FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

Financial assets and liabilities measured at fair value on a recurring basis are summarized below:

	March 31, 2022						December 31, 2021
Dollars in Millions	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Cash and cash equivalents - money market and other securities	$	—	$	9,467	$	—	$	—	$	12,225	$	—
Marketable debt securities:
Certificates of deposit	—		2,013		—		—		2,264		—
Commercial paper	—		325		—		—		320		—
Corporate debt securities	—		261		—		—		403		—
Derivative assets	—		288		10		—		206		12
Equity investments	1,410		44		—		1,910		109		—
Derivative liabilities	—		58		—		—		25		—
Contingent consideration liability:
Contingent value rights	6		—		—		8		—		—
Other acquisition related contingent consideration	—		—		34		—		—		35

Marketable Securities

The following table summarizes marketable debt securities:

	March 31, 2022								December 31, 2021
Dollars in Millions	Amortized Cost		Gross Unrealized						Amortized Cost		Gross Unrealized
			Gains		Losses		Fair Value				Gains		Losses		Fair Value
Certificates of deposit	$	2,013	$	—	$	—	$	2,013	$	2,264	$	—	$	—	$	2,264
Commercial paper	325		—		—		325		320		—		—		320
Corporate debt securities	260		1		—		261		401		2		—		403
Total marketable debt securities(a)	$	2,598	$	1	$	—	$	2,599	$	2,985	$	2	$	—	$	2,987

(a)    All marketable debt securities mature within one year as of March 31, 2022 and December 31, 2021.

Schedule of Equity Investments

The following summarizes the carrying amount of equity investments:

Dollars in Millions	March 31, 2022		December 31, 2021
Equity investments with readily determinable fair values	$	1,454	$	2,019
Equity investments without readily determinable fair values	330		283
Equity method investments	629		666
Total equity investments	$	2,413	$	2,968

Debt Securities, Trading, and Equity Securities, FV-NI

The following summarizes the activity related to equity investments. Changes in fair value of equity investments are included in Other (income)/expense, net.

	Three Months Ended March 31,
Dollars in Millions	2022		2021
Equity investments with readily determined fair values(a)
Net loss/(gain) recognized	$	598	$	(196)
Net loss recognized on investments sold	—		3
Net unrealized loss/(gain) recognized on investments still held	598		(199)
Equity investments without readily determinable fair values
Upward adjustments	(6)		(269)
Impairments and downward adjustments	2		1
Cumulative upward adjustments	(109)
Cumulative impairments and downward adjustments	52
Equity in net (income)/loss of affiliates	50		(137)

(a)    Certain prior year amounts have been reclassified to conform to the current year's presentation.

Schedule of Derivatives and Fair Value

The following table summarizes the fair value of outstanding derivatives:

	March 31, 2022								December 31, 2021
	Asset(a)				Liability(b)				Asset(a)				Liability(b)
Dollars in Millions	Notional		Fair Value		Notional		Fair Value		Notional		Fair Value		Notional		Fair Value
Derivatives designated as hedging instruments:
Interest rate swap contracts	$	—	$	—	$	255	$	(3)	$	255	$	10	$	—	$	—
Cross-currency interest rate swap contracts	450		37		150		(1)		600		26		—		—
Foreign currency forward contracts	5,409		230		2,492		(44)		3,587		161		1,814		(20)
Derivatives not designated as hedging instruments:
Foreign currency forward contracts	744		21		629		(10)		883		9		568		(5)
Other	—		10		—		—		—		12		—		—

(a)    Included in Other current assets and Other non-current assets.

(b)    Included in Other current liabilities and Other non-current liabilities.

Derivative Instruments, Gain (Loss)

The following table summarizes the financial statement classification and amount of (gain)/loss recognized on hedging instruments:

	Three Months Ended March 31, 2022				Three Months Ended March 31, 2021
Dollars in Millions	Cost of products sold		Other (income)/expense, net		Cost of products sold		Other (income)/expense, net
Interest rate swap contracts	$	—	$	(11)	$	—	$	(8)
Cross-currency interest rate swap contracts	—		(4)		—		(3)
Foreign currency forward contracts	(82)		(57)		67		(32)

The following table summarizes the effect of derivative and non-derivative instruments designated as hedging instruments in Other Comprehensive Income:

	Three Months Ended March 31,
Dollars in Millions	2022		2021
Derivatives qualifying as cash flow hedges
Foreign currency forward contracts gain/(loss):
Recognized in Other Comprehensive Income(a)	$	120	$	259
Reclassified to Cost of products sold	(82)		36
Forward starting interest rate swap contract loss:
Reclassified to Other (income)/expense, net	(3)		—
Derivatives qualifying as net investment hedges
Cross-currency interest rate swap contracts gain:
Recognized in Other Comprehensive Income	13		26
Non-derivatives qualifying as net investment hedges
Non-U.S. dollar borrowings gain:
Recognized in Other Comprehensive Income	15		41

(a)    The majority is expected to be reclassified into earnings in the next 18 months.

Schedule of Short-term Debt

Short-term debt obligations include:

Dollars in Millions	March 31, 2022		December 31, 2021
Non-U.S. short-term borrowings	$	130	$	105
Current portion of long-term debt	7,297		4,764
Other	95		79
Total	$	7,522	$	4,948

Schedule of Fair Value and Other Adjustments to Long Term Debt

Long-term debt and the current portion of long-term debt include:

Dollars in Millions	March 31, 2022		December 31, 2021
Principal Value	$	43,925	$	43,095
Adjustments to Principal Value:
Fair value of interest rate swap contracts	(4)		10
Unamortized basis adjustment from swap terminations	113		119
Unamortized bond discounts and issuance costs	(303)		(263)
Unamortized purchase price adjustments of Celgene debt	1,016		1,408
Total	$	44,747	$	44,369
Current portion of long-term debt	$	7,297	$	4,764
Long-term debt	37,450		39,605
Total	$	44,747	$	44,369