FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2025

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, 2025						December 31, 2024
Dollars in millions	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Cash and cash equivalents
Money market and other securities	$	—	$	6,800	$	—	$	—	$	6,559	$	—
Marketable debt securities
Certificates of deposit	—		709		—		—		308		—
Corporate debt securities	—		542		—		—		486		—
U.S. Treasury securities	—		—		—		—		39		—
Derivative assets	—		305		—				750		—
Equity investments	242		31		—		247		42		—
Derivative liabilities	—		113		—		—		247		—
Contingent consideration liability
Contingent value rights(a)	2		—		256		2		—		256

(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.

Schedule of Equity Investments

The following summarizes the carrying amount of equity investments:

Dollars in millions	March 31, 2025		December 31, 2024
Equity investments with RDFV	$	273	$	289
Equity investments without RDFV	809		863
Limited partnerships and other equity method investments	604		598
Total equity investments	$	1,686	$	1,750

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	2025		2024
Equity investments with RDFV
Net (gain)/loss recognized	$	5	$	(86)
Less: net (gain)/loss recognized on investments sold	4		2
Net unrealized (gain)/loss recognized on investments still held	1		(88)
Equity investments without RDFV
Upward adjustments	—		(10)
Net realized (gain)/loss recognized on investments sold	19		—
Impairments and downward adjustments	45		25
Limited partnerships and other equity method investments
Equity in net (income)/loss of affiliates	9		(31)
Total equity investment (gains)/losses	$	78	$	(102)

Schedule of Derivatives and Fair Value

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

	March 31, 2025								December 31, 2024
	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	$	5,774	$	222	$	1,428	$	(37)	$	6,428	$	424	$	43	$	—
Cross-currency swap contracts	584		25		626		(4)		584		26		626		(30)
Designated as net investment hedges
Foreign currency exchange contracts	—		—		—		—		185		17		—		—
Cross-currency swap contracts	308		17		399		(20)		361		23		346		(7)
Designated as fair value hedges
Interest rate swap contracts	3,600		31		955		(8)		1,500		10		1,955		(20)
Not designated as hedges
Foreign currency exchange contracts	1,629		10		2,461		(23)		5,749		250		5,243		(173)
Total return swap contracts(c)	$	—	$	—	$	434	$	(21)	$	—	$	—	$	443	$	(17)

(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, Gain (Loss)

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

	Three Months Ended March 31, 2025				Three Months Ended March 31, 2024
Dollars in millions	Cost of products sold		Other (income)/expense, net		Cost of products sold		Other (income)/expense, net
Foreign exchange contracts	$	(26)	$	16	$	(45)	$	(13)
Cross-currency swap contracts	—		(50)		—		29
Interest rate swap contracts	—		(1)		—		3
Forward interest rate contracts	—		(1)		—		(1)

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

	Three Months Ended March 31,
Dollars in millions	2025		2024
Derivatives designated as cash flow hedges
Foreign exchange contracts gain/(loss):
Recognized in Other comprehensive income/(loss)	$	(216)	$	139
Reclassified to Cost of products sold	(26)		(45)
Cross-currency swap contracts gain/(loss):
Recognized in Other comprehensive income/(loss)	24		(16)
Reclassified to Other (income)/expense, net	(48)		31
Forward interest rate contract gain/(loss):
Recognized in Other comprehensive income/(loss)	—		131
Reclassified to Other (income)/expense, net	(1)		(1)
Derivatives designated as net investment hedges
Cross-currency swap contracts gain/(loss):
Recognized in Other comprehensive income/(loss)	(18)		27
Foreign exchange contracts gain/(loss):
Recognized in Other comprehensive income/(loss)	(63)		23