative costs. Advertising costs are expensed as incurred. SG&A expenses also include costs and cost recoveries associated with marketing and promotion efforts under certain collaboration arrangements. Net payment or reimbursement of SG&A costs is recognized when the obligations are incurred or we become entitled to the cost recovery. See Note 7, Collaborative arrangements. | |
Stock-based compensation | Stock-based compensation |
We have stock-based compensation plans under which various types of equity-based awards are granted, including restricted stock units (RSUs), performance units and stock options. The estimated fair values of RSUs and stock option awards which are subject only to service conditions with graded vesting are generally recognized as compensation expense on a straight-line basis over the service period. The estimated fair values of performance unit awards are generally recognized as compensation expense as the awards vest ratably from the grant date to the end of the performance period. See Note 4, Stock-based compensation. | |
Income taxes | Income taxes |
We provide for income taxes based on pretax income and applicable tax rates available in the various jurisdictions in which we operate. Deferred income taxes are recorded for the expected tax consequences of temporary differences between the bases of assets and liabilities for financial reporting purposes and amounts recognized for income tax purposes. We record a valuation allowance to reduce our deferred tax assets to the amount of future tax benefit that is more likely than not to be realized. | |
We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities based on the technical merits of the position. The tax benefit recognized in the financial statements for a particular tax position is based on the largest benefit that is more likely than not to be realized. The amount of unrecognized tax benefits (UTBs) is adjusted as appropriate for changes in facts and circumstances, such as significant amendments to existing tax law, new regulations or interpretations by the taxing authorities, new information obtained during a tax examination, or resolution of an examination. We recognize both accrued interest and penalties, where appropriate, related to UTBs in income tax expense. See Note 5, Income taxes. | |
Business combinations | Business combinations |
Business combinations are accounted for using the acquisition method of accounting. Under the acquisition method, assets acquired, including in-process research and development (IPR&D) projects, and liabilities assumed are recorded at their respective fair values as of the acquisition date in our consolidated financial statements. The excess of the fair value of consideration transferred over the fair value of the net assets acquired is recorded as goodwill. Contingent consideration obligations incurred in connection with a business combination (including the assumption of an acquiree's liability arising from a business combination it consummated prior to our acquisition) are recorded at their fair values on the acquisition date and remeasured at their fair values each subsequent reporting period until the related contingencies are resolved. The resulting changes in fair values are recorded in earnings. See Note 3, Business combinations, and Note 16, Fair value measurement. | |
Cash equivalents | Cash equivalents |
We consider cash equivalents to be only those investments which are highly liquid, readily convertible to cash and which mature within three months from the date of purchase. | |
Available-for-sale investments | Available-for-sale investments |
We consider our investment portfolio available-for-sale and, accordingly, these investments are recorded at fair value with unrealized gains and losses generally recorded in other comprehensive income. Investments with maturities beyond one year, other than Restricted investments, may be classified as short-term marketable securities in the Consolidated Balance Sheets due to their highly liquid nature and because they represent the Company's investments that are available for current operations. See Note 9, Available-for-sale investments, and Note 16, Fair value measurement. | |
Inventories | Inventories |
Inventories are stated at the lower of cost or market. Cost, which includes amounts related to materials, labor and overhead, is determined in a manner that approximates the first-in, first-out method. See Note 10, Inventories. | |
Derivatives | Derivatives |
We recognize all of our derivative instruments as either assets or liabilities at fair value in the Consolidated Balance Sheets. The accounting for changes in the fair value of a derivative instrument depends upon whether the derivative has been formally designated and qualifies as part of a hedging relationship under the applicable accounting standards and, further, on the type of hedging relationship. For derivatives formally designated as hedges, we assess both at inception and quarterly thereafter, whether the hedging derivatives are highly effective in offsetting changes in either the fair value or cash flows of the hedged item. Our derivatives that are not designated and do not qualify as hedges are adjusted to fair value through current earnings. See Note 16, Fair value measurement, and Note 17, Derivative instruments. | |
Property, plant and equipment, net | Property, plant and equipment, net |
Property, plant and equipment is recorded at historical cost, net of accumulated depreciation, amortization and, if applicable, impairment charges. We review our property, plant and equipment assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Depreciation is provided over the assets’ useful lives on a straight-line basis. Leasehold improvements are amortized on a straight-line basis over the shorter of their estimated useful lives or lease terms. See Note 11, Property, plant and equipment. | |
Goodwill and other intangible assets | Goodwill and other intangible assets |
Finite-lived intangible assets are recorded at cost, net of accumulated amortization and, if applicable, impairment charges. Amortization of finite-lived intangible assets is provided over their estimated useful lives on a straight-line basis or the pattern in which economic benefits are consumed, if reliably determinable. We review our finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. See Note 12, Goodwill and other intangible assets. | |
The estimated fair values of IPR&D projects acquired in a business combination which are not complete are capitalized and accounted for as indefinite-lived intangible assets until completion or abandonment of the related R&D efforts. Upon successful completion of the project, the capitalized amount is amortized over its estimated useful life. If a project is abandoned, all remaining capitalized amounts are written-off immediately. There are often major risks and uncertainties associated with IPR&D projects as we are required to obtain regulatory approvals in order to be able to market the resulting products. Such approvals require completing clinical trials that demonstrate a product candidate is safe and effective. Consequently, the eventual realized value of the acquired IPR&D project may vary from its estimated fair value at the date of acquisition, and IPR&D impairment charges may occur in future periods. | |
Capitalized IPR&D projects are tested for impairment annually and whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. We consider various factors for potential impairment, including the current legal and regulatory environment and the competitive landscape. Adverse clinical trial results, significant delays in obtaining marketing approval, the inability to bring a product to market and the introduction or advancement of competitors' products could result in the related intangible assets to be partially or fully impaired. | |
We perform an impairment test of goodwill annually and whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. To date, an impairment of goodwill has not been recorded. See Note 12, Goodwill and other intangible assets. | |
Restricted investments | Restricted investments |
As of December 31, 2013, we had restricted investments on our Consolidated Balance Sheet that were owned by ATL Holdings Limited (ATL Holdings), a wholly-owned subsidiary. ATL Holdings was an entity distinct from the Company and its other subsidiaries, with separate assets and liabilities. Because certain third parties owned Class A preferred shares of ATL Holdings, this entity was required to hold restricted investments, which were composed of interest-bearing securities, cash and related interest receivable as of December 31, 2013. On May 22, 2014, the Company repurchased all of the outstanding Class A preferred shares, and therefore, there were no remaining restricted investments on our Consolidated Balance Sheet as of December 31, 2014. See Note 14, Financing arrangements. | |
Contingencies | Contingencies |
In the ordinary course of business, we are involved in various legal proceedings and other matters such as intellectual property disputes, contractual disputes, governmental investigations and class action suits which are complex in nature and have outcomes that are difficult to predict. Certain of these proceedings are discussed in Note 18, Contingencies and commitments. 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 consider all relevant factors when making assessments regarding these contingencies. | |
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. | |
Foreign currency translation | Foreign currency translation |
The net assets of international subsidiaries where the local currencies have been determined to be the functional currencies are translated into U.S. dollars using current exchange rates. The U.S. dollar effects that arise from translating net assets of these subsidiaries at changing rates are recognized in other comprehensive income. The earnings of these subsidiaries are translated into U.S. dollars using average exchange rates. | |
Recent accounting pronouncements | Recent accounting pronouncements |
In May 2014, a new accounting standard was issued that amends the guidance for the recognition of revenue from contracts with customers to transfer goods and services. This new standard will be effective for interim and annual periods beginning January 1, 2017, is required to be adopted retrospectively and early adoption is not permitted. We are currently evaluating the provisions of this new standard and have not yet determined what impact it will have on our financial statements. |
Restructuring_and_other_cost_s1
Restructuring and other cost savings initiatives (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||
Summary of restructuring charges by type of activity | The following table summarizes the charges recorded related to the restructuring plan by type of activity and the locations recognized within the Consolidated Statement of Income (in millions): | ||||||||||||||||||||
During the year ended December 31, 2014 | |||||||||||||||||||||
Separation Costs | Asset Impairments | Accelerated Depreciation | Other | Total | |||||||||||||||||
Cost of sales | $ | — | $ | 81 | $ | 23 | $ | — | $ | 104 | |||||||||||
Research and development | — | — | 28 | 21 | 49 | ||||||||||||||||
Selling, general and administrative | — | — | 4 | 5 | 9 | ||||||||||||||||
Other | 377 | 6 | — | 13 | 396 | ||||||||||||||||
Total | $ | 377 | $ | 87 | $ | 55 | $ | 39 | $ | 558 | |||||||||||
Restructuring liabilities roll forward | The following table summarizes the expenses (excluding non-cash charges) and payments regarding liabilities related to the restructuring plan (in millions): | ||||||||||||||||||||
During the year ended December 31, 2014 | |||||||||||||||||||||
Separation Costs | Other | Total | |||||||||||||||||||
Restructuring liabilities as of January 1, 2014 | $ | — | $ | — | $ | — | |||||||||||||||
Expense | 353 | 32 | 385 | ||||||||||||||||||
Payments | (132 | ) | (9 | ) | (141 | ) | |||||||||||||||
Restructuring liabilities as of December 31, 2014 | $ | 221 | $ | 23 | $ | 244 | |||||||||||||||
Business_combinations_Tables
Business combinations (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Schedule of recognized identified assets acquired and liabilities assumed | The consideration to acquire deCODE, KAI, MN, and Micromet was allocated to the acquisition date fair values of the assets acquired and liabilities assumed as follows (in millions): | ||||||||||||||||
deCODE | KAI | MN | Micromet | ||||||||||||||
IPR&D | $ | — | $ | 240 | $ | — | $ | 570 | |||||||||
Developed product technology rights | — | — | 81 | — | |||||||||||||
R&D technology rights | 465 | — | — | 350 | |||||||||||||
Marketing-related rights | — | — | 82 | — | |||||||||||||
Deferred income taxes, net | (37 | ) | (59 | ) | (45 | ) | (191 | ) | |||||||||
Other assets (liabilities), net | (29 | ) | 26 | 179 | 170 | ||||||||||||
Goodwill | — | 125 | 380 | 247 | |||||||||||||
Total consideration | $ | 399 | $ | 332 | $ | 677 | $ | 1,146 | |||||||||
Onyx Pharmaceuticals, Inc. [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Aggregate acquisition date consideration to acquire an entity | The aggregate consideration to acquire Onyx was paid in cash and consisted of (in millions): | ||||||||||||||||
Total consideration transferred | $ | 9,517 | |||||||||||||||
Compensation expense | 197 | ||||||||||||||||
Total cash paid | $ | 9,714 | |||||||||||||||
Schedule of recognized identified assets acquired and liabilities assumed | The consideration to acquire Onyx was allocated to the acquisition date fair values of assets acquired and liabilities assumed as follows (in millions): | ||||||||||||||||
Cash and cash equivalents | $ | 319 | |||||||||||||||
Marketable securities | 337 | ||||||||||||||||
Inventories | 170 | ||||||||||||||||
Indefinite-lived intangible assets - IPR&D | 1,180 | ||||||||||||||||
Finite-lived intangible assets - Developed product technology rights | 6,190 | ||||||||||||||||
Finite-lived intangible assets - Licensing rights | 2,792 | ||||||||||||||||
Goodwill | 2,402 | ||||||||||||||||
Convertible debt | (742 | ) | |||||||||||||||
Assumed contingent consideration | (261 | ) | |||||||||||||||
Deferred income taxes, net | (3,011 | ) | |||||||||||||||
Other assets (liabilities), net | 141 | ||||||||||||||||
Total consideration | $ | 9,517 | |||||||||||||||
Business acquisition, pro forma information | The following table presents supplemental pro forma information as if the acquisition of Onyx had occurred on January 1, 2012 (in millions, unaudited): | ||||||||||||||||
Years ended December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Pro forma net revenues | $ | 19,141 | $ | 17,616 | |||||||||||||
Pro forma net income | 4,848 | 3,700 | |||||||||||||||
Product Rights [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Aggregate acquisition date consideration to acquire an entity | The aggregate consideration transferred consisted of (in millions): | ||||||||||||||||
Total consideration transferred | $ | 497 | |||||||||||||||
Settlement of preexisting relationship at fair value | (99 | ) | |||||||||||||||
Total consideration transferred to acquire the Product Rights | $ | 398 | |||||||||||||||
Schedule of recognized identified assets acquired and liabilities assumed | The consideration to acquire the Product Rights was allocated to the acquisition date fair values of assets as follows (in millions): | ||||||||||||||||
Finite-lived intangible assets - Marketing-related rights | $ | 363 | |||||||||||||||
Finite-lived intangible assets - Developed product technology rights | 11 | ||||||||||||||||
Goodwill | 3 | ||||||||||||||||
Other assets | 21 | ||||||||||||||||
Total consideration | $ | 398 | |||||||||||||||
Stockbased_compensation_Tables
Stock-based compensation (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Components of stock-based compensation expense recognized in the Consolidated Statements of Income | The following table reflects the components of stock-based compensation expense recognized in our Consolidated Statements of Income (in millions): | ||||||||||||
Years ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
RSUs | $ | 219 | $ | 206 | $ | 186 | |||||||
Performance units | 171 | 163 | 117 | ||||||||||
Stock options | 18 | 34 | 59 | ||||||||||
Total stock-based compensation expense, pretax | 408 | 403 | 362 | ||||||||||
Tax benefit from stock-based compensation expense | (152 | ) | (149 | ) | (134 | ) | |||||||
Total stock-based compensation expense, net of tax | $ | 256 | $ | 254 | $ | 228 | |||||||
Restricted stock units Information | The following summarizes select information regarding our RSUs: | ||||||||||||
During the year ended December 31, 2014 | |||||||||||||
Units | Weighted-average | ||||||||||||
(in millions) | grant date | ||||||||||||
fair value | |||||||||||||
Balance nonvested at December 31, 2013 | 8.8 | $ | 76.75 | ||||||||||
Granted | 2.3 | $ | 115.63 | ||||||||||
Vested | (3.0 | ) | $ | 63.36 | |||||||||
Forfeited | (1.0 | ) | $ | 90.77 | |||||||||
Balance nonvested at December 31, 2014 | 7.1 | $ | 92.88 | ||||||||||
Stock options information | The following summarizes select information regarding our stock options: | ||||||||||||
During the year ended December 31, 2014 | |||||||||||||
Options | Weighted- | Weighted- | Aggregate | ||||||||||
(in millions) | average | average | intrinsic | ||||||||||
exercise price | remaining | value | |||||||||||
contractual | (in millions) | ||||||||||||
life (years) | |||||||||||||
Balance unexercised at December 31, 2013 | 7.4 | $ | 54.91 | ||||||||||
Granted | — | $ | — | ||||||||||
Exercised | (3.1 | ) | $ | 55.42 | |||||||||
Expired/forfeited | (0.2 | ) | $ | 56.18 | |||||||||
Balance unexercised at December 31, 2014 | 4.1 | $ | 54.48 | 4.2 | $ | 432 | |||||||
Vested or expected to vest at December 31, 2014 | 4.1 | $ | 54.48 | 4.2 | $ | 432 | |||||||
Exercisable at December 31, 2014 | 3.5 | $ | 54.45 | 3.9 | $ | 371 | |||||||
Weighted average assumptions used and the resulting weighted average grant date fair value of performance units | The weighted-average assumptions used in these models and the resulting weighted-average grant date fair values of our performance units were as follows: | ||||||||||||
Years ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Closing price of our common stock on grant date | $ | 112.43 | $ | 92.03 | $ | 68.75 | |||||||
Volatility | 23.8 | % | 21 | % | 22.9 | % | |||||||
Risk-free interest rate | 0.8 | % | 0.4 | % | 0.5 | % | |||||||
Fair value of unit | $ | 104.47 | $ | 102.73 | $ | 78.21 | |||||||
Income_taxes_Tables
Income taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Provision for income taxes | The provision for income taxes included the following (in millions): | |||||||||||
Years ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current provision: | ||||||||||||
Federal | $ | 251 | $ | 54 | $ | 438 | ||||||
State | 58 | 26 | 47 | |||||||||
Foreign | 194 | 191 | 158 | |||||||||
Total current provision | 503 | 271 | 643 | |||||||||
Deferred provision (benefit): | ||||||||||||
Federal | (22 | ) | (86 | ) | 83 | |||||||
State | (4 | ) | 19 | (43 | ) | |||||||
Foreign | (50 | ) | (20 | ) | (19 | ) | ||||||
Total deferred provision (benefit) | (76 | ) | (87 | ) | 21 | |||||||
Total provision | $ | 427 | $ | 184 | $ | 664 | ||||||
Significant components of deferred tax assets and liabilities | Significant components of our deferred tax assets and liabilities were as follows (in millions): | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Deferred income tax assets: | ||||||||||||
NOL and credit carryforwards | $ | 588 | $ | 1,017 | ||||||||
Expense accruals | 730 | 697 | ||||||||||
Expenses capitalized for tax | 221 | 196 | ||||||||||
Stock-based compensation | 206 | 211 | ||||||||||
Other | 191 | 144 | ||||||||||
Total deferred income tax assets | 1,936 | 2,265 | ||||||||||
Valuation allowance | (336 | ) | (314 | ) | ||||||||
Net deferred income tax assets | 1,600 | 1,951 | ||||||||||
Deferred income tax liabilities: | ||||||||||||
Acquired intangibles | (4,089 | ) | (4,430 | ) | ||||||||
Other | (232 | ) | (263 | ) | ||||||||
Total deferred income tax liabilities | (4,321 | ) | (4,693 | ) | ||||||||
Total deferred income taxes, net | $ | (2,721 | ) | $ | (2,742 | ) | ||||||
Reconciliation of total gross amounts of unrecognized tax benefits (excluding interest, penalties, foreign tax credits and the federal tax benefit of state taxes related to unrecognized tax benefits) | The reconciliations of the total gross amounts of UTBs (excluding interest, penalties, foreign tax credits and the federal tax benefit of state taxes related to UTBs) were as follows (in millions): | |||||||||||
During the years ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Balance at beginning of year | $ | 1,415 | $ | 1,200 | $ | 975 | ||||||
Additions based on tax positions related to the current year | 379 | 335 | 300 | |||||||||
Additions based on tax positions related to prior years | 37 | 96 | 5 | |||||||||
Reductions for tax positions of prior years | (45 | ) | (192 | ) | (50 | ) | ||||||
Reductions for expiration of statute of limitations | (12 | ) | — | — | ||||||||
Settlements | (2 | ) | (24 | ) | (30 | ) | ||||||
Balance at end of year | $ | 1,772 | $ | 1,415 | $ | 1,200 | ||||||
Reconciliation between the federal statutory tax rate and effective tax rate | The reconciliations between the federal statutory tax rate applied to income before income taxes and our effective tax rate were as follows: | |||||||||||
Years ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Federal statutory tax rate | 35 | % | 35 | % | 35 | % | ||||||
Foreign earnings, including earnings invested indefinitely | (22.4 | )% | (21.3 | )% | (17.8 | )% | ||||||
Credits, Puerto Rico Excise Tax | (4.4 | )% | (4.7 | )% | (5.2 | )% | ||||||
Credits, primarily federal R&D | (1.5 | )% | (3.0 | )% | 0 | % | ||||||
State taxes | 0.7 | % | 0.8 | % | 0.6 | % | ||||||
Audit settlements (federal, state, foreign) | 0 | % | (3.7 | )% | 0.3 | % | ||||||
Other, net | 0.2 | % | 0.4 | % | 0.4 | % | ||||||
Effective tax rate | 7.6 | % | 3.5 | % | 13.3 | % |
Earnings_per_share_Tables
Earnings per share (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
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): | |||||||||||
Years ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Income (Numerator): | ||||||||||||
Net income for basic and diluted EPS | $ | 5,158 | $ | 5,081 | $ | 4,345 | ||||||
Shares (Denominator): | ||||||||||||
Weighted-average shares for basic EPS | 759 | 753 | 775 | |||||||||
Effect of dilutive securities | 11 | 12 | 12 | |||||||||
Weighted-average shares for diluted EPS | 770 | 765 | 787 | |||||||||
Basic EPS | $ | 6.8 | $ | 6.75 | $ | 5.61 | ||||||
Diluted EPS | $ | 6.7 | $ | 6.64 | $ | 5.52 | ||||||
Availableforsale_investments_T
Available-for-sale investments (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
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 December 31, 2014 | Amortized | Gross | Gross | Estimated | |||||||||||||
cost | unrealized | unrealized | fair value | ||||||||||||||
gains | losses | ||||||||||||||||
U.S. Treasury securities | $ | 3,632 | $ | 22 | $ | (8 | ) | $ | 3,646 | ||||||||
Other government-related debt securities: | |||||||||||||||||
U.S. | 530 | 1 | (3 | ) | 528 | ||||||||||||
Foreign and other | 1,572 | 21 | (24 | ) | 1,569 | ||||||||||||
Corporate debt securities: | |||||||||||||||||
Financial | 6,036 | 21 | (16 | ) | 6,041 | ||||||||||||
Industrial | 6,394 | 23 | (66 | ) | 6,351 | ||||||||||||
Other | 650 | 3 | (4 | ) | 649 | ||||||||||||
Residential mortgage-backed securities | 1,708 | 4 | (10 | ) | 1,702 | ||||||||||||
Other mortgage- and asset-backed securities | 1,837 | — | (41 | ) | 1,796 | ||||||||||||
Money market mutual funds | 3,004 | — | — | 3,004 | |||||||||||||
Other short-term interest-bearing securities | 1,302 | — | — | 1,302 | |||||||||||||
Total interest-bearing securities | 26,665 | 95 | (172 | ) | 26,588 | ||||||||||||
Equity securities | 98 | 48 | (2 | ) | 144 | ||||||||||||
Total available-for-sale investments | $ | 26,763 | $ | 143 | $ | (174 | ) | $ | 26,732 | ||||||||
Type of security as of December 31, 2013 | Amortized | Gross | Gross | Estimated | |||||||||||||
cost | unrealized | unrealized | fair value | ||||||||||||||
gains | losses | ||||||||||||||||
U.S. Treasury securities | $ | 4,737 | $ | 2 | $ | (9 | ) | $ | 4,730 | ||||||||
Other government-related debt securities: | |||||||||||||||||
U.S. | 1,087 | — | (8 | ) | 1,079 | ||||||||||||
Foreign and other | 1,574 | 13 | (41 | ) | 1,546 | ||||||||||||
Corporate debt securities: | |||||||||||||||||
Financial | 3,667 | 28 | (19 | ) | 3,676 | ||||||||||||
Industrial | 3,745 | 36 | (21 | ) | 3,760 | ||||||||||||
Other | 388 | 4 | (2 | ) | 390 | ||||||||||||
Residential mortgage-backed securities | 1,478 | 3 | (21 | ) | 1,460 | ||||||||||||
Other mortgage- and asset-backed securities | 1,555 | 1 | (45 | ) | 1,511 | ||||||||||||
Money market mutual funds | 3,366 | — | — | 3,366 | |||||||||||||
Other short-term interest-bearing securities | 750 | — | — | 750 | |||||||||||||
Total interest-bearing securities | 22,347 | 87 | (166 | ) | 22,268 | ||||||||||||
Equity securities | 85 | 10 | — | 95 | |||||||||||||
Total available-for-sale investments | $ | 22,432 | $ | 97 | $ | (166 | ) | $ | 22,363 | ||||||||
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 Consolidated Balance Sheets were as follows (in millions): | ||||||||||||||||
December 31, | |||||||||||||||||
Classification in the Consolidated Balance Sheets | 2014 | 2013 | |||||||||||||||
Cash and cash equivalents | $ | 3,293 | $ | 3,266 | |||||||||||||
Marketable securities | 23,295 | 15,596 | |||||||||||||||
Other assets — noncurrent | 144 | 95 | |||||||||||||||
Restricted investments | — | 3,406 | |||||||||||||||
Total available-for-sale investments | $ | 26,732 | $ | 22,363 | |||||||||||||
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): | ||||||||||||||||
December 31, | |||||||||||||||||
Contractual maturity | 2014 | 2013 | |||||||||||||||
Maturing in one year or less | $ | 4,936 | $ | 6,799 | |||||||||||||
Maturing after one year through three years | 6,829 | 4,785 | |||||||||||||||
Maturing after three years through five years | 7,840 | 6,057 | |||||||||||||||
Maturing after five years through ten years | 3,267 | 1,656 | |||||||||||||||
Maturing after ten years | 218 | — | |||||||||||||||
Mortgage- and asset-backed securities | 3,498 | 2,971 | |||||||||||||||
Total interest-bearing securities | $ | 26,588 | $ | 22,268 | |||||||||||||
Available-for-sale securities, continuous unrealized loss position, fair value | The unrealized losses on available-for-sale investments and their related fair values were as follows (in millions): | ||||||||||||||||
Less than 12 months | 12 months or greater | ||||||||||||||||
Type of security as of December 31, 2014 | Fair value | Unrealized losses | Fair value | Unrealized losses | |||||||||||||
U.S. Treasury securities | $ | 1,770 | $ | (7 | ) | $ | 171 | $ | (1 | ) | |||||||
Other government-related debt securities: | |||||||||||||||||
U.S. | 160 | — | 178 | (3 | ) | ||||||||||||
Foreign and other | 514 | (14 | ) | 159 | (10 | ) | |||||||||||
Corporate debt securities: | |||||||||||||||||
Financial | 3,150 | (14 | ) | 158 | (2 | ) | |||||||||||
Industrial | 3,931 | (62 | ) | 222 | (4 | ) | |||||||||||
Other | 354 | (4 | ) | 5 | — | ||||||||||||
Residential mortgage-backed securities | 614 | (4 | ) | 413 | (6 | ) | |||||||||||
Other mortgage- and asset-backed securities | 1,071 | (8 | ) | 561 | (33 | ) | |||||||||||
Equity securities | 78 | (2 | ) | — | — | ||||||||||||
Total | $ | 11,642 | $ | (115 | ) | $ | 1,867 | $ | (59 | ) | |||||||
Less than 12 months | 12 months or greater | ||||||||||||||||
Type of security as of December 31, 2013 | Fair value | Unrealized losses | Fair value | Unrealized losses | |||||||||||||
U.S. Treasury securities | $ | 2,362 | $ | (9 | ) | $ | — | $ | — | ||||||||
Other government-related debt securities: | |||||||||||||||||
U.S. | 789 | (8 | ) | — | — | ||||||||||||
Foreign and other | 986 | (38 | ) | 39 | (3 | ) | |||||||||||
Corporate debt securities: | |||||||||||||||||
Financial | 1,781 | (19 | ) | — | — | ||||||||||||
Industrial | 1,543 | (21 | ) | 1 | — | ||||||||||||
Other | 182 | (2 | ) | — | — | ||||||||||||
Residential mortgage-backed securities | 794 | (14 | ) | 257 | (7 | ) | |||||||||||
Other mortgage- and asset-backed securities | 982 | (29 | ) | 313 | (16 | ) | |||||||||||
Total | $ | 9,419 | $ | (140 | ) | $ | 610 | $ | (26 | ) | |||||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories | Inventories consisted of the following (in millions): | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Raw materials | $ | 198 | $ | 217 | ||||
Work in process | 1,551 | 2,064 | ||||||
Finished goods | 898 | 738 | ||||||
Total inventories | $ | 2,647 | $ | 3,019 | ||||
Property_plant_and_equipment_T
Property, plant and equipment (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||
Property, plant and equipment | Property, plant and equipment consisted of the following (dollar amounts in millions): | ||||||||||
December 31, | |||||||||||
Useful life (in years) | 2014 | 2013 | |||||||||
Land | — | $ | 398 | $ | 408 | ||||||
Buildings and improvements | Oct-40 | 3,612 | 3,467 | ||||||||
Manufacturing equipment | 12-Aug | 1,711 | 2,024 | ||||||||
Laboratory equipment | 12-Aug | 1,240 | 1,165 | ||||||||
Other | 15-Mar | 4,112 | 4,107 | ||||||||
Construction in progress | — | 1,183 | 1,120 | ||||||||
Property, plant and equipment, gross | 12,256 | 12,291 | |||||||||
Less accumulated depreciation and amortization | (7,033 | ) | (6,942 | ) | |||||||
Property, plant and equipment, net | $ | 5,223 | $ | 5,349 | |||||||
Goodwill_and_intangible_assets1
Goodwill and intangible assets (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||
Schedule of goodwill | The changes in the carrying amounts of goodwill were as follows (in millions): | |||||||||||||||||||||||
During the years ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Beginning balance | $ | 14,968 | $ | 12,662 | ||||||||||||||||||||
Goodwill related to acquisitions of businesses (1) | (114 | ) | 2,397 | |||||||||||||||||||||
Currency translation and other adjustments | (66 | ) | (91 | ) | ||||||||||||||||||||
Ending balance | $ | 14,788 | $ | 14,968 | ||||||||||||||||||||
Schedule of identifiable intangible assets | Identifiable intangible assets consisted of the following (in millions): | |||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Gross | Accumulated | Intangible | Gross | Accumulated | Intangible | |||||||||||||||||||
carrying | amortization | assets, net | carrying | amortization | assets, net | |||||||||||||||||||
amount | amount | |||||||||||||||||||||||
Finite-lived intangible assets: | ||||||||||||||||||||||||
Developed product technology rights | $ | 10,826 | $ | (4,155 | ) | $ | 6,671 | $ | 10,130 | $ | (3,347 | ) | $ | 6,783 | ||||||||||
Licensing rights | 3,236 | (696 | ) | 2,540 | 3,241 | (366 | ) | 2,875 | ||||||||||||||||
R&D technology rights | 1,167 | (569 | ) | 598 | 1,207 | (496 | ) | 711 | ||||||||||||||||
Marketing-related rights | 1,241 | (512 | ) | 729 | 619 | (366 | ) | 253 | ||||||||||||||||
Total finite-lived intangible assets | 16,470 | (5,932 | ) | 10,538 | 15,197 | (4,575 | ) | 10,622 | ||||||||||||||||
Indefinite-lived intangible assets: | ||||||||||||||||||||||||
IPR&D | 2,155 | — | 2,155 | 2,640 | — | 2,640 | ||||||||||||||||||
Total identifiable intangible assets | $ | 18,625 | $ | (5,932 | ) | $ | 12,693 | $ | 17,837 | $ | (4,575 | ) | $ | 13,262 | ||||||||||
Accrued_liabilities_Tables
Accrued liabilities (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Accrued liabilities | Accrued liabilities consisted of the following (in millions): | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Sales deductions | $ | 1,379 | $ | 1,248 | ||||
Employee compensation and benefits | 920 | 1,003 | ||||||
Clinical development costs | 445 | 522 | ||||||
Dividends payable | 601 | 460 | ||||||
Sales returns reserve | 361 | 295 | ||||||
Other | 1,590 | 1,127 | ||||||
Total accrued liabilities | $ | 5,296 | $ | 4,655 | ||||
Financing_arrangements_Tables
Financing arrangements (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
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): | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
1.875% notes due 2014 (1.875% 2014 Notes) | $ | — | $ | 1,000 | ||||
4.85% notes due 2014 (4.85% 2014 Notes) | — | 1,000 | ||||||
2.30% notes due 2016 (2.30% 2016 Notes) | 749 | 749 | ||||||
2.50% notes due 2016 (2.50% 2016 Notes) | 1,000 | 999 | ||||||
Floating Rate Notes due 2017 | 600 | — | ||||||
1.25% notes due 2017 (1.25% 2017 Notes) | 849 | — | ||||||
2.125% notes due 2017 (2.125% 2017 Notes) | 1,249 | 1,248 | ||||||
5.85% notes due 2017 (5.85% 2017 Notes) | 1,100 | 1,099 | ||||||
6.15% notes due 2018 (6.15% 2018 Notes) | 500 | 500 | ||||||
Master Repurchase Agreement obligation due 2018 | — | 3,100 | ||||||
Term Loan due 2018 | 4,375 | 4,875 | ||||||
4.375% euro-denominated notes due 2018 (4.375% 2018 euro Notes) | 668 | 751 | ||||||
Floating Rate Notes due 2019 | 250 | — | ||||||
2.20% notes due 2019 (2.20% 2019 Notes) | 1,398 | — | ||||||
5.70% notes due 2019 (5.70% 2019 Notes) | 999 | 999 | ||||||
2.125% euro-denominated notes due 2019 (2.125% 2019 euro Notes) | 814 | 925 | ||||||
4.50% notes due 2020 (4.50% 2020 Notes) | 300 | 300 | ||||||
3.45% notes due 2020 (3.45% 2020 Notes) | 898 | 898 | ||||||
4.10% notes due 2021 (4.10% 2021 Notes) | 998 | 998 | ||||||
3.875% notes due 2021 (3.875% 2021 Notes) | 1,747 | 1,746 | ||||||
3.625% notes due 2022 (3.625% 2022 Notes) | 747 | 747 | ||||||
3.625% notes due 2024 (3.625% 2024 Notes) | 1,398 | — | ||||||
5.50% pound-sterling-denominated notes due 2026 (5.50% 2026 pound sterling Notes) | 735 | 781 | ||||||
4.00% pound-sterling-denominated notes due 2029 (4.00% 2029 pound sterling Notes) | 1,076 | 1,144 | ||||||
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 | 596 | ||||||
5.15% notes due 2041 (5.15% 2041 Notes) | 2,233 | 2,233 | ||||||
5.65% notes due 2042 (5.65% 2042 Notes) | 1,245 | 1,244 | ||||||
5.375% notes due 2043 (5.375% 2043 Notes) | 1,000 | 1,000 | ||||||
Other notes | 100 | 105 | ||||||
Total debt | 30,715 | 32,128 | ||||||
Less current portion | (500 | ) | (2,505 | ) | ||||
Total noncurrent debt | $ | 30,215 | $ | 29,623 | ||||
Schedule of interest rate derivatives | The effective interest rates on these notes after giving effect to the related interest rate swap contracts and the related notional amounts of the contracts were as follows as of December 31, 2014 (dollar amounts in millions): | |||||||
Originating during year ended December 31, 2014 | ||||||||
Notes | Effective interest rate | Notional amount | ||||||
1.25% 2017 Notes | LIBOR + 0.4% | $ | 850 | |||||
2.20% 2019 Notes | LIBOR + 0.6% | 1,400 | ||||||
$ | 2,250 | |||||||
Originating during year ended December 31, 2013 | ||||||||
Notes | Effective interest rate | Notional amount | ||||||
3.45% 2020 Notes | LIBOR + 1.1% | $ | 900 | |||||
4.10% 2021 Notes | LIBOR + 1.7% | 1,000 | ||||||
3.875% 2021 Notes | LIBOR + 2.0% | 1,750 | ||||||
3.625% 2022 Notes | LIBOR + 1.6% | 750 | ||||||
$ | 4,400 | |||||||
Aggregate contractual maturities of long-term debt obligations | The aggregate contractual maturities of all long-term debt obligations due subsequent to December 31, 2014, are as follows (in millions): | |||||||
Maturity date | Amount | |||||||
2015 | $ | 500 | ||||||
2016 | 2,250 | |||||||
2017 | 4,300 | |||||||
2018 | 4,045 | |||||||
2019 | 3,467 | |||||||
Thereafter | 16,230 | |||||||
Total | $ | 30,792 | ||||||
Stockholders_equity_Tables
Stockholders' equity (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||
Summary of activity under our stock repurchase program | Activity under our stock repurchase program was as follows (in millions): | ||||||||||||||||||||
During the years ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Shares | Dollars | Shares | Dollars | Shares | Dollars | ||||||||||||||||
First quarter | — | $ | — | 9.1 | $ | 771 | 21 | $ | 1,429 | ||||||||||||
Second quarter | — | — | — | — | 17.4 | 1,203 | |||||||||||||||
Third quarter | — | — | — | — | 9.7 | 797 | |||||||||||||||
Fourth quarter | 0.9 | 153 | — | — | 14.2 | 1,233 | |||||||||||||||
Total stock repurchases | 0.9 | $ | 153 | 9.1 | $ | 771 | 62.3 | $ | 4,662 | ||||||||||||
Components of Accumulated Other Comprehensive Income | The components of accumulated other comprehensive income (AOCI) were as follows (in millions): | ||||||||||||||||||||
Foreign | Cash flow | Available-for-sale | Other | AOCI | |||||||||||||||||
currency | hedges | securities | |||||||||||||||||||
translation | |||||||||||||||||||||
Balance as of December 31, 2011 | $ | 21 | $ | 43 | $ | 120 | $ | (13 | ) | $ | 171 | ||||||||||
Foreign currency translation adjustments | (13 | ) | — | — | — | (13 | ) | ||||||||||||||
Unrealized gains (losses) | — | 15 | 233 | (1 | ) | 247 | |||||||||||||||
Reclassification adjustments to income | — | (134 | ) | (132 | ) | — | (266 | ) | |||||||||||||
Income taxes | 4 | 41 | (38 | ) | — | 7 | |||||||||||||||
Balance as of December 31, 2012 | 12 | (35 | ) | 183 | (14 | ) | 146 | ||||||||||||||
Foreign currency translation adjustments | (71 | ) | — | — | — | (71 | ) | ||||||||||||||
Unrealized gains (losses) | — | 88 | (284 | ) | (1 | ) | (197 | ) | |||||||||||||
Reclassification adjustments to income | — | (85 | ) | (75 | ) | — | (160 | ) | |||||||||||||
Other | — | — | — | (2 | ) | (2 | ) | ||||||||||||||
Income taxes | (9 | ) | (1 | ) | 133 | — | 123 | ||||||||||||||
Balance as of December 31, 2013 | (68 | ) | (33 | ) | (43 | ) | (17 | ) | (161 | ) | |||||||||||
Foreign currency translation adjustments | (218 | ) | — | — | — | (218 | ) | ||||||||||||||
Unrealized gains | — | 298 | 37 | 1 | 336 | ||||||||||||||||
Reclassification adjustments to income | — | 203 | 1 | — | 204 | ||||||||||||||||
Other | — | — | — | 1 | 1 | ||||||||||||||||
Income taxes | 22 | (178 | ) | (14 | ) | — | (170 | ) | |||||||||||||
Balance as of December 31, 2014 | $ | (264 | ) | $ | 290 | $ | (19 | ) | $ | (15 | ) | $ | (8 | ) | |||||||
Reclassification out of Accumulated Other Comprehensive Income | The reclassifications out of AOCI to earnings were as follows (in millions): | ||||||||||||||||||||
Amounts reclassified out of AOCI | |||||||||||||||||||||
Components of AOCI | Year ended December 31, 2014 | Year ended December 31, 2013 | Line item affected in the Statements of Income | ||||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||
Foreign currency contract gains | $ | 28 | $ | 4 | Product sales | ||||||||||||||||
Cross-currency swap contract (losses) gains | (230 | ) | 82 | Interest and other income, net | |||||||||||||||||
Forward interest rate contract losses | (1 | ) | (1 | ) | Interest expense, net | ||||||||||||||||
(203 | ) | 85 | Total before income tax | ||||||||||||||||||
74 | (33 | ) | Tax benefit (expense) | ||||||||||||||||||
$ | (129 | ) | $ | 52 | Net of taxes | ||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||
Net realized (losses) gains | $ | (1 | ) | $ | 75 | Interest and other income, net | |||||||||||||||
— | (28 | ) | Tax expense | ||||||||||||||||||
$ | (1 | ) | $ | 47 | Net of taxes | ||||||||||||||||
Fair_value_measurement_Tables
Fair value measurement (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
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): | ||||||||||||||||
Fair value measurement as of December 31, 2014, using: | Quoted prices in | Significant other | Significant | Total | |||||||||||||
active markets for | observable | unobservable | |||||||||||||||
identical assets | inputs | inputs | |||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
Assets: | |||||||||||||||||
Available-for-sale investments: | |||||||||||||||||
U.S. Treasury securities | $ | 3,646 | $ | — | $ | — | $ | 3,646 | |||||||||
Other government-related debt securities: | |||||||||||||||||
U.S. | — | 528 | — | 528 | |||||||||||||
Foreign and other | — | 1,569 | — | 1,569 | |||||||||||||
Corporate debt securities: | |||||||||||||||||
Financial | — | 6,041 | — | 6,041 | |||||||||||||
Industrial | — | 6,351 | — | 6,351 | |||||||||||||
Other | — | 649 | — | 649 | |||||||||||||
Residential mortgage-backed securities | — | 1,702 | — | 1,702 | |||||||||||||
Other mortgage- and asset-backed securities | — | 1,796 | — | 1,796 | |||||||||||||
Money market mutual funds | 3,004 | — | — | 3,004 | |||||||||||||
Other short-term interest bearing securities | — | 1,302 | — | 1,302 | |||||||||||||
Equity securities | 144 | — | — | 144 | |||||||||||||
Derivatives: | |||||||||||||||||
Foreign currency contracts | — | 360 | — | 360 | |||||||||||||
Cross-currency swap contracts | — | 32 | — | 32 | |||||||||||||
Interest rate swap contracts | — | 46 | — | 46 | |||||||||||||
Total assets | $ | 6,794 | $ | 20,376 | $ | — | $ | 27,170 | |||||||||
Liabilities: | |||||||||||||||||
Derivatives: | |||||||||||||||||
Foreign currency contracts | $ | — | $ | 4 | $ | — | $ | 4 | |||||||||
Cross-currency swap contracts | — | 12 | — | 12 | |||||||||||||
Interest rate swap contracts | — | 26 | — | 26 | |||||||||||||
Contingent consideration obligations in connection with a business combination | — | — | 215 | 215 | |||||||||||||
Total liabilities | $ | — | $ | 42 | $ | 215 | $ | 257 | |||||||||
Fair value measurement as of December 31, 2013, using: | Quoted prices in | Significant other | Significant | Total | |||||||||||||
active markets for | observable | unobservable | |||||||||||||||
identical assets | inputs | inputs | |||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
Assets: | |||||||||||||||||
Available-for-sale investments: | |||||||||||||||||
U.S. Treasury securities | $ | 4,730 | $ | — | $ | — | $ | 4,730 | |||||||||
Other government-related debt securities: | |||||||||||||||||
U.S. | — | 1,079 | — | 1,079 | |||||||||||||
Foreign and other | — | 1,546 | — | 1,546 | |||||||||||||
Corporate debt securities: | |||||||||||||||||
Financial | — | 3,676 | — | 3,676 | |||||||||||||
Industrial | — | 3,760 | — | 3,760 | |||||||||||||
Other | — | 390 | — | 390 | |||||||||||||
Residential mortgage-backed securities | — | 1,460 | — | 1,460 | |||||||||||||
Other mortgage- and asset-backed securities | — | 1,511 | — | 1,511 | |||||||||||||
Money market mutual funds | 3,366 | — | — | 3,366 | |||||||||||||
Other short-term interest-bearing securities | — | 750 | — | 750 | |||||||||||||
Equity securities | 95 | — | — | 95 | |||||||||||||
Derivatives: | |||||||||||||||||
Foreign currency contracts | — | 53 | — | 53 | |||||||||||||
Cross-currency swap contracts | — | 193 | — | 193 | |||||||||||||
Total assets | $ | 8,191 | $ | 14,418 | $ | — | $ | 22,609 | |||||||||
Liabilities: | |||||||||||||||||
Derivatives: | |||||||||||||||||
Foreign currency contracts | $ | — | $ | 107 | $ | — | $ | 107 | |||||||||
Cross-currency swap contracts | — | 4 | — | 4 | |||||||||||||
Interest rate swap contracts | — | 161 | — | 161 | |||||||||||||
Contingent consideration obligations in connection with business combinations | — | — | 595 | 595 | |||||||||||||
Total liabilities | $ | — | $ | 272 | $ | 595 | $ | 867 | |||||||||
Change in carrying amounts of contingent consideration obligations | The changes in carrying amounts of contingent consideration obligations were as follows (in millions): | ||||||||||||||||
During the years ended December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Beginning balance | $ | 595 | $ | 221 | |||||||||||||
Additions from Onyx acquisition | — | 261 | |||||||||||||||
Net changes in valuation | (30 | ) | 113 | ||||||||||||||
Agreement with former Proteolix, Inc. shareholders | (225 | ) | — | ||||||||||||||
Payment to former BioVex Group, Inc. shareholders | (125 | ) | — | ||||||||||||||
Ending balance | $ | 215 | $ | 595 | |||||||||||||
Derivative_instruments_Tables
Derivative instruments (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
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 | % | $ | 747 | 6 | % | |||||||
4.00% 2029 pound sterling Notes | £ | 700 | 4 | % | $ | 1,111 | 4.5 | % | |||||||
Effective portion of the unrealized gain (loss) recognized in Other Comprehensive Income for our derivative instruments designated as cash flow hedges | The effective portions of the unrealized gain/(loss) recognized in other comprehensive income for our derivative instruments designated as cash flow hedges were as follows (in millions): | ||||||||||||||
Years ended December 31, | |||||||||||||||
Derivatives in cash flow hedging relationships | 2014 | 2013 | 2012 | ||||||||||||
Foreign currency contracts | $ | 452 | $ | (44 | ) | $ | (63 | ) | |||||||
Cross-currency swap contracts | (154 | ) | 132 | 85 | |||||||||||
Forward interest rate contracts | — | — | (7 | ) | |||||||||||
Total | $ | 298 | $ | 88 | $ | 15 | |||||||||
Location in the 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 locations in the Consolidated Statements of Income and the effective portions of the gain/(loss) reclassified out of AOCI into earnings for our derivative instruments designated as cash flow hedges were as follows (in millions): | ||||||||||||||
Years ended December 31, | |||||||||||||||
Derivatives in cash flow hedging relationships | Statements of Income location | 2014 | 2013 | 2012 | |||||||||||
Foreign currency contracts | Product sales | $ | 28 | $ | 4 | $ | 74 | ||||||||
Cross-currency swap contracts | Interest and other income, net | (230 | ) | 82 | 61 | ||||||||||
Forward interest rate contracts | Interest expense, net | (1 | ) | (1 | ) | (1 | ) | ||||||||
Total | $ | (203 | ) | $ | 85 | $ | 134 | ||||||||
Location in the 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 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): | ||||||||||||||
Years ended December 31, | |||||||||||||||
Derivatives not designated as hedging instruments | Statements of Income location | 2014 | 2013 | 2012 | |||||||||||
Foreign currency contracts | Interest and other income, net | $ | (10 | ) | $ | 15 | $ | 19 | |||||||
Fair values of derivatives included in the Consolidated Balance Sheets | The fair values of derivatives included in the Consolidated Balance Sheets were as follows (in millions): | ||||||||||||||
Derivative assets | Derivative liabilities | ||||||||||||||
31-Dec-14 | 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 | $ | 32 | Accrued liabilities/ Other noncurrent liabilities | $ | 12 | |||||||||
Foreign currency contracts | Other current assets/ Other noncurrent assets | 356 | Accrued liabilities/ Other noncurrent liabilities | — | |||||||||||
Interest rate swap contracts | Other current assets/ Other noncurrent assets | 46 | Accrued liabilities/ Other noncurrent liabilities | 26 | |||||||||||
Total derivatives designated as hedging instruments | 434 | 38 | |||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||
Foreign currency contracts | Other current assets | 4 | Accrued liabilities | 4 | |||||||||||
Total derivatives not designated as hedging instruments | 4 | 4 | |||||||||||||
Total derivatives | $ | 438 | $ | 42 | |||||||||||
Derivative assets | Derivative liabilities | ||||||||||||||
31-Dec-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 | $ | 193 | Accrued liabilities/ Other noncurrent liabilities | $ | 4 | |||||||||
Foreign currency contracts | Other current assets/ Other noncurrent assets | 53 | Accrued liabilities/ Other noncurrent liabilities | 104 | |||||||||||
Interest rate swap contracts | Other current assets/ Other noncurrent assets | — | Accrued liabilities/ Other noncurrent liabilities | 161 | |||||||||||
Total derivatives designated as hedging instruments | 246 | 269 | |||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||
Foreign currency contracts | Other current assets | — | Accrued liabilities | 3 | |||||||||||
Total derivatives not designated as hedging instruments | — | 3 | |||||||||||||
Total derivatives | $ | 246 | $ | 272 | |||||||||||
Contingencies_and_commitments_
Contingencies and commitments (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Minimum future rental commitments under non-cancelable operating leases | The following table summarizes the minimum future rental commitments under non-cancelable operating leases as of December 31, 2014 (in millions): | |||
2015 | $ | 135 | ||
2016 | 168 | |||
2017 | 155 | |||
2018 | 143 | |||
2019 | 139 | |||
Thereafter | 294 | |||
Total minimum operating lease commitments | $ | 1,034 | ||
Segment_information_Segment_in
Segment information Segment information (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Revenues | Revenues were as follows (in millions): | |||||||||||
Years ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Product sales: | ||||||||||||
Neulasta® | $ | 4,596 | $ | 4,392 | $ | 4,092 | ||||||
NEUPOGEN® | 1,159 | 1,398 | 1,260 | |||||||||
ENBREL | 4,688 | 4,551 | 4,236 | |||||||||
XGEVA® | 1,221 | 1,019 | 748 | |||||||||
Prolia® | 1,030 | 744 | 472 | |||||||||
EPOGEN® | 2,031 | 1,953 | 1,941 | |||||||||
Aranesp® | 1,930 | 1,911 | 2,040 | |||||||||
Sensipar®/Mimpara® | 1,158 | 1,089 | 950 | |||||||||
Vectibix® | 505 | 389 | 359 | |||||||||
Nplate® | 469 | 427 | 368 | |||||||||
Kyprolis® | 331 | 73 | — | |||||||||
BLINCYTO™ | 3 | — | — | |||||||||
Other | 206 | 246 | 173 | |||||||||
Total product sales | 19,327 | 18,192 | 16,639 | |||||||||
Other revenues | 736 | 484 | 626 | |||||||||
Total revenues | $ | 20,063 | $ | 18,676 | $ | 17,265 | ||||||
Geographical information with respect to revenues and long-lived assets | Certain geographic information with respect to revenues and long-lived assets (consisting of property, plant and equipment) was as follows (in millions): | |||||||||||
Years ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Revenues: | ||||||||||||
United States | $ | 15,396 | $ | 14,480 | $ | 13,415 | ||||||
Rest of the world (ROW) | 4,667 | 4,196 | 3,850 | |||||||||
Total revenues | $ | 20,063 | $ | 18,676 | $ | 17,265 | ||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Long-lived assets: | ||||||||||||
United States | $ | 2,544 | $ | 2,772 | ||||||||
Puerto Rico | 1,771 | 1,822 | ||||||||||
ROW | 908 | 755 | ||||||||||
Total long-lived assets | $ | 5,223 | $ | 5,349 | ||||||||
Revenues earned from major customers | Certain information with respect to these customers was as follows (dollar amounts in millions): | |||||||||||
Years ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
AmerisourceBergen Corporation: | ||||||||||||
Gross product sales | $ | 9,142 | $ | 8,527 | $ | 7,556 | ||||||
% of total gross revenues | 34 | % | 35 | % | 34 | % | ||||||
% of U.S. gross product sales | 43 | % | 44 | % | 43 | % | ||||||
McKesson Corporation: | ||||||||||||
Gross product sales | $ | 8,011 | $ | 6,440 | $ | 5,898 | ||||||
% of total gross revenues | 30 | % | 27 | % | 27 | % | ||||||
% of U.S. gross product sales | 35 | % | 32 | % | 32 | % | ||||||
Cardinal Health, Inc.: | ||||||||||||
Gross product sales | $ | 3,407 | $ | 3,209 | $ | 3,245 | ||||||
% of total gross revenues | 13 | % | 13 | % | 15 | % | ||||||
% of U.S. gross product sales | 16 | % | 17 | % | 19 | % |
Quarterly_financial_data_unaud1
Quarterly financial data (unaudited) (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Quarterly financial data (unaudited) | ||||||||||||||||
2014 Quarters ended | ||||||||||||||||
(In millions, except per share data) | December 31 | September 30 | June 30 | March 31 | ||||||||||||
Product sales | $ | 5,174 | $ | 4,848 | $ | 4,949 | $ | 4,356 | ||||||||
Gross profit from product sales | 3,991 | 3,780 | 3,868 | 3,266 | ||||||||||||
Net income | 1,294 | 1,244 | 1,547 | 1,073 | ||||||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 1.7 | $ | 1.63 | $ | 2.04 | $ | 1.42 | ||||||||
Diluted | $ | 1.68 | $ | 1.61 | $ | 2.01 | $ | 1.4 | ||||||||
2013 Quarters ended | ||||||||||||||||
(In millions, except per share data) | December 31 | September 30 | June 30 | March 31 | ||||||||||||
Product sales | $ | 4,799 | $ | 4,647 | $ | 4,595 | $ | 4,151 | ||||||||
Gross profit from product sales | 3,770 | 3,859 | 3,810 | 3,407 | ||||||||||||
Net income | 1,021 | 1,368 | 1,258 | 1,434 | ||||||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 1.35 | $ | 1.81 | $ | 1.67 | $ | 1.91 | ||||||||
Diluted | $ | 1.33 | $ | 1.79 | $ | 1.65 | $ | 1.88 | ||||||||
Summary_of_significant_account2
Summary of significant accounting policies (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
segment | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Number of business segment | 1 | ||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Product sales | $5,174 | $4,848 | $4,949 | $4,356 | $4,799 | $4,647 | $4,595 | $4,151 | $19,327 | $18,192 | $16,639 |
Restricted investments | 0 | 3,412 | 0 | 3,412 | |||||||
NEUPOGEN [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Product sales | 1,159 | 1,398 | 1,260 | ||||||||
NEUPOGEN [Member] | U.S. federal government stockpiles [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Product sales | $155 |
Restructuring_and_other_cost_s2
Restructuring and other cost savings initiatives (Details Textual) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2013 |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs and asset impairment charges | $385 | ||
Cost of sales [Member] | Manufacturing operations optimization [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Impairment of fixed assets to be disposed of | 118 | ||
Other operating expense [Member] | Other cost savings initiative [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance and lease termination costs | 175 | 71 | |
Minimum [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected number of positions eliminated | 3,500 | ||
Restructuring expected cost | 935 | ||
Restructuring expected separation cost | 535 | ||
Restructuring expected asset impairments, accelerated depreciation and other related costs | 400 | ||
Maximum [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected number of positions eliminated | 4,000 | ||
Restructuring expected cost | 1,035 | ||
Restructuring expected separation cost | 585 | ||
Restructuring expected asset impairments, accelerated depreciation and other related costs | $450 |
Restructuring_and_other_cost_s3
Restructuring and other cost savings initiatives (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Restructuring Cost and Reserve [Line Items] | |
Separation Costs | $377 |
Asset Impairments | 87 |
Accelerated Depreciation | 55 |
Other | 39 |
Total | 558 |
Cost of sales [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Separation Costs | 0 |
Asset Impairments | 81 |
Accelerated Depreciation | 23 |
Other | 0 |
Total | 104 |
Research and development [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Separation Costs | 0 |
Asset Impairments | 0 |
Accelerated Depreciation | 28 |
Other | 21 |
Total | 49 |
Selling, general and administrative [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Separation Costs | 0 |
Asset Impairments | 0 |
Accelerated Depreciation | 4 |
Other | 5 |
Total | 9 |
Other [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Separation Costs | 377 |
Asset Impairments | 6 |
Accelerated Depreciation | 0 |
Other | 13 |
Total | $396 |
Restructuring_and_other_cost_s4
Restructuring and other cost savings initiatives (Details 1) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Restructuring Reserve [Roll Forward] | |
Restructuring liabilities as of January 1, 2014 | $0 |
Expense | 385 |
Payments | -141 |
Restructuring liabilities as of December 31, 2014 | 244 |
Separation Costs [Member] | |
Restructuring Reserve [Roll Forward] | |
Restructuring liabilities as of January 1, 2014 | 0 |
Expense | 353 |
Payments | -132 |
Restructuring liabilities as of December 31, 2014 | 221 |
Other [Member] | |
Restructuring Reserve [Roll Forward] | |
Restructuring liabilities as of January 1, 2014 | 0 |
Expense | 32 |
Payments | -9 |
Restructuring liabilities as of December 31, 2014 | $23 |
Business_combinations_Details
Business combinations (Details) (Onyx Pharmaceuticals, Inc. [Member], USD $) | 0 Months Ended |
In Millions, unless otherwise specified | Oct. 01, 2013 |
Onyx Pharmaceuticals, Inc. [Member] | |
Business Acquisition [Line Items] | |
Total consideration transferred | $9,517 |
Compensation expense | 197 |
Total cash paid | $9,714 |
Business_combinations_Details_
Business combinations (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 01, 2013 |
In Millions, unless otherwise specified | ||||
Allocation of the total consideration to the acquisition date fair values of assets acquired and liabilities assumed | ||||
Goodwill | $14,788 | $14,968 | $12,662 | |
Onyx Pharmaceuticals, Inc. [Member] | ||||
Allocation of the total consideration to the acquisition date fair values of assets acquired and liabilities assumed | ||||
Cash and cash equivalents | 319 | |||
Marketable securities | 337 | |||
Inventories | 170 | |||
Indefinite-lived intangible assets - IPR&D | 1,180 | |||
Goodwill | 2,402 | 2,402 | ||
Convertible debt | -742 | |||
Assumed contingent consideration | -261 | |||
Deferred income taxes, net | -3,011 | |||
Other assets (liabilities), net | 141 | |||
Total consideration | 9,517 | |||
Onyx Pharmaceuticals, Inc. [Member] | Developed Product Technology Rights [Member] | ||||
Allocation of the total consideration to the acquisition date fair values of assets acquired and liabilities assumed | ||||
Finite-lived intangible assets | 6,190 | |||
Onyx Pharmaceuticals, Inc. [Member] | Licensing Rights [Member] | ||||
Allocation of the total consideration to the acquisition date fair values of assets acquired and liabilities assumed | ||||
Finite-lived intangible assets | $2,792 |
Business_combinations_Details_1
Business combinations (Details 2) (Onyx Pharmaceuticals, Inc. [Member], USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Onyx Pharmaceuticals, Inc. [Member] | ||
Business Acquisition [Line Items] | ||
Pro forma net revenues | $19,141 | $17,616 |
Pro forma net income | $4,848 | $3,700 |
Business_combinations_Details_2
Business combinations (Details 3) (USD $) | 1 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2012 |
Business Acquisition [Line Items] | |||
Goodwill | $14,968 | $14,788 | $12,662 |
Product Rights [Member] | |||
Business Acquisition [Line Items] | |||
Total consideration transferred | 497 | ||
Settlement of preexisting relationship at fair value | -99 | ||
Total consideration transferred to acquire the Product Rights | 398 | ||
Goodwill | 3 | ||
Other assets | 21 | ||
Total consideration | 398 | ||
Product Rights [Member] | Marketing-related Rights [Member] | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets | 363 | ||
Product Rights [Member] | Developed Product Technology Rights [Member] | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets | $11 |
Business_combinations_Details_3
Business combinations (Details 4) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 10, 2012 | Jul. 05, 2012 | Jun. 12, 2012 | Mar. 07, 2012 |
In Millions, unless otherwise specified | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | $14,788 | $14,968 | $12,662 | ||||
deCODE Genetics [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Deferred income taxes, net | -37 | ||||||
Other assets (liabilities), net | -29 | ||||||
Goodwill | 0 | ||||||
Total consideration | 399 | ||||||
deCODE Genetics [Member] | Developed Product Technology Rights [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived intangible assets | 0 | ||||||
deCODE Genetics [Member] | R&D Technology Rights [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived intangible assets | 465 | ||||||
deCODE Genetics [Member] | Marketing-related Rights [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived intangible assets | 0 | ||||||
deCODE Genetics [Member] | IPR&D [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Indefinite-lived intangible assets - IPR&D | 0 | ||||||
Kai Pharmaceuticals [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Deferred income taxes, net | -59 | ||||||
Other assets (liabilities), net | 26 | ||||||
Goodwill | 125 | ||||||
Total consideration | 332 | ||||||
Kai Pharmaceuticals [Member] | Developed Product Technology Rights [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived intangible assets | 0 | ||||||
Kai Pharmaceuticals [Member] | R&D Technology Rights [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived intangible assets | 0 | ||||||
Kai Pharmaceuticals [Member] | Marketing-related Rights [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived intangible assets | 0 | ||||||
Kai Pharmaceuticals [Member] | IPR&D [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Indefinite-lived intangible assets - IPR&D | 240 | ||||||
Mustafa Nevzat Pharmaceuticals [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Deferred income taxes, net | -45 | ||||||
Other assets (liabilities), net | 179 | ||||||
Goodwill | 380 | ||||||
Total consideration | 677 | ||||||
Mustafa Nevzat Pharmaceuticals [Member] | Developed Product Technology Rights [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived intangible assets | 81 | ||||||
Mustafa Nevzat Pharmaceuticals [Member] | R&D Technology Rights [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived intangible assets | 0 | ||||||
Mustafa Nevzat Pharmaceuticals [Member] | Marketing-related Rights [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived intangible assets | 82 | ||||||
Mustafa Nevzat Pharmaceuticals [Member] | IPR&D [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Indefinite-lived intangible assets - IPR&D | 0 | ||||||
Micromet Inc. [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Deferred income taxes, net | -191 | ||||||
Other assets (liabilities), net | 170 | ||||||
Goodwill | 247 | ||||||
Total consideration | 1,146 | ||||||
Micromet Inc. [Member] | Developed Product Technology Rights [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived intangible assets | 0 | ||||||
Micromet Inc. [Member] | R&D Technology Rights [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived intangible assets | 350 | ||||||
Micromet Inc. [Member] | Marketing-related Rights [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived intangible assets | 0 | ||||||
Micromet Inc. [Member] | IPR&D [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Indefinite-lived intangible assets - IPR&D | $570 |
Business_combinations_Details_4
Business combinations (Details Textual) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 0 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 01, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 10, 2012 | Jun. 12, 2012 | Mar. 07, 2012 | |
payment | market | |||||||||
Business Acquisition [Line Items] | ||||||||||
Goodwill | $14,788,000,000 | $14,968,000,000 | $12,662,000,000 | $14,788,000,000 | $14,968,000,000 | $14,968,000,000 | ||||
Intangible asset amortization expense | 1,376,000,000 | 642,000,000 | 397,000,000 | |||||||
Onyx Pharmaceuticals, Inc. [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Number of partnered oncology assets | 3 | |||||||||
Cash payments | 9,517,000,000 | |||||||||
Reduction in goodwill | 124,000,000 | |||||||||
Increase in deferred income taxes | 93,000,000 | |||||||||
Decrease in inventory | 80,000,000 | |||||||||
Number of separate milestone payments | 1 | 2 | 1 | |||||||
Contingent consideration obligations | 150,000,000 | |||||||||
Settlement of contingent consideration | 225,000,000 | |||||||||
Goodwill | 2,402,000,000 | 2,402,000,000 | 2,402,000,000 | 2,402,000,000 | ||||||
Onyx Pharmaceuticals, Inc. [Member] | Pro Forma [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Share-based compensation expense | 197,000,000 | |||||||||
Intangible asset amortization expense | 488,000,000 | 412,000,000 | ||||||||
Onyx Pharmaceuticals, Inc. [Member] | Selling, general and administrative [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Share-based compensation expense | 197,000,000 | |||||||||
Transaction related expenses | 36,000,000 | |||||||||
Onyx Pharmaceuticals, Inc. [Member] | Developed Product Technology Rights [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Increase in developed product technology rights | 280,000,000 | |||||||||
Finite-lived intangible assets, estimated useful life (in years) | 12 years | |||||||||
Onyx Pharmaceuticals, Inc. [Member] | Licensing Rights [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Finite-lived intangible assets, estimated useful life (in years) | 10 years | |||||||||
Onyx Pharmaceuticals, Inc. [Member] | Common Stockholders [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash payments | 9,186,000,000 | |||||||||
Onyx Pharmaceuticals, Inc. [Member] | Equity Award Holders for Services Rendered Prior to Date of Acquisition [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash payments | 331,000,000 | |||||||||
Product Rights [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Goodwill | 3,000,000 | 3,000,000 | 3,000,000 | |||||||
Number of markets holding acquired licenses | 100 | |||||||||
Total consideration transferred | 497,000,000 | |||||||||
Settlement of preexisting relationship at fair value | 99,000,000 | |||||||||
Product Rights [Member] | Cost of sales [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Settlement of preexisting relationship at fair value | 99,000,000 | |||||||||
Product Rights [Member] | Developed Product Technology Rights [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Finite-lived intangible assets, estimated useful life (in years) | 3 years 6 months | |||||||||
Product Rights [Member] | Marketing-related Rights [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Finite-lived intangible assets, estimated useful life (in years) | 5 years | |||||||||
deCODE Genetics [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Finite-lived intangible assets, estimated useful life (in years) | 10 years | |||||||||
Goodwill | 0 | |||||||||
Mustafa Nevzat Pharmaceuticals [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Finite-lived intangible assets, estimated useful life (in years) | 8 years | |||||||||
Goodwill | 380,000,000 | |||||||||
Micromet Inc. [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Goodwill | 247,000,000 | |||||||||
Micromet Inc. [Member] | Developed Product Technology Rights [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Finite-lived intangible assets, estimated useful life (in years) | 10 years | |||||||||
Micromet Inc. [Member] | In Process Research and Development [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Impairment charge | 46,000,000 | |||||||||
Micromet Inc. [Member] | In Process Research and Development [Member] | Other operating expense [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Impairment charge | $46,000,000 | $19,000,000 |
Stockbased_compensation_Detail
Stock-based compensation (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Components of stock-based compensation expense [Abstract] | |||
Total stock-based compensation expense, pre-tax | $408 | $403 | $362 |
Tax benefit from stock-based compensation expense | -152 | -149 | -134 |
Total stock-based compensation expense, net of tax | 256 | 254 | 228 |
RSUs [Member] | |||
Components of stock-based compensation expense [Abstract] | |||
Total stock-based compensation expense, pre-tax | 219 | 206 | 186 |
Performance units [Member] | |||
Components of stock-based compensation expense [Abstract] | |||
Total stock-based compensation expense, pre-tax | 171 | 163 | 117 |
Stock options [Member] | |||
Components of stock-based compensation expense [Abstract] | |||
Total stock-based compensation expense, pre-tax | $18 | $34 | $59 |
Stockbased_compensation_Detail1
Stock-based compensation (Details 1) (Restricted Stock Units [Member], USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restricted Stock Units [Member] | |||
Restricted Stock Units, Nonvested, Number of Shares [Roll Forward] | |||
Balance nonvested at beginning of period (in shares) | 8.8 | ||
Granted (in shares) | 2.3 | ||
Vested (in shares) | -3 | ||
Forfeited (in shares) | -1 | ||
Balance nonvested at end of period (in shares) | 7.1 | 8.8 | |
Restricted Stock Units, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Balance nonvested at beginning of period (in usd per share) | $76.75 | ||
Granted (in usd per share) | $115.63 | $107.01 | $72.99 |
Vested (in usd per share) | $63.36 | ||
Forfeited (in usd per share) | $90.77 | ||
Balance nonvested at end of period (in usd per share) | $92.88 | $76.75 |
Stockbased_compensation_Detail2
Stock-based compensation (Details 3) (Stock Options [Member], USD $) | 12 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 |
Stock Options [Member] | |
Stock Options [Roll Forward] | |
Balance unexercised at beginning of period (in shares) | 7.4 |
Granted (in shares) | 0 |
Exercised (in shares) | -3.1 |
Expired/forfeited (in shares) | -0.2 |
Balance unexercised at end of period (in shares) | 4.1 |
Stock Options, Weighted Average Exercise Price [Roll Forward] | |
Balance unexercised at beginning of period (in usd per share) | $54.91 |
Granted (in usd per share) | $0 |
Exercised (in usd per share) | $55.42 |
Expired/forfeited (in usd per share) | $56.18 |
Balance unexercised at end of period (in shares) | $54.48 |
Stock options information [Abstract] | |
Vested or expected to vest (in shares) | 4.1 |
Exercisable (in shares) | 3.5 |
Weighted-average exercise price, vested or expected to vest (in usd per share) | $54.48 |
Weighted-average exercise price, exercisable (in usd per share) | $54.45 |
Weighted-average remaining contractual life (years), unexercised | 4 years 2 months 12 days |
Weighted-average remaining contractual life (years), vested or expected to vest | 4 years 2 months 12 days |
Weighted-average remaining contractual life (years), exercisable | 3 years 10 months 24 days |
Aggregate intrinsic value, unexercised | $432 |
Aggregate intrinsic value, vested or expected to vest | 432 |
Aggregate intrinsic value, exercisable | $371 |
Stockbased_compensation_Detail3
Stock-based compensation (Details 4) (Performance Units [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Performance Units [Member] | |||
Weighted-average assumptions and resulting weighted-average grant date fair values [Abstract] | |||
Closing price of our common stock on grant date (in usd per share) | $112.43 | $92.03 | $68.75 |
Volatility | 23.80% | 21.00% | 22.90% |
Risk-free interest rate | 0.80% | 0.40% | 0.50% |
Fair value of unit (in usd per share) | $104.47 | $102.73 | $78.21 |
Stockbased_compensation_Detail4
Stock-based compensation (Details Textual) (USD $) | 12 Months Ended | ||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2009 | 22-May-13 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Amount by which the pool of available shares will be reduced for each stock option granted | 1 | 1 | 1 | ||
Number of shares added back for tax withholding on full value awards | 1.9 | ||||
The amount of common stock available under the plan for future grants and/or issuances (in shares) | 52,000,000 | ||||
Description of vesting of restricted stock units and stock options | Stock options and RSUs granted on and after April 25, 2011, generally vest in approximately equal amounts on the second, third and fourth anniversaries of the grant date. | ||||
Number of common shares issued for each performance unit earned | 1 | 1 | 1 | ||
Restricted Stock Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
The number of shares by which the pool of available shares will be reduced for other types of awards granted | 1.9 | ||||
Weighted average grant date fair value, granted (in usd per share) | 115.63 | 107.01 | 72.99 | ||
Total fair value of units that vested during the year | 191 | 145 | 139 | ||
Units outstanding (in shares) | 7,100,000 | 8,800,000 | |||
Units granted (in shares) | 2,300,000 | ||||
Units, vested (in shares) | 3,000,000 | ||||
Weighted average grant date fair value, vested (in usd per share) | 63.36 | ||||
Units, forfeited (in shares) | 1,000,000 | ||||
Weighted average grant date fair value, forfeited (in usd per share) | 90.77 | ||||
Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total intrinsic value of stock options exercised during the year | 228 | 210 | 320 | ||
Actual tax benefits realized from tax deductions from option exercises | 83 | 77 | 117 | ||
Stock Option and Restricted Stock Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total unrecognized compensation cost related to nonvested awards | 357 | ||||
Weighted average number of years over which compensation cost related to nonvested awards is expected to be recognized | 1 year 8 months 12 days | ||||
Performance Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
The number of shares by which the pool of available shares will be reduced for other types of awards granted | 1.9 | ||||
Period over which the grants of equity instruments vest | 3 years | ||||
Weighted-average risk-free interest rate | 0.80% | 0.40% | 0.50% | ||
Weighted average grant date fair value, granted (in usd per share) | 104.47 | 102.73 | 78.21 | ||
Total fair value of units that vested during the year | 587 | 270 | 100 | ||
Total unrecognized compensation cost related to nonvested awards | 133 | ||||
Weighted average number of years over which compensation cost related to nonvested awards is expected to be recognized | 10 months 24 days | ||||
Units outstanding (in shares) | 5,800,000 | 6,600,000 | |||
Weighted average grant date fair value of units, outstanding | 92.66 | 76.95 | |||
Units granted (in shares) | 1,700,000 | ||||
Units, vested (in shares) | 3,700,000 | ||||
Weighted average grant date fair value, vested (in usd per share) | 77.89 | ||||
Units, forfeited (in shares) | 500,000 | ||||
Weighted average grant date fair value, forfeited (in usd per share) | 95.01 | ||||
Granted Prior to April 25, 2011 [Member] | Restricted Stock Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Period over which the grants of equity instruments vest | 4 years | ||||
Granted Prior to April 25, 2011 [Member] | Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Period over which the grants of equity instruments vest | 4 years | ||||
Granted on April 25, 2011 through April 26, 2012 [Member] | Restricted Stock Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expected dividend yield | 2.00% | ||||
Weighted-average risk-free interest rate | 1.00% | ||||
Granted on and After April 26, 2010 [Member] | Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expiration period of stock options from date of grant | 10 years | ||||
Granted Prior to April 26, 2010 [Member] | Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expiration period of stock options from date of grant | 7 years | ||||
the Amended 2009 Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares of common stock authorized for issuance | 104,000,000 |
Income_taxes_Details
Income taxes (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current provision: | |||
Federal | $251 | $54 | $438 |
State | 58 | 26 | 47 |
Foreign | 194 | 191 | 158 |
Total current provision | 503 | 271 | 643 |
Deferred provision (benefit): | |||
Federal | -22 | -86 | 83 |
State | -4 | 19 | -43 |
Foreign | -50 | -20 | -19 |
Total deferred provision (benefit) | -76 | -87 | 21 |
Total provision | $427 | $184 | $664 |
Income_taxes_Details_1
Income taxes (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Deferred income tax assets: | ||
NOL and credit carryforwards | $588 | $1,017 |
Expense accruals | 730 | 697 |
Expenses capitalized for tax | 221 | 196 |
Stock-based compensation | 206 | 211 |
Other | 191 | 144 |
Total deferred income tax assets | 1,936 | 2,265 |
Valuation allowance | -336 | -314 |
Net deferred income tax assets | 1,600 | 1,951 |
Deferred income tax liabilities: | ||
Acquired intangibles | -4,089 | -4,430 |
Other | -232 | -263 |
Total deferred income tax liabilities | -4,321 | -4,693 |
Total deferred income taxes, net | ($2,721) | ($2,742) |
Income_taxes_Details_2
Income taxes (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of total gross amounts of unrecognized tax benefits (excluding interest, penalties, foreign tax credits and the federal tax benefit of state taxes related to unrecognized tax benefits) | |||
Balance at beginning of year | $1,415 | $1,200 | $975 |
Additions based on tax positions related to the current year | 379 | 335 | 300 |
Additions based on tax positions related to prior years | 37 | 96 | 5 |
Reductions for tax positions of prior years | -45 | -192 | -50 |
Reductions for expiration of statute of limitations | -12 | 0 | 0 |
Settlements | -2 | -24 | -30 |
Balance at end of year | $1,772 | $1,415 | $1,200 |
Income_taxes_Details_3
Income taxes (Details 3) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Reconciliation between the federal statutory tax rate applied to income before income taxes and effective tax rate [Abstract] | |||
Federal statutory tax rate | 35.00% | 35.00% | 35.00% |
Foreign earnings, including earnings invested indefinitely | -22.40% | -21.30% | -17.80% |
Credits, Puerto Rico Excise Tax | -4.40% | -4.70% | -5.20% |
Credits, primarily federal R&D | -1.50% | -3.00% | 0.00% |
State taxes | 0.70% | 0.80% | 0.60% |
Audit settlements (federal, state, foreign) | 0.00% | -3.70% | 0.30% |
Other, net | 0.20% | 0.40% | 0.40% |
Effective tax rate | 7.60% | 3.50% | 13.30% |
Income_taxes_Details_Textual
Income taxes (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Taxes (Textual) [Abstract] | |||
Increase in valuation allowance for deferred tax assets | $22,000,000 | $41,000,000 | |
Interest and penalties related to unrecognized tax benefits recognized in income tax provision | 35,000,000 | 32,000,000 | 30,000,000 |
Accrued interest and penalties associated with unrecognized tax benefits | 134,000,000 | 99,000,000 | |
Total foreign income before income taxes | 4,100,000,000 | 3,700,000,000 | 3,300,000,000 |
Income taxes paid | 269,000,000 | 321,000,000 | 502,000,000 |
Tax Credit Carryforward [Line Items] | |||
Decrease in unrecognized tax benefits that is reasonably possible within the succeeding twelve months due to potential tax settlements | 70,000,000 | ||
Undistributed earnings of our foreign operations that are intended to be invested indefinitely outside of the United States | 29,300,000,000 | ||
Additional income taxes required to be accrued and paid if earnings of foreign operations that are intended to be indefinitely invested outside of the United States were repatriated | 10,500,000,000 | ||
Research Tax Credit Carryforward [Member] | |||
Tax Credit Carryforward [Line Items] | |||
Tax benefit of the retroactive extension of the 2012 R&D tax credit | 70,000,000 | ||
Puerto Rico Excise Tax [Member] | |||
Excise Tax Rate [Abstract] | |||
Effective excise tax rate for 2012 | 3.75% | ||
Effective excise tax rate for first half of 2013 | 2.75% | ||
Excise tax rate effective July 1, 2013 through 2017 | 4.00% | ||
Federal [Member] | |||
Tax Credit Carryforward [Line Items] | |||
Tax credit carryforwards available to reduce income taxes | 39,000,000 | ||
NOL carryforwards available to reduce income taxes | 97,000,000 | ||
State [Member] | |||
Tax Credit Carryforward [Line Items] | |||
Tax credit carryforwards available to reduce income taxes | 341,000,000 | ||
NOL carryforwards available to reduce income taxes | 697,000,000 | ||
Foreign [Member] | |||
Tax Credit Carryforward [Line Items] | |||
NOL carryforwards available to reduce income taxes | 1,300,000,000 | ||
Valuation Allowance, Tax Credit Carryforward [Member] | Federal [Member] | |||
Tax Credit Carryforward [Line Items] | |||
Tax credit carryforwards available to reduce income taxes | 21,000,000 | ||
Valuation Allowance, Tax Credit Carryforward [Member] | State [Member] | |||
Tax Credit Carryforward [Line Items] | |||
Tax credit carryforwards available to reduce income taxes | 222,000,000 | ||
Valuation Allowance, Operating Loss Carryforwards [Member] | Federal [Member] | |||
Tax Credit Carryforward [Line Items] | |||
NOL carryforwards available to reduce income taxes | 83,000,000 | ||
Valuation Allowance, Operating Loss Carryforwards [Member] | State [Member] | |||
Tax Credit Carryforward [Line Items] | |||
NOL carryforwards available to reduce income taxes | 421,000,000 | ||
Valuation Allowance, Operating Loss Carryforwards [Member] | Foreign [Member] | |||
Tax Credit Carryforward [Line Items] | |||
NOL carryforwards available to reduce income taxes | $770,000,000 |
Earnings_per_share_Details
Earnings per share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income (Numerator): | |||||||||||
Net income for basic and diluted EPS | $1,294 | $1,244 | $1,547 | $1,073 | $1,021 | $1,368 | $1,258 | $1,434 | $5,158 | $5,081 | $4,345 |
Shares (Denominator): | |||||||||||
Weighted-average shares for basic EPS | 759 | 753 | 775 | ||||||||
Effect of dilutive securities (in shares) | 11 | 12 | 12 | ||||||||
Weighted-average shares for diluted EPS | 770 | 765 | 787 | ||||||||
Basic EPS (in usd per share) | $1.70 | $1.63 | $2.04 | $1.42 | $1.35 | $1.81 | $1.67 | $1.91 | $6.80 | $6.75 | $5.61 |
Diluted EPS (in usd per share) | $1.68 | $1.61 | $2.01 | $1.40 | $1.33 | $1.79 | $1.65 | $1.88 | $6.70 | $6.64 | $5.52 |
Earnings_per_share_Details_Tex
Earnings per share (Details Textual) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2012 |
Earnings Per Share [Abstract] | |
Antidilutive securities excluded from computation of diluted earnings per share, amount | 6 |
Collaborative_arrangements_Tex
Collaborative arrangements (Textuals) (Details) (Pfizer Inc [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Period required to pay percentage of net sales, after expiration of agreement in years | 3 years | ||
Maximum percentage of annual net ENBREL sales payable to Pfizer for three years after expiration of the collaboration agreement in the fourth quarter of 2013 | 12.00% | ||
Minimum percentage of annual net ENBREL sales payable to Pfizer for three years after expiration of the collaboration agreement in the fourth quarter of 2013 | 10.00% | ||
Selling, general and administrative [Member] | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Profit share and royalty expense, net of partner portion of selling and marketing expense | $1,300,000,000 | $1,300,000,000 | |
Royalty expense | $509,000,000 |
Collaborative_arrangements_Tex1
Collaborative arrangements (Textuals 1) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||
Product sales | $5,174 | $4,848 | $4,949 | $4,356 | $4,799 | $4,647 | $4,595 | $4,151 | $19,327 | $18,192 | $16,639 |
Glaxo Group Limited [Member] | |||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||
Product sales | $67 | $219 | $139 |
Collaborative_arrangements_Tex2
Collaborative arrangements (Textuals 2) (Details) (Astrazeneca Plc. [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Percentage of related development costs for the 2012-2014 period that were funded by partner | 65.00% | ||
Other revenues [Member] | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Milestone payments received | $50 | ||
Research and development expense [Member] | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Cost recoveries | $110 | $194 | $28 |
Collaborative_arrangements_Tex3
Collaborative arrangements (Textuals 3) (Details) (Takeda Pharmaceutical Company Limited [Member], USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2008 | Dec. 31, 2014 |
Molecule | ||||
Research and development expense [Member] | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Cost recoveries | $34 | $74 | ||
Other revenues [Member] | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Deferred revenue as of the date of modification of the original arrangement | 230 | |||
Japanese Market Products [Member] | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Number of molecules developed and commercialized as per collaborations | 12 | |||
Vectibix [Member] | Other revenues [Member] | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Royalties received on sales | $18 | $21 | $17 |
Collaborative_arrangements_Tex4
Collaborative arrangements (Textuals 4) (Details) (UCB [Member], Research and development expense [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
UCB [Member] | Research and development expense [Member] | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Cost recoveries | $96 | $66 | $71 |
Collaborative_arrangements_Tex5
Collaborative arrangements (Textuals 5) (Details) (Bayer HealthCare Pharmaceuticals Inc. [Member], Nexavar [Member], USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 |
country | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Number of countries product is marketed and sold | 100 | |
Percentage of development costs funded by Company | 50.00% | |
Percentage of net profits after deducting certain partner related costs | 50.00% | |
Collaboration, net R&D expenses | $13 | $40 |
Other revenues [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Collaboration profit | $78 | $324 |
Related_party_transactions_Det
Related party transactions (Details Textual) (Kirin-Amgen [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Related Party Transaction [Line Items] | |||
Ownership interest (in percent) in related party | 50.00% | ||
Payments that may be received upon the achievement of various substantive success-based development and regulatory approval milestones | $85,000,000 | ||
Noncurrent Other Assets [Member] | |||
Related Party Transaction [Line Items] | |||
Approximate carrying value of the company's equity method investment | 400,000,000 | 300,000,000 | |
Accrued Liabilities [Member] | |||
Related Party Transaction [Line Items] | |||
Amount due to related party | 17,000,000 | ||
Other Current Assets [Member] | |||
Related Party Transaction [Line Items] | |||
Amount due from related party | 22,000,000 | ||
Selling, general and administrative [Member] | |||
Related Party Transaction [Line Items] | |||
Company's share of profits (losses) of related party | 30,000,000 | -6,000,000 | -24,000,000 |
Cost of sales [Member] | |||
Related Party Transaction [Line Items] | |||
Royalties earned by related party from Amgen | 301,000,000 | 272,000,000 | 274,000,000 |
Other revenues [Member] | |||
Related Party Transaction [Line Items] | |||
Revenues earned by Amgen from related party | 119,000,000 | 117,000,000 | 115,000,000 |
Research and development expense [Member] | |||
Related Party Transaction [Line Items] | |||
Cost recoveries by Amgen from related party | $108,000,000 | $218,000,000 | $142,000,000 |
Availableforsale_investments_D
Available-for-sale investments (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
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 | $26,763 | $22,432 |
Gross unrealized gains | 143 | 97 |
Gross unrealized losses | -174 | -166 |
Total available-for-sale investments, fair value | 26,732 | 22,363 |
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 | 3,632 | 4,737 |
Gross unrealized gains | 22 | 2 |
Gross unrealized losses | -8 | -9 |
Total available-for-sale investments, fair value | 3,646 | 4,730 |
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 | 530 | 1,087 |
Gross unrealized gains | 1 | 0 |
Gross unrealized losses | -3 | -8 |
Total available-for-sale investments, fair value | 528 | 1,079 |
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 | 1,572 | 1,574 |
Gross unrealized gains | 21 | 13 |
Gross unrealized losses | -24 | -41 |
Total available-for-sale investments, fair value | 1,569 | 1,546 |
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 | 6,036 | 3,667 |
Gross unrealized gains | 21 | 28 |
Gross unrealized losses | -16 | -19 |
Total available-for-sale investments, fair value | 6,041 | 3,676 |
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 | 6,394 | 3,745 |
Gross unrealized gains | 23 | 36 |
Gross unrealized losses | -66 | -21 |
Total available-for-sale investments, fair value | 6,351 | 3,760 |
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 | 650 | 388 |
Gross unrealized gains | 3 | 4 |
Gross unrealized losses | -4 | -2 |
Total available-for-sale investments, fair value | 649 | 390 |
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 | 1,708 | 1,478 |
Gross unrealized gains | 4 | 3 |
Gross unrealized losses | -10 | -21 |
Total available-for-sale investments, fair value | 1,702 | 1,460 |
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 | 1,837 | 1,555 |
Gross unrealized gains | 0 | 1 |
Gross unrealized losses | -41 | -45 |
Total available-for-sale investments, fair value | 1,796 | 1,511 |
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 | 3,004 | 3,366 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Total available-for-sale investments, fair value | 3,004 | 3,366 |
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 | 1,302 | 750 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Total available-for-sale investments, fair value | 1,302 | 750 |
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 | 26,665 | 22,347 |
Gross unrealized gains | 95 | 87 |
Gross unrealized losses | -172 | -166 |
Total available-for-sale investments, fair value | 26,588 | 22,268 |
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 | 98 | 85 |
Gross unrealized gains | 48 | 10 |
Gross unrealized losses | -2 | 0 |
Total available-for-sale investments, fair value | $144 | $95 |
Availableforsale_investments_D1
Available-for-sale investments (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 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 | $3,731 | $3,805 | $3,257 | $6,946 |
Marketable securities | 23,295 | 15,596 | ||
Other assets - noncurrent | 1,592 | 1,767 | ||
Restricted investments | 0 | 3,412 | ||
Total available-for-sale investments, fair value | 26,732 | 22,363 | ||
Available-for-sale investments [Member] | ||||
Fair values of available-for-sale investments by classification in the Consolidated Balance Sheets | ||||
Cash and cash equivalents | 3,293 | 3,266 | ||
Other assets - noncurrent | 144 | 95 | ||
Available-for-sale investments [Member] | ATL Holdings [Member] | ||||
Fair values of available-for-sale investments by classification in the Consolidated Balance Sheets | ||||
Restricted investments | $0 | $3,406 |
Availableforsale_investments_D2
Available-for-sale investments (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair values of available-for-sale debt security investments by contractual maturity | ||
Maturing in one year or less | $4,936 | $6,799 |
Maturing after one year through three years | 6,829 | 4,785 |
Maturing after three years through five years | 7,840 | 6,057 |
Maturing after five years through ten years | 3,267 | 1,656 |
Maturing after ten years | 218 | 0 |
Mortgage- and asset-backed securities | 3,498 | 2,971 |
Total available-for-sale investments, fair value | 26,732 | 22,363 |
Total interest-bearing securities [Member] | ||
Fair values of available-for-sale debt security investments by contractual maturity | ||
Total available-for-sale investments, fair value | $26,588 | $22,268 |
Availableforsale_investments_D3
Available-for-sale investments (Details 3) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair value | $11,642 | $9,419 |
Less than 12 months, Unrealized losses | -115 | -140 |
12 months or greater, Fair value | 1,867 | 610 |
12 months or greater, Unrealized losses | -59 | -26 |
U.S. Treasury securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair value | 1,770 | 2,362 |
Less than 12 months, Unrealized losses | -7 | -9 |
12 months or greater, Fair value | 171 | 0 |
12 months or greater, Unrealized losses | -1 | 0 |
Other government-related debt securities - U.S. [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair value | 160 | 789 |
Less than 12 months, Unrealized losses | 0 | -8 |
12 months or greater, Fair value | 178 | 0 |
12 months or greater, Unrealized losses | -3 | 0 |
Other government-related debt securities - Foreign and other [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair value | 514 | 986 |
Less than 12 months, Unrealized losses | -14 | -38 |
12 months or greater, Fair value | 159 | 39 |
12 months or greater, Unrealized losses | -10 | -3 |
Corporate debt securities - Financial [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair value | 3,150 | 1,781 |
Less than 12 months, Unrealized losses | -14 | -19 |
12 months or greater, Fair value | 158 | 0 |
12 months or greater, Unrealized losses | -2 | 0 |
Corporate debt securities - Industrial [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair value | 3,931 | 1,543 |
Less than 12 months, Unrealized losses | -62 | -21 |
12 months or greater, Fair value | 222 | 1 |
12 months or greater, Unrealized losses | -4 | 0 |
Corporate debt securities - Other [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair value | 354 | 182 |
Less than 12 months, Unrealized losses | -4 | -2 |
12 months or greater, Fair value | 5 | 0 |
12 months or greater, Unrealized losses | 0 | 0 |
Residential mortgage-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair value | 614 | 794 |
Less than 12 months, Unrealized losses | -4 | -14 |
12 months or greater, Fair value | 413 | 257 |
12 months or greater, Unrealized losses | -6 | -7 |
Other mortgage- and asset-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair value | 1,071 | 982 |
Less than 12 months, Unrealized losses | -8 | -29 |
12 months or greater, Fair value | 561 | 313 |
12 months or greater, Unrealized losses | -33 | -16 |
Equity securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair value | 78 | |
Less than 12 months, Unrealized losses | -2 | |
12 months or greater, Fair value | 0 | |
12 months or greater, Unrealized losses | $0 |
Availableforsale_investments_D4
Available-for-sale investments (Details Textual) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Available-for-sale investments (Textual) [Abstract] | |||
Cash | $438 | $539 | |
Marketable securities | 23,295 | 15,596 | |
Total realized gains | 149 | 158 | 186 |
Total realized losses | 150 | 83 | 54 |
ATL Holdings [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Interest receivable | 6 | ||
Reclassified to Restricted Investments [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Interest receivable | 4 | ||
Available-for-sale investments (Textual) [Abstract] | |||
Cash | 526 | ||
Marketable securities | $2,881 |
Inventories_Details
Inventories (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventories | ||
Raw materials | $198 | $217 |
Work in process | 1,551 | 2,064 |
Finished goods | 898 | 738 |
Total inventories | $2,647 | $3,019 |
Property_plant_and_equipment_D
Property, plant and equipment (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Property, plant and equipment [Abstract] | ||
Land | 398 | $408 |
Buildings and improvements | 3,612 | 3,467 |
Manufacturing equipment | 1,711 | 2,024 |
Laboratory equipment | 1,240 | 1,165 |
Other | 4,112 | 4,107 |
Construction in progress | 1,183 | 1,120 |
Property, plant and equipment, gross | 12,256 | 12,291 |
Less accumulated depreciation and amortization | -7,033 | -6,942 |
Property, plant and equipment, net | 5,223 | $5,349 |
Building and Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 10 years | |
Building and Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 40 years | |
Manufacturing Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 8 years | |
Manufacturing Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 12 years | |
Laboratory Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 8 years | |
Laboratory Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 12 years | |
Other [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 3 years | |
Other [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 15 years |
Property_plant_and_equipment_D1
Property, plant and equipment (Details Textual) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization charges associated with property, plant and equipment | $716 | $644 | $689 |
Goodwill_and_intangible_assets2
Goodwill and intangible assets (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Goodwill [Roll Forward] | ||||
Beginning balance | $14,968 | $12,662 | ||
Goodwill related to acquisitions of businesses | -114 | [1] | 2,397 | [1] |
Currency translation and other adjustments | -66 | -91 | ||
Ending balance | $14,788 | $14,968 | ||
[1] | Composed of goodwill recognized on the acquisition dates of business combinations and subsequent adjustments to these amounts resulting from changes to the acquisition date fair values of net assets acquired in the business combinations recorded during their respective measurement periods. |
Goodwill_and_intangible_assets3
Goodwill and intangible assets (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Finite-lived intangible assets: | ||
Gross carrying amount | $16,470 | $15,197 |
Accumulated amortization | -5,932 | -4,575 |
Intangible assets, net | 10,538 | 10,622 |
Indefinite-lived intangible assets: | ||
Identifiable intangible assets | 18,625 | 17,837 |
Accumulated amortization | -5,932 | -4,575 |
Identifiable intangible assets, net | 12,693 | 13,262 |
IPR&D [Member] | ||
Indefinite-lived intangible assets: | ||
Indefinite-lived intangible assets | 2,155 | 2,640 |
Developed Product Technology Rights [Member] | ||
Finite-lived intangible assets: | ||
Gross carrying amount | 10,826 | 10,130 |
Accumulated amortization | -4,155 | -3,347 |
Intangible assets, net | 6,671 | 6,783 |
Licensing Rights [Member] | ||
Finite-lived intangible assets: | ||
Gross carrying amount | 3,236 | 3,241 |
Accumulated amortization | -696 | -366 |
Intangible assets, net | 2,540 | 2,875 |
R&D Technology Rights [Member] | ||
Finite-lived intangible assets: | ||
Gross carrying amount | 1,167 | 1,207 |
Accumulated amortization | -569 | -496 |
Intangible assets, net | 598 | 711 |
Marketing-related Rights [Member] | ||
Finite-lived intangible assets: | ||
Gross carrying amount | 1,241 | 619 |
Accumulated amortization | -512 | -366 |
Intangible assets, net | $729 | $253 |
Goodwill_and_intangible_assets4
Goodwill and intangible assets (Details Textual) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||
Amortization charges associated with finite-lived intangible assets | $1,376,000,000 | $642,000,000 | $397,000,000 | |
Total estimated amortization of finite- lived intangible assets for 2015 | 1,400,000,000 | |||
Total estimated amortization of finite- lived intangible assets for 2016 | 1,300,000,000 | |||
Total estimated amortization of finite- lived intangible assets for 2017 | 1,200,000,000 | |||
Total estimated amortization of finite-lived intangible assets for 2018 | 1,000,000,000 | |||
Total estimated amortization of finite-lived intangible assets for 2019 | 957,000,000 | |||
Micromet Inc. [Member] | IPR&D [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment charge | 46,000,000 | |||
Glaxo Group Limited [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amount of payments made in exchange for the early termination of the Collaboration Agreement | 275,000,000 | |||
Developed Product Technology Rights [Member] | Micromet Inc. [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Indefinite-lived intangible assets reclassified | $408,000,000 |
Accrued_liabilites_Details
Accrued liabilites (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Accrued liabilities [Abstract] | ||
Sales deductions | $1,379 | $1,248 |
Employee compensation and benefits | 920 | 1,003 |
Clinical development costs | 445 | 522 |
Dividends payable | 601 | 460 |
Sales returns reserve | 361 | 295 |
Other | 1,590 | 1,127 |
Total accrued liabilities | $5,296 | $4,655 |
Financing_arrangements_Details
Financing arrangements (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Oct. 01, 2013 |
In Millions, unless otherwise specified | ||||
Carrying values of long-term borrowings | ||||
Other notes | $100 | $105 | ||
Total debt | 30,715 | 32,128 | ||
Less current portion | -500 | -2,505 | ||
Total noncurrent debt | 30,215 | 29,623 | ||
1.875% notes due 2014 (1.875% 2014 Notes) [Member] | ||||
Carrying values of long-term borrowings | ||||
Notes payable, current | 1,000 | |||
4.85% notes due 2014 (4.85% 2014 Notes) [Member] | ||||
Carrying values of long-term borrowings | ||||
Notes payable, current | 1,000 | |||
2.30% notes due 2016 (2.30% 2016 Notes) [Member] | ||||
Carrying values of long-term borrowings | ||||
Notes payable, noncurrent | 749 | 749 | ||
2.50% notes due 2016 (2.50% 2016 Notes) [Member] | ||||
Carrying values of long-term borrowings | ||||
Notes payable, noncurrent | 1,000 | 999 | ||
Floating Rate Notes due 2017 [Member] | ||||
Carrying values of long-term borrowings | ||||
Notes payable, noncurrent | 600 | |||
1.25% notes due 2017 (1.25% 2017 Notes) | ||||
Carrying values of long-term borrowings | ||||
Notes payable, noncurrent | 849 | |||
2.125% notes due 2017 (2.125% 2017 Notes) | ||||
Carrying values of long-term borrowings | ||||
Notes payable, noncurrent | 1,249 | 1,248 | ||
5.85% notes due 2017 (5.85% 2017 Notes) [Member] | ||||
Carrying values of long-term borrowings | ||||
Notes payable, noncurrent | 1,100 | 1,099 | ||
6.15% notes due 2018 (6.15% 2018 Notes) | ||||
Carrying values of long-term borrowings | ||||
Notes payable, noncurrent | 500 | 500 | ||
Master Repurchase Agreement obligation due 2018 [Member] | ||||
Carrying values of long-term borrowings | ||||
Loans payable to bank | 0 | 3,100 | ||
Loans payable to bank, noncurrent | 3,100 | |||
Term Loan Due 2018 [Member] | ||||
Carrying values of long-term borrowings | ||||
Loans payable to bank, noncurrent | 4,375 | 4,875 | 5,000 | |
4.375% euro-denominated notes due 2018 (4.375% 2018 euro Notes) [Member] | ||||
Carrying values of long-term borrowings | ||||
Notes payable, noncurrent | 668 | 751 | ||
Floating Rate Notes due 2019 [Member] | ||||
Carrying values of long-term borrowings | ||||
Notes payable, noncurrent | 250 | |||
2.20% notes due 2019 (2.20% 2019 Notes) [Member] | ||||
Carrying values of long-term borrowings | ||||
Notes payable, noncurrent | 1,398 | |||
5.70% notes due 2019 (5.70% 2019 Notes) [Member] | ||||
Carrying values of long-term borrowings | ||||
Notes payable, noncurrent | 999 | 999 | ||
2.125% euro-denominated notes due 2019 (2.125% 2019 euro Notes) [Member] | ||||
Carrying values of long-term borrowings | ||||
Notes payable, noncurrent | 814 | 925 | ||
4.50% notes due 2020 (4.50% 2020 Notes) [Member] | ||||
Carrying values of long-term borrowings | ||||
Notes payable, noncurrent | 300 | 300 | ||
3.45% notes due 2020 (3.45% 2020 Notes) [Member] | ||||
Carrying values of long-term borrowings | ||||
Notes payable, noncurrent | 898 | 898 | ||
4.10% notes due 2021 (4.10% 2021 Notes) [Member] | ||||
Carrying values of long-term borrowings | ||||
Notes payable, noncurrent | 998 | 998 | ||
3.875% notes due 2021 (3.875% 2021 Notes) [Member] | ||||
Carrying values of long-term borrowings | ||||
Notes payable, noncurrent | 1,747 | 1,746 | ||
3.625% notes due 2022 (3.625% 2022 Notes) [Member] | ||||
Carrying values of long-term borrowings | ||||
Notes payable, noncurrent | 747 | 747 | ||
3.625% notes due 2024 (3.625% 2024 Notes) [Member] | ||||
Carrying values of long-term borrowings | ||||
Notes payable, noncurrent | 1,398 | |||
5.50% pound-sterling-denominated notes due 2026 (5.50% 2026 pound sterling Notes) [Member] | ||||
Carrying values of long-term borrowings | ||||
Notes payable, noncurrent | 735 | 781 | ||
4.00% pound-sterling-denominated notes due 2029 (4.00% 2029 pound sterling Notes) [Member] | ||||
Carrying values of long-term borrowings | ||||
Notes payable, noncurrent | 1,076 | 1,144 | ||
6.375% notes due 2037 (6.375% 2037 Notes) [Member] | ||||
Carrying values of long-term borrowings | ||||
Notes payable, noncurrent | 899 | 899 | ||
6.90% notes due 2038 (6.90% 2038 Notes) [Member] | ||||
Carrying values of long-term borrowings | ||||
Notes payable, noncurrent | 499 | 499 | ||
6.40% notes due 2039 (6.40% 2039 Notes) [Member] | ||||
Carrying values of long-term borrowings | ||||
Notes payable, noncurrent | 996 | 996 | ||
5.75% notes due 2040 (5.75% 2040 Notes) [Member] | ||||
Carrying values of long-term borrowings | ||||
Notes payable, noncurrent | 697 | 697 | ||
4.95% notes due 2041 (4.95% 2041 Notes) [Member] | ||||
Carrying values of long-term borrowings | ||||
Notes payable, noncurrent | 596 | 596 | ||
5.15% notes due 2041 (5.15% 2041 Notes) [Member] | ||||
Carrying values of long-term borrowings | ||||
Notes payable, noncurrent | 2,233 | 2,233 | ||
5.65% notes due 2042 (5.65% 2042 Notes) [Member] | ||||
Carrying values of long-term borrowings | ||||
Notes payable, noncurrent | 1,245 | 1,244 | ||
5.375% notes due 2043 (5.375% 2043 Notes) [Member] | ||||
Carrying values of long-term borrowings | ||||
Notes payable, noncurrent | $1,000 | $1,000 |
Financing_arrangements_Details1
Financing arrangements (Details 1) (USD $) | Dec. 31, 2014 |
Interest Rate Swap, 2014 [Member] | |
Debt Instrument [Line Items] | |
Notional amount | $2,250,000,000 |
Interest Rate Swap 2013 [Member] | |
Debt Instrument [Line Items] | |
Notional amount | 4,400,000,000 |
Notes Payable [Member] | 1.25% notes due 2017 (1.25% 2017 Notes) | Interest Rate Swap, 2014 [Member] | |
Debt Instrument [Line Items] | |
Notional amount | 850,000,000 |
Notes Payable [Member] | 1.25% notes due 2017 (1.25% 2017 Notes) | LIBOR [Member] | Interest Rate Swap, 2014 [Member] | |
Debt Instrument [Line Items] | |
Derivative, effective interest rate | 0.40% |
Notes Payable [Member] | 2.20% notes due 2019 (2.20% 2019 Notes) [Member] | Interest Rate Swap, 2014 [Member] | |
Debt Instrument [Line Items] | |
Notional amount | 1,400,000,000 |
Notes Payable [Member] | 2.20% notes due 2019 (2.20% 2019 Notes) [Member] | LIBOR [Member] | Interest Rate Swap, 2014 [Member] | |
Debt Instrument [Line Items] | |
Derivative, effective interest rate | 0.60% |
Notes Payable [Member] | 3.45% notes due 2020 (3.45% 2020 Notes) [Member] | Interest Rate Swap 2013 [Member] | |
Debt Instrument [Line Items] | |
Notional amount | 900,000,000 |
Notes Payable [Member] | 3.45% notes due 2020 (3.45% 2020 Notes) [Member] | LIBOR [Member] | Interest Rate Swap 2013 [Member] | |
Debt Instrument [Line Items] | |
Derivative, effective interest rate | 1.10% |
Notes Payable [Member] | 4.10% notes due 2021 (4.10% 2021 Notes) [Member] | Interest Rate Swap 2013 [Member] | |
Debt Instrument [Line Items] | |
Notional amount | 1,000,000,000 |
Notes Payable [Member] | 4.10% notes due 2021 (4.10% 2021 Notes) [Member] | LIBOR [Member] | Interest Rate Swap 2013 [Member] | |
Debt Instrument [Line Items] | |
Derivative, effective interest rate | 1.70% |
Notes Payable [Member] | 3.875% notes due 2021 (3.875% 2021 Notes) [Member] | Interest Rate Swap 2013 [Member] | |
Debt Instrument [Line Items] | |
Notional amount | 1,750,000,000 |
Notes Payable [Member] | 3.875% notes due 2021 (3.875% 2021 Notes) [Member] | LIBOR [Member] | Interest Rate Swap 2013 [Member] | |
Debt Instrument [Line Items] | |
Derivative, effective interest rate | 2.00% |
Notes Payable [Member] | 3.625% notes due 2022 (3.625% 2022 Notes) [Member] | Interest Rate Swap 2013 [Member] | |
Debt Instrument [Line Items] | |
Notional amount | $750,000,000 |
Notes Payable [Member] | 3.625% notes due 2022 (3.625% 2022 Notes) [Member] | LIBOR [Member] | Interest Rate Swap 2013 [Member] | |
Debt Instrument [Line Items] | |
Derivative, effective interest rate | 1.60% |
Financing_arrangements_Details2
Financing arrangements (Details 2) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Maturities of Long-term Debt [Abstract] | |
2015 | $500 |
2016 | 2,250 |
2017 | 4,300 |
2018 | 4,045 |
2019 | 3,467 |
Thereafter | 16,230 |
Total | $30,792 |
Financing_arrangements_Details3
Financing arrangements (Details Textual) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Oct. 01, 2013 | Oct. 01, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | 1-May-13 | Feb. 28, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | 1-May-13 | Dec. 31, 2006 | Feb. 28, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Jul. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 1997 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | |
USD ($) | USD ($) | USD ($) | Interest rate swap [Member] | Interest rate swap [Member] | Interest rate swap [Member] | Interest rate swap [Member] | Interest Rate Swap, 2014 [Member] | Interest Rate Swap 2013 [Member] | LIBOR [Member] | Onyx Pharmaceuticals, Inc. [Member] | MN [Member] | 4.85% notes due 2014 (4.85% 2014 Notes) [Member] | 5.85% notes due 2017 (5.85% 2017 Notes) [Member] | 6.15% notes due 2018 (6.15% 2018 Notes) | 5.70% notes due 2019 (5.70% 2019 Notes) [Member] | 4.10% notes due 2021 (4.10% 2021 Notes) [Member] | 3.875% notes due 2021 (3.875% 2021 Notes) [Member] | 3.625% notes due 2022 (3.625% 2022 Notes) [Member] | 6.375% notes due 2037 (6.375% 2037 Notes) [Member] | 6.375% notes due 2037 (6.375% 2037 Notes) [Member] | Floating Rate Notes Due 2017 [Member] | Floating Rate Notes due 2019 [Member] | Master Repurchase Agreement obligation due 2018 [Member] | Master Repurchase Agreement obligation due 2018 [Member] | Master Repurchase Agreement obligation due 2018 [Member] | Term Loan Due 2018 [Member] | Term Loan Due 2018 [Member] | Term Loan Due 2018 [Member] | Term Loan Due 2018 [Member] | Notes due in 2097 [Member] | Other notes [Member] | Other notes [Member] | Other notes [Member] | Term Loan Due 2018 [Member] | Term Loan Due 2018 [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Commercial Paper [Member] | Commercial Paper [Member] | Line of Credit [Member] | Line of Credit [Member] | Line of Credit [Member] | Medium-term Notes [Member] | Medium-term Notes [Member] | Medium-term Notes [Member] | Fair Value Hedging [Member] | Fair Value Hedging [Member] | Fair Value Hedging [Member] | |
USD ($) | Derivatives designated as hedging instrument [Member] | Derivatives designated as hedging instrument [Member] | Derivatives designated as hedging instrument [Member] | USD ($) | USD ($) | Interest rate swap [Member] | USD ($) | USD ($) | USD ($) | ATL Holdings [Member] | LIBOR [Member] | USD ($) | USD ($) | USD ($) | LIBOR [Member] | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | .375% Convertible Notes Due 2013 [Member] | .375% Convertible Notes Due 2013 [Member] | .375% Convertible Notes Due 2013 [Member] | .375% Convertible Notes Due 2013 [Member] | .375% Convertible Notes Due 2013 [Member] | .375% Convertible Notes Due 2013 [Member] | .375% Convertible Notes Due 2013 [Member] | .375% Convertible Notes Due 2013 [Member] | 1.875% notes due 2014 (1.875% 2014 Notes) [Member] | 1.875% notes due 2014 (1.875% 2014 Notes) [Member] | 4.85% notes due 2014 (4.85% 2014 Notes) [Member] | 4.85% notes due 2014 (4.85% 2014 Notes) [Member] | 2.30% notes due 2016 (2.30% 2016 Notes) [Member] | 2.30% notes due 2016 (2.30% 2016 Notes) [Member] | 2.50% notes due 2016 (2.50% 2016 Notes) [Member] | 2.50% notes due 2016 (2.50% 2016 Notes) [Member] | 1.25% notes due 2017 (1.25% 2017 Notes) | 1.25% notes due 2017 (1.25% 2017 Notes) | 2.125% notes due 2017 (2.125% 2017 Notes) | 2.125% notes due 2017 (2.125% 2017 Notes) | 2.125% notes due 2017 (2.125% 2017 Notes) | 5.85% notes due 2017 (5.85% 2017 Notes) [Member] | 5.85% notes due 2017 (5.85% 2017 Notes) [Member] | 6.15% notes due 2018 (6.15% 2018 Notes) | 6.15% notes due 2018 (6.15% 2018 Notes) | 4.375% euro-denominated notes due 2018 (4.375% 2018 euro Notes) [Member] | 4.375% euro-denominated notes due 2018 (4.375% 2018 euro Notes) [Member] | 2.20% notes due 2019 (2.20% 2019 Notes) [Member] | 2.20% notes due 2019 (2.20% 2019 Notes) [Member] | 5.70% notes due 2019 (5.70% 2019 Notes) [Member] | 5.70% notes due 2019 (5.70% 2019 Notes) [Member] | 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] | 2.125% euro-denominated notes due 2019 (2.125% 2019 euro Notes) [Member] | 4.50% notes due 2020 (4.50% 2020 Notes) [Member] | 4.50% notes due 2020 (4.50% 2020 Notes) [Member] | 3.45% notes due 2020 (3.45% 2020 Notes) [Member] | 3.45% notes due 2020 (3.45% 2020 Notes) [Member] | 3.45% notes due 2020 (3.45% 2020 Notes) [Member] | 4.10% notes due 2021 (4.10% 2021 Notes) [Member] | 4.10% notes due 2021 (4.10% 2021 Notes) [Member] | 4.10% notes due 2021 (4.10% 2021 Notes) [Member] | 3.875% notes due 2021 (3.875% 2021 Notes) [Member] | 3.875% notes due 2021 (3.875% 2021 Notes) [Member] | 3.875% notes due 2021 (3.875% 2021 Notes) [Member] | 3.625% notes due 2022 (3.625% 2022 Notes) [Member] | 3.625% notes due 2022 (3.625% 2022 Notes) [Member] | 3.625% notes due 2022 (3.625% 2022 Notes) [Member] | 3.625% notes due 2022 (3.625% 2022 Notes) [Member] | 3.625% notes due 2024 (3.625% 2024 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] | 4.00% pound-sterling-denominated notes due 2029 (4.00% 2029 pound sterling Notes) [Member] | 6.90% notes due 2038 (6.90% 2038 Notes) [Member] | 6.90% notes due 2038 (6.90% 2038 Notes) [Member] | 6.40% notes due 2039 (6.40% 2039 Notes) [Member] | 6.40% notes due 2039 (6.40% 2039 Notes) [Member] | 5.75% notes due 2040 (5.75% 2040 Notes) [Member] | 5.75% notes due 2040 (5.75% 2040 Notes) [Member] | 4.95% notes due 2041 (4.95% 2041 Notes) [Member] | 4.95% notes due 2041 (4.95% 2041 Notes) [Member] | 5.15% notes due 2041 (5.15% 2041 Notes) [Member] | 5.15% notes due 2041 (5.15% 2041 Notes) [Member] | 5.65% notes due 2042 (5.65% 2042 Notes) [Member] | 5.65% notes due 2042 (5.65% 2042 Notes) [Member] | 5.375% notes due 2043 (5.375% 2043 Notes) [Member] | 5.375% notes due 2043 (5.375% 2043 Notes) [Member] | 5.375% notes due 2043 (5.375% 2043 Notes) [Member] | Floating Rate Notes Due 2017 [Member] | Floating Rate Notes due 2019 [Member] | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Shelf Registration Statement [Member] | Shelf Registration Statement [Member] | Shelf Registration Statement [Member] | Interest rate swap [Member] | Interest Rate Swap, 2014 [Member] | Interest Rate Swap 2013 [Member] | |||||||||||||||
USD ($) | USD ($) | USD ($) | Preferred Class A [Member] | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Excess Conversion Value [Member] | Interest Rate Swap, 2014 [Member] | Interest Rate Swap, 2014 [Member] | EUR (€) | Interest Rate Swap 2013 [Member] | Interest Rate Swap 2013 [Member] | Interest Rate Swap 2013 [Member] | Interest Rate Swap 2013 [Member] | GBP (£) | Three-Month London Interbank Offered Rate (LIBOR) [Member] | Three-Month London Interbank Offered Rate (LIBOR) [Member] | extension | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing arrangements (Textual) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repayments of notes payable | $5,600,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repayments of other debt | 5,000,000 | 4,000,000 | 123,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stated contractual interest rate on note | 4.85% | 5.85% | 6.15% | 5.70% | 4.10% | 3.88% | 3.63% | 6.38% | 6.38% | 0.38% | 0.38% | 1.88% | 1.88% | 4.85% | 4.85% | 2.30% | 2.30% | 2.50% | 2.50% | 1.25% | 2.13% | 2.13% | 2.13% | 5.85% | 5.85% | 6.15% | 6.15% | 4.38% | 4.38% | 2.20% | 5.70% | 5.70% | 2.13% | 2.13% | 2.13% | 4.50% | 4.50% | 3.45% | 3.45% | 4.10% | 4.10% | 3.88% | 3.88% | 3.63% | 3.63% | 3.63% | 3.63% | 5.50% | 5.50% | 4.00% | 4.00% | 4.00% | 6.90% | 6.90% | 6.40% | 6.40% | 5.75% | 5.75% | 4.95% | 4.95% | 5.15% | 5.15% | 5.65% | 5.65% | 5.38% | 5.38% | 5.38% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Repayments of convertible notes | 742,000,000 | 2,500,000,000 | 99,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aggregate principal amount of notes issued | 4,500,000,000 | 8,100,000,000 | 5,000,000,000 | 2,500,000,000 | 675,000,000 | 700,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis spread on variable rate | 1.10% | 1.00% | 0.38% | 0.60% | 0.90% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total debt issuance costs | 18,000,000 | 46,000,000 | 25,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redemption price as a percentage of the principal amount of notes that may be required to be paid in the event of a change in control triggering event | 101.00% | 101.00% | 101.00% | 101.00% | 101.00% | 101.00% | 101.00% | 101.00% | 101.00% | 101.00% | 101.00% | 101.00% | 101.00% | 101.00% | 101.00% | 101.00% | 101.00% | 101.00% | 101.00% | 101.00% | 101.00% | 101.00% | 101.00% | 101.00% | 101.00% | 101.00% | 101.00% | 101.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sale of stock, number of shares issued in transaction | 34,097 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans payable to bank, noncurrent | 3,100,000,000 | 4,375,000,000 | 4,875,000,000 | 5,000,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Description of variable rate basis | LIBOR | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, periodic payment, principal | 125,000,000 | 500,000,000 | 125,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash settlement of convertible bond hedge | 99,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class of warrant or right, number of securities called by warrants or rights | 32,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise price of warrants | $104.80 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments for repurchase of warrants | 100,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effective interest rate | 6.35% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | 1,071,000,000 | 1,022,000,000 | 1,053,000,000 | 13,000,000 | 151,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-cash interest expense | 12,000,000 | 142,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying amount of equity component of debt | 829,000,000 | 829,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other notes | 100,000,000 | 105,000,000 | 5,000,000 | 100,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swap contracts - fair value hedge - notional amounts | 3,600,000,000 | 2,250,000,000 | 4,400,000,000 | 3,600,000,000 | 2,250,000,000 | 4,400,000,000 | 850,000,000 | 1,400,000,000 | 900,000,000 | 1,000,000,000 | 1,750,000,000 | 750,000,000 | 6,650,000,000 | 2,250,000,000 | 4,400,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative lower range variable interest rate | 0.30% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative higher range variable interest rate | 2.60% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maximum borrowing capacity under commercial paper program | 2,500,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount outstanding under commercial paper program | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maximum current borrowing capacity under a syndicated, unsecured, revolving credit agreement | 2,500,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount by which the borrowing capacity under a syndicated, unsecured, revolving credit agreement maybe increased upon our request at the discretion of the banks | 500,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Initial commitment term of each bank which is a party to the agreement | 5 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of additional extensions | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional period for extension of commitment term | 1 year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Annual commitment fees for syndicated, unsecured, revolving credit agreement | 0.10% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount outstanding under syndicated, unsecured, revolving credit facility | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount that may be issued under a medium term note program established under the shelf registration statement | 400,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount outstanding under medium term note program | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest costs capitalized | 18,000,000 | 18,000,000 | 26,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest paid, net of interest rate swaps | $1,099,000,000 | $1,077,000,000 | $481,000,000 |
Stockholders_equity_Details
Stockholders' equity (Details) (Stock Repurchase Program [Member], USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Stock Repurchase Program [Member] | |||||||||||||||
Stock repurchase program | |||||||||||||||
Stock repurchases (in shares) | 0.9 | 0 | 0 | 0 | 0 | 0 | 0 | 9.1 | 14.2 | 9.7 | 17.4 | 21 | 0.9 | 9.1 | 62.3 |
Stock repurchases | $153 | $0 | $0 | $0 | $0 | $0 | $0 | $771 | $1,233 | $797 | $1,203 | $1,429 | $153 | $771 | $4,662 |
Stockholders_equity_Details_1
Stockholders' equity (Details 1) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning balance, Foreign currency translation | ($68) | $12 | $21 |
Beginning balance, Cash flow hedges | -33 | -35 | 43 |
Beginning balance, Available-for-sale securities | -43 | 183 | 120 |
Beginning balance, Other | -17 | -14 | -13 |
Beginning balance, AOCI | -161 | 146 | 171 |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Foreign currency translation adjustments | -218 | -71 | -13 |
Unrealized gains (losses), Cash flow hedges | 298 | 88 | 15 |
Unrealized gains (losses), Available-for-sale securities | 37 | -284 | 233 |
Unrealized gains (losses), Other | 1 | -1 | -1 |
Unrealized gains (losses), AOCI | 336 | -197 | 247 |
Reclassification adjustments to income, Cash flow hedges | 203 | -85 | -134 |
Reclassification adjustments to income, Available-for-sale securities | 1 | -75 | -132 |
Reclassification adjustments to income, AOCI | 204 | -160 | -266 |
Other | 1 | -2 | |
Other, AOCI | 1 | -2 | |
Income taxes, Foreign currency translation | 22 | -9 | 4 |
Income taxes, Cash flow hedges | -178 | -1 | 41 |
Income taxes, Available-for-sale securities | -14 | 133 | -38 |
Income taxes, Other | 0 | 0 | 0 |
Income taxes, AOCI | -170 | 123 | 7 |
Ending balance, Foreign currency translation | -264 | -68 | 12 |
Ending balance, Cash flow hedges | 290 | -33 | -35 |
Ending balance, Available-for-sale securities | -19 | -43 | 183 |
Ending balance, Other | -15 | -17 | -14 |
Ending balance, AOCI | ($8) | ($161) | $146 |
Stockholders_equity_Details_2
Stockholders' equity (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Product sales | $5,174 | $4,848 | $4,949 | $4,356 | $4,799 | $4,647 | $4,595 | $4,151 | $19,327 | $18,192 | $16,639 |
Interest and other income, net | 465 | 420 | 485 | ||||||||
Interest expense, net | -1,071 | -1,022 | -1,053 | ||||||||
Income before income taxes | 5,585 | 5,265 | 5,009 | ||||||||
Tax benefit (expense) | -427 | -184 | -664 | ||||||||
Net income | 1,294 | 1,244 | 1,547 | 1,073 | 1,021 | 1,368 | 1,258 | 1,434 | 5,158 | 5,081 | 4,345 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Cash flow hedges [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Product sales | 28 | 4 | |||||||||
Interest and other income, net | -230 | 82 | |||||||||
Interest expense, net | -1 | -1 | |||||||||
Income before income taxes | -203 | 85 | |||||||||
Tax benefit (expense) | 74 | -33 | |||||||||
Net income | -129 | 52 | |||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Available-for-sale securities [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Interest and other income, net | -1 | 75 | |||||||||
Tax benefit (expense) | 0 | -28 | |||||||||
Net income | ($1) | $47 |
Stockholders_equity_Details_Te
Stockholders' equity (Details Textual) (USD $) | 0 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 17, 2014 | Dec. 05, 2014 | Oct. 17, 2014 | Sep. 05, 2014 | Jul. 25, 2014 | Jun. 06, 2014 | Mar. 07, 2014 | Mar. 05, 2014 | Dec. 13, 2013 | Dec. 06, 2013 | Oct. 16, 2013 | Sep. 06, 2013 | Jul. 26, 2013 | Jun. 07, 2013 | Mar. 07, 2013 | Mar. 06, 2013 | Dec. 13, 2012 | Dec. 07, 2012 | Oct. 10, 2012 | Sep. 07, 2012 | Jul. 19, 2012 | Jun. 07, 2012 | Mar. 15, 2012 | Mar. 07, 2012 | Dec. 15, 2011 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 31, 2014 | |
Equity [Abstract] | |||||||||||||||||||||||||||||
Amount available for stock repurchases under a board approved stock repurchase plan | $3,800,000,000 | $4,000,000,000 | |||||||||||||||||||||||||||
Common stock, dividends declared per share (in usd per share) | $0.79 | $0.61 | $0.61 | $0.61 | $0.61 | $0.47 | $0.47 | $0.47 | $0.47 | $0.36 | $0.36 | $0.36 | $0.36 | ||||||||||||||||
Dividends paid per share (in usd per share) | $0.61 | $0.61 | $0.61 | $0.61 | $0.47 | $0.47 | $0.47 | $0.47 | $0.36 | $0.36 | $0.36 | $0.36 | |||||||||||||||||
Income taxes expense or (benefit) for unrealized gains and losses for cash flow hedges | 104,000,000 | 34,000,000 | 8,000,000 | ||||||||||||||||||||||||||
Income tax expense or (benefit) reclassification adjustments to income for cash flow hedges | 74,000,000 | -33,000,000 | -49,000,000 | ||||||||||||||||||||||||||
Income taxes expense or (benefit) for unrealized gains and losses for available-for-sale securities | 14,000,000 | -105,000,000 | 87,000,000 | ||||||||||||||||||||||||||
Income tax expense or (benefit) for reclassification adjustments to income for available-for-sale securities | $0 | ($28,000,000) | ($49,000,000) | ||||||||||||||||||||||||||
Preferred stock shares authorized (in shares) | 5,000,000 | ||||||||||||||||||||||||||||
Preferred stock, par value (in usd per share) | $0.00 | ||||||||||||||||||||||||||||
Preferred stock, shares issued (in shares) | 0 | 0 | |||||||||||||||||||||||||||
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Fair_value_measurement_Details
Fair value measurement (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Assets: | |||
Total available-for-sale investments | $26,732 | $22,363 | |
Fair Value, Measurements, Recurring [Member] | |||
Derivative Assets: | |||
Total assets | 27,170 | 22,609 | |
Derivative Liabilities: | |||
Contingent consideration obligations in connection with business combinations | 215 | 595 | |
Total liabilities | 257 | 867 | |
Fair Value, Measurements, Recurring [Member] | Foreign currency contracts [Member] | |||
Derivative Assets: | |||
Foreign currency contracts | 360 | 53 | |
Derivative Liabilities: | |||
Foreign currency contracts | 4 | 107 | |
Fair Value, Measurements, Recurring [Member] | Cross-currency swap contracts [Member] | |||
Derivative Assets: | |||
Foreign currency contracts | 32 | 193 | |
Derivative Liabilities: | |||
Foreign currency contracts | 12 | 4 | |
Fair Value, Measurements, Recurring [Member] | Interest rate swap contracts [Member] | |||
Derivative Assets: | |||
Interest rate swap contracts | 46 | ||
Derivative Liabilities: | |||
Interest rate swap contracts | 26 | 161 | |
Fair Value, Measurements, Recurring [Member] | U.S. Treasury securities [Member] | |||
Assets: | |||
Total available-for-sale investments | 3,646 | 4,730 | |
Fair Value, Measurements, Recurring [Member] | Other government-related debt securities - U.S. [Member] | |||
Assets: | |||
Total available-for-sale investments | 528 | 1,079 | |
Fair Value, Measurements, Recurring [Member] | Other government-related debt securities - Foreign and other [Member] | |||
Assets: | |||
Total available-for-sale investments | 1,569 | 1,546 | |
Fair Value, Measurements, Recurring [Member] | Corporate debt securities - Financial [Member] | |||
Assets: | |||
Total available-for-sale investments | 6,041 | 3,676 | |
Fair Value, Measurements, Recurring [Member] | Corporate debt securities - Industrial [Member] | |||
Assets: | |||
Total available-for-sale investments | 6,351 | 3,760 | |
Fair Value, Measurements, Recurring [Member] | Corporate debt securities - Other [Member] | |||
Assets: | |||
Total available-for-sale investments | 649 | 390 | |
Fair Value, Measurements, Recurring [Member] | Residential mortgage-backed securities [Member] | |||
Assets: | |||
Total available-for-sale investments | 1,702 | 1,460 | |
Fair Value, Measurements, Recurring [Member] | Other mortgage- and asset-backed securities [Member] | |||
Assets: | |||
Total available-for-sale investments | 1,796 | 1,511 | |
Fair Value, Measurements, Recurring [Member] | Money market mutual funds [Member] | |||
Assets: | |||
Total available-for-sale investments | 3,004 | 3,366 | |
Fair Value, Measurements, Recurring [Member] | Other short-term interest-bearing securities [Member] | |||
Assets: | |||
Total available-for-sale investments | 1,302 | 750 | |
Fair Value, Measurements, Recurring [Member] | Equity securities [Member] | |||
Assets: | |||
Total available-for-sale investments | 144 | 95 | |
Fair Value, Measurements, Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | |||
Derivative Assets: | |||
Total assets | 6,794 | 8,191 | |
Derivative Liabilities: | |||
Contingent consideration obligations in connection with business combinations | 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] | Interest rate swap contracts [Member] | |||
Derivative Assets: | |||
Interest rate swap contracts | 0 | ||
Derivative Liabilities: | |||
Interest rate swap 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 | 3,646 | 4,730 | |
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 | 3,004 | 3,366 | |
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 | 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 | 144 | 95 | |
Fair Value, Measurements, Recurring [Member] | Significant other observable inputs (Level 2) [Member] | |||
Derivative Assets: | |||
Total assets | 20,376 | 14,418 | |
Derivative Liabilities: | |||
Contingent consideration obligations in connection with business combinations | 0 | 0 | |
Total liabilities | 42 | 272 | |
Fair Value, Measurements, Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Foreign currency contracts [Member] | |||
Derivative Assets: | |||
Foreign currency contracts | 360 | 53 | |
Derivative Liabilities: | |||
Foreign currency contracts | 4 | 107 | |
Fair Value, Measurements, Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Cross-currency swap contracts [Member] | |||
Derivative Assets: | |||
Foreign currency contracts | 32 | 193 | |
Derivative Liabilities: | |||
Foreign currency contracts | 12 | 4 | |
Fair Value, Measurements, Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Interest rate swap contracts [Member] | |||
Derivative Assets: | |||
Interest rate swap contracts | 46 | ||
Derivative Liabilities: | |||
Interest rate swap contracts | 26 | 161 | |
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 | 528 | 1,079 | |
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 | 1,569 | 1,546 | |
Fair Value, Measurements, Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Corporate debt securities - Financial [Member] | |||
Assets: | |||
Total available-for-sale investments | 6,041 | 3,676 | |
Fair Value, Measurements, Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Corporate debt securities - Industrial [Member] | |||
Assets: | |||
Total available-for-sale investments | 6,351 | 3,760 | |
Fair Value, Measurements, Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Corporate debt securities - Other [Member] | |||
Assets: | |||
Total available-for-sale investments | 649 | 390 | |
Fair Value, Measurements, Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Residential mortgage-backed securities [Member] | |||
Assets: | |||
Total available-for-sale investments | 1,702 | 1,460 | |
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 | 1,796 | 1,511 | |
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 | 1,302 | 750 | |
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: | |||
Total assets | 0 | ||
Derivative Liabilities: | |||
Contingent consideration obligations in connection with business combinations | 215 | 595 | 221 |
Total liabilities | 215 | 595 | |
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] | Interest rate swap contracts [Member] | |||
Derivative Assets: | |||
Interest rate swap contracts | 0 | ||
Derivative Liabilities: | |||
Interest rate swap 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 | 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_measurement_Details1
Fair value measurement (Details 1) (USD $) | 1 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
Onyx Pharmaceuticals, Inc. [Member] | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Net changes in valuation | ($36) | ||
Settlement of contingent consideration | -225 | ||
Biovex Group Inc [Member] | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Net changes in valuation | 6 | 113 | |
Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Ending balance | 215 | 215 | 595 |
Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Beginning balance | 595 | 221 | |
Net changes in valuation | -30 | 113 | |
Ending balance | 215 | 215 | 595 |
Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Onyx Pharmaceuticals, Inc. [Member] | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Additions from Onyx acquisition | 0 | 261 | |
Settlement of contingent consideration | -225 | 0 | |
Fair Value, Measurements, Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Biovex Group Inc [Member] | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Settlement of contingent consideration | ($125) | $0 |
Fair_value_measurement_Details2
Fair value measurement (Details Textual) (USD $) | 12 Months Ended | 3 Months Ended | 1 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Mar. 31, 2011 | Oct. 01, 2013 | |
payment | payment | |||||
Fair Value Measurement (Textual) [Abstract] | ||||||
Length of time hedged in foreign currency contracts | 3 years | |||||
Aggregate fair value of long-term debt, including current portion | $33,600,000,000 | $33,500,000,000 | $33,600,000,000 | $33,600,000,000 | ||
Carrying value of long-term debt, including current portion | 30,715,000,000 | 32,128,000,000 | 30,715,000,000 | 30,715,000,000 | ||
Biovex Group Inc [Member] | ||||||
Fair Value Measurement (Textual) [Abstract] | ||||||
Maximum additional consideration due contingent on certain milestones | 575,000,000 | |||||
Change in fair values of contingent consideration obligations | 6,000,000 | 113,000,000 | ||||
Biovex Group Inc [Member] | Due to Filing of BLA in the US [Member] | ||||||
Fair Value Measurement (Textual) [Abstract] | ||||||
Settlement of contingent consideration | 125,000,000 | |||||
Biovex Group Inc [Member] | Upon First Commercial Sale in the US [Member] | ||||||
Fair Value Measurement (Textual) [Abstract] | ||||||
Additional contingent consideration upon achievement of milestones | 125,000,000 | 125,000,000 | 125,000,000 | |||
Biovex Group Inc [Member] | Upon Achievement of Agreed Level of Worldwide Sales [Member] | ||||||
Fair Value Measurement (Textual) [Abstract] | ||||||
Additional contingent consideration upon achievement of milestones | 125,000,000 | 125,000,000 | 125,000,000 | |||
Biovex Group Inc [Member] | Upon Achievement of Certain Other Regulatory and Sales-related Milestones [Member] | ||||||
Fair Value Measurement (Textual) [Abstract] | ||||||
Additional contingent consideration upon achievement of milestones | 200,000,000 | 200,000,000 | 200,000,000 | |||
Onyx Pharmaceuticals, Inc. [Member] | ||||||
Fair Value Measurement (Textual) [Abstract] | ||||||
Maximum additional consideration due contingent on certain milestones | 150,000,000 | |||||
Change in fair values of contingent consideration obligations | -36,000,000 | |||||
Number of milestone payments | 1 | 1 | 1 | 2 | ||
Settlement of contingent consideration | $225,000,000 | |||||
Other government-related and corporate debt securities [Member] | ||||||
Fair Value Measurement (Textual) [Abstract] | ||||||
Investment maturity period | 5 years |
Derivative_Instruments_Details
Derivative Instruments (Details) (Cash flow hedge [Member], Cross-currency swap contracts [Member]) | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 |
2.125% euro-denominated notes due 2019 (2.125% 2019 euro Notes) [Member] | 2.125% euro-denominated notes due 2019 (2.125% 2019 euro Notes) [Member] | 2.125% euro-denominated notes due 2019 (2.125% 2019 euro Notes) [Member] | 2.125% euro-denominated notes due 2019 (2.125% 2019 euro Notes) [Member] | 5.50% pound-sterling-denominated notes due 2026 (5.50% 2026 pound sterling Notes) [Member] | 5.50% pound-sterling-denominated notes due 2026 (5.50% 2026 pound sterling Notes) [Member] | 5.50% pound-sterling-denominated notes due 2026 (5.50% 2026 pound sterling Notes) [Member] | 5.50% pound-sterling-denominated notes due 2026 (5.50% 2026 pound sterling Notes) [Member] | 4.00% pound-sterling-denominated notes due 2029 (4.00% 2029 pound sterling Notes) [Member] | 4.00% pound-sterling-denominated notes due 2029 (4.00% 2029 pound sterling Notes) [Member] | 4.00% pound-sterling-denominated notes due 2029 (4.00% 2029 pound sterling Notes) [Member] | 4.00% pound-sterling-denominated notes due 2029 (4.00% 2029 pound sterling Notes) [Member] | |
USD ($) | EUR (€) | Euro | Dollars | USD ($) | GBP (£) | Sterling Pounds | Dollars | USD ($) | GBP (£) | Sterling Pounds | Dollars | |
Derivative [Line Items] | ||||||||||||
Notional Amount | $864,000,000 | € 675,000,000 | $747,000,000 | £ 475,000,000 | $1,111,000,000 | £ 700,000,000 | ||||||
Interest Rate | 2.13% | 2.60% | 5.50% | 6.00% | 4.00% | 4.50% |
Derivative_Instruments_Details1
Derivative Instruments (Details 1) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Effective portion of the unrealized gain (loss) recognized in Other Comprehensive Income for our derivative instruments designated as cash flow hedges contracts [Abstract] | |||
Unrealized gain (loss) on derivative instruments recognized in Other Comprehensive Income, effective portion, net | $298 | $88 | $15 |
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 contracts [Abstract] | |||
Unrealized gain (loss) on derivative instruments recognized in Other Comprehensive Income, effective portion, net | 452 | -44 | -63 |
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 contracts [Abstract] | |||
Unrealized gain (loss) on derivative instruments recognized in Other Comprehensive Income, effective portion, net | -154 | 132 | 85 |
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 contracts [Abstract] | |||
Unrealized gain (loss) on derivative instruments recognized in Other Comprehensive Income, effective portion, net | $0 | $0 | ($7) |
Recovered_Sheet1
Derivative instruments (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Location in the 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 contracts [Abstract] | |||||||||||
Product sales | $5,174 | $4,848 | $4,949 | $4,356 | $4,799 | $4,647 | $4,595 | $4,151 | $19,327 | $18,192 | $16,639 |
Derivatives in cash flow hedging relationships [Member] | |||||||||||
Location in the 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 contracts [Abstract] | |||||||||||
Total | -203 | 85 | 134 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivatives in cash flow hedging relationships [Member] | Foreign currency contracts [Member] | |||||||||||
Location in the 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 contracts [Abstract] | |||||||||||
Product sales | 28 | 4 | 74 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivatives in cash flow hedging relationships [Member] | Cross-currency swap contracts [Member] | |||||||||||
Location in the 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 contracts [Abstract] | |||||||||||
The amount of gain (loss) recognized in interest and other income, net | -230 | 82 | 61 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivatives in cash flow hedging relationships [Member] | Forward interest rate contracts [Member] | |||||||||||
Location in the 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 contracts [Abstract] | |||||||||||
The amount of gain (loss) recognized in interest expense, net | ($1) | ($1) | ($1) |
Recovered_Sheet2
Derivative instruments (Details 3) (Foreign currency contracts [Member], Interest and other income, net [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 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 | |||
Derivatives not designated as hedging instruments | ($10) | $15 | $19 |
Derivative_instruments_Details2
Derivative instruments (Details 4) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets | ||
Total derivative assets, fair value | $438 | $246 |
Liabilities | ||
Total derivative liabilities, fair value | 42 | 272 |
Derivatives designated as hedging instrument [Member] | ||
Assets | ||
Total derivative assets, fair value | 434 | 246 |
Liabilities | ||
Total derivative liabilities, fair value | 38 | 269 |
Derivatives designated as hedging instrument [Member] | Cross-currency swap contracts [Member] | Other current assets/Other noncurrent assets [Member] | ||
Assets | ||
Total derivative assets, fair value | 32 | 193 |
Derivatives designated as hedging instrument [Member] | Cross-currency swap contracts [Member] | Accrued liabilities/Other noncurrent liabilities [Member] | ||
Liabilities | ||
Total derivative liabilities, fair value | 12 | 4 |
Derivatives designated as hedging instrument [Member] | Foreign currency contracts [Member] | Other current assets/Other noncurrent assets [Member] | ||
Assets | ||
Total derivative assets, fair value | 356 | 53 |
Derivatives designated as hedging instrument [Member] | Foreign currency contracts [Member] | Accrued liabilities/Other noncurrent liabilities [Member] | ||
Liabilities | ||
Total derivative liabilities, fair value | 0 | 104 |
Derivatives designated as hedging instrument [Member] | Interest rate swap contracts [Member] | Other current assets/Other noncurrent assets [Member] | ||
Assets | ||
Total derivative assets, fair value | 46 | 0 |
Derivatives designated as hedging instrument [Member] | Interest rate swap contracts [Member] | Accrued liabilities/Other noncurrent liabilities [Member] | ||
Liabilities | ||
Total derivative liabilities, fair value | 26 | 161 |
Derivatives not designated as hedging instrument [Member] | ||
Assets | ||
Total derivative assets, fair value | 4 | 0 |
Liabilities | ||
Total derivative liabilities, fair value | 4 | 3 |
Derivatives not designated as hedging instrument [Member] | Foreign currency contracts [Member] | Other current assets [Member] | ||
Assets | ||
Total derivative assets, fair value | 4 | 0 |
Derivatives not designated as hedging instrument [Member] | Foreign currency contracts [Member] | Accrued liabilities [Member] | ||
Liabilities | ||
Total derivative liabilities, fair value | $4 | $3 |
Derivative_instruments_Details3
Derivative instruments (Details Textual) (USD $) | 12 Months Ended | 3 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | |
Derivative instruments (Textual) [Abstract] | ||||
Length of time hedged in foreign currency contracts | 3 years | |||
Interest expense, net [Member] | ||||
Derivative instruments (Textual) [Abstract] | ||||
Unrealized gain (loss) on the hedged debt | -181,000,000 | $161,000,000 | ($20,000,000) | |
Offsetting unrealized gain (loss) on related interest rate swaps | 181,000,000 | -161,000,000 | 20,000,000 | |
Net cash provided by operating activities [Member] | ||||
Derivative instruments (Textual) [Abstract] | ||||
Receipt from counterparties upon termination of interest rate swap contracts | 397,000,000 | |||
5.50% 2026 pound sterling Notes [Member] | Notes Payable [Member] | ||||
Derivative instruments (Textual) [Abstract] | ||||
Stated contractual interest rate on note | 5.50% | 5.50% | ||
4.00% 2029 pound sterling Notes [Member] | Notes Payable [Member] | ||||
Derivative instruments (Textual) [Abstract] | ||||
Stated contractual interest rate on note | 4.00% | 4.00% | 4.00% | |
1.25% notes due 2017 (1.25% 2017 Notes) | Notes Payable [Member] | ||||
Derivative instruments (Textual) [Abstract] | ||||
Stated contractual interest rate on note | 1.25% | |||
2.20% notes due 2019 (2.20% 2019 Notes) [Member] | Notes Payable [Member] | ||||
Derivative instruments (Textual) [Abstract] | ||||
Stated contractual interest rate on note | 2.20% | |||
3.45% notes due 2020 (3.45% 2020 Notes) [Member] | Notes Payable [Member] | ||||
Derivative instruments (Textual) [Abstract] | ||||
Stated contractual interest rate on note | 3.45% | 3.45% | ||
4.10% notes due 2021 (4.10% 2021 Notes) [Member] | ||||
Derivative instruments (Textual) [Abstract] | ||||
Stated contractual interest rate on note | 4.10% | |||
4.10% notes due 2021 (4.10% 2021 Notes) [Member] | Notes Payable [Member] | ||||
Derivative instruments (Textual) [Abstract] | ||||
Stated contractual interest rate on note | 4.10% | 4.10% | ||
3.875% notes due 2021 (3.875% 2021 Notes) [Member] | ||||
Derivative instruments (Textual) [Abstract] | ||||
Stated contractual interest rate on note | 3.88% | |||
3.875% notes due 2021 (3.875% 2021 Notes) [Member] | Notes Payable [Member] | ||||
Derivative instruments (Textual) [Abstract] | ||||
Stated contractual interest rate on note | 3.88% | 3.88% | ||
3.625% notes due 2022 (3.625% 2022 Notes) [Member] | ||||
Derivative instruments (Textual) [Abstract] | ||||
Stated contractual interest rate on note | 3.63% | |||
3.625% notes due 2022 (3.625% 2022 Notes) [Member] | Notes Payable [Member] | ||||
Derivative instruments (Textual) [Abstract] | ||||
Stated contractual interest rate on note | 3.63% | 3.63% | 3.63% | |
4.85% notes due 2014 (4.85% 2014 Notes) [Member] | ||||
Derivative instruments (Textual) [Abstract] | ||||
Stated contractual interest rate on note | 4.85% | |||
4.85% notes due 2014 (4.85% 2014 Notes) [Member] | Notes Payable [Member] | ||||
Derivative instruments (Textual) [Abstract] | ||||
Stated contractual interest rate on note | 4.85% | 4.85% | ||
5.85% notes due 2017 (5.85% 2017 Notes) [Member] | ||||
Derivative instruments (Textual) [Abstract] | ||||
Stated contractual interest rate on note | 5.85% | |||
5.85% notes due 2017 (5.85% 2017 Notes) [Member] | Notes Payable [Member] | ||||
Derivative instruments (Textual) [Abstract] | ||||
Stated contractual interest rate on note | 5.85% | 5.85% | ||
6.15% notes due 2018 (6.15% 2018 Notes) | ||||
Derivative instruments (Textual) [Abstract] | ||||
Stated contractual interest rate on note | 6.15% | |||
6.15% notes due 2018 (6.15% 2018 Notes) | Notes Payable [Member] | ||||
Derivative instruments (Textual) [Abstract] | ||||
Stated contractual interest rate on note | 6.15% | 6.15% | ||
5.70% notes due 2019 (5.70% 2019 Notes) [Member] | ||||
Derivative instruments (Textual) [Abstract] | ||||
Stated contractual interest rate on note | 5.70% | |||
5.70% notes due 2019 (5.70% 2019 Notes) [Member] | Notes Payable [Member] | ||||
Derivative instruments (Textual) [Abstract] | ||||
Stated contractual interest rate on note | 5.70% | 5.70% | ||
Foreign currency option contracts [Member] | Derivatives designated as hedging instrument [Member] | ||||
Derivative instruments (Textual) [Abstract] | ||||
Notional amount | 271,000,000 | 516,000,000 | 200,000,000 | |
Foreign currency and cross currency swap contracts [Member] | ||||
Derivative instruments (Textual) [Abstract] | ||||
Amounts expected to be reclassified from accumulated other comprehensive income into earnings over the next 12 months - gains on foreign currency and cross currency swap | 161,000,000 | |||
Forward interest rate contracts [Member] | ||||
Derivative instruments (Textual) [Abstract] | ||||
Amounts expected to be reclassified from accumulated other comprehensive income into earnings over the next 12 months - gain (loss) | -1,000,000 | |||
Interest rate swap [Member] | ||||
Derivative instruments (Textual) [Abstract] | ||||
Notional amount | 3,600,000,000 | |||
Interest rate swap [Member] | Derivatives designated as hedging instrument [Member] | ||||
Derivative instruments (Textual) [Abstract] | ||||
Notional amount | 2,250,000,000 | 4,400,000,000 | 3,600,000,000 | |
Rate adjustment to LIBOR on Interest Rate Swap Agreements [Member] | ||||
Derivative instruments (Textual) [Abstract] | ||||
Derivative lower range variable interest rate | 0.30% | |||
Derivative higher range variable interest rate | 2.60% | |||
Rate adjustment to LIBOR on Interest Rate Swap Agreements [Member] | Three-Month London Interbank Offered Rate (LIBOR) [Member] | ||||
Derivative instruments (Textual) [Abstract] | ||||
Derivative lower range variable interest rate | 0.40% | 1.10% | ||
Derivative higher range variable interest rate | 0.60% | 2.00% | ||
Foreign currency forward contracts [Member] | Derivatives designated as hedging instrument [Member] | ||||
Derivative instruments (Textual) [Abstract] | ||||
Notional amount | 3,800,000,000 | 4,000,000,000 | 3,700,000,000 | |
Foreign currency forward contracts [Member] | Derivatives not designated as hedging instrument [Member] | ||||
Derivative instruments (Textual) [Abstract] | ||||
Notional amount | 875,000,000 | $999,000,000 | $629,000,000 |
Contingencies_and_commitments_1
Contingencies and commitments (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Minimum future rental commitments under non-cancelable operating leases | |
2015 | $135 |
2016 | 168 |
2017 | 155 |
2018 | 143 |
2019 | 139 |
Thereafter | 294 |
Total minimum operating lease commitments | $1,034 |
Contingencies_and_commitments_2
Contingencies and commitments (Details Textual) (USD $) | 12 Months Ended | 3 Months Ended | 1 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Sep. 16, 2013 | Mar. 13, 2015 |
patent | plaintiffs | motion | ||||
Loss Contingencies [Line Items] | ||||||
Future rental commitments for abandoned leases | $272 | 272 | ||||
Rental expense on operating leases | $126 | $125 | $117 | |||
Sanofi/Regeneron Patent Litigation [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Number of patents allegedly infringed upon | 7 | |||||
In re Amgen Inc. Securities Litigation [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Number of stockholder complaints | 6 | |||||
Larson v. Sharer, et al [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Number of stockholder complaints | 3 | |||||
Federal Derivative Litigation [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Length of time Federal Derivative Litigation cases stayed after Amgen Inc. Securities Litigation | 30 days | |||||
Ramos v. Amgen Inc., et al. [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Number of new defendants | 4 | |||||
Harris, et. al. v. Amgen Inc. [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Number of additional plaintiffs | 2 | |||||
Onyx Pharmaceuticals, Inc. [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Number of plaintiffs | 9 | |||||
Onyx Pharmaceuticals, Inc. [Member] | Superior Court State of California [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Number of purported class actions | 7 | |||||
Scenario, Forecast [Member] | Sandoz Filgrastim Litigation [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Number of motions to be heard | 3 |
Segment_information_Details
Segment information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues [Abstract] | |||||||||||
Product sales | $5,174 | $4,848 | $4,949 | $4,356 | $4,799 | $4,647 | $4,595 | $4,151 | $19,327 | $18,192 | $16,639 |
Other revenues | 736 | 484 | 626 | ||||||||
Total revenues | 20,063 | 18,676 | 17,265 | ||||||||
Neulasta [Member] | |||||||||||
Revenues [Abstract] | |||||||||||
Product sales | 4,596 | 4,392 | 4,092 | ||||||||
NEUPOGEN [Member] | |||||||||||
Revenues [Abstract] | |||||||||||
Product sales | 1,159 | 1,398 | 1,260 | ||||||||
ENBREL [Member] | |||||||||||
Revenues [Abstract] | |||||||||||
Product sales | 4,688 | 4,551 | 4,236 | ||||||||
XGEVA [Member] | |||||||||||
Revenues [Abstract] | |||||||||||
Product sales | 1,221 | 1,019 | 748 | ||||||||
Prolia [Member] | |||||||||||
Revenues [Abstract] | |||||||||||
Product sales | 1,030 | 744 | 472 | ||||||||
EPOGEN [Member] | |||||||||||
Revenues [Abstract] | |||||||||||
Product sales | 2,031 | 1,953 | 1,941 | ||||||||
Aranesp [Member] | |||||||||||
Revenues [Abstract] | |||||||||||
Product sales | 1,930 | 1,911 | 2,040 | ||||||||
Sensipar Mimpara [Member] | |||||||||||
Revenues [Abstract] | |||||||||||
Product sales | 1,158 | 1,089 | 950 | ||||||||
Vectibix [Member] | |||||||||||
Revenues [Abstract] | |||||||||||
Product sales | 505 | 389 | 359 | ||||||||
Nplate [Member] | |||||||||||
Revenues [Abstract] | |||||||||||
Product sales | 469 | 427 | 368 | ||||||||
Kyprolis [Member] | |||||||||||
Revenues [Abstract] | |||||||||||
Product sales | 331 | 73 | 0 | ||||||||
BLINCYTO [Member] | |||||||||||
Revenues [Abstract] | |||||||||||
Product sales | 3 | 0 | 0 | ||||||||
Other [Member] | |||||||||||
Revenues [Abstract] | |||||||||||
Product sales | $206 | $246 | $173 |
Segment_information_Details_1
Segment information (Details 1) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Geographical Information With Respect To Revenues [Abstract] | |||
Revenues | $20,063 | $18,676 | $17,265 |
United States [Member] | |||
Geographical Information With Respect To Revenues [Abstract] | |||
Revenues | 15,396 | 14,480 | 13,415 |
Rest of the world (ROW) [Member] | |||
Geographical Information With Respect To Revenues [Abstract] | |||
Revenues | $4,667 | $4,196 | $3,850 |
Segment_information_Details_2
Segment information (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Long Lived Assets [Abstract] | ||
Total long-lived assets | $5,223 | $5,349 |
United States [Member] | ||
Long Lived Assets [Abstract] | ||
Total long-lived assets | 2,544 | 2,772 |
Puerto Rico [Member] | ||
Long Lived Assets [Abstract] | ||
Total long-lived assets | 1,771 | 1,822 |
Rest of the world (ROW) [Member] | ||
Long Lived Assets [Abstract] | ||
Total long-lived assets | $908 | $755 |
Segment_information_Details_3
Segment information (Details 3) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues Earned from Major Customers [Abstract] | |||
Revenues | $20,063 | $18,676 | $17,265 |
AmerisourceBergen Corporation [Member] | |||
Revenues Earned from Major Customers [Abstract] | |||
Revenues | 9,142 | 8,527 | 7,556 |
Gross product sales to major customer (as defined) as a percentage of total gross revenues | 34.00% | 35.00% | 34.00% |
Gross product sales to major customer (as defined) as a percentage of U.S. gross product sales | 43.00% | 44.00% | 43.00% |
McKesson Corporation [Member] | |||
Revenues Earned from Major Customers [Abstract] | |||
Revenues | 8,011 | 6,440 | 5,898 |
Gross product sales to major customer (as defined) as a percentage of total gross revenues | 30.00% | 27.00% | 27.00% |
Gross product sales to major customer (as defined) as a percentage of U.S. gross product sales | 35.00% | 32.00% | 32.00% |
Cardinal Health, Inc. [Member] | |||
Revenues Earned from Major Customers [Abstract] | |||
Revenues | $3,407 | $3,209 | $3,245 |
Gross product sales to major customer (as defined) as a percentage of total gross revenues | 13.00% | 13.00% | 15.00% |
Gross product sales to major customer (as defined) as a percentage of U.S. gross product sales | 16.00% | 17.00% | 19.00% |
Segment_information_Details_Te
Segment information (Details Textual) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
customer | customer | customer | |
segment | |||
Segment Reporting Information [Line Items] | |||
Number of business segment | 1 | ||
Number of major customers (as defined) accounting for more than 10% of total revenue | 3 | 3 | 3 |
Threshold as a percentage of total revenues for determining a major customer for additional disclosures | 10.00% | 10.00% | 10.00% |
Percentage of worldwide gross revenues derived from major customers (as defined) on a combined basis | 77.00% | ||
Percentage of United States gross product sales derived from major customers (as defined) on a combined basis | 94.00% | ||
Major customers (as defined) accounting for more than 10% of gross trade receivables | 3 | 3 | |
Combined trade receivables for all major customers (as defined) as a percentage of net trade receivables | 69.00% | 63.00% | |
Percentage of net trade receivables due from customers located outside the United States, primarily in Europe | 30.00% | 35.00% | |
AmerisourceBergen Corporation [Member] | |||
Segment Reporting Information [Line Items] | |||
Amount due from major customer (as defined) as a percentage of gross trade receivables | exceeded 10% | exceeded 10% | |
McKesson Corporation [Member] | |||
Segment Reporting Information [Line Items] | |||
Amount due from major customer (as defined) as a percentage of gross trade receivables | exceeded 10% | exceeded 10% | |
Cardinal Health, Inc. [Member] | |||
Segment Reporting Information [Line Items] | |||
Amount due from major customer (as defined) as a percentage of gross trade receivables | exceeded 10% | exceeded 10% |
Quarterly_financial_data_unaud2
Quarterly financial data (unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Product sales | $5,174 | $4,848 | $4,949 | $4,356 | $4,799 | $4,647 | $4,595 | $4,151 | $19,327 | $18,192 | $16,639 |
Gross profit from product sales | 3,991 | 3,780 | 3,868 | 3,266 | 3,770 | 3,859 | 3,810 | 3,407 | |||
Net income | $1,294 | $1,244 | $1,547 | $1,073 | $1,021 | $1,368 | $1,258 | $1,434 | $5,158 | $5,081 | $4,345 |
Earnings per share: | |||||||||||
Basic (in usd per share) | $1.70 | $1.63 | $2.04 | $1.42 | $1.35 | $1.81 | $1.67 | $1.91 | $6.80 | $6.75 | $5.61 |
Diluted (in usd per share) | $1.68 | $1.61 | $2.01 | $1.40 | $1.33 | $1.79 | $1.65 | $1.88 | $6.70 | $6.64 | $5.52 |
SCHEDULE_II_VALUATION_AND_QUAL1
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for doubtful accounts [Roll Forward] | |||
Balance at beginning of period | $59 | $61 | $54 |
Additions charged to costs and expenses | 3 | 5 | 7 |
Other additions | 0 | 0 | 0 |
Deductions | 12 | 7 | 0 |
Balance at end of period | $50 | $59 | $61 |