FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2024

Fair Value Disclosures [Abstract]

Schedule of Financial Assets and Liabilities Measured at Fair Value

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

	December 31, 2024						December 31, 2023
Dollars in millions	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Cash and cash equivalents
Money market and other securities	$	—	$	6,559	$	—	$	—	$	8,489	$	—
Marketable debt securities
Certificates of deposit	—		308		—		—		609		—
Commercial paper	—		—		—		—		92		—
Corporate debt securities	—		486		—		—		460		—
U.S. Treasury securities	—		39		—		—		19		—
Derivative assets			750		—				219		—
Equity investments	247		42		—		318		141		—
Derivative liabilities	—		247		—		—		160		—
Contingent consideration liability
Contingent value rights(a)	2		—		256		4		—		—
Other acquisition related contingent consideration	—		—		—		—		—		8

(a)    Includes the fair value of contingent value rights associated with the Mirati acquisition as further described in "—Note 4. Acquisitions, Divestitures, Licensing and Other Arrangements." The fair value of the contingent value rights was estimated using a probability-weighted expected return method.

Summary of Equity Investments Carrying Amount

The following summarizes the carrying amount of equity investments:

	December 31,
Dollars in millions	2024		2023
Equity investments with RDFV	$	289	$	459
Equity investments without RDFV	863		698
Limited partnerships and other equity method investments	598		542
Total equity investments	$	1,750	$	1,699

Schedule of Equity Investments

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

	Year ended December 31,
Dollars in millions	2024		2023		2022
Equity investments with RDFV
Net loss recognized	$	41	$	117	$	762
Less: net loss/(gain) recognized on investments sold	32		(3)		(17)
Net unrealized loss/(gain) recognized on investments still held	9		120		779
Equity investments without RDFV
Upward adjustments	(36)		(9)		(80)
Net realized (gain)/loss recognized on investments sold	(39)		—		—
Impairments and downward adjustments	62		14		11
Limited partnerships and other equity method investments
Equity in net (income)/loss of affiliates	(44)		38		108
Total equity investment (gains)/losses	(16)		160		801

Summary of Fair Value of Outstanding Derivatives

The following table summarizes the fair values and the notional values of outstanding derivatives:

	December 31, 2024				December 31, 2023
	Asset(a)		Liability(b)		Asset(a)		Liability(b)
Dollars in millions	Notional	Fair Value	Notional	Fair Value	Notional	Fair Value	Notional	Fair Value
Designated as cash flow hedges
Foreign currency exchange contracts	6,428	424	43	—	4,772	130	1,971	(66)
Cross-currency swap contracts	584	26	626	(30)	1,210	50	—	—
Designated as net investment hedges
Foreign currency exchange contracts	185	17	—	—	—	—	215	(8)
Cross-currency swap contracts	361	23	346	(7)	—	—	747	(43)
Designated as fair value hedges
Interest rate swap contracts	1,500	10	1,955	(20)	2,500	3	1,755	(14)
Not designated as hedges
Foreign currency exchange contracts	5,749	250	5,243	(173)	906	20	1,250	(29)
Total return swap contracts(c)	—	—	443	(17)	401	16	—	—

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

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

(c)    Total return swap contracts hedge changes in fair value of certain deferred compensation liabilities.

Derivative Instruments

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

	Year Ended December 31,
	2024				2023				2022
Dollars in millions	Cost of products sold		Other (income)/expense, net		Cost of products sold		Other (income)/expense, net		Cost of products sold		Other (income)/expense, net
Interest rate swap contracts	$	—	$	11	$	—	$	(5)	$	—	$	(27)
Cross-currency swap contracts	—		67		—		(65)		—		(52)
Foreign exchange contracts	(100)		(98)		(303)		(95)		(492)		(96)
Forward interest rate contracts	—		(5)		—		—		—		—

The following table summarizes the effect of derivative and non-derivative instruments designated as hedges in Other comprehensive income/(loss):

	Year Ended December 31,
Dollars in millions	2024		2023		2022
Derivatives designated as cash flow hedges
Foreign exchange contracts gain/(loss):
Recognized in Other comprehensive (loss)/income	$	418	$	13	$	592
Reclassified to Cost of products sold	(100)		(303)		(492)
Cross-currency swap contracts gain/(loss):
Recognized in Other comprehensive (loss)/income	(54)		57		(7)
Reclassified to Other (income)/expense, net	75		(31)		(29)
Forward interest rate contract gain/(loss):
Recognized in Other comprehensive (loss)/income	131		—		—
Reclassified to Other (income)/expense, net	(5)		—		(3)
Derivatives designated as net investment hedges
Cross-currency swap contracts gain/(loss):
Recognized in Other comprehensive (loss)/income	51		52		30
Foreign exchange contracts gain/(loss):
Recognized in Other comprehensive (loss)/income	35		(15)		—
Non-derivatives designated as net investment hedges
Non-U.S. dollar borrowings gain/(loss):
Recognized in Other comprehensive (loss)/income(a)	—		(10)		91

(a) In 2023, the Company de-designated its remaining net investment hedge in debt denominated in euros of €375 million, and the amount represents the effective portion of foreign exchange loss on the remeasurement of the debt.