Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 22, 2021 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-37702 | |
Entity Registrant Name | Amgen Inc. | |
Entity Central Index Key | 0000318154 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 95-3540776 | |
Entity Address, Address Line One | One Amgen Center Drive | |
Entity Address, City or Town | Thousand Oaks | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 91320-1799 | |
City Area Code | 805 | |
Local Phone Number | 447-1000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 574,553,986 | |
The NASDAQ Global Select Market [Member] | Common Stock [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common stock, $0.0001 par value | |
Trading Symbol | AMGN | |
Security Exchange Name | NASDAQ | |
The NASDAQ Global Select Market [Member] | 1.250% Senior Notes Due 2022 [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.250% Senior Notes Due 2022 | |
Trading Symbol | AMGN22 | |
Security Exchange Name | NASDAQ | |
The NASDAQ Global Select Market [Member] | 2.00% Senior Notes Due 2026 [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 2.00% Senior Notes Due 2026 | |
Trading Symbol | AMGN26 | |
Security Exchange Name | NASDAQ |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 1,646 | $ 1,825 |
Other comprehensive income (loss), net of reclassification adjustments and taxes: | ||
Losses on foreign currency translation | (39) | (52) |
Gains (losses) on cash flow hedges | 190 | (61) |
Losses on available-for-sale securities | 0 | (19) |
Other gains (losses) | 1 | (2) |
Other comprehensive income (loss), net of taxes | 152 | (134) |
Comprehensive income | $ 1,798 | $ 1,691 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues: | ||
Total revenues | $ 5,901 | $ 6,161 |
Operating expenses: | ||
Cost of sales | 1,490 | 1,513 |
Research and development | 967 | 952 |
Selling, general and administrative | 1,254 | 1,316 |
Other | 61 | 25 |
Total operating expenses | 3,772 | 3,806 |
Operating income | 2,129 | 2,355 |
Interest expense, net | (285) | (346) |
Other income, net | 13 | 11 |
Income before income taxes | 1,857 | 2,020 |
Provision for income taxes | 211 | 195 |
Net income | $ 1,646 | $ 1,825 |
Earnings per share: | ||
Basic (in usd per share) | $ 2.85 | $ 3.09 |
Diluted (in usd per share) | $ 2.83 | $ 3.07 |
Shares used in calculation of earnings per share: | ||
Basic (in shares) | 577 | 590 |
Diluted (in shares) | 581 | 594 |
Product sales [Member] | ||
Revenues: | ||
Product sales | $ 5,592 | $ 5,894 |
Other revenues [Member] | ||
Revenues: | ||
Total revenues | $ 309 | $ 267 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 6,112 | $ 6,266 |
Marketable securities | 4,454 | 4,381 |
Trade receivables, net | 4,423 | 4,525 |
Inventories | 4,017 | 3,893 |
Other current assets | 2,293 | 2,079 |
Total current assets | 21,299 | 21,144 |
Property, plant and equipment, net | 4,855 | 4,889 |
Intangible assets, net | 15,947 | 16,587 |
Goodwill | 14,673 | 14,689 |
Other assets | 5,765 | 5,639 |
Total assets | 62,539 | 62,948 |
Current liabilities: | ||
Accounts payable | 1,396 | 1,421 |
Accrued liabilities | 9,917 | 10,141 |
Current portion of long-term debt | 1,556 | 91 |
Total current liabilities | 12,869 | 11,653 |
Long-term debt | 31,129 | 32,895 |
Long-term tax liabilities | 7,037 | 6,968 |
Other noncurrent liabilities | 2,170 | 2,023 |
Contingencies and commitments | ||
Stockholders’ equity: | ||
Common stock and additional paid-in capital; $0.0001 par value; 2,750.0 shares authorized; outstanding—575.3 shares in 2021 and 578.3 shares in 2020 | 31,806 | 31,802 |
Accumulated deficit | (21,639) | (21,408) |
Accumulated other comprehensive loss | (833) | (985) |
Total stockholders’ equity | 9,334 | 9,409 |
Total liabilities and stockholders’ equity | $ 62,539 | $ 62,948 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock and additional paid-in capital, par value (in usd per share) | $ 0.0001 | $ 0.0001 |
Common stock and additional paid-in capital, shares authorized | 2,750 | 2,750 |
Common stock and additional paid-in capital, shares outstanding | 575.3 | 578.3 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Cumulative effect of changes in accounting principles, net of tax | Number of shares of common stock [Member] | Common stock and additional paid-in capital [Member] | Accumulated deficit [Member] | Accumulated deficit [Member]Cumulative effect of changes in accounting principles, net of tax | Accumulated other comprehensive loss [Member] |
Beginning Balance, Shares at Dec. 31, 2019 | 591.4 | ||||||
Balance as of beginning of period at Dec. 31, 2019 | $ 9,673 | $ (2) | $ 31,531 | $ (21,330) | $ (2) | $ (528) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income for basic and diluted EPS | 1,825 | 1,825 | |||||
Other comprehensive income (loss), net of taxes | (134) | (134) | |||||
Dividends declared on common stock | (938) | (938) | |||||
Issuance of common stock in connection with the Company’s equity award programs, Shares | 0.9 | ||||||
Issuance of common stock in connection with the Company’s equity award programs | 10 | 10 | |||||
Stock-based compensation expense | 52 | 52 | |||||
Tax impact related to employee stock-based compensation expense | (68) | (68) | |||||
Repurchases of common stock, Shares | (4.3) | ||||||
Repurchases of common stock | (933) | (933) | |||||
Ending Balance, Shares at Mar. 31, 2020 | 588 | ||||||
Balance as of end of period at Mar. 31, 2020 | $ 9,485 | 31,525 | (21,378) | (662) | |||
Beginning Balance, Shares at Dec. 31, 2020 | 578.3 | 578.3 | |||||
Balance as of beginning of period at Dec. 31, 2020 | $ 9,409 | 31,802 | (21,408) | (985) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income for basic and diluted EPS | 1,646 | 1,646 | |||||
Other comprehensive income (loss), net of taxes | 152 | 152 | |||||
Dividends declared on common stock | (1,012) | (1,012) | |||||
Issuance of common stock in connection with the Company’s equity award programs, Shares | 0.7 | ||||||
Issuance of common stock in connection with the Company’s equity award programs | 6 | 6 | |||||
Stock-based compensation expense | 57 | 57 | |||||
Tax impact related to employee stock-based compensation expense | (59) | (59) | |||||
Repurchases of common stock, Shares | (3.7) | ||||||
Repurchases of common stock | $ (865) | (865) | |||||
Ending Balance, Shares at Mar. 31, 2021 | 575.3 | 575.3 | |||||
Balance as of end of period at Mar. 31, 2021 | $ 9,334 | $ 31,806 | $ (21,639) | $ (833) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 1 Months Ended | 3 Months Ended | ||
Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||
Common stock, dividends declared per share (in usd per share) | $ 1.76 | $ 1.76 | $ 1.76 | $ 1.60 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 1,646 | $ 1,825 |
Depreciation, amortization and other | 841 | 897 |
Deferred income taxes | (91) | (84) |
Other items, net | 79 | 107 |
Changes in operating assets and liabilities, net of acquisition: | ||
Trade receivables, net | 91 | (955) |
Inventories | (126) | (113) |
Other assets | (146) | 319 |
Accounts payable | (29) | (25) |
Accrued income taxes, net | 52 | 137 |
Long-term tax liabilities | 69 | 74 |
Other liabilities | (282) | (48) |
Net cash provided by operating activities | 2,104 | 2,134 |
Cash flows from investing activities: | ||
Purchases of marketable securities | (7,597) | (129) |
Proceeds from sales of marketable securities | 3,999 | 2,574 |
Proceeds from maturities of marketable securities | 3,524 | 113 |
Purchases of property, plant and equipment | (166) | (142) |
Purchases of equity method investments | 0 | (2,645) |
Other | (79) | (1) |
Net cash used in investing activities | (319) | (230) |
Cash flows from financing activities: | ||
Proceeds from Issuance of Long-term Debt | 0 | 4,963 |
Repayment of debt | 0 | (3,250) |
Repurchases of common stock | (871) | (961) |
Dividends paid | (1,016) | (945) |
Other | (52) | (61) |
Net cash used in financing activities | (1,939) | (254) |
(Decrease) increase in cash and cash equivalents | (154) | 1,650 |
Cash and cash equivalents at beginning of period | 6,266 | 6,037 |
Cash and cash equivalents at end of period | $ 6,112 | $ 7,687 |
Summary of significant accounti
Summary of significant accounting policies | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | Summary of significant accounting policies Business Amgen Inc. (including its subsidiaries, referred to as “Amgen,” “the Company,” “we,” “our” or “us”) is a global biotechnology pioneer that discovers, develops, manufactures and delivers innovative human therapeutics. We operate in one business segment: human therapeutics. Basis of presentation The financial information for the three months ended March 31, 2021 and 2020, is unaudited but includes all adjustments (consisting of only normal, recurring adjustments unless otherwise indicated), which Amgen considers necessary for a fair presentation of its condensed consolidated results of operations for those periods. Interim results are not necessarily indicative of results for the full fiscal year. The condensed consolidated financial statements should be read in conjunction with our consolidated financial statements and the notes thereto contained in our Annual Report on Form 10-K for the year ended December 31, 2020. Principles of consolidation The condensed consolidated financial statements include the accounts of Amgen as well as its majority-owned subsidiaries. We do not have any significant interests in any variable interest entities. All material intercompany transactions and balances have been eliminated in consolidation. Use of estimates The preparation of condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results may differ from those estimates. Property, plant and equipment, net Property, plant and equipment is recorded at historical cost, net of accumulated depreciation and amortization of $9.1 billion and $9.0 billion as of March 31, 2021 and December 31, 2020, respectively. Recent accounting pronouncements In March 2020, the Financial Accounting Standards Board (FASB) issued a new accounting standard to ease the financial reporting burdens caused by the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates, commonly referred to as reference rate reform. The new standard provides temporary optional expedients and exceptions to current GAAP guidance on contract modifications and hedge accounting. Specifically, a modification to transition to an alternative reference rate is treated as an event that does not require contract remeasurement or reassessment of a previous accounting treatment. Moreover, for all types of hedging relationships, an entity is permitted to change the reference rate without having to dedesignate the hedging relationship. The standard is generally effective for all contract modifications made and hedging relationships evaluated through December 31, 2022. In January 2021, the FASB issued a new accounting standard to expand on the scope of the original March 2020 standard to include derivative instruments on discounting transactions. We are currently evaluating the impact that both standards will have on our condensed consolidated financial statements. |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues 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. Revenues by product and by geographic area, based on customers’ locations, are presented below. The majority of rest-of-world (ROW) revenues relates to products sold in Europe. Revenues were as follows (in millions): Three months ended March 31, 2021 2020 U.S. ROW Total U.S. ROW Total Enbrel ® (etanercept) $ 894 $ 30 $ 924 $ 1,117 $ 36 $ 1,153 Prolia ® (denosumab) 501 257 758 422 232 654 Neulasta ® (pegfilgrastim) 421 61 482 534 75 609 Otezla ® (apremilast) 366 110 476 377 102 479 XGEVA ® (denosumab) 334 134 468 355 126 481 Aranesp ® (darbepoetin alfa) 125 230 355 175 247 422 Repatha ® (evolocumab) 139 147 286 124 105 229 KYPROLIS ® (carfilzomib) 159 92 251 187 93 280 Other products 964 628 1,592 988 599 1,587 Total product sales (1) $ 3,903 $ 1,689 5,592 $ 4,279 $ 1,615 5,894 Other revenues 309 267 Total revenues $ 5,901 $ 6,161 ____________ |
Income taxes
Income taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes The effective tax rates for the three months ended March 31, 2021 and 2020, were 11.4% and 9.7%, respectively. The increase in our effective tax rate for the three months ended March 31, 2021 was primarily due to changes in the jurisdictional mix of earnings. The effective tax rates differ from the federal statutory rate primarily as a result of foreign earnings from the Company’s operations conducted in Puerto Rico, a territory of the United States that is treated as a foreign jurisdiction for U.S. tax purposes, and are subject to a tax incentive grant through 2035. In addition, the Company’s operations conducted in Singapore are subject to a tax incentive grant through 2034. These earnings are also subject to U.S. tax at a reduced rate of 10.5%. The U.S. territory of Puerto Rico imposes an excise tax on the gross intercompany purchase price of goods and services from our manufacturer in Puerto Rico. The rate of 4% is effective through December 31, 2027. 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. 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 examined by tax authorities in those jurisdictions. Significant disputes may arise with tax authorities involving issues regarding the timing and amount of deductions, the use of tax credits and allocations of income and expenses among various tax jurisdictions because of differing interpretations of tax laws, regulations and relevant facts. In 2017, we received a Revenue Agent Report (RAR) and a modified RAR from the Internal Revenue Service (IRS) for the years 2010, 2011 and 2012 proposing significant adjustments that primarily relate to the allocation of profits between certain of our entities in the United States and the U.S. territory of Puerto Rico. We disagree with the proposed adjustments and calculations and have been pursuing resolution with the IRS administrative appeals office. However, we have been unable to reach resolution at the administrative appeals level. We anticipate that we will receive a Notice of Deficiency which we will vigorously contest through the judicial process. In addition, in 2020, we received an RAR and a modified RAR from the IRS for the years 2013, 2014 and 2015 also proposing significant adjustments that primarily relate to the allocation of profits between certain of our entities in the United States and the U.S. territory of Puerto Rico, similar to those proposed for the years 2010, 2011 and 2012. We disagree with the proposed adjustments and calculations and are pursuing resolution with the IRS administrative appeals office. We are currently under examination by the IRS for the years 2016, 2017 and 2018. We are also currently under examination by a number of other state and foreign tax jurisdictions. Final resolution of these complex matters is not likely within the next 12 months. We believe our accrual for income tax liabilities is appropriate based on past experience, interpretations of tax law, application of the tax law to our facts and judgments about potential actions by tax authorities; however, due to the complexity of the provision for income taxes and uncertain resolution of these matters, the ultimate outcome of any tax matters may result in payments substantially greater than amounts accrued and could have a material adverse impact on our consolidated financial statements. We are no longer subject to U.S. federal income tax examinations for the years ended on or before December 31, 2009. During the three months ended March 31, 2021, the gross amounts of our unrecognized tax benefits (UTBs) increased $60 million as a result of tax positions taken during the current year. Substantially all of the UTBs as of March 31, 2021, if recognized, would affect our effective tax rate. |
Earnings per share
Earnings per share | 3 Months Ended |
Mar. 31, 2021 | |
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 primarily include shares that may be issued under our stock option, restricted stock and performance unit award programs (collectively, dilutive securities), as determined by using the treasury stock method. The computations for basic and diluted EPS were as follows (in millions, except per-share data): Three months ended 2021 2020 Income (Numerator): Net income for basic and diluted EPS $ 1,646 $ 1,825 Shares (Denominator): Weighted-average shares for basic EPS 577 590 Effect of dilutive securities 4 4 Weighted-average shares for diluted EPS 581 594 Basic EPS $ 2.85 $ 3.09 Diluted EPS $ 2.83 $ 3.07 For the three months ended March 31, 2021 and 2020, the number of antidilutive employee stock-based awards excluded from the computation of diluted EPS was not significant. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Available-for-sale investments The amortized cost, gross unrealized gains, gross unrealized losses and fair values of interest-bearing securities, which are considered available-for-sale, by type of security were as follows (in millions): Types of securities as of March 31, 2021 Amortized Gross Gross Fair U.S. Treasury notes $ 103 $ 1 $ — $ 104 U.S. Treasury bills 4,949 — — 4,949 Money market mutual funds 4,668 — — 4,668 Other short-term interest-bearing securities — — — — Total interest-bearing securities $ 9,720 $ 1 $ — $ 9,721 Types of securities as of December 31, 2020 Amortized Gross Gross Fair U.S. Treasury notes $ 129 $ 1 $ — $ 130 U.S. Treasury bills 4,948 — — 4,948 Money market mutual funds 4,765 — — 4,765 Other short-term interest-bearing securities 2 — — 2 Total interest-bearing securities $ 9,844 $ 1 $ — $ 9,845 The fair values of interest-bearing securities by location in the Condensed Consolidated Balance Sheets were as follows (in millions): Condensed Consolidated Balance Sheets locations March 31, 2021 December 31, 2020 Cash and cash equivalents $ 5,267 $ 5,464 Marketable securities 4,454 4,381 Total interest-bearing securities $ 9,721 $ 9,845 Cash and cash equivalents in the above table excludes bank account cash of $845 million and $802 million as of March 31, 2021 and December 31, 2020, respectively. The fair values of available-for-sale investments by contractual maturity were as follows (in millions): Contractual maturities March 31, 2021 December 31, 2020 Maturing in one year or less $ 9,705 $ 9,795 Maturing after one year through three years 16 50 Total available-for-sale investments $ 9,721 $ 9,845 For the three months ended March 31, 2021, realized gains and losses on interest-bearing securities were not material. For the three months ended March 31, 2020, realized gains and losses on interest-bearing securities were $37 million and $4 million, respectively. Realized gains and losses on interest-bearing securities are recorded in Other income, net, in the Condensed Consolidated Statements of Income. The cost of securities sold is based on the specific-identification method. The primary objective of our investment portfolio is to maintain 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 primarily issued by institutions with investment-grade credit ratings, and it places restrictions on maturities and concentration by asset class and issuer. Equity securities We held investments in equity securities with readily determinable fair values (publicly traded securities) of $394 million and $477 million as of March 31, 2021 and December 31, 2020, respectively, which are included in Other assets in the Condensed Consolidated Balance Sheets. For the three months ended March 31, 2021 and 2020, net unrealized losses on publicly traded securities were $56 million and $76 million, respectively. Realized gains and losses on publicly traded securities for the three months ended March 31, 2021 and 2020, were not material. We held investments of $204 million and $203 million in equity securities without readily determinable fair values as of March 31, 2021 and December 31, 2020, respectively, which are included in Other assets in the Condensed Consolidated Balance Sheets. Gains and losses recognized on these securities, including adjustments to the carrying values of these securities, were not material for the three months ended March 31, 2021 and 2020. Equity method investments Limited partnerships We held limited partnership investments of $676 million and $496 million as of March 31, 2021 and December 31, 2020, respectively, which are included in Other assets in the Condensed Consolidated Balance Sheets. These investments, primarily investment funds of early-stage biotechnology companies, are accounted for by using the equity method of accounting and are measured by using our proportionate share of the net asset values of the underlying investments held by the limited partnerships as a practical expedient. These investments are typically redeemable only through distributions upon liquidation of the underlying assets. As of March 31, 2021, unfunded additional commitments to be made for these investments during the next several years were not material. For the three months ended March 31, 2021 and 2020, net gains recognized from our limited partnership investments were $208 million and $20 million, respectively. BeiGene As of March 31, 2021, we had an ownership interest of approximately 20.4% in BeiGene, which is included in Other assets in the Condensed Consolidated Balance Sheets and accounted for under the equity method of accounting. We amortize the difference between the fair value of equity securities acquired and our proportionate share of the carrying value of the underlying net assets of BeiGene over the useful lives of the assets that gave rise to this basis difference. This amortization, as well as our share of the results of operations of BeiGene, are included in Other income, net, in the Condensed Consolidated Statements of Income one quarter in arrears, which began in the second quarter of 2020. During the three months ended March 31, 2021, the carrying value of our equity investment was reduced by our share of BeiGene’s net losses of $97 million and amortization of the basis difference of $42 million. In addition, during the three months ended March 31, 2021, the carrying value increased by $17 million from the impact of BeiGene ownership transactions . As of March 31, 2021, the carrying value and fair value of our investment in BeiGene totaled $2.8 billion and $6.5 billion, respectively. As of March 31, 2021, we believe the carrying value of our equity investment in BeiGene is fully recoverable. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following (in millions): March 31, 2021 December 31, 2020 Raw materials $ 605 $ 486 Work in process 2,463 2,437 Finished goods 949 970 Total inventories $ 4,017 $ 3,893 |
Goodwill and other intangible a
Goodwill and other intangible assets | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and other intangible assets | Goodwill and other intangible assets Goodwill The change in the carrying amount of goodwill was as follows (in millions): Three months ended Beginning balance $ 14,689 Currency translation adjustment (16) Ending balance $ 14,673 Other intangible assets Other intangible assets consisted of the following (in millions): March 31, 2021 December 31, 2020 Gross Accumulated Other intangible Gross Accumulated Other intangible Finite-lived intangible assets: Developed-product-technology rights $ 25,578 $ (11,114) $ 14,464 $ 25,591 $ (10,564) $ 15,027 Licensing rights 3,766 (2,842) 924 3,743 (2,791) 952 Marketing-related rights 1,364 (1,059) 305 1,367 (1,041) 326 Research and development technology rights 1,301 (1,077) 224 1,317 (1,065) 252 Total finite-lived intangible assets 32,009 (16,092) 15,917 32,018 (15,461) 16,557 Indefinite-lived intangible assets: In-process research and development 30 — 30 30 — 30 Total other intangible assets $ 32,039 $ (16,092) $ 15,947 $ 32,048 $ (15,461) $ 16,587 Developed-product-technology rights consists of rights related to marketed products. Licensing rights primarily consists of contractual rights to receive future milestone, royalty and profit-sharing payments; capitalized payments to third parties for milestones related to regulatory approvals to commercialize products; and up-front payments associated with royalty obligations for marketed products. Marketing-related rights primarily consists of rights related to the sale and distribution of marketed products. Research and development (R&D) technology rights pertains to technologies used in R&D that have alternative future uses. In-process research and development (IPR&D) consists of R&D projects acquired in a business combination that are not complete at the time of acquisition due to remaining technological risks and/or lack of receipt of required regulatory approvals. We review IPR&D projects for impairment annually, whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable and upon the establishment of technological feasibility or regulatory approval. During the three months ended March 31, 2021 and 2020, we recognized amortization associated with our finite-lived intangible assets of $654 million and $709 million, respectively. Amortization of intangible assets is primarily included in Cost of sales in the Condensed Consolidated Statements of Income. The total estimated amortization for our finite-lived intangible assets for the remaining nine months ending December 31, 2021, and the years ending December 31, 2022, 2023, 2024, 2025 and 2026, are $1.9 billion, $2.5 billion, $2.4 billion, $2.4 billion, $2.2 billion and $1.8 billion, respectively. |
Financing arrangements
Financing arrangements | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Financing arrangements | Financing arrangements Our borrowings consisted of the following (in millions): March 31, 2021 December 31, 2020 1.25% €1,250 million notes due 2022 (1.25% 2022 euro Notes) $ 1,466 $ 1,527 2.70% notes due 2022 (2.70% 2022 Notes) 500 500 2.65% notes due 2022 (2.65% 2022 Notes) 1,500 1,500 3.625% notes due 2022 (3.625% 2022 Notes) 750 750 0.41% CHF700 million bonds due 2023 (0.41% 2023 Swiss franc Bonds) 742 791 2.25% notes due 2023 (2.25% 2023 Notes) 750 750 3.625% notes due 2024 (3.625% 2024 Notes) 1,400 1,400 1.90% notes due 2025 (1.90% 2025 Notes) 500 500 3.125% notes due 2025 (3.125% 2025 Notes) 1,000 1,000 2.00% €750 million notes due 2026 (2.00% 2026 euro Notes) 880 916 2.60% notes due 2026 (2.60% 2026 Notes) 1,250 1,250 5.50% £475 million notes due 2026 (5.50% 2026 pound sterling Notes) 655 649 2.20% notes due 2027 (2.20% 2027 Notes) 1,750 1,750 3.20% notes due 2027 (3.20% 2027 Notes) 1,000 1,000 4.00% £700 million notes due 2029 (4.00% 2029 pound sterling Notes) 965 957 2.45% notes due 2030 (2.45% 2030 Notes) 1,250 1,250 2.30% notes due 2031 (2.30% 2031 Notes) 1,250 1,250 6.375% notes due 2037 (6.375% 2037 Notes) 478 478 6.90% notes due 2038 (6.90% 2038 Notes) 254 254 6.40% notes due 2039 (6.40% 2039 Notes) 333 333 3.15% notes due 2040 (3.15% 2040 Notes) 2,000 2,000 5.75% notes due 2040 (5.75% 2040 Notes) 373 373 4.95% notes due 2041 (4.95% 2041 Notes) 600 600 5.15% notes due 2041 (5.15% 2041 Notes) 729 729 5.65% notes due 2042 (5.65% 2042 Notes) 415 415 5.375% notes due 2043 (5.375% 2043 Notes) 185 185 4.40% notes due 2045 (4.40% 2045 Notes) 2,250 2,250 4.563% notes due 2048 (4.563% 2048 Notes) 1,415 1,415 3.375% notes due 2050 (3.375% 2050 Notes) 2,250 2,250 4.663% notes due 2051 (4.663% 2051 Notes) 3,541 3,541 2.77% notes due 2053 (2.77% 2053 Notes) 940 940 Other notes due 2097 100 100 Unamortized bond discounts, premiums and issuance costs, net (1,182) (1,188) Fair value adjustments 391 566 Other 5 5 Total carrying value of debt 32,685 32,986 Less current portion (1,556) (91) Total long-term debt $ 31,129 $ 32,895 There are no material differences between the effective interest rates and coupon rates of any of our borrowings, except for the 4.563% 2048 Notes, the 4.663% 2051 Notes and the 2.77% 2053 Notes, which have effective interest rates of 6.3%, 5.6% and 5.2%, respectively. |
Stockholders' equity
Stockholders' equity | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Stockholders' equity | Stockholders’ equity Stock repurchase program Activity under our stock repurchase program, on a trade date basis, was as follows (in millions): 2021 2020 Shares Dollars Shares Dollars First quarter 3.7 $ 865 4.3 $ 933 In March 2021, our Board of Directors increased the amount authorized under our stock repurchase program by an additional $3.4 billion. As of March 31, 2021, $5.5 billion of authorization remained available under our stock repurchase program. Dividends In March 2021, the Board of Directors declared a quarterly cash dividend of $1.76 per share, which will be paid in June 2021. In December 2020, the Board of Directors declared a quarterly cash dividend of $1.76 per share, which was paid in March 2021. Accumulated other comprehensive income (loss) The components of Accumulated other comprehensive income (loss) (AOCI) were as follows (in millions): Foreign Cash flow Available-for-sale Other AOCI Balance as of December 31, 2020 $ (709) $ (263) $ 1 $ (14) $ (985) Foreign currency translation adjustments (39) — — — (39) Unrealized gains — 108 — — 108 Reclassification adjustments to income — 133 — — 133 Other — — — 1 1 Income taxes — (51) — — (51) Balance as of March 31, 2021 $ (748) $ (73) $ 1 $ (13) $ (833) Reclassifications out of AOCI and into earnings, including the related income tax expenses, were as follows (in millions): Three months ended March 31, Components of AOCI 2021 2020 Condensed Consolidated Cash flow hedges: Foreign currency contract (losses) gains $ (1) $ 49 Product sales Cross-currency swap contract losses (132) (133) Other income, net (133) (84) Income before income taxes 28 18 Provision for income taxes $ (105) $ (66) Net income Available-for-sale securities: Net realized gains $ — $ 33 Other income, net — (7) Provision for income taxes $ — $ 26 Net income |
Fair value measurement
Fair value measurement | 3 Months Ended |
Mar. 31, 2021 | |
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 an 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 an 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 values of each major class of the Company’s financial assets and liabilities measured at fair value on a recurring basis were as follows (in millions): Quoted prices in Significant Significant Fair value measurement as of March 31, 2021, using: Total Assets: Available-for-sale securities: U.S. Treasury notes $ 104 $ — $ — $ 104 U.S. Treasury bills 4,949 — — 4,949 Money market mutual funds 4,668 — — 4,668 Other short-term interest-bearing securities — — — — Equity securities 394 — — 394 Derivatives: Foreign currency contracts — 79 — 79 Cross-currency swap contracts — 153 — 153 Interest rate swap contracts — 33 — 33 Total assets $ 10,115 $ 265 $ — $ 10,380 Liabilities: Derivatives: Foreign currency contracts $ — $ 107 $ — $ 107 Cross-currency swap contracts — 291 — 291 Interest rate swap contracts — 134 — 134 Contingent consideration obligations — — 39 39 Total liabilities $ — $ 532 $ 39 $ 571 Quoted prices in Significant Significant Fair value measurement as of December 31, 2020, using: Total Assets: Available-for-sale securities: U.S. Treasury notes $ 130 $ — $ — $ 130 U.S. Treasury bills 4,948 — — 4,948 Money market mutual funds 4,765 — — 4,765 Other short-term interest-bearing securities — 2 — 2 Equity securities 477 — — 477 Derivatives: Foreign currency contracts — 28 — 28 Cross-currency swap contracts — 255 — 255 Interest rate swap contracts — 66 — 66 Total assets $ 10,320 $ 351 $ — $ 10,671 Liabilities: Derivatives: Foreign currency contracts $ — $ 237 $ — $ 237 Cross-currency swap contracts — 318 — 318 Interest rate swap contracts — 15 — 15 Contingent consideration obligations — — 33 33 Total liabilities $ — $ 570 $ 33 $ 603 Interest-bearing and equity securities 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. Derivatives All of our foreign currency forward derivative contracts have maturities of three years or less, and all are with counterparties that have minimum credit ratings of A– or equivalent by Standard & Poor’s Financial Services LLC (S&P), Moody’s Investors Service, Inc. (Moody’s) or Fitch Ratings, Inc. (Fitch). We estimate the fair values of these contracts by taking into consideration valuations obtained from a third-party valuation service that uses 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 and obligor credit default swap rates. In addition, inputs for our foreign currency option contracts include implied volatility measures. These inputs, when applicable, are at commonly quoted intervals. See Note 11, 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 estimate the fair values of these contracts by taking into consideration valuations obtained from a third-party valuation service that uses 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 11, 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 estimate the fair values of these contracts by using an income-based industry-standard valuation model for which all significant inputs are observable either directly or indirectly. These inputs include LIBOR, swap rates and obligor credit default swap rates. See Note 11, Derivative instruments. During the three months ended March 31, 2021 and 2020, there were no material remeasurements to the fair values of assets and liabilities that are not measured at fair value on a recurring basis. Summary of the fair values of other financial instruments Cash equivalents The fair values of cash equivalents approximate their carrying values due to the short-term nature of such financial instruments. Borrowings We estimated the fair values of our borrowings by using Level 2 inputs. As of March 31, 2021 and December 31, 2020, the aggregate fair values of our borrowings were $36.7 billion and $39.4 billion, respectively, and the carrying values were $32.7 billion and $33.0 billion, respectively. |
Derivative instruments
Derivative instruments | 3 Months Ended |
Mar. 31, 2021 | |
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 such exposures, we use or have used certain derivative instruments, including foreign currency forward, 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 primarily associated 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 partially offset by corresponding increases and decreases in the cash flows from our international operating expenses resulting from these foreign currency exchange rate movements. To further reduce our exposure to foreign currency exchange rate fluctuations with regard to our international product sales, we enter into foreign currency forward 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 March 31, 2021 and December 31, 2020, we had outstanding foreign currency forward contracts with aggregate notional amounts of $5.2 billion and $5.1 billion, respectively. We have designated these foreign currency forward contracts, which are primarily euro based, as cash flow hedges. Accordingly, we report the unrealized gains and losses on these contracts in AOCI in the Condensed Consolidated Balance Sheets, and we reclassify them to Product sales in the Condensed Consolidated Statements of Income 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 debt denominated in foreign currencies, we enter into cross-currency swap contracts. Under the terms of such contracts, we paid euros, pounds sterling and Swiss francs and received U.S. dollars for the notional amounts at the inception of the contracts; and based on these notional amounts, we exchange interest payments at fixed rates over the lives of the contracts by paying U.S. dollars and receiving euros, pounds sterling and Swiss francs. In addition, we will pay U.S. dollars to and receive euros, pounds sterling and Swiss francs from the counterparties at the maturities of the contracts for these same notional amounts. The terms of these contracts correspond to the related hedged debt, thereby effectively converting the interest payments and principal repayment on the debt from euros, pounds sterling and Swiss francs to U.S. dollars. We have designated these cross-currency swap contracts as cash flow hedges. Accordingly, the unrealized gains and losses on these contracts are reported in AOCI in the Condensed Consolidated Balance Sheets and reclassified to Other income, net, in the Condensed Consolidated Statements of Income in the same periods during which the hedged debt affects earnings. The notional amounts and interest rates of our cross-currency swaps as of March 31, 2021, were as follows (notional amounts in millions): Foreign currency U.S. dollars Hedged notes Notional amounts Interest rates Notional amounts Interest rates 1.25% 2022 euro Notes € 1,250 1.3 % $ 1,388 3.2 % 0.41% 2023 Swiss franc Bonds CHF 700 0.4 % $ 704 3.4 % 2.00% 2026 euro Notes € 750 2.0 % $ 833 3.9 % 5.50% 2026 pound sterling Notes £ 475 5.5 % $ 747 6.0 % 4.00% 2029 pound sterling Notes £ 700 4.0 % $ 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 U.S. Treasury rate between the time we enter into these contracts and the time the related debt is issued. Gains and losses on forward interest rate contracts, which are designated as cash flow hedges, are recognized in AOCI i n the Condensed Consolidated Balance Sheets and are amortized into Interest expense, net, in the Condensed Consolidated Statements of Income over the lives of the associated debt issuances. Amounts recognized in connection with forward interest rate swaps during the three months ended March 31, 2021, and amounts expected to be recognized during the subsequent 12 months are not material. The unrealized gains and losses recognized in AOCI for our derivative instruments designated as cash flow hedges were as follows (in millions): Three months ended Derivatives in cash flow hedging relationships 2021 2020 Foreign currency contracts $ 183 $ 239 Cross-currency swap contracts (75) (401) Total unrealized gains (losses) $ 108 $ (162) Fair value hedges To achieve a desired mix of fixed-rate and floating-rate debt, we entered into interest rate swap contracts that qualified for and were designated as fair value hedges. These interest rate swap contracts effectively convert fixed-rate coupons to floating-rate LIBOR-based coupons over the terms of the related hedge contracts. As of both March 31, 2021 and December 31, 2020, we had interest rate swap contracts with aggregate notional amounts of $5.9 billion that hedge certain portions of our long-term debt issuances. For interest rate swap contracts that qualify for and are designated as fair value hedges, we recognize in Interest expense, net, in the Condensed Consolidated Statements of Income 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. If a hedging relationship involving an interest rate swap contract is terminated, the gain or loss realized on contract termination is recorded as an adjustment to the carrying value of the debt and amortized into Interest expense, net, over the remaining life of the previously hedged debt. The hedged liabilities and related cumulative-basis adjustments for fair value hedges of those liabilities were recorded in the Condensed Consolidated Balance Sheets as follows (in millions): Carrying amounts of hedged liabilities (1) Cumulative amounts of fair value hedging adjustments related to the carrying amounts of the hedged liabilities (2) Condensed Consolidated Balance Sheets locations March 31, 2021 December 31, 2020 March 31, 2021 December 31, 2020 Current portion of long-term debt $ 89 $ 89 $ 89 $ 89 Long-term debt $ 6,085 $ 6,258 $ 302 $ 477 ____________ (1) Current portion of long-term debt includes $89 million of carrying value with discontinued hedging relationships as of both March 31, 2021 and December 31, 2020. Long-term debt includes $502 million and $525 million of carrying value with discontinued hedging relationships as of March 31, 2021 and December 31, 2020, respectively. (2) Current portion of long-term debt includes $89 million of hedging adjustments on discontinued hedging relationships as of both March 31, 2021 and December 31, 2020. Long-term debt includes $402 million and $425 million of hedging adjustments on discontinued hedging relationships as of March 31, 2021 and December 31, 2020, respectively. Impact of hedging transactions The following tables summarize the amounts recorded in income and expense line items and the effects thereon from fair value and cash flow hedging, including discontinued hedging relationships (in millions): Three months ended March 31, 2021 Product sales Other income, net Interest expense, net Total amounts recorded in income and (expense) line items presented in the Condensed Consolidated Statements of Income $ 5,592 $ 13 $ (285) The effects of cash flow and fair value hedging: Losses on cash flow hedging relationships reclassified out of AOCI: Foreign currency contracts $ (1) $ — $ — Cross-currency swap contracts $ — $ (132) $ — Gains (losses) on fair value hedging relationships—interest rate swap agreements: Hedged items (1) $ — $ — $ 175 Derivatives designated as hedging instruments $ — $ — $ (152) Three months ended March 31, 2020 Product sales Other income, net Interest expense, net Total amounts recorded in income and (expense) line items presented in the Condensed Consolidated Statements of Income $ 5,894 $ 11 $ (346) The effects of cash flow and fair value hedging: Gains (losses) on cash flow hedging relationships reclassified out of AOCI: Foreign currency contracts $ 49 $ — $ — Cross-currency swap contracts $ — $ (133) $ — Gains (losses) on fair value hedging relationships—interest rate swap agreements: Hedged items (1) $ — $ — $ 210 Derivatives designated as hedging instruments $ — $ — $ (190) __________ (1) Gains on hedged items do not exactly offset losses on the related designated hedging instruments due to amortization of the cumulative amounts of fair value hedging adjustments included in the carrying amount of the hedged debt for discontinued hedging relationships and the recognition of gains on terminated hedges where the corresponding hedged item was paid down in the period. No portions of our cash flow hedge contracts were excluded from the assessment of hedge effectiveness. As of March 31, 2021, the net gains expected to be reclassified on our foreign currency and cross-currency swap contracts out of AOCI and into earnings during the next 12 months are not material. Derivatives not designated as hedges To reduce our exposure to foreign currency fluctuations in certain assets and liabilities denominated in foreign currencies, we enter into foreign currency forward contracts that are not designated as hedging transactions. Most of these exposures are hedged on a month-to-month basis. As of March 31, 2021 and December 31, 2020, the total notional amounts of these foreign currency forward contracts were $0.8 billion and $1.0 billion, respectively. Gains and losses recognized in earnings for our derivative instruments not designated as hedging instruments were not material for the three months ended March 31, 2021 and 2020. The fair values of derivatives included in the Condensed Consolidated Balance Sheets were as follows (in millions): Derivative assets Derivative liabilities March 31, 2021 Condensed Consolidated Fair values Condensed Consolidated Fair values Derivatives designated as hedging instruments: Foreign currency contracts Other current assets/ Other assets $ 79 Accrued liabilities/ Other noncurrent liabilities $ 107 Cross-currency swap contracts Other current assets/ Other assets 153 Accrued liabilities/ Other noncurrent liabilities 291 Interest rate swap contracts Other current assets/ Other assets 33 Accrued liabilities/ Other noncurrent liabilities 134 Total derivatives designated as hedging instruments $ 265 $ 532 Derivative assets Derivative liabilities December 31, 2020 Condensed Consolidated Fair values Condensed Consolidated Fair values Derivatives designated as hedging instruments: Foreign currency contracts Other current assets/ Other assets $ 28 Accrued liabilities/ Other noncurrent liabilities $ 237 Cross-currency swap contracts Other current assets/ Other assets 255 Accrued liabilities/ Other noncurrent liabilities 318 Interest rate swap contracts Other current assets/ Other assets 66 Accrued liabilities/ Other noncurrent liabilities 15 Total derivatives designated as hedging instruments $ 349 $ 570 Our derivative contracts that were in liability positions as of March 31, 2021, 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 either to or from a counterparty under the contracts may be offset against other amounts due either to or from the same counterparty only if an event of default or termination, as defined, were to occur. The cash flow effects of our derivative contracts in the Condensed Consolidated Statements of Cash Flows are included in Net cash provided by operating activities, except for the settlement of notional amounts of cross-currency swaps, which are included in Net cash used in financing activities. |
Contingencies and commitments
Contingencies and commitments | 3 Months Ended |
Mar. 31, 2021 | |
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, government investigations and other matters that are complex in nature and have outcomes that are difficult to predict. See our Annual Report on Form 10-K for the year ended December 31, 2020, Part I, Item 1A. Risk Factors— Our business may be affected by litigation and government investigations. We describe in this footnote our legal proceedings and other matters that are significant or that we believe could become significant. We record accruals for loss contingencies to the extent that we conclude 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 involve various aspects of our business and a variety of claims, some of which present novel factual allegations and/or unique legal theories. In each of the matters described in this filing, or in Note 19, Contingencies and commitments, to the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2020, in which we could incur a liability, our opponents 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 we face often extend for several years. As a result, none of the matters described in this filing, or in Note 19, Contingencies and commitments, to the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2020, in which we could incur a liability have progressed sufficiently through discovery and/or the 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 matters, an adverse determination in one or more of these matters currently pending could have a material adverse effect on our consolidated results of operations, financial position or cash flows. Certain recent developments concerning our legal proceedings and other matters are discussed below: Abbreviated New Drug Application (ANDA) Patent Litigation KYPROLIS ® ANDA Patent Litigation Onyx Therapeutics, Inc. v. Cipla Limited, et al . On March 8, 2021, the U.S. Court of Appeals for the Federal Circuit (the Federal Circuit Court) affirmed the May 2020 judgment of the U.S. District Court for the District of Delaware (the Delaware District Court), which judgment had found in favor of Onyx Therapeutics, Inc. (Onyx), and against Cipla Limited and Cipla USA, Inc. (collectively, Cipla), on infringement, validity and enforceability of claims 23 and 24 of Onyx’s U.S. Patent No. 7,417,042 (the ’042 Patent), claim 1 of U.S. Patent No. 8,207,125 (the ’125 Patent), and claim 31 of U.S. Patent No. 7,737,112 (the ’112 Patent). The May 2020 judgment also includes an injunction prohibiting Cipla from making, using, offering to sell, selling or importing into the United States Cipla’s carfilzomib product during the term of the three asserted patents (the ’042, ’125 and ’112 Patents). On April 7, 2021, Cipla filed a petition in the Federal Circuit Court requesting panel rehearing of the Federal Circuit Court’s decision on Cipla’s appeal, which was denied on April 23, 2021. Otezla ® ANDA Patent Litigation Amgen Inc. v. Sandoz Inc., et al. On March 24, 2021, based on a joint request by Amgen and Prinston Pharmaceutical Inc. (Prinston), the U.S. District Court for the District of New Jersey (the New Jersey District Court) entered a consent judgment and injunction prohibiting the making, using, selling, offering to sell, or importing of Prinston’s apremilast product during the term of U.S. Patent Nos. 7,427,638 and 10,092,541, unless authorized pursuant to a confidential settlement agreement. On April 6, 2021, based on a joint request by Amgen together with Aurobindo Pharma Ltd. and Aurobindo Pharma USA Inc. (collectively, Aurobindo), the New Jersey District Court entered a consent judgment and injunction prohibiting the making, using, selling, offering to sell, or importing of Aurobindo’s apremilast product during the term of U.S. Patent Nos. 6,962,940; 7,208,516; 7,427,638; 7,659,302; 7,893,101; 8,455,536; 8,802,717; 9,018,243; 9,724,330; 9,872,854; and 10,092,541 unless authorized pursuant to a confidential settlement agreement. Sensipar ® (cinacalcet) ANDA Patent Litigation Amgen Inc. v. Amneal Pharmaceuticals LLC, et al. (formerly, Amgen Inc. v. Aurobindo Pharma Ltd. et al.) On March 24, 2021, the Delaware District Court commenced an evidentiary hearing on the request by Piramal Healthcare UK Limited and Slate Run Pharmaceuticals LLC for damages caused by the injunction during the pendency of Amgen’s appeal. Repatha ® Patent Litigation Amgen Inc., et al. v. Sanofi, et al. On February 11, 2021, the Federal Circuit Court issued a decision affirming the Delaware District Court’s ruling that claims 19 and 29 of our U.S. Patent No. 8,829,165 and claim 7 of our U.S. Patent No. 8,859,741 are invalid for failing to meet the enablement requirement. Amgen filed a petition for rehearing en banc on April 14, 2021. On April 15, 2021, the Federal Circuit Court invited Sanofi and Regeneron to respond to Amgen’s petition. Sanofi and Regeneron’s response is due May 28, 2021. NEUPOGEN ® (filgrastim)/Neulasta ® Patent Litigation Amgen Inc. et al. v. Pfizer Inc. et al. On March 16, 2021, the Delaware District Court issued an order rescheduling the trial between Amgen Inc. and its wholly owned subsidiary, Amgen Manufacturing, Limited (collectively, Amgen) and Pfizer Inc. and Hospira Inc. (collectively, Pfizer) to begin on September 20, 2021. Amgen Inc., et al. v. Hospira Inc. et al. On March 23, 2021, the Delaware District Court denied Pfizer’s motion to dismiss the complaint by Amgen, which alleges Pfizer’s infringement of U.S. Patent No. 8,273,707. On April 6, 2021, the Delaware District Court stayed further proceedings in the matter pending claim construction of the patent claims. A claim construction hearing is scheduled for June 11, 2021. Patent Trial and Appeal Board (PTAB) Challenge Lupin PTAB Challenge On December 15, 2020, Lupin Limited filed a petition to institute inter parties review (IPR) proceeding at the U.S. Patent and Trademark Office (USPTO) of U.S. Patent No. 9,856,287 (the ’287 Patent) challenging claims of the ’287 Patent as unpatentable. Amgen’s preliminary response was filed on April 14, 2021, and the PTAB has no more than three months to decide whether to institute a proceeding. Antitrust Class Action Sensipar ® Antitrust Class Actions On February 16, 2021, the plaintiffs in the antitrust class action lawsuit brought on behalf of putative classes of direct or indirect purchasers of Sensipar ® filed their amended complaints. On March 4, 2021, a stipulation and order regarding the filing of a second amended complaint were filed to add another plaintiff: Teamsters Western Region & Local 177 Health Care Fund. On March 17, 2021, a defendant, MSP Recovery Claims, Series LLC, filed its notice of voluntary dismissal. On March 30, 2021, the remaining defendants, including Amgen, filed their motions to dismiss the second amended complaint. Humira ® Biosimilar Antitrust Class Actions On February 25, 2021, oral argument was held by the U.S. Court of Appeals for the Seventh Circuit on the appeal by plaintiffs-appellants of the lower court’s dismissal of the consolidated complaint with prejudice. |
Subsequent event
Subsequent event | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent event | Subsequent event On April 16, 2021, Amgen completed its acquisition of Five Prime Therapeutics, Inc. (Five Prime) for $38.00 per share in cash, for a total transaction price of approximately $1.9 billion. Five Prime is a clinical-stage biotechnology company focused on developing immuno-oncology and targeted cancer therapies. The transaction is expected to be accounted for as an asset acquisition and will be included in our condensed consolidated financial statements in the second quarter of 2021. |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Business | Business Amgen Inc. (including its subsidiaries, referred to as “Amgen,” “the Company,” “we,” “our” or “us”) is a global biotechnology pioneer that discovers, develops, manufactures and delivers innovative human therapeutics. We operate in one business segment: human therapeutics. |
Basis of presentation | Basis of presentation The financial information for the three months ended March 31, 2021 and 2020, is unaudited but includes all adjustments (consisting of only normal, recurring adjustments unless otherwise indicated), which Amgen considers necessary for a fair presentation of its condensed consolidated results of operations for those periods. Interim results are not necessarily indicative of results for the full fiscal year. The condensed consolidated financial statements should be read in conjunction with our consolidated financial statements and the notes thereto contained in our Annual Report on Form 10-K for the year ended December 31, 2020. |
Principles of consolidation | Principles of consolidation The condensed consolidated financial statements include the accounts of Amgen as well as its majority-owned subsidiaries. We do not have any significant interests in any variable interest entities. All material intercompany transactions and balances have been eliminated in consolidation. |
Use of estimates | Use of estimates The preparation of condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results may differ from those estimates. |
Property, plant and equipment, net | Property, plant and equipment, net Property, plant and equipment is recorded at historical cost, net of accumulated depreciation and amortization of $9.1 billion and $9.0 billion as of March 31, 2021 and December 31, 2020, respectively. |
Other recent accounting pronouncements | Recent accounting pronouncements In March 2020, the Financial Accounting Standards Board (FASB) issued a new accounting standard to ease the financial reporting burdens caused by the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates, commonly referred to as reference rate reform. The new standard provides temporary optional expedients and exceptions to current GAAP guidance on contract modifications and hedge accounting. Specifically, a modification to transition to an alternative reference rate is treated as an event that does not require contract remeasurement or reassessment of a previous accounting treatment. Moreover, for all types of hedging relationships, an entity is permitted to change the reference rate without having to dedesignate the hedging relationship. The standard is generally effective for all contract modifications made and hedging relationships evaluated through December 31, 2022. In January 2021, the FASB issued a new accounting standard to expand on the scope of the original March 2020 standard to include derivative instruments on discounting transactions. We are currently evaluating the impact that both standards will have on our condensed consolidated financial statements. |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue by product and by geographic area | Revenues were as follows (in millions): Three months ended March 31, 2021 2020 U.S. ROW Total U.S. ROW Total Enbrel ® (etanercept) $ 894 $ 30 $ 924 $ 1,117 $ 36 $ 1,153 Prolia ® (denosumab) 501 257 758 422 232 654 Neulasta ® (pegfilgrastim) 421 61 482 534 75 609 Otezla ® (apremilast) 366 110 476 377 102 479 XGEVA ® (denosumab) 334 134 468 355 126 481 Aranesp ® (darbepoetin alfa) 125 230 355 175 247 422 Repatha ® (evolocumab) 139 147 286 124 105 229 KYPROLIS ® (carfilzomib) 159 92 251 187 93 280 Other products 964 628 1,592 988 599 1,587 Total product sales (1) $ 3,903 $ 1,689 5,592 $ 4,279 $ 1,615 5,894 Other revenues 309 267 Total revenues $ 5,901 $ 6,161 ____________ |
Earnings per share (Tables)
Earnings per share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Computation for basic and diluted earnings per share | The computations for basic and diluted EPS were as follows (in millions, except per-share data): Three months ended 2021 2020 Income (Numerator): Net income for basic and diluted EPS $ 1,646 $ 1,825 Shares (Denominator): Weighted-average shares for basic EPS 577 590 Effect of dilutive securities 4 4 Weighted-average shares for diluted EPS 581 594 Basic EPS $ 2.85 $ 3.09 Diluted EPS $ 2.83 $ 3.07 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 fair values of interest-bearing securities, which are considered available-for-sale, by type of security were as follows (in millions): Types of securities as of March 31, 2021 Amortized Gross Gross Fair U.S. Treasury notes $ 103 $ 1 $ — $ 104 U.S. Treasury bills 4,949 — — 4,949 Money market mutual funds 4,668 — — 4,668 Other short-term interest-bearing securities — — — — Total interest-bearing securities $ 9,720 $ 1 $ — $ 9,721 Types of securities as of December 31, 2020 Amortized Gross Gross Fair U.S. Treasury notes $ 129 $ 1 $ — $ 130 U.S. Treasury bills 4,948 — — 4,948 Money market mutual funds 4,765 — — 4,765 Other short-term interest-bearing securities 2 — — 2 Total interest-bearing securities $ 9,844 $ 1 $ — $ 9,845 |
Fair values of available-for-sale investments by classification in the Consolidated Balance Sheets | The fair values of interest-bearing securities by location in the Condensed Consolidated Balance Sheets were as follows (in millions): Condensed Consolidated Balance Sheets locations March 31, 2021 December 31, 2020 Cash and cash equivalents $ 5,267 $ 5,464 Marketable securities 4,454 4,381 Total interest-bearing securities $ 9,721 $ 9,845 |
Fair values of available-for-sale interest-bearing security investments by contractual maturity | The fair values of available-for-sale investments by contractual maturity were as follows (in millions): Contractual maturities March 31, 2021 December 31, 2020 Maturing in one year or less $ 9,705 $ 9,795 Maturing after one year through three years 16 50 Total available-for-sale investments $ 9,721 $ 9,845 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following (in millions): March 31, 2021 December 31, 2020 Raw materials $ 605 $ 486 Work in process 2,463 2,437 Finished goods 949 970 Total inventories $ 4,017 $ 3,893 |
Goodwill and other intangible_2
Goodwill and other intangible assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | The change in the carrying amount of goodwill was as follows (in millions): Three months ended Beginning balance $ 14,689 Currency translation adjustment (16) Ending balance $ 14,673 |
Schedule of identifiable intangible assets | Other intangible assets consisted of the following (in millions): March 31, 2021 December 31, 2020 Gross Accumulated Other intangible Gross Accumulated Other intangible Finite-lived intangible assets: Developed-product-technology rights $ 25,578 $ (11,114) $ 14,464 $ 25,591 $ (10,564) $ 15,027 Licensing rights 3,766 (2,842) 924 3,743 (2,791) 952 Marketing-related rights 1,364 (1,059) 305 1,367 (1,041) 326 Research and development technology rights 1,301 (1,077) 224 1,317 (1,065) 252 Total finite-lived intangible assets 32,009 (16,092) 15,917 32,018 (15,461) 16,557 Indefinite-lived intangible assets: In-process research and development 30 — 30 30 — 30 Total other intangible assets $ 32,039 $ (16,092) $ 15,947 $ 32,048 $ (15,461) $ 16,587 |
Financing arrangements (Tables)
Financing arrangements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of borrowings | Our borrowings consisted of the following (in millions): March 31, 2021 December 31, 2020 1.25% €1,250 million notes due 2022 (1.25% 2022 euro Notes) $ 1,466 $ 1,527 2.70% notes due 2022 (2.70% 2022 Notes) 500 500 2.65% notes due 2022 (2.65% 2022 Notes) 1,500 1,500 3.625% notes due 2022 (3.625% 2022 Notes) 750 750 0.41% CHF700 million bonds due 2023 (0.41% 2023 Swiss franc Bonds) 742 791 2.25% notes due 2023 (2.25% 2023 Notes) 750 750 3.625% notes due 2024 (3.625% 2024 Notes) 1,400 1,400 1.90% notes due 2025 (1.90% 2025 Notes) 500 500 3.125% notes due 2025 (3.125% 2025 Notes) 1,000 1,000 2.00% €750 million notes due 2026 (2.00% 2026 euro Notes) 880 916 2.60% notes due 2026 (2.60% 2026 Notes) 1,250 1,250 5.50% £475 million notes due 2026 (5.50% 2026 pound sterling Notes) 655 649 2.20% notes due 2027 (2.20% 2027 Notes) 1,750 1,750 3.20% notes due 2027 (3.20% 2027 Notes) 1,000 1,000 4.00% £700 million notes due 2029 (4.00% 2029 pound sterling Notes) 965 957 2.45% notes due 2030 (2.45% 2030 Notes) 1,250 1,250 2.30% notes due 2031 (2.30% 2031 Notes) 1,250 1,250 6.375% notes due 2037 (6.375% 2037 Notes) 478 478 6.90% notes due 2038 (6.90% 2038 Notes) 254 254 6.40% notes due 2039 (6.40% 2039 Notes) 333 333 3.15% notes due 2040 (3.15% 2040 Notes) 2,000 2,000 5.75% notes due 2040 (5.75% 2040 Notes) 373 373 4.95% notes due 2041 (4.95% 2041 Notes) 600 600 5.15% notes due 2041 (5.15% 2041 Notes) 729 729 5.65% notes due 2042 (5.65% 2042 Notes) 415 415 5.375% notes due 2043 (5.375% 2043 Notes) 185 185 4.40% notes due 2045 (4.40% 2045 Notes) 2,250 2,250 4.563% notes due 2048 (4.563% 2048 Notes) 1,415 1,415 3.375% notes due 2050 (3.375% 2050 Notes) 2,250 2,250 4.663% notes due 2051 (4.663% 2051 Notes) 3,541 3,541 2.77% notes due 2053 (2.77% 2053 Notes) 940 940 Other notes due 2097 100 100 Unamortized bond discounts, premiums and issuance costs, net (1,182) (1,188) Fair value adjustments 391 566 Other 5 5 Total carrying value of debt 32,685 32,986 Less current portion (1,556) (91) Total long-term debt $ 31,129 $ 32,895 |
Stockholders' equity (Tables)
Stockholders' equity (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Summary of activity under our stock repurchase program | Activity under our stock repurchase program, on a trade date basis, was as follows (in millions): 2021 2020 Shares Dollars Shares Dollars First quarter 3.7 $ 865 4.3 $ 933 |
Components of accumulated other comprehensive income | The components of Accumulated other comprehensive income (loss) (AOCI) were as follows (in millions): Foreign Cash flow Available-for-sale Other AOCI Balance as of December 31, 2020 $ (709) $ (263) $ 1 $ (14) $ (985) Foreign currency translation adjustments (39) — — — (39) Unrealized gains — 108 — — 108 Reclassification adjustments to income — 133 — — 133 Other — — — 1 1 Income taxes — (51) — — (51) Balance as of March 31, 2021 $ (748) $ (73) $ 1 $ (13) $ (833) |
Reclassifications out of accumulated other comprehensive income | Reclassifications out of AOCI and into earnings, including the related income tax expenses, were as follows (in millions): Three months ended March 31, Components of AOCI 2021 2020 Condensed Consolidated Cash flow hedges: Foreign currency contract (losses) gains $ (1) $ 49 Product sales Cross-currency swap contract losses (132) (133) Other income, net (133) (84) Income before income taxes 28 18 Provision for income taxes $ (105) $ (66) Net income Available-for-sale securities: Net realized gains $ — $ 33 Other income, net — (7) Provision for income taxes $ — $ 26 Net income |
Fair value measurement (Tables)
Fair value measurement (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 values of each major class of the Company’s financial assets and liabilities measured at fair value on a recurring basis were as follows (in millions): Quoted prices in Significant Significant Fair value measurement as of March 31, 2021, using: Total Assets: Available-for-sale securities: U.S. Treasury notes $ 104 $ — $ — $ 104 U.S. Treasury bills 4,949 — — 4,949 Money market mutual funds 4,668 — — 4,668 Other short-term interest-bearing securities — — — — Equity securities 394 — — 394 Derivatives: Foreign currency contracts — 79 — 79 Cross-currency swap contracts — 153 — 153 Interest rate swap contracts — 33 — 33 Total assets $ 10,115 $ 265 $ — $ 10,380 Liabilities: Derivatives: Foreign currency contracts $ — $ 107 $ — $ 107 Cross-currency swap contracts — 291 — 291 Interest rate swap contracts — 134 — 134 Contingent consideration obligations — — 39 39 Total liabilities $ — $ 532 $ 39 $ 571 Quoted prices in Significant Significant Fair value measurement as of December 31, 2020, using: Total Assets: Available-for-sale securities: U.S. Treasury notes $ 130 $ — $ — $ 130 U.S. Treasury bills 4,948 — — 4,948 Money market mutual funds 4,765 — — 4,765 Other short-term interest-bearing securities — 2 — 2 Equity securities 477 — — 477 Derivatives: Foreign currency contracts — 28 — 28 Cross-currency swap contracts — 255 — 255 Interest rate swap contracts — 66 — 66 Total assets $ 10,320 $ 351 $ — $ 10,671 Liabilities: Derivatives: Foreign currency contracts $ — $ 237 $ — $ 237 Cross-currency swap contracts — 318 — 318 Interest rate swap contracts — 15 — 15 Contingent consideration obligations — — 33 33 Total liabilities $ — $ 570 $ 33 $ 603 |
Derivative instruments (Tables)
Derivative instruments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 as of March 31, 2021, were as follows (notional amounts in millions): Foreign currency U.S. dollars Hedged notes Notional amounts Interest rates Notional amounts Interest rates 1.25% 2022 euro Notes € 1,250 1.3 % $ 1,388 3.2 % 0.41% 2023 Swiss franc Bonds CHF 700 0.4 % $ 704 3.4 % 2.00% 2026 euro Notes € 750 2.0 % $ 833 3.9 % 5.50% 2026 pound sterling Notes £ 475 5.5 % $ 747 6.0 % 4.00% 2029 pound sterling Notes £ 700 4.0 % $ 1,111 4.5 % |
Unrealized gain (loss) recognized in Other Comprehensive Income for our derivative instruments designated as cash flow hedges | The unrealized gains and losses recognized in AOCI for our derivative instruments designated as cash flow hedges were as follows (in millions): Three months ended Derivatives in cash flow hedging relationships 2021 2020 Foreign currency contracts $ 183 $ 239 Cross-currency swap contracts (75) (401) Total unrealized gains (losses) $ 108 $ (162) |
Derivatives in fair value hedging relationships | The hedged liabilities and related cumulative-basis adjustments for fair value hedges of those liabilities were recorded in the Condensed Consolidated Balance Sheets as follows (in millions): Carrying amounts of hedged liabilities (1) Cumulative amounts of fair value hedging adjustments related to the carrying amounts of the hedged liabilities (2) Condensed Consolidated Balance Sheets locations March 31, 2021 December 31, 2020 March 31, 2021 December 31, 2020 Current portion of long-term debt $ 89 $ 89 $ 89 $ 89 Long-term debt $ 6,085 $ 6,258 $ 302 $ 477 ____________ (1) Current portion of long-term debt includes $89 million of carrying value with discontinued hedging relationships as of both March 31, 2021 and December 31, 2020. Long-term debt includes $502 million and $525 million of carrying value with discontinued hedging relationships as of March 31, 2021 and December 31, 2020, respectively. (2) Current portion of long-term debt includes $89 million of hedging adjustments on discontinued hedging relationships as of both March 31, 2021 and December 31, 2020. Long-term debt includes $402 million and $425 million of hedging adjustments on discontinued hedging relationships as of March 31, 2021 and December 31, 2020, respectively. |
Summary of amounts of income and expense line items | The following tables summarize the amounts recorded in income and expense line items and the effects thereon from fair value and cash flow hedging, including discontinued hedging relationships (in millions): Three months ended March 31, 2021 Product sales Other income, net Interest expense, net Total amounts recorded in income and (expense) line items presented in the Condensed Consolidated Statements of Income $ 5,592 $ 13 $ (285) The effects of cash flow and fair value hedging: Losses on cash flow hedging relationships reclassified out of AOCI: Foreign currency contracts $ (1) $ — $ — Cross-currency swap contracts $ — $ (132) $ — Gains (losses) on fair value hedging relationships—interest rate swap agreements: Hedged items (1) $ — $ — $ 175 Derivatives designated as hedging instruments $ — $ — $ (152) Three months ended March 31, 2020 Product sales Other income, net Interest expense, net Total amounts recorded in income and (expense) line items presented in the Condensed Consolidated Statements of Income $ 5,894 $ 11 $ (346) The effects of cash flow and fair value hedging: Gains (losses) on cash flow hedging relationships reclassified out of AOCI: Foreign currency contracts $ 49 $ — $ — Cross-currency swap contracts $ — $ (133) $ — Gains (losses) on fair value hedging relationships—interest rate swap agreements: Hedged items (1) $ — $ — $ 210 Derivatives designated as hedging instruments $ — $ — $ (190) __________ (1) Gains on hedged items do not exactly offset losses on the related designated hedging instruments due to amortization of the cumulative amounts of fair value hedging adjustments included in the carrying amount of the hedged debt for discontinued hedging relationships and the recognition of gains on terminated hedges where the corresponding hedged item was paid down in the period. |
Fair values of derivatives included in the Condensed Consolidated Balance Sheets | The fair values of derivatives included in the Condensed Consolidated Balance Sheets were as follows (in millions): Derivative assets Derivative liabilities March 31, 2021 Condensed Consolidated Fair values Condensed Consolidated Fair values Derivatives designated as hedging instruments: Foreign currency contracts Other current assets/ Other assets $ 79 Accrued liabilities/ Other noncurrent liabilities $ 107 Cross-currency swap contracts Other current assets/ Other assets 153 Accrued liabilities/ Other noncurrent liabilities 291 Interest rate swap contracts Other current assets/ Other assets 33 Accrued liabilities/ Other noncurrent liabilities 134 Total derivatives designated as hedging instruments $ 265 $ 532 Derivative assets Derivative liabilities December 31, 2020 Condensed Consolidated Fair values Condensed Consolidated Fair values Derivatives designated as hedging instruments: Foreign currency contracts Other current assets/ Other assets $ 28 Accrued liabilities/ Other noncurrent liabilities $ 237 Cross-currency swap contracts Other current assets/ Other assets 255 Accrued liabilities/ Other noncurrent liabilities 318 Interest rate swap contracts Other current assets/ Other assets 66 Accrued liabilities/ Other noncurrent liabilities 15 Total derivatives designated as hedging instruments $ 349 $ 570 |
Summary of significant accoun_3
Summary of significant accounting policies (Details) $ in Billions | 3 Months Ended | |
Mar. 31, 2021USD ($)segment | Dec. 31, 2020USD ($) | |
Accounting Policies [Abstract] | ||
Number of operating segments | segment | 1 | |
Accumulated depreciation and amortization on property, plant and equipment | $ | $ 9.1 | $ 9 |
Revenues (Details)
Revenues (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2021USD ($)segment | Mar. 31, 2020USD ($) | |
Revenue from Contract with Customer [Abstract] | ||
Number of operating segments | segment | 1 | |
Revenue from External Customer [Line Items] | ||
Total revenues | $ 5,901 | $ 6,161 |
Product sales [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 5,592 | 5,894 |
Product sales [Member] | US [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 3,903 | 4,279 |
Product sales [Member] | ROW [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 1,689 | 1,615 |
Enbrel® (etanercept) [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 924 | 1,153 |
Enbrel® (etanercept) [Member] | US [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 894 | 1,117 |
Enbrel® (etanercept) [Member] | ROW [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 30 | 36 |
Prolia® (denosumab) [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 758 | 654 |
Prolia® (denosumab) [Member] | US [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 501 | 422 |
Prolia® (denosumab) [Member] | ROW [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 257 | 232 |
Neulasta® (pegfilgrastim) [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 482 | 609 |
Neulasta® (pegfilgrastim) [Member] | US [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 421 | 534 |
Neulasta® (pegfilgrastim) [Member] | ROW [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 61 | 75 |
Otezla (apremilast) [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 476 | 479 |
Otezla (apremilast) [Member] | US [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 366 | 377 |
Otezla (apremilast) [Member] | ROW [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 110 | 102 |
XGEVA® (denosumab) [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 468 | 481 |
XGEVA® (denosumab) [Member] | US [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 334 | 355 |
XGEVA® (denosumab) [Member] | ROW [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 134 | 126 |
Aranesp® (darbepoetin alfa) [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 355 | 422 |
Aranesp® (darbepoetin alfa) [Member] | US [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 125 | 175 |
Aranesp® (darbepoetin alfa) [Member] | ROW [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 230 | 247 |
Repatha (evolocumab) [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 286 | 229 |
Repatha (evolocumab) [Member] | US [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 139 | 124 |
Repatha (evolocumab) [Member] | ROW [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 147 | 105 |
KYPROLIS® (carfilzomib) [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 251 | 280 |
KYPROLIS® (carfilzomib) [Member] | US [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 159 | 187 |
KYPROLIS® (carfilzomib) [Member] | ROW [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 92 | 93 |
Other products [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 1,592 | 1,587 |
Other products [Member] | US [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 964 | 988 |
Other products [Member] | ROW [Member] | ||
Revenue from External Customer [Line Items] | ||
Total product sales | 628 | 599 |
Other revenues [Member] | ||
Revenue from External Customer [Line Items] | ||
Total revenues | $ 309 | $ 267 |
Income taxes (Details)
Income taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 11.40% | 9.70% |
Increase in unrecognized tax benefits resulting from tax positions taken during the current period | $ 60 |
Earnings per share (Details)
Earnings per share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income (Numerator): | ||
Net income for basic and diluted EPS | $ 1,646 | $ 1,825 |
Shares (Denominator): | ||
Weighted-average shares for basic EPS (in shares) | 577 | 590 |
Effect of dilutive securities (in shares) | 4 | 4 |
Weighted-average shares for diluted EPS (in shares) | 581 | 594 |
Basic EPS (in usd per share) | $ 2.85 | $ 3.09 |
Diluted EPS (in usd per share) | $ 2.83 | $ 3.07 |
Investments (Details)
Investments (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | $ 9,720,000,000 | $ 9,844,000,000 |
Gross unrealized gains | 1,000,000 | 1,000,000 |
Gross unrealized losses | 0 | 0 |
Fair values | 9,721,000,000 | 9,845,000,000 |
U.S. Treasury notes [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 103,000,000 | 129,000,000 |
Gross unrealized gains | 1,000,000 | 1,000,000 |
Gross unrealized losses | 0 | 0 |
Fair values | 104,000,000 | 130,000,000 |
U.S. Treasury bills [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 4,949,000,000 | 4,948,000,000 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Fair values | 4,949,000,000 | 4,948,000,000 |
Money market mutual funds [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 4,668,000,000 | 4,765,000,000 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Fair values | 4,668,000,000 | 4,765,000,000 |
Other short-term interest-bearing securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 0 | 2,000,000 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Fair values | $ 0 | $ 2,000,000 |
Investments (Fair Values by Cla
Investments (Fair Values by Classification) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Fair values of available-for-sale investments by classification in the Consolidated Balance Sheets | ||
Marketable securities | $ 4,454 | $ 4,381 |
Total interest-bearing securities | 9,721 | 9,845 |
Available-for-sale investments [Member] | ||
Fair values of available-for-sale investments by classification in the Consolidated Balance Sheets | ||
Cash and cash equivalents | 5,267 | 5,464 |
Marketable securities | 4,454 | 4,381 |
Total interest-bearing securities | $ 9,721 | $ 9,845 |
Investments (Available-for-sale
Investments (Available-for-sale Investments) (Details Textual) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2021 | Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |||
Cash | $ 845 | $ 802 | |
Total realized gains | $ 37 | ||
Total realized losses | $ 4 |
Investments (Fair Values by Con
Investments (Fair Values by Contractual Maturity) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Investments, Debt and Equity Securities [Abstract] | ||
Maturing in one year or less | $ 9,705 | $ 9,795 |
Maturing after one year through three years | 16 | 50 |
Total interest-bearing securities | $ 9,721 | $ 9,845 |
Investments (Equity Securities)
Investments (Equity Securities) (Details Textual) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |||
Equity securities | $ 394 | $ 477 | |
Equity Securities, FV-NI, Unrealized Gain (Loss) | (56) | $ (76) | |
Equity securities without readily determinable fair value | $ 204 | $ 203 |
Investments Investments (Limite
Investments Investments (Limited Partnership Investments) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Limited Partnership [Member] | Fair Value Measured at Net Asset Value Per Share [Member] | |||
Net Investment Income [Line Items] | |||
Alternative investments | $ 676 | $ 496 | |
Net gains from limited partnership investments | 208 | $ 20 | |
BeiGene [Member] | |||
Net Investment Income [Line Items] | |||
Carrying value of equity method investment | $ 2,800 | ||
Ownership percentage | 20.40% | ||
Equity Method Investments,Quoted Market Price | $ 6,500 | ||
Income (Loss) from Equity Method Investments | (97) | ||
Equity Method Investment, Amortization of Difference Between Carrying Amount and Underlying Equity | 42 | ||
Equity Method Investment, Change In Carrying Value, Other | $ 17 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 605 | $ 486 |
Work in process | 2,463 | 2,437 |
Finished goods | 949 | 970 |
Total inventories | $ 4,017 | $ 3,893 |
Goodwill and other intangible_3
Goodwill and other intangible assets (Goodwill Roll Forward) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 14,689 |
Currency translation adjustment | (16) |
Ending balance | $ 14,673 |
Goodwill and other intangible_4
Goodwill and other intangible assets (Identifiable Intangible Assets) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amounts | $ 32,009 | $ 32,018 |
Accumulated amortization | (16,092) | (15,461) |
Other intangible assets, net | 15,917 | 16,557 |
Gross carrying amount | 32,039 | 32,048 |
Accumulated amortization | (16,092) | (15,461) |
Intangible assets, net | 15,947 | 16,587 |
In-process Research and Development [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 30 | 30 |
Developed-Product-Technology Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amounts | 25,578 | 25,591 |
Accumulated amortization | (11,114) | (10,564) |
Other intangible assets, net | 14,464 | 15,027 |
Licensing Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amounts | 3,766 | 3,743 |
Accumulated amortization | (2,842) | (2,791) |
Other intangible assets, net | 924 | 952 |
Marketing-Related Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amounts | 1,364 | 1,367 |
Accumulated amortization | (1,059) | (1,041) |
Other intangible assets, net | 305 | 326 |
Research and Development Technology Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amounts | 1,301 | 1,317 |
Accumulated amortization | (1,077) | (1,065) |
Other intangible assets, net | $ 224 | $ 252 |
Goodwill and other intangible_5
Goodwill and other intangible assets (Details Textual) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization charges associated with finite-lived intangible assets | $ 654 | $ 709 |
Total estimated amortization of finite-lived intangible assets for the nine months ending December 31, 2021 | 1,900 | |
Total estimated amortization of finite-lived intangible assets for 2022 | 2,500 | |
Total estimated amortization of finite-lived intangible assets for 2023 | 2,400 | |
Total estimated amortization of finite-lived intangible assets for 2024 | 2,400 | |
Total estimated amortization of finite-lived intangible assets for 2025 | 2,200 | |
Total estimated amortization of finite-lived intangible assets for 2026 | $ 1,800 |
Financing arrangements (Princip
Financing arrangements (Principal Amounts and Carrying Value of Long-term Borrowings) (Details) $ in Millions | Mar. 31, 2021EUR (€) | Mar. 31, 2021USD ($) | Mar. 31, 2021CHF (SFr) | Mar. 31, 2021GBP (£) | Dec. 31, 2020USD ($) |
Debt Instrument [Line Items] | |||||
Unamortized bond discounts, premiums and issuance costs, net | $ (1,182) | $ (1,188) | |||
Fair value adjustments | 391 | 566 | |||
Other | 5 | 5 | |||
Total carrying value of debt | 32,685 | 32,986 | |||
Less current portion | (1,556) | (91) | |||
Total long-term debt | $ 31,129 | 32,895 | |||
Notes [Member] | 1.25% €1,250 million notes due 2022 (1.25% 2022 euro Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 1.25% | 1.25% | 1.25% | 1.25% | |
Long-term debt, gross | $ 1,466 | 1,527 | |||
Face amount | € | € 1,250,000,000 | ||||
Notes [Member] | 2.70% notes due 2022 (2.70% 2022 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 2.70% | 2.70% | 2.70% | 2.70% | |
Long-term debt, gross | $ 500 | 500 | |||
Notes [Member] | 2.65% notes due 2022 (2.65% 2022 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 2.65% | 2.65% | 2.65% | 2.65% | |
Long-term debt, gross | $ 1,500 | 1,500 | |||
Notes [Member] | 3.625% notes due 2022 (3.625% 2022 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 3.625% | 3.625% | 3.625% | 3.625% | |
Long-term debt, gross | $ 750 | 750 | |||
Notes [Member] | 0.41% CHF700 million bonds due 2023 (0.41% 2023 Swiss franc Bonds) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 0.41% | 0.41% | 0.41% | 0.41% | |
Long-term debt, gross | $ 742 | 791 | |||
Face amount | SFr | SFr 700,000,000 | ||||
Notes [Member] | 2.25% notes due 2023 (2.25% 2023 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 2.25% | 2.25% | 2.25% | 2.25% | |
Long-term debt, gross | $ 750 | 750 | |||
Notes [Member] | 3.625% notes due 2024 (3.625% 2024 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 3.625% | 3.625% | 3.625% | 3.625% | |
Long-term debt, gross | $ 1,400 | 1,400 | |||
Notes [Member] | 1.90% notes due 2025 (1.90% 2025 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 1.90% | 1.90% | 1.90% | 1.90% | |
Long-term debt, gross | $ 500 | 500 | |||
Notes [Member] | 3.125% notes due 2025 (3.125% 2025 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 3.125% | 3.125% | 3.125% | 3.125% | |
Long-term debt, gross | $ 1,000 | 1,000 | |||
Notes [Member] | 2.00% €750 million notes due 2026 (2.00% 2026 euro Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 2.00% | 2.00% | 2.00% | 2.00% | |
Long-term debt, gross | $ 880 | 916 | |||
Face amount | € | € 750,000,000 | ||||
Notes [Member] | 2.60% notes due 2026 (2.60% 2026 notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 2.60% | 2.60% | 2.60% | 2.60% | |
Long-term debt, gross | $ 1,250 | 1,250 | |||
Notes [Member] | 5.50% £475 million notes due 2026 (5.50% 2026 pound sterling Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 5.50% | 5.50% | 5.50% | 5.50% | |
Long-term debt, gross | $ 655 | 649 | |||
Face amount | £ | £ 475,000,000 | ||||
Notes [Member] | 2.20% notes due 2027 (2.20% 2027 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 2.20% | 2.20% | 2.20% | 2.20% | |
Long-term debt, gross | $ 1,750 | 1,750 | |||
Notes [Member] | 3.20% notes due 2027 (3.20% 2027 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 3.20% | 3.20% | 3.20% | 3.20% | |
Long-term debt, gross | $ 1,000 | 1,000 | |||
Notes [Member] | 4.00% £700 million notes due 2029 (4.00% 2029 pound sterling Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 4.00% | 4.00% | 4.00% | 4.00% | |
Long-term debt, gross | $ 965 | 957 | |||
Face amount | £ | £ 700,000,000 | ||||
Notes [Member] | 2.45% notes due 2030 (2.45% 2030 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 2.45% | 2.45% | 2.45% | 2.45% | |
Long-term debt, gross | $ 1,250 | 1,250 | |||
Notes [Member] | 2.30% notes due 2031 (2.30% 2031 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 2.30% | 2.30% | 2.30% | 2.30% | |
Long-term debt, gross | $ 1,250 | 1,250 | |||
Notes [Member] | 6.375% notes due 2037 (6.375% 2037 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 6.375% | 6.375% | 6.375% | 6.375% | |
Long-term debt, gross | $ 478 | 478 | |||
Notes [Member] | 6.90% notes due 2038 (6.90% 2038 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 6.90% | 6.90% | 6.90% | 6.90% | |
Long-term debt, gross | $ 254 | 254 | |||
Notes [Member] | 6.40% notes due 2039 (6.40% 2039 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 6.40% | 6.40% | 6.40% | 6.40% | |
Long-term debt, gross | $ 333 | 333 | |||
Notes [Member] | 3.15% notes due 2040 (3.15% 2040 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 3.15% | 3.15% | 3.15% | 3.15% | |
Long-term debt, gross | $ 2,000 | 2,000 | |||
Notes [Member] | 5.75% notes due 2040 (5.75% 2040 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 5.75% | 5.75% | 5.75% | 5.75% | |
Long-term debt, gross | $ 373 | 373 | |||
Notes [Member] | 4.95% notes due 2041 (4.95% 2041 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 4.95% | 4.95% | 4.95% | 4.95% | |
Long-term debt, gross | $ 600 | 600 | |||
Notes [Member] | 5.15% notes due 2041 (5.15% 2041 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 5.15% | 5.15% | 5.15% | 5.15% | |
Long-term debt, gross | $ 729 | 729 | |||
Notes [Member] | 5.65% notes due 2042 (5.65% 2042 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 5.65% | 5.65% | 5.65% | 5.65% | |
Long-term debt, gross | $ 415 | 415 | |||
Notes [Member] | 5.375% notes due 2043 (5.375% 2043 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 5.375% | 5.375% | 5.375% | 5.375% | |
Long-term debt, gross | $ 185 | 185 | |||
Notes [Member] | 4.40% notes due 2045 (4.40% 2045 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 4.40% | 4.40% | 4.40% | 4.40% | |
Long-term debt, gross | $ 2,250 | 2,250 | |||
Notes [Member] | 4.563% notes due 2048 (4.563% 2048 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 4.563% | 4.563% | 4.563% | 4.563% | |
Long-term debt, gross | $ 1,415 | 1,415 | |||
Notes [Member] | 3.375% notes due 2050 (3.375% 2050 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 3.375% | 3.375% | 3.375% | 3.375% | |
Long-term debt, gross | $ 2,250 | 2,250 | |||
Notes [Member] | 4.663% notes due 2051 (4.663% 2051 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 4.663% | 4.663% | 4.663% | 4.663% | |
Long-term debt, gross | $ 3,541 | 3,541 | |||
Notes [Member] | Two Point Seven Seven Percent Notes Due Two Zero Five Three | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 2.77% | 2.77% | 2.77% | 2.77% | |
Long-term debt, gross | $ 940 | 940 | |||
Notes [Member] | Other notes due 2097 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 100 | $ 100 |
Financing arrangements (Details
Financing arrangements (Details Textual) - Notes [Member] | Mar. 31, 2021 |
4.563% notes due 2048 (4.563% 2048 Notes) [Member] | |
Debt Instrument [Line Items] | |
Interest rate, stated percentage | 4.563% |
Effective interest rate | 6.30% |
4.663% notes due 2051 (4.663% 2051 Notes) [Member] | |
Debt Instrument [Line Items] | |
Interest rate, stated percentage | 4.663% |
Effective interest rate | 5.60% |
Two Point Seven Seven Percent Notes Due Two Zero Five Three | |
Debt Instrument [Line Items] | |
Interest rate, stated percentage | 2.77% |
Effective interest rate | 5.20% |
Stockholders' equity (Share Rep
Stockholders' equity (Share Repurchase Program) (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Equity [Abstract] | ||
Stock repurchased, Shares | 3.7 | 4.3 |
Stock repurchased | $ 865 | $ 933 |
Stockholders' equity (Details T
Stockholders' equity (Details Textual) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |||
Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Class of Stock [Line Items] | |||||
Stock repurchase program, additional authorized amount | $ 3,400,000,000 | $ 3,400,000,000 | |||
Amount available for stock repurchases under a board approved stock repurchase plan | $ 5,500,000,000 | $ 5,500,000,000 | |||
Dividends declared per share (in usd per share) | $ 1.76 | $ 1.76 | $ 1.76 | $ 1.60 | |
Dividends paid per share (in usd per share) | $ 1.76 | ||||
Forecast [Member] | |||||
Class of Stock [Line Items] | |||||
Dividends paid per share (in usd per share) | $ 1.76 |
Stockholders' equity (Component
Stockholders' equity (Components of AOCI) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Increase (Decrease) in AOCI [Roll Forward] | ||
Balance as of beginning of period | $ 9,409 | $ 9,673 |
Foreign currency translation adjustments | (39) | (52) |
Balance as of end of period | 9,334 | 9,485 |
Foreign currency translation [Member] | ||
Increase (Decrease) in AOCI [Roll Forward] | ||
Balance as of beginning of period | (709) | |
Foreign currency translation adjustments | (39) | |
Income taxes | 0 | |
Balance as of end of period | (748) | |
Cash flow hedges [Member] | ||
Increase (Decrease) in AOCI [Roll Forward] | ||
Balance as of beginning of period | (263) | |
Unrealized gains | 108 | |
Reclassification adjustments to income | 133 | |
Income taxes | 51 | |
Balance as of end of period | (73) | |
Available-for-sale securities [Member] | ||
Increase (Decrease) in AOCI [Roll Forward] | ||
Balance as of beginning of period | 1 | |
Unrealized gains | 0 | |
Reclassification adjustments to income | 0 | |
Income taxes | 0 | |
Balance as of end of period | 1 | |
Other [Member] | ||
Increase (Decrease) in AOCI [Roll Forward] | ||
Balance as of beginning of period | (14) | |
Unrealized gains | 0 | |
Other | 1 | |
Balance as of end of period | (13) | |
AOCI [Member] | ||
Increase (Decrease) in AOCI [Roll Forward] | ||
Balance as of beginning of period | (985) | (528) |
Foreign currency translation adjustments | (39) | |
Unrealized gains | 108 | |
Reclassification adjustments to income | 133 | |
Other | 1 | |
Income taxes | (51) | |
Balance as of end of period | $ (833) | $ (662) |
Stockholders' equity (Reclassif
Stockholders' equity (Reclassifications out of AOCI) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
Other income, net | $ 13 | $ 11 |
Income before income taxes | 1,857 | 2,020 |
Provision for income taxes | (211) | (195) |
Net income | 1,646 | 1,825 |
Product sales [Member] | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
Product sales | 5,592 | 5,894 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Cash flow hedges [Member] | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
Income before income taxes | (133) | (84) |
Provision for income taxes | 28 | 18 |
Net income | (105) | (66) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Available-for-sale securities [Member] | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
Other income, net | 0 | 33 |
Provision for income taxes | 0 | (7) |
Net income | 0 | 26 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Foreign currency contract [Member] | Cash flow hedges [Member] | Product sales [Member] | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
Product sales | (1) | 49 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Cross-currency swap contract [Member] | Cash flow hedges [Member] | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
Other income, net | (132) | (133) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Cash flow hedges [Member] | Foreign currency contract [Member] | Cash flow hedges [Member] | Product sales [Member] | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
Product sales | (1) | 49 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Cash flow hedges [Member] | Cross-currency swap contract [Member] | Cash flow hedges [Member] | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
Other income, net | $ (132) | $ (133) |
Fair value measurement (Details
Fair value measurement (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Assets: | ||
Interest-bearing securities | $ 9,721 | $ 9,845 |
Equity securities | 394 | 477 |
Derivatives: | ||
Total assets | 10,380 | 10,671 |
Derivatives: | ||
Contingent consideration obligations | 39 | 33 |
Total liabilities | 571 | 603 |
Foreign currency contracts [Member] | ||
Derivatives: | ||
Foreign currency and cross-currency swap contracts | 79 | 28 |
Derivatives: | ||
Foreign currency and cross-currency swap contracts | 107 | 237 |
Cross-currency swap contracts [Member] | ||
Derivatives: | ||
Foreign currency and cross-currency swap contracts | 153 | 255 |
Derivatives: | ||
Foreign currency and cross-currency swap contracts | 291 | 318 |
Interest rate swap contracts [Member] | ||
Derivatives: | ||
Interest rate swap contracts | 33 | 66 |
Derivatives: | ||
Interest rate swap contracts | 134 | 15 |
Quoted prices in active markets for identical assets (Level 1) [Member] | ||
Assets: | ||
Equity securities | 394 | 477 |
Derivatives: | ||
Total assets | 10,115 | 10,320 |
Derivatives: | ||
Contingent consideration obligations | 0 | 0 |
Total liabilities | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) [Member] | Foreign currency contracts [Member] | ||
Derivatives: | ||
Foreign currency and cross-currency swap contracts | 0 | 0 |
Derivatives: | ||
Foreign currency and cross-currency swap contracts | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) [Member] | Cross-currency swap contracts [Member] | ||
Derivatives: | ||
Foreign currency and cross-currency swap contracts | 0 | 0 |
Derivatives: | ||
Foreign currency and cross-currency swap contracts | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) [Member] | Interest rate swap contracts [Member] | ||
Derivatives: | ||
Interest rate swap contracts | 0 | 0 |
Derivatives: | ||
Interest rate swap contracts | 0 | 0 |
Significant other observable inputs (Level 2) [Member] | ||
Assets: | ||
Equity securities | 0 | 0 |
Derivatives: | ||
Total assets | 265 | 351 |
Derivatives: | ||
Contingent consideration obligations | 0 | 0 |
Total liabilities | 532 | 570 |
Significant other observable inputs (Level 2) [Member] | Foreign currency contracts [Member] | ||
Derivatives: | ||
Foreign currency and cross-currency swap contracts | 79 | 28 |
Derivatives: | ||
Foreign currency and cross-currency swap contracts | 107 | 237 |
Significant other observable inputs (Level 2) [Member] | Cross-currency swap contracts [Member] | ||
Derivatives: | ||
Foreign currency and cross-currency swap contracts | 153 | 255 |
Derivatives: | ||
Foreign currency and cross-currency swap contracts | 291 | 318 |
Significant other observable inputs (Level 2) [Member] | Interest rate swap contracts [Member] | ||
Derivatives: | ||
Interest rate swap contracts | 33 | 66 |
Derivatives: | ||
Interest rate swap contracts | 134 | 15 |
Significant unobservable inputs (Level 3) [Member] | ||
Assets: | ||
Equity securities | 0 | 0 |
Derivatives: | ||
Total assets | 0 | 0 |
Derivatives: | ||
Contingent consideration obligations | 39 | 33 |
Total liabilities | 39 | 33 |
Significant unobservable inputs (Level 3) [Member] | Foreign currency contracts [Member] | ||
Derivatives: | ||
Foreign currency and cross-currency swap contracts | 0 | 0 |
Derivatives: | ||
Foreign currency and cross-currency swap contracts | 0 | 0 |
Significant unobservable inputs (Level 3) [Member] | Cross-currency swap contracts [Member] | ||
Derivatives: | ||
Foreign currency and cross-currency swap contracts | 0 | 0 |
Derivatives: | ||
Foreign currency and cross-currency swap contracts | 0 | 0 |
Significant unobservable inputs (Level 3) [Member] | Interest rate swap contracts [Member] | ||
Derivatives: | ||
Interest rate swap contracts | 0 | 0 |
Derivatives: | ||
Interest rate swap contracts | 0 | 0 |
U.S. Treasury notes [Member] | ||
Assets: | ||
Interest-bearing securities | 104 | 130 |
U.S. Treasury notes [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | ||
Assets: | ||
Interest-bearing securities | 104 | 130 |
U.S. Treasury notes [Member] | Significant other observable inputs (Level 2) [Member] | ||
Assets: | ||
Interest-bearing securities | 0 | 0 |
U.S. Treasury notes [Member] | Significant unobservable inputs (Level 3) [Member] | ||
Assets: | ||
Interest-bearing securities | 0 | 0 |
U.S. Treasury bills [Member] | ||
Assets: | ||
Interest-bearing securities | 4,949 | 4,948 |
U.S. Treasury bills [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | ||
Assets: | ||
Interest-bearing securities | 4,949 | 4,948 |
U.S. Treasury bills [Member] | Significant other observable inputs (Level 2) [Member] | ||
Assets: | ||
Interest-bearing securities | 0 | 0 |
U.S. Treasury bills [Member] | Significant unobservable inputs (Level 3) [Member] | ||
Assets: | ||
Interest-bearing securities | 0 | 0 |
Money market mutual funds [Member] | ||
Assets: | ||
Interest-bearing securities | 4,668 | 4,765 |
Money market mutual funds [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | ||
Assets: | ||
Interest-bearing securities | 4,668 | 4,765 |
Money market mutual funds [Member] | Significant other observable inputs (Level 2) [Member] | ||
Assets: | ||
Interest-bearing securities | 0 | 0 |
Money market mutual funds [Member] | Significant unobservable inputs (Level 3) [Member] | ||
Assets: | ||
Interest-bearing securities | 0 | 0 |
Other short-term interest-bearing securities [Member] | ||
Assets: | ||
Interest-bearing securities | 0 | 2 |
Other short-term interest-bearing securities [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | ||
Assets: | ||
Interest-bearing securities | 0 | 0 |
Other short-term interest-bearing securities [Member] | Significant other observable inputs (Level 2) [Member] | ||
Assets: | ||
Interest-bearing securities | 0 | 2 |
Other short-term interest-bearing securities [Member] | Significant unobservable inputs (Level 3) [Member] | ||
Assets: | ||
Interest-bearing securities | $ 0 | $ 0 |
Fair value measurement (Detai_2
Fair value measurement (Details Textual) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | ||
Length of time hedged in foreign currency contracts (or less) | 3 years | |
Long-term debt, fair value | $ 36,700 | $ 39,400 |
Carrying value of debt | $ 32,685 | $ 32,986 |
Derivative instruments (Details
Derivative instruments (Details Textual) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Derivatives designated as hedging instrument [Member] | Foreign currency forward contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, notional amount | $ 5,200 | $ 5,100 |
Derivatives designated as hedging instrument [Member] | Interest Rate Swap [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, notional amount | 5,900 | 5,900 |
Derivatives not designated as hedging instrument [Member] | Foreign currency forward contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, notional amount | 800 | 1,000 |
Long-term debt [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Hedged Liability, Fair Value Hedge | $ 6,085 | $ 6,258 |
Derivative instruments (Cross-c
Derivative instruments (Cross-currency Swaps) (Details) - Cash flow hedge [Member] - Cross-currency swap contracts [Member] € in Millions, £ in Millions, SFr in Millions, $ in Millions | Mar. 31, 2021USD ($) | Mar. 31, 2021EUR (€) | Mar. 31, 2021CHF (SFr) | Mar. 31, 2021GBP (£) |
1.25% 2022 euro Notes [Member] | ||||
Derivative [Line Items] | ||||
Notional amounts | $ 1,388 | € 1,250 | ||
0.41% 2023 Swiss franc Bonds [Member] | ||||
Derivative [Line Items] | ||||
Notional amounts | 704 | SFr 700 | ||
2.00% 2026 euro Notes [Member] | ||||
Derivative [Line Items] | ||||
Notional amounts | 833 | € 750 | ||
5.50% 2026 pound sterling Notes [Member] | ||||
Derivative [Line Items] | ||||
Notional amounts | 747 | £ 475 | ||
4.00% 2029 pound sterling Notes [Member] | ||||
Derivative [Line Items] | ||||
Notional amounts | $ 1,111 | £ 700 | ||
Euro Member Countries, Euro | 1.25% 2022 euro Notes [Member] | ||||
Derivative [Line Items] | ||||
Interest rates | 1.30% | 1.30% | 1.30% | 1.30% |
Euro Member Countries, Euro | 2.00% 2026 euro Notes [Member] | ||||
Derivative [Line Items] | ||||
Interest rates | 2.00% | 2.00% | 2.00% | 2.00% |
Switzerland, Francs | 0.41% 2023 Swiss franc Bonds [Member] | ||||
Derivative [Line Items] | ||||
Interest rates | 0.40% | 0.40% | 0.40% | 0.40% |
United Kingdom, Pounds | 5.50% 2026 pound sterling Notes [Member] | ||||
Derivative [Line Items] | ||||
Interest rates | 5.50% | 5.50% | 5.50% | 5.50% |
United Kingdom, Pounds | 4.00% 2029 pound sterling Notes [Member] | ||||
Derivative [Line Items] | ||||
Interest rates | 4.00% | 4.00% | 4.00% | 4.00% |
United States of America, Dollars | 1.25% 2022 euro Notes [Member] | ||||
Derivative [Line Items] | ||||
Interest rates | 3.20% | 3.20% | 3.20% | 3.20% |
United States of America, Dollars | 0.41% 2023 Swiss franc Bonds [Member] | ||||
Derivative [Line Items] | ||||
Interest rates | 3.40% | 3.40% | 3.40% | 3.40% |
United States of America, Dollars | 2.00% 2026 euro Notes [Member] | ||||
Derivative [Line Items] | ||||
Interest rates | 3.90% | 3.90% | 3.90% | 3.90% |
United States of America, Dollars | 5.50% 2026 pound sterling Notes [Member] | ||||
Derivative [Line Items] | ||||
Interest rates | 6.00% | 6.00% | 6.00% | 6.00% |
United States of America, Dollars | 4.00% 2029 pound sterling Notes [Member] | ||||
Derivative [Line Items] | ||||
Interest rates | 4.50% | 4.50% | 4.50% | 4.50% |
Derivative instruments (Effecti
Derivative instruments (Effective Portion of Unrealized Gain (Loss)) (Details) - Cash flow hedge [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total unrealized gains (losses) | $ 108 | $ (162) |
Foreign currency contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total unrealized gains (losses) | 183 | 239 |
Cross-currency swap contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total unrealized gains (losses) | $ (75) | $ (401) |
Derivative instruments (Hedged
Derivative instruments (Hedged Liabilities and Cumulative Amount) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Derivative [Line Items] | ||
Cumulative amounts of fair value hedging adjustments related to the carrying amounts of the hedged liabilities | $ 391 | $ 566 |
Current portion of long-term debt [Member] | ||
Derivative [Line Items] | ||
Hedged Liability, Fair Value Hedge | 89 | 89 |
Cumulative amounts of fair value hedging adjustments related to the carrying amounts of the hedged liabilities | 89 | 89 |
Carrying value with discontinued hedging relationships | 89 | 89 |
Hedging adjustments on discontinued hedging relationships | 89 | 89 |
Long-term debt [Member] | ||
Derivative [Line Items] | ||
Hedged Liability, Fair Value Hedge | 6,085 | 6,258 |
Cumulative amounts of fair value hedging adjustments related to the carrying amounts of the hedged liabilities | 302 | 477 |
Carrying value with discontinued hedging relationships | 502 | 525 |
Hedging adjustments on discontinued hedging relationships | $ 402 | $ 425 |
Derivative instruments (Summary
Derivative instruments (Summary of Income and Expense Line Items) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Other income, net | $ 13 | $ 11 |
Interest expense, net | (285) | (346) |
Interest rate swap agreements [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) on fair value hedging relationships, Hedged items | 175 | 210 |
Gains (losses) on fair value hedging relationships, Derivatives designated as hedging instruments | (152) | (190) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Cash flow hedges [Member] | Cross-currency swap contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Other income, net | (132) | (133) |
Product sales [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Product sales | 5,592 | 5,894 |
Product sales [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Cash flow hedges [Member] | Foreign currency contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Product sales | $ (1) | $ 49 |
Derivative instruments (Fair Va
Derivative instruments (Fair Value of Derivatives) (Details) - Derivatives designated as hedging instrument [Member] - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Total derivative assets, fair value | $ 265 | $ 349 |
Liabilities | ||
Total derivative liabilities, fair value | 532 | 570 |
Foreign currency contracts [Member] | Other current assets/Other assets [Member] | ||
Assets | ||
Total derivative assets, fair value | 79 | 28 |
Foreign currency contracts [Member] | Accrued liabilities/Other noncurrent liabilities [Member] | ||
Liabilities | ||
Total derivative liabilities, fair value | 107 | 237 |
Cross-currency swap contracts [Member] | Other current assets/Other assets [Member] | ||
Assets | ||
Total derivative assets, fair value | 153 | 255 |
Cross-currency swap contracts [Member] | Accrued liabilities/Other noncurrent liabilities [Member] | ||
Liabilities | ||
Total derivative liabilities, fair value | 291 | 318 |
Interest rate swap contracts [Member] | Other current assets/Other assets [Member] | ||
Assets | ||
Total derivative assets, fair value | 33 | 66 |
Interest rate swap contracts [Member] | Accrued liabilities/Other noncurrent liabilities [Member] | ||
Liabilities | ||
Total derivative liabilities, fair value | $ 134 | $ 15 |
Contingencies and commitments (
Contingencies and commitments (Details) | 1 Months Ended |
May 31, 2020patent | |
Kyprolis ANDA Patent Litigation | |
Loss Contingencies [Line Items] | |
Number Of Asserted Patents | 3 |
Subsequent event (Details)
Subsequent event (Details) - Five Prime Therapeutics, Inc. - Subsequent Event [Member] $ / shares in Units, $ in Billions | 1 Months Ended |
Apr. 30, 2021USD ($)$ / shares | |
Subsequent Event [Line Items] | |
Business Acquisition, Share Price | $ / shares | $ 38 |
Business asset acquisition, consideration transferred | $ | $ 1.9 |