Segments of Business and Geographic Areas (Tables)

6 Months Ended

Jun. 28, 2020

Segment Reporting [Abstract]

Sales By Segment Of Business

SALES BY SEGMENT OF BUSINESS

	Fiscal Second Quarter Ended					Fiscal Six Months Ended
(Dollars in Millions)	June 28, 2020		June 30, 2019	Percent Change		June 28, 2020		June 30, 2019	Percent Change
Consumer Health*
Baby Care
U.S.	$	96	99	(3.5)	%	$	188	186	1.2	%
International	260		344	(24.3)		529		651	(18.7)
Worldwide	356		443	(19.7)		717		837	(14.3)
Oral Care
U.S.	170		155	9.7		346		306	12.9
International	227		234	(2.8)		446		450	(0.8)
Worldwide	397		389	2.2		792		756	4.8
OTC
U.S.	627		484	29.6		1,316		991	32.8
International	522		580	(10.1)		1,181		1,160	1.8
Worldwide	1,149		1,064	7.9		2,497		2,151	16.1
Skin Health/Beauty
U.S.	536		663	(19.2)		1,195		1,251	(4.5)
International	471		539	(12.5)		929		1,041	(10.7)
Worldwide	1,007		1,202	(16.2)		2,124		2,292	(7.3)
Women's Health
U.S.	3		3	(2.9)		7		6	14.3
International	199		250	(20.4)		427		472	(9.6)
Worldwide	202		253	(20.1)		434		478	(9.3)
Wound Care/Other
U.S.	126		132	(4.7)		245		234	4.7
International	59		61	(2.4)		111		114	(1.9)
Worldwide	185		193	(4.0)		356		348	2.6
TOTAL Consumer Health
U.S.	1,557		1,537	1.3		3,297		2,975	10.8
International	1,739		2,007	(13.4)		3,624		3,887	(6.8)
Worldwide	3,296		3,544	(7.0)		6,921		6,862	0.9
* Previously referred to as Consumer

PHARMACEUTICAL
Immunology
U.S.	2,362	2,379	(0.7)	4,772	4,542	5.1
International	1,161	1,087	6.8	2,389	2,175	9.8
Worldwide	3,523	3,466	1.6	7,161	6,717	6.6
REMICADE®
U.S.	593	801	(25.8)	1,218	1,575	(22.7)
U.S. Exports	133	62	*	243	138	75.7
International	208	244	(14.5)	464	496	(6.4)
Worldwide	935	1,107	(15.5)	1,925	2,209	(12.9)
SIMPONI / SIMPONI ARIA®
U.S.	256	281	(8.7)	528	544	(2.9)
International	289	282	2.6	547	543	0.8
Worldwide	546	563	(3.0)	1,075	1,087	(1.1)
STELARA®
U.S.	1,138	1,058	7.5	2,355	1,940	21.4
International	558	499	11.9	1,161	1,022	13.6
Worldwide	1,697	1,558	8.9	3,516	2,963	18.7
TREMFYA®
U.S.	241	176	36.7	428	344	24.4%
International	101	59	71.0	210	108	94.0
Worldwide	342	235	45.4	638	452	41.1%
OTHER IMMUNOLOGY
U.S.	—	—	—	—	—	—
International	3	3	11.8	6	6	2.7
Worldwide	3	3	11.8	6	6	2.7
Infectious Diseases
U.S.	416	387	7.4	852	744	14.5
International	463	475	(2.5)	946	964	(1.8)
Worldwide	878	862	1.9	1,798	1,708	5.3
EDURANT® / rilpivirine
U.S.	10	12	(14.0)	22	24	(6.9)
International	246	198	24.5	458	397	15.4
Worldwide	256	210	22.2	480	421	14.1
PREZISTA® / PREZCOBIX® / REZOLSTA® / SYMTUZA®
U.S.	379	344	10.5	775	659	17.7
International	130	191	(32.0)	314	399	(21.4)
Worldwide	510	535	(4.7)	1,089	1,058	2.9
OTHER INFECTIOUS DISEASES
U.S.	25	31	(18.7)	54	61	(11.2)
International	87	86	1.0	174	168	3.8
Worldwide	113	117	(4.2)	229	229	(0.2)

Neuroscience
U.S.	778	664	17.4	1,526	1,387	10.1
International	809	875	(7.6)	1,719	1,780	(3.5)
Worldwide	1,587	1,538	3.2	3,245	3,167	2.5
CONCERTA® / methylphenidate
U.S.	55	15	*	107	112	(4.2)
International	94	123	(23.0)	212	239	(11.0)
Worldwide	149	137	8.7	320	351	(8.9)
INVEGA SUSTENNA® / XEPLION® / INVEGA TRINZA® / TREVICTA®
U.S.	576	506	13.8	1,120	989	13.2
International	303	312	(2.8)	642	619	3.7
Worldwide	879	818	7.5	1,762	1,608	9.5
RISPERDAL CONSTA®
U.S.	74	81	(9.3)	150	158	(4.9)
International	79	101	(21.2)	173	203	(14.9)
Worldwide	153	182	(15.9)	323	361	(10.5)
OTHER NEUROSCIENCE
U.S.	75	62	21.5	150	128	16.8
International	331	340	(2.5)	691	719	(3.9)
Worldwide	406	401	1.2	841	847	(0.7)
Oncology
U.S.	1,181	1,013	16.6	2,356	1,975	19.3
International	1,609	1,684	(4.4)	3,448	3,240	6.4
Worldwide	2,791	2,697	3.5	5,804	5,215	11.3
DARZALEX®
U.S.	492	369	32.9	955	721	32.3
International	409	405	1.2	883	682	29.6
Worldwide	901	774	16.3	1,838	1,403	31.0
ERLEADA®
U.S.	136	62	*	255	120	*
International	33	7	*	57	10	*
Worldwide	170	69	*	313	130	*
IMBRUVICA®
U.S.	447	367	21.5	879	716	22.6
International	502	463	8.3	1,101	898	22.6
Worldwide	949	831	14.1	1,980	1,615	22.6
VELCADE®
U.S.	—	—	—	—	—	—
International	98	224	(56.1)	206	487	(57.7)
Worldwide	98	224	(56.1)	206	487	(57.7)
ZYTIGA® / abiraterone acetate
U.S.	87	198	(55.6)	226	383	(40.9)
International	480	500	(3.9)	1,032	994	3.8
Worldwide	568	698	(18.6)	1,258	1,377	(8.6)

OTHER ONCOLOGY
U.S.	20	16	22.9	42	34	21.4
International	87	85	2.2	169	169	(0.3)
Worldwide	106	101	5.5	210	203	3.4
Pulmonary Hypertension
U.S.	545	439	24.2	1,031	869	18.7
International	243	251	(3.3)	503	477	5.3
Worldwide	789	690	14.2	1,534	1,346	13.9
OPSUMIT®
U.S.	256	203	26.1	485	375	29.3
International	150	146	3.0	310	279	11.2
Worldwide	406	348	16.5	795	654	21.6
UPTRAVI®
U.S.	254	175	44.5	466	351	32.6
International	28	28	4.0	66	50	33.6
Worldwide	282	203	39.0	532	401	32.7
OTHER PULMONARY HYPERTENSION
U.S.	37	61	(40.2)	81	143	(43.5)
International	64	78	(17.6)	126	149	(15.1)
Worldwide	101	140	(27.5)	207	292	(29.0)
Cardiovascular / Metabolism / Other
U.S.	837	902	(7.2)	1,643	1,849	(11.1)
International	347	373	(7.0)	701	771	(9.1)
Worldwide	1,184	1,275	(7.1)	2,344	2,620	(10.5)
XARELTO®
U.S.	559	549	1.7	1,086	1,091	(0.5)
International	—	—	—	—	—	—
Worldwide	559	549	1.7	1,086	1,091	(0.5)
INVOKANA® / INVOKAMET®
U.S.	132	132	(0.8)	249	286	(13.0)
International	47	43	9.1	105	92	14.1
Worldwide	179	177	1.6	354	379	(6.4)
PROCRIT® / EPREX®
U.S.	70	113	(38.3)	146	261	(44.1)
International	66	70	(5.0)	145	148	(2.2)
Worldwide	136	183	(25.6)	291	409	(28.9)
OTHER
U.S.	78	107	(27.7)	163	211	(22.9)
International	234	260	(10.2)	451	531	(15.0)
Worldwide	312	368	(15.3)	614	742	(17.3)
TOTAL PHARMACEUTICAL
U.S.	6,120	5,783	5.8	12,181	11,365	7.2
International	4,632	4,746	(2.4)	9,705	9,408	3.2
Worldwide	10,752	10,529	2.1	21,886	20,773	5.4

MEDICAL DEVICES
Interventional Solutions
U.S.	255	366	(30.5)	620	709	(12.6)
International	335	385	(12.8)	697	774	(9.9)
Worldwide	590	750	(21.5)	1,317	1,482	(11.2)
Orthopaedics
U.S.	869	1,331	(34.7)	2,119	2,649	(20.0)
International	583	894	(34.8)	1,371	1,779	(22.9)
Worldwide	1,451	2,224	(34.7)	3,489	4,428	(21.2)
HIPS
U.S.	137	216	(36.5)	343	429	(20.1)
International	88	147	(39.8)	220	295	(25.4)
Worldwide	226	364	(37.8)	563	725	(22.3)
KNEES
U.S.	108	218	(50.5)	322	441	(27.1)
International	66	153	(56.8)	196	299	(34.6)
Worldwide	174	372	(53.1)	517	741	(30.1)
TRAUMA
U.S.	354	407	(12.9)	761	824	(7.6)
International	198	265	(25.2)	445	533	(16.5)
Worldwide	553	672	(17.8)	1,207	1,357	(11.1)
SPINE, SPORTS & OTHER
U.S.	270	490	(45.0)	693	955	(27.4)
International	230	328	(29.9)	510	651	(21.7)
Worldwide	499	818	(39.0)	1,202	1,606	(25.1)
Surgery
U.S.	490	926	(47.0)	1,334	1,927	(30.8)
International	1,060	1,427	(25.7)	2,317	2,821	(17.9)
Worldwide	1,551	2,353	(34.1)	3,651	4,748	(23.1)
ADVANCED
U.S.	277	396	(30.0)	658	800	(17.7)
International	498	633	(21.2)	1,065	1,209	(11.9)
Worldwide	775	1,029	(24.6)	1,723	2,009	(14.2)
GENERAL
U.S.	213	530	(59.8)	676	1,127	(40.0)
International	562	794	(29.2)	1,252	1,612	(22.4)
Worldwide	775	1,325	(41.5)	1,928	2,739	(29.6)
Vision
U.S.	248	461	(46.1)	687	907	(24.2)
International	447	701	(36.1)	1,075	1,383	(22.3)
Worldwide	695	1,161	(40.1)	1,762	2,290	(23.0)
CONTACT LENSES / OTHER
U.S.	203	333	(39.0)	549	654	(16.1)
International	352	509	(30.9)	819	1,011	(19.0)
Worldwide	554	842	(34.1)	1,368	1,666	(17.9)

SURGICAL
U.S.	45		128	(64.6)		138		253	(45.3)
International	96		191	(49.9)		256		371	(31.0)
Worldwide	141		319	(55.8)		394		624	(36.8)
TOTAL MEDICAL DEVICES
U.S.	1,862		3,083	(39.6)		4,760		6,192	(23.1)
International	2,426		3,406	(28.8)		5,460		6,756	(19.2)
Worldwide	4,288		6,489	(33.9)		10,220		12,948	(21.1)
WORLDWIDE
U.S.	9,539		10,403	(8.3)		20,238		20,532	(1.4)
International	8,797		10,159	(13.4)		18,789		20,051	(6.3)
Worldwide	$	18,336	20,562	(10.8)	%	$	39,027	40,583	(3.8)	%

*Percentage greater than 100% or not meaningful

Operating Profit by Segment of Business

EARNINGS BEFORE PROVISION FOR TAXES BY SEGMENT

	Fiscal Second Quarter Ended					Fiscal Six Months Ended
(Dollars in Millions)	June 28, 2020		June 30, 2019	Percent Change		June 28, 2020		June 30, 2019	Percent Change
Consumer Health (1)	$	32	406	(92.1)	%	$	802	1,147	(30.1)	%
Pharmaceutical(2)	4,514		3,677	22.8		8,348		6,008	38.9
Medical Devices(3)	(354)		3,189	*		1,671		4,686	(64.3)
Segment earnings before provision for taxes	4,192		7,272	(42.4)		10,821		11,841	(8.6)
Less: Expense not allocated to segments (4)	252		231			372		378
Worldwide income before tax	$	3,940	7,041	(44.0)	%	$	10,449	11,463	(8.8)	%

*Percentage greater than 100% or not meaningful

⁽¹⁾ Includes a gain of $0.3 billion related to the Company's previously held equity investment in Ci:z Holdings Co., Ltd. (DR. CI: LABO) in the fiscal six months of 2019. Includes litigation expense of $0.6 billion and $0.2 billion in both the fiscal second quarters of 2020 and 2019, primarily talc related costs, respectively. Includes litigation expense of $0.6 billion and $0.2 billion in both the fiscal six months of 2020 and 2019, primarily talc related costs, respectively. Includes amortization expense of $0.1 billion in both the fiscal second quarters of 2020 and 2019, respectively and $0.2 billion in both the fiscal six months of 2020 and 2019, respectively.

⁽²⁾ Includes an in-process research and development expense of $0.9 billion related to the Alios asset in the fiscal six months of 2019. Includes litigation expense of $0.4 billion in the fiscal six months of 2019. Includes an unrealized gain on securities of $0.5 billion and $0.2 billion in the fiscal second quarter of 2020 and 2019, respectively. Includes an unrealized gain on securities of $0.2 billion and $0.3 billion in the fiscal six months of 2020 and 2019, respectively. Additionally, the fiscal six months of 2019 includes a research and development expense of $0.3 billion for an upfront payment related to argenx. Includes amortization expense of $0.8 billion in both the fiscal second quarters of 2020 and 2019. Includes amortization expense of $1.6 billion in both the fiscal six months of 2020 and 2019. In the fiscal second quarter and early in the third quarter of 2020, the Company entered into a series of contract manufacturing arrangements for vaccine production with third party contract manufacturing organizations. These arrangements provide the Company with future supplemental commercial capacity for vaccine production and potentially transferable rights to such production if capacity is not required. Amounts paid and contractually obligated to be paid to these contract manufacturing organizations are reflected in the prepaid expenses and other and the accrued liabilities accounts in the Company's consolidated balance sheet upon execution of each agreement. Additionally, the Company has entered into certain vaccine development cost sharing arrangements with government related organizations. The costs associated with these arrangements have not been significant through the fiscal second quarter of 2020.

⁽³⁾ Includes a contingent consideration reversal of $1.0 billion in the fiscal six months of 2020 related to the timing of certain developmental milestones associated with the Auris Health acquisition. Includes a gain of $2.0 billion from the divestiture of the ASP business in the fiscal second quarter and six months of 2019. Includes litigation expense of $0.2 billion and $0.3 billion in the fiscal second quarter and fiscal six months of 2019, respectively. Includes a restructuring related charge of $0.1 billion and

amortization expense of $0.2 billion in both the fiscal second quarters of 2020 and 2019. Includes a restructuring related charge of $0.2 billion and amortization expense of $0.5 billion in both the fiscal six months of 2020 and 2019. (4) Amounts not allocated to segments include interest income/expense and general corporate income/expense.

Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas

SALES BY GEOGRAPHIC AREA

	Fiscal Second Quarter Ended					Fiscal Six Months Ended
(Dollars in Millions)	June 28, 2020		June 30, 2019	Percent Change		June 28, 2020		June 30, 2019	Percent Change
United States	$	9,539	10,403	(8.3)	%	$	20,238	20,532	(1.4)	%
Europe	4,063		4,733	(14.2)		8,890		9,342	(4.8)
Western Hemisphere, excluding U.S.	1,133		1,455	(22.1)		2,635		2,958	(10.9)
Asia-Pacific, Africa	3,601		3,971	(9.3)		7,264		7,751	(6.3)
Total	$	18,336	20,562	(10.8)	%	$	39,027	40,583	(3.8)	%