Celgene (CELG) 10-Q 27 Jul 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Jul. 21, 2017
Document and Entity Information
Entity Registrant Name	CELGENE CORP /DE/
Entity Central Index Key	816,284
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		782,350,672

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Revenue:
Net product sales	$ 3,256	$ 2,744	$ 6,206	$ 5,239
Other revenue	12	10	22	27
Total revenue	3,268	2,754	6,228	5,266
Expenses:
Cost of goods sold (excluding amortization of acquired intangible assets)	111	111	224	217
Research and development	835	949	1,830	1,682
Selling, general and administrative	939	732	1,559	1,275
Amortization of acquired intangible assets	88	175	170	267
Acquisition related (income) charges and restructuring, net	(13)	(36)	26	0
Total costs and expenses	1,960	1,931	3,809	3,441
Operating income	1,308	823	2,419	1,825
Other income and (expense):
Interest and investment income, net	24	7	39	14
Interest (expense)	(126)	(123)	(253)	(245)
Other (expense) income, net	(76)	(12)	(50)	23
Income before income taxes	1,130	695	2,155	1,617
Income tax provision	69	97	153	218
Net income	$ 1,061	$ 598	$ 2,002	$ 1,399
Net income per common share:
Basic (in dollars per share)	$ 1.36	$ 0.77	$ 2.57	$ 1.80
Diluted (in dollars per share)	$ 1.31	$ 0.75	$ 2.47	$ 1.74
Weighted average shares:
Basic (in shares)	780.4	775.6	779.7	778.1
Diluted (in shares)	811.7	801.5	811.5	804.7

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ 1,061	$ 598	$ 2,002	$ 1,399
Other comprehensive income (loss):
Foreign currency translation adjustments	31	(15)	41	3
Net unrealized gains (losses) related to cash flow hedges:
Unrealized holding (losses) gains	(153)	31	(234)	(190)
Tax benefit (expense)	7	8	7	18
Unrealized holding (losses) gains, net of tax	(146)	39	(227)	(172)
Reclassification adjustment for (gains) included in net income	(79)	(60)	(163)	(147)
Tax (benefit)	(1)	(1)	(2)	(1)
Reclassification adjustment for (gains) included in net income, net of tax	(80)	(61)	(165)	(148)
Net unrealized gains (losses) on marketable securities available-for-sale:
Unrealized holding gains (losses)	2	29	229	(353)
Tax (expense) benefit	(1)	(12)	(81)	127
Unrealized holding gains (losses), net of tax	1	17	148	(226)
Reclassification adjustment for losses included in net income	34	30	34	40
Tax (benefit)	(13)	(11)	(13)	(14)
Reclassification adjustment for losses included in net income, net of tax	21	19	21	26
Total other comprehensive income (loss)	(173)	(1)	(182)	(517)
Comprehensive income	$ 888	$ 597	$ 1,820	$ 882

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 6,660	$ 6,170
Marketable securities available-for-sale	3,480	1,800
Accounts receivable, net of allowances of $35 and $31 at June 30, 2017 and December 31, 2016, respectively	1,729	1,621
Inventory	533	498
Other current assets	734	779
Total current assets	13,136	10,868
Property, plant and equipment, net	989	930
Intangible assets, net	10,218	10,392
Goodwill	4,866	4,866
Other non-current assets	1,097	1,030
Total assets	30,306	28,086
Current liabilities:
Short-term borrowings and current portion of long-term debt	500	501
Accounts payable	272	247
Accrued expenses and other current liabilities	2,379	2,115
Income taxes payable	32	41
Current portion of deferred revenue	57	55
Total current liabilities	3,240	2,959
Deferred revenue, net of current portion	31	28
Income taxes payable	463	420
Other non-current tax liabilities	2,519	2,519
Other non-current liabilities	1,825	1,771
Long-term debt, net of discount	13,783	13,789
Total liabilities	21,861	21,486
Commitments and Contingencies (Note 15)
Stockholders’ Equity:
Preferred stock, $.01 par value per share, 5.0 million shares authorized; none outstanding at June 30, 2017 and December 31, 2016, respectively	0	0
Common stock, $.01 par value per share, 1,150.0 million shares authorized; issued 964.1 million and 954.1 million shares at June 30, 2017 and December 31, 2016, respectively	10	10
Common stock in treasury, at cost; 182.0 million and 175.5 million shares at June 30, 2017 and December 31, 2016, respectively	(17,069)	(16,281)
Additional paid-in capital	13,174	12,378
Retained earnings	12,093	10,074
Accumulated other comprehensive income	237	419
Total stockholders’ equity	8,445	6,600
Total liabilities and stockholders’ equity	$ 30,306	$ 28,086

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Accounts receivable, allowances (in dollars)	$ 35	$ 31
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	1,150,000,000	1,150,000,000
Common stock, shares issued	964,100,000	954,100,000
Common stock, treasury (in shares)	182,000,000	175,500,000

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities:
Net income	$ 2,002	$ 1,399
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	66	58
Amortization	174	192
Impairment charges	50	133
Deferred income taxes	(186)	(167)
Change in value of contingent consideration	26	(11)
(Gain) on sale of business	0	(38)
Net (gain) on sale of investments	(15)	(7)
Share-based compensation expense	323	304
Share-based employee benefit plan expense	22	20
Derivative instruments	60	(14)
Other, net	(15)	2
Change in current assets and liabilities, excluding the effect of acquisitions:
Accounts receivable	(75)	(81)
Inventory	(32)	(45)
Other operating assets	(184)	100
Accounts payable and other operating liabilities	219	55
Income tax payable	33	96
Deferred revenue	1	(3)
Net cash provided by operating activities	2,469	1,993
Cash flows from investing activities:
Proceeds from sales of marketable securities available-for-sale	2,070	428
Purchases of marketable securities available-for-sale	(3,482)	(432)
Capital expenditures	(132)	(103)
Proceeds from sales of investment securities	14	11
Purchases of investment securities	(85)	(90)
Net cash (used in) investing activities	(1,615)	(186)
Cash flows from financing activities:
Payment for treasury shares	(811)	(1,706)
Net proceeds from common equity put options	0	6
Net proceeds from share-based compensation arrangements	387	76
Net cash (used in) financing activities	(424)	(1,624)
Effect of currency rate changes on cash and cash equivalents	60	0
Net increase in cash and cash equivalents	490	183
Cash and cash equivalents at beginning of period	6,170	4,880
Cash and cash equivalents at end of period	6,660	5,063
Supplemental schedule of non-cash investing and financing activity:
Change in net unrealized (gain) loss on marketable securities available-for-sale	(229)	353
Investment in Human Longevity, Inc. common stock	0	40
Supplemental disclosure of cash flow information:
Interest paid	262	265
Income taxes paid	$ 333	$ 227

Nature of Business and Basis of

Nature of Business and Basis of Presentation	6 Months Ended
	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Business and Basis of Presentation	Nature of Business and Basis of Presentation Celgene Corporation, together with its subsidiaries (collectively “we,” “our,” “us,” “Celgene” or the “Company”), is an integrated global biopharmaceutical company engaged primarily in the discovery, development and commercialization of innovative therapies for the treatment of cancer and inflammatory diseases through next-generation solutions in protein homeostasis, immuno-oncology, epigenetics, immunology and neuro-inflammation. Celgene Corporation was incorporated in the State of Delaware in 1986. Our primary commercial stage products include REVLIMID ® , POMALYST ® /IMNOVID ® , OTEZLA ® , ABRAXANE ® , VIDAZA ® , azacitidine for injection (generic version of VIDAZA ® ) and THALOMID ® (sold as THALOMID ® or Thalidomide Celgene ® outside of the U.S.). In addition, we earn revenue from other product sales and licensing arrangements. The consolidated financial statements include the accounts of Celgene Corporation and its subsidiaries. Investments in limited partnerships and interests where we have an equity interest of 50% or less and do not otherwise have a controlling financial interest are accounted for by either the equity or cost method. We operate in a single segment engaged in the discovery, development, manufacturing, marketing, distribution and sale of innovative therapies for the treatment of cancer and inflammatory diseases. Consistent with our operational structure, our Chief Executive Officer (CEO), as the chief operating decision maker, manages and allocates resources at the global corporate level. Our global research and development organization is responsible for discovery of new drug candidates and supports development and registration efforts for potential future products. Our global supply chain organization is responsible for the manufacturing and supply of products. Regional/therapeutic area commercial organizations market, distribute and sell our products. The business is also supported by global corporate staff functions. Managing and allocating resources at the global corporate level enables our CEO to assess both the overall level of resources available and how to best deploy these resources across functions, therapeutic areas, regional commercial organizations and research and development projects in line with our overarching long-term corporate-wide strategic goals, rather than on a product or franchise basis. Consistent with this decision-making process, our CEO uses consolidated, single-segment financial information for purposes of evaluating performance, allocating resources, setting incentive compensation targets, as well as forecasting future period financial results. The preparation of the consolidated financial statements requires management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. We are subject to certain risks and uncertainties related to, among other things, product development, regulatory approval, market acceptance, scope of patent and proprietary rights, competition, outcome of legal and governmental proceedings, credit risk, technological change and product liability. Interim results may not be indicative of the results that may be expected for the full year. In the opinion of management, these unaudited consolidated financial statements include all normal and recurring adjustments considered necessary for a fair presentation of these interim unaudited consolidated financial statements. Certain prior year amounts have been reclassified to conform to the current year's presentation. Our significant accounting policies are described in Note 1 of Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2016 (2016 Annual Report on Form 10-K).

New Accounting Standards

New Accounting Standards	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
New Accounting Standards	New Accounting Standards New accounting standards which have been adopted In July 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2015-11, "Inventory (Topic 330): Simplifying the Measurement of Inventory" (ASU 2015-11). ASU 2015-11 applies only to inventory for which cost is determined by methods other than last in, first-out and the retail inventory method, which includes inventory that is measured using first-in, first-out or average cost. Inventory within the scope of this standard is required to be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. ASU 2015-11 was effective for us beginning in the first quarter of 2017. The adoption of this standard did not have a material impact on our consolidated financial statements and related disclosures. In March 2016, the FASB issued Accounting Standards Update No. 2016-07, "Investments-Equity Method and Joint Ventures" (ASU 2016-07). ASU 2016-07 eliminates the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively as if the equity method had been in effect during all previous periods that the investment had been held. Under the new guidance, available-for-sale equity securities that become qualified for the equity method of accounting will result in the recognition through earnings of the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. ASU 2016-07 was effective for us beginning in the first quarter of 2017. The adoption of this updated standard did not have a material impact on our consolidated financial statements and related disclosures. In March 2016, the FASB issued Accounting Standards Update No. 2016-09, "Compensation-Stock Compensation" (ASU 2016-09). The new standard was effective for us on January 1, 2017. Among other provisions, the new standard requires that excess tax benefits and tax deficiencies that arise upon vesting or exercise of share-based payments be recognized as income tax benefits and expenses in the income statement. Previously, such amounts were recorded to additional paid-in-capital. This aspect of the new guidance was required to be adopted prospectively, and accordingly, the income tax provisions for the three- and six-month periods ended June 30, 2017 includes $95 million and $170 million , respectively, of excess tax benefits arising from share-based compensation awards that vested or were exercised during the periods. In addition, at January 1, 2017, the Company recorded a cumulative-effect adjustment to retained earnings, with a corresponding increase to net deferred tax assets, in the amount of $18 million related to previously unrecognized excess tax benefits outstanding in the Consolidated Balance Sheet. In addition, the adoption of the new standard increased the diluted share count for the three- and six-month periods ended June 30, 2017 by approximately 7.0 million and 7.3 million shares, respectively. The new standard also amends the presentation of employee share-based payment-related items in the statement of cash flows by requiring that excess income tax benefits and tax deficiencies be classified in Cash flows from operating activities (such amounts were previously included in Cash flows from financing activities). The Company elected to adopt this aspect of the new guidance retrospectively, and accordingly, to conform to the current year presentation, $82 million of excess tax benefits were reclassified from Net Cash Used in Financing Activities to Net Cash Provided by Operating Activities and included within the change in Income taxes payable in the Consolidated Statement of Cash Flows for the six-month period ended June 30, 2016. As a result, Net Cash Used in Financing Activities increased by $82 million with a corresponding increase in Net Cash Provided by Operating Activities in the Consolidated Statement of Cash Flows for the six-month period ended June 30, 2016. New accounting standards which have not yet been adopted In May 2014, the FASB issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers” (ASU 2014-09) and has subsequently issued a number of amendments to ASU 2014-09. The new standard, as amended, provides a single comprehensive model to be used in the accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance, including industry-specific guidance. The standard’s stated core principle is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this core principle, ASU 2014-09 includes provisions within a five step model that includes identifying the contract with a customer, identifying the performance obligations in the contract, determining the transaction price, allocating the transaction price to the performance obligations, and recognizing revenue when, or as, an entity satisfies a performance obligation. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The new standard will be effective for us beginning January 1, 2018 and permits two methods of adoption: the full retrospective method, which requires the standard to be applied to each prior period presented, or the modified retrospective method, which requires the cumulative effect of adoption to be recognized as an adjustment to opening retained earnings in the period of adoption. We will adopt the standard using the modified retrospective method. We have completed an analysis of existing contracts with our customers and assessed the differences in accounting for such contracts under ASU 2014-09 compared with current revenue accounting standards. Based on our review of current customer contracts, we do not expect the implementation of ASU 2014-09 to have a material quantitative impact on our consolidated financial statements as the timing of revenue recognition for product sales is not expected to significantly change. In limited instances, we may recognize revenue earlier than under the current standard. Currently, we defer certain revenue where the price pursuant to the underlying customer arrangement is not fixed and determinable. Under the new standard, such customer arrangements will be accounted for as variable consideration, which may result in revenue being recognized earlier provided we can reliably estimate the ultimate price expected to be realized from the customer. We will continue to assess new customer contracts throughout 2017. The new standard will result in additional revenue-related disclosures in the footnotes to our consolidated financial statements. Adoption of this standard will require changes to our business processes, systems and controls to support the additional required disclosures. We are in the process of identifying and designing such changes to ensure our readiness. In January 2016, the FASB issued Accounting Standards Update No. 2016-01, "Financial Instruments–Overall: Recognition and Measurement of Financial Assets and Financial Liabilities" (ASU 2016-01). ASU 2016-01 changes accounting for equity investments, financial liabilities under the fair value option, and presentation and disclosure requirements for financial instruments. ASU 2016-01 does not apply to equity investments in consolidated subsidiaries or those accounted for under the equity method of accounting. In addition, the FASB clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. Equity investments with readily determinable fair values will be measured at fair value with changes in fair value recognized in net income. Companies have the option to either measure equity investments without readily determinable fair values at fair value or at cost adjusted for changes in observable prices minus impairment. Changes in measurement under either alternative will be recognized in net income. Companies that elect the fair value option for financial liabilities must recognize changes in fair value related to instrument-specific credit risk in other comprehensive income (OCI). Companies must assess valuation allowances for deferred tax assets related to available-for-sale debt securities in combination with their other deferred tax assets. ASU 2016-01 will be effective for us beginning in the first quarter of 2018 and early adoption is available to publicly traded companies to record fair value changes for financial liabilities under the fair value option resulting from instrument-specific credit risk in OCI. We expect the implementation of this standard to have an impact on our consolidated financial statements and related disclosures, as we held publicly traded equity investments as of June 30, 2017 with a fair value of approximately $1.2 billion in a net unrealized gain position of $482 million , and having an associated deferred tax liability of $171 million , as of June 30, 2017 . We will record a cumulative-effect adjustment to retained earnings for the amount of unrealized gains or losses, net of tax at the beginning of the fiscal year of adoption. The guidance related to equity investments without readily determinable fair values should be applied prospectively to equity investments that exist as of the date of adoption. The implementation of ASU 2016-01 is expected to increase volatility in our net income as the volatility currently recorded in OCI related to changes in the fair market value of available-for-sale equity investments will be reflected in net income after adoption. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, "Leases" (ASU 2016-02). ASU 2016-02 provides accounting guidance for both lessee and lessor accounting models. Among other things, lessees will recognize a right-of-use asset and a lease liability for leases with a duration of greater than one year. For income statement purposes, ASU 2016-02 will require leases to be classified as either an operating or finance lease. Operating leases will result in straight-line expense while finance leases will result in a front-loaded expense pattern. The new standard will be effective for us on January 1, 2019 and will be adopted using a modified retrospective approach which will require application of the new guidance at the beginning of the earliest comparative period presented. We are currently evaluating the effect that the updated standard will have on our consolidated financial statements and related disclosures. We expect the implementation of this standard to have an impact on our consolidated financial statements and related disclosures as we had aggregate future minimum lease payments of approximately $213 million as of December 31, 2016 under our portfolio of non-cancelable leased office and research facilities at that time which had various expirations dates between 2017 and 2025 as included in our 2016 Annual Report on Form 10-K. We anticipate recognition of additional assets and corresponding liabilities related to these leases on our consolidated balance sheet. In June 2016, the FASB issued Accounting Standards Update No. 2016-13, "Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments" (ASU 2016-13). ASU 2016-13 requires that expected credit losses relating to financial assets measured on an amortized cost basis and available-for-sale debt securities be recorded through an allowance for credit losses. ASU 2016-13 limits the amount of credit losses to be recognized for available-for-sale debt securities to the amount by which carrying value exceeds fair value and also requires the reversal of previously recognized credit losses if fair value increases. The new standard will be effective for us on January 1, 2020. Early adoption will be available on January 1, 2019. We are currently evaluating the effect that the updated standard will have on our consolidated financial statements and related disclosures. In August 2016, the FASB issued Accounting Standards Update No. 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments" (ASU 2016-15). ASU 2016-15 clarifies how companies present and classify certain cash receipts and cash payments in the statement of cash flows where diversity in practice exists. ASU 2016-15 is effective for us in our first quarter of fiscal 2018 and earlier adoption is permitted. We are currently evaluating the effect that the updated standard will have on our consolidated financial statements and related disclosures. In October 2016, the FASB issued Accounting Standards Update No. 2016-16, "Intra-Entity Transfers of Assets Other Than Inventory” (ASU 2016-16). ASU 2016-16 requires the income tax consequences of intra-entity transfers of assets other than inventory to be recognized as current period income tax expense or benefit and removes the requirement to defer and amortize the consolidated tax consequences of intra-entity transfers. The new standard will be effective for us on January 1, 2018 and will be adopted using a modified retrospective approach which requires a cumulative effect adjustment to retained earnings as of the beginning of the period of adoption. We are currently evaluating the effect that the updated standard will have on our consolidated financial statements and related disclosures. In January 2017, the FASB issued Accounting Standards Update No. 2017-01, “Business Combinations” (ASU 2017-01). ASU 2017-01 provides guidance for evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The guidance provides a screen to determine when an integrated set of assets and activities (a “set”) does not qualify to be a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in an identifiable asset or a group of similar identifiable assets, the set is not a business. If the screen is not met, the guidance requires a set to be considered a business to include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create outputs and removes the evaluation as to whether a market participant could replace the missing elements. The new standard will be effective for us on January 1, 2018 and will be adopted on a prospective basis. Early adoption is permitted. We anticipate that the adoption of this standard will result in more acquisitions being accounted for as asset acquisitions.

Acquisitions and Divestitures

Acquisitions and Divestitures	6 Months Ended
	Jun. 30, 2017
Business Combinations [Abstract]
Acquisitions and Divestitures	Acquisitions and Divestitures Acquisitions Delinia, Inc. (Delinia): On February 3, 2017, we acquired all of the outstanding shares of Delinia, a privately held biotechnology company focused on developing novel therapeutics for the treatment of autoimmune diseases. The transaction expands our Inflammation and Immunology pipeline primarily through the acquisition of Delinia’s lead program, DEL-106, as well as related second generation programs. DEL-106 is a novel IL-2 mutein Fc fusion protein designed to preferentially upregulate regulatory T cells (Tregs), immune cells that are critical to maintaining natural self-tolerance and immune system homeostasis. The consideration included an initial payment of $302 million . In addition, the sellers of Delinia are eligible to receive up to $475 million in contingent development, regulatory and commercial milestones. The acquisition did not include any significant processes and thus, for accounting purposes, we have concluded that the acquired assets did not meet the definition of a business. The initial payment was allocated primarily to the DEL-106 program, resulting in a $300 million research and development asset acquisition expense and approximately $2 million of net assets acquired. Other acquisitions: In addition, during the first quarter of 2017, we acquired all of the outstanding shares of a privately held biotechnology company for total initial consideration of $26 million . The sellers are also eligible to receive up to $210 million in contingent development and regulatory approval milestones. The acquisition did not include any significant processes and thus, for accounting purposes, we have concluded that the acquired assets did not meet the definition of a business. The consideration transferred resulted in a $25 million research and development asset acquisition expense and $1 million of net assets acquired. Divestitures LifebankUSA: In February 2016, we completed the sale of certain assets of Celgene Cellular Therapeutics (CCT) comprising CCT's biobanking business known as LifebankUSA, CCT’s biomaterials portfolio of assets, including Biovance ® , and CCT's rights to PSC-100, a placental stem cell program, to Human Longevity, Inc. (HLI), a genomics and cell therapy-based diagnostic and therapeutic company based in San Diego, California. We received 3.4 million shares of HLI Class A common stock with a fair value of $40 million as consideration in the transaction. The fair value of the shares of common stock we received was determined based on the most recent preferred share offering and reduced for the estimated value of the liquidation preference not offered to common shareholders. The transaction generated a $38 million gain that was recorded on our Consolidated Statement of Income in Other (expense) income, net . As of June 30, 2017, our total investment in HLI represents approximately 14% of HLI's outstanding capital stock.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share Three-Month Periods Ended June 30, Six-Month Periods Ended June 30, (Amounts in millions, except per share) 2017 2016 2017 2016 Net income $ 1,061 $ 598 $ 2,002 $ 1,399 Weighted-average shares: Basic 780.4 775.6 779.7 778.1 Effect of dilutive securities: Options, restricted stock units, performance-based restricted stock units and other 31.3 25.9 31.8 26.6 Diluted 811.7 801.5 811.5 804.7 Net income per share: Basic $ 1.36 $ 0.77 $ 2.57 $ 1.80 Diluted $ 1.31 $ 0.75 $ 2.47 $ 1.74 The total number of potential shares of common stock excluded from the diluted earnings per share computation because their inclusion would have been anti-dilutive was 21.4 million and 19.2 million shares for the three-month periods ended June 30, 2017 and 2016 , respectively, and 22.0 million and 19.7 million shares for the six-month periods ended June 30, 2017 and 2016 , respectively. Share Repurchase Program: During the period of April 2009 through June 30, 2017, our Board of Directors approved repurchases of up to an aggregate of $20.5 billion of our common stock. As part of the management of our share repurchase program, we may, from time to time, sell put options on our common stock with strike prices that we believe represent an attractive price to purchase our shares. If the trading price of our shares exceeds the strike price of the put option at the time the option expires, we will have economically reduced the cost of our share repurchase program by the amount of the premium we received from the sale of the put option. If the trading price of our stock is below the strike price of the put option at the time the option expires, we would purchase the shares covered by the option at the strike price of the put option. During the three-month and six-month periods ended June 30, 2017 and 2016 , we recorded put option activity on our Consolidated Statements of Income in Other (expense) income, net as follows: Three-Month Periods Ended June 30, Six-Month Periods Ended June 30, 2017 2016 2017 2016 Gain from sale of put options $ — $ 3 $ — $ 8 As of June 30, 2017 and December 31, 2016, we had no outstanding put options. We have purchased 4.2 million and 6.8 million shares of common stock under the share repurchase program from all sources at a total cost of $507 million and $811 million during the three- and six-month periods ended June 30, 2017 , respectively. As of June 30, 2017 , we had a remaining share repurchase authorization of $3.9 billion .

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	6 Months Ended
	Jun. 30, 2017
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive Income (Loss) The components of other comprehensive income (loss) consist of changes in pension liability, changes in net unrealized gains (losses) on marketable securities classified as available-for-sale, net unrealized gains (losses) related to cash flow hedges and changes in foreign currency translation adjustments. The accumulated balances related to each component of other comprehensive income (loss), net of tax, are summarized as follows: Pension Liability Adjustment Net Unrealized Gains (Losses) On Available-for-Sale Marketable Securities Net Unrealized Gains (Losses) Related to Cash Flow Hedges Foreign Currency Translation Adjustments Accumulated Other Comprehensive Income (Loss) Balance as of December 31, 2016 $ (38 ) $ 144 $ 415 $ (102 ) $ 419 Other comprehensive income (loss) before reclassifications, net of tax — 148 (227 ) 41 (38 ) Reclassified losses (gains) from accumulated other comprehensive income, net of tax — 21 (165 ) — (144 ) Net current-period other comprehensive income (loss), net of tax — 169 (392 ) 41 (182 ) Balance as of June 30, 2017 $ (38 ) $ 313 $ 23 $ (61 ) $ 237 Balance as of December 31, 2015 $ (14 ) $ 272 $ 586 $ (76 ) $ 768 Other comprehensive (loss) income before reclassifications, net of tax — (226 ) (172 ) 3 (395 ) Reclassified losses (gains) from accumulated other comprehensive income, net of tax — 26 (148 ) — (122 ) Net current-period other comprehensive (loss) income, net of tax — (200 ) (320 ) 3 (517 ) Balance as of June 30, 2016 $ (14 ) $ 72 $ 266 $ (73 ) $ 251 Gains (Losses) Reclassified Out of Accumulated Other Comprehensive Income Accumulated Other Comprehensive Income Components Classification in the Consolidated Statements of Income Three-Month Periods Ended June 30, Six-Month Periods Ended June 30, 2017 2016 2017 2016 Gains (losses) from cash-flow hedges: Foreign exchange contracts Net product sales $ 81 $ 62 $ 167 $ 150 Treasury rate lock agreements Interest (expense) (2 ) (1 ) (3 ) (2 ) Interest rate swap agreements Interest (expense) — (1 ) (1 ) (1 ) Income tax provision 1 1 2 1 Gains (losses) from available-for-sale marketable securities: Realized (loss) on sales of marketable securities Interest and investment income, net (34 ) (30 ) (34 ) (40 ) Income tax provision 13 11 13 14 Total reclassification, net of tax $ 59 $ 42 $ 144 $ 122

Financial Instruments and Fair

Financial Instruments and Fair Value Measurement	6 Months Ended
	Jun. 30, 2017
Fair Value Disclosures [Abstract]
Financial Instruments and Fair Value Measurement	Financial Instruments and Fair Value Measurement The tables below present information about assets and liabilities that are measured at fair value on a recurring basis as of June 30, 2017 and December 31, 2016 and the valuation techniques we utilized to determine such fair value. • Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities. Our level 1 assets consist of marketable equity securities. Our level 1 liability relates to our publicly traded Contingent Value Rights (CVRs). See Note 18 of Notes to Consolidated Financial Statements included in our 2016 Annual Report on Form 10-K for a description of the CVRs. • Level 2 inputs utilize observable quoted prices for similar assets and liabilities in active markets and observable quoted prices for identical or similar assets in markets that are not very active. Our level 2 assets consist primarily of U.S. Treasury securities, U.S. government-sponsored agency securities, U.S. government-sponsored agency mortgage-backed securities (MBS), global corporate debt securities, asset backed securities, ultra short income fund investments, time deposits and repurchase agreements with original maturities of greater than three months, foreign currency forward contracts, purchased foreign currency options and interest rate swap contracts. Our level 2 liabilities relate to written foreign currency options, foreign currency forward contracts and interest rate swap contracts. • Level 3 inputs utilize unobservable inputs and include valuations of assets or liabilities for which there is little, if any, market activity. We do not have any level 3 assets. Our level 3 liabilities consist of contingent consideration related to undeveloped product rights and technology platforms resulting from the acquisitions of Gloucester Pharmaceuticals, Inc. (Gloucester), Nogra Pharma Limited (Nogra), Avila Therapeutics, Inc. (Avila) and Quanticel Pharmaceuticals, Inc. (Quanticel). Our contingent consideration obligations are recorded at their estimated fair values and we revalue these obligations each reporting period until the related contingencies are resolved. The fair value measurements are estimated using probability-weighted discounted cash flow approaches that are based on significant unobservable inputs related to product candidates acquired in business combinations and are reviewed quarterly. These inputs include, as applicable, estimated probabilities and timing of achieving specified development and regulatory milestones, estimated annual sales and the discount rate used to calculate the present value of estimated future payments. Significant changes which increase or decrease the probabilities of achieving the related development and regulatory events, shorten or lengthen the time required to achieve such events, or increase or decrease estimated annual sales would result in corresponding increases or decreases in the fair values of these obligations. Changes in the fair value of contingent consideration obligations are recognized in Acquisition related (income) charges and restructuring, net in the Consolidated Statements of Income. The fair value of our contingent consideration as of June 30, 2017 and December 31, 2016 was calculated using the following significant unobservable inputs: Inputs Ranges (weighted average) utilized as of: June 30, 2017 December 31, 2016 Discount rate 1.5% to 12.0% (8.8%) 1.5% to 12.0% (8.6%) Probability of payment 0% to 95% (42.7%) 0% to 95% (42.0%) Projected year of payment for development and regulatory milestones 2017 to 2029 (2020) 2017 to 2029 (2019) Projected year of payment for sales-based milestones and other amounts calculated as a percentage of annual sales 2020 to 2032 (2025) 2019 to 2033 (2024) The maximum remaining potential payments related to the contingent consideration from the acquisitions of Gloucester, Avila and Quanticel are estimated to be approximately $120 million , $475 million and $314 million , respectively and $1.9 billion plus other amounts calculated as a percentage of annual sales pursuant to the license agreement with Nogra. Balance as of June 30, 2017 Quoted Price in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Available-for-sale securities $ 3,480 $ 1,214 $ 2,266 $ — Forward currency contracts 51 — 51 — Purchased currency options 88 — 88 — Interest rate swaps 18 — 18 — Total assets $ 3,637 $ 1,214 $ 2,423 $ — Liabilities: Contingent value rights $ (54 ) $ (54 ) $ — $ — Written currency options (114 ) — (114 ) — Other acquisition related contingent consideration (1,488 ) — — (1,488 ) Total liabilities $ (1,656 ) $ (54 ) $ (114 ) $ (1,488 ) Balance as of December 31, 2016 Quoted Price in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Available-for-sale securities $ 1,800 $ 891 $ 909 $ — Forward currency contracts 379 — 379 — Purchased currency options 140 — 140 — Interest rate swaps 31 — 31 — Total assets $ 2,350 $ 891 $ 1,459 $ — Liabilities: Contingent value rights $ (44 ) $ (44 ) $ — $ — Written currency options (54 ) — (54 ) — Other acquisition related contingent consideration (1,490 ) — — (1,490 ) Total liabilities $ (1,588 ) $ (44 ) $ (54 ) $ (1,490 ) There were no security transfers between levels 1, 2 and 3 during the three-month periods ended June 30, 2017 and 2016 . The following tables represent a roll-forward of the fair value of level 3 instruments: Three-Month Period Ended June 30, 2017 Liabilities: Gloucester Nogra Avila Quanticel Total Balance as of March 31, 2017 $ (22 ) $ (1,377 ) $ (8 ) $ (120 ) $ (1,527 ) Amounts acquired or issued, including measurement period adjustments — — — — — Net change in fair value — 5 5 10 20 Settlements, including transfers to Accrued expenses and other current liabilities — — — 19 19 Balance as of June 30, 2017 $ (22 ) $ (1,372 ) $ (3 ) $ (91 ) $ (1,488 ) Three-Month Period Ended June 30, 2016 Liabilities: Gloucester Nogra Avila Quanticel Total Balance as of March 31, 2016 $ (19 ) $ (1,267 ) $ (96 ) $ (168 ) $ (1,550 ) Amounts acquired or issued, including measurement period adjustments — — — — — Net change in fair value (1 ) (28 ) 81 (2 ) 50 Settlements, including transfers to Accrued expenses and other current liabilities — — — 30 30 Balance as of June 30, 2016 $ (20 ) $ (1,295 ) $ (15 ) $ (140 ) $ (1,470 ) There were no security transfers between levels 1, 2 and 3 during the six-month periods ended June 30, 2017 and 2016 . The following tables represent a roll-forward of the fair value of level 3 instruments: Six-Month Period Ended June 30, 2017 Liabilities: Gloucester Nogra Avila Quanticel Total Balance as of December 31, 2016 $ (21 ) $ (1,346 ) $ (8 ) $ (115 ) $ (1,490 ) Amounts acquired or issued, including measurement period adjustments — — — — — Net change in fair value (1 ) (26 ) 5 5 (17 ) Settlements, including transfers to Accrued expenses and other current liabilities — — — 19 19 Balance as of June 30, 2017 $ (22 ) $ (1,372 ) $ (3 ) $ (91 ) $ (1,488 ) Six-Month Period Ended June 30, 2016 Liabilities: Gloucester Nogra Avila Quanticel Total Balance as of December 31, 2015 $ (19 ) $ (1,239 ) $ (97 ) $ (167 ) $ (1,522 ) Amounts acquired or issued, including measurement period adjustments — — — — — Net change in fair value (1 ) (56 ) 82 (3 ) 22 Settlements, including transfers to Accrued expenses and other current liabilities — — — 30 30 Balance as of June 30, 2016 $ (20 ) $ (1,295 ) $ (15 ) $ (140 ) $ (1,470 )

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activities	6 Months Ended
	Jun. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments and Hedging Activities	Derivative Instruments and Hedging Activities Our revenue and earnings, cash flows and fair values of assets and liabilities can be impacted by fluctuations in foreign exchange rates and interest rates. We actively manage the impact of foreign exchange rate and interest rate movements through operational means and through the use of various financial instruments, including derivative instruments such as foreign currency option contracts, foreign currency forward contracts, treasury rate lock agreements and interest rate swap contracts. In instances where these financial instruments are accounted for as cash flow hedges or fair value hedges we may from time to time terminate the hedging relationship. If a hedging relationship is terminated, we generally either settle the instrument or enter into an offsetting instrument. Foreign Currency Risk Management We maintain a foreign exchange exposure management program to mitigate the impact of volatility in foreign exchange rates on future foreign currency cash flows, translation of foreign earnings and changes in the fair value of assets and liabilities denominated in foreign currencies. Through our revenue hedging program, we endeavor to reduce the impact of possible unfavorable changes in foreign exchange rates on our future U.S. Dollar cash flows that are derived from foreign currency denominated sales. To achieve this objective, we hedge a portion of our forecasted foreign currency denominated sales that are expected to occur in the foreseeable future, typically within the next three years, with a maximum of five years . We manage our anticipated transaction exposure principally with foreign currency forward contracts, a combination of foreign currency put and call options, and occasionally purchased foreign currency put options. Foreign Currency Forward Contracts: We use foreign currency forward contracts to hedge specific forecasted transactions denominated in foreign currencies, manage exchange rate volatility in the translation of foreign earnings, and reduce exposures to foreign currency fluctuations of certain assets and liabilities denominated in foreign currencies. We manage a portfolio of foreign currency forward contracts to protect against changes in anticipated foreign currency cash flows resulting from changes in foreign currency exchange rates, primarily associated with non-functional currency denominated revenues and expenses of foreign subsidiaries. The foreign currency forward hedging contracts outstanding as of June 30, 2017 and December 31, 2016 had settlement dates within 25 months and 31 months , respectively. The spot rate components of these foreign currency forward contracts are designated as cash flow hedges and, to the extent effective, any unrealized gains or losses are reported in OCI and reclassified to operations in the same periods during which the underlying hedged transactions affect earnings. If a hedging relationship is terminated with respect to a foreign currency forward contract, accumulated gains or losses associated with the contract remain in OCI until the hedged forecasted transaction occurs and are reclassified to operations in the same periods during which the underlying hedged transactions affect earnings. Any ineffectiveness on these foreign currency forward contracts is reported on the Consolidated Statements of Income in Other (expense) income, net . The forward point components of these foreign currency forward contracts are not designated as cash flow hedges and all fair value adjustments of forward point amounts are recorded on the Consolidated Statements of Income in Other (expense) income, net . Foreign currency forward contracts entered into to hedge forecasted revenue and expenses were as follows as of June 30, 2017 and December 31, 2016 : Notional Amount Foreign Currency June 30, 2017 December 31, 2016 Australian Dollar $ 69 $ 49 British Pound 161 199 Canadian Dollar 270 193 Euro 1,367 1,812 Japanese Yen 601 597 Total $ 2,468 $ 2,850 We consider the impact of our own and the counterparties’ credit risk on the fair value of the contracts as well as the ability of each party to execute its obligations under the contract on an ongoing basis. As of June 30, 2017 , credit risk did not materially change the fair value of our foreign currency forward contracts. We also manage a portfolio of foreign currency contracts to reduce exposures to foreign currency fluctuations of certain recognized assets and liabilities denominated in foreign currencies and, from time to time, we enter into foreign currency contracts to manage exposure related to translation of foreign earnings. These foreign currency forward contracts have not been designated as hedges and, accordingly, any changes in their fair value are recognized on the Consolidated Statements of Income in Other (expense) income, net in the current period. The aggregate notional amount of the foreign currency forward non-designated hedging contracts outstanding as of June 30, 2017 and December 31, 2016 were $1.1 billion and $934 million , respectively. Foreign Currency Option Contracts: From time to time, we may hedge a portion of our future foreign currency exposure by utilizing a strategy that involves both a purchased local currency put option and a written local currency call option that are accounted for as hedges of future sales denominated in that local currency. Specifically, we sell (or write) a local currency call option and purchase a local currency put option with the same expiration dates and local currency notional amounts but with different strike prices. This combination of transactions is generally referred to as a “collar.” The expiration dates and notional amounts correspond to the amount and timing of forecasted foreign currency sales. The foreign currency option contracts outstanding as of June 30, 2017 and December 31, 2016 had settlement dates within 42 months and 48 months , respectively. If the U.S. Dollar weakens relative to the currency of the hedged anticipated sales, the purchased put option value reduces to zero and we benefit from the increase in the U.S. Dollar equivalent value of our anticipated foreign currency cash flows; however, this benefit would be capped at the strike level of the written call, which forms the upper end of the collar. The premium collected from the sale of the call option is equal to the premium paid for the purchased put option, resulting in a net zero cost for each collar. Outstanding foreign currency option contracts entered into to hedge forecasted revenue were as follows as of June 30, 2017 and December 31, 2016 : Notional Amount 1 June 30, 2017 December 31, 2016 Foreign currency option contracts designated as hedging activity: Purchased Put $ 3,181 $ 1,790 Written Call 3,580 2,009 1 U.S. Dollar notional amounts are calculated as the hedged local currency amount multiplied by the strike value of the foreign currency option. The local currency notional amounts of our purchased put and written call that are designated as hedging activities are equal to each other. We also have entered into foreign currency put option contracts to hedge forecasted revenue which were not part of a collar strategy. Such put option contracts had a notional value of $510 million and $387 million as of June 30, 2017 and December 31, 2016, respectively, and settlement dates within 18 months and 24 months , respectively. Interest Rate Risk Management Forward Starting Interest Rate Swaps and Treasury Rate Locks: In anticipation of issuing fixed-rate debt, we may use forward starting interest rate swaps (forward starting swaps) or treasury rate lock agreements (treasury rate locks) that are designated as cash flow hedges to hedge against changes in interest rates that could impact expected future issuances of debt. To the extent these hedges of cash flows related to anticipated debt are effective, any realized or unrealized gains or losses on the forward starting swaps or treasury rate locks are reported in OCI and are recognized in income over the life of the anticipated fixed-rate notes. As of June 30, 2017 and December 31, 2016 , we had outstanding forward starting swaps with effective dates in 2017 and 2018 and maturing in ten years that were designated as cash flow hedges with notional amounts as shown in the table below: Notional Amount June 30, 2017 December 31, 2016 Forward starting interest rate swap contracts: Forward starting swaps with effective dates in 2017 $ 500 $ 500 Forward starting swaps with effective dates in 2018 500 500 Interest Rate Swap Contracts: From time to time we hedge the fair value of certain debt obligations through the use of interest rate swap contracts. The interest rate swap contracts are designated hedges of the fair value changes in the notes attributable to changes in interest rates. Since the specific terms and notional amount of the swap are intended to match those of the debt being hedged, it is assumed to be a highly effective hedge and all changes in fair value of the swap are recorded on the Consolidated Balance Sheet with no net impact recorded in income. Any net interest payments made or received on interest rate swap contracts are recognized as interest expense on the Consolidated Statements of Income. If a hedging relationship is terminated for an interest rate swap contract, accumulated gains or losses associated with the contract are measured and recorded as a reduction or increase of current and future interest expense associated with the previously hedged debt obligations. The following table summarizes the notional amounts of our outstanding interest rate swap contracts as of June 30, 2017 and December 31, 2016: Notional Amount June 30, 2017 December 31, 2016 Interest rate swap contracts entered into as fair value hedges of the following fixed-rate senior notes: 3.875% senior notes due 2025 $ 200 $ 200 We have entered into swap contracts that were designated as hedges of certain of our fixed rate notes in 2017 and 2016 and also terminated the hedging relationship by settling certain of those swap contracts during 2017. The settlement of swap contracts resulted in the receipt of net proceeds which was not material during the three- and six-month periods ended June 30, 2017, which is accounted for as a reduction of current and future interest expense associated with these notes. See Note 11 for additional details related to reductions of current and future interest expense. The following tables summarize the fair value and presentation in the Consolidated Balance Sheets for derivative instruments as of June 30, 2017 and December 31, 2016 : June 30, 2017 Consolidated Balance Sheet Classification Fair Value Instrument Asset Derivatives Liability Derivatives Derivatives designated as hedging instruments: Foreign exchange contracts 1 Other current assets $ 81 $ 23 Accrued expenses and other current liabilities 8 13 Other non-current assets 33 26 Other non-current liabilities 53 100 Interest rate swap agreements Other current assets 3 — Other non-current assets 27 9 Other non-current liabilities — 4 Derivatives not designated as hedging instruments: Foreign exchange contracts 1 Other current assets 24 7 Accrued expenses and other current liabilities — 5 Interest rate swap agreements Other current assets 2 2 Other non-current assets 2 1 Total $ 233 $ 190 1 Derivative instruments in this category are subject to master netting arrangements and are presented on a net basis in the Consolidated Balance Sheet in accordance with ASC 210-20. December 31, 2016 Consolidated Balance Sheet Classification Fair Value Instrument Asset Derivatives Liability Derivatives Derivatives designated as hedging instruments: Foreign exchange contracts 1 Other current assets $ 317 $ 10 Other non-current assets 178 71 Interest rate swap agreements Other current assets 1 — Other non-current assets 38 7 Other non-current liabilities — 2 Derivatives not designated as hedging instruments: Foreign exchange contracts 1 Other current assets 57 4 Accrued expenses and other current liabilities — 2 Interest rate swap agreements Other current assets 2 2 Other non-current assets 3 2 Total $ 596 $ 100 1 Derivative instruments in this category are subject to master netting arrangements and are presented on a net basis in the Consolidated Balance Sheet in accordance with ASC 210-20. The following tables summarize the effect of derivative instruments designated as cash flow hedging instruments on the Consolidated Statements of Income for the three-month periods ended June 30, 2017 and 2016 : Three-Month Period Ended June 30, 2017 (Effective Portion) (Ineffective Portion and Amount Excluded From Effectiveness Testing) Instrument Amount of 1 Classification of Amount of Classification of Amount of Foreign exchange contracts $ (136 ) Net product sales $ 81 Other (expense) income, net $ (43 ) 2 Treasury rate lock agreements — Interest (expense) (2 ) Other (expense) income, net — Interest rate swap agreements (17 ) Interest (expense) — Other (expense) income, net — 1 Net gains of $29 million are expected to be reclassified from Accumulated OCI into income in the next 12 months. 2 The amount of net losses recognized in income represents $43 million of losses related to amounts excluded from the assessment of hedge effectiveness (fair value adjustments of forward point amounts). Three-Month Period Ended June 30, 2016 (Effective Portion) (Ineffective Portion and Amount Excluded From Effectiveness Testing) Instrument Amount of Classification of Amount of Classification of Amount of Foreign exchange contracts $ 53 Net product sales $ 62 Other (expense) income, net $ 9 1 Treasury rate lock agreements — Interest (expense) (1 ) Other (expense) income, net — Interest rate swap agreements (22 ) Interest (expense) (1 ) Other (expense) income, net — 1 The amount of net gains recognized in income represents $8 million of gains related to amounts excluded from the assessment of hedge effectiveness (fair value adjustments of forward point amounts) and $1 million of gains related to the ineffective portion of the hedging relationships. The following tables summarize the effect of derivative instruments designated as cash flow hedging instruments on the Consolidated Statements of Income for the six-month periods ended June 30, 2017 and 2016 : Six-Month Period Ended June 30, 2017 (Effective Portion) (Ineffective Portion and Amount Excluded From Effectiveness Testing) Instrument Amount of 1 Classification of Amount of Classification of Amount of Foreign exchange contracts $ (217 ) Net product sales $ 167 Other (expense) income, net $ (24 ) 2 Treasury rate lock agreements — Interest (expense) (3 ) Other (expense) income, net — Interest rate swap agreements (17 ) Interest (expense) (1 ) Other (expense) income, net — 1 Net gains of $29 million are expected to be reclassified from Accumulated OCI into income in the next 12 months. 2 The amount of net losses recognized in income represents $24 million of losses related to amounts excluded from the assessment of hedge effectiveness (fair value adjustments of forward point amounts). Six-Month Period Ended June 30, 2016 (Effective Portion) (Ineffective Portion and Amount Excluded From Effectiveness Testing) Instrument Amount of Classification of Amount of Classification of Amount of Foreign exchange contracts $ (142 ) Net product sales $ 150 Other (expense) income, net $ 23 1 Treasury rate lock agreements — Interest (expense) (2 ) Other (expense) income, net — Interest rate swap agreements (48 ) Interest (expense) (1 ) Other (expense) income, net — 1 The amount of net gains recognized in income represents $21 million of gains related to amounts excluded from the assessment of hedge effectiveness (fair value adjustments of forward point amounts) and $2 million of gains related to the ineffective portion of the hedging relationships. The following table summarizes the effect of derivative instruments designated as fair value hedging instruments on the Consolidated Statements of Income for the three- and six-month periods ended June 30, 2017 and 2016 : Amount of Gain Recognized in Income on Derivative Classification of Gain Recognized in Income on Derivative Three-Month Periods Ended June 30, Six-Month Periods Ended June 30, Instrument 2017 2016 2017 2016 Interest rate swap agreements Interest (expense) $ 10 $ 13 $ 19 $ 26 The following table summarizes the effect of derivative instruments not designated as hedging instruments on the Consolidated Statements of Income for the three- and six-month periods ended June 30, 2017 and 2016 : Amount of (Loss) Gain Recognized in Income on Derivative Classification of (Loss) Gain Recognized in Income on Derivative Three-Month Periods Ended June 30, Six-Month Periods Ended June 30, Instrument 2017 2016 2017 2016 Foreign exchange contracts Other (expense) income, net $ (20 ) $ — $ (42 ) $ (28 ) Put options on our common stock Other (expense) income, net — 3 — 8 The impact of gains and losses on foreign exchange contracts not designated as hedging instruments related to changes in the fair value of assets and liabilities denominated in foreign currencies are generally offset by net foreign exchange gains and losses, which are also included on the Consolidated Statements of Income in Other (expense) income, net for all periods presented. When we enter into foreign exchange contracts not designated as hedging instruments to mitigate the impact of exchange rate volatility in the translation of foreign earnings, gains and losses will generally be offset by fluctuations in the U.S. Dollar translated amounts of each Income Statement account in current and/or future periods.

Cash, Cash Equivalents and Mark

Cash, Cash Equivalents and Marketable Securities Available-for-Sale	6 Months Ended
	Jun. 30, 2017
Cash, Cash Equivalents, and Short-term Investments [Abstract]
Cash, Cash Equivalents and Marketable Securities Available-for-Sale	Cash, Cash Equivalents and Marketable Securities Available-for-Sale Time deposits, repurchase agreements, and commercial paper instruments with original maturities less than three months and money market funds are included in Cash and cash equivalents. As of June 30, 2017 , the carrying value of our time deposits and repurchase agreements was $1.8 billion , commercial paper instruments was $161 million , and money market funds was $3.4 billion , all of which are included in Cash and cash equivalents. As of December 31, 2016 , the carrying value of our time deposits and repurchase agreements was $2.8 billion , commercial paper instruments was $65 million , and money market funds was $1.6 billion , all of which were included in Cash and cash equivalents. The carrying values approximated fair value as of June 30, 2017 and December 31, 2016 . The amortized cost, gross unrealized holding gains, gross unrealized holding losses and estimated fair value of available-for-sale securities by major security type and class of security as of June 30, 2017 and December 31, 2016 were as follows: June 30, 2017 Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Estimated Fair Value U.S. Treasury securities $ 100 $ — $ (1 ) $ 99 U.S. government-sponsored agency securities 23 — — 23 U.S. government-sponsored agency MBS 21 — (1 ) 20 Corporate debt - global 939 — — 939 Asset backed securities 9 — — 9 Ultra short income fund 350 — — 350 Time deposits 1 and Repurchase agreements 1 826 — — 826 Marketable equity securities 732 486 (4 ) 1,214 Total available-for-sale marketable securities $ 3,000 $ 486 $ (6 ) $ 3,480 December 31, 2016 Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Estimated Fair Value U.S. Treasury securities $ 121 $ — $ (1 ) $ 120 U.S. government-sponsored agency MBS 31 — — 31 Corporate debt - global 378 — (1 ) 377 Asset backed securities 17 — — 17 Time deposits 1 364 — — 364 Marketable equity securities 672 238 (19 ) 891 Total available-for-sale marketable securities $ 1,583 $ 238 $ (21 ) $ 1,800 1 Have original maturities of greater than three months. U.S. Treasury securities include government debt instruments issued by the U.S. Department of the Treasury. U.S. government-sponsored agency securities include general unsecured obligations either issued directly by or guaranteed by U.S. government sponsored enterprises. U.S. government-sponsored agency MBS include mortgage-backed securities issued by the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation and the Government National Mortgage Association. Corporate debt-global includes obligations issued by investment-grade corporations, including some issues that have been guaranteed by governments and government agencies. Asset backed securities consist of triple-A rated securities with cash flows collateralized by credit card receivables and auto loans. Ultra short income fund includes investments in certificates of deposit, repurchase agreements, commercial paper and corporate notes. Time deposits and repurchase agreements in the tables above have original maturities greater than three months. Our repurchase agreements are collateralized by U.S. government securities, cash, bonds, commercial paper and bank certificates of deposit. As of June 30, 2017 , all of our time deposits and repurchase agreements had original maturities less than one year. Marketable equity securities consist of investments in publicly traded equity securities. Duration periods of available-for-sale debt securities as of June 30, 2017 were as follows: Amortized Cost Fair Value Duration of one year or less $ 997 $ 997 Duration of one through three years 438 437 Duration of three through five years 7 6 Total $ 1,442 $ 1,440

Inventory

Inventory	6 Months Ended
	Jun. 30, 2017
Inventory Disclosure [Abstract]
Inventory	Inventory Inventories as of June 30, 2017 and December 31, 2016 are summarized by major category as follows: June 30, 2017 December 31, 2016 Raw materials $ 267 $ 274 Work in process 109 87 Finished goods 157 137 Total $ 533 $ 498

Intangible Assets and Goodwill

Intangible Assets and Goodwill	6 Months Ended
	Jun. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets and Goodwill	Intangible Assets and Goodwill Intangible Assets: Our finite-lived intangible assets primarily consist of developed product rights and technology obtained from the Pharmion Corp. (Pharmion), Gloucester, Abraxis BioScience, Inc. (Abraxis), Avila and Quanticel acquisitions. Our indefinite lived intangible assets consist of acquired in-process research and development (IPR&D) product rights from the Receptos Inc. (Receptos), Nogra and Gloucester acquisitions. The gross carrying amount and accumulated amortization of intangible assets as of June 30, 2017 and December 31, 2016 are summarized as follows: June 30, 2017 Gross Carrying Value Accumulated Amortization Intangible Assets, Net Amortizable intangible assets: Acquired developed product rights $ 3,406 $ (1,816 ) $ 1,590 Technology 483 (373 ) 110 Licenses 66 (29 ) 37 Other 43 (33 ) 10 3,998 (2,251 ) 1,747 Non-amortizable intangible assets: Acquired IPR&D product rights 8,471 — 8,471 Total intangible assets $ 12,469 $ (2,251 ) $ 10,218 December 31, 2016 Gross Carrying Value Accumulated Amortization Intangible Assets, Net Amortizable intangible assets: Acquired developed product rights $ 3,406 $ (1,694 ) $ 1,712 Technology 483 (326 ) 157 Licenses 66 (26 ) 40 Other 43 (31 ) 12 3,998 (2,077 ) 1,921 Non-amortizable intangible assets: Acquired IPR&D product rights 8,471 — 8,471 Total intangible assets $ 12,469 $ (2,077 ) $ 10,392 Amortization expense related to intangible assets was $89 million and $176 million for the three-month periods ended June 30, 2017 and 2016 , respectively, and $173 million and $270 million for the six-month periods ended June 30, 2017 and 2016 , respectively. The amortization expense decrease for the three-month and six-month periods primarily related to the previously disclosed impairment of the technology platform asset in the second quarter of 2016, which was obtained in the acquisition of Avila. Assuming no changes in the gross carrying amount of finite lived intangible assets, the future annual amortization expense related to intangible assets is expected to be approximately $336 million in 2017, $252 million in 2018, $156 million in 2019, $154 million in 2020 and $152 million in 2021. Goodwill: As of June 30, 2017 and December 31, 2016, our goodwill related to the 2015 acquisitions of Receptos and Quanticel, 2014 acquisition of Nogra, 2012 acquisition of Avila, 2010 acquisitions of Abraxis and Gloucester, 2008 acquisition of Pharmion and 2004 acquisition of Penn T Limited.

Debt

Debt	6 Months Ended
	Jun. 30, 2017
Debt Disclosure [Abstract]
Debt	Debt Short-Term Borrowings and Current Portion of Long-Term Debt: We had no outstanding short-term borrowings as of June 30, 2017 or December 31, 2016 . The current portion of long-term debt outstanding as of June 30, 2017 and December 31, 2016 includes: June 30, 2017 December 31, 2016 1.900% senior notes due 2017 $ 500 $ 501 Long-Term Debt: Our outstanding senior notes with maturity dates in excess of one year after June 30, 2017 have an aggregate principal amount of $13.750 billion with varying maturity dates and interest rates. The carrying values of the long-term portion of these senior notes as of June 30, 2017 and December 31, 2016 includes: June 30, 2017 December 31, 2016 2.125% senior notes due 2018 $ 999 $ 998 2.300% senior notes due 2018 401 402 2.250% senior notes due 2019 507 509 2.875% senior notes due 2020 1,494 1,493 3.950% senior notes due 2020 516 518 3.250% senior notes due 2022 1,049 1,054 3.550% senior notes due 2022 994 994 4.000% senior notes due 2023 740 744 3.625% senior notes due 2024 1,001 1,001 3.875% senior notes due 2025 2,480 2,475 5.700% senior notes due 2040 247 247 5.250% senior notes due 2043 393 393 4.625% senior notes due 2044 987 987 5.000% senior notes due 2045 1,975 1,974 Total long-term debt $ 13,783 $ 13,789 As of June 30, 2017 and December 31, 2016, the fair value of our outstanding Senior Notes was approximately $15.0 billion and $14.6 billion , respectively, and represented a Level 2 measurement within the fair value measurement hierarchy. From time to time, we have used treasury rate locks and forward starting interest rate swap contracts to hedge against changes in interest rates in anticipation of issuing fixed-rate notes. As of June 30, 2017 , a balance of $57 million in net losses remained in accumulated other comprehensive income related to the settlement of these derivative instruments and will be recognized as interest expense over the life of the notes. As of June 30, 2017 , we were party to pay-floating, receive-fixed interest rate swap contracts designated as fair value hedges of fixed-rate notes as described in Note 7. Our swap contracts outstanding as of June 30, 2017 effectively converted the hedged portion of our fixed-rate notes to floating rates. From time to time, we terminate the hedging relationship on certain of our swap contracts by settling the contracts or by entering into offsetting contracts. Any net proceeds received or paid in these settlements are accounted for as a reduction or increase of current and future interest expense associated with the previously hedged notes. As of June 30, 2017 and December 31, 2016 , we had balances of $158 million and $174 million , respectively, of net unamortized gains recorded as a component of our debt as a result of past swap contract settlements. See Note 7 for additional details related to interest rate swap contract activity. Commercial Paper: In April 2016, our Board of Directors authorized an increase in the maximum amount of commercial paper issuable to $2.0 billion . As of June 30, 2017 and December 31, 2016 , we had available capacity to issue up to $2.0 billion of Commercial Paper, and there were no borrowings under the program. Senior Unsecured Credit Facility: We maintain a senior unsecured revolving credit facility (Credit Facility) that provides revolving credit in the aggregate amount of $2.0 billion . During the second quarter of 2017, we amended our Credit Facility to extend the expiration date to April 17, 2022. Amounts may be borrowed in U.S. Dollars for general corporate purposes. The Credit Facility currently serves as backup liquidity for our commercial paper borrowings. As of June 30, 2017 and December 31, 2016 , there was no outstanding borrowings against the Credit Facility. The Credit Facility contains affirmative and negative covenants, including certain customary financial covenants. We were in compliance with all financial covenants as of June 30, 2017 .

Share-Based Compensation

Share-Based Compensation	6 Months Ended
	Jun. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-Based Compensation	Share-Based Compensation We have a stockholder-approved stock incentive plan, the Celgene Corporation 2017 Stock Incentive Plan (formerly the 2008 Stock Incentive Plan) (Plan) that provides for the granting of options, restricted stock units (RSUs), performance stock units (PSUs) and other share-based awards to our employees, officers and non-employee directors. The Management Compensation and Development Committee of the Board of Directors (Compensation Committee) may determine the type, amount and terms, including vesting, of any awards made under the Plan. The following table summarizes the components of share-based compensation expense in the Consolidated Statements of Income for the three- and six-month periods ended June 30, 2017 and 2016 : Three-Month Periods Ended June 30, Six-Month Periods Ended June 30, 2017 2016 2017 2016 Cost of goods sold (excluding amortization of acquired intangible assets) $ 8 $ 9 $ 15 $ 18 Research and development 70 64 135 126 Selling, general and administrative 92 85 173 160 Total share-based compensation expense 170 158 323 304 Tax benefit related to share-based compensation expense 46 44 87 84 Reduction in income $ 124 $ 114 $ 236 $ 220 The tax benefit related to share-based compensation expense above excludes excess tax benefits of $95 million and $170 million from share-based compensation awards that vested or were exercised during the three- and six-month periods ended June 30, 2017, respectively. See Note 2 for additional information related to the adoption of ASU 2016-09. The following table summarizes the activity for stock options, RSUs and PSUs for the six-month period ended June 30, 2017 (in millions unless otherwise noted): Stock Options RSUs PSUs (in thousands) Outstanding as of December 31, 2016 73.8 7.1 463 Changes during the Year: Granted 5.9 1.5 169 Exercised / Released (9.7 ) (0.3 ) (1 ) Forfeited (0.9 ) (0.3 ) (27 ) Outstanding as of June 30, 2017 69.1 8.0 604 Total compensation cost related to unvested awards not yet recognized and the weighted-average periods over which the awards are expected to be recognized as of June 30, 2017 were as follows (dollars in millions): Stock Options RSUs PSUs Unrecognized compensation cost $ 561 $ 405 $ 35 Expected weighted-average period in years of compensation cost to be recognized 2.1 1.5 1.6

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2017
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes We adopted ASU 2016-09, effective January 1, 2017. See Note 2 for additional information related to the adoption of this accounting standard update. We regularly evaluate the likelihood of the realization of our deferred tax assets and reduce the carrying amount of those deferred tax assets by a valuation allowance to the extent we believe a portion will not be realized. We consider many factors when assessing the likelihood of future realization of our deferred tax assets, including recent cumulative earnings experience by taxing jurisdiction, expectations of future taxable income, the carryforward periods available to us for tax reporting purposes and other relevant factors. Significant judgment is required in making this assessment. Our tax returns are under routine examination in many taxing jurisdictions. The scope of these examinations includes, but is not limited to, the review of our taxable presence in a jurisdiction, our deduction of certain items, our claims for research and development credits, our compliance with transfer pricing rules and regulations and the inclusion or exclusion of amounts from our tax returns as filed. Our U.S. federal income tax returns have been audited by the Internal Revenue Service (IRS) through the year ended December 31, 2008. Tax returns for the years ended December 31, 2009, 2010 and 2011 are currently under examination by the IRS. We are also subject to audits by various state and foreign taxing authorities, including most U.S. states and countries where we have operations. We regularly reevaluate our tax positions and the associated interest and penalties, if applicable, resulting from audits of federal, state and foreign income tax filings, as well as changes in tax law (including regulations, administrative pronouncements, judicial precedents, etc.) that would reduce the technical merits of the position to below more likely than not. We believe that our accruals for tax liabilities are adequate for all open years. Many factors are considered in making these evaluations, including past history, recent interpretations of tax law and the specifics of each matter. Because tax regulations are subject to interpretation and tax litigation is inherently uncertain, these evaluations can involve a series of complex judgments about future events and can rely heavily on estimates and assumptions. We apply a variety of methodologies in making these estimates and assumptions, which include studies performed by independent economists, advice from industry and subject matter experts, evaluation of public actions taken by the IRS and other taxing authorities, as well as our industry experience. These evaluations are based on estimates and assumptions that have been deemed reasonable by management. However, if management’s estimates are not representative of actual outcomes, our results of operations could be materially impacted. Unrecognized tax benefits, generally represented by liabilities on the Consolidated Balance Sheets and all subject to tax examinations, arise when the estimated benefit recorded in the financial statements differs from the amounts taken or expected to be taken in a tax return because of the uncertainties described above. These unrecognized tax benefits relate primarily to issues common among multinational corporations. Virtually all of these unrecognized tax benefits, if recognized, would impact the effective income tax rate. We account for interest and potential penalties related to uncertain tax positions as part of our provision for income taxes. For the six-month period ended June 30, 2017 gross unrecognized tax benefits increased by $42 million , primarily from an increase in unrecognized tax benefits related to current year operations of $34 million and accrued interest of $8 million . The liability for unrecognized tax benefits is expected to increase in the next 12 months relating to operations occurring in that period. Any settlements of examinations with taxing authorities or statute of limitations expirations would likely result in a decrease in our liability for unrecognized tax benefits and a corresponding increase in taxes paid or payable and/or a decrease in income tax expense. It is reasonably possible that the amount of the liability for unrecognized tax benefits could change by a significant amount during the next twelve-month period as a result of settlements or statute of limitations expirations. Finalizing examinations with the relevant taxing authorities can include formal administrative and legal proceedings and, as a result, it is difficult to estimate the timing and range of possible change related to the Company’s unrecognized tax benefits. An estimate of the range of possible change cannot be made until issues are further developed or examinations close. Our estimates of tax benefits and potential tax benefits may not be representative of actual outcomes and variation from such estimates could materially affect our consolidated financial statements in the period of settlement or when the statutes of limitations expire.

Collaboration Agreements

Collaboration Agreements	6 Months Ended
	Jun. 30, 2017
Collaboration Agreements [Abstract]
Collaboration Agreements	Collaboration Arrangements We enter into collaborative arrangements for the research and development, license, manufacture and/or commercialization of products and/or product candidates. In addition, we also acquire products, product candidates and research and development technology rights and establish research and development collaborations with third parties to enhance our strategic position within our industry by strengthening and diversifying our research and development capabilities, product pipeline and marketed product base. These arrangements may include non-refundable, upfront payments, payments by us for options to acquire rights to products and product candidates and other rights, as well as contingent obligations by us for potential development, regulatory and commercial performance milestone payments, cost sharing arrangements, royalty payments, profit sharing and equity investments (including equity investments in the event of an initial public offering of equity by our partners). The activities under these collaboration agreements are performed with no guarantee of either technological or commercial success. Although we do not consider any individual alliance to be material, certain of the more notable alliances are described in Note 17 of Notes to Consolidated Financial Statements included in our 2016 Annual Report on Form 10-K. During 2017, we did not enter into any new collaboration arrangements or make any payments pursuant to any existing collaboration arrangements that were material individually or in the aggregate. Potential Future Milestone Payments: For the six-month period ended June 30, 2017, we entered into arrangements that include the potential for future milestone payments of $203 million related to the attainment of specified development and regulatory milestones over a period of several years. Our obligation to fund these efforts is contingent upon our continued involvement in the programs) and/or the lack of any adverse events which could cause the discontinuance of the programs. A financial summary of certain period activity and the period-end balances related to our collaboration arrangements is presented below 1,2 : Three-Month Periods Ended June 30, Research and Development Expense Upfront Fees Milestones Extension/Termination of Arrangements Amortization of Prepaid Research and Development Equity Investments Made During Period Agios 2017 $— $— $— $— $31 2016 200 — — — — Juno 3 2017 — — — — — 2016 50 — — — — Other Collaboration Arrangements 2017 75 — — 3 36 2016 34 10 — 4 — Six-Month Periods Ended June 30, Research and Development Expense Upfront Fees Milestones Extension/Termination of Arrangements Amortization of Prepaid Research and Development Equity Investments Made During Period Agios 2017 $8 $— $— $— $31 2016 200 25 — — — Juno 3 2017 — — — — 2 2016 50 — — — 41 Other Collaboration Arrangements 2017 77 — 7 7 46 2016 114 50 — 10 37 Balances as of: Intangible Asset Balance Equity Investment Balance Percentage of Outstanding Equity Agios June 30, 2017 $— $302 12% December 31, 2016 — 219 12% Juno June 30, 2017 — 309 10% December 31, 2016 — 194 10% Other Collaboration Arrangements June 30, 2017 13 552 N/A December 31, 2016 22 439 N/A 1 Activity and balances are presented specifically for notable new collaborations and for those collaborations which we have described in detail in our 2016 Annual Report on Form 10-K if there has been significant activity during the periods presented. Amounts related to collaborations that are not specifically presented are included in the aggregate as Other Collaboration Arrangements. 2 In addition to the expenses noted in the tables above, we may also incur expenses for collaboration agreement related activities that are managed or funded by us. 3 Our equity investment in Juno made in the first quarter of 2016 was transacted at a price per share that exceeded the market value of Juno's publicly traded common stock on the transaction closing date, resulting in an expense for the premium of $6 million that was recorded in the Consolidated Statement of Income as Other (expense) income, net in the first quarter of 2016.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Collaboration Arrangements and Acquired Research and Development Assets: We have entered into certain research and development collaboration arrangements with third parties that include our funding of certain development, manufacturing and commercialization efforts and the potential for making future milestone and royalty payments upon the achievement of pre-established developmental, regulatory and/or commercial targets. In addition, we have also made certain acquisitions that included potential future development, regulatory and commercial milestones. Our obligation to fund these efforts and make milestone payments is contingent upon our continued involvement in the programs and/or the lack of any adverse events which could cause the discontinuance of the programs. Due to the nature of these arrangements, the future potential payments are inherently uncertain, and accordingly no amounts have been recorded for the potential future achievement of these targets in our accompanying Consolidated Balance Sheets as of June 30, 2017 and December 31, 2016 . See Note 3 for additional details related to our acquisitions and Note 14 for additional details related to collaboration arrangements. Contingencies: We believe we maintain insurance coverage adequate for our current needs. Our operations are subject to environmental laws and regulations which, among other things, impose limitations on the discharge of pollutants into the air and water and establish standards for the treatment, storage and disposal of solid and hazardous wastes. We review the effects of such laws and regulations on our operations and modify our operations as appropriate. We believe we are in substantial compliance with all applicable environmental laws and regulations. We have ongoing customs, duties and value-added-tax examinations in various countries that have yet to be settled. Based on our knowledge of the claims and facts and circumstances to date, none of these matters, individually or in the aggregate, are deemed to be material to our financial condition.

Legal Proceedings

Legal Proceedings	6 Months Ended
	Jun. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Legal Proceedings	Legal Proceedings Like many companies in our industry, we have from time to time received inquiries and subpoenas and other types of information requests from government authorities and others and we have been subject to claims and other actions related to our business activities. While the ultimate outcome of investigations, inquiries, information requests and legal proceedings is difficult to predict, adverse resolutions or settlements of those matters may result in, among other things, modification of our business practices, product recalls, costs and significant payments, which may have a material adverse effect on our results of operations, cash flows or financial condition. Pending patent proceedings include challenges to the scope, validity and/or enforceability of our patents relating to certain of our products, uses of products or processes. Further, as certain of our products mature or they near the end of their regulatory exclusivity periods, it is more likely that we will receive challenges to our patents, and in some jurisdictions we have received such challenges. We are also subject, from time to time, to claims of third parties that we infringe their patents covering products or processes. Although we believe we have substantial defenses to these challenges and claims, there can be no assurance as to the outcome of these matters and an adverse decision in these proceedings could result in one or more of the following: (i) a loss of patent protection, which could lead to a significant reduction of sales that could materially affect our future results of operations, cash flows or financial condition (ii) our inability to continue to engage in certain activities, and (iii) significant liabilities, including payment of damages, royalties and/or license fees to any such third party. Among the principal matters pending are the following: Patent-Related Proceedings: REVLIMID ® : In 2012, our European patent EP 1 667 682 (the ’682 patent) relating to certain polymorphic forms of lenalidomide expiring in 2024 was opposed in a proceeding before the European Patent Office (EPO) by Generics (UK) Ltd. and Teva Pharmaceutical Industries Ltd. On July 21, 2015, the EPO determined that the ’682 patent was not valid. Celgene appealed the EPO ruling to the EPO Board of Appeal, thereby staying any revocation of the patent until the appeal is finally adjudicated. No appeal hearing date has been set. We do not anticipate a decision from the EPO Board of Appeal for several years and intend to vigorously defend our intellectual property rights. In 2010, Celgene’s European patent EP 1 505 973 (the ’973 patent) relating to certain uses of lenalidomide expiring in 2023 was opposed in a proceeding before the EPO by Synthon B.V. and an anonymous party. On February 25, 2013, the EPO determined that the ’973 patent was not valid. Celgene appealed the EPO ruling to the EPO Board of Appeal, thereby staying any revocation of the patent until the appeal is finally adjudicated. No appeal hearing date has been set. We do not anticipate a decision from the EPO Board of Appeal for several years and intend to vigorously defend our intellectual property rights. We believe that our patent portfolio for lenalidomide in Europe, including the composition of matter patent which expires in 2022, is strong and defensible. Although we believe that we will prevail in the EPO proceedings, in the event these patents are found not to be valid, we still expect that we will have protection in the EU for lenalidomide under other patents through at least 2022. We received a Notice Letter dated September 9, 2016 from Dr. Reddy’s Laboratories (DRL) notifying us of DRL’s Abbreviated New Drug Application (ANDA) which contains Paragraph IV certifications against U.S. Patent Nos. 7,456,800; 7,855,217; 7,968,569; 8,530,498; 8,648,095; 9,101,621; and 9,101,622 that are listed in the U.S. Food and Drug Administration's (FDA) list of Approved Drug Products with Therapeutic Equivalence Evaluations, commonly referred to as the Orange Book (Orange Book) for REVLIMID ® . DRL is seeking to manufacture and market a generic version of 2.5mg, 5mg, 10mg, 15mg, 20mg, and 25mg REVLIMID ® (lenalidomide) capsules in the United States. In response to the Notice Letter, we timely filed an infringement action against DRL in the United States District Court for the District of New Jersey on October 20, 2016. As a result of the filing of our action, the FDA cannot grant final approval of DRL's ANDA until the earlier of (i) a final decision that each of the patents is invalid, unenforceable, and/or not infringed; or (ii) March 9, 2019. On November 18, 2016, DRL filed an answer and counterclaims asserting that the patents-in-suit are invalid and/or not infringed. On December 27, 2016, we filed a reply to DRL’s counterclaims. Fact discovery is set to close on May 31, 2018. The Court has not yet entered a schedule for expert discovery or trial. We subsequently received an additional Notice Letter from DRL dated June 8, 2017 notifying us of additional Paragraph IV certifications against U.S. Patent Nos. 7,189,740; 8,404,717; and 9,056,120 that are listed in the Orange Book for REVLIMID ® . In response to the Notice Letter, we timely filed an infringement action against DRL in the United States District Court for the District of New Jersey on July 20, 2017. As a result of the filing of our action, the FDA cannot grant final approval of DRL's ANDA until the earlier of (i) a final decision that each of the patents is invalid, unenforceable, and/or not infringed; or (ii) December 8, 2019. We received a Notice Letter dated February 27, 2017 from Zydus Pharmaceuticals (USA) Inc. (Zydus) notifying us of Zydus’ ANDA which contains Paragraph IV certifications against U.S. Patent Nos. 7,456,800; 7,855,217; 7,968,569; 8,530,498; 8,648,095; 9,101,621; and 9,101,622 that are listed in the Orange Book for REVLIMID ® . Zydus is seeking to manufacture and market a generic version of 2.5 mg, 5 mg, 10 mg, 15 mg, 20 mg, and 25mg REVLIMID ® (lenalidomide) capsules in the United States. In response to the Notice Letter, we timely filed an infringement action against Zydus in the United States District Court for the District of New Jersey on April 12, 2017. As a result of the filing of our action, the FDA cannot grant final approval of Zydus’ ANDA at least until the earlier of (i) a final decision that each of the patents is invalid, unenforceable, and/or not infringed; or (ii) August 27, 2019. Zydus has not yet filed a response and the Court has not yet entered a scheduling order. We received a Notice Letter dated July 5, 2017 from Cipla LTD, India (Cipla) notifying us of Cipla’s ANDA which contains Paragraph IV certifications against U.S. Patent Nos. 7,456,800; 7,855,217; 7,968,569; 8,530,498; 8,648,095; 9,101,621; and 9,101,622 that are listed in the Orange Book for REVLIMID ® . Cipla is seeking to manufacture and market a generic version of 5 mg, 10 mg, 15 mg, 20 mg, and 25mg REVLIMID ® (lenalidomide) capsules in the United States. We are in the process of assessing this Notice Letter, and we intend to vigorously defend our intellectual property rights. We received a Notice Letter dated July 24, 2017 from Lotus Pharmaceutical Co., Inc. (Lotus) notifying us of Lotus’s ANDA which contains Paragraph IV certifications against U.S. Patent Nos. 5,635,517; 6,315,720; 6,561,977; 6,755,784; 7,189,740; 7,456,800; 7,855,217; 7,968,569; 8,315,886; 8,404,717; 8,530,498; 8,626,531; 8,648,095; 9,056,120; 9,101,621; and 9,101,622 that are listed in the Orange Book for REVLIMID ® . Lotus is seeking to manufacture and market a generic version of 2.5 mg, 5 mg, 10 mg, 15 mg, 20 mg, and 25mg REVLIMID ® (lenalidomide) capsules in the United States. We are in the process of assessing this Notice Letter, and we intend to vigorously defend our intellectual property rights. POMALYST ® : In 2015, our European patent EP 2 105 135 (the ’135 patent) relating to certain pharmaceutical compositions for treating cancer expiring in 2023 was opposed in a proceeding before the EPO by Generics (UK) Ltd., Accord Healthcare Ltd., Hexal AG, IPS Intellectual Property Services, Synthon B.V., and Actavis Group PTC EHF. On December 19, 2016 the EPO determined that the ’135 patent was not valid. Regulatory exclusivity for POMALYST ® will expire in Europe in 2023. We received a Notice Letter dated March 30, 2017 from Teva Pharmaceuticals USA, Inc. (Teva) notifying us of Teva’s ANDA submitted to the FDA that contains Paragraph IV certifications against U.S. Patent Nos. 6,316,471; 8,198,262; 8,673,939; 8,735,428; and 8,828,427 that are listed in the Orange Book. Teva is seeking to manufacture and market a generic version of 1 mg, 2 mg, 3 mg, and 4 mg POMALYST® (pomalidomide) capsules in the United States. We later received similar Notice Letters (the Pomalidomide Notice Letters) from six other generic drug manufacturers - Par Pharmaceutical, Inc. (Par); Apotex, Inc. (Apotex); Hetero USA, Inc. (Hetero); Aurobindo Pharma Ltd. (Aurobindo); Mylan Pharmaceuticals Inc. (Mylan); and Breckenridge Pharmaceutical, Inc. (“Breckenridge”) - relating to these and other POMALYST® patents listed in the Orange Book. In response to the Pomalidomide Notice Letters, we timely filed an infringement actions in the United States District Court for the District of New Jersey against Teva and Par on May 4, 2017 and against Apotex, Hetero, Aurobindo, Mylan, and Breckenridge on May 11, 2017. As a result of the filing of our actions, the FDA cannot grant final approval of these ANDAs at least until the earlier of (i) a final decision that each of the patents is invalid, unenforceable, and/or not infringed; or (ii) August 8, 2020. On July 13, 2017, Apotex and Hetero each filed answers and counterclaims asserting that the patents-in-suit are invalid and/or not infringed. The remaining generic drug manufacturers have not yet filed responses and the Court has not yet entered scheduling orders. OTEZLA ® (Apremilast): In February 2015, Polypharma S.A., Teva Pharmaceuticals, Ltd., Zentiva k.s. and LEK Pharmaceutical d.d. opposed Celgene’s European patent EP 2 276 483 (the ‘483 patent), which is directed to certain crystalline forms of apremilast. An oral hearing was held on March 21, 2017 at the EPO, whereby the Opposition Division determined that the '483 patent was not valid. Celgene plans to appeal the EPO ruling to the EPO Board of Appeal, which will have the effect of staying any revocation of the patent until the appeal is finally adjudicated. Upon the filing of an appeal, we would not anticipate a decision from the EPO Board of Appeal for several years. This patent will expire on March 27, 2028 and has been granted an SPC which extends the patent term to January 16, 2030. The regulatory exclusivity will expire on January 15, 2025. THALOMID ® (thalidomide): We received a Notice Letter dated December 18, 2014 from Lannett Holdings, Inc. (Lannett) notifying us of Lannett’s ANDA which contains Paragraph IV certifications against U.S. Patent Nos. 5,629,327; 6,045,501; 6,315,720; 6,561,976; 6,561,977; 6,755,784; 6,869,399; 6,908,432; 7,141,018; 7,230,012; 7,435,745; 7,874,984; 7,959,566; 8,204,763; 8,315,886; 8,589,188; and 8,626,531 that are listed in the Orange Book for THALOMID ® (thalidomide). Lannett is seeking to market a generic version of 50mg, 100mg, 150mg, and 200mg of THALOMID ® capsules. On January 30, 2015, we filed an infringement action against Lannett in the United States District Court for the District of New Jersey. As a result of the filing of our action, the FDA cannot grant final approval of Lannett’s ANDA until the earlier of (i) a final decision that each of the patents is invalid, unenforceable, and/or not infringed; or (ii) June 22, 2017. On December 8, 2015, Lannett filed an answer and counterclaims asserting that the patents-in-suit are invalid, unenforceable, and/or not infringed and on January 19, 2016 we filed a reply to Lannett's counterclaims. On April 18, 2016, Lannett amended its answer to narrow the scope of its unenforceability counterclaims and we filed an amended reply on May 5, 2016. The Court has not set dates for close of discovery, or trial. ABRAXANE ® (paclitaxel protein-bound particles for injectable suspension) (albumin bound): We received a Notice Letter dated February 23, 2016 from Actavis LLC (Actavis) notifying us of Actavis’s ANDA which contains Paragraph IV certifications against U.S. Patent Nos. 7,820,788; 7,923,536; 8,138,229; and 8,853,260 that are listed in the Orange Book for ABRAXANE ® . We then received a Notice Letter dated October 25, 2016 from Cipla notifying us of Cipla’s ANDA, which contains Paragraph IV certifications against the same four patents for ABRAXANE ® . Actavis and Cipla are seeking to manufacture and market a generic version of ABRAXANE ® (paclitaxel protein-bound particles for injectable suspension) (albumin bound) 100 mg/vial. On April 6, 2016, we filed an infringement action against Actavis in the United States District Court for the District of New Jersey. As a result of the filing of our action, the FDA cannot grant final approval of Actavis’s ANDA until the earlier of (i) a final decision that each of the patents is invalid, unenforceable, and/or not infringed; or (ii) August 24, 2018. On May 3, 2016, Actavis filed an answer and counterclaims asserting that the patents-in-suit are invalid and/or not infringed and we filed a reply to Actavis’s counterclaims on June 10, 2016. Fact discovery is currently ongoing and expert discovery is currently set to close on November 17, 2017. The Court has not yet set a date for a trial. On December 8, 2016, we filed an infringement action against Cipla in the United States District Court for the District of New Jersey. As a result of the filing of our action, the FDA cannot grant final approval of Cipla’s ANDA until the earlier of (i) a final decision that each of the patents is invalid, unenforceable, and/or not infringed; or (ii) April 25, 2019. On January 20, 2017, Cipla filed an answer and counterclaims asserting that the patents-in-suit are invalid and/or not infringed. Our reply was filed on February 24, 2017. Fact discovery is currently set to close on April 26, 2018 and expert discovery is currently set to close on November 1, 2018. The Court has not yet set a date for trial. On January 13, 2017, the UK High Court of Justice handed down a ruling after a hearing held on December 20, 2016 in which Celgene argued that the UK Intellectual Property Office improperly rejected our request for an SPC to the ABRAXANE ® patent UK No. 0 961 612 (the ‘612 patent). In that ruling, the High Court referred the matter to the Court of Justice for the EU (“CJEU”). No hearing date has been set at the CJEU. If the CJEU were to find in Celgene’s favor, the SPC would not only be granted in the UK, but in other jurisdictions that have previously rejected our initial request including Germany, Sweden and Ireland. The ‘612 patent will expire in Europe in September, 2017. However, if the SPC is granted, the patent will expire in 2022. Data exclusivity in Europe will expire in January 2019. Proceedings involving the United States Patent and Trademark Office (USPTO): Under the America Invents Act (AIA), any person may seek to challenge an issued patent by petitioning the USPTO to institute a post grant review. On April 23, 2015, we were informed that the Coalition for Affordable Drugs VI LLC filed petitions for Inter Partes Review (IPRs) challenging the validity of Celgene’s patents U.S. 6,045,501 (the ‘501 patent) and U.S. 6,315,720 (the ‘720 patent) covering certain aspects of our REMS program. On October 27, 2015, the USPTO Patent Trial and Appeal Board (PTAB) instituted IPR proceedings relating to these patents. An oral hearing was held on July 21, 2016; the decisions, rendered on October 26, 2016, held that the ’501 and ’720 patents are invalid, primarily due to obviousness in view of certain publications. On November 25, 2016, we requested a rehearing with respect to these patents. An appeal of the final written decisions of the PTAB can be made to the United States Court of Appeals for the Federal Circuit within 63 days of PTAB’s final action on our November 25, 2016 rehearing request. The ’501 and ’720 patents remain valid and enforceable pending rehearing and appeal. We retain other patents covering certain aspects of our REMS program, as well as other patents that cover our products that use our REMS system. We are evaluating the decisions, and we intend to continue to vigorously defend our intellectual property rights. On April 4, 2017, Actavis LLC filed petitions for IPRs challenging the validity of our patents U.S. 8,138,229 (the '229 patent); 7,923,536 (the '536 patent); 7,820,788 (the '788 patent); and 8,853,260 (the '260 patent) covering certain aspects of our ABRAXANE® product. We filed our preliminary response on July 12, 2017. Other Proceedings: In 2009, we received a Civil Investigative Demand (CID) from the U.S. Federal Trade Commission (FTC) seeking documents and other information relating to requests by manufacturers of generic drugs to purchase our patented REVLIMID ® and THALOMID ® brand drugs in order for the FTC to evaluate whether there may be reason to believe that we have engaged in unfair methods of competition. In 2010, the State of Connecticut issued a subpoena referring to the same issues raised by the 2009 CID. Also in 2010, we received a second CID from the FTC relating to this matter. We continue to cooperate with the FTC and State of Connecticut investigations. On April 3, 2014, Mylan filed a lawsuit against us in the United States District Court for the District of New Jersey alleging that we violated various federal and state antitrust and unfair competition laws by allegedly refusing to sell samples of our THALOMID ® and REVLIMID ® brand drugs so that Mylan can conduct the bioequivalence testing necessary for ANDAs to be submitted to the FDA for approval to market generic versions of these products. Mylan is seeking injunctive relief, damages and declaratory judgment. We filed a motion to dismiss Mylan’s complaint on May 25, 2014. Mylan filed its opposition to our motion to dismiss on June 16, 2014. The Federal Trade Commission filed an amicus curiae brief in opposition to our motion to dismiss on June 17, 2014. On December 22, 2014, the court granted Celgene’s motion to dismiss (i) Mylan’s claims based on Section 1 of the Sherman Act (without prejudice), and (ii) Mylan's related claims arising under the New Jersey Antitrust Act. The court denied our motion to dismiss the remaining claims which primarily relate to Section 2 of the Sherman Act. On January 6, 2015, we filed a motion to certify for interlocutory appeal the order denying our motion to dismiss with respect to the claims relating to Section 2 of the Sherman Act, which appeal was denied by the United State Court of Appeals for the Third Circuit on March 5, 2015. On January 20, 2015, we filed an answer to Mylan’s complaint. Fact discovery closed in June 2016 and expert discovery closed in November 2016. On December 16, 2016, we moved for summary judgment, seeking a ruling that judgment be granted in our favor on all claims. The motion for summary judgment has been fully briefed by the parties. No trial date has been set. We intend to vigorously defend against Mylan’s claims. In 2011, the United States Attorney’s Office for the Central District of California informed us that they were investigating possible off-label marketing and improper payments to physicians in connection with the sales of THALOMID ® and REVLIMID ® . In 2012, we learned that two other United States Attorneys’ offices (the Northern District of Alabama and the Eastern District of Texas) and various state Attorneys General were conducting related investigations. In February 2014, three civil qui tam actions related to those investigations brought by three former Celgene employees on behalf of the federal and various state governments under the federal false claims act and similar state laws were unsealed after the United States Department of Justice (DOJ) declined to intervene in any of these actions. However, the DOJ retained the right to intervene in these actions at any time. Additionally, while several states similarly declined to intervene in some of these actions, they also retained the right to intervene in the future. The plaintiffs in the Northern District of Alabama and Eastern District of Texas actions have voluntarily dismissed their cases. On April 25, 2014, we filed a motion to dismiss the complaint in the remaining (Central District of California) action, United States of America ex. rel. Beverly Brown v. Celgene Corp. , unsealed February 5, 2014 (the Brown Action), which was denied except with respect to certain state claims. We filed our answer to the complaint on August 28, 2014. Fact discovery closed on September 25, 2015. Expert discovery closed on June 30, 2016. The Relator (the person who brought the lawsuit on behalf of the government) submitted an expert report that, based on certain theories, purported to calculate damages and penalties. On July 25, 2016, we filed a motion to strike the Relator’s expert report. The Magistrate Judge granted our motion, striking substantial portions of the report on August 23, 2016, significantly reducing the expert’s calculation of damages and penalties. Relator appealed this decision to the District Court Judge. On August 29, 2016, the parties filed a Joint Stipulation on Defendant Celgene's Motion for Summary Judgment or, In the Alternative, Partial Summary Judgment. On December 28, 2016, the court entered an order granting in part and denying in part Celgene’s motion for summary judgment. Specifically, the court dismissed Relator’s anti-kickback claims and all claims related to prescriptions submitted to TRICARE, the Veterans Administration and the Tennessee, Texas and Wisconsin Medicaid programs. The court denied Celgene’s motion as to all other issues and upheld the District Court’s decision to strike substantial portions of Relator’s expert report. On January 30, 2017, we filed a Motion for Reconsideration of The Order Partially Denying Summary Judgment Or For Certification For Immediate Appeal And Stay. This motion sought to dispose of the remainder of the Relator’s claims. Relator filed her Opposition to our motion on February 6, 2017. A confidential mediation under Federal Rule of Civil Procedure Rule 408 was held on February 25, 2017. Relator and Celgene participated in the mediation and discussions continued after that date. On March 6, 2017, the Judge ordered that the trial begin on April 25, 2017. Relator and Celgene jointly sought, and obtained, a 90-day continuance of the trial date until July 25, 2017. On June 26, 2017, the court held a status conference, in which it directed the parties to submit any proposed settlement agreement to which Relator, Celgene, and the DOJ had agreed to the court by July 13, 2017 with a motion to approve the settlement. The court stated that it would rule on any motion to approve the settlement on July 25, 2017. As a result, we accrued $315 million related to this matter as a probable and reasonably estimable loss contingency during the three-month period ended June 30, 2017. On July 13, 2017, the parties submitted a proposed settlement and motion to approve the settlement to the court. On July 25, 2017, the court ruled that it would accept the settlement. Under the terms of the settlement, Celgene will pay a total of $315 million (including fees and expenses) to resolve the matter with the United States, 28 States, the District of Columbia, the City of Chicago and the Relator. The settlement includes no admission of any wrongdoing by Celgene, and Celgene is not required to enter into a Corporate Integrity Agreement as part of the settlement. On June 7, 2013, Children's Medical Center Corporation (CMCC) filed a lawsuit against us in the Superior Court of the Commonwealth of Massachusetts alleging that our obligation to pay a 1% royalty on REVLIMID ® net sales revenue and a 2.5% royalty on POMALYST ® /IMNOVID ® net sales under a license agreement entered into in December 2002 extended beyond February 28, 2013 and that our failure to make royalty payments to CMCC subsequent to February 28, 2013 breached the license agreement. On July 8, 2014, CR Rev Holdings, LLC (CR Rev) filed a complaint against Celgene in the same action. CR Rev alleged that CMCC sold and assigned to CR Rev a substantial portion of the royalty payments owed by Celgene on the sale of REVLIMID ® . CR Rev has alleged causes of action with respect to REVLIMID ® identical to those alleged by CMCC, and sought unspecified damages and a declaration that the license agreement is still in effect. On February 2, 2017, we entered into a Settlement Agreement with CMCC and CR Rev resolving the litigation, providing CMCC with a payment of approximately $199 million (see Notes 9 and 18 to Notes to Consolidated Financial Statements included in our 2016 Annual Report on Form 10-K) and providing us with an exclusive, worldwide, royalty free license to certain patent rights. The Settlement Agreement also provides for potential contingent royalty and other payments, which have not been accrued for as we do not believe such payments are probable. On November 7, 2014, the International Union of Bricklayers and Allied Craft Workers Local 1 Health Fund (IUB) filed a putative class action lawsuit against us in the United States District Court for the District of New Jersey alleging that we violated various antitrust, consumer protection, and unfair competition laws by (a) allegedly securing an exclusive supply contract with Seratec S.A.R.L. so that Barr Laboratories (Barr) allegedly could not secure its own supply of thalidomide active pharmaceutical ingredient; (b) allegedly refusing to sell samples of our THALOMID ® and REVLIMID ® brand drugs to various generic manufacturers for the alleged purpose of bioequivalence testing necessary for ANDAs to be submitted to the FDA for approval to market generic versions of these products; and (c) allegedly bringing unjustified patent infringement lawsuits against Barr and Natco Pharma Limited in order to allegedly delay those companies from obtaining approval for proposed generic versions of THALOMID ® and REVLIMID ® . IUB, on behalf of itself and a putative class of third party payers, is seeking injunctive relief and damages. On February 6, 2015, we filed a motion to dismiss IUB’s complaint. On March 3, 2015, the City of Providence (“Providence”) filed a similar putative class action making similar allegations. Both IUB and Providence, on behalf of themselves and a putative class of third party payers, are seeking injunctive relief and damages. Providence agreed that the decision in the motion to dismiss IUB’s complaint would apply to the identical claims in Providence’s complaint. A supplemental motion to dismiss Providence's state law claims was filed on April 20, 2015. On October 30, 2015, the court denied our motion to dismiss on all grounds. Celgene filed its Answer to the IUB and Providence complaints on January 11, 2016. On June 14, 2017, a new complaint was filed by the same counsel representing the plaintiffs in the IUB case, making similar allegations and adding three new plaintiffs - International Union of Operating Engineers Stationary Engineers Local 39 Health and Welfare Trust Fund, The Detectives’ Endowment Association, Inc. and David Mitchell. Counsel identified the new complaint as related to the IUB and Providence cases and intends to move to consolidate the complaints. The completion of fact discovery and expert discovery is scheduled for February 1, 2018 and July 15, 2018, respectively. No trial date has been set. We intend to vigorously defend against these claims. In December 2015, we received a subpoena from the U.S. Attorney’s Office for the District of Massachusetts, and in November 2016, we received a second subpoena related to the same inquiry. The materials requested primarily relate to patient assistance programs, including our support of 501(c)(3) organizations that provide financial assistance to eligible patients. We are cooperating with these requests.

Subsequent Event

Subsequent Event	6 Months Ended
	Jun. 30, 2017
Subsequent Events [Abstract]
Subsequent Event	Subsequent Events BeiGene, Ltd. (BeiGene): On July 5, 2017, we entered into a strategic collaboration to develop and commercialize BeiGene’s investigational anti-programmed cell death protein-1 (PD-1) inhibitor, BGB-A317, for patients with solid tumor cancers in the United States, Europe, Japan and the rest of the world outside of Asia. BeiGene will retain exclusive rights for the development and commercialization of BGB-A317 for hematological malignancies globally and for solid tumors in Asia (with the exception of Japan). BeiGene will acquire Celgene’s commercial operations in China and gain an exclusive license to commercialize Celgene’s approved therapies in China - ABRAXANE ® , REVLIMID ® and VIDAZA ® . In addition, BeiGene is granted licensing rights in China to CC-122, under the same terms and conditions as Celgene's approved commercial products. CC-122 is a next generation CelMOD currently in development by Celgene for lymphoma and hepatocellular carcinoma. Upon closing, BeiGene will receive upfront licensing fees totaling $263 million . In addition, Celgene will acquire an equity stake in BeiGene by purchasing 32.7 million , or 5.9 percent , of BeiGene’s ordinary shares at $4.58 per share, or $59.55 per BeiGene’s American Depositary Shares (ADS), representing a 35% premium to an 11 day volume-weighted average price of BeiGene’s ADS (beginning on June 16 and ending June 30, 2017). BeiGene is eligible to receive up to $980 million in development, regulatory and sales milestone payments as well as royalties on future sales of BGB-A317. The transactions have been approved by the boards of directors of Celgene and BeiGene. Both companies expect to complete the transaction during the third quarter of 2017, subject to the expiration or termination of applicable waiting periods under all applicable antitrust laws and satisfaction of other usual and customary closing conditions. FORMA Therapeutics Holdings LLC (FORMA): On March 21, 2014, we entered into a second collaboration arrangement with FORMA (March 2014 Collaboration), pursuant to which FORMA granted us an option to license the rights to select current and future FORMA drug candidates during a term of three and one half years. In addition, with respect to each licensed drug candidate, we have the obligation to pay designated amounts when certain development, regulatory and sales milestone events occur, with such amounts being variable and contingent on various factors. With respect to each licensed drug candidate, we will assume responsibility for all global development activities and costs after completion of Phase 1 clinical trials. FORMA will retain U.S. rights to all such licensed assets, including responsibility for manufacturing and commercialization. Under this collaboration arrangement, we also have an option to enter into up to two additional collaborations. During July 2017, we agreed to pay an upfront payment of $195 million for the first of the two additional collaborations. FORMA granted us an option to license the worldwide rights (except the U.S.) to select current and future drug candidates for the next two years and three months (or through October 1, 2019). In addition, with respect to each licensed drug candidate, we have the same rights and obligations as under the March 2014 Collaboration. If we exercise our option to enter into an additional collaboration pursuant to the March 2014 Collaboration, we will receive an exclusive option to acquire FORMA, including the U.S. rights to all licensed drug candidates, and worldwide rights to other wholly-owned assets within FORMA at that time.

New Accounting Standards (Polic

New Accounting Standards (Policies)	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
New Accounting Standards	New accounting standards which have been adopted In July 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2015-11, "Inventory (Topic 330): Simplifying the Measurement of Inventory" (ASU 2015-11). ASU 2015-11 applies only to inventory for which cost is determined by methods other than last in, first-out and the retail inventory method, which includes inventory that is measured using first-in, first-out or average cost. Inventory within the scope of this standard is required to be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. ASU 2015-11 was effective for us beginning in the first quarter of 2017. The adoption of this standard did not have a material impact on our consolidated financial statements and related disclosures. In March 2016, the FASB issued Accounting Standards Update No. 2016-07, "Investments-Equity Method and Joint Ventures" (ASU 2016-07). ASU 2016-07 eliminates the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively as if the equity method had been in effect during all previous periods that the investment had been held. Under the new guidance, available-for-sale equity securities that become qualified for the equity method of accounting will result in the recognition through earnings of the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. ASU 2016-07 was effective for us beginning in the first quarter of 2017. The adoption of this updated standard did not have a material impact on our consolidated financial statements and related disclosures. In March 2016, the FASB issued Accounting Standards Update No. 2016-09, "Compensation-Stock Compensation" (ASU 2016-09). The new standard was effective for us on January 1, 2017. Among other provisions, the new standard requires that excess tax benefits and tax deficiencies that arise upon vesting or exercise of share-based payments be recognized as income tax benefits and expenses in the income statement. Previously, such amounts were recorded to additional paid-in-capital. This aspect of the new guidance was required to be adopted prospectively, and accordingly, the income tax provisions for the three- and six-month periods ended June 30, 2017 includes $95 million and $170 million , respectively, of excess tax benefits arising from share-based compensation awards that vested or were exercised during the periods. In addition, at January 1, 2017, the Company recorded a cumulative-effect adjustment to retained earnings, with a corresponding increase to net deferred tax assets, in the amount of $18 million related to previously unrecognized excess tax benefits outstanding in the Consolidated Balance Sheet. In addition, the adoption of the new standard increased the diluted share count for the three- and six-month periods ended June 30, 2017 by approximately 7.0 million and 7.3 million shares, respectively. The new standard also amends the presentation of employee share-based payment-related items in the statement of cash flows by requiring that excess income tax benefits and tax deficiencies be classified in Cash flows from operating activities (such amounts were previously included in Cash flows from financing activities). The Company elected to adopt this aspect of the new guidance retrospectively, and accordingly, to conform to the current year presentation, $82 million of excess tax benefits were reclassified from Net Cash Used in Financing Activities to Net Cash Provided by Operating Activities and included within the change in Income taxes payable in the Consolidated Statement of Cash Flows for the six-month period ended June 30, 2016. As a result, Net Cash Used in Financing Activities increased by $82 million with a corresponding increase in Net Cash Provided by Operating Activities in the Consolidated Statement of Cash Flows for the six-month period ended June 30, 2016. New accounting standards which have not yet been adopted In May 2014, the FASB issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers” (ASU 2014-09) and has subsequently issued a number of amendments to ASU 2014-09. The new standard, as amended, provides a single comprehensive model to be used in the accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance, including industry-specific guidance. The standard’s stated core principle is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this core principle, ASU 2014-09 includes provisions within a five step model that includes identifying the contract with a customer, identifying the performance obligations in the contract, determining the transaction price, allocating the transaction price to the performance obligations, and recognizing revenue when, or as, an entity satisfies a performance obligation. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The new standard will be effective for us beginning January 1, 2018 and permits two methods of adoption: the full retrospective method, which requires the standard to be applied to each prior period presented, or the modified retrospective method, which requires the cumulative effect of adoption to be recognized as an adjustment to opening retained earnings in the period of adoption. We will adopt the standard using the modified retrospective method. We have completed an analysis of existing contracts with our customers and assessed the differences in accounting for such contracts under ASU 2014-09 compared with current revenue accounting standards. Based on our review of current customer contracts, we do not expect the implementation of ASU 2014-09 to have a material quantitative impact on our consolidated financial statements as the timing of revenue recognition for product sales is not expected to significantly change. In limited instances, we may recognize revenue earlier than under the current standard. Currently, we defer certain revenue where the price pursuant to the underlying customer arrangement is not fixed and determinable. Under the new standard, such customer arrangements will be accounted for as variable consideration, which may result in revenue being recognized earlier provided we can reliably estimate the ultimate price expected to be realized from the customer. We will continue to assess new customer contracts throughout 2017. The new standard will result in additional revenue-related disclosures in the footnotes to our consolidated financial statements. Adoption of this standard will require changes to our business processes, systems and controls to support the additional required disclosures. We are in the process of identifying and designing such changes to ensure our readiness. In January 2016, the FASB issued Accounting Standards Update No. 2016-01, "Financial Instruments–Overall: Recognition and Measurement of Financial Assets and Financial Liabilities" (ASU 2016-01). ASU 2016-01 changes accounting for equity investments, financial liabilities under the fair value option, and presentation and disclosure requirements for financial instruments. ASU 2016-01 does not apply to equity investments in consolidated subsidiaries or those accounted for under the equity method of accounting. In addition, the FASB clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. Equity investments with readily determinable fair values will be measured at fair value with changes in fair value recognized in net income. Companies have the option to either measure equity investments without readily determinable fair values at fair value or at cost adjusted for changes in observable prices minus impairment. Changes in measurement under either alternative will be recognized in net income. Companies that elect the fair value option for financial liabilities must recognize changes in fair value related to instrument-specific credit risk in other comprehensive income (OCI). Companies must assess valuation allowances for deferred tax assets related to available-for-sale debt securities in combination with their other deferred tax assets. ASU 2016-01 will be effective for us beginning in the first quarter of 2018 and early adoption is available to publicly traded companies to record fair value changes for financial liabilities under the fair value option resulting from instrument-specific credit risk in OCI. We expect the implementation of this standard to have an impact on our consolidated financial statements and related disclosures, as we held publicly traded equity investments as of June 30, 2017 with a fair value of approximately $1.2 billion in a net unrealized gain position of $482 million , and having an associated deferred tax liability of $171 million , as of June 30, 2017 . We will record a cumulative-effect adjustment to retained earnings for the amount of unrealized gains or losses, net of tax at the beginning of the fiscal year of adoption. The guidance related to equity investments without readily determinable fair values should be applied prospectively to equity investments that exist as of the date of adoption. The implementation of ASU 2016-01 is expected to increase volatility in our net income as the volatility currently recorded in OCI related to changes in the fair market value of available-for-sale equity investments will be reflected in net income after adoption. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, "Leases" (ASU 2016-02). ASU 2016-02 provides accounting guidance for both lessee and lessor accounting models. Among other things, lessees will recognize a right-of-use asset and a lease liability for leases with a duration of greater than one year. For income statement purposes, ASU 2016-02 will require leases to be classified as either an operating or finance lease. Operating leases will result in straight-line expense while finance leases will result in a front-loaded expense pattern. The new standard will be effective for us on January 1, 2019 and will be adopted using a modified retrospective approach which will require application of the new guidance at the beginning of the earliest comparative period presented. We are currently evaluating the effect that the updated standard will have on our consolidated financial statements and related disclosures. We expect the implementation of this standard to have an impact on our consolidated financial statements and related disclosures as we had aggregate future minimum lease payments of approximately $213 million as of December 31, 2016 under our portfolio of non-cancelable leased office and research facilities at that time which had various expirations dates between 2017 and 2025 as included in our 2016 Annual Report on Form 10-K. We anticipate recognition of additional assets and corresponding liabilities related to these leases on our consolidated balance sheet. In June 2016, the FASB issued Accounting Standards Update No. 2016-13, "Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments" (ASU 2016-13). ASU 2016-13 requires that expected credit losses relating to financial assets measured on an amortized cost basis and available-for-sale debt securities be recorded through an allowance for credit losses. ASU 2016-13 limits the amount of credit losses to be recognized for available-for-sale debt securities to the amount by which carrying value exceeds fair value and also requires the reversal of previously recognized credit losses if fair value increases. The new standard will be effective for us on January 1, 2020. Early adoption will be available on January 1, 2019. We are currently evaluating the effect that the updated standard will have on our consolidated financial statements and related disclosures. In August 2016, the FASB issued Accounting Standards Update No. 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments" (ASU 2016-15). ASU 2016-15 clarifies how companies present and classify certain cash receipts and cash payments in the statement of cash flows where diversity in practice exists. ASU 2016-15 is effective for us in our first quarter of fiscal 2018 and earlier adoption is permitted. We are currently evaluating the effect that the updated standard will have on our consolidated financial statements and related disclosures. In October 2016, the FASB issued Accounting Standards Update No. 2016-16, "Intra-Entity Transfers of Assets Other Than Inventory” (ASU 2016-16). ASU 2016-16 requires the income tax consequences of intra-entity transfers of assets other than inventory to be recognized as current period income tax expense or benefit and removes the requirement to defer and amortize the consolidated tax consequences of intra-entity transfers. The new standard will be effective for us on January 1, 2018 and will be adopted using a modified retrospective approach which requires a cumulative effect adjustment to retained earnings as of the beginning of the period of adoption. We are currently evaluating the effect that the updated standard will have on our consolidated financial statements and related disclosures. In January 2017, the FASB issued Accounting Standards Update No. 2017-01, “Business Combinations” (ASU 2017-01). ASU 2017-01 provides guidance for evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The guidance provides a screen to determine when an integrated set of assets and activities (a “set”) does not qualify to be a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in an identifiable asset or a group of similar identifiable assets, the set is not a business. If the screen is not met, the guidance requires a set to be considered a business to include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create outputs and removes the evaluation as to whether a market participant could replace the missing elements. The new standard will be effective for us on January 1, 2018 and will be adopted on a prospective basis. Early adoption is permitted. We anticipate that the adoption of this standard will result in more acquisitions being accounted for as asset acquisitions.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
Schedule of earnings per share	Three-Month Periods Ended June 30, Six-Month Periods Ended June 30, (Amounts in millions, except per share) 2017 2016 2017 2016 Net income $ 1,061 $ 598 $ 2,002 $ 1,399 Weighted-average shares: Basic 780.4 775.6 779.7 778.1 Effect of dilutive securities: Options, restricted stock units, performance-based restricted stock units and other 31.3 25.9 31.8 26.6 Diluted 811.7 801.5 811.5 804.7 Net income per share: Basic $ 1.36 $ 0.77 $ 2.57 $ 1.80 Diluted $ 1.31 $ 0.75 $ 2.47 $ 1.74
Gains from premium put options	During the three-month and six-month periods ended June 30, 2017 and 2016 , we recorded put option activity on our Consolidated Statements of Income in Other (expense) income, net as follows: Three-Month Periods Ended June 30, Six-Month Periods Ended June 30, 2017 2016 2017 2016 Gain from sale of put options $ — $ 3 $ — $ 8 The following table summarizes the effect of derivative instruments not designated as hedging instruments on the Consolidated Statements of Income for the three- and six-month periods ended June 30, 2017 and 2016 : Amount of (Loss) Gain Recognized in Income on Derivative Classification of (Loss) Gain Recognized in Income on Derivative Three-Month Periods Ended June 30, Six-Month Periods Ended June 30, Instrument 2017 2016 2017 2016 Foreign exchange contracts Other (expense) income, net $ (20 ) $ — $ (42 ) $ (28 ) Put options on our common stock Other (expense) income, net — 3 — 8

Accumulated Other Comprehensi26

Accumulated Other Comprehensive Income (Loss) (Tables)	6 Months Ended
	Jun. 30, 2017
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Summary of other comprehensive income (loss)	The accumulated balances related to each component of other comprehensive income (loss), net of tax, are summarized as follows: Pension Liability Adjustment Net Unrealized Gains (Losses) On Available-for-Sale Marketable Securities Net Unrealized Gains (Losses) Related to Cash Flow Hedges Foreign Currency Translation Adjustments Accumulated Other Comprehensive Income (Loss) Balance as of December 31, 2016 $ (38 ) $ 144 $ 415 $ (102 ) $ 419 Other comprehensive income (loss) before reclassifications, net of tax — 148 (227 ) 41 (38 ) Reclassified losses (gains) from accumulated other comprehensive income, net of tax — 21 (165 ) — (144 ) Net current-period other comprehensive income (loss), net of tax — 169 (392 ) 41 (182 ) Balance as of June 30, 2017 $ (38 ) $ 313 $ 23 $ (61 ) $ 237 Balance as of December 31, 2015 $ (14 ) $ 272 $ 586 $ (76 ) $ 768 Other comprehensive (loss) income before reclassifications, net of tax — (226 ) (172 ) 3 (395 ) Reclassified losses (gains) from accumulated other comprehensive income, net of tax — 26 (148 ) — (122 ) Net current-period other comprehensive (loss) income, net of tax — (200 ) (320 ) 3 (517 ) Balance as of June 30, 2016 $ (14 ) $ 72 $ 266 $ (73 ) $ 251
Schedule of gains (losses) reclassified out of accumulated other comprehensive income	Gains (Losses) Reclassified Out of Accumulated Other Comprehensive Income Accumulated Other Comprehensive Income Components Classification in the Consolidated Statements of Income Three-Month Periods Ended June 30, Six-Month Periods Ended June 30, 2017 2016 2017 2016 Gains (losses) from cash-flow hedges: Foreign exchange contracts Net product sales $ 81 $ 62 $ 167 $ 150 Treasury rate lock agreements Interest (expense) (2 ) (1 ) (3 ) (2 ) Interest rate swap agreements Interest (expense) — (1 ) (1 ) (1 ) Income tax provision 1 1 2 1 Gains (losses) from available-for-sale marketable securities: Realized (loss) on sales of marketable securities Interest and investment income, net (34 ) (30 ) (34 ) (40 ) Income tax provision 13 11 13 14 Total reclassification, net of tax $ 59 $ 42 $ 144 $ 122

Financial Instruments and Fai27

Financial Instruments and Fair Value Measurement (Tables)	6 Months Ended
	Jun. 30, 2017
Fair Value Disclosures [Abstract]
Schedule of Significant Unobservable Inputs Calculation	The fair value of our contingent consideration as of June 30, 2017 and December 31, 2016 was calculated using the following significant unobservable inputs: Inputs Ranges (weighted average) utilized as of: June 30, 2017 December 31, 2016 Discount rate 1.5% to 12.0% (8.8%) 1.5% to 12.0% (8.6%) Probability of payment 0% to 95% (42.7%) 0% to 95% (42.0%) Projected year of payment for development and regulatory milestones 2017 to 2029 (2020) 2017 to 2029 (2019) Projected year of payment for sales-based milestones and other amounts calculated as a percentage of annual sales 2020 to 2032 (2025) 2019 to 2033 (2024)
Assets and liabilities measured at fair value on recurring basis	Balance as of June 30, 2017 Quoted Price in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Available-for-sale securities $ 3,480 $ 1,214 $ 2,266 $ — Forward currency contracts 51 — 51 — Purchased currency options 88 — 88 — Interest rate swaps 18 — 18 — Total assets $ 3,637 $ 1,214 $ 2,423 $ — Liabilities: Contingent value rights $ (54 ) $ (54 ) $ — $ — Written currency options (114 ) — (114 ) — Other acquisition related contingent consideration (1,488 ) — — (1,488 ) Total liabilities $ (1,656 ) $ (54 ) $ (114 ) $ (1,488 ) Balance as of December 31, 2016 Quoted Price in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Available-for-sale securities $ 1,800 $ 891 $ 909 $ — Forward currency contracts 379 — 379 — Purchased currency options 140 — 140 — Interest rate swaps 31 — 31 — Total assets $ 2,350 $ 891 $ 1,459 $ — Liabilities: Contingent value rights $ (44 ) $ (44 ) $ — $ — Written currency options (54 ) — (54 ) — Other acquisition related contingent consideration (1,490 ) — — (1,490 ) Total liabilities $ (1,588 ) $ (44 ) $ (54 ) $ (1,490 )
Roll-forward of fair value of Level 3 instruments (significant unobservable inputs), liabilities	There were no security transfers between levels 1, 2 and 3 during the three-month periods ended June 30, 2017 and 2016 . The following tables represent a roll-forward of the fair value of level 3 instruments: Three-Month Period Ended June 30, 2017 Liabilities: Gloucester Nogra Avila Quanticel Total Balance as of March 31, 2017 $ (22 ) $ (1,377 ) $ (8 ) $ (120 ) $ (1,527 ) Amounts acquired or issued, including measurement period adjustments — — — — — Net change in fair value — 5 5 10 20 Settlements, including transfers to Accrued expenses and other current liabilities — — — 19 19 Balance as of June 30, 2017 $ (22 ) $ (1,372 ) $ (3 ) $ (91 ) $ (1,488 ) Three-Month Period Ended June 30, 2016 Liabilities: Gloucester Nogra Avila Quanticel Total Balance as of March 31, 2016 $ (19 ) $ (1,267 ) $ (96 ) $ (168 ) $ (1,550 ) Amounts acquired or issued, including measurement period adjustments — — — — — Net change in fair value (1 ) (28 ) 81 (2 ) 50 Settlements, including transfers to Accrued expenses and other current liabilities — — — 30 30 Balance as of June 30, 2016 $ (20 ) $ (1,295 ) $ (15 ) $ (140 ) $ (1,470 ) There were no security transfers between levels 1, 2 and 3 during the six-month periods ended June 30, 2017 and 2016 . The following tables represent a roll-forward of the fair value of level 3 instruments: Six-Month Period Ended June 30, 2017 Liabilities: Gloucester Nogra Avila Quanticel Total Balance as of December 31, 2016 $ (21 ) $ (1,346 ) $ (8 ) $ (115 ) $ (1,490 ) Amounts acquired or issued, including measurement period adjustments — — — — — Net change in fair value (1 ) (26 ) 5 5 (17 ) Settlements, including transfers to Accrued expenses and other current liabilities — — — 19 19 Balance as of June 30, 2017 $ (22 ) $ (1,372 ) $ (3 ) $ (91 ) $ (1,488 ) Six-Month Period Ended June 30, 2016 Liabilities: Gloucester Nogra Avila Quanticel Total Balance as of December 31, 2015 $ (19 ) $ (1,239 ) $ (97 ) $ (167 ) $ (1,522 ) Amounts acquired or issued, including measurement period adjustments — — — — — Net change in fair value (1 ) (56 ) 82 (3 ) 22 Settlements, including transfers to Accrued expenses and other current liabilities — — — 30 30 Balance as of June 30, 2016 $ (20 ) $ (1,295 ) $ (15 ) $ (140 ) $ (1,470 )

Derivative Instruments and He28

Derivative Instruments and Hedging Activities (Tables)	6 Months Ended
	Jun. 30, 2017
Derivative [Line Items]
Schedule of notional amount of derivative contracts	As of June 30, 2017 and December 31, 2016 , we had outstanding forward starting swaps with effective dates in 2017 and 2018 and maturing in ten years that were designated as cash flow hedges with notional amounts as shown in the table below: Notional Amount June 30, 2017 December 31, 2016 Forward starting interest rate swap contracts: Forward starting swaps with effective dates in 2017 $ 500 $ 500 Forward starting swaps with effective dates in 2018 500 500
Schedule of fair value and balance sheet location of derivative instruments	The following tables summarize the fair value and presentation in the Consolidated Balance Sheets for derivative instruments as of June 30, 2017 and December 31, 2016 : June 30, 2017 Consolidated Balance Sheet Classification Fair Value Instrument Asset Derivatives Liability Derivatives Derivatives designated as hedging instruments: Foreign exchange contracts 1 Other current assets $ 81 $ 23 Accrued expenses and other current liabilities 8 13 Other non-current assets 33 26 Other non-current liabilities 53 100 Interest rate swap agreements Other current assets 3 — Other non-current assets 27 9 Other non-current liabilities — 4 Derivatives not designated as hedging instruments: Foreign exchange contracts 1 Other current assets 24 7 Accrued expenses and other current liabilities — 5 Interest rate swap agreements Other current assets 2 2 Other non-current assets 2 1 Total $ 233 $ 190 1 Derivative instruments in this category are subject to master netting arrangements and are presented on a net basis in the Consolidated Balance Sheet in accordance with ASC 210-20. December 31, 2016 Consolidated Balance Sheet Classification Fair Value Instrument Asset Derivatives Liability Derivatives Derivatives designated as hedging instruments: Foreign exchange contracts 1 Other current assets $ 317 $ 10 Other non-current assets 178 71 Interest rate swap agreements Other current assets 1 — Other non-current assets 38 7 Other non-current liabilities — 2 Derivatives not designated as hedging instruments: Foreign exchange contracts 1 Other current assets 57 4 Accrued expenses and other current liabilities — 2 Interest rate swap agreements Other current assets 2 2 Other non-current assets 3 2 Total $ 596 $ 100 1 Derivative instruments in this category are subject to master netting arrangements and are presented on a net basis in the Consolidated Balance Sheet in accordance with ASC 210-20.
Schedule of effect of derivative instruments designated as hedging instruments on Consolidated Statements of Income	During the three-month and six-month periods ended June 30, 2017 and 2016 , we recorded put option activity on our Consolidated Statements of Income in Other (expense) income, net as follows: Three-Month Periods Ended June 30, Six-Month Periods Ended June 30, 2017 2016 2017 2016 Gain from sale of put options $ — $ 3 $ — $ 8 The following table summarizes the effect of derivative instruments not designated as hedging instruments on the Consolidated Statements of Income for the three- and six-month periods ended June 30, 2017 and 2016 : Amount of (Loss) Gain Recognized in Income on Derivative Classification of (Loss) Gain Recognized in Income on Derivative Three-Month Periods Ended June 30, Six-Month Periods Ended June 30, Instrument 2017 2016 2017 2016 Foreign exchange contracts Other (expense) income, net $ (20 ) $ — $ (42 ) $ (28 ) Put options on our common stock Other (expense) income, net — 3 — 8
Cash flow hedges
Derivative [Line Items]
Schedule of effect of derivative instruments designated as hedging instruments on Consolidated Statements of Income	The following tables summarize the effect of derivative instruments designated as cash flow hedging instruments on the Consolidated Statements of Income for the three-month periods ended June 30, 2017 and 2016 : Three-Month Period Ended June 30, 2017 (Effective Portion) (Ineffective Portion and Amount Excluded From Effectiveness Testing) Instrument Amount of 1 Classification of Amount of Classification of Amount of Foreign exchange contracts $ (136 ) Net product sales $ 81 Other (expense) income, net $ (43 ) 2 Treasury rate lock agreements — Interest (expense) (2 ) Other (expense) income, net — Interest rate swap agreements (17 ) Interest (expense) — Other (expense) income, net — 1 Net gains of $29 million are expected to be reclassified from Accumulated OCI into income in the next 12 months. 2 The amount of net losses recognized in income represents $43 million of losses related to amounts excluded from the assessment of hedge effectiveness (fair value adjustments of forward point amounts). Three-Month Period Ended June 30, 2016 (Effective Portion) (Ineffective Portion and Amount Excluded From Effectiveness Testing) Instrument Amount of Classification of Amount of Classification of Amount of Foreign exchange contracts $ 53 Net product sales $ 62 Other (expense) income, net $ 9 1 Treasury rate lock agreements — Interest (expense) (1 ) Other (expense) income, net — Interest rate swap agreements (22 ) Interest (expense) (1 ) Other (expense) income, net — 1 The amount of net gains recognized in income represents $8 million of gains related to amounts excluded from the assessment of hedge effectiveness (fair value adjustments of forward point amounts) and $1 million of gains related to the ineffective portion of the hedging relationships. The following tables summarize the effect of derivative instruments designated as cash flow hedging instruments on the Consolidated Statements of Income for the six-month periods ended June 30, 2017 and 2016 : Six-Month Period Ended June 30, 2017 (Effective Portion) (Ineffective Portion and Amount Excluded From Effectiveness Testing) Instrument Amount of 1 Classification of Amount of Classification of Amount of Foreign exchange contracts $ (217 ) Net product sales $ 167 Other (expense) income, net $ (24 ) 2 Treasury rate lock agreements — Interest (expense) (3 ) Other (expense) income, net — Interest rate swap agreements (17 ) Interest (expense) (1 ) Other (expense) income, net — 1 Net gains of $29 million are expected to be reclassified from Accumulated OCI into income in the next 12 months. 2 The amount of net losses recognized in income represents $24 million of losses related to amounts excluded from the assessment of hedge effectiveness (fair value adjustments of forward point amounts). Six-Month Period Ended June 30, 2016 (Effective Portion) (Ineffective Portion and Amount Excluded From Effectiveness Testing) Instrument Amount of Classification of Amount of Classification of Amount of Foreign exchange contracts $ (142 ) Net product sales $ 150 Other (expense) income, net $ 23 1 Treasury rate lock agreements — Interest (expense) (2 ) Other (expense) income, net — Interest rate swap agreements (48 ) Interest (expense) (1 ) Other (expense) income, net — 1 The amount of net gains recognized in income represents $21 million of gains related to amounts excluded from the assessment of hedge effectiveness (fair value adjustments of forward point amounts) and $2 million of gains related to the ineffective portion of the hedging relationships.
Fair value hedges
Derivative [Line Items]
Schedule of effect of derivative instruments designated as hedging instruments on Consolidated Statements of Income	The following table summarizes the effect of derivative instruments designated as fair value hedging instruments on the Consolidated Statements of Income for the three- and six-month periods ended June 30, 2017 and 2016 : Amount of Gain Recognized in Income on Derivative Classification of Gain Recognized in Income on Derivative Three-Month Periods Ended June 30, Six-Month Periods Ended June 30, Instrument 2017 2016 2017 2016 Interest rate swap agreements Interest (expense) $ 10 $ 13 $ 19 $ 26
Foreign currency forward contracts
Derivative [Line Items]
Schedule of notional amount of derivative contracts	Foreign currency forward contracts entered into to hedge forecasted revenue and expenses were as follows as of June 30, 2017 and December 31, 2016 : Notional Amount Foreign Currency June 30, 2017 December 31, 2016 Australian Dollar $ 69 $ 49 British Pound 161 199 Canadian Dollar 270 193 Euro 1,367 1,812 Japanese Yen 601 597 Total $ 2,468 $ 2,850
Foreign exchange option contracts
Derivative [Line Items]
Schedule of foreign exchange contracts, statement of financial position	Outstanding foreign currency option contracts entered into to hedge forecasted revenue were as follows as of June 30, 2017 and December 31, 2016 : Notional Amount 1 June 30, 2017 December 31, 2016 Foreign currency option contracts designated as hedging activity: Purchased Put $ 3,181 $ 1,790 Written Call 3,580 2,009 1 U.S. Dollar notional amounts are calculated as the hedged local currency amount multiplied by the strike value of the foreign currency option. The local currency notional amounts of our purchased put and written call that are designated as hedging activities are equal to each other.
Interest rate swap agreements
Derivative [Line Items]
Schedule of notional amount of derivative contracts	The following table summarizes the notional amounts of our outstanding interest rate swap contracts as of June 30, 2017 and December 31, 2016: Notional Amount June 30, 2017 December 31, 2016 Interest rate swap contracts entered into as fair value hedges of the following fixed-rate senior notes: 3.875% senior notes due 2025 $ 200 $ 200

Cash, Cash Equivalents and Ma29

Cash, Cash Equivalents and Marketable Securities Available-for-Sale (Tables)	6 Months Ended
	Jun. 30, 2017
Cash, Cash Equivalents, and Short-term Investments [Abstract]
Schedule of available-for-sale securities by major security type and class	The amortized cost, gross unrealized holding gains, gross unrealized holding losses and estimated fair value of available-for-sale securities by major security type and class of security as of June 30, 2017 and December 31, 2016 were as follows: June 30, 2017 Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Estimated Fair Value U.S. Treasury securities $ 100 $ — $ (1 ) $ 99 U.S. government-sponsored agency securities 23 — — 23 U.S. government-sponsored agency MBS 21 — (1 ) 20 Corporate debt - global 939 — — 939 Asset backed securities 9 — — 9 Ultra short income fund 350 — — 350 Time deposits 1 and Repurchase agreements 1 826 — — 826 Marketable equity securities 732 486 (4 ) 1,214 Total available-for-sale marketable securities $ 3,000 $ 486 $ (6 ) $ 3,480 December 31, 2016 Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Estimated Fair Value U.S. Treasury securities $ 121 $ — $ (1 ) $ 120 U.S. government-sponsored agency MBS 31 — — 31 Corporate debt - global 378 — (1 ) 377 Asset backed securities 17 — — 17 Time deposits 1 364 — — 364 Marketable equity securities 672 238 (19 ) 891 Total available-for-sale marketable securities $ 1,583 $ 238 $ (21 ) $ 1,800 1 Have original maturities of greater than three months.
Schedule of duration periods of available-for-sale debt securities	Duration periods of available-for-sale debt securities as of June 30, 2017 were as follows: Amortized Cost Fair Value Duration of one year or less $ 997 $ 997 Duration of one through three years 438 437 Duration of three through five years 7 6 Total $ 1,442 $ 1,440

Inventory (Tables)

Inventory (Tables)	6 Months Ended
	Jun. 30, 2017
Inventory Disclosure [Abstract]
Summary of inventories by major category	Inventories as of June 30, 2017 and December 31, 2016 are summarized by major category as follows: June 30, 2017 December 31, 2016 Raw materials $ 267 $ 274 Work in process 109 87 Finished goods 157 137 Total $ 533 $ 498

Intangible Assets and Goodwill

Intangible Assets and Goodwill (Tables)	6 Months Ended
	Jun. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of finite-live intangible assets	as of June 30, 2017 and December 31, 2016 are summarized as follows: June 30, 2017 Gross Carrying Value Accumulated Amortization Intangible Assets, Net Amortizable intangible assets: Acquired developed product rights $ 3,406 $ (1,816 ) $ 1,590 Technology 483 (373 ) 110 Licenses 66 (29 ) 37 Other 43 (33 ) 10 3,998 (2,251 ) 1,747 Non-amortizable intangible assets: Acquired IPR&D product rights 8,471 — 8,471 Total intangible assets $ 12,469 $ (2,251 ) $ 10,218 December 31, 2016 Gross Carrying Value Accumulated Amortization Intangible Assets, Net Amortizable intangible assets: Acquired developed product rights $ 3,406 $ (1,694 ) $ 1,712 Technology 483 (326 ) 157 Licenses 66 (26 ) 40 Other 43 (31 ) 12 3,998 (2,077 ) 1,921 Non-amortizable intangible assets: Acquired IPR&D product rights 8,471 — 8,471 Total intangible assets $ 12,469 $ (2,077 ) $ 10,392
Schedule of indefinite-live intangible assets	as of June 30, 2017 and December 31, 2016 are summarized as follows: June 30, 2017 Gross Carrying Value Accumulated Amortization Intangible Assets, Net Amortizable intangible assets: Acquired developed product rights $ 3,406 $ (1,816 ) $ 1,590 Technology 483 (373 ) 110 Licenses 66 (29 ) 37 Other 43 (33 ) 10 3,998 (2,251 ) 1,747 Non-amortizable intangible assets: Acquired IPR&D product rights 8,471 — 8,471 Total intangible assets $ 12,469 $ (2,251 ) $ 10,218 December 31, 2016 Gross Carrying Value Accumulated Amortization Intangible Assets, Net Amortizable intangible assets: Acquired developed product rights $ 3,406 $ (1,694 ) $ 1,712 Technology 483 (326 ) 157 Licenses 66 (26 ) 40 Other 43 (31 ) 12 3,998 (2,077 ) 1,921 Non-amortizable intangible assets: Acquired IPR&D product rights 8,471 — 8,471 Total intangible assets $ 12,469 $ (2,077 ) $ 10,392

Debt (Tables)

Debt (Tables)	6 Months Ended
	Jun. 30, 2017
Debt Disclosure [Abstract]
Schedule of Short-term Debt	The current portion of long-term debt outstanding as of June 30, 2017 and December 31, 2016 includes: June 30, 2017 December 31, 2016 1.900% senior notes due 2017 $ 500 $ 501
Carrying values of the senior notes	The carrying values of the long-term portion of these senior notes as of June 30, 2017 and December 31, 2016 includes: June 30, 2017 December 31, 2016 2.125% senior notes due 2018 $ 999 $ 998 2.300% senior notes due 2018 401 402 2.250% senior notes due 2019 507 509 2.875% senior notes due 2020 1,494 1,493 3.950% senior notes due 2020 516 518 3.250% senior notes due 2022 1,049 1,054 3.550% senior notes due 2022 994 994 4.000% senior notes due 2023 740 744 3.625% senior notes due 2024 1,001 1,001 3.875% senior notes due 2025 2,480 2,475 5.700% senior notes due 2040 247 247 5.250% senior notes due 2043 393 393 4.625% senior notes due 2044 987 987 5.000% senior notes due 2045 1,975 1,974 Total long-term debt $ 13,783 $ 13,789

Share-Based Compensation (Table

Share-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Components of share-based compensation expense	The following table summarizes the components of share-based compensation expense in the Consolidated Statements of Income for the three- and six-month periods ended June 30, 2017 and 2016 : Three-Month Periods Ended June 30, Six-Month Periods Ended June 30, 2017 2016 2017 2016 Cost of goods sold (excluding amortization of acquired intangible assets) $ 8 $ 9 $ 15 $ 18 Research and development 70 64 135 126 Selling, general and administrative 92 85 173 160 Total share-based compensation expense 170 158 323 304 Tax benefit related to share-based compensation expense 46 44 87 84 Reduction in income $ 124 $ 114 $ 236 $ 220
Summary of activity for stock options, RSUs and PSUs	The following table summarizes the activity for stock options, RSUs and PSUs for the six-month period ended June 30, 2017 (in millions unless otherwise noted): Stock Options RSUs PSUs (in thousands) Outstanding as of December 31, 2016 73.8 7.1 463 Changes during the Year: Granted 5.9 1.5 169 Exercised / Released (9.7 ) (0.3 ) (1 ) Forfeited (0.9 ) (0.3 ) (27 ) Outstanding as of June 30, 2017 69.1 8.0 604
Schedule of unvested awards compensation cost not yet recognized and weighted-average periods for recognition	Total compensation cost related to unvested awards not yet recognized and the weighted-average periods over which the awards are expected to be recognized as of June 30, 2017 were as follows (dollars in millions): Stock Options RSUs PSUs Unrecognized compensation cost $ 561 $ 405 $ 35 Expected weighted-average period in years of compensation cost to be recognized 2.1 1.5 1.6

Collaboration Agreements (Table

Collaboration Agreements (Tables)	6 Months Ended
	Jun. 30, 2017
Collaboration Agreements [Abstract]
Schedule of Collaboration Agreements	A financial summary of certain period activity and the period-end balances related to our collaboration arrangements is presented below 1,2 : Three-Month Periods Ended June 30, Research and Development Expense Upfront Fees Milestones Extension/Termination of Arrangements Amortization of Prepaid Research and Development Equity Investments Made During Period Agios 2017 $— $— $— $— $31 2016 200 — — — — Juno 3 2017 — — — — — 2016 50 — — — — Other Collaboration Arrangements 2017 75 — — 3 36 2016 34 10 — 4 — Six-Month Periods Ended June 30, Research and Development Expense Upfront Fees Milestones Extension/Termination of Arrangements Amortization of Prepaid Research and Development Equity Investments Made During Period Agios 2017 $8 $— $— $— $31 2016 200 25 — — — Juno 3 2017 — — — — 2 2016 50 — — — 41 Other Collaboration Arrangements 2017 77 — 7 7 46 2016 114 50 — 10 37 Balances as of: Intangible Asset Balance Equity Investment Balance Percentage of Outstanding Equity Agios June 30, 2017 $— $302 12% December 31, 2016 — 219 12% Juno June 30, 2017 — 309 10% December 31, 2016 — 194 10% Other Collaboration Arrangements June 30, 2017 13 552 N/A December 31, 2016 22 439 N/A 1 Activity and balances are presented specifically for notable new collaborations and for those collaborations which we have described in detail in our 2016 Annual Report on Form 10-K if there has been significant activity during the periods presented. Amounts related to collaborations that are not specifically presented are included in the aggregate as Other Collaboration Arrangements. 2 In addition to the expenses noted in the tables above, we may also incur expenses for collaboration agreement related activities that are managed or funded by us. 3 Our equity investment in Juno made in the first quarter of 2016 was transacted at a price per share that exceeded the market value of Juno's publicly traded common stock on the transaction closing date, resulting in an expense for the premium of $6 million that was recorded in the Consolidated Statement of Income as Other (expense) income, net in the first quarter of 2016.

Nature of Business and Basis 35

Nature of Business and Basis of Presentation (Narrative) (Details)	6 Months Ended
	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Maximum equity ownership percentage, investments	50.00%

New Accounting Standards (Detai

New Accounting Standards (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2017	Jun. 30, 2016	Jan. 01, 2017	Dec. 31, 2016
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Excess tax benefit	$ 95	$ 170
Net cash provided by operating activities		2,469	$ 1,993
Net cash (used in) provided by financing activities		(424)	(1,624)
Publicly traded equity investments held by company	1,200	1,200
Marketable securities unrealized gain		482
Deferred tax liability	$ 171	$ 171
Operating leases, future minimum payments due					$ 213
New Accounting Pronouncement, Early Adoption, Effect | Accounting Standards Update 2016-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Increase in diluted shares outstanding (in shares)	7	7.3
New Accounting Pronouncement, Early Adoption, Effect | Accounting Standards Update 2016-09, Statutory Tax Withholding Component
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net cash provided by operating activities			82
Net cash (used in) provided by financing activities			$ (82)
New Accounting Pronouncement, Early Adoption, Effect | Retained Earnings | Accounting Standards Update 2016-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of new accounting principle in period of adoption				$ 18

Acquisitions and Divestitures (

Acquisitions and Divestitures (Delinia) (Details) - Delinia $ in Millions	Feb. 03, 2017USD ($)
Business Acquisition [Line Items]
Consideration transferred	$ 302
Net assets acquired	2
Research and development
Business Acquisition [Line Items]
Consideration transferred	300
Development Regulatory and Commercial Milestones
Business Acquisition [Line Items]
Potential milestone payment	$ 475

Acquisitions and Divestitures38

Acquisitions and Divestitures (Other Acquisitions) (Details) - Privately Held Biotech - USD ($) $ in Millions	Feb. 03, 2017	Jun. 30, 2017
Business Acquisition [Line Items]
Consideration transferred		$ 26
Net assets acquired		1
Research and development
Business Acquisition [Line Items]
Acquisition expense		$ 25
Development and Regulatory Milestones
Business Acquisition [Line Items]
Potential milestone payment	$ 210

Acquisitions and Divestitures39

Acquisitions and Divestitures (LifebankUSA) (Details) - USD ($) shares in Millions, $ in Millions	1 Months Ended
	Feb. 29, 2016	Jun. 30, 2017
LifebankUSA | Other Income (Expense)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain on sale of CCT's biobanking business	$ 38
HLI
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Percentage of outstanding Equity		14.00%
HLI | LifebankUSA
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Investment owned, balance, shares	3.4
Investment owned, at fair value	$ 40

Earnings Per Share (Schedule of

Earnings Per Share (Schedule of Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Earnings Per Share [Abstract]
Net income	$ 1,061	$ 598	$ 2,002	$ 1,399
Weighted-average shares:
Basic (in shares)	780.4	775.6	779.7	778.1
Effect of dilutive securities:
Options, restricted stock units, performance-based restricted stock units and other (in shares)	31.3	25.9	31.8	26.6
Diluted (in shares)	811.7	801.5	811.5	804.7
Net income per share:
Basic (in dollars per share)	$ 1.36	$ 0.77	$ 2.57	$ 1.80
Diluted (in dollars per share)	$ 1.31	$ 0.75	$ 2.47	$ 1.74

Earnings Per Share (Narrative)

Earnings Per Share (Narrative) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	21,400,000	19,200,000	22,000,000	19,700,000
Aggregate authorized amount	$ 20,500,000,000		$ 20,500,000,000
Shares repurchased under share repurchase program (in shares)	4,200,000		6,800,000
Shares purchased under share repurchase program	$ 507,000,000		$ 811,000,000
Remaining authorized repurchase amount under stock purchase program	$ 3,900,000,000		$ 3,900,000,000
Purchased Put Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Put options outstanding (in shares)	0		0		0

Earnings Per Share (Gains from

Earnings Per Share (Gains from Premium Put Options) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Other income (expense) | Purchased Put
Derivative Instruments, Gain (Loss) [Line Items]
Gain from sale of put options	$ 0	$ 3	$ 0	$ 8

Accumulated Other Comprehensi43

Accumulated Other Comprehensive Income (Loss) (Components of AOCI) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance at the beginning of the period			$ 419	$ 768
Other comprehensive income (loss) before reclassifications, net of tax			(38)	(395)
Reclassified losses (gains) from accumulated other comprehensive income, net of tax			(144)	(122)
Total other comprehensive income (loss)	$ (173)	$ (1)	(182)	(517)
Balance at the end of the period	237	251	237	251
Pension Liability Adjustment
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance at the beginning of the period			(38)	(14)
Other comprehensive income (loss) before reclassifications, net of tax			0	0
Reclassified losses (gains) from accumulated other comprehensive income, net of tax			0	0
Total other comprehensive income (loss)			0	0
Balance at the end of the period	(38)	(14)	(38)	(14)
Net Unrealized Gains (Losses) On Available-for-Sale Marketable Securities
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance at the beginning of the period			144	272
Other comprehensive income (loss) before reclassifications, net of tax			148	(226)
Reclassified losses (gains) from accumulated other comprehensive income, net of tax			21	26
Total other comprehensive income (loss)			169	(200)
Balance at the end of the period	313	72	313	72
Net Unrealized Gains (Losses) Related to Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance at the beginning of the period			415	586
Other comprehensive income (loss) before reclassifications, net of tax			(227)	(172)
Reclassified losses (gains) from accumulated other comprehensive income, net of tax			(165)	(148)
Total other comprehensive income (loss)			(392)	(320)
Balance at the end of the period	23	266	23	266
Foreign Currency Translation Adjustments
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance at the beginning of the period			(102)	(76)
Other comprehensive income (loss) before reclassifications, net of tax			41	3
Reclassified losses (gains) from accumulated other comprehensive income, net of tax			0	0
Total other comprehensive income (loss)			41	3
Balance at the end of the period	$ (61)	$ (73)	$ (61)	$ (73)

Accumulated Other Comprehensi44

Accumulated Other Comprehensive Income (Loss) (Reclassification of AOCI) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Other Comprehensive Income (Loss)
Net product sales	$ 3,256	$ 2,744	$ 6,206	$ 5,239
Interest (expense)	(126)	(123)	(253)	(245)
Interest and investment income, net	24	7	39	14
Income tax provision	69	97	153	218
Total reclassification, net of tax			144	122
Gains (losses) from cash-flow hedges:
Other Comprehensive Income (Loss)
Total reclassification, net of tax			165	148
Gains (losses) from available-for-sale marketable securities:
Other Comprehensive Income (Loss)
Total reclassification, net of tax			(21)	(26)
Gains (Losses) Reclassified Out of Accumulated Other Comprehensive Income
Other Comprehensive Income (Loss)
Total reclassification, net of tax	59	42	144	122
Gains (Losses) Reclassified Out of Accumulated Other Comprehensive Income | Gains (losses) from cash-flow hedges: | Foreign exchange contracts
Other Comprehensive Income (Loss)
Net product sales	81	62	167	150
Gains (Losses) Reclassified Out of Accumulated Other Comprehensive Income | Gains (losses) from cash-flow hedges: | Treasury rate lock agreements
Other Comprehensive Income (Loss)
Interest (expense)	(2)	(1)	(3)	(2)
Gains (Losses) Reclassified Out of Accumulated Other Comprehensive Income | Gains (losses) from cash-flow hedges: | Interest rate swap agreements
Other Comprehensive Income (Loss)
Interest (expense)	0	(1)	(1)	(1)
Income tax provision	1	1	2	1
Gains (Losses) Reclassified Out of Accumulated Other Comprehensive Income | Gains (losses) from available-for-sale marketable securities:
Other Comprehensive Income (Loss)
Interest and investment income, net	(34)	(30)	(34)	(40)
Income tax provision	$ 13	$ 11	$ 13	$ 14

Financial Instruments and Fai45

Financial Instruments and Fair Value Measurement (Assumption Calculations) (Details) - Significant Unobservable Inputs (Level 3) - Income Approach Valuation Technique - Obligations	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Minimum
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Discount rate	1.50%	1.50%
Probability of payment	0.00%	0.00%
Maximum
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Discount rate	12.00%	12.00%
Probability of payment	95.00%	95.00%
Weighted Average
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Discount rate	8.80%	8.60%
Probability of payment	42.70%	42.00%

Financial Instruments and Fai46

Financial Instruments and Fair Value Measurement (Narrative) (Details) $ in Millions	Jun. 30, 2017USD ($)
Nogra Pharma Limited
Business Acquisition [Line Items]
Potential milestone payment	$ 1,900
Maximum | Gloucester Pharmaceuticals, Inc.
Business Acquisition [Line Items]
Potential milestone payment	120
Maximum | Avila
Business Acquisition [Line Items]
Potential milestone payment	475
Maximum | Quanticel
Business Acquisition [Line Items]
Potential milestone payment	$ 314

Financial Instruments and Fai47

Financial Instruments and Fair Value Measurement (Measurement Inputs) (Details) - Recurring basis - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Quoted Price in Active Markets for Identical Assets (Level 1)
Assets:
Available-for-sale securities	$ 1,214	$ 891
Forward currency contracts	0	0
Purchased currency options	0	0
Interest rate swaps	0	0
Total assets	1,214	891
Liabilities:
Contingent value rights	(54)	(44)
Written currency options	0	0
Other acquisition related contingent consideration	0	0
Total liabilities	(54)	(44)
Significant Other Observable Inputs (Level 2)
Assets:
Available-for-sale securities	2,266	909
Forward currency contracts	51	379
Purchased currency options	88	140
Interest rate swaps	18	31
Total assets	2,423	1,459
Liabilities:
Contingent value rights	0	0
Written currency options	(114)	(54)
Other acquisition related contingent consideration	0	0
Total liabilities	(114)	(54)
Significant Unobservable Inputs (Level 3)
Assets:
Available-for-sale securities	0	0
Forward currency contracts	0	0
Purchased currency options	0	0
Interest rate swaps	0	0
Total assets	0	0
Liabilities:
Contingent value rights	0	0
Written currency options	0	0
Other acquisition related contingent consideration	(1,488)	(1,490)
Total liabilities	(1,488)	(1,490)
Fair Value
Assets:
Available-for-sale securities	3,480	1,800
Forward currency contracts	51	379
Purchased currency options	88	140
Interest rate swaps	18	31
Total assets	3,637	2,350
Liabilities:
Contingent value rights	(54)	(44)
Written currency options	(114)	(54)
Other acquisition related contingent consideration	(1,488)	(1,490)
Total liabilities	$ (1,656)	$ (1,588)

Financial Instruments and Fai48

Financial Instruments and Fair Value Measurement (Level 3 Fair Value Roll-Forward) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period	$ (1,527)	$ (1,550)	$ (1,490)	$ (1,522)
Amounts acquired or issued, including measurement period adjustments	0	0	0	0
Net change in fair value	20	50	(17)	22
Settlements, including transfers to Accrued expenses and other current liabilities	19	30	19	30
Balance at end of period	(1,488)	(1,470)	(1,488)	(1,470)
Gloucester Pharmaceuticals, Inc.
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period	(22)	(19)	(21)	(19)
Amounts acquired or issued, including measurement period adjustments	0	0	0	0
Net change in fair value	0	(1)	(1)	(1)
Settlements, including transfers to Accrued expenses and other current liabilities	0	0	0	0
Balance at end of period	(22)	(20)	(22)	(20)
Nogra Pharma Limited
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period	(1,377)	(1,267)	(1,346)	(1,239)
Amounts acquired or issued, including measurement period adjustments	0	0	0	0
Net change in fair value	5	(28)	(26)	(56)
Settlements, including transfers to Accrued expenses and other current liabilities	0	0	0	0
Balance at end of period	(1,372)	(1,295)	(1,372)	(1,295)
Avila
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period	(8)	(96)	(8)	(97)
Amounts acquired or issued, including measurement period adjustments	0	0	0	0
Net change in fair value	5	81	5	82
Settlements, including transfers to Accrued expenses and other current liabilities	0	0	0	0
Balance at end of period	(3)	(15)	(3)	(15)
Quanticel
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period	(120)	(168)	(115)	(167)
Amounts acquired or issued, including measurement period adjustments	0	0	0	0
Net change in fair value	10	(2)	5	(3)
Settlements, including transfers to Accrued expenses and other current liabilities	19	30	19	30
Balance at end of period	$ (91)	$ (140)	$ (91)	$ (140)

Derivative Instruments and He49

Derivative Instruments and Hedging Activities (Narrative) (Details) - Foreign currency forward contracts	6 Months Ended
	Jun. 30, 2017
Minimum
Derivative [Line Items]
Derivative, remaining maturity	3 years
Maximum
Derivative [Line Items]
Derivative, remaining maturity	5 years

Derivative Instruments and He50

Derivative Instruments and Hedging Activities (Foreign Currency Forward Contracts) (Details) - Foreign currency forward contracts - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Derivatives not designated as hedging instruments
Derivative Instruments, Gain (Loss) [Line Items]
Notional Amount	$ 1,100	$ 934
Cash flow hedges | Designated as hedging instruments
Derivative Instruments, Gain (Loss) [Line Items]
Notional Amount	2,468	2,850
Cash flow hedges | Australian Dollar | Designated as hedging instruments
Derivative Instruments, Gain (Loss) [Line Items]
Notional Amount	69	49
Cash flow hedges | British Pound | Designated as hedging instruments
Derivative Instruments, Gain (Loss) [Line Items]
Notional Amount	161	199
Cash flow hedges | Canadian Dollar | Designated as hedging instruments
Derivative Instruments, Gain (Loss) [Line Items]
Notional Amount	270	193
Cash flow hedges | Euro | Designated as hedging instruments
Derivative Instruments, Gain (Loss) [Line Items]
Notional Amount	1,367	1,812
Cash flow hedges | Japanese Yen | Designated as hedging instruments
Derivative Instruments, Gain (Loss) [Line Items]
Notional Amount	$ 601	$ 597
Minimum
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, remaining maturity	3 years
Minimum | Designated as hedging instruments
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, remaining maturity	25 months	25 months
Maximum
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, remaining maturity	5 years
Maximum | Designated as hedging instruments
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, remaining maturity	31 months	31 months

Derivative Instruments and He51

Derivative Instruments and Hedging Activities (Foreign Currency Option Contracts) (Details) - Foreign exchange option contracts - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Purchased Put
Derivative [Line Items]
Notional Amount	$ 510	$ 387
Designated as hedging instruments | Purchased Put
Derivative [Line Items]
Notional Amount	3,181	1,790
Designated as hedging instruments | Written Call
Derivative [Line Items]
Notional Amount	$ 3,580	$ 2,009
Minimum | Purchased Put
Derivative [Line Items]
Derivative, remaining maturity	18 months	18 months
Minimum | Designated as hedging instruments
Derivative [Line Items]
Derivative, remaining maturity	42 months	42 years
Maximum | Purchased Put
Derivative [Line Items]
Derivative, remaining maturity	24 months	24 months
Maximum | Designated as hedging instruments
Derivative [Line Items]
Derivative, remaining maturity	48 months	48 years

Derivative Instruments and He52

Derivative Instruments and Hedging Activities (Forward Starting Interest Rate Swap Contracts) (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Forward Starting Interest Rate Swaps
Derivative [Line Items]
Derivative, remaining maturity	10 years	10 years
Designated as hedging instruments | Forward Starting Interest Rate Swaps Effective 2017
Derivative [Line Items]
Notional Amount	$ 500	$ 500
Designated as hedging instruments | Forward Starting Interest Rate Swaps Effective 2018
Derivative [Line Items]
Notional Amount	$ 500	$ 500

Derivative Instruments and He53

Derivative Instruments and Hedging Activities (Forward Starting Interest Rate) (Details) - 3.875% senior notes due 2025 - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Derivative [Line Items]
Interest rate	3.875%
Fair value hedges | Senior notes | Designated as hedging instruments | Interest rate swap agreements
Derivative [Line Items]
Interest rate	3.875%
Notional Amount	$ 200	$ 200

Derivative Instruments and He54

Derivative Instruments and Hedging Activities (Fair Value and Presentation in the Balance Sheet) (Details) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Derivatives, Fair Value [Line Items]
Derivative asset, fair value, gross asset	$ 233	$ 596
Derivative liability, fair value, gross asset	190	100
Foreign exchange contracts | Derivatives designated as hedging instruments: | Other current assets
Derivatives, Fair Value [Line Items]
Derivative asset, fair value, gross asset	81	317
Derivative liability, fair value, gross asset	23	10
Foreign exchange contracts | Derivatives designated as hedging instruments: | Other non-current assets
Derivatives, Fair Value [Line Items]
Derivative asset, fair value, gross asset	33	178
Derivative liability, fair value, gross asset	26	71
Foreign exchange contracts | Derivatives designated as hedging instruments: | Other non-current liabilities
Derivatives, Fair Value [Line Items]
Derivative asset, fair value, gross liability	53
Derivative liability, fair value, gross liability	100
Foreign exchange contracts | Derivatives not designated as hedging instruments: | Accrued expenses and other current liabilities
Derivatives, Fair Value [Line Items]
Derivative asset, fair value, gross liability	8
Derivative liability, fair value, gross liability	13
Interest rate swap agreements | Derivatives designated as hedging instruments: | Other current assets
Derivatives, Fair Value [Line Items]
Derivative asset, fair value, gross asset	3	1
Derivative liability, fair value, gross asset	0	0
Interest rate swap agreements | Derivatives designated as hedging instruments: | Other non-current assets
Derivatives, Fair Value [Line Items]
Derivative asset, fair value, gross asset	27	38
Derivative liability, fair value, gross asset	9	7
Interest rate swap agreements | Derivatives designated as hedging instruments: | Other non-current liabilities
Derivatives, Fair Value [Line Items]
Derivative asset, fair value, gross liability	0	0
Derivative liability, fair value, gross liability	4	2
Interest rate swap agreements | Derivatives not designated as hedging instruments: | Other current assets
Derivatives, Fair Value [Line Items]
Derivative asset, fair value, gross asset	2	2
Derivative liability, fair value, gross asset	2	2
Interest rate swap agreements | Derivatives not designated as hedging instruments: | Other non-current assets
Derivatives, Fair Value [Line Items]
Derivative asset, fair value, gross asset	2	3
Derivative liability, fair value, gross asset	1	2
Foreign exchange contracts | Derivatives not designated as hedging instruments: | Other current assets
Derivatives, Fair Value [Line Items]
Derivative asset, fair value, gross asset	24	57
Derivative liability, fair value, gross asset	7	4
Foreign exchange contracts | Derivatives not designated as hedging instruments: | Accrued expenses and other current liabilities
Derivatives, Fair Value [Line Items]
Derivative asset, fair value, gross liability	0	0
Derivative liability, fair value, gross liability	$ 5	$ 2

Derivative Instruments and He55

Derivative Instruments and Hedging Activities (Schedule of Impacts on Income) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Derivative [Line Items]
Amount of Gain/(Loss) Reclassified from Accumulated OCI into Income			$ (60)	$ 14
Designated as hedging instruments
Derivative [Line Items]
Foreign currency cash flow hedge gain (loss) to be reclassified during next 12 months	$ 29	$ 8	29	8
Foreign exchange contracts | Other (expense) income, net | Derivatives not designated as hedging instruments
Derivative [Line Items]
Amount of Gain/(Loss) Recognized in OCI on Derivative	(20)	0	(42)	(28)
Treasury rate lock agreements | Other (expense) income, net | Derivatives not designated as hedging instruments
Derivative [Line Items]
Amount of Gain/(Loss) Recognized in OCI on Derivative	0	3	0	8
Cash flow hedges | Foreign exchange contracts | Designated as hedging instruments
Derivative [Line Items]
Amount of Gain/(Loss) Recognized in OCI on Derivative	(136)	53	(217)	(142)
Cash flow hedges | Foreign exchange contracts | Net product sales | Designated as hedging instruments
Derivative [Line Items]
Amount of Gain/(Loss) Reclassified from Accumulated OCI into Income	81	62	167	150
Cash flow hedges | Foreign exchange contracts | Other (expense) income, net | Designated as hedging instruments
Derivative [Line Items]
Amount of Gain/(Loss) Recognized in Income on Derivative	(43)	9	(24)	23
Gain (loss) from components excluded from assessment of cash flow hedge effectiveness, net	43	1	24	21
Derivative, net hedge ineffectiveness gain (loss)				2
Cash flow hedges | Treasury rate lock agreements | Designated as hedging instruments
Derivative [Line Items]
Amount of Gain/(Loss) Recognized in OCI on Derivative	0	0	0	0
Cash flow hedges | Treasury rate lock agreements | Interest (expense) | Designated as hedging instruments
Derivative [Line Items]
Amount of Gain/(Loss) Reclassified from Accumulated OCI into Income	(2)	(1)	(3)	(2)
Cash flow hedges | Treasury rate lock agreements | Other (expense) income, net | Designated as hedging instruments
Derivative [Line Items]
Amount of Gain/(Loss) Recognized in Income on Derivative	0	0	0	0
Cash flow hedges | Interest rate swap agreements | Designated as hedging instruments
Derivative [Line Items]
Amount of Gain/(Loss) Recognized in OCI on Derivative	(17)	(22)	(17)	(48)
Cash flow hedges | Interest rate swap agreements | Interest (expense) | Designated as hedging instruments
Derivative [Line Items]
Amount of Gain/(Loss) Reclassified from Accumulated OCI into Income	0	(1)	(1)	(1)
Cash flow hedges | Interest rate swap agreements | Other (expense) income, net | Designated as hedging instruments
Derivative [Line Items]
Amount of Gain/(Loss) Recognized in Income on Derivative	0	0	0	0
Fair value hedges | Interest rate swap agreements | Interest (expense) | Designated as hedging instruments
Derivative [Line Items]
Amount of Gain/(Loss) Recognized in Income on Derivative	$ 10	$ 13	$ 19	$ 26

Cash, Cash Equivalents and Ma56

Cash, Cash Equivalents and Marketable Securities Available-for-Sale (Narrative) (Details) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Cash, Cash Equivalents, and Short-term Investments [Abstract]
Time deposits and repurchase agreements	$ 1,800	$ 2,800
Commercial paper	161	65
Money market funds, at carrying value	$ 3,400	$ 1,600

Cash, Cash Equivalents and Ma57

Cash, Cash Equivalents and Marketable Securities Available-for-Sale (Schedule of Available-for-Sale Reconciliation) (Details) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 3,000	$ 1,583
Gross Unrealized Gain	486	238
Gross Unrealized Loss	(6)	(21)
Estimated Fair Value	3,480	1,800
U.S. Treasury securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	100	121
Gross Unrealized Gain	0	0
Gross Unrealized Loss	(1)	(1)
Estimated Fair Value	99	120
U.S. government-sponsored agency securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	23
Gross Unrealized Gain	0
Gross Unrealized Loss	0
Estimated Fair Value	23
U.S. government-sponsored agency MBS
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	21	31
Gross Unrealized Gain	0	0
Gross Unrealized Loss	(1)	0
Estimated Fair Value	20	31
Corporate debt - global
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	939	378
Gross Unrealized Gain	0	0
Gross Unrealized Loss	0	(1)
Estimated Fair Value	939	377
Asset backed securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	9	17
Gross Unrealized Gain	0	0
Gross Unrealized Loss	0	0
Estimated Fair Value	9	17
Ultra short income fund
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	350
Gross Unrealized Gain	0
Gross Unrealized Loss	0
Estimated Fair Value	350
Time deposits and Repurchase agreements
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	826
Gross Unrealized Gain	0
Gross Unrealized Loss	0
Estimated Fair Value	826
Time deposits
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		364
Gross Unrealized Gain		0
Gross Unrealized Loss		0
Estimated Fair Value		364
Marketable equity securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	732	672
Gross Unrealized Gain	486	238
Gross Unrealized Loss	(4)	(19)
Estimated Fair Value	$ 1,214	$ 891

Cash, Cash Equivalents and Ma58

Cash, Cash Equivalents and Marketable Securities Available-for-Sale (Duration Periods) (Details) $ in Millions	Jun. 30, 2017USD ($)
Amortized Cost
Duration of one year or less	$ 997
Duration of one through three years	438
Duration of three through five years	7
Total	1,442
Fair Value
Duration of one year or less	997
Duration of one through three years	437
Duration of three through five years	6
Total	$ 1,440

Inventory (Details)

Inventory (Details) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Raw materials	$ 267	$ 274
Work in process	109	87
Finished goods	157	137
Total	$ 533	$ 498

Intangible Assets and Goodwil60

Intangible Assets and Goodwill (Summary of Intangible Assets) (Details) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Intangible Assets By Category
Gross Carrying Value	$ 3,998	$ 3,998
Accumulated Amortization	(2,251)	(2,077)
Intangible Assets, Net	1,747	1,921
Total intangible assets
Gross Carrying Value	12,469	12,469
Intangible Assets, Net	10,218	10,392
Acquired developed product rights
Intangible Assets By Category
Gross Carrying Value	3,406	3,406
Accumulated Amortization	(1,816)	(1,694)
Intangible Assets, Net	1,590	1,712
Technology
Intangible Assets By Category
Gross Carrying Value	483	483
Accumulated Amortization	(373)	(326)
Intangible Assets, Net	110	157
Licenses
Intangible Assets By Category
Gross Carrying Value	66	66
Accumulated Amortization	(29)	(26)
Intangible Assets, Net	37	40
Other
Intangible Assets By Category
Gross Carrying Value	43	43
Accumulated Amortization	(33)	(31)
Intangible Assets, Net	10	12
Acquired IPR&D product rights
Non-amortizable intangible assets:
Carrying value	$ 8,471	$ 8,471

Intangible Assets and Goodwil61

Intangible Assets and Goodwill (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of acquired intangible assets	$ 89	$ 176	$ 173	$ 270
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Future annual amortization, 2017	336		336
Future annual amortization, 2018	252		252
Future annual amortization, 2019	156		156
Future annual amortization, 2020	154		154
Future annual amortization, 2021	$ 152		$ 152

Debt (Narrative) (Details)

Debt (Narrative) (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016	Apr. 30, 2016
Debt
Short-term debt	$ 0	$ 0
Treasury rate lock agreements
Debt
Losses recorded to AOCI	57,000,000
Interest rate swap agreements | Designated as hedging instruments
Debt
Gains recorded as reduction of debt	158,000,000	174,000,000
Commercial Paper
Debt
Short-term debt	0	0
Maximum borrowing capacity	2,000,000,000	2,000,000,000	$ 2,000,000,000
Revolving Credit Facility
Debt
Long-term line of credit	0	0
Level 2
Debt
Senior notes, fair value	$ 15,000,000,000	$ 14,600,000,000

Debt (Short-Term Borrowings and

Debt (Short-Term Borrowings and Current Portion of Long-Term Debt) (Details) - 1.900% senior notes due 2017 - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Short-term Debt [Line Items]
1.900% senior notes due 2017	$ 500	$ 501
Interest rate	1.90%

Debt (Senior Notes Carrying Val

Debt (Senior Notes Carrying Values) (Details) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Carrying values of the entity's senior notes
Long-term debt	$ 13,783	$ 13,789
2.125% senior notes due 2018
Carrying values of the entity's senior notes
Long-term debt	$ 999	998
Interest rate	2.125%
2.300% senior notes due 2018
Carrying values of the entity's senior notes
Long-term debt	$ 401	402
Interest rate	2.30%
2.250% senior notes due 2019
Carrying values of the entity's senior notes
Long-term debt	$ 507	509
Interest rate	2.25%
2.875% senior notes due 2020
Carrying values of the entity's senior notes
Long-term debt	$ 1,494	1,493
Interest rate	2.875%
3.950% senior notes due 2020
Carrying values of the entity's senior notes
Long-term debt	$ 516	518
Interest rate	3.95%
3.250% senior notes due 2022
Carrying values of the entity's senior notes
Long-term debt	$ 1,049	1,054
Interest rate	3.25%
3.550% senior notes due 2022
Carrying values of the entity's senior notes
Long-term debt	$ 994	994
Interest rate	3.55%
4.000% senior notes due 2023
Carrying values of the entity's senior notes
Long-term debt	$ 740	744
Interest rate	4.00%
3.625% senior notes due 2024
Carrying values of the entity's senior notes
Long-term debt	$ 1,001	1,001
Interest rate	3.625%
3.875% senior notes due 2025
Carrying values of the entity's senior notes
Long-term debt	$ 2,480	2,475
Interest rate	3.875%
5.700% senior notes due 2040
Carrying values of the entity's senior notes
Long-term debt	$ 247	247
Interest rate	5.70%
5.250% senior notes due 2043
Carrying values of the entity's senior notes
Long-term debt	$ 393	393
Interest rate	5.25%
4.625% senior notes due 2044
Carrying values of the entity's senior notes
Long-term debt	$ 987	987
Interest rate	4.625%
5.000% senior notes due 2045
Carrying values of the entity's senior notes
Long-term debt	$ 1,975	$ 1,974
Interest rate	5.00%
Senior notes
Carrying values of the entity's senior notes
Long-term debt	$ 13,750

Share-Based Compensation (Compo

Share-Based Compensation (Components of Share-Based Compensation Expense) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Proceeds and Excess Tax Benefit from Share-based Compensation	$ 95		$ 170
Total share-based compensation expense	170	$ 158	323	$ 304
Tax benefit related to share-based compensation expense	46	44	87	84
Reduction in income	124	114	236	220
Cost of goods sold (excluding amortization of acquired intangible assets)
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total share-based compensation expense	8	9	15	18
Research and development
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total share-based compensation expense	70	64	135	126
Selling, general and administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total share-based compensation expense	$ 92	$ 85	$ 173	$ 160

Share-Based Compensation (Summa

Share-Based Compensation (Summary of Stock Options, RSUs and PSUs) (Details) shares in Thousands	6 Months Ended
	Jun. 30, 2017shares
Stock Options
Stock option activity
Outstanding at the beginning of the period (in shares)	73,800
Granted (in shares)	5,900
Exercised/released (in shares)	(9,700)
Forfeited (in shares)	(900)
Outstanding at the end of the period (in shares)	69,100
RSUs
Restricted and Performance-Based Restricted Stock Units
Nonvested at the beginning of the period (in shares)	7,100
Granted (in shares)	1,500
Exercised (in shares)	(300)
Forfeited (in shares)	(300)
Nonvested at the end of the period (in shares)	8,000
PSUs
Restricted and Performance-Based Restricted Stock Units
Nonvested at the beginning of the period (in shares)	463
Granted (in shares)	169
Exercised (in shares)	(1)
Forfeited (in shares)	(27)
Nonvested at the end of the period (in shares)	604

Share-Based Compensation (Unves

Share-Based Compensation (Unvested Awards and Weighted-Average Periods) (Details) $ in Millions	6 Months Ended
	Jun. 30, 2017USD ($)
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost	$ 561
Expected weighted-average period in years of compensation cost to be recognized	2 years 1 month 6 days
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost	$ 405
Expected weighted-average period in years of compensation cost to be recognized	1 year 6 months
PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost	$ 35
Expected weighted-average period in years of compensation cost to be recognized	1 year 7 months 6 days

Income Taxes (Narrative) (Detai

Income Taxes (Narrative) (Details) $ in Millions	6 Months Ended
	Jun. 30, 2017USD ($)
Income Tax Disclosure [Abstract]
Gross unrecognized tax benefits, increase	$ 42
Increases to the amount of unrecognized tax benefits	34
Accrued interest on unrecognized tax benefits	$ 8

Collaboration Agreements (Narra

Collaboration Agreements (Narrative) (Details) $ in Millions	6 Months Ended
	Jun. 30, 2017USD ($)
Other Collaboration Arrangements
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Potential milestone payment	$ 203

Collaboration Agreements (Sched

Collaboration Agreements (Schedule of Collaboration Agreements) (Details) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Mar. 31, 2016	Jun. 30, 2017	Jun. 30, 2016
Agios
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Upfront Fees	$ 0	$ 200		$ 8	$ 200
Milestones	0	0		0	25
Extension/Termination of Arrangements	0	0		0	0
Amortization of Prepaid Research and Development	0	0		0	0
Equity Investments Made During Period	31	0		31	0
Juno
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Upfront Fees	0	50		0	50
Milestones	0	0		0	0
Extension/Termination of Arrangements	0	0		0	0
Amortization of Prepaid Research and Development	0	0		0	0
Equity Investments Made During Period	0	0		2	41
Equity investment premium paid			$ 6
Other Collaboration Arrangements
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Upfront Fees	75	34		77	114
Milestones	0	10		0	50
Extension/Termination of Arrangements	0	0		7	0
Amortization of Prepaid Research and Development	3	4		7	10
Equity Investments Made During Period	$ 36	$ 0		$ 46	$ 37

Collaboration Agreements (Perio

Collaboration Agreements (Period End Balances) (Details) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Intangible Asset Balance	$ 10,218	$ 10,392
Agios
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Intangible Asset Balance	0	0
Equity Investment Balance	$ 302	$ 219
Percentage of Outstanding Equity	12.00%	12.00%
Juno
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Intangible Asset Balance	$ 0	$ 0
Equity Investment Balance	$ 309	$ 194
Percentage of Outstanding Equity	10.00%	10.00%
Other Collaboration Arrangements
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Intangible Asset Balance	$ 13	$ 22
Equity Investment Balance	$ 552	$ 439

Legal Proceedings (Narrative) (

Legal Proceedings (Narrative) (Details) $ in Millions	Feb. 02, 2017USD ($)	Jun. 07, 2013	Jul. 13, 2017USD ($)state	Jun. 30, 2017USD ($)
Loss Contingencies [Line Items]
Settlement liabilities				$ 315
Children's Medical Center Corporation
Loss Contingencies [Line Items]
Payments for legal settlements	$ 199
Children's Medical Center Corporation | REVLIMID royalty
Loss Contingencies [Line Items]
Royalty rate		0.01
Children's Medical Center Corporation | POMALYST/IMNOVID royalty
Loss Contingencies [Line Items]
Royalty rate		0.025
Subsequent Event
Loss Contingencies [Line Items]
Settlement liabilities			$ 315
Number of states involved in lawsuit | state			28

Subsequent Event (Narrative) (D

Subsequent Event (Narrative) (Details) $ / shares in Units, shares in Millions, $ in Millions	Jul. 27, 2017collaborative_arrangement	Jul. 05, 2017USD ($)$ / sharesshares	Mar. 21, 2014	Jul. 27, 2017USD ($)
Forma Therapeutics [Member]
Business Acquisition [Line Items]
Period for option to license the rights to select current and future FORMA drug candidates			3 years 6 months
Scenario, Forecast | BeiGene
Business Acquisition [Line Items]
License Costs		$ 263
Investment shares, to be received | shares		32.7
Percentage of outstanding Equity		5.90%
Share price (USD per share) | $ / shares		$ 4.58
Share price premium		35.00%
Volume weighted average price period		11 days
Potential milestone payment		$ 980
Scenario, Forecast | BeiGene | American Depository Shares
Business Acquisition [Line Items]
Share price (USD per share) | $ / shares		$ 59.55
Scenario, Forecast | Forma Therapeutics [Member]
Business Acquisition [Line Items]
License Costs				$ 195
Period for option to license the rights to select current and future FORMA drug candidates				2 years 3 months
Number of collaborations | collaborative_arrangement	2